WEBVTT - Twitter Under EU Scrutiny and Tech Execs Meet with Biden 0:00:01.680 --> 0:00:02.400 From Mahard. 0:00:02.560 --> 0:00:04.480 We're Innovation, Money and Power. 0:00:04.600 --> 0:00:07.000 Collie in Silicon Ballet NBN. 0:00:07.320 --> 0:00:11.360 This is Bloomberg Technology with Caroline Hyde and Ed Lovedlove. 0:00:26.160 --> 0:00:29.000 I had Lovelow in San Francisco. Caroline Hyde off today. 0:00:29.120 --> 0:00:32.640 This is Bloomberg Technology coming up on the programmer warning 0:00:32.640 --> 0:00:36.960 from the EU to Twitter, crackdown on disinformation or face 0:00:37.000 --> 0:00:39.800 the consequences. We bring you our interview with the Block's 0:00:39.840 --> 0:00:44.640 Internal Market Commissioner, Tieri Breton, plus tech executives descend on 0:00:44.720 --> 0:00:48.240 the White House, our takeaways from Narendra Modi's state dinner 0:00:48.400 --> 0:00:51.600 as the CEOs of Apple, Google, Microsoft and open Ai, 0:00:51.960 --> 0:00:55.040 dying with the President and India's Prime Minister. And San 0:00:55.160 --> 0:00:58.640 Francisco's driverless future. I'll take you behind the scenes of 0:00:58.720 --> 0:01:02.960 my experience using autonomous vehicles. There's robotaxis. It's becoming a 0:01:03.000 --> 0:01:06.240 reality for thousands in this city. First, let's get to 0:01:06.280 --> 0:01:07.520 check on the market, so I want to get straight 0:01:07.520 --> 0:01:09.840 to the technology sector in equities. Then as that one 0:01:09.920 --> 0:01:13.160 hundred down this Friday, we're actually on track for our 0:01:13.160 --> 0:01:17.080 biggest weekly drop since March. That week in March where 0:01:17.120 --> 0:01:18.880 the banking crisis was unfolding. 0:01:19.200 --> 0:01:20.600 There's a story playing out here. 0:01:20.640 --> 0:01:22.600 You look at the performance of the NASA one hundred 0:01:22.800 --> 0:01:25.840 year to date, it's about a forty percent gain near that, 0:01:26.640 --> 0:01:29.640 echoing what we saw in nineteen ninety nine right before 0:01:29.920 --> 0:01:32.920 that bubble. We've got strategists by Bank of America writing 0:01:33.000 --> 0:01:37.119 that investors actually have started to flee technology stocks. They 0:01:37.160 --> 0:01:41.039 cite data from EPFR Global Data two billion dollars of 0:01:41.120 --> 0:01:44.880 outflows in the five trading days through June twenty first. 0:01:45.120 --> 0:01:47.840 So there could be a shift here when you extrapolate, 0:01:47.880 --> 0:01:49.520 when you zoom out and take a look at the 0:01:49.600 --> 0:01:52.040 nas that one hundred in the moment, most names on 0:01:52.080 --> 0:01:54.800 a single name basis in the red on that index. 0:01:54.840 --> 0:01:57.160 And breaking news at the top of this hour, Bitcoin 0:01:57.480 --> 0:02:00.320 has hit its highest level in one year. It's been 0:02:00.360 --> 0:02:02.920 a lot of momentum, but a sharp gain sees us 0:02:02.920 --> 0:02:06.120 above thirty one thousand, one hundred US dollars per token. 0:02:06.200 --> 0:02:09.400 Go back to June fifteenth and that surprise black Rock 0:02:09.520 --> 0:02:13.360 filing for a Bitcoin spot Exchange ETF. That's what a 0:02:13.400 --> 0:02:15.440 lot of the story has been about, and it's a 0:02:15.480 --> 0:02:20.320 remarkable turnaround for what we have seen in this particular 0:02:20.400 --> 0:02:23.760 digital asset or digital token, but crypto more broadly, given 0:02:23.760 --> 0:02:27.239 there are a number of structural and industry issues very quickly, 0:02:27.280 --> 0:02:28.840 some names that we're watching. We're going to bring you 0:02:28.880 --> 0:02:33.359 the details of that meeting between those technology CEOs, President 0:02:33.400 --> 0:02:36.880 Biden and Therendromodi, Prime Minister of India. To the downside, 0:02:36.880 --> 0:02:39.000 we see Apple a little softer alphabet off by a 0:02:39.040 --> 0:02:43.440 percentage point, Tesla actually Interesting down almost two percentage points, 0:02:43.440 --> 0:02:45.720 seeing a pretty marked decline. I think it's on track 0:02:45.720 --> 0:02:48.600 for his biggest weekly drop in around six weeks. And 0:02:48.720 --> 0:02:52.480 Nikola Interesting News down seven point six percent, the company 0:02:52.520 --> 0:02:55.880 tweeting about a fire at their facility in Phoenix and 0:02:55.960 --> 0:03:00.840 saying that they suspect foul play. Bloomberg is investigating that story. 