1 00:00:01,440 --> 00:00:05,120 Speaker 1: From the heart where Innovation, money and power Collie in 2 00:00:05,240 --> 00:00:06,720 Speaker 1: Silicon Valley, NBN. 3 00:00:07,040 --> 00:00:11,520 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 4 00:00:24,880 --> 00:00:26,560 Speaker 3: Now from Lomog's world headquarters in New York. 5 00:00:26,560 --> 00:00:28,360 Speaker 4: I'm Caroline High and I'm me d Lodlow, also in 6 00:00:28,400 --> 00:00:30,880 Speaker 4: New York this week, and this is Bloomberg Technology. 7 00:00:30,960 --> 00:00:31,400 Speaker 3: Coming up. 8 00:00:31,440 --> 00:00:34,640 Speaker 5: We are gotning the full earnings coverage for you. We 9 00:00:34,760 --> 00:00:36,880 Speaker 5: hear from the CEO of Ribbon on the ev makers 10 00:00:36,960 --> 00:00:40,040 Speaker 5: earnings and push ahead to all important Disney results after 11 00:00:40,080 --> 00:00:42,319 Speaker 5: the Bell not to mention a whole host of other 12 00:00:42,360 --> 00:00:43,000 Speaker 5: tech names. 13 00:00:43,280 --> 00:00:46,640 Speaker 4: Plus as we speak, we Work appears in bankruptcy court 14 00:00:46,880 --> 00:00:49,520 Speaker 4: to kick off a month's long debate about how creditors 15 00:00:49,680 --> 00:00:52,680 Speaker 4: should divide the remains of a once high flying company. 16 00:00:52,760 --> 00:00:55,320 Speaker 4: Details ahead and shares of take too attractive. 17 00:00:55,360 --> 00:00:58,120 Speaker 5: They are surging today after the company confirm reports it's 18 00:00:58,120 --> 00:01:00,200 Speaker 5: planning to release details on its hotly un This is 19 00:01:00,200 --> 00:01:03,920 Speaker 5: abated Grand, theft, Auto six, all that and so much 20 00:01:03,920 --> 00:01:04,560 Speaker 5: more coming up. 21 00:01:04,640 --> 00:01:05,479 Speaker 3: The story for me. 22 00:01:05,520 --> 00:01:08,679 Speaker 4: Is about Bob Eiger's turnaround. Right, all of those cuts, 23 00:01:08,920 --> 00:01:12,960 Speaker 4: the cost savings, thinking about reducing the content spend, Well, 24 00:01:12,959 --> 00:01:14,800 Speaker 4: that's how he's going to be judged by on the 25 00:01:14,800 --> 00:01:16,840 Speaker 4: bottom line after market. I think that's where we look 26 00:01:16,880 --> 00:01:18,000 Speaker 4: in a few hours time CARECT. 27 00:01:18,040 --> 00:01:20,160 Speaker 5: Yeah, return to growth, that's what people want to see, 28 00:01:20,160 --> 00:01:24,959 Speaker 5: whether it be on indeed Disney's subscriber growth on Disney Plus, 29 00:01:24,959 --> 00:01:26,679 Speaker 5: but also whether really you can see a turn around 30 00:01:26,680 --> 00:01:28,400 Speaker 5: in the overall numbers. Let's get to it with Chris 31 00:01:28,440 --> 00:01:31,240 Speaker 5: Palm Mary or Bloomberg and are we expecting a bounce 32 00:01:31,280 --> 00:01:31,839 Speaker 5: back to growth? 33 00:01:33,080 --> 00:01:33,319 Speaker 6: Yeah. 34 00:01:33,520 --> 00:01:36,400 Speaker 1: I mean, at least in terms of Wall Street expectations, 35 00:01:36,480 --> 00:01:39,080 Speaker 1: it's going to be a bump in sales, it's going 36 00:01:39,120 --> 00:01:43,319 Speaker 1: to be a higher profit a bottom line. They're expected 37 00:01:43,360 --> 00:01:46,960 Speaker 1: to show lower losses in the streaming business. So yeah, 38 00:01:46,959 --> 00:01:49,760 Speaker 1: all those things that you mentioned, the cost cutting, it 39 00:01:49,800 --> 00:01:50,800 Speaker 1: appears to be paying. 40 00:01:52,000 --> 00:01:53,160 Speaker 4: So I think this is going to be a really 41 00:01:53,160 --> 00:01:56,000 Speaker 4: big earnings Chris pal Mary, you lead our coverage of 42 00:01:56,040 --> 00:02:00,600 Speaker 4: the entertainment industry. Do you go into this thinking about 43 00:02:00,800 --> 00:02:05,200 Speaker 4: Disney is a tech company streaming subscribe as content or 44 00:02:05,320 --> 00:02:08,400 Speaker 4: do you wake up on earnings morning and think theme parks, 45 00:02:08,440 --> 00:02:10,240 Speaker 4: merchandise and traditional TV. 46 00:02:11,919 --> 00:02:14,480 Speaker 1: I always think of Disney Board as a conservative products company. 47 00:02:14,840 --> 00:02:17,280 Speaker 1: This has been a really choppy week in terms of 48 00:02:17,360 --> 00:02:21,240 Speaker 1: entertainment earnings. We saw Paramount Scott jumped last week when 49 00:02:21,280 --> 00:02:27,120 Speaker 1: they reported some better results. Today Warner Brothers dives and 50 00:02:27,160 --> 00:02:29,399 Speaker 1: again some numbers there in the Warner Brothers supports are 51 00:02:29,440 --> 00:02:32,200 Speaker 1: not bad. They show to profit in streaming in the 52 00:02:32,240 --> 00:02:36,000 Speaker 1: most recent quarter, which Disney and Paramount have not are 53 00:02:36,080 --> 00:02:36,640 Speaker 1: unlikely to. 54 00:02:37,120 --> 00:02:39,280 Speaker 6: So you never know what to expect. 55 00:02:39,639 --> 00:02:42,040 Speaker 1: It's been a really difficult market for advertising on the 56 00:02:42,080 --> 00:02:45,640 Speaker 1: traditional TV networks. That's something Disney is very much exposed to. 57 00:02:46,240 --> 00:02:49,520 Speaker 1: And the big questions always surround Disney and what is 58 00:02:49,520 --> 00:02:52,720 Speaker 1: Bob Iyer going to say on the call about divestitures 59 00:02:52,760 --> 00:02:57,560 Speaker 1: of ABC buying Bhulu, you know, other potential deals. 60 00:02:56,960 --> 00:02:59,840 Speaker 6: It's it's always, you know, something to. 61 00:02:59,800 --> 00:03:02,480 Speaker 5: Watch because this is actually where we get the first 62 00:03:02,680 --> 00:03:06,359 Speaker 5: well sports TV part of the business stripped out actually 63 00:03:06,400 --> 00:03:08,400 Speaker 5: showing us what the numbers really look like. When it 64 00:03:08,400 --> 00:03:11,000 Speaker 5: comes to ESPN, how much do you think he'll actually 65 00:03:11,040 --> 00:03:13,480 Speaker 5: answer questions about what he sells, what he buys. 66 00:03:15,720 --> 00:03:17,239 Speaker 6: I certainly hope you get to ask a lot. 67 00:03:17,320 --> 00:03:19,440 Speaker 1: I mean, ESPN is one of the ones they said 68 00:03:19,440 --> 00:03:21,400 Speaker 1: they're looking for a strategic partner. 69 00:03:21,560 --> 00:03:23,440 Speaker 6: We've reported they've talked. 70 00:03:23,200 --> 00:03:27,120 Speaker 1: To everyone tech companies, the sports leagues, it's not really 71 00:03:27,200 --> 00:03:29,760 Speaker 1: clear to a lot of people what Disney gets out 72 00:03:29,800 --> 00:03:32,720 Speaker 1: of the you know, bringing in another investor to ESPN. 73 00:03:32,960 --> 00:03:35,800 Speaker 6: Hearst Corporation owns twenty percent of it. You know. 74 00:03:35,840 --> 00:03:38,320 Speaker 1: One of the takeaways from the numbers they started reporting 75 00:03:38,320 --> 00:03:42,040 Speaker 1: on the sports business is that although it's profitable, you know, 76 00:03:42,120 --> 00:03:45,920 Speaker 1: it's it has really high content costs those NFL rights, 77 00:03:45,960 --> 00:03:48,120 Speaker 1: and that's something that's likely to come into play in 78 00:03:48,160 --> 00:03:51,440 Speaker 1: this quarter, as they reported as well. So getting that 79 00:03:51,520 --> 00:03:53,840 Speaker 1: picture of ESPN and where it goes from here, it's 80 00:03:53,840 --> 00:03:54,120 Speaker 1: going to be. 81 00:03:54,120 --> 00:03:56,800 Speaker 4: Important, all right, bloom best Chris paum Mary, you are 82 00:03:56,840 --> 00:03:59,280 Speaker 4: the editor in charge of our entertainment coverage. Is a 83 00:03:59,280 --> 00:04:01,840 Speaker 4: busy day for you on the West coast. Thank you 84 00:04:02,040 --> 00:04:04,200 Speaker 4: very much. Look a name that I've been watching, Caro 85 00:04:04,440 --> 00:04:06,840 Speaker 4: is Rivian, as you know, has changed my desk for earnings. 86 00:04:07,080 --> 00:04:09,840 Speaker 4: Shares really popped last night again in pre market because 87 00:04:09,840 --> 00:04:13,240 Speaker 4: of two pieces of news. Updated guidance they'll build more 88 00:04:13,240 --> 00:04:17,240 Speaker 4: evs and expected but also Amazon has freed them from 89 00:04:17,240 --> 00:04:19,560 Speaker 4: their exclusivity on vans. They can go and sell vans 90 00:04:19,560 --> 00:04:22,040 Speaker 4: to others, and I'd heard from sources they were well 91 00:04:22,120 --> 00:04:25,040 Speaker 4: underway with that, so I asked the CEO R J. Scarrange, 92 00:04:25,200 --> 00:04:25,680 Speaker 4: have a listen. 93 00:04:26,720 --> 00:04:29,640 Speaker 7: It's not as if we woke up yesterday and we 94 00:04:29,720 --> 00:04:33,440 Speaker 7: signed the exclusivity that changed the exclusivity agreement with Amazon. 95 00:04:33,440 --> 00:04:36,080 Speaker 7: It was a long, long process and through that process 96 00:04:36,120 --> 00:04:39,560 Speaker 7: we're able to use that time to build a pipeline 97 00:04:39,760 --> 00:04:42,600 Speaker 7: of other customers and diverse customers. 