Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of
Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Luvelow.
Speaker 2: Live from New York.
Speaker 3: I'm Katie Greifeld and I'm Jackie Devallis in Washington. This
Speaker 3: is Bloomberg Technology.
Speaker 2: Coming up.
Speaker 3: Big tech shares rebound as US stocks see some relief
Speaker 3: from tariff tensions that have shaken global markets and rattled consumers.
Speaker 3: Plus a conversation with the CEO of Palenteer as the
Speaker 3: company announces new partnerships to make American manufacturing more efficient
Speaker 3: and earning season is not over. We'll sit down with
Speaker 3: the CEOs of Rubric and DocuSign following their results.
Speaker 2: Take a look at what's driving today's action. You have
Speaker 2: two names that really stand out to me. I'm taking
Speaker 2: a look at Tesla and I'm taking a look at Nvidia.
Speaker 2: Tesla shares up about two percent right now. We know
Speaker 2: that Tehla really has been in the hurt locker for
Speaker 2: much of twenty twenty five, but seeing a little bit
Speaker 2: of a rebound on this Friday in Nvidia is your
Speaker 2: biggest gainer on a points basis when it comes to
Speaker 2: the S and P five hundred, also really helping out
Speaker 2: the NASAQ one hundred right now in Vidia shares hire
Speaker 2: by about four percent right.
Speaker 3: Now, Jackie, Let's get to all of this with Bloomberg's
Speaker 3: Ryan Blastelica. Ryan, help us understand this roller coaster, because
Speaker 3: some of these mag seven names were exactly what was
Speaker 3: dragging us down earlier this week.
Speaker 4: What's changed?
Speaker 5: Hey, it's been a very vulnerable week. But some people
Speaker 5: have been really wondering, are we going to see some
Speaker 5: kind of capitulation here? Are we going to see some
Speaker 5: sort of end to the selling pressure that has been
Speaker 5: going on, you know, certainly this week, but really for
Speaker 5: the past couple of weeks, And it does seem like
Speaker 5: maybe we are starting to see a little bit of
Speaker 5: dipbuying coming in here. Some of these names have gotten
Speaker 5: very oversold by some metrics. There are still some concerns
Speaker 5: about the economic outlook. Many of these names will have
Speaker 5: some slowing growth prospects, but the growth remains above the
Speaker 5: market rate. So I think people are kind of saying,
Speaker 5: you know, these are still pretty strong companies and they
Speaker 5: might be looking to take advantage of that.
Speaker 2: Today well, Ryan, I'm curious what you're seeing as the
Speaker 2: driver when you talk to analysts, when you talk to investors,
Speaker 2: because it is still earning season, as we've been reminded of,
Speaker 2: but it feels like even good news isn't necessarily helping
Speaker 2: out these stocks when it comes to fundamentals of these
Speaker 2: actual corporate names. Is it just overall sentiment, risk, appetite,
Speaker 2: is invaluations? What is actually the catalyst of the market
Speaker 2: right now?
Speaker 5: I'd say it's really all of those things. So prior
Speaker 5: to this year, all these stocks have done extremely well.
Speaker 5: Many of them are trading at multiples that were kind
Speaker 5: of stretch relative to their history. You know, when you
Speaker 5: have a two three year rally in some of these
Speaker 5: names that took some of them up, you know, more
Speaker 5: than one hundred percent, it's a natural place for people
Speaker 5: to be wanting to take profits. When you couple that
Speaker 5: with you know, tariff uncertainty, overall economic uncertainty, you have
Speaker 5: people to sort of like shooting first and asking questions later.
Speaker 5: I don't think people have really soured on the group,
Speaker 5: but there's certainly nothing that's really continuing to push them
Speaker 5: higher from already elevated levels. Already elevated multiples.
Speaker 3: Marian, I'm curious how consumer sentiment ends up affecting tech
Speaker 3: names that are sometimes a little bit more insulated, at
Speaker 3: least like in the short term some of those swings
Speaker 3: and how people are feeling about their budgets. Is that
Speaker 3: something that we're going to see later on.
Speaker 5: I would say that you might see it most particularly
Speaker 5: with something like Apple, which is a very consumer facing name.
Speaker 5: It's a little bit less potent for say, Microsoft is
Speaker 5: more focused on the enterprise, maybe a little bit less
Speaker 5: focused for Meta and Alphabet. Obviously, there is a correlation
Speaker 5: between sort of ad spin and just overall economic growth,
Speaker 5: so it's less of a consumer story. But I do
Speaker 5: feel like if there is sort of broader uncertainty, it
Speaker 5: is likely you will see media a broader pullback here.
Speaker 5: I'm not so concerned about it from a revenue perspective,
Speaker 5: outside of companies like Apple, which has already been struggling
Speaker 5: to see pretty robust demand for its latest I phone.
Speaker 3: That's Bloomberg's Ryan Weastelica. Thank you so much for joining us. Meanwhile,
Speaker 3: Representative Biden Donalds is planning to introduce legislation today to
Speaker 3: codify an executive order that President Trump signed earlier this
Speaker 3: month which established a Strategic Bitcoin Reserve and US Digital
Speaker 3: Asset Stockpile. Passing the bill would ensure that the reserve
Speaker 3: in the stockpile could not be eliminated by future executive
Speaker 3: action from another president down the line. This would protect
Speaker 3: crypto friendly policy that President Trump has embraced, Katie.
Speaker 2: And this year, traditional finance executives have also been in
Speaker 2: versing crypto and discussing business opportunities with crypto firms. That's
Speaker 2: a shift in sentiment towards digital assets, and it was
Speaker 2: really on display at the Futures Industry conference in Florida recently.
