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Speaker 1: From Mahart.

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Speaker 2: We're Innovation of Money and Power co Lie in Silicon

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Speaker 2: Vallet NBN. This is Bloomberg Technology with Caroline Hyde and

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Speaker 2: Ed Loved.

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Speaker 3: Love live from New York and San Francisco. This is

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Speaker 3: Bloomberg Technology coming up Apple's iPhone sixteen. It hits the

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Speaker 3: stores today without the crucial AI features what people buy.

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Speaker 4: And Microsoft's AI power needs prompt the revival of a

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Speaker 4: dormant reactor.

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Speaker 3: Plus we hear from Salesforce CEO Marc Benioff and from

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Speaker 3: the company's head of ventures. But first, let's just check

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Speaker 3: in on these markets as we round out a risk.

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Speaker 3: On week, we are up more than a percentage of point.

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Speaker 3: Let's put it at that for the Nasdaq one hundred.

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Speaker 3: Remember significant gains on this benchmark the previous week, where

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Speaker 3: we eclipsed to five percent gain extraordinary moves. We dive

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Speaker 3: back on the day Ed we have digested the federal

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Speaker 3: reserve whopping cuts. What does that now mean for a

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Speaker 3: little bit of profit taking happening in the MAGS seven

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Speaker 3: for example? But what are you watching in terms of

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Speaker 3: a key name.

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Speaker 4: Going straight to Apple? Apple ups six tens of one

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Speaker 4: percent the iPhone sixteen lineup goes on sale today sixty

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Speaker 4: countries around the world. You will have seen the scenes

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Speaker 4: in New York City, Caro here in San Francisco, the

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Speaker 4: same thing. There's a lot of questions about how or

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Speaker 4: whether or not this will drive an upgrade cycle. So

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Speaker 4: we think about the iPhone in the context of Apple's

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Speaker 4: overall portfolio of products. It is critically important. That's why

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Speaker 4: this pie chart tells the story, right. I think there's

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Speaker 4: a lot of skepticism about the innovation, the main innovation

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Speaker 4: being a button on the side of the handset for

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Speaker 4: camera control. Will that be enough? Is the delay of

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Speaker 4: the release of Apple Intelligence, its generative AI platform to

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Speaker 4: a later date going to impact this cycle? Those are

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Speaker 4: all things that we need to consider.

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Speaker 5: Got the perfect voice to do it with the Rilla profile,

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Speaker 5: Senior research director at IDC.

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Speaker 3: You run the numbers, you tell us a future of

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Speaker 3: how integral the iOS system and Apple remains. Look, are

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Speaker 3: you anticipating growth ultimately of market share Apple here?

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Speaker 6: So you know, we all recognized, like right at the

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Speaker 6: time of launch, right the features and everything that was announced.

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Speaker 6: It was exciting, but a lot of people were disappointed.

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Speaker 7: However, for those.

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Speaker 6: Who you know, really follow the market market. I think

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Speaker 6: we an't understand it's a long term play, right. It

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Speaker 6: is definitely a first step for Apple in a long

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Speaker 6: journey and in a big step, I think, so long term,

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Speaker 6: we do expect this to you know, improve and impact

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Speaker 6: Apple in a very positive way. But this year we're

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Speaker 6: not expecting iPhone sixteen launch, you know, despite the hype

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Speaker 6: and the marketing and the introduction of Apple Intelligence, even

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Speaker 6: if it's a little bit rolled out a little later,

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Speaker 6: we don't expect that to cause an upgrade cycle.

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Speaker 7: This year.

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Speaker 6: We think things will be slow to to pick up.

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Speaker 6: But next year, however, we are expecting a four percent

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Speaker 6: growth for our.

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Speaker 5: Apple Why why the four percent acceleration?

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Speaker 7: So you know, we've moved it up.

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Speaker 6: I think it was about one or two percent, but

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Speaker 6: after you know, all the announcements of WWDC and when

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Speaker 6: we put out our forecasts, which was just a few

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Speaker 6: weeks ago, given everything that we've seen already talked about

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Speaker 6: Apple Intelligence of what's to come, right, I think it's

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Speaker 6: not really about what's here today, but by next year

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Speaker 6: what's going to happen. We're going to get language being

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Speaker 6: rolled out and hopefully the issues with the you know,

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Speaker 6: introduction of Apple Intelligence and EU and in China with

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Speaker 6: partnerships being established, we think that will really help accelerate

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Speaker 6: the momentum towards you know, the Apple Intelligence fold, whether

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Speaker 6: it's sixteen, you know, towards later next year or the

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Speaker 6: seventeen series, especially because I think right now it's still

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Speaker 6: new in terms of the use cases. But as consumers

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Speaker 6: start using it and they see their friends and family

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Speaker 6: use it, and of course marketing picks up, consumer awareness

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Speaker 6: and education increases, we do think, you know that those

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Speaker 6: all those factors combined together will create sort of a

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Speaker 6: bump of a certain percentage of people like that are

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Speaker 6: because the average of fresh cycle.

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Speaker 7: Nows are about four years and even five years.

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Speaker 6: Right, we know plenty of people that have iPhone elevens

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Speaker 6: and iPhone X, but next year, we're thinking it's going

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Speaker 6: to lead to those with the thirteens or the fourteens

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Speaker 6: even thinking, hey, you know what I want the seventeen.

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Speaker 4: So Nabida, you and I were together at Apple Park

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Speaker 4: just last week, it seems like a long time ago.

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Speaker 4: I think it's worth reminding the audience of how Tim

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Speaker 4: Cook summarized this generation of phone.

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Speaker 8: This is this the innovation and invention these products deliver

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Speaker 8: will continue to deepen the meaningful impact they have on

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Speaker 8: all of our lives. I'm proud of our teams and

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Speaker 8: what they've accomplished, and I can't wait for you to

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Speaker 8: experience these amazing products.

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Speaker 4: So then I look at your own research, your IDC

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Speaker 4: forecasts for shit mints of smartphones in the years to come,

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Speaker 4: and generate today I And that's my question for you.

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Speaker 4: The innovation Tim Cook's talking about, It's not really on

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Speaker 4: the hardware side, is it.

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Speaker 7: No, And you know they.

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Speaker 6: Drove that message very very clearly, right, It's really about

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Speaker 6: the change of the user experience. Right, How is these

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Speaker 6: new features going to improve your life? And how are

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Speaker 6: they going to make your lives easier? And of course

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Speaker 6: they showcase some of those use cases, but I think

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Speaker 6: it's just really in the long run, going to change

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Speaker 6: the complete way we interact with our smartphones, right. And

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Speaker 6: I think that's when jen Ai or the super cycle,

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Speaker 6: the refresh will really really kick, when those digital assistants

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Speaker 6: start coming into play where we can just talk to

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Speaker 6: our phones rather than having to go into multiple apps

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Speaker 6: to do the task we need to do.

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Speaker 7: And I'm really excited for when that happens.

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Speaker 3: So software innovation the hardware innovation. Well, that Limelight got

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Speaker 3: stolen by Huawei a few hours after Apple. It feels like, look,

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Speaker 3: not everyone wants a trifle phone, but how are we

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Speaker 3: seeing innovation? Mean that we all pulling away from market

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Speaker 3: share in China.

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Speaker 6: So definitely, Huawei's launch, you know, did get a lot

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Speaker 6: of attention and they were trying to showcase in a

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Speaker 6: different way.

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Speaker 7: Right, this is our on the hardware side, right with

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Speaker 7: the foldable device.

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Speaker 6: But the truth of the matter is, you know, while

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Speaker 6: Huawei does remain a very valid competitor for Apple in China, right,

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Speaker 6: we've all seen the number as recently, the foldable segment

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Speaker 6: is still very niche, and we do believe that, you know,

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Speaker 6: in terms of foldables or this specific product impacting Apple negatively,

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Speaker 6: I don't think so. Again, it's a very niche segment,

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Speaker 6: and specifically, you know, with the trifold device, it's still

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Speaker 6: going to be even further niche within the foldables because

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Speaker 6: of supply challenges that Huawei's seeing. But overall, you know,

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Speaker 6: it is a rocky road this year for Apple. But

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Speaker 6: we do hope that with as they you know, resolve

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Speaker 6: the partnership issues in China, especially because AI is a

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Speaker 6: very more important you know, China market consumers are very

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Speaker 6: spec driven. When you compare globally in terms of importance

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Speaker 6: of AI features to consumers, Chinese consumers are more likely

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Speaker 6: to place it incomining.

