SAP and Carahsoft Get Probed, OpenAI’s White House Pitch | Bloomberg Technology
>> FROM THE HEART OF 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. SAP AND I.T. SOLUTIONS PROVIDER TERRA SOFT GET PROBED BY THE U.S. FOR POTENTIAL PRICE-FIXING. ED: OPENAI MAKES A PITCH TO THE
WHITE HOUSE AS FRANCE GETS READY FOR ITS OWN AI SUMMIT. CAROLINE: WIZ IS MULLING SELLING SHARES. FIRST LET'S GET TO OUR TOP STORY GERMAN SOFTWARE GIANT SAP PRODUCT RESELLER TARASOFF AND OTHER COMPANIES ARE BEING PROBED BY THE U.S. OFFICIALS FOR POTENTIALLY CONSPIRING TO OVERCHARGE GOVERNMENT AGENCIES. THE COURSE OF A DECADE SAP SHARES CURRENTLY TRADING LOWER ON THE REPORT. JAKE JOINS US WITH THE STORY,
YOU BROKE IT. WHAT EXACTLY IS BEING INVESTIGATED. >> THANK YOU FOR HAVING ME. THE INVESTIGATION IS INTO WHAT IS A POTENTIAL SCHEME TO OVER THE COURSE OF 10 YEARS OVERCHARGE THE U.S. GOVERNMENT AND THE DEPARTMENT
OF DEFENSE FOR PURCHASES OF SAP TECHNOLOGY THROUGH A VARIETY OF RESELLERS INCLUDING CARA SOFT THAT TOTAL UP TO $2 BILLION. >> WHAT A TERRA SOFT SPOKESPERSON TOLD YOU IS IMPORTANT IN THIS STORY IN THE CONTEXT OF A RAID THE TOOK PLACE. I GAVE YOU DETAILS BUT DID NOT GO AS FAR AS TO CONFIRM THAT IT RELATED TO RELATIONSHIP WITH SAP. PLEASE EXPLAIN THE REPORTING. >> ABSOLUTELY AND THAT IS A VERY IMPORTANT DETAIL.
YESTERDAY FBI AND DEPARTMENT OF DEFENSE INVESTIGATORS SEARCHED THEIR OFFICES IN VIRGINIA, HOWEVER WE DO NOT KNOW WHETHER OR NOT THAT SEARCH IS RELATED TO THIS SEPARATE CIVIL INVESTIGATION OF CARA SOFT AND SAP OVER THE POTENTIAL PRICE-FIXING. CAROLINE: LET'S DWELL A LITTLE BIT ON SOME OTHER COMMENTS COMING, SAP SAYS IT'S BEEN COOPERATING WITH THE DOJ IN TERMS OF THE CIVIL INVESTIGATION SINCE THE BEGINNING. WE UNDERSTAND ACCENTURE WAS ALSO INVOLVED IN THIS IN SOME WAY. A SPOKESPERSON SAYS FEDERAL
SERVICES IS RESPONDING TO A SUBPOENA COOPERATING WITH THE DOJ AND THE JUSTICE DEPARTMENT DID NOT RESPOND TO REQUESTS FOR COMMENT. WHAT'S INTERESTING IS OF COURSE THE MONEY YOU SAY AND THE AMOUNTS THAT ARE INVOLVED HERE. ULTIMATELY HOW WILL THIS INVESTIGATION CONTINUE AND WHAT COULD BE THE FINE ON THE BACK OF IT.
>> IT'S A GREAT QUESTION. WE DON'T ULTIMATELY KNOW WHETHER THERE WILL BE A FINE BUT WE DO KNOW FEDERAL INVESTIGATORS ARE CONTINUING THEIR WORK TRYING TO UNDERSTAND WHAT HAPPENED HERE AND THAT THEY ARE FRAMING THIS AS POTENTIAL WRONGDOING RELATED TO A VERY LARGE SERIES OF PURCHASES, HUNDREDS OF CONTRACTS TOTALING AS $2 BILLION SINCE 2014. AND AGAIN I SHOULD REALLY EMPHASIZE WE DO NOT KNOW ANY WERE INVOLVED OR ACCUSED OF ANY WRONGDOING BUT THIS IS BEING INVESTIGATED UNDER THE FALSE CLAIMS ACT AND THAT ALLOWS THE GOVERNMENT TO SEEK -- OR TO RECOVER AS MUCH AS THREE TIMES ITS DAMAGES PLUS A PENALTY SO WERE THAT LITIGATION TO SORT OF COMMENCE THEIR THE GOVERNMENT COULD BE LOOKING AT A LOT OF MONEY.
>> BLOOMBERG'S JAKE BLEIBERG THANK YOU. A KEY INTERVIEW WITH BLOOMBERG ALPHABET CEO SUNDAR PICHAI SAYS THE GOVERNMENTS -- THE COMPANY'S LEGAL BATTLES COULD DRAG ON FOR MANY YEARS. HE WAS COMMENTING ON THE FEDERAL ANTITRUST TRIAL WHICH THE JUSTICE DEPARTMENT IS ALLEGING GOOGLE MANIPULATES THE ROUGHLY 670 $5 BILLION DISPLAY ADVERTISING MARKET. HE SAT DOWN WITH DAVID
RUBENSTEIN FOR AN UPCOMING EPISODE OF PEER-TO-PEER, LISTEN TO THIS. >> THAT CASE IS SKATING -- IS JUST GETTING UNDERWAY SO I EXPECTED TO GET SOME TIME. WHERE WE CAN FIGURE OUT SOLUTIONS, I THINK WE WILL.
WHERE WE THINK IT REALLY HARMS OUR ABILITY TO INNOVATE ON BEHALF OF OUR USERS WE ARE GOING TO BE VIGOROUS IN DEFENDING OURSELVES AND IT WILL TAKE TIME FOR IT TO PLAY OUT. >> JUST TODAY, GOOGLE IS IN TURN WRAPPING UP A LEGAL FIGHT WITH MICROSOFT OVER THE LUCRATIVE CLOUD MARKET ACCUSING THE U.S. SOFTWARE GIANT OF ABUSING ITS MARKET DOMINANCE IN A FORMAL COMPLAINT TO THE EU'S ANTITRUST WATCHDOG. GOOGLE ALLEGES MICROSOFT LICENSING TERMS FOR AZURE CLOUD SERVICES RESTRICT CUSTOMERS ACCESSING THE RIVAL PLATFORMS INCLUDING GOOGLE CLOUD AND AMAZON WEB SERVICES. CAROLINE: LET'S TALK OPENAI. IT'S PITCHED ON THE NEED FOR
MASSIVE DATA CENTERS THAT COULD EACH USE AS MUCH POWER AS ENTIRE CITIES. THE EXPANSION IS NECESSARY TO ADVANCE AI MODELS AND COMPETE WITH CHINA. SETH JOINS US NOW. THE CONTEXT OF HOW MASSIVE WE ARE TALKING, EACH DATA CENTER AS MANY AS THREE NUCLEAR PLANTS. >> AS MANY AS FIVE NUCLEAR PLANTS. WHERE DOES THAT POWER COME FROM, NOBODY CAN REALLY SAY BUT IT SPEAKS TO THE TREMENDOUS SCOPE OF AMBITION THAT SAM ALTMAN OPENAI HAS. WE REPORTED FOR A LOT OF THIS
YEAR HE'S BEEN TRYING TO BUILD UP A COALITION TO SUPPORT INFRASTRUCTURE DEVELOPMENT IN THE U.S. AND GLOBALLY. THIS IS REALLY THE CLEAREST AND MOST SPECIFIC INDICATION WE HAVE OF WHAT HE'S THINKING IN THE U.S. AND ABROAD. >> IT'S BASED ON A DOCUMENT BLOOMBERG REVIEW THINK BACK TO FEBRUARY WHEN WE REPORTED AND I THINK YOU EDITED THE STORY ABOUT THIS IDEA SAM ALTMAN ALSO WENT TO THE U.S. GOVERNMENT AND SAID I KIND OF WANT SOME GREEN LIGHT TO TAKE MONEY FROM OTHER INVESTORS BECAUSE WE KNOW THIS IS GOOD TO BE REALLY CAPITAL-INTENSIVE. WHAT WE KNOW ABOUT THAT SIDE OF THE STORY.
