WEBVTT - OpenAI's Developer Conference and Big Tech Earnings 0:00:01.480 --> 0:00:05.160 From the heart where Innovation, money and power Collie in 0:00:05.280 --> 0:00:06.760 Silicon Valley, NBN. 0:00:07.120 --> 0:00:10.560 This is Bloomberg Technology with Caroline Hyde. 0:00:10.200 --> 0:00:11.320 And edlud Love. 0:00:25.040 --> 0:00:27.440 Live from Bloomberg's World headquarters in New York. 0:00:27.440 --> 0:00:28.120 I'm Ed Ludlow. 0:00:28.160 --> 0:00:31.280 Caroline Hyde is off today. This is Bloomberg Technology. Coming 0:00:31.320 --> 0:00:34.040 up on the program. Open ai kicks off its first 0:00:34.080 --> 0:00:38.120 ever developers conference, with engineers and entrepreneurs gathering in downtown 0:00:38.200 --> 0:00:41.080 San Francisco. We'll break down what we expect from the event. 0:00:41.120 --> 0:00:43.239 Plus we'll push your head to earnings this week and 0:00:43.280 --> 0:00:46.240 get the macro take on big text results as companies 0:00:46.280 --> 0:00:50.360 deliver even bigger profits than Wall Street anticipated, will it last? 0:00:50.400 --> 0:00:53.200 And Apple is in search of a new growth engine 0:00:53.240 --> 0:00:56.440 after warning on a slower holiday season. Can the vision 0:00:56.560 --> 0:01:00.680 pro solve that problem we discussed at first? The maker 0:01:00.840 --> 0:01:04.120 chat Chat GPT sorry is about to still go through 0:01:04.280 --> 0:01:07.560 a kind of Silicon rally rite of passage. Today is 0:01:07.600 --> 0:01:12.400 OpenAI's first Developers conference in downtown San Francisco. Hundreds of 0:01:12.440 --> 0:01:15.880 software engineers and entrepreneurs gathering to hear about the best 0:01:16.000 --> 0:01:18.759 use of the company's tools and how they can build 0:01:18.920 --> 0:01:22.800 their own products with the underlying GBT technology. Who have 0:01:22.800 --> 0:01:25.560 we got on the ground. Bloomberg's Rachel Metz is at 0:01:25.600 --> 0:01:27.840 the developers conference set the scene for us. What is 0:01:27.880 --> 0:01:29.360 this event symbolized? 0:01:29.440 --> 0:01:33.839 Rachel, this event is a really big deal through open ai. 0:01:34.120 --> 0:01:36.800 It has to have a developer conference before. We've seen 0:01:36.880 --> 0:01:40.560 so many technology companies that are big and want to 0:01:40.560 --> 0:01:44.479 be larger create these events to get developers more involved 0:01:44.480 --> 0:01:49.880 with their products over time, like Apple and Meta and Microsoft, Amazon, 0:01:50.040 --> 0:01:52.120 and they do these events here after year, and they've 0:01:52.360 --> 0:01:54.440 in many cases become a really big deal for a 0:01:54.480 --> 0:01:57.440 company to telegraph what they want to share book with 0:01:57.560 --> 0:02:00.000 developers and eventually with consumers. 0:01:59.840 --> 0:02:02.840 We relaunched the Bloomberg Technology Show almost a year ago 0:02:02.920 --> 0:02:05.160 to the day, and it's almost a year ago to 0:02:05.200 --> 0:02:07.600 the day that the chat GPT has made public. It's 0:02:07.640 --> 0:02:10.600 more towards the end of November, but open Eyes just 0:02:10.680 --> 0:02:14.480 dominated basically the discussion at least around the work in 0:02:14.560 --> 0:02:17.760 generative AI and the foundation models that power them. How 0:02:17.800 --> 0:02:19.720 big is that lead right now? Do you think, Rachel, 0:02:19.800 --> 0:02:21.679 based on all the reporting you've done over the last 0:02:21.720 --> 0:02:23.320 twelve months. 0:02:23.800 --> 0:02:24.600 I think it's big. 0:02:24.639 --> 0:02:27.680 But there are a lot of companies that are really 0:02:27.919 --> 0:02:31.440 getting in there and creating their own models, coming up 0:02:31.480 --> 0:02:34.120 with their own tools of open source. There's also from 0:02:34.200 --> 0:02:36.560 large tech companies. A lot of people are really interested 0:02:36.600 --> 0:02:39.560 in this space, and it's going to be interesting to 0:02:39.639 --> 0:02:42.400 see both what open AI brings out so it can 0:02:42.440 --> 0:02:45.800 stay ahead, and also what happens in the months to come. 0:02:46.360 --> 0:02:48.640 So the one side of the AI story that we 0:02:48.720 --> 0:02:52.080 love is there's still a human side. There's who's who 0:02:52.200 --> 0:02:54.800 in the world of AI. We expect Sam Mountman of 0:02:54.840 --> 0:02:58.160 course to be on site, right Rachel absolutely. 