WEBVTT - Montana Bans TikTok and Alibaba's Spinoff 0:00:01.400 --> 0:00:05.720 From Mahard. We're Innovations, Money and Power Collie in Silicon 0:00:05.800 --> 0:00:06.680 Vallet NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow 0:00:25.000 --> 0:00:27.600 and Karen hide A Bloomberg's World headquarters in New York, 0:00:27.640 --> 0:00:30.400 and Ludlow is off on a well earned vacation as 0:00:30.440 --> 0:00:35.040 a Bloomberg Technology Coming up, TikTok banned in Montana. It 0:00:35.159 --> 0:00:37.520 marks the first US state to sign a law banning 0:00:37.520 --> 0:00:40.479 the social media app across all phones. Will discuss the 0:00:40.560 --> 0:00:44.440 legal and logistical implications of the move past. In today's 0:00:44.520 --> 0:00:46.840 VC Spotlight, we speak with a speak with an early 0:00:46.920 --> 0:00:50.920 AI investor, Serilgo, the founder at VC firm Conviction and 0:00:51.000 --> 0:00:54.040 former general partner at Graylock, and we bring you all 0:00:54.120 --> 0:00:56.480 the tech stocks. Moving on earnings, we take a deep 0:00:56.480 --> 0:00:58.480 dive into Ali Barbara as the e commerce grant pans 0:00:58.480 --> 0:01:00.880 as spinoff for its club business. 0:01:00.480 --> 0:01:01.120 And much more. 0:01:01.240 --> 0:01:03.760 First, let's check in on these public markets, because once 0:01:03.800 --> 0:01:06.720 again there's real risk on sentiment around the Nasdaq. We're 0:01:06.720 --> 0:01:08.720 off more than a percentage point at the moment to 0:01:08.760 --> 0:01:10.959 the races one hundred and thirty four points to the upside. 0:01:11.080 --> 0:01:12.679 Maybe a bit of a relief, it seems as though 0:01:12.680 --> 0:01:15.320 maybe that debt ceiling debarcle. We're inching closer to some 0:01:15.360 --> 0:01:17.319 sort of respite to that with. Of course, though, have 0:01:17.360 --> 0:01:19.600 a strong jobs number coming out, and that is what's 0:01:19.600 --> 0:01:22.720 affecting the two year yield up some five six basis points. 0:01:22.720 --> 0:01:24.840 We're still thinking about whether the Federal Reserve really has 0:01:24.880 --> 0:01:27.759 to curtail the overall strength of the economy, the inflation 0:01:28.160 --> 0:01:30.440 some FED speak speaking to that today, we're looking at 0:01:30.480 --> 0:01:32.679 Bitcoin currently off by nine tens and percent. That's because 0:01:32.720 --> 0:01:36.360 basically every single currency pair in FX is also down 0:01:36.440 --> 0:01:38.320 versus the US dollars. We think about where the Federal 0:01:38.360 --> 0:01:40.040 Reserve has to go, let's move it on. It's like 0:01:40.040 --> 0:01:41.800 at some individual movers because ED is out, I'm going 0:01:41.840 --> 0:01:44.280 to play on the micro today. Cisco off by three 0:01:44.319 --> 0:01:46.520 tens percent as they really show some of the draw 0:01:46.680 --> 0:01:49.360 down in spending. Remember this is the company that provides 0:01:49.400 --> 0:01:52.440 equipment for basically networking all our Internet access, and they're 0:01:52.440 --> 0:01:55.040 seeing more than a twenty percent drop in recent business. 0:01:55.040 --> 0:01:57.640 We're seeing Ali Barbar also off by four percent. Doesn't 0:01:57.680 --> 0:02:02.440 manage to ignite that optimist particularly after the reopening of China. 0:02:02.440 --> 0:02:04.920 To a certain degree, they're not managing harnessing that growth, 0:02:04.960 --> 0:02:07.480 particularly in the cloud area, even as we get more 0:02:07.520 --> 0:02:10.000 detail on where they will spin off the groceries unit 0:02:10.080 --> 0:02:12.200 the cloud business as well. We'll dig into that later 0:02:12.240 --> 0:02:14.800 in the show. Netflix interesting look at this rally up 0:02:14.840 --> 0:02:17.800 basically to ten percent. We know why they gave us 0:02:17.840 --> 0:02:19.440 some evidence of the growth that they're seeing in the 0:02:19.480 --> 0:02:22.240 advertising part of the model. They're going out to upfronts 0:02:22.240 --> 0:02:24.440 for the first ever time, basically where they pitch to 0:02:24.520 --> 0:02:27.040 advertise as the where's the content they're coming and people 0:02:27.080 --> 0:02:30.720 