Speaker 2: Bloomberg's Bernard Goider was at the conference joining us now,
Speaker 2: so talk us through what the mood on the ground was,
Speaker 2: because I take a look at this market, the crypto market,
Speaker 2: and outside of just today, it seems like centiment has
Speaker 2: been pretty bad.
Speaker 6: Yeah, it has.
Speaker 7: I mean, the crypto market is really kind of coming back.
Speaker 7: Winter is coming, as we say in crypto land. But
Speaker 7: I think more broadly, there's some real structural shifts in
Speaker 7: this industry that bode pretty well for the long term
Speaker 7: in terms of crypto. So the main thing was that
Speaker 7: there were so many established exchanges talking about their crypto offerings.
Speaker 7: We saw last year that growth of these ecfs come
Speaker 7: on board. Doesn't feel like that it was that long
Speaker 7: ago before, you know, we didn't even have any crypto
Speaker 7: ETF and now there's cryptodervatives people can trade. So we
Speaker 7: saw one exchange, the Singapore Exchange, of very established exchange
Speaker 7: launch looking to launch. They haven't had approval from the
Speaker 7: Singapore authorities yet, but they're trying to launch some new
Speaker 7: crypto products, perpetuals that were famously traded on FTX. So
Speaker 7: it's it's a sign that maybe the party is going to.
Speaker 8: Carry on for crypto.
Speaker 3: Bernard, I want to talk about some of the other
Speaker 3: structural change is that you alluded to just now. Prediction
Speaker 3: markets are really starting to come up in this sector,
Speaker 3: and I'm curious what you see as the impact on
Speaker 3: some of these newer players that they could have on
Speaker 3: futures markets for example.
Speaker 7: Yeah, well there's you know, markets are characterized by fear
Speaker 7: and greed, and I think we saw both of that
Speaker 7: on display. So I spoke to the CEO of Ninja Trader,
Speaker 7: one of the upcoming futures trading brokers, and they were
Speaker 7: really keen on these on these prediction market players, they're
Speaker 7: kind of saying, well, you know you can you can
Speaker 7: put a bet on the Super Bowl, you can go
Speaker 7: to a casino, you can go to a sports betting plays,
Speaker 7: or you can or you can maybe do that with futures.
Speaker 7: But we see real reservations in the regulatory community about
Speaker 7: about these kind of events contracts. And what was striking
Speaker 7: is a close ally of Donald Trump, Jeff Sprecker, who
Speaker 7: is the CEO of Ice, one of the companies we
Speaker 7: were just talking about, saying, look, we really need to
Speaker 7: draw a line between what's gambling and what's what's what's trading,
Speaker 7: what's investing, what's giving people the opportunity to hedge. And
Speaker 7: one of the areas that I mean one rule that
Speaker 7: i've basically is there if there's a ball involved, then
Speaker 7: you're probably looking at the gambling side of things rather
Speaker 7: than rather than investing.
Speaker 2: Talk us through how this conversation factors into what we're
Speaker 2: seeing in the market right now. I mean Bitcoin, it's
Speaker 2: back above eighty thousand dollars a coin, but we got
Speaker 2: below it and it feels like the halcyon days above
Speaker 2: one hundred thousand dollars per coin feel pretty distant right now.
Speaker 2: So you talk about this optimism that you're feeling when
Speaker 2: you talk to these executives and you talk to these
Speaker 2: conference attendees, but what's actually going on in markets.
Speaker 7: Well, what you've got to understand about the people at
Speaker 7: this conference is these are either futures exchange executives or
Speaker 7: their executives are proprietary trading companies. These are companies like
Speaker 7: Citadel Securities that are they make market They make money
Speaker 7: whichever way markets go. So really, you know, it's hard
Speaker 7: to the main sentiment is that there's a lot of volatility,
Speaker 7: and that volatility is great news if you're running an exchange,
Speaker 7: if you're a market maker, might be less good news
Speaker 7: if you're a retail investor who's decided to buy and hold,
Speaker 7: buy and hold bitcoin or Ethereg's.
Speaker 3: Bernard Goiter, thank you so much for joining us. Coming up,
Speaker 3: shares of Rubric and DocuSign are surging today after posting
Speaker 3: an earnings beat. We'll speak with Rubric's CEO bit bull
Speaker 3: Singa and DocuSign CEO Alan Tigason.
Speaker 6: That's next.
Speaker 2: This is Bloomberg.
Speaker 9: Well.
Speaker 2: Shares of Rubric are absolutely flying today, up about twenty
Speaker 2: five percent. That's after the security software company posted a
Speaker 2: better than expected fourth quarter revenue and also you have
Speaker 2: a stronger than expected first quarter outlook for more. I'm
Speaker 2: pleased to say we're joined now by Ruberg CEO bit
Speaker 2: bul Sinha joining us. Great to have you with us.
Speaker 2: Let's just talk through the first quarter forecast. It seems
Speaker 2: like that's what a lot of the sell side is
Speaker 2: seizing onto and that's why you see the shares reacting
Speaker 2: the way that they are. So your revenue forecast is
Speaker 2: now two hundred and fifty nine million dollars to two
Speaker 2: hundred and sixty one million dollars. That is well above
Speaker 2: the estimate of just around two hundred and forty three
Speaker 2: million dollars. Where did this strength come from? What are
Speaker 2: you seeing that led you to this upgrade?
Speaker 9: First of all, thank you so much for this opportunity.
Speaker 9: We had a strong end of the last fiscal year.
Speaker 9: The Q four subscription revenue subscription arr group thirty nine
Speaker 9: percent year over year, and not only that, we generated
Speaker 9: seventy five million of free cast flow in the quarter,
Speaker 9: and then we were cash flow positive for the full year.
Speaker 9: And I love our customers. I travel around the world.
