WEBVTT - Lordstown's Bankruptcy and AI Regulation 0:00:01.480 --> 0:00:05.760 From Mahard where Innovation, Money and Power Collie in Silicon 0:00:05.880 --> 0:00:06.760 Valley NBN. 0:00:07.120 --> 0:00:11.600 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.360 --> 0:00:28.120 And Ed Ludlow here in San Francisco. Caroline Hyde is 0:00:28.160 --> 0:00:32.519 off today. This is Bloomberg Technology coming up. Lordstown files 0:00:32.640 --> 0:00:36.080 for bankruptcy, shares plunge as the evmakers deal with fox 0:00:36.120 --> 0:00:40.360 Con unravels. We'll bring you the details on that developing story. Plus, 0:00:40.360 --> 0:00:43.960 we'll talk AI and regulation with an MIT researcher who 0:00:44.040 --> 0:00:47.320 recently sat down with President Biden on his trip to 0:00:47.360 --> 0:00:50.080 San Francisco. Will get her takeaways on how the government 0:00:50.159 --> 0:00:54.080 plans to tackle the booming technology. Plus, we sit down 0:00:54.120 --> 0:00:57.480 with famed venture capitalist Gary Town of y Combinator for 0:00:57.560 --> 0:01:01.400 an exclusive interview talking investing the generative AI and how 0:01:01.440 --> 0:01:04.839 his firm is investing in building back the Bay Area. 0:01:05.000 --> 0:01:07.360 When it comes to names in the technology sector, we 0:01:07.400 --> 0:01:12.000 are thinking about lord Town, the news a Chapter eleven filing. 0:01:12.040 --> 0:01:14.720 We're down thirty seven percent right now, we are trading. 0:01:14.880 --> 0:01:18.319 The stock had been halted. The relationship with fox Con, 0:01:18.560 --> 0:01:20.840 which was the contract manufacturer right that was going to 0:01:20.840 --> 0:01:25.640 build Lordstown's electric vehicles. That relationship is disintegrating. Let's get 0:01:25.680 --> 0:01:28.880 the details with Bloomberg Shaun o'caine. He covers everything Evy 0:01:29.080 --> 0:01:31.679 and auto start up for us at Bloomberg News. Sean, 0:01:31.720 --> 0:01:33.640 what is the latest when it comes to Lord's Town. 0:01:35.480 --> 0:01:38.000 Well, we've known this fight was coming for a while 0:01:38.880 --> 0:01:42.800 and now it's here. We have Lordstown Motors basically saying 0:01:42.840 --> 0:01:45.920 that from a minute that they started inking these contracts 0:01:45.920 --> 0:01:48.800 and Fox Hunt to build the vehicles that Lordstown has 0:01:48.800 --> 0:01:51.080 spent the last couple of years trying to build. There, 0:01:51.120 --> 0:01:53.720 it went south that Fox COHNN started renegging on some 0:01:53.800 --> 0:01:56.200 of its promises, that it wasn't living up to its 0:01:56.200 --> 0:02:00.160 funding milestones, that they were basically not showing up to meeting, 0:02:00.400 --> 0:02:03.320 that the Lordstown CEO went to Taiwan to try to 0:02:03.360 --> 0:02:05.760 get some information on the vehicles that they wanted to 0:02:05.760 --> 0:02:08.760 build together and was just basically ghosted at a meeting there. 0:02:08.880 --> 0:02:13.600 So this is a relationship that's been deteriorating pretty quickly 0:02:13.639 --> 0:02:16.800 over the last half year or so, and we've started 0:02:16.800 --> 0:02:18.840 to see signs of that in May when Lordstown really 0:02:18.840 --> 0:02:22.280 started making some noise about this in regulatory filings. But 0:02:22.560 --> 0:02:25.120 now it's really out there in full view, you. 0:02:25.080 --> 0:02:27.800 Know, The next question is is this the end for 0:02:27.880 --> 0:02:31.840 Lord's Town. You know, they've kind of relied on fox 0:02:31.919 --> 0:02:35.520 Con to build their endurance on their behalf. Do they 0:02:35.520 --> 0:02:37.359 have other options to move forward? 0:02:38.800 --> 0:02:42.160 They've been saying for months that they need another outside partner, 0:02:42.720 --> 0:02:46.640 which I always looked at as a pretty big claim, 0:02:46.680 --> 0:02:50.040 considering that Foxcom was supposed to contract manufacturer these vehicles 0:02:50.080 --> 0:02:51.560 for them, and for Lordstown to come out a couple 0:02:51.639 --> 0:02:53.919 months ago and say, hey, we actually still need more 0:02:53.919 --> 0:02:56.960 help from somebody else, another OEM that it was a 0:02:56.960 --> 0:02:59.720 pretty big sign that Foxcom was probably not up to snuff. 