98 00:04:43,200 --> 00:04:44,480 Speaker 8: We're not yet announcing any. 99 00:04:44,320 --> 00:04:48,719 Speaker 7: Of those deals, but they'll start by large with pilot 100 00:04:49,320 --> 00:04:53,600 Speaker 7: deployments where we have sort of skilled the skilled number 101 00:04:53,600 --> 00:04:56,400 Speaker 7: of vehicles that go out and test the systems, understand 102 00:04:56,400 --> 00:04:59,080 Speaker 7: how they fit within the network. But what you'll see 103 00:04:59,160 --> 00:05:02,839 Speaker 7: is it's very verse across everything from last mile to 104 00:05:02,960 --> 00:05:06,920 Speaker 7: retail to of course just more general purpose commercial applications 105 00:05:06,920 --> 00:05:07,680 Speaker 7: of vans. 106 00:05:08,080 --> 00:05:11,120 Speaker 4: You have an announcement but have not announced them, but 107 00:05:11,200 --> 00:05:13,560 Speaker 4: there are deals, deals that are done, and you have 108 00:05:13,680 --> 00:05:15,599 Speaker 4: visibility on new customers on eDV. 109 00:05:16,240 --> 00:05:18,760 Speaker 8: From this point on, what I'd say is we. 110 00:05:18,760 --> 00:05:23,240 Speaker 7: Have very high visibility on customers outside of Amazon, and 111 00:05:23,320 --> 00:05:25,640 Speaker 7: we are excited to talk about those, but we're not 112 00:05:25,720 --> 00:05:29,880 Speaker 7: yet talking about those other those other relationships and partnerships. 113 00:05:30,000 --> 00:05:34,080 Speaker 4: A j Rivian is still losing thirty one thousand dollars 114 00:05:34,080 --> 00:05:37,400 Speaker 4: on every ev that it makes when will you start 115 00:05:37,440 --> 00:05:40,760 Speaker 4: making money on them? 116 00:05:41,080 --> 00:05:44,200 Speaker 7: Yeah, this has been absolutely a core focus for us 117 00:05:44,200 --> 00:05:47,039 Speaker 7: as a business, and quarter of a quarter we've shown 118 00:05:47,120 --> 00:05:50,279 Speaker 7: significant progress. We certainly showed that as we went from 119 00:05:50,360 --> 00:05:52,440 Speaker 7: Q two to Q three and talked about those results 120 00:05:52,520 --> 00:05:57,640 Speaker 7: yesterday and these improvements that are driving us towards the 121 00:05:57,760 --> 00:06:01,000 Speaker 7: long term twenty five percent corossmark that we've talked about 122 00:06:01,680 --> 00:06:02,839 Speaker 7: extensively on our one. 123 00:06:04,120 --> 00:06:04,919 Speaker 8: You can almost think of it. 124 00:06:04,920 --> 00:06:06,840 Speaker 7: As a staircase. There's a whole host of changes that 125 00:06:06,920 --> 00:06:09,520 Speaker 7: are happening in our material costs. That's our bill of materials, 126 00:06:10,160 --> 00:06:13,760 Speaker 7: there's improvements in our plant. There's the fixed cost absorption 127 00:06:13,839 --> 00:06:16,720 Speaker 7: from running at higher of arms in the plant. And then, 128 00:06:16,760 --> 00:06:20,000 Speaker 7: as of course, there's the evolution of our average selling price, 129 00:06:20,000 --> 00:06:22,440 Speaker 7: which continues to trend upwards as we move into newer 130 00:06:22,520 --> 00:06:25,800 Speaker 7: orders and also launch things like our Max Pack, our 131 00:06:25,880 --> 00:06:29,440 Speaker 7: largest battery pack. But importantly, I do want to really 132 00:06:29,480 --> 00:06:31,920 Speaker 7: be clear here this staircase of steps. 133 00:06:32,120 --> 00:06:33,320 Speaker 8: The biggest step. 134 00:06:33,080 --> 00:06:36,360 Speaker 7: Amongst those is what will be putting in place in 135 00:06:36,400 --> 00:06:39,520 Speaker 7: the plant in the second quarter twenty twenty four, where 136 00:06:39,520 --> 00:06:41,719 Speaker 7: there's a consolidated set of changes that go into the 137 00:06:41,800 --> 00:06:44,880 Speaker 7: vehicle that dramatically reduced to bill of materials and also 138 00:06:44,960 --> 00:06:48,640 Speaker 7: allows to run the plant more efficiently. That's not to 139 00:06:48,680 --> 00:06:50,760 Speaker 7: say there's not improvements that are happening leading up to that, 140 00:06:50,800 --> 00:06:53,520 Speaker 7: but we had a similar shutdown that we did on 141 00:06:53,520 --> 00:06:57,000 Speaker 7: our commercial van early part of this year, and coming 142 00:06:57,000 --> 00:06:59,080 Speaker 7: out of that we had a thirty five percent reduction 143 00:06:59,120 --> 00:07:03,240 Speaker 7: in our material costs. So that's the scale of change 144 00:07:03,240 --> 00:07:05,240 Speaker 7: that we're going to be driving with the shutdown for 145 00:07:05,360 --> 00:07:07,839 Speaker 7: R one in the second quarter twenty twenty four. 146 00:07:08,240 --> 00:07:09,480 Speaker 8: And these are contractual. 147 00:07:09,600 --> 00:07:13,040 Speaker 7: These are contractual changes, meaning bill in materials changes. Are 148 00:07:13,080 --> 00:07:15,480 Speaker 7: not like us hoping suppliers are going to charge us 149 00:07:15,560 --> 00:07:22,120 Speaker 7: lest These are hard negotiations with suppliers contractually obligated, but. 150 00:07:22,040 --> 00:07:24,320 Speaker 8: There's effectivity dates that have to be achieved. 151 00:07:24,360 --> 00:07:26,880 Speaker 7: You know, they don't all apply immediately, they come in 152 00:07:26,880 --> 00:07:27,360 Speaker 7: over time. 153 00:07:27,920 --> 00:07:28,200 Speaker 8: Oh ja. 154 00:07:28,440 --> 00:07:33,040 Speaker 4: Our audience has one common question, very straightforward, when will 155 00:07:33,040 --> 00:07:36,480 Speaker 4: they see in R two prototype A prototype. 156 00:07:37,880 --> 00:07:40,200 Speaker 8: We absolutely can't wait to show it. 157 00:07:42,280 --> 00:07:45,320 Speaker 7: We're going to be showing the R two program in 158 00:07:45,360 --> 00:07:48,120 Speaker 7: the first quarter of this coming year, so early part 159 00:07:48,120 --> 00:07:52,800 Speaker 7: of next year. This is a absolutely vital program for 160 00:07:52,880 --> 00:07:55,760 Speaker 7: us as a business. It allows us to take our 161 00:07:55,800 --> 00:07:58,400 Speaker 7: brand and what we built as a company and put 162 00:07:58,440 --> 00:08:01,240 Speaker 7: into a smaller package, but importantly much more a priced vehicle. 163 00:08:02,080 --> 00:08:04,480 Speaker 7: But I've never been this excited about a product as 164 00:08:04,520 --> 00:08:08,040 Speaker 7: I am about R two. It is that exciting it 165 00:08:08,120 --> 00:08:10,080 Speaker 7: and I would say it's that good. We think it's 166 00:08:10,160 --> 00:08:11,000 Speaker 7: just exceptional. 167 00:08:11,160 --> 00:08:13,760 Speaker 4: But quickly, to be clear, you'll whip the canvas off 168 00:08:13,800 --> 00:08:16,400 Speaker 4: on stage or something in the first quarter of twenty 169 00:08:16,400 --> 00:08:18,120 Speaker 4: four on an R two prototype. 170 00:08:18,720 --> 00:08:20,600 Speaker 8: We're going to be showing it their other product next year. Yep, 171 00:08:20,640 --> 00:08:21,080 Speaker 8: that's right. 172 00:08:22,200 --> 00:08:25,360 Speaker 4: That's my interview with r J Scaring Ruvian CEO. Some 173 00:08:25,480 --> 00:08:30,520 Speaker 4: say doppelganger. Now coming up, I'm say, Caroline, says Steve O. 174 00:08:31,120 --> 00:08:32,440 Speaker 4: Coming up on the show. We're going to talk about 175 00:08:32,440 --> 00:08:36,360 Speaker 4: safeguards for artificial intelligence with the CEO of Credo AI, 176 00:08:36,480 --> 00:08:39,440 Speaker 4: who's in town to kick off the Responsible AI Summit, 177 00:08:39,440 --> 00:08:41,839 Speaker 4: which is in New York today. Carra, what you got? 178 00:08:42,000 --> 00:08:44,640 Speaker 5: I Meanwhile, look, there are a whole host of earnings 179 00:08:44,679 --> 00:08:46,760 Speaker 5: that are coming up, some of them relatively new to 180 00:08:46,800 --> 00:08:49,280 Speaker 5: publicly training life once again, arm Key among them. It's 181 00:08:49,280 --> 00:08:51,360 Speaker 5: actually down on the day, as of course, most of 182 00:08:51,400 --> 00:08:53,920 Speaker 5: the spectrum is in terms of tech arm off by 183 00:08:53,920 --> 00:08:55,760 Speaker 5: three percent. But look for their numbers after the bell 184 00:08:55,800 --> 00:08:58,880 Speaker 5: lift as well All Important after Uber managed to outperform 185 00:08:58,880 --> 00:09:02,000 Speaker 5: Instacart as well Key as It's down some four percent. 186 00:09:02,000 --> 00:09:04,520 Speaker 5: And of course, both of these recently listed companies have 187 00:09:04,520 --> 00:09:07,120 Speaker 5: been under pressure since going public. Or keep a close 188 00:09:07,160 --> 00:09:10,040 Speaker 5: eye on all of that From New York, both of 189 00:09:10,080 --> 00:09:12,520 Speaker 5: us today Listen Blue Meade Technology. 190 00:09:26,880 --> 00:09:29,120 Speaker 4: Some news in the social media space and an effort 191 00:09:29,200 --> 00:09:33,679 Speaker 4: to combat misinformation, Meta will soon require advertisers to disclose 192 00:09:33,679 --> 00:09:37,520 Speaker 4: when political or social issue ads have been created or 193 00:09:37,559 --> 00:09:41,040 Speaker 4: altered by artificial intelligence. The rules will go intoffect in 194 00:09:41,080 --> 00:09:44,319 Speaker 4: twenty twenty four and will require advertisers to disclose when 195 00:09:44,360 --> 00:09:48,359 Speaker 4: AI is used in Facebook or Instagram ads on social issues, elections, 196 00:09:48,440 --> 00:09:51,360 Speaker 4: or politics. This according to the company's vice president of 197 00:09:51,360 --> 00:09:52,960 Speaker 4: Global Affairs, Nick Klek. 198 00:09:53,640 --> 00:09:56,839 Speaker 5: And all of that is of course surrounding safeguards ways 199 00:09:56,840 --> 00:09:59,439 Speaker 5: in which you can identify artificial intelligence? 200 00:09:59,520 --> 00:10:01,280 Speaker 3: What about protection from AI? 201 00:10:01,320 --> 00:10:04,120 Speaker 5: More broadly, Today in New York, in the City Credo 202 00:10:04,160 --> 00:10:07,400 Speaker 5: AI will kick off it's Responsible AI Leadership Summit. Basically, 203 00:10:07,400 --> 00:10:09,640 Speaker 5: it brings together the industry pioneers who are kind of 204 00:10:09,720 --> 00:10:12,760 Speaker 5: leading the charge in the adoption of AI governance globally. 