FROM THE HEART OF WHERE
INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND
BEYOND. THIS IS BLOOMBERG TECHNOLOGY
WITH CAROLINE HYDE AND THE BOW. -- ABOVE ED:
CAROLINE HYDE IS OFF TODAY BUT THIS IS BLOOMBERG'S TECHNOLOGY.
ROBOTECH SEES GET A BIG WIN IN SAN FRANCISCO. REGULATORS SPOKE TO ALLOW HIS
COMPANY TO COMMERCIALIZE THEIR ATTACK IN SAN FRANCISCO.
A GOVERNMENT PROBE INTO MALICIOUS ATTACKS ON CLOUD
COMPUTING INCLUDING MICROSOFT ROLES IN A CHINESE HACKING OF
GOVERNMENT OFFICIALS. WE HAVE THE DETAILS IN THE
AVIATION SECTOR WILL PASS A 5 TRILLION BILL TO FIGHT
DECARBONIZATION. SAN FRANCISCANS GET READY, YOU
ARE ABOUT TO SEE EVEN MORE ROBOTECH SEES ON THE STREETS.
CALIFORNIA REGULATORS VOTED IN FAVOR OF WAYMO AND CRUZ PAY
DRIVERLESS SERVICES. THE RULING CAME AFTER HOURS OF
PUBLIC TESTIMONY WITH CITIZENS ARGUING FOR AND AGAINST THE
SERVICES. THEY CAN RUN FULL DRIVERLESS
SERVICES CHARGING FAIRS DAY AND NIGHT HERE IN SAN FRANCISCO.
THE CEO JOYCE ME NOW. ED: HOW DO YOU OPERATIONALIZE
THIS? IT IS GOT IN YOUR FAVOR. WHAT HAPPENS NEXT? >> IT'S BEEN A BIG YEAR OF
SCALING FOR US. WE RAMPED UP OUR OPERATIONS AS
WE SEE THESE PERFORMANCES IMPROVE ON THE ROAD. WITH THIS PERMIT WE CAN CONVERT
THAT SERVICE TO A PRE-SERVICE. A SIGNAL TO CALIFORNIA THAT WE
WILL PRIORITIES PROGRESS. ED: I TWEETED AND ASKED A FAIR
QUESTION I GOT IN RESPONSE, WHY DID THE DUDE JUST SAN FRANCISCO.
WHY NOT SACRAMENTO, LOS ANGELES? KYLE: WE WENT TO THE CPC FOR THE
SMALL REGION OF SAN FRANCISCO, A LIMITED NUMBER OF CARS. THIS IS THE SECOND TIME WE'VE
GONE FOR A PERMANENT AND IT'S AN EXPANSION OF THE PERMIT AND
WE WILL DO THE SAME LATER THIS YEAR. WHY IS THIS A PLACE TO TEST THE
TECHNOLOGY BUT COMMERCIALIZE THE BUSINESS. WE ARE BASED HERE IN BC SAN
FRANCISCO IT'S A LITMUS TEST FOR COMMERCIALIZATION OF
ROBOTECH SEES. IF THEY WORK IN SAN FRANCISCO
WITH HIGH POPULATION DENSITY, FOG, HILLS, CONSTRUCTION THEN
THEY CAN WORK IN MANY OTHER CITIES ACROSS THE U.S.
AND FROM A BUSINESS STANDPOINT, THESE ARE THE EARLY DAYS OF THE
TECHNOLOGY. THE FIRST VERSION IS ALWAYS
MORE EXPENSIVE AND WE WANT TO START IN CITIES WITH A HIGH
ABILITY TO PAY. ED: WHAT ABOUT THE MONEY IN YOUR
POCKET? THE WAITLIST WILL BE IN THE
TENS OF THOUSANDS. YOU'RE ABLE TO CHARGE A FAIR.
YOU ONBOARD THE WAITLIST. DOES THAT BRING IN REVENUE FOR YOU
GUYS? IT GETS TO THE HISTORY OF YOUR
COMPANY. I'M INTERESTING -- INTERESTED
IN CHARGING A FAIR AND HOW RECENT IT IS? KYLE:
WE HAVE HUNDREDS OF VEHICLES BOTH FROM A YEAR AGO, WE WILL
MOVE INTO THE THOUSANDS. THE RATE OF EXPANSION HAS BEEN
IMPRESSIVE AND THIS IS NOT BECAUSE WE ARE GOING WILD IT'S
BECAUSE THE SYSTEM ITSELF IS IMPROVING SO QUICKLY.
THAT'S PART OF THE REMARKABLE THING.
THEY KEEP GETTING BETTER OVER TIME AND EXPONENTIALLY.
A COUPLE OF WEEKS AGO, THE EARNINGS CALL SAID 10,000 AND
LAST WEEK IT WAS 15,000. DEMAND IS OFF THE CHARTS AND IT
WILL LEAD TO CONTINUED EXPANSION. ED: LAST NIGHT WE AIRED AN EPISODE
OF THE CIRCUIT AS SHE TALKED TO GARY 10. YOU ARE WHY COMBO NATURES OF
2014. 19 YEARS -- NINE YEARS TAKE YOU
TO GET HERE. IT THAT FOSTER FRUSTRATINGLY
SLOW? KYLE: BUILDING A CAR THAT CAN OPERATE
IN A BETTER WAY THAN A HUMAN DRIVER IS A CHALLENGE AND THERE
ARE NO SHORTCUTS. THE FIRST EIGHT YEARS OF THIS
JOURNEY WAS A GRIND. CONTINUOUS IMPROVEMENT,
IMPROVING THE SOFTWARE WHERE WE SAW EVIDENCE OF US WOULD HAVE A
POSITIVE IMPACT ON ROAD SAFETY. UNLIKE OTHER PRODUCTS WHERE YOU
LODGED OUT THERE. THAT TECHNOLOGY HAD TO BE
MATURED AND MADE ROBUST BEFORE HE PUT IT ON THE ROADS.
