'Bloomberg Technology' Full Show 05/31/2023)
ANNOUNCER: FROM THE HEART OF WHERE INNOVATION, MONEY AND OUR COLLIDE, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE AT BLOOMBERG HEADQUARTERS IN NEW YORK. ED: I AM ED LUDLOW IN SAN FRANCISCO. CAROLINE: NVIDIA TRADES IN THE RED FOR THE FIRST TIME SINCE ITS BLOWOUT EARNINGS REPORT. ED:
WE ARE TALKING A ISC BIDEN ADMINISTRATION DISCUSSES HOW TO REGULATE GENERATED AI LIKE CHATGPT. CAROLINE: SO MUCH MORE THROUGHOUT THE SHOW INCLUDING WHERE PUBLIC MARKETS ARE CURRENTLY TRADING. WE ARE SEEING A DISMAL FIELD TO THE NASDAQ TODAY. WE ARE DROPPING AROUND 0.7%. NERVOUSNESS THAT MAY BE SOME ECONOMIC DATA IN THE U.S.
IS TOO STRONG. JOLTS DATA, BASICALLY JAVA EARNINGS LOOKING MUCH STRONGER THAN PEOPLE ANTICIPATED. THE BUYING WE SEE IN TWO-YEAR YIELD IS DIPPING A BIT, AROUND EVERY GO IN TERMS OF THE DEBT CEILING AND WHETHER WE GET SOME AGREEMENT. WE WILL HEAR FROM -- WE WERE STEERING FROM KAILEY LEINZ AT THE END OF THE PREVIOUS PROGRAM ON THAT. YES, PERHAPS THEY ARE ASSIGNED TO MUCH ON THE POSITIVE SIDE. IN CHINA AND EUROPE, THE PMI MANUFACTURING DATA LOOKING WEAK. HE SELLOFF AGAIN IN TERMS OF
U.S. ASSISTED CHINESE STOCKS. I AM LOOKING AT THE WORLD OF CRYPTO. THE END THE MONTH OF MAY DOWN MORE THAN 8%. THIS IS THE WORST SINCE NOVEMBER WHEN FTX COLLAPSE.
DIGGING INTO SOME MICRO NAMES WE ARE SEEING TODAY. ED: THE NERVOUSNESS TODAY CERTAINLY COMING FROM EARNINGS. HEWLETT-PACKARD, ENTERPRISE, THE MAKING OF OFFICE INFRASTRUCTURE DOWN 7%. IT IS COMING IN BELOW EXPECTATIONS. HP INC., NOT TO BE CONFUSED
WITH THE MAKING OF LAPTOPS, MISSING SALES IN THE SECOND QUARTER. THIS IS GETTING CONCERN AROUND DEMAND FOR PC BUT OUR COLLEAGUES SAY THERE WAS EVIDENCE THE MARKETS AND PCS ARE BOTTOMING OUT BASED ON WHAT HP INC. HAD TO SAY. TESLA DOWN 2%, ELON MUSK OVER IN CHINA. ELON MUSK WAS PHOTOGRAPHED HAVING DINNER AT A RESTAURANT IN CHINA. HE EATS AT RESTROOMS LIKE THE
REST OF US. NOT SURE THAT HAS MUCH WEIGHT ON THE STOP. ACTION IN THE TWO SPACES INTERESTING. INTEL IS MAKING SIGNIFICANT
GAINS, NOW UP 4%. HAVE BEEN HIGHER EARLIER. IT WILL BE COMING UP IN THE UPPER HALF OF ITS PREVIOUSLY GUIDED PROJECTION WHICH IS GIVING INVESTORS CONFIDENCE. NVIDIA IS DOWN 3.7 PERCENT. WE ARE COMING OFF OF RECORD CLOSES TUESDAY EVENING AND 24 HOURS AFTER NVIDIA TOUCHED A $1 TRILLION MARKET CAP FOR THE FIRST TIME. CAROLINE:
WE HAVE TO THINK ABOUT PROFIT-TAKING MORE BROADLY BECAUSE A LOT OF THE RALLY WE HAVE SEEN THIS YEAR HAS BEEN TOUCHED -- HAS BEEN FROM VERY FEW NAMES. PARTNER AND PORTFOLIO MANAGER OVER AT ADVISORS CAPITAL MANAGEMENT, WELCOME TO THE SHOW. I READ YOUR NOTES WITH REAL INTEREST. WE WERE STILL TRYING TO BUDDY THROUGH THE MACRO. TALK TO US HOW ABOUT HOW IMPORTANT A CERTAIN FEW NAMES OF TECH STOCKS HAVE BEEN TO THE RALLY SO FAR THIS YEAR. >> WE GET A LOT OF INQUIRIES FROM OUR CLIENTS ABOUT HOW MUCH THE MARKET HAS GONE UP AND IS THIS A GOOD TIME TO GET INTO EQUITIES YOU BREAK IT DOWN, THERE ARE TWO STOCK MARKETS. THERE IS THE SUPER SEVEN WITH THE BIG TECH COMPANIES LIKE MICROSOFT, APPLE, AMAZON AND OBVIOUSLY NVIDIA.
ON FRIDAY'S CLOSE, THERE WERE UP 67% YEAR TO DATE WHEREAS THE REST OF THE MARKET WAS UP 3%. THAT TIES INTO TWO NARRATIVES. ONE IS THE GROWTH OPPORTUNITY RELATED TO AI AND THE REST OF THE MARKET IS ALL ABOUT RECESSION RISK, INTEREST RATE RISK AND INFLATION RISK AS WE ARE SEEING MATERIALIZED TODAY. CAROLINE: YES, NVIDIA IS NOW BELOW THE $1 TRILLION BUT STILL A SURGE. ARE WE PUTTING TOO MANY X IN ONE BASKET. ARE YOU ON THE CATHIE WOOD'S SIDE OF THE EQUATION THAT THERE ARE OTHER COMPANIES THAT WILL START LOOKING AT BETTER VALUATIONS OUT THERE? >> IT IS HARD TO TELL HOW MUCH WE ARE GOING TO GET OUT OF AI OVER THE LONG TERM. THE COMPANIES THAT ARE ENABLING
AI, WHETHER IT IS THROUGH THE CHIPS LIKE NVIDIA PROVIDES, OR A SOFTWARE AND DEPLOYMENT LIKE AMAZON WEB SERVICES, GOOGLE AND MICROSOFT ARE ENABLING. WHAT INVESTORS RECOGNIZE IS EVEN THOUGH WE DON'T KNOW ALL THE DETAILS, AI AND IT SPREAD ACROSS THE ECONOMY WILL PROVIDE YEARS OF GROWTH. THAT IS A STEP CHANGE IN WHAT WE EXPECT THE COMPANIES TO BE ABLE TO DO JUST SOME MONTHS AGO. THAT IS WARRANTED. IT IS NOT TO SAY THERE ARE NOT OPPORTUNITIES OUT THERE AND INVESTORS CAN LOOK FOR THOSE BUT THESE ARE SOLIDLY IN THE MIDDLE. IT IS A LESS RISKY WAY TO PLAY THE AI MOVE OVER TIME AND THEN YOU CAN LOOK INTO COMPANIES ADOPTING AI IN INDUSTRIALS AND HEALTH CARE. THERE ARE PLENTY OF OPPORTUNITIES OUT THERE. ED:
CATHIE WOOD JOINED OUR PROGRAM IN ASIA OVERNIGHT AND HAS MOVED TO FOCUS -- FROM FOCUSING ON NVIDIA AND HAS LED TO THE NEXT BIG BETS. >> WE ARE REALLY HAPPY THAT INVESTORS WHO OWN BENCHMARKS LIKE THE NASDAQ AND QQQ STILL OWN NVIDIA. THEY OWN IT IN SOME OF OUR PERFORMERS BUT WE ARE ONTO THE NEXT THING. NVIDIA IS A HARDWARE STOP. SURE IT HAS SOME SOFTWARE, BUT THE HISTORY OF HARDWARE AND SOFTWARE IS THE BIGGER BENEFICIARY OVER TIME IS GOING TO BE SOFTWARE. ED: I THINK YOU NOTES INVESTORS ARE LOOKING TO MOVE MONEY INTO SOFTWARE WHICH CAN MEAN A BROAD RANGE OF THINGS. CLOUD, SASS, ENTERPRISE.
