'Bloomberg Technology' Full Show (05/30/2023)

ANNOUNCER: FROM THE HEART OF WHERE

INNOVATION, MONEY AND POWER COLLIDE, AND SILICON VALLEY AND

BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE

AND ED LUDLOW.

CAROLINE: I'M CAROLINE HYDE A BLOOMBERG'S

WORLD HEADQUARTERS ED: IN YORK. ED:I'M

ED LUDLOW IN SAN FRANCISCO. THIS IS BLOOMBERG TECHNOLOGY.

CAROLINE: COMING UP, NVIDIA HITTING A

TRILLION DOLLARS. THE NINTH COMPANY TO HIT THAT

VALUATION. WE WILL BRING YOU ALL THINGS AI.

ED: INDUSTRY WARNING THE TECHNOLOGY

POSES THE THREAT OF EXTINCTION. GOOGLE AND OTHERS CALLING FOR

CAUTION. CAROLINE: ELON MUSK TOUCHES DOWN IN

BEIJING. WE WILL BRING YOU THE LATEST ON

HIS VISIT AS HE EMPHASIZES THE IMPORTANCE OF TIES WITH CHINA.

LET'S GET A GLOBAL LOOK ON THESE MARKETS BECAUSE THE

CHINESE ECONOMY IS STILL A KEY CONCERN FOR MANY.

THAT'S WHY WE SEE THE GOLDEN DRAGON OFF BY MORE THAN 3%.

THE NASDAQ IS YOUR OUTPERFORMER. THE TECHNOLOGY SECTOR, THE REST

OF THE WORLD IS STILL WORRYING ABOUT RECESSION RISKS AND

INFLATION.

WE ARE SEEING A BIG RALLY IN THE U.S. DEBT MARKET.

THE 10 YEAR, YIELDS COMING DOWN NINE OR 10 BASIS POINTS.

DEBT RELIEF YET TO SEAL THE DEAL, BUT SOMETHING COMING FROM

ACROSS THE AISLE. WE WILL SEE IF WE MANAGED TO

PUSH THROUGH DEFAULT. THAT AFFECTED THE CRYPTO MARKET.

IN TERMS OF BITCOIN, WE MANAGED TO RALLY, THE HIGHEST IN A

COUPLE OF MONTHS BUT WE ARE CURRENTLY TRADING FLAT ON THE

DAY.

DIVE INTO THE MICRO BECAUSE THIS IS A DAY FOR MICRO IMPACT.

ED: A LOT HAPPENING IN THE NEWS FLOW, A LOT AROUND AI.

LET'S START WITH TESLA -- ELON MUSK IS IN CHINA.

IN A STATEMENT ISSUED BY THE CHINESE GOVERNMENT, ELON MUSK

IS QUOTED AS SAYING TESLA IS AGAINST THE DECOUPLING WITH

CHINA AND WILL CONTINUE TO INVEST AND GROW ITS BUSINESS IN

THAT MARKET. THE NARRATIVE BOOSTING SHARES,

BROADCOM -- UP 4.7%. BOOSTING THEIR TARGETS BECAUSE

THEY SEE IT'S A BENEFICIARY IN THE AI HYPE CYCLE PLAYING OUT

RIGHT NOW AND LET'S TALK ABOUT NVIDIA.

THE STOCK UP 5.7% AS WELL. A TRILLION MARKET CAP.

THE FIRST CHIPMAKER OR SEMICONDUCTOR NAME TO REACH A

TRILLION DOLLARS, THE NINTH STOCK EVER TO DO SO.

IT JOINS AN EXCLUSIVE CLUB ALONG AMAZON, GOOGLE AND

MICROSOFT. WE WILL SEE IF WE CAN MAINTAIN

THE CURRENT RATE -- CURRENT GAINS AS WE HEAD TOWARD THE

CLOSE. IT IS A BIG MOMENT FOR THIS

COMPANY FOUNDED ON THE WEST COAST IN 1993.

THE CEO HAS BEEN IN TAIWAN THE LAST 48 HOURS SPEAKING OFTEN

AND DRIVING MOMENTUM AROUND THOSE SHARES.

I WANT TO BRING IN IAN KING AND TALK ABOUT NVIDIA BECAUSE WE'VE

GOT PRODUCT ANNOUNCEMENTS AS WELL. WHAT HAVE WE LEARNED ABOUT

THEIR LATEST OFFERINGS? IAN: ARE YOU READY FOR THE LIST?

WE GOT A SUPER CHIP, A SUPERCOMPUTER, TO NEW DATA

CENTERS, NETWORKING FOR AI TO SPEED THINGS UP IN THE DATA

CENTER. THE LIST GOES ON AND ON IN

TERMS OF WHAT THEY ANNOUNCED THIS WEEKEND OVER THE LAST FEW

DAYS. CAROLINE:

HE SAID IT HIMSELF -- IT IS TOO MUCH AND I KNOW IT'S TOO MUCH

BUT HIS SENSE OF URGENCY, THIS MONDO WAR MENTALITY, IS IT

SOMETHING ONLY A FOUNDER-LED BUSINESS CAN DO IN THE CHIP

MARKET? ARE WE SEEING OTHER ANNOUNCEMENTS IN THIS RESPECT?

IAN: WE ARE SEEING PLENTY OF ROADMAPS AND ANNOUNCEMENTS BUT

NOTHING LIKE THE INTENSITY BEING SHOWN BY THIS COMPANY.

WE ARE AT THE BEGINNING STAGES. IF YOU BELIEVE NVIDIA, WE ARE

AT THE BEGINNING STAGES. THERE ARE A LOT OF TECHNICAL

ISSUES AND FUNDAMENTAL DESIGN ISSUES THAT NEED TO BE SOLVED

IN ORDER FOR THIS TO MOVE FORWARD.

THE COMPANY THAT IS ADDRESSING THESE THAT IS ACTUALLY SAYING

THIS IS WHAT WE ARE GOING TO DO, THAT IS NVIDIA RIGHT NOW.

CAROLINE: WHEN I TURNED ON MY TERMINAL,

EVERYTHING WAS COMING OUT FROM TAIPEI OVER THE WEEKEND.

YOU SAW QUALCOMM TRYING TO BE IN ON THE GAME AND SOME THE

OTHER ANNOUNCEMENTS POURING IN FROM THIS IMPORTANT MEET UP

THAT SEEMS TO BE HAPPENING. ED:

HE'S CLEARLY TAKING ADVANTAGE OF THE GATHERING OF MINDS.

HE'S KIND OF THIS ROCKSTAR FIGURE, LEATHER JACKET-CLAD

WITH HIS SPECKS ON THE STAGE. CAROLINE:

REMEMBER THE NVIDIA TATTOO? ED: HOW MUCH HAS THE STORY CHANGED,

THE DAYS OF ELON MUSK BEING THE ROCKSTAR ARE OVER.

