Speaker 1: Bloomberg Audio Studios, Podcasts, radio news from Marhart.
Speaker 2: We're Innovation, Money and Power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroline Hyde at Bloomberg's world headquarters in New York and.
Speaker 4: I met Lovelow in San Francisco. This is Bloomberg Technology.
Speaker 5: Coming up full coverage on guess what in video? You
Speaker 5: know it.
Speaker 3: Pushing ahead to that all important earnings after the closing.
Speaker 4: Bell, Plus Apple looks to get its doj antitrust case
Speaker 4: tossed out.
Speaker 5: We'll bring you the details and scale.
Speaker 3: AI excures one billion dollars in funding as its valuation
Speaker 3: nearly doubles to almost fourteen billion. CEO Alexander Wang going
Speaker 3: to be joining us later in the hour, but first
Speaker 3: and let's check in on these markets because there's a
Speaker 3: macro bit of data. We were waiting for the FED
Speaker 3: minutes coming a little bit later in the afternoon, and
Speaker 3: we're basically flat. Ahead of that, we're still digesting some
Speaker 3: really strong earnings that have come from the tech ecosystem.
Speaker 3: We Bracewort and Video brings us and we're up just
Speaker 3: five points on the Nasdaq. But remember new record highs
Speaker 3: after record highs, we're looking at twenty a yield just
Speaker 3: flat ahead of an all important auction. We had seen
Speaker 3: bond selling off, yields rising. Now we managed to go
Speaker 3: back into the green just a moment. Pound I look
Speaker 3: at because inflation, yes, it is cooling, but it is
Speaker 3: not cooling as much.
Speaker 5: As the market wanted to see.
Speaker 3: The pound is higher events as the US dollar, as
Speaker 3: potentially we see the Bank of England not being able
Speaker 3: to cut at the anticipated rate that the market had
Speaker 3: wanted to see. Let's move on and see what's happening
Speaker 3: in the world of crypto, because suddenly, out of nowhere
Speaker 3: we regalvanize ourselves. Potentially the latest spot etf this one
Speaker 3: being an ether an ethereum related one. Thoughts and prayers
Speaker 3: to all those who are the lawyers or the compliance
Speaker 3: folks having to get the data, having to get the
Speaker 3: documents ready. We're currently down by a tenth of a
Speaker 3: percent on ether as we speak, bened What are you watching?
Speaker 4: It has been called the mother of all earnings. It's
Speaker 4: been labeled as the single most important stock on the planet,
Speaker 4: and that when you say AI industry, you are talking
Speaker 4: about in video in video reports earnings after the bell.
Speaker 4: The stakes are incredibly high, and we want to continue
Speaker 4: to see year on year top line growth in excess
Speaker 4: of two hundred percent. I also look at the market
Speaker 4: capitalization of this company. When you think about how high
Speaker 4: the stakes are, it's a lot, right, and so what's
Speaker 4: going to happen? I know a lot of you in
Speaker 4: our bloombog technology audience look at demand signals, You look
Speaker 4: at the commentary from the hyperscalers, you look at all
Speaker 4: the news stories about the AI startups training models, whether
Speaker 4: or not they secured h one hundred clusters, and you
Speaker 4: look at some of the sovereign AI discussion that's happening.
Speaker 4: There is a lot at stake, Carrow. We're very excited
Speaker 4: about it. The expectation, though, is probably that in Vidia
Speaker 4: and Jensen knock it out of the park.
Speaker 3: Yeah, and how often do you get to see two
Speaker 3: hundred percent increases in a quarterly revenue?
Speaker 5: It ain't much.
Speaker 3: Let's talk about Nvidia now reporting earnings after that bell.
Speaker 3: Here's what in Vidia CEO Jenson Wang had to say
Speaker 3: about his outlook for AI just earlier this week with
Speaker 3: you ed.
Speaker 6: We've re engineered and reinvented every layer of computing, from
Speaker 6: the chip to the operating system, to the system servers,
Speaker 6: to the way that these data centers are put together.
Speaker 6: We want to bring this generaltive AI capability to every
Speaker 6: company in the world.
Speaker 5: From the man himself.
Speaker 3: So yeah, the key voice we want to bring on
Speaker 3: right now, Blue meg Intelligence senior analyst Man Deep saying,
Speaker 3: because there is a lot of hope and market valuation
Speaker 3: riding on these set of numbers.
Speaker 7: Yeah, look, I think they probably will guide to twenty
Speaker 7: five billion in data center revenue because that's what everyone
Speaker 7: cares about right now, and it's higher than consensus. So
Speaker 7: you know, the byside bogie here is higher than consensus.
Speaker 7: Anything in line with consense would have a negative knee
Speaker 7: jerk reaction, and they'll do it. The question to me
Speaker 7: is how much of their new black Quall chip is
Speaker 7: used for training and then what are the existing chips
Speaker 7: in terms of you know, the inferencing side of the equation,
Speaker 7: because once you pass through that lens, you will get
Speaker 7: a sense of, you know, is this sustainable in terms
Speaker 7: of triple digit growth? Probably that's not going to happen
Speaker 7: given the comps get tougher in the second half. But
Speaker 7: in terms of sustaining high double digit growth, it comes
Speaker 7: down to whether Nvidia will be a big player in inferencing,
Speaker 7: and last quarter Jensen said they have a forty percent
Speaker 7: share in inferencing. Everyone questions that, so we will be
Speaker 7: looking for update around inferencing because look, Microsoft announced a
Speaker 7: new PC with Qualcomm chip. Intel is probably doing something
Speaker 7: around their own chip. Apple will announce something around on
Speaker 7: device GENII. That's all inferencing. So Nvidia having inferencing share,
Speaker 7: it comes down to do they have a play with
Speaker 7: the hyperscale cloud vendors Amazon, Microsoft and Google using in
Speaker 7: Vidia for inferencing And the answer is they'll probably end
Speaker 7: up using their own chips for inferencing. Why would they
Speaker 7: use in video for inferencing given the SP's you know,
Speaker 7: in video commend expensive.
Speaker 4: Yeah, Monday, I appreciate that answer so much. I've been
Speaker 4: thinking a lot about generations of technology. So all of
Speaker 4: this is built on H one hundred, right, and a
Speaker 4: lot of people worry there's this air pocket where H
Speaker 4: two hundred, the next generation with high bandwidth memory is
Speaker 4: ramping up, and then you're Blackwell later in the year,
Speaker 4: you're an analyst that looks at this company. Are you
Speaker 4: concerned that the end market say, why would I buy
Speaker 4: H one hundred like the next best things coming?