WHAT AREAS OF THAT SECTOR INTEREST YOU? >> THEY ARE GOING TO BE MANY. THE ADOPTION OF AI INTO SOFTWARE TOOLS COST MULTIPLE MARKETS IS SIGNIFICANT. WE OWN A COMPANY CALLED SWAMP -- SWUNK. THEY ARE A BIG DATA ANALYTICS COMPANY AND AI WILL PLAY AN IMPORTANT ROLE THERE. FROM NVIDIA'S PERSPECTIVE, THE TIE IN OF SOFTWARE IS CRITICAL TO WHAT THEY ARE ENABLING THEIR CUSTOMERS TO DO. IT IS ALSO WHY THERE GROSS MARGINS ARE GOING UP.
IT IS WHY WE SEE HARDWARE AND SOFTWARE TO BE MORE AND MORE TIED OVER TIME WHICH IS WHY NVIDIA IS AN INTERESTING OPPORTUNITY. NOT TO SAY ONCE A PARTICULARLY TAKE A LITTLE BIT OF PROFITS, WHICH WE DID SOMETIME AFTER THEY WERE REPORTED, BUT GOING FORWARD, THERE WERE BE PLENTY -- WILL BE PLENTY OF OPPORTUNITIES IN HARDWARE AS WELL. ED: THE POINT I MAKE IS THIS OBSESSION WITH A POINT GROUP OF U.S. NAMES, THE MEGA CAP TECH. IF YOU LOOK AT THE BOND MARKET, WE THINK ABOUT THE ECONOMY AND GLOBAL INFLATION, EVERYONE HAS AN EYE ON CHINA. CAROLINE: ELON MUSK IS THERE AT THE MOMENT.
JOANNE, HOW MUCH, WHEN YOU ARE LOOKING AT THE MACRO AND WHAT IS HAPPENING IN THE U.S. AND EVERYONE IS SEEING THE SEVEN WINNERS AND THE REST LEAVING BEHIND WHEN WE THINK ABOUT WHERE INFLATION IS AT, HOW MUCH DO YOU THINK ABOUT CHINA AND EUROPE BEING OPPORTUNITIES WHERE THINGS NEED TO STAY WELL AWAY FROM AT THE MOMENT? >> THERE IS ALWAYS A ROLE FOR INTERNATIONAL EXPOSURE IN PORTFOLIOS. WE HAVE SEPARATED SOME STRATEGIES. CHINA HAS BECOME MORE OF A
CONCERN. INVESTORS WERE OVERLY OPTIMISTIC ABOUT HOW MUCH THE REOPENING WOULD DRIVE DEMAND IN THE NEAR TERM, WHICH IS NOT TO SAY THAT CHINA WILL NOT BE A VERY IMPORTANT SOURCE OF TUMOR DEMAND. THEY HAVE MOVED A BIG CHUNK OF THEIR POPULATION INTO MIDDLE-CLASS. OVERALL, THERE ARE SOME ATTRACTIVE VALUATIONS. OUR APPROACH IS TO LOOK FOR
INVESTING IN COMPANIES INSTEAD OF COUNTRIES AS A WHOLE. BACK TO THE HARDWARE SIDE, THE ADVANTAGE WE ARE SEEING THAT ED MENTIONED, THE FOCUS ON U.S. COMES FROM A DEEP MOAT OUR COMPANIES HAVE CREATED AROUND THIS TECHNOLOGY. ONE OF THE KEY THINGS WITH SEMICONDUCTORS WAS DIGGING INTO THE KEY ADVANTAGE LIKE NVIDIA AND GOOGLE TEAMING UP WITH BROADCOM TO DEVELOP AN ALTERNATIVE BIG TRIP TO DO THE AI TRAINING COMPUTATIONS.
THIS SHOWS THE MODE IS DEEP AND SUPPORTS THEIR MARGINS. INVESTORS ARE NOT WRONG TO RECOGNIZE THE SOURCE OF A LOT OF THE GAINS ARE IN THE WEST COMPANIES. ED: WE LEARNED THAT ONE MORNING, A MARKET DOES NOT MAKE. IT IS INTERESTING THERE IS MORE EMPHASIS RIGHT NOW ON CURRENT RISKS, RACE, AND RECESSION. A MUCH WILL THIS IMPACT THE TECHNOLOGY SECTOR GOING FORWARD FOR THIS MOMENT? >> A GREAT THOUGHT. WE HAVE TWO STOCK MARKETS RIGHT
NOW. WE HAVE THE INVESTOR FOCUS ON WHICH COMPANIES OUT THERE CAP ARE FIVE YEARS OF GROWTH, WITH OR WITHOUT -- OUT THERE CAN PROVIDE YEARS OF GROWTH, WITH OR WITHOUT RECESSION. THEN YOU HAVE THE REST OF THE MARKET. THAT IS THE MARKET WHERE THEY
WILL BE FOCUSED ON THE RECESSION RISK AND RIGHTLY SO. JOLTS DATA THIS MORNING SUGGESTED THE FED WILL HAVE TO RAISE RATES AGAIN A SET OF PAUSING. IT THROWS INTO DOUBT THE FED WILL BE ABLE TO CUT RATES TOWARD THE END OF THE AIR. THIS MEANS INVESTORS ARE WORRIED THAT THIS WILL TRIGGER RECESSION. THE FED WANTS TO REPORT -- TO AVOID THAT. WE ARE SEEING THIS IN THE PRICE OF STOCKS AND THE REST OF THE MARKET WHERE SECULAR GROWTH IS NOT AS BIG A DRIVER.
