'Bloomberg Technology' Full Show (03/07/2023)
♪ CAROLINE: I AM CAROLINE HYDE. ED: I AM ED LUDLOW. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: COMING UP, HOCKS HIT, JEROME POWELL SPOOKS MARKETS. MIKE WILSON WARNS GROWTH EQUITIES FACE PRESSURE AHEAD. ED: MORE JOB CUTS AT META. THE FACEBOOK PARENT PLANNING TO LAY OFF THOUSANDS THIS WEEK. MORE ON OUR BLOOMBERG EXCLUSIVE AHEAD. CAROLINE:
CHINA SHAKES UP OVERSIGHT OF ITS VAST TECH ARENA. XI JINPING FOCUSES ON FENDING OFF U.S. SANCTIONS AND ACHIEVING SELF-SUFFICIENCY. ALL OF THAT AND MORE COMING UP. THERE IS A LOT TO DIGEST IN THE MACRO PART OF THESE MARKETS TODAY. IT WAS ONE OF A PROSPECTIVE COMING FROM JEROME POWELL, COMING OUT FIGHTING. MAYBE THE FEDERAL RESERVE IS NOT DONE TACKLING INFLATION.
BIG TECH ON DECK. ALL OF THIS WORRY AROUND WHAT THE FEDERAL RESERVE WILL DO AFFECTED EUROPEAN TRADING. WE ARE OFF BY 1.3%. I AM LOOKING AT THIS INVERSION. THIS IS THE TWO YEAR BOND YIELD. THE COST OF BORROWING AT THE
TWO YIELD -- YEAR IS HIGHER THAN THE 10 BY A FULL PERCENTAGE POINT. -104 BASIS POINTS. THIS SIGNALS THE WORRY THE MARKET HAS ABOUT A RECESSION TO COME. LET'S LOOK AT THE U.S. DOLLAR STRENGTH WE SAW ON THE BACK OF THE HAWKISH TONE. BITCOIN UNDER PRESSURE TOO. CHAIR POWELL HAVING FIGHTING WORDS FOR CRYPTO. ED:
THOSE FIGHTING WORDS WERE THE MAIN DRIVER WHEN IT CAME TO SINGLE STOCK NAMES. ALTHOUGH, SOME INDIVIDUAL STOCKS, RIVIAN DOWN 14.5%. THE COMPANY PLANS TO OFFER $1.3 BILLION IN GREEN CONVERTIBLE NOTES THAT COULD HAVE A DILUTED EFFECT ON OUTSTANDING SHARES. TESLA UNDER PRESSURE, DOWN 3% AS ELON MUSK TALKED ABOUT TWITTER DEBT BURDEN. AMAZON DOWN .2%.
ALPHABET DOWN 1.3%. GOLDMAN-S TOP TECH PICKS FOR 2023, THAT DIDN'T DO MUCH TO SUPPORT THE STOCK AFTER POWELL MADE THOSE CLAIMS. META HAD BEEN MARKEDLY HIGHER AFTER MY COLLEAGUES AND I REPORTED THAT MORE LAYOFFS ARE COMING IN THE THOUSANDS THIS WEEK. POST POWELL, IT COMPLETELY FELL AWAY. TRADING DOWN .2%.
THAT IS THE EFFECT CHAIRMAN POWELL IS HAVING ON THIS MARKET. WE GO BACK TO BASICS, WE HAVEN'T TALKED ABOUT THIS IN A WHILE, BUT THE PROSPECT OF HIGHER RATES, DISCOUNTING THE VALUE OF FUTURE PROFITS FOR THE TECH SECTOR. IN THE NEW PRICE IN THE RECESSION RISK WHICH IS BACK ON THE TABLE. CAROLINE: THIS IS THE CONUNDRUM THE FEDERAL RESERVE HAS TO FOCUS ON. INFLATION WELL ABOVE 2% OF TEXTILE LABOR MARKET. AS YOU HAVE BEEN REPORTING.
COMPANIES HAVE TO START THE SQUEEZE. THEY HAVE TO PUT JOBS ON THE LINE. ELIZABETH WARREN COMING OUT AND ASKING, LOOK, WHAT DO YOU SAY TO THOSE JOBS? CHAIR POWELL SAYS, EVERYONE IS INFECTED -- AFFECTED BY INFLATION. TELL US A LITTLE ABOUT WHAT THE DURESS AT META, IS THIS SOMETHING WE CAN READ ACROSS THE REST OF THE TECH MARKET? ED: OUR UNDERSTANDING IS THAT THE VPS ARE MAKING LISTS.
NEW LAYOFFS. THOUSANDS OF NEW POTENTIAL CUTS. ON TOP OF THE 11,000 FROM LAST YEAR AND THE FLATTENING OF MIDDLE-MANAGEMENT EARLIER THIS YEAR. THEY ARE STILL UNDER DURESS. THIS IS THE YEAR OF EFFICIENCY. CAROLINE: WHEN WE THINK OF EFFICIENCY, MANY WOULD SAY THAT IS OF COURSE WHY KEY GROWTH NAMES ARE BEING FOCUSED ON. BECAUSE SUDDENLY THE FUTURE
GROWTH PERHAPS LOOKS LESS CERTAIN. IT IS WHAT WE HAVE HEARD -- WHAT WE HAVE HEARD TIME AND AGAIN. MIKE WILSON SAYS ONCE AGAIN EVEN THOUGH WE SAW THE SELLOFF OF 2022, WE COULD SEE A 20% DOWNSIDE FOR THE GROWTH NAMES. >> THERE'S PLENTY OF STOCKS THAT ARE GOING TO GO BANKRUPT. I DO NOT THINK THAT IS A CRAZY STATEMENT. BUT THAT IS NOT THE BULK OF THE MARKET.
THIS IS A POCKET OF THE STOCK MARKET AND OVERALL I THINK GROWTH STUFFED INTO THE THING THAT EVEN CYCLICAL NAMES HAVE GONE TOO FAR, COULD HAVE AS MUCH AS 20% DOWNSIDE NO PROBLEM. CAROLINE: LET'S TALK ABOUT ONE PARTICULAR ANALYST WHO LOOKS ACROSS THE WHOLE GAMUT OF TECHNOLOGY. NEED MANAGING DIRECTOR AND SENIOR ANALYST LAURA MARTIN. IT IS GOOD TO HAVE YOU ON. TELL US THE BRETZ OF COMPANIES
YOU ANALYZE. ARE WE CURRENTLY THROWING EVERYTHING OUT WITH THE BATHWATER AT THE MOMENT BECAUSE WE ARE WORRIED ABOUT FUTURE GROWTH'S NO MATTER WHO YOU ARE? >> YES. AS BOND YIELDS GO UP, BONDS LOOK MORE ATTRACTIVE AS A SUBSTITUTE TO EQUITIES.
