Bloomberg Technology 08/18/2023
THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE. ED LUDLOW IS OFF. THIS IS BLOOMBERG TECHNOLOGY. ANALYSTS CALL OUT A PERFECT STORM IN THE MARKETS AMID SAPPING SENTIMENT.
LOOK AT THE OUTLOOK FOR THE TECH SECTOR. PLUS, CRYPTO. APPLICO -- LIQUIDATIONS AS PRICES FALL. WE LOOK AT WHAT IS BEHIND BITCOINS VOLATILE MOVES. GEARING UP TO BE THE BIGGEST IPO OF THE YEAR.
CHIPMAKER ARM IS SET TO LINE UP 28 BANKS FOR PUBLIC OFFERING. WE WILL BRING YOU THE LATEST ON THE COMPANY AND WHO ELSE IS ARGUING THE IPO. IT'S BEEN A VOLATILE WEEK FOR MARKETS. ABIGAIL DOOLITTLE, YOU DO IT SO WELL. ABIGAIL: WE HAVE HAD STOCKS ALL OVER THE MAP. APPLE FLIPPING TO THE UPSIDE, DOWN EARLIER SHARPLY, WEIGHING ON MAJOR INDEXES WHEN THEY WERE DOWN ACROSS THE BOARD MORE THAN .5%. AT THIS POINT, APPLE IS UP
SLIGHTLY. WE HAVE HEAVINESS ON THE MARKET FROM OTHER BIG TECH NAMES LIKE NVIDIA, MICROSOFT, AND META-PLATFORMS. NVIDIA WILL BE REPORTING NEXT WEEK. WILL THE STOCK THAT IS UP MORE THAN 190% ON THE WEEK, WILL THE RESULTS REALLY DELIVER WHAT INVESTORS ARE LOOKING FOR RELATIVE TO AI. THE WEEK IS CERTAINLY RISK OFF. STOCKS DOWN FOR A THIRD WEEK IN A ROW. THE NASDAQ 100 IS DOWN 2.4%. IT'S OFF OF THE LOWS AT THE LOWS WE WERE HEADING TO THE WORST WEEK SINCE MARCH 10TH.
THAT IS STILL TRUE FOR THE S&P 500, THE BROADER INDEX. THE NASDAQ 100 NOW HEADING TO ITS WORST WEEK IN ABOUT THREE WEEKS. AGAIN, THREE DOWN WEEKS IN A ROW. THE BIG TREND OF THE RALLY THIS YEAR, WE ARE SEEING CONTINUED CONSOLIDATION. AUGUST IS TYPICALLY SEASONALLY DIFFICULT.
TODAY IS OPTIONS EXPIRATION -- EXPIRATION. NVIDIA RELATIVE TO BROADER MARKETS ON THE YEAR, BIG OUTPERFORMANCE WITH THE S&P 500 UP 109%. PROBLEM AGO IT WAS UP 230%. THE BIG QUESTION IS COMING NEXT WEEK WHEN THE EARNINGS COME OUT AND THE OUTLOOK, WILL IT LIVE TO THE PERFECTION THAT IS ESSENTIALLY PRICED INTO THE STOCK EVEN WITH IT OFF THE HIGHS? CAROLINE: WELL SAID. WE WILL BRACE OURSELVES FOR EARNINGS THAT HAVE BEEN COMING FAST. RATHER EXTRAORDINARY EARNINGS COMING AFTER THE BELL TODAY AS WELL. WE WANT TO TALK ABOUT THIS WITH
HIM REFRESH, SENIOR RESEARCH ANALYST AT CLEAR BRIDGE. IT'S KIND OF A PERFECT STORM. COUNTERING THE TALK OF LIQUIDITY, WORRIES ABOUT CHINA, THE BOND MARKET SELLING OFF. IS IT OK TO STICK WITH TECHNOLOGY HOLDINGS NOW? HILARY: THAT'S A GOOD QUESTION. WITH THE 10 YEAR RISING AS RAPIDLY AS IT IS IT MAKES IT HARD FOR TECHNOLOGY TO OUTPERFORM. ESPECIALLY THE LONG BOND
TECHNOLOGY. BUT AT THE END OF THE DAY THE FUNDAMENTALS SEEM TO BE SET TO IMPROVE. SO, I WOULD LOOK TO THE CURRENT ENVIRONMENT TO BUILD POSITIONS, TO ADD POSSESSIONS. CAROLINE: TALK ABOUT THE FUNDAMENTALS
THAT WHEN YOU OVER. ARTIFICIAL INTELLIGENCE, IDIOSYNCRATIC ELEMENTS? OR, ARE YOU TALKING GENERALLY THE ECONOMY IN THE U.S. IS NOT AS DIRE AS THE SOME THOUGHT? HILARY: THERE ARE A FEW FACTORS. ARTIFICIAL INTELLIGENCE ABSOLUTELY PLAYS INTO IT.
I AM OF THE VIEW OF ROLLING RECESSION. I THINK TECHNOLOGY HAS BEEN IN A MILD RECESSION FOR THE BETTER PART OF THE LAST YEAR. WITHOUT THE RECESSION HAVING ACTUALLY MATERIALIZED I THINK TECH WAS POISED TO IMPROVE.
ENTERPRISE TECH WAS POISED TO SEE AN IMPROVEMENT OVERALL AS BUDGETS HAVE BEEN SET FOR A RECESSIONARY ENVIRONMENT. IN ADDITION, IN TERMS OF FUTURE EARNINGS THERE WERE A FEW GREEN SHOOTS. SOME COMPANIES TALK ABOUT THE OPTIMIZATION WORK, THE COST-REDUCTION FOCUS OF CUSTOMER STARTING TO WANE, STARTING TO SHOW SIGNS OF WANING. THERE WERE NEW PROJECT STARTS
AND A NEW PROJECT PICKUPS AND NEW WORKLOAD STARTS. THAT IS ENCOURAGING. THEN, YOU SAW TECHNOLOGY LAYOFFS STARTING TO WANE. THEY SLOWED A LOT OVER THE LAST FEW QUARTERS. MANAGEMENT TEAMS TALKED ABOUT INCREASED VISIBILITY AND IMPROVEMENT OF BUSINESSES FOR THE QUARTER. I THINK OVERALL, AND ON TOP OF
THAT, WE HAVE AI, THAT SHOULD BE A BIG DRIVER. CAROLINE: HOW MUCH IS A WORRY FROM YOUR PERSPECTIVE? HILARY: IT IS A WORRY ONLY INSOFAR AS THE GEOPOLITICAL BACKDROP CREATES SHOCKS TO THE ECONOMY THAT CAN DELAY RECOVERY. BUT I DO NOT VIEW THIS AS A DIRECT CONCERN. FOR, PARTICULARLY, CLOUD AND SASS NAMES. I THINK CORPORATE -- ENTERPRISE AND CORPORATE CUSTOMERS ARE ON THE GLOBE AND HAVE IMPERATIVES TO PURSUE.
THEY HAVE DELAYED THOSE FOR ESSENTIALLY NINE MONTHS PLUS. I THINK THEY ARE READY TO GET UNDERWAY WITH THEM, MORE OR LESS UNLESS WE HAVE A MASSIVE SHOCK TO THE ECONOMY. CAROLINE: IT IS INTERESTING YOU ARE SEEING GREEN SHOOTS. SOME MIGHT SAY APPLE IS A LITTLE UNDERWHELMING AND MICROSOFT TOO. FROM YOUR PERSPECTIVE, HOW ARE THESE COMPANIES PROVING THEMSELVES? IS IT JUST THAT WE AS INVESTORS OR ANALYSTS, WHEN WE HAVE ALL OF THE BY RATINGS OUT AND THAT SHARES HAVE RISEN SO FAR THERE IS JUST TOO MUCH PRICE TO PERFECTION SO FAR AS ABIGAIL HAS OUTLINED? HILARY: YOU ARE OUTLINING IT WELL.