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Speaker 4: Appurchase Nabila, We were just showing pictures from around the world,

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Speaker 4: including China, sixty countries, right, that's important. I think it's

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Speaker 4: what reminding ourselves. Like some people will buy some iPhone sixteens,

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Speaker 4: it's all relative to prior generations, right that. Could you

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Speaker 4: give any sort of geographical context on where you think

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Speaker 4: this handset will do well and where it will do poorly.

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Speaker 6: In terms of you know, this coming for the rest

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Speaker 6: of this year. We think definitely there's a large installed

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Speaker 6: base of users. Right, Like I mentioned, I'm sure we're

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Speaker 6: all you know, iPhone elevens and X and regions where

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Speaker 6: the refreshed cycles are longer. I think develop markets where

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Speaker 6: Apple has larger share, right, where there's lots of those

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Speaker 6: installed based of older models. I think those are the

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Speaker 6: regions that will this year. So essentially it's not really

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Speaker 6: Apple intelligence that's going to motivate them to buy. It's

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Speaker 6: time for them to upgrade anyway, and I think those

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Speaker 6: new buyers or shorter reverse cycles that's going to happen

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Speaker 6: next year, especially with the trade and promotions. Right right now,

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Speaker 6: it's more of a future proof device with the Apple

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Speaker 6: iPhone sixteenth.

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Speaker 4: Lebe lipa Pow whose research at IDC on smartphone markets

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Speaker 4: so closely followed. Thank you. Good to have you back

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Speaker 4: here on Bloomberg Technology. Okay, coming up on the show,

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Speaker 4: Elon Musk is now on the Secret Services Radar after

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Speaker 4: deleting a post about assassination attempts on presidential candidates. We're

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Speaker 4: going to cover that story next. This is Bloomberg Technology.

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Speaker 4: Israel continues to carry out strikes against Lebanon. Across Lebanon,

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Speaker 4: stepping up hostilities against Hezballah. Thousands of pages and other

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Speaker 4: device is exploding in Lebanon this week mark a new

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Speaker 4: and deadly escalation in the use of supply chains against enemies,

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Speaker 4: an urgency to reduce dependence on technology from rivals. Bloomberg's

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Speaker 4: Dwan Flatley covers national security and joined us from Washington.

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Speaker 4: And you've done some deep reporting with colleagues on this

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Speaker 4: idea that, particularly for cheap goods, that when you go

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Speaker 4: across the supply chain and the assembly of these products.

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Speaker 4: They persent a risk because they can be weaponized. What

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Speaker 4: did you learn?

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Speaker 9: Yeah, it's a fascinating topic, and obviously what happened in

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Speaker 9: Lebanon with these pagers and walkie talkies really I think

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Speaker 9: crystallize the issue in a lot of people's minds. Where

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Speaker 9: before we had we knew coming out of the pandemic

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Speaker 9: that these supply chains were a big deal because we

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Speaker 9: were worried about the cutoff of critical you know, PPE

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Speaker 9: and other things like that, but this is taking it

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Speaker 9: to a whole other level. I mean, I think you

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Speaker 9: have to kind of think about this two categories.

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Speaker 4: Right.

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Speaker 9: You have what happened in Lebanon, which was according to

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Speaker 9: what we've been able to ascertain. You know, Israel has

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Speaker 9: not claimed responsibility for this, but you know the senses

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Speaker 9: that they were involved obviously, and it was a specific

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Speaker 9: hack and a specific sort of intelligence operation that has

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Speaker 9: been used in various contexts, you know, for a long time.

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Speaker 9: This is probably the most dramatic, you know, out outcome

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Speaker 9: of that, but that is something that's been around for

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Speaker 9: a while. And then you have this sort of separate

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Speaker 9: but related issue of supply chains hacking critical infrastructure, and

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Speaker 9: both of those two things kind of come together in

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Speaker 9: our story, which sort of explains and looks at how

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Speaker 9: as supply chains have both been concentrated in some countries

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Speaker 9: like China, for instance, there's a vulnerability there. But at

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Speaker 9: the same time, diversifying your supply chains also creates some

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Speaker 9: vulnerabilities because you have excuse me, more entry points for

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Speaker 9: people to to kind of exploit. So it's you know,

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Speaker 9: it's kind of you there's not a lot of great options.

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Speaker 9: But I think the one thing that folks that we

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Speaker 9: talked to said was we just need more visibility into

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Speaker 9: the supply chain. And so that's one of the takeaways.

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Speaker 3: Let's talk about that visibility because many would say, look,

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Speaker 3: it is now that the US says this, but previously

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Speaker 3: the US and spies have a history of taking an advantage

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Speaker 3: of the United States dominance in the supply chain. Now

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Speaker 3: the shoes on the other foot, what can be done

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Speaker 3: for investment by US companies to just track the supply chain.

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Speaker 9: Absolutely, I mean, it's a great question because it kind

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Speaker 9: of goes both ways.

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Speaker 2: Right.

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Speaker 9: We've seen this in the context of the Russia Ukraine War,

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Speaker 9: where the US government has really been leaning on companies

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Speaker 9: to get more visibility into the supply chains going out,

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Speaker 9: who are you exporting to, who's not only who is

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Speaker 9: your customer, but who's your customer's customer. And there's a

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Speaker 9: big push on that from the government side, and actually

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Speaker 9: on Capitol Hill a couple of weeks ago there is

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Speaker 9: a big hearing and Intel and Texas Instruments and some

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Speaker 9: other companies were really pressed on this, and basically what

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Speaker 9: they were saying was it's very difficult to get that

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Speaker 9: kind of clarity on not just who you're selling to,

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Speaker 9: but who the people that you're selling to are selling to.

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Speaker 9: So that goes out and then coming in same problem

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Speaker 9: because you're not necessarily sourcing. You know, when you're buying

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Speaker 9: a vast quantity of these types of material semiconductors or whatever,

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Speaker 9: you're not buying it from. You know, you may be

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Speaker 9: buying it from one point, but that vendor is getting

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Speaker 9: it from multiple points. And so it's kind of the

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Speaker 9: double edged source of globalization that we're really seeing here.

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Speaker 9: So it's a very difficult problem to solve.

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Speaker 3: This is where the Internet of Things comes in. Blue

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Speaker 3: mugstand flatten me. We really appreciate your time. Thank you.

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Speaker 5: Meanwhile, one of email Musk's posts.

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Speaker 3: On X is facing an investigation by the Secret Service

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Speaker 3: following the latest assassination attempt of form a. President Donald

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Speaker 3: Trump mask took to X writing quote and no one

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Speaker 3: is even trying to assassinate Biden Comma in a now

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Speaker 3: deleted post for more, Bomberg Stanahal joins us for more,

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Speaker 3: and you learned about this investigation through freedom of information at.

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Speaker 5: Requests to the Secret Service? What did you ask for?

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Speaker 10: Well, so the backup for a minute. When emailon posts things,

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Speaker 10: they see an incredibly wide audience. He has millions of followers.

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Speaker 10: His tweets are often amplified by others. And what was

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Speaker 10: curious to me is that he posted this on Sunday

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Speaker 10: and then he deleted it, and I was wondering why

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Speaker 10: did he delete it? And I deleted and I think

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Speaker 10: I actually tweeted at him like, hey, did you get

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Speaker 10: a phone call from the FBI or the Secret Service?

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Speaker 10: So then I just filed a request to the Secret

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Speaker 10: Service asking you know, do you have records? Are you

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Speaker 10: investigating the side like any email correspondence? And what's funny

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Speaker 10: about Foyer? And there's a little bit of an art

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Speaker 10: to this is that usually it takes quite a while

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Speaker 10: to pry records loose sort of get a response. But

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Speaker 10: I immediately got a response, like within twenty four hours.

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Speaker 10: They sent a record, they said to me a response,

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Speaker 10: and simultaneously, our colleague Jason Leopold, who is like the

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Speaker 10: master of Foyer requests, had also done the same thing.

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Speaker 10: So I was talking to Jason, like, hey, I just

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Speaker 10: want to let you know that I filled this request,

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Speaker 10: and he's like, oh, I did the same thing, and

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Speaker 10: we've gotten very similar responses.

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Speaker 4: So dona just real quick. I mean, it is an our.

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Speaker 4: You know, I've looked to you so often to try

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Speaker 4: and get hold of documentation because you cannot hide from documentation.

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Speaker 4: The response of the Secret Service is really interesting because

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Speaker 4: in the actual response itself, I'm just going to look

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Speaker 4: down on my screen because I don't want to get

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Speaker 4: it wrong that they withheld certain thing because disclosure could

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Speaker 4: reasonably be expected to interfere with enforcement proceedings. And it's

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Speaker 4: that sentence alone that lets us know what's going on

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Speaker 4: in the background between Musk and the Secret Service.

