WEBVTT - JD Vance Bashes Europe, Musk Factories' Undocumented Workers 0:00:02.520 --> 0:00:09.240 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.280 --> 0:00:15.040 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.440 --> 0:00:20.720 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.600 --> 0:00:35.520 Live from New York. 0:00:35.600 --> 0:00:39.240 I'm Tim Stenoveek and I'm Jackie Devalas in San Francisco. 0:00:39.400 --> 0:00:43.440 This is Bloomberg Technology Now coming up. US President jd 0:00:43.640 --> 0:00:48.000 Vance blasts Europe, accusing the region's leaders of undermining democratic 0:00:48.080 --> 0:00:51.080 values and taking aim at the blocks attempt to regulate 0:00:51.120 --> 0:00:55.120 hate speech and misinformation in media online. Plus, we are 0:00:55.200 --> 0:00:58.160 joined by the CEO of Data bricks on the company's 0:00:58.200 --> 0:01:02.320 AI focused partnership with SAP and a look at Elon 0:01:02.440 --> 0:01:06.319 Musk's empire and how some of his companies hired undocumented 0:01:06.319 --> 0:01:09.680 workers to build factories. Let's also take a look at 0:01:09.720 --> 0:01:11.560 those shares of Meta they're up on the day and 0:01:11.600 --> 0:01:15.479 this as the company is pushing into augmented reality NAI 0:01:15.760 --> 0:01:20.920 and has identified its next big bet, AI powered humanoid robots. 0:01:21.000 --> 0:01:23.000 Let's get more on this with Bloomberg's Mark. 0:01:22.800 --> 0:01:24.360 German, who joins us now. 0:01:24.680 --> 0:01:28.080 Mark, humanoid robots sound like something out of a sci 0:01:28.080 --> 0:01:31.280 fi movie. What is Meta's vision for this venture? Here 0:01:31.319 --> 0:01:32.880 and how much are they spending to do it? 0:01:34.240 --> 0:01:37.840 So Meta wants to own this still nascent humanoid market. Right, 0:01:37.880 --> 0:01:40.440 These are home robots that can do chores for you, 0:01:40.480 --> 0:01:43.360 maybe fold laundry, carry a glass of water, bring something 0:01:43.400 --> 0:01:45.880 for you up the stairs. You've seen Tesla get into 0:01:45.880 --> 0:01:49.200 this game with optimists, We've seen Boston Dynamics with Spot. 0:01:49.600 --> 0:01:52.280 Other companies like Apple and Google Deep Mind or making 0:01:52.280 --> 0:01:55.440 investments here. But Meta wants to be the android or 0:01:55.520 --> 0:01:59.800 qualcom of the humanoid industry, empower the underpinnings, the software, 0:01:59.840 --> 0:02:03.520 the hardware, the artificial intelligence, the sensor stacked the compute 0:02:03.760 --> 0:02:06.440 for the whole industry. So they're talking to several partners, 0:02:06.480 --> 0:02:10.040 including Unitry. They're talking to a company called Figure Ai, 0:02:10.800 --> 0:02:13.240 and they want to power this. And today they're starting 0:02:13.280 --> 0:02:16.360 up a new division run by the former CEO of 0:02:16.840 --> 0:02:19.600 GM's Crews, Mark Whitten. They're going to hire about one 0:02:19.680 --> 0:02:23.240 hundred people for their robotics field and their plan is 0:02:23.280 --> 0:02:25.840 to try to own this market and eventually maybe even 0:02:25.840 --> 0:02:27.320 make a humanoid robot of their own. 0:02:27.760 --> 0:02:30.680 Mark is the idea here that they make money on 0:02:31.240 --> 0:02:34.760 the hardware, the software. At the end of the day, 0:02:34.800 --> 0:02:36.799 how is this a company How does this help the 0:02:36.840 --> 0:02:39.040 company make more money selling US ads? 0:02:40.280 --> 0:02:43.200 I mean, Meta is investing billions of dollars in artificial 0:02:43.200 --> 0:02:47.040 intelligence and augmented reality, and those are two core technologies 0:02:47.200 --> 0:02:51.040 that are also useful in humanoid robots. Right, this technology 0:02:51.160 --> 0:02:54.239 could be applied to humanoids. They're spending sixty five billion 0:02:54.280 --> 0:02:57.240 dollar on R and D investments across twenty twenty five, 0:02:57.480 --> 0:03:00.120 so a portion of that will now go to humanoid robots. 