HE WAS BORN IN TAIWAN COME EDUCATED ON THE WEST COAST AND

IS CENTRAL TO THE STORY AND HIS OWN WEALTH HAS BALLOONED. IAN:

HE LEFT TAIWAN WHEN HE WAS FOUR YEARS OLD AND FOUNDED THIS

COMPANY AND STILL RUNS IT. AS CAROLINE SAID, IT IS HIM.

HE STILL RUNS IT DAY TODAY, EVERYTHING REVOLVES AROUND HIM

AND THAT THEY COMPANY THAT LIVES OR DIES IN TERMS OF THE

DIRECTION THE CEO GIVES THEM. CAROLINE:

THERE IS NEWS FLOW FROM GLOBAL, NOT JUST CHIPMAKERS BUT CHIP

DESIGNERS.

GET US UP TO SPEED AS FAR AS THE TINY BIT OF OXYGEN LEFT.

IAN: QUALCOMM WAS TALKING ABOUT MOBILE-RELATED.

ONE OF THE THINGS QUALCOMM IS SAYING IS YOU CAN'T DO THIS ALL

OVER WIRELESS, OVER THE INTERNET BECAUSE DATA CENTERS

ARE TOO FAR AWAY. IF YOU WANT THAT INSTANT

RESPONSE, IF YOU WANT CHATGPT TO TELL YOU SOMETHING

MEANINGFUL, YOU NEED A PHONE CAPABLE OF DOING IT.

THERE'S A LOT GOING ON AND A LOT OF OPPORTUNITIES IF YOU

BELIEVE HYPE. CAROLINE:

LET'S DIG INTO THE HYPERTEXT. IAN KING, THANK YOU SO MUCH,

GIVING US A HEALTHY DOSE OF WHAT IS REALITY AND WHAT ISN'T.

LET'S LOOK AT THE ULTIMATE OPPORTUNITY HERE.

A 3.4 BILLION DOLLARS UNDER MANAGEMENT.

SOMEONE WHO HAS BEEN THINKING OF DECADES OF AI AND I'M

INTERESTED IN YOUR PERSPECTIVE AS TO WHETHER NVIDIA IS THE

PICKS AND SHOVELS YOU WANT TO BE IN.

THEY'VE BEEN IT FOR CRYPTO, FOR GAMING, IS NVIDIA THE PLACE TO

BE WHEN YOU WANT TO BE AT THE GROUND LEVEL FOR AI?

>> THAT'S A GREAT QUESTION AND THANK YOU FOR HAVING ME ON.

ON ONE HAND, NVIDIA HAS THE PICKS AND SHOVELS AND THEY ARE

ACTUALLY GENERATING APPLICATIONS BEING USED AT

ENTERPRISE CURRENTLY, SO THEY ARE NOT JUST CHIPS ANYMORE

WHICH IS MAKING THEIR OWN SELF-FULFILLING SUPER CYCLE FOR

THEMSELVES.

CAROLINE: DIG INTO THE SUPERCOMPUTER

ELEMENT OF ALL OF THIS. ZENO:

THEY HAVE THEIR OMNI VERSE WHERE THEY ARE TRYING TO

SIMULATE REALITY ACROSS -- IT CAN BE USED FOR MANUFACTURING,

FOR PROTEINS, HELPING SIMULATE PHYSICS AND EMPOWERING OTHER

COMPANIES TO DO THAT WHICH IS VERY FUNDAMENTAL TO IMPROVING

ANY TYPE OF DESIGN, ANY TYPE OF PHYSICAL INTERACTION.

NOT JUST AS DIGITAL BACK END AND LANGUAGE PEOPLE ARE EXCITED

ABOUT. THERE ARE OTHER ECOSYSTEMS THAT

THEY ARE GOING TO BE EMPOWERING ALONG OTHER PLAYERS IN THE

ECOSYSTEM IN BOTH INFRASTRUCTURE AND COMPANIES

THAT SPECIALIZE IN THOSE AREAS SUCH AS PHYSICS DESIGNS, ETC..

CAROLINE: WHAT IS FASCINATING AMID ALL OF

THIS IS YES, THERE IS A APPLICATION, REAL TANGIBLE

NEED, YOU AND I PLAY WITH THAT ON A DAILY BASIS BUT YOU CAN

GET AWAY FROM THE FACT THAT THIS IS A $600 BILLION OVER

MARKET AND WE NOW HAVE A TRILLION COMPANY. ED:

IT IS A VALUATION QUESTION. THE WHOLE POINT IS TO GIVE

INVESTORS DIFFERENT INDEX AND RESEARCH SOME EXPOSURE TO

DEVELOPMENT IN AI. IT IS A STOCK TRADING AROUND

200 TIMES FORWARD EARNINGS. ZENO:

IT'S A GOOD POINT AND IT HAS RUN FAR AHEAD OF WHAT IT HAD

BEEN TRADING AT. IF YOU THINK ABOUT JUST LAST

YEAR, YOU HAD A CHIP SHORTAGE WITH THE SUPPLY CHAIN, YOU HAD

THE CHIPS ASKED -- THE CHIPS ACT PASSED, THEN YOU HAD PC'S

FALLING AND SEMI CONDUCTOR MARKET OVERALL, THE AI A

MARKET, VALUATIONS HAD REALLY DROPPED DRAMATICALLY AND NOW

THEY ARE STARTING TO PICK BACK UP. A YEAR-OVER-YEAR BASIS, IT

LOOKS A LITTLE LESS RUN UP PY. THESE COMPANIES ARE NOT TRADING

ANYWHERE NEAR NVIDIA'S LEVELS. THE THINK INDEX WHERE WE TRACK

INFRASTRUCTURE AND APPLICATIONS IS TRADING ALONG THE LINES OF

6.5 X FOR EB SALES AND 40 X PRICE-TO-EARNINGS.

THAT IS A DRAMATIC STEP UP. THEY ARE SMALLER OR NOT GETTING

THE SAME ATTENTION AND ARE WATCHING THIS DRAMATIC RUN-UP

WITH NVIDIA.

SOME OF THEM WILL APPRECIATE AND SEE THESE EARNINGS OVER

TIME.

YOU'VE GOT CLOUD, INFRASTRUCTURE, AUTOMOTIVE, AS

MORE PEOPLE DEPLOY AND UTILIZE AI NOT JUSTIN TRADING BUT IN

PRACTICE.

HAVING THIS WITH COMPUTER VISION , NOT JUST THROUGH THE

AI CLOUD WHICH WILL CONTINUE TO BE DEPLOYED BUT IT IS GOING TO

SATURATE AND DEPLOY AND EMPOWER MANY OTHER DIFFERENT PARTS OF

THE ECOSYSTEM, NOT JUST NVIDIA AND THE CHIPS.

IT IS NOT A STANDALONE UNIT IN THE ECONOMY.

