GTA 6 Trailer, ByteDance Deal | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE AT BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
GRAND THEFT AUTO SIX IS OUT WITH ITS OFFICIAL TRAILER AS IT TEASES LAUNCH IN 2025. WHAT IT MEANS FOR THE BOTTOM LINE IN THE GAMING INDUSTRY. ED: BYTEDANCE AND GO TO SAVING THE INDONESIAN TIKTOK SHOP IN WHAT MAY BE A TEMPLATE FOR OTHER E-COMMERCE MARKETS AROUND THE WORLD. CAROLINE: META AND IBM JOINT FORCE WITH 40 COMPANIES TO CREATE AN AI ALLIANCE. THE IMPLICATIONS AND OPEN-SOURCE FOCUS LATER THIS HOUR. THIS CHICKEN ON THE MARKETS. A MACRO PICTURE OF THE JOBS
DATA . A LITTLE COOLING, MUSIC TO THE FEDERAL RESERVE'S EARS. SELLOFF ABOUT .2% ON THE NASDAQ. WE ARE SEEING 10 YEAR YIELDS BACK DOWN AGAIN EIGHT BASIS POINTS AS PEOPLE ANTICIPATE MAYBE THE FED CAN CONTINUE TO BE MORE DOVISH. BITCOIN TEARING ITSELF AWAY FROM THE OTHER RISK ASSETS PUSHING HIGHER EVEN AS WE SEE STOCKS AND BONDS SELLOFF YESTERDAY AND DEFYING THE 72733. THIS WAS THE LONDON STOCK EXCHANGE. THE THIRD TECHNICAL FAULT IN THREE MONTHS. AN OUTAGE THAT IMPACTED CERTAIN
TECH NAMES THAT WE KNOW. ASOS TRADING. THEY HAD OUTAGES THROUGHOUT THE DAY. IT'S NOT LOOKING GOOD FOR THE LONDON STOCK EXCHANGE PARENT COMPANY. ED: ONE STORY THAT A LOT OF PEOPLE ARE TALKING ABOUT ONLINE IS GRAND THEFT AUTO SIX COMING IN 2025. WE WILL GET DETAILS FROM OUR REPORTER IN A SECOND. THERE IS EXCITEMENT BUT DISAPPOINTMENT IN SHARES OF TAKE-TWO INTERACTIVE, THE PARENT COMPANY OF ROCKSTAR, THE STUDIO MAKING GRAND THEFT AUTO VI. SALES ARE LOWER AND OF THE SALE
SIDE IS SAYING 2025? WHY SO FAR AWAY? WHY NOT SOONER? REMEMBER, THE TRAILER LEAKED AND TAKE-TWO HAD TO PUT OUT THE VERSION EARLIER THAN EXPECTED. THIS IS MASSIVE. THE PREVIOUS GENERATION OF GRAND THEFT AUTO, GRAND THEFT AUTO FIVE, HAS SOLD TENS OF MILLIONS OF COPIES AROUND THE WORLD. LET'S GET DETAILS AND BRING IN OUR VIDEOGAME REPORTER. GIVE OUR AUDIENCE ON BLOOMBERG TECHNOLOGY THE WHAT THEY NEED TO KNOW ABOUT GRAND THEFT AUTO SIX. >> GRAND THEFT AUTO SIX IS ONE OF THE MOST ANTICIPATED VIDEO GAMES OF ALL TIME. GRAND THEFT AUTO HAS BEEN
AROUND SINCE 1997. SINCE THEN IT HAS ONLY BECOME MORE POPULAR. GRAND THEFT AUTO V, HAS BEEN AROUND FOR 10 YEARS. OVER THAT TIME IT HAS SOLD OVER
190 MILLION COPIES AND GENERATED ALIENS IN REVENUE. GRAND THEFT AUTO VI HAS A LOT TO LIVE UP TO. FANS WERE HAPPY WITH THE TRAILER. IT LOOKED FANTASTIC. CAROLINE: THIS IS ALL ABOUT MORE IMMERSION, MORE ALMOST A CINEMATIC EXPERIENCE. AND A FEMALE PROTAGONIST. WHAT ELSE WAS IMPRESSING PEOPLE? >> GRAND THEFT AUTO VI RETURNS TO VICE CITY, A BELOVED LOCATION IN THE FRANCHISE. I SAW THE SHOT OF THE SKYSCRAPERS, THIS ONE IN PARTICULAR.
THE GRAPHICS LOOK SPECTACULAR. THERE IS A LOT OF EXCITEMENT AROUND THE FEMALE CO-PROTAGONIST FOR THE GAME. IT IS A VERY HIGHEST-TYPE DYNAMIC THAT WE MAY HAVE SEEN -- HEIST--TYPE DYNAMIC AND MOVIES THAT WE MAY HAVE SEEN THAT'S VERY POPULAR. ED: HOW THEY HANDLED THIS, IT IS NEVER SMOOTH. THERE WAS A LEAK. THEY WERE DO TO PUT OUT THE OFFICIAL TRAILER TUESDAY, TODAY, THIS MORNING.
THEY PUBLISHED EARLY. EXPLAIN THE ROLLOUT OF GRAND THEFT AUTO SIX. >> BECAUSE THE GAME IS SO ANTICIPATED LEAKS OR SOMETHING THAT WERE BOUND TO HAPPEN TO SOME DEGREE. THERE WAS A VERY LARGE LEAK OF GRAND THEFT AUTO SIX FOOTAGE A LONG TIME AGO.
UNFORTUNATELY FOR ROCKSTAR AND TAKE-TWO THE TRAILER FOR THIS GAME THAT WAS SO ANTICIPATED LEAK A DAY AHEAD OF WHEN IT WAS PLANNED. FANS SEEMED VERY HAPPY WITH THE TRAILER, BUT I'M SURE THAT DEVELOPERS WERE VERY DISAPPOINTED. CAROLINE: WE'LL HAVE TO SEE HOW THIS UNFOLDS AND ANTICIPATION UNTIL 2025. THAT WAS PERHAPS SOME IMPACT ON THE SHARE PRICE.
WE LOVE YOU JUMPING ON. LET'S GET MORE ON THE CONVERSATION FOR THE ENTIRE GAMING ECOSYSTEM. WE ARE PLEASED TO WELCOME AMY WU . SHE DID THE SAME AT LIGHT SPEED. YOU HAVE BEEN PLAYING GTA FOR MORE THAN DECADES. I'M INTERESTED IN WHAT YOU FEEL
ABOUT THE ROLLOUT AND WHY THESE THINGS TAKE SO LONG TO PRODUCE. AMY: THESE GAMES ARE INCREDIBLY DIFFICULT TO PRODUCE. AAA GAMES THESE DAYS, HIGH FIDELITY GAMES MADE BY STUDIOS LIKE ROCKSTAR, LIKE THE ACTIVISION BLIZZARD STUDIOS, THEY TYPICALLY TAKE OVER FIVE PLUS YEARS. THERE IS A LOT OF 3D MODELING. YOU CAN SEE FROM THE TRAILER
THE CINEMATIC GRAPHICS ARE VERY LIFELIKE. PEOPLE THAT THEY HAVE BEEN THE GAME, THE COMPLEXITY OF THE OPEN WORLD GAME WHERE PLAYERS CAN LET THEIR IMAGINATION RUN WILD AND SORT OF ENDLESS CONTENT. THESE THINGS TAKE A LONG TIME, YEARS OF DEVELOPMENT, HUNDREDS OF GAME DEVELOPERS. IN THE CASE OF GTA VI, THERE IS SPECULATION ABOUT THE COST TO DEVELOP.
