>> FROM THE HEART OF WHERE
INNOVATION, MONEY, POWER COLLIDE IN SILICON VALLEY AND
BEYOND THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE
AND ED LUDLOW . >> I AM SCARLET FU IN FOR
CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN YORK. >> I AM ALEX IN FOR ED LUDLOW
IN SYMPHYSIS GO THIS IS "BLOOMBERG TECHNOLOGY." >> THE BLOWOUT FORECASTED
SPARKS AN AI RALLY, WE WILL BREAK DOWN RESULTS AND HOW TO
TRADE THE AI RALLY. >> AS A CATASTROPHIC DEFAULT
LOOMS WE WILL BE TO ONE VETERAN WHO JOINED CEO'S IN WRITING A
LETTER TO CONGRESS ON A CONCERN ON THE MATTER. >> WE WILL DISCUSS WHY IT IS
ACQUIRING DESKTOP METAL WITH ITS CEO, ALL THAT MORE COMING
UP. WE WANT TO GET YOU A CHECK ON
THE MARKETS ON MIDDAY ON THIS THURSDAY. S&P 500 MOVING HIGHER BY .5%,
ALL THINGS TO TECHNOLOGY. LOOK AT THE PHILADELPHIA
SEMICONDUCTOR INDEX HIGHER BY ALMOST 6% THINK TO NVIDIA
BETTER THAN EXPECTED SALES FORECAST. IT IS NOT AS IF ALL
CHIPMAKERS ARE RISING, WE HAVE WEAKNESS IN INTEL AND ANALOG
DEVICES AS WELL, THERE IS A LOT OF ANGST OVER THE DEBT CEILING
HOW LITTLE PROGRESS THERE SEEMS TO BE AS WE GET CLOSER TO JUNE
1, THE YIELD ON THE TWO-YEAR RING UP ON SEVEN BASIS POINTS
COME THE 10TH STRAIGHT DAY YIELDS HAVE MOVED UP REFLECTING
A PERSISTENT DECLINE IN DEMAND FOR THAT SECURITY.
FITCH PUT THE U.S. ON CREDIT WATCH FOR A POSSIBLE
DOWNGRADE ALTHOUGH IT SAYS IT EXPECT A DEAL AT THE LAST
MINUTE. MARKETS ARE PRICING IN
INCREASED ODDS THE FEDERAL RESERVE WILL RAISE INTEREST
RATES AT THE NEXT TWO MEETINGS. THE GDP REPORT SHOWED A FASTER
RATE OF GROWTH THAN WHAT HAD BEEN PREVIOUSLY ESTIMATED, WITH
THE U.S. DOLLAR STRENGTHENING LET'S
CHECKUP -- CHECK THE BOARDS. COMMODITIES ARE LOWER, LIKE NEW YORK CRUDE, WTI OFF BY 4% ON
THE MOMENT, SNAPPING A THREE DAY ADVANCE.
SAUDI ARABIA SAME PEOPLE SHORTING THE ORAL MARKET SHOULD
-- OIL MARKET SHOULD WATCH OUT, RUSSIA SAID IT IS UNLIKELY OPEC
AND ITS PARTNERS WILL BE CUTTING PRODUCTION IN THE
NEAR-TERM. GOLD FUTURES ARE DOWN, 9/10 OF
A PERCENT, WAS READING ONE ANALYSTS SAID,.
WHEN INSTITUTIONAL INVESTORS LOOK FOR SOMEWHERE TO HIDE OUT
THEY GO TO GOLD, WHEN INDIVIDUAL INVESTORS LOOK TO
HIDE OUT THEY GO TO THE GOING. IT IS -- BITCOIN.
IT IS AN INTERESTING EXPLANATION. ALEX:
I WANT TO BRING YOU TO SOME OF THE RED ON THE DAY SNOWFLAKE
TAKING ITS BIGGEST PLUNGE IN OVER A YEAR.
REPORTING A DISAPPOINTING SALES OUTLOOK FOR THE CURRENT QUARTER
THE SOFTWARE COMPANY IS KNOWN FOR CHARGING CUSTOMERS ON A
PAY-AS-YOU-GO MODEL. IT SAYS THE UNCERTAIN ECONOMIC
CONDITIONS HAVE CLIENT SLOWING DOWN AND USING THE PRODUCTS.
LET'S MOVE ON THE GREEN, DISH IS IN TALKS TO SELL HIS NEW
MOBILE PHONE SERVICE THROUGH AMAZON.
THEY USE AMAZON CLOUD TO USE -- RUN CORE ELEMENTS OF THE 5G
CLOUD, THIS WOULD GIVE THEM ACCESS TO AMAZON'S MILLIONS OF
CUSTOMERS. ONTO SOME OF THE BIGGER MOVERS
OF THE DAY MICROSOFT TRADING AT A 16 MONTH HIGH, INVESTORS ON
THE HUNT FOR THE NEXT AI TRADE. WE TALK ABOUT SAFE HAVENS AND
THIS COMPANY HAS BEEN ON AN -- OUT FRONT ON THE AI TRADE, NOT
NEW NEWS MICROSOFT HAS BEEN OUT FRONT IN AI, BIGGEST
STAKEHOLDER IN OPEN AI AND BRINGING ARTIFICIAL
INTELLIGENCE TO ITS CLOUD OFFERINGS AND SOFTWARE.
WHAT IS GIVING IT A LITTLE BIT OF A LOOK IS A HALO EFFECT ON
THE TOP STOCK I AM WATCHING TODAY.
I WILL TAKE US TO NOW LET'S GO TO NVIDIA.
EVERYONE LOOK OVER THE NEXT AI TRADE THIS IS WHY, NVIDIA UP A
ROBBING 27% AT RECORD HIGH LEVELS AND FLIRTING WITH THAT
BIG STICKER $1 TRILLION VALUATION.
THE CHIPMAKER REPORTED A REVENUE FORECAST THAT SURPRISED
THE MOST BULLISH OF ANALYST ON THE SALES OF ITS PROCESSES USED
IN AI TECHNOLOGY. SELLING TO CUSTOMERS LIKE MICROSOFT AND OUT -- ALPHABET,
THEY CALLED THIS THE GREATEST BEAT OF ALL-TIME OF ANY
EARNINGS REPORT THEY HAVE SEEN, THE STOCK COULD BE BENEFITING
FROM THAT SAFE HAVEN EFFECT WE HAVE SEEN IN TECH STOCKS LATELY.