0:03:00.160 --> 0:03:02.239 And how they can make money from this one day 0:03:02.320 --> 0:03:05.600 obviously is selling it to consumers, but sooner they can 0:03:05.639 --> 0:03:08.720 make money on becoming the platform right and licensing their 0:03:08.760 --> 0:03:12.480 technology parts of it open source to third party partners. 0:03:12.560 --> 0:03:12.680 Right. 0:03:12.760 --> 0:03:15.760 Meta believes that the hardware stacks are pretty well done 0:03:15.840 --> 0:03:18.320 right now by the third party humanoid manufacturers. 0:03:18.680 --> 0:03:18.840 Right. 0:03:18.840 --> 0:03:21.919 Where they see a step down is in the AI 0:03:22.000 --> 0:03:24.160 and the software, and they believe with Loma they can. 0:03:24.200 --> 0:03:24.959 Fill that gap. 0:03:26.040 --> 0:03:26.280 Mark. 0:03:26.400 --> 0:03:29.760 What has the company learned from its reality labs, prior 0:03:29.880 --> 0:03:32.840 ventures and headsets for example? What does it plan to 0:03:32.880 --> 0:03:35.120 do differently this time around with humanoid robots? 0:03:36.120 --> 0:03:37.960 Well, I don't think they're going to do much differently 0:03:38.040 --> 0:03:39.960 right other than I think they're starting to hire a 0:03:40.000 --> 0:03:43.320 little bit more slowly than they have with the augmented 0:03:43.320 --> 0:03:45.080 reality metaverse push. 0:03:45.160 --> 0:03:45.320 Right. 0:03:45.360 --> 0:03:47.680 So they're hiring about one hundred people this year, right, 0:03:47.680 --> 0:03:49.720 That seems like small potatoes compared to the number of 0:03:49.720 --> 0:03:52.080 people they hired at the height of COVID, at the 0:03:52.080 --> 0:03:54.520 height of building out the metaverse and mixed reality. 0:03:54.720 --> 0:03:54.840 Right. 0:03:54.880 --> 0:03:56.480 So they're going to go a little bit more slowly here, 0:03:56.600 --> 0:03:59.360 maybe invest a little bit less money at the get go, 0:03:59.680 --> 0:04:01.440 but I think their ambition is still the same. 0:04:01.680 --> 0:04:02.640 What is that, Moonshaw? 0:04:02.800 --> 0:04:04.760 What is that long term area that we can own 0:04:04.800 --> 0:04:05.400 as a company. 0:04:06.120 --> 0:04:09.120 Bloomberg's Mark German and joining us out there in Los Angeles. Mark, 0:04:09.120 --> 0:04:11.640 always good to see you. Congratulations on this scoop as 0:04:11.680 --> 0:04:14.720 well well. Earlier today we heard from Vice President JD 0:04:14.840 --> 0:04:17.359 Vance who spoke at the Munich Security Conference. Take a 0:04:17.360 --> 0:04:18.640 listen to what he had to say. 0:04:19.320 --> 0:04:21.960 The threat that I worry the most about visa the 0:04:22.120 --> 0:04:25.599 Europe is not Russia, it's not China, it's not any 0:04:25.600 --> 0:04:26.920 other external actor. 0:04:27.600 --> 0:04:29.239 And what I worry about is. 0:04:29.080 --> 0:04:34.240 The threat from within the retreat of Europe from some 0:04:34.320 --> 0:04:37.599 of its most fundamental values, values shared with the United 0:04:37.640 --> 0:04:39.440 States of America. 0:04:39.640 --> 0:04:42.600 Van's called out Europe's regulation of big tech, saying it's 0:04:42.720 --> 0:04:46.240 out of control and harming free speech. Van cited incidents 0:04:46.240 --> 0:04:48.599 from Germany to Sweden to the UK of what might 0:04:48.640 --> 0:04:52.000 be called woke policies as evidence of how Europe has 0:04:52.040 --> 0:04:55.359 lost its way. Bloomberg's Mike Shepherd joins us now to 0:04:55.560 --> 0:04:58.279 discuss Mike, how did this message? How did this speech 0:04:58.400 --> 0:04:59.840 land with the audience in Munich? 