Stock Turnaround and Google's Monopoly Ruling | Bloomberg Technology
>> FROM THE HEART OF INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ED: LIVE FROM SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. FULL MARKET COVERAGE AS STOCKS STAGE A TUESDAY TURNAROUND AFTER $6.5 TRILLION WAS WHITE FROM MARKETS MONDAY. WE SIT DOWN WITH THE CTO OF
PALANTIR. THE U.S. RULES GOOGLE ILLEGALLY MONOPOLIZED THE SEARCH MARKET THROUGH EXCLUSIVE DEALS. IT'S A BIT OF A SIGH OF RELIEF ON TUESDAY. CALL IT A TURNAROUND, THIS IS WHAT FINANCIAL MARKETS LOOK LIKE. NOTABLE GAINS ON THE NASDAQ 100. CHIP STOCKS RECOVERING AFTER IT WAS TECHNOLOGY THAT LED TO THE SELLING IN EQUITY MARKETS ON MONDAY. VOLATILITY AROUND GROWTH
CONCERNS AND ECONOMIC DATA AND THEN BITCOIN IS INTERESTING AS WELL. 56,000 DOLLARS PER TOKEN. LET'S MOVE OVER TO THE SINGLE NAMES. EARNINGS ARE A BIG PART OF THE STORY AT THE MOMENT. TWO IN PARTICULAR WE ARE LOOKING AT. UBER AT ALMOST 8%, STRONG ON
THE BOTTOM LINE. WE GET TO THAT IN JUST A MOMENT. COMING UP THE CTO OF PALANTIR UPDATED OUTLOOK FOR REVENUE AND PROFIT. AI DEMAND FROM COMMERCIAL AND GOVERNMENT CUSTOMERS. A REALLY INTERESTING CONVERSATION IN THE NEXT SEGMENT.
WE WILL GO BACK TO MARKETS. JOINING US AS THE CHIEF INVESTMENT OFFICER AT THE BUNSEN GROUP. THE STORY MONDAY WAS ABOUT SOME OF THE MEGA-CAP TECH NAMES.
SOME OF THOSE THAT ARE FUELED THE GAINS IN THE FIRST HALF OF THE YEAR. SOME OF THOSE NAMES YOU ARE PARTICULARLY CONCERNED ABOUT SO YOU SAT ON THE SIDELINES AWAY FROM THEM. HOW DO YOU REACT TO THE LAST ONE HE FOUR HOURS THEN? >> IT WASN'T REALLY A MONDAY -- THE LAST 24 HOURS THEN? DAVID: THERE WAS ALREADY QUITE A BIT OF SLIDE GOING ON AND I THINK THAT DOES STEM FROM THE OVERVALUATION. IT'S PRETTY STUNNING WHEN YOU
SEEM -- WHEN YOU SEE A NAME LIKE NVIDIA BEDDED BEEN DOWN AND WAS STILL TRADING AT ABOUT 59 TIMES EARNINGS, A 30 TIME SALES AFTER SUCH A VIOLENT CORRECTION. I THINK EVEN TODAY WHEN YOU LOOK AT APPLE STILL BEING NEGATIVE WITH THIS KIND OF BOUNCE BACK RALLY TODAY, IT DOES FEEL TO ME LIKE A ROTATIONAL -- ROTATION OF LEADERSHIP IS UNDERWAY. CAROLINE: WE REITERATED -- ED: WE REITERATED ON YESTERDAY SHOW THE FRIDAY MARCH FOR STRAIGHT WEEKLY DECLINES ON THE NASDAQ 100. I GUESS THE QUESTION FOR SOMEONE LIKE YOU IS WHAT DO YOU DO NOW? IS THE DRAWDOWN OR TECHNICAL CORRECTION ENOUGH THAT YOU START TO LOOK AT THE NAMES THAT FOR MANY, THEY ARE -- THERE IS NO ALTERNATIVE TO HOLDING THEM? DAVID: THERE ARE PROBABLY INVESTOR CATEGORIES THAT MIGHT WANT TO LOOK AT SOMETHING THERE, THEY CERTAINLY SHOULD NOT BE DOING IT BECAUSE THEY BELIEVE IT'S REACHED A VALUE, THESE ARE STILL EXTREMELY EXPENSIVE STOCKS.
FOR US AS DIVIDEND GROWTH INVESTORS THE TINY LITTLE DIVIDEND THE INVIDIOUS AND APPLES PAY IS NOT ENOUGH TO WET OUR BEAK AND SO THEY WOULD HAVE A LONG WAY TO GO TO START RETURNING CASH TO SHAREHOLDERS FOR US TO BE ATTRACTED BUT EVEN APART FROM OUR DIVIDEND GROWTH ORIENTATION EVALUATIONS ARE STILL HIGH, I BEGAN PROFESSIONALLY MANAGING MONEY IN THE 1990'S SO I WILL BE FOREVER SCARRED BY THE REALITY OF WHAT HAPPENS WHEN YOU OVERPAY FOR GOOD COMPANIES. VERY BIG AND SUCCESSFUL COMPANIES THAT HAVE A GENERATIONAL SUCCESS AND YET THEIR STOCK GOES NOWHERE FOR 10 OR 15 YEARS. STILL NOT GETTING BACK TO 1999 LEVELS. THOSE STORIES ARE REAL AND I BELIEVE THEY WILL BE THE CASE FOR SOME OF THESE NAMES. INVESTORS HAVE TO BE CAREFUL. ED:
MAYBE EVEN DELL AS INTERESTING APPENDAGES TO THE INFRASTRUCTURE BUILDOUT THAT'S HAPPENING. I WROTE ABOUT INDITEX DAILY. IF YOU THINK ABOUT THE GROWTH CONCERN, INVESTMENT OR CAPITAL EXPENDITURES IN THE DATA CENTER SEEM TO BE PLOWING AHEAD REGARDLESS OF SHORT-TERM JITTERS.
IS THERE AN OPPORTUNITY FOR YOU AND THAT SPACE OR DO YOU THINK IT IS OVERDONE ALREADY AT THIS POINT? DAVID: THAT IS AN INTERESTING STORY BECAUSE YOU CAN GET CASH FLOW AND SO FOR EXAMPLE BLACKSTONE HAS BECOME ONE OF THE LARGEST INVESTORS INSTITUTIONALLY IN THE DATA CENTER STORY AND WE ARE ABLE TO GET A REAL YIELD AND BECOME A LAND WAR TO DATA CENTERS. A LITTLE LESS CONCERNED WITH THE BUSINESS FUNDAMENTALS AS TO HOW MUCH MICROSOFT WILL BUY FROM NVIDIA OR WHAT THE MODERNIZATION OF AI WILL BE. -- MONETIZATION OF AI WILL BE. DATA CENTER BECOMES A STORY FROM A BRICK-AND-MORTAR STANDPOINT YOU CAN MAKE MONEY IN. ED: NEVER BEFORE DID I THINK I WOULD BE WRITING ABOUT REIT'S IN MY TECHNOLOGY NEWSLETTER AND I USED THEIR FORECAST DATA FOR THE PIPELINE AS A WHOLE.