Speaker 1: I'll just wait.
Speaker 7: I mean, there were rumors around that with Amazon yesterday.
Speaker 7: But look right now the market is undersupplied and everyone
Speaker 7: wants to get a hold of whatever they can for
Speaker 7: training their llms. It comes down to who are the
Speaker 7: big LLLM players. And we know that field is consolidating
Speaker 7: a number of them have actually thrown in the towel.
Speaker 7: They're getting acquired by larger you know, hyperscalers, So that
Speaker 7: field is narrowing. The second vector that drives that is
Speaker 7: the size of the model.
Speaker 1: If the size of.
Speaker 7: The model is growing, then you need more a bigger
Speaker 7: cluster and probably H two hundred or a black belt
Speaker 7: series will have more performance. In fact, Google said their
Speaker 7: TPU six is five times faster than their TPU five.
Speaker 7: What does it tell you that, you know, the performance
Speaker 7: increases are there, And if you're a hyperscaler that's buying
Speaker 7: ten billion dollars of Invidia chips, you would want to
Speaker 7: see that higher performance chip as opposed to you know,
Speaker 7: the last generation. So all that is a risk, I
Speaker 7: mean in the end, in Nvidia has a fifty percent
Speaker 7: you know, exposure to hyperscalers and these are very concentrated customers,
Speaker 7: five to six customers making a fifty percent of their
Speaker 7: data center revenue.
Speaker 3: They've still got some dependency on China. China can't have
Speaker 3: the most sophisticated chips. Will we hear anything about exposure there?
Speaker 7: I mean, we know that's going down. It's almost mid
Speaker 7: single digit of their revenue, but that's a market where
Speaker 7: they could have seen an upside. Surprises. Every company in
Speaker 7: China is training their own llms. Again, it comes down
Speaker 7: to training market. How big is the training market and
Speaker 7: how many players are there. I would say, you know,
Speaker 7: the top six llms are based out of United States
Speaker 7: and then the next five are in China. But if
Speaker 7: in Video can't sell their latest chips to the China market,
Speaker 7: that kind of takes some of the upside out at
Speaker 7: least in the near term. And we don't know how
Speaker 7: this geopolitical situation will pan out.
Speaker 4: This is a really big finale to what it has
Speaker 4: been an incredible earning season and Video after Bell and
Speaker 4: Bloomberg Intelligence senior analyst Man keep saying, great setup for
Speaker 4: us coming up on the program. We're going to talk
Speaker 4: about optimism in the crypto industry amid science of Ether
Speaker 4: ETF approval. Look, we've got Jack Mallard's Strike CEO on
Speaker 4: set New York City, Caro. What are you looking at?
Speaker 3: IM just having a kicken eye on what else is
Speaker 3: reporting after the ballad. Snowflake shares actually up about half
Speaker 3: a percentage point, but there has been anxiety that revenue
Speaker 3: growth for this particular software business is expected to slow
Speaker 3: to twenty six percent from forty eight percent last year.
Speaker 3: It says companies look prioritized, of course jenerator AI over
Speaker 3: traditional data warehousing. But where does that competitive landscape evolve
Speaker 3: for Snowflake. We wait to see if revenue can indeed
Speaker 3: hit the seven hundred and eighty six million dollars anticipated.
Speaker 5: This is Bloomberg Technology.
Speaker 4: Okay, So I'm looking at Ether and there's been a
Speaker 4: lot of energy and ether over the last five days,
Speaker 4: just like bitcoin trading. Twenty four to seven, Bloomberg reported,
Speaker 4: citing sources, that the SEC had instructed the New York
Speaker 4: Stock Exchange and the cbo WE to update regulatory filings
Speaker 4: basically that relate to changing rules that would make the
Speaker 4: approval of a spot ether ETF more likely, and the
Speaker 4: market kind of got caught by surprise as if it
Speaker 4: wasn't priced in. And like Caro said at the top
Speaker 4: of the show, you've got compliance officers and chief legal
Speaker 4: officers everywhere going, wait, this isn't supposed to happen this quickly.
Speaker 4: And we learned from our bitcoin experience it ain't linear,
Speaker 4: it doesn't go in a straight line, but people are
Speaker 4: now excited about it. And you look at the performance
Speaker 4: of the two right ether totalized version of the Ethereum blockchain,
Speaker 4: the kind of underpinnings of this industry, the gaps closing
Speaker 4: with Bitcoin a little bit, and Cara, I guess the
Speaker 4: point I'm making is that the market's kind of surprised,
Speaker 4: and I guess you and I might be a bit
Speaker 4: surprised that we're talking about this in this context. And
Speaker 4: looking at the chart behind me, tell.
Speaker 3: You what many people feel really moved the market. It
Speaker 3: was actually Bluemberg intelligence about tunis raising its probability that
Speaker 3: the spot ether ETF was going to come and the
Speaker 3: market we've done that amazing. Well, we're going to talk
Speaker 3: about someone who's we need to the bitcoin scene and
Speaker 3: what he thinks about the Ethereo METF as well. Strike
Speaker 3: CEO Jack Maner is always great to have you on
Speaker 3: the show. Thanks coming in to the studio. You, of
Speaker 3: course very much focused on functionality and building upon Bitcoin.
Speaker 3: What do you think though of a ETF yet more
Speaker 3: institution money potentially coming into the smart contract side of
Speaker 3: the equation.
Speaker 8: Yeah, I'm not a fan of any other cryptocurrency outside
Speaker 8: of Bitcoin, but I think there is a hilarious story
Speaker 8: as to why this is happening. I mean, I was
Speaker 8: laughing out loud. It looks like someone went to Gary
Speaker 8: Gensler and said, hey, buddy, you're not in charge anymore.
Speaker 8: And you'd have to think why that was. It's because
Speaker 8: banks and Wall Street are making money.
Speaker 2: Right.