WE WILL DIG INTO THAT SHORTLY. FIRST I WANT TO GET MORE ON
NVIDIA AND THE AI DEMAND THAT HAS BEEN MOVING.
LET'S BRING IN BLOOMBERG'S IAN KING.
BIG REPORT OUT OF NVIDIA TODAY -- YESTERDAY.
LOTS OF EXCITEMENT ON THE FORECAST. DIG INTO THE NUMBERS. >> THEY EMBARRASSED WALL STREET.
THE PREDICTION OF 11 BILLION, THE BIGGEST QUARTER EVER FOR
THE CURRENT PERIOD, 83% HIGHER THAN WHERE THE AVERAGE
EXPECTATION WAS -- 53% HIGHER THAN THE AVERAGE EXPECTATION.
EVEN THE PALTRY LONG FORGOTTEN, NOBODY CARES ABOUT EASY
BUSINESS IS LOOKING BETTER FOR THEM -- PC BUSINESS IS LOOKING
BETTER FOR THEM. WILDLY SURPRISED EVERYONE ON
THE UPSIDE AND GAVE INVESTORS EXACTLY WHAT THEY'RE LOOKING
FOR. SHOW ME THE COMPANY ACTUALLY
MAKING MONEY OUT OF THIS AI THING. >> IT SEEMS LIKE IT IS HITTING
ON ALL CYLINDERS. WHEN YOU ZOOM OUT, NVIDIA
ALWAYS SEEMS TO BE ON THE FRONT LINES OF WHATEVER THE NEW HOT
THING IN TECH IS. I REMEMBER SUPER HIGH-END VIDEO
GAMES, NVIDIA IS THERE. BITCOIN MINING, NVIDIA'S THERE.
NOW AI, NVIDIA IS THERE. >> THE FUNDAMENTAL LEVEL FROM
THE CEO, YOU'RE TALKING ABOUT WHAT HE CALLS A SHIFT IN
COMPUTING TO ACCELERATED COMPUTING.
THE IDEA THAT INSTEAD OF USING A TYPE OF CHIP THAT DOES
EVERYTHING QUITE WELL. AN INTEL CPU, USE A CHIP AS --
THAT HAS A SPECIFIC PURPOSE THAT IS REALLY GOOD AT DOING
SIMPLE THINGS RELATIVELY, BUT A VERY PARALLELIZED WAYS.
IT IS A HUGE RUSH TO AI TRAINING SOFTWARE OR TAKING THE
SOFTWARE AND DOING THE IMPLEMENTATION OF IT.
RECOGNIZING CATS IN VIDEO OR WHAT YOU SAY TO YOUR ALEXA
SPEAKER AND MAKING THAT MORE EFFICIENT. ALEX:
I DO NOT WANT TO DAMPER ON THE DAY FOR NVIDIA THEY'RE HAVING A
BIG ONE. IT MIXED ME WONDER WHEN YOU
THINK ABOUT THE HYPER SCALARS, THE FOLKS LIKE MEHTA, THEY ARE
-- META, THEY ARE KNOWN FOR WANTING TO VERTICALLY INTEGRATE
THE INFO STRUCTURE STACK. WHEN DO YOU SEE CUSTOMERS
CREATING THEIR OWN SILICONE? >> YOU WROTE ABOUT IT RECENTLY,
THIS IS THE QUESTION HANGING OVER THEM AND NVIDIA HAS TWO
ANSWERS TO THAT. ONE IS WE CAN RUN FASTER THAN
THEY CAN BECAUSE WE HAVE A HEAD START ON THIS.
THE SECOND ANSWER TO THIS IS, IF AI IS ULTIMATELY THE
PRESERVE OF MICROSOFT, META, AMAZON, EIGHT OF U.S., IT IS
NOT GOOD ENOUGH -- AWS, IT IS NOT GOOD ENOUGH.
THEY HAVE BEEN MAKING DEVICES AND CLOUD SERVICES AND THEIR
OWN SOFTWARE THAT WILL HELP PHARMACEUTICAL COMPANIES.
ROBOTICS COMPANIES. AUTOMOTIVE COMPANIES GET INTO
THIS. THEY ARE TRYING TO HEDGE THEIR
BETS THERE AND STAY AHEAD OF THE GAME. ALEX:
THEY HAVE DONE A GREAT JOB OF STAYING AHEAD OF THE GAME.
WE HAVE BEEN TALKING ABOUT HOW WALL STREET STRATEGIST MICHAEL
HARTNEY A BANK OF AMERICA SAYS THERE IS A MINI BUBBLE IN AI
AND A BUBBLE IN TECHNOLOGY. IS THERE ANY ACKNOWLEDGMENT OF
THIS IN SAN FRANCISCO, GROUND ZERO OF THE TECHNOLOGY THAT
THINGS ARE GETTING A BIT FROTHY? GUEST:
IF YOU LOOK AT THE INBOX OF ANY JOURNALIST IT WILL BE FULL OF
PICTURES WITH THE WORD AI IN IT. WHAT DOES THAT TELL YOU?
WE HAVE BEEN THROUGH THIS BEFORE, OBVIOUSLY.
NVIDIA IS A REAL GOOD CASE IN POINT AND THE WAY THE MARKET
HAS REACTED IS A GOOD CASE IN POINT.
NOT EVERY CHIP STOCK IS UP TODAY. INTEL IS DOWN. SOME OF THE OTHERS ARE SLIDING
OUT, THERE IS A LITTLE BIT MORE SOBRIETY AT LEAST IN MY SECTOR.
IN TERMS OF OTHER AREAS THERE IS A LOT OF TALK. ALEX:
NVIDIA IS DELIVERING AND IT IS PROFITABLE COMPARED TO
COMPANIES IN PAST MOMENTS OF EXCESSES.