WE ARE GETTING NET EQUITY OUTFLOWS INTO THE BOND MARKET THAT MAKES SENSE ECONOMICALLY. IT IS A HIGHER LEVEL OF CAPITAL STRUCTURE SO THEY HAVE LOWER RISK IN CASE SOMEBODY DOES GO BANKRUPT. SPECIFICALLY, AS YOU GET THIS ADVERTISING DOWNDRAFT, ADVERTISING HAS 80% MARGINS. GOOGLE SPECIFICALLY, AND META, REALLY ARE GOING TO BE UNDER MARGIN PRESSURE IF WE GO INTO RECESSION AND IF ADVERTISING DEMAND GETS WORSE. ED: IN THE CONTEXT OF MULTIPLES ON SOME OF THE NAMES YOU COVER, WHAT ARE THE BIGGEST CONCERNS RIGHT NOW? IS IT THE IDEA THAT RATES WILL GO HIGHER IN BIGGER INCREMENTS, OR -- OR ARE WE GETTING MORE CONCERNED ABOUT HOW DEEP RECESSION MAY COME? WORK OF THE BIGGEST CONCERN IS CASH FLOW. THAT'S THE ACADEMICALLY RIGOROUS WAY TO VALUE THESE COMPANIES.
IF YOU HAVE A HIGHER DISCOUNT RATE, ANY CASH FLOW THAT COMES YEAR FOUR AND FUTURE, LIKE AMAZON IS MAKING NO MONEY. META IS IN A DOWNDRAFT. THOSE OUT YEARS BECOME MUCH LESS VALUABLE. WOULD YOU CARE ABOUT A LOT HIS
CURRENT YEAR CASH FLOW AND NEXT YEAR CASH FLOW. ON THAT SCORE, APPLE IS $90 BILLION A YEAR OF CASH FLOW. SUPERSAFE. SUPER LIQUID. GOOGLE STILL CONTINUES TO STILL HAVE HIGH FREE CASH FLOW. WE WOULD LIKE THEM TO CUT COSTS FASTER BUT A LOT OF THEIR VALUE IS NOT PASSED YOUR FIVE. IN A RISING ENVIRONMENT, THOSE
CASH FLOWS ARE REALLY DISCOUNTED HARSHLY. CAROLINE: LET'S DIG IN ON THE ONLY NAME YOU HAVE AN UNDERPERFORM ON, META. THEY ARE TRYING TO TALK UP EFFICIENCY, LOOKING TOWARDS THEIR JOBS ON THE LINE, BUT ULTIMATELY I HAVE LOOKED AT SOME OF YOUR NEXT ON THIS COMPANY AFTER EARNINGS. YOU SAID YOU LIKE EFFICIENCY, BUT ARE THEY JUST REARRANGING THE CHAIRS ON THE TITANIC? >> I THINK THE QUESTION WE ARE ASKING IS, DOES META HAVE A TERMINAL VALUE IN ITS CORE BUSINESS? ONE OF THE DATA POINTS WE ARE READING IS MOST OF THE LAYOFFS MARK ZUCKERBERG IS MAKING SIT IN THE CORE BUSINESS OF META THAT IS BEING UNDERMINED BY TIKTOK. ASSUMING TIKTOK DOES NOT GET BANNED, THE QUESTION WE HAVE IS IN THE CORE BUSINESS THAT FUNDS THE METAVERSE, DOES HE HAVE TERMINAL VALUE OR DOES HE LOSE ALL OF HIS CREATORS AND USERS TO TIKTOK? ASSUMING IT STAYS IN BUSINESS. I THINK THAT IS A REAL QUESTION FOR THESE NETWORK AFFECT BUSINESSES THAT BENEFIT FROM NETWORK EFFECTS ON THE WAY UP, BUT GET SLAUGHTERED BY NETWORK EFFECTS LIKE MYSPACE. ED:
HOW WORRIED ARE YOU ABOUT BRAIN DRAIN? I FIND THIS INTERESTING, ONE SOURCE DESCRIBED THIS LATEST ROUND OF LAYOFFS AS MORE OF A SLEDGEHAMMER. IF THE 11,000 IN NOVEMBER WERE DONE WITH A SCALPEL, THIS IS A SLEDGEHAMMER. I WONDER WHAT IS THE RISK WE LOSE WITH ALL OF THESE SMART PEOPLE THAT ARE TRYING TO DRIVE THIS LONGER-TERM TRANSITION SO THEY DON'T EVEN GET THERE? >> AGREED. IT IS HARD FOR MORALE TO LAY OFF PEOPLE. WHAT HAPPENS IS IF YOU ARE NOT SURE YOU ARE GOING TO GET LAID OFF, YOUR MOST TALENTED PEOPLE PROACTIVELY LOOK FOR ANOTHER JOB AND GET HIRED AWAY. YOU ARE END UP -- YOU END UP LEFT WITH PEOPLE WHO CAN'T GET THE NEXT JOB. YOU HAVE THE PEOPLE WHO ARE THE
WORST OF THE BELL CURVE, NOT THE BEST. THE BEST GO SOMEWHERE ELSE WHERE THERE JOB SECURITY IS INTACT. CAROLINE: WHEN YOU HEAR ABOUT OTHER AREAS OF FOCUS, PARTICULARLY -- ONE AREA THAT CAN PERHAPS BE AN UPSIDE POTENTIAL IS ARTIFICIAL INTELLIGENCE. ARE YOU BUYING THAT?
>> GREAT QUESTION. LAST YEAR WAS THE YEAR OF THE METAVERSE. THIS WILL BE THE YEAR OF AI. WHEN WE ARE SITTING HERE A YEAR FROM NOW IN EARLY 2024, IS ANYONE TALKING ABOUT AI? MOST OF THESE BIG TECH COMPANIES HAVE BEEN USING MACHINE LEARNING FOR A LONG TIME TO MAKE THEIR RECOMMENDATIONS BETTER, TO SORT THEIR SEARCH PAGES. THEY HAVE ALL BEEN USING MACHINE LEARNING. CHAT GPT AND GENERATIVE AI IS NEW TO THE CONSUMER MARKET, BUT A LOT OF TECH GUYS WOULD SAY THEY HAVE BEEN USING AI/MACHINE LEARNING FOR YEARS.
I DON'T KNOW. I DON'T KNOW WHETHER AI IS AS BIG A DEAL FOR LARGE TECH COMPANIES AS IT IS FOR THE CONSUMER WHERE SUDDENLY THERE IS A USE CASE THAT IS REALLY EXCITING IN BOTH. BOTH PICTURES AND ANSWERS. CAROLINE: WE WILL PUT THAT TO A KEY. LAURA MARTIN, WHAT A DAY TO HAVE YOU ON. THANK YOU FOR SPENDING THE TIME. COMING UP, WE DIG INTO THE
MACRO. THE BETS ON THE RATE HIKE AND WHAT IT MEANS FOR TECH STOCKS AND VALUATIONS IN THE PRIVATE. VC LANDSCAPE WITH PORTAGE GENERAL PARTNER -- THAT IS GOING TO BE INTERESTING. ED: TWO STOCKS I AM TRACKING. AMAZON AND ALPHABET. BOTH DOWN FOLLOWING THOSE PUBLIC COMMENTS.
