Apple's iPhone Hits Stores, Microsoft's AI Power Needs | 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 AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. APPLE'S IPHONE 16 HITS THE STORES TODAY WITHOUT THE CRUCIAL AI FEATURES. ED: MICROSOFT'S AI POWER NEEDS PROMPT, THE REVIVAL OF A DORMANT REACTOR. CAROLINE: WE HEAR FROM THE SALESFORCE CEO MARC BENIOFF AND FROM THE COMPANY'S HEAD OF VENTURES.
LET'S CHECK IN ON THESE MARKETS AS WE ROUND OUT A RISK ON WEEK. WE ARE UP MORE THAN A PERCENTAGE POINT. SIGNIFICANT GAINS ON THIS BENCHMARK WHERE WE ECLIPSED A 5% GAIN. EXTRAORDINARY MOVES. WE DIAL BACK ON THE DAY. WE HAVE DIGESTED THE FEDERAL RESERVE CUTS.
WHAT DOES THAT MEAN FOR PROFIT TAKING? WHAT ARE YOU WATCHING IN TERMS OF A KEY LEG? ED: APPLE UP 0.6%. THE IPHONE 16 LINEUP GOES ON SALE TODAY. YOU WILL HAVE SEEN THE SCENES IN NEW YORK CITY, HERE IN SAN FRANCISCO THEY ARE THE SAME THING.
THERE ARE A LOT OF QUESTIONS ABOUT HOW OR WHETHER OR NOT THIS WILL DRIVE AND UPGRADE CYCLE. WE THINK ABOUT THE IPHONE IN THE CONTEXT OF APPLE'S PORTFOLIO OF PRODUCTS. IT IS PARTICULARLY IMPORTANT. THE FIGHT CHART TELLS THE STORY. THERE WAS A LOT OF SKEPTICISM ABOUT THE INNOVATION, THE MAIN INNOVATION BEING A BUTTON FOR CAMERA CONTROL. IS THE DELAY OF THE RACE OF APPLE INTELLIGENCE, THE GENERATIVE AI PLATFORM, TO A LATER DATE GOING TO IMPACT THIS CYCLE? THOSE ARE THINGS WE NEED TO CONSIDER. CAROLINE: WE HAVE THE PERFECT VOICE TO DO IT WITH.
YOU RUN THE NUMBERS, TELL US THE FUTURE OF HOW INTEGRAL THE IOS SYSTEM AND APPLE REMAINS. ARE YOU ANTICIPATING GROWTH ULTIMATELY OF MARKET SHARE FOR APPLE HERE? >> YOU KNOW, WE ALL RECOGNIZE THAT THE TIME OF LAUNCH, THE FEATURES ANNOUNCED, IT WAS EXCITING, BUT A LOT OF PEOPLE WERE DISAPPOINTED. IT IS A LONG-TERM PLAY. IT IS A FIRST STEP IN A LONG JOURNEY AND A BIG STEP. LONG-TERM, WE DO EXPECT THIS TO IMPROVE APPLE IN A LONG-TERM WAY. WE ARE NOT EXPECTING THE IPHONE 16 LAUNCH DESPITE THE HYPE AND THE MARKETING AND APPLE INTELLIGENCE EVEN IF IT IS ROLLED OUT LATER, WE DON'T EXPECT UP IN THE CYCLE THIS YEAR. NEXT YEAR HOWEVER, WE ARE EXPECTING 4% GROWTH FOR APPLE. CAROLINE: WHY THE 4% ACCELERATION? NABILA: SO, WE HAVE MOVED IT UP 1% OR 2%, BUT AFTER ALL THE ANNOUNCEMENTS AT WWDC AND THE FORECASTS A FEW WEEKS AGO, GIVEN EVERYTHING WE HAVE SEEN ALREADY TALKED ABOUT APPLE INTELLIGENCE AND WHAT IS TO COME, I THINK IT IS NOT ABOUT WHAT IS HERE TODAY, BUT BY NEXT YEAR WHAT WILL HAPPEN.
WE WILL GET LANGUAGE BEING ROLLED OUT AND HOPEFULLY THE ISSUES WITH THE INTRODUCTION OF APPLE INTELLIGENCE AN EU AND IN CHINA WITH PARTNERSHIPS BEING ESTABLISHED, WE THINK THAT WILL HELP ACCELERATE THE MOMENTUM TOWARD THE APPLE INTELLIGENCE. TOWARD LATER NEXT YEAR OR THE 17 SERIES ESPECIALLY. BECAUSE I THINK RIGHT NOW IT IS STILL NEW IN TERMS OF THE USE CASES. AS THEY YOU SAID AND THEY SEE THEIR FRIENDS AND FAMILY USE IT AND MARKETING PICKS UP, WE THINK THOSE FACTORS COMBINED WILL CREATE A BUMP OF A CERTAIN PERCENTAGE OF PEOPLE.
THE AVERAGE IS FOUR YEARS IN THE CYCLE. WE KNOW PLENTY OF PEOPLE THAT HAVE IPHONE 11 AND IPHONE X. NEXT YEAR, WE ARE THINKING THAT THOSE WITH THE 13 OR THE 14 THINKING, I WANT THIS. ED: YOU AND I WERE TOGETHER AT
APPLE PARK LAST WEEK, IT SEEMS LIKE A LONG TIME AGO. IT IS WORTH REMINDING THE AUDIENCE ABOUT HOW TIM COOK SUMMARIZED THIS GENERATION OF PHONE. >> THE INNOVATION AND INVENTION THESE PRODUCTS DELIVER WILL CONTINUE TO DEEPEN THE MEANINGFUL IMPACT THEY HAVE ON ALL OF OUR LIVES. I'M PROUD OF OUR TEAMS AND WHAT THEY HAVE ACCOMPLISHED AND I CAN'T WAIT FOR YOU TO EXPERIENCE THESE AMAZING PRODUCTS. ED:
SO THEN I LOOK AT YOUR OWN RESEARCH, YOUR IDC FORECAST FOR SHIPMENTS OF SMARTPHONES IN THE YEARS TO COME AND GENERATIVE AI. THAT IS MY QUESTION FOR YOU, THE INNOVATION TIM COOK IS TALKING ABOUT. IT IS NOT REALLY GOING TO THE HARDWARE SIDE, IS IT? NABILA: NO AND THEY DROVE THAT MESSAGE VERY CLEARLY.