really liked what they heard. Relief were up almost ten percent. Meanwhile, though, 0:02:30.800 --> 0:02:33.359 let's really dig into what is the top news agenda 0:02:33.400 --> 0:02:37.200 today in terms of tech. TikTok now officially from January 0:02:37.240 --> 0:02:41.280 first band in Montana setting up a legal battle in 0:02:41.360 --> 0:02:44.440 the state, and the social media company is already facing 0:02:44.480 --> 0:02:46.919 some heavy scrutiny from the United States more broadly in 0:02:47.000 --> 0:02:50.160 terms of its lawmakers joining us some more bluemegs, Alex Borinka, 0:02:50.240 --> 0:02:53.600 and just first dig in on what Montana has said, 0:02:54.000 --> 0:02:55.799 this is going to be incredibly difficult to. 0:02:55.840 --> 0:03:00.400 Enforce, incredibly difficult to enforce. So Montana has said governor 0:03:00.520 --> 0:03:03.360 signed into law a bill that would basically restrict or, 0:03:03.360 --> 0:03:05.880 they say, restrict use of the app, but the owners 0:03:05.880 --> 0:03:09.480 would actually be on TikTok and the app stoor so Google, 0:03:09.720 --> 0:03:12.920 Apple app stores, who would, as they say, be fined 0:03:13.080 --> 0:03:16.200 ten thousand dollars a day for every day that TikTok 0:03:16.360 --> 0:03:19.119 is made available. But it's really unclear from this bill 0:03:19.240 --> 0:03:22.560 how they're actually going to enforce it, and certainly, Caroline 0:03:22.760 --> 0:03:26.800 this bill will face a legal battle. This is a 0:03:26.840 --> 0:03:30.040 state basically kind of making a decision to limit an 0:03:30.080 --> 0:03:33.760 app only within its borders, while the federal government itself 0:03:33.800 --> 0:03:36.160 has been looking at it. But something like this is 0:03:36.520 --> 0:03:40.120 pretty unprecedented. The company has told us that this is 0:03:40.200 --> 0:03:43.600 a regulation on a free speech they have pushed back 0:03:43.640 --> 0:03:47.080 on it. We've actually already seen a group of creators too, 0:03:47.680 --> 0:03:50.040 because this bill was signed in the late hours of 0:03:50.160 --> 0:03:53.440 last night. So certainly a really interesting move by some 0:03:53.720 --> 0:03:57.240 who are pro banning TikTok would say, good job Governor 0:03:57.280 --> 0:04:00.920 of Montana for restricting this on national security concerns. But 0:04:01.080 --> 0:04:04.800 critics of this bill would probably say, hey, why is 0:04:04.840 --> 0:04:08.520 this state kind of getting involved in what should be 0:04:09.040 --> 0:04:10.240 a federal move. 0:04:10.400 --> 0:04:13.320 And maybe this puts the onus back on a federal 0:04:13.360 --> 0:04:16.679 move Alex, but remind us the ways in which TikTok 0:04:16.680 --> 0:04:19.840 has tried to alleviate concerns from a national security perspective 0:04:20.160 --> 0:04:23.720 is by saying, look, we're working with Oracle, We're ensuring 0:04:23.760 --> 0:04:26.839 that the data is in any way being accessed by China. 0:04:26.960 --> 0:04:29.280 Just tell us you did some really deep dive analysis 0:04:29.320 --> 0:04:31.640 on what that deal is with Oracle in the moment. 0:04:32.160 --> 0:04:34.080 Right a callig and I wrote about where it stands 0:04:34.080 --> 0:04:37.720 this deal called Project Texas. Basically, TikTok has put Oracle 0:04:37.800 --> 0:04:40.400 up as this American partner who's going to wall off 0:04:40.480 --> 0:04:43.880 the data for US users to alleviate national security concerns, 0:04:44.160 --> 0:04:47.200 and that process has already started. But what we broke 0:04:47.279 --> 0:04:50.440 this morning is that a large chunk of the really 0:04:50.480 --> 0:04:54.680 ambitious work of Oracle actually reviewing TikTok's code, which is 0:04:54.720 --> 0:04:57.840 pretty unprecedented and being the entity that submits the app 0:04:57.839 --> 0:05:01.239 to the app stores, that work has not yet started, 0:05:01.360 --> 0:05:04.120 even though TikTok has eluded that it has. This is 0:05:04.160 --> 0:05:06.840 all according to a person familiar, and Oracle will not 0:05:07.080 --> 0:05:10.320 start that work unless there's a final agreement in place 0:05:10.360 --> 0:05:12.760 