1 00:00:01,440 --> 00:00:05,760 Speaker 1: From Marhart where Innovation, Money and Power Collie in Silicon 2 00:00:05,840 --> 00:00:06,720 Speaker 1: Vallet NBN. 3 00:00:07,080 --> 00:00:11,320 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 4 00:00:26,120 --> 00:00:28,360 Speaker 3: Live from Bloomberg's World headquarters in New York. I'm Caroline 5 00:00:28,400 --> 00:00:28,840 Speaker 3: High and i me. 6 00:00:28,880 --> 00:00:31,200 Speaker 4: Ladlow right next door. This is Bloomberg Technology. 7 00:00:31,240 --> 00:00:31,680 Speaker 5: Coming up. 8 00:00:31,760 --> 00:00:35,040 Speaker 3: Cisco buying Splunk and a twenty eight billion dollar deal 9 00:00:35,080 --> 00:00:36,600 Speaker 3: that pushes it into AI. 10 00:00:37,040 --> 00:00:38,639 Speaker 5: Will bring you the terms of the deal and what. 11 00:00:38,600 --> 00:00:39,960 Speaker 4: It means for em and A and from m and 12 00:00:40,000 --> 00:00:41,840 Speaker 4: A to IPOs, we'll get a read on the state 13 00:00:41,840 --> 00:00:44,839 Speaker 4: of the market with Jeff Thomas from NASDAK as companies 14 00:00:45,000 --> 00:00:46,480 Speaker 4: see their trading debut. 15 00:00:46,280 --> 00:00:47,960 Speaker 6: Pop begin to fade. 16 00:00:48,320 --> 00:00:50,480 Speaker 5: Plus, we'll bring you the latest in the media world. 17 00:00:50,600 --> 00:00:53,240 Speaker 5: Robert Murdoch steps down from the Fox and News Corp. 18 00:00:53,360 --> 00:00:56,000 Speaker 3: And writers and studios that are inching closer. 19 00:00:55,640 --> 00:00:56,120 Speaker 5: To a deal. 20 00:00:56,560 --> 00:00:58,960 Speaker 3: All that and so much more ahead, Let's bringing Jim Fish, 21 00:00:59,000 --> 00:01:01,040 Speaker 3: analyst of Pipe Sanla, who has a neutral rating on 22 00:01:01,080 --> 00:01:03,800 Speaker 3: Cisco fifty seven dollars price target and ultimately, is this 23 00:01:03,880 --> 00:01:05,560 Speaker 3: a good deal despite the amount that they're paying in 24 00:01:05,600 --> 00:01:07,160 Speaker 3: terms of premium? 25 00:01:07,560 --> 00:01:08,720 Speaker 7: Yeah, thanks for having me. 26 00:01:08,760 --> 00:01:14,479 Speaker 8: First off, Secondly on your question here, look Splunkhead been 27 00:01:15,200 --> 00:01:18,039 Speaker 8: a target for Cisco for a little while here Back 28 00:01:18,080 --> 00:01:21,320 Speaker 8: in January of twenty twenty two, it was rumored that 29 00:01:21,440 --> 00:01:25,520 Speaker 8: Cisco had made a offer at that point. Now today 30 00:01:25,560 --> 00:01:28,920 Speaker 8: you get the conclusion of that, or almost conclusion as 31 00:01:28,920 --> 00:01:32,160 Speaker 8: we work through a nine to twelve month deal cycle here. 32 00:01:32,040 --> 00:01:33,520 Speaker 7: On this one forward to close. 33 00:01:33,920 --> 00:01:36,479 Speaker 8: But this is the name that we have pointed out 34 00:01:36,520 --> 00:01:40,280 Speaker 8: for quite some time that is most strategic to Cisco 35 00:01:40,440 --> 00:01:43,039 Speaker 8: when you look at what Chuck Robbins and his team are. 36 00:01:42,920 --> 00:01:48,080 Speaker 7: Trying to do around AI cloud security, this one just 37 00:01:48,160 --> 00:01:48,920 Speaker 7: fits the bill. 38 00:01:49,040 --> 00:01:52,840 Speaker 8: It really merges that world between app experiences that they 39 00:01:52,880 --> 00:01:56,000 Speaker 8: call it with the security side and fills a big 40 00:01:56,040 --> 00:01:58,480 Speaker 8: hole in the security portfolio that we pointed out for 41 00:01:58,520 --> 00:02:02,880 Speaker 8: a long time in the security Incident and Event management 42 00:02:03,000 --> 00:02:06,600 Speaker 8: or SIM space. Splunks the big eight hundred pound gorilla 43 00:02:06,680 --> 00:02:09,200 Speaker 8: in that space, and it really is the backbone of 44 00:02:09,240 --> 00:02:12,800 Speaker 8: security operations centers, and Cisco really needed that kind of 45 00:02:12,840 --> 00:02:15,880 Speaker 8: backbone to really push the push the envelope a little 46 00:02:15,919 --> 00:02:18,720 Speaker 8: bit more on its security business that's really been lagging 47 00:02:18,760 --> 00:02:21,600 Speaker 8: against other security peers out there in terms of a 48 00:02:21,680 --> 00:02:22,080 Speaker 8: growth ring. 49 00:02:22,320 --> 00:02:25,120 Speaker 4: So Chuck Robins reckons this transaction is going to close 50 00:02:25,400 --> 00:02:27,679 Speaker 4: in nine to twelve months, and then Gary Steele, who 51 00:02:27,720 --> 00:02:30,760 Speaker 4: is the CEO of Splunk, is going to join the 52 00:02:30,760 --> 00:02:34,040 Speaker 4: executive team reporting to Chuck Robbins. You gave an excellent 53 00:02:34,120 --> 00:02:38,800 Speaker 4: explanation there of what Splunk brings to Cisco. Have a 54 00:02:38,840 --> 00:02:41,200 Speaker 4: second go at it from a layman's perspective. 55 00:02:42,080 --> 00:02:44,720 Speaker 6: What is Splunk? What are we talking about here? 56 00:02:45,480 --> 00:02:47,600 Speaker 7: Yeah, so gets back to actually the name of Spunk. 57 00:02:47,680 --> 00:02:52,000 Speaker 8: Really, what Splunk is named after is going splunking, which 58 00:02:52,040 --> 00:02:54,120 Speaker 8: is going cave diving, and in this case, it's going 59 00:02:54,160 --> 00:02:58,359 Speaker 8: after essentially data, trying to understand your data, being able. 60 00:02:58,160 --> 00:02:58,960 Speaker 7: To search through it. 61 00:02:59,080 --> 00:03:02,959 Speaker 8: So when you have a you know, breach for example, 62 00:03:03,080 --> 00:03:05,000 Speaker 8: that you don't know about, but you can kind of 63 00:03:05,000 --> 00:03:08,280 Speaker 8: search through all of your data with spunks tools and 64 00:03:08,400 --> 00:03:10,640 Speaker 8: be able to find you know what's actually going on 65 00:03:10,720 --> 00:03:13,080 Speaker 8: inside your environment, which is why it's so important for 66 00:03:13,160 --> 00:03:16,680 Speaker 8: your security operations center as well as for an instant 67 00:03:17,040 --> 00:03:20,960 Speaker 8: response and management perspective. And actually, while we talk about 68 00:03:21,000 --> 00:03:24,080 Speaker 8: Splunk as a security tool, its foundation was actually on 69 00:03:24,120 --> 00:03:28,040 Speaker 8: the IT operation side, in sort of the performance management. 70 00:03:28,160 --> 00:03:30,280 Speaker 7: So how is your network actually performing? 71 00:03:30,320 --> 00:03:34,000 Speaker 8: How how are your applications performing via on prem or 72 00:03:34,040 --> 00:03:37,000 Speaker 8: in the cloud as we shift to you know, a 73 00:03:37,080 --> 00:03:40,680 Speaker 8: nature AWS Google environment and being able to manage across 74 00:03:40,720 --> 00:03:43,520 Speaker 8: the entire environment, not just you know, on prem and 75 00:03:43,520 --> 00:03:45,440 Speaker 8: that's been a big shift for Spunk over the last 76 00:03:45,480 --> 00:03:45,920 Speaker 8: few years. 77 00:03:45,920 --> 00:03:46,119 Speaker 7: Here. 78 00:03:46,360 --> 00:03:48,920 Speaker 6: Yeah, I knew that, we knew that. I was just checking. 79 00:03:50,160 --> 00:03:50,360 Speaker 9: Jim. 80 00:03:50,440 --> 00:03:52,360 Speaker 7: We're a smart guy, So thank you. 81 00:03:53,280 --> 00:03:55,440 Speaker 5: I don't serve ability. 82 00:03:55,840 --> 00:03:56,560 Speaker 6: Let me just ask you this. 83 00:03:56,600 --> 00:03:58,280 Speaker 4: A regulator is going to let this one go through, 84 00:03:58,320 --> 00:03:59,920 Speaker 4: I said, Chuck thinks nine to twelve. 85 00:04:01,680 --> 00:04:03,480 Speaker 7: Yeah, it's a question we're getting this morning. 86 00:04:04,040 --> 00:04:07,080 Speaker 8: We're actually we cover VMware as well, and that's been 87 00:04:07,120 --> 00:04:10,320 Speaker 8: a fun one in terms of regulation. I'd argue a 88 00:04:10,440 --> 00:04:13,200 Speaker 8: longer time period on that one. Look, I think you're 89 00:04:13,240 --> 00:04:17,080 Speaker 8: starting to see things go through. Even of VMware size. 90 00:04:17,720 --> 00:04:21,320 Speaker 8: For Cisco and Splunk, there's a little bit of overlap 91 00:04:21,360 --> 00:04:24,719 Speaker 8: in terms of, for example, market share with the powerful 92 00:04:24,760 --> 00:04:28,560 Speaker 8: combination of app Dynamics, thousand Dies and now Spunk altogether, 93 00:04:29,720 --> 00:04:31,960 Speaker 8: but there really isn't much on the security side, and 94 00:04:32,320 --> 00:04:37,320 Speaker 8: so from the both the application experiences and the security businesses. 95 00:04:37,640 --> 00:04:40,360 Speaker 8: While Splunk is a decent sized i'm sorry one, while 96 00:04:40,440 --> 00:04:43,120 Speaker 8: Cisco is a decent sized player in each as well. Splunk, 97 00:04:44,160 --> 00:04:46,520 Speaker 8: you know, the two of them combined are really still 98 00:04:46,560 --> 00:04:49,960 Speaker 8: part of this really fragmented set of industries that there 99 00:04:49,960 --> 00:04:53,320 Speaker 8: really isn't the antitrust issue here in our. 100 00:04:53,320 --> 00:04:57,080 Speaker 3: View, What then, of the competitive landscape those that Splunk 101 00:04:57,240 --> 00:05:00,000 Speaker 3: was up against Data Dog based here in New York, 102 00:05:00,040 --> 00:05:02,320 Speaker 3: com thing in Dina Trace as well. Digital's actually under 103 00:05:02,320 --> 00:05:03,520 Speaker 3: pressure some three percent to day. 104 00:05:03,560 --> 00:05:04,760 Speaker 5: Does it not make it more attractive? 105 00:05:06,080 --> 00:05:08,640 Speaker 7: You know? It's interesting, right because M and A can 106 00:05:08,720 --> 00:05:09,680 Speaker 7: be disruptive to. 107 00:05:11,160 --> 00:05:15,520 Speaker 8: The business being bought and potentially act as a tailwind 108 00:05:15,800 --> 00:05:16,880 Speaker 8: for competitors. 109 00:05:17,520 --> 00:05:19,400 Speaker 7: Look, I don't cover Davia Dog. 110 00:05:19,440 --> 00:05:21,640 Speaker 8: That's carved by my peer, Rob Ewens, but you know, 111 00:05:21,720 --> 00:05:25,720 Speaker 8: David Dog itself has been doing good things in sort 112 00:05:25,760 --> 00:05:29,080 Speaker 8: of cloud observability and that's where essentially workloads are going 113 00:05:29,120 --> 00:05:32,960 Speaker 8: correct and is considered one of, if not the leaders, 114 00:05:32,960 --> 00:05:37,520 Speaker 8: in that observability space. But when you kind of stack 115 00:05:37,600 --> 00:05:40,840 Speaker 8: up what Splunk could do for Cisco, you know, it 116 00:05:40,880 --> 00:05:44,760 Speaker 8: does make Cisco a more relevant competitor in this space, 117 00:05:45,080 --> 00:05:48,840 Speaker 8: especially given Cisco has a huge reach, right and Gary 118 00:05:48,960 --> 00:05:51,120 Speaker 8: and Chuck talked about it on the call this morning, 119 00:05:51,160 --> 00:05:54,520 Speaker 8: where about two thirds of Spunk as domestic and a 120 00:05:54,560 --> 00:05:57,799 Speaker 8: third is international. Well, while Cisco has arguably the best 121 00:05:57,920 --> 00:06:01,520 Speaker 8: go to market program out there and can really penetrate 122 00:06:01,560 --> 00:06:05,719 Speaker 8: their roughly a million customers with splunks. 