0:03:01.000 --> 0:03:03.560 From public markets to a name in the private space 0:03:03.600 --> 0:03:07.560 and technology. Twitter needs to put more resources towards addressing 0:03:07.840 --> 0:03:11.079 sensitive content ahead of elections if it wants to comply 0:03:11.520 --> 0:03:14.919 with strict new European regulations ahead of a deadline in August. 0:03:15.320 --> 0:03:18.720 We discuss the matter with Heierry Breton, the EU's Internal 0:03:18.760 --> 0:03:19.480 Market Commissioner. 0:03:19.520 --> 0:03:19.960 Have a listen. 0:03:20.520 --> 0:03:24.160 He made very clear that he will he will comply 0:03:24.280 --> 0:03:27.799 with our regulation and that he believes that DSA is 0:03:27.800 --> 0:03:30.200 a good regulation. And this is what he wants to 0:03:30.240 --> 0:03:36.600 do so again, I proposed to all of them, including Twitter, 0:03:37.320 --> 0:03:42.920 to a a stress test in their headquarters to make 0:03:42.960 --> 0:03:45.760 sure that they will understand what they have to do 0:03:45.800 --> 0:03:48.600 to be ready. He accepted. He's the first one, by 0:03:48.640 --> 0:03:51.800 the way to accept it, which is of course a 0:03:51.880 --> 0:03:55.600 good time. And my team spent two days so and 0:03:55.760 --> 0:04:00.240 reviewed many many programs saone to put in place. Is 0:04:00.240 --> 0:04:02.800 going in the right direction. And of course I don't 0:04:02.840 --> 0:04:08.440 have to comment, but uh, there's some work to be done, 0:04:09.320 --> 0:04:15.480 but the programs are well identified. Of course you're mentioning 0:04:15.600 --> 0:04:18.440 the code of Conduct CONN of connects something different color 0:04:18.560 --> 0:04:22.880 conduct is a voluntary code. This is the difference between 0:04:23.000 --> 0:04:27.520 a law and a voluntary code. I know that when 0:04:27.520 --> 0:04:29.400 you don't have the time to make a law, you 0:04:29.520 --> 0:04:33.640 proposed a voluntary code. But a voluntary code, per definition, 0:04:33.880 --> 0:04:35.839 is voluntary. It's not biding. 0:04:37.000 --> 0:04:37.279 Uh. 0:04:37.360 --> 0:04:43.000 And and for this specificity in the digital space, it 0:04:43.120 --> 0:04:46.880 is important now to have biding rules. It's difficult because 0:04:46.880 --> 0:04:50.320 of course you need as a politician to convince everyone, 0:04:50.839 --> 0:04:56.360 to convince your house, your Senate is complex, but that's 0:04:56.400 --> 0:04:57.160 the only way to do. 0:04:57.880 --> 0:05:00.560 And what was your impression of Linda Ya Koreena The 0:05:00.640 --> 0:05:01.800 new CEO of Twitter. 0:05:02.680 --> 0:05:07.560 I think she was very engaged. Of course, I understand 0:05:07.560 --> 0:05:13.359 that it's her first month as a intraider as a CEO, 0:05:14.160 --> 0:05:17.719 but she was really and on and she was attending 0:05:17.720 --> 0:05:23.279 the meeting, and she gave me the feelings that she's 0:05:23.320 --> 0:05:28.599 definitely willing to do everything everything text to him to 0:05:28.640 --> 0:05:29.680 comply with our ours. 0:05:31.760 --> 0:05:35.799 That was the European Commission Internal Market Commissioner Briton. 0:05:35.880 --> 0:05:37.599 For more, we're joined by Bloomberg. 0:05:37.160 --> 0:05:40.440 Sarah Fryer, the editor that conducted that interview. In Sarah, 0:05:40.480 --> 0:05:42.560 thet's start with a stress test. You and I have 0:05:42.640 --> 0:05:45.120 been covering Twitter, the ins and outs for years. 0:05:45.760 --> 0:05:47.279 What is a stress test though? 