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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am.

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Speaker 1: He's done on Apple, Cocklay and Android Auto with the

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Speaker 1: Bloomberg Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: Just down the street from us in our San Francisco

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Speaker 2: bureau is Ed Lovelow.

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Speaker 3: He's our b Tech anchor.

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Speaker 2: We tried to convince them to couldn't work over it,

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Speaker 2: I know, but I think he has to get ready

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Speaker 2: for his own show coming up. So Ed is joining

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Speaker 2: us right now from our San Francisco bureau and Ed

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Speaker 2: the big story here in the Bay Area in Silicon Valleys, Anthropic,

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Speaker 2: the AI startup in talks to raise thirty billion dollars

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Speaker 2: that would give it a nine hundred billion dollar valuation.

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Speaker 2: I mean, this company just gets bigger and bigger, more

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Speaker 2: and more valuable every time we talk about it.

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Speaker 4: It's it's been a bit of a rollercoaster in the

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Speaker 4: sense that the story started with basically rebuffing its investors.

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Speaker 4: It's investors were like kicking down the door saying, let

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Speaker 4: us give you some money, and here's how we think

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Speaker 4: you should be valued, and they just weren't interested for

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Speaker 4: quite a number of weeks until this week, where this

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Speaker 4: is like a real live situation. They kind of accept

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Speaker 4: that the idea of raising thirty to thirty five billion

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Speaker 4: dollars makes sense right now through the private markets. And

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Speaker 4: you know, the discussions are around a nine hundred billion

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Speaker 4: dollar valuation, but probably if they're a bit higher than that,

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Speaker 4: which if it happens, you know, we're reporting it could

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Speaker 4: close even by the end of May. It would be

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Speaker 4: the world's most valuable AI startup. But if you're keeping track,

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Speaker 4: it would mean it would be more valuable than Open AI,

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Speaker 4: which is a good bit of rivalry to be covering.

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Speaker 3: And after the shows are w I'm going to cruise

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Speaker 3: on over to Sandhill Road see some of my buddies there.

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Speaker 3: Nice I want to talk to them about IPOs, I mean,

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Speaker 3: talk to us about the Anfield pipeline. For all you

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Speaker 3: guys out here, this is going to be a big,

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Speaker 3: big year potentially. Yeah.

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Speaker 4: Yeah, so much time spent down Sandhill Roads. Not just

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Speaker 4: like the vcs and the like mutual funds, late stage

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Speaker 4: private growth equity, but like if you are a cruising

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Speaker 4: and you're using a Tesla for self driving or you

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Speaker 4: can almost go that far in a way mo. Actually,

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Speaker 4: then the people you meet, they're really interesting and they

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Speaker 4: all have skin in the game. Around the IPO this week,

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Speaker 4: which is Cerebras, right, and you know, evaluation around thirty

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Speaker 4: five billion dollars. It's been a real hot ticket. It

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Speaker 4: will be the biggest IPO of the year so far

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Speaker 4: in terms of dollars raised. But you know the problem

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Speaker 4: that Cerebris will have is that we're all waiting on

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Speaker 4: SpaceX and it's very difficult for the market to look

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Speaker 4: past that one that's likely to be late June or July.

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Speaker 2: To what extent are these AI companies looking at market

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Speaker 2: conditions when they consider listing, Because for every other company

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Speaker 2: that's would be paramount, But I mean it feels like

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Speaker 2: we're talking about a different economy entirely for these AI companies.

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Speaker 4: Yeah, sometimes it's really important to say like we just

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Speaker 4: don't know, it's not in the reporting. But if you

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Speaker 4: take Anthropic as an example, we had reported that they

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Speaker 4: would go public in October of this year. Now they're

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Speaker 4: raising a big chunk of change in the private markets.

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Speaker 3: And the sort of broader story was.

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Speaker 4: Like why bother going public, right, if the private markets

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Speaker 4: can supply you the liquidity that you need to fund

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Speaker 4: your operations and invest in the compute that you need.

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Speaker 4: No point. There's also the kind of idea that we're

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Speaker 4: in a three line race between SpaceX, Open AI and

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Speaker 4: Anthropics all go public in a single calendar year. And

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Speaker 4: like Paul, you'll know, it is not infinite liquidity for

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Speaker 4: people that matter to participate in three IPOs at that scale.

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Speaker 3: Probably, So the reason I.

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Speaker 4: Say we don't know is, you know, maybe Anthropic is

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Speaker 4: not going to go in October now, maybe it's next year.

