Speaker 1: From Marhard.
Speaker 2: We're Innovation, Money and Power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and.
Speaker 3: Ed Love Love.
Speaker 4: I'm Caroline Heine, Bloomberg's world headquarters in newlourmed Lovelow, also
Speaker 4: here in New York for the final time this week.
Speaker 3: And this is Bloomberg Technology.
Speaker 4: And coming up. And while we're talking the cyber attack
Speaker 4: of course, disrupting the US Treasury market, the world's largest
Speaker 4: bank falling victim to a ransomware hack.
Speaker 5: We have the story plus stability AI getting new backing
Speaker 5: from Intel. We talk about the cash infusion which comes
Speaker 5: at a critical time for the company and AI at large,
Speaker 5: with none other than Andrew Ung, founder of Google Brain
Speaker 5: and co founder of Course and.
Speaker 4: Call of Duty's Modern Warfare two It brought in one
Speaker 4: billion dollars in ten days. Modern Warfare three perform and
Speaker 4: how is a game about war helping real veterans in
Speaker 4: future employment. We talk to Activision Blizzard later in the hour.
Speaker 5: Now our top story ICBC, a China bank subject according
Speaker 5: to sources, to a hack that's a big one that
Speaker 5: we're watching. Why because it's mega You think about the
Speaker 5: assets that bank controls.
Speaker 3: Then it's going to have ramifications. You're right, it's mega.
Speaker 4: To put it into context, the world's biggest bank ICBC,
Speaker 4: and it's been here, as you say, by cyber attack,
Speaker 4: leaving the Chinese bank unable to clear US Treasury trades,
Speaker 4: forcing employees get this to send settlement details through a
Speaker 4: courier carrying a US basticw mertion Hali Bassett going back
Speaker 4: to basics on technology for us for a moment, I
Speaker 4: mean extreme events, mean extreme moments with a courier, But
Speaker 4: ultimately it really reminds us how all important cybersecurity is.
Speaker 2: Right now it is.
Speaker 6: And remember this is not the first significant cyber attack
Speaker 6: we've really seen on some more critical infrastructure in the
Speaker 6: financial industry. You've seen the same group here really target
Speaker 6: or offshoots of this group target a British fintech firm
Speaker 6: earlier this year when it came to the derivatives market.
Speaker 6: But the reason this is such a big deal not
Speaker 6: just is it the world's largest bank by assets, it's
Speaker 6: also the most large liquid safe market in the world
Speaker 6: that was disrupted for a moment yesterday as we saw
Speaker 6: this attack happen.
Speaker 5: Why you were hanging out on social media this morning
Speaker 5: and going back reading about ICBC, going back to twenty
Speaker 5: seventeen and sharing articles put that research into context with
Speaker 5: the news overnight.
Speaker 6: Yeah, the reason that this is such a big deal
Speaker 6: is remembered that the market for treasuries has really brought
Speaker 6: in to include banks like ICBC, a massive Chinese bank
Speaker 6: in the US treasury market. So some of this is
Speaker 6: a treasury market structure issue. This is relevant to your
Speaker 6: audience at and the technology world because there's a large
Speaker 6: debate on how treasury should be cleared. ICBC has become
Speaker 6: a big clearing counterparty as well as large in the
Speaker 6: repo lending market. These are repurchase agreements that really fuel
Speaker 6: the heart of the financial system and leverage in the
Speaker 6: treasury markets. But there's a big debate now on whether
Speaker 6: treasuries should be centrally cleared. This would be through a
Speaker 6: unit of the dtcc A lot of fintech players are
Speaker 6: very closely associated with the DCCC because they care so
Speaker 6: much about the movement of different assets across the United States,
Speaker 6: let alone the world across different types of assets. But
Speaker 6: if they are centrally cleared, then these cyber problems have
Speaker 6: a more concentration risk. Don't they, And so there's a
Speaker 6: big question about what else is vulnerable besides.
Speaker 4: ICBC here and the people behind this ransomware finding it
Speaker 4: like a business extraordinary set of stories being put out
Speaker 4: by bloom bag nus to any Basset, we thank you
Speaker 4: for the inside track of really what it meant for
Speaker 4: a key Chinese lender. And well, let's talk about AI
Speaker 4: in particular when it comes in the context of China.
Speaker 4: A social intelligence that course a big theme in this
Speaker 4: year's New Economy form. It's been held in sing and Paul,
Speaker 4: but BLOOMGX spook exclusively with Cinnovation Ventures chairman and CEO
Speaker 4: Kaifu li Ai pioneer as he's known, is discuss the
Speaker 4: opportunities that opal intelligence can create and the need for regulations.
Speaker 4: Just take a listen.
Speaker 7: We wanted to be a global company. That's why we
Speaker 7: open source our best model to date, and that's what
Speaker 7: we announced this week. It's a thirty four B model
Speaker 7: that is the highest performance open source model for a
Speaker 7: large language model, exceeding methas Lama too by a significant margin.
Speaker 7: We believe open source will bring the world together. We
Speaker 7: think research is always about building on the shoulders of
Speaker 7: standing on the shoulders of giants, and we want to
Speaker 7: contribute from which we took.
Speaker 8: Obviously, there's a lot of talk about this whole I
Speaker 8: guess race between AI, between US and China here, How
Speaker 8: do you see this all playing out overall? And what
Speaker 8: really is at stake right now?
Speaker 7: I think the likelihood, given where things are, which is regrettable,
Speaker 7: is we have two parallel universes. American companies will supply
Speaker 7: their products and technologies to the US and other countries
Speaker 7: that want to use American products, and Chinese companies will
Speaker 7: build Chinese products for China and countries that will use
Speaker 7: Chinese products.