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Speaker 10: Correct, And to be clear, we shouldn't like jump to

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Speaker 10: a conclusion that this means that there will be an

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Speaker 10: enforcement proceeding or that there will be a big outcome.

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Speaker 10: But I think the Secret Service, you know, by a law,

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Speaker 10: I mean they have to investigate anything that could be

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Speaker 10: seen as a credible bet thread or could be seen

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Speaker 10: as something that's a potential incitement of violence, and so

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Speaker 10: it's fairly standard operating procedure that they would look into this.

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Speaker 7: For me, what I just want to know is what

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Speaker 7: happened behind the scenes, Like was.

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Speaker 10: He urged to take this down by investors or members

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Speaker 10: of his family or people in his inner circle. Was

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Speaker 10: there a whole back and forth, you know, with campaigns,

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Speaker 10: or did the Secret Service like call him on the

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Speaker 10: phone and be like, hey, buddy, like this is maybe

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Speaker 10: not so great.

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Speaker 7: Like I just would love to know exactly what happened in.

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Speaker 10: Terms of what inspired him to take him down take

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Speaker 10: it down, because he got quite a lot of backlash

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Speaker 10: and it was up for several hours.

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Speaker 3: ANAHA, the ALTA reporting Thank you Now. Palentiner has won

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Speaker 3: a one hundred million dollar contract that will extend access

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Speaker 3: to AI targeting tools to more US military personnel via

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Speaker 3: the company's Digital Warfare platform. Now this will help create

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Speaker 3: a picture of the same battlefield on thousands of digital

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Speaker 3: screens simultaneously, and it's been used by the US military

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Speaker 3: to help identify targets for airstrikes in the Middle East.

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Speaker 5: This year, Greenberg is reporting that.

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Speaker 3: Constellation Energy, it's the owner of the shuttered three Mile

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Speaker 3: Island nuclear plant over in Pennsylvania, it's hitting record highs

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Speaker 3: in terms of its share price because it's going to

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Speaker 3: restart the reactor and set its output to Microsoft to

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Speaker 3: power you guess, their oftificial intelligence. Bloomberg's Deinabas reported on

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Speaker 3: this and actually there is this florry need for energy.

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Speaker 5: And we're turning to nuclear.

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Speaker 11: Now absolutely, because it's not just energy that Microsoft, Amazon,

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Speaker 11: Google and all the cloud hyper scalers are looking for.

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Speaker 11: They want clean energy. And you know, I think often

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Speaker 11: we talk about solar and wind. Nuclear is also clean.

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Speaker 11: It has some different components. It's always on, whereas wind

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Speaker 11: and solar are a bit more variable. That's both a

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Speaker 11: strength and weakness. One of the reasons Constellation had shut

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Speaker 11: down this site five years ago is that they didn't

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Speaker 11: have you know, the customer.

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Speaker 7: Demand for that always on.

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Speaker 11: Because for green energy, people were trying to pair things

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Speaker 11: with solar and wind which are again more variable. Incomes Microsoft,

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Speaker 11: which needs you know, tremendous amount of clean energy to

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Speaker 11: run its ever expanding fleet of data centers and meet

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Speaker 11: its climate pledges. And those data centers always need to

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Speaker 11: be on so you know, Microsoft, Microsoft Energy chief Bobby

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Speaker 11: Hollis told me it's a good match.

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Speaker 4: It's an interesting deal for Constellation. Obviously, Constellations shares are

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Speaker 4: up significantly. They have to invest one point six billion dollars.

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Speaker 4: But they get a customer who's pledging or contractually applied

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Speaker 4: obliged to buy energy for twenty years. That's the mechanics

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Speaker 4: of the deal. But I guess we have short memories, right, Diana.

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Speaker 4: I remember, let's say two years ago, when not just

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Speaker 4: Microsoft but Amazon as well had very ambitious energy and

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Speaker 4: climate targets.

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Speaker 1: Right.

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Speaker 4: How much is that a priority for Microsoft?

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Speaker 11: So this has been a real issue for Microsoft. They

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Speaker 11: still have these climate targets. One is, you know, all

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Speaker 11: data centers running on green energy by twenty twenty five.

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Speaker 11: And the other, which is the one that they're really

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Speaker 11: not sure they can make at this point because of AI,

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Speaker 11: which is there are pledge to be carbon negative by

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Speaker 11: twenty thirty. They told us last spring that that pledge

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Speaker 11: has been imperiled by the dramatic expansion in AI.

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Speaker 4: So the deal.

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Speaker 11: Today helps them, but it doesn't help them on the

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Speaker 11: hardest problem. The deal today gives them green energy, and

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Speaker 11: so it helps them with the green energy goal. But

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Speaker 11: the biggest reason they are worried about their carbon negative

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Speaker 11: by twenty thirty goal is other the embodied emissions from concrete,

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Speaker 11: steel and chips which sure used in these data centers.

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Speaker 11: So you know this part of the deal today that

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Speaker 11: does not help them with that.

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Speaker 7: That is, as Bobby Hollis told me, a harder problem.

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Speaker 4: Bloombergstina Bess on an important deal but also important development

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Speaker 4: in the world of AI. Thank you. Let's focus on

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Speaker 4: the Xbox side of Microsoft's business, and in particular how

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Speaker 4: it's president Sarah Bond is laying the groundwork for the

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Speaker 4: company's next console in a bid to catch up to

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Speaker 4: Sony and Nintendo. Bloomberg Cecilia the Anastasio joins us. Now

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Speaker 4: this is a deep dive into Sarah Bond, a relative outsider,

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Speaker 4: but now in what's a massive gaming company or arm

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Speaker 4: she's really important. What is she trying to do?

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Speaker 12: Sarah Bond is trying to move the Xbox business beyond

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Speaker 12: the Xbox console. A head of Microsoft Gaming, Phil Spencer,

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Speaker 12: says that they've been selling consoles to the same two

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Speaker 12: hundred million global households, and they really want Xbox to

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Speaker 12: mean more than the plastic box in your living room.

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Speaker 12: Sarah Bond's mandate is to expand xbo games into phones,

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Speaker 12: into next generation hardware shore but also, you know, potentially handheld,

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Speaker 12: which is something that she and her boss have have

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Speaker 12: sort of teased at.

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Speaker 3: Your story is so fascinating because you go into the

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Speaker 3: relationship between her and her boss, how they turn to

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Speaker 3: HR to really ensure that they could communicate more efficiently.

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Speaker 3: But also her history T Mobile, what is she going

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Speaker 3: to bring to the TABLESSMIA.

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Speaker 12: Yeah, Sarah Bond's history from T Mobile really gives Microsoft

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Speaker 12: expertise that was lacking in the mobile world and in

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Speaker 12: the mobile gaming world in particular. So at T Mobile,

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Speaker 12: she's someone who knows a lot about subscriptions, a lot

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Speaker 12: about how to keep people coming back to a product

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Speaker 12: and also how to trim subscriptions in a way where

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Speaker 12: users don't feel bloated by extra services they don't need.

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Speaker 12: And Microsoft has a sort of Netflix for game service

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Speaker 12: called the game Pass that has thirty four million subscribers,

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Speaker 12: probably more at this point because that data is old,

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Speaker 12: and Sarah Bond is being to reach gamers who want

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Speaker 12: sort of a subscription product using game Pass, which will

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Speaker 12: be available on phones, on PCs, on tablets, on Xbox,

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Speaker 12: on smart TVs, whatever you you know have, Xbox hopes

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Speaker 12: to be there.

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Speaker 4: So see really quick, A big impetus for the Activision

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Speaker 4: deal was mobile gaming and yet to see the story there,

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Speaker 4: what is it.

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Speaker 12: It's a little challenging. So when Microsoft announced the deal

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Speaker 12: with Activision, mobile was the fastest growing segment of the

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Speaker 12: games industry. Now, global consumer spending on mobile games dropped

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Speaker 12: two percent in twenty twenty three. It's still, you know,

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Speaker 12: an over one hundred billion dollar industry. But you know,

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Speaker 12: PC gaming is actually the fastest growing sector of the

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Speaker 12: games industry this year according to one recent study. So

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Speaker 12: it's going to be a little challenging for Sarah to

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Speaker 12: kind of make good on the Activision acquisition. And at

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Speaker 12: the same time, you know, she has high hopes because

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Speaker 12: so many people have mobile phones.

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Speaker 3: Cecilia, it's a great report. We thank you, Cecilia Anastasio,

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Speaker 3: We thank you. Welcome back to Bloomberg Technology. I'm Caroline Height.

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Speaker 4: In New York and I'm me d Ludlow in San Francisco.