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Speaker 4: Maybe everyone's waiting on SpaceX to see if at that

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Speaker 4: scale Andthropic or open AI could pull off an IPO

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Speaker 4: at evaluation that's north of a trillion dollars or whatever

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Speaker 4: it ends up being. And with those two in particular,

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Speaker 4: scarlet like really interesting point. There's the public benefit corporation

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Speaker 4: or the charitable arm of each, which complicates the structure

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Speaker 4: of an IPO, which hasn't really been worked out yet

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Speaker 4: as far as I know.

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Speaker 3: And for better or worse, you are the Elon Musk

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Speaker 3: whisperer SpaceX God talk to us about the time and

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Speaker 3: of that potential IPO.

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Speaker 4: Yeah, I mean, you know, we broke the story first

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Speaker 4: week in May. I believe that that they had filed confidentially,

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Speaker 4: and you know, if we were right about that, which

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Speaker 4: I'm sure we were, then that s one or that

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Speaker 4: that filing will be made public by the SEC very

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Speaker 4: very soon, very soon, like in a matter of days,

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Speaker 4: so they could do it in late mid to late June.

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Speaker 4: But you know, again, timing is everything, and you know,

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Speaker 4: as we speak, you know there will be ongoing conversations

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Speaker 4: with investors. But remember, like look past Elon Musk a

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Speaker 4: little bit, SpaceX has got talent beyond him, and you

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Speaker 4: know the CFO Brent Johnson handles a lot of that

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Speaker 4: when shot, while the President handles a lot of that,

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Speaker 4: as does Jared Virtual, who's like Elon's sort of private

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Speaker 4: finance guy and straddles all his companies. So you know,

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Speaker 4: it's all in the works.

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Speaker 3: Stay with us.

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Speaker 2: More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 3: We're broadcasting live from the Eisner Emperor West Coast Real

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Speaker 3: Estate Summit in San Francisco, and out here at SF

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Speaker 3: it is all about AI. Everybody is into it. It

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Speaker 3: has revitalized this city post pandemic, which is a beautiful

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Speaker 3: thing because I'm a huge fan of San Francisco. Right now,

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Speaker 3: we're going to check in with Turun Russoni, CEO at

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Speaker 3: Groove AI. My notes tell me that Groove is an

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Speaker 3: enterprise AI services platform that helps businesses move from AI experimentation,

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Speaker 3: which is where I, to full scale deployment. Taran, thanks

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Speaker 3: so much for joining us here. How do you get

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Speaker 3: your clients, the companies you deal with, from experimenting with

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Speaker 3: AI to really deploying it fully in their business? What

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Speaker 3: do you do there?

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Speaker 5: Thank you so much for having me here.

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Speaker 6: So we help companies understand how AI adoption can be

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Speaker 6: improved in their environment, thinking about security, data and the

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Speaker 6: underlying governance and infrastructure that they need to securely adopt

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Speaker 6: AI in their environment and to adopt EI within the enterprise.

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Speaker 5: Security, privacy, trust.

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Speaker 6: And governments are very important parameters before you get into

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Speaker 6: AI adoption.

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Speaker 2: So at this conference, the iSER Amper's West Coast real

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Speaker 2: Estate Summit where there's a lot of folks in commercial

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Speaker 2: real estate, their investors or their principles.

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Speaker 3: What is your message?

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Speaker 2: What is the message of an AI company to these

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Speaker 2: folks in the real estate industry.

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Speaker 6: Yeah, as you know, AI requires a lot of infrastructure.

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Speaker 6: The underlying infrastructure is energy, data centers, a lot of compute,

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Speaker 6: and the compute requirements are ten hundred thousand x bigger.

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Speaker 6: So real estate group is a very important part of

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Speaker 6: this buildout.

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Speaker 5: And the message here is very simple.

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Speaker 6: There's going to be a lot of demand and needs

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Speaker 6: for these AI inference data centers that are going to

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Speaker 6: grow in the next three to five years, and it

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Speaker 6: is going to require us to build inference clusters at

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Speaker 6: the edge.

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Speaker 5: The last mile and the edge has always been very important.

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Speaker 6: So the real estate group plays a very big role

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Speaker 6: in that last mile and edge.

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Speaker 3: So when you talk when you work with your clients,

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Speaker 3: are you talking to like the chief technical officer, Are

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Speaker 3: you talking to the CEO? Are you talking to the board?

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Speaker 3: I mean my question is are companies just broadly defined here?