IN AN ECONOMY WHERE IT'S GOING TO TAKE MORE PERCENTAGE OF GDP

AND POTENTIALLY GROW GDP. THERE COULD BE DEFLATIONARY

PRESSURE IN SOME AREAS BUT THAT IS HOW WE ARE THINKING ABOUT IT.

ED: LET'S BRING UP THE TERMINAL CHART SHOWING NVIDIA'S MARKET

CAP. YOU LOOK AT THE SPIKE ON THE

RIGHT-HAND SIDE OF THE SCREEN AND THAT IS SHOWING THAT

OUTLOOK THEY GAVE, BASICALLY GROWTH WHICH WAS 50% ABOVE WHAT

ANALYSTS WERE EXPECTING. WHAT IS THE STORY?

WHAT DID YOU LEARN FROM NVIDIA'S OUTLOOK ABOUT THE

DEMAND FOR ITS PRODUCTS RIGHT NOW? ZENO:

IT IS REALLY NOT SURPRISING. WE'VE BEEN EXPECTING MORE

DEMAND AND INTEREST TO HAPPEN FOR A WHILE, IT WAS WHEN THE

DEMAND CURVE WAS GOING TO SHIP OVER AND -- TO SHIFT OVER,

WHETHER IT WAS THOMAS VEHICLES OR GETTING AI OUT OF SUPER

ENTERPRISE RESEARCH AREAS INTO THE HANDS OF PEOPLE WHERE THEY

ARE THINKING, BUSINESS LEADERS ARE THINKING THIS ISRAEL AND WE

NEED TO FIGURE OUT HOW TO USE THIS. HEALTH CARE IN THE U.S.

IS VERY EXPENSIVE AND THE U.S. IS THINKING HOW CAN WE DEPLOY

AI TO IMPROVE HEALTH CARE OUTCOMES AND REDUCE MEDICARE

FRAUD IN THESE DIFFERENT AREAS WHERE YOU ARE SEEING ISSUES,

THIS CAN BE USED TO HELP SOLVE AND IMPROVE THE PROCESSES AND

OUTCOMES ACROSS ALL THESE DIFFERENT AREAS. CAROLINE:

WHAT IS INTERESTING IS THERE'S ONE PLAYER WHO THOUGHT AND

REALIZE NVIDIA WAS CALLED FOR MANY OTHERS AND WAS BUYING IT

IN 2014 AND MISSED THIS RALLY IN ITS CATHIE WOOD BECAUSE

SHE'S GOT CONCERNS ABOUT THE BUSINESS, ABOUT COMPETITION AND

VALUATION. LISTEN TO WHAT SHE SAID ON

FRIDAY.

>> NVIDIA HAS BECOME THE CHECK THE BOX STOCK AND THAT'S WHY

THE VALUATION IS WHERE IT IS. WE ARE LOOKING FOR THOSE PLAYS

THAT HAVE NOT ONLY THE VISION FROM THE MANAGEMENT TEAM POINT

OF VIEW AND BROAD DISTRIBUTION BUT ALSO PROPRIETARY DATA AND

AI EXPERTISE. CAROLINE: WHERE ARE YOU LOOKING FOR

OPPORTUNITIES? WHO ELSE CAN YOU BUY IN AT A

BETTER VALUATION THAT IS GOING TO WRITE THIS AI WAVE? ZENO:

THAT'S A GREAT QUESTION. I AGREE AND DISAGREE WITH HER

APPROACH. ON ONE HAND, DATA AND SOFTWARE

PLAYS ARE GREAT. IT'S NOT JUST NVIDIA.

NVIDIA IS NOT JUST HARDWARE ANYMORE.

THERE'S LOTS OF PLAYERS -- I DON'T LIKE TO DIVE INTO

SPECIFIC NAMES, BUT SAMSARA IS HELPING TO DIGITIZE FLEETS

AROUND THE WORLD. FOR UTILITIES AND MINING, MANY

SUBSECTORS. COMPANIES LIKE THAT. THERE ARE OTHER SEMI CONDUCTOR

COMPANIES.

THEY ARE TRADING 40 X OR 50 X PE.

SO THERE IS MORE PICKS AND SHOVELS IN THE ECOSYSTEM.

THERE IS CYBERSECURITY, THERE'S CLOUD AND NETWORKING COMPANIES.

DEMAND AND UTILIZATION REQUIRE

MORE STORAGE BOTH IN THE CLOUD AND ESPECIALLY AS WE GET INTO

MULTIMODAL AI. THAT'S GOING TO REQUIRE MORE

STORAGE. COMPANIES LIKE PURE STORAGE

HAVEN'T TAKEN OFF. IT'S HARD TO IMAGINE WITH THIS

UPTICK IN DEMAND THAT IS GOING TO GROW WITH THE RISING TIDE.

ED: SOMEONE THAT LEE -- THAT LIVES

AND BREATHES ARTIFICIAL INTELLIGENCE.

THANK YOU FOR YOUR TIME. COMING UP, ELON MUSK TOUCHING

DOWN IN BEIJING. WE WILL DISCUSS THE TESLA CEOS

FIRST VISIT TO THE COUNTRY SINCE THE PANDEMIC.

SHARES TRADING AT THE HIGHEST LEVEL IN AROUND TWO MONTHS.

SOME OF THE COMMENTARY COMING OUT OF THE MEETING SUGGESTING

THERE IS AN OPPORTUNITY FOR TESLA SUPPORTING THE STOCK

WHICH IS UP FOR THE THIRD STRAIGHT CONSECUTIVE SESSION.

THIS IS BLOOMBERG. ♪

>> THE COMPANY THAT GETS A PERSON IN AUTONOMOUS VEHICLE

FROM POINT A TO POINT B AS QUICKLY AND SAFELY AS POSSIBLE

IS PROBABLY GOING TO GET THE LION'S SHARE OF THE MARKET.

THAT COMPANY WILL, IN THE UNITED STATES, WE BELIEVE BE

TESLA. THAT WAS PART OF OUR INTERVIEW

WITH CATHIE WOOD DISCUSSING TESLA.

STICKING WITH THE EEEV MAKER, ELON MUSK IS IN CHINA FOR THE

FIRST TIME SINCE THE PANDEMIC WHERE HE MET WITH THE NATION'S

FOREIGN MINISTER AND EMPHASIZE THE IMPORTANCE OF MAINTAINING

TIES WITH CHINA. LET'S BRING IN CRAIG TRUDELL

FOR MORE. THIS WAS A MEETING -- BUT WHERE

THE KEY MESSAGES THAT CAME OUT OF ELON MUSK'S VISIT TO BEIJING?

>> PER YEAR INTRO, THAT WAS ONE

OF THE THINGS THAT WAS UNIVERSAL IN THIS READOUT FROM

BOTH SIDES -- AN EMPHASIS ON THE NEED FOR U.S.-CHINA

COLLABORATION AND IT'S NO WONDER THAT'S A MAJOR POINT OF

EMPHASIS ON THE PART OF THE FOREIGN MINISTRY.

