>> FROM THE HEART OF HER MONEY, INNOVATION, AND POWER COMBINED FROM SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE. ED: I AM ED LUDLOW IN SAN FRANCISCO. CAROLINE CALLING SHOWING SIGNS OF MOMENTUM IN COST-CUTTING. ED: ELON MUSK SAYS THAT THE ADVERTISER BOYCOTT ON X MAY KILL THE PLATFORM.
THE ROLLOUT OF THE CYBER TRUCK. CAROLINE: ONE YEAR SINCE THE PUBLIC ROLLOUT OF CHATGPT BRINGING AI INTO THE SPOTLIGHT AND SPARKING A WAVE OF INVESTMENT IN HIRING. WE WILL DIG INTO WHAT THAT ONE YEAR ANNIVERSARY MEANS. THE MARKETS, COMING TO THE END OF THE MONTH, WHAT A MONTH IT'S BEEN. IN THE SHORT TERM WE GIVE OFF SOME OF THOSE PROFITS.
OFTEN .9% ON THE NASDAQ. PCE, THE INFLATIONARY INDICATOR COMING IN WHERE THE MARKET ANTICIPATED. IT PRICED IN THE GOOD NEWS. THE 10-YEAR YIELD BOUNCING UP A LITTLE AFTER WHAT HAS BEEN A ROARING NOVEMBER. FOR THE BOND MARKET AS WELL. PHENOMENAL BY EVERYTHING RALLY
FOR THE NOVEMBER MONTH. CRYPTO GIVING OFF A LITTLE BUT HARDLY ANY MOVEMENT. DOWN BY .1%. THE CONTEXT OF WHERE WE'VE BEEN THIS MONTH, AN EXTRAORDINARY MOVE HIGHER THAT WE'VE SEEN IN THE NASDAQ OVERALL.
WE'VE GIVEN -- YOU SEE OVER THE LAST -- ACTUALLY, QUITE A BIT OVER THE LAST MONTH. UP 9%. THE NASDAQ UP 10% ON THE MONTH, WHICH HAS CLEARLY BEEN THE BEST MONTH FOR THE NASDAQ SINCE JANUARY. BITCOIN UP MORE THAN 9%. IT HAS BEEN AN EVERYTHING RALLY, RISK ON. ED:
IT HAS BEEN A BUSY 24 HOURS. SNOWFLAKES, STRONG OUTLOOK BOOSTING THE STOCK UP. HP UP, MORGAN STANLEY ADDING TO A TWO-DAY RALLY. IT POSTED TUESDAY NIGHT. IT IS SHOWING REAL STRENGTH.
FEW STORIES GIVING EIGHT WEEK SALES OUTLOOK HAMMERING THE STOCK. ELSEWHERE, MUTANT ACTUALLY ACTUALLY UPGRADING ITS BILLINGS FORECAST SUPPORTING THAT STOCK. THE MAIN EARNINGS STORY IS SALESFORCE. THE STORY WITH SALESFORCE IS THAT IT IS COST DISCIPLINE, COST-CUTTING, SHOWING A PATH TO BOOSTING PROFITABILITY. THE STOCK UP 6.5% PUTTING IT ON TRACK FOR ITS BIGGEST JUMP SINCE MARCH. IS THIS HIM LISTENING TO THE
INVESTORS AND ACTING? THE STOCK SEEMS TO BE ACTING SUCH THAT IT IS. CAROLINE: OF MORE THAN 6%. LET'S GE TO IT WITH OUR OWN SALESFORCE REPORTER. IT SEEMS TO BE THIS NEW ERA OF COST DISCIPLINE THAT BENEFITS SALESFORCE. IS THERE UNDERLYING GENERATION HERE TOO? >> IT WAS ABOUT A YEAR AGO TODAY THAT SALESFORCE SAID THAT THERE CO-CEO WAS STEPPING DOWN STEPPING OFF AN UNPRECEDENTED WAVE OF CHAOS. WE SAW EXECUTIVE RESIGNATIONS, ACTIVIST INVESTORS. WHERE IS BRETT TAYLOR? RIGHT.
ULTIMATELY, THEY RAISED THEIR PROFITS INCREDIBLY AND MADE PEOPLE VERY HAPPY BUT THEN VERY SCARED. REVENUE GROWTH STARTED SLOWING DOWN. WHAT WE SAW LAST NIGHT IS THAT AS LONG AS REVENUE GROWTH STAYS STABLE AND PROFITS KEEP GOING UP, THAT IS GOOD ENOUGH FOR NOW. ED: HOW DOES AI PLAY INTO THAT STORY? BRADY: THE HOPE WITH AI IS THAT IT CAN HELP TO BRING REVENUE GROWTH BACKUP. THAT IS IMMATERIAL FOR THE CURRENT YEAR. THEY HOPE WHEN IT COMES TO NEXT
YEAR IT WILL HELP UP SALE PEOPLE ON NEW SUBSCRIPTIONS. YOU HAVE TO PAY EXTRA TO GET THE CHATBOT IN YOUR APPS WHERE YOU CAN USE THAT TO AUTOMATE YOUR PROCESSES. ASK ANY QUESTIONS, BRING IN YOUR FAVORITE LARGE LANGUAGE MODELS. THEY HAVE BEEN PUTTING AI INTO
EVERY SINGLE PRESS RELEASE THAT YOU CAN FIND. YOU KNOW, THE CAT IS OUT ON WHETHER IT WILL TRULY BOOST REVENUE GROWTH THE WAY THAT THEY HELP. ED: BRADY FORD, BUSY EARNINGS SEASON FOR YOU COVERING SNOWFLAKE AS WELL. THE OTHER TOP STORY, THIS -- MUSK AGREED TO AN ANTI-SEMITIC POST ON X, HE HAS BEEN UNDER FIRE FROM THE WHITE HOUSE. FOR THE FIRST TIME SINCE THAT POST PROMPTED THE GLOBAL BACKLASH, MUSK HAS APOLOGIZED FOR HIS CHOICE OF WORDS SAYING THAT THE POST WAS "THE WORST AND DUMBEST HE HAS EVER DONE." THAT WAS DURING THE CONFERENCE IN NEW YORK. HE SAID THAT HIS TRIP TO ISRAEL
WAS PLANNED BEFORE THE ADVERTISER BACKLASH AND WAS NOT AN APOLOGY TOUR. THIS THIS MORNING AT OUR DESK. THIS IS AN APOLOGY, FIRST AND FOREMOST, AND THEN AN EXPLETIVE-LADEN MESSAGE TO THE ADVERTISERS, WHICH WAS BASICALLY, "DON'T ADVERTISE." CAROLINE: HE MIGHT BE APOLOGIZING TO THE MEDIA, THE USER BASE, THOSE THAT HE FEELS PERHAPS MAY HAVE MISUNDERSTOOD HIS MESSAGING, AND SUDDENLY TIME AND TIME AGAIN SAYING THAT HE IS NOT ANTI-SEMITIC, BUT THE WAY THAT HE INTERACTS ON HIS SOCIAL MEDIA PLATFORM IS NOT BEING CLEAR AND CONSISTENT WITH THAT THOUGHT. PUTTING THAT TO ONE SIDE, THE FACT THAT HE CAN BRING BOB IGER'S NAME INTO THE CONVERSATION ON STAGE, EXPLETIVE-LEAST, SAYING YOU ARE THE ONES KILLING X -- WHILE MEANWHILE, PEOPLE WOULD SAY, IS HE THE ONE KILLING X WHILE IT IS HIS OWN ACTIONS THAT HAVE PUSHED AWAY ADVERTISERS? HE IS THE GUY THAT CAN SUSTAIN IT. HE HAS THE MONEY. ED: THERE IS THE DEBT EQUATION OF TWITTER AND HOW HE BOUGHT IT, THE EQUITY HOLDERS IN X, FORMERLY KNOWN AS TWITTER, WHAT HE SAID, AND IT'S FAIR TO POINT OUT, ON NOVEMBER 15 HE REGRETTED THE POST BUT IMMEDIATELY FOLLOWED UP WITH A CLARIFICATION THAT THE MEDIA IGNORED, IN HIS WORDS. AS FOR BOB IGER, HE SAID, HEY,
BOB, I'M SURE YOU ARE IN THE AUDIENCE. WE THINK THAT IS A REFERENCE TO DISNEY CEO BOB IGER, THOUGH HE WASN'T SPECIFIC. CAROLINE: THEY HAVE PROBABLY BEEN TOGETHER IN THE GREEN ROOM BEFORE THAT BECAUSE BOB IGER WAS SPEAKING AT THE CONFERENCE BEFORE THAT. THIS IS NOISE AROUND WHAT WILL BE A BIG MAIN EVENT FOR ONE OF HIS COMPANIES, TESLA. WE REFERENCED HOW INVESTORS HAVE BEEN CONCERNED ABOUT HOW HE IS BEHAVING ON HIS SOCIAL MEDIA PLATFORM. THE FACT THAT WHAT HE WANTS TO , DOMINATE THE HEADLINES TODAY IS THE CYBER TRUCK? >> IT IS A PICKUP THAT MADE A LOT OF HEADLINES.