>> ONE IS IF THEY GO OVERSEAS WITH INVESTORS THAT PUTS THE WHOLE SET OF COMPLICATIONS BUT THE DOCUMENT WE'VE SEEN SUGGEST IN THE U.S. THEY ARE THINKING ABOUT ISSUES AROUND PERMITTING AND STREAMLINING CONSTRUCTION AND APPROVAL AND GETTING THESE DATA CENTERS ON THE GRID AND ULTIMATELY TRYING TO GET ALL THE STAKEHOLDERS FROM GRID OPERATORS TO DATA CENTER OPERATORS TO AGREE ON HOW TO BUILD THIS STUFF AND WHAT THEY WANT TO SEE FROM THE U.S. IS MORE FAVORABLE POLICIES. I WILL SAY SOME OF THAT SEEMS CLEAR IN WHAT THE WHITE HOUSE HAS SAID AFTER MEETING THIS MONTH WITH SAM ALTMAN AND OTHER AI EXECUTIVES THEY ARE PUTTING TOGETHER TASKFORCES AND ENGAGEMENT TEAMS AND OTHERS TO HELP BEGIN THINKING ABOUT THE STREAMLINING PROCESS. THAT'S VERY MUCH A QUESTION. >> SILICON VALLEY IS MOVING.
BUT THAT IS BUT ONE NUCLEAR PLANT THAT CAN BE RE-FIRED BACK UP. HOW MANY YEARS IS THIS ULTIMATELY GOING TO TAKE? SETH: THAT'S THE QUESTION EVERYONE HAS. ALTMAN HIMSELF IS INVESTING IN NUCLEAR FISSION AND OTHER BREAKTHROUGH TECHNOLOGIES THAT MAY NEVER ACTUALLY COME TO FRUITION BUT IT FEELS LIKE IF HE CAN GET IT THROUGH THAT HOW ELSE WILL YOU GET THIS MUCH POWER. >> SAM ALTMAN HAS TALKED ABOUT HOW EVERY OTHER DAY HE MEETS WITH A GOVERNMENT OFFICIAL. THIS IS THE MOST IMPORTANT AI COMPANY IN THE WORLD PROBABLY. WE HAVE A SENSE OF THE PEOPLE IN THE WHITE HOUSE OR FEDERAL AGENCIES THAT ARE RESPONSIBLE FOR INTERACTING WITH THEM.
>> I THINK FRONT AND CENTER FOR ALTMAN IS PROBABLY GINA RAIMONDO. I THINK THAT'S HIS KEY POINT PERSON WE HEARD. BUT I THINK HE'S PROBABLY DEALING WITH PEOPLE ACROSS GOVERNMENT AND I'M SURE HE'S THINKING ABOUT WHAT WOULD IT MEAN IF THERE'S A CHANGE IN ADMINISTRATION GOING FORWARD TO KIND OF REALLY SMOOTH OVER THE PATH TOWARDS THESE INVESTMENTS.
>> BLOOMBERG'S SETH WHO LEADS THE AI COVERAGE. CHINA IS COMPLICATING THE ELECTRIC VEHICLE OUTLOOK FOR WALL STREET WITH MORGAN STANLEY CHANGING ITS TUNE ON THE AUTO SECTOR AT LARGE. ANALYST ANTICIPATING A STELLAR QUARTER FOR TESLA AND LATER TODAY I'LL BE HEADING TO META CONNECT WHERE THE COMPANY IS LIKELY TO SHOW OFF SOME NEW VR AND MIXED REALITY TECHNOLOGY. I WILL SIT DOWN WITH THEIR CTO FOR AN EXCLUSIVE INTERVIEW WITH META-SHARES CURRENTLY TRADING VERY NEAR TO A FRESH RECORD HIGH. IT IS A LOT MORE TO COME THIS IS BLOOMBERG TECHNOLOGY. >> WALL STREET'S CHANGING ITS TUNE ON U.S.
ELECTRIC CAR MAKERS. MORGAN STANLEY ANALYST ADAM JONAS CUTTING HIS OVERALL AUTO OUTLOOK AMID COMPETITION IN CHINA AND CONCERNS AROUND THE U.S. CONSUMER. HE CUT RIVIAN'S EQUAL WEIGHT TODAY AND DOWNGRADED GM AND FORD. ON THE OTHERS THERE'S TESLA, AT LEAST FOR ANALYSTS HAVE BOOSTED ESTIMATES FOR TESLA'S THIRD-QUARTER DELIVERY NUMBERS WHICH ARE DUE NEXT WEEK ALL POINT TO SIGNS THAT SALES ARE STARTING TO PICK UP FOR TESLA PARTICULARLY IN CHINA. CAROLINE: WE WANT TO DISCUSS CHINA, EV'S
AND WHAT REGULATION IS HAPPENING IN EUROPE WITH TRANSPORT ENVIRONMENT SENIOR DIRECTOR JULIA LISKA NOVA. WE HEAR OF SOME OF THE ANALYST REACTIONS TO TESLA AND RIVIAN, TWO EV'S MORE GENERALLY. WE ARE ALSO SEEN GOVERNMENTS REACT TO THE WORRYING FROM THEIR SIDE BUT EV'S ARE VERY CHEAP WHEN THEY'RE COMING FROM CHINA. JUST SET THE CONTEXT OF WHERE WE STAND RIGHT NOW. >> I THINK THAT'S A REALLY BIG DEBATE AND RIGHT NOW IN BRUSSELS WHERE EVERY MINUTE OF EVERY DAY THIS IS WHAT POLITICIANS AND EVERYONE IS DISCUSSING. I THINK THE BOTTOM LINE IS CHINA HAD A LONG-TERM VISION AS WELL AS SUBSIDIES FOR OVER A DECADE NOW TO BUILD THEIR EXPERTISE NOT JUST IN ELECTRIC VEHICLES AT THE ENTIRE SUPPLY CHAIN. THEY HAD POLICY ON DEMAND-SIDE
AND SUPPLY-SIDE AND ON THE ENTIRE ECOSYSTEM SO TODAY THEY SIMPLY HAVE EXCELLENT HIGH QUALITY TECHNOLOGY, DOMINANCE OVER THE SUPPLIES CHAIN AS WELL AS PROBLEMS DOMESTICALLY LEADING TO OVERSUPPLY THAT THEY WANT TO SELL ACROSS THE WORLD. I WOULD PUT ONE FACT FOR YOU WHICH REALLY UNDERSCORES WHY THE CURRENT EV TARIFF NEGOTIATIONS IN EUROPE ARE SO IMPORTANT. 60% OF ALMOST CHINESE EV GLOBAL EXPORTS ARE ACTUALLY GOING TODAY TO EUROPE WHILE THE U.S. MARKET IS CLOSED TO THEM. THAT'S WHY THE CURRENT NEGOTIATIONS IN BRUSSELS OF THE HIGHER TARIFFS ARE SO TENSE AND REALLY STILL JUST HEATING UP RIGHT NOW. CAROLINE: THOSE TARIFFS COULD BE AS HIGH AS ABOUT 35% ON ADDITION TO THE 10% TARIFFS BUT ALREADY EXIST. THE EU AND CHINA WILL CONTINUE NEGOTIATIONS EVEN AS THE EU LOOKS TO PERHAPS PASS THROUGH THESE TARIFFS. AS SOON AS THE BEGINNING OF
NEXT MONTH. JULIA, HOW LIKELY DO YOU THINK IT IS THAT THESE TARIFFS WILL GO INTO PLACE AND NEED TO GO INTO PLACE. >> FIRST OF ALL WHETHER OR NOT THEY WILL GO INTO PLACE.