205 00:10:13,120 --> 00:10:15,640 Speaker 5: Please to welcome to the show. Credo AI CEO Nvna 206 00:10:15,679 --> 00:10:17,679 Speaker 5: Singh right here in New York with us. Wonderful to have. 207 00:10:17,679 --> 00:10:18,120 Speaker 3: You with us. 208 00:10:18,240 --> 00:10:21,760 Speaker 9: Thank you so much for having me so Ultimately, are. 209 00:10:21,720 --> 00:10:26,199 Speaker 5: The right people, the right voices, exerting their voices and 210 00:10:26,240 --> 00:10:29,600 Speaker 5: having changed is made at the moment because everyone's wildly 211 00:10:29,600 --> 00:10:32,000 Speaker 5: trying to adopt AI. Are they getting the governance and 212 00:10:32,040 --> 00:10:33,600 Speaker 5: the rules in place quickly enough? 213 00:10:34,240 --> 00:10:35,520 Speaker 9: What a great question, Carolyn. 214 00:10:35,600 --> 00:10:37,360 Speaker 10: You know, the past ten days, if there are any 215 00:10:37,400 --> 00:10:41,360 Speaker 10: signal of the urgency in adopting artificial intelligence. We've seen that, 216 00:10:41,800 --> 00:10:44,480 Speaker 10: you know, from the executive order from President Biden all 217 00:10:44,520 --> 00:10:46,880 Speaker 10: the way to the UKI summit, to a lot of 218 00:10:46,920 --> 00:10:49,160 Speaker 10: discussion around how do we now actually make this real? 219 00:10:49,600 --> 00:10:50,720 Speaker 9: And this is why. 220 00:10:50,559 --> 00:10:53,319 Speaker 10: We are here in New York today because we are 221 00:10:53,320 --> 00:10:57,679 Speaker 10: hosting Industries First Responsible, the premier event where we are 222 00:10:57,720 --> 00:11:01,800 Speaker 10: going to be bringing in partners customers from Amazon to 223 00:11:01,960 --> 00:11:05,679 Speaker 10: Microsoft to Google, Boozal and MasterCard and many others who 224 00:11:05,720 --> 00:11:09,200 Speaker 10: are already operationalizing a lot of those guardrails within their 225 00:11:09,320 --> 00:11:12,800 Speaker 10: organizations today. So I think we've moved beyond the talk 226 00:11:13,240 --> 00:11:15,560 Speaker 10: and now it's time for action. And we are already 227 00:11:15,559 --> 00:11:17,560 Speaker 10: seeing that within the enterprises. 228 00:11:17,120 --> 00:11:20,760 Speaker 4: That is a who's who list of participants. It might 229 00:11:20,800 --> 00:11:23,200 Speaker 4: seem like a sort of strange question, but are there 230 00:11:23,240 --> 00:11:26,319 Speaker 4: any stakeholders in the world of AI that declined your 231 00:11:26,320 --> 00:11:29,280 Speaker 4: invitation that you wish hey sit down with us and 232 00:11:29,360 --> 00:11:31,199 Speaker 4: talk because you're a big part of. 233 00:11:31,120 --> 00:11:35,120 Speaker 10: This Good news is no, everyone that we invited is 234 00:11:35,160 --> 00:11:37,199 Speaker 10: showing up. But as you can imagine that, there are 235 00:11:37,280 --> 00:11:41,480 Speaker 10: certain policymakers as well as startups and companies in Europe 236 00:11:41,760 --> 00:11:43,920 Speaker 10: that are heads down right now with the EUAI Act, 237 00:11:44,200 --> 00:11:45,920 Speaker 10: So they weren't able to join us in person, but 238 00:11:45,960 --> 00:11:47,240 Speaker 10: they are joining us virtually. 239 00:11:47,520 --> 00:11:51,840 Speaker 5: It's the frustration that well, ultimately laws aren't being made 240 00:11:51,920 --> 00:11:53,920 Speaker 5: quickly enough, because it does for everyone wants to say 241 00:11:53,920 --> 00:11:57,160 Speaker 5: this time it's different visa v crypto visav social media. 242 00:11:57,000 --> 00:11:59,480 Speaker 4: And it's a regional thing, right Europe versus US. What's 243 00:11:59,480 --> 00:12:00,800 Speaker 4: happening in and. 244 00:12:00,720 --> 00:12:02,680 Speaker 5: They do all seem to be coming together and talking 245 00:12:02,679 --> 00:12:04,800 Speaker 5: a lot about it, but ultimately it takes time to 246 00:12:04,840 --> 00:12:09,600 Speaker 5: make policy. Is self regulation, as some of our guests 247 00:12:09,640 --> 00:12:12,000 Speaker 5: have say, basically marking your own homework the way that 248 00:12:12,000 --> 00:12:13,400 Speaker 5: it has to be for the naytime. 249 00:12:14,040 --> 00:12:16,880 Speaker 10: You know, Carolyn, I think in the world of AI 250 00:12:17,000 --> 00:12:19,320 Speaker 10: and if you just think about what really powers this 251 00:12:19,480 --> 00:12:20,320 Speaker 10: entire ecosystem. 252 00:12:20,400 --> 00:12:20,960 Speaker 9: It's trust. 253 00:12:21,480 --> 00:12:26,320 Speaker 10: So certainly regulators and upcoming compliance needs are a driving force. 254 00:12:26,520 --> 00:12:29,760 Speaker 10: But right now what we are seeing is the reason organizations, 255 00:12:29,840 --> 00:12:34,240 Speaker 10: policy makers, different stakeholders scare about governance is because you 256 00:12:34,280 --> 00:12:37,640 Speaker 10: want to engender trust in this powerful technology which is 257 00:12:37,720 --> 00:12:38,760 Speaker 10: luckily shaping our lives. 258 00:12:38,760 --> 00:12:40,880 Speaker 9: Day in day out. So I think, if you step. 259 00:12:40,679 --> 00:12:43,640 Speaker 10: Back from the regulatory compliance today, how can we make 260 00:12:43,679 --> 00:12:47,080 Speaker 10: that trust happen. It is through transparency, it is through oversight, 261 00:12:47,320 --> 00:12:48,840 Speaker 10: and it is through actual guardrails. 262 00:12:49,120 --> 00:12:52,360 Speaker 4: On that transparency issue. You heard the story that we 263 00:12:52,760 --> 00:12:55,560 Speaker 4: covered on Meta right, if it's a political or social 264 00:12:55,559 --> 00:12:58,959 Speaker 4: issue add and it's been altered or created by AI, 265 00:12:59,559 --> 00:13:01,600 Speaker 4: then you're you have to disclose it As an advertiser. 266 00:13:02,120 --> 00:13:04,720 Speaker 4: Does that work? Is it a powerful tool to your mind? 267 00:13:05,440 --> 00:13:05,600 Speaker 3: You know? 268 00:13:05,679 --> 00:13:08,040 Speaker 10: I think it's a starting point. One of the things 269 00:13:08,040 --> 00:13:10,880 Speaker 10: that is really nerve racking for me as well as 270 00:13:10,920 --> 00:13:14,280 Speaker 10: a technologist is there's so much information out there and 271 00:13:14,320 --> 00:13:17,440 Speaker 10: we're already entering this phase where we don't know what's 272 00:13:17,440 --> 00:13:20,560 Speaker 10: made by human versus what's made by AI versus what's 273 00:13:20,559 --> 00:13:23,800 Speaker 10: made by human plus AI combination. So I think we 274 00:13:23,840 --> 00:13:27,840 Speaker 10: are entering this phase where need for you know, watermarking, 275 00:13:27,920 --> 00:13:31,480 Speaker 10: need for provenance, need for really understanding the entire lineage 276 00:13:31,720 --> 00:13:34,040 Speaker 10: is going to be critical and we are just at 277 00:13:34,040 --> 00:13:35,920 Speaker 10: the starting point. It's a very complex issue and a 278 00:13:35,920 --> 00:13:39,040 Speaker 10: lot of technological innovation but also policy innovation is needed. 279 00:13:39,800 --> 00:13:44,000 Speaker 5: Can you just walk us through how you at Creto 280 00:13:44,480 --> 00:13:48,160 Speaker 5: ultimately help a company get the right rails in place? 281 00:13:48,200 --> 00:13:50,000 Speaker 3: How have you thought about writing. 282 00:13:49,640 --> 00:13:52,240 Speaker 5: The war book ahead of anyone else, She's setting them 283 00:13:52,280 --> 00:13:53,520 Speaker 5: from a regular shap perspective. 284 00:13:53,840 --> 00:13:56,319 Speaker 10: Yeah, so I think this is where Creto AI our 285 00:13:56,360 --> 00:13:58,440 Speaker 10: mission has always been, how do you make sure AI 286 00:13:58,480 --> 00:14:01,560 Speaker 10: is in service of humanity? And instead of just us 287 00:14:01,600 --> 00:14:04,680 Speaker 10: creating our rules, we first what we did was build 288 00:14:04,840 --> 00:14:08,920 Speaker 10: very strong partnerships in the ecosystem with the regulators, policy makers, 289 00:14:08,920 --> 00:14:12,120 Speaker 10: standard setting bodies like nist IO and others. So our 290 00:14:12,160 --> 00:14:15,320 Speaker 10: first step was really bringing all that knowledge in but 291 00:14:15,480 --> 00:14:19,440 Speaker 10: operationalizing that through software, through technology, and as you can imagine, 292 00:14:19,440 --> 00:14:23,160 Speaker 10: most of our team is AI experts, risk experts. So 293 00:14:23,280 --> 00:14:26,720 Speaker 10: now we are bringing in best practices from CREDOAI to 294 00:14:26,800 --> 00:14:29,239 Speaker 10: really help transform Just a quick. 