Speaker 1: From markhard of where Innovation, Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I met Ludlow in San Francisco. Caroline hies off today.
Speaker 3: This is Bloomberg Technology coming up on the program in video.
Speaker 3: Takes a hit as the US plans more AI chip
Speaker 3: curbs for China. Will discuss the potential impact on the
Speaker 3: semiconductor market, and we'll stick with artificial intelligence and go
Speaker 3: live to the Collision conference in Toronto for a sit
Speaker 3: down conversation with Colin Murdock of Google DeepMind plus shares
Speaker 3: of electric air taxi company Joby Surge after receiving relate
Speaker 3: regulatory approval to.
Speaker 4: Expand test flights here in the US.
Speaker 3: We have the exclusive conversation with the CEO later this
Speaker 3: hour talks about the chip sector. The Wall Street Journal
Speaker 3: reporting that the US is considering tightening curbs on the
Speaker 3: export of chips to China to increase lower power chips.
Speaker 3: This is in the context of AI, of course, of
Speaker 3: which Nvidia has been the real leader in this space.
Speaker 3: It is off by nine tens to one percent. Other
Speaker 3: players will lower AMD actually now higher half a percentage point.
Speaker 4: Let's find out what's going on. Let's understand the.
Speaker 3: Impact of this industry with Bloomberg Intelligence analysts Paula Penkell.
Speaker 4: So that's the reporting.
Speaker 3: The US is going to tighten the restrictions to include
Speaker 3: sort of lower powered chips that Nvidia have moved to
Speaker 3: introduce to get around the original curbs.
Speaker 4: To your mind, what is the impact.
Speaker 5: Here, Well, at this stage, I think the impact on
Speaker 5: Nvidia initially is roughly five billion dollars on their top
Speaker 5: line which could potentially go away. That is their exposure
Speaker 5: to China, which is twenty percent of their roughly twenty
Speaker 5: eight billion of revenues expected for twenty twenty three. But
Speaker 5: on a broader scale, look, AI is expect AI chips.
Speaker 5: AI itself is expected to grow roughly twentyfold by twenty thirty.
Speaker 5: So there is so much demand for AI chips, for
Speaker 5: these GPU chips that Nvidea makes that in the long run,
Speaker 5: I believe n Video will be able to make up
Speaker 5: any loss to the China market. I would say, however,
Speaker 5: that China is a significant market. It's huge, and so
Speaker 5: I think companies like Nvidia and others, whether it's Micron
Speaker 5: or AMD has minimal exposure, but companies. Chip companies want
Speaker 5: to be exposed, want exposure to China so that they
Speaker 5: can partake in that upside, and this latest expansion of
Speaker 5: these sanctions suggests that that may be shut down to
Speaker 5: the sector in the near term.
Speaker 3: What's so interesting about this story is we're not talking
Speaker 3: about H one hundred, the sort of cutting edge of GPU.
Speaker 3: What Nvidia did was design chips that fell below the
Speaker 3: threshold to require US license to export to China. But
Speaker 3: it brings into focus China is a consumer, right Paula
Speaker 3: talk to us about broadly the semiconductor industry and how
Speaker 3: much US design chip is going into products assembled there
Speaker 3: or into Chinese products.
Speaker 5: Well, first of all, I mean in terms of assembly,
Speaker 5: if you look at Apple, I mean they're trying to
Speaker 5: expand to India with their assembly operations. But the reality
Speaker 5: is China is a significant market. As I said before
Speaker 5: testing assembly, it's the leader in testine assembly.
Speaker 4: It does not make the AD it.
Speaker 5: Has very low exposure to the advanced chips, but again
Speaker 5: it's a growing market and companies are sort of, you know,
Speaker 5: in the middle of the US and China's trade tensions
Speaker 5: because they want the exposure they want to partake in
Speaker 5: that growth in the China market.
Speaker 3: Another chip name here in the US that's confronting the
Speaker 3: China issue is Micron reporting after the bell, what are
Speaker 3: you expecting from Micron and how they communicate their handling
Speaker 3: of this situation.
Speaker 5: Yes, well, Micron already announced their double digit revenue hit
Speaker 5: by the sanction most recent sanctions implemented by the US
Speaker 5: government or by the China government, and so I expect
Speaker 5: that will not impact this particular quarter. But this quarter
Speaker 5: is going to be really bad just because you've had
Speaker 5: you know, sluggish demand and PC and PCs and computers,
Speaker 5: and you have you know, really low and depressed Reacher prices.
Speaker 5: But many believe that this could be a trough for
Speaker 5: the company, and that's what the market hopes. I think
Speaker 5: we can't expect much from micro around for the remainder
Speaker 5: of twenty twenty four.
Speaker 3: We're talking d ram We're talking nan Bloomberg Intelligence. Is
Speaker 3: Paula Penkell saying it's gonna be bad after the bell
Speaker 3: twenty four hours time, tune in Bloomberg Technology, and I
Speaker 3: guess we will find out. Paula Penkell, BI, thank you
Speaker 3: so much. Now in today's Big Take, Bloomberg Big Take.
Speaker 3: China's tech sector has a new obsession competing with the
Speaker 3: US and its titans like Google Microsoft in the battle
Speaker 3: for dominance in artificial intelligence. Bloomberg's Jan Jang has more
Speaker 3: from Hong Kong.
