'Bloomberg Technology' Full Show (04/06/2023)
AND GOOGLE ARE LEARNING HOW DIFFICULT IT IS. CAROLINE: TABLE CONTINUE HIS GROWTH IN FUNDRAISING. FIRST, WAS TECH MONEY IN THE PUBLIC DOMAIN IT WAS UNDERWATER EARLIER. WE WILL SEE A MOOD SHIFT AS THE LAST THE TRADING DAY. WE TAKE THE DAY OFF AND SEE THE NASDAQ PUSH HIGHER AS PEOPLE START TO GET THE GRIPS OF WHERE THE JOBS DATA IS GOING TO BE.
STOCK IS CURRENTLY UP ABOUT 0.10 PERCENT. 10-YEAR YIELD STILL LOWER. SEVEN STRAIGHT DAY WE ARE SEEING COSTS FALLING FROM THE 10 YEAR DEBT.
LET'S LOOK AT WHAT WAS HAPPENING IN COULD THE MARKET AREA WE ARE STILL HOLDING THEIR THE IMPORTANT 28,000 LEVEL. WE DO NOT SEEM TO BE ABLE TO BREAK THROUGH IT AS THE DOLLAR WAVERS ON THE DAY. DIG IN ON THE MICRO MOVES. ED: TWO MOVERS THAT CAUGHT MY EYE, ALPHABET, PARENT COMPANY OF GOOGLE. UP TO .5%. WALL STREET REPORTING GOOGLE WILL INTEGRATE CONVERSATIONAL FUNCTIONALITY INTO SEARCH. I THINK WE THOUGHT THAT WAS COMING. THE MARKET IS MOVING ON THAT.
ALIBABA OF 3.5 PERCENT. CHINA REPORTING ALIBABA IS WORKING ON A CHILD GP -- A CHATGPT STYLE AI. COMING FROM PITTSBURGH, AN EVENT CAPITAL ASSOCIATION THE IN THE FIRST QUARTER OF THIS YEAR, $37 BILLION WORTH OF VENTURE BACKED DEALS. THE LOWEST LEVEL GOING BACK 13
QUARTERS. THIS IS FASCINATING. BACKWARDS LOOKING DATA. YOU COMPARE WHERE WE ARE IN THE PRIVATE MARKETS WITH HOW THE NASDAQ 100 HAS BEGUN THIS YEAR, PUBLIC MARKET, AND WE THINK ABOUT PERFORMANCE OF SOME THINGS LIKE TIGER WHO IS SO GROWTH FOCUSED IN THE TECH SECTOR. CAROLINE: WE ARE IN A BULL MARKET FOR THE NASDAQ 100, IT WILL HELP THE SAME NUMBER OF COMPANIES COMMITTED TO THE TEXT EIGHTH. JAMES COLEMAN, TIGER GLOBAL STAGING A COMEBACK. IT HAS HELPED THE FIRM RECRUIT FROM LAST YEAR'S PRETTY MEGA LOSSES. SET THE SCENE BECAUSE THEY
STARTED OFF 2023 WITH HALF THE AMOUNT OF MONEY THEY DID IN 2021 AREA COLLECTS IT HAS BEEN A DIFFICULT YEAR FOR THEM LAST. ASSETS FELL A TON AND THEY LOST EXCEED PERCENT. THE FOCUS RIGHT NOW FOR THEM IS HOW DO THEY MAKE BACK INVESTOR LOSSES? THE GAINS IN THE FIRST QUARTER ARE UP ABOUT 7%. NOT BAD. THEY HAVE A WAYS TO GO BUT
INVESTORS ARE HAPPY WITH ANY RECOVERY AND ANY GAIN. WE WILL HAVE TO MAKE MORE THAN 100% GAIN IN ORDER TO MAKE INVESTORS HOLD AGAIN. ED: WHAT IS THE TRACK RECORD? TIGER HAS BEEN IN THE GAME A LONG TIME. THEY HAVE HAD BAD YEARS BEFORE. WILL THEY COME BACK? >> IN THE PAST, THEIR WORST YEAR'S WHAT IS AROUND 2008. THEN IN 2016, THEY WERE DOWN AGAIN AS IT TOOK THEM A YEAR TO MAKE INVESTORS WHOLE. IT IS GOOD IF YOU WOULD AT
BEING ABLE TO REBOUND AND RECOUP THOSE LOSSES. THE QUESTION NOW IS 56% DOWN FROM LAST YEAR'S WORTH IN THE TWO PREVIOUS YEARS SO HOW LONG WILL IT TAKE FOR THEM TO DO THAT AGAIN? CAROL: HOW LONG DOES IT TAKE? HE DOES NOT SPEAK PUBLICLY AND DOES VERY LITTLE MEDIA BUT HE WAS HOSTING AN EVENT AND SEEMS HE IS BULLISH ON BUY TECH. >> HE WAS SPEAKING AT A LUNCHEON FOR THE BOYS CLUB IN NEW YORK. HE WAS ASKED ABOUT WHERE HE SEES OPPORTUNITY RIGHT NOW IT HE SAYS TECH HAS BEEN IN SOMETHING OF A RECESSION LATELY BUT IT LOOKS INTERESTING AGAIN.
THAT COMPANIES ARE USING AND INCORPORATING MORE TECHNOLOGY INTO THEIR BUSINESSES LIKE AMAZON USING CHATGPT. HE THINKS HE IS BULLISH ON THINGS AND WOULD SUGGEST BUYING THANKS. NOT SURPRISING. HE IS BIG IN MY TUB. INTERESTING TO SEE HOW HE SEES
THE VOTE AHEAD FOR THE SPACE HE FOCUSES ON. ED: BLOOMBERG'S HEMA PARMAR, THANK YOU FOR THAT REPORT. WE SHOULD POINT OUT THAT TIGER GLOBAL DECLINED TO COMMENT ON THE STORY. . INVESTING MARKETS WITH CAROL FENSKE, HEAD OF GLOBAL PRIVATE EQUITY INVESTMENT. WE BROUGHT YOU THE DATA FROM WHAT THE D.C.
LANDSCAPE LOOKS LIKE IN THE FIRST THREE MONTHS OF THIS YEAR. YOU LOOK AT WHAT IS HAPPENING WITH THE NASDAQ AND PRIVATE MARKET. WHERE IS YOUR FOCUS? WHAT IS WERE READ ON THE MACRO PICTURE? >> WE SEE THE MACRO PICTURE AS BEING SOMETHING EXCITING AND OPPORTUNISTIC FOR FIDELITY. I WILL ADDRESS SOME OF WHAT IT SOUNDS LIKE CHASE COLEMAN WAS SAYING WHICH IS NOW IS THE TIME FOR INVESTORS TO BE OPPORTUNISTIC AND FINDING GREAT -- AND FIND GREAT INVESTMENT OPPORTUNITIES. THERE ARE ABOUT 400 UNICORNS GLOBALLY WORTH ABOUT $520.
