Speaker 1: From Mahard. We're Innovation, Money and Power Collie in Silicon
Speaker 1: Vallet NBN. This is Bloomberg Technology with Caroline Hyde and
Speaker 1: Ed Ludlove.
Speaker 2: I'm Caroline Hyde at Bloomberg's world headquarters in New York
Speaker 2: and I.
Speaker 3: Had other in San Francisco. We're back Carrow.
Speaker 4: This is Bloomberg Technology.
Speaker 2: And guess what we're still talking about it coming up
Speaker 2: in video hitting one trillion dollars. It's the ninth company
Speaker 2: to ever reach the valuation. We're going to bring you
Speaker 2: all things AI throughout the show and despite the.
Speaker 3: AI rally, industry leaders warning the technology poses the risk
Speaker 3: of extinction. Will discuss a letter out from the heads
Speaker 3: of Open Ai, Google, DeepMind, Anthropic and others calling for caution.
Speaker 2: Class Elon Musk touches down in Beijing. We'll bring you
Speaker 2: the latest of his visit as a Tesla. CEO emphasises
Speaker 2: the importance of ties with China and let's get a
Speaker 2: global look on these markets right now, because actually the
Speaker 2: Chinese economy is actually still a key caution of concern
Speaker 2: for many and that is why we're seeing the Golden Dragon. That's,
Speaker 2: of course the Nasdak Golden Dragon in it's just off
Speaker 2: by more than three percent. Look, the Nasdaq is your
Speaker 2: outperformer today. The technology sector is your outperformer. Is Actually
Speaker 2: the rest of the world is still worrying about recession
Speaker 2: risks or worried about inflation. So we see the nasdak
Speaker 2: up sixtens percent, but not the other key US benchmarks.
Speaker 2: On the day ed we're seeing there a big rally
Speaker 2: in the US debt market. Ten year we see yields
Speaker 2: coming down some nine to ten basis points. For the reason,
Speaker 2: wellb deal relief. Yet to seal the deal, but certainly
Speaker 2: some sort of an agreement coming from across the aisles.
Speaker 2: We'll see whether that manages to push through and we
Speaker 2: avoid the vault here in the United States that really
Speaker 2: affected the crypto market. Just take a look at where
Speaker 2: we were earlier in terms of bitcoin. We managed to rally.
Speaker 2: It was the highest in a couple of months actually,
Speaker 2: but we've now dipped back down. We're currently trading flat
Speaker 2: on the day twenty seven, six hundred and seventy two
Speaker 2: is where we trade. But like dive into the micro
Speaker 2: because this is a day for microintech.
Speaker 4: A lot happening in the newsflow, a lot around AI but.
Speaker 3: Start with Tesla up pretty much at its high level
Speaker 3: in around two months four percent.
Speaker 4: Elon Musk is in China.
Speaker 3: In a statement issued by the Chinese government, Elon Musk
Speaker 3: is quoted as saying, Tesla against the decoupling with China
Speaker 3: and will continue to invest and grow its business in
Speaker 3: that market. The narrative around that boosting shares broadcome a
Speaker 3: really interesting move to the upside up four point seven percent.
Speaker 3: A couple of names out on the cell side boosting
Speaker 3: their price targets upgrading the stock because they see it
Speaker 3: as a beneficiary in the aihight cycle that's playing out
Speaker 3: right now.
Speaker 4: In Nvidia.
Speaker 3: Let's talk about in Nvidia, the stock absolutely staring up
Speaker 3: five point seven percent as well, one trillion dollar market cap,
Speaker 3: the first chip maker or semiconductor name to reach a
Speaker 3: trillion dollars in market value, the ninth stock ever to
Speaker 3: do so. It joins that exclusive club alongside Apple, Amazon, Alphabet,
Speaker 3: the parent of Google, and Microsoft one point zero two
Speaker 3: to one trillion. As it stands, we'll see if we
Speaker 3: can maintain the current gains on the stock carriers we
Speaker 3: head towards the close, but it's a really big moment.
Speaker 3: So this company founded here on the West Coast nineteen
Speaker 3: ninety three. Jensen Wang, this founder CEO, has been out
Speaker 3: in Taiwan for the last forty eight hours or so,
Speaker 3: speaking often and really driving momentum around those shares. I
Speaker 3: want to bring in Blue Legs in King and talk
Speaker 3: more about in video because we actually got product announcements
Speaker 3: as well. Right in What have we learned about in
Speaker 3: Vidia's latest offering in the field of AI?
Speaker 5: Well, are you ready for the list? We've got a
Speaker 5: super chip, a supercomputer. I think at least two new
Speaker 5: data centers networking for AI to speed things up in
Speaker 5: the data center. I mean a number of tie ups.
Speaker 5: I mean the list goes on and on and on
Speaker 5: and on in terms of what they announced this weekend
Speaker 5: and over the last few days.
Speaker 2: I mean he said it himself, didn't he it's too much.
Speaker 2: I know it's too much, but his sense of urgency,
Speaker 2: this run don't walk mentality. Is it only something an
Speaker 2: in video, a founder led business could do in the
Speaker 2: chip market. Are we seeing other announcements coming from other
Speaker 2: players in this respect?
Speaker 5: I mean we'll see plenty of announcements for seeing, plenty
Speaker 5: of road maps, but nothing like the intensity that's being
Speaker 5: shown by this company. I mean, let's face it, we're
Speaker 5: at the beginning stages. If you believe in video, we're
Speaker 5: at the beginning stages. And there are a lot of problems,
Speaker 5: a lot of technical issues, a lot of fundamental design
Speaker 5: issues that need to be solved in order for this
Speaker 5: to move forward. The company that's addressing these the company
Speaker 5: that's utually saying, hey, look, this is what we're going
Speaker 5: to do.
Speaker 2: That's in video right now, I mean in video where
Speaker 2: it's at it feels like. But actually, when I turn
Speaker 2: on my terminal, everything was coming out of type A.
Speaker 2: Over the course of the weekend. You saw Qualcom trying
Speaker 2: to be in on the game. You saw so many
Speaker 2: other announcements pouring from this really important meetup.
