>> BLOOMBERG TECH IS LIVE FROM
COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW
IN SAN FRANCISCO. ED: THIS IS BLOOMBERG TECH.
MICRON WITH MEMORY BUSINESS FUELS A SALES SURGE.
MORE ON ITS EARNINGS RESULTS NEXT. CAROLINE:
HOW EXPO BACKED BY ALAMEDA CAPITAL DEVELOPED AN AI TOOL
THAT DOES BETTER THAN EXPERIENCED HACKERS. ED: WE DIVE INTO PAL AND TEARS
STOCK RALLY SINCE OCTOBER AS DEFENSE TECH BECOMES
INCREASINGLY INTO FOCUS. >> THE S&P 500 INCHING IN ON
ITS RECORD HIGH AS THE MARKET FOCUSES IN ON THE FEDERAL
RESERVE. COULD WE HAVE THREE RATE CUTS
AS SOON AS THIS YEAR AS WE SEE ECONOMIC DATA IN THE MIX.
LOOKING AT 5/10 OF A PERCENT PUSH HIGHER ON THE NASDAQ 100
FEELING OF A RISK ON ATTITUDE TOWARD CERTAIN CHIPMAKERS. ED: MICRON POSTED A REALLY STRONG
FORECAST FOR THE CURRENT PERIODS, OPENED UP 2% HIGHER IS
NOW DOWN 1%. WE CAN GET INTO THE REASONS WHY.
NVIDIA WE HAD THE TEPID MORNING NOW BACK CONTINUING TO HOLD
THAT A FRESH ALL-TIME HIGH. MICRON LET’S GET INTO BLOOMBERG
INTELLIGENCE ANALYSIS WITH JAKE SILVERMAN.
LOOKING THROUGH THE TRANSCRIPT OF THE CALL THE FORECAST SHOWS
DEMAND IN THE AI CONTEXT BUT PRICING IS A REALLY KEY
CONVERSATION. JAKE: ABSOLUTELY. SO AI IS PARTICULARLY STRONG
TAILWIND FOR PRICING BUT YOU HAVE TO KEEP IN MIND THE
CONSUMER MARKET IS STILL IMPORTANT FOR MICRON. AS WE THINK OF SMARTPHONES BUT
ALSO PCS AND OTHER SSD PRODUCTS. WE ARE GOING TO HAVE TO SEE
SOME OF THOSE SEASONAL TAILWINDS, SMARTPHONE PC
UPGRADES THOSE ARE BENEFICIAL PRICING BUT ALSO STRUCTURAL
LIMITATIONS IN TERMS OF CAPACITY. CAROLINE:
BASICALLY FOR MANY OF THESE COMPANIES IT’S BEEN A SUPPLY
ISSUE RATHER THAN A DEMAND ISSUE.
WE SEEN THIS WITH THE SHARES YOU’VE SEEN OUTPERFORMING ABOUT
50% OVER THE COURSE OF YEAR TODAY.
WASN’T JUST THAT SO MUCH WAS PRICED INTO THE MARKET HOW HIGH
HAVE EXPECTATIONS BEEN? JAKE: AS WE’VE SEEN SPOT PRICES AND
CONTRACT PRICES INCREASE IN THE RECENT WEEKS AND MONTHS THAT
BUILT INTO SOME OF THE EXPECTATIONS.
SOMETHING THAT CONTINUES TO BE CONSIDERED FAIRLY IMPORTANT FOR
SENTIMENT IN MICRON BUT IT IS ALSO A FAIRLY SMALL PERCENTAGE
OF THE COMPANY’S OVERALL REVENUE. THERE ARE PRETTY HIGH
EXPECTATIONS ACROSS MULTIPLE FACETS OF THE BUSINESS.
THERE’S BEEN A NEED TO CONTINUE TO GAIN SHARE IN HIGH-BANDWIDTH
MEMORY AND CONTINUE TO EXECUTE IN THAT REGARD BUT ALSO THE
COST OF OTHER AI PRODUCTS AS WELL MANAGING THE REST OF THEIR
BUSINESS WHICH DRIVES A LOT OF THAT PRICING STRENGTH. >> EXECUTIVES ON THE CALL WERE
CLEAR DATA CENTER GROWTH SEQUENTIALLY YEAR ON YEAR THAT
WILL CONTINUE TO OUTPERFORM AND SOME OF THE OTHER BUSINESSES
NOT AS STRONG. IN THE BACKGROUND THEY ARE
INVESTING IN AND BUILDING OUT CAPACITY.
HELP THE AUDIENCE UNDERSTAND HOW DIFFICULT IT IS TO PRODUCE
HBM AND WHAT THE BOTTLENECK FOR THAT IS FOR MICRON AND THEIR
CUSTOMERS. >> IT’S A LITTLE BIT MORE
COMPLEX MAYBE FAIRLY MORE COMPLEX WILL ME THINK ABOUT
ACTION PRODUCING RELATIVE TO OTHER MEMORY PRODUCTS.
IS STACKED HBM’S SO THEY’VE TALKED ABOUT 12 HIGH STACK,
EIGHT HIGH STACK SO THAT GIVES YOU THE DIMENSIONS VAL HIGH
THESE STACKS CAN GO AND AS YOU INCREASE THE HEIGHT IT
INCREASES THE COMPLEXITY. MICRON IS ABLE TO CHARGE A
PREMIUM. SO YIELDS A VERY IMPORTANT
TOPIC OF CONVERSATION WE BRING UP COMPLEXITIES OF THEIR
ABILITY TO EXECUTE IN TERMS OF IMPROVING CAPACITY AND THE
YIELD DRIVING THEIR ABILITY TO INCREASE THEIR SHARE AND ALSO
INCREASE THEIR GROSS MARGIN. >> JAKE SILVERMAN ON OFFERINGS
MICRON LET’S KEEP TALKING AI ON THE BROADER TECH MARKET.
JAY JACOBS JOINS US AND I AM LOOKING AT THE ENTHUSIASM
AROUND AI INNOVATION AND TECH ACTIVE ETF.
THE TOP HOLDINGS ARE NVIDIA AND BROADCOM.
HOW MUCH DO INVESTORS WANT TO BE IN ON THE CHIP BUT BROAD NOW
PERHAPS? JAY: THE PORTFOLIO MANAGER IS
LOOKING ACROSS THE VALUE CHAIN FOR OPPORTUNITIES IN ARTIFICIAL
INTELLIGENCE. RIGHT NOW WHERE HE SEES SOME OF
THE BIGGEST OPPORTUNITY IS THOSE INFRASTRUCTURE AND
HARDWARE NAMES. IF YOU LOOK OVER THE MONEY IS
BEING SPENT ALMOST A QUARTER OF A TRILLION DOLLARS BEING SPENT
BY THE MEGA CAP TECH NAMES BEING CONCENTRATED IN
SEMICONDUCTOR NAMES AND DATA CENTERS AND THE SUPPORT COMPUTE
AROUND THAT SO OUR FUND IS TILTED TOWARDS THAT EXPOSURE.
CAROLINE: NVIDIA AT A RECORD HIGH AS WELL.
BUT IT HAS BEEN VERY CLOSE TO RECORD HIGHS THROUGHOUT IT IS
AT A RECORD HIGH TODAY. HOW MUCH IS THERE TO GO ON THAT
INFRASTRUCTURE PLAY. HOW MUCH CAN YOU SWEAT IT IN
ETF’S? JAY: IT IS STILL EARLY. WE ARE EXPECTED $7 TRILLION TO
BE SPENT ON AI CAP X SO WE HAVE A LONG WAY TO GO.
I STILL THINK WE’RE IN THE EARLY INNINGS.