IT IS REALLY ABOUT THE CHANGE IN THE USER EXPERIENCE. HOW ARE THESE FEATURES GOING TO IMPROVE YOUR LIFE AND MAKE YOUR LIVES EASIER? OF COURSE, THEY SHOWCASED SOME OF THOSE USE CASES, BUT REALLY IN THE LONG RUN IT IS GOING TO CHANGE THE COMPLETE WAY WE INTERACT WITH OUR SMARTPHONES. I THINK THAT IS WHEN GENAI WILL REALLY TAKE, WHEN THE VISUAL ASSISTANTS START COMING INTO PLAY, WHEN WE CAN TALK TO OUR PHONES. I'M EXCITED FOR WHEN THAT HAPPENS. CAROLINE: SOFTWARE INNOVATION. THE HARDWARE INNOVATION, THAT LIMELIGHT GOT STOLEN BY HUAWEI A FEW HOURS AGO. NOT EVERYONE WANTS A TRIFOLD
PHONE, BUT HOW ARE WE SEEING INNOVATION AS WE PULL AWAY FROM MARKET SHARE IN CHINA? NABILA: HUAWEI'S LAUNCH DID GET A LOT OF ATTENTION AND THEY WERE TRYING TO SHOWCASE ONE OF THE HARDWARE SIDE WITH THE VULNERABLE DEVICE. THE TRUTH OF THE MATTER IS HUAWEI DOES REMAIN A VERY VALID COMPETITOR FOR APPLE IN CHINA. THE FOLDABLE SEGMENT IS STILL VERY NICHE. WE DO BELIEVE THAT IN TERMS OF FOLDABLES OR THIS SPECIFIC PRODUCT IMPACTING APPLE NEGATIVELY, I DON'T THINK SO.
IT IS A VERY NICHE SEGMENT AND SPECIFICALLY WITH THE TRIFOLD DEVICE, IT IS STILL GOING TO BE EVEN FURTHER NICHE WITHIN THE FULL DOUBLES BECAUSE OF SUPPLY CHALLENGES HUAWEI IS SEEING. OVERALL, IT IS A ROCKY ROAD FOR APPLE THIS YEAR, BUT WE DO HOPE AS THEY RESOLVE THE PARTNERSHIP ISSUES IN CHINA, ESPECIALLY BECAUSE AI, CHINA MARKET CONSUMERS ARE VERY SPEC DRIVEN IN TERMS OF THE IMPORTANCE OF AI FEATURES TO CONSUMERS. CHINESE CONSUMERS ARE MORE LIKELY TO PLACE IT IN TERMS OF DETERMINING A PURCHASE. ED: WE WERE SHOWING PICTURES AROUND THE WORLD INCLUDING CHINA. 60 COUNTRIES IS IMPORTANT. SOME PEOPLE WILL BUY SOME IPHONE 16'S. IT IS ALL RELATIVE TO PRIOR GENERATIONS.
COULD YOU GIVE ANY SORT OF GEOGRAPHICAL CONTEXT ON WHERE YOU THINK THIS HANDSET WILL DO WELL AND WHERE IT WILL DO POORLY? NABILA: IN TERMS OF THIS COMING FOR THE REST OF THIS YEAR, WE THINK THERE IS A LARGE INSTALLED BASE OF USERS. IN REGIONS WHERE THE REFRESH CYCLES ARE LONGER, I THINK DEVELOPED MARKETS WHERE APPLE HAS LARGER SHARE, BUT THERE ARE LOTS OF THOSE INSTALLED BASE OF OLDER MODELS, I THINK THOSE ARE THE REGIONS THIS YEAR. IT IS NOT REALLY APPLE INTELLIGENCE THAT WILL MOTIVATE THEM TO BUY, IT IS TIME FOR THEM TO UPGRADE ANYWAY. I THINK THAT NEW BUYERS WITH
SHORTER REFRESH CYCLES WILL HAPPEN NEXT YEAR ESPECIALLY WITH THE TRADE-IN PROMOTIONS. RIGHT NOW, IT IS MORE OF A FUTURE PROOF DEVICE WITH THE IPHONE 16. ED: NABILA PROPAL, THANK YOU, GOOD TO HAVE YOU BACK ON BLOOMBERG TECHNOLOGY. COMING UP ON THE SHOW, ELON MUSK IS NOW ONE OF THE SECRET SERVICE'S RADAR AFTER DELETING A POST ABOUT ASSASSINATION ATTEMPTS ON PRESIDENTIAL CANDIDATES. WE WILL COVER THAT STORY NEXT.
THIS IS BLOOMBERG TECHNOLOGY. ED: ISRAEL CONTINUES TO CARRY OUT STRIKES AGAINST LEBANON STEPPING UP HOSTILITIES AGAINST HEZBOLLAH. THOUSANDS OF PAGERS AND OTHER DEVICES EXPLODING IN LEBANON THIS WEEK MARK A NEW AND DEADLY ESCALATION IN THE USE OF SUPPLY CHAINS AGAINST ENEMIES AND THE URGENCY TO REDUCE DEPENDENCE ON TECHNOLOGIES FROM RIVALS.
YOU HAVE DONE SOME DEEP REPORTING WITH COLLEAGUES ON THIS IDEA THAT PARTICULARLY FOR CHEAP GOODS THAT WHEN YOU GO ACROSS THE SUPPLY CHAIN AND THE ASSEMBLY OF THESE PRODUCTS, THEY PRESENT A RISK BECAUSE THEY CAN BE WEAPONIZED. WHAT DID YOU LEARN? >> IT IS A FASCINATING TOPIC AND OBVIOUSLY WHAT HAPPENED IN LEBANON WITH THESE PAGERS AND WALKIE-TALKIES REALLY CRYSTALLIZED THE ISSUE AND A LOT OF PEOPLE'S MINDS. WE KNEW COMING OUT OF THE PANDEMIC THAT THESE SUPPLY CHAINS WERE A BIG DEAL BECAUSE WE WERE WORRIED ABOUT THE CUT OFF OF CRITICAL PPE AND OTHER THINGS LIKE THAT.
BUT THIS IS TAKING INTO TO A WHOLE OTHER LEVEL. YOU HAVE TO THINK ABOUT THIS IN TWO CATEGORIES. YOU HAVE WHAT HAPPENED IN LEBANON, WHICH IS ACCORDING TO WHAT WE HAVE BEEN ABLE TO ASCERTAIN, ISRAEL HAS NOT CLAIMED RESPONSIBILITY FOR THIS, BUT THE SENSE IS THAT THEY WERE INVOLVED OBVIOUSLY AND THERE WAS A SPECIFIC HACK AND INTELLIGENCE OPERATION THAT HAS BEEN USED IN VARIOUS CONTEXTS FOR A LONG TIME. THIS IS PROBABLY THE MOST
DRAMATIC OUTCOME OF THAT. BUT THAT IS SOMETHING THAT HAS BEEN AROUND FOR A WHILE. THEN YOU HAVE THIS SEPARATE BUT RELATED ISSUE OF SUPPLY CHAINS, HACKING, CRITICAL INFRASTRUCTURE, AND BOTH OF THOSE TWO THINGS COME TOGETHER IN OUR STORY, WHICH EXPLAINS AND LOOKS AT HOW AS SUPPLY CHAINS HAVE BEEN CONCENTRATED IN SOME COUNTRIES LIKE CHINA FOR INSTANCE, THERE IS A VULNERABILITY, BUT AT THE SAME TIME DIVERSE APPLYING -- DIVERSIFYING YOUR SUPPLY CHAIN SCREEDS VULNERABILITY BECAUSE YOU HAVE MORE ENTRY POINTS FOR PEOPLE TO KIND OF EXPLOIT. THERE ARE NOT A LOT OF GREAT OPTIONS, BUT THE ONE THING FOLKS SAID WAS WE JUST NEED MORE VISIBILITY OF THE SUPPLY CHAIN, SO THAT IS ONE OF THE TAKEAWAYS. CAROLINE: LET'S TALK ABOUT THE VISIBILITY BECAUSE MANY WOULD SAY, THE U.S. SAYS THIS, BUT PREVIOUSLY THE U.S. AND SPIES HAVE A HISTORY OF TAKING ADVANTAGE OF THE UNITED
STATES' DOMINANCE IN THE SUPPLY CHAIN. NOW THE SHOE WAS ON THE OTHER FOOT. WHAT CAN BE DONE FOR INVESTMENT BY U.S. COMPANIES TO TRACK THE SUPPLY CHAIN? DANIEL: ABSOLUTELY.
