WEBVTT - Record High Car Prices and C3 AI's New Air Force Partnership 0:00:14.880 --> 0:00:17.439 I'm Caroline Hinder Us and World headquarters in New York 0:00:17.760 --> 0:00:20.280 and the Mad Ludlow in San Francisco. This is Bloomberg 0:00:20.320 --> 0:00:24.600 technology coming up. Evis help fuel inflation. We break down 0:00:24.640 --> 0:00:28.680 today's CPI report and car prices record high, and we'll 0:00:28.680 --> 0:00:30.640 bring you the latest in the world of AI. C 0:00:30.840 --> 0:00:34.240 three AI shares jump again Tuesday without an obvious driver. 0:00:34.360 --> 0:00:37.680 Chairman and CEO Tom Siebel joints to discuss what the 0:00:37.680 --> 0:00:40.600 company is doing to justify the jump in its stock. 0:00:40.880 --> 0:00:43.520 Clus will speak to the CEO of semiconductor company weather 0:00:43.600 --> 0:00:46.839 Ring the chip slump as Tom Corfield. It's some global foundries, 0:00:46.880 --> 0:00:50.000 the CEO joining us with his outlook. All that and 0:00:50.080 --> 0:00:52.680 so much more coming up, but let's dig into these markets. 0:00:52.720 --> 0:00:55.160 It was a big macro picture kind of a day. 0:00:55.320 --> 0:00:57.840 The CPI print coming in Holler than anticipate to six 0:00:57.880 --> 0:01:00.240 point four year on year in terms of inflation should 0:01:00.280 --> 0:01:02.480 be the NASTAC pushes on, throw it up six tents 0:01:02.520 --> 0:01:05.280 of a percent? Isn't the comments from certain FED members 0:01:05.280 --> 0:01:08.199 like Harkoh saying maybe we're nearer the end in terms 0:01:08.200 --> 0:01:11.800 of our inflation fighting tactics to yet yield, though it 0:01:11.840 --> 0:01:15.640 listens more to the inflation override. They're worried about inflation, 0:01:15.720 --> 0:01:18.840 still remaining hot, yields, boring costs rise almost tempera say 0:01:19.240 --> 0:01:21.480 ten basis points on the front end, looking at the 0:01:21.520 --> 0:01:24.480 vix though dialing back. Maybe that's more about the geopolitics, 0:01:24.640 --> 0:01:28.480 the fact that maybe those new UFOs or indeed items 0:01:28.560 --> 0:01:30.280 are shut out of the sky by the United States, 0:01:30.280 --> 0:01:33.280 aren't Chinese. Maybe that dial backs some anxiety flicking on. 0:01:33.560 --> 0:01:35.360 Were actually seeing a bit of a bounce back in 0:01:35.480 --> 0:01:37.640 terms of the new music around crypto. Look at that 0:01:37.680 --> 0:01:40.280 sudden push higher in terms of bitcoin, some of the 0:01:40.280 --> 0:01:43.520 regulatory risks. Maybe we're getting used to the men. Yeah, 0:01:43.560 --> 0:01:46.759 I'm also looking at inflation, but with I also on earnings, 0:01:46.800 --> 0:01:48.800 and that is a theme that continues to the technology 0:01:48.800 --> 0:01:51.400 sector AIRB and ME breaching temper st gain now and 0:01:51.440 --> 0:01:54.360 after hours a strong outlook for the fiscal first quarter 0:01:54.440 --> 0:01:57.840 that came in above expectation in terms of bookings and sales. 0:01:57.960 --> 0:02:00.240 Will continue to track that stock across the hour because 0:02:00.280 --> 0:02:02.480 the earning school, of course will happen, will bring you 0:02:02.480 --> 0:02:04.520 some of the key numbers. Earning is also a key 0:02:04.520 --> 0:02:07.080 feature of the main session during Tuesday. Palanteer was one 0:02:07.120 --> 0:02:10.560 stock that we're tracking really closely, really big jump, taking 0:02:10.560 --> 0:02:12.760 it shares to the highest level since August. You can 0:02:12.760 --> 0:02:15.359 see that the one cent game and them saying they 0:02:15.400 --> 0:02:18.000 recorded their first coarsely profit on a gap basis in 0:02:18.040 --> 0:02:20.919 the final three months of last year, but forecasting profit 0:02:21.000 --> 0:02:22.919 for four year twenty three, which was kind of the 0:02:23.000 --> 0:02:25.959 key headline global Foundaries. As you said, Carrol up eight percent, 0:02:26.040 --> 0:02:29.160 big jump, bucking the trend in the chip industry, forecasting 0:02:29.200 --> 0:02:33.960 strong sales and elevated demand in some pockets of end markets. 