1 00:00:01,360 --> 00:00:05,200 Speaker 1: We're from Mahart where innovation, money and power Collie in 2 00:00:05,320 --> 00:00:10,240 Speaker 1: Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 3 00:00:10,280 --> 00:00:11,200 Speaker 1: and Ed Ludlow. 4 00:00:26,079 --> 00:00:29,000 Speaker 2: I met Ludlow in San Francisco. Caroline hyders off today. 5 00:00:29,040 --> 00:00:32,600 Speaker 2: This is Bloomberg Technology coming up on the program. Tesla's 6 00:00:32,760 --> 00:00:36,440 Speaker 2: shock change of CFO Zat Kirkhorn has stepped down after 7 00:00:36,520 --> 00:00:39,880 Speaker 2: thirteen years at the ev maker. Meanwhile, Elon Musk's health 8 00:00:39,960 --> 00:00:42,880 Speaker 2: is in focus as talk of a Zuckerberg cage fight 9 00:00:43,360 --> 00:00:46,479 Speaker 2: heats up, and plugging a forty eight billions on a 10 00:00:46,520 --> 00:00:50,400 Speaker 2: black hole artificial intelligence could fuel a rebound at SoftBank, 11 00:00:50,640 --> 00:00:54,040 Speaker 2: as the Japanese conglomerates Vision Fund seeks to snap five 12 00:00:54,120 --> 00:00:57,360 Speaker 2: quarters of losses, and we go live to Lisbon as 13 00:00:57,400 --> 00:01:00,960 Speaker 2: a key leader responds to Portugal's probe into a European 14 00:01:01,000 --> 00:01:05,440 Speaker 2: telecoms giant artis the name we are watching so closely. 15 00:01:05,520 --> 00:01:08,480 Speaker 2: The surprise story this Monday that we all woke up to. 16 00:01:08,920 --> 00:01:13,440 Speaker 2: Zach kirkchn stepped down August fourth as Tesla's CFO. He's 17 00:01:13,440 --> 00:01:16,399 Speaker 2: been at the company thirteen years. He became CFO early 18 00:01:16,440 --> 00:01:20,560 Speaker 2: twenty nineteen. He is a big factor behind the profit 19 00:01:20,640 --> 00:01:24,280 Speaker 2: at Tesla some of the key capital raises they've done. 20 00:01:24,360 --> 00:01:27,319 Speaker 2: The chief accounting officer is going to transition into the 21 00:01:27,360 --> 00:01:30,080 Speaker 2: CFO role. Kirk CON's going to stay till the end 22 00:01:30,080 --> 00:01:33,360 Speaker 2: of the year to oversee that transition. Pierre Faragu of 23 00:01:33,400 --> 00:01:36,280 Speaker 2: New Street Research currently has a buy rating on Tesla 24 00:01:36,360 --> 00:01:40,040 Speaker 2: and joins us to discuss. Pierre your reaction to Zach 25 00:01:40,160 --> 00:01:41,120 Speaker 2: stepping down. 26 00:01:42,680 --> 00:01:45,840 Speaker 3: Well, very solfishly and as an analystcovering Deskla, I'm very 27 00:01:45,840 --> 00:01:50,280 Speaker 3: disappointed because Zach was like an exceptionally held through CFO 28 00:01:50,320 --> 00:01:54,000 Speaker 3: four analyst, always very very impressive in his ability to 29 00:01:54,040 --> 00:01:57,760 Speaker 3: provide like a big picture and drill into very specific 30 00:01:57,840 --> 00:02:00,160 Speaker 3: numbers he could give to give a good sound of 31 00:02:00,200 --> 00:02:05,559 Speaker 3: what was happening. So the sense of control and understanding 32 00:02:05,560 --> 00:02:10,720 Speaker 3: of how like the big Tesla machine works at at 33 00:02:10,760 --> 00:02:13,720 Speaker 3: Tesla was impressive and I'm definitely going to miss it. 34 00:02:13,720 --> 00:02:16,560 Speaker 3: It's also definitely a surprise. I was not expecting him 35 00:02:16,600 --> 00:02:19,120 Speaker 3: to live. He's very young now, as you said, thirteen 36 00:02:19,200 --> 00:02:22,160 Speaker 3: years as STEPSLA, four years as a CFO, still very young. 37 00:02:23,120 --> 00:02:25,000 Speaker 3: You know, a lot, a lot of things he can 38 00:02:25,040 --> 00:02:27,840 Speaker 3: do with his life, and quite a good, you know, 39 00:02:27,919 --> 00:02:31,080 Speaker 3: amount of money in his on his bank account because 40 00:02:31,080 --> 00:02:34,000 Speaker 3: of course, being the CFO of Tesla and going through 41 00:02:34,040 --> 00:02:38,720 Speaker 3: such like an exceptionist strong stock performance means Zach already 42 00:02:38,800 --> 00:02:42,440 Speaker 3: got paid very well for his time as TESTLIGHTE reminds me, 43 00:02:42,560 --> 00:02:44,280 Speaker 3: you know, when their own left Tesla, it was the 44 00:02:44,320 --> 00:02:49,480 Speaker 3: same thing. Tesla is the company that attracts talents the best. 45 00:02:49,280 --> 00:02:49,840 Speaker 4: In the world. 46 00:02:49,880 --> 00:02:52,800 Speaker 3: Remember there is three million applications a year. It's also 47 00:02:52,880 --> 00:02:55,959 Speaker 3: the company that has the most difficulties to retain them 48 00:02:55,960 --> 00:02:58,480 Speaker 3: in the long run, because that's the company that is 49 00:02:58,520 --> 00:03:01,520 Speaker 3: making talents very rich rapidly at the same time. 50 00:03:01,639 --> 00:03:03,520 Speaker 5: So yes, I think part of the model. 51 00:03:04,840 --> 00:03:08,799 Speaker 2: So Tesla's name Vibab Teenager as the next CFO. He's 52 00:03:08,800 --> 00:03:13,000 Speaker 2: been the chief accounting officer. Do you know anything about him? 53 00:03:13,320 --> 00:03:15,840 Speaker 3: No, I don't have the chance to meet him personally. 54 00:03:15,880 --> 00:03:19,320 Speaker 3: You know that Tesla is very very protective with the 55 00:03:19,400 --> 00:03:23,320 Speaker 3: time of their executive So I had the opportunity to 56 00:03:23,360 --> 00:03:27,320 Speaker 3: speak to Zach regularly, not so much to Vibav. You know, 57 00:03:27,639 --> 00:03:31,400 Speaker 3: he's basically coming from the ranks of Tesla. I'm very 58 00:03:31,880 --> 00:03:34,679 Speaker 3: very confident he will he will do a great job, 59 00:03:34,720 --> 00:03:38,400 Speaker 3: and I hope I will forget very soon. My regrets 60 00:03:38,400 --> 00:03:40,880 Speaker 3: of seeing Zach living and I'm sure ABAVS will be 61 00:03:40,920 --> 00:03:42,840 Speaker 3: very helpful with an artists as well. 62 00:03:43,720 --> 00:03:46,560 Speaker 2: Pierre, You and I on this program Bloomberg Technology have 63 00:03:46,760 --> 00:03:49,920 Speaker 2: used and talked about the term key man risk, and 64 00:03:49,960 --> 00:03:51,880 Speaker 2: the thing that we talk about in the context of 65 00:03:52,000 --> 00:03:54,240 Speaker 2: Zach was that he was one of just a handful 66 00:03:54,800 --> 00:03:59,360 Speaker 2: of stated executive officers. Right, you have Drew Baglino leading 67 00:03:59,360 --> 00:04:02,680 Speaker 2: the power in a battery business. Tom ju is now 68 00:04:02,720 --> 00:04:06,520 Speaker 2: coming over from China. But does the key man risk 69 00:04:06,920 --> 00:04:11,160 Speaker 2: conversation now get amplified because Zach, who's been such a 70 00:04:11,200 --> 00:04:13,800 Speaker 2: stable force, is now gone. 71 00:04:15,920 --> 00:04:17,120 Speaker 5: It's a very good question. 72 00:04:17,160 --> 00:04:19,120 Speaker 3: So key mander is, yes, you can't ignore that the 73 00:04:19,200 --> 00:04:22,239 Speaker 3: CFO leaves the company the stock comes down. You can't 74 00:04:22,360 --> 00:04:25,240 Speaker 3: like that makes complete sense. There is like an oportunity 75 00:04:25,480 --> 00:04:27,560 Speaker 3: risk reflected in a move like that. You never know 76 00:04:27,640 --> 00:04:32,200 Speaker 3: exactly what's behind behind it. Then yes, a CFO, and 77 00:04:32,320 --> 00:04:35,400 Speaker 3: especially a CFO with the talent of Zak, is a 78 00:04:35,440 --> 00:04:37,880 Speaker 3: key man in an organization like that. Now, if you 79 00:04:37,920 --> 00:04:40,960 Speaker 3: take a step back and look at how he learned, 80 00:04:41,040 --> 00:04:45,120 Speaker 3: most likes to manage the multiple businesses he has. He 81 00:04:45,279 --> 00:04:48,159 Speaker 3: likes to be directly speaking to very technical people, so 82 00:04:48,240 --> 00:04:51,240 Speaker 3: people like Drew typically then he likes to have a 83 00:04:51,320 --> 00:04:54,640 Speaker 3: type of either a CFO or a chief operating officer 84 00:04:55,279 --> 00:04:59,640 Speaker 3: who is in charge of running the shop. And that's 85 00:04:59,640 --> 00:05:02,719 Speaker 3: a model of SpaceX. That's the model more or less 86 00:05:02,720 --> 00:05:05,920 Speaker 3: of Tesla with like the no real CEO, but like 87 00:05:06,720 --> 00:05:10,440 Speaker 3: Zach and potentially term running the business from a financial 88 00:05:10,440 --> 00:05:14,240 Speaker 3: and commercial, financial and operational and commercial perspective. And so 89 00:05:14,960 --> 00:05:19,960 Speaker 3: that model, once again is extremely resilient as long as 90 00:05:20,000 --> 00:05:25,039 Speaker 3: you have this capability of harnessing talents and bringing them 91 00:05:25,120 --> 00:05:28,440 Speaker 3: up the pyramid. And look at someone like Tom, like 92 00:05:28,480 --> 00:05:33,520 Speaker 3: the trajectory in China Tesla very similar to the trajectory 93 00:05:33,560 --> 00:05:36,760 Speaker 3: of that in the finance department, Like these people came 94 00:05:36,839 --> 00:05:40,000 Speaker 3: in very highly selected by Tesla and amongst all these 95 00:05:40,240 --> 00:05:43,960 Speaker 3: very high high quality talents Tesla has, Tesla is extremely 96 00:05:43,960 --> 00:05:48,680 Speaker 3: good at promoting very very fast, very young talents. So 97 00:05:48,839 --> 00:05:51,839 Speaker 3: as long as that machine is there. As an analyst 98 00:05:51,839 --> 00:05:53,880 Speaker 3: looking at the stock, looking at the long term, even 99 00:05:53,920 --> 00:05:57,760 Speaker 3: the medium term, I feel that the key man risk 100 00:05:57,839 --> 00:05:59,320 Speaker 3: is what it is. We'll see, you know, in the 101 00:05:59,320 --> 00:06:02,840 Speaker 3: next few months, Skipper of you know, they's anything more 102 00:06:02,960 --> 00:06:05,520 Speaker 3: to know about the situation. But I feel a relatively 103 00:06:05,560 --> 00:06:09,160 Speaker 3: confident we shouldn't meet excessively. 