WEBVTT - Meta Introduces Palm-Sized Device to Use Muse AI

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<v Speaker 1>All right, this is how it works here.

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<v Speaker 5>Mandeep Singh walks in the door, and I just say,

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<v Speaker 5>I got a whole list of things to talk about, Mandeep,

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<v Speaker 5>but I'm just like, what do you want to talk

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<v Speaker 5>about it? Mandeep Singh, global tech reporter, I'm sorry, research

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<v Speaker 5>head for Bloomberg Intelligence joins us here in studio here.

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<v Speaker 5>Everybody's talking about this Muse thing. Now there's a Muse

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<v Speaker 5>charm from Meta. I just downloaded the Muse app on

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<v Speaker 5>my phone, so I feel like I'm technically on the

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<v Speaker 5>cutting edge here. What's this charm thing? I know that's

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<v Speaker 5>not usually your belly wick. That's the kids.

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<v Speaker 6>Well, they are launching a new device now.

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<v Speaker 1>A device.

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<v Speaker 7>A device where you can interface with their Muse agent

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<v Speaker 7>using this device. And everything still runs on the cloud.

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<v Speaker 7>Nothing is on the device. But it's an easier way

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<v Speaker 7>for you to interact using voice. And instead of opening

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<v Speaker 7>your app on the smartphone... This device is listening to

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<v Speaker 7>you all the time, and you're pretty much talking to

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<v Speaker 7>it as if it's your agent.

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<v Speaker 5>Do I put it on my keychain? Do I put

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<v Speaker 5>it on my Bloomberg lanyard? What do I do with

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<v Speaker 5>this thing?

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<v Speaker 6>Either is fine. He's going to lose this thing in

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<v Speaker 6>about five minutes, by the way.

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<v Speaker 5>Yeah, I'm still looking for an earbud down here in

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<v Speaker 5>this radio studio.

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<v Speaker 7>But the good thing is the device can figure out

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<v Speaker 7>if it's lost and, you know, send you some sort of.

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<v Speaker 6>A message that, hey, Paul, you may have left the device.

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<v Speaker 5>He's got like a million engineering degrees and he's talking

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<v Speaker 5>about like losing a device.

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<v Speaker 1>I mean, is this the 2026 version of the Tamagotchi?

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<v Speaker 7>Well, that's what I think some people are comparing it to.

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<v Speaker 7>But at the end of the day, they're saying this

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<v Speaker 7>is a persistent agent that is running 24-7. Whether you

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<v Speaker 7>initiate the agent through the app on your smartphone or

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<v Speaker 7>through this device, it's going to work behind the scenes 24-7.

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<v Speaker 7>You don't have to constantly prompt it or, you know,

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<v Speaker 7>engage with it. Once you give it a command, organize

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<v Speaker 7>my calendar.

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<v Speaker 6>It's persistent.

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<v Speaker 7>It's going to do that 24-7 without you having to

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<v Speaker 7>keep prompting it.

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<v Speaker 6>And that's the promise. That's why people are so excited here.

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<v Speaker 3>Is Mark Zuckerberg aware that people are very upset about

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<v Speaker 3>AI and how it poses an existential crisis? They don't

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<v Speaker 3>want data centers near them. This is the time to

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<v Speaker 3>introduce something like this? I'm going to put this thing

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<v Speaker 3>in my pocket.

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<v Speaker 7>Well, what he's trying to, I think, sell is the functionality,

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<v Speaker 7>the fact that it can really make you super productive

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<v Speaker 7>by doing your mundane tasks like organizing your calendar or,

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<v Speaker 7>you know, cleaning up your emails, basic tasks, ordering stuff

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<v Speaker 7>from the Internet.

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<v Speaker 6>Obviously, it's not Amazon anymore.

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<v Speaker 7>But they added a few more partners, Walmart, Best Buy.

