'Bloomberg Technology' Full Show (05/16/2023)
ANNOUNCER: FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COMBINED, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE AND BLOOMBERG'S -- AT BLOOMBERG SWIRL HEADQUARTER IN NEW YORK. ED: AND I'M ED LUDLOW. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: COMING UP, THE RACE TO REGULATE ARTIFICIAL INTELLIGENCE IS UNDERWAY IN WASHINGTON AS THE OPEN A ICO LAYS OUT THE BENEFITS AND RISKS TO SENATORS. ED:
THE CEO OF THE HIPPOCRATIC AI JOINS US IN STUDIO TO DISCUSS THE REGENERATIVE AI -- GENERATIVE AI TECH. CAROLINE: AND A TECH TALENT RECRUITING SERVICE RECRUITED CALLED LASKY. ONCE AGAIN, WE ARE SEEING BIG TECH ON TOP, LACKLUSTER TRADING DAY COMING MUTED AS WE WARY ABOUT THE DEBT CEILING IN THE ARGUMENT ABOUND BETWEEN LEFT AND RIGHT, SEEING NASDAQ 100 UP .5%. BIG TECH SEEN AS SOME SORT OF HAVEN. WE WILL TALK ABOUT THE INDIVIDUAL NAMES THERE BUT NEXT, I SHOW THE WORLD IS MORE DOWN PAT ON THE MARKETS. BANK OF AMERICA, SHOWING HOW MUCH RISKY VERSION THERE IS FROM TRADERS AT THE MOMENT. WE SEE DOWN .3%, PEOPLE NOT WANTING TO ADD TO THE STOCK MARKET NOW.
10 YEAR YIELD UP SIX BASIS POINTS. EVEN AS WE SEE IN THE INDIVIDUAL RETAIL DATA COMING OUT AND SHOWING YOU AND I WILLING TO SPEND THIS INFLATIONARY DATA IT SEEMS SOME OF THE FEDERAL RESERVE SPEAK COMING FROM LORETTA MESLER, AND OTHERS, SEEM THERE ARE ALL EYES ON INFLATION OR LET'S LOOK AT IN TERMS OF BITCOIN, THE DOLLAR IS OUTPERFORMING MEANING BITCOIN IS ON THE DOWNSIDE. UP A PERCENTAGE POINT. AROUND 27,000. DIG INTO THE MOVERS, THEY ARE
ALL POINTS TO THE UPSIDE. ED: IT'S LIKE A MARKET TREADING WATER WHEN YOU THINK ABOUT THE MACRO. THE MICRO, THERE ARE STORIES. TESLA UP 1.6%, AFTER THE BELL. BLOOMBERG REPORTING OVERNIGHT, SHANGHAI MOVING TOWARD TRIAL PRODUCTION OF AN UPDATED MODEL THREE. THAT IS SUPPORTING THE STOCK. BAIDU SPEAKING AT CHINA, UP 3.3%, STRONG EARNINGS, A BEAT ON THE TOP OF BOTTOM LINE.
IT'S LIKE A POST-CHINESE NEW YEAR REBOUND, REOPENING OF THE ECONOMY AND BOOSTING CHINA TECH. WE GET ALIBABA THEY ARE IN THE WEEK SO WE WILL CONTINUE TO WATCH CHINA TECH, ESPECIALLY THE U.S. LISTED SHARES OF THOSE NAMES. AI, IT IS EVERYTHING. I PUT TWITTER ON VIDEO AND IT'S AT A'S EVERYTHING. LOOKING AT EQUITY MARKETS, WE DISCUSSED, LOOKING AT THE -- DEDICATED TO A LOT OF MOMENTUM'S ORIGINATES THROUGH INVESTOR INFUSION IN AI. AMAZON AND ALPHABET BOTH BIG MOVERS.
WE WILL GIVE YOU THE DETAILS WHY LATER IN THE SHOW BUT BLOOMBERG REPORTING IF YOU LOOK AT THE SIGNS, AMAZON MIGHT BE BRINGING A CHAT GPT STYLE BOUGHT TO AMAZON.COM WHICH IS SOMETHING WE HAVE BEEN WAITING FOR. THAT IS WHAT THE TALK IS ABOUT THIS TUESDAY MORNING.
ARTIFICIAL INTELLIGENCE. CAROLINE: AND HOW TO REGULATE ITS. RIGHT NOW, SAM ALTMAN, THE CEO OF OPEN I I -- OPEN AI, SAYING STEPS NECESSARY TO PUT IN PLACE RULES AROUND AI. TECHNOLOGY HE SAYS IS SO POWERFUL THAT HE IS WORRIED IT COULD HAVE REPERCUSSIONS AT A LEVEL FAR BEYOND ANYTHING WE ARE PREPARED FOR. HE ALSO SAID IT WILL CHANGE THE LABOR MARKET.
>> GPT FOR WILL I THINK ENTIRELY AUTOMATE AWAY SOME JOBS AND CREATE NEW ONES THAT WE BELIEVE WILL BE MUCH BETTER. CAROLINE: WE HAVE JUST PULLED OUT OF THAT HEARING AND ANNA EDGERTON, WHO HAS BEEN LISTENING INTO NOT JUST SAM ALTMAN BUT ALSO REPRESENTATIVES FROM IBM AND WE KNOW IBM HAVE SAID THEY ARE CUTTING THEIR BACK OFFICE STAFF MOST LIKELY BECAUSE OF AI AND SCIENTISTS ARE REPRESENTED. WHAT IS THE TAKEAWAY? >> IT HAS BEEN FOCUSED ON REGULATION.
YOU HAVE SAM ALTMAN AND THE TRUST OFFICER FOR IBM ALMOST PLEADING WITH LAWMAKERS TO REGULATE THE SPACE. THEY WANT GUARDRAILS AND CERTAIN GUARD LINES -- GUIDELINES TO PROTECT AGAINST THE DANGEROUS ABUSES OF THE TECHNOLOGY. WE HEAR FROM THE SENATORS THAT WE KNOW THIS IS A SPACE THAT NEEDS RULES BUT THEY ARE THE FIRST TO RECOGNIZE CONGRESS HAS NOT BEEN ABLE TO REGULATE THE TECHNOLOGY WE ALREADY HAVE. SOCIAL MEDIA HAS BEEN A BIG FAILURE FOR THE U.S. CONGRESS AND THEY ARE LOOKING
TO DO A BETTER JOB AS THEY LEARN MORE ABOUT ARTIFICIAL INTELLIGENCE. ED: YOU JOIN US FROM THE HILL. SOME ALTMAN CONTINUES TO SPEAK AND SAYS THE U.S. SHOULD FORM AN AGENCY TO LICENSE SOME AI EFFORTS. A LOT OF VENTURE CAPITALISTS AND FOUNDERS I KNOW DO NOT AGREE WITH THE IDEA OF LICENSING. THEY THINK IT IS BASICALLY A STOP TO INNOVATION.
WHEN YOU HAVE HEARINGS LIKE THIS, IT DEPENDS ON THE QUESTIONS ASKED. SOMETIMES LAWMAKERS GO WAY OFF TOPIC. HOW MUCH OF THE ASKED ABOUT U.S. LEADERSHIP IN THE FIELD OF ARTIFICIAL INTELLIGENCE OUTSIDE OF THE REGULATORY DEBATE? >> THERE HAVE BEEN THOUGHTFUL QUESTIONS ON THIS. THEY HAVE HAD THOUGHTFUL ANSWERS AS WELL. HE MADE AN INTERESTING POINT WHEN HE SAID THE U.S.