Speaker 9: I had four hundred plus meeting last year, and what
Speaker 9: we are observing is that cyber resiliency is the number one.
Speaker 10: Priority in cybersecurity.
Speaker 9: Everyone is worried about ransomware attack and cyber attack and
Speaker 9: how do they keep their businesses up and running irrespective
Speaker 9: of the attack. And that's what is driving the demand
Speaker 9: for Rubreak. That's what is reflected in our guidance. We
Speaker 9: guided thirty percent growth in the top line revenue for
Speaker 9: the next fiscal year.
Speaker 3: Piple, Let's dig a little bit deeper under the hood.
Speaker 3: On the earnings call, as night analysts were really impress it.
Speaker 3: You're basically a year ahead of where you thought you
Speaker 3: would be just even a year ago. And so when
Speaker 3: we think about the generative AI opportunity here, obviously you
Speaker 3: guys were a huge beneficiary of the cloud transition, which
Speaker 3: seems silly to say now because it's so commonplace. But
Speaker 3: what does AI do for your future growth prospects.
Speaker 11: At generative WAI gather systeam in the enterprise, businesses have
Speaker 11: to transform to be ready for gen AI, and these
Speaker 11: transformation involved transformation to cloud and also transforming the data
Speaker 11: landscape from the data integrity, data classifications, understanding of sensitive
Speaker 11: data because to deliver responsible AI, businesses.
Speaker 9: Have to ensure that the right data goes to the
Speaker 9: right user. And Rubric is a data security company and
Speaker 9: we are delivering integrity of the data, availability of the data,
Speaker 9: and ensuring that only the right data goes to the
Speaker 9: right user on the right platform, at the right time,
Speaker 9: for the right duration.
Speaker 3: When it comes to the geopolitical tensions around the world,
Speaker 3: there's a number of conflicts going on right now.
Speaker 6: Do you guys.
Speaker 3: See any kind of signal of increased cybersecurity threats that
Speaker 3: kind of correlate to what's going on in the world
Speaker 3: and is that good for your business at the end
Speaker 3: of the day.
Speaker 9: Obviously, if you look at the geopolitical landscape, you have
Speaker 9: national state actors, industrial espionage insider thread.
Speaker 10: I mean, as as we are.
Speaker 9: Digitizing and moving and adopting newer and newer technology for
Speaker 9: productivity gains, the surface area of attacks keeps increasing.
Speaker 10: So this has been a trend that has been a
Speaker 10: secular trend.
Speaker 9: What is shift is in the last three or four years,
Speaker 9: there is a realization that they folks cannot stop all
Speaker 9: the attacks. And in the last twenty five years, everyone
Speaker 9: invested in attack prevention and now the focus has moved
Speaker 9: to saying that attacks will happen, and how do we
Speaker 9: ensure that our businesses keep running.
Speaker 10: Schools are still open when the attack happens.
Speaker 9: The kids can go to school, people can go to hospital,
Speaker 9: your banks can still dole out money when you swipe
Speaker 9: your credit card or swipe your debit card, so essentially
Speaker 9: keeping the business up and running. In the geopolitical environment,
Speaker 9: cyber warfare critical infrastructure is high variety, and that's what
Speaker 9: is driving this new vision in cybersecurity around cyber resilience.
Speaker 2: Well, just in the past couple of weeks, I mean,
Speaker 2: you remember Elon Muss saying that X was being cyber attacked.
Speaker 2: X was down for a little bit. I couldn't see
Speaker 2: my fate. It was really a scary time. But I'm
Speaker 2: wondering if this is just a fact of life. I mean,
Speaker 2: you think about all the high profile cyber attacks that
Speaker 2: we've had in the past couple of years, the past
Speaker 2: couple months, even, and it seems like there has been
Speaker 2: an uptick and that's not necessarily abating.
Speaker 9: Cyber attack has fundamentally changed in the last five to
Speaker 9: seven years. It used to be a board teenager showing
Speaker 9: middle finger to large corporation by bringing down their website
Speaker 9: or doing the denial of service attacks. Now it has
Speaker 9: become a cyber crime where people are trying to monitorize,
Speaker 9: or protest or demonstrate that they can take a business down,
Speaker 9: and it is a fundamental existential threat to businesses. As
Speaker 9: elon Road that X was under attack and they were
Speaker 9: trying to bring it down.
Speaker 10: That's where the businesses are today.
Speaker 9: So if you're not ready for cyber attack, and if
Speaker 9: you're not ready to keep your services up and running
Speaker 9: in spite of cyber attack, the business may not exist.
Speaker 9: And that's the new environment that everyone is living in.
Speaker 4: Through Bricks.
Speaker 3: CEO Bill pool Sanna, thank you so much for joining us.
Speaker 3: Another stock we're watching today is DocuSign. That stock is
Speaker 3: surging after the asignature software company gave an encouraging outlook
Speaker 3: for billings. For more on this, DocuSign CEO Alan Tikison
Speaker 3: joins us. Now, Alan, you started selling an AI powered
Speaker 3: product not too long ago, and I'm curious how much
Speaker 3: of a role you've seen in that growth of that product.
Speaker 3: How much of a role is that playing in this
Speaker 3: bullish outlook we're seeing.
Speaker 8: It's very important for it. So first it was a
Speaker 8: very very strong quota for us and the culbination. I
Speaker 8: think of a transformative year for docu sign where we've
Speaker 8: continued to stabilize our core business. We got much more profitable,
Speaker 8: so we've i think taken our operating margin up by
Speaker 8: ten percentage points in the last two years. And then
Speaker 8: most importantly, as you alluded to, we've introduced this new intelligence,
Speaker 8: giving and management platform that's very much centered around AI
Speaker 8: and we saw some very nice early success and that
Speaker 8: is what allowed us to not only print some good results,
Speaker 8: but show an increase in an acceleration in billings growth
Speaker 8: for next year. And I think the investors like that.