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<v Speaker 7>So it sounds like he wants to develop an ecosystem

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<v Speaker 7>around it, but it's still early days. And I expect

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<v Speaker 7>Google and Apple to definitely launch something along these lines because.

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<v Speaker 6>It's their turf.

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<v Speaker 1>It's the new streaming wars.

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<v Speaker 6>Yeah.

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<v Speaker 5>This stock market, like, it stocks up 3.2% today. It's

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<v Speaker 5>at a 52-week high. It's not at an all-time high,

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<v Speaker 5>but darn, within a couple of bucks of an all-time high.

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<v Speaker 5>So to the extent they ever lost their mojo, which...

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<v Speaker 5>I don't think they really ever did. They kind of

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<v Speaker 5>got it back a little bit here.

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<v Speaker 7>I mean, I'm thinking what the 2027 CapEx number is

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<v Speaker 7>going to be given what has transpired. Come 3Q earnings

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<v Speaker 7>call for Meta, I expect them to raise their capex

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<v Speaker 7>at least 60, 70 percent.

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<v Speaker 6>If not higher.

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<v Speaker 7>And they are right up there in terms of justifying

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<v Speaker 7>that capex, even though I'm not very clear on the

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<v Speaker 7>monetization model here, because everything that they are giving to

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<v Speaker 7>the consumer is free. And Mark Zuckerberg said last night

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<v Speaker 7>they will take a cut of all the transactions they

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<v Speaker 7>will facilitate. So one to two percent cut or even higher.

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<v Speaker 1>And they take your data. I mean, even more than

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<v Speaker 1>they already have.

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<v Speaker 7>Yes, well, that's part of the ads that they show

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<v Speaker 7>on the 3.5 billion users they have across their family

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<v Speaker 7>of apps. So all that is a given, but they

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<v Speaker 7>seem to be very excited about using all the data

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<v Speaker 7>center capacity internally. Remember, Google rents out 50% of their

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<v Speaker 7>capacity on cloud. 50% they use on their apps, 50%

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<v Speaker 7>rented on cloud. Amazon rents everything on cloud. They use

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<v Speaker 7>a little portion of it internally. Microsoft rents everything on cloud.

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<v Speaker 7>Meta was the only one who was betting big on

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<v Speaker 7>using everything internally. They found that use case where they

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<v Speaker 7>can deploy a lot of that capacity internally.

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<v Speaker 6>I just feel, is it.

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<v Speaker 7>Going to be worth $ 150 billion plus in CapEx and

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<v Speaker 7>their ROI on that? That is not clear because they

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<v Speaker 7>haven't given us a monetization model. But with Meta, we

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<v Speaker 7>know if something is sticky, they will find a way

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<v Speaker 7>to monetize it eventually.

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<v Speaker 5>I know everybody's getting in their Christmas stocking this Christmas.

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<v Speaker 5>A little muse charm there. How much is that going

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<v Speaker 5>to set me back?

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<v Speaker 7>Well, they subsidize all their devices. They launch a lot of,

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<v Speaker 7>you know, audio AR glasses, VR glasses. Everything is way

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<v Speaker 7>below the Apple price point for Vision Pro. So Meta

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<v Speaker 7>believes in subsidizing the hardware because they really want to

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<v Speaker 7>own that device. They don't want to be reliant on

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<v Speaker 7>Apple or Google.

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<v Speaker 3>A hard time believing that parents are going to get

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<v Speaker 3>this for their kids, especially after all the Instagram stuff.

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<v Speaker 3>Do you really want to embed your child's life even

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<v Speaker 3>further into the meta suite of products?

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<v Speaker 1>Everyone's trying to break that link.

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<v Speaker 5>I know I'm getting John Tucker for Christmas this year.

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<v Speaker 6>That's a good gift. I'll be bringing it back.

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<v Speaker 5>Just for what it's worth here, CapEx for meta in 2023,

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<v Speaker 5>$ 27 billion. This year, $ 140 billion.

