Nvidia's Earnings and Apple's DOJ Case | Bloomberg Technology
>> FROM THE HEART OF HER INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE IN BLOOMBERG HEADQUARTERS IN NEW YORK. ED: THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: FULL COVERAGE ON NVIDIA. PUSHING AHEAD TO THAT ALL-IMPORTANT EARNINGS AFTER THE CLOSING BELL. >> APPLE LOOKS TO GET ITS DOJ ANTITRUST CASE TOSSED OUT.
WE WILL BRING YOU THE DETAILS. >> SCALE AI SKEWS AS ITS VALUATION NEARLY DOUBLES TO A MOST 14 BILLION. THE CEO JOINING US LATER IN THE HOUR. THERE IS A MACRO BIT OF DATA WE ARE WAITING FOR THE FED MINUTES COMING LATER IN THE AFTERNOON AND WE ARE BASICALLY FLAT AHEAD OF THAT. WE ARE STILL DIGESTING SOME STRONG EARNINGS FROM THE TECH ECOSYSTEM WE ARE UP JUST FIVE POINTS ON THE NASDAQ. RECORD HIGHS LOOKING AT 20 YEAR YIELD JUST FLAT AHEAD OF THE AUCTION WE HAVE SEEN BOND SELLING OFTEN YIELDS RISING. WE GO BACK INTO THE GREEN JUST
A MOMENT. INFLATION IS COOLING BUT IT'S NOT COOLING AS MUCH, OF POUND IS HIGHER AND THE U.S. DOLLAR AS WE SEE THE BANK OF ENGLAND NOT BEING ABLE TO CUT AT THE ANTICIPATED RATE THAT THE MARKET HAD WANTED TO SEE. LET'S SEE WHAT'S HAPPENING IN THE WORLD CRYPTO BECAUSE SUDDENLY WE RE-GALVANIZE OURSELVES WITH THE LATEST SPOT ETF THIS ONE BEING AN IN HIM RELATED ONE. FOR THE COMPLIANCE FOLKS HAVING TO GET THE DATA AND DOCUMENTS READY. WE ARE CURRENTLY DOWN AS WE SPEAK. ED:
IT HAS BEEN CALLED THE MOTHER OF ALL EARNINGS. IT'S BEEN LABELED AS THE SINGLE MOST IMPORTANT STOCK ON THE PLANET AND THAT WHEN YOU SAY AI INDUSTRY YOU ARE TALKING ABOUT NVIDIA. EARNINGS AFTER THE BELL, THE STAKES ARE INCREDIBLY HIGH. WE WANT TO CONTINUE TO SEE YEAR
ON YEAR TOPLINE GROWTH IN EXCESS OF 200%. ALSO LOOKING AT THE MARKET CAPITALIZATION WITH THIS COMPANY WHEN YOU THINK ABOUT HOW HIGH THE STAKES ARE. IT'S A LOT AND SO WHAT IS GOOD TO HAPPEN? A LOT OF YOU IN OUR BLOOMBERG TECHNOLOGY AUDIENCE LOOK AT DEMAND SIGNALS AND THE COMMENTARY FROM THE HYPER SCALARS. YOU LOOK AT THE NEWS AI STARTUPS TRADING MODELS WHETHER OR NOT THEY SECURED EIGHT 100 CLUSTERS YOU LOOK AT THE AI DISCUSSIONS HAPPENING. THERE'S A LOT AT STAKE. WE ARE EXCITED ABOUT IT. THE EXPECTATION IS PROBABLY
THAT NVIDIA KNOCK IT OUT OF THE PARK. >> HOW OFTEN DO YOU GET TO SEE 200% INCREASES IN A QUARTERLY REVENUE. LET'S TALK ABOUT NVIDIA NOW REPORTING EARNINGS AFTER THAT BELL. HERE IS WHAT THE NVIDIA CEO HAD TO SAY ABOUT HIS OUTLOOK FOR AI. >> WE REENGINEERED AND REINVENTED EVERY PLAY OR OF COMPUTING FROM THE CHIP TO THE OPERATING SYSTEM TO THE SYSTEM SERVERS TO THE WAY THESE DATA CENTERS ARE PUT TOGETHER.
WE WANT TO BRING THIS CAPABILITY TO EVERY COMPANY IN THE WORLD. CAROLINE: TO THE OTHER KEY VOICE WHO WANT TO BRING ON, MENDEEP SINGH. THERE'S A LOT OF HOPE ON THESE NUMBERS. >> THEY WILL PROBABLY GUIDE TO 25 BILLION IN DATA CENTER REVENUE BECAUSE THAT'S WHAT EVERYONE CARES ABOUT RIGHT NOW AND IT'S HIGHER THAN CONSENSUS SO YOU KNOW THE BUY SIDE BOGEY HERE IS HIGHER THAN CONSENSUS. ANYTHING WOULD HAVE A NEGATIVE KNEE-JERK REACTION. AND THEY WILL DO IT. THE QUESTION TO ME IS HOW MUCH OF THEIR NEW BLACK ROCK CHIP IS USED FOR TRAINING AND WHAT ARE THE EXISTING CHIPS IN TERMS OF THE INTRINSIC SIDE OF THE EQUATION BECAUSE ONCE YOU PARSE THROUGH THAT LENS YOU WILL GET A SENSE IS THIS SUSTAINABLE IN TERMS OF TRIPLE DIGIT GROWTH, THAT'S NOT GOOD HAPPEN GIVEN THEY GET TOUGHER AND THE SECOND HALF BUT IN TERMS OF SUSTAINING HIGH DOUBLE-DIGIT GROWTH IT COMES DOWN TO WHETHER NVIDIA WILL BE A BIG PLAYER AND JENSEN SAID THEY HAVE A 40% SHARE.
EVERYONE QUESTIONS THAT SO WE WILL BE LOOKING FOR UPDATES BECAUSE MICROSOFT ANNOUNCED A NEW PC QUALCOMM CHIPS. INTEL IS PROBABLY DOING SOMETHING AROUND THEIR OWN CHIP. APPLE WILL ANNOUNCE SOMETHING AROUND GENAI. NVIDIA HAVING THE SHARE COMES DOWN TO DO THEY HAVE A PLAY WITH THE SCALE CLOUD RENDERS, AMAZON, MICROSOFT AND GOOGLE USING NVIDIA FOR INFERENCING. THEY WILL PROBABLY END UP USING THEIR OWN CHIPS FOR INTRINSIC.
WHY WOULD THEY USE IT GIVEN THE NVIDIA COMMAND RIGHT NOW. ED: I APPRECIATE THAT ANSWER SO MUCH. I'VE BEEN THINKING ABOUT GENERATIONS OF TECHNOLOGY. ALL OF THIS IS BUILT ON AGE 100. A LOT OF PEOPLE WORRY THERE IS THIS AIR POCKET WHERE THE NEXT GENERATION WITH HIGH MEMORY IS RAMPING UP AND YOU HAVE BLACKWELL LATER IN THE YEAR. YOU ARE AN ANALYST THAT LOOKS AT THIS COMPANY. ARE YOU CONCERNED THAT THE END MARKET SAY WHY WOULD I BUY H 100.
