Bloomberg Technology 09/21/2023
FROM THE HEART OF WHERE INNOVATION, POWER AND MONEY COLLIDE IN SILICON VALLEY AND BEYOND THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM HEADQUARTERS IN NEW YORK, AND I AM ED LUDLOW. CISCO MAKES A 28 BILLION DOLLARS DEAL AND WHAT IT MEANS. ED: WE WILL TALK ABOUT THE HEALTH OF THE IPO MARKET. CAROLINE: PLUS, THE LATEST IN THE MEDIA WORLD. RUPERT MURDOCH STEPS DOWN. THAT AND SO MUCH MORE. WE HAVE HAD THE FEDERAL
RESERVE, HAWKISH NARRATIVE. WE LOOK AT THE BANK OF ENGLAND AND THEY MADE A AS WELL. THE NASDAQ IS DOWN A QUARTER OF A PERCENT. 10-YEAR GILTS IS PUSHING UP .06. WILL THE FED HAVE TO HIKE LATER THIS YEAR? THE POUND IS DOWN .37%.
THIS IS A STORY OF DOLLAR STRENGTH. AFTER THE JOBLESS DATA, WHERE 2% ON BITCOIN. WHAT DO YOU HAVE? ED: MICROSOFT IS HOLDING AN EVENT HERE IN DOWNTOWN NEW YORK WE GET COPILOT, LATER IN THE SHOW WE WILL BRING YOU THOSE DETAILS. MICROSOFT UP BY .2%. GOOGLE CLOUD IS GOING TO DITCH BROADCOM BY 2027. IT IS CUSTOM SOLELY CAN, SO THEREFORE BROADCOM IS MOVING DOWN 3.6%. CISCO IS GOING TO 157 PER SHARE. THAT'S A 30% PREMIUM ON THE
CLOSING PRICE OF SPLUNK THAT'S UP 21%. SO NETWORK --. CAROLINE: IS THIS A GOOD DEAL DESPITE THE AMOUNT? >> SPLUNK HAD BEEN A TARGET FOR CISCO SINCE JANUARY 2022, IT WAS RUMORED THEY HAD MADE AN OFFER IT AT THAT POINT. THEY WORK THROUGH AND 9-12 MONTH DEAL BUT THIS IS WHAT WE POINTED OUT FOR SOME TIME. THIS IS STRATEGIC FOR CISCO. WHEN YOU LOOK AT WHAT THEY WILL DO AROUND CLOUD SECURITY. IT MERGES THE WORLD BETWEEN APP EXPERIENCES WITH THE SECURITY SIDE AND FILLS A BIG HOLE IN THE SECURITY PORTFOLIO THAT WE HAVE POINTED OUT FOR A LONG TIME.
SPELUNKING IS THE BACKBONE OF INFORMATION CENTERS. AND THEY NEEDED TO PUSH THE ENVELOPE A LITTLE MORE BECAUSE IT WAS REALLY LACKING. ED: THIS TRANSACTION WILL CLOSE IN 9-12 MONTHS IN THE CEO OF SPLUNK WILL JOIN THE TEAM. YOU GAVE A GOOD EXPLANATION OF
WHAT THEY BRING TO CISCO. WHAT IS SPLUNK? JIM: WHAT SPLUNK IS NAMED DR. SPELUNKING, AND THIS IS GOING AFTER DATA AND BEING ABLE TO USE SEARCH THROUGH IT.
YOU CAN SEARCH THROUGH ALL OF YOUR DATA AND BE ABLE TO FIND WHAT IS GOING ON INSIDE YOUR ENVIRONMENT WHICH IS WHY IT'S SO IMPORTANT FROM AN SECURITY TOOL. IT'S ABOUT PERFORMANCE MANAGEMENT, WHETHER IT BE IN THE CLOUD AS WE SWITCH TO THAT ENVIRONMENT TO MANAGE ACROSS THAT ENVIRONMENT. ED: WE KNEW THAT, WE WERE JUST CHECKING. JIM: YOU'RE A SMART GUY. ED: I DON'T KNOW ABOUT THAT. JIM: CHUCK THINKS IT WILL BE 9-12 MONTHS. IN TERMS OF REGULATION, THERE WILL BE A LONGER.
ON OTHER DEALS. YOU ARE STARTING TO SEE THINGS GO FOR CISCO AND SPLUNK THERE'S A LITTLE BIT OF OVERLAP. THERE REALLY ISN'T MUCH ON THE SECURITY SIDE. FROM THE APPLICATION EXPERIENCE IN THE SECURITY INCIDENTS, WHILE CISCO IS A DECENT SIZE PLAYER, THE TWO COMBINED IS STILL PART OF THIS FRAGMENTED SET OF THE INDUSTRY BUT NOT AN ANTITRUST ISSUE. CAROLINE: WHAT IS THE COMPETITIVE LANDSCAPE THAT SPLUNK GOES AGAINST? JIM: M&A CAN BE DISRUPTIVE TO THE BUSINESS BEING BOUGHT.
