Appeals Court Allows Possible TikTok Ban | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY." WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." TIKTOK STILL FACES MOST ON OUSTING IN THE UNITED DATES AFTER FDC APPEALS COURT UPHOLDS THE BAN LAW. MORE VOICES IN THE NEW ADMINISTRATION AS DONALD TRUMP SELECTS DAVID SACHS TO SERVE AS HIS AI AND CRYPTO CZAR. HP REACHES A RECORD HIGH AFTER
POSTING EARNINGS. WE TALK AI SERVICE WITH THE COMPANY'S CEO. FIRST WE CHECK IN ON THE MARKETS AND OTHER RECORD HIGHS. WE HAVE THE NASDAQ AT A NEW RECORD. UP .7%. THE MACRO PICTURE BEING THAT OF A RESILIENT JOBS MARKET. THE MARKET ALMOST PRICING IN SOME SORT OF RATE FOR LATER THIS MONTH COMING FROM THE FED.
SO WE SEE STOCKS MOVE HIGHER. THE S&P AT A NEW RECORD TOO. IN TERMS OF POINTS CONTRIBUTORS YOU ARE LOOKING AT BROADCOM DOING WELL. ALSO MET AS WELL. -- META AS WELL. THAT IS BECAUSE OF TIKTOK'S PARENT COMPANY STILL FACING THAT MAN IN THE UNITED STATES. CASH BAN IN THE UNITED STATES.
THE FEDERAL APPEALS COURT JUST CAME OUT WITH THIS DECISION. ALEXANDRA LEVINE JOINS US NOW, WHO COVERS ALL THINGS SOCIAL EVENT YOU ARE NOT SURPRISED ULTIMATELY BY THIS RULING? >> THIS IS WHAT WE EXPECTED BUT IT IS SURPRISING IN THE SENSE THAT WE HAVE NEVER SEEN THIS HAPPEN IN THE UNITED STATES BEFORE. IF THIS BAND COMES TO PASS -- BAN COMES TO PASS IT IS NOT JUST ANY SOCIAL MEDIA APP.
IT'S IS A SOCIAL MEDIA APP USED BY MORE THAN HALF THE AMERICAN POPULATION. CAROLINE: AND BACKED BY VERY POWERFUL PEOPLE, POTENTIALLY CLOSE TO THE NEXT ADMINISTRATION. VENTURE CAPITALISTS. P/E FUNDS. WHAT IS INTERESTING IS WHAT EFFECT THIS IS HAVING ON THE COMPANY ITSELF. ALEXANDRA: INSIDE THE COMPANY THE SENTIMENT HAS BEEN FASCINATING. THERE HAS BEEN A LOT OF FOLKS WHO HAD BEEN MORE SCARED THE FIRST TIME THIS HAPPENED WITH TRUMP'S FIRST ADMINISTRATION, WHEN TRUMP WAS THE ONE WHO ORIGINALLY TRIED TO BAN IT IN 2020. WHEN ALL OF THIS HAS BEEN
TRANSPIRING YOU HAVE A LOT OF PEOPLE WHO ARE LIKE, WE HAVE SEEN THIS MOVIE BEFORE. BUT I THINK THE COURT UPHOLDING THE LEGITIMACY OF THE LAW TODAY COULD CHANGE PEOPLE'S TUNE. CAROLINE: JUST FOR OUR AUDIENCE WE HAVE A LITTLE LIVE FIRE DRILL GOING ON HERE IN LEXINGTON AVENUE, NEW YORK. BEAR WITH US WHEN WE HAVE SOME OF THESE PARTICULAR ANNOUNCEMENTS COMING THROUGH. ALESSANDRA VIVIAN -- ALEXANDRA
LEVINE, WE THANK YOU. LET'S GO TO MATTHEW FOR MORE, WHO I'M PLEASED TO SAY IS NOT SET IN NEW YORK. FROM A LEGAL PERSPECTIVE HEAR WHAT WAS THE RULING FROM THE JUDGES? ULTIMATELY THEY THINK NATIONAL SECURITY OUT TRUMPS -- TO PUN THE PUN -- >> THIS LOOKS LIKE A SWEEPING LOSS FOR TIKTOK, WHERE THE COURT COMPLETELY REJECTED ITS FIRST AMENDED ARGUMENT AND SAID THAT NATIONAL SECURITY CONCERNS TRUMP ALL OF THOSE COMPLAINTS. THE COURT SAID THAT THIS FAILS
BOTH INTERMEDIATE SCRUTINY AND EVEN STRICT SCRUTINY, WHICH ALMOST NEVER WORKS. BUT THE COURT SAID, LOOK, THE GOVERNMENT'S INTEREST IN NATIONAL SECURITY TRUMPS THE FIRST AMENDMENT CONCERNS, NO MATTER WHAT THE TEST IS. THIS IS A TOUGH LOSS FOR TIKTOK AND I THINK IT IS GOING TO BE DIFFICULT FOR TIKTOK TO OVERTURN IT. CAROLINE:
YOU HAD A 70% CHANCE THAT TIKTOK LOSE ON THIS PARTICULAR D.C. COURT. THERE -- THEY'RE ONLY ENDING HERE IS TO GO TO THE SUPREME COURT. WHAT ARE YOUR PROBABILITIES ON THAT, OR IS IT TOO EARLY TO TELL? MATTHEW: I THINK THAT IS GOING TO BE THE OPTION. IN THEORY THEY COULD ASK FOR A REHEARING AT THIS APPEALS COURT THIS DECISION LEAVES LITTLE HOPE OF THAT. I THINK YOU ARE RIGHT THAT THE
NEXT MOVE IS AN EMERGENCY PETITION TO THE SUPREME COURT, TO SAY, JUSTICES, IT PAWS ON THIS JANUARY 19 DAY. THIS IS AN IMPORTANT FIRST AMENDMENT CASE. AS ALEXANDER SAID THIS IS NOVEL IN AMERICAN LAW. TRYING TO ENTICE THE JUSTICES TO AT LEAST LOOK AT IT FOR THE DATE COMES UP, THE THING IS IT IS DIFFICULT TO DO THAT. IT TAKES FIVE JUSTICES TO VOTE IN SUPPORT OF THAT.
WITH THIS SWEEPING DECISION TWO OF THE THREE JUDGES WHO WHO WROTE THIS OUR REPUBLICAN-APPOINTED. ONE IS PRESIDENT TRUMP-APPOINTED. THIS SUPREME COURT TENDS TO AGREE WITH THOSE JUDGES. I THINK THERE IS A REAL POSSIBILITY THE SUPREME COURT LOOKS AT THIS AND SAYS, THE D.C. COURT GOT IT RIGHT. YOU MAY NOT EVEN NEED TO TAKE THIS UP.