0:05:00.720 --> 0:05:03.680 Well, it, Philip with flat because when you consider the 0:05:03.680 --> 0:05:07.159 context of the Munich Security Conference, you have to think 0:05:07.160 --> 0:05:10.880 about what's happened earlier this week we saw JD. Vance's boss, 0:05:10.880 --> 0:05:15.440 President Donald Trump make this sudden outreach to Vladimir Putin 0:05:15.480 --> 0:05:18.320 and Russia to try to negotiate an end to the 0:05:18.440 --> 0:05:21.320 Ukraine War. And Ukraine really did not come up very 0:05:21.400 --> 0:05:24.440 much in the speech at all from Vance, and overall 0:05:24.520 --> 0:05:27.800 it was an elbows out address. He began his remarks 0:05:27.800 --> 0:05:31.120 by saying basically that there is a new sheriff in town, 0:05:31.520 --> 0:05:34.320 and he really tried to suggest that Europe need to 0:05:34.440 --> 0:05:38.440 fall much more into line with his and Donald Trump's 0:05:38.440 --> 0:05:42.200 brand of politics, especially when it comes to the tech 0:05:42.240 --> 0:05:47.159 industry and regulation of online content and regulation of AI. 0:05:47.600 --> 0:05:50.680 There's a thread between the remarks we heard today in 0:05:50.800 --> 0:05:54.040 Munich and what he said earlier this week in Paris 0:05:54.080 --> 0:05:58.400 where he addressed the artificial intelligence summit convened by French 0:05:58.440 --> 0:06:03.320 President Manuel mccrom. The idea from Vance there was to 0:06:03.360 --> 0:06:06.680 talk about overregulation of that sector too and say that 0:06:06.680 --> 0:06:09.479 that is stifling innovation. But again he also brought up 0:06:09.520 --> 0:06:13.840 this whole question of moderation and the risk of censorship 0:06:14.200 --> 0:06:15.640 through artificial intelligence. 0:06:16.839 --> 0:06:20.200 Mike Vice President Vance also seemed to suggest that the 0:06:20.240 --> 0:06:24.839 annulment of the Romanian election in December was somehow uncalled for, 0:06:25.080 --> 0:06:28.480 despite that there was evidence of Russian interference. 0:06:28.640 --> 0:06:30.880 How did those commons land well? 0:06:30.880 --> 0:06:35.080 Again, this is another remark that he made during his appearance. 0:06:35.120 --> 0:06:37.800 It really did not sit well with the audience, especially 0:06:37.839 --> 0:06:42.119 the Romanian delegation. There's ample evidence that Russia had tried 0:06:42.200 --> 0:06:45.760 to interfere with the results, which led to a far 0:06:45.880 --> 0:06:51.400 right candidate pulling off a surprising victory. And the concern 0:06:51.440 --> 0:06:55.520 about Russian interference with and tampering with domestic affairs of 0:06:55.560 --> 0:07:00.640 its closest neighbors is a constant concerning that we have 0:07:00.720 --> 0:07:04.760 heard from Baltic officials that we have interviewed. You know, 0:07:04.800 --> 0:07:09.200 I've spoken with the foreign ministers of Lithuania and Latvia 0:07:09.279 --> 0:07:11.400 in the past year, and this is something very much 0:07:11.560 --> 0:07:15.440 at top of mind, and they recognize the risk of 0:07:15.480 --> 0:07:19.520 these kinds of interference operations. And it is a sensitive 0:07:19.560 --> 0:07:22.800 point for Vance and the Republican Party too because dating 0:07:22.840 --> 0:07:26.760 back to twenty sixteen, we saw Donald Trump's election somehow 0:07:26.840 --> 0:07:31.080 tied to a Russian interference operation here as well. So 0:07:31.160 --> 0:07:34.280 this is something he is trying to diminish. And don't forget, 0:07:34.400 --> 0:07:37.120 Jade Vance is not just aiming this speech at the 0:07:37.200 --> 0:07:40.880 audience Erah Munich. He has an audience back here in 0:07:40.920 --> 0:07:43.160 the US that he's trying to satisfy, and that is 0:07:43.720 --> 0:07:46.240 his allies, Donald Trump's allies, and they are looking for 0:07:46.320 --> 0:07:50.800 him to have this really strong approach towards Europe. And 0:07:51.080 --> 0:07:53.880 even if the speech didn't land well in the room there, 0:07:53.960 --> 0:07:57.560 it very likely landed well with allies here who want 0:07:57.600 --> 0:08:01.200 to see JD. Vance take this forceful role in propelling 0:08:01.640 --> 0:08:04.360 the maga politics of Donald Trump for the future. 0:08:05.360 --> 0:08:16.640 That's Bloomberg's Mike Shephard, appreciate you joining us. Shares of 0:08:16.680 --> 0:08:20.480 Airbnb are surging today as the company posted an upbeat 0:08:20.600 --> 0:08:23.040 forecast for the first three months of twenty twenty five, 0:08:23.880 --> 0:08:28.000 citing continued strong demand following its holiday strength. 