OLD HAS LISTED THEM AS TOP 10 PICKS FOR 2020 THREE. GOOGLE'S BEST POSITION FOR LONGER-TERM DRIVERS THAT LAURA WAS TALKING ABOUT GOOD AMAZON BECAUSE BASED ON VALUATION AND THE UNDERPERFORMANCE OF STOCK OVER A LONGER TIME, IS BEST POSITIONED THIS YEAR. TALKING ABOUT HOW APPLE HAS BEEN REINITIATED AT GOLDMAN WITH THE EQUIVALENT OF A BUY. THE FIRM IS BUSY. WE WILL KEEP TRACK OF THOSE NAMES. THIS IS BLOOMBERG. ♪ ♪ ED: TIME FOR THE VC ROUND UP.
PAYMENT PLATFORM -- JUST ACQUIRED AN ONLINE CHINA. CLEARING REGULATORY HURDLES WITH THE CHINESE, ALLOWING THEM TO BECOME A THIRD PAYMENT PROVIDER IN THE WORLD'S SECOND-LARGEST ECONOMY. AND BOOST ACCESS TO ITS LOCAL MARKET. THE FOUNDERS OF FARGO AIA, THE AUTONOMOUS VEHICLE COMPANY THAT WAS SHUT DOWN LAST YEAR, ARE LAUNCHING A NEW SELF-DRIVING BUSINESS THAT COULD SPECIALIZE IN TRUCKING AND RIDE HAILING, ACCORDING TO SOURCES. AMAZON, WHICH ALMOST RESCUED THEM LAST YEAR BUT PULLED OUT, IS NOT AN INVESTOR.
SALESFORCE LAUNCHING A $250 MILLION FUND, ITS LARGEST TO DATE, TO INVEST IN GENERATED AI STARTUPS. ALSO UNVEILING NEW TOOLS INTEGRATED WITH OPEN AI TECHNOLOGY AND DUBBED, EINSTEIN GPT. IT WILL BE USED FOR DRAFTING CUSTOMER SERVICE RESPONSE OR INITIAL SALES EMAILS. WE WILL HAVE MORE ON THAT LATER. CAROLINE: TO THAT POINT, SO MANY OF THESE BIG TECH COMPANIES HAVE BEEN USING MACHINE LEARNING AND OTHER FORMS OF ARTIFICIAL INTELLIGENCE FOR YEARS.
I THOUGHT IT WAS INTERESTING THAT THROUGH EINSTEIN, SALESFORCE AI IS ACTUALLY -- THEY HAVE BEEN USING 200 BILLION AI PREDICTIONS PER DAY ANYWAY. WHAT REALLY IS THIS LARGE LANGUAGE MODEL GOING TO BE ADDING IN TERMS OF THEIR OVERALL PROVISION? ED: I'VE GOT A SMILE. USE IT -- YOU SAY SALESFORCE OPEN I GPT IN THE HEADLINE BUT IT GOES BACK TO WHATEVER ONE HAS BEEN TELLING US ON THE SHOW, ENTERPRISE IS WHERE THEY SEE THE MOST PROMISE FOR THESE APPLICATIONS. THE HEADLINES KEEP COMING. CAROLINE: DOES NOT JUST ENTERPRISE, IT IS BANKS. PLENTY OF FINANCIAL COMPANIES ARE TRYING TO HARNESS THE POWER OF ARTIFICIAL INTELLIGENCE. WE CAN DIVE INTO THAT A LITTLE
BIT NOW WITH STEPHANIE TO. A GLOBAL INVESTMENT PLATFORM FOCUSED ON FINTECH KENT FINANCIAL SERVICES. IF GOT $3 BILLION IN ASSETS COMPANY RECENTLY CLOSED A --, ONE OF THE LARGEST VENTURE FUNDS OUT THERE IN THE WORLD, THEREFORE, ARTIFICIAL INTELLIGENCE, IS THAT A HIGH -- HEIGHT OR REALITY? >> IT IS THE ONE EXCEPTION TO THE MACRO WE HAVE BEEN SEEING.
I WOULD SAY, WE BACK THE WORLD'S MOST INNOVATIVE COMPANIES AND WE ARE ALREADY SEEING INTERESTING APPLICATIONS BEYOND ENTERPRISE AND BEYOND THE OBVIOUS, WHICH I THINK MOST PEOPLE WOULD THINK, HOW CAN AI IN A LARGE FINANCIAL INSTITUTION, REALLY IMPROVE CUSTOMER SERVICE? THAT IS THE MOST OBVIOUS PLACE, BUT I DO THINK IT CAN ENABLE SO MUCH MORE. I CAN IMAGINE A WORLD IN WHICH YOUR COMPLETE FINANCIAL PICTURE, AS A CONSUMER, IS COMPLETELY AUTOMATED BY AI. SO IT IS BEYOND JUST BEING ABLE TO INTERACT IN NATURAL LANGUAGE, BUT ALSO BE ABLE TO ACTUALLY HAVE THE AI AND/OR MACHINE LEARNING NEW THINGS ON YOUR BEHALF. ED: I KNOW AN AREA YOU ARE POSITIVE ABOUT HIS VERTICAL SASS. DO YOU MAKE BETS ON AI RELATED STARTUPS, OR DO YOU MAKE BETS ON THE COMPANIES AND STARTUPS THAT WILL BENEFIT FROM OTHER AI TOOLS? >> I AM MORE EXCITED ABOUT VERTICAL SPECIFIC SASS THAT I AM ABOUT HORIZONTAL AI. AT THE END OF THE DAY, YOU STILL NEED VERY SPECIFIC SEMANTIC SUBJECT MATTER AND EXPERTISE, AND A FOCUS ON A SPECIFIC TARGET SEGMENT IN ORDER TO -- IN ORDER TO CREATE A GREAT PRODUCT EXPERIENCE.
WE HAVE ALWAYS BEEN FOCUSED ON KNOWING YOUR CUSTOMER, SERVING YOUR CUSTOMER WELL. AI IS GOING TO BE A TOOL THAT ALLOWS YOU TO BETTER SERVE THAT CUSTOMER AND THAT SEGMENT. ULTIMATELY WE ARE MUCH MORE BULLISH ON THE VERTICAL FOCUS RATHER THAN THE HORIZONTAL TECHNOLOGY WHICH AT THE END OF THE DAY IS PROBABLY GOING TO BE OWNED BY THE LIKES OF OPEN AI.
I WOULD ADD ONE THING, WHICH IS IN THE FUTURE, IF THE MODELS ARE IN FACT KIND OF COMMODITIZED, WHAT REALLY MATTERS IS THE VERY SPECIFIC DATA YOU HAVE. DIETARY DATA BECOMES THE MAJOR ADVANTAGE. THEREFORE THAT ALSO FAVORS VERTICAL SPECIFIC APPLICATIONS VERSUS HORIZONTAL. ED: I WANT TO TALK ABOUT THE ENVIRONMENT WE ARE IN.
