Meta Earnings Preview | Bloomberg Technology 04/24/2024
>> IS SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE. ED: I AM ED LUDLOW. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: FULL COVERAGE OF THE STATE OF ARTIFICIAL INTELLIGENCE AS WE SIT DOWN WITH THE OPENAI COO. ED:
PLUS WE TAKE A DEEP DIVE INTO APPLE'S ROBOT AMBITIONS AS THE COMPANY EYES THE NEXT BIG THING AFTER SCRAPPING ITS CAR AMBITIONS. CAROLINE: PARAMOUNT INCHES CLOSER TO A DEAL TO MERGE WITH SKY DANCE MEDIA. WE WILL BRING YOU THE LATEST THROUGHOUT THIS HOUR. LET'S CHECK IN ON THESE MARKETS. WE ARE POWERING HIGHER. WE ARE BACK ON A RISK ON TONE. WE SEE A SLIGHT COOLING IN THE JOBS MARKET. MOST IMPORTANTLY YOU SEE JAY
POWELL SIGNALING THEY WILL STANDBY RATE CUTS IF WE SEE THIS INFLATION PRESSURE GO BACK DOWN TO 2%. 10 REACTS ON THE BACK OF THAT. 4.34%. IF -- COPPER IS UP .9%. I LIKE WHAT IS HAPPENING WITH THE COMMODITIES. THIS IS THE CONCERN WHEN IT COMES TO INFLATION PRESSURES. COPPER IS POWERING HIGHER AND
GOLD IS AT RECORD HIGHS. LET'S LOOK AT THE WORLD OF CRYPTO. WE ARE MANAGING TO SEE RISK ON THERE. WHAT HAVE YOU GOT ON THE MICRO? ED: A LOT OF NEWS TO GET THROUGH. APPLE WE WILL DO LATER IN THE SHOW.
THE NEXT BIG THING IS A ROBOT THAT FOLLOWS YOU AROUND THE HOUSE. A LOT OF STORIES ABOUT ALPHABET. REUTERS REPORTING THEY'VE ENGAGED THEIR ADVISORS TO LOOK AT FIVE SPOT WHICH IS INTERESTING. A BUDGET OF SALESFORCE STOP -- A BUDGET SALESFORCE. CAROLINE: THAT IS DISRESPECTFUL. A SMALL BUSINESS. ED: A SMALL BUSINESS VERSION. ENGINEERS ARE WORKING ON A
PREMIUM SUBSCRIPTION BASED AI POWERED SEARCH. THE STOCK IS DOWN 1%. THERE A LOT OF QUESTIONS. META IS GETTING AN UPGRADE. NVIDIA IS UP. THINGS ARE LOOKING BETTER IN TAIWAN.
THOSE ARE THE SINGLE NAMES WE ARE WATCHING. CAROLINE: WILL BE KEEPING A CLOSE EYE ON SOME OF THE SINGLE NAMES AND GOING MORE BROADLY AS TO WHAT THE SPACE IS LIKE IN THE CHIP SECTOR AND WHERE WE ARE IN THIS AI HYPERREALITY CYCLE, HOW YOU CAN START COMMITTING MONEY TOWARDS IT. I'M AM PLEASED WELCOME MELISSA OTTO. GIVE US YOUR RESEARCH DEEP
DIVE. ARE YOU FEELING IN THIS ENVIRONMENT WITH BENCHMARKS NEAR RECORD HIGHS AND ANOTHER 70% ADDED TO NVIDIA OVER THE COURSE OF THIS YEAR THAT THIS IS STILL A BUY? MELISSA: THANK YOU SO MUCH FOR HAVING ME ON. IT IS GREAT TO TALK ABOUT TECHNOLOGY WITH YOU. IT IS A REAL PRIVILEGE.
WE HAVE SEEN UPWARD REVISIONS FROM LAST JANUARY OVER $200 BILLION. WE ARE AT AN INTERESTING INFLECTION POINT. ARE WE GOING TO SEE EARNINGS ESTIMATES REVISED ANOTHER $200 BILLION? WHEN I LOOK AT PREVIOUS CYCLES WHERE WE HAVE NEW PRODUCTS LIKE THE IPHONE OR THE INTERNET OR A NEW TYPE OF CYCLE COMING INTO THE MIX, HOW BIG COULD IT BE? IN THE BEGINNING OF THOSE CYCLES WE CAN BE CAUTIOUS OR CONSERVATIVE.
LOOKING BACK FIVE YEARS IT IS LIKE I THOUGHT MY NUMBERS WERE CRAZY, BUT ACTUALLY THEY WERE PRETTY CONSERVATIVE. THESE ARE THE QUESTIONS INVESTORS ARE ASKING THEMSELVES AND THAT IS WHAT WE ARE WATCHING. ED: THE NEWS FLOW AROUND AI -- GOOGLE IS THE EXAMPLE. THE REPORT IS THEY ARE LOOKING AT SEARCH AND SAY DO WE CHARGE A PREMIUM ON A SUBSCRIPTION BASIS. HOW MUCH OF A DOMAIN DO YOU FIND SEARCH TO BE IN THIS AI STORY? MELISSA: GOOGLE HAS OWNED THE SEARCH SPACE FOR AS LONG AS I CAN REMEMBER. THEY GENERATE INCREDIBLE
REVENUES. IT HAS BEEN THE STORY OF THE PAST 15 YEARS IN TERMS OF WHAT THEIR GROWTH HAS BEEN LIKE. WHAT WILL BE COMPELLING WILL FEED TO SEE WHAT MICROSOFT DOES WITH THEIR SEARCH. WILL THEY START TO NIP AT SOME OF THAT MARKET SHARE? WILL THEY START TO INTEGRATE AI IN A WAY THAT IS NOT CHARGING A FEE? I WOULD USERS PAY A FEE FOR AI WHEN THERE ARE OTHER OPTIONS? THERE WAS AN UPGRADE YESTERDAY WITH DOLLY AND THE MARKET CAME OUT AND SHOWED THE CAPABILITIES OF OPENAI ARE REMARKABLE. I'M EXCITED TO STICK AROUND AND LISTEN TO THE OPENAI INTERVIEW. IT IS INCREDIBLE WHAT THEY ARE DOING. ED:
WHAT IS IT YOU WOULD WANT TO LEARN ABOUT OPENAI? MELISSA: I WOULD LOVE TO HEAR WITH THEIR NEW UPGRADES ARE ABOUT, WHERE THEY SEE IT GOING NEXT, WHAT DYNAMICS? RIGHT NOW THE FOUNDATION OF AI HAS BEEN ALL ABOUT -- IT HAS ESSENTIALLY BEEN FUNDED BY CLOUD SERVICE PROVIDERS AND TAKING IT FROM CLOUD SERVICE PROVIDERS, GETTING IT INTO ENTERPRISES AND NOT ONLY GENERATING PRODUCTIVITY AND EFFICIENCY GAINS, MAKING ORGANIZATIONS MORE INTELLIGENT, BUT ALSO FINDING NEW BUSINESS MODELS. NEW WAYS OF THINKING ABOUT THE WORLD. THIS IS WHAT THE IPHONE DID SO REMARKABLY WELL.