104 00:06:10,000 --> 00:06:11,640 Speaker 5: PF fair agree. New Street Research. 105 00:06:11,680 --> 00:06:14,400 Speaker 2: Always grateful for your time and your reaction to what 106 00:06:14,480 --> 00:06:16,000 Speaker 2: was a surprise piece of news this morning. 107 00:06:16,040 --> 00:06:16,359 Speaker 5: Thank you. 108 00:06:16,800 --> 00:06:20,159 Speaker 2: Let's stick with Musk over the weekend. Elon posted on 109 00:06:20,440 --> 00:06:22,640 Speaker 2: x formerly known as Twitter, that he's going to have 110 00:06:22,640 --> 00:06:25,160 Speaker 2: an MRI of his neck and upper back and he's 111 00:06:25,200 --> 00:06:28,680 Speaker 2: going to find out whether or not he'll need surgery. This, 112 00:06:28,839 --> 00:06:32,799 Speaker 2: of course, ahead of a proposed cage fight with Meta's 113 00:06:32,839 --> 00:06:36,280 Speaker 2: co founder Mark Zuckerberg joined me out of DC. Bloomberg's 114 00:06:36,320 --> 00:06:39,160 Speaker 2: Jackie Davlos. You and I have been through all of 115 00:06:39,200 --> 00:06:42,840 Speaker 2: the posts, all of the timelines, all of the ideas. 116 00:06:42,960 --> 00:06:46,240 Speaker 2: What do we know is the latest about this proposed 117 00:06:46,279 --> 00:06:46,760 Speaker 2: cage fight. 118 00:06:48,120 --> 00:06:51,800 Speaker 6: Well, and we know that cage fight is still up 119 00:06:51,839 --> 00:06:54,159 Speaker 6: in the air, so our eager audience out there shouldn't 120 00:06:54,160 --> 00:06:56,240 Speaker 6: put their beds in just yet. But what we do 121 00:06:56,360 --> 00:06:59,280 Speaker 6: know is that Elon must sort of put the kebash 122 00:06:59,360 --> 00:07:03,440 Speaker 6: on what's seemed to be an advancement in a proposed 123 00:07:03,520 --> 00:07:06,960 Speaker 6: match between the two tech billionaires because of his injury 124 00:07:07,000 --> 00:07:09,400 Speaker 6: to his upper neck and to his neck and upper back. 125 00:07:09,800 --> 00:07:12,640 Speaker 6: Now it seemed to be escalating earlier in the day, 126 00:07:12,720 --> 00:07:17,960 Speaker 6: because when Elon Musk first posted that Sunday that the 127 00:07:18,040 --> 00:07:20,240 Speaker 6: batch should be live stream on next and that these 128 00:07:20,280 --> 00:07:24,680 Speaker 6: proceeds would be going to charity, Mark Zuckerberg actually responded 129 00:07:24,720 --> 00:07:28,000 Speaker 6: to that and said, hey, look, I suggested that we 130 00:07:28,160 --> 00:07:31,600 Speaker 6: have this on August twenty six. Haven't heard back, and 131 00:07:31,680 --> 00:07:34,360 Speaker 6: so a physical match may not be playing out, but 132 00:07:34,400 --> 00:07:37,000 Speaker 6: they're certainly throwing punches at each other on their respective 133 00:07:37,120 --> 00:07:38,080 Speaker 6: platforms already. 134 00:07:38,760 --> 00:07:40,920 Speaker 2: You know, you and I cover technology, and the platforms 135 00:07:40,960 --> 00:07:44,440 Speaker 2: are at the heart of this. You mentioned Zuckerberg's response 136 00:07:44,560 --> 00:07:48,480 Speaker 2: threads being more reliable outside of the tech. 137 00:07:49,280 --> 00:07:51,600 Speaker 5: What do we know about the training that's going on, Like, 138 00:07:51,720 --> 00:07:54,280 Speaker 5: is this real, Jackie? Are they really gearing up for 139 00:07:54,320 --> 00:07:54,760 Speaker 5: this fight? 140 00:07:56,080 --> 00:07:59,320 Speaker 6: Well, you know, they've both been posting pictures of them training. 141 00:07:59,440 --> 00:08:02,680 Speaker 6: We saw that post that Mark Zuckerberg had of him 142 00:08:02,720 --> 00:08:04,200 Speaker 6: with this really heavy. 143 00:08:04,040 --> 00:08:05,320 Speaker 5: Vest that he was. 144 00:08:05,320 --> 00:08:08,440 Speaker 6: Bragging about how fast he could do this particular training session. 145 00:08:08,480 --> 00:08:11,680 Speaker 6: I mean, they're really putting themselves out there in this 146 00:08:11,760 --> 00:08:14,200 Speaker 6: way that you know, at least for Zuckerberg it's a 147 00:08:14,240 --> 00:08:16,360 Speaker 6: little uncharacteristic of him. 148 00:08:16,440 --> 00:08:18,400 Speaker 7: For Elon Musk not so much. 149 00:08:18,480 --> 00:08:20,760 Speaker 6: But you know, at the end of the day, this 150 00:08:20,880 --> 00:08:23,160 Speaker 6: isn't really about a cage match. I think what a 151 00:08:23,200 --> 00:08:26,120 Speaker 6: lot of tech watchers out there realize is that the 152 00:08:26,200 --> 00:08:29,920 Speaker 6: competition between the two really has intensified because of this 153 00:08:30,280 --> 00:08:34,160 Speaker 6: tit for tat about the social platforms themselves, and so 154 00:08:34,240 --> 00:08:36,640 Speaker 6: I think this is a culmination, probably a much more 155 00:08:36,760 --> 00:08:40,480 Speaker 6: entertaining one that we normally see play out, but certainly 156 00:08:40,520 --> 00:08:41,559 Speaker 6: one that's still a little. 157 00:08:41,400 --> 00:08:42,040 Speaker 8: Bit up in the air. 158 00:08:43,080 --> 00:08:46,240 Speaker 2: Ben Bos, Jackie Davlos, everything about the oxygen out of DC. 159 00:08:46,440 --> 00:08:47,439 Speaker 5: Thank you very much. 160 00:08:48,040 --> 00:08:49,880 Speaker 2: Now, look, we spent the last couple of weeks talking 161 00:08:49,880 --> 00:08:53,800 Speaker 2: about the rebranding of Twitter two X. But what does 162 00:08:53,960 --> 00:08:59,440 Speaker 2: Martin Grassa, the co designer a Twitter's original iconic bluebird logo, 163 00:09:00,080 --> 00:09:01,120 Speaker 2: have to say about the change? 164 00:09:01,120 --> 00:09:01,840 Speaker 5: Have a listen to this. 165 00:09:02,960 --> 00:09:05,400 Speaker 9: I think with the letter form itself, it's a tough 166 00:09:05,920 --> 00:09:08,040 Speaker 9: solve that they have to come up with because it's 167 00:09:08,120 --> 00:09:12,240 Speaker 9: angular and sharp, it has an aggressive construction, and so 168 00:09:12,280 --> 00:09:14,599 Speaker 9: I think the challenge that they'll have is how to 169 00:09:14,640 --> 00:09:17,679 Speaker 9: define what X means, how to make it feel welcoming 170 00:09:18,400 --> 00:09:21,439 Speaker 9: and approachable in its own way. And it's an incredible 171 00:09:21,440 --> 00:09:24,160 Speaker 9: opportunity to have a single letter domain. I think there 172 00:09:24,240 --> 00:09:26,080 Speaker 9: is only a few of them in the world. And 173 00:09:26,080 --> 00:09:28,599 Speaker 9: they really get a chance to sort of say the 174 00:09:28,679 --> 00:09:31,920 Speaker 9: final letter in the alphabet the same way you know 175 00:09:32,080 --> 00:09:34,080 Speaker 9: people think about the bird today. I think, you know, 176 00:09:34,160 --> 00:09:38,160 Speaker 9: ten years ago, there wasn't this emotional attachment to the 177 00:09:38,160 --> 00:09:40,679 Speaker 9: bird that we see as it starts. 178 00:09:40,400 --> 00:09:43,640 Speaker 2: To you know, pull away and change the X coming 179 00:09:43,640 --> 00:09:45,240 Speaker 2: out here on Bloomberg Technology, check it. 180 00:09:45,240 --> 00:09:46,880 Speaker 5: Look at zoom shares. 181 00:09:47,559 --> 00:09:49,920 Speaker 2: We've been talking and asking is this the end of 182 00:09:49,920 --> 00:09:52,680 Speaker 2: the remote work era? When the darling of the remote 183 00:09:52,880 --> 00:09:55,320 Speaker 2: work era says to its staff, time to come back 184 00:09:55,360 --> 00:09:58,560 Speaker 2: to the office. It's time to have a conversation that next. 185 00:09:58,960 --> 00:09:59,800 Speaker 5: This is Bloomberg. 