OVER TIME THE EXPOSURE WILL EVOLVE.
THIS IS THE BUILDOUT STAGE ON THAT INFRASTRUCTURE THE NEXT
STAGE WILL BE MORE ABOUT ADOPTION OF AI COMMERCIALIZING
THE AI PRODUCTS. ED: PART OF YOUR THESIS IS THIS
OVERCONCENTRATION IN MEGA CAPS. THERE IS AN INTERESTING SIDE
DEBATE WHICH IS WHETHER WE SHOULD RETHINK THE COMPOSITION
OF THE MAG 7, BROADCOM PERHAPS MAKING THE STRONGEST CASE ON
FUNDAMENTALS ABOUT JOINING OR PARTICIPATING IN THE GROUP.
ALL OF THAT TO SAY WHAT SHOULD WE DO IF THAT IS THE CASE IF WE
ARE OVERCONCENTRATION WHERE ELSE DO WE LOOK? JAY:
WALL STREET LOVES A GOOD ACRONYM AND MAYBE THERE IS TIME
FOR ONE. I THINK IT’S ABOUT LOOKING
BEYOND CONCENTRATING ON MADE CAP TECH NAMES.
THEY ARE IMPORTANT PLAYERS BUT THEY DO NOT ENCAPSULATE ALL OF
IT. WE’VE LOOKED ACROSS 20,000 DIFFERENT PORTFOLIOS AND FOUND
95% OF THE AI EXPOSURE IS COMING FROM MEGA CAP TECH NAMES
SO PEOPLE ARE OVERWEIGHT MEGA CAP TECH LARGELY A FUNCTION OF
HOW THE S&P 500 IS. UNDERWEIGHT THE BROADER
LONGTAIL OF BROADER NAMES AND DATA AND COMPUTE.
WE THINK IT’S ABOUT REDUCING LARGE-CAP TECH BECAUSE THERE’S
A LOT OF CONVERSATION AND BROADENING IT OUT ACROSS THE
VALUE CHAIN. ED: WHAT ABOUT NON-TECH SECTORS
THAT ARE MOST IMPACTED BY AI OR TRANSFORMED BY AI?
WHERE DO YOU WANT TO LOOK? JAY: ONE OF THE AREAS IS A LOT OF
DATA THAT HASN’T BEEN FULLY HARNESSED BY ARTIFICIAL
INTELLIGENCE AND YOU HAVE TO LOOK AT THE HEALTH CARE SECTOR
IS BEING PRIMED FOR USING THAT INFORMATION AROUND PATIENT DATA
AND HOSPITAL MANAGEMENT, THE DEVELOPMENT OF NEW DRUGS, THERE
IS JUST SO MUCH DATA THAT FRANKLY HAS BEEN UNDERUTILIZED
THAT IF YOU COULD APPLY ARTIFICIAL INTELLIGENCE YOU
COULD GET MORE EFFICIENT AND REDUCE THE COST OF DRUG
DEVELOPMENT, YOU COULD IMPROVE PERFORMANCE AT OUTCOMES FOR
PATIENTS WHICH WOULD MAKE THE SECTOR AN ATTRACTIVE ONE FROM
AN ARTIFICIAL INTELLIGENCE PERSPECTIVE. >> I GO BACK TO THE INNOVATION
AND TECH ETF. MOST OF THE TOP HOLDINGS YOU
HAVE TO GET NUMBER 15 TO GET A JAPANESE COMPANY AND THAT A
SPRINKLING COMING IN. IS IT STILL U.S.
EXCEPTIONALISM HERE? >> IT’S A FUNCTION OF WHERE WE
SEE THE BEST PUBLIC MARKET OPPORTUNITIES IN ARTIFICIAL
INTELLIGENCE BEING LED BY THE UNITED STATES.
SOME OF THE LOWEST COST OF CAPITAL AND SOME OF THE MOST
INNOVATIVE COMPANIES. A VIBRANT STARTUP COMMUNITY
FUELING IPOS IN THE SPACE AS WELL.
IT IS A GLOBAL TREND AND WE HAVE GLOBAL EXPOSURE BUT RIGHT
NOW THE U.S. IS VERY MUCH IN THERE. >> GET US UP TO SPEED ABOUT 2
BILLION COMING IN OF LATE INTO THE CLIENT ASSETS. >> WE BROUGHT IN $2 BILLION
OVER THE LAST NINE MONTHS AND ONE OF THE MAJOR THINGS IS THE
TARGET ALLOCATION MODEL HAS ALLOCATED TO AI A MODEL
PORTFOLIO MANAGERS HAVE LOOKED AT THE LANDSCAPE AND SAID IF WE
WANT TO REDUCE LARGE-CAP TECH EXPOSURE AND SOME OF THIS TECH
SECTOR EXPOSURE AND REPLACE IT WITH ARTIFICIAL INTELLIGENCE
BECAUSE IT’S A HIGH CONVICTION FIEND IN THE LONG RUN.
SO THEY HAVE BEEN PUSHING THAT TO GET MORE MARKET PLAY IN THE
AI FEED. CAROLINE: HUME — ED:
HUMOR ME, FED CHAIR POWELL POSED MANY QUESTIONS ON THE
IMPACT OF AI AND THE FUTURE OF THE ECONOMY AND FED POLICY IT
WAS DIFFICULT FOR HIM TO ANSWER. YOU THINK ABOUT IT IN THOSE
TERMS? YOU SAY LOOK AT THE ECONOMY OF
THE U.S. AND THE WORLD AND TRY TO
CALCULATE HOW STRUCTURALLY THINGS MIGHT CHANGE GOING
FORWARD. JAY: IT’S AN IMPORTANT AREA TO LOOK
AT WHERE AI CAN AUGMENT OR HOW CAN IT MAKE US MORE EFFICIENT
CAN WE ACCELERATE PRODUCTIVITY IN THE CONTEXT THAT AGING
POPULATIONS AROUND THE WORLD. MANY CASES THE GROWTH OF THE
LABOR MARKET IS SLOWING AND SO YOU REALLY ALMOST NEED AI AND
THAT PRODUCTIVITY GROWTH TO MAINTAIN STRONG GDP GROWTH
ACROSS THESE DEVELOPED ECONOMIES.
IN MANY WAYS AI WILL BE AN INCREDIBLE TOOL TO BOOST
PRODUCTIVITY AND A TOOL DEVELOPED MARKETS NEED TO LEAD
IT. IT’S WHY WE ARE SEEING AI AT THE CRUX OF GEOPOLITICS.
POLICYMAKERS SEE IT AS SUCH AND ACCELERANT TOWARDS OUR ECONOMY
IN THE LONG RUN. CAROLINE: — ED:
THROUGHOUT THE DAY WE WILL BE TALKING ABOUT PALANTIR AND
MAKES ME THINK NOT JUST ABOUT SOFTWARE BUT THIS KIND OF
BROADER AMERICAN EFFORT TO RE-INDUSTRIALIZE THE COUNTRY.
IN A NUMBER OF SECTORS DEFENSE ARTIFICIAL INTELLIGENCE DATA
CENTERS, IS THERE A BIG PICTURE EFFECT YOU ARE TRYING TO JUMP
ONTO IN THIS RE-INDUSTRIALIZATION, THE
MANUFACTURING OF STUFF IN AMERICA? >> WE’VE LOOKED AT FIVE MEGA
FORCES AROUND THE WORLD THAT ARE CHANGING THE TRAJECTORIES
OF ECONOMIES AND ONE IS AGING POPULATIONS. THE THIRD ONE IS REALLY
GEOPOLITICAL FRAGMENTATION. ALL OF THESE ARE COMBINING TO
BRING IN CERTAIN THEMES LIKE INFRASTRUCTURE.
