Hedge Fund Exposure to Tech Hits Record High | Bloomberg Technology
I'M JOE MATHIEU IN WASHINGTON. >> 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: WELCOME TO BLOOMBERG TECHNOLOGY.
I'M CAROLINE HYDE LIVE FROM NEW YORK. >> I'M ED LUDLOW IN SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: LOOKING AT HEDGE FUND EXPOSURE TO TECHNOLOGY HITTING A RECORD HIGH WHEN WE GET TO THE OUTLOOK FOR TECH INVESTING. >> PLUS WE HEAR FROM THE YOUTUBE CEO ON HIS PLANS TO MAKE THE VIDEO PLATFORM EVEN BIGGER. CAROLINE:
WE SIT DOWN WITH THE CEO OF RING FOR FOR -- FOR HER FIRST BROADCAST INTERVIEW AFTER A MISSION STATEMENT. FIRST WE CHECK IN ON THESE MARKETS AND WE ARE STRUGGLING WITH THE MACRO PICTURE RIGHT NOW. WE ARE SEEING A WALL OF MONEY FROM THE SUPPLY SIDE TO THE BOND MARKET WE HAVE A BIG OPTION FOR THE SEVEN YEAR DEBT.
AND REMEMBER AUCTION APPETITE WASN'T THAT GREAT FOR THE LAST COUPLE OF DAYS SO WE SEE THE NASDAQ BEING PULLED DOWN. THE STOXX 600 IN EUROPE DOWN, IT'S NOTABLE THERE BOUNCING OFF THEIR LOWS. DOWN THREE TENSE OF A PERCENT. IT'S REALLY OTHER INDUSTRY GROUPS UNDER PRESSURE TODAY. THAT SEVEN YEAR YIELD KICKING UP 4.62 SEEING THE LONGER AND SET OFF HARDER. I DON'T WANT TO GIVE US THE RISK APPETITE WHEN IT COMES TO THE TECH WORLD.
CRYPTO UNDER PRESSURE A LITTLE BIT TODAY. BITCOIN TO THE DOWNSIDE BUT NOT BY MUCH. 67,500 IS WHERE WE TRADE. FOR SOME CAUTIOUS SENTIMENT AT THE MOMENT. ED: I'M LOOKING AT THE U.S. LISTING SHARES OF THE EV MAKER BYD. IT'S A PRETTY BIG STORY OUT OF CHINA.
THEY HAVE ANNOUNCED A HYBRID DRIVETRAIN THAT'S CAPABLE OF DOING MORE THAN 1200 MILES OR 2000 KILOMETERS ON A SINGLE CHARGE ON THE TANK. IT'S A HYBRID DRIVETRAIN AND ITS CONTINUED TO BOOST THEIR U.S. LISTING SHARES. IT'S GOT A LOT OF PEOPLE TALKING ON SOCIAL MEDIA. LEARNING MORE ABOUT WHAT THEY ARE DOING. THE OTHER BIG MOVER IN THE UNITED STATES IS APPLE.
APPLE BOUGHT MORE THAN A PERCENTAGE POINT FOR THIS SESSION. W WDC INVITES WENT OUT. THE BIG NEWS IS ALSO OUT OF CHINA, A COURT IN CHINA HAS DISMISSED THE CASE AGAINST APPLE THE CONSUMER HAD BROUGHT ON THE ISSUE OF APP STORE FEES AND COMMISSIONS AND INAPT FEES AND COMMISSION. WE WILL GO TO BLOOMBERG'S MARK GURMAN. IT MIGHT SOUND LIKE A FAMILIAR STORY BECAUSE IT'S HAPPENING IN THE UNITED STATES THIS TIME THE CHINA SIDE OF THAT DISCUSSION. CAROLINE: ALL OF THIS IN A PICTURE OF HOW BIG TECH BEHEMOTHS HAVE BEEN PERFORMING AT THE MOMENT. WE KNOW APPLE'S UNDER PRESSURE FOR THE LAST COUPLE OF MONTHS REALLY BUT HEDGE FUNDS POSITIONING MORE BROADLY.
WE FIND A NEW RECORD HIGH. STRONG EARNINGS REPORT LAST WEEK. GOT INTO GOLDMAN SACHS PRIME BROKERAGE SAYING THE MAGNIFICENT SEVEN IS NOW ACCOUNTING FOR CLOSE TO 21% OF HEDGE FUNDS TOTAL EXPOSURE. A SENTIMENT CHECKED ON BIG TECH ALLOCATION AND COMPANIES GOING PUBLIC. GLOBAL HEAD OF TECHNOLOGY
INVESTMENT IS WITH US. YOU HAVE SO MUCH WEALTH OF EXPERIENCE AND EXPERTISE IN THE INVESTMENT BANKING MARKET. IN PARTICULAR FOCUS YOU OF COMPANIES GOING PUBLIC GRADE WHAT'S THE SENTIMENT OF ACCESS TO GROWTH COMPANIES IN THE U.S.
RIGHT NOW? KRISTIN: IF YOU LOOK AT THE 500 OR SO TECH COMPANIES PUBLIC RIGHT NOW THAT ARE TO BILLION DOLLAR CAP -- MARKET CAP, THERE ARE LESS THAN 30 THAT HAVE GROWN 30% IN THE LAST YEAR SO THE OPPORTUNITY TO INVEST IN GROWTH ISN'T REALLY THERE IN THE PUBLIC MARKET. THE BID FOR IPO'S IS THERE FROM THE INVESTOR SIDE BUT WE HAVEN'T SEEN THAT TRANSLATE INTO MUCH ACTIVITY THIS YEAR PARTIALLY BECAUSE OF THE RATE ENVIRONMENT AND CORPORATE'S ARE LOOKING MORE TO 2025 AS A YEAR OF OPTIMISM IN THE MARKET. >> WE HAD THAT CONTEXT OF THE DAY WITH YIELD PUSHING HIGHER FOR LONGER.