0:05:47.480 --> 0:05:50.239 What is a stress test of a social media platform 0:05:50.360 --> 0:05:50.880 like Twitter? 0:05:52.200 --> 0:05:55.440 Commissioner Britton told me that he spent the last couple 0:05:55.480 --> 0:05:58.360 of days in his team as well, looking through and 0:05:58.400 --> 0:06:03.360 seeing what actually does Twitter have built into its systems 0:06:03.400 --> 0:06:06.840 to comply with the rules that will go into effect 0:06:06.920 --> 0:06:11.040 in August on disinformation on harmful content. And Twitter does 0:06:11.080 --> 0:06:15.120 not currently do that, by the way, and that doesn't 0:06:15.160 --> 0:06:18.920 matter to Briton, he says, I don't need I asked him, 0:06:18.920 --> 0:06:22.040 do you actually trust that, you know? Given how they've 0:06:22.080 --> 0:06:25.080 been so permissive of certain kinds of content since must 0:06:25.160 --> 0:06:27.680 take over. Do you actually trust that he is going 0:06:27.760 --> 0:06:31.520 to follow through with this? They have declined to comply 0:06:31.680 --> 0:06:34.880 with the Voluntary Disinformation Code as he was talking about, 0:06:35.120 --> 0:06:36.839 and he says, you know what, I don't have to trust. 0:06:37.600 --> 0:06:40.080 I just need them to be ready to follow the 0:06:40.200 --> 0:06:43.160 law when it goes into effect. That's all that matters. 0:06:43.560 --> 0:06:48.960 So basically his message is if they don't comply with 0:06:49.080 --> 0:06:51.719 this law, they don't get access to the EU market. 0:06:52.120 --> 0:06:54.240 And he thinks that that will be a big enough incentive, 0:06:54.680 --> 0:06:56.760 not just her Twitter, but for Meta, for the other 0:06:56.800 --> 0:07:01.200 social media companies that will be affected, to to follow 0:07:01.279 --> 0:07:05.080 through on what he's what he is coming here to 0:07:05.440 --> 0:07:07.880 San Francisco to say is going to be important. 0:07:08.600 --> 0:07:11.119 Sarah, My understanding is the Commission has been pretty busy 0:07:11.200 --> 0:07:13.600 while he's been out here in the Bay Area taking 0:07:13.640 --> 0:07:15.679 other meetings with other technology names. 0:07:17.480 --> 0:07:20.520 He's meeting today with Tam Altman of Open Ai. He's 0:07:20.560 --> 0:07:24.840 meeting Mark Zuckerberg of Meta, and Jensen Wang of Nvidia. 0:07:25.600 --> 0:07:28.120 So you know, Briton's not just talking about the Digital 0:07:28.160 --> 0:07:32.960 Services Act. He's talking about the the AI regulation that 0:07:33.000 --> 0:07:34.800 he wants to put into effect. Now that's not a 0:07:34.880 --> 0:07:40.280 law yet, but that's going to require companies to think 0:07:40.320 --> 0:07:43.560 about how they're building their AI. He wants to encourage 0:07:43.600 --> 0:07:46.600 them to not build it in directions that he thinks 0:07:46.640 --> 0:07:51.560 would be bad for society, such as social monitoring, you know, 0:07:51.600 --> 0:07:55.440 grading people based on their social media habits or facial recognition. 0:07:55.480 --> 0:07:58.679 There are some forms of AI that that he thinks 0:07:58.760 --> 0:08:01.160 will be harmful, and so if he can put those 0:08:01.160 --> 0:08:05.440 regulations into place early enough, then maybe when the companies 0:08:05.440 --> 0:08:07.800 decide where they want to invest going forward, they won't 0:08:07.840 --> 0:08:10.760 invest in those areas and they will put you know, 0:08:11.120 --> 0:08:14.360 and this race to build AI products, they will put 0:08:14.360 --> 0:08:17.400 their money into things that are a little bit better 0:08:17.440 --> 0:08:18.120 for society. 0:08:18.760 --> 0:08:21.280 Bloomberg's Big Tech editor Sarah for I thank you. It's 0:08:21.320 --> 0:08:24.400 not the EU just visiting these shores. We also have 0:08:24.560 --> 0:08:28.120 visitors from other nations. India Prime Minister or Andromody is 0:08:28.160 --> 0:08:30.559 wrapping up his time in the US with a state 0:08:30.600 --> 0:08:33.360 dinner at the White House, where tech leaders from Apple 0:08:33.520 --> 0:08:37.160 to Google to Microsoft descended on the president's home. From 0:08:37.160 --> 0:08:40.280 more that's bringing Bloomberg's Nick Wadhams out in Washington, d C. 0:08:40.400 --> 0:08:45.480 It's interesting the Biden administration pulling two things together Nearendromod's 0:08:45.559 --> 0:08:48.280 visit and technology executives. 