'Bloomberg Technology' Full Show (06/15/2023)
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE DOLEHIDE AND ED LUDLOW. CAROLINE COINED I AM CAROLINE -- ED: THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: CHUCK MANIS IS WITH US. ED: WE WILL LOOK AT HOW ARTIFICIAL INTELLIGENCE IS CHANGING INDUSTRY. CAROLINE: LET'S TALK MORE ABOUT AI.
PLAYING CATCH UP WITH MICROSOFT. THE TECH GIANT IS NEARING A NEW RECORD HIGH. FIRST, LET'S GO A LITTLE BIT BROADER. THE ECB IS HIKING MAIDS. S&P 500 IS UP.
SHINING A LIGHT ON SOME OF THESE NAMES TRADING IN THE U.S. WE ANTICIPATE CHINA ADDING MORE FUEL TO THE ECONOMY. THE ECB STICKS TO ITS GUNS. THE WE ARE GOING TO DIG INTO THAT MUCH MORE, IN A MOMENT. ED: I WANT TO FOCUS ON MICROSOFT. WE ARE AT A HIGH FRESH RECORD HIGHS.
IT IS ALL ABOUT ARTIFICIAL INTELLIGENCE, AND WE WILL GO DEEP LATER IN THE PROGRAM ABOUT HOW IN THE SPACE AT NO TIME, MICROSOFT HAS LEAPFROGGED TO HAVE LEADERSHIP IN ARTIFICIAL INTELLIGENCE. STICK WITH US FOR THAT. YOU NOTED BITCOIN. I AM LOOKING AT SOME OF THE CRYPTO RELATED STOCKS TO THE DOWNSIDE.
MY AND MARATHON DIGITAL BOTH DOWN. SOME OF THAT IS MACRO, RELATED TO THE FED. IN COIN BASE'S CASE, THEY ARE BUYING BACK. IS THAT HAVING AN IMPACT? THEY ALSO ANNOUNCED A PARTNERSHIP. WE WILL GET INTO THAT LATER IN THE PROGRAM. IT HAS BEEN OUR ASSET OF CHOICE.
IT'S SHARE OF GLOBAL MARKET IS A HIGH RIGHT NOW I'M ABOUT WE ARE SEEING CAUTION IN THIS SESSION. CAROLINE: IN SOUTH KOREA, THEY HAVE HALTED WITHDRAWALS. A LITTLE BIT OF DEJA VU HERE. INVESTORS SEEM TO BE SHRUGGING OFF THE RISK OF CONTAGION. JOINING US IS SOMEONE WHO KNOWS BITCOIN VERY WELL.
MOBILE PAYMENTS THAT USE BITCOIN NETWORK FOR FAST TRANSACTIONS AND ALLOWS USERS TO SEND MONEY WITHOUT FEES. I'M INTERESTED IN YOUR OWN MOVE AS OF LATE. IS THIS ABOUT PRODUCING COUNTERPARTY RISK? I UNDERSTAND THERE ARE A LOT OF BENEFITS, BUT HOW MUCH DOES NOT REFLECT SOME OF THE WORRY IN THE ECOSYSTEM AT LARGE? >> FIRST OF ALL, HELLO. NICE TO SEE YOU. DIVISION OF THE COMPANY, WE BELIEVE STRICTLY IN BITCOIN. WE BELIEVE THAT BITCOIN IS THE INNOVATION OF DIGITAL CURRENCY, OF BLOCK CHAIN. US AS A COMPANY, WE ARE LASER FOCUSED ON BEING A BITCOIN PROVIDER AND PROVIDING IMPRESSIVE TOOLS.
WE MADE A MOVE TO TAKE ALL OF OUR CUSTODY, A LOT OF OUR PROCESS, IN-HOUSE. WE DO NOT WANT TO WORK WITH OTHER PARTIES. IT IS A REALLY LONG PROCESS TO COMPLY WITH REGULATION. WE ARE REALLY PROUD TO TAKE ALL OF THAT IN-HOUSE AND BE THE BEST IN THE WORLD AT BITCOIN, NOT CRYPTO. WE THINK WE CAN DO IT OTHER THAN ANYBODY ELSE. ED: GOOD MORNING FROM SAN FRANCISCO. OUR CRYPTO TEAM WAS RIDING
OVERNIGHT THAT CRYPTO SHARE -- THEY ARE AT A 20 MONTH HIGH AND THERE IS A LOT OF CAUTION ABOUT THE BROADER MARKET AWAY FROM BITCOIN. WHAT DOES THAT TELL YOU? >> IT TELLS ME THAT MARKETS ARE EFFICIENT IN THE WORLD IS FIGURING OUT WHERE TRUE VALUE IS. IF I'M BEING HONEST WITH YOU GUYS, CRYPTO IS WORTH ZERO. IT TAKES TIME. THIS IS A NEW INDUSTRY AND A NEW TECHNOLOGY, BUT EVERYONE IS WAKING UP TO THE FACT THAT THE ONLY THING TO DELIVER AND MAKE CONSCIOUS GROUND FORWARD IS BITCOIN.