THE NEXT BEST THING IS COMING I WILL JUST WAIT. >> THERE WERE RUMORS AROUND THAT WITH AMAZON YESTERDAY BUT THE MARKET RIGHT NOW IS UNDERSUPPLIED AND EVERYONE WANTS TO GET A HOLD OF WHATEVER THEY CAN FOR TRAINING THEIR LLM'S. IT COMES DOWN TO WHO ARE THE BIG PLAYERS AND WE KNOW THAT FIELD IS CONSOLIDATING. THE NUMBER OF THEM HAVE THROWN IN THE TOWEL. THEY ARE GETTING ACQUIRED BY LARGER HYPER SCALARS SO THAT FIELD IS NARROWING. THE SECOND VECTOR THE DRIVES THAT IS THE SIZE OF THE MODEL. IF THE SIZE IS GROWING THEN YOU
NEED A BIGGER CLUSTER AND PROBABLY A BLACKWELL SERIES WILL HAVE POOR PERFORMANCE. GOOGLE SAID THEIR DPU SIX IS FIVE TIMES FASTER THAN THEIR DPU FIVE. WHAT IS IT TELL YOU YOU KNOW THE PERFORMANCE INCREASES ARE THERE AND IF YOU'RE A HYPER SCALARS THAT'S BUYING $10 MILLION OF NVIDIA CHIPS YOU WOULDN'T WANT TO SEE THAT HIGHER PERFORMANCE -- YOU WOULD WANT TO SEE THAT HIGH-PERFORMANCE CHIP. ALL OF THAT IS A RISK. IN THE END NVIDIA HAS A 50% EXPOSURE TO HYPER SCALARS AND THESE ARE VERY CONCENTRATED CUSTOMERS. FIVE TO SIX CUSTOMERS ON THEIR
DATA CENTER REVENUE. >> THEY STILL HAVE SOME DEPENDENCY ON CHINA. CHINA CANNOT HAVE THE MOST SOPHISTICATED CHIPS. WE HEAR ANYTHING ABOUT EXPOSURE THERE? >> WE KNOW THAT'S GOING DOWN ITS MOST MID-SINGLE DIGIT BUT THAT IS A MARKET WHERE THEY COULD SEEN UPSIDE SURPRISES.
EVERY COMPANY IS STRAINING THEIR OWN LLM'S. IT COMES DOWN TO TRAINING MARKET. HOW BIG IS THE TRAINING MARKET AND HOW CLEAR IS IT THERE.
I WOULD SAY THE TOP SIX ARE BASED OUT OF THE UNITED STATES AND THE NEXT FIVE ARE IN CHINA. BUT IF NVIDIA CANNOT SELL THEIR LATEST CHIPS TO THE CHINA MARKET , THAT KIND OF TAKE SOME OF THE UPSIDE OUT IN THE NEAR TERM AND WE DON'T KNOW HOW THIS GEOPOLITICAL SITUATION WILL PAN OUT. >> THIS IS A REALLY BIG FINALE TO WHAT HAS BEEN AN INCREDIBLE EARNINGS SEASON. BLOOMBERG INTELLIGENCE SENIOR ANALYST MANDEEP SINGH GREAT SET UP FOR US.
COMING UP ON THE PROGRAM WE WILL TALK ABOUT OPTIMISM AMID SIGNS OF THE ETF APPROVAL WE'VE GOT JACK ON SET. WHAT ARE YOU LOOKING AT? >> 18 I ON WHAT ELSE IS REPORTING UNDER THE BELL. SHARES ACTUALLY UP BUT THERE HAS BEEN ANXIETY, THE REVENUE GROWTH FOR THIS IS EXPECTED TO SLOW TO 26% LAST YEAR. THIS COMPANY PRIORITIZE GENERATIVE AI OVER TRADITIONAL DATA WAREHOUSING. WHERE DOES THAT COMPETITIVE LANDSCAPE EVOLVE FOR THEM? WE WAIT TO SEE IF THEY CAN HIT THE 86 MILLION DOLLARS ANTICIPATED. THIS IS BLOOMBERG TECHNOLOGY.
>> I AM LOOKING AT ETHER AND THERE'S BEEN A LOT OF ENERGY OVER THE LAST FIVE DECADES -- FIVE DAYS. BLOOMBERG REPORTED CITING SOURCES THAT THE SEC INSTRUCTED THE NEW YORK STOCK EXCHANGE AND THE CBOE TO UPDATE REGULATORY FINDINGS THAT RELATE TO CHANGING RULES THAT WOULD MAKE THE APPROVAL OF A SPOT ETHER ETF MORE LIKELY AND THE MARKET GOT CAUGHT BY SURPRISE AS IF IT WASN'T PRICED IN. HOW YOU GOT COMPLIANCE OFFICERS EVERYWHERE GOING THIS ISN'T SUPPOSED TO HAPPEN AS QUICKLY. WE LEARN FROM A BITCOIN EXPERIENCE IT ISN'T LINEAR. IT DOESN'T GO IN A STRAIGHT LINE. PEOPLE ARE EXCITED ABOUT IT AND
YOU LOOK AT THE PERFORMANCE OF THE TWO. ETHER, THE TOKENIZED VERSION OF THE BLOCKCHAIN. THE GAPS CLOSING WITH BITCOIN A LITTLE BIT. THE POINT I'M MAKING IS THE MARKETS, YOU AND I MIGHT BE A BIT SURPRISED WE ARE TALKING ABOUT THIS IN THIS CONTEXT AND LOOKING BEHIND. >> WHAT MANY PEOPLE FEEL MOVE THE MARKET WAS BLOOMBERG INTELLIGENCE RAISING HIS PROBABILITY THAT THE ETF WAS GOOD AT, AND THE MARKET MOVED ON THAT.
WE WILL TALK ABOUT SOMEONE WHO IS INTO THE BITCOIN SCENE AND WHAT HE THINK ABOUT THE THEORY AND ETF AS WELL. ALWAYS GREAT TO HAVE YOU ON THE SHOW. YOU OF COURSE VERY MUCH FOCUSED ON FUNCTIONALITY AND BUILDING UPON BITCOIN. WHAT DO YOU THINK OF AND ETF WITH MORE INSTITUTIONAL MONEY COMING INTO THE SMART CONTRACT SIDE OF THE EQUATION. JACK: I AM NOT A FAN OF ANY OF THE CRYPTOCURRENCY OUTSIDE OF BITCOIN BUT I THINK THERE IS A HILARIOUS STORY AS TO WHY THIS IS HAPPENING. I WAS LAUGHING OUT LOUD IT LOOKS LIKE SOMEONE WENT TO GARY GENSLER. AND YOU HAVE TO THINK WHY THAT
WAS. IT'S BECAUSE BANKS IN WALL STREET ARE MAKING MONEY. BANKS GET A REALLY BAD DEAL IN TODAY'S MARKET BECAUSE THEY HAVE THE BOND -- BY BONDS ARE PERFORMING AWFULLY. THEY GET A FREE MARKET IN THIS INDEPENDENT CRYPTO THING AND THEY ARE MAKING MONEY. THESE MARKETS GO UP WHEN GOVERNMENTS TO BASE THEIR CURRENCY THESE THINGS PERFORM WELL. AND THEY GOT A TASTE OF BITCOIN IT WAS THE BEST PERFORMING PRODUCT THEY HAD EVER HAD AND THEY ARE LIKE HOW MANY OTHER PIECES ARE OUT THERE THAT WE CAN ENLIST AS ETF'S AND I THINK THAT'S WHAT'S HAPPENING.