MATT HARRIS FROM BAIN CAPITAL HAS BEEN ON THE SHOW RECENTLY. WE HAD LAYLA STIRRED, BOTH SAYING IT IS A GREAT TIME TO BE WRITING CHECKS, PARTICULARLY AT THE EARLY STAGE OF THE CURVE. DO YOU AGREE WITH THEM THAT THERE IS OPPORTUNITY IN THIS MOMENT? >> I WOULD SAY IT'S DEPENDS ON HOW YOU THINK ABOUT WHAT EARLY STAGE IS SPIRIT ACROSS THE BOARD, BECAUSE OF WHERE THE FED RATES ARE, RISK ASSETS ARE OUT OF FAVOR. I WOULD SAY THE LARGEST IMPACT HAS BEEN ON SERIES D.
WHERE WE HAVE SEEN VALUATIONS DROPPED MORE THAN 50%. MIRRORING THE PUBLIC MARKETS DROPPING 70%. I WOULD SAY -- VALUATIONS ON THE EARLIER SIDE OF THE CURVE HAVE ALSO SEEN A TRICKLE-DOWN EFFECT, BUT IT HAS BEEN THE BIGGEST LEG. VALUATIONS THERE HAVE DROPPED
MORE LIKE 10% TO 25%. ACROSS THE BOARD, IT IS A GREAT TIME TO BE A VENTURE INVESTOR. HOWEVER, THE LATER STAGE VENTURE DEALS WHERE THERE HAS BEEN AN EXIT IS AN IMBALANCE OF SUPPLY AND DEMAND IN TERMS OF CAPITAL HAVE SEEN THE LARGEST VALUATION FALLOUTS. AIRLINE CODE WHEN YOU ARE LOOKING AT THE EARLY STAGES, WHERE IN THE WORLD DO YOU FOCUS? WHAT IS INTERESTING ABOUT YOUR PORTFOLIO IS THAT IT IS GLOBAL. HIS EUROPE RATE? IS IT THE U.S.? ASIA?
>> WE'VE GOT A GLOBAL PORTFOLIO BUT ONE THIRD OF IT IS IN EUROPE. THERE ARE SIGNIFICANT REGIONAL DIFFERENCES, EVEN WITHIN EUROPE, IN TERMS OF WHERE THE REGULATORY ENVIRONMENT IS GOING, IF YOU LOOK AT THE DIFFERENCES BETWEEN BANKING, INSURANCE AND WEALTH MANAGEMENT. WE SEE GLOBAL MACRO TRENDS AS BEING INTERESTING.
THERE IS INVESTMENTS TO BE MADE IN EUROPE AND NORTH AMERICA. IN TIMES LIKE THIS WHERE VALUATIONS HAVE DECREASED GLOBALLY, WE TEND TO SEE FLIGHTS TO CAPITAL TO LARGER MARKETS LIKE THE U.S., THE U.K., ETC.. BUT WITHIN FINTECH, YOU NEED TO BE AWARE OF REGULATORY NUANCES. ED: GENERAL PARTNER AT PORTAGE, THANK YOU SO MUCH. WE ARE MOVING OUR SHOW NEXT WEEK TO EARLIER IN THE DAY AND WE WANT TO TAKE THAT GLOBAL VIEW. IT IS INTERESTING TO HAVE A PARTNER ON THAT LOOKS GLOBALLY.
LET'S TURN VERY QUICKLY TO CRYPTO. GRAYSCALE PLUS FIGHT OVER BITCOIN ETF BEGINS IN COURT. >> WE ARE WATCHING WHAT HAS BEEN HAPPENING IN THE CRYPTO SPACE. WHAT WE SEE IS QUITE A LOT OF TURMOIL. WE SEE FRAUD, BC A LACK OF
TRANSPARENCY, RUN RISK. WOULD WE HAVE BEEN DOING IS MAKING SURE THAT THE REGULATED FINANCIAL INSTITUTIONS WE SUPERVISE AND REGULATE ARE CAREFUL, ARE TAKING GREAT CARE IN THE WAYS THEY ENGAGE WITH THE CRYPTO SPACE. CAROLINE: SOME OF CHAIR POWELL REMARKS ON CAPITOL HILL.
OTHER NEWS IN TERMS OF CRYPTO, MINUTES AGO WE LEARNED BINANCE U.S. HAS WON APPROVAL TO BUY VOYAGE DIGITAL COME AT END ITS BANKRUPTCY AND REPAY CUSTOMERS PRIOR -- ALSO WAS THE START OF A COURT FIGHT BETWEEN GRAYSCALE INVESTMENTS AND TO THE SEC OVER PLANS TO CONVERT, IT HAD HOPED, $14 BILLION BITCOIN TRUST INTO AN ETF. OUR NEW RESIDENT IN TOWN, KAILEY LEINZ, WHO WE MISS A LOT FROM NEW YORK, BUT DOING AMAZING WORK FROM WASHINGTON INCLUDING YOUR CRYPTO SHOW. TALK TO US ABOUT WHAT FELT LIKE QUESTIONING COMING OUT FIGHTING ON BEHALF OF GRAYSCALE. >> THE TONE OF THE THREE JUDGES ON THIS APPELLATE COURT TODAY SEEMS TO HAVE SHIFTED THE ODDS. GRAYSCALE COMING UP WITH A
VICTORY. OUR OWN ANALYSTS PREVIOUSLY HAD A 60% CHANCE ON THE SEC BEING VICTORIOUS. THEY NOW ACTUALLY THINK IT IS 70% ODDS IN FAVOR OF GRAYSCALE. BECAUSE THE JUDGES DID SEEM SKEPTICAL OF THE SEC'S ARGUMENT THAT BITCOIN FUTURES SHOULD BE TREATED DIFFERENTLY THAN GOING SPOT. THAT IS THE ARGUMENT GRAYSCALE HAS BEEN PUSHING AGAINST, SAYING YOU SHOULD BE TREATING FUTURES AND SPOT THE SAME. CONCERNS ABOUT FRAUD AND
MANIPULATION SHOULD BE APPLICABLE TO BOTH. IT DID SEEM LIKE THE THREE JUDGES MAY BE MORE SYMPATHETIC TO GRAYSCALE HEADED -- HENCE THE MARKET REACTION. -- UP 9.6%. THE DISCOUNT TO ITS NET ASSET VALUE NARROWED. ED: FOR THE MARKET IS GOING TO TRY TO DISCERN WHAT THE OUTCOME IS GOING TO BE. THERE IS A RISK IN THAT. YOU ARE ALWAYS HESITANT TO SAY WHAT WOULD HAPPEN IF, BUT IF THE RULING FALLS IN GRAYSCALE'S FAVOR, IT OPENS DOORS. WHAT DOES IT MEAN FOR THEM? KATIE: IF IS THE OPERATIVE WORD.
