WEBVTT - Rivian Earnings and WeWork's Bankruptcy 0:00:01.440 --> 0:00:05.120 From the heart where Innovation, money and power Collie in 0:00:05.240 --> 0:00:06.720 Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.520 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.880 --> 0:00:26.560 Now from Lomog's world headquarters in New York. 0:00:26.560 --> 0:00:28.360 I'm Caroline High and I'm me d Lodlow, also in 0:00:28.400 --> 0:00:30.880 New York this week, and this is Bloomberg Technology. 0:00:30.960 --> 0:00:31.400 Coming up. 0:00:31.440 --> 0:00:34.640 We are gotning the full earnings coverage for you. We 0:00:34.760 --> 0:00:36.880 hear from the CEO of Ribbon on the ev makers 0:00:36.960 --> 0:00:40.040 earnings and push ahead to all important Disney results after 0:00:40.080 --> 0:00:42.319 the Bell not to mention a whole host of other 0:00:42.360 --> 0:00:43.000 tech names. 0:00:43.280 --> 0:00:46.640 Plus as we speak, we Work appears in bankruptcy court 0:00:46.880 --> 0:00:49.520 to kick off a month's long debate about how creditors 0:00:49.680 --> 0:00:52.680 should divide the remains of a once high flying company. 0:00:52.760 --> 0:00:55.320 Details ahead and shares of take too attractive. 0:00:55.360 --> 0:00:58.120 They are surging today after the company confirm reports it's 0:00:58.120 --> 0:01:00.200 planning to release details on its hotly un This is 0:01:00.200 --> 0:01:03.920 abated Grand, theft, Auto six, all that and so much 0:01:03.920 --> 0:01:04.560 more coming up. 0:01:04.640 --> 0:01:05.479 The story for me. 0:01:05.520 --> 0:01:08.679 Is about Bob Eiger's turnaround. Right, all of those cuts, 0:01:08.920 --> 0:01:12.960 the cost savings, thinking about reducing the content spend, Well, 0:01:12.959 --> 0:01:14.800 that's how he's going to be judged by on the 0:01:14.800 --> 0:01:16.840 bottom line after market. I think that's where we look 0:01:16.880 --> 0:01:18.000 in a few hours time CARECT. 0:01:18.040 --> 0:01:20.160 Yeah, return to growth, that's what people want to see, 0:01:20.160 --> 0:01:24.959 whether it be on indeed Disney's subscriber growth on Disney Plus, 0:01:24.959 --> 0:01:26.679 but also whether really you can see a turn around 0:01:26.680 --> 0:01:28.400 in the overall numbers. Let's get to it with Chris 0:01:28.440 --> 0:01:31.240 Palm Mary or Bloomberg and are we expecting a bounce 0:01:31.280 --> 0:01:31.839 back to growth? 0:01:33.080 --> 0:01:33.319 Yeah. 0:01:33.520 --> 0:01:36.400 I mean, at least in terms of Wall Street expectations, 0:01:36.480 --> 0:01:39.080 it's going to be a bump in sales, it's going 0:01:39.120 --> 0:01:43.319 to be a higher profit a bottom line. They're expected 0:01:43.360 --> 0:01:46.960 to show lower losses in the streaming business. So yeah, 0:01:46.959 --> 0:01:49.760 all those things that you mentioned, the cost cutting, it 0:01:49.800 --> 0:01:50.800 appears to be paying. 0:01:52.000 --> 0:01:53.160 So I think this is going to be a really 0:01:53.160 --> 0:01:56.000 big earnings Chris pal Mary, you lead our coverage of 0:01:56.040 --> 0:02:00.600 the entertainment industry. Do you go into this thinking about 0:02:00.800 --> 0:02:05.200 Disney is a tech company streaming subscribe as content or 0:02:05.320 --> 0:02:08.400 do you wake up on earnings morning and think theme parks, 0:02:08.440 --> 0:02:10.240 merchandise and traditional TV. 0:02:11.919 --> 0:02:14.480 I always think of Disney Board as a conservative products company. 0:02:14.840 --> 0:02:17.280 This has been a really choppy week in terms of 0:02:17.360 --> 0:02:21.240 entertainment earnings. We saw Paramount Scott jumped last week when 0:02:21.280 --> 0:02:27.120 they reported some better results. Today Warner Brothers dives and 0:02:27.160 --> 0:02:29.399 again some numbers there in the Warner Brothers supports are 0:02:29.440 --> 0:02:32.200 not bad. They show to profit in streaming in the 0:02:32.240 --> 0:02:36.000 most recent quarter, which Disney and Paramount have not are 0:02:36.080 --> 0:02:36.640 unlikely to. 0:02:37.120 --> 0:02:39.280 So you never know what to expect. 