PALANTIR STRENGTH, UBER STRENGTH, LAST WEEK WE LEARNED FROM MICROSOFT IF YOU MISS ESTIMATES YOU ARE IN TROUBLE BUT THERE IS STILL ROOM TO RUN IN THIS EARNINGS PERIOD. HAVE YOU LEARNED A LESSON FROM THOSE WHO HAVE REPORTED? DAVID: WE ARE ABOUT 75% OF THE WAY THROUGH AND IT APPEARS EARNINGS GROWTH IS NOT TO BE 8% TARGETED ON THE QUARTER BUT PROBABLY CLOSE TO 5%. YEAR-OVER-YEAR EARNINGS GROWTH LOOKS LIKE IT WILL BE ABOUT 12%. BASE EFFECT WILL MAKE THAT HARDER IN THE NEXT QUARTERS. THE STORY OF MICROSOFT IS A KIND OF MICROCOSM OF THE UNDERLYING REALITY, THAT THERE IS THIS FEEDBACK LOOP IN PLAY AND MICROSOFT GOES UP BECAUSE IT'S BUYING A LOT FROM NVIDIA AND NVIDIA GOES UP BECAUSE IT IS BUYING A LOT FROM IT AND OF COURSE THERE'S A LOT OF OTHER CUSTOMERS, BUT THIS IDEA AI DOESN'T EVER HAVE TO TELL YOU HOW IT'S GOING TO MAKE MONEY FOR REAL OTHER THAN AN INFRASTRUCTURE BACKBONE STORY IS PROBLEMATIC AND IF THOSE WILL BE GOING DOWN BEFORE THEY CONVERTED TO PROFITS THEN YOU HAVE AN UNWIND THAT HAS TO TAKE PLACE OF THE FEEDBACK LOOP. ED:
FOR THE TECHNOLOGY SECTOR WHAT HAPPENS IN THE SECOND HALF OF THIS YEAR? ROD: I WOULD BE ON -- DAVID: I WOULD BE UNCONSTRUCTIVE ON THE SPACE ON A VALUATION BASIS. WE ARE HARDLY THE TYPES OF TECHNOLOGY INVESTORS THAT YOU NORMALLY WOULD BE SPEAKING TO JUST A SENSE OF OUR BORING ASSISTANCE -- INSISTENCE ON CASH FLOW. WE OWN BROADCOM AND DON'T THINK HE GOT TO THE VALUATION OVERSTRETCH. WE HAVE OLD TECH NAMES LIKE IBM AND CISCO THAT HAVE ONGOING FREE CASH FLOW FROM UNDERLYING BUSINESSES BUT OBVIOUSLY NEW GROWTH OPPORTUNITIES. THAT'S THE WAY WE WOULD PREFER TO PLAY IT BECAUSE WE THINK PERFECTION WAS PRICED IN TO THE MORE CONTEMPORARY TECHNOLOGY NAMES. ED:
I DO NOT FOR A SECOND THINK YOU ARE BORING. DAVID BAHNSEN, CEO AT THE BAHNSEN GROUP. LET'S GO TO THE EARNING STORY. UBER REPORTING STORY --
EARNINGS THIS MORNING. BRINGING IN NANCY WHO COVERS THE GIG ECONOMY PLATFORMS. IT'S BASICALLY EVERYTHING THAT RUNS THROUGH THE UBER PLATFORM APART FROM THE TIPS, BUT WITHIN THAT THERE ARE LOADS OF STORIES. NATALIE: FROM RIDESHARE DELIVERY, USER FREQUENCY AS WELL AS DRIVER ACTIVITY ON THE PLATFORM IS THAT IT ALL-TIME HIGH. THIS RESULTED SHOWING HOW UBER'S STRATEGY OF PUSHING INTO NEW AREAS PLAYING OUT WELL FOR THEM. THEY LAUNCH AFFORDABLE OPTIONS SUCH AS SHADOWS -- AND LOW COST SHARE RIDES.
THAT IS CONTRIBUTED TO THE COUNTERCYCLICAL STORY THE CEO TALKED ABOUT ON THEIR CALL WHETHER THEY ARE CAUSING SOME DOWNTURN. ED: NATALIE ALL ACROSS UBER AND A LOT MORE TO COME IN THAT SPACE. THAT WILL GIVE US A BIGGER PICTURE OF THE STRENGTH IN THAT MARKET. COMING UP ON THIS PROGRAM WE ARE JOINED BY THE CTO OF PALANTIR DISCUSSING THE COMPANY'S EARNINGS RELEASED AFTER THE CLOSING BELL MONDAY. ONE OF THE BIG MOVERS TO THE UPSIDE. COMMERCIAL CUSTOMERS, MILITARY CUSTOMERS, GOVERNMENT CUSTOMERS. THIS IS BLOOMBERG TECHNOLOGY.
ED: LET'S KEEP IT GOING WITH EARNINGS COVERAGE. PALANTIR BOOSTING ITS REVENUE GUIDANCE FOR THE YEAR TO A RANGE OF 2.7 4 BILLION AHEAD OF ESTIMATES WITH AI DEMAND ALSO HELPING PALANTIR BOOST ITS PROFIT OUTLOOK. A GROWTH IN BUSINESS AND CUSTOMERS. ARTIFICIAL INTELLIGENCE PLATFORM AND OTHERS HAVE TRANSFORMED THE BUSINESS. THE CTO SHYAM SANKAR JOINS US. ON THE CALL THIS TRANSFORMATION
HE WAS TALKING ABOUT. AS CTO YOU ARE WORKING ON IT. JUST EXPLAIN THE BASIS OF THAT. WHAT'S CHANGED FROM A TECHNOLOGY PERSPECTIVE AND IN THE DOMAIN OF ARTIFICIAL INTELLIGENCE. SHYAM:
WHAT YOU SEE IS THIS MASSIVE BOTTLENECK BETWEEN PROTOTYPING AND PRODUCTION THAT HAPPENS TO BE WHERE ITS MOST DIFFERENTIATED. IT'S ON A DECADE OF INVESTMENTS LIKE THE ONTOLOGY, THE SECURITY AND BUSINESS PRIMITIVES WE BUILT THROUGH THE PLATFORMS LIKE FUNCTIONS, ACTIONS IN THIS PIPELINE WE HAD THE FOCUS ON ADDRESSING THAT. I THINK WHAT'S CHANGED IS YOU'VE BEEN TO THESE IS THE MARKET NOW UNDERSTANDS HOW SEVERE THAT BOTTLENECK IS. YOU LAST GUEST WAS TALKING ABOUT THAT. WHERE IT IS SO EASY TO BUILD A CHARISMATIC AI PROTOTYPE ABOUT THE AMOUNT OF EFFORT OF BUILDING A POWERPOINT SLIDE BUT IT IS ALSO THAT AMOUNT OF UTILITY AND UNLIKE TRADITIONAL DETERMINISTIC SOFTWARE THIS POWERFUL STOCHASTIC GENIE IT REQUIRES A LOT MORE WORK TO GET THE PRODUCTION.