0:02:33.960 --> 0:02:36.920 And the video interesting seen video. It's shares at April 0:02:37.160 --> 0:02:41.440 highs right now. But this is largely about artificial intelligence, 0:02:41.520 --> 0:02:43.799 right There's a lot of momentum around it. The work 0:02:43.880 --> 0:02:46.040 that the video is doing in the field of AI, 0:02:46.160 --> 0:02:49.160 a feel good or read through, I suppose from what's 0:02:49.160 --> 0:02:51.440 happening in the rest of the sector. But otherwise a 0:02:51.440 --> 0:02:53.000 lot of the move is the individual names on the 0:02:53.040 --> 0:02:56.760 Nazak one almost conversely to what you'd expect moving higher 0:02:56.800 --> 0:02:58.679 after that inflation print. And let's get back to the 0:02:58.720 --> 0:03:02.079 inflation story because in many ways said it's your favorite thing. 0:03:02.280 --> 0:03:04.280 E v s behind some of the push high US 0:03:04.320 --> 0:03:06.840 car prices in particular have had a record high the 0:03:06.840 --> 0:03:09.200 average monthly payment for a new car here in the US, 0:03:09.520 --> 0:03:13.560 it's now what a record seven dollars, nearly doubling from 0:03:13.600 --> 0:03:18.960 the late uncles. Because electric vehicles cost about more than 0:03:19.000 --> 0:03:21.440 the average car, the shift of plugins is about to 0:03:21.440 --> 0:03:24.800 make that affordability crisis even worse. Let's get to it. 0:03:24.919 --> 0:03:28.520 Blue Meg's Keith Norton and Keith it was a fascinating piece. 0:03:28.560 --> 0:03:30.679 There's a big take on the Blueberg terminal on dot 0:03:30.680 --> 0:03:33.640 com that is so well read about this rising issue 0:03:33.680 --> 0:03:36.760 of costs of cars. But it's a global issue, isn't it. 0:03:37.640 --> 0:03:40.000 It really is Caroline and what it's doing is it's 0:03:40.040 --> 0:03:43.440 putting the dream of car ownership out of reach for 0:03:43.600 --> 0:03:47.200 middle class buyers, which was always part of the you know, 0:03:47.760 --> 0:03:50.240 the contract with the middle croup class. You would you 0:03:50.240 --> 0:03:52.120 would have a new car in the driveway and on 0:03:52.280 --> 0:03:55.560 your own home. All of these things are coming out 0:03:55.560 --> 0:03:57.880 of reach. The average price of a new car is 0:03:58.480 --> 0:04:03.920 approaching fifty thousand dollars. That's up from nineteen It was 0:04:04.000 --> 0:04:07.400 driven by the pandemic and the supply shortages. But you 0:04:07.440 --> 0:04:10.240 know what, the automakers have discovered they can make more 0:04:10.280 --> 0:04:13.920 money selling fewer cars at higher prices, so they don't 0:04:13.920 --> 0:04:16.599 want to give it up. Yeah. The mantrack, Heath is 0:04:16.760 --> 0:04:20.320 lean inventory, fat price tags on those vehicles. The tech 0:04:20.360 --> 0:04:23.320 angle here is is the electric vehicle effect, right, And 0:04:23.400 --> 0:04:25.920 some of the most interesting reporting in that piece was 0:04:25.960 --> 0:04:30.080 the price premium for e vs over combustion engine Cause 0:04:30.120 --> 0:04:33.880 what did he find. Yeah, you know, at fifty dollars 0:04:33.960 --> 0:04:36.599 is a luxury car price, right, Well, the average price 0:04:37.040 --> 0:04:40.919 of electric vehicle is sixty one dollars and then actually 0:04:40.920 --> 0:04:43.440 just came down a bit because Tesla did some across 0:04:43.480 --> 0:04:47.720 the board price cuts. Before that, it was approaching seventy dollars. Well, 0:04:47.760 --> 0:04:50.360 that's really out of the reach of most people. And 0:04:50.480 --> 0:04:53.839 so you know, the e V push and we're expected 0:04:53.880 --> 0:04:56.320 to be you know, at least half e V by 0:04:56.360 --> 0:04:59.240 the beginning of the next decade is only going to 0:04:59.360 --> 0:05:02.600 make car is less affordable. Okay, But Keith, a lot 0:05:02.640 --> 0:05:06.240 of the handwringing was about supply chain issues, chip shortages. 