CAN LEVERAGE ITS LEADERSHIP IN THE DEVELOPMENT OF MICRO EGG -- MICRO ELECTRONICS AND CHIPS TO RUN THESE AI SYSTEMS. THE U.S. CAN LEVERAGE THE LEADERSHIP TO ENCOURAGE GLOBAL GOVERNANCE SO NOT ONLY ARE WE SETTING GOALS IN THE UNITED STATES BUT HE MADE THE POINT WE ARE NOT THE ONLY ONES DEVELOPING THIS TECHNOLOGY. THIS IS SOMETHING THAT HAS THE POTENTIAL TO IMPACT THE WHOLE WORLD.
WHEN IT COMES TO GOVERNANCE OF THIS NEW TECHNOLOGY, IT NEEDS TO HAPPEN ON A GLOBAL LEVEL. CAROLINE: TO THAT END, MANY BE UNSURPRISED TO KNOW THE EU HAS BEEN LEADING THE REGULATORY CHARGE. THEY ARE ALREADY PROPOSING POTENTIAL LAWS IN THE NEXT MONTH THAT WILL BE EYED BY THE COMMISSION. I'M INTERESTING ON HOW MUCH YOU THINK LAWMAKERS ARE SEEING WHAT EUROPE IS LOOKING AT, THINKING ABOUT THE GLOBAL ABILITY TO REGULATE. ANNA: CERTAIN LAWMAKERS ARE -- AND CHRISTINA MCCUMBER HE OF IBM HAD THIS INTERESTING COMMENT IN HER OPENING STATEMENT.
SHE SAYS THERE HAS BEEN A LOT OF HYPE AROUND GENERATIVE AI BUT THAT DOES NOT IN WE SHOULD MOVE AWAY FROM THE RISK-BASED -- RISK-BASED APPROACH IN EUROPE. THEY HAD THIS WELL THOUGHT OUT REGULATION BASED ON THE RISK OF THE USE OF AI RATHER THAN THE DEVELOPMENT OF THIS TECHNOLOGY. NOW YOU HAVE CHATGPT EXPLODING ONTO THE SCENE AND REGULATORS THINKING MAYBE WE NEED TO INCLUDE THIS GENERAL USE TOOL IN THIS REGULATION AS WELL. SHE IS TRYING TO ARGUE THAT IS WHAT WE SHOULD NOT DO. WE SHOULD NOT LOOK AT THE HYPE AROUND CHATGPT, THE OTHER GENERATIVE AI PRODUCTS, AND PROJECT THAT ONTO THE REST OF THE ARTIFICIAL INTELLIGENCE ECOSYSTEM, WHICH INCLUDES THE ENTERPRISE AI THAT IS OFFERED BY COUNTRIES LIKE IBM. CAROLINE: IT REALLY IS ABOUT APPLICATION
FOR MANY AT THE MOMENT. ANNA EDGERTON, THANK YOU SO MUCH. CUT HER BACK ONTO THAT HEARING IN THE MOMENT. FANTASTIC ANALYSIS FROM CAPITOL HILL. WHAT ABOUT THOSE THAT USE TO ADVISE GOVERNANCE? WHAT ABOUT THOSE THINKING ABOUT THE APPLICATION OF REGULATION? LINDSEY GORMAN IS ONE OF THEM.
LINDSAY, THUS FAR, ARE THE RIGHTS GUARDRAILS BEING THOUGHT ABOUT HERE FROM A GLOBAL PERSPECTIVE? LINDSAY: I THINK THE RIGHT ISSUES AND PROBLEMS ARE BEING THOUGHT ABOUT BUT I WILL CAP YACHT THAT BY SAYING THE PROBLEMS WE CAN ANTICIPATE TODAY MIGHT NOT BE THE PROBLEMS THAT END UP CAUSING US THE MOST CONSTERNATION ONCE THESE TECHNOLOGIES BECOME MORE WIDESPREAD. BUT I THINK THE LEVEL OF LITERACY WHEN IT COMES TO THE REAL CONCERNS ARE AND ALSO WHAT THE POSSIBILITIES ARE BEING THOUGHT ABOUT, CONCERNS AROUND ELECTIONS AND DISINFORMATION AND DISRUPTION OF DEMOCRATIC PROCESSES, CONCERNS ABOUT WORKFORCE AND JOBLESS PLACEMENT. AND CONCERNS ABOUT HOW WE INTERACT WITH SYSTEMS AND WHAT MORALS AND VALUES GET PUT INTO THESE SYSTEMS ON THE FOREFRONT. I THINK THE RIGHT QUESTIONS ARE
BEING ASKED. OF COURSE WE CAN ONLY KNOW WHAT WE KNOW NOW AND 10 YEARS FROM NOW WE MIGHT SAY WE WERE COMPLETELY LOOKING AT THE PROBLEMS FROM A DIFFERENT ERA. CAROLINE: WHEN WE LOOK AT WHAT THE EU, FOR EXAMPLE, IS THINKING OF PUTTING IN PLACE, THEY WANT TO PRODUCE RISK ASSESSMENTS, WANT TO SEE SOME RISE OF COPYRIGHTED MATERIAL MODELS HAVE BEEN TRAINED ON, AND THEY WANT IT TO BE FLAGGED WHEN YOU ARE LOOKING AT AI IN GENERAL MOST NOTABLY LOOKING AT DEEPFAKES. DOES THAT TO YOUR POINT OF VIEW GO FAR ENOUGH AND ULTIMATELY ARE WE JUST IN A GAME OF WHACK-A-MOLE OVER AGAIN? LINDSAY:LINDSAY: I HOPE NOT. I THINK THE EU HAS TAKEN ONE OF THE MOST AGGRESSIVE APPROACHES TO THOUGHTFUL REGULATION OF AI OR THE EU AI ACT OR RISK-BASED APPROACH. IN THE U.S., ANOTHER RISK-BASED FRAMEWORK HAS BEEN PUT OUT BUT IT IS COMPLETELY VOLUNTARY.
ONE THING I THINK THE EU HAS IN ITS POCKET AS PERHAPS AN ADVANTAGE IN COMING UP WITH THOUGHTFUL REGULATION IS THAT IT ALREADY HAS A DISTINCT FRAMEWORK AROUND DATA PRIVACY. TODAY AT THE HEARING, YOU HEARD MULTIPLE SENATORS TALK ABOUT THE NEED FOR PROTECTING DATA, TRAINING THESE AI MODELS. ULTIMATELY IF YOU'RE TRAINING THE DATA ON CERTAIN MODELS, THAT -- THOSE BIASES AND BIASES IN THE DATA ARE PROPAGATED AND VALUES OF THE DATA WILL BE PROPAGATED THROUGH THAT. THE EU HAS THE GENERAL DATA PRIVACY FRAMEWORK. THE U.S.