I THINK WHAT HAPPENED AS WE HAD A REALLY STRONG FIRST HALF FOR THE GROUP THAT WAS COMPELLING FROM A PRICE-PERFORMANCE PERSPECTIVE. INVESTORS GOT VERY ENTHUSED ABOUT AI. PARTICULARLY WITH RESPECT TO MICROSOFT RESULTS I VIEWED THE REACTION HAS MORE OF A MISMATCH, A TINY MISMATCH, MORE THAN ANYTHING. MICROSOFT QUARTER WAS IN LINE. THEIR COMMENTARY ON AI WAS A LITTLE UNDERWHELMING, MORE TEPID THAN INVESTORS EXPECTED BUT THEY PROCEEDED TO EXPEND THEY HAD NOT ACTUALLY INTRODUCED THE MAJORITY OF AI ENABLED APPLICATIONS THAT INVESTORS WERE EXCITED ABOUT AND CUSTOMERS WERE GETTING EXCITED ABOUT. SOME OF THE KEY SEMICONDUCTOR CHIPS NEEDED TO TRAIN AND RUN THE LARGE LANGUAGE MODELS WERE NOT AVAILABLE YET, ONLY A SMALL SWATH BECAME AVAILABLE VERY RECENTLY.
SO, I VIEWED THE RESULTS AS NOT A DEMAND INDICATOR. I THINK DEMAND CONTINUES TO BUILD AND THE COMPANIES ARE DOING EXTRAORDINARILY WELL. THEY HAVE A PLAN TO DELIVER OVER THE COURSE OF THE YEAR. IT WAS JUST A TINY MISMATCH. CAROLINE: TALKING ABOUT THE FACT THAT IN THIS ENVIRONMENT, LOOKING AT THE NASDAQ 100, THREE STRAIGHT WEEKS OF LOSSES ON THAT BENCHMARK. WHERE DO YOU MAKE ADDITIONS? YOU SAID YOU MIGHT BE BUYING IN THIS STEP MARKET. HILARY: FROM A VALUATION PERSPECTIVE WITH ENTERPRISE OVERALL WE HAVE 10 ON THE PRE-PANDEMIC SIDE 10 YEAR AVERAGES EARLY IN THE YEAR WHEN I WAS HERE IN FEBRUARY WE GAINED A FEW MULTIPLE TURNS.
SINCE THAT POINT WE HAVE BEEN GIVING UP SOME MULTIPLE TURNS. I OF -- OVERTIME I EXPECT AI TO CONTRIBUTE MEANINGFULLY TO RESULTS AND DRIVE BOTH GROWTH AND VALUATION OVERTIME. I WOULD BE LOOKING TO COME AGAIN, THE 10 YEAR, THE ARBITER OF EVERYTHING. IT FEELS LIKE IT WANTS GOOD --
WANTS TO GO TOWARDS 5%. I'M NOT AN ECONOMIST. IF IT DOES THAT THERE IS FOR SURE MORE PAIN TO COME IN TECH. BUT I WOULD BE ADDING INCREMENTALLY BECAUSE IT'S ANYONE'S GUESS. CAROLINE: WOULD YOU LOOK AT CYBER NAMES? WE WILL BE DIGGING INTO PALO ALTO AFTER THE BELL TODAY. HILARY: I LIKE CYBER. I THINK CYBER FUNDAMENTALS ARE
GENERALLY RESILIENT. WE HAVE SEEN WEAKNESS IN FIREWALLS AND THE FIREWALL ARENA TO DATE AND I THINK THAT IS SMELLY A FUNCTION OF HAVING BEEN SUPPLY CONSTRAINED FOR SO MANY YEARS AND THERE WAS A LOT OF CUSTOMER ORDERING, LET'S CALL IT THAT. I THINK WE ARE NORMALIZING AFTER THAT. I DO TEND TO FAVOR SOME OF THE NEXT GENERATION CYBER NAMES, SUCH AS CLOUD STRYKER, OR EASY SCALER. TIED TO ZERO TRUST INITIATIVES.
THERE ARE GOVERNMENT MANDATES BEHIND THAT. PART OF THE INFLATION REDUCTION ACT HAS BEEN BEHIND THAT. AT THE END OF THE DAY PALO ALTO ITSELF IS A LEADER IN TECHNOLOGY. I THINK FOR TODAY'S ANNOUNCEMENT, VERY CONVENIENTLY ON FRIDAY, LATE AUGUST, WITHIN A TWO HOURS COVERS CALL. I THINK IT'S TIME TO GET THEIR THREE-YEAR PLAN. I HAVE NOTED WHEN THEY DO THAT THEY TEND TO BE CONSERVATIVE AT THE OUTSET OF THE PLAN. IT LOOKS LIKE THEY WANT TO
ANNOUNCE SOME AMOUNT OF CHANGE, MAY BE SHIFTING TOWARDS ANNUAL BILLIONS FROM MULTIYEAR UPFRONT BILLIONS THAT WOULD HURT FREE CASH FLOW. THEY MAY WANT TO PURSUE CERTAIN AREAS SUCH AS ZERO TRUST MORE ACTIVELY. IT IS HARD TO TELL. SOME OF THIS IS ANTICIPATED BY INVESTORS.
IT IS HARD TO TELL THE MAGNITUDE OF EXACTLY WHAT THEY WILL ANNOUNCE. CAROLINE, WHO THE STOCK IS TO -- CAROLINE: THE STOCK IS DOWN SIGNIFICANTLY SINCE THEY ANNOUNCED. HILARY FRESH FROM CLEAR BRIDGE. LET'S DIG IN ON PALO ALTO
NETWORKS. AUGUST 2 WAS WHEN WE REALLY STARTED TO SEE THE STOCK SELLOFF. THEY SAID THEY WOULD BE REPORTING RESULTS ON A FRIDAY. TODAY. AFTER THE BELL.
HIGHLY UNUSUAL. USUALLY IT GIVES US NUMBERS ON A MONDAY OR TUESDAY. IT IS GIVING INVESTORS CAUSE FOR CONCERN. BLOOMBERG'S BRIAN KLAAS TELIK ARE IS WITH US.
HE IS LOOKING AT WHAT PR DISASTER THIS COULD BE IF INDEED THEY ARE TRYING TO BURY SOME SORT OF BAD NEWS. EVERYBODY IS BRACED FOR IT. THE STOCK AS OF ABOUT 20% -- OFF ABOUT 20% SINCE I ANNOUNCED THE DATE. BRIAN: THIS IS EXTREMELY UNUSUAL. IT IS THE FIRST FRIDAY
AFTERNOON REPORT WE HAVE SEEN SENSE LATE 2023 THINK ABOUT ALL THE QUARTERLY EARNINGS WE HAVE HAD SINCE THEN. IT IS UNUSUAL, ATYPICAL. I SPOKE WITH THE COMPANY. A SPOKESPERSON TOLD ME THAT BETWEEN EVERYTHING THEY HAVE GOING ON THEY ARE DOING RESULTS, HAVE AN OUTLOOK.