AND POTENTIALLY ACT AS A TAILWIND FOR COMPETITORS. DATA DOG HAS BEEN DOING GOOD THINGS AND CLOUD OBSERVABILITY. AND CONSIDERED ONE OF THE LEADERS IN THAT OBSERVABILITY SPACE. WHEN YOU STACK UP WHAT SPLUNK COULD DO FOR CISCO, IT DOES MAKE IT A RELATIVE COMPETITOR IN THE SPACE. CISCO HAS A HUGE REACH AND THEY TALKED ABOUT IT ON THE CALL THIS MORNING, ABOUT TWO THIRDS OF SPLUNK OF THE MARKET WHERE CISCO CAN PENETRATE THEIR NEARLY MILLION CUSTOMERS WITH SPLUNK'S OFFERINGS. ED: THANK YOU FOR TELLING US ABOUT THE DEAL AND WHERE IT FITS IN THE LANDSCAPE. COMING UP ON THE SHOW WE WILL
TURN TO M&A TO IPO'S. JEFF THOMAS WILL JOIN US NEXT. CAROLINE: LET'S CHECK ON HOW THE IPO'S ARE FARING. A TINY GAIN, BUT IS STILL REMAINING OPEN. FROM NEW YORK, THIS IS BLOOMBERG. CAROLINE: WE WILL TAKE YOU OVER TO A LIVE EVENT THAT IS TAKING PLACE IN LONDON. THE GLOBAL CREDIT FORUM, THEY ARE DESCRIBING PRIVATE CREDIT.
CREDIT IS IMPORTANT TO OUR VIEWERS AND TECHNOLOGY. ED: CAPITAL IS IMPORTANT TO ANY TECH COMPANY. APPLE AND MEADOW RETURNED TO THE MARKET.
I JUST WANTED TO REMIND OUR VIEWERS, TECH COMPANIES IN DEBT, PAY ATTENTION. CAROLINE: MEANWHILE, THIS COMES IN A GLOBAL NARRATIVE, WHEN YOU THINK OF THE IPO LANDSCAPE. LET'S GET A LITTLE TIP FROM ABIGAIL DOOLITTLE. ABIGAIL:
WE DID HAVE IPO POPS FOR ARM AND INSTACART. HERE IS ARM GIVING BACK ITS 24%. DOWN EACH SUBSEQUENT DAY, DOWN 1.7 MISTAKE. WHETHER OR NOT THIS IPO WINDOW IS HEALTHY? WE WILL SEE INSTACART THIS UP .42%. WHILE WE QUESTION IF THESE POPS ARE GOOD ENOUGH IF WE LOOK AT WHAT HAPPENED IN THAT PANDEMIC WE HAD AIRBNB UP, BUMBLE UP AND POLISH UP AS WELL.
THE POPS ARE NOT QUITE AS STRONG . HAVE WE BREACHED THE IPO WINDOW? MORE NEEDS TO BE SEEN. ED: SONALI SAID YESTERDAY THAT THE IPO'S ARE ENDING.
BUT THAT'S NOT QUITE TRUE. ABIGAIL: IT WILL HAVE A LOT TO DO WITH THIS MACRO, THE MACRO ENVIRONMENT RELATIVE TO THE FED IS NOT SO GREAT. I WOULD ALSO POINT TO BACK IN THE DAY THERE WAS A COMPANY THAT IPO IN THE FEW MONTHS THIS DOG ABSOLUTELY TAINT. IT WAS DOWN MORE THAN 50% AND THEN IT CAME BACK IN A BIG WAY AND IT'S UP MORE THAN 700%. ANY TAKERS ON WHY THIS IS? ED: I WASN'T AROUND THEN. ABIGAIL: IT WAS MEADOW. PREVIOUSLY KNOWN AS FACEBOOK
HAD A FEW DIFFICULT FIRST FEW MONTHS. BUT WHEN WE LOOK AT WHAT THEY'VE DONE SINCE THAT IPO, NOT SO SHALL BE GIVEN LAST YEAR. IT REALLY CAME BACK. IT'S TOO EARLY TO SAY WHAT'S HAPPENING WITH THESE IPO'S. ED: THAT'S WHY PEOPLE SAY THEY ARE A LONG-TERM INVESTOR.
BLOOMBERG'S ABIGAIL DOOLITTLE. LET'S STICK WITH THE IPO MARKET AND BRING IN OUR NEXT GUEST. IT HAS BEEN A BUSY FEW DAYS WITH THREE LISTINGS, SOME ON THE NASDAQ AND SOME ON THE NEW YORK STOCK EXCHANGE. JEFF, I WANT TO START BY ASKING YOU, WE SAY HERE ON BLOOMBERG TECHNOLOGY THAT THE EUPHORIA OF OPENING UP WAS SHORT-LIVED IS THAT YOUR CONCLUSION AS WELL? JEFF: COMPANIES LOOK AT THE IPO IS A MOMENT IN TIME.