BUT INVESTORS SHOULD LOOK BEYOND THIS. EQUITY DOES A GOOD JOB OVER THE LONG-TERM. IT IS AN OPPORTUNITY POTENTIALLY TO GET SOME COMPANIES IN THE REST OF THE MARKETS AND BUILD THOSE POSITIONS NOW WHILE RISKS ARE HIGH. AND IF YOU ARE A LONG-TERM INVESTOR, YOU CAN LOOK BEYOND THAT. CAROLINE: AND TAKE PROFITS IN THE SEVEN NAMES THAT HAVE DRIVEN US THUS FAR? >> WE HAVE DONE SOME OF THAT. YOU'RE ACTUALLY NOW SLIGHTLY UNDERWEIGHT ON NVIDIA. HAVE BEEN OVERWEIGHT FOR THE
LAST YEAR. IT IS IMPORTANT TO MAKE SURE THE RISK YOU HAVE OF EXPOSURE IS BALANCE. IT IS NOT IN FRONT OF THE LEVEL OF RISK WE SEE ACROSS THE GLOBAL ECONOMY. ED:
JOANNE FEENEY, PARLER -- PARTNER AND PORTFOLIO MANAGER OF ADVISORS CAPITAL NETWORK. COMING UP, FINTECH START UP BRETT SEEING REVENUE SEARCH FOLLOWING THE BANKING TURMOIL IN THE U.S.. WE WILL DISCUSS MORE, NEXT. THIS IS BLOOMBERG.
ED: CREDIT CARD START UP BREX HAS SEEN A SURGE IN USAGE OF HIS PRODUCTS AMID RECENT BANK TURMOIL. ON TRACK TO REACH 500 MILLION DOLLARS IN REOCCURRING REVENUE IN THE NEXT 12 MONTHS IF ITS CURRENT PACE OF GROWTH CONTINUES. READING US IS THE COFOUNDER -- JOINING US IS THE COFOUNDER HENRIQUE DUBUGRAS. THERE IS A BUILD IN
FORWARD-LOOKING REVENUE, RIGHT? >> THANK YOU SO MUCH FOR HAVING ME HERE. WE WERE ANNOUNCING THERE IS TWO PRODUCTS ACROSS OVER $100 MILLION IN REVENUE. IT IS OUR POWER PRODUCT THAT REPLACES CONCURRING FOR TRAVEL AND EXPENSE, AND OUR BUSINESS ACCOUNTS THAT CAN DO OPERATIONAL PAYMENTS AND DEPOSIT CHECKS AND THE TRADITIONAL BANKING ACTIVITY FOR OUR BUSINESS IN ONE PLACE. BOTH CROSSED OVER 100 MILLION NOW WE HAVE THREE PRODUCTS THAT HAVE CROSSED 100 MILLION DOLLARS IN REVENUE WHICH IS SOMETHING WE ARE EXCITED ABOUT. ED: SO $100 MILLION IN JEWELRY
OCCURRING REVENUE. BLOOMBERG SOURCES ARE SAYING COMPANY WIDE AND/OR REOCCURRING REVENUE ARE ON TRACK FOR AROUND $500 MILLION. WHAT MAKES BREX SO ATTRACTIVE TO STARTUPS SINCE THE FALLOUT OF SVB? >> THERE ARE TWO MAIN GROWTH DRIVERS.
THE FIRST IS OUR ENTERPRISE SEGMENT OF THE BUSINESS. IN POWER, OUR SOLUTION HAS BEEN SERVING CUSTOMERS LIKE DOORDASH, INDEED, LEMONADE ETC. GO STARTUPS, MIDSIZE COMPANIES OF THE ENTERPRISE HAVE BEEN -- BOTH STARTUPS AND MIDSIZE COMPANIES OF THE ENTERPRISE HAVE BEEN ATTRACTED TO OUR PRODUCTS. IT IS EXTREMELY GLOBAL AND WORKS ALL OVER THE WORLD AND FOR ALL YOUR SUBS AREAS ALL OVER THE WORLD. THAT HAS BEEN GROWING A LOT.
THE SECOND IS OUR BANKING PRODUCT. THE REGIONAL BANKING CRISIS HAS DEFINITELY HAD -- WE DID NOT KNOW IF IT WOULD BE A NET POSITIVE OR NET NEGATIVE FOR BREX. NOW WE KNOW IT WAS POSITIVE AND CUSTOMERS CAME AND STAYED WITH STROVE A LOT OF GROWTH. ED: I THINK YOU AND I WILL NEVER FORGET THE FRIDAY WHEN THE SVB STORY UNFOLDED. WE DID A SPECIAL PROGRAM AND WE LEARNED SO MUCH ABOUT HOW STARTUPS MANAGE THEIR FINANCES AND THE TYPE OF FUNDING THEY SEEK BEYOND JUST RAISING CAPITAL FROM VC'S. CAROLINE: WHAT IS INTERESTING IS SILICON
VALLEY BANK WAS SO INTERTWINED WITH THE START UP SECTOR BECAUSE NOT ONLY WAS IT OFFERING LENDING IT OFFERING WAYS TO VENTURE DEBT. THIS IS AN AREA YOU HAVE BEEN WORKING IN. HOW MUCH ARE YOU SAYING STARTUPS GETTING INTO CASH BURN INTO BEATING FURTHER MONEY TO DEPLOY BUT DID NOT WANT TO RAISE EQUITY? IS VENTURE DEBT STILL A BIG PART OF YOUR BUSINESS? >> I WOULD SAY VENTURE DEBT IS A SMALL PART. IT IS DEFINITELY AN EXPERIMENT. WE TRY TO DO IT IN SMALL AMOUNTS BUT IT IS NOT MERELY WHY CUSTOMERS COME TO US. THE MAIN REASON WHY OUR BUSINESS ACCOUNT CUSTOMERS COME TO US IS BECAUSE OF THE MAIN OPERATIONS.
RUNNING PAYROLLS, WIRES, CHECKS AND DAY-TO-DAY BANKING. THEY KEEP UP WITH A LOT OF THEIR FUNDS IN SOME BIG BANKS THAT KEEP ONE MONTH TO FOUR MONTHS OF MONEY WITH US TO BE THEIR DAY-TO-DAY PARTNER THAT UNDERSTANDS THEM. CAROLINE: WHERE ARE THESE COMPANIES COMING FROM? YOU ARE FOCUSED ON ALLOWING THESE COMPANIES TO GLOBAL AND TRAVEL AND GROW WAS ARE THEY LARGELY U.S. COMPANIES? >> A LOT ARE GLOBAL COMPANIES. OVER 50% OF THE COMPANIES WE SERVE HAVE GLOBAL EMPLOYEES. ALL OF THEM HAVE U.S. EMPLOYEES.