0:02:39.639 --> 0:02:42.040 It's been a really difficult market for advertising on the 0:02:42.080 --> 0:02:45.640 traditional TV networks. That's something Disney is very much exposed to. 0:02:46.240 --> 0:02:49.520 And the big questions always surround Disney and what is 0:02:49.520 --> 0:02:52.720 Bob Iyer going to say on the call about divestitures 0:02:52.760 --> 0:02:57.560 of ABC buying Bhulu, you know, other potential deals. 0:02:56.960 --> 0:02:59.840 It's it's always, you know, something to. 0:02:59.800 --> 0:03:02.480 Watch because this is actually where we get the first 0:03:02.680 --> 0:03:06.359 well sports TV part of the business stripped out actually 0:03:06.400 --> 0:03:08.400 showing us what the numbers really look like. When it 0:03:08.400 --> 0:03:11.000 comes to ESPN, how much do you think he'll actually 0:03:11.040 --> 0:03:13.480 answer questions about what he sells, what he buys. 0:03:15.720 --> 0:03:17.239 I certainly hope you get to ask a lot. 0:03:17.320 --> 0:03:19.440 I mean, ESPN is one of the ones they said 0:03:19.440 --> 0:03:21.400 they're looking for a strategic partner. 0:03:21.560 --> 0:03:23.440 We've reported they've talked. 0:03:23.200 --> 0:03:27.120 To everyone tech companies, the sports leagues, it's not really 0:03:27.200 --> 0:03:29.760 clear to a lot of people what Disney gets out 0:03:29.800 --> 0:03:32.720 of the you know, bringing in another investor to ESPN. 0:03:32.960 --> 0:03:35.800 Hearst Corporation owns twenty percent of it. You know. 0:03:35.840 --> 0:03:38.320 One of the takeaways from the numbers they started reporting 0:03:38.320 --> 0:03:42.040 on the sports business is that although it's profitable, you know, 0:03:42.120 --> 0:03:45.920 it's it has really high content costs those NFL rights, 0:03:45.960 --> 0:03:48.120 and that's something that's likely to come into play in 0:03:48.160 --> 0:03:51.440 this quarter, as they reported as well. So getting that 0:03:51.520 --> 0:03:53.840 picture of ESPN and where it goes from here, it's 0:03:53.840 --> 0:03:54.120 going to be. 0:03:54.120 --> 0:03:56.800 Important, all right, bloom best Chris paum Mary, you are 0:03:56.840 --> 0:03:59.280 the editor in charge of our entertainment coverage. Is a 0:03:59.280 --> 0:04:01.840 busy day for you on the West coast. Thank you 0:04:02.040 --> 0:04:04.200 very much. Look a name that I've been watching, Caro 0:04:04.440 --> 0:04:06.840 is Rivian, as you know, has changed my desk for earnings. 0:04:07.080 --> 0:04:09.840 Shares really popped last night again in pre market because 0:04:09.840 --> 0:04:13.240 of two pieces of news. Updated guidance they'll build more 0:04:13.240 --> 0:04:17.240 evs and expected but also Amazon has freed them from 0:04:17.240 --> 0:04:19.560 their exclusivity on vans. They can go and sell vans 0:04:19.560 --> 0:04:22.040 to others, and I'd heard from sources they were well 0:04:22.120 --> 0:04:25.040 underway with that, so I asked the CEO R J. Scarrange, 0:04:25.200 --> 0:04:25.680 have a listen. 0:04:26.720 --> 0:04:29.640 It's not as if we woke up yesterday and we 0:04:29.720 --> 0:04:33.440 signed the exclusivity that changed the exclusivity agreement with Amazon. 0:04:33.440 --> 0:04:36.080 It was a long, long process and through that process 0:04:36.120 --> 0:04:39.560 we're able to use that time to build a pipeline 0:04:39.760 --> 0:04:42.600 of other customers and diverse customers. 