IT'S A BETTER BUSINESS TO LAUNCH CRYPTO ETF SENATE IS TO BUY BONDS RIGHT NOW. BASED ON THE MACRO ENVIRONMENT. I THINK SOMEONE SAID SORRY DESPITE YOU THINKING THESE THINGS ARE SECURITIES NEED TO MAKE MONEY AND THAT'S WHAT HAPPENED. >> DOW'S OF REPRESENTATIVE'S CURRENTLY TAKING ON A BILL AT THE MOMENT AS TO WHETHER IT SHOULD BE THE SEC AT ALL OR WHETHER IT SHOULD BE SHIFTED, BUT TO YOUR POINT WHETHER YOU IN THEORY HIM DOES INDEED MANAGE TO BECOME SPOT TREATED WITH AN ETF AND MONEY COMING IN THERE IS A REAL ORGANIZATION OF DOCUMENTS BECAUSE THEY DON'T WANT TO SEE STAKING INVOLVED IN ANY WAY. HOW DO YOU THINK ABOUT WHAT
THAT MEANS FOR AN INVESTMENT OPPORTUNITY? JACK: I AM A BITCOIN GUY. I THINK ALL OF IT IS A DISTRACTION AND A LOAD OF NONSENSE. WHAT THEY ARE TRYING TO DO IS WALK THE LINE OF HOW DO YOU JUSTIFY BANKS AND WALL STREET'S ACHING REVENUE ON THIS INDUSTRY BECAUSE WITH ALL PASSIVE INVESTING AND CENTRAL BANKS TRYING TO PRICE CONTROL EVERYTHING THIS MARKET HAS LIFE AND IF IT HAS LIFE THERE IS AN OPPORTUNITY TO MAKE MONEY. PEOPLE ON WALL STREET LIKE VOLATILITY SO THE TRYING TO FIND A WAY TO JUSTIFY AND MAKE PEACE WITH EXISTING SECURITIES LAWS WELL GIVING THESE WALL STREET'S AND BIG BANKS LIKE J.P.
MORGAN AND ABILITY TO MONETIZE THIS SPACE AND ACTUALLY MAKE MONEY BECAUSE THE BUSINESS THEY ARE IN RIGHT NOW YOU ARE NEEDING TO BUY BONDS AND LEND MONEY TO THE GOVERNMENT AND NOT GET PAID THE GROWTH. >> THERE ARE CERTAIN PARTS OF IT I GET YOUR POINT FINANCIAL INSTITUTIONS ARE STILL DOING QUITE WELL. BUT THERE'S POTENTIALLY A ROLE FOR BANKS TO PLAY WHICH COULD ALSO BE GOING THROUGH. >> THE S&P 500 IS DOMINATED BY THE TOP SEVEN COMPANIES AND THEY ARE ALL TECH COMPANIES. THEY DON'T CARE ABOUT THE COST OF CAPITAL. FACEBOOK AND APPLE, THESE CAN
FINANCE THEIR BUSINESS WITH EXISTING CASH FLOWS. THE REST OF THE WORLD IS IN HURT. AND THE WHOLE JOB IS TO TAKE OUR DEPOSITS AND THESE BONDS ARE GETTING SLAUGHTERED AND ALL OF A SUDDEN THEY ARE LIKE WOW HERE IS A MARKET WITH LIFE AND RETAIL FLOWS.
A MARKET THAT HAS BALA TO LIDDY THIS REACTED TO THE OUTSIDE WORLD. HOW MANY OF THESE CRYPTO THINGS EXIST. I WOULDN'T BE SURPRISED IF WE GOT A COIN ON HERE. WE SHOULD GET THAT ETF SOON. ED: JACK, LET'S GO BACK TO BASICS
HERE. THERE'LL BE MEMBERS OF THE TECHNOLOGY AUDIENCE THE PUSHBACK ON A SPOT ETF BEING THE NEXT LISTING OF A PIECE AS THE STANDARD TAGLINE ARE BLOOMBERG COVERAGE. WHICH IS THAT ETHER IS A NATIVE TOKEN OF A THEORY HIM AND A THEORY HIM IS THE MOST WIDELY COMMERCIALLY USED BLOCKCHAIN. WHAT WOULD BE A RESPONSE TO THAT STANDARD LINE? >> I APOLOGIZE TO THOSE I OFFENDED. HERE IS MY POINT. BITCOIN IS THE ONLY MONEY IN THE CRYPTOCURRENCY SPACE. IT'S DESIGNED AND TREATED AS A MONETARY ASSET SO WHAT DO I THINK A THEORY HIM IS? I THINK IT IS A TECHNOLOGY WHICH YOU DISPLAYED IN YOUR DEFINITION OF IT.
IT APPEALS TO DEVELOPERS, THEY CHANGE THE RULES ALL THE TIME. THE MARKET OFTEN CONFLATES IT AS A MONEY AND A COMMODITY. NVIDIA IS A TECHNOLOGY. THESE HAVE CASH FLOWS, THEY FOUNDERS, DIRECTORS. PEOPLE WHO SET THE ROADMAP. MAYBE I'M BEING A BIT AGGRESSIVE BUT I THINK IT IS DIFFERENT FROM BITCOIN. I THINK BITCOIN CAN BE THE
WORLD RESERVE ASSET, THE ONE WE USED TO STORE OUR TIME AND ENERGY. AND A THEORY AND CAN BE A TECHNOLOGY. WHAT IS THEIR CASH FLOW. WHO FOUNDED IT. WHO SETS THE DIRECTION AND WHY DOES IT CHANGE SO MUCH AND WHEN IT DOES, WHY DOES IT CHANGE? THERE'S A LOT OF INTENTIONAL CONFUSION IN THE STORY. AND IT FRUSTRATES ME BECAUSE I'M TRYING TO FIX THE MONEY IN THE WORLD. I THINK THERE'S A LOT THE
MARKET HAS TO SORT OUT AS TO WHAT IT ACTUALLY IS AND HOW TO VALUE IT. >> COME BACK WITH YOUR MESSAGING AND, ON THE SHOW FROM SAN FRANCISCO AS WELL. ALL THINGS CRYPTO. WE HAVE SOME BREAKING NEWS FROM THE U.K.. THERE'S BEEN A LOT OF RUMORS SWIRLING ON WHETHER OR NOT WE WILL SEE A SUMMER ELECTION CALLED BY RISHI SUNAK THE CURRENT PRIME MINISTER. HE WILL CALL THE SUMMER
ELECTION THIS AFTERNOON REPORTED BY THE GUARDIAN. HE'S GOING TO CALL THAT FOR JULY. SO THE GUARDIAN REPORTS. BLOOMBERG HAS BEEN REPORTING THAT THERE HAS BEEN REPEATED AFFIRMATION THERE WILL BE AN ELECTION IN 2024 IN THE SECOND HALF OF THE YEAR. THE NUANCE IS EXACTLY WHEN THAT IS PRAYED WE WILL HAVE MORE ON WHAT'S HAPPENING IN THE U.K. AND THE IMPACT ON U.K. ASSETS FOR NOW, THIS IS
BLOOMBERG TECHNOLOGY. ♪ CAROLINE: POLITICS NEWS OUT OF THE UNITED KINGDOM. RISHI SUNAK LIKELY TO CALL AN ELECTION FOR AS SOON AS JULY AS BEEN REPORTED BY THE GUARDIAN. WE KNOW THIS BEEN PLENTY OF RUMORS ACCENTUATED BY THE INFLATION REPORT THAT CAME OUT OF THE U.K. TODAY WHICH SHOWED EVEN THOUGH IT'S HIGHER THAN THE MARKET ANTICIPATED INFLATION IS SLOWING TO WHERE THE BANK OF ENGLAND'S KEY RATE OF 2% LEVEL TARGET IS. THIS IS NOTABLE BECAUSE THERE'S BEEN MUCH FRUSTRATION IN THE WAY IN WHICH RISHI SUNAK, A PRIME MINISTER THE U.K.