0:02:59.760 --> 0:03:02.520 So Bardstown still thinks that it can find a way through. 0:03:02.520 --> 0:03:05.239 It's still going to try to operate, you know, sort 0:03:05.280 --> 0:03:08.000 of the core aspects of the business is going to 0:03:08.000 --> 0:03:09.520 try to keep the lights on while it goes through 0:03:09.520 --> 0:03:13.000 this Chapter eleven proceeding and uses that restructuring process to 0:03:13.000 --> 0:03:14.560 give it a bit more of a solid footing to 0:03:14.639 --> 0:03:17.360 fight fox Con in this lawsuit that it filed. 0:03:17.080 --> 0:03:17.800 Today as well. 0:03:18.600 --> 0:03:19.280 But we'll see. 0:03:19.320 --> 0:03:21.560 I mean, I think the question is have they actually 0:03:21.639 --> 0:03:25.720 developed anything over the last three four years of value 0:03:26.200 --> 0:03:29.640 that would either attract a buyer or attract a partner 0:03:29.680 --> 0:03:31.280 that they've like they've been looking for over the last 0:03:31.280 --> 0:03:33.080 couple of months. Obviously they haven't found anybody. 0:03:33.160 --> 0:03:36.600 So it's a great point. I mean I started this 0:03:36.680 --> 0:03:39.080 year at CES in Las Vegas. As you know, I 0:03:39.160 --> 0:03:42.480 borrowed one of the Endurance pickups. I drove the CEO 0:03:42.600 --> 0:03:46.160 around for about an hour. There was a truck at least, 0:03:46.200 --> 0:03:50.160 you know, an early prototype. What's the widest story here. 0:03:50.240 --> 0:03:52.760 You know, we've always kind of viewed Lord's Town as 0:03:52.800 --> 0:03:55.560 one of the pile of eb startups that we're kind 0:03:55.560 --> 0:03:58.000 of not really sure about, like the viability of their 0:03:58.080 --> 0:03:59.680 business and their technology. 0:04:01.680 --> 0:04:04.360 I mean, the history of the company and the story 0:04:04.360 --> 0:04:06.920 that they were trying to tell was always just very tangled. 0:04:07.120 --> 0:04:10.120 I mean you think back to twenty nineteen and the 0:04:10.160 --> 0:04:12.920 fact that they bought the company from General Motors, or 0:04:12.960 --> 0:04:15.520 the factory from General Motors that they were supposed to 0:04:15.560 --> 0:04:18.320 be operating in. It was announced by President Trump in 0:04:18.360 --> 0:04:20.360 a tweet, and he sort of got it wrong. Without 0:04:20.400 --> 0:04:22.560 the gate. He said that Workhorse, which is another startup 0:04:22.600 --> 0:04:25.320 that was going to be buying the factory, and this 0:04:25.360 --> 0:04:28.320 company was really spun out of Workhorse. There was always 0:04:28.360 --> 0:04:31.400 this weird relationship between it and Workhorse. It was licensing 0:04:31.440 --> 0:04:33.720 ip from Workhorse to build this vehicle. It was always 0:04:33.760 --> 0:04:37.280 this sort of tortured product. And yeah, they were able 0:04:37.320 --> 0:04:38.839 to get to the point where they were making a 0:04:38.839 --> 0:04:40.839 few of them with fox gone, but they were never 0:04:40.880 --> 0:04:42.599 able to get to the point where they were able 0:04:42.600 --> 0:04:46.560 to get that cost under the MSRP that they were 0:04:46.560 --> 0:04:48.719 trying to promise, and even the MSRP had gone up 0:04:48.760 --> 0:04:52.080 over time. They were originally targeting a lower MSRP, and 0:04:52.640 --> 0:04:54.320 they just got to the point where, yeah, they had 0:04:54.320 --> 0:04:56.080 a vehicle, but it was really not one that was 0:04:56.080 --> 0:04:58.880 ever going to scale by their own admission. So that's 0:04:58.880 --> 0:05:01.000 why they started looking for out i'd help, and they 0:05:01.040 --> 0:05:04.359 clearly needed that outside help because Foxcom wasn't able or 0:05:04.360 --> 0:05:06.400 willing to live up to its end of the bargain. 