WEBVTT - Ark Funds Sell Nvidia and AI's Impact on Travel 0:00:01.680 --> 0:00:02.360 From Marhart. 0:00:02.520 --> 0:00:06.920 We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.280 --> 0:00:11.319 This is Bloomberg Technology with Caroline Hyde and Ed Love Love. 0:00:24.520 --> 0:00:27.760 I'm Caroline Hyde back at Bloomberg's World headquarters in New York. 0:00:28.080 --> 0:00:31.960 This is Bloomberg Technology Today Tech. It's on top. We 0:00:32.000 --> 0:00:33.960 are diving into the AI rally. 0:00:34.040 --> 0:00:37.680 He's looking at you, Marvell and Nvidia Hype versus Reality. 0:00:38.040 --> 0:00:40.600 And later we have arts Kathy Wood joining to discuss 0:00:40.680 --> 0:00:41.280 that rally. 0:00:41.320 --> 0:00:43.800 Why she sold out of Nvidia in her flagship fund 0:00:44.120 --> 0:00:45.000 at the start of the year. 0:00:45.440 --> 0:00:48.320 And as we approach Memorial Day weekend, how is AI 0:00:48.520 --> 0:00:52.440 changing how we travel? Choice Hotel cio. That's Brian Kirkland 0:00:52.479 --> 0:00:55.000 is going to join to explain more on what to expect. 0:00:55.000 --> 0:00:57.480 But first let's just have a look at the macro picture. 0:00:57.600 --> 0:00:59.680 You know what is weighing over this market over the 0:00:59.760 --> 0:01:02.440 last few trading days. It has been the debt ceiling demarcle. 0:01:02.480 --> 0:01:04.920 It continues, still no answer, but there is hope is 0:01:05.000 --> 0:01:06.760 driving the Nasdaq up one point eight percent As we 0:01:06.800 --> 0:01:08.640 head towards the weekend, Volumes just a little bit thinner 0:01:08.640 --> 0:01:10.800 ahead of the Memorial On weekend here in the United States, 0:01:11.120 --> 0:01:13.800 two year yield actually seeing a reversal right there, you're 0:01:13.800 --> 0:01:17.240 seeing seven basis points, almost eight basis points, still pushing high. 0:01:17.360 --> 0:01:19.200 Is that on the flationary read that we see the 0:01:19.200 --> 0:01:21.360 macro data coming in just showing that the Federal Reserve 0:01:21.400 --> 0:01:24.440 still needs to tamp down on that all important price. 0:01:24.760 --> 0:01:27.280 The PCE data that they can particularly look at more 0:01:27.360 --> 0:01:29.800 four point four percent year on year growth. Bitcoin no 0:01:29.959 --> 0:01:31.800 managing to get a bed as the US dollar. 0:01:31.640 --> 0:01:32.959 Coming calms down a little. 0:01:33.040 --> 0:01:35.479 Maybe we're not searching for such safety from the US 0:01:35.560 --> 0:01:37.920 dollar today. Let's get the latest though on this debt sealing, 0:01:37.920 --> 0:01:38.959 the negotiations, because it. 0:01:38.959 --> 0:01:39.760 Is fast moving. 0:01:40.080 --> 0:01:42.959 Bloomberg's Balance and Power co host Joe Matthew and Policea 0:01:43.000 --> 0:01:45.440 says with us in Washington and just is it going 0:01:45.480 --> 0:01:48.560 to be a busy weekend for future It's a great question. 0:01:48.680 --> 0:01:51.000 It will be a working weekend for somebody. Even if 0:01:51.000 --> 0:01:52.840 they come to a deal today, staffords are going to 0:01:52.880 --> 0:01:55.160 have to work the weekend on Capitol Hill to actually 0:01:55.280 --> 0:01:58.040 write legislation. Keep in mind, we're just talking really about 0:01:58.040 --> 0:02:01.200 bullets here, top line points that would go into a 0:02:01.240 --> 0:02:04.160 potential deal, and then that would start the clock ticking. 0:02:04.160 --> 0:02:06.240 I will tell you that folks I talked to over 0:02:06.240 --> 0:02:07.920 the course of the week on Capitol Hill were really 0:02:08.000 --> 0:02:11.600 hoping Democrats and Republicans to have something done before the 0:02:11.639 --> 0:02:14.720 weekend so investors wouldn't have a lot of fear going 0:02:14.760 --> 0:02:17.040 long into a long weekend, and it's really unclear if 0:02:17.040 --> 0:02:19.359 that's going to happen. There is a sense that something 0:02:19.400 --> 0:02:22.400 may come about here today as they start to narrow differences, 0:02:22.639 --> 0:02:25.280 And it's