0:08:28.080 --> 0:08:30.680 Now for more, Bloomberg's Natalie Lung joins us. 0:08:30.720 --> 0:08:35.280 Now, Natalie, help us understand this because gigagonomy, peers, Lift 0:08:35.320 --> 0:08:39.559 and Uber issued more muted forecasts. But what's driving Airbnb's 0:08:39.679 --> 0:08:40.520 optimism here? 0:08:41.640 --> 0:08:43.880 Yeah, they had a very good fourth quarter during the 0:08:43.920 --> 0:08:48.080 holiday season where US airline carriers as well as online 0:08:48.080 --> 0:08:53.160 travel peer Expedia also talked about, you know, strong international 0:08:53.240 --> 0:08:57.960 travel and in particular, airbnbsaw acceleration of growth in all 0:08:58.000 --> 0:09:01.320 of the regions that's operating in, including the US, where 0:09:01.520 --> 0:09:03.880 there was some slowing demand last year, but it seems 0:09:03.920 --> 0:09:07.800 like it's really back in the later part of the year. 0:09:08.200 --> 0:09:08.520 Natalie. 0:09:08.520 --> 0:09:11.800 What's going on with the company's experience as part of 0:09:11.840 --> 0:09:15.040 the business and the investment that they talked about happening there? 0:09:15.880 --> 0:09:18.040 Yeah, the company told us that they're going to be 0:09:18.040 --> 0:09:20.800 spending two hundred million to a two hundred and fifty 0:09:20.880 --> 0:09:25.080 million this year into new initiatives, including the relaunch of experiences. 0:09:25.600 --> 0:09:28.079 The CEO talked a bit about how in the past 0:09:28.080 --> 0:09:31.480 when they launched it, maybe havn't cross marketed products enough. 0:09:31.520 --> 0:09:34.760 So let's say, when you're staying in staying in a 0:09:34.760 --> 0:09:38.280 particular city that they don't push or promote their related 0:09:38.320 --> 0:09:41.640 experience as much, and so the relaunch will be better 0:09:41.679 --> 0:09:41.920 at that. 0:09:42.559 --> 0:09:45.280 All right, Bloomberg's Natalie Lung, thanks so much for joining 0:09:45.320 --> 0:09:48.760 us on Airbnb surging. Let's bring in Tiffany Wade, senior 0:09:48.760 --> 0:09:52.280 portfolio manager at Columbia Threadnil Investments. They've got about six 0:09:52.360 --> 0:09:56.160 hundred and forty five billion dollars in assets under management. Tiffany, 0:09:56.200 --> 0:09:58.679 I want to start with Palo Alto Networks and get 0:09:58.679 --> 0:10:00.680 your thoughts there, because we're seeing shares on a little 0:10:00.720 --> 0:10:03.600 more than four percent as we speak. The company did 0:10:03.720 --> 0:10:07.439 report disappointing earnings outlook, but for To net and Checkpoint 0:10:07.679 --> 0:10:10.959 posted strong results. What's going on with Palo Alto. 0:10:12.800 --> 0:10:15.600 I think across the cybersecurity space we are seeing pretty 0:10:15.640 --> 0:10:19.280 strong trends. The last couple of quarters, we saw some 0:10:19.360 --> 0:10:22.520 customer rationalization of spending. I think we're seeing that coming 0:10:22.600 --> 0:10:25.160 to an end, and we're starting to see sales growth 0:10:25.200 --> 0:10:29.160 pick up again. Palo Alto obviously down today, for the 0:10:29.160 --> 0:10:31.719 most part, the metrics were pretty good that they reported 0:10:32.320 --> 0:10:35.840 some of the key metrics that custo that investors look at, 0:10:36.120 --> 0:10:39.040 recurring revenue was very strong in the quarter, and they 0:10:39.080 --> 0:10:42.880 beat numbers for the most recent quarter that they provided. However, 0:10:42.960 --> 0:10:44.959 free cash flow guidance looks like it's a little bit 0:10:45.080 --> 0:10:47.160 second half loaded for the year, which I think is 0:10:48.080 --> 0:10:51.240 disappointing some people. But I would say I think the 0:10:51.280 --> 0:10:53.960 other important thing that we're positive on is that over 0:10:53.960 --> 0:10:57.640 the last couple of quarters, Palo Alto was adopted a 0:10:57.720 --> 0:11:00.680 platform approach to product sales, which seems to be resonating 0:11:00.720 --> 0:11:02.640 with customers, and I think we saw more evidence