Speaker 3: Talk to us a little bit more about what that
Speaker 3: innovation is going to look like going forward. If it
Speaker 3: is such an integral part of that growth story going forward,
Speaker 3: is it going to be what we see coming out
Speaker 3: of the language model developers? For example, there's a new
Speaker 3: feature every month that really kind of keeps us on
Speaker 3: our toes for you guys, what's kind of the next
Speaker 3: thing that's going to take it to the next level.
Speaker 8: Yeah, So, look, I feel very fortunate to be the
Speaker 8: Docsun at a time when there is such an incredible
Speaker 8: improvement and the ability of AI. We've been a user
Speaker 8: of AI for a long time, it's been integrated into
Speaker 8: our products, but obviously there's been a step change in capability,
Speaker 8: and agreements have historically been dumb, flat files inside of
Speaker 8: all companies. People could barely tell you where they were
Speaker 8: let alone it was in them, and with AI we
Speaker 8: can completely transform that. So now I can tell you
Speaker 8: where what's in all your agreements, when are they up
Speaker 8: for renewal, what are the key terms you might want
Speaker 8: to renegotiate, what are the terms where you or your
Speaker 8: vendors have not been performing. That just a total game
Speaker 8: changer that hasn't been possible before, and so we have
Speaker 8: a lot aheadroom for AI features. We're going to be
Speaker 8: previewing a lot about new capability at our Momentum event
Speaker 8: next month in New York, but already we're seeing take
Speaker 8: tremendous adoption and interest in getting more visibility into and
Speaker 8: capturing the data and using the data from your agreements.
Speaker 2: Allen, I want to talk a little bit about how
Speaker 2: this translates into the stock price, because you take a
Speaker 2: look at the five year chart, Obviously we're flying high
Speaker 2: during the pandemic that came with a lot of volatility
Speaker 2: on the back end. Then you had a fantastic twenty
Speaker 2: twenty four, up about fifty percent in your shares before yesterday.
Speaker 2: Through yesterday's closed, the shares were down about seventeen percent
Speaker 2: year to date though, and now they're up about seventeen
Speaker 2: percent today alone, So a lot of volatility. What is
Speaker 2: your message to investors about how you're sort of going
Speaker 2: to stabilize the stock from here?
Speaker 8: Yeah, I can't control the stock in the short term,
Speaker 8: but what I can tell investors is I think Docu
Speaker 8: Sime is on a transformation journey. We put down I
Speaker 8: think a very strong found for that last year. You
Speaker 8: can see our optimism about growth acceleration in our outlook,
Speaker 8: and we think we have years ahead of that and
Speaker 8: that will then flow through to revenue and ultimately into
Speaker 8: operating income. There's just so much headroom in agreements, and
Speaker 8: DocuSign is the best position as the largest vendor focused
Speaker 8: on agreements to capture that, and I think we're starting
Speaker 8: to demonstrate that we have that opportunity. So there'll be
Speaker 8: a little bit of volatility in the short run, but
Speaker 8: I think the long term trajectory is very positive.
Speaker 3: Alan here in Washington, there's been a lot of uncertainty
Speaker 3: with regards to the economy. Recession fears are starting to
Speaker 3: bubble up, policy tariffs, There's been a lot that has
Speaker 3: kind of eventually battered stocks across the board. And for
Speaker 3: you guys, how does the consumer sentiment affect your business?
Speaker 3: Are you a bit more insulated from it given your
Speaker 3: customer base?
Speaker 8: We are, so we are very diversified customer base across
Speaker 8: really all sectors of the economy, all sizes of companies,
Speaker 8: and of course also geographically, and as a result, things
Speaker 8: that affect individuals, sectors and countries tend not to show
Speaker 8: up as much for Docusine. But if we take that
Speaker 8: macro question that you asked and the bulk of the
Speaker 8: agreements that get executed with docusigine our agreements with consumers.
Speaker 8: Even through February, we've not seen a material deviation from
Speaker 8: trends so so far, it hasn't flowed through to consumer
Speaker 8: activity as we can see it. But obviously if the
Speaker 8: world economy accelerates or decelerates in a material way, that
Speaker 8: will also ultimately affect us.
Speaker 3: In about thirty seconds, I'm curious about the competition. Here
Speaker 3: we saw drop boxing. They're kind of de emphasizing their
Speaker 3: signing business. Is this an opportunity for you guys?
Speaker 8: Well, OK, there are a lot of companies who've developed
Speaker 8: basic signature solutions. Docu sign is the clear market leader.
Speaker 8: Said the pace and are usually the product of preference
Speaker 8: for small and large companies, and so I don't focus
Speaker 8: on individual competitors, but I like where we're sitting from
Speaker 8: in the core sign business. And of course with this
Speaker 8: much broader platform for intelligent agreement management, we now have
Speaker 8: a much broader value proposition to sell to our one
Speaker 8: point seven million monthly paying sign customers.
Speaker 2: Well, Alan, really appreciate your time, have a great weekend
Speaker 2: when you get there. That is Docu Signed CEO Alan Tigason.
Speaker 3: No one has benefited more than the AI boom than
Speaker 3: Nvidio and It's CEO Jensen Wong. But with troubling signs
Speaker 3: ahead from the likes of deep Seek or President Trump's tariffs,
Speaker 3: and Vidia CEO is now trying to extend the good times.
Speaker 8: Let's talk about.
Speaker 3: This with Ian King here for more on today's big take. Ian,
Speaker 3: you have been covering this company way before it became
Speaker 3: the cool kid on Wall Street and in Silicon Valley.