123 00:06:05,680 --> 00:06:08,760 Speaker 7: Offering, and so that could potentially box out a competitor. 124 00:06:09,040 --> 00:06:11,480 Speaker 4: When do you think about it, Jim Fish or Piper Sandler, 125 00:06:11,600 --> 00:06:13,280 Speaker 4: just not just so good on the deal, but also 126 00:06:13,320 --> 00:06:14,440 Speaker 4: where it fits in the landscape. 127 00:06:14,440 --> 00:06:16,320 Speaker 6: Also very kind about me, Thank you very much. 128 00:06:16,360 --> 00:06:18,159 Speaker 4: Now, coming up from the show, we're going to turn 129 00:06:18,160 --> 00:06:21,279 Speaker 4: from M and A to IPO's. Jeff Thomas, Executive vice 130 00:06:21,320 --> 00:06:24,599 Speaker 4: president of nasdaq's Corporate Platforms, is joining us next character. 131 00:06:24,880 --> 00:06:27,240 Speaker 3: Meanwhile, look, let's just get to check in on how 132 00:06:27,240 --> 00:06:30,640 Speaker 3: these IPOs are the week affairing, because instagrat actually it's 133 00:06:30,680 --> 00:06:33,280 Speaker 3: still clinging to a gain over the last three days, 134 00:06:33,320 --> 00:06:35,760 Speaker 3: but coming off well from that pop after. 135 00:06:35,520 --> 00:06:36,480 Speaker 5: Its initial IPO. 136 00:06:36,839 --> 00:06:40,119 Speaker 3: We're currently training at thirty spot zero five, a tiny 137 00:06:40,200 --> 00:06:42,600 Speaker 3: gain on the thirty dollars pricing, but is that we 138 00:06:42,760 --> 00:06:44,960 Speaker 3: know remaining open Look up an eye for you from 139 00:06:45,000 --> 00:06:45,360 Speaker 3: New York. 140 00:06:45,440 --> 00:06:46,599 Speaker 5: This's a Bluemberg technology. 141 00:06:57,880 --> 00:07:00,960 Speaker 3: We're just taking you over to a either then happening 142 00:07:01,000 --> 00:07:03,320 Speaker 3: the Bloomberg Global Credit Form. It's not a way in London. 143 00:07:03,520 --> 00:07:06,720 Speaker 3: You've got panels and KKR, Apollo, Barclays. They're all discussing 144 00:07:06,839 --> 00:07:09,280 Speaker 3: at this very moment the rise of private credit. And 145 00:07:09,360 --> 00:07:10,720 Speaker 3: if you want to be digging into that a little 146 00:07:10,720 --> 00:07:11,880 Speaker 3: bit more, you can go to Life, go on a 147 00:07:11,880 --> 00:07:15,280 Speaker 3: Bloomberg terminal. But the credit more broadly ed is important 148 00:07:15,280 --> 00:07:17,440 Speaker 3: to our viewers in technology, whether it happens to be 149 00:07:17,480 --> 00:07:19,600 Speaker 3: the public companies seeking to raise funds to the bond 150 00:07:19,640 --> 00:07:20,880 Speaker 3: market and indeed the private. 151 00:07:20,720 --> 00:07:21,200 Speaker 6: Co yeh lok. 152 00:07:21,200 --> 00:07:24,160 Speaker 4: Cost of capital is important to any technology company. It's 153 00:07:24,200 --> 00:07:25,880 Speaker 4: a part of the balance Sheeper. Think back to May 154 00:07:26,280 --> 00:07:28,720 Speaker 4: Apple and Meta returned to the blue chip usbon market, 155 00:07:28,760 --> 00:07:29,800 Speaker 4: we get super excited. 156 00:07:30,200 --> 00:07:31,200 Speaker 6: Haven't heard anything since. 157 00:07:31,400 --> 00:07:34,080 Speaker 4: So I just wanted to remind our audience, like tech, 158 00:07:34,080 --> 00:07:36,280 Speaker 4: companies in debt pay close attention. 159 00:07:36,040 --> 00:07:38,960 Speaker 3: Particularly when rates from the treasury perspective are on the rise, 160 00:07:38,960 --> 00:07:42,000 Speaker 3: and whether in Central Bank really starts to impact the 161 00:07:42,040 --> 00:07:44,320 Speaker 3: desire there. Meanwhile, I mean this all comes in a 162 00:07:44,320 --> 00:07:46,600 Speaker 3: global narrative when we're thinking of the health of the 163 00:07:46,720 --> 00:07:49,840 Speaker 3: twenty twenty three IPO landscape. At the moment, we're facing 164 00:07:49,920 --> 00:07:53,200 Speaker 3: uncertainty after Armen in Stacart reverse gains after popping during 165 00:07:53,240 --> 00:07:53,840 Speaker 3: their debut. 166 00:07:54,160 --> 00:07:56,239 Speaker 5: So let's get a little tape new Egsaba Girl Digital. 167 00:07:56,280 --> 00:07:57,880 Speaker 5: He's here for more a weldcare line. 168 00:07:57,920 --> 00:08:00,160 Speaker 10: It is really pretty interesting here because we did, of 169 00:08:00,200 --> 00:08:03,320 Speaker 10: course have the big IPO pops last week for ARM, 170 00:08:03,360 --> 00:08:06,800 Speaker 10: and then earlier this week for both Instacart and Kleviyo. 171 00:08:06,960 --> 00:08:10,120 Speaker 10: Here's ARM, though, giving back its first twenty four percent 172 00:08:10,200 --> 00:08:13,880 Speaker 10: gain that first day pop down each subsequent day overall 173 00:08:14,200 --> 00:08:16,360 Speaker 10: down about one point seven percent. So what really raises 174 00:08:16,400 --> 00:08:18,760 Speaker 10: the question begs the question of whether or not this 175 00:08:18,880 --> 00:08:21,040 Speaker 10: IPO window is healthy. In fact, if we take a 176 00:08:21,080 --> 00:08:23,320 Speaker 10: look at both ARM and cart, we are going to 177 00:08:23,400 --> 00:08:25,520 Speaker 10: see over this time period there's the ARM loss, but 178 00:08:25,600 --> 00:08:28,240 Speaker 10: KRT actually a small gain here a four tens of 179 00:08:28,280 --> 00:08:29,840 Speaker 10: one percent, not so shabby. 180 00:08:30,040 --> 00:08:31,760 Speaker 5: But what comes to mind for me why I. 181 00:08:31,720 --> 00:08:34,319 Speaker 10: Was initially questioning whether or not these pops were good enough. 182 00:08:34,360 --> 00:08:36,200 Speaker 10: If we take a look at what happened back in 183 00:08:36,240 --> 00:08:39,120 Speaker 10: the pandemic, we of course had Airbnb up one hundred 184 00:08:39,120 --> 00:08:42,280 Speaker 10: and thirteen percent, a firm up sixty four percent, Bumble 185 00:08:42,400 --> 00:08:44,679 Speaker 10: up almost one hundred percent, and then posh up one 186 00:08:44,720 --> 00:08:45,720 Speaker 10: hundred and forty two percent. 187 00:08:45,920 --> 00:08:49,360 Speaker 5: So the pops that we've seen over the last two weeks. 188 00:08:48,880 --> 00:08:53,080 Speaker 10: Not quite as strong. Have we greased the IPO window. 189 00:08:53,160 --> 00:08:55,920 Speaker 10: It's not entirely clear at this point. More needs to 190 00:08:55,920 --> 00:08:56,560 Speaker 10: be seen. 191 00:08:56,440 --> 00:08:56,880 Speaker 11: For sure. 192 00:08:57,120 --> 00:09:00,600 Speaker 4: You know Shnalibus was on the show yesterday lamenting how 193 00:09:00,840 --> 00:09:03,040 Speaker 4: that's it now? All the IPOs ha done. We've covered 194 00:09:03,080 --> 00:09:05,440 Speaker 4: them to death. There won't be any tillbuck and stock. 195 00:09:05,480 --> 00:09:07,920 Speaker 4: And she's really sad about it. That's not quite true, though, 196 00:09:07,960 --> 00:09:08,520 Speaker 4: is it abby? 197 00:09:08,600 --> 00:09:10,839 Speaker 5: Yeah, we to be seen. It's good. 198 00:09:10,840 --> 00:09:13,000 Speaker 10: It's going to have a lot to do with this macro. 199 00:09:13,120 --> 00:09:15,240 Speaker 10: I mean, the macro environment right now relative to the 200 00:09:15,240 --> 00:09:16,560 Speaker 10: FED is not so great, and it's. 201 00:09:16,480 --> 00:09:17,160 Speaker 5: Not also bad. 202 00:09:17,200 --> 00:09:19,040 Speaker 10: Take a look at Clavio still holding on to a 203 00:09:19,040 --> 00:09:20,720 Speaker 10: gain of five point three percent. And I would also 204 00:09:20,800 --> 00:09:23,199 Speaker 10: point to back in the day there was a company 205 00:09:23,200 --> 00:09:25,760 Speaker 10: that ipoed, and in the first couple of months we 206 00:09:25,880 --> 00:09:30,040 Speaker 10: go into the Bloomberg terminal, this stock absolutely tanked down 207 00:09:30,160 --> 00:09:32,800 Speaker 10: you can see here, down more than fifty percent of 208 00:09:32,840 --> 00:09:35,080 Speaker 10: those couple of months. It came back in a big, 209 00:09:35,120 --> 00:09:37,120 Speaker 10: big way, though, And at this point is that more 210 00:09:37,120 --> 00:09:39,880 Speaker 10: than seven hundred percent since that ipo? Any any takers 211 00:09:39,880 --> 00:09:42,280 Speaker 10: on what this is and why these IPOs right now? 212 00:09:42,360 --> 00:09:43,360 Speaker 5: Maybe we shouldn't bring to me. 213 00:09:43,520 --> 00:09:46,040 Speaker 6: It wasn't around then Okay. 214 00:09:45,840 --> 00:09:47,720 Speaker 5: So it was Meta Facebook. 215 00:09:48,240 --> 00:09:50,800 Speaker 4: Oh yeah, so previously known as Facebook. 216 00:09:50,840 --> 00:09:53,360 Speaker 10: Yes, previously known as Facebook at that time had a 217 00:09:53,480 --> 00:09:56,760 Speaker 10: very very difficult first couple of months. But if we 218 00:09:56,840 --> 00:09:59,040 Speaker 10: take a look at what Facebook has done, Meta has 219 00:09:59,080 --> 00:10:02,319 Speaker 10: done since that, I po, well, not so shabby at all, 220 00:10:02,400 --> 00:10:04,280 Speaker 10: especially given last year's big plunge. 221 00:10:04,320 --> 00:10:05,240 Speaker 5: It's really come back. 222 00:10:05,520 --> 00:10:07,480 Speaker 10: So you know, it's just too early to say what's 223 00:10:07,480 --> 00:10:08,679 Speaker 10: going on with these IPOs A bit. 224 00:10:08,760 --> 00:10:11,559 Speaker 4: That's why people say I'm a long term investor. 225 00:10:11,840 --> 00:10:14,080 Speaker 10: Yes, that is a that is a perfect chart for 226 00:10:14,240 --> 00:10:16,560 Speaker 10: the idea of a long term investor, not a trader. 227 00:10:16,679 --> 00:10:21,439 Speaker 4: Bloomberg's Abagail do Little the b chartress name on point. 228 00:10:21,520 --> 00:10:22,080 Speaker 6: Thank you so much. 229 00:10:22,120 --> 00:10:24,360 Speaker 4: Okay, let's stick with the IPO market and bring in 230 00:10:24,360 --> 00:10:28,320 Speaker 4: our next guest. It has been a busy few days, 231 00:10:28,440 --> 00:10:32,000 Speaker 4: right carro with three listing, some on the Nasdaq, some 232 00:10:32,080 --> 00:10:34,360 Speaker 4: on the New York Stock Exchange. Let's go to the 233 00:10:34,440 --> 00:10:36,640 Speaker 4: Nasdack side of this story and bring in Jeff Thomas. 234 00:10:36,679 --> 00:10:40,120 Speaker 4: And Jeff I want to start by asking you, you know, 235 00:10:40,240 --> 00:10:42,920 Speaker 4: we say here on the Bloomberg Technology Show, the euphoria 236 00:10:42,960 --> 00:10:46,600 Speaker 4: of the IPO winding opening up was short lived. Is 237 00:10:46,600 --> 00:10:48,720 Speaker 4: that your conclusion as well. 238 00:10:50,520 --> 00:10:52,640 Speaker 2: I think, you know, companies look at the IPO as 239 00:10:52,679 --> 00:10:53,440 Speaker 2: a moment in time. 240 00:10:53,520 --> 00:10:54,720 Speaker 7: It's a financing event. 