0:05:06.520 --> 0:05:09.400 So I think now looking forward, aside from what's going 0:05:09.440 --> 0:05:11.440 to happen with Lordstown, this just really raises a lot 0:05:11.440 --> 0:05:13.880 of questions about what fox Conn is going to try 0:05:13.880 --> 0:05:16.560 to do for EVS in the US. It's got big 0:05:16.600 --> 0:05:19.599 ambitions for that factory in Ohio, but right now we 0:05:19.640 --> 0:05:22.640 see Lordstown filing for Chapter eleven bankruptcy. One of the 0:05:22.640 --> 0:05:24.679 other tenants that's supposed to be in there working. Fox 0:05:24.760 --> 0:05:28.800 Cohn had its back merger dissolved earlier this month, and 0:05:28.839 --> 0:05:31.960 Fisker has already delayed its second vehicle with fox con 0:05:32.000 --> 0:05:34.479 in that building. So that's three out of four partners 0:05:34.520 --> 0:05:36.920 already that are seeing trouble with foxtun in that building. 0:05:37.839 --> 0:05:40.160 All right, Bloomberg Sean o'caine on the ev beat. One 0:05:40.200 --> 0:05:44.479 of the top stories on Bloomberg technology this Tuesday. Thank you. 0:05:44.520 --> 0:05:47.080 The other top story and kind of activity we're seeing 0:05:47.120 --> 0:05:50.040 is in the crypto space. US based payments and crypto 0:05:50.080 --> 0:05:54.560 firm Circle closely watching regulatory developments in Hong Kong after 0:05:54.600 --> 0:05:57.520 the territories new crypto rules went into effect. We sat 0:05:57.560 --> 0:06:02.520 down with its chairman and CEO to discuss. 0:06:00.960 --> 0:06:04.840 All around the world, every major market, stable coin laws 0:06:04.839 --> 0:06:07.440 are coming into place, and I think what that signifies 0:06:07.560 --> 0:06:11.279 is that this kind of digital currency, these fiat linked 0:06:11.320 --> 0:06:14.880 digital currencies, are about to become a part of the 0:06:14.920 --> 0:06:17.440 mainstream global financial system. 0:06:18.040 --> 0:06:21.680 Elsewhere, we're seeing activity in bitcoin and bitcoin cash. And 0:06:21.760 --> 0:06:25.360 guess who's here Bloomberg Shnali Bassk with the crypto beat. 0:06:25.560 --> 0:06:30.440 Let's start with Bitcoin gap cash, right, it's basically doubled 0:06:30.480 --> 0:06:32.760 in value over a seven day period. It's the kind 0:06:32.760 --> 0:06:35.719 of spin off. Why what's happening? 0:06:35.960 --> 0:06:38.080 There are a few things. One, remember bitcoin cash is 0:06:38.120 --> 0:06:40.680 in fixed supply and it is now being traded on 0:06:40.760 --> 0:06:44.479 the new exchange that was started by the backing of 0:06:44.640 --> 0:06:48.320 Citadel Securities and also a fidelity in large players on 0:06:48.360 --> 0:06:51.000 Wall Street, And so you do seem some activity here 0:06:51.040 --> 0:06:54.039 and they are trading only really four assets here, it's bitcoin, 0:06:54.120 --> 0:06:55.719 either lightcoin, and bitcoin cash. 0:06:55.880 --> 0:06:57.120 So oere Bitcoin in. 0:06:57.080 --> 0:06:59.920 The last seven days ed has risen less than thirteen percent. 0:07:00.400 --> 0:07:04.400 Bitcoin cash has risen almost one hundred and thirteen percent, 0:07:04.760 --> 0:07:07.719 so a very meaningful rise there. But remember it is 0:07:07.760 --> 0:07:12.440 not traded as widely as Bitcoin is in particular, so 0:07:12.520 --> 0:07:14.400 you would see a bigger jump there. 0:07:14.600 --> 0:07:16.360 Then you would see a bitcoin. 0:07:16.000 --> 0:07:19.120 For example, that is a largest cryptocurrency and is trading 0:07:19.440 --> 0:07:23.600 at more than thirty thousand dollars. And remember that thirty 0:07:23.640 --> 0:07:26.240 thousand level. We have been there for about a week 0:07:26.320 --> 0:07:29.480 or so now pretty much since we have seen that 0:07:29.600 --> 0:07:33.280 kind of black Rock filing for a spot ETF giving 0:07:33.320 --> 0:07:36.520 a lot more institutional support to some of these crypto assets. 