THEY WERE GIVING THREE-YEAR MEETING TARGETS. THEY ARE ANNOUNCING A STRATEGY REVIEW. THEY HAVE A SALES NETWORKING MEETING NEXT WEEK. SO THEY HAVE A LOT GOING ON. THE COMPANY TOLD ME THEY WANT TO GIVE INVESTORS AND ANALYSTS TIME TO DIGEST ALL THE NEWS COMING OUT. THAT SOUNDS LIKE IT WILL BE A
LOT BUT IT'S VERY ATYPICAL AS FAR AS THE TIMING GOES. CAROLINE: WHAT ALSO ADDS CONCERN IS FOR THAT, ANOTHER CYBER COMPANY THAT SARLACC BIG GAINS THAN MANY ANTICIPATED. WHAT ARE THE HEADWINDS FACING SOME OF THESE COMPANIES AT THE MOMENT? RYAN: PALO ALTO COMES OUT AND SAYS IT WILL BE FRIDAY AND A STOCK FALLS. A COUPLE HOURS LATER FORTNET CUTS OF THEIR OUTLOOK. SAVITZ GARRITY HAS ALWAYS BEEN AN AREA THAT PEOPLE FEEL INSECURE AND DURABLE AS FAR AS THERE WILL ALWAYS BE DEMAND FOR IMPROVING CYBER AGAINST HACKS OR THREATS FREE THE FACT PEOPLE ARE SEEN WEAKNESS IN THIS VERY DEFENSIVE AREA OF SOFTWARE IS SEEN AS ANOTHER KIND OF HEADWIND FOR THE STOCK COMING AFTER THE UNUSUAL DATE. CAROLINE:
WHAT DID WE HEAR IN PARTICULAR IN TERMS OF THE MACROENVIRONMENT WEIGHING ON CLIENT DESIRE TO BE UPPING THEIR SPEND OR THINKING ABOUT CURTAILING OR FINE-TUNING THEIR CYBER SPEND. IS THAT WHAT WE HEARD FROM SOME OF THE OTHERS IN THE SPACE? RYAN: ABSOLUTELY. SIGNS OF WEAKER SPENDING. MAYBE SEEKING LONGER FOR DEALS TO CLOSE IF THE DEALS ARE NOT AS BIG AS MAVEN MAY HAVE EXPECTED BEFORE. ALL THESE ISSUES ARE HEIGHTENING CONCERNS ABOUT THE GLOBAL MACROECONOMIC BACKGROUND AS IT PERTAINS TO SECURITY SOFTWARE SPENDING IN PARTICULAR. CAROLINE TILDEN GREAT TO GET YOUR TAKE.
I HOPE IT'S NOT TOO LONG A DAY TO BE WORKING AFTER THE BELL. RYAN FOR STELLA GOT WILL BE THERE WITH THE OTHER INVESTORS KEENLY AWAITING THE NUMBER TO DROP AREA COMING UP, -- DROP. COMING UP, WE TALK ABOUT THE SELLOFF NOT JUST IN PALO ALTO NETWORKS BUT IN DIGITAL TOKENS. BITCOIN HITTING A TOW MONTH LOW -- TWO MONTH LOW. WE TALK ABOUT A SHAKEUP IN THE CRYPTO MARKETS. MEANWHILE, LET'S LOOK AT WE WORK FOR A MOMENT.
IT'S A PENNY STOCK. FOR THAT REASON IT NEEDS TO BE SPILLING. THEY SHARE IS DOING A ONE TO 40 RIGOROUS -- REVERSE STOCK SPLIT. BASICALLY THEY NEED TO ENSURE EVERY INDIVIDUAL SHARE IS WORTH MORE THAN ONE U.S. DOLLAR TO REMAIN WITHIN THE BENCHMARKS THEY WANT TO BE INCLUDED IN IN THE PUBLIC MARKETS.
SO THE PRESSURE ON THE STOCK IS STILL 13% RATED THEY WILL BE PROCEEDING WITH THE ONE FOR 40 REVERSE STOCK SPLIT TO REGAIN COMPLIANCE WITH THEIR LISTINGS. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: UNUSUAL COLUMN IN THE CRYPTO MARKETS IS OVER THIS WEEK GET A SUDDEN INCLINE SET OFF. MAYBE IT'S CONCERN OF INTEREST RATES.
MAYBE POTENTIAL BIG SALES OF CERTAIN TYPES OF THE ASSET THIS ROUTE PUSHED BITCOIN BUT AM 26,000 FOR THE FIRST TIME IN TWO MONTHS. THE COFOUNDER AND CEO OF A CRYPTO FUNDRAISING PLATFORM FOCUSED ON SOCIAL IMPACT, METAVERSE, A CALMING. STEPHEN, DO YOU BUY SOME OF THE RUMORS IN THE MARKET PERHAPS THIS IS SPARKED BY ONE KEY BIG SELLER, SPACEX. THERE WERE REPORTS COMING FROM THE WALL STREET JOURNAL. OR IS THIS JUST IN MARKETS? STEPHEN: I THINK IT IS JUST MARKET STRUCTURE.
I THINK THE SPACEX TELLING -- SELLING PROBABLY ALREADY HAVE AN. WE SAW BITCOIN TRADING AT ALL-TIME LOW VOLATILITY WHILE MARKET MAKERS WORK WITH AN OUT OF THE ECOSYSTEM. WE HAD A VERY ILLIQUID MARKET AND OPEN INTEREST ON FUTURES IS RAMPING UP SIGNIFICANT GREAT THE MOVE WAS EXPECTED. THERE HAD TO BE A FLUSH OUT. WE DID NOT KNOW IF IT WOULD BE TO THE UPSIDE OVER THE DOWNSIDE, BUT AS THE DOLLAR HAS BEEN GETTING STRONG RECENTLY A LITTLE BIT OF A SELLOFF IN CRYPTO MEANT LOANS WHERE ACQUITTED AND WE SAW A SHARP, QUICK MOVE TO THE DOWNSIDE. CAROLINE:
IS WRITING THE $25,000 LEVEL AS A LINE IN THE SAND. IS THERE ANY CATALYST TO THE UPSIDE? MANY DESIRE TO GET INTO BED GOING BECAUSE THERE WAS A DESIRE FOR A SPOT BITCOIN ETF, FOR EXAMPLE. STEPHEN: THERE ARE A LOT OF CATALYSTS TO THE UPSIDE. YOU HAD THE SPOT. ON A GALAXY CALL THEY SAID IT'S A MATTER OF WHEN NOT IF. YOU HAVE NEXT YEAR, TYPICALLY, A BULL RUN AFTER THE HAVING.
THERE COULD BE A RALLY INTO IT. WE HAVE AN SEC CASE AGAINST COINBASE LOOKING SHAKY AFTER JUDGE TORRES BASICALLY SAID TOKENS TRADED ON SECONDARY EXCHANGES ARE INVESTMENT CONTRACTS. LASTLY, YOU HAVE THE FED TIGHTENING CYCLE TOPPING OUT.
I THINK THAT A LOT OF CATALYSTS. BASICALLY IN SLANG THE NARRATIVE FOR THE FUTURE CRYPTO WILL CONDUCT ON. CAROLINE: I AM INTERESTING THAT YOU HAVE TALKED BEFORE ABOUT THE BITCOINS BODY TFN WHAT MINDSET ABOUT AN ON THE CALL FOR GALAXY. WHAT ABOUT THIS TALK ABOUT A NICHE ETF OR AT LEAST NEEDS FUTURES. HOW WOULD THAT GALVANIZE EFFORTS TOWARDS ALTERNATIVE POINTS? STEVEN: I THINK IT'S HUGE. THAT NEWS HAPPENING WITHIN
MINUTES OR HOURS OF THE LIQUIDATION IS INTERESTING. THE MAIN THING FOR ME WITH THAT ETF MEANS BASICALLY THAT CERIUM WILL NOT BE A SECURITY. I THINK THAT SHIP HAS SAILED AND IT WILL ALLOW PEOPLE TO GET MORE EXPOSURE TO ETH THAN THEY WOULD HAVE. I DO NOT KNOW HOW DEEP DOWN THE CORN MARKET CAP WE CAN GO IN TERMS OF WHAT WILL BE CONSIDERED A SECURITY OR NOT.