REGULATORS ARE REALIZING THAT. BUSINESSES ARE REALIZING THAT. THE NUMBER STILL SEEMS A LITTLE BIT OFF, BUT I THINK THE WORLD CAN TAKE ITS TIME. CAROLINE: MANY PEOPLE WOULD LIKE IF SOME OF THE SMALLER COINS ARE UNDER SOME CONCERNS OVER REGULATORY IMPACT. LIKE MANY WOULD SAY, WHERE IS THE REAL USE CASE AT THE MOMENT IN OTHER AREAS OF CRYPTO? HOW MUCH ARE WE SEEING THAT BEING ADOPTED BY THE EMERGING MARKETS, WHERE MANY DO SEE RAPID INFLATION? >> WE USE THE TECHNOLOGY FOR PAYMENTS. THERE IS A DIGITAL PUBLIC INFRASTRUCTURE FOR PAYMENTS. LET'S GET A MOMENT OF SILENCE FOR THAT. THAT IS INSANE.
LISA IS NOT PUBLIC INFRASTRUCTURE FOR THE WORLD. IT IS LIKE A PUBLIC UTILITY THAT WE ALL GET TO UTILIZE. IT IS OWNED BY NO ONE, ACCESSIBLE TO EVERYONE.
THINK OF IT LIKE THE INTERNET. THE INTERNET IS GLOBAL, PUBLIC INFRASTRUCTURE FOR THE WORLD TO COMMUNICATE. A REALLY POWERFUL THING. IT REALLY CHANGED LIVES AND IT EMPOWERS HUMAN RIGHTS AND REGIONS.
BITCOIN IS VERY SIMILAR FOR PROPERTY RIGHTS. WE USE DIGITAL PUBLIC INFRASTRUCTURE TO MAKE IT CHEAPER, AND MORE INCLUSIVE. I DO NOT THINK IT IS THAT COMPLICATED. I THINK IT IS SUPER SOUND AND THAT IS EXACTLY WHAT WE DO. ED: WE DO NOT HAVE TIME FOR MOMENTS OF SILENCE ON THIS PROGRAM.
THE COMPETITIVE RAN -- I KNOW THAT COIN BASE ANNOUNCED A PARTNERSHIP. IT IS ABOUT THE USE OF SELF CUSTODY. HE RECOGNIZED THAT AS COMPETITION? WHAT DO YOU MAKE OF THAT? >> THE WAY THAT WE THINK ABOUT THE NEXT 20 TO 50 YEARS OF THIS INDUSTRY IS THAT IT IS NOT A WINNER TAKE ALL OR WINNER TAKE MOST. IF THEY ARE TO BE DEVELOPED, IT
IMPLIES THAT A NETWORK HAS MORE THAN ONE. I LOVE TO SEE OTHER BUSINESSES AND COMPANIES JOIN US. IT MAKES OUR SERVICES MORE VALUABLE. I AM A HUGE IS GREAT. MORE PEOPLE WILL BE ABLE TO BUY CAROLINE: THAT CLAIM. HE IS A FELLOW BITCOIN MAXIMAL LIST. THE OVERALL REGULATORY
OVERHANG, PARTICULARLY IN THE U.S., YES, YOU HAVE MOVED TO SELF CUSTODY, BUT MANY WOULD SAY IT HAPPENED IN TANDEM AND THERE WERE RUMORS OF YOUR FORMER CUSTODIAN. THESE ISSUES AND WEAKNESSES, DOES THAT ADOPTION IN THE LONG TERM? >> DAMAGE WHICH ADOPTION? CAROLINE: THEY CLAIM BECAUSE THEY ARE CAUGHT UP IN THE SAME NARRATIVE. >> TOTALLY. I THINK THEIR JOB IS TO THEORETICALLY -- I'M JUST EXPLAINING WHAT IS GOING ON. THEIR JOB IS TO PROTECT THE ETHICS AND MORALITY IN THE U.S.
FINANCIAL MARKETS. THE NOTION THAT THEY WOULD HAVE AN ISSUE WITH EVERYTHING BUT BITCOIN DOES A LOT. IT DOES NOT SEEM LIKE AN ETHICAL, MORAL -- IT IS A PROBLEM. HOW DO WE FIX THAT, WE GO THROUGH WHAT WE ARE NOW. GIVING PROPER TRANSPARENCY TO THE AMERICAN PUBLIC.
I THINK WHERE THIS LEAVES US, VALUE IS GOING TO ACCRUE WHERE IT IS REAL. WHERE I THINK IT IS MORAL, ETHICAL, INNOVATIVE, BETTER, FASTER AND CHEAPER IS BITCOIN. THE PATH IS ALWAYS GOING TO BECOME LOCATED AND THAT IS PART OF FREE MARKETS, WHICH AMERICA LOVES DEEPLY. YOU'RE GOING THROUGH FREE-MARKET DISCOVERY. WE HAVE BEEN THROUGH IT BEFORE WITH THE INTERNET AND WE ARE SEEING MORE PATTERNS NOW. IT IS ABUNDANTLY CLEAR THAT IT IS BITCOIN. OVER A LONG-TERM TRAJECTORY,
BITCOIN IS BEING RIGHTLY CONSIDERED. CAROLINE: CERTAINLY BY SOME. THANK YOU. GREAT TO HAVE YOU. COMING UP, DISCUSSING THE POWER OF AIA AND ITS CUSTOMERS. WE WILL TALK ABOUT ALL OF THAT, NEXT.