186 00:10:21,880 --> 00:10:24,520 Speaker 2: Another piece of news that we're tracking here on Bloombow Technology, 187 00:10:24,559 --> 00:10:28,800 Speaker 2: PayPal is launching a stable coin, the latest crypto payments push. 188 00:10:28,800 --> 00:10:31,400 Speaker 2: What's so interesting about this It's the first by a 189 00:10:31,520 --> 00:10:35,640 Speaker 2: large financial company and is significant joining us now who 190 00:10:35,679 --> 00:10:41,079 Speaker 2: else Bloomberg Shnali Bassekale paypaler is like the og name 191 00:10:41,160 --> 00:10:45,000 Speaker 2: in payments and then you follow in the modern era 192 00:10:45,080 --> 00:10:47,720 Speaker 2: discussion around crypto. I'm not so surprised by this, but 193 00:10:47,800 --> 00:10:49,400 Speaker 2: it is a significant piece of news. 194 00:10:49,559 --> 00:10:49,719 Speaker 7: Oh. 195 00:10:49,760 --> 00:10:52,120 Speaker 10: Absolutely, You and I talk about the PayPal mafia all 196 00:10:52,160 --> 00:10:55,320 Speaker 10: the time. Everyone from elon Musk to Max Levchen, and 197 00:10:55,320 --> 00:10:57,480 Speaker 10: so it's not surprising to see PayPal be the first 198 00:10:57,559 --> 00:11:00,520 Speaker 10: really come out and make a stable coin announce They 199 00:11:00,520 --> 00:11:03,040 Speaker 10: are also working with Paxos, which we know has been 200 00:11:03,120 --> 00:11:06,280 Speaker 10: kind of a longer standing stable coin issuer and is 201 00:11:06,360 --> 00:11:09,120 Speaker 10: regulated pretty heavily here in the United States, including with 202 00:11:09,160 --> 00:11:11,240 Speaker 10: the New York Department of Financial Services. So if they 203 00:11:11,240 --> 00:11:13,400 Speaker 10: are trying to get something off the ground, to do 204 00:11:13,440 --> 00:11:15,800 Speaker 10: it in a way that is already regulated, well known 205 00:11:15,840 --> 00:11:18,800 Speaker 10: by the regulators, it makes a lot of sense, especially 206 00:11:18,840 --> 00:11:21,400 Speaker 10: because ed if you think about the way that stable 207 00:11:21,440 --> 00:11:24,080 Speaker 10: coins are used kind of as an on ramp off ramp, 208 00:11:24,360 --> 00:11:26,320 Speaker 10: and kind of also here on the eve of the 209 00:11:26,320 --> 00:11:29,960 Speaker 10: House Financial Services Committee really trying to proceed with a 210 00:11:30,000 --> 00:11:33,240 Speaker 10: new bill here for stable coin legislation. So a lot 211 00:11:33,280 --> 00:11:36,720 Speaker 10: of movement on that front. Very unclear what the endgame is, 212 00:11:37,040 --> 00:11:39,600 Speaker 10: but as we know, PayPal has four hundred and thirty 213 00:11:39,640 --> 00:11:42,800 Speaker 10: million users here that are right for the taking. When 214 00:11:42,800 --> 00:11:45,560 Speaker 10: you think about the movement over to digital payments. 215 00:11:45,760 --> 00:11:49,120 Speaker 2: So the basics of stable coins a cryptotoken that's pegged 216 00:11:49,520 --> 00:11:52,360 Speaker 2: to a real asset like the dollar, the US dollar, 217 00:11:52,920 --> 00:11:55,640 Speaker 2: is that the case with PayPal stable coin? What are 218 00:11:55,840 --> 00:11:57,360 Speaker 2: the specifics of it. 219 00:11:57,640 --> 00:12:01,720 Speaker 10: Yeah, it's fully backed by US dollar deposits, treasuries, cash equivalents. 220 00:12:01,920 --> 00:12:04,320 Speaker 10: I think it will be interesting to see how that 221 00:12:04,440 --> 00:12:06,880 Speaker 10: works over time and who else they work with. I 222 00:12:06,920 --> 00:12:09,920 Speaker 10: think about what STA Circle has done, for example, and 223 00:12:10,040 --> 00:12:13,240 Speaker 10: Circle also has used Blackrock to manage that kind of 224 00:12:13,280 --> 00:12:16,800 Speaker 10: treasury of cash and cash equivalents. As we've seen over time, 225 00:12:16,840 --> 00:12:19,040 Speaker 10: that has been a very interesting thing to even look 226 00:12:19,120 --> 00:12:21,360 Speaker 10: under the hood. Because initially they had kept money at 227 00:12:21,400 --> 00:12:23,720 Speaker 10: Silicon Valley Banks soil Coon Valley Bank hat failed. They 228 00:12:23,800 --> 00:12:25,760 Speaker 10: worked more with Blackrock to figure out how to move 229 00:12:25,800 --> 00:12:27,880 Speaker 10: some of that money. So to the point that you're 230 00:12:27,920 --> 00:12:30,839 Speaker 10: making the linkages here to the US financial system will 231 00:12:30,880 --> 00:12:34,080 Speaker 10: be interesting to keep an eye on continuously and again 232 00:12:34,120 --> 00:12:35,080 Speaker 10: the partners. 233 00:12:34,679 --> 00:12:34,920 Speaker 7: That they have. 234 00:12:35,000 --> 00:12:37,600 Speaker 10: The other reason I think about Circle so heavily is 235 00:12:37,679 --> 00:12:41,480 Speaker 10: because of the way that coinbase, for example, uses Circle 236 00:12:41,520 --> 00:12:45,480 Speaker 10: and USDC to really manage their kind of cash holdings 237 00:12:45,520 --> 00:12:48,800 Speaker 10: here as almost a proxy, given that it's backed so 238 00:12:48,920 --> 00:12:53,040 Speaker 10: much by very stable liquid US dollars and treasuries. The 239 00:12:53,320 --> 00:12:56,920 Speaker 10: expansion of how PayPal works with the existing crypto ecosystem 240 00:12:56,960 --> 00:12:59,840 Speaker 10: in that way, how much can you use PayPal stable 241 00:13:00,400 --> 00:13:02,680 Speaker 10: given that it is back kind of just by treasuries 242 00:13:02,679 --> 00:13:05,800 Speaker 10: and cash. Will more companies like a coin base feel 243 00:13:05,840 --> 00:13:07,719 Speaker 10: comfort in doing that and work with PayPal in the 244 00:13:07,720 --> 00:13:09,920 Speaker 10: future at a greater scale is a pivotal question. 245 00:13:10,280 --> 00:13:13,320 Speaker 2: Well, quickly, we just showed a fantastic chart, mister director. 246 00:13:13,320 --> 00:13:15,280 Speaker 2: Bring it back up up there you go. You look 247 00:13:15,320 --> 00:13:18,800 Speaker 2: at the market for stable coin. It is clearly dominated 248 00:13:18,840 --> 00:13:22,480 Speaker 2: by one name, Shanale. Very quickly break down the market 249 00:13:22,520 --> 00:13:22,920 Speaker 2: for US. 250 00:13:23,040 --> 00:13:25,599 Speaker 10: Yeah, very clearly. Tether is a big part of the 251 00:13:25,600 --> 00:13:27,839 Speaker 10: stable coin market. And I think you have to look 252 00:13:27,880 --> 00:13:31,480 Speaker 10: at this ed because twenty one percent is USDC as well. 253 00:13:31,520 --> 00:13:33,559 Speaker 10: How much are people using stable coins inside of the 254 00:13:33,640 --> 00:13:36,120 Speaker 10: United States versus outside of the United States. PayPal is 255 00:13:36,120 --> 00:13:40,120 Speaker 10: still a US domiciled company and so there is a 256 00:13:40,200 --> 00:13:42,559 Speaker 10: rational for them to be working with past paxos. We've 257 00:13:42,559 --> 00:13:45,240 Speaker 10: seen issues with other stable coins through paxos, like Finance 258 00:13:45,559 --> 00:13:48,320 Speaker 10: and so but paxos again has been a very trusted 259 00:13:48,320 --> 00:13:51,280 Speaker 10: issue in the United States, with a lot of US adoption, in. 260 00:13:51,240 --> 00:13:55,840 Speaker 2: Particular Bloomberg Shnali bassec all things crypto out of New York. 261 00:13:56,320 --> 00:13:58,440 Speaker 2: All right, So the push to get tech workers back 262 00:13:58,440 --> 00:14:01,839 Speaker 2: in the office continues. This time the back to office 263 00:14:01,840 --> 00:14:04,960 Speaker 2: announcement coming from the darling of the work from home 264 00:14:05,000 --> 00:14:09,120 Speaker 2: era Zoom to discuss Thingboks Brady Ford here with us. 265 00:14:09,640 --> 00:14:11,440 Speaker 5: This was one I did not see coming. What is 266 00:14:11,480 --> 00:14:12,079 Speaker 5: Zoom saying? 267 00:14:12,840 --> 00:14:15,959 Speaker 11: Yeah, Zoom said pretty much everybody else has said, which 268 00:14:16,000 --> 00:14:18,240 Speaker 11: is we're gonna work better in the office, come back 269 00:14:18,240 --> 00:14:19,080 Speaker 11: in two days a week. 270 00:14:19,120 --> 00:14:20,760 Speaker 5: It'll be great see your colleagues. 271 00:14:21,280 --> 00:14:23,160 Speaker 11: And what's kind of funny about that to a lot 272 00:14:23,160 --> 00:14:26,120 Speaker 11: of people is right that Zoom facilitated work from home. 273 00:14:26,520 --> 00:14:31,080 Speaker 11: Without them, we'd probably all be using Skype. But yeah, 274 00:14:31,120 --> 00:14:34,200 Speaker 11: I think what's interesting here, though, is that Zoom will 275 00:14:34,240 --> 00:14:37,440 Speaker 11: say that this actually aligns pretty closely with our current strategy. 