GTA V WAS $200 MILLION AND IT IS POSSIBLY OVER FIVE TIMES THAT FOR GTA VI. ED: BACK TO THE NUMBERS ON GTA V. IT WAS RELEASED SEPTEMBER 2013, MORE THAN 10 YEARS AGO. 190 MILLION COPIES SOLD. $8.4 BILLION IN REVENUE.
IN THE LAST FISCAL YEAR TAKE-TWO DID $5.4 BILLION OVERALL. IT IS IMPORTANT. HOW HAS THE AUDIENCE CHANGED FROM SEPTEMBER 2013 UNTIL NOW?HOW HAS THE MARKET CHANGED ? AMY: I WOULD SAY THAT SINCE 2013, YOU ALREADY SEE THAT BY 2013, IN THE LAST 10 YEARS OF GAMING, YOU SEE MORE DIVERSITY OF THE TYPES OF PLAYERS TO COME INTO THE ECOSYSTEM. FIRST, THERE WAS THE RISE OF MOBILE GAMING WHICH BROUGHT IN A LOT OF FEMALES, OLDER PLAYERS. HISTORICALLY GAMING HAS BEEN
MALE-DOMINATED YOUNGER AUDIENCES THAT IS STILL A CORE AUDIENCE, BUT YOU CAN SEE FROM THE FEMALE PROTAGONIST AND THE MORE MOVIE-LIKE QUALITIES OF THE GAME THAT GTA HAS ALWAYS BEEN ABOUT ROLE-PLAYING. THEY REALLY WANT TO EMBRACE ALL TYPES OF DIFFERENT PLAYERS, THE DIFFERENT GAME EXPERIENCES. MAYBE SOME ARE MORE INTO DRIVING, MORE INTO SHOOTING, AND OTHERS MORE INTO RUNNING A STORE, ETC. THAT IS WHY IN GTA V THE ROLE-PLAYING WAS SO POPULAR. IT REALLY ALLOWED THE DIFFERENT TYPES OF GAMEPLAY FOR PEOPLE TO ALSO STREAM ON TIKTOK AND YOUTUBE AND OTHER PLACES. ED: 2013, THE PRODUCER JOHN HYLAND SAID DON'T FORGET RED DEAD REDEMPTION II.
GTA IS A GREAT GAME. WHAT DOES THIS MEAN FOR YOU? WHEN YOU SAW THE TRAILER AND YOU SAW THE ANNOUNCEMENT, WHAT WAS YOUR GENUINE REACTION? AMY: I WAS PUMPED JUST LIKE MOST PEOPLE. I PLAYED A LOT OF GTA GROWING UP . FOR ME IT WAS VICE CITY, WHICH
IS WHERE GTA VI IS SET. ED: BIG TIME. AMY: THIS TO FIND MY GAMING CHILDHOOD ALONG WITH A FEW OTHER TITLES. TO SEE SUCH AN INCREDIBLE FIDELITY I'M SURE WILL BE WAY MORE IMMERSIVE. PERSONALLY, IT IS THE MOST ANTICIPATED TITLE OF 2025 FOR ME AS WELL. CAROLINE: INTERWEAVE THEREFORE HOW PEOPLE
ARE PURCHASING WITHIN GAMES. HOW WE HAVE SEEN WEB THREE INTEGRATED SELF AND MANY, TO USE ANALOGIES, GAMING AND FORTNITE AND THE LIKE, WHAT DOES THIS SORT OF TITLE DUE TO THE COMPANIES YOU'RE LOOKING AT AND THE ECONOMICS OF THE COMPANIES YOU'RE LOOKING AT? AMY: THAT'S A REALLY GOOD QUESTION. WE INVEST IN EARLY-STAGE GAME STUDIOS AND GAMING TOOLS. I WOULD SAY THAT THESE DAYS AAA
GAMES LIKE GTA VI DO COMMAND HUNDREDS OF MILLIONS OF DOLLARS OF DEVELOPMENT COSTS. AS A VENTURE INVESTOR, THE CAUTION THAT WE HAVE ALL THE TIME IS HOW DOES A NEW STUDIO COMPETE AGAINST THE BUDGETS THAT THESE LARGE STUDIOS HAVE? ALSO, BECAUSE THEY ARE LAUNCHING THE NEXT GAME IN A FRANCHISE THAT IS ALREADY BELOVED BY MILLIONS OF PLAYERS VERSUS A YOUNG STUDIO LAUNCHING A NEW IP. WE THINK ABOUT THAT WHEN WE ARE INVESTING IN GAMES. I THINK THAT THE BAR IS VERY HIGH. STARTED STUDIOS HAVE TO GO
AFTER GAME CONCEPTS THAT ARE EITHER ON TOP OF THE NEW PLATFORM, LIKE ROBLOX, OR THE ARVR, OR CREATING A NEW GENRE OR DOING SOMETHING VERY SPECIAL TO BREAKOUT IN A VERY COMPETITIVE LANDSCAPE. ED: THERE IS ALSO A DISCUSSION ABOUT THE ROLE OF GENERATIVE AI TECHNOLOGY IN THE DEVELOPMENT. I WONDER IF GAMES LIKE GTA VI WILL BE THE LAST BIG TITLES WHERE MULTI-YEAR DEVELOPMENT IS JUSTIFIED? IS THAT AN AREA THAT YOU'RE LOOKING AT? GENERATIVE AI AS A WAY TO SPEED UP HOW QUICKLY NEW GAMES CAN COME TO MARKET? AMY: ABSOLUTELY. AS A VENTURE INVESTOR I'M VERY EXCITED ABOUT AI TOOLS AND GENERATIVE AI TOOLING THAT CAN LOWER THE COST OF CONTENT DEVELOPMENT, WHICH IS THE MOST EXPENSIVE PART OF GAME MAKING. HOPEFULLY THAT GIVES A LEG UP
FOR CERTAIN STUDIOS. YOU HAVE TO CONSIDER THAT WHEN JEN AI TOOLS BECOME MORE MATURE SCREENING GAME ASSETS OR CHARACTERS, THEY WILL BE MOST LIKELY ADOPTED BY YOUNG STUDIOS AND INCUMBENT STUDIOS LIKE. WE WILL CONTINUE TO SEE LONG MULTI-YOUR GAME CYCLES FOR YEARS TO COME, BUT HOPEFULLY THAT COMES DOWN WITH THE INVENTION OF THESE TOOLS. CAROLINE:
BROADEN OUT, WE HAVE SEEN GEOGRAPHICALLY INTERESTING REGULATORY HURDLES. FOR EXAMPLE, CHINESE GAME MAKERS HAVE BEEN SUFFERING OR HAVING TO JUMP ACROSS, WHETHER YOU THINK IT IS POSITIVE OR NOT, BUT THESE TOOLS, WILL THEY BE GLOBAL AND MAKING? THE STUDIOS YOU ARE LOOKING AT INVESTING IN, DO THEY NEED TO HAVE A GLOBAL OFFERING AT THIS MOMENT? AMY: I THINK THE MOST SUCCESSFUL GAMES TODAY DO APPEAL TO GLOBAL AUDIENCES. WHEN WE THINK ABOUT GLOBAL AUDIENCES, WE THINK ABOUT GAMER TASTES. WESTERN GAMERS OFTEN HAVE DIFFERENT TASTES AND GAME STYLES HOW GAMES ARE MONETIZED THAN EASTERN PLAYERS. STUDIOS NEED TO THINK ABOUT DIFFERENT PREFERENCES AND DIFFERENT DEMOGRAPHICS DIFFERENT BY REGION.