IT COULD BE A WHILE BEFORE WE ULTIMATELY GET A RULING. AND THEN WHEN WE DO, IT MATTERS WHAT THE LANGUAGES. SHOULD THEY PUSH BACK AGAINST THE SEC? DOES IT FORCE THEM INTO ACCEPTING IT? COULD IT LEAVE A DOOR OPEN FOR THE SEC TO SLAP IT DOWN ANOTHER WAY? THAT WILL BE IMPORTANT. IF GRAYSCALE IS ULTIMATELY ABLE TO MAKE THIS CONVERSION, IT WOULD GET RID OF THEIR NET ASSET VALUE PROBLEM BECAUSE IT WOULD ALLOW REDEMPTIONS AND POTENTIALLY TURN INTO AN ETF AND IT COULD MEAN OTHER PRODUCTS LIKE IT COULD BE INTRODUCED IN THE MARKET. CAROLINE: WE BROKE BEFORE YOU CAME THE NEWS REGARDING VOYAGER.
BEING ABLE TO BE SOLD TO BINANCE. THERE WERE OTHER ASSETS ON DECK WHEN IT COMES TO FTX AND IT LOOKS AS THOUGH THEY ARE DELAYING THE AUCTION BRIEFLY. >> LEGER ASKED, THEIR DERIVATIVES PLATFORM, WAS ONE OF THE FEW AREAS OF THE FTX EMPIRE THAT REMAIN SOLVENT. IT HAD ITS AUCTION DELAY TO MARCH 22. UNCLEAR THE REASON WHY. ED: KAILEY LEINZ.
THANK YOU. CHINA WARNING OF CATASTROPHIC CONSEQUENCES IF WASHINGTON'S PUSH TO CONTAIN BEIJING CONTINUES. THIS IS BLOOMBERG. ♪ >> CLAIMS THAT IT SEEKS TO OUTCOMPETE CHINA. IT SEEKS TO GET THE TWO COUNTRIES BLOCKED IN A ZERO-SUM GAME. CAROLINE: WELCOME BACK. THAT WAS JUST CHINA'S NEW FOREIGN MINISTER CALLING THE U.S. APPROACH TO BEIJING A RECKLESS
GAMBLE. THIS IS IN STARK CONTRAST TO WHAT WAS HAPPENING ON THE HILL TODAY. DISCUSSIONS ABOUT RESTRICTING ACCESS TO THE TIKTOK AT. -- TIKTOK APP. WE HAVE THE PERFECT GUEST TO DISCUSS AT ALL. YOU ARE ABOUT TO GO OUT TO CHINA SOON.
TALK TO US ABOUT WHAT YOU HEARD FROM CHINESE LEADERSHIP TODAY, A TOUGH STANCE SEEMINGLY THEY HAVE DECIDED TO FIGHT FIRE WITH FIRE AND SOME WAY. GUEST: IT'S NOT SURPRISING. THIS SORT OF RHETORIC, THEY HAD BEEN CAREFUL NOT TO USE THIS KIND OF STRAIGHTFORWARD RHETORIC AND CALLING OUT THE U.S. POLICY ON CHINA. IT HAS COME ON THE HEELS OF THE BALLOON INCIDENT, THE CANCELLATION OF SECRETARY BLINKEN VISIT TO CHINA THEN U.S. ANXIOUS -- ACTIONS LIKE EXPORT
CONTROLS AND OTHER RESTRICTIONS. THEN THE HEARINGS LAST WEEK THAT KICKED OFF SEASON OF HEARINGS WITH THE HOUSE SELECT COMMITTEE ON CHINA FOR EXAMPLE WHICH USED SOME HARSH RHETORIC. IT IS NOT SURPRISING TO SEE CHINA PUSHBACK ON THIS, BUT IT IS UNUSUAL FOR THEM TO YOU SUCH STRONG LANGUAGE. CAROLINE: I'M INTERESTED IN WHAT YOU MADE OF THE SHAKEUP WHEN IT COMES TO TRYING TO ENSURE AI PARTICULARLY CHIPMAKING IS FRONT AND CENTER FOR CHINA, THAT THEY DON'T LOSE OUT DESPITE THE TRADE EMBARGOES AND ISSUES THAT ARE PUT ON HOLD IN TERMS OF GETTING HOLD AND ACCESS TO CERTAIN U.S. TECHNOLOGIES. GUEST: I BIT THE RESTRUCTURING WE ARE
SEEING COMING OUT OF THE NPC, IT REFLECTS TO SOME DEGREE IN THE TECHNOLOGY SECTOR THIS RECOGNITION THAT THE U.S. IS PUTTING INCREASING PRESSURE ON KEY PRIORITIES FOR BEIJING LIKE ADVANCED COMPUTING. SO WE SEE THE U.S. TAKING ACTION ON EXPORT CONTROLS.
CHINA IS STILL GRAPPLING WITH THE FULL IMPLICATIONS OF THAT AND THERE WILL BE A LOT OF FOCUS ON DOMESTIC INVESTMENT ON THESE TECHNOLOGY SECTORS LIKE SEMICONDUCTORS AND ARTIFICIAL INTELLIGENCE. I THINK BEIJING IS STRUGGLING TO FIGURE OUT A WAY TO KEEP INVESTING IN THE DEMISED INDUSTRY AND PUSH BACK AT SOME POINT ON SOME OF THESE RESTRICTIONS WE ARE SEEING THE U.S. DIRECT AROUND COMPANIES ACCESS TO TECHNOLOGY. ED:
A HEADLINE HIT THE BLOOMBERG TERMINAL, XI JINPING'S FRUSTRATION OF BIDEN GROWS WITH WARNING OF CONFLICT. IT GOES TO HOW THE COMMUNICATION FROM THE FOREIGN MINISTER GANG BUT ALSO XI JINPING IS COMING TO NEW YORK LATE -- COMING DIRECTLY THAT THEY WILL BE CRACKING DOWN. GUEST: AT ONE LEVEL COMING OUT OF THE ZERO COVID RESTRICTIONS, CHINA HAS PIVOTED IN THE ECONOMIC AND SOCIAL SPHERE TO SHOW THAT IS OPEN FOR BUSINESS.
PART OF THE GAME IS TO SHOW FOREIGN INVESTORS AND BUSINESSES CHINA IS BACK ON TRACK AFTER DIFFICULT ZERO COVID LOCKDOWN. THAT IS ONE ISSUE, BUT AT THE SAME TIME CHINA IS FACING U.S. RESTRICTIONS ON TECHNOLOGY AND ALSO CONCERNS AROUND CHINA'S CONTINUED SUPPORT FOR MOSCOW AND TALK IN WASHINGTON IN THE EUROPEAN CAPITALS ABOUT SANCTIONS. AS THEY SURVEYED THE LANDSCAPE TRYING TO PORTRAY BUSINESS AS USUAL, CHINA IS FACING A LOT OF OUTSIDE PRESSURE THAT IS PUSH AGAINST THAT. ED: HOW SUCCESSFUL HAS CHINA BEEN IN LEVERAGING SOME OF THE U.S.