GIVEN WITH WHAT HAS BEEN HAPPENING WITH CHIPS AND

ELECTRIC VEHICLE BATTERIES, YOU HAD OTHER LEADERS AND JOE BIDEN

MAKING EFFORTS TO WEAN THE GLOBAL AUTO INDUSTRY OFF THE

RELIANCE ON CHINA FOR BATTERIES. ALSO CHIPS, A BIG EMPHASIS ON

BUILDING UP SEMI CONDUCTOR SUPPLY OUTSIDE OF ASIA, WHETHER

IT'S IN THE U.S. OR GERMANY.

SOME REAL CHALLENGES ON THE PART OF WHETHER BIDEN OR OLAF

SCHOLZ, GETTING COMPANIES TO AGREE TO THIS CHANGE IN

APPROACH. CAROLINE: PRECISELY.

HE'S NOT ALONE, ELON MUSK. YOU HEARD FROM THE MERCEDES CEO

AND MARY BARRA AT GM, OTHER COMPANIES SAYING THESE TIES

NEED TO REMAIN DESPITE LEADERSHIP IN THE GOVERNMENT

THINKING OTHERWISE. CRAIG: I THINK THERE IS SOME REALISM

ON THE PART OF THESE GOVERNMENT LEADERS TALKING ABOUT

DE-RISKING AS OPPOSED TO DE-COUPLING.

I THINK THERE WILL BE THAT DEBATE AS TO WHETHER IT IS

REALISTIC TO COMPLETELY DECOUPLE THE U.S.

FROM CHINA OR GERMANY FROM CHINA. IF YOU ASK THE CEO OF HER

CITIES BENTZ, HE SAYS IT IS NOT REALISTIC.

WHETHER OR NOT IT IS POSSIBLE TO CUT THESE COMPANIES OFF FROM

THIS MARKET THAT HAS BEEN A HUGE SOURCE OF PROFITS, HUGE

SOURCE OF EXPORTS IF YOU ARE TESLA, THIS WAS SUPPOSED TO BE

A PLANT IN SHANGHAI THAT WAS GOING TO BE FOR THE DO MUST

TICK MARKET BUT IT HAS TURNED INTO THIS MASSIVE EXPORT BASE

WHERE MORE THAN HALF THE CARS THEY PRODUCED GLOBALLY CAME OUT

OF THAT PLANT IN CHINA. ED: I BELIEVE A BLOOMBERG SOURCE

HAS TOLD US ELON MUSK MAY MEET WITH THE CHINESE PREMIER ON

AUTONOMOUS DRIVING IN PARTICULAR? CRAIG:

I THINK THAT'S GOING TO BE INTERESTING TO WATCH PLAY OUT.

TO DO A RECALL THAT THEY WERE

ABLE TO ADDRESS IN CHINA, THERE'S A LOT OF ATTENTION

ANYTIME TESLA GETS INTO ANY SAFETY ISSUES IN CHINA, TO THE

EXTENT WE START TO SEE SOME OF THE THINGS, CRASHES, SOME OF

THEM FATAL, INVOLVING AUTOPILOT OR FULL SELF-DRIVING, THAT HAS

BEEN ISOLATED TO NORTH AMERICA.

ELON MUSK WANTS TO MAKE THAT MORE GLOBAL TECHNOLOGY TESLA IS

ABLE TO DEPLOY AND TO THE EXTENT THE GOVERNMENT IS

WILLING TO GO ALONG WITH THAT IS A BIG QUESTION GOING FORWARD.

CAROLINE: KEEPING IT GLOBAL FOR US ON ALL

THINGS ELON MUSK. COMING UP, TALKING CHINA SOME

MORE. LIFT OFF FROM CHINA -- HOW THE

COMPANY IS NARROWING THE GAP IN A HEAD TO HEAD SPACE RACE WITH

THE UNITED STATES. THIS IS BLOOMBERG.

♪

ED: TIME FOR TALKING TECH -- CHINA

MAKING GOOD ON ITS GOAL FOR MORE PROMINENCE IN THE GLOBAL

SPACE RACE, LUNGING MISSION JUTE SIX MISSION FROM A SPACE

CENTER TUESDAY MORNING.

THE MISSION IS SENDING THREE ASTRONAUTS TO THE CHINESE SPACE

STATION, INCLUDING THE FIRST CIVILIAN, A PROFESSOR AT

BEIJING -- A BEIJING-BASED UNIVERSITY.

IT'S PART OF THE PLAN TO HAVE A CONTINUOUS PRESENCE AT ITS

SPACE STATION. THIS SPACE STATION IS ONE OF

SEVERAL ACHIEVEMENTS CHINA HAS MADE IN RECENT YEARS AS IT

TRIES TO CATCH UP TO THE U.S. IN SPACE.

CHINA HAS ALSO LANDED A CRAFT ON THE FAR SIDE OF THE MOON,

THE ONLY COUNTRY THAT HAS MANAGED TO DO THAT.

THE NEXT BIG PROJECT IS SENDING CHINESE ASTRONAUTS TO THE MOON.

A TINY SPACE AGENCY OFFICIAL ON MONDAY SAID THE GOAL IS TO LAND

ON THE MOON WITH A CRUDE MISSION BY 2030. THE U.S.

IS ALSO WORKING TO SEND ASTRONAUTS BACK TO THE MOON.

PART OF ITS ARTEMIS PROGRAM. THE U.S.

IS SO FAR MORE SUCCESSFUL IN CHINA IN WINNING INTERNATIONAL

SUPPORT FOR ITS SPACE PLANS WITH TWO DOZEN COUNTRIES

SUPPORTING THE ARTEMIS WASHINGTON-BACKED AGREEMENT TO

REGULATE ACTIVITY ON THE MOON AND ELSEWHERE IN SPACE.

CHINA IS SEEKING MORE SPACE ALLIES AND OFFERING MORE ACCESS

TO THINGS LIKE THE SHOW AND JOE 16 LUNCH. -- LAUNCH.

ED: CHINA PLANS TO SEND ITS ASTRONAUTS TO THE MOON BY 2030.

AND SEEKING TO BUILD A LESS RISKY WORKFORCE FOR SPACE

MISSIONS, FRESH OFF RAISING $30 MILLION, THE TOKYO STARTUP SAYS

IT WILL USE THE FUNDS TO RECRUIT ENGINEERS AND FURTHER

DEVELOP ITS ROBOTS. THE ROBOTIC ARMS AND ROVERS CAN

REMOTELY PERFORM ROUTINE CONSTRUCTION WORK RANGING FROM

SOLAR PANEL INSTALLATION TO WELDING.

PLUS NOISE, THE INDIAN-BASED MAKER OF SMART WATCHERS IS IN

TALKS FOR ITS EVER FUNDRAISING ROUND.