I THINK FOR SURE ETHERIUM THAT SHIP HAS SAILED AND IT WILL BE REGULATED AS A COMMODITY BY THE CFTC MOVING FORWARD. CAROLINE: THESE TIMINGS HAPPENED HOURS APART FROM EACH OTHER. WHAT YOU MEAN BY THAT? WAS THERE ANYWAY YOU THINK THAT WAS CATALYZING A SELLOFF IN BITCOIN? STEVEN: I DO NOT THINK THERE WAS ANY SPECIFIC TIMING OR REASON. I MEAN, I'M NOT SURE. I DON'T WANT TO BE
CONSPIRATORIAL. I THINK THE CALLS FOR LIQUIDATION WAS MORE MARKET STRUCTURE THAN ANYTHING. IT MAY HAVE BEEN AN INTERESTING COINCIDENCE AND SEE THAT THE ETH FUTURES ETF WAS APPROVED WITHIN HOURS OF LIQUIDATION. CAROLINE: CAN YOU TALK ABOUT WHO THE MARGINAL BUYER IS AT THE MOMENT OR WHERE WE ARE SEEING PEOPLE INTERESTED? IF YOU SAY THERE'S CATALYST TO THE UPSET OF BITCOIN AND OTHER ALTERNATIVE POINTS, WHO IS BUYING INTO THE MARKET REGIONALLY SPEAKING? INSTITUTIONALLY SPEAKING? STEVEN: WE ARE SEEING LONG-TERM HOLDERS TAKING OVER AT A SHORT TERM HOLDERS GETTING FLEECED AT THE MOMENT. I THINK THAT THE MARGINAL BUYER, ONE BIG CATALYST FOR ME WILL BE COINBASE AND AIRBASE CHAIN. I THINK THEY ARE REALLY
DISRUPTING THEMSELVES WITH THAT AND THEY WILL DO A LOT TO BRING RETAIL AND OTHER ASSETS ON CHAIN. I THINK WE SAW IN THE DEMISE OF THE LAST CRYPTO BULL RUN BLOWUPS OF CENTRALIZED ENTITIES. I THINK COINBASE ISRAEL -- IS REALLY LAYING THE GROUNDWORK FOR RETAIL TO PUT THEIR ASSETS IN DECENTRALIZED ENTITIES, D5, EFT'S, DECENTRALIZED APPS.
THERE THE SHIFT IN A ROTATION FROM WHERE THE MARGINAL BUYER CALMS AND WHERE THEY PARK THEIR ASSETS. CAROLINE: THE GIVES IMPACT CEO AND COFOUNDER. A RETURN TO VOLATILITY WHEN IT COMES TO CRYPTO. IT HAS BEEN A VOLATILE WEEK FRIDAY AND. -- ADYEN. IT RAISED ABOUT $20 BILLION IN MARKET VALUE YESTERDAY. IN AN INTERVIEW WITH BLOOMBERG TELEVISION THE COHEAD SAYS ON BACK OF THE WEEKEND THERE WILL NOT BE SURE BUYBACKS. LESSON.
>> WE ARE FOCUSED ON BUILDING A BUSINESS AND WE HAVE ALWAYS HAD A POLICY WHERE WE CONTINUE TO INVEST OUR FUNDS IN THE BUSINESS. THAT IS WHAT WE CONTINUE TO DO. IT IS CLEAR WE LOST SOME TRUST YESTERDAY. AND, YES, I THINK THE BEST APPROACH TO THIS IS NOW ACTUALLY LISTENING TO INVESTORS AND SEEING HOW WE CAN GET BACK SOME OF THAT. CAROLINE: THE ABIGAIL: CEO TALKING TO THE MARKET OPPOSED TO THEIR. COMING UP, ARM PREPARING FOR THE BIGGEST IPO OF THE YEAR WITH NO LESS THAN 28 BANKS.
WE WILL BRING YOU THE DETAILS NEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: IT'S TIME TO TALK TECHNOLOGY. AMERICAN TRADE GROUPS COMPRISE THE BIGGEST PLAYERS IN TECHNOLOGY AND MANUFACTURING AND ASKED THE U.S. GOVERNMENT TO RECONSIDER A TECHNOLOGY. THE COALITION INCLUDES SOME OF AMERICA'S LARGEST BUSINESSES INCLUDING APPLE IDENT HEALTH. -- INTEL.
THE LARGEST MAKER INDICATES THAT THE. APPLIED MATERIALS SEES A SHIFT TOWARDS ARTIFICIAL INTELLIGENCE AND IN THE RISE IN ENTERNET CONNECTED DEVICES. SOFTBANK BACKED ARM FILED A ROSTER OF UNDERWRITERS FOR ITS INITIAL PUBLIC OFFERING. 28 BANKS FOR THE DEAL. THE COMPANY IS AIMING TO BE VALUED IN A LISTING WE UNDERSTAND TO BE 60 BILLION DOLLAR-70 BILLION DOLLAR VALUATION. LEANNA BAKER IS THE PERSON THAT
HAS SO MUCH ABOUT THIS POTENTIAL NESTING AT BLOOMBERG. TELL US WHY 28 BANKS ARE NEEDED AND ALL THEIR VARIOUS TIERS OF IMPORTANCE. LEANNA: IT SOUNDS LIKE TOO MANY BANKS, BUT REMEMBER META-WAS FACEBOOK WHEN THEY WENT PUBLIC MANY YEARS AGO AND WHEN THEY WENT PUBLIC THEY HAD ABOUT 35 UNDERWRITERS. SO WHEN YOU HAVE A LARGE AMOUNT OF SHARES YOU NEED TO GET TO MARKET AND HELP STAFF -- TO HAVE DIFFERENT BANKS TO SYNDICATE OUT THE SHARES TO CLIENTS. ARM COULD RAISE SEVERAL BILLION
DOLLARS. IT IS BEST TO BE IN THE TOP IDEAS OF TECHNOLOGY OF ALL TIME. THEY WILL NEED ALL THE BANKS TO GET TO WORK. THIS COULD ALSO BE A
RELATIONSHIP BUILDING EXERCISE FOR ARM. THEY WANT TO KEEP GOOD RELATIONSHIPS WITH ALL THE BANKS. THAT'S WHY YOU WILL SEE THE WHO'S WHO OF WALL STREET ON THIS ONE. CAROLINE: AND INTERNATIONAL BECAUSE THEY WANT AND INTERNATIONAL INVESTOR BASE. I AM INTERESTING AS TO HOW THEY WILL BE EYEING THE CURRENT MARKET VOLATILITY AND WHETHER THAT REALLY MATTERS WHEN THEY'RE TRYING TO GET A HEFTY VALUATION. LIANA: THERE HAS CERTAINLY BEEN A DEBT IPO MARKET AND THERE ARE HOPES THIS WILL OPEN THINGS UP. WE REPORTED YESTERDAY INSTACART
IS LOOKING TO GO PUBLIC IN SEPTEMBER. IT FEELS LIKE ARM'S WARMING THINGS UP FOR EVERYONE. INSTACART WILL NOT BE AS BIG OF AN IPO AS ARM AND IT DOES NOT HAPPEN ONCE PATIENTS. THERE ARE STILL OTHERS TO LOOK FORWARD TO. IT HAS BEEN A DREARY YEAR FOR IPOS AND BANKERS WORKING ON THESE TRANSACTIONS. CAROLINE: 14 BILLION IPOS THIS YEAR COMPARED TO LIGHT 240 IN 2021. LIANA BAKER, WE THANK YOU AND
WAIT WITH BATED BREATH ON ARM. INSTACART IS PREPARING FOR AN INITIAL PUBLIC OFFERING IS IN A SEPTEMBER. THE COMPANY COULD PUBLICLY FILE PLANS WITH THE SEC HAS IN IS NEXT WEEK. INSTACART PREVIOUSLY CONSIDERED
A DIRECT LISTING, THE LIKES OF SPOTIFY. NOW IT PLANS TO DO A TRADITIONAL IPO ON THE NASDAQ. A REPRESENTATIVE FOR INSTACART DECLINED COMMENT. COMING UP, WE ARE JOINED BY EVER RESEARCH ABNORMAL SECURITY CEO TALKING ABOUT FUNDING FOR BIG PLAYERS IN THE SPACE AND HOW IT IS USING GENERATIVE AI AND THE IMPACT OF GENERATIVE AI ON CYBERSECURITY TO TACKLE IT AND HOW CYBERSECURITY RISKS ARE ON THE UPSIDE DUE TO GENERATIVE AI. FROM NEW YORK THIS IS BLOOMBERG TECHNOLOGY.
REDLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE. THE MARKETS ON THE DAY PARING SOME LOSSES BUT A DOWN WEEK NEVERTHELESS, THE SARE DOWN WEEK FOR THE NASDAQ 100 OFF BY .4%, OFF BY MORE THAN 2% ON THE WEEK. ALL OF THIS IN MANY WAYS A PERFECT STORM, WHETHER IT HAS
BEEN LIQUIDITY BECAUSE WE ARE IN AUGUST, OR ITS RISING BOND YIELDS THAT MANAGED TO GET A BID TODAY. THE 10 YEAR DOWN FOUR BASIS POINTS. LOOK HOW FAST WE HAVE RUN UP IN TERMS OF BORROWING COSTS ACROSS THE YIELD CURVE IN THE U.S. AND GLOBALLY, THE U.S. AND GLOBALLY COMMIT U.K. TO BE PRECISE.
BITCOIN UP BY .6%. MORE VOLATILITY IS COMING BACK TO CRYPTO. IS IT MARKET ACTION? IS IT LIQUIDITY? COULD IT BE REPORTS FROM THE WALL STREET JOURNAL THAT THERE IS A KEY SELLER THAT IS SPACEX. LET'S LOOK AT THE INDIVIDUAL STOCKS. ALL EYES ARE ON NVIDIA NEXT WEEK GIVING A LITTLE BIT OF PROFIT, THIS WEEK IT HAS BEEN ON THE HIGHER SIDE GIVING AWAY MORE THAN A PERCENTAGE POINT ON THE DAY AS WE TRY TO WORK OUT WHETHER THEY WILL BE INDEED POSTING EARNINGS THAT CAN LIVE UP TO THEIR PRETTY VALLOW -- PRETTY LOFTY VALUATION. DATA DOG UP BY ALMOST 3% AS THE
PRICE THE TARGET WAS ANNOUNCED ADDS $120. WE GET AN OUTPERFORM RATING MANAGING TO BRUSH OFF SOME OF THE WEAKNESS IN THE BROADER MARKET. ANDREW SHERMAN LIKES THE COMPANY AND IS BULLISH ON THEIR TOOLS.
FOLLOW OUT-EARN NETWORK -- PALO ALTO NETWORK EARNINGS AFTER THE BELL EARNINGS. FLAT ON THE DAY BUT THERE ARE QUESTIONS WHETHER THEY ARE PUTTING THEIR EARNINGS OUT FRIDAY AFTER THE BOW. CYBERSECURITY. FOLLOW -- PALO ALTO NETWORKS IS RUN OUT OF -- ONE OF THEM. THERE IS A RELATIVE NEW KID ON THE BLOCK, ABNORMAL SECURITY, AND A NATIVES ARE SEPARATE SECRET COMPANY THAT PRAYER PROTECTS AGAINST EMAIL ATTACKS. A BUSINESS FRAUD, MALWARE, AND CREDENTIAL FISHING. EVAN REISER IS THE ABNORMAL SECURITY CEO. WE ARE HERE TO TALK ABOUT HOW
YOU ARE USING AI IN SEPARATE SECURITY AND HOW CYBER ATTACKERS ARE USING IT. HOW ARE WE SEEING RISKS DIAL UP BECAUSE OF THE NEW LARGE LANGUAGE MODEL ERA WE ARE IN? EVAN: THANK YOU FOR HAVING ME. I THINK AI IS REALLY EXCITING. UNFORTUNATELY, CRIMINALS ARE VERY EXCITED TO USE THE TECHNOLOGY. THERE ARE THREE THINGS WE SEE
CRIMINALS USING TO TAKE ADVANTAGE OF GENERATIVE AI. ONE, EVEN PETTY CRIMINALS DO NOT HAVE CYBERSECURITY SKILLS. NOW THEY CAN USE THINGS LIKE CHATGPT TO BECOME VERY PROFICIENT IN TECHNOLOGY LANGUAGE SKILLS TO LAUNCH [HIH PHISHING ATTACKS. THE MODELS ALLOW PEOPLE TO CREATE VERY SOPHISTICATED NATIONSTATE ATTACKS EVEN BY PETTY CRIMINALS. CAROLINE: YOU WERE FOUNDED IN 2018 BEFORE CHATGPT AND THE LIKE. HAVE YOU SEEN THE SCALE, THE WALL, THE WORRYING DIAL UP.
ARE YOU HAVING TO FIGHT MORE CYBERATTACKS? EVAN: ABSOLUTELY. OVERALL, SABER -- CYBERATTACKS CONTINUE UP AND TO THE RIGHT. WITH GENERATIVE AI, CRIMINALS ARE USING THESE TO SEND IT MORE COMPLEX ATTACKS, FRAUD, AND SOCIAL ENGINEERING. I THINK UNFORTUNATELY IT WILL GO UP AND TO THE RIGHT FOR A WHILE. BUT WE ARE HOPING TO MAKE THE CURVE GO DOWN. CAROLINE: IS THAT BAD FOR YOUR REVENUE RUN RATES? NO -- MORE DEMAND IS NO BAD THING FOR YOU, EVAN.
CAN YOU TALK ABOUT MILESTONES AND HOW YOU ARE TAKING THAT TO THE MARKET IN TERMS OF POTENTIALLY FUNDRAISING? EVAN: ABNORMAL SECURITY IS ONLY ABOUT A FIVE-YEAR-OLD COMPANY. WE LAUNCHED OUR PRODUCT FOUR YEARS AGO. THIS WEEK WE ANNOUNCED 100 MILLION DOLLARS IN RECURRING REVENUE. WE HAVE HAD A LOT OF SUCCESS THAT ADDS TO THE SUCCESS OF THE MESSAGE ALREADY HAS A FIRST PRODUCT. IMO SECURITY IS THE NUMBER ONE
CAUSE OF FINANCIAL LOSS AND A. IT'S THE BIGGEST ATTACK VECTOR. I THINK THIS SPEAKS TO THE OPPORTUNITY WE HAVE TO PROTECT CUSTOMERS AND THE POWER OF THE TECHNOLOGY WE USE INTERNALLY TO STOP THINGS LIKE PHISHING FRAUD AND SOCIAL ENGINEERING. CAROLINE: WHAT IS INTERESTING IS YOUR RELATIONSHIP WITH CROWD STRIKE AND THAT YOU RAISED MONEY FROM THEM AND HAVE A CLEAR PARTNER GOING FORWARD. WHAT YOU SEE YOUR FUTURE AS EVOLVING AS WITH ABNORMAL SECURITY? NO YOU REMAIN AN INDEPENDENT COMPANY? -- WILL YOU REMAIN AN INDEPENDENT COMPANY? WILL YOU FOLD INTO ANOTHER? EVAN: WE BUILT THE COMPANY TO BE INDEPENDENT. WE EXPECT AN IPO IN THE FUTURE BUT THE TIMING IS NOT SUPER IMPORTANT.