295 00:14:29,000 --> 00:14:30,320 Speaker 9: Example, today's a big day. 296 00:14:30,360 --> 00:14:34,120 Speaker 10: We are launching our trust reports and trust scorecards, because 297 00:14:34,160 --> 00:14:38,040 Speaker 10: if you've been following the Open AIS dev day, they've 298 00:14:38,080 --> 00:14:41,880 Speaker 10: introduced the marketplace. Now, how do you actually make sure 299 00:14:41,960 --> 00:14:44,200 Speaker 10: that all these new applications that are showing up in 300 00:14:44,240 --> 00:14:47,920 Speaker 10: this marketplace are actually trusted and are governed. And this 301 00:14:48,000 --> 00:14:51,040 Speaker 10: is where Cretois trust layer comes in. We've learned a 302 00:14:51,080 --> 00:14:53,440 Speaker 10: lot in the enterprise world that we are now bringing 303 00:14:53,440 --> 00:14:56,360 Speaker 10: to startups so that they can compete but also win. 304 00:14:56,400 --> 00:14:57,040 Speaker 9: In the stage of. 305 00:14:56,960 --> 00:15:00,640 Speaker 4: AI Verrina saying Creato Aic, it's good to be here 306 00:15:00,640 --> 00:15:04,440 Speaker 4: in person with you, sony conversation we've had remotely keep 307 00:15:04,480 --> 00:15:14,240 Speaker 4: in touch on what actually happens in your summit. Okay, 308 00:15:14,240 --> 00:15:16,760 Speaker 4: time for talking tech and use out just before the show. 309 00:15:16,840 --> 00:15:19,680 Speaker 4: AI startup and Fropic will be one of the first 310 00:15:19,680 --> 00:15:24,000 Speaker 4: companies to use new chips from Google, deepening their partnership 311 00:15:24,040 --> 00:15:27,280 Speaker 4: after a recent three billion dollar cloud computing agreement. And 312 00:15:27,360 --> 00:15:30,520 Speaker 4: Thropic will deploy the chips to help power its large 313 00:15:30,560 --> 00:15:33,920 Speaker 4: language model clause. Remember they also have a deal with 314 00:15:34,040 --> 00:15:39,000 Speaker 4: AWS and Amazon speaking of is offering Prime subscribers discounted 315 00:15:39,040 --> 00:15:41,600 Speaker 4: one medical memberships. The new deal will cut a one 316 00:15:41,640 --> 00:15:44,840 Speaker 4: medical membership by one hundred dollars to ninety nine dollars 317 00:15:44,840 --> 00:15:49,080 Speaker 4: a year. One Medical is a centerpiece of Amazon's healthcare operation, 318 00:15:49,200 --> 00:15:53,040 Speaker 4: and Microsoft is offering US politicians and campaign groups at 319 00:15:53,040 --> 00:15:56,160 Speaker 4: all aim to help fight the rise of deep fakes 320 00:15:56,360 --> 00:15:59,240 Speaker 4: ahead of the twenty twenty four presidential election. The new 321 00:15:59,240 --> 00:16:02,359 Speaker 4: tool will allow parties to authenticate their videos and photos 322 00:16:02,480 --> 00:16:06,920 Speaker 4: who are so called watermark credentials using cryptography car. 323 00:16:07,480 --> 00:16:10,240 Speaker 5: Meanwhile, ed we move away well from the future of 324 00:16:10,280 --> 00:16:12,080 Speaker 5: AI to what's happening in the here and now, the 325 00:16:12,120 --> 00:16:14,920 Speaker 5: downfall of we work. It's making its first bankruptcy court 326 00:16:14,920 --> 00:16:18,680 Speaker 5: appearance today seeking to advance that restructuring proposal that could 327 00:16:18,680 --> 00:16:21,560 Speaker 5: cut three billion dollars in debt and actually shrink the company's. 328 00:16:21,280 --> 00:16:22,200 Speaker 3: Real estate footprint. 329 00:16:22,480 --> 00:16:25,320 Speaker 5: Then once really high flying real estate business far from 330 00:16:25,320 --> 00:16:29,400 Speaker 5: bankruptcy just two years after going public and springing Bloomberg's 331 00:16:29,400 --> 00:16:32,120 Speaker 5: Ellen Hewitt, who was there for the highs, who were 332 00:16:32,160 --> 00:16:35,920 Speaker 5: there for the crash, and ultimately we see the repercussions 333 00:16:35,960 --> 00:16:39,960 Speaker 5: for those left holding what is the assets thus far, Ellen, 334 00:16:41,200 --> 00:16:44,760 Speaker 5: who's really being implicated by this bankruptcy filing? 335 00:16:46,000 --> 00:16:47,840 Speaker 11: Well, the people who are really being affected, I mean, 336 00:16:47,880 --> 00:16:52,720 Speaker 11: it seems like reputationally Starffink is really being hurt by this. 337 00:16:53,200 --> 00:16:55,840 Speaker 11: You know, they've obviously poured billions of dollars into this 338 00:16:55,920 --> 00:16:59,720 Speaker 11: company over the years, and now it's almost like a 339 00:16:59,720 --> 00:17:02,520 Speaker 11: crown jewel of their bad calls. Right, it's going to 340 00:17:02,560 --> 00:17:05,400 Speaker 11: be the one that people always refer to and say like, wow, 341 00:17:05,440 --> 00:17:08,560 Speaker 11: that was really not a good bet. And I think 342 00:17:08,760 --> 00:17:11,080 Speaker 11: although there's a future for We Work, you know, depending 343 00:17:11,119 --> 00:17:15,280 Speaker 11: on how this bankruptcy process goes, I think reputationally, it's 344 00:17:15,320 --> 00:17:18,480 Speaker 11: been really hard for SoftBank and for a Masochi son. 345 00:17:18,760 --> 00:17:22,080 Speaker 4: You have chronicled every step basically of we Work. You 346 00:17:22,080 --> 00:17:25,199 Speaker 4: have a peace out, look back at the ten defining moments. 347 00:17:25,200 --> 00:17:27,320 Speaker 4: We don't have time for all ten. But what are 348 00:17:27,320 --> 00:17:28,960 Speaker 4: the kind of top twos your mind? 349 00:17:29,640 --> 00:17:33,720 Speaker 11: Well, people forget how fun We Work was in the 350 00:17:34,080 --> 00:17:36,720 Speaker 11: sort of the period between like twenty fourteen and twenty nineteen. 351 00:17:36,800 --> 00:17:41,000 Speaker 11: I mean it was first this extremely energetic, raw, raw, 352 00:17:41,240 --> 00:17:44,120 Speaker 11: super fun company that was really trying to make work fun. 353 00:17:44,200 --> 00:17:46,679 Speaker 11: So if you can picture it, you know, going to 354 00:17:46,840 --> 00:17:50,199 Speaker 11: summer camp, which was their big annual blowout both for 355 00:17:50,280 --> 00:17:52,240 Speaker 11: all their employees as well as a bunch of members. 356 00:17:52,440 --> 00:17:54,960 Speaker 11: They would come gather for a weekend in these like 357 00:17:55,000 --> 00:17:59,000 Speaker 11: beautiful settings in nature and have basically a music festival. 358 00:17:59,680 --> 00:18:02,920 Speaker 11: There were speakers like Deepak Chopra, there were headlining musical acts, 359 00:18:02,960 --> 00:18:05,840 Speaker 11: there was alcohol everywhere. And if you talk to people 360 00:18:05,880 --> 00:18:07,440 Speaker 11: who used to work at Weework, they were like, yeah, 361 00:18:08,040 --> 00:18:11,160 Speaker 11: that was really fun, and it's imagine going to Coachella, 362 00:18:11,200 --> 00:18:13,159 Speaker 11: but it's thrown by your boss. It's like one of 363 00:18:13,160 --> 00:18:16,240 Speaker 11: these weird things that I think captures the thing that 364 00:18:16,280 --> 00:18:18,520 Speaker 11: we Work was trying to do, which was blur the 365 00:18:18,560 --> 00:18:21,640 Speaker 11: lines between work and your personal life. 366 00:18:21,960 --> 00:18:26,240 Speaker 5: What's interesting is Masioshi's son sort of almost took on 367 00:18:27,160 --> 00:18:30,919 Speaker 5: sort of some of the blame over Adam himself Newman, 368 00:18:31,080 --> 00:18:34,399 Speaker 5: sort of realizing them perhaps by thrusting so much money, 369 00:18:34,440 --> 00:18:38,040 Speaker 5: so much disire for him to go out build be ambitious, 370 00:18:38,440 --> 00:18:41,440 Speaker 5: it pushed Adam too far. Do you think that has 371 00:18:41,560 --> 00:18:43,840 Speaker 5: credence to it? 372 00:18:43,480 --> 00:18:44,720 Speaker 3: I think it does. 373 00:18:44,800 --> 00:18:46,840 Speaker 11: I mean, in some ways, one way to look at 374 00:18:46,880 --> 00:18:50,360 Speaker 11: Adam is that he's someone who was very good, intentionally 375 00:18:50,480 --> 00:18:53,720 Speaker 11: or not, at taking advantage of the venture capital financial 376 00:18:53,760 --> 00:18:57,000 Speaker 11: ecosystem of the mid to late twenty tens. Like he 377 00:18:57,119 --> 00:19:00,160 Speaker 11: realized that there were people out there like Masa who 378 00:19:00,160 --> 00:19:02,879 Speaker 11: were willing to write enormous checks for people who were 379 00:19:02,920 --> 00:19:05,399 Speaker 11: willing to put so much energy into growing a company 380 00:19:05,440 --> 00:19:07,960 Speaker 11: as fast as Adam was able to grow. We work 381 00:19:08,320 --> 00:19:11,240 Speaker 11: so you end up with someone who you know already 382 00:19:11,320 --> 00:19:14,240 Speaker 11: had the tendencies to want to go big and go crazy, 383 00:19:14,280 --> 00:19:16,720 Speaker 11: and then there's someone like Masa who really came along 384 00:19:16,720 --> 00:19:20,200 Speaker 11: and enabled that with enormous amounts of money. It does 385 00:19:20,240 --> 00:19:22,919 Speaker 11: seem like both of them, you know, they're not certainly 386 00:19:22,920 --> 00:19:26,240 Speaker 11: they'll have futures in business. Adam's future and business certainly 387 00:19:26,280 --> 00:19:28,720 Speaker 11: seems quite strong. He's been able to raise hundreds of 388 00:19:28,760 --> 00:19:32,840 Speaker 11: millions of dollars for his new ventures and his reputation. 389 00:19:33,160 --> 00:19:35,119 Speaker 11: Of course, this will always be part of his story, 390 00:19:35,160 --> 00:19:37,879 Speaker 11: but I think he's emerged pretty unscathed. 391 00:19:38,359 --> 00:19:40,840 Speaker 4: Bloomberg, Zell, and hut all over. We work for years. 392 00:19:40,880 --> 00:19:44,360 Speaker 4: Today's day one of bankruptcy court. More to come. Thank 393 00:19:44,400 --> 00:19:44,920 Speaker 4: you so much. 394 00:19:51,960 --> 00:19:54,200 Speaker 3: Welcome back to Blue Meg Technology. I'm Caroline Hyde. 395 00:19:54,040 --> 00:19:55,680 Speaker 4: And I Med Ludlow, and it's time for a quick 396 00:19:55,760 --> 00:19:59,640 Speaker 4: check on markets in Team Technology. I've got some devastating 397 00:19:59,720 --> 00:20:02,880 Speaker 4: new After eight straight days of gains on the Nasdaq 398 00:20:02,960 --> 00:20:05,720 Speaker 4: one hundred, the longest streak of gains going back to 399 00:20:05,800 --> 00:20:09,240 Speaker 4: November twenty twenty one. As it stands, the Nasdaq one 400 00:20:09,320 --> 00:20:11,920 Speaker 4: hundred in this session is down by a few tens 401 00:20:11,920 --> 00:20:14,400 Speaker 4: of one percent. The hot streak is over. But what's 402 00:20:14,400 --> 00:20:16,159 Speaker 4: so astonishing, Caroline? This week, while I've been in New 403 00:20:16,240 --> 00:20:17,800 Speaker 4: York with you, we talked about how much of the 404 00:20:17,880 --> 00:20:21,159 Speaker 4: heavy lifting the megacaps have done in the context of earnings. 