IAN, THINK YOU FOR YOUR DECADES OF EXPERIENCE COVERING
SEMICONDUCTORS IN ASIA AND THE U.S.. LET'S BRING IN MONA, EVERY
JONESES SENIOR INVESTMENT STRATEGIST. YOU LISTEN TO US
TALK TO IAN JUST NOW. WHEN THE S&P 500 UP 610 7%,
CLEARLY -- .6%, CLEARLY POWERED BY TECH NAMES THE DOW LOSES
BECAUSE IT DOESN'T HAVE TECH EXPOSURE.
IS THIS A STRONG STOCK MARKET OR A FRAGILE STOCK MARKET GIVEN
HOW NARROW THE WINNERS ARE? >> THIS YEAR THE S&P IS UP 7%
PLUS IT IS BEEN VERY NARROW LEADERSHIP.
ONLY THREE SECTORS ARE OUTPERFORMING THE BROADER
MARKET. TECHNOLOGY, COME SERVICES,
CONSUMER DISCRETIONARY. THE QUALITY GROWTH PARTS OF THE
ARGOT SOME OF THE SECTORS ARE UP 20% PLUS, BACK IN BULL
MARKET TERRITORY. THE CYCLICAL MORE DEFENSE PARTS
OF THE MARKET ARE MORE LAGGING. WE WOULD LIKE TO SEE A BROADER
PARTICIPATION IN A MARKET RALLY THAT TO US AS A MORE HEALTHY
SIGN THAT THE ECONOMY, THE UNDERLYING FUNDAMENTALS IN THE
MARKET BROADLY HAS MORE ROOM TO RUN.
THE NARROW LEADERSHIP DRIVEN BY A FEW SECTORS AND A FEW NAMES,
WE ALSO SEEING VALUATION EXPANSION CREEP BACK INTO THE
MARKET AS WELL. ALTHOUGH EARNINGS GROWTH THIS
PAST QUARTER DID EXCEED EXPECTATIONS, WE ARE STILL
LOOKING AT NEGATIVES EARNINGS BOTH.
-- THREE BACK TO BACK NEGATIVE EARNINGS QUARTERS.
VALUATIONS HAVE BEEN EXTENDED, BREATH AND HAVE SPEND NARROW.
SOME OF THE REASONS AND INVESTORS HAVE GONE BACK INTO
THE MARKET THEY DO HAVE THIS ALTERNATIVE SITTING IN CASH AND
CASH LIKE INSTRUMENTS IS BECAUSE SOME OF THE TECHNOLOGY
PLAYERS HAVE PROVIDED A COMPELLING REASON TO GET
INVOLVED. SCARLET: LET ME BROADEN OUT THE
CONVERSATION. THE EXCITEMENT OVER NVIDIA AND ANY COMPANY WITH TIES TO AI IS
PAPERING OVER WEAK SPOTS IN THE OVERALL MARKET AND THE ECONOMY. IT PUT -- FITCH PUT THE U.S.
MARKET ON A POSSIBLE DOWNGRADE ON ITS CREDIT RATING.
IS ANY OF THE THREE BIG CRAVINGS -- CREDIT COMPANIES
DOWNGRADING U.S. ENOUGH REASON TO SELL?
I WANT TO GET AHEAD OF -- >> INTERESTING QUESTION IS, THE
BASE CASE IS, THE U.S. DOES NOT DEFAULT ON ITS DEBT
AND BOTH SIDES OF CONGRESS COME TOGETHER IN A NEGOTIATED
RESOLUTION. WE HAVE SEEN HISTORIC PRESIDENT
FOR THAT, 78 TIMES CONGRESS HAS COME TOGETHER TO RAISE THE DEBT
CEILING SENSE 1960, 20 THIS TIME SINCE 2011 AND SIX OF
THOSE IS USING EXTRAORDINAIRE MEASURES.
THERE IS PRESIDENT FOR THAT AND WE THINK IT IS THE LIKELY
PASSPORT. IN THE MEANTIME -- LIKELY THE
PAST FORD. IN THE MEANTIME WE WILL GET
CONSTERNATION. THE PINCH -- FITCH WARNING IS
PART OF THAT. IF THE U.S. DOES DEFAULT ANY OF THE -- WE
WILL HAVE THINGS LIKE PAYMENTS TO KEY AREAS TO THE ECONOMY, SO
SECURITY, MEDICARE, DEFENSE, ETC.. THERE ARE REAL MEANINGFUL
IMPACTS OF THE DOWNGRADE AND THE DEFAULT ITSELF.
WE ARE HOPEFUL AS WE APPROACH THE BIG STATE, BOTH SIDES -- X
DATE, BOTH SIDES WILL COME TOGETHER, THEY WILL CONCEDE TO
SOME EXTENT AND WE WILL GET THE NEGOTIATED RESOLUTION. >> IF WE DO HAVE THE OUTSIDE
CASE A DEFAULT, EVEN IF WE DO NOT, SOME ECONOMISTS ARE SAYING
THIS BACK-AND-FORTH COULD PUSH US INTO A MILD RECESSION.
IF THAT DOES HAPPEN HERE, WHERE DO ROTATE YOUR INVESTMENTS?
BACK TO CASH? WHAT ARE YOU LOOKING AT IF THAT
IS A SCENARIO YOU CAN SEE THE NEXT 12 TO 18 MONTHS? GUEST: I THINK CERTAINLY THE MILD
RECESSION SCENARIO IS ONE THAT IS BAKED INTO MARKETS.
IF YOU LOOK AT THE BLOOMBERG CONSENSUS ESTIMATES Q3, Q4 TWO
BACK TO BACK QUARTERS THEY ARE CALLING FOR NEGATIVE GDP.
MINOR NEGATIVE, .5 PERCENT, STILL SUBZERO GDP FOR TWO
QUARTERS. THAT IS PROBABLY NOW THE WELL
ADVERTISED MILD RECESSION ON THE HORIZON.
IF WE DO GET MORE MEANINGFUL VOLATILITY AROUND THE DEBT
CEILING, THAT COULD CREATE FEEDBACK LOOPS AROUND THE
CONSUMER CALLS BACK. THERE IS HAVE IT -- HESITATION
TO INVEST IN SAFE HAVEN ASSET. THAT HAS IMPACTS AND RIPPLE
EFFECT THROUGH EQUITY AND BOND MARKETS.
IN THAT SCENARIO YOU WANT TO BE MORE DEFENSIVE.