Speaker 8: Banks get a really bad deal in today's market, is
Speaker 8: they have to buy bonds that are performing awfully, and
Speaker 8: all of a sudden they get a free market in
Speaker 8: this independent crypto thing and they're actually making money. These
Speaker 8: markets have life, These markets go up when governments debase
Speaker 8: their currency. These things perform well. And they got to
Speaker 8: take of bitcoin and it was the best performing product
Speaker 8: that they've ever had, and they're like, oh man, how
Speaker 8: many other pieces of crap are there out there? That
Speaker 8: we can list as ETFs, and I literally think that's
Speaker 8: what's happening. It's a way better business to launch crypto
Speaker 8: ETFs than it is to buy bonds right now based
Speaker 8: on the macro environment. So I think someone said, hey, Gary, sorry, buddy,
Speaker 8: despite you thinking that these things are securities, we need
Speaker 8: to make money, and that's what happened.
Speaker 3: It's funny that you bring up Gary against because, of
Speaker 3: course the House of Representatives currently taking on a bill
Speaker 3: at the moment as to whether it should be the
Speaker 3: sec at AOL overseeing crypto products more generally, or whether
Speaker 3: it should be shifted. But to your point, whether or
Speaker 3: not Ethereum does indeed manage to become spot traded with
Speaker 3: an ETF and.
Speaker 5: Money coming in. There's a real organization.
Speaker 3: Of some of the documents because they don't want to
Speaker 3: see staking involved in any way. How do you think
Speaker 3: about what that means for an investment opportunity?
Speaker 8: I listen again, I'm a bitcoin guy. I think all
Speaker 8: of this is a distraction and a load and nonsense.
Speaker 8: I think what they're trying to do is walk the
Speaker 8: fine line of how can we justify banks and Wall
Speaker 8: Street making more revenue on this industry? Because with all
Speaker 8: passive investing and central banks really trying to price control everything,
Speaker 8: this market has life, and if it has life, it
Speaker 8: means there's an opportunity to make money. Volatility is a
Speaker 8: good thing. People on Wall Street like volatility, so they're
Speaker 8: trying to find a way to justify and make happy
Speaker 8: in peace with existing securities laws while giving these Wall
Speaker 8: Street and these big banks like JP Morgan an ability
Speaker 8: to monetize this space and actually make money because the
Speaker 8: business they're in right now is awful. I mean, you're
Speaker 8: needing to buy bonds, lend money to the government and
Speaker 8: not get paid the growth that they're e's eve been.
Speaker 3: Doing quite well. I mean, there are certain parts of
Speaker 3: the finance. I get your point. The financial institutions still
Speaker 3: been doing quite well in the rest of the markets.
Speaker 3: But there's yeah, ebrtually a role for banks to play here,
Speaker 3: which could also be going through bigulary.
Speaker 8: Yeah, but I think listen, the S and P five
Speaker 8: hundred is dominated by what like the top seven companies,
Speaker 8: and they're all tech companies. Tech companies don't care about
Speaker 8: the cost of capital. They don't need business loans, Facebook, Apple,
Speaker 8: these company copanies can finance their business with their existing
Speaker 8: cash flows, and so the rest of the world is
Speaker 8: in a pain of hurt and banks right now their
Speaker 8: whole job is to take our deposits and buy bonds,
Speaker 8: and these bonds are getting slaughtered, and all of a
Speaker 8: sudden they're like, Wow, here's a market with life. Here's
Speaker 8: a market with retail flows. Here's a market that has
Speaker 8: volatility and that is actually reactive to the outside world. Hey,
Speaker 8: how many of these crypto things exist?
Speaker 5: Hey?
Speaker 8: Gary, except them all? So I wouldn't be surprised if
Speaker 8: we got a Subaduchie coin. What did I say on here?
Speaker 8: We should get a Subaduchie ETF soon. Seriously, I really
Speaker 8: think they're just trying to actize it. Jack.
Speaker 4: Let's go back to basics here. There will be members
Speaker 4: of the Bloomberg tetlas the audience that push back on
Speaker 4: I'm paraphrasing a spot eth ETF being the next listing
Speaker 4: of a piece of crap. There's a standard tagline in
Speaker 4: our Bloomberg Cabaret coverage, which is the ether is a
Speaker 4: native token of ethereum, and ethereum is the most widely
Speaker 4: commercially used blockchain. What would be your response to that
Speaker 4: standard line?
Speaker 8: Sure, okay, and I apologize to all those I offended.
Speaker 8: Here's my point. Bitcoin is the only money within the
Speaker 8: cryptocurrency space. It's designed and treated as a monetary asset.
Speaker 8: So then what do I think ethereum is. I think
Speaker 8: ethereum is a technology, which you actually just displayed in
Speaker 8: your introduction and definition of it. Ethereum appeals to developers.
Speaker 8: They change the monetary policy and the rules all of
Speaker 8: the time. However, the market often conflates it as a money,
Speaker 8: conflates it as a commodity, strike as a technology, and
Speaker 8: video is a technology. These things are regulated by the SEC.
Speaker 8: These things have cash flows, These things have founders, directors,
Speaker 8: people that set the roadmap. And so when I say
Speaker 8: a piece of crap, maybe I'm being a bit aggressive,
Speaker 8: but I think it's distinctly different from bitcoin. I think
Speaker 8: bitcoin can be the world reserve asset, the one money
Speaker 8: that we use to store our time and energy. And
Speaker 8: I think ethereum can be a technology which competes within video.
Speaker 8: But then it gets confusing. It's like, well, what's their
Speaker 8: cash flows? Who founded it, who sets the direction? Why
Speaker 8: does it change so much? And when it does change,
Speaker 8: why does it change? I think that there's a lot
Speaker 8: of intentional confusion going on in the story, and as
Speaker 8: a bitcoiner, it frustrates me because I'm trying to fix
Speaker 8: the money, fix the world, and so I think that
Speaker 8: there's a lot the market has to sort out as
Speaker 8: to what it actually is and how to value it.
Speaker 3: Jack Man has come back with your messaging and come
Speaker 3: on the show from San Francisco as well. Strike CEO
Speaker 3: Jack maners on all things crypto. I mean, while we
Speaker 3: do have some breaking news coming from the UK, there
Speaker 3: has been a lot of rumor swirling about whether or
Speaker 3: not we'll see a summer election called by Rishie Sunak,
Speaker 3: the current Prime Minister UK. Sunac will call a summer
Speaker 3: election this afternoon, that's being reported by The Guardian. He
Speaker 3: is going to call that election for July, so the
Speaker 3: Guardian reports now.