IT HAS BEEN A 10 YEAR JOURNEY BUT WERE HAPPY TO PUT IT UP
THERE. ED: WE WILL LOOK AT PICTURES OF
RETROFITTED, CUSTOMIZED CHEVY VOLTS. A QUESTION I CONSTANTLY GET IS
WHY NO NEW YORK CITY AND NO CHINA BECAUSE THERE ARE CHINESE
PLAYERS THAT TEST IN THE BAY AREA AND TO CHINESE CITIES.
CAN YOU ANSWER THOSE TWO PLEASE? ED:
FROM NEW YORK AND OTHER CITIES IS NOT IF BUT WHEN.
THIS TECHNOLOGY, THE WAY WE DEPLOYED IT IS WE MAKE IT WORK
IN AN DEFINED ENVIRONMENT. IN SAN FRANCISCO YOU HAVE FOG
BUT YOU DON'T HAVE ICE OR SNOW. THAT WILL COME IN THE NEXT
COUPLE OF YEARS AND WHEN WE FI CAPABILITY WE COULD TAKE IT
INTO THE COLD WEATHER CITIES. THAT IS NOT SLOWING OUR
ATTENTION. A YEAR AGO WE WERE IN ONE CITY
AND TODAY WE'VE ABOUT 7, 8 THAT WILL BEGIN IMMINENTLY.
HE WILL SEE THAT ROUTE EXPANSION IN THE SUN BELT. ED: LET'S TALK ABOUT THE FUTURE FOR
TECHNOLOGY. THESE ARE RETROFITTED OR
CUSTOMIZED CHEVY VOLTS. WE ARE SHOWING IT RIGHT NOW. A PURPOSE BUILT, STEERING WHEEL-
LESS. KYLE:
WE ARE EXPERIMENTING BUT THE EXCITING THING ABOUT THIS
VEHICLE IT'S THE FIRST TIME A CAR HAS BEEN BUILT FROM THE
GROUND UP FOR THIS ROAD TAXI PURPOSE. OF OCELOT LONGER, DESIGNED FOR
POOL RIDES. THE COST OF IT WILL BE
SUBSTANTIALLY LOWER. CARS FEEL LIKE IT'S A CAR
WITHOUT A DRIVER. THE ORIGIN FEELS LIKE WHAT A
DRIVER THIS VEHICLE WAS MEANT TO BE IN THE EXPERIENCE WE'VE
BEEN FANTASIZING FOR YEARS. ED: CAN YOU EXPLAIN IN SIMPLE TERMS
WHEN PRODUCTION STARTS AND YOU WILL DEPLOY TO THE REAL WORLD? THE ORIGIN AGAINST EXISTING
INFRASTRUCTURE? KYLE: THIS CAR HAS NO STEERING WHEEL.
IN MULTIPLE CITIES, AS IT GOES IN PRODUCTION WE WILL MULTIPLY
THOSE VEHICLES IN A GRADUAL WAY ACROSS 7, 8 CITIES AND RAMP UP
IN EACH CITY AS WE WERE ABOUT PRODUCTION. ED: THERE IS A FIERCE BATTLE FOR
TALENT AND ARTIFICIAL INTELLIGENCE.
MACHINE LEARNING, NETWORKS IS A BIG PART OF WHAT YOU DO AS WELL.
WHAT ARE YOUR BIGGEST CHALLENGES RIGHT NOW FROM A
CASH PERSPECTIVE THAT YOU HAVE LEFT TO TACKLE IN 2023? KYLE:
WERE FORTUNATE TO HAVE ROBUST SUPPORT FROM GENERAL MOTORS. WHEN WE TALK TO CANDIDATES WE
TALK TO AI TALENT AND LIKE TO SEE THE STRONG BACKING.
THERE ARE A LOT OF AI OPPORTUNITIES THAT ARE FUN AND
INTERESTING PROBLEMS BUT THEY FEEL LIKE TOYS.
WHEN YOU WORK ON A SELF-DRIVING CARD THAT IMPACTS ROAD SAFETY
IS THE BEST WAY AND ENGINEER CAN SPEND THEIR TIME. ED: A PRETTY BIG MOMENT FOR
DRIVERLESS TECHNOLOGY HERE IN SAN FRANCISCO.
LET'S GIVE IT A CHECK IN ON THE MARKETS FOR TECHNOLOGY.
NASDAQ IS TECH HEAVY AND WE'VE TALKED ABOUT INFLATION, THE FED.
WE ARE DOWN 0.7%. I WILL TALK MORE ABOUT THE
INDEX LEVEL, THE SECOND CONSECUTIVE WEEK FOR DECLINE
INTACT. UNDERPERFORMANCE, SEMI
CONDUCTING IS OFF BY TWO PERCENTAGE POINTS, NVIDIA
DRAGGED THEIR. ONE OF THE POPULAR NAMES
BECAUSE OF AI. THE 10 YEAR YIELD IS PUSHING
HIGHER AT 4.14. BITCOIN AT 29,370. COMING UP HERE ON BLOOMBERG
TECHNOLOGY, A CYBERSECURITY PANEL IS INVESTIGATING A NUMBER
OF CLOUD COMPUTING COMPANIES INCLUDING MICROSOFT, SHARES HER
SOFT DIRT. A U.S.
CYBERSECURITY ADVISORY PANEL WILL INVESTIGATE MILITIA
TARGETING OF CLOUD COMPUTING ENVIRONMENTS INCLUDING
MICROSOFT'S ROLE IN A RECENT BREACH AT A GOVERNMENT
OFFICIAL'S EMAIL ACCOUNT BY SUSPECTED CHINESE FACTORS.
THAT ACCORDING TO THE DEPARTMENT OF HEART -- HOMELAND
SECURITY. LET'S BRING IN OUR CYBERSECURITY EDITOR, ANDREW
MARTIN. HELP ME UNDERSTAND THE BASICS
WHAT IS BEING LOOKED AT? ANDREW: THE BIDEN ADMINISTRATION
CREATED THIS CYBER SAFETY REVIEW PANEL TO LOOK AT MAJOR
CYBERSECURITY EVENTS TO FIGURE OUT WAYS TO PREVENT IT FROM
HAPPENING IN THE FUTURE BUT WHAT THEY DID HERE WAS FOLLOWED
A HACK IN JULY THAT INCLUDED A BUNCH OF U.S.