THERE IS A CHANCE THEY HAD PAUSE IN THE SUPREME COURT HAS TO RULE ON IT. BUT THERE IS A BETTER CHANCE THE SUPREME COURT SAYS, NO, THEY GOT IT RIGHT, THIS CASE IS OVER. CAROLINE: WHAT THEN LEGALLY SPEAKING DOES TIKTOK DO? WHAT DOES BYTEDANCE DO? MATTHEW: THE QUESTION THEN IS, WILL IT DO A DIVESTITURE? LAW GIVES IT A PATH AROUND AN EFFECTIVE BAN BY SELLING THE SERVICE TO SOMEONE WHO IS NOT LOCATED IN CHINA. THE PROBLEM IS THAT CHINA HAS SAID IT WILL NOT APPROVE A SALE OF THE ALGORITHM.
SO TIKTOK IS IN A BIT OF A TOUGH SPOT IN THAT SENSE. THE OTHER BIG QUESTION IS, WHAT WILL PRESIDENT TRUMP DO WITH THIS? WILL HE ENFORCE THIS LAW? THE ENFORCEMENT MECHANISM IS THE DEPARTMENT OF JUSTICE AND TRUMP COULD DIRECT HIS DEPARTMENT OF JUSTICE TO SAY, WORRY ABOUT ENFORCING THAT ONE. THAT WOULD BE HIGHLY UNUSUAL AND THE COMPANIES THAT HOST TIKTOK WOULD BE TAKING ENORMOUS RISK HE WOULD NOT CHANGE HIS MIND. BUT IT IS A POSSIBILITY.
CAROLINE: YOU DO NOT RULE OUT ANYTHING FOR THE FUTURE. I'M INTERESTED WHETHER YOU KNOW FROM BEHIND THE SCENES ULTIMATELY WANT A COULD LOOK LIKE IF THEY DID DIVEST, LEGALLY SPEAKING. HOW THAT MIGHT HAVE TO ULTIMATELY LOOK? MATTHEW: I THINK THE BIGGEST QUESTION AROUND THE DIVESTITURE IS WHETHER TIKTOK WOULD LOOK AT A TRANSACTION THAT DOES NOT INVOLVE THE ALGORITHM. AND OF CHINA WILL NOT APPROVE A SALE OF THE ALGORITHM MAY BE ARE LOOKING AT SELLING JUST THE USERS AND PLATFORM, BUT WITHOUT THE SECRET SAUCE THAT MAKES IT WORK. I THINK YOU COULD SEE THE COMPANY EXPLORING THOSE SORTS OF ALTERNATIVES IN THE NEAR TERM. CAROLINE:
WE WILL AWAIT TO SEE WHETHER IT DOES GET PUSHED ONTO THE SUPREME COURT. CAN YOU GIVE US A FEELING OF TIMING? JANUARY 19 FEELS INCREDIBLY CLOSE NOW. IT IS ONE DAY BEFORE THE NEW ADMINISTRATION IS SWORN IN. HERE WE GO WITH THE FIRE ALARMS
AGAIN. WHAT ARE YOU THINKING IN TERMS OF AN EXTENSION BEYOND JANUARY 19? MATTHEW: WHAT I EXPECT WE WILL SEE HERE, MAYBE TODAY, A BE IN A MATTER OF DAYS, IS THIS EMERGENCY PETITION TO THE SUPREME COURT ASKING THE JUSTICES TO HIT PAUSE ON THAT JANUARY 19 DATE. I THINK THIS SUPREME COURT WILL TAKE THAT PETITION, ASK FOR BRIEFS ON THAT LEADING INTO JANUARY, AND THEN THE SUPREME COURT IS EITHER GOING TO SAY YES OR NO. PROBABLY IN MID-JANUARY. ABOUT WHETHER IT WILL GRANT
THIS CASE AND HIT PAUSE ON THAT JANUARY 19 DAY. THAT IS WHERE THE LEGAL ACTION IS LIKELY TO BE IN THIS, PUSHING THE JUSTICES TO HIT PAUSE ON THAT JANUARY 19 DAY. AS I SAID, I THINK THE JUSTICES MIGHT SAY, NO, WE DON'T NEED TO STEP IN HERE, LET'S LET THE LAW TAKE EFFECT. THE D.C.
CIRCUIT GOT IT RIGHT. CAROLINE: AND THEN IT IS OVER TO TRUMP AND THE NEW ADMINISTRATION. FASCINATING. WE WILL CHECK IN WITH YOU. DAVID SACHS AS WHITE HOUSE AI AND CRYPTO CZAR. TRUMP POSTING THAT THE VENTURE CAPITALIST WILL GUIDE POLICY IN ARTIFICIAL INTELLIGENCE AND CRYPTOCURRENCY, TWO AREAS CRITICAL TO THE FUTURE OF AMERICAN COMPETITIVENESS. KATIE RUTH HELPS COVER ALL
THINGS VENTURE. WE HAVE ANOTHER VENTURE CAPITALIST OTHER THAN THE VICE PRESIDENT-ELECT IS WELL-BEING ONE. DAVID SACHS HAS BEEN CLOSE TO TRUMP OF LATE. CAN YOU TELL US HOW WE GOT HERE? >> HE WAS A BIG FUNDRAISER FOR THE PRESIDENTIAL CAMPAIGN AND ALSO QUITE CLOSE TO JD VANCE, THE VICE PRESIDENT-ELECT. DAVID SACHS WAS HOSTING FUNDRAISERS AND GETTING OTHER SILICON VALLEY SUPPORTERS TO COME ON BOARD AND SUPPORT TRUMP. IT IS NOT SURPRISING THAT THERE IS SOME SORT OF PARTNERSHIP HERE. CAROLINE:
AND INDEED, NOT A FULL AT THE SEAT ROLE IN POLITICS. THAT MEANS HE HAS TO STEP AWAY FROM CRAFT VENTURES. WE KNOW HE HAS FOCUS THERE BECAUSE HE HAS A KEY MAN RISK. HIS VENTURE-CAPITAL HISTORY HAS BEEN EXTRAORDINARY. HE HAS BEEN IN THE ANGEL ROUNDS OF SOME OF THE MOST SUCCESSFUL EXITS WE HAVE COMING OUT OF -- WE HAVE SEEN COMING OUT OF SILICON VALLEY. HOW INTIMATELY IS HE ENTER WEAVED IN AI AND CRYPTO? KATIE: THERE IS ALREADY QUESTIONS WHERE PEOPLE ARE ASKING, DOES HE HAVE A CONFLICT OF INTEREST HERE? GIVEN THAT THIS IS A LESS FORMAL ROLE IT IS UNCLEAR IF THERE IS ANY ROADBLOCKS THERE.