WE SEE GERMAN BOND YIELDS PUSHING HIGHER, IT LOOKS LIKE INFLATION IS HARD TO CURTAIL. IS IT JUST THE RATE ENVIRONMENT, IS THERE ALSO POLITICAL ISSUES? IS THAT WHY 2025 WILL BE THE YEAR TO COME? KRISTIN: A LOT OF ISSUERS ARE SAYING 2025 YOU GET THROUGH THE ELECTION CYCLE, WE GET TO A PLACE WHERE WE HOPEFULLY SEE RATES, BACK DOWN. SO THERE ARE SOME ISSUERS COMING OUT IN 2024 AND CERTAINLY GETTING A LOT OF INTENTION -- ATTENTION FROM THE INVESTORS BUT THERE'S MORE OPTIMISM. AND THAT'S TRUE FOR BOTH GROWTH COMPANIES AND ALSO SUPER PROFITABLE BUSINESSES INSIDE PRIVATE EQUITY. A LOT OF THE FIRMS ARE OPTING
TO DO PRIVATE MINORITY STAKE SALES TO ESTABLISH MARKS AND GET LIQUIDITY INSTEAD OF GOING TO THE IPO MARKET THIS YEAR. >> GOOD MORNING. I HEAR FROM A LOT OF FOUNDERS AND CEOS, A LOT OF PEOPLE THAT ARE MUCH MORE MINDED TO DOING SOME, AND DAY OR EVEN GOING PRIVATE PRE-WHY IS THAT? >> TAKE PRIVATE ACTIVITIES INCREASED SIGNIFICANTLY WITH SOME 50% IN THE TECH INDUSTRY FROM LAST YEAR. PART OF THAT IS AN ACCEPTANCE OF WHERE WE ARE FROM A VALUATION STANDPOINT. THE OTHER PART IS ON THE
FINANCING SIDE THE LAST COUPLE OF YEARS THE FINANCING FOR THOSE HAVE BEEN DRIVEN BY THE DIRECT LENDERS IN THE PRIVATE CREDIT MARKET. WE ARE STARTING TO SEE SOME OF THE MORE TRADITIONAL FUNDING SOURCES IN THE BROADLY SYNDICATED MARKET AVAILABLE AS WELL. >> THAT CONVERTIBLE INTERESTING. ONE CASE STUDY OUT THIS MORNING IS LENOVO DOING AN ARRANGEMENT WITH SAUDI ARABIA THROUGH ONE OF ITS INVESTMENT FIRMS. ON VERY FAVORABLE TERMS BUT IT'S ALSO A QUID PRO QUO WHERE THERE'S A FINANCING SIDE OF IT, THAT LENOVO HAS TO SET UP AN R&D FACILITY IN THAT COUNTRY. I'VE HEARD IT ELSEWHERE, SHAREHOLDER SELLING OUT THE STOCK, BUYING UP CONVERTIBLE NOTES IN THE SAME NAME.
WHAT ARE YOU SEEING IN THAT MARKET? KRISTIN: THAT MARKET I THINK WILL BE PRETTY ACTIVE THIS YEAR. THERE'S A COUPLE OF INTERESTING THINGS THAT HAVE CHANGED WITH THESE HIGHER FOR LONGER SENTIMENT, ONE IN PARTICULAR IS WE ARE NOW SEEING ISSUERS REFINANCE FLOATING-RATE DEBT WITH CONVERTIBLES AND THEY ARE SAVING UP TO 50% IN INTEREST EXPENSE WITH PREMIUMS THAT ARE 100% SO IT MAKES A LOT OF SENSE FOR SOMEONE -- SO MANY OF THESE LARGE-CAP ISSUERS. ONE THING WE ARE SEEING IS LARGE CAP ISSUERS DOING A CONVERT TO REPURCHASE SHARES AND SO I THINK THAT THE CONVERT ACTIVITY WILL ONLY INCREASE MEANINGFULLY THIS YEAR IN THIS ENVIRONMENT. >> ISN'T IT INTERESTING AT A TIME WHEN MARKETS GO FROM RECORD HIGH TO RECORD HIGH THERE'S LESS ACCESS TO GETTING INTO THE PUBLIC MARKET AND SO MUCH OF THE ENTHUSIASM IS IN THE PRIVATE MARKETS. THERE'S ALSO A LOT OF TALK
AROUND M&A. I'M CURIOUS OF WHAT YOUR INTEREST IS GOING FORWARD. >> THE TAKE PRIVATES WE TALKED ABOUT WE SEEN AN INCREASE IN STRATEGIC ACTIVITY IN A MEANINGFUL WAY AND WILL SEE THAT THROUGHOUT THE BALANCE OF THE YEAR. SOME OF THE SMALLER, AND DAY THAT'S HAPPENING TENDS TO BE SOME OF THESE EARLY STAGE AI TECHNOLOGY BUSINESSES BUT THEY ARE SCALING RAPIDLY SO THAT COULD OVER THE NEXT 12 TO 18 OR 24 MONTHS MEAN MUCH LARGER SCALE, AND DAY AND ADDING TO THIS ALREADY MASSIVE BACKLOG.
>> FOR ALL THE GROWTH STAGE TECHNOLOGY OUT THERE, THE FOUNDERS OR STAFF, WHAT IS A GOOD REASON TO GO PUBLIC? WHAT IS A GOOD MOTIVATION TO LIST YOUR COMPANY. >> THE BIGGEST REASON RIGHT NOW IS LIQUIDITY BEING PRIVATE FOR A NUMBER OF YEARS GETTING AN OPPORTUNITY TO START TO FIND WEALTH IN THE PUBLIC TRADED STOCK. OR TO VALIDATE THE TECHNOLOGY OR THE STAYING POWER OF A PRIVATE COMPANY. SOME OPT TO GO PUBLIC BECAUSE THE CUSTOMERS ARE WORRIED THEY WON'T BE AROUND WITH LONG-TERM FUNDING. SO FROM A REPUTATIONAL STANDPOINT THEY WANT TO BE
PUBLIC AND THE LAST IS PROBABLY THE INVESTORS LOOKING FOR LIQUIDITY AND AGAIN IN -- PRIVATE EQUITY I THINK THERE'LL BE A NUMBER OF IPOS THAT COME OUT OVER THE NEXT COUPLE OF YEARS BECAUSE WE HAVEN'T SEEN A LOT OF ACTIVITY OUT OF PRIVATE EQUITY, BUT RIGHT NOW FOR THE MOST PART THEY ARE FINDING LIQUIDITY IN THE PRIVATE MARKET MORE APPEALING. THEN THE IPO MARKET ALTHOUGH WE ARE SEEING SOME ATTRACTIVE ASSETS BECOMING PUBLIC ON A MORE LIMITED BASIS. >> GLOBAL HEAD OF TECHNOLOGY INVESTMENT BANKING AT BARCLAYS, TERRIFIC WAY TO START THE PROGRAM. WE WILL CONTINUE THE CONVERSATION ON THE TECH IPO LANDSCAPE WITH ERIC, REALLY INTERESTING CONVERSATION. ANOTHER INTERESTING PERSON. COMING UP IN THE FIRST INSTANCE
WE WILL HEAR FROM THE YOUTUBE CEO ON THE COMPANY'S PLANS FOR EXPANSION. >> SOME SHARES IN THE PUBLICLY TRADED MARKET STILL AVAILABLE SALESFORCE. UP ABOUT 6/10 OF 1% UNLIKE THE REST OF THE MARKET WE ARE HIGHER AND ANTICIPATING THE EARNINGS AFTER THE BELL, OF THE FISCAL FIRST-QUARTER EARNINGS.