DOES NOT HAVE THAT. IT'S A LITTLE CONCERNING THAT, DESPITE THE ENTHUSIASM WITH WHICH LAWMAKERS ARE TACKLING THE AI ISSUE, WHICH IS A POSITIVE, THAT WE ARE STILL NOT ABLE TO PASS FEDERAL DATA PRIVACY LEGISLATION. I THINK THE EU HAS A LEG UP IN APPLYING THEIR EXISTING FRAMEWORKS AND THAT IS WHY WE HAVE SEEN COUNTRIES SUCH AS ITALY APPLIED DATA REGULATION TO CHATGPT AND HOW THAT -- HAVE THAT BASIS FOR WHAT ARE THE THINGS THAT NEED DEMAND AND, THE COMMON USES, THE JUSTIFY ABILITY OF THAT -- JUSTIFYABILITY OF THAT. CAROLINE: EVERY CONVERSATION WE HAVE TENDS TO INVOLVE REGULATION, EVERYONE SEEMS TO AGREE IT IS NEEDED AND NOT JUST SELF-REGULATION BUT THE APPLICATION OF SUBDUING IS SOME OF A BLACK BOX HERE. ED: YEAH, THE DIFFERENCE OUR GUESTS NOTIFY OFTEN IN THE SHOW, LINDSAY, IS THAT IF YOU REGULATE THE DEEP LEARNING PART, THE TRAINING OF THE MODELS, YOU MIGHT KILL INNOVATION. THERE'S A DIFFERENCE BETWEEN
REGULATING INFERENCE OR IN OTHER WORDS THE USE OF ARTIFICIAL TECHNOLOGY, THE TOOL, AND OF ELEMENT OF IT. WHERE DO YOU THINK WE SHOULD FOCUS OUR REGULATORY EFFORTS? LINDSAY: THIS IS REALLY THE DEBATE YOU HEARD IN THE HEARING WHICH IS DO WE TAKE AN APPROACH OF ONLY REGULATING THE POINT WHERE TECHNOLOGY MEETS SOCIETY, THE APPLICATIONS, OR DO WE NEED TO REGULATE IN THE MODEL DEVELOPMENT. I THINK BOTH HAVE MERITS. CLEARLY WE NEED TO REGULATE IN THE FORMER CASE AND FOCUS ON THE ACTUAL HARMS BEING CAUSED IN SOCIETY OR COULD BE CAUSED. BUT THAT SAID, THOSE HARMS ARE NOT TECHNOLOGY NEUTRAL. THEY ARE NOT APPLICABLE REGARDLESS OF HOW YOU TRAIN THE MODELS. I THINK THAT IS WHERE IT GETS
COMPLICATED WHERE THE INPUTS TO THE TRAINING TO MAKE A DIFFERENCE ON HOW THE HARMS COULD GET PROPAGATED, ONCE TECHNOLOGY MEETS SOCIETY. THIS IDEA THAT LAWMAKERS HAVE SAID TODAY THAT WE HAD SECTION 230 WHERE WE SAID COMPANIES DEVELOP AND WE WILL GIVE YOU THE SPACE AND NOT REGULATE. I DO NOT THINK THAT IS GOING TO IRON OUT IN THE AI ERA. ED: DO YOU AGREE THAT THE U.S. SHOULD ESTABLISH AN AGENCY TO LICENSE AI DEVELOPMENT? LINDSAY: I WOULD LIKE TO HEAR MORE ARGUMENTS ON BOTH SIDES. I THINK WE HAVE JUST GOTTEN TO THE SCRATCHING THE SURFACE ON WHETHER WE NEED A WHOLE NEW AGENCY. THE POINT I AGREE WITH, THAT
SAM AND OTHERS MADE, AS WE DEFINITELY NEED MUCH MORE RESOURCES, WHETHER WITH EXISTING AGENCIES OR A NEW AGENCY. THE IDEA THAT WE COULD KEEP UP WITH DEVELOPMENTS AND REGULATORS AND POLICYMAKERS COULD KEEP UP WITH DEVELOP ITS WITHOUT GROWING -- THROWING MORE RESOURCES INTO HIRING EXPERTS, TO UNDERSTAND AND TO CRAFT POLICY SOLUTIONS ON THEM, I THINK IS COMPLETELY CRAZY. WHETHER THAT IS A NEW AGENCY OR SIGNIFICANTLY BEEFING UP OF EXISTING AGENCIES, WE DEFINITELY NEED A SIGNIFICANT RESOURCE INVESTMENT. ED: WE SHOULD POINT OUT THAT IT IS NOT JUST SAM ALTMAN WE HAVE BEEN TALKING A LOT ABOUT, THE IBMS CHIEF OFFICER IS ALSO TESTING AND I. LINDSAY GORMAN, SENIOR FELLOW AT THE GERMAN MARSHALL FUND, THANK YOU. COMING UP, GRINDER REPORTS
FIRST-QUARTER RESULTS AND WE UNPACKED THE NUMBERS WITH THE CEO, GEORGE ARISON, NEXT. TAKING A LOOK AT SINGAPORE-BASED SE. SHARES FALLING. THIS IS THE TECH COMPANY WE REPORTED LAST WEEK THAT WAS RAISING WAGES AFTER ALL OF THE CUTS THEY HAVE DONE IN RECENT MONTHS, GETTING MORE HEALTHY BUT SOMETHING IN THE OUTLOOK AND SOME THING IN THE EARNINGS INVESTORS DO NOT LIKE, STOCKED OUT SIGNIFICANT. THIS IS BLOOMBERG.
♪ ED: RINDR -- GRINDR REPORTING FIRST QUARTER EARNINGS, UP FROM $43.5 MILLION PER YEAR, AROUND 20% GAIN YEAR-OVER-YEAR. SHARES DOWN AFTER REPORTING A NET LOSS OF $32.9 BILLION -- $32.9 MILLION. WE BRING IN THE GRINDER CEO. SO GO FOR THE TOPLINE ANTICLINE YEAR-OVER-YEAR ON EPS BUT WHAT IS THE DIFFERENCE IN THE ENVIRONMENT AT THE BEGINNING OF THIS YEAR VERSUS LAST YEAR FOR PEOPLE INTERACTING WITH ONE ANOTHER? >> I'VE ONLY BEEN ON THE JOB FOR SIX MONTHS I CAN'T SPEAK ABOUT LAST YEAR PER SAY THIS YEAR WAS -- ED: [INDISCERNIBLE] >> THIS YEAR WAS REALLY GOOD AND WE GREW WELL.
39% GROWTH AND NUMBERS EXCEEDED THE GUIDANCE. I THINK ON THE EPS SIDE, THERE IS SOME STUFF THAT MAKES THAT STUFF LOOK DIFFERENT BECAUSE OF ACCOUNTING BUT THAT IS NOT IMPACTING OUR BUSINESS. IT IS EXTREMELY WELL, USERS ARE ENGAGED, AND OVERALL AVERAGE, USER UP QUARTER OF A CARTER -- QUARTER. ED: WHAT ARE PEOPLE TURNING TO GRINDR FOR? WHAT IS THE BEHAVIOR YOU SEE? GEORGE: GRINDR HAS ALWAYS HAD A LOT OF SUCCESS IN GETTING EACH NEW GENERATION TO COME ON THE PLATFORM SO OTHER SOCIAL MEDIA PLATFORMS LOSE USERS AND WE HAVE NOT HAD THAT. WE KEPT USERS COMING IN.
I THINK FRANKLY THE FACT ALL USERS ARE THERE IS A REASON WHY PEOPLE COME BACK. THAT ENGAGEMENT IS REALLY STRONG AND GRINDR IS VERY AUTHENTIC, A COMPANY BUILT BY GAY PEOPLE FOR GAY PEOPLE. WE KNOW USERS WANTED MORE INNOVATION OF THE PRODUCT AND THAT IS SOMETHING WE ARE HAPPY TO GIVE. CAROLINE: LET'S TALK ABOUT INNOVATION.