HE IS CERTAINLY VERY MUCH PART OF THE ECOSYSTEM. HE HAS A POPULAR PODCAST THAT MANY PEOPLE IN SILICON VALLEY AND BEYOND LISTEN TO WHERE HE AIRS CONTROVERSIAL OPINIONS. BUT I SEE THIS AS A SIGN OF DEREGULATION. HE IS DEFINITELY VERY TECH-FRIENDLY, YOU KNOW, WITH CRYPTO AND AI HE'S GOING TO WANT TO MOVE TO PREVENT ANYTHING THAT IS OBSTRUCTING THE GROWTH OF THESE TECHNOLOGY COMPANIES.
CAROLINE: REPORTING STRONG FOURTH-QUARTER RESULTS AND WE ARE SEEING SHARES AT A NEW RECORD HIGH. IT IS AROUND THE SALES STRENGTH TO POWER AI WORKLOADS. HOW RESILIENT IS THAT? LET'S ASK ANTONIO NERI, HPE CEO. ONE THING ABOUT THE SERVER BUSINESS IS, IT IS GROWING FAST, BUT HAS IT COOLED? ANTONIO: GOOD MORNING AND THANK YOU FOR HAVING ME TODAY. WE HAD AN EXCEPTIONAL QUARTER AND OBVIOUSLY ONE OF THE FLAGSHIP ELEMENTS OF THE QUARTER WAS AI. BUT I HAVE TO SAY IT WAS MORE THAN AI.
IT WAS ALSO OUR HYBRID CLOUD BUSINESS PERFORMING EXCEPTIONALLY WELL. WE HAVE GROWTH BOTH IN THE TRADITIONAL CPU AND AI SIDE. DEMAND CONTINUE TO BE VERY STRONG. AS OF TODAY WE HAVE MORE THAN $3.5 BILLION IN BACKLOG. THAT SHOWS THE MOMENTUM THAT IS THERE IN THE MARKET. NOW WE ARE SEEING A SIGNIFICANT UPTICK IN THE PIPELINE IN ENTERPRISE AI. BUT IN TOTAL WE HAVE A PIPELINE
THAT IS A MULTIPLE OF THAT BACKLOG. AS WE GO INTO 2025 THERE IS A TRANSITION TO THE SET OF TECHNOLOGIES WITH BLACKWELL, AND AS YOU KNOW TWO MONTHS AGO WE ANNOUNCED A NEW ARCHITECTURE WHICH IS 100% INDUSTRY-FIRST. MORE THAN ONE THIRD OF THAT 3.5 BILLION DOLLARS BACKLOG IS ALREADY IN BLACKWELL. WE EXPECT CONTINUED GROWTH AS WE GO INTO 2025. CAROLINE:
HOW ARE THOSE BLACKWELL SHIPMENTS LOOKING? HOW CERTAIN? ANTONIO: IT IS ALL VERY CONSISTENT TO WHAT WE ARE SEEING. NUMBER OF CUSTOMERS CONTINUED TO GROW. THE DEMAND ACROSS FOUR DIFFERENT SEGMENTS CONTINUED TO BE SOLID. WHEN I THINK ABOUT AI I THINK ABOUT FOUR DISTINCT SEGMENTS. CALL THEM THE MODEL BUILDERS AND HYPERSCALERS, THEN THE TWO TIER -- TIER TWO AND TIER THREE PROVIDERS, GROWING RAPIDLY IN TERMS OF INTEREST. YOU'RE TALKING ABOUT LARGE-SCALE DEPLOYMENT AND WE ARE IN THE PROCESS TO BUILDING IN THE U.K. THE U.K.
BRISTOL AI ICLOUD AND IN JAPAN THE ASD, AND THEN ENTERPRISE. THE OLDER VALUE IS LOWER BUT THE NUMBER IS SIGNIFICANTLY HIGHER. CAROLINE: THE SUPPLY SET HAS BEEN THE ISSUE WITH BLACKWELL IN PARTICULAR. HOW SWIFTLY ARE THOSE OF ARRIVING? HOW ON TRACK YOU FEEL IT IS? ANTONIO: I WOULD SAY THE SUPPLY WOULD COME IN DUE TIME BECAUSE OF THE TRANSITION THAT JENSEN AND TEAM ARE DRIVING. I WANT TO SAY IT IS PROBLEMATIC, IT IS JUST TRANSITIONING THE EARLY PART OF 2025. TODAY WE CONTINUE TO SHIP H
100'S, BUT AS I SAID EARLIER WE ALREADY HAVE MORE THAN ONE THIRD OF THAT FOR THAN $3.5 BILLION IN BLACKWELL. A LOT OF THAT HAS TO DO WITH COMPANIES THAT LEAD WITH THAT TECHNOLOGY BECAUSE THEY WANT TO GET BETTER PERFORMANCE, BETTER ENERGY DENSITY, AND ULTIMATELY LOWER THE COSTS FOR TRAINING. CAROLINE: YOU WERE INTERESTING ARE CURTAILING -- ARTICULATING THE BREATH OF DEMAND. HOW RESILIENT IS THAT DEMAND? WHAT IS INTERESTING ABOUT YOUR BACKLOG IS, IT WAS A $700 MILLION DE-BOOKING. HOW CONFIDENT ARE YOU IN SOME OF THESE DEALS THAT HAVE BEEN SIGNED? ANTONIO: IN OUR CURRENT MODEL WE ARE VERY CONFIDENT. IN BEFORE WE BOOKED $1.2 BILLION OF NEW ORDERS.
WE HAD SPECIFIC CONCERNS ABOUT THE RISK ASSOCIATED WITH THAT ORDER AND WE HAVE VERY STRONG CONTROLS IN PLACE. AND WE FELT THAT BECAUSE OF THE RISK ASSOCIATED WITH EVEN THE FINANCING SIDE WE FELT THIS WAS NOT WORTH THE HEADACHE, AND WE DECIDED TO FOCUS ON THE NUMBER OF GROWING CUSTOMERS WE HAVE AND ALLOCATE SUPPLY TO THE RIGHT CUSTOMERS. CAROLINE: YOU ARE ALSO DOING DEALS. WE ARE HEARING CONFIDENCE ON JUNIPER NETWORKS ACQUISITION FOR THE EARLY 2025. IS THAT GOING TO SELL THROUGH -- CL THROUGH THE NEXT ADMINISTRATION? ANTONIO: WE HAVE RECEIVED PRETTY MUCH ALL OF THE APPROVALS AROUND THE WORLD, WITH WHAT I CALL UNCONDITIONAL SUPPORT. BASICALLY IT TELLS YOU THE REST OF THE WORLD SEES THIS AS PRO-COMPETITIVE.