PARTNERS AND ALLIES IN GETTING AROUND THIS TECHNOLOGICAL BLOCKADE? IT SEEMS AS IF THE U.S. IS CONVINCING MOST OF THE WESTERN WORLD TO GO ALONG WITH IT. GUEST: THAT'S VERY MUCH A WORK IN PROGRESS. IT'S TRICKY BECAUSE IN SOME AREAS LIKE EXPORT CONTROLS, THERE HAVE BEEN INTENSE NEGOTIATIONS BETWEEN THE DUTCH GOVERNMENT AND THE JAPANESE GOVERNMENT ABOUT ALIGNING WITH SOME OF THE TOUGH CONTROLS THAT THE U.S. PUT ON IN OCTOBER. WITH THESE COLLABORATIONS BETWEEN ALLIES THAT THE U.S.
IS TRYING TO CONTAIN OR CONSTRAIN CHINA AND SOME OF THESE TECHNOLOGY AREAS, THE DEVIL IS IN THE DETAILS AND IT CAN BE TRICKY TO GET THE COUNTRIES THAT MAY NOT HAVE SIMILAR KINDS OF EXPORT CONTROLS OR INVESTMENT RESTRICTIONS TO GO ALONG WITH THIS. IT IS VERY MUCH A WORK IN PROGRESS, BUT CHINA IS VERY CONCERNED ABOUT THIS AND IS WORKING OVERTIME TO TRY TO PUSH FOR EXAMPLE FOR BETTER RELATIONS WITH EUROPE AND TO TRY TO DRIVE A WEDGE BETWEEN THE U.S. AND EUROPE ON SOME OF THESE ISSUES. CAROLINE:
A CEO HAS BEEN IN EUROPE TO TRY TO WOO REGULATORS SAME AS IN THE UNITED STATES. DIFFERENT TACTICS BEING TAKEN. THE EU SEEMS TO BE MORE INCLINED TO LISTEN TO HOW THE COMPANY MIGHT BE ABLE TO PUT IN PLACE RESTRICTIONS FOR DATA FLOW FROM -- DATA FLOW FROM TIKTOK. GUEST: TIKTOK IS THE POSTER BOY FOR THIS. TIKTOK HAS BEEN VERY AGGRESSIVE AS PART OF ITS NEGOTIATIONS WITH THE U.S. GOVERNMENT THAT HAS GONE ON FOR
ABOUT TWO YEARS TO BE MORE PUBLIC ABOUT THE KINDS OF PROCEDURES IT IS PUTTING IN PLACE TO PROTECT U.S. CITIZEN DATA. OVER THE LAST MONTH, THE TIKTOK CEO HAS BEEN VERY OUTSPOKEN IN DISCUSSING ALL THE MEASURES THEY ARE TAKING WHICH ARE PRETTY CONSIDERABLE. THEY SPENT $1.5 BILLION TO ARCHITECT U.S.
ENCLAVE THAT PROTECTS USER DATA AND PROTECTS AGAINST CENSORSHIP. THERE ALSO ALLOWING REVIEW OF THEIR AI ALGORITHM. THEY HAVE A TALL ORDER TO COMMENCE THE U.S.
CONGRESS AND BIDEN ADMINISTRATION THAT THEY ARE TAKING ENOUGH STEPS TO PROTECT U.S. PRIVACY. THE CEO WILL TESTIFY IN FRONT OF A HOUSE COMMITTEE AND THAT WILL BE A KEY INDICATOR OF HOW SUCCESSFUL TIKTOK SPAN IS IN TERMS OF CONVINCING U.S. REGULATORS THAT THEY HAVE TAKEN ENOUGH STEPS TO PROTECT U.S. USER DATA.
THE REGULATORS ARE WATCHING THIS AS WELL. CAROLINE: WITH ALL YOUR KNOWLEDGE OF CHINA AND ITS LEADERSHIP, ARE YOU CONVINCED? GUEST: I HAVE SEEN THE TIKTOK PROPOSAL AND IT LOOKS TO ME LIKE IT IS PRETTY TOUGH. THEY DECIDED NOT TO CONTEST THE NATIONAL SECURITY CONCERNS THAT THE U.S. GOVERNMENT WAS PUTTING FORWARD SO THEY ARCHITECTED THE SYSTEM USING A LOT OF CAPABLE CYBERSECURITY AND OTHER DATA PRIVACY EXPERTS TO TRY TO ADDRESS THOSE CONCERNS HAD ON. IT'S DIFFICULT TO KNOW THE FULL
DETAILS, BUT FROM WHAT I HAVE SEEN THEM PRESENT IT LOOKS LIKE IT'S A PRETTY SERIOUS EFFORT TO ADDRESS THE CONCERNS AND THEY SPENT A LOT OF MONEY ON THIS. THEY ESTIMATE IT WILL TAKE ABOUT $1 BILLION TO RUN THAT ENCLAVE. I DON'T KNOW OF ANY OTHER SOCIAL MEDIA COMPANY THAT HAS TAKEN THOSE KINDS OF ACTIONS TO TRY TO ADDRESS HEAD ON THOSE CONCERNS AROUND DATA PRIVACY AND USER DATA PRIVACY. IT IS AN IMPRESSIVE EFFORT AT LEAST SO FAR. ED: THE QUESTION FOR WASHINGTON, D.C., IS IT SUFFICIENT?
THANK YOU SO MUCH. COMING UP, ELON MUSK TOOK THE STAGE AT THE MORGAN STANLEY CONFERENCE IN SAN FRANCISCO. WE WILL BRING YOU THE TAKEAWAYS INCLUDING HIS TAKE ON AI. WE ALSO HEARD FROM KEN GRIFFIN HIS THOUGHTS ON THE TECHNOLOGY.
>> THIS BRANCH OF TECHNOLOGY HAS REAL IMPACT ON OUR BUSINESS. I'M REALLY EXCITED TO SEE HOW THIS CHANGES THE WORLD. ♪ >> HOUSING AND TECH ARE VERY STRAIGHT SENSITIVE. CONSTRUCTION AND HOUSING IS OBVIOUS WHEN YOU HAVE A SHORT MORTGAGE CYCLE.
BUT FOR TECH, WE HAVE A DECADES LONG EQUITY AVAILABILITY OF CAPITAL AND THAT HAS BEEN SHUT DOWN BY THE FED AS WELL SO THOSE ARE GOING TO FEEL THE IMPACT FIRST. CAROLINE: THE MACRO PERSPECTIVE. THOSE WERE HIS THOUGHTS ON HOW THE TECH SECTOR IS EVOLVING WITH THE NEW INTEREST RATE REGIME.