AND A QUICK THE ARTIFICIAL INTELLIGENCE PLAN AND ITS DEAL. WE ARE LOOKING AT THE DIRECTION OF TRAVEL FOR HAVE REVENUE CONTINUES TO BE GENERATED. THIS IS BLOOMBERG. >> IT REMAINS A PLACE WHERE IT IS NICE TO TAKE MY DAUGHTERS ON VACATION, BUT BB IS NOT PART OF THE WORLD INNOVATION WISE. IT IS SITE OF BREXIT, IS THAT MAYBE THE U.K. GETS IT RIGHT.
CAROLINE: SEND SPEAKING ON THE SIDELINES IN LONDON SAYING THAT LONDON IS MAKING A MISTAKE AND WANTING TO REGULATE AIA BECAUSE ANOTHER KEY CONCERN WILL BE DISPLACEMENT AND STORY ABOUT THE REST OF THE TECH INDUSTRY. COULD BE AFFECTED FURTHER? LET'S BRING IN ELLEN HEWITT FOR MORE ON ALL OF THIS. WE HAVE HEARD IT BEING DISCUSSED. ARE YOU SEEING THE PIPELINE CHANGE WHEN IT COMES TO PEOPLE? >> YOUNG PEOPLE WHO WANT TO JOIN TECH ARE SEEING THESE LAYOFF NUMBERS. MORE HAPPENED IN 2022 AND THEY ARE THINKING THAT MAYBE THIS JOB IS NOT AS SECURE AS I THOUGHT IT ONCE WAS. THAT IS KIND OF AN INTERESTING QUESTION.
RIGHT NOW IT IS JUST BECAUSE OF THE ECONOMY BUT WHEN THEY ARE SENDING OUT BIG MEMOS EXPLAINING WHY THEY ARE LAYING OFF 70 WORKERS, THEY ARE OFTEN SIDING AIA SAYING WE NEED TO FOCUS MORE ON HOW AI CAN ENHANCE OUR BUSINESS. CAROLINE: WE HAVE HEARD THAT FROM MEDA AND LINDSAY OF OTHER FOUNDERS. WE HAVE SEEN A CHANGE, CULTURALLY OF PEOPLE THINKING, I GET A COMPUTER WHEN I GO TO UNIVERSITY, I GET GREAT INSTRUCTION AND I HAVE A JOB MADE. ARE PEOPLE TRYING TO WORK OUT THE WAYS THAT THEY CAN WORK WITH BIG TECH? THERE WAS ALL THIS TALK ABOUT SILVER LININGS, BUT THEY WILL GO AND START THEIR OWN THING. >> OVERALL, COMPANIES ARE NERVOUS RIGHT NOW. EVEN THESE BIG START UPS, THESE COMPANIES ARE SLASHING JOBS.
OFTEN, RECRUITERS ARE THE FIRST TO GO WHEN A COMPANY IS NOT HIRING ANYMORE. THERE IS PEOPLE ARE LEAVING JOBS THAT THEY DO NOT LIKE. ED: BEYOND THE LAYOFFS, HOW IS I ALTERING THE JOBS MARKET, IN TERMS OF THE TYPE OF TALENT? YOU ARE USUALLY HERE WITH ME IN BROADER SILICON VALLEY AND THERE IS A LOT OF EXCITEMENT ON HIRING AS PEOPLE MOVE TOWARDS WHAT IS EN VOGUE. >> IF YOU HAVE EXPERIENCE IN ARTIFICIAL INTELLIGENCE, YOU ARE IN DEMAND. I TALKED TO SOMEONE WHO RUNS A DATABASE THAT COLLECTS INFORMATION. SENIOR ENGINEERS ARE GETTING PAID SALARIES ON AVERAGE 12% HIGHER THAN SOFTWARE ENGINEERS WITHOUT THAT EXPERIENCE.
THE MONEY IS GOING TOWARDS PEOPLE WHO SAY THAT THEY CAN HELP THESE COMPANIES MOVE TOWARDS AIA TO ENHANCE THEIR BUSINESS. ANOTHER THING IS, IF YOU PLAY AROUND WITH CHATGPT AND USE IT TO CODE, PILATE IT CANNOT DO ITS JOB ON ITS OWN, IT CAN QUICKLY REPLACE A COUPLE PROGRAMMERS THAT YOU NEED TO BUILD A PROGRAM. NORMALLY MY FRIEND WOULD USE A DEVELOPER, BUT IT IS -- HE IS USING CHATGPT BECAUSE IT CAN CODE. HE KNOWS ENOUGH TO MAKE IT WORK THAT WAY. IT IS NOT HARD TO IMAGINE HOW THIS COULD REPLACE JOBS, DOWN THE LINE. ED: LET'S STICK WITH AI AND BRING IN THE CEO OF CUSTOMER SERVICE PRODUCTIVITY STARTUP. THEY CALL IT THE SALESFORCE OF
INDIANA. I DO NOT KNOW IF THEY WILL SAY IT IS FAIR OR NOT, BUT YOU ARE TAKING GENERATIVE AI TOOLS. HOW DOES THAT WORK? >> GOOD MORNING THANK YOU FOR HAVING ME ON THE SHOW. WE HAVE ALWAYS BELIEVED IN THE SOFTWARE. WE HAVE BEEN ON THIS JOURNEY FOR OVER FIVE YEARS NOW BECAUSE WE KNOW HOW AI WAS CHANGING BUSINESS.