Speaker 6: It seems to be happening.
Speaker 3: Yeah, you know, Jenson, I'm clearly taking advantage of gathering
Speaker 3: of minds. You know, he's kind of this rock Star
Speaker 3: figure now, leather jacket clad with his specs on stage.
Speaker 2: Remember it's tattoo, the Invidia tattoo.
Speaker 3: With the Nvidia tattoo on the shoulder. But like, how
Speaker 3: much does this story che changed?
Speaker 7: Right?
Speaker 3: The days of Elon Musk being the rock Star technology
Speaker 3: executive in a rover Jensen Wuang. I believe he was
Speaker 3: born in in Taiwan. He was educated here on the
Speaker 3: West coast. He's kind of really central to the story,
Speaker 3: and his own wealth is really ballooned.
Speaker 5: Right, Yeah, I mean, you know, he left Taiwan when
Speaker 5: he was four years old.
Speaker 4: He founded this company.
Speaker 5: He still runs it and as Caroline said, this is
Speaker 5: it's him, right, he still runs it day to day.
Speaker 5: Everything revolves around him. And that's really you know, a
Speaker 5: company that lives or dies in terms of the direction
Speaker 5: that their CEO gives.
Speaker 2: And there is news flow also from global not just
Speaker 2: chips makers, but chip designers in get us up to
Speaker 2: speed as to who took some of the other oxygen,
Speaker 2: the tiny bit that was left.
Speaker 6: Outside of Tensen.
Speaker 2: I mean, ARM were trying to make some announcements as well.
Speaker 5: Yeah, ARM was with mobile related. Qualcomm was talking about,
Speaker 5: you know, mobile related. One of the things that Qualcom
Speaker 5: is saying is like, look, you can't do this all
Speaker 5: over wireless, over the Internet because data centers are too
Speaker 5: far away. If you want that instant response, if you
Speaker 5: want your chat GPT to actually tell you something meaningful
Speaker 5: in aful amount of time, when you're on the run.
Speaker 5: You need a phone that's capable of doing this. So
Speaker 5: there's a lot going on. There's a lot of opportunities
Speaker 5: if you believe the hype.
Speaker 6: Let's dig into the hype.
Speaker 2: Next, Ian King, we thank you so much for giving
Speaker 2: us a healthy dose of what is reality and what
Speaker 2: is and let's look at the ultimate opportunity. Here is
Speaker 2: Zeno Mercer. Here's research analysts over at metify Robo Global
Speaker 2: Indices three point four billion dollars in assets under management,
Speaker 2: someone who's been quoted, been thinking of for decades in
Speaker 2: the world of AI and its applications and its investibilities.
Speaker 2: You know, I'm interested in your perspective as to whether,
Speaker 2: really in Vidio is the pixel shovels you want to
Speaker 2: be and they were for it for crypto.
Speaker 4: They've been it for gaming.
Speaker 2: Is in VideA the really place to be when you
Speaker 2: want to be in a ground level for AI.
Speaker 7: It's a great question, and thanks for having me on.
Speaker 8: I mean, on one hand, of course, Nvidia has the
Speaker 8: picks and shovels, and they're not just picks and shovels.
Speaker 8: They're actually generating applications that are being used both enterprise
Speaker 8: currently and in recently B to B, so they're not
Speaker 8: just chips anymore, which is kind of making their own
Speaker 8: self fulfilling virtuous super cycle for themselves.
Speaker 7: Yeah, however, no, yeah, we can pause.
Speaker 2: Yeah, I mean just dig into the supercomputer element of
Speaker 2: all of this and what else is trying to.
Speaker 8: Be Yeah, so they're getting into you know, they've got
Speaker 8: their omniverse where they're actually trying to simulate reality. There
Speaker 8: ass different you know, so that can be used for manufacturing,
Speaker 8: that can be used for proteins, and just generally helping
Speaker 8: simulate physics or at least empowering other companies to do that,
Speaker 8: which is very fundamental to improving any type of product design,
Speaker 8: designing cities, kind of any type of motion or physical
Speaker 8: interaction in the world.
Speaker 7: World. It's not just this digital back end.
Speaker 8: And language that people are excited about. The other ecosystems
Speaker 8: that they're going to be empowering alongside other players in
Speaker 8: the ecosystem, both infrastructure and you know, companies that specialize
Speaker 8: in those areas, such as physics, design, et cetera.
Speaker 2: Just what's fascinating amid all of this, of course, ED
Speaker 2: is Yes, there's real application, there's real tangible need you
Speaker 2: and I playing with it on a daily basis. But
Speaker 2: you can't get away from the fact that what you're saying,
Speaker 2: this is a six hundred billion dollar overall market ed
Speaker 2: we've now got a one trillion dollar company on the
Speaker 2: back of this.
Speaker 3: It feels like it's a valuation question, right that. The
Speaker 3: whole point of Roboglobal is to give investors, through different
Speaker 3: index and research, some exposure to developments in AI. But
Speaker 3: this is a stock trading at around two hundred times
Speaker 3: forward earnings.
Speaker 7: Right now, that's a good point.
Speaker 8: I mean, it's definitely run pretty far ahead of what
Speaker 8: it had been trading at. And if you think about
Speaker 8: what's happened over even the last year, you had a
Speaker 8: chip shortage with the supply chain, you had the chips
Speaker 8: as past, then you had people concerned about gaming and
Speaker 8: PC slowing down, and so last October the semiconductor market overall,
Speaker 8: even AI market had been that valuations had really dropped dramatically,
Speaker 8: and now they're starting to pick back up. So kind
Speaker 8: of a year of a year basis, it looks a
Speaker 8: little less run up, ye if you will, rather than
Speaker 8: the dramatic drop off there. But the rest of the
Speaker 8: AI ecosystem a lot of these companies are definitely not
Speaker 8: trading anywhere near in videos levels, and you know, you'll
Speaker 8: look at you know, the Think Index for example, where.
Speaker 7: We track infrastructure and applications.