GOVERNMENT EMAIL ACCOUNTS INCLUDING GINA RAIMONDO THEY
LOOK BROADLY AT MALICIOUS ATTACKS ON CLOUD SECURITY AND
THE HACK BY SUSPICIOUS CHINESE HACKERS THAT GOT ACCESS TO
THESE EMAIL CODES. ED: LET'S GO TO MICROSOFT.
WHAT HAVE WE LEARNED ABOUT WHAT INVESTIGATORS ARE LOOKING AT
MICROSOFT ROLE IN ALL THE IS. ANDREW:
IN THIS ATTACK THE SUSPECTED CHINESE HACKER GOT WHAT IS
KNOWN AS AN ENCRYPTION KEY THAT ALLOWED THEM TO GENERATE
AUTHENTICATION TOKENS WHICH ALLOW THEM TO ACT AS THE
LEGITIMATE USE IN THE SYSTEMS AND GET ACCESS TO EMAILS AND
SENATOR RON WHITE WROTE A LETTER LAST MONTH ASKING FOR
U.S. OFFICIALS TO INVESTIGATE MICROSOFT'S ROLE IN THIS. HE ACCUSED THEM FROM -- FOR
NEGLIGENT CYBERSECURITY PRACTICES AND THAT THEIR
PRODUCTS WERE INVOLVED IN THE SOLAR WIND ATTACK SO HE HAS
BROADLY ASKED FOR AN INVESTIGATION OF MICROSOFT. THE PANEL IS LOOKING AT
MICROSOFT BUT ALL CLOUD PROVIDERS. ED: IT'S IMPORTANT WHAT WE HEAR
FROM THE AGENCIES. ALEJANDRO MAYORKAS SAID
ORGANIZATIONS ARE INCREASINGLY RELIANT ON CLOUD COMPUTING
WHICH MAKES IT IMPERATIVE WE UNDERSTAND THE VULNERABILITIES
OF THE TECHNOLOGY. DO WE HAVE A SENTENCE THAT THEY
UNDERSTAND THE VULNERABILITY NOW? ANDREW:
THAT'S WHAT WERE TRYING TO FIGURE OUT.
THE CLOUD HAS GROWN VERY RAPIDLY IN THE PAST COUPLE OF
YEARS. THERE HAS BEEN A FEW
THAT IF EXPLOITED VULNERABILITIES IN THE CLOUD.
ED: THE THING THIS INTERESTING HERE
IS WHO IN D.C. LOOKS AT THESE THINGS THINKS --
WHEN YOU THINK ABOUT THE DEPARTMENT IMPROVING ADDITIONAL
ISSUE RATHER THAN NATIONAL SECURITY ISSUE WHO HAS
JURISDICTION HERE? ED: YES. THERE IS AN AGENCY CALLED
CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY
WHICH OVERSEES THE DEFENSE OF U.S. COMPUTER NETWORKS. THEY PROVIDE PROTECTION AGAINST
ATTACKS AND INTELLIGENCE TO HELP THOSE WHO WORK IN THE
AGENCIES TO PROTECT AGAINST ATTACKS.
CYBER SAFETY REVIEW BOARD IS OVERSEEN BY THEM.
THEY ARE ADVISORY IN NATURE AND THE PURPOSE OF THEM IS NOT SO
MUCH TO PREVENT AN ATTACK BUT TO GO BACK AND SAY HERE'S WHAT
WOULD WRONG IN THIS CASE AND WHAT CAN WE DO BETTER NEXT TIME?
THE PREVIOUS LOOK FOR A SOFTWARE
VULNERABILITY, OPEN SOURCE SOFTWARE. ANOTHER MALWARE ATTACK WAS
INVESTIGATED. ED: I THINGS TO ANDREW MARTIN IN
THAT STORY CONFIRMING THE PREVIOUS BLOOMBERG REPORT.
COMING UP ON BLOOMBERG TECHNOLOGY, THE COST OF FLYING.
WHY THEY ARE CHARGING PASSENGERS FOR MORE IN ORDER TO
REDUCE CARBON EMISSIONS. HE HAD BEEN A CAREER PROSECUTOR
SERVING FOR MORE THAN A DECADE. BEGINNING IN 2019, MR. WEISS AS
DISTRICT ATTORNEY BEGAN INVESTIGATING ALLEGATIONS OF CERTAIN CRIMINAL CONTACT ROBERT
HUNTER BIDEN, THAT INVESTIGATION HAS BEEN RECENTLY
REFERENCED A CRIMINAL PROCEEDINGS IN DELAWARE AND AS
NOTED IN THOSE PROCEEDINGS AND OTHER PUBLIC STATEMENTS BY MR.
WEISS, THAT INVESTIGATION REMAINS ONGOING.
IN FEBRUARY 2021, U.S. ATTORNEY WEISS WAS ASKED TO
REMAIN DISTRICT ATTORNEY IN DELAWARE AND TO CONTINUE TO
LEAD THE INVESTIGATION. AS I SAID BEFORE, MR. WEISS
WOULD BE PERMITTED TO CONTINUE HIS INVESTIGATION, TAKE
INVESTIGATED STEPS HE WANTED TO MAKE THE DECISION WHETHER TO
PROSECUTE IN ANY DISTRICT. HE HAS TOLD CONGRESS THAT HE
HAS BEEN GRANTED ULTIMATE AUTHORITY OVER THIS MATTER
INCLUDING THE RESPONSIBILITY FOR DECIDING WHERE, WHEN AND
WHETHER TO FILE CHARGES AND FOR MAKING DECISIONS NECESSARY TO
PRESERVE THE INTEGRITY OF ANY PROSECUTION CONSISTENT WITH
FEDERAL LAW, PRINCIPAL OF FEDERAL PROSECUTOR AND FEDERAL
POLICY. IN THE LETTER MR. WEISS SAID HE
HAD NOT TO THE POINT REQUIRED SPECIAL COUNSEL DESIGNATION.