AS WE SEE THE SITUATION TODAY IT STILL SEEMS LIKELY THAT THERE IS NO BLOCKING MAJORITY OF MEMBER STATES AGAINST TARIFFS. SO TO TAKE PLACE IN THE END OF OCTOBER AND AS OF TODAY IT SEEMS THE ADDITIONAL TARIFFS WON'T GO THROUGH. HOWEVER WHAT WE DO UNDERSTAND IS THERE MIGHT BE INTO THE AGREEMENT THAT THE EUROPEAN COMMISSION AND THE CHINESE OFFICIALS CAN CONTINUE NEGOTIATING AND IF THEY REACH SOME SORT OF DEAL EITHER ON PRICES OR VOLUMES OF IMPORTS THIS MIGHT BE BEST. NUMBER TWO IS ALSO IMPORTANT. WE NEED THOSE TARIFFS AND WHEN WE TALK ABOUT CHART -- TARIFFS ON CHINESE EV'S IN EUROPE WE ALWAYS FORGET THE OTHER BIG PART OF THE PICTURE. WHAT IS MISSING IS THE AFFORDABLE SUPPLY OF ELECTRIC VEHICLES IN EUROPE BY EUROPEAN MANUFACTURERS. SOME OF THIS IS PLANNED SO
ABOUT 12 MODELS CHEAPER MODELS ARE PLANNED FOR NEXT YEAR THAT COINCIDE WITH THE NEXT SET OF EUROPEAN CLEAN CAR REGULATIONS. SO AS PART OF THE PACKAGE EV TARIFFS MAKE SENSE IF YOU HAVE STANDARDS AND THEN HIGHER TARIFFS. CAROLINE: LET ME JUMP -- ED: LET ME JUMP IN, TARIFFS IS ONE FACTOR. EARLIER TODAY BLOOMBERG SPOKE TO THE ACA DIRECTOR GENERAL WHO BASICALLY SAID THERE'S A PERFECT STORM FOR THE EV INDUSTRY IN EUROPE. JUST LISTEN TO WHAT WAS SAID.
>> WE SOMETIMES CALLED IL MOST PERFECT STORM HAPPENING TOGETHER AND NEED TO DEAL WITH THAT. ALSO WITH THE GREEN TRANSITION MOVING FROM PAPER TO REALITY REALITY STARTS TO HIT AND WE SEE HOW DIFFICULT IT IS TO NOT JUST HAVE MANDATES, REGULATORY MANDATES AND MODELS ON THE MARKETS MANUFACTURERS MAKING CARS BUT ALSO LEADING THE MARKET AND THAT'S WHAT WE ARE MISSING AT THE MOMENT IN EUROPE. >> THAT'S THE CHIEF OF EUROPE'S BIGGEST AUTOS LOBBY GROUP SAYING THINGS ARE VERY HARD RIGHT NOW FOR OUR INDUSTRY.
A PERFECT STORM. DO YOU SEE A PERFECT STORM? >> I DO AGREE THINGS ARE REALLY HARD. WHAT WE MISS IN EUROPE IS A COMPREHENSIVE GREEN AUTOMOTIVE STRATEGY THAT WILL HAVE THE VISION INDUSTRIAL POLICY TO SUPPORT IT BE IT INVESTMENT SUPPORT OR TRADE POLICY THAT IS NOT HAPPENING AND THAT'S WHAT WE ARE DISCUSSING FOLLOWING THE FAMOUS DRAGHI REPORT SO THAT SENIOR REPORTERS IN EUROPE COMPETITIVENESS. THAT I HAVE TO SAY ALL OF THIS
DIDN'T JUST ARRIVE AS A COMPLETE SURPRISE. CARMAKERS KNEW ABOUT THE EV TARGETS FOR YEARS AND WE ALWAYS EXPECTED THE MARKET TO STAGNATE IN 2023 AND 2024 BENT TO PICK UP IN 2025. >> WHAT IS THE CONSUMER'S ATTITUDE ELECTRIC VEHICLES IN EUROPE.
>> WHEN THE VEHICLES ARE BOUGHT AT RIGHT PRICES CONSUMERS ARE FLOCKING TO BUY THEM. THE MODEL WITH SMALLER AFFORDABLE EV'S WERE MADE AVAILABLE WAS OVERSUBSCRIBED SO THE DEMAND IS THERE BUT IT'S THERE AT THE RIGHTLY PRICED VEHICLES. WE ARE MISSING AFFORDABLE MODELS , THEIR PLAN FOR NEXT YEAR SO WE JUST NEED TO GET THOSE MODELS, BRING THEM TO CONSUMERS AND ACTUALLY SEE HOW THE MARKET REACTS PREYED IT IS TOO EARLY TO JUDGE THEM. TODAY IN 2024 WHEN THOSE MODELS ARE NOT THERE. >> TRANSPORT ENVIRONMENT SENIOR DIRECTOR POLICY, THANK YOU VERY MUCH. COMING UP ON BLOOMBERG
TECHNOLOGY WE ARE JOINED BY THE ACCELERANT CEO TO DISCUSS THE IMPACT OF AI ON THE SPECIALTY INSURANCE MARKET. THAT CONVERSATION IS NEXT AND THIS IS BLOOMBERG. ♪ >> THE GLOBAL MARKET FOR AI RELATED PRODUCTS WILL HIT AS MUCH AS $990 BILLION IN 20 ACCORDING TO BAIN'S LATEST GLOBAL TECHNOLOGY REPORT SAYING THE MARKET WILL GROW 40 TO 55% ANNUALLY FROM 85 BILLION LAST YEAR THE CONSULTING FIRM SAYS GROWTH WILL BE FILLED BY BIGGER AI SYSTEMS AND LARGER DATA CENTERS TO TRAIN AND RUN THEM. DRIVEN BY COMPANIES USING THE TECHNOLOGY TO BOOST EFFICIENCY.