that the government has signed off on. You'll recall there 0:05:12.800 --> 0:05:16.039 is a national security review going on. It's an interagency 0:05:16.200 --> 0:05:19.800 review in DC, and that has stalled because the Justice 0:05:19.839 --> 0:05:23.200 Department has not been happy. So without that moving forward, 0:05:23.200 --> 0:05:28.640 without a final sealed, done dusted, US stamped proposal in 0:05:28.720 --> 0:05:32.320 place or legislation that forces some kind of move, oracle 0:05:32.360 --> 0:05:35.800 will not start doing that really in depth work that 0:05:35.960 --> 0:05:38.640 TikTok has really used to say, Hey, look your stuff 0:05:38.680 --> 0:05:41.400 is safe because we have an American partner actually making 0:05:41.480 --> 0:05:44.200 sure there's no backdoors here for the Chinese government. 0:05:44.600 --> 0:05:47.479 Fascinating. Alex Blerinka, thank you for bringing us the latest. 0:05:47.680 --> 0:05:50.719 It's great reporting and the breaking of that NEUS today. 0:05:50.760 --> 0:05:53.080 Go read it on the terminal and on dot com. Mean, well, 0:05:53.200 --> 0:05:55.359 we've got to dig a little deeper here, Kyl Zavos 0:05:55.400 --> 0:05:57.440 with us. He's George Mason, Professor of the Internet Law 0:05:57.480 --> 0:06:00.000 and also vice president and general council at net Choice. 0:06:00.160 --> 0:06:02.279 Now that's a lobbying group aimed at making the Internet 0:06:02.360 --> 0:06:05.440 safe for free enterprise and free expression. So and hazard 0:06:05.440 --> 0:06:08.320 a guess here, Carl that you're pretty anti what we're 0:06:08.360 --> 0:06:12.840 hearing from the governor and Montanamo broadly today. Yeah, thanks 0:06:12.880 --> 0:06:13.359 for having me on. 0:06:13.560 --> 0:06:15.760 This is something that should scare all of us, because 0:06:15.800 --> 0:06:18.080 this is exactly what we don't want the government to 0:06:18.080 --> 0:06:21.279 do and what the government can't do. It can't decide 0:06:21.320 --> 0:06:24.320 what websites we can visit and what apps we can download. 0:06:24.640 --> 0:06:27.719 Imagine if this government of Montana came out and said 0:06:27.720 --> 0:06:30.160 you can no longer go to Bloomberg dot com. Of 0:06:30.240 --> 0:06:33.080 course everyone would be apoplectic. But that's exactly what we're 0:06:33.080 --> 0:06:35.880 seeing here with TikTok. At the end of the day, 0:06:36.200 --> 0:06:39.440 what we are ultimately going to see is a legal 0:06:39.520 --> 0:06:41.960 challenge on this because this is a clear violation of 0:06:42.000 --> 0:06:44.440 the First Amendment. The government can't ban speech, which is 0:06:44.480 --> 0:06:48.240 exactly what this is. Simultaneously is a clear violation and 0:06:48.240 --> 0:06:50.880 of something called a bill of attainer. It's a legal 0:06:50.960 --> 0:06:54.840 term that we use rarely where you can't criminalize an individual, 0:06:54.839 --> 0:06:57.520 and that's exactly what you're seeing here. So this is 0:06:57.520 --> 0:07:01.520 a slammed don case of unconstitution. But more importantly, it's 0:07:01.560 --> 0:07:06.200 a dangerous precedent against free speech, free expression, and free 0:07:06.320 --> 0:07:09.560 enterprise in the freest nation in the world. 0:07:10.200 --> 0:07:13.200 Remind us why thus far they've been able to ban 0:07:13.280 --> 0:07:14.360 them on government phones. 0:07:16.160 --> 0:07:19.360 Yeah, the bands on government phones. I actually don't have 0:07:19.400 --> 0:07:22.560 any issue with. I'm an employer many employers are watching 0:07:22.600 --> 0:07:25.280 this program right now, and we all have rules and 0:07:25.320 --> 0:07:28.480 restrictions on what our employees can and cannot do on 0:07:28.520 --> 0:07:31.280 their own company devices, and we can say, well, you 0:07:31.320 --> 0:07:33.640 can't go to this website, you can't unload that app, 0:07:33.840 --> 0:07:35.840 And so the government is perfectly free to do that 0:07:36.160 --> 0:07:40.040 for their own employees, federal employees, state employees, local employees. 