Speaker 3: So the reality is the.
Speaker 7: American companies and Chinese companies are probably not going to
Speaker 7: compete all that much in the same marketplace, but they'll.
Speaker 9: Probably have to compete on chip makers. Right, So the
Speaker 9: US Administration has said that some of the higher tech
Speaker 9: chips cannot be sold to Chinese companies. What does it
Speaker 9: mean for your company?
Speaker 10: Right?
Speaker 7: We saw this coming, so we actually stockpiled a lot
Speaker 7: of Nvidia chips. So we're in good shape for about
Speaker 7: a year and a half, and I think the jury
Speaker 7: is out whether in a year and a half China
Speaker 7: can make equivalently or nearly as good chips.
Speaker 8: Time will tell you're not just targeting China but also
Speaker 8: global markets. And just want to how do you view
Speaker 8: the whole regulatory landscape right now when it comes to AI.
Speaker 7: I think there clearly needs to be regulation because AI
Speaker 7: can be used in ways that are harmful. I also
Speaker 7: think different countries will have somewhat different regulations, but hopefully
Speaker 7: there's enough commonality in them, so regulation is necessary. But
Speaker 7: also I think we shouldn't expect regulation to alone to
Speaker 7: be enough because a lot of these issues hallucination, misinformation,
Speaker 7: harm can and should be measured by technology, and we
Speaker 7: should let the technologies find a way to contain the technology,
Speaker 7: but not completely rely on them either. So it's really
Speaker 7: technology to provide the guardwail rail and the detection and
Speaker 7: removal of harmful and illegal content, but working side by
Speaker 7: side with regulations.
Speaker 8: At what point, I mean, do you think that it
Speaker 8: could actually disrupt innovation in some way? Are you concerned
Speaker 8: that the regulations could actually hurt innovation?
Speaker 7: I think excessive regulation will hurt innovation, and I think
Speaker 7: we as a technology community are willing to take some
Speaker 7: hits and be slowed down somewhat for the good of humanity,
Speaker 7: but not so much so that will completely stifle innovation.
Speaker 9: How difficult is it? And this is one of the
Speaker 9: conversations that we try and have with policymakers. First of all,
Speaker 9: policymakers probably don't regulators don't understand how quickly or how
Speaker 9: slowly this comes compared to someone like you and your expertise.
Speaker 9: So what's the biggest mistake that they could do now?
Speaker 7: Well, I think a moratorium would be a huge mistake.
Speaker 7: It's not enforceable and it's not going to be effective.
Speaker 7: You have to let technology move forward. I think things
Speaker 7: that they should do are to promote letting technologists, fixing
Speaker 7: hallucination and other problems. And I think they should use
Speaker 7: existing laws to punish those who misbehave for example, for
Speaker 7: spreading misinformation. We have laws in every country on that already,
Speaker 7: just use them.
Speaker 5: Exclusive interview with Sinnovation Ventures chairman and CEO Kai Fu
Speaker 5: Lee at the Bloomberg New Economy Forum in Singapore, and
Speaker 5: he referenced in video Caroline. It's the subject of the
Speaker 5: Techwatch column today, talking about how its earnings ratio is
Speaker 5: less than the estimated growth rate and talking about valuation,
Speaker 5: which is an uncommon situation me in But I don't
Speaker 5: know if you saw the news twenty four hours ago
Speaker 5: that they're basically the stock rose because it's working on
Speaker 5: three new AI chips specifically for China, and there Kyfu
Speaker 5: Lee was basically saying, in Video is the only game
Speaker 5: in town right now. Remains to be seen if China
Speaker 5: can make its own chick and.
Speaker 4: The fact they need stockpiled a load ahead of some
Speaker 4: of these restrictions. But going back to whether in video
Speaker 4: is expensive or not, what is it training at thirty
Speaker 4: five time sales, which by is like the most expensive
Speaker 4: on the s and P fie hundred. But many analysts
Speaker 4: are saying this is actually relatively too and that's a
Speaker 4: big right. Meanwhile, look, we just want to talk about
Speaker 4: another publicly traded company, Meta. The company is close, we understand,
Speaker 4: reaching a deal that will bring his mixed reality headset
Speaker 4: to China through a partnership with Tencent. Now calling to
Speaker 4: sources good manufacturer version of a headset using matters hardware,
Speaker 4: specifications and software with Metro and Tencent didn't respond to
Speaker 4: request for common Interesting the Metro actually reaccessing the Chinese
Speaker 4: economy from New York. There's a boom meg technology.
Speaker 5: Stability AI is raising new financing led by chipmaker Intel
Speaker 5: Stability raising just under fifty million dollars in the form
Speaker 5: of a convertible. Note that, according to sources, the cash
Speaker 5: infusion coming at a pretty critical time for the company,
Speaker 5: which has recently shed more than half a dozen senior employees.
Speaker 3: A big story in the world of AI.
Speaker 5: Let's stick with the world of AI and bringing Andrew
Speaker 5: um who founded Google Brain and deep Learning to AI
Speaker 5: and is currently chairman and co founder of course Serah
Speaker 5: and of course an adjunct professor at Stanford in the
Speaker 5: field of AI. And welcome to the program, Andrew, and
Speaker 5: thank you for your time. I want to start with
Speaker 5: the reason that you're so talked about right now in
Speaker 5: the news and the media, online on social media. And
Speaker 5: it's a view that you hold that big tech is
Speaker 5: talking up the threat, the existential threat of AI for
Speaker 5: a particular reason because you outline your thesis to us.