>> HOW ARE THEY USING THE TECHNOLOGY WE WILL DISCUSS THAT WITH TODAY'S AI IN ACTION. SPEAKING WITH THE GLOBAL RISK EXCHANGE PLATFORM FOR SPECIALTY INSURANCE MARKET. IT'S BOOKED ON THE $400 MILLION OF REVENUE. LET'S TALK ABOUT THAT GROWTH. THE CEO IS WITH US.
WHAT EXACTLY ARE YOU DOING? WE ARE TRYING TO SEEK OUT INEFFICIENCIES IN THE INSURANCE MARKET. >> SO ACCELERANT IS TRYING TO RE-PLATFORM THAT SPECIALTY INSURANCE MARKET FOR THE BENEFIT OF EVERYONE. LET ME UNPACK THAT A LITTLE BIT. INSIDE THAT GIGANTIC INSURANCE INDUSTRY THERE ARE MILLIONS OF POLICIES THAT AREN'T QUITE STANDARD. SOMETHING MAKES THEM UNIQUE. THAT'S THE SPECIALTY INSURANCE MARKET.
AND WHAT WE DO IS UNLIKE THE TRADITIONAL INSURANCE INDUSTRY TECH WHICH IS SO INFLEXIBLE THAT IT DOES NOT MAKE SENSE TO SORT OF ADJUST AND TO MODERNIZE FOR THE SPECIALTY PRODUCTS WE ARE NIMBLE ENOUGH THAT WITH DATA AND TECHNOLOGY WE PROVIDE THE INFRASTRUCTURE THAT RE-PLATFORMS THE SPECIALTY INSURANCE ONTO A MORE MODERN OFFICIAL PLATFORM. >> THE PROOF IS IN THE NUMBERS, IT ALWAYS IS SO HOW DOES THE ENTHUSIASM FOR THE TECHNOLOGY AND USE OF THE TECHNOLOGY TRANSLATE INTO SALES FOR YOU, THE PROOF PEOPLE ARE WILLING TO PAY FOR IT. JEFF: YOU MENTIONED THE REVENUE 444 MILLION IN 12 MONTHS AND THAT SOAP OVER 60% SO YOU'RE CERTAINLY PLEASED WITH THE GROWTH, THE GROWTH OF THE BUSINESS PLATFORM IS BEEN VERY STRONG AS BOTH SPECIALTY UNDERWRITERS AND THE RISK CAPITAL PARTNERS ADOPT THE PLATFORM. AND FIND IT INCREDIBLY HELPFUL. I THINK THAT WOULD BE THE PROOF.
CAROLINE: HOW IS AI IN MACHINE LEARNING THE KEY TO THIS THOUGH. >> IT ALL STARTS WITH THE DATA I THINK AND WEEK BY WEEK OVER THE PAST SIX YEARS THE RISK EXCHANGE HAS BEEN SQUIRRELING AWAY DATA, A PROPRIETARY DATA ON POLICIES AND CLAIMS AND EXPOSURE AND OVER THE COURSE OF SIX YEARS THAT'S TURNED INTO TENS OF MILLIONS OF ROWS OF DATA WITH OVER 11,000 UNIQUE ATTRIBUTES. AND WHEN YOU POINT THE STATE-OF-THE-ART AND THAT'S ALWAYS CHANGING BUT AS YOU POINT THE STATE-OF-THE-ART MODELS WHETHER THE MACHINE LEARNING OR ARTIFICIAL INTELLIGENCE MODELS AT THAT DATA REALLY EXCITING THINGS START TO HAPPEN. YOU KNOW WHERE TO GROW THE PORTFOLIO INSURANCE POLICIES, YOU KNOW WHERE TO SHRINK THE PORTFOLIO INSURANCE POLICIES. YOU ADJUST THE CLAIMS MUCH MORE EFFECTIVELY, IN TOTAL WE FIGURE 20% WE ARE PICKING UP 20% APPROVAL IN THE GROSS MARGIN ON THE BUSINESS THE TRANSFERS TO THE RISK EXCHANGE BECAUSE OF THE MACHINE LEARNING OF AI. THAT'S SIGNIFICANT. >> EVERYONE GET SO CAUGHT UP WITH GENERATIVE AI BUT YOU ARE NOT NEEDING THAT. WILL THAT BE INTERWOVEN IN SOME
WAY? HOW WILL YOU SEE MORE MODEL PROGRESSED? >> THE GENERATIVE PIECE IF YOU USE THAT AS THE CLASSIC DEFINITION I THINK THAT USUALLY HAS ITS BEST USE IN IMPROVING OTHER PEOPLE'S CUSTOMER EXPERIENCE. I'M NOT SURE IT WILL BE ABOUT INSIGHTS FOR THE PORTFOLIO. I THINK IT WILL BE INSTEAD OF RUNNING A QUERY ABOUT HOW YOUR PORTFOLIO IS PERFORMING YOU JUST GET TO ASK IT IN NATURAL LANGUAGE AND THAT SHOULD SPEED THINGS UP. AND BE MORE ENJOYABLE FOR THESE. >> WE TALKED ABOUT THE AI SIDE OF THE STORY I'M CURIOUS ABOUT THE SPECIALTY INSURANCE SIDE OF THIS STORY AND WHAT DOES THAT MEAN, IN CALIFORNIA WERE HAVING ISSUES LIKE WILDFIRE OR MOB THEFT IN THE CITY OF SAN FRANCISCO, IS THAT WHAT WE ARE TALKING ABOUT HERE? JEFF: AMONG OTHER THINGS. SPECIALTY INSURANCE MEANS THERE IS A RISK FOR INSURED THAT IN SOME WAY DOES NOT FIT INTO A STANDARD CATEGORY OR A STANDARD PRODUCT OR STANDARD RATES DOES NOT FIT. MAYBE THAT'S WILDFIRE EXPOSURE.
THAT'S A GREAT EXAMPLE THERE ARE MANY ARE YOURS. MANY OF THE BUSINESS THAT ARE TOO NEW OR SUFFERED A LOSS IN THE PAST THREE TO FIVE YEARS. THERE ARE MANY THINGS WHICH CAN TAKE AND PUT INTO THE SPECIALTY MARKETPLACE, THE UNDERLYING NOTION OF THE SPECIALTY MARKETPLACE IS YOU NEED INCREDIBLY TAILORED DATA SETS AND THERE AREN'T MILLIONS AND MILLIONS OF DATA POINTS ABOUT EACH PRODUCT, THERE ARE MANY FEWER SO YOU HAVE TO WORK HARDER TO MAKE THE DATA GIVE UP THOSE INSIGHTS. >> JUST VERY QUICK OUR NORTH INNINGS NOW INSURABLE BECAUSE OF THIS.