Speaker 8: It's trading more along the lines of six point five
Speaker 8: x ford ev sales and forty x price to earnings
Speaker 8: on a floor looking basis.
Speaker 7: So that's a pretty dramatic step up.
Speaker 8: And we think a lot of these other players are
Speaker 8: either smaller and not getting the same attention. Of course
Speaker 8: you're watching this dramatic one up within video, but some
Speaker 8: of them will also maybe they'll appreciate and see these
Speaker 8: earnings triple in over time.
Speaker 7: Right, so you've got you know, cloud infrastructure.
Speaker 8: Edge automotive areas are going to benef as more people
Speaker 8: deploy and utilized AI, not just.
Speaker 7: In training but in practice. I kind of as what Ian.
Speaker 8: Was saying was like having these edge compute on device
Speaker 8: with computer vision being able to do it, not just in.
Speaker 7: The cloud like we're doing right now viewers or AI cloud,
Speaker 7: which will continue to be valuable and continue to be deployed.
Speaker 8: But it's going to saturate and deploy and empower many
Speaker 8: other different parts of the ecosystem, not just you know,
Speaker 8: in Vidia and the chips like it needs other player
Speaker 8: to survive. It's not a standalone, single unit player in
Speaker 8: the economy and an economy where it is going to
Speaker 8: take even more percentage of GDP and potentially go GDP,
Speaker 8: there could be deflationary pressure in some areas, but those
Speaker 8: are some of the area That's kind of how we're
Speaker 8: thinking about it here.
Speaker 7: At Grobo Global.
Speaker 3: Let's let's bring up that terminal chart showing in Vidia's
Speaker 3: market cap for just a second. You look at the
Speaker 3: spike on the right hand side of the screen that
Speaker 3: is showing that outlook. They gave basically growth which was
Speaker 3: fifty percent above what analysts were expecting. What's the story
Speaker 3: here is, you know, what did you learn from Nvidia's
Speaker 3: outlook about the demand right now for its products?
Speaker 7: I mean, it's really not surprising.
Speaker 8: We've been expecting more demand and more interest to happen
Speaker 8: for a while. It was more of when the the
Speaker 8: meander would shift over and what catalyst it would take,
Speaker 8: whether it was, uh, you know, autonomous vehicles, but in
Speaker 8: this case, it was getting AI out of kind of
Speaker 8: super enterprise research areas but actually into the hands of
Speaker 8: people where they're actually thinking business leaders are thinking, governments
Speaker 8: are thinking, hey, this is real and we need to
Speaker 8: figure out how to use this across not you know,
Speaker 8: every fastive society.
Speaker 7: You know, healthcare in the US is very expensive.
Speaker 8: You know, the US is thinking how can we deploy
Speaker 8: AI to improve healthcare outcomes, reduce medicare fraud.
Speaker 7: And just kind of all these different areas where you're
Speaker 7: seeing issues.
Speaker 8: This can be used to help solve and improve the
Speaker 8: processes and outcomes across all these different areas.
Speaker 2: What's interesting, there's one player who thought and realized that
Speaker 2: in video was cool before many others was buying it
Speaker 2: in twenty fourteen and has missed this rally. And it's
Speaker 2: Kathy Wood because she's got some concerns about the business,
Speaker 2: about competition, about valuation. Just kin of listened to you
Speaker 2: know what she said to us on Friday.
Speaker 1: In Vidia has become a check the box stock. That's
Speaker 1: where the valuation is where it is. But we are
Speaker 1: looking for those plays that have not only the vision
Speaker 1: from management team point of view and broad distribution, but
Speaker 1: also proprietary data and AI expertise.
Speaker 2: So you know, where are you looking for opportunities? Who
Speaker 2: else can you buy in at a better valuation than
Speaker 2: is going to ride this AI wave.
Speaker 7: It's a great question.
Speaker 8: You know, I agree and disagree with their approach and
Speaker 8: her approach in one hand. Yes, data and software plays
Speaker 8: are great, they are amazing. It's not just the video
Speaker 8: I already mentioned in video is not just hardware anymore.
Speaker 7: But there's lots of players.
Speaker 9: You know, don't don't really like to dive into specific names,
Speaker 9: but if you look at companies like Simsara, they're helping
Speaker 9: digitize and analyze real world analytics the vehicles and fleets
Speaker 9: around the world for utilities, for you know.
Speaker 7: Mining, like many different subsectors. So there's companies like that.
Speaker 8: Uh, you know, there are other semiconductor companies like Global
Speaker 8: Unitchen which is you know, partially owned by Taiwan Semiconductor.
Speaker 8: They're trading you know, more like forty x I think,
Speaker 8: or fifty x for pe So and the and their
Speaker 8: A six are being used in AI. So I think
Speaker 8: there's more picks and shovels to the ecosystem than software.
Speaker 7: Also, there's cybersecurity.
Speaker 8: There's cloud and networking compute companies like Arista and pure
Speaker 8: Storage where you know, demand and utilization and AI will
Speaker 8: require more storage. Both in the cloud and and you
Speaker 8: know on on premise on device, especially as we get
Speaker 8: more in the mold modal AI, which is not just
Speaker 8: TX but video, well that's going to.
Speaker 7: Require a lot more storage.
Speaker 8: And you know, somebody like companies like Pure Storage haven't
Speaker 8: really taken off.
Speaker 7: In fact, you know, she kind of like a temporary
Speaker 7: pain point. But you know it's hard to imagine that
Speaker 7: with this up tack and demand.
Speaker 8: Uh, that's kind of kind of tail along with it
Speaker 8: and grow with the rising kind.
Speaker 3: Yes, Cino massa robo Globo, someone that lives and breathes
Speaker 3: artificial intelligence and does so with a smile on their face.
Speaker 4: Caroline, thank you for you your times.
Speaker 1: You know, the company that gets a person in an
Speaker 1: autonomous vehicle from a point A to point B as
Speaker 1: quickly and safely as possible is probably going to get
Speaker 1: the lion's share of the market. And that company will
Speaker 1: in the United States, we believe be Tesla.