0:07:37.160 --> 0:07:39.520 Well, speaking of the headline, which caught my eye and 0:07:39.800 --> 0:07:42.360 moved the needle in terms of the energy we saw 0:07:42.400 --> 0:07:45.960 in bitcoin in Tuesday's US morning session was the block 0:07:46.040 --> 0:07:50.120 reporting that Fidelity is preparing to submit a spot big 0:07:50.200 --> 0:07:52.160 Bitcoin ETF filing. What do we know about that? 0:07:52.320 --> 0:07:53.800 Something that's interesting if you take a look at the 0:07:53.800 --> 0:07:57.240 movement here. You saw a pretty significant rise in Bitcoin 0:07:57.280 --> 0:08:00.440 after the black Rock ETF filing, which coin basically the 0:08:00.480 --> 0:08:02.840 custodian of the bitcoin assets as well. But now the 0:08:02.880 --> 0:08:07.240 block reporting Fidelity gives you another big investing giant behind 0:08:07.480 --> 0:08:10.520 the weight of crypto and this idea here that there 0:08:10.520 --> 0:08:13.200 could be support even from US regulators to get this 0:08:13.400 --> 0:08:16.360 done in fuller form. We have plenty of ETFs when 0:08:16.360 --> 0:08:19.080 it comes to the future markets of futures markets in 0:08:19.120 --> 0:08:22.840 the crypto world, but to have this much institutional support 0:08:23.120 --> 0:08:26.840 behind a spot ETF shows you that perhaps the biggest 0:08:26.960 --> 0:08:30.720 of Wall Street giants are getting on the bandwagon here 0:08:30.760 --> 0:08:33.280 when it comes to crypto and the idea of getting 0:08:33.320 --> 0:08:35.920 regulatory support behind it. We know that there are many 0:08:35.920 --> 0:08:39.720 many applications in the sidelines here, and the question is 0:08:39.800 --> 0:08:42.160 at what point do those become reality and how much 0:08:42.160 --> 0:08:43.600 more money can that really draw. 0:08:43.480 --> 0:08:44.160 Into the system. 0:08:45.200 --> 0:08:49.000 Bloomberg Shnali Basek on the crypto beat here on Bloomberg Technology, 0:08:49.040 --> 0:08:51.920 Thank you so much. Now coming up, the Biden administration 0:08:52.040 --> 0:08:56.200 is taking steps to better understand and regulate artificial intelligence. 0:08:56.240 --> 0:08:59.560 We're going to talk to AI researcher doctor joy Bola 0:08:59.640 --> 0:09:02.800 Weeni about the panel and get her view on the 0:09:02.920 --> 0:09:06.600 risks and rewards of using AI. Just really interesting reaction 0:09:06.679 --> 0:09:09.760 to her conversation with President Briden. As we had to break. 0:09:09.800 --> 0:09:13.480 We're also watching shares of Snowflake, the software company announcing 0:09:13.480 --> 0:09:17.200 an AI related partnership with in Nvidia that will enable 0:09:17.240 --> 0:09:21.800 businesses to create customized generatorve AI apps using their own 0:09:21.840 --> 0:09:25.040 proprietary data. Having a positive effect to the upside up 0:09:25.080 --> 0:09:27.560 three percent is we had to break. Here's what RBC's 0:09:27.600 --> 0:09:32.200 laur Calvacina had to say about the NASDAK earlier today, thinkingvaluations, 0:09:32.240 --> 0:09:35.720 this is Bloomberg, I would still stick with tech names. 0:09:35.800 --> 0:09:38.840 I do think that NASDAK is getting a little bit overbought. 0:09:39.440 --> 0:09:41.679 If you look at the CFTC data, we're hitting new 0:09:41.720 --> 0:09:45.200 highs on NASDAK mini positioning that Beings said, I don't 0:09:45.200 --> 0:09:47.040 think you have to sort of throw all the growth 0:09:47.040 --> 0:09:50.040 stocks out at this point. A sector like communication services 0:09:50.080 --> 0:09:52.400 where a lot of the Internet names are those earnings 0:09:52.440 --> 0:09:55.120 revisions are starting to weaken. They're actually staying stronger in 0:09:55.160 --> 0:10:06.960 tech property. 0:10:07.000 --> 0:10:10.760 Oars official intelligence startups stability AI has lost at least 0:10:10.760 --> 0:10:14.200 two top executives in recent weeks. That includes its head 0:10:14.240 --> 0:10:17.520 of research and chief operating officer. The departure has come 0:10:17.840 --> 0:10:22.359 the same month that an article Informs criticize the startups. 0:10:22.520 --> 0:10:25.600 Stability joined us to discuss more is the person that 0:10:25.679 --> 0:10:28.880 broke that story, Bloomberg's Rachel met Rachel. 0:10:28.920 --> 0:10:29.320 What do we know? 0:10:30.720 --> 0:10:34.079 Well, we know that David ha who is stability AI's 0:10:34.120 --> 0:10:38.480 head of research, left recently, and we also know that 0:10:39.080 --> 0:10:42.319 Reren Itto, who had been the company's chief operating officer, 0:10:42.760 --> 0:10:43.439 also left. 0:10:43.760 --> 0:10:48.920 Stability told me that David had left. Sources had told me. 0:10:48.880 --> 0:10:52.240 That David had left on his own, as he had resigned. 