0:05:06.600 --> 0:05:08.720 We know that that sort of swung into reverse. Now 0:05:08.800 --> 0:05:12.240 to a certain degree, is there still a price input 0:05:12.320 --> 0:05:16.120 issue here? Yeah? You know. The interesting think Caroline is, Yes, 0:05:16.160 --> 0:05:19.040 we have the semiconductor shortage that left to dealer lots 0:05:19.080 --> 0:05:21.720 empty that drove up prices. It's the old law of 0:05:21.760 --> 0:05:25.520 supply and demand. But the automakers saw that and said, 0:05:25.720 --> 0:05:28.279 g I, I can, you know, have fewer people in 0:05:28.320 --> 0:05:31.080 the factory. I can have less inventory that I have 0:05:31.160 --> 0:05:33.760 to pay for. I can have lower marketing costs because 0:05:33.800 --> 0:05:36.119 I don't have to discount the cars to move the metal. 0:05:36.760 --> 0:05:39.760 Let's keep this inventory low and these prices high. That's 0:05:39.800 --> 0:05:42.560 what they'd like to do forever more, whether there's a 0:05:42.640 --> 0:05:47.359 supply snag or not. Blue bes Keith Nort in terrific 0:05:47.360 --> 0:05:49.760 reporting for the Bloombell Big take. Thank you so much. 0:05:49.800 --> 0:05:51.719 I want to stick with the story and bringing Cox 0:05:51.800 --> 0:05:55.440 Automotive executive analyst Michelle Crabs. Michelle, you just take such 0:05:55.480 --> 0:05:57.919 a deep view of the auto industry. But I go 0:05:57.960 --> 0:06:00.359 back to that question. I asked Keith, what is the 0:06:00.400 --> 0:06:03.760 impact of electrification here in sort of boosting up the 0:06:03.800 --> 0:06:07.600 average price of a new car across this nation and beyond. Well, 0:06:07.800 --> 0:06:13.160 Keith had it right. The the price of electric vehicles 0:06:13.200 --> 0:06:15.839 at one point it was the average price in our 0:06:16.000 --> 0:06:20.440 calculations was about sixty six thousand dollars um. That's more 0:06:20.480 --> 0:06:24.680 than the household income for most Americans. So um, we 0:06:24.760 --> 0:06:26.479 are seeing that come down a bit, some of that 0:06:26.600 --> 0:06:29.960 because of Tesla's moves, but also because we are seeing 0:06:30.000 --> 0:06:34.000 automakers start to introduce less expensive ones, and we should 0:06:34.080 --> 0:06:39.000 see more of that. What is the permanency of this phenomenon? 0:06:39.040 --> 0:06:42.240 If we're moving towards electric vehicles and it's a slow transition, 0:06:42.680 --> 0:06:48.360 how long do prices stay elevated? I think for a while. 0:06:48.440 --> 0:06:50.599 I mean, we don't see them coming back down. And 0:06:50.640 --> 0:06:54.240 I would quiverle with Keith a little bit. Uh. We 0:06:54.320 --> 0:06:57.960 started seeing this trend long before the chip shortage. We 0:06:58.040 --> 0:07:02.239 saw the domestic automakers get out of the car business, 0:07:02.320 --> 0:07:06.560 the traditional cars and those lower price cars, leaving that 0:07:06.680 --> 0:07:09.600 to the Asian automakers. And the Asian automakers have not 0:07:09.680 --> 0:07:12.840 been able to produce them best enough to to appeal to, 0:07:13.040 --> 0:07:16.400 you know, people who are on budgets. So that's not 0:07:16.480 --> 0:07:20.120 going to change, and we are moving more towards electric vehicles. 0:07:20.400 --> 0:07:22.640 I don't know when the price parody gets there with 0:07:22.840 --> 0:07:25.880 ice vehicles, but I think we're in for some high 0:07:25.920 --> 0:07:29.200 prices for a while. I just want to bring up 0:07:29.240 --> 0:07:32.120 what we've been asking our own audience about, Michelle, because 0:07:32.400 --> 0:07:34.239 I like the fact that you put it into context 0:07:34.320 --> 0:07:36.520 that six six thousand, like it's more than most Americans 0:07:36.520 --> 0:07:39.520 bring in terms of their annual income. We asked, you 0:07:39.520 --> 0:07:41.320 know what is more worrying for you at the moment 0:07:41.360 --> 0:07:43.920 in terms of the inflationary pressures? Is it the price 0:07:43.960 --> 0:07:47.120 of evs? Well, actually, generally it is only thinking that 0:07:47.400 --> 0:07:49.480 it's more about the groceries. It's more about the price 0:07:49.480 --> 0:07:51.200 of eggs. And I'm afraid we asked the cheeky one, 0:07:51.200 --> 0:07:54.120 it's the price of love of course today being Valentine's say, 0:07:53.800 --> 0:07:56.000 forty six, and worried about that. And I'm sure they're 0:07:56.000 --> 0:07:58.840 meaning the services, the idea of going out getting restaurant 0:07:58.840 --> 0:08:01.440 bookings and drinks. But to