WHAT WILL COME OUT? WHAT WILL CHANGE OUR LIVES? CAROLINE: IT IS INTERESTINGLY, FOR REPORT IN REUTERS THAT IN ORGANIC GROWTH COULD BE DONE IF THE REPORTS ARE DONE THAT ALPHABET IS EYEING HOTSPOT, FOR EXAMPLE. YOU THINK THAT SORT OF DEAL CAN GET DONE? ARE YOU EXPECTING MORE CONSOLIDATION OF LARGE PLAYERS? MELISSA: IT IS TOUGH TO ADDRESS QUESTIONS ON DEALS. IT IS SUCH A DYNAMIC MARKET. IT IS A GOOD MARKET FOR M&A. IT WILL BE INTERESTING. I WOULD PIVOT ON THAT AND SAY WE REALLY NEED TO LOOK AT THE DYNAMICS IN THE MARKET AND SEE WHERE THE TRENDS WILL LEAD US AND WHERE USERS WILL ACTUALLY DRIVE REVENUE. IF THAT WILL BE THE CASE, WHO KNOWS WHAT COULD BE ON THE HORIZON. ED: LATER TODAY CAROLINE AND I WILL BE UPSTAIRS AT THE BLOOMBERG INTELLIGENCE AI SUMMIT.
WHEN I THINK ABOUT GENERATIVE AII FEEL LIKE WE COVER IT IN REVERSE. WE WENT STRAIGHT TO THE CONSUMER FACING CHATBOT AND NOT HOW WE GOT THERE ALONG THE WAY UNTIL GDC AND APPRAISES MICHAEL DELL. MELISSA: UNBELIEVABLE. THIS WAS NEW. THIS WAS ABSOLUTELY NEW. HE CALLED OUT AND SAID WHO ELSE CAN MAKE BETTER END TO END SOLUTIONS FOR ENTERPRISES AND LARGE-SCALE THEN MIKE DELL.
YOU COULD FEEL EVERYBODY GO WHOA! I THOUGHT THAT WAS REALLY INTERESTING. THAT IS NEXT BIG LEG THAT NEEDS TO COME INTO AI, FOR THERE TO BE REAL STRATEGIC THOUGHT INTO HOW ORGANIZATIONS, ENTERPRISES ARE GOING TO EMBRACE GENERATIVE AI AND WHAT IT WILL ACTUALLY DO. THIS IS VERY TRANSFORMATIVE. IT IS NOT LIKE YOU FLICK A LIGHT SWITCH AND SUDDENLY YOU HAVE GENERATIVE AI. A LOT NEEDS TO HAPPEN IN AN ORGANIZATION. THEY NEED TO DE-SILO THEIR DATA, THEY NEED TO TRAIN IT. THERE IS SO MUCH THAT NEEDS TO HAPPEN.
IT WILL BE FASCINATING TO SEE WHAT ROLE COMPANIES LIKE DELL PLAY IN THIS ARENA. ED: NOW WE ARE TALKING ABOUT INFRASTRUCTURE AND SUPPLY CHAIN. MELISSA OTTO, THANK YOU. I WANT TO BRING AN UPDATE ON WHAT IS HAPPENING IN TAIWAN FOLLOWING THE LARGEST EARTHQUAKE IN 25 YEARS. WHILE THE FULL EXTENT FROM THE DAMAGE IS NOT KNOWN, THE LATEST FIGURES ARE 10 PEOPLE HAVE DIED IN MORE THAN 1000 HAVE BEEN INJURED. COMPANIES HAVE ALSO PROVIDED
UPDATES ON EMPLOYEE SAFETY. TAIWAN SEMICONDUCTOR RESUMED PRODUCTION LESS THAN 24 HOURS AFTER EVACUATING STAFF AND HALTING OPERATIONS. THE COMPANY SAID THERE IS BEEN NO DAMAGE TO WHICH MOST CRITICAL EQUIPMENT.
IT EXPECTS FULL OPERATIONS AT ITS MAIN PLANTS TO BE FULLY RECOVERED LATER TODAY. SOME OF THE ITEMS TECH FIRMS ARE STILL ASSESSING THE DAMAGE FROM THE EARTHQUAKE WHICH LEVEL DOZENS OF BUILDINGS. WE WILL MONITOR FROM THE LATEST HEADLINES AND BRING THEM TO YOU AS THEY CROSS THE BLOOMBERG. CAROLINE: NOW TURNING OUR ATTENTION TO DISNEY. AN EXTENSIVE PROXY BATTLE. BOB IGER HAS DEFEATED THE BILLIONAIRE ACTIVIST INVESTOR BUT WHO HAS WON OUT? CAROLINE: THE VOTES ARE IN. MONTHS OF SPENDING MILLIONS TO WIN OVER INVESTORS, BOTH RETAIL AND INSTITUTIONAL.
THE BATTLE IN THE PRESS HAS BECOME A REALITY THAT BOB IGER HAS EMERGED VICTORIOUS FROM NELSON PELTZ. ULTIMATELY, WITH A 30% RALLY IN DISNEY SHARES OVER THE COURSE OF THIS YEAR, MANY WOULD SAY NELSON PELTZ HAS ENDED UP WINNING OUT FINANCIALLY. AS THIS CHANGE THE TONE OF DISNEY GOING FORWARD? CHRISTIN: PELTZ HAS SAID HE WOULD RATHER BE RICH THAN RIGHT. HE FIRST CAME TO THE STOCK IN 2023. THIS IS HIS SECOND GO ALOUD WITH DISD. A COUPLE OF THAT THAT -- THIS
IS HIS SECOND GO AROUND WITH DISD. -- WITH DISNEY. BOB IGER HAS EXPRESSED -- SUCCESSION. WHO WILL SUCCEED BOB IGER. HOW THEY ACHIEVED PROFITABILITY
WHEN IT COMES TO STREAMING AND ACHIEVED NETFLIX LIKE PROFITABILITY. THAT HAS ALSO COME UP. THOSE ARE THINGS INVESTORS WILL WATCH. ED: BOB IGER PROMISED PROFITABILITY BY THE END OF 2024 COME IN IF YOU HAVE A PROXY BATTLE, YOU ARE OFTEN IN THE MEDIA WHERE YOU SAY I AM DOING THIS AND EVERYTHING IS GREAT, THE PRESSURE IS ALSO ON BOB IGER BECAUSE ONE OF HIS ADVERSARIES -- ELON MUSK -- IS STILL TALKING ABOUT THIS ON SOCIAL MEDIA AND IT IS AN INTERESTING DYNAMIC. CRYSTAL:
ELON IS SOMEONE NELSON PELTZ HAS CALLED A PERSONAL FRIEND AND HE THINKS VERY HIGHLY OF ELON MUSK. ELON MUSK TWEETED HE THINKS NELSON PELTZ SHOULD BE ON THE DISNEY BOARD. HE TWEETED IT AFTER THE RETAIL VOTING DEADLINE WAS CLOSED. I DO NOT THINK IT ACHIEVED VERY MUCH WHEN IT COMES TO VOTES FOR NELSON PELTZ. ELON MUSK IS INTERESTED IN THIS SITUATION. WHETHER HE WILL GO AGAINST BOB IGER, WE DID NOT SEE THAT.