WITH THE DOJ WE HAVE HAD A VERY COLLABORATIVE PROCESS THROUGHOUT THE LAST SEVERAL MONTHS AND WE EXPECTED THE TRANSACTION TO CLOSE IN THE EARLY PART OF 2025. WHICH STILL IS WITHIN THE ORIGINAL TIMELINES WE STATED WHEN I ANNOUNCED THE DEAL ON JANUARY 10. WHICH WAS THE END OF CALENDAR 2024. NOTHING GIVES ME PAUSE THAT THAT WILL NOT BE THE CASE. FOR THE UNITED STATES THIS IS GOOD NOT JUST FOR COMPETITIVENESS, BUT NATIONAL SECURITY.
ULTIMATELY THE COMBINATION OF JUNIPER AND HP PROVIDES A BETTER ABILITY FOR US TO COMPETE OUTSIDE THE UNITED STATES. REMEMBER THAT FOR THE UNITED STATES WE PROVIDE THE LARGEST SUPERCOMPUTERS THAT ARE DOING ALSO AI, AND THAT REQUIRES A LOT OF NETWORKING. TODAY HEWLETT-PACKARD ENTERPRISE OWNS SEVEN OF THE TOP 10 SUPERCOMPUTERS, NUMBER ONE, NUMBER TWO, AND NUMBER THREE ARE HP SYSTEMS. CAROLINE: BEING REFLECTED IN THE SHARE PRICE AND MORGAN STANLEY SANDING -- SOUNDING UPBEAT ABOUT JUNIPER. THANK YOU, ANTONIO NERI. COMING UP, U.S.
HIRING PICKED UP IN NOVEMBER. WE WILL DISCUSS THE RESILIENCE IN THE TECH SECTOR, BUT IT MEANS IN TERMS OF IMPACT. MEANWHILE JUST INFLICTING ON A COUPLE OF STORIES OUT OF FRANCE TODAY. UBISOFT UP 13%. THIS AS WE GET AN ARTICULATION OF WHAT SOME SORT OF MANAGEMENT BUYOUT COULD BE LOOKING LIKE. TALKS WITH TENCENT HAVE BEEN REPORTED BY REUTERS AND OTHER INVESTORS. CAROLINE: TIME NOW FOR TALKING TECH.
NASA HAS NOT LANDED ON THE MOON IN 50 YEARS. THE NEXT ONE WILL NOT HAPPEN UNTIL AT LEAST 2077. ENGINEERS RACED TO FIX A CRUCIAL SAFETY ISSUE RELATED TO HARDWARE.
THE AGENCY WILL DELAY A MOON FLYBY UNTIL 2026. THE LATEST IN A PROGRAM PLAGUED WITH COST OVERRUNS AND TECHNICAL HURDLES. UBER, LAUNCHING ITS FIRST ROBOTAXI SURVEY IN -- SERVICE IN ABU DHABI.
CUSTOMERS ARE ABLE TO REQUEST VEHICLES AROUND KEY TOURIST AREAS AND UBER EXPECTS TO FULLY LAUNCH ITS DRIVERLESS SERVICE IN 2025. THE DRAMATIC EVENTS IN SOUTH KOREA THIS WEEK HAS CATAPULTED A YEAR OLD MOVIE TO THE TOP OF THE NETFLIX CHARTS. THE FILM BECAME THE NUMBER ONE KOREAN FILMS STREAMED SINCE SOUTH KOREAN -- THE SOUTH KOREAN PRESIDENT STUNNED THE NATION.
THE BLOCKBUSTER DEPICTS THE EVENTS SURROUNDING A COUP IN 1979. THERE HAVE BEEN SOME BIG MARKET MOVES TODAY AND IN LARGE PART IT IS ON THE BACK OF U.S. JOBS DATA. NOVEMBER PAYROLLS COMING IN STRONG, BUT WE WANT TO GET THE TECH PERSPECTIVE. SARAH FRANKLIN JOINS US NOW. WE ARE FASCINATED BY HOW
RESILIENT THIS U.S. JOBS DATA LOOKS. AND HOW THAT RESILIENCE IS POTENTIALLY BEING BORN OUT IN TECH. IS IT? SARAH: WHAT YOU ARE SEEING -- SAYING IS TRUE. WE ARE SEEING PREDICTABILITY AND BALANCE IN THE DATA. AND WE ARE SEEING INCREDIBLE TIME IN TECH, NOT JUST WITH THE JOBS REPORT, BUT WITH A NEW ENTRANT TO THE LABOR FORCE WITH DIGITAL LABOR. CAROLINE:
LET'S TALK ABOUT HOW AUGMENTING DIGITAL LABOR IS OR NOT. YOUR ALMA MATER, SALESFORCE, SAYING THEY'RE GOING TO BE REALLOCATING 1000 WORKERS. MUCH ARE WE GOING TO HAVE TO SEE PEOPLE WORK IN TANDEM WITH GENERATIVE AI? SARAH: YOU ARE DEFTLY SEEN THIS WORLD WHERE AI IS WORKING TOGETHER WITH HUMANS AND PEOPLE ARE SUCCESSFUL WORKING TOGETHER WITH AI TECHNOLOGY. EVERY CEO IS LOOKING TO THE
FUTURE AND SAYING, HOW DO I RESHAPE MY WORK WORSE? HOW DO I BRING AI IN TO HELP US BE MORE PRODUCTIVE, MORE EFFICIENT FROM THE PUBLIC TO THE PRIVATE SECTOR? CAROLINE: WHERE ARE SOME OF THE WORRIES THAT ARE STILL OVERHANGING? THERE DOES SEEM TO BE THIS DISCONNECT THAT WE HAVE ALL OF THESE GENERATIVE AI TOOLS FIT FOR USE TO BUOY OUR PRODUCTIVITY, BUT A LOT OF THE WORKFORCE ARE EITHER SCARED TO USE IT BECAUSE THEY THINK THEY WILL BE DEEMED LAZY, OR ARE NOT GETTING THE TRAINING. SARAH: AI LITERACY AND PROFICIENCY ARE MORE IMPORTANT THAN EVER. EVERY CEO IS SAYING, HOW DO I BRING MY WORKFORCE ALONG TO SKILLED THEM, TO MAKE THEM PROFICIENT IN THESE TECHNOLOGIES? IT IS CRITICAL FOR EVERY JOB FUNCTION, WHETHER YOU ARE DOING CUSTOMER SERVICE, SALES, ACCOUNTING, DATA OPERATIONS. AI IS A PART OF EVERYONE'S JOBS, SO THE SCALING AND TRAINING IS HAND-IN-HAND WITH THE IMPLEMENTATION OF TECHNOLOGY. CAROLINE: I ASK IT EACH TIME YOU ARE ON. IS IT AFFECTING THE NUMBER OF PEOPLE THAT COMPANIES CAN HAVE? SARAH: THERE IS DEFTLY EFFICIENCY GAINS WE WILL SEE, AND COMPANIES ARE LOOKING TO HAVE A WAY TO SCALE THEIR WORKFORCE IN WAYS THAT MEETS THEIR NEEDS. WE ARE GOING TO SEE SHIFTS IN THE LABOR AND JOBS WILL CHANGE.