276 00:14:37,800 --> 00:14:40,640 Speaker 11: They recognize that a lot of companies are going back 277 00:14:40,680 --> 00:14:43,160 Speaker 11: at least part time, and so they've really worked on 278 00:14:43,240 --> 00:14:48,080 Speaker 11: developing software for in office collaboration hybrid and so they 279 00:14:48,120 --> 00:14:50,800 Speaker 11: figure to make these tools and make some more sense 280 00:14:50,840 --> 00:14:53,000 Speaker 11: for their workers too to be in the office at 281 00:14:53,040 --> 00:14:53,880 Speaker 11: least part of the time. 282 00:14:54,960 --> 00:14:57,960 Speaker 2: The reality of this story, Brady, as you've written about, 283 00:14:58,040 --> 00:15:01,360 Speaker 2: is that in the post pandemic world, Zoom's really struggled 284 00:15:01,520 --> 00:15:04,280 Speaker 2: to keep its pace of growth. Tell me about the 285 00:15:04,320 --> 00:15:05,520 Speaker 2: reasons why. 286 00:15:05,800 --> 00:15:09,240 Speaker 11: Absolutely well, most tech companies ended up peaking around late 287 00:15:09,320 --> 00:15:12,280 Speaker 11: twenty twenty one. Zoom peaked a fall year earlier in 288 00:15:12,320 --> 00:15:15,360 Speaker 11: October twenty twenty because there was just this elation when 289 00:15:15,360 --> 00:15:19,000 Speaker 11: everybody said we're working for home forever. We have companies 290 00:15:19,040 --> 00:15:21,520 Speaker 11: all over the place, I mean, Salesforce said we're never 291 00:15:21,560 --> 00:15:24,880 Speaker 11: going back to the office, and it became clear that 292 00:15:24,920 --> 00:15:27,520 Speaker 11: some of these old ways of working will create back 293 00:15:28,000 --> 00:15:29,760 Speaker 11: and that's really what's dented Zoom. I mean, they have 294 00:15:29,800 --> 00:15:33,760 Speaker 11: a fantastic single product. Most people will say it's better 295 00:15:33,800 --> 00:15:37,520 Speaker 11: than the competition, but it's hard to make a successful 296 00:15:37,600 --> 00:15:41,040 Speaker 11: platform company on one product, especially when most people who 297 00:15:41,080 --> 00:15:43,080 Speaker 11: want that product have already purchased it. 298 00:15:44,400 --> 00:15:48,280 Speaker 2: Let's be clear about the CEO, Eric Dwan's position on this, 299 00:15:48,360 --> 00:15:50,680 Speaker 2: though he still believes in hybrid working. 300 00:15:51,680 --> 00:15:53,560 Speaker 11: Yeah, and that's what's interesting. I think a lot of 301 00:15:53,600 --> 00:15:57,160 Speaker 11: companies that are increasingly pushing workers back to the office 302 00:15:57,440 --> 00:16:01,680 Speaker 11: will say we're staying hybrid. The question is whether that 303 00:16:01,800 --> 00:16:03,200 Speaker 11: number continues to creep up. 304 00:16:03,280 --> 00:16:03,560 Speaker 2: Right? 305 00:16:03,680 --> 00:16:06,600 Speaker 11: Does it start at two and then next year it's three, 306 00:16:06,640 --> 00:16:10,360 Speaker 11: next year it's four. Are we in a three days 307 00:16:10,360 --> 00:16:15,040 Speaker 11: a week white collar work world forever? You know, if 308 00:16:15,080 --> 00:16:18,240 Speaker 11: you look at finance Obviously some places are five days 309 00:16:18,280 --> 00:16:21,160 Speaker 11: a week. Even sales positions at a lot of tech 310 00:16:21,200 --> 00:16:23,120 Speaker 11: companies are getting to four days a week now. So 311 00:16:23,160 --> 00:16:26,440 Speaker 11: the question is whether it stabilizes hybrid or it's just 312 00:16:26,480 --> 00:16:28,880 Speaker 11: going to continue creeping back to the old ways. 313 00:16:30,360 --> 00:16:33,360 Speaker 2: Brody Forward coming to us live from an office or 314 00:16:33,400 --> 00:16:35,680 Speaker 2: office in New York City. I mean, are there any 315 00:16:35,680 --> 00:16:38,240 Speaker 2: other tech companies that you cover that are taking a 316 00:16:38,240 --> 00:16:41,480 Speaker 2: similar approach that have recalled staff in recent weeks? 317 00:16:41,600 --> 00:16:44,160 Speaker 11: Well, here's an interesting one. Amazon, because a lot of 318 00:16:44,280 --> 00:16:47,120 Speaker 11: tech companies said, hey, if you live near an office, 319 00:16:47,200 --> 00:16:49,560 Speaker 11: you have to go because a lot of hiring was 320 00:16:49,560 --> 00:16:52,800 Speaker 11: totally remote in the pandemic. Amazon took a step to 321 00:16:52,800 --> 00:16:55,280 Speaker 11: say that if you don't live near an office, you 322 00:16:55,320 --> 00:16:57,840 Speaker 11: gotta move, you gotta come back. And to me, that 323 00:16:57,880 --> 00:17:00,880 Speaker 11: was an unprecedented step within the big techies. Again, if 324 00:17:00,880 --> 00:17:03,200 Speaker 11: you look at finance or others, my guess has been 325 00:17:03,200 --> 00:17:05,000 Speaker 11: a little bit harder for a while now. 326 00:17:06,520 --> 00:17:09,159 Speaker 5: Bombos, Brady Ford always good to catch up. Thank you 327 00:17:09,200 --> 00:17:09,760 Speaker 5: out in New. 328 00:17:09,720 --> 00:17:22,159 Speaker 2: York Artisiz Patrick Drahi said he felt quote betrayed and 329 00:17:22,240 --> 00:17:25,720 Speaker 2: deceived by a small group of individuals, including one of 330 00:17:25,720 --> 00:17:28,840 Speaker 2: his oldest colleagues, This was in response to a criminal 331 00:17:28,840 --> 00:17:33,000 Speaker 2: corruption probe in Portugal focused on key figures connected to 332 00:17:33,080 --> 00:17:36,760 Speaker 2: his telecommunity communications empire. Here with the latest out of 333 00:17:36,800 --> 00:17:40,399 Speaker 2: Lisbon Bloomberg's Enriqualmeida. So let's go back to the beginning. 334 00:17:41,160 --> 00:17:44,919 Speaker 2: How did some Autists officials become caught up in a 335 00:17:44,960 --> 00:17:47,520 Speaker 2: Portuguese probe about the company. 336 00:17:48,480 --> 00:17:49,160 Speaker 4: Hi ed Well? 337 00:17:49,359 --> 00:17:52,320 Speaker 12: This all began last month when Portuguese police searched about 338 00:17:52,640 --> 00:17:55,760 Speaker 12: nightighty homes and offices in Portugal and later detained the 339 00:17:55,800 --> 00:17:59,000 Speaker 12: co founder of artist Romandu Preidra and three other people 340 00:17:59,040 --> 00:18:03,000 Speaker 12: for question. Now, prosecutors believe that Pareta and a close 341 00:18:03,119 --> 00:18:06,679 Speaker 12: group of people rigged procurement contracts at Altis's portual in 342 00:18:06,680 --> 00:18:08,320 Speaker 12: a way that harmed the group's. 343 00:18:08,200 --> 00:18:09,920 Speaker 4: Own companies for their own benefit. 344 00:18:10,560 --> 00:18:14,240 Speaker 12: Pareida is considered Drahi's right hand man, which has raised 345 00:18:14,280 --> 00:18:16,720 Speaker 12: fears that such practices could be taking place in other 346 00:18:16,760 --> 00:18:20,200 Speaker 12: countries where the group operates. The irony of this all 347 00:18:20,600 --> 00:18:22,800 Speaker 12: is that Altis has earned a name for itself here 348 00:18:22,840 --> 00:18:24,639 Speaker 12: in Portugal for cutting costs. 349 00:18:24,680 --> 00:18:25,880 Speaker 4: A union leader told me. 350 00:18:25,880 --> 00:18:28,960 Speaker 12: Last month that when Altis spot Portugal Telecom, the country's 351 00:18:28,960 --> 00:18:31,960 Speaker 12: biggest telecom company, Peda told units that he had to 352 00:18:31,960 --> 00:18:35,480 Speaker 12: cut about five thousand jobs, that's about half of the workforce. 353 00:18:35,920 --> 00:18:37,840 Speaker 4: Now he suspected, along. 354 00:18:37,600 --> 00:18:40,080 Speaker 12: With a group of other people, of allegedly setting up 355 00:18:40,119 --> 00:18:43,359 Speaker 12: businesses that want supply contracts from Altese to line up 356 00:18:43,359 --> 00:18:44,000 Speaker 12: his pockets. 357 00:18:45,160 --> 00:18:48,840 Speaker 2: Altis in Europe is just a telecom's giant now, right, 358 00:18:48,920 --> 00:18:52,480 Speaker 2: The question is, Henry, what happens if this escalates beyond 359 00:18:52,560 --> 00:18:55,840 Speaker 2: Portugal to other European countries or even the US. 360 00:18:57,160 --> 00:18:58,560 Speaker 4: Well, that's the key question here. 361 00:18:58,840 --> 00:19:01,800 Speaker 12: Altis has alleged to be a victim of foul play 362 00:19:01,960 --> 00:19:04,720 Speaker 12: and that the case for now is limited to Portugal, 363 00:19:05,400 --> 00:19:07,159 Speaker 12: but the fact that one of its co founders is 364 00:19:07,200 --> 00:19:10,119 Speaker 12: under house arrest has raised concerns of poor governance elsewhere, 365 00:19:10,400 --> 00:19:12,920 Speaker 12: and the investigation couldn't need spread to other countries where 366 00:19:12,920 --> 00:19:14,480 Speaker 12: it operates, like France. 367 00:19:14,600 --> 00:19:15,520 Speaker 4: Or the US. 368 00:19:16,040 --> 00:19:19,080 Speaker 12: One alarm bell has been the dismissal of Altis USA 369 00:19:19,240 --> 00:19:23,199 Speaker 12: chief procurement officer Yossi venture Trids, who is prayed as 370 00:19:23,280 --> 00:19:26,440 Speaker 12: son in law. Yossi and his wife Gael made headlines 371 00:19:26,440 --> 00:19:28,840 Speaker 12: in two thousand and two for buying a seventy million 372 00:19:28,840 --> 00:19:33,240 Speaker 12: apartment in Manhattan. Now, if authorities in the US get involved, 373 00:19:33,440 --> 00:19:37,040 Speaker 12: Altiace could face potential fines poor governance, but the biggest 374 00:19:37,040 --> 00:19:40,960 Speaker 12: concern for now is Altis's huge debt pile. The company's 375 00:19:41,000 --> 00:19:44,040 Speaker 12: debt has belonged to more than sixty million after years 376 00:19:44,080 --> 00:19:48,840 Speaker 12: of aggressive acquisition at the same time getting more preentive. 