IT IS A GREAT QUESTION. THE U.S. GOVERNMENT HAS BEEN LEANING ON COMPANIES TO GET MORE VISIBILITY INTO THE SUPPLY CHAINS GOING OUT. WHO ARE YOU EXPORTING TO? WHO IS YOUR CUSTOMER AND WHO IS YOUR CUSTOMERS CUSTOMER? THERE IS A BIG PUSH ON THAT FROM THE GOVERNMENT SIDE AND ON CAPITOL HILL A COUPLE OF WEEKS AGO, THERE WAS A BIG HEARING AND INTEL AND TEXAS INSTRUMENTS AND SOME OTHER COMPANIES WERE PRESSED ON THIS. WHAT THEY WERE SAYING WAS IT IS VERY DIFFICULT TO GET THAT KIND OF CLARITY ON NOT JUST TO YOU ARE SELLING TO, BUT WHO THE PEOPLE YOU ARE SELLING TO ARE SELLING TO. AND THEN COMING IN, SAME PROBLEM.
WHEN YOU ARE BUYING A VAST QUANTITY OF THESE TYPES OF MATERIAL, SEMI CONDUCTORS, YOU MAY BE BUYING IT FROM ONE POINT, BUT THAT BAG -- VENDOR IS GETTING IT FROM MULTIPLE POINTS. HIS IS -- IT IS THE DOUBLE-EDGED SWORD. CAROLINE: THAT IS WHERE THE INTERNET OF THINGS COMES IN. WE APPRECIATE YOUR TIME. ONE OF ELON MUSK'S POSTS ON X IS FACING AN INVESTIGATION BY THE SECRET SERVICE. HE TOOK TO X WRITING, "AND NO ONE HAS EVEN TRIED TO ASSASSINATE BIDEN KAMALA." FOR MORE, YOU LEARNED ABOUT THIS INVESTIGATION THROUGH FREEDOM OF INFORMATION ACT REQUESTS TO THE SECRET SERVICE. WHAT DID YOU ASK FOR? >> WELL TO BACK UP FOR A MINUTE, WHEN ELON POSTS THINGS THEY SEE AN INCREDIBLY WIDE AUDIENCE.
HIS TWEETS ARE OFTEN AMPLIFIED BY OTHERS. IT WAS CURIOUS THAT HE POSTED THIS SUNDAY AND DELETED IT. I WAS WONDERING, WHY DID HE DELETE IT? I TWEETED OUT HIM, DID YOU GET A PHONE CALL FROM THE FBI OR SECRET SERVICE? I FILED A REQUEST TO THE SECRET SERVICE ASKING, DO YOU HAVE RECORDS, ARE YOU INVESTIGATING EMAIL CORRESPONDENCE? WHAT IS FUNNY ABOUT FOIA IS THAT USUALLY IT TAKES QUITE A WHILE TO PRY RECORDS LOOSE OR TO GET A RESPONSE, BUT I IMMEDIATELY GOT A RESPONSE WITHIN 24 HOURS. THEY SENT TO ME A RESPONSE AND SIMULTANEOUSLY OUR COLLEAGUE JASON LEOPOLD, THE MASTER OF FOIA REQUESTS, HAD ALSO DONE THE SAME THING. I SAID, I FILED THIS REQUEST.
HE SAID, I DID THE SAME THING. WE GOT VERY SIMILAR RESPONSES. ED: JUST REAL QUICK, I HAVE LOOKED TO YOU SO OFTEN TO TRY TO GET HOLD OF DOCUMENTATION BECAUSE YOU CANNOT HIDE FROM DOCUMENTATION. THE RESPONSE OF THE SECRET SERVICE IS REALLY INTERESTING BECAUSE IN -- I'M GOING TO LOOK DOWN AT MY SCREEN BECAUSE I DON'T WANT TO GET IT WRONG, THAT THEY WITHHELD CERTAIN THINGS BECAUSE DISCLOSURE CAN REASONABLY BE EXPECTED TO INTERFERE WITH ENFORCEMENT PROCEEDINGS. IT IS THAT SENTENCE ALONE THAT LETS US KNOW WHAT IS GOING ON IN THE BACKGROUND BETWEEN MUSK AND THE SECRET SERVICE. DANA: CORRECT, TO BE CLEAR WE SHOULDN'T JUMP TO A CONCLUSION THAT THIS MEANS THERE WILL BE AN ENFORCEMENT PROCEEDING OR A BIG OUTCOME. BUT I THINK THE SECRET SERVICE BY LAW THEY HAVE TO INVESTIGATE ANYTHING THAT COULD BE SEEN AS A CREDIBLE THREAT OR SOMETHING THAT IS A POTENTIAL INCITEMENT TO VIOLENCE. IT IS FAIRLY STANDARD OPERATING
PROCEDURE THAT THEY WOULD LOOK INTO THIS. FOR ME WHAT I WANT TO KNOW IS WHAT HAPPENED BEHIND THE SCENES? WAS HE URGED TO TAKE THIS DOWN BY INVESTORS OR MEMBERS OF HIS FAMILY OR PEOPLE IN HIS INNER CIRCLE? WAS THERE A WHOLE BACK AND FORTH WITH CAMPAIGNS? FOR THAT THE SECRET SERVICE CALL HIM ON THE PHONE AND SAY, THIS IS MAYBE NOT SO GREAT. I WOULD LOVE TO KNOW EXACTLY WHAT HAPPENED IN TERMS OF WHAT INSPIRED HIM TO TAKE IT DOWN BECAUSE HE GOT QUITE A LOT OF BACKLASH AND IT WAS UP SEVERAL HOURS. CAROLINE: THE ART OF REPORTING, THANK YOU. HELEN TIER HAS WON A $100 MILLION CONTRACT THAT WILL EXTEND ACCESS TO AI TARGETING TOOLS FOR MORE U.S.
