WEBVTT - Jobs, AI and Tech Earnings 0:00:00.040 --> 0:00:15.000 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:15.080 --> 0:00:18.759 from the heart of Silicon Valley with Ed Ludlow in 0:00:19.000 --> 0:00:19.800 Men Francisco. 0:00:23.239 --> 0:00:26.279 This is Bloomberg Tech coming up. The jobs markets cooling 0:00:26.320 --> 0:00:30.160 with US employers unexpectedly cutting jobs in July, and AI 0:00:30.520 --> 0:00:33.000 may be part of the story, plus tech earnings back 0:00:33.000 --> 0:00:35.800 in focus will be joined by the CEOs of Twilio, 0:00:36.200 --> 0:00:40.480 Lyft and DraftKings on their results and Open AI's first 0:00:40.560 --> 0:00:43.760 consumer device will be an AI smart speaker that will 0:00:43.800 --> 0:00:48.280 look like a donut. Will have the details. This is 0:00:48.320 --> 0:00:51.680 what markets look like this Friday. Happy Friday to you. 0:00:51.880 --> 0:00:55.160 It is a story about jobs, data, tech stocks pushing 0:00:55.200 --> 0:00:58.680 highlan asset one hundred up eight ten percent, some outperformance 0:00:58.720 --> 0:01:01.040 in chips and US year yield. I picked the US 0:01:01.120 --> 0:01:03.440 ten year yeld because we saw a move across the curve. 0:01:03.480 --> 0:01:06.880 But why not four point six four percent on the yield. 0:01:07.440 --> 0:01:09.280 We need to get into the numbers. Is there an 0:01:09.319 --> 0:01:13.440 AI story? Bloomberg International Economics and Policy Editor Mike McKee 0:01:13.840 --> 0:01:16.200 is with us, start with the numbers themselves, Like, what 0:01:16.480 --> 0:01:17.800 did the data show this morning? 0:01:18.319 --> 0:01:19.200 In simple terms? 0:01:19.440 --> 0:01:22.000 Well, basically, we lost jobs for the first time in 0:01:22.080 --> 0:01:24.920 many months, twenty three thousand jobs. Last time we lost 0:01:25.000 --> 0:01:28.480 some jobs was in February. Now why did that happen. 0:01:28.520 --> 0:01:31.839 A lot of it was government jobs. Local government education 0:01:32.080 --> 0:01:35.880 fell by fifty thousand, so it's not as bad as 0:01:35.920 --> 0:01:38.680 it looks on the surface. And unemployment fell to four 0:01:38.720 --> 0:01:41.480 point one percent. The reason for that is because a 0:01:41.600 --> 0:01:45.679 labor force shrunk again two hundred and forty thousand, fewer 0:01:45.760 --> 0:01:48.840 people looking for work, which pushed unemployment down to four 0:01:48.840 --> 0:01:51.880 point one percent. If you're not looking for work, you're 0:01:51.920 --> 0:01:55.559 not unemployed. But the good news and the potential AI 0:01:55.720 --> 0:01:58.560 story here is that on the positive side of the 0:01:58.680 --> 0:02:02.040 jobs numbers, we saw a lot of hiring in the 0:02:02.120 --> 0:02:07.760 sectors that AI touches, especially in construction for AI, data centers, 0:02:07.760 --> 0:02:11.960 et cetera, specialty contractors, and non residential construction, almost twenty 0:02:12.000 --> 0:02:16.040 thousand jobs in total, as demand for workers in those 0:02:16.120 --> 0:02:18.880 areas continues to really ramp up. And then you look 0:02:18.919 --> 0:02:23.360 at the manufacturing side for computers and semiconductors. 0:02:22.639 --> 0:02:24.639 And they added jobs as well. 0:02:24.840 --> 0:02:27.600 We haven't seen in a number of other categories, so 0:02:27.760 --> 0:02:30.399 ed at this point, it looks like AI is one 0:02:30.440 --> 0:02:33.320 of the few areas that did well last month. And 0:02:33.600 --> 0:02:37.320 that doesn't show any signs of really slowing down the. 0:02:37.360 --> 0:02:42.480 Legend mistem Economy Bloomberg International Economics and Policy correspondent Mike mckeeth, 0:02:42.520 --> 0:02:44.840 Thank you very much. Let's stay with that job's impact, 0:02:44.880 --> 0:02:48.079 joining us as Sarah Franklin Lattis CEO, and you know, 0:02:48.440 --> 0:02:52.200 Mike made the data so clear where there were gains 0:02:52.639 --> 0:02:58.360 were in industries that are seeing AI capital deployed, construction 0:02:58.440 --> 0:03:02.280 of data centers, for example. Your interpretation of those data. 0:03:02.080 --> 0:03:06.440 Points, Our interpretation is that this isn't a crisis. 