HAS BEEN ABLE TO INJECT OR NOT THE ECONOMIC RECOVERY INTO OVER THE U.K.. THE ALTERNATIVE PARTY IN THE U.K. LEADS BY MANY POINTS IN TERMS OF HOW PERHAPS VOTERS WILL LEAD. I DON'T WANT TO ACCELERATE TO THE POLLS.
>> JULY WOULD BE SOONER THAN THE SORT OF GENERAL WISDOM WHICH IT WAS THE PRIME MINISTER WOULD WAIT UNTIL THE AUTUMN. HIS CONSISTENT LINE HAS BEEN THERE WOULD BE A VOTE IN THE SECOND HALF OF THE YEAR BUT THE RATIONALE THINKING HE WOULD WAIT UNTIL THE AUTUMN IS THERE'S A COST-OF-LIVING CRISIS IN THE UNITED KINGDOM BASICALLY AND STRATEGICALLY KEY IN THE CONSERVATIVE PARTY, THE THINKING WAS WOULD HOLD INTO THE AUTUMN TO LET THAT COST OF LIVING CRISIS EASE OFF. BUT YOUR COMPLETELY RIGHT. THE CONSERVATIVES TRAIL THE OPPOSITION LABOR PARTY. >> COVERING THE POLITICAL STORYTELLING THERE AND AT THE MOMENT IT LOOKS AS THOUGH THE GUARDIAN A MONTH AT LEAST WE COULD SEE A GENERAL ELECTION BEING CITED BY SOME SENIOR THOSE CLOSE TO RISHI SUNAK HIMSELF.
>> AS THEY ALWAYS ARE ON DAYS LIKE THESE. AND RISHI SUNAK -- RISHI SUNAK'S HAD THE OPPORTUNITY TO DENY THE CALL OF DENY ELECTION. IT'S ONGOING IN THE PAST 22 MINUTES. FOR ABOUT TWO HOURS. THE DEFENSE SECRETARY -- THERE BEEN WAITING FOR THE ANNOUNCEMENT. ED: SORRY TO INTERRUPT YOU HERE,
GIVE ME A SECOND HERE. WE'RE GETTING SUMMER HEADLINES IN THE BLOOMBERG TERMINAL. SKY NEWS REPORTING A U.K. GENERAL ELECTION WILL BE ON JULY 4 AND MORE SPECIFIC DATA THAN THE GUARDIAN WAS GIVEN. WE KNOW OF TWO REPORTS FROM TWO DIFFERENT U.K. OUTLETS OR NEWS ORGANIZATIONS THAT THERE WILL BE A GENERAL ELECTION IN JULY. I WANT TO BRING IN VONNIE QUINN AND TALK ABOUT THE U.K.
ECONOMY HERE BECAUSE THIS IS AN ISSUE OF TIMING AND STRATEGY. JULY IS SOONER THAN EXPECTED AND IT SOON EXPECTED BECAUSE RISHI SUNAK FACES A DIFFICULT DOMESTIC ECONOMIC PICTURE THAT WILL INFORM VOTERS MINDS. >> LET'S TALK ABOUT THAT INFLATION DATA BECAME AN EARLIER. WHICH WAS HIGHER THAN MOST ANALYSTS AND ECONOMISTS WERE ANTICIPATING. 2.3 SERVICES INFLATION UP BY .9% WHICH SHOWS INFLATION IS ENTRENCHED. RISHI SUNAK WOULD BE HOPING FOR
THAT TO COME DOWN AND FOR THERE TO BE A FEW MORE MONTHS OF DATA SHOWING BETTER INFLATION FIGURES. HE IS NOT GETTING THAT. THE BANK OF ENGLAND WHICH HAD BEEN EXPECTED TO MAYBE MAKE A CUT IN JUNE. BANKS HAVE BEEN PUSHING THAT ESTIMATE FOR THE FIRST CUT OUT. THE MOST RECENT BANK TO DO THAT, FOR THERE TO BE A SNAP ELECTION THAT MAKES LIFE A LOT EASIER BECAUSE IF THERE WERE TO BE A SNAP ELECTION IN JULY AS SOME OUTLETS ARE REPORTING THAT WOULD MEAN THE JUNE WOULD BE A CONTENTIOUS TIME TO MAKE A RATE CUT. IF THE CUT ISN'T GOING TO
HAPPEN ANYWAY THAT MAKES IT MAY BE EASIER TO GET AN ELECTION OUT OF THE WAY. THE CHANCELLOR HAS A DIFFICULT JOB IN THAT POSITION BECAUSE IF HE IS NOT TO BE THE CHANCELLOR ANYMORE THAN IT FALLS TO POSSIBLY RACHEL REEVES, THAT'S THE PERSON MARKETS ARE ANTICIPATING WOULD ENTER NUMBER 11 IN THE EVENT OF A SNAP ELECTION WITH A BETTER LABOR RESULT. AND THE IMF AS WE KNOW HAS BEEN CALLING FOR RATE CUTS. TRYING TO BRING THAT RATE ALL THE WAY DOWN TO ABOUT 3.5% BY THE END OF 2025 IN ORDER TO
RELIEVE THIS COST-OF-LIVING CRISIS WHICH IS ONGOING THREE YEARS. CAROLINE: LET'S TALK ABOUT RACHEL REEVES WHO IS THE SHADOW CHANCELLOR. MEANING SHE IS IN THE OPPOSITION PARTY OF LABOR. AND THEY HAVE BEEN WELL AHEAD IN TERMS OF THE POLLS THUS FAR. AND THE LABOR LEADER HAS BEEN LAUNCHING HIS SIX PLEDGES, A FIRST STEP TO GUIDING THE U.K.