405 00:20:21,280 --> 00:20:24,480 Speaker 4: Some upside their Nvidia still to report, but some of 406 00:20:24,480 --> 00:20:27,440 Speaker 4: the higher multiple software names they've been in the red. 407 00:20:27,480 --> 00:20:30,000 Speaker 4: And we've seen this situation where the vast majority of 408 00:20:30,080 --> 00:20:32,240 Speaker 4: names in the Nasdaq one hundred have been in the 409 00:20:32,280 --> 00:20:35,399 Speaker 4: red in any given session, while few of the megacaps 410 00:20:35,480 --> 00:20:38,600 Speaker 4: keep the index overall buoyant. The focus, of course, is 411 00:20:38,640 --> 00:20:41,359 Speaker 4: switching to the macrod is switching to the geopolitics and 412 00:20:41,400 --> 00:20:43,760 Speaker 4: what the Fed will or won't do at the start 413 00:20:43,800 --> 00:20:47,280 Speaker 4: of twenty twenty four. But watch this screen going towards 414 00:20:47,320 --> 00:20:49,600 Speaker 4: the end of the session. Will we snap eight days 415 00:20:49,600 --> 00:20:51,440 Speaker 4: of gains or will we get a ninth day? I'm 416 00:20:51,440 --> 00:20:53,520 Speaker 4: ever the optimist you always are. 417 00:20:53,600 --> 00:20:55,160 Speaker 5: You have to be in the world attach quite often. 418 00:20:55,160 --> 00:20:57,560 Speaker 5: But meanwhile, will someone's got reason to be optimistic? The 419 00:20:57,600 --> 00:21:01,320 Speaker 5: IT infrastructure provider Kindrel celebrated second anniversary. If it's spin 420 00:21:01,400 --> 00:21:04,600 Speaker 5: out from IBM, Better than expected financial results. Lik shares 421 00:21:04,640 --> 00:21:06,320 Speaker 5: have actually been popping at one point, up as much 422 00:21:06,359 --> 00:21:08,040 Speaker 5: as fifteen percent, biggest in to. 423 00:21:08,080 --> 00:21:09,200 Speaker 3: Day rise since August. 424 00:21:09,440 --> 00:21:11,520 Speaker 5: The company boosted its earnings outlook for the full year 425 00:21:11,600 --> 00:21:14,600 Speaker 5: post a second quarter revenue and adjusted EBIT DAH ahead 426 00:21:14,720 --> 00:21:18,320 Speaker 5: of street consensus. Kendrol CEO Martin Schroeder is with us 427 00:21:18,760 --> 00:21:21,000 Speaker 5: just down in midtown Manhattan. It's good to have some 428 00:21:21,040 --> 00:21:24,040 Speaker 5: time with you, Martin. And look, this is a turnaround story. 429 00:21:24,240 --> 00:21:26,840 Speaker 5: You seem to be doing it quicker than expected. Revenue 430 00:21:26,880 --> 00:21:29,359 Speaker 5: is still falling. You anticipate that you could get that 431 00:21:29,480 --> 00:21:32,320 Speaker 5: into positive territory, maybe by what next year. 432 00:21:33,560 --> 00:21:37,240 Speaker 12: We do thank you for the opportunity. Look, we've said 433 00:21:37,359 --> 00:21:39,919 Speaker 12: already for two years now that we will get this 434 00:21:40,040 --> 00:21:43,920 Speaker 12: business to grow again in calendar twenty five, and now 435 00:21:43,960 --> 00:21:46,560 Speaker 12: two years into the journey, we feel better about that 436 00:21:46,720 --> 00:21:49,840 Speaker 12: than ever before. This year and a little bit next 437 00:21:49,920 --> 00:21:52,440 Speaker 12: year as well, is going for us to be continued 438 00:21:52,480 --> 00:21:57,679 Speaker 12: focus on engineering, if you will, decline around things that 439 00:21:57,800 --> 00:22:00,280 Speaker 12: just don't make sense for our business, and we see 440 00:22:00,359 --> 00:22:03,680 Speaker 12: the benefit of that in the profit progress that we've 441 00:22:03,720 --> 00:22:06,520 Speaker 12: made now. At the same time, we are seeing growth 442 00:22:06,560 --> 00:22:09,639 Speaker 12: and strong revenue growth in areas that we want to 443 00:22:09,760 --> 00:22:12,560 Speaker 12: continue and we expect to continue over the long haul. 444 00:22:12,640 --> 00:22:17,119 Speaker 12: So our Kindrell consult business is growing quite well. Elements 445 00:22:17,320 --> 00:22:22,440 Speaker 12: elements of our business where we are aligned with our customers, 446 00:22:22,560 --> 00:22:25,919 Speaker 12: long term secular trends around investing in data in AI 447 00:22:26,440 --> 00:22:29,160 Speaker 12: and hybrid cloud and et cetera, et cetera, they're all 448 00:22:29,200 --> 00:22:30,600 Speaker 12: showing great, great growth. 449 00:22:30,640 --> 00:22:33,440 Speaker 6: So we're in a position as we said. 450 00:22:33,280 --> 00:22:36,560 Speaker 12: We would be, where we're engineering declines in part of 451 00:22:36,560 --> 00:22:39,600 Speaker 12: our business which just didn't make sense for us, and 452 00:22:39,680 --> 00:22:42,680 Speaker 12: on all the while building businesses. So we get back 453 00:22:42,720 --> 00:22:45,960 Speaker 12: to long term sustainable growth in calendar twenty five. 454 00:22:46,240 --> 00:22:51,480 Speaker 5: When I think about tech infrastructure, when I think about data, AI, security, 455 00:22:52,080 --> 00:22:55,879 Speaker 5: they sound pretty necessary. Ultimately, there are any macro headwinds 456 00:22:55,880 --> 00:22:58,399 Speaker 5: that affect you and the growth that you're currently seeing 457 00:22:58,480 --> 00:23:00,359 Speaker 5: or no, Yeah. 458 00:23:00,240 --> 00:23:01,199 Speaker 6: It's a great question. 459 00:23:01,280 --> 00:23:03,399 Speaker 12: Look that the nature of what we do is running 460 00:23:03,440 --> 00:23:07,800 Speaker 12: the mission critical infrastructure of the companies that run the world, 461 00:23:07,840 --> 00:23:12,159 Speaker 12: the banking systems, the airline systems, the telecom systems, the 462 00:23:12,200 --> 00:23:16,200 Speaker 12: supply chains, and so in that nature of that work 463 00:23:16,320 --> 00:23:20,080 Speaker 12: is that regardless of the macro environment, you need to 464 00:23:20,119 --> 00:23:23,639 Speaker 12: run your infrastructure. And fortunately, as you would expect from 465 00:23:23,800 --> 00:23:28,000 Speaker 12: the world's largest infrastructure services provider. We're also helping our 466 00:23:28,040 --> 00:23:32,440 Speaker 12: customers not only make sure they are infrastructure stays secure, 467 00:23:32,600 --> 00:23:36,920 Speaker 12: stays resilient, but we're also helping them position themselves for 468 00:23:37,040 --> 00:23:40,320 Speaker 12: those long term secular trends that they want to continue 469 00:23:40,320 --> 00:23:43,199 Speaker 12: to invest in, regardless of the macro environment, so that 470 00:23:43,240 --> 00:23:46,600 Speaker 12: they're ready for what comes next. So we spend a 471 00:23:46,600 --> 00:23:48,879 Speaker 12: lot of time with our customers helping them. For instance, 472 00:23:48,960 --> 00:23:51,000 Speaker 12: with AI, we spend a lot of time with our 473 00:23:51,040 --> 00:23:54,800 Speaker 12: customers getting the data architectures right so they can take 474 00:23:54,840 --> 00:23:58,640 Speaker 12: advantage of that innovation. And obviously we spend a lot 475 00:23:58,640 --> 00:24:00,720 Speaker 12: of time with our customers helping them move on to 476 00:24:00,880 --> 00:24:03,640 Speaker 12: clouds to take advantage of the innovation they see there 477 00:24:03,680 --> 00:24:07,000 Speaker 12: to run their businesses. So while while the nature of 478 00:24:07,040 --> 00:24:11,480 Speaker 12: the work remains sort of resilient, if you will, to 479 00:24:11,600 --> 00:24:16,800 Speaker 12: the macro, because we're not really we're not really a 480 00:24:16,960 --> 00:24:19,000 Speaker 12: something that you decide if you need or you don't 481 00:24:19,000 --> 00:24:22,119 Speaker 12: need you have to have an infrastructure, the nature of 482 00:24:22,160 --> 00:24:25,879 Speaker 12: what the work we do also helps them position themselves 483 00:24:25,920 --> 00:24:29,159 Speaker 12: for the future. We're just not a discretionary item, and 484 00:24:29,480 --> 00:24:31,680 Speaker 12: the nature of the work we do is not discretionary 485 00:24:31,720 --> 00:24:32,640 Speaker 12: for their future. 486 00:24:32,359 --> 00:24:34,840 Speaker 4: Either the nature of the work you do and those 487 00:24:34,960 --> 00:24:37,080 Speaker 4: doing it. What put Kindre on the map for me 488 00:24:37,080 --> 00:24:39,119 Speaker 4: at the beginning of the year, Martin, was that you 489 00:24:39,840 --> 00:24:42,560 Speaker 4: confirm to our own brody Ford you would cut a 490 00:24:42,600 --> 00:24:45,920 Speaker 4: small amount of headcount, but that in tern put on 491 00:24:45,960 --> 00:24:48,359 Speaker 4: the map that you had ninety thousand. 492 00:24:47,920 --> 00:24:49,000 Speaker 8: People working for you. 493 00:24:50,040 --> 00:24:53,880 Speaker 4: How has the progress of those reductions been and why 494 00:24:53,920 --> 00:24:56,679 Speaker 4: do you need ninety thousand stuff? That's a lot of people. 495 00:24:57,520 --> 00:24:59,320 Speaker 12: Yeah, yeah, it just look it is a lot. But 496 00:24:59,359 --> 00:25:02,840 Speaker 12: we're big. We're a big company. We're the largest infrastructure 497 00:25:02,880 --> 00:25:06,840 Speaker 12: services provider, and our customers rely on us again to 498 00:25:06,920 --> 00:25:10,000 Speaker 12: run their most important mission critical what I would call 499 00:25:10,040 --> 00:25:12,600 Speaker 12: hearts and lungs. Now out of the ninety which is 500 00:25:12,640 --> 00:25:15,560 Speaker 12: the number we were spun out with, about that number 501 00:25:15,640 --> 00:25:18,840 Speaker 12: spun out of IBM, so we you know, you don't 502 00:25:18,840 --> 00:25:21,240 Speaker 12: get to pack your own suitcase on this journey. 