'Bloomberg Technology' Full Show (05/18/2023)
FROM THE HEART OF WHERE INNOVATION, MONEY, POWER COLLIDE. THIS IS BLOOMBERG TECHNOLOGIES WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I MET WORLD HEADQUARTERS IN NEW YORK. THIS IS BLOOMBERG TECHNOLOGY. COMING UP TIKTOK BANDED MONTANA? THE FIRST U.S. STATE BANNING SOCIAL MEDIA ACROSS ALL PHONES. IN TODAY'S D.C. SPOTLIGHT, WE SPEAK WITH AN AI
INVESTOR. AND WE BRING YOU ALL THE TEXT BOX MOVING ON EARNINGS. A DEEP DIVE INTO ALIBABA WITH THE SPINOFF OR AS CLOUDS BUSINESS. THERE IS REAL RISK ON SENTIMENT IN THE NASDAQ. WE ARE 134 POINTS TO THE UPSIDE. MAYBE WE ARE INCHING TOWARDS SOME REST BY ON THE DEBT CEILING CRISIS. THE TWO YEAR YIELD IS UP .05 BASIS POINTS. SOME FED SPEAK SPEAKING TO BAD
TODAY. BITCOIN IS OFF BY .9%. EVERY CURRENCY PAIR IN FX IS DOWN. LET'S MOVE ON TO INDIVIDUAL MOVERS. CISCO IS UP 5.3%. THEY ARE SEEING A 20% DROP IN BUSINESS.
ALIBABA IS ALSO OFF BY 3.8 PERCENT. THEY ARE NOT HARNESSING GROWTH IN THE CLOUD AREA. WE WILL DIG INTO THAT LATER IN THE SHOW. NET FLAX -- NETFLIX IS UP. THEY SHOWED GROWTH AND WENT TO UPFRONTS WHERE THEY PITCH TO ADVERTISER OF THE CONTENT COMING AND PEOPLE LIKED WHAT THEY HEARD. LET'S DIG IN TO THE TOP NEWS AGENDA, TIKTOK. FROM JANUARY 1, BANNED IN
MONTANA. THE LEGAL BATTLE IN THE STATE AND THE SOCIAL MEDIA COMPANY IS ALREADY FACING HEAVY SCRUTINY. JOINING US MORE, BLOOMBERG'S REPORTER. MONTANA HAS SAID INSIGHT INTO A BILL THAT WOULD RESTRICT THE GAP BUT THE HONEST WOULD BE ON TIKTOK AND THE APP STORES.
WHO WOULD BE FINED $10,000 A DAY FOR EVERY DAY THAT TIKTOK IS MADE AVAILABLE. IT'S UNCLEAR HOW THEY ARTICLE YOU TO ENFORCE IT AND THIS BILL WILL FACE A LEGAL BATTLE. CAN STATES TO LIMIT AN APPLE WHILE THE FEDERAL GOVERNMENT HAS BEEN LOOKING AT IT, SOMETHING LIKE THIS IS UNPRECEDENTED. THE COMPANY TOLD US THIS IS A REGULATION ON FREE SPEECH. WE HAVE ALREADY SEEN A GROUP OF
CREATORS BECAUSE THE BILL WAS SIGNED IN THE LATE HOURS OF LAST NIGHT. AN INTERESTING MOVE FOR THOSE WHO ARE PROBATING TIKTOK SAY GOOD JOB BUT CRITICS OF THIS BILL WOULD PROBABLY SAY, WHY IS THIS STATE GETTING INVOLVED IN WHAT SHOULD BE A FEDERAL MOVE? CAROLINE: MAY BE THIS PUTS THE ONUS BACK ON THE FEDERAL MOVE. THE WAY TIKTOK IS TRYING TO ALLEVIATE CONCERNS IS BY SAYING WE ARE WORKING WITH ORACLE, WE ARE MAKING SURE THE DATA ISN'T BEING ACCESSED BY CHINA. WAS TO DEAL WITH ORACLE AT THE MOMENT? ALEX: TIKTOK HAS PUT ORACLE UP AS THIS AMERICAN PARTNER WHO WILL WHILE OFF THE DATA IN THAT PROCESS IS STARTED. BUT WE BROKE THIS MORNING THAT A LARGE CHUNK OF THIS AMBITIOUS WORK OF ORACLE REVIEWING CODE WHICH IS UNPRECEDENTED. THAT WORK IS NOT YET STARTED EVEN THOUGH TIKTOK HAD ALLUDED THAT IT HAD.
ORACLE WILL NOT START THAT WORK UNLESS THERE IS A FINAL AGREEMENT IN PLACE THAT THE GOVERNMENT HAS SIGNED OFF ON. THERE IS A NATIONAL SECURITY REVIEW, AND INTERAGENCY REVIEW THAT HAS STALLED BECAUSE THE JUSTICE DEPARTMENT HAS NOT BEEN HAPPY. WITHOUT THAT MOVING FORWARD, WITHOUT IS SEALED U.S. STAMP PROPOSAL IN STATE OR LEGISLATION THAT FORCES SOMETHING NEW, ORACLE WILL NOT START DOING THAT WORK THAT TIKTOK IS USED TO SAY YOU ARE STUFF IS SAFE BECAUSE WE HAVE AN AMERICAN PARTNER MAKING SURE THERE ARE NO BACKDOORS FOR THE CHINESE GOVERNMENT. CAROLINE: GREAT REPORTING IN THE BREAKING OF THAT NEWS TODAY. MEANWHILE WE WILL DIG A LITTLE DEEPER HERE.