241 00:10:54,880 --> 00:10:58,440 Speaker 2: It creates great opportunities for liquidity for their shareholders, creates 242 00:10:58,440 --> 00:11:01,200 Speaker 2: an acquisition currency by their stock. So I don't think 243 00:11:01,200 --> 00:11:03,199 Speaker 2: they get too hung up on exactly how their stocks 244 00:11:03,240 --> 00:11:05,040 Speaker 2: trading day day to day. If you look at what's 245 00:11:05,040 --> 00:11:06,840 Speaker 2: happening this week, you know, we had kind of a 246 00:11:06,880 --> 00:11:10,360 Speaker 2: hawkish pause by the Fed yesterday where again they paused 247 00:11:10,440 --> 00:11:13,120 Speaker 2: rates but had some hawkish overtones. So of course that's 248 00:11:13,200 --> 00:11:15,560 Speaker 2: going to drive them macro. That's going to drive some 249 00:11:15,600 --> 00:11:17,439 Speaker 2: of these stocks. But when you look at the pipeline 250 00:11:17,440 --> 00:11:20,040 Speaker 2: that we've got with some great companies lined up to 251 00:11:20,080 --> 00:11:21,959 Speaker 2: get out to the market both in Q four and 252 00:11:22,040 --> 00:11:24,480 Speaker 2: a really strong pipeline in the first half of next year, 253 00:11:24,679 --> 00:11:26,840 Speaker 2: I think there's still a lot of reasons to be optimistic. 254 00:11:26,960 --> 00:11:30,440 Speaker 2: The VIX continues to be relatively low, indices are still 255 00:11:30,760 --> 00:11:33,280 Speaker 2: well up for the year, and I think companies that 256 00:11:33,360 --> 00:11:36,200 Speaker 2: raised capital back in twenty twenty and twenty twenty one 257 00:11:36,840 --> 00:11:39,559 Speaker 2: i'll really some pretty healthy valuations. They're going to need 258 00:11:39,800 --> 00:11:42,040 Speaker 2: to go back and raise another round of capital, and 259 00:11:42,080 --> 00:11:43,600 Speaker 2: so it'll be a choice do they want to raise 260 00:11:43,640 --> 00:11:46,520 Speaker 2: that capital privately or do they want to tap the 261 00:11:46,520 --> 00:11:48,520 Speaker 2: public markets. And I think there's a lot of reasons 262 00:11:48,559 --> 00:11:50,520 Speaker 2: to expect that many of them will come to the 263 00:11:50,520 --> 00:11:51,440 Speaker 2: public markets. 264 00:11:51,640 --> 00:11:54,520 Speaker 3: Speaking to your colleague Karen last week on the day 265 00:11:54,559 --> 00:11:56,560 Speaker 3: of the arm listing, Jeff, and when you're looking at 266 00:11:56,600 --> 00:11:59,400 Speaker 3: one hundred and fifty seven active s ones or f 267 00:11:59,480 --> 00:12:02,839 Speaker 3: one file, how many of those companies that are eyeing 268 00:12:02,840 --> 00:12:04,720 Speaker 3: the markets are going to have to use the play 269 00:12:04,760 --> 00:12:08,520 Speaker 3: But we've just seen Cornerstone Investors Limited supply to ensure 270 00:12:08,520 --> 00:12:11,400 Speaker 3: you get that initial pop, given well, Instacata is on 271 00:12:11,440 --> 00:12:12,280 Speaker 3: the downside already. 272 00:12:13,600 --> 00:12:15,640 Speaker 2: Well, look, I think it's all about how you want 273 00:12:15,640 --> 00:12:17,959 Speaker 2: to build your book. Companies are always going to want 274 00:12:18,000 --> 00:12:20,480 Speaker 2: to have those long term anchor investors. There's always going 275 00:12:20,520 --> 00:12:22,960 Speaker 2: to be room for some companies that or some investors 276 00:12:22,960 --> 00:12:24,760 Speaker 2: that are going to be short term in nature. 277 00:12:25,000 --> 00:12:26,400 Speaker 7: And that's because, honestly. 278 00:12:26,200 --> 00:12:28,160 Speaker 2: When you look at the opening cross where we're bringing 279 00:12:28,160 --> 00:12:31,240 Speaker 2: together buyers and sellers for that all important first trade 280 00:12:31,280 --> 00:12:34,079 Speaker 2: through our technology called the IPO Book Viewer, the only 281 00:12:34,120 --> 00:12:36,600 Speaker 2: people that can sell into that transaction are the people 282 00:12:36,600 --> 00:12:38,840 Speaker 2: that got shares on the IPO. So there's of course 283 00:12:38,880 --> 00:12:40,800 Speaker 2: going to be buyers that got fewer shares than they wanted. 284 00:12:40,840 --> 00:12:42,120 Speaker 2: Those are going to be the ones that are looking 285 00:12:42,160 --> 00:12:44,280 Speaker 2: to acquire more shares, And then you've got to have 286 00:12:44,320 --> 00:12:46,320 Speaker 2: some sellers in there as well. That's why we see 287 00:12:46,320 --> 00:12:49,400 Speaker 2: the stabilization. A agent sometimes taking an hour to even 288 00:12:49,440 --> 00:12:51,320 Speaker 2: three hours to open these stocks because a lot of 289 00:12:51,320 --> 00:12:53,200 Speaker 2: times it's having to flush out the sellers and find 290 00:12:53,200 --> 00:12:56,120 Speaker 2: people that are looking to unload the stock in addition 291 00:12:56,160 --> 00:12:58,120 Speaker 2: to all the long term shareholders that they bring in 292 00:12:58,160 --> 00:12:58,800 Speaker 2: through the IPO. 293 00:12:59,040 --> 00:13:00,800 Speaker 3: Yeah, that was a key no hour that we're talking 294 00:13:01,040 --> 00:13:03,520 Speaker 3: well this time last week around on Jeff. I'm interested 295 00:13:03,559 --> 00:13:05,120 Speaker 3: there for as to who's coming in to want to 296 00:13:05,120 --> 00:13:07,760 Speaker 3: be that demand, that marginal purchaser. Is it we're getting 297 00:13:07,760 --> 00:13:09,760 Speaker 3: more retail interest? Does it largely tend to be the 298 00:13:09,760 --> 00:13:11,840 Speaker 3: institutions that are willing to take the risk right now? 299 00:13:12,760 --> 00:13:15,439 Speaker 2: Yeah, I think it's really the institutional investors that are 300 00:13:15,440 --> 00:13:17,520 Speaker 2: going to be the major major. 301 00:13:17,240 --> 00:13:18,440 Speaker 7: Buyers of IPOs. 302 00:13:18,760 --> 00:13:20,319 Speaker 2: You know, you kind of look at how the class 303 00:13:20,360 --> 00:13:23,480 Speaker 2: of twenty twenty and twenty twenty one perform. Obviously a 304 00:13:23,520 --> 00:13:25,080 Speaker 2: lot of those didn't turn out the way that the 305 00:13:25,080 --> 00:13:28,400 Speaker 2: investors were hoping to Now you come into this year again, 306 00:13:28,440 --> 00:13:31,040 Speaker 2: the indices are up, the volatility is low. They're going 307 00:13:31,080 --> 00:13:32,959 Speaker 2: to be looking for ways to differentiate, and that means 308 00:13:32,960 --> 00:13:34,920 Speaker 2: they're going to have to take some risks in terms 309 00:13:34,960 --> 00:13:36,800 Speaker 2: of some new issues. So we see a lot of 310 00:13:36,800 --> 00:13:38,760 Speaker 2: demand on the buy side. I think, really what it is, 311 00:13:38,800 --> 00:13:41,440 Speaker 2: it's the companies coming to market, the banker's kind of 312 00:13:41,520 --> 00:13:45,160 Speaker 2: adjusting the valuations to match the expectations of the market, 313 00:13:45,360 --> 00:13:48,559 Speaker 2: and of course that all important narrative around profitable growth 314 00:13:48,559 --> 00:13:50,120 Speaker 2: and not just growth at all costs. 315 00:13:50,440 --> 00:13:51,520 Speaker 4: You know, I want to go back to something that 316 00:13:51,559 --> 00:13:53,920 Speaker 4: Caroline pointed out that if there is anything in common 317 00:13:53,960 --> 00:13:57,240 Speaker 4: across the last week, it was the Cornerstone investor the 318 00:13:57,320 --> 00:14:00,480 Speaker 4: small flow. But I get what you just said about 319 00:14:01,040 --> 00:14:03,440 Speaker 4: the buyers, But these some of these IPOs were like 320 00:14:03,480 --> 00:14:07,120 Speaker 4: ten x oversubscribed. Why is there not the same tenex 321 00:14:07,840 --> 00:14:09,840 Speaker 4: demand three days of trading in. 322 00:14:11,480 --> 00:14:13,240 Speaker 2: You know, I think there's always going to be buyers 323 00:14:13,280 --> 00:14:15,560 Speaker 2: at different price levels. And again, what you have to 324 00:14:15,600 --> 00:14:18,280 Speaker 2: remember here is that companies are laying out their vision 325 00:14:18,360 --> 00:14:20,920 Speaker 2: for the future, that they're saying, here's where we can get 326 00:14:20,920 --> 00:14:23,720 Speaker 2: to in terms of revenue, in terms of earnings, and 327 00:14:23,760 --> 00:14:25,560 Speaker 2: so the investors are going to be watching not just 328 00:14:25,600 --> 00:14:27,640 Speaker 2: in the first few days after the IPO, but. 329 00:14:27,640 --> 00:14:28,800 Speaker 7: The first few quarters. 330 00:14:28,920 --> 00:14:30,960 Speaker 2: And that's really what's going to determine the success of 331 00:14:31,000 --> 00:14:33,400 Speaker 2: these companies is can they come out of the gates strong, 332 00:14:33,800 --> 00:14:35,840 Speaker 2: can they hit their numbers in the first few quarters. 333 00:14:36,000 --> 00:14:38,560 Speaker 2: And I think that's really what's going to tell the 334 00:14:38,560 --> 00:14:40,800 Speaker 2: story IPO market versus the first few days of trading. 335 00:14:41,040 --> 00:14:44,360 Speaker 3: We were just talking about long term investment THESS following 336 00:14:44,360 --> 00:14:46,880 Speaker 3: on from the Messa listing years and years ago. Jeff Thomas, 337 00:14:46,880 --> 00:14:48,560 Speaker 3: and we thank you so much, executive vice president of 338 00:14:48,640 --> 00:14:56,600 Speaker 3: Nasdak's Corporate Platforms. 339 00:14:58,080 --> 00:14:59,080 Speaker 6: Right time for talking tech. 340 00:14:59,120 --> 00:15:02,720 Speaker 4: First off, Japanese electronics company Toshiba is clearing. 341 00:15:02,440 --> 00:15:03,920 Speaker 6: A new path to go private. 342 00:15:03,960 --> 00:15:07,320 Speaker 4: It received a thirteen point five billion dollar buyout from 343 00:15:07,360 --> 00:15:10,880 Speaker 4: the Japan Industrial Partner's private equity fund, which now holds 344 00:15:10,880 --> 00:15:13,040 Speaker 4: nearly eighty percent of all the company's shares. 345 00:15:13,040 --> 00:15:14,040 Speaker 6: The deal pays the way. 346 00:15:13,880 --> 00:15:16,880 Speaker 4: For the fund to squeeze out the remaining shareholders and 347 00:15:16,920 --> 00:15:20,200 Speaker 4: take full control of the company. And Google's considering dropping 348 00:15:20,240 --> 00:15:23,160 Speaker 4: chip maker Broadcom as a supplier of AI chips as 349 00:15:23,200 --> 00:15:26,360 Speaker 4: soon as twenty twenty seven. That's according to report from 350 00:15:26,400 --> 00:15:29,400 Speaker 4: The Information. Apparently, Google executives has set out a goal 351 00:15:29,480 --> 00:15:32,720 Speaker 4: earlier this year to move away from Broadcom after a 352 00:15:32,760 --> 00:15:35,480 Speaker 4: standoff over the cost of its chips. However, in the 353 00:15:35,560 --> 00:15:38,520 Speaker 4: last few minutes, Google has just issued a statement saying 354 00:15:38,760 --> 00:15:42,160 Speaker 4: it sees quote no change in its relationship with Broadcon. 