Speaker 1: From Mahart. We're Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed lud Love.
Speaker 2: I'm Caroline Hyde live from San Francisco, Ed Ludlow, He's
Speaker 2: on location in Palo Alto, and this.
Speaker 3: Is Bloomberg Technology. Coming up.
Speaker 2: We go live to Palanteer headquarters. That's where Ed is
Speaker 2: sitting down with the CEO, Alex Krk to.
Speaker 3: Dive into Guess What AI.
Speaker 2: Their full conversation later this hour, plus we'll push ahead
Speaker 2: to the earnings out after the bell. Broadcom is the
Speaker 2: latest company to test if this AI rally is a
Speaker 2: reality and the EU's Digital Markets Act it takes hold today,
Speaker 2: hitting big tech firms with a list of dos and don'ts.
Speaker 3: We'll break down.
Speaker 2: The epic battles already raging for Apple and so much
Speaker 2: more throughout this hour. But first look at what's happening
Speaker 2: with Apple. They cannot really catch a break. We're still
Speaker 2: lower and that's as we try to dive cell for
Speaker 2: really digest what's happening with the EU and how it's
Speaker 2: going to impact some of these big gatekeepers as their name.
Speaker 2: Let's dive into it they e use Digital Markets Act.
Speaker 2: It is coming into force today, hitting big tech firms
Speaker 2: with a broad list of dos and don'ts, and well,
Speaker 2: really they're going to face some threats of significant finds
Speaker 2: that they don't live.
Speaker 3: Up to the regulation. The aim, of course, to create a.
Speaker 2: More competitive online field and posting changes on these six
Speaker 2: so called gatekeepers. Apple is one of them, but so
Speaker 2: is Amazon, so is Google owner Alphabet, So it's tiptop Pairent, Bike, Dance, Meta, Microsoft.
Speaker 3: Today. Apple already faces questions from the EU, the.
Speaker 2: Regulators over there wanting to know about the accusations that
Speaker 2: is barring Epic Games from opening its own app store
Speaker 2: for iPhone customers in Europe.
Speaker 3: That is what these new rules are meant to be allowing.
Speaker 2: Blue Meg's Mark German has more and the battles still
Speaker 2: rages on Mark. Just give us the inside track of
Speaker 2: why we're seeing Apple not allowed this third party app
Speaker 2: store to come to light.
Speaker 4: Caroline, Apple has a law on its plate right now.
Speaker 4: It's looking for its next big thing today. Like you said,
Speaker 4: the Digital Markets Act is coming into place. There is
Speaker 4: a lawsuit coming from the United States Department of Justice
Speaker 4: before the end of the month. So They're already dealing
Speaker 4: with a lot. This latest bit completely unnecessary reading between
Speaker 4: the lines. Essentially, Apple's app store chief Phil Schiller and
Speaker 4: other people at Apple, perhaps we're upset about Tim Sweeney's
Speaker 4: tweets and response to the DMA rollout. That's Apple's way
Speaker 4: of complying with the new E regulation. Sweeney tweeted that
Speaker 4: Apple's response and their new policies are quote hot garbage.
Speaker 4: He called it malicious compliance. He had a few other
Speaker 4: choice words, or, as Phil Schiller called it in an
Speaker 4: email to him, colorful language. And so Apple decided they're
Speaker 4: going to yank Epic Game's new developer account in the
Speaker 4: European Union in Sweden that would allow Epic Games to
Speaker 4: roll out its own third party at marketplace for the
Speaker 4: iPhone in the twenty seven countries that make up the EU.
Speaker 4: Apple pulls that developer account. Now the EU is asking
Speaker 4: more questions on the launch date for these new rules.
Speaker 4: Not great, and this has the potential for the EU
Speaker 4: to continue to find Apple. Apple I think, in the
Speaker 4: mind of the EU probably doesn't have a great argument
Speaker 4: for why they did this, pulling their account because they
Speaker 4: didn't like their response on Twitter about this. It's not
Speaker 4: a great look for Apple, I would say, and it's
Speaker 4: a little childish on one hand. On the other hand,
Speaker 4: you know, there's the perspective that Apple believes that Epic
Speaker 4: Games is going to break the rules again and they
Speaker 4: to protect their users. So certainly not a great development
Speaker 4: for Apple.
Speaker 2: And we've been hearing the course, Spotify also taking issue
Speaker 2: with some of Apple's ways of working around the DMA
Speaker 2: and feeling that they're still going to be charged an
Speaker 2: untoward amount of money ultimately if you do get more
Speaker 2: than million downloads on your apps. As you say, Apple
Speaker 2: faces so many issues right now. And the key piece
Speaker 2: of reporting, of course, that you brought us last week
Speaker 2: was this almost ten billion dollar effort of a car
Speaker 2: over years of expenses that then they've retracted on. They're
Speaker 2: no longer going to be building the so called Apple car,
Speaker 2: and they're putting the money into general to AI, you've
Speaker 2: got a real deep dive on what really went wrong here.
Speaker 3: Just take us through your big take today, Mark.
Speaker 4: Yeah, I actually think that's why the stock has been
Speaker 4: down lately. Initially you saw the stock jump up when
Speaker 4: Apple pulled out of the car a week or so ago,
Speaker 4: But now I think investors are realizing what's coming next.
Speaker 4: Investors always want to buy into what the future of
Speaker 4: the company is, and that future is not so clear,
Speaker 4: and it's less clear now after pulling out of the
Speaker 4: car project. They had gigantic ambitions to build essentially what
Speaker 4: amounted to a private jet or living room on wheels.
Speaker 4: You had club style seating, recliners, you had footrests, gigantic
Speaker 4: TVs and state of the art audio system the ability
Speaker 4: to watch TV and FaceTime and game from your car
Speaker 4: while it's driving itself. From what I'm told, some of
Speaker 4: the designs of the Apple car were absolutely beautiful. It
Speaker 4: looked like a canoe EV with white wall tires, a
Speaker 4: white exterior, dark black tinted windows that could adjust their
Speaker 4: tint levels, like a Boeming Dreamline or airplane, some state
Speaker 4: of the art autonomy systems. Everything in there was state
Speaker 4: of the art. It looked nothing like you'd ever seen
Speaker 4: on the road before in mass quantities. But there were
Speaker 4: major problems from indecision on what to do, what levels
Speaker 4: of autonomy to go for. From the very top of
Speaker 4: the company. There were issues, of course about the technology
Speaker 4: and when autonomy or full autonomy would be ready. There
Speaker 4: were manufacturing concerns, competitive issues, and of course the real
Speaker 4: nature of the competitive car business and the profitability of
Speaker 4: what a car would bring and the challenges in that business.
Speaker 4: But one thing I'll say, I spoke to someone involved
Speaker 4: in the project yesterday, and you know, they really pushed
Speaker 4: back on that idea of their being profitability concerns, which
Speaker 4: there absolutely were, But this person disagreed with those concerns, saying,
Speaker 4: you know what business is harder than the automotive business,
Speaker 4: the consumer electronics business. And Apple's doing a spine there.
Speaker 2: I said, Mark German, such great reporting. We thank you
Speaker 2: for it. Let's switch gears a little bit now and
Speaker 2: go to where the optimism in the market has been.
Speaker 2: Chip makers, Broadcom earnings. They're coming after the bell today.
Speaker 2: Investors are waiting with bait in breath. I want to
Speaker 2: say if the continue is really going to be there
Speaker 2: for the AI frenzy across hardware, across chip stocks. Most common,
Speaker 2: Ryan Nicky is with us. We're pleased to welcome comment.
Speaker 2: We are anticipating big numbers, are we.
Speaker 5: Yeah, so investors are really looking at these earnings as
Speaker 5: the next gut check for as you said, the chip
Speaker 5: making stocks, the sort of hardware the pigs and shovels,
Speaker 5: if you would call them that, of the AI rally.
Speaker 5: And so what Wall Street is expecting here is for
Speaker 5: Broadcom to report about eleven point eight billion in revenue
Speaker 5: for the quarter, which is a thirty percent jump year
Speaker 5: over year.
Speaker 3: Most of that is from AI.
Speaker 5: And what they're also looking for is that the total
Speaker 5: chip sales, which in the last quarter was about fifteen
Speaker 5: percent of total chip sales, will go to about twenty
Speaker 5: five percent for the total year. So they'll be looking
Speaker 5: at an update on that is their progress. Are we
Speaker 5: moving from that fifteen percent number towards that twenty five
Speaker 5: percent number. The stock is looking really good up into
Speaker 5: the earnings. We're up about three percent today, twenty five
Speaker 5: percent year to date, and fifty percent from its last
Speaker 5: earnings release.
Speaker 3: And this has been huge.
Speaker 5: Broadcom is a little bit of an unsung AI hero,
Speaker 5: I think, because it's the tenth biggest stock in the
Speaker 5: S and P five hundred right now. It doesn't get
Speaker 5: the same shine as the star of the show in video,
Speaker 5: but it is in a similar realm. One thing investors
Speaker 5: are also looking at here is that sort of unlike
Speaker 5: in video or AMD, Broadcom is a little bit less
Speaker 5: of an AI peer place. So though AI is the
Speaker 5: biggest thing that investors will be looking at, there are
Speaker 5: other pieces of the puzzle here. So on one hand,
Speaker 5: some people say that could be really beneficial if AI
Speaker 5: is indeed a bubble, there might be some insulation for
Speaker 5: broadcome investors. But on the flip side, it could kind
Speaker 5: of hold back some of the growth that some of
Speaker 5: the AI names are seeing. So there's a lot that
Speaker 5: investors will be looking at here. If the last release
Speaker 5: was any indication of what's coming on the call and
Speaker 5: the future guidance from CEO Hockey tand is going to
Speaker 5: be really important. Last quarter, we actually shares dip a
Speaker 5: little bit and then go back up when the CEO
Speaker 5: said that AI is going to be a bright spot
Speaker 5: for them going forward.
Speaker 2: Tom and Ronicky will please to say you're going to
Speaker 2: be all across the story when the numbers come out
Speaker 2: after the bill.
Speaker 3: We really appreciate you on the show. Thank you.
Speaker 6: AI is going to create tremendous wealth and value shareholders,
Speaker 6: for stakeholders, for employees of these companies, for the people
Speaker 6: and the businesses that utilize AI. And we can't leave
Speaker 6: behind women in minorities in this value creation moment.
Speaker 2: Salesforce executive Claris she there on just how diverse workforces
Speaker 2: are key to building artificial intelligence models and creating the
Speaker 2: policies in fact, for responsible AI.
Speaker 3: We want to continue that conversation. It's a hot topic.
Speaker 7: We know.
Speaker 2: Narna Sing's with us, founder and CEO of Credo AI
Speaker 2: is a responsible AI governance company which allows businesses to
Speaker 2: ensure that their AI is compliant, transparent, auditable. And my
Speaker 2: perspective would be that your business is just up into
Speaker 2: the right people desperate to get their governance in place.
Speaker 8: Is that really happening, Caroline, Good to see you, you
Speaker 8: know right now. Governance has a very interesting connotation in
Speaker 8: the world of AI. Many see it as actually a
Speaker 8: deterrent to innovation, but that's actually not the right way
Speaker 8: to think about it. We have seen that organizations that
Speaker 8: embed and start doing governance early on in the AI
Speaker 8: journey are the ones who are.
Speaker 3: Actually showing up a inner.
Speaker 8: So I think this is a very interesting interplay between
Speaker 8: governance and innovation, and I think we're going to see
Speaker 8: that drastically changed this year.
Speaker 3: What's interesting is, I mean the headlines keep coming.
Speaker 2: I think in my colleague who's Jackiedavloss writing that there's
Speaker 2: been sort of a whistleblower over at Microsoft at the
Speaker 2: moment coming forward, saying that there are concerns within the
Speaker 2: copilot of image generation with Dali, and they feel that
Speaker 2: there's not enough governance in guardrails in place this safe
Speaker 2: image generation when it comes to these large.
Speaker 3: Language models, and we know what's happened.
Speaker 2: With Gemini where almost to correct one bias, they ended
Speaker 2: up bringing us completely ahistorical images. How could governance have
Speaker 2: perhaps fixed this ahead of time before release?
Speaker 3: Yeah, great question.
Speaker 8: So you know, GENERA and AI by itself is a
Speaker 8: very complex technology. One of the things that I think
Speaker 8: most people don't understand is it's not just a technical problem.
Speaker 8: It's a social technical set of problems that are getting
Speaker 8: introduced in artificial intelligence. So what that rule means is
Speaker 8: how could geminize problems be solved or what we are
Speaker 8: seeing with Microsoft, it actually needs oversight across your organization.
Speaker 8: It needs oversight across your systems, your AI models as
Speaker 8: well as your data sets. But more importantly, it needs
Speaker 8: stakeholder involvement. And that stakeholder involvement really comes from everyone
Speaker 8: in the organization. Your risk and compliance and data science teams,
Speaker 8: but also your users, right, So what are we actually
Speaker 8: providing these A applications for and how these users are
Speaker 8: getting impacted is really critical. And I think that's what's
Speaker 8: really critical for organizations to understand is before putting systems
Speaker 8: out in the market, not only thorough testing an evaluation,
Speaker 8: but making sure the right diverse set of eyes have
Speaker 8: been on those systems to make sure that they're actually
Speaker 8: meeting the end goal is really critical.
Speaker 2: Can you just tow me through it as if I
Speaker 2: was a customer? Yeah, what do you come in and do?
Speaker 2: How do I put this governance in place?
Speaker 3: Yeah? Absolutely? So the key thing.
Speaker 8: Is there are three core pillars of AI governance. First
Speaker 8: and foremost is alignment, Carolyn, As you can imagine, what
Speaker 8: does good look like for your organization really varies organization
Speaker 8: by organization, and that's why alignment on what are you
Speaker 8: going to measure, how often are you going to measure,
Speaker 8: how are you going to report against that alignment is
Speaker 8: really critical. So our software basically helps you with alignment
Speaker 8: as a service as step one. Now, once you've aligned,
Speaker 8: the second step is really critical is what are you testing?
Speaker 8: And as I mentioned, given the sociotechnical nature of artificial intelligence.
Speaker 8: You have to test everything from your technical AI systems. Two,
Speaker 8: how your organization is set up to actually provide that
Speaker 8: oversight and accountability. And then the last thing is how
Speaker 8: do you actually make the outcomes understandable by the diverse stakeholders.
Speaker 8: Not everyone is an AI expert, right, So how do
Speaker 8: you actually create the rist boards, the transparency reports, the
Speaker 8: audit reports so that all these different stakeholders can understand one,
Speaker 8: what are the risk within your system? But more importantly,
Speaker 8: what mitigations are you going to put in place and
Speaker 8: the accountability structures you're going to put in place to
Speaker 8: make sure this AI works for.
Speaker 3: All We've always been here before.
Speaker 2: You look at the eregulation coming in today is a
Speaker 2: highlight that many regulators feel innovation was put before safety
Speaker 2: or indeed level playing fields competition. When you're saying innovation
Speaker 2: is being seen as the offset to guard rails, do
Speaker 2: you think more regulation is.
Speaker 3: Needed to ensure that companies are.
Speaker 2: Using CREATIOAI are bringing in their guard rails.
Speaker 8: At the same time, I would say that more intentional
Speaker 8: regulation is needed. I think more guardrails and enforcement mechanisms
Speaker 8: are needed. So as an example, just think about twenty
Speaker 8: twenty four, two billion people across fifty countries are going
Speaker 8: to be an election and they're going to be voting,
Speaker 8: and majority of that is going to be powered by
Speaker 8: artificial intelligence.
Speaker 3: So when you have artificial law, is that majority going
Speaker 3: to be powered by artificial intelligence.
Speaker 8: Because they are going to get access to information, They're
Speaker 8: going to get access to text media ads which are
Speaker 8: all going to be built around artificial intelligence. And we've
Speaker 8: seen examples of defix already showing up. Right, So the
Speaker 8: key question that we should be asking ourselves is one
Speaker 8: not only what the bills and policies are in place,
Speaker 8: but how are they going to enforce it so that
Speaker 8: a normal, you know, voter, a citizen who's actually going
Speaker 8: and showing up to vote, actually has the right information
Speaker 8: before they make that very important decision for our democracy.
Speaker 2: We've already had an executive voter when it comes to AI.
Speaker 2: You advise the White House on AI. And indeed, I'm
Speaker 2: sure policymaking is government doing enough.
Speaker 3: We're seeing Congress moves swiftly enough.
Speaker 8: I would say this is the first time in the
Speaker 8: past couple of decades we've actually seen government action trying
Speaker 8: to keep pace with technology. But we are in a
Speaker 8: very different era of technology innovation where it is moving
Speaker 8: so fast, and so this is where adaptive policymaking becomes
Speaker 8: really critical. And Executive Order is a fantastic example. There
Speaker 8: were key goalposts that were put in place in Executive Order,
Speaker 8: including OMB guidance. How does federal government procure third party
Speaker 8: commercial AI? What are the safety standards that we need
Speaker 8: to establish? NIST's role in the US Safety Institute. We
Speaker 8: are a proud funding member, but I think there is
Speaker 8: more work needs that needs to happen. For example, Congress
Speaker 8: just passed the budget and this funding was.
Speaker 3: Cut by twelve percent.
Speaker 8: So what does that signal If AI safety and benchmarking
Speaker 8: is critical, I think we need to show investment dollars
Speaker 8: in those initiatives, and that's not happening.
Speaker 3: I'm imagining you're a global company. Yes, what are other
Speaker 3: companies other countries doing?
Speaker 8: Yeah, you know you mentioned Europe EUAI Act goes into
Speaker 8: effect this month, and that is a big step forward
Speaker 8: for a country that is putting European citizens rights first
Speaker 8: through a very risk base approach. The key is going
Speaker 8: to be how is that going to be enforced over
Speaker 8: the next sixteen months where each and every organization, multinational
Speaker 8: organization will have to play by the EU rules. So
Speaker 8: EUAI act is truly going to have that Brussels effect
Speaker 8: that we saw with GDPR, but at a magnitude that
Speaker 8: we can't even imagine. And this is the time that
Speaker 8: organizations need to start getting ready for it.
Speaker 3: Better thought, it are getting in ahead of time. Neverena
Speaker 3: saying we thank you so much for lending us your expertise.
Speaker 2: Today, CEO and founder of Credo Ai coming up. Sk Heinex,
Speaker 2: it's investing more than a billion dollars in South Korea
Speaker 2: this year to expand and improve the final steps in
Speaker 2: its chip manufacturing. We're going to discuss why. That's also
Speaker 2: an hang house story too. This is bringing back technology
Speaker 2: time now for talking tech. Sk Heinex rumming up. It
Speaker 2: spending on advanced chip packaging in hopes to capturing more
Speaker 2: of the burgeoning demand for the crucial component in artificial
Speaker 2: intelligence development, high bandwidth memory. Now, the firm is investing
Speaker 2: more than a billion dollars in South Korea this year
Speaker 2: to expand and improve the final steps of its chip manufacturing. Plus,
Speaker 2: China's Foreign Minister Wang Yi called the level of trade
Speaker 2: curbs that the US is imposed on the country, bewildering
Speaker 2: as his President Biden's efforts to block Beijing from advanced
Speaker 2: tech undermine a steadying of ties between the.
Speaker 3: World's two largest economies. Meanwhile, the US government is.
Speaker 2: Pressing its allies to further tighten those restrictions on China's
Speaker 2: access to semiconductor technology.
Speaker 3: The Byern administration's.
Speaker 2: Latest push, it aims to plug holes and export controls
Speaker 2: that it's levied over the past two years, basically to
Speaker 2: restrain China's progress and developing domestic chip capabilities. Let's just
Speaker 2: stick on well, the tension with US and China right now,
Speaker 2: because today the House Energy and Commerce Committee plans to
Speaker 2: act on legislation introduced by a bipartisan group of House
Speaker 2: members that would give TikTok's Chinese parent Dance just one
Speaker 2: hundred and sixty five days.
Speaker 3: To sell it for more.
Speaker 2: Let's bring in Bloomberg's Dan Flatley and Dan. That of course,
Speaker 2: seems to be where we're seeing the push going get
Speaker 2: rid of the Chinese ownership of TikTok.
Speaker 9: Yeah, you know, we've sort of been here before. It's interesting,
Speaker 9: this is the latest push and it does seem to
Speaker 9: have some momentum behind it in the sense that you know,
Speaker 9: there's a markup today as you mentioned in the House
Speaker 9: Energy and Commerce Committee. There could be potentially some Senate action,
Speaker 9: although we don't have any indication yet as to you know.
Speaker 1: How that chamber will act.
Speaker 9: But you know, this still has to go to the
Speaker 9: House floor, it still has to go to the Senate potentially,
Speaker 9: it still has to go to the President. So we're
Speaker 9: a long way from from actually seeing this happen. And
Speaker 9: you know, the TikTok has been under some form of
Speaker 9: national security review since twenty eighteen, and Trump, when he
Speaker 9: was president, tried to ban it in twenty twenty that
Speaker 9: ended up in the courts, So you know, there's still
Speaker 9: a lot of tape to play out on this, but
Speaker 9: certainly some action plan today in the House.
Speaker 2: Meanwhile, TikTok's response is, well, this is curbing free speech,
Speaker 2: a right to access to such a platform. Do you
Speaker 2: think that their argument carries weight?
Speaker 8: Yeah.
Speaker 9: I think the reason that they're making that argument is
Speaker 9: because the First Amendment challenges are where they're on their
Speaker 9: strongest legal footing. You know, there's broad exceptions and a
Speaker 9: lot of US national security laws for free speech, and
Speaker 9: so obviously that's where they intend to mount their challenge.
Speaker 9: You know, the sponsors of this bill, or at least
Speaker 9: one of them, Mike Gallagher, the chairman of the China
Speaker 9: Committee here in DC, is saying this is not a band.
Speaker 9: This is essentially just trying to excize the Chinese ownership
Speaker 9: of this company. But you know that's in some ways
Speaker 9: not really for him to say. I mean that the
Speaker 9: courts will have their say on this at some point.
Speaker 9: Certainly he has his argument to make, and he's making
Speaker 9: it right.
Speaker 2: Now down fatly brilliant that you bring us up to
Speaker 2: speed with illegal ramifications. We thank you so much. Welcome
Speaker 2: back to New Meg Technology. I'm Caroline Hyde right here
Speaker 2: in San Francisco. Now it's twenty twenty three. Venture deal
Speaker 2: making declined, you know that across the board for a
Speaker 2: second con sective year.
Speaker 3: It's pretty ugly out there.
Speaker 2: Female founders, of course, they were impacted, but interestingly they
Speaker 2: still manage to secure a record share of total deal
Speaker 2: value as according to the latter's report in Female Founders in.
Speaker 3: The VC ecosystem.
Speaker 2: It's all put together by Pitchbook and they put the
Speaker 2: data out today. Let's dig in with Amriy Donaghan just
Speaker 2: the analyst behind this research. Oh, twenty eight percent doesn't
Speaker 2: look too bad. But can you put that into actual numbers?
Speaker 2: What sort of.
Speaker 3: Money is being raised by female founders? Yeah, that's right.
Speaker 10: We're looking at a population of companies that have grown
Speaker 10: significantly over the past decade, raising tens of billions of
Speaker 10: dollars collectively. But then when you can textualize that, look
Speaker 10: at the amount of funding for companies that have no
Speaker 10: women representation on the founding teams. You're seeing companies pull
Speaker 10: in one hundreds.
Speaker 3: Of billions of dollars.
Speaker 10: So quite a bit of a difference there, but definitely
Speaker 10: seeing some resilience among those companies in twenty twenty three,
Speaker 10: as broader activity has come down, those companies are hanging
Speaker 10: onto their share of the total.
Speaker 3: Okay, So is there a number for that total?
Speaker 10: Tens of billions in the network of thirty billion about okay,
Speaker 10: So if we look at thirty billion, why is that
Speaker 10: number heading up?
Speaker 2: Is that because there's more just share a scale of
Speaker 2: numbers of individual founders and individual companies coming for money,
Speaker 2: or is it that the companies are starting to get
Speaker 2: such a size that they're able to raise a decent clip.
Speaker 10: Yeah, so we're seeing fewer companies engaging because the conditions
Speaker 10: are so difficult. So it's not a matter of the
Speaker 10: individual company numbers, it's more about the quality of those companies.
Speaker 10: So standards are getting higher for investors. They're getting more
Speaker 10: discerning with the amount of capital that they deployed to
Speaker 10: certain companies. So we're seeing larger best position companies hang
Speaker 10: on to that share, and when we look at female
Speaker 10: founded companies, we see the proportion rise, and that's indicating
Speaker 10: that those companies are already at such a high standard
Speaker 10: that they're able to pull in additional capital and have
Speaker 10: some resiliency on the downside there.
Speaker 2: So I think some of the unicorns that were inked
Speaker 2: very early in twenty twenty three that was sort of
Speaker 2: maven for example, a healthcare company run like Kate Ryder
Speaker 2: able to raise money. Is there a sector that does well?
Speaker 2: I mean, I think of healthcare being a key area
Speaker 2: of focus for female founders, or is this like more
Speaker 2: broad Are we seeing the AI revolution being driven by
Speaker 2: women too?
Speaker 10: Of course, it would not be a conversation about VC
Speaker 10: these days without mentioning AI. A lot of women really
Speaker 10: at the forefront of that. Companies like Anthropics, SCALEAI creator
Speaker 10: who we heard from earlier, really involved in this movement
Speaker 10: for sure. We're seeing that's pretty much one of the
Speaker 10: only verticals in twenty twenty three that managed to pull
Speaker 10: in more capital than the year prior. So most other
Speaker 10: sectors seeing a decline across the broader VC space, but
Speaker 10: seeing some resiliency in healthcare, like you mentioned climate tech
Speaker 10: as well, some areas that have been able to hang
Speaker 10: on to that value.
Speaker 2: It's interesting that you bring up Anthropic. We had done
Speaker 2: in on the show just earlier. But she is a
Speaker 2: co founder. Are you looking at numbers that they are
Speaker 2: within the founding team diverse there is at least one
Speaker 2: female founder, or is it more that they have to
Speaker 2: solely be lit by women.
Speaker 3: We look at both the main methodology.
Speaker 10: We're looking at companies that have at least one female founder,
Speaker 10: so they may have a male co founder, they may not.
Speaker 10: We also look at a smaller section of that total,
Speaker 10: which is just those companies with only women founders. That
Speaker 10: population much smaller, if only pulling in about a single
Speaker 10: digit percentage of the total dollars.
Speaker 2: What about the people that they're sat on the other
Speaker 2: side of the table to who are.
Speaker 3: They going to for money?
Speaker 2: Are they more diverse vcs that are tending to write
Speaker 2: the checks right?
Speaker 10: Well, that's a big part of the equation. You know,
Speaker 10: when you have founders that are looking to enter the
Speaker 10: space and break in, you need an investor that really
Speaker 10: can see the value of that founder and the company itself.
Speaker 3: So big part of the equation there when we look at.
Speaker 10: The breakdown of gender check writers at BC firms, So
Speaker 10: these are the people that ultimately determine whether or not
Speaker 10: a company gets funded. We're looking at another area that's
Speaker 10: heavily male dominated, about seventeen percent of checkerators or women
Speaker 10: in the US. So in most cases you're going to
Speaker 10: have a situation where as a female founder, you're pitching
Speaker 10: to mostly men investors. So there are definitely some implications
Speaker 10: there as well.
Speaker 2: It's a great report, thanks for bringing it to us,
Speaker 2: Amriy Donagan. Just of course a pitch book a research
Speaker 2: analyst there. Next up we talk that AI flavor with Palenteer.
Speaker 2: This is Blue med Technology.
Speaker 3: Welcome back to.
Speaker 2: Bluem Med Technology and Caroline Hide and San Francisco and
Speaker 2: well we have got to get down to Palo Alto.
Speaker 2: There's a big conversation being had around AI and Ed Ludlow.
Speaker 3: You're sat there, how has it been going?
Speaker 11: Well, We're at aip COM where the focus for Palenteer
Speaker 11: is its commercial customers, but frankly, the near term catalyst
Speaker 11: in this stock has been the contracts win around Titan.
Speaker 11: I did sit down for an extended conversation with Alex
Speaker 11: carp the palente CEO, where quite clearly he is showing
Speaker 11: progress on going to a wider commercial customer base, but
Speaker 11: also frustration about how business is done in this country.
Speaker 8: Have listened.
Speaker 1: I'm very exquisitely happy about how well we're doing, both
Speaker 1: in the government and commercially. But the most important change
Speaker 1: in the US government has nothing to do with pound here.
Speaker 1: When we got to we started building this company, the
Speaker 1: idea that software would power intelligence were fighting general health
Speaker 1: issues was viewed as something esoteric, scandalous, obviously questionable. The
Speaker 1: idea that America's primary advantage, premier advantage would be software
Speaker 1: was viewed as also esoteric, academic, self serving, and every
Speaker 1: institution in America and especially depending on have begun to
Speaker 1: come to terms with the idea. The reality that hardware
Speaker 1: driven systems purely are going inferior to software driven hardware systems.
Speaker 1: And beyond that, our adversaries are as good or better
Speaker 1: at building hardware systems and have a deficit in building software.
Speaker 11: What is different about Titan as compared to say, Maven,
Speaker 11: is that you are entering new relationships with other hardware providers,
Speaker 11: right like Anderil is one example. Explain how that is
Speaker 11: working in this case.
Speaker 1: Actually, I see this as a commonality. America needs to
Speaker 1: establish dominance on the battlefield. Maven. What's publicly known about
Speaker 1: Mavin is one of these projects that actually took what
Speaker 1: America is the best at in the world software and
Speaker 1: put it in the hands of our warfighter. By the way,
Speaker 1: at enormous costs. You're sitting in pal Alto. I had
Speaker 1: people protesting here, hundreds, putting up change in front of
Speaker 1: our office, calling us Nazis because we were dedicated to
Speaker 1: serving the American people, because we had the sense God
Speaker 1: gave a goat and we realized that if you're going
Speaker 1: to do really important things in this country, you should
Speaker 1: defend this country with every asset we have. What really
Speaker 1: happened on the Silicon Valley side is that you've got
Speaker 1: because of that success, because of the power of it,
Speaker 1: and quite frankly, because of our success, people realize this
Speaker 1: is a place where you should invest and make America
Speaker 1: even stronger. And then what happened is you've got a
Speaker 1: whole ecosystem of defense startups and an ecosystem of people
Speaker 1: inside the Pentagon who are ready to embrace that that
Speaker 1: are doing things, by the way, that are very similar
Speaker 1: to what's happening in the commercial space. And what are
Speaker 1: those things. We're going to look at software, not off
Speaker 1: power points. We're going to look at We're going to
Speaker 1: buy software from people have actually sold software commercially. And
Speaker 1: what's unique about Titan is not the difference. It's that
Speaker 1: it's the logical extension. And what is that logical extension?
Speaker 1: People who've built software products that have been used on
Speaker 1: the battlefield and used commercially. You have to ask yourself
Speaker 1: a question. If your software is so good, why have
Speaker 1: you not sold it commercially and made yourself billions of dollars.
Speaker 1: So that simple insight, which you see in the battlefield
Speaker 1: in Ukraine, which you see in Israel, is something that
Speaker 1: is hard for institutions to internalize. The Pentagon. This step
Speaker 1: is one of the most historic steps ever because what
Speaker 1: it basically says is we're going to fight for real.
Speaker 1: We're going to put the best on the battlefield. And
Speaker 1: what is the best. The best is not just some
Speaker 1: not one company. It's a team of people led by
Speaker 1: the most prominent software provider in defense in the world, talented.
Speaker 11: If there's something you said there that inside the Pentsagon
Speaker 11: people are ready for this. Bloomberg did some quite deep
Speaker 11: reporting on the use of Maven specifically in twenty twenty
Speaker 11: four so far, and the complaint from operators in the
Speaker 11: context that it's used for targeting is that it's still
Speaker 11: not quite there. It's still this is I'm just offering
Speaker 11: you an opportunity to respond to it.
Speaker 4: Now.
Speaker 1: I'm not going to respond because I'd have to tell
Speaker 1: you all sorts of things. There is no one. By
Speaker 1: the way, there was a long and very important article.
Speaker 1: Everyone should read it. What the way I read the
Speaker 1: article was, this is the most important thing, one of
Speaker 1: the most important things the Pentagon has done in decades.
Speaker 1: I can tell you the way our adversaries ma even
Speaker 1: and our friends is like, what the f how do
Speaker 1: they actually produce this? And I tell you what the
Speaker 1: average citizen read O recurs like, thank God, we're spending
Speaker 1: the money on things that are more valuable than what
Speaker 1: we're investing in. And to go into more detail, if
Speaker 1: to go to all sorts of classiz, that program is
Speaker 1: one of the shining stars of what this country has
Speaker 1: done and serves as a template for we're going on
Speaker 1: the offense. We are going to shirve dominance, and we're
Speaker 1: going to negotiate after we're the best.
Speaker 11: Alex I host the Technology Show, and I want to
Speaker 11: talk about the technology, its current capabilities, and where it
Speaker 11: can go. Is that platform ready to move from assisting
Speaker 11: in targeting, which is intelligence basically, to giving more information.
Speaker 11: The artic will also look to the idea that there
Speaker 11: is a hope from intelligence services in the US government
Speaker 11: that it can be one day in a position to
Speaker 11: recommend which weapon to use to give more tactical.
Speaker 1: Let me give you, let me give you commercial examples.
Speaker 1: Because I can't I can't go into I can't go
Speaker 1: into what it can do and what I can't do.
Speaker 1: I can tell you what we're doing commercially. Right now,
Speaker 1: you are going to see a normal non engineer sitting
Speaker 1: at their terminal tasking satellites, exporting a logic inside the
Speaker 1: security model of the company to figure out which satellite
Speaker 1: should be over which part of their agricultural assets, and
Speaker 1: what should happen based on weather conditions. Now you can
Speaker 1: just imagine how you could do that with a weapon system.
Speaker 1: This is exactly what palach your commercial not Palenteer highly
Speaker 1: classified environment, Palenteer with somebody that has been hired five
Speaker 1: days ago, that can't write code, that's very smart, may
Speaker 1: not speak English, and as just enter the enterprise is
Speaker 1: doing that workflow that is happening right now, and that
Speaker 1: is why the thing that this revolution which is highly confusing.
Speaker 1: It's highly confusing. Yeah, it's confusing because a lot of
Speaker 1: the stuff is BS. Then there's the poetry side of it.
Speaker 1: I love poetry. If I could go read more poetry,
Speaker 1: I would. Enterprises don't need more poth Yes, you mean, well,
Speaker 1: it's like I don't know somebody's delivers PowerPoint. We're gonna
Speaker 1: give you a you know. It's like, look, everybody has
Speaker 1: to try to sell something. If you don't have something
Speaker 1: to sell, you sell words. Right now, so you're selling
Speaker 1: something that doesn't work. Can't work. You're explaining to your
Speaker 1: enterprise you can't have the car you want, which is
Speaker 1: honestly pound here. But you can have the car you
Speaker 1: don't want because this and this and this and this,
Speaker 1: and you have.
Speaker 3: To buy it.
Speaker 1: And that's that's by the way, that that is a
Speaker 1: plague on many societies, less so America. There is this
Speaker 1: problem in Europe that there's really no high end software venders.
Speaker 1: Luckily our adversaries have this problem.
Speaker 11: And you've spoken about your frustrations with Europe not being
Speaker 11: more adopted.
Speaker 1: Well, I'm pro I spent half my life in Europe.
Speaker 1: I want the West to win, so I want. But
Speaker 1: it's a confusing revolution. If you're sitting there and you're
Speaker 1: sitting in society that's lead industrial evolutions for hundreds of years,
Speaker 1: and all of a sudden, the industrial evolution is happening
Speaker 1: basically in one place, and that's right here. That's confusing.
Speaker 1: It's confusing because three vendors are saying they're going to
Speaker 1: offer the same thing. One thing is like, you know,
Speaker 1: I'm going to explain to you why it doesn't work
Speaker 1: you have to buy or bs thing. The others like, oh,
Speaker 1: it does work, but it's only poetry. And then there's
Speaker 1: a third category, which judges by the fruits we provide,
Speaker 1: which is exactly what we're doing, which is like, great,
Speaker 1: We're not going to argue about this part of our product.
Speaker 1: That part of our product. I'm happy to explain it
Speaker 1: to somebody who's technical. We're going to show you what
Speaker 1: happens in four to six hours as opposed to what
Speaker 1: happened in your whole enterprise over the last two years.
Speaker 11: We will talk about the commercial business, we will talk
Speaker 11: about bootcoms, but let me just say.
Speaker 1: I know we can talk about whatever you want.
Speaker 11: A final point, you talked about the confusion of the revolution. Okay,
Speaker 11: Today probably will be the first time that a president
Speaker 11: says artificial intelligence in a State of the Union speech.
Speaker 11: So it's a very simple question, what is your summary
Speaker 11: of this administration's leadership so to speak of the US
Speaker 11: in the context of AI.
Speaker 1: You know, it's very helpful if you spend a lot
Speaker 1: of time abroad, because like, if you look at this internally,
Speaker 1: like internally in America, there's a long list of criticisms
Speaker 1: that you could make of anyone. This country is the
Speaker 1: dominant country with no second country in the world. So
Speaker 1: whatever we're doing, it's working out pretty damn well. So
Speaker 1: it's like, you know, yeah, could we be better, could
Speaker 1: we have better regulation, could we understand these things better?
Speaker 1: But again, we are dealing with a revolution. That's one
Speaker 1: of the really confusing things again for Americans is like,
Speaker 1: normally you have a revolution and multiple countries are participating.
Speaker 1: This is a revolution where the technology is pretty being
Speaker 1: produced in America, mostly in Silicon Valle.
Speaker 11: You do have multiple customers. To just bear with me
Speaker 11: on this one. Take for example, Israel, where you are
Speaker 11: doing some work with that country. The administration as an example,
Speaker 11: is pushing for a ceasefire in that region, but you
Speaker 11: are working with Israel. How do you manage that? Because
Speaker 11: it sounds like your first priority is the United States?
Speaker 1: How do we manage Look, we I'm very happy, very
Speaker 1: happily supply our products to our allies, including Israel. I
Speaker 1: don't like Israel. What's going on here is does America
Speaker 1: provide Israel with more aid? I don't think there's any
Speaker 1: question of does Israel have the right to buy the
Speaker 1: world's best technologies, assess them, and implement them. Israel, I
Speaker 1: think has decided we have some of the world's best technologies.
Speaker 1: They've implemented many of them and publicly discussed some of them,
Speaker 1: and I will palent here. I think the really orthogonal
Speaker 1: may be more question was why do we say in
Speaker 1: public what everyone else believes in private? We should defend
Speaker 1: the West, we should not apologize for fighting terrorism, and
Speaker 1: we are going to provide our sharp tools to our allies.
Speaker 1: Let's talk about the commercial business.
Speaker 11: Okay, you told my colleague Lazett Chapman one month ago,
Speaker 11: almost of the day quote, we don't know what to
Speaker 11: do with the onslaught of demand in the commercial context.
Speaker 11: Do you know one month on what to do now?
Speaker 3: No?
Speaker 1: I mean, if you're going to see a boot camp
Speaker 1: here a series of things we've had to you know,
Speaker 1: we haven't been able to meet demand. We've had to
Speaker 1: tell people we couldn't accommodate them. We have hundreds of
Speaker 1: people coming, not just people but leaders of industry. And
Speaker 1: if you just look at it from the internal dynamics
Speaker 1: of how do you deal with the contracting, how do
Speaker 1: you deal with the implementation, It's true these things have
Speaker 1: gone from taking us three months to four hours.
Speaker 11: But it's also true, but the idea is you cram
Speaker 11: four months work worth of work into the day in
Speaker 11: these boot camps.
Speaker 1: Right, It is not even a day. It's hours and
Speaker 1: so and so.
Speaker 11: Why why is that importance, Palenteer, Why did you go
Speaker 11: down that route?
Speaker 1: Well, the most important reason it's important to palent here
Speaker 1: is we can fight with people about power points and
Speaker 1: their ability to do Why.
Speaker 11: Do you keep bringing up powerpoints? Is the point you're
Speaker 11: making that your competitors go in with a debt. Absolutely,
Speaker 11: this is what we'll do. But they don't have a product.
Speaker 1: Well, I'm not saying anything. What I'm really saying is
Speaker 1: if you have it, what did you said, power co
Speaker 1: It's many times exactly. So what I'm telling to everyone
Speaker 1: there is like they may have a product, we're showing
Speaker 1: you our product. Okay, I can't comment about where they
Speaker 1: have a product. I can't tell you they're bare buttoned
Speaker 1: up and not showing any leg We show our product.
Speaker 1: And why is it important? Yes, why it's important. I'm
Speaker 1: telling you why it's important because a people fight us,
Speaker 1: or fight enterprises that are doing the most important work
Speaker 1: with slick power points and great steak dinners. We're bad
Speaker 1: at slick power points or even worse at steak dinners.
Speaker 1: We don't play golf. What we do do is we
Speaker 1: play software. We will put if you want to actually compete,
Speaker 1: compete on your product and what's very special? And yes,
Speaker 1: do I enjoy humiliating people who have better steak dinners
Speaker 1: and sharp ourn eyes and better at golf? So yes,
Speaker 1: I do you know what, I really I really like
Speaker 1: that we win in that way. It makes me very happy,
Speaker 1: and it makes our clients happy because let me sorry,
Speaker 1: let me finish.
Speaker 11: Saying, but we're getting closed great well the people.
Speaker 1: And why are our clients happy Because American industry knows
Speaker 1: that this is a structural advantage and that needs the
Speaker 1: best products. And why is the boot camp overrun? Because
Speaker 1: the clients themselves are tired of these damn steak dinners
Speaker 1: and the golf. They want to see products that actually work,
Speaker 1: that actually live up to what people are saying. What
Speaker 1: are people saying? You will transform your enterprise. You'll make
Speaker 1: it cheaper to run your enterprise, that you'll make it
Speaker 1: safer to run the enterprise. You'll be able to track
Speaker 1: what you're doing, and you'll be able to uplift workers
Speaker 1: who formerly only could be engineers, and now they can
Speaker 1: be everywhere. And by the way, you can do all
Speaker 1: this in America. You can manufacture like you or manufacturing
Speaker 1: Japan and Taiwan. In America, you can use workers that
Speaker 1: used to have to be engineers right here in this country.
Speaker 1: And why is it? It's also fun for Poundier because
Speaker 1: we are winning, Alex, I've got to ask you before
Speaker 1: I lose you.
Speaker 11: Actually, the most common question that I get to ask
Speaker 11: you from the audience I post on social media coming
Speaker 11: on is when will there be a direct to consumer
Speaker 11: or a I don't even know what we would call it,
Speaker 11: but a publicly available version of AIP And if that would, let.
Speaker 3: Me tell you.
Speaker 11: Because they see you as a leader in the space
Speaker 11: the Palenteer, not necessarily you as an individual whatever.
Speaker 1: They see this happy But okay, look, Palier, you are
Speaker 1: seeing the tip of the iceberg when you are buying
Speaker 1: our product. Now we've been working on these things.
Speaker 11: You can't buy it if you're a person off the street.
Speaker 1: You are seeing the tip of the iceberg of our
Speaker 1: product development. And we are going to show more and
Speaker 1: more and more of what we have and I think people,
Speaker 1: and I would also like a lot of those people
Speaker 1: asking the question, by the way, are non academic. They
Speaker 1: are investors in Palenteer and they have supported us when
Speaker 1: we were down on the ropes, and those are the
Speaker 1: people that we are fighting for.
Speaker 2: Anyone else thinking about steak Dinners right now? Talenteer CEO
Speaker 2: co founder Alex Kupp what an interview ed Ludlowe.
Speaker 3: Great work. Meanwhile, look, we've.
Speaker 2: Got to pivot and think about AI and ultimately getting
Speaker 2: into the hands of customers right more, How are people.
Speaker 3: Using generative AI?
Speaker 2: Amazon Web Services has just launched a new GENI competency
Speaker 2: program for partners, aiming to basically help customers figure out
Speaker 2: which partner to use, what product to be actually using
Speaker 2: within their business and have generative AI suit them and
Speaker 2: not just something that they aspire to.
Speaker 3: For more about this program and what it means.
Speaker 2: It's launch partners including the likes of Accentiakahir, Moga, dB,
Speaker 2: Hugging Face, and Video to name but a few, us
Speaker 2: bringing Amazon Web Services Vice President Worldwide Channels and Alliances
Speaker 2: Rubert Borno.
Speaker 3: Rubert I love.
Speaker 2: This focus basically on the fat that you're saying.
Speaker 3: This can't be an aspiration. People are going to be able.
Speaker 2: To use it practically in their businesses. How are they
Speaker 2: using aws and the offerings of large language models.
Speaker 3: You have to change their businesses.
Speaker 7: Caroline First of all, thank you so much for having
Speaker 7: me today. I'm really excited to be coming to you
Speaker 7: live from Seattle, where we're hosting two hundred of a
Speaker 7: WUS's most strategic partners, and we've launched just this week,
Speaker 7: the Generative AI Competency for our partners that you mentioned.
Speaker 7: I'm so excited that we have over forty five launch
Speaker 7: partners and they're doing exactly what you talked about, which
Speaker 7: is demonstrating technical expertise and generative AI technologies. We're talking
Speaker 7: about technologies like Amazon Bedrock, Amazon Stagemaker, and joh Start
Speaker 7: in Amazon Q.
Speaker 4: And why is that important?
Speaker 7: Because these partners have demonstrated not only experience and knowledge
Speaker 7: of those technologies, but customer success, customer success with multiple
Speaker 7: production ready use cases. So we're excited to showcase that
Speaker 7: to customers because customers right now are thinking, I've heard
Speaker 7: about generator AI. I know it can transform my business,
Speaker 7: but who can I work with and what are the
Speaker 7: right use cases I can use?
Speaker 2: Give us some standouts where we're already seeing use cases.
Speaker 2: How are people using Claud Threethropic's latest set of models
Speaker 2: within their business to change things?
Speaker 7: So the Anthropic Claud three announcement that we made this
Speaker 7: week is really exciting. Claude Three's Opus model is the
Speaker 7: most intelligent model on the market today and it runs
Speaker 7: on AWS Trainium and Inferentia, giving it the best price performance.
Speaker 7: But why is this interesting? What it allows customers to do.
Speaker 7: Customers like crowd Strike, which is a leading cybersecurity customer
Speaker 7: also an AWS partner, they use it to power their
Speaker 7: own generative AI capabilities and they're able to then handle
Speaker 7: things like large prompts and provide scale and safety. That's
Speaker 7: something really critical to how AWS views generative AI. And
Speaker 7: I'll give you a couple of other examples. One of
Speaker 7: our competency launch partner's Mission Cloud worked with a company
Speaker 7: called Magell and TV and this company has a large
Speaker 7: library of documentaries that they make accessible to a global audience,
Speaker 7: and what they wanted to do was to enable that
Speaker 7: audience to achieve to be able to watch those documentaries
Speaker 7: in every language. Both have transcribed the translations and also
Speaker 7: foreign language dubbing. Now that's a really tough problem because
Speaker 7: you've got to have an address slang, you've got to
Speaker 7: address profanity, you've got to address inflections for the voice dubbing.
Speaker 7: It was cost prohibitive to do the old way, it
Speaker 7: costs about twenty dollars per minute. With AI, they were
Speaker 7: able to reduce that down to less than a dollar
Speaker 7: per minute. That allowed Magel and TV to now reach
Speaker 7: a global audience nearly instantly with that technology.
Speaker 3: But I love that tangible example.
Speaker 2: What is also at the forefront of people's minds, and
Speaker 2: we've only got a minute left, is safety. How do
Speaker 2: you ensure that the offerings you're providing through bedrock aren't
Speaker 2: going to be making things up, but also more broadly
Speaker 2: have ethical implications.
Speaker 7: It's a great question, and responsible AI is core to
Speaker 7: every service from AWS. We have been designing security integrated
Speaker 7: into the products from the beginning, and it is more
Speaker 7: important with generative AI than it has ever been before.
Speaker 7: We've heard customers and partners state concerns about generative AI.
Speaker 7: Customers have the ability to aggregate data and insights from
Speaker 7: different sources, and so that's why we designed security in
Speaker 7: from the get go, to make sure there are guardrails
Speaker 7: so that individuals who should have access to the data
Speaker 7: think financial data and other proprietary information have access to it,
Speaker 7: and those that shouldn't can still make use of the
Speaker 7: general of AI tools, but have those guardrails based on
Speaker 7: the data they're allowed to have access to. So providing
Speaker 7: policy and governance to ensure that enterprises are able to
Speaker 7: protect their information. I think this is critical for every
Speaker 7: enterprise to think through and it's going to be the
Speaker 7: way that we're able to ensure that gener of AI
Speaker 7: is adopted in mass.
Speaker 2: Ruber great to have time speaking with you on the
Speaker 2: day that you're announcing this, of course, RUBERBORNO of Amazon
Speaker 2: Web Services, we appreciate it. Meanwhile, that does it for
Speaker 2: this addition of bloom bag technology. Do not forget to
Speaker 2: check out our podcast. You want to go and listen
Speaker 2: back to that Alex Karp conversation. This is bloombag technology.