MILITARY PERSONNEL TO CREATE A PICTURE OF THE SAME BATTLEFIELD ON THOUSANDS OF DIGITAL SCREEN SIMULTANEOUSLY AND IT IS BEING USED BY THE U.S. MILITARY TO IDENTIFY TARGETS FOR AIRSTRIKES IN THE MIDDLE EAST THIS YEAR. ED? ED: COMING UP, WE ARE GOING TO TALK ABOUT MICROSOFT'S ENERGY NEEDS AND HOW IT IS PROMPTING THE REVIVAL OF A DORMANT REACTOR. ALSO, IN LINE WITH THAT STORY, THE NAME BEHIND IT, THAT IS THE NAME BEHIND IT. AND THE STOCK IS UP SIGNIFICANTLY. LET'S GET INTO THE DETAIL NEXT. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: CONSTELLATION ENERGY, THE OWNER OF THE SHUTTERED MILE ISLAND NUCLEAR PLANT IN PENNSYLVANIA. IT IS HITTING RECORD HIGHS IN TERMS OF ITS SHARE PRICE BECAUSE IT IS GOING TO RESTART THE REACTOR AND SELL OUTPUT TO MICROSOFT TO POWER ARTIFICIAL INTELLIGENCE. THERE IS THIS FLURRY OF NEED FOR ENERGY AND WE ARE TURNING TO NUCLEAR NOW? >> ABSOLUTELY. THEY WANT CLEAN ENERGY.
I THINK OFTEN WE TALK ABOUT SOLAR AND WIND. NUCLEAR IS ALSO CLEAN. IT HAS SOME DIFFERENT COMPONENTS. IT IS ALWAYS ON WHILE WIND AND SOLAR ARE MORE VARIABLE. THAT IS A STRENGTH AND WEAKNESS. ONE OF THE REASONS CONSTELLATION HAD SHUT DOWN THE SITE IS BECAUSE THEY DIDN'T HAVE THE CUSTOMER DEMAND ALWAYS ON. FOR GREEN ENERGY, PEOPLE WERE TRYING TO PAIR THINGS WITH SOLAR AND WIND WHICH WERE VARIABLE. IN COMES MICROSOFT WHICH NEEDS
A TREMENDOUS AMOUNT OF ENERGY TO RUN ITS DATA CENTERS. THOSE DATA CENTERS ALWAYS NEED TO BE ON. MICROSOFT ENERGY CHIEF SAID IT IS A GOOD MATCH. ED: IT'S AN INTERESTING DEAL FOR CONSTELLATION.
SHARES ARE UP SIGNIFICANTLY. THEY HAVE TO INVEST $1.6 BILLION, BUT THEY GET A CLIENT TO HIS PLEDGED TO BUY ENERGY FOR 20 YEARS, BUT I GUESS WE HAVE SHORT MEMORIES. I REMEMBER TWO YEARS AGO WOULD NOT JUST MICROSOFT, BUT AMAZON AS WELL HAD VERY AMBITIOUS ENERGY TARGETS. HOW MUCH IS THIS A PRIORITY FOR MICROSOFT? DINA: THIS HAS BEEN A REAL ISSUE FOR THEM. THEY STILL HAVE THESE DATA
TARGETS. IT IS THEIR PLEDGE TO BE CARBON NEGATIVE BY 2030. THEY TOLD US THE DEAL DOES NOT HELP THEM ON THE HARDEST PROBLEM. THE BIGGEST REASON THEY ARE WORRIED ABOUT THEIR CARBON NEGATIVE BY 2030 GOAL IS EMBODIED ADMISSIONS FROM CONCRETE, STEEL, AND CHIPS, WHICH ARE USED IN THESE DATA CENTERS. THIS PART OF THE DEAL TODAY, THAT DOES NOT HELP THEM WITH THAT. THAT IS A HARDER PROBLEM. ED: AN IMPORTANT DEAL, BUT ALSO IMPORTANT DEVELOPMENT IN THE WORLD OF AI. LET'S FOCUS ON THE XBOX SIDE OF
MICROSOFT'S BUSINESS AND HOW ITS PRESIDENT IS LAYING THE GROUNDWORK FOR THE COMPANY'S NEXT CONSOLE IN A BID TO CATCH UP TO SONY AND NINTENDO. THIS IS A DEEP DIVE INTO THE RELATIVE OUTSIDER, BUT NOW INTO WHAT IS A MASSIVE GAMING COMPANY OR ARM, SHE IS REALLY IMPORTANT. WHAT IS SHE TRYING TO DO? >> SARAH BOND IS TRYING TO MOVE THE XBOX BUSINESS BEYOND THE XBOX CONSOLE. THEY HAVE BEEN SELLING CONSULS TO THE SAME GLOBAL HOUSEHOLDS AND THEY WANTED TO MEAN MORE THAN THE PLASTIC BOX. SARAH BOND'S MANDATE IS TO EXPAND THE GAMES INTO PHONES AND NEXT-GENERATION HARDWARE AND HANDHELD.
CAROLINE: YOUR STORY IS SO FASCINATING. ALSO HER HISTORY AT T-MOBILE. WHAT IS SHE GOING TO BRING TO THE TABLE, CECELIA? CECILIA: SARAH BOND'S HISTORY FROM T-MOBILE GIVES MICROSOFT EXPERTISE IT WAS LACKING IN THE MOBILE WORLD AND THE MOBILE GAMING WORLD IN PARTICULAR. AT T-MOBILE, SHE KNOWS A LOT ABOUT SUBSCRIPTIONS AND HOW TO KEEP PEOPLE COMING BACK TO A PRODUCT AND HOW TO TRIM SUBSCRIPTIONS IN A WAY WHERE USERS DON'T FEEL BLOATED BY EXTRA SERVICES THEY DON'T NEED. MICROSOFT HAS A NETFLIX GAME
SERVICE CALLED THE GAME PASS THAT HAS 34 MILLION SUBSCRIBERS, PROBABLY MORE AT THIS POINT BECAUSE THAT DATA IS OLD, AND SARAH BOND IS HOPING TO REACH GAMERS WHO WANT A SUBSCRIPTION PRODUCT USING GAME PASS, WHICH WILL BE AVAILABLE ON PHONES, PCS, TABLETS, XBOX, SMART DVDS, WHATEVER YOU HAVE. XBOX HOPES TO BE THERE. ED: A BIG IMPETUS FOR THE ACTIVISION DEAL WAS MOBILE GAMING AND I HAVE YET TO SEE THE STORY THERE. WHAT IS IT? CECILIA: IT IS A LITTLE CHALLENGING BECAUSE WHEN MICROSOFT ANNOUNCED ACTIVISION GLOBAL WAS THE FASTEST GROWING SITE IN THE GAMES INDUSTRY, GLOBAL CONSUMER SPENDING ON MOBILE GAIN -- GAMES DROPPED BY 2%. IT IS STILL OVER A $100 BILLION INDUSTRY, BUT PC GAMES IS THE FASTEST GROWER THIS YEAR.