Speaker 6: China's tech sector has a new obsession competing with US
Speaker 6: giants in the global AI race.
Speaker 4: Fifteen billion dollars.
Speaker 6: That's amount China is expect to spend on AI this year.
Speaker 6: Big tech players in China from Baydo, Alba, and System
Speaker 6: have launched their own large language models in the span
Speaker 6: of just several months being in their entrepreneurs one shall Trend,
Speaker 6: the founder of search engine Sogo, and maje one co
Speaker 6: founder one we one are also powering money into their
Speaker 6: startups to build Chinese own open AI. This new tech
Speaker 6: breakthrough could really split up the emergence of new platforms
Speaker 6: to host a wave of revolutionary applications, just like what
Speaker 6: happened in the mobile Internet era, from a chatboard to
Speaker 6: help manufacturers track consumption trends in the e commerce industry,
Speaker 6: to text to image applications in the gaming industry to
Speaker 6: replace concept artists, as well as smart enterprise softwares to
Speaker 6: help analyze and transcribe meetings. Chinese tech tacoons have divided
Speaker 6: opinions on how much China has to catch up with
Speaker 6: the US in AI went on me three years, another
Speaker 6: said a few months, but the gap may be getting smaller.
Speaker 6: The number of Chinese introducing AI reached more than two
Speaker 6: thirds of the US total from the beginning of this
Speaker 6: year to meet Juan, for instance, just about fifty percent
Speaker 6: in previous two years. Even with obstacles like censorship and
Speaker 6: US chip bands, Chinese companies are ready to take on
Speaker 6: the battle, and this is just the beginning.
Speaker 3: Bloomberg's Jane Jung with the Bloomberg Big Take, thank you
Speaker 3: for that reporting. Sticking with artificial intelligence, another story, we're
Speaker 3: watching black Rock joining the AI mania on the promise
Speaker 3: of productivity gains from the technology. The firm just introduced
Speaker 3: a bullish call on AI following the rally that's already
Speaker 3: driven the best ever first half of the year for
Speaker 3: the Nasdaq one hundred index. It picked out semiconductor makers
Speaker 3: companies with vast sets of data or high potential for
Speaker 3: automation as those most likely to benefit. Now coming up,
Speaker 3: how Google Deep Mind is trying to tackle humanity's biggest
Speaker 3: challenges from climate change to curing cancer with AI DeepMind.
Speaker 3: Senior business director Colin Murdock would join us live from
Speaker 3: the Collision Conference happening out in Toronto. Now keep it
Speaker 3: a quick check on shares of Google or Alphabet, the
Speaker 3: parent company.
Speaker 4: The company cut jobs.
Speaker 3: At Mapping service Ways, the tech giants' latest move to
Speaker 3: trim its operations amid a drive for efficiency in Silicon Valley.
Speaker 3: Some positions focused on advertising it ways, and they were
Speaker 3: eliminated after unit began transitioning to using Google's advertising technology.
Speaker 4: A Google spokesperson told us on Tuesday, this is Bloomberg.
Speaker 3: Let's head over to Toronto where the Techmedia Collision Conference
Speaker 3: is underway, and surprise, surprise, AI is top of mind.
Speaker 3: John Erlickman on standby for us with a very special guest,
Speaker 3: a leader in the AI field, jump.
Speaker 7: Ed, great to be with you.
Speaker 8: Yes, AI is all the rage here in Toronto at
Speaker 8: the Collision conference, and obviously a lot of people are
Speaker 8: trying to figure out where we go from here now.
Speaker 8: For Google Deep Mind, they have been thinking about the
Speaker 8: promise of AI for more than a decade. Colin Murdoch
Speaker 8: is the chief business officer of Google Deep Mind, and
Speaker 8: he's here at Collision it joins us.
Speaker 7: Now, Colin, thanks very much for joining us.
Speaker 2: Hey you wilcome. It's fantastic to be here.
Speaker 1: In fact, great a being Canada in Toronso, my first
Speaker 1: time to Toronto.
Speaker 8: Well it's a huge gathering for a city like Toronto
Speaker 8: to have thirty six thousand people come here. And as
Speaker 8: Ed was alluding to, the focus is AI AI AI.
Speaker 8: When you come to an event like this, what's the
Speaker 8: message that you're trying to bring to the table.
Speaker 1: Well, you know, I think it is all about AI.
Speaker 1: In the last six to twelve months, I think the
Speaker 1: real world has really working out with the potential, the
Speaker 1: potential for huge impact in the world. So the message
Speaker 1: I'm trying to get out there is that I think
Speaker 1: AI can have huge impact on some of the society's
Speaker 1: biggest challenges.
Speaker 8: Maybe explain that in a greater degree because the Deep
Speaker 8: Mind team is working on the research possibility we tease
Speaker 8: before the break, whether it's dealing with climate change or cancer.
Speaker 2: How So that is a great example.
Speaker 1: So let's take climate change, a huge issue for society.
Speaker 1: What I think AI can have a huge benefit. One
Speaker 1: example is we're using AIS can take weather much more
Speaker 1: accurate weather traditions to help communities and companies around the
Speaker 1: world adapt to it increasingly extreme weather and the devastating
Speaker 1: impact that can have. Another example actually is our digital society.