GOING FORWARD AND IT'S NOT JUST ABOUT THE HERE AND NOW OF INFLATION. IT'S ABOUT HEALTH CARE, ACCESS TO NHS WAITING LISTS AND THAT COMES DOWN TO FUNDING. MORE BROADLY WOULD IT BE THE VIEWPOINT FROM THE ECONOMY HERE THAT LABOR WOULD IN ANY WAY CHANGE THE TRAJECTORY? >> IT IS ONE THING. PROMISES ARE ANOTHER THING. SO FOR SURE RACHEL REEVES HAS CONSTANTLY SAID SHE WOULD INCREASE GOVERNMENT SPENDING IN ORDER TO HELP ALONG THE LINES OF HEALTH CARE AND NATIONAL INSURANCE, PENSIONS IN PARTICULAR WHICH WILL BE A CONTENTIOUS ISSUE FOR THE NEXT CHANCELLOR. THE IMF HAS SAID YOU CAN EITHER DECREASE TAXES NOR INCREASE GOVERNMENT SPENDING. THE ECONOMY WON'T BE ABLE TO TAKE IT. THE U.K. JUST CAME OUT OF RECESSION IN
THE FIRST QUARTER. AND THAT WAS A BIG RELIEF TO THE AUTHORITIES. THAT COULD BE IN JEOPARDY IF THERE WERE MORE SPENDING ACCORDING TO THE IMF. >> JUST TO REMIND YOU REPORTING FROM SKY NEWS THAT THE U.K.
GENERAL ELECTION WILL BE HELD ON JULY 4. ANTICIPATION OF AN ANNOUNCEMENT FROM THE PRIME MINISTER COMING LATER THIS AFTERNOON. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. CAROLINE: LET'S CHECK IN ON THESE MARKETS BECAUSE THERE IS A WAIT AND SEE FEEL TO THE BROADER INDEXES. WE HIT RECORD HIGH AFTER RECORD
HIGH ON THE DOW AND ON THE TRUSTED TECH BENCHMARKS. THE NASDAQ 100 HOLDING ON TO GAINS AS THE SET OF NUMBERS COME OUT AFTER THE BELL. NVIDIA KEY TO MARKET CAPITALIZATION AND THE OPTIMISM AROUND AI FOR THE REST OF THE BENCHMARKS. LOOKING AT THE U.S. 10 YEAR YIELD TRADING FLAT. ALSO FED MINUTES COMING TO PASS THROUGH FOR THE MARKET AT LUNCHTIME ABOUT DUTCH UP ABOUT 1/10 OF 1% AS WE ANTICIPATE ANOTHER SPOT ETF. THIS ONE LINKED TO ETHEREUM. LET'S MOVE ON AND LOOK AT WHAT'S HAPPENING FROM A MACRO PERSPECTIVE ACROSS THE POND. CURRENTLY STILL HOLDING ON TO GAINS WHY WAS IT UP VERSUS THE U.S.
DOLLAR BECAUSE THE CPI PRINT COMING IN ACTUALLY HOTTER THAN ANTICIPATED. IT'S DOWN FROM AN EXCESS OF 3%. THAT WAS MORE THAN THE MARKET WANTED TO SEE. SO THE POUND IS UP ON SOME MACRO DATA BUT THERE'S THE POINTS BEING DRIVEN HOME FROM A POLITICAL PERSPECTIVE THAT WE COULD SEE A GENERAL ELECTION AS HELD AS SOON AS JULY 4. WE WILL HAVE MORE ON THAT IN A MINUTE. WHAT WE GOT ON THE TECH? >> ANOTHER TOP STORY IS APPLE WITH PLANS TO ASK A COURT TO THROW OUT THE DOJ'S CASE AGAINST THE IPHONE MAKER MAKING A LONGSHOT BID TO WARD OFF WHAT PROMISES TO BE A LENGTHY LEGAL BATTLE.
JOINING US, THIS IS A CASE FOLLOWED CLOSELY LARGELY PROCEDURAL UPDATE. APPLE WAS SAYING THIS IS WHAT WE BELIEVE, HELP US OUT. HOW DO YOU PRICE THAT? >> THIS IS ONE OF THE MORE IMPORTANT THINGS PEOPLE DON'T TALK ABOUT BECAUSE FRANKLY SPEAKING SERVICES REVENUE IS THE ONE DRIVING APPLE'S GROWTH RIGHT NOW AT A LARGE PORTION OF THAT IS THE OBSTACLE REVENUE AND IF THERE ARE THINGS THAT WILL BE DONE TO DAMAGE THAT, IT WILL HAVE AN IMPACT ON APPLE.
SO FAR WE HAVE NOT SEEN IT BECAUSE IT'S ONLY CHANGES IN THE EU BUT ANY CHANGES IN THE U.S. COULD HAVE A MATERIAL IMPACT ON THAT NUMBER. I THINK APPLE WILL DO WHATEVER IT CAN TO PROTECT ITS ECOSYSTEM. LINDA SUE SAID IT WILL BE A LENGTHY LEGAL BATTLE. >> IT SEEMS AS THOUGH IT IS RARE FOR THE SORT OF THINGS TO BE THROWN OUT AT THE BEHEST OF CERTAIN COMPANIES EVEN THOUGH WE SAW META-MANAGED TO PERSUADE ON THAT FOCUS PREVIOUSLY. MORE BROADLY IS APPLE DOING ENOUGH TO CHANGE THE TUNE WHEN IT COMES TO AI. WE SEE SHARES TO WELL POST
EARNINGS. >> I WOULD GIVE A LITTLE BIT OF THAT CREDIT TO THE GOVERNMENT FOR BREAKING NEWS WITH THEIR PARTNERSHIP ON OPENAI AND THE ONGOING TALKS THAT THEY HAVE AND EVEN GOOGLE. ONE OF THE THINGS MOST PEOPLE WILL AGREE APPLE HAS NOT BEEN ON THE FOREFRONT OF ANY NEW GENAI DEVELOPMENT SO THE QUESTION IS WHAT WILL THEY DO WHEN THEY -- THE JUNE 10 EVENT COMES IN. IF THEY ARE GOING TO ANNOUNCE A PARTNERSHIP WITH OPENAI AND GOOGLE THAT CAN HELP THEM TO CHANGE THEIR SOFTWARE AND MAKE IT BETTER, AND BASED ON THAT WE SEE A REFRESH CYCLE IMPROVE FOR THE IPHONE I THINK THAT WILL BE GOOD FOR APPLE. I THINK IT'S GOING IN THE RIGHT
DIRECTION BUT WE HAVE A LONG WAY TO GO BEFORE WE CAN SAY THEY HAVE A GOOD POSITION IN THE MARKET. >> WE ALWAYS APPRECIATE IT. BLOOMBERG INTELLIGENCE. LET'S FOCUS IN ON WHERE COMPANIES ARE DRIVING FORWARD.
SALESFORCE LAUNCHING EINSTEIN COPILOT FOR MERCHANTS AND MARKETERS TO HELP COMPANIES PERSONALIZE CUSTOMER ENGAGEMENT. LET'S BRING IN SALESFORCE AI CEO. WHO IS TRAVELING AROUND POST THE CONFERENCE IN PARIS AND I'M INTERESTED IN TO WHAT YOU ARE SETTING FORTH HERE. HOW ARE YOU TRYING TO PIT YOURSELF AGAINST THE COMPETITION OF BEING ABLE TO USE THEIR OWN DATA IN A MORE SOPHISTICATED MANNER.
>> THANK YOU FOR HAVING ME. WE ARE THRILLED TO BE HOSTING OUR SALESFORCE CONNECTIONS EVENT IN CHICAGO. FOR COMMERCE MERCHANTS AND MARKETERS.