IT IS GOING TO BE A LITTLE CHALLENGING FOR SARAH TO MAKE GOOD ON THE ACTIVISION ACQUISITION. AT THE SAME TIME, SHE HAS HIGH HOPES BECAUSE SOME ANY PEOPLE HAVE MOBILE PHONES. CAROLINE: IT IS A GREAT REPORT, WE THANK YOU. WE THANK YOU. COMING UP, OPENAI'S LATEST FUNDRAISING IS NEARLY DONE. SOME INVESTORS WILL FIND OUT CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO.
CAROLINE: OPENAI'S LATEST FUNDRAISING IS NEAR COMPLETION WITH PROSPECTIVE INVESTORS SET TO FIND OUT TODAY WHETHER THEY WILL BE PART OF THE DEAL, ACCORDING TO SOURCES. EVERYONE WANTING IN ON THIS? >> CERTAINLY A LOT OF VENTURE FIRMS ARE AND STRATEGIC'S. WE HAVE REPORTED MICROSOFT, WHICH IS IN AN -- EXISTING INVESTOR, WILL BE PUTTING IN MORE.
ALSO NVIDIA AND APPLE AND A SLEW OF OTHER INVESTORS ARE TRYING TO PUT MONEY IN. THEY WILL FIND OUT TODAY AFTER IT WAS OVERSUBSCRIBED BY BILLIONS OF DOLLARS. ED: WHAT I FIND INTERESTING, A SOURCE TOLD ME A COUPLE OF WEEKS AGO THAT NVIDIA WAS ONLY GOING TO PUT IN SAY $100 MILLION AND THERE ARE OTHER REPORTS OF A FRESH HOLD. IT IS NOT A SURPRISE THAT THE MOST IMPORTANT AI COMPANY IN THE WORLD HAS INVESTORS OF ALL KINDS FIGHTING TO GET OVER A RELATIVELY RARE ROUND. KATIE: SURE. THEY RAISED AN 86 BILLION DOLLARS VALUATION LAST YEAR. IT IS A SIGNIFICANT PREMIUM TO THAT.
THERE IS NO QUESTION THERE IS A LOT OF DEMAND TO BE IN THIS TRANSFORMATIVE AI COMPANY. BUT AT WHAT PRICE? THAT WAS THE REAL QUESTION. THEY HAVE CERTAINLY HAD PLENTY OF DEMAND AT THIS 100 $50 BILLION FREE MONEY VALUATION. CAROLINE: THAT WAS QUITE THE LIQUIDITY EVENT FOR THE EMPLOYEES. PHENOMENAL AT THE RATE THAT THEY MANAGED TO RAISE. HOW IMPORTANT IS THIS STRATEGIC
SIDE OF THIS? HOW MUCH DOES OPENAI WANT THIS? KATIE: IT IS GOOD TO HAVE TRILLION DOLLAR COMPANIES IN YOUR COURT CERTAINLY. IT REMAINS TO BE SEEN WHAT EXACTLY THEY HAVE IN MIND, WHAT KIND OF PARTNERSHIPS THEY WANT TO EXPAND UPON. BUT YEAH, I THINK IT IS A VERY COMPETITIVE RACE TO BE THE LEADER IN AI AND IF YOU HAVE COMPANIES LIKE MICROSOFT, APPLE, AND NVIDIA BETTING ON YOU, IT MAKES YOU EVEN MORE COMPETITIVE. CAROLINE: KATIE ROOF, WE THANK YOU. ANOTHER SIDE OF AI IS ITS REGULATION. THE UNITED NATIONS EXPERT GROUP SAYS AI GOVERNMENT DISCUSSIONS HAVE BEEN TOO FRAGMENTED. IT JUST CAME OUT WITH A REPORT SUGGESTING MEASURES LIKE ESTABLISHING A FUND TO SUPPORT POORER COUNTRIES THE KING TO WORK ON ARTIFICIAL INTELLIGENCE AND CALLING ON COMPANIES TO LIMIT MILITARY USE OF AI TO PREVENT HUMAN RIGHTS VIOLATIONS.
WE SAT DOWN WITH THE PRESIDENT OF LATVIA AND ASKED HIM WHETHER AI SHOULD BE MORE REGULATED. >> THE USE OF SOCIAL MEDIA ARTIFICIAL INTELLIGENCE FOR THIS INFORMATION, INTERFERENCE AND ELECTIONS, I THINK WE NEED SOME FRAMEWORK. AT THE SAME TIME AND THIS IS SOMETIMES A CHALLENGE FOR THE EUROPEAN UNION, SOMETIMES IT GETS OVERLY REGULATORY. ED:
LET'S KEEP THE CONVERSATION GOING WITH THE NYU PROFESSOR EMERITUS GARY MARCUS WHO IS KNOWN FOR HIS CRITIQUE OF THE BOOMING AI INDUSTRY. HE IS THE AUTHOR OF A NEW BOOK CALLED "TAMING SILICON VALLEY: HOW WE CAN ENSURE AI WORKS FOR US." BASED ON THE IDEA OF FRAGMENTATION OF REGULATION, I ALWAYS THINK ABOUT HOW AI TECHNOLOGY IS REQUIRED TO EXPECT THE LAWS AND RULES OF JURISDICTIONS OR BORDERS. WHAT DO YOU MAKE OF THE
PREAMBLE? GARY: I THINK WE CERTAINLY ARE FRAGMENTED. WHEN WE THINK ABOUT GLOBAL AI, THERE IS THAT FRAGMENTATION. YOU THINK ABOUT HOW EXPENSIVE IT IS TO TRAIN THESE MODELS. YOU SAW MICROSOFT BUYING THE RIGHTS TO THE ENERGY OF THREE MILE ISLAND.
IT IS VERY EXPENSIVE TO TRAIN THESE MODELS, THAT WOULD BE AN INSANE AMOUNT OF POWER. ESPECIALLY WHEN YOU TALK ABOUT MAKING MODELS 10,000 TIMES BIGGER THAN EXISTING MODELS. IT IS A PROBLEM FOR THE WORLD. NONCONSENSUAL DEEPFAKE PORN, MISINFORMATION, AND SO FORTH.
BUT FRAGMENTATION IS THE DEFAULT. CAROLINE: LET'S TALK ABOUT COORDINATIONS. THE UNITED NATIONS WANT AN INDEPENDENT SCIENTIFIC PANEL ON ARTIFICIAL INTELLIGENCE. IS THAT GOING TO HELP OR MAKE
SURE MORE PEOPLE ARE AT THE TABLE OTHER THAN THE G7 AND SOME OF THE BIGGEST COMPANIES IN THE WORLD? GARY: I THINK IT IS A GOOD START. WE NEED MORE INDEPENDENT SCIENTISTS WEIGHING IN. WE NEED AUTHORITY IF SOMETHING DOESN'T WORK TO DO SOMETHING. ONE OF THE MOST INTERESTING
THING IS OPENAI PUT OUT A NEW MODEL AND THEY SAID THERE IS A BIO WEAPONS RISK. THEY MIGHT BE RIGHT OR WRONG ABOUT THAT, BUT LET'S SUPPOSE THEY ARE RIGHT. THEY DECIDED DESPITE THAT RISK THEY WOULD GO AHEAD AND RELEASE IT. THAT WAS ULTIMATELY SAM ALTMAN'S DECISION, NOBODY ELSE'S. THERE WAS SENATE TESTIMONY
EARLIER IN THE WEEK WHERE A FORMER BOARD MEMBER SAYS THEY DIDN'T FEEL LISTENED TO. OPENAI, SAM ALTMAN DOESN'T HAVE TO LISTEN. THEY SAY THE BIO WEAPONS RISK IS SERIOUS, HE CAN GO AHEAD ANYWAY AND SAY, I NEED TO MAKE BACK THE MONEY FOR THE $150 BILLION VALUATION, WHICH IS NOT A TRIVIAL THING. THERE IS NO OUTSIDE INPUT. THERE IS NOTHING IN THE U.N. THAT CAN IMMEDIATELY DO ANYTHING ABOUT IT. IT IS A VERY GOOD THOUGHT EXPERIMENT. WHO IS MAKING THESE DECISIONS?