DEFENSIVE STILL MEANS AREAS OF THE MARKET LIKE STAPLES, HEALTH
CARE, UTILITIES. STILL OVERWEIGHT SOME OF THOSE
CASH AND CASH LIKE INSTRUMENTS. THAT ARBEL BETWEEN THE EQUITY
AND THE BOND MARKET ON THE DEFECT -- BARBELL BETWEEN THE
EQUITY IN THE BOND MARKET ON THE DEFENSE SIDE.
IF THE ECONOMY GOES TO A MILD RECESSION AND LOOKS TOWARDS
RECOVERY THAT IS WHEN YOU REALLY THINK ABOUT A MORE
BROADENING PARTICIPATION. THE RECOVERY PLAYBOOK SHOULD
INCLUDE LEADERSHIP FROM AREAS LIKE SMALL-CAP STOCKS LIKE
INTERNATIONAL, EM EQUITIES AND ALSO OF COURSE LONGER DURATION
BONDS AND CYCLICAL. NOT JUST TECH LEADING THE WAY
WE DO THINK AS WE LOOK TOWARDS THE BACK HALF OF THE YEAR AND A
POTENTIAL RECOVERY, WE WILL HAVE A MORE SUSTAINABLE BROADER
LEADERSHIP IN THE MARKET AS WELL. SCARLET:
I HAVE TO ASK ONE LAST ONE ON TECH DID SEE DURING THE
PANDEMIC EURO COME -- ERA. BIG TECH WAS GAINING, DIGITAL
ADVERTISING, E-COMMERCE, WHEN THAT TIME PERIOD ENDED,
INVESTORS TURNED BACK TO THE FUNDAMENTALS, IS THERE A
RISKIER FOR BIG TECH NAMES THAT ARE GETTING A LOT OF LOVE THESE
DAYS -- RISK HERE FROM THE BIG TECH NAMES ARE GETTING A LOT OF
LOVE THESE DAYS. WE SEE A BIG SELLOFF AND THAT
SECTOR? >> THERE IS A CASE TO BE MADE
IN A CREDIBLE CASE THAT WE ARE GETTING INTO OVERBOUGHT
TERRITORIES. A PULLBACK IS NORMAL, HEALTHY
IN SOME CASES, GIVEN THE EXCESS MOVES WE HAVE SEEN.
THAT BEING SAID, IN AN ERA OF LOW GROWTH, LOW ECONOMIC GROWTH
INVESTORS DO TEND TO GRAVITATE TOWARDS HIGHER GROWTH PARTS OF
THE MARKET. ESPECIALLY THOSE WITH
DEFENSIBLE BUSINESS MODELS, STRONG FREE CASH FLOW AND THOSE
THAT ARE RETURNING VALUABLE -- VALUE TO SHAREHOLDERS TO
BUYBACKS. THERE IS PERHAPS CONSOLIDATION
VOLATILITY AHEAD. THE LONG-TERM PICTURE RE-THINK
LOOKS BALANCED AND HEALTHY -- WE THINK LOOKS BALANCED AND
HEALTHY FOR TECHNOLOGY. ALEX: THANK YOU FOR TAKING US THROUGH
TODAY AND TO THE FUTURE. WE APPRECIATE YOU JOINING US.
COMING UP WE WILL SPEAK TO THE CEO OF STRAT SCARLET:
IN THE 3D PRINTING WORLD STRATASYS AGREED TO ACQUIRE
DESKTOP METAL, GRITTING A LEADING COMPANY IN THE INDUSTRY
AT ONE POINT BILLION DOLLARS, JOINING US NOW IS -- 1.8
BILLION DOLLARS. JOINING US NOW IS THE CEO, YOUR
COMPANY REJECTED A COMPANY TAKEOVER OFFER FROM RIVAL
DIMENSION. YOU ARE GETTING READY TO BUY
DESKTOP METAL, WHY DOES THIS EXPENSE? -- MAKE SENSE? >> IT WILL RESHAPE THE INDUSTRY.
THE 3D PRINTING INDUSTRY IS FAILING TO DELIVER WHAT
MANUFACTURING REALLY NEEDS. THE COMBINATIONAL GREAT THE
SCALE TO DELIVER. SCARLET: WITH THAT SCALE OTHER CERTAIN
CLIENTS OR SLICES OF INDUSTRY YOU THINK YOU CAN SELL INTO NOW
THAT YOU ARE PULLING IN ADDITIONAL FUNCTIONALITY WITH
THE ACQUISITION? GUEST: DEFINITELY WE ARE LEADING IN
THE AEROSPACE AND AUTOMOTIVE MARKETS, WE ARE LEADING IN
DENTAL AND MEDICAL. WE DID NOT HAVE THE METAL
PARTS, WE'RE FOCUSING ON POLYMER.
TO GET THERE WE ARE SELLING TO THE SAME CUSTOMER THROUGH THE
SAME CHANNELS, MUCH BIGGER PER FOLIO, BROADER PORTFOLIO AND
VERY PROFITABLE TO LEDGER -- TO LEVERAGE OUR SCALE. >> WHEN YOU SAY PROBABILITY
TALK TO IS DAY ONE WHAT IS THE FINANCIAL IMPACT ON STRATASYS
FROM BRINGING THIS COMPANY INTO THE FOLD?
THE IMMEDIATE REVENUE BOOST, MARKET INCREASING? >> STRATASYS IS THE ONLY
PROFITABLE BUSINESS IN THE 3D PRINTING ARENA.
DESKTOP METAL ANNOUNCED THEY WILL BE PROFITABLE BY THE AND
OF THE YEAR. WHEN WE -- END OF THE YEAR.