377 00:19:49,280 --> 00:19:51,920 Speaker 2: Yep, no, I'm sorry to cut you off with short 378 00:19:51,960 --> 00:19:53,600 Speaker 2: on time and read, but thank you for your on 379 00:19:53,640 --> 00:20:00,200 Speaker 2: the ground reporting at Lisbon will continue to track the story. 380 00:20:06,280 --> 00:20:08,680 Speaker 2: Welcome back to Bloomberg Technology. Ed love Low here in 381 00:20:08,680 --> 00:20:11,080 Speaker 2: San Francisco. The single name that I'm watching though halfway 382 00:20:11,119 --> 00:20:13,879 Speaker 2: through the program soft Bank in Japan. You look at 383 00:20:14,080 --> 00:20:17,719 Speaker 2: the parent group, SoftBank Group down nine ten to one percent, 384 00:20:18,119 --> 00:20:21,160 Speaker 2: but kind of paired its losses. We get their earnings 385 00:20:21,440 --> 00:20:24,400 Speaker 2: very late night West Coast time early hours of Tuesday 386 00:20:24,400 --> 00:20:27,920 Speaker 2: morning East Coast time. All focus on Vision Fund expected 387 00:20:27,960 --> 00:20:32,239 Speaker 2: to return to profitability after five quarters of losses in 388 00:20:32,280 --> 00:20:33,040 Speaker 2: that Vision Fund. 389 00:20:33,080 --> 00:20:34,480 Speaker 5: What's going to drive the rebound? 390 00:20:34,840 --> 00:20:38,600 Speaker 2: Bloomberg's Isabelle Lee with me now with the latest Isabelle. 391 00:20:38,760 --> 00:20:40,600 Speaker 2: This is an artificial intelligence story. 392 00:20:41,160 --> 00:20:43,960 Speaker 13: It definitely is ed and is it even a surprise? 393 00:20:44,080 --> 00:20:46,760 Speaker 13: AI is really what's going to fuel the rally or 394 00:20:46,840 --> 00:20:49,760 Speaker 13: the soft rebound? Rather modest rebound, however you want to 395 00:20:49,800 --> 00:20:51,840 Speaker 13: call it. But this is a big deal considering that 396 00:20:52,440 --> 00:20:55,480 Speaker 13: the Soft Fund Vision Fund, which is a venture capital 397 00:20:55,600 --> 00:20:59,080 Speaker 13: arm of Soft Fund, have seen losses in the past 398 00:20:59,119 --> 00:21:01,800 Speaker 13: five quarters so to the tune of forty eight billion. 399 00:21:01,920 --> 00:21:05,480 Speaker 13: So this quarter, if it sees modest gains, it'll be good. 400 00:21:05,680 --> 00:21:08,879 Speaker 13: And obviously it's written by the AI rally. You've corvered 401 00:21:08,880 --> 00:21:11,840 Speaker 13: it in this show. AI rally has just fueled all 402 00:21:11,880 --> 00:21:15,440 Speaker 13: indexes across the board NASA one hundred, so it's biggest 403 00:21:15,440 --> 00:21:18,600 Speaker 13: record ever from January to June. And the Vision funds 404 00:21:18,600 --> 00:21:19,120 Speaker 13: public holding. 405 00:21:19,200 --> 00:21:20,320 Speaker 7: It's kind of a big firm. 406 00:21:20,640 --> 00:21:22,720 Speaker 13: Kind of is probably not the best word, because it's 407 00:21:22,760 --> 00:21:25,199 Speaker 13: one point one, it's billion. It's public holdings as of 408 00:21:25,240 --> 00:21:27,800 Speaker 13: the June quarter, and among the companies that invests in 409 00:21:27,840 --> 00:21:31,240 Speaker 13: our door Dash Grab Holdings, which also saw double digit 410 00:21:31,280 --> 00:21:33,280 Speaker 13: gains this year, and it also has a steak in 411 00:21:33,359 --> 00:21:36,280 Speaker 13: China's ted Global, So they're really banking on that AI 412 00:21:36,400 --> 00:21:38,760 Speaker 13: rally and this is one of the concrete examples that 413 00:21:38,840 --> 00:21:41,320 Speaker 13: it lifts the valuation of a fund higher. 414 00:21:42,520 --> 00:21:44,880 Speaker 2: The other story we're tracking so closely here on Bloomberg 415 00:21:44,920 --> 00:21:49,840 Speaker 2: Technology is what happens to Softbanks chip unit on the 416 00:21:49,960 --> 00:21:54,240 Speaker 2: chip designer. We know that an IPO is likely in September, 417 00:21:54,280 --> 00:21:56,119 Speaker 2: a month from now, we have a good gauge of 418 00:21:56,160 --> 00:21:56,840 Speaker 2: the valuation. 419 00:21:57,359 --> 00:21:58,600 Speaker 5: How big a factor is that. 420 00:21:59,119 --> 00:22:02,159 Speaker 13: A lot of attenda on that actually, because ARM is 421 00:22:02,200 --> 00:22:04,960 Speaker 13: looking to raise around ten billion for evaluation of around 422 00:22:05,040 --> 00:22:07,640 Speaker 13: sixty to seventy billion, so that's pretty big. And if 423 00:22:07,640 --> 00:22:11,359 Speaker 13: this happens, ARMS debut will be the biggest following Ali 424 00:22:11,400 --> 00:22:14,800 Speaker 13: Baba and Metta. And you know that this has been 425 00:22:14,840 --> 00:22:17,240 Speaker 13: a big story this year. Other than AI, it's been chips. 426 00:22:17,280 --> 00:22:19,920 Speaker 13: Everything has been about chips. So soft Bank is really 427 00:22:20,040 --> 00:22:22,080 Speaker 13: banking on this, and if it happens, it's going to 428 00:22:22,119 --> 00:22:25,879 Speaker 13: be a big deal for background Vision Fund launch in 429 00:22:25,920 --> 00:22:29,480 Speaker 13: twenty seventeen, and it has investments including Apple and Qualcom. 430 00:22:29,520 --> 00:22:31,959 Speaker 13: So if ARM comes true, if it does go public, 431 00:22:31,960 --> 00:22:35,720 Speaker 13: which is a loss by the way to UK because 432 00:22:35,760 --> 00:22:37,600 Speaker 13: they initially said they would list there but now they 433 00:22:37,680 --> 00:22:40,160 Speaker 13: filed confidentially in the US, it would be a win 434 00:22:40,600 --> 00:22:43,520 Speaker 13: probably for SoftBank. Now we don't know how much SoftBank 435 00:22:43,560 --> 00:22:46,359 Speaker 13: will stell its sell. It's sick when it comes to 436 00:22:46,400 --> 00:22:49,600 Speaker 13: the IPO, but still we must be guessing that it must. 437 00:22:49,400 --> 00:22:53,280 Speaker 2: Be substantial Plambase Isabelle Lie, my good friend out in 438 00:22:53,280 --> 00:22:56,640 Speaker 2: New York, across everything Asia tech and the importance for markets. 439 00:22:56,640 --> 00:22:57,560 Speaker 5: Thank you very much. 440 00:22:57,960 --> 00:23:00,399 Speaker 2: Now up next, ROW, it's the all in one finance 441 00:23:00,440 --> 00:23:04,080 Speaker 2: and investment management platform for businesses. It's now integrating our 442 00:23:04,119 --> 00:23:08,520 Speaker 2: official intelligence into its services. ROW unveiling one click AP 443 00:23:09,119 --> 00:23:11,720 Speaker 2: to help input data in seconds that will normally take 444 00:23:11,760 --> 00:23:12,600 Speaker 2: finance teams. 445 00:23:13,040 --> 00:23:13,399 Speaker 5: Ours. 446 00:23:13,480 --> 00:23:16,480 Speaker 2: Joining us from New York is ROW CEO Everett Cook. 447 00:23:16,960 --> 00:23:19,960 Speaker 2: This is interesting because what you're doing is at the 448 00:23:20,000 --> 00:23:24,280 Speaker 2: heart of the debate of where AI disrupts. Does it 449 00:23:24,440 --> 00:23:27,879 Speaker 2: aids jobs or does it displace jobs? But just start 450 00:23:27,880 --> 00:23:30,679 Speaker 2: by explaining what your AI powered tool does. 451 00:23:31,760 --> 00:23:35,040 Speaker 7: Thank you, Ded, It's great to be here, absolutely so. 452 00:23:35,200 --> 00:23:37,920 Speaker 14: Row is an all on one finance platform that means 453 00:23:37,920 --> 00:23:41,760 Speaker 14: we combine products like banking, expense management, corporate cards, and 454 00:23:41,800 --> 00:23:44,960 Speaker 14: accounts payable, which is the newest solution that we launched 455 00:23:45,080 --> 00:23:49,040 Speaker 14: this week. We're infusing AI into all of our products, 456 00:23:49,080 --> 00:23:52,439 Speaker 14: starting with AP because we believe it contributes to a 457 00:23:52,440 --> 00:23:55,280 Speaker 14: better user experience and ultimately takes people out of the 458 00:23:55,320 --> 00:23:57,040 Speaker 14: tdum of manual data entry. 459 00:23:58,080 --> 00:23:59,720 Speaker 7: For us, we don't believe that this is a job. 460 00:24:00,600 --> 00:24:03,080 Speaker 14: We believe that it frees up finance teams to ultimately 461 00:24:03,119 --> 00:24:04,320 Speaker 14: be strategic and. 462 00:24:04,280 --> 00:24:06,240 Speaker 7: Add value to the organizations that they work for. 463 00:24:07,840 --> 00:24:11,480 Speaker 2: How much of your decision to do this was driven 464 00:24:11,520 --> 00:24:13,360 Speaker 2: by people just coming to you and saying, we need 465 00:24:13,400 --> 00:24:16,080 Speaker 2: some help. We actually need AI to do something that's 466 00:24:16,160 --> 00:24:17,920 Speaker 2: useful for us a lot. 467 00:24:18,040 --> 00:24:20,480 Speaker 14: I mean that conversation wasn't about AI, but it was 468 00:24:20,560 --> 00:24:23,960 Speaker 14: about you know, the finance team spending up to thirty 469 00:24:23,960 --> 00:24:27,280 Speaker 14: percent of their time entering data and processing payments in 470 00:24:27,320 --> 00:24:30,000 Speaker 14: a very manual way still today in twenty twenty two, 471 00:24:30,040 --> 00:24:33,240 Speaker 14: twenty twenty three. So we understood these problems, and we 472 00:24:33,320 --> 00:24:36,000 Speaker 14: understood the technology shifts that were happening with AI, and 473 00:24:36,040 --> 00:24:39,679 Speaker 14: for us, it seemed like a very logical solution to 474 00:24:39,800 --> 00:24:42,960 Speaker 14: apply to solving this very pervasive and. 475 00:24:44,560 --> 00:24:46,240 Speaker 7: Meaningful problem. 