GOING BACK FOUR YEARS NOW, THIS WAS A TRUCK THAT THEY SHOWED, FAMOUSLY, OR INFAMOUSLY DEPENDING ON YOUR VIEW, THROUGH THE METAL WINDOWS THAT THEY CRACKED. A LOT OF PEOPLE IN THE ROOM GASPED. SO WERE TO SURE HOW SERIOUS IT WAS. IT IS DEAD SERIOUS. IT'S FINALLY READY FOR DELIVERIES A COUPLE OF YEARS LATE, BUT NO QUESTION THAT THIS ONE IS SORT OF A HEAD TURNER. SORT OF AS POLEMIC A VEHICLE AS THEY COME. ED:
THE PICKUP CATEGORY, ELECTRIC OR COMBUSTION ENGINE, IS SACRED IN NORTH AMERICA. IT HAS BEEN WRITTEN SMARTLY ABOUT HOW MUSK HAS BEEN SIGN POSTING FOR YEARS THAT THIS IS REALLY AMBITIOUS. IT WON'T BE EASY TO BUILD. CRAIG:
SHE DID A GREAT STORY THIS WEEK OF REALLY DRAWING PARALLELS BETWEEN THIS IS THEIR FIRST PICKUP. THEY HAD A FIRST SUV YEARS AGO. THE MODEL X. THERE ARE A LOT OF SIMILARITIES IN THE WAY THAT MUSK HAS TALKED ABOUT THESE TWO. WITH THE MODEL X, HE TALKED
ABOUT REGRETTING THE FACT THAT THEY OVERLOADED IT WITH TECHNOLOGY. HE HAS GONE ON TO SAY THAT HE HAS OVERLOADED THE CYBER TRUCK WITH AN AWFUL LOT OF TECHNOLOGY. THERE ARE A LOT OF WAYS THAT THIS MANUFACTURING, THIS PICKUP, COULD GO SIDEWAYS. I THINK HE HAS GONE OUT OF HIS WAY TO BRING EXPECTATIONS DOWN IN TERMS OF HOW QUICKLY THEY WILL BE ABLE TO SCALE THIS UP, WHEN THEY WILL BE ABLE TO DO SO IN A WAY THAT'S NOT BURNING THROUGH LOTS OF CASH. I THINK WE MAY BE SURPRISED. SOME PEOPLE THINK THAT THIS IS
HIDEOUS, AND A BIT OF A MONSTROSITY. SOME THINK THAT IT'S REALLY, REALLY COOL. THERE IS PROBABLY GOING TO BE NO PROBLEM WITH DEMAND. THE QUESTION FOR ME IS, HOW ARE THEY GOING TO SCALE THIS UP AND OVERCOME THE MANUFACTURING CHALLENGES THAT HE HAS FLAGGED GOING INTO THIS? CAROLINE: THANK YOU.
WHAT IS GOING TO STILL BE A VERY MUCH POSTED ABOUT COMMENTARY WHEN IT COMES A LITTLE LATER. WE WILL BE UNPACKING THE LATEST IN THE LAND OF AI DEVELOPMENT AND POLICY REFLECTING ON THE ONE-YEAR ANNIVERSARY OF CHATGPT. THE DIRECTOR OF CORNELL'S TECH POLICY INSTITUTE IS WITH US.
THIS IS BLOOMBERG TECHNOLOGY. ED: SAM ALTMAN IS OFFICIALLY REINSTATED AS THE CEO OF OPENAI AND IT HAS A NEW INITIAL BOARD OF DIRECTORS WITH MICROSOFT JOINING AS A NON-VOTING OBSERVER. THIS HAPPENING ONE-YEAR TO THE DAY AFTER CHATGPT WAS RELEASED AND MADE IT ACCESSIBLE TO THE PUBLIC.
RACHEL, AND A LOT OF NEWS OVERNIGHT AND YOU HAD AN INTERVIEW WITH SAM ALTMAN? RACHEL: I DID. THERE IS A LOT AT OPENAI. A LOT OF IT IS RUBBERSTAMPING THINGS THAT WE ALREADY LEARNED. SAM ALTMAN IS OFFICIALLY BACK AT THE COMPANY AS CEO. GREG BROCKMAN, WHO HAD BEEN
PRESIDENT, IS BACK AT THE COMPANY. MIA, WHO WAS VERY BRIEFLY CEO, HIS BACK AS THE CHIEF TECHNOLOGY OFFICER, AND A BUNCH OF OTHER THINGS THAT YOU RECAPPED. ED: A WHOLE BUNCH OF OTHER THINGS. NOTABLY, MICROSOFT COMES ON AS A NONVOTING OBSERVER. STILL, A LACK OF DIVERSITY AT THE INTERIM BOARD LEVEL, AS WE CONCURRENTLY SEE, BUT I'M INTERESTED THEY ARE SAYING CERTAINLY BRETT TAYLOR WAS WRITING ALONGSIDE SAM ALTMAN IN A POST THAT PREPARE YOURSELF, WE ARE GOING TO BE DIVERSE AND WE ARE LOOKING INTO WHY THIS UPHEAVAL HAPPENED TO BEGIN WITH. RACHEL: ON THE FIRST POINT, DIVERSITY AND ENLARGING THE BOARD, WHEN I SPOKE TO SAM YESTERDAY AND BRIEFLY TO LARRY SUMMERS, ONE OF THE NEW BOARD MEMBERS, THEY SAY THEY ARE PLANNING TO ENLARGE THE BOARD SIGNIFICANTLY.