Speaker 3: That was a part of our interview of kafy woodscussing
Speaker 3: Tesla and sticking with the EV maker. Elon Musk is
Speaker 3: in China for the first time since the pandemic, where
Speaker 3: he met with the nation's foreign minister and emphasized the
Speaker 3: importance of maintaining ties with China. Let's bring in Bloomberg's
Speaker 3: Global Auto's editor Cray Trudel for more.
Speaker 4: This was a meeting with Ching Gang.
Speaker 3: What were the key kind of messages that came out
Speaker 3: of Elon Musk's visits to Beijing.
Speaker 10: Yeah, I think per your intro, I mean, that was
Speaker 10: one of the things that was sort of you know,
Speaker 10: universal in this readout from both sides, right, an emphasis
Speaker 10: on the need for US China collaboration. And it's sort
Speaker 10: of no wonder that that's a major point of emphasis
Speaker 10: on the part of the Foreign ministry, given what's been
Speaker 10: happening with chips, what's been happening with electric vehicle batteries.
Speaker 10: You've had Joe Biden and other leaders, you know, really
Speaker 10: make a concerted effort to wean the global auto industry
Speaker 10: off of the reliance on China for batteries, which you know,
Speaker 10: the country just absolutely dominates supply of not only and
Speaker 10: battery cells, but the raw materials and also chips. Right,
Speaker 10: a big emphasis on, you know, building up semiconductor supply
Speaker 10: outside of Asia, and whether it's in the US or Germany,
Speaker 10: and some real challenges on the part of whether Biden
Speaker 10: or ol Off Schultze in terms of getting companies to
Speaker 10: sort of agree to this change in approach.
Speaker 2: Well precisely because well, he's not alone in an musk.
Speaker 2: You've had the Mercedes CEO, We've just heard from Mary
Speaker 2: Barrow of GM, You've heard from other companies saying these
Speaker 2: ties need to remain despite leadership from a government perspective
Speaker 2: thinking otherwise.
Speaker 10: Yeah, and I think there is some sort of realism
Speaker 10: on the part of these government leaders of talking about
Speaker 10: de risking as opposed to decoupling. And I think there
Speaker 10: is going to be that sort of, you know, debate
Speaker 10: as to whether or not it is really realistic to
Speaker 10: completely decouple us from China or Germany from China. And
Speaker 10: if you ask, you know, the CEO of Mercedes Benz,
Speaker 10: he says it's it's not realistic, right, So whether or not,
Speaker 10: you know, it's it's possible to really cut these companies
Speaker 10: off from this market that's been a huge source of
Speaker 10: profits for them, a huge source of exports. If you're
Speaker 10: if you're Tesla, you know this, after all, was supposed
Speaker 10: to be a plant in Shanghai that was going to
Speaker 10: be for the domestic market. But it's really turned into
Speaker 10: this massive export base for Tesla to wear. Last year,
Speaker 10: you know, more than half of the cars they produced
Speaker 10: globally came out of that plant in Shanghai.
Speaker 3: Craig on Kafiwidd's point on autonomy, I believe the Bloomberg's
Speaker 3: source has told us that Elon Musk may meet with
Speaker 3: Chinese Premierliche Yang on autonomous driving in particular.
Speaker 10: Yeah, I think that's going to be a really interesting
Speaker 10: to watch play out because we've seen recently Tesla have
Speaker 10: to do a recall that they were able to address
Speaker 10: an over the air software update in China. There's obviously
Speaker 10: a lot of attention anytime Teslas get into any sort
Speaker 10: of safety issues in China, and to the extent that
Speaker 10: we start to see some of the same things that
Speaker 10: have happened in the US over the years of crashes,
Speaker 10: some of them fatal involving autopilot or full self driving.
Speaker 10: You know, to this point that's really been sort of
Speaker 10: isolated to North America, and you know, Elon Musk, we know,
Speaker 10: really wants to sort of you know, make that more
Speaker 10: global technology that that Tesla is able to deploy, and
Speaker 10: to the extent that you know, the government is willing
Speaker 10: to go along with that is a big question I
Speaker 10: think going forward.
Speaker 2: Great Dal thanks for keeping it global for us and
Speaker 2: all things elon Musk we thank you. Meanwhile, coming up,
Speaker 2: we're talking China. Some more lived off from China, how
Speaker 2: the country is narrowing the gap in the head to
Speaker 2: head space race in the United States, and this most
Speaker 2: recent launch, this is to bring back.
Speaker 4: Time for talking tech.
Speaker 3: First up, China making good on its goal for more
Speaker 3: prominence in the global space race, launching the Sheenzhu sixteen
Speaker 3: mission from a military controlled space center on Tuesday morning.
Speaker 11: The Schanzo sixteen mission is sending three astronauts to the
Speaker 11: Chinese Space Station, including the first civilian, a professor at
Speaker 11: Beijing based Beihang University. It's part of Beijing's plan to
Speaker 11: have a continuous presence at its space station. The Chinese
Speaker 11: Space Station is just one of several achievements that China
Speaker 11: has made in recent years as it tries to catch
Speaker 11: up to the US and space China has a also
Speaker 11: landed a craft on the far side of the Moon,
Speaker 11: the only country that's managed to do that. The next
Speaker 11: big project sending Chinese astronauts to the Moon a Chinese
Speaker 11: Space Agency official on Monday said the goal is to
Speaker 11: land on the Moon with a crude mission by twenty thirty.
Speaker 11: The US is also working to send astronauts back to
Speaker 11: the Moon part of its Artemis program. The US is
Speaker 11: so far more successful than China in winning international support
Speaker 11: for its space plans, with two dozen countries supporting the
Speaker 11: Artemis Accords, a Washington backed agreement to regulate activity on
Speaker 11: the Moon and elsewhere in space. China is seeking more
Speaker 11: space allies and offering more access to things like the
Speaker 11: Hunzo sixteen launch could help by showing Chinese confidence in
Speaker 11: its space capabilities.