interesting here some of the more significant budget 0:02:25.280 --> 0:02:28.840 cuts that had been demanded by Republicans appear to not 0:02:29.040 --> 0:02:31.799 actually be happening here. This actually could be a bit 0:02:31.800 --> 0:02:33.440 of a wash with what we're seeing, and I do 0:02:33.480 --> 0:02:35.480 want to stress there's a lot we don't know. Even 0:02:35.520 --> 0:02:37.680 some of the things we're hearing could change over the 0:02:37.680 --> 0:02:40.760 course of this day as negotiators continue their work. What 0:02:40.800 --> 0:02:43.360 we do have, though, is a likely two year raise 0:02:43.520 --> 0:02:47.280 in the debt ceiling, two years in capping discretionary spending 0:02:47.320 --> 0:02:50.480 for that period of time except the Pentagon. Defense spending 0:02:50.639 --> 0:02:53.239 as we understand, would rise three percent next year, which 0:02:53.280 --> 0:02:57.000 is in line in fact with President Biden's budget proposals. 0:02:57.040 --> 0:02:59.600 Here would cut about ten billion dollars as well from 0:02:59.760 --> 0:03:02.160 an eighty billion dollar chunk that was going to go 0:03:02.200 --> 0:03:06.000 to the IRS as part of the Inflation Reduction Act. 0:03:06.240 --> 0:03:08.560 There are some things we don't know about in terms 0:03:08.560 --> 0:03:11.760 of what would happen to unspend COVID funding or for 0:03:11.800 --> 0:03:14.520 that matter, permitting reform, which we've been hearing a lot about. 0:03:14.800 --> 0:03:18.080 So it's really a critical moment here. It's very quiet 0:03:18.080 --> 0:03:20.520 in Washington, and things are getting quiet around the negotiating 0:03:20.560 --> 0:03:23.359 table as well at Caroline, which might in fact mean 0:03:23.440 --> 0:03:24.519 that we are close to a deal. 0:03:24.880 --> 0:03:28.400 Calm before the storm, bringingmo bouncer Power co host Joe Matthew, 0:03:28.560 --> 0:03:31.040 We thank you so much. Let's dive into some of 0:03:31.080 --> 0:03:33.600 your tech movizo on the day, because aside from politics, 0:03:33.600 --> 0:03:36.000 we are front and center artificial intelligence on the day. 0:03:36.360 --> 0:03:39.080 Just look at how some of these companies are being powered. 0:03:39.080 --> 0:03:40.560 I want to first though, check in on what's happening 0:03:40.600 --> 0:03:43.200 with Tesla because actually getting a nice rally here. Interestingly, 0:03:43.560 --> 0:03:47.600 frenemies for the day forward plus Tesla maybe sharing some 0:03:47.640 --> 0:03:50.600 of that charging infrastructure they do this deal, they go 0:03:50.680 --> 0:03:53.800 on guess where Twitter spaces to discuss it. Tesla currently 0:03:53.880 --> 0:03:56.120 riding high app amost six percent on the day in video, 0:03:56.160 --> 0:03:58.920 though at one point eight percent after that enormous rally 0:03:59.120 --> 0:04:02.120 the previous day their earnings, really adding what one hundred 0:04:02.120 --> 0:04:04.520 and eighty billion in one day to the market capitalization. 0:04:04.600 --> 0:04:05.480 We haven't really seen that. 0:04:05.520 --> 0:04:07.320 Only three times in history have we've seen that sort 0:04:07.360 --> 0:04:11.440 of market cap ad on one single day. Marvel playing 0:04:11.520 --> 0:04:13.360 some catch up to look, this is a fifty billion 0:04:13.400 --> 0:04:16.360 dollar overall market cap for this company, so nowhere near 0:04:16.400 --> 0:04:19.440 the near trillion in video is coming upon. But Marvel 0:04:19.520 --> 0:04:23.080 Technology also showing that artificial intelligence is the way for 0:04:23.200 --> 0:04:26.080 chip makers at the moment, twenty seven percent rally as 0:04:26.120 --> 0:04:28.360 their numbers show that official intelligence is going to be 0:04:28.440 --> 0:04:32.039 driving their future revenue growth. Let's stick into that AI rally. 0:04:32.120 --> 0:04:34.560 Let's go to a Wooloomberg. Intelligence is man deep singing 0:04:34.640 --> 0:04:38.320 manded two hundred million dollars is there or thereabouts they 0:04:38.400 --> 0:04:41.800 get from AI powered silicon, and it's going to grow, 0:04:42.200 --> 0:04:44.520 if not double. They think, what four hundred million in 0:04:44.520 --> 0:04:45.640 the fiscal twenty twenty. 