DEFINITELY AN INTERESTING DYNAMIC WITH ALL OF THE HIGH-PROFILE BILLIONAIRES. ED: IT IS INTERESTING. AT THE END OF THE DAY, SOURCES TOLD US 94% OF THE VOTE WENT TO BOB IGER REELECTION. TERRIFIC REPORTING. COMING UP, WE WILL BRING YOU THE LATEST IN FUNDRAISING NEWS. WE WILL BE JOINED BY ELEANOR CRESPO.
AND A CHIP START UP THAT WANTS TO MAKE THE AI IN CARS AND ROBOTS GO FASTER. CAROLINE: PIGMENT, A BUSINESS PLANNING PLATFORM HAS RAISED ANOTHER 45 MILLION. IT IS LED BY ICONIC GROWTH BUT OTHER INVESTORS LIKE FELIX CAPITALIST ON BOARD AFTER THE LATEST FINANCING.
PLEASE WELCOME PIGMENT CO-FOUNDER ELEONORE CRESPO. THE FIRST QUESTION IS WHAT YOU DO WITH THE MONEY, WHERE ARE YOU DEPLOYING THE MONEY? ELEONORE: THANK YOU FOR HAVING ME. IT IS VERY SIMPLE. WE HAVE BEEN VERY LUCKY TO DO THIS FUNDRAISING. WE HAD -- WE DID THREE IN OUR REVENUE AND MANAGE TO SIGN AMAZING CUSTOMERS. WHAT WE DO IS SIMPLE. THE FREEDOM TO INNOVATE. WE LAUNCHED 100 PRODUCT
INNOVATIONS WITH PIGMENT. WE PLAN TO KEEP INNOVATING VERY FAST. WITH AI AND MANY OTHER THINGS THAT WILL BE SUCCESSFUL IN THE FUTURE. CAROLINE: LET'S TALK ABOUT THAT INNOVATION AND FREEDOM TO DO SO. PRODUCT INNOVATION HAS BEEN GIVING GENERATIVE AI FOR PEOPLE TO USE ACROSS DIFFERENT PARTS OF THEIR BUSINESSES. HOW IS GENERATIVE AI HELPING WITH STRATEGIC PLANNING.
ELEONORE: GENERATIVE AI HAS AMAZING APPLICATION WITH PIGMENT. PIGMENT USED GENERATIVE AI TO DEMOCRATIZE ACCESS TO DATA. OUR CUSTOMERS WANT TO GIVE ACCESS TO DATA TO AS MANY DECISION-MAKERS AS POSSIBLE IN THE COMPANY. WITH THE OF GENERATIVE AI IT
WILL BE MADE POSSIBLE BECAUSE YOU CAN ASK ANY QUESTION IN NATURAL LANGUAGE. OUR CUSTOMERS TODAY WITH PIGMENT CAN ASK A QUESTION SUCH AS WHAT WAS MY P&L IN THE U.S., GIVE ME MY GROWTH NUMBER. THIS IS A PHENOMENAL REVOLUTION
FOR COMPANIES. ED: IT IS ED IN NEW YORK. YOU TALKED ABOUT 3XING REVENUE. THE LAST TIME YOU WERE ON THE SHOW YOU ALSO SAID WHEN HE RAISED THE FUNDS YOU DID NOT NEED THEM. WHAT HAS CHANGED OVER THE LAST NINE MONTHS AND WHAT THE COMPANY HAS BEEN UP TO? ELEONORE: I THINK THE EXACT SAME STORY IS FROM OUR INTERNAL INVESTORS. WE HAVE A LOT OF INTEREST IN
THE PAST TWO MONTHS FROM EXTERNAL INVESTORS GIVEN WE MANAGED TO GROW MARKET. WE SIGNED FORTUNE 500 CUSTOMERS IN THE LIKES OF UNILEVER, MERCK. I THINK AT THE END OF THE DAY WHAT IS ALWAYS VERY IMPORTANT FOR US IS TO HAVE THE FREEDOM TO EXECUTE. ICONIC DECIDED TO DOUBLE DOWN AMONG OTHERS TO TELL US, WE HEAR AND WE WILL LET YOU INNOVATE IN THE U.S. AND EUROPE AT THE PACE WE NEED TO GO AT. CAROLINE: THE PACE, BECAUSE YOU ARE
EXPANDING GEOGRAPHICALLY. NOW YOU SAY MOST OF YOUR COMPANY'S REVENUE IS COMING FROM THIS REGION. WHERE ARE THE PAIN POINTS? IS THAT THE TALENT YOU NEED TO ON BOARD TO ENSURE YOU ARE MEETING CLIENTS WHERE THEY ARE AT? ELEONORE: I THINK ONE OF THE AREAS OF EXPANSION IS THE U.S.. 50% OF OUR REVENUE TODAY COMES FROM THE U.S. AND THIS IS OUR NUMBER ONE MARKET. A BIG CHALLENGE IS TO KEEP DOUBLING DOWN AND KEEP SENDING FORTUNE 500 COMPANIES.
THE MOST IMPORTANT IS TO BUILD A PRODUCT THAT SATISFIES THE CUSTOMER BASE AND THIS IS WHERE WE ARE GOING TO SPEND MOST OF OUR TIME TO CREATE THIS INCREDIBLE PLATFORM. ONE OF THE OTHER CHALLENGES FOR US IS WE ARE CREATING THIS PRODUCT PLATFORM BECAUSE IT IS A PLATFORM THAT CAN START ANYTHING IN A COMPANY. THE CHALLENGES ANY INDIVIDUAL, THIS IS WHAT WE ARE BUILDING. ED: ELEONORE CRESPO. GREAT TO HAVE YOU BACK ON THEIR SHOW. CHIP STARTUP JUST RAISED $70
MILLION IN A NEW ROUND OF MAVERICK CAPITAL, THE GOAL TO DEVELOP CHIPS TO SPEED UP AI APPLICATIONS WITHIN EVERYDAY CONSUMER DEVICES FROM CAMERAS TO CARS. HERE WITH MORE IS THE CEO. SAME QUESTION. WHAT DO YOU USE THAT MONEY FOR? >> WE ARE BUILDING UPON THE MOMENTUM WE HAVE IN OUR PRODUCT. AS WE TALKED ABOUT OUR PRODUCT FOCUSES ON SOLVING PROBLEMS IN ROBOTICS, AUTOMOTIVE, MEDICAL, AND SMART VISION SYSTEMS. WE ARE EXTENDING THAT PLATFORM INTO GENERATIVE AI APPLICATIONS AND WE WILL BE USING THE CAPITAL TO ACCELERATE DEVELOP AND FOR GENERATIVE AI.