SOME JOBS WILL BE CREATED. SOME JOBS MAY GO AWAY. WITH THE FUTURE IS ONE WHERE AI AND DIGITAL LABOR IS HERE. THE REPORTS COMING OUT OF DELOITTE TO SAY A QUARTER OF ENTERPRISES NEXT YEAR ARE GOING TO BE DEPLOYING DIGITAL AGENTS.
IT IS IMPORTANT THAT EVERYBODY LEARN THIS TECHNOLOGY AND EVERY CEO IS LOOKING AT HOW THEY SHAPE THEIR WORK FORCE WITH PEOPLE AND THE NEW DIGITAL LABOR ENTRANCE. CAROLINE: SOMEONE TO LISTEN TO, SARAH FRANKLIN, LATTICE CEO THERE ON JOBS IN TANDEM WITH AI. RUBRIK BEATS EARNINGS ESTIMATES. BIPUL SINHA IS GOING TO BE JOINING US. WHAT IS DRIVING THAT DEMAND? THIS IS "BLOOMBERG TECHNOLOGY."
♪ CAROLINE: THE NASDAQ 100 TO TO GRIND HIGHER UP 3% OVER THE LAST FIVE TRADING DAYS. THE MUSIC TODAY CONTINUES TO THE UPSIDE. JOBS DATA LOOKS RESILIENT BUT NOT TOO HOT.
CURRENTLY UP 3.1% OVER FIVE DAYS. WHERE HAS CRYPTO GOD OVER THAT -- GONE OVER THE LAST FIVE DAYS? A VOLATILE RIDE AT ONE POINT ECLIPSING 103,000 DOLLARS. ONE .4% THE LAST TRADING DAYS AND BACK AT 99,178 INCHING HIGHER ON THE DAY BASICALLY STAY AFTER A PULLBACK AFTER REACHING THAT PSYCHOLOGICALLY IMPORTANT NUMBER.
LET'S DIG IN AND TO WHAT ELSE IS WRITING BEHIND IT. ISABEL JOINS US. WE ARE GETTING A NEW CRYPTO AND AI'S ARE COMING IN. THAT WILL MEAN MORE POSITIVE MOOD MUSIC AROUND CRYPTO. THE SEC ANNOUNCEMENT. WHAT ELSE CAUGHT YOUR ATTENTION?
>> THE STARS ARE ALIGNING FOR THE CRYPTO SPACE. NOTHING CAN BEAT IT. THE PERFECT HOLIDAY FOR THEM. BITCOIN IS SOARING. INVESTORS ARE TAKING BACK PROFITS. WHO WOULDN'T? ESPECIALLY IF YOU PUT IN A LOT
OF IT. I WANT TO BRING THE ATTENTION TO THE BITCOIN ETF. THIS IS IMPRESSIVE BECAUSE IT IS ALL KINDS OF THE BIGGEST ETF'S.
THE MOST SUCCESSFUL ETF SO FAR WITH OFFICIALLY 50 BILLION. YOU REALLY SEE INSTITUTIONAL DEMAND GOING INTO THAT. WALL STREET INVESTORS AREN'T SCARED ANYMORE. KAREN IN ERIN MICROSTRATEGY, THE VOLATILITY AROUND IT. WHERE ARE WE SEEING OTHER AREAS OF GROWTH FROM INSTITUTIONAL AND RETAIL? >> THAT IS WHAT WE ARE NOT SEEING YET FOR THE ALTCOIN ETF. ETHER ETF DEBUTED EARLIER THIS YEAR AND SAW MASSIVE INFO.
NOW WE HAVE A LOT OF PENDING ETF'S FROM SRP TO SOLANA. IT REMAINS TO BE SEEN WHETHER WE WILL SEE IN FLOWS FOR THEM BUT JUDGING BY ETHER IT IS NOT SUCH A PRESENT -- PROMISING START BUT WITH A TRUMP PRESIDENCY AND THE NEW SEC PIC MAYBE INVESTORS WILL PILE INTO THE ETF'S. CAROLINE: THIS IS SUCH A MACRO PICTURE.
IT IS AN ASSET CLASS THAT PEOPLE FEEL THEY OUGHT TO HAVE EXPOSURE TO. >> AT LEAST BITCOIN. DIGITAL GOLD THEY GET. FINANCE SUPPLY THEY GET. INFLATION HEDGING THEY GET BUT HOW DO YOU SELL ETHER, XRP, SOLANA? BLACKROCK INVESTMENT IN THE 2025 OUTLOOK INCLUDED BITCOIN FOR THE FIRST TIME. SO IT IS GETTING THERE.
CONVERSATION IS MOVING INTO CRYPTO FOR NOW. CAROLINE: I WAS AT THE STATION YESTERDAY AND TWO POLICE OFFICERS WERE TALKING ABOUT BITCOIN AND HOW IT WAS GOING TO GO HIGHER. NOW LET'S TURN FROM CRYPTO TO DATA SECURITY. DATA SECURITY SOFTWARE FIRM
RUBRICS CAME OUT WITH NUMBERS EATING EARNINGS EXPECTATIONS AND BOOSTING FULL-YEAR REVENUE GUIDANCE. THE MARKET REACTION UP 34 PRESENT ON THE DAY. THAT IS A RECORD HIGH. LET'S TALK TO THE RUBRICS COFOUNDER AND CEO. CONGRATS ON THE NUMBERS.