0:04:45.400 --> 0:04:49.560 Four, Yeah, and they're talking about eight hundred million now. 0:04:49.640 --> 0:04:52.400 So that is what I think got the market excited. 0:04:52.440 --> 0:04:56.160 But look, I think one thing is clear is inventory 0:04:56.320 --> 0:05:00.039 bottoming is playing out for all or most of the 0:05:00.120 --> 0:05:03.240 chip makers. I wouldn't say that for memory yet, but 0:05:03.560 --> 0:05:06.640 for the fabulous chip makers, we saw that with Nvidia. 0:05:06.720 --> 0:05:09.520 You know, they've raised their guidance by almost forty percent, 0:05:09.600 --> 0:05:12.320 so we didn't see that kind of a guidance race. 0:05:12.440 --> 0:05:16.080 But I think the bottoming part is almost certain given 0:05:16.120 --> 0:05:17.720 what bea hearing from everybody. 0:05:18.560 --> 0:05:20.760 Just remind us where Marvel has leaned in. 0:05:21.040 --> 0:05:24.680 What are the in particular offering in terms of networking, 0:05:24.839 --> 0:05:27.920 in terms of the ability to service what basically is 0:05:27.960 --> 0:05:30.120 a huge compute need by nearly everyone right now. 0:05:31.040 --> 0:05:33.920 Yeah, and the big change right now is things are 0:05:33.920 --> 0:05:38.200 moving from CPUs towards these custom accelerators and that's what 0:05:38.279 --> 0:05:42.119 you need for running large language models and doing generative AI. 0:05:42.279 --> 0:05:45.080 And that's where Marvel, even though it's a niche player 0:05:45.160 --> 0:05:49.200 when it comes to networking and storage, but that's how 0:05:49.240 --> 0:05:53.279 you design those custom chips for you know, working as accelerators, 0:05:53.279 --> 0:05:57.840 and you can do that with CPUs. Every hyperscaler is 0:05:57.960 --> 0:06:02.640 kind of doing a combination of in Vidia GPU and 0:06:02.920 --> 0:06:05.880 custom chips on the networking side, and that's where you 0:06:05.920 --> 0:06:08.240 see the demand when it comes to a small chip 0:06:08.279 --> 0:06:09.279 maker like Marvell. 0:06:10.000 --> 0:06:12.000 Well, we can see the public market impact on the 0:06:12.080 --> 0:06:15.080 day Bluemmeg intelligences mandats saying thank you so much for 0:06:15.080 --> 0:06:17.520 breaking it down, and let's just think about how this 0:06:17.600 --> 0:06:20.480 affects publicly traded companies, how it affects of course those 0:06:20.520 --> 0:06:22.560 been raising capital in the private markets as well. 0:06:22.560 --> 0:06:24.280 We're going to get the VC angle with Sarah. 0:06:24.080 --> 0:06:29.599 Counstg's Clear Capital managing director and founder, and Sarah, you 0:06:29.680 --> 0:06:31.880 hit me up on Instagram in fact, saying this in 0:06:31.960 --> 0:06:36.080 Nvidia price point, the level that they're training at the 0:06:36.120 --> 0:06:39.719 overall price, this is really hefty stuff. Where are you 0:06:39.800 --> 0:06:42.880 starting to see the value in AI play, particularly on 0:06:42.920 --> 0:06:43.920 the chip side of the equation. 0:06:45.040 --> 0:06:47.760 I like Taiwan semi Conductors, right, you know, not only 0:06:47.839 --> 0:06:51.560 are they a contract manufacturer who's providing services, you know 0:06:51.600 --> 0:06:54.599 to messive companies like the Apples of the world, they 0:06:54.720 --> 0:06:58.840 actually help in Nvidia, you know, do their chip manufacturing. 0:06:58.920 --> 0:07:01.360 And so in Vidia is a good company. It has 0:07:01.400 --> 0:07:05.240 done a great job of being relevant, you know, through crypto, 0:07:05.400 --> 0:07:08.360 through AI, you know, through gaming over the last couple 0:07:08.400 --> 0:07:11.560 of years. But the reality is that like it's getting 0:07:12.120 --> 0:07:15.200 way too much credit for where it's real earnings are 0:07:15.240 --> 0:07:17.240 and where the revenue is, and I think that that's 0:07:17.320 --> 0:07:20.560 dangerous to keep buying into that kind of rally when 0:07:20.560 --> 0:07:21.440 it's not clear. 