0:02:58.240 --> 0:03:01.240 I think well, there's probably bunch of executives here. I 0:03:01.280 --> 0:03:03.360 haven't had time to wander around too much yet, but 0:03:03.720 --> 0:03:05.000 Sam's expected to be here. 0:03:05.600 --> 0:03:07.480 I believe Mira Murradi. 0:03:07.120 --> 0:03:08.160 Will probably be here. 0:03:08.320 --> 0:03:12.360 She's also a very important executive at the company, and 0:03:12.520 --> 0:03:14.679 probably a bunch of other people. I mean that it's 0:03:15.000 --> 0:03:17.560 a really interesting time for the company. I would guess 0:03:17.600 --> 0:03:19.320 that if you could be here, you'd probably want to 0:03:19.320 --> 0:03:19.639 be here. 0:03:19.919 --> 0:03:22.440 Boombos. Rachel Metz on the ground at the Open AIS 0:03:22.480 --> 0:03:25.280 Developers conference, and she will be reporting across all Bloindoe 0:03:25.280 --> 0:03:28.040 platforms throughout the day. Thank you so much. Another story 0:03:28.080 --> 0:03:31.680 we're watching, Elon Musk revealed his own artificial intelligence spot 0:03:31.720 --> 0:03:35.560 to challenge chat GPT over the weekend called grock. He 0:03:35.640 --> 0:03:39.400 claims the prototype is already superior to GPT three point 0:03:39.400 --> 0:03:43.520 five across several benchmarks. It's the first product of Musk's 0:03:43.720 --> 0:03:47.320 XAI company that is currently testing with a limited group 0:03:47.360 --> 0:03:49.320 of users in the US. But interestingly, you have to 0:03:49.320 --> 0:03:52.360 be an ex the company formerly known as Twitter Premium 0:03:52.360 --> 0:03:54.640 subscriber to get on that waitlist, something that I signed 0:03:54.720 --> 0:03:57.520 up for overnight. Let's stick with AI and bring in 0:03:57.680 --> 0:04:01.760 Mike Mason, he's Chief AI officer of global tech consultancy 0:04:02.120 --> 0:04:03.760 thought Works, and Mike I wanted to get you on 0:04:03.800 --> 0:04:07.400 the program because this is a moment where we can say, Wow, 0:04:07.480 --> 0:04:10.080 what are twelve months it's been? You heard me frame 0:04:10.120 --> 0:04:13.000 it to Rachel in terms of what open ai did 0:04:13.040 --> 0:04:16.000 first in November of twenty twenty two, do you see 0:04:16.040 --> 0:04:19.000 them as having, particularly in the software space right a 0:04:19.040 --> 0:04:21.119 clear lead in the field of generative AI. 0:04:22.640 --> 0:04:26.120 I think they certainly do have a lead. They were 0:04:26.400 --> 0:04:29.320 first out of the gate with GPT three point five, 0:04:29.960 --> 0:04:32.520 then four point zero, and just a month or so 0:04:32.600 --> 0:04:36.520 ago they added GPT four V, which is adding vision 0:04:36.880 --> 0:04:41.120 to their product. They're also scaling very strongly from a 0:04:41.200 --> 0:04:44.480 revenue perspective, but I think they are not the only 0:04:44.520 --> 0:04:51.320 game in town. Certainly we're seeing features from Microsoft, Google, Amazon, 0:04:51.480 --> 0:04:54.240 and all of the cloud players are really adding AI 0:04:54.720 --> 0:04:57.280 into their platforms. I think AI is going to be 0:04:57.320 --> 0:05:02.080 the next battleground for those large companies. It is almost 0:05:02.120 --> 0:05:04.440 a bewildering array of options. 0:05:04.680 --> 0:05:05.400 So the thought works. 