THAT REQUIRES THE TOOLCHAIN WE ASSEMBLED. ED: I HAVE HAD A FEW CONVERSATIONS ABOUT HIS FRUSTRATION WITH THE POWERPOINT DECK VERSUS THE REALITY OF SHIPPING PRODUCT. WE WILL PUT THAT TO ONE SIDE FOR NOW. THERE WAS A HEAVY EMPHASIS ON WORKING WITH THE MILITARY IN THE WRITTEN MATERIALS AND ON THE CALL. COULD YOU GIVE THE BASICS OF WHAT YOUR WORK WITH THE MILITARY LOOKS LIKE PRESENT DAY? SHYAM: IN THE COMMERCIAL WORLD YOU CALL IT A VALUE CHAIN. FROM THE HAND OF A SUPPLIER TO THE CUSTOMER.
IN THE MILITARY IT'S A KILL CHAIN. ON THE ABSTRACT LEVEL IS THE SAME THING. WE'RE TRYING TO ENABLE WAR FIGHTERS TO HAVE INFORMATION DOMINANCE AND DECISION ADVANTAGE. IF YOU KNOW YOUR ENEMY AND YOURSELF YOU WILL WIN.
HOW CAN I SEE EVERYTHING THERE IS TO KNOW ABOUT THE THREAT. HOW CAN I UNDERSTAND EVERYTHING TO COMBAT AND DETER ANY AGGRESSION FROM THOSE THREATS. WHEN YOU LOOK AT THE GEOPOLITICAL LANDSCAPE IT COULD NOT BE MORE DANGEROUS. EVERYTHING IN EASTERN EUROPE, MASSIVE TENSIONS IN THE MIDDLE EAST AND THE ONGOING ISSUES WE HAD IN THE PACIFIC. ED:
BEYOND THE IMPORTANCE OF DATA, WHERE DOES PALANTIR SIT IN THE DEFENSE ECOSYSTEM OR SUPPLY CHAIN. ARE YOU CLOSELY ALIGNED WITH HARDWARE MAKERS, THE AEROSPACE COMMUNITY OR IS THE MODEL FOCUSED ON YOU GOING DIRECT TO DIFFERENT ARMS OF THE DEFENSE BASE WITH GOVERNMENT? SHYAM: ONE OF THE THINGS ARE EXCITED ABOUT IS THE FIRST BREAKFAST AS AN ANTIDOTE TO THE LAST SUPPER HEARD WE WENT FROM 51 PRIMES DOWN TO FIVE. WE FORGET AT THE DAWN OF WORLD WAR II DID NOT HAVE A DEFENSE INDUSTRIAL BASE WE HAD AN AMERICAN INDUSTRIAL BASE. GENERAL MILLS THE CEREAL COMPANY, INITIAL GUIDANCE SYSTEMS. WE HAVE THIS MOMENT RIGHT NOW IN DEFENSE DECK WHERE 100 BILLION DOLLARS OR MORE OF HAS BEEN DEPLOYED. A BOLUS OF FOUNDERS HAVE SHOWN
UP. A LOT OF CREATIVITY AND ENERGY AS A COMPANY THAT'S BEEN PATHFINDING NOT ONLY HAVE WE DEVELOPED OUR SOFTWARE THAT GIVES THESE WAR FIGHTERS A UNIQUE ADVANTAGE LIKE THE CONTRACT RECENTLY AWARDED FOR NEARLY HALF DUTCH HALF $1 BILLION. THE SOFTWARE INFRASTRUCTURE THAT REQUIRED TO DELIVER MODERN AMERICAN SOFTWARE TO THE BATTLEFIELD IN AIR GAP ENVIRONMENTS AT SPEED AND PACE WELL AHEAD OF THE THREATS. WE'VE BEEN WORKING WITH TRADITIONAL PRIMES, INTEGRATING OUR SOFTWARE AND REPRODUCTION. IF YOU THINK OF OUR BUSINESS IT'S COMMERCIAL ORIENTED. HOW DO WE BUILD FASTER, BETTER AND CHEAPER. IN ADDITION TO THE NEW ONES
THAT NEED TO ACHIEVE SCALE AND TIME, A VALUE OF MONEY IS EVERYTHING FOR THEM. ED: WHENEVER WE HAVE AN EXECUTIVE ON THE PROGRAM I SAY WHAT IS IT YOU WANT TO KNOW IN THIS CASE FROM PALANTIR. MOST OF THE QUESTIONS WERE ABOUT WARP SPEED. VERY BASIC ONES. WHY NOW WITH WARP SPEED AND THE
OBSTACLES TO ROLLING IT OUT, MAKING IT SORT OF MORE READILY AVAILABLE. SHYAM: I'M SO EXCITED ABOUT WARP SPEED IT'S WHAT I'M SPENDING MY TIME ON, WARP SPEED IS OUR MODERN AMERICAN OPERATING SYSTEM FOR MANUFACTURING. THE REASON WHY NOW FOR THE BETTER PART OF 20 YEARS WE HAVE HELPED TRADITIONAL MANUFACTURERS BUILD PLANES, TRAINS, AUTOMOBILES AND SHIPS.
MOST OF THOSE FOLKS ARE STUCK IN A LEGACY MODE HOW THEY'RE OPERATING. BUT WHAT'S UNIQUE ABOUT THE RE-INDUSTRIALIZATION HAPPENING IN AMERICA IS THESE FOUNDERS, THEY ARE ALUMNI OF PALANTIR, TESLA AND SPACEX AND UNDERSTAND THE ERP PLM, A PLC SOFTWARE DOESN'T REALLY WORK. MOST OF THE SUCCESSFUL COMPANIES HAVE HAD TO BUILD THEIR OWN SOFTWARE AND THAT IS AN UNAFFORDABLE JOURNEY. THERE IS A MASSIVE OPPORTUNITY TO TAKE THE POWER OF AIP AND HISTORICAL EXPERIENCES THROUGHOUT THE VALUE CHAIN OF PRODUCTION TO HELP OUR CUSTOMERS SPEND THEIR DUTCH SPEND BETTER WITH BITS. -- SPEND BETTER WITH BITS.