Speaker 11: So there's been a lot of fear about AI creating
Speaker 11: and the existential threat to humanity. But I just don't
Speaker 11: get it. I don't see any plausible path by which
Speaker 11: AI will make humanity go extinct. But the notion that
Speaker 11: they could just treace a lot of fear and unfortunately
Speaker 11: just creates cover for lobbyists as well as some regulators
Speaker 11: to pass laws that I'm concerned will be very cycling
Speaker 11: on innovation and open source, and so I think of
Speaker 11: this in the interest of some of the big tech
Speaker 11: companies to let these regulations be passed to shut up
Speaker 11: open source that some large companies would very rather not
Speaker 11: compete with.
Speaker 4: We've just had the AI summon in the UK, where
Speaker 4: many would say perhaps it upt some of the fear
Speaker 4: mongering our regulations as they're being formed the right ones.
Speaker 11: I'm very concerned about the regulations being formed both in
Speaker 11: the United States as well as in the UK and Europe.
Speaker 11: One distinction, i feel like there's more of the AI
Speaker 11: existential risk fear in Europe than in the United States.
Speaker 11: But I'm concerned about regulations on both sides. So the
Speaker 11: White House had released and executive order just a couple
Speaker 11: of weeks ago in which it's starting to put in
Speaker 11: place reporting requirements and maybe other requirements about models that
Speaker 11: are very powerful, and I'm very concerned if we'll end
Speaker 11: with one a path more open source software or at
Speaker 11: least past regulations that make it so difficult for people
Speaker 11: to write open source software, free software for anyone to
Speaker 11: build on, which has been an amazing contribution to the world,
Speaker 11: and it's a key for how innovators and startups compete
Speaker 11: and build.
Speaker 5: There was a lot of interest from our audience about
Speaker 5: you coming on, and I think probably the most common
Speaker 5: question was for you to ex how you see the
Speaker 5: intersection of deep learning, machine learning, neural networks impacting jobs.
Speaker 5: You know, this debate of displacement versus being an assistant
Speaker 5: based on all of the research and development currently happening.
Speaker 11: So it turns out that AI doesn't automate jobs. I
Speaker 11: know that the whole discussion has been worre air aultimate jobs,
Speaker 11: but I think a more useful analysis is not to
Speaker 11: think of AIR as automating jobs, for it's air automating tasks.
Speaker 11: So what my teams do is we actually take jobs,
Speaker 11: break them down into tasks. For example, are radiologists REUSEICX,
Speaker 11: raised communicates with patients, galicipation history is meant to s
Speaker 11: more junior radiologists, and on and on and on, and
Speaker 11: then to take all those tasks and figure out where
Speaker 11: are the AI opportunities. One of my friends every Brunos
Speaker 11: and an others had pioneer this technique, and it turns
Speaker 11: out that I think on this spot, AI does automate
Speaker 11: a tiny number of jobs in whole, but the majority
Speaker 11: of the time you find that for someone's job, maybe
Speaker 11: I can make them, you know, twenty percent more productive
Speaker 11: of and more productive, which means that they are still needed.
Speaker 11: But with AI they can be more productive. I don't
Speaker 11: mean to minimize the suffering of this much smaller number
Speaker 11: of people whose jobs will go away. But it turns
Speaker 11: out also that if you look at most waves of innovation,
Speaker 11: companies end up pursuing growth more than cost savings because
Speaker 11: you can only save so much money's cost savings is nice,
Speaker 11: but the growth, the revenue growth has no limit, and
Speaker 11: so most companies end up. I think we'll end up
Speaker 11: doing more.
Speaker 4: Of that, and companies need to reskill. And that's where
Speaker 4: Coursera comes in. How much demand have you seen? How
Speaker 4: much ability to satiate that demand have you been able
Speaker 4: to give?
Speaker 11: So I think coursertvet privilege to serve many enterprises wanting
Speaker 11: to reskill, their import their teams. In fact, just about
Speaker 11: a week ago we launched a new course, genitive AI
Speaker 11: for everyone. I think with this fear and uncertainty as
Speaker 11: well as massive upside, we wanted to teach something online
Speaker 11: to help everyone learn to use genetive AI in your
Speaker 11: own day to day life, for personal things or for work,
Speaker 11: as well as figure out how does impact your job
Speaker 11: or your business, So genetally for everyone. Launching Coosera just
Speaker 11: over a week ago, it was actually the fastest rain
Speaker 11: calls on the Polsera this year, with I think forty
Speaker 11: three thousand learners signed out in the first seven days.
Speaker 2: So I think there's a lot.
Speaker 11: Of interest to learn about GENITIVII and to understand how
Speaker 11: to use it yourself, how this may affect your job,
Speaker 11: and how does may affect your business and your industry.
Speaker 5: Vertical Andrew, this week we've been digesting Rock and the
Speaker 5: work that you Musk's done in generative AI.
Speaker 3: What is your assessment?
Speaker 11: You know, I saw it dropped from about not played
Speaker 11: with it myself yet. I think this is a sign
Speaker 11: of the rapid explosion of AI technology. Just last week,
Speaker 11: open Eye had a developer conference. That's exciting even I
Speaker 11: must release drop. I think you just had a typeoly
Speaker 11: on that released another open source model. So this explosion
Speaker 11: of technology tools and what would happen is with better tools,
Speaker 11: it opens up opportunities for businesses and startups to build
Speaker 11: a lot more applications that just were not possible before.
Speaker 11: And so I think that we're better tools the application layer.