CAROLINE: THIS HAS HAPPENED TIME AND AGAIN AND WE ALWAYS GO, THEY SHOULD SELF REGULATE. IN A WAY, SAM ALTMAN DID JUST THAT. YOU ARE COUGHING A BIT BASICALLY EXHAUSTED HAVING WRITTEN THIS BOOK IN TWO MONTHS OUT OF SHEER ANGER IN A WAY. WHAT IS THE RESPONSE? WHAT IS THE ANSWER? GARY: THE ANGER IS PARTLY I WENT TO THE SENATE, I TESTIFIED NEXT TO SAM ALTMAN AND HE TALKED ABOUT NOT JUST SELF-REGULATION, BUT REAL REGULATION. THE SENATE, BIPARTISAN ALL TALKED ABOUT THIS. NOTHING HAS ACTUALLY HAPPENED. THERE HAS BEEN NO MAJOR PIECE
OF LEGISLATION IN THE UNITED STATES TO DEAL WITH ANY OF THIS. SELF-REGULATION IS NOT GOING TO HAPPEN. EVEN WHEN THEY MAKE PROMISES, THEY OFTEN BACKED DOWN.
THEY WILL AGREE TO THINGS LIKE INFORMATION SHARING, THEY WILL NOT AGREE TO DEFERRING THE DECISION ABOUT WHETHER TO RELEASE THE NEW PRODUCT THAT MAY BE FINALLY MAKES THEM SOME MONEY TO THE GENERAL PUBLIC. THEY ARE NOT MAKING MONEY RIGHT NOW. OPENAI HAD A $5 BILLION OPERATING LOSS LAST YEAR. ED: LET'S GO BACK TO WHAT YOU JUST SAID ON OPENAI, IT IS NOT A TRIVIAL AMOUNT OF MONEY, BUT THE STAKES ARE ALSO VERY HIGH. HOW MUCH DOES THAT KEEP YOU UP AT NIGHT THAT WE HAVE A SINGLE COMPANY WITH QUITE A CONFUSING GOVERNANCE STRUCTURE THAT HAS THE WORLD'S BIGGEST TECHNOLOGY COMPANIES AND INVESTORS FIGHTING OVER AND AROUND AND IT IS RELEASING TECHNOLOGY AT A CADENCE YOU OUTLINED. GARY: EVERYBODY SHOULD HAVE BEEN WORRIED AT THE DRAMA LAST YEAR. IT MADE FOR AN AMAZING NETFLIX SPECIAL OR SOMETHING LIKE THAT WHEN SAM ALTMAN WAS FIRED AND REHIRED.
IT ALSO SAYS, WHO IS RUNNING THIS COMPANY AND WHAT ARE THE CHECKS AND BALANCES? THE ULTIMATE ANSWER IS SAM IS RUNNING IT AND THERE ARE NO CHECKS AND BALANCES. AND WE SHOULD BE WORRIED. IF THE COMPANY CANNOT EVEN GOVERN ITSELF INTERNALLY, A LOT OF PEOPLE LEFT AFTER THAT INCIDENT, WE SHOULD BE WORRIED. IT IS A LOT OF POWER.
WE SHOULD BE WORRIED NOT JUST ABOUT OPENAI, BUT THE WHOLE INDUSTRY. RESPONSIBLE AI WAS A WATCHWORD FOR THE ENTIRE FIELD FOR A FEW YEARS AND NOW IT IS ALMOST LIKE NOBODY REALLY CARES BECAUSE THERE IS SO MUCH MONEY ON THE TABLE. ED: WE HAD THE PRESIDENT OF LATVIA HEAR FROM THE EUROPEAN UNION. DO YOU HAVE ANY HOPE THAT THESE ROUNDTABLE STATE-LEVEL DISCUSSIONS WILL YIELD SOME KIND OF FRAMEWORK IN WHICH THE WORLD IS KEPT SAFE FROM AI? GARY: I HAVE A MILD BIT OF HOPE, BUT THE PUBLIC HAS TO SAY THIS MATTERS. THEY GET A LOT OF MONEY FROM THE TECH COMPANIES.
THE MOST IMPORTANT THINGS WE CAN DO OR ONE OF THE MOST IMPORTANT THINGS WE CAN DO, THINK ABOUT WHAT HAPPENED WAS SOCIAL MEDIA, WE WAITED TOO LONG AND WE ENTRENCHED A SET OF PRODUCT THIS IS THAT NOW LEAD TO ALL KINDS OF POLARIZATION, BAD FOR TEENAGE GIRLS AND SO FORTH AND IT IS HARD TO FIX THESE THINGS. WE HAVE TO GET AI POLICY RIGHT NOW. CAROLINE: SO GOOD TO HAVE YOU. WE APPRECIATE IT. ED, WHAT ARE YOU LOOKING AT? ED: I THINK WE SHOULD REFLECT THE WEEK IN MARKETS. I'M LOOKING AT THE MAG 7 INDEX. WE NOW KNOW WHERE WE STAND WITH RATES BEING CUT BY 50 BASIS POINTS GOING LOWER. THERE IS A VALUATION QUESTION AROUND SOME OF THOSE THAT HAD INCREDIBLE PERFORMANCE IN THE FIRST HALF OF THIS YEAR AND THEN THERE IS THE IDEA OF WHAT HAPPENS IF WE DO OR DON'T GET A RECESSION? IT VERY CLOSELY MIRRORS THE NASDAQ 100.
A LOT OF THE BIGGEST POINTS DRIVERS ARE THE MAG 7 ANYWAY. IT IS INTERESTING TO KEEP OUR EYE ON THE TRAJECTORY. COMING UP IN THE PROGRAM, WE WILL HEAR FROM SALESFORCE CEO MARC BENIOFF AS THEY LAUNCH NEW AI TOOLS AT DREAM FORCE. THIS IS BLOOMBERG TECHNOLOGY. TECHNOLOGY PODCAST ON THE TERMINAL, ONLINE, APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG.