Speaker 1: The infrastructure underpins that today that requires huge numbers of
Speaker 1: computers and data centers to work, and left of their
Speaker 1: own devices done, they get extremely hot, very hot, and
Speaker 1: so as a large amount of energy that goes into
Speaker 1: keep them in the cool and we've been able to
Speaker 1: save forty percent of energy using AI to keep those
Speaker 1: data centers up on running. That's a really fantastic example.
Speaker 1: I can talk about new confusion as well. If you
Speaker 1: want to a nuclear fusion the power the powers are
Speaker 1: stars us a greener and cleaner source of energy, and
Speaker 1: we're now using AI to control the plasma inside these
Speaker 1: nuclear fusion reactors to help bring forward the products of
Speaker 1: nuclear fusion.
Speaker 2: If we can do that, then we've.
Speaker 1: Almost got a limitless source of energy, which I think
Speaker 1: will have a profound impact.
Speaker 8: On so sets Deep Mind is for those who were
Speaker 8: curious about Google's curiosity on AI. We've known that for
Speaker 8: a long time. I mentioned but going back to two
Speaker 8: thousand and ten. But because Alphabet has become a AI
Speaker 8: first company. Sometimes there is some confusion about what Google
Speaker 8: deep Mind relationship is to the parent company.
Speaker 7: How does that work when you're focused on research?
Speaker 8: I mean, why is it beneficial to have this research
Speaker 8: arm of the company.
Speaker 1: So our particular focus in Google deemlind is staying at
Speaker 1: the forefront of AI research and then translating that into
Speaker 1: the products across the alphabet gury and it's really valuables
Speaker 1: to gather together a like minded people so you can
Speaker 1: stay at the forefront. It's costing these folks together that
Speaker 1: allows us to stay at the full front of research
Speaker 1: and be able to develop this research which we can
Speaker 1: then put into products like in climate change, but also
Speaker 1: putting into YouTube and the healthcare examples or the health
Speaker 1: examples you mentioned data as well as another correct part.
Speaker 8: So you would be in a good position to understand
Speaker 8: the opportunities and the risks of fast changing technology. I
Speaker 8: think one of the biggest questions for your parent company
Speaker 8: or any big.
Speaker 7: Technology company betting on AA right now is are we
Speaker 7: moving too quickly?
Speaker 8: What do you think about the speed of adoption in
Speaker 8: AI today? Considering the deep mine's been thinking about this
Speaker 8: for more than a decade.
Speaker 2: While zeeming out.
Speaker 1: You're absolutely right, it's incredibly important that we pawn a responsivey.
Speaker 1: We tite careful steps as we developing mistology. It's an
Speaker 1: extremely powerful technology, so we have to take an exceptional caun.
Speaker 2: So we've been thinking about this from.
Speaker 1: The beginning, even from the beginning of DEMI report. It
Speaker 1: pawning responsively. We have to make sure that there's we
Speaker 1: do our we're taking the right mitigation steps, we're getting
Speaker 1: the right reviews, and we're involving.
Speaker 2: The right people every step of the way.
Speaker 8: On the regulatory front, because that's another big issue and
Speaker 8: it has been this week. We actually just spoke to
Speaker 8: the Innovation Minister here in Canada who has legislation on
Speaker 8: the table to try to at least have some regulation
Speaker 8: around AI.
Speaker 7: And I wonder how you think about the.
Speaker 8: Right regulation or working with different governments on regulation.
Speaker 1: This is aursox up pick. We're spending a lot of
Speaker 1: time working on thinking about across the glibe.
Speaker 2: Actually, we want to make sure we're sharing our insights
Speaker 2: so we can really.
Speaker 1: Help regulators think about the most effects of regulation.
Speaker 2: And by that I mean regulation that I think.
Speaker 1: Allows innovation allows these amazing great fears, but importantly uside
Speaker 1: mitigates the potential.
Speaker 2: Racis the really important talk.
Speaker 7: So do you feel then, because you're working on.
Speaker 8: Some very profound potential change for society, then sometimes we
Speaker 8: get caught up in the what ifs because they'll seem
Speaker 8: pretty worrisome as well.
Speaker 1: Yeah, you know, it is really important to make sure
Speaker 1: we are addressing the risks and making sure we're building
Speaker 1: a positive future for everyone. How don't we have to remember?
Speaker 1: But it's to a point that in y end, this
Speaker 1: is an incredibly powerful tendrigy I think is going to
Speaker 1: do an immense good for society. I'm not going to
Speaker 1: be part of them buy as well. We can't lose that.
Speaker 1: In the discussion stuss important.
Speaker 8: So you mentioned that the research you do can ultimately
Speaker 8: not just be shared with partners and governments, but can
Speaker 8: be implemented into the different products that the parent company
Speaker 8: is focused on.
Speaker 7: Right now, how does that work? What's the time for?
Speaker 8: When do you know that the research you've done is
Speaker 8: really worth passing on and sharing with the rest of
Speaker 8: the team and ultimately might be something consumers or companies conceived.
Speaker 1: Well, let me give you an example of health, which
Speaker 1: I think is an incredible example proteins and the building
Speaker 1: blocks of us that will keeping you and I working
Speaker 1: right now. And we've developed some technology that understands proteins
Speaker 1: at a much deeper level, which has been used by
Speaker 1: rains are amazing companies and organizations. I think there's actually
Speaker 1: a group here at the University of Toronto in fact,
Speaker 1: who've been able to use this technogy we call it
Speaker 1: Alpha fold to identify a target for a drug against
Speaker 1: liver cancer.