0:08:48.480 --> 0:08:51.280 Well, it's pretty fascinating because what you're seeing in real 0:08:51.320 --> 0:08:55.560 time essentially is the entire tech sector saying, Oops, we 0:08:55.640 --> 0:09:01.000 need to protect ourselves given the geopolitical life that's happening 0:09:01.040 --> 0:09:05.079 with China, and hey, India looks like a really appealing alternative. 0:09:05.679 --> 0:09:08.360 Still pretty tentative steps right now, but you know, in 0:09:08.400 --> 0:09:12.400 all sorts of areas AI Semiconductor's defense, there are just 0:09:12.480 --> 0:09:15.240 all sorts of partnerships and deals where they're essentially looking 0:09:15.280 --> 0:09:18.720 to fulfill what they and the administration say as a 0:09:18.760 --> 0:09:22.880 push toward friends shoring, so instead of offshoring, sending all 0:09:22.920 --> 0:09:26.880 their production to China, cutting down some of their vulnerabilities 0:09:26.920 --> 0:09:28.800 and going to a country that looks a little more 0:09:28.800 --> 0:09:29.760 friendly to the US. 0:09:30.720 --> 0:09:33.479 It's interesting you have the dinner last night. Our understanding 0:09:33.559 --> 0:09:36.080 is that there'll be more meetings this morning with that 0:09:36.120 --> 0:09:39.320 group of technology CEOs. Some of them have an interest, 0:09:39.440 --> 0:09:42.000 right Sam Altman has been to India, the CEO of 0:09:42.040 --> 0:09:42.559 Open AI. 0:09:42.679 --> 0:09:43.240 There's been a. 0:09:43.160 --> 0:09:46.360 Big emphasis and what Apple is doing both in that 0:09:46.520 --> 0:09:49.560 market but also in its supply chains. It makes you 0:09:49.559 --> 0:09:53.040 think about the relationship between the US and India. Strategically, Nick, 0:09:53.280 --> 0:09:56.040 which is your domain, right, How does the US view 0:09:56.080 --> 0:09:59.599 India as a technology partner, a supply chain partner, a 0:09:59.720 --> 0:10:02.120 geo political partner in the context of Asia. 0:10:03.320 --> 0:10:07.800 Well, it's really confusing, and in some ways the ground 0:10:07.840 --> 0:10:10.920 is really shifting because for a while the US has 0:10:11.000 --> 0:10:15.199 wanted to approach India as much more of a strategic partner, 0:10:15.240 --> 0:10:19.360 partly as a counterbalance to China. But on the other hand, 0:10:19.720 --> 0:10:22.199 in a lot of ways, India has not necessarily been 0:10:22.240 --> 0:10:24.920 willing to play ball. So they're not willing to just say, hey, 0:10:24.920 --> 0:10:27.240 we're going to form some big strategic alliance with the 0:10:27.360 --> 0:10:30.440 United States. We have other interests. For example, they have 0:10:30.600 --> 0:10:34.520 not condemned Russia's invasion of Ukraine. They've taken a much 0:10:34.520 --> 0:10:37.120 more ambivalent stance. They see themselves in some way as 0:10:37.160 --> 0:10:41.240 sort of a representative of what Narendramot he called yesterday 0:10:41.240 --> 0:10:44.400 in his speech to Congress, the global South. So they 0:10:44.400 --> 0:10:48.560 are not necessarily interested in just being this shoulder to 0:10:48.600 --> 0:10:51.280 shoulder partner with the United States. But they do want 0:10:51.600 --> 0:10:56.480 to bring in US money, US business advance their own economy, 0:10:56.600 --> 0:10:59.240 so they are eager to play that role. And then 0:10:59.280 --> 0:11:02.720 you see these tech companies essentially coming in and saying, Okay, well, look, 0:11:02.760 --> 0:11:05.520 this is a partner where we could it could be 0:11:05.559 --> 0:11:08.200 a lot safer for us than China, given off of 0:11:08.240 --> 0:11:14.199 the problems that China has imposed on us companies, also 0:11:14.240 --> 0:11:17.440 the intellectual property theft, a whole other range of issues 0:11:17.480 --> 0:11:19.960 that's making them reconsider their connections to China. 