ON TUESDAY OF THIS WEEK, HE ADVISED ME THAT IN HIS
JUDGMENT, HIS INVESTIGATION HAD REACHED A STAGE AT WHICH SHE
SHOULD CONTINUE HIS WORK AS A SPECIAL COUNSEL AND HE ASKED TO
BE SO APPOINTED. UPON CONSIDERING HIS REQUEST AS
WELL AS THE EXTRAORDINARY CIRCUMSTANCES RELATING TO THIS
MATTER I'VE CONCLUDED IT'S OF THE PUBLIC INTEREST TO APPOINT
HIM A SPECIAL COUNSEL. THIS APPOINTMENT CONFIRMS MY
COMMITMENT TO PROVIDE MR. WEISS ALL THE RESOURCES HE REQUESTS
AND REAFFIRM SUB MR. WEISS HAS THE AUTHORITY HE NEEDS TO
CONDUCT A THOROUGH INVESTIGATION AND TO CONTINUE
TO TAKE THE STEPS HE DEEMS APPROPRIATE INDEPENDENTLY BASED
ONLY ON THE FACTS AND THE LAW. MR. WEISS WILL CONTINUE TO
SERVE AS U.S. ATTORNEY FOR THE DISTRICT OF
DELAWARE. A SPECIAL COUNSEL HE WILL HAVE
THE AUTHORITY AND RESPONSIBILITY THAT HAS
PREVIOUSLY BEEN EXERCISED TO OVERSEE THE INVESTIGATION TO
DECIDE WHERE, WHEN, WHETHER TO FILE CHARGES.
THE SPECIAL COUNSEL WILL NOT BE SUBJECT TO DAY-TO-DAY
SUPERVISION OF ANY OFFICIAL BUT HE MUST COMPLY WITH
REGULATIONS, PROCEDURES AND POLICIES OF THE DEPARTMENT. CONSISTENT WITH THE SPECIAL
COUNSEL REGULATION IN THE CONCLUSION OF MR. WEISS'S WORK
HE WILL REPLY ME WITH THE REPORT EXPLAINING THE
PROSECUTION OR DECLINATION DECISIONS REACHED BY HIM. AS WITH EACH SPECIAL COUNSEL I
AM COMMITTED TO MAKING HIS REPORT AS PUBLIC AS POSSIBLE
CONSISTENT WITH LEGAL REQUIREMENTS IN PUBLIC POLICY.
TODAY'S ANNOUNCEMENT AFFORDS THE PROSECUTOR'S, AGENTS, IN A
ON THIS MATTER THE ABILITY TO PROCEED WITH THEIR WORK
EXPEDITIOUSLY AND MAKE DECISIONS INDISPUTABLY GUIDED
ONLY BY THE FACTS OF THE LAW. THE MEN AND WOMEN UNDERTAKING
THIS INVESTIGATION ARE PUBLIC SERVANTS WHO HAVE DEDICATED
THEIR CAREERS TO PROTECTING THE CITIZENS OF THIS COUNTRY.
THE APPOINTMENT OF MR. WEISS REINFORCES FOR THE AMERICAN
PEOPLE THE DEPARTMENT'S COMMITMENT TO BOTH INDEPENDENCE
AND ACCOUNTABILITY IN PARTICULAR THE SENSITIVE
MATTERS. I AM CONFIDENT HE WILL CARRY
OUT HIS RESPONSIBILITY IN AN EVENHANDED AND URGENT MANNER
AND IN ACCORDANCE WITH THE HIGHEST TRADITIONS OF THIS
DEPARTMENT. THANK YOU. >> DOES HE HAVE THE AUTHORITIES
HE NEEDED THEN WHY? ED: THAT WAS MERRICK GARLAND, THE
HUNTER BIDEN PROBE HAS BEEN ASSIGNED TO SPECIAL COUNSEL BY
THE DEPARTMENT OF JUSTICE. THAT SPECIAL COUNSEL, DAVID
WEISS WILL BE THE SPECIAL COUNSEL ON THE HUNTER BIDEN
PROBE. >> AS WE JUST HEARD FROM THE
ATTORNEY GENERAL, DAVID WEISS IN DELAWARE, SINCE 2019 HAS
BEEN LOOKING INTO CRIMINAL INVESTIGATIONS AGAINST HUNTER
BIDEN. PRESIDENT JOE BIDEN SON. HE HAS BEEN GRANTED SPECIAL
COUNSEL AUTHORITY AND UNDER WHICH, HE WILL HAVE FULL
INDEPENDENCE. HE WILL NOT BE OVERSEEN BY THE
DEPARTMENT OF JUSTICE AS HE CONTINUES THIS INVESTIGATION.
IT IS IMPORTANT TO NOTE THAT EARLIER THIS SUMMER, MR. WEISS
WAS INVOLVED IN THE PLEA AGREEMENT WITH HUNTER BIDEN
WHERE HE WAS SUPPOSED TO PLEAD GUILTY TO TAX CHARGES THAT
COULD HAVE AVOIDED PROSECUTION ON A GUN RELATED CHARGE.
THE PLEA DEAL FELL APART IN COURT.
THUS NOT COMPLETELY RESOLVED AND GOING FORWARD HE WILL HAVE
A SPECIAL COUNSEL DESIGNATED. IT'S IMPORTANT TO KEEP IN MIND THAT A SPECIAL COUNSEL IS
SOMETHING REPUBLICANS BEEN CALLING FOR FOR SOME TIME AND
IN CONGRESS, THERE ARE SEPARATE, ONGOING
INVESTIGATIONS INTO HUNTER BIDEN BUT HAVE THE PRESIDENT
MAY HAVE BEEN INVOLVED. THERE WAS A HEARING WITH DEVON
ARCHER, A FORMER BUSINESS PARTNER TALKING ABOUT PHONE
CALL SO THAT THE PRESIDENT MAY HAVE BEEN ON WITH HUNTER
SIMULTANEOUSLY WITH THE PRESIDENT. THEY HAVE GIVEN THAT SPECIAL
PROSECUTOR DESIGNATION. ED: DAVID WEISS HAS BEEN MADE A
SPECIAL COUNSEL. COMING UP, NEW RESEARCH IT CAN
BE EASY TO GENERATE RACIST IMAGES USING AI. ED: WELCOME BACK TO BLOOMBERG
TECHNOLOGY. ED LUDLOW IN SAN FRANCISCO.