THERE ARE A LOT OF GREAT BUSINESSES OUT THERE FOR INVESTORS TO COME AND FETCH. WE ARE TRYING TO SEE A ROW RATIONALIZATION IN VALUATIONS. SOME MAY ARGUE THERE IS STILL ROOM TO GO THERE BUT WHEN YOU LOOK AT THE PEAK OF THE MARKETS IN 2021, PRIVATE VALUATIONS ARE 3.5 TIMES MORE EXPENSIVE THAN THE NASDAQ ON AVERAGE. YOU SAW SOME COMPANIES RAISE THE AAR OR EVEN HIGHER THAN THAT AND VALUATIONS HAVE RATIONALIZED. GREAT BUSINESSES AND VALUATIONS MAKING A LOT MORE SENSE AND WE SEE A LOT OF OPPORTUNITY. ED:
I THINK YOU AND I TRY TO GET A MORE GLOBAL PERSPECTIVE AS WELL. NOT JUST WHICH SECTORS ARE MORE INTERESTING ALSO GEOGRAPHICALLY RATED DEBATES ABOUT CHINA, THE MIDDLE EAST. CAROLINE: I THINK THAT IS RIGHT. PERHAPS WHEN GARNERING A LITTLE EMOTION IS TWITTER. I AM INTERESTED OF GLOBAL ALLOCATION OF MONEY. WHERE ARE THE EVALUATIONS THE BEST? >> IT IS A GREAT QUESTION. THE REALITY IS THERE ARE GREAT
OPPORTUNITIES GLOBALLY AS IT DOES NOT ALWAYS COME DOWN TO VALUATION. A LOT OF WHAT WE ARE FOCUSED ON IS WHAT IS THE TOTAL ADDRESSABLE MARKETS FOR BUSINESS? WHAT TYPE OF PROBLEM IS THAT BUSINESS SOLVING? DO THEY HAVE A REAL, DURABLE COMPETITIVE MOAT THAT IS DURABLE OVER TIME? WE WANT TO MAKE SURE THE EVALUATION IS RIGHT AND APPROPRIATE FOR THAT BUSINESS. WHEN WE LOOKED GEOGRAPHICALLY, WE SEE REALLY LARGE, ADDRESSABLE MARKET IN REGIONS -- MARKETS IN REGIONS LIKE INDIA WHERE WE MAY INVESTMENT THE PAST COUPLE YEARS. CHINA, WE HAVE OBVIOUSLY TAKEN INTO ACCOUNT THE GEOPOLITICAL BACKGROUND AS WELL, BUT YOUR OF AS WELL. WE ARE A GLOBAL INVESTOR BOTH PUBLICLY BUT ALSO PRIVATELY. THOSE ARE A COUPLE REASONS WE ARE EXCITED ABOUT. CAROLINE:
DIG IN A LITTLE CHINA. YOU SAID YOU TOOK INTO CONSIDERATION GEOPOLITICS. HOW IS IT AFFECTING THE WAY IN WHICH YOU ALLOCATE? >> THE REALITY IS A RISK RETURN. WE CAN ALWAYS PROGNOSTICATE WHAT GOVERNMENTS ARE GOING TO DO, ESPECIALLY GOVERNMENTS INTERNATIONALLY. JUST TAKE A LITTLE MORE OF A RISK PREMIUM WHEN THINKING ABOUT ALLOCATING REGIONS WHERE THERE MAY BE MORE PEOPLE TO CARESS THAT WE CANNOT ACCOUNT FOR. CAROLINE: WE ARE GOING TO HAVE THIS CONVERSATION MORE IN-DEPTH WITH A QVC.
WE TALK ABOUT COUNTRIES BUT WHAT ABOUT SECTORS? BOY, DO WE TALK ABOUT AI A LOT. ED: WHAT IS INTERESTING FOR ME IN PARTICULAR IS LOTS OF THE MOST EXCITING COMPANIES ARE PRIVATE. THEY ARE STAYING PRIVATE FOR LONGER. I THINK I AM RIGHT IN SAYING
THAT YOU INVESTED IN SPACEX FOR THE FIRST TIME IN 2015. THAT WAS A LONG TIME AGO. HOW DO YOU PLAY THAT FIELD WHEN THE MOST ATTRACTIVE COMPANIES ARE STAYING PRIVATE? >> THE BEAUTY OF OUR MODEL A FIDELITY AS WE CAN INVEST PRIVATELY AND PUBLICLY. THAT IS CLEARLY IN OUR DNA. WE CAN BE OPPORTUNISTIC IN INVESTING IN THE ABSOLUTE BEST COMPANIES OUT THERE. IT IS NOT ANY SECRET THAT WE THINK THE IP MARKET HAS BEEN FROZEN SUFFER OVER AT YEAR AT THIS POINT IN TIME AREA THE CREDIT MARKETS HAVE SUCH A STRONG DEPTH AT THIS POINT IN TIME.
NOT ONLY IN CAPITAL BUT ALSO QUALITY OF INVESTORS. THE BEAUTY IS ALL THESE COMPANIES CAN GO CUP -- PUBLIC WHEN THE TIMING IS RIGHT AND WHEN THE STARS ALIGN AS OPPOSED TO BEING FORCED TO GO PUBLIC. THE OTHER REASON WE DO THIS AT FIDELITY, AS YOU MENTIONED, IS THE NUMBER OF PUBLIC COMPANIES OUT THERE HAVE BEEN HALVED IN THE LAST 25 YEARS. THERE ARE A LOT OF COMPANIES THAT ONLY EXIST PRIVATELY. IT IS STRATEGICALLY IMPORTANT FOR US TO START INVESTING WELL AHEAD OF THEIR PUBLIC EVENT. ED: YOU HAD A LOTS EXITS. FACEBOOK, UBER, LET'S FOCUS ON SPACEX.
HOW DO YOU STAY FOCUSED ON THE OPPORTUNITY FOR THEM LONG-TERM? DO YOU COME BACK IN AND DO LATER ROUTES FOR FEAR OF MISSING OUT? DO YOU WORRY ABOUT THE PARTNERS THAT ARE TOUTED TO BE GOING INTO NAMES LIKE SPACEX? IT IS REALLY INTERESTING OF A MINDSET THAT YOU HAVE TO GO INTO FOR INVESTMENT LIKE THAT. >> SPACEX HAS CONTINUED TO EXECUTE EXTREMELY WELL. WHEN WE LOOK AT THEIR STARTLING CONSTELLATION OF THEIR -- STARL INK CONSTELLATION RIGHT NOW, THE FOCUS COMING OUT VERY SOON, IT IS FOCUS INCREDIBLY WELL. WE NEVER INVEST FOR FEAR OF MISSING OUT. WE INVEST WHEN WE CONTINUE TO
THINK THERE IS VALUE FOR OUR SPACE FOLDERS -- SHAREHOLDERS IN INVESTING MORE. CAROLINE: WE KNOW THERE ARE OTHER AREAS THAT YOU ARE INTERESTED IN. CLIMATE TECH AND ALSO AI MACHINE LEARNING. THAT IS WHAT EVERYONE SEEMS TO BE EXCITED ABOUT BUT WHERE IN THE APPLICATION OF AI ARE YOU EXCITED ABOUT? HAVE YOU COME TO GRIPS OF WHERE THE MONEY WILL BE MADE? >> THAT IS A GREAT QUESTION. WE ARE DOING A LOT OF WORK ON THAT QUESTION. AI HAS BEEN AROUND FOR DECADES
BUT NEEDLESS TO SAY, OPEN AI AND CHATGPT HAVE BROUGHT IT TO THE FOREFRONT. IT HAS CAPTURED THE IMAGINATION AND EXCITEMENT OF ALL OF US AND THAT IS A QUESTION WE ARE SPENDING A LOT OF TIME AND DOING A LOT OF RESEARCH ON AND MEETING WITH A LOT OF OTHER COMPANIES TO UNDERSTAND WHERE IS THE VALUE DECREE. THE APP LAYER, THE VALUE LAYER, THE INFRASTRUCTURE LAYER, OR SOME COMBINATION OF ALL THREE? WE DO NOT HAVE THE FINAL ANSWER. IT IS AN AREA WHERE WE ARE SPENDING A LOT OF TIME IN DOING A LOT OF RESEARCH AREA ED: 2022 HIT HARD.