IF YOU LOOK AT WHAT IS HAPPENING THIS WEEK, WE HAVE A HAWKISH CAUSED BY THE FED. THEY PAUSED RATES BUT HAD HAWKISH OVERTONES AND THAT WILL DRIVE DOWN SOME OF THESE STOCKS. WE HAVE SOME GREAT COMPANIES TO GET OUT OF THE MARKET IN Q4 IN THE FIRST HALF OF NEXT YEAR. THERE IS A LOT OF REASONS TO BE OPTIMISTIC. INDICES ARE WELL UP FOR THE
YEAR AND COMPANIES SET OF RAISE CAPITAL IN 2020 AND 2021 HAVE PRETTY HEALTHY EVALUATIONS. THEY WILL NEED TO RAISE CAPITAL SO THAT WILL BE A CHOICE, DO THEY WANT TO DO IT PRIVATELY OR IN THE PUBLIC MARKETS. THEY EXPECT MANY WILL COME TO THE PUBLIC MARKETS. CAROLINE: LAST WEEK ON THE DAY OF THE ARM LISTINGS IN THE F1 FILINGS, HOW MANY OF THOSE COMPANIES WILL HAVE TO USE THE PLAY WE HAVE JUST SEEN CORNERSTONE INVESTORS TO GET THAT POP AND THEN ALREADY AT THE DOWNSIDE. JEFF: COMPANIES WILL WANT THESE LONG-TERM INVESTORS.
WHEN YOU LOOK AT THE OPENING CROSS, WE ARE BRINGING TOGETHER BUYERS AND SELLERS. THE ONLY PEOPLE WHO CAN SELL ARE PEOPLE THAT TOOK ADVANTAGE OF THE IPO. THAT IS WHY WE SEE THIS STABILIZATION. A LOT OF TIMES IT'S FLESHING OUT THE SELLERS AND THOSE WHO ARE LOOKING FOR THE STOCK IN THE LONG TERM SHAREHOLDERS THEY BRING THROUGH THE IPO. CAROLINE: I'M INTERESTED FOR WHO WANTS TO SEE THAT DEMAND? IS IT PEOPLE WITH RETAIL INTEREST OR LARGER INSTITUTIONS THAT WANT TO TAKE THAT RISK? JEFF: IT'S THE INSTITUTIONAL INVESTORS I WILL BE THE BIGGEST BUYERS OF IPO'S. IF YOU LOOKED AT HOW 2021 PERFORMED, THAT'S HOW A LOT OF THE INVESTORS WERE HOPING TO. THEY WILL BE LOOKING FOR WAYS
TO DIFFERENTIATE WHICH MEANS HE WILL HAVE TO TAKE SOME RISK. WE SEE A LOT OF DEMAND ON THE BUYER SIDE. WHEN COMPANIES COME TO THE MARKET THEY ADJUST EVALUATION TO MEET THE EXPECTATION OF THE MARKET. AND ALSO POSSIBLE GROWTH VERSUS GROWTH AT ALL COSTS. ED:
THAT THERE'S BEEN ANY COMMENT IT HAS BEEN THE QUANTIFYING OF THE SMALL FLOWS. SOME OF THESE IPO'S SEEMED OVER PRESCRIBED? WHY IT IS THEY'RE THE SAME KIND OF DEMAND THREE DAYS FROM THE TRAINING IN? JEFF: THERE WERE ALWAYS BE BUYERS AT DIFFERENT PRICE LEVELS. COMPANIES ARE LAYING OUT THEIR VISION FOR THE FUTURE. THEY SAY HERE'S WHERE WE CAN GET TO IN TERMS OF REVENUE, EARNINGS SO THE INVESTORS WILL BE WATCHING AND THE FIRST FEW DAYS BUT ALSO THE FIRST FEW QUARTERS.
CAN THEY COME OUT OF THE GATE STRONG? CAN THEY GET THEIR NUMBERS IN THE FIRST FEW QUARTERS? AND THAT WILL DIFFERENTIATE THE START UP MARKET. CAROLINE: WE TALKED ABOUT LONG-TERM INVESTORS. THANK YOU SO MUCH, COMING UP, WE WILL GO BACK INTO THE WORLD OF PRODUCT LAUNCHES. MICROSOFT WILL BE ROLLING OUT IS AI ASSISTANT. WE COULD LEARN WHAT THE PRICE POINT MIGHT BE. ED: TAKE A LISTEN TO WHAT THE MICROSOFT PRESIDENT HAD TO SAY ABOUT A YARD REGULATION AT THE UNITED NATIONS IN NEW YORK CITY. THIS IS BLOOMBERG.