476 00:24:46,560 --> 00:24:51,600 Speaker 2: Your products and services are targeted at the CFO, finance lead, 477 00:24:51,680 --> 00:24:55,600 Speaker 2: the finance team, how do you assess their competence their 478 00:24:55,680 --> 00:24:58,840 Speaker 2: understanding of artificial intelligence? 479 00:24:59,520 --> 00:25:00,920 Speaker 5: You know, people out. 480 00:25:00,720 --> 00:25:05,080 Speaker 2: There trying to upskill as CFOs learn more about AI 481 00:25:05,400 --> 00:25:06,640 Speaker 2: and why it's important for them. 482 00:25:07,200 --> 00:25:08,040 Speaker 7: That's a great question. 483 00:25:08,200 --> 00:25:10,440 Speaker 14: I think CFOs all around the world are trying to 484 00:25:10,480 --> 00:25:11,399 Speaker 14: upscale all the time. 485 00:25:11,960 --> 00:25:14,160 Speaker 7: I think, what's What's important. 486 00:25:13,720 --> 00:25:17,639 Speaker 14: Here, though, is that they don't necessarily need to truly 487 00:25:17,680 --> 00:25:21,080 Speaker 14: learn about AI to reap the benefits of it. It's 488 00:25:21,080 --> 00:25:23,840 Speaker 14: going to immerse itself in all of the products that 489 00:25:23,880 --> 00:25:26,359 Speaker 14: they probably use. Us as a you know, as a 490 00:25:26,400 --> 00:25:29,199 Speaker 14: technology company, we're embedding it in so many products to 491 00:25:29,280 --> 00:25:30,240 Speaker 14: just make everything. 492 00:25:30,000 --> 00:25:31,240 Speaker 7: Much better for the end user. 493 00:25:31,600 --> 00:25:33,960 Speaker 14: But I think that there are you know, leading edge 494 00:25:34,520 --> 00:25:37,800 Speaker 14: CFOs and finance teams are definitely learning as much as 495 00:25:37,800 --> 00:25:39,280 Speaker 14: they can about this new technology. 496 00:25:41,000 --> 00:25:44,880 Speaker 2: Are you able to quantify the financial benefit of automating 497 00:25:44,920 --> 00:25:48,679 Speaker 2: these functions? How much time money does it save a 498 00:25:48,720 --> 00:25:49,840 Speaker 2: company on average? 499 00:25:50,200 --> 00:25:53,200 Speaker 14: So we were able to reduce sort of the typical 500 00:25:53,240 --> 00:26:00,119 Speaker 14: payment system payment process, which includes interpreting, checking, validating, and 501 00:26:00,160 --> 00:26:03,399 Speaker 14: scheduling are payable and managing that with any payment method 502 00:26:03,560 --> 00:26:05,440 Speaker 14: down from around twenty clicks to a round two. 503 00:26:06,160 --> 00:26:08,440 Speaker 7: We call the product one click ap We're going to. 504 00:26:08,359 --> 00:26:12,199 Speaker 14: Get it to one because this is really important for 505 00:26:12,240 --> 00:26:15,480 Speaker 14: those organizations that may not sound like a lot, but 506 00:26:15,520 --> 00:26:19,240 Speaker 14: you multiply that by one hundred, one thousand processes per 507 00:26:19,320 --> 00:26:21,600 Speaker 14: month or per week and it really adds up. 508 00:26:22,920 --> 00:26:25,200 Speaker 2: What about your company? Ever, I believe you raise this 509 00:26:25,280 --> 00:26:28,440 Speaker 2: series B going all the way back to December twenty 510 00:26:28,480 --> 00:26:31,720 Speaker 2: twenty one. Do you have any more financing needs or 511 00:26:31,720 --> 00:26:32,520 Speaker 2: capital needs. 512 00:26:32,840 --> 00:26:34,560 Speaker 14: We raise a meaningful Series B at the end of 513 00:26:34,560 --> 00:26:38,240 Speaker 14: twenty twenty one. We were back by amazing investors. You know, 514 00:26:38,440 --> 00:26:40,600 Speaker 14: we're continuing to put our heads down and bill. 515 00:26:42,080 --> 00:26:45,000 Speaker 2: All right, Row CEO Everett Cook, thank you very much 516 00:26:45,400 --> 00:26:48,440 Speaker 2: for your time. They're coming up here on Bloomberg Technology. 517 00:26:48,560 --> 00:26:49,560 Speaker 5: It is our VC. 518 00:26:49,520 --> 00:26:54,159 Speaker 2: Spotlight Sarah Guile, founder of Conviction AI firm, very focused 519 00:26:54,320 --> 00:26:58,159 Speaker 2: on artificial intelligence software three point zero. She's going to 520 00:26:58,200 --> 00:27:01,280 Speaker 2: join us. Next familiar face here on Bluebow Technology. This 521 00:27:02,119 --> 00:27:04,800 Speaker 2: is Bloomberg. But before we go, quick look at shares 522 00:27:05,119 --> 00:27:09,320 Speaker 2: of block trade and higher by about half a percentage point. 523 00:27:10,040 --> 00:27:12,600 Speaker 5: Head's key numbers. This is Bloomberg. 524 00:27:29,240 --> 00:27:33,480 Speaker 2: Let's shift the technology focus seven thousand miles east to Israel. 525 00:27:33,560 --> 00:27:37,080 Speaker 2: We've just been speaking exclusively with Prime Minister Benjamin Netten 526 00:27:37,160 --> 00:27:39,800 Speaker 2: Yahoo about the nation's status as a tech club. He 527 00:27:39,840 --> 00:27:42,919 Speaker 2: says his government is working hard to benefit from the 528 00:27:42,960 --> 00:27:43,639 Speaker 2: AI boom. 529 00:27:43,640 --> 00:27:44,120 Speaker 5: Have listen. 530 00:27:44,840 --> 00:27:47,480 Speaker 1: There's noise in the short term markets, there's clarity in 531 00:27:47,480 --> 00:27:51,960 Speaker 1: the long term markets. I mean, now, Amazon just invests 532 00:27:51,960 --> 00:27:55,120 Speaker 1: seven billion in cloud services year. Why are they doing that? 533 00:27:55,240 --> 00:27:57,280 Speaker 1: Because they know something I'm going to do. What I'm 534 00:27:57,359 --> 00:28:06,040 Speaker 1: organizing is government policy and the government board with money 535 00:28:06,359 --> 00:28:09,320 Speaker 1: to make us or one of the three top AI 536 00:28:09,440 --> 00:28:10,200 Speaker 1: powers on the world. 537 00:28:12,880 --> 00:28:15,720 Speaker 2: That was Israel's Prime Minister benjaminette Nia, who's speaking with 538 00:28:15,840 --> 00:28:18,560 Speaker 2: us this past Sunday. Let's keep the conversation on AI 539 00:28:18,640 --> 00:28:20,760 Speaker 2: going in today's VC Spotlight. 540 00:28:20,840 --> 00:28:21,879 Speaker 5: Joining us this Monday. 541 00:28:21,920 --> 00:28:26,320 Speaker 2: Sarahwuile, founder of Conviction, early stage venture capital firm focus 542 00:28:26,359 --> 00:28:28,840 Speaker 2: heavily on AI and software three point zero. 543 00:28:29,080 --> 00:28:30,880 Speaker 5: Sarah, of course, a former partner. 544 00:28:30,520 --> 00:28:34,480 Speaker 2: At Greylock, described as quote overly direct, and also the 545 00:28:34,520 --> 00:28:37,159 Speaker 2: co host of the No Priors podcast. Welcome back to 546 00:28:37,200 --> 00:28:40,480 Speaker 2: Bloomberg Technology, Sarah. 547 00:28:39,840 --> 00:28:41,360 Speaker 8: Good to see you, Ed, Thanks for having me. 548 00:28:42,160 --> 00:28:43,800 Speaker 2: So, I want to start on a data point that 549 00:28:43,880 --> 00:28:45,800 Speaker 2: we've been going over a little bit on the show 550 00:28:45,960 --> 00:28:48,480 Speaker 2: this past couple of weeks. In the first quarter of 551 00:28:48,520 --> 00:28:52,800 Speaker 2: the year, at least almost half of venture backing for 552 00:28:52,840 --> 00:28:55,760 Speaker 2: AI startups went to startups here in the city of 553 00:28:55,760 --> 00:29:01,080 Speaker 2: San Francisco. Do you recognize that as being a genuine trend, 554 00:29:01,720 --> 00:29:04,280 Speaker 2: the concentration of AI talent here in the city. 555 00:29:06,280 --> 00:29:06,720 Speaker 4: Yeah. 556 00:29:06,960 --> 00:29:09,800 Speaker 15: I think it's a reflection of how early we are 557 00:29:10,040 --> 00:29:14,440 Speaker 15: in this market. There is great engineering and entrepreneurial talent 558 00:29:14,520 --> 00:29:17,320 Speaker 15: all around the world. I've been on the boards of startups, 559 00:29:17,720 --> 00:29:21,880 Speaker 15: you know, with Israeli founders, European founders, all around the 560 00:29:21,960 --> 00:29:25,840 Speaker 15: United States. But at this particular moment, AI and this 561 00:29:26,000 --> 00:29:28,960 Speaker 15: generation of it is very early, and a lot of 562 00:29:28,960 --> 00:29:31,000 Speaker 15: the talent that was sort of working on the frontier 563 00:29:31,000 --> 00:29:35,320 Speaker 15: of this technology was focused in a few large research labs, 564 00:29:35,680 --> 00:29:39,360 Speaker 15: and those labs were staffed. 