WOULDN'T GIVE A NUMBER ON HOW MANY WILL BE IN IT EVENTUALLY, BUT THEY'RE PLANNING TO ADD PEOPLE. AS TO THE OTHER POINT THAT YOU WERE MAKING -- NOW I AM BLINKING ON WHAT THAT WAS. -- BLANKING ON WHAT THAT WAS. CAROLINE: WHAT YOU COVERED AND THE AMOUNT THAT YOU COVERED OVER THE LAST FEW DAYS, NO WONDER YOU WILL BE BLANKING. LARRY SUMMERS COMING ON, MANY FEEL IT IS AN EXPERIENCED WARD MEMBER AND HOW THIS BOARD CAN BE EXPANDED AND THOUGHT UPON. HE SAYS GIVE US A MINUTE, WE'VE ONLY BEEN IN THE INTERIM BOARD FOR HALF AN HOUR. THANK YOU FOR YOUR TIME AND OF COURSE CONTINUED CONVERSATION THAT SHE MANAGES TO HAVE WITH THESE KEY EXECUTIVES. ANOTHER KEY ANGLE FROM THE
PROFESSOR OF GOVERNMENT AND TECH POLICY INSTITUTE AT CORNELL. SARAH, BACK IN THE DAY BEFORE OPENAI BECAME A FOR-PROFIT BUSINESS, YOU WERE HELPING ALONGSIDE EARLY OPENAI EMPLOYEES CO-AUTHOR RESEARCH DOCUMENTS THINK ABOUT, ULTIMATELY, HOW GENERATIVE AI CAN WORK HAND-IN-HAND AND BE GOOD FOR HUMANITY. HOW HAS THE ERA OF CHATGPT FAST FORWARDED WHAT YOU THOUGHT WOULD BE ACHIEVABLE IN ARTIFICIAL INTELLIGENCE? SARAH: RIGHT. I STARTED WORKING WITH OPENAI AND 2018 WHEN IT WAS STILL THE NONPROFIT. IN 20 THEY BECAME THE FOR-PROFIT. -- IN 2019 THEY BECAME THE
FOR-PROFIT. THE COMPANY IS REALLY ALMOST A YEAR OLD. IT WAS SO FORMATIVE IN THE TIME BETWEEN 2015 AND 2022 MOST PEOPLE HADN'T HEARD OF IT. WE WERE WRITING AND RESEARCHING. IN 2020 TWO CHATGPT BECAME THIS CONSUMER-FACING PLATFORM THAT WAS SO EASY TO USE, SO USER-FRIENDLY, AND IT TOOK OFF. SETTING RECORDS FOR ITS UPTAKE.
100 MILLION USERS IN THE FIRST TWO MONTHS AND NOW 100 MILLION USERS PER WEEK, WHICH IS ASTONISHING. ED: IT IS INCREDIBLE TO TRACK HOW FAR WE'VE COME IN THE SPACE OF A YEAR. MUCH OF THE PAST TWO WEEKS' EVENTS BUT THE SPOTLIGHT ON WHAT IS TO COME NEXT IN THE NEXT GENERATION OF LARGE LANGUAGE MODEL. THIS IS WHAT BRETT TAYLOR,
INTERIM CHAIR OF THE OPENAI BOARD, SAID THAT WE WOULD HOLD A QUALIFIED, DIVERSE BOARD OF EXCEPTIONAL INDIVIDUALS FROM TECHNOLOGY TO POLICY. TECHNOLOGY POLICY. WHY IS THE MAKEUP OF OPENAI'S BOARD IMPORTANT TO THEIR SUCCESS IN DEVELOPING THE TECHNOLOGY? SARAH: I THINK WHAT WE SAW IN THOSE TWO WEEKS, THE LAST TWO WEEKS, IS THE TUG-OF-WAR BETWEEN THE TWO VISIONS OF WHAT AI SHOULD LOOK LIKE. THERE HAVE BEEN DISCUSSIONS ABOUT HOW MUCH OF THAT WAS A MYTH AND OUTSIDERS READING INTO THINGS THAT WERE NOT THERE, BUT IT SEEMS THERE WERE TWO PHILOSOPHIES OF HOW QUICKLY TO MOVE. THE PHILOSOPHY OF MOVING QUICKLY SEEMS TO HAVE WON OUT. I THINK WHAT THE BOARD SHOULD DO, ITS INTENDED ROLE, IS TO BE A RUNNER IN WHAT COULD BE CHOPPY WATERS. I THINK THE NONPROFIT OR THE
FORMAL BOARD, WHERE THEY GOT INTO THE WAY, WAS THE VISION WAS SO AT ODDS, OR SEEMED TO BE AT ODDS, WITH NOT ONLY THE DIRECTION OF OPENAI BUT ALIEN GENERAL. WE ARE IN A REAL ARMS RACE. THE PERSPECTIVE OF THE OPENAI PEOPLE WHO HAVE STAYED IS THAT THIS TECHNOLOGY IS DEVELOPING QUICKLY WHETHER WE ARE ON BOARD OR NOT, SO WE MIGHT AS WELL BE AT OPENAI LEADING AND TRYING TO DO IT RESPONSIBLY.
SO, WHAT IS THE NONPROFIT BOARD, THE FORMER BOARD, IT WASN'T THAT THEY DIDN'T WANT TO DEVELOP AI, BUT I THINK THEY HAD DIFFERENT WAYS OF DOING IT. THE NEW BOARD WILL TRY TO BE MORE COMPATIBLY ALIGNED WITH THE DIRECTION THAT THE COMPANY AND THE DIRECTION AI IS GOING. CAROLINE: MUCH AROUND AI AND SAFETY HAS BEEN A WORRY ABOUT BIAS.
THAT IS WHY SOME SAY YOU NEED MINORITIES AT THE TABLE AND ENSURE THAT ALL VOICES ARE HEARD. WE REESTABLISHED AT THE INTERIM BOARD AS IT STANDS THAT IT LOOKS PRETTY ON DIVERSE. LARRY SUMMERS IS A PAID CONTRIBUTOR OF BLOOMBERG. I AM INTERESTED INTO WHAT YOU
THINK WILL BE THE NEXT SITUATION. WILL OPENAI BS AGILE MOVING FORWARD? SARAH: THERE HAS TO BE A REAL GOAL. IN GENERAL FOR THEM DIVERSITY ISN'T AN END IN ITSELF COME BUT IT GIVES YOU DIFFERENT PERSPECTIVES. SOME OF THE EARLY VERSIONS OF AI DID WARRANT CRITICISM ABOUT BIAS AND DISCRIMINATION. THERE IS A LOT OF US -- A LOT OF ATTENTIVENESS TO THAT.