TO BE ANNOUNCING AMAZING INNOVATION AROUND EINSTEIN COPILOT AS WELL AS EINSTEIN PERSONALIZATION AND NOW DATA CLOUD. FOR THE LAST CUSTOMERS HAVE BEEN BRINGING TRUSTED DATA THEY ARE ALL THE LOGIC IN SALESFORCE AND THEY CAN UNLOCK THAT THROUGH AI. IT'S GOING TO CHATGPT, ANOTHER AI SYSTEM THAT MAY NOT BE SECURE, THAT MAY NOT HAVE THEIR TRUSTED DATA AND GETTING RESULTS THAT MAY NOT MAKE SENSE FOR THEIR BUSINESS VERSUS ONE THAT IS GROUNDED IN THEIR ORGANIZATIONS DATA AND PROCESSES. >> I'M INTERESTED IN THE COPILOT FOR MERCHANTS. WE SEEM TO BE MOVING TOWARDS BASICALLY THE AI AGENT WHERE THE HUMAN BEING OR SEVERAL HUMAN BEINGS INTERACT WITH THIS AGENT IN THE NORMAL COURSE OF THEIR ROLES. HOW QUICKLY DO YOU SEE THE ADOPTION HAPPENING AND WHERE IS IT HAPPENING? >> IT'S AMAZING TO SEE THE RESPONSE SO FAR IN BOTH SALES AND IN CUSTOMER SERVICE. FOR MERCHANTS AND MARKETERS IT
WILL BE EQUALLY POWERFUL. WHAT WE ARE SEEING IS AI IS ABLE TO AUGMENT EMPLOYEES AND THINK ABOUT A COMMERCE MANAGER THAT HAS TO SET UP A DIGITAL STOREFRONT OR WANTS TO LAUNCH A PERSONALIZED COMMERCE CAMPAIGN. NOW THEY CAN DO SO WITH THE HELP OF THIS COPILOT THAT HAS THEIR INVENTORY DATA AND UNDERSTANDS THE BEST PRACTICES AND IS ABLE TO PERSONALIZE TO THAT CUSTOMER THEIR TRANSACTION HISTORY AND PREFERENCES.
>> INTERESTING YOU BROUGHT UP CHATGPT AS A POTENTIAL OF WHAT SOME COULD BE TYING INTO. CORRECT ME IF I'M WRONG IT'S A MIXTURE OF PRIVATE AI MODELS AND YOU HAVE A PARTNERSHIP WITH OPENAI SO TALK TO US ABOUT THE COMPETITIVE OR FRIEND ME SITUATION YOU HAVE WITH MICROSOFT AND OPENAI'S PARTNERSHIP. >> WE BELIEVE IN CUSTOMER CHOICE AND IT'S ALSO VERY EARLY IN THE LARGE LANGUAGE MODEL GAME SO IT'S TOO SOON TO CALL A WINNER AND SO THE WAY THAT WE BUILT OUR EINSTEIN ONE PLATFORM IS IT'S AN OPEN ARCHITECTURE SO CUSTOMERS CAN CHOOSE THEIR FAVORITE WHETHER IT'S SALESFORCE, HOMEGROWN, DOMAIN SPECIFIC LIKE FLO JEN AND CO-JEN OR IT'S FROM ONE OF OUR TRUSTED MODEL PARTNERS INCLUDING GOOGLE AND AMAZON. MICROSOFT OPENAI AND THEN CUSTOMERS CAN ALSO BRING THEIR OWN MODEL. IT'S REALLY ABOUT ADDING VALUE
ON TOP. IT'S OUR EINSTEIN TRUST PLAY ARE PROVIDING DATA SECURITY AND PRIVACY. ZERO RETENTION PROMPTS TO ENSURE BUT NONE OF THE CONTEXT THAT NONE OF THE CONTEXT IT GETS PUT INTO A PROMPT IS EVER STORED OR LEARNED BY A MODEL. IT'S PROVIDING AN AUDIT TRAIL, CITATIONS AND REALLY THAT TRUST THAT CUSTOMERS NEED AS A PRICE OF ADMISSION FOR AI IN THE ENTERPRISE. >> MEDIA REPORTS SUGGEST THAT THE TALKS HAVE BROKEN DOWN WITH SALESFORCE. MAYBE SALESFORCE IS BACK ON THE
HUNT FROM IN, DAY PERSPECTIVE. YOU LEAD THE AI TEAMS AT SALESFORCE. HOW ARE YOU THINKING ABOUT USING ACQUISITIONS TO BUILD OUT YOUR AI OFFERING? >> I'M NOT ABLE TO COMMENT ON THAT BUT WHAT I CAN SAY IS WE ARE SEEING PHENOMENAL EXPLOSIVE GROWTH IN OUR SALESFORCE DATA CLOUD AND IT ALLOWS CUSTOMERS TO BRING TOGETHER ALL OF THEIR TRAPPED SILO DATA FROM ACROSS THE ENTERPRISE. FROM ANY BUSINESS OR SMALL BUSINESS HAS MULTIPLE DIFFERENT SYSTEMS, MULTIPLE DATABASES, WAREHOUSES AND LAKES AND NOW WE CAN CONNECT THAT DATA. IT IS IN A SEAMLESS MANNER.
IF A CUSTOMER IS USING A SNOWFLAKE OR A MICROSOFT FABRIC OR AN AMAZON GOOGLE BIT QUERY THEY ARE ABLE TO BRING THAT DATA AND HARMONIZE IT AND ACTIVATE THAT FOR USE BY ALL OF THEIR SALE SERVICE MARKETING AND MERCHANT TEAMS. >> GREAT TO HAVE YOU BACK ON THE PROGRAM. LET'S GET BACK TO THE BREAKING FROM THE UNITED KINGDOM. THE BBC IS REPORTING PRIME MINISTER RISHI SUNAK IS CURRENTLY INFORMING HIS CABINET OF HIS INTENTION TO HOLD A GENERAL ELECTION ON JULY 4 AND THAT PARLIAMENT WILL BE DISSOLVED NEXT WEEK. WHEN THE PARLIAMENT IS DISSOLVED IT'S THE OFFICIAL TERM WE USE FOR THE END OF A PARLIAMENT AND LEGALLY A GENERAL ELECTION MUST FOLLOW. THE POUND AND THE CURRENCY MARKET IS RELATIVELY STABLE FOLLOWING THESE HEADLINES.
THE EXPECTATION YOU ARE LOOKING AT A LIVE SHOT OF NUMBER 10 DOWNING STREET. MANY MEDIA OUTLETS REPORTING WE WILL GET A STATEMENT FROM THE PRIME MINISTER OF THE CONSERVATIVE PARTY AT SOME POINT TODAY. WE WILL HAVE ALL OF THE LATEST, THIS IS BLOOMBERG TECHNOLOGY.
TERMINAL ONLINE ON APPLE, SPOTIFY AND I HEART. THIS IS BLOOMBERG. >> SCALE AI IS A STARTUP THAT HELPS TOP TECH COMPANIES USE TO AI PRODUCTS IS RAISING $1 BILLION IS ONE OF THE LARGEST FINANCING DEALS OF THE YEAR. THE VALUE NOW AT NEARLY $14 MILLION -- $40 BILLION.