that end, is there a 0:08:01.480 --> 0:08:04.920 clever way that we can finance altos going forward that 0:08:05.000 --> 0:08:08.800 it isn't quite so expensive on a monthly basis. Well, 0:08:08.840 --> 0:08:11.760 I think we are going to see some experimentation because 0:08:11.840 --> 0:08:16.120 this business model just doesn't work for many Americans. I 0:08:16.160 --> 0:08:20.000 think last week it was Hyundai announced a subscription service 0:08:20.040 --> 0:08:22.600 where you pay for your EV They're doing it on 0:08:22.680 --> 0:08:26.440 two models on a monthly basis. We may see that 0:08:26.720 --> 0:08:29.720 kind of thing. Uh, something has to give if we're 0:08:29.720 --> 0:08:32.600 going to go towards more e V s. I would 0:08:32.720 --> 0:08:34.600 I would say that in your survey if you'd ask, 0:08:35.520 --> 0:08:39.240 are you more worried about the general price of vehicles? 0:08:39.280 --> 0:08:41.720 And that is what I hear from consumers in the 0:08:41.720 --> 0:08:44.640 e V part just layers onto that I see. So 0:08:44.679 --> 0:08:46.960 it's sort of about the moment evs have deemed by 0:08:46.960 --> 0:08:50.760 many a sort of luxury item. Oh, absolutely, well, competition 0:08:50.880 --> 0:08:55.720 change that. Oh, it already has. You know, Tesla has 0:08:56.040 --> 0:08:58.240 done some discounting. They did some discounting at the end 0:08:58.280 --> 0:09:01.280 of this year. They cut prices. We are seeing lower 0:09:01.320 --> 0:09:05.880 priced models come under the market. So competition um will 0:09:05.920 --> 0:09:10.439 certainly impact pricing, But will it really bring it back 0:09:10.440 --> 0:09:14.880 down to the level that we're used to. Doubtful, Michelle. 0:09:14.880 --> 0:09:17.800 We've focused really on the consumer in this conversation. I 0:09:17.800 --> 0:09:20.959 want to focus on the automakers themselves, pure play like Tesla, 0:09:21.440 --> 0:09:24.120 or the transition names like GM and Ford. How do 0:09:24.160 --> 0:09:28.160 you summarize three when it comes to this transition to 0:09:28.640 --> 0:09:31.240 electric vehicles. What is it that you hope to see 0:09:31.280 --> 0:09:34.720 happen in the next twelve months. Well, I don't know 0:09:34.720 --> 0:09:36.240 if i'd hope to see have it, but I think 0:09:36.280 --> 0:09:38.319 what we are going to see is a much more 0:09:38.360 --> 0:09:42.800 competitive environment. UM Tesla has dominated the EV market. It 0:09:42.920 --> 0:09:46.360 still does, it still will, but we are starting to 0:09:46.440 --> 0:09:51.760 see some automakers make some inroads making their Tesla's market 0:09:51.800 --> 0:09:54.679 share go down. So I think what we're watching for 0:09:54.800 --> 0:09:58.640 is how much in roads do other automakers make with 0:09:58.760 --> 0:10:01.640 ev s. Always great to catch up with you, Thank 0:10:01.720 --> 0:10:05.280 you so much, great expertise from Michelle crabs Cock's automotive 0:10:05.360 --> 0:10:08.760 executive analyst. Meanwhile, sticking with autos and in fact just 0:10:08.880 --> 0:10:11.640 name checked them forward, they're actually gonna be cutting three thousand, 0:10:11.679 --> 0:10:14.440 eight hundred jobs in Europe as the EV shift takes 0:10:14.440 --> 0:10:16.480 hold of Ford is shifting its modern line up in 0:10:16.520 --> 0:10:20.600 Europe to battery only by and has previously said that 0:10:20.640 --> 0:10:23.480 the reduced time and effort to develop and make electric 0:10:23.520 --> 0:10:27.320 cars was going to lead to smaller product development teams sufficiency. 0:10:27.400 --> 0:10:30.920 There are yeah, a common story, and sticking with evis 0:10:31.040 --> 0:10:34.920 Tesla It's workers in New York Carrow are launching a 0:10:35.040 --> 0:10:39.360 unionization campaign. The employees who labeled data for Tessa's also 0:10:39.400 --> 0:10:42.480 pilot technology at the plant in Buffalo, New York, send 0:10:42.520 --> 0:10:47.160 an email to Musque today outlining their intents. Unionized employees 0:10:47.160 --> 0:10:50.800 say they're seeking better pay and job security, alongside a 0:10:50.880 --> 0:10:53.680 reduction in production pressures that they say has been harmful 0:10:54.040 --> 0:11:04.800 to their health. Welcome back to Bloomberg Technology. I'm Karen 0:11:04.840 --> 0:11:07.280 Hide in New York, and we cannot let this day 0:11:07.320 --> 0:11:10.040 go by without digging into artificial intelligence in some way, 0:11:10.040 --> 0:11:12.600 shape or form. Yeah, and it's a familiar name that 0:11:12.640 --> 0:11:15.360 I'm tracking right C three AI. Another jump of ten 0:11:15.400 --> 0:11:18.440 percent on the shares this Tuesday, no obvious reason, no 0:11:18.600 --> 0:11:20.800 headlines on the Bloomberg terminal. And then you go to 0:11:20.840 --> 0:11:22.880 the year to date performance, we're up more than a 0:11:22.960 --> 0:11:27.120 hundred percent and under an eight percent including Tuesday session. 0:11:27.400 --> 0:11:29.960 But let's let's sort of zoom out for a moment 0:11:30.280 --> 0:11:33.240 and give some context of what's going on here. This 0:11:33.320 --> 0:11:35.720 is a company that I poded around forty two dollars 0:11:35.720 --> 0:11:39.800 a share in December, all the way on the far 0:11:40.200 --> 0:11:42.880 right hand side of that screen. We're at twenty three 0:11:42.920 --> 0:11:46.680 dollars a share right now ish nowhere near its peak 0:11:47.000 --> 0:11:49.720 immediately following the I p O. So what's driving this 0:11:49.760 --> 0:11:52.360 company and its valuation? There's all well and good saying 0:11:52.400 --> 0:11:54.079 we're up a hundred percent year to date, but we're 0:11:54.120 --> 0:11:57.280 nowhere near that historic high. We're luckily carry as you know, 0:11:57.640 --> 0:12:00.000 we've got a conversation coming with exactly the right person 0:12:00.040 --> 0:12:03.560 and C three AI Chaman and CEO Tom cbol. So, Tom, 0:12:03.559 --> 0:12:05.880 you've had the preamble. You know, of course of your 0:12:05.880 --> 0:12:09.800 stocks performance, does what C three AI actually does as 0:12:09.840 --> 0:12:12.959 a business justify the trading we've seen so far in 0:12:13.720 --> 0:12:17.959 three Well, we are C three AI. I think it's 0:12:18.000 --> 0:12:24.079 the world's leading provider of enterprise m AI enterprise applications software. 0:12:24.559 --> 0:12:28.040 Any of you think that that artificial intelligence is going 0:12:28.080 --> 0:12:30.679 to interprise is going to influence the enterprise in a 0:12:30.760 --> 0:12:36.280 big way, then I think this represents a just a staggering, 0:12:36.600 --> 0:12:40.480 large addressible market opportunity. Tom. It's interesting to bring that 0:12:40.559 --> 0:12:43.040 up because we've been speaking to some vcs who will say, actually, 0:12:43.280 --> 0:12:46.160 enterprise search is where they see real business model fit. 0:12:46.240 --> 0:12:48.200 At the moment for the likes to chat GBT, just 0:12:48.240 --> 0:12:52.319 talk us through C three's generative AI for enterprise search. 0:12:52.400 --> 0:12:55.080 You're going to unveil it in March. I believe what 0:12:55.200 --> 0:12:59.320 will it disrupt? Well, what the C three I have 0:12:59.360 --> 0:13:01.560 planned for our represents about a billion and a half 0:13:01.600 --> 0:13:07.280 dollars of software engineering that we apply to manufacturing aerospace utilities, 0:13:07.480 --> 0:13:11.359 oil and gas. What have you? Now, with the combination 0:13:11.520 --> 0:13:19.400 of enterprise search, natural anguage processing, generative AI, reinforcement learning okay, 0:13:19.440 --> 0:13:24.320 and the C three AI platform allows us to fundamentally 0:13:24.559 --> 0:13:28.240 change the nature of the human computer interaction model for 0:13:28.360 --> 0:13:31.560 these important enterprise applications. So this is a this is 0:13:31.600 --> 0:13:35.440 a huge development, and it's brought you a lot of 0:13:35.440 --> 0:13:38.040 attention to AI Okay in the last couple of months, 0:13:38.040 --> 0:13:40.439 as we've seen a boy, hasn't it just and a 0:13:40.520 --> 0:13:43.280 lot of that attention has fallen upon initially Open AI. 0:13:43.400 --> 0:13:45.440 Then it moved to Microsoft that did the deal with them, 0:13:45.440 --> 0:13:47.480 and then it was of course it's what Google or 0:13:47.520 --> 0:13:49.640 a parent alphabet has us a bit up at sleeve. 