HOW WHEN WE SEE THEY WANT TO BUILD IN THE UNITED STATES WE
HAVE TO HAVE BETTER ROADS AND HIGHWAYS, BETTER POWER TO
ACCELERATE THAT. HOW DO WE HAVE THE BEST
TECHNOLOGY IN THE WORLD THROUGH ARTIFICIAL INTELLIGENCE AND
LEANING INTO THAT. SO ALL OF THESE ARE KIND OF
COLLIDING HERE TO REALLY LEAD SOME OF THE BEST ECONOMIC
OPPORTUNITIES IN THE U.S.. >> GREAT TO HAVE YOU BACK ON
BLOOMBERG TECH THANK YOU VERY MUCH.
CHINA GIVES APPROVAL FOR MORE M&A AMONG ITS TECH GIANTS.
IT’S A BIG STORE WE ARE WATCHING NEXT AND THIS IS
BLOOMBERG TECH. ♪ CAROLINE: TIME FOR TALKING TECH.
A GROWING NUMBER OF CHINESE AI STARTUPS LOOKING TO LIST IN
HONG KONG. INCLUDING A FIRM SPECIALIZING
IN VISUAL PERCEPTION THE COMPANY WHICH IS BACKED BY
INTEL CAPITAL IS LOOKING TO RAISE ABOUT 100 MILLION DOLLARS
FOR A LISTING THAT COULD HAPPEN LATER THIS YEAR.
DIGITAL PAYMENT PROVIDER PI LABS HAS FILED TO GO PUBLIC IN
INDIA. THEY WILL SEEK TO RAISE AROUND
$303 MILLION. INDIAN CAPITAL MARKETS ARE
SEEING A RESURGENCE IN LISTINGS FUELED BY THE PUSH TO DIGITIZE
THE ECONOMY. THE PRESIDENT AND CEO TOKYO
ELECTRON IS SHRUGGING OFF CONCERNS ABOUT COMPETITION FROM
CHINA. HE SPOKE WITH SHERRY ON IN
TURKEY. >> I THINK IT’S POSSIBLE TO
MAINTAIN THE DIFFERENCE BETWEEN CHINA AND OUR COMPANY.
I’M SURE THE CHINESE VENDORS ARE TRYING TO CATCH UP WITH US
BUT WE MUST BE FASTER, WE CAN BE FASTER THAN THEM IN
TECHNOLOGY INNOVATION AND THAT’S HOW WE CAN MAINTAIN OR
INCREASE THE DIFFERENCE. WE ARE THE SPE MANUFACTURER BUT
WE ARE NOT CHIPMAKERS. FOR US IT IS KEY TO WORK WITH
THE WORLD LEADING CHIP MANUFACTURER TO DEVELOP THE
BEST IN THE WORLD PROCESS AND BEST IN THE WORLD EQUIPMENT.
CAROLINE: YOU CAN WATCH THE FULL INTERVIEW ON BLOOMBERG TECH
ASIA CATCH THE PREMIER AT 8:30 A.M. EASTERN — A: 30 P.M.
EASTERN TIME. ED:
THE FIRST ELECTRIC SUV, OF WHY YOU SEVEN.
IN JUST THREE MINUTES. FOR MORE, PETER JOINS US.
ON THE LIVE FEED DURING THE PRESENTATION I NOTICED SEVERAL
MILLION PEOPLE WERE TUNED IN. WHAT WE KNOW ABOUT THIS NEW SUV
AND THE APPETITE FOR THEM. >> THE EXCITEMENT AROUND IT IS
QUITE SOMETHING. THE FOUNDER DID THIS
PRESENTATION IN BEIJING A LITTLE WHILE AGO AND TALKED
ABOUT THIS NEW SUV PRICE RUN $35,000 AT THE LOW-END IT WILL
GO UP TO ABOUT $36,000 AND HE TOOK AIM DIRECTLY AT TESLA.
TESLA’S MODEL Y IS THE BEST-SELLING SUV IN CHINA RIGHT
NOW AND DIRECTLY AFTER THEM WANTING TO GO COMPETE WITH THEM
ON PRICE AND FEATURES AND SO FAR THEY’VE BEEN GAINING A LOT
OF GROUND. THEY ARE BEST KNOWN FOR THEIR
SMARTPHONES. THEY BEGAN BY COMPETING AGAINST
APPLE WITH THEIR SMARTPHONES INTO A LOT OF INNOVATIVE THINGS
WITH THAT COMPANY. THEY MODEL THEMSELVES AFTER
STEVE JOBS FORUM EVEN THE BLACK TURTLENECKS BUT NOW THEY’VE
BEEN DIVERSIFYING INTO A NUMBER OF DIFFERENT AREAS INCLUDING
APPLIANCES AND LUGGAGE. WHEN I VISIT THEM IN BEIJING
THEY HAVE ALL SORTS OF GOODS OUT THERE.
THE MOVE INTO CARS IS SOMETHING DIFFERENT.
THE STOCK HAS TAKEN OFF THE SHARES ARE REALLY SOARING THEY
HAVE TRIPLED OVER THE LAST YEAR AND YOU ARE SEEING THIS
REFLECTED IN THE STRONG DEMAND FOR THE NEW SUV. >> EXTRAORDINARY 200,000 IN
THREE MINUTES. WE HAVE 289,000 IN ONE HOUR.
PETER THERE WAS A WORRY ABOUT ALMOST — ALL THIS INNOVATION
HAPPENING TOO QUICKLY AND A CRASH WITH THE S SEVEN IS THAT
BEING SHRUGGED OFF? >> THERE WAS A CRASH IN CHINA
WHERE IT LED TO A FATALITY. THEY DID HIT THE PAUSE BUTTON
ON SIMILAR SALES AT THAT POINT AND LOOKED AT THE TECHNOLOGY
WITHIN THE CAR BUT NOW THEY ARE MOVING FOR THE INTRODUCE THIS
NEW VEHICLE THEY FEEL LIKE THEY PUT THAT BEHIND THEM.
AND NOW THEY ARE SEEING STRONG CUSTOMER DEMAND FOR THESE CARS.
AS WE WERE TALKING A LITTLE BIT ABOUT BEFORE YOU CAN GET
EFFECTIVELY A PORSCHE LOOKING CAR IT’S AN EV FOR $35,000,
CHINESE CONSUMERS LIKE THAT OFFER. >> I FIND POLICY IN CHINA ON
TECH COMPANIES FASCINATING. THINK, THE VIDEOGAMES INDUSTRY
IN THE LAST COUPLE OF YEARS NOW ALLOWING M&A.
ARE YOU ABLE TO SUMMARIZE WHAT THE CHINESE GOVERNMENT’S
ATTITUDE IS TOWARDS THE TECH SECTOR OVERALL? >> THAT’S A BIG ASK.
BUT I WILL DO WHAT I CAN. WHAT YOU SAW, IS GROWING
DOMINATION BY A COUPLE OF THE BIGGEST TECHNOLOGY COMPANIES
ESPECIALLY ALIBABA AND TENCENT. TONS OF MONEY AND STARTUPS.
HUNDREDS OF COMPANIES THEY INVESTED AND THEY HAD THESE
ECOSYSTEMS THAT THEY KIND OF CONTROLLED AND THAT REALLY
LASTED DURING THE BOOM YEARS AFTER ALIBABA WENT PUBLIC
MAKING A LOT OF MONEY ON THESE CHINESE TECH STOCKS IN
PARTICULAR WE HAD THIS BIG CRACKDOWN.