0:04:43.200 --> 0:04:44.480 We're not yet announcing any. 0:04:44.320 --> 0:04:48.719 Of those deals, but they'll start by large with pilot 0:04:49.320 --> 0:04:53.600 deployments where we have sort of skilled the skilled number 0:04:53.600 --> 0:04:56.400 of vehicles that go out and test the systems, understand 0:04:56.400 --> 0:04:59.080 how they fit within the network. But what you'll see 0:04:59.160 --> 0:05:02.839 is it's very verse across everything from last mile to 0:05:02.960 --> 0:05:06.920 retail to of course just more general purpose commercial applications 0:05:06.920 --> 0:05:07.680 of vans. 0:05:08.080 --> 0:05:11.120 You have an announcement but have not announced them, but 0:05:11.200 --> 0:05:13.560 there are deals, deals that are done, and you have 0:05:13.680 --> 0:05:15.599 visibility on new customers on eDV. 0:05:16.240 --> 0:05:18.760 From this point on, what I'd say is we. 0:05:18.760 --> 0:05:23.240 Have very high visibility on customers outside of Amazon, and 0:05:23.320 --> 0:05:25.640 we are excited to talk about those, but we're not 0:05:25.720 --> 0:05:29.880 yet talking about those other those other relationships and partnerships. 0:05:30.000 --> 0:05:34.080 A j Rivian is still losing thirty one thousand dollars 0:05:34.080 --> 0:05:37.400 on every ev that it makes when will you start 0:05:37.440 --> 0:05:40.760 making money on them? 0:05:41.080 --> 0:05:44.200 Yeah, this has been absolutely a core focus for us 0:05:44.200 --> 0:05:47.039 as a business, and quarter of a quarter we've shown 0:05:47.120 --> 0:05:50.279 significant progress. We certainly showed that as we went from 0:05:50.360 --> 0:05:52.440 Q two to Q three and talked about those results 0:05:52.520 --> 0:05:57.640 yesterday and these improvements that are driving us towards the 0:05:57.760 --> 0:06:01.000 long term twenty five percent corossmark that we've talked about 0:06:01.680 --> 0:06:02.839 extensively on our one. 0:06:04.120 --> 0:06:04.919 You can almost think of it. 0:06:04.920 --> 0:06:06.840 As a staircase. There's a whole host of changes that 0:06:06.920 --> 0:06:09.520 are happening in our material costs. That's our bill of materials, 0:06:10.160 --> 0:06:13.760 there's improvements in our plant. There's the fixed cost absorption 0:06:13.839 --> 0:06:16.720 from running at higher of arms in the plant. And then, 0:06:16.760 --> 0:06:20.000 as of course, there's the evolution of our average selling price, 0:06:20.000 --> 0:06:22.440 which continues to trend upwards as we move into newer 0:06:22.520 --> 0:06:25.800 orders and also launch things like our Max Pack, our 0:06:25.880 --> 0:06:29.440 largest battery pack. But importantly, I do want to really 0:06:29.480 --> 0:06:31.920 be clear here this staircase of steps. 0:06:32.120 --> 0:06:33.320 The biggest step. 0:06:33.080 --> 0:06:36.360 Amongst those is what will be putting in place in 0:06:36.400 --> 0:06:39.520 the plant in the second quarter twenty twenty four, where 0:06:39.520 --> 0:06:41.719 there's a consolidated set of changes that go into the 0:06:41.800 --> 0:06:44.880 vehicle that dramatically reduced to bill of materials and also 0:06:44.960 --> 0:06:48.640 allows to run the plant more efficiently. That's not to 0:06:48.680 --> 0:06:50.760 say there's not improvements that are happening leading up to that, 0:06:50.800 --> 0:06:53.520 but we had a similar shutdown that we did on 0:06:53.520 --> 0:06:57.000 our commercial van early part of this year, and coming 0:06:57.000 --> 0:06:59.080 out of that we had a thirty five percent reduction 0:06:59.120 --> 0:07:03.240 in our material costs. So that's the scale of change 0:07:03.240 --> 0:07:05.240 that we're going to be driving with the shutdown for 0:07:05.360 --> 0:07:07.839 R one in the second quarter twenty twenty four. 0:07:08.240 --> 0:07:09.480 And these are contractual. 0:07:09.600 --> 0:07:13.040 These are contractual changes, meaning bill in materials changes. Are 0:07:13.080 --> 0:07:15.480 not like us hoping suppliers are going to charge us 0:07:15.560 --> 0:07:22.120 lest These are hard negotiations with suppliers contractually obligated, but. 0:07:22.040 --> 0:07:24.320 There's effectivity dates that have to be achieved. 