0:13:49.720 --> 0:13:52.360 But also interesting with C three AI is you're kind 0:13:52.360 --> 0:13:55.440 of integrating all of those AI capabilities you're using. If 0:13:55.480 --> 0:13:59.080 I'm right, Open AI, Google Academia, what are those sorts 0:13:59.120 --> 0:14:01.880 of deals look like? How do you combine all of 0:14:01.920 --> 0:14:06.480 the best learnings. We have close technology and market partnerships 0:14:06.559 --> 0:14:10.560 with Google, with Microsoft, and with AWS, so as they 0:14:11.120 --> 0:14:15.040 advanced these technologies as they will Okay in the coming years, 0:14:15.360 --> 0:14:18.600 we're going to be immediately take advantage of all the 0:14:18.679 --> 0:14:23.520 innovations that they provide in our underlying core architecture and 0:14:23.560 --> 0:14:27.160 make those innovations available to our customers in our applications, 0:14:27.600 --> 0:14:31.200 make our applications much more efficacious, much easier to use. 0:14:31.720 --> 0:14:34.320 And so this is this is a is a big 0:14:34.360 --> 0:14:37.040 development and this could fundamentally change the nature of the 0:14:37.120 --> 0:14:40.840 human computer interaction model for enterprise applications. This is a 0:14:41.120 --> 0:14:44.640 this is genuinely a big deal. Toll my author audience 0:14:44.680 --> 0:14:47.000 on Twitter, on LinkedIn before we came on the show, 0:14:47.320 --> 0:14:49.120 what they would ask you, And actually, to be fair, 0:14:49.160 --> 0:14:52.840 they just wanted to know what artificial intelligence competence to 0:14:52.920 --> 0:14:55.200 see three have And to be fair, I think you've 0:14:55.240 --> 0:14:57.520 answered that. But it raises a good question right when 0:14:57.520 --> 0:15:01.600 you think about you today performance your thoughts is AI, 0:15:01.640 --> 0:15:03.560 and I just wonder what your take is on how 0:15:03.640 --> 0:15:06.600 much of the trading is just retail investors trying to 0:15:06.640 --> 0:15:09.720 buy in to find the next big thing in AI 0:15:09.960 --> 0:15:13.880 without missing the opportunity. Well, honestly, and I don't really 0:15:14.040 --> 0:15:17.600 track the market that closely. UM I think that you know, 0:15:17.600 --> 0:15:22.120 we've seen a market correction since that this huge technology 0:15:22.160 --> 0:15:24.440 bubble we had that that peaked. I think about the 0:15:24.440 --> 0:15:28.480 first quarter of UM. I think with C three A. 0:15:28.640 --> 0:15:33.520 I've had a dramatically undervalued security. I think when this 0:15:33.600 --> 0:15:37.880 whole thing recovers C three A, I will be, if 0:15:37.960 --> 0:15:40.680 not the one of the world's leaving providers of enterprise 0:15:40.720 --> 0:15:44.640 AI applications. And UM, you know, I think that presents 0:15:44.800 --> 0:15:47.320 a I think we still have an undervalued security and 0:15:47.360 --> 0:15:50.920 this is going to be a very promising opportunity. Tom. 0:15:50.960 --> 0:15:53.240 Noting that you've got more than eight hundred million dollars 0:15:53.280 --> 0:15:56.240 on your balance sheet in terms of cash, will you 0:15:56.280 --> 0:15:58.200 take advantage in the run up of the share of 0:15:58.240 --> 0:16:03.880 the share price and so anymore shows um, I think 0:16:03.920 --> 0:16:09.280 we're you know, we're so. Our focus is on growing 0:16:09.280 --> 0:16:12.640 the top line rapidly. Our focus is on uh and 0:16:12.840 --> 0:16:16.240 running a cash positive, profitable business, which we expect to 0:16:16.280 --> 0:16:19.920 be doing next year. I don't expect our cash balances 0:16:19.960 --> 0:16:23.240 at this time to go below seven million dollars in cash. 0:16:23.520 --> 0:16:26.240 So we're very well capitalized. We're in a position to 0:16:26.280 --> 0:16:31.520 grow the business, advanced the technology okay okay, and deliver 0:16:31.640 --> 0:16:35.320 a cash positive, profitable business growing at a at a 0:16:35.440 --> 0:16:38.160 very rapid rate. So I think about the time the 0:16:38.160 --> 0:16:40.640 FED takes its foot off the brake, I think this 0:16:40.720 --> 0:16:44.000 company is going to be blowing and going and we're 0:16:46.560 --> 0:16:48.360 wait now and then we're just gonna run the business. 