of 0:11:02.640 --> 0:11:06.680 that this quarter, and this helps customers consolidate spending, which 0:11:06.720 --> 0:11:08.320 is a trend that we've seen for the last couple 0:11:08.360 --> 0:11:11.319 of quarters. But I also think for the longer term, 0:11:11.640 --> 0:11:14.480 the trend of increasing cyber threats is not slowing down, 0:11:14.920 --> 0:11:17.240 and Palo Alto will play an important role in helping 0:11:17.400 --> 0:11:20.720 their companies and their customers secure their data and also 0:11:20.760 --> 0:11:24.439 their AI models, because we are seeing companies face traditional 0:11:24.480 --> 0:11:28.680 security threats such as data breaches, but new threats driven 0:11:28.720 --> 0:11:33.679 by AI, such as more sophisticated threats or enhanced security 0:11:33.679 --> 0:11:38.200 threats that are designed to disrupt output for an AI model. 0:11:39.120 --> 0:11:42.600 Tiffany, let's stick with AI in particular, some of the 0:11:42.640 --> 0:11:47.600 big tech giants that have made some pretty wide comments 0:11:47.640 --> 0:11:52.439 about infrastructure, R and D talent investments. How discerning our 0:11:52.480 --> 0:11:55.440 investors when it comes to this kind of spend. Do 0:11:55.480 --> 0:11:58.600 they care where it's going, especially now off the news 0:11:58.640 --> 0:12:01.840 that Meta is building a humanoid robot, which is surely 0:12:01.920 --> 0:12:04.319 to take quite a bit of investment there. 0:12:05.960 --> 0:12:09.160 Yeah, I think investors are definitely keeping a very close 0:12:09.200 --> 0:12:12.480 eye on the amount of spending that the large companies 0:12:12.520 --> 0:12:16.360 like the hyperscalers are putting into AI, and over the 0:12:16.360 --> 0:12:18.360 course of the next couple quarters, we're going to want 0:12:18.400 --> 0:12:23.120 to see returns on those investments. For the cloud providers, specifically, 0:12:23.120 --> 0:12:26.400 they're spending a significant amount of CAPEX in investing in 0:12:26.480 --> 0:12:30.080 AI processing capacity. I think in order to stay ahead 0:12:30.080 --> 0:12:34.280 of trends. Amazon's CEO Jeff Bezos said recently that he 0:12:34.400 --> 0:12:36.680 thinks that we'll see a world where virtually every app 0:12:36.720 --> 0:12:39.160 has generative AI in it, and they need to invest 0:12:39.200 --> 0:12:42.120 to stay ahead of this. So the cloud providers are 0:12:42.120 --> 0:12:46.160 offering a variety of AI models which are pre trained 0:12:46.200 --> 0:12:49.200 for use cases, but they also help customers tune a 0:12:49.200 --> 0:12:52.920 model or adapted to specific needs. And they're also offering 0:12:52.960 --> 0:12:56.720 tools and services like secure data storage and data management 0:12:57.120 --> 0:12:59.679 that make it easier for their customers to handle the 0:12:59.760 --> 0:13:02.320 large data sets required for AI models. 0:13:02.840 --> 0:13:03.720 And I think that all. 0:13:03.640 --> 0:13:07.160 Of these services should see additional demand with faster adoption 0:13:07.360 --> 0:13:10.040 of AI. And I think what we'll see is these 0:13:10.080 --> 0:13:13.000 companies are becoming kind of the toll roads for AI, 0:13:13.040 --> 0:13:17.360 where they're supplying the cloud, the tools some of the developers, 0:13:17.440 --> 0:13:21.080 and the processing capacity that their customers need to enable 0:13:21.120 --> 0:13:23.360 other companies to develop and deploy AI. 0:13:24.440 --> 0:13:27.080 We've also seen some comments coming from Washington that the 0:13:27.120 --> 0:13:30.280 government plans to be more supportive when it comes to 0:13:30.320 --> 0:13:34.439 investments in artificial intelligence. How much of that initial enthusiasm 0:13:34.440 --> 0:13:38.080 from President Trump's Stargate venture being announced has worn off 0:13:38.080 --> 0:13:38.520 by now? 0:13:40.760 --> 0:13:44.000 I think that that's probably the Stargate venture is a 0:13:44.040 --> 0:13:46.640 flashy announcement, but I think it's more of the same 0:13:46.679 --> 0:13:49.240 of what we're seeing. There was already a significant amount 0:13:49.280 --> 0:13:55.400 of capital investment going into infrastructure spending. Formalizing announcements with 0:13:55.520 --> 0:13:59.680 multiple companies investing is a great news story, and maybe 0:14:00.400 --> 0:14:01.840 some of the spending, but I think a lot of 0:14:01.840 --> 0:14:04.080 the spending was going to happen anyways over the next 0:14:04.080 --> 0:14:06.280 three to four years and over the next decade. 