0:10:53.000 --> 0:10:58.880 Stability CEO Emad Mustak told me that Wren actually had been, 0:10:58.960 --> 0:10:59.960 in his words, leg. 0:11:02.200 --> 0:11:06.599 Interesting. You very recently spoke with an ad at the 0:11:06.600 --> 0:11:11.040 Bloomberg Technology Summit. I give our audience a sense of 0:11:11.080 --> 0:11:13.240 what's going on with this company. They're kind of seen 0:11:13.280 --> 0:11:16.480 as a leader in the field. But you know, despite 0:11:16.480 --> 0:11:19.920 the name stability AI, there are some issues that investors 0:11:19.920 --> 0:11:24.000 as well are concerned about. Yeah, that's true. 0:11:24.200 --> 0:11:27.640 The name has inspired unfortunately a few jokes on Twitter 0:11:27.679 --> 0:11:30.840 in the last twenty four hours. Is it stable or 0:11:30.920 --> 0:11:33.520 it's not so stable as some people are saying. I mean, 0:11:33.559 --> 0:11:37.120 the fact is that some people have had really short 0:11:37.120 --> 0:11:41.480 tenures at the company, and you could see how that 0:11:41.679 --> 0:11:44.720 might concern people on the outside. I'm aren't sure what's happening. 0:11:45.040 --> 0:11:47.200 On the other hand, it is true that I'm often 0:11:47.440 --> 0:11:50.439 with a fast growing, early stage company, which this is. 0:11:50.840 --> 0:11:53.319 You might have some executive turnover for a bunch of 0:11:53.400 --> 0:11:56.679 different reasons, right Perhaps you want to bring in more 0:11:56.679 --> 0:12:00.600 experienced leadership or different leadership, and sometimes things just work out. 0:12:01.400 --> 0:12:05.120 So right now, you know, we're looking into, well, what 0:12:05.240 --> 0:12:06.960 really happened here and what's going. 0:12:06.840 --> 0:12:07.760 To happen going forward? 0:12:08.600 --> 0:12:11.280 All right, Bloomberg's Rachel Met the latest reporting there from 0:12:11.280 --> 0:12:14.800 Bloomberg Technology and what's happening in the AI space. Let's 0:12:14.800 --> 0:12:18.440 stick with AI and talk about regulation. Doctor Joy boll 0:12:18.480 --> 0:12:21.640 And Weeny is the founder of the Algorithmic Justice League 0:12:21.920 --> 0:12:25.000 and an AI researcher at MIT. Just last week, she 0:12:25.120 --> 0:12:29.120 sat with President Biden to discuss artificial intelligence and joins 0:12:29.160 --> 0:12:31.760 US now from New York. We'll get to that conversation 0:12:31.840 --> 0:12:34.600 with President Biden in a moment. You listen there to 0:12:34.640 --> 0:12:37.640 what Rachel had to say. How do you see the 0:12:37.760 --> 0:12:41.360 pace of innovation right now in AI startups? And does 0:12:41.400 --> 0:12:44.199 it trouble you how quickly some of these companies are 0:12:44.240 --> 0:12:46.160 moving and then changing direction. 0:12:47.280 --> 0:12:50.600 Yes, I am extremely troubled with how quickly we are 0:12:50.679 --> 0:12:55.560 releasing generative AI systems without the transparency to know where 0:12:55.600 --> 0:12:59.720 the data is coming from. And also we continue to 0:12:59.760 --> 0:13:05.360 see data being taking without consent, without compensation, and you're 0:13:05.400 --> 0:13:11.520 going to continue to see increasing lawsuits against companies that 0:13:11.679 --> 0:13:15.440 are built on what some would say is stolen data. 0:13:15.679 --> 0:13:19.679 You had Meta Facebook settle six hundred and fifty million 0:13:19.840 --> 0:13:24.080 dollars when it came to violating the bip UP Biometric 0:13:24.200 --> 0:13:28.000 Information Privacy Act of Illinois. So I think it's extremely 0:13:28.679 --> 0:13:32.640 risky for companies to be building on unstable foundations. 