>> IS THE CONCERN THAT AI WILL GO BAD, OUT OF CONTROL AND A THREAT TO HUMANITY. WHEN YOU STEP BACK AND THINK ABOUT IT THERE ARE SPECIFIC USE CASES WHERE ONE SHOULD BE THINKING ABOUT THAT. ENABLING AI TO AUTOMATE AND CONTROL THE ELECTRICAL GRID OR THE WATER SUPPLY OR DRIVERLESS CARS. WHEN YOU THINK ABOUT IT FROM THAT PERSPECTIVE WE WOULD SAY, ED: JAPANESE ELECTRONIC COMPANY TOSHIBA IS CLEARING A NEW PATH TO GO PRIVATE AND RECEIVE A 13.5 BILLION BUYOUT FROM A PRIVATE EQUITY FIRM THAT NOW HOLDS 8% OF EQUITY SHARES.
THEY WILL SQUEEZE OUT THE REMAINING SHAREHOLDERS TO TAKE CONTROL OF THE COMP THE. GOOGLE IS THINKING OF DROPPING QUALCOMM. CAP GOOGLE WILL SET OUT A GOLD TO MOVE AWAY FROM BROADCOM AFTER THE COST OF ITS TYPE. IN THE LAST FEW MINUTES GOOGLE ISSUED A STATEMENT SAYING IT SEES NO CHANGE IN ITS RELATIONSHIP WITH BROADCOM. NVIDIA IS BETTING ON INDIA BECOMING A KEY COUNTRY FOR AI. CAROLINE: THIS WEEK WE HAVE HAD SO MUCH, GOOGLE AND OTHERS IN A GREAT AI OFFERINGS.
THE COMPANY WILL START ROLLING OUT ITS AI ASSISTANTS AND IT WILL BE WIDELY AVAILABLE. WE WILL BE BRINGING IN NOW, THE MANAGING DIRECTOR. HOW WILL THEY BE ABLE TO INTEGRATE TECHNOLOGY THAT QUICKLY INTO ITS OWN SOFTWARE? >> IT SHOWS US THAT MICROSOFT HAS A TIMELINE. WE ARE TALKING 40 YEARS UNTIL OFFICE 365 COPILOT COMES OUT. MICROSOFT IS CLEARLY MOVING QUICKLY.
THERE ARE TWO THINGS THAT REALLY COME OUT FOR THIS FOR ME. MICROSOFT IS INTEGRATING ALL OF THESE ASPECTS. THERE IS AN INTEGRATIVE AI EXPERIENCE ACROSS MICROSOFT PRODUCTS. THE SECOND THING IS, HOW IS MICROSOFT ABLE TO MOVE SO FAST? THEY HAD A HUGE HEAD START BECAUSE THEY INVESTED IN OPENAI BACK IN 2019. MICROSOFT WAS THINKING ABOUT GENITIVE AI BEFORE CHATGPT BECAME A HOUSEHOLD NAME. ED: YOU POINTED OUT THAT THEY ARE INTEGRATING THEIR EXISTING PLATFORMS. MICROSOFT IS ALWAYS BEEN REALLY GOOD AT SELLING
SOFTWARE THAT OTHERS GIVE AWAY FOR FREE. DO THEY GROW SALES BY DOING THIS , THIS INVESTMENT NAI? RISHI: THERE WILL BE CERTAIN AREAS WHERE THEY WILL NOT DIRECTLY CHARGE FOR GENERATIVE AI. IT WILL BE ABOUT GAINING MARKET SHARE.
WHEN YOU THINK ABOUT THE 365 COPILOT THAT IS SOMETHING THEY WILL DISTINCTLY CHARGE FOR. A LOT OF THESE OTHER AI OPEN SOURCE AI, IT'S BASED ON A CONSUMPTION MODEL. I THINK THIS TRANSLATES TO BETTER NUMBERS FOR MICROSOFT. MICROSOFT IS ALREADY DOING MORE THAN HALF $1 BILLION OF GENERATIVE AI REVENUE TO QUARTERS LATER AND THAT NUMBER WILL PROBABLY GET TO THE 2, 5, 10 BILLION BEFORE WE KNOW IT. CAROLINE: THE SECOND HALF OF THE FISCAL YEAR WHERE THIS WILL WRAP UP. THANK YOU SO MUCH.
COMING UP WE WILL TALK ABOUT THE REGULATION OF AI. WE WILL BE DIGGING INTO IT WITH JOE WHITE. ED: CHECK THIS OUT, AND THE MONTH OF AUGUST YOU SEE THE REVENUE DROPPED 12%. AS WE WORRY ABOUT IPHONE SALES, THIS IS BLOOMBERG. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED: LET'S GET A QUICK CHECK ON THE MARKETS. THE FED AND ECONOMICS IS
DRIVING THESE MARKETS. THE NASDAQ 100 IS DOWN 100 IS DOWN 1.3%. THE FED PAUSED RATES AND WE GET ECONOMIC DATA THAT REINFORCES THIS IDEA THAT THE FED WILL LEAVE RATES HIGHER FOR LONGER. AI IS A DIFFERENT STORY. MICROSOFT AND AMAZON.