AFTER HE SPOKE OUT AGAINST REGULATORS, THE IPO WAS PULLED
AND AFTER THAT ESSENTIALLY ALL THIS M & A STOPPED.
THERE WAS NO MORE CONSOLIDATION. COMPANIES HAD TO ROLL BACK A
LOT OF THE PLANS THEY HAD ALIBABA SOLD OFF A BUNCH OF ITS
ASSETS AND NOW WHAT WE ARE SEEING PARTLY BECAUSE THE
CHINESE ECONOMY IS A BIT ROCKY AT THIS POINT THEY NEED MORE
SUPPORT FROM THE PRIVATE SECTOR AND THEY’VE GIVEN MORE SUPPORT
TO THE TECH COMPANIES IN PARTICULAR THEY’VE SEEN SOME
NEW BREAKTHROUGHS LIKE DEEPSEEK AND AI, HUAWEI HAS MADE A LOT
OF PROGRESS SO NOW ALIBABA AND TENCENT ARE ABLE TO GO BACK TO
DOING SOME M&A THEY ARE BEGINNING TO DO A LITTLE BIT
IT’S NOTHING LIKE THE SCALE THEY DID IN THE PAST BUT THEY
ARE ABLE TO MAKE SOME ACQUISITIONS. >> PETER ELSTROM ANSWERING THE
DIFFERENT QUESTIONS. THANK YOU VERY MUCH.
TSMC SET TO INJECT 20 BILLION IN CAPITAL INTO ITS OVERSEAS
UNIT TO SHORE UP ITS CURRENCY HEDGING OPERATIONS CONSISTING
MAINLY OF BANK DEPOSITS AND BONDS.
IT’S SEEN AS A WAY FOR THEM TO MANAGE EXCHANGE RATE RISKS AND
COUNTER THE IMPACT OF A STRONGER TAIWANESE DOLLAR WHICH
HAS HER EXPORTERS AND INCREASED HEDGING COSTS. CAROLINE:
COMING UP WE WILL DISCUSS HOW THE SPIKE IN CORE WE’VE STOCK
PRICE PROPELLED THE FORTUNES OF ITS CEO AND INVESTORS AT AN
UNUSUAL SPEED. THIS IS “BLOOMBERG TECH.” ♪ ED: AFTER RECEIVING A TEPID RESPONSE FROM INVESTORS IN
MARCH, CORE WE’VE STOCK HAS HAD A METEORIC RISE OF AROUND 300%
WHICH PROPELLED THE COMPANY CEO INTO THE RANKS FOR THE WORLD’S
RICHEST WITH SOME UNUSUAL SPEED. THIS IS LIKE KEY TECH WEALTH
COVERAGE, SLOW START ON THE IPO THINGS CHANGE AND NOW A KEY
FIGUREHEAD HAS A PRETTY HEALTHY NET WEALTH. >> JUST LIKE YOU WERE SAYING IN
SOME WAYS MIRRORING THE TRAJECTORY MORE GENERALLY OVER
THE COURSE OF THE YEAR. WHEN THE COMPANY DEBUTED IN
MID-MARCH THEY WERE INITIALLY SEEKING TO RAISE $35 BILLION
VALUATION ENDED UP COMPLETING THE OFFERING AT $23 BILLION
VALUATION. THE CEO CAME ON BLOOMBERG
TELEVISION AND SAID WITHOUT A BIG ORDER FROM NVIDIA, ONE OF
THEIR LARGEST INVESTORS, THE DEAL MIGHT NOT EVEN HAVE CLOSED.
THE STOCK TRADED PRETTY FLAT A FEW MONTHS AFTER THAT.
THAT’S GENERATED SOME REALLY SICK OF IT WEALTH GAINS NOT
JUST FOR THE CEO BUT FOR OTHER COFOUNDERS IN EARLY INVESTORS.
CAROLINE: NOW THE 311TH RICHEST PERSON.
NOW AHEAD OF ROBERT KRAFT. I THINK OF THE COMPANIES THAT
BACKED THEM EARLY. HE MANAGED TO GO OUT THERE AND
CONVINCE THE MARKET OF THE BUSINESS MODEL PERHAPS GOT
MISUNDERSTOOD OR UNDERAPPRECIATED WHEN THE IPO
CAME OUT. >> THE STOCK STARTED TICKING UP
AFTER REPORTING FIRST-QUARTER EARNINGS, THEY BEAT ESTIMATES
THERE. NVIDIA DID INCREASE THE SIZE OF
THEIR STEAK AND IS BEEN ALL UP FROM THERE.
GENERATING SOME MEME STOCK COMPARISONS FROM SOME
COMMENTATORS. FOR TRADERS SPECIFICALLY HIS
NET WORTH SITTING AT $10.3 BILLION.
IT’S THE SPEED OF THAT AS WELL FOR THE BLOOMBERG BILLIONAIRES
INDEX, THE AVERAGE TIME IT TAKES FOR SOMEONE TO GO FROM A
5 BILLION TO A BILLION DOLLAR NET WORTH IS ABOUT THREE YEARS
AND FOUR MONTHS. AND 12 — HE DID AND 12 TRADING
DAY SO FAR FASTER THAN THE AVERAGE PERSON. >> I’M SURE YOU’RE ON THIS ONE
AS WELL. APPRECIATE YOUR TIME FOR A
THANK YOU. LET’S TALK ABOUT U.S. DISTRICT JUDGE WHO’S JUST RULED
ANTHROPIC’S USE OF MILLIONS OF BOOKS WITHOUT PAYMENT TO TRAIN
ITS MODELS WAS LEGAL UNDER COPYRIGHT LAW.
FALLING UNDER THE FAIR USE DOCTRINE A MOVE THAT COULD
ACTUALLY CRIPPLE RIGHTS HOLDER’S TO MONETIZE ON AI.
LET’S GET DAVE, A FASCINATING READ AND YOU’RE GOING TO THE
INTRICACIES OF HOW ANTHROPIC FIRST OF ALL DID IT AND THEY
DID IT PERHAPS WITH A MIXTURE OF PIRATED BOOK COPIES BUT THEN
THEY STARTED BUYING PHYSICAL BOOKS TAKING OUT THE SPINE AND
COPYING THEM INTO THE COMPUTER. >> THEY ACQUIRED MORE THAN 7
MILLION BOOKS TRAINING FOR THEIR MODELS AFTER A SHORT
WHILE THE THOUGHT THEY MIGHT BE A BETTER WAY TO DO THIS, THE
SPOT PHYSICAL USED COPIES FROM DISTRIBUTOR’S OF USED BOOKS AND
STARTED CHOPPING OFF THE SPINES COVERING UP THE PAGES AND
INGESTING THEM INTO THEIR RESEARCH LANGUAGE WHICH WAS
THEN USED TO TRAIN THE LARGE LANGUAGE MODEL.
AND THEY WERE SUED BY THREE AUTHORS WHOSE BOOKS WERE IN THE
PIRATED COPIES AND THE PHYSICAL COPIES AS WELL.
AND THEY SAID YOU ARE DOING THIS TO CREATE A MODEL AND WE
GET NO COMPENSATION FOR THAT. SHOULDN’T THIS — THE SHOULDN’T
BE CONSIDERED FAIR USE WHICH IS THIS CARVEOUT IN COPYRIGHT LAW
THAT SAYS IF WHAT YOU DO A SUFFICIENTLY TRANSFORMATIVE AND
DOESN’T HARM THE COMMERCIAL PROSPECTS OF THE ORIGINAL WORK
THEN YOU ARE FINE TO USE IT IN SOMETHING.