>> MORE IMPORTANTLY, PRODUCTS ARE BECOMING TAILORED TO THE SPECIFIC NEEDS OF VARIOUS INSURERS SO IT'S MUCH LESS OF A ONE-SIZE-FITS-ALL MARKET. >> ACCELERANT CEO JEFF, GREAT TO HAVE YOU ON THE SHOW. MORE NEWS IT'S TIME FOR TALKING TECH AND FIRST UP, REDDIT IS HIRING MIKE ROMOFF TO TAKE ON THE ROLE OF CHIEF REVENUE OFFICER IS THE SOCIAL MEDIA COMPANY LOOKS TO PUSH FOR A WIDER RANGE OF CLIENTS. REDDIT HAS BEEN INVESTING
HEAVILY IN ITS AD TECH AS IT LOOKS TO COMPETE WITH THE LIKES OF ALPHABET AND MEDA. JAPANESE MEMORY CHIPMAKER IS DELAYING ITS IPO AMID A SLIDE IN SEMICONDUCTOR STOCKS. ACCORDING TO SOURCES THE COMPANY IS NOW TARGETING AN IPO IN NOVEMBER OR DECEMBER INSTEAD OF OCTOBER IT COULD RAISE ABOUT $500 MILLION EXPANDING THE ROBOTAXI FLEET, THE RIDESHARING COMPANY WILL TEAM UP WITH WE RIDE TO OFFER ROBOTAXIS IN THE UNITED ARAB EMIRATES. UBER SAYS ITS USERS IN ABU
DHABI WILL BE ABLE TO BOOK RIDES LATER THIS YEAR. COMING UP WE SPEAK WITH FRANCE'S SPECIAL ENVOY FOR AI AS PRESIDENT BIDEN PUSHES FOR GLOBAL AI STANDARDS PRE-THIS IS A CONVERSATION THAT YOU DO NOT WANT TO MISS. WE SHOULD CHECK IN ON THE MARKETS. IT'S BEEN A NEWS HEAVY DAY. THIS IS WHAT IT LOOKS LIKE.
NASDAQ 100 VERY TECH HEAVY INDEX. SOME OF THE MEGA CAPS TRADING WITH HIGHER TO TENS OF 1%. THE MARKET LOOKING FOR DIRECTION THERE IS A BIG EVENT HAPPENING WITH ONE MEGA CAP WHICH WILL BE PAYING CLOSE ATTENTION TO. FROM NEW YORK CITY AND OVER HERE IN SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK. WE LOOK TO THE NASDAQ 100 A MINUTE AGO.
STILL UP ABOUT 2/10 OF A PERCENT COMING OFF OUR HIGHS. WE HAVE THE HIGHEST SINCE JULY SO THERE HAS BEEN SOME GOOD MOOD MUSIC INTO THIS BENCHMARK. FRONT POINT PERSPECTIVE WE ARE STILL SEEING NVIDIA ON TOP BUT I WANT TO SHINE A LIGHT ON WHAT WE SAW YESTERDAY. THE FACT THAT THEY ARE ADDING STIMULUS, THE GOLDEN DRAGON INDEX, PULLS BACK A LITTLE BIT FROM WHAT HAD BEEN A MONUMENTAL MOVE, THE BIGGEST MOVE HIGHER SINCE 2022. NOT YET ERASING THAT BIG MOVE AND YESTERDAY LOOKING AT MICRON. WE STILL HAVE A FEW TRICKLES OF EARNINGS.
MICRON COMING UP AFTER THE BELL. COULD WE SEE THAT 90% INCREASE IN REVENUE MANAGING TO PULL THROUGH AND WE ARE OFF THE FORECAST. ED: A SUPER WELL READ STORY ON BLOOMBERG. BANKING GROUP ING IS STARTING TO USE AI TO PRICE CURRENCIES REPLACING JOBS TRADITIONALLY PERFORMED BY TRADERS AND ACCORDING TO ITS GLOBAL HEAD OF ELECTRONIC TRADING IT PERFORMED BEYOND THEIR EXPECTATIONS. ALICE JOINS US NOW AND HAS THE STORY. THE DETAILS INTERESTING BECAUSE THE AI OUTPERFORMS IT REPLACES JOBS BY ARE STILL AN ELEMENT OF HUMAN OVERSIGHT.
WHAT DID YOU LEARN ABOUT WHAT THEY ARE ACTUALLY DOING. >> JUST -- ADJUSTING CURRENCY PRICES WERE VOLATILITY WAS A TIME-CONSUMING TASK SO THAT'S WHY THEY BUILT THIS AI MODEL TO MAKE THINGS EASIER FOR THEM AND IT'S ACTUALLY PERFORMED A LOT BETTER THAN THEY WERE EXPECTING SO THEY WERE LOOKING AT GETTING ON THE DESK TO PERFORM THIS ROLE. NOW THEY WILL USE THE MODEL INSTEAD.
IT USES REINFORCEMENT LEARNING SO IT PRETTY MUCH MIMICS HOW A HUMAN WOULD USE A TRIAL AND ERROR PROCESS SO WE WILL GET BETTER OVER TIME. THEY'RE NOW LOOKING AT DEPLOYING THIS TECHNOLOGY ACROSS OTHER ASSET CLASSES. >> THIS IS A $7.5 TRILLION A DAY MARKET. HOW ARE WE SEEING OTHER BANKS LEAP IN ON THIS. BEING ABLE TO REDUCE COSTS, REDUCE PEOPLE, MUSIC TO THE MANAGEMENT YEARS AT LEAST. >> IT REALLY DEPENDS ON THE APPROVAL PROCESS WITHIN A BANK AS TO HOW READILY THEY ARE GOING TO DEPLOY THESE TECHNOLOGIES AND THAT WILL VARY FROM FIRM TO FIRM. SO AT AN INTEREST OR CONFERENCE
I WAS AT RECENTLY THERE WAS QUITE A LOT OF ANXIETY ABOUT WHO WILL ULTIMATELY BE RESPONSIBLE FOR THIS AI TECHNOLOGY. IS IT THE PERSON WHO BUILT THE MODEL, IS IT COMPLIANCE, IS IT THE TRADING TEAM SO SORTING THAT OUT WITHIN THE FIRM IS OFTEN SEEN AS THE FIRST STEP OF WHAT YOU CAN EMBRACE THE TECHNOLOGY. THEY SAID IT WAS A RELATIVELY QUICK PROCESS THEY BUILT THE MODEL. AND SINCE THEY GOT SUCH STRICT GOVERNANCE PROCESS AROUND IT. THAT'S HOW THEY GOT THE APPROVAL.
THEY ASSURED ME THEY ARE STILL GOOD TO BE A BIG RED BUTTON THEY COMPRESS IF ANYTHING WAS TO GO WRONG AND THAT ELEMENT IF HUMAN OVERSIGHT. >> ALICE ATKINS IN LONDON. ACT IN THE U.S. AI REGULATION IS TOP OF MIND FOR BIG TECH EXECUTIVES. PRESIDENT AND CIO OF GOOGLE PARENT ALPHABET SPOKE TO BLOOMBERG'S ERIK SCHATZKER ABOUT HER HOPE TO SEE BIPARTISAN AI POLICIES EMERGING IN THE U.S.. SHE SPOKE AT THE BLOOMBERG GLOBAL BUSINESS FORUM YESTERDAY, LISTEN TO THIS.