Speaker 3: What is next for the company now, given that we've
Speaker 3: seen it's not immune from new entrants coming into the
Speaker 3: AI space.
Speaker 12: Yeah, I mean to be honest with you, at the moment,
Speaker 12: it's pretty safe in terms of competition, but that doesn't
Speaker 12: mean that there aren't those out there that are trying
Speaker 12: really hard. But what we were trying to show in
Speaker 12: the story is that, you know, the CEO, Jensen Wang,
Speaker 12: is not getting happy, fat and lazy here with these
Speaker 12: billions of dollars. He's out there everyruarrey possibly can and
Speaker 12: his mission is to get AI out into the economy
Speaker 12: as fast as he possibly can and as make it
Speaker 12: as pervasive as he possibly can, because that's, you know,
Speaker 12: fundamental to whether this growth story has legs or not.
Speaker 2: Happy, fat and lazy. That sounds like every cat's dream.
Speaker 2: But I want to talk to you about my favorite
Speaker 2: chart in the world, at least for right now. I
Speaker 2: want to look at Intel versus Nvidia. You're to date
Speaker 2: because it's a really stunning reversal of fortunes. Intel of
Speaker 2: about nineteen percent in video, which has been the darling
Speaker 2: down actually on a total return basis nearly ten percent
Speaker 2: from the folks that you speak to. Is this sustainable?
Speaker 2: Ian in just about forty.
Speaker 12: Five seconds, Yeah, I mean this is This is just
Speaker 12: what's going on with Intel on a corporate level that's
Speaker 12: causing people to be trading in and out of it. Fundamentally,
Speaker 12: the flow of wealth is solidly in in Video's direction.
Speaker 12: Whether it's a inning's profit margin or anything.
Speaker 3: Else, it's Bloomberg's Ian King. Thank you so much for
Speaker 3: joining us.
Speaker 2: Welcome back to Bloomberg Technology. I'm Katie Greifeld in New.
Speaker 3: York and I'm Jackie Devallis in Washington. Pollunteer Technologies has
Speaker 3: announced a new partnership with healthcare software provider are One.
Speaker 3: Our very own Bloomberg Caroline Hight spoke with Palenteer CEO
Speaker 3: Alex carp and r One CEO Joe Flanagan about that
Speaker 3: deal and how cost cutting in Washington and corporate America
Speaker 3: could impact their plans.
Speaker 13: People who are basically anti reform, whether it's like anti
Speaker 13: doge people or anti tech people. In corporate life, everyone
Speaker 13: has their excuse to Many companies are just like yeah,
Speaker 13: I'd rather I mean basically have a steak dinner with
Speaker 13: some model provider and feel cool and it doesn't work.
Speaker 13: And then you have the government version, which is we
Speaker 13: can do no reform.
Speaker 6: The whole thing has to suck.
Speaker 13: At a high level what America is going through and
Speaker 13: this is going to be.
Speaker 6: An absolute.
Speaker 13: A crucial example of this is you're going to get
Speaker 13: the system to work much better at a lower cost.
Speaker 13: And this is this is a macro trend that is unstoppable,
Speaker 13: which basically means those that actually run together are going
Speaker 13: to take over the whole market.
Speaker 6: Like my version of this is.
Speaker 13: The care and the economics are going to be so
Speaker 13: much better, they're going to take over the whole market.
Speaker 14: Joe, I mean, you already have most of the market
Speaker 14: of top health systems, but how are those leaders in
Speaker 14: health wanting to work with you at the moment. There's
Speaker 14: a lot of anxiety in the market. There's a lot
Speaker 14: of worry about future economies and whether people want to
Speaker 14: be leaning into new contracts, new relationships, new partners.
Speaker 6: Yeah.
Speaker 15: Listen, we've had great receptivity from our health systems and
Speaker 15: the broader end market, and really we are one hundred
Speaker 15: percent aligned with their objectives. We want to transform the
Speaker 15: experience for the patient and the physician. Those are the
Speaker 15: two users of this process, and we want to unlock
Speaker 15: financial capacity for our customers that can be reinvested in
Speaker 15: clinical excellence supporting their communities. And the reality is the
Speaker 15: design of this operation.
Speaker 6: When you look at.
Speaker 15: At those outcomes that I mentioned, you.
Speaker 6: Have to break that down.
Speaker 15: What is the architecture today that one hundred and sixty
Speaker 15: billion dollars that's spent to convert revenue to cash. Eighty
Speaker 15: percent of that is labor, only twenty percent of that
Speaker 15: is technology. The technology is brittle, it does not have
Speaker 15: the ability to harness the power of these models. And
Speaker 15: we spend a lot of time and what we found
Speaker 15: was there's an abundance of raw intelligence and there is
Speaker 15: a shortage of technology companies that understand how to apply, configure,
Speaker 15: orchestrate apply that intelligence to transform an outcome. And we
Speaker 15: are really really excited to partner with Palenteer on solving
Speaker 15: that problem.
Speaker 14: The problem is government wide at the moment, are you
Speaker 14: pro or antidoja the moment are they using enough technology?
Speaker 13: Say look, I don't want to We're supposed to have
Speaker 13: a normal adult interview.
Speaker 6: Here, so I don't want to down.
Speaker 13: But I've been everywhere saying the Democrats are committing, are
Speaker 13: involved in a suicide dance, and these are There are
Speaker 13: two macro trends here. One is transparency. One is optimization
Speaker 13: of the actual work product, whether it's in government or
Speaker 13: in commercial and AI is this unstoppable trend. And it's
Speaker 13: unstoppable because you can make the actual work product better.
Speaker 13: So and you can change the union economics. There's a
Speaker 13: fancy way of.