THAT CHOICE IS TRYING TO MAKE THE INTERNET SAFE. YOU ARE ANTI-WHAT WE ARE HEARING FROM THE GOVERNOR IN MONTANA TODAY? >> THIS IS SOMETHING THAT SHOULD SCARE ALL OF US BECAUSE THIS IS WHAT WE DON'T WANT THE GOVERNMENT DO. IT CAN'T DECIDE WHAT APPS WE DOWNLOAD. IMAGINE IF MONTANA SAID YOU COULD NO LONGER GO TO BLOOMBERG.COM? THAT IS WHAT WE ARE SEEING HERE
WITH TIKTOK. AT THE END OF THE DAY, WHAT WE ARE ULTIMATELY GOING TO SEE IS A LEGAL CHALLENGE ON THIS BECAUSE THIS IS A CLEAR VIOLATION OF THE FIRST AMENDMENT. THE GOVERNMENT CAN'T BAN SPEECH. IT'S A VIOLATION OF A BILL OF ATTAINDER. YOU CAN'T CRIMINALIZE AN INDIVIDUAL AND THAT IS WHAT YOU ARE SEEING HERE. THIS IS A SLAMDUNK CASE OF UNCONSTITUTIONALITY BUT IT IS A DANGEROUS PRECEDENT AGAINST FREE SPEECH, FREE EXPRESSION AND FREE ENTERPRISE AND THE FREEST NATION IN THE WORLD.
CAROLINE: REMIND US WHY THEY HAVE BEEN ABLE TO BAN THEM ON GOVERNMENT PHONES? CARL: A BAN ON GOVERNMENT FUNDS, I HAVE NO ISSUE WITH THAT. WE ALL HAVE RULES ON WHAT EMPLOYEES CAN DO ON COMPANY DEVICES. THE GOVERNMENT IS FREE TO DO THAT FOR THEIR OWN FEDERAL EMPLOYEES, STATE, LOCAL EMPLOYEES. AS A TAXPAYER I DON'T SEE WHY GOVERNMENT EMPLOYEES SHOULD HAVE TIKTOK ON THEIR GOVERNMENT DEVICES BECAUSE WHEN I AM PAYING THEIR SALARIES I EXPECT THEM TO BE WORKING, NOT PRODUCING TIKTOK VIDEOS.
THAT IS WHY THE GOVERNMENT CAN DO THAT ON THEIR OWN DEVICES BUT THAT'S DIFFERENT FROM THE GOVERNMENT TELLING ME, YOU AND EVERYONE ELSE OUT THERE WHAT WEBSITES THEY CAN VISIT AND WHAT THEY CAN DOWNLOAD ON THEIR OWN PERSONAL DEVICES. CAROLINE: AS YOU'VE SAID, THIS IS UNCONSTITUTIONAL. TIKTOK'S SAID IT'S AGAINST FREE SPEECH. IT DOES PUT THE ONUS BACK ON THE FEDERAL GOVERNMENT AND WHAT IS CURRENTLY BEING DEBATED BY THE ADMINISTRATION TO ENSURE NATIONAL SECURITY IS OBSERVED OR CURTAILED.
IS THERE ANY WAY THE FEDERAL GOVERNMENT CAN ENACT THIS? CARL: TIKTOK IS A DISTRACTION. A LOT OF LAWMAKERS DON'T WANT A NECESSARY DISCUSSION ON THE U.S. DEPENDENCY ON CHINA, NATIONAL SECURITY, CYBERSECURITY AND PRIVACY BUT THERE IS LEGISLATION WHERE THEY COULD CREATE A NATIONAL STANDARD ON CYBERSECURITY. THEY COULD CREATE A NATIONAL STANDARD ON PRIVACY LAWS. HIS IT WOULD PROTECT ALL AMERICANS WHETHER AN ATTACK IS COMING FROM OUTSIDE THE U.S.
OR FROM WITHIN. SOME OF THE BIGGEST DATA BREACHES CAME FROM INSIDE THE U.S.. WHETHER IT WAS SOLARWINDS IN TEXAS. THE HIKE LAST MONTH. WE NEED TO HARDEN OUR CRITICAL INFRASTRUCTURE REGARDLESS. FOCUSING ON ONE BUSINESS, ONE ENTITY AND NATION DISTRACTS US FROM THE IMPORTANT WORK WE NEED TO DO TO HARDEN THESE INFRASTRUCTURES. CAROLINE: MORE BROADLY WHEN YOU ARE
LOOKING ABROAD AT WHAT IS OCCURRING, WE SEE OTHER COUNTRIES ALSO BANNING ON GOVERNMENT DEVICES. IS THERE ANYWHERE THINKING THEY HAVE TO CURTAIL CERTAIN SOCIAL MEDIA APPS. THIS DISCUSSION DOESN'T JUST MENTION TELEGRAM, CAPCOM. CARL: THERE IS ONE NATION THAT IS IN THE BUSINESS WHAT APPS THEIR CITIZENS CAN USE AND THAT IS CHINA. THEY HAVE THE GREAT FIREWALL, IF THE CCP DOESN'T LIKE WHAT YOU SAY THE CITIZENS CAN'T SEE IT. IT IS THE ANTITHESIS OF WHAT AMERICA STANDS FOR.