>> RIGHT NOW IN THE SENATE THERE'S BIPARTISAN APPROACH AROUND IN AI FRAMEWORK THEIR SENDER SCHUMER AND OTHERS HAVE PROPOSED AND AGAIN IT LOOKS AT ALL ELEMENTS OF HOW DO WE INVEST TO BE COMPETITIVE, HOW DO WE PREVENT WORKING ON THE DOWNSIDE SO I WOULD HOPE IT'S CONTINUATION OF THIS AND IT CONTINUES TO BE BIPARTISAN BECAUSE IT'S SUCH A COALITION. >> IT'S NOT JUST CORPORATE LEADERS. IT'S KEY FOR WORLD LEADERS OF THE UNITED NATIONS GENERAL ASSEMBLY AS WELL. RESID AND BIDEN ISSUING A WARNING ON AI RISKS DURING HIS AI SPEECH INCLUDING FROM GLOBAL STANDARD, A BIDEN SAYING WE MUST MAKE CERTAIN THE AWESOME CAPABILITIES ARE USED TO UPLIFT AND EMPOWER EVERY DAY PEOPLE NOT TO GIVE DICTATORS MORE POWER FOR SHACKLES OF THE HUMAN SPIRIT.
FRANCE'S SPECIAL ENVOY FOR AI JOINS US NOW. YOU ARE TALKING WITH MACRON HIS SPECIAL ENVOY TO DISCUSS AI GOVERNANCE, REGULATION. WE HAVE A SUMMIT IN FEBRUARY WHERE YOUR WANT NOT JUST NICER HALVES BUT ACTIONS TO HAVE. IS IT GOVERNABLE FROM A ROLLED PERSPECTIVE. >> THAT'S A GREAT QUESTION AND THANKS FOR HAVING ME. WE ARE AT EARLY STAGES OF AI AND I THINK THIS NOW IS THE TIME WHERE WE NEED TO PUT OUR EFFORTS INTO THIS INTO LOOKING AT HOW WE WANT TO GOVERN IT, HOW CONCRETE ACTION CAN BE TAKEN AND SCALED AND CATALYZED TO BE DEVELOPED IN THE INTEREST OF PEOPLE. I VERY MUCH AGREE WITH A LOT OF
WHAT HAS BEEN SAID RECENTLY. WE NEED TO REDOUBLE OUR EFFORTS AND GET HEADS OF STATE AND ALSO CIVIL SOCIETIES, STARTUPS, LARGE COMPANIES, RESEARCH IS VERY IMPORTANTLY. CAROLINE: WHAT'S THE NUMBER ONE CONCERN? ANNE: THERE'S BEEN A LOT OF DISCUSSION ON PREVIOUS SUMMITS READ WE WANT TO TAKE A BROADER APPROACH BECAUSE WE DO THINK THOSE ARE IMPORTANT TOPICS. WE ALSO THINK WE NEED TO DISCUSS THINGS LIKE THE FUTURE OF WORK, YOU HAD AN EXAMPLE ON THAT JUST BEFORE. INNOVATION AND CULTURE ARE VERY IMPORTANT TOPICS BUT MOST OF ALL IT IS WHAT CAN WE DO TO MAKE SURE WE PUT INTO PERSPECTIVE THE POTENTIAL HARMS AND -- HARMS OF MISUSE AND THE BENEFITS AND OPPORTUNITIES AND HELP STEER THINGS IN THE DIRECTION OF THIS VERY CONCRETE OPPORTUNITY AND WHEN I SAY VERY CONCRETE YOU CAN CAI IS GOING TO BENEFIT FOR EXAMPLE.
SOME VERY SPECIFIC CASES OF ORIENTATION SPEEDING UP OR SPEEDING UP DRUG DEVELOPMENT. BUT NOT EVERYTHING. >> GOOD MORNING. IN FRANCE, THE PRIVATE SECTOR LEADER IN AI HOW CLOSELY ARE YOU WORKING IN YOUR EFFORTS. >> FIRST OF ALL THIS IS A GLOBAL SUMMIT WE ARE PREPARING WE ARE WORKING WITH ALL AI COMPANIES AND STARTUPS, BUT ALSO THE ONES IN THE U.S. WOULD YOU KNOW SUPER WELL. THE ONES LIKE AI IN JAPAN OR IN GERMANY. WE WORK CLOSELY WITH THEM BUT I AM VERY PLEASED WE HAVE OTHER GREAT STARTUPS IN FRANCE LIKE POOLSIDE OR AGE JUST TO NAME A FEW.
>> I WOULD LIKE TO KNOW ABOUT MACRON'S ATTITUDE TOWARDS LEADERSHIP, HOW IMPORTANT IS IT FOR A GLOBAL LEADER, WESTERN WORLD LEADER TO HAVE A FIRM GRASP ON ARTIFICIAL INTELLIGENCE , THE TECHNICALITIES OF IT, THE IMPLICATIONS OF IT AND HOW DOES HE FEEL ABOUT IT. >> IT'S A SUBJECT HE'S DEEPLY INTERESTED IN FOR YEARS, FRANCE HAD A FIRST REPORT AND SET OF RECOMMENDATIONS ON AI IN 2018 LED BY THE FIELD MEDALIST. I JUST RECENTLY COCHAIRED WITH THE ECONOMIST WE DELIVERED OUR RECOMMENDATIONS IN MARCH. THIS IS REALLY SOMETHING THE FRENCH PRESIDENT MACRON IS VERY INTERESTED IN IN FOLLOWING ON QUICKLY AND STRONGLY AND REGULARLY. HE IS SPEAKING AT A NUMBER OF EVENTS HE'S LISTENING TO PEOPLE AS MUCH AS HE CAN. HE STRONGLY BELIEVES THIS IS IMPORTANT. CAROLINE:
IT'S ALL VERY WELL FOR WESTERN LEADER, BUT WEBINAR -- YOU HAD NATIONS BEEN TRYING TO SAY. WE LOOK TOWARDS YOUR SUMMIT WHICH YET AGAIN INVOLVES A LOT OF PEOPLE WHO HAVE BEEN IN THE U.K. IS A LOT OF G-7 COUNTRIES. WHAT ABOUT INVOLVING AFRICA, OF THE GLOBAL SOUTH. >> WE HAVE A BIT MORE TIME LUCKILY TO PREPARE OUR SUMMIT.