TO BE ABLE TO READ TEAM DIFFERENT IDEAS AND PRESENT DIFFERENT PERSPECTIVES WITHOUT BEING MISALIGNED. ALIGNMENT IS A BIG TERM IN THE AI WORLD. CONTRIBUTE INTO A DIFFERENT SET OF PERSPECTIVES THAT CAN BE A FORCE FOR GOOD WHILE NOT HOLDING BACK THE TECHNOLOGY. ED: THE PROFESSOR OF GOVERNMENT AND DIRECTOR OF THE TECH POLICY INSTITUTE AT CORNELL UNIVERSITY. THANK YOU SO MUCH. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: IT IS TIME TO TURN TO THE INTERSECTION OF ARTIFICIAL INTELLIGENCE AND HEALTH CARE.
PHILLIPS IS EXPLORING THE TECHNOLOGY'S POTENTIAL. WHEN IT COMES TO WEARABLES, HOSPITAL TASKS, AND AUTOMATION, WE ARE PLEASED TO WELCOME THE PHILLIPS COO MARKING ONE YEAR AT THE COMPANY. THE MEDICAL VIEWS AND HEALTH CARE APPLICATIONS, AND AI IS A KEY DRIVER. TELL US HOW YOU ARE WORKING WITH THE DEPARTMENTS IN SOME WAYS THOSE LOOKING AT USING WATCHES AND GOVERNMENTS AND CONSUMERS.
>> WE ARE AND MONITORING BUSINESS. WE HAVE A STRONG COLLABORATION WHERE WE CAN INCLUDE OLDER DATA FROM APPLE DEVICES OR RINGS, DEVICES IN THE HOUSE OR HOME, TO INSERT THAT INTO A PATIENT'S CONTACTS TO UNDERSTAND HOW IT MAKES A BETTER DIAGNOSIS OR FULL PATIENT PICTURE. WE MONITOR IN THE HOME FOR CARDIAC RHYTHM PROBLEMS TO EARLY PICKUP SIGNALS THAT CAN PREVENT DETERIORATION LATER.
BRINGING CARE TO THE HOME IS A BIG PART OF WHAT WERE DOING. MAKING SURE THAT WE START THE JOURNEY AS EARLY AS POSSIBLE SO THAT YOU CAN PREVENT DETERIORATION. ALSO, AI IS PICKING UP VERY QUICKLY. COMING OUT OF SICK CONGO -- OF CHICAGO, WE HAD A BIG SHOW OVER HOW WE CAN IMPROVE IMAGING. THERE IS A HUGE DEMAND FOR MORE IMAGES, BUT THE HOSPITAL SECTOR IS CHALLENGED TO HAVE ENOUGH RADIOLOGISTS OR TECHNICIANS TO DO ALL OF THE SCANS.
THAT IS WHERE AI CAN COME TO THE RESCUE TO MAKE A BIG PRODUCTIVITY DIFFERENCE. CAROLINE: THE WAY THAT I USE MY CONNECTED WEARABLES, ONE WAY IS TO TRACK MY SLEEP. I WANT TO SHIFT GEARS. THIS IS ABOUT SLEEP APNEA AND THE MACHINE THAT THE FDA SAYS HAS REPORTS OF OVERHEATING AND CONCERNS ABOUT SLEEP APNEA PRODUCTS. HOW ARE YOU TACKLING THAT AS THE CEO? ROY: WHEN I FIRST CAME INTO THE OFFICE, THE FIRST PRIORITY IS SAFETY AND QUALITY. WE SAID THAT WE NEED TO GET
PROACTIVE IN IDENTIFYING WHAT'S OUT THERE SO THAT WE CAN ADDRESS IT AND PUT THE QUALITY UP. IT'S ABOUT HOW WE IDENTIFY IT AND MAKE SURE THAT WE COME ACROSS THE COMPANY, PROVIDE THE BEST QUALITY CARE AND MAKE SURE THAT IN THE DAILY PRACTICES WHEN WE WORK WITH CUSTOMERS IN THE CONTEXT THAT THEY HAVE WE CAN MAKE SURE THAT THEY CAN RELY ON OUR PRODUCTS. THAT IS SOMETHING THAT WE HAVE BEEN DOING IN OUR STRATEGY. IN THE RECENT QUARTERS, WE HAVE SEEN AN UPTICK IN THE PERFORMANCE OF THE COMPANY BECAUSE WE HAVE BEEN ABLE TO START GROWING AGAIN. WE HAVE FOUR QUARTERS OF GROWTH, WE HAVE UPPED THE GUIDANCE TWICE. THAT WAS UNDER THE PREMISE THAT
SAFETY, QUALITY, SUPPLY CHAIN IMPROVEMENTS, AND SIMPLIFICATION OF THE ORGANIZATION TO DRIVE BETTER IMPACT FOR CARE. ED: GOOD MORNING FROM SAN FRANCISCO. THE MOST RECENT WAS ON THE THERMAL ISSUE OF YOUR CURRENT GENERATION, BUT IT HAS BROUGHT BACK THE DISCUSSION ABOUT THE RECALL OF TWO YEARS AGO OVER THE POLY PHONE DETERIORATION. THERE IS A LARGE BODY OF ECONOMIC WORK THAT SHOWS A LATENCY IN THE CANCERS THAT ARISE FROM EXPOSURE TO DETERIORATING POLY FOAM OVER 20 TO 40 YEARS DOWN THE ROAD. IS PHILLIPS CONSCIOUS OF THAT LATENCY? ROY: WE HAVE DONE EXTENSIVE TESTING TOWARDS THE HEALTH RISK OF DEGRADATION OF THE FOAM. WE HAVE COME FORWARD WITH THEIR TESTING THAT SHOWS THAT THERE IS NO VISUAL HARM FROM THE USERS OF OUR DEVICES. THAT IS SOMETHING THAT WE HAVE DONE OVER TWO YEARS WITH A VERY STRONG EVIDENCE CREATED TOGETHER WITH THE BEST EXTERNAL SCIENTIFIC BODIES AND TOXICOLOGISTS TO MAKE SURE THAT WE HAVE NO PATIENT SAFETY HARM FOR OUR USERS. FROM THERE, WE HAVE BEEN
WORKING WITH THE WHOLE GROUP OF HEALTH CARE PROVIDERS THAT WE ARE CURRENTLY ADDRESSING TO MAKE SURE THAT PATIENT SAFETY AND QUALITY IS THE FIRST PRIORITY. THAT TRANSLATES INTO HOW YOU CAN USE AI TO IMPROVE THE DAILY PRACTICE OF AI. IF YOU LOOK AT WHAT AI CAN DO, IT CAN HELP YOU WITH AND INTERPRET IMAGES IN A MORE ACCURATE FASHION. THEY COULD MAKE SURE THAT THE RADIOLOGISTS WHO ARE READING FROM HOME NOWADAYS, 70%, CAN GET ACCESS TO THE IMAGES AND HAVE THE APPROPRIATE INTERPRETATION SUPPORT WITH AI BEFORE AND AFTER THEIR READS. ED: YOU SET ASIDE 1.1 BILLION DOLLARS FOR REMEDIATION AND 1.5 BILLION FOR LAWSUITS.
IS THAT SUFFICIENT OR WILL WE HAVE TO ADD? ROY: WE HAVE MADE GREAT PROGRESS. WE HAVE REMEDIATED AND WE ARE GETTING BACK INTO PROVIDING SLEEP PRODUCTS TO OUR PATIENTS. WE HAVE PROVIDED FOR THAT AND IT HAS BEEN SUFFICIENT TO DATE.