0:13:33.559 --> 0:13:36.560 Doctor Joy, What were the specifics of your discussion with 0:13:36.640 --> 0:13:40.520 President Biden? Yes, artificial intelligence, but what did he want 0:13:40.559 --> 0:13:40.839 to know? 0:13:42.000 --> 0:13:42.120 So? 0:13:42.440 --> 0:13:46.560 I was very encouraged by how engaged President Biden was 0:13:46.800 --> 0:13:50.640 at the roundtable, and we started off discussing the possibilities 0:13:50.720 --> 0:13:56.040 of AI for healthcare for education, but quickly focused on 0:13:56.280 --> 0:14:00.440 real world harms of AI, and so I focused on 0:14:00.640 --> 0:14:05.960 racial bias, gender bias, and known false matches that have 0:14:06.120 --> 0:14:09.760 led to false arrests, such as the case of Robert Williams, 0:14:09.760 --> 0:14:12.880 who was arrested in front of his two young daughters 0:14:13.200 --> 0:14:16.840 and his wife due to faulty AI system. So that 0:14:17.000 --> 0:14:20.200 was certainly a top of mine. I also think there's 0:14:20.200 --> 0:14:24.040 an opportunity for the US to lead on biometric rights, 0:14:24.080 --> 0:14:28.480 but right now we're going in the opposite direction. Last 0:14:28.480 --> 0:14:33.800 week we had EU lawmakers push forward the EUAI Act, 0:14:33.880 --> 0:14:37.000 which has a provision that bans the use of live 0:14:37.120 --> 0:14:41.560 facial recognition in public places. While this is happening here 0:14:41.600 --> 0:14:45.320 in the US, we have the TSA rolling out domestic 0:14:45.440 --> 0:14:49.280 facial recognition, and most people don't even know that they 0:14:49.320 --> 0:14:52.080 can opt out. So that's why we're doing the TSA 0:14:52.200 --> 0:14:56.200 scorecard fly dot AJL dot org to actually hear from travelers. 0:14:56.680 --> 0:15:00.400 Was their notice, was their consent, was their signage? Happened 0:15:00.400 --> 0:15:02.480 if you try to opt out? Could you actually opt 0:15:02.520 --> 0:15:06.920 out without consequences? So we certainly discussed where the US 0:15:07.000 --> 0:15:10.360 could lead when it comes to biometrics rights. 0:15:12.160 --> 0:15:16.040 Dr Joy It's interesting the comparison between the European Union 0:15:16.080 --> 0:15:19.480 and what we see in the United States. Did President 0:15:19.480 --> 0:15:22.520 Biden give you any sort of indicational pledge that the 0:15:22.640 --> 0:15:25.920 US will kind of be more active in regulating or 0:15:25.920 --> 0:15:29.160 at least acting on a framework in terms of god 0:15:29.240 --> 0:15:31.840 rails for artificial intelligence technology. 0:15:32.280 --> 0:15:35.160 Well, something that I was encouraged to see last year 0:15:35.200 --> 0:15:37.960 from the Biden Harris administration was the release of a 0:15:38.000 --> 0:15:40.800 blueprint from an AI Bill of Rights. And I think 0:15:40.920 --> 0:15:46.200 that's exactly the way the US should approach regulating AI right, 0:15:46.240 --> 0:15:48.960 which is a rights based framework, and so here you 0:15:48.960 --> 0:15:54.920 would have protection. You would have specific protections against algorithmic discrimination. 0:15:55.040 --> 0:15:58.760 There would be notice and explanation, there would be privacy 0:15:58.880 --> 0:16:02.680 when it comes today, and consent, and these systems would 0:16:02.680 --> 0:16:05.360 have to be shown to be safe and effective. In 0:16:05.400 --> 0:16:09.200 the case of Robert Williams being falsely arrested, the system 0:16:09.280 --> 0:16:12.640 wasn't even effective. But even if we had more effective 0:16:12.960 --> 0:16:17.240 biometric systems, this then can lead to mass state surveillance, 0:16:17.280 --> 0:16:19.760 which is not the society we want to have here 0:16:19.800 --> 0:16:20.840 in the United States. 0:16:22.400 --> 0:16:25.560 At MIT, tell me about your research. What are you 0:16:25.600 --> 0:16:28.280 focused on. So my research. 