ED: LET'S TALK ABOUT THE TECHNOLOGY. IS THIS BASICALLY A DATA CENTER CHIP THAT IS MORE TARGETED AT TRAINING NEURAL NETWORKS? KRISHNA: WE ARE FOCUSED ON A DIFFERENT MARKET SPACE. THE PLAUT AND THE CONSUMER EXPERIENCE IN AI HAS BEEN WELL-BUILT OUT. WE ARE FOCUSED ON THE EDGE
MARKET. THAT IS THE FOCUS FOR US. WE ARE NOT IN THE TRAINING BUSINESS, WE ARE IN THE INFERENCE BUSINESS WHERE PEOPLE CAN APPLY APPLICATIONS ON OUR CHIPS DIRECTLY. ED: IS AN INTERESTING CHOICE. AMD DID SOMETHING SIMILAR. THEY CAME OUT WITH GENERATION AND SAID WE ARE MOSTLY FOCUSED ON INFERENCE BECAUSE THE TRAINING HAS BEEN DONE. WHAT KINDS OF COMPANIES ARE YOU SEEKING TO PARTNER WITH THAT HAVE DONE THE TRAINING? KRISHNA: THIS IS ALMOST EVERY MASSIVE AI COMPANY. YOU CAN TAKE THE TOP FIVE
LEADERS IN ROBOTICS, INDUSTRIAL AUTOMATION, OR AUTOMOTIVE OR THE MEDICAL MARKET. WE WERE ENGAGED WITH THE TOP FIVE CUSTOMERS IN THESE MARKETS GLOBALLY AND WE ARE SCALING. TODAY WE ARE ENGAGED WITH 50 CUSTOMERS AT THE NEXT FEW YEARS WE WILL BE INCREASING OUR REACH 1000 PLUS. ED: WHEN IT -- CAROLINE: POINTED COMES TO YOUR FUNDRAISER, YOU SAY THIS IS ABOUT SCALING. IS IT THAT YOU NEED TO SPEND MORE ON TALENT, ON INFRASTRUCTURE? WHERE ARE SOME OF THE AMOUNTS YOU NEED TO BE DOUBLING DOWN IN? KRISHNA: ALL OF THE ABOVE. R&D TALENT IN AI IS SOMETHING WE NEED TO AGGRESSIVELY KEEP UP WITH WITH THE TECHNOLOGY CHANGING AT SUCH A FAST PACE.
WE NEED TO MAKE SURE WE ARE LEADING THE PACK. THAT IS ONE AREA OF INVESTMENT. THE SECOND IS GO TO MARKET. AI ADOPTION IS STILL NASCENT. THE PLAT IN THE CONSUMER MARKET HAS ADOPTED IT QUITE WELL. THE EDGE MARKET WILL BE THE NEXT GOLD RUSH FOR AI. REACHING THESE CUSTOMERS, AND
UNLIKE THE CLOUD AND CONSUMER MARKET IS REACHING THOUSANDS OF CONSUMERS. ENABLING THE TECHNOLOGY AND MAKING IT EASY TO USE. CAROLINE: WHAT WILL BE THE POWER OF THE TECHNOLOGY IN 10 YEARS I CANNOT DO NOW? KRISHNA: EVERYTHING WE TOUCH IN OUR LIFE WILL HAVE AI.
MUCH LIKE WE INTERACT WITH HUMAN BEINGS WILL BE ABLE TO INTERACT WITH VISION -- MUCH LIKE WE INTERACT WITH HUMAN BEINGS, WE'LL BE ABLE TO INTERACT WITH TOUCH AND FEEL AND TECHNOLOGY IN A WAY WE CANNOT IMAGINE BEFORE. TODAY SYSTEMS ARE UNIMODAL AND THAT YOU DO COMPUTER VISION OR AUDIO OR TEXT. YOU WILL SEE MERGED PLATFORMS, WHICH IS A NEW TREND CALLED MULTIMODAL GENERATIVE AI. YOU WILL DO EVERYTHING YOU DO WITH THE HUMAN BEING BUT NOW WITH EVERY APPLIANCE THAT WILL BE AROUND. ED:
HAVE YOU PHONED TESLA TO PICTURE TECHNOLOGY FOR THE OPTIMIST PROGRAM? KRISHNA: WE ARE REACHING OUT TO MANY CUSTOMERS. WE ARE LEADING THE INDUSTRY IN WHAT WE ARE DOING TODAY AND THREE VECTORS. WE ARE LEADING THE TECHNOLOGY ROADMAP IN THE PERFORMANCE WE OFFER ON OUR AI PLATFORM. WE ALL ARE A -- WE ARE ALSO LEADING IN TERMS OF POWER EFFICIENCY.
THE THIRD THING IS THE FUSE. WE ARE ENGAGED WITH A LOT OF CUSTOMERS TODAY. WE HAVE VERY BIG AMBITIONS FOR THE COMPANY AND ONE DAY WE WANT TO BE THE DEFECTIVE LEADER SERVICING 10,000 CUSTOMERS GLOBALLY. CAROLINE: MILLIONS GOING A LONG WAY FOR THAT. IT IS GREAT TO HAVE TIME WITH
YOU. THANK YOU FOR COMING IN. COMING UP, APPLE EXPLORING A PUSH INTO PERSONAL ROBOTICS. MAYBE THERE IS THE ENCZ APPLICATION WE WILL BE SEEING. MORE DETAILS ON THAT IN A MOMENT. ED: INVESTING 3.9 BILLION DOLLARS INTO A U.S. SEMICONDUCTOR FACILITY IN INDIANA.
THERE IS ALSO OVERNIGHT FEEL GOOD ON KOREAN SHARES BECAUSE THERE ARE SIGNS THEY HAVE WEATHERED THE SITUATION IN TAIWAN WHERE THEY HAVE SOME EXPOSURE. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." ED: LET'S CHECK ON THE MARKETS. IT'S BEEN A BIT OF A WONKY WEEK WHEN IT COMES TO THE NASDAQ 100. UP .7% IN TODAY'S SESSION. NEAR THE SESSION LOWS. THE LATEST ECO DATA BEING JOBLESS CLAIMS, MATCHING CUTS WE HAVE SEEN IN JOBS. WE PUT OUR FOCUS ON FRIDAY WHEN WE GET JOBS REPORT DATA. WHAT HAPPENS WHEN THE FED --
WITH THE FED? WE LOOK AT THE TECH NAMES. HOW SENSITIVE THE RATES ARE THE? WHEN WILL THE FED START CUTTING RATES? THIS IS A CONVERSATION WE'VE HAD FOR MANY YEARS NOW. ONE OF THE NAMES THAT HAS A BIG BALANCE SHEET IS APPLE. UP FOUR PERCENTAGE POINTS IN THE SESSION. IT HAS SOME INTERESTING MOVES TICK BY TICK OVER THE LAST TWO SESSIONS OR SO.
ONE REPORT FROM BLOOMBERG IS APPLE'S NEXT BIG THING IS A ROBOT THAT FOLLOWS YOU AROUND THE HOUSE. HERE WITH THIS GROUP, WHO ELSE, MARK GURMAN. THIS WAS AN INTERESTING ONE. THERE IS TECHNOLOGY PARALLELS FOR THIS LATEST INITIATIVE OUT OF PROJECT TIGHTEN. EXPLAIN THE ROBOT THAT FOLLOWS YOU AROUND THE HOUSE. MARK: THANK YOU SO MUCH FOR HAVING ME. YOU ARE ABSOLUTELY RIGHT.