WE ARE FOCUSED ON HAVING CUSTOMERS AND TAKING ADVANTAGE OF NEW AI TECHNOLOGIES TO STOP THE NEXT GENERATION OF CYBERATTACKS AND WE ARE FORTUNATE TO WORK WITH GREAT PARTNERS LIKE GROUND STRIKE THAT SHARE OUR MISSION AND VALUES AROUND PROTECTING CUSTOMERS AND BUILDING DEPLATFORM PLOT -- DEEP PLATFORMS THAT INTEGRATE TOGETHER TO CREATE THE BEST CUSTOMER OUTCOMES. WE ARE VERY CONSCIOUS OF PRODUCTS AND CUSTOMERS TO GET TO WHERE WE ARE TODAY. CAROLINE: WHERE ARE YOU IN TERMS OF GLOBAL DEMAND? WHO ARE YOUR KEY CUSTOMERS? EVAN: GREAT QUESTION. WE ARE PRIMARILY FOCUSED IN
NORTH AMERICA TODAY AND WE WILL BE EXPENDING A LOT MORE INTERNATIONALLY. THOUGH WE HAVE BEEN IN THE MARKET ABOUT FOUR YEARS WE PROTECT 12% OF THE FORTUNE 500 AND WE EXPECT THAT TO GROW SUBSTANTIALLY OVER THE NEXT COUPLE YEARS. WE SEE MEL SECURITY -- EMAIL SECURITY AND CLOUD'S ATTORNEY AS A GLOBAL PROBLEM GRADE OUR BUSINESS IS TO PROTECT EVERY ORGANIZATION AND PERSON IN THE WORLD. CAROLINE: ARE YOU AND A OPTIMIST? ARE YOU WORRIED? IT SEEMS LIKE AN ATTORNEY THE OTHER THAT ALL THE LETTERS WERE BEING WRITTEN ABOUT EXISTENTIAL ISSUES TO DO WITH AI. WHERE YOU SIT ON THAT? EVAN:
I THINK AI IS AT WILL. LIKE -- IS A TOOL. LIKE ALL TOOLS IT CAN BE USED FOR GOOD AND BAD. I THINK AI WILL HAVE A HUGE IMPACT ON THE WORLD AND I AM BULLISH ON LONG-TERM PROSPECTS RATE I THINK THE NEXT YEAR OR TWO WILL BE SCARY AS CRIMINALS GET ACCESS TO MORE GENERATIVE AI TOOLS. IN THE LAST TWO MONTHS WE SAW MORE SOPHISTICATED TEXT COMING FROM GENERATIVE AI.
PHISHING, SOCIAL ENGINEERING. MORE THAN THE LAST FIVE YEARS. THE NEXT YEARS ARE A LITTLE SCARY BUT I'M VERY BULLISH LONG-TERM WITH THE OPPORTUNITY FOR AI TO NOT JUST HELP CUSTOMERS PROTECT THEIR ORGANIZATIONS, BUT HAVE A TRANSFORMATIVE EFFECT FOR HOW WE USE TECHNOLOGY. CAROLINE: AUDIBLY ARE USING MORE INTEREST FROM VCS? I KNOW YOU ARE SAYING YOU ARE A VEGAN L.A. EYEING IPO AND YOU ONLY DID A SERIES B, SERIES C, EVEN RELATIVELY RECENTLY. ARE YOU LOOKING AT OPPORTUNITIES? DOES EVERYBODY WANT TO BE HITTING SOME FUNDS TO AI? EVAN: THERE IS NO SHORT OF INTEREST IN COMPANIES THAT ARE AI NATIVES FOCUSING ON CUSTOMER PROBLEMS OUT OF $100 MILLION PLUS SCALE. THERE IS NO SHORT OF INTEREST. WE OPERATE A VERY SUSTAINABLE AND DURABLE BIG BUSINESS.
WE HAVE NO NEED TO RAISE MORE MONEY. WE ARE FOCUSED ON EXPANDING OUR TECHNOLOGY PLATFORM TO PROTECT MORE CUSTOMERS AROUND THE WORLD. CAROLINE: YOU ARE A SEASONED TECHNOLOGIST AND YOU HAVE BEEN PART OF BIG TEAMS. I HAVE TO ASK. YOU WERE PRETTY SIGNIFICANT IN TWITTER AT ONE POINT THINKING ABOUT HOW ITS OWN MACHINE LEARNING WAS WORKING WITHIN THE ADVERTISING OF TWITTER.
HOW DO YOU THINK ABOUT X? YOU USE IT? HOW DO YOU FEEL ABOUT THAT OF ELEMENT OF THE COMPANY? EVAN: I DON'T KNOW TOO MUCH ABOUT IT BECAUSE I PRIMARY FOCUS NOW ON SOVEREIGN SCAREDY. MY BACKGROUND IS IN MACHINE LEARNING AND I ARE COMING FROM THE ADVERTISING WORLD BUT I HAVE LOST A LITTLE BIT OF TOUCH. WE ARE TAKING TODAY THE CORE TECHNOLOGIES, OVERSEEING THE BEHAVIOR AND INTEREST AND THE WAY PEOPLE RESPOND TO DIFFERENT INTERACTIONS AND DR.
CYBERSECURITY. FROM -- 27 SCAREDY. FROM A TECHNOLOGY PERSPECTIVE WE ARE VERY SIMILAR. I AM LOOKING FORWARD TO DESIGNING TECHNOLOGIES TO GET PEOPLE TO CLICK ON ADVERTISEMENTS USED FOR A MUCH MORE WORTHY CAUSE, TO STOP FRAUD. CAROLINE: EVAN REISER THE ABNORMAL SECURITY CEO STICKING VERY MUCH WITH HIS THEME OF CYBERSECURITY HAD HIS OWN COMPANY AND WE THANK HIM FOR THAT. COMING UP, HOW AI IS HELPING TO REVOLUTIONIZE THE HEALTH CARE INDUSTRY, CLOSING EVEN THE GENDER HEALTH CARE GAP.
MUCH MORE IS NEXT. THIS IS BILL BURCK TECHNOLOGY. -- BLOOMBERG. CIVIC COLONY OF BACTERIA IS PICKED AND INOCULATED AND THE DENSITY IS SCALED UP AND INTO EACH STAGE OF THE SAMPLE IS TESTED FOR CONTAMINANTS. IN ANAEROBIC FERMENTATION THE BACTERIA NEEDS FOOD. THIS IS THE FOOD.
IT IS BLENDED WITH SPECIAL WATER FROM THE MACHINE IN A HIGH-TECH -- BAG AND INERT GASES ARE ADDED FOR THE PERFECT ENVIRONMENT. LATER THE BACTERIA STARTER IS COMBINED WITH THE FOOD SOLUTION AND ALLOWED TO FERMENT. AT THE RIGHT DENSITY THE BACTERIA IS DRAWN OUT OF THE MACHINE MYCOBACTERIA MILKSHAKE AND POURED IN A CAP -- CAKE PAN TRACING. IT IS TESTED AGAIN, FREEZE-DRIED, AND STORED IN SUPER FRIDGES. FINALLY THE FREEZE-DRIED BACTERIA CAKE IS GROUNDED TO A POWDER, SHIPPED OFF, PUT INTO CAP SEALS, AND BOTTLED. CAROLINE: YOU KNOW HOW MUCH HE LOVED GEEKING OUT OVER THAT ONE.
LET'S STICK WITH HEALTH CARE. WE ALWAYS TALK ABOUT ADVANCEMENTS FROM ARTIFICIAL INTELLIGENCE TECHNOLOGIES WILL REVOLUTIONIZE A SPACE THAT WAS NOT INCLUDED IN U.S. CANNOT -- CLINICAL TRIALS LEGALLY UNTIL 1993, WOMEN'S HEALTH. MINORITY HEALTH.