503 00:25:21,280 --> 00:25:22,480 Speaker 6: So that was what we had. 504 00:25:22,800 --> 00:25:26,080 Speaker 12: Now out of that, you know, roughly ninety about two 505 00:25:26,119 --> 00:25:29,520 Speaker 12: thirds of those people are delivering every day to customers. 506 00:25:29,560 --> 00:25:31,800 Speaker 12: And that's what's so important to customers that they have 507 00:25:31,920 --> 00:25:35,119 Speaker 12: the people that they trust delivering every day. And so 508 00:25:35,440 --> 00:25:37,280 Speaker 12: we spend a lot of time making sure that our 509 00:25:37,320 --> 00:25:40,800 Speaker 12: customers and the teams they trust have the right skills, 510 00:25:40,840 --> 00:25:43,560 Speaker 12: they're in the right place, and they're delivering every day 511 00:25:43,960 --> 00:25:47,760 Speaker 12: we have Earlier this year as we came out of IBM, 512 00:25:48,440 --> 00:25:50,720 Speaker 12: as we hit our one year anniversary, we were able 513 00:25:50,760 --> 00:25:54,399 Speaker 12: to start to simplify some of the processes we inherited, 514 00:25:54,760 --> 00:25:57,560 Speaker 12: and we took a big step last weekend, which was 515 00:25:57,680 --> 00:26:00,720 Speaker 12: actually the two year anniversary date, took a big step 516 00:26:00,800 --> 00:26:04,800 Speaker 12: by moving off of now all of the transition service 517 00:26:04,840 --> 00:26:07,560 Speaker 12: agreements that IBM created for us, so we are now 518 00:26:07,600 --> 00:26:12,240 Speaker 12: on an all cloud platforms. We've reduced the application count 519 00:26:12,760 --> 00:26:15,600 Speaker 12: from what we inherited, which was over eighteen hundred to 520 00:26:15,720 --> 00:26:19,439 Speaker 12: now in the dozens and that allows us now to 521 00:26:19,520 --> 00:26:23,119 Speaker 12: rethink how the processes that we inherited, how can they 522 00:26:23,240 --> 00:26:26,959 Speaker 12: really be changed and transformed. 523 00:26:26,320 --> 00:26:28,000 Speaker 8: To support a services business. 524 00:26:28,000 --> 00:26:33,680 Speaker 12: So for us, while we were delta hand, we've been 525 00:26:33,720 --> 00:26:38,639 Speaker 12: able to use AI automate workloads so that we're not 526 00:26:38,920 --> 00:26:43,000 Speaker 12: as needful to go out and build skills with external hires. 527 00:26:43,000 --> 00:26:45,040 Speaker 12: We can use the people we free up and put 528 00:26:45,040 --> 00:26:48,480 Speaker 12: them into the more important, quite frankly, more valuable work 529 00:26:48,480 --> 00:26:51,480 Speaker 12: that we're doing now, and we now have an opportunity 530 00:26:51,520 --> 00:26:54,119 Speaker 12: as we get through as we are now through the TSA's, 531 00:26:54,119 --> 00:26:57,120 Speaker 12: we have an opportunity to really think how we run 532 00:26:57,160 --> 00:26:59,479 Speaker 12: the business and how do we build how do we 533 00:26:59,520 --> 00:27:03,280 Speaker 12: build fit for purpose processes for the kind of services 534 00:27:03,280 --> 00:27:06,600 Speaker 12: business we run as opposed to the more product orated 535 00:27:06,680 --> 00:27:07,880 Speaker 12: business that we came from. 536 00:27:08,080 --> 00:27:10,639 Speaker 4: Martin Shares up eleven percent, on track for their biggest 537 00:27:10,680 --> 00:27:12,840 Speaker 4: jump since August. A big part of that is the 538 00:27:12,880 --> 00:27:15,320 Speaker 4: AI story. As you outlined, you know, in the cloud space, 539 00:27:15,359 --> 00:27:18,679 Speaker 4: there's evidence that companies being small kind of dialed it 540 00:27:18,720 --> 00:27:21,639 Speaker 4: back in some areas and reallocated spend for compute on 541 00:27:21,680 --> 00:27:24,600 Speaker 4: the AI side. Does that show up in infrastructure as well? 542 00:27:26,240 --> 00:27:29,000 Speaker 12: The work that we do and we're helping our customers 543 00:27:29,040 --> 00:27:34,720 Speaker 12: with is really getting their infrastructure ready to undertake first 544 00:27:34,840 --> 00:27:37,360 Speaker 12: the science projects that they want to try. And I'll 545 00:27:37,359 --> 00:27:40,160 Speaker 12: call it generative you know what they call generative AI now. 546 00:27:40,440 --> 00:27:43,439 Speaker 12: But we've been working with customers for quite a while 547 00:27:43,880 --> 00:27:46,840 Speaker 12: on helping them implement machine learning and all the things 548 00:27:46,840 --> 00:27:49,480 Speaker 12: that we use to run our business because they take 549 00:27:49,520 --> 00:27:53,680 Speaker 12: advantage our customers take advantage of our AI today by 550 00:27:53,960 --> 00:27:58,760 Speaker 12: helping them stay at the high end of world class 551 00:27:58,800 --> 00:28:01,000 Speaker 12: based on all the technology you say of implemented and 552 00:28:01,040 --> 00:28:03,320 Speaker 12: we automate all of that for them so that they 553 00:28:03,359 --> 00:28:09,680 Speaker 12: have the best in class implementations of Microsoft and all 554 00:28:09,680 --> 00:28:12,600 Speaker 12: the other all the other technologies that they're using. So 555 00:28:12,640 --> 00:28:15,280 Speaker 12: they've been relying on us to give them insights about 556 00:28:15,280 --> 00:28:18,280 Speaker 12: their infrastructure and now that now that they see we 557 00:28:18,359 --> 00:28:22,000 Speaker 12: are kind of customtomer zero if you will, for AI 558 00:28:22,119 --> 00:28:24,520 Speaker 12: and for the use of machine learning. We're also helping 559 00:28:24,560 --> 00:28:27,920 Speaker 12: them now with our partners, get ready to implement their 560 00:28:27,960 --> 00:28:31,000 Speaker 12: own machine learning, getting ready to implement generative AI and 561 00:28:31,080 --> 00:28:33,520 Speaker 12: all the work that you need again with our workloads, 562 00:28:33,560 --> 00:28:35,879 Speaker 12: all the work you need to do around data architecture 563 00:28:35,880 --> 00:28:37,320 Speaker 12: and security and resiliency. 564 00:28:37,400 --> 00:28:40,360 Speaker 4: Yes, kendro Ceo Martin Schroezer in the market buying that 565 00:28:40,440 --> 00:28:42,480 Speaker 4: with shares on track for the bigges jump since August, 566 00:28:42,560 --> 00:28:44,960 Speaker 4: Thank you so much. Now, coming up on Boomboy technology, 567 00:28:44,960 --> 00:28:47,880 Speaker 4: we'll talk more about AI, but particularly investing in AI 568 00:28:48,000 --> 00:28:51,200 Speaker 4: with Sequoia a capital partner, Constantine Buer that's coming out, 569 00:28:51,280 --> 00:28:51,920 Speaker 4: carc well. 570 00:28:51,800 --> 00:28:54,480 Speaker 5: I'SOK another company where shares are popping. If you're looking 571 00:28:54,480 --> 00:28:57,400 Speaker 5: in the ADRs of ady And and Dutch Payments company, 572 00:28:57,400 --> 00:29:00,240 Speaker 5: which is absolutely battered in August when it came with 573 00:29:00,280 --> 00:29:03,000 Speaker 5: its numbers that just twenty two percent growth wasn't going 574 00:29:03,080 --> 00:29:03,920 Speaker 5: to be cunning anymore. 575 00:29:03,960 --> 00:29:05,120 Speaker 3: The competition, the worry. 576 00:29:05,360 --> 00:29:07,800 Speaker 5: They needed to convince investors to buy in Today as 577 00:29:07,840 --> 00:29:09,800 Speaker 5: their investor Day, they seem to be doing that. Shares 578 00:29:09,880 --> 00:29:12,840 Speaker 5: rocketing some thirty one percent looks still half of where 579 00:29:12,840 --> 00:29:15,280 Speaker 5: they traded back in August, but they are showing that 580 00:29:15,320 --> 00:29:17,240 Speaker 5: there's going to be aiming for low twenties to high 581 00:29:17,280 --> 00:29:20,680 Speaker 5: twenties percentage annual revenue growth up to twenty twenty six, 582 00:29:20,840 --> 00:29:24,160 Speaker 5: improving ebidal margin to levels above fifty percent in that 583 00:29:24,240 --> 00:29:24,640 Speaker 5: year too. 584 00:29:24,840 --> 00:29:32,920 Speaker 3: This is a room met technology. 585 00:29:41,360 --> 00:29:44,120 Speaker 5: Time now for our VC roundup first up, Hillhouse chairman 586 00:29:44,280 --> 00:29:47,080 Speaker 5: Zanglie said that the next few years could produce quote 587 00:29:47,200 --> 00:29:49,720 Speaker 5: the best vintages for private equity in Asia and that 588 00:29:49,800 --> 00:29:52,719 Speaker 5: corporate management teams are maturing in the region now. Hillhouse 589 00:29:52,800 --> 00:29:55,640 Speaker 5: is known for investing in traditional companies which use technology 590 00:29:55,680 --> 00:30:00,000 Speaker 5: to improve business efficiency. Meanwhile, Coso Management has marked down 591 00:30:00,240 --> 00:30:03,320 Speaker 5: it's stake in Opense by ninety percent. It's implying the 592 00:30:03,320 --> 00:30:05,240 Speaker 5: company is now valued at one point four billion or 593 00:30:05,320 --> 00:30:08,160 Speaker 5: less on paper. According to the information that's signing a document, 594 00:30:08,320 --> 00:30:10,000 Speaker 5: coach you slashed the value of its one hundred and 595 00:30:10,040 --> 00:30:13,480 Speaker 5: twenty million steak in the NFT marketplace just thirteen million 596 00:30:13,720 --> 00:30:15,280 Speaker 5: as of the second quarter of this year. 597 00:30:15,880 --> 00:30:16,840 Speaker 3: I mean, while Cheryl. 