0:03:06.520 --> 0:03:08.120 This really is the recalibration. 0:03:08.639 --> 0:03:12.679 What you're seeing is the workforce changing and evolving as 0:03:12.720 --> 0:03:15.640 AI takes shape, not just in the tech sector, but 0:03:15.680 --> 0:03:19.040 also in manufacturing and construction. So this is really a 0:03:19.080 --> 0:03:21.639 recalibration that we've been anticipating. 0:03:23.720 --> 0:03:28.280 How committed our companies big and small on your platform 0:03:28.760 --> 0:03:31.600 to sort of long term hiring. The bit that I'm 0:03:31.720 --> 0:03:34.960 struggling to understand is like, in the short term we 0:03:35.040 --> 0:03:38.560 get monthly changes in numbers, but companies come up with 0:03:38.600 --> 0:03:41.240 plans for this year, next year all the time. Do 0:03:41.280 --> 0:03:43.840 you see any evidence that they're restructuring the composition of 0:03:43.880 --> 0:03:44.840 those workforces? 0:03:46.080 --> 0:03:46.720 And we do. 0:03:46.920 --> 0:03:50.400 We see that companies are now through the chaos that 0:03:50.440 --> 0:03:54.000 we had the last several years where there wasn't predictability, 0:03:54.440 --> 0:03:58.440 and now companies are planning the long term. They're understanding 0:03:58.720 --> 0:04:01.240 what AI is good for and what it's not. 0:04:01.400 --> 0:04:03.960 They understand it much better than we did a year ago. 0:04:04.440 --> 0:04:08.520 So you're seeing companies recalibrate their workforce. You're seeing for 0:04:08.720 --> 0:04:12.800 deployed engineers. You're seeing people understand how AI can help them. 0:04:13.080 --> 0:04:14.280 And people are also. 0:04:14.080 --> 0:04:17.520 Realizing that just because AI is here doesn't mean that 0:04:17.560 --> 0:04:20.080 the work isn't. You can't just lay off a lot 0:04:20.080 --> 0:04:22.520 of workers and the work go away. You still need 0:04:22.920 --> 0:04:26.080 the knowledge, you still need the trust that you have 0:04:26.160 --> 0:04:29.279 in your company and the culture. And you see companies saying, Okay, 0:04:29.480 --> 0:04:31.320 we need our people, but we need to invest in 0:04:31.360 --> 0:04:34.640 their skills, not severance packages. We need to help them 0:04:34.960 --> 0:04:37.680 come along with this new trend. And so again it's 0:04:37.680 --> 0:04:40.600 a recalibration of the workforce and it's a transformation that 0:04:40.640 --> 0:04:45.240 every company is making and they're planning longer term. 0:04:45.400 --> 0:04:50.880 How competitive is compensation right now for existing workforce, but 0:04:50.960 --> 0:04:53.800 also if they are bringing people in in specific subsectors, 0:04:54.600 --> 0:04:57.160 the need to pay to get those best people. 0:04:58.160 --> 0:05:01.200 Yeah, I mean, this is a reality, is that people 0:05:01.600 --> 0:05:04.800 with the skills in demand will be able to command 0:05:05.080 --> 0:05:10.440 solid compensation. And as cost rise, so do wages need 0:05:10.480 --> 0:05:14.120 to as well. And this is again a recalibration that 0:05:14.160 --> 0:05:16.839 you're seeing in the workforce, and it's a call to 0:05:16.920 --> 0:05:19.320 everyone to make sure that you are skilled in AI, 0:05:19.640 --> 0:05:24.200 that you understand and are proficient in the technology skills 0:05:24.240 --> 0:05:28.279 that companies are hiring for. And it's a tried and 0:05:28.320 --> 0:05:31.920 true thing that if there's skills that are in demand, 0:05:32.200 --> 0:05:34.200 companies will pay for them. 0:05:35.120 --> 0:05:38.160 What's one thing that you're saying through the Lattice platform 0:05:38.160 --> 0:05:40.840 that surprised you since last year on the show. 0:05:42.040 --> 0:05:45.039 So something that's surprised me is how a lot of 