Speaker 6: Saying, you can do it much better and much.
Speaker 13: Cheaper, and nothing is going to stop that. So what
Speaker 13: we should all be doing is finding ways to reform
Speaker 13: every institution as soon as possible. And in the commercial space,
Speaker 13: if you don't do it, your competitor is and they
Speaker 13: are going to have a much better product at a
Speaker 13: much better price, so cost of revenue.
Speaker 14: But we're worrying about defense spending getting caught, and I'm
Speaker 14: worried that that means that you're a friend gets caught.
Speaker 6: Will it.
Speaker 13: I'm in favor of whatever is good for America, and
Speaker 13: I'm in super in favor of meritocracy.
Speaker 6: Buy the best products, look.
Speaker 13: At the unit economics, and you know that should be
Speaker 13: good for our whole country, and it'll be good enough
Speaker 13: for Palenteer. I am very, very supportive of anything that
Speaker 13: brings better output at a lower cost.
Speaker 6: In a transparent manner.
Speaker 13: And by the way, this is the single biggest advantage
Speaker 13: America has. We have the most sophisticated, most intelligent, best
Speaker 13: trained corporate leaders in the world, and we have the
Speaker 13: best people from all over, including you, and we have
Speaker 13: to lean into this and that's.
Speaker 6: Going to be very very good for our country.
Speaker 13: And it's necessary because people expect the best product at
Speaker 13: the best price.
Speaker 2: And that was Alex Karp, the CEO of Palenteer and
Speaker 2: Joseph Flanagan, the CEO of r One, speaking with our
Speaker 2: own Caroline High. Let's get more detail on Pollenteer's plans
Speaker 2: and its partnerships with Bloomberg's Lazette Chapman and Lizette. You
Speaker 2: right recently that analysts expect Pallnteer's commercial revenue to actually
Speaker 2: overtake its government revenue this year. And I have to
Speaker 2: imagine that these partnerships that they're inking go a long
Speaker 2: way towards furthering that.
Speaker 4: That's the expectation for sure.
Speaker 16: You know, a Palenteer started in government and they have
Speaker 16: been expanding into commercials since then. This what we just
Speaker 16: heard about with the partnership with r one is one
Speaker 16: of a blitz of different partnerships that Palenteer has done
Speaker 16: over the past. You know, several weeks months, they also
Speaker 16: had one with TWG to totally go in and distribute
Speaker 16: its software to all of its financial institutions and insurance companies.
Speaker 16: So this is you know, them applying the same playbook
Speaker 16: to healthcare.
Speaker 3: And it seems like the word efficients exactly.
Speaker 2: It seems like the.
Speaker 3: Word efficiency is really the buzzword, especially with those running
Speaker 3: around here in Washington. Caroline actually asked doctor carp that,
Speaker 3: you know, are they seeing any kind of concerned? Are
Speaker 3: investors freaking out about the fact that cost cutting could
Speaker 3: affect their business?
Speaker 2: Here's what he had to say.
Speaker 13: We're focused on value creation, but value creation in the
Speaker 13: end will be rewarded heavily by investors.
Speaker 14: I'm by the government because investors are freaking out right
Speaker 14: now that the government isn't going to stick with.
Speaker 4: You for this cost cutting endeavor. Dot Com.
Speaker 6: I have no idea what you're talking about. Honestly, I'm
Speaker 6: not trying to be difficult here. I'm not freaking out.
Speaker 6: I'm very happy. Who's freaking out?
Speaker 14: I don't know what you're talking honest sometimes that I know,
Speaker 14: you don't.
Speaker 13: Always please freak out people are always wrong.
Speaker 6: Why don't you advise the Democratic Party? Like I mean,
Speaker 6: it is ridiculous, Liz.
Speaker 3: Thatt, I'm curious what you make of that, especially given
Speaker 3: what you've written about now the company really shifting more
Speaker 3: toward a commercial strategy here, right, it's.
Speaker 16: Not shifting from government to commercial, it's expanding. What he
Speaker 16: said is completely consistent with the message that he and
Speaker 16: the company has been giving, been given to the market
Speaker 16: and otherwise for the past you know, decade plus, I
Speaker 16: mean definitely since they went public. And the point that
Speaker 16: he's making is we don't care about these short term
Speaker 16: inflection points or that what the stock does one time
Speaker 16: or another. A reminder that he, Peter Teel, and Stephen
Speaker 16: Cohen have control of this company in perpetuity, so whether
Speaker 16: the stock jumps, you know, a lot or a little
Speaker 16: is kind of irrelevant in his mind the way that
Speaker 16: he's described it to the long term creation that they're playing.
Speaker 16: So and just to put a little asterisk onto his
Speaker 16: comment about who's freaking out, we you know, we're not
Speaker 16: freaking out again, that's consistent with kind of.
Speaker 4: What he's been saying all along and.
Speaker 16: This conflict between a lot of the retail investors and
Speaker 16: the Wall Street analysts, you know, perception of the value
Speaker 16: of this company, with it being very much a retail
Speaker 16: driven stock.
Speaker 2: Right, there's differing perspectives there, differing timelines, and it's important
Speaker 2: to keep that in mind. Something else that carp has
Speaker 2: said previously is that quote untamed demand for its AI
Speaker 2: tools has outstripped supply. Take us into that supply and
Speaker 2: demand dynamic. Is that's still the case.
Speaker 4: Oh sure, that's a great question.
Speaker 16: The way that he was framing that was basically, they
Speaker 16: didn't have a salesforce to go and sell this software.