0:05:05.440 --> 0:05:09.080 As a technology consulting firm, we advise our clients on 0:05:09.360 --> 0:05:12.640 how they can build technology to solve their biggest challenges, 0:05:13.400 --> 0:05:16.880 and AI is certainly in that list. We worked with 0:05:16.920 --> 0:05:20.680 one client where we were helping them with their AI strategy, 0:05:21.000 --> 0:05:23.960 and before we'd even got started, they showed us two 0:05:24.080 --> 0:05:27.760 hundred and seventy ideas for how GENAI might improve their 0:05:28.080 --> 0:05:31.320 business and create value for them. And so you know, 0:05:31.400 --> 0:05:35.159 clearly having ideas is not the difficult bit. It's figuring 0:05:35.200 --> 0:05:37.599 out which of those ideas are really going to create 0:05:37.960 --> 0:05:41.279 business value for you, and then doing a proof of 0:05:41.360 --> 0:05:44.880 value and then getting that into production. Something that we're 0:05:44.920 --> 0:05:47.880 seeing a lot happening is that companies are able to 0:05:47.960 --> 0:05:50.560 do a proof of concept, but they don't really have 0:05:51.040 --> 0:05:54.039 the machinery in place to take that through into production 0:05:54.120 --> 0:05:57.040 at scale delivering value. And so that's an area where 0:05:57.040 --> 0:05:57.560 we can help. 0:05:57.640 --> 0:05:59.599 Well, a company having two hundred and seventy ideas, I 0:05:59.600 --> 0:06:02.320 don't know that there are two hundred and seventy large 0:06:02.360 --> 0:06:04.640 language models on the market to choose from. Maybe there 0:06:04.640 --> 0:06:06.719 are that many. I think we're talking about those with 0:06:06.839 --> 0:06:09.599 sort of tens of billions of parameters, you know, from 0:06:09.880 --> 0:06:13.359 GPT three point five LAMA to the work then thropic inflection. 0:06:13.440 --> 0:06:16.120 AI are doing things like that. Today is the Open 0:06:16.160 --> 0:06:19.480 AI dev conference. And when a company holds an event 0:06:19.640 --> 0:06:21.839 like this, Mike, what is it you want to hear 0:06:21.880 --> 0:06:22.320 from them? 0:06:23.720 --> 0:06:27.919 Well, so I would expect to hear more about model features, 0:06:28.120 --> 0:06:32.200 So new features that they're introducing, maybe more vision, maybe 0:06:32.320 --> 0:06:37.479 some cogeneration. Maybe also multimodal models, so that's a model 0:06:37.520 --> 0:06:41.359 that can work across text and speech and image and 0:06:41.400 --> 0:06:45.159 possibly video, both for input and output, and can kind 0:06:45.200 --> 0:06:49.920 of fluidly move between those modes of interaction. I'd expect 0:06:49.920 --> 0:06:53.880 to see greater clarity around costs of using these models. 0:06:53.920 --> 0:06:56.520 One of the problems with generative AI is that the 0:06:56.520 --> 0:07:00.720 costs are unpredictable, and that can be a serious barrier 0:07:00.800 --> 0:07:03.839 to getting these things into production and creating value from them. 0:07:04.320 --> 0:07:09.800 I might also expect to see some words around safety features. Safety, 0:07:09.880 --> 0:07:13.960 of course, is a huge factor in AI. We put 0:07:13.960 --> 0:07:16.680 out some consumer research a couple of weeks ago where 0:07:16.680 --> 0:07:20.200 we interviewed ten thousand consumers about their attitudes towards AI, 0:07:20.560 --> 0:07:22.560 and we found that more than ninety percent of people 0:07:23.240 --> 0:07:28.400 had concerns about data privacy, their data usage, and whether 0:07:28.480 --> 0:07:32.600 companies are being responsible and transparent with AI. And actually, 0:07:32.680 --> 0:07:36.120 I really think there's something there. You know, taking a 0:07:36.160 --> 0:07:39.160 privacy forward stance can be a brand enhancing move. 0:07:39.400 --> 0:07:42.160 We're just showing on the screen, you know that the 0:07:42.160 --> 0:07:45.320 cloud provider perspective, because ultimately, if you're a company that 0:07:45.320 --> 0:07:47.960 wants to invest in AI, what we're talking about here 0:07:48.040 --> 0:07:51.200 is compute and you mentioned the costs associated with that. 0:07:51.280 --> 0:07:54.880 I've reported that open ai will likely book a billion 0:07:54.960 --> 0:07:57.440 dollars of revenue this year, but there is a concern 0:07:57.520 --> 0:08:01.680 about the competitive pricing to bring in customers and then 0:08:01.720 --> 0:08:05.640 the long term profitability because crunching the data is proving expensive. 