CAROLINE: SALESFORCE IS LAUNCHING A SLEW OF NEW TOOLS. EMILY CHANG SPOKE WITH MARC BENIOFF . MARC: THESE CUSTOMERS HAVE BEEN CONVINCED OF SOMETHING THAT IS NOT TRUE, THAT THEY HAVE TO GO TO A HYPER SCALER OR GET A DATABASE, THAT THEY HAVE TO BUY A SECURITY TECHNOLOGY, THAT THEY HAVE TO CHOOSE A CHIP, THEY HAVE TO HOOK IT ALTOGETHER THEMSELVES, THEY HAVE TO DIY THERE AI. IT IS NOT TRUE. YOU DO NOT HAVE TO DIY YOUR AI. WHEN WE STARTED THE SHOW, THEY DIDN'T REALLY BELIEVE IT. SO THAT IS WHY WE CREATED A WHOLE FACTORY ACROSS THE STREET, AS YOU SAW IN MOSCOW ONLY WEST, WHERE WE PUT MORE THAN 10,000 CUSTOMERS THROUGH ALREADY TO SHOW THEM THAT ON THE SALESFORCE PLATFORM, WHICH THEY HAVE ALREADY BEEN COMMITTED TO FOR MORE THAN 20 YEARS, HAVE HAD GREAT SUCCESS IN SALES AND SERVICES AND MARKETING AND COMMUNICATIONS AND COMMERCE AND ANALYTICS AND SLACK AND IN ALL OF THESE TECHNOLOGIES, THAT NOW THEY ARE ALSO BUILDING AI AND THIS IS A SHOCK TO THEM.
WE ARE FUTURE PROOFING THEIR COMPANY WITH THE SALES FLOOR -- SALESFORCE PLATFORM. >> WHAT MODELS HAVE YOU BILLETED ON? MARC: THEY DON'T NEED TO KNOW. WHAT CHIP IN MY USING? WHAT HYPER SCALER IN MY USING? THEY DON'T CARE.
THEY DON'T CARE WHAT I'M USING. WHAT TYPE OF FLOWERS IN THE CAKE? WHAT KIND OF SUGAR DID I BUY AT THE STORE? WHY DOES IT MATTER? DO YOU LIKE THE CAKE? IS THIS THE FINAL PRODUCT YOU LIKE? OUR CUSTOMERS DON'T WANT TO KNOW ALL THE PIECES. THEY WANT TO KNOW, DOES THIS WORK AND CAN THEY MAKE A GREATER SUCCESS FOR THEIR OWN COMPANIES? ED: THAT WAS THE SALESFORCE CEO MARC BENIOFF. STAYING WITH SALESFORCE, IT'S INVESTMENT ARM JUST ANNOUNCED A $500 BILLION INVESTMENT FIRM FOR AI THAT IS EXPANDING. HERE TO DISCUSS IS THE SALESFORCE VENTURES PRESIDENT. YOU BASICALLY INVEST NOW WITH ALMOST LIKE $1 BILLION OF CAPITAL TO PLAY WITH AND YOU ARE LOOKING FOR THINGS TO ADD TO WHAT MARC BENIOFF WAS JUST TALKING ABOUT.
YOU ARE LOOKING FOR THE NEXT FRONTIER OF AN ACTUAL GENAI TOOL. >> EXACTLY. WE FEEL THAT AI IS ONE OF THE MOST SIGNIFICANT INNOVATIONS IN OUR LIFETIME AND WE ARE LOOKING FOR ENTREPRENEURS WHO ARE HELPING TO SOLVE BUSINESS CHALLENGES IN UNPRECEDENTED WAYS THAT AI ALLOWS THEM TO DO SO. LAST YEAR, WE ANNOUNCED A $500 MILLION FUND. WE INVESTED IN 24 COMPANIES
WITH THAT MONEY AND WE DECIDED TO EXPAND IT WITH UP TO $1 BILLION TO INVEST IN THIS VERY EXCITING AI INNOVATION. ED: WE JUST LISTENED TO MARC BENIOFF TALK ABOUT WHY SALESFORCE'S OFFERING IS BETTER THAN ANY COMPANY OF ANY SIZE ENGAGING WITH THE GPU PROVIDER RIGHT THROUGH TO APPLICATION. IT SOUNDS LIKE THEY ARE PRETTY HAPPY WITH WHAT THEY HAVE TO OFFER. HOW CAN YOU GO IN FIND SOMETHING NEW THAT SALESFORCE DOESN'T ALREADY HAVE? JOHN: WE ARE SEEING INTERESTING COMPANIES DEVELOP NEW BUSINESS APPLICATIONS THAT ARE IN NEW AREAS. FOR EXAMPLE, WE INVESTED IN A COMPANY CALLED RUNWAY.
IF YOU ARE FAMILIAR WITH THE OSCAR AWARD-WINNING FILM EVERYTHING EVERYWHERE ALL AT ONCE, THEY USED RUNWAY TECHNOLOGY TO TAKE THEIR EDITING STAFF FROM NORMALLY HUNDREDS OF PEOPLE EDITING THIS VERY COMPLEX MOVIE DOWN TO A HANDFUL OF PEOPLE USING THEIR TECHNOLOGY. THIS IS REAL PRODUCTIVITY VALUE BEING DELIVERED. WE ARE SEEING INTERESTING DEVELOPMENTS IN NEW MODELS AND IN NEW VERTICAL APPLICATIONS IN AI SECURITY. IN AREAS THAT WE DO NOT COVER TODAY, BUT WE WANT TO PARTNER WITH THESE COMPANIES AND DELIVER MORE SOLUTIONS TO OUR CUSTOMERS. CAROLINE: YOU ARE NOT LISTED AS ONE OF THESE IN OPENAI.
WHY ARE YOU NOT? JOHN: WE PARTNER WITH OPENAI AND ANTRHROPIC AND OTHER LANGUAGE -- LARGE LANGUAGE MODEL PROVIDERS AND WE HAVE OUR OWN LARGE LANGUAGE MODEL. WE ARE VERY EXCITED ABOUT WHAT WE HAVE INVESTED IN. WE HAVE AN OPEN SOURCE PROVIDER OF MODELS. WE HAVE ANOTHER PROVIDER. WE FEEL PRETTY GOOD ABOUT THE INVESTMENTS WE HAVE MADE IN THE FOUNDATIONAL MODEL LEVEL. NOW WE ARE LOOKING TO INVEST IN DIFFERENT TYPES OF COMPANIES WITH THIS NEW $500 MILLION FUND. CAROLINE: WHAT IS SO INTERESTING IS FOUR OF SALESFORCE'S LAST FIVE ACQUISITIONS HAVE BEEN FUNDED AT SOME POINT BY SALESFORCE VENTURES. HOW MUCH DO YOU END UP
REALIZING YOU SHOULD BUY THESE COMPANIES, NOT JUST STRATEGICALLY INVEST IN THEM? JOHN: ONE OF THE BENEFITS OF INVESTING IN THE COMPANY FIRST IS THAT YOU DO GET A CHANCE TO WORK WITH THEM AND SEE HOW THE TECHNOLOGY CAN HELP DELIVER SUCCESS TO YOUR CUSTOMERS. WE DO PARTNER VERY WELL WITH A LOT OF THE COMPANIES WE INVEST IN. BUT KEEP IN MIND, WE HAVE MADE INVESTMENTS IN OVER 630 COMPANIES OVER THE PAST 15 YEARS. WE HAVE ONLY ACQUIRED 20 OF THE COMPANIES WE HAVE INVESTED IN. SO, IT IS A VERY SMALL MINORITY OF THE BUSINESSES WE HAVE INVESTED IN, BUT WE ARE VERY EXCITED ABOUT SOME OF THE RECENT ACQUISITIONS WE HAVE MADE OUT OF THE FUND. COMPANIES THAT DO INCENTIVE COMPENSATION MANAGEMENT.