0:07:40.240 --> 0:07:43.440 In fact, as a taxpayer, I don't see any reason 0:07:43.440 --> 0:07:48.000 why government employees should have TikTok on their government devices, 0:07:48.200 --> 0:07:51.360 because when I'm paying their salaries as a taxpayer, I 0:07:51.400 --> 0:07:54.640 expect them to be working, not producing TikTok videos, not 0:07:54.880 --> 0:07:57.440 watching entertainment videos. So that's why the government can do 0:07:57.440 --> 0:07:59.480 it on their own devices. But it is very different 0:07:59.640 --> 0:08:02.840 from the government then coming and telling me, telling you, 0:08:02.960 --> 0:08:05.760 telling everyone else out there what websites they can visit 0:08:05.800 --> 0:08:09.160 and what apps they can download on their own personal devices. 0:08:09.680 --> 0:08:12.240 So, as you say, and you've come out saying this 0:08:12.280 --> 0:08:15.360 is unconstitutional, TikTok has come out saying that it's against 0:08:15.360 --> 0:08:19.680 free speech. Legal arguments abound, but it does put the 0:08:19.720 --> 0:08:23.000 owners back on the federal government. And what is currently 0:08:23.040 --> 0:08:26.800 being debated by the administration to either ensure that national 0:08:26.840 --> 0:08:30.120 security is preserved or indeed courtail TikTok within the United States. 0:08:30.160 --> 0:08:32.439 More broadly, is there any way that the federal government 0:08:32.480 --> 0:08:38.480 could anactis do you think. 0:08:36.000 --> 0:08:38.480 The thing at the federal level is TikTok is kind 0:08:38.520 --> 0:08:42.080 of a distraction, it's fig leaf. A lot of lawmakers 0:08:42.320 --> 0:08:46.160 don't want to have an important, necessary discussion on the 0:08:46.320 --> 0:08:50.880 US dependency on China, national security, cybersecurity, or privacy. But 0:08:50.920 --> 0:08:54.720 there is legislation today before Congress that they could look 0:08:54.760 --> 0:08:58.160 to do. They could create a national standard on cybersecurity, 0:08:58.360 --> 0:09:01.640 they could look to create a national standard on privacy laws. 0:09:01.720 --> 0:09:03.680 And what this will do is it will protect all 0:09:03.720 --> 0:09:07.720 Americans regardless of whether an attack is coming from outside 0:09:07.760 --> 0:09:10.679 the US or from within. Let's remember some of the 0:09:10.720 --> 0:09:14.160 biggest data breaches in US history came from inside the US, 0:09:14.200 --> 0:09:17.480 whether it's solar winds in Texas, whether it is the 0:09:17.520 --> 0:09:21.360 hack last month of the health information of members of Congress, 0:09:21.679 --> 0:09:25.280 or whether it was a government employee deciding to dump 0:09:25.320 --> 0:09:27.920 all of our secrets about Ukraine under the Internet to 0:09:27.920 --> 0:09:30.480 impress their friends. So we need to harden our critical 0:09:30.480 --> 0:09:35.520 infrastructure regardless and focusing on one business, one entity, one 0:09:35.600 --> 0:09:38.800 nation distracts us from the important work that Congress must 0:09:38.880 --> 0:09:43.480 do to harden these critical infrastructures and make us all safe. 0:09:44.080 --> 0:09:47.880 More broadly, when you're looking abroad at what's occurring, we 0:09:47.920 --> 0:09:51.520 are seeing other countries UK, for example, also banning on 0:09:51.640 --> 0:09:55.280 government devices. Is there anywhere that is thinking that they 0:09:55.320 --> 0:09:57.400 have to curtail certain social media apps because in this, 0:09:57.679 --> 0:10:01.440 of course discussion that's been leveled by Montana, they don't 0:10:01.440 --> 0:10:05.960 just mention TikTok, they also mention other bytedn BITEDOWNCE owned apps, 0:10:05.960 --> 0:10:08.719 capcut Lemonade, but also there's Telegram, which they sort of 0:10:08.760 --> 0:10:10.400 for see having a link to Russia. 