ED: SOME QUICK FIRE QUESTIONS ABOUT PALANTIR. SINCE AIP AND WARP SPEED, OVER THE YEAR WHAT IS THE KEY FOUNDATIONAL MODEL YOU BEEN BUILDING ON TOP OF. I KNOW YOU THINK IN-HOUSE ABOUT THE MODEL OR FOUNDATION LEVEL, THAT THAT'S A QUESTION THAT COMES UP QUITE A LOT. WHO ARE YOU BUILDING ON TOP OF AND WORKING WITH? SHYAM: WHAT WE'VE SEEN IN PRODUCTION IS YOU NEED A MENAGERIE OF MODELS AND IF YOU THINK ABOUT THE MOST EXPENSIVE MODEL OUT THERE IT'S 1000 TIMES MORE EXPENSIVE THAN THE CHEAPEST OPEN-SOURCE MODEL FOR 10% MORE IQ AS A ROUGH PROXY. THAT'S NOT A COMPELLING PRICE FORM. YOU ALREADY SEE THE FIRST
VERSIONS OF GPT 4 HAVE BEEN SUNSET. WHAT IS THE INFRASTRUCTURE NEEDED. I'M TURNING MY SOFTWARE INTO SOMETHING THAT IS NOW STOCHASTIC, IT IS NOT DETERMINISTIC. THE SCIENTIST WE HAVE TRAINED ARE USED WRITING DETERMINISTIC CODE. THIS HARKENS TO HOW WE THINK ABOUT THE TRANSITION FROM ANALOG SERVICE -- CIRCUITS TO DIGITAL CIRCUITS. THE INFRASTRUCTURE YOU NEED SO YOU CAN HAVE THE ABSTRACTION TO THINK ABOUT THESE AS DIGITAL.
ED: GO AHEAD, SORRY. SHYAM: WE ARE VERY FOCUSED ON HELPING OUR CUSTOMERS GET THE RIGHT MODELS FOR THE RIGHT USE CASES, AUTOMATICALLY GENERATE ITERATIONS ON PROMPTS THAT GOT THEM THERE AND PART OF OUR THEORY IS PROMPTS ARE FOR DEVELOPERS. CHAT IS A DEAD END. THEY GET THERE PRETTY QUICKLY TO REALIZE WE SHOULD BE THINKING OF THEM IS A NEW TYPE OF RUN TIME.
I MIGHT WRITE A PYTHON FUNCTION. ED: FOR THE COMMERCIAL HALF OF THE BUSINESS IS THERE A SPECIFIC HYPER SCALE CLOUD PLATFORM OR PARTNER TO SUPPORT ITS GROWTH? SHYAM: WE ARE WORKING WITH ALL OF THEM. DEEP AND VALUABLE RELATIONSHIPS THERE. WE ARE VERY HAPPY WITH THAT. ED: THIS LAST YEAR HAS BEEN ABOUT AIP AND GROWTH. WHAT'S THE NEXT 12 MONTHS LIKE HER PALANTIR? SHYAM: IT'S ABOUT DEEPENING THIS BOTTLENECK WITH PRODUCTION RATE IF YOU LOOK AT THE ARTICLE ON THE $600 BILLION HOLE IN REVENUE.
THIS IS THE BOTTLENECK OF THE MARKET, THE FOLKS YOU SAW IT FIRST WE'RE IN THE POLE POSITION HERE HAVE THE OPPORTUNITY TO TAKE THE MARKET. ED: SHYAM SANKAR, CTO OF PALANTIR. RIGHT TO HAVE YOU BACK ON BLOOMBERG TECHNOLOGY. WE LOOK AT GOOGLE'S LOSS IN A HISTORIC ANTITRUST LAWSUIT AFTER THE TECH GIANT PAID $26 BILLION TO BECOME THE DEFAULT SEARCH ENGINE ON SMARTPHONE WEB BROWSERS. THIS IS BLOOMBERG TECHNOLOGY. ED: IN OTHER TECH NEWS, GOOGLE LOST AFTER THE TECH GIANT PAID $26 BILLION TO BECOME THE DEFAULT ENGINE ON BROWSERS.
LET'S START WITH THE BASICS, THE DECISION AND HOW IT WILL IMPACT ALPHABET OR GOOGLE, ALPHABET THE PARENT OF GOOGLE. >> THE DECISION YESTERDAY IS JUST THE ONE ON WHETHER GOOGLE VIOLATED THE LAW. GOOGLE HAS -- THEY FOUND GOOGLE HAS AN ILLEGAL MONOPOLY OVER THE GENERAL SEARCH SERVICES MARKET AND SEARCH TECH STATS WHICH ARE THE TOP OF THE PAGE THAT TRY TO LURE YOU TO WEBSITES.
THIS IS WHAT THEY SAID ON THE LIABILITY, GETTING TO THE NEXT PHASE OF THE CASE WHICH IS WHAT TO DO ABOUT IT. THE JUSTICE DEPARTMENT HASN'T NECESSARILY SAID WHAT THEY WANT YET BUT THERE IS SORT OF SEVERAL OPTIONS PEOPLE THINK, ONE OF WHICH IS A POTENTIAL BREAKUP. THEY COULD ASK FOR THE COURT TO MAKE GOOGLE SELL OFF THE CHROME BROWSER OR THE ANDROID OPERATING SYSTEM, BOTH OF WHICH WERE KEY THINGS IN THE TRIAL OR THE JUDGE COULD GO WITH A SLIGHTLY LESSER PENALTY OR REMEDY SUCH AS MAKING GOOGLE SHARE SOME OF THE DATA IT COLLECTS, THAT SORT OF UNDERLIES IT SEARCH RESULTS WITH OTHER SEARCH ENGINES LIKE OR -- LIKE BING OR OTHER SEARCH STARTUPS. ED:
A LOT OF QUESTIONS I GOT ON SOCIAL MEDIA WAS DOES THE RULING HAVE TEETH. THEY WERE OPINION PIECES ABOUT THIS BEING A HOLLOW VICTORY FOR REGULATORS AND THE STOCK IS KIND OF FLAT. IT'S HARD TO GAUGE HOW SERIOUS THIS IS ABOUT ALPHABET. BUT IT IS IMPORTANT. LEAH: IT IS PROBABLY NOT GOING TO TAKE ANY IMPACT IMMEDIATELY. GOOGLE SAID IT WILL APPEAL. THOSE SORTS OF APPEALS GENERALLY TAKE A YEAR TO 18 MONTHS SO THIS WILL DELAY ANY ACTUAL CHANGES TO GOOGLE'S SEARCH ENGINE OR ITS BUSINESS.
WHAT IT MEANS IS LONG-TERM GOOGLE WILL CHANGE ITS PRACTICES , IT WON'T REMAIN THE DOMINANT SEARCH ENGINE FOR VERY LONG. IT MAY HAVE TO HIVE OFF CERTAIN PARTS OF ITS BUSINESS WHICH ARE PROVIDED A NICE CUSHION TO THE COMPANY. THE ONE THING YOU SEE THERE WAS A PRETTY SHARP STOCK SELLOFF OR APPLE BECAUSE $20 BILLION OF THAT YOU MENTIONED HAD BEEN GOING TO APPLE EVERY YEAR. IT SIMPLY HAD ITS CONTRACT WITH GOOGLE, IT GOT $20 BILLION FOR NOT DOING ANYTHING OTHER THAN BEING THE DEFAULT ON THE IPHONE. THIS RULING PUTS THAT IN DANGER BECAUSE THE JUDGE SAID YOU CAN HAVE THIS EXCLUSIVE AGREEMENT WHEN YOU ARE THIS DOMINANT. YOU HAVE TO LET OTHER PEOPLE COMPETE.