AND THE JUDGE IN THIS CASE IT WAS ONE OF A NUMBER OF AI CASES
LIKE THIS CURRENTLY ACTIVE. THE JUDGE SAID HE THINKS THIS
IS FAIR USE IN THIS INSTANCE. ED:
THE MAIN RESPONSE OF THE TIME WAS AN APPEAL IS LIKELY. BUT INTERESTING WHAT YOU SAY
IT’S NOT THE ONLY THING HAPPENING IN ISOLATION.
PEOPLE ARE TRYING TO GET THE READTHROUGH TO OTHERS LIKE META
FOR EXAMPLE. AND WORK OUT WHAT HAPPENS NEXT
PREYED ON THE FACE OF IT IT’S GOOD FOR GENERATIVE AI BUT THE
COMPANIES WILL STRUGGLE TO NAVIGATE THIS. >> IF IT IS FAIR USE THEN
COMPANIES ARE FREE TO INGEST ALL THIS INFORMATION WITHOUT
PAYING ANYBODY AND DO WHAT THEY WANT.
THE AI INDUSTRY IS INCREDIBLY CLEAR ON THAT. MANY THINK THAT IS THE CASE AS
WELL. THE DANGER IS AI IS UNLIKELY —
UNLIKE ANYTHING WE’VE SEEN BEFORE IN TERMS OF FINDING
KNOWLEDGE AND READING NEW INFORMATION.
AND WHAT IF AND THIS IS THE SORT OF DOOMSDAY SCENARIO FOR
PUBLISHERS WHAT IF PEOPLE STOP BUYING BOOKS BECAUSE THEY CAN
JUST GET THE INFORMATION THEY NEED FROM AI AND WHERE IS THE
INCENTIVE FOR PEOPLE TO WRITE NEW BOOKS IF WHEN THEY DO THEY
JUST GET SUCKED UP INTO THE MACHINE AND THEY DON’T SEE ANY
SORT OF COMMERCIAL BENEFIT. IS ABLE TO SUSTAIN THE PROCTOR
— PRACTICE. >> DAVE LEO BLOOMBERG OPINION
THANK YOU VERY MUCH. COMING UP GLOBAL TENSIONS FUEL
A SURGE IN DEFENSE TECH SPENDING AND INVESTMENT.
WE HAVE MORE ON THAT SUBJECT NEXT. THIS IS BLOOMBERG TECH. ♪ ED: WELCOME BACK.
SOME BREAKING NEWS I’VE JUST REPORTED WITH BLOOMBERG’S THAT
OMI AFSHAR WHO IS A KEY LIEUTENANT AND HAS BEEN A KEY
LIEUTENANT OF ELON MUSK AT TESLA HAS LEFT THE COMPANY IN
RECENT DAYS. THIS IS SOMEBODY WHO WAS IN
CHARGE OF MANUFACTURING AND SALES FOR NORTH AMERICA AND
EUROPE AND WHAT SOURCES ARE TELLING US IS HE HAS LEFT AND
IS NO LONGER IN THE DIRECTORY AT TESLA.
THERE’S A LOT WE DON’T KNOW. I’VE EMAILED ELON MUSK TO ASK
HIM WHAT’S GOING ON AND WHY THEY LEFT THE COMPANY.
YOU’LL REMEMBER WE DID SOME REPORTING ON HIM IN THE PAST
AND ASKED ABOUT SOME REPORTING THAT HE’S BEEN INVOLVED IN
ABOUT INTERNAL AUDITS AND INTERNAL REVIEWS.
IT’S ONE OF MANY RECENT DEPARTURES FROM TESLA IN THE
MARKET PAYING ATTENTION WITH A MOVE LOWER. >> IT WAS LAST YEAR HE WAS
PROMOTED INTO THE OFFICE OF THE CEO AND HE WAS OVERSEEING SOME
SIGNIFICANT AREAS OF SALES AND MANUFACTURING IN SOME PAIN
POINT AREAS LARGELY BECAUSE THE POLITICAL BACKLASH TO ELON MUSK.
ED: HE HAD BEEN IN THE OFFICE FOR
QUITE A WHILE. HE WAS KIND OF LIGHT ELON
MUSK’S CHIEF OF STAFF SO TO SPEAK BUT HE GOT MORE
RESPONSIBILITY AND WAS VERY KEY ON GETTING AUSTIN SET UP, I AM
INTERESTED TO KNOW WHAT HAPPENED.
IT IS ONE OF SEVERAL DEPARTURES IN RECENT MONTHS OF PEOPLE THAT
ARE LONG-STANDING IN A TIME WHEN ELON WAS ELSEWHERE.
CAROLINE: ELSEWHERE POLITICALLY AND THE
SALES FOCUS HAS GONE ELSEWHERE. THINKING ABOUT TODAY’S
EXTRAORDINARY NUMBERS AROUND THE LATEST SUV GOING STRAIGHT
FOR THE TESLA BUYER THIS IS REALLY A DIFFICULT MOMENT FOR
ELON NO WONDER HE’S CUT BACK A CEO. >> THE BIG PICTURE IS TESLA IN
THE FUTURES FOCUS ON ROBOTAXI WITH A SUCCESSFUL LAUNCH AT A
SMALL REDUCED SERVICE IN OPTIMUM — IN AUSTIN.
BUT THE BREAD-AND-BUTTER IS STILL SELLING CARS.
A LOT OF DATA IN ALL MARKETS AND HIS ASSOCIATION WITH THE
ADMINISTRATION WAS HURTING SALES ALSO COMPETITION WITH
HYBRIDS INCREASED COMPETITION FROM OTHER METAL PROVIDERS AND
OTHER NAME BRANDS IN EUROPE BUT IN THEIR TASTE AGAIN — TO
AGAIN RECAP SOURCES TELL US HE’S LEFT THE COMPANY.
SO CLOSE TO ELON MUSK WITH A LOT OF RESPONSIBILITY.
IT’S ONE IN A CHANGE OF HYPE — CHAIN OF HIGH-PROFILE
EXECUTIVES. LEADING THE PROGRAM WHEN WE GET
MORE WE WILL KEEP AN ION IT. I’M ALSO LOOKING AT PALANTIR,
THIS IS STOCK THAT SUB 300% YEAR-TO-DATE UP 90% ONE OF THE
BEST PERFORMERS, IT IS PERFORMANCE AS A COMPANY IN
QUARTERLY EARNINGS BUT THIS MACRO GEOPOLITICAL ENVIRONMENT
WE ARE IN RIGHT NOW SPEAKS TO THE CORE OF THIS STORY AND THIS
EMPHASIS ON DEFENSE TECHNOLOGY IS WHAT WE’RE HEARING ABOUT ON
A WEEKLY BASIS. CAROLINE: IT IS BECAUSE OF THE
GEOPOLITICS WE CURRENTLY CONFRONT.
TO CONFLICTS IN EUROPE AND THE MIDDLE EAST. GEOPOLITICAL
PRESSURES THEY ARE DRIVING A NEW WAVE OF DEFENSE INNOVATION.
LET’S TALK ABOUT WHAT THAT MEANS FOR THE MARKETS. YOU YOURSELF HAVE A RICH
HISTORY IN DEFENSE FROM AN ACTIVE SERVICE PERSPECTIVE.
I’M INTERESTED IN WHAT THE ACTIVE INNOVATION PLAY IS.
HOW DO YOU INVEST INTO THIS MOMENT? >> IT IS FRAGMENTED RIGHT NOW.
PALANTIR IS OBVIOUSLY THE PUREST PLAY AND IF YOU LOOK AT
THE LATEST CONFLICTS COMING OUT OF ISRAEL AND IRAN AND ALSO YOU
— UKRAINE AND RUSSIA THESE ADVANCED TECHNOLOGIES BEING
USED ARE GIVING ISRAEL AND UKRAINE A HEADS UP AS IT
RELATES TO THEIR ADVERSARIES PAID THAT’S NUMBER ONE.