THAT'S MORE IMPORTANT THAN EACH COUNTRY ALONE. ALSO, WITH THE WILLINGNESS TO PAY IS FOR PLAYERS IN DIFFERENT MARKETS. ED: AMY WU, VIDEO PARTNER, GREAT ON A DAY LIKE TODAY TO HAVE YOU ON THE SHOW. COMING UP ON BLOOMBERG TECHNOLOGY, WE WILL LOOK AT THE IMPACT OF THE ISRAEL-HAMAS WAR ON ISRAEL'S TEXT -- TECH SECTOR WITH A GIANT IN THAT COUNTRY'S MARKET.
HE IS IN TOWN, SOME PRETTY KEY MEETINGS AS WELL. CAROLINE: WE ARE GOING GLOBAL BECAUSE THERE IS A TRANSATLANTIC CONVERSATION AT THE MOMENT WITH NOKIA AND ERICSSON. ERICSSON HAS BEATEN OUT NOKIA, WHEN IT COMES TO OFFERINGS TO AT&T, IT'S NOTABLE THAT AT&T IS A 14 BILLION DOLLAR DEAL. AT&T WANTS TO MODERNIZE ITS WIRELESS NETWORK AND IT HAS TAPPED TO ERICKSON TO DO SO. SHARES OF NOKIA ARE REALLY HURT
HARD IN EUROPEAN TRADING. THIS IS BLOOMBERG TECHNOLOGY. ED: THE LATEST ON THE ISRAEL-HAMAS WAR. ISRAEL'S GOVERNMENT SAYS IT PLANS TO OFFER WHATEVER FINANCIAL SUPPORT AND OTHER ASSISTANCE IS NEEDED TO PROTECT THE COUNTRY'S TECH STARTUP INDUSTRY FROM IMPACTS OF THE WAR. ISRAEL IS EXPANDING MILITARY OPERATIONS IN SOUTHERN GAZA EVEN AS U.S. OFFICIALS ARE GROWING UNEASY ABOUT THE WAR'S TOLL ON CIVILIANS. WE WANT TO BRING YOU THE COFOUNDER AND GENERAL PARTNER OF ISRAEL'S LARGEST TECH INVESTMENT GROUP. $5 BILLION IN ASSETS UNDER
MANAGEMENT. HE WAS APPOINTED BY THE ISRAELI GOVERNMENT TO CHAIR THE NATIONAL TASK FORCE FOR THE ADVANCEMENT OF THE EDUCATIONAL SYSTEM. YOU ARE IN SAN FRANCISCO AND SILICON VALLEY FOR A SERIES OF MEETINGS WITH YOUR INDUSTRY. WHAT BRINGS YOU TO THE WEST COAST AND WHO HAVE YOU BEEN MEETING WITH? >> I HAVE BEEN A FREQUENT VISITOR TO SILICON VALLEY FOR 40 YEARS. I AM ON THE BOARD OF UNITY YOU SPOKE ABOUT GAMES. A LOT OF THE GAMES ARE POWERED BY UNITY. I HAVE SEVERAL PORTFOLIO
COMPANIES AND WE HAVE A BIG CONFERENCE HERE. A LOT OF THE RELATIONSHIPS. I AM A FREQUENT VISITOR TO SILICON VALLEY AND THE AREA. ED: IN THE CONTEXT OF THE ISRAEL-HAMAS WAR, WHAT ARE THE CONVERSATIONS THAT YOU ARE HAVING RIGHT NOW? >> WE ARE OVERWHELMED BY THE AMOUNT OF SUPPORT. ISRAEL WAS ATTACKED BY A TERRORIST ORGANIZATION CLOSE TO ISIS. WE HAD OVER 1000 CIVILIANS SLAUGHTERED.
WE ARE GETTING A LOT OF AMAZING SUPPORT FROM EVERYONE WE TALKED TO. IN THE TECH ECOSYSTEM WITH THE WESTERN LEADERSHIP WE ARE SEEING PRO-PALESTINIAN DEMONSTRATIONS IN LONDON AND OTHER AREAS, BUT THEY ARE MOSTLY BY PEOPLE NOT AWARE OF THE SITUATION. THAT HAS NOTHING TO DO WITH ISRAEL AND PALESTINE. IT HAS TO DO WITH RADICAL ISLAMIST TERROR.ISRAEL HAS LAUNCHED THIS WAR IS A DEFENSE. I SPOKE WITH MY WIFE. WE HAD MISSILES SHOT INTO TEL AVIV. THIS HAS BEEN HER REALITY.
ISRAEL HAS NO CHOICE BUT TO GO OUT AND WITH THE HEARTBREAKING NEWS COMING OUT OF GAZA WE NEED TO ELIMINATE THIS RISK AND REMOVE HAMAS SO THAT THEY CANNOT BE ANY MORE THREAT IN OUR COUNTRY. CAROLINE: HAMAS IS A DESIGNATED TERROR ORGANIZATION IN THE U.S. AND EU, BUT WE MOVE ASIDE FROM WHAT PROTESTS PEOPLE ARE AT, FLAGS THEY ARE FLYING, TO FOCUS ON WHAT IS BEING BUILT FROM A TECHNOLOGY PERSPECTIVE.
WE HAVE SPOKE TO THOSE WHO HAVE FUNDED PALESTINIAN COMPANIES BUILT IN GAZA AND THOSE WHO ARE BUILDING IN ISRAEL. ISRAEL IS SO FOCUSED ON THE GDP PERSPECTIVE ON THE ECONOMY OF TECHNOLOGY. THE STARTUPS. IT'S INTERESTING TO NOTE THAT $100 MILLION IN A PUBLICLY FUNDED AGENCY MONEY WILL BE ROLLED OUT BY THE ISRAEL INNOVATION AUTHORITY. IF YOU'RE GOING TO GET THAT GRANT, IF YOU'RE GOING TO BE ABLE TO ACCESS THAT $100 MILLION, YOU HAVE TO BASICALLY GET MATCHING FUNDS FROM THE PRIVATE SECTOR. HOW WILLING ARE VC'S, THE STARTUP COMMUNITY TO INVEST IN ISRAEL RIGHT NOW? SHLOMO: THE TECH ECOSYSTEM IN ISRAEL IS SECOND ONLY TO THE UNITED STATES. WE ARE THE THIRD-LARGEST
ECOSYSTEM THAT INVESTS IN GENERATIVE AI. INVESTORS INVESTING IN ISRAEL ARE USED TO THE FACT THAT ISRAEL HAS A CONFLICT AND WE LIVE IN A COMPLICATED AREA. WE HAVE SEEN CONTINUED SUPPORT OF ISRAELI TECH.