Speaker 11: You know, not the media tends to talk about tools
Speaker 11: because you tech out here. That's exciting thing people want
Speaker 11: to hear from the two in companies. But two in
Speaker 11: companies will be successful only if the applications built on
Speaker 11: top of them are even more successful and generally even
Speaker 11: more revenue so they can afford to pay the.
Speaker 2: Two in companies.
Speaker 11: So while I think companies are in the year are
Speaker 11: brilliant and AMD and Intel for them to succeed, someone
Speaker 11: has made even more money to keep paying for these gps,
Speaker 11: and so I'm excited the applications.
Speaker 4: We optimism of course, Sarah chairman, co founder and as
Speaker 4: well as a wealth of other titles, professor, We thank
Speaker 4: you for your time. The Revenue Intelligence platform Gone and
Speaker 4: it's launching a new AI powered forecasting tool to help
Speaker 4: the CFOs CROs out there, basically four cost revenue bringing
Speaker 4: the understanding game from get this more than three hundred
Speaker 4: buying signals across more than three billion customer interactions as
Speaker 4: you captured on Comm's platform. I'm at Bendorf, you to say,
Speaker 4: CEO co Foundra Gong joins us. Now, So how much
Speaker 4: more efficient at predicting does this make people?
Speaker 1: Our testing have shown that it's twenty one percent on
Speaker 1: average more effective and more accurate than traditional methods. Traditionally,
Speaker 1: companies has been aligned on statistical models in some internal systems,
Speaker 1: using the voice of the customers and customer sentiment. With AI,
Speaker 1: it creates much better results.
Speaker 5: I mean, who are we comparing this with? Is this
Speaker 5: like sort of lead generation chasing al CRM and salesforce
Speaker 5: or is this kind of more like data bricks and
Speaker 5: the Data Lake product that they're doing out there with prediction?
Speaker 3: Who are you trying to be here? It's neither.
Speaker 1: Traditional companies have been using spreadsheets to understand how much
Speaker 1: they're going to sell this quarter or next quarter, using
Speaker 1: a variety of sources anywhere from internal systems, weather forecast,
Speaker 1: traditional sales records, and mostly sentiment of the sales departments
Speaker 1: the best judgments, which isn't very good, especially like in
Speaker 1: these challenging times with the macro and geopolitical situation. What
Speaker 1: GONG does. It taps into conversations of companies with their
Speaker 1: customers and it listens to what customers are saying, are
Speaker 1: they likely to buy, what's their sentiment, what are the
Speaker 1: budgets that they have, and turns all this into insights
Speaker 1: that are immediately fed into predictions, so companies can understand
Speaker 1: their changes to the forecast in near real time.
Speaker 3: What's your mote hair?
Speaker 4: You can obviously integrate salesforce data within GONG for example.
Speaker 4: How do you ensure that some of these big pairs
Speaker 4: don't unable to replicate what you've just built?
Speaker 1: Well, everybody can can try to replicate anything, but we're
Speaker 1: sitting on over like three billion customer interaction. We've been
Speaker 1: training the models for years specifically for that particular case,
Speaker 1: and it's not something that is easy to replicate.
Speaker 5: So, I mean, the aim is to improve the accuracy
Speaker 5: of forecasting.
Speaker 3: How does it work? How does the how does AI
Speaker 3: help you do that?
Speaker 12: Well?
Speaker 1: You need to understand scan through vast amounts of customer information.
Speaker 1: For every customer that the company has, what are they
Speaker 1: saying or whether they're not asking If they're not asking
Speaker 1: about pricing, maybe that's a negative signal. If they're talking
Speaker 1: about like a frozen budget. That's a negative signal. All
Speaker 1: of that is understood by the AI to create a
Speaker 1: model that actually predicts what the projection is going to be.
Speaker 1: So you look at customer by customer bottom up and
Speaker 1: understand how likely they are to buy, how much you're
Speaker 1: likely to spend, and then you combine all of that
Speaker 1: into prediction. The importance is that companies can now use
Speaker 1: that either to upgrade, update their forecast, to plan their
Speaker 1: hiring and their spend Accordingly.
Speaker 4: You mentioned geopolitics making it harder to forecast. Now we
Speaker 4: only have a minute left, but I just want to
Speaker 4: ask you, how are your workforce currently in Israel? How
Speaker 4: is the company able to ensure protection of this time?
Speaker 1: Well, overall, the impact on the business has been minimal.
Speaker 1: We have about ten percent of people being drafted. But
Speaker 1: everybody's working extra hard and mostly it's like very difficult
Speaker 1: for people. Everybody is still traumatized by the atrocity of
Speaker 1: October seventh, and there are still over two hundred hostages
Speaker 1: with babies. So these are difficult times, but the spirit
Speaker 1: is super high. The amount of volunteering and citizen activity
Speaker 1: is super high, and.
Speaker 3: We thank you for your time as well.
Speaker 5: I'm at Bendoff CEO and co founder have gone.
Speaker 4: Thank you, Welcome back to Bluemo Technology. I'm Caroline had
Speaker 4: and Neil.
Speaker 3: And Imed Ludlow in San Francisco. There are more. Oh
Speaker 3: my goodness, have fallen for it again? You got me.
Speaker 5: I'm here in New York City. Here are some technology
Speaker 5: stories moving in the markets. Let's start with Trade Desk,
Speaker 5: a two day chart for a visual representation of what's
Speaker 5: a big story. Down eighteen percent in the session, on
Speaker 5: track for its biggest drop since May of twenty twenty two.
Speaker 5: This is an ad technology platform. It gave a week
Speaker 5: forecast for the current period. It also hit the names
Speaker 5: like Meta Snap that have such AD dependent businesses.
Speaker 3: But it's a big move.