JUST RECENTLY WITH NATO INCREASING THEIR BUDGETS UP TO
5% GDP, THE DEFENSE SPEND AS WELL AS THE U.S.
WITH THE BIG BEAUTIFUL BILL IS STRAIGHT UP.
SO YOU ARE GOING TO SEE THIS PIVOT TO GENAI BEING EMBEDDED IN ALL WEAPONS SYSTEMS. AND YOU
KNOW RIGHT NOW GENAI IS A NATIONAL SECURITY DISCUSSION.
IF YOU LOOK AT PALANTIR, THEY ARE THE FIRST MOVER AND THERE’S
A FEW ISSUES ON THE REASON WHY THEY SIGNED ISRAEL, THEY SIGNED
UKRAINE, THEY SIGNED NATO. POST DOGE ALSO THEIR SOLUTION
TO ALL THE FEDERAL AGENCY PROBLEMS. ALSO A DOD SPENDING,
SO THEY ARE ONE OF THE PUREST PRODUCTION READY GENAI
SOLUTIONS WHERE THEY CAN AGGREGATE, I WISH I HAD THEM
WHEN I FLEW. ALL THIS UNBELIEVABLE INTEL
DATA . YOU CAN SEE IN REAL TIME. >> LIKE THE MAG 7 IN MANY WAYS
IT’S A VERY CONCENTRATED DEFENSE TECH PLAY.
THEY ARE UP AT A RECORD HIGH FOR PALANTIR IT’S BEEN AN
EXTRAORDINARY UP INTO THE RIGHT MOVE FOR THE STOCK.
WHERE ELSE IF YOU’RE LOOKING FOR DIVERSIFICATION CAN YOU GO? >> RECENTLY WE HAD A REPORT ON
AV AV. THEY JUST BOUGHT A REAL STUNNING PRIVATE COMPANY CALLED
BLUE HALO WHICH GETS AERO ENVIRONMENT AWAY FROM THE
SWITCHBLADE DEVICES ON THE DRONE SIDE.
BUT WHAT BLUE HALO GIVES THEM IS AN ENTRY INTO CYBERSECURITY
SATELLITE AND HIGH ENERGY WEAPONS. THAT IS ANOTHER PLAY. UNFORTUNATELY FROM THE PRIVATE
PERSPECTIVE I KNOW YOU’VE TALKED ABOUT AND DRILL AND
OTHER SHOWS, IT’S A PRIVATE COMPANY THAT IS A MISTAKE CASE
STUDY IN HOW THE U.S. MILITARY IS RE-ARCHITECTING
THEIR DEFENSE BUDGETS. THESE ARE HIGH ROI SEE DEVICES
THAT REALLY GO AGAINST A TRADITIONAL SPEND A BILLION
DOLLAR PROGRAMS UNDER BUDGET. AND REALLY CHANGING THE RULES
OF THE GAME. >> TED WHAT YOU JUST SAID
TRADITIONAL SPEND, WHEN I LOOK AT COMPANIES LIKE PALANTIR AND
HOW THEY BEHAVE, THEY DO BEHAVE LIKE TRADITIONAL PRIMES BIG
CONTRACT MANUFACTURERS TO THE GOVERNMENT.
THEY BASICALLY SAY I SERVE THE U.S. AND ITS ALLIES ONLY.
HOW DOES IT HELP THEM? >> IF YOU LOOK AT THE
TRADITIONAL PRIMES LIKE LOCKEY OR RAYTHEON.
THEY ARE KNOWN FOR HARD WORK THEY ARE NOT KNOWN FOR GENAI
SOFTWARE. THIS IS WHY PALANTIR IS BEING
BROUGHT IN AS A PSEUDO-PRIME AND ALMOST ALL THESE NEW
NEXT-GENERATION DEFENSE CONTRACTS THEY ARE THE SOFTWARE
PLAY OR, THE OTHER ASPECT OF THIS, WHEN YOU LOOK AT THE
SPEND , YOU LOOK AT WHAT DRONE TECHNOLOGY AND I THINK IN THE
FUTURE WHEN YOU LOOK AT THIS I WOULD NOT BE SURPRISED IF YOU
HAVE THOSE SELF DRONES FLYING ON EACH WING OF AN F-35.
THAT CHANGES THE RULES OF THE GAME.
WHEN WE TALK ABOUT BOOTS ON THE GROUND WE TALKED ABOUT TESLA
EARLY, I THINK YOU ARE GOING TO SEE MACHINES ON THE GROUND AND
THE NEXT FIVE TO 10 YEARS AND THAT’S A PARADIGM SHIFT FROM
THE DEFENSE BUDGET STANDPOINT. >> TED MORTENSEN OF BAIRD GREAT
CONVERSATION THANK YOU VERY MUCH. STICKING WITH DEFENSE TECH
AMONG THE CONFLICTING ASSESSMENTS FROM WASHINGTON
ABOUT THE EFFECTIVENESS OF U.S. STRIKES ON IRAN.
LET’S BEGIN TO SUPPLY CHAIN RESILIENCE AIMS TO MODERNIZE
U.S. COMMERCIAL AND GOVERNMENT DATA.
DEFENSE ACQUISITION FOR CUSTOMERS INCLUDES THE U.S.
ARMY AND NAVY. CAVITE CEO. THERE IS ANYWAY WE COULD TAKE
THIS LET’S START WITH THE BASICS, THE U.S.
GOVERNMENT AND ITS MILITARY-INDUSTRIAL COMPLEX OR
THE DEFENSE INDUSTRIAL BASE, HOW MODERN IS IT IN THE SCHEME
OF EVERYTHING THAT WE JUST DISCUSSED ON THE SHOW? >> IT IS GETTING MORE MODERN I
WOULD SAY. THE REALITY IS TODAY IN THE
DEFENSE INDUSTRIAL BASE IS STILL QUITE TRADITIONAL AND YOU
CAN LOOK AT THE RECENT STRIKES ON IRAN AS A PERFECT EXAMPLE OF
THAT. YES WE KNOW FIFTH GENERATION
FIGHTERS ESCORTED B-2 BOMBERS TO IRAN TO DROP THE BOMBS. THEY ARE LIKELY SOME F-22’S AND
THERE IS AS WELL. THOSE JETS AND THE B-2 BOMBERS
WERE OPERATIONALLY DEPLOYED FIRST IN 1997 SO A LOT OF
AMERICAN MILITARY CAPABILITY IS QUITE OLD. CAROLINE:
QUITE OLD AND I’M LOOKING AT WHAT THE DOD $961 BILLION
BUDGET FOR THE FISCAL YEAR STARTING IN OCTOBER THE FIRST
LOOKS LIKE. I’M SURE YOU READ THE 75 PAID
PROCUREMENT REQUEST AT THE MOMENT BUT IT WAS 5 BILLION
SPENT ON B 21 SELF BOMBER PRODUCTION. THAD MISSILES, 24 AIR FORCE
F-35 STRAIGHT WHEN YOU GO THROUGH THAT REPORT IS THERE
ENOUGH OF THE NEW TECH THAT WE ARE TALKING ABOUT THE SUPPLY
CHAIN? >> THERE IS DEFINITELY STILL
NOT ENOUGH. THIS IS ONE OF THE MAJOR
IMPERATIVES FOR U.S. NATIONAL SECURITY IS THE NEED
FOR MODERNIZING THESE WEAPON SYSTEMS AND PLATFORMS. THESE
MAJOR CAPABILITIES. THIS IS WHAT SO MUCH OF THE
DEFENSE TECH INDUSTRY THE COMPANIES THAT YOU WERE
REFERRING TO, HAVE BEEN CLAMORING FOR IN WASHINGTON DC
WHICH IS THE DEPARTMENT IS SPENDING HUGE AMOUNTS OF MONEY
TRYING TO SUSTAIN THESE LEGACY PLATFORMS MORE THAN 70% OF THE
ENTIRE COST OF A JET FOR EXAMPLE OR A SUBMARINE IS SPENT
DURING ITS SUSTAINMENT PHASE. THE U.S.