HOW MUCH ARE WE ABLE TO SEE DATA CLOUD WHICH RBC HELPS ORGANIZE DATA FOR ANALYTICS AND THE AI SPACE, A HOUSE THAT CAN HELP WITH THEIR FOCUS ON MARGINS AS WELL. THIS IS BLOOMBERG TECHNOLOGY. >> HOW YOUTUBE BECAME MUST WATCH TV, THE LATEST EPISODE OF THE CIRCUIT WHERE BLOOMBERG ORIGINALS HOST EMILY CHANG SITS DOWN WITH YOUTUBE CEO ABOUT TRANSFORMING THE PLATFORM INTO THE WORLD'S BIGGEST STREAMER. LISTEN TO THIS.
>> YOUTUBE IS REALLY ITS OWN SORT OF UNIQUE THING. WE ARE NOT A SOCIAL MEDIA PLATFORM, WE ARE NOT TRADITIONAL MEDIA IN THE SENSE WE ARE LINEAR TELEVISION. WE ARE REALLY SORT OF OUR OWN THING AND IF WE LIVE UP TO THAT VISION, WE THINK WE ARE REALLY STILL IN THE EARLY DAYS OF OUR GROWTH STORY AND FULFILLING WHAT OUR MISSION IS WHICH IS TO GIVE EVERYONE A VOICE AND SHOW THEM THE WORLD. >> YOUTUBE IS NOW BY FAR THE BIGGEST STREAMER IN THE WORLD, NETFLIX CLOSE BEHIND. AND THEN EVERYBODY ELSE DROPS WAY DOWN. HULU, DISNEY, YOU DON'T GET THE
AWARDS OR THE CRITICAL ACCLAIM. WHAT MORE DOES YOUTUBE HAVE TO PROVE? >> I THINK YOUTUBE IS GETTING RECOGNIZED AS THE PLATFORM ON TELEVISION SCREENS. WE SURPASSED ONE BILLION HOURS OF WATCH TIMES ON LIVING ROOM SCREENS AND YOU MENTION THE NIELSEN RATINGS, THAT IS SOMETHING THAT WHEN I SPEAK TO OUR ADVERTISING PARTNERS AND THE BRANDS THAT LOOK TO BUILD CONNECTIONS WITH CONSUMERS ON OUR PLATFORMS THEY RECOGNIZE THAT AND THEY SEE IT AS A PLACE NOT JUST OF THIS BROAD REACH, THE NUMBER ONE STREAMING PLATFORM HERE IN THE U.S., BUT ALSO REACH THAT IS ENGAGED AND FROM A BRANDS PERSPECTIVE THAT IS SOMETHING THEY ARE REALLY RECOGNIZING.
IT IS STILL THE EARLY DAYS OF THE JOURNEY BUT I START TO HEAR THAT MORE AND MORE FROM OUR PARTNERS. >> YOUTUBE IS PRINTING MONEY FOR GOOGLE. WHERE WILL THE FUTURE REVENUE GROWTH, FROM, TALK TO US ABOUT THAT STRATEGY AND HOW IT WILL PLAY IN. >> IF YOU THINK ABOUT YOUTUBE TODAY COMPARED TO FIVE YEARS AGO OR CERTAINLY 10 YEARS AGO THERE ARE AN ORDER OF MAGNITUDE MORE CREATORS ON THE PLATFORM. WE HAVE A BREATH OF MONETIZATION OFFERINGS TO SUPPORT THOSE CREATOR ECONOMY NOT JUST ADS BUT SUBSCRIPTION BUSINESS, THAT WAS THE $15 BILLION SUBSCRIPTION BUSINESS ACROSS ALL OF GOOGLE BUT ALSO DIRECT TO FAN FUNDING LIKE CHANNEL MEMBERSHIPS SO THERE IS AN ENORMOUS AMOUNT OF SCALE AND COMPLEXITY IN THE ECOSYSTEM THAT REQUIRES US TO RETHINK HOW WE WILL SUPPORT THAT GREATER ECOSYSTEM. >> THE YOUTUBE CEO ALONG WITH BLOOMBERG'S EMILY CHANG YOU CAN CATCH THE FULL INTERVIEW TONIGHT AT 6:00 P.M.
RIGHT HERE ON BLOOMBERG TELEVISION. AII AND THE U.S. MARKET. WE WILL HAVE ALL THE DETAILS AND SOME >> BREAKING NEWS PRAYED >> RED HEADLINE ON THE BLOOMBERG. ED: PHP DOES NOT INTEND TO MAKE A FIRM OFFER, YOUR NUMBER BHP WANTED ANGLO TO EXTEND THE DEADLINE THAT WOULD ALLOW TALKS FOR A DEAL BUT THEY'VE ISSUED A STATEMENT SAYING THEY DO NOT INTEND TO MAKE A FIRM OFFER. WE ARE READING THROUGH THE STATEMENT BASICALLY BHP SAYING THEY ARE UNABLE TO REACH AN AGREEMENT ON VIEWS IN RESPECT OF SOUTH AFRICAN REGULATORY RISK AND ALSO THE COST OF THE DEAL. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: LET'S TALK ABOUT OPENAI. A FORMER BOARD MEMBER OF OPENAI HAS ACTUALLY SAID THE BOARD DIDN'T KNOW ABOUT THE ORIGINAL 2022 LAUNCH OF CHATGPT UNTIL AFTERWARDS AND THEY ONLY FOUND OUT ABOUT IT ON TWITTER OR ACTS. LET'S BRING IN SETH FOR MORE ON WHAT SEEMS TO BE MORE DISCUSSION IN THE PRESS, I HAD ALREADY WRITTEN ABOUT SOME OF THEIR WORRIES ABOUT AI GOVERNANCE. THIS KEEPS BUILDING. >> A FORMER BOARD MEMBER WHO IS GOING ROGUE AT THIS MOMENT REALLY BASHING THE COMPANY AND ITS CURRENT LEADERSHIP. HERE IS THEIR BIGGEST BEST-KNOWN PRODUCT. NO PREVIOUS AWARENESS, THERE'S A CAVEAT THERE.