355 00:15:42,360 --> 00:15:45,640 Speaker 4: Broadcompared some of his stock declients plus in Video is 356 00:15:45,640 --> 00:15:49,000 Speaker 4: betting on India's potential to become a key global market 357 00:15:49,080 --> 00:15:51,840 Speaker 4: for AI. During a trip to the country earlier this month, 358 00:15:51,920 --> 00:15:55,520 Speaker 4: CEO Jensen Hwang visited multiple cities and met with leaders, 359 00:15:55,560 --> 00:15:58,160 Speaker 4: including Prime Minister Mody Caroline. 360 00:15:57,840 --> 00:15:59,120 Speaker 5: Fascinating global perspective. 361 00:15:59,120 --> 00:16:00,680 Speaker 3: Meanwhile, I mean, let's just stick on the world of 362 00:16:00,760 --> 00:16:03,720 Speaker 3: artificial intelligence, because this week we've had so much Amazon, 363 00:16:03,800 --> 00:16:08,119 Speaker 3: Google both integrating more generative AI products into their offerings. 364 00:16:08,320 --> 00:16:10,480 Speaker 5: Well, today we've got some similar news out of Microsoft. 365 00:16:10,560 --> 00:16:13,240 Speaker 3: The company will start rolling out as AI Assistant from 366 00:16:13,240 --> 00:16:16,440 Speaker 3: Windows as soon as Tuesday. Will be widely available in 367 00:16:16,640 --> 00:16:19,760 Speaker 3: office apps starting November the first This is for corporate customers. 368 00:16:19,960 --> 00:16:22,560 Speaker 3: We're going to be bringing in now Rishid Juluria, it's 369 00:16:22,560 --> 00:16:25,560 Speaker 3: managing director of Software Equitan Research over at RBC Capital Markets. 370 00:16:25,720 --> 00:16:27,880 Speaker 3: Currently on an outform rating on the shares of Microsoft. 371 00:16:27,960 --> 00:16:30,360 Speaker 3: And what is this to show you about the ability 372 00:16:30,400 --> 00:16:33,920 Speaker 3: to integrate underlying technology largely coming from open AI that 373 00:16:34,120 --> 00:16:36,440 Speaker 3: quickly into its own product offerings. 374 00:16:37,560 --> 00:16:39,040 Speaker 12: Yeah, and thanks so much for having me. Look. 375 00:16:39,040 --> 00:16:40,520 Speaker 13: I think this shows us a couple of things, right. 376 00:16:40,560 --> 00:16:43,880 Speaker 13: It shows us that Microsoft isn't selling vaporware. The fact 377 00:16:43,880 --> 00:16:47,760 Speaker 13: that there's a timeline on getting Windows Copilot out, that's 378 00:16:47,840 --> 00:16:50,480 Speaker 13: as you mentioned in five days. The fact that we're 379 00:16:50,480 --> 00:16:54,240 Speaker 13: talking forty days until Office U sixty five copilot comes out. 380 00:16:54,720 --> 00:16:57,480 Speaker 13: This is incredible timing and contrast that with what we 381 00:16:57,520 --> 00:17:00,360 Speaker 13: see alswhere and enterprise software micros off. 382 00:17:00,240 --> 00:17:01,840 Speaker 12: Is clearly boo moving really quickly. 383 00:17:02,360 --> 00:17:04,880 Speaker 13: What I think is two things that really come out 384 00:17:04,880 --> 00:17:07,560 Speaker 13: to this for me. Number one is Microsoft is actually 385 00:17:07,560 --> 00:17:11,320 Speaker 13: integrating all of these aspects. So your Office rough cty 386 00:17:11,320 --> 00:17:14,760 Speaker 13: five copilot talks to your Windows Copilot, talks to your browser, 387 00:17:14,800 --> 00:17:17,440 Speaker 13: talks to your Bing copilot. So there's actually a very 388 00:17:17,480 --> 00:17:21,400 Speaker 13: integrated generative AI experience across the entire Microsoft stack, which 389 00:17:21,400 --> 00:17:24,600 Speaker 13: I think is incredible and really showcases the portfolio approach 390 00:17:24,640 --> 00:17:27,720 Speaker 13: Microsoft has. The second thing is, you know, the question 391 00:17:27,760 --> 00:17:29,560 Speaker 13: we have to ask is how is Microsoft able to 392 00:17:29,560 --> 00:17:33,280 Speaker 13: move soft fast. Remember, they have a huge headstart versus 393 00:17:33,280 --> 00:17:36,040 Speaker 13: anyone else because they invested in open AI going back 394 00:17:36,080 --> 00:17:37,000 Speaker 13: to twenty nineteen. 395 00:17:37,400 --> 00:17:40,280 Speaker 12: And you know, Microsoft was, you know, deeply. 396 00:17:40,000 --> 00:17:44,239 Speaker 13: Thinking about generative AI long before chat tpt became a 397 00:17:44,240 --> 00:17:46,480 Speaker 13: household name, you know, almost about a year ago. 398 00:17:46,800 --> 00:17:50,680 Speaker 4: They Richie You pointed out they're integrating this into existing platforms. 399 00:17:50,720 --> 00:17:54,960 Speaker 4: And Microsoft has always been really good at selling software 400 00:17:55,040 --> 00:17:57,560 Speaker 4: that loads of others give away for free. So my 401 00:17:57,640 --> 00:18:00,360 Speaker 4: question is do they grow sales by doing this, by 402 00:18:00,359 --> 00:18:01,400 Speaker 4: this investment in AI. 403 00:18:03,200 --> 00:18:05,000 Speaker 12: I think the answer to that is absolutely yes. 404 00:18:05,080 --> 00:18:07,360 Speaker 13: There's going to be certain areas where you know, they're 405 00:18:07,359 --> 00:18:09,720 Speaker 13: not going to directly charge for generative AI. It's more 406 00:18:09,760 --> 00:18:12,480 Speaker 13: going to be about gaining market share, like on the 407 00:18:12,560 --> 00:18:15,920 Speaker 13: dynamic stack, right. But if you think about Microsoft through 408 00:18:15,920 --> 00:18:18,800 Speaker 13: sixty five copilot, that is something that I believe they 409 00:18:18,840 --> 00:18:22,240 Speaker 13: were distinctly charged for a lot of these other open 410 00:18:22,240 --> 00:18:26,200 Speaker 13: AI services, especially built on Azure, they get monetized indirectly 411 00:18:26,240 --> 00:18:30,720 Speaker 13: through underlying stories and consumption because it's on a consumption model. 412 00:18:31,040 --> 00:18:34,560 Speaker 13: So I absolutely think this translates into better revenue numbers 413 00:18:34,560 --> 00:18:37,120 Speaker 13: for Microsoft. And we're already seeing that, right. I mean, 414 00:18:37,560 --> 00:18:39,240 Speaker 13: as much as we can talk about how jen AAI 415 00:18:39,320 --> 00:18:42,920 Speaker 13: is still really early. Remember Microsoft is already doing more 416 00:18:42,960 --> 00:18:46,200 Speaker 13: than half a billion dollars of generative AI revenue two 417 00:18:46,280 --> 00:18:48,960 Speaker 13: quarters after launching this, and that number is probably going 418 00:18:49,040 --> 00:18:52,080 Speaker 13: to get to you know, two five ten billion dollars 419 00:18:52,119 --> 00:18:52,880 Speaker 13: before we know it. 420 00:18:53,200 --> 00:18:55,440 Speaker 3: And you heard really talking about how it's the second 421 00:18:55,480 --> 00:18:57,080 Speaker 3: half of their fiscal year whether this is going to 422 00:18:57,160 --> 00:18:57,879 Speaker 3: rump up Rishie. 423 00:18:58,160 --> 00:18:59,200 Speaker 5: Great to have your analysis. 424 00:18:59,200 --> 00:19:01,480 Speaker 3: Thank you so much, mischie Julurier, he's over at RBC 425 00:19:01,600 --> 00:19:08,760 Speaker 3: Capital Markets. 426 00:19:10,200 --> 00:19:11,560 Speaker 5: Welcome back to New meg Technology. 427 00:19:11,560 --> 00:19:13,280 Speaker 4: I'm Caroline Hyde and I'm me Dudlow. Let's get a 428 00:19:13,320 --> 00:19:14,920 Speaker 4: quit check on the market. It's at a high level. 429 00:19:15,000 --> 00:19:17,240 Speaker 4: It really is the Fed in economics that are driving 430 00:19:17,280 --> 00:19:19,679 Speaker 4: these markets under performance in tech and aw's that one 431 00:19:19,760 --> 00:19:22,840 Speaker 4: hundred down one point three percent yesterday. The Fed holds 432 00:19:22,920 --> 00:19:26,280 Speaker 4: rates as expected. We get economic data on Thursday morning 433 00:19:26,280 --> 00:19:30,280 Speaker 4: that just re enforces this idea that the Fed leaves 434 00:19:30,359 --> 00:19:31,760 Speaker 4: rates higher for longer. 435 00:19:31,760 --> 00:19:32,880 Speaker 6: But AI is also. 436 00:19:32,720 --> 00:19:34,919 Speaker 4: Story when you think about specific movers on the Nasdaq 437 00:19:34,960 --> 00:19:38,040 Speaker 4: one hundred, the two. I'm looking at Microsoft in Amazon. 438 00:19:38,119 --> 00:19:41,840 Speaker 4: Actually Microsoft is paired much of its gain after giving 439 00:19:41,920 --> 00:19:44,160 Speaker 4: us those dates. We just went over for the release 440 00:19:44,240 --> 00:19:48,000 Speaker 4: of generative AI tools co Pilot and Office coming November one. 441 00:19:48,440 --> 00:19:51,800 Speaker 4: Now completely flat, flat as a pancake. But Amazon is 442 00:19:51,840 --> 00:19:55,359 Speaker 4: really accelerating its declines three point five percent. It fell 443 00:19:55,440 --> 00:19:58,960 Speaker 4: yesterday as well after it announced its generative AI offering 444 00:19:58,960 --> 00:20:01,240 Speaker 4: in the context of elect So we had Dave Lint, 445 00:20:01,320 --> 00:20:04,520 Speaker 4: the outgoing devices chief, on the show. It really didn't 446 00:20:04,520 --> 00:20:07,399 Speaker 4: do much to persuade investors to buy into this stock 447 00:20:07,480 --> 00:20:09,879 Speaker 4: right now. The idea that they've brought AI to their 448 00:20:09,920 --> 00:20:12,800 Speaker 4: hardware offering. Caroline that, of course a big points drag 449 00:20:12,800 --> 00:20:14,200 Speaker 4: on an Azdak one hundred right now. 450 00:20:14,600 --> 00:20:17,159 Speaker 3: And let's meanwhile, of course, talk about how AI is 451 00:20:17,160 --> 00:20:20,920 Speaker 3: interweaving itself into just about everything, calling, of course, the 452 00:20:21,280 --> 00:20:23,520 Speaker 3: discourse of leaders from around the world. They gathered right 453 00:20:23,560 --> 00:20:25,560 Speaker 3: here in New York City this week for the seventy 454 00:20:25,560 --> 00:20:29,040 Speaker 3: eighth session of the UN General Assembly, and as they 455 00:20:29,040 --> 00:20:31,399 Speaker 3: discussed the biggest issues facing the planet. Yes, you've got 456 00:20:31,400 --> 00:20:33,280 Speaker 3: climate change, Yes, of course you've got the war in Ukraine. 