WHEN WE COMBINED TOGETHER WE ARE THE FIRST $1 BILLION
COMPANY IN THE INDUSTRY. IN 2025 YOU WILL SELL 1.1
BILLION WITH A MARGIN OF 10 TO 12%. THIS IS NOT EXIST IN MANY
FACTION BECAUSE WE ARE NOT MATURE ENOUGH. ALEX:
I APPRECIATE YOU POINTING OUT THAT YOU ARE PROFITABLE AND A
LEADER IN THE SPACE, 3D PRINTING IS A FRAGMENTED SPACE
RIGHT NOW. GIVE US A SENSE, ONCE YOU
COMBINED WITH DESKTOP, THEY WILL BE ABLE TO BETTER COMPETE
WITH NOW BEYOND THE 3D PRINTING ECOSYSTEM? >> WE WILL BE BETTER EQUIPPED
TO COMPETE WITH THE ENTIRE SECOND-TIER BECAUSE WE ARE
NUMBER ONE. THE BROADEST PORTFOLIO,
UNMATCHED MATERIAL PORTFOLIO, MATERIAL AND SOFTWARE IS KEY IN
INDUSTRY, THOSE ARE TWO GENERATE THE PROFIT.
WHEN WE ARE COMING TO CUSTOMERS WE HAVE TWO HUGE ADVANTAGES,
ONE, WE ARE COVERING THE WHOLE TECHNOLOGICAL SPACE.
WE ARE SELLING -- IF THEY'RE NESTLING WITH THEY NEED, WE
SOME OF THE NEED. -- THE CUSTOMER DOES NOT NEED TO LOOK OUTSIDE OUR PLATFORMS.
SCARLET: ANOTHER ADVANTAGE YOU COULD
HAVE OR COULD TAP INTO IS THE SHAREHOLDERS OF DESKTOP. DESKTOP METAL WENT PUBLIC IN
2020 THROUGH ICEPACK, ONE OF THE BIGGEST SHAREHOLDERS IS
ALPHABET -- THROUGH A SPAC, ONE OF THE BIGGEST SHAREHOLDERS IS
ALPHABET WITH A 3% SHARE. DO YOU EXPECT TO WORK CLOSER? >> NO DOUBT WE WILL BENEFIT AND
COOPERATE WITH A GREAT SHAREHOLDER BASE.
IT IS A GROUP OF PEOPLE THAT BELIEVE IN INNOVATION, IT IS
BRINGING THE INNOVATION TO THE TABLE, WE ARE BRINGING THE
ESTABLISHMENT TO GO TOMORROW, THE INFRASTRUCTURE TO MAKE THIS
-- TO GO TO MARKET, THE INPUT STRUCTURE TO DELIVER VALUES TO
THE BEST MARQUEE CUSTOMERS THE WORLD. ALEX:
WHAT'S PHYSICALLY OR WE TALKING ABOUT WHEN YOU THINK ABOUT THE
ALPHABETS OF THE WORLD AND HOW THEY CAN LEND THE INNOVATIVE
SPIRIT TO YOU AS WELL? >> DESKTOP METAL, LOCATED IN
BOSTON. THEY ARE HIGHLY LINKED TO
M.I.T.. THAT IS THE ENTIRE STORY.
IT IS SO HARD TO FIND TALENT IN OUR INDUSTRY. THE ABILITY TO HAVE GREAT LINKS
AND ACADEMIA PLUS GREAT SHAREHOLDERS THAT ARE
INTERESTED IN BREAKTHROUGH TECHNOLOGIES.
I THINK IT IS A GREAT WAY FORWARD. ALEX: THANK YOU FOR WALKING US
THROUGH THIS ACQUISITION STRATASYS CEO.
MICROSOFT IS PUSHING BACK FORMALLY FILING TO APPEAL THE
U.K. DECISION TO BLOCK ITS MEGAMERGER WITH ACTIVISION
BLIZZARD. MORE ON THAT NEXT. THIS IS BLOOMBERG. KEEPING YOUR ION SHARES OF
SPLUNK REPORTING A FIRST QUARTER THAT NEED EXPECTATION
AND A SECOND QUARTER FORECAST HIGHER THAN ESTIMATES.
THE SHARES ARE RIGHT ABOUT UNCHANGED WE WILL CONTINUE TO
WATCH THROUGHOUT THE SHOW. THIS IS BLOOMBERG. ALEX:
IT IS TIME FOR TALKING TECH. FIRST UP GRAB CO-FOUNDER AT
STEPPING DOWN FROM HER OPERATIONAL ROLES IN THE
COMPANY AT YEARS AND. SHE STARTED THE COMPANY MORE
THAN A DECK IT AGO AND LAZY ECOLOGY AND CORPORATE STRATEGY GAMES -- TEAMS. MICROSOFT
PRESIDENT BRAD SMITH SAYS THE U.S. SHOULD MAKE A NEW AGENCY TO
REGULATE ARTIFICIAL INTELLIGENCE.
THE LICENSING REQUIREMENTS NECESSARY TO OPERATE THOSE AI
TOOLS. OUTLINING THE COMPANY POLICY
REGARDING AI AND ECHOING SENTIMENTS FROM OPENAI, SAYING
GOVERNMENT OVERSIGHT ENSURES THAT HUMANS WILL REMAIN IN
CONTROL OF THE TECHNOLOGY. OTHER MICROSOFT NEWS, THE
COMPANY HAS FILED AN APPEAL AGAINST THE U.K., AFTER THE
ANTITRUST AGENCY BLOCKED THE $69 BILLION DEAL TO BUY
ACTIVISION BLIZZARD. CMA SAYS IT STANDS BY ITS
DECISION, ARGUING WOULD LET MICROSOFT TO SET THE TERMS OF
THE MARKET. >> LOOK AT SHARES OF NINTENDO
THE LAST FEW WEEKS IT TOOK THREE DAYS FOR THE LATEST
INSTALLMENT IN THE LEGEND OF ZELDA FRANCHISE TO SELL MORE
THAN 10 MILLION COPIES WORLDWIDE.
4 MILLION IN THE AMERICAS WHERE THE NEW GAME BECAME NINTENDO'S
FASTEST SELLING GAME EVER. FROM NEW YORK AND SAN FRANCISCO.
THIS IS BLOOMBERG. ALEX: WELCOME BACK TO "BLOOMBERG
TECHNOLOGY." SCARLET: LET'S GET A CHECK ON THE
MARKETS RIGHT NOW. THE NASDAQ IS FLYING HIGH THE
MOMENT THINGS TO NVIDIA'S BLOWOUT SALES FORECAST ON THE
BACK OF DEMAND FOR ITS AI CHIPS. YOU LOOK AT THE INDEX, THAT HAS
THE -- NEW YORK FANG INDEX WITH THE BIGGEST WAITING, -- TRADERS
BETTING AGAINST NVIDIA HAVE SUFFERED MASSIVE LOSSES, $2.3
BILLION PAPER LOST JUST ON THE DAY ALONE, BECAUSE OF THE BIG
SPIKE HIGHER. ON THE DOWNSIDE YOU HAVE ETF
THAT TRACKS SHORTER DURATION TREASURIES.