HE SPOKE ABOUT HIS COLEMAN AND TIGER. DID YOU HAVE TO CHANGE STRATEGY IN REACTION? >> OUR STRATEGY HAS ALWAYS HAD CORE UNDERPINNINGS OF LOOKING FOR GREAT COMPANIES WITH A LARGE ADDRESSABLE MARKET. THE ARE DISRUPTING THINGS IN THE MARKET. PHENOMENAL MANAGEMENT TEAMS. WHAT HAS CHANGED FOR EVERYBODY IS THE CONCEPT OF GROWTH AT ANY COST. NOT JUST US BUT EVERY
INVESTOR IS VERY FOCUSED ON THE ROI ON EVERY DOLLAR SPENT, PROFITABILITY, OR A CLEAR AND CONVINCING PATH TO PROFITABILITY, AND MAXIMIZING MARGINS. EVERCORE IS UNDERLINING PRINCIPLES HAVE STASHED EVERCORE AND UNDERLYING PRINCIPLES HAVE STAYED THE SAME. CAROLINE: THANK YOU, KARIN FRONCZKE. MEANWHILE, BIG TECH STRUGGLES TO CUT JOBS IN EUROPE. ED: SPEAKING OF GOOGLE, THE SEARCH GIANT PLANS TO ADD ARTIFICIAL INTELLIGENCE FEATURES TO ITS FLAGSHIP SEARCH AS IT RESPONDS TO COMPETITION SUCH AS CHATGPT.
THEY SAY ADVANCEMENT IN IA -- IN AI WOULD SUPERCHARGE GOOGLE ED: AFTER ANNOUNCING THE LARGEST ROUND OF LAYOFFS IN HIS, U.S. BIG TECH COMPANIES BEING REMINDED HOW DIFFICULT IT IS TO REDUCE TYCO IN EUROPE PARTIALLY DUE TO LABOR LAWS LIKE FRANCE AND GERMANY. YOU WERE PART OF THE REPORTING TEAM ON THIS. WHEN IT COMES DOWN TO -- WHAT
IT COMES DOWN TO OUR LABOR PROTECTIONS. WHY ARE AMAZON AND ALPHABET FINDING THIS SO HARD TO ENACT? >> IT IS INCREDIBLY CHALLENGING IN SEVERAL EUROPEAN COUNTRIES TO DO THE SWEEPING LAYOFFS WE HAVE SEEN IN SILICON VALLEY WHERE WE HAVE SEEN PEOPLE HAVE TO PACK UP THEIR BOXES WITHIN WEEKS OR MONTHS OF THESE ANNOUNCEMENTS. THAT IS NOT THE CASE IN GERMANY OR FRANCE. TO LOOK AT GERMANY FOR A SECOND, THE REASON IS THERE NEEDS TO BE NEGOTIATION WITH WORK COUNCILS AND EMPLOYEE REPRESENTATIVES WITHIN THE COUNTRY -- COMPANY TO CREATE NEGOTIATION SETTLEMENTS FOR THE AMOUNT OF EMPLOYEES LEAVING, THE EXTENT OF THE CUTS, AND WHAT SORT OF SUPPLEMENT THEY ARE LIKELY TO GET. IN FRANCE, IT IS EVEN MORE
STRINGENT THAN GERMANY. WE ARE SEEING COMPANIES LIKE GOOGLE OFFER VOLUNTARY DEPARTURE SCHEMES. THEY ARE DISCUSSING, ESSENTIALLY, HOW TO GET PEOPLE TO LEAVE BY BUYING THEM OUT OF THEIR JOBS. CAROLINE:
THEY ARE HAVING TO GET REALLY GENEROUS. CAN YOU TALK US THROUGH THE CHANGES THEY HAVE TO MAKE TO GET MANAGERS TO LEAVE? >> THERE ARE DISCUSSIONS ABOUT GIVING SENIOR MANAGERS ARE A PACKAGES TO STAY AT THE COMPANY. THIS NOTABLY IS NOT PART OF THE SALES PACKAGES BUT ALSO SOMETHING WE HEARD AT META WITH THIS IDEA OF FLEXING THEIR WORKFORCE.
THAT IS SOMETHING META IS PROPOSING ACROSS THE BOARD. WHAT WE ARE SEEING IN FRANCE IS ALSO BASED ON AN ISSUE IN FRANCE WHERE IT IS NOT EASY TO LET PEOPLE GO WITHOUT CAUSE OR WITHOUT THEM DOING SOMETHING THAT MEANS THEY SHOULD BE FIRED FROM THEIR JOB. IT IS NOT SIMPLE TO LET PEOPLE GO FROM THESE ROLES. THESE LAYOFFS COME WITH A HUGE PRICE FOR THE COMPANIES.
WE HEARD ALPHABET INDICATE THE LAMBS COULD COST UP TO $2.3 BILLION GLOBALLY. WHILE THEY HAVE SAID THAT IN THE U.S., THE MAJORITY OF THE COST WILL BE FELT IN QUARTER ONE, THIS IS ALL ABOUT EFFICIENCY.
THESE COSTS FELT IN Q1 THIS YEAR IN THE U.S. IS NOT THE CASE WITH PIECES LIKE FRANCE AND GERMANY -- PLACES LIKE FRANCE AND GERMANY. ED: AMAZON DID NOT COMMENT ON THE STORY. EAGLE GOAL DID AND EXPLAINED TO US THAT IN SOME MARKETS, ROMANIA AND GREECE, THEY WILL NOT FOR NOW THE CUTTING JOBS.
THIS IS WHAT THEY HAD TO SAY. WE ARE SHOWING IT ON THE SCREEN RIGHT NOW. OLD-SCHOOL TECH STRUCTURE IS WHAT CAUGHT MY EYE. YOU HAVE -- AND BONUSES. THERE ARE CLEVER WORKAROUNDS THAT GOOGLE AND AMAZON ARE TRYING TO DO. WHAT ARE THEY?