0:07:21.240 --> 0:07:23.320 That they're going to grow into those shoes Versus a 0:07:23.320 --> 0:07:27.480 Taiwan semiconductor that candidly I think is close to undervalued 0:07:28.120 --> 0:07:31.040 for all of the actual you know, amounts of chips 0:07:31.040 --> 0:07:33.320 it's manufacturing and the technology there. 0:07:33.480 --> 0:07:36.240 This technology is not something that's easy to build, but 0:07:36.520 --> 0:07:39.160 it's something that there are several companies that do it. 0:07:39.680 --> 0:07:42.360 And the reality right now one of those companies is 0:07:42.400 --> 0:07:45.920 getting crazy credit and all the other companies are sort 0:07:45.920 --> 0:07:47.360 of not feeling the loves. 0:07:47.760 --> 0:07:50.320 Yeah, when I'm looking at what twenty times future earnings 0:07:50.320 --> 0:07:52.760 is why we're currently trading at for TSMC. When you're 0:07:52.760 --> 0:07:55.600 looking over that's what a price point is for in video, 0:07:55.680 --> 0:07:59.400 we are fifty five times future earnings. Putting on your 0:08:00.480 --> 0:08:04.040 hat and thinking about the companies within your portfolio. Have 0:08:04.080 --> 0:08:05.880 you lent in in any way to some of the 0:08:06.000 --> 0:08:08.960 under a lying infrastructure to help power the AI boom 0:08:08.960 --> 0:08:10.800 that we're seeing. Is it more that you're having to 0:08:10.840 --> 0:08:14.000 ready your portfolio companies for the disruption that AI and 0:08:14.120 --> 0:08:17.640 indeed large language models and generative AI might have on them. 0:08:18.080 --> 0:08:19.320 You know, it's a little bit of both. 0:08:19.600 --> 0:08:22.720 I'm an investor in groc which is a TPU company. 0:08:23.240 --> 0:08:25.560 You know, it spun out of Google and it's definitely 0:08:25.560 --> 0:08:28.080 an interesting company in the space in the private sector 0:08:28.720 --> 0:08:32.400 working on these chips started for autonomous vehicles, but a 0:08:32.440 --> 0:08:35.040 lot of that you know, same technology and compute power 0:08:35.120 --> 0:08:39.120 needed is incredibly relevant for AI in some of the 0:08:39.280 --> 0:08:42.400 LLLMAI that we're seeing. And then you know, the reality 0:08:42.480 --> 0:08:44.520 is that there's a lot of great software companies being 0:08:44.520 --> 0:08:46.800 built around this as well. I'm an investor in Forethought, 0:08:47.280 --> 0:08:50.120 which is a customer service AI company that's been doing 0:08:50.160 --> 0:08:53.160 incredibly well for a few years. I'm an investor in 0:08:53.160 --> 0:08:56.560 in Global Metals, which is a rare earth mineral mining 0:08:56.600 --> 0:09:00.280 company that actually uses AI to figure out, you know, 0:09:00.360 --> 0:09:02.960 where can we get more lithium, Where can we get 0:09:03.160 --> 0:09:06.560 more of these rare materials that we need to make 0:09:06.760 --> 0:09:10.040 our batteries for everything from you know, our tesla is 0:09:10.080 --> 0:09:12.880 to our iPhones because right now it's just incredibly hard. 0:09:12.760 --> 0:09:14.440 And expensive to source that material. 0:09:14.760 --> 0:09:17.280 So, you know, if software was eating the world fifteen 0:09:17.360 --> 0:09:20.000 years ago, I think it's reasonable to say now that. 0:09:20.400 --> 0:09:22.400 AI is it is. 0:09:22.720 --> 0:09:27.679 And yet Sarah must be inundated with emails that suddenly 0:09:27.720 --> 0:09:31.880 have companies vaguely reworking themselves, repivoting themselves to seemingly be 0:09:31.960 --> 0:09:35.920 adopting this new sea change. How easy is it and 0:09:36.000 --> 0:09:38.640 understandable is it to ensure that you're getting the right 0:09:38.720 --> 0:09:42.200 founder and indeed the right business model built upon it. 0:09:42.720 --> 0:09:43.480 Yeah? Absolutely. 