ANALYSTS LIKE WHAT YOU SHOW WITH CROSS-SELLING HERE. MANY SAY YOU ARE THE ONLY GAME IN TOWN WHEN IT COMES TO CYBER AND DATA SECURITY. HOW ARE YOU SEEING YOUR CLIENTS PICK UP? >> THANK YOU, CAROLINE. ANOTHER OUTSTANDING QUARTER. WE ARE VERY PLEASED TO NOT ONLY HAVE STRONG GROWTH AT THIS SCALE TOPLINE BUT IMPROVE THE PROFITABILITY AND GENERATE FREE CASH FLOW. IT'S AN EXCITING TIME FOR US. WHAT IS FUELING THE RUBRICS DEMAND IS THE UNDERSTANDING THAT PEOPLE WILL SPEND THOUSANDS OF DOLLARS BUT YOU NEED A RESILIENCY STRATEGY TO ENSURE THAT WHEN EACH HAPPENS YOU CAN STILL RUN YOUR BUSINESS. THAT KIDS CAN GO TO SCHOOL
BECAUSE SCHOOLS ARE OPEN. THAT IS WHAT WE ARE FOCUSED ON. WE ARE HELPING BUSINESSES MAKE SURE THEY ARE CONTINUING OPERATION EVEN WHEN CONFRONTED WITH CYBERATTACK AND THAT IS FUELING DEMAND. CAROLINE: TODAY A STORY ON BLOOMBERG IS ABOUT RANSOMWARE GANGSTA TARGETING NOT JUST BIG INSTITUTIONS BUT SMALLER AND MEDIUM-SIZED ENTERPRISES. WHAT IS THE OUTLOOK FOR EVERYBODY HAVING TO ADOPT SOME PROTECTION HERE? >> RANSOMWARE IT'S A HUGE PROBLEM BECAUSE IT IS A MONETIZE UP AWAY FOR GANGS AND CRIMINALS TO MAKE CYBERATTACKS. THEY ARE TARGETING LOCAL GOVERNMENTS AND SCHOOLS. THEY ARE TARGETING HOSPITALS AND OTHER HEALTH CARE INSTITUTIONS BECAUSE THE ORGANIZATIONS AREN'T PROTECTED PROPERLY. THERE IS SO MUCH SENSITIVE DATA
IN HEALTH CARE, THREE TIMES MORE THAN AVERAGE. THE AMOUNT OF DIGITAL TRANSFORMATION HELPING IN THAT IS HAPPENING IN THE HEALTH CARE TO REDUCE THE COST OF HEALTH CARE, AS A RESULT, WE HAVE A FOCUS ON REALLY PROTECTING THE UNPROTECTED. CAROLINE: WE WILL BREAK SOME NEWS. HOLD ON. NEWS OUT OF MARK GURMAN. APPLE IS PREPARING THE CELLULAR MODEM CHIPS WE HAVE BEEN HEARING ABOUT THAT WILL REPLACE COMPONENTS FOR ITS PARTNER, BUT ALSO BASICALLY ITS ADVERSARY QUALCOMM.
QUALCOMM OFF BY A PERCENTAGE POINT AND APPLE UP .3%. MORE THAN FIVE YEARS THEY HAVE BEEN FOCUSED ON THIS IN HOUSE MOTIVE SYSTEM AND IT WILL BE DEBUTING NEXT SPRING ACCORDING TO PEOPLE FAMILIAR. WE WILL BRING YOU MORE ON THIS STORY. WE WERE JUST TALKING ABOUT HOW THE EXPANSIONARY NATURE OF THE RANSOMWARE ATTACKS UNFORTUNATELY.
CAN YOU PAINT A PICTURE OF WHAT IT LOOKS LIKE GOING INTO THE NEXT ADMINISTRATION, 2025. ARE WE LIKELY TO SEE THE NARRATIVE THEIR CHANGE AROUND IT DATA PROTECTION, DATA SECURITY, CYBERSECURITY? BIPUL: THE NEXT ADMINISTRATION WILL BE AN AMERICA FIRST ADMINISTRATION AND WILL -- IT WILL SPUR MORE INSIDER ATTACKS, CYBERATTACKS. WE BELIEVE THAT THE NEXT BUSINESS -- ADMINISTRATION WILL BE A BUSINESS FOCUSED ADMINISTRATION. THE OUTLOOK FOR CYBERSECURITY IS GRIM.
AS THEY EXPAND INTERNATIONALLY, EXPAND THEIR BUSINESS, CREATE MORE DIGITAL TRANSFORMATION ARTICLE IS TO HAVE -- OUR GOAL IS TO HELP EVERY BUSINESS CONFIDENTLY TRANSFORM THEMSELVES DIGITALLY WITHOUT WONDERING HOW THEY WILL KEEP THEIR SERVICES UP AND RUNNING. CAROLINE: WE HAVE NOT MENTIONED A GENERATIVE AI. HOW MUCH DO YOU REFERENCE THAT TO YOUR CLIENTS? BIPUL: GENERATIVE AI APPLICATIONS ARE DATA HUNGRY AND PULLING DATA FROM ALL NOOKS AND CRANNIES OF BUSINESS APPLICATIONS TO A CENTRALIZED PLACE. ENSURING THAT DATA DOES NOT FALL INTO THE WRONG HANDS USING THE GENERATIVE AI APPLICATIONS, YOU DON'T WANT PEOPLE IN THE HOSPITAL TO HAVE ACCESS TO PATIENT RECORDS. THAT IS WHERE WE ARE VERY FOCUSED ON DELIVERING DATA SECURITY ENSURING THAT GENERATIVE AI APPLICATIONS ARE TRUSTED AND RESPONSIBLE. CAROLINE:
RUBRIK SOARING ON THE BACK OF YOUR NUMBERS TODAY. MORE EARNINGS ARE COMING UP. NEXT AFTER THE BREAK. ALSO BEATING EXPECTATIONS ON EARNINGS. BLOOMBERG TECHNOLOGY.
CHECK OUT THE BLOOMBERG TECHNOLOGY PODCAST ON THE TERMINAL, APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG. ELECTRONIC SIGNATURES SOFTWARE COMPANY DOC YOU SIGNS THIRD QUARTER NUMBERS BEAT EXPECTATIONS. THE COMPANY IS BOOSTING ITS REVENUE FORECAST FOR THE FULL YEAR UP AGAIN AT 25% ON THIS COMPANY. LET'S TALK ABOUT IT WITH THE CEO , WHO IS ULTIMATELY DISPLAYING WHAT SEEMS TO BE A GROWTH HERE THAT IS NOT JUST COMING FROM A CONTRACT RENEWAL, BUT NEW PRODUCTS YOU ARE OFFERING. HOW MUCH IS TO BE SAID FOR THEIR GALVAN IS AND GROWTH? >> IT WAS A POSITIVE QUARTER FOR US. WE BEAT ON ALL METRICS TO RAISE FOR THE FULL YEAR.
IT WAS A REFLECTION OF STRENGTHS ACROSS THE BOARD. IN OUR EXISTING SIGNATURE BUSINESS THAT EVERYBODY KNOWS WELL WE SIGNIFICANTLY IMPROVE RETENTION AND REDUCED TURN. WE HAVE GROWN OUR CHANNELS FROM BEING PREDOMINATELY DIRECT SALES TO NOW HAVING A STRONG TRADITIONAL CHANNEL AND BUILDING OUT OUR PARTNER CHANNEL. AND YOU MENTIONED OUR NEW PRODUCTS THAT WE LAUNCHED AT THE END OF MAY TO LIMITED DISTRIBUTION TO MIDSIZED CUSTOMERS IN NORTH AMERICA. WE STARTED CONTRIBUTING THIS QUARTER AS WELL. IT IS STILL EARLY. BUT I THINK THAT DOCUSIGN IS ON A POSITIVE TRAJECTORY OF REJUVENATION. CAROLINE: LET'S TALK ABOUT THAT.