APPLE ADDING A NEW COLOR TO ITS PALATE, THE COMPANY ANNOUNCED A NEW YELLOW VERSION OF THE IPHONE TODAY ADDING TO THE EXISTING MIDNIGHT BLUE, PURPLE, RED, AND STARLIGHT OPTIONS. SONOS IS REVAMPING ITS LINE OF HOME SPEAKERS AIMING TO GO AFTER THE MARKET MORE AGGRESSIVELY. GOOGLE AND AMAZON ARE ROLLING OUT FEWER NEW PRODUCTS AT THE MOMENT. THE COMPANY HAS TWO NEW MODELS.
SURROUNDSOUND, AND A REPLACEMENT FOR SONOS 1. FINALLY, OVER IS LAUNCHING -- UBER IS LAUNCHING NEW FEATURES TO MAKE AIRPORT TRAVEL LESS STRESSFUL. FROM STEP-BY-STEP INSTRUCTIONS TO GUIDE YOU THROUGH THE AIRPORT TO WALKING PTAS. -- WALKING ETAS. I HAVE TO GET YOUR TAKE ON, WE GET LOST IN THE NOISE OF SURROUNDING ELON MUSK, BUT HE TOOK TO STAGE TODAY. ED: HE GAVE US 10 MINUTES NOTICE, HE GAVE US A LIVE LINK THAN THE BLOOMBERG NEWSROOM ERUPTED. WE GATHERED AND DID A LOT OF BLOG. THERE WERE QUESTIONS,
EVERYTHING FROM WHEN IS THE TWITTER EXECUTIVE BENCH GOING TO BE AS DEEP AS TESLA? SO MUCH TO DISCUSS. MY EDITOR AND FRIEND AND CO-SUFFERER THROUGH THE PROCESS JOINS ME ON SET. THERE WERE A LOT OF TAKEAWAYS. YOU AND I WROTE ABOUT A NUMBER OF THEM. ONE WAS THE DEBT AND -- IT IS $1.5 BILLION ANNUALLY, HE
JUSTIFIED THE SAVAGERY OF LAYING OFF ALL THE STUFF. -- LAYING OFF ALL THE STAFF. 6 HE'S -- >> HE SAID THEY ARE GETTING TO BE CASH FLOW EQUAL MAYBE EDGING TOWARD CASH FLOW POSITIVE. HE WENT ON TO SAY THAT THEY ARE NOW EBITDA POSITIVE AND I THINK THIS IS NOW PART OF HIS OPTIMISM.
WITH SEEN A LOT OF OPTIMISM FROM HIM DESPITE SPENDING $44 BILLION ON TWITTER, DESPITE THE LAYOFFS, HE REALLY THINKS THAT HE CAN TURN IT AROUND. NOT ONLY DOES HE THINK HE CAN MAKE IT CASH FLOW POSITIVE, HE THINKS HE CAN RAKE IN MORE FROM TWITTERS ADVERTISERS. ED: WE LEARNED A LITTLE BIT ABOUT HOW HE IS MEASURING SUCCESS AT TWITTER. YOU KNOW THE SOCIAL MEDIA LANDSCAPE SO WELL. HE SAID DON'T WORRY ABOUT MONTHLY OR DAILY ACT -- ACTIVE USERS. HE SAID 130 MILLION AVERAGE
USER HOURS PER DAY. >> WHAT HE MEANS IS THEY HAVE THIS PLATFORM THAT REALLY HAS THE PULSE OF THE NEWS. IT'S WHERE EVERYONE IS TALKING ABOUT WHAT'S HAPPENING. THEY AREN'T ABLE TO MONETIZE THAT OR MAKE MONEY OFF OF IT THROUGH ADVERTISING AT THE LEVEL THAT HE WANTS THEM TO. HE SAID HE WAS SHOCKED AT HOW POORLY THEY ARE TURNING THAT ATTENTION INTO MONEY.
ONE OF THE BARRIERS TO THAT IS HE THINKS THAT THE ADS ARE RELEVANT ENOUGH. -- THEY ARE NOT RELEVANT ENOUGH. PART OF THAT IS THAT TWITTER DOESN'T GATHER THE SAME TYPES OF DATA ON USERS THAT FACEBOOK DOES, THAT OTHER COMPANIES ARE ABLE TO BASED ON THEIR ACTIVITY. THE OTHER FACTOR IS THAT THERE IS THIS BIG ISSUE ABOUT WHAT ADVERTISERS CALL RAN SAFETY WHICH IS THAT WE DON'T WANT ADS APPEARING NEXT TO THE LATEST TRAGEDY OR EVEN NEXT TO HATEFUL COMMENTARY, WHAT PEOPLE ARE SAYING THAT YOU MAY BE DON'T WANT TO SELL NEXT TO THAT. TWITTER BECAUSE IT'S A PLACE FOR THE NEWS IS ALSO A PLACE FOR A LOT OF THAT KIND OF CONTENT THAT PERHAPS IS NOT AS INSPIRING. YOU DON'T NECESSARILY WANT TO THINK ABOUT WHERE YOU'RE GOING TO GET YOUR NEXT BURGER ALL YOU ARE WATCHING THE TRAGEDY. CAROLINE:
WHEN WE THINK ABOUT OVERSIGHT IN PARTICULAR UNDER ELON MUSK AND SAFETY IN MANY WAYS, I KNOW EUROPEAN REGULATORS HAVE BEEN THINKING ABOUT THIS A LOT AND LOOKING TOWARD NEW LAWS THAT ARE GOING TO PUT INTO PLACE TO PROTECT CONSUMERS BUT IT LOOKS LIKE THE U.S. FTC ALSO PLANS TO DEPOSE ELON MUSK AS PART OF ITS PROBE. THERE ARE A LOT OF PEOPLE INTERESTED IN THIS. >> THIS IS A COMPANY THAT IS GOING TO COME UNDER A LOT OF SCRUTINY IN PART BECAUSE THE LAYOFFS.
YOU CUTTING A LOT OF STAFF THAT PREVIOUSLY WERE HIRED BECAUSE OF WHAT REGULATORS WANTED. THEY WANTED SOMEBODY TO WORK ON HARMFUL CONTENT, TAKING DOWN INFORMATION OPERATIONS FROM FOREIGN OPERATIVES OF THE LIKE THAT TRY TO INFLUENCE THE PRESIDENTIAL ELECTION. THERE ARE PEOPLE IN PLACE BECAUSE THEY WERE NEEDED AT THE TIME. TWITTER IS GOING TO HAVE TO UNTANGLE DID WE CUT TOO DEEP? DID WE GET RID OF PEOPLE WHO WERE THERE FOR A REASON? IT'S GOING TO BE TOUGH TO ANSWER REGULATORS.