Speaker 5: Thus far, Bloomberg has.
Speaker 3: Been reporting that there has been repeated affirmation that there
Speaker 3: will be an election in twenty twenty four in the
Speaker 3: second half of the year.
Speaker 5: The nuance is exactly when that second half.
Speaker 3: Is politics out of the United Kingdom, Rishi Sunac, the
Speaker 3: Prime Minister, likely to call an election for as soon
Speaker 3: as July, as being reported by the Guardian, now we
Speaker 3: know that there's been plenty of rumors, particularly accentuated by
Speaker 3: the inflation report that came out of the UK today,
Speaker 3: which showed, even though it was higher than the market
Speaker 3: and anticipated, inflation is slowing closer to where the Bank
Speaker 3: of England's key rate of two percent.
Speaker 5: Level target is ed.
Speaker 3: This is notable because there has been much frustration with
Speaker 3: a way in which Rissi Sunac, leader of the Conservative Party,
Speaker 3: Prime Minister of the UK, has been able to inject
Speaker 3: or not the economic recovery into over the UK. The
Speaker 3: labor the alternative party in the UK needs by many
Speaker 3: points in terms of how perhaps voters would lean, and
Speaker 3: notable that he wants to well accelerate any sort of
Speaker 3: putting them to the polls well.
Speaker 4: According to the Guardians reporting July would be sooner than
Speaker 4: the sort of general wisdom which it was that Prime
Speaker 4: Minister Sunak would wait until the autumn. His consistent line
Speaker 4: has been that there would be a vote in the
Speaker 4: second half of the year. But the rationale or thinking
Speaker 4: that he'd wait to the autumn is that there is
Speaker 4: a cost of living crisis in the United Kingdom. Basically
Speaker 4: and strategically, he and the Conservative Party the thinking was
Speaker 4: would hold into the autumn to let that cost of
Speaker 4: living crisis dissipate somewhat ease off and then have more
Speaker 4: favorable environment. But you're completely right that if you go
Speaker 4: off the polls, which one always approaches with caution, then
Speaker 4: the Conservatives do lead trail the opposition Labor Party.
Speaker 3: We can go out to Lizzie Burdon, who's over in
Speaker 3: the United Kingdom covering the political storytelling there, and at
Speaker 3: the moment, Lizzie, it looks as though the Guardian is
Speaker 3: giving us a month at least that we could see
Speaker 3: a general election. It's being cited by some senior those
Speaker 3: close to Rashid Zunac himself.
Speaker 9: And lead up downing too. They always are being rightly
Speaker 9: takes in Oxford twenty twenty two when Boris Johnson said
Speaker 9: down and Ricky see that came in put somewhere in
Speaker 9: between that look all day, which you see how this
Speaker 9: has the opportunity to deny that you're going before the
Speaker 9: July elected. He's had unto opportunity and he's reflected at
Speaker 9: the champ having It is ongoing currently the Letios administ
Speaker 9: and has been for the past twenty a few minutes
Speaker 9: it's old executive thing. We've come when he put a
Speaker 9: Pilar Bailer who is only on the grounds for about
Speaker 9: two hours, and the defense granted that. The gold tip
Speaker 9: states for I've been twenty to a big announcement, and
Speaker 9: here he had to gude.
Speaker 4: Yeah, Lizzie, Sorry, sorry to interrupts you. Here we're getting Lizzie,
Speaker 4: give me a second. Here, we're getting some more headlines
Speaker 4: on the Bloomberg terminal, this time Sky News reporting that
Speaker 4: a UK general election will be on July fourth, a
Speaker 4: more specific date than the Guardian was giving. We now
Speaker 4: have two reports from two different U outlets or news
Speaker 4: organizations that there will be a general election in July.
Speaker 4: I want to bring in Bonnie Quinn and talking a
Speaker 4: little bit more about the UK economy here, Vonnie, because
Speaker 4: this is an issue of timing and strategy. July is
Speaker 4: sooner than expected, and it's sooner than expected because Rishi
Speaker 4: Sunac faces a difficult domestic economic picture that will inform
Speaker 4: voters minds exactly.
Speaker 9: Ed.
Speaker 10: Well, let's talk about that inflation data that came in earlier,
Speaker 10: coming into five point three percent, which was higher than
Speaker 10: most analysts and economists were anticipating. Services inflation two point
Speaker 10: three services inflation at five point nine percent, which really
Speaker 10: shows that inflation is entrenched. Rishi Sunac would have been
Speaker 10: hoping for that to come down and for there to
Speaker 10: have been a few more months of data showing better
Speaker 10: inflation figures.
Speaker 5: He's not getting that.
Speaker 10: Interestingly, the Bank of England, which had been expected to
Speaker 10: maybe make it cut in June. Banks have been pushing
Speaker 10: their estimates for.
Speaker 5: That first cut out.
Speaker 10: In fact, just the most recent bank to do that
Speaker 10: was Goldman sachsing that's most likely August now for there
Speaker 10: to be a snap election, that makes life a lot easier,
Speaker 10: right because if there were to be a snap election
Speaker 10: in July, as some outlets are reporting, that would mean
Speaker 10: that June would be a very contentious time to make
Speaker 10: a raid cut. If the cut isn't going to happen anyway,
Speaker 10: as most banks are now anticipating, well, that makes it
Speaker 10: maybe easier to get an election out of the way. However,
Speaker 10: Chancellor Jeremy Hunt has a difficult job in that position then,
Speaker 10: because if he's not going to be the Chancellor anymore
Speaker 10: than it falls to possibly Labor's Rachel Reeves. That's the
Speaker 10: person that markets are anticipating would enter a number eleven
Speaker 10: in the event of a snap election with a better
Speaker 10: Labor result, and then it's her bag, right, And the IMF,
Speaker 10: as we know, has been calling for raid cuts this
Speaker 10: year and more next year, trying to bring to that
Speaker 10: bank rate all the way down to about three and
Speaker 10: a half percent by the end of twenty twenty five
Speaker 10: in order to relieve this cost of living crisis which
Speaker 10: is ongoing now three years ed.
Speaker 3: And let's just talk about Rachel Reeves, who of course
Speaker 3: is the Shadow Chancellor, meaning she's in the opposition party
Speaker 3: of Labor led by Seki Stama, and they have been
Speaker 3: well ahead in terms of the polls thus far, and
Speaker 3: the Labor leader has indeed been recently launching his six
Speaker 3: Pledges first steps to guiding the UK going forward.