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Speaker 3: I need to be discussing when it comes to AIS

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Speaker 3: always an open. AI's latest fundraising is near completion, with

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Speaker 3: perspective investors set to find out today whether.

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Speaker 5: They'll be part of the deal.

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Speaker 3: Sort according to sources, Bloomba's Katie Ruth has more everyone

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Speaker 3: wanting in on this.

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Speaker 13: Well, certainly a lot of venture firms are in strategics.

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Speaker 13: You know, we've reported that Microsoft, which is an existing investor,

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Speaker 13: would be putting in more, but also in Nvidia and Apple,

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Speaker 13: and then you know a flew of other investors are

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Speaker 13: trying to put money in.

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Speaker 5: They'll find out.

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Speaker 13: Today after it was over subscribed by billions of dollars.

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Speaker 4: What I find interesting, Katie, a source told me a

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Speaker 4: couple of weeks ago. You may remember that in Video

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Speaker 4: is only going to put in one hundred million dollars,

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Speaker 4: and there's other reports out there that there's a threshold.

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Speaker 4: But it's not a surprise, is it that the world's

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Speaker 4: most important AI company has investors of all kinds fighting

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Speaker 4: to get over what is a relatively rare round sure.

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Speaker 13: Well, I mean they raised last year at an eighty

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Speaker 13: six billion dollar valuation, so it's a significant premium to that.

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Speaker 5: I think.

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Speaker 13: You know, there's no question there's a lot of demand

439
00:23:24,200 --> 00:23:28,000
Speaker 13: to be in you know, this this transformative AI company.

440
00:23:28,320 --> 00:23:29,399
Speaker 13: By at what price?

441
00:23:29,600 --> 00:23:30,600
Speaker 5: That was the real question.

442
00:23:30,720 --> 00:23:33,239
Speaker 13: But they've certainly had plenty of demand at this one

443
00:23:33,359 --> 00:23:35,680
Speaker 13: hundred and fifty billion pre money valuation.

444
00:23:36,280 --> 00:23:40,280
Speaker 3: Yeah, that was a liquidity event for the employees. That

445
00:23:40,320 --> 00:23:43,479
Speaker 3: eighty six billion phenomenal at the rate that they've managed

446
00:23:43,480 --> 00:23:43,920
Speaker 3: to raise.

447
00:23:44,920 --> 00:23:47,680
Speaker 5: Do how important is the strategic side of this?

448
00:23:48,080 --> 00:23:50,840
Speaker 3: How much does Open AI want them at the cap table?

449
00:23:52,080 --> 00:23:54,760
Speaker 13: Well, certainly it's good to have trillion dollar companies in

450
00:23:54,800 --> 00:23:57,399
Speaker 13: your court. It remains to be seen, you know what

451
00:23:57,760 --> 00:24:00,640
Speaker 13: exactly they have in mind, what kinds of otnerships they

452
00:24:00,640 --> 00:24:03,840
Speaker 13: want to expand upon. But yeah, you know, I think

453
00:24:03,880 --> 00:24:08,040
Speaker 13: that it's a very competitive race to be the leader

454
00:24:08,240 --> 00:24:12,240
Speaker 13: in AI. And if you have companies like Microsoft, Apple

455
00:24:12,240 --> 00:24:15,159
Speaker 13: and Nvidio betting on you, then it really makes you

456
00:24:15,200 --> 00:24:16,159
Speaker 13: even more competitive.

457
00:24:16,680 --> 00:24:18,480
Speaker 5: Katie Ruth, Wait, thank you.

458
00:24:19,280 --> 00:24:19,560
Speaker 4: Now.

459
00:24:20,080 --> 00:24:23,240
Speaker 3: Another side of AI is its regulation. The United Nations

460
00:24:23,240 --> 00:24:27,240
Speaker 3: Expert Group says AI governance discussions been too fragmented The

461
00:24:27,280 --> 00:24:31,200
Speaker 3: group includes government officials, academics, other executives actually from Google,

462
00:24:31,240 --> 00:24:33,720
Speaker 3: Microsoft and and deed open AI and it just came

463
00:24:33,760 --> 00:24:36,639
Speaker 3: out with a report suggesting measures like establishing a fund

464
00:24:36,640 --> 00:24:40,400
Speaker 3: to support poorer countries looking to work on artificial intelligence

465
00:24:40,560 --> 00:24:43,480
Speaker 3: and calling on countries to limit military use of AI

466
00:24:43,840 --> 00:24:47,040
Speaker 3: to prevent human rights violations. Meanwhile, we sat down with

467
00:24:47,080 --> 00:24:49,960
Speaker 3: the presidents of Latvia yesterday and asked him whether.

468
00:24:49,720 --> 00:24:51,639
Speaker 5: AI should be more regulated take to.

469
00:24:51,680 --> 00:24:57,320
Speaker 14: Listen the use of social media, artificial intelli joints for disinformation,

470
00:24:58,520 --> 00:25:03,760
Speaker 14: the fakes, interference and elections. I think we need some framework.

471
00:25:04,920 --> 00:25:08,280
Speaker 14: But at the same time, and this is sometimes a

472
00:25:08,400 --> 00:25:11,280
Speaker 14: challenge for the European Union and about the European Union.

473
00:25:11,960 --> 00:25:14,440
Speaker 14: Let's face it, to be sometimes back in Europe get

474
00:25:14,760 --> 00:25:16,520
Speaker 14: overly regulatory.

475
00:25:18,840 --> 00:25:22,240
Speaker 4: Let's keep the conversation going with NYU Professor Emeritus an

476
00:25:22,280 --> 00:25:26,119
Speaker 4: AI expert Gary Marcus, who's known for his critique of

477
00:25:26,160 --> 00:25:28,879
Speaker 4: the booming AI industry. He's also the author of a

478
00:25:28,920 --> 00:25:32,639
Speaker 4: new book called Taming Silicon Valley, How we can ensure

479
00:25:32,840 --> 00:25:36,679
Speaker 4: that AI works for us and he joins us now. Gary,

480
00:25:37,359 --> 00:25:40,960
Speaker 4: based on the idea of fragmentation of regulation, I always

481
00:25:40,960 --> 00:25:45,439
Speaker 4: think about how AI technology is required to respect the

482
00:25:45,520 --> 00:25:48,440
Speaker 4: laws and rules of various jurisdictions. At the same time,

483
00:25:49,200 --> 00:25:53,879
Speaker 4: technology isn't bound by jurisdictions or borders. What do you

484
00:25:53,920 --> 00:25:57,040
Speaker 4: make of the sort of preamble that we're fragmented.

485
00:25:58,080 --> 00:26:00,760
Speaker 15: I mean, we certainly are fragmented. I think when we

486
00:26:00,800 --> 00:26:03,720
Speaker 15: think about global AI governance, there's actually an advantage to

487
00:26:03,760 --> 00:26:06,719
Speaker 15: the companies and having global AI governance, and that is

488
00:26:06,720 --> 00:26:09,639
Speaker 15: that fragmentation. You think about how expensive it is to

489
00:26:09,680 --> 00:26:14,280
Speaker 15: train these models you saw earlier today Microsoft buying the

490
00:26:14,359 --> 00:26:17,159
Speaker 15: rights to the energy of three Mile Island one hundred percent.

491
00:26:17,720 --> 00:26:20,199
Speaker 15: It's very expensive to train these models. And if you

492
00:26:20,240 --> 00:26:22,919
Speaker 15: have to do that differently for every jurisdiction, because they

493
00:26:22,920 --> 00:26:25,280
Speaker 15: each have their own rules, that would be an insane

494
00:26:25,280 --> 00:26:28,560
Speaker 15: amount of power, especially when we're talking about maybe making

495
00:26:28,600 --> 00:26:31,560
Speaker 15: bigger models one hundred times, a thousand times, ten thousand

496
00:26:31,560 --> 00:26:34,879
Speaker 15: times bigger than existing models. So fragmentation is actually a

497
00:26:34,920 --> 00:26:36,040
Speaker 15: problem for the companies.

498
00:26:36,119 --> 00:26:37,520
Speaker 1: It's also a problem for the world.

499
00:26:37,560 --> 00:26:39,760
Speaker 15: I mean, we really do want to have some uniform

500
00:26:39,800 --> 00:26:43,640
Speaker 15: approach to all of the downsides, things like nonconsensual deep thake,

501
00:26:43,760 --> 00:26:48,439
Speaker 15: foreign misinformation and so forth. There are many downsides, and

502
00:26:48,480 --> 00:26:50,440
Speaker 15: we want a coordinated response to it. So I think

503
00:26:50,440 --> 00:26:53,560
Speaker 15: it's actually in everybody's interest to have some coordination.