>> THESE COMPANIES ARE LOOKING AT FINDING DIFFERENT WAYS IN WHICH TO PROVIDE STOCK OPTIONS, WHICH IS A GOOD EXAMPLE TO BE DEPARTING WORKERS, BUT ALSO WHEN YOU LOOK AT THE BROADER STRUCTURE AROUND HIRING IN EUROPE, THIS IS ALSO A CONVERSATION GOING FORWARD AROUND WHAT IT WILL LOOK LIKE TO BRING MORE PEOPLE ON BOARD IN THESE COMPANIES IN THESE REGIONS. AS YOU SAY, IN SOME MARKETS, THEY ARE NOT LETTING PEOPLE OFF AT ALL. THAT MAY BE A STRATEGIC POINT THAT THE OFFICES ARE NOT THAT BIG IN SOME OF THE MARKETS. IT IS ALSO ABOUT BEING ABLE TO HAVE ENOUGH PEOPLE ON HAND, THE MORE DEALING WITH THE HUGE AMOUNT OF CONTENT IN VARIOUS LANGUAGES AROUND EUROPE. WHILE GOING FORWARD THERE ARE THESE? 'S OVER THE COST -- THERE ARE QUESTIONS OVER THE COST, I DO NOT THINK THEY WILL BE PULLING OUT OF THE MARKET WHEN IT COMES TO HIRING. THEY ARE LIKELY TO STILL ENGAGE WITH THESE WORKFORCES BECAUSE COUNTRIES LIKE FRANCE AND GERMANY ARE HUGELY IMPORTANT FOR GOOGLE. CAROLINE:
THANK YOU SO MUCH FOR STAYING WITH US. WE APPRECIATE IT. LET'S TURN TO A STOCK. SAMSUNG HITTING ITS LOWEST PROFIT SINCE THE GLOBAL FINANCIAL CRISIS IF NOT LONGER.
TRIGGERING LOSSES IN THE SEMICONDUCTOR PART. WE GET PRELIMINARY REPORTS FOR THE MARCH PROFIT TOMORROW. WE WILL CONTINUE TO FOLLOW IT.
ED: TIME FOR TALKING TECH. FIRST, FINANCE IN THE CFTC LAWSUIT AGAINST BINANCE. THREE UNIDENTIFIED TRAINING FIRMS HAVE BEEN CITED AS VIP CLIENTS. JANE STREET GROUP, TOWER RESEARCH CAPITAL AND RADIX. THEY WERE CITED ANONYMOUSLY BY THE CFTC IN LAWSUITS OF EXAMPLES OF HOW CLIENTS ACCESS THE PLATFORM.
AN ILLICIT ONLINE MARKETPLACE WHERE USERS SOLD STOLEN BIG ACCOUNTS, PASSWORDS AND OTHER SENSITIVE INFORMATION WERE SHUT DOWN BY THE U.S., U.K., DUTCH AND OTHER AUTHORITIES. AUTHORITIES SEIZED THE SITE KNOWN AS GENESIS MARKET AS PART OF AN OPERATION DUBBED OPERATION COOKIE MONSTER. THEY WERE ABLE TO ASK HIS STATUS DELIVER MORE THAN ONE .5 MILLION COVER MICE COMPUTERS, ACCOUNTING FOR MORE THAN 80 MILLION CREDENTIALS THAT COULD BE ACCORDING TO THE DEPARTMENT OF JUSTICE. LAW-ENFORCEMENT ARREST OF 100 19 PEOPLE IN CONNECTION WITH THE WEBSITE, ACCORDING TO THE EUROPEAN AGENCY EURO POLL.
FINALLY, ELON MUSK SAYS ENTIRELY CLEAN ENERGY WILL REQUIRE $10 TRILLION BUT RELYING ON FOSSIL FUELS WILL COST 1420 AND DOLLARS. METAL REFINERIES ARE REQUIRED OVER THE NEXT 20 YEARS TO DELIVER RENEWABLE POWER RESTORATION AND CAPACITY WHICH WILL BE NEEDED TO POWER THE ECONOMY ENTIRELY WITH CARBON FREE ENERGY. TESLA SAYS IT HAS A PLAN PART THREE WHICH WAS PUBLISHED TODAY. IT FLESHES OUT DETAILS OF ELON MUSK VISION FOR A ROAD WITHOUT FOSSIL FUELS, FIRST OUTLINE LAST MONTH. CAROLINE:
STILL LANTUS PLANS TO MANUFACTURE AT -- STELLANTIS PLANS TO MANY FACTURE AN ALL ELECTRICAL VEHICLE. THE AUTO SHOW IS GOING ON AND SOME SUMMITS. TALK TO US ABOUT THE RAM THAT WILL FOCUS ON MAKING SURE THEY CAN ACCESS THE INFLATION REDUCTION ACT OFFERS FOR THE CONSUMER. >> TO GET IN THE GAME WITH THE INFLATION REDUCTION ACT, YOU HAVE TO BUILD THE VEHICLE IN THE U.S. BEYOND THAT, YOU HAVE TO SET ASIDE OTHER REQUIREMENTS OF WHERE THE BATTERIES ARE BUILT AND WHERE THE INGREDIENTS OF THE BATTERIES ARE MINED AND PROCESSED TO GET THE FULL $7,500 TWO. I THINK THE INFLATION REDUCTION
ACT WAS A BIG INCENTIVE. IT WAS UP IN THE AIR IN THE SENSE THAT CARLOS TOLD US ABOUT THIS AT THE AUTO SHOW YESTERDAY COMPLAINED GREATLY ABOUT THE COST OF BUILDING EV'S AND THE LACK OF PROFITABILITY. HE THOUGHT HE COULD POSSIBLY BUILD THE VEHICLE DOWN THERE IN MEXICO AND SAVE ON WAGES AND THAT SORT OF THING BUT HE SAYS IT IS COMING TO THE U.S. WHICH PLAN EXACTLY? TO BE DETERMINED. HE SAID IN THE NEXT WEEK OR SO, WE MAY KNOW THAT. ED: IN THE U.S., THEY ARE PLAYING CATCH-UP.
>> THAT IS RIGHT. THE COMPANIES THAT HAVE REALLY MADE A BIT -- A BIG COMMITMENT OUR VOLKSWAGEN AND GENERAL MOTORS. OBVIOUSLY, TESLA, PEOPLE ARE TRYING TO CATCH UP TO THEM. TOYOTA IS BEHIND. THEY DO NOT SEE PROFITS IN ELECTRIC VEHICLES AND THEY THINK THEY CAN BE A FAST FOLLOWER AREA CAROLINE: REMIND US OF THE SCOPE OF THE COMPETITION. I'M THINKING FOR? >> RAVINE AND SOME STARTUPS ARE. THEY ARE THE JETTA MITT PLAYERS BUT THEIR VOLUMES RIGHT NOW ARE SO SMALL.
RIVIAN IS LOOKING TO MAKE 50,000 VEHICLES. GENERAL MOTORS IS THE SAME. THEY WILL SELL 50,000 IN THE FIRST HALF OF THIS YEAR. TESLA IS ALREADY PUSHING ONE
MILLION GLOBALLY TRIGGERED SOME OF THESE TECH STARTUPS COULD HAVE DESIRABLE VEHICLES BEGIN TO CRITICAL MASS IS PRETTY TOUGH. ED: DAVID WELCH, THANK YOU. STICKING WITH AUTOS AND LOOKING AT SHARES OF TESLA. THE COMPANY TRIPLED AS WORKFORCE. THIS IS REPORTING FROM BLOOMBERG'S. AHOLD WHO DID THE FREE-FORM INFORMATION REQUESTS, WHICH AT THE DATA OF TRAVIS COUNTY AND FOUND THIS HAS BEEN RAPID GROWTH. SHARES ARE SOFTER BY 0.4%.