598 00:30:16,680 --> 00:30:20,320 Speaker 5: Sandberg is back when she's backing women's health tech startup Circle, 599 00:30:20,640 --> 00:30:23,520 Speaker 5: one of the first investments in the former Meta COO 600 00:30:23,560 --> 00:30:26,320 Speaker 5: is making through her new venture capital fund. Circle is 601 00:30:26,320 --> 00:30:29,680 Speaker 5: a San Francisco based startup using AI to analyze biomedical 602 00:30:29,680 --> 00:30:33,800 Speaker 5: and genomics data with the goal of improving women's healthcare. 603 00:30:34,280 --> 00:30:34,360 Speaker 8: ED. 604 00:30:34,680 --> 00:30:36,680 Speaker 4: All right, let's stick in the world adventure today's VC 605 00:30:36,800 --> 00:30:40,120 Speaker 4: spotlight and bring in Sequoia capital partner Constantine Buler. 606 00:30:40,200 --> 00:30:41,600 Speaker 3: And it's a good. 607 00:30:41,400 --> 00:30:43,920 Speaker 4: Time to catch up, right, Caroline. And I think of 608 00:30:43,920 --> 00:30:48,920 Speaker 4: Sequoia as this juggernaut of capital deployment, venture back deals 609 00:30:49,120 --> 00:30:51,400 Speaker 4: and with you we think about AI. And I know 610 00:30:51,440 --> 00:30:54,120 Speaker 4: you've actually been very busy since last we spoke. What 611 00:30:54,200 --> 00:30:56,640 Speaker 4: have you been writing checks for? Absolutely? 612 00:30:56,960 --> 00:30:57,040 Speaker 1: Ed? 613 00:30:57,120 --> 00:31:00,000 Speaker 13: Caroline, thanks so much for having me back on. It's 614 00:31:00,080 --> 00:31:02,880 Speaker 13: wonderful to be here. So last time we caught up, 615 00:31:03,280 --> 00:31:06,200 Speaker 13: you asked the question, how is Sequoia going to lean 616 00:31:06,200 --> 00:31:09,000 Speaker 13: into this moment of investing? Because Sequoya has been in 617 00:31:09,000 --> 00:31:11,800 Speaker 13: the AI space for decades, now, But there's this amazing 618 00:31:11,840 --> 00:31:16,360 Speaker 13: inflection in the generative AI revolution, and I'm very excited 619 00:31:16,400 --> 00:31:20,560 Speaker 13: to share that we've leaned in by backing excellent founders 620 00:31:20,880 --> 00:31:24,760 Speaker 13: that are solving real customer problems. So this year alone, 621 00:31:24,800 --> 00:31:29,560 Speaker 13: we've made twenty investments in the AI space. That's about 622 00:31:29,800 --> 00:31:33,720 Speaker 13: sixty percent of our early stage net new investment. 623 00:31:33,760 --> 00:31:35,720 Speaker 4: Well, real quick, how does that differ from what you 624 00:31:35,760 --> 00:31:38,160 Speaker 4: did last ya for example? How is that a rampop 625 00:31:38,200 --> 00:31:40,200 Speaker 4: inactivity in investing in AI? 626 00:31:40,720 --> 00:31:43,640 Speaker 13: It's even more than last year. We've always had a 627 00:31:43,640 --> 00:31:46,800 Speaker 13: focus on AI, back to nineteen ninety three with Nvidio, 628 00:31:46,920 --> 00:31:50,120 Speaker 13: which is one of these absolute cornerstones of the entire 629 00:31:50,280 --> 00:31:53,200 Speaker 13: AI field. We've always had an eye on AI, but 630 00:31:53,440 --> 00:31:56,440 Speaker 13: there's been this exciting inflection point with generative AI that's 631 00:31:56,480 --> 00:31:58,920 Speaker 13: allowed us to lean into even more companies in twenty 632 00:31:58,960 --> 00:32:03,400 Speaker 13: twenty three, and this has allowed us to actually see 633 00:32:03,720 --> 00:32:07,160 Speaker 13: users leaning into these products and using them actively. So 634 00:32:07,200 --> 00:32:11,960 Speaker 13: now we're seeing lawyers leveraging AI and our product Harvey 635 00:32:12,200 --> 00:32:16,600 Speaker 13: in order to generate contracts. We see teams using dust 636 00:32:17,120 --> 00:32:20,800 Speaker 13: in order to make personal assistance that automate mundane tasks, 637 00:32:21,160 --> 00:32:24,840 Speaker 13: and we see developers using hugging face to implement open 638 00:32:24,840 --> 00:32:28,680 Speaker 13: source into hundreds thousands of projects. Overall, it feels like 639 00:32:28,720 --> 00:32:31,400 Speaker 13: AI has landed and we've moved out of hype and 640 00:32:31,480 --> 00:32:32,120 Speaker 13: into reality. 641 00:32:33,560 --> 00:32:35,480 Speaker 5: Well, was any of the valuations of which you were 642 00:32:35,480 --> 00:32:37,680 Speaker 5: writing the checks feeling a little hype? 643 00:32:39,360 --> 00:32:42,520 Speaker 13: No doubt, valuations can be very high in the AI space. 644 00:32:42,920 --> 00:32:45,320 Speaker 13: We've tried to stick with fundamentals, and one of the 645 00:32:45,360 --> 00:32:48,000 Speaker 13: things that we've found really helpful is a lot of 646 00:32:48,040 --> 00:32:51,360 Speaker 13: AI builders, especially the ones we work with, appreciate the 647 00:32:51,360 --> 00:32:54,280 Speaker 13: fact that building an AI company is building a company. 648 00:32:54,920 --> 00:32:56,680 Speaker 13: So they look to Sequoia and they look at the 649 00:32:56,720 --> 00:33:00,480 Speaker 13: track record and they realize a Sequoia backed company is 650 00:33:00,640 --> 00:33:04,120 Speaker 13: four times more likely to go from seed to Series 651 00:33:04,160 --> 00:33:07,200 Speaker 13: A than if it weren't backed by Sequoia, it's twice 652 00:33:07,200 --> 00:33:09,120 Speaker 13: as likely to go from A to Series B. 653 00:33:09,600 --> 00:33:10,360 Speaker 6: Why do I say this? 654 00:33:10,840 --> 00:33:13,400 Speaker 13: The point is that an AI company is a company, 655 00:33:13,840 --> 00:33:16,240 Speaker 13: and so the fundamentals of company building that we've learned 656 00:33:16,240 --> 00:33:19,280 Speaker 13: over the past many decades with AI companies and Internet 657 00:33:19,320 --> 00:33:23,200 Speaker 13: companies and cloud companies and mobile companies are translating very well. 658 00:33:23,480 --> 00:33:25,640 Speaker 13: And that's led to a lot of our founders realizing 659 00:33:25,640 --> 00:33:28,560 Speaker 13: the COO advantage and valuations that are much more reasonable 660 00:33:28,800 --> 00:33:31,320 Speaker 13: within the ones that there's an interesting triangle here. We 661 00:33:31,440 --> 00:33:35,840 Speaker 13: started the week with open AI's developers conference. You Sequoia, 662 00:33:36,200 --> 00:33:38,880 Speaker 13: we're an earlier investor in open ai, and a big 663 00:33:38,920 --> 00:33:41,120 Speaker 13: part of their pitch was kind of creates your economy. 664 00:33:41,280 --> 00:33:44,200 Speaker 13: In other words, they're going to start offering stuff that 665 00:33:44,280 --> 00:33:46,840 Speaker 13: will help others build an AI company. Is that your 666 00:33:46,880 --> 00:33:50,760 Speaker 13: assessment as well? Yes, So we've been investors in open 667 00:33:50,800 --> 00:33:53,560 Speaker 13: ai for a while. We invested back in twenty twenty one, 668 00:33:53,920 --> 00:33:57,720 Speaker 13: before this amazing movement really started to inflect. And what 669 00:33:57,760 --> 00:34:01,520 Speaker 13: they've done exceptionally well is leaning too the developer, per 670 00:34:01,560 --> 00:34:04,680 Speaker 13: your point ed, So they understand that the creator has 671 00:34:04,720 --> 00:34:07,720 Speaker 13: that power, and yes they can actually augment it with 672 00:34:07,760 --> 00:34:10,680 Speaker 13: this type of staff that you're describing, but they still 673 00:34:10,680 --> 00:34:12,560 Speaker 13: want to take that and put the power in the 674 00:34:12,600 --> 00:34:15,840 Speaker 13: hands of the creator, which is another decades long trend. 675 00:34:16,320 --> 00:34:19,399 Speaker 13: So we've always known the developer the creator has been key. 676 00:34:19,880 --> 00:34:23,800 Speaker 13: This harkens back to Stripe, which is the developer tools 677 00:34:23,800 --> 00:34:27,480 Speaker 13: company for payment a decade ago, Mango dB right here 678 00:34:27,520 --> 00:34:32,200 Speaker 13: in New York, developer Tools Company for databases, or even Unity, 679 00:34:32,200 --> 00:34:35,560 Speaker 13: the developer tools companies for game creation. One of the 680 00:34:35,600 --> 00:34:39,200 Speaker 13: things that open ai has nailed is focusing on the developer, 681 00:34:39,640 --> 00:34:42,799 Speaker 13: focusing on the creator and helping that creator, including with 682 00:34:42,840 --> 00:34:44,160 Speaker 13: these assistants and services. 683 00:34:44,360 --> 00:34:46,759 Speaker 5: I'm interested you mentioned us, for example, a way in 684 00:34:46,800 --> 00:34:49,920 Speaker 5: which we can all suddenly be augmented basically with our 685 00:34:49,960 --> 00:34:51,240 Speaker 5: own very helpful chatbot. 686 00:34:51,239 --> 00:34:53,320 Speaker 3: But how did GPTs. 687 00:34:52,680 --> 00:34:55,000 Speaker 5: That open eye is going to be suddenly making more 688 00:34:55,040 --> 00:34:57,640 Speaker 5: abundant Not just eat into that mote, how do you 689 00:34:57,680 --> 00:34:59,600 Speaker 5: decide which one to mac? 690 00:35:00,120 --> 00:35:03,440 Speaker 13: Yes, so GPTs are going to be I think a 691 00:35:03,480 --> 00:35:06,960 Speaker 13: wonderful addition to the ecosystem. And as I see it, 692 00:35:07,000 --> 00:35:09,200 Speaker 13: as we see it, the world is not going to 693 00:35:09,200 --> 00:35:11,560 Speaker 13: be a zero sum game in AI. All boats are 694 00:35:11,680 --> 00:35:13,920 Speaker 13: rising because of this amazing wave. You can do so 695 00:35:14,040 --> 00:35:15,520 Speaker 13: much more with so much less. 696 00:35:15,640 --> 00:35:17,560 Speaker 5: But not all value is going to accrue to set 697 00:35:17,960 --> 00:35:19,759 Speaker 5: to some of the ones that you've backed. I mean, 698 00:35:19,960 --> 00:35:21,920 Speaker 5: not all of these ones are going to survive the 699 00:35:21,920 --> 00:35:24,200 Speaker 5: competition coming from the Juggernauts. 