THEY ARE HOPING TO RAISE 40 TO $50 MILLION TO GAIN MARKET IN

INDIA'S FAST-GROWING WEARABLES MARKET.

CAROLINE: COMING UP, WE'VE GOT SO MUCH

MORE TO DISCUSS. LOOK AT THE STREAMING LANDSCAPE.

IT GOT A KEY EXECUTIVE FROM YOUTUBE JOINING US IN THE NEW

YORK STUDIO. FROM NEW YORK AND SAN

FRANCISCO, WE ARE BACK TOGETHER. THIS IS BLOOMBERG. ♪

CAROLINE: WELCOME BACK TO BLOOMBERG

TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK.

ED: AND I'M ED LUDLOW IN SAN FRANCISCO.

SOME OF THE ENTHUSIASM EARLIER IN THE SESSION FUELED BY AI HAS

WORN OFF. LOOK AT THE S&P 500, KIND OF

FLAT IN THAT MAIN GAUGE. THE NASDAQ 100 UP .6%.

SOME OF THE BIG MOVERS TO THE UPSIDE ARE AI-RELATED.

KIND OF A COOL BACK IN YIELDS, SOME OF THAT AROUND HOPED WE

WILL FIND RESOLUTION IN THE U.S. DEBT CEILING NEGOTIATIONS AND A

QUICK LOOK AT BITCOIN, TRADING AROUND $27,700.

BASICALLY BACK TO WHERE WE WERE AT THE END OF MARCH, WE ARE

TRADING IN THIS RANGE BETWEEN WHEN HE 6000 OVER THE LAST TWO

OR THREE MONTHS. IN TERMS OF SINGLE NAMES,

THERE'S ONLY ONE STORY WHICH IS NVIDIA, HITTING A TRILLION

RACKET CAP, THE FIRST CHIPMAKER TO DO SO.

ONLY NINE STOCKS HAVE EVER MADE THAT MILESTONE.

IN CONTRAST WITH ALPHABET, PARENT CAN BE OF GOOGLE, OFF BY

.4%. IT HAD BEEN DOWN SIGNIFICANTLY.

THIS IS ANOTHER NAME IF YOU BRING UP HAS SEEN A RUN-UP IN

ITS SHARES FUELED BY ITS ANNOUNCEMENTS PARTICULARLY IN

THE FIELD OF AI. PARTICULARLY WHAT THEY ARE

DOING AND SOME OF THE MEDIUMS BEYOND TECH LIKE PHOTO IMAGES

AND VIDEO AS WELL.

THAT SEEMS TO BE SELLING IN INVERSE. CAROLINE:

A GREAT DAY -- GREAT SET UP BECAUSE WE WANT TO STEP WITH

THE ALPHABET -- STICK WITH THE ALPHABET FAMILY.

STREAMING IS GOING TO DISRUPT AND EMBRACE THE FIELD OF

ARTIFICIAL AND HALOGENS. JOINING US IS YOUTUBE GLOBAL

HEAD OF TV AND FILM PARTNERSHIPS.

HOW MUCH ARE YOU HAVING THIS CONVERSATION WITH THE MEDIA

PARTNERS YOU WORK WITH, WITH THOSE WITHIN YOUTUBE THINKING

HOW CAN YOU HARNESS ARTIFICIAL INTELLIGENCE TO GIVE US THE

CONTENT WE WANT? LORI: WE ARE HAVING MANY

CONVERSATIONS AROUND AI AND HOW IT CAN BE APPLIED IN THE MEDIA

SPACE AND SPORTS WORLD. WE AT YOUTUBE HAVE BEEN USING

IT FOR YEARS IN TERMS OF MATCHING CONTENT AND

RECOMMENDING CONTENT , LOOKING AT OUR ROADMAP AND HOW WE

CREATE THAT PERSONALIZATION. CONTENT PARTNERS HAVE OUR OWN

PLANS AND OBVIOUSLY ALL OF US ARE BEING RESPONSIBLE IN OUR

APPROACH BUT WE ARE EXCITED ABOUT THE POTENTIAL

APPLICATIONS. CAROLINE: ENSURING THAT BECAUSE YOU ARE

IN CONSTANT CONVERSATION WITH MEDIA PARTNERS.

WOULD YOU EVER GIVE DATA TO THEM?

HOW DO YOU THINK ABOUT HOW THE RELATIONSHIP FLOURISHES? LORI:

GOOGLE HAS VERY STRICT PRIVACY POLICIES AND WE ARE ALWAYS

ADHERING TO THOSE.

WE ARE SENSITIVE TO THAT BUT VERY OPEN TO OPTIMIZING

EXPERIENCES WITHIN THOSE FRAMEWORKS. ED:

GOOD MORNING FROM SAN FRANCISCO. WHEN I THINK ABOUT YOUTUBE, I

THINK ABOUT CONTENT CREATORS BRINGING THEIR CONTENT TO THE

PLATFORM. INCREASINGLY THE QUESTIONS WE

ARE GETTING ASKS -- ASKED IS WHAT IS GOING TO BE USED IN THE

FIELD OF AI? IS THAT SOMETHING THEY ARE

WORKING ON? LORI: WE ARE EXPLORING MANY DIFFERENT

THINGS.

WE SEE POTENTIAL WITH OUR OWN COMPANY, WITH OUR PARTNERS.

OBVIOUSLY YOUTUBE IS A COMPOSITION OF CREATOR CONTENT,

SPORTS CONTENT, MANY DIFFERENT PARTNERS THAT HAVE IDEAS AROUND

IT.

AND IT'S ULTIMATELY ABOUT THE CONSUMER AND HOW WE USE

TECHNOLOGY IN MANY DIFFERENT WAYS TO OPTIMIZE THE EXPERIENCE.

ED: WE ALWAYS WANT TO GIVE OUR AUDIENCE THE OPPORTUNITY TO ASK

QUESTIONS, SO WHEN I TWEETED YOU ARE COMING ON THE SHOW,

THERE WAS LOTS OF INTEREST ABOUT THE RECOMMENDATION ENGINE.

WHEN YOU THINK ABOUT SHORT FORM VIDEO AND LIVE EVENTS, WHAT ARE

YOU DOING AROUND THE RECOMMENDATION ENGINE DRIVEN BY

AI? LORI: A LOT OF WHAT WE DO FOR OUR

VIEWERS IS MAKE SURE EVERY TIME THEY COME TO YOUTUBE, THE

FORMAT THEY ARE INTERESTED IN WATCHING AS WELL AS THE

BUSINESS MODEL THEY WOULD LIKE TO CONSUME THAT CONTENT UNDER

IS AVAILABLE ON OUR PLATFORM. AS HAS BEEN MENTIONED, WE HAD

AD SUPPORTED VIDEO ON DEMAND, LONGFORM AND SHORT FORM SHORTS,

TRANSACTIONAL VOD, PAY TELEVISION.