MICROSOFT GOT MUCH OF ITS GAIN BECAUSE OF ITS RELEASE OF THE AI PRODUCTS. AMAZON IS REALLY ACCELERATING DOWN 3.5%. IT ANNOUNCED ITS GENERATIVE AI PRODUCT. IT REALLY DIDN'T DO MUCH IN PERSUADING INVESTORS TO BUY RIGHT NOW. THE IDEA THAT THEY BROUGHT AI TO THEIR HARDWARE OFFERING. CAROLINE:
LET'S TALK ABOUT AI BLEEDING INTO EVERYTHING. AT THE UN'S GENERAL ASSEMBLY, YOU HAVE CLIMATE CHANGE BUT WE HAVE ALSO BEEN HAVING MORE TECH ISSUES. THEY CALLED ON COUNTRIES TO REGULATE ARTIFICIAL INTELLIGENCE SO IT DOES NOT GOVERN US.
FORMER PRIME MINISTER TONY BLAIR SPOKE TO OUR DAVID WESTIN. >> AA WILL CHANGE EVERYTHING, IT SHOULD CHANGE THE WAY GOVERNMENT AND PUBLIC SERVICES OPERATE. IT HAS ENORMOUS POTENTIAL TO CHANGE HEALTH CARE FOR THE BETTER. BUT THERE IS RISK. CAROLINE: ALL OF THIS COMES AS WE PREPARE OURSELVES FOR THE U.K. TO HOLD ITS FIRST GLOBAL AI SUMMIT. LET'S TALK ABOUT THE AI
PRESENCE AND U.K.. YOU ARE IN SAN FRANCISCO, TRYING TO EXPORT THE U.K. AND THE SELLER CAN'T TECH GIANT SAYING THIS IS WHAT THE U.K. HAS TO OFFER. WHY IS THE U.K. SO FOCUSED ON PUTTING IN STAKE IN THE GROUND WHEN IT COMES TO AI? >> THE UA, THE U.K. HAS AN ENORMOUS AMOUNT OF
RESEARCH AROUND AI. THE REASON AI WILL HELP UNLEASH THE POSITIVE CHANGE IN THE WORLD . TO GET A COMMON UNDERSTANDING WILL KEEP US SAFE WITH THIS TECHNOLOGY. ED: DOES THE U.K. GENERATE NEARLY -- GENUINELY BELIEVE THAT THE SHIP HAS SAILED WITH AI OR IS IT MOVING QUICKLY TO CATCH UP? >> I THINK IT HAS A LEADERSHIP POSITION AND IT.
A LOT OF FUNDAMENTAL RESEARCH IS BEING DONE IN THE U.K.. WE ARE SEEING THAT NAI, TALENT IS EXTRAORDINARY IN THE U.K. HAS QUITE A LEAP GLOBALLY AND CAN BRING COUNTRIES ACROSS THE WORLD TO SPEAK ABOUT SOME OF THESE RISKS AND ISSUES WHILE STILL HAVING ITS OWN POSITION IN THE AI RACE WITH COMPANIES BASED IN THE U.K.. ED: CAMBRIDGE ONE IS ONE OF THE
BIGGEST STATE AGENCIES AS WELL AS IN VIDEO -- NVIDIA. I KNOW U.K. HAS BARCODE WITH THESE COMPANIES HAVE YOU SPOKEN WITH NVIDIA ABOUT THE WORK THEY PLAN TO DO IN THE U.K.? JOE: WE DO TALK WITH PLATFORM PROVIDERS AND CHIP SUPPLIERS TO TALK ABOUT THE U.K.'S NEEDS AND MAY NEED TO INCREASE THE
COMPUTER CAPACITY WE HAVE IN THE U.K.. WE ARE LOOKING FOR AN AI SUPERCOMPUTER IN THE AI TASK FORCE FOR AI SAFETY RESEARCH. ED: JEREMY HUNT DECIDED TO INVITE THE CHINESE DELEGATION TO THE AI SAFETY MEETING DO YOU AGREE WITH THAT? JOE: I THINK IT WILL BE A GLOBAL BENEFIT AND CHALLENGE AND IT IS TECHNOLOGY THAT WILL BE BROADLY ACCESSED IN THE U.K. RECOGNIZES FOR US TO GET THE BENEFITS WE WANT WE HAVE TO HAVE A BASELINE OF TECHNOLOGY. WE HAVE INVITED CHINA TO THE SUMMIT. IT'S UP TO THEM TO DETERMINE IF THEY WILL COME AND ENGAGE.