THE U.K. AND SOUTH KOREA HAVE TWO REALLY DO THINGS QUITE QUICKLY. BECAUSE WE HAVE MORE TIME WE REALLY WANT TO BE AS INCLUSIVE AS POSSIBLE. WE'VE ALREADY SENT SAVE THE DATA TO MORE THAN 60 LEADERS, WE ARE REALLY OPENING THIS UP TO AS MANY COUNTRIES AS WE WANT TO AS WELL AS STARTUPS CIVIL SOCIETY AND ORGANIZATIONS. WITH MORE THAN 250 OF THEM FROM AROUND THE WORLD. RESEARCHERS HAS THIS AT HEART TO REALLY TAKE INTO ACCOUNT OF COUNTRIES AROUND THE GLOBE. IF AI IS ONLY BEING DEVELOPED
BY A FEW ACTORS IN A FEW COUNTRIES WE WILL HAVE FAILED AND WE REALLY NEED TO INVOLVE EVERYONE AND MAKE SURE WE STEER IT TOWARDS PEOPLE'S AND SOCIETY. ED: LOOKING FORWARD, WHAT ARE THE OBJECTIVES YOU ARE SETTING FOR YOURSELVES AS A RESULT OF THE SUMMIT. ANNE: WE ARE AT THE SAME TIME VERY AMBITIOUS AND HUMBLE AND PRAGMATIC. WE WANT TO USE THE TATES OF THE SUMMIT TO CATALYZE, TO SCALE AND TAKE SPECIFIC ACTIONS THAT ARE AS PROP -- PRAGMATIC AS POSSIBLE. WE WANT EXAMPLES OF SPECIFIC USE CASES AND VERSUS GENERAL DISCUSSIONS ON POTENTIAL. AND WE ALSO WANT TO HAVE CONCRETE ACTIONS ON STANDARDS AND INTEROPERABILITY, SPECIFIC INITIATIVES INVOLVING A NUMBER OF COUNTRIES AND PRIVATE ACTORS AND PUBLIC ACTORS. YOU'LL HAVE TO WAIT A LITTLE
BIT BUT I VERY MUCH HOPE WE CAN BE THERE AND HAVE THESE CONCRETE ACTIONS PRESENTED THERE. >> YOU MUST COME BACK ON BLOOMBERG TECHNOLOGY AND REVIEW THE RESULTS OF THAT. THANK YOU VERY MUCH. COMING UP, WIZ IN DISCUSSION TO SELL EXISTING SHARES AT A VERY HIGH VALUATION. THIS IS BLOOMBERG TECHNOLOGY. WILL SPEAK WITH THE META-CTO ANDREW BOSWORTH. THIS IS BLOOMBERG. ED: CYBERSECURITY STARTUP WIZ IN DISCUSSION TO SELL EXISTING SHARES AT A VALUATION AS HIGH AS $20 BILLION.
THAT'S ACCORDING TO SOURCES. KATIE BROKE THE STORY JOINS US NOW. THIS IS A TENDER OFFER. WHAT WE KNOW ABOUT THE TERMS AND THE NUMBERS INVOLVED. >> WE CAUGHT WIND OF IT EARLY SO IT STILL BEING SORTED OUT BUT IT SHOULD BE BETWEEN 15 AND 20 BILLION VALUATION WHICH WOULD BE A PREMIUM TO THE 12 BILLION THEY RAISE THAT EARLIER THIS YEAR BUT LESS THAN THE 23 BILLION THEY NOTORIOUSLY TURNED DOWN FROM GOOGLE. THAT'S WHAT'S BEING SORTED OUT NOW.
>> WHO'S INVOLVED, THE NAMES. KATIE: IT WOULD BE LED BY G SQUARED AND THEN ALSO LIGHTSPEED AND THRIVE MIGHT BE INVOLVED IN THIS AS WELL. AND POTENTIALLY SOME OF THE OTHER EXISTING INVESTORS.
ED: THIS IS PARTICULARLY CURIOUS BECAUSE AS WAS REPORTED GOOGLE TO TRY TO BUY WIZ AND THEY SAID NO THANK YOU WE ARE OK AS AN INDEPENDENT COMPANY BUT THE BROADER ENVIRONMENT HAS BEEN DIFFICULT I FEEL LIKE THE CADENCE OF DEALS MIGHT BE HEATING UP. THAT'S PART OF IT. >> STILL PLENTY OF CAPITAL AVAILABLE IN SILICON VALLEY TO INVEST IN THESE THINGS AND THEY NEED TO PUT THEIR MONEY TO WORK BECAUSE THE LAST FEW YEARS THERE HAVEN'T TO INVEST IN, ALL THE MONEY IS GOING POOR INTO BIG AI ROUNDS OR OTHER HOT COMPANIES DOING REALLY WELL AND SO WIZ IS ONE OF THOSE COMPANIES. >> IT FEELS THERE MUST BE PRESSURE FROM EARLY INVESTORS PER THIS IS LIQUIDITY EVENT.
>> A TENDER OFFER OR SECONDARY WERE EXISTING SHAREHOLDERS COULD SELL THEIR SHARES. WE THINK THERE MIGHT BE A PRIMARY ROUND THAT STILL BEING DECIDED IN SO THAT WOULD MEAN THE, BUT HE WOULD ALSO BE ABLE TO ADD MONEY TO ITS BALANCE SHEET. >> LET'S DISCUSS NETFLIX CO-CEO TED SARANDOS HAS BEEN CONSIDERING THE USE OF AI IN THE CREATIVE PROCESS. HE SAT DOWN WITH DAVID RUBENSTEIN TO DISCUSS THE COMPANY'S EVOLUTION AND FUTURE OF ENTERTAINMENT. >> I MOSTLY THINK OF AI AS A CREATORS TOOL NOT A CREATIVE TOOL. I THINK CREATORS WILL USE IT TO TELL BETTER STORIES. WERE NOT USING IT TO TELL
STORIES INSTEAD OF THEM. I DON'T THING WE WOULD BE EFFECTIVE AT IT OR AI WOULD BE EFFECTIVE AT DOING THAT. >> YOU CAN CATCH THE FULL INTERVIEW WITH TED SARANDOS ON PEER-TO-PEER CONVERSATIONS TONIGHT AT 9:00 P.M. EASTERN TIME ON BLOOMBERG TELEVISION. PLUS, IN TWO WEEKS TUNING FOR DAVID RUBENSTEIN'S FULL INTERVIEW WITH THE GOOGLE CEO. THAT'S ON WEDNESDAY, OCTOBER 9 ON BLOOMBERG TELEVISION. WE PLAYED A LITTLE BIT OF THAT
EARLIER ON. COMING UP, MICRON SET TO REPORT RESULTS AFTER THE BELL. THERE IS A BIG AI STORY WITHIN THAT NAME. THIS IS BLOOMBERG TECHNOLOGY. ♪ >> THIS IS THE PS5 PRO AND SIDENOTE PS5 PRO 30TH ANNIVERSARY EDITION RETRO BADGE. WE GOT HANDS-ON WITH THE CONSUL WHICH IS PLAYSTATION'S MOST EXPENSIVE EVER. 600 $99 IN THE U.S.. A SUPERCHARGED GPU WITH JUICED
UP RAM AND FASTER RENDERING. IT BOOSTS THE EXPERIENCE IN 4K AND OFFERS MORE GAMEPLAY AT 60 FRAMES PER SECOND. FOR THE TECH AFICIONADO THOSE ARE GREAT SELLING POINTS. SEE HOW IT COMPARES TO A STANDARDS PS5 WITH GAMES I ALREADY OWN. RAY TRACING OFFERS AMAZING REFLECTION IN SHADOWS AND CRISP DISTANCE SHOTS. THE LAST OF US PART TWO WAS MORE DETAILED YOU CAN SEE FURTHER INTO THE GAMES ENVIRONMENT.