504
00:26:53,720 --> 00:26:55,240
Speaker 1: But fragmentation is the DePaul.

505
00:26:55,880 --> 00:26:57,080
Speaker 5: Let's talk about coordination.

506
00:26:57,160 --> 00:27:01,840
Speaker 3: The United Nations has put up this thought process report

507
00:27:01,880 --> 00:27:05,680
Speaker 3: and now they want an independent scientific panel on artificial

508
00:27:05,760 --> 00:27:08,440
Speaker 3: intelligence in the same way they almost have with climate change.

509
00:27:08,520 --> 00:27:09,240
Speaker 5: Is that going to help?

510
00:27:09,320 --> 00:27:10,800
Speaker 3: Is that going to make sure that more people are

511
00:27:10,840 --> 00:27:13,080
Speaker 3: at the table other than basically the G seven and

512
00:27:13,280 --> 00:27:14,639
Speaker 3: some of the biggest companies in the world.

513
00:27:15,000 --> 00:27:16,600
Speaker 15: I mean, God is in the details. But I think

514
00:27:16,600 --> 00:27:18,920
Speaker 15: it's a good start. I think absolutely we need more

515
00:27:18,920 --> 00:27:22,679
Speaker 15: independent scientists weighing in. We also need authority if something

516
00:27:22,760 --> 00:27:25,440
Speaker 15: doesn't work, to do something. So one of the most

517
00:27:25,440 --> 00:27:27,439
Speaker 15: interesting things that happened the last couple of weeks is

518
00:27:27,480 --> 00:27:29,800
Speaker 15: open AI put out a new model and they said

519
00:27:29,920 --> 00:27:31,520
Speaker 15: there's a bioweapons risk here.

520
00:27:31,840 --> 00:27:33,560
Speaker 1: Now they might be right about that.

521
00:27:33,480 --> 00:27:35,360
Speaker 15: They might be wrong about it, but let's suppose they're

522
00:27:35,400 --> 00:27:39,400
Speaker 15: right about it. They decided, despite that risk, they would

523
00:27:39,400 --> 00:27:41,399
Speaker 15: go ahead and release it. And that was really just

524
00:27:41,560 --> 00:27:45,399
Speaker 15: ultimately Sam Altman's decision and nobody else's. Who was Senate

525
00:27:45,440 --> 00:27:48,119
Speaker 15: testimony earlier in the week where former employee and a

526
00:27:48,160 --> 00:27:51,920
Speaker 15: former board member said basically they didn't feel listened to, right,

527
00:27:53,320 --> 00:27:56,240
Speaker 15: and so open Ai sam Almon doesn't have to listen.

528
00:27:56,359 --> 00:27:59,120
Speaker 15: If his employee say the bioweapons risk here is serious,

529
00:27:59,400 --> 00:28:01,840
Speaker 15: maybe not for this model, but the next model, he

530
00:28:01,880 --> 00:28:03,600
Speaker 15: can go ahead anyway and say, but I need to

531
00:28:04,040 --> 00:28:05,840
Speaker 15: make back the money for one hundred and fifty billion

532
00:28:05,880 --> 00:28:08,800
Speaker 15: dollar valuation, which by the way, is not a trivial thing.

533
00:28:09,520 --> 00:28:12,119
Speaker 1: And there's also no outside input.

534
00:28:12,240 --> 00:28:16,040
Speaker 15: So even if this IPC panel that says, you know,

535
00:28:16,080 --> 00:28:18,919
Speaker 15: this is dangerous, there's nothing in the UN that can

536
00:28:19,000 --> 00:28:20,919
Speaker 15: immediately do anything about it. There's nothing in the US

537
00:28:21,000 --> 00:28:23,119
Speaker 15: government that immediately do anything about it. So it's a

538
00:28:23,200 --> 00:28:25,960
Speaker 15: very good, I think thought experiment, like when this stuff

539
00:28:26,000 --> 00:28:28,160
Speaker 15: gets worse, who's making these decisions?

540
00:28:28,240 --> 00:28:29,880
Speaker 3: I mean, but this has happened time and time again,

541
00:28:30,359 --> 00:28:32,480
Speaker 3: and we always go they should self regulate.

542
00:28:32,880 --> 00:28:35,520
Speaker 5: And in a way, Samon one did just that. You

543
00:28:35,680 --> 00:28:37,400
Speaker 5: just told me that you're coughing.

544
00:28:37,040 --> 00:28:39,560
Speaker 3: A bit because you're basically exhausted having written this book

545
00:28:39,600 --> 00:28:42,160
Speaker 3: in two months out of share anger.

546
00:28:42,240 --> 00:28:44,680
Speaker 5: In a way, what's what's the response to the anger?

547
00:28:44,680 --> 00:28:45,560
Speaker 5: What's the answer here?

548
00:28:45,800 --> 00:28:48,600
Speaker 15: Well, I mean the anger is partly I went to

549
00:28:48,640 --> 00:28:51,440
Speaker 15: the Senate. I testified next to Sam Altman, and he

550
00:28:51,560 --> 00:28:55,160
Speaker 15: talked about not just self regulation but real regulation. The

551
00:28:55,200 --> 00:28:58,920
Speaker 15: Senate bipartisan all talked about. This was May of last year.

552
00:29:00,040 --> 00:29:03,120
Speaker 15: Nothing has actually happened. There's been no you know, major

553
00:29:03,120 --> 00:29:05,160
Speaker 15: piece of legislation in the United States to deal with

554
00:29:05,200 --> 00:29:07,920
Speaker 15: any of this. And self regulation is not going to happen.

555
00:29:07,960 --> 00:29:10,320
Speaker 15: I mean, even when they make promises, they often back

556
00:29:10,400 --> 00:29:13,520
Speaker 15: down and they're not they're going to agree to things

557
00:29:13,560 --> 00:29:17,080
Speaker 15: like information sharing. They're not going to agree to, you know,

558
00:29:18,040 --> 00:29:21,120
Speaker 15: deferring the decision about whether to release this new product

559
00:29:21,120 --> 00:29:24,400
Speaker 15: that maybe finally makes them some money to the general public.

560
00:29:24,920 --> 00:29:26,200
Speaker 1: And they're not making money right now.

561
00:29:26,200 --> 00:29:28,240
Speaker 15: I mean open Ai I had a five billion dollar

562
00:29:28,280 --> 00:29:29,280
Speaker 15: operating last year.

563
00:29:29,520 --> 00:29:32,760
Speaker 4: Last year, Let's go back to what you just said

564
00:29:32,840 --> 00:29:35,440
Speaker 4: on open ai. It's not a trivial amount of money,

565
00:29:36,120 --> 00:29:40,480
Speaker 4: but the stakes are also very high. How much does

566
00:29:40,520 --> 00:29:42,640
Speaker 4: that keep you up at night that we have a

567
00:29:42,680 --> 00:29:46,840
Speaker 4: single company with quite confusing governance structure that has the

568
00:29:46,880 --> 00:29:51,640
Speaker 4: world's biggest technology companies and investors fighting over around and

569
00:29:51,720 --> 00:29:54,440
Speaker 4: it's releasing technology at a cadence that you outlined.

570
00:29:55,240 --> 00:29:57,520
Speaker 15: I mean, everybody should have been worried at the drama

571
00:29:57,600 --> 00:30:00,560
Speaker 15: last year. It sort of made for an amazing Netflix

572
00:30:00,600 --> 00:30:02,320
Speaker 15: special or something like that when Sam.

573
00:30:02,240 --> 00:30:05,240
Speaker 1: All we remember buyed and we hired and all of

574
00:30:05,280 --> 00:30:05,800
Speaker 1: this drama.

575
00:30:05,840 --> 00:30:08,920
Speaker 15: But it also says like who is running this company

576
00:30:09,080 --> 00:30:11,480
Speaker 15: and what are the checks and balances? Right, And the

577
00:30:11,640 --> 00:30:13,720
Speaker 15: ultimate answer is Sam is running it. There are no

578
00:30:13,800 --> 00:30:17,440
Speaker 15: checks and balances, And you know, we should be worried

579
00:30:17,520 --> 00:30:20,360
Speaker 15: if a company can't even govern itself internally. A lot

580
00:30:20,360 --> 00:30:24,200
Speaker 15: of people left after that incident. We should be worried.

581
00:30:24,200 --> 00:30:26,440
Speaker 15: It's a lot of power, and we should be worried,

582
00:30:26,480 --> 00:30:28,640
Speaker 15: not just about open air, but the whole industry, like

583
00:30:28,960 --> 00:30:33,080
Speaker 15: responsible AI excuse me as a watchword for the entire

584
00:30:33,160 --> 00:30:35,480
Speaker 15: field for a few years, and now it's almost like

585
00:30:35,520 --> 00:30:37,640
Speaker 15: nobody really cares because there's so much money on the table.