Speaker 2: And we're leading forms of liver cancer.
Speaker 1: That's an amazing example of how we've taken AI that
Speaker 1: was kind of being developed in the lab and we've
Speaker 1: brought it and we've worked with a partner here.
Speaker 2: In Toronto to do something which is really profound and powerful.
Speaker 7: And are you finding talent here as well for your team?
Speaker 1: We are based here in Toronto, actually Anna Montreal, and
Speaker 1: you're on a great team members here in Canada and
Speaker 1: I love I love the country.
Speaker 7: All right, Oh, thanks very much for them.
Speaker 8: We're an actually business officer of Google Deep Mind and
Speaker 8: I'll send it back.
Speaker 4: To you in the studio.
Speaker 3: Yeah, fascinating AI developed in the lab and then taken
Speaker 3: out to commercialize with partners. Colin Murdock, Google Deep Mind
Speaker 3: chief business officer, and of course thenn's John Erlikman out
Speaker 3: there in Toronto. Thanks to you both, time for talking tech.
Speaker 3: First up, Samsung amping up its chip foundry business by
Speaker 3: advancing its manufacturing techniques. The South Korean company said it
Speaker 3: we'll introduce a two nanometer production for mobile phone parts
Speaker 3: by twenty twenty five and expand its applications. Plus Microsoft's
Speaker 3: acquisition of Activision Blizzard could deliver a blow to Sony's
Speaker 3: PlayStation gamers. That's according to a Sony executive testimony in
Speaker 3: federal court, where they said the deal would give PlayStation
Speaker 3: gamers a degraded experience. The case represents a major test
Speaker 3: for the FTC's ability to block big tech deals and
Speaker 3: bankrupt cryptocurrency exchange FTX has abruptly stopped the sale of
Speaker 3: one of its most sought after assets, a stake in
Speaker 3: the AI startup Anthropic. The wholt came after several months
Speaker 3: during which multiple potential buyers assessed private information about the
Speaker 3: Anthropic steak. Let's get more on this story and bring
Speaker 3: in Bloomberg's ut Yang out in New York. What are
Speaker 3: the full picture of the details, UTI, So.
Speaker 9: As we know ever, since FTX filed for bankruptcy last year.
Speaker 9: The new leadership of FTX has one main goal, which
Speaker 9: is to recover as much value as possible for creditors,
Speaker 9: and there are multiple ways of achieving that, one of
Speaker 9: which is to assal And we know that FTX bankers
Speaker 9: had earlier started a process to sell FTX one of
Speaker 9: the most biggest investment portfolio, which is a stake internally
Speaker 9: valued at five hundred million dollars by FTX Anthwopic, which
Speaker 9: is one of now the hardest AI startups, So we
Speaker 9: know that the process had begun earlier, but then at
Speaker 9: some point this month the bankers decided to abruptly stop
Speaker 9: the process. And there's no expantanation given, But then we
Speaker 9: know that every thing that they do is in the
Speaker 9: over goal of trying to maximize value for creditors. And
Speaker 9: at the backdrop of that, the the valuation for a
Speaker 9: lot of AI startup has increased this year as AI
Speaker 9: and chap GPT become more popular.
Speaker 3: So usually a pretty reasonable question is why a crypto
Speaker 3: exchange would invest money in an AI startup in the
Speaker 3: first place.
Speaker 9: That's a great question if you look at the portfolio
Speaker 9: that Sam backman Free has built up before his firm collapse.
Speaker 9: They actually invested in a variety of startups across different sectors.
Speaker 9: We reported that mining is a sector that they had
Speaker 9: that big in, and then AI is another sector that
Speaker 9: they have also made multiple stakes. And of course they
Speaker 9: also invested in plenty of cryptal and blockchain startups. But
Speaker 9: I think the one asset that has become more popular
Speaker 9: and sought after now is really their stake in AI.
Speaker 3: We had Amy wu On, formerly the head of FTX
Speaker 3: Adventures quite recently. She's now at Menlo focused more on
Speaker 3: the consumer and gaming side, but it reminded us that
Speaker 3: FTX was deploying capital investing in technologies from a bigger
Speaker 3: picture perspective with anthropic what do we think is going
Speaker 3: to happen next? I mean, they've put this on hold,
Speaker 3: but is the long term goal to still divest or
Speaker 3: sell off.
Speaker 9: The steak, So that's yet to be seen. We note
Speaker 9: that FTX has also been looking into potentially restarting the
Speaker 9: international exchange, so there are multiple moving parts here, and
Speaker 9: we've reported that there are parties that are interested in
Speaker 9: beating for a potential restart of the FTX exchange. So
Speaker 9: going back to antheropic steak. I don't think the story
Speaker 9: ends here, and I'm sure there will be more actions
Speaker 9: on how to deal with that particular steak.
Speaker 3: Bloombas Yang will keep us up to date with the
Speaker 3: latest Bloomberg reporting. Welcome back to Bloomberg Technology, Ed Ludlow
Speaker 3: here in San Francisco's Check the markets Quickly, Technology is
Speaker 3: a part of the story, and as that one hundred
Speaker 3: modestly higher two tens and one percent some outperformance. We
Speaker 3: had all the great leaders of world central banks in
Speaker 3: one place. But kind of the main takeaway j pow
Speaker 3: fed chair saying that actually a recession in the United
Speaker 3: States is one of the least likely scenarios and that
Speaker 3: is pushing tech higher some underperformance zone chipstocks.