I THINK ELON MUSK IS SAYING WE WILL MAKE HIRES THAT WE NEED TO MAKE, BUT WE HAVE A LOT OF PRIORITIES RIGHT NOW. CAROLINE: THANK YOU SO MUCH, LEAPING ONTO ALL OF THIS PARTICULARLY WHEN IT LOOKS LIKE REGULATORS OVERSEEING SOME OF THESE COMPANIES. KEY INSTITUTIONS OVERSEEING SILVER GATE .
U.S. REGULATORS HAVE BEEN SENT TO THE HEADQUARTERS. THIS IS THE FBI SEE -- THIS IS THE FDIC LOOKING AT WAYS THIS COMPANY CAN AVOID SHUT DOWN. POSSIBLY LOOKING AT OTHER CRYPTO INVESTORS TO HELP SILVERGATE. ED: WE WERE TELLING YOU ABOUT THIS EARLIER IN THE SHOW, SALESFORCE GETTING IN ON THE ARMS RACE OF GENERATIVE AI. YOU'VE JUST BEEN ON STAGE AND
YOU TALKED ABOUT EINSTEIN GPT. LET'S START HERE. DID YOU PARTNER WITH OPEN AI BECAUSE IT WAS THE BEST TECHNOLOGY OR BECAUSE IT WAS GOOD MARKETING? GUEST: EINSTEIN GPT, WE ARE THRILLED TO ANNOUNCE TODAY AT THE SALESFORCE TRAILBLAZER DX IN SAN FRANCISCO, IT'S THE WORLD'S FIRST GENERATIVE AI PURPOSE BUILT FOR CRM AND WE ARE TAKING AN OPEN ECOSYSTEM APPROACH. OPEN AI IS OUR INITIAL PARTNER BUT WE WILL BE ADDING ADDITIONAL PARTNERS IN THE COMING MONTHS. CAROLINE: -- ED: HOW DOES THIS IMPROVE THE OFFERING TO YOUR CRM AI CLIENTS? GUEST: EINSTEIN GPT IS ABOUT COMBINING SALESFORCE PROPRIETARY AI WITH AN ECOSYSTEM OF VETTED GENERATIVE AI PARTNERS TO CREATE PERSONALIZED CONTENT FOR SELLERS, SERVICE AGENTS, MARKETERS, COMMERCE MANAGERS AS WELL AS I.T. DEVELOPERS.
FOR THE EMPLOYEES, IT'S ABOUT MAKING THEM MORE PRODUCTIVE. FOR CUSTOMERS, IT'S ABOUT DELIVERING MORE TAILORED RELEVANT EXPERIENCES. CAROLINE: I BELIEVE YOU ALREADY DELIVERED 200 BILLION AI PREDICTED ITEMS PER DAY. GUEST: WE HAD BEEN ON THE AI JOURNEY FOR OVER SEVEN YEARS. WE INTRODUCED THE WORLD TO
EINSTEIN IN 2016 AND THERE ARE OVER 215 BILLION PREDICTIONS PER DAY. EINSTEIN GPT IS THE NEXT GENERATION OF OUR EINSTEIN AI. IT INCLUDES GENERATIVE TECHNOLOGY WHICH MEANS THAT CONTENT GETS CREATED FOR SELLERS FOR EXAMPLE A DRAFT EMAILED TO A CUSTOMER. FOR SERVICE AGENTS, DRAFT RESPONSE TO A CUSTOMER SERVICE CHAT OR EMAILED.
FOR MARKETERS, GENERATING MARKETING PAGES. CAROLINE: OPEN AI SAYS IT GIVES THEM A CHANCE TO LEARN ABOUT REAL-WORLD USAGE. I'M INTERESTED IN THE RESPONSIBLE DEVELOPMENT ELEMENT BECAUSE SOME FINANCIAL COMPANIES HAVE BEEN LIMITING THEIR USE, THEIR EMPLOYEES USE OF CHAT GPT WONDERING ABOUT THEIR IP. HOW ARE YOU GOING TO ENSURE THAT THIS IS A SAFE SPACE FOR YOUR CONSUMERS TO WORK IN? GUEST: A LOT OF WHAT HAS BEEN COVERED IN THE NEWS ABOUT GENERATIVE AI HAS BEEN CONSUMER APPLICATIONS THAT ARE OPEN-ENDED AND HAVE HIGHER SAFETY AND ACCURACY CONCERNS.
IN THE BUSINESS SPACE, WE CAN REALLY FOCUS THE USE CASE, THE JOB TO BE DONE ON SPECIFICALLY WHAT DOES THE SALESPERSON NEED? WHAT DOES A SERVICE AGENT NEED TO DO HIS OR HER JOB? ED: THE OTHER BIG PIECE OF NEWS IS SALESFORCE VENTURE ARM LAUNCHING A NEW $250 MILLION FUND SPECIFICALLY TARGETING STARTUPS IN GENERATIVE AI. YOU ALLUDED TO FUTURE PARTNERSHIPS. WHAT ARE YOU LOOKING FOR WITH THAT FUND? GUEST: OUR NEW GENERATIVE AI STARTUP FUND FROM SORRELL -- SALESFORCE VENTURES IS ABOUT INVESTING IN AND NURTURING THE NEXT GENERATION OF AI STARTUPS. WE BELIEVE IT IS EARLY DAYS IN GENERATIVE AI AND THERE'S A LOT WE DON'T KNOW YET SO BEING ABLE TO HAVE AN ECOSYSTEM AND PLAY IS VERY IMPORTANT AND ALSO TO GIVE OUR CUSTOMERS CHOICE. CAROLINE: EDIT REFERENCED THIS FEELS LIKE A PR OFFENSIVE AROUND AI OR A MARKETING PLOY. ULTIMATELY, YOU HAVE BEEN DOING AI FOR YEARS.
DOES IT FRUSTRATE YOU THAT SUDDENLY EVERYONE IS TALKING ABOUT CHAT GPT OR WAS THIS CONVERSATION NEEDED? GUEST: IT'S GREAT IT HAS CREATED CONSUMER EXCITEMENT AND DEMAND. MY 85-YEAR-OLD NEIGHBOR KNOWS ABOUT CHAT GPT. BUSINESSES CARRY ABOUT -- CARE ABOUT AI. HOW DO I CLOSE MORE SALES? HOW DO I RESPOND TO MY CUSTOMER SUPPORT ISSUES MORE QUICKLY? THAT IS OUR TRUE NORTH IN DEVELOPING THESE APPLICATIONS IN AN ETHICAL AND RESPONSIBLE WAY.
CAROLINE: WE APPRECIATE YOU BEING WITH US. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. WE HAVE A GOOD LINEUP OF TOP EXECUTIVES TOMORROW. IT ALSO HAPPENS TO BE INTERNATIONAL WOMEN'S DAY. ED: I'M LOOKING FORWARD TO THOSE CONVERSATIONS.
NEW NAMES SOME OF THEM, OTHERS LONG TIME GUESTS. DON'T FORGET YOU CAN LISTEN TO OUR BLOOMBERG TECHNOLOGY
2023-03-10 00:31