0:07:24.360 --> 0:07:26.880 You know, they don't all apply immediately, they come in 0:07:26.880 --> 0:07:27.360 over time. 0:07:27.920 --> 0:07:28.200 Oh ja. 0:07:28.440 --> 0:07:33.040 Our audience has one common question, very straightforward, when will 0:07:33.040 --> 0:07:36.480 they see in R two prototype A prototype. 0:07:37.880 --> 0:07:40.200 We absolutely can't wait to show it. 0:07:42.280 --> 0:07:45.320 We're going to be showing the R two program in 0:07:45.360 --> 0:07:48.120 the first quarter of this coming year, so early part 0:07:48.120 --> 0:07:52.800 of next year. This is a absolutely vital program for 0:07:52.880 --> 0:07:55.760 us as a business. It allows us to take our 0:07:55.800 --> 0:07:58.400 brand and what we built as a company and put 0:07:58.440 --> 0:08:01.240 into a smaller package, but importantly much more a priced vehicle. 0:08:02.080 --> 0:08:04.480 But I've never been this excited about a product as 0:08:04.520 --> 0:08:08.040 I am about R two. It is that exciting it 0:08:08.120 --> 0:08:10.080 and I would say it's that good. We think it's 0:08:10.160 --> 0:08:11.000 just exceptional. 0:08:11.160 --> 0:08:13.760 But quickly, to be clear, you'll whip the canvas off 0:08:13.800 --> 0:08:16.400 on stage or something in the first quarter of twenty 0:08:16.400 --> 0:08:18.120 four on an R two prototype. 0:08:18.720 --> 0:08:20.600 We're going to be showing it their other product next year. Yep, 0:08:20.640 --> 0:08:21.080 that's right. 0:08:22.200 --> 0:08:25.360 That's my interview with r J Scaring Ruvian CEO. Some 0:08:25.480 --> 0:08:30.520 say doppelganger. Now coming up, I'm say, Caroline, says Steve O. 0:08:31.120 --> 0:08:32.440 Coming up on the show. We're going to talk about 0:08:32.440 --> 0:08:36.360 safeguards for artificial intelligence with the CEO of Credo AI, 0:08:36.480 --> 0:08:39.440 who's in town to kick off the Responsible AI Summit, 0:08:39.440 --> 0:08:41.839 which is in New York today. Carra, what you got? 0:08:42.000 --> 0:08:44.640 I Meanwhile, look, there are a whole host of earnings 0:08:44.679 --> 0:08:46.760 that are coming up, some of them relatively new to 0:08:46.800 --> 0:08:49.280 publicly training life once again, arm Key among them. It's 0:08:49.280 --> 0:08:51.360 actually down on the day, as of course, most of 0:08:51.400 --> 0:08:53.920 the spectrum is in terms of tech arm off by 0:08:53.920 --> 0:08:55.760 three percent. But look for their numbers after the bell 0:08:55.800 --> 0:08:58.880 lift as well All Important after Uber managed to outperform 0:08:58.880 --> 0:09:02.000 Instacart as well Key as It's down some four percent. 0:09:02.000 --> 0:09:04.520 And of course, both of these recently listed companies have 0:09:04.520 --> 0:09:07.120 been under pressure since going public. Or keep a close 0:09:07.160 --> 0:09:10.040 eye on all of that From New York, both of 0:09:10.080 --> 0:09:12.520 us today Listen Blue Meade Technology. 0:09:26.880 --> 0:09:29.120 Some news in the social media space and an effort 0:09:29.200 --> 0:09:33.679 to combat misinformation, Meta will soon require advertisers to disclose 0:09:33.679 --> 0:09:37.520 when political or social issue ads have been created or 0:09:37.559 --> 0:09:41.040 altered by artificial intelligence. The rules will go intoffect in 0:09:41.080 --> 0:09:44.319 twenty twenty four and will require advertisers to disclose when 0:09:44.360 --> 0:09:48.359 AI is used in Facebook or Instagram ads on social issues, elections, 0:09:48.440 --> 0:09:51.360 or politics. This according to the company's vice president of 0:09:51.360 --> 0:09:52.960 Global Affairs, Nick Klek. 0:09:53.640 --> 0:09:56.839 And all of that is of course surrounding safeguards ways 0:09:56.840 --> 0:09:59.439 in which you can identify artificial intelligence? 0:09:59.520 --> 0:10:01.280 What about protection from AI? 0:10:01.320 --> 0:10:04.120 More broadly, Today in New York, in the City Credo 0:10:04.160 --> 0:10:07.400 AI will kick off it's Responsible AI Leadership Summit. Basically, 0:10:07.400 --> 0:10:09.640 it brings together the industry pioneers who are kind of 0:10:09.720 --> 0:10:12.760 leading the charge in the adoption of AI governance globally. 