IT MIGHT END UP CHANGING SOME ASPECTS OF THE IPHONE. THERE ARE QUESTIONS ABOUT APPLE CREATING VERY SIMILAR AGREEMENTS WITH GOOGLE AND AI OVER AI CHATBOTS AND SUCH THAT COULD BE ON THE IPHONE. WILL HAVE TO MAKE SOME CHANGES TO THOSE AGREEMENTS BECAUSE OF THAT DECISION, THAT IS POSSIBLE. ED: GOOGLE HAS SAID IT PLANS TO APPEAL THE DECISION ANYWAY.
THANK YOU VERY MUCH. COMING UP ON THE SHOW WE WILL DISCUSS THE STATE OF THE CRYPTO MARKET WITH THE HEAD OF STRATEGY AT CRACKING. THERE'S ALSO A LOT OF MOVEMENT IN THE WORLD OF TECHNOLOGY AND JOBS. TAKE A LOOK VERY QUICKLY AT SHARES OF DELL. BLOOMBERG CITING A MEMO FROM EXECUTIVES THAT THERE WILL BE SOME LAYOFFS AND TRIMS IN SOME PARTS OF THE BUSINESS RELATIVE TO OTHERS, BUT ALL WITH AN IDEA TO REINFORCE THE AI SALES TEAM.
WE HAVE SEEN THIS BEFORE, THE REALLOCATION OF DIVERSION OF HEADCOUNT FROM ONE AREA TO THE MOST IMPORTANT ONE. EVEN SO THE STOCK DOWN 4.3%. THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. THE FINANCIAL MARKETS ARE HAVING A BIT OF A BREATHER IN THE SENSE THERE IS SUCH A BIG DECLINE MONDAY, WE WERE UP MORE THAN ONE PERCENTAGE POINT OFF SESSION HIGHS THIS TUESDAY.
WE'VE TALKED ABOUT UBER AND PALANTIR BUT WE REMIND OURSELVES AS A FRIDAY NIGHT THE NASDAQ HAD FALLEN FOR FOUR STRAIGHT WEEKS. A LOT OF THINKING ABOUT GROWTH, GEOPOLITICS AND HOW LONG THIS INVESTMENT CYCLE HAS TO RUN. THERE'S ALSO A FOCUS ON CRYPTO. BACK TO MONDAY WHICH SEEMS A LONG TIME AGO BUT IT WAS ONLY YESTERDAY, BITCOIN A LOT OF VOLATILITY. 8% DECLINE IN MONDAY SESSION.
BIGGEST DROP SINCE MARCH OF 2023. AT ONE POINT WAS DOWN BELOW 50,000 U.S. DOLLARS. BEHAVE LIKE A RISK ASSETS BUT WHAT'S GOING ON. LET'S TALK MORE WITH THE HEAD OF STRATEGY AT CRACKING.
THAT WAS THE SET UP, MONDAY WAS A VERY INTERESTING EXPERIENCE FOR FINANCIAL MARKETS PARTICIPANTS, CRYPTO FANS ALIKE. WHAT YOU THINK WAS BEHIND THE SPECIFIC ANXIETY IN BITCOIN? >> LAST TIME WE SPOKE ONE OF THE FOUR MAJOR CATALYSTS I HAD DISCUSSED AS FAR AS NEAR-TERM PERFORMANCE FOR CRYPTO WOULD BE THE BROADER OVERALL MACRO CONDITION IN FINANCIAL MARKETS SO OF COURSE SEEING THE DELEVERAGING OF THAT IN LARGE PART DUE TO THE CARRY TRADE FALLING APART FOR A LOT OF PEOPLE, THAT DOES HAVE AN IMPACT ON CRYPTO IN PARTICULAR BECAUSE SOME OF THE BIGGEST TRADING FIRMS INVOLVED IN CRYPTO ALSO TRADE IN TRADITIONAL MARKETS. TO THE EXTENT YOU HAVE BIG TRIBULATION IN TRADITIONAL FINANCIAL MARKETS ALL GOOD COLLATERAL GET SOLD OFF WHETHER IT'S GOLD, CRYPTO, ETC.. ED: I LOVE YOU BRING UP THE JAPANESE CARRY TRADE. MORE THAN ANYTHING IT WOULD BE
SHARED ON SOCIAL MEDIA ABOUT WHAT WAS HAPPENING WITH THAT. SOME OF THE OTHER RETORTS I GOT ON SOCIAL MEDIA TALKING ABOUT BITCOIN WAS THE IDEA YOU SAID THIS WOULD BEHAVE LIKE A HAVEN ASSET. IT VERY MUCH BEHAVES LIKE A RISK ASSET OR IN LINE WITH RISK ASSETS. EXPLAIN THAT FROM YOUR PERSPECTIVE? THOMAS: THE PERFORMANCE OF BITCOIN HERE TODAY IS STILL POSITIVE. STILL POSITIVE PERFORMANCE YEAR ON YEAR. THAT'S 2.5 TIMES WE ARE SEEING
U.S. EQUITY. IN GENERAL I THINK IF YOU ZOOM OUT IT'S A GOOD-LOOKING TREND. WHEN I THINK ABOUT THE TWO KEY NEAR-TERM IMPORTANT ISSUES YOU REALLY WANT TO THINK ABOUT AS OF TODAY IS A CRYPTO INVESTOR IT'S GOING TO BE TAKING A VIEW ON FLOWS FROM TRADITIONAL MARKETS PARTICULAR IN THE FORM OF THE ETF'S BUT IT'S ALSO TRYING TO MAINTAIN INVESTOR DISCIPLINE AND THE SATELLITE TO LOOK AT YOU CAN MEASURE THIS OVER A VARIETY OF TIME HORIZONS. IF YOU MISSED THE TOP 10 PERFORMING DAYS IN BITCOIN, YOUR RETURNS ARE 30% TO 60% WORSE OFF THAN MAINTAINING EXPOSURE. EVEN THOUGH IT'S A VOLATILE ASSET IT'S BEEN ASYMMETRICALLY POISED TO THE UPSIDE SO TO THE EXTENT YOU CAN MAINTAIN POSITION THAT IS THE HEALTHIEST WAY TO APPROACH THIS. SOY UNDERSTAND THE ONE DAY EIGHT-DAY SELLOFFS IN CRYPTO. ON THE GRAND SCHEME OF THINGS,
HISTORICAL PRICE ACTION ISN'T THAT DIFFERENT FROM WHAT WE SEEN IN THE PAST. >> WE ARE TRADING JUST BELOW $56,000 PER TOKEN. KIND OF LIKE WE WERE LATE FEBRUARY AS THE ETF APPROVAL PROCESS WAS TAKING PLACE. WHAT HAPPENS NEXT? WE'VE TALKED QUITE A LOT ABOUT THE NEAR AND THE LONGER-TERM VIEW -- IN THE NEAR TERM. THE CATALYST FOR BITCOIN? SHYAM:
WHEN I THINK -- SHYAM: WHEN I THINK OF THE LONG-TERM -- THOMAS: WHEN I THINK OF THE LONG-TERM TRAJECTORY WE SEE IT AS THE FUTURE OF THE FINANCIAL SYSTEM. RIGHT NOW, A CRYPTO ADOPTION IS LESS THAN 10% OF THE POPULATION PREYED EVERYONE NEEDS TO BE INVOLVED IN FINANCE, WE THINK THAT THAT PARTICIPATION GROWTH -- GROWS SUBSTANTIALLY. OTHER CRYPTOCURRENCIES BEING AN ASSET CLASS WITH FINITE SUPPLY DOES CREATE CONDITIONS WHERE YOU HAVE A LOT OF DEMAND GROWTH BUT NOT ALLOW SUPPLY GROWTH SO THAT'S WHAT A LOT OF PEOPLE LOOK TO AS FAR AS VERY LONG-TERM TREND OF THE VALUE OF THESE NETWORKS. WHEN I THINK ABOUT THE RECENT ACTIVITY, A LOT OF THIS HAS BEEN AROUND THE ETF PRODUCTS WITH INFLOWS OF 17 BILLION. THAT'S A HUGE NET INFLOW IN THIS KIND OF PRODUCT IT'S A REALLY POSITIVE KIND OF VIEW ON THE ASSET CLASSES GENERAL. ED:
THAT LONG-TERM OUTLOOK IN THE TIME HORIZON OF FIVE TO 10 YEARS, HOW DEPENDENT IS IT OR THE MODEL ON CONGRESSIONAL ACTION? HAVING A LEADER IN THE WHITE HOUSE THAT HAS A SPECIFIC PROACTIVE STANCE TOWARDS THE INDUSTRY? THOMAS: THE FIRST THING I WILL SAY IS CRYPTO IS GLOBAL. OF COURSE THE U.S. IS AN IMPORTANT COUNTRY WHEN IT COMES TO GLOBAL FINANCIAL MARKETS, IT IS STILL A SMALL PART OF THE OVERALL POPULATION. SO THERE IS A LOT OF GROWTH THAT CAN HAPPEN ABROAD. WITH RESPECT TO THE U.S. SPECIFICALLY, I KNEW CRYPTO WAS A BIPARTISAN ISSUE AND OUR INTEREST IN THE POLITICAL ENVIRONMENT ARE TWO FOLD. WE THINK THE FOCUS SHOULD BE ON
LEGISLATIVE ACTION TO A SHREVE -- TO ACHIEVE REGULATORY CLARITY IN THE U.S.. IT'S ALSO WHAT WE ARE SEEING IN OTHER REGIONS LIKE EUROPE, U.K., AUSTRALIA, ETC.. WHEN YOU ZOOM AHEAD, LET'S SAY THAT FIVE TO 10 YEAR TIME HORIZON, OF ELECTION YEAR IS COOL BECAUSE IT IS SORT OF A PIVOTAL MOMENT FOR CRYPTO AS A TOPIC BECAUSE THE ELECTORATE IS CHANGING DEMOGRAPHICALLY. SO YOU HAVE ROUGHLY THE SAME
AMOUNT OF VOTER REPRESENTATION PROJECTED BY THE CENTER FOR AMERICAN PROGRESS WITHIN THE SILENT GENERATION AND BABY BOOMERS COMPARED WITH GEN Z AND MILLENNIALS. BUT FOUR YEARS FROM NOW, THE 2028 ELECTION CYCLE, THAT CHANGES DRAMATICALLY. YOU WILL HAVE ABOUT 10 PERCENTAGE POINTS HIGHER OF VOTER REPRESENTATION AMONGST GEN Z AND MILLENNIALS. ANY DEMOGRAPHIC STUDY SHOWED GEN Z AND MILLENNIALS TWO TO THREE TIMES MORE LIKELY TO HAVE FAVORABLE VIEWS ON CRYPTO INTO HOLD IT VERSUS OTHER GENERATIONS. THAT TO ME IS HOW YOU SEE A BIG SHIFT IN THE POLITICAL ENVIRONMENT IN THE LONG RUN.
PEOPLE ARE RECOGNIZING IT AS AN IMPORTANT ISSUE. ED: THOMAS WITH THE GLOBAL DATA-DRIVEN VIEW, WE APPRECIATE IT. IT'S TIME FOR TALKING TECH. NVIDIA HITS AN ENGINEERING SNAG. ACCORDING TO SOURCES, THE HIGHLY ANTICIPATED BLACKWELL AI CHIPS WILL BE DELAYED DUE TO DESIGN FLAWS. IN A STATEMENT, IT SAYS THEY DO NOT COMMENT ON RUMORS AND THEY ARE ON TRACK IN THE SECOND HALF OF THE YEAR. ELON MUSK'S X SET TO CLOSE ITS SAN FRANCISCO OFFICES PRETTY WILL LEAVE THE CITY WHERE IT WAS FOUNDED IN 2006 ACCORDING TO A SOURCE WHO SAYS EMPLOYEES WILL BE RELOCATED TO EXISTING OFFICES IN SAN JOSE AND AN ENGINEERING OFFICE IN PALO ALTO. SK HYNIX SET TO RECEIVE AN
ADDITIONAL -- AN INITIAL 450 MILLION DOLLARS IN GRANTS TO BUILD OUT IN ADVANCE CHIPS PACKAGING FACILITY IN INDIANA. THEY EXPECT TO BENEFIT FROM A 25% TAX CREDIT. COMING UP, SYMPHONIC CAPITAL PARTNER AND KAMALA HARRIS SUPPORTER SHRUTI SHAH.
TERMINAL AS WELL AS APPLE, SPOTIFY AND IHEART. THIS IS BLOOMBERG. ED: IT IS OFFICIAL, VICE PRESIDENT KAMALA HARRIS TAPPED MINNESOTA GOVERNOR TIM WALZ AS HER RUNNING MATE IN AN EFFORT TO BUILD AN ELECTORAL COALITION OF COASTAL PROGRESSIVES AND MIDWEST MODERATES TO BLOCK DONALD TRUMP FROM RETURNING TO THE WHITE HOUSE. LET'S GET OUT TO KAILEY LEINZ. I DID NOT KNOW AS MUCH ABOUT TIM WALZ BEFORE THIS MORNING OR INDEED THE WORK DONE IN THE STATE OF MINNESOTA BUT THAT IS THE LOGIC WE OUTLINED FOR THE APPOINTMENT. KAILEY: IT IS WORTH NOTING HE PROBABLY DOESN'T HAVE THE SAME RECOGNITION AS OTHERS WE UNDERSTOOD TO BE ON THE SHORTLIST. HE IS A VERY POPULAR
GOVERNOR IN HIS STATE OF MINNESOTA SO HE IS SOMEONE WITH EXECUTIVE EXPERIENCE, SERVING 12 YEARS IN THE HOUSE OF REPRESENTATIVES AND BEFORE THAT HE WAS A HIGH SCHOOL TEACHER AND COACH. HE SERVED IN THE U.S. MILITARY AND IS FROM RURAL NEBRASKA. MINNESOTA HAS BEEN SAFELY BLUE SINCE 1972 WHEN IT WENT FOR RICHARD NIXON, HE DOES HAVE PROXIMITY AND PERHAPS ACCESSIBILITY TO THOSE RUSTBELT VOTERS IN MICHIGAN, WISCONSIN AND PENNSYLVANIA THAT MAKE UP THAT CRITICAL BLUE WALL.