LET'S TALK ABOUT THIS WITH PRIYANKA JAIN THE COFOUNDER AND CEO OF EVVY A COMPANY FOCUSED ON DEREK -- UNDERRESEARCHED BIOMARKERS. HOW ARE YOU SEEING THE WAVE OF INTEREST IN ARTIFICIAL INTELLIGENCE BENEFIT YOUR RUN RATE WITH EVVY? PRIYANKA: GREAT QUESTION. WE STARTED BECAUSE OF THE PROLIFERATION OF AI IN HEALTH CARE AND COMPANIES LEVERAGING DATA TO MAKE THE HEALTH-CARE INDUSTRY MORE EFFECTIVE. GIVEN WHAT YOU SAID, THAT WOMEN WERE NOT IN CLINICAL RESEARCH UNTIL 1993, THERE IS SO MUCH MISSING DATA ON THE FEMALE BODY. IF WE WILL TRAIN ALL THESE ALGORITHMS TO HELP US UNDERSTAND WHAT IS WRONG AT THE DOCTOR'S OFFICE OR WHAT IS MOST LIKELY TO HELP US, BUT IT DID NOT INCLUDE ANYONE WHO LOOKED LIKE YOU AND I, WHO IS TO SAY THAT WOULD BE EFFECTIVE ON US? WE SET OUT TO SAY, WHAT WOULD IT LOOK LIKE TO BUILD A DECISION HEALTH CARE PLATFORM CENTERED ON THE FEMALE BODY. WHAT ARE THE DATA SETS MISSING
IN OUR UNDERSTANDING AND ABILITY TO DO THAT? CAROLINE: DO YOU CALL YOURSELF A HEALTH CARE COMPANY MORE? YOU MUST HAVE TO GO AROUND GETTING ALL THE SAMPLES AND DATA. WHAT IS ONE SOURCE THAT TO RUN THE ION MODELS? PRIYANKA: GREAT QUESTION. WE RUN A PRECISION FEMALE HEALTH CARE SERVICE FOCUSED ON THE BACTERIAL MICRO BIOME, THE LEADING REASON WOMEN GO TO THE DOCTOR IN THE U.S.. WHEN WE GO TO THE DOCTOR WE ARE MORE LIKELY TO BE MISDIAGNOSED TO THEM CORRECTLY DIAGNOSED AND MORE LIKE THEY DID NOT GET BETTER. WE BUILT A PLATFORM LEVERAGING TECHNOLOGY ENDED INTO TO BETTER CHARACTERIZE WHAT IS ACTUALLY GOING ON FOR SOMEBODY. WE HAVE FIRST OF ITS KIND PRECISION TESTING AND WE ACTUALLY USE DATA TECHNOLOGY AI TO UNDERSTAND WHAT IS MOST LIKELY TO HELP THAT SPECIFIC PERSON.
NO TWO PEOPLE ARE THE SAME. NO TWO WOMEN ARE THE SAME. SO BY ACTUALLY DELIVERING MUCH BETTER CARE POWERED BY DATA, WE ARE GATHERING THE DATA ON THE BACK END IT TO BE ABLE TO ENABLE A MUCH BETTER FUTURE OF WOMEN'S HEALTH CARE. CAROLINE: I AM STILL STUCK ON THE FACT THAT MORE WOMEN GET WORSE THAN GET BETTER. PRIYANKA: YES, SIR. CAROLINE: WHO IS, THEREFORE ADOPTING THIS.
WHO DO YOU WANT TO GET ON BOARD FROM THE HEALTH CARE COMMUNITY TO USE THIS IN NOT JUST TRIALS BUT REAL-WORLD APPLICATION? PRIYANKA: THE FIRST PERSON MOTIVATED TO HELP THINGS GET BETTER IS THE PATIENT, THE PERSON SUFFERING. WE HAVE SEEN SOME ANY WOMEN SUFFERING WITH SYMPTOMS THAT ARE NOT GETTING ANSWERS, NOT GETTING BETTER, THAT ARE EXCITED TO HAVE NEW DATA ON THEIR OWN BODIES. THEY ARE TRYING TO UNDERSTAND. WE ARE SEEING THIS IN MANY
INDUSTRIES, CONSUMERS FINALLY ABLE TO TAKE CONTROL OF THEIR HEALTH BECAUSE OF THE PROLIFERATION OF TECHNOLOGY THAT HAS MADE IT MORE AFFORDABLE AND POSSIBLE TO EVEN HAPPEN. WE FIND, FIRST, IT CAME FROM THE WOMEN THAT WERE LIKE, WE DEMAND BETTER ANSWERS. WE WILL BUY THIS WITH OUR OWN MONEY BECAUSE WE WANT TO KNOW WHAT IS GOING ON. WE FIND ACTUALLY 98% OF OUR MEMBERS ACTUALLY CHOOSE TO HAVE THEIR DATA BECOME PART OF RESEARCH. I THINK THAT SPEAKS SO DEEPLY TO THE FRUSTRATION WE HAVE FELT IN THE HEALTH CARE SYSTEM IN THE DIET -- THE DESIRE FOR OUR DAUGHTERS TO HAVE A BETTER EXPERIENCE. WE STARTED VERY MUCH WITH WOMEN AND FINALLY A COUPLE YEARS LATER WE ARE SEEING A LOT OF EXCITEMENT FROM DOCTORS, WHETHER PCPS, OB/GYN, DOCTORS THAT ARE FRUSTRATED THEY DON'T HAVE BETTER TOOLS OR INFORMATION HELP PATIENTS. CAROLINE:
WHEN PEOPLE ARE SAYING, THERE ARE EXISTENTIAL RISKS, CYBER RISKS, RISK CONCERNS AROUND AI. THEY LOOK TO WHERE WE WILL SEE DRAMATIC CHANGE. YOU SEE HEALTH CARE AS FOR MOST IN TERMS OF INDUSTRIES THAT WILL BE DISRUPTED BY THIS. PRIYANKA: ABSOLUTELY, IN SO MANY WAYS. NOT ONLY THE WAYS WE BETTER DIAGNOSE PEOPLE AND HELP THEM COME UP WITH BETTER TREATMENTS. AT THE INN OF THE DAY HOW CAN YOU POSSIBLY IN THE HUMAN BRAIN UNDERSTAND EVERY SINGLE MEASUREMENT OF WHAT IS GOING RIGHT AND WRONG IN YOUR BODY? UNDERSTAND WHAT DISEASE THAT IS MOST LIKELY TO BE AT HOW YOU WILL FIX IT.
THAT IS IMPOSSIBLE TO ASK OF THE HUMAN BRAIN GIVEN THE FACT EVERY PERSON IS SO DIFFERENT. I THINK IT IS VERY IMPORTANT THAT IT IS DONE CAREFULLY. AND IT DONE WELL, RIGHT? WE THINK ABOUT WHAT DATA WE ARE USING TO TRAIN THE ALGORITHM. DOES IT INCLUDE PEOPLE THAT WILL THEN USE THE ALGORITHM? IT IS AND PROBABLY PUT UP THE RIGHT GUARD RAILS AND ASK THE RIGHT QUESTIONS AND DO NOT JUST ASSUME AI THAT IS WELL-DESIGNED MEANS IT WILL BE WELL-DESIGNED FOR HEALTH CARE. I THINK HEALTH CARE NEEDS IT OWN -- ITS OWN SET OF RULES AND THOUGHTS AS WE BRING THIS REVOLUTIONARY TECHNOLOGY INTO THE SPACE SO WE DON'T ACTUALLY WIDEN A GAP THAT ALREADY EXISTS.
CAROLINE: WHO IS THINKING ABOUT THAT? YOU HAVE ALREADY CAPTURED THE IMAGINATIONS OF VCS AND YOU ARE LOOKING TO GET INTO THE WORLD OF HEALTH CARE. WHAT ABOUT THE ADMINISTRATION? ARE YOU HAVING DISCUSSIONS? ARE PEOPLE COMING TO STARTUPS AND BIGGER COMPANIES IN AI TO THINK ABOUT RULES, GUARDRAILS, SAFETY? PRIYANKA: DEFINITELY. I THINK ONE, THE COMPANIES, DEFINITELY, THIS TIME AROUND ARE BEING SMARTER ABOUT THIS. IT IS SOMETHING WE THINK ABOUT ALL DAY EVERY DAY BECAUSE WE ARE A FEMALE LEADERSHIP TEAM.