0:10:12.200 --> 0:10:15.760 So there is certainly one nation that is in the 0:10:15.800 --> 0:10:19.520 business of deciding what websites and what apps it citizens 0:10:19.559 --> 0:10:22.600 can use, and that's China. They have the Great Firewall 0:10:22.920 --> 0:10:26.320 where if the CCP doesn't like what you're saying, the 0:10:26.360 --> 0:10:29.200 citizens can't see it. It's a horrible model for the 0:10:29.200 --> 0:10:31.400 rest of the world. It is the antithesis of what 0:10:31.440 --> 0:10:35.080 America stands for. So I expect the US to lead 0:10:35.120 --> 0:10:40.320 the way to reject bands on speech, reject bands on apps, 0:10:40.800 --> 0:10:45.880 and push the notion that citizens and free people should 0:10:45.880 --> 0:10:48.040 be able to decide what is or is not appropriate 0:10:48.080 --> 0:10:49.839 for them, because at the end of the day, if 0:10:49.880 --> 0:10:52.240 I have concerns about TikTok, I just don't. 0:10:52.360 --> 0:10:54.520 I just won't use it. I'll use something else. 0:10:55.120 --> 0:10:57.440 And that's the freedom of choice. That's the freedom that 0:10:57.480 --> 0:11:00.559 we have here in America, and unfortunately, in Montana, that 0:11:00.640 --> 0:11:03.040 freedom is being taken away from its citizens. 0:11:03.160 --> 0:11:07.080 Very briefly, of course, your associate association members are TikTok, 0:11:07.200 --> 0:11:11.800 but they also Amazon, Airbnb, etc. Meta a number do 0:11:11.840 --> 0:11:16.080 your association members currently feel that regulation in the US 0:11:16.360 --> 0:11:19.240 is working for them or against them? 0:11:19.720 --> 0:11:22.360 You know, across the board, Netchoice is out there fighting 0:11:22.360 --> 0:11:24.720 every single day to plow the field for free expression, 0:11:24.760 --> 0:11:28.000 free enterprise, and we are all behind the notion of 0:11:28.080 --> 0:11:30.599 creating a national standard on things like privacy law or 0:11:30.640 --> 0:11:33.360 cybersecurity law because at the end of the day, what 0:11:33.400 --> 0:11:36.839 that will do is secure Americans and more importantly, it 0:11:36.880 --> 0:11:39.199 will make it easier for Americans to know how their 0:11:39.200 --> 0:11:41.840 privacy is treated, how their data is treated, and for 0:11:41.920 --> 0:11:44.680 businesses out there, it gives them a simple, easy, one 0:11:44.840 --> 0:11:49.760 standard to follow, which drives down costs of compliance and 0:11:49.840 --> 0:11:52.520 makes it easier to spend that money on innovation. We 0:11:52.559 --> 0:11:55.120 need innovation at the speed of technology. Not at the 0:11:55.120 --> 0:11:58.160 speed of government. And that's what we all agree on, and. 0:11:58.080 --> 0:11:59.680 It would say that as we look at AI and 0:11:59.720 --> 0:12:02.400 plan the other things being discussed. Kul so Bo great 0:12:02.440 --> 0:12:04.280 To has some time with the George Mason, Professor of 0:12:04.360 --> 0:12:11.800 Internet Law and of course of net choice. 0:12:14.800 --> 0:12:19.280 This uniquely American innovation ecosystem is still the world's envy, 0:12:19.520 --> 0:12:22.480 and I want us to make it stronger. I've never 0:12:22.600 --> 0:12:26.839 seen rapid gains that we're seeing now with frontier language models. 0:12:26.880 --> 0:12:29.800 As fast we lead, the world is trying to catch up. 0:12:29.920 --> 0:12:32.080 We're still ahead. Let's continue. 0:12:32.720 --> 0:12:35.520 Of course you recognize him. Former Google CEO there, Eric Schmidt, 0:12:35.559 --> 0:12:39.480 testifying a house hearing yesterday which fun Love was focused 0:12:39.480 --> 0:12:43.200 on China's embrace of AI for warfare. He also warned that, look, 0:12:43.200 --> 0:12:45.319 while the US still has an edge in the key 0:12:45.360 --> 0:12:48.880 areas like AI and quantum computing, China is likely having 0:12:49.000 --> 0:12:52.440 more people working on strategic AI and advises that the 0:12:52.559 --> 0:12:55.760 US must redesign its military to respond to that threat. 0:12:57.080 --> 0:13:01.000 Let's talk more broadly about artificial intelligence, about what feels 0:13:01.440 --> 0:13:03.439 like a race, whether it's between US and China, or 0:13:03.520 --> 0:13:06.800 indeed company versus company here within the United States as well, 0:13:06.800 --> 0:13:09.960 particularly when it comes to generative AI. Zerogo, Perfect Voice, 0:13:09.960 --> 0:13:12.720 founder of Conviction. It's an AI focused VC firm built 0:13:12.800 --> 0:13:15.880 to serve software three point zero companies as you call them, 0:13:16.080 --> 0:13:18.160 And of course you've got a long history with gray 0:13:18.160 --> 0:13:21.199 Lock and sitting on plenty of boards there. I'm interested 0:13:21.600 --> 0:13:25.120 at the moment as to where you're seeing the most 0:13:25.200 --> 0:13:27.480 value being attributed to AI companies. 