THERE ARE COMMON ISSUES WE ALL AGREE ON IN THE U.K. CAN BRING PARTIES TOGETHER TO REACH THAT BASELINE. CAROLINE: I WAS TALKING YESTERDAY ABOUT AI REGULATION, AND HE ALMOST CALLED IT HER FRIEND SEE. YOU HAVE THE G7 MEETING IN NOVEMBER AND IN JAPAN THE HIROSHIMA AI PROCESS. YOU JUST HAD THE GOVERNMENT CONVENING WITH AI CEOS.
IS THERE A RUSH OF DISCUSSION WITH NOTHING HAPPENING? JOE: THE U.K. IS IN TOUCH WITH ALL OF THESE ORGANIZER OF ALL THESE EVENTS. WHEN SUNAK AGREED WITH BIDEN IT WAS BASED ON WHITE HOUSE COMMITMENTS AND THE SPECIFIC DETAILS OF THE RISK AND CHALLENGES. THINGS LIKE THE RISK POSED BY
FRONTIER MODELS. THIS WILL BUILD ON THE PROMISES MADE BY THE WHITE HOUSE AND HOW IT'S BEING OPERATIONALIZED BY THE COMPANIES. CAROLINE: IT'S ALL COMING BACK TO REGULATION AND WHERE DOES THE U.K. FIT WITHIN THAT? YOU HAVE SEEN CHINA STRUGGLE WITH EASY REGULATION. YOU HAVE THE STRICTER EU PUSHING REGULATION THROUGH QUICKLY AND THEN YOU HAVE SEEN A CMA FLIP-FLOP.
HOW DO YOU SEE TECH COMPANIES VIEWING U.K. REGULATIONS? JOE: IT HAS A REAL STRENGTH AS REGULATORS. THAT'S WHY WE SEE SENSIBLE, AND GAZED REGULATION.
WE HAVE INDEPENDENT REGULATORS. THE U.K.'S HISTORY AND PROCESS OF LAW AND ENGAGEMENT, YOU HAVE SEEN THIS ARTICLES PUBLISHED THIS YEAR. THERE WILL BE SPECIFIC AI REGULATION ISSUES IN THAT SECTOR AND IT WILL BE OUR ABILITY TO ADAPT WITH NAI.
IT'S NOT THAT WE NEED TO CREATE STRICTER RULES THAT WILL PROVE TO BE OUT OF DATE QUICKLY. ED: YOU HAVE A DEVELOPING POSITION FROM THE U.K. AND AN OUTGOING MESSAGE FROM SAN FRANCISCO. WHAT IS THE BIGGEST QUESTION
YOU GET FROM THEM? THE INBOUND, ABOUT WHAT THE U.K. SHOULD OFFERED? JOE: THE U.K. IS THE FIRST NATURAL EXPANSION POINT FROM THE U.S.. THE U.K. IS THE FIRST PLACE CHOO SEN TO GO INTO. I THINK FOLKS SEE THE U.K. IS THE FIRST NATURAL CHOICE
EXTERNALLY. THEY DO SEE THE U.K. IS HAVING A FANTASTIC TECH SECTOR THAT'S VALUED AT MORE THAN ONE TRILLION.
THEY RECOGNIZE THE TALENT AND THE REGULATORY CAPACITY THERE SO THEY ARE KEEN TO SEE HOW THE U.K. WILL DEVELOP ITS POSITION THERE. ED: JOE, WE REALLY APPRECIATE HAVING YOU ON BLOOMBERG TECHNOLOGY. WE WILL BE JOINED BY MACON CHOICE AND KIRSTEN GREEN FOR MORE ON THAT CONVERSATION, COMING UP NEXT.
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THE JOY OF ATTACK-ASSISTANT. SIRI, ALEXA.
WITH RECENT AI ADVANCEMENTS, WE HAVEN'T AI PERSONAL ASSISTANT. THEY PHRASED 25 MILLION ON THURSDAY. MEGAN, IT'S GREAT TO HAVE YOU.
I START WITH YOU, WE'VE BEEN TALKING ABOUT PERSONAL ASSISTANCE, LIKE COPILOT THEY ARE BEING RUN AND BUILD ON OPENAI UNDERLYING TRADITIONAL MODELS. WHAT MAKES TEARS DIFFERENT? MEGAN: WHAT MAKES DUCKBILLED UNIQUE IS BE COMBINED TWO THINGS, THE BEST OF HUMANS TO ADD NUANCE TO YOUR TASKS NAI TOOLING THAT ALLOWS EFFICIENCY AND THE SCALE OF THE UNDERLYING LEGWORK. THE PERSONAL ASSISTANCE ARE PUT TO TASK AND THEY USE CUSTOM AI TOOLING WITH LARGE LANGUAGE MODELS AND OUR OWN FINE TUNING TO FULFILL TASKS.