WE ARE TAKING THE SAME IDEA OF AI AND SPECIFICALLY IN CUSTOMER EXPERIENCE. THAT IS OUR MISSION NOW. ED: HOW DOES IT HELP THE CUSTOMERS IN REAL TERMS? WE DANGLE THOSE WORDS IN FRONT OF EVERYTHING AT THE MOMENT. TELL US HOW IN PRACTICE, THIS HELPS YOUR CUSTOMER BASE. >> I WILL GIVE YOU TWO CLEAR EXAMPLES. WE HAVE ALL SEEN HOW BUSINESS IS. THIS WILL BRING IT TO ALL OF
US. IMPORTANTLY, WE BELIEVE IN HUMAN AUGMENTED AI, THINK OF COPILOT. WE ARE BUILDING AN AI ASSISTANT FOR SALESPEOPLE, SUPPORT PEOPLE, SO THINK OF THIS NEW WORLD, WHERE YOUR EMPLOYEES CAN BECOME EVEN MORE PRODUCTIVE, BUT DO NOT HAVE TO DO THE BORING, ROUTINE TASKS. THAT IS GOING TO MAKE LIFE A LOT EASIER FOR OTHERS. CAROLINE:
YOU ARE THINKING OF AN AUGMENTED HUMAN RATHER THAN BEING REPLACED. ARE YOU NOT HAVING TO HIRE AS MANY PEOPLE AS HE THOUGHT HE WOULD HAVE TO? WE WERE HEARING FROM ELLEN ABOUT HOW YOU CAN USE CHATGPT FOR CODING. >> PRODUCTIVITY WILL DEFINITELY INCREASE AND ALLOW US TO DO A LOT MORE AND DO IT FASTER. WE WILL CONTINUE TO HIRE DEVELOPERS, BUT THEY MIGHT CHANGE A LITTLE BIT AS YOU WERE DISCUSSING THE AIM DEMAND.
BUT WE BELIEVE THAT OVERALL, PRODUCTIVITY WILL GO UP AND THAT WILL HELP US DO A LOT MORE. THERE WILL BE PLENTY OF OPPORTUNITIES. WHAT IS INTERESTING IS THE AI HYPE.
POTENTIALLY AT THE HIGHEST EVER. I'M LOOKING AT YOUR SHARE PRICE. NOWHERE NEAR THE HIGHS OF PREVIOUS YEARS. I WONDER IF YOU FEEL THAT ULTIMATELY OUR COMPANIES ARE EATING THE AI LUNCH. IS IT TOO MUCH AROUND CERTAIN NAMES? >> WE ARE MORE IN THE BUSINESS PRODUCTIVITY SOFTWARE. WE ALL KNOW WHAT HAS HAPPENED TO TECH STOCKS. WE ARE A YOUNG COMPANY AND WE HAVE SHOWN THE LAST SIX TO EIGHT QUARTERS THAT WE ARE CONSISTENT.
I THINK THE MARKETS WILL EVENTUALLY CATCH UP. I WANT TO ASK YOU ABOUT INDIANA. THERE WAS TALK ABOUT THE OPPORTUNITY FOR AI AND YOU HAVE EXPANDED YOUR TALENT POOL THERE. SOME SAID IT INVOKED A RESPONSE. WHAT DO YOU MAKE OF IT? >> I THINK THAT AI IS WE HAVE CROSSED OUR 5 MILLION GOAL IN INDIANA. THIS WILL BE A PIVOTAL MOMENT AND YOU HAVE TO UNDERSTAND THAT INDIA HAS A VERY YOUNG WORKFORCE WHO IS HAVING TO LEARN AND I WAS ALSO AMAZED TO SEE THAT DIVERSITIES HAVE ALREADY STARTED LAUNCHING AI COURSES. I THINK THIS IS GOING TO BE A
PHENOMENAL OPPORTUNITY FOR INDIANA. YEAH GOING TO SEE A LOT OF STARTUPS FOCUSING ON THAT. WE THINK HE WAS SO MUCH FOR SPENDING TIME WITH US.