Speaker 3: China's as it plans to send its astronauts to the
Speaker 3: Moon by twenty thirty, and Guita is expanding its presence
Speaker 3: in the US is it seeks to build a cheaper
Speaker 3: and less risky robot workforce for space missions. Fresh off
Speaker 3: raising thirty million dollars in funding, the Tokyo based startup
Speaker 3: told Bloomberg TV or we use the funds to recruit
Speaker 3: engineers and further develop its robots. Guitars, robotic arms and
Speaker 3: rovers can remotely perform routine construction work ranging from solar
Speaker 3: panel installation to welding plus Noise, the Indian based maker
Speaker 3: of smart watches and other gadgets, is in talks for
Speaker 3: its first ever fundraising round. Sources say the Noise is
Speaker 3: hoping to raise forty to fifty million dollars to gain
Speaker 3: dominance in India's fast growing wearables market. Last year, Noise
Speaker 3: accounted for more than half of the sales in the market,
Speaker 3: which screw forty seven percent overall thanks to its more
Speaker 3: affordable models.
Speaker 2: Welcome back to bloom meg Technology. I'm Carolinehid in New
Speaker 2: York and.
Speaker 3: Am Ed Lovelow in San francisc. We're going to check
Speaker 3: in on these markets. Carry I think some of the
Speaker 3: enthusiasm earlier in the session that was fueled by a
Speaker 3: I is kind of worn.
Speaker 4: Off a little bit.
Speaker 3: You look at the SMP five hundred, we're kind of
Speaker 3: flat in that main gage of US equities for outperformance
Speaker 3: in tex You look at then as that one hundred
Speaker 3: six tens and one percent. Some of the big movers
Speaker 3: to the upside are AI related. We'll get into that
Speaker 3: in just a second. Or the US tenure yield see
Speaker 3: kind of a pullbacking yield three point seven percent on
Speaker 3: the ten year treasury. Some of that around hopes that
Speaker 3: we will find resolution in the US debt ceiling negotiations.
Speaker 3: And also quick look at Bitcoin that's trading at around
Speaker 3: twenty seven thousand, seven hundred US dollars Partoker, we're basically
Speaker 3: back to where we were at the end of March.
Speaker 3: We kind of traded it in this range of between
Speaker 3: twenty six thousand and thirty thousand US dollars over the
Speaker 3: last two to three months or so. In terms of
Speaker 3: single names, there is really only one story out there,
Speaker 3: which is in Nvidia hitting a one trillion dollar market
Speaker 3: cat the first chipmaker to do so. Only nine stocks
Speaker 3: have ever hit that milestone. You see it up three
Speaker 3: point five percent, moving to the upside. Interesting to contrast
Speaker 3: with Alphabet, the parent company of Google, off by four
Speaker 3: tens of one percent, had been down much more significantly
Speaker 3: earlier in the session. This is another name that if
Speaker 3: you actually bring up a longer term chart, it has
Speaker 3: seen a run up and its shares fueled by its announcements,
Speaker 3: particularly in the field of AI. Thinking back to when
Speaker 3: I was at Google Io and what they're doing in
Speaker 3: some of the other mediums beyond text like photo, images,
Speaker 3: video as well. So that seems to be some selling
Speaker 3: in inverse what we're seeing in a.
Speaker 2: Video care well, great setup because we want to stick
Speaker 2: with exactly the alphabet family right now, turn to well
Speaker 2: YouTube you know you use it's got multiple platforms in
Speaker 2: the streaming era and look they're going to be disrupted
Speaker 2: and also embrace the world of artificial intelligence. So please
Speaker 2: to be discussing more of this with Lori Conkling, Wish's
Speaker 2: YouTube's global header, TV Films, Sports Partnerships. Wonderful to have
Speaker 2: you here in the studio, New York.
Speaker 6: Thanks coming, very nice to be here.
Speaker 2: L How much are you having this conversation with the
Speaker 2: media partners that you work with, with those within YouTube
Speaker 2: thinking how can you harness artificial intelligence right now to
Speaker 2: give us the comment we want.
Speaker 12: So we're having many conversations as you would imagine, around
Speaker 12: AI and how it can be applied in the media
Speaker 12: space and in the sports world. We a YouTube have
Speaker 12: been using it for years in terms of matching content
Speaker 12: and recommending content, looking at our roadmap and how we
Speaker 12: really create that personalization. Our content partners have their own
Speaker 12: plans and we collaborate with them. Obviously all of us
Speaker 12: are being very responsible in our approach but we're excited
Speaker 12: about the potential applications.
Speaker 2: And sharing that because you are, as you say in
Speaker 2: constant conversation with the media partners, would you ever give
Speaker 2: data to them? How do you think about the relationship
Speaker 2: and how it flourishes both of you at the same time.
Speaker 12: So Google obviously has very strict privacy policies and.
Speaker 6: We are always adhering to those.
Speaker 12: They're negotiated as part of our contracts, and so we're
Speaker 12: sensitive to that, but we're also very open to optimizing
Speaker 12: experiences within those parameters.
Speaker 4: Laurie good often into you. Good Morning, San Francisco.
Speaker 3: When I think about YouTube, I think about content creators
Speaker 3: and bringing their content to the platform. But increasingly the
Speaker 3: questions we're getting asked from our audience on the show
Speaker 3: is what YouTube's going to use in the field of
Speaker 3: generative AI texts to images? Is that something that YouTube's
Speaker 3: working on.
Speaker 12: So again, we're just exploring many different things. We see
Speaker 12: a lot of potential. We see potential with our own company,
Speaker 12: we see potential with our partners, and obviously YouTube is
Speaker 12: a composition of creator content, media content, music content, sports content,
Speaker 12: so there are many different partners that have ideas around
Speaker 12: it and again, it's ultimately all about the consumer and
Speaker 12: how we use technology in many different ways to optimize
Speaker 12: the experience every time they come.
Speaker 3: To YouTube, Laurie, we always want to give our audience
Speaker 3: the opportunity to ask questions. So when I tweeted that
Speaker 3: you were coming on the show, there was a lot
Speaker 3: of interest from Twitter users about the recommendation engine. And
Speaker 3: when you think about sports highlights, live events, short form video,
Speaker 3: what are you guys doing around the recommendation engine driven
Speaker 3: by AI.