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<v Speaker 6>Next year forecast, $ 200 billion.

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<v Speaker 5>So that is a different company, a different stock than

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<v Speaker 5>people have historically owned.

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<v Speaker 1>Stay with us. More from Bloomberg Intelligence coming up after this.

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<v Speaker 4>You're listening to the Bloomberg Intelligence podcast. Catch us live

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<v Speaker 4>weekdays at 10 a.m. Eastern on Apple CarPlay and Android

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<v Speaker 4>Auto with the Bloomberg Business app. Listen on demand wherever

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<v Speaker 4>you get your podcasts or watch us live on YouTube.

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<v Speaker 6>We've been talking about private equity.

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<v Speaker 5>Actually, we've been talking about higher interest rates and the

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<v Speaker 5>impact it's having on stocks, bonds, commodities.

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<v Speaker 1>The economy. The economy. How about deal flow?

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<v Speaker 5>And for our private equity friends that have just been

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<v Speaker 5>rolling in it for 20 years.

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<v Speaker 3>Well, they really made their bones when interest rates were

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<v Speaker 3>super low. What happens now that interest rates are higher

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<v Speaker 3>and will likely stay higher? And it turns out a

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<v Speaker 3>lot of people who had been working in the private

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<v Speaker 3>equity industry are now looking at the investment banking industry

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<v Speaker 3>and saying, oh, maybe I'll go back there.

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<v Speaker 5>All right. Allison McNeely joins us here, Bloomberg private equity reporter.

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<v Speaker 5>The story, private equity's path to riches is getting harder

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<v Speaker 5>to follow. Allison, thanks so much for joining us here.

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<v Speaker 5>Talk to us about your story. What's going on in

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<v Speaker 5>the world of private equity? What are those folks doing

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<v Speaker 5>these days?

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<v Speaker 8>I think what we're seeing in the industry is some

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<v Speaker 8>folks reevaluating whether private equity is really the.

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<v Speaker 9>Best bet for them long term, you know.

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<v Speaker 8>As Scott was saying, it was kind of like where

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<v Speaker 8>everyone wanted to go for a long time.

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<v Speaker 9>There was a lot of money that was made.

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<v Speaker 8>But in the past few years, as dealmaking has become

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<v Speaker 8>harder with interest rates higher, there are less exits. And

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<v Speaker 8>when there's less exits, there's less carried interest or sort

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<v Speaker 8>of the slice of profits to.

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<v Speaker 9>Dealmakers being paid out.

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<v Speaker 8>And some folks are looking at entrepreneurship as an option.

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<v Speaker 9>Some people are actually going.

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<v Speaker 8>Back to banking, which is really interesting because I think

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<v Speaker 8>for a while there, Banking was sort of perceived in

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<v Speaker 8>the industry as this two-year slog you had to endure

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<v Speaker 8>before you could go to the buy side and make

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<v Speaker 8>real money.

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<v Speaker 3>And now people are looking at the investment banking slog as, oh,

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<v Speaker 3>you know, it's stable. And I mean, there's a lot

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<v Speaker 3>of deals taking place, you know, just with M &amp; A,

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<v Speaker 3>for instance. It's just that the M &amp; A does

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<v Speaker 3>not include private equity firms exiting their investments.

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<v Speaker 8>Yeah, I mean, you could go make money on IPOs, essentially,

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<v Speaker 8>for a lot of the tech companies and the AI

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<v Speaker 8>boom and that sort of thing. Johnson &amp; Associates, the

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<v Speaker 8>consulting firm, put out a report that said that Investment

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<v Speaker 8>banking compensation is expected to rise 10 to 15 percent

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<v Speaker 8>this year, flat for middle market private equity and I

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<v Speaker 8>believe two and a half to seven and a half percent.

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<v Speaker 8>Don't quote me exactly on that, but that ballpark for

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<v Speaker 8>large buyout. So, you know, you can kind of see

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<v Speaker 8>it coming through in the data right there.