CAROLINE HYDE IS OFF. THE NASDAQ 100 OVER FIVE DAYS,
DOWN AGAIN 1.57%. ITS SECOND CONSECUTIVE WEEKLY
DECLINE. IT IS EASY TO FORGET THIS IS
THE FIRST BACK TO BACK DECLINE WE HAVE HAD ON THE TECH HEAVY
INDEX SINCE DECEMBER. EARNINGS SEASON HAS BEEN A BIG
PART OF THE STORY. THE CPI PRINT IS A FACTOR.
MARK IS TRYING TO UNDERSTAND WHAT THE FED MIGHT DO NEXT.
HIGHER IT -- HIGHER RATES IMPACT FUTURE CASH FLOWS.
BACK WEEKLY DECLINES ON THE NASDAQ 100.
-- BACK-TO-BACK WEEKLY DECLINES ON THE NASDAQ 100.
ONE NAME WE ARE LOOKING AT IN PARTICULAR IS ALPHABET, PARENT
OF GOOGLE. IT IS LOWER FOR THE FRIDAY
SESSION BUT ON A WEEKLY BASIS, IT HAS FAIRED BETTER.
WHAT I WANT TO TALK ABOUT NEXT IS ALPHABET'S BIG PILE OF CASH.
THEY GENERATED NEARLY 0 BILLION AFTER CUTTING JOBS.
BUT THE GOOGLE PARENT HAS AROUND 18 BILLION IN CASH IN
SHORT-TERM SECURITIES, WHERE THAN ANY UNDER -- MORE THAN ANY
O THER COMPANY EXCEPT APPLE. BUT ALPHABET DOES NOT HAVE A
WELL-DEFINED STRATEGY SO INVESTORS ARE SEEKING MORE
DETAILS. WE BLAST AND TRY TO GET THOSE
ANSWERS. FROM BIG TECH TO LITTLE TECH.
GOOGLE IS GOING BIG ON AI, AS IS MICROSOFT AND OTHER BIG
NAMES. TAKE MID JOURNEY. IT IS AN INDEPENDENT RESEARCH
LAB THAT HAS BEEN HERE MEANT TO AI AND CAN GENERATE IMAGES
USING AI. IT IS THE SUBJECT OF TODAY'S
BLOOMBERG TECH DAILY NEWSLETTER. YOU AND I LOOK AT AI COMPANIES
DEVELOPING GENERATIVE AI AND INTERACT WITH THEIR APPS AND
TECHNOLOGY. WHY HAVE YOU BEEN WRITING ABOUT
THIS PARTICULAR NAME IN THE NEWSLETTER? >> IT IS GREAT TO BE HERE.
I THINK BEEN CHURNING, WHICH HAS BEEN FLOATING AROUND, THE
NAME. IF YOU RECALL THE VIRAL IMAGE
OF THE POPE IN A PUFFER JACKET, IT WAS PAINTED BY MID JOURNEY. IT IS ONE OF THE BIGGER AI
GENERATING APPS. IF YOU THINK OF THE THREE
BIGGEST ONES, IT WOULD BE MID JOURNEY, OPENAI'S DALI
INSTABILITY AI'S STABLE -- AND STABILITY AI'S STABLE DIFFUSION.
ACCORDING TO RESEARCH, THIS IS THE MOST POPULAR AI GENERATED
AVENUE OUT THERE IT IS CONCERNING IT AND BE -- CAN BE
EASILY TRACKED. ED: OK, MIDJOURNEY, DALI, AND
STABLE DIFFUSION. IS IT FAIR TO SAY MIDJOURNEY
HAS THE MOST FLEXIBLE STANDARDS OF THOSE THREE? DAVEY:
ACCORDING TO THIS REPORT, IT SEEMS TO BE THE CASE.
RESEARCHERS FROM THE CENTER FOR COUNTERING DIGITAL EIGHT SHOWED
AN EARLY REPORT WITH US EXCLUSIVELY. THEY FOUND 100 EXAMPLES WHERE
MIDJOURNEY'S BOT WAS EASILY TRICKED INTO
CREATING CONSPIRATORIAL IMAGES. THEY SHOWED PROFS WHERE PEOPLE
WERE ORDERING UP IMAGES OF PAUL -- PROMPTS WHERE PEOPLE WERE
ORDERING UP IMAGES OF POLITICIANS IN COPPER SIZING --
COMPROMISING POSITIONS. THERE ARE SOME GUARDRAILS.
MIDJOURNEY WILL NOT GENERATE AN IMAGE IF YOU HAVE CERTAIN
KEYWORDS LIKE BLOOD OR ANYTHING REFERRING TO GORE OR VIOLENCE.
BUT IT IS SO EASY TO TRACK IT. WHAT EXAMPLE WE TALK ABOUT IN
THE NEWSLETTER AS YOU CAN ASK IT TO GENERATE AN EXAMPLE OF "
VILLAIN HILLARY CLINTON WITH HER HANDS COVERED IN STRAWBERRY
SYRUP." THAT MAKES IT LOOK LIKE SHE HAS
LITERAL BLOOD ON HER HANDS. RESEARCHERS ARE WORRIED FOR THE
2024 ALEXION. ED: WE HAVE COVERED THE TEXT TO
IMAGE ISSUE, BIASES, OR A RESULT THAT'S NOT WHAT YOU
INTENDED. LET'S BE FAIR AND SAY, WHAT
THIS MEANT JOURNEY HAVE TO SAY ABOUT THIS?