I EXPECT THE U.S. TO LEAD THE WAY TO OBJECT DIANE SWONK SPEECH. REJECTS SPEECH ON APPS AND FREE CITIZENS SHOULD BE ABLE TO DECIDE WHAT'S APPROPRIATE FOR THEM. IF I HAVE CONCERNS ABOUT TIKTOK I JUST WON'T USE IT. I WILL USE SOMETHING ELSE. THAT IS THE FREEDOM WE HAVE HERE IN AMERICA AND UNFORTUNATELY IN MONTANA, THAT FREEDOM IS BEING TAKEN AWAY. CAROLINE:
YOUR ASSOCIATION MEMBERS ARE AMAZON, ETC.. DO THEY FEEL REGULATION IS WORKING FOR THEM OR AGAINST THEM? CARL: ACROSS THE BOARD, THEY'RE FIGHTING EVERY DAY FOR FREE EXPRESSION AND ENTERPRISE. WE ARE BEHIND MAKING A NATIONAL STANDARD ON PRIVACY LAW, WHAT DO SECURE AMERICANS NEED? FOR BUSINESSES OUT THERE IT GIVES THEM A ONE STANDARD TO FOLLOW WHICH DRIVE DOWN'S COST OF COMPLIANCE AND MAKES IT EASIER TO SPEND MONEY ON INNOVATION. WE NEED INNOVATION AT THE SPEED OF TECHNOLOGY, NOT GOVERNMENT. CAROLINE: WE SAY THAT AS WE LOOK AT AI AND OTHER THINGS BEING DISCUSSED. GEORGE MEESE AND PROFESSOR OF INTERNET LAW AND THAT CHOICE.
STICKING WITH SOCIAL, WATCHING SHOWS ON META-AND GOOGLE. WE HAVE A KEY DECISION COMING FROM THE SUPREME COURT. IT INSULATES TWITTER, FACEBOOK AND GOOGLE FROM CLAIMS THEY PROVIDED ASSISTANCE TO SPECIFICALLY ISIS STATE TERRORISTS. MORE ON CHINESE TENSIONS. THE RACE AND RISE OF GENERATIVE AI. WE WILL TALK ALL ABOUT IT. SARAH GUO IS WITH US NEXT. THIS IS BLOOMBERG.
>> THIS UNIQUELY AMERICAN ECOSYSTEM IS STILL THE WORLD'S ENVY AND I WANT TO MAKE IT STRONGER. I HAVE NEVER SEEN RAPID GAINS WITH FRONTIER LANGUAGE MODELS. WE LEAD, THE WORLD IS STARTING TO CATCH UP. LET'S CONTINUE. CAROLINE: ERIC SCHMIDT TESTIFYING AT A HOUSE HEARING WHICH WAS FOCUSED ON CHINESE EMBRACE OF AI. WHILE THE U.S. STILL HAS THE EDGE, CHINA IS LIKELY HAVING MORE PEOPLE WORKING ON STRATEGIC AI AND ADVISES THE U.S. SHOULD MODIFY ITS MILITARY.
LET'S TALK MORE BROADLY ABOUT ARTIFICIAL INTELLIGENCE IN WHAT FEELS LIKE A RACE WHEN IT COMES TO GENERATIVE AI. YOU HAVE A LONG HISTORY OF GREATBATCH. I AM INTERESTED AS TO WHERE YOU ARE SEEING THE MOST VALUE BEING ATTRIBUTED TO AI COMPANIES? >> WE ARE EARLY IN THE AI REVOLUTION. IT HAS HUGE POTENTIAL TO CHANGE LIVES AND CAN BE APPLIED TO COMPLEX PROBLEMS IN SCIENCE. SOME OF THE AREAS WE ARE SEEING
THE MOST MEDIA VALUE IS DEMOCRATIZATION OF CREATIVE ABILITIES. LETTING ANYONE GENERATE VIDEO, WRITING. THINK OF COMPANIES THAT ENABLE LAWYERS TO DO THEIR WORK MORE QUICKLY OR DATA SCIENTISTS BE ABLE TO LEVERAGE THEIR WORK FOR A BROADER BUSINESS ENVIRONMENT. CAROLINE: THE MINUTE YOU START TO SAY LEVELING THE PLAYING FIELD, DEMOCRATIZATION FROM IMAGE TO VOICE. THE COPYRIGHT CONCERNS COME TO THE FOREFRONT. HOW DO THE FOUNDERS GET AHEAD OF THE CURVE WHERE REGULATION COULD COME? SARAH: THERE ARE A SERIES OF TRICKY ISSUES THAT COMPANIES PLAYING IN THIS FIELD NEED TO CONSIDER ENACT INCLUDES DISINFORMATION, COPYRIGHT, ABUSE OF THIS TECHNOLOGY BY MALICIOUS ACTORS.