WE ONLY SERVE YOU IF YOU HAVE SOME SORT OF U.S. OPERATION FOR A BUNCH OF REGULATORY REASONS BUT A LOT LAW ARE GLOBAL COMPANIES. WE SERVE FROM STARTUPS TO CUSTOMERS THAT WORK FOR AN SVB TO LARGER ENTERPRISES LIKE DOORDASH. CAROLINE: I HAVE A SNEAKING SUSPICION THERE IS A FEW MORE AI PLAYERS BEING BORN AT THE MOMENT . EVERYDAY WE ARE DISCUSSING THE EXUBERANCE AROUND THAT. ED: IT REFLECTS THE CONVERSATION WE HAD 24 HOURS AGO.
IT IS WHAT AI CAN DO FOR EXISTING FINTECH PLAYERS. HOW IS AI GOING TO BOOSTER OFFERING? WHERE ARE YOU INVESTING TO JUMP ON THE BANDWAGON, SO TO SPEAK? >> I THINK AI WILL COMPLETELY TRANSFORM OUR INDUSTRY. THERE ARE A COUPLE DIFFERENT PLAYERS. YOU CAN THINK ABOUT IT UNDER THE EMPLOYER EXPERIENCE. HOW CAN YOU MAKE IT EASIER FOR EMPLOYERS TO DO THEIR EXPERIENCE -- THEIR EXPENSES OR NOT HAVE TO DO THEM AT ALL? WE ALSO ANNOUNCED EARLIER THIS YEAR CFO FOR EVERYONE. IF ANYONE HAS QUESTIONS, YOU CAN ASK THE CHATBOTS AND IT WILL RESPOND TO YOU.
ALL THE WAY TO ACCOUNTING AND OPERATIONS. I THINK IT WILL COMPLETELY REVOLUTIONIZE AND TRANSFORM OUR INDUSTRY. WE ARE INVESTING VERY HEAVILY INTO THE DEVELOPMENT OF NEW CAPABILITIES. OVER THE NEXT FEW MONTHS, YOU WILL SEE A LOT OF VERY INNOVATIVE THINGS COMING OUT. ED: WHEN DOES BREX GO PUBLIC? >> WE DON'T HAVE A TIMELINE YET. WE ARE NOT I GUESS BEING A
PUBLIC COMPANY IN ANY SHAPE OR FORM. BEING SAID, I WOULD LOVE TO BE A LOW VOLATILITY PUBLIC COMPANY. WE WILL PROBABLY WAIT FOR THAT TO HAPPEN BEFORE WE GO PUBLIC.
OTHER THINGS TO REMEMBER IS WE ARE A SIX-YEAR-OLD COMPANY. WE NOT HAVE PRESSURE TO GO PUBLIC YET. WE ARE QUITE YOUNG FOR A STARTUP. CAROLINE: WE UNDERSTAND YOU DO NOT HAVE ANY PRESSURE TO RAISE VENTURE CAPITAL YOURSELF. I WANT TO KNOW WHERE YOU ARE IN
TERMS OF THE FOCUS OF BEING PROFITABLE AND POSITIVE AND ALL THESE GOOD THINGS? ARE YOU STILL TRYING TO HIRE BECAUSE HE SEEMED TO BE TALKING ABOUT DEVELOPING AND LEADING INTO AI -- BECAUSE YOU SEEM TO BE TALKING ABOUT DEVELOPING INTO AI? HOW ARE YOU COVERING THOSE COSTS? >> WE ARE STILL INVESTED A LOT. THE PRODUCT IS HAVING SO MUCH TRACTION THAT IT IS HIGHER FOR US TO INVEST IN SALES AND MARKETING TO REQUIRE -- TO ACQUIRE MORE CUSTOMERS, FASTER. THE SECOND AREA IS AI. I BELIEVE THIS WILL BE
TRANSFORMATIONAL ON US. IF YOU ARE A COMPANY AND YOU ARE NOT WILLING TO INVEST IN AI, YOU ARE PROBABLY MISSING THE NEXT BIG SHIFT. BUT WE DO HAVE A GOOD BUSINESS MODEL AND I THINK WE HAVE A PLAN TO BE POSITIVE WITHOUT RAISING ANY MORE MONEY. CAROLINE: GREAT TO HAVE TIME WITH THEM AGAIN. HENRIQUE DUBUGRAS IS THE BREX COFOUNDER AND CEO. ELON MUSK MAKING ROUNDS IN BEIJING. MORE ON WHO HE MET WITH AND
PROJECTS HE IS MULLING NEXT. WE HAVE OUR EARNINGS COMING AND DRIPPING THROUGH THE SALESFORCE. INVESTORS WILL BE WATCHING THAT CLOSELY AFTER THE BELL. THE COMPANY WILL UPDATE US ON ITS OWN COST-CUTTING CAMPAIGN. IT WILL PROVIDE US WITH LONG
RUN REVENUE GOALS IT SET ITSELF. THIS IS BLOOMBERG. ♪ CAROLINE: TIME FOR TALKING TECH. GET THE IPHONE MAKER FOXCONN TECHNOLOGY SAYS IT EXPECTS TO MORE THAN DOUBLE ITS REVENUE THE SECOND HALF OF THE YEAR THANKS TO SALES OF ARTIFICIAL INTELLIGENCE AND THE SERVERS. IT IS PART OF A MOVE TO GENERATE REVENUE FROM OTHER FIELDS, ELECTRIC CARS AND AI.
HON HAI ALSO WORKING WITH NVIDIA. BAIDU IS LOOKING TO BEEF UP CHINA. IT SET ASIDE ROUGHLY $140 MILLION FOR STARTUPS TO SPECIALIZE IN GENERATIVE AI. THEY WILL USE THEIR EARNING BOT TO BUILD THEIR OWN LAWS LANGUAGE MODEL.
THIS WILL DETERMINE WHO GETS THE SEED FUNDING. DAY TWO OF ELON MUSK MEETING WITH -- TRIP IN CHINA AND HE HAS ALREADY MET WITH MORE GOVERNMENT OFFICIALS. HE STOPPED BY THE MINISTRY OF COMMERCE AND ALSO MET WITH THE HEAD OF THE BATTERY GIANT SEA ATL, SPARKING RUMORS OF COLLABORATION. HE MET WITH'S FOREIGN MINISTER -- ON TUESDAY, HE MET WITH THE FOREIGN MINISTER. ANOTHER CEO.
WE HAVE HEARD FROM MERCEDES AND GM AND JP DIAMOND -- JAMIE DIMON . ED: IN THE STATEMENT BY THE CHINESE GOVERNMENT, ELON MUSK IS QUOTED AS SAYING HE IS AGAINST A DECOUPLING FROM CHINA AND THEY WILL CONTINUE TO INVEST. IT IS AN INTERESTING SITUATION. IF THE PERCENT OF TESLA'S OUTPUT WAS IN CHINA.