457 00:20:33,280 --> 00:20:34,920 Speaker 3: But you've also been having more and more on tech 458 00:20:34,960 --> 00:20:37,920 Speaker 3: and artificial intelligence. In fact, President Biden called on world's 459 00:20:38,000 --> 00:20:41,719 Speaker 3: countries to regulate artificial intelligence so that it doesn't so 460 00:20:41,880 --> 00:20:44,280 Speaker 3: called govern us. As part of his speech at the 461 00:20:44,280 --> 00:20:47,440 Speaker 3: Assembly earlier this week. Meanwhile, former UK Prime Minister Tony 462 00:20:47,480 --> 00:20:49,760 Speaker 3: Blair he actually sat down with our own David Western 463 00:20:49,800 --> 00:20:52,040 Speaker 3: and was talking about how AI perhaps what ought to 464 00:20:52,119 --> 00:20:52,760 Speaker 3: change government. 465 00:20:54,480 --> 00:20:57,760 Speaker 14: The big real world event is this technology revolution, and 466 00:20:57,800 --> 00:21:01,040 Speaker 14: particularly with generative AI, it's going to check everything. It's 467 00:21:01,040 --> 00:21:02,960 Speaker 14: going to change the way we live, the way we work. 468 00:21:03,400 --> 00:21:06,200 Speaker 14: It should change government by the way the way government operates, 469 00:21:06,200 --> 00:21:09,359 Speaker 14: the way public services operate. It's got enormous potential to 470 00:21:09,440 --> 00:21:12,040 Speaker 14: change the healthcare system for the better. But then there 471 00:21:12,040 --> 00:21:15,080 Speaker 14: are huge risks. Because it's a general purpose technology. You 472 00:21:15,119 --> 00:21:16,840 Speaker 14: can use it for bad as well as for good. 473 00:21:18,200 --> 00:21:18,400 Speaker 9: Oh. 474 00:21:18,560 --> 00:21:20,800 Speaker 3: I mean all of this comes as we prepare ourselves 475 00:21:20,840 --> 00:21:23,840 Speaker 3: for the UK to host its first ever Global AI 476 00:21:23,920 --> 00:21:28,600 Speaker 3: Safety Summit's coming in early November, convening international governments, industry experts. 477 00:21:28,600 --> 00:21:31,000 Speaker 3: We understand Kamala Harris is going to be flying over 478 00:21:31,040 --> 00:21:31,240 Speaker 3: for it. 479 00:21:31,359 --> 00:21:32,000 Speaker 5: Let's just talk. 480 00:21:31,880 --> 00:21:35,959 Speaker 3: About all of the AI presence and UK's well focus 481 00:21:36,000 --> 00:21:38,439 Speaker 3: on it as Joe White's with US UK Tech Ambassador 482 00:21:38,800 --> 00:21:41,560 Speaker 3: and you're sat there in San Francisco day to day 483 00:21:41,640 --> 00:21:44,920 Speaker 3: role really trying to export the UK to these big 484 00:21:44,960 --> 00:21:47,480 Speaker 3: Silicon Valley giants tech giants of the US saying. 485 00:21:47,320 --> 00:21:49,000 Speaker 5: Look, this is what the UK has to offer. 486 00:21:49,560 --> 00:21:52,480 Speaker 3: Why is the UK so focused on putting its stake 487 00:21:52,520 --> 00:21:53,680 Speaker 3: in the ground when it comes to AI? 488 00:21:57,000 --> 00:21:58,320 Speaker 6: Pleasure to be here, wanting no thank you? 489 00:21:59,640 --> 00:22:02,280 Speaker 1: The UK US is one of the only leading economies 490 00:22:02,280 --> 00:22:05,040 Speaker 1: which has some of these frontier AI labs, Google deep 491 00:22:05,040 --> 00:22:07,440 Speaker 1: Mind being founded there more than ten years ago. Now 492 00:22:08,520 --> 00:22:10,879 Speaker 1: for the top ten global universities, we have an enormous 493 00:22:10,920 --> 00:22:13,840 Speaker 1: base of talent and research around AI as a sector 494 00:22:14,080 --> 00:22:16,560 Speaker 1: and I think Prime Minister Suna really understands the importance 495 00:22:16,640 --> 00:22:19,359 Speaker 1: of this and to a certain the reason the AI 496 00:22:19,400 --> 00:22:21,679 Speaker 1: Safety Summit is created as is is to in order 497 00:22:21,760 --> 00:22:25,200 Speaker 1: to unleash the enormous potential of AI for positive change 498 00:22:25,280 --> 00:22:27,280 Speaker 1: both in the UK and around the world. Getting some 499 00:22:27,320 --> 00:22:31,000 Speaker 1: of those initial guardrails and that common understanding globally is 500 00:22:31,040 --> 00:22:33,960 Speaker 1: incredibly important to keeping us safe with this technology as it. 501 00:22:33,920 --> 00:22:37,800 Speaker 4: Develops, Joones, does the UK genuinely believe it has a 502 00:22:37,880 --> 00:22:41,320 Speaker 4: leadership role in the field of AI, or, if you're 503 00:22:41,359 --> 00:22:44,960 Speaker 4: honest with yourself, is the UK moving quickly to catch up? 504 00:22:46,560 --> 00:22:46,679 Speaker 6: Now? 505 00:22:46,680 --> 00:22:48,760 Speaker 1: I think the UK genuinely does have a leadership position 506 00:22:48,800 --> 00:22:50,960 Speaker 1: in this. As I said, a lot of the fundamental 507 00:22:51,000 --> 00:22:54,600 Speaker 1: AI research has been done in the UK's extraordinary university 508 00:22:54,640 --> 00:22:58,000 Speaker 1: based for years. When Demis founded deep Mind, he did 509 00:22:58,000 --> 00:22:59,840 Speaker 1: so in the UK. He was keen to keep it there. 510 00:23:00,119 --> 00:23:02,880 Speaker 1: We're seeing now with Open AI and Anthropic and others, 511 00:23:02,920 --> 00:23:05,680 Speaker 1: when they open their first international offices, they're choosing the UK. 512 00:23:06,200 --> 00:23:08,879 Speaker 1: The pool of talent there is pretty extraordinary and I 513 00:23:08,920 --> 00:23:12,280 Speaker 1: think the UK has a quite a unique global role 514 00:23:12,320 --> 00:23:15,440 Speaker 1: as convena to bring together countries from across the world 515 00:23:15,440 --> 00:23:18,160 Speaker 1: to talk about some of these major risks and issues, 516 00:23:18,560 --> 00:23:21,919 Speaker 1: whiles still having very much its own position in the 517 00:23:21,920 --> 00:23:23,920 Speaker 1: AI race with a lot of the companies and labs 518 00:23:23,960 --> 00:23:24,840 Speaker 1: which are based in the UK. 519 00:23:25,000 --> 00:23:27,720 Speaker 4: Well, exactly so the race with the companies. You know, 520 00:23:27,800 --> 00:23:30,680 Speaker 4: Cambridge one is one of the leading supercomputers in the world, 521 00:23:30,760 --> 00:23:34,520 Speaker 4: built on Nvidia DGX, largely for the healthcare use case. 522 00:23:34,640 --> 00:23:37,199 Speaker 4: I'm really interested in your day to day Joe. I 523 00:23:37,240 --> 00:23:40,760 Speaker 4: know that the UK is negotiating with the GPU makers. 524 00:23:41,080 --> 00:23:45,159 Speaker 4: Have you yourself held talks within Video or AMD and 525 00:23:45,200 --> 00:23:48,800 Speaker 4: Intel to secure the computes for the future work the 526 00:23:48,920 --> 00:23:51,200 Speaker 4: UK hopes to do in the field of AI. 527 00:23:52,880 --> 00:23:54,639 Speaker 6: Well, we feel a number of visitors here. 528 00:23:54,640 --> 00:23:57,240 Speaker 1: We've actually got the Chancellor here this week who's engaging 529 00:23:57,280 --> 00:24:00,480 Speaker 1: across the West coast in San Francisco, LA and then Seattle, 530 00:24:00,760 --> 00:24:03,960 Speaker 1: and so we do talk with both big cloud providers 531 00:24:04,000 --> 00:24:07,159 Speaker 1: as well as the big chip suppliers to talk about 532 00:24:07,200 --> 00:24:09,639 Speaker 1: the UK's needs and of course willing to increase the 533 00:24:09,640 --> 00:24:11,520 Speaker 1: amount of compute capacity that we have in the UK. 534 00:24:12,760 --> 00:24:16,040 Speaker 1: The chance committed to about nine hundred million pounds for 535 00:24:16,119 --> 00:24:18,920 Speaker 1: an AI supercomputer which was announced in the last budget, 536 00:24:19,000 --> 00:24:20,880 Speaker 1: as well as the AI Task Force, which is now 537 00:24:21,040 --> 00:24:24,000 Speaker 1: having a specific GPU cluster built for. 538 00:24:23,920 --> 00:24:24,959 Speaker 6: AI safety research. 539 00:24:25,680 --> 00:24:29,399 Speaker 3: Jeremy Hant was fielding a fair few questions on China 540 00:24:29,600 --> 00:24:31,600 Speaker 3: and the fact that the UK decided to invite the 541 00:24:31,680 --> 00:24:34,840 Speaker 3: Chinese delegation to this AI safety summit. 542 00:24:34,920 --> 00:24:36,000 Speaker 5: Joe, do you. 543 00:24:35,920 --> 00:24:39,080 Speaker 3: Defend that decision as well? 544 00:24:39,119 --> 00:24:43,640 Speaker 1: I think AI will be a global both benefit and challenge, 545 00:24:43,680 --> 00:24:46,800 Speaker 1: and I think it's a technology which will be relatively borderless, 546 00:24:46,840 --> 00:24:49,719 Speaker 1: and so I think the UK recognizes that for us 547 00:24:49,720 --> 00:24:51,960 Speaker 1: to get the kind of benefits that we want, we 548 00:24:52,000 --> 00:24:54,280 Speaker 1: also have to have a baseline of technology and the 549 00:24:54,320 --> 00:24:56,560 Speaker 1: Foreign Secretory confirmed earlier this week that we have in 550 00:24:56,600 --> 00:25:00,480 Speaker 1: fact invited to China to the summit now for them 551 00:25:00,480 --> 00:25:03,639 Speaker 1: to determine who they will send and how they will engage. 552 00:25:03,760 --> 00:25:05,760 Speaker 1: But I think there are common issues that we can 553 00:25:05,800 --> 00:25:07,760 Speaker 1: all agree on. I think again, this is where the 554 00:25:07,840 --> 00:25:11,240 Speaker 1: UK has a great space as convener to bring different 555 00:25:11,280 --> 00:25:13,679 Speaker 1: parties together to get that initial baseline. 556 00:25:14,000 --> 00:25:16,840 Speaker 3: I think it's interesting that Nick Klegg's also been invested. 557 00:25:17,119 --> 00:25:19,240 Speaker 3: I was with him yesterday having a discussion about the 558 00:25:19,240 --> 00:25:21,840 Speaker 3: future of AI regulation and he almost called it a 559 00:25:21,880 --> 00:25:25,600 Speaker 3: frenzy of everyone trying to be hosting these discussions AI 560 00:25:25,640 --> 00:25:28,399 Speaker 3: summit with the UK. You've got the G seven meeting 561 00:25:28,600 --> 00:25:32,159 Speaker 3: in November two in Japan, the Hiroshima AI process as 562 00:25:32,200 --> 00:25:34,119 Speaker 3: they call it. You've just had government here in the 563 00:25:34,200 --> 00:25:39,200 Speaker 3: United States convening the most powerful AI CEOs plus civil society. 564 00:25:39,560 --> 00:25:41,640 Speaker 3: Is this just like a rush of discussion but nothing 565 00:25:41,680 --> 00:25:42,400 Speaker 3: actually happening. 566 00:25:44,040 --> 00:25:46,720 Speaker 1: Well, No, the UK's in touch with all the organizers 567 00:25:46,920 --> 00:25:49,080 Speaker 1: of these events and sees the Safety Summit very much 568 00:25:49,080 --> 00:25:53,919 Speaker 1: just building on these pieces. When Zunak agreed this with 569 00:25:53,960 --> 00:25:57,240 Speaker 1: Biden back in June for the UK Safety Summit, it 570 00:25:57,280 --> 00:26:00,119 Speaker 1: was really based on the existing White House commitments. So 571 00:26:00,200 --> 00:26:03,040 Speaker 1: we're not trying to diverge from these things and the 572 00:26:03,160 --> 00:26:05,119 Speaker 1: specific focus of the Safety Summit, which is on the 573 00:26:05,119 --> 00:26:09,120 Speaker 1: frontier risks AI posts both short, medium and long term challenges, 574 00:26:09,200 --> 00:26:12,000 Speaker 1: let's say, and the specific ones that the summon is 575 00:26:12,000 --> 00:26:16,640 Speaker 1: looking at is things like the risks posed by frontier 576 00:26:16,680 --> 00:26:19,159 Speaker 1: models I think, like biosecurity and so on. But this 577 00:26:19,200 --> 00:26:21,720 Speaker 1: will really build on the commitments made of the White 578 00:26:21,720 --> 00:26:23,520 Speaker 1: House and in some ways demonstrate how these are being 579 00:26:23,520 --> 00:26:24,840 Speaker 1: operationalized by the companies. 