THIS IS SOMEONE WHO IS BEEN FAVORED BY LABOR. THE AFL-CIO JUST ENDORSED HIM TODAY IN THE AFTERMATH OF HARRIS'S ANNOUNCEMENT. HE IS WELL KNOWN AND LIKED AMONG GEN Z AND YOUNG PEOPLE.
HE'S GONE VIRAL ON SOCIAL MEDIA COINING J.D. VANCE AND DONALD TRUMP AS BEING WEIRD. OF COURSE HE ALSO HAS ENJOYED DEMOCRATIC CONTROL OF THE STATE LEGISLATURE IN MINNESOTA IN HIS SECOND TERM AS GOVERNOR WHICH HAS ALLOWED HIM TO ENACT A MORE PROGRESSIVE AGENDA CODIFYING ABORTION RIGHTS, PAID FAMILY LEAVE, LUNCHES FOR YOUNG CHILDREN IN SCHOOLS. THAT KIND OF THING THAT HAS WON HIM A LOT OF PRAISE WITH THE LEFT. THAT'S THE REASON WHY WE ARE ALREADY SEEING REPUBLICANS OUT CRITICIZING HIM TODAY. CASTING HIM AS DANGEROUSLY
LIBERAL AND A RADICAL LEFTIST. ED: I WOULD NOTE SOME OF THE REACTION ON SOCIAL MEDIA WAS EXACTLY THE REACTION TO THE WEIRD MEMES THAT CIRCULATED AFTER HE GAVE THAT INTERVIEW PARTICULAR HE AMONG VENTURE CAPITAL. THIS PLAYED OUT ON SOCIAL MEDIA IN PART, WE ARE LIKELY TO HEAR FROM VICE PRESIDENT HARRIS AND I GUESS SOME MORE ABOUT HER RATIONALE. NOW THAT THE TICKET IS ESTABLISHED, WHAT HAPPENS NEXT? KAILEY: HARRIS CONFIRMED THIS ON HER CAMPAIGN X ACCOUNT. WE BELIEVE THERE WILL BE A VIDEO ON SOCIAL MEDIA AT SOME POINT AND THEN SHE WILL APPEAR BELOW -- ALONGSIDE GOVERNOR WALZ, KICKING OFF A MULTI-STATE -- MULTI-SWING STATE TOUR. RALLYING WITH UNITED AUTO WORKERS IN PART SO THEY WILL BE VISITING THESE BATTLEGROUND STATES.
WE WOULD -- WE WERE TOLD NOT TO READ INTO THE FACT THAT THEIR EVENT IS IN PHILADELPHIA. WE OF COURSE HAVE HEARD FROM GOVERNOR SHAPIRO SAYING HE INTENDS TO WORK TO GET HARRIS SUPPORT IN PENNSYLVANIA AND DEFEAT DONALD TRUMP IT ALSO PLAYS INTO THIS NOTION THE IDEA HE WAS NOT SELECTED YOU ARE SEEING SOME REPUBLICANS INCLUDING THE VICE PRESIDENTIAL NOMINEE CASTING THE DECISION NOT TO PICK SCHAPIRO AS ANTI-SEMITIC. SO THE IDEA THAT LABOR DID NOT LIKE HIM AS MUCH MAY HAVE PLAYED A ROLE IN HARRIS'S DECISION NOT TO CHOOSE SCHAPIRO. A NATURALLY WILL SEE HIM ON STAGE TONIGHT, THAT IS THE FIRST TIME YOU WILL SEE THIS TICKET TOGETHER IN PERSON NOW THE ANNOUNCEMENT HAS BEEN MADE WITH LESS THAN TWO WEEKS TO GO UNTIL THE DEMOCRATIC NATIONAL CONVENTION IN CHICAGO. ED: I WANT TO BRING IN SHRUTI SHAH, A PARTNER AT SYMPHONIC CAPITAL. AND ALSO A COSIGNING OF A LIST OF VENTURE CAPITAL SO PUBLICLY BACK TERRACE. SHRUTI SHAH JOINS US IN NORTH
CAROLINA. LET'S START WITH THE TICKET. YOUR REACTION TO VICE PRESIDENT HARRIS SELECTING GOVERNOR WALZ AS HER RUNNING MATE? SHRUTI: THANKS FOR HAVING ME. I AM EXCITED THAT WE FINALLY
HAVE A VICE PRESIDENTIAL CHOICE ON THE TICKET. I THINK GOVERNOR WALZ IS AN EXCELLENT CHOICE FOR VICE PRESIDENT HARRIS AND I AM EXCITED TO SEE WHAT THE TWO OF THEM WILL BE ABLE TO DO TOGETHER. AS FAR AS IT RELATES TO TECH WE ARE STILL LEARNING MORE ABOUT GOVERNOR WALZ'S POLICIES WITH REGARD TO TECH. I THINK HE HAS DONE A LOT IN THE STATE OF MINNESOTA, MINNESOTA HAS BEEN DECLARED A TECH HUB BY THE BIDEN HARRIS ADMINISTRATION. HE'S DONE A LOT TO EXPAND RURAL BROADBAND ACCESS. ED: THE WEEK THAT FOLLOWED THE ASSASSINATION ATTEMPT ON FORMER PRESIDENT TRUMP AND THEN THE SELECTION OF J.D. VANCE AS HIS RUNNING MATE WE
HAD MANY VENTURE CAPITALISTS ON THE PROGRAM AND THOSE FROM LET'S CALL IT SILICON VALLEY MORE BROADLY WHO CAME OUT IN SUPPORT, SAYING WE SEE J.D. VANCE AS BEING A GOOD VOICE FOR ENTREPRENEURS AND SOMEBODY WITH EXPERIENCE IN OUR INDUSTRY. ARE YOU ABLE TO MAKE THE SAME ARGUMENTS FOR THE HARRIS WALLS -- HARRIS WALZ TICKET? HOW WILL THEY APPROACH YOUR WORLD DIRECTLY? SHRUTI: IT'S A GREAT QUESTION. I DON'T THINK MANY OF THE
VENTURE CAPITALISTS WHO CAME OUT IN SUPPORT OF TRUMP ARE REPRESENTATIVE OF THE ENTIRE INDUSTRY. AS WE KNOW, KAMALA HARRIS GREW UP IN OAKLAND AND HAS BEEN A LONGTIME SUPPORTER OF THE TECH INDUSTRY AND SHARES A LOT OF VALUES BUT MANY OF US IN THE TECH INDUSTRY HAVE PARTICULARLY WITH REGARD TO IMMIGRATION AND ENSURING WE ARE CONTINUING TO DRIVE INNOVATION IN THIS COUNTRY WITH POLICIES THAT ARE FAVORABLE TO TECH. SO I REALLY BELIEVE STRONGLY THAT WE SHOULD BE THINKING MORE BROADLY ABOUT THE WAYS IN WHICH THE TECH INDUSTRY HAS MORE DIVERSE VIEWPOINTS THAN THE ONES I THINK SOME VERY VOCAL MEMBERS OF THE INDUSTRY ESPOUSE. ROD: WE ARE -- ED: WE ARE SHOWING SOME OF THE LEADING NAMES I SUPPOSE OR SIGNATORIES OF THE VC'S FOR KAMALA.