0:08:05.720 --> 0:08:09.600 How closely do you look at that, mic Well, I. 0:08:09.600 --> 0:08:11.720 Think it's difficult to look at it closely because those 0:08:11.720 --> 0:08:15.920 figures closely guarded secrets from those companies. But reading the 0:08:15.960 --> 0:08:18.920 tea leaves I would say that I don't think they 0:08:19.000 --> 0:08:22.240 really know whether they're pricing is where it needs to 0:08:22.280 --> 0:08:25.120 be to make the money. You've seen both Google and 0:08:25.240 --> 0:08:29.760 Microsoft with Duet and Office three six five add GENAI 0:08:29.880 --> 0:08:34.400 features to their productivity tool suites, and that's kind of 0:08:34.400 --> 0:08:37.720 in the thirty dollars per person per month zone. I 0:08:37.760 --> 0:08:39.600 don't think they actually know whether they're going to make 0:08:39.640 --> 0:08:41.679 money from that. It's something that's going to shake out 0:08:41.679 --> 0:08:45.560 in the long term. Rumors around chatch EPT five, of course, 0:08:46.120 --> 0:08:49.240 say the open AI is really focused on efficiency, and 0:08:49.280 --> 0:08:52.360 efficiency really means bringing down the cost to run that. 0:08:52.920 --> 0:08:56.680 I think another option that should not be overruled is 0:08:56.720 --> 0:09:01.240 to look at the open source world. There's amazing progress 0:09:01.600 --> 0:09:04.600 with models that are less big, smaller. You know, you 0:09:04.600 --> 0:09:06.920 can run them yourself, you can run them in house, 0:09:06.960 --> 0:09:09.560 and that's especially useful if you want to keep tight 0:09:09.679 --> 0:09:13.000 control over your data and not actually use a cloud 0:09:13.040 --> 0:09:14.160 provider for your AI. 0:09:14.640 --> 0:09:17.200 Well, the event is underwear in San Francisco in about 0:09:17.200 --> 0:09:19.160 an hour's time, so whether their rumors or not, we 0:09:19.200 --> 0:09:22.360 will get some more information later on in Monday's day. 0:09:22.440 --> 0:09:24.760 Foult Works Chief AI Officer Mike Mason, thank you so 0:09:24.880 --> 0:09:27.520 much now coming up here on Bloobow Technology. Earnings of 0:09:27.559 --> 0:09:29.679 the big tech companies are kind of about the way. 0:09:29.679 --> 0:09:31.240 We're going to take a deeper look at how the 0:09:31.280 --> 0:09:34.160 group delivered in the past quarter, what that spells for 0:09:34.200 --> 0:09:37.120 the sets going forward, big emphasis on profit. We're also 0:09:37.160 --> 0:09:40.559 taking a look at another Elon Musk company, Tesla. Reuter's 0:09:40.559 --> 0:09:44.440 reporting that Berlin and Gigaberlin will be home to this 0:09:44.559 --> 0:09:48.960 twenty five thousand euro next generation platform. That's around twenty 0:09:49.000 --> 0:09:51.480 seven thousand dollars. You know, I was speaking to sources 0:09:51.480 --> 0:09:54.160 throughout the day. The long term expectation was that it 0:09:54.160 --> 0:09:56.800 would be Shanghai that went first, but it looks like 0:09:56.840 --> 0:10:00.000 in the battle for affordable EBS that battleground, at least 0:10:00.120 --> 0:10:03.160 Tesla's perspective, and according to Reuter's reporting, is going to 0:10:03.200 --> 0:10:05.400 be done out of Berlin. The stockdown half of percent. 0:10:05.880 --> 0:10:09.400 Tesla did not respond to requests for comment and a 0:10:09.440 --> 0:10:13.319 note on programming. Tomorrow, Bloomberg will introduced a new podcast 0:10:13.400 --> 0:10:16.360 called Elon Inc. It's going to break down the most 0:10:16.400 --> 0:10:19.280 important stories on Mask all of his companies in his 0:10:19.360 --> 0:10:22.800 empire across the Bloomberg newsroom. Tune into that. This is 0:10:22.800 --> 0:10:35.439 Bloomberg Technology okay, time for talking tech. First up, Bumble 0:10:35.480 --> 0:10:38.680 founder Whitney wolf Heard is stepping down from her role 0:10:38.880 --> 0:10:41.920 as CEO. Wolf Heard founded the women's centric dating app 0:10:42.040 --> 0:10:45.120 in twenty fourteen and later took it public in twenty 0:10:45.120 --> 0:10:47.760 twenty one. She also briefly