WHAT IS THE RESPONSE TO THE REPORTING ON THEIR STANDARDS?
DAVEY: THEY DID NOT SEND A RESPONSE ON
THE RECORD. IT HAS SAID IN THE PAST THAT IT
HAS DOZENS OF MODERATORS AND GUIDES THAT LOOK AT THE CONTENT
ON THEIR DISCORD CHAT APP. THAT IS THE MAIN INTERFACE
MAJORITY USES. THEY SAY THESE 68 CONTENT
MODERATORS SCOUR THE CHAT AND MAKE SURE ALL THEIR QUESTS ARE
ABOVEBOARD. BUT IT SEEMS LIKE THEY ARE LED
TO SOME REQUESTS GO STRAIGHT THROUGH. BEYOND THAT, THERE IS AUTOMATIC, ALGORITHMIC AI THAT
CHECKS ON THE REQUESTS USING TEXT MATCHING TO MAKE SURE
CERTAIN TERMS, LIKE AGAIN ABOUT VIOLENCE AND GORE, ARE NOT
CREATING IMAGES BUT THEY ARE EASILY CIRCUMVENTED. ED: DAVEY ALBA WITH THE BLOOMBERG
TECH DAILY. I ENCOURAGE YOU TO GO OUT AND
READ IT. COMING UP, THE STATE OF AI
DEVELOPMENT IN ADOPTION PARTICULARLY IN ENTERPRISE.
THAT IS WHERE THE INSIGHT PARTNERS MANAGING DIRECTOR ED:
TIME FOR TODAY'S VC SPOTLIGHT. LET'S TALK ABOUT CYBERSECURITY
AND AI. INSIGHT PARTNERS RECENTLY
RELEASED ITS STATE OF THE ENTERPRISE REPORT TO BREAK DOWN
THE FUTURE OF FRANCHISE ADOPTION AND TAILWINDS. THE MANAGING DIRECTOR LONNE
JAFFE JOINS US NOW. SO MUCH OF OUR AUDIENCE EITHER
WORKS FOR OR IS A CUSTOMER OF ENTERPRISE CLOUD.
THEY ARE THINKING HEAVILY ABOUT HOW THESE DEVELOPMENTS
HAPPENING RIGHT NOW IN AI IMPACT THEIR CORE BUSINESS.
JUST GIVE ME THE KEY TAKEAWAYS FROM THE REPORT YOU PUBLISHED
VERY RECENTLY. LONNE: THE INSIGHT PARTNERS'S STATE OF
ENTERPRISE TECH REPORT. THIS IS A STUDY THAT REACHED
OUT TO 300 SENIOR TECHNOLOGISTS AT SOME OF THE WORLD'S LARGEST
COMPANIES. 70% OF THEM GENERATE MORE THAN
0 BILLION IN ANNUAL REVENUE. A LOT OF REPORTS AROUND
SPENDING PLANS AND AREAS AROUND CYBERSECURITY AND GENERATIVE AI.
CYBERSECURITY WAS A BIG FOCUS. WONDER WHERE CONCERN FOR BIGGER
COMPANIES AND GOVERNMENTS IS AROUND THE POSSIBILITY -- ONE
CONCERN FOR THEIR COMPANIES AND GOVERNMENTS IS AROUND THE
POSSIBILITY OF SEEING AN INCREASE OF RANSOMWARE ATTACKS. THE GOVERNMENT LAUNCHED AN AI
SEVERED CHALLENGE WORKING WITH COMPANIES LIKE ANTHROPIC,
GOOGLE, MICROSOFT AND OPENAI WHICH WILL HAVE TEAMS TO
CONTRIBUTE SOFTWARE ABILITIES USING AI. ED:
I DID NOT MEAN TO JUMP IN. BUT ON THIS SHOW, WHEN WE TALK
IN A CYBERSECURITY CONTEXT, SO MANY PEOPLE SAY TOOLS WE HAVE
AND YOU GUYS HAVE, YOU THREAT ACTORS HAVE THEM AS WELL.
WHY PUBLISH THIS REPORT? WHAT DO YOU GUYS GET OUT OF IT?
LONNE: WE HAD A PROGRAM CALLED
ANTI-ON-SITE AND IT GENERALLY TRIES TO HELP OUR PORTFOLIO
COMPANIES WITH AN ENORMOUS AMOUNT OF RESOURCES.
IT HELPS WITH PRODUCTS, STRATEGY, MARKETING AND SALES.
THERE IS PART OF A TEAM THAT MANAGES RELATIONSHIPS WITH
BUYERS. THIS IS A GREAT WAY TO STAY IN
CONTACT WITH THEM. IT HELPS OUR COMPANIES SCALE
AND POTENTIAL COMPANIES AND BUYERS.
THIS WEEK, IT WAS ANNOUNCED CHECKPOINT ACQUIRED COMPANY ONE
WHICH ALLOWS US TO BUILD A CORPORATE NETWORK OVER THE
INTERNET FOR AROUND $490 MILLION.
THIS WEEK, RUBRIC ANNOUNCED IT SIGNED AN AGREEMENT TO ACQUIRE
A COMPANY FOR CYBERSECURITY AND DATA. THESE ARE DEEP TECH
CYBERSECURITY STARTUPS. WHEN THE COMPANIES ARE SMALL
AND GROWING RAPIDLY, THAT CONNECTEDNESS WITH THE BUYERS
CAN GROW RAPIDLY -- CAN BE IMPORTANT. ED:
AND YOU HAVE OFFICES IN TEL AVIV. ONE OF THE BIG STORIES HAS BEEN
VC'S ATTITUDE TOWARD THE COUNTRY GIVEN THE SOCIETAL AND
POLITICAL THINGS HAPPENING. HOW DO YOU VIEW AS REALLY TECH
-- VIEW ISRAELI TECH?
CYBERSECURITY HAS BEEN WHAT IF THE MAIN OFFERINGS OUT OF
ISRAEL. LONNE: WE ARE BASED IN NEW YORK CITY
AND THERE IS A CLOSE CONNECTEDNESS BETWEEN THE NEW
YORK CITY TECH SCENE AND THE ONE IN TEL AVIV.