OR IT COULD BE BECAUSE WE ARE JUST A COMPANY STARTED TODAY. WE ARE SEEING REGULATORY BODIES LIKE THE FDA ARE LOOKING. THEY ARE INTERESTED. THEY WANT TO UNDERSTAND WHAT THESE NEW TECHNOLOGIES ARE AND HOW TO SET UP GUIDELINES. THEY HAVE A VARIETY OF WORKING GROUPS WITH COMPANIES WITH INDUSTRY AND ALSO ACADEMICS AND ETHICISTS.
I HAVE HOPE THAT WE WILL BUILD THE RIGHT GUARD RAILS AND UNLOCK AN AGE OF PRECISION MEDICINE WHERE WOMEN FINALLY GET BETTER. RIGHT NOW WE ARE DIAGNOSED ON AVERAGE FOUR YEARS LATER THAN MEN ACROSS OVER 700 DISEASES. IMAGINE IF WE COULD ACTUALLY LOOK AT THE DATA YOUR BODY -- OF YOUR BODY AND UNDERSTAND WHAT IS GOING ON.
THAT GIVES ME A LOT OF HOPE. CAROLINE: GREAT STORYTELLING AND GREAT INTEREST IN THE COMPANY GREAT THANK YOU FOR COMING ON OUT TELLING A SLIGHTLY DEPRESSING STORY THAT MIGHT BE CHANGING SOON. EVVY CO-FOUNDER PRIYANKA JAIN THERE. NEXT, CAN OPENAI OVERSEE CONTENT MODERATION? AND, SHARES OF UBER AND LYFT BEING THREATENED TO PERHAPS STOP DOING BUSINESS IN MINNEAPOLIS AFTER THE CITY COUNCIL ADOPTED A RESOLUTION THAT WOULD SET A MINIMUM WAGE FOR WHITE SHIRT -- RIDE-SHARE DRIVERS.
SHOWS ARE HIGHER, THOUGH, BY ONE PERCENTAGE POINT. THIS IS BLOOMBERG TECHNOLOGY. REDLINE: WHAT COULD CONTENT MODERATION LOOK LIKE IF YOU USED CHATGPT? OPENAI'S TESTING SYSTEMS AND INVITING CUSTOMERS TO EXPERIMENT WITH IT. OPENAI SAYS IT'S TOOLS CAN HELP BUSINESSES PERFORM SIX MONTHS OF WORK IN A DAY OR SO. BLOOMBERG TECHNOLOGY'S RACHEL MET JOINS US NOW. I WAS LEFT LITTLE BIT HEAD
SCRATCHING ON THIS ONE. BECAUSE, I THOUGHT A LOT OF CONTENT MODERATION WAS ALREADY IN GENERATIVE AI. RACHEL: CORRECT. CONTENT MODERATION USES AI IN CONCERT WITH HUMANS. IT'S A REALLY TOUGH JOB OPENAI
IS SAYING, TURN OVER ENTIRELY TO AI. THEY ARE THINKING A COUPLE THINGS. ONE, THAT IT CAN HELP WITH CONTENT MODERATION'S. THEY ALSO THINK IT COULD HELP COMPANIES, LIKE, APPLY POLICY CHANGES MUCH MORE QUICKLY THAN THEY MIGHT HAVE IN THE PAST. WHICH IS AN INTERESTING WAY OF LOOKING AT IT. SO, THIS IS WHAT THEY ARE TESTING OUT AND INVITING OTHER COMPANIES TO TRY AS WELL VIA THEIR API.
IT WILL BE INTERESTING TO SEE. CAROLINE CONNAN CAN YOU DIG IN TO THE REFINING OF POLICYMAKING? HOW DOES THAT HAPPEN USING GENERATIVE CHATBOTS. RACHEL: WHAT THEY ARE SAYING FOR INSTANCE IS MAYBE THEY HAVE REFINED THEIR CONTENT MODERATION POLICY AND THEY WANT TO MAKE IT EVEN BETTER TO EXCLUDE CERTAIN KINDS OF THINGS. LIKE, DIFFERENT KINDS OF --
TALK ABOUT DIFFERENT KINDS OF CRIME ON THE SOCIAL NETWORK FOR INSTANCE. LIKE IF SOMEBODY IS SAYING, CAN YOU HELP ME STEAL A CAR? THIS WAS AN EXAMPLE THEY GAVE IN BLOCK POST. -- BLOG POST. INITIALLY AN AI SYSTEM MIGHT NOT BE ABLE TO SPOT OUT AS OBJECTIONABLE CONTENT. IT MIGHT SAY, THAT'S NOT A VIOLENT CRIME. MAYBE THEY WERE TALKING ABOUT VIOLENT CRIME AS BEING NOT OK ON THE SOCIAL NETWORK BEFORE. SO, THEY CAN USE GPD FOR -- FOUR TO HELP RETRAIN THEIR SYSTEM VERY QUICKLY WITH LIKE A SET OF DATA THAT WOULD HELP MAKE IT CLEAR TO THE SYSTEM THAT THIS IS SOMETHING THAT IS OBJECTIONABLE AND THEN THEY COULD ROLL THAT OUT FASTER. THE IDEA WOULD BE TO ROLL OUT
THE CHANGES FASTER THAN THEY MIGHT OTHERWISE. CAROLINE: HOW ABOUT HELPING THOSE POOR PEOPLE WHOSE JOB IT IS TO BASICALLY LOOK AT ALL OF THE OBJECTIONABLE CONTENT AND ANALYZE IT? IS THERE ANY PATH TOWARDS NOT EATING THE HUMAN EYE THAT CAN BE SO EFFECTIVE -- AFFECTED BY THESE THINGS? RACHEL: ONE THING ABOUT CONTENT MODERATION THAT IS SO TRICKY, BECAUSE, IT'S AWFUL PEOPLE HAVE TO LOOK AT REALLY HORRIBLE IMAGES. THIS CAN BE REALLY DAMAGING TO PEOPLE. I MEAN, WE KNOW THAT. WE CAN HUGHES MACHINE -- USE MACHINES TO OFFLOAD SOME OF THAT ARE AT LEAST MAKE A TOP-LEVEL DECISION THAT CAN THEN BE PASSED BACK. SOMETHING ALREADY BEING DONE. SINCE GPD -- GPT4 I AM NOT SURE IF IT WILL BE USEFUL FOR THIS SORT OF MACHINE VISION TASK AT THIS TIME. I THINK THEY ARE TALKING MORE ABOUT WRITTEN STUFF.
IN GENERAL IT IS REALLY HARD TO USE MACHINES TO OFFLOAD THIS STUFF ENTIRELY BECAUSE A LOT OF IT IS DEPENDENT ON CONTEXT. WHETHER IT IS WRITTEN OR AN IMAGE OR A VIDEO. WHAT LOOKS BAD TO SOME PERSON, OR IF I POST SOMETHING AND I MEAN ONE THING, SOMEBODY LOOKING AT IT IN ANOTHER TIME AT ANOTHER PLACE MAY NOT SEE MY CODED MESSAGE.
PEOPLE ARE PRETTY CLEVER ON THE INTERNET AND THEY DO NOT ALWAYS SAY OR POST SOMETHING OBVIOUSLY HORRIBLE. CAROLINE: SOME PEOPLE WOULD QUITE LIKE AI TO TAKE THEIR JOB. NOW, NOT ABLE TO. BLOOMBERG TECHNOLOGY'S RACHEL
METZ. DOES THAT FOR THIS ADDITION THIS WEEK OF MEMBER TECHNOLOGY. CHECK OUT OUR PODCAST ON THE TERMINAL. ONLINE, APPLE, SPOTIFY,
IRONHEART. -- I HEART. I DID THE MEANTIME WE WISH YOU
2023-08-19 17:16