THE SAME AS YOU SEE WITH THE INTERNET. WE EXPECT WHEN WE INVEST IN COMPANIES FOR FOUNDERS TO THINK ABOUT THIS FROM A RESPONSIBLE AI PERSPECTIVE. CAROLINE: AS SOMEONE WHO THOUGHT ABOUT WEB THREE AND THE DEMOCRATIZATION OF FINANCE. SOME PEOPLE ARE TRYING TO COMPARE AND CONTRAST THE WAY AI IS LOOKING TO GET AHEAD OF REGULATION OR ASKING FOR IT SOONER VIS-A-VIS THE CRYPTO SPHERE. IS THAT OUR NAIVETE? AI HAS BEEN BUILDING FOR DECADES. IT JUST FEELS BRAND-NEW BECAUSE WE ARE NOW TOUCHING IT AS A CONSUMER.
ARE WE BEHIND THE CURVE OR ARE WE -- OR ARE WE HAD A BETTER PACE? SARAH: I THINK WE NEED TO BE GOING FASTER ON THE REGULATORY FRONT. THAT DOESN'T MEAN LICENSING TO TRAIN MODELS. IN TERMS OF THE GOVERNANCE QUESTIONS THAT COME ABOUT WHEN YOU HAVE A TECHNOLOGY THAT IS SO GENERAL AND PROGRESSING AT A RAPID SPEED. THAT JUSTIFIES ANXIETY AND IT
SHOULD JUSTIFY INVESTMENT IN THE PRIVATE SECTOR, ACADEMIA AND POLICY TO GET AHEAD OF CHANGES THAT WILL COME IN SOCIETY. WE WILL NEED A STRONG PARTNERSHIP TO REAP THE BENEFIT OF AI AND ACKNOWLEDGE THE CONCERNS. CAROLINE: ARE YOU CONTRIBUTING TO THAT PROCESS? DO YOU FEEL THAT THE PEOPLE IN POWER ARE SEEKING THE RIGHT OPINION FROM PEOPLE WILL IN THIS FIELD? SARAH: THERE HAS BEEN RAPID ENGAGEMENT IN THE PAST FEW MONTHS. THESE ARE COMPLEX ISSUES. MANAGING THE MISUSE OF AI MUST BE ARRIVED AT THROUGH AN INCLUSIVE AND DEMOCRATIC PROCESS. IT'S HARD BECAUSE IT'S ALSO
TECHNICAL. THERE IS AN OPPORTUNITY FOR PRO-TECHNOLOGY POLICYMAKING THAT IS DEFENSIVE, PROTECTING AGAINST SOME OF THE ISSUES WE DISCUSSED BUT GOES ON THE OFFENSIVE. AND THAT YOU JUST SHOWED A CLIP FROM ERIC SCHMIDT. I THINK THIS IS RELATIVE FROM A NATIONAL SECURITY PERSPECTIVE. FROM AN ECONOMIC STABILITY PERSPECTIVE.
IT WOULD BE A REAL SHAME IF SOME OF THE MORE AMBITIOUS APPLICATIONS IN SCIENCE EDUCATION WERE NOT REACHED BECAUSE WE DID NOT GET REGULATION RIGHT. I AM EXCITED ABOUT -- THERE ARE SOME COMPANIES THAT ARE ALREADY CONTRIBUTING TO THAT. WE HAVE A COMPANY CALLED CO. RICE THAT USES AI TO REDUCE THE COST OF RESKILLING FOR WORKERS. CAROLINE: WHERE DO YOU FALL ON THAT VIEWPOINT IF THIS COULD BE BENEFICIAL TO SOCIETY, OR IS THERE A WORRY THAT JOBS WILL BE REDUCED AND PEOPLE WILL NOT BE RESCALED AT THE RATE THEY NEED TO BE? SARAH: IT WOULD BE INTELLECTUALLY DISHONEST FOR A TECHNOLOGIST IN THIS FIELD TO NOT HAVE THAT WORRY. I FOUNDED THE FIRM BECAUSE I BELIEVE THAT AI IS A TECHNOLOGY OF ABUNDANCE BUT A DISTRIBUTION WILL NOT HAPPEN AUTOMATICALLY.
THERE IS REAL ROOM FOR NUANCE POLICYMAKING SO THE TECHNOLOGY IS ONLY AS GOOD AS THE GUARDRAILS WE GIVE IT. THE MAGIC OF THE AMERICAN INNOVATION SYSTEM IS TECHNOLOGY DRIVES WEALTH CREATION. THERE ARE SO MANY THINGS THAT ARE MUCH CHEAPER FOR EVERYDAY AMERICANS THAN THERE WERE 10 YEARS AGO BECAUSE OF ADVANCEMENTS IN PRODUCTIVITY. ONE OF MY HOPES FOR THE AI REVOLUTION IS THE FEELS THAT HAVE BEEN RESISTANT TO DECREASING AND COST LIKE HEALTH AND EDUCATION, WE CAN MAKE INROADS ON. CAROLINE: I WISH I COULD SPEAK TOO MUCH LONGER.