THIS IS BLOOMBERG. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I AM CAROLINE HYDE IN NEW YORK. ED: I AM ED LUDLOW IN SAN FRANCISCO. SINCE ABOUT HALF PAST 11:00, THE NASDAQ BREAKING INTO THE GREEN AS WE WORK TOWARDS WHAT IS GOING TO BE A HOLIDAY-SHORTENED WEEK. MAY BE MORE RISK APPETITE BUILDING INTO THE SYSTEM. WE ARE ANTICIPATING THE ALL-IMPORTANT JOB STATED TOMORROW. THE TWO YEAR YIELD FLAT AFTER
BEING ON THE DOWNSIDE AS MONEY SOUGHT MORE SAFETY. WE ARE SEEING BITCOIN AT THE 28,000 LEVEL. MOVING ON TO SOME OF THE MICRO MOVES, IF WE ARE GOING TO SEE MONEY MOVING INTO STOCKS IT IS GOING TO BE AI RELATED ON THE DAY WE ARE LOOKING AT TECHNOLOGY. ALPHABET SHARES UP 2.5%. THE REPORTING FROM THE WALL
STREET JOURNAL IS, YES, WE KNEW THAT AN AI CHATBOTS WAS BEING DEVELOPED AT GOOGLE, BUT THEY ARE LIKING TO LACE IT IN AND PROVIDE THE IMPACT WITHIN GOOGLE RELATIVELY SWIFTLY. ALIBABA, MORE CERTAINTY. AS SOON AS NEXT WEEK WE WILL UNDERSTAND THE UNVEILING OF ITS NEW GENERATIVE AI CHABAD AND WHAT THEY HAVE ON THE TABLE IN TERMS OF CHINA. CAROLINE: A LOT OF THIS DISCUSSION IS PLAYING OUT ON SOCIAL MEDIA.
YOU AND I ARE IN THE NEWS BUSINESS. WE ARE INTERESTED IN KNOWING HOW OUR AUDIENCE IS GETTING THEIR NEWS ASIDE FROM THIS PROGRAM. WE ASK, DO OUR DAILY POLL, THE RESULTS ARE FASCINATING BECAUSE SOCIAL MEDIA, ELON MUSK ONCE TWITTER TO BE THE GO TO NEWS. LOOK AT SUB STACK AND NEWSLETTERS, 12% OF THE VOTE. YOU THINK ABOUT WHAT HAS HAPPENED THIS WEEK, SOCIAL CAP, PUTTING THEIR PERFORMANCE NOTE OUT THERE ON SUB STACK. CAROLINE: MORE PEOPLE DECIDING TO GO DIRECT TO THEIR AUDIENCE. THERE HAS BEEN A BIT OF A BRAIN
DRAIN FROM MEDIA, PEOPLE LEAVING TO GO TO THEIR OWN DIRECT TO CONSUMER PROVISION THROUGH NEWSLETTERS. PEOPLE ARE BUILDING THEM WITH THEN MEDIA ORGANIZATIONS. ALSO A SUB STACK TO PROVIDE THEM ON A ONE-ON-ONE BASIS. ED: WHAT IS INTERESTING IS IT IS YOU, YOURSELF, PUTTING IT OUT ON A PLATFORM, MUCH LIKE ON SOCIAL MEDIA. SUB STACK IS ACTUALLY INVITING SOME OF ITS CONTRIBUTORS TO BECOME INVESTORS. THE NEWSLETTER PUBLISHER TAPPING MORE MONEY FROM LESS WEALTHY INVESTORS BY LETTING SUBSCRIBERS PUT IN AS LITTLE AS $100 FOR SHARES IN AN EFFORT TO KEEP GROWING AND WHAT IS A TOUGH MARKET FOR FUNDRAISING.
SUB STACK CEO JOINS US NOW. CHRIS, IS THE MOTIVATION HERE THAT YOU NEED MONEY FOR SOMESTACK OR THAT YOU ARE THINKING ABOUT AUDIENCE DEVELOPMENT? CHRIS: THE MAIN MOTIVATION IS WE HAVE BEEN BUILDING THE SUBSCRIPTION NETWORK. THIS YEAR WE HAVE SEEN IT START TO TAKE OFF. WE HAVE SEEN THE POWER OF THE NETWORK KICK IN AND PEOPLE GROWING FROM AS MORE PEOPLE JOIN THE PLATFORM THE PEOPLE WHO JOIN ARE CREATING A LOT OF THE VALUE. WE WANTED TO CREATE AN OPPORTUNITY FOR THEM TO BECOME INVESTORS. ED: I THINK THAT THE OTHER THING THAT WE ARE CONSCIOUS OF HERE IS THE REPUTATION OF THE PEOPLE THAT ARE POSTING THROUGH SUBSTACK. I MENTIONED SOCIAL CAPITAL.
THEY MADE IT AN ACTIVE CHOICE TO PUT THEIR ANNUAL PERFORMANCE OF THEIR FUND ON SUBSTACK RATHER THAN OTHER METHODS. CAROLINE: CLEARLY, YOU ARE WINNING SUBSCRIBERS. WRITERS AS WELL. 35 MILLION ACTIVE SUBSCRIBERS. I AM INTERESTED IN THE UPTAKE. HOW MANY HAVE SAID WE WANT TO NOT ONLY CONSUME BUT INVEST IN YOU TOO. SUBSTACK WE HAVE BEEN BLOWN AWAY BY THE RESPONSE SO FAR.
I ACTUALLY CANNOT TALK ABOUT IT TOO MUCH. YOU HAVE TO GO TO THE PAGE TO LOOK AT WHAT IS THERE. BUT WE HAVE BEEN VERY PLEASANTLY SURPRISED BY BOTH THE QUANTITY OF THE RESPONSE AND ALSO THE TENOR. WE HAVE HAD A LOT OF PEOPLE COME OUT AND TALK ABOUT WHY THEY BELIEVE IN SUBSTACK AND WHY THIS IS IMPORTANT FOR THE WORLD. I LOVE SEEING THAT 12% GRAPHIC AT THE START OF THE THING. THE 12 SMARTEST PERCENT. IT FEELS LIKE THIS THING IS REALLY GOING. CAROLINE:
WHAT ABOUT THE QUESTIONS THAT ARE BEING ASKED OF YOU? MORE TRANSPARENCY? I HAVE BEEN REPORTING ON WHEN THE BOND MARKET STARTED TO OPEN TO RETAIL INVESTORS IN THE U.K. AND EVERYONE SAID IT IS BECAUSE YOU GET MORE MONEY MORE CHEAPLY. THE INVESTOR IS NOT AS INTUITIONAL LIES AND DOESN'T ASK MORE NUANCED QUESTIONS. WHAT DO YOU SAY IN TERMS OF I WANT TO KNOW YOUR COSTS, I WANT TO KNOW YOUR REVENUE AT SUBSTACK ? CHRIS THE FACT OF THE MATTER IS SUBSTACK IS A PRIVATE COMPANY IN A VERY COMPETITIVE MARKET. A LOT OF THE WRITERS, THE PEOPLE ON SUBSTACK, ARE NOT JUST MEMBERS OF THE PUBLIC THAT ARE REPORTERS THEMSELVES. PEOPLE WHO COVER INDUSTRY. WE HAD TO THINK OF EVERYTHING
THAT WE RELEASE AS BECOMING PUBLIC. WE HAVE BEEN THOUGHTFUL OF HOW WE HAVE DONE THAT AND WE HAVE STUCK TO RELEASING EVERYTHING THAT WE RELEASE. OTHER THAN THAT WE HAVE NOT SHARED A TON.