565 00:29:38,880 --> 00:29:41,240 Speaker 8: In San Francisco and London mainly. 566 00:29:41,400 --> 00:29:44,720 Speaker 15: So I do think that, you know, the AI boom 567 00:29:44,800 --> 00:29:50,280 Speaker 15: has benefited from that research talent and is partly also 568 00:29:50,360 --> 00:29:52,440 Speaker 15: to do with sort of the renaissance of San Francisco. 569 00:29:53,720 --> 00:29:56,320 Speaker 2: I asked you that because you and I've spent time 570 00:29:56,360 --> 00:29:59,720 Speaker 2: together in your offices. You know, you launch Conviction and 571 00:29:59,760 --> 00:30:02,760 Speaker 2: you open the physical office space that since last we spoke, 572 00:30:02,840 --> 00:30:09,120 Speaker 2: you also launched conviction ebed, essentially an accelerator for AI startups. 573 00:30:09,760 --> 00:30:11,760 Speaker 2: Tell me about that, what prompted the move. 574 00:30:13,840 --> 00:30:16,560 Speaker 8: So we think this is a unique moment in time. 575 00:30:16,800 --> 00:30:19,960 Speaker 15: As we were just talking about, this is a very 576 00:30:20,000 --> 00:30:23,240 Speaker 15: early stage of the AI market, and we want to 577 00:30:23,320 --> 00:30:27,680 Speaker 15: bring people together at this frontier of technology is we 578 00:30:27,720 --> 00:30:30,680 Speaker 15: think they are solving a lot of new problems, and 579 00:30:30,720 --> 00:30:33,800 Speaker 15: some of those problems are very common, right, And so 580 00:30:33,880 --> 00:30:38,160 Speaker 15: an example might be hardware and infrastructure is hard again 581 00:30:38,200 --> 00:30:41,400 Speaker 15: for startups thank to the thanks to the cloud players, 582 00:30:41,720 --> 00:30:45,040 Speaker 15: they haven't been hard for most startups for a long time. 583 00:30:45,520 --> 00:30:48,960 Speaker 15: But if you are a company that needs to train 584 00:30:49,120 --> 00:30:52,360 Speaker 15: or serve your own models, that's very challenging, right. And 585 00:30:53,360 --> 00:30:56,680 Speaker 15: so you know, people talk about the AI GPU crunch, 586 00:30:57,760 --> 00:30:59,640 Speaker 15: and so one of the things that we were really 587 00:30:59,720 --> 00:31:04,120 Speaker 15: trying to do is focus on the set of challenges 588 00:31:04,240 --> 00:31:07,760 Speaker 15: that AI native companies face, bring people together who want 589 00:31:07,800 --> 00:31:10,200 Speaker 15: to work at the vanguard, and then also make it 590 00:31:10,280 --> 00:31:14,160 Speaker 15: possible for companies to experiment, right. And so we're giving 591 00:31:14,160 --> 00:31:17,000 Speaker 15: people enough capital to get going one hundred and fifty 592 00:31:17,000 --> 00:31:19,880 Speaker 15: thousand dollars on very friendly terms, and then partnering with 593 00:31:20,000 --> 00:31:23,280 Speaker 15: Microsoft Open AI and Thropic and base Time in order 594 00:31:23,320 --> 00:31:25,960 Speaker 15: to sort of make it possible for people to experiment 595 00:31:26,040 --> 00:31:28,960 Speaker 15: as well from the hardware side. And so I think 596 00:31:29,000 --> 00:31:31,000 Speaker 15: it's in part because we think this is a really 597 00:31:31,000 --> 00:31:33,240 Speaker 15: special moment in time we want to bring together some 598 00:31:33,320 --> 00:31:35,680 Speaker 15: of that vanguard community, and in part because we think 599 00:31:35,680 --> 00:31:39,040 Speaker 15: we can bring our network together and people will solve 600 00:31:39,120 --> 00:31:40,120 Speaker 15: unique problems together. 601 00:31:40,160 --> 00:31:41,360 Speaker 8: So today's actually the last. 602 00:31:41,240 --> 00:31:43,880 Speaker 15: Day of application. So AI entrepreneurs, I hope you'll apply. 603 00:31:45,240 --> 00:31:46,920 Speaker 2: Well, let let's linger on that for a moment. Then 604 00:31:47,000 --> 00:31:49,440 Speaker 2: what is it that you're looking for? You know, if 605 00:31:49,520 --> 00:31:51,320 Speaker 2: you are going to get a new wave of applicants 606 00:31:51,360 --> 00:31:54,400 Speaker 2: that are watching Bloomberg Technology right now, how do they 607 00:31:54,480 --> 00:31:58,160 Speaker 2: set themselves apart? What is it you're seeking to on Earth? 608 00:31:59,760 --> 00:32:02,640 Speaker 15: Yeah, I think the fundamental thing that we are looking 609 00:32:02,680 --> 00:32:06,880 Speaker 15: for with any entrepreneur, besides the core entrepreneurial traits of 610 00:32:06,960 --> 00:32:12,600 Speaker 15: you know, grit, the enthusiasm and deep understanding of a 611 00:32:12,640 --> 00:32:19,320 Speaker 15: particular problem space, is actually experimentation today, like openness to 612 00:32:19,440 --> 00:32:22,400 Speaker 15: new ideas and new experiences, and I think a more 613 00:32:22,440 --> 00:32:27,080 Speaker 15: expansive view of the markets that can be disrupted with AI, 614 00:32:27,280 --> 00:32:29,640 Speaker 15: and then sort of deep understanding of how the research 615 00:32:29,680 --> 00:32:32,200 Speaker 15: and technology apply. I think one of the most exciting 616 00:32:32,280 --> 00:32:35,520 Speaker 15: things about the opportunity to us is the fact that 617 00:32:36,480 --> 00:32:39,200 Speaker 15: we don't look at the markets that are available to 618 00:32:39,360 --> 00:32:43,320 Speaker 15: AI is just traditional software companies. Like some of the 619 00:32:43,360 --> 00:32:46,560 Speaker 15: most interesting companies in AI today. And I'm biased because 620 00:32:46,600 --> 00:32:48,800 Speaker 15: these are some of our portfolio companies as well, but 621 00:32:49,560 --> 00:32:52,160 Speaker 15: you know, if you look at companies like Harvey in 622 00:32:52,240 --> 00:32:56,920 Speaker 15: the legal space or mid journey in the image generation space. 623 00:32:57,200 --> 00:33:02,560 Speaker 15: Those were not hotbeds for software in as verticals prior, right, 624 00:33:02,600 --> 00:33:05,600 Speaker 15: And so we're really excited about people who you know, 625 00:33:05,800 --> 00:33:09,200 Speaker 15: are experts in their domain and then also are thinking 626 00:33:09,240 --> 00:33:14,720 Speaker 15: creatively about these applications versus sort of just expecting that 627 00:33:14,760 --> 00:33:18,360 Speaker 15: these next generation of companies will be direct replacement for incumbents. 628 00:33:19,160 --> 00:33:21,520 Speaker 2: You know, convictions really focused on the early stage. But 629 00:33:21,640 --> 00:33:23,000 Speaker 2: you know, I know you and l Add on the 630 00:33:23,040 --> 00:33:26,640 Speaker 2: No Prize podcast have names from the world of AI 631 00:33:26,880 --> 00:33:29,800 Speaker 2: working at some of the biggest and most mature technology 632 00:33:29,800 --> 00:33:33,320 Speaker 2: companies to discuss some of the broad themes. What are 633 00:33:33,320 --> 00:33:38,560 Speaker 2: the advantages of focusing on young, early startups rather than 634 00:33:38,880 --> 00:33:42,280 Speaker 2: you know, there's more mature sometimes megacap tech names that 635 00:33:42,320 --> 00:33:45,200 Speaker 2: are still pumping money into into AI development. 636 00:33:47,040 --> 00:33:50,200 Speaker 15: Well, I'm sure there's an updated increased number for Q two, 637 00:33:50,520 --> 00:33:53,120 Speaker 15: but I think your viewers would definitely know in Q 638 00:33:53,240 --> 00:33:55,920 Speaker 15: one a fifth of the S and P five hundred 639 00:33:55,960 --> 00:33:58,920 Speaker 15: mentioned AI in their earnings calls, right, And so I 640 00:33:58,960 --> 00:34:03,040 Speaker 15: do think since these starting gun of last November, technologists 641 00:34:03,200 --> 00:34:07,040 Speaker 15: at companies of any scale recognize the opportunity and the risk, 642 00:34:08,000 --> 00:34:11,799 Speaker 15: and definitely some are benefiting from it, right. You know, 643 00:34:11,840 --> 00:34:16,320 Speaker 15: we see even in our mean alads, more advanced portfolios, 644 00:34:16,480 --> 00:34:21,200 Speaker 15: or even in public companies, there are founders and CEOs 645 00:34:21,320 --> 00:34:25,440 Speaker 15: who are taking advantage of the opportunity and motivating their 646 00:34:25,440 --> 00:34:29,480 Speaker 15: teams to work with more speed and velocity than they 647 00:34:29,520 --> 00:34:34,880 Speaker 15: ever have. Incumbents have always had the advantages of distribution, 648 00:34:35,320 --> 00:34:39,279 Speaker 15: like relationships with customers, and then like very you know, 649 00:34:39,480 --> 00:34:43,520 Speaker 15: large resources right engineering teams, access to infrastructure, for example. 