586
00:30:38,720 --> 00:30:41,240
Speaker 4: We had the President of Latvia here yesterday from the

587
00:30:41,280 --> 00:30:45,560
Speaker 4: European Union. You have Hunger next week. Do you have

588
00:30:45,640 --> 00:30:50,400
Speaker 4: any hope that actually these sort of round table, state

589
00:30:50,480 --> 00:30:54,240
Speaker 4: level discussions will yield some kind of framework in which

590
00:30:54,360 --> 00:30:56,400
Speaker 4: the world's kept safe from AI.

591
00:30:57,680 --> 00:30:59,560
Speaker 15: I have a mild bit of hope, but I think

592
00:30:59,560 --> 00:31:01,840
Speaker 15: that we really need the public to be involved and

593
00:31:01,920 --> 00:31:05,040
Speaker 15: say this matters, So you know, politicians always have to

594
00:31:05,080 --> 00:31:07,720
Speaker 15: weigh in competing interests. They get a lot of money

595
00:31:07,760 --> 00:31:10,080
Speaker 15: from the tech companies. They are involved with the tech

596
00:31:10,080 --> 00:31:12,960
Speaker 15: companies in various ways. If the public doesn't speak up,

597
00:31:13,080 --> 00:31:16,200
Speaker 15: I think we will see very light regulation, if any

598
00:31:16,240 --> 00:31:18,680
Speaker 15: at all. The reason I wrote this book is I

599
00:31:18,720 --> 00:31:21,800
Speaker 15: think making these decisions the most important thing that we

600
00:31:21,840 --> 00:31:24,040
Speaker 15: can do for one of the most important things we

601
00:31:24,080 --> 00:31:25,560
Speaker 15: can do in the world in the next few years.

602
00:31:25,560 --> 00:31:27,920
Speaker 15: Think about what happened with social media. We waited too

603
00:31:27,960 --> 00:31:31,760
Speaker 15: long and we entrenched the set of practices that now

604
00:31:32,000 --> 00:31:35,560
Speaker 15: lead to all kinds of polarization, bad for teenage girls

605
00:31:35,600 --> 00:31:37,680
Speaker 15: and so forth, and it's hard to fix these things.

606
00:31:37,840 --> 00:31:39,920
Speaker 15: We have to get AI policy right now.

607
00:31:41,160 --> 00:31:45,000
Speaker 3: I expert Gary Marcus, so good to have you appreciate.

608
00:31:44,600 --> 00:31:45,880
Speaker 5: It, And what are you looking at?

609
00:31:47,600 --> 00:31:49,800
Speaker 4: I think we should reflect on the week in markets, Carol.

610
00:31:50,360 --> 00:31:52,760
Speaker 4: I'm going to the mag seven index. It's a Bloomberg

611
00:31:52,800 --> 00:31:56,000
Speaker 4: index of those magnificent seven names, because we spent a

612
00:31:56,040 --> 00:31:58,320
Speaker 4: lot of the week talking about them in the context

613
00:31:58,360 --> 00:32:00,000
Speaker 4: of the FED that, okay, we now know where we

614
00:32:00,120 --> 00:32:03,240
Speaker 4: stand with rates finally being cut by fifty basis points

615
00:32:03,440 --> 00:32:07,240
Speaker 4: going lower. There's a valuation question around some of those

616
00:32:07,280 --> 00:32:09,680
Speaker 4: that had incredible performance in the first half of this

617
00:32:09,840 --> 00:32:12,360
Speaker 4: year and actually over a longer duration. And then there's

618
00:32:12,400 --> 00:32:14,320
Speaker 4: the idea of, well, what happens if we do or

619
00:32:14,320 --> 00:32:17,480
Speaker 4: don't get a recession? It very closely mirrors. Then there's

620
00:32:17,520 --> 00:32:19,440
Speaker 4: that one hundred that you showed earlier in the show.

621
00:32:19,760 --> 00:32:21,560
Speaker 4: But yeah, no dirt. You know a lot of the

622
00:32:21,600 --> 00:32:24,280
Speaker 4: biggest points drivers on that index are than mag seven anyway,

623
00:32:24,320 --> 00:32:26,480
Speaker 4: and it's just interesting to keep our eye on the

624
00:32:26,520 --> 00:32:29,120
Speaker 4: trajectory of them. Will they continue to be the story

625
00:32:29,120 --> 00:32:31,280
Speaker 4: in this market? Okay? Coming up in the program, we're

626
00:32:31,280 --> 00:32:34,360
Speaker 4: going to hear from Salesforce CEO Mark Benioff as they

627
00:32:34,440 --> 00:32:37,440
Speaker 4: launched some new AI tools over at Dreamforce. Their conversations.

628
00:32:37,480 --> 00:32:40,880
Speaker 4: Coming up next Sploomberg Technology.

629
00:32:50,320 --> 00:32:53,920
Speaker 3: Salesforce is launching a slow of new gen AI tools

630
00:32:53,960 --> 00:32:57,360
Speaker 3: known as Agents. CEO Mark Benioff spoke with bloom Megseminey

631
00:32:57,440 --> 00:32:59,960
Speaker 3: Chang at their annual Dreamforce event in San Francis.

632
00:33:00,160 --> 00:33:00,760
Speaker 5: Go to take a listen.

633
00:33:02,640 --> 00:33:05,760
Speaker 16: These customers have been convinced something that's not true, that

634
00:33:05,800 --> 00:33:07,640
Speaker 16: they have to buy an LLM, they have to go

635
00:33:07,720 --> 00:33:10,640
Speaker 16: to a hyperscaler, they have to get a database, they

636
00:33:10,640 --> 00:33:13,720
Speaker 16: have to buy a security technology, they have to choose

637
00:33:13,720 --> 00:33:16,560
Speaker 16: a chip, they have to hook it all together themselves.

638
00:33:16,600 --> 00:33:21,120
Speaker 16: They have to deiy their AI. It's not true. You

639
00:33:21,200 --> 00:33:24,479
Speaker 16: do not have to diy your AI. And when we

640
00:33:24,520 --> 00:33:27,680
Speaker 16: started the show, they didn't really believe it. So that's

641
00:33:27,680 --> 00:33:30,680
Speaker 16: why we created a whole factory across the street as

642
00:33:30,680 --> 00:33:33,800
Speaker 16: you saw in Moscowe West, where we have put more

643
00:33:33,800 --> 00:33:37,320
Speaker 16: than ten thousand customers through already, to show them that

644
00:33:37,720 --> 00:33:40,920
Speaker 16: on the Salesforce platform, which they've already been committed to

645
00:33:41,600 --> 00:33:44,960
Speaker 16: for more than twenty years, we've had great success in

646
00:33:45,040 --> 00:33:48,959
Speaker 16: sales and service and marketing and communications and commerce and

647
00:33:49,000 --> 00:33:54,240
Speaker 16: analytics and Slack and all of these technologies that now

648
00:33:54,280 --> 00:33:58,720
Speaker 16: they're also building AI. And this is a shock to

649
00:33:58,760 --> 00:34:02,080
Speaker 16: them and sing for us because they're showing them how

650
00:34:02,280 --> 00:34:06,200
Speaker 16: once again we're future proofing their company with the Salesforce platform.

651
00:34:06,240 --> 00:34:11,360
Speaker 9: So you've basically di wied it for them, software company.

652
00:34:11,440 --> 00:34:12,840
Speaker 5: What models you've built it on? Is it?

653
00:34:13,000 --> 00:34:13,080
Speaker 4: Is?

654
00:34:13,080 --> 00:34:13,200
Speaker 11: It?

655
00:34:13,239 --> 00:34:13,480
Speaker 5: Is it?

656
00:34:13,520 --> 00:34:15,439
Speaker 16: We have our own, We have many and they don't

657
00:34:15,440 --> 00:34:18,600
Speaker 16: need to know. Okay, and they don't why what chip

658
00:34:19,200 --> 00:34:22,600
Speaker 16: am I using? You know what hyperscaler? They don't care.

659
00:34:23,320 --> 00:34:26,040
Speaker 16: They don't care what I'm using you know, it's like

660
00:34:26,560 --> 00:34:29,680
Speaker 16: what type of flowers in the cake? What kind of

661
00:34:29,719 --> 00:34:32,640
Speaker 16: sugar did I buy at the store? Why does it matter?

662
00:34:32,760 --> 00:34:35,160
Speaker 16: Do you like the cake? Is this the final product

663
00:34:35,160 --> 00:34:35,640
Speaker 16: that you like?