THE CHINESE GOVERNMENT GAVE TESLA THE FREEDOM TO OPERATE THERE AS A U.S. COMPANY WHICH IS RARE. CAROLINE: INTERESTING THE POTENTIAL REMEMBERING AROUND THE BIG BATTERY MAKER. THAT IS OF COURSE THE BIG PART OF CHINA TRYING TO HAVE SUPPLY CHAIN IN THE U.S.
RATHER THAN DEPENDING ON CHINESE MAKERS. ED: BEFORE LICENSING CATL, THERE WAS A FALLOUT FROM THE REPUBLICAN PARTY. THAT RELATIONSHIP IS CLOSELY WATCHED. CAROLINE: I'M SURE WE'LL GET MORE PHOTOS. ED: COMING UP, DOZENS OF INDUSTRY LEADERS CALLING FOR GLOBAL ATTENTION TO THE POSSIBLE THREATS OF EXTINCTION FROM AI.
DAN HENDRYCKS, CENTER FOR AI SAFETY JOINS US NEXT. THIS IS BLOOMBERG. ED: WELCOME BACK TO "BLOOMBERG TECHNOLOGY".
I AM ED LUDLOW SAN FRANCISCO. CAROLINE: AND CAROLINE HYDE IN NEW YORK. WE ARE SLIGHTLY LOWER ON THE NASDAQ AT THE MOMENT, OFF BY 0.8%.
ALSO, WE ARE RUNNING TOO HOT IN THE U.S. AND THE FEDERAL RESERVE WILL STILL HAVE TO TAME THE GROWTH. THE JOLTS DATA IS SHOWING PEOPLE ARE STILL HIRING.
KEVIN GROWTH COMING FROM CHINA IN TERMS OF PMI'S AND MANUFACTURING DATA. U.S. -- EUROPE ALSO DOWN. LET'S MOVE ALONG AND HAVE A LOOK AT INDIVIDUAL MOVERS. WE STILL HAVE EARNINGS AND REAL NEWS BUT WE ALSO HAVE THE FIRST FALL IN NVIDIA SINCE ITS ROARING EARNINGS WE SAW LAST WEEK. YOU'RE OFF BY AROUND 5% AFTER IT HIT THE $1 TRILLION MARK. WE ARE ALSO SEEING INTEL WITH AN UPTICK. IT REALLY DISCUSSING HOW THEY MAY BE WILL MANAGE TO BE AT THE TOP END OF THE RANGE WHEN IT COMES TO FORWARD-LOOKING GUIDANCE.
HEWLETT-PACKARD ENTERPRISE DISAPPOINTS, DOWN BY 7%. WE ARE STILL AT A VERY DIFFICULT MACROECONOMIC ENVIRONMENT. WE HAVE TO REMEMBER THIS. ED: AI IS STILL A BIG FACTOR IN THE MARKETS. A MEETING THIS WEEK AT THE U.S.-EU TRADE TECHNOLOGY COUNCIL. GATHERING IN SWEDEN WHERE THEY
PLAN TO SUE CHECKED GENERATIVE AI TO ADDITIONAL RULES. >> THIS IS BIGGER THAN EUROPE. THE U.S. IS IMPORTANT BUT THIS IS BIGGER THAN THE U.S. IF THE TWO OF US TAKE THE LEAD, WE CAN PUSH SOMETHING THAT WILL MAKE US MUCH MORE COMFORTABLE WITH THE FACT GENERATIVE AI IS NOW IN THE WORLD AND DEVELOPING AT AMAZING. ED: BIDEN ADMINISTRATION OFFICIALS HAVE BEEN DIVIDED OVER HOW AGGRESSIVELY NEW AI TOOLS TO BE REGULATED, A DISSIDENCE THAT HAS LEFT THE U.S. WITHOUT A COHERENT RESPONSE TO
THE EU'S. LET'S BRING IN ANNA AND JATIN TO IT DOWN. I THOUGHT YOU WERE IN A PLACE WHERE THE U.S. AND EU ARE ON THE SAME PAGE.
YOU REGULATE THE TOOL RATHER THAN THE UNDERLYING TECHNOLOGY. WHERE HAVE WE GONE WRONG? >> WE WERE KIND OF ON THE SAME PLACE. THE LAST MEETING CAME UP WITH A ROADMAP THE AGREED ON THE U.S.-BASED APPROACH, FOCUSING ON THE USE OF THE TECHNOLOGY,
RATHER THAN THE DEVELOPMENT OF THE TECHNOLOGY. AI USE FOR CRITICAL LEVELS OF INFRASTRUCTURE WOULD BE RELATED TO CRITICAL USE FOR -- HIGHER USE. CHATGPT SHOWED US GENERATIVE AI PRODUCTS, SITTING THAT IS NOT HIGH-RISK, CAN BE COME VERY IMPORTANT WHEN IT IS USED BY HUNDREDS OF PEOPLE PER MONTH FROM EVERYTHING FROM HELPING WITH HOMEWORK TO MORNING VARIOUS PURPOSES. THAT IS WHAT POLICYMAKERS ARE GRAPPLING WITH.
HOW TO TREAT GENERATIVE AI PRODUCTS AND CLASSIFY THE RISK OF THOSE. CAROLINE: AT THE MOMENTS, DOES IT EVEN MATTER IF THE U.S., FOR EXAMPLE, SINCE THE ADMINISTRATION IS DIVIDED -- TO ME, IT SEEMS THE EU WILL BE THE FIRST TO REACT. >> THAT IS WHY THIS IS IMPORTANT BECAUSE U.S. COMPANIES WILL HAVE TO COMPLY THEY WANT TO OPERATE IN EUROPE. MUCH LIKE THE GDPR DID FOR PRIVACY, THE AI ACT WILL SET A FACTOR FOR COMPLIANCE, SO THIS IS WHAT U.S.
COMPANIES ARE WORRIED ABOUT. AS THEY DEVELOP BOTTLES THAT UNDERPIN THIS GENERATIVE AI TECHNOLOGY -- DEVELOP MODELS THAT UNDERPIN THIS GENERATIVE AI TECHNOLOGY. THESE COMPANIES ARE LOOKING FOR A CHAMPION IN THE BIDEN ADMINISTRATION TO GO TO THE EU AND SAY, WE DO NOT THINK THIS POLICY WILL WORK THE WAY IT IS IMAGINED WHEN IT IS IMPLEMENTED EVENTUALLY. THE REASON IT MATTERS THE BIDEN ADMINISTRATION IS DIVIDED IS THAT THESE COMPANIES DO NOT HAVE THE CHAMPION AND DO NOT HAVE ANYONE GOING TO THE MULTILATERAL DISCUSSIONS AND EXPRESSING THEIR POINT OF VIEW. ED: THERE WAS A TIME WHEN WE THOUGHT VICE PRESIDENT KAMALA HARRIS WAS THE CHAMPION. SHE HOSTED THAT MEETING WITH
SATYA NADELLA. THE ADMINISTRATION MADE NOISES ABOUT WANTING TO DO SOMETHING. GOING BACK TO ONE POINT, THEY MADE POLICY. WE HAVE NOT HEARD ANY ARGUMENTS OF EITHER SIDE FOR WHERE TO FOCUS REGULATION FROM THE WHITE HOUSE.