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Speaker 3: How much are they really into AI? How much? At

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Speaker 3: what level they trying to really grasp it and attack it?

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Speaker 5: Yeah? This is a this is a of great questions.

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Speaker 6: So at the board level, every board is talking about

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Speaker 6: AI right now. That's their biggest focus. And AI is compounding,

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Speaker 6: So the sooner you start, the more compounding benefits you

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Speaker 6: derive out of AI. At the c level, every CEO's

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Speaker 6: first concern is is this something I can trust? Is

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Speaker 6: this going to help me keep my enterprise secure? Is

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Speaker 6: this going to help me take it forward? At the CEO, CIO,

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Speaker 6: CSOW level, the concerns are more around how do we

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Speaker 6: make sure like our business lines, our service groups can

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Speaker 6: adopt this very efficiently, and it's going to.

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Speaker 2: Be at varying rates of adoption for different companies depending

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Speaker 2: on how management feels about it, you know, how committed

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Speaker 2: the staff is as well. But in the physical buildout

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Speaker 2: of AI, the data centers, the infrastructure, we're in California

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Speaker 2: right now, but that's not necessarily where the data centers

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Speaker 2: are being built, right, I mean, it's being clustered across

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Speaker 2: the country.

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Speaker 6: Yeah, So all of the EI data centers that have

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Speaker 6: been built in the last three to five years were purely.

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Speaker 5: Focused on energy efficiency.

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Speaker 6: Where could they find the lowest cost of energy and

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Speaker 6: how could they build a massive training cluster.

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Speaker 2: So that's not California.

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Speaker 5: That's not definitely not California, you know.

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Speaker 6: But as we go from training to inferencing, where everybody

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Speaker 6: starts adopting and using more AI, that is going to

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Speaker 6: require us to build these clusters very close to tier

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Speaker 6: one tier to cities, because that is where the users

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Speaker 6: are and that is where the consumption of AI is

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Speaker 6: going to occur.

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Speaker 3: You've mentioned security a couple times here. I can't even

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Speaker 3: imagine the security risks of AI. I mean, it's better

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Speaker 3: enough to have somebody's account hacked, but if you're going

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Speaker 3: to have some of these AI agents taking over the

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Speaker 3: world here, I'm thinking Arnold Schwarzenegger type stuff here, they

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Speaker 3: could get bad at there. How do you think about

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Speaker 3: what are the security conversations you're having with your clients.

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Speaker 6: We This conversation I have with my clients is are

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Speaker 6: you using AI to make your security better?

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Speaker 5: And that, I think is the more important part.

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Speaker 3: Are They?

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Speaker 5: Majority of them are not?

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Speaker 6: And that's what we do first, is we use AI

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Speaker 6: to actually make your security better, and then we use

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Speaker 6: security in everything you do with AI. So when you

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Speaker 6: start doing that, you automatically improve the trust factor within

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Speaker 6: every enterprise.

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Speaker 2: If you had to give one piece of advice to

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Speaker 2: the folks attending this conference, investors, developers who are trying

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Speaker 2: to understand how AI fits into what they've built up,

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Speaker 2: what they have been working on, what would it be.

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Speaker 6: I think the first one would be AI is only

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Speaker 6: going to grow from here, and it is very real,

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Speaker 6: and every enterprise is going to adopt AI at a

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Speaker 6: much more faster pace than they did with the Internet,

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Speaker 6: than they did with the mobile, than they did.

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Speaker 5: With the cloud.

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Speaker 6: We're at a very starting stage of this, so the

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Speaker 6: infrastructure required to build.

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Speaker 5: This AI is going to be a massive investment.

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Speaker 6: Think of it like the electrical infrastructure we built in

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Speaker 6: the last hundred plus years in the world, the transport

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Speaker 6: infrastructure we've.

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Speaker 5: Built in the last hundred years in the world.

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Speaker 6: EI should be thought of the same way in terms

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Speaker 6: of the infrastructure built out.

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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 3: We're broadcasting live from the Eisner Emperor West Coast Real

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Speaker 3: Estate Summit here in San Francisco. Before we laeve, I

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Speaker 3: gotta get some credit to Sebastian or technical director, get

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Speaker 3: us all set up out here in San Francisco and

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Speaker 3: so smooth, and he makes it done. But now I

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Speaker 3: got to throw him under the bus big time. I

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Speaker 3: come in this morning, I say, hey, go make a

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Speaker 3: Starbucks run. What do you want here? We go listen

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Speaker 3: to this tall macha. I'm already done at that point.