664
00:34:35,840 --> 00:34:36,160
Speaker 7: All right?

665
00:34:36,239 --> 00:34:38,239
Speaker 16: And I think that for our customers, they don't want

666
00:34:38,239 --> 00:34:41,040
Speaker 16: to know all the pieces. They want to know does

667
00:34:41,080 --> 00:34:45,680
Speaker 16: this work and can they make a greater success for

668
00:34:45,719 --> 00:34:46,520
Speaker 16: their own companies.

669
00:34:49,000 --> 00:34:52,239
Speaker 4: That was Salesforce CEO Mark Benioff. Staying with Salesforce, it's

670
00:34:52,320 --> 00:34:56,319
Speaker 4: investment on Salesforce Ventures just announce a five hundred million

671
00:34:56,360 --> 00:34:59,840
Speaker 4: dollar investment fund for AI that is expanding. It is

672
00:35:00,000 --> 00:35:03,200
Speaker 4: discussed as John SUMMERGI, Salesforce Ventures President, and I just

673
00:35:03,280 --> 00:35:05,600
Speaker 4: want to do the mechanics of this really quickly. You

674
00:35:05,719 --> 00:35:09,040
Speaker 4: basically invest now with almost like a billion dollars capital

675
00:35:09,120 --> 00:35:12,680
Speaker 4: play with off balance sheet from Salesforce, Right, and you're

676
00:35:12,719 --> 00:35:15,480
Speaker 4: looking for things that add to what Mark Benioff was

677
00:35:15,560 --> 00:35:18,759
Speaker 4: just talking about. Right, You're looking for the next frontier

678
00:35:19,040 --> 00:35:21,520
Speaker 4: of an actual GENAI tool exactly.

679
00:35:21,680 --> 00:35:24,319
Speaker 17: So we feel that AI is one of the most

680
00:35:24,360 --> 00:35:28,680
Speaker 17: significant innovations in our lifetime, and we're looking for entrepreneurs

681
00:35:28,719 --> 00:35:32,680
Speaker 17: who are helping to solve business challenges in unprecedented ways.

682
00:35:32,719 --> 00:35:36,200
Speaker 17: That AI allows them to do so. And last year

683
00:35:36,239 --> 00:35:39,240
Speaker 17: we announced a five hundred million dollar fund. We invested

684
00:35:39,280 --> 00:35:42,719
Speaker 17: in twenty four companies with that money, and we decided

685
00:35:42,760 --> 00:35:45,640
Speaker 17: to expand it to up to a billion dollars now

686
00:35:45,960 --> 00:35:48,640
Speaker 17: to invest in this very exciting AI innovation.

687
00:35:49,560 --> 00:35:53,160
Speaker 4: We just listened to Mark Benioff talk about why salesforces

688
00:35:53,360 --> 00:35:56,839
Speaker 4: generative air offering is better than any company of any

689
00:35:56,880 --> 00:36:01,320
Speaker 4: size engaging with the GPU provider right through to application layer,

690
00:36:02,040 --> 00:36:04,399
Speaker 4: and it sounds like they're pretty happy with what they've

691
00:36:04,400 --> 00:36:06,280
Speaker 4: got to offer. So how can you go and find

692
00:36:06,320 --> 00:36:08,719
Speaker 4: something new that Salesforce doesn't already have.

693
00:36:09,600 --> 00:36:14,879
Speaker 17: Well, we're seeing interesting companies develop new business applications that

694
00:36:15,040 --> 00:36:17,920
Speaker 17: are in new areas. Like for example, we invest in

695
00:36:17,960 --> 00:36:20,960
Speaker 17: a company called Runway, and if you're familiar with the

696
00:36:21,000 --> 00:36:25,439
Speaker 17: Oscar Awards winning film Everything Everywhere, All at once, they

697
00:36:25,560 --> 00:36:30,359
Speaker 17: used Runway technology to take their editing staff from you know,

698
00:36:30,480 --> 00:36:34,239
Speaker 17: normally hundreds of people editing this very complex movie down

699
00:36:34,280 --> 00:36:37,319
Speaker 17: to a handful of people using their technology. And this

700
00:36:37,440 --> 00:36:41,840
Speaker 17: is real productivity value that's being delivered. We're seeing interesting

701
00:36:41,920 --> 00:36:47,480
Speaker 17: developments in new models, in new vertical applications, in AI security,

702
00:36:48,000 --> 00:36:52,840
Speaker 17: in areas that are we do not cover today, but

703
00:36:52,920 --> 00:36:55,799
Speaker 17: we want to partner with these companies and deliver more

704
00:36:55,920 --> 00:36:57,280
Speaker 17: solutions to our customers.

705
00:36:57,640 --> 00:36:59,240
Speaker 5: You're an Anthropic.

706
00:37:00,360 --> 00:37:03,360
Speaker 3: Listed as one of the wannabes in open Ai.

707
00:37:04,040 --> 00:37:04,360
Speaker 5: Why not?

708
00:37:06,000 --> 00:37:09,480
Speaker 17: So we partner with both open ai and Anthropic and

709
00:37:09,520 --> 00:37:12,319
Speaker 17: the number of other LLM providers. We also have our

710
00:37:12,360 --> 00:37:16,640
Speaker 17: own lms as well, our large language models, and we

711
00:37:17,400 --> 00:37:21,839
Speaker 17: are very excited about what we've invested in with Anthropic.

712
00:37:21,960 --> 00:37:24,720
Speaker 17: We are in hugging Face, which is an open source

713
00:37:24,800 --> 00:37:29,640
Speaker 17: provider of models, and we're also in Mistral, which is

714
00:37:29,680 --> 00:37:33,879
Speaker 17: another another provider, and so we feel pretty good about

715
00:37:33,880 --> 00:37:37,400
Speaker 17: the investments that we've made in the foundational model level.

716
00:37:37,880 --> 00:37:40,560
Speaker 17: And now we're looking to invest in different types of

717
00:37:40,600 --> 00:37:43,600
Speaker 17: companies with this new five hundred million dollar fund.

718
00:37:44,440 --> 00:37:50,000
Speaker 3: What's so interesting is full of Salesforce. Last five acquisitions

719
00:37:50,480 --> 00:37:54,600
Speaker 3: have been funded at some point by Salesforce ventures. How

720
00:37:54,680 --> 00:37:57,840
Speaker 3: much do you end up realizing you should buy these companies,

721
00:37:57,920 --> 00:37:59,680
Speaker 3: not just strategically invest in them.

722
00:38:00,440 --> 00:38:03,799
Speaker 17: Well, one of the benefits of investing in a company

723
00:38:03,840 --> 00:38:06,879
Speaker 17: first is that you do get a chance to work

724
00:38:06,920 --> 00:38:11,040
Speaker 17: with them and see how the technology can help deliver

725
00:38:11,360 --> 00:38:15,560
Speaker 17: success to your customers. And we do partner very well

726
00:38:15,560 --> 00:38:17,799
Speaker 17: with a lot of the companies that we invest in.

727
00:38:18,320 --> 00:38:21,080
Speaker 17: But keep in mind we've made investments in over six

728
00:38:21,160 --> 00:38:24,719
Speaker 17: hundred and thirty companies over the past fifteen years. We've

729
00:38:24,760 --> 00:38:27,600
Speaker 17: only acquired twenty of the companies that we've invested in,

730
00:38:28,160 --> 00:38:33,279
Speaker 17: so it's a very small minority of the businesses that

731
00:38:33,320 --> 00:38:36,040
Speaker 17: we've invested in. But we're very excited about some of

732
00:38:36,080 --> 00:38:39,040
Speaker 17: the recent acquisitions we've made out of the fund. Companies

733
00:38:39,080 --> 00:38:44,280
Speaker 17: like SPIF, which do an incentive compensation management airkit, which

734
00:38:44,960 --> 00:38:48,640
Speaker 17: is a big foundational element of our Agent Force technology.

735
00:38:49,080 --> 00:38:50,919
Speaker 1: We acquired them last year.

736
00:38:51,080 --> 00:38:54,799
Speaker 17: Adam Evans, the founder of Erkitt, is a two time

737
00:38:55,360 --> 00:38:58,600
Speaker 17: boomerang back to Salesforce. We're really excited to have him.

738
00:38:58,960 --> 00:39:01,960
Speaker 4: John tens At thousands of people have descended on our

739
00:39:02,000 --> 00:39:04,120
Speaker 4: city for Dreamforce.

740
00:39:03,640 --> 00:39:04,240
Speaker 17: So exciting.