0:09:43.559 --> 0:09:46.240 You know, the reality is that a lot of people 0:09:46.240 --> 0:09:48.960 who were Web three companies a year ago, and you know, 0:09:49.080 --> 0:09:51.640 big data companies three years before that, are now suddenly 0:09:51.679 --> 0:09:54.679 AI companies. And they either have the smartest, most you know, 0:09:54.800 --> 0:09:57.560 visionary founders in the world who just can never quite 0:09:57.559 --> 0:10:00.280 get a product launch, or you know, they're hustle and 0:10:00.280 --> 0:10:02.200 they're trying to make it work. But the reality is 0:10:02.240 --> 0:10:03.800 that you know, they're they're sort. 0:10:03.679 --> 0:10:04.559 Of chasing the trend. 0:10:04.559 --> 0:10:07.560 And so the nice thing about AI is that it's 0:10:07.600 --> 0:10:10.600 not an easy space, meaning that if you come in 0:10:10.760 --> 0:10:15.520 and you don't have pretty significant you know, engineering experience, 0:10:15.600 --> 0:10:18.640 you don't have some experience with AI, with you know, mL, 0:10:18.760 --> 0:10:21.720 with with large language models, all of those things, you know, 0:10:21.760 --> 0:10:24.080 it's incredibly hard to say that that you have a 0:10:24.160 --> 0:10:27.280 chance incredibly building. Now, could you build a really slight 0:10:27.360 --> 0:10:31.160 consumer application that pulls in you know, that relies on 0:10:31.640 --> 0:10:35.600 on APIs from existing AI companies absolutely, and I think 0:10:35.600 --> 0:10:37.640 we'll see a lot of those, and that's not a 0:10:37.679 --> 0:10:42.280 bad thing, but it is surprisingly somewhat easy to tell 0:10:42.320 --> 0:10:45.760 who's real and who's not because very few people have, 0:10:46.040 --> 0:10:49.560 you know, the technical background that's going to allow them 0:10:49.880 --> 0:10:52.680 to make a fundamental breakthrough in AI, and even the 0:10:52.679 --> 0:10:56.960 fundamental breakthrough is take an incredibly long time. They're in expensive, 0:10:57.080 --> 0:10:58.280 and so there's just not going. 0:10:58.200 --> 0:10:59.000 To be a ton of them. 0:10:59.640 --> 0:11:02.560 When you multi stage bench capital firms such as yourself, 0:11:03.080 --> 0:11:05.439 how do you decide what size of company you want 0:11:05.440 --> 0:11:07.720 to be getting in on at this particular level, what 0:11:07.840 --> 0:11:11.400 sort of valuation you can even be picking, because what 0:11:11.960 --> 0:11:15.120 are the comparables out there in the public market When 0:11:15.160 --> 0:11:20.600 you're seeing such enormous rallies in a place like Nvidia. 0:11:19.480 --> 0:11:21.480 I mean, I think that you have to be practical. 0:11:21.559 --> 0:11:23.920 Right right now, venture is definitely on a bit of 0:11:23.960 --> 0:11:26.719 a downturn, and the only area where you're seeing these 0:11:26.760 --> 0:11:31.000 sort of unreasonable or sky high valuations is in AI. 0:11:31.480 --> 0:11:33.520 And you know, if you think that somebody is building 0:11:33.520 --> 0:11:36.880 a company that has a real fundamental sort of intellectual 0:11:36.920 --> 0:11:39.360 property mode that could truly change the world, like you 0:11:39.480 --> 0:11:41.240 actually believe that it's the next Google. 0:11:41.559 --> 0:11:42.240 It's the next. 0:11:42.080 --> 0:11:46.120 Google, then maybe you do invest in a slightly higher valuation. However, 0:11:46.400 --> 0:11:47.800 you know, I think what a lot of people do 0:11:47.880 --> 0:11:50.679 is they're just sort of jumping on h you know, 0:11:50.840 --> 0:11:54.760 any pitch deck that looks interesting, and they're pain prices 0:11:54.800 --> 0:11:57.000 that are just completely you know, out of whack to 0:11:57.120 --> 0:12:00.600 reality and the market right now in venture and so 0:12:00.960 --> 0:12:03.120 you know, for me, I've been doing a lot of 0:12:03.160 --> 0:12:05.960 my AI investing a little bit later when it's a 0:12:05.960 --> 0:12:09.120 little bit de risk because a lot of my AI 0:12:09.160 --> 0:12:12.400 founders are doing more kind of fundamental uh you know, 0:12:12.520 --> 0:12:15.199 work where you don't know it day zero, how it's 0:12:15.240 --> 0:12:17.920 going to pan out. I think early stage AI investing 0:12:18.000 --> 0:12:22.280 right now, you know, is incredibly incredibly risky, unless again, 0:12:22.320 --> 0:12:26.040 it's something that's building you know, building a consumer enterprise 0:12:26.120 --> 0:12:30.040 interface that upfront they say, look, we're using GPT, we're 0:12:30.160 --> 0:12:34.160 using you know, these existing AI tools you know, to 0:12:34.240 --> 0:12:36.120 make it easier to do X, y Z. 0:12:36.480 --> 0:12:36.680 Great. 