FOUNDER OF CONVICTION, WE THANK YOU FOR YOUR TIME TODAY. THE U.K. IS PLANNING TO CUT THOUSANDS OF JOBS BY 2030. LET'S CHECK IN ON MICRON.
RECEIVING 1.5 BILLION FROM THE JAPANESE GOVERNMENT. IT'S HELPING TO MAKE THE NEXT GENERATION OF CHIPS IN THAT COUNTRY. FROM NEW YORK, THIS IS BLOOMBERG. CAROLINE: SONY IS WEIGHING A SPINOFF OF HIS FINANCIAL SERVICES UNIT. IT WANTS TO FEEL INVESTMENT IN ITS OTHER DIVISIONS. U.K. PRIME MINISTER SAYS THE COUNTRY WILL SEE 22 BILLION OF NEW INVESTMENTS FROM JAPANESE BUSINESSES INCLUDING A BILATERAL SHAPES MEMBERSHIP.
IT SEEKS TO DEEPEN RELATIONSHIPS OVER THREATS FROM CHINA. BT IS PLANNING TO REDUCE ITS WORKFORCE 555,000 PEOPLE. VODAFONE ALSO REDUCING ITS HEADCOUNT.
COMING UP, WE HAVE TO TALK ABOUT ALIBABA PLANNING A SPINOFF OF ITS CLOUD BUSINESS. WE WILL GIVE YOU THE DETAILS NEXT. LET’'S HAVE A LOOK AT TAKE-TWO. THE VIDEO COMPANY HINTED OUT OF RELEASE DATE FOR ITS NEW GRAND THEFT AUTO FRANCHISE. IT IS UP 34% FOR THE YEAR. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. LET'S GET A CHECK ON THE MARKETS. WE ARE SEEING A BUOYANT SIDE
AND BIG TECH. OF 1% IN TERMS OF THE NASDAQ. MAY BE SOME ANXIETY TRAINING OUT WHEN IT COMES TO THE DEBT CEILING DEBACLE THAT SEEMS TO BE SPIRALING BEFORE US. SEEING THE JOBLESS CLAIMS COMING IN STRONG.
THE RESILIENCE OF THE U.S. ECONOMY BUT INFLATIONARY PRESSURE IS ALSO THERE. THE FED WILL HAVE TO CONTINUE TO THINK ABOUT TIGHTENING. TURNING TO INDIVIDUAL NAMES. NVIDIA IS UP 3.8%. THIS COMPANY BENEFITS FROM THE AI ALLURE. SOME OF THEIR NEW CHIPS WILL BE SERVING THE GAMING COMMUNITY.
APPLE UP .9%. THE VIRTUAL REALITY HAS SET TO BE DELIVERED IN JUNE. CISCO IS SEEING LACKLUSTER ORDERS FOR THEIR EQUIPMENT OF LATE. DOWN .6%.
ALIBABA HAS NOT SHOWN STRENGTH. DOWN 4.86%. THE COMPANY IS TRYING TO RESTRUCTURE ITSELF, ESPECIALLY AS CLOUD SERVICES DIVISION. TALK TO ME ABOUT WHAT IS HAPPENING IN TERMS OF THESE EARNINGS. IT LOOKS AS THOUGH CHINA'S REOPENING IS NOT ENOUGH. ISABELLE: THEY THOUGHT THEY WOULD BANK ON THE BIG OPENING BUT IT WAS DISAPPOINTING.
WE HAD A SHRINKING COMMERCE BUSINESS. ALIBABA CLOUD IS THE LARGEST CLOUD PROVIDER IN CHINA. THE BREAD-AND-BUTTER WHICH IS MANAGEMENT FEES. CHINESE CONSUMERS HAVE PREFERRED EATING OUT, GOING ON TRIPS RATHER THAN SHOPPING ONLINE WHICH THEY HAVE BEEN DOING FOR THE PAST TWO YEARS WHEN THEY WERE AT HOME.
CAROLINE: WHAT ABOUT THIS RESTRUCTURING? MANY PEOPLE HOLDING THEIR BREATH READING THESE DETAILS AND WHAT THIS MEANS ABOUT THE CLOUD AND LOGISTIC BUSINESSES. ISABELLE: THIS IS A HISTORIC CHANGE. THIS IS THE SEVENTH WEEK SINCE IT HAS BEEN ANNOUNCED. THEY DID GIVE SOME DETAILS WHICH MADE A LOT OF PEOPLE HAPPY. IT WILL BE AN INDEPENDENT LISTED COMPANY IN THE NEXT YEAR. THEY HAVE THEIR LOGISTICS BUSINESS, THE GROCERY TRAIN IS LOOKING TO LIST.