ONE TO THREE YEAR MATURITIES, IS DOWN 18% ON THE DAY.
WHEN THERE IS A SELLOFF IN BONDS YIELDS GO OUT, AND THAT
IS WHERE I WANT TO GO NEXT. THE DEBT CEILING DRAMA
DOMINATES AS THE MARKET IS OVERALL HIGHER TODAY.
LOOK AT THIS CHART. A SNAP SHOT OF THE U.S.
GOVERNMENT CHECKING ACCOUNT. THE AMOUNT IT HAS ON HAND TO
PAY ITS BILLS. INTEREST ON HIS DENT OR PAYING
OUT SOCIAL SECURITY CHECKS. TUESDAY AFTERNOON TO HAD ABOUT
$76 BILLION THAT WAS HIGHER IN MID APRIL, WE CAN SEE THE
LITTLE BLIP IN THE LAST PART OF THE CHART WAS A RESULT OF
PEOPLE AND COMPANIES PAYING THEIR TAXES.
TREASURY SECRETARY JANET YELLEN HAS IDENTIFIED JUNE 1 AS THE
DATE THE GOVERNMENT MAY RUN OUT OF MONEY TO ON RISK OBLIGATIONS
-- TO HONOR ITS OBLIGATIONS. IT WILL DROP BELOW 30 BILLION
FOR JUNE 8 THROUGH JUNE 9, THAT IS THE BARE MINIMUM FOR MEETING
OBLIGATIONS. >> WHILE THE NEGOTIATIONS
PROCESS TO THE RISK OF THE FAULTING FOR THE FIRST TIME IS
GROWING. THAT IS WHY WE MORE THAN 140
CEOS ON WALL STREET EXECUTIVE HAVE SOUNDED THE ALARM BELLS.
IN A LETTER TO THE PRESIDENT AND CONGRESSIONAL LEADERS, THE
GROUP WROTE THAT HIGH INFLATION CREATED STRESSES IN OUR
FINANCIAL SYSTEM INCLUDING SEVERAL RECENT BANK FAILURES.
MUCH WORSE WILL OCCUR OF NATION DEFAULTS ON OUR DEBT LEGATIONS.
WE STRONGLY URGE THAT IN ACCORD BE REACHED QUICKLY SO THAT THE
COUNTRY CAN AVERT THIS POTENTIALLY DEVASTATING
SCENARIO. JOINING US NOW WITH MORE
INSIGHT WITH CHARLES PHILLIPS, MANAGING PARTNER AND COFOUNDER
OF RECOGNIZED PARTNERS. ONE OF THE MANY THAT SIGNED THE
LETTER. THAT WAS SENT MAY 16. IT HAS BEEN A FEW DAYS SINCE
THEN WE HAVE HAD HEADLINES CROSSED LIKE SPEAKER KEVIN
MCCARTHY SAY TODAY I DID NOT KNOW IF WE WILL HAVE A DEAL
TODAY, HE SAID YESTERDAY THEY NEED 72 HOURS, THEY WILL HAVE
THE 72 HOURS TO REVIEW AND PASS ANY BILL THAT DOES COME THROUGH.
HOW DOES THE URGENCY CHANGE SINCE YOU AND YOUR FELLOW CEOS
AND LEADERS WROTE THAT LETTER JUST A LITTLE OVER A WEEK AGO? >> THERE IS A REASON THE MARKET
ARE STARTING TO REACT. YOU CAN SEE THE CREDIT DEFAULT
SWAPS SPREADS ARE CHANGING. IT JUST SO HAPPENS, THAT WE
HAVE A BUNCH OF TECHNOLOGY COMPANIES THAT HAVE AN ANNUAL
MEETING THIS WEEK. ALL THE COMPANIES WERE IN, ALL
THE INVESTORS WERE INCOME NORMALLY TALK ABOUT OPERATIONAL
AND PREVENTS NOW YOU HAVE TO TALK ABOUT THIS -- OPERATIONAL
IMPROVEMENTS AND NOW WE TALK ABOUT THIS.
WE HAD A BANKING CRISIS, NOW WE HAVE TO DEAL WITH THIS.
WILL THE COST OF CAPITAL BE HIGHER IN THREE MONTHS, SIX
MONTHS? THE PLANNING ASPECT OF THIS IS
WREAKING HAVOC ON PEOPLE. THE UNCERTAINTY IS SOMETHING
PEOPLE DID NOT LIKE DEALING WITH RIGHT NOW. ALEX:
THAT IS INTERESTING THAT YOU HAVE THESE MEETINGS AND IT
KEEPS COMING UP. HOW TO THE DEBT LEADERS AND
EXECUTIVES PLAN AROUND THIS OR THROUGH THIS? GUEST:
WE DO NOT USE A LOT OF LEVERAGE IN OUR PURPLE TIER WE HAVE SOME
COMPANIES BUT IT MADE US THINK -- IN OUR PORTFOLIO, WE HAVE
SOME COMPANY'S BUT WE HAD TO THINK DIFFERENT THE ABOUT IT.
FEWER DEALS GET DONE OR GET DONE 80 DIFFERENT PRICE.
PSYCH -- AT A DIFFERENT PRICE. WE RELY ON STATE AND LOCAL
BUDGETS. THEY CANNOT ON THE
INFRASTRUCTURE -- FIND THE INFRASTRUCTURE THAT WE NORMALLY
RELY ON. WE HAVE IT RIPPLED DOWN TO THE
STATE AND LOCAL LEVEL AS WELL. >> THAT IS INTERESTING AND
SOMETHING PERHAPS A LOT OF LAWMAKERS IN WASHINGTON MAY NOT
BE IMMEDIATELY AWARE OF. IN YOUR CURRENT ROLE YOUR
AROUND ANGELA NORA'S ALL THE TIME, LEARNING TO -- AROUND
ENTREPRENEURS A LOT OF THE TIME. WHAT DO YOU THINK CONGRESS DOES
NOT FULLY UNDERSTAND ABOUT HOW THE ACTIONS REVERBERATE THROUGH
THE PRIVATE SECTOR? >> THE U.S.