>> I WILL GIVE THE ADMINISTRATION CREDIT FOR PUTTING FORWARD VERY WELL RECEIVED FRAMEWORKS. WE HAVE THE RISK MANAGEMENT FRAMEWORK FROM THE NATIONAL INSTITUTES OF CENTERS OF TECHNOLOGY AND CIVIL SOCIETY PUT OUT A WELL-THOUGHT-OUT DOCUMENT. YOU HAVE THE WHITE HOUSE PUTTING FORWARD THEIR BILL OF RIGHTS FOR PEOPLE WHO USE AI PRODUCTS, BUT WE DO NOT HAVE BINDING POLICY IN THE U.S. BECAUSE THE U.S.
CONGRESS IS JUST NOW STARTING TO HOLD THEIR INITIAL HEARINGS TO EDUCATE LAWMAKERS ON WHAT AI EVEN IS. WHILE THE BIDEN ADMINISTRATION HAS DONE A LOT OF WORK TO SET NONBINDING GUIDELINES, ACTUALLY BINDING REGULATION IS GOING TO COME FROM EUROPE ONCE AGAIN. CAROLINE: ANNA EDGERTON, WE THANK YOU FOR GIVING US THE GLOBAL PERCEPTION OF AI RISKS. THAT'S DIVE INTO THE PERCEPTIONS IN THE U.S. BECAUSE THERE HAS BEEN ANOTHER OPEN LETTER SIGNED BY INDUSTRY LEADERS, WARNING OF THE RISKS OF EXTINCTION DUE TO ARTIFICIAL INTELLIGENCE.
IT WAS PUBLISHED BY THE CENTER FOR AI SAFETY WHICH HAS PERMISSION TO REDUCE SOCIETAL SCALE RISKS FROM ARTIFICIAL INTELLIGENCE. JOINING US NOW AT A DEEPER DIVE ON THIS AND TO EXPLAIN THEIR THINKING IS THE EXECUTIVE DIRECTOR DAN HENDRYCKS. I AM INTERESTED IN HOW THIS FIRST STARTED. THIS WHOLE MISSION STATEMENT HE
PUT OUT ABOUT MITIGATING THE RISKS IN LINE WITH POTENTIALLY A NUCLEAR WAR OR, INDEED, A GLOBAL PANDEMIC, HOW DID YOU FIRST HAVE CONVERSATIONS OF DEEP MIND? DID THEY COME TO YOU OR DID YOU GO TO THEM? DAN: WE CREATED THE LETTER LARGELY BECAUSE I KNEW THAT MANY PEOPLE HAD CONCERNS THAT AI COULD LEAD TO EXTINCTION IN THAT WE SHOULD NOT JUST BE TREATING IT LIKE EVERY OTHER TECH ISSUE BUT AS A GLOBAL PRIORITY. WE CREATED THIS LETTER TO SO SINGLY CONVEY THE -- TO SUCCINCTLY CONVEY THIS AREA OF CONCERN. THERE WERE SOME SURPRISES IN OPENAI SIGNED IT AND GOOGLE DEEP MIND SIGNED IT AS WELL AS MANY SCIENTISTS THAT BUILDS THE CURRENT WAVE ARTIFICIAL INTELLIGENCE. CAROLINE: WHAT IS INTERESTING IS I AM TRYING TO UNDERSTAND HOW YOU WERE BORN AS A CENTER FOR AI SAFETY ECHO WHERE YOU FUNDED BY ANY OF THESE BUSINESSES? WHAT IS THE ULTIMATE WAY IN WHICH YOU CONTINUE TO DELIVER INTO YOUR RESEARCH -- CONTINUE AND DO YOUR RESEARCH? DAN: WE ARE JUST TRYING TO REDUCE THE RISKS FROM AI. AS A GRADUATE STUDENT AT BERKELEY, I HAVE BEEN RESEARCHING SAFETY FOR A LONG TIME, SO THIS HAS BEEN A CONCERN I HAVE HAD FOR MANY YEARS. NOW FINALLY, THE AI TECHNOLOGIES ARE GETTING TO THE POINT WHERE IT IS BECOMING MORE OBVIOUS TO THE SCIENTIFIC COMMUNITY THAT THIS IS A LARGE CONCERN. A LETTER LIKE THIS COULD NOT
HAVE EXISTED FIVE MONTHS AGO BUT GIVEN THE RAPID DEVELOPMENTS, A LOT OF PEOPLE ARE CHANGING THEIR DEMISE OF HOW SEVERE THIS CAN BE. ED: I WANT TO GO BACK TO CAROLINE'S PREVIOUS QUESTION. HAVE YOU TAKEN MONEY FROM ANY AI EXECUTIVES THAT WERE SIGNATORIES TO THE PREVIOUS LETTER? BASICALLY KEY NAMES IN THE FIELD OF AI? DAN: I WOULD HAVE TO CHECK IF WE ARE HAVING ANY FUNDING FROM ANY EMPLOYEES THAT ARE ALSO CONCERNED ABOUT SAFETY. THE AI COMMUNITY IS LARGE. 90 PLUS PERCENT OF OUR FUNDING IS FROM INDEPENDENT PHILANTHROPY. ED:
ONE QUESTION THAT AROSE QUICKLY WHEN YOU PUT OUT THE STATEMENT 24 HOURS AGO IS THE RATIONALE OR MOTIVATIONS BEHIND THESE SIGNATORIES. WHY ARE THEY DOING THIS? I GET THERE IS A LONG-TERM, BROAD CONCERN ABOUT THE RISK FROM AI BUT WHY DO YOU THE NAMES , WHO WANT THE FIELD TO ADVANCE, SIGNED THE LETTER YOU ORGANIZED? DAN: MANY OF THEM WERE ON THE BOATS OF WE NEED TO MOVE AS QUICKLY AS POSSIBLE AND DEVELOPING AI WOULD BE A GENERALLY GOOD THING. BUT A LIFE SCIENTIST WHO SIGNED US HAVE RECENTLY CHANGED THEIR. JEFF HINTON HAS HELPED CREATE ARTIFICIAL INTELLIGENCE.