0:16:27.880 --> 0:16:32.520 Looks into bias in various types of AI systems, So 0:16:32.680 --> 0:16:35.960 probably most known for the gender Shades paper, which showed 0:16:36.240 --> 0:16:40.520 racial bias and gender bias in commercially sold projects products 0:16:40.600 --> 0:16:46.800 from IBM, Microsoft. Later on we also did Amazon as well. 0:16:47.080 --> 0:16:49.960 Right now, with the Algorithmic Justice League, we're focused on 0:16:50.240 --> 0:16:55.080 real world harms. How are people experiencing AI systems being 0:16:55.200 --> 0:16:59.680 used for access to government services? So, for example, we 0:16:59.720 --> 0:17:03.720 know that the IRS put on board id ME as 0:17:03.760 --> 0:17:08.679 a way of accessing basic tax information. But we launched 0:17:08.680 --> 0:17:11.520 a campaign and we heard from many people saying that 0:17:11.560 --> 0:17:14.480 they were having so many different issues, not just from 0:17:14.520 --> 0:17:17.879 the technical side, but also from a privacy side. And 0:17:17.960 --> 0:17:21.000 when you have a company that says to use our system, 0:17:21.200 --> 0:17:24.359 you waive your right to sue, but there's no other 0:17:24.400 --> 0:17:27.800 way to access that government service. We are moving in 0:17:27.880 --> 0:17:30.640 the wrong direction, but it's not too late to course. 0:17:30.440 --> 0:17:35.600 Correct, doctor Joy. The core of your research and your 0:17:35.720 --> 0:17:39.439 role is looking at the societal risks of AI. But 0:17:39.520 --> 0:17:43.440 how do you yourself use artificial intelligence tools? Would you say 0:17:43.440 --> 0:17:47.800 that you are pro AI is as a tool to 0:17:47.920 --> 0:17:49.000 advance mankind? 0:17:50.320 --> 0:17:55.520 I am optimistic about using ethnical AI systems, and what 0:17:55.560 --> 0:17:58.600 I try to do is say are the AI systems 0:17:58.680 --> 0:18:01.159 that I would like to see use built on an 0:18:01.240 --> 0:18:04.680 ethical pipeline, and if not, are there ways we can 0:18:05.160 --> 0:18:08.840 shift that. I'm very excited. For example, with what we're 0:18:08.840 --> 0:18:13.360 seeing with AI and healthcare. There's a startup called bloomer 0:18:13.440 --> 0:18:17.320 Tech where they've identified a major health gap which is 0:18:17.600 --> 0:18:20.760 about one in three women die of cardiovascular disease, but 0:18:20.840 --> 0:18:24.800 less than a quarter of research participants are women when 0:18:24.840 --> 0:18:27.960 it comes to actually studying the disease, so we have 0:18:28.040 --> 0:18:31.840 a very male centric model of heart disease, and this 0:18:31.880 --> 0:18:35.440 does mean that women have worse outcomes. So they've developed 0:18:35.440 --> 0:18:39.800 this innovation of smart fabrics that can give you digital biomarkers, 0:18:40.119 --> 0:18:43.480 and they are also addressing this data gap because there's 0:18:43.520 --> 0:18:46.760 such a lack of data when it comes to women's 0:18:47.000 --> 0:18:50.840 heart health. So those sorts of areas, I'm very excited 0:18:50.960 --> 0:18:55.199 about the possibilities where AI isn't taking away livelihoods but 0:18:55.320 --> 0:18:57.360 improving a life outcomes. 0:18:58.400 --> 0:19:02.240 Doctor Joy BOLLAMWENI reflect on that meeting with President Biden 0:19:02.240 --> 0:19:04.000 here in San Francisco last week. Thank you so much 0:19:04.000 --> 0:19:14.920 for your time that in New York. All right, time 0:19:14.960 --> 0:19:18.040 for talking tech. First up, India's buy dju is talking 0:19:18.080 --> 0:19:22.200 with prospective new shareholders for a one billion dollar fundraising round, 0:19:22.200 --> 0:19:26.080 seeking delay investors who want to clip its founder's control. 0:19:26.160 --> 0:19:30.280 The education tech firm is offering sweeteners to win over newbackers, 0:19:30.520 --> 0:19:35.959 including preferential treatment in the case of liquidation. Plus. Baidu's 0:19:36.040 --> 0:19:40.120 chat GBT style service called Ernie has outperformed open ai 0:19:40.280 --> 0:19:43.879 seminal product on several measures in China. That's according to 0:19:43.920 --> 0:19:47.040 a statement from China's search leader, who implies the latest 0:19:47.040 --> 0:19:50.240 dis seration of Baidu's foundation model won't have to compete 0:19:50.240 --> 0:19:54.720 with open Ai directly in China. A Meta has quadrupled 0:19:54.720 --> 0:19:58.000 the number of companies using it's WhatsApp business tool in 0:19:58.040 --> 0:20:00.359 the past three years. The app now has more than 0:20:00.359 --> 0:20:03.919 two hundred million customers, up from fifty million in the 0:20:03.960 --> 0:20:06.560 middle of twenty twenty, making headway in a push to 0:20:06.600 --> 0:20:11.439 generate more money from the popular messaging service. Right coming up, 0:20:11.440 --> 0:20:13.880 we're going to continue our conversation and all things artificial 0:20:13.880 --> 0:20:17.760 intelligence and speak to one entrepreneur in the space, Joseph Miller. 