became one of the world's 0:10:47.760 --> 0:10:51.320 few women billionaires, who will be succeeded by Slack CEO 0:10:51.640 --> 0:10:55.440 Lydian Jones in January. And a Chinese startup founded by 0:10:55.520 --> 0:10:59.800 bench capitalist Kaifu Lee has taken the artificial intelligence space 0:10:59.840 --> 0:11:03.320 by storm with its one billion dollar valuation just eight 0:11:03.360 --> 0:11:06.839 months into its existence. I'm talking about zero one AI, 0:11:06.880 --> 0:11:09.120 which also received funding from the likes of Aali Barber's 0:11:09.120 --> 0:11:12.320 cloud unit. The startup developed an open source large language 0:11:12.320 --> 0:11:16.280 model available in both Chinese and English. Plus a flurry 0:11:16.280 --> 0:11:18.640 of AI related hearings are set to take place on 0:11:18.679 --> 0:11:21.800 Capitol Hill this week. US lawmakers in both the House 0:11:21.840 --> 0:11:24.880 and the Senate will gather to discuss possible measures to 0:11:25.080 --> 0:11:28.160 rain in the technology, especially as campaigning for the twenty 0:11:28.160 --> 0:11:31.280 twenty four general election heats up. This comes amid President 0:11:31.360 --> 0:11:35.200 Biden's sweeping executive order, which of course was issued last week. 0:11:35.280 --> 0:11:38.040 Now earnings for most big tech companies have come out, 0:11:38.080 --> 0:11:41.000 and while the group deliver better than expected profits, the 0:11:41.120 --> 0:11:44.440 outlook for those stocks are on shaky ground based on 0:11:45.040 --> 0:11:49.080 sales joining us from Chicago blooms Bloomberg's Ryan Lostellica. It's 0:11:49.080 --> 0:11:51.240 so interesting how the story changed. Right we go into 0:11:51.280 --> 0:11:54.400 it going, oh, that the magnificent five or seven. They're 0:11:54.400 --> 0:11:58.080 propping up profit estimates for twenty twenty four. We've come 0:11:58.120 --> 0:11:59.760 out the other side, and now everyone's worried about the 0:11:59.800 --> 0:12:00.640 sale out the ryme. 0:12:01.520 --> 0:12:02.400 Yeah, absolutely. 0:12:02.440 --> 0:12:04.400 I mean the thing about this earning season is really 0:12:04.440 --> 0:12:06.720 that no matter what narrative you really want to abscribe to, 0:12:07.040 --> 0:12:09.240 you will find a big tech result that will kind 0:12:09.240 --> 0:12:12.400 of fit your point of view. So Microsoft, for example, 0:12:12.440 --> 0:12:16.320 had very strong results. The stock initially did quite well, 0:12:16.360 --> 0:12:18.840 but given concerns about the macro backdrop and the Fed 0:12:18.920 --> 0:12:21.160 and treasure yields and things like that, the stock barely 0:12:21.280 --> 0:12:23.720 ended higher on the day, you know, pretty slight gain. Then, 0:12:23.760 --> 0:12:26.280 on the other hand, you have something like Alphabet, which 0:12:26.320 --> 0:12:29.040 was also a pretty strong result except for some weakness 0:12:29.040 --> 0:12:31.400 in their cloud business, and that stock saying almost ten 0:12:31.440 --> 0:12:35.200 percent following results, So a pretty outsized reaction, especially for 0:12:35.240 --> 0:12:37.040 a company that would probably classify as one of the 0:12:37.760 --> 0:12:41.600 cheaper of the big tech stocks at these traditional evaluation metrics. 0:12:41.800 --> 0:12:43.720 And then last week we saw Apple come out and 0:12:43.720 --> 0:12:45.880 they really gave a sort of a discouraging forecast for 0:12:45.960 --> 0:12:49.800 their holiday season, especially given concerns about the strength of 0:12:49.840 --> 0:12:52.680 their business in China, which is a major market for 0:12:52.720 --> 0:12:57.480 them for both supply chain and consumer demand purposes. That stock, however, 0:12:57.640 --> 0:13:00.760 it fell on the day, but not too much considering 0:13:01.520 --> 0:13:03.440 because there was a little bit of optimism about FED 0:13:03.480 --> 0:13:07.160 policy and you know that path going forward there. So 0:13:07.400 --> 0:13:09.400 again a very mixed thing. There's a lot of focus 0:13:09.440 --> 0:13:12.800 on the