650 00:34:44,000 --> 00:34:49,200 Speaker 15: But I think these times of massive disruption are actually 651 00:34:49,200 --> 00:34:52,640 Speaker 15: more advantage to startups. I think there's a lot of 652 00:34:52,680 --> 00:34:57,440 Speaker 15: discussion amongst investors about access to data to train and 653 00:34:57,480 --> 00:35:01,160 Speaker 15: fine tune models, but the data you want for model 654 00:35:01,239 --> 00:35:05,680 Speaker 15: fine tuning and training is actually very specific, and incumbents 655 00:35:05,719 --> 00:35:07,960 Speaker 15: often don't have it. So I think it's a you know, 656 00:35:08,000 --> 00:35:12,400 Speaker 15: it's a race like many other technology shifts, where startups 657 00:35:12,480 --> 00:35:15,320 Speaker 15: are trying to build the best product and build distribution 658 00:35:16,320 --> 00:35:19,319 Speaker 15: and incumbents have the distribution advantage and are trying to 659 00:35:19,320 --> 00:35:22,360 Speaker 15: figure out how quickly they can adapt to this new change. 660 00:35:23,520 --> 00:35:24,920 Speaker 5: Last October, you. 661 00:35:26,440 --> 00:35:30,000 Speaker 2: Came out and confirmed your first one hundred million dollar fund, 662 00:35:30,719 --> 00:35:33,120 Speaker 2: and you got going quite quickly, and we talked about 663 00:35:33,120 --> 00:35:35,880 Speaker 2: the physical space that you have the offices, but just 664 00:35:35,920 --> 00:35:38,840 Speaker 2: share with our audience, Sarah, what it's been like building 665 00:35:38,880 --> 00:35:41,640 Speaker 2: your own firm from scratch, where you've been able to 666 00:35:41,680 --> 00:35:44,600 Speaker 2: make progress quickly, what the challenges have been as well. 667 00:35:46,960 --> 00:35:48,840 Speaker 15: Yeah, I am reminded what it is like to be 668 00:35:48,840 --> 00:35:51,240 Speaker 15: a founder. It's a lot of work, I'll be honest, 669 00:35:51,360 --> 00:35:55,359 Speaker 15: but I'm really excited. I think the timing of our 670 00:35:55,440 --> 00:36:00,919 Speaker 15: fund launch was we launched a publicly last October and 671 00:36:01,320 --> 00:36:05,160 Speaker 15: chat GPT was released to the public in I think November, 672 00:36:05,640 --> 00:36:08,600 Speaker 15: and so I can't say I was not surprised by 673 00:36:09,200 --> 00:36:15,719 Speaker 15: how strong the consumer and enterprise reaction was to that, 674 00:36:16,040 --> 00:36:19,840 Speaker 15: where like, this is the race year to incorporate AI 675 00:36:19,960 --> 00:36:24,279 Speaker 15: into your existing products as an company, right, And so 676 00:36:24,719 --> 00:36:29,839 Speaker 15: I'm positively surprised by how many entrepreneurs and how much 677 00:36:29,840 --> 00:36:32,759 Speaker 15: great opportunity we are seeing. And I think, you know, 678 00:36:32,800 --> 00:36:35,920 Speaker 15: we have a I think we have a reputation for 679 00:36:36,320 --> 00:36:40,640 Speaker 15: domain expertise and network here and we want to go 680 00:36:40,719 --> 00:36:43,120 Speaker 15: work with some of the very best companies. I'm very 681 00:36:43,120 --> 00:36:47,279 Speaker 15: proud of the entrepreneurs already in the portfolio, but I'd 682 00:36:47,280 --> 00:36:49,560 Speaker 15: say the amount of opportunity is also a challenge, right, 683 00:36:49,600 --> 00:36:53,359 Speaker 15: We're hiring investors, and I think it will only grow 684 00:36:53,400 --> 00:36:57,000 Speaker 15: from here. So I'd say perhaps the challenges look a 685 00:36:57,000 --> 00:36:59,439 Speaker 15: little bit more like any scaling company that doesn't quite 686 00:36:59,480 --> 00:37:02,000 Speaker 15: have enough peace because its market has arrived quickly. 687 00:37:03,480 --> 00:37:05,640 Speaker 2: Sarah Grau, conviction is so great to have you back 688 00:37:05,640 --> 00:37:08,360 Speaker 2: on the program at I guess the digital coll face 689 00:37:08,760 --> 00:37:11,879 Speaker 2: of building a venture firm but also investing in new 690 00:37:11,920 --> 00:37:13,240 Speaker 2: companies in the field of AI. 691 00:37:13,480 --> 00:37:14,359 Speaker 5: Thank you very much. 692 00:37:22,800 --> 00:37:26,400 Speaker 2: As the iPhone fifteen debut approaches, Apple finally admitting the 693 00:37:26,440 --> 00:37:29,520 Speaker 2: industry is facing a smartphone slow down here in the US, 694 00:37:29,840 --> 00:37:32,680 Speaker 2: presents a challenge for the next iPhone, which promises to 695 00:37:32,719 --> 00:37:35,480 Speaker 2: be the biggest updates of the device in three years. 696 00:37:35,520 --> 00:37:38,480 Speaker 2: Here's one pac more Bloombos, Mark German and Mark you 697 00:37:38,520 --> 00:37:40,719 Speaker 2: wrote your power on over the weekend. Actually, some new 698 00:37:40,760 --> 00:37:45,480 Speaker 2: details about the timing of iPhone fifteen. We're expecting an event, 699 00:37:45,800 --> 00:37:47,680 Speaker 2: a launch. When do they take place. 700 00:37:49,040 --> 00:37:52,239 Speaker 16: I'm expecting Apple to announce the iPhone fifteen the week 701 00:37:52,280 --> 00:37:55,760 Speaker 16: after Labor Day, so either on Tuesday September twelfth or Wednesday, 702 00:37:55,800 --> 00:37:59,080 Speaker 16: September thirteenth. The phones will then go on pre order 703 00:37:59,320 --> 00:38:02,240 Speaker 16: that Friday, and then the week after the following Friday 704 00:38:02,280 --> 00:38:05,440 Speaker 16: on September twenty second, I expect the new models to 705 00:38:05,480 --> 00:38:09,279 Speaker 16: go on sale. Now, this is not necessarily groundbreaking, This 706 00:38:09,400 --> 00:38:13,920 Speaker 16: follows the cadence of typical Apple releases, but notably this 707 00:38:14,000 --> 00:38:17,359 Speaker 16: event is happening about a week later than last year, 708 00:38:17,400 --> 00:38:20,719 Speaker 16: but it's still within their normal timeframe of early September 709 00:38:21,200 --> 00:38:22,160 Speaker 16: to mid September. 710 00:38:24,160 --> 00:38:27,000 Speaker 2: The question, before we get to the comments from executives 711 00:38:27,000 --> 00:38:30,040 Speaker 2: about slow down is what is the iPhone fifteen going 712 00:38:30,080 --> 00:38:33,200 Speaker 2: to bring us? How is it different from prior generations 713 00:38:33,440 --> 00:38:35,000 Speaker 2: Based on your reporting. 714 00:38:36,080 --> 00:38:38,439 Speaker 16: Yeah, I think this iPhone fifteen launch is actually going 715 00:38:38,480 --> 00:38:40,960 Speaker 16: to be the most significant upgrade to the iPhone since 716 00:38:41,000 --> 00:38:44,440 Speaker 16: the iPhone twelve launched in twenty twenty. You know, typically 717 00:38:44,520 --> 00:38:47,440 Speaker 16: they've been doing bigger upgrades to the profhones the last 718 00:38:47,560 --> 00:38:50,720 Speaker 16: few years, and that will continue, but the baseline iPhone 719 00:38:50,760 --> 00:38:52,640 Speaker 16: fifteen will be a pretty nice update as well. So 720 00:38:52,680 --> 00:38:55,640 Speaker 16: I'll start with the cheaper bones. The fifteen will get 721 00:38:55,719 --> 00:38:58,640 Speaker 16: the same forty eight megapixel back camera that the fourteen 722 00:38:58,680 --> 00:39:01,160 Speaker 16: pro got last year, so a really big upgrade on 723 00:39:01,160 --> 00:39:03,520 Speaker 16: those lower end phones. And then they're going to move 724 00:39:03,560 --> 00:39:06,960 Speaker 16: from the notch to the dynamic island on the fifteen 725 00:39:07,000 --> 00:39:09,239 Speaker 16: and fifteen plus as well. So that's going to be 726 00:39:09,239 --> 00:39:11,640 Speaker 16: a nice improvement that people on the pro phones got 727 00:39:11,760 --> 00:39:14,839 Speaker 16: last year. Now moving onto the pro devices, there's going 728 00:39:14,880 --> 00:39:17,319 Speaker 16: to be an entirely new design. They're going to keep 729 00:39:17,320 --> 00:39:20,480 Speaker 16: that sort of matt frosted glass back, but around the 730 00:39:20,520 --> 00:39:22,360 Speaker 16: sides of the phone. The band that goes around the 731 00:39:22,360 --> 00:39:26,000 Speaker 16: phone right now with sort of that shiny fingerprint full 732 00:39:26,160 --> 00:39:29,840 Speaker 16: stainless steel band. Right that material is trying to titan 733 00:39:30,280 --> 00:39:32,640 Speaker 16: It's a brush titanium. It looks a bit nicer, a 734 00:39:32,640 --> 00:39:34,719 Speaker 16: bit more premium, but it also could make the phone 735 00:39:34,719 --> 00:39:37,600 Speaker 16: a bit lighter. There's also going to be a much 736 00:39:37,640 --> 00:39:39,240 Speaker 16: dinner border around the screen. 737 00:39:40,920 --> 00:39:41,239 Speaker 5: All right. 738 00:39:41,280 --> 00:39:43,920 Speaker 2: Bloomber is Martgum and check on power on these aecutives 739 00:39:43,960 --> 00:39:46,120 Speaker 2: saying two quarters of slow down in the US. Does 740 00:39:46,120 --> 00:39:49,080 Speaker 2: the iPhone fifteen change the trajectory that does it? To 741 00:39:49,120 --> 00:39:51,759 Speaker 2: this edition of Bloomberg Technology coming up in the next hour. 742 00:39:51,840 --> 00:39:54,439 Speaker 2: Kathe Wood of ARC joins the crew on the one 743 00:39:54,480 --> 00:39:56,319 Speaker 2: PM from San Francisco. 744 00:39:56,719 --> 00:39:58,040 Speaker 5: This is Bloomberg Technology