WE TOOK ECONOMIC LOSS PROVISION EARLIER THIS YEAR THAT WILL ALSO BE EFFECTUATED NEXT YEAR. IF YOU LOOK AT HOW WE ARE GETTING THE REST OF PHILLIPS TO WHERE IT NEEDS TO BE, WE HAVE BEEN MAKING SIGNIFICANT PROGRESS WITH THE PROFITABILITY THAT WENT UP. WE HAVE INCREASED OUR GUIDANCE TWICE FOR THE YEAR. WE HAD 6% TO 7% GROWTH RATE
THIS YEAR, BOTH FROM HEALTH AND THE CONSUMER HEALTH SIDE. WE ARE GETTING THE COMPANY BACK INTO A GROWTH AND CONTRIBUTING LEVEL OFF THE BACK OF OUR INNOVATIONS THAT HAVE REAL, MEANINGFUL IMPACT IN THE HEALTH CARE CHALLENGES OF TODAY WHERE THEY HAVE A MASSIVE PRODUCTIVITY GAP THAT THEY NEED TO ADDRESS WHERE OUR TECHNOLOGY AND AI COMES TO THE RESCUE. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED LUDLOW IN SAN FRANCISCO. CAROLINE:
CAROLINE HYDE IN NEW YORK. HALFWAY THROUGH THE TRADING DAY, A LITTLE BIT OF PROFIT TICKING. THE NASDAQ UP, NOT QUITE A PERCENTAGE POINT. UP .9%. THE BOND MARKET SEEING SIGNIFICANT ACTION UP SEVEN BASIS POINTS. REMEMBER HOW FAST WE'VE COME,
THE BEST MONTH FOR THE BOND MARKET SINCE THE 1980'S. YOU ARE SEEING AN EVERYTHING RALLY. EVERYONE ANTICIPATES THE FEDERAL RESERVE TO START CUTTING AS SOON AS MAY. THE RISK AS SET OF CHOICE IN THE TECHNOLOGY MARKET BITCOIN IS CURRENTLY OFF BY .1% AS THE DOLLAR KICKS UP A LITTLE BIT.
IT HAS BEEN A STORY OF DOLLAR WEAKNESS IN NOVEMBER. SOME OF THE INDIVIDUAL NAMES ON THE DAY, SHINING A LIGHT ON SOME OF THE KEY MOVERS, A NOW 8-YEAR-OLD STARTUP FROM CHINA, THIS IS ALIBABA. MORE THAN $188 BILLION. I'M LOOKING AT WHAT IS HAPPENING IN TERMS OF NUMBERS. DOING WELL BEFORE THE MARKET AND PULLING BACK EVEN THOUGH THEY POSTED GAINS. THIS IS ABOUT ELECTRONIC
AUTOMATIC -- AUTOMATION DESIGN AROUND THE WORLD OF CHIPS. THEY MIGHT BE SELLING OFF PARTS OF THE BUSINESS. WE ARE LOOKING AT A PULLBACK OF 3% FOR THAT BUSINESS. NVIDIA, ARTIFICIAL INTELLIGENCE AND CHIPS MORE GENERALLY, IT SEEMS LIKE A LOT OF THE CHIP-RELATED NAMES IN ARTIFICIAL INTELLIGENCE ARE OFF A LITTLE BIT.
GOING BACK BY 3% AS WELL. ED: BIG MOVES IN PRIVATE MARKETS, TOGETHER A RESEARCH-DRIVEN AI COMPANY LOOKING FOR OPEN-SOURCE MODELS AND DATA SETS RAISED 1.2 5 MILLION DOLLARS IN A SERIES A ROUNDS. OTHER INVESTORS WHO PARTICIPATED INCLUDE NVIDIA, LUX CAPITAL, AND A FEW OTHERS THAT YOU CAN SEE ON YOUR SCREEN. THEY ARE BOTH HERE WITH US IN
SAN FRANCISCO. YOU WANT TO OFFER A PLACE WHERE YOU CAN TAKE A CUSTOM MODEL, AN OPEN-SOURCE MODEL, AND BUILD IT AFFORDABLY. I THINK BEDROCK AWS BECAUSE OF THIS WEEK AND THE NEWS FLOW. WHAT ARE YOU TRYING TO BUILD? >> THANK YOU FOR HAVING US HERE. TOGETHER, WE BELIEVE THAT OPEN SOURCE IS A BIG PART OF AI'S FUTURE. THEY OPTIMIZED CLOUD PLATFORM FOR AI APPLICATIONS ON OPEN AND CUSTOM MODELS.
APIS WHERE WE HAVE HUNDREDS PREPACKAGED AND BEST IN CLASS TOOLS TO ALLOW COMPANIES TO BUILD MODELS FROM SCRATCH OR FINE-TUNE FOR THEIR PURPOSES. ED: IT IS A FEW CHECKS FOR SERIES A. YOU KNOW THIS BETTER THAN MANY. TAKING ON THE HEIGHT OF THE SCALARS, TRYING TO OFFER SOMETHING AT A BETTER PRICE THAN THEY ARE. YOU ARE CONFIDENT THAT THE SCALER AI CAN DO THAT? >> YOU HAVE BEEN COVERING THE SPACE FOR REASON. THIS IS A FUNDAMENTALLY NEW FORM OF COMPUTING AS DISRUPTIVE AS MOBILE. WITH RESPECT TO TOGETHER, WE
ARE SEEING ENTERPRISES WANTING TO BUILD ON THESE OPEN-SOURCE AND CUSTOM MODELS. THEY WILL NEED A PLATFORM UPON WHICH OF THESE MODELS CAN RUN. WE THINK THAT TOGETHER IS THAT PLATFORM. CAROLINE: FROM YOUR PERSPECTIVE, WHAT WE LIKE TO CATEGORIZE PERHAPS IN THE MEDIA AS TENSION BETWEEN OPEN SOURCE AND CLOSED MODELS -- THE OPEN SOURCE MOVEMENT IS AS OLD AS SOFTWARE ITSELF, BUT I'M INTERESTED IN THE CAR CRASH OF A STORY A FEW WEEKS AGO AROUND OPENAI.