0:12:36.880 --> 0:12:39.040 That's an interesting business that I believe you might be 0:12:39.040 --> 0:12:41.760 able to scale much more easily than the idea that 0:12:42.040 --> 0:12:43.920 you know, two women in a garage are going to 0:12:43.960 --> 0:12:46.560 go make the next you know, AI super chip. 0:12:47.280 --> 0:12:49.560 Here so the two women, but the Clear Capital managing 0:12:49.559 --> 0:12:52.600 director and founder Sericans really great to have some time 0:12:52.640 --> 0:13:03.760 with you. Thank you. Builder AI it's an AI powered 0:13:03.800 --> 0:13:06.080 software platform. It's raised more than two hundred fifty million 0:13:06.080 --> 0:13:09.800 dollars in its Series D fundraising led by Qia the 0:13:09.920 --> 0:13:13.000 Kata Fund. I sat down with a co founder such 0:13:13.040 --> 0:13:15.840 an dev Doogle at the Cator Economic Forum, where he 0:13:15.960 --> 0:13:18.960 discussed the importance of digital innovation and in fact well 0:13:19.000 --> 0:13:22.319 the investment he received from that sovereign player and how 0:13:22.320 --> 0:13:23.160 it married with VC. 0:13:23.440 --> 0:13:24.079 Just take a listen. 0:13:26.320 --> 0:13:29.599 Our total round was two on a fifty million. The 0:13:29.760 --> 0:13:34.080 region for US is really important, not only the GCC, 0:13:34.240 --> 0:13:37.560 but also because we think between the markets here, there's 0:13:37.679 --> 0:13:40.120 so much digital innovation that's going on, so many small 0:13:40.160 --> 0:13:43.320 businesses that are now building software. But I think the 0:13:43.320 --> 0:13:46.760 second thing is, especially with the QIA, they're a very 0:13:46.840 --> 0:13:50.040 patient investor and long term capital and when you're trying 0:13:50.040 --> 0:13:54.240 to build something generational, you're going to make mistakes and 0:13:54.280 --> 0:13:55.920 you're going to learn from those mistakes. And you want 0:13:55.960 --> 0:13:58.600 someone that's not running necessarily a seven year cycle. Yeah, 0:13:58.640 --> 0:13:59.800 but they're really thinking about the. 0:13:59.720 --> 0:14:00.719 World at large. 0:14:01.080 --> 0:14:04.959 You, of course kept on some previous investors insight for example, 0:14:05.840 --> 0:14:08.360 what's interesting do vcs do you think have to be 0:14:08.400 --> 0:14:12.200 worried about basically startups now going direct to sovereign wealth funds? 0:14:12.280 --> 0:14:14.640 Is that becoming an obvious form of capital now? 0:14:14.800 --> 0:14:17.200 Not me evening to see these sort of you know, 0:14:17.320 --> 0:14:19.040 middle people who are benched capital. 0:14:19.920 --> 0:14:22.800 Look, I think it's different, right, I don't see the 0:14:22.800 --> 0:14:26.080 big sovereigns writing one million dollar checks, ten million dollar checks. 0:14:27.800 --> 0:14:30.920 I definitely think Series C and D or the early 0:14:31.040 --> 0:14:34.359 end of it. But you could easily crossover into sovereigns 0:14:34.400 --> 0:14:36.480 just like you could cross into crossover funds at that point. 0:14:37.560 --> 0:14:39.840 It really depends on what you're building. Yeah, if you're 0:14:39.880 --> 0:14:44.160 if you're building to be acquired, you're probably well suited 0:14:44.200 --> 0:14:46.520 towards a more venture style investment. 0:14:47.880 --> 0:14:50.440 If you're building where it's. 0:14:50.400 --> 0:14:54.600 Sort of a bit more generational, it's it's a bigger platform. 