0:05:45.120 --> 0:05:48.200 companies are coming to us and saying, Sarah, we just 0:05:48.240 --> 0:05:50.560 want to get back to business basics of how we 0:05:50.600 --> 0:05:54.480 manage our workforce, how we understand the performance of our workforce, 0:05:54.520 --> 0:05:58.760 and really that workforce intelligence and so the basic habits 0:05:58.839 --> 0:06:01.240 that you need from all the away from your executive 0:06:01.279 --> 0:06:05.799 suite to your individual contributor to understand how people are performing, 0:06:06.120 --> 0:06:09.200 how their work relates to the outcomes of a company. 0:06:09.560 --> 0:06:12.839 That is what the back to basics is so powerful 0:06:12.920 --> 0:06:13.360 right now. 0:06:13.640 --> 0:06:15.520 So you're using the word performance. 0:06:15.560 --> 0:06:18.080 What was so interesting this morning, outside of sort of 0:06:18.080 --> 0:06:22.680 the technology contexts, was how quickly the conversation goes to productivity. 0:06:23.360 --> 0:06:25.799 Right when you get set of jobs numbers. 0:06:26.000 --> 0:06:28.279 You know, all these different maybe they're from fixed income, 0:06:28.360 --> 0:06:31.159 maybe they're inequities market saying oh, you know, we're starting 0:06:31.160 --> 0:06:34.880 to see AI driven productivity in the economy. What's the 0:06:34.920 --> 0:06:36.840 sort of workforce evidence of that. 0:06:38.160 --> 0:06:41.120 Well, the workforce evidence is that what you're seeing is 0:06:41.160 --> 0:06:44.240 people are able to really do more, but in a 0:06:44.279 --> 0:06:48.040 way that is strategic to the business. It's around helping 0:06:48.120 --> 0:06:52.719 AI automate tasks that used to distract your time and 0:06:52.760 --> 0:06:55.400 attention and when you can put your time into the 0:06:55.440 --> 0:06:58.320 strategy really thinking of how you're going to grow, because 0:06:58.400 --> 0:06:59.640 you don't shrink your way to growth. 0:06:59.760 --> 0:06:59.800 ED. 0:07:00.279 --> 0:07:02.799 This is every company is thinking how do I grow? 0:07:02.880 --> 0:07:03.560 How do I perform? 0:07:03.560 --> 0:07:06.760 How do I unlock the human potential? And Lotus helps 0:07:06.760 --> 0:07:08.960 all of our customers do that. And that's the frame 0:07:09.000 --> 0:07:11.520 of mind that all of the companies are in right 0:07:11.560 --> 0:07:14.120 now is how do we grow and how do we 0:07:14.240 --> 0:07:18.600 use our existing workforce, invest in their skills, invest in 0:07:18.640 --> 0:07:20.440 how AI can help them to grow. 0:07:21.200 --> 0:07:22.880 That was so beautifully six sincts. 0:07:22.960 --> 0:07:25.320 You know how AI can automate a task that would 0:07:25.320 --> 0:07:28.480 be distracting or take up your time. If somebody's good 0:07:28.480 --> 0:07:31.840 at AI, and it's good at allowing AI to do 0:07:31.960 --> 0:07:34.960 that time consumption for them, are they able to then 0:07:35.000 --> 0:07:36.960 turn around in command higher compensation. 0:07:38.520 --> 0:07:41.840 They are because they have the knowledge that is immediate 0:07:42.240 --> 0:07:46.480 that can augment their skills and expertise. And that is 0:07:46.520 --> 0:07:50.480 how I mean even today the job supports information is 0:07:50.600 --> 0:07:54.880 something which AI helps me deeply understand everything that's going 0:07:54.920 --> 0:07:57.800 on nuanced, I don't have to spend an hour doing research. 0:07:58.040 --> 0:08:01.160 I can get the information very quickly, and that is 0:08:01.280 --> 0:08:04.040 how I can then show up with my perspectives as 0:08:04.040 --> 0:08:07.200 a CEO of an HR tech company to share what 0:08:07.240 --> 0:08:10.680 I'm seeing instead of spending my time just understanding the 0:08:11.160 --> 0:08:13.520 all of the data. AI can really help me do 0:08:13.600 --> 0:08:15.280 that and be strategic as a CEO. 0:08:16.840 --> 0:08:20.560 Sarah Franklin A laddis, thank you very much. Indeed a 0:08:20.560 --> 0:08:24.080 big factor in the market. SpaceX shares are bouncing back 0:08:24.440 --> 0:08:27.720 even as a massive wave of inside A stock hits 0:08:27.760 --> 0:08:33.160 the market. Yes, we're up almost nine percent. Shares climbing Thursday, 0:08:33.800 --> 0:08:38.360 of climbing Friday and Thursday in a multi day move, 0:08:38.480 --> 0:08:41.880 as the lock up expired for as many as nine hundred. 