ALIBABA IS UNIQUE ON ITS OWN BECAUSE IT IS ONE OF THE FEW WHO LOOK AT IT AS THE SUM OF ITS PART. THEY LOOK AT THE SMALL PARTS AND THUS ON THE VALUE THE COMPANY. CAROLINE: AND THERE IS A ROTATING CAST OF CHARACTERS. ISABELLE: WILL THEY HAVE ONE OR WILL THEY BE TREATED AS INDEPENDENT COMPANIES? THEY WILL BE SPLIT INTO SIX BUT THERE WILL BE SOME FAVORITES. SOME BUSINESSES WILL BE BIGGER AND STRONGER THAN THE OTHERS. WE WILL SEE THE WINNERS AND LOSERS DOWN THE LINE. CAROLINE: LET'S STICK WITH E-COMMERCE.
WALMART REPORTED HIS EARNINGS, AFTER ITS DISCOUNT MODEL IS SHARING MARKET SHARE GAINS. COMING UP, MORE THINGS ARTIFICIAL INTELLIGENCE. THE FOUNDER OF LEARNING AI, THE COFOUNDER OF KOSARA. ASSIGN THAT ANTICIPATES GREATER DEMAND FOR ELECTRIC VEHICLES. THIS IS BLOOMBERG. ♪ CAROLINE: A NEW ETF IS HITTING THE MARKET.
THEY WILL BE TRADING UNDER THE NAME CHAT. THEY DERIVE PORTIONS OF THE REVENUE FROM GENERATIVE AI. LET'S STICK TO THAT THEME.
GENERAL PARTNER AT AI FUND AND CHAIRMAN OF LANDING -- LEARNING AI. AND PROFESSOR IN COMPUTER SCIENCE. THE START ON THE AI FUND. IT IS A VENTURE STUDIO, WHICH
BUSINESSES DO YOU WANT TO DISRUPT -- WHEN YOU GO THERE? >> MY FRIENDS USED TO CHALLENGE EACH OTHER, NAME AN INDUSTRY THAT WOULD NOT TRANSFORM? MAYBE CHARACTERIZING, CAN AI CUT HAIR? SHE SAID ANDREW, MOST PEOPLE GO TO AI TO CHECK OUT THEIR HAIRSTYLE. CAROLINE: YOUR HAIR LOOKS VERY NICE TODAY. WHAT'S INTERESTING ABOUT YOUR BACKGROUND, YOU WERE ON GOOGLE BRAIN TEAM AND THE BEGINNINGS OF AI. >> IT WAS GREAT FUND TO TALK ABOUT AI CAPABILITIES. CAROLINE:
HOW DO YOU WORRY ABOUT BIG COMPANIES AND BIG CORPORATE IS HAVING THE ABILITY TO NEGOTIATE AGENCIES THAT REQUIRE LICENSES GOING FORWARD? WILL WE SEE A DEMOCRATIZATION AND HOW AI IS GROWN OR WILL IT BE OWNED BY SOME BIG COMPANY THAT ALREADY EXIST? >> THERE ARE OPPORTUNITIES FOR LARGE COMPANIES AND STARTUPS. COMPANIES THAT HAVE AN INFRASTRUCTURE LAYER INCLUDING THE CLOUDS AND AI TOOL BUILDERS. THERE ARE OPPORTUNITIES THERE AND A MASSIVE OPPORTUNITY IS THE APPLICATION LAYER. I THINK AI IS A GENERAL-PURPOSE TECHNOLOGY.
IT'S NOT AS USEFUL WERE ONE THING. AI ISN'T JUST USED FOR ADS, IS USED FOR MEDICAL DIAGNOSES, AGRICULTURE, MANUFACTURING. HIS TYPICAL FOR EVERY COMPANY FROM MARITIME SHIPPING TO HEALTH CARE SERVICES, IS THE MOST EFFICIENT WAYS TO RECOGNIZE ALL THESE DIVERSE ECONOMIES.
THAT'S WHAT MY VENTURE FIRM DOES. CAROLINE: NO ONE COMPANY CAN OWN ALL OF THOSE FIELDS? WHAT ABOUT COUNTRIES? HOW DOES YOUR EXPERTISE AND STRUCK FOR YOU? ANDREW: WITHOUT SPEAKING TO ANYONE COUNTRY. I THINK MOST COUNTRIES ARE PROBABLY UNDER INVESTING NAI. 10 YEARS AGO WE SAW A BURST IN LEARNING. 10 YEARS LATER, WE HAVE NOT YET FINISHED SORTING ALL OF THE VALUABLE USE CASES WHERE THIS CAN BE APPLIED.
IN THE LAST FEW YEARS WE HAVE GENERATIVE AI WHICH IS A GENERAL-PURPOSE TECHNOLOGY. THE NUMBER OF APPLICATIONS WHICH YOU CAN APPLY AI IS GREATER THAN BEFORE. GLOBALIZATION WILL HAVE A LOT OF OPPORTUNITIES AND FIND MORE CASES OF VALUE. PEOPLE SHOULD INVEST MORE INTO
TECH AND EDUCATION AROUND AI. CAROLINE: YOU WROTE A STRONGLY WORDED REBUTTAL TO THE SIGNATURE AREA SAYING PUT UP HALT ON GENERATIVE AI. YOU SAID ULTIMATELY THEY WERE UNREALISTIC ABOUT THE WAY AI COULD APPEND HUMANITY BUT WE DON'T WANT TO SLOW DOWN INNOVATION. WHERE ARE YOU ON HOW POWERFUL AI CAN BECOME AWARE OF THE REGULATORY LANDSCAPE IS MOVING? ANDREW: I THINK AI DOES HAVE RISK, GENERATING TOXIC SPEECH, JOB DISPLACEMENT. THERE ARE THE OVERHYPED EXISTENTIAL RISKS.