0:14:55.120 --> 0:14:56.320 You want to have the right mix. 0:14:56.320 --> 0:14:58.240 It's always a balance, right, So we want to have 0:14:58.320 --> 0:15:01.960 an insight, we want have an iconic, but we also 0:15:02.000 --> 0:15:04.080 want to have a QIA And what it does is 0:15:04.080 --> 0:15:06.520 it gives us a right cause but also the right connectivity. 0:15:07.400 --> 0:15:09.320 That's so interesting that you say, what you're looking to 0:15:09.360 --> 0:15:11.880 build because perhaps people might have gotten the wrong end 0:15:11.920 --> 0:15:13.560 of the stick a few weeks ago when they saw 0:15:13.600 --> 0:15:16.080 that you took money from Microsoft and you're building within 0:15:16.800 --> 0:15:20.560 their platform, offering your services on Microsoft. 0:15:20.920 --> 0:15:22.040 Why did you do that? 0:15:22.160 --> 0:15:24.720 If you're looking, I'm trying to insinuate the between the 0:15:24.800 --> 0:15:27.680 lines that you're building to be a big public company, 0:15:27.720 --> 0:15:29.640 individual and scale great heights. 0:15:30.080 --> 0:15:33.840 Look and it might sound raisen, We're looking to build 0:15:33.840 --> 0:15:36.400 a triger lot of business. We're not looking to sell 0:15:36.480 --> 0:15:40.080 for a few billions, not ourmo because it's never about 0:15:40.120 --> 0:15:43.880 the money, as much as money is important. And so 0:15:43.920 --> 0:15:48.240 when you're looking to build that big and you're looking 0:15:48.280 --> 0:15:50.920 to be that grassroot. And how suffer is used, Office 0:15:50.960 --> 0:15:54.920 is used everywhere, Windows is used everywhere. There's a lot 0:15:54.920 --> 0:15:56.480 of patterns you learn from someone that sort of solved 0:15:56.520 --> 0:15:59.960 the problem. I think the second is always again it's balanced. 0:16:00.360 --> 0:16:03.440 And so we have two corporates that have had worked 0:16:03.440 --> 0:16:06.080 with us. One we haven't disclosed yet for obvious seasons. 0:16:06.640 --> 0:16:10.880 But with Microsoft, the key was alignment around mission and 0:16:11.000 --> 0:16:16.440 they want to digitally transferm the world. Aligner around values 0:16:17.560 --> 0:16:23.200 we just get along so important and it's a balance 0:16:23.240 --> 0:16:26.600 also with our cap table. Yeah, because it's not an 0:16:26.600 --> 0:16:29.720 investment because that's an exit. It's an investment because there 0:16:29.760 --> 0:16:31.760 is joint value that can be created when you bring 0:16:31.760 --> 0:16:33.240 those two platforms together. 0:16:33.640 --> 0:16:36.600 Such a dev Doogle co foundal builder AI that helps 0:16:36.600 --> 0:16:39.600 anyone be able to build websites, apps, you name it. Now, 0:16:39.720 --> 0:16:41.640 let's take a look at some of the impact of 0:16:41.840 --> 0:16:45.280 artificial intelligence on the financial sector, in particular, what differentiates 0:16:45.280 --> 0:16:48.080 companies kind of slapping on chatbots to existing tech to 0:16:48.200 --> 0:16:51.320 marketing and saying, look, this is us, this is AI. 0:16:52.160 --> 0:16:53.520 Maybe we're starting to call. 0:16:53.400 --> 0:16:57.120 It AI washing, and well those actually are on the 0:16:57.160 --> 0:16:59.920 differentiated side. Who's actually building the artificial in products of 0:17:00.000 --> 0:17:02.600 people really need? That's bring in ramse you is Eric 0:17:02.720 --> 0:17:03.680 Gyman for more. 0:17:03.520 --> 0:17:06.600 On this, because you've been coining and using this frame 0:17:07.640 --> 0:17:08.480 AI washing. 0:17:08.880 --> 0:17:11.560 Everyone doing it like who is out there at the 0:17:11.560 --> 0:17:13.879 moment sort of naming that they've got some large language 0:17:13.880 --> 0:17:15.520 of model and d got some chatbot that's going to 0:17:15.520 --> 0:17:16.399 solve all your issues. 