Speaker 4: We talked about this earlier in Bloomberg Technology.
Speaker 3: Right the Wall Street, your journal reports that the US
Speaker 3: is going to tighten restrictions on the export of chips
Speaker 3: to China, that impacting. In video, one of the names
Speaker 3: moving to the downside was soft by seven tens percent
Speaker 3: on the socks and a quick check on bitcoin, one
Speaker 3: of our favorite risk assets. We are now sort of
Speaker 3: heading lower one percent lower on bitcoin thirty three hundred
Speaker 3: US dollars per token we had since buoyancy in recent
Speaker 3: days tied to the momentum around ETFs A filing from
Speaker 3: black Rock or reported filing from Fidelity. Now, if there
Speaker 3: is one name in the technology sector that we are
Speaker 3: monitoring very closely, it is Joby Aviation, maker of Flying Taxis.
Speaker 4: We're up forty percent right now.
Speaker 3: We are very close to the biggest gain on record,
Speaker 3: depending on where we close. We need to find out why.
Speaker 3: So joining us for an exclusive interview is Joby's CEO,
Speaker 3: Joe Ben Bevett, down in Central Cow Marina, California. Joe Ben,
Speaker 3: the news you've received FAA certification to test air test fly. Basically,
Speaker 3: what are units and production units flying off the production line?
Speaker 3: How big a moment is this for your company?
Speaker 10: First, thank you so much, good morning, wonderful to be
Speaker 10: with you. This is a huge moment. The Jobe team
Speaker 10: has been working really, really hard, and we've been flying
Speaker 10: prototypes of our aircraft since twenty seventeen, full scale prototypes.
Speaker 10: But this is the first time that an aircraft that's
Speaker 10: come off our pilot manufacturing line has received certification from
Speaker 10: the FA to begin flight test.
Speaker 4: And this is a pivotal moment.
Speaker 10: As you can see, I'm standing here at our pilot
Speaker 10: manufacturing line, and not only do we have the first
Speaker 10: one coming off the line, but we've gotten multiple coming
Speaker 10: along behind us.
Speaker 3: Okay, so give me some numbers. How many do you
Speaker 3: think you will build in the remainder of twenty twenty
Speaker 3: three and how many in twenty twenty four.
Speaker 10: So this we're still in the carawl phase of this journey.
Speaker 10: This pilot manufacturing line here has the potential to build
Speaker 10: a few tens of aircraft per year. So this is
Speaker 10: just a first step of a really exciting journey. Another
Speaker 10: piece that we're announcing today is that President and CEO
Speaker 10: of Toyda North America Tedagawa, is joining the Jobe Board.
Speaker 10: And this is Toyda joined as our largest external investor
Speaker 10: in twenty nineteen, and they've been continuing to lean in.
Speaker 10: We've got Toyota team members both working shoulder to shoulder
Speaker 10: with our team here in California, as well as team
Speaker 10: members in Japan from Toyota's Flying Mobility team that are
Speaker 10: really leaning in to this new sector. Toyota North America
Speaker 10: produced one point seven million cars last year, and you know,
Speaker 10: generated more than one hundred billion dollars in revenue. It
Speaker 10: is just amazing to have O Goo us On joining
Speaker 10: our board and he's actually here in Marina with us
Speaker 10: today for our rollout of this aircraft outline.
Speaker 3: The curve for me of this of this production line,
Speaker 3: we're calling it a pilot line. When does I come
Speaker 3: sort of serial production, you know, saleable units beyond your
Speaker 3: existing deal with the military, which we'll get to in
Speaker 3: a moment.
Speaker 10: Yeah. So we are working with states across the country
Speaker 10: UH to put UH and UH support packages together and
Speaker 10: we're going to be selecting a site for our phase
Speaker 10: one manufacturing, which will give us the capacity to build
Speaker 10: hundreds of aircraft per year UH in in the next
Speaker 10: few months, and so that will will mark a really
Speaker 10: important UH step as we scale. But even before we
Speaker 10: can go into volume production, we need certification with the FA.
Speaker 10: And yesterday we had eighty members of from both the DOT,
Speaker 10: the DOE, the NASA and the FA that came to
Speaker 10: visit us here in Marina to see our the progress
Speaker 10: that we're making on our manufacturing facility and also UH
Speaker 10: to they're really leaning in UH. Two weeks ago, I
Speaker 10: was I was with global regulators UH in Cologne, Germany,
Speaker 10: with the YASA, with the FA with folks the JCAB
Speaker 10: in Japan, and the CIA and the UK. Regulators from
Speaker 10: around the world that are really leaning in on.
Speaker 4: This new technology.
Speaker 3: Joe Ben, every time an executive like you comes in
Speaker 3: the show, I go to Twitter and I say, jobin's
Speaker 3: coming on the show, what would you ask? And lots
Speaker 3: of people have a very reasonable question for the average
Speaker 3: Twitter user, when will they be able to get into
Speaker 3: a job aircraft that has nothing to do with the
Speaker 3: military that kind of meets your goals of a broader
Speaker 3: flying taxi service.