580 00:26:24,880 --> 00:26:28,520 Speaker 3: Now, it's all coming back to regulation and actually where 581 00:26:28,560 --> 00:26:31,159 Speaker 3: does the UK sit within that? Joe, You're sort of 582 00:26:31,160 --> 00:26:35,240 Speaker 3: trying to straddle a relatively easy regulation as the global 583 00:26:35,600 --> 00:26:38,760 Speaker 3: world tends to view the US. You've got stricter EU 584 00:26:38,960 --> 00:26:40,719 Speaker 3: pushing through regulation very quickly. 585 00:26:40,880 --> 00:26:42,120 Speaker 5: But then you think of the CMA. 586 00:26:42,280 --> 00:26:44,439 Speaker 3: Dare I say at flip Flop on Activision Blizzard, I'm 587 00:26:44,480 --> 00:26:47,520 Speaker 3: thinking of new digital competition rules coming in Joe. How 588 00:26:47,600 --> 00:26:50,200 Speaker 3: do these big tech companies view the UK's regulation. 589 00:26:51,640 --> 00:26:54,840 Speaker 1: Well, the UK has a real strength in its regulators. 590 00:26:54,920 --> 00:26:57,320 Speaker 1: I think the UK is widely seen as having sensible, 591 00:26:57,480 --> 00:27:01,840 Speaker 1: engaged proportion at regulation. We do have independent regulators. So 592 00:27:02,440 --> 00:27:04,560 Speaker 1: as the chance of saying you can't always get the 593 00:27:04,600 --> 00:27:07,639 Speaker 1: regulator necessarily to do what they want from a political perspective, 594 00:27:07,680 --> 00:27:11,480 Speaker 1: that's in fact a feature, not a bug. But I 595 00:27:11,520 --> 00:27:15,080 Speaker 1: think the UK's history process of law engagement and now 596 00:27:15,119 --> 00:27:17,520 Speaker 1: you saw this with our AI white paper published earlier 597 00:27:17,520 --> 00:27:20,399 Speaker 1: in the year. We're not standing up a different body 598 00:27:20,440 --> 00:27:23,360 Speaker 1: for AI regulation, but in fact get our existing regulators, 599 00:27:23,359 --> 00:27:26,640 Speaker 1: whether across health or education or broadcast, to look at 600 00:27:26,640 --> 00:27:30,159 Speaker 1: the specific AI challenges within their sector and therefore you 601 00:27:30,200 --> 00:27:33,479 Speaker 1: get the expertise and the ability to adapt within that. 602 00:27:33,920 --> 00:27:36,440 Speaker 1: So the UK does see AI as one of those 603 00:27:36,440 --> 00:27:39,600 Speaker 1: areas that needs that ongoing iterative conversation with regulators, but 604 00:27:39,720 --> 00:27:43,000 Speaker 1: not where we need to create perscriptive rules which may 605 00:27:43,520 --> 00:27:45,919 Speaker 1: turn out to be added day quite quickly. 606 00:27:46,080 --> 00:27:48,560 Speaker 4: You know, Jerry, I get the UK is developing a 607 00:27:48,560 --> 00:27:51,040 Speaker 4: position on AI, and you have an outgoing message. But 608 00:27:51,080 --> 00:27:53,560 Speaker 4: you're in San Francisco and you're talking to tech, you're 609 00:27:53,600 --> 00:27:56,720 Speaker 4: talking to allies. What is the biggest question you get 610 00:27:56,720 --> 00:27:59,960 Speaker 4: from them, the inbound about what you t can offer. 611 00:28:02,000 --> 00:28:04,159 Speaker 1: Well, I think folks really do see the UK as 612 00:28:04,200 --> 00:28:08,800 Speaker 1: the first natural expansion point from the US often really 613 00:28:08,880 --> 00:28:12,000 Speaker 1: going to Europe. UK is still the first place that 614 00:28:12,119 --> 00:28:14,320 Speaker 1: is chosen to go into. And we've had this conversation. 615 00:28:14,400 --> 00:28:17,280 Speaker 1: Recently with that, we saw Andrews and Horowitz announce their 616 00:28:17,280 --> 00:28:21,160 Speaker 1: new office outside the US in the UK during London 617 00:28:21,200 --> 00:28:23,600 Speaker 1: Tech Week earlier, and so I think folks really do 618 00:28:23,680 --> 00:28:26,639 Speaker 1: continue to see the UK as the first natural choice externally. 619 00:28:27,000 --> 00:28:30,160 Speaker 1: They're fascinated in the regulator environment that you do see 620 00:28:30,160 --> 00:28:33,480 Speaker 1: the UK as having a fantastic tech sector. It's only 621 00:28:33,920 --> 00:28:36,800 Speaker 1: third tech sector now valued more than the trillion dollars more, 622 00:28:36,920 --> 00:28:39,160 Speaker 1: more unicorns in the UK than France, Germany and the 623 00:28:39,200 --> 00:28:42,000 Speaker 1: nord it's combined, and so they recognize that talent, they 624 00:28:42,000 --> 00:28:47,200 Speaker 1: recognize the regulatory adaptability that's there, and so they're very 625 00:28:47,240 --> 00:28:49,480 Speaker 1: keen to understand how the UK is going to continue 626 00:28:49,480 --> 00:28:51,160 Speaker 1: to develop its position there. 627 00:28:51,880 --> 00:28:54,800 Speaker 4: Joe White, UK Tech combatsastor that they're really really appreciate 628 00:28:54,840 --> 00:28:57,280 Speaker 4: having you here on Bloombow Technology add a SX pleasure. 629 00:28:57,360 --> 00:28:57,920 Speaker 6: Thank you so much. 630 00:28:57,960 --> 00:28:59,800 Speaker 4: All Right, coming up here on the show, AI co 631 00:29:00,080 --> 00:29:01,920 Speaker 4: pilots are all the rage, and we're going to be 632 00:29:01,960 --> 00:29:04,880 Speaker 4: joined by Duck Bill co founder Meghan Joyce and four 633 00:29:04,960 --> 00:29:08,960 Speaker 4: Run Adventures Kirston Green for more on that conversation next 634 00:29:08,960 --> 00:29:10,440 Speaker 4: and exciting news coming from those two. 635 00:29:10,680 --> 00:29:12,479 Speaker 6: This is Bloomberg technology. 636 00:29:22,280 --> 00:29:23,160 Speaker 5: Are the joy of. 637 00:29:23,120 --> 00:29:25,959 Speaker 3: The idea of a tech driven personal assistant. It's long 638 00:29:26,040 --> 00:29:28,360 Speaker 3: kind of been a bold ambision of Silicon Valley got Siri, 639 00:29:28,440 --> 00:29:30,080 Speaker 3: Alexa in task Rabbit. 640 00:29:29,960 --> 00:29:30,600 Speaker 5: To do the physical. 641 00:29:30,640 --> 00:29:34,400 Speaker 3: But with recent AI advancements, there's a personal assistant that 642 00:29:34,440 --> 00:29:37,880 Speaker 3: perhaps could be actually the next level and around the corner. Now, 643 00:29:37,880 --> 00:29:39,840 Speaker 3: this is what duck Bill is promising. It's an AI 644 00:29:39,880 --> 00:29:41,640 Speaker 3: powered personal assistant tackling. 645 00:29:41,400 --> 00:29:44,200 Speaker 5: Consumers to do lists. The company has recently come out 646 00:29:44,200 --> 00:29:44,600 Speaker 5: of stealth. 647 00:29:44,600 --> 00:29:47,000 Speaker 3: They've just raised yet another round of money twenty five 648 00:29:47,040 --> 00:29:49,840 Speaker 3: million dollars Series A, and it's being led by four Unadventures. 649 00:29:49,880 --> 00:29:52,600 Speaker 3: We're very pleased to welcome therefore four Runners founding partner 650 00:29:52,800 --> 00:29:53,400 Speaker 3: Kirstin Green. 651 00:29:53,520 --> 00:29:56,440 Speaker 5: He's also been joined by on the board of duck Bill. 652 00:29:56,520 --> 00:29:58,680 Speaker 3: She's going to be alongside Duckville CEO and co found 653 00:29:58,680 --> 00:30:00,320 Speaker 3: of Megan Joyce Meghan be Causin. 654 00:30:00,400 --> 00:30:01,680 Speaker 5: It's great to have you both. 655 00:30:01,520 --> 00:30:03,480 Speaker 3: With us, and Meg and I start with you, because boy, 656 00:30:03,520 --> 00:30:05,920 Speaker 3: if we've got a day of talking of these assistants 657 00:30:06,160 --> 00:30:10,240 Speaker 3: basically co pilots Microsoft announcing their Microsoft three six five 658 00:30:10,320 --> 00:30:13,600 Speaker 3: Copilot two. They're also being run and built on open 659 00:30:13,640 --> 00:30:16,400 Speaker 3: AIS underlying foundational models. 660 00:30:16,680 --> 00:30:17,920 Speaker 5: What makes les different. 661 00:30:19,640 --> 00:30:22,600 Speaker 11: So what makes Duckbill unique is the fact that we 662 00:30:22,720 --> 00:30:27,240 Speaker 11: combine two things, the best of expert humans who add 663 00:30:27,280 --> 00:30:30,920 Speaker 11: the personal touch and nuance to your tasks, along with 664 00:30:31,080 --> 00:30:35,400 Speaker 11: AI tooling that allows efficiency and breadth and scale of 665 00:30:35,440 --> 00:30:40,520 Speaker 11: the underlying legwork. So Duckbill's personal assistance are assigned to 666 00:30:40,600 --> 00:30:45,640 Speaker 11: tasks and they use custom built AI tooling that leverage 667 00:30:45,680 --> 00:30:49,600 Speaker 11: existing large language models with our own fine tuning and 668 00:30:49,680 --> 00:30:54,520 Speaker 11: retrieval augmented generation to fulfill tasks. And what that allows 669 00:30:54,600 --> 00:30:58,080 Speaker 11: us to do is to actually tackle the long tail 670 00:30:58,160 --> 00:31:01,520 Speaker 11: of to do's and the tasks you dread most end 671 00:31:01,520 --> 00:31:06,080 Speaker 11: to end, including what AI can handle and where AI 672 00:31:06,360 --> 00:31:09,640 Speaker 11: bumps up against limits and the human can take the 673 00:31:09,640 --> 00:31:11,200 Speaker 11: baton kusin. 674 00:31:11,360 --> 00:31:14,920 Speaker 3: To that point, you must be bombarded with companies offering 675 00:31:15,000 --> 00:31:18,719 Speaker 3: AI services. You have made the name really of foreign 676 00:31:18,720 --> 00:31:22,680 Speaker 3: adventures backing some really well companies that blew out in 677 00:31:22,760 --> 00:31:25,760 Speaker 3: terms of the consumer. How is dug Bale setting itself apart? 678 00:31:25,880 --> 00:31:26,960 Speaker 3: Why write this check? 