0:20:17.800 --> 0:20:20.760 He's a former Bridgewater hedge Fund employee. He joins us 0:20:20.800 --> 0:20:23.600 next to discuss the launch of his new app, Quiver, 0:20:23.880 --> 0:20:28.919 which uses AI and the blockchain for digital identity loads. 0:20:28.960 --> 0:20:31.520 More to come here on Bloomberg Technology. From here in 0:20:31.560 --> 0:20:35.880 San Francisco, focus NAI and don't forget Gary Tan's coming up. 0:20:36.200 --> 0:20:38.520 Why Combinator That is one you don't want to miss. 0:20:38.760 --> 0:20:41.520 A gloomy day in San Francisco, but a beautiful show. 0:20:41.600 --> 0:20:54.239 This is Bloomberg Technology. Welcome back to Bloomberg Technology. I'm 0:20:54.320 --> 0:20:56.760 Ed Ludlow in San Francisco. Let's check in on the markets, 0:20:56.800 --> 0:21:00.520 and it is the technology sector that is powering this rebound. 0:21:00.520 --> 0:21:02.560 We're seeing inequities and as that one hundred up by 0:21:02.560 --> 0:21:05.679 more than a percentage point follows Friday and Monday session 0:21:05.680 --> 0:21:07.879 that gave us the biggest two day drop on the 0:21:07.960 --> 0:21:10.600 NAS that one hundred going back to March, even as 0:21:10.600 --> 0:21:12.840 Bonyield's kind of pushing higher up three basis points on 0:21:12.880 --> 0:21:16.800 the US tenure yield three point seventy five percent. In crypto, 0:21:16.960 --> 0:21:19.920 the story has been about bitcoin cash, this spin off 0:21:20.080 --> 0:21:23.439 from twenty seventeen. It was at a time where you know, 0:21:23.520 --> 0:21:26.200 software engineers were banking on anything with bitcoin in the 0:21:26.280 --> 0:21:28.880 name being a success. But it has become an old 0:21:28.920 --> 0:21:32.560 coin that's become popular. A one hundred percent gain in 0:21:32.640 --> 0:21:35.080 a sort of seven to nine day span, and we 0:21:35.119 --> 0:21:37.560 continue to push higher one point eight percent, trading at 0:21:37.600 --> 0:21:40.640 the highest level since May of twenty twenty two. More 0:21:40.640 --> 0:21:43.840 headlines this morning giving energy to the crypto space as 0:21:43.880 --> 0:21:47.080 well in terms of single name movers, that there's no 0:21:47.280 --> 0:21:50.479 huge focus on any one theme. We are looking at 0:21:50.480 --> 0:21:54.080 palabalto Networks hit a fresh record high three point five percent, 0:21:54.160 --> 0:21:56.480 gain two hundred and fifty two dollars a share in 0:21:56.520 --> 0:21:58.720 the AI space and now to the downside, but we've 0:21:58.800 --> 0:22:01.760 kind of clawed black some of the declines as Alphabet 0:22:01.840 --> 0:22:05.080 parent of Google Burnstein out with a note saying this 0:22:05.280 --> 0:22:07.800 was a stock that was like a warm hug, but 0:22:07.880 --> 0:22:10.000 it's time to sit on the sidelines because there are 0:22:10.080 --> 0:22:13.240 some risks about the shift from generator to generative AI 0:22:13.359 --> 0:22:16.520 that could impact its ad streams in the near term. 0:22:17.240 --> 0:22:19.560 Sit on the sidelines, but hoping to come back to it. 0:22:19.600 --> 0:22:21.160 I thought that was an interesting note, but it has 0:22:21.200 --> 0:22:23.840 impacted the shares had been much lower, now off by 0:22:23.880 --> 0:22:27.320 two tenths of one percent. Now sticking with generative AI. 0:22:27.600 --> 0:22:31.160 Zoo is rolling out access to Microsoft's Azure Open AI 0:22:31.280 --> 0:22:36.040 service this week, allowing forty five thousand employees to test 0:22:36.080 --> 0:22:38.720 out the product in its core lending unis. The firm 0:22:38.760 --> 0:22:42.080 is seeking ideas from workers in Japan on how to 0:22:42.200 --> 0:22:46.080 best use the technology. All right, let's stick with the 0:22:46.119 --> 0:22:49.399