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<v Speaker 5>What are the firms, the private equity firms saying in general?

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<v Speaker 5>Are they OK with the attrition because maybe the deal

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<v Speaker 5>flow is not there or are they trying to retain

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<v Speaker 5>these people?

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<v Speaker 6>What are they saying?

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<v Speaker 8>I think, generally speaking, private equity firms, when you ask

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<v Speaker 8>them about this topic, they say, yes, it is a

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<v Speaker 8>problem in the industry, but it is not a problem

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<v Speaker 8>for us.

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<v Speaker 1>It's the other guys.

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<v Speaker 6>Yeah, it's the other guys.

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<v Speaker 9>Don't worry about us.

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<v Speaker 8>Scott Nuttall, the co-CEO of KKR, refers to a K-shaped

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<v Speaker 8>industry where some folks are starting to see a recovery

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<v Speaker 8>in exits.

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<v Speaker 9>His firm.

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<v Speaker 8>in the most recent quarter, reported the best quarter ever

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<v Speaker 8>for exits. So they're definitely seeing a rebound. Then other folks,

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<v Speaker 8>you know, are kind of quietly saying, yeah, you know,

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<v Speaker 8>it might take a little longer than we expected, but,

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<v Speaker 8>you know, don't worry.

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<v Speaker 1>Don't worry.

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<v Speaker 9>It's going to happen. But they've been saying, don't worry.

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<v Speaker 9>It's going to happen for several years now.

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<v Speaker 7>Okay.

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<v Speaker 3>So you mentioned carried interest, the slice of profits that

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<v Speaker 3>folks in private equity have get paid when an investment

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<v Speaker 3>goes really well. If you leave the private equity industry,

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<v Speaker 3>even though you brought some of these deals to the firm,

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<v Speaker 3>then that's it. You don't get any of that carried interest, right?

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<v Speaker 3>Like you've given up your rights to any of that.

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<v Speaker 8>It depends on whether or not it's vested, and it

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<v Speaker 8>depends on sort of the different firms. So yes, sometimes

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<v Speaker 8>you will abandon carry, but- You might make the calculation

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<v Speaker 8>that that's fine because you don't actually believe it's going

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<v Speaker 8>to come through and it's not going to be worth what.

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<v Speaker 9>The model says it will pay.

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<v Speaker 8>But also you could leave the industry with that carry

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<v Speaker 8>already vested. And so that will actually come to you

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<v Speaker 8>when the time comes. It just depends on where the

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<v Speaker 8>fund's at.

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<v Speaker 6>That's exactly right.

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<v Speaker 5>When I left Wall Street, I was approached by a

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<v Speaker 5>couple of private equity shops that I knew pretty well.

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<v Speaker 1>And that was all good.

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<v Speaker 6>Great stuff, great people.

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<v Speaker 5>But the problem is you can't get the carried interest

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<v Speaker 5>until you participate in a fundraising. They're not going to

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<v Speaker 5>put you in an existing fund. So if you're like, OK,

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<v Speaker 5>so I'm going to get a salary, maybe a little

0:11:04.620 --> 0:11:06.220
<v Speaker 5>bonus for working, but I'm not going to get the

0:11:06.340 --> 0:11:11.420
<v Speaker 5>outsized compensation from a fund that performs well until I

0:11:11.440 --> 0:11:14.440
<v Speaker 5>participate in one fundraising. And that was could be years

0:11:14.480 --> 0:11:17.460
<v Speaker 5>away or could be six months. You don't really have

0:11:17.480 --> 0:11:17.640
<v Speaker 5>a good.

0:11:17.820 --> 0:11:18.140
<v Speaker 4>Right.

0:11:18.340 --> 0:11:20.900
<v Speaker 8>And it also depends on how senior you are, right?