Speaker 5: It's got us thinking about the health of the advertising
Speaker 5: business overall. A big theme for the show's day is
Speaker 5: also going to be Alphabet, the parent company of Google.
Speaker 5: We know that some of the pitch I is going
Speaker 5: to testify next week. That's more around the app store story,
Speaker 5: but in the European Union this carries about to tell
Speaker 5: us there is also a lot of regulatory scrutiny as well,
Speaker 5: and thinking what does Google do? Next to kind of
Speaker 5: revamp its business in that market. Here I am in
Speaker 5: New York City, and.
Speaker 4: Let's talk about the EU for a moment, because look,
Speaker 4: Google has been pressured by the European Union regulators. It's
Speaker 4: made an effort to beef up the quality of its
Speaker 4: search engine.
Speaker 3: At least that's the word.
Speaker 4: According to the internal documents by the US Justice Department,
Speaker 4: DJ claims Google's failure to willingly make improvements that it
Speaker 4: proves it's illegally maintaining and monopoly. This comes them in
Speaker 4: news at Alphabet CEO, so which I will testify next
Speaker 4: week in a separate anti trust fight with Epic Gains. Boy,
Speaker 4: that's what going on. So Fordan can help us break
Speaker 4: it down. So what are we on the ninth week
Speaker 4: now in this particular set of investigations coming from the DOA.
Speaker 10: Yes, that's correct. This is spending the ninth week in
Speaker 10: the Google Search trial in Washington, D C. And that
Speaker 10: it's expected to wrap up next week, probably Wednesday or
Speaker 10: person next week with the final testimony. But we're not
Speaker 10: expecting to get a rolling in the space until early
Speaker 10: in the new year. The judges put off clausings until January,
Speaker 10: sometime around the new year, and so it's still going
Speaker 10: to take a long time to see what profile concunction
Speaker 10: of this trial is going to be.
Speaker 5: This has been a year where CEO is taking the standard.
Speaker 5: A trial becomes big news. Just tee up next week
Speaker 5: for us And why we care that Cunderpitchure is going
Speaker 5: to be speaking in that particular trial.
Speaker 10: Yes, So on the other coast we have the trial
Speaker 10: and a trust trial of between Epic and Google Play.
Speaker 10: And so the pitch I is going to be understand
Speaker 10: on Tuesday. He's going to be asked about the practices
Speaker 10: of the app store, and Epic is alleging the Google's
Speaker 10: practices in terms of distribution, in terms of pricing, in
Speaker 10: terms of fees are in a competitive.
Speaker 4: And yet as ed Is pointed out, despite all of
Speaker 4: this ferocious investigation and eyes from regulators, the Shares managed
Speaker 4: to weather it. Sarah, from investors' perspective, does this matter?
Speaker 4: Does it carry weight?
Speaker 10: Well, I mean, obviously this is a giant company with
Speaker 10: a lot of business around the woman. But it's also
Speaker 10: it takes a very long time for these semi trust
Speaker 10: cases to point out. And as I said, we will
Speaker 10: get a rolling until next year, and it will be
Speaker 10: sometime after that to find out if the judge finds
Speaker 10: covers firingly on a trust laws, the whole process to
Speaker 10: even final remedy, we'll go to another trial which and
Speaker 10: also could take multipubles.
Speaker 2: So it seems very.
Speaker 10: Far off at this moment from the point of view
Speaker 10: of the first on the market.
Speaker 5: All right, Bloomber, Sarah Ford, and thank you so much.
Speaker 5: We're going to stick with this story, but get more
Speaker 5: insight from Sarah O. Lamb, who's a senior fellow at
Speaker 5: the Technology Policy Institute, Sarah Gray, to have you back
Speaker 5: on the show. Let's ask this to start. We've outlined
Speaker 5: the situation in Europe. We outlined the situation on the
Speaker 5: West Coast where I am currently not I'm here in
Speaker 5: New York City. These processes running in parallel as a
Speaker 5: researcher compounds. Do you think they will take notice of
Speaker 5: each other in terms of how it can impact Google?
Speaker 13: Well, in terms of judge a meet Meta in the
Speaker 13: DC District Court, He's probably focused on his trial, But
Speaker 13: in terms of just the questions around competition and how
Speaker 13: dynamic the different markets are, I think people will be
Speaker 13: watching both both trials. What's interesting is this type of
Speaker 13: anti trust case. It reminds of prior cases like Microsoft
Speaker 13: and AT and T at least in the DC District
Speaker 13: of Columbia courthouse. So whatever comes out of this decision
Speaker 13: will will be watched by a lot of people.
Speaker 4: And some of the little bits of intricacies of data
Speaker 4: of points of fact have been fascinating, Sarah. But overall
Speaker 4: what seems to be so hard to prove is it's
Speaker 4: kind of the counterfactual, right, what it would have looked
Speaker 4: like if well they hadn't been acting in this way,
Speaker 4: and if ever it would ever have been deemed not
Speaker 4: monopolistic or not. Can you can you just startarticularly how
Speaker 4: difficult it is to understand whether Google has been playing
Speaker 4: is a key competitor here or ultimately been monopolistic in
Speaker 4: its actions.
Speaker 13: That's exactly right. I think the counterfactual is the question.
Speaker 13: So you don't know what could have been and businesses
Speaker 13: make decisions product decisions all the time. So just last
Speaker 13: week in the case, they were looking at the EU
Speaker 13: choice screen, and so in the EU they required another
Speaker 13: page before the default browser, and so now users in
Speaker 13: Europe have to pick between a whole page of different
Speaker 13: browsers that kind of product decision. You know, it's not frictionless.