0:13:29.200 --> 0:13:31.640 Thanks for having me. We are very early in the 0:13:31.679 --> 0:13:35.000 AI revolution, and I think it's a very general technology. 0:13:35.040 --> 0:13:37.760 It's huge potential to improve people's lives and productivity and 0:13:38.280 --> 0:13:44.640 contribute to complex problems in climate and education and science. 0:13:44.840 --> 0:13:45.560 In the near term. 0:13:46.040 --> 0:13:49.720 Some of the areas we're seeing the most immediate value 0:13:49.840 --> 0:13:54.720 include democratization of creative capabilities, so giving everyone the ability 0:13:54.760 --> 0:13:58.120 to generate image and voice and video where you used 0:13:58.160 --> 0:14:01.200 to need to develop creative skills. And trying to give 0:14:01.280 --> 0:14:06.720 experts leverage. So think of companies that enable lawyers to 0:14:06.840 --> 0:14:11.079 do their work more quickly, or data scientists to leverage 0:14:11.280 --> 0:14:14.240 their work for a broader business audience. So we've invested 0:14:14.240 --> 0:14:15.640 in companies like Seek and Harvey. 0:14:15.679 --> 0:14:17.880 In this vein, we're looking at some of your portfolio 0:14:17.880 --> 0:14:21.240 companies there more broadly, and there is of course, the 0:14:21.280 --> 0:14:24.640 minute you start to say leveling the playing field, democratization, 0:14:24.720 --> 0:14:29.000 when it comes to image to voice, copyright concerns come 0:14:29.040 --> 0:14:31.440 to the full How are you seeing the founders that 0:14:31.480 --> 0:14:33.400 you're working with really get ahead of the curve of 0:14:33.440 --> 0:14:34.800 where regulation could come. 0:14:36.240 --> 0:14:36.480 Yeah. 0:14:36.520 --> 0:14:41.240 Absolutely, I think there's a series of tricky issues that 0:14:41.680 --> 0:14:45.360 companies playing in this field need to consider, and that 0:14:45.400 --> 0:14:49.600 includes copyright, includes disinformation, and it includes abuse of these 0:14:49.640 --> 0:14:53.560 technologies by malicious actors, as you'll see with every technology 0:14:53.600 --> 0:14:58.600 tool like the Internet, of course, and so we expect 0:14:58.640 --> 0:15:01.360 when we invest in companies means for founders to think 0:15:01.400 --> 0:15:04.280 about these issues from a responsible AI perspective from the 0:15:04.400 --> 0:15:04.960 very beginning. 0:15:05.320 --> 0:15:07.440 And it's interesting, of course you've been someone who thought 0:15:07.440 --> 0:15:11.040 a lot about Web three and indeed the democratization of 0:15:11.080 --> 0:15:13.920 finance in that way, crypto immediately comes to mind. Some 0:15:14.040 --> 0:15:15.880 people are trying to compare and contrast the way in 0:15:15.880 --> 0:15:19.520 which the AI ecosystem is looking to get ahead of 0:15:19.560 --> 0:15:24.800 regulation or lead start asking for it sooner visa the cryptosphere. 0:15:24.840 --> 0:15:29.000 But is that our own naivety to realize how AI 0:15:29.040 --> 0:15:31.360 has been being built, you know, for decades a lot 0:15:31.400 --> 0:15:33.640 of these big companies and certainly the startups as well. 0:15:33.720 --> 0:15:35.960 We all suddenly feel like it's brand new and shiny 0:15:36.000 --> 0:15:38.560 because we're now touching it as a consumer. But are 0:15:38.600 --> 0:15:40.760 we behind the curve when it comes to regulation or 0:15:40.800 --> 0:15:43.160 we're managing to be at a better pace this time. 0:15:45.280 --> 0:15:47.400 So this may not be a very popular view, but 0:15:47.760 --> 0:15:50.000 I think we actually need to be going faster on 0:15:50.040 --> 0:15:55.600 the regulatory front. That doesn't necessarily mean licensing, for example, 0:15:55.680 --> 0:15:58.960 to train models. I'd be cautious about cementing the concentration 0:15:59.040 --> 0:16:03.480 of power to the few organizations today in allowing them 0:16:03.480 --> 0:16:07.520 to decide who has access. But in terms of the 0:16:07.560 --> 0:16:11.120 governance questions that come about when you have a technology 0:16:11.120 --> 0:16:15.240 that is so general progressing at a rapid speed, that 0:16:15.480 --> 0:16:19.240 justifies anxiety, and it should justify investment from both the 0:16:19.280 --> 0:16:24.040 private sector and academia and policy makers to understand and 0:16:24.080 --> 0:16:27.000 get ahead of the changes that will come in society. 