JOINING US IS SCALE POSSIBLE AND CEO. WHEN I LOOK AT THE VENTURE ARMS INTEL, CISCO IS IN THERE. AMAZON, WHAT DOES THAT TELL ME. THAT'S VERY INTERESTING TO SORT OF STRATEGIC BACKING YOU'VE GOT BEYOND JUST THE SIZE AND SCOPE.
>> THANKS FOR HAVING ME. ONE OF THE KEY THINGS OF OUR ROLE IN THE AI INDUSTRY IS WE ARE AN INFRASTRUCTURE. THE THREE PILLARS OF AI ULTIMATELY OUR DATA COMPUTING AND ALGORITHMS. OPENAI CEEO -- SOLVING THE ALGORITHMIC PIECE. AND OUR GOAL AT SCALE IS TO SOLVE THE DATA PILLAR FOR AI. OUR DATA FOUNDRY TODAY POWERS NEARLY EVERY MEETING OR CHANGE MODEL INCLUDING THOSE FOR AI, NVIDIA. SO ULTIMATELY ONE OF OUR GOALS WITH THE FINANCING ROUTE WAS MAKING SURE WE CONTINUE SERVING THE AI ECOSYSTEM SO YOU LOOK AT A LOT OF THE STRATEGIC CORPORATE INVESTORS WE BROUGHT ON BOARD. IT REALLY WAS TO BRING TOGETHER
THE ENTIRE ECOSYSTEM AND MULTIPLE LAYERS IN THE STACK. THIS INCLUDES OTHER FOLKS IN THE INFRASTRUCTURE PLAY ARE. FOLKS LIKE NVIDIA AND INTEL AS WELL AS FOLKS IN THE AREA SUCH AS AMAZON OR META AND LASTLY THE APPLICATION LAYERS SO OUR GOAL ULTIMATELY WAS TO MAKE SURE WE CAN CONTINUE TO SERVE THE ENTIRETY OF THE AI ECOSYSTEM AS AN INFRASTRUCTURE PROVIDER BY BRINGING TOGETHER THAT ENTIRE COHORT. CAROLINE: WHAT ABOUT GOOGLE AND MICROSOFT ARE THEY INTERESTED FOR LATER GATES OR CAN WE ONLY GO WITH A CERTAIN NUMBER OF EACH IN EACH SYSTEM. >> IT IS ALWAYS LIKE HERDING CATS WITH THESE CORPORATIONS. BUT OUR GOAL IS TO CONTINUE SERVING THE ECOSYSTEM.
WE WANT TO ENSURE THAT ARTIFICIAL INTELLIGENCE ON THE WHOLE IS ABLE TO ACCOMPLISH THE INCREDIBLE POTENTIAL READ OUR DATA -- GOAL WITH OUR DATA ENGINE IS TO GENERATE THE FRONTIER DATA NEEDED THAT FUELS TO AGI AND BEYOND. OUR VIEW, ONE OF THE WAYS WE THINK ABOUT IT IS WATER ARE ALL THE PROBLEMS IN DATA FROM GPT FOR TWO GPT 10 AND HOW DO WE HAVE THE MEANS TO PRODUCTION TO DO ALL THAT. >> ABOUT THE ACTION OF LABELING SUCH DATA BECAUSE I KNOW YOU'VE BEEN THINKING A LOT ABOUT AI SAFETY AND THE DEVELOPMENT, OF THE BIASES INSURING THAT'S THOUGHT ABOUT IN YOUR BUSINESS.
BUT THERE WAS A LOT OF CONCERN IN 2023 ABOUT HUGH YOU EMPLOY TO LABEL DATA AND A LOT OF THAT WORK BEING DONE IN THE GLOBAL SOUTH. WHAT RATE YOU ARE PAYING THEM. HOW IS THAT BEING SOLVED LIKE TECHNOLOGY? >> ULTIMATELY WE BELIEVE THE FUTURE OF AI DATA RESTS ON THREE PRINCIPLES. DATA ABUNDANCE, FRONTIER DATA AND THERE WAS ABUNDANCE. ONE OF THE CLEARER AREAS WE NEED TO ENSURE WE ARE ABLE TO BUILD A DATA FOUNDRY THAT USHERS IN AN ERA OF DATA ABUNDANCE. THESE ARE BECOMING INCREASINGLY DATA HUNGRY DUE TO THE SCALING LAWS. EVERY MODEL REQUIRES MORE DATA.
WE NEED TO ENSURE WE ARE ABLE TO BUILD THE SYSTEMS AND THE MEANS OF PRODUCTION THAT ALLOWS US TO NOT RESIGN YOURSELF TO SCARCITY. A LOT OF THE KEY FOR US IS IT THE SECOND BULLET POINT. AS WE DEVELOP PROGRESSIVELY MORE AND MORE POWERFUL AI SYSTEMS WE NEED TO BE BUILDING FROM -- DATA THAT'S PUSHING THE BOUNDARIES OF AI CAPABILITIES TOWARDS MORE ADVANCED AREAS SUCH AS COMPLEX REASONING, MULTIMODALITY AND MORE. THIS PRODUCTION FRONTIER DATA
REQUIRES HUMAN EXPERTS ALL AROUND THE WORLD SO OUR VIEW IS HUMANS AND EXPERTISE ARE CRITICAL COMPONENT OF THIS PROCESS. >> I REMEMBER AUGUST OF 2019, YOU ARE ON A PREVIOUS ITERATION OF THE SHOW, 22 YEARS OLD AND HE WOULD JUST ON $100 MILLION SERIES C. FAST-FORWARD TO TODAY YOU'VE ANNOUNCED A EUROPEAN HQ IN LONDON VALUE TO $14 BILLION.
WHAT'S THAT LIKE? HOW DO YOU FEEL? >> ULTIMATELY THE MOST GRATIFYING PIECE FOR ME AND I THINK FROM THE COMPANY HAS BEEN HOW FAR AI HAS COME IN THAT TIMEFRAME. IN 2019 IT WAS A VERY PRIMORDIAL EARLY DAYS OF ALTERNATIVE AI. EVEN ON THAT PROGRAM WE DID NOT TALK AT ALL ABOUT THE EXCITING THINGS THAT OPENAI YOUR OTHER COMPANIES WERE DOING. YOU FAST-FORWARD TO TODAY WE'VE GONE FROM GPT TO TO GPT FOUR AND BEYOND.
WE HAVE AI SYSTEMS THAT ARE SIGNIFICANTLY MORE CAPABLE AND I THINK WE SEE A PAST AI IMPROVEMENT IN ANYONE'S DESK IN EVERYONE'S LIVE WAS MORE OF A PIPE DREAM 2019 SO I HOPE FIVE YEARS LATER IF I'M BACK ON THE SHOW THAT WE ARE LOOKING BACK ON THE TECHNOLOGY AND SEEING EVEN FURTHER DEVELOPMENT AND ARTIFICIAL INTELLIGENCE. EVEN FURTHER IMPACT FROM ULTIMATELY WHAT WE VIEW AS THE MOST EXCITING TECHNOLOGIES OUR TIME. >> I HOPE IT IS SOONER THAN FIVE YEARS TIME. ALEXANDER WANG, THANK YOU FOR JOINING US ON THE LATEST FUNDING NEWS. MORE FUNDING NEWS ALSO IN THE WORLD OF ARTIFICIAL INTELLIGENCE. DEEP L ANNOUNCING A 3 MILLION-DOLLAR INVESTMENT TODAY.