BUT THAT ALLOWS US TO DO IS TACKLE THE LONG TO DO LIST, WHERE AI COMES AGAINST LIMITS A HUMAN GETS ONLINE. CAROLINE: YOU HAVE MADE THE NAME BACK IN COMPANIES THAT BLEW OUT BECAUSE OF THE CONSUMER. HOW IS DUCKBILLED SETTING ITSELF APART? >> AS YOU MENTIONED, THERE IS A TREMENDOUS AMOUNT OF ACTIVITY IN THE VENTURE INDUSTRY IS EXCITED ABOUT AI AND WHAT HE CAN DO FOR TECHNOLOGY. THERE ARE TWO MAJOR WAYS THAT COMPANIES ARE APPROACHING AI. ONE IS THE FOUNDATION OF AI FOR THE INDUSTRY AND THE OTHER IS IMPLEMENTING AI FOR BETTER BUSINESS EFFICIENCIES AND OFFERING NEW SERVICES. DUCKBILL FALLS INTO THE LATTER. THIS NOTION OF A DIGITAL
ASSISTANT HAS BEEN ON PEOPLE'S BUYING FOR A LONG TIME. IF ONLY I COULD HAVE HELP WITH MY TO DO LIST. I NEVER SEE THE BOTTOM OF MY TO DO LIST. THE FIRST GENERATION OF SIRI AND ALEXA DELIVERED VALUE ALONG THOSE LINES BUT THEY HAVE GOTTEN NOWHERE NEAR WHERE THE AMBITIOUS HELP THERE. IN THE CASE OF DUCKBILL HAS THE INNOVATION OF AI AND HUMANS IN THE LOOP.
THAT REALLY FEELS LIKE IT CHANGES THE GAME FOR THE CONSUMER IN MAKING AN OFFERING LIKE AN AI-ASSISTED OR DIGITAL ASSISTANT VALUABLE. AND IT ENABLES A BUSINESS MODEL WE THINK A SCALABLE AND COMPELLING. ED: THE DAY AFTER MY WIFE HAS LEFT A POSTED NOTE AND I THINK IF ONLY I COULD DO THOSE THINGS. BUT DUCKBILL IS $99 A MONTH. HOW DID YOU ARRIVE AT THAT? MEGAN: WE FOUND OVER THE COURSE OF OUR YEAR-LONG DATA THAT IS THE PRICE POINT WE COULD SUPPORT UNLIMITED TASK FOR THE VAST MAJORITY OF USERS. WE LOOK AT IT LIKE THE UBER BLACK VERSION OF WHAT DUCKBILL IS TODAY MOVING TOWARDS A MASS-MARKET PRODUCT BUILT ON THE LEARNINGS OF THAT PREMIUM OFFERING.
WHAT WE ARE EXCITED ABOUT HIS CONTINUING TO SERVE MORE AND MORE PEOPLE WITHOUT PREMIUM PRICE POINT SUBSCRIPTION AND LEARNING FROM THAT TO SERVE THE PEOPLE WHO NEED IT THE MOST. THE MASS MARKET, THE PEOPLE WHO CANNOT AFFORD A PERSONAL ASSISTANT THEY DESERVE HELP JUST LIKE ANYBODY ELSE. ED: SORRY TO JUMP IN. I FIND THAT CONCEPTS COMPELLING. WHAT WILL YOU BE ADVISING MEGAN
TO DO IN THE FIRST FEW MONTHS AS THEY GET OFF THE GROUND? KIRSTEN: THE BEST PART OF THE PROCESS WAS GETTING A CHANCE TO WORK WITH MEGAN. I AM LOOKING FORWARD TO LEARNING WITH HER AND FROM HER AND AS WE MENTIONED EARLIER, THE QUESTION POSED ABOUT THIS IS A CONSUMER PRODUCT? MEETING THE CUSTOMERS NEED, I HOPE THAT OUR YEARS OF EXPERIENCE IN LOOKING INTO THE HEADS OF CONSUMERS IN WORKING WITH OUR GREAT FOUNDERS AND PRODUCTS IS SOMETHING WE CAN DO HERE AT DUCKBILL ALSO. UBERBLACK IS THE START WITH THE VISION IS TO REACH A MASS AUDIENCE AND HELP PEOPLE NAVIGATE THEIR LIVES ON THE INTERNET MORE EFFECTIVELY. THE IDEA OF REIMAGINING SERVES. IT HASN'T BEEN REIMAGINED FOR 20 YEARS. I DO THINK THE COMPANIES THAT BROUGHT US THOSE SERVICES ARE WELL RESOURCED WITH REALLY SMART PEOPLE AND THEY ARE THINKING ABOUT AI MAKING THEIR PRODUCTS AND SERVICES BETTER.