Speaker 12: So a lot of what we do for our viewers
Speaker 12: is make sure that every time they come to YouTube,
Speaker 12: the format of content that they're interested in watching, as
Speaker 12: well as the business model that they'd like to consume
Speaker 12: that content under is available on our platform. So, as
Speaker 12: has been mentioned, we have ad supported video on demand,
Speaker 12: long form short form shorts, we have transactional VOD, we
Speaker 12: have pay television, we have primetime channels which we launched
Speaker 12: last year subscription ad supported. So it's really about creating
Speaker 12: that ecosystem where every time they come they find what
Speaker 12: they want, and of course there's an algorithm that as
Speaker 12: people continue to visit frequently, that algorithm is able to
Speaker 12: know what they would be likely interested in watching, and
Speaker 12: that content will be served up.
Speaker 2: I mean, that's why you're growing, while most live TV
Speaker 2: isn't growing, even Moffitt nathaness is, and I think shown
Speaker 2: in a light that YouTube is.
Speaker 6: I'm interested in.
Speaker 2: The reason also you're growing is the content you're serving
Speaker 2: NFL NFL Sunday Ticket in particular. How are you starting
Speaker 2: to lure in those people who want to be watching
Speaker 2: those sorts of games from DirecTV? Is it about the
Speaker 2: right price point? How are you deciding where you tackle
Speaker 2: those people for that content?
Speaker 12: So many of those people have already been watching highlights
Speaker 12: and clips of the NFL on YouTube on our ad
Speaker 12: supported platform. What we're doing for the first time ever
Speaker 12: is offering Sunday Ticket under two different platforms. So on
Speaker 12: YouTube Maine you can buy it through primetime channels and
Speaker 12: you can also buy it through.
Speaker 6: YouTube TV as an add on.
Speaker 12: And under DirecTV's model, you had to be a DirecTV
Speaker 12: subscriber in order to purchase Sunday Ticket. You do not
Speaker 12: have to be a YouTube TV subscriber in order to
Speaker 12: purchase Sunday Ticket from YouTube.
Speaker 6: You can do it off of YouTube.
Speaker 2: What about the well, if people want to get inside
Speaker 2: information on their favorite players on basically the content creates
Speaker 2: that are out there surrounding NFO.
Speaker 6: How do you think the world.
Speaker 2: Of influences is going to meet suddenly the world of
Speaker 2: life TV and the way that you can probably bundle it.
Speaker 12: So this is one of the areas we're most excited
Speaker 12: about because we recognize that creators are a really really
Speaker 12: interesting way to present sports content, TV film content, and
Speaker 12: in fact, with Sunday Ticket and with the NFL, we've
Speaker 12: seen a great opportunity to integrate. So at the NFL
Speaker 12: Draft we had thirty two creators there and do Perfect
Speaker 12: actually announced one of the draft picks, which.
Speaker 6: Was very well received.
Speaker 12: Our audience excus younger than other PayTV platforms, and that
Speaker 12: younger audience watches creators in addition to watching TV, film
Speaker 12: and sports content, So it's an integration that they embrace
Speaker 12: and it's a way for us to really bring all
Speaker 12: of the power of YouTube together.
Speaker 3: Laurie our colleagues at Blomberg News reporting over the weekend
Speaker 3: that Apple Netflix are looking at the long term of
Speaker 3: MBA rights, and one of the things they reported is
Speaker 3: that Fox, for example, if they entered the FRAY, could
Speaker 3: be interested in offering a stream through someone else's platform.
Speaker 3: How does YouTube think about the NBA going forward.
Speaker 12: So we are very very very strong partners with the NBA,
Speaker 12: again on platforms such as avod where we have clips
Speaker 12: and highlights, but also on YouTube TV, where we carry
Speaker 12: all of the networks that currently have the rights for
Speaker 12: the NBA. We carry NBA League Pass on primetime channels.
Speaker 12: We were the first streaming service to offer WMBA League
Speaker 12: Pass and offer that on a subscription basis to consumers,
Speaker 12: So we have that partnership in place.
Speaker 4: You know.
Speaker 6: Obviously we are looking to sports, as we.
Speaker 12: Just discussed with NFL Sunday Ticket, as an opportunity to
Speaker 12: continue to deliver rights and games to are viewers who
Speaker 12: are very very sports centered. But at the same time,
Speaker 12: there's nothing you know, to announce in regards to rights
Speaker 12: discussions with the NBA, but we do value their partnership
Speaker 12: and we'll continue to keep our sports fans top of mind.
Speaker 2: Those media partners that you now work with, you've worked
Speaker 2: for in your previous lives. You were the Disney with
Speaker 2: any I'm also noting that we're NBC Universal. What's interesting
Speaker 2: is recently a key executive of an NBC Universal has
Speaker 2: moved across to Go and had Twitter. Who do you
Speaker 2: see as your competition? You must have worked with Linda
Speaker 2: at some point. How do you see sort of this
Speaker 2: ending up? Who will win out or indeed can everyone
Speaker 2: from an offering of sports, of content and the way
Speaker 2: that we want to be consuming it.
Speaker 12: So basically, I think there's room for many platforms. And
Speaker 12: I did work with Linda, and obviously you know she
Speaker 12: has moved to Twitter, and there's value in the Twitter platform,
Speaker 12: There's value in the YouTube platform. There's value in Netflix
Speaker 12: and Disney, plus in all of these services. What I
Speaker 12: really like about YouTube is that we distribute many of
Speaker 12: these services and we make it easier for consumers to
Speaker 12: find them and to transact on them. And so I
Speaker 12: think people are very interested in different types of content
Speaker 12: under different business models, and we always put the customer
Speaker 12: at the center of the equation. And it goes back
Speaker 12: to what I said earlier. If they come to YouTube
Speaker 12: and they want to watch any of that content you
Speaker 12: just mentioned from Disney or NBCUniversal on an ad support basis,
Speaker 12: we have that. If they want to subscribe to a
Speaker 12: director consumer channel, we have that. If they want to
Speaker 12: watch a linear TV channel, we have that and so
Speaker 12: that is the value we bring to the media space
Speaker 12: that does have a lot of players who we consider
Speaker 12: to be great partners.