WE HAVE SEEN TWO RECENT ACQUISITIONS BY PALO ALTO SECURITIES OF AN ISRAELI COMPANY TWO WEEKS AGO. WE ARE SEEING INVESTMENT. OBVIOUSLY, THE FACT THAT PEOPLE DON'T COME TO ISRAEL OR GO OUT OF THES -- GO OUT OF ISRAEL IS FREQUENTLY SLOWS IT DOWN. WE JUST RAN A BIG CAMPAIGN ON
NASDAQ AND WE HAD A BIG ILL BOARD ON TIMES SQUARE SAYING THAT WE DELIVER NO MATTER WHAT. ISRAELI COMPANIES ARE VERY USED TO THE SITUATION, BUT EVEN THE INVESTORS ARE CONTINUING TO INVEST. WE JUST COMPLETED TWO INVESTMENTS IN THE LAST TWO WEEKS. WE ARE DOING INVESTMENTS WITH
OUR U.S. COLLEAGUES. EVEN OUR E EMMA RATI COLLEAGUES ARE CONTINUING TO INVEST. WE ARE RUNNING ABOUT $6 BILLION OF INVESTMENTS PER YEAR. I EXPECT THIS WOULD BE VERY
CLOSE TO THAT ANNUAL NUMBER. CAROLINE: WELL SAID. IT WAS ABOUT 5.5 BILLION RAISED LAST YEAR ALONE IN ISRAEL. 100 MILLION SEEMS BARELY ANYTHING. SHOULD THE GOVERNMENT, SHOULD THE ISRAEL INNOVATION AUTHORITIES BE DOING MORE TO HELP INCENTIVIZE PRIVATE MONEY, OR IS THAT NOT NECESSARY? SHLOMO: I DON'T THINK IT'S NECESSARY. I DON'T BELIEVE IN GOVERNMENT SUBSIDIZING INVESTMENTS IN TECHNOLOGY.
100 MILLION DOLLARS IS IMPORTANT BUT ONLY DIRECTED TOWARDS VERY YOUNG COMPANIES THAT DON'T HAVE ENOUGH PRIVATE SECTOR FUNDING. IT'S A SMALL PORTION. WE OURSELVES ARE MANAGING BILLIONS OF DOLLARS, MORE THAN THE GOVERNMENT CAN DO. I THINK THE GOVERNMENT WOULD NEED TO ALLOW THE CONDITION FOR ISRAELI TECH TO CONTINUE AND THRIVE BY SUPPORTING THINGS LIKE EDUCATION, UNIVERSITY RESEARCH, ETC. THE PRIVATE SECTOR IN ISRAEL IS EXTREMELY STRONG, AND I DON'T THINK WE ARE SO MUCH DEPENDENT ON THE ISRAELI GOVERNMENT.
ED: WHEN THE WAR STARTED ONE OF THE THINGS THAT CAROLINE AND I DISCUSSED ON THE PROGRAM WAS THE WORKFORCE, INTEL, NVIDIA, MICROSOFT, GOOGLE HAD MANY EMPLOYEES THEY AWAY FROM THE PRIVATE START UP ECOSYSTEM. MOBILE IS THE MOST VALUABLE. WHAT WILL BE THE TECHNOLOGY STORY FOR ISRAEL GOING FORWARD THE MEDICALLY OR IN A SPECIALIZED DISCIPLINE? SHLOMO: ISRAEL HAS BEEN VERY AGILE. WHEN YOU LOOK AT THE INNOVATION CYCLES, AND I'VE BEEN HERE FOR A LONG TIME, WE HAD CELLULAR, THE INTERNET, THE MOBILE SOCIAL CLOUD, AND NOW AI. ISRAEL IS IN THE FRONT IN AI INVESTMENT WITH OVER $3 MILLION ONLY IN GENERATIVE AI STARTUPS IN THE LAST THREE YEARS. SECOND ONLY TO THE U.S.
AND CHINA, ALTHOUGH CHINA YOU NEVER REALLY KNOW WITH THE REAL NUMBERS ARE. WHEN YOU THINK ABOUT ALL OF THE VALUE CREATED BY MY DEAR FRIEND BASED ON AI ABILITIES TO UNDERSTAND VISUAL PICTURES AND PROCESS BILLIONS OF DATA POINTS IN NANOSECONDS AND MAKE VERY INTELLIGENT DECISIONS. I THINK THE AI WILL BE THE MAIN DRIVING FORCE. ENTERPRISE I.T. INNOVATION WILL BE VERY IMPORTANT.
A LOT OF THE INNOVATION THAT WE'VE SEEN TODAY HAS TO DO WITH THE CONSUMER. WHEN YOU THINK ABOUT SOCIAL AND CLOUD, THIS HAS EVOLVED AROUND THE CONSUMER LIFE. I THINK THAT IT'S TIME THAT WE SEE CONSTRUCTION, READ CULTURE, AUTOMOTIVE, AEROSPACE, GOING THROUGH THE SAME INNOVATION.
I'M SURE THAT ISRAEL WILL LEAD THE WAY. ED: THE COFOUNDER AND GENERAL PARTNER OF DOVRAT, THANK YOU FOR VISITING US. CAROLINE: I FIRST OF ITS KIND PARTNERSHIP HAPPENING. BYTEDANCE TEAMING UP WITH INDONESIA'S GO TO FOR THE TIKTOK SHOP PLATFORM NEXT. ED: IT IS TIME FOR TALKING TECH. THE FORMER EMPLOYEE OF APPLE
SUPPLIER IN CUSTODY OF JAPANESE POLICE. HE WAS ARRESTED FOR STEALING TRADE SECRETS. HE IS BELIEVED TO BE A CHINESE NATIONAL. HE IS WORKING WITH AUTHORITIES BUT DECLINED TO PROVIDE MORE DETAILS. CHINA IS PUSHING BACK AGAINST
REMARKS MADE BY U.S. COMMENTARY SECRETARY GINA RAIMONDO. SHE CALLED FOR MORE FUNDS TO CURB CHINA'S ABILITY TO MAKE CHIPS. THE CHINESE FOREIGN MINISTRY RESPONDED SAYING THAT THE U.S. SHOULD "STOP SEEING CHINA AS A HYPOTHETICAL ENEMY." BYTEDANCE REACHING A DEAL TO
INVEST IN AN ONLINE SHOPPING SERVICE RUN BY GOTO. DETAILS OF THE PARTNERSHIP ARE BEING WORKED OUT BUT THE PAIR FAVOR WORKING TOGETHER RATHER THAN AGAINST EACH OTHER. TEAMING WITH THE GOTO COULD BE A FIRST STEP IN THE TEMPLATE OF GROWTH FOR THE TIKTOK SHOP IN SOUTHEAST ASIA AND AROUND THE WORLD. THAT SEEMS TO BE THE STORY YOU CAN DO ONE EXAMPLE OF COOPERATIVE WORKING IN ONE MARKET PLACE AND THEN TRY TO GET AROUND OTHER REGULATORY HURDLES IN OTHER MARKETS. CAROLINE:
HOW DOES THIS SPEAK TO WHAT ELSE WILL OCCUR IN SOUTHEAST ASIA? GOTO GETTING SYNERGIES OF 125 MILLION ACTIVE USERS IN INDONESIA ON TIKTOK, HOW WILL THEY LEVERAGE THAT? WHAT IS IT MEAN FOR COMPETITORS? THAT IS A GREAT ANALYSIS OUT OF BLOOMBERG INTELLIGENCE. ED: A LITTLE ABOUT THE CRYPTO RALLY AT WHAT IT MEANS FOR INVESTING IN THE SPACE. CAROLINE: CHECKING OUT SHARES OF CHARTER COMMUNICATIONS SINKING ABRUPTLY DOWN 8%. THE CFO WAS PARTICIPATING IN
THE UBS GLOBAL MEDIA AND CAROLINE: WELCOME BACKCAROLINE:. ED: A QUICK CHECK IN ON THE MARKETS, SOME TV NEWS THAT STRIVING MARKETS. TESLA REBOUNDING IN A BIG WAY. UP 3%, SNAPPING FOUR STRAIGHT DAYS OF DECLINES, ITS LONGEST LOSING STREAK SINCE AUGUST. WE STARTED ON NEWS THAT UNIONS IN DENMARK WERE ADDING TO THE UNION EFFORTS AGAINST TESLA IN THE NORDIC REGION. TESLA HAS BEEN NEGOTIATING OVER A BARGAINING AGREEMENT.