Speaker 10: So our target is to launch our commercial service here
Speaker 10: in the US in twenty twenty five. We have an
Speaker 10: amazing partnership with the team at Delta Airlines and that
Speaker 10: recently I've had the opportunity to go to JFK, LaGuardia
Speaker 10: and LAX where Delta has invested more than ten billion
Speaker 10: dollars in terminals. So look with the Delta team at
Speaker 10: where we're going to cite the takeoff and landing locations
Speaker 10: for these aircraft to deliver the really spectacular customer experience
Speaker 10: that we want to deliver to Delta customers where you
Speaker 10: can step off of your Joebe Air taxi and onto
Speaker 10: your Delta flight as seamlessly as possible.
Speaker 3: Yes, Joe Ben, the stocks up forty What do you
Speaker 3: make of that?
Speaker 10: Stocks go up, stocks go down. The team here at
Speaker 10: JOBY is lazer focused on is doing what we do best,
Speaker 10: which is delivering. That's exactly what we're doing today. We
Speaker 10: are rolling our first aircraft off the manufacturing line. We've
Speaker 10: got the certificate verywarreiness from the FA to begin flight
Speaker 10: testing this aircraft and we're super excited about taking this
Speaker 10: aircraft to Edwards Air Force Base in California to begin
Speaker 10: testing with the DoD And that is just spectacular opportunity
Speaker 10: for us to begin building the operational muscle and begin
Speaker 10: moving goods and people around military air basis before we
Speaker 10: have our FA certification.
Speaker 3: So the deliveries to the military the Air Force starting
Speaker 3: twenty twenty four. A lot of questions I get for
Speaker 3: you are about business model. You think about New York
Speaker 3: City as an example, you can take a helicopter ride
Speaker 3: for around two hundred dollars. How are you going to
Speaker 3: price a service in the future. How do you get
Speaker 3: competitive with basically what already exists, which is a helicopter
Speaker 3: with the pilot.
Speaker 10: Yeah. So our goal is to actually be competitive with
Speaker 10: the cost of ground transportation, but to deliver you to
Speaker 10: your destination multiple times faster, five times faster, and with
Speaker 10: a dramatically better experience. Being able to see these beautiful
Speaker 10: cities like New York from the area is an amazing
Speaker 10: way to start your day.
Speaker 4: Job.
Speaker 3: Aviation Founder CEO joe Ven Bevitt, thank you so much
Speaker 3: for your time. That stock up almost thought for percent
Speaker 3: in this morning session following that news.
Speaker 4: Thank you, Thank you so much. Wonderful to see you
Speaker 4: now coming out.
Speaker 3: We're talking about a new product using AI to travel,
Speaker 3: this time with Priceline CEO Bret Keller.
Speaker 4: This is Bloomberg Technology.
Speaker 3: Price Line unveiling a new product using AI to help
Speaker 3: make summer travel plans easier. The online travel agency launching
Speaker 3: Trip Intelligence, a suite with over forty new booking tools,
Speaker 3: one of which includes Penny price Lines proprietary genitive AI chatbot.
Speaker 3: Let's bring in Priceline CEO Bret Keller for more. Brett,
Speaker 3: tell me about Penny. What's it like using Penny?
Speaker 2: Sure?
Speaker 11: Well, Penny is a very specific and trained chat model
Speaker 11: based on the hotel booking experience. So as you come
Speaker 11: into price line and you begin sharping for a hotel,
Speaker 11: we have built a tool which will help you to
Speaker 11: answer all the types of questions you might have about
Speaker 11: your booking experience. You know, if you want to know
Speaker 11: something about the hotel and what's nearby, right if you're
Speaker 11: looking for a walking path or running path, vegan food.
Speaker 11: It can answer many of the questions that historically have
Speaker 11: been difficult to track down quickly and easily, and so
Speaker 11: now you can do that right within the booking experience
Speaker 11: real time as you're booking your hotel. It can also
Speaker 11: answer questions about the room you're staying in, about the
Speaker 11: cancelation policies, many of the things that you would require
Speaker 11: a lot more research and due diligence to understand, and
Speaker 11: so this tool we believe will make it much easier
Speaker 11: for customers to come in and have a great booking
Speaker 11: experience to get the answers they need.
Speaker 3: We're showing images on the screen of how Penny works
Speaker 3: and the experience of using it. I guess the next
Speaker 3: question is why why did you feel you needed to
Speaker 3: do this?
Speaker 11: Well, you know, customers always have more and more questions
Speaker 11: about travel and things are become more complex.
Speaker 4: Take a trip overseas right.
Speaker 11: Consumers are more and more looking to travel to new locations,
Speaker 11: places they've never been before. They don't know anything about
Speaker 11: the area, they don't know anything about the hotel that
Speaker 11: they're staying in. And this gives a consumer much broader
Speaker 11: access to information real time to answer questions. And so
Speaker 11: that's the primary motivation is to give the consumer more
Speaker 11: intel on their stay and answer the questions that are
Speaker 11: specific and unique to them. If you're traveling with a family,
Speaker 11: that's a very different experience that you're looking for. Then
Speaker 11: if you're traveling for business or for some other purpose,
Speaker 11: and this just opens up the horizon of what we
Speaker 11: can tell you as a user. In addition, it will
Speaker 11: also help consumers book more easily, So within the chatbot
Speaker 11: itself you can actually finish the transaction. So when you're
Speaker 11: ready to book, we'll actually populate the forms right within
Speaker 11: the chat module. You can quickly add your information and
Speaker 11: books securely using our tokenized payment mechanism to get you
Speaker 11: in and out quickly with your transaction.