THE CEO OF FRESH WORKS. MUCH MORE AHEAD. THIS IS BLOOMBERG. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. CAROLINE: LET'S GET BACK TO THOSE MARKETS. WE ARE STILL LOOKING AT THE
HIGHER SIDE OF THINGS. WE ARE GETTING SOME RISK APPETITE BACK. CHINA CUT ITS INTEREST RATES. WE WILL SEE WHETHER OR NOT THEY CAN CONTAIN SOME OF THE RAPID INCREASES. NASDAQ UP. THE TWO YEAR YIELD PULLING BACK
ON THE DAY. WE ARE LOOKING AT NASDAQ GOLDEN DRAGON. THIS IS WHERE WE ARE SHOWING THE LIGHT ON THE HIGHER SIDE. IT SURPRISED RATE CUT BY CHINA, HELPING SOME OF THE KEY TECH NAMES OVER THERE. INDIVIDUAL STOCKS ON THE MOVE AS WELL. ALMOST NINE POINTS.
PUSHING EVER HIGHER. THANKS DOWN WITH A LITTLE BIT OF PROFIT-TAKING OR A CHANGE IN MUSIC. PUSHING THAT STOCK HIGHER THE PREVIOUS DAY. TO -- T-MOBILE GETTING A LITTLE BIT OF LOVE.
IT IS ONE OF THEIR TOP TECH NAMES OVER AT MORGAN STANLEY. LET'S DO IT AND GO BACK TO THE WORLD OF AI. ED: THE TOPIC OF THE DAY, THE MONTH, AND THE YEAR. LEADING SOME OF THE COMPANY'S LARGEST SCALE DATA SERVICES.
IF YOU ARE A CLOUD CUSTOMER WHO IS EITHER STORING OR PROCESSING DATA, THAT IS YOUR RESPONSIBILITY. >> I AGREE. THANK YOU FOR HAVING ME HERE. ED: WHY ARE YOU SO FOCUSED ON AI? >> OUR CUSTOMERS ARE ASKING US, HOW DO I CHANGE MY DATA STRATEGY? HOW DO I MAKE SURE THAT MY STRATEGY IS BEING DIFFERENTIATED? THAT IS WHAT CUSTOMERS WANT. ED: WE LEARNED THAT TRADING MODELS
ON THE THING THAT YOU WANT TO REFLECT YOUR OWN DATA IS KEY. STRONG ON AI, MACHINE LEARNING, BEHIND ON GENERATIVE AI. WHAT DO YOU MAKE OF THAT ARGUMENT? >> I DO NOT THINK THAT IS THE CASE.
WE HAVE CUSTOMERS WHO ARE DOING GENERATIVE AI. IF YOU LOOK AT THE CUSTOMERS THAT ARE PIVOTING QUICKLY AND MUNCHING WITH CAPABILITIES TODAY, THEY ARE LAUNCHING THEM ON A SHARED DATA SET AND THE TOOLS PROVIDED. SNAPE RECENTLY LAUNCHED A NEW FEATURE. THEY CAN ASK QUESTIONS ABOUT JOB INTERVIEWS AND WHAT MOVIE TO SEE. MY HIGHEST RUNNING ON GENERATIVE AI AND THEY ARE USING THEIR OWN DATA FOR THE TRAINING ITSELF. THEY WERE ABLE TO MOVE SO NIMBLY BECAUSE THEY HAD A CLOUD-BASED MODEL. HOW ARE YOU HAVING
CONVERSATIONS WITH THOSE THAT ARE NOT USING A CLOUD-BASED MODEL? ARE YOU SEEING THE NEED TO GET INTO IT? >> ABSOLUTELY. I QUESTION OF WHAT IS MY DATA STRATEGY IS JUST TOP OF MIND EVERYWHERE. IF YOU LOOK AT SOME OF THE CUSTOMERS, LOOK AT COX AUTOMOTIVE. IT HAS BEEN TRANSFORMING BE AUTO EXPERIENCED WITH AUTO TRADER AND THEY HAVE BEEN DOING A STRATEGY MODEL FOR MANY YEARS NOW. THEY STARTED BECAUSE OF BUSINESS ANALYTICS, BUT THEY FOUND THAT WHEN THEY CENTRALIZE THEIR DATA, THEY WERE ABLE TO MOVE THAT MUCH MORE QUICKLY INTO MACHINE LEARNING, COMPUTER VISION, AND NOW WHEN YOU ARE LOOKING AT AN IMAGE OF A CAR ON A COX PROPERTY, THAT MODEL WILL TELL YOU IF THAT IS A SHADOW IN THE PICTURE OR IF IT IS A SCRATCH. THAT IS AN INCREDIBLY IMPORTANT PART OF THE AUTO PURCHASING EXPERIENCE.
THOSE CUSTOMERS NEED TO START WITH THE RIGHT DATA STRATEGY AND MOVE AS QUICKLY AS THEY CAN TO ALL THOSE NEW TECHNOLOGIES. IS IT THOSE SORTS OF EXAMPLES THAT GET A POTENTIAL CUSTOMER COME TO YOU RATHER THAN MICROSOFT? IT FEELS LIKE MICROSOFT MANAGED TO TAKE SOME OF THE OXYGEN OUT OF THE ROOM WHEN IT CAME TO AI. >> THE THINGS THAT WE DO IS LISTEN TO OUR CUSTOMERS.