AIRKIT IS A BIG FOUNDATIONAL ELEMENT OF OUR ASIAN FORCE TECHNOLOGY. WE ACQUIRED THEM LAST YEAR. THE FOUNDER IS A TWO-TIME BOOMERANG BACK TO SALESFORCE. WE ARE REALLY EXCITED TO HAVE HIM. ED: TENS OF THOUSANDS HAVE DESCENDED ON OUR CITY FOR DREAM FORCE.
I HAVE ALWAYS THOUGHT ABOUT IT AS A CUSTOMER EVENT. I KNOW LOADS OF PEOPLE WHO WORK AT SALESFORCE OR THEY USE CRM. WHAT HAS THE WEEK BEEN LIKE FOR YOU IN TERMS OF UNEARTHING INTERESTING FOUNDERS AND STARTUPS THAT YOU MIGHT WRITE A CHECK FOR? JOHN: I THINK THIS WEEK IS ONE OF THE MOST EXCITING WEEKS I HAVE EVER BEEN IN SAN FRANCISCO. THE ENERGY IN THE CITY IS REALLY PALPABLE AND YOU ARE SEEING CIO'S AND C-SUITE EXECUTIVES MEETING WITH ENTREPRENEURS AT DREAM FORCE. WE HAVE OVER 45,000 PEOPLE IN PERSON.
FROM MY PERSPECTIVE -- ED: I KNOW, THE TRAFFIC WAS DREADFUL LAST NIGHT. THANK YOU VERY MUCH. [LAUGHTER] JOHN: I GOT TO MEET WITH SOME FASCINATING FOUNDERS WHO ARE REDEFINING THE WAY AI WILL WORK IN THE FUTURE IN SOLVING CRITICAL BUSINESS CHALLENGES. VERY EXCITED ABOUT WHAT I SAW THIS WEEK. CAROLINE: IT WAS GREAT TO HAVE SOME TIME WITH YOU, JOHN. THE SALESFORCE VENTURES. COMING UP, THE RELUCTANCE TO ADOPT EV'S ISN'T UNIVERSAL.
WE WILL HEAR FROM A CEO ABOUT HOW COMMERCIAL CUSTOMERS ARE AHEAD OF THE CURVE ON THE EV TRANSITION. THIS IS BLOOMBERG TECHNOLOGY. >> THE MAN HAS BEEN REALLY STRONG. IN THE U.S., WE HAVE HAD INCREDIBLE LARGE INFRASTRUCTURE PROJECTS GOING ON. THE OVERHAUL OF THE GRID.
TELECOM. EVERYTHING IS BEING DELIVERED, BOTH SERVICES AND IN GOODS. THIS HAS CREATED WHOLE NEW SETS OF BUSINESS FOR US. WE SEE INCREDIBLE DEMAND ACROSS ALL OF OUR VEHICLE LINES. CAROLINE: THE FORD PRO CEO TALKING ABOUT ACCELERATING COMMERCIAL ADOPTION OF EV'S. HE IS THERE AT THE OUTSET OF A NEW AND REVAMPED WALL STREET WEEK WITH DAVID WESTIN, WHO JOINS US. THE HOST OF THAT SHOW WE ARE
ABOUT TO BE ABLE TO WATCH IN FULL LATER ON. DAVID: HE IS A FRIEND OF THE SHOW. CAROLINE: HE IS SUCH A CHARACTER. THE DEMAND SEEMS INSATIABLE, HE SAYS. DAVID: HE HAS ALWAYS BEEN SOMEWHAT RAH RAH. BUT THE THING I DIDN'T REALLY UNDERSTAND UNTIL I GOT OUT THERE IS THERE ARE TWO STORIES ABOUT EV'S. ONE OF THEM IS THE CONSUMER
SIDE, WHICH IS SLOWING DOWN AROUND THE WORLD. THEN THERE IS THE COMMERCIAL SIDE, THESE DELIVERY VANS AND EMERGENCY VEHICLES, AND THAT IS JUST AS ROBUST AS EVER. FORD HAS A SIGNIFICANT ADVANTAGE IS THAT IT HAS A 40% MARKET SHARE IN THAT MARKET. ED: THE THING YOU LEARN ABOUT THE
INDUSTRY IS THAT IS COMPLICATED. HOW DO WE TAKE THAT TO WALL STREET WEEK? THERE IS ALWAYS A MONEY STORY BEHIND EVERYTHING. THERE IS A CULTURE STORY BEHIND IT. HOW ARE YOU GOING TO TELL US THAT? DAVID: IT IS THE LARGER STORY, YOU ARE EXACTLY RIGHT. THE QUESTION IS, WHAT DOES THIS MEAN FOR A DETROIT AUTO INDUSTRY TRYING TO REBOUND FROM SOME VERY DARK DAYS? GOING TO THE BRINK OF EXTINCTION DURING THE GREAT FINANCIAL CRISIS. WHAT DOES THAT MEAN?
THEY THINK THE EV IMPETUS WILL DRIVE THEM. THEY ARE HAVING TROUBLE ON THE CONSUMER SIDE, BUT FORD IS RELYING HEAVILY ON THE COMMERCIAL SIDE. IS THIS A GOOD INVESTMENT OR NOT? IS THIS SOMEPLACE YOU WANT TO PUT YOUR MONEY OR NOT, INTO THIS RESURGENT AUTO INDUSTRY? ONE OF THE THINGS WE TALK ABOUT HIS CHINA AND CHINA COMING ON THE SCENE AND THE HIGH-QUALITY, LOW-COST, SOMETHING HE SAYS IS A LITTLE BIT LIKE TOYOTA. HE IS TO WORK AT TOYOTA, EVEN THOUGH HE COMES FROM DETROIT.
HE SAW THOSE BATTLE DAYS. CAROLINE: FASCINATING. CHINA IMPORTANT TO HIGHER EDUCATION. YOU DELVE INTO THAT. THE BUSINESS OF RESTAURANTS. YOU DON'T WANT TO MISS IT. WALL STREET WEEK LATER WITH DAVID WESTIN AT 6:00 P.M. NEW YORK TIME. THAT DOES IT FOR BLOOMBERG
TECHNOLOGY. ED: WHAT A WEEK IN TECHNOLOGY.
2024-09-23 07:12