THE PITCH THAT I HAVE BEEN MAKING TO PEOPLE IS REALLY, INVESTING IN STARTUPS IN GENERAL, EVEN A GREAT START UP LIKE SUBSTACK, IS A RISKY PROPOSITION. YOU COULD LOSE YOUR INVESTMENT. IT IS NOT SOMETHING TO DO LIGHTLY. A LITTLE BIT OF AN ANTI-CELL
FOR FOLKS ON THAT FRONT. I WANTED TO BE SOMETHING THAT IF THEY WANT TO BE PART OF, SOMETHING THEY BELIEVE IN. WE ARE NOT TRYING TO MAKE IT -- THIS IS AN OPPORTUNITY BE PART OF THIS THING IF YOU WANT TO. ED: AN INVESTORS RISK APPETITE IS OFTEN DRIVEN BY DATA AND THERE IS DATA REPORTED. YOU DID $9 MILLION OF REVENUE
IN 2021. HOW DID YOU DO IN 2022? CHRIS BETTER. BUT I WON'T TALK ABOUT IT. ED: YOU ARE TRYING TO APPEAL TO INVESTORS AND YOU TALKED ABOUT THE NEED TO BE TRANSPARENT AND HAVE PUBLIC-FACING DATA. EXPLAIN THE HEALTH OF THE BUSINESS. HOW DID IT GROW IN 2022? WE HAVE GONE OVER THE GROWTH, HOW DID THAT TRANSLATE TO THE BUSINESS? CHRIS: WE ARE AT 2 MILLION PAID SUBSCRIPTIONS.
THE TOP 10 PUBLISHERS ON SUBSTACK COMBINED TO MAKE $25 MILLION PER YEAR. THOSE ARE THE NUMBERS WE ARE SHARING. CAROLINE: IF YOU COULD HAVE RAISED THROUGH VC, WOULD YOU? I MISSED THAT. GO AHEAD. WHEN YOU HAVE FUND RAISED THROUGH VENTURE CAPITAL? I KNOW THAT YOU'RE SAYING THAT THIS IS THIS PERFECT WAY OF BUILDING MOMENTUM AND GETTING PEOPLE TO COME ON BOARD AND THEN BEST, BUT IF VENTURE CAPITAL HAD BEEN AWASH WITH CASH AND WE HADN'T HAD INTEREST RATES RISE WOULD YOU HAVE RAISED WITH VC IF THE MONEY HAD BEEN THERE AND IF THE CHECKS WERE EASIER TO HAVE BEEN WRITTEN? CHRIS: I UNDERSTAND. WE HAVE NOT RELIED ON OUTSIDE CAPITAL GIVEN THE STATE OF THE MARKET. WE ARE IN A PLACE WHERE WE HAVE
A PATH TO DOING THE AMBITION THAT WE SET OUT TO DO KIND OF REGARDLESS OF WHAT IS GOING ON IN THE MARKET. WHETHER THERE IS FURTHER OUTSIDE INVESTMENT. ANY OF THOSE THINGS. I LOOK AT THIS AS WE CAN BE A
LITTLE BIT -- WE CAN WORK WITH THE SITUATION THAT EXISTS IN THE MARKET. IF THERE ARE OPPORTUNITIES TO GET MORE MONEY ON FAVORABLE TERMS I THINK THAT THERE ARE WAYS THAT WE CAN USE THAT TO ACCELERATE, BUT WE DON'T NEED IT. THIS IS A BUSINESS THAT FUNDAMENTALLY WORKS AND WE HAVE A PATH TO BUILDING IT WITH WHAT WE HAVE. ED: WE STARTED THIS SEGMENT TALKING ABOUT WHERE PEOPLE ARE GOING FOR THEIR NEWS.
US, BLOOMBERG TECHNOLOGY, SOCIAL MEDIA, SUBSTACK. I THINK THAT YOU ARE WORKING ON SUBSTACK NOTES WHICH TO MANY SEEMS TO BE AN ATTEMPT TO OFFER SOMETHING SIMILAR TO TWITTER. CHRIS: I THINK THE ERA OF THE SOCIAL NETWORK AS WE KNOW IT IS IN THING. I THINK A LOT OF THE SOCIAL, THE ONLINE MEDIA PLATFORMS LIKE TWITTER, FACEBOOK, INSTAGRAM, OR SORT -- ARE SORT OF PULLING IN THE AD SUPPORTED BUSINESS MODEL. IT IS FORCING EVERYONE TO TURN INTO TIKTOK THAT IS IN THAT WORLD. IT CREATES A HUGE OPPORTUNITY IN A DIFFERENT DIRECTION THAT IS NOT ABOUT GRABBING EYEBALLS AND ATTENTION AT ALL COSTS, BUT INSTEAD IS ABOUT MAKING THINGS THAT PEOPLE VALUE, LETTING PEOPLE CONNECT TO THINGS THEY TRUST. I THINK THAT ALL OF ONLINE MEDIA IS GOING TO HAVE
TO TURN INTO TIKTOK OR TURN INTO SUBSTACK IN THE NEXT LITTLE BIT. SUBSTACK NOTES IS SORT OF OUR WAY TO BRING THE EASY SHARING, THE SHORT FORM, THE ABILITY TO RECOMMEND ANYTHING TO THE SUBSCRIPTION NETWORK THAT IS SUBSTACK. WE ARE TREMENDOUSLY EXCITED ABOUT IT. CAROLINE: THANK YOU FOR JOINING US.
MEANWHILE, COMING UP, COULD SOME AMERICAN INVESTORS BE FUNDING CHINA'S ANSWER TO OPEN AI? MORE ON THAT PRETTY HEATED DEBATE THAT IS PLAYING OUT ALL OVER TWITTER. WE ARE ALSO TALKING ABOUT PART OF THE SAUDI'S INVESTMENT FUND ACQUIRING A GAME MAKER FOR 4.9 BILLION DOLLARS. FREE TO PLAY SOCIAL GAMES. CAROLINE: PRESIDENT BIDEN IS GOING TO PROPOSE THE TOUGHEST EVER AUTO EMISSIONS RULES TO SPUR DEMAND FOR ELECTRIC VEHICLES. THIS HAS BEEN SOMETHING THAT THE PRESSURE WAS ON NOT ONLY FROM THE U.S. BUT GEOPOLITICALLY.