THE ACCELERATIONS AND BILLINGS ARE COMING FROM A VERY DEPRESSED LEVEL AND EVERYBODY IS SAYING THIS IS REALLY ENCOURAGING. BUT REALLY THEY ARE WAITING FOR NEW SOLUTIONS, NEW OFFERINGS TO MAKE MEANINGFUL DIFFERENCE TO YOUR REVENUE. ONCE THAT HAPPENED? WILL THAT HAPPEN? ALLAN: IT'S A JOURNEY AND WE ARE WORKING ON THAT. OUR GOAL IS TO RETURN TO DOUBLE-DIGIT GROWTH. WE AREN'T PUTTING A PARTICULAR TIMELINE ON THAT. AS WE ROLL OUT NEW PRODUCTS ACROSS MORE GEOGRAPHIES AND SEGMENTS THAT WE JUST MARCHED AROUND THE WORLD HERE ABOUT A MONTH AGO AND JUST STARTED SHIPPING TO ENTERPRISE ROLLOUTS AT THE DEPARTMENTAL LEVEL, ROLLOUTS AND ENTERPRISES.
WE ARE STILL ADDING CUSTOMER GEOGRAPHIES. AND AS THAT IMPACTS MORE AND MORE WE CAN DRIVE MORE GROWTH. ANY CONTINUED IMPROVEMENT IN OUR CORE BUSINESS ALSO HELPS. YOU ARE STARTING TO SEE EARLY SIGNS OF THAT. WE HAVE MORE WORK TO DO. IT IS VERY ENCOURAGING THE
PROGRESS. CAROLINE: THE BLOOMBERG TERMINAL POINTS OUT THE REVENUE EXPECTATIONS FOR YOUR BUDGET -- BUSINESS GOING TO 2027. WHAT DO YOU THINK REALLY CATALYZES BACK TO -- I'M NOT SAYING THE 40% INCREASE IN REVENUE WE HAD IN 2021, 20 22. BUT AT LEAST THE DOUBLE-DIGIT. WHAT GETS YOU THERE? ALLAN: I THINK THROUGH A COMBINATION OF CONTINUED IMPROVEMENT AND RETENTION AT OUR CORE AND THE FULL ROLLOUT AND ADOPTION OF OUR NEW PRODUCTS. IT IS A MUCH BROADER VALUE PROPOSITION THEN DOC YOU SIGN HAS HAD HISTORICALLY. IT IS A TRUE C-SUITE SAIL
ACROSS THE ENTIRE ENTERPRISE AND I THINK WE HAVE TREMENDOUS GREENFIELD OPPORTUNITY. TO REALLY HELP TRANSFORM HOW AGREEMENTS GET DONE. THAT IS OUR OPPORTUNITY. AS WE EXECUTE ON THAT, WE CAN
DELIVER ON THAT GROWTH OPPORTUNITY. CAROLINE: YOU HAVE 1.5 MILLION CUSTOMERS. WHAT SORT OF NUMBERS DO YOU END UP GETTING TO DO YOU THINK? ALLAN: AS YOU MENTIONED WE ALREADY HAVE OVER A BILLION SIGNERS. I AM SURE THAT WE WILL ADD MORE. WE HAVE A LOT OF PEOPLE THAT ARE ALREADY USED IT TO SIGNING DOC HE SIGNED DOCUMENTS. FROM THE CUSTOMER PERSPECTIVE
WE ARE GROWING OUR CUSTOMER BASE 10% YEAR-OVER-YEAR OVER QUARTER. THOSE TEND TO BE SMALLER CUSTOMERS. WE ARE ALREADY PRESENT IN MOST LARGE COMPANIES IN THE WORLD WITH OVER 85% OF THE FORTUNE 500 ALREADY DOCUSIGN CUSTOMERS. OUR OPPORTUNITY IS ADDING NEW BROADER SOLUTIONS INTO KINDS THAT ARE ALREADY GENERALLY HAPPY CUSTOMERS WITH DOC YOU SIGN. CAROLINE: WHERE IS THE COMPETITION FOR YOU? WHO DO YOU MOST OFTEN PIT YOURSELF AGAINST? ALLAN: HISTORICALLY, WE HAVE HAD COMPETITION IN THE ELECTRONIC SIGNATURE SPACE WERE BY FAR THE MARKET LEADER, THE PREFERRED BRANDED SOLUTION BUT WE HAVE LOWER PRICE COMPETITION THERE. I THINK INCREASINGLY AS WE MOVE
INTO THIS SPACE IN THE COMPETITIVE DYNAMICS CHANGE. WE BELIEVE THAT'S MOSTLY OPEN FOR THE RUNNING AND I THINK WE ARE THE FIRST TO ARTICULATE THE BROADER MISSION AND EXECUTE ON IT. IF WE CAN KEEP THAT GOING I THINK WE ARE IN A VERY GOOD POSITION. CAROLINE: GIVE US THE BIRD'S EYE PERSPECTIVE. WHEN YOU ARE IN 180 COUNTRIES,
WHERE ARE WE GROWING GEOGRAPHICALLY? HOW RESILIENT DOES THE U.S. LOOK? ALLAN: THE U.S. ECONOMY HAS BEEN THE STRONGEST OF THE MAJOR DEVELOPED MARKETS. WE ARE CERTAINLY BENEFITING FROM THAT.
ON THE OTHER HAND, THE U.S. IS ALSO THE FIRST SYSTEM OFF OF THE ADOPTION OF THE ELECTRONIC SIGNATURE WHICH REMAINS THE BULK OF OUR REVENUE. OTHER MAJOR MARKETS, GERMANY, AND JAPAN ARE AT A MUCH EARLIER STATE OF ADOPTING VARIOUS FORMS OF ELECTRONIC CONTRACTING. WE ARE GROWING FASTER OUTSIDE THE U.S. THAN IN THE U.S. AND I THINK THAT WILL CONTINUE TO BE THE CASE FOR YEARS TO COME. CAROLINE: DUCKY SIGN CEO --DOCUSIGN CEO ALLAN THYGESEN GREAT TO HAVE SOME TIME WITH YOU.