A SELF-DRIVING CAR ESSENTIALLY IS A ROBOT. THE BIG DIFFERENCE BETWEEN A SELF-DRIVING CAR THAT ROAMS AROUND CITY STREETS AND ONE THAT ROAMS AROUND YOUR HOUSE IS THE LIABILITY AND SAFETY. IF THE SELF-DRIVING CAR STOPS WORKING PROPERLY ON THE ROAD, MAYBE YOU GET INTO A CAR ACCIDENT AND POTENTIALLY KILL SOMEONE, UNFORTUNATELY. IF YOUR SELF-DRIVING ROBOT CRASHES INTO A WALL IN YOUR HOME, SO WHAT? IT IS SIMILAR TECHNOLOGY BUT THE STAKES ARE SO MUCH LOWER. THE NECESSITY TO BE ACCURATE IS SO MUCH LOWER. IT IS AN EASIER THING TO PULL
OFF AND IT FEELS LIKE THE TIMING IS RIGHT FOR APPLE TO BE EXPLORING THIS. IF YOU THINK ABOUT THE BACKDROP WHEN THE APPLE CARD PROJECT WAS CANCELED, THE NEWFOUND STRUGGLES BEING FACED BY TESLA, THE PROFITABLY ISSUES FACED BY LUCID AND RIVIAN AND ANY EV MAKER YOU CAN THINK OF. YOU ARE SEEING THE TECHNOLOGY INDUSTRY SHIFT TO AI POWERED HARDWARE. YOU ARE SEEING TALK ABOUT HUMANOID ROBOTS. IT DOES MAKE SENSE FOR APPLE TO BE EXPLORING THIS SHIFT. CAROLINE: IT HAS NOT HAD A WONDROUS TIME SINCE THE UNFOLDING OF AN AMAZON ACQUISITION. I'M INTERESTED INTO WHERE THIS
GETS BUILT WITH AN APPLE. THEY HAVE BEEN SAYING THEY ARE MOVING AROUND A LOT OF THE ULTIMATE TALENT TO GO INTO NAI AREA, GENERATIVE AI. WHO BUILDS THIS WITHIN APPLE? MARK: PRAY QUESTION. -- GREAT QUESTION. THE ARTIFICIAL INTELLIGENCE ORGANIZATION -- HE USED TO RUN SEARCH AND WAS AT GOOGLE BEFORE JOINING APPLE IN 2018. SOME OF THE UNDERLYING AI IN ROBOTICS WORK IS GOING ON WITHIN HIS ORGANIZATION. APPLE HAS A HARDWARE ENGINEERING GROUP DEDICATED TO HOME DEVICES.
THAT IS RUN BY A GUY NAMED MATT COSTOLO WHO WAS THE CHIEF OPERATING OFFICER AT BEATS UNTIL IT WAS ACQUIRED BY APPLE A DECADE AGO. THIS IS A CROSS COMPANY EFFORT BETWEEN THOSE TWO GROUPS PRIMARILY. THE OTHER THING I WANT TO CALL OUT, APPLE IS VERY DEFINITELY EXPLORING THE ADDITION OF ROBOTICS OTHER TYPES OF DEVICES.
ONE THING THEY HAVE BEEN WORKING ON SECRETLY FOR ABOUT THREE YEARS, FOUR AT THIS POINT IS A TABLETOP ROBOT. IT'S A GIGANTIC IPAD ON A ROBOTIC ARM. IT'S PRETTY COOL. YOU CAN BE ON A FACETIME CALL AND THE DISPLAY WOULD MOVE TO MIMIC THE HEAD MOVEMENTS LIKE AN AUTO YOUR HEAD TURNING OR A LAUGH ON THE OTHER SIDE OF THE FACETIME CALL. DID FEELS A BIT MORE LIKE A TELEPRESENCE ENVIRONMENT. CERTAINLY, ROBOTICS WHOLEHEARTEDLY I BELIEVE IS A NEW BIG AREA FOR APPLE MOVING FORWARD.
THEY ARE STARTING TO THROW A LITTLE RESOURCES AT IT. I THINK THAT WILL GROW EXPONENTIALLY OVER THE NEXT SEVERAL YEARS. ONE THING TO NOTE IS ALL THE HUNDREDS AND HUNDREDS OF PEOPLE WERE LAID OFF ON THE APPLE CARD PROJECT AND NO LONGER HAVE A JOB AT APPLE, A FEW TEAMS FROM THAT PROJECT WERE REPURPOSED FOR SOME OF THIS AI ROBOTICS WORK. CLEARLY IN INTENSE AREA OF FOCUS RIGHT NOW, ALBEIT EXTORT NEARLY EARLY IN THE PRODUCT DEVELOP PROCESS. CAROLINE: WHEN YOU BELIEVE SOMETHING WHOLEHEARTEDLY THE WORLD BELIEVES SOMETHING WHOLEHEARTEDLY. THANK YOU VERY MUCH INDEED, MARK GURMAN, RT APPLE CORRESPONDENT. COMING UP, A DEEP DIVE FOR YOU.
BRAD LIGHTCAP JOINING US FOR A DISCUSSION. THE STATE OF ENTERPRISE AI ADOPTION AND CONSUMER AI ADOPTION. SOME OF THE AREAS OF FOCUS FOR THEM, LEGAL ON ONE SIDE AND OPPORTUNITIES ON THE NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ ED: FOR OUR TELEVISION AND RADIO AUDIENCES WORLDWIDE, OPENAI IS ON TOP OF MIND, INCLUDING FOR ELON MUSK AND POSTED OVERNIGHT HIS EV COMPANY TESLA IS HAVING TO BOOST COMPENSATION TO WARD OFF APPROACHES FOR IS AI TALENT. THAT INCLUDES OPENAI.
ETHAN KNIGHT WAS APPROACHED BY OPENAI SO MUSK MOVED INTO HIS NAI COMPANY, X AI. LET'S TALK ABOUT TALENT. LET'S TALK ABOUT WAS HAPPENING IN THE WORLD OF ARTIFICIAL INTELLIGENCE. BRAD LIGHTCAP, OPENAI COO JOINS US IN NEW YORK CITY. THERE'S AN ACCUSATION THAT
NOTHING WRONG WAS DONE BUT IT HIGHLIGHTS AN INTERESTING POINT. THERE IS A LOT BEING DONE IN THE TRAINING IN THE FUTURE GENERATION MODELS. THERE'S A FINITE AMOUNT OF TALENT. IF THE OPENAI SIDE OF THE EQUATION, HOW MUCH OF A PREMIUM ARE YOU HAVING TO PAY OUT FOR BENEFITS, SALARY, STOCK, OR ENGINEERING FREEDOM TO GET THE TOP NAMES? BRAD: THANK YOU FOR HAVING ME. GREAT TO BE WITH YOU. THIS IS A COMPETITIVE MARKET FOR SURE. IT'S AN AMAZING PLACE WE ARE AT.