Speaker 5: And it's not just all about here and now of inflation.
Speaker 3: It's a lot about healthcare, access to NHS waiting lists,
Speaker 3: and of course that comes down to funding.
Speaker 5: Vonny.
Speaker 3: More broadly, would it be the viewpoint from the economy
Speaker 3: here that Labour would in any way change.
Speaker 10: The trajectory, Well, changing the trajectory is one thing.
Speaker 5: Promises are another thing, Caroline.
Speaker 10: So for sure Rachel Reeves has constantly said that you
Speaker 10: would increase government spending in order to help along the
Speaker 10: lines of healthcare, national insurance and pensions in particular, which
Speaker 10: is going to be a very contentious issue for the
Speaker 10: next chancellor. That said, the IMF has said you can't
Speaker 10: do it. You can neither decrease taxes nor increase government spending.
Speaker 10: The economy won't be able to take it. You are
Speaker 10: risking growth. And remember the UK just came out of recession.
Speaker 5: In the first quarter.
Speaker 10: It grew point six percent and that was a big
Speaker 10: relief to the authorities, but that could be in jeopardy
Speaker 10: if there were to be more spending.
Speaker 5: At least according to the IMF.
Speaker 3: Buddy Quinn, there were the latest.
Speaker 4: Welcome back to Blindow Technology, Ed love Low in San
Speaker 4: Francisco and.
Speaker 5: Caroline Hied in New York.
Speaker 3: Let's check in on these markets because there is a
Speaker 3: wait and see feel to the broader indexes. Today we've
Speaker 3: hit record high after record high on the SMP, on
Speaker 3: the Dow, and indeed on our trusted tech benchmarks. I'm
Speaker 3: looking at the NASDAT one hundred currently holding on to
Speaker 3: gains up two tens percent as the all important set
Speaker 3: of numbers come out after the mall in Nvidia, key
Speaker 3: to market capitalization, key to the optimism around AI.
Speaker 5: For the rest of the benchmarks, I'm looking.
Speaker 3: What's happening with the US tenure yield basically training Flattenman.
Speaker 3: We've got a big twenty year auction and also fed
Speaker 3: minutes coming to really pass through for the market. That's
Speaker 3: at lunchtime basically up about a tenth of a percent.
Speaker 3: That's as we do potentially anticipate yet another spot ETF,
Speaker 3: this one linked to ethereum. We'll see if that continues.
Speaker 3: Let's move on and have a look at what's happening
Speaker 3: from a macro perspecture.
Speaker 5: Across the pond. Great British pound.
Speaker 3: Currently still holding onto gains. Why was it up versus
Speaker 3: the US dollar because the CPI print the consumer price
Speaker 3: in next coming in actually hotter than was anticipated. Yes,
Speaker 3: it's down from an excess of three percent, but two
Speaker 3: point three percent was more than the market wanted to
Speaker 3: see for anticipating some sort of Bank of England rate cut.
Speaker 5: So the pound is up on some macro data.
Speaker 3: But there's also the points that being driven home from
Speaker 3: a political perspective that we could see a general election
Speaker 3: held as soon as July fourth, currently being reported by
Speaker 3: sky News. We'll have more on that in a minute,
Speaker 3: but what we got on the.
Speaker 4: Tech Another top story on the Bloomberg terminon dot com
Speaker 4: is Apple. It plans to ask a court to throw
Speaker 4: out the DOJ's case against the iPhone maker, making a
Speaker 4: long shot bid to ward off what promises to be
Speaker 4: a lengthy legal battle, joining US Bloomberg Intelligence, Sandalist Santa Agrana.
Speaker 4: You know, this is a case followed closely, largely procedural
Speaker 4: update that Apple saying this is what we believe help
Speaker 4: us out.
Speaker 1: How do you price that anrag?
Speaker 11: Yeah. I think this is one of the more important things,
Speaker 11: and people don't talk about it because frankly speaking, you know,
Speaker 11: services revenue, as you know, is the one that's driving
Speaker 11: Apple's growth right now, and a large portion of that
Speaker 11: is the app store revenue. And if there are things
Speaker 11: that will be done to damage that and it's going
Speaker 11: to have an impact on Apple, so far we haven't
Speaker 11: seen it because right now it's only a little bit
Speaker 11: changes in the EU, but any changes in the US,
Speaker 11: you know, could could have a material impact on that number.
Speaker 11: So I think Apple will do whatever it can to
Speaker 11: protect its ecosystem, and as you said, it's going to
Speaker 11: be a lengthy legal battle.
Speaker 3: Yeah, we're not on how it seems as though it
Speaker 3: is rare for these sorts of things to be thrown
Speaker 3: out at the behest of certain companies. Em though we
Speaker 3: did see Meta indeed manage to persuade on that FDC
Speaker 3: focused previously. But ad more broadly, is Apple doing enough
Speaker 3: to change the tune when it comes to AI? For example,
Speaker 3: we've actually seen shares do particularly well post earnings.
Speaker 11: Yeah, I think, you know, I would give a little
Speaker 11: bit of that credit to Mark Government for breaking news
Speaker 11: on you know, their partnership with open ai or potential
Speaker 11: partnership with open Ai and the ongoing talks that they
Speaker 11: have and even Google, So you know, one of the
Speaker 11: things we I think it's it's pretty Most people will
Speaker 11: agree that Apple has not been at the forefront of
Speaker 11: any new GENI developments. So the question is, well, what
Speaker 11: are they going to do when they when they have
Speaker 11: to and when when the June tenth event comes in,
Speaker 11: if they are going to announce a partnership with open ai,
Speaker 11: with with Google that can help them to change their
Speaker 11: software make it a little bit better, and based on
Speaker 11: that we see a refresh cycle improved for the iPhone.
Speaker 11: I think it's going to be good for Apple, So
Speaker 11: I think I think it is. It is going in
Speaker 11: the right direction, but we have a long way to
Speaker 11: go before we can say that they have they have
Speaker 11: a good position in that market, An.