NEEDS MODERN CAPABILITIES NOT JUST TO EFFECTIVELY FIGHT WAR
BUT IN ORDER TO BE ABLE TO AFFORD THE WARS WE NEED TO
DETER AND WIN. CAROLINE: YOU JUST SAID YOU ARE GOING TO
THE ADMINISTRATION GOING INTO GOVERNMENT LOBBYING SAYING THIS
NEEDS TO CHANGE. TALK ABOUT THE DATA YOU ARE
ABLE TO PROVIDE. IT’S FASCINATING, THE DEFENSE
ACQUISITION SOFTWARE PLATFORM. WHAT DOES THAT TELL YOU OR SHOW?
>> IT SHOWS QUITE A BIT. DEFENSE ACQUISITION SOFTWARE IS
REALLY DESIGNED TO REPLACE AN INCREDIBLE MANUAL PROCESSES
THAT THE DEPARTMENT USES TO MOVE TO THE LIFECYCLES OF THESE
WEAPONS AND PLATFORMS. CRADLE-TO-GRAVE HOW YOU DESIGN
THESE SYSTEMS THROUGH THEIR SUSTAINMENT.
MANAGING PARTS AND MANAGING SUPPLIERS, TODAY SOMEWHAT
UNBELIEVABLY THE U.S. DOD DOES THAT PRIMARILY IN
SPREADSHEETS A LOT OF PEOPLE ARE INVOLVED IN WHAT ARE VERY
SLOW PROCESSES. AND SOFTWARE ESPECIALLY AI
DRIVEN SOFTWARE LIKE ARC AND BE ACCELERATING THOSE PROCESSES.
THE OTHER IMPORTANT PIECE IS THE INTEGRATED DATA SET THAT
EXISTS IN THE SOFTWARE AND THIS IS GIVING THESE PROPRIETARY
DATA SET WHICH GIVES DOD VISIBILITY INTO THESE GLOBAL
SUPPLY CHAINS DOWN TO THE PART LEVEL, DOWN TO RAW MATERIALS
AND IT’S ESSENTIAL IN ORDER TO COME UP WITH THE MODERN KINDS
OF SYSTEMS WE NEED AND MAKE THEM AVAILABLE FOR THE WAR
FIGHTER. ED: REALLY QUICK WE HAVE 30 SECONDS
ON THE OTHER SIDE OF THE TABLE IS THIS GOVERNMENT AND PENTAGON
BETTER ON THE PROCUREMENT SIDE? TARA: IT IS TRYING TO BE.
WE’VE SEEN EXECUTIVE ORDERS ON DEFENSE ACQUISITION, WE SEEM
CALLS TO ENFORCE THE FEDERAL ACQUISITION STREAMLINING ACT
WHICH MANDATES GOVERNMENT AGENCIES BY COMMERCIAL FIRST
ESPECIALLY SOFTWARE INSTEAD OF TAKING ON FAILED I.T.
DEVELOPMENT PROJECTS. WHAT WE NEED TO SEE IS WILL
THOSE POLICY DECISIONS, WILL THAT GUIDANCE BE IMPLEMENTED.
IF IT CAN HAPPEN WE WILL SEE TREMENDOUSLY POSITIVE RESULTS.
CAROLINE: WE THANK YOU. FASCINATING ON ALL THINGS
DEFENSE PROCUREMENT. COMING UP WE WILL TALK TO THE
CEO BEHIND AI HACKING TOOL. THE LEAD INVESTOR JOINING US
ABOUT THE PROACTIVE DEFENSE AGAINST CYBERATTACKS.
THIS IS BLOOMBERG TECH. ♪ >> A ONE-YEAR-OLD STARTUP HAS
DEVELOPED AN AI TOOL THAT’S BETTER AT IDENTIFYING ANY
SOFTWARE VULNERABILITIES AND EXPERIENCED HACKERS. THE STARTUP RECENTLY CLOSED A
$75 MILLION FUNDING ROUND. THE FOUNDER AND CEO IS WITH US.
ALTIMETER PARTNER IS ALSO WITH US AS WELL. I’LL START WITH YOU.
WHY’S IS IT SO IMPORTANT THAT YOU THE AI VERSION OF THE
HACKER IS AT THE TOP OF THE LEADERBOARD. >> THANK YOU FOR HAVING US.
IT’S THE FIRST TIME EVER THAT A MACHINE AND NOT A HUMAN IS AT
THE TOP OF THE LEADERBOARD FOR THE U.S..
IT’S A PLATFORM THAT CONNECTS HACKERS WITH COMPANIES WHO WANT
THEIR SYSTEMS TO BE TESTED. AND THEY MAY TAKE — RANKING
THE HACKERS ACCORDING TO WHOSE BUGS HAVE BEEN ACCEPTED BY THE
CUSTOMERS. CURRENTLY THE TOP IN THE U.S.
IS POWER AI. >> WHAT’S SO INTERESTING IS YOU
ARE THE AI GUY. AMONG MANY BUT YOU ARE REALLY
DRIVING THE PORTFOLIO ALLOCATIONS FOR AI AT ALTIMETER.
SOME OF THE AI INVESTMENTS. WE SEE SUCH PEDIGREE COMING
FROM A MAN WHO HELPED DEVELOP GITHUB.
IS THAT WHAT ATTRACTED YOU TO EXPO OR THE FACT TO WHAT IT CAN
ACHIEVE? >> BEFORE WE EVEN MET WE HAD
BEEN STUDYING THIS SPACE AND VERY SIMPLY CYBERATTACKS WERE
ON THE RISE. A LOT MORE ENGINEERS A LOT MORE
CODEVELOPED WITH AI. AND THESE MODELS TRADE ON
OPEN-SOURCE SOFTWARE WHICH IS MORE VULNERABLE.
THAT’S ON ONE SIDE. OUR FIRST MEETING FELT LIKE THE
FIFTH MEETING BECAUSE OF HIS AMBITION TO BUILD A
CYBERSECURITY PLATFORM IN THE AGE OF AI. THE CIOS WANT LESS NOT MORE
THEIR FATIGUED AND WHO HAS VISION TO BUILD, HELPING YOU TO
FIND VULNERABILITIES AND FIX THEM AUTOMATICALLY.
ULTIMATELY BUILDING THE CYBERSECURITY PLATFORM IS A BIG
ONE IS PROBABLY THE MOST IMPORTANT BUSINESS BEING BUILT
RIGHT NOW. BECAUSE IT MUST BE BUILT.
IF WE DON’T BUILD IT THEY HAVE THE TECHNOLOGY.
AND WE HAVE TO PUT IT IN THE HANDS OF THE GOOD GUYS. ED: I’VE BEEN TRYING TO THINK ABOUT
WHAT THIS REPRESENTS, THE SWARM IS ALWAYS ON.