THERE ARE A LOT OF COMPANIES, WHEN THEY LAND IN THE YOU
ASKED, THEY WILL PICK NEW YORK CITY AFTER LANDING PLACE.
THERE WERE A FEW OTHER COMPANIES THAT PROVE YOU CAN
SCALE A MASSIVE INFRASTRUCTURE SOFTWARE COMPANY IN MANHATTAN. THAT IS A BIG EARLY PART OF OUR
INTEREST. WE ARE ACTUALLY VERY HELPFUL TO
THE INVERSELY COMPANIES -- TO THE ISRAELI COMPANIES BECAUSE
THEY NEED TO START SCALING UP INTERNATIONALLY RIGHT AWAY.
WE HAVE A LOT OF EXPERTISE AROUND GLOBAL SELLOUT AND
HIRING LEADERS. THINGS LIKE THAT. ED:
LET'S GO BACK TO YOU. YOU HAD A DECADE AT IBM AND NOW
ARE IN THE VC ROLE. HOW DO YOU FIND THE NEXT IBM IN
THIS ENVIRONMENT, SUCH A HEAVY FOCUS ON AI.
WHAT ARE YOU SEEING? LONNE: WE ARE STILL ONLY A FEW MONTHS
INTO IT BUT THERE SEEMS TO BE SOME EARLY IMPORTANT
DIFFERENCES STARTING TO SHOW UP WHEN COMPARED TO THE PRIOR
GENERATIONS OF AI. THE AI PREDICTION SYSTEMS LIKE
THE RECOMMENDATIONS OR CLASSIFICATION SYSTEMS AND
THINGS LIKE HEALTH CARE LIKE OUR PORTFOLIO COMPANY
GENERATIVE HEALTH WHICH CAN USE VIDEOS TO FIND CANCER POLYPS
FROM A COLONOSCOPY VIDEO. THIS TOOK TIME. WE NEEDED BIG TEAMS, CONFERENCE
-- YOU ARE SEEING THIS WITH INCUMBENT SOFTWARE VENDORS BUT
CUSTOMERS HAVE BEEN ABLE TO BUILD ANSWER TO GENERATIVE AI
PRODUCTS EXTREMELY QUICKLY. SOME HAVE RELEASED THINGS
ALREADY THIS YEAR EVEN THOUGH IT IS ONLY BEEN A FEW MONTHS.
AND THEY ARE ABLE TO GIVE THESE WOODS MODELS OR GENERATIVE AI
CAPABILITIES ACCESS TO HUNDREDS OF -- THESE
MODELS OR GENERATIVE AI CAPABILITIES ACCESS TO HUNDREDS
OF DATA. WE HAVE PORTFOLIO SETS GOING
THROUGH REALLY RAPID GROWTH AND HELPING THE FIGURE OUT, YOU CAN
BUILD GENERATIVE AI CAPABILITY AND LINE IT UP TO ALL YOUR
USERS AND IT CAN USE YOUR PRODUCT.
IN A WAY, IT IS A STARTUP BECAUSE IT IS A NEW CAPABILITY.
I'VE TAKEN TO INTERACTIVE Q&A WITH ALL YOUR ENTERPRISE DATA.
YOU CAN ASK A QUESTION LIKE, WHICH OF MY SALES REPS IS MOST
PRODUCTIVE? OUR COMPANIES ARE ABLE TO GET
THESE IMPRESSIVE GENERATIVE AI CAPABILITIES OUT THE DOOR IN
JUST A. IT TELLS THE BALANCE OF POWER
FROM STARTUPS TO INCUMBENTS BUT THERE ARE A FEW INTERESTING
START CATEGORIES WE HAVE BEEN LOOKING AT. ONE, AS KEVIN SCOTT PUTS IT, IS
A COMPANY CAN DO THE PREVIOUSLY IMPOSSIBLE THING THAT IS
POSSIBLE BUT STILL HARD. BUT YOU STILL HAVE TIGHT AND
TALENT. LIKE A COMPANY UNLEARN THAT USE AI TO CREATE SYNTHETIC VIRTUAL
TRENDS -- VIRTUAL TWINS. IT ALLOWS RESEARCHERS TO
CONDUCT TRIALS WELL NEEDING SIGNIFICANTLY FEWER REAL
PATIENTS TO GET THE SAME QUALITY OUTCOMES.
IT IS STILL REALLY HARD BUT NOW POSSIBLE.
THERE MAY NOT BE AN INCUMBENT. THOSE THINGS CAN LEND VERY WELL
TO STARTUPS. ED: INSIGHT PARTNERS'S MANAGING
DIRECTOR LONNE JAFFE. GOOD TO CATCH UP WITH THE ON VC
SPOTLIGHT. IT'S HEAD BACK TO SPACE --
LET'S HEAD BACK TO SPACE. THAT'S WAS RUSSIA LAUNCHING ITS
FIRST LUNAR LANDER TO THE MOON IN NEARLY 50 YEARS THIS FRIDAY
SCARLET: -- THIS FRIDAY. THIS ROCK IS BLASTED OFF FROM
RUSSIA'S FAR EAST IN THE EARLY HOURS OF MOSCOW TIMES.
IT REACHED ORBIT. THE SPACECRAFT WILL CONTINUE
ITS JOURNEY FOR A FEW DAYS TO REACH LIUNAR ORBIT, GETTING
SAFELY TO THE MOON WOULD PROVIDE A MUCH-NEEDED BOOST FOR
RUSSIA'S SPACE STATE CORPORATION WHICH HAS STRUGGLED
IN RECENT YEARS. COMING UP A BLOOMBERG
TECHNOLOGY, THE THIRD RICHEST PERSON IN THE WORLD IS ADDING A NEW PROPERTY TO THE TUNE OF $68
MILLION. PLUS, THINK AIRBNB BUT FOR CARS. ED: TIME FOR GOING VIRAL.