700 00:35:23,840 --> 00:35:24,400 Speaker 8: No doubt. 701 00:35:24,600 --> 00:35:26,600 Speaker 13: And what we've learned time and again at Sequoia and 702 00:35:26,640 --> 00:35:30,680 Speaker 13: these technology innovations is that it's survival of the most nimble. 703 00:35:30,760 --> 00:35:33,640 Speaker 4: Well, the big concentrative open AI is that they can 704 00:35:33,719 --> 00:35:37,239 Speaker 4: stomach the mega compute costs, the talent costs, so they 705 00:35:37,320 --> 00:35:39,480 Speaker 4: end up being the strongest and any game in town. 706 00:35:39,680 --> 00:35:42,440 Speaker 4: Is that a fair argument. I don't think it's going 707 00:35:42,480 --> 00:35:45,000 Speaker 4: to play out that way. And first of all, we 708 00:35:45,040 --> 00:35:47,360 Speaker 4: love open air. We want them to succeed and continue 709 00:35:47,400 --> 00:35:51,719 Speaker 4: to perform. They've actually contributed a lot to the AI ecosystem. 710 00:35:51,960 --> 00:35:55,640 Speaker 4: But we're in the middle of a decade's long AI revolution. 711 00:35:55,760 --> 00:35:58,200 Speaker 13: This is a point in time. Let's think back to 712 00:35:58,239 --> 00:36:01,320 Speaker 13: the three things that make up AI. Its algorithms, of course, 713 00:36:01,320 --> 00:36:05,440 Speaker 13: written by people, it's compute, and its data. In the 714 00:36:05,440 --> 00:36:08,400 Speaker 13: early two thousands, we saw the first sparks and that 715 00:36:08,520 --> 00:36:11,280 Speaker 13: was in the form of predictive AI that powers everything 716 00:36:11,320 --> 00:36:16,399 Speaker 13: from your Facebook news feed to your Netflix recommendations. Then 717 00:36:16,719 --> 00:36:20,240 Speaker 13: more compute, more data. We had the perceptive AI revolution. 718 00:36:20,600 --> 00:36:23,919 Speaker 13: That's everything from computer vision to self driving cars, which 719 00:36:24,160 --> 00:36:27,440 Speaker 13: are now commercially available on the streets of San Francisco 720 00:36:27,560 --> 00:36:30,880 Speaker 13: and amazing. This wave, the generative AI wave, is just 721 00:36:31,360 --> 00:36:35,080 Speaker 13: more data, better algorithms, more compute, and we're going to 722 00:36:35,120 --> 00:36:37,640 Speaker 13: continue to go from here. It's going to be video, 723 00:36:38,040 --> 00:36:40,880 Speaker 13: it's going to be multimodal, which they're investing into as well, 724 00:36:41,080 --> 00:36:44,880 Speaker 13: and it's going to be AI controlling complex systems just 725 00:36:44,920 --> 00:36:47,720 Speaker 13: another point in time, and our job is to focus 726 00:36:47,760 --> 00:36:50,520 Speaker 13: on the underdog so that they can actually come in 727 00:36:50,600 --> 00:36:53,319 Speaker 13: and usher in the next wave of AI in what's 728 00:36:53,360 --> 00:36:55,160 Speaker 13: going to be many more decades of innovation. 729 00:36:55,680 --> 00:36:57,960 Speaker 5: Many would say, actually the worker is the underdog right now, 730 00:36:57,960 --> 00:36:59,799 Speaker 5: so we'll see how that has implications on the labor 731 00:36:59,840 --> 00:37:01,920 Speaker 5: for will have to get you back for another conversation 732 00:37:02,040 --> 00:37:05,319 Speaker 5: on that. SEQUEA Capital partner Constantine Muler always great to 733 00:37:05,320 --> 00:37:07,000 Speaker 5: have him right here in New York can discuss all 734 00:37:07,040 --> 00:37:13,399 Speaker 5: these things. 735 00:37:14,200 --> 00:37:14,480 Speaker 8: Okay. 736 00:37:14,480 --> 00:37:17,960 Speaker 4: After the runaway success of the animated Super Mario Bros. Film, 737 00:37:18,239 --> 00:37:21,840 Speaker 4: Nintendo is planning a live action movie based on the 738 00:37:21,960 --> 00:37:24,680 Speaker 4: legend of Zelda video game series. The company announces that 739 00:37:24,880 --> 00:37:27,760 Speaker 4: Too Analysts is planned to release one movie every year, 740 00:37:27,960 --> 00:37:30,640 Speaker 4: building on the success of Mario, which generated one point 741 00:37:30,680 --> 00:37:34,680 Speaker 4: thirty six billion dollars in global ticket sales. Nintendo said 742 00:37:34,760 --> 00:37:37,919 Speaker 4: it will produce the Selda picture with Arad Productions, which 743 00:37:37,960 --> 00:37:40,000 Speaker 4: has also worked in some of the Marvel film's cara. 744 00:37:41,120 --> 00:37:43,839 Speaker 5: Meanwhile, sticking with video games, said shares a take two 745 00:37:43,880 --> 00:37:47,080 Speaker 5: interactive surging today on news at the company look it's 746 00:37:47,080 --> 00:37:50,560 Speaker 5: gearing up to announce the Resa Grand Theft Auto six age. 747 00:37:50,800 --> 00:37:55,239 Speaker 5: I know that you're one interesting title exactly, completely a 748 00:37:55,320 --> 00:37:57,839 Speaker 5: wild title for them. But let's get to the water 749 00:37:57,920 --> 00:38:04,680 Speaker 5: behind the scoop. Bloomberg's Jason, Jason, we were anticipating. We're 750 00:38:04,719 --> 00:38:06,920 Speaker 5: excited for what's going to be released in December, the 751 00:38:06,960 --> 00:38:09,960 Speaker 5: teasers to come. How important is this for the world 752 00:38:10,000 --> 00:38:10,520 Speaker 5: of game land? 753 00:38:11,680 --> 00:38:12,760 Speaker 9: Yeah, it's you, muongus. 754 00:38:12,840 --> 00:38:15,480 Speaker 2: I think I don't even think people fathom just how 755 00:38:15,520 --> 00:38:18,399 Speaker 2: big a release this is going to be. The previous game, 756 00:38:18,440 --> 00:38:24,319 Speaker 2: GRANDT five has sold one hundred eighty five million copies, which, 757 00:38:24,440 --> 00:38:27,000 Speaker 2: just to put that in perspective, the entirety of the 758 00:38:27,040 --> 00:38:30,680 Speaker 2: Assassin's creat series from Ubisoft, the Umungas series that has 759 00:38:30,680 --> 00:38:33,640 Speaker 2: been a cornerstone of a major video game publisher, has 760 00:38:33,640 --> 00:38:37,000 Speaker 2: sold two hundred million copies. GTA five is sold once 761 00:38:37,000 --> 00:38:40,320 Speaker 2: again one hundred eighty five It is the second best 762 00:38:40,320 --> 00:38:43,400 Speaker 2: selling game of all time, second to only Minecraft. But 763 00:38:43,480 --> 00:38:46,120 Speaker 2: Minecraft has kind of an unfair advantage because it's on phones. 764 00:38:46,200 --> 00:38:49,640 Speaker 2: GTA is just on PC and consoles, so it's pretty 765 00:38:49,800 --> 00:38:50,600 Speaker 2: mind boggling. 766 00:38:51,000 --> 00:38:53,759 Speaker 4: When I think about GTA, I think about the fan base, right, 767 00:38:53,800 --> 00:38:56,839 Speaker 4: it's an intense global fan base. What can you tell 768 00:38:56,880 --> 00:39:00,400 Speaker 4: that fan base based on your reporting to expect from 769 00:39:00,600 --> 00:39:01,400 Speaker 4: GTA six. 770 00:39:02,400 --> 00:39:04,719 Speaker 2: Yeah, so we've been reporting a bloomberg on this game 771 00:39:04,760 --> 00:39:06,520 Speaker 2: for a little while. Now we know it is set 772 00:39:06,560 --> 00:39:09,680 Speaker 2: in a fictionalized version of Miami. We know it is 773 00:39:09,719 --> 00:39:13,600 Speaker 2: going to have two protagonists, one male and one female. 774 00:39:13,600 --> 00:39:15,319 Speaker 2: This is the first time in quite a long time 775 00:39:15,400 --> 00:39:18,279 Speaker 2: that Rockstar has had a female protagonist, so that I 776 00:39:18,280 --> 00:39:20,520 Speaker 2: think is going to be exciting. It'll offer a different 777 00:39:20,560 --> 00:39:26,000 Speaker 2: perspective than your average kind of male centric Rockstar game. 778 00:39:26,280 --> 00:39:28,840 Speaker 2: And yeah, it's really exciting. I mean, I'm very excited 779 00:39:29,000 --> 00:39:31,359 Speaker 2: to check it out. I'm also excited about the fact that, 780 00:39:31,640 --> 00:39:34,400 Speaker 2: as we've also reported, rock Star has really done a 781 00:39:34,440 --> 00:39:37,239 Speaker 2: lot of work and trying to improve their culture over 782 00:39:37,280 --> 00:39:40,120 Speaker 2: the last few years. They came under some controversy during 783 00:39:40,160 --> 00:39:43,320 Speaker 2: the release of their last game, Red Dead Redemption two 784 00:39:43,360 --> 00:39:45,960 Speaker 2: over their work life balance and the kind of tough 785 00:39:46,000 --> 00:39:48,480 Speaker 2: hours that they put their workers through, and it sounds 786 00:39:48,560 --> 00:39:50,520 Speaker 2: like from what I'm hearing inside the company, things have 787 00:39:50,640 --> 00:39:53,719 Speaker 2: really been getting better there, and we'll have to see 788 00:39:53,719 --> 00:39:56,560 Speaker 2: if that remains the case throughout the final year or 789 00:39:56,600 --> 00:39:58,680 Speaker 2: two of development on GTA six. 790 00:39:59,520 --> 00:40:02,680 Speaker 4: Jason just terrific reporting and Carrie. Twenty twenty three has 791 00:40:02,680 --> 00:40:05,640 Speaker 4: been a year about video games, video games and films. 792 00:40:05,719 --> 00:40:07,319 Speaker 3: Video games, What are you doing at the moment? 793 00:40:07,400 --> 00:40:09,359 Speaker 4: I'm playing right now Spider Man two. That's great. 794 00:40:09,719 --> 00:40:12,040 Speaker 5: Ah, we like it when he's a superhero. I meanwhile, 795 00:40:12,040 --> 00:40:14,160 Speaker 5: that does it. From this edition of Bloombag Technology. 796 00:40:13,920 --> 00:40:15,680 Speaker 4: Check out the pod wherever you get yours from New 797 00:40:15,760 --> 00:40:21,080 Speaker 4: York City. This is Bloomberg Technology.