WE HAVE OVER 25 MACHINE LEARNING SERVICES TODAY AND THE LATEST THING THAT WE HAVE INTRODUCED IS AMAZON BEDROCK. LISTENING TO CUSTOMERS, WE KNOW THAT DATA HAS GRAVITY AND WE KNOW THAT OUR CUSTOMERS WANT TO BRING THEIR MACHINE LEARNING MODELS TO THE DATA. I WILL TELL YOU WHY THAT IS THE CASE. THINK ABOUT WHAT DATA THE
CUSTOMER HAS AND IT IS THEIR BAIT -- BUSINESS DATA, BUT IT IS A LOT OF THEIR CUSTOMER'S DATA. THEY DO NOT WANT TO TAKE THEIR CUSTOMER DATA AND BRING IT TO ANOTHER PROVIDER AND HAVE THAT OUT OF THEIR CONTROL. WITH BEDROCK, WHEN WE ARE TRAINING , THEY ARE TRAINING THEIR DATA ON A LOCAL COPY. THEY ARE ABLE TO TRAIN OFF DATA. THAT IS A HUGE DIFFERENTIATOR BECAUSE WE HAVE HUNDREDS OF THOUSANDS OF DATA LINKS RUNNING TODAY AND CUSTOMERS WANT TO START FROM THERE AND NOT SPIN OFF OF ALL THESE DATA SILOS. THEY NEED TO USE THEIR DATA TO
DIFFERENTIATE AND DO IT SAFELY WITH THE DATA GOVERNANCE THAT THEY NEED. FIRST HALF OF THIS YEAR, HAS THAT CONTINUED? >> THE KEYWORD IS OPTIMIZING. WHEN I TALKED TO CUSTOMERS, IT IS TRUE FOR ANY COMPANY IN THE WORLD RIGHT NOW. THEY ARE PRIORITIZING. ONE OF THE MOST IMPORTANT INVESTMENTS TO MAKE? THEY ARE PIVOTING WHAT THERE'S ENDING ON THE CLOUD TO FOCUS ON THAT AND MAYBE DEEP PRIORITIZING SOME OF THE OTHER INITIATIVES. ED: A KIND OF CRYSTALLIZED IN THE CONTEXT.
IT CAN MEAN MANY THINGS. PULLING BACK IN SOME AREAS, BUT ARE THEY TUNING UP IN GENERATIVE AI? >> WHEN I TALKED ABOUT THAT, IT IS SUCH AN ACCELERATOR. WHEN OUR CUSTOMER METERS TUNEUP ON GENERATIVE AI, THEY CAN DO IT THAT MUCH FASTER. AUTOMATING INSTANT RESPONSE.
THEY LAUNCHED THREE NEW GENERATIVE AI CAPABILITIES, AND THEIR ABILITY TO LAUNCH THAT WAS BASED ON THE FACT THAT THEY ARE TRAINING THEIR DATA ON A HUGE DATA SET. AMAZON S3 IS ALSO BEING USED FOR OTHER PRODUCTION BASED MACHINE LEARNING. THOSE THAT ARE ABLE TO PREVENT DO NOT HAVE TO COME UP WITH A NEW DATA STRATEGY.
THEY ARE STARTING FROM THAT DATA STRATEGY. ED: GET RID OF THAT WORD FOR A SECOND. CAROLINE: ULTIMATELY, WHAT IS THE COOLEST THING THAT YOU HAVE SEEN BILL THAT WOULD NOT HAVE BEEN POSSIBLE A YEAR AGO? A LOT OF THIS STUFF IS MACHINE LEARNING AI THAT WAS ALREADY PREDICTIVE IN NATURE. WHAT IS ACTUALLY NEW THAT YOU HAVE SEEN THAT COULD NOT HAVE BEEN DONE PREVIOUSLY? >> I HAVE THREE CHILDREN AND IF YOU -- IF YOU ASKED ME TO PICK MY FAVORITE CHILD, I DO NOT THINK I COULD DO THAT. THAT IS THE SAME WITH ALL THESE INNOVATIONS COMING OUT EVERYWHERE.
IF I LOOK AT THEM IAI CAPABILITY , IT IS REALLY TRANSFORMATIVE IN THE SOCIAL MEDIA SPACE. WE HAVE SO MANY DIFFERENT EXAMPLES. A GRAPHICS TOOL HAS OVER 135 MILLION MONTHLY ACTIVE USERS, AND THEY ARE GENERATING IMAGERY. I THINK THAT IS PRETTY AMAZING. IT IS COOL BUT THEY HAVE DONE WITH CODE WHISPER. THE IDEA THAT YOU CAN GENERATE CODE FROM EXISTING CODE, I THINK IT WILL BE TRANSFORMATIVE FOR HOW WE BUILD SOFTWARE IN THE FUTURE. ED: THANK YOU VERY MUCH. TESLA OFFERING THREE MONTHS OF
FAST CHARGING IN THE U.S. WITH THE GOAL OF CLEARING INVENTORY BY THE END OF THE QUARTER. WE'LL CLICK, WATCHING SHARES. THE COMPANY BOARD SAID THE OFFER TO TAKE THE I.T. SERVICES PROVIDER PRIVATE UNDERVALUES THE COMPANY. THE LATEST HURDLE WHEN THEY ATTEMPT TO BUY THAT BIG EUROPEAN TECH.