0:11:20.920 --> 0:11:23.280 The most Nick wardams out in DC, fascinating that we 0:11:23.320 --> 0:11:25.240 have the EU here in the Bay Area, then DC, 0:11:25.360 --> 0:11:27.600 we have all the tech executives from the Bay Area 0:11:27.960 --> 0:11:31.760 in DC and President Biden really interacting with that sector. 0:11:31.760 --> 0:11:32.680 Thank you for your time. 0:11:41.760 --> 0:11:46.439 Pendulum Therapeutics is a biotech company specializing in metabolic health 0:11:46.720 --> 0:11:50.880 through its micro bio targeted product products. Academy Award winning 0:11:50.880 --> 0:11:54.319 actress Halle Berry joined the company as an equity investor 0:11:54.720 --> 0:11:58.520 and chief Communications officer, also a director earlier this year 0:11:58.840 --> 0:12:02.520 after prioritizing her own metabolic health with Pendulum's products. I 0:12:02.520 --> 0:12:05.480 caught up with both her and Pendulum co founder and CEO, 0:12:05.800 --> 0:12:10.000 doctor Colleen Cutliffe at the Bloomberg Technology Summit yesterday and 0:12:10.600 --> 0:12:13.000 it was an interesting conversation. I said to her, how 0:12:13.000 --> 0:12:16.760 did you get into this? And She basically is saying, well, 0:12:17.280 --> 0:12:20.160 I had some problems, I used a product, it worked, 0:12:20.320 --> 0:12:23.319 I became an investor. Now I'm all in. She described 0:12:23.320 --> 0:12:26.520 it to me as her second act. She's still acting, 0:12:27.000 --> 0:12:29.240 but now this is the first step into her becoming 0:12:29.240 --> 0:12:34.400 an investor, a director of a company, and maybe something more. 0:12:34.440 --> 0:12:36.199 She promises she'll come back. 0:12:36.480 --> 0:12:39.319 AI also very much at the center of the discussions 0:12:39.360 --> 0:12:42.559 we were having at the Bloomberg Technology Summit. Here's what's 0:12:42.559 --> 0:12:45.120 something the speakers weighing in on the future of AI 0:12:45.400 --> 0:12:49.160 had to say, from everything cybersecurity related to calling for 0:12:49.240 --> 0:12:52.520 democratization of the technology. 0:12:54.040 --> 0:12:57.160 We think this technology, the benefits that access to it, 0:12:57.200 --> 0:12:59.360 the governance of it, belongs to him and they as 0:12:59.360 --> 0:12:59.680 a whole. 0:13:00.120 --> 0:13:04.079 This genitive of AI opportunity is huge. We don't know 0:13:04.320 --> 0:13:07.280 yet all of the different applications that are going to 0:13:07.280 --> 0:13:10.400 come up. We're seeing that just we mean, the past 0:13:10.480 --> 0:13:13.920 six months is a revolution. The number of companies coming 0:13:14.000 --> 0:13:14.840 with use cases. 0:13:15.360 --> 0:13:17.800 We'll also see and I think people have heard a 0:13:17.800 --> 0:13:20.440 lot of this today. AI coming more and more to 0:13:20.520 --> 0:13:24.800 the forefront, both to help folks stay productive and from 0:13:24.800 --> 0:13:26.200 a security perspective. 0:13:26.360 --> 0:13:28.760 If we do our job right, I think it should 0:13:28.960 --> 0:13:30.840 buttress our existing leadership position. 0:13:30.960 --> 0:13:33.720 The cloud, it can detect a fair amount of stuff, 0:13:34.160 --> 0:13:36.520 but there's a lot of subtle stuff that humans detect 0:13:36.640 --> 0:13:38.240 that AI doesn't. And so I think we have to 0:13:38.240 --> 0:13:41.480 ask ourselves are we happy with the road we're going down, 0:13:41.960 --> 0:13:44.320 because we're about to accelerate that road, and if we 0:13:44.360 --> 0:13:47.440 want to maybe make some course correction, now is the 0:13:47.480 --> 0:13:48.960 time to do it. And this is why I think 0:13:49.040 --> 0:13:52.400 discussion shouldn't just be about AI, but should be about 0:13:52.440 --> 0:13:53.320 what kind of world. 