0:11:21.059 --> 0:11:23.860
<v Speaker 8>So carried interest is allocated on a points basis, like

0:11:23.900 --> 0:11:25.059
<v Speaker 8>basis points in a fund.

0:11:25.179 --> 0:11:27.780
<v Speaker 9>They basically take the pie out of 100.

0:11:27.760 --> 0:11:31.870
<v Speaker 8>And you, managing director, get 20 points.

0:11:31.950 --> 0:11:35.170
<v Speaker 9>And you, brand new VP, get two. I'm just making

0:11:35.210 --> 0:11:36.589
<v Speaker 9>numbers up. But you get the idea.

0:11:37.850 --> 0:11:40.230
<v Speaker 8>So if you're a more senior dealmaker at a firm,

0:11:40.670 --> 0:11:43.849
<v Speaker 8>you've got points. You've got more points than the junior folks.

0:11:44.190 --> 0:11:46.620
<v Speaker 8>And you've got points off of Multiple funds.

0:11:46.920 --> 0:11:47.140
<v Speaker 2>Right.

0:11:47.179 --> 0:11:49.920
<v Speaker 8>So maybe you've got points in the 2018 fund that

0:11:50.040 --> 0:11:53.400
<v Speaker 8>just did gangbusters because it was still in the low

0:11:53.470 --> 0:11:56.650
<v Speaker 8>interest era. You've sold a bunch of stuff for 3X

0:11:56.850 --> 0:12:00.670
<v Speaker 8>and you're happy as a clam. If you're a junior

0:12:00.710 --> 0:12:06.270
<v Speaker 8>person who maybe started in the industry in 2018, 2019.

0:12:06.270 --> 0:12:11.760
<v Speaker 8>And now in 2026, you're you know, you've got some carry,

0:12:11.820 --> 0:12:15.320
<v Speaker 8>but you've got carry in funds that really haven't started

0:12:15.380 --> 0:12:19.080
<v Speaker 8>paying out yet. And so you're not you're not seeing

0:12:19.120 --> 0:12:19.750
<v Speaker 8>a lot right now.

0:12:19.990 --> 0:12:20.760
<v Speaker 9>And that's tough.

0:12:20.590 --> 0:12:23.209
<v Speaker 8>Because like people in their 30s, you know, they're they're

0:12:23.230 --> 0:12:25.510
<v Speaker 8>having families. They want to buy houses. They want to

0:12:25.550 --> 0:12:29.660
<v Speaker 8>like do stuff. And they don't have that money. They

0:12:29.679 --> 0:12:32.520
<v Speaker 8>don't have those prior gains to lean on that the

0:12:32.559 --> 0:12:33.340
<v Speaker 8>senior folks do.

0:12:33.620 --> 0:12:36.500
<v Speaker 1>Stay with us. More from Bloomberg Intelligence coming up after this.

0:12:40.380 --> 0:12:44.230
<v Speaker 4>You're listening to Bloomberg Intelligence with Scarlett Fu and Paul

0:12:44.270 --> 0:12:46.390
<v Speaker 4>Sweeney on Bloomberg Radio.

0:12:47.670 --> 0:12:49.290
<v Speaker 5>All right, Scarlett Fu and Paul Sweeney. We're live here

0:12:49.309 --> 0:12:51.530
<v Speaker 5>in our Bloomberg Interactive Broker Studio in New York City.

0:12:51.690 --> 0:12:54.620
<v Speaker 5>We are streaming live on YouTube as well. I think

0:12:54.660 --> 0:12:58.080
<v Speaker 5>where we are with this AI narrative in the marketplace

0:12:58.140 --> 0:13:00.620
<v Speaker 5>is Okay, we know who's spending money.

0:13:01.200 --> 0:13:01.660
<v Speaker 1>It's big.

0:13:02.160 --> 0:13:05.780
<v Speaker 5>We know who's financing the money, debt, and equity markets.

0:13:06.179 --> 0:13:09.319
<v Speaker 5>Now the question is becoming, all right, what's the ROI

0:13:09.460 --> 0:13:12.030
<v Speaker 5>on this spend? What's the return on this investment here?

0:13:12.050 --> 0:13:13.230
<v Speaker 5>I think our next guest can help us out a

0:13:13.230 --> 0:13:16.969
<v Speaker 5>little bit here. Garima Kapoor joins us. She's a co-CEO

0:13:17.010 --> 0:13:20.830
<v Speaker 5>and co-founder of a private company called Minio out there

0:13:20.850 --> 0:13:24.720
<v Speaker 5>in Redwood City, California. Garima, thanks so much for joining

0:13:24.750 --> 0:13:25.360
<v Speaker 5>us here.

0:13:25.380 --> 0:13:27.300
<v Speaker 1>How do you talk to people about.

0:13:28.230 --> 0:13:33.280
<v Speaker 5>enterprises adapting AI and what type of returns they should

0:13:33.320 --> 0:13:33.850
<v Speaker 5>be expecting.

0:13:33.890 --> 0:13:34.950
<v Speaker 1>How do you think about that?

0:13:36.320 --> 0:13:40.300
<v Speaker 10>Thank you for having me, first of all. And enterprises,

0:13:40.720 --> 0:13:44.000
<v Speaker 10>everyone is excited about AI and for all the right reasons.

0:13:44.620 --> 0:13:48.140
<v Speaker 10>For enterprises, they are in different stages of the journey

0:13:48.210 --> 0:13:52.030
<v Speaker 10>when it comes to AI. There are certain applications like

0:13:52.050 --> 0:13:55.809
<v Speaker 10>software engineering or customer success where AI is getting heavily

0:13:55.850 --> 0:13:59.050
<v Speaker 10>leveraged on, and that is definitely increasing the productivity of

0:13:59.090 --> 0:14:03.450
<v Speaker 10>the employees. But how much of that productivity is translating into.

0:14:03.250 --> 0:14:04.610
<v Speaker 2>The actual ROI?

0:14:04.830 --> 0:14:07.870
<v Speaker 10>For example, if you're using AI to build your software,

0:14:08.429 --> 0:14:11.750
<v Speaker 10>is it having a meaningful impact in resulting in the

0:14:11.790 --> 0:14:15.390
<v Speaker 10>time for shipment of your product? Or is it resulting

0:14:15.429 --> 0:14:16.880
<v Speaker 10>in less bugs in the software?

0:14:17.000 --> 0:14:17.459
<v Speaker 2>All those things.

0:14:17.480 --> 0:14:20.860
<v Speaker 10>So that journey from productivity to ROI, the data is

0:14:20.940 --> 0:14:25.280
<v Speaker 10>still not clear on that, but enterprises are definitely increasingly

0:14:25.360 --> 0:14:30.720
<v Speaker 10>adopting the AI for making their lives easier and more productive.

0:14:31.280 --> 0:14:33.729
<v Speaker 5>Grima, let me rewind a little bit and ask you

0:14:33.830 --> 0:14:36.989
<v Speaker 5>to just describe what you guys do at Minio in

0:14:37.030 --> 0:14:37.650
<v Speaker 5>the AI space.

0:14:38.450 --> 0:14:43.450
<v Speaker 10>Yeah, so Minayo provides the data and memory foundation for

0:14:43.510 --> 0:14:47.720
<v Speaker 10>enterprise AI. As I was discussing earlier, the models are

0:14:47.750 --> 0:14:51.740
<v Speaker 10>getting extremely commoditized. So for any enterprise to be successful

0:14:51.860 --> 0:14:55.260
<v Speaker 10>in their AI journey, they need to start bringing all

0:14:55.300 --> 0:14:59.840
<v Speaker 10>their organization together, organization data together in a secured and

0:14:59.880 --> 0:15:02.540
<v Speaker 10>a governed way, and then expose it to the AI

0:15:02.660 --> 0:15:05.670
<v Speaker 10>or the agents, building the right kind of context to

0:15:05.790 --> 0:15:08.730
<v Speaker 10>expose for the reasoning engines, because last thing you want

0:15:08.810 --> 0:15:12.200
<v Speaker 10>is expose all your raw data for cloud or open

0:15:12.220 --> 0:15:15.440
<v Speaker 10>AI to leverage on it and take all the intelligence away.

0:15:15.780 --> 0:15:21.520
<v Speaker 10>So Minaya provides that infrastructure software for providing data, memory,

0:15:21.640 --> 0:15:23.990
<v Speaker 10>and context without burning a hole in your pockets when

0:15:24.030 --> 0:15:24.830
<v Speaker 10>it comes to tokens.

0:15:26.920 --> 0:15:31.100
<v Speaker 5>Enterprises, where are enterprises broadly defined in terms of adopting AI?

0:15:31.180 --> 0:15:34.560
<v Speaker 5>I mean, just from the consumer level, just yesterday from Meta,

0:15:34.600 --> 0:15:37.100
<v Speaker 5>we got the Meta Muse. So, I mean, that's a

0:15:37.360 --> 0:15:39.040
<v Speaker 5>couple of days ago with that announcement. So we know

0:15:40.280 --> 0:15:43.820
<v Speaker 5>consumers are adopting AI. How about enterprises?

0:15:45.290 --> 0:15:47.000
<v Speaker 2>Enterprises are adopting AI.

0:15:47.130 --> 0:15:50.220
<v Speaker 10>And like I said, it's in very well-defined use cases

0:15:50.320 --> 0:15:53.780
<v Speaker 10>like for software engineering, because you can see the productivity

0:15:53.840 --> 0:15:57.040
<v Speaker 10>like Claude Opus is able to, or Fable is able

0:15:57.090 --> 0:16:00.450
<v Speaker 10>to do a really great job. And even in our organization,

0:16:00.510 --> 0:16:03.270
<v Speaker 10>we have mandated that it is AI first and all

0:16:03.290 --> 0:16:06.650
<v Speaker 10>the engineers first. need to stop writing handwritten codes. It

0:16:06.690 --> 0:16:09.510
<v Speaker 10>needs to be generated by AI. And that's the direction

0:16:09.550 --> 0:16:11.950
<v Speaker 10>which I see a lot of the other enterprises also

0:16:12.030 --> 0:16:15.810
<v Speaker 10>adopting internally. So we do see that adoption, but it's

0:16:15.930 --> 0:16:19.540
<v Speaker 10>on very specific use cases, not across the board. Customer

0:16:19.560 --> 0:16:23.200
<v Speaker 10>success is another use case where we see adoption of

0:16:23.340 --> 0:16:26.320
<v Speaker 10>AI getting increasingly used so that the tickets for the

0:16:26.900 --> 0:16:29.860
<v Speaker 10>customers who are reaching out to the enterprises for any

0:16:29.900 --> 0:16:32.600
<v Speaker 10>kind of issues, those tickets can get managed effectively and

0:16:32.620 --> 0:16:34.760
<v Speaker 10>so on and so forth. So we do see adoption

0:16:34.780 --> 0:16:37.760
<v Speaker 10>of AI, but in a very specific use cases.

0:16:38.800 --> 0:16:41.660
<v Speaker 5>There's been a lot of talk, I guess, just recently

0:16:41.920 --> 0:16:45.620
<v Speaker 5>from some of the leaders of these AI companies talking

0:16:45.640 --> 0:16:49.710
<v Speaker 5>about maybe putting some guardrails on this technology. And there's

0:16:49.730 --> 0:16:52.490
<v Speaker 5>been a lot of pushback, most notably from President Trump

0:16:53.070 --> 0:16:57.210
<v Speaker 5>on that. What's the feeling out in the could play out,

0:16:57.470 --> 0:16:58.010
<v Speaker 5>should play out?

0:16:59.330 --> 0:17:01.030
<v Speaker 2>Yeah, I think guardrails are important.

0:17:01.050 --> 0:17:03.190
<v Speaker 10>If you see all the innovation that is coming out

0:17:03.330 --> 0:17:07.570
<v Speaker 10>in AIs, either by Frontier Labs, which is OpenAI and Anthropic,

0:17:07.730 --> 0:17:12.090
<v Speaker 10>or with open source models, which is Alibaba deep seek models, right?

0:17:12.290 --> 0:17:16.410
<v Speaker 10>And as private companies, as they should, they're motivated by

0:17:16.450 --> 0:17:19.980
<v Speaker 10>their own personal gains and rightly so. So an AI

0:17:20.020 --> 0:17:22.840
<v Speaker 10>is a public good that is going to impact everyone.

0:17:22.980 --> 0:17:25.340
<v Speaker 2>All of our lives are going to be meaningfully impacted.

0:17:25.859 --> 0:17:29.100
<v Speaker 10>So government has to step in and build at least

0:17:29.140 --> 0:17:33.010
<v Speaker 10>a regulatory security framework and validate that this is the

0:17:33.030 --> 0:17:35.969
<v Speaker 10>security framework that looks like, and every model needs to

0:17:36.010 --> 0:17:39.390
<v Speaker 10>pass through that security framework to be safely be adopted.

0:17:39.030 --> 0:17:40.590
<v Speaker 2>By consumers and by enterprise.

0:17:40.630 --> 0:17:45.109
<v Speaker 10>So I'm absolutely in favor of having government, have an

0:17:45.150 --> 0:17:48.949
<v Speaker 10>independent regulatory authority that can keep the frontier labs, that

0:17:48.990 --> 0:17:51.070
<v Speaker 10>can keep the open source models in checks when it

0:17:51.130 --> 0:17:52.129
<v Speaker 10>comes to the security.

0:17:52.570 --> 0:17:55.510
<v Speaker 5>It's a little different than historically out in the Valley.

0:17:55.570 --> 0:17:58.820
<v Speaker 5>Most folks kind of appreciated the light government touch, but

0:17:58.840 --> 0:18:00.180
<v Speaker 5>you think this time could be different?

0:18:01.900 --> 0:18:02.670
<v Speaker 2>It has to be.

0:18:03.010 --> 0:18:05.710
<v Speaker 10>It has to be right because it's going to impact

0:18:05.790 --> 0:18:09.070
<v Speaker 10>everyone meaningfully and nobody knows the extent of the impact.

0:18:09.109 --> 0:18:09.350
<v Speaker 2>Right.

0:18:09.869 --> 0:18:13.629
<v Speaker 10>The problem that happens is that in any kind of

0:18:13.690 --> 0:18:18.340
<v Speaker 10>whenever there is exponential technological innovation, it always happens that

0:18:18.380 --> 0:18:21.100
<v Speaker 10>you don't have all the information to make the right decisions.

0:18:22.200 --> 0:18:23.199
<v Speaker 2>For the customers.

0:18:23.440 --> 0:18:26.580
<v Speaker 10>And I do feel government is the right authority and

0:18:26.640 --> 0:18:29.260
<v Speaker 10>the place to get started, especially in a democratic setup.

0:18:29.820 --> 0:18:34.070
<v Speaker 10>So yeah, unlike before, there is nothing like the world

0:18:34.109 --> 0:18:36.470
<v Speaker 10>has seen what AI is exposing us all to.

0:18:36.530 --> 0:18:38.570
<v Speaker 2>So I do feel government regulation is important.

0:18:38.869 --> 0:18:43.670
<v Speaker 4>This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

0:18:43.830 --> 0:18:47.730
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0:18:47.730 --> 0:18:53.030
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0:18:53.170 --> 0:18:56.350
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