0:14:06.640 --> 0:14:10.560 Are you not at all concerned about CAPEX spending from 0:14:10.600 --> 0:14:15.120 the hyperscalers from any members of the mag seven being 0:14:15.160 --> 0:14:16.600 too much? Are you overspending? 0:14:18.360 --> 0:14:20.680 I don't think they're overspending right now. A lot of 0:14:20.680 --> 0:14:23.520 the spending from the mag seven companies is going to 0:14:23.560 --> 0:14:26.480 their own use cases where they're actually seeing a return 0:14:26.520 --> 0:14:30.560 on those investments in terms of better advertising models or 0:14:30.720 --> 0:14:34.920 better offerings to customers. But a lot of the spending 0:14:35.000 --> 0:14:37.920 is also going to support their customers who are trying 0:14:37.920 --> 0:14:41.400 to develop AI tools that they're going to sell in 0:14:41.440 --> 0:14:44.320 the future. So I don't think that the I wouldn't 0:14:44.320 --> 0:14:47.400 call it overspending at this point. And I do think 0:14:47.480 --> 0:14:50.440 that the adoption curve for AI is probably going to 0:14:50.480 --> 0:14:53.080 pick up very significantly from here, as we do see 0:14:53.120 --> 0:14:57.040 costs coming down very significantly, and that's going to fuel 0:14:57.080 --> 0:15:00.000 more demand for the services that the cloud providers are 0:15:00.040 --> 0:15:00.640 are providing. 0:15:00.880 --> 0:15:02.720 Well, speaking of costs coming down, the news that we 0:15:02.800 --> 0:15:05.080 got from deep Seek a little over two weeks ago 0:15:05.160 --> 0:15:08.080 or three weeks ago at this point, does that mean that, 0:15:08.440 --> 0:15:13.680 indeed these companies have become more efficient when they're training ms, 0:15:13.800 --> 0:15:16.320 for example, that they won't need all the CAPEX that's 0:15:16.320 --> 0:15:16.960 been invested. 0:15:18.680 --> 0:15:21.280 That's definitely a concern in the market, and you saw 0:15:21.280 --> 0:15:23.680 that in the Monday after the deep Seek R one 0:15:23.760 --> 0:15:29.080 model announcement. I don't think that we're going to I 0:15:29.120 --> 0:15:32.160 think what we're seeing is that the deep Seak announcement 0:15:32.240 --> 0:15:37.520 was really highlighted the efficiency of model development already. So 0:15:37.840 --> 0:15:41.680 costs for model development from the established US players like 0:15:41.720 --> 0:15:44.760 open ai or Anthropic have been coming down almost as 0:15:44.840 --> 0:15:48.440 quickly as we saw in the deep Seek model. So 0:15:48.480 --> 0:15:51.640 I think it's really highlighted how efficient the models are becoming, 0:15:51.720 --> 0:15:56.320 how fast the technology improvement is. And if we need 0:15:56.400 --> 0:16:03.520 less processing power per computation or for inferencing instance, I 0:16:03.560 --> 0:16:06.720 don't think that that leads to a lesser demand for 0:16:06.800 --> 0:16:09.880 processing capacity. I think that means the adoption picks up faster. 0:16:11.080 --> 0:16:12.160 So if you think. 0:16:12.000 --> 0:16:16.560 About the adoption of cell phones, as they got cheaper, 0:16:16.720 --> 0:16:19.920 more people bought them, you didn't end up needing to 0:16:19.960 --> 0:16:20.840 make less cell phones. 