OUR EV EXPERT ON THIS SHOW, IF NOT THE NETWORK, TALK TO US ABOUT WHY WE ARE SEEING THE SUDDEN FOCUS ON EV'S. ED: THE REPORTING IS IMPORTANT. BIDEN IS STOPPING SHORT ON AN OUTRIGHT BAN BUT TOUGHENING MANDATES. UNDER THE PARIS CLIMATE AGREEMENT UNITED STATES HAS TO CUT ITS GREENHOUSE GAS EMISSIONS FROM 2005 LEVELS BY 50% FROM THE END OF THE DECADE. JOE BIDEN ALSO HAS A PERSONAL GOAL TO HAVE A 50% OF ALL NEW CARS BE ELECTRIC BY 2030. THIS IS HIM ACTING ON, WE BELIEVE THAT THE ANNOUNCEMENT WILL COME AFTER THE LONG WEEKEND, BUT CLEARLY SOME ACTION. CAROLINE: COMING FROM DETROIT.
WE HAVE HEARD OF ALL OF THE SUPPLY COMING IN TERMS OF EV'S, BUT IT IS DIFFICULT. TESLA IS THERE IN TERMS OF PRODUCTION BUT IT IS TAKING TIME FOR LEGACY MAKERS? ED: A LEGACY AUTOMAKER IN DETROIT TRANSITIONING FROM COMBUSTION ENGINES TO EV, WE KNOW THEY HAVE ASKED THE ADMINISTRATION FOR AN EXTENSION OF THE REQUIREMENT DEADLINES. TESLA IS THE OPPOSITE. WE ARE ALREADY IN THE GAME, BE TOUGHER. THAT IS WHAT TESLA, I'M SURE IN THE CORE DOORS OF THE WHITE HOUSE HAS BEEN CALLING FOR. CAROLINE: IN FACT, GEOPOLITICS ARE IN PLAY IN GENERAL WHEN IT COMES TO AI. THERE IS A BIT OF AN ARMS RACE BETWEEN THE U.S. AND CHINA AND IT SEEMS TO BE
GAINING MOMENTUM. AFTER OPEN AI CHAT GPT TOOK THE WORLD BY STORM LAST YEAR, VENTURE CAPITALISTS ARE STARTING TO RAISE CONCERNS THAT U.S. INVESTORS AND U.S. MONEY AND VENTURE CAPITAL COULD BE BACKING CHINA'S BEST HOPE IN THE FIELD. THE DEBATE IS PLAYING OUT ON TWITTER AFTER THE INFORMATION REPORTED YESTERDAY THAT INSTITUTIONAL INVESTORS FROM AMERICA ARE BACKING CHINESE-BASED VENTURE FIRMS TO PUT INTO CHINA'S TOP AI STARTUPS. YOU JOINED THE VC TAKING PART IN THAT DEBATE. TELL US, ARE YOU CONCERNED OR NOT CONCERNED BY SOME OF THIS HYPERBOLE? BRAIN: I AM REALLY ALARMED.
AI AS YOU REQUIRED IT REQUIRES CAPITAL. IT IS A VERY EXPENSIVE ENDEAVOR. THE IDEA THAT A VENTURE CAPITAL FIRM WOULD TAKE MONEY FROM INVESTORS IN THE U.S. AND SEND IT TO CHINA TO BUILD A PRODUCT THAT COULD BE USED AGAINST U.S. INTERESTS MAKES ZERO CENTS.
CAROLINE: DEMYSTIFY IF THE MONEY SHOULD BE PULLED BACK FROM PRIVATELY POSITIONED BUSINESSES. WE WERE TALKING ABOUT HOW ALIBABA IS SET TO AS SOON AS NEXT WEEK UNVEIL ITS OWN COMPETITOR TO CHAT GPT. I LOOKED AT WHO THE BIGGEST SHAREHOLDERS ARE OF ALIBABA AND ON THE AMERICAN DEPOSITORY RECEIPT PERSPECTIVE IS GOLDMAN AND MORGAN STANLEY. SHOULD THEY BE GIVING UP ON BACKING SOME OF THESE PUBLIC COMPANIES? BRAIN: IN GENERAL, THERE ARE OPPORTUNITIES IN OTHER MARKETS. CAPITALISM, WE AGREE WITH THAT, BUT THERE ARE CERTAIN TECHNOLOGIES. INTEL USES CHIPS THAT COULD BE MADE IN NORTH KOREAN MISSILES. WE DON'T ALLOW THAT IN THE U.S.
AND THIS IS THE SAME. U.S. CAPITOL AND U.S. KNOW-HOW SHOULDN'T BE USED IN CREATING THESE AI TOOLS. AFTER MAKING AN INVESTMENT THEY HAVE A RESPONSIBILITY TO MAKE SURE THE COMPANY IS SUCCESSFUL AND THEREFORE HELPING TO MAKE SURE CHINA IS SUCCESSFUL. CAROLINE: IT IS INTERESTING CERTAIN NAMES ARE HIGHLIGHTED BY THIS INFORMATION PEACE. BECAUSE, THEY HAVE VENTURE ARMS
IN CHINA. ONE OF THEM SPOKE OUT ON TWITTER. ED: THE IDEA IS THAT SEQUOIA HAS COME OUT AND ONE OF THEIR PARTNERS WE ARE SHOWING ON THE SCREEN NOW, SEQUOIA CHINA AND SEQUOIA ARE DIFFERENT. THE HEADLINE IS MISLEADING. INVESTORS HAVE BEEN GOING TO CHINA TECH FOR A LONG TIME. THIS IS SPECIFICALLY AN ANXIETY AROUND ARTIFICIAL INTELLIGENCE? WHY? WHY IS AI SO PROBLEMATIC? BRAIN: I WILL ANSWER BOTH THINGS. -- BRIAN:
I WILL ANSWER BOTH THINGS. WE ARE SEQUOIA, THE BRAND, WE CAN BUILD THE BEST COMPANIES AND THAT IS WHY YOU WILL GIVE MONEY TO EITHER ARM. THOUGH THEY MAY BE LEGALLY SEPARATE, IT IS ONE STRATEGY TO CREATE THE WORLD'S MOST SUCCESSFUL COMPANIES. IN THIS CASE, THAT IS AN ISSUE. TO THE SECOND POINT, WHY IS THIS SO DANGEROUS? I OFTEN DESCRIBE AI AS DOG YEARS.
IT IS NOT AGING YEAR BY YEAR. EVERY YEAR IS 3, 5, SEVEN YEARS. COUPLE OF YEARS FROM NOW WITH THEY ARE CREATING WILL BE USED TO CREATE A SURVEILLANCE TAPE THERE AND HERE. ED: YOU ARE AN AI EXPERT, CONSIDER YOURSELF TO BE AN AI EXPERT. YOUR SUCCESSES INCLUDE THE SALE OF AN AI COMPANY THAT YOU FOUNDED.