THIS IS BLOOMBERG. ♪ >> THIS IS A CHARGING STAND INVENTED BY TESLA. THIS IS ACC HAS CONNECTOR. IT STANDS FOR -- THIS IS FORD AND GM THEY ANNOUNCED THEY WOULD ADOPT THIS IN FUTURE MODELS AND THEY GET ACCESS TO THE TESLA CHARGE NETWORK. IT CREATED A U.S. WIDE CHARGE STANDARD. OTHERS FOLLOWED SUIT SAYING
THEY WOULD OFFER TECHNOLOGY THAT WORKED WITH CONNECTORS. HERE IS THE HISTORY. AUTOMAKERS SAY THEY WILL COLLABORATE ON THE COMBINED CHARGING SYSTEM.
THE GOAL, USE IT TO STANDARDIZE. MEANWHILE, TESLA DEVELOPS ITS OWN TECHNOLOGY THAT HAS BEEN USED SINCE 2012. THOSE CONNECTORS ARE LIGHTER, HALF THE SIZE AND CAN TRANSFER MORE POWER. THE NETWORK IS ALREADY BIGGER BUT THERE IS STILL SOME CONCERNS. ADVOCATES SAY IT IS NOT OPEN SOURCE AND HAS NOT BEEN PEER REVIEWED.
IT SEEMS TO BE TESLA'S WAY. ED: LET'S BRING IN DONNA. TESLA OFFERING FREE CHARGING. WHAT DO WE KNOW? >> IT IS NOT FREE. CUSTOMERS WILL HAVE TO PAY FOR IT, BUT WE HAD A BIG VALUE ADD FOR TESLA. CONSUMERS ARE NO LONGER WORRIED ABOUT RANGE ANXIETY. SO MUCH AS, IF I GO TO A CHARGING STATION, IS IT GOING TO WORK? BROKEN CHARGERS IS JUST NOT OK.
BEING ABLE TO KNOW THAT YOU CAN CHARGE WHEN YOU GO TO YOUR DESTINATION IS A BIG POINT FOR CONSUMERS. CAROLINE: THEY ARE STILL TRYING TO SELL CARS AND BEEF UP REVENUE STREAMS. WHAT DO THEY DO WITH WHAT THEY ARE NOT ABLE TO SHIFT RIGHT NOW? >> AIR OFFERING FREE SUPERCHARGING FOR ANYONE WHO TAKES DELIVERY OF A MODEL THREE BEFORE JUNE 30TH, WHICH IS THE END OF THE SECOND QUARTER. YOU ARE SEEING THE SUPERCHARGER BEING A LEVER THAT IS BEING POOLED TO HELP WITH DEMAND.
CAROLINE: ULTIMATELY, WHAT ARE YOU SAVING? >> IT DEPENDS ON WHAT YOU DRIVE. MOST CHARGE OVERNIGHT AT HOME. IT USED TO BE FREE WHEN TESLA WAS FIRST A COMPANY. NOW IT IS A COST, BUT IT IS FREE IF YOU BUY A CAR BEFORE THE END OF THE MONTH. ED: THE STORY HAS KIND OF CHANGED.
YOU WROTE THAT IT IS TESLA'S SHREWDEST PRODUCT. EXCITING SITE EARLY ON THAT CHARGING WAS GOING TO BE KEY TO CONSUMER ADOPTION. IT IS A STANDARD BY COMMITTEE AND WAS SLOW MOVING. THEY HAVE REALLY THEY HAVE THE DATA TO KNOW WHERE THEY NEED TO ADD MORE CHARGERS AND WHAT THE BIGGEST R.
THE BIG STATION ON THE ROUTE BETWEEN THE BAY AREA AND LOS ANGELES. OTHER CAR COMPANIES, THEY ARE RECOGNIZING THAT THE SUPERCHARGERS ARE BETTER, FASTER , AND THEY WORK. TESLA MAINTAINS THEM. OTHER CHARGING COMPANIES, IT IS
NOT CLEAR WHO MAINTAINS THEM. WHAT IS INTERESTING IS THAT THE DOMINANCE IS NOT THE CASE IN THE U.S. AND CHINA. IT IS SEEN AS THE BEST OUT THERE. CAROLINE: THANK YOU FOR SPENDING TIME WITH US. COMING UP, MICROSOFT AI
DOMINANT . LET'S TALK ABOUT HOW THE SILICON VALLEY -- SILICON VALLEY GIANT IS GOING. CAROLINE: TONIGHT WITH THE CHIEF TECHNOLOGY OFFICER AND REALLY GETS TO GRIPS WITH SOME OF THE POTENTIAL RISKS WITH WIDESPREAD ARTIFICIAL INTELLIGENCE. >> THERE IS CERTAINLY A RISK THAT WHEN WE HAVE THESE AI SYSTEMS THAT ARE ABLE TO SET THEIR OWN GOALS, THEY DECIDE THAT THEIR GOALS ARE NOT ALIGNED WITH OURS.