IT REPRESENTS WHAT AN ARMY OF HUMANS COULD DO 20 TO IDENTIFY
THE VULNERABILITY BUT THE QUESTION IS WHAT HAPPENS NEXT
FOR YOUR COMPANY AND I’M ASSUMING YOU ARE TRYING TO
ENGINEER TOWARDS THE SWARM ALSO REACTING PUTTING INTO PLACE
FIXES WHEN THOSE VULNERABILITIES IDENTIFIED? >> THAT’S RIGHT. EVEN TODAY THE AI IS ALREADY
IDENTIFYING VULNERABILITIES AT SOME OF THE TOP COMPANIES IN
THE COUNTRY. COMPANIES LIKE PALO ALTO
NETWORKS, AT&T, DISNEY, SONY, THE LIST GOES ON AND ON.
NOW OF COURSE IT FINDS THESE VULNERABILITIES.
THEY NEED TO BE FIXED AS WELL. WE ARE VERY LUCKY IN THAT ALL
THESE COMPANIES WE ARE WORKING WITH HAVE BEEN CREDIBLY
PROACTIVE IMMEDIATE LEASE FIXING THE PROBLEMS AS THEY
WERE POINTED OUT. IT’S THE NATURAL EVOLUTION BUT
EVENTUALLY AI WILL BE ABLE TO DO SOME OF THE FIXES AS WELL. >> I KNOW YOU AS AN OPERATOR
YOU ARE PRETTY HANDY WITH SOFTWARE, WHAT ARE YOU GOING TO
HAVE THIS SCALE WHAT ARE THEY GOT A FOCUS ON TO CONVINCE THE
MARKETPLACE THAT AN AI SWARM IS A BETTER SOLUTION THAN A HUMAN
TEAM OF HACKERS? >> WE ARE FIGHTING AGAINST TIME.
TIME IS OUR BIGGEST COMPETITION REALLY.
IF YOU HAD THREE WEEKS AHEAD OF THE BAD GUYS, YOU ARE SAVING
THREE WEEKS WORTH OF VULNERABILITIES.
CYBER TENDS TO BE A GAME OF CAT AND MOUSE SOMETIMES YOU HAVE
THE OFFENSIVE TEAMS AHEAD AND OTHER TIMES YOU HAVE THE
DEFENSIVE TEAMS AHEAD SO THE NUMBER ONE THING WE ARE FOCUSED
ON IS SPEED. THAT’S WHY WE ARE HERE TODAY
WITH ALL WE ARE DOING WE WORK WITH A LOT OF COMPANIES AS WE
MENTIONED HELPING THEM SECURE FOR THE DEAF BEFORE THE BAD
GUYS GET IN. >> WHAT’S SO INTERESTING IS
WHEN ED CALLS YOU AN OPERATOR YOU CAME FROM PALANTIR YOU
LEADING THE CHARGE YOU LOOK AT THE VEST — THE OPPORTUNITIES.
WE ALSO THINK ABOUT THE LIEN, WHEN YOU THINK ABOUT THIS
MOMENT YOU’RE ALSO EXPOSED TO AND ROLES SPACEX.
IS THIS A MOMENT FOR THE CYBER CAPACITY WHETHER IT COMES IN A
HARD TECH CAPACITY. >> I THINK AT THE HIGHEST
ABSTRACTION AI IS HAVING A GREAT AT-BAT ACROSS FIELDS PAID
THIS IS DEFENSE, CYBERSECURITY, CUSTOMER SERVICE, THESE ARE
LARGE INDUSTRIES THAT ARE GOING THROUGH AND ULTIMATELY IT’S
RAISING THE CEILING FOR PERFORMANCE OF THE BEST
PROFESSIONALS IN CYBERSECURITY LIKE WHAT WE ARE DOING.
AND RAISING THE FLOOR FOR ALL THE MUNDANE TASKS, YOU HAVE DID
YOU SCANNING AND EXPLOITATION, A PART OF THAT, BUT ALSO THE
BEST HACKERS IN THE WORLD NOW ARE BETTER OFF WITH THAT IN
YOUR TOOLKIT RATHER THAN WITHOUT. >> YOU ARE GOING FROM THIS
POINT RATE LIMITED BY COMPUTER AND TOKENS.
JUST EXPLAIN THE PATHWAY FOR YOUR COMPANY AND THE
BOTTLENECKS YOU MIGHT FACE? >> CURRENTLY IT IS — WE HAVE
NO PROBLEMS WITH THE AMOUNT OF COMPUTE, IT’S NOT THAT IN TERMS
OF WE CAN EASILY SERVE CUSTOMERS IN WORKING WAY
STRAIGHT WE ARE HOWEVER VERY MUCH FOCUSED ON WORKING WITH
THE TOP COMPANIES THAT HAVE THE BIGGEST NEED FOR BETTER
SECURITY, FINANCIAL SERVICES HEALTH CARE, OF THOSE TYPES OF
INDUSTRIES. >> PARTNER AT ALTIMETER CAPITAL
WITH MORE PRINT CEO AND FOUNDER, THANK YOU BOTH VERY
MUCH. WE WILL TAKE AN EARLY LOOK AT A
CONVERSATION BETWEEN BLOOMBERG’S EMILY CHANG AND
SALESFORCE CEO MARC BENIOFF NOW COMING UP EPISODE OF THE
CIRCUIT. ♪ >> SALESFORCE IS DEVELOPING AN
AI PRODUCT LIKE CUSTOMER SERVICE WITHOUT HUMAN
SUPERVISION. MARC BENIOFF SAYS THE REACHING
90% ACCURACY PRETTY SPOKE WITH EMILY CHANG TAKE A LISTEN. >> YOU FOUNDED THE COMPANY 25
YEARS AGO. SO YOU’VE SEEN THE RISE OF
MOBILE AND SOCIAL AND THE CLOUD YOU? >> IT’S REALLY CHANGING FAST.
BECAUSE IT USED TO BE I FELT VERY ALONE AT THE TOP, BUT NOW
I JUST FINISHED WRITING THE BUSINESS PLAN FOR THIS YEAR AND
I ALWAYS DO THAT WITH SOMEONE ELSE.
I TAKE ONE OF OUR EXECUTIVES AND FOR THE LAST YEARS I’VE
ALSO FOUND A NEW PARTNER IN AI. SO I HAVE AN AI PARTNER A HUMAN
PARTNER AND IF THE THREE OF US WERE WRITING THE PLAN TOGETHER
IT’S A LITTLE LESS LONELY AT THE TOP OF AI. >> YOU SAID TODAY’S CEOS WILL
BE THE LAST TO MANAGE ALL HUMAN WORKFORCES.
WHAT DOES THIS MEAN FOR BUSINESSES? >> DIGITAL LABOR WILL BE
EVERYTHING FROM AI AGENTS TO ROBOTS AND I DO THINK TO YOUR
POINT CEOS HAVE TO MAKE SURE THEIR VALUES ARE IN THE RIGHT
PLACE AND THAT VALUES BRING VALUE. >> COULDN’T AGENT REPLACE YOU
ONE DAY? >> YOU HOPE SO?
WE ARE BECOMING MORE AUTOMATED. CAROLINE:
TO SEE THAT FULL CONVERSATION WITH MARC BENIOFF ON THE
CIRCUIT AIRING TONIGHT AT 8:00 P.M. EASTERN.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECH.
WHAT A WHIRLWIND FROM YOUR BREAKING SCOOP OF TESLA. >> A COUPLE OF DAYS OF
TESTIMONY AND NOW WE HAVE BREAKING NEWS FROM TESLA,
BASICALLY BEEN FIRED BY ELON MUSK BUT WE RECAP THAT STORY ON
THE PODCAST YOU KNOW WHERE TO FIND IT.
ON THE TERMINAL AS WELL AS ONLINE ON APPLE AND SPOTIFY AND
I HEART. FROM NEW YORK CITY AND SAN
FRANCISCO THIS IS BLOOMBERG TECH.