Speaker 3: Rag Rana, We always appreciate it coming from Boston glmeg Intelligence. Meanwhile,
Speaker 3: let's focus in on what companies are driving forward. AI
Speaker 3: Salesforce launching Einstein co Pilot for merchants and marketers to
Speaker 3: help companies basically personalized customer engagement across marketing commerce sales services. Well,
Speaker 3: thanks of course, Generator AI. Let's bring in Salesforce AI
Speaker 3: CEO Clara she who is traveling around post the VivaTech
Speaker 3: conference in Paris, and I'm really interested as to what
Speaker 3: you're setting forth a Clara, how are you trying to
Speaker 3: pit yourself against the competition of being able for your
Speaker 3: clients to use their own data in a more sophisticated manner.
Speaker 1: Thank you so much for having me.
Speaker 12: First of all, we are thrilled to be hosting our
Speaker 12: Salesforce Connections event this week in Chicago for commerce merchants
Speaker 12: and marketers and to be announcing just amazing innovation around
Speaker 12: Einstein Copilot as well as Einstein Personalization and now data
Speaker 12: cloud for commerce. I mean, if you think about it, Caroline,
Speaker 12: you know, for the last twenty five years, customers have
Speaker 12: been bringing their trusted data to salesforce and building their campaigns,
Speaker 12: their transaction data, all of their business logic and salesforce,
Speaker 12: and now they can unlock.
Speaker 8: That data through AI.
Speaker 12: And it's very different than going to chat GBT, going
Speaker 12: to another AI system that may not be secure, that
Speaker 12: may not have their trusted data, and getting results that
Speaker 12: may not make sense for their business, versus one that's
Speaker 12: completely grounded in their organization's data and processes.
Speaker 4: Clara, Hey, it's dead in San Francisco. I'm really interested
Speaker 4: in the co pilot for merchants. Right, we seem to
Speaker 4: be increasingly moving toward basically the AI agent where the
Speaker 4: human being or several human beings interact with this agent
Speaker 4: just in the normal course of their roles. How quickly
Speaker 4: do you see the adoption happening and where is it happening?
Speaker 12: Well, it's just amazing to see the response so far
Speaker 12: for Einstein Copilot in both sales and in customer service,
Speaker 12: and for merchants. And marketers, it's going to be equally powerful.
Speaker 12: What we're seeing is that AI is able to augment
Speaker 12: employees and you know, think about a commerce manager that
Speaker 12: has to set up a digital storefront or wants to
Speaker 12: launch a personalized commerce campaign. Now they're able to do
Speaker 12: so with the help of this powerful copilot that has
Speaker 12: all of their inventory data, that understands all of the
Speaker 12: best practices and is able to personalize to that specific
Speaker 12: customer their transaction history and their preferences.
Speaker 3: Clara, it's really interesting you brought up chat GPT is
Speaker 3: the potential of what someone else could be typing into
Speaker 3: because ultimately Einstein GBT correct me if I'm wrong is
Speaker 3: a mixture of public private AI models, and you actually
Speaker 3: have a partnership with open AI. So talk to us
Speaker 3: about the competitive or friendome situation you have with Microsoft
Speaker 3: and open AIS partnership.
Speaker 12: Well, we really believe in customer choice, and it's also
Speaker 12: very early in the LM in the large language model game,
Speaker 12: so it's too soon to call a winner. And so
Speaker 12: the way that we've built our Einstein one platform is
Speaker 12: it's an open architecture and so customers can choose their
Speaker 12: favorite LM, whether it's one of our own Salesforce homegrown
Speaker 12: domain specific llms like Flogen and Cogen, or it's from
Speaker 12: one of our trusted model partners including Google, Anthropic, Amazon,
Speaker 12: Microsoft Open Ai, and then customers can also bring their
Speaker 12: own model. So it's really really about adding value on top.
Speaker 12: It's our Einstein trust layer, providing data security, data privacy,
Speaker 12: zero retention prompts to ensure that none of the context
Speaker 12: that gets put into a prompt is ever stored or
Speaker 12: learned by a model, whether that's ours or a third
Speaker 12: party model. It's providing an audit, trail, citations, and really
Speaker 12: that trust that customers need as a price of admission
Speaker 12: for AI in the enterprise.
Speaker 4: Clara media reports suggest that the Informatica talks have broken
Speaker 4: down with Salesforce. Maybe Salesforce is back on the hunt.
Speaker 4: You know, from an M and A perspective, you lead
Speaker 4: the AI teams at Salesforce. How are you thinking about
Speaker 4: using acquisitions to build out your AI offering?
Speaker 12: Now I'm not able to comment on that, but what
Speaker 12: I can say is that we're seeing phenomenal explosive growth
Speaker 12: in our Salesforce data cloud and what that does is
Speaker 12: it allows customers to bring together all of their trapped
Speaker 12: siloed data from across the enterprise. You think about you know,
Speaker 12: for any business of even a small business, has multiple
Speaker 12: different systems, multiple databases, data warehouses, and data lakes. And
Speaker 12: now we're able to connect that data in a seamless manner.
Speaker 1: And if a.
Speaker 12: Customer is using a Snowflake or a Microsoft Fabric or
Speaker 12: an Amazon Google Big Query, they're able to bring all
Speaker 12: of that data, harmonize it, cleanse it, and activate that
Speaker 12: for use by all of their sales, service marketing and
Speaker 12: merchant teams.
Speaker 4: Salesforce AI CEO Clarocy. Great to have you back on
Speaker 4: the program. Thank you. Let's get back to the breaking
Speaker 4: news from the United Kingdom. The BBC is reporting that
Speaker 4: Prime Minister Rihi soun Act is currently informing his cabinet
Speaker 4: of his intention to hold a general election on July fourth,
Speaker 4: and that Parliament will be dissolved next week. Of course,
Speaker 4: when the parliament is dissolved, it's the official term we
Speaker 4: use for the end of a parliament, and legally a
Speaker 4: general election must follow. The pound in the currency markets
Speaker 4: relatively stable following all these headlines. In the bomb market's
Speaker 4: guilts also steady. The expectation you're looking at a live
Speaker 4: shot of number ten Downing Street. Many media outlets reporting
Speaker 4: that we will get a statement from Prime Minister Rishi
Speaker 4: Sunak of the Conservative Party at some point today. Stay
Speaker 4: with us, we will have all of the latest. This
Speaker 4: is Bloomberg Technology Scaled AI, as startup that helps top
Speaker 4: tech companies improve data used to build AI products, is
Speaker 4: raising one billion dollars in one of the largest financing
Speaker 4: deals of the year. The funding round now values the
Speaker 4: company nearly fourteen billion dollars. Joining us is Alexander Wang,
Speaker 4: Scales founder and CEO. And I look at the new investors,
Speaker 4: the venture arms of AMD, Intel, Cisco's in their Amazon.