0:08:41.600 --> 0:08:42.480 And twelve million shares. 0:08:42.520 --> 0:08:46.080 That's worth roughly one hundred billion dollars, but follows a 0:08:46.120 --> 0:08:50.280 fourteen percent plunge Wednesday after SpaceX's first earnings report as 0:08:50.320 --> 0:08:53.400 a public company, which showed higher than expected AI spending. 0:08:53.880 --> 0:08:57.400 One of the catalysts right now is Augus upgrading the 0:08:57.400 --> 0:09:00.520 stock to buy, pointing to a rapid payback from those 0:09:00.520 --> 0:09:04.000 AI investments. A one hundred and sixty dollars price target, 0:09:04.080 --> 0:09:07.040 but we remain pretty firmly below the IPO price of 0:09:07.040 --> 0:09:11.079 one hundred and thirty five dollars a share set in June. Okay, 0:09:11.120 --> 0:09:15.480 coming up. Earning season continues. Twilio just beat analyst expectations 0:09:15.480 --> 0:09:18.160 for its second quarter, blue past them. Really, we had 0:09:18.200 --> 0:09:20.160 the CEO Cozemership Chandler with us. 0:09:20.200 --> 0:09:22.000 Next, this is Bloomberg. 0:09:21.640 --> 0:09:38.160 Tech cloud communications platform. Twilio reported second quarter earnings with 0:09:38.320 --> 0:09:44.200 strong results, beating analyst expectations on revenue and reporting record profit, profitability, 0:09:44.360 --> 0:09:46.640 and free cashflow. Yes, that is a stock that's up 0:09:46.679 --> 0:09:50.280 twenty nine percent, on track for its biggest jump since 0:09:50.400 --> 0:09:54.480 May of twenty twenty. Twilio CEO Cosmoship Chandler joins us 0:09:54.800 --> 0:09:56.280 here in the San Francisco studio. 0:09:56.800 --> 0:09:58.160 It's a big stock move. 0:09:58.480 --> 0:09:59.600 Yeah, I mean, we had a great quarter. 0:10:00.200 --> 0:10:03.640 We were able to re accelerate growth on the top line, 0:10:03.800 --> 0:10:07.600 grow our gross profits, and turn in record free cash 0:10:07.600 --> 0:10:10.040 flow and profitability. I mean, I think right now we're 0:10:10.120 --> 0:10:13.480 one of those kind of rare stocks that's able to 0:10:13.520 --> 0:10:17.600 demonstrate you know, quite good financial characteristics, also reduce our 0:10:17.640 --> 0:10:21.120 stock based compensation, and you know, kind of position ourselves 0:10:21.160 --> 0:10:22.079 as an AI winner. 0:10:22.200 --> 0:10:24.320 So an AI winner. I find that really interesting. I've 0:10:24.360 --> 0:10:25.959 tried to talk to as many people as I can 0:10:26.080 --> 0:10:30.120 about is Twilio the predator or the prey in this 0:10:30.280 --> 0:10:32.400 in this AI world? And actually the response was they 0:10:32.400 --> 0:10:36.920 are AI proof. Essentially, you have done deals with forty 0:10:36.960 --> 0:10:41.560 five hundred, four thousand, five hundred carrier agreements, right that 0:10:41.559 --> 0:10:46.160 that is bulk messaging, Like that shows that you have 0:10:46.200 --> 0:10:47.760 a big place in this era. 0:10:48.200 --> 0:10:49.600 Well, I mean, I think the way to think about it, 0:10:49.600 --> 0:10:53.000 it's actually forty eight hundred, right, forty eight hundred different 0:10:53.080 --> 0:10:57.200 interconnections across one hundred and eighty countries all over the world. 