A 2 BILLION-DOLLAR EVALUATION TO THE COMPANY THAT PROVIDES AI LANGUAGE SOLUTIONS. IT CEO AND FOUNDER JOINS US NOW. TELL US ABOUT WHAT YOU'RE PROVIDING TO YOUR ENTERPRISE CLIENTS BECAUSE THERE'S BEEN A LOT OF EXCITEMENT ABOUT THE TRANSLATION CAPABILITIES OF THE LATEST CHATGPT 4.0. HOW ARE YOU DIFFERENT? >> THANK YOU FOR HAVING ME. I THINK IT'S AMAZING HOW TRANSLATION ACTUALLY IS THE FIRST FRONTIER IN WHICH AI HAS BEEN EXCELLING SINCE QUITE A FEW YEARS AND WAS FOUNDED IN 2017. WE'VE BEEN KIND OF RESEARCHING
ON HOW THIS TRANSLATION TECHNOLOGY CAN BE AS RELIABLE AND ACCURATE AND ON THE POINT ALL THE TIME SO THAT IT SUITS THE NEEDS OF THE ENTERPRISES. IT'S REALLY NOT ABOUT TRANSLATING THIS MENU IN A RESTAURANT WHERE YOU EVER FOREIGN COUNTRY. IT'S REALLY ABOUT ENABLING COMPANIES TO JUST GO AND SEND THE EMAILS TO THE CUSTOMERS AND THEIR RESPECTIVE LANGUAGES OF THOSE ARE SPEAKING AND REALLY GOING GLOBAL AS QUICKLY AS POSSIBLE AS THEY CAN WITH AS MUCH EFFICIENCY AS POSSIBLE. >> YOU HAVE BEEN MANAGING TO SCALE YOUR BUSINESS CLIENTS AND GOVERNMENT CLIENTS WITH THIS OFFERING. I'M INTERESTED WHAT THE NEW ROUND OF MONEY WILL BE DOING.
HOW WILL YOU BE BEEFING UP. IS IT MARKETING AND GETTING OTHERS TO GET YOUR STORY. >> IT'S BASICALLY ALL OF THEM. THE COMPANY IS BEEN INVESTING
ALL OF THOSE FRONTS. WE ARE A COMPANY THAT IS INVESTING VERY HEAVILY ON THE RESEARCH SIDE. WE ARE RUNNING OUR OWN MODELS AND HAVE BEEN DOING SO SINCE THE INCEPTION OF THE COMPANY. BUT AT THE SAME TIME THE
CUSTOMERS WE ARE WORKING WITH, ALL OF THOSE ENTERPRISES THAT ACTUALLY NEED THIS TECHNOLOGY, THEY -- WE NEED TO WORK WITH THEM AND ENABLE THEM TO USE THIS BRAND-NEW AI AND HELP THEM IN DOING SO. THAT'S A VERY LARGE PART OF WHERE OUR INVESTMENTS GO TO? -- OF WHERE OUR VETERANS GO TO. >> YOU ARE KEEN TO UNDERSCORE IT'S NOT JUST SIMPLE TRANSLATION. IT MUST MEAN TRAINING BASED ON MULTIPLE DATA SETS AND CALLING ON MULTIPLE DATA SETS AND THE INFERENCE. JUST EXPLAIN THE CHALLENGE. >> IT IS FIRST AND FOREMOST ABOUT ACCURACY AND QUALITY.
YOU WANT TO BE SURE AND CONFIDENT THAT WHENEVER YOU ARE COMMUNICATING AT THE RIGHT POINT COMES ACROSS AND IT'S REALLY NOT ONLY ABOUT THIS ACCURACY ITSELF IT IS ALSO ABOUT THE FLUENCY OF THE LANGUAGE. YOU WANT TO CONVINCE, TO MAKE SURE THAT YOU ARE BEING UNDERSTOOD AS A PROFESSIONAL. FOR THAT, YOU DO NOT ONLY NEED MODELS THAT ARE GREAT AT GETTING THE FACTS RIGHT BUT YOU HAVE TO GO BEYOND THAT AND HAVE ALL THE LANGUAGE FLUENCY IN THEM. IT MAKES OF THE RESEARCH WORK THAT GOES BOTH ON THE DATA SIDE, THAT GOES INTO THE ALGORITHMS BUT ALSO INTO THE FEEDBACK LOOP AND MAKING SURE THAT OUR TRANSLATORS ARE ASSURING THE QUALITY OF WHATEVER COMES OUT OF THE MODELS. >> YOU'RE JOINING US FROM COLOGNE, GERMANY. WE SHOW THE GRAPHIC WITH ALL THE CUSTOMERS YOU HAVE.
WHERE ARE YOU GROWING FASTEST? ARE YOU MAKING MONEY, WHAT DOES GROWTH LOOK LIKE? >> WE ARE A GLOBAL COMPANY FROM THE VERY BEGINNING AND IT'S PRETTY UNDERSTANDABLE GIVEN THE PRODUCT. IT IS REALLY TRULY ONE OF THE VERY INTERNATIONAL PRODUCTS OUT THERE. IN KEY MARKETS FOR US ARE GERMANY, JAPAN AND THE U.S.
SO IT CAN BE MORE DISTRIBUTED THAN THAT. BUT THE U.S. IS A PRETTY STRONG FOOTHOLD FOR US. RIGHT NOW WE OPENED AN OFFICE A FEW MONTHS AGO IN AUSTIN AND WE WILL BE WORKING MORE AND MORE WITH U.S. COMPANIES THAT WANT TO EXPAND THEIR FOOTPRINT GLOBALLY. CAROLINE: -- ED: GREAT TO HAVE YOU ON THE PROGRAM HERE ON BLOOMBERG TECHNOLOGY. WE WILL BE RIGHT BACK, THIS IS BLOOMBERG TECHNOLOGY.
>> DO YOU HAVE A PLACE IN THE AI PC MARKET. >> THERE ARE BUNCH OF NVIDIA GPU'S AND WORK STATIONS, ALL OF OUR GPU'S HAVE THE SAME TENSOR CORES THAT ARE RUNNING IN THE CLOUD. AND SO EVERYONE OF OUR GPU'S USE AI TO DO ITS WORK. AI IS GOING TO TRANSFORM GAMING.
>> JENSEN HUONG BEING SAVED BY HIS MATE AND I GUESS THE QUESTION MOVES BEYOND DATA CENTERS WHEN DO THEY GET IN THE CPU GAME IN INTEL'S MARKET. THAT WAS JUST WHAT I HEARD. >> COME BACK NEXT YEAR AND A KNOW YOU'LL BE BACK. WE PREACH THE SALES OF WHAT THE EARNINGS ARE LIKE AFTER THE BELL TODAY. CLIPS OF THE MARKET WANTS TO SEE MORE THAN 200% INCREASE IN REVENUE.
WE ALSO ANTICIPATE A STATEMENT FROM THE U CAPE PRIME MINISTER AS SOON AS THE NEXT FIVE MINUTES.
2024-05-24 12:37