WILL AI WIPE OUT HUMANITY? AI IS IT WORKING THAT WELL. BUT SUDDENLY WE HAVE CINTI AND SUPER INTELLIGENCE THAT HAS TAKEN OVER THE WORLD. TECHNOLOGY DOESN'T WORK LIKE THAT. IT BUILDS GRADUALLY.
HUMANITY CAN'T CREATE ANYTHING POWERFUL THAN ANYONE HUMAN. LASTLY, HUMANITY HAS AN EXISTENTIAL RISK OF A METEOR BLANKETED IT DID WITH THE DINOSAURS. I THINK IA COULD BE MUCH MORE PART OF THE SOLUTION, I WOULD MUCH RATHER MAKE IU GO FASTER TO HELP US SOLVE PROBLEMS FASTER. CAROLINE: ONE PUBLIC MARKET CAPITALIZATION, EDUCATION COMPANIES YOU HAVE LISTED. CHATGPT MAY BE SLOWING THEIR OWN GROWTH.
YOU ARE SOMEONE WHO KNOWS EDUCATION THOROUGHLY. YOU ARE DEVELOPING A WAY TO RESKILL TO MAKE ENGINEERS PROMPT ENGINEERING DEVELOPERS. HOW ARE YOU SEEING THE LANDSCAPE CHANGE FOR TECH NOW? ANDREW: I WANT TO SHARE ONE THING THAT IS REALLY OBVIOUS TO AI INSIDERS BUT NOT WIDELY KNOWN. WITH THE RISE OF AI, IS KNOWN AS A CONSUMER TOOL AND A DEVELOPER TOOL.
WHAT MANY PEOPLE DON'T UNDERSTAND IS THAT THESE TOOLS ARE POWERFUL TO DEVELOP OTHER TOOLS. AI SYSTEMS USED TO TAKE YEARS TO BUILD CAN BE BUILT IN A DAY OR TWO. A COUPLE OF WEEKS AGO, WE LAUNCHED A FREE ONLINE CLASS FOR DEVELOPERS TO TEACH PEOPLE HOW TO USE THIS, THE PROGRAM AI CAPABILITIES BOSTON QUICKLY. WE HAD HALF A MILLION ENROLLMENT. THE FASTEST FREE ONLINE COURSE IN HISTORY. THE MASSIVE WEIGHT OF APPLICATIONS, WE ARE JUST AT THE START OF THAT AND WE DON'T KNOW THE FLOOD OF INNOVATION WE WILL HAVE BECAUSE OF AI. CAROLINE:
FASCINATING, THANK YOU FOR COMING ON. MEANWHILE, COMING OUT. APPLE IS RAISING THE STATES IN THE MIX REALITY MARKET. KEEPING OUR EYE ON RAB. IT IS DEALING WITH HIGH INFLATION, SOUND FAMILIAR? THIS IS BLOOMBERG.
CAROLINE: APPLE'S LONG AWAITED MIXED REALITY HEADSET IS FINALLY BECOMING A REALITY. JUNE 5, WE HOLD OUR BREATH. >> DON'T HOLD IT MUCH LONGER. ON JUNE 5 APPLE WILL BE
INTRODUCING ITS NEXT BIG THING. WE FIRST READ ABOUT THE HEADSET IN 20, THIS WAS SOMETHING APPLE WAS WORKING ON. ALL SORTS OF DETAILS YOU CAN FIND ON BLOOMBERG.COM. OUR LEAD STORY IN BUSINESSWEEK DETAILS THE PRODUCTS DEVELOPMENT. HOW THE INITIAL DREAM WAS STANDALONE VIRTUAL-REALITY GLASSES. NOW WE WILL BE GETTING SOMETHING THAT IS IN BETWEEN A CLASSIC VR HAS SITE -- HEADSET.
A MIXED REALITY HEADSET. IT WILL BE LIGHT AND SLIM WITH AN EXTERNAL BATTERY. AND M TWO PROCESSOR. THIS COULD REPLACE MANY OF THE TASKS DONE ON AN IPHONE, MAC OR IPAD. VIDEOCONFERENCING, COLLABORATION REMOTELY THROUGH APPLICATIONS, GAMING WILL BE A BIG FOCUS.
MEDITATING, WORKING OUT. THIS WILL BE A JAMPACKED PRODUCT. CAROLINE: IT BETTER BE FOR $3000. WE THANK YOU SO MUCH. LISTED IN TO SOMEONE HELPING TO BUILD THESE NEW AUGMENTED VIRTUAL REALITIES. WHETHER IT BE ONLINE LEARNING.