Speaker 3: Yeah, Brad, what kind of advantage to you feel this
Speaker 3: gives you? It is right around the corner from summer,
Speaker 3: but a challenging macro environment. You think about Airbnb and
Speaker 3: what they're doing to improve the UX experience on their platform,
Speaker 3: both app and website, the integration of AI. It's all
Speaker 3: about winning eyeballs and converting them into bookings. Do you
Speaker 3: think that Penny is going to help you do that?
Speaker 11: We do think it will help us to do that,
Speaker 11: along with all of the other features we've just release
Speaker 11: and many more to come on our new tech platform.
Speaker 11: We've been in the hotel accommodation's business for twenty five years.
Speaker 11: We invented many of the innovative ways for people to
Speaker 11: save money on this platform. This new technology laid on
Speaker 11: top of that access to really great pricing now just
Speaker 11: makes it, I think, more compelling, especially in the hotel
Speaker 11: accommodation space, which is one of our specialties.
Speaker 3: Price Line CEO Brett Keller talking about Penny, the new
Speaker 3: generative AI tool.
Speaker 4: Thank you so much for your time.
Speaker 3: Microsoft CEO sat in Adela during court today to defend
Speaker 3: the company's proposed sixty nine billion dollar takeover of Activision
Speaker 3: Blizzard against an attempt by federal regulators to block the deal.
Speaker 3: Bloomberg's Malathey Nayak joins us from the courtroom.
Speaker 4: Malathi, what's the latest?
Speaker 12: So it is it's a big deal for Microsoft. They've
Speaker 12: brought in Activision CEO Bobby Kotik, who was just at
Speaker 12: the stand a few minutes ago when I stepped out
Speaker 12: of the courtroom and set in Adella will be testifying
Speaker 12: in the afternoon. So they've brought their executives to come
Speaker 12: out here and defend this deal and try to push
Speaker 12: back against the FTC's argument that the deal isn't good
Speaker 12: for a competition in the console gaming market.
Speaker 4: How key is this case?
Speaker 3: Is this a in everything or nothing situation where if
Speaker 3: the companies can't convince the.
Speaker 4: Court, the FTC will be able to block the deal.
Speaker 12: So the FTC currently is seeking an injunction that would
Speaker 12: block the deal while it's legal challenge to the deal
Speaker 12: is spending. So this would be sort of the first step,
Speaker 12: and this would actually get in the way of the
Speaker 12: July eighteenth closure deadline that the deal has. So Microsoft
Speaker 12: really wants to get this done as soon as possible.
Speaker 12: They need to win this first hurdle, which basically would
Speaker 12: allow them to at least go ahead and close the
Speaker 12: deal if possible. Next month. So right now they're trying
Speaker 12: to push back against an injunction or a ruling from
Speaker 12: the judge that would just put the deal on hold,
Speaker 12: just pause it while the FTC's challenge is pending.
Speaker 3: Bloomberg's Malasti Nayak, thank you so much from the courtroom
Speaker 3: in San Francisco.
Speaker 4: Let's stick with gaming video games.
Speaker 3: Keep a conversation going with a wider look at the
Speaker 3: e sports landscape with Evil Genius is CEO Nicola point Jamison,
Speaker 3: who's joining me from New York. Everyone that watches Boomberg
Speaker 3: Technology knows we go big on gaming, but esports is
Speaker 3: at a really interesting moment. Talk to me about how
Speaker 3: you see your industry right now, the health of it.
Speaker 7: Yes, thanks for having me.
Speaker 13: Esports is at a really interesting intersection right now. As
Speaker 13: we've always been a digital product that bridges and straddles
Speaker 13: sports and entertainment, but now with more eyes on advanced
Speaker 13: technologies like AI and sports analytics and all the deriatives
Speaker 13: of such, we're really seeing the professionalization as well as
Speaker 13: the awareness of esports as a product at a rate
Speaker 13: that hasn't been seen before. So the growth and headwinds
Speaker 13: that we're experiencing especially post pandemic, where gaming and esports
Speaker 13: events and live events in person are becoming more and
Speaker 13: more commonplace. It's an exciting time to be part of
Speaker 13: the community.
Speaker 3: It's also interesting to talk about the content side of
Speaker 3: this story. And when you think about evil geniuses, you guys,
Speaker 3: you think about YouTube or Twitch, A lot of what
Speaker 3: you're doing is going out there for free. So how
Speaker 3: are you going to make some money and take that
Speaker 3: free content and turn it into merchandising or are the
Speaker 3: ways of building revenue streams?
Speaker 13: Yes, this is the existential rub of esports organizations like ourselves,
Speaker 13: where we are content machines, billions of minutes a year
Speaker 13: of produced content, whether it's in game, athletics, competition moments too,
Speaker 13: behind the scenes social engagement. And we know we have
Speaker 13: the eyes and hearts of especially gen Z and Gen
Speaker 13: Alpha audiences. EG on its own can eclipse over twenty
Speaker 13: million views on our third party platforms itself. But how
Speaker 13: we find and face the media rights, ownership and distribution
Speaker 13: that is not as professionalized as you see in traditional
Speaker 13: sports bridging with that entertainment of Okay, there's YouTube and Twitch.