IN SOME CASES IT FEELS OLD-SCHOOL OR YOU HAVE GRINDR WEB. TELL ME WHY YOU LISTENED AND HEARD FROM YOUR USER BASE AT THAT IS WHAT THEY WANTED. >> YES, WE JUST LAUNCHED THAT UP THIS MONTH AND THE THINKING IS THERE ARE BUNCH OF FEATURES YOU CAN LAUNCH ON THE WEB THAT YOU CAN'T REALLY LAUNCH ANYWHERE ELSE BECAUSE OF LIMITATIONS THAT ARE PUT ON YOU. THAT IS SOMETHING I USE SO GRINDR WEB THAT WE LAUNCH WHICH IS IN BETA IS A WAY TO SET US UP FOR THE FUTURE, TO LAUNCH ADDITIONAL FEATURES THAT ARE MORE SPECIFIC TO THE USERS THAT OUR USERS WANT THAT WE CANNOT REALLY DO ON THE APP. CAROLINE: MONETIZATION, WHAT ARE WAYS IN WHICH YOU ARE THINKING ABOUT PEOPLE USING IT, PAYING FOR IT, IN A DIFFERENT OR SEAMLESS WAY ON THE APP ITSELF? GEORGE: WHAT WE HAVE HEARD FROM USERS ON OUR SUBSCRIPTION, THEY WENT TO THINGS, THEY WANT A SLIGHTLY HIGHER -- SLIGHTLY LOWER COST MODEL WHERE WE HAVE AN ENTRY POINT THAT IS NOT 1999 -- 19 THOSE $.99 -- $19.99. WE ARE WORKING ON THAT LOWER
PRICE. THEY ALSO WANT US TO BUILD MORE FEATURES ON THE HIGHER END. OBVIOUSLY A LOT OF THE ADD-ONS THAT GRINDR DOES NOT YET HAVE ALL THE CART WE ARE BUILDING. AND WE THINK THERE'S A LOT OF OPPORTUNITY TO BUILD FUNCTIONALITY THAT SUPPORTS ACTIVITY ALREADY HAPPENING IN THE APP SUCH AS DAILY THAT WE DON'T HAVE PUNCTUALITY FOR. BUILDING ON THE APP, WE HAVE A BIG PORTION OF USERS THAT CANNOT REALLY BE OUT FOR A VARIETY OF REASONS, WHETHER IT IS WHERE THEY LIVE OR FAMILY SITUATIONS. FOR THEM, GRINDR WEB IS A GREAT
BUILDING OPTION. IT IS NOT AVAILABLE YET BUT IT IS COMING. ED: THIS PAST WEEK, ONE ELON MUSK SAID THAT TWITTER ADDING DATING FUNCTIONALITY.
IT WAS AN INTERESTING IDEA. HOW SERIOUS LEAD DO YOU TAKE THE THREAT? GEORGE: LET'S SEE WHAT HE DOES BE A TIE THINK IT WILL BE INTERESTING HOW HE APPROACHES THINGS AND YOU NEVER BANK ON ELON MUSK, NOBODY ELSE HAS DONE WHAT HE'S DONE WITH HOMINY COMFY AS YOU CAN BUILD -- HOW MANY COMPANIES HE HAS BUILT. I THINK -- I'M NOT REALLY WORRIED ABOUT THAT FROM OUR USER BASE PERSPECTIVE BUT MORE BROADLY CERTAINLY. ED:
GRINDR CEO GEORGE ARISON AND CEO, THANK YOU. CAROLINE: LET'S TAKE ON EARNINGS. LET'S LOOK AT CHINESE GIANT BAIDU, SHARES TRADED IN THE U.S. HAVE BEEN PERFORMING RELATIVELY WELL. UP 3.5%. LOOKS AS THOUGH THE COMPANY MANAGED TO BEAT EXPECTATION, STRONGER-THAN-EXPECTED REVENUE, 10% GREW AFTER ADVERTISING. SEEMS TO BE BENEFITING FROM CHINA'S POST-PANDEMIC REOPENING OVERALL. SOME STRENGTH THERE.
COMING UP, WE HAVE TO TALK ABOUT WORRIES POST SILICON VALLEY BANK COLLAPSE. THE FORMER CEO CURRENTLY TESTIFYING BEFORE THE U.S. SENATE COMMITTEE. THEY ARE BUSY ON THE HILL. HE HAS TO SAY OF COURSE ABOUT FOCUS, FAILURE, AND WHAT IS NEXT FOR REGIONAL BANKS MORE GENERALLY. WE WILL DIG INTO THAT IN A
MINUTE. THIS IS BLOOMBERG. ♪ CAROLINE: WE ARE DISSECTING EVERYTHING HAPPENING ACROSS WASHINGTON, NOT ONLY THE AI FOCUS OF SAME ULTIMATE BUT SILICON VALLEY BANK FOCUS. ATTESTED FOR CASE AND IN FRONT OF A REPRESENTATIVE. WE DIVE DEEPER WITH SONALI BASAK. THEY WILL HAVE A TOUGH CROWD. WHAT ULTIMATELY DO THINK HE IS SAYING? IS IT LANDING THE WAY HE WANTED TO DO YOU THINK? >> YOUR INTERESTING -- YOU ARE HEARING TWO SIDES OF THE STORY FROM LAWMAKERS, ONE SET ARE FRUSTRATED, AND HOW MUCH BECKER WAS PAID. HE DECLINED TO SAY WHETHER HE
WOULD IMPACT SOME OF HIS BONUSES AS A RESULT OF THE BANK FAILURE AND THE ULTIMATE BLAME TO MISMANAGEMENT. THERE IS A CENSURE AMONG A SEPARATE SET OF LAWMAKERS I BELIEVES A LOT OF THIS WAS BROUGHT ON BY THE FED MISMANAGEMENT AS WELL AS THE FAST RISE IN INTEREST RATES. YOU HEARD LAWMAKERS REALLY ATTACK A BIDEN ADMINISTRATION HERE, AND THE INFLATIONARY ENVIRONMENT THAT HAD LED TO THE -- CAROLINE: IT'S A BECOMING BIPARTISAN? >> CERTAINLY BECOMING VERY POLITICAL.
AND WE KNOW ALSO FOR ITS OWN WORK HERE, WE KNOW FED OFFICIALS ARE ALSO BEING GRILLED IN WASHINGTON THIS WEEKEND HAVE ALSO OUTLINED THEIR OWN FAILURE OF OVERSIGHT FOR SOME OF THESE FIRMS AS WELL AND THE FBI SEE. ED: OF COURSE WE HAVE BEEN LISTENING INTO THE HEARING. LET'S TAKE A LISTEN TO WHAT WAS SAID. >> I BELIEVE SVB PHOEBE'S FAILURE WAS BROUGHT ABOUT BY A SERIES OF UNPRECEDENTED EVENTS. DESPITE STARK DIFFERENCES IN OUR BUSINESS MODELS, NEWS REPORTS AND INVESTORS WRONGLY LUMPED SVB AND SILVER GET TOGETHER. RUMORS AND MISSED CONVENTIONS -- MISCONCEPTION SPREAD ONLINE, CULMINATING ON MARCH 9 WITH THE FIRST EVER SOCIAL MEDIA BANK RUN LEADING TO 42 BILLION IN DEPOSITS DRAWN FROM SVB IN 10 HOURS OR ROUGHLY $1 MILLION EVERY SECOND. ED:
HE CLAIMS DIFFERENT FACTORS SVB/SILVER GAETZ BUT DID WE HEY -- DID WE HEAR ANY ADMISSION ON HIM TAKING RICHEMONT ABILITY FOR WHAT HAPPENED? SONALI: I DON'T THINK HE TOOK RESPONSIBILITY FOR ALL OF IT AND I THINK THAT IS THE IMPORTANT PART. THIS IDEA OF A SOCIAL MEDIA DEAL BANK RUN, THERE IS A LOT TO BE UNDERSTOOD ABOUT HOW THAT HAPPENED. EVERY BANK'S CEO ACROSS THE COUNTRY AND EVERY PRIVATE EQUITY FIRM TRYING TO BACK THAT IS NOW HAVING THE SAME QUESTION. CAN THIS HAPPEN AGAIN? THAT IS WHY HEARINGS ARE STILL SO IMPORTANT BECAUSE KIND OF CHANGES NEED TO BE MADE TO THE BANKING SYSTEM OUT OF THIS FEE ON THE POLITICS THAT WERE SEEN PLAY OUT TODAY? ED: SONALI BASAK, A STORY THAT REALLY HIT THE HEART OF SILICON VALLEY. HIPPOCRATIC AI RAISING $50 MILLION TO POWER BOTS AND HEALTH CARE SYSTEM. OUR INTERVIEW WITH THE CEO NEXT. THIS IS BLOOMBERG.
♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M CAROLINE HYDE IN NEW YORK. ED: I AM ED LUDLOW IN SAN FRANCISCO. LET'S GET A CHECK ON THE MARKETS.
THERE IS LINGERING CONCERN ABOUT THE DEBT CEILING AND PROGRESS THAT WE ARE SEEING OR LACK OF IT IN WASHINGTON, D.C. NASDAQ 100 UP HALF A PERCENTAGE POINT. BAIDU HAD STRONG EARNINGS. ALIBABA REPORTS LATER IN THE
WEEK WITH AIR MOVERS LIKE TENCENT TO THE DOWNSIDE, NASDAQ, GOLDEN DRAGON, PLAN INDEX, THOSE U.S. LISTED CHINA SHARES DOWN 8.5% -- DOWN HALF A PERCENTAGE POINT. IN MARCH, BITCOIN BACKED DOWN TO 27,000 U.S. DOLLARS. IN TERMS OF THE INDIVIDUAL MOVERS, BAIDU MOVING TO THE UPSIDE, STRONG EARNINGS BE TOP AND BOTTOM LINE.
THE STORY ABOUT REBOUND IN CHINA AFTER THE CHINESE NEW YEAR EASING OF RESTRICTIONS, TRAVEL STARTING BACK UP AND THE AD BUSINESS DOING WELL AND AI EVERYTHING. ALL THE TIME AI. THERE IS NO MAIN CATALYST, THE ALPHABET -- ALPHABETS, THE PARENT OF GOOGLE, YOU SEE GAINS. BLOOMBERG REPORTING MAKING MOVES. CAROLINE: PERFECT SEGUE. FIRST UP, ALPHABET, MAKING BACK THE MARKET CAP GROUND AS ITS ARTIFICIAL INTELLIGENCE GAME IS BACK ON.
IT SEEMED TO BE LACKING BEHIND PEERS IN THE RACE TO DEPLOY GENERATIVE AI PRODUCTS. GOOGLES PARENT COMPANY IS ADDING MORE THAN $150 BILLION IN MARKET VALUE SINCE UNVEILING PLANS FOR ITS AI TOOLS LAST WEEK. MEANWHILE, IF YOU HAVE BEEN SCOURING THE JOB BOARDS FOR AI-RELATED JOBS, AMAZON HAS SOME LISTED, THE E-COMMERCE TRIED IS PLANNING TO ADD CHATGPT STYLE SEARCH FUNCTION TO ITS ONLINE STORE, JOB POST REVIEWED BY BLOOMBERG NEWS AS PART OF A LARGER EFFORT FOR EFFORTS BY MICROSOFT AND GOOGLE TO WEAVE THIS GENERAL -- GENERATIVE AI AND TO ITS OWN SEARCH EFFORTS. ED: HEALTH CARE START UP, HIPPOCRATIC AI STAKING ITS CLAIM IN THE LARGE LANGUAGE MODEL BOOM WITH ITS TOOL AND HOPES TO MAKE MEDICAL CARE MORE ACCESSIBLE. THE PALO ALTO-BASED COMPANY LAUNCHED IT TODAY AND RAISED $50 MILLION IN SEED ROUND FROM GENERAL CATALYST. HERE IN THE STUDIO WITH ME IS MUNJAL SHAH,
THE CEO. $50 MILLION FROM A SEED ROUND. THAT'S A LOT OF MONEY. WHAT IS THE VALUATION ON THIS? YOU'VE COME OUT WITH A LARGE MODEL YOU SAY IS COMMERCIALLY READY. WHAT IS YOUR VALUATION? MUNJAL: WE ARE NOT ANNOUNCING THAT TODAY BUT WE REALLY FELT THAT GENERATIVE AI HAS REALLY CAPTURED THE IMAGINATION OF REALLY THE WORLD AND IT HAS CAPTION IS LIKE -- CAPTURED THE ZEITGEIST. WHEN YOU THINK ABOUT ITS APPLICATIONS TO HEALTH
CARE, YOU REALIZE THERE ARE 3 MILLION MISSING HEALTH-CARE WORKERS IN THIS COUNTRY. WE DO NOT HAVE ENOUGH PEOPLE AFTER THE PANDEMIC, SO MANY BURNED OUT AND THERE IS NO WAY TO CLOSE THE GAP EXCEPT USING TECHNOLOGIES LIKE GENERATIVE AI TO DO THAT. ED: THE MISCONCEPTION THIS MORNING IS YOU HAVE RELEASED A CHATGPT STYLE BOT THAT REPLACES THE DOCTOR AND PHYSICIAN. THAT IS NOT THE CASE AT ALL
THOUGH? MUNJAL: NO. WE DON'T THINK GENERATIVE AI IT IS READY TO DO THAT. WE THINK DIAGNOSES NEED TO COME LATER WHEN THESE MODELS ARE SAFE. THINK THERE'S A SET OF
APPLICATIONS IT HEALTH CARE IS WAY BIGGER THAN JUST THE DOCTOR. THERE ARE SO MANY PEOPLE -- ED: YOU'RE TALKING ABOUT BACK-OFFICE? MUNJAL: NOT JUST THAT, YOU HAVE REGISTERED DIETITIANS, GENETIC COUNSELORS, YOU HAVE MANY OTHER ROLES THAT ARE SUPPORTING ROLES AND SUPPORTING ACTORS IN THE HEALTH CARE SYSTEM THAT COULD BENEFIT FROM GENERATIVE AI. CAROLINE: I'M INTERESTED IN WHAT YOU SEE AS THE REGULATORY ENVIRONMENT WITH WHICH YOU PUT THIS. PEOPLE ARE GOING TO BE FEARFUL OF MEDICAL ADVICE PLUS CHATGPT. MANY ALREADY KNOWING YOU ARE NOT GOING TO GET AN ABUNDANCE OF ADVICE WHEN YOU GO INTO OPEN AI'S PRODUCT, WHEN YOU GO INTO BART. WE HEAR FROM SAM ALTMAN THINKING ABOUT PRESSURE, SAYING
FOR OPEN AI AND GOOGLE TO TAKE ON BOARD BUT THEY DO NOT WANT TO SLOW DOWN THE STARTUPS. AS A MAN WHO HAS BEEN IN I THROUGHOUT YOUR LEARNING EXPERIENCE, WHEN YOU RIDE UNIVERSITY, WHEN YOU AND ONTO FURTHER YOUR EDUCATION AND GOT TO BUILD COMPANIES, IS REGULATION GOING TO HELP OR HINDER YOU? MUNJAL: I THINK THIS IS AN AREA THAT DOES NEED A REGULATORY FRAMEWORK. AND ONE THAT ALLOWS US ALL TO CREATE SAFE, LARGE SINGLES MODELS AND GENERATIVE AI. WE DECIDED WHEN WE WERE BUILDING HIPPOCRATIC AI THAT WE WANTED IT TO BE SAFETY FIRST. THIS WAS THE FOUNDATION OF HOW WE DESIGNED THE COMPANY AND DESIGNED THE PRODUCT. OUR NAME HIS HIPPOCRATIC OATH, OUR TAGLINE IS DO NO HARM. THIS IS OUR NUMBER ONE FOCUS AS
A COMPANY AND WE FOCUSED ON A SET OF KEY FEATURES TO DO THAT. CHIME HAPPY TO SHARE. CAROLINE: LET'S DELVE IN. WE UNDERSTAND YOUR STARTUP HAS -- THE AI HAS 100 HEALTH CARE CERTIFICATIONS.