0:10:13.120 --> 0:10:15.640 Please to welcome to the show. Credo AI CEO Nvna 0:10:15.679 --> 0:10:17.679 Singh right here in New York with us. Wonderful to have. 0:10:17.679 --> 0:10:18.120 You with us. 0:10:18.240 --> 0:10:21.760 Thank you so much for having me so Ultimately, are. 0:10:21.720 --> 0:10:26.199 The right people, the right voices, exerting their voices and 0:10:26.240 --> 0:10:29.600 having changed is made at the moment because everyone's wildly 0:10:29.600 --> 0:10:32.000 trying to adopt AI. Are they getting the governance and 0:10:32.040 --> 0:10:33.600 the rules in place quickly enough? 0:10:34.240 --> 0:10:35.520 What a great question, Carolyn. 0:10:35.600 --> 0:10:37.360 You know, the past ten days, if there are any 0:10:37.400 --> 0:10:41.360 signal of the urgency in adopting artificial intelligence. We've seen that, 0:10:41.800 --> 0:10:44.480 you know, from the executive order from President Biden all 0:10:44.520 --> 0:10:46.880 the way to the UKI summit, to a lot of 0:10:46.920 --> 0:10:49.160 discussion around how do we now actually make this real? 0:10:49.600 --> 0:10:50.720 And this is why. 0:10:50.559 --> 0:10:53.319 We are here in New York today because we are 0:10:53.320 --> 0:10:57.679 hosting Industries First Responsible, the premier event where we are 0:10:57.720 --> 0:11:01.800 going to be bringing in partners customers from Amazon to 0:11:01.960 --> 0:11:05.679 Microsoft to Google, Boozal and MasterCard and many others who 0:11:05.720 --> 0:11:09.200 are already operationalizing a lot of those guardrails within their 0:11:09.320 --> 0:11:12.800 organizations today. So I think we've moved beyond the talk 0:11:13.240 --> 0:11:15.560 and now it's time for action. And we are already 0:11:15.559 --> 0:11:17.560 seeing that within the enterprises. 0:11:17.120 --> 0:11:20.760 That is a who's who list of participants. It might 0:11:20.800 --> 0:11:23.200 seem like a sort of strange question, but are there 0:11:23.240 --> 0:11:26.319 any stakeholders in the world of AI that declined your 0:11:26.320 --> 0:11:29.280 invitation that you wish hey sit down with us and 0:11:29.360 --> 0:11:31.199 talk because you're a big part of. 0:11:31.120 --> 0:11:35.120 This Good news is no, everyone that we invited is 0:11:35.160 --> 0:11:37.199 showing up. But as you can imagine that, there are 0:11:37.280 --> 0:11:41.480 certain policymakers as well as startups and companies in Europe 0:11:41.760 --> 0:11:43.920 that are heads down right now with the EUAI Act, 0:11:44.200 --> 0:11:45.920 So they weren't able to join us in person, but 0:11:45.960 --> 0:11:47.240 they are joining us virtually. 0:11:47.520 --> 0:11:51.840 It's the frustration that well, ultimately laws aren't being made 0:11:51.920 --> 0:11:53.920 quickly enough, because it does for everyone wants to say 0:11:53.920 --> 0:11:57.160 this time it's different visa v crypto visav social media. 0:11:57.000 --> 0:11:59.480 And it's a regional thing, right Europe versus US. What's 0:11:59.480 --> 0:12:00.800 happening in and. 0:12:00.720 --> 0:12:02.680 They do all seem to be coming together and talking 0:12:02.679 --> 0:12:04.800 a lot about it, but ultimately it takes time to 0:12:04.840 --> 0:12:09.600 make policy. Is self regulation, as some of our guests 0:12:09.640 --> 0:12:12.000 have say, basically marking your own homework the way that 0:12:12.000 --> 0:12:13.400 it has to be for the naytime. 0:12:14.040 --> 0:12:16.880 You know, Carolyn, I think in the world of AI 0:12:17.000 --> 0:12:19.320 and if you just think about what really powers this 0:12:19.480 --> 0:12:20.320 entire ecosystem. 0:12:20.400 --> 0:12:20.960 It's trust. 0:12:21.480 --> 0:12:26.320 So certainly regulators and upcoming compliance needs are a driving force. 