THEIR BUSINESS MODELS RELY ON AS AND IN MANY WAYS THAT'S NOT CUSTOMER ALIGNED AND THERE'S A CHANCE FOR A COMPANY TO TAKE ON THIS IDEA OF BEING AN ENTRY POINT TO THE INTERNET AND CONTEXTUALIZING SEARCH AND DISCOVERY AND EXECUTION. CAROLINE: WE BROUGHT UP WITH YOUR EXPERIENCE WITH GM AND THE U.S. AND CANADA. YOU KNOW HOW TO BUILD? WILL THIS MONEY GO TOWARDS TALENT? ARE YOU LOOKING FOR TALENT WAS SEARCH OGS? MEGHAN: WE'VE LEARNED AN ENORMOUS AMOUNT OPERATING A DATA IN THIS FUNDING WILL ALLOW US TO TAKE THE ROADMAP WE'VE LAID OUT AND ACCELERATED. OUR MISSION IS TO SERVE THE MASS-MARKET, TO LEVERAGE AI TO HELP THE TIDE RISES WITH ALL BOATS AND IS NOT THE PRIVILEGE OF SOMEONE BENEFITING FROM AI BUT DOES EVERYONE HAVE ACCESS TO IT.
WE WILL BE INVESTING TO GET TO THAT MISSION EVEN FASTER FOR THE COMING MONTHS AND YEARS. ED: THANK YOU SO MUCH. COMING UP ON THE SHOW, CAN THE HOLLYWOOD STRIKE BEE STING MIND AT THE END OF THE TUNNEL. ED: THE COUNTRY'S OLDEST AND LARGEST ORGANIZATION, HAVE SUED AI FOR COPYRIGHT INFRINGEMENT.
IT'S ACCUSED OF SYSTEMATIC THEFT, LARGE SCALE. THERE ARE SEVERAL AUTHORS INCLUDING J RR MARTIN. THEY BELIEVE AUTHORS SHOULD BENEFIT FROM AI TECHNOLOGY AND OPTIMISTIC THEY WILL FIND MUTUALLY BENEFITS TO AR. CAROLINE: I WONDER WHAT THE AUTHOR OF GAME OF THRONES IS THINKING, AND WE GO TO WRITERS REPRESENTING MOVIE STUDIOS. NETFLIX, NBC, WE HAVE HAD A FEW FALSE STARTS IN THE LIGHT AT THE TUNNEL HERE? >> THEY LAST HAD A SUBSTANTIVE CONVERSATION IN AUGUST, STUDIOS OFFERED SOME REAL ADVANCES BUT IT WASN'T ENOUGH BUT THEN IT BROKE AND DID NOT MAKE ANY PROGRESS. THE STUDIOS HAVE MADE ANOTHER OFFER ON WEDNESDAY WITH THE MEETING ON THURSDAY MORNING WHERE THE WRITERS ARE EXPECTED TO COUNTER.
TODAY'S NEGOTIATION WILL DETERMINE A LOT? WE COULD SEE A DEAL RELATIVELY QUICKLY AND IF THEY DON'T AGREE, THEY WON'T. ED: RUPERT MURDOCH HAS STEPPING DOWN WITH LOCKLIN MURDOCH TAKING OVER ON NEWS CORE. WHAT IF WE LEARNED? >> WE ARE WATCHING THE SLOW BUT INEVITABLE HANDOFF FROM RUPERT ONE OF THE GREAT MEDIA MOGULS OF OUR AGE WHATEVER YOU THINK OF HIM TO HIS SON LACHLAN WHO HAS TAKEN MORE AND MORE RESPONSIBILITY. THIS IS BIG NEWS BUT NOT
SHOCKING. HE IS AND IS 90'S. THERE HAS BEEN RUMORS ABOUT HIS HEALTH BUT NOTHING CONFIRMED. HE IS GIVING HIS SON MORE AND MORE OF A PRESENCE OF THE COMPANY. CAROLINE: SUCCESSION AND REAL LIFE. MEANWHILE, THAT IS IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
ED: YOU CAN LISTEN TO THIS BROADCAST ON PODCASTS. CAROLINE: WE WILL GO BACK TO THE BLOOMBERG GLOBAL CREDIT FOR THEM. REMEMBER, THIS IS THE CO-CEO ON 6TH STREET. TAKE A LISTEN. >> I THINK AGAIN, RECOVERIES IN DEFAULT, THEY HAVE THE ABILITY TO ACTIVE MANAGE IN THE SECOND THING IS, THE DOCUMENTS SEEM TO BE TIGHTER AND THE RECOVERY WILL BE HIGHER BECAUSE THERE IS LESS ON THE MARGINS.
I THINK PRIVATE CREDIT HAS WAYS TO WIN, STRUCTURAL WAYS TO WIN BETWEEN INDUSTRY TELL AND PRIVATE CREDIT SHOULD PROVE WELL. >> THIS WORKS WELL WITH OUR QUESTION, BUT WILL PERFORM BEST OVER THE 12 MONTHS, CLO'S, DISTRESSED DEBT, PRIVATE CREDIT? CAROLINE: WE GOT CLOS . >> THUS WITH ONE PERSON VOTING. NOW WE HAVE TWO PEOPLE VOTING.
2023-09-28 18:12