0:13:53.080 --> 0:13:53.719 Do we want to live in? 0:13:53.880 --> 0:13:56.640 What do we want to do with this technology? 0:13:58.760 --> 0:14:01.600 You know what's get some more of the conversation and 0:14:01.640 --> 0:14:04.520 go back to that conversation with halle Berry and clean 0:14:04.520 --> 0:14:05.640 cut lift of Pendulum. 0:14:05.640 --> 0:14:06.120 Have a listen. 0:14:06.800 --> 0:14:09.640 What was it like launching. 0:14:09.240 --> 0:14:12.360 And growing a business at first, and including raising money 0:14:12.360 --> 0:14:15.559 from a big name bench capital firm. You know, in 0:14:16.040 --> 0:14:22.920 other even in the intersection of medicine and foods, you know, 0:14:23.080 --> 0:14:26.640 there is issues of regulation non regulation. They are often 0:14:26.680 --> 0:14:30.800 born out of academia. I'm just fascinated by the origin 0:14:30.840 --> 0:14:31.760 story of this company. 0:14:32.720 --> 0:14:35.800 Well, I think, as with any big initiative, when you started, 0:14:35.880 --> 0:14:38.080 you don't necessarily know what you're taking on, and so 0:14:38.080 --> 0:14:40.840 it's lessly ignorance and naivete that got us here. I 0:14:40.880 --> 0:14:44.400 think it's you know, we knew that the gut microbiome 0:14:44.680 --> 0:14:47.760 was a new frontier and science. Our first investors were 0:14:47.800 --> 0:14:49.840 not an ABC's, it was the Male Clinic because they 0:14:49.840 --> 0:14:53.320 agreed there's something really interesting about the gut and how 0:14:53.320 --> 0:14:55.760 we can taggle diseases around it, and that was it. 0:14:55.760 --> 0:14:58.080 It was a very simple premise. The gut microbiome is 0:14:58.080 --> 0:14:58.960 an entirely new. 0:14:58.920 --> 0:15:01.400 Organ that has never been targeting before that can help 0:15:01.400 --> 0:15:02.720 people with a myriad of diseases. 0:15:03.080 --> 0:15:05.040 And from there it just we step forward. 0:15:05.120 --> 0:15:07.240 And I think when you have a vision like that 0:15:07.360 --> 0:15:10.480 about looking at kind of shelves of probiotics and saying. 0:15:10.280 --> 0:15:11.320 We're not even in there. 0:15:11.400 --> 0:15:14.840 We're really a technology based company using DNA sequencing and 0:15:14.880 --> 0:15:18.200 metabolic maps and you know, this high end manufacturing that 0:15:18.280 --> 0:15:20.360 nobody else in the world is doing to create these products. 0:15:21.560 --> 0:15:25.520 We ended up attracting the kind of investors that like 0:15:25.600 --> 0:15:28.680 to see world changing in category creating products, and we 0:15:28.720 --> 0:15:31.120 attract the kind of talent that wants to get involved 0:15:31.160 --> 0:15:34.200 in something that they've seen that's different than anything else 0:15:34.200 --> 0:15:35.000 they've experienced. 0:15:35.040 --> 0:15:36.480 And so we've been very. 0:15:36.360 --> 0:15:39.200 Fortunate in that it seemed from a science standpoint, there 0:15:39.240 --> 0:15:42.160 was an obvious opportunity, and all along the way, we've 0:15:42.200 --> 0:15:45.400 just been surrounded by amazing people who see that vision too. 0:15:45.480 --> 0:15:47.320 You're part of your role is you know, thinking about 0:15:47.360 --> 0:15:49.880 future investors, but also growing the brand. 0:15:49.880 --> 0:15:54.280 It's a consumer product, right, so scale it for me. 0:15:54.680 --> 0:15:56.160 Tell me how you take the mess out. 0:15:56.040 --> 0:15:59.600 There but then get it in more lanes for sale 0:15:59.640 --> 0:16:01.560 and more consumers stomachs. 0:16:02.160 --> 0:16:04.560 Well, I think it all starts with, you know, communication, 0:16:04.960 --> 0:16:07.960 talking about it, getting them to get interested in the brand, 0:16:07.960 --> 0:16:10.040 getting them to go try it to see for themselves. 