679 00:31:28,400 --> 00:31:30,800 Speaker 15: Thank you for the question. So you know, I think, 680 00:31:31,200 --> 00:31:34,200 Speaker 15: as you mentioned, there are there's a tremendous amount of 681 00:31:34,240 --> 00:31:37,120 Speaker 15: activity in the AI space right now. The venture industry 682 00:31:37,280 --> 00:31:40,680 Speaker 15: is rightfully I think really excited about. AI represents a 683 00:31:40,680 --> 00:31:45,560 Speaker 15: major leap for technology. There really are two major ways 684 00:31:45,600 --> 00:31:48,880 Speaker 15: that AI, you know, companies are approaching AI. One is 685 00:31:49,320 --> 00:31:54,120 Speaker 15: the architecture, architecting the foundation for the AI and the industry, 686 00:31:54,160 --> 00:31:57,400 Speaker 15: and the other is really implementing and using AI to 687 00:31:57,520 --> 00:32:02,280 Speaker 15: deliver business efficiencies or better and even all new products 688 00:32:02,280 --> 00:32:06,000 Speaker 15: and services. And Duckbille really falls into the latter. So 689 00:32:06,120 --> 00:32:08,680 Speaker 15: this notion of a digital assistant has really been on 690 00:32:08,720 --> 00:32:12,040 Speaker 15: people's minds for a long time. We've heard about it 691 00:32:12,080 --> 00:32:14,719 Speaker 15: over the years. If only I could have help with 692 00:32:14,760 --> 00:32:16,880 Speaker 15: my to do list, if only I could manage my 693 00:32:16,920 --> 00:32:18,840 Speaker 15: busy life, I never see. 694 00:32:18,680 --> 00:32:20,200 Speaker 7: The bottom of my two do list. 695 00:32:20,720 --> 00:32:24,640 Speaker 15: The first generation of offerings like Siri and Alexa, they 696 00:32:24,640 --> 00:32:28,080 Speaker 15: were delivering some value along those lines, but I don't 697 00:32:28,080 --> 00:32:30,800 Speaker 15: think they've scaled anywhere near to kind of what the 698 00:32:30,840 --> 00:32:35,080 Speaker 15: most ambitious hope was for the potential there. And AI 699 00:32:35,160 --> 00:32:38,360 Speaker 15: really changes all of this. And in the case of Duckbill, 700 00:32:39,000 --> 00:32:42,400 Speaker 15: as Megan reference, the integration of AI and human in 701 00:32:42,480 --> 00:32:47,760 Speaker 15: the loop offers the ability to contextualize discovery and execution, 702 00:32:49,280 --> 00:32:51,480 Speaker 15: and that really feels like it changes the game for 703 00:32:51,560 --> 00:32:55,920 Speaker 15: the consumer in making an offering like an AI assistant 704 00:32:56,040 --> 00:33:01,920 Speaker 15: or a digital assistant valuable. It enables a business model 705 00:33:01,960 --> 00:33:03,920 Speaker 15: that we think is scalable and compelling. 706 00:33:04,040 --> 00:33:06,280 Speaker 4: So there's days I wake up, you know, my wife's 707 00:33:06,320 --> 00:33:07,880 Speaker 4: left to post it note on the phrase where she 708 00:33:08,000 --> 00:33:09,800 Speaker 4: just stuck it to my forehead, and I think, if 709 00:33:09,840 --> 00:33:12,600 Speaker 4: only I could do those things. But here's the thing, 710 00:33:12,720 --> 00:33:15,880 Speaker 4: duck Bill, Megan, is ninety nine dollars a month. 711 00:33:16,640 --> 00:33:17,720 Speaker 6: How do you arrive at that? 712 00:33:19,600 --> 00:33:22,720 Speaker 11: So we've found over the course of our year long 713 00:33:22,840 --> 00:33:26,040 Speaker 11: beta that that's the price point at which we can 714 00:33:26,120 --> 00:33:30,160 Speaker 11: support unlimited tasks for the vast majority of users. 715 00:33:30,600 --> 00:33:34,000 Speaker 12: And we look at it as the uber. 716 00:33:33,880 --> 00:33:38,880 Speaker 11: Black version of what duck Bill is today, moving towards 717 00:33:39,000 --> 00:33:41,760 Speaker 11: a more mass market product built on the learnings of 718 00:33:41,800 --> 00:33:43,160 Speaker 11: that premium offering. 719 00:33:43,600 --> 00:33:44,920 Speaker 5: And so what we are. 720 00:33:44,840 --> 00:33:48,200 Speaker 11: Excited about is continuing to serve more and more people 721 00:33:48,320 --> 00:33:52,120 Speaker 11: with that premium price point subscription and learning from that 722 00:33:52,280 --> 00:33:55,520 Speaker 11: to eventually serve the people who need it most, who 723 00:33:55,520 --> 00:33:58,800 Speaker 11: are the mass market, the people who cannot afford a 724 00:33:58,800 --> 00:34:02,800 Speaker 11: personal assistant but deserve help just like anybody else from 725 00:34:02,840 --> 00:34:05,920 Speaker 11: mass And by continuing no, no, no, sorry to jumping Meghan, 726 00:34:05,960 --> 00:34:08,440 Speaker 11: I know, I mean I find that business concept fascinating 727 00:34:08,520 --> 00:34:10,360 Speaker 11: Uber Black to the mass market model. 728 00:34:10,560 --> 00:34:11,680 Speaker 6: You needed the funds to do that. 729 00:34:11,680 --> 00:34:14,600 Speaker 4: In Kirstin coming out of self with this kind of money, 730 00:34:14,920 --> 00:34:16,759 Speaker 4: that's a lot, and it's interesting you going to take 731 00:34:16,800 --> 00:34:19,239 Speaker 4: a board seat. What are you going to be advising 732 00:34:19,320 --> 00:34:21,920 Speaker 4: Meghan to do in the next few months as they 733 00:34:21,960 --> 00:34:22,680 Speaker 4: get off the ground. 734 00:34:23,160 --> 00:34:25,719 Speaker 15: Well, certainly one of the most compelling parts of the 735 00:34:25,760 --> 00:34:28,480 Speaker 15: investment was the opportunity to work with Megan, who is 736 00:34:28,520 --> 00:34:32,920 Speaker 15: an experienced executive and in many ways has led companies 737 00:34:32,920 --> 00:34:38,120 Speaker 15: in similar endeavors related to Duckbill. So I'm looking forward 738 00:34:38,120 --> 00:34:40,279 Speaker 15: to learning with her and from her. But you know, 739 00:34:40,400 --> 00:34:43,279 Speaker 15: as we mentioned earlier, the question was posed about this 740 00:34:43,360 --> 00:34:46,680 Speaker 15: is a consumer product. This is about delighting a consumer, 741 00:34:47,800 --> 00:34:52,400 Speaker 15: meeting a customer's need, resonating with the consumer. I certainly 742 00:34:52,440 --> 00:34:55,400 Speaker 15: hope that our years of experience in living in the 743 00:34:55,440 --> 00:34:58,319 Speaker 15: heads of consumers and working with some great founders that 744 00:34:58,400 --> 00:35:00,759 Speaker 15: brought products that have become you what is to life 745 00:35:01,840 --> 00:35:04,520 Speaker 15: is something we can do here at duck Bill. Also, 746 00:35:05,080 --> 00:35:08,120 Speaker 15: I think, as Megan articulated, like Uber Black, you know, 747 00:35:08,360 --> 00:35:11,480 Speaker 15: duck Bill Black is the start, but the vision really 748 00:35:11,600 --> 00:35:18,000 Speaker 15: is to reach mass audiences and help people navigate their 749 00:35:18,040 --> 00:35:20,960 Speaker 15: lives and the Internet more effectively. 750 00:35:21,520 --> 00:35:23,040 Speaker 5: And Megan's love. 751 00:35:22,960 --> 00:35:25,239 Speaker 15: To mention for a moment, just this idea of like 752 00:35:25,320 --> 00:35:29,920 Speaker 15: reimagining search and duck Bill really leading the way, or 753 00:35:29,960 --> 00:35:31,920 Speaker 15: something like duck Bill leading the way in that like 754 00:35:32,080 --> 00:35:36,520 Speaker 15: search really hasn't been reimagined for twenty years. It's been 755 00:35:36,560 --> 00:35:39,279 Speaker 15: a blank page with a bar, or it's been an 756 00:35:39,280 --> 00:35:42,680 Speaker 15: ad led query field. And I do think that, you know, 757 00:35:42,719 --> 00:35:45,880 Speaker 15: the companies that brought us those services are incredibly well resourced, 758 00:35:45,960 --> 00:35:49,080 Speaker 15: with really smart people around the table, and they're also 759 00:35:49,239 --> 00:35:52,839 Speaker 15: thinking about AI making their products and services better. But 760 00:35:53,080 --> 00:35:57,759 Speaker 15: their business models rely on ads and they in many 761 00:35:57,760 --> 00:36:00,319 Speaker 15: ways that's not customer aligned. And I do think there's 762 00:36:00,360 --> 00:36:03,080 Speaker 15: a chance here for a company for Duckbill to take 763 00:36:03,120 --> 00:36:05,640 Speaker 15: on this idea of being an entry point to the 764 00:36:05,680 --> 00:36:09,600 Speaker 15: Internet and contextualizing search and discovery and execution. 765 00:36:10,440 --> 00:36:13,600 Speaker 3: We've referenced a fair few times Megan, your experience, you 766 00:36:13,719 --> 00:36:16,960 Speaker 3: of course will helping grow ober GM of US and 767 00:36:17,000 --> 00:36:19,600 Speaker 3: Canada your oscar health as well. You know how to 768 00:36:19,640 --> 00:36:22,520 Speaker 3: build Is this money going to be put towards talent? 769 00:36:22,760 --> 00:36:24,640 Speaker 3: Are you're going to be ferociously trying to take that 770 00:36:24,680 --> 00:36:28,160 Speaker 3: talent from the search ogs who aren't quite reimagining things 771 00:36:28,200 --> 00:36:28,839 Speaker 3: quickly enough. 772 00:36:30,440 --> 00:36:33,200 Speaker 11: So we've learned an enormous amount over the course of 773 00:36:33,239 --> 00:36:36,520 Speaker 11: the past Y're operating and operating in data, and what 774 00:36:36,640 --> 00:36:38,800 Speaker 11: this funding will allow us to do is take the 775 00:36:38,880 --> 00:36:41,520 Speaker 11: roadmap that we've laid out for the next few years 776 00:36:41,600 --> 00:36:45,359 Speaker 11: and really accelerate it. Our mission is to serve that 777 00:36:45,480 --> 00:36:49,160 Speaker 11: mass market, to leverage AI, to help ensure that the 778 00:36:49,280 --> 00:36:52,200 Speaker 11: rising tide lifts all boats, and that it's not just 779 00:36:52,560 --> 00:36:56,400 Speaker 11: the privileged who are benefiting from AI or benefiting from HELP, 780 00:36:56,640 --> 00:36:58,560 Speaker 11: but that everyone has access to it. 781 00:36:58,680 --> 00:36:59,839 Speaker 12: And we will be. 782 00:37:00,160 --> 00:37:03,719 Speaker 11: Investing deeply and quickly to get to that mission even 783 00:37:03,800 --> 00:37:05,520 Speaker 11: faster over the coming months and years. 784 00:37:05,960 --> 00:37:08,400 Speaker 4: All Right, four run Aventures founding partner Chist and green 785 00:37:08,520 --> 00:37:11,399 Speaker 4: Backing Duck Bill CEO and co found and Megan Joyce 786 00:37:11,400 --> 00:37:22,360 Speaker 4: Thanks to you both. The Author's Guild, the country's oldest 787 00:37:22,360 --> 00:37:26,400 Speaker 4: and largest organization representing writers and authors, sued Open AI 788 00:37:26,840 --> 00:37:30,320 Speaker 4: for copyright infringement. They alleged that the company's large language 789 00:37:30,320 --> 00:37:34,280 Speaker 4: models engage in quote systematic theft on a mass scale. 790 00:37:34,320 --> 00:37:37,200 Speaker 4: They filed the proposed class action alongside over a dozen 791 00:37:37,239 --> 00:37:40,600 Speaker 4: well known authors like George R. R. Martin and John Grisham, 792 00:37:40,760 --> 00:37:43,720 Speaker 4: an Open AI spokesperson, said in a statement the company 793 00:37:43,760 --> 00:37:44,680 Speaker 4: believes writers and. 794 00:37:44,640 --> 00:37:47,200 Speaker 6: Authors should quote benefit. 795 00:37:46,880 --> 00:37:49,880 Speaker 4: From AI technology and that they're optimistic they will continue 796 00:37:49,880 --> 00:37:53,280 Speaker 4: to find mutually beneficial ways to work together. 797 00:37:53,520 --> 00:37:57,040 Speaker 3: Carolin, Well, we're just hearing what the writer of Game 798 00:37:57,080 --> 00:37:59,719 Speaker 3: of Thrones was thinking about in his current iteration. 