IT WAS WEIGHING ON THE STOCK EARLIER IN THE SESSION IN PREMARKET. NOT SO NOW. NE-YO IS INTERESTING. THE MARKET IS CHEERING ITS COST-CUTTING EFFORTS. IT HAD A NARROWER THAN EXPECTED LOSS BUT HAS CUT ITS OUTLOOK FOR THE NUMBER OF EV'S IT WILL DELIVER.
IT'S A NAME THAT WE TRACK NOT BECAUSE THEY ARE DELIVERING IN THE U.S., BUT OUTSIDE OF CHINA THEY HAVE EXPANDED INTO MARKETS LIKE EUROPE. IN THE CRYPTO SPACE, WHILE WE HAVE BEEN ON THE AIR BITCOIN HAS PUSHED HIGHER THROUGH 43,000 U.S. DOLLARS, CONTINUING TO TRADE
BASICALLY AT ITS HIGHEST LEVEL SINCE APRIL OF 2022 GIVEN A DAY OR TWO. OVER THE LAST 24 HOURS IN THE RISK ASSET CONTEXT, EQUITIES HAVE BROADLY BEEN LOWER, BUT WHO CARES? BITCOIN CONTINUES TO MARCH HIGHER. CAROLINE: A LOT OF THAT HAS TO DO WITH ANTICIPATION OF A BITCOIN ETF AND MANY INDOCIN CRADDICK THINGS AROUND BITCOIN. LET'S TALK ABOUT SOME OF THE LIFE IT IS BREATHING INTO THE SPACE. OF COURSE, YOU ARE ABOUT THE PICKS AND SHOVELS AROUND BITCOIN ENSURING THAT IT CONTINUES TO BUILD AN ECOSYSTEM. I AM INTERESTED IN WHAT THE PRICE POINT MEANS FOR YOU.
I AM SURE THAT INSTITUTIONAL INTEREST MUST BE BULLYING YOUR PARTICULAR PART OF THE MARKET -- BUOYING YOUR PARTICULAR PART OF THE MARKET? SHLOMO: FOCUSED ON -- >> FOCUSED ON INNOVATION AND SPACE AND COMPANIES BUILDING IN THE SPACE. ALL OF THAT ALSO OFFERS TAILWINDS FOR BITCOIN'S PRICE. THERE IS A BIT OF REINFORCEMENT. IN BITCOIN'S PRICE NOW WE ARE SEEING THE TAILWINDS A BITCOIN PRICE ADOPTION AND MACROECONOMIC FACTORS AT PLAY. AS YOU NOTED, THERE ARE TWO IMPORTANT PENDING EVENTS THAT ARE ALSO DRIVING PRICE APPRECIATION HERE, WHICH IS THE PENDING APPROVAL OF THE BTC SPOT ETF, AND THE BITCOIN HAVING IN Q2 OF 2024.
IT'S A REDUCTION IN THE REWARD EARNED BY MINORS FOR SECURING THE NETWORK. THAT HAS BEEN HISTORICALLY BEEN LINKED TO PRICE APPRECIATION. THE BACKGROUND OF THAT IS COMPANIES BUILDING IN THE SPACE AND TECHNOLOGICAL ADVANCEMENTS HAPPENING FOR BITCOIN WHICH WILL FURTHER DRIVE ADOPTION. ED: THE MECHANISM IS THE UNKNOWN, BUT IF WE EXCEPT THAT THE INSTITUTIONAL MONEY IS NOW COMING IN, AND THEY FOUND ENTRY POINTS TO BUY INTO BITCOIN, DO YOU HAVE ANY FORECAST OR SENSE OF WHERE YOU FEEL THAT BITCOIN WILL GO FROM THIS POINT OVER THE NEXT 12 MONTHS? >> IT IS HARD TO MAKE ACCURATE PRICE PREDICTIONS. THERE ARE IMPORTANT PSYCHOLOGICAL AND CULTURAL MILESTONES LIKE THE $100,000 MARK FOR BTC.
WHAT IS IMPORTANT IS THAT WE HAVE REACHED NEAR ALL-TIME HIGHS IN TERMS OF THE SUPPLY NOT MOVING. THAT MEANS THAT BITCOIN, PEOPLE HOLDING BITCOIN, INSTITUTIONS AND INDIVIDUALS, AREN'T SELLING. NEARLY 70% OF BITCOIN IN CIRCULATION HASN'T MOVED IN A YEAR OR MORE.
THAT WILL OF COURSE PROVIDE SOME SUPPORT ON THE FLOOR AS BITCOINS PRICE CONTINUES TO APPRECIATE. INSTITUTIONAL INTEREST IS NOT JUST FOR BTC, THOUGH WE HAVE SEEN THAT LEADING UP TO THE CYCLE AND WE WILL CONTINUE TO SEE THAT GROW IN THIS CYCLE, BUT IT'S ALSO FOR THE ADOPTION OF BITCOIN TECHNOLOGIES AS WELL. WHAT HAS BEEN EXCITING TO SEE PROGRESS IN BITCOINS BEAR MARKET, WHAT LED US TO THIS POINT TODAY, IS THAT TECHNOLOGICAL ADVANCEMENTS ARE COMING INTO ALLOW GREATER ENTERPRISE ADOPTION OF BITCOIN, LAYER 1 AND 2 TECHNOLOGIES. I MEAN ADVANCEMENTS IN TECHNOLOGIES SUCH AS ASSETS PROTOCOL, A PROTOCOL DESIGNED AND INTRODUCED BY PORTFOLIO COMPANY THAT ALLOWS DIGITAL ASSETS TO TRADE ON THE LIGHTNING NETWORK. AND ALSO ADVANCEMENTS IN NON-BITCOIN CRYPTO TECHNOLOGIES, WHICH CAN NOW BE APPLIED TO BITCOIN AND ALLOW FOR MORE COMPLEX CONTRACTS TO BE EXECUTED ON BITCOIN. CAROLINE: LET'S TALK ABOUT SMART CONTRACTS IN PARTICULAR BECAUSE THAT IS WHAT EVERYONE HAS LOOKED TO A CERIUM FOR.