macroeconomic environment. But I'd say overall the big 0:13:12.800 --> 0:13:16.000 tech earnings have been mixed so far. But it does 0:13:16.000 --> 0:13:18.599 seem like people, you know, overall have been kind of 0:13:18.600 --> 0:13:20.720 looking past them and looking to what's the come next. 0:13:21.120 --> 0:13:23.440 Ran you are a member of the Bloomberg newsroom who's 0:13:23.480 --> 0:13:26.199 just like zeroed in on the Bloomberg terminal, every headline, 0:13:26.280 --> 0:13:28.640 every piece of data, and you flagged me before the 0:13:28.679 --> 0:13:31.680 show this UBS note right, which shows us that not 0:13:31.760 --> 0:13:35.080 everyone agrees with the fair you know, UBS's perspective is 0:13:35.080 --> 0:13:36.760 that tech stocks look contractive right now. 0:13:37.760 --> 0:13:37.960 Yeah. 0:13:38.000 --> 0:13:38.520 Absolutely. 0:13:38.559 --> 0:13:40.560 It says that some of the figures surrounding the group 0:13:40.640 --> 0:13:44.000 are overdone, and the you know, the sector looks pretty 0:13:44.000 --> 0:13:46.400 well positioned for growth, especially in twenty twenty four. It 0:13:46.400 --> 0:13:48.240 expects it to be one of the most you know, 0:13:48.360 --> 0:13:50.680 robustly growing sectors in the economy. 0:13:50.720 --> 0:13:52.000 So that's obviously a positive. 0:13:52.040 --> 0:13:55.880 It sees you know, buying opportunity and semiconductors, it sees 0:13:55.960 --> 0:13:59.840 you know, pretty you know, attractive margin prospects for software companies, 0:13:59.840 --> 0:14:02.760 and you know, we're talking about pretty widespread optimism there. 0:14:02.760 --> 0:14:04.240 And I would say that even though there were some 0:14:04.280 --> 0:14:07.360 disappointments this season and some pronounced selloffs, you know, most 0:14:07.440 --> 0:14:10.360 analysts remain pretty positive about the group, especially from a 0:14:10.360 --> 0:14:12.560 longer term perspective as far as their growth potential. 0:14:12.800 --> 0:14:15.720 So there's what's been and then there's what's to come 0:14:16.080 --> 0:14:19.240 for me in Vidia. You know, it's been an incredible 0:14:19.320 --> 0:14:22.400 ride on the stock YEA to date, but now because 0:14:22.400 --> 0:14:24.560 it's so big, like from an index perspective and a 0:14:24.560 --> 0:14:27.400 wasting perspective, the market will pay attention, right. 0:14:28.200 --> 0:14:30.880 Yeah, absolutely, and it's going to get you know, additional 0:14:30.880 --> 0:14:32.520 focus you know again for you know, one of the 0:14:32.520 --> 0:14:34.600 several quarters in a row now just because it is 0:14:34.680 --> 0:14:38.360 so central to the AI thesis right now, chips are 0:14:38.360 --> 0:14:40.440 really the first stop or anyone who's looking to build 0:14:40.440 --> 0:14:43.480 out any kind of AI infrastructure. Past two quarters have 0:14:43.480 --> 0:14:46.400 been extremely strong as far as their forecast goes. Will 0:14:46.400 --> 0:14:47.200 they go for a hat trick? 0:14:47.200 --> 0:14:47.920 Will they do it again? 0:14:47.960 --> 0:14:50.160 I mean, we'll see, And even then if they do, 0:14:50.680 --> 0:14:52.720 who knows how the stock's going to react? Is because 0:14:52.760 --> 0:14:54.520 you know, it's a name that you know by many 0:14:54.880 --> 0:14:57.800 traditional metrics, is you know, kind of looking pricey, especially 0:14:57.840 --> 0:15:01.040 within a context of you know, potential or higher rate environment. 0:15:01.120 --> 0:15:02.520 So that's one that people are going to be paying 0:15:02.560 --> 0:15:02.880 a lot. 0:15:02.800 --> 0:15:03.440 Of attention to. 0:15:03.560 --> 0:15:05.880 And if they kind of give any indication that AI 0:15:05.960 --> 0:15:09.880 demand isn't as strong as maybe some people are hoping for, 0:15:10.120 --> 0:15:12.120 that could have some broader implications as well. 0:15:12.360 --> 0:15:14.800 Definitely in the data center contact we focus so much 0:15:14.800 --> 0:15:16.680 in H one hundred. We have Grace Hopper coming down 0:15:16.720 --> 0:15:19.040 the pipe as well, thanks of billiam I's Ryan Flaseelica 0:15:19.080 --> 0:15:19.480 out there. 