Speaker 4: What does that tell me? That's very interesting, this sort
Speaker 4: of strategic backing you've got beyond just the size and
Speaker 4: scope of the round.
Speaker 1: First of all, thanks for having me.
Speaker 13: I think one of the key things of our role
Speaker 13: in the AI industry is that we really are an
Speaker 13: infrastructure provider. The three pillars of AI ultimately are data, compute,
Speaker 13: and algorithms.
Speaker 1: Folks like open Ai solve.
Speaker 13: The algorithmic piece, looks like in Nvidia solve the compute piece,
Speaker 13: and our role at scale is to solve the data pillar.
Speaker 1: For AI.
Speaker 13: Our data foundry today powers nearly every leading large iguage model,
Speaker 13: including those from Open Ei, Meta, Microsoft, and Video.
Speaker 1: And so ultimately, one of our goals with this.
Speaker 13: Financing ground was really to ensure that we can continue
Speaker 13: serving the entire AI eCos system. So you look at
Speaker 13: a lot of the strategic and corporate investors that we
Speaker 13: brought on board, it really was to sort of bring
Speaker 13: together the entire ecosystem and multiple layers of the stack.
Speaker 1: So this includes other folks.
Speaker 13: In the kind of infrastructure layer folks like Nvidia and
Speaker 13: the Intel, as well as folks in the model layer,
Speaker 13: folks like Amazon or Meta, and then lastly folks of
Speaker 13: the application layer, folks like Cisco or service Now. And
Speaker 13: so our goal ultimately was to ensure that we can
Speaker 13: continue serving the entirety of the.
Speaker 1: AI ecosystem as a level infrastructure.
Speaker 13: Provider by sort of like bringing together the entire cobord.
Speaker 5: What about Google or Microsoft?
Speaker 3: Are they interested is that for the later dates or
Speaker 3: can we only go with a certain number of each
Speaker 3: player on each system?
Speaker 13: You know, it's always it's always like hurting cats with
Speaker 13: these with these with these corporations. But we're you know,
Speaker 13: our goal is to continue serving the entire ecosystem. We
Speaker 13: want to ensure that artificial intelligence on the whole is
Speaker 13: able to is able to accomplish the incredible potential you know,
Speaker 13: our data engine. Our goal with our data engine is
Speaker 13: to generate all the frontier data needed to fuel us
Speaker 13: to AGI and potentially even beyond.
Speaker 1: You know, our view, one of the ways we think.
Speaker 13: About it is, what are all the problems in data
Speaker 13: then need you be solved to get us from GPD
Speaker 13: four to GPD ten, And how do we ensure that
Speaker 13: we have the needs of production to do all of that?
Speaker 3: And let's talk about the means of production, about the
Speaker 3: action of labeling such data, because I know that you've
Speaker 3: really been thinking a lot about AI safety, the development
Speaker 3: the biases, ensuring that that's something that's thought about within
Speaker 3: your business and the moods that you serve.
Speaker 5: But there was a lot of concern back.
Speaker 3: In twenty twenty three about who you employ to label
Speaker 3: data and a lot of that work being done in
Speaker 3: the so called global self. How you're paying them, at
Speaker 3: what rate you're paying them. How is that being solved
Speaker 3: now by technology?
Speaker 13: Alexander, Yeah, Ultimately, you know, we believe that the future
Speaker 13: of AI data rests on three principles data abundance, frontier data,
Speaker 13: and measurement and evaluation. In terms of abundance, I mean,
Speaker 13: I think this is one of the clearer areas. We
Speaker 13: need to ensure that we are able to build a
Speaker 13: data foundry that ushers.
Speaker 1: In an era of data abundance. You know, these models are.
Speaker 13: Becoming increasingly data hungry due to the scaling laws. Every
Speaker 13: successive generation models requires exponentially more data, and we need
Speaker 13: to ensure that we are able to build the systems
Speaker 13: and the means of production that allows to not resign
Speaker 13: ourselves to data scarcity. A lot of the key for
Speaker 13: us comes into the second bullet point, though, frontier data.
Speaker 13: As we develop progressively more and more powerful AI systems,
Speaker 13: we need to be building frontier data, which is always
Speaker 13: pushing the boundaries of AI capabilities towards you know, more
Speaker 13: advanced areas such as complex reasoning agents, multimodality, multi linguality,
Speaker 13: and more. This production of frontier data requires human experts
Speaker 13: all around the world, and so you know, our view
Speaker 13: is that humans and expertise are critical component of this
Speaker 13: production process.
Speaker 4: Alex Aram But August twenty nineteen, you were on a
Speaker 4: previous iteration of this show, you were twenty two years
Speaker 4: old and you've just done a one hundred million dollar
Speaker 4: Series C. Fast forward to today, you've just announced the
Speaker 4: European HQ in London, you've valued at fourteen billion dollars.
Speaker 5: What's that like?
Speaker 4: How do you feel?
Speaker 13: You know, I think ultimately the most gratifying piece for
Speaker 13: me and I think for the entire company has really
Speaker 13: been how far AI has come in that timeframe. You know,
Speaker 13: in twenty nineteen, it was the very primordial early days
Speaker 13: of what's now called generator of AI. You know, even
Speaker 13: on that program, we didn't talk at all about about
Speaker 13: the exciting things that OPENING or other companies were doing.
Speaker 1: We were talking about self driving cars.
Speaker 13: If you fast forward today, we've gone from GPT two
Speaker 13: to GPD four and beyond work four and four to
Speaker 13: zero and beyond.
Speaker 1: We have AI.
Speaker 13: Systems that are significantly more capable, and I think we
Speaker 13: see a path to AI really improving everyone's lives in
Speaker 13: a way that was more of a pectoring back in
Speaker 13: twenty nineteen. And so my hope is that, you know,
Speaker 13: five years later, if I'm back on the show, that
Speaker 13: you know, we can we're looking back on the technology
Speaker 13: and seeing even further development in art fial intelligence, even
Speaker 13: further application of the technology, even further impact from ultimately.