WE LAUNCHED THE SUBSCRIPTION AND SUPPORTED.

IT IS ABOUT CREATING THAT ECOSYSTEM WHERE EVERY TIME THEY

COME, THEY FIND WHAT THEY WANT. OF COURSE THERE IS AN ALGORITHM

AS PEOPLE VISIT FREQUENTLY, THAT ALGORITHM IS INTERESTED IN

WHAT THEY ARE WATCHING AND THAT CONTENT WILL BE SERVED TO THEM.

CAROLINE: THAT IS WHY YOU ARE GROWING

WHEN MOST LIVE TV IS NOT GROWING.

I AM INTERESTED IN THE REASON YOU ARE GROWING, NFL SUNDAY

TICKET IN PARTICULAR. HOW ARE YOU LURING AND PEOPLE

THAT WANT TO BE WATCHING THOSE SORTS OF GAMES?

IS IT ABOUT THE RIGHT PRICE POINT? LORI:

MANY OF THOSE PEOPLE HAVE ALREADY BEEN WATCHING

HIGHLIGHTS AND CLIPS OF THE NFL AND YOUTUBE ON OUR SUPPORTED

PLATFORM.

WE'VE BEEN OFFERING SUNDAY TICKET UNDER TWO DIFFERENT

PLATFORMS. YOU CAN ALSO BUY IT THROUGH YOUTUBE TV AS AN ADD-ON.

UNDER DIRECTV'S MODEL, YOU HAD TO BE A DIRECTV SUBSCRIBER.

YOU DO NOT HAVE TO BE A YOUTUBE TV SUBSCRIBER TO PURCHASE

SUNDAY TICKET. YOU CAN DO IT FROM YOUTUBE.

CAROLINE:

THE PEOPLE WHO WANT TO GET CONTENT SURROUNDING THEY NFL,

HOW IS IT GOING TO MEET THE WORLD OF LIVE TV AND HOW YOU

BUNDLE IT?

LORI: THIS IS ONE OF THE AREAS WE ARE

MOST EXCITED ABOUT. WE RECOGNIZE CREATORS ARE

REALLY INTERESTED -- AN INTERESTING WAY TO PRESENT

SPORTS CONTENT AND TV CONTENT. WE HAVE SEEN A GREAT

OPPORTUNITY TO INTEGRATE. AT THE NFL DRAFT, WE HAD 32

CREATORS THERE. THEY ANNOUNCED ONE OF THE DRAFT

PICKS WHICH WAS WELL RECEIVED. OUR AUDIENCE IS YOUNGER THAN

OTHER PAY-TV PLATFORMS AND THOSE YOUNGER AUDIENCES WATCH

CREATORS AND IT IS AN INNOVATION THEY EMBRACE.

ED: OUR COLLEAGUES AT BLOOMBERG NEWS REPORTING OVER THE WEEKEND

THAT APPLE AND NETFLIX ARE LOOKING AT THE LONG-TERM OF NBA

RIGHTS AND ONE OF THE THINGS THEY REPORTED IS FOX, FOR

EXAMPLE, IF THEY ENTERED THE FRAY COULD BE INTERESTED IN

OFFERING A STREAM THROUGH SOMEONE ELSE'S PLATFORM.

LORI: WE ARE VERY, VERY STRONG PARTNERS.

WE HAVE CLIPS AND HIGHLIGHTS ON YOUTUBE TV WHERE WE CARRY THE

NETWORKS THAT CURRENTLY HAVE THE RIGHTS FOR THE NBA.

WE WERE THE FIRST STREAMING SERVICE TO OFFER W NBA LEAGUE

PASS AND OFFER THAT ON A SUBSCRIPTION BASIS TO CONSUMERS.

WE HAVE THAT PARTNERSHIP IN PLACE.

OBVIOUSLY, WE ARE LOOKING TO SPORTS AS WE JUST DISCUSSED

WITH NFL SUNDAY TICKET AS A WAY TO CONTINUE TO DELIVER RIGHTS

AND GAMES TO OUR VIEWERS WHO ARE VERY, VERY SPORTS-CENTERED.

AT THE SAME TIME, THERE IS TO ANNOUNCE WITH REGARDS TO RIGHTS

DISCUSSIONS WITH THE NBA BUT WE DO VALUE THEIR ORDER SHIP AND

WILL CONTINUE TO KEEP OUR SPORTS PARTNERS TOP OF MIND.

CAROLINE: THOSE MEDIA PARTNERS YOU HAVE

WORKED FOR IN YOUR LIFE, DISNEY AND NBC-UNIVERSAL.

WHAT IS INTERESTING IS -- YOU MUST HAVE WORKED WITH LINDA AT

SOME POINT. HOW DO YOU SEE THIS -- WHO WILL

WIN OUT AND CAN EVERYONE FROM AN OFFERING OF SPORTS WE WANT

TO SEE? LORI: BASICALLY, THERE'S ROOM FOR

MANY PLATFORMS. I DID WORK WITH LINDA AND SHE HAS MOVED TO

TWITTER AND THERE IS VALUE IN THE TWITTER PLATFORM, THERE'S

VALUE IN THE YOUTUBE PLATFORM AND DISNEY PLUS AND ALL OF

THESE SERVICES. WHAT I REALLY LIKE ABOUT

YOUTUBE IS WE DISTRIBUTE MANY OF THESE SERVICES AND MAKE IT

EASIER FOR CONSUMERS TO FIND THEM AND TRANSACT ON THEM.

I THINK PEOPLE ARE VERY INTERESTED IN DIFFERENT TYPES

OF CONTENT UNDER DIFFERENT BUSINESS MODELS AND WE ALWAYS

PUT THE CUSTOMER AT THE CENTER OF THE EQUATION.

IT GOES BACK TO WHAT I SAID EARLIER.

IF THEY COME TO YOUTUBE AND WANT TO WATCH ANY OF THAT

CONTENT YOU JUST MENTIONED FROM DISNEY OR NBC UNIVERSAL, WE

HAVE THAT. IF THEY WANT TO SUBSCRIBE TO A

DIRECT TO CONSUMER MODEL, WE HAVE THAT.

IF THEY WANT LINEAR, WE HAVE THAT.

THAT'S THE VALUE WE BRING TO THE MEDIA SPACE THAT DOES HAVE

A LOT OF PLAYERS WE CONSIDER TO BE GREAT PARTNERS.

CAROLINE: 5 MILLION EYEBALLS AS WELL.

THANK YOU. WE WANT TO GIVE THANKS AS WELL.

ED: THE YOUTUBE GLOBAL HEAD OF TV,

FILM AND SPORTS PARTNERSHIP. ALSO OF NOTE, HOW MANY LIVE

EVENTS HOSTED ON YOUTUBE. IF YOU THINK ABOUT EARNINGS

CALLS. COMING UP, AI'S IMPACT ON THE

FINTECH SPACE. WE WILL DISCUSS THAT AND MORE

WITH REX SALSBERRY COMING NEXT. THIS IS BLOOMBERG.