0:16:10.120 --> 0:16:12.400 Like Colleen and I always talk about, don't just take 0:16:12.440 --> 0:16:14.720 it because I say. What I would love people to 0:16:14.760 --> 0:16:16.480 do is go try it because I ask them to, 0:16:16.800 --> 0:16:18.880 and then they decide for themselves. And I think that's 0:16:18.880 --> 0:16:21.480 how you start to scale it because it really does work. 0:16:21.880 --> 0:16:24.680 You know, it's not one of these products that just 0:16:24.720 --> 0:16:25.720 has a pretty package. 0:16:25.840 --> 0:16:27.160 As a matter of fact, it didn't have such a 0:16:27.200 --> 0:16:29.080 pretty package when I came along and I said, you need. 0:16:29.000 --> 0:16:30.400 To put this product in a pretty package. 0:16:30.400 --> 0:16:33.240 Because what I find is things that often sometimes scale 0:16:33.400 --> 0:16:34.400 sometimes it's marketing. 0:16:34.640 --> 0:16:35.840 You know, they have a pretty. 0:16:35.520 --> 0:16:38.359 Bottle and it's marketed the right way, and as consumers, 0:16:38.520 --> 0:16:41.720 we're often drawn to that. So now, knowing that she's 0:16:41.760 --> 0:16:44.760 got this like old class product here, I said to her, 0:16:44.920 --> 0:16:46.760 now it has to look like that too, because that 0:16:47.000 --> 0:16:49.680 is very much a part of how we buy as consumers. 0:16:49.920 --> 0:16:54.080 What's the future IPO raise more money, sell to a 0:16:54.120 --> 0:16:56.080 bigger player in. 0:16:57.160 --> 0:16:58.240 An an analogous field. 0:16:58.400 --> 0:17:00.560 You know, how do you feel about that stage of 0:17:00.600 --> 0:17:01.680 the company's life cycle. 0:17:02.640 --> 0:17:05.000 I mean, from the day we started the company to 0:17:05.000 --> 0:17:06.800 today to what I hope is going to be true 0:17:06.880 --> 0:17:09.919 into the infinite future. The company has been centered and 0:17:09.960 --> 0:17:11.959 grounded in how do we help people? 0:17:12.119 --> 0:17:13.720 And so right now we're helping tens. 0:17:13.560 --> 0:17:15.280 Of thousands of people, And so when I think about 0:17:15.280 --> 0:17:17.480 the future is how do we get to hundreds of 0:17:17.480 --> 0:17:18.480 thousands of people to. 0:17:18.480 --> 0:17:20.280 Millions of people? And that's what it's all about. 0:17:20.280 --> 0:17:22.480 And I think if you create a product that people 0:17:22.560 --> 0:17:25.199 love and it's bringing benefits to the world, all of 0:17:25.240 --> 0:17:27.160 that other financial stuff will just go on a place. 0:17:36.720 --> 0:17:39.800 Cloud computing firm fastly holding its annual investor Day, with 0:17:39.840 --> 0:17:42.879 the company projecting up to nine hundred million dollars in 0:17:43.000 --> 0:17:45.800 twenty twenty six revenue for more. We're joined by Fastly 0:17:45.960 --> 0:17:49.440 CEO Todd nineteen Gale. We joined the company last September. 0:17:49.440 --> 0:17:51.119 We're going to go into some of what you discussed, 0:17:51.520 --> 0:17:55.440 but there's only one question. How does fastly use artificial 0:17:55.480 --> 0:17:57.960 intelligence to improve its products? 0:17:59.119 --> 0:18:01.680 That is a great question and then obviously super top 0:18:01.720 --> 0:18:05.440 of mind for everyone, of course, just like every other company, 0:18:05.520 --> 0:18:09.919 especially tech companies, we use artificial intelligence to improve our offerings, 0:18:09.960 --> 0:18:13.880 specifically in traffic engineering, which is really near and dear 0:18:13.960 --> 0:18:16.400 to how we deliver best in class performance. 0:18:16.440 --> 0:18:18.000 That's core to our value proposition. 0:18:18.359 --> 0:18:22.199 But I think what's really interesting for Fastly especially is 0:18:22.240 --> 0:18:26.600 the opportunity to bring our customers AI workloads into the edge. 0:18:26.840 --> 0:18:30.240 We partner closely with centralized cloud providers where those models 0:18:30.240 --> 0:18:33.800 are trains but trained, but running an inference model at 0:18:33.800 --> 0:18:37.119 the edge has the power to deliver best in class 0:18:37.160 --> 0:18:42.119 sort of next generation you know, AI user experience, and 0:18:42.320 --> 0:18:44.600 user experience is what we focus on a Fastly, So 0:18:44.640 --> 0:18:47.399 we're kind of super excited about this new focus on AI. 0:18:48.240 --> 0:18:51.199 So the edge cloud market, you know, we discussed this 0:18:51.240 --> 0:18:54.840 on the program all the time. Microsoft, Google AWS. It's 0:18:54.880 --> 0:18:57.159 going to be hard, like how much of that market 0:18:57.160 --> 0:18:58.720 are they going to allow you to have. 0:19:00.520 --> 0:19:02.920 AWS gcp azure. 