SUDDENLY CORPORATE'S ARE THINKING ABOUT BUSINESS CONTINUITY, THAT THEY ARE NOT DEPENDENT ON ONE LLM PROVIDER. HAS THAT CHANGED CONVERSATIONS THAT YOU ARE HAVING WITH CORPORATE? >> IT ILLUSTRATES THE NEED FOR A CHOICE. COMPANIES ARE BUILDING THEIR STRATEGIES AROUND AI WANT CONTROL OF THEIR MODELS, THEY WANT TO ONLY OUTPUT OF THEIR EFFORTS. OPEN-SOURCE IS A GREAT WAY OF
DOING THAT. CAROLINE: FROM YOUR PERSPECTIVE IT CAN BE MORE RESOURCE INTENSIVE TO MANAGE YOUR OPEN SOURCE CODE. I AM INTERESTED IN HOW COMPANIES WILL END UP ALIGNING WHEN IT COMES TO THEIR OWN PROPRIETARY DATA AND BUILDING ON THESE OPEN-SOURCE MODELS? >> OPEN-SOURCE AI IS REALLY HISTORY REPEATING ITSELF. BUSINESSES HAVE BEEN LEVERAGING OPEN-SOURCE IN THE FORM OF DATABASES AND CORE UNDERPINNINGS OF HOW THEY DEVELOP SOFTWARE FOR DECADES. YES, THERE IS OPERATIONAL BURDEN OF -- THIS IS WHERE TOGETHER'S TECHNOLOGY COMES TOGETHER. THEY WANT TO MAKE THAT EASY AND TAKE IT OFF OF THE HANDS OF ENTERPRISES SO THAT THEY CAN REALIZE BENEFITS WITHOUT THE OPERATIONAL BURDEN. ED:
YOU HAVE NVIDIA AS AN INVESTOR, BUT YOU HAVE THEM AS A TECHNOLOGY PARTNER? DO YOU HAVE LETTER H 100'S THE SLING OVER YOUR SHOULDER AND CALL IT A DAY? >> EVERYONE WANTS THAT. NVIDIA IS A LEADING COMPANY IN THE SPACE. I WOULD SAY THAT THEY HAVE THE PLATFORM FOR AI EVERYWHERE. ED: WERE THERE OTHER OPTIONS? CONSIDERING WHAT YOU ARE TRYING TO BUILD, THE WHOLE BUSINESS OFFERING FROM YOU, WERE THERE ANY ALTERNATIVES OTHER THAN NVIDIA TO GET THE COMPUTE NEEDED TO BUILD A PLATFORM LIKE THAT? >> WE CARE A LOT ABOUT PRICE-PERFORMANCE. THE SERVICES THAT WE PROVIDE, OUR INTERIM SERVICE IS SIX TIMES CHEAPER THAN OPENAI. FOUR TIMES CHEAPER THAN AWS. ED: CAN YOU ABSOLUTELY GUARANTEE THAT? >> YES.
THIS IS BOTH A COMBINATION OF OUR HARDWARE STACK AS WELL AS THE SOFTWARE THAT MAKES TRAINING AND INFERENCE MORE EFFICIENT. CAROLINE: BUCKY, THERE HAS BEEN MUCH SAID ABOUT THE HYPE AROUND ARTIFICIAL INTELLIGENCE. WHAT DRAWS YOU TO A TEAM LIKE THIS? IS IT TALENT, WHAT THEY HAVE BEEN PUTTING OUT IN TERMS OF INNOVATION? HOW THEY WILL BE USING A LARGE CHECK YOU PUT TOGETHER? BUCKY: WE HAVE WHAT IT TAKES TO EMERGE AS THE LEADING PLATFORM OF INFRASTRUCTURE FOR THESE BUSINESSES WE BELIEVE WILL BE LEANING IN ON OPEN-SOURCE AND CUSTOM MODELS. WE BELIEVE IT IS A UNIQUE COMBINATION THAT COMES TOGETHER IN A WORLD-CLASS WAY TO TILDE MARKET-LEADING PRODUCT.
TOGETHER IS THE FIRST COMPANY THAT BRINGS IT TO THE MARKETPLACE IN THAT MANNER AND THAT IS WHY WE ARE PROUD TO BE THEIR PARTNER. CAROLINE: THE MONEY, WHAT WILL BE ALLOCATED TOWARDS TALENT? HOW EXPENSIVE HIS TALENT AT THE MOMENT? IS IT BEING BROUGHT TO BEAR WHERE YOU SIT NOW ON THE WEST COAST? OR ARE YOU LOOKING MORE GEOGRAPHICALLY? VIPUL: THE CAPITAL, WE ARE GOING TO DO DEEP INVESTMENTS IN PRODUCT. WE HAVE A VERY DEEP RESEARCH EFFORT. WE INVEST A LOT IN CORE AI RESEARCH TO BETTER MODELS, BETTER MODEL ARCHITECTURES, BETTER DATA SETS AND DELIVER A PLATFORM.
YES, I THINK THE TABLET MARKET IS -- TALENT MARKET IS VERY TIGHT TODAY, BUT WE HAVE SOME OF THE LEADING RESEARCHERS IN THE SPACE, COFOUNDERS AND PART OF THE COMPANY, AND THAT HELPS TO BRING TOGETHER THE RESEARCH COMMUNITY. ED: I FIND INTERESTING THE RATIONALE OF MAKING AN INVESTMENT BASED ON WHAT IS PUT IN FRONT OF YOU. OPENAI IS A MASSIVE COMPANY. HOW MUCH WEIGHT DO YOU PUT ON THE INDIVIDUALS FROM A TALENT PERSPECTIVE? EVERYONE HAS GP USE. THERE ARE VERY FEW DATA SCIENTISTS OR ENGINEERS THAT CAN MAKE THEM WORK, FROM WHAT I UNDERSTAND. BUCKY: AT THIS STAGE STARTUPS ARE ABOUT THE PEOPLE BEHIND THEM. THIS IS A WORLD-CLASS TEAM THAT
BRINGS TOGETHER A UNIQUE COMBINATION OF RESEARCH ENGINEERING AND RESEARCH TALENT THAT WE THINK IS THE MOST POTENT IN THE SPACE. THAT IS WHAT WE ARE EXCITED ABOUT. ED: IT IS ONE YEAR TO THE DAYS SINCE CHATGPT WAS RELEASED. HOW HAS THE LAST 12 MONTHS CHANGED OR ACCELERATED WHAT YOU'VE TRIED TO DO IN AI? VIPUL: IT IS THE MOMENT THAT MADE IT VERY CLEAR OF FOUNDATION MODELS AND THEIR APPLICABILITY. THAT HAS CREATED HUGE MARKET AND INTEREST IN LARGE LANGUAGE MODELS. CAROLINE:
FASCINATING FROM BOTH OF YOU. BUCKY MOORE, SEEING AROUND CORNERS WITH INFRASTRUCTURE WHEN IT COMES TO AI. THANK YOU. AND OF CEO AND COFOUNDER OF TOGETHER AI WITH SERIES A. CHILD SAFETY ONLINE. HOW TECH CEOS HAVE BEEN CALLED CAPITOL HILL TO TESTIFY ON EXPLOITATION. ED:
A QUICK CHECK ON SHARES OF META, DOWN MORE THAN 2%. THE MARKET TOOK A WEIRD TURN AT SOME POINT IN THE SESSION. THE COMPANY PLANS TO APPEAL A DISTRICT DECISION REJECTING ITS ATTEMPT TO BLOCK THE FTC FROM MODIFYING A 2020 SETTLEMENT WITH THE AGENCY THAT REQUIRE THE COMPANY TO UPDATE ITS PRIVACY PRACTICES. IT IS SOMETHING THAT'S PLAYING OUT IN COURT. THERE IS NO CAUSAL LINK, BUT IT'S INTERESTING TO SEE META UNDER PRESSURE. THIS IS BLOOMBERG TECHNOLOGY.