THE CEO OF WAR PIN. EMMA, THE POSSIBILITIES HERE. IT IS A BIG PRICE TAG FOR APPLE'S PRODUCT. META HAS STRUGGLED WITH SALES OF ITS OCULUS AND THE LIKE. WHAT ARE YOU SEEING WITH THE OVERALL DESIRE OF PEOPLE TO INTERACT THIS WAY? >> WE ARE IN THE BEGINNING OF THE NEXT TECHNOLOGICAL REVOLUTION. WE ARE SEEING A LOT OF NEW TECHNOLOGIES DEVELOPING AT THE SAME TIME. AUGMENTED REALITY, VIRTUAL REALITY, ARTIFICIAL INTELLIGENCE. EVERYTHING IS COMING AT THE
SAME TIME CREATING NEW OPPORTUNITIES WE HAVE NOT SEEN BEFORE. APPLE HAS BEEN WORKING ON THIS HEADSET FOR MANY YEARS. EVERYONE IS VERY EXCITED ON WHAT THEY ARE GOING TO RELEASE. WE ARE SEEING FROM OUR POINT OF VIEW, THE BENEFITS FROM THESE TECHNOLOGIES ARE EVEN BIGGER THAN THE INTERNET. CAROLINE: DOES THE PRICE POINT NEED TO BE MORE ACCESSIBLE FOR THIS TO GO MAINSTREAM? >> RIGHT NOW WE ARE SEEING THE REAL RESULTS.
IF YOU'RE USING VIRTUAL REALITY FOR TRAINING, YOU CAN LOWER YOUR COST AND HAVE A RETENTION OF 70% AND YOU LEARN FOUR TIMES FASTER THAN ANY OTHER TRAINING METHOD OUT THERE. FOR THIS TO BECOME MORE MAINSTREAM WE NEED A HEADSET THAT IS FASHIONABLE, A LITTLE CHEAPER AND CONTENT IS KING. IT SHOULD ADD VALUE TO US. IT HAS TO MAKE SENSE FOR US TO PUT ON A HEADSET INSTEAD OF USING PHONES. CAROLINE: MANY WOULD FEEL, UNTIL YOU HAVE TRIED IT, YOU CAN'T KNOCK IT. BUT THE TRYING OF IT WILL BE THE HEART THING.
HOW DO YOU MARKET THESE PRODUCTS? HOW CAN YOU MAKE SURE EVERYONE SEES THE BENEFITS? >> CONTENT IS KING. WE NEED EXPERIENCES THAT SHOWCASE WHAT THESE TECHNOLOGIES DO. INSTEAD OF BEING ON THE INTERNET ARE LOOKING AT THE INTERNET WE WILL BE INSIDE THE INTERNET.
ENGAGING IN A WHOLE NEW WAYS. WHEN WE CAN SEE APPS THAT SHOW HOW THESE TECHNOLOGIES BRING TO OUR LIFE. GAMING AND SOCIAL MEDIA, THOSE AREAS ARE EXCITING. BUT THE GREATEST ADVANTAGES WILL BE IN TRAINING, EDUCATION, JUST LIKE THE FIRST INTERNET REVOLUTIONIZED THESE AREAS.
CAROLINE: THERE IS A LOT OF HANDWRINGING OVER THAT. WORRYING ABOUT THE REGULATION OF AI. WORRYING ABOUT PEOPLE LIVING TOO MUCH IN THE VIRTUAL REALITY. HOW DO YOU THINK ABOUT ALL OF
THIS? >> I THINK WE HAVE ALMOST LOST AN ENTIRE GENERATION. WE MISS THE CHANCE TO EDUCATE PEOPLE ON HOW TO COMMUNICATE WITH EACH OTHER. WE HAVE A REAL OPPORTUNITY WHERE WE ARE LEAVING THE 2D WORLD AND ENTERING A MORE NATURAL, 3D WORLD. WHEN ENTERING THESE WORLDS WE WILL SEE HOW WE SPEND OUR TIME AND HOW WE CAN USE THIS TO FEEL BETTER AND CONNECT WITH EACH OTHER. YOU ARE 3.75 PERCENT TIMES MORE TO TECHNOLOGY THAT YOU CAN EMBRACE. CAROLINE: WE HEARD ALL THE COMPANIES YOU
ARE WORKING WITH. IN AN ECONOMIC ENVIRONMENT, OUR COMPANIES IS WILLING TO VENTURE INTO THIS FIELD? EMMA: WE NEED TO SOLVE THE PROBLEMS WE ARE FACING AT THE MOMENT. BY THE YEAR 2020 FIVE, 50% OF EVERYONE ON THE PLANET -- COMPANIES ARE LOOKING AT NEW WAYS TO SOLVE PROBLEMS WE ARE FACING. IF YOU ARE COMPANY WITHIN PRODUCTION LINE RETAIL OR THOSE TYPES OF AREAS YOU NEED TO LOOK AT A METAVERSE STRATEGY. CAROLINE: THANK YOU FOR SPEAKING WITH US. CEO OF WAR PIN. YOU DON'T WANT TO FORGET ABOUT
OUR PODCASTS. YOU CAN CATCH UP WITH US LIVE. THIS IS BLOOMBERG.
2023-05-20 23:21