WHAT IS THE DATA YOU ARE TRAINING ON AND WHAT ARE THE SAFETY PRINCIPLES YOU HAVE WOUND INTO THAT? MUNJAL: WE BUILT IN FOUR TO FIVE THINGS TO MAKE IT SAFER. THE FIRST WAS WE CERTIFIED IT. WE DID NOT JUST SAY LET'S PASS THE U.S. MEDICAL LICENSING MODEL. WE SAID LET'S ALSO LOOK AT THE NURSING EXAM, THE PHARMACY EXAM, AND WE SAID LET'S GO THROUGH ALL OF THESE. WE DID 114 EXAMS WITH GROUPS LIKE ALL OF THE DENTAL EXAMS TOGETHER, ALL OF THE PHYSICIAN EXAMS AND SET IT IS IMPORTANT TO BE CERTIFIED. THESE ARE THE EXACT THINGS YOU
SEE AT THE END OF YOUR NURSE'S NAME ON HER BADGE. SHE HAS THE LITTLE LETTERS, THE SAME CERTIFICATIONS USED TO HIGHER HEALTH CARE WORKERS ARE THE SAME CERTIFICATIONS WE USE AND TESTED ON OUR LANGUAGE MODEL. SECOND, WE RECRUITED THOSE EXACT SAME HEALTH CARE WORKERS, 80 ETTRICK NORSE IS -- NURSES CAME IN AND GAVE US FEEDBACK ON HOW IT WAS DOING ON THOSE QUESTIONS, OUR DIETITIANS CAME IN AND DID THE SAME. WE BELIEVE, WHO IS BEST TO
JUDGE THE ACCURACY OF A LEG WHICH MODEL THEN PEOPLE DOING THOSE EXACT JOBS TODAY? THOSE ARE TWO OF ABOUT FOUR TO FIVE DIFFERENT THINGS WE HAVE DONE TO REALLY MAKE THIS A SAFER SYSTEM. ED: WHEN DO YOU MAKE ELM OPEN TO THE PUBLIC? MUNJAL: WE DECIDED ON A THRESHOLD-BASED LAUNCH STRATEGY RATHER THAN TIME-BASED STRATEGY. WE SAY WHEN THOSE PROFESSIONALS I TOLD YOU ABOUT, WHEN WE HAVE THE DIETITIANS USING IT AND THEY SAY THIS IS READY TO GO OUT, THAT IS WHEN IT WILL GO OUT. ED: HOW DO YOU MONETIZE? MUNJAL:
WE WILL FIGURE THAT OUT AFTER WE MAKE SURE WE BUILD A SAFE AND READY LANGUAGE MODEL. I THINK YOU CANNOT SAY YOU ARE SAFETY FIRST AND THEN BE LIKE I'M LAUNCHING ON THIS DAY. YOU HAVE TO SAY I'M LAUNCHING WHEN THE LANGUAGE MODEL IS READY AND THE PROFESSIONALS WHO DO THE TASK SAY IT IS READY.
CAROLINE: YOU SAID AND I AM SURE YOU DID NOT -- IT WAS A COME AT THAT COMES OUT BUT YOU SAID NURSES, SHE, AND IN MANY WAYS WE WOULD SAY YEAH, THOSE NURSES ARE FEMALE BUT THEREIN LIES SOME OF THE ISSUE AND CONCERN AROUND BIAS WITHIN THE SORT AVAIL MODELS AND DATA THAT HAS RUN. I'M SURE YOU THINKING -- YOU ARE THINKING DEEPLY, PARTICULARLY FROM A MEDICAL PERSPECTIVE, HOW DO YOU COUNTERACT FOR THAT GOING FORWARD? MUNJAL: WE HAVE ALREADY BEGUN TESTING THE BIAS OF THE MODEL. YOU CAN GO ON OUR SIDE -- SITE AT HIPPOCRATICAI.COM. AND YOU CAN LOOK AT THE BIAS OF ON MODEL INCLUDING CERTAIN ETHIC BIASES AND GENDER BIASES. SO FAR, WE WERE ABLE TO SHOW
LESS BIAS THAN GPT FOUR BUT THAT IS JUST THE BEGINNING, OUR FIRST INSTALLMENT, DOWN PAYMENT ON SAYING WE JUST LAUNCHED BUT WE ARE ALREADY TESTING THIS AND WE CARE ABOUT THIS AND IT IS SOMETHING THAT WE WILL CONTINUE TO WORK ON EACH DAY. ED: JUST TO PUT OUT TO OUR AUDIENCE, I WROTE ABOUT THIS THIS MORNING, HIPPOCRATIC AI, THE BENCHMARKS WERE TESTED AGAINST CHATGPT IN 140 CERTIFICATIONS I WENT TO OPEN AI AND ASKED FOR THEM TO COMMENT ON THAT PERFORMANCE RELATIVE TO THE HIPPOCRATIC AI AND HIPPOCRATIC ADD TO NOT REPLY. JUST PUTTING THAT OUT THERE. MUNJAL SHAH, THE CEO OF HIPPOCRATIC AI ON THE DAY THEY RAISED THEIR SEATS. A TECH TALENT RECRUITING SERVICE CALLED LASKY, ACCORDING TO A BLOOMBERG SOURCE, BLOOMBERG BETA, PART OF BLOOMBERG LP, WAS AN INVESTOR IN LASKY AND ASIA ACCOUNTS JOINS US WITH MORE.
WHAT IS IT AND WHY? >> LASKY IS ORIGINALLY A STARTUP THAT DOES RECRUITING. IT MATCHES EMPLOYERS OF CANDIDATES, VERY STRAIGHTFORWARD. IT IS NOT EXACTLY CLEAR WHY EXPORT OR TWITTER WAS INTERESTED IN BUYING THIS COMPANY. MUSK SAID HE WANTED TO CREATE AN EVERYTHING APP SO IT COULD BE PART OF THAT. CAROLINE: WE ARE LEFT TRYING TO FILL IN ADULTS AND MEANWHILE LASKY DOES NOT SEEM TO BE OPERATING ON LINE AND AM WAITING FOR THE LATEST TWEET OUT OF THERE PRETTY ACTIVE TWEETER IN CHIEF, THEIR CEO DOES A LOT ONLINE. REMIND US OF THE OVERALL VISION OF THE X PRODUCT BECAUSE MANY SAY THAT IS WHY THE NEW CEO TWITTER FOR EXAMPLE HAS COME ON BOARD.