Speaker 13: What's interesting right now is that we're seeing that traditional
Speaker 13: linear media, whether it's movies and cinemas, in person events.
Speaker 13: These moments where other people who are hungry for content
Speaker 13: for that audience are looking and creating new ways to
Speaker 13: bring in that gaming community, which has trickle down effects
Speaker 13: on revenue. A very public example that just went out
Speaker 13: right xQc, a big gaming streamer signing with kick, a
Speaker 13: Twitch competitor, for one hundred million dollars two year deal
Speaker 13: that's bigger than many traditional sports athletes, writes.
Speaker 7: To a team.
Speaker 13: And so if you continue to look at how brands
Speaker 13: are aware that the gaming content and community is valuable
Speaker 13: and their purchasing power is increasing. We're hoping the competition
Speaker 13: and thus the media rights values will continue to increase
Speaker 13: as time goes on.
Speaker 3: We're just showing some interesting data about your userbase, your
Speaker 3: audience sixty four percent aged eighteen to thirty four. So
Speaker 3: take that demographic. Who are you competing with other players
Speaker 3: in the space or other forms of content? Like are
Speaker 3: you also competing directly with Twitch?
Speaker 13: As an example, I wouldn't say we're direct competitors of
Speaker 13: a Twitch or you Tube because we leverage those platforms
Speaker 13: to engage and reach in our community. Esports organizations in particular,
Speaker 13: we're more of the platform. Think of us if you're
Speaker 13: very unfamiliar as the actual athletic team that creates the
Speaker 13: competitive moments. But the hub and spoke model of our community,
Speaker 13: including media distribution like Twitch, helps us. But we do
Speaker 13: have to still diversify and figure out how we stand
Speaker 13: apart from not only are their competitors in the space
Speaker 13: of how is our content and thus our audience differentiated,
Speaker 13: but then we also compete against traditional sports and media,
Speaker 13: traditional pop culture, music and fashion. Gen Z has spoken
Speaker 13: and gaming is a staple of their culture and continuing
Speaker 13: to create that evergreen understood moment for a brand and
Speaker 13: capital allocators that that is also true is important for us.
Speaker 3: Nicole, how difficult is your day job right now? Think
Speaker 3: about the news in April about the roster changes. I
Speaker 3: think you guys have done a few rounds of layoffs
Speaker 3: this year as well.
Speaker 4: How's running that business?
Speaker 13: Yes, sports continuing from the sports monetization model, transforming into
Speaker 13: more of that entertainment. We just like many other businesses
Speaker 13: in tech and advertising, the macroeconomic climate earlier this year
Speaker 13: was hard. As traditional sponsorship sales as much of our
Speaker 13: current revenue stream. It required us to be really judicious
Speaker 13: and pivot on our feet quickly around what is valuable inventory,
Speaker 13: what is the valuable market rate of talent? And much
Speaker 13: of what we had to do was course correct to
Speaker 13: the macroeconomic market. The good news is, though, with these
Speaker 13: adjustments and reductions, we've also been able to find really
Speaker 13: good headwinds and really double down on what makes our
Speaker 13: brand differentiated and strong in the space, as you shared
Speaker 13: with the stats earlier, eg as a leader in gaming,
Speaker 13: around inclusion with women, with the LGBTQ community, with the
Speaker 13: bipop community, and those values and affinities despite the macroeconomic
Speaker 13: sponsorship challenges, still resonate with advertisers and brands to engage
Speaker 13: with the gen Z community through our platform and what
Speaker 13: we have. So I'm grateful to an amazing team behind
Speaker 13: me to help us stay robust and continue through many
Speaker 13: technology and economic changes.
Speaker 3: Nicole quickly, what is the one thing to your mind
Speaker 3: that's going to put some energy back.
Speaker 4: Into esports, that's going to put sorry some energy, some
Speaker 4: momentum back into this industry.
Speaker 7: Back into the industry.
Speaker 13: I would say there's so much energy in esports right
Speaker 13: now when you look at TikTok, where forty billion views
Speaker 13: of gaming related content month over month, consistently in person
Speaker 13: arenas selling out for events. Last year, League of Legends
Speaker 13: had a North American road show culminating and Chase Center
Speaker 13: in San Francisco selling out. I think what will continue
Speaker 13: to drive energy is more multi generational audiences being aware
Speaker 13: of this is the power of gaming, and gaming is
Speaker 13: here to stay.
Speaker 3: Evil genius is CEO Nicole the point Jamison, So good
Speaker 3: to catch up, Thank you, thank you for your time.
Speaker 4: All right, So that.
Speaker 3: Does it to this edition of Bloomberg Technology. A lot
Speaker 3: to recap. Gosh, it's been a bus week so far.
Speaker 3: Don't forget the podcast. Then Apple, Spotify, iHeart, and of
Speaker 3: course on all of the Bloomberg platforms. Some really big
Speaker 3: moves discussed during this show. Keep an eye on Joby
Speaker 3: on track potentially for its biggest jump on record, all
Speaker 3: things flying Taxi, a story we're going to keep following
Speaker 3: this week is, of course, what's happening in the chip sector.
Speaker 3: But so much more still to come from San Francisco.
Speaker 3: This is Bloomberg Technology