♪

ED: TODAY'S VC SPOTLIGHT, WE TAKE

A LOOK AT THE WORLD OF FINTECH. THAT'S GETTING.

PROBABLY ARTIFICIAL INTELLIGENCE.

WE WELCOME THE GENERAL PARTNER AND FOUNDER OF CAMBRIAN

VENTURES.

$20 MILLION IN ASSETS UNDER MANAGEMENT.

ALSO A FOUNDING MEMBER OF ANDREESSEN HOROWITZ'S FINTECH

TEAM BACK IN THE DAY. I SAID JUST KIDDING BUT WHETHER

YOU ARE IN FINTECH OR NOT, AI IS TOUCHING EVERYTHING RIGHT

NOW. HOW IS IT IMPACTING THE WORLD

YOU ARE OPERATING IN?

>> AI IS A BIG TREND GOING ON IN FINANCIAL SERVICES RIGHT NOW.

I WANT TO TALK ABOUT SEPARATING THE HYPE AND REALITY.

I LIKE TO THINK ABOUT AI IN FINANCIAL SERVICES AS A

PLATFORM SHIFT.

WE ARE 18 YEARS INTO THE TRANSFORMATION CLOUD HAS HAD IN

TECHNOLOGY MORE BROADLY.

CLOUD COMPUTING, 2005, THEY LAUNCHED SIMPLE STORAGE

SOLUTION, THE VERY FIRST CLOUD FORM.

FINANCIAL SERVICES, VERY SLOW TO ATTRACT CLOUD TECHNOLOGY.

LAST YEAR, JP MORGAN ANNOUNCED THEIR FIRST CLOUD COMPUTING

PARTNERSHIP. THAT'S TO SAY WE WILL SEE A LOT

OF ADOPTION OF AI WITHIN FINANCIAL SERVICES BUT IT MAY

TAKE SOME TIME. ED: LOOK AT SOME OF YOUR PORTFOLIO

COMPANIES. SOME ARE CONSUMER WHILE IT,

SOME ARE B2B PLATFORMS. WHAT IS THE VALUE PROPOSITION FROM YOUR

PERSPECTIVE? REX: BETTER SOFTWARE MORE QUICKLY

WITH FEWER RESOURCES. A LOT LIKE CLOUD DID.

YOU HAVE AS YOU DON'T HAVE TO OWN THE SERVERS ANYMORE.

YOU CAN GET A PRODUCT IN THE MARKET MORE QUICKLY.

WITH AI, YOU CAN USE BASIC TOOLS TO WRITE CODE MORE

QUICKLY. YOU CAN DO PROCESS HEAVY

WORKLOADS WHICH, ANYONE WHO HAS CLOSED A MORTGAGE, THERE ARE A

LOT OF VERY HEAVY PROCESS FLOWS WITHIN FINANCIAL SERVICES.

IT LET YOU WRITE MORE CODE MORE QUICKLY TO DO MORE THINGS AT

LOWER COST. CAROLINE: WILL IT BE MORE DEMOCRATIZING

FROM WHERE THESE ARE COMING FROM?

IS IT PURELY WEST COAST OR ARE YOU LOOKING INTERNATIONALLY?

REX: I FOCUS ON JUST THE U.S. AND SPECIALIZE PARTICULARLY IN

BUSINESS TO BUSINESS FINTECH. BUT FINTECH IS A GLOBAL

PHENOMENON AND I THINK THERE'S A TREMENDOUS AMOUNT OF EXCITING

OPPORTUNITY FOR INVESTORS GLOBALLY.

AS A SOLO GP COME I TEND TO PLAY TOWARD MY STRENGTHS IN THE

U.S. HAS A LOT OF OPPORTUNITY REMAINING.

WE ARE ONE OF THE LARGEST UNIFIED MARKETS WITH A RICH

VENTURE CAPITAL. THE BAY AREA HAS AN INCREDIBLY

DEEP SET OF NETWORKS. SOME OF THE BEST FOUNDERS AND

THE COMPANY TEND TO BE OUT HERE, THOUGH I BACK FOUNDERS

EVERYWHERE. FINTECH IS VERY MUCH A GLOBAL

PHENOMENON BUT I'M FOCUSED ON BACKING THE BEST U.S. COMPANIES.

CAROLINE: YOUR MODEL IS BASICALLY TAKING

CHECKS FROM PREVIOUS FINTECH FOUNDERS AND PUTTING IT INTO AN

OVERALL FUND TO THEN SEEK NEW IDEAS.

HOW MUCH MORE JOSTLING IS THERE IN THE VERY EARLY STAGE, THE

VERY EARLY CHECKS BEING WRITTEN AT THE MOMENT BECAUSE PEOPLE

ARE MORE WORRIED ABOUT WRITING LARGE CHECKS IN THIS ECONOMIC

ENVIRONMENT. REX: I DO FOCUS ON THE PRE-SEED AND

SEAT NOW. THAT IS A STAGE I'M VERY

EXCITED ABOUT. WE DO HAVE A BUNCH OF FOUNDERS

WHO ARE INVESTORS OR LIMITED PARTNERS IN THE FUND AND MY

GOAL IS TO PROVIDE THE FOUNDERS I SUPPORT WITH THE BEST

NETWORKS IN FINTECH.

WE HAVE FOUNDERS FROM PLACES LIKE FINTECH AND OTHERS AND

SOMETIMES THEY COME ALONG AS ANGEL INVESTORS AND OFTEN END

UP BEING ADVISORS OR EPISODICALLY ENGAGED.

LERNER OF THE COOL THINGS ABOUT THE FINTECH ECOSYSTEMS IS HOW

INTEGRATED AND NETWORKED IT IS.

YOU NEED TO HAVE PARTNERS DOING VARIOUS ASPECTS OF THE COMPLETE

SOLUTION SO HAVING AS -- HAVING ACCESS TO GREAT FOUNDERS AS ONE

OF THE KEY DIFFERENTIATORS THAT HAS THE ADVANTAGE -- THE EXTENT

TO WHICH IT IS COMPETITIVE, A LOT OF MULTISTAGE FIRMS HAVE

PULLED BACK. I TEND TO FOCUS VERY EARLY ON

AND AM INTENTIONALLY A NONLINEAR INVESTOR AND TRY TO

BE COLLABORATIVE WITH OTHER

FUNDS THAT MAY PRECEDE REALMS. ED:

HOW MUCH OF A TAILWIND REMAINS FROM SVB'S COLLAPSE? REX:

FROM A GROWTH STAGE, IT HAS BEEN A HUGE TAILWIND.

IF YOU LOOK AT DEPOSIT INFLOWS TO COMPANIES LIKE R.O.E.