Speaker 13: It makes it harder for users to get to a browser,
Speaker 13: and so you always have to ask, well, the businesses
Speaker 13: make decisions to streamline the flow of their products, and
Speaker 13: so what would have been is a.
Speaker 5: Great question on the West Coast in the Eppic Games fight,
Speaker 5: is there any significance that Cinder pitch Eye, the CEO
Speaker 5: kind of spearhead of the company, is testifying.
Speaker 2: Yes.
Speaker 13: So it's interesting that you know they're calling him in
Speaker 13: as a witness for that case as well. What's fascinating
Speaker 13: is just seeing how these cases are pulling back the
Speaker 13: curtain on business decisions. There's so many pieces of information
Speaker 13: that the Google has to decide from to make their
Speaker 13: product competitive, and just looking at the different slide decks
Speaker 13: and the business data is really fascinating. You know, anyone,
Speaker 13: not anyone can be making those decisions. And Google they
Speaker 13: have people inside who are looking at all the different
Speaker 13: options and picking what serves their product.
Speaker 4: And not many can be paying the billions to other
Speaker 4: companies to ensure that they remain in a specific spot
Speaker 4: on a front screen. It's the whole timing of it
Speaker 4: all is fascinating. With Ai as well. Sarah Lamb just
Speaker 4: brilliant to have you on the show as ever, senior
Speaker 4: fellow at Technology Policy Institute. Now coming up, we're going
Speaker 4: to be taking a moment to reflect on Veterans Day, particularly,
Speaker 4: We're going to be doing that with two key people,
Speaker 4: Go Daddy founder Vietnam veteran himself, Bob Parsons, and also
Speaker 4: call a duty manager Johanna Fairies. You understand why next
Speaker 4: is the Bloomberg Technology. On this Veterans Day, we take
Speaker 4: a moment to remember and honor members of the military,
Speaker 4: which both in Nazak and the New York Stock Exchange
Speaker 4: observed with two minute moments of silence earlier today. On
Speaker 4: this day, we want to bring in Go Daddy founder
Speaker 4: Bob Parsons, he himself a US Marine Corps Vietnam veteran,
Speaker 4: a recipient of the Purple Heart, Medal, Combat Action Ribbon
Speaker 4: and Vietnamese Cross of Gallantry. And Bob, we know you
Speaker 4: in the world of technology. We know you for Go
Speaker 4: Daddy for of course we're posting in made you a
Speaker 4: billionaire with that money, you've been giving back to something
Speaker 4: that we should know you more for, perhaps, which is
Speaker 4: of course your service how are you giving money? What
Speaker 4: sort of amounts are you giving as well?
Speaker 12: Well, you know, we give back money we give. You know,
Speaker 12: our goal is to donate a million bucks every other
Speaker 12: week and we do that. We try to support veterans
Speaker 12: organizations and we try to support a lot of organizations
Speaker 12: where they're having difficulty raising funds and they are well,
Speaker 12: I mean, there would be just us if we support them.
Speaker 12: So you know, you look for an organization like that,
Speaker 12: you'll find us.
Speaker 4: Those that are LGBTQ within service, those that are looking
Speaker 4: towards psychedelics for help, those of of course, you think
Speaker 4: MPF is one particular company, Team Rubercon another one you support.
Speaker 4: I'm interested in. You're trying to tackle sort of loneliness
Speaker 4: here as well. What is it that technology can't solve
Speaker 4: for veterans?
Speaker 3: Bob Oh.
Speaker 12: You know, technology is never gonna you know, I don't
Speaker 12: think it's ever going to touch PTSD, or it won't
Speaker 12: be in our lifetimes. That's that's for sure, because there's
Speaker 12: so many things that go with is. First is the
Speaker 12: loneliness that comes with it, and it's brutal, and it's
Speaker 12: a lot of the loneliness is self imposed because you know,
Speaker 12: with PTSD, you never feel like you belong no matter
Speaker 12: who or where you're with, or that you even want
Speaker 12: to belong. And that is that that is one of
Speaker 12: the worst things. And then you know taboo. It comes
Speaker 12: with a flash tamper sometimes depression up to severe depression,
Speaker 12: that sort of thing.
Speaker 5: Bob, you found a Go Daddy in the late nineties,
Speaker 5: you sold Parsons to into it. You have this kind
Speaker 5: of deep relationship with tech. How does that expand out
Speaker 5: to the armed forces? Do you employ a lot of veterans?
Speaker 5: You know, what relationship does Go Daddy have, for example,
Speaker 5: with the Armed Services?
Speaker 12: Well, I'm no longer affiliated with GoDaddy, haven't been since
Speaker 12: twenty nineteen, so you know, I don't know what they're
Speaker 12: doing now, but I can tell you and my companies,
Speaker 12: and I have thirteen of them now, we employ veterans
Speaker 12: as much as we can. Matter of fact, my assistant
Speaker 12: Franciscio Sanchez, she's been with me, has gone on twenty
Speaker 12: two years, and she was a court born a Marine
Speaker 12: Corps when I hired her.
Speaker 5: Go Daddy founder Bob Parsons on this Veterans, they really
Speaker 5: thank you for your time here on Bloomberg Technology. Now
Speaker 5: I actually want to keep with Veterans Day and talk
Speaker 5: to Joanna Ferries, Senior vice president, general manager of Call
Speaker 5: of Duty over at Activision Blizzard. It is a big
Speaker 5: day because Modern Warfare three is now live worldwide. But
Speaker 5: you also have in game packs, specifically through the Call
Speaker 5: of Duty Endowment, Joanna, that aim to take proceeds from
Speaker 5: the sales of those packs and then help put veterans
Speaker 5: into jobs. Just explain the process to us.