Speaker 1: What we view is the most exciting technology of our time.
Speaker 3: I have it sooner than five years time SCALEAI founder
Speaker 3: and CEO Alexander Wang, thank you for joining us on
Speaker 3: the latest funding news. Meanwhile, we've got more funding news
Speaker 3: for you. And also in the world of artificial intelligence,
Speaker 3: deep l announcing a three hundred million dollar investment today.
Speaker 3: There's a two billion dollar valuation for the company that
Speaker 3: provides AI language solutions and it's doing that too more
Speaker 3: than one.
Speaker 5: Hundred thousand customers.
Speaker 3: H CEO and founder Jarek Kutilowski joins us now and
Speaker 3: Eric tell us about DPL and what you're.
Speaker 5: Providing to your enterprise clients.
Speaker 3: Because there's been a lot of excitement about the translation
Speaker 3: capabilities of the latest chat GVT four.
Speaker 5: Oh how are you different?
Speaker 14: I think thank you for having me. I think it's
Speaker 14: amazing how translation actually is the first frontier at which
Speaker 14: AI has been excelling since since quite a few years.
Speaker 14: And DEEPEL has been found in twenty seventeen and we've
Speaker 14: been kind of researching on how this translation technology can
Speaker 14: be as reliable and accurate and on the point all
Speaker 14: of the time so that it suits the needs of
Speaker 14: the enterprises. It's really not about kind of translating this
Speaker 14: menu in in a restaurant where you're in a foreign country.
Speaker 14: It's really about enabling companies to just go and send
Speaker 14: the emails to their customers in the respective languages of
Speaker 14: those which those are speaking, and kind of really going
Speaker 14: global as quickly as possible as they can with as
Speaker 14: much efficiency as possible.
Speaker 3: And so you have been managing to scale your business clients,
Speaker 3: your government clients with this offering, and I'm interested as
Speaker 3: to what they're for the new round the money will
Speaker 3: be doing. How will you be beefing up? Is it
Speaker 3: talent that you need right now? Is it marketing and
Speaker 3: getting other companies to know your story?
Speaker 14: I think it's it's it's basically all of that. I mean,
Speaker 14: the company has been investing on all of those fronts.
Speaker 14: We are really a company that is investing very heavily
Speaker 14: on the research side. We're running our own models and
Speaker 14: has been have been doing so since since the inception
Speaker 14: of the company.
Speaker 1: But at the same time, the.
Speaker 14: Type of customers that we're working with all of those
Speaker 14: enterprises that actually need this kind of technology, they need
Speaker 14: to we need to work with them, We need to
Speaker 14: enable them to use this brand new AI uh and
Speaker 14: and help them and in doing so. And that's that's
Speaker 14: that's a very large part of where our investments go to.
Speaker 4: What are the challenges with building language AI. You know
Speaker 4: you're keen underscore it's not just sort of simple translation,
Speaker 4: but it must mean training based on multiple data sets
Speaker 4: and calling on multiple data sets and the inference side.
Speaker 4: Just explain the challenge.
Speaker 14: Yeah, it's it's it's first and foremost, it's all about
Speaker 14: the accuracy and the quality. I mean, you want to
Speaker 14: be sure and you want to be confident that whenever
Speaker 14: you're communicating, like the right point comes across. And it's
Speaker 14: and it's really not only about this accuracy itself, but
Speaker 14: it's also about the fluency of the of the language
Speaker 14: you want to convince. You want to make sure that
Speaker 14: you're being understood as a professional. And for that you
Speaker 14: don't only need models that are great at getting the
Speaker 14: facts right, but you also have to go beyond that
Speaker 14: and have all of that language fluency in that. And
Speaker 14: that is then that makes really of the research work
Speaker 14: that goes both on the data side that goes into
Speaker 14: the algorithms, but also into the feedback loop and making
Speaker 14: sure that that our human editors, our translators are during
Speaker 14: the quality of of whatever comes out of the of
Speaker 14: the I models.
Speaker 4: You're joining us from Cologne, Germany. We've just shown a
Speaker 4: graphic with all of the customers that you have, thousands
Speaker 4: and thousands of them.
Speaker 1: Where are you growing fastest?
Speaker 4: Are you making money?
Speaker 1: What does growth look like?
Speaker 2: Yeah, we are.
Speaker 14: We are a global company from the very beginning on,
Speaker 14: and I think that's that's that's pretty understandable given given
Speaker 14: the product it is.
Speaker 1: It is really truly one.
Speaker 14: Of the one of the very international products out there,
Speaker 14: and key markets for US are Germany, Japan, and the US,
Speaker 14: so it can't be more distributed than that. But the
Speaker 14: US is a is a pretty strong foothold for us
Speaker 14: right now. We've we've just opened an office a few
Speaker 14: months ago in Austin and and will be working more
Speaker 14: and more with WES companies that want to expand their
Speaker 14: footprint globally.
Speaker 4: Dep l C and founder yere At Katilovski. Great to
Speaker 4: have you on the program here on Bloomberg Technology. Do
Speaker 4: you have a place in the AIPC market.
Speaker 14: I'm back next year.
Speaker 6: There's exactly there are a bunch of bunch of the
Speaker 6: video GPUs and delpcs, del workstations. All of our GPUs
Speaker 6: have the same tensor cores that are running in h
Speaker 6: one hundreds in the cloud, and so every one of
Speaker 6: our GPUs use.
Speaker 14: AI to do its work.
Speaker 8: AI, of course is going to transform gaming in video.
Speaker 4: CEO Jensen Huang being saved by his mate Michael Dell
Speaker 4: and I guess, Caro, the question is move beyond data centers.
Speaker 4: When does a video getting the CPU game in PCs
Speaker 4: and go for Intel's market.
Speaker 5: That was just what I heard.
Speaker 3: Come back next year to hear ed and I know
Speaker 3: you will be back there next year. But now we
Speaker 3: brace ourselves on what the earnings are like after the
Speaker 3: bell today, Then can they eclipse what the market wants
Speaker 3: to see and more than two hundred percent increase in revenue?
Speaker 5: We wait, we watch.
Speaker 3: We also anticipate a statement coming from UK Prime Minister
Speaker 3: Rishi Sunak as soon as the next five minutes.
Speaker 5: Tune in. This is the Bloomberg technology