0:12:26.520 --> 0:12:29.760 But right now what we are seeing is the reason organizations, 0:12:29.840 --> 0:12:34.240 policy makers, different stakeholders scare about governance is because you 0:12:34.280 --> 0:12:37.640 want to engender trust in this powerful technology which is 0:12:37.720 --> 0:12:38.760 luckily shaping our lives. 0:12:38.760 --> 0:12:40.880 Day in day out. So I think, if you step. 0:12:40.679 --> 0:12:43.640 Back from the regulatory compliance today, how can we make 0:12:43.679 --> 0:12:47.080 that trust happen. It is through transparency, it is through oversight, 0:12:47.320 --> 0:12:48.840 and it is through actual guardrails. 0:12:49.120 --> 0:12:52.360 On that transparency issue. You heard the story that we 0:12:52.760 --> 0:12:55.560 covered on Meta right, if it's a political or social 0:12:55.559 --> 0:12:58.959 issue add and it's been altered or created by AI, 0:12:59.559 --> 0:13:01.600 then you're you have to disclose it As an advertiser. 0:13:02.120 --> 0:13:04.720 Does that work? Is it a powerful tool to your mind? 0:13:05.440 --> 0:13:05.600 You know? 0:13:05.679 --> 0:13:08.040 I think it's a starting point. One of the things 0:13:08.040 --> 0:13:10.880 that is really nerve racking for me as well as 0:13:10.920 --> 0:13:14.280 a technologist is there's so much information out there and 0:13:14.320 --> 0:13:17.440 we're already entering this phase where we don't know what's 0:13:17.440 --> 0:13:20.560 made by human versus what's made by AI versus what's 0:13:20.559 --> 0:13:23.800 made by human plus AI combination. So I think we 0:13:23.840 --> 0:13:27.840 are entering this phase where need for you know, watermarking, 0:13:27.920 --> 0:13:31.480 need for provenance, need for really understanding the entire lineage 0:13:31.720 --> 0:13:34.040 is going to be critical and we are just at 0:13:34.040 --> 0:13:35.920 the starting point. It's a very complex issue and a 0:13:35.920 --> 0:13:39.040 lot of technological innovation but also policy innovation is needed. 0:13:39.800 --> 0:13:44.000 Can you just walk us through how you at Creto 0:13:44.480 --> 0:13:48.160 ultimately help a company get the right rails in place? 0:13:48.200 --> 0:13:50.000 How have you thought about writing. 0:13:49.640 --> 0:13:52.240 The war book ahead of anyone else, She's setting them 0:13:52.280 --> 0:13:53.520 from a regular shap perspective. 0:13:53.840 --> 0:13:56.319 Yeah, so I think this is where Creto AI our 0:13:56.360 --> 0:13:58.440 mission has always been, how do you make sure AI 0:13:58.480 --> 0:14:01.560 is in service of humanity? And instead of just us 0:14:01.600 --> 0:14:04.680 creating our rules, we first what we did was build 0:14:04.840 --> 0:14:08.920 very strong partnerships in the ecosystem with the regulators, policy makers, 0:14:08.920 --> 0:14:12.120 standard setting bodies like nist IO and others. So our 0:14:12.160 --> 0:14:15.320 first step was really bringing all that knowledge in but 0:14:15.480 --> 0:14:19.440 operationalizing that through software, through technology, and as you can imagine, 0:14:19.440 --> 0:14:23.160 most of our team is AI experts, risk experts. So 0:14:23.280 --> 0:14:26.720 now we are bringing in best practices from CREDOAI to 0:14:26.800 --> 0:14:29.239 really help transform Just a quick. 0:14:29.000 --> 0:14:30.320 Example, today's a big day. 0:14:30.360 --> 0:14:34.120 We are launching our trust reports and trust scorecards, because 0:14:34.160 --> 0:14:38.040 if you've been following the Open AIS dev day, they've 0:14:38.080 --> 0:14:41.880 introduced the marketplace. Now, how do you actually make sure 0:14:41.960 --> 0:14:44.200 that all these new applications that are showing up in 0:14:44.240 --> 0:14:47.920 this marketplace are actually trusted and are governed. And this 0:14:48.000 --> 0:14:51.040 is where Cretois trust layer comes in. We've learned a 0:14:51.080 --> 0:14:53.440 lot in the enterprise world that we are now bringing 0:14:53.440 --> 0:14:56.360 to startups so that they can compete but also win. 0:14:56.400 --> 0:14:57.040 In the stage