Speaker 2: We want five million at least eyeballs as well, So
Speaker 2: that's one to watch. We thank you, of course said
Speaker 2: we want to give a piece of thanks as well.
Speaker 4: Yeah.
Speaker 3: Laur Conkling, YouTube, Global head of TV, Film and Sports Partnership.
Speaker 3: Also note Caroy like how many live events are being
Speaker 3: hosted on YouTube as well. You think about earnings calls
Speaker 3: right through to the events that Tesla and Elon Musk
Speaker 3: are holding ironically now that they are on Twitter.
Speaker 4: Very interesting.
Speaker 3: Now coming up AI's impact on the fintech space, we'll
Speaker 3: discuss all that and more with Cambrian Ventures Rex Salisbury.
Speaker 4: That's next. This is Bloomberg.
Speaker 7: Now.
Speaker 3: In today's VC Spotlight, we take a look at the
Speaker 3: world of fintech. Well just kidding, I mean probably artificial intelligence.
Speaker 3: But we welcome Rex Sullisbury, general partner and founder of
Speaker 3: Cambrian Ventures, backing Findeck, founders, the Angel pre Seed and
Speaker 3: Seed levels twenty million dollars in assets under management. Rex
Speaker 3: also founding member of Andresent Horwitz, a sixteen's owned fintech
Speaker 3: team back in the day, I said, just kidding, but actually,
Speaker 3: whether you're in fintech or not, AI is touching everything.
Speaker 4: And anything right now. How's impacting the world that you
Speaker 4: operate in?
Speaker 13: Absolutely, AI is definitely a big trend going on in
Speaker 13: financial services right now. But I want to talk about
Speaker 13: kind of separating the hype in the reality. I like
Speaker 13: to think about AI and financial services as.
Speaker 7: A platform shift.
Speaker 13: So we are now call it eighteen years into the
Speaker 13: transformation that cloud has had in technology. More broadly, cloud
Speaker 13: computing AWS. Two thousand and five, they launched a simple
Speaker 13: storage solution S three, their very first cloud platform financial service,
Speaker 13: very slow to a top cloud technology right.
Speaker 7: Last year, JP.
Speaker 13: Morgan announced their very first cloud computing partnership with thought Machine,
Speaker 13: a London based company. So that is to say, we
Speaker 13: will see a lot of adoption of AI within financial services,
Speaker 13: but it may take may take it.
Speaker 3: Look at some of your Port Friday companies right, some
Speaker 3: of consumer wallets, some are B to B lending platforms.
Speaker 3: What is it that AI is doing, the changes they're offering,
Speaker 3: or the value proposition from your perspective, yet, to put.
Speaker 13: It simply lets them build better software more quickly with
Speaker 13: fewer resources a lot like cloud did. With cloud computing,
Speaker 13: you didn't have to own the servers anymore. You could
Speaker 13: get a product in the market more quickly.
Speaker 7: Now with AI, you.
Speaker 13: Can use very basic tools like gethubs copilot to rate
Speaker 13: write code more quickly. You can also use it to
Speaker 13: do process heavy workloads, which for anyone who's closed to
Speaker 13: mortgage or done anything else in finance knows there are
Speaker 13: a lot of very heavy process flows within financial services.
Speaker 13: And having these new AI tools let you write more
Speaker 13: code more quickly to do more things at lower cost.
Speaker 2: Will it therefore be more democratizing? From where these founders
Speaker 2: are coming from, Rex, Where do you look as it
Speaker 2: purely US, as it purely West Coast?
Speaker 6: Are you looking internationally?
Speaker 7: So?
Speaker 13: I focus on the US, and I specialize particularly in
Speaker 13: B to B or business to business fintech.
Speaker 4: But fintech is very much a.
Speaker 13: Global phenomenon, and I think there is a tremendous amount
Speaker 13: of exciting opportunity for investors globally. As a solo GP,
Speaker 13: I tend to play towards my strengths, and I think
Speaker 13: the US also has a lot of opportunity remaining. We're
Speaker 13: one of the largest unified markets with a really rich
Speaker 13: venture capital ecosystem. The Bay Area in particular has an
Speaker 13: incredibly deep set of networks and some of the best
Speaker 13: founders in the country I think tend to be out here,
Speaker 13: although I have back founders everywhere, so fintech very much
Speaker 13: a global phenomenon, but I am personally focused on backing
Speaker 13: the best US companies.
Speaker 2: It's interesting, Rex, your model is basically taking checks from
Speaker 2: previous fintech founders, putting it into an overall fund to
Speaker 2: then go and see new ideas. How much more jostling
Speaker 2: is there in the very early stage to see the
Speaker 2: very early checks being written at the moment because people
Speaker 2: are more worried about writing large checks in this economic environment.
Speaker 13: That's right, Caroline. I do focus on the preceed and seed.
Speaker 13: Now that's as stage that I'm very excited about because
Speaker 13: I've built out networks over decades, and you're right, we
Speaker 13: do have a bunch of founders who are investors or
Speaker 13: limited partners in the fund. My goal is to provide
Speaker 13: the founder's I support with access from the best networks
Speaker 13: in fintech. So we have founders from places like Plaid,
Speaker 13: Betterment so Far and other places. Sometimes they come along
Speaker 13: as angel investors in the deals I'm investing in. Often
Speaker 13: they end up being advisors or just episodically engaged, provide
Speaker 13: a channel, partnership, connectivity, et cetera. One of the cool
Speaker 13: things about the fintech ecosystem is just how integrated and
Speaker 13: networked it is. Because it's highly regulated, you often need
Speaker 13: to have partners who are doing various aspects of the
Speaker 13: complete solution you're building out. So having access to great
Speaker 13: founders is one of the key differentiators that I bring
Speaker 13: and then tends to benefit the portfolio companies. You had
Speaker 13: a question too about the extent to which it's competitive.