0:19:03.480 --> 0:19:08.199 These are core cloud technology providers. I as providers that 0:19:08.240 --> 0:19:13.320 operate these massive core cloud technologies, and every one of 0:19:13.320 --> 0:19:16.800 our customers uses a central cloud provider. We don't compete 0:19:16.800 --> 0:19:22.440 against those folks, and largely that's great. We believe deeply 0:19:22.480 --> 0:19:25.280 in our customers, believe deeply in a multi cloud architecture 0:19:25.600 --> 0:19:28.399 where they use those resources in the core and they 0:19:28.440 --> 0:19:32.680 leverage the edge cloud for super low latency experiences to 0:19:32.840 --> 0:19:37.000 drive content where the user experience, the speed, the performance 0:19:37.440 --> 0:19:40.959 is important. That's why Fastly is focused on fast, safe, 0:19:41.280 --> 0:19:43.320 and engaging end user experiences. 0:19:43.920 --> 0:19:46.280 You know, the market love this number of putting out 0:19:46.280 --> 0:19:47.399 for twenty twenty six. 0:19:47.960 --> 0:19:49.000 It's a long way away. 0:19:49.400 --> 0:19:51.480 I want to hear about what you're saying right now. 0:19:51.720 --> 0:19:54.480 You know what's driving growth for you right now in. 0:19:54.400 --> 0:19:55.720 This core to next quarter. 0:19:56.480 --> 0:20:02.000 Yeah, we're really pivoting Fastly hard right now towards aggressive 0:20:02.040 --> 0:20:06.480 customer acquisition, towards driving growth across our business and really 0:20:06.680 --> 0:20:10.320 financial rigor not just top line growth, but improving our 0:20:10.320 --> 0:20:13.720 bottom line as well. But really, what's driving the change 0:20:13.880 --> 0:20:17.159 in so many ways is a refocus, a refocus on 0:20:17.240 --> 0:20:20.359 delivering the best user experience with platform unifications, so that 0:20:20.359 --> 0:20:23.960 our customers have a simpler experience end to end and 0:20:24.000 --> 0:20:26.720 they can really partner with Fastly, not just on one 0:20:26.760 --> 0:20:30.679 product line like content delivery, but across our portfolio. That 0:20:30.760 --> 0:20:33.720 makes our sales teams, land and expand motion so much 0:20:33.760 --> 0:20:37.240 easier as they expand from content delivery to security, to 0:20:37.320 --> 0:20:42.840 compute to observability. It's also amazing We've just launched a 0:20:42.880 --> 0:20:47.280 new partner program where our systems integrators systems integrator partners 0:20:47.320 --> 0:20:49.680 can take to market not just content, not just security, 0:20:49.720 --> 0:20:53.640 but our whole portfolio. That's driving amazing deal registration, which 0:20:53.680 --> 0:20:56.000 is filling the top of our pipeline and I think 0:20:56.040 --> 0:20:58.800 really setting us up to change the growth and the 0:20:58.840 --> 0:20:59.919 acceleration of the company. 0:21:00.480 --> 0:21:03.440 Todd, your core business is Content Delivery Network or CDN 0:21:03.520 --> 0:21:06.320 to all the CTOs that check into to our show. 0:21:06.320 --> 0:21:09.120 It's such a mature market. So how do you navigate 0:21:09.119 --> 0:21:10.040 a mature market? 0:21:10.720 --> 0:21:10.879 You know? 0:21:10.920 --> 0:21:12.320 I think innovation is the key. 0:21:12.359 --> 0:21:17.200 We're innovators at Fastly and CDN the kind of legacy 0:21:17.240 --> 0:21:21.080 CDN technology that that is not what's happening at Faster 0:21:21.200 --> 0:21:23.399 right now, That's not what customers come to Fastly for. 0:21:24.240 --> 0:21:27.960