of. 0:14:56.960 --> 0:15:00.640 AI Verrina saying Creato Aic, it's good to be here 0:15:00.640 --> 0:15:04.440 in person with you, sony conversation we've had remotely keep 0:15:04.480 --> 0:15:14.240 in touch on what actually happens in your summit. Okay, 0:15:14.240 --> 0:15:16.760 time for talking tech and use out just before the show. 0:15:16.840 --> 0:15:19.680 AI startup and Fropic will be one of the first 0:15:19.680 --> 0:15:24.000 companies to use new chips from Google, deepening their partnership 0:15:24.040 --> 0:15:27.280 after a recent three billion dollar cloud computing agreement. And 0:15:27.360 --> 0:15:30.520 Thropic will deploy the chips to help power its large 0:15:30.560 --> 0:15:33.920 language model clause. Remember they also have a deal with 0:15:34.040 --> 0:15:39.000 AWS and Amazon speaking of is offering Prime subscribers discounted 0:15:39.040 --> 0:15:41.600 one medical memberships. The new deal will cut a one 0:15:41.640 --> 0:15:44.840 medical membership by one hundred dollars to ninety nine dollars 0:15:44.840 --> 0:15:49.080 a year. One Medical is a centerpiece of Amazon's healthcare operation, 0:15:49.200 --> 0:15:53.040 and Microsoft is offering US politicians and campaign groups at 0:15:53.040 --> 0:15:56.160 all aim to help fight the rise of deep fakes 0:15:56.360 --> 0:15:59.240 ahead of the twenty twenty four presidential election. The new 0:15:59.240 --> 0:16:02.359 tool will allow parties to authenticate their videos and photos 0:16:02.480 --> 0:16:06.920 who are so called watermark credentials using cryptography car. 0:16:07.480 --> 0:16:10.240 Meanwhile, ed we move away well from the future of 0:16:10.280 --> 0:16:12.080 AI to what's happening in the here and now, the 0:16:12.120 --> 0:16:14.920 downfall of we work. It's making its first bankruptcy court 0:16:14.920 --> 0:16:18.680 appearance today seeking to advance that restructuring proposal that could 0:16:18.680 --> 0:16:21.560 cut three billion dollars in debt and actually shrink the company's. 0:16:21.280 --> 0:16:22.200 Real estate footprint. 0:16:22.480 --> 0:16:25.320 Then once really high flying real estate business far from 0:16:25.320 --> 0:16:29.400 bankruptcy just two years after going public and springing Bloomberg's 0:16:29.400 --> 0:16:32.120 Ellen Hewitt, who was there for the highs, who were 0:16:32.160 --> 0:16:35.920 there for the crash, and ultimately we see the repercussions 0:16:35.960 --> 0:16:39.960 for those left holding what is the assets thus far, Ellen, 0:16:41.200 --> 0:16:44.760 who's really being implicated by this bankruptcy filing? 0:16:46.000 --> 0:16:47.840 Well, the people who are really being affected, I mean, 0:16:47.880 --> 0:16:52.720 it seems like reputationally Starffink is really being hurt by this. 0:16:53.200 --> 0:16:55.840 You know, they've obviously poured billions of dollars into this 0:16:55.920 --> 0:16:59.720 company over the years, and now it's almost like a 0:16:59.720 --> 0:17:02.520 crown jewel of their bad calls. Right, it's going to 0:17:02.560 --> 0:17:05.400 be the one that people always refer to and say like, wow, 0:17:05.440 --> 0:17:08.560 that was really not a good bet. And I think 0:17:08.760 --> 0:17:11.080 although there's a future for We Work, you know, depending 0:17:11.119 --> 0:17:15.280 on how this bankruptcy process goes, I think reputationally, it's 0:17:15.320 --> 0:17:18.480 been really hard for SoftBank and for a Masochi son. 0:17:18.760 --> 0:17:22.080 You have chronicled every step basically of we Work. You 0:17:22.080 --> 0:17:25.199 have a peace out, look back at the ten defining moments. 0:17:25.200 --> 0:17:27.320 We don't have time for all ten. But what are 0:17:27.320 --> 0:17:28.960 the kind of top twos your mind? 0:17:29.640 --> 0:17:33.720 Well, people forget how fun We Work was in the 0:17:34.080 --> 0:17:36.720 sort of the period between like twenty fourteen and twenty nineteen. 