0:15:27.640 --> 0:15:30.160 People want to keep flying, families want to go on holidays. 0:15:30.240 --> 0:15:32.720 They just don't want to pay of turns as outrageous prices. 0:15:32.760 --> 0:15:35.040 So I think fares that next year, I mean, my 0:15:35.280 --> 0:15:38.120 operating assumptions fhares will go by a low double digit 0:15:38.160 --> 0:15:40.200 percentage again through the summer twenty four. It'd be the 0:15:40.240 --> 0:15:42.280 third year in a row, third summer in a row, 0:15:42.480 --> 0:15:44.600 we'll see double digit fare increases in Europe. 0:15:47.080 --> 0:15:49.920 That was Ryan S CEO Michael O'Leary earlier on Bloomberg 0:15:49.960 --> 0:15:53.200 Television with his outlook for travel demands. Also talked about 0:15:53.520 --> 0:15:55.960 the fuel prices at the moment and sort of delays 0:15:56.000 --> 0:16:00.200 in taking new airplanes impacting their ability to meet demand 0:16:00.240 --> 0:16:02.560 and sticking with travel demand delights to say, we're joined 0:16:02.560 --> 0:16:05.960 now by Expedy A CEO Peter Kern, and Peter is 0:16:05.960 --> 0:16:08.640 interesting to hear what Michael leary said there, you know, 0:16:08.720 --> 0:16:13.040 the challenges alongside meeting what he sees is demand. What 0:16:13.120 --> 0:16:14.440 kind of demand do you see? 0:16:15.360 --> 0:16:17.840 Yeah, well we've seen thanks ed for having me first 0:16:17.840 --> 0:16:20.160 of all, and I enjoyed the clip. 0:16:20.240 --> 0:16:22.680 What we see is steady demand. 0:16:22.680 --> 0:16:25.480 I would say, I think what he's talking about is 0:16:25.520 --> 0:16:29.160 that we are seeing some shifts as customers are looking 0:16:29.200 --> 0:16:33.200 for lower cost carriers over the main airlines. So he's 0:16:33.240 --> 0:16:35.560 probably benefiting from that and seeing a little bit of 0:16:35.600 --> 0:16:38.360 a move in his direction. I think overall air demand 0:16:38.720 --> 0:16:42.720 in Western Europe and in the North America, et cetera. 0:16:43.120 --> 0:16:47.360 Is pretty steady, but we're seeing generally priced declines across 0:16:47.400 --> 0:16:50.000 the markets. So I think what he's discussing as a 0:16:50.040 --> 0:16:54.520 shift in his favor, but it's not necessarily that that's 0:16:54.560 --> 0:16:56.640 true for everything across the board. 0:16:56.720 --> 0:16:59.840 Peter, what fascinates me about Expedire in the portfolio of 0:17:00.320 --> 0:17:05.080 brands and platforms is the granularity of your data. You know, 0:17:05.160 --> 0:17:09.400 you can tell me the demographics of people that are 0:17:09.480 --> 0:17:13.120 not traveling where they're traveling too. Right now, what does 0:17:13.720 --> 0:17:16.639 gen z look like? I know that's a very specific question, 0:17:16.920 --> 0:17:20.320 but who's traveling and particularly how have you seen the 0:17:20.400 --> 0:17:23.600 younger traveler behave in the most recent quarter. 0:17:25.040 --> 0:17:28.080 Yeah, I think we don't tend to break it that way, 0:17:28.119 --> 0:17:30.760 but I can tell you that the travelers, you know 0:17:30.760 --> 0:17:35.000 that Weezer travel has remained strong. Corporate still, you know, 0:17:35.200 --> 0:17:38.040 still not back to pre COVID levels. You see a 0:17:38.040 --> 0:17:41.080 lot of differences geography to geography. You know, we still 0:17:41.080 --> 0:17:44.600 have Asia is still opening up to a certain extent, 0:17:44.680 --> 0:17:47.600 which has been a tailwind in Asia and Latin America, 0:17:47.640 --> 0:17:50.760 whereas the West has sort of normalized, I would say, 0:17:51.440 --> 0:17:54.399 and in general, by and large, you know, people have 0:17:54.440 --> 0:17:58.440 been waiting for travelers to trade down for cheaper alternatives. 