ED: MOVE OVER, ALIBABA. IT LOST ITS SPOT AS CHINA'S MOST VALUABLE E-COMMERCE COMPANY. THE 8-YEAR-OLD PDD HAS GAINED MORE TRACTION WITH INVESTORS WHILE GROWTH FOR ALIBABA HAS SOFTENED. IF YOU ARE A FAN OF NASCAR, YOU WILL BE ABLE TO STREAM THE SPORT ONLINE. NASCAR SIGNED DEALS WITH AMAZON AND WARNER BROS. DISCOVERY TO SHOW RACES ON MY
VIDEO AND ASK STREAMING PLATFORMS -- AND MAX STREAMING PLATFORMS VALUE THAT 7.8 BILLION DOLLARS. MORGAN STANLEY CEO WILL HAVE A SEAT ON THE WALT DISNEY BOARD OF DIRECTORS. GORMAN'S APPOINTMENT WILL BE FEBRUARY 5, 2024 AHEAD OF THE EXPECTED PROXY FIGHT AND REPORTS OF INTEREST IN A BOARD SEAT FROM NELSON PELZ. JEREMY DEREK WILL ALSO BE APPOINTED TO DISNEY'S BOARD EFFECTIVE JANUARY 9. A FORMER SKY CEO. CAROLINE: LET'S TALK ABOUT SOME OF THE OTHER EXECUTIVES ACROSS TECHNOLOGY AT LARGE. THE CEOS OF META, X, SNAP, DISCORD.
THEY HAVE BEEN SUMMONED BY THE SENATE JUDICIARY COMMITTEE TO TESTIFY ON A HEARING OF CHILD EXPLOITATION THAT HAS BEEN GIVEN A DATE OF JANUARY. THIS COMES A FEW WEEKS AFTER META WAS SUED BY CALIFORNIA AND MORE THAN 30 STATES OVER CLAIMS THAT THE SOCIAL MEDIA PLATFORMS EXPLOIT YOUTH FOR PROFIT AND FEED THEM HARMFUL CONTENT. WE WILL HAVE THIS DISCUSSION W. THIS, NO MATTER WHERE YOU SEE
THE LAWSUITS COMING FROM, FROM FAMILIES OR ULTIMATELY AG'S, FROM A FEDERAL LEVEL, ALL OF THEM, ARE THEY LIKELY TO DISRUPT THE BUSINESS MODELS OF THESE COMPANIES ENOUGH THAT WE DO SEE GREATER PROTECTION IN WHATEVER GUISE THAT YOU MIGHT WANT TO SEE IT HAPPEN? INTERNALLY WORKING AT THE COMPANY OR EXTERNALLY USING THEIR PRODUCTS? >> WHAT WE ARE SEEING IS THAT WE ARE AT AN INFLECTION POINT, WHICH IS WHAT YOU DESCRIBED. WHETHER IT IS RESEARCH THAT HAS BEEN DONE BY WHISTLEBLOWERS, RESEARCHERS THEMSELVES, THE LAWSUITS FROM AG'S, PARENTS, SCHOOL DISTRICTS, WE ARE SEEING AN OVERWHELMING SUPPORT FOR THESE PLATFORMS TO TAKE ON MUCH MORE RESPONSIBILITY, TO BE ACCOUNTABLE TO THEIR ACTIONS, AND TO CHANGE THE WAY THAT THEY DESIGN THEIR PRODUCTS. NOW, THESE PRODUCTS ARE DESIGNED TO CAPITALIZE ON CHILDREN'S VULNERABILITIES. WHAT MAKES THEM DIFFERENT THAN OLDER USERS. WE KNOW THAT FROM THESE DISCLOSURES AND THAT IS WHAT PEOPLE ARE LOOKING FOR WHEN THEY ARE GOING THROUGH WITH THESE LAWSUITS AND TESTIMONIES. CAROLINE: WHEN WE THINK OF THE TESTIMONIES, WE THINK OF JUDGE RODGERS THAT HAS ALLOWED THEM TO PROCEED IN SOME WAY.
THE DECISIONS THAT THEY'VE MADE MEANS THAT MUCH BUSINESS MODEL DISRUPTION WON'T HAPPEN. THE ENDLESS SCROLLING WON'T BE SOMETHING FOCUSED ON, BUT MORE ABOUT PROTECTION AND ULTIMATELY OVERSIGHT FROM PARENTS. IS THAT GOING TO BE ENOUGH? IF YOU THINK ABOUT THE OTHER SIDE, WHAT META AND OTHER COMPANIES WOULD SAY, THEY WOULD SAY WHAT WE ARE BUILDING ISN'T WRONG, IT IS THE WAY THAT HUMANITY USES IT IS WRONG. HOW CAN WE GET A BETTER BALANCE? CAMILLE: THE MOST IMPORTANT THING IS TO LOOK AT THE INCENTIVES.
THESE COMPANIES RIGHT NOW ARE INCENTIVIZED TO DIVINE DUCKS -- DESIGN PRODUCTS WITH PROFIT FIRST. WE HAVE AGE-APPROPRIATE DESIGN CODE IN THE U.K., YOU MENTIONED JUDGE ROGERS, THESE SOLUTIONS LOOK AT CHANGING THE WAY THAT THESE PLATFORMS ARE DESIGNED. YOU LOOK AT HOW WE CHANGE THESE PLATFORMS SO THAT KIDS' BEST INTERESTS ARE PUT FIRST. THEY FOCUS ON PRIVACY, THEY FOCUS ON CHANGING FEATURES THAT ARE ADDICTIVE, THEY FOCUS ON PROVIDING A DUTY-FREE CARE REQUIRING PLATFORMS TO PRIORITIZE THE BEST INTEREST OF KIDS OVER PROFITS. I THINK THAT THAT IS THE BEST WAY FORWARD HERE. ED:
YOUR POSITION, AND IT IS SHARED BY OTHERS, IS THAT SOCIAL MEDIA PLATFORMS ARE DELIBERATELY DESIGNED AS PIECES OF TECHNOLOGY TO BE ADDICT TO CHILDREN AND TEENAGERS -- ADDICTIVE TO TEENAGERS AND CHILDREN. RIGHT? TIKTOK SET FORTH A POLICY IN MARCH THAT YOU HAVE TO BE AGED 13 OR DIFFERENT DEPENDING ON LOCAL LAW TO USE THE PLATFORM. ASIDE FROM LEGISLATION AND THE POLICIES OF COMPANIES LIKE TO TALK -- LIKE TIKTOK, WHAT FIXES WOULD YOU RECOMMEND TO SAFEGUARD TEENS AND CHILDREN? WHAT TECHNOLOGICAL SOLUTIONS ARE THERE? CAMILLE: THIS IS A GREAT QUESTION. TIKTOK HAS THIS POLICY, AS WELL AS FACEBOOK AND OTHER PLATFORMS. WHAT WE ARE LEARNING FROM ANY OF THESE DISCLOSURES RELATED TO THE ATTORNEYS GENERAL INVESTIGATION, IS, THAT FOR INSTANCE, META KNOWS THAT THEY HAVE MILLIONS OF UNDERAGE USERS. THEY HAVE MILLIONS OF USERS UNDER THE AGE OF 13 IN VIOLATION OF FEDERAL LAW THAT THEY ARE COLLECTING DATA ON. NOT ONLY DO THEY KNOW THIS,
THEY ARE TAKING GREAT LENGTHS TO MAKE SURE THAT THE PUBLIC DOESN'T KNOW THAT THEY KNOW. THEY ARE STUDYING THESE USERS. THEY ARE CAPITALIZING ON THESE USERS. THESE PLATFORMS ALREADY HAVE A WAY OF KNOWING WHO IS AND IS NOT ON THEIR PLATFORM. THEY ARE CHOOSING NOT TO DO ANYTHING ABOUT IT AND THEY ARE CHOOSING NOT TO MAKE SURE THAT UNDERAGE USERS ARE NOT ACCESSING PRODUCTS THAT AREN'T BUILT FOR THEM. ED:
IN JANUARY, JANUARY 31, I BELIEVE, NUMBER CEOS WILL GO TO CAPITOL HILL FOR A SENATE HEARING. WHEN EXECUTIVES GO BEFORE LAWMAKERS, WHAT IS IT THAT YOU HOPE COMES OUT OF PUBLIC HEARINGS LIKE THAT? HOW DOES IT MOVE THE AGENDA FORWARD? CAMILLE: I THINK THAT THIS IS A REALLY BIG OPPORTUNITY FOR POLICYMAKERS TO PUSH THESE EXECUTIVES ON THE FACT THAT THEY KNOW THAT THEY HAVE USERS ON THEIR PLATFORM THAT ARE NOT SUPPOSED TO BE. THE FACT THAT WE NOW HAVE EVIDENCE THAT THEY ARE INTENTIONALLY DESIGNING PRODUCTS IN WAYS THAT ARE HARMFUL. FOR INSTANCE, THE MOST RECENT META WHISTLEBLOWER SHARED THAT ONE IN EIGHT YOUNG USERS UNDER THE AGE OF 16 EXPERIENCED UNWANTED SEXUAL ADVANCES. DESPITE META KNOWING THIS, INSTEAD OF DESIGNING A REPORTING MECHANISM TO REPORT THIS TO FACEBOOK -- TO INSTAGRAM, FOR INSTAGRAM TO FIX WHAT'S GOING ON, THEY INTENTIONALLY DESIGNED A REPORTING FLOW THAT WAS HARD FOR USERS.