BUT IN RECENT MONTHS, THERE IS SUBSTANTIALLY MORE CONCERNED ABOUT THEIR ROAD BEHAVIOR AND THAT THESE AIS COULD LEAD TO HUMAN EXTINCTION AS THEY GET MORE ADVANCE. FOR THAT REASON, I THINK IT IS JUST BECAUSE PEOPLE ARE TRYING TO SEE THIS MOVING EXTREMELY QUICKLY AND WE DO NOT UNDERSTAND HOW THESE TECHNOLOGIES WORK, IT IS DIFFICULT TO SEAR THEM -- STEER THEM. THEY CAN BE MISUSED AND LEAD TO CATASTROPHIC EVENTS. ED: IN RESPONSE TO YOUR LETTER, THERE WERE THOSE THAT NOTE PRESENT AND MUCH MORE NEAR-TERM BASIC RISKS. HAVE A LISTEN. >> I PERSONALLY SEE IT AS A MAGIC TRICK AND MISDIRECTION. I CARE VERY STRONGLY ABOUT, FOR
EXAMPLE, DATA CONSENT. FOR EXAMPLE, DISCLOSING DATA SOURCES AND TRANSPARENCY AND DOCUMENTATION, AND FOCUSING -- AND INSTEAD OF FOCUSING ON THAT, WE ARE BEING DIRECTED TOWARD UNSOLVABLE RISKS. ED: ARE WE PAYING ENOUGH ATTENTION TO MORE NEAR-TERM AND IMMEDIATE RISKS FROM AI? DAN: I SHOULD HOPE THE RISK OF EXTINCTION IS NOT UNSOLVABLE OR ELSE WE ARE IN TROUBLE. IT IS IMPORTANT AS A SOCIETY TO MANAGE MULTIPLE RISKS. I THINK WE CAN CERTAINLY DO IT. I ALSO THINK THE RISKS THAT CURRENTLY AFFECT US CAN TAKE ON MORE EXTREME FORMS LATER ON.
FOR INSTANCE, IF THE PEOPLE DEVELOPING THE AI TECHNOLOGIES HAVE DECISIVE CONTROL, THIS GIVES THEM EXTREMELY HIGH-POWER. POWER AND INEQUALITY WITH RESPECT TO AI TO GET OUT OF CONTROL WHERE A FEW PEOPLE ARE CALLING THE SHOTS IN SOCIETY. IT IS IMPORTANT THAT ANY COMPETENT FORM OF RISK MANAGEMENT WILL ADDRESS CURRENT ONGOING HARMS AND FUTURE RISKS. I THINK WE NEED A COMPLEMENTARY APPROACH. CAROLINE:
THE OUTCOME FROM THIS? YOU CERTAINLY STIRRED A LOT OF INTEREST IN PEOPLE WHO ARE PERHAPS ALIGNING THEMSELVES THINKING THIS IS TOO MUCH OR THAT WE NEED TO SIGN IT -- IN LIGHT ON THIS. HOW DO YOU THINK WE TAKE ON THESE RISKS? IS IT REGULATION? IS IT SELF-REGULATION? WHAT DO YOU THINK THE OUTCOME WILL BE? DAN HENDRYCKS DAN: --DAN: SELF-REGULATION IS A YOUTHFUL STARTS BUT WOULD NOT TRUST ME LIKE A PANDEMIC JUST TO TECHNOLOGIES OR THE SCIENTISTS. WE WOULD NOT SAY SAVE THE ARMS RACE. WE WANT TO MAKE SURE THE PUBLIC
IS AWARE THAT MANY OF THE AI SCIENTISTS, WHICH WE HAVE FROM ALL THE TOP UNIVERSITIES AND MANY OF THE PEOPLE WHO CREATED IT ARE CONCERNED THIS COULD LEAD TO EXTENSION -- EXTINCTION. HOPEFULLY WE CAN GET CONVERSATIONS STARTED, RECOGNIZING THERE ARE SEVERE EFFECTS ON THE HORIZON LIKE POTENTIAL EXTINCTION. WE NEED TO WORK TOWARD COOPERATING DOMESTICALLY BUT ALSO INTERACTING DOMESTICALLY SO WE ARE NOT CAUGHT IN AN AI ARMS RACE BETWEEN DIFFERENT COUNTRIES. NUCLEAR ARMS RACE BROUGHT US TO THE BRINK OF CATASTROPHE AND WE DO NOT WANT ANOTHER ONE WERE REBUILT EXTREMELY POWERFUL TECHNOLOGIES THAT COULD POTENTIALLY DESTROY US ALL AND WE KEEP STOCKPILING THEM.
THAT WAS NOT A GOOD OUTCOME FOR HUMANITY AND COULD HAVE GONE WORSE. HOPEFULLY WE CAN COOPERATE STARTING TODAY. CAROLINE: HAVE YOU SEEN DECENT SELF-REGULATION ON SOME OF THE NEAR-TERM IMMEDIATE SOCIETAL DAMAGE WE HAVE SEEN? MANY HAVE REFERENCED THE BIAS ALREADY BAKED INTO THE DATA IT IS BEING BUILT UPON AND HE WORRIES THE WRONG PEOPLE ARE BEING STOPPED BY POLICE OR THE WORRIES THE WRONG AND -- MIS INFORMATION IS ALREADY CIRCULATING. HAVE YOU SEEN THIS TACKLED?
DAN: IF WE CANNOT ADDRESS THE CURRENT ARRESTS, I DO NOT HAVE MUCH HOPE FOR US ADDRESSING THESE LARGER RISKS. THERE IS A BIT OF A MIX IN WHETHER COMPANIES HAVE BEEN SUCCESSFUL AT MAKING THEIR AI TECHNOLOGY SAVE. THERE IS SOME NOTABLE FAILURES LIKE WITH INITIAL ROLLOUTS THREATENING USERS, BUT SOME OTHER TECHNOLOGIES HAVE BEEN USEFUL IN -- AND RELATIVELY RELIABLE IN MITIGATING VICE -- BIAS. I AM CONCERNED THAT SINCE AI COMPANIES ARE COMPETING WITH EACH OTHER AND THEY ARE LOCKED IN AN ARMS RACE WITH EACH OTHER. THERE WILL NOT BE ENOUGH TIME
AND THEY WILL DE-PRIORITIZED DEVELOPMENT OVER SAFETY. IF THEY DO NOT PRIORITIZE SAFETY AS QUICKLY AS POSSIBLE, WE WILL NOT BE ABLE TO BRING DOWN THE RISKS. CAROLINE: IS THERE A RISK THAT WE START TO STIFLE OUT THE NEW COMPETITORS AND SMALLER PLAYERS AND ACADEMICS WHO ARE TALKING TO WITHIN LABS RATHER THAN LARGE PLAYERS LIKE BEING OVER OPENAI? -- BING OR OPENAI? DAN: IF WE ARE CONCERNED ABOUT ACADEMICS, THAT WOULD LARGELY VIEW THE GOVERNMENT TO TAKE CARE OF THAT. I THINK WE CAN TARGET THE CATASTROPHIC RISKS FOR MARK -- MODELS AT CERTAIN LEVEL OF CAPABILITY.