WHEN THEY'RE RELEASED THIS PRODUCT IT WAS KIND OF A SLOW BURN INITIALLY. PEOPLE DIDN'T KNOW IT WOULD BE AS BIG, BUT THE BIGGER TAKE AWAY IS SHE'S GETTING AT THE IDEA THERE IS A LONG SERIES OF TIMES WHERE THEY WERE MISINFORMED, UNINFORMED OR FELT LIKE THEY WERE BEING MANIPULATED BY SAM ALTMAN. AND FOR MONTHS NOW IT'S BEEN A GUESSING GAME IN SILICON VALLEY. PRECIPITATED THE OUSTER LAST YEAR THIS IS REALLY WHAT WE SEEN. >> AS WE KNOW ARE NEVER WEEKEND OF THE OUSTER. DIDN'T PICK UP THE PHONE, SHE DIDN'T HAVE MUCH TO SAY THEN IN THE LAST 24 HOURS. SHE SAID QUITE A LOT TO SAY.
THE ISSUE IS THE RELATIONSHIP WITH SAM. THIS IS SOMETHING SAM TOLD BLOOMBERG LAST YEAR. >> YOU HAVE AN INCREDIBLE AMOUNT OF POWER AT THIS MOMENT IN TIME. WHY SHOULD WE TRUST YOU? >> YOU SHOULDN'T. I THINK AT THIS MOMENT IN TIME PEOPLE DESERVE BASICALLY AS MUCH TIME ASKING QUESTIONS AS THEY WANT AND I'M TRYING TO SHOW THEM THAT.
MORE THAN THAT, LIKE NO ONE PERSON SHOULD BE TRUSTED HERE. I DON'T WANT THE SHARES PRAYED THE BOARD CAN FIRE ME. I THINK THAT'S IMPORTANT. >> AT ITS ROOT THE SAM ALTMAN PUSHING TO COMMERCIALIZE THE TECHNOLOGY AND THERE'S DIFFERENT ITERATIONS OF THE BOARD WHO SEEM UNAWARE, I DON'T REALLY KNOW WHERE TO GO NEXT WITH THAT. >> IT'S PRETTY REMARKABLE THERE'S BEEN A DRIP FROM HELEN WHERE BECOME MORE COMFORTABLE IN PUBLIC ABOUT HER CONCERNS. FOR MONTHS WE REALLY COULDN'T GET THAT.
WE HEARD THERE WAS A LONG SIMMERING BUILDUP OF MISTRUST AND MISCOMMUNICATION AND HER LATEST STATEMENTS WERE SEEN. >> THE CURRENT CONTEXT AS YOU CAN TRUST SAM WHEN IT COMES TO DISCUSSIONS WITH CELEBRITIES. WHEN IT COMES TO THAT ULTIMATELY IS WHAT PEOPLE ARE NOW REALIZING. RIGHTLY OR WRONGLY WHAT WAS CAST INTO THE PUBLIC DISCOURSE IS OF COURSE SCARLETT JOHANSSON AND THE CALLS AND WHAT TIME THEY HAPPENED AND OPENAI TRYING TO LAY OUT THE ORDER OF OCCURRENCE OF WHEN THEY DISCUSSED USING THE VOICE OF SCARLETT JOHANSSON AND WHEN THEY TALK TO ACTRESSES BUT THERE IS A FEELING OF DISTRUST.
>> FOR ALL THE TENSION THEY HAVE WITH BOARD MEMBERS NEVER CROSS A FAMOUS ACTRESS. CAROLINE: SETH, WE WILL SEE WHAT THE NEXT RESPONSES FROM OPENAI AMID ALL OF THIS PRAYED WE THANK YOU FOR WALKING US THROUGH IT. OPENAI HAS SOME COMPETITION. ONE OF THEM IS FROM FRANCIS MISTRIAL AI WHICH LAUNCHED AS A EUROPEAN RIVAL. BUT IT'S NOW EYEING THE UNITED STATES. BLOOMBERG'S MARK BERGEN FOR MORE.
THEY ARE HIRING A KEY MEMBER. >> SO THIS HAS BEEN A MAJOR HIGHER AND THIS IS ONE CLOSELY WATCHED IN EUROPE AND THERE'S REALLY NO PRECEDENTS FOR COMPANY ASIDE FROM MAYBE SPOTIFY HAVING THE GLOBAL TECHNOLOGY SUCCESS IN EUROPE. THERE'S REPORTS IN PROBABLY LESS THAN 14 MONTHS THEY'VE NOW GONE FROM 02 COME BE WORTH 6 BILLION SO THERE'S A LOT OF EXPECTATIONS AND PRETTY HIGH VALUATION THEY HAVE TO BE.
>> GIVE ME A SENSE OF THE SIZE AND SCALE. WE WERE POURED ON THEM A LOT, THEY ARE LITTLE BIT SHY. THEY'VE HAD REGULATORY FOCUSES IN EUROPE.
TELL ME ABOUT THE BASICS. >> IT'S PRETTY SMALL. IT'S SOMETHING I THINK FROM MY SENSE IS PROBABLY A TEAM OF AROUND 50 AT THIS POINT. IT COULD BE BIGGER THAN THAT BUT THAT'S SORT OF THERE, OH IS WE ARE LEANER BUILDING MORE AGILE MODELS, THEY ARE OPEN SOURCE, AT THIS POINT THEY ARE VERY CLOSE TO THE FRENCH GOVERNMENT IN THE SENSE THAT ONE OF THE COFOUNDERS AND POLICY CHIEF IS THE PRIOR FRENCH DIGITAL MINISTER, MACRON HAS TALKED ABOUT SUPPORTING THEM LAST WEEK. HE HAD SOME INTERESTING COMMENTS ABOUT HOW HE PREFER THEY WOULD GROW BIG ON THEIR OWN AND REMAIN INDEPENDENT. THE SUBTEXT WAS DO NOT SELL TO A BIG TECH AMERICA FIRM. ED:
TERRIFIC REPORTING OUT OF EUROPE, REALLY APPRECIATE IT. COMING UP WE WILL BE JOINED BY THE RING CEO FOR HER PRIORITIES FOR THE COMPANY AS ITS CEO ONE YEAR IN. A QUICK CHECK ON SHARES OF TENCENT, U.S.
ADRS WE BRING THOSE UP. WEDNESDAY'S TRADE OVERNIGHT IN ASIA DOWN 2.4%. INTERESTING DATA ABOUT MARQUEE SALES PRAYED NOT AS STRONG A SUMMIT HOPED. THIS IS BLOOMBERG TECHNOLOGY.
ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. >> A QUICK CHECK ON YOUR MARKETS TODAY BECAUSE WE ARE MORE, A BOND YIELDS RISING TRACKING SOME OF THE MARKETS LOWER. THE NASDAQ AND THE NASDAQ 100 OUTPERFORMING KEY U.S. BENCHMARKS. WE ARE LOWER ON THE BIG TECH BENCHMARK OF THE NASDAQ 100. 10 YEAR YIELD AND 30 YEAR YIELD ACROSS WE ARE SEEING COSTS RISING AS WE HAVE ANOTHER BIG AUCTION.
WILL THERE BE NOT AS MUCH DEMAND AS WAS HOPED LIKE WE SAW IN THE PREVIOUS TWO AUCTIONS. BITCOIN ON THE DOWNSIDE, A 7000. MOVING ON AS WE TRY TO MARK THROUGH WHAT IS A SLIGHT TEMPERING OF RISK APPETITE. THE STOCKS IS ONE THAT UNDERPERFORMS. THE SEMICONDUCTOR INDEX OFF WITH EVERY SINGLE CHIPMAKER DOWN BECAUSE THEY BEEN RALLYING SO HARD. CERTAINLY THE CASE FOR MODERNA
OFF BY A MOST 5% WITH A HORRIBLE DAY YESTERDAY. IT HAD A RECORD WINNING STREAK OF 10 STRAIGHT DAYS OF GAINS. THIS IS A COMPANY INJECTING GENERATIVE AI THROUGHOUT ITS FOCUS ON HEALTH CARE. LOOKING AT AMAZON ONE OF THE OUTPERFORMER'S ON THE DAY. THE LITTLE HEADLINE THERE THAT
THEY ARE ONCE AGAIN IMPROVING EXPANDING THEIR PARTNERSHIP DEAL WITH GERMANY'S SAP SO A KEY FOCUS THERE ON THE POWER OF GENERATIVE AI COMING IN TO THAT MORE BROADLY. >> FOR YEARS THE AMAZON UNIT TOUTED ITS CRIME-FIGHTING FEATURES THANKS TO ITS SELLING THE LET HOMEOWNERS REMOTELY MONITOR THEIR RESIDENCES BUT TODAY THE KIND OF FOOTAGE RING USERS SHARE IS LESS ABOUT SUSPICIOUS ACTIVITY AND MORE ABOUT PETS OR WILD ANIMAL SIGHTINGS AND WATER BALLOON FIGHTS. IT'S ALL PART OF HOW RING IS TRYING TO REINVENT ITSELF AIMING FOR A MASH-UP OF SOMETHING BETWEEN NEXT-DOOR AND TIKTOK. HERE TO DISCUSS THE LIE IS THE RING CEO. THE FIRST SORT OF SIT DOWN INTERVIEW SINCE YOU'VE BEEN CEO, YOU AND I MET ALMOST ONE YEAR TO THE DAY.
THE BEST PLACE TO START IS PROBABLY WHY A NEW MISSION. WHAT PROMPTED YOU TO SAY RING HAS TO BE A DIFFERENT CAMPAIGN. >> OUR NEW MISSION WAS PROMPTED BY LAST YEAR GOING OUT AND TALKING TO CUSTOMERS AND OUR EMPLOYEES AND SEEING HOW PEOPLE WERE USING OUR CAMERAS. ONE OF THE THINGS WE FOUND IS WHILE OUR MISSION AROUND SAFETY AND SECURITY WAS STILL RELEVANT. PEOPLE USE THESE TO FEEL SAFE AND SECURE.
THEY WERE ALSO USING THEM FOR SO MUCH MORE, FOR CONVENIENCE, FOR PRESENCE AND CONTROL, HOW BUSY IS MY SMALL BUSINESS. OR CONNECTION, PEOPLE LOVE TO WATCH THEIR PETS WITH THEIR CAMERAS. AS WE WERE BUILDING NEW PRODUCTS WE FOUND THE MISSION WAS LIMITING AND JUST TOO NARROW. IT'S MORE EXPANSIVE FOR HOW PEOPLE USE OUR PRODUCTS. ED: FULL DISCLOSURE, WE ARE A RING FAMILY. WHEN MY FATHER-IN-LAW IS HERE HE'S WORRIED ABOUT WHAT'S GOING ON IN SOCAL.
HE CONSULTS HIS PHONE TO CHECK IN. THESE NEW AREAS, DO YOU SEE A MEANINGFUL SPLIT OR PROPORTION ON WHAT SALES ARE DRIVEN BY SECURITY I GUESS -- GIVEN -- DRIVEN BY WHAT IS I GUESS SOCIAL INTERACTION. >> A LOT OF WHY PEOPLE BUY IS THEY WANT TO BE CONNECTED TO THEIR HOMES. THEY WANT TO SEE WHAT'S GOING ON AND FEEL SAFE AND SECURE. WHAT THEY FIND IS THERE'S ANY NUMBER OF CONVENIENCE FEATURES TO USING IT.
I WOULD SUSPECT WHAT YOUR FATHER SHOWS YOU IS NOT JUST SECURITY AND SAFETY FEATURES BUT FUNNY THINGS THAT HAPPENED AT HOME OR SURPRISING WHETHER OR ANY NUMBER OF THINGS THAT MAKE YOU CONNECTED TO YOUR HOME OR SMALL BUSINESS. CAROLINE: THAT IS ALLOWING YOU TO MAKE SOME REVENUE, A DRIVE $20 A MONTH SUBSCRIPTION AND YOU'RE NOW AIMING AND HAVE ATTAINED PROFITABILITY PRAYED IS THAT SUSTAINABLE? LIZ: I BELIEVE SO. IT'S JUST THE BEGINNING OF SIGNIFICANT BUSINESS GROWTH. WE GREW DOUBLE DIGITS IN CONTINUED GROWTH HERE ESPECIALLY AS WE THINK ABOUT RING BEING A VIDEO SERVICE COMPANY. WHEN PEOPLE TALK TO OTHER RING
CAMERAS NOT SHOWING YOU THAT IS ICONIC AS HER HARDWARE IS THEY ARE SHOWING YOU VIDEO ON YOUR PHONE. THAT VIDEO SERVICE IS VALUABLE AS WE INVEST IN COMPUTER VISION AND AI TO MAKE IT MORE VALUABLE WE THINK BUSINESS WILL CONTINUE TO BE PROFITABLE AND GROW. >> YOUR EXPERTISE HAS BEEN IN THE WORLD OF CONNECTED CAMERAS, WE HAVE A LOT OF BUSINESS EXPERTISE JOINING AND LEADING RING. WAS NOW THE MOMENT TO TURN ON THE MONEY PIPELINE OR IS IT MORE ABOUT WHERE AMAZON IS WITH A FOCUS ON PROFITABILITY RATHER THAN GROWTH AT ALL COSTS? LIZ: I'M NOT SURE I WOULD THINK ABOUT IT AS IS IT A BINARY DECISION. THE BUSINESS IS HEALTHY THE NATURAL COURSE OF THIS BUSINESS IS TO BE PROFITABLE BASED ON THE SIZE OF THE BUSINESS AND CUSTOMER DEMAND AND THE VAST MAJORITY OF OUR CUSTOMERS SUBSCRIBE TO OUR SCRIPTION SERVICE. THAT'S A BIG DRIVER OF OUR
BUSINESS HEALTH. >> IT'S AN INTERESTING TIME FOR THE SERVICES GROUP BROADLY. HOW IS YOUR RELATIONSHIP WITH HIM AND HOW DO YOU WORK TOGETHER BECAUSE IS A LOT OF INTERRUPT ABILITY ON THE AMAZON ECOSYSTEM. LIZ: WE'VE WORKED TOGETHER BACK IN
MY DAYS AT MICROSOFT SO IT'S AWESOME TO HAVE HIM LEADING DEVICES AND SERVICES FOR AMAZON. WE WORK TOGETHER TO ENSURE THAT OUR PRODUCTS WORK TOGETHER AND SO MANY CUSTOMERS CONNECT THEIR RING CAMERAS TO ALEXA AND ABOUT A THIRD OF OUR DOORBELL CUSTOMERS IS AN ECHO DEVICE AS THERE CHINA. >> IT IS COMPETITIVE. I GET ADVERTISEMENTS FOR OTHER SIMILAR CAMERA-BASED TECHNOLOGY. WHAT WOULD YOU SAY IS THE RING POINT OF DIFFERENTIATION.
WHAT ARE YOU DOING BETTER AT A HIGHER LEVEL THAN OTHERS? >> I THINK IT'S A COMBINATION OF OUR SOFTWARE AND HARDWARE BUT REALLY THE DIFFERENTIATION IS IN SOFTWARE. THERE'S A LOT OF CAMERAS ON THE MARKET BUT WHAT MAKES THEM UNIQUE IS REALLY HOW THE SOFTWARE TAKES ADVANTAGE OF THE HARDWARE CAPABILITIES. >> LOOKING AT THIS FOOTAGE IS HILARIOUS. I'VE WATCHED MANY FRIENDS TRIED TO BE TERRIFIED OF OF A SQUIRREL INSIDE THEIR HOUSE TO DO SOME SORT OF CAMERA. YOU SEE OTHER PATHS AS WELL, THERE'S KEY IN HOME DELIVERY SERVICES USING THESE SORTS OF TECHNOLOGIES FOR EFFICIENCY. SIDEWALK WIRELESS NETWORK. YOU ARE NOT GOING INTO THE
WORLD OF THERMOSTATS AND OTHER CONNECTED AREAS IN YOUR BUSINESS ARE YOU. BECAUSE FOR ME THAT'S A DIFFERENTIATION GOOGLE OFFERS AT NEST. LIZ: FOR RING SPECIFICALLY, WE ARE FOCUSED ON THIS NOTION OF UNDERSTANDING WHAT'S GOING ON AT YOUR HOME OR BUSINESS AND THEN PROVIDING ACCESS TO IT. ALTHOUGH THOSE PRODUCTS ARE INTERESTING THEY DON'T FIT WITH OUR MISSION OF KEEPING PEOPLE CLOSE TO WHAT IS IMPORTANT. SO I THINK WE ARE FOCUSED ON THE RIGHT PRODUCTS THAT DO THAT AND I THINK WE ARE PRETTY BUSY AND FULL JUST FULFILLING ON THAT MISSION.
>> OUR DIRECTORS CAN BRING UP THAT FOOTAGE OF THE BEAR AGAIN. I SEE THAT ALL THE TIME. I SEE IMAGES JUST LIKE THOSE. SOMETHING FANTASTIC THAT I SEE THEM ON TIKTOK AND I SEE THEM ON INSTAGRAM REELS, THAT'S WHERE THE CONTENT IS SHARED SO HOW DO YOU DERIVE A BENEFIT FROM THE ENTHUSIASM OF THE CUSTOMER WHO TAKES IT AND SHARES IT ELSEWHERE. LIZ: WE LOVE OUR CUSTOMERS TO FEEL LIKE THEY GET VALUE OUT OF THEIR PRODUCTS AND ONE OF THOSE IS BEING ABLE TO DOWNLOAD VIDEOS AND SHARE THEM HOW THEY WOULD LIKE. IT ALSO DRIVES AWARENESS OF THE PRODUCT SO PEOPLE WHO ARE NOT YET RING CUSTOMERS SEE THOSE AND THINK I WANT TO MAKE SURE I CAN STAY CONNECTED. ED: IT'S LIKE MARKETING THROUGH SOCIAL AND IT'S LIKE OWNERSHIP SPREADING THE WORD LIKE TESLA DOES WITH ITS EEEV'S.
JUST FANTASTIC TO FINALLY GET YOU ON THE SHOW ONE YEAR INTO THE JOB, THANK YOU SO MUCH. >> WHAT A GREAT CONVERSATION BUT IT'S TIME FOR TALKING TECH. PAUL ROMA ISSUING A WARNING ABOUT ARTIFICIAL INTELLIGENCE. ECONOMICS PROFESSOR AI MARKET RUN TO THE CRYPTO HYPE BUBBLE.
>> THERE'S WAY TOO MUCH CONFIDENCE ABOUT THE FUTURE TRAJECTORY OF AI. I THINK THEY'RE AT RISK OF MAKING A SERIOUS MISTAKE. WE'VE BENEFITED FROM SCALING UP COMPUTE AND INGESTING DATA, IT'S JUST MORE MACHINES AND CHIPS.
WHAT'S CAN HAPPEN IS WE WON'T HAVE ENOUGH DATA. >> TALKING OF AI, THE ARMS OF ACCOUNTING FIRM PWC IS SET TO START SELLING PRODUCTS. IT WOULD ALLOW THEM TO BECOME THE FIRST RESELLER OF CHATGPT ENTERPRISE PRODUCTS TOWARDS BUSINESS USE. THE TERMS OF THE DEAL WERE NOT DISCLOSED. A LAWSUIT CHALLENGING WEB SCRAPING PRACTICES OF OPENAI, HAS BEEN DISMISSED BY A JUDGE.
IT ACCUSED MICROSOFT OF VIOLIN PRIVACY LAWS BY STEALING DATA TO TRAIN AI SYSTEMS AND THE JUDGE SLAMMED THE ATTORNEYS FOR BEING EXCESSIVELY LONG AND MEANDERING CALLING IT UNNECESSARY AND DISTRACTING. COMING UP WE WILL TALK ABOUT THE STATE OF THE U.S. IPO MARKET. THIS IS BLOOMBERG TECHNOLOGY.
THE YOUTUBE CEO ALONG WITH EMILY CHANG. CHECK THE FULL EPISODE TONIGHT. THIS IS BLOOMBERG. CAROLINE: WE TALKED ABOUT IT EARLIER, THE LACK OF IPOS MARKET AND IN A RECENT OP-ED, ERIC ARGUES THE NUMBER OF U.S. COMPANIES IS PLUMMETING. BAD NEWS FOR THE COMPONENT OF THE ECONOMY SAYING EXIT OPPORTUNITIES ARE CRITICAL TO THE PROMISE OF AMERICAN INNOVATION AND NEGLECTING THEM WILL BE OUR COLLECTIVE DETRIMENT. WE ARE PLEASED TO WELCOME TO
THE SHOW NOW ERIC. AS YOU WRITE THAT OUT AND NOW THINKING ABOUT BROADENING OUT THE CONVERSATION YOU ARTICULATE WHY IT'S BAD FOR WANNABE INVESTORS AND FOR FUTURE GROWTH AND FINANCIAL BENEFITS TO MANY, BUT WHY IS THIS HAPPENING FROM YOUR PERSPECTIVE? >> IT'S HAPPENING MOSTLY DUE TO REGULATIONS. THAT'S THE NUMBER ONE FACTOR. THE NUMBER TWO FACTOR IS THESE
COMPANIES ARE CHOOSING TO STAY PRIVATE LONGER BECAUSE IS MORE PRIVATE CAPITAL. IT'S A BIT OF A CONUNDRUM BECAUSE THIS CAPITAL IS EXPECTING AN EXIT AT SOME POINT WHICH IS LIKELY TO BE THE PUBLIC MARKETS. SO WE USED TO HAVE 8000 PUBLIC COMPANIES IN THE 90'S. WE ARE DOWN TO LESS THAN 4000. AT THIS PACE WE WILL DOWN TO
2000 IN ANOTHER 20 YEARS. 2000 IS ABOUT THE SIZE OF THE STOCK EXCHANGE WHICH WENT FROM 4000 TO 2000. STOCK EXCHANGES ARE SHRINKING NOT IN TERMS OF VALUATIONS BUT IN TERMS OF THE NUMBER OF PUBLIC COMPANIES. MEANING THE REMAINING COMPANIES HAVE HIGHER AND HIGHER MARKET CAPITALIZATIONS AND IT'S DIFFICULT FOR YOUNG INNOVATIVE GROWING COMPANIES TO GO PUBLIC. >> CAN WE THINK ABOUT THIS THROUGH THE LENS OF A CASE STUDY IF YOU DON'T MIND. I THINK ABOUT ELON MUSK
INCORPORATED. HE IS DOCUMENTING THE CHALLENGES OF BEING A PUBLIC COMPANY CEO OF TESLA AND IF I COMPARISON YOU LOOK AT HIS PRIVATE COMPANIES, SPACE X, THE, BE FORMERLY KNOWN AS TWITTER. MANY WOULD ARGUE HE'S ABLE TO INNOVATE WITH MORE FREEDOM BECAUSE HE IS FREE OF THE RESPONSIBILITY OR SCRUTINY OR EVEN THE TRANSPARENCY REQUIRED OF BEING A PUBLIC COMPANY. WHAT WOULD YOUR RESPONSE BE TO THAT CASE STUDY AND LINE OF ARGUMENT? ERIC: I WOULD SAY HE'S PRETTY DISTINCT AND REMARKABLE BY HIMSELF AND HAS BEEN ABLE TO RAISE BILLIONS IN THE PRIVATE MARKET FOR HIS COMPANIES AND STAY PRIVATE A LOT LONGER. THIS IS NOT WITHIN THE REGION MOST PRIVATE COMPANIES.
MOST PRIVATE COMPANIES ARE ABLE TO RAISE IN THE TENS OF MILLIONS OR HUNDREDS OF MILLIONS AT MOST. BUT TO HAVE ACCESS TO A BILLION DOLLARS WERE $2 BILLION IN CAPITALIZATION YOU NEED THE PUBLIC MARKET FOR THIS. SO WHEN ELON'S COMPANIES GO PUBLIC THEY ARE ALREADY READY SUBSTANTIAL COMPANIES. THAT'S NOT THE NORM. WHAT WERE LOOKING FOR IS THE ABILITY TO HAVE MARKET COMPANIES BE CAPITALIZED AT AROUND ONE BILLION TO $5 BILLION THAT'S WITH HER MOST KNOW IPOS AND THIS IS KIND OF THE POINT OF ENTRY. LET'S TAKE THE EXAMPLE OF NVIDIA.
NVIDIA WENT PUBLIC IN THE LATE 1990'S AND THE MARKET CAP OF ABOUT $600 BILLION PER -- 600 MILLION DOLLARS. THE COMPANY IS WORTH THE MOST $3 TRILLION SO A REMARKABLE RISE AND A LOT OF THE PUBLIC SHAREHOLDERS, THE PEOPLE WHO WERE ABLE TO BUY THOSE SHARES IN THE EARLY DAYS CAP TO THEM HAVE BECOME VERY RICH. THAT'S THE KIND OF MOMENTUM THAT WE ARE LOOKING FOR. CAROLINE: THEREFORE IF IT'S REGULATION THAT STIFLED IT, IS IT LESS REGULATION THAT'S NEEDED AND HOW DO YOU PROTECT AN INVESTOR BASE WITH LESS REGULATION? ERIC: IT'S -- THE TIPPING POINT REALLY WAS THE ACTIVE 2002 -- ACT OF 2002.
SMALLER PUBLIC COMPANIES WERE FORCED TO EITHER DELIST OR MERGE OR GO PRIVATE GIVEN THE BURDENS IMPOSED BY THAT PARTICULAR ACT. SO THIS IN MY MIND NEEDS TO BE REVIEWED. WE REALLY NEED ALL THESE CONTROLS. WE ARE ASSUMING, WE ARE KIND OF
ASSUMING THEY WILL -- PEOPLE WHO GO PUBLIC HAVE SUMMING TO HIDE. WE NEED TO GO BACK TO A PLACE WHERE WE ARE ALLOWED THAT FREEDOM. ED: I JUST WOULD PUSH BACK ON THAT SLIGHTLY. ONE REASON IT IS SUCH A PRIVILEGE TO HOST THIS SHOW WITH CAROLINE IS WE COME ACROSS ALL KINDS OF FOUNDERS WHO DREAM OF TAKING THEIR TECHNOLOGY STARTUP PUBLIC. BECAUSE OF THE PRESTIGE OR BECAUSE IT GIVES THEIR STAFF LIQUIDITY. YOU MAY BELONG -- IN MANY INSTANCES THAT THAT'S THE DREAM AND IT IS STILL IN TACT. YOU ARE AN INVESTOR AND YOU ARE
PART OF THIS ECOSYSTEM DO NOT RECOGNIZE THAT STILL BEING PART OF THE DREAM? ERIC: VERY MUCH SO. IN SOME CASES IT'S THE ONLY DREAM. IT'S YOUR EXIT. IF YOU LIST A TYPICAL COMPANY AND A PRIVATE PORTFOLIO, $100 MILLION IN THAT REVENUES, AS IT GROWS 30% TO 50%, HAS EBITA OF $20 MILLION. AND THEY WANT TO GO PUBLIC SO WHAT'S CAN HAPPEN? IN THE COST OF GOING PUBLIC IT'S IN A COST THEM $30 MILLION A YEAR. THAT'S OVER HALF. SO SUDDENLY THE VALUATION THEY
MIGHT COMMAND IN THE PUBLIC MARKET IS WAY LESS THAN IT SHOULD BE AS A RESULT OF THIS. SO THERE'S PLENTY OF COMPANIES IN THAT SITUATION WHO WOULD LIKE TO GO PUBLIC, THEIR EMPLOYEES NEED THAT LIQUIDITY FOR THEIR OWN EQUITY. IT'S NOT REALLY POSSIBLE FOR THEM TO DO SO. ED: ERIC I CAN SAY WITH CERTAINTY CAROLINE AND I BOTH THOROUGHLY ENJOYED THAT CONVERSATION. THANK YOU FOR COMING ON THE PROGRAM.
APPLE WINNING A LEGAL BATTLE IN CHINA OVER ITS APP STORE FEES. WE WILL GO TO MARK NEXT. THIS IS BLOOMBERG TECHNOLOGY. ED: A CHINESE COURT DISMISSED A CASE FILED BY A LOCAL CONSUMER AGAINST APPLE'S COMMISSION AND FEES FOR PURCHASES VIA ITS APP STORE RENTING THE U.S. COMPANY SOME REPRIEVE AS IT FACES GROWING SCRUTINY AROUND THE WORLD OVER ITS PRACTICES.
MARK GURMAN IS HERE WITH MORE PRIDE GIVE US THE DETAILS OF THIS CASE AND WHY IT IS IMPORTANT? MARK: A CONSUMER SUED APPLE LOCALLY OVER THE COMPANIES 30% OR UP TO 30% TAKE RATE ON APPLICATIONS. SAYING THIS STIFLES COMPETITION. THIS IS THE SAME 30%, THE SAME SITUATION WE'VE SEEN IN THE U.S., PLAYING OUT IN AUSTRALIA, OBVIOUSLY THE EUROPEAN UNION HAS BEEN LARGELY AGAINST THIS. THIS IS A TIME WHERE APPLE NOT
A RARE WIN. THEY HAVE BEEN FINED IN MANY PLACES PRAYED THEIR LOSING PORTIONS OF LAWSUITS OVER THIS CUT. IT'S AT THE HEART OF A CONTINUED BATTLE BETWEEN APPLE AND A JUDGE IN CALIFORNIA. THIS IS SOMETHING APPLE IS LIKELY CAN HAVE TO SHAKE UP. WE'VE SEEN APPLE THROUGHOUT THE CONCEPT OF 30% AS PART OF THE DIGITAL MARKET IN THE EUROPEAN UNION AND OVER TIME I EXPECT MORE SIGNIFICANT CHANGES TO THE APICAL -- THE APPLE REVENUE SHARE AGREEMENTS IN THE U.S. AND ELSEWHERE AS THIS LEGAL PRESSURE FROM CONSUMERS AND DEVELOPERS CONTINUES TO HEAT UP.
CAROLINE: WE THANK YOU SO MUCH. LET'S GO FROM APPLE TO META BECAUSE THEY'VE JUST REMOVED HUNDREDS OF FACEBOOK ACCOUNTS ASSOCIATED WITH COVERT INFLUENCE CAMPAIGNS FROM CHINA, RUSSIA AND OTHER COMPANIES -- OTHER COUNTRIES. USING AI TOOLS TO GENERATE DISINFORMATION. THIS IS ACCORDING TO THE QUARTERLY THREAT REPORT. I'M ASSUMING MAYBE THEY USED AI TO FIND THIS DISINFORMATION? KURT: THEY USE AI AND ALGORITHMS TO DETECT THIS STUFF AND DO IT AT THE PACE. THEY HAVE BILLIONS OF PIECES OF CONTENT.
IT'S NOT SOMETHING THEY CAN NECESSARILY DO MANUALLY. ONCE THINGS ARE DETECTED THEY CAN GO IN AND DO SOME INVESTIGATING. WE ARE SEEING A LITTLE BIT MORE GENERATIVE AI CONTENT THAT'S BEING USED TO MISLEAD PEOPLE. IT'S SOMETHING WE GO INTO THE
2024 ALEXION. IMPORTANT SENATE RACES. >> WHEN META FINDS THIS CONTENT, WHAT DID THEY DO IN RESPONSE. KURT: THEIR GOAL IS TO BASICALLY WIPE OUT THESE GROUPS BEFORE THEY GAIN ANY TRACTION. AND SO MOST OF THE TIME WHEN THERE CELEBRATING THIS STUFF BEFORE IT REACHES A HUGE AUDIENCE.
ULTIMATELY WE ARE TRYING TO FIND THESE GROUPS BEFORE THEY REACH SOME KIND OF SCALE. >> YOU GOT TO LABEL THIS AI GENERATED CONTENT. THAT DOES IT FOR THIS BUSY EDITION OF BLOOMBERG TECHNOLOGY. CAROLINE: THERE HAS BEEN -- ED: THERE HAS BEEN NO STOP.
I WILL NOT BE ON THE SHOW TOMORROW, I'M AWAY ON A TOP SECRET MISSION. STAY TUNED. CHECK OUT THE POD, MANY OF YOU DO ON THE WAY TO WORK. APPLE, SPOTIFY, I HEART AND WE PUBLISH ON ALL THE BLOOMBERG PLATFORMS. CUE THE BEAUTIFUL
PICTURES, THIS IS BLOOMBERG TECHNOLOGY. ♪
2024-05-30 11:22