Speaker 13: So a lot of the multi stage firms have pulled
Speaker 13: back a little bit from the preceed and seed. I
Speaker 13: tend to focus very early on and I am intentionally
Speaker 13: a non lead investor and try to be very collaborative
Speaker 13: with other funds that may lead preseater seed rounds.
Speaker 4: Rex.
Speaker 3: How much of tailwind remains from svb's collapse for fintech.
Speaker 13: Yeah, so I think for certain growth stage fintech companies,
Speaker 13: especially business banks, it's been a huge tailwind. If you
Speaker 13: look at deposit inflows to companies like Row and Mercury
Speaker 13: Mercury alans all about two billion dollars of deposit inflows
Speaker 13: just a few weeks after the collapse of SVB. For
Speaker 13: those of you who aren't familiar with SVB or their
Speaker 13: business banking footprint, they had about an eighty percent market
Speaker 13: share of tech enabled or tech startups. Now they pulled
Speaker 13: out Mercury, which has about one hundred thousand customers. Most
Speaker 13: of their companies are also in the tech ecosystem, although
Speaker 13: they also support e commerce to other places. Now the
Speaker 13: biggest in company is out, and Mercury therefore is a
Speaker 13: great place for founders to go to to get access
Speaker 13: to great business banking services.
Speaker 2: Camry Inventions GP and founder. We thank you Mike sels Free.
Speaker 2: Oh it's time now for what's going viral. Guess what
Speaker 2: artificial intelligence is? But it's the risks potentially, and this
Speaker 2: is being pointed out as potentially a risk of extinction.
Speaker 2: It's not coming from a conspiracy theorist. That's a warning
Speaker 2: from a group of industry leaders from Open Ai, Google,
Speaker 2: Deep Mind, other AI labs joining us now to weigh
Speaker 2: in on these concerns if they should be the ones
Speaker 2: in the near term or not. Doctor Sasha Nuccioni research
Speaker 2: scientists that hugging Face which did not sign this latest
Speaker 2: letter coming from CASE, the Center for AI Safety. What
Speaker 2: do you make of these worries about longer term extinction
Speaker 2: visa some of the realities of AI right here right now.
Speaker 14: I think it's a way of controlling the narrative.
Speaker 3: So we should be talking about things.
Speaker 14: Like legislation, things like the risks of bias, the ways
Speaker 14: in which AI is being used, maybe in ways that
Speaker 14: isn't very isn't very a good persons side at large,
Speaker 14: But instead of we're focusing on these hypothetical risks. And
Speaker 14: I think the comparison, especially to pandemics provokes a really
Speaker 14: visceral reaction. So people really, you know, gets them in
Speaker 14: the gut when you compare things to COVID, and so
Speaker 14: we can talk about that instead and focus on that,
Speaker 14: instead of thinking about the things that are impacting our
Speaker 14: daily lives.
Speaker 3: Sasha, when you look at the list of signatories to
Speaker 3: this latest letter or statement on AI risks, what do
Speaker 3: you think is their motivation for doing this?
Speaker 14: I personally see it a bit as a magic trick,
Speaker 14: as misdirection, right. I care very very strongly about for example,
Speaker 14: data consent, for example, disclosing data sources, dis disclosing transparency
Speaker 14: and model documentation, and instead of focusing on that, we're
Speaker 14: being directed towards these unsolvable risks, right, because what can
Speaker 14: we really do if AI is a global threat to humanity?
Speaker 7: What does that really mean?
Speaker 14: And there was already a previous open letter about stopping
Speaker 14: all AI research for six months, which was equally unrealistic,
Speaker 14: I would say, And so I think that these companies
Speaker 14: are are kind of stalling, are stalling real regulation, are
Speaker 14: stalling real measures in AI deployment, in limiting how AI
Speaker 14: is deployed in society. So it's a bit of yeah,
Speaker 14: it's a bit of a hat trick.
Speaker 2: You wrote a great op ed in Why back when
Speaker 2: that first letter by a different organization was put out,
Speaker 2: and you called the call to Holt dangerous. AI research
Speaker 2: ignores the simple truth ultimately, that simple truth being that
Speaker 2: you know that's you can't just halt it, but also
Speaker 2: the fact that you need to improve transparency in the
Speaker 2: here and now, accountability in the here and now, and
Speaker 2: developing guidelines in the here and now? Is anyone doing
Speaker 2: that and you leading it? How do you see real
Speaker 2: impact being made in how AI is disrupting our life.
Speaker 14: There's definitely a lot of people doing impactful work.
Speaker 7: As as I looked.
Speaker 14: At list this morning, I realized that none of them
Speaker 14: signed this letter. So the people working on AI ethics,
Speaker 14: on making sure that you know, predictive policing doesn't get deployed.
Speaker 7: In across the world, things like that.
Speaker 14: The people are doing very impactful work in this field,
Speaker 14: and they don't necessarily get their say in things, right.
Speaker 14: For example, when when the US Senate asks for experts
Speaker 14: in AI, they ask for for example, Sam Altman from
Speaker 14: open Ai, who has a vested interest in AI succeeding right.
Speaker 7: And so we're really seeing.
Speaker 14: A select people controlling the narrative and leading it towards
Speaker 14: this kind of existential risk, future risk, hypothetical risk. And
Speaker 14: the people calling upon the dangers of AI now and
Speaker 14: regulating AI and documenting and you know, transparency, they're not
Speaker 14: being given a seat at the table in many in
Speaker 14: many places, you know, I.
Speaker 3: Think there are those out there that say, I've seen
Speaker 3: the Terminator films, and for me, that's the embodiment of
Speaker 3: the potential risk. I think your point, Sash, is that
Speaker 3: they're many more near term risks hugging Face research scientist
Speaker 3: Sasha Lucciani. Thank you, Caro, We're back together. But that
Speaker 3: does it for this edition of bloom Day Technology.
Speaker 2: One fascinating conversation to end it on ED and Look,
Speaker 2: these AI conversations keep coming up. The short term impact,
Speaker 2: the longer term, the investing implications, the way it's up
Speaker 2: ending business models. Check it out on our podcast from
Speaker 2: New York from San Francisco, Thiss Bloomberg