BRAND AROUND THE WORLD ACCRUES TO EACH OF OUR COMPANIES, WE
ARE YOU AS UNDERSTANDING BUSINESS, VERY INNOVATIVE,
COMING FROM A ECONOMY THAT IS ROCKSOLID, RISK-FREE, AND HAS
FISCAL DISCIPLINE. WE BENEFIT FROM THAT BRAND.
WHEN YOU QUESTION THAT, YOU GET A CERTAIN -- AROUND THAT.
PEOPLE BELIEVE THAT WE KNOW WHAT WE'RE DOING BECAUSE WE ARE
FROM THE U.S.. THE BRAND ASPECT PEOPLE DO NOT
QUITE UNDERSTAND IT HURTS ALTHOUGH THERE COMPANIES.
-- ALL OTHER COMPANIES. >> THE REPUTATIONAL RISK IS
INTERESTING, I AM CURIOUS WITH YOU AS AN INVESTOR YOURSELF,
RECOGNIZE, DOES THAT REPUTATIONAL RISK OF THESE
CHAOTIC CONVERSATIONS, OF THE BANKING CRISIS THAT WENT ON
WITH SOME OF THE IMPORTANT FUNDERS OF PLACES LIKE THE TECH
CENTER -- SECTOR LIKE SVB. DOES THE REPUTATIONAL RISK
POSED CHALLENGES FOR U.S. YOU LOOK AT YOUR GROWTH
INVESTMENTS GOING FORWARD? >> WE ARE COMPETING WITH OTHER
INVESTORS AROUND THE WORLD. WE WANT TO LOOK LIKE WE HAVE AN
EDGE. PART OF IT IS THE OPERATIONAL
BACKGROUND. PART OF IT IS THE U.S..
PART OF IT IS A LOWER COST OF CAPITAL.
IF ANY OF THOSE BREAKDOWN YOU DO NOT LOOK AS STRONG AS YOU
LOOK OTHERWISE. PEOPLE ASKING THE QUESTION,
WHAT IS GOING ON OVER THERE? I THINK THE IMPLICATIONS FOR
THE JOB MARKET, IN GENERAL. IF YOU CANNOT PAY OUR BILLS, SO
SECURITY, MILITARY, THESE THINGS START TO BREAK DOWN IT
LOOKS LIKE CHAOS TO EVERYBODY. PEOPLE THOUGHT THIS COULD NOT
REALLY HAPPEN, MAYBE THEY'RE PLAYING A GAME OF CHICKEN BUT
THEY ALWAYS WORK IT OUT. NOW YOU NEVER KNOW BECAUSE
THINGS HAVE GOTTEN SO PARTISAN. IT COULD ACTUALLY HAPPEN.
THAT IS WHAT IS DIFFERENT NOW. THIS COULD BE A THING THAT
HAPPENS. ALEX: DO YOU START LOOKING
GEOGRAPHICALLY TO REGIONS OUTSIDE THE U.S.
WHERE COMPANIES ARE NOT SITTING IN A ROOM AND HAVING TO COPE
WITH UNCERTAINTY OR A PAUSE IN INNOVATIVE STRATEGIES BECAUSE
THERE IS TOO MUCH CHAOS POTENTIALLY LOOMING FOR THE
ECONOMY IN THE U.S.? GUEST: WE HAVE ALWAYS BEEN LEVEL.
WE HAVE COMPANIES IN UKRAINE, LATIN AMERICA, ALL OVER THE
WORLD. WELL INTO WHERE WE COULD BE
INVESTING DOESN'T MAKE THE U.S. LOOK AT LESS ATTRACTIVE THAN IT
WOULD OTHERWISE? SURE, THAT IS LIKE ANY OTHER
GLOBAL INVESTORS. CAPITAL CAN FLOW ANYWHERE. >> YOU SERVED ON PRESENT
OBAMA'S ECONOMIC -- PRESIDENT OBAMA'S ECONOMIC RECOVERY BOARD
AND ON THE FED. HOW DO YOU THINK THE 2023 DEBT
CEILING STANDOFF DIFFERS FROM WHAT WE HAVE SEEN IN THE PAST?
OR IS THIS BUSINESS AS USUAL? GUEST:
THIS ONE SEEMS MORE SEVERE, IT WAS SHORTER IN 2011, WE LOST
2.4 TRILLION IN MARKET CAP. THIS COULD GO ON LONGER BECAUSE
THE SIZE OF IT IS SO MUCH LARGER.
WE HAD CERTAIN A THAT PEOPLE HAD TO WORK IT OUT, THEY DID
NOT WANT TO HAPPEN. WE ARE NOT SURE OF IT RIGHT NOW.
IT MAKES IT SEEM IT IS WORSE THAN IT IS. ALEX:
THANK YOU FOR BREAKING DOWN THE PRIVATE SECTOR IMPLICATIONS FOR
US. THANK YOU TO CHARLES PHILLIPS
MANAGING PARTNER AND COFOUNDER OF RECOGNIZED PARTNERS.
COMING UP THE IMPACT OF GENERATIVE AI ON RETAIL. WE WILL DISCUSS ALL THAT AND
MORE WITH CEO OF BUY NOW PAY LATER KLAMA.
WE ARE WATCHING SHARES OF BEST BUY, FIRST QUARTER PROFITS, TOP
ESTIMATES, AND THE COMPANY RE-ANNUAL -- REITERATED ITS
ANNUAL TARGET. THEY SAID THIS YEAR WAS THE
BOTTOM OF DECLINE IN TECH DEMAND. THIS IS BLOOMBERG. ALEX:
DOES NOT TAKE A LOOK AT THE FUTURE OF RETAIL THAT COULD BE
MORE PERSONALIZED AND TECH BOAST IN THE CONTEXT OF THE
GENERATIVE AI REVOLUTION. THAT IS THE PROJECTION LAID OUT
IN THE KLAMA RETAIL REPORT. THE CEO JOINS US NOW FOR US --
ON THIS. YOU LOOK AHEAD TO HELP PEOPLE
WILL OPEN THEIR POCKETBOOKS HOW WILL AI SHOW ITSELF IN TERMS OF
HOW PEOPLE ARE SPENDING IT RETAIL. GUEST: FIRST OF ALL, I TRIED THIS IN
NOVEMBER, WHEN IT STARTED TRENDING IN TWITTER.