MANY WOULD SAY THE BITCOIN HAS BEEN THE OG IN THE SPACE THAT YOU WOULD PUT MONEY AS AN ASSET. THE PROBLEMS BEING SOLVED ARE OFTEN THOUGHT OF AS ELSEWHERE WHEN YOU'RE TRYING TO DRIVE DOWN TRANSACTIONS COSTS AND SPEED UP TRANSACTIONS AS WELL. HOW ARE YOU SEEING THAT APPLIED TO THE BITCOIN ECOSYSTEM? MANY WOULD SAY THAT IS ETHEREU M'S JOB. ALYSE: IT IS IMPORTANT TO NOTE ONE OF THE THINGS THAT HAS DISTINGUISHED BITCOIN FROM CRYPTO IS THAT BITCOIN HAS OPTIMIZED FOR SECURE, STABLE, DEPENDABLE PROTOCOL. WITH THAT ALLOWS FOR INDIVIDUALS AND ENTERPRISE IS TO ENGAGE WITH BITCOIN, THE ASSET OR THE TECHNOLOGY, IN A WAY TO BE SURE THAT THINGS AREN'T GOING TO FUNDAMENTALLY CHANGE. YOU CAN PAUSE FOR FIVE YEARS, COME BACK AND FIND YOUR BITCOIN SECURED BY EXACTLY THE SAME SYSTEMS WITH THE SAME EXACT RULES.
THAT IS VERY DIFFERENT FROM ETHEREUM OR OTHER PROTOCOLS. WHAT IS INTERESTING IS WE HAVE SEEN ENTERPRISE USE ETHEREUM OR OTHER ALTCOIN PROTOCOLS AS A TEST NETWORK FOR BITCOIN AS TECHNOLOGIES THAT ALLOW SMART CONTRACT EXECUTION ON BITCOIN HAVE MATURED. I MENTIONED IT CK ROLL UP'S EARLIER. THAT ALLOWS SMART CONTRACT VERIFICATION AND COMPUTE TO HAPPEN OFF OF THE BLOCKCHAIN. WHEN ETHEREUM WAS INTRODUCED
WITH THE PREMISE OF PROVIDING MORE COMPLEX TO THE CRYPTO WORLD, ZK ROLLUPS WERE LESS MATURE THAN TODAY. IN THE YEARS PAST THERE HAS BEEN SIGNIFICANT ADVANCEMENT IN THE PLACE THAT ALLOWS FOR ZK ROLLUPS TO BE APPLIED IN THE BITCOIN ENVIRONMENT. IT ALLOWS THEM TO MOVE FROM THIS ETHEREUM TEST THAT ON TO A MORE SECURE PROTOCOL WHILE MAINTAINING THE SAME DESIGN FACE AND FUNCTIONALITY. IT'S IMPORTANT BECAUSE IN ORDER TO OFFER AN ENTERPRISE GRADE SOLUTION YOU NEED NOT ONLY THE FUNCTIONALITY, BUT THE SECURITY OF THE LEDGER IN WHICH OF THOSE CONTRACTS WILL BE EXECUTED AND REPORTED TO. I SUSPECT WITH THESE SORTS OF
ADVANCEMENTS, WHAT WE WILL SEE IS A GREATER ADOPTION WITH GREATER DEPTH AT THE ENTERPRISE LEVEL, WHERE THESE TECHNOLOGIES ARE USED FOR CORE BUSINESS PRACTICES OR THE DEVELOPMENT OF MORE SOPHISTICATED PRODUCTS FOR RETAIL. ED: GREAT TO CATCH UP WITH YOU ON BLOOMBERG TECHNOLOGY. AS A REMINDER TO THE AUDIENCE, BITCOIN IS PASSING THROUGH 43,000 U.S. DOLLARS WHILE WE HAVE BEEN ON
THE AIR. PHOENIX JUMPS 35% ON ITS ABU DHABI DEBUT. THE FIRST CRYPTO-RELATED LISTING IN THE MIDDLE EAST GIVING THE 6-YEAR-OLD COMPANY A MARKET CAP OF 12.3 BILLION, ABOUT 3.3 BILLION U.S. DOLLARS. IT CLOSED OUT FROM THE IPO PRICE OF 150. PHOENIX ALSO OPERATES CRYPTO DATA CENTERS AND IT RECENTLY SET UP THE UAE FIRST FULLY REGULATED DIGITAL ASSET EXCHANGE. CAROLINE:
COMING UP, WE WILL TALK THE WORLD OF AI. CHATGPT FOR VIDEO, THE LAUNCH OF PIKA LABS. HOW IS HE LOOKING TO DEMOCRATIZE THE MAKING OF VIDEO AND NOT JUST PODCASTING? AIRBNB SHARES, A CHANGING OF THE GUARD, A SHUFFLE UP. THIS AS WE SEE A NEW CFO NAMED. SHE HAS BEEN WITH THE COMPANY FOR 11 YEARS. THE CURRENCY CFO IN JANUARY IS TAKING ON A NEW ROLE OF OVERSEEING BUSINESS STRATEGY, HOME SHARING OVERSEAS. FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY.
ED: AI VIDEO STARTUP PICO LAB'S -- PIKA LABS STARTS WITH THE MISSION TO ALLOW EVERYONE TO BE THE DIRECTOR OF THEIR OWN STORIES AND BRING OUT THE CREATOR IN EACH OF US. LIGHTSPEED VENTURES' PARTNER JOINS US NOW WITH MORE. IT IS NOT THE ONLY COMPANY THAT DOES THIS. AS AN EXAMPLE. WHY DO YOU HAVE SUCH CONVICTION THAT THEY ARE THE BEST TOOL, GENERATIVE AI FOR CONTENT CREATION? >> EVERYONE ON THE INTERNET WANTS TO BE ABLE TO CREATE CONTENT. WE HAVE BEEN CREATING MORE CONTENT AS CREATION HAS BECOME DEMOCRATIZED BY TECHNOLOGY AND SOFTWARE, BUT VIDEO REMAINS REALLY HARD.
THAT'S WHY WE ARE SO EXCITED BY PIKA, WHICH IS TARGETING ALL OF US REGULAR PEOPLE AS OPPOSED TO OTHER PRODUCTS TARGETING MORE PROFESSIONALS AND ENTERPRISES. THAT IS WHY WE THINK THAT THE OPPORTUNITY IS SO MASSIVE. CAROLINE: YOU BACK A LIGHTSPEED STABILITY AI THAT IS DOING SIMILAR THINGS.