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Speaker 3: Tall macha with banana cream, cold foam. Don't tell any

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Speaker 3: of my boys back home that I made that.

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Speaker 2: But you did?

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Speaker 3: You put anywhere and it came back. It looked actually

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Speaker 3: like okay, if you like green drinks in the morning.

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Speaker 3: I'm not sure how that works, but we're here in

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Speaker 3: San Francisco, happy to be heer. This is one of

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Speaker 3: my favorite towns, always has been. When people come from

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Speaker 3: Europe and say, hey, I got three or four weeks

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Speaker 3: with the family. Where am I going on? I say,

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Speaker 3: you do to Vegas and New York whatever? You have

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Speaker 3: to spend three or four days in the Beyer hang

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Speaker 3: out in San Francisco. That's how cool this part of

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Speaker 3: the world is ned single Joints is here, Chief of

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Speaker 3: Housing and Economic Development for the City and County of

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Speaker 3: San Francisco. Then, thanks so much for joining us here.

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Speaker 7: Good morning, Thanks for having me.

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Speaker 3: Tell us how you guys, when you came into office

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Speaker 3: and he looked at the city in the County of

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Speaker 3: San Francisco, what was your to do list to get

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Speaker 3: the city back?

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Speaker 7: Well, First of all, San Francisco is the most beautiful

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Speaker 7: city in the world, I agreed. Second, we have this

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Speaker 7: incredible mindset of innovation and anything as possible with a

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Speaker 7: culture that is so much bigger than our footprint of

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Speaker 7: eight hundred and fifty thousand people, and so we have

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Speaker 7: all of the tools available to us to realize our potential.

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Speaker 7: And the last year and a half have really been

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Speaker 7: about making it easier for people to do the things

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Speaker 7: that they're best at in San Francisco, cleaning up the streets,

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Speaker 7: making this a safe, great place to raise a family.

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Speaker 7: And so the list always starts with clean and safe

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Speaker 7: because that's foundational to so many the things that we do,

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Speaker 7: whether it's for a company or for a family.

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Speaker 5: And then we think about the.

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Speaker 7: Mental health and drug crises on our streets, and then

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Speaker 7: we think about our economy and all the things we

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Speaker 7: need to do to revitalize our economy, and we feel

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Speaker 7: like we're on a really good start.

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Speaker 2: You work very closely with the new mayor, Dan Lourie,

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Speaker 2: and he has made permitting reform a big, big issue.

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Speaker 2: And this has to do with how easy or in

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Speaker 2: San Francisco's case, how difficult it's been for a small

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Speaker 2: business to open a business, to just be able to

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Speaker 2: get stuff done.

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Speaker 3: What did it look like before?

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Speaker 2: What does it look like now?

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Speaker 7: Well, I'd say we've changed it in two ways. One

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Speaker 7: is there's clearly a mindset in city Hall from people

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Speaker 7: who've been there for decades and those of us who've

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Speaker 7: only been there for a small amount of time, that

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Speaker 7: we want to fix the small problems and make it easier.

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Speaker 7: And that message has become crystal clear to small businesses.

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Speaker 7: So they come to us with ideas they open a

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Speaker 7: business or a second store that they may not have

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Speaker 7: before because they know that we're on their side and

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Speaker 7: that we're trying to help them. That mindset has helped tremendously.

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Speaker 7: It's not enough, though we've passed twenty pieces of legislation

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Speaker 7: to make it easier to build housing and to start

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Speaker 7: or run a small business. Now get this. If you

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Speaker 7: want to paint your logo on the window of your store,

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Speaker 7: you don't need a permit anymore. I know it sounds

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Speaker 7: like something maybe you didn't need a permit for before,

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Speaker 7: but now you don't need a permit for it today.

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Speaker 7: If you want to put tables and chairs outside your

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Speaker 7: bar or restaurant, you don't need to come see us

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Speaker 7: once a year when you should be at your bar restaurant,

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Speaker 7: and you don't need to pass twenty five hundred dollars

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Speaker 7: a year for that permit. Those are two great examples,

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Speaker 7: but there's so many more of where we're just knocking

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Speaker 7: down challenges that we put in front of people. These

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Speaker 7: things were all there through good intent. There were too

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Speaker 7: many of them, and were trying to remove as many

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Speaker 7: of them as we can.

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Speaker 3: It's funny you mentioned you out there diningis my cab,

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Speaker 3: my uber coming in. I did not take the way moo.