0:16:21.760 --> 0:16:25.120 That's Tiffani Wade from Columbia Thread Needle Investments, thanks for 0:16:25.200 --> 0:16:25.760 joining us. 0:16:26.240 --> 0:16:27.160 Coming up will be. 0:16:27.200 --> 0:16:30.240 Joined by the CEO of AI startup Times on their 0:16:30.280 --> 0:16:33.960 big funding round. We're also watching shares of draft kings 0:16:34.200 --> 0:16:37.800 this as the Boston based company reported fourth quarter earnings 0:16:37.840 --> 0:16:41.800 that eat expectations. Also boosted its sales guidance for the 0:16:41.840 --> 0:16:45.240 current year to at least six point three billion dollars, 0:16:45.600 --> 0:16:48.720 in the sign that the company is overcoming concerns about 0:16:48.720 --> 0:16:52.600 a tough market for sports betting operators. This is Bloomberg 0:17:10.400 --> 0:17:13.560 on today's AI and Action. We're looking at AI software 0:17:13.640 --> 0:17:17.400 startup times. After Goldman Sachs Growth Equity Union led at 0:17:17.400 --> 0:17:20.600 one hundred and twenty five million dollar funding round for 0:17:20.640 --> 0:17:23.919 the company at one point three billion one point one 0:17:23.920 --> 0:17:26.960 to three billion dollar valuation. Let's bring in CEO Owen 0:17:27.200 --> 0:17:31.320 Henshee Owen, Welcome to the Unicorn club. How does it 0:17:31.359 --> 0:17:34.320 feel to finally reach this smilestone and how do you 0:17:34.359 --> 0:17:35.640 plan to put this money. 0:17:35.440 --> 0:17:38.840 To use f person foremost, Jackie, thank you for having me. 0:17:38.840 --> 0:17:42.400 Happy Valentine's Day. Yeah, it's a great question. We're really 0:17:42.480 --> 0:17:45.720 proud and excited to have raised this capital. I think 0:17:45.760 --> 0:17:48.880 where you'll see us invest is in the areas where 0:17:48.880 --> 0:17:51.960 we've seen kind of outsized traction over the last eighteen months. 0:17:52.280 --> 0:17:54.280 So as a startup, we've been around for about seven 0:17:54.359 --> 0:17:56.240 years now. What it's really in the last kind of 0:17:56.280 --> 0:17:59.480 eighteen months where we've experienced a lot of accelerated growth 0:18:00.200 --> 0:18:03.480 as we brought these new AI capabilities to our customers. 0:18:03.800 --> 0:18:05.879 And so we'll continue to invest in R and D. 0:18:06.119 --> 0:18:09.040 We'll hire about one hundred people this year and that 0:18:09.040 --> 0:18:11.199 will be all to support the growth and demand that 0:18:11.240 --> 0:18:15.200 we're seeing. We're now doing about a billion automated actions 0:18:15.400 --> 0:18:18.399 on behalf of our customers every single week, and we 0:18:18.480 --> 0:18:20.760 expect that growth to accelerate if anything. 0:18:21.200 --> 0:18:23.080 Oh and as Jackie mentioned, one hundred and twenty five 0:18:23.119 --> 0:18:26.639 million dollar funding round, it increases the valuation by eighty percent, 0:18:26.800 --> 0:18:30.880 so certainly a big round when it comes to your company. 0:18:31.200 --> 0:18:33.240 I'm trying to get an understanding for how difficult it 0:18:33.359 --> 0:18:35.560 was to raise money in this environment. How long did 0:18:35.600 --> 0:18:35.880 it take? 0:18:36.000 --> 0:18:36.480 Was it easy? 0:18:36.560 --> 0:18:37.080 Was it tough? 0:18:38.680 --> 0:18:41.520 I would say it's never easy, you know, raising capital, 0:18:41.560 --> 0:18:45.359 regardless of the markets is never easy. I would say 0:18:45.440 --> 0:18:48.280 that the reason we were able to raise this round, 0:18:48.400 --> 0:18:51.719 and it's only nine months since our previous fundraise, was 0:18:51.920 --> 0:18:54.000 just the success we've had in the market over the 0:18:54.080 --> 0:18:56.320 last twelve months. And so as I say, and you know, 0:18:56.400 --> 0:18:59.880 we've increased the number of automated actions, we're performing ten 0:19:00.560 --> 0:19:03.200 in eighty months. We've grown our active users by about 0:19:03.200 --> 0:19:05.840 two hundred and fifty percent in the last twelve months. 0:19:06.000 --> 0:19:08.320 And so when you're kind of posting those numbers and 0:19:08.359 --> 0:19:11.199 you're adding the level of value we are to our customers, 0:19:11.320 --> 0:19:14.080 it tends to attract a lot of investor attention. And 0:19:14.160 --> 0:19:16.640 so we find that our customers and the customer love 0:19:16.720 --> 0:19:19.240 that we generate, that's really the reason we've been able 0:19:19.240 --> 0:19:20.640 to raise at this kind of valuation. 