741
00:39:04,280 --> 00:39:06,120
Speaker 4: I've always thought about it as a customer event. I

742
00:39:06,120 --> 00:39:09,279
Speaker 4: know loads of people that either work at Salesforce, MuleSoft,

743
00:39:09,520 --> 00:39:13,400
Speaker 4: or they use CRM right historically, for you, what's the

744
00:39:13,440 --> 00:39:17,240
Speaker 4: week been like in terms of unearthing interesting founders, interesting

745
00:39:17,320 --> 00:39:18,960
Speaker 4: startups that you might write a check for.

746
00:39:19,719 --> 00:39:21,760
Speaker 17: I think this week is one of the most exciting

747
00:39:21,800 --> 00:39:25,120
Speaker 17: weeks I've ever been in San Francisco. The energy in

748
00:39:25,160 --> 00:39:30,000
Speaker 17: the city is really palpable, and you're seeing CIOs and

749
00:39:30,120 --> 00:39:35,480
Speaker 17: C suite executives meeting with entrepreneurs at Dreamforce together all

750
00:39:35,520 --> 00:39:38,680
Speaker 17: at Moscowy Center. We had over forty five thousand people

751
00:39:38,719 --> 00:39:43,239
Speaker 17: in person, and from my perspective, I got to.

752
00:39:43,160 --> 00:39:46,040
Speaker 4: Say the traffic was dreadful last night, Thank you very much.

753
00:39:46,640 --> 00:39:49,520
Speaker 17: From my perspective, I got to meet with some fascinating

754
00:39:49,600 --> 00:39:53,839
Speaker 17: founders who are really redefining the way AI is going

755
00:39:53,840 --> 00:39:57,000
Speaker 17: to work in the future and solving critical business challenges.

756
00:39:57,040 --> 00:39:58,960
Speaker 17: So I'm very excited about what I saw this week.

757
00:40:00,120 --> 00:40:01,319
Speaker 5: It's great to have some time with you.

758
00:40:01,719 --> 00:40:11,359
Speaker 3: Thank you, John SUMMERJAI as sales scance ventures.

759
00:40:12,480 --> 00:40:15,759
Speaker 2: Demand has been really strong in the US. We've had

760
00:40:16,000 --> 00:40:19,680
Speaker 2: incredible large infrastructure projects going on, the overhaul of the

761
00:40:19,719 --> 00:40:23,920
Speaker 2: grid that's going on, AI demands on electrification, telecom and

762
00:40:24,360 --> 00:40:28,480
Speaker 2: everything is being delivered, both services and goods, and this

763
00:40:28,520 --> 00:40:30,719
Speaker 2: has created a whole new sets of business for US.

764
00:40:30,760 --> 00:40:33,760
Speaker 2: So we see incredible demand across all our vehicle lines,

765
00:40:33,760 --> 00:40:36,080
Speaker 2: both here and any of Europe.

766
00:40:36,760 --> 00:40:38,520
Speaker 5: Ford pro CEO Tim Canis.

767
00:40:38,560 --> 00:40:42,520
Speaker 3: They're talking about the accelerating commercial adoption of evs and

768
00:40:42,560 --> 00:40:46,279
Speaker 3: he's there at the outset of a new and revamped

769
00:40:46,440 --> 00:40:49,239
Speaker 3: Wall Street Week with David Weston now joins us because

770
00:40:49,239 --> 00:40:50,759
Speaker 3: the host of that show that we're about to be

771
00:40:50,800 --> 00:40:53,640
Speaker 3: able to watch in full later today, David and.

772
00:40:53,520 --> 00:40:55,880
Speaker 18: Ted Cannis is a friend of yours of this show. Actually,

773
00:40:55,920 --> 00:40:56,400
Speaker 18: I've seen him.

774
00:40:57,320 --> 00:40:57,880
Speaker 1: He's the character.

775
00:40:57,920 --> 00:41:01,680
Speaker 18: Yeah, but the demand seems well, and he's always been

776
00:41:01,880 --> 00:41:04,600
Speaker 18: somewhat raw raw. I think you'd agree. But the thing

777
00:41:04,600 --> 00:41:06,319
Speaker 18: that I didn't really understand until i'd gone out there

778
00:41:06,360 --> 00:41:08,680
Speaker 18: and talked to him and Jim Farley, the CEO of Ford,

779
00:41:08,840 --> 00:41:11,799
Speaker 18: is there are two stories about EV's i'd heard meaning

780
00:41:11,880 --> 00:41:14,239
Speaker 18: one story, and one of is the consumer side, which

781
00:41:14,280 --> 00:41:16,960
Speaker 18: is slowing down all around the world, frankly, and then

782
00:41:17,080 --> 00:41:20,120
Speaker 18: is the commercial side, these delivery vans and emergency vehicles,

783
00:41:20,200 --> 00:41:22,680
Speaker 18: And that one is just as robust as ever. And

784
00:41:22,719 --> 00:41:25,120
Speaker 18: as you know, Ford has a significant advantage in that

785
00:41:25,320 --> 00:41:28,320
Speaker 18: it's something like forty percent market share in that market.

786
00:41:28,680 --> 00:41:30,680
Speaker 4: I think the thing you learn about the EV industry

787
00:41:30,719 --> 00:41:32,839
Speaker 4: is it's complicated. David. You make that point so well,

788
00:41:32,920 --> 00:41:35,360
Speaker 4: So how do we take that to Wall Street Week?

789
00:41:35,600 --> 00:41:39,240
Speaker 4: There's always a money story behind everything, and within an industry,

790
00:41:39,239 --> 00:41:41,799
Speaker 4: and even on Wall Street. There's a culture story behind it.

791
00:41:42,160 --> 00:41:43,359
Speaker 4: How are you going to tell us that?

792
00:41:43,480 --> 00:41:45,840
Speaker 18: The question is really and that is the larger story.

793
00:41:45,880 --> 00:41:48,120
Speaker 18: You're exactly right ed. The question is what does this

794
00:41:48,200 --> 00:41:50,880
Speaker 18: mean for an auto industry Detroit, O industry that is

795
00:41:50,880 --> 00:41:54,000
Speaker 18: trying to rebound from some very dark days as you know,

796
00:41:54,160 --> 00:41:56,600
Speaker 18: back in the eighties and the nineties and actually going

797
00:41:56,600 --> 00:41:59,440
Speaker 18: to the brink of extinction during the Great Financial Crisis.

798
00:41:59,520 --> 00:42:01,920
Speaker 18: What is that need they think that the ev impetus

799
00:42:01,960 --> 00:42:04,080
Speaker 18: will really drive them. They're having a little trouble on

800
00:42:04,120 --> 00:42:07,120
Speaker 18: the consumer side, but Ford particularly is relying heavily on

801
00:42:07,160 --> 00:42:09,840
Speaker 18: the commercial side. So it really raises the question for

802
00:42:09,920 --> 00:42:12,560
Speaker 18: investors is this a good investment or not? Is this

803
00:42:12,560 --> 00:42:14,720
Speaker 18: someplace you want to put your money or not into

804
00:42:14,760 --> 00:42:17,360
Speaker 18: this resurgent auto industry. And one of the things we

805
00:42:17,400 --> 00:42:20,920
Speaker 18: talk about with Jim Farley particularly is China and China

806
00:42:20,960 --> 00:42:23,960
Speaker 18: coming on the scene and the very high quality, very

807
00:42:24,000 --> 00:42:27,280
Speaker 18: low cost something he says a little bit like Toyota

808
00:42:27,280 --> 00:42:29,080
Speaker 18: because he used to work, as you know, Jim Farley

809
00:42:29,200 --> 00:42:31,680
Speaker 18: at Toyota. Even though he comes from Detroit, he were

810
00:42:31,719 --> 00:42:33,480
Speaker 18: for Toatorya and he saw those battle days.

811
00:42:33,840 --> 00:42:36,880
Speaker 3: It's going to be fascinating China, important for higher education.

812
00:42:36,960 --> 00:42:39,200
Speaker 3: You delve into that sea as well as the business

813
00:42:39,239 --> 00:42:41,280
Speaker 3: of restaurants. You don't want to miss it all Street

814
00:42:41,280 --> 00:42:45,040
Speaker 3: week later at David Weston six pm New York Time.

815
00:42:45,560 --> 00:42:48,960
Speaker 3: That does it, though, for this edition of Bloomberg Technology

816
00:42:49,320 --> 00:42:50,480
Speaker 3: Ed What.

817
00:42:50,560 --> 00:42:53,319
Speaker 4: A week Cambionship Technology Recap on the podcast you know

818
00:42:53,400 --> 00:42:55,359
Speaker 4: exactly where to find it from New York and ess

819
00:42:55,719 --> 00:42:56,560
Speaker 4: this is Bloomberg