THEY DO NOT BENEFIT TO HAVING US AROUND AND LEADING TO HUMAN EXTINCTION. THAT IS CERTAINLY A RISK. ED: WATCH THE CIRCUIT. IN LEACHING TONIGHT, 10:00 P.M. TONIGHT, OR STREAM IT AT 8:00 P.M. EASTERN ON BLOOMBERG ORIGINALS. MUCH OF SILICON VALLEY IS
PLAYING CATCH-UP CHASING AFTER MICROSOFT. NOW IT IS PREPARING TO CASH IN ON THAT INVESTMENT. TODAY'S BIG TAKE. THIS TALK TO ME ABOUT THE LEAPFROGGING. GOOGLE HAD USE OF RESEARCH BUT
DID NOT WANT TO GO TOWARDS COMMERCIALIZATION. MICROSOFT ALONG THE WAY AND NOW EVERYTHING HAS CHANGED. >> THERE WAS A DECISION TO REALLY BET ON OPENAI AND TO PREMISE A LOT OF THE STRATEGY TO UNDERPIN A LOT OF ITS PRODUCTS, THE ENTIRE LOAD OF PRODUCTS IT HAS BEEN UNVEILING THE OPENAI TECHNOLOGY. THAT IS UNUSUAL NEW FOR MICROSOFT. WE TALKED TO A LOT OF PEOPLE
INSIDE AND OUTSIDE THE COMPANY. THEY HAVE NEVER RELIED ON AN OUTSIDE COMPANY. THAT IS A REAL DIFFERENCE, AND IT HAS MADE A DIFFERENCE FOR MICROSOFT BECAUSE IF YOU GO BACK A COUPLE OF YEARS, THEY HAD A LOT OF AI EFFORTS GOING ON BUT THEY DID NOT AMOUNT TO MUCH IN TERMS OF PRODUCTS. ED: IT ALSO THE HOTTEST STARTUP OUT THERE WHERE IF IN PRACTICE, IF IT IS A SUBSIDIARY OF MICROSOFT NOW. >> ACCORDING TO PEOPLE ALL THOSE DEALS WERE PUBLIC, OBVIOUSLY.
THERE IS A LITTLE BIT OF PARLOR GAMES GOING ON, ABOUT WHO IS THE CONTROLLING PARTY? IS MICROSOFT THE MORE IMPORTANT PARTY? TO A LARGE EXTENT, THEY ARE CODEPENDENT ON ONE ANOTHER. THE FUTURE OF BOTH COMPANIES IN SIGNIFICANT WAYS ARE TIED UP IN THE WORK OF THE OTHER ONE. ED: THERE IS A KEY CHARACTER IN THE STORY, KEVIN SCOTT. HE FINDS HIS WAY TO MICROSOFT THROUGH THE LINKEDIN ACQUISITION. IN 2019, HE BASICALLY GETS MICROSOFT'S ACT TOGETHER AND HOW THEY GO ABOUT TACKLING AI. >> THEY MADE KEVIN SCOTT THE CTO OF THE COMPANY.
THEY WANTED TO COME UP WITH A WAY FOR THE STRATEGY TO BE MORE FOCUSED AND COHERENT, AND MORE IMPACTFUL. KEVIN HAS A LONG-STANDING RELATIONSHIP AND ENDS UP BEING THE GO-BETWEEN OF THE NEGOTIATIONS BETWEEN THE COMPANIES. HE HAS SPENT A FAIR AMOUNT OF TIME IN GOOGLE. A LOT OF YOUR LISTENERS MIGHT THINK, MICROSOFT JUST GOT INTO AI, BUT MICROSOFT HAS BEEN WORKING ON AI FOR DECADES. SCOTT STARTED LOOKING AT ALL THE PRODUCTS AND LOOKED AT IT, THE REQUEST FOR GP USE FOR EVERY AI PROJECT IN THE COMPANY.
BASICALLY THE MAGNITUDE OF THE CAPITAL BUDGET. THERE WERE ALL THESE DISPARATE PROJECTS THAT DID NOT HAVE A BUSINESS MODEL AND WERE NOT TALKING TO EACH OTHER. AROUND 2019, THEY CAME UP WITH A PLAN TO INSTILL SOME DISCIPLINE AND MAKE SURE THAT THEY WERE MARCHING TOWARDS SOME BIG GOALS. ED: TERRIFIC, DEEP REPORTING. CHECK IT OUT ONLINE ON THE BLOOMBERG TERMINAL.
TALKING ABOUT COMMERCIALIZED TECHNOLOGY. THAT DOESN'T FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. WE ARE FOUR DAYS IN. FROM SILICON VALLEY AND NEW YORK, YOU CAN RECAP WHAT WE HAVE BEEN TALKING ABOUT ON THE BLOOMBERG PODCAST. FROM SAN FRANCISCO, THIS IS
BLOOMBERG TECHNOLOGY.
2023-06-20 03:02