0:17:36.800 --> 0:17:41.000 I mean it was first this extremely energetic, raw, raw, 0:17:41.240 --> 0:17:44.120 super fun company that was really trying to make work fun. 0:17:44.200 --> 0:17:46.679 So if you can picture it, you know, going to 0:17:46.840 --> 0:17:50.199 summer camp, which was their big annual blowout both for 0:17:50.280 --> 0:17:52.240 all their employees as well as a bunch of members. 0:17:52.440 --> 0:17:54.960 They would come gather for a weekend in these like 0:17:55.000 --> 0:17:59.000 beautiful settings in nature and have basically a music festival. 0:17:59.680 --> 0:18:02.920 There were speakers like Deepak Chopra, there were headlining musical acts, 0:18:02.960 --> 0:18:05.840 there was alcohol everywhere. And if you talk to people 0:18:05.880 --> 0:18:07.440 who used to work at Weework, they were like, yeah, 0:18:08.040 --> 0:18:11.160 that was really fun, and it's imagine going to Coachella, 0:18:11.200 --> 0:18:13.159 but it's thrown by your boss. It's like one of 0:18:13.160 --> 0:18:16.240 these weird things that I think captures the thing that 0:18:16.280 --> 0:18:18.520 we Work was trying to do, which was blur the 0:18:18.560 --> 0:18:21.640 lines between work and your personal life. 0:18:21.960 --> 0:18:26.240 What's interesting is Masioshi's son sort of almost took on 0:18:27.160 --> 0:18:30.919 sort of some of the blame over Adam himself Newman, 0:18:31.080 --> 0:18:34.399 sort of realizing them perhaps by thrusting so much money, 0:18:34.440 --> 0:18:38.040 so much disire for him to go out build be ambitious, 0:18:38.440 --> 0:18:41.440 it pushed Adam too far. Do you think that has 0:18:41.560 --> 0:18:43.840 credence to it? 0:18:43.480 --> 0:18:44.720 I think it does. 0:18:44.800 --> 0:18:46.840 I mean, in some ways, one way to look at 0:18:46.880 --> 0:18:50.360 Adam is that he's someone who was very good, intentionally 0:18:50.480 --> 0:18:53.720 or not, at taking advantage of the venture capital financial 0:18:53.760 --> 0:18:57.000 ecosystem of the mid to late twenty tens. Like he 0:18:57.119 --> 0:19:00.160 realized that there were people out there like Masa who 0:19:00.160 --> 0:19:02.879 were willing to write enormous checks for people who were 0:19:02.920 --> 0:19:05.399 willing to put so much energy into growing a company 0:19:05.440 --> 0:19:07.960 as fast as Adam was able to grow. We work 0:19:08.320 --> 0:19:11.240 so you end up with someone who you know already 0:19:11.320 --> 0:19:14.240 had the tendencies to want to go big and go crazy, 0:19:14.280 --> 0:19:16.720 and then there's someone like Masa who really came along 0:19:16.720 --> 0:19:20.200 and enabled that with enormous amounts of money. It does 0:19:20.240 --> 0:19:22.919 seem like both of them, you know, they're not certainly 0:19:22.920 --> 0:19:26.240 they'll have futures in business. Adam's future and business certainly 0:19:26.280 --> 0:19:28.720 seems quite strong. He's been able to raise hundreds of 0:19:28.760 --> 0:19:32.840 millions of dollars for his new ventures and his reputation. 0:19:33.160 --> 0:19:35.119 Of course, this will always be part of his story, 0:19:35.160 --> 0:19:37.879 but I think he's emerged pretty unscathed. 0:19:38.359 --> 0:19:40.840 Bloomberg, Zell, and hut all over. We work for years. 0:19:40.880 --> 0:19:44.360 Today's day one of bankruptcy court. More to come. Thank 0:19:44.400 --> 0:19:44.920 you so much. 0:19:51.960 --> 0:19:54.200 Welcome back to Blue Meg Technology. I'm Caroline Hyde. 0:19:54.040 --> 0:19:55.680 And I Med Ludlow, and it's time for a quick 0:19:55.760 --> 0:19:59.640 check on markets in Team Technology. I've got some devastating 0:19:59.720 --> 0:20:02.880 new After eight straight days of gains on the Nasdaq 0:20:02.960 --> 0:20:05.720 one hundred, the longest streak of gains going back to 0:20:05.800 --> 0:20:09.240 November twenty twenty one. As it stands, the Nasdaq one 0:20:09.320 --> 0:20:11.920 hundred in this session is down by a few tens 0:20:11.920 --> 0:20:14.400