0:17:16.840 --> 0:17:20.399 I think far more companies are marketing the use of AI, 0:17:20.480 --> 0:17:22.280 how they have a chatlot that's going to revolutionize their 0:17:22.320 --> 0:17:24.840 industry than you're truly trying to solve problems for me. 0:17:24.960 --> 0:17:26.920 I've never met a customer who said, I just wish 0:17:27.000 --> 0:17:28.719 I could chat with my bank account. I would ask 0:17:28.800 --> 0:17:31.240 a questions and learn things. Instead, they tend to ask 0:17:31.280 --> 0:17:33.000 things like I'd like to pay less for this service 0:17:33.040 --> 0:17:35.440 and paying for I'd like to automate my accounting, close 0:17:35.480 --> 0:17:37.720 my books quicker. Those are the kind of things. So 0:17:37.760 --> 0:17:40.720 I think often if you see companies claiming AI, but 0:17:40.800 --> 0:17:44.920 you can't find real customers behind it, they're not talking 0:17:44.960 --> 0:17:47.920 about how they're integrating AI truly into the workflow of 0:17:47.960 --> 0:17:50.200 their software. It's probably AI washing. 0:17:50.960 --> 0:17:53.240 Okay, So how do you ensure that what you're trying 0:17:53.240 --> 0:17:55.560 to market, what you're trying to say, doesn't come across 0:17:55.600 --> 0:17:56.040 as washing. 0:17:56.359 --> 0:17:59.680 It really starts first with starting with the customer trying 0:17:59.680 --> 0:18:02.040 to under stand their pain points. For us, our mission 0:18:02.080 --> 0:18:04.280 is to help companies spend less money in time. We 0:18:04.359 --> 0:18:06.280 help the average customer cut there since by three and 0:18:06.280 --> 0:18:08.399 a half percent per year. And so one of the 0:18:08.480 --> 0:18:11.600 first things we did is within the user interface start 0:18:11.640 --> 0:18:15.720 to show companies where upon renewal customers maybe getting quoted 0:18:15.800 --> 0:18:17.520 higher rates than the rest of the market. So if 0:18:17.560 --> 0:18:19.639 you're paying for a software vendor and another customer is 0:18:19.640 --> 0:18:22.880 getting twenty percent less integrating it into the interface. It's 0:18:22.920 --> 0:18:27.000 not creating new novel interfaces people aren't already using, like 0:18:27.080 --> 0:18:29.639 chat interfaces, but including it and where people do things 0:18:29.760 --> 0:18:33.200 next having it fade away. We automate expense reports by 0:18:33.240 --> 0:18:37.040 polling receipts when available from whether it's email, text messages, 0:18:37.080 --> 0:18:39.200 so you don't need to add additional step. I think 0:18:39.200 --> 0:18:41.800 a lot of great AI is invisible, so. 0:18:41.720 --> 0:18:43.840 It's sort of running in the background being far more efficient. 0:18:43.960 --> 0:18:46.280 You don't suddenly realize how much more productive it's actually 0:18:46.359 --> 0:18:50.080 made you. From the perspective of which companies are coming 0:18:50.160 --> 0:18:52.639 to you asking for these sorts of issues. Have you 0:18:52.680 --> 0:18:54.800 had calls saying, look, I just need to understand what 0:18:54.920 --> 0:18:57.240 artificial intelligence offering is. Or is it more that they 0:18:57.320 --> 0:19:00.360 are calling from wherever they are geographically saying I need 0:19:00.359 --> 0:19:03.200 to cut expenses in this current economic environment. 0:19:03.680 --> 0:19:05.960 It's a great question, certainly the latter. You know, we're 0:19:06.000 --> 0:19:09.760 supporting over fifteen thousand businesses, whether it's publicly traded companies 0:19:09.800 --> 0:19:13.600 like Event Rights to Sierra Nevada Brewing Company, you know, 0:19:13.680 --> 0:19:15.960 to local businesses, and often what they're trying to do 0:19:16.000 --> 0:19:18.880 is say, look, I'm spending a lot already. Whether it's 0:19:18.920 --> 0:19:23.840 thousands to millions per year. I'd like to cut expenses down. 0:19:24.440 --> 0:19:27.240 We spend a lot more time on closing our books, 0:19:27.240 --> 0:19:32.680 on our accountants manually keeping books and records, tagging transactions. Instead, 0:19:32.760 --> 0:19:35.240 often they're asking i'd like to cut that time down 0:19:35.480 --> 0:19:38.320 so controllers can be asking strategic questions about the business, 0:19:38.320 --> 0:19:40.520 not bogged down and manual work. So it tends to 0:19:40.520 --> 0:19:42.720 come from the pin point they're actually happening, not if 0:19:42.720 --> 0:19:45.359