THERE ARE FEW NUMBERS OF PEOPLE THAT CAN MAKE SUCH EMETIC IMPACT IN THE FIELD. WE TRY AND PULL PEOPLE INTO OUR MISSION. THAT HIS HISTORICALLY BEEN OUR STRENGTH. PEOPLE WANT TO BUILT IN THE PLACE WHERE WE ARE PUSHING THE FRONTIER THE FURTHEST AND WHERE WE THINK ABOUT THE IMPACT OF THE TECHNOLOGY BOTH ON A SOCIETAL LEVEL AND ON AND APPLIED LEVEL. ED: HOW BIG IS OPENAI NOW? HOW MANY EMPLOYEES AND WHERE ARE THEY? BRAD: ABOUT 1200 PEOPLE. MOSTLY IN SAN FRANCISCO BUT ALSO IN LONDON, DUBLIN, INCREASING THE OTHER PLACES IN THE WORLD. ED:
THE REPORTING WAS JAPAN IS THE NEXT FRONTIER FOR YOU. WHAT IS THE STRATEGY THERE AND WHERE YOU CHOOSE -- I DON'T KNOW IF YOU CALL IT OPENING A NEW MARKET BUT WHERE YOU HAVE OPERATIONS? BRAD: WE HAVE A VERY GLOBAL BASE OF DEMAND. WE WANT TO SHOW UP WHERE THE CUSTOMERS ARE. WE THINK THIS WILL BE A GLOBAL TRANSFORMATION. WE FEEL A LOT OF PULL FROM PLACES LIKE JAPAN AND ASIA BROADLY. WE WILL SHOW UP WHERE WE FEEL LIKE WE NEED TO BE. CAROLINE:
LET'S TALK ABOUT WHERE YOU SHOW UP AN INDUSTRY PERSPECTIVE. SAM AND THE TEAMS HAVE BEEN IN HOLLYWOOD DISCUSSING HOW SORA CAN BE USED. YOU HAVE A WORKING RELATIONSHIP WITH COMPANIES AND INDUSTRIES THAT THINK THEY WILL BE UPENDED. TELL US HOW THOSE CONVERSATIONS ARE GOING WITH HOLLYWOOD AND PUBLICATIONS. BRAD: WE TAKE A UNIQUE PERSPECTIVE HERE. WE MODEL OPENAI AS A PARTNERSHIPS COMPANY. WE THINK THE TRANSPORTATION WILL BE VERY BROAD-BASED -- TRANSFORMATION WILL BE BROAD-BASED.
WE CAN'T DO EVERY THING OURSELVES. FINDING WAYS TO PARTNER WITH INDUSTRY, WITH COUNTRIES, WITH SPECIFIC COMPANIES, THAT'S IMPORTANT TO OUR MISSION AND THE WAY WE THINK ABOUT BRINGING TECHNOLOGY TO THE WORLD. A RECENT EXAMPLE, WE WORKED WITH THE PUBLISHING INDUSTRY RIGHT NOW ON WAYS WE CAN DEPLOY AI INTO PUBLISHING TO MAKE THE QUALITY OF JOURNALISM BETTER, TO MAKE THE QUALITY OF READER EXPERIENCES BETTER. WE HAVE HEARD NOTHING BUT
REALLY -- A LOT OF ENTHUSIASM FROM THAT INDUSTRY. WE ARE LOOKING AT WAYS WE CAN PARTNER WITH INDUSTRY. I EXPECT MORE FROM US IN THE FUTURE ON THIS FRONT. IT'S A GREAT EXAMPLE OF WHERE WE REALLY ARE EXCITED ABOUT THE IMPACT WE CAN MAKE IN MEDIA. CAROLINE: MEDIA COMPANIES IN EUROPE FOR EXAMPLE SEEM TO HAVE GOBBLED THAT QUITE QUICKLY.
A KEY DEAL YOU BIRTHED EARLY DAYS. PERHAPS A LITTLE MORE BLUE LINKS WITHIN CHATGPT. NEW YORK TIMES ON THAT DISCUSSION POINT. HOW IS THAT LEGAL FIGHT AND THE BEHIND-THE-SCENES DISCUSSION GOING WITH THOSE COMPANIES? BRAD: I CANNOT COMMENT ON THE NEW YORK TIMES CASE SPECIFICALLY OTHER THAN TO SAY WE THINK IT IS WITHOUT MERIT. THE OVERWHELMING MAJORITY OF WHAT WE HEAR FROM THE PUBLISHING INDUSTRY IS QUITE POSITIVE. THERE'S A HIGH LEVEL OF EXCITEMENT ABOUT WHAT THESE TOOLS CAN DO BOTH TO UNLOCK BETTER JOURNALISM, TO GIVE READERS ACCESS TO INFORMATION, TO ENHANCE THE WAY PEOPLE ENGAGE WITH CONTENT.
THE WAY WE ACTUALLY THINK ABOUT THE FUNDAMENTAL BUSINESS OF INFORMATION ENGAGEMENT AND CONSUMPTION, THESE ARE ALL POSSIBLE NOW WITH LANGUAGE MODELS. INCREASINGLY WITH MULTIMODAL MODELS TOO. WE ARE JUST STARTING TO SCRATCH THE SURFACE ON THAT OPPORTUNITY. STAY TUNED. CAROLINE: YOU ARE BEING OPTIMISTIC. OF COURSE YOU ARE. I COME AWAY FROM MEETINGS WHERE HOLLYWOOD IS DEEPLY ANXIOUS. PEOPLE IN MY INDUSTRY ARE
DEEPLY ANXIOUS. EVERYONE WITH A JOB IS HOW TO FIGURE OUT HOW TO INCORPORATE AI. THERE IS OPEN VERSUS CLOSED. YOU'RE GOING FOR ANOTHER LEGAL FIGHT AT THE MOMENT. THEY WANT YOU TO RENAME YOURSELF. 40 SET ON THE CLOSED VERSUS -- WHERE YOU SIT ON THE CLOSED VERSUS OPEN? BRAD: WE FOCUSED ON WHERE WE CAN DEPLOY THE TECHNOLOGY AND THE BEST WAY TO DO THAT.
WE WILL FOCUS ON WHERE OUR CUSTOMERS ARE IN THE WAY THEY WANT TO DEPLOY IT. WE WORK WITH THOUSANDS OF ENTERPRISES ACROSS THE WORLD. WE SPENT TIME WORKING WITH THOSE ENTERPRISES ON WAY WE CAN CONFIGURE THE TECHNOLOGY SPECIFIC TO THEIR USE CASE AND STACK. WE THINK THE EASIEST WAY IS THE WAVE WE SERVE IT. IT IS NOT THAT WE WOULD NOT LOOK AT OTHER WAYS IN THE FUTURE. WE WANT TO BE WHERE WE THINK THE BEST PRICE TO THE POINT THE TECHNOLOGY IS GOING TO BE. ED:
WE ARE IN NEW YORK CITY SPEAKING TO OPENAI COO BRAD LIGHTCAP. I WANT TO LEARN MORE ABOUT WHERE OPENAI SITS IN HIS GROWTH, ITS DAY-TO-DAY OPERATIONS. YOU SAID THOUSANDS OF ENTERPRISES. WE CAME TO KNOW YOU BECAUSE OF
THE EXPLOSIVE RESPONSE TO CHATGPT. THAT WAS PRINCIPALLY IN THE CONTEXT OF THE CONSUMER FACING CHATBOT. IT SOUNDS VERY MUCH LIKE GROWTH IS FOCUSED ON THE ENTERPRISE ARRANGEMENT LICENSING OF TECHNOLOGY. CAN YOU GIVE ME PROPORTIONS? THE RATE OF GROWTH FOR THOSE TWO PILLARS? BRAD: WE HAVE SEEN TREMENDOUS GROWTH IN THE ENTERPRISE.