0:17:58.600 --> 0:18:00.440 We haven't seen that very much. Now. 0:18:00.640 --> 0:18:02.399 It's true that at the lower end of the market 0:18:02.440 --> 0:18:04.800 you see it a little bit more. But as you 0:18:04.840 --> 0:18:08.280 know it, we introduced our new grand loyalty program called 0:18:08.320 --> 0:18:10.920 one Key, and what we're seeing as people get accustomed 0:18:10.920 --> 0:18:13.280 to that is they're actually trading up when they have 0:18:13.480 --> 0:18:15.560 value that they can use to get a better room. 0:18:15.640 --> 0:18:17.800 Like if they have one key cash, which is our 0:18:17.840 --> 0:18:20.840 rewards currency, they trade up to a better room or 0:18:20.880 --> 0:18:23.600 a better experience, or use that for something better. 0:18:23.520 --> 0:18:26.360 Alongside Sorry to interrupeed, I was gonna say, alongside rewards. 0:18:26.359 --> 0:18:30.639 You've also focused kind of on content creation and influences 0:18:30.640 --> 0:18:33.600 on social media. Has that given any sort of tangible 0:18:33.640 --> 0:18:34.760 boost to your sales? 0:18:35.920 --> 0:18:38.520 Yeah, well we're you know, we're using all the latest 0:18:38.560 --> 0:18:41.560 marketing and reach tools we can. I mean, for us, 0:18:41.640 --> 0:18:44.520 it's an education process when we launch something like one Key, 0:18:44.800 --> 0:18:46.919 we want people to understand it. When where you have 0:18:47.480 --> 0:18:49.680 one key now in Verbo, which is the only place 0:18:49.720 --> 0:18:52.639 you can get rewards and vacation rentals, we want to 0:18:52.640 --> 0:18:55.800 make sure that people that are interested in vacation rentals 0:18:55.880 --> 0:18:58.880 understand and appreciate the benefit. So sometimes, you know, old 0:18:58.880 --> 0:19:01.679 fashioned advertising is the best way, and it's easier to 0:19:01.720 --> 0:19:04.600 reach people with more information through influencers and such. But 0:19:04.960 --> 0:19:06.679 you know, you referred to all the data we have 0:19:06.800 --> 0:19:09.360 on gen z. That's really what's powering our product now 0:19:09.400 --> 0:19:11.720 as we make the product better and better. The fact 0:19:11.760 --> 0:19:14.240 that we have all that data is what allows us 0:19:14.320 --> 0:19:16.840 to now take friction out of the process, use AI 0:19:16.960 --> 0:19:19.200 and machine learning to make the. 0:19:19.119 --> 0:19:21.520 Experience better, in the product better. And that's really where 0:19:21.520 --> 0:19:22.160 we're focused. 0:19:22.520 --> 0:19:25.680 It's the expedia that the consumer and our audience around 0:19:25.720 --> 0:19:27.800 the world knows. And then there's the B to B business. 0:19:28.080 --> 0:19:30.720 When you look at your growth trajectory going forward, what 0:19:30.880 --> 0:19:32.800 is the splitting contribution of those two. 0:19:33.960 --> 0:19:35.439 Yeah, well, B to B it's had a very good 0:19:35.520 --> 0:19:37.960 run for us, and in part, as I mentioned earlier, 0:19:38.160 --> 0:19:40.119 it has to do with the exposure of the business, 0:19:40.160 --> 0:19:42.520 which is exposed more to Asia and some of the 0:19:42.520 --> 0:19:46.080 markets that have come back more recently post COVID. But 0:19:46.160 --> 0:19:48.800 also we've been building that business, building the technology in 0:19:48.840 --> 0:19:52.200 that business, expanding our customer base. So that business has 0:19:52.240 --> 0:19:55.280 seen you know, growth in the twenties for the last 0:19:55.280 --> 0:19:57.399 several years, twenty percent plus. 0:19:57.480 --> 0:19:59.800 Top line growth last quarter. 0:19:59.680 --> 0:20:04.000 Was closer to twenty six twenty seven, but we expect 0:20:04.000 --> 0:20:06.239 that to continue. It is a smaller part of our 0:20:06.280 --> 0:20:08.880 overall business, and as you know, we've done a lot 0:20:08.920 --> 0:20:10.719 of work in the last couple of years on our 0:20:10.760 --> 0:20:14.240 core consumer business with one key with the launch of 0:20:14.240 --> 0:20:18.320 new products and capabilities. So we expect our bigger business 0:20:18.359 --> 0:20:21.959 to accelerate now, but the B to B business probably 0:20:22.000 --> 0:20:25.840 has slightly more you know, tailwinds still for a bit. 0:20:26.119 --> 0:20:28.560