0:16:49.160 --> 0:16:52.760 Will you look to inorganic, quoth Tom, because you're a 0:16:52.800 --> 0:16:54.920 man who knows M and A. In fact, your last business, 0:16:55.120 --> 0:16:58.760 which you've found a Chiman CEO, was bolted by Oracle 0:16:58.800 --> 0:17:01.280 back in the day. You understand, I'm name more than 0:17:01.320 --> 0:17:04.040 most when you buy all this and it's see and 0:17:04.080 --> 0:17:06.080 when we were in our CEO of CBOL Systems, I 0:17:06.119 --> 0:17:09.840 think we bought twenty or twenty three companies. I think it. 0:17:10.680 --> 0:17:13.880 We're focused. So Caroline, it's a great question. We're focused 0:17:13.880 --> 0:17:17.040 on growing the business organically. And I think you know, 0:17:17.119 --> 0:17:19.359 we invested over a billion and a half dollars in 0:17:19.400 --> 0:17:23.959 the technology foundation over a decade. Okay, We've done a 0:17:24.119 --> 0:17:27.720 lot of hard work here, and I think this is 0:17:27.760 --> 0:17:30.120 not going to be you know, one of these sales 0:17:30.200 --> 0:17:33.240 Force type stories or Oracle type stories. We're going to 0:17:33.280 --> 0:17:36.600 try to grow through acquisition were we we believe we 0:17:36.640 --> 0:17:39.360 have the technology foundation in place, We're going to grow 0:17:39.440 --> 0:17:42.720 the or the applicate of the technology of footprint organically. 0:17:43.040 --> 0:17:48.439 We have forty two turnkey enterprise applications today for utilities, 0:17:48.480 --> 0:17:52.359 oil and cast, defense, airspace, manufacturing. You're gonna expect that 0:17:52.400 --> 0:17:56.119 to grow to hundreds of enterprise applications in the years 0:17:56.160 --> 0:17:59.119 to come. But you know, I'm not saying, you know, 0:17:59.240 --> 0:18:02.640 never saying ever to an acquisition, but that that that's 0:18:02.680 --> 0:18:06.719 not that's just not in the in the in you know, 0:18:06.880 --> 0:18:09.520 that's not a focus right now. So in terms of 0:18:09.560 --> 0:18:12.360 how you make money from artificial intelligence, you've kind of 0:18:12.400 --> 0:18:16.760 shifted right from subscription to consumption and I'm curious about 0:18:16.800 --> 0:18:19.359 how that's worked out, the timing of it amid a 0:18:19.359 --> 0:18:23.160 boom of interest in artificial intelligence. I think the timing 0:18:23.280 --> 0:18:26.919 was perfect. Okay, And uh, you know, we've seen a 0:18:26.960 --> 0:18:32.520 transition from first perpetual licensing to subscription licensing. Now it's 0:18:32.560 --> 0:18:35.480 clear that the licensing standard for the cloud of a 0:18:35.600 --> 0:18:38.320 cloud computing is consumption based pricing. This is the way 0:18:38.320 --> 0:18:40.800 that Google does it, Microsoft does it, Amazon does it, 0:18:40.880 --> 0:18:43.840 Snowflake does it. Pretty much, this is the standard. This 0:18:43.920 --> 0:18:46.240 is the way the companies want to buy. They don't 0:18:46.280 --> 0:18:49.040 need to make big up brunch investments. They can pay 0:18:49.040 --> 0:18:52.520 as they go. And so it's, uh, we're finding it's 0:18:52.560 --> 0:18:56.800 being very very very well received by the marketplace, by 0:18:56.800 --> 0:19:00.960 our partners at Google and Microsoft, at Amazon bio customers 0:19:01.000 --> 0:19:04.159 and bio prospects. Come back, keep telling us about the 0:19:04.200 --> 0:19:07.080 deals and about what you're doing to grow the business. 0:19:07.119 --> 0:19:09.879 C three AI Chairman CEO Tom c Bull. Then we 0:19:09.920 --> 0:19:12.240 thank him now before we had to break C three AI. 0:19:12.560 --> 0:19:15.480 It's actually we understanding binning for a contract to revamp 0:19:15.520 --> 0:19:17.840 the I T systems of the UK's at National Health Service, 0:19:18.080 --> 0:19:21.679 challenging and offer from Peter Teal's Palenteer, according to reporting 0:19:21.680 --> 0:19:23.720 from The Telegraph. Now Palenteer shares we've got to get 0:19:23.720 --> 0:19:26.840 to it because they're jumping today after projecting its first 0:19:26.880 --> 0:19:31.720 annual profit. So quite the move that we've seen. We 0:19:31.760 --> 