Speaker 2: Yeah, that's exactly right.
Speaker 14: The Warrior Pack goes on sale today and it's part
Speaker 14: of our Call of Duty Endowment commitment, which we've been
Speaker 14: doing for many, many years. It's near and near to
Speaker 14: our hearts and all the work and service obviously that
Speaker 14: military servicemen and women have been doing to protect our
Speaker 14: freedoms and allow us to make great video games. It's
Speaker 14: been an incredible partnership and extension of everything that Call
Speaker 14: of Duty stands for. The Warrior Pack is a great
Speaker 14: way for our community to also dive in and show
Speaker 14: support and help veterans get quality employment and opportunities after
Speaker 14: their military service.
Speaker 5: Joanna, give us some sense of the data about how
Speaker 5: Modern Warfare three is doing. You know, you guys, is
Speaker 5: like to flex that the last title made a billion
Speaker 5: dollars in about a week or ten days. Are you
Speaker 5: on track for that as well?
Speaker 14: Well, it's too early to call any numbers for sure.
Speaker 14: Today is launch day, but it's such a special moment
Speaker 14: for Modern Warfare three. It's been awesome. I mean, even
Speaker 14: seeing so many millions of players already pouring in and
Speaker 14: saying it's some of the best Call of Duty they've
Speaker 14: either ever seen or seen in years is exactly what
Speaker 14: puts the cherry on.
Speaker 2: Top of a year's long effort.
Speaker 14: I think the other piece to your point about last year,
Speaker 14: we all know how record breaking Modern Warfare two was.
Speaker 14: We've been years at work listening to player feedback saying
Speaker 14: that they wanted to spend more time in the series,
Speaker 14: and so this was a conversation we've been having for many,
Speaker 14: many years about can we deliver a blockbuster premium title
Speaker 14: that's back to back in terms of sequel and narrative,
Speaker 14: and also bring iconic multiplayer offerings net new offerings for
Speaker 14: Zombies players. So in many ways, Modern Warfare three is
Speaker 14: this amazing sort of nostalgic meets new innovation gameplay party
Speaker 14: for all things Call of Duty. It's been very intergenerational
Speaker 14: in that way. It's been a special moment for all
Speaker 14: of us.
Speaker 3: And it came very quickly.
Speaker 4: What was the pressure put on self put on paps
Speaker 4: to get it out so swiftly after the second.
Speaker 14: It was really no different than you know, we're celebrating
Speaker 14: our twentieth anniversary.
Speaker 2: So when you think about it, in many.
Speaker 14: Ways, some of the secret ingredient to Call of Duty's
Speaker 14: powerhouse blockbuster chops of bringing premium releases year after year
Speaker 14: has been part of how we think about development creative narrative.
Speaker 14: The big difference on this one was much more so,
Speaker 14: how do we combine what is arguably one of the
Speaker 14: best multiplayer maps offering in terms of bringing back iconic favorites,
Speaker 14: modernizing them for a new generation, but also pouring in
Speaker 14: an incredible zombies element that has never seen its way
Speaker 14: into modern warfare. It's open world, it's expansive, so Zombies
Speaker 14: players are now getting some kind of flex that they
Speaker 14: haven't usually seen. And what we've also seen is Carrie
Speaker 14: forward this new endeavor that we also talked about for
Speaker 14: many years about if we're going to go back to
Speaker 14: back with two big blockbuster premium releases within the modern
Speaker 14: Warfare franchise, how can we honor the player investment.
Speaker 2: So if you already were.
Speaker 14: In on Modern Warfare two, now there's so much element
Speaker 14: of Carrie Forward where a lot of that gameplay and
Speaker 14: a lot of those weapons and engagement elements from last
Speaker 14: year are going to carry into this year instead of
Speaker 14: forcing players to have to reset, which was really what
Speaker 14: we would argue was the model of yesteryear.
Speaker 2: So we were signaling this big.
Speaker 14: Shift in how we were thinking about content releases even
Speaker 14: last year. And you know, it's been many, many years
Speaker 14: in the making, and it's just a tip of the
Speaker 14: hat of how Call of Duty is such an incredible
Speaker 14: content engine.
Speaker 5: Joined to Caroline's point, Bloomberg did report overnight that the
Speaker 5: development time for Modern Warfare three was about eighteen months
Speaker 5: from sort of conception to today. Traditionally he is to
Speaker 5: turn around a game like this, right, was that the
Speaker 5: timeline that you work too.
Speaker 2: No, that's wholly inaccurate.
Speaker 14: But you know, I understand, you know, journalists or other
Speaker 14: people from the outside may be looking in and make
Speaker 14: some assumptions or speculate on how this is done. But
Speaker 14: like I said, you know, I've I've been a part
Speaker 14: of the Call of Duty organization for now five years
Speaker 14: and just seeing how incredible the architecture around development has become.
Speaker 14: Like like I said before, we had been seeing for
Speaker 14: many years players asking for you know, more engagement, deeper
Speaker 14: extensions in the series that they were spending so much
Speaker 14: time in, and so I think Mount of Warfare three
Speaker 14: in addition to it being this incredible foray of you know,
Speaker 14: blockbuster premium rich content you can kind of pick your
Speaker 14: own adventure in so many different ways, but also bringing
Speaker 14: back some modernization to iconic favorites is a beautiful kind
Speaker 14: of combination.
Speaker 2: On the backdrop of our twenty anniversary.
Speaker 14: It speaks to college can release you know, blockbuster premium
Speaker 14: titles year on year.
Speaker 2: Like no one else.