IT TOOK A LOT OF EFFORT AND WAS REALLY LONG. THEY TOOK OUT ALL HUMAN OVERSIGHT. YOUNG USERS AREN'T INCENTIVIZED TO REPORT THIS BECAUSE THE COMPANY DOESN'T DO ANYTHING AND COMPANY ISN'T BEING FLAGGED ABOUT THE ISSUES HAPPENING. I HOPE IN THESE SESSIONS WE CAN GET TO THE BOTTOM OF THE FACT THAT THESE COMPANIES KNOW THAT SOME OF THE PRODUCT DESIGNS ARE HARMFUL AND THAT WE NEED TO END THIS PRACTICE. CAROLINE: I AM SURE THAT WE WILL GO FORTH
TO THESE COMPANIES' LEADERSHIP ABOUT HOW THEY HAVE BEEN RESPONDING. I'M SURE THAT THEY WOULD LIKE TO SAY IN RESPONSE AS TO WHETHER OR NOT THEY HAVE TRIED TO MAKE IT MORE OR LESS DIFFICULT FOR THESE THINGS TO BE REPORTED. WE THANK YOU SO MUCH FOR YOUR INSIGHTS.
THE CENTER FOR HUMANE TECHNOLOGY. WE WOULD POTENTIALLY LIKE TO BE GETTING AHEAD OF THAT JANUARY 31 ON CAPITOL HILL. WHAT WE HAVE COMING UP? ED: ROBIN HEARD IS LAUNCHING COMMISSION FREE TRADING OF U.S.
STOCKS IN THE U.K. WE WILL HEAR FROM THE CEO NEXT. THIS IS BLOOMBERG TECHNOLOGY. ED: ROBINHOOD IS MAKING ITS INTERNATIONAL DEBUT LAUNCHING COMMISSION-FREE STOCK TRADING IN THE U.K., ROLLING OUT TRADING OF U.S.-LISTED STOCKS AND SECURITIES TO BRITISH RETAIL
INVESTORS ARE THE CEO SPOKE TO TOM MACKENZIE. VLAD: WE HAVE PRODUCTS FOR CUSTOMERS WHO HAVE LOW RISK APPETITE FOR FINANCIAL RISK AS WELL. I THINK THAT WE CAN SERVE THEIR NEEDS. I THINK THAT THERE ARE TWO THINGS THAT WE DO EXCEPTIONALLY WELL IN THE U.S. THAT CARRYOVER IN THE U.K. DESPITE ANY CULTURAL
DIFFERENCES. PEOPLE IN THE U.K. LOVE EASY TO USE, COMPELLING MOBILE INTERFACES AND THEY LOVE GETTING THE BEST POSSIBLE ECONOMICS ON INVESTING AND OTHER FINANCIAL SERVICES. THESE TWO THINGS HAVE BEEN THE CORNERSTONES OF ROBINHOOD PRODUCT DESIGN AND DEVELOPMENT. WE HAVE A BEAUTIFUL -- OUR CUSTOMERS LOVE THE BEAUTIFUL, ALMOST MAGICAL QUALITY OF THE ROBINHOOD EXPERIENCE AND APPRECIATE THE FACT THAT THEY ARE GETTING INDUSTRY-LEADING ECONOMICS. WHEN WE TALK TO CUSTOMERS IN THE U.K., THERE'S A LOT OF ENTHUSIASM OVER BRINGING THESE THINGS TO THIS MARKET. TOM:
HAS CRYPTO BOTTOMED? IS IT WORTH BEING IN THE CRYPTO SPACE BEING WHAT HAPPENED WITH FTX? IS IT AN OPPORTUNITY FOR ROBINHOOD TO TAKE MARKET SHARE? VLAD: IN THE LONG RUN IT IS CERTAINLY AN OPPORTUNITY AND GOOD FOR THE INDUSTRY TO HAVE UNSCRUPULOUS ACTORS WEEDED OUT AND FALLING OFF. IN ORDER FOR THE INDUSTRY AND TECHNOLOGY TO BECOME TRULY GLOBALLY ACCEPTED, THERE HAS TO BE A FOUNDATION OF REGULATORY COMPLIANCE. IT HAS TO BE INTEGRATED MORE INTO THE TRADITIONAL FINANCIAL SYSTEM AND HELP SOLVE REAL PROBLEMS FOR PEOPLE. ROBINHOOD CONTINUES TO BUILD CRYPTO TECHNOLOGY AND BE A LEADER THERE. WE ARE PLEASED WITH THE GROWING MARKET SHARE THAT WE'VE BEEN SEEING IN THE U.S.
EVEN THROUGH THE WINTER. AS YOU PROBABLY KNOW, IN THE U.K. WE ARE NOT LAUNCHING WITH CRYPTO. WE ARE VERY FOCUSED ON U.S. SHARES AND THE HIGH PRODUCT WITH NO ETHICS F -- NO FX FEES. WE ARE ALSO EXPANDING IN THE EU AND WILL HAVE CRYPTO AVAILABLE IN THE EU IN THE COMING WEEKS. CAROLINE: THAT DOES IT FOR THIS EPISODE OF BLOOMBERG TECHNOLOGY. ED: BLOOMBERG TECHNOLOGY PODCAST,
2023-12-02