ARE YOU WORRIED THAT THIS IS JUST THE THREAT OF COMPETITION FROM CHINA OUT DOING WHAT IS HAPPENING IN THE UNITED STATES? BRIAN: CERTAINLY THAT IS TRUE, BUT THE WAY THAT CHINESE COMPANIES GO ABOUT THE AI SPACE IS DIFFERENT. I REMEMBER WHEN I STARTED MY COMPANY WE HAD THE NUMBER ONE SOURCE OF ATTACKS FROM CHINA. THE NUMBER TWO SOURCE WAS RUSSIA, CONSTANTLY TRYING TO GET ACCESS TO THE DATA SO THEY COULD USE THAT IN THEIR OWN USES. THEY JUST DON'T HAVE THE SAME
APPROACH TOWARD THE MORALITY AROUND THESE TECHNOLOGIES THAT WE DO IN THE U.S. CAROLINE: IN FACT, WE HAVE SEEN SOME ISSUES WITH THE MORALITY, ETHICS, SPEED OF DEVELOPMENT IN THE U.S. THAT OPEN LETTER COMING FROM HUNDREDS OF SIGNATORIES WANTING A STOP IN AI DEVELOPMENT IN THE UNITED STATES. IS THE U.S. AT RISK OF LOSING THIS BATTLE VERSUS THE CHINESE? WHAT MORE DO YOU WANT PUT IN PLACE FROM A FEDERAL LEVEL? BRIAN: IT IS A GOOD POINT. OUR HOUSE AND PANS ARE NOT
CLEAN EITHER IN THE WORLD OF AI. WE CAN DO AND BE BETTER. THERE IS A PROCESS AND A SYSTEM THAT CAN ALLOW FOR AN IMPROVED AI. WE ARE HAVING THOSE CONVERSATIONS NOW WITH MORALITY. OFTEN IN CHINA THESE ARE NOT CONVERSATIONS, OR THEY ARE CONVERSATIONS IN BACK ROOMS. I THINK THAT THAT IS ONE OF THE CHALLENGES. ED: WHAT ABOUT THE REVERSE?
ARE YOU AGAINST SAUDI OR CHINESE MONEY COMING IN AND INVESTING IN THE AI FIELD FOR U.S.-BASED STARTUPS? BRIAN: I AM COMPLETELY INCONSISTENT. I AM HAPPY TO TAKE THOSE DOLLARS AND USE THOSE. IN OUR FRAMEWORK. THAT SAID, I WOULDN'T WANT THOSE TECHNOLOGIES TO BE EXPORTED TO SAUDI FOR CHINA AND BE USED FOR HUMAN RIGHTS VIOLATIONS. CAROLINE:
FROM YOUR PERSPECTIVE, BRIAN, WHAT STOPS THIS? IN MANY WAYS, IF WE ARE SEEING IT FROM A NEGATIVE PERSPECTIVE, U.S. MONEY GOING TO CHINA, YOU ARE ALREADY SAYING THAT PANDORA'S BOX HAS BEEN OPENED. PEOPLE JOINT VENTURES WITH CHINA BECAUSE AT THAT POINT EVERYONE WAS TRYING TO BUILD A MORE GLOBAL AND GLOBALIZED STATE OF CAPITALISM. HOW DO YOU UNWIND THAT? BRIAN: I THINK CHINA HAS EVOLVED OVER TIME, AS HAS THE AMERICAN POSITION. YOU SEE ON THE RIGHT AND LEFT CONCERNS AROUND TIKTOK AND OTHER PLATFORMS. THE GENIE IS OUT OF THE BOTTLE, CERTAINLY, BUT IN THIS CASE IT IS NOT TOO LATE TO PUT IT BACK IN. REGULATION CAN PUT US WHERE WE
NEED TO BE IF WE HAVE THE STRENGTH TO PUT IT IN PLACE. CAROLINE: THANK YOU FOR JOINING US ON THE DEBATE. YOU ARE COMING UP AFTER THE FUTURE OF LIFE INSTITUTES LETTER CALLING FOR THE HALT TO AI DEVELOPMENT, WHAT IS THE REAL THREAT OF GENERATIVE AI? IS IT WAITING TO DEVELOP MORE POWERFUL DIGITAL MINDS? WE WILL DISCUSS THAT NEXT. THIS IS BLOOMBERG. >> THE IMPACT ON JOBS IS REAL, BUT IT DOESN'T HAVE THE SUPER INTELLIGENCE THAT WILL HAVE A MIND OF ITS OWN.
IT IS THE NEXT WORD BECAUSE THAT IS WHAT YOU'RE ASKING IT TO DO. CAROLINE: TALKING ABOUT HOW THE APOCALYPTIC SCENARIOS AROUND AI ARE UNLIKELY. ABOUT HOW THE REAL RISK OF AI DEVELOPMENT MIGHT BE MORE LINKED TO DISINFORMATION. RUN THROUGH THIS HYPE AROUND THE INTELLIGENCE PART OF ARTIFICIAL INTELLIGENCE. IT SEEMS TO BE A LITTLE BIT MAKING IT MORE OF THE HYPE CYCLE. WHAT ARE THE REAL ISSUES? >> IT IS TELLING THAT THE PEOPLE, MANY OF THE PEOPLE MOST WORRIED ABOUT THESE TECHNOLOGIES, ARE THE PEOPLE WHO ARE SELLING THESE TECHNOLOGIES. YOU CAN SEE WHY.
IF YOU'RE TRYING TO SELL SOMETHING IT'S USEFUL TO SAY THAT THIS MIGHT BE TOO POWERFUL AND TOO SCARY. THAT MIGHT BE CYNICAL, BUT AS THIS PIECE POINTS OUT THE CONVERSATION AROUND AI OVERLOOKS THE ISSUE OF MISINFORMATION, WHICH I WOULD ARGUE, AND I THINK MANY OTHERS ARGUE, IS THE REAL CONCERN. WE AREN'T TALKING ABOUT SUPER INTELLIGENCE TURNING US ALL INTO PAPERCLIPS. WE ARE TALKING ABOUT OUR SOCIAL MEDIA, SEARCH ENGINES, ALL OF OUR INFORMATION CONSUMPTION BEING FLOODED WITH GARBAGE OR STUFF THAT KIND OF LOOKS REAL BUT NOT REAL. YOU THINK ABOUT JUNKIE SEARCH RESULTS, JUNK FAKE STUFF ON SOCIAL MEDIA. THAT SORT OF THING. ED: CAROLINE AND I HAVE HAD SIGNATURE USE PETITION ON THE SHOW AND THEY DON'T EVEN AGREE THAT A SIX-MONTH PAUSE WOULD WORK. IS THERE ANYTHING THAT THEY DO
AGREE ON, WHETHER THEY WERE A OR NOT? MAX: WHAT IS INTERESTING ABOUT THE PETITION IS IT RINGS ON DIFFERENT VOICES THAT WOULD EXPRESS THE CRITIQUE THAT I AM EXPRESSING AND OTHERS WHO WOULD EXPRESS THIS APOCALYPTIC THING. THAT IS ONE REASON WHY I DON'T THINK THIS WILL LETTER HAS BEEN USEFUL OR WILL CHANGE A WHOLE LOT. THERE IS THE POSSIBILITY OF REGULATION FROM THE U.S. GOVERNMENT.
YOU CAN IMAGINE A SITUATION WHERE THE U.S. GOVERNMENT IS NOT WORRIED ABOUT A TAKEOVER, BUT SOMETHING SMALLER. ED: IT HAS US TALKING ABOUT IT EITHER WAY.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. CAROLINE: WE ARE OFF TOMORROW. HAVE A RELAXING TIME IF YOU ARE NOT WORKING AND DON'T FORGET TO CHECK OUT OUR PODCAST ON THE TERMINAL AS WELL AS ONLINE ON APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG.
2023-04-07 18:51