0:16:27.160 --> 0:16:29.160 So I think we're going to need very strong partnership 0:16:29.160 --> 0:16:33.080 between industry and policymakers to reap the benefits of AI 0:16:33.120 --> 0:16:36.680 and mitigate some of the concerns. And we're committed to 0:16:36.680 --> 0:16:39.120 engaging to inform and contribute to that process. 0:16:39.200 --> 0:16:41.880 Yeah, how are you contributing? Do you feel the administration 0:16:42.120 --> 0:16:44.080 and those in power off speaking with the right people 0:16:44.080 --> 0:16:44.800 within this field. 0:16:46.480 --> 0:16:49.320 I think there is a rapid acceleration of engagement from 0:16:49.360 --> 0:16:52.400 both sides over the last few months, and so we've 0:16:52.440 --> 0:16:57.760 been participants in that these are complex issues, right, Managing 0:16:57.840 --> 0:16:59.960 the misuse of AI is something that must be a 0:17:00.040 --> 0:17:03.680 arrived at through an inclusive and democratic process. And it's 0:17:03.720 --> 0:17:06.800 hard because it's also technical, right, if people are hurting 0:17:06.800 --> 0:17:10.200 a lot. But I do think there's an opportunity for 0:17:11.280 --> 0:17:14.760 perhaps pro technology policy making that is, for lack of 0:17:14.800 --> 0:17:20.399 a better term, not just defensive right, protecting against against 0:17:20.440 --> 0:17:23.359 some of the issues that we discussed, but also really 0:17:23.359 --> 0:17:27.840 goes on the offensive, right in that you just showed 0:17:28.400 --> 0:17:31.479 a clip from Eric Schmidt. I think that this is 0:17:31.800 --> 0:17:37.240 relevant from a national security perspective, relevant from a sort 0:17:37.240 --> 0:17:41.879 of economic stability perspective, and also relevant in that, you know, 0:17:42.040 --> 0:17:45.520 be a real shame if some of the sort of 0:17:45.520 --> 0:17:49.560 more ambitious applications of AI in for example, science or 0:17:49.680 --> 0:17:54.800 education were not reached because we didn't get regulation right. 0:17:55.960 --> 0:17:58.320 I'm very excited about there are some companies in our 0:17:58.359 --> 0:18:02.800 portfolio that are in small ways today already contributing to that. 0:18:03.440 --> 0:18:06.000 We have a company called co Rise that uses AI 0:18:06.160 --> 0:18:09.639 to reduce the cost of reskilling for workers, And so 0:18:09.680 --> 0:18:11.399 I think there are a lot of benefits that we 0:18:11.480 --> 0:18:12.840 also want to support here. 0:18:12.880 --> 0:18:15.960 Yeah, where do you fall on that general optimism pessimism 0:18:16.080 --> 0:18:19.600 viewpoint on whether this can ultimately be beneficial to society 0:18:19.640 --> 0:18:21.880 from a we will get more time to do more 0:18:21.920 --> 0:18:25.960 impactful work or is there a worry that jobs will 0:18:26.000 --> 0:18:29.160 be reduced and people won't be reskilled at the rate 0:18:29.200 --> 0:18:29.840 that they need to be. 0:18:30.880 --> 0:18:34.280 Yeah, I think it would be intellectually dishonest for a 0:18:34.320 --> 0:18:37.920 technologist working in this field to not have that worry, right, 0:18:38.240 --> 0:18:41.600 And so you know, I founded the firm because I 0:18:41.600 --> 0:18:44.040 believe it AI is a technology of abundance, but that 0:18:44.080 --> 0:18:49.159 won't happen the distribution of that abundance will not happen automatically, right, 0:18:49.200 --> 0:18:50.680 And so this is why I think there's a real 0:18:50.760 --> 0:18:55.960 room for you know, nuanced policy making here. And so 0:18:56.119 --> 0:18:58.960 the technology is only good as good as the guardrails 0:18:59.000 --> 0:19:02.760 we give it. But I think like the magic of 0:19:02.800 --> 0:19:07.520 the American innovation system is like technology drives wealth creation 0:19:07.800 --> 0:19:11.640 every There are so many things that are much cheaper 0:19:12.280 --> 0:19:16.159 for everyday Americans than they were ten years ago. Because 0:19:16.200 --> 0:19:20.240 of advancements in productivity and technology, and like one of 0:19:20.320 --> 0:19:24.600 my greatest hopes for the AI revolution is that a 0:19:24.640 --> 0:19:27.399 few of the fields that have been quite resistant to 0:19:28.040 --> 0:19:31.000 decreasing in class, like health and education, we can make 0:19:31.040 --> 0:19:32.160 some inpotes. 