WE HAVE META AND GOOGLE THAT I'M SURE WILL BE INTERESTED IN CREATING VIDEO. IS IT ABOUT A TEAM? IS IT HOW THEY'VE ULTIMATELY SHOWN MORE DEEP TECH EXPERTISE? WHAT STANDS THEM APART? MICHAEL: IF YOU LOOK AT THE COMPANIES THAT HAVE GENERATED MASSIVE AMOUNTS OF VALUE LIKE OPENAI THROUGH CHATGPT AND MID JOURNEY'S IMAGING MODEL, THESE COMPANIES COMBINE THEIR OWN FOUNDATIONAL MODEL WITH CONSUMER APPLICATION. THAT CREATES AN INCREDIBLE FEEDBACK LOOP OF CONTENT BEING CREATED AND DELIVERED DIRECTLY TO THE USERS. PIKA HAS THEIR OWN VIDEO MODEL
AND OWN CONSUMER APPLICATION. WE THINK THAT THERE IS AN INCREDIBLE MODE TO BE BUILT THROUGH THAT APPROACH. CAROLINE: AND I ASSUME AN INCREDIBLE AMOUNT OF MONEY. HOW ARE WE THINKING ABOUT CHARGING? WE KNOW HOW COSTLY IT IS TO BUILD THIS SORT OF TECHNOLOGY. GETTING GEN Z IN PARTICULAR PART WITH MONEY? MICHAEL: I DON'T WANT TO SPOIL ANY SURPRISES, BUT GOING BACK TO OPENAI, THEY ARE RUMORED TO BE GENERATING A BILLION DOLLARS IN REVENUE ANNUALLY ALREADY BUT ONLY IN MARKET FOR A YEAR. CAROLINE:
ENTERPRISE IS SOME POINT FOR THEM. MICHAEL: IT IS DUE TO CHAT GDP. SO MANY OF US ARE USING AND PAYING FOR THE PREMIUM FEATURES. THAT IS THE SAME WITH MY JOURNEY. THERE IS A MODEL THAT IS A NEW TYPE OF BUSINESS MODEL UNIQUE TO AI PRODUCTS. ED:
WE WERE JUST SHOWING VIDEO OF PIKA. WHAT IS INTERESTING ABOUT THE VIDEO IS THAT EVERYTHING THAT WE'RE CURRENTLY SHOWING ON THE SCREEN IS AI GENERATED, RIGHT? HOW HAS THIS COMPANY SCALED? IF ALL OF OUR AUDIENCE ON BLOOMBERG TECHNOLOGY IS WATCHING AND SAYS, I HAVE TO BE USING PIKA, WILL PIKA BE ABLE TO SUSTAIN AND BE ABLE TO HANDLE THIS BIG JUMP IN VOLUME THAT OUR SHOW MIGHT CREATE FOR THEM? MICHAEL: PIKA LABS HAS BEEN FOUNDED BY TWO INCREDIBLE CHINESE-AMERICAN WOMEN, TWO OF THE MOST ACADEMICALLY DECORATED IN ALL OF AI, AND I HAVE FULL CONFIDENCE IN NAME -- IN THEM AND THE TEAM TO BUILD A PRODUCT THAT'S NOT ONLY AMAZING FOR CREATING VIDEO BUT ABSOLUTELY STABLE AND ROBUST FROM AN INFRASTRUCTURE STANDPOINT. TONS OF CONFIDENCE IN THE TEAM. ED: WHAT CAN YOU TELL US ABOUT THE INFRASTRUCTURE? WHAT OTHER SILICON ARE THEY USING? WHAT IS THEIR CLOUD PARTNER? MICHAEL: NOT SOMETHING THAT I WANT TO REVEAL, THAT IS FOR THE FOUNDERS TO REVEAL, BUT I CAN ASSURE YOU THAT PIKA IS DEVELOPING WITH THE LATEST AND GREATEST THEIR OWN STATE-OF-THE-ART MODEL AND IT'S READY FOR PRIME TIME. CAROLINE: MORE BROADLY, IS THIS THE AREA THAT YOU ARE CONTINUING TO GRAVITATE TOWARDS? THE DEMOCRATIZATION OF AI IN THE CONSUMER BASE? MICHAEL: AS I TALKED ABOUT LAST TIME, I BELIEVE THAT THE HISTORY OF THE INTERNET HAS PROVEN THAT MASSIVE AMOUNTS OF VALUE BECOME UNLOCKED WHEN COMPANIES DEMOCRATIZE CREATIVITY. THEY ENABLE ANYONE AND EVERYONE
TO CREATE THINGS THAT WERE PREVIOUSLY VERY HARD TO MAKE YOUR IT SIMULTANEOUSLY, THEY UNLOCK NEW FORMATS THAT CREATE TREMENDOUS AMOUNTS OF VALUE. WE HAVE SEEN THIS THROUGH PLATFORMS LIKE INSTAGRAM, YOUTUBE, AND TIKTOK. I THINK THE AI WILL USHER IN AN NEW ERA OF COMPANIES LIKE THIS THROUGH PIKA AND THE COMPANY THAT I MENTIONED LAST TIME, TONE. CAROLINE: WHEN IT COMES TO THE AMOUNT OF CONTENT WE HAVE ON PODCASTS, WE HAVE YOU TO BLAME FOR THAT. THANK YOU. AMERICA'S FRONTIER FUND HAS MADE ITS FIRST INVESTMENTS THREE NEW VC FIRM CALLED ROADRUNNER VENTURE STUDIOS.
IT IS BACKED BY PETER THIEL AND IS A NONPROFIT INVESTMENT PLATFORM THAT'S FOCUSED ON TECH BREAKTHROUGHS THAT IT DEEMS TO BE IN THE NATIONAL INTEREST. THE FIRST THREE INVESTMENTS THROUGH THE ROADRUNNER FIRM IS A CLEANTECH STARTUP FOCUSED ON HYDRO-PRODUCTION. WE HAVE A BIOTECH COMPANY AND A COMPANY FOR MANUFACTURING. THIS IS THE NONPROFIT SIDE OF THE BUSINESS. ED: THAT IS THE NEWS. COMING UP THE STATE OF AI. META AND IBM TEAM UP FOR AN
INDUSTRY ALLIANCE. NEXT, HIS OUTLOOK AS THE AI STARTUP UNVEILS ITS OWN CAP PRODUCT. LET'S GO BACK TO CHARTER, IT HAD DROPPED AS MUCH AS 10%. IT SEEMS TO BASED ON COMMENTS THAT JESSICA FISHER IS MAKING AT THE CONFERENCE, SHORT-TERM CHALLENGES IN BROADBAND SUBSCRIBERS.