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Speaker 5: I tried it.

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Speaker 3: Take my uber coming in. I saw people sitting outside

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Speaker 3: with the lights out, in the restaurant's habits, out there,

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Speaker 3: sitting where you used to that in the city. And yes, city, Yes,

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Speaker 3: I hadn't seen that before too often in San Francisco.

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Speaker 3: It's kind of too cold for that.

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Speaker 7: You know, you're telling me it's colder in San Francisco

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Speaker 7: than it is in New York.

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Speaker 3: Because of the month of the year. It is, no

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Speaker 3: it's you know, the coldest winter I ever spent was

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Speaker 3: the summer I spent sat That's cool. Talk to us

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Speaker 3: about just the business community here. AI has been such

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Speaker 3: a big development globally, but boy, the epicenter's right here

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Speaker 3: in San Francisco.

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Speaker 5: Isn't it.

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Speaker 7: It really is right here in San Francisco. It's incredible

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Speaker 7: that you can walk just a few blocks from where

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Speaker 7: we are today and those companies that you hear about

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Speaker 7: changing the world wherever you are in the world, uh,

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Speaker 7: they are right here, and their employees are living here,

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Speaker 7: they are going to dinner here, they are raising families here,

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Speaker 7: and the mayor, myself and others, we're also asked them

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Speaker 7: to be a part of helping San Francisco realize its

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Speaker 7: potential if that means chipping in, whether it's through volunteering

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Speaker 7: or contributing capital to some of the real opportunities that

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Speaker 7: we see for public private partnerships as well.

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Speaker 2: So it's not just office demand that gets a lot

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Speaker 2: of the headlines, but it's also conventions towardsm the visitor's economy.

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Speaker 3: Paul and I are here.

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Speaker 2: We're spending money at the Four Seasons of Marcadero.

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Speaker 3: We're spending money in the city.

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Speaker 2: Today, we're attending the eiser ampor West Coast Real Estate Summit.

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Speaker 3: What is that like to try to get.

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Speaker 2: Companies to get back in here and commit to building

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Speaker 2: up a presence again in San Francisco. How's that different

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Speaker 2: from building affordable housing and reducing the red tape for

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Speaker 2: small businesses.

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Speaker 7: Well, it's all linked. Those same things that you do

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Speaker 7: for small businesses or for families to make it use

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Speaker 7: that I have a home, those ladder up to the

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Speaker 7: work for businesses as well, because if you run a

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Speaker 7: big company and your team can't live in the city

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Speaker 7: where you operate, that's hard for them and they're going

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Speaker 7: to choose to be somewhere else. If there aren't restaurants

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Speaker 7: and small businesses to patronize, they're not going to want

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Speaker 7: to have their employees come downtown. They're not going to

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Speaker 7: ask them to come back five days a week. So,

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Speaker 7: first of all, that work is really important. But second

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Speaker 7: of all, just as we were talking about small businesses

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Speaker 7: where we need to be cheerleaders, we need the big

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Speaker 7: companies to know that we are open for business and

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Speaker 7: we're open for feedback. We're on the phone with them

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Speaker 7: all the time. We're touring them around downtown hand in hand,

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Speaker 7: showing them the progress that we've made and talking about

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Speaker 7: the work that's still in front of us. And then

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Speaker 7: we're talking about how we know we need to be principled, predictable,

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Speaker 7: and transparent, whether it's around our tax code, or our

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Speaker 7: permitting processes, or what all the things that ladder up

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Speaker 7: to them running a big, successful company here. We've always

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Speaker 7: been a place where people start start companies. Over time

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Speaker 7: we tend to export those companies. We need them to

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Speaker 7: be comfortable that this is a great place not just

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Speaker 7: to start, but to stay for a really long time.

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Speaker 3: About affordability thirty seconds left. That's a big issue talked

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Speaker 3: to about how you're approaching affordability.

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Speaker 7: Well, we pass something called the Families Zone in December.

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Speaker 7: The mayor signed it in January. This is a roadmap

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Speaker 7: to build more height on transit corridors and denser in neighborhoods.

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Speaker 7: We need a lot more people to live in San Francisco.

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Speaker 7: Dan Doctoroff, who had a job like mine in New York,

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Speaker 7: he said to me once, he said, if the city

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Speaker 7: isn't growing, it's dying. And we know that we need

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Speaker 7: a roadmap for people to build against and that will

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Speaker 7: ladder up to affordability over time.

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Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

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