ELON MUSK'S AI STARTUP XAI HAS CAROLINE:META AI. YOU ARE USING IT PROBABLY BECAUSE 600 MILLION PEOPLE USE IT EVERY MONTH. META PLATFORMS ON A NEW RECORD HIGH OF THE BACK OF THE TIKTOK NEWS THAT TIKTOK'S BAN DIVEST WILL BE PUSHED UNTIL JANUARY 19. THE CEO MARK ZUCKERBERG SAID ON THREADS THE COMPANY IS RELEASING ITS LAW ABOUT MODEL -- LLAMA 3.3 MODEL. INTERWEAVING A GENERATIVE AI ACROSS THE ENTIRE PRODUCT RANGE. WE WILL DIVE INTO GENERATIVE AI AND AT THE COMPETITION THERE NOW BECAUSE ELON MUSK'S X AI RAISED $6 BILLION IN NEW CAPITAL WRAPPING UP A FUNDING ROUND THAT HAS BEEN IN THE WORKS FOR BASICALLY MONTHS NOW. IT WAS SAID TO VALUE THE START
UP $40 BILLION. 97 INVESTORS WERE NOT NAMED. X AI IS MORE ABOUT THE GENERATIVE AI LARGE LANGUAGE MODELS. WHAT IS HE USING THIS MONEY FOR? >> I THINK A PORTION OF THE MONEY IS EXPECTED TO GO TOWARDS A SUPERCOMPUTER THAT X AI HAS BEEN BUILDING IN MEMPHIS TENNESSEE. THEY ANNOUNCED OVER THE SUMMER IT WOULD POSSIBLY BE THE LARGEST SUPERCOMPUTER IN THE WORLD WITH TENS OF THOUSANDS OF NVIDIA CHIPS RUNNING AT THE SAME TIME. THAT IS A VERY EXPENSIVE PROJECT. IT'S A VERY AMBITIOUS PROJECT.
SO THAT KIND OF EXPLAINS WHY ELON MUSK NOT ONLY RAISED 6 BILLION DOLLARS FOR X AI IN THE FILING YESTERDAY BUT 6 BILLION ADDITIONAL DOLLARS OF FUNDING IN MAY. CAROLINE: WE KNOW WHO THE PREVIOUS INVESTORS HAVE BEEN. ONE OF THEM IS THE AI AND CRYPTO CZAR TO THE NEXT ADMINISTRATION DAVID SACHS. WHO ELSE HAS PREVIOUSLY WANTED TO WRITE CHECKS TO THIS COMPANY? >> WE SEE A SIMILAR ROSTER ALMOST EVERY TIME ELONG GOES TO RAISE MONEY. ANDREESSEN HOROWITZ, SEQUOIA CAPITAL, POWER AND EQUITY, THE CONTINUOUS OR REGULAR INVESTORS IN ELON'S BUSINESS. NOT JUST X AI BUT X FORMERLY TWITTER, SPACEX, TESLA.
THE SAME NAMES EVERY TIME. WE DON'T KNOW WHO EXACTLY IS IN THE LATEST ROUND BUT YOU CAN BET IT IS MOST LIKELY THE SAME NAMES WE SEE REGULARLY WITH HIM. CAROLINE: WHAT DOES X AI MEAN TO THE REST OF THE BUSINESSES? AT SOME POINT THERE WAS CONCERN THAT SOME SPENDING HEADING TOWARDS TESLA WAS BEING PINCHED TOWARDS X AI. BUT THEN THERE IS PERHAPS HOW MUCH AI WILL HELP TESLA'S BUSINESS MODEL AND HOW MUCH IT WILL CONTINUE TO INNOVATE ON GROK FOR EXAMPLE. >> IT IS THE THORNY WORLD WHERE ELON OPERATES FOR ALL OF HIS BUSINESS IS BORROWING RESOURCES FROM ONE COMPANY TO HELP WITH ANOTHER COMPANY. HE TALKS ABOUT ALL OF THE POSTS SHOWING UP ON X.
HE TALKS ABOUT USING X AI WITH TESLA MAY BE INVESTING IN X AI VIA TESLA. SO HIS UNIVERSE, EVERYTHING BLURS TOGETHER. WE ARE SEEING THIS AS THE AI LAYER FOR A BUNCH OF HIS COMPANIES AND THE FUNDING THEY GET FROM INVESTORS ESPECIALLY THOSE INVESTED IN OTHER BUSINESSES YOU WILL CONTINUE TO SEE THE CONNECTION BETWEEN X AI AND EVERYTHING ELSE IN HIS EMPIRE. CAROLINE: WE HAVE HAD SAM ALTMAN ON STAGE THIS WEEK TALKING ABOUT HOW HE IS NOT TO WORRIED OR PERTURBED BY ELON MUSK HITTING ON OPENAI'S FUTURE SUCCESS AND META ANNOUNCING JUST HOW MANY PEOPLE ARE USING THEIR GENERATIVE AI PRODUCTS ACROSS THE WHOLE GAMUT OF THEIR PRODUCT OFFERING. WHERE ARE PEOPLE GOING AT THE MOMENT FOR GENERATIVE AI OFFERINGS MORE BROADLY? KURT: I THINK CHATGPT FROM OPENAI IS STILL THE FIRST THING THAT COMES TO MIND WHEN PEOPLE THINK OF THIS.
META HAD AN ANNOUNCEMENT A FEW MINUTES AGO, 600 MILLION MONTHLY USERS OF THEIR META AI BOTS NOW BENEFIT FROM THE FACT THEY PUT THAT BOUGHT INTO INSTAGRAM, FACEBOOK AND WHAT'S AVERAGING -- WHATSAPP REACHING PEOPLE JUST FROM PUTTING THAT INTO A PRODUCT THEY ARE ALREADY USING. I THINK THERE WILL BE COMPANIES COMING IN FRONT. CHATGPT, META AI AND GROK WHICH IS BUILT INTO X IS WHAT I THINK OF WHEN IT COMES TO THESE GENERATIVE AI BOTS.
CAROLINE CONNAN THE TECH INDUSTRY --CAROLINE: THE TECH INDUSTRY HAS BEEN HITTING THE WALL BUILDING BETTER AI MODELS. YOUR LATEST NEWS LETTER, MARK ZUCKERBERG RELEASES LLAMA 3.3 SEEING IT AS THE NEXT BASE MODEL.
HOW HAVE PEOPLE BEEN HITTING AGAINST IMPROVEMENTS HERE? SHARON: HERE IS THE THING. AI IS CERTAINLY GETTING BETTER BUT WE HAVE TO THINK ABOUT THE BOLD BETS LEADERS OF THESE COMPANIES ARE MAKING, THAT WE WILL REACH ALL KNOWING, VERY POWERFUL PASSING OR GUSH MATCHING OR SURPASSING HUMAN INTELLIGENCE LEVEL AI IN THE NEXT FEW YEARS. THAT'S THE RACE THESE COMPANIES ARE GOING AGAINST NOW AND THAT'S WHY THERE ARE MISSED EXPECTATIONS AROUND THE PACE OF WHICH THEY WILL BE ACTUALLY ABLE TO DELIVER ON THAT. CAROLINE: SAM ALTMAN THIS WEEK BRIEFLY SAME 2025, RIGHT? >> RIGHT AND WE ARE SEEING PROGRESS. BUT BY NOW, SOME PEOPLE ARE SAYING WE HAVE NOT YET SEEN A GPT FIVE LEVEL MODEL OR THE NEXT DATE MODEL FROM ANTHROPIC. THAT'S THE CONCERN. CAROLINE: SERVING THE FOREIGN MY THANK
2024-12-09 23:09