Speaker 16: They simply hadn't expanded that muscle. And so what they
Speaker 16: did is they created a series of boot camp packathons
Speaker 16: where they have coders go sit side by side with
Speaker 16: maybe an executive lead from one of these companies. I
Speaker 16: attended one that was in Detroit with you know, VW
Speaker 16: and Lear and Caterpillar and a number of other ones.
Speaker 16: And the idea there was to get people on prem
Speaker 16: quickly and teach them how to use it and.
Speaker 4: Have it sell itself.
Speaker 16: So that was what he was referring to with untamed demand.
Speaker 16: They can't keep up with it. They just didn't have
Speaker 16: enough people to sell it. So we'll uh, that's something
Speaker 16: that will be interesting to continue to track.
Speaker 3: That was Bloomberg's Lysette Chapman, Thanks so much for joining us.
Speaker 4: Still coming up near him.
Speaker 3: Rivera of OOH Ventures joins us to talk about why
Speaker 3: the firm isn't pulling back from DEI focused investing under
Speaker 3: the Trump administration.
Speaker 2: This is Bloomberg.
Speaker 3: Now it's time for our VC. Spotlight h Ventures recently
Speaker 3: announced it's fourth fund. The firm investment in seed stage
Speaker 3: startups with a focus on diverse founders. CEO and managing
Speaker 3: partner Miriam Rivera is here with us to talk about
Speaker 3: this more. Miriam, this is quite a time for anything
Speaker 3: focused on diversity, equity and inclusion. Talk to us about
Speaker 3: the process of raising a fund in an environment like this.
Speaker 17: Well, this is a challenging time to raise a fund,
Speaker 17: but fortunately we were out of the market before the
Speaker 17: election results were in. The challenge that we experienced during
Speaker 17: our time was really the bank failures was the predominant
Speaker 17: issue that scared investors, and fortunately the federal government did
Speaker 17: support the depositors at Silicon Valley Bank and First Republic
Speaker 17: Bank and other banks in the country that were impacted
Speaker 17: and that had a particular potential to impact the tech economy.
Speaker 3: One of the things it feels like forever ago actually
Speaker 3: that we saw Silicon Valley Bank really tumble.
Speaker 2: But the other kind of big.
Speaker 3: Question around seed seed stage investing because it takes so
Speaker 3: much I think kind of.
Speaker 2: A real skill there.
Speaker 3: You're really placing a bet on a founder, on a person,
Speaker 3: it's usually before they've started generating any revenue. How are
Speaker 3: you seeing the opportunity set in that part of the
Speaker 3: market at a time when any company that isn't in
Speaker 3: the AI space is having a hard time raising.
Speaker 17: Well, it's true that there's been a concentration of capital
Speaker 17: in larger funds and also.
Speaker 4: In areas like AI.
Speaker 17: We've been investing in AI machine learning for over fifteen years,
Speaker 17: so that is not new. I think what is new
Speaker 17: is that this is a real infrastructure play, and that's
Speaker 17: one reason why a lot of capital is going in
Speaker 17: that direction. We tend to be focused on the application
Speaker 17: layer at Blue Ventures, and so really a time of
Speaker 17: great opportunity is coming as all these other foundational ais
Speaker 17: are built and then they can be applied in different
Speaker 17: sectors of the economy, all areas including healthcare, legal, tech, education.
Speaker 17: We're investing in many of the applications that are benefiting
Speaker 17: from AI and helping to bring low cost technology to
Speaker 17: areas where perhaps they hadn't had as much access because
Speaker 17: of the cost of software.
Speaker 2: Well, Miriam Jackie touched a little bit on the macro environment.
Speaker 2: I want to talk about the political environment a little
Speaker 2: bit here, because you have this focus on investing in
Speaker 2: diverse founders, investing alongside in verse diverse founders, and we
Speaker 2: know that this administration really has strongly criticized DEI and
Speaker 2: there's been a massive pullback at least at the government
Speaker 2: level here. What do you make of that and does
Speaker 2: that mean anything for your strategy?
Speaker 17: Well, our belief is that diversity is in investment thesis
Speaker 17: for us.
Speaker 4: We believe that's how we're going to financially outperform.
Speaker 17: And part of the reason is that seventy percent of
Speaker 17: Americans fall into a bucket called diversity. We're talking about women,
Speaker 17: we're talking about people of color, we're talking about underrepresented
Speaker 17: minorities such as black and Latin X, and we're talking
Speaker 17: about immigrant Americans. Turns out that's the majority of Americans.
Speaker 17: So I believe that anybody who isn't investing in diverse
Speaker 17: founders is really giving up the opportunity to be part
Speaker 17: of the tradition of this gay country of benefiting from
Speaker 17: the talent that we have wherever it comes from. That's
Speaker 17: one of the most important things about entrepreneurship. It is
Speaker 17: one of the few bipartisan aspects of our society today. Politically,
Speaker 17: everyone believes that Americans should have a right to start
Speaker 17: businesses that they are able to bring benefit to the economy,
Speaker 17: and that's what we're trying to do. Of our founders
Speaker 17: are diverse, meaning they fall into one of the categories
Speaker 17: that I mentioned, and eighty percent of our teams also.
Speaker 4: Include white people, so it is not exclusionary.
Speaker 17: Diversity means we have all permutations of founders on our teams.
Speaker 3: Given you really a focus on the earlier stage companies,
Speaker 3: I'm curious how you're looking at the pipeline of talent
Speaker 3: flowing into Silicon Valley, particularly at a time when funding
Speaker 3: for universities is really starting to get pinched. Is this
Speaker 3: a moment where the venture community could really step in
Speaker 3: given so many of these schools really do provide the
Speaker 3: talent that Silicon Valley relies on.
Speaker 17: Well, I think it's really important to say that our
Speaker 17: university system is one of the best in the world.
Speaker 4: It is one that is emulated throughout.