WHAT'S THE BIG THING THAT UNITES YOU OR THE BIGGEST FACTOR THAT MAKES YOU CONCERNED ABOUT A TRUMP PRESIDENCY? SHRUTI: ONE OF THE BIGGEST THINGS THAT WORRIES ME ABOUT A TRUMP PRESIDENCY IS HIS PAST HISTORY WITH IMMIGRATION POLICIES. IF YOU LOOK AT THE NUMBER OF UNICORNS IN THE COUNTRY THAT HAVE BEEN STARTED BY IMMIGRANTS I BELIEVE IT IS ROUGHLY HALF OF THE UNICORNS IN THE UNITED STATES HAVE BEEN STARTED BY IMMIGRANT FOUNDERS. 80% OF THEM HAVE IMMIGRANTS IN LEADERSHIP ROLES. THE H1B VISA POLICY IS CRITICAL FOR THE TECH INDUSTRY AND TRUMP DOES NOT HAVE A POSITIVE TRACK RECORD THERE. HAVING A PRESIDENT WHO UNDERSTANDS THE IMPORTANCE OF IMMIGRATION IN THIS COUNTRY IS CRITICAL. ED:
SHRUTI SHAH, A PARTNER AT SYMPHONIC CAPITAL, THANK YOU FOR JOINING US ON BLOOMBERG TECHNOLOGY HERE. COMING UP ON THE SHOW, WE WILL TAKE A LOOK AT OPENAI AS THE COMPANY'S COFOUNDER AND JOHN SCHULMAN STEPPED BACK FROM THEIR ROLES MARKING A SHIFT IN MANAGEMENT. THIS IS BLOOMBERG TECHNOLOGY.
ED: OPENAI IS UNDERGOING A SHIFT. ANOTHER ONE. AS BOTH COFOUNDER STEP BACK FROM LEAVING THE COMPANY. GREG BROCKMAN, PRESIDENT OF OPENAI, IS GOING ON SABBATICAL UNTIL THE END OF THE YEAR WHILE JOHN SHOWMAN IS -- JOHN SCHULMAN IS LEAVING THE COMPANY.
GREG BROCKMAN IS IMPORTANT, HE IS GOING ON A LEAVE OF ABSENCE PAID TO FIND WHAT WE KNOW ABOUT THAT? RACHEL: WE KNOW HE INFORMED THE COMPANY HE WILL BE TAKING OFF UNTIL THE END OF THE YEAR. HE'S BEEN AT THE COMPANY FROM THE VERY BEGINNING. I'VE BEEN TOLD BY PEOPLE TO THE VERY EARLIEST DAYS OF OPENAI WERE HAPPENING AT HIS APARTMENT SO HE'S BEEN AN INTEGRAL PIECE OF THE COMPANY. ONE OF THE TOP PEOPLE THERE, SOMEONE THAT THE CEO OFTEN LOOKS TO. SO IT IS GOING TO BE
INTERESTING TO SEE WHAT HAPPENS WHILE HE IS OUT. ED: SHOWING A POST HE DID ON X CONFIRMING THE DETAILS OF IT. IT LOOKS LIKE HE NEEDS A BREAK. SCHULMAN IS SOMEONE I'M LESS FAMILIAR WITH PAID WHAT IS HE DOING AT OPENAI AND HE'S JUMPING OVER TO ANTHROPIC OF ALL PLACES. RACHEL:
WE HAVE SEEN A COUPLE OF PEOPLE MAKE THAT KIND OF MOVE RECENTLY FROM OPENAI. JOHN SCHULMAN, SOMEONE WHO IS BEEN THERE FROM THE BEGINNING. WITH HIM GONE AND WITH GREG ON LEAVE, THERE IS TO MY COUNT TWO PEOPLE FROM THE ORIGINAL 2015 BLOG POST SAYING HERE ARE ALL OF OUR FOUNDING MEMBERS. WE HAVE SAM ALTMAN AND WOJ ZAREMBA. ED: I THINK WE GOT SOME
CLARIFICATION THAT IT IS A LEAVE OF ABSENCE OR SABBATICAL. THE POINT BEING, IN AGGREGATE, PEOPLE TRACK OPENAI. THERE'S BEEN A LOT OF CHANGE. IT SEEMS A LONG TIME AGO SAM ALTMAN WAS BRIEFLY OUSTED. SUMMARIZE IT FOR THE AUDIENCE. WHERE DO THEY STAND NOW VERSUS THAT FATEFUL WEEKEND OF NOVEMBER 23? RACHEL: IT SEEMS SO LONG AGO BUT ALSO NOT.
A LOT OF LEADERSHIP HAS CHANGED AND LEFT AND A LOT OF THINGS HAVE BEEN REORGANIZED. SAM OBVIOUSLY IS BACK FROM THAT TIME IN NOVEMBER. WHO WOULD WORK ON SUPER LINE AT THE COMPANY IS GONE. AND WE ALSO HAVE A BUNCH OF OTHER PEOPLE IN LEADERSHIP PRINT -- POSITIONS SUCH AS JOHN SCHULMAN WHO HAVE LAUGHED AND GREG BROCKMAN IS STEPPING BACK. TO BE FAIR HE IS -- HE HAS BEEN THERE A LONG TIME. ED: FOR A LOT OF PEOPLE THAT'S NOT
SO IMPORTANT PARTICULARLY IN THE WORLD OF ENGINEERING. WHAT IS THE LATEST THING ON THE PRODUCT SIDE? RACHEL: SO THEY HAVE ALL THE MODELS THAT ARE ON CHATGPT INCLUDING GPT 4.0 RELEASED IN THE PAST FOUR MONTHS. THE MOST RECENT THING IS VOICE MODE WHICH IS IN ALPHA WHICH MEANS IT'S BEEN RELEASED TO A LIMITED NUMBER OF PEOPLE. THE COMPANY HAS NOT SAID HOW MANY PEOPLE.
IT'S NOT THAT MANY FROM WHAT I CAN TELL. THEY ARE SLOWLY GOING TO BE RELEASING IT TO MORE PEOPLE IN THE COMING WEEKS AND MONTHS THROUGH THE FALL. ED: I ASKED THEM IF I COULD GET MY HANDS ON IT SO TO SPEAK. LET'S SEE WHAT HAPPENS. RACHEL, THANK YOU.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. YOUR TWO DAYS INTO A WEEK THAT FELT LIKE AN ENTIRE ASH WE ARE TWO DAYS INTO A WEEK THAT HAS FELT LIKE AN ENTIRE WEEK. FROM SAN FRANCISCO, JUST ME THIS WEEK. THIS IS BLOOMBERG TECHNOLOGY. ♪
2024-08-08 09:13