0:19:34.000 saw them after hours of course yesterday, Ed and you 0:19:34.080 --> 0:19:36.760 recently spoke to the CEO of that business too. Yeah, 0:19:36.800 --> 0:19:39.280 they've really shifted from this kind of reliance and governments 0:19:39.320 --> 0:19:43.440 to commercial customers and clearly the market over a basis 0:19:43.480 --> 0:19:46.600 believing in that story. So will continue to track that one. 0:19:46.640 --> 0:19:48.680 Now coming up, we're going to bring you the latest 0:19:48.720 --> 0:19:51.960 news in the world a VC back startups, with some 0:19:52.080 --> 0:19:54.840 still managing to raise new funds in spite of this 0:19:55.080 --> 0:20:23.680 global downturn. That's all next. This is Bloomberg time now 0:20:23.800 --> 0:20:27.720 for the VC roundup, starting with Indian fintech startup Insurance Deco, 0:20:27.760 --> 0:20:30.159 which is just raised a hundred and fifty million dollars 0:20:30.160 --> 0:20:33.720 from a group of investors led by Goldman Sachs Asset Management. 0:20:33.760 --> 0:20:36.800 It's the largest ever Series A for an Indian insurance 0:20:36.800 --> 0:20:39.440 tech company. Will use the new capital to scale up, 0:20:39.480 --> 0:20:42.399 expand to new markets, and grow the company's business with 0:20:42.520 --> 0:20:46.560 small and medium enterprises. Here's another fintech startup that's defying 0:20:46.600 --> 0:20:50.000 the market downturn, Singapore's Aspire, which has just raised a 0:20:50.080 --> 0:20:52.720 hundred million in a round that more than doubled its 0:20:52.760 --> 0:20:55.640 valuation in a deal led by light Speed and Sequoia 0:20:55.720 --> 0:20:59.080 Capital Southeast Asia. Inspires used by businesses for a range 0:20:59.240 --> 0:21:04.520 of financial services, including making international payments and automating invoices. 0:21:04.560 --> 0:21:08.360 And finally, Capsule, the online prescription delivery service backed by 0:21:08.400 --> 0:21:11.280 five Capital, is in talks to raise one hundred million 0:21:11.320 --> 0:21:14.320 dollars in a new funding round led by Cox Enterprises. 0:21:14.359 --> 0:21:17.600 That's according to the Information, citing sources who say the 0:21:17.640 --> 0:21:21.880 firm's looking to raise five million dollar valuation, down from 0:21:21.920 --> 0:21:25.840 its previous valuation of one point to billion dollars. Carrot, Yeah, 0:21:25.920 --> 0:21:27.960 we're going to see a few down rounds in this environment, 0:21:27.960 --> 0:21:38.280 I feel them welcome back to being big technology. I'm 0:21:38.320 --> 0:21:40.479 Caroline had in New York and I med love Low 0:21:40.560 --> 0:21:42.680 in San Francisco. Let's get to it. Let's get too 0:21:42.760 --> 0:21:45.399 chips right now, one that's actually based right here in 0:21:45.480 --> 0:21:49.640 New York, the state Global foundryes aid surging after earnings today, 0:21:49.680 --> 0:21:51.280 Now let's not at one point in fact, seeing as 0:21:51.280 --> 0:21:53.240 big as Move says all the way back to November, 0:21:53.359 --> 0:21:56.119 taking shares to their highest level, as we've seen of 0:21:56.200 --> 0:22:01.119 March two, once again earnings beating expectations. He did it 0:22:01.160 --> 0:22:03.119 in November, he delivered and actually said he's going to 0:22:03.160 --> 0:22:05.600 pose some sort of growth, looking positive for this year. 0:22:05.960 --> 0:22:07.960 And as they wrap up the year, it looks as 0:22:08.000 --> 0:22:11.000 though they're still feeling positive, still able to book in 0:22:11.000 --> 0:22:14.040 those orders. How when the rest of the industry seems 0:22:14.080 --> 0:22:17.200 to be going from boom to bust were Foundry CEO 0:22:17.320 --> 0:22:20.720 Tom cool Field is here to ask the questions. So, Tom, 0:22:20.760 --> 0:22:23.280 we ask you that question. When we're seeing a lot 0:22:23.400 --> 0:22:26.119 of the other chip makers, although with different model business 0:22:26.119 --> 0:22:29.840 models to yours, seeing the over supply, the ricochet coming 0:22:29.840 --> 0:22:32.560 back from the lack of supply, why are you able 0:22:32.600 --> 0:22:36.440 to take on these headwinds. Well, I think the first 0:22:36.440 --> 0:22:40.080