AND MERCURY, MERCURY SOB OUT $2 BILLION DEPOSITS JUST AFTER THE

COLLAPSE OF SVB. FOR THOSE OF YOU NOT FAMILIAR

WITH THEIR IS NO SPANKING FOOTPRINT, THEY HAD AN 80%

MARKET SHARE OF TECH-ENABLED OR TECH STARTUPS.

MERCURY HAS ABOUT 100,000 CUSTOMERS, MOST OF THEIR

COMPANIES ARE IN THE TECH ECOSYSTEM.

NOW THE BIGGEST INCUMBENT IS OUT AND MERCURY IS A GREAT

PLACE FOR FOUNDERS TO GO TO TO GET ACCESS TO GREAT IS THIS

BANKING SERVICES. CAROLINE: THANK YOU.

COMING UP, LET'S GET BACK TO IT -- ARTIFICIAL INTELLIGENCE --

COULD IT BE AS DEADLY TO MANKIND AS PANDEMICS OR NUCLEAR

WEAPONS? WE WILL DIG IN TO WHAT THEIR

POINTS ARE. THIS IS BLOOMBERG. ♪

CAROLINE: TIME NOW FOR WHAT IS GOING

VIRAL. YES WHAT? ARTIFICIAL INTELLIGENCE IS.

BUT IT'S THE RISKS, POTENTIALLY. THIS IS BEING POINTED OUT AS A

RISK OF EXTINCTION. IT'S NOT COMING FROM A

CONSPIRACY THEORIST, IT'S A WARNING FROM A GROUP OF

INDUSTRY LEADERS. JOINING US TO WEIGH IN ON THESE

CONCERNS, IF THEY SHOULD BE THE ONES IN THE NEAR-TERM OR NOT IS

A RESEARCH SCIENTIST THAT DID NOT SIGN THIS LATEST LETTER

COMING FROM PACE, THE CENTER FOR AI SAFETY.

WHAT DO YOU MAKE OF THESE WORRIES ABOUT LONGER-TERM

EXTINCTION VIS-A-VIS SOME OF THE REALITIES OF AI RIGHT HERE,

RIGHT NOW?

>> I THINK IT'S A WAY OF CONTROLLING THE NARRATIVE.

WE SHOULD BE TALKING ABOUT LEGISLATION, THINGS LIKE THE

RISKS AND VICE -- BIASES. WAYS AI IS BEING USED THAT IS

NOT GOOD FOR SOCIETY AT LARGE BUT INSTEAD WE ARE FOCUSING ON

THESE HYPOTHETICAL RISKS. THE COMPARISONS TO PANDEMIC

PROVOKES A VISCERAL REACTION AND IT GETS PEOPLE IN THE GUT

WHEN YOU COMPARE THINGS TO COVID.

WE CAN TALK ABOUT THAT AND FOCUS ON THAT INCIDENT THINKING

ABOUT THINGS IMPACTING OUR DAILY LIVES. ED:

WHEN YOU LOOK AT THE LIST OF SIGNATORIES TO THIS LATEST

LETTER OR STATEMENT ON AI RISKS, WHAT DO YOU THINK IS

THEIR MOTIVATION FOR DOING THIS? SASHA:

I PERSONALLY SEE IT AS A BIT OF A MAGIC TRICK, AS MISDIRECTION.

I CARE VERY STRONGLY ABOUT DATA CONSENT.

DISCLOSING DATA SOURCES, DISCLOSING TRANSPARENCY AND

MODEL DOCUMENTATION. INSTEAD OF FOCUSING ON THAT, WE

ARE BEING DIRECTED TOWARD THESE UNSOLVABLE RISKS.

WHAT CAN WE DO IF AI IS A GLOBAL THREAT TO HUMANITY AND

WHAT DOES THAT MEAN? THERE'S A PREVIOUS OPEN LETTER

ABOUT STOPPING ALL AI RESEARCH FOR SIX MONTHS WHICH WAS

EQUALLY UNREALISTIC, I WOULD SAY.

I WOULD SAY THESE COMPANIES ARE STALLING REAL REGULATION, ARE

STALLING REAL MEASURES IN AI DEPLOYMENT AND LIMITING HOW AI

IS DEPLOYED IN SOCIETY. IT IS A BIT OF A HAT TRICK.

CAROLINE: YOU WROTE A GREAT OP-ED AND

WIRED WHEN THAT FIRST LETTER BY DIFFERENT ORGANIZATION WAS PUT

OUT.

ULTIMATELY THAT SIMPLE TRUTH BEING YOU CAN'T JUST HALTED BUT

ALSO THE FACT YOU NEED TO IMPROVE TRANSPARENCY IN THE

HERE AND NOW COME ACCOUNTABILITY IN THE HERE AND

NOW AND DEVELOPING GUIDELINES IN THE HERE AND NOW.

IS ANYONE DOING THAT? HOW DO UC REAL IMPACT BEING

MADE AND HOW AI IS DISRUPTING OUR LIFE? SASHA:

THERE'S DEFINITELY A LOT OF PEOPLE DOING IMPACTFUL WORK.

AS I LOOKED AT THE LIST, I REALIZE NONE OF THEM SIGNED

THIS LETTER. PEOPLE WORKING ON AI ETHICS,

MAKING SURE PREDICTIVE POLICING DOES NOT GET DEPLOYED.

PEOPLE ARE DOING VERY IMPACTFUL WORK IN THIS FIELD AND DON'T

NECESSARILY GET THEIR SAY IN THINGS. WHEN THE U.S.

SENATE ASKS FOR EXPERTS IN AI, THEY ASK FOR SAM ALTMAN FROM

OPENAI WHO HAS A VESTED INTEREST IN AI SUCCEEDING.

WE SEE PEOPLE CONTROLLING THE NARRATIVE AND LEADING IT TOWARD

THIS EXISTENTIAL RISK, FUTURIST RISK, HYPOTHETICAL RISK AND THE

PEOPLE CALLING UPON THE DANGERS OF AI NOW AND REGULATING AI AND

DOCUMENTING AND TRANSPARENCY. THEY ARE NOT BEING GIVEN A SEAT

AT THE TABLE IN MANY PLACES. ED: AND THERE ARE THOSE OUT THERE

WHO SAY I'VE SEEN THE TERMINATOR FILMS AND THAT'S THE

EMBODIMENT OF POTENTIAL RISK. I THINK YOUR POINT IS THERE ARE

MANY MORE NEAR-TERM RISKS. THANK YOU.

THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.

CAROLINE: WHAT A FASCINATING CONVERSATION

TO END IT ON. THESE AI CONVERSATIONS KEEP

COMING UP -- THE SHORT-TERM IMPACT, THE LONG-TERM IMPACT,

BUSINESS MODELS, CHECK IT ALL ON OUR PODCAST. FROM NEW YORK

AND SAN FRANCISCO, THIS IS BLOOMBERG.