>> RIGHT. THAT IS ONE THING HE SAID, WHEN HE ANNOUNCED THE HIRING OF THE NEW CEO, HE SAID THIS IS PART OF THE VISION TO CREATE THIS EVERYTHING APP. HE HAS BEEN PRETTY VOCAL. HE SEES IT AS AN APP WHERE YOU CAN DO EVERYTHING FROM MAYBE MAKING PAYMENTS LIKE BOOKING A TICKET OR SENDING MONEY TO A FRIEND. HE HAS NOT EXACTLY EXPLAINED WHAT IT IS BUT HE IS TAKING IDEAS FROM THINGS LIKE HIS OR WHEN YOU ORDER FOOD AND ALSO ORDER A CAB OR WE CHAT IN CHINA. HE TALKS ABOUT TWITTER WHERE YOU CAN DO THAT, ANYTHING YOU MIGHT IMAGINE AND ADDING IN THE PAYMENT STRUCTURE AS WELL. CAROLINE:
IT'S GREAT TO CATCH UP WITH YOU. THANK YOU. AISHA COUNTS. WE HAVE OUR VC SPOTLIGHT NEXT. IT IS WITH SOMEONE WHO KNOWS ELON MUSK AND BACKING OTHER COMPANIES. THIS IS BLOOMBERG. ♪ >> THE LAST 10 YEARS, FINANCIAL SERVICES HAS STEEN AND EXTRAORDINARY CHANGE. THAT OF DIGITAL BANKING, MOBILE BANKING, AND ALL OF THE TECHNOLOGY-ENABLED SERVICES WE CONSIDER TO BE TABLE STAKES. THE NEXT 10 YEARS WILL TAKE
THAT TECHNOLOGY IMPACT AND EXPAND IT. THE PRIMARY DRIVER WILL BE RELATED TO THE DEPLOYMENT OF ARTIFICIAL INTELLIGENCE. CAROLINE: THAT'S THE FORMER JP MORGAN EXECUTIVES SPEAKING ABOUT THE BIG INNOVATIONS THAT WILL RESHAPE THEN TECH SPACE IN PARTICULAR AND EVERY INDUSTRY WHEN IT COMES TO AI. LET'S BRING IN HANDRAIL AMARI FROM MANHATTAN VENTURES PARTNERS FOR MORE ON THE WORLD OF INVESTORS, IN FACT YOUR OWN PORTFOLIO IS FASCINATING, DISCORD IN MANY WAYS AI-DRIVEN BUT ONE OF THE COMPANIES OF FINTECH BUSINESS THAT HAS ALREADY USED CHATGPT PLUG-IN AND OPEN AI PLUG-IN. HOW ARE YOU THINKING ABOUT THE ETHICAL WAY IN WHICH THESE COMPANIES ADOPT AND LET THIS GENERATIVE AI RUN THEIR OWN PROPRIETARY DATA.
>> SO OVERALL, WE ARE THINKING ABOUT GENERATIVE AI AS A TOOL FOR GOOD BUT WHAT IT IS SHOWING TO ME IS THAT COMPANIES ARE LEARNING SO MUCH MORE ABOUT THE CONSUMER BASE AND ALLOWING THEIR CONSUMERS TO SPEND TIME SHOWING TRENDS IN A MUCH MORE VULNERABLE WAY, WHICH WE FIND FASCINATING. THE WAY IT IS ENGAGING WITH CUSTOMERS AND AWAY THEY ARE GATHERING DATA TO PROVE THERE ARE WAYS TO USE AND HARNESS THE DATA TO REALLY PROVIDE BETTER PRODUCTS AND SERVICES TO CONSUMERS FROM A LEMMING PERSPECTIVE AND SPEND PERSPECTIVE. IT SEEMS CONSUMERS ARE ENGAGING WITH THE AI THAT IS SO MUCH MORE REAL AND AUTHENTIC THAT IT EVER HAS BEEN. ED:
IF FINANCIAL CONDITIONS ARE GETTING TIGHTER AND IT IS HARD OUT THERE FOR FOUNDERS, OUR VENTURE CAPITALISTS INPUT INTO MAKING AI-RELATED INVESTMENTS THAT IN ANY OTHER ENVIRONMENT THEY WOULD NOT MAKE BECAUSE OF THE HYPE? ANDREA: OVERALL, WHAT IS SO INTERESTING ABOUT THE SPACE MAKING AI IS SOME OF THE COMPANIES WERE ALREADY UTILIZING AI FUNCTIONALITY AS A WAY TO HARNESS DATA AND USE INSIGHTS OF THE ARTIFICIAL INTELLIGENCE DATA TO BUILD BETTER PRODUCTS. WHAT IS FUNNY IS VCS TODAY ARE HAVING A HARD TIME DETERMINING WHAT IS GOING TO MAKE MONEY. SOME OF THE COMPANIES ARE REALLY TAKING A PUSH TOWARD OPERA -- OPEN SOURCING TECHNOLOGY VERSUS EXLEY MAKING IT A REPEATABLE SUBSCRIPTION-BASED BUSINESS I THINK THAT IS THE BIG DAY -- DEBATE AND THE VC WORLD, WHAT WILL MAKE MONEY. ED:
WHAT IS ACTUALLY GONNA MAKE MONEY? YOU INVEST IN SPACEX. WHEN IS SPACEX COME TO MONEY? IS SPACEX EVER GOING TO IPO OR SPINOFF STARTING? ANDREA: OVERALL, SPACEX HAS A LOT OF CASH AND THEY MAKE MONEY BY WAY OF THE STARLING SPACE SHIPS AND SALLE SERVICES BECAUSE, OVERALL, A LOT OF PEOPLE ACROSS THE WORLD NOW THAT IT IS ON EVERY CONTINENT ARE SPENDING MONEY ON STARLING. IT IS GENERATING A TON OF REVENUE. WHAT WE THINK IS STARLING IS BIG ENOUGH AS A BUSINESS THEY COULD SPIN OFF EVENTUALLY. I SEE AN INDEPENDENT IPO. IF WE JUST SEE THAT HE WERE TO INTEGRATE GENERATIVE AI INTO SPACEX, IT MIGHT BE A DONE DEAL. IF THAT WERE THE CASE. CAROLINE:
TALK TO US A LITTLE ABOUT TOMORROW'S IPO'S TODAY WHICH MANHATTAN VENTURES PARTNERS SORT OF TAGLINE IS. YOU ARE ALL ABOUT THE SECONDARY MARKET AND WHAT IS THE SECONDARY MARKET LIKE FOR ANY COMPANY WHETHER IT BE THE VISION OF X, SPACEX, OR ANY COMPANIES YOU HAVE IN YOUR PORTFOLIO, PEOPLE WILLING TO BUY THE SECONDARY MARKET. ANDREA: SO RIGHT NOW, IT IS FASCINATING BECAUSE YOU ARE GETTING TO SEE THE SECONDARY MARKET IS DRIVING THE TRUE VALUE OF EVERY PRIVATE COMPANY.