0:10:57.280 --> 0:11:00.880 Like that's a level of complexity that is regulated. It 0:11:00.920 --> 0:11:05.040 requires like physical contracts that actually have to get done 0:11:05.559 --> 0:11:09.160 and a very very significant level of compliance that we 0:11:09.200 --> 0:11:11.360 make sure that our customers go through so that we 0:11:11.360 --> 0:11:14.920 protect consumers on the other side. And that complexity actually 0:11:14.960 --> 0:11:18.960 creates mode And I wouldn't actually necessarily call ourselves predator 0:11:19.120 --> 0:11:19.520 or prey. 0:11:19.559 --> 0:11:20.360 I mean the way that we. 0:11:20.280 --> 0:11:23.960 Position ourselves is as the Switzerland of kind of this 0:11:24.040 --> 0:11:27.040 AI era. I mean, we want to be infrastructure that 0:11:27.200 --> 0:11:31.680 any company can integrate to and be seamless based on 0:11:31.920 --> 0:11:32.960 what choices they've. 0:11:32.800 --> 0:11:33.480 Already made about it. 0:11:33.600 --> 0:11:36.160 You do have AI based or AI powered messaging tools 0:11:36.200 --> 0:11:40.239 for example, Those also showed traction in the Core to Gone. 0:11:40.520 --> 0:11:40.760 Yeah. 0:11:40.800 --> 0:11:43.280 I mean the interesting thing, to be honest, is that 0:11:43.440 --> 0:11:45.800 AI is a small part of the story, to be. 0:11:45.800 --> 0:11:48.040 Honest for you right now, for us. 0:11:47.840 --> 0:11:50.360 Today, I mean, it's certainly creating a little bit of tailwind, 0:11:50.440 --> 0:11:53.920 but in terms of its like material contribution to revenue 0:11:54.480 --> 0:11:57.720 that is still relatively modest. And I think given the 0:11:57.760 --> 0:12:00.840 fact that we're relatively early innings in the AI story, 0:12:00.920 --> 0:12:03.000 there's a lot more tailwind coming here for the company. 0:12:03.040 --> 0:12:05.240 Well, look at it another way, how many AI native 0:12:05.320 --> 0:12:07.800 companies I know people some people say umbrage with that 0:12:07.880 --> 0:12:11.319 phrase rely on Twilio thousands. 0:12:11.640 --> 0:12:12.600 That's the truth. 0:12:12.840 --> 0:12:17.200 But the reality also is that they are relatively small 0:12:17.240 --> 0:12:18.520 contributors to revenue. 0:12:18.600 --> 0:12:18.760 Right. 0:12:18.800 --> 0:12:21.080 The reality on the other side of it is is 0:12:21.080 --> 0:12:25.080 that enterprises like they're the ones spending the dollars. Right, 0:12:25.160 --> 0:12:28.200 So if you think about the contribution to revenue that's 0:12:28.280 --> 0:12:32.319 really coming from much larger companies. Even though we're super excited. 0:12:31.920 --> 0:12:33.719 To be able to work with all these really. 0:12:33.480 --> 0:12:38.440 Creative AI startups orion ai ultrap, you know, we all 0:12:38.480 --> 0:12:40.959 the way through to you know, a digital native like 0:12:41.000 --> 0:12:43.839 an Alassian, or you know, kind of even a leading 0:12:43.880 --> 0:12:46.560 home retailer that we pointed to in our most recent remarks, 0:12:46.960 --> 0:12:50.200 like that whole breadth of capabilities that we offer to 0:12:50.800 --> 0:12:53.080 any company on the planet. Like, that's what gets me 0:12:53.120 --> 0:12:54.400 excited about the opportunity here. 0:12:54.440 --> 0:12:57.320 Again, the stock is up almost thirty percent and on 0:12:57.400 --> 0:12:59.400 track for its best day since May of twenty twenty, 0:12:59.480 --> 0:13:01.800 but up now seventy six percent year to day, so 0:13:01.800 --> 0:13:04.680 you're getting the credit for it. The big picture academic 0:13:04.679 --> 0:13:07.280 debate is what does the world look like where a 0:13:07.320 --> 0:13:11.760 consumer an individual interacts with a real AI agent, And 0:13:11.800 --> 0:13:14.280 there are lots of parts of your business where you 0:13:14.440 --> 0:13:16.839 have to think about that future, how do you think 0:13:16.840 --> 0:13:17.319 about it? 0:13:17.679 --> 0:13:20.920 I mean, actually, I think that provides even mortail ones, right. 0:13:20.960 --> 0:13:23.560 I mean the future that we're literally planning for is 0:13:23.600 --> 0:13:28.360 one in which interactions are human agent human agent to human. 0:13:28.800 --> 0:13:32.400 That's going to require channels. We're also sort of making 0:13:32.559 --> 0:13:36.640 investments that anticipate a future in which if you're interacting 0:13:36.679 --> 0:13:38.520 with an agent, you've got to be able to know. 0:13:38.480 --> 0:13:39.760 Who they are on the other side. 0:13:39.760 --> 0:13:43.520 And so we're starting to make investments in identity, for example, 0:13:43.960 --> 0:13:47.160 through the channels that we already provide to our customers, 0:13:47.480 --> 0:13:50.920 and then using context as a means to be able 0:13:50.920 --> 0:13:54.360 to power this next era of AGENTICAI. 0:13:55.480 --> 0:13:58.480 Prior to being CEO, you had other roles at Twilio, 0:13:58.640 --> 0:14:00.480 and I think a lot of people are looking at 0:14:00.520 --> 0:14:04.760 the bottom line and how structurally different the profit story 0:14:04.800 --> 0:14:07.959 for this company is. I think it's right to say 0:14:08.000 --> 0:14:10.920 that that was a focus for you in your tenure 0:14:10.920 --> 0:14:12.000 as CEO of the company. 0:14:12.400 --> 0:14:12.600 Yeah. 0:14:12.640 --> 0:14:14.480 I mean it's been a focus, and I mean I 0:14:14.480 --> 0:14:16.360 think we want to be known as people that are 0:14:16.400 --> 0:14:19.200 running the company well, we want to be financially disciplined. 0:14:19.600 --> 0:14:23.160 I think we have opportunities to make new investments. But frankly, 0:14:23.560 --> 0:14:25.760 we don't have to start a new investment cycle. We 0:14:25.760 --> 0:14:29.280 can take the cash flows that we're already generating, reinvest 0:14:29.360 --> 0:14:32.280 some of that back into the company, but also provide 0:14:32.280 --> 0:14:34.160 operating leverage back to our investor base. 0:14:34.200 --> 0:14:37.280 We've had a very financed focused conversation and I'm going 0:14:37.280 --> 0:14:39.160 to end that way as well. You know, you have 0:14:40.200 --> 0:14:43.320 before you double digit organic growth, right, kind of set 0:14:43.320 --> 0:14:46.560 out into the future, what's the biggest headwind or risk 0:14:46.640 --> 0:14:46.920 to that. 0:14:47.760 --> 0:14:50.440 I don't see a lot of headwinds kind of sitting 0:14:50.440 --> 0:14:53.160 here today. I mean, look, we always operate in a 0:14:53.280 --> 0:14:57.600 dynamic macroeconomic environment. I think the AI story, you know, 0:14:57.680 --> 0:15:01.040 it's a very long, kind of secular tailwind. It's probably 0:15:01.080 --> 0:15:03.160 going to be bumpy from time to time. But as 0:15:03.200 --> 0:15:06.200 I kind of look through like the medium to long term, 0:15:06.560 --> 0:15:08.960 I see a lot of opportunities for the company, and 0:15:09.360 --> 0:15:11.040 you know, we're ready for the moment. We're kind of 0:15:11.080 --> 0:15:14.160 hitting our stride and we're very, very excited about what 0:15:14.160 --> 0:15:16.360 we're building and what our customers are doing, and it's 0:15:16.360 --> 0:15:19.840 on us to anticipate their next move'. 0:15:19.080 --> 0:15:22.360 Twalie I Ceea Cousmanship China, with the stock up more 0:15:22.400 --> 0:15:25.000 than thirty percent. Now, thank you very much. Let's get 0:15:25.000 --> 0:15:27.000 over it to New York. K Webloomberg's you hire and 0:15:27.240 --> 0:15:30.440 is standing by with some news You hire, Hi Ed. 0:15:30.640 --> 0:15:32.240 It's time now for talking tech. 0:15:32.320 --> 0:15:35.160 First up s k Heinez is leading a record eighty 0:15:35.200 --> 0:15:38.720 three billion dollars in share sales by Asian firms, making 0:15:38.800 --> 0:15:42.000 July the highest ever monthly haul for firms in the 0:15:42.080 --> 0:15:46.280 Asia Pacific region, and the South Korean company isn't slowing 0:15:46.320 --> 0:15:49.400 down with plans to spend thirty eight billion dollars to 0:15:49.480 --> 0:15:53.600 expand it's chip making facilities in the country. Plus, AMD 0:15:53.760 --> 0:15:57.280 has plans to purchase Canadian startup talents to build new 0:15:57.320 --> 0:16:00.960 AI chips, expanding the company's chipbobrings is it tries to 0:16:01.080 --> 0:16:05.320 differentiate itself from competitor Nvidia, tell us this technology is 0:16:05.440 --> 0:16:09.040 used in chips that handle inference and says that hardwiring 0:16:09.040 --> 0:16:14.320 AI models into chips can create more efficient machinery and moonshots. 0:16:14.360 --> 0:16:17.280 Kimmy K three is the latest AI model to escape 0:16:17.320 --> 0:16:20.440 a sandbox in a third party test. That's according to 0:16:20.520 --> 0:16:25.560 research firm Frontier Security. Kimmy K three joins the life 0:16:25.600 --> 0:16:29.200 of models from Anthropic, Open Ai, and Meta, adding to 0:16:29.280 --> 0:16:33.240 concerns on how well these AI companies can control. 0:16:32.960 --> 0:16:36.680 Your technology ed Thank you Hira, and happy Friday to 0:16:36.760 --> 0:16:39.240 you now coming up. Look at shares of Take two 0:16:39.400 --> 0:16:42.480 up around three to four percent after the company reported 0:16:42.520 --> 0:16:47.160 earnings with lies on the anticipated release of Grand theft 0:16:47.200 --> 0:16:48.560 Auto six. 0:16:49.320 --> 0:16:51.040 Discuss that next this is Bloomberg Tech. 0:17:05.960 --> 0:17:08.640 Open AI's first consumer. 0:17:08.119 --> 0:17:10.280 Device will look like a doughnut. 0:17:10.640 --> 0:17:14.240 According to sources, The ai smart speakers designed to be 0:17:14.280 --> 0:17:17.320 carried around the home with one hand and is slated 0:17:17.359 --> 0:17:20.680 to be released next year. The device will be positioned 0:17:20.920 --> 0:17:24.159 as an AI first computer that can help users get 0:17:24.200 --> 0:17:27.600 things done and will compete with moving and be complete 0:17:27.920 --> 0:17:32.200 with moving parts that help give it personality, and is 0:17:32.400 --> 0:17:35.880 likely to cost more than three hundred dollars. Those sources say, 0:17:36.200 --> 0:17:38.320 don't have a picture of it for you. I'm sure 0:17:38.320 --> 0:17:40.959 we will see one soon. Look at shares we take 0:17:41.000 --> 0:17:43.600 to Interactive up more than four percent now. The company 0:17:43.680 --> 0:17:47.479 posted first quarter bookings beading estimates at one point three 0:17:47.600 --> 0:17:51.719 nine billion, but two kept its four year forecasts below 0:17:51.760 --> 0:17:54.640 Wall Street expectations and trimmed its profit outlook. 0:17:54.680 --> 0:17:56.320 And of course, all. 0:17:56.119 --> 0:17:59.200 Eyes remain on the biggest release in the pipeline, Grand 0:17:59.240 --> 0:18:01.600 Theft Auto six joining us A. 0:18:01.680 --> 0:18:04.120 Bloomberg's Jason Schreier, I. 0:18:04.040 --> 0:18:07.800 Honestly kind of feel like we can part the performance 0:18:07.800 --> 0:18:11.000 in the court had gone and the kind of financial outlook. 0:18:11.320 --> 0:18:15.639 It is all about GTA. You have been talking to 0:18:15.680 --> 0:18:20.080 the company about that. They are signaling that the the 0:18:20.160 --> 0:18:24.359 pre demand tells us something that this is hasn't happened before. 0:18:25.720 --> 0:18:28.720 Yeah, investors, it's funny these these bookings and even an 0:18:28.800 --> 0:18:32.240 un revenue numbers beating missing estimates doesn't really matter. The 0:18:32.320 --> 0:18:35.200 number that investors really want to know is the number 0:18:35.280 --> 0:18:38.960 of pre orders that GTA six has right now, and 0:18:39.040 --> 0:18:42.879 TATO is not saying them. Take two has said that 0:18:43.160 --> 0:18:48.199 the number is unprecedented and exceptional and astounding. Those are 0:18:48.200 --> 0:18:51.080 all words of CEO strasdelnct Us. Yes, but they're not 0:18:51.119 --> 0:18:54.400 saying the exact numbers. So all eyes are on November 0:18:54.560 --> 0:18:58.560 nineteenth for the launch day and the final sales figure. 0:18:59.840 --> 0:19:02.600 The idea is that the world will have an expectation 0:19:02.680 --> 0:19:04.919 of what that number would be because we have a 0:19:04.920 --> 0:19:07.719 really good sense of what the prior GTA titles were 0:19:07.760 --> 0:19:11.400 able to achieve. Right, we know the date, but give 0:19:11.440 --> 0:19:13.879 us the kind of backstory of why it's taken us 0:19:13.920 --> 0:19:15.560 so long to get to GTA six. 0:19:16.800 --> 0:19:17.680 Yeah, a couple of things. 0:19:17.680 --> 0:19:20.120 So, GTA five, the last game in the series, came 0:19:20.119 --> 0:19:23.000 out in twenty thirteen and has since sold two hundred 0:19:23.000 --> 0:19:28.120 and thirty million copies. It did really well on launch day, 0:19:28.160 --> 0:19:30.800 but a lot of those sales have come in the 0:19:30.880 --> 0:19:33.240 year since then. It was really a long tail and 0:19:33.359 --> 0:19:37.240 unprecedented longtail for that game. And so the numbers that 0:19:37.280 --> 0:19:40.000 we're expecting here are going to be exponentially higher than 0:19:40.000 --> 0:19:42.520 the numbers we saw from GTA five on launch day 0:19:42.560 --> 0:19:46.920 because the series has gotten all that much bigger since then. 0:19:47.160 --> 0:19:49.119 As for why it's taken so long, this game has 0:19:49.119 --> 0:19:53.600 been in development for about eight years since the since 0:19:53.640 --> 0:19:56.520 the release of Red Dead Redemption two, which was Rockstar's 0:19:56.560 --> 0:20:00.399 previous game, And it's big, it's fast, it's got a 0:20:00.440 --> 0:20:03.159 lot going on. We'll find out more soon. And one 0:20:04.000 --> 0:20:06.719 another kind of date to watch if you're interested in 0:20:06.760 --> 0:20:09.880 Take two shares is August twenty seventh, which is when 0:20:10.160 --> 0:20:11.919 Rockstar and Take two has said they are going to 0:20:12.000 --> 0:20:16.320 show the first extended look at GTA six, meaning what 0:20:16.400 --> 0:20:18.600 it's actually going to look like and feel like to 0:20:18.760 --> 0:20:21.960 play the game rather than the kind of cinematic trailers 0:20:22.000 --> 0:20:23.040 that they've shown so far. 0:20:23.200 --> 0:20:25.320 And that's actually it's unprecedent. 0:20:25.359 --> 0:20:27.280 Another unprecedented thing is that it's going to be a 0:20:27.359 --> 0:20:31.040 Netflix exclusive. The gameplay is going to be released on 0:20:31.160 --> 0:20:34.080 Netflix six hours before increasing the rest of the Internet. 0:20:35.160 --> 0:20:37.800 Bloomberg, Jason Schreyer with all things GTA six, Thank you 0:20:37.920 --> 0:20:41.280 very much. Indeed, one other company out with earnings is Airbnb, 0:20:41.440 --> 0:20:44.560 and shares jumping by the most in sixteen months after 0:20:44.600 --> 0:20:47.919 the company boosted it's annual revenue forecast for a second 0:20:47.920 --> 0:20:51.000 time this year, citing robust demand in the US and 0:20:51.160 --> 0:20:54.639 also in Europe. Bloomberg, Natalie Luan is here, what do 0:20:54.640 --> 0:20:55.119 we need to know? 0:20:55.960 --> 0:21:00.520 Yeah, so Airbnb is seeing this really strong demand, especially 0:21:00.560 --> 0:21:04.560 from North America group travelers, really strong people of booking 0:21:04.760 --> 0:21:07.800 entire homes to go travel with friends, and you know, 0:21:07.880 --> 0:21:12.520 it's really contributing to this growth. Optimism that Airbnb is 0:21:12.560 --> 0:21:14.760 seeing is kind of a different story from last year 0:21:14.800 --> 0:21:18.280 where they would always call out that North America is 0:21:18.320 --> 0:21:21.240 sort of the drag on the business. And another thing 0:21:21.240 --> 0:21:23.600 to call out is, you know, this kind of optimism 0:21:23.680 --> 0:21:27.200 would bode well for a lot of Airbnb's new business 0:21:27.240 --> 0:21:31.000 initiatives like a la carte services like in home beauty 0:21:31.040 --> 0:21:33.919 appointments and grosser stocking, as well as their new you know, 0:21:34.560 --> 0:21:36.920 hotel booking initiative as well. 0:21:37.760 --> 0:21:41.040 So that's my question, what is Airbnb's technology story right 0:21:41.080 --> 0:21:43.440 because you have to look past it being a short 0:21:43.520 --> 0:21:45.840