799 00:38:00,080 --> 00:38:01,839 Speaker 5: Look, we go from those sorts of. 800 00:38:01,760 --> 00:38:04,560 Speaker 3: Writers, the Writers Guild of America and a group representing 801 00:38:04,600 --> 00:38:07,560 Speaker 3: major Hollywood studios. They would meet, of course for a 802 00:38:07,560 --> 00:38:10,520 Speaker 3: second day. We understanding and encouraging sign talks of progressing 803 00:38:10,560 --> 00:38:13,720 Speaker 3: in this pretty long labor standoff that has lasted for months. 804 00:38:14,040 --> 00:38:16,640 Speaker 3: So it's say executives, some Disney, Netflix, and we see 805 00:38:16,680 --> 00:38:18,000 Speaker 3: Warner Brothers, Discovery. 806 00:38:18,239 --> 00:38:19,239 Speaker 5: They took part in these talks. 807 00:38:19,320 --> 00:38:21,360 Speaker 3: Let's get out to Blue Mugs, Lucas share and I 808 00:38:21,400 --> 00:38:22,880 Speaker 3: mean we've had a few full starts. 809 00:38:23,280 --> 00:38:25,000 Speaker 5: Any light at the end of the tunnel. 810 00:38:24,719 --> 00:38:27,640 Speaker 6: Here, Yeah, I think real light at the end of 811 00:38:27,680 --> 00:38:28,120 Speaker 6: the tunnel. 812 00:38:28,160 --> 00:38:33,360 Speaker 16: You know, they last had substantive conversations in August. The 813 00:38:33,400 --> 00:38:36,480 Speaker 16: studio's offered a proposal that I think made some real advances. 814 00:38:36,520 --> 00:38:38,680 Speaker 16: The writers said it wasn't enough, and then they sort 815 00:38:38,680 --> 00:38:42,120 Speaker 16: of broke and couldn't make any progress. The studios have 816 00:38:42,200 --> 00:38:45,800 Speaker 16: made yet another offer on Wednesday, and they meet this morning, 817 00:38:45,840 --> 00:38:49,319 Speaker 16: Thursday morning, where the writers are expected to counter. And 818 00:38:49,440 --> 00:38:52,640 Speaker 16: how the negotiation or conversation today goes, I think will 819 00:38:52,680 --> 00:38:53,359 Speaker 16: determine a lot. 820 00:38:53,440 --> 00:38:53,560 Speaker 14: You know. 821 00:38:53,800 --> 00:38:56,040 Speaker 16: If they make progress, I think we could see a 822 00:38:56,080 --> 00:38:57,400 Speaker 16: deal relatively quickly. 823 00:38:57,640 --> 00:38:59,040 Speaker 7: If they don't, then who knows. 824 00:38:59,520 --> 00:39:03,480 Speaker 4: Lucas's used in the media landscape was well, not surprising really, 825 00:39:03,520 --> 00:39:06,400 Speaker 4: but li Rupert Murdock stepping down as chairman of boards 826 00:39:06,400 --> 00:39:09,759 Speaker 4: for both Fox and News Corp. Lachlan Murdock taking the 827 00:39:09,880 --> 00:39:12,440 Speaker 4: chair of News Corp. Just just talk us through this 828 00:39:12,560 --> 00:39:13,880 Speaker 4: process and what we've learned. 829 00:39:14,800 --> 00:39:19,719 Speaker 16: I mean, look, we're watching the slow but inevitable handoff 830 00:39:19,920 --> 00:39:23,080 Speaker 16: from Rupert, one of the great media moguls of of 831 00:39:23,120 --> 00:39:26,240 Speaker 16: our age, whatever you think of him, to his son Lachlan, 832 00:39:26,280 --> 00:39:29,279 Speaker 16: who has been taking on more and more responsibility at 833 00:39:29,280 --> 00:39:29,760 Speaker 16: the company. 834 00:39:29,840 --> 00:39:31,919 Speaker 6: I don't think this is it is. It is huge news, 835 00:39:31,920 --> 00:39:32,959 Speaker 6: but not shocking news. 836 00:39:32,960 --> 00:39:33,080 Speaker 12: You know. 837 00:39:33,160 --> 00:39:34,000 Speaker 9: Rupert Murdoch is. 838 00:39:34,400 --> 00:39:35,240 Speaker 6: In his nineties. 839 00:39:35,880 --> 00:39:38,720 Speaker 16: There have been kind of constant rumors about his health, 840 00:39:38,719 --> 00:39:41,120 Speaker 16: but nothing confirmed. You know, I think people closed Hi 841 00:39:41,160 --> 00:39:44,200 Speaker 16: would probably say that he's doing just fine. And so 842 00:39:44,360 --> 00:39:47,080 Speaker 16: he's he's giving his son more and more of a 843 00:39:47,440 --> 00:39:48,799 Speaker 16: presence at the company. 844 00:39:49,080 --> 00:39:52,040 Speaker 3: Succession in real life. Luca Shaw, brilliant. Thank you very 845 00:39:52,120 --> 00:39:54,240 Speaker 3: much for keeping us up to speed with it. I meanwhile, 846 00:39:54,280 --> 00:39:56,480 Speaker 3: that does it for this edition of Bloomberg Technology. 847 00:39:56,520 --> 00:39:59,880 Speaker 4: Yet you can recap this episode on our podcast Apple Spotify, 848 00:40:00,080 --> 00:40:02,279 Speaker 4: iHeart wherever you get you will pollcast car. 849 00:40:02,520 --> 00:40:04,120 Speaker 3: I mean, well, we want to send it back to 850 00:40:04,160 --> 00:40:05,959 Speaker 3: the Bloomberg Global Credit form. 851 00:40:05,960 --> 00:40:06,960 Speaker 5: It's on the way in London. 852 00:40:07,000 --> 00:40:09,440 Speaker 3: And in fact, Joshua Eastleys now speaking, he had some 853 00:40:09,480 --> 00:40:11,880 Speaker 3: interesting things to say about the downfall of SVB earlier 854 00:40:11,880 --> 00:40:13,920 Speaker 3: in the year. Now, remember he's a co CEO and 855 00:40:13,960 --> 00:40:15,240 Speaker 3: co president at Sixth Street. 856 00:40:15,360 --> 00:40:16,359 Speaker 5: Just take a lesson in. 857 00:40:17,480 --> 00:40:22,360 Speaker 17: A lot of those industries have those dynamics. But I think, again, 858 00:40:22,560 --> 00:40:26,520 Speaker 17: going to back to recoveries, I think in default, I 859 00:40:26,520 --> 00:40:29,920 Speaker 17: think private credit has real two advantages. One is that 860 00:40:30,600 --> 00:40:34,520 Speaker 17: they have the ability to industry tilt and active manage. 861 00:40:35,120 --> 00:40:38,359 Speaker 17: And the second thing is is that the documents tend 862 00:40:38,400 --> 00:40:42,040 Speaker 17: to be tighter and the recoveries tend to be higher 863 00:40:42,600 --> 00:40:47,200 Speaker 17: because there's less on the margin flexibility or do you 864 00:40:47,239 --> 00:40:51,439 Speaker 17: for asset liability management trades for the sponsor and less 865 00:40:51,520 --> 00:40:56,080 Speaker 17: lender and lender of violence. So I think private credit 866 00:40:56,200 --> 00:40:59,920 Speaker 17: has ways to win that are significant structural ways that 867 00:41:00,080 --> 00:41:04,400 Speaker 17: when between industry tilt and the dynamics. 868 00:41:03,880 --> 00:41:06,680 Speaker 9: And private credit that I think should prove well. 869 00:41:07,040 --> 00:41:09,959 Speaker 18: So you think maybe as on a return basis, isn't 870 00:41:09,960 --> 00:41:13,440 Speaker 18: that this works well with our poll question what will 871 00:41:13,480 --> 00:41:16,480 Speaker 18: perform best over the next twelve months? High old bonds, 872 00:41:16,760 --> 00:41:22,480 Speaker 18: leverage loans, clos private credit or distressed debt? You have 873 00:41:22,560 --> 00:41:25,080 Speaker 18: a story career in distressed. Do you really think this 874 00:41:25,200 --> 00:41:28,680 Speaker 18: stress might be the play for the next twelve months 875 00:41:28,760 --> 00:41:30,319 Speaker 18: or do you have a different view. 876 00:41:30,840 --> 00:41:33,480 Speaker 17: Look, we have this great thing about one of the 877 00:41:33,520 --> 00:41:36,120 Speaker 17: advantages that Sixth Street has, it's a seventy five bone 878 00:41:36,160 --> 00:41:39,160 Speaker 17: dollars asset manager, is we have a whole bunch of windows. 879 00:41:38,800 --> 00:41:42,360 Speaker 9: And markets, and we're in basically all these markets. 880 00:41:42,000 --> 00:41:46,360 Speaker 17: From structured credit, a little bit high yield leverage loans, 881 00:41:46,360 --> 00:41:52,480 Speaker 17: obviously private credit, distressed on a cycle basis. And the 882 00:41:52,520 --> 00:41:55,960 Speaker 17: one thing I would say about distressed is is that. 883 00:41:56,800 --> 00:42:02,720 Speaker 9: I think that market today if you really think about distress. 884 00:42:02,280 --> 00:42:06,200 Speaker 17: In a narrow way, which is by a bond or 885 00:42:06,280 --> 00:42:09,080 Speaker 17: buy a bank loan on the equity on the other side, 886 00:42:09,520 --> 00:42:10,080 Speaker 17: I think. 887 00:42:10,040 --> 00:42:13,120 Speaker 9: Prices in distress. 888 00:42:12,600 --> 00:42:17,319 Speaker 17: Are not really reflective of the environment we're in today. 889 00:42:17,360 --> 00:42:23,359 Speaker 17: They're artificially too high. And when you think about what 890 00:42:23,600 --> 00:42:28,000 Speaker 17: the in the bank loan market today, I think cols own. 891 00:42:29,280 --> 00:42:32,480 Speaker 17: You know, there's a billion seven of clos there's really 892 00:42:32,480 --> 00:42:33,760 Speaker 17: no new inventory. 893 00:42:33,960 --> 00:42:36,560 Speaker 9: They have to be fully invested, and so. 894 00:42:36,480 --> 00:42:40,040 Speaker 17: There's really not any real price transparency or force selling. 895 00:42:40,560 --> 00:42:45,720 Speaker 17: And so I think artificially, structurally, bank loan prices are high. 896 00:42:45,960 --> 00:42:48,000 Speaker 9: You've seen that. You see the tails get a little 897 00:42:48,040 --> 00:42:48,879 Speaker 9: bit wider. 898 00:42:48,560 --> 00:42:51,080 Speaker 17: But you've seen the average bank loan price go from 899 00:42:51,120 --> 00:42:53,919 Speaker 17: ninety four to ninety seven. The tails get a little 900 00:42:53,960 --> 00:42:57,200 Speaker 17: bit larger from under seventy I think, from three percent 901 00:42:57,239 --> 00:43:00,319 Speaker 17: to six percent, but they're not really they're not really 902 00:43:00,320 --> 00:43:01,880 Speaker 17: there's not really distressed. 903 00:43:02,920 --> 00:43:05,640 Speaker 9: And then you overlay the asset. 904 00:43:05,239 --> 00:43:13,440 Speaker 17: Liability flexibility that sponsors and issuers have on those capital structures. 905 00:43:14,160 --> 00:43:18,279 Speaker 17: Recoveries and probably CITYK loans have been quite poor, and 906 00:43:18,560 --> 00:43:21,279 Speaker 17: so you know, you buy something at seventy, you wake 907 00:43:21,360 --> 00:43:24,920 Speaker 17: up there's an asset there's an asset liability trade that 908 00:43:25,000 --> 00:43:27,959 Speaker 17: gets done where a whole bunch of collaudals stripped out 909 00:43:28,440 --> 00:43:31,520 Speaker 17: your loan trades down fifty points, so I just don't 910 00:43:31,920 --> 00:43:35,760 Speaker 17: I'm not sure I see the clear opportunity in distress today, 911 00:43:37,400 --> 00:43:41,759 Speaker 17: given there feels like a technical uplift on prices, and 912 00:43:41,880 --> 00:43:45,200 Speaker 17: there's a lot of flexibility in those documents that create 913 00:43:45,480 --> 00:43:47,480 Speaker 17: a lot of liquidity options for the issuer