Speaker 17: Entrepreneurship in America is emulated throughout the entire world. I
Speaker 17: have been in ecosystems internationally dozens of times, and they're
Speaker 17: trying to implement American entrepreneurship, American venture capital type investing
Speaker 17: in many emerging economies around the world. The universities are
Speaker 17: a foundational piece of that, and the research that is
Speaker 17: done at those institutions benefits all Americans and frankly the
Speaker 17: entire world. When we do healthcare research, when we do
Speaker 17: technology research, we end up creating the future businesses that
Speaker 17: drive our economy. You had Alex Karprum Pollenteer on we
Speaker 17: were an early investor and Pallenteer Pallunteer. Alex is half black,
Speaker 17: half Jewish.
Speaker 4: One of his co founders is gay and an immigrant.
Speaker 17: This is America and this is what is driving the
Speaker 17: future of our economy.
Speaker 2: Well, that's a good note to leave it on. Miriam,
Speaker 2: great to get some time with you. That is Miriam Rivera.
Speaker 2: She's is CEO of Ulu ventures. Thank you for joining us.
Speaker 6: All right?
Speaker 2: It signed now for Talking tech and first Up. Shean's
Speaker 2: executive chairman, Donald Tang, says he's committed to taking the
Speaker 2: company public. This comes as the company grapples with accusations
Speaker 2: that tolerated labor violations among Chinese suppliers and tariff challenges
Speaker 2: from the Trump administration. She In confidentially filed papers in
Speaker 2: June for a London listening. Plus, Ubisoft is said to
Speaker 2: be on the hunt for new investors and is considering
Speaker 2: selling a minority stake in a new venture. That's according
Speaker 2: to people familiar. The game maker has contacted potential bidders,
Speaker 2: including current shareholder Tencent, and has asked for preliminary bids
Speaker 2: to be made as soon as this month. And finally,
Speaker 2: British and US officials have held talks to alleviate concerns
Speaker 2: that the UK is trying to force Apple to build
Speaker 2: a backdoor into encrypted data. That's according to sources, This
Speaker 2: comes just weeks after Apple removed its encrypted security features
Speaker 2: for cloud data in the UK in response to a
Speaker 2: British order that asked Apple to circumvent encryption. Meanwhile, let's
Speaker 2: stay on Apple because the company is said to be
Speaker 2: working on incorporating a live translation feature into its AirPods
Speaker 2: in a future software update. Bloomberg's Mark German broke this news,
Speaker 2: of course, and he joins us now for more so
Speaker 2: talk us through the opportunity set that Apple potentially sees here.
Speaker 2: Because you think about some of its rivals. You have
Speaker 2: Google Pixel buds, for example, they already have this option.
Speaker 18: Yeah, Katie, thanks for having me. So this is a
Speaker 18: bit of a catchup feature, but this is becoming a
Speaker 18: standard enhancement in earbuds lately. Right, Like you mentioned, Google
Speaker 18: has this, Samsung's going to have it at some point
Speaker 18: in a big way. Now Apple's going to have it
Speaker 18: later this year. The way it works is you could
Speaker 18: be wearing the earbuds, right, You could be an English
Speaker 18: speaker speaking to someone who's talking to you in Japanese
Speaker 18: for instance, right, and as they're speaking that Japanese will
Speaker 18: live translate into English into your years and when you
Speaker 18: speak back, you'll show them your phone or other Apple
Speaker 18: device and what you speak in English will be translated
Speaker 18: into Japanese for them to read.
Speaker 8: Right.
Speaker 18: So this is a feature that Google's had, but it's
Speaker 18: important for Apple to have it too. The big picture
Speaker 18: here is they're trying to turn the AirPods into their
Speaker 18: own ecosystem, into their own product line.
Speaker 10: Into something that people know they.
Speaker 18: Can buy, right, but understand that there's going to be
Speaker 18: softwareupdates over time that make it better and better. The
Speaker 18: same store you get with the Mac, the iPhone, the iPad,
Speaker 18: et cetera.
Speaker 2: Well Mark in the last minute I have with you,
Speaker 2: that's where I wanted to go because you think about
Speaker 2: the air pods, it feels like that has really been
Speaker 2: a focus for Apple here, and I think back to
Speaker 2: your reporting around hearing health.
Speaker 6: They're trying to.
Speaker 2: Introduce that into the AirPod as well. So just lay
Speaker 2: out the vision for the AirPod ecosystem here.
Speaker 18: Well, the growth for Apple is not on their existing products, right,
Speaker 18: It's about the accessories, it's about the services, it's about.
Speaker 10: The attachments, right.
Speaker 18: So they need to make the air pods as good
Speaker 18: as they can to create that growth. There are a
Speaker 18: lot of people who have iPhones, but not all of
Speaker 18: them have AirPods, not all of them have Apple Watches,
Speaker 18: not all of them have other peripheral so they want
Speaker 18: to make those peripheral products as good as possible, as
Speaker 18: interesting as possible. To get more people using it. They
Speaker 18: also want people on old AirPods to upgrade to new AirPods.
Speaker 18: This translate feature like the hearing health feature. This is
Speaker 18: an airpod's pro feature. Right, These are going to create
Speaker 18: differentiation between the lower end AirPods. They just updated those
Speaker 18: the older headphones, some of the older AirPods. This is
Speaker 18: another way to get people to upgrade.
Speaker 2: All right, Mark, great reporting as always, That is Bloomberg's
Speaker 2: Mark German. Meanwhile, that does it for this edition of
Speaker 2: Bloomberg Technology. Don't forget to check out our podcast. You
Speaker 2: can find it on the terminal, online, Apple, Spotify, and
Speaker 2: on iHeart. Have a great weekends. This is Bloomberg