I SAID WHAT IS THIS THING? IT WAS MAGIC TO ME.
I FELT LIKE WHEN I OPENED UP THE INTERNET THE FIRST TIME 20
YEARS AGO. IT FELT SUPER IMPRESSIVE.
WE INSTANTLY GOT IN TOUCH WITH SAM AND I SAID LOOK I WANT
KLAMA TO BE YOUR FAVORITE GUINEA PIG OVER AT OPENAI, THAT
IS THE WAY TO DO THESE THINGS WE SEE DRAMATIC SHIFT THIS. I CODED MYSELF, WHEN MY BIGGEST
REGRETS IS I NEVER BECAME AN ENGINEER.
WITH THAT SAID, WHAT IS CLEAR, THE TOOLS OUT THERE, THE
APPLICATIONS THAT ARE CHANGING ANGST ARE NOT YET.
THEY WILL COME IN NEXT SIX TO 12 MONTHS WE WILL ALL SEE
BETTER SHOPPING EXPERIENCES. SHOPPING ASSISTANCE, PROVIDING
YOU A HIGH CONVERSION RATE FOR RETAILERS. ASSISTING CONSUMERS TO FIND
BETTER PRICES, BETTER OFFERS, ETC., I EXPECT TO SEE A
EXPLOSION OF NEW TOOLS AND SOURCES, NEXT 12 MONTHS TO
UTILIZE THE TECHNOLOGY TO PROVIDE A MUCH RICHER AND MUCH
MORE ACCURATE EXPERIENCE FOR CONSUMERS.
SUPER SUPER INTERESTING TO FOLLOW.
ALSO THERE SEEMS TO BE, THE STUDIES OF OUR SHOW, A HUGE BIG
OPENING ON CONSUMERS. THEY ARE WILLING TO TRY AND
TEST THESE THINGS, THEY BELIEVE CAN MAKE A DIFFERENCE. ALEX:
WHEN I THINK ABOUT THE EVOLUTION OF RETAIL WE HAD THE
MALL START TO BRING THINGS TOGETHER ON A REGIONAL BASIS OR
A TOWN-BASED BASIS. THEN WE HAD ONLINE SHOPPING WE
CAN BUY ANYTHING FROM ANYWHERE. E-COMMERCE PLAYERS SHOWED UP.
IT HAS EVOLVED TO WHERE YOU HAVE ALMOST TOO MUCH CHOICE.
IF YOU LOG ONTO AN E-COMMERCE PLATFORM IT IS HARD TO NARROW
DOWN IF YOU DO NOT KNOW EXACTLY WHAT YOU'RE LOOKING FOR.
IS THAT A PROBLEM YOU EXPECT? SOME OF THE EARLY APPLICATIONS
MIGHT BE A LOW HANGING FRUIT TO SOLVE WHEN IT COMES TO BRINGING
AI IN. PERHAPS TO HELP FOLKS DISCOVER
THINGS ON THEIR PREFERENCES MORE EASILY. GUEST:
YOU ARE SPOT ON. REMEMBER WHEN YOU WERE LIVING
IN A SMALL CITY? THERE WAS ONE DEPARTMENT STORE.
THEY HAD NICELY CURATED EVERYTHING NEEDED TO BUY FOR US.
EVERYTHING WAS THERE, YOU DON'T NEED TO LOOK ELSEWHERE.
NOW YOU ARE OVER WALKED -- OVERWATCH WITH EVERYTHING. YOU THINK ABOUT THE PRODUCTS,
THE DURATION COMING THING ABOUT THE TECHNOLOGY, THE LOGISTICS
TO BRING THE TECHNOLOGY TO THE CONSUMER. ON THE CURE RATION SIDE COME --
DURATION SIDE HAS GONE CRAZY. YOU HAVE SEEN INSTAGRAM PEOPLE
TRYING TO INFLUENCE PEOPLE. INFLUENCERS RECOMMEND PRODUCTS.
RETAILERS, THE BRANDS THEMSELVES TRYING TO CURATE.
CURE RATION TO A POINT IS A HUGE OPPORTUNITY.
WE LAUNCHED SEARCH IN THE U.S.. THERE HAS BEEN NO ONE LAUNCHING
SEARCH IN THE U.S. AGAINST AMAZON FOR THE LAST 15
YEARS. WE SEE TREMENDOUS TRACTION TO
REINVENT PRODUCT SEARCH. HOW DO YOU HAVE INTENT DRIVEN
DISCOVERY AT THE RIGHT PRODUCT IN THE RIGHT PRICE, ETC., BUT
ALSO THE INSPIRATIONAL. THAT IS THE AREA, CURE RATION
IS CRITICAL. IN CHINA, IT USED TO BE 80%
SEARCH, 20% RECOMMENDATION BY AI. 80% OF OUR PEOPLE BY ON TEEMU
IS AI RECOMMENDATION, NOT SEARCH ANYMORE.
THAT SHOWS YOU WHAT TECHNOLOGY CAN MEAN AS A SHIP. ALEX:
GOOGLE CEO WROTE AN OP-ED RECENTLY THAT BUILDING AI
RESPONSIBLY IS THE ONLY RACE THAT MATTERS INSTEAD OF
BUILDING UP AI CHOPPED. HE BROUGHT IN REGULATION.
WHAT DO YOU SEE AS THE POTENTIAL PROBLEMS OR PITFALLS
FOR AREAS THAT MIGHT BE CONCERNING THAT RESULT FROM THE
USER INTEGRATION OF AI IN SHOPPING IN YOUR WORLD? >> AS YOU ARE A PAYMENT
COMPANY, FRAUD IS A BIG ASPECT, THERE IS INDICATIONS ON FRAUD
PROTECTION. I THINK ON A SOCIETY LEVEL, AS
A SOCIETY, I RESPECT THAT A LOT WHEN I SPEAK TO PEOPLE.
TