1 00:00:02,520 --> 00:00:09,080 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Hillo, I'm so excited 2 00:00:09,119 --> 00:00:11,479 Speaker 1: to speak to Constantina, and of course it's all about AI. 3 00:00:11,560 --> 00:00:15,800 Speaker 1: He also had a great conversation with Jensen Wango Nvidia. Constantine, 4 00:00:15,880 --> 00:00:18,680 Speaker 1: thank you for joining us. I know and everyone's talking 5 00:00:18,720 --> 00:00:21,720 Speaker 1: about AI. Everyone's talking about also this deal between open 6 00:00:21,760 --> 00:00:22,720 Speaker 1: ai and AMD. 7 00:00:23,360 --> 00:00:27,400 Speaker 2: Your first thoughts, well, it's an exciting new partnership. We 8 00:00:27,400 --> 00:00:30,920 Speaker 2: were with Jensen Huang this morning and the relationship between 9 00:00:31,000 --> 00:00:34,400 Speaker 2: Nvidia and open Ai goes back a long way. In fact, 10 00:00:34,400 --> 00:00:37,400 Speaker 2: we were talking about how their very first AI factory, 11 00:00:37,479 --> 00:00:40,559 Speaker 2: the dgx one, was delivered to open ai back in 12 00:00:40,600 --> 00:00:44,239 Speaker 2: twenty sixteen to Elon Musk actually at the Sequoia offices. 13 00:00:44,800 --> 00:00:46,920 Speaker 2: And so it's just a reminder that all of this 14 00:00:46,960 --> 00:00:50,360 Speaker 2: AI revolution is powered by really impressive hardware. 15 00:00:50,720 --> 00:00:54,080 Speaker 1: You're very focused on agenta AI. We're the biggest opportunities 16 00:00:54,120 --> 00:00:55,800 Speaker 1: and why Agenda AI of. 17 00:00:55,760 --> 00:00:58,800 Speaker 2: Course, so agentic AI is AI that doesn't just make 18 00:00:58,840 --> 00:01:01,520 Speaker 2: a decision, it actually takes an action on it, and 19 00:01:01,640 --> 00:01:04,720 Speaker 2: we are now in the moment where it's really starting 20 00:01:04,720 --> 00:01:08,199 Speaker 2: to make a difference in workflows. I give a couple examples. 21 00:01:08,720 --> 00:01:12,160 Speaker 2: One is actually for a security We're investors in a 22 00:01:12,160 --> 00:01:16,119 Speaker 2: company called Expo that started off trying to find vulnerabilities 23 00:01:16,160 --> 00:01:19,360 Speaker 2: in software and now ranks number one in the world 24 00:01:19,560 --> 00:01:23,560 Speaker 2: on global vulnerability leader boards for finding vulnerabilities and fixing 25 00:01:23,560 --> 00:01:28,560 Speaker 2: them for the good guys. Another example, well, we only 26 00:01:28,680 --> 00:01:32,360 Speaker 2: actually service companies that have shown that it is we're 27 00:01:32,400 --> 00:01:36,440 Speaker 2: finding vulnerabilities on their own platforms. So it's for companies 28 00:01:36,480 --> 00:01:39,399 Speaker 2: that have been approved and gone through the vetting and the. 29 00:01:39,360 --> 00:01:41,480 Speaker 1: Second and you were saying, yeah, the second way to 30 00:01:41,520 --> 00:01:42,039 Speaker 1: do so. 31 00:01:42,080 --> 00:01:45,399 Speaker 2: Another example is our portfolio company, Harvey, which is actually 32 00:01:45,400 --> 00:01:50,080 Speaker 2: helping lawyers to actually complete their work faster. They're now 33 00:01:50,160 --> 00:01:53,680 Speaker 2: at over seven hundred customers and fifty eight countries. But 34 00:01:53,840 --> 00:01:56,640 Speaker 2: just to make it very real, my sister is a 35 00:01:56,680 --> 00:02:00,200 Speaker 2: general counsel at a tech company and she texts me 36 00:02:00,280 --> 00:02:02,560 Speaker 2: a couple of weekends ago and she said, Harvey just 37 00:02:02,600 --> 00:02:05,880 Speaker 2: saved my Friday night And I said, what do you mean. 38 00:02:06,040 --> 00:02:08,880 Speaker 2: She said, well, I got a contract from my CEO. 39 00:02:09,400 --> 00:02:11,320 Speaker 2: Usually it would take three three and a half hours 40 00:02:11,360 --> 00:02:13,919 Speaker 2: to turn it over, used Harvey got it done in 41 00:02:14,080 --> 00:02:18,160 Speaker 2: thirty minutes. And so that's us actually feeling AI and 42 00:02:18,200 --> 00:02:21,359 Speaker 2: agentic KI finishing workflows in the real world, but it 43 00:02:21,440 --> 00:02:22,040 Speaker 2: cost t I. 44 00:02:22,000 --> 00:02:24,160 Speaker 1: Mean, things are getting competitive, right, So how do you 45 00:02:24,240 --> 00:02:25,400 Speaker 1: back the right company? 46 00:02:26,160 --> 00:02:28,160 Speaker 2: So we always look at the team at the end 47 00:02:28,160 --> 00:02:31,440 Speaker 2: of the day, especially for early stage investing. We're looking 48 00:02:31,480 --> 00:02:35,200 Speaker 2: for the founders that are going to endure and persist 49 00:02:35,240 --> 00:02:37,960 Speaker 2: through ups and downs. We know that AI is going 50 00:02:38,000 --> 00:02:42,480 Speaker 2: to have its moments of excitement but also moments of difficulty, 51 00:02:42,560 --> 00:02:45,040 Speaker 2: and we look at the long duration and in long 52 00:02:45,120 --> 00:02:46,639 Speaker 2: duration we think it's undervalued. 53 00:02:46,680 --> 00:02:49,399 Speaker 1: Still, what are the other impacts that actually this could 54 00:02:49,440 --> 00:02:52,080 Speaker 1: have on the economy? But also, you know there's so 55 00:02:52,160 --> 00:02:54,280 Speaker 1: much spence. How are you sure that whatever you spent 56 00:02:54,400 --> 00:02:57,880 Speaker 1: on AI you get the returns in a reasonable time frame. 57 00:02:58,200 --> 00:03:01,080 Speaker 2: Sure. So we're here at the Citial Securities conference with 58 00:03:01,120 --> 00:03:03,959 Speaker 2: a lot of leading investors and they're all talking about 59 00:03:04,320 --> 00:03:06,840 Speaker 2: what's the return on that AI? And that's what twenty 60 00:03:06,880 --> 00:03:09,240 Speaker 2: twenty six is going to be all about. How do 61 00:03:09,280 --> 00:03:12,840 Speaker 2: we actually see that return? And there's a few engines 62 00:03:12,880 --> 00:03:14,600 Speaker 2: that are going to power that. The first is new 63 00:03:14,680 --> 00:03:18,640 Speaker 2: monetization strategies. To date, most of the monetization of AI 64 00:03:18,760 --> 00:03:21,680 Speaker 2: has been subscription revenue, and you pay for a subscription 65 00:03:22,280 --> 00:03:25,000 Speaker 2: and you get a product. Well, there's a couple more 66 00:03:25,280 --> 00:03:28,440 Speaker 2: ways that companies are now monetizing. One is through usage, 67 00:03:28,760 --> 00:03:30,600 Speaker 2: so the more you use the product, the more you pay, 68 00:03:30,760 --> 00:03:33,600 Speaker 2: kind of like a real service. The other is actually 69 00:03:33,600 --> 00:03:36,520 Speaker 2: through e commerce. So last week open ai announced that 70 00:03:36,560 --> 00:03:40,760 Speaker 2: you can actually complete entire purchases on chat GPT, so 71 00:03:40,880 --> 00:03:43,200 Speaker 2: you can actually do research for the product you want 72 00:03:43,240 --> 00:03:46,720 Speaker 2: to buy and buy it through Shopify or ats completely 73 00:03:46,760 --> 00:03:49,360 Speaker 2: on the AI platform. That's something we're excited about. We 74 00:03:49,400 --> 00:03:51,760 Speaker 2: wrote a thesis that this is going to become an 75 00:03:51,760 --> 00:03:54,840 Speaker 2: important way to do commerce, and we believe that will 76 00:03:55,040 --> 00:03:57,680 Speaker 2: continue to be. The other one is new modalities, so 77 00:03:57,760 --> 00:04:01,640 Speaker 2: everybody is used AI for text based modalities. You talk 78 00:04:01,720 --> 00:04:04,280 Speaker 2: to the AI and it responds to you and text. 79 00:04:04,640 --> 00:04:08,160 Speaker 2: We've seen voice hit the mainstream. Voice has gotten so 80 00:04:08,320 --> 00:04:11,720 Speaker 2: good that with companies like Sierra, which is a portfolio 81 00:04:11,760 --> 00:04:15,440 Speaker 2: company that does customer support, you can have entire conversations 82 00:04:15,560 --> 00:04:20,120 Speaker 2: with AI flawlessly, or companies like Listen Labs does market 83 00:04:20,160 --> 00:04:24,279 Speaker 2: research incredibly well with voice. And then in twenty twenty 84 00:04:24,320 --> 00:04:28,080 Speaker 2: six we'll see video start to really take center stage. 85 00:04:28,120 --> 00:04:31,600 Speaker 2: We obviously have seen Sora and Nano Banana and those 86 00:04:31,640 --> 00:04:34,200 Speaker 2: perform incredibly well. It's just the beginning for them. 87 00:04:34,960 --> 00:04:36,640 Speaker 1: Talk to me a little bit about the partnership that 88 00:04:36,680 --> 00:04:39,080 Speaker 1: you have with Citadel Securities. I mean, this was a 89 00:04:39,120 --> 00:04:42,080 Speaker 1: large amount of money from Sequoia and Citadell. Is this 90 00:04:42,120 --> 00:04:44,960 Speaker 1: a blueprint of more of these kind of agreements? 91 00:04:45,279 --> 00:04:47,800 Speaker 2: Of course, So we were the first outside investors in 92 00:04:47,839 --> 00:04:51,159 Speaker 2: Citdel Securities in twenty twenty one. We're proud to have 93 00:04:51,160 --> 00:04:54,159 Speaker 2: invested a billion dollars in the business and a lot 94 00:04:54,160 --> 00:04:56,359 Speaker 2: of the reason we invested in the company was the 95 00:04:56,480 --> 00:05:00,760 Speaker 2: technology platform that they operate on and have built. And 96 00:05:00,839 --> 00:05:04,920 Speaker 2: this technology platform has changed an entire industry. So if 97 00:05:04,960 --> 00:05:08,400 Speaker 2: you think back thirty forty years, the way that securities 98 00:05:08,400 --> 00:05:13,240 Speaker 2: were traded was really in person services. Two people would 99 00:05:13,520 --> 00:05:17,200 Speaker 2: find a price and then transact in person. And they, 100 00:05:17,400 --> 00:05:20,479 Speaker 2: especially Ken, had a vision of the future in which 101 00:05:20,720 --> 00:05:22,560 Speaker 2: you're going to actually be able to discover that price 102 00:05:23,160 --> 00:05:27,880 Speaker 2: using algorithms, predictive algorithms, and then actually be able to 103 00:05:27,920 --> 00:05:32,240 Speaker 2: complete that digitally. And we've actually seen that become the way. 104 00:05:32,400 --> 00:05:35,520 Speaker 2: The vast majority of equities are now traded digitally, and 105 00:05:35,560 --> 00:05:39,080 Speaker 2: it's just the beginning. So only eight percent of fixed 106 00:05:39,080 --> 00:05:42,920 Speaker 2: income is traded digitally. There's another ninety two percent to go, 107 00:05:43,400 --> 00:05:47,080 Speaker 2: we see big expanding markets, and frankly, it also reminds 108 00:05:47,160 --> 00:05:49,840 Speaker 2: us of the AI revolution and the agentic revolution, where 109 00:05:49,839 --> 00:05:52,359 Speaker 2: it starts off manual and then you get AI to 110 00:05:52,360 --> 00:05:54,640 Speaker 2: make a prediction and then like an agent, you actually 111 00:05:54,640 --> 00:05:55,599 Speaker 2: complete it digitally. 112 00:05:56,360 --> 00:05:58,240 Speaker 1: I mean, this is basically an industry being disrupted. 113 00:05:58,720 --> 00:05:58,840 Speaker 2: Right. 114 00:05:59,000 --> 00:06:01,640 Speaker 1: Is there still one industry that we haven't thought about 115 00:06:01,680 --> 00:06:04,880 Speaker 1: that you're looking at, ah that will be significantly disrupted? 116 00:06:05,480 --> 00:06:10,240 Speaker 2: There always is, There always is an industry for disruption, 117 00:06:10,360 --> 00:06:12,480 Speaker 2: but also for innovation. You know, we want to make 118 00:06:12,480 --> 00:06:16,120 Speaker 2: people's lives better. I think an industry that could have 119 00:06:16,160 --> 00:06:19,040 Speaker 2: a lot of innovation that would help everyone is health care. 120 00:06:20,080 --> 00:06:21,599 Speaker 2: Why do I say that, Well, there's a lot of 121 00:06:21,640 --> 00:06:24,800 Speaker 2: spend in healthcare. It's incredibly important, and we're not all 122 00:06:24,800 --> 00:06:28,680 Speaker 2: getting the services that we could. So my wife is 123 00:06:28,720 --> 00:06:31,800 Speaker 2: a surgeon in health care. She has from her health 124 00:06:31,800 --> 00:06:34,720 Speaker 2: system hundreds of patients that could come through and get 125 00:06:34,760 --> 00:06:37,839 Speaker 2: those procedures. She still spends a lot of time writing 126 00:06:37,880 --> 00:06:41,359 Speaker 2: notes and actually doing tasks that an AI can help with. 127 00:06:41,760 --> 00:06:44,360 Speaker 2: In fact, now an AI is helping so her health system. 128 00:06:44,440 --> 00:06:47,400 Speaker 2: She uses open evidence, which is now used by forty 129 00:06:47,400 --> 00:06:50,920 Speaker 2: percent of physicians. She uses a Bridge, which does transcription, 130 00:06:51,680 --> 00:06:54,680 Speaker 2: and that actually helps her complete that busy work faster 131 00:06:55,160 --> 00:06:58,040 Speaker 2: so she can spend more time with patients. I'm very 132 00:06:58,080 --> 00:07:00,800 Speaker 2: hopeful that one of the areas that AI helps with 133 00:07:00,960 --> 00:07:01,479 Speaker 2: is healthcare. 134 00:07:01,680 --> 00:07:03,560 Speaker 1: Constantine, thank you so much for your time today. That's 135 00:07:03,600 --> 00:07:05,600 Speaker 1: Constantine Bluler there from Sequoia.