HAVE YOU SEEN THIS? JEFF BEZOS AND HIS NEW
WATERFRONT MANSION IN FLORIDA. HE AGREED TO PAY AROUND $68
MILLION FOR A THREE BEDROOM ESTATE DUBBED THE "LOOKING
THERE BUNKER OF FLORIDA." IT IS ON A MAN-MADE BARRIER
ISLAND IN THE LARGER MIAMI AREA. I KNOW A LOT OF PEOPLE THAT
MOVED TO MIAMI AND ARE NOT SPENDING $68 MILLION IN THEIR
HOUSE. IN OTHER NEWS, THE RICHEST
PERSON IN THE WORLD, ELON MUSK SAYS HE SPENT THREE HOURS IN AN
MRI MACHINE AHEAD OF A PROPOSED CAGE MATCH WITH MARK ZUCKERBERG.
THE PROBLEM SHOWS THERE IS A SHOULDER BLADE RUBBING AGAINST
HIS RIBS WHICH REQUIRES MINOR SURGERY.
THE RECOVERY WILL TAKE A FEW MONTHS.
WE HAVE NO IDEA WHETHER THE PROPOSED CAGE MATCH WILL GO
AHEAD. TURO IS TAKING ON TRADITIONAL
CAR SERVICES LIKE AVIS, BUDGET AND HERTZ TO ALLOW PEOPLE TO
LIST THEIR VEHICLES. WE HAVE THE CEO ANDRE HADDAD.
IT HAS BEEN A WHILE SINCE WE CAUGHT UP ON BLOOMBERG
TECHNOLOGY. I WANT TO ASK ABOUT THE MACRO
STORY. WE HAVE SEEN WITH AIRBNB,
CERTAIN BEHAVIORS WITH SHORT-TERM RENTALS WHEN IT
COMES TO HOUSES. WHAT DO YOU SEE WITH BEHAVIOR
OF PEOPLE LISTING VEHICLES ON TURO?
IS IT BECAUSE THEY ARE UNDER FINANCIAL STRESS OR OTHERWISE?
ANDRE: THE PICTURE OF THE COMMUNITY OF
TURO HOST HAS BEEN POSITIVE THE LAST COUPLE YEARS.
CAR PRICES HAVE GONE OF AND INTEREST RATES HAVE GONE UP.
MORE PEOPLE ARE LOOKING FOR WAYS TO MAKE THEIR KARMIC SENSE
FINANCIALLY. WE HAVE SEEN TREMENDOUS GROWTH
IN OUR HOSTING COMMUNITY. WE HAVE SEEN PEOPLE START
BUILDING BUSINESSES ON TOP OF OUR APP.
WE HAVE SEEN MULTICAR HOSTS REALLY TAKE COMMUNITY AS WE ARE
EXCITED TO BE ABLE TO HAVE BOTH CONSUMER HOSTS AND MULTICAR
HOSTS. ENTREPRENEURS ARE BUILDING
SMALL FLEETS ON OUR APP. ED: THE STORY ON THE YEAR HAS BEEN
ARTIFICIAL INTELLIGENCE, EITHER GENERATIVE AI OR USING A LARGE
LANGUAGE MODEL. WHAT IS TURO UP TO? ANDRE:
WE HAVE JUMPED INTO IT. WE LAUNCHED OUR PLUG-IN FOR
CHATGPT AND WE ARE EXCITED ABOUT THE INITIAL REACTION WE
ARE SEEING. ED: HOW DOES IT WORK? ANDRE:
YOU ADD THE PLUG-IN TO CHATGPT AND DOWNLOAD IT.
THEN YOU HAVE THE TURO PLUG-IN ON IT AND CAN START NAVIGATING
TURO IN FUN WAYS. YOU CAN START ASKING TO GET
REALLY WONDERFUL CARS IN A PARTICULAR LOCATION.
YOU CAN DESCRIBE THE KIND OF CARS YOU LIKE, THE KIND OF
BUDGET, THE SPECS, AND CHATGPT WILL PROVIDE YOU WITH THE
INCREDIBLE SELECTION. ED:
SO IT AT ITS CORE IS BASICALLY AUTOMATION SEARCH BUT AT NEXT
LEVEL? ANDRE: YES.
INSTEAD OF HAVING THE CUSTOMER AT ALL THE CRITERIA AND FILTER
THROUGH ALL KINDS OF THINGS THAT YOU CAN IMAGINE WHEN YOU
ARE TRYING TO FIND THE PERFECT CAR FOR YOUR TRIP, YOU CAN ASK
CHATGPT TO DO THIS OR YOU. AND WE CAN DELIVER A GREAT
COMBINATION. ED: WHAT IS THE RESULT?
HAS IT INCREASED VOLUME TO THE AFT OR ARE THERE EASIER MATCHES?
ANDRE: IT IS EASIER MATCHING. WE ARE SEEING AN INCREASE IN
MATCHING RATES AND GROWTH IN TRAFFIC BECAUSE MANY MORE
PEOPLE ARE DISCOVERING TURO THROUGH CHATGPT. ED:
WHERE ARE YOU GOING RIGHT NOW, EITHER IN THE U.S.
OR INTERNATIONALLY? ANDRE: IN ALL OF OUR LOCATIONS, WE
EXPANDED IN FRANCE AND AUSTRALIA. THE U.S.
BUSINESS CONTINUES TO GROW RAPIDLY.
WE ARE EXCITED TO CONTINUE TO EXPAND RAPIDLY.
WE ARE SEEING TURO HAVE A CHANCE TO BE EVERYWHERE AROUND
THE WORLD. ED: ANDRE HADDAD, GOOD TO CATCH UP.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
WHAT A WEEK IT HAS BEEN FOR EARNINGS, MARKETS, AND AI AND
BILLIONAIRES. THERE IS A LOT MORE TO COME.
YOU CAN ALWAYS RECAP EVERYTHING FROM THE SHOW ON OUR PODCAST.
WE ARE ON APPLE, SPOTIFY, IHEART AND ALL THE BLOOMBERG
PLATFORMS. FROM SAN FRANCISCO.