OVERALL, I THINK IT IS THE REAL INDICATOR FOR WHERE INVESTORS ARE LOOKING TO BUY AND SHAREHOLDERS ARE LOOKING TO SELL. I THINK WE HAVE NEVER SEEN A MORE LIRE OPPORTUNITY TO DIVE INTO THE SECONDARY MARKET AND WHAT IS FASCINATING IS COMPANIES THEMSELVES ARE COMING TO US AND MANY OTHERS IN THE SECONDARY MARKET SPACE AND SAYING WE DO NOT REALLY KNOW WHAT THE VALUE OF OUR COMPANY IS IN THE CURRENT MARKET BECAUSE WE LAST RAISED A BIG ROUND OF FUNDING IN MID-2021. THE TOP LEADING INDICATOR WE SEE ARE THE SECONDARY MARKETS TO PRICE COMPANIES AT THEIR TRUE ASSET VALUE. IT IS FASCINATING TO SEE IT AND WE OURSELVES ARE SEEING THE OPPORTUNITIES ARE GROWING EXPONENTIALLY IN THE COMPANIES ARE THANKFUL THERE IS A REAL INDICATOR THAT GOES BEYOND A NEW ROUND OF PRIMARY FINANCING. CAROLINE: ED, AT THE MOMENT, WHEN WE ARE TALKING ABOUT PRIMARY ROUND OF FUNDING, IT AIMS TO BE AI RELATED. ED: IT DOES. THAT IS THE PART WE WANT TO UNDERSTAND BETTER IS FORGET THE HYPE CYCLE, WHAT ARE YOU DOING TO WAKE UP EACH DAY AND SAY HERE'S WHERE WE WILL DEPLOY CAPITAL, HERE'S THE PLAN FOR 20 TO ANY THREE? WHAT IS DRIVING -- 2023? WHAT IS DRIVING THE VC'S? ANDREA: WHAT IS INTERESTING WITH THE THESIS DRIVEN APPROACH, ALL COMPANIES APPROACHING US AND WE ARE APPROACHING THEM FROM CAPITAL RAISING IS THEY ARE LOOKING TO PRESERVE THE VALUATION THEY LAST HAD, AND IT IS ALMOST A VALUATION AT ALLSTATE, ALL PERMITS ASIAN'S OF VALUATION. WHAT IS INTERESTING IS, FROM A
THESIS PERSPECTIVE, WE ARE DETERMINING WHETHER OR NOT TO INVEST IN COMPANIES THAT HAVE INVESTOR SWEETENERS INVOLVED IN THE NEXT ROUND OF FUNDING OR MAYBE IT IS THE BEST ENTRY PRICE IS THE SECONDARY MARKET VALUE. MAYBE THE NEXT ROUND OF FUNDING IS CLUTTERED WITH STRONG INVESTOR PROVISIONS THAT ALLOW FOR PROTECTION UPSIDE. I THINK A LOT OF INVESTORS IN OUR SPACE, ESPECIALLY GROWTH AND LATE STAGE, ARE DETERMINING WHETHER OR NOT THE NECK ROUND OF FUNDING IS ATTRACTIVE ENOUGH TO GO INTO, RELATIVE TO SECONDARY. CAROLINE: AFTER LINDA YACCARINO NEWS CAME ON TWITTER, DID THE VALUATION YOU SAW FROM TWITTER AS PART OF YOUR PORTFOLIO, GOING PRIVATE, IS THAT SOMETHING YOU THINK WILL -- IS GETTING A CLEAR DESTINATION AND INVESTORS MORE INTERESTED? ANDREA: HAVING LINDA INVOLVED WE THINK IS A STRONG INDICATOR OF WHERE WE BELIEVE ELON IS PLAYING THE SEA LEVEL SHUFFLE IS WHAT WE LIKE TO CALL IT, BRINGING IN THE STRONG ADULTS TO REALLY BRING IN A BACKGROUND IN ADVERTISING MEDIA WHICH OVERALL THAT IS WHAT THEY REALLY FOCUSED ON, ADVERTISING MEDIA AND CONTENT DRIVEN. I THINK IT IS A STRONG SIGNAL LINDA IS A PHENOMENAL EXECUTIVE WITH AN INCREDIBLE GROUND I THING MANY IN THE INDUSTRY ARE VERY IMPRESSED WITH HER ABILITY TO LAND. I THINK GENERALLY WE CONSIDER THAT A POSITIVE. ED:
ANDREA LAMARIM, WHO IS ABLE TO TALK ABOUT EVERY NEWS ITEM THIS WEEKEND HAS INVESTMENTS RELATED TO EVERY SUBSECTOR WE DISCUSSED, SO THANK YOU VERY MUCH FOR YOUR TIME. IN OTHER NEWS, SOUTHEAST ASIA'S MOST ACTIVE EARLY-STAGE TECH INVESTMENT FIRM RAISE 250 BILLION FOR ITS FUND, A RARE SIGN OF CONFIDENCE IN THE GLOBAL TECH SECTOR IN A TO MULCHER THIS YEAR. THE FIRM SAYS IT WILL ALLOCATE -- TO MULCHER WITH YEAR. THE FIRM SAYS IT WILL ALLOCATE CAPITAL FOR STRONG -- ONE BILLIONAIRE UNLOADED HALF $1 BILLION OF ALPHABET SHARES IN AN APPARENT GIFT. ANY GUESSES? THIS IS BLOOMBERG. ♪
CAROLINE: GOING VIRAL, THE UNUSUAL GIFT FROM THE GOOGLE COFOUNDER IN FILING WE SAW MONDAY SHOWS GIFTED ALPHABET SHOWERS -- SHARES WORTH SIX UNDER MILLION DOLLARS LAST THURSDAY. IT IS UNCLEAR WHO GOT THE 5.2 MILLION SHARES. WE KNOW IT COULD BE TO CHARITY OR A TRUST OR ANOTHER FINANCIAL INSTRUMENT. ULTIMATELY, THIS SAW THEIR WEALTH SEARCH A COMBINED $18 BILLION. WE KNOW WHY, BECAUSE OF AI. ED: IT ALL COMES OUT OF MOMENTUM FROM GOOGLE I/O, WHERE WE FINALLY UNDERSTOOD HOW ALPHABET TAKES ITS COMPETENCE AND PUTS IT INTO ITS TOOLS. BUT I WAS THERE AND I WOULD SAY
THEY STRESSED DELIBERATE, SLOW ROLLOUT. SAFETY, GUARDRAILS, NOW WE HAVE ALTMAN SPEAKING ON CAPITOL HILL. CAROLINE: WHO HAS BEEN STRESSING SAFETY. WE KNOW IT HAS WRAPPED UP NOW, THE SENATE HEARING THAT FEATURED SAM ALTMAN, CEO OF OPEN AI AND IBM AND SCIENTISTS. HE IS ULTIMATELY SAYING THERE WERE NO CHATGPT FIVE TRAINING IN THE NEXT SIX MONTHS. IT SEEMS TO BE UNDER SOME DURESS. WE HEARD THAT FROM COLLEAGUES
ON TWITTER SAYING WHATEVER YOU MIGHT BE HEARING, GPT FIVE IS NOT CURRENTLY UNDERWAY. BUT NOTABLY EVERYONE WANTS TO KNOW WHAT THIS HAS ON START OF CULTURE AND IN TERMS OF SOCIETY AS WELL. ED: AND THE ALTMAN SAYS THE PRESSURE SHOULD BE ON LEADERS. OPEN AI AND GOOGLE, THAT WAS RICHARD BLUMENTHAL, THE CONNECTICUT DEMOCRAT WHO CHAIRS THE SUBCOMMITTEE, AND HE ALSO QUESTIONED ABOUT THE U.S.
LEADERSHIP. CAROLINE: YEAH. B'S OF EACH EYE AND A SOMETHING WE CONTINUED TO DISCUSS. HOW CAN YOU REGULATE WITHOUT OFFSETTING INNOVATION? AND WHAT A THOROUGHLY DEEP DIVE WE HAD TODAY.
THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." TOMORROW, THE FOUNDING PARTNER OF M 31 FROM SALT I CONNECTIONS IN NEW YORK. YOU DON'T WANT TO MISS IT. ED: YEAH.
2023-05-18 21:55