YOU WILL BASICALLY HAVE TO PROCEED WITH THESE NEGOTIATIONS. I AM LARGELY PUSHING FOR US INITIATING THIS PROCESS AND TRYING TO HAVE BROADER SOCIETAL COOPERATION INCLUDING INTERNATIONAL COOPERATION ON THESE ISSUES. ED: HOW DOES THE PUBLIC RECONCILE THAT THE SIGNATORIES TO YOUR POSITION -- PETITION AND INITIATIVE WERE THE LEADERS IN THE FIELD OF AI? THE AI EVANGELIST FOR WANT OF A BETTER EXPRESSION -- EVANGELISTS , FOR WANT OF A BETTER EXPRESSION, WHO ARE NOW THE DOOMERS. DAN: THIS IS A NECESSARY PART OF EVERY INDUSTRY.
WE START SHIFTING TO A MORE RISK-AVERSE REGIME WERE TO KNOLOGY AFFECT SOCIETY ON A LONGER SCALE -- LARGER SCALE. NOW PEOPLE ARE USING THESE SO WE HAVE TO BE MORE CAREFUL WITH POTENTIAL OUTCOMES. IT IS GETTING CLOSER TO HUMAN INTELLIGENCE. TWO YEARS AGO, THEY WERE NOT INTELLIGENT AT ALL. BUT IN THE NEXT TWO YEARS, IT IS CONCEIVABLE THAT IN MANY DOMAINS WE HAVE AI WHO IS INTELLIGENT OR BETTER. THIS IS THE MAIN REASON WHY WE
SHIPPED THE UNDERLYING CHANGE IN TONE. BECAUSE THE ARMS RACE IS MOVING QUICKLY, PEOPLE THINK WE NEED TO RETHINK OUR PRIORITIES. ED: CENTER FOR AI SAFETY EXECUTIVE, DAN HENDRYCKS, THANK YOU FOR YOUR TIME. ELIZABETH HOLMES REPORTED TO TEXAS YESTERDAY TO START HER PRISON SENTENCE. SHE AND HER FORMER BUSINESS PARTNER MUST TOGETHER PAY 450 $2 MILLION IN RESTITUTION TO INVESTORS -- $452 MILLION IN RESTITUTION TO INVESTORS. CAROLINE:
WE HAVE MORE TO TALK ABOUT. ON WALL STREET, HOW HEADPHONES ARE TIPPING THEIR TOES INTO AI TO HANDLE THE BORING WORK. NEXT. THIS IS BLOOMBERG. CAROLINE: WALL STREET IS ALREADY FILLED WITH COMPUTER WIZARDS BUT IT IS NOT STOPPING HEDGE FUNDS FROM USING THE POWERS OF CHATGPT FOR THE BASICS.
JUNIOR HEDGE FUND ANALYST, YOU DON'T HAVE TO DO THE BASICS. SONALI: I DON'T NORMALLY LIKE TO USE PERSONAL EXAMPLES BUT I GOT MY DEGREE IN QUANTUM FINANCE. DOWN AT YOU WHY YOU, THEY TAKE STUDENTS AND HAVE THEM RUN THROUGH THIS DATA AND PUT IT THROUGH CODE AND MARKET SCENARIOS. WHAT THEY SHOW IS THE CODE MODELS DO NOT ALWAYS WORK. THE POINT HERE IS ONE, SOMETIMES DATA DOES NOT WORK. SOMETIMES IT IS WRONG.
OTHER TIMES, THE MARKET IS UNPREDICTABLE WHICH IS WHY THERE IS LIMITATIONS TO HOW CHATGPT CAN. THERE ARE THINGS THAT MAKE THIS RENDITION OF QUANTITATIVE FINANCE DIFFERENT THAN BEFORE. THAT IS NATURAL LANGUAGE PROCESSING AND GENERATIVE AI THAT WILL MAKE IT EASIER TO READ COMPANY REPORTS, RESEARCH REPORTS, NEWS FILINGS AND COMPANY TRANSCRIPTS TO HOPEFULLY MAKE IT EASIER TO PART THROUGH INVESTING SIGNS, DOWN TO A FED MINUTE TO GET SIGNALS ON HOW DEBTORS ARE HAWKISH SOMETHING IS. CAROLINE: IT IS ABOUT PRODUCTIVITY AND WORKFLOW VERSUS HAVING AN EDGE WHEN IT COMES TO INVESTING. SONALI BASAK, SHORT, SWEET AND TO THE POINT. ED: CANADIAN VENTURE CAPITAL INVESTORS HAVE ABOUT $10 BILLION OF DRY POWDER TO SPEND ON CASH STARTUPS.
THEY WILL NEED IT SOON. IT ALSO SAYS MANY BC FUNDING COMPANIES FACE THE RISK OF RUNNING OUT OF ONION IN THE NEXT 12 MONTHS. DESPITE EFFORTS TO SLOW DOWN THE RATE OF CASH BURN. EARLY DOORDASH BACKUP PAIR VC IS CLOSE TO THE BACKUP OF EARLY STAGE INVESTING -- CLOSED FOR EARLY STAGE INVESTING. EXECUTIVES INCLUDING LIFE SCIENCES HEALTH CARE CONSUMER CLIENTS AND ARTIFICIAL INTELLIGENCE. THE FIRM RAISE $160 MILLION FOR ITS LAST FUND IN 2019. PLUS, A JAPANESE COMPANY PLANS
TO DOUBLE IT SUBSIDIES FOR SPACE IN A NEW FIELD AND ARTIFICIAL INTELLIGENCE STARTUPS. IT WILL START ON THE MOVE AS SOON AS EARLY JUNE THIS IS BLOOMBERG. CAROLINE: WHAT IS GOING FINAL? IT IS THE FINALES OF TED LASSO AND SUCCESSION.
CLOSE TO 3 MILLION PEOPLE WATCHED THE FINALE OF SUCCESSION AND ITS STREAMING ON HBO MAX. MEANWHILE, IT IS THE TOP TRENDING TOPIC ON GOOGLE TRENDS. TED LASSO. IT HAS BEEN A BOON TO APPLETV,
BREAKING INTO THE NEW STREAMING IN THE LAST SIX WEEKS FOR THE THIRD AND LAST SEASON BUT MEANWHILE BRITTS ARE NOT WATCHING IT MUCH. ED: APPLE DOES NOT DISCLOSE NUMBERS BUT IT IS ALL PEOPLE ARE TALKING ABOUT. 3 MILLION DOES NOT SEEM LIKE MUCH IN A COUNTRY OF 330 MILLION PEOPLE BUT WE ARE BOTH BIG FANS. THAT DOES IT FOR "BLOOMBERG TECHNOLOGY".
SO MUCH TO RECAP IT -- IN WHAT HAS BEEN A SHORT WEEK. FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG.
2023-06-02 19:15