0:19:21.640 --> 0:19:24.000 Oh and let's talk about some of those customers, because 0:19:24.040 --> 0:19:26.680 a lot of European startups kind of get a bad 0:19:26.880 --> 0:19:29.200 rap for not being kind of the big heavy hitters 0:19:29.240 --> 0:19:31.720 that you see coming out of the US and Silicon Valley. 0:19:32.080 --> 0:19:34.560 Where is your customer base coming from? 0:19:35.640 --> 0:19:36.600 Yeah, it's a great question. 0:19:36.680 --> 0:19:39.280 So although we're headquartered here in Dublin, we also have 0:19:39.320 --> 0:19:42.879 offices in San Francisco, Boston, and in Australia, and so 0:19:42.960 --> 0:19:46.639 we very much consider ourselves a global company. About seventy 0:19:46.680 --> 0:19:49.680 five percent of our customers are in North America and Canada. 0:19:49.720 --> 0:19:52.199 We've got about twenty five percent in Europe. But it's 0:19:52.240 --> 0:19:55.640 across a variety of different segments, from commercial to enterprise, 0:19:55.760 --> 0:20:00.320 to fed to strategic. I would say that the their 0:20:00.480 --> 0:20:02.880 initial sweet spot for talents was in those high grow 0:20:02.960 --> 0:20:06.760 software companies so coin based, data Break, Snowflake. But since 0:20:06.760 --> 0:20:08.880 then we've expanded a lot into your kind of more 0:20:08.920 --> 0:20:13.119 traditional industries confectionery like Mars, but also in fed and 0:20:13.160 --> 0:20:14.040 strategic as well. 0:20:15.560 --> 0:20:19.080 We're expecting a much friendlier federal Trade Commission here in 0:20:19.119 --> 0:20:22.399 the United States and something that might open up the 0:20:22.480 --> 0:20:25.359 doors to more m and A. You operate in a 0:20:25.400 --> 0:20:28.119 space that could potentially see some of that uptick. Have 0:20:28.200 --> 0:20:30.040 you thought about how far you want to take this? 0:20:30.400 --> 0:20:32.520 Do you see yourself as a public company or perhaps 0:20:32.560 --> 0:20:33.520 sewing down the line. 0:20:34.760 --> 0:20:36.080 Yeah, it's a great question. 0:20:36.280 --> 0:20:38.560 I think what we love to do as a company, 0:20:38.720 --> 0:20:42.080 honestly is build product that our customers love, make our 0:20:42.119 --> 0:20:45.639 customers outrageously successful. And that's what we're going to be 0:20:45.680 --> 0:20:47.600 focused on for the next kind of like short and 0:20:47.760 --> 0:20:50.600 medium term. And I think if we do that, and 0:20:50.640 --> 0:20:53.520 then I think we'll have optionality towards the outcome. But 0:20:53.640 --> 0:20:56.080 right now, we're heads down focused on building a great product. 0:20:57.640 --> 0:21:01.240 Owen Henchy, time CEO, joining us from Bublin this afternoon. 0:21:01.280 --> 0:21:03.560 Thank you so much for joining us. To appreciate it. 0:21:12.240 --> 0:21:14.920 Welcome back to Bloomberg Technology. I'm Jim Stenoviek in. 0:21:14.920 --> 0:21:19.280 New York and I'm Jackie Devalis in San Francisco. SAP 0:21:19.440 --> 0:21:22.960 and Data Bricks are launching a new product combining SAP's 0:21:23.000 --> 0:21:27.200 business data with data Bricks AI platform for more. Ali Gotseed, 0:21:27.359 --> 0:21:30.440 CEO of Data Bricks, joined us. Now, Ali, you're going 0:21:30.480 --> 0:21:33.320 to invest two hundred and fifty million dollars. You say 0:21:33.320 --> 0:21:36.800 you're expecting a billion dollars in revenue. Talk to us 0:21:36.840 --> 0:21:40.520 about how this partnership is going to differentiate you from 0:21:40.520 --> 0:21:42.320 what's already on the market. 0:21:43.520 --> 0:21:46.240 Yeah, so this is you know, we've only had one 0:21:46.280 --> 0:21:48.760 partnership this big, and that was ten years ago with Microsoft. 0:21:48.960 --> 0:21:50.359 So we think this is going to be game tending 0:21:50.400 --> 0:21:53.280 for the industry. So when we talk to our customers, 0:21:53.400 --> 0:21:55.000 we say, oh, we have an amazing platform. 0:21:55.040 --> 0:21:57.719 It's great. They always say, but what about the SAP data. 0:21:57.880 --> 0:22:01.160