2024 WILL BE THE YEAR OF ADOPTION IN THE ENTERPRISE. WE FELT LIKE 2023 WAS THE ARE PEOPLE JUST STARTED TO WRAP THEIR HEAD AROUND WHAT WAS POSSIBLE WITH AI AND THE ENTERPRISE. THE MARKET IS PULLING US TOWARDS REAL APPLICATIONS THAT ARE DELIVERING REAL BUSINESS RESULTS AND A BROAD FOCUS ON AI ENABLEMENT. HOW DO WE THINK ABOUT BRINGING AI BOTH TO OUR OPERATIONS BUT ALSO TO OUR WORKFORCES? ALSO TO NEW-PRODUCT EXPERIENCES WE CAN DELIVER TO CUSTOMERS? WE WORK WITH 20 OF COMPANIES DOING ALL THREE OF THOSE THINGS AT THE SAME TIME. WE THINK THAT IS VERY POSSIBLE. IS HAVING DRAMATIC BOTTOM-LINE IMPACTS TODAY. THIS IS WHAT WE THINK OF PULL
IS GOING TO BE AND WE ARE READY TO SUPPORT. ED: YOU ARE THE COO. I'M ASSUMING YOU ARE RESPONSIBLE FOR SOME OF THE PURSESTRINGS INVOLVED IN OPENAI'S FINANCES. COMPUTE MUST BE A CONSIDERABLE COST RIGHT NOW. WITH THAT THE ENERGY CONSIDERATION AS WELL. ARE YOU MAKING ENOUGH REVENUE FROM THOSE ENTERPRISE BUSINESSES TO KEEP THE LIGHTS ON WHEN YOU FACTOR IN THE COMPUTE COSTS INVOLVED? BRAD: YES. WE THINK WE HAVE A DIVERSIFIED BUSINESS.
WE SERVE HUNDREDS OF MILLIONS OF USERS WITH OUR CHATGPT PRODUCT. MANY OF THOSE USERS ARE PAYING USERS. WE SERVE NOW OVER 600,000 INDIVIDUAL USERS IN THE ENTERPRISE WITH CHATGPT ENTERPRISE. WE ARE SEEING TREMENDOUS MOMENTUM. WE ARE EARLY ENDINGS ON THIS. WE LOOK AT IT AS THIS IS THE
START OF SOMETHING. ULTIMATELY, OUR PRE-ALREADY IS TO DELIVER THE BEST INTELLIGENCE WHETHER IT IS IN THE ENTERPRISE OR TO INDIVIDUALS AND THAT DRIVES THE BIGGEST BUSINESS IMPACT. ED: THINKING BACK TO THE CONVERSATION THE OTHER DAY WITH DANIEL ON MONDAY FROM ANTHROPIC. WHAT SHE EXPLAINED WAS THE RELATIONSHIP AWS AND BEDROCK, THEY ARE GETTING A LOT OF BUSINESS THROUGH THAT. YOU HAVE A QUITE SIMILAR AND ACTUALLY PRE-EXISTING SITUATION WITH MICROSOFT AND AZURE. ARE YOU ABLE TO EXPAND HOW MUCH NEW BUSINESS COMES THROUGH THAT CONDUIT OF THE MICROSOFT RELATIONSHIP? WHAT WILL PROBABLY BE IS YOUR ENTERPRISE CUSTOMERS? BRAD: WE ARE FORTUNATE TO HAVE MICROSOFT AS A PARTNER. THEY HAVE BEEN AN AMAZING
PARTNER FOR SOME TIME. WE HAVE LOOKED AT THE WORLD AS WAYS WE CAN BRING OPENAI TECHNOLOGY TO LIFE TOGETHER. WE ARE VERY FORTUNATE THEY ARE OFFERING OUR MODELS THROUGH THEIR ASIA OR OPENAI SERVICES -- AZURE OPENAI SERVICES. ED: IS THAT ONE BIGGER THAN THE MICROSOFT AVENUE? BRAD: IT IS FLUID BETWEEN THE TWO. WE ARE FOCUSED ON WHAT IS BEST
FOR THE COMPANIES WE WORK WITH. WE ARE FORTUNATE TO BE ABLE TO DIVERSIFY THE SERVICES WHICH WE OFFER OUR PRODUCTS. WE THINK THE DEMAND IS MASSIVE. BEING A SMALLER COMPANY, HAVING A PARTNER THAT CAN HELP BRING THE TECHNOLOGY TO SCALE IS REALLY ADVANTAGEOUS FOR US. WE ARE EXCITED TO SUPPORT THEM IN THE FUTURE. CAROLINE: IT'S A VERY NOVEL KIND OF
PARTNERSHIP. THE WHOLE OF AI IS BIRTHING THESE FRENEMY RELATIONSHIPS. I THINK OF DEALS THAT SEEM TO BE GOING THAT MICROSOFT IS SEEMINGLY THE WHOLE OF INFLECTION. WHAT DID YOU MAKE OF THAT PARTICULAR MOVE WHEN SUDDENLY YOU HAVE THE COFOUNDER OF DEEP MIGHT COMING INTO BE THE HEAD OF CONSUMER AI AT MICROSOFT AND YOU PUT OUT A RESPONSE TO THAT.
HOW DID THAT MAKE YOU FEEL AS THE PREVIOUS PARTNER OF CHOICE FOR MICROSOFT? BRAD: WE ARE EXCITED FOR THEM. WE CONGRATULATED THE TEAM. WE WORK CLOSELY WITH MICROSOFT. WE THINK THAT WILL BE A MAJOR ADVANTAGE FOR OUR PARTNERSHIP AS WELL. WE ARE FOCUSED ON WHAT WE CAN CONTROL IN THE OPENAI SIDE, WHICH FOR US IS THINKING ABOUT THE NEXT WAVE OF THE TECHNOLOGY AND THINKING ABOUT WAYS THAT WAVE IS GOING TO START TO ENABLE BUSINESSES. THE MORE WE CAN THINK ABOUT THAT TOGETHER THE MORE WE WILL BE. ED: A LOT OF CEOS, SOME ARE YOUR CUSTOMERS AND THEY SAY THE TECHNOLOGY -- THEY ARE TECHNOLOGY AGNOSTIC.