0:19:31.720 --> 0:19:34.840 On Sarah, I wish I could speak too much longer. 0:19:34.920 --> 0:19:36.399 And of course you've got a great podcast we can 0:19:36.520 --> 0:19:38.480 listen to you, founder of Conviction. We thank you for 0:19:38.520 --> 0:19:42.240 your time today. Meanwhile, coming up, the UK's biggest telecom 0:19:42.240 --> 0:19:44.720 operator is planning to cut tens of thousands of jobs 0:19:44.720 --> 0:19:47.879 by twenty thirty. Well digain. Meanwhile, let's just check in 0:19:47.920 --> 0:19:50.560 on Micron. You might have seen the story scoop here 0:19:50.640 --> 0:19:52.960 every body, but we're receiving about one and a half 0:19:53.000 --> 0:19:56.320 billion dollars in financial incentives from the Japanese government because 0:19:56.359 --> 0:19:58.840 all about helping to make the next generation of memory 0:19:58.920 --> 0:20:02.120 hips in that country. This is about global supply chain 0:20:02.520 --> 0:20:04.479 and ensuring that it's closer to home. For many from 0:20:04.520 --> 0:20:16.000 New York, there is a Bloomberg Welcome back to Blueberg Technology. 0:20:16.000 --> 0:20:17.800 I'm Caroline Hied in New York. Now, let's get a 0:20:17.880 --> 0:20:20.200 check on these markets. Halfway through the trading day. We're 0:20:20.200 --> 0:20:22.880 currently seeing actually some more buoyant signs, particularly in big tech. 0:20:22.920 --> 0:20:24.720 Once again, we're up more than a percentage point in 0:20:24.760 --> 0:20:26.880 the moment in terms of the Nasdaq. Some big tech 0:20:26.960 --> 0:20:29.160 on top will dive into the individual moves in a moment, 0:20:29.200 --> 0:20:31.919 but maybe some anxiety draining out when it comes to 0:20:31.960 --> 0:20:34.800 the debt relief and the debt ceiling debarcle that seems 0:20:34.840 --> 0:20:37.280 to be spiraling towards us. That Lexie anxiety is dialing 0:20:37.320 --> 0:20:40.320 back a little bit, maybe closer to the end as 0:20:40.359 --> 0:20:43.040 we hope, and currently also seeing the jobless claims coming 0:20:43.080 --> 0:20:46.800 in strong. The overall resilience of this US economy means, 0:20:46.840 --> 0:20:48.920 but it also means inflatory pressure is there. It also 0:20:49.000 --> 0:20:50.840 means the US dollar is going higher as the Federal 0:20:50.880 --> 0:20:54.160 Reserve might just have to keep on thinking about tightening 0:20:54.160 --> 0:20:56.119 its grip on inflation. We're looking at Bitcoin off by 0:20:56.160 --> 0:20:58.400 more than a percentage point as the dollar rises. Turn 0:20:58.400 --> 0:21:00.399 your attention though to some individual names, because I do 0:21:00.440 --> 0:21:02.440 want to look at some of the higher siders in 0:21:02.560 --> 0:21:05.320 video up three point eight percent. Again, this company just 0:21:05.359 --> 0:21:07.640 continues to benefit from of course the ai A law, 0:21:07.760 --> 0:21:10.399 but also remember it's still bringing us new GPUs and 0:21:10.960 --> 0:21:12.480 some of its new trips are going to be serving 0:21:12.560 --> 0:21:15.240 the gaming community in particular people liking that Apple up 0:21:15.640 --> 0:21:18.040 more than nine tenser percent. I'm thinking of gaming. We 0:21:18.040 --> 0:21:20.760 think about that mixed reality headset. We're expecting that June fifth, 0:21:20.800 --> 0:21:23.200 We're going to dig into that with Mark Germ and Cisco. Though, 0:21:23.240 --> 0:21:25.399 on the downside, and one of the biggest point drags 0:21:25.400 --> 0:21:28.000 on the overall NASDAC today. We know why they of 0:21:28.000 --> 0:21:31.680