THEY GIVE A MORE BULLISH LONG-TERM OUTLOOK. IN NOVEMBER ACCORDING TO CFO JESSICA FISHER HAS BEEN SIMILARLY SOFT WHEN IT COMES TO BROADBAND SUBSCRIBERS. A BIG DROP IN THAT STOCK IN REAL-TIME BASED ON THOSE COMMENTS. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: META AND IBM ARE JOINING ORGANIZATIONS TO CREATE AN INTERESTING GROUP DEDICATED TO OPEN SOURCE ARTIFICIAL INTELLIGENCE WORK. THE FOCUS OF THE AI ALLIANCE IS RESPONSIBLE DEVELOPMENT OF AI TECHNOLOGY INCLUDING SAFETY AND SECURITY TALKS. WE WANT TO TALK ABOUT HOW YOU ARE INTERACTING FROM A CORPORATE LEVEL WITH AI. AN INNOVATOR IN AI DEPLOYMENT SOLUTIONS UNVEILED ARTHUR CHAT. JOINING US TO TALK US THROUGH
HOW THEIR OFFERING CHAT IS THE ARTHUR CEO. YOU ARE OFFERING COME TO A COMPANY AND WE WILL HELP YOU DECIDE WHAT THE RIGHT LLM IS FOR YOU. WE ARE AGNOSTIC. WE WILL HELP YOU BUILD FIT FOR PURPOSE CHATBOTS. WHAT DOES THAT TAKE AT THE MOMENT AND WHAT IS THE DEGREE THAT CORPORATE'S WANT A DIVERSITY OF CHOICE GIVEN WHAT IS HAPPENED AT OPENAI? >> RATE QUESTIONS. THE SITUATION AT OPENAI, OBVIOUSLY CRUSHING IT, BUT IT HIGHLIGHTED THE RISK JUST LIKE ANY OTHER TECHNOLOGY. WE GET TOO LOCKED INTO A SINGLE VENDOR AND YOU EXPOSE YOURSELF. TWO ABLE TO CHOOSE THE RIGHT
TOOL FOR THE JOB AND HAVE A DIVERSE APPROACH TO THE AI STRATEGY IS CRITICAL. WE AREN'T TRYING TO TRAIN OUR OWN LLM FOUNDATION MODEL. WE THINK THERE'S A GOOD ECOSYSTEM OF THOSE OUT THERE USING SOMETHING COMMERCIALLY BACKED, OPEN-SOURCE, OR TRAINING YOUR OWN. IT DOESN'T MATTER TO US. WHAT HAPPENS OVER AND OVER IS THAT PEOPLE WILL DEVELOP THESE DEMOS WHERE THEY CAN GET RIGHT OUT OF THE GATE IN A FEW HOURS SOMETHING THAT GIVES THEM COMPELLING ANSWERS AND PEOPLE GET EXCITED. WHEN YOU GO FROM THE REALLY COOL DEMO TO A SYSTEM THAT IS ACTUALLY READY FOR PRIME TIME, IS IT MAKING STUFF UP 10% OF THE TIME? IS IT GIVING TOXIC ANSWERS IN SOME SITUATIONS? THAT TAKES MORE WORK AND WE ARE TRYING TO MAKE THAT EASY FOR PEOPLE SO THAT THEY CAN GET THEIR VALUE OUT OF GENERATIVE AI MORE QUICKLY. CAROLINE: WE HAD THE NEWS AROUND
OPEN-SOURCE AI ALLIANCES. HOW MUCH IS THAT CONVERSATION SOMETHING YOU'RE HAVING WITH CLIENTS? ADAM: BIG. MOST CLIENTS ARE EXPERIMENTING WITH OPEN-SOURCE MODELS. I THINK THERE'S A REAL APPETITE WHEN PEOPLE START TO FINE-TUNE THEM. YOU CAN USE SMALLER MODELS.
ONE BIG PROBLEM IS THEY CAN BE SLOW TO RUN. OPEN-SOURCE GIVES PEOPLE A GREAT FOUNDATION TO BUILD OFF OF WHERE THEY CAN CREATE VERY EFFECTIVE SOLUTIONS THAT ARE FASTER AND POTENTIALLY CHEAPER TO RUN. THEY ARE NOT -- IT REMOVES SOME OF THE RISK OF BEING DEPENDENT ON A THIRD PARTY. WE ARE SEEING A TON OF INTEREST. ED: THERE IS A VOCAL GROUP OF
PEOPLE WHO THINK THAT IT IS IMPORTANT TO HAVE CHOICE FOR THE FOUNDATION MODEL LLM AND IMPORTANT TO HAVE CHOICE FOR GENERATIVE AI TOOLS. THAT SAID, ARE THERE NOT TOO MANY CHATBOTS? ADAM: THERE ARE A LOT, YOU ARE RIGHT. IT IS A BIG MARKET. PRETTY MUCH EVERY MAJOR ENTERPRISE HAS MANY PROJECTS GOING ON IN THE GENERATIVE AI REALM. I THINK THAT THERE'S A LOT OF NEAT OUT THERE. OVER TIME I THINK THAT THERE
WILL BE SOME CLEAR WINNERS EMERGING, BUT THERE IS SO MUCH NEED RIGHT NOW IN THE MARKETPLACE FOR GOOD TOOLS TO HELP PEOPLE ACCELERATE THEIR AMBITIONS. ED: ONE EXAMPLE, A CASE STUDY FOR ARTHUR CHAT IS THE RETAIL SPACE. IF YOU WORK IN A RETAIL SETTING YOU CAN ASK FOR THE LATEST LINE OF CLOTHING. IT RAISES THE ISSUE OF TRAINING. THE RESPONSE IS ONLY AS GOOD AS THE PROMPT THAT GOES IN.
WHAT ARE YOU DOING AROUND THE TRAINING SIDE OF THE HUMAN, NOT THE MODEL? ADAM: A LOT OF WHAT WE DO IS EVALUATE TO MAKE SURE THAT AS PEOPLE ARE GOING IN, PROBLEM THING -- GOING IN, PROMPTING COMMIT SOMEONE IN THE RETAIL FASHION INDUSTRY OR DOING FINANCIAL RESEARCH, WE LOOK AT THE EXACT KINDS OF PROMPTS THAT THEY'RE DOING WE HAVE ROUTINES THAT WILL VALIDATE AND MAKE SURE THAT YOU ARE GETTING THE BEST ANSWERS TO THE EXACT QUESTIONS THAT YOU'RE ANSWERING. IN TERMS OF TRAINING, BEING ABLE TO IN REAL TIME GIVE PEOPLE FEEDBACK ON HOW WELL SUPPORTED IS THIS ANSWER BY THE DATA, IS THIS SOMETHING THAT THE MODEL MADE UP OR IS IT REAL, THAT GOES ALONG WAY TO ROLLING IT OUT TO A BROADER POPULATION OF USERS WHO DON'T HAVE TO BE EXPERTS AT VENTING THE OUTPUT OF GENERATIVE AI THAT ARE JUST NORMAL USERS TRYING TO DO THEIR JOB AND LOOKING TO GET FREED UP FROM SOME OF THE MORE TEDIOUS PARTS AND ACCELERATE WHAT THEY ARE TRYING TO ACCOMPLISH. CAROLINE: IT'S GREAT TO HAVE YOU IN THE STUDIO. THANK YOU FOR JOINING US. TALKING US THROUGH HOW WE ARE SEEING ADOPTION GOING OF THESE AI TOOLS. WHAT A WIDE-RANGING CONVERSATION AS ALWAYS. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: IF THE AUDIENCE FEELS LIKE THERE ARE TOO MANY CHECKPOINTS, LINKEDIN OR X OR WHATEVER, I'M INTERESTED IN YOUR OPINION.
FIND US ON PODCASTS WHEREVER YOU FIND YOURS. WE ARE STILL POSTING THE PODCASTS TO ONE OF THE BLOOMBERG PLATFORMS. THANK YOU TO EVERYONE WHO LISTENS ON THEIR WAY TO WORK, THE SUBWAY, WHATEVER IT MAY BE.
FROM SAN FRANCISCO AND NEW YORK CITY, THIS IS BLOOMBERG TECHNOLOGY. ♪
2023-12-07 23:37