I PLAYED ON 4K EVEN 8K TV'S AND YOU NEED THAT TO SEE ANY DIFFERENCE AT ALL. TO THE EXPERIENCED GAMER OR THE AVERAGE PERSON IT WOULD BE HARD TO TELL THE DIFFERENCE. NO DOUBT THESE ARE TOP HIGH FIDELITY VIVID GRAPHICS. BUT THEY KIND OF ALREADY WERE ON THE PS5 AND EVEN THE PS4 FOR SOME TITLES CRITICIZE THE CONSUL IS INTERESTING.
THERE'S MORE POWER PACKED IN BUT IT'S NOT MUCH DIFFERENCE TO THE PS5. GAMERS, COULD YOU TELL THE DIFFERENCE? ED: A LOT OF FUN. MICRON IS SET TO RELEASE EARNINGS AFTER THE CLOSING BELL, HERE WITH WHAT TO EXPECT ON A SERIOUS AND IMPORTANT TECHNOLOGY STORY, BLOOMBERG'S IAN KING. MICRON IS IMPORTANT. IT HAS A CENTRAL ROLE IN THE AI STORY WHEN WE THINK ABOUT DATA CENTERS, WE OBSESS OVER NVIDIA AND THE GPU PART BUT IT'S ALMOST PROPORTIONATE AND SO THAT'S WHAT WE WANT TO HEAR ABOUT. WHEN HIS NECK AND A TAKE OFF.
>> THAT'S WHAT WE WERE LOOKING AT THREE MONTHS AGO THE AI BENEFICIARY. WE WERE KIND OF DISAPPOINTED WE DIDN'T HAVE THOSE MASSIVE EXPLOSION AI EVEN THOUGH THE PRODUCTION WAS GOOD. THIS TIME AROUND IT'S HOW MUCH IS ENOUGH.
IT DEPENDS ON THE EXPECTATION LEVEL YOU BRING TOWARDS IT SO BEING ABLE TO TALK ABOUT AI SMARTPHONES AND PCS IT'S REALLY IMPORTANT AS WELL. >> JUST GIVING US THE CONTEXT OF SHEER SCALE OF GROWTH, BECAUSE WE ALMOST BECOME NUMB TO TRILLIONS OF DOLLARS AND ALMOST TRIPLE DIGIT GROWTH, WE ARE EXPECTING 91% INCREASE IN REVENUE HERE? THAT'S LARGELY DRIVEN BY THE AI FOCUS. IAN: THAT'S A PERFECT POINT WHICH ILLUSTRATES WHAT WE WERE TALKING ABOUT. IT SOUNDS AMAZING. I'D BE VERY HAPPY. BUT, IF THE OTHER WAY TO LOOK AT THIS PERHAPS THE GLOOM -- IS THINGS ARE DOWN A LOT. SO BEING UP 91% FROM WHERE WE WERE LAST YEAR SOUNDS FANTASTIC BUT MAYBE THAT'S BECAUSE WE WERE AT SUCH A LOW POINT SO IS 91% ENOUGH.
>> SOME BASICS FOR A BLOOMBERG TECHNOLOGY AUDIENCE. MICRON MAKES MEMORY CHIPS, LANCASHIRE IS A COUNTY IN ENGLAND NOTORIOUS FOR RAINING ALL THE TIME. WHICH ACCOUNTS FOR IAN'S ATTITUDE. THE IMPORTANT POINT IS MICRON HAS HISTORICALLY BEEN A LITTLE BIT OF A CRYSTAL BALL ABOUT THE WORLD OF ELECTRONICS AND TECHNOLOGY. IS IT STILL A CRYSTAL BALL IN
THAT RESPECT. IAN: IT IS BUT THERE ARE SOME DYNAMICS WITHIN THE MARKET THAT ARE ALSO DISTORTING THINGS AND TYPICALLY AS YOU SAY THIS WAS A COMPANY FOR COMMODITIES. IF THE PRICES ARE COMING DOWN, BAD FOR EVERYBODY.
THIS TIME IT'S MORE OF A TECHNOLOGY PLAY. WHO IS AHEAD IN A SPECIFIC TYPE OF PRODUCT THAT GOES INTO THESE AI SYSTEMS IN THE PAST SAMSON WAS A MASSIVE LEADER HERE. SAMSUNG ARGUABLY ISN'T IN THE LEAD THIS TIME. MICRON HAS THE TECHNOLOGY PLAY AND MAYBE THE VALUE PLAY. ED: IN HOW MUCH -- CAROLINE: HOW MUCH WE WANT TO HEAR ABOUT THEIR OWN INVESTMENT USE OF MONEY. THE THING ABOUT MICRON FABRICATING MANUFACTURING PLACES HERE IN THE UNITED STATES WILL THERE BE QUESTIONS ON THAT? >> 100 EVERYONE'S HEAD THERE AWARD ANNOUNCED FROM THE BIDEN ADMINISTRATION. NO ONE'S ACTUALLY RECEIVED THE
CHECK YET. THIS IS A BIG THING, HOW HARD DO YOU COMMIT TO NEW PLANS, HOW HARD DO YOU COMMIT TO FILLING OUT NEW PLANS SO THAT WILL DEFINITELY CROP UP TODAY. >> IAN KING WE THANK YOU.
ED, YOU'RE ABOUT TO HEAD OUT TO MEDIC CONNECT AND IT'S AN IMPORTANT INTERVIEW. >> WE WILL SPEAK TO ANDREW BOSWORTH AND ALL THE THINGS YOU WOULD EXPECT THEM TO TALK ABOUT WILL HAPPEN. PROGRESS IN MODEL A -- AND MIXED REALITY HEADSETS. I'LL SAY ONE THING REAL QUICK. TUNE IN LATER BECAUSE SOMETIMES I THINK WE FORGET THESE ARE TECHNOLOGY COMPANIES AND THEY ARE TRYING TO PUSH THE LIMITS OF HARDWARE AND SOFTWARE AND THAT'S WHERE I FOCUS TODAY.
>> WE FOCUSED ALSO ON A SHAREPRICE PRICE THAT IS NEAR A RECORD HIGH. META HAS BECOME THE AI PLAY FOR MANY. ED: IT'S SO WEIRD BECAUSE SIX YEARS AGO THIS WAS A SOCIAL MEDIA COMPANY THEN IT WAS AN AI COMPANY THAT EVERYONE WAS MAD ABOUT THEIR SPENDING AND NOW YOU LOOK AT THE SHARE PRICE IN THE CHART ON YOUR SCREEN THEY ARE BEING REWARDED FOR THIS COMMITMENT TO IT. I GUESS THE QUESTION WITHOUT GIVING IT AWAY IS WHAT IS META NOW? IS IT ALL OF THOSE THINGS OR HAS IT TAKEN A MORE NARROW FOCUS. CAROLINE: WE WAIT FOR THAT QUESTION TO BE POSED LATER. THAT DOES IT FOR BLOOMBERG TECHNOLOGY. ED:
I WILL SPEAK TO ANDREW BOSWORTH, THE META-CTO LATER TODAY. TUNE IN FOR :00 P.M. NEW YORK TIME. A CRACKING SHOW TODAY. CHECK OUT THE RECAP ON THE PODCAST, YOU KNOW WHERE TO FIND IT. FOR THE TEAM IN NEW YORK AND
SAN FRANCISCO THANK YOU.
2024-09-27 06:06