Speaker 14: But we can also really extend the conversation and think
Speaker 14: differently about how we rally our development teams to make magic.
Speaker 5: Happen, Johanna, before we run out of time, there are
Speaker 5: two big audience questions, your gameplay questions, which are what
Speaker 5: are you doing about anti cheat programs? And also cross
Speaker 5: console play No PC is kind of the request.
Speaker 14: We get a lot of requests, you know, part of
Speaker 14: being this big and working at the scale that we
Speaker 14: do is that we have an incredible community and they're
Speaker 14: very passionate and very vocal, so we're always taking notes.
Speaker 2: But with respect to anti cheat, couldn't be prouder.
Speaker 14: I mean, the Ricochet initiative is twenty four to seven
Speaker 14: multi year, you know, endeavor for us where we've really
Speaker 14: prioritized integrity and making sure that we're always on. We
Speaker 14: just announced as well some of our more machine learning
Speaker 14: technology that we're pouring in as an investment to deliver
Speaker 14: protection for our players with respet back to cheating and
Speaker 14: hacking at scale, in addition to what we're doing with
Speaker 14: our human resources who are always on.
Speaker 2: In terms of this battle, we know it's a battle
Speaker 2: that's you know, never going to end.
Speaker 14: You have to be very sophisticated in the head of
Speaker 14: the curve on many many of the things that we'll see.
Speaker 14: But it's an incredible initiative. We're really happy with the
Speaker 14: investments we're making in that regard.
Speaker 4: Channa Fairies, thank you for your time, Senior vice president
Speaker 4: and general manager of Call of Duty at Activision Blizzard.
Speaker 5: Okay, time for going viral. The actors strike might have ended,
Speaker 5: but the impact is still being felt. For the second
Speaker 5: time in two weeks, Disney is overhauled its schedule of
Speaker 5: film releases, announcing delays to movies like Deadpool.
Speaker 3: And Captain America. Plus.
Speaker 5: Later today, we'll hear from the Screen Actors Guild at
Speaker 5: a press conference about the new deal. Blouem Post Philich
Speaker 5: Schellett joins us on set. So let's start with the delays, right.
Speaker 5: I think there's relief that the one hundred and eighteen
Speaker 5: day strike is over, but the content slate is still
Speaker 5: in question here going forward.
Speaker 15: Yeah, I mean the content. Yeah, there's a lot of
Speaker 15: movies being delayed. But also I think more broadly, you know,
Speaker 15: you're going back the era of peak TV that Hollywood
Speaker 15: was in for the past couple of years. That's over, right,
Speaker 15: We're going back to a much leaner time.
Speaker 4: Ultimately, what pushes back, what causes these delays, is because
Speaker 4: what few actors needing to go to too many projects
Speaker 4: all at the same time. How difficult is this to
Speaker 4: make the streamlined?
Speaker 3: It is going to be difficult. There's going to be
Speaker 3: a big pile up.
Speaker 15: But I think, you know, the promotion machine of Hollywood
Speaker 15: is going to snap back into gears. So I think
Speaker 15: everybody's feeling relief about that. Now the stars can go
Speaker 15: back and actually promote these movies that are coming out,
Speaker 15: you know, in December.
Speaker 3: You know already you see Breed Larsen is.
Speaker 15: Going to happen the Tonight show to promote The Marvels,
Speaker 15: which is out this weekend. So I think that will
Speaker 15: help just be able to you know, publicize these shows
Speaker 15: in the.
Speaker 4: Movies when I mean to find a details of all
Speaker 4: bit mined out, but I think ultimately what will change
Speaker 4: in the shooting of these movies from the renegotiation contracts,
Speaker 4: I mean ultimately also waiting for teamsters and others to
Speaker 4: then potentially tag to the streets.
Speaker 3: Yeah, soon away.
Speaker 15: Well, in broad strokes, I mean, the two things they
Speaker 15: finally worked out were AI protections and compensation for hit
Speaker 15: movies and TV shows on streaming services. So those were
Speaker 15: the final two sticking points. We don't know the details yet,
Speaker 15: but you know, I think what they've said is that,
Speaker 15: you know, the actors will have some consent over their
Speaker 15: use of AI generated images of themselves, and also that
Speaker 15: there will be a pool of compensation created from hit
Speaker 15: streaming movies and TV shows that will then be distributed
Speaker 15: to the actors.
Speaker 5: And physics real quick essentially depress elated. This is just ratification,
Speaker 5: a procedural thing, right, Yeah.
Speaker 3: They just need that.
Speaker 15: There's one hundred and sixty thousand members of this union
Speaker 15: that will have to ultimately vote on the fine points.
Speaker 3: But I think that's largely given that will pass well.
Speaker 4: One thing that we're all looking forward to maybe is
Speaker 4: seeing some new content on the slate. Felix Jellette, thank
Speaker 4: you so much for all things to do with Hollywood.
Speaker 3: But that does it for this particular.
Speaker 4: Edition of Bloomberg Technology and for Ed's time right here
Speaker 4: in New York. I'm sad to say you're going back
Speaker 4: to the West Coast, not Hollywood, though.
Speaker 5: But it has been a good week in New York City.
Speaker 5: I've enjoyed it here. I am going back to San Francisco.
Speaker 5: Big week ahead, APEX, a lot of big names in town,
Speaker 5: but it was a big show.
Speaker 3: Recap on the podcast. Thank you for listening. Where we get.
Speaker 5: Yours on the Bloomberg platforms, Apple and Spotify, and iHeart
Speaker 5: for the final time this week from New York City.
Speaker 5: This is Bloomberg Technology.