THEY MIGHT USE ANOTHER FOUNDATION MODEL. THEY MIGHT BE BUILDING THEIR OWN IN PARALLEL. WHEN HE TOLD OUR PEOPLE A LOT OF PEOPLE WANTED TO GET YOUR THOUGHTS ON THE PALANTIR RELATIONSHIP. IT'S AN INTERESTING CASE STUDY. THEY SEEM TO BE ONE OF THE
BENEFICIARIES OF THE ENTERPRISE INVESTMENT IN AI, FOR THESE THE DATA ANALYTICS SITE. WHAT IS IT LIKE WORKING WITH ALEX KARP? BRAD: WE WORK WITH A BUNCH OF PARTNERS THAT HELP US BRING THE TECHNOLOGY TO LIFE. THERE ARE SOME ANYWAYS TO DEPLOY THE TECHNOLOGY.
THAT IS WHAT IS AMAZING ABOUT THIS TECHNOLOGY. IT IS NOT JUST ONE FUNCTION OF THE ENTERPRISE OR ONE PART OF THE ENTERPRISE STACK. IT IS SO DIVERSE AND SO BROAD-BASED. WE WORK WITH MANY PARTNERS TO BRING THAT TO LIFE. WE WILL CONTINUE TO LOOK FOR
PARTNERS TO WORK WITH TO HELP US DO THAT. YEAH. WE ARE EXCITED WITH THE WAY PALANTIR HAS BEEN EVENLY -- ENABLING CUSTOMERS ON OUR TECHNOLOGY AND WE WILL SUPPORT THEM GOING FORWARD. ED: EVERYDAY CROSSES MY DESK -- I'VE DONE A LOT OF REPORTING ON CHIP AMBITIONS. THERE'S A RELATIONSHIP BETWEEN THE UAE AND OPENAI. FUNDRAISING OR TECHNOLOGY PARTNERSHIPS. CAN YOU CLARIFY WHAT IS GOING ON THERE AND WHY YOU NEED TO RAISE FUNDS FROM SOMEWHERE LIKE THAT? BRAD: I WON'T COMMENT SPECIFICALLY ON THAT.
WE BELIEVE THERE IS NOT ENOUGH TOTAL SUPPLY IN THE WORLD. ED: OF AI ACCELERATORS? BRAD: AND THAT THE SUPPLY CHAIN WILL NEED TO WHAT WE THINK WILL BE THIS HIGHLY INFLECTED AND YEARLY X FINANCIAL DEMAND IN THE NEXT 10 YEARS. WE SPENT A LOT OF TIME THINKING ABOUT WAYS WE CAN MAKE SURE THAT DEMAND IS MET. PART OF IT IS BEING ABLE TO BRING OUR MODELS TO BEAR. THE UPSTREAM IS MAKING SURE THE ACTUAL UNDERLYING HARDWARE AND INFRASTRUCTURE ACES TO BUILD THE SYSTEMS WE NEED TO SERVE THAT DEMAND. WE THINK A LOT ABOUT IT. OUR HOPE IS THAT THE SUPPLY
CHAIN STARTS TO THINK ABOUT THAT THE SAME WAY WE DO. CAROLINE: YOUR MANIFESTO, YOUR FOCUS IS TO BUILD ARTIFICIAL GENERAL INTELLIGENCE FOR THE GOOD OF HUMANITY. I'VE SPEAK TO A LOT OF HUMANS WHO ARE TERRIFIED. CAN YOU ENCAPSULATE HOW YOU CAN WITHOUT REGULATION BEING IN PLACE YET AND THE EU PUTTING THE GOBLET OUT THERE, YOU ARE DOING ALL OF THIS WITHOUT DISRUPTING TOO MUCH TOO QUICKLY TOO HARD. BRAD:
CENTRAL TO OUR MISSION IS TO MAKE SURE WE BRING THE TECHNOLOGY IN A WAY THAT IS SAFE AND CREATES BROAD BENEFIT. IT IS ENCODED INTO HOW OPENAI WAS STRUCTURED AND IS THE THING WE SPEND OUR TIME THINKING ABOUT HOW TO DELIVER IN REAL WORLD RESULTS TODAY. WE ARE OPTIMISTIC. I CAN UNDERSTAND WHERE THE FEAR COMES FROM. THINGS ARE MOVING VERY FAST, EVEN FOR US AT THE CENTER OF US IT IS SOMETIME DIZZYING. OUR PERSPECTIVE IS THIS IS AN ENABLING TECHNOLOGY AT ITS CORE. HE WILL MAKE BUSINESSES MORE
EFFICIENT. IT CAN MAKE PEOPLE MORE PRODUCTIVE. IT CAN AFFECT HOW PEOPLE LEARN AND UNDERSTAND AFFIRMATION. THAT HAS A BROADLY POSITIVE
EFFECT. THE WORLD WHO TO 10 YEARS AND IT WILL BE WHEN WE LOOK BACK ON AND REALLY ARE EXCITED TO BE ABLE TO GO BUILT TODAY -- BUILD TODAY. THAT IS WHAT WE WAKE UP EVERY DAY WANTING TO DO. CAROLINE: WE WANT TO THANK YOU BEING IN THE HOUSE WITH US.
CEO OF OPENAI BRAD LIGHTCAP -- COO OF OPENAI BRAD LIGHTCAP. WE THANK HIM. COMING UP, PARAMOUNT GETTING CLOSER TO A DEAL THAT WOULD RESULT IN A MERGER WITH INDEPENDENT PRODUCER DAVID ELLISON'S SKY DANCE. MORE ON THOSE DETAILS NEXT. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: PARAMOUNT IS GETTING CLOSER TO A DEAL TO MERGE WITH SKYDANCE, A PRODUCTION COMPANY FOUNDED BY DAVID ELLISON, THE SON OF LARRY. SUMNER REDSTONE IS THE
CONTROLLING -- OF PARAMOUNT. BOTH AGREED ON THE BROAD FRAMEWORK OF THE DEAL. THEY WILL USE A 30 DAY WINDOW OF OCCLUSIVE TALKS TO IRON OUT THE DETAILS. ALL OF THIS ACCORDING TO SOURCES. ED, WHEN YOU DEEP DIVE ON THE MARKET REACTION, POSITIVE.
ANALYSTS ARE SAYING THERE WERE QUESTIONS AND ANSWERS. ED: I'M MORE CONFUSED ABOUT THE FUTURE OF PARAMOUNT. I KNOW THAT'S A COPOUT BUT THAT'S LITERALLY RAISING MORE QUESTIONS THAN ANSWERS. ONE CONCERN IS THIS DEAL WAS DONE BETWEEN VOTING RIGHTS SHAREHOLDERS.
WHAT ABOUT THE NONVOTING RIGHTS SHAREHOLDERS? IT'S VERY COMPLICATED. CAROLINE: WHERE IS THERE VALUE IN A MERGED ENTITY. RATHER THAN BEING SPLIT UP AS APOLLO IS SUGGESTING AND TAKING BITS OF THE ASSETS. ED: AND TAKING THE LIBRARY. CAROLINE: REAL OFFERS ON THE TABLE IS A KEY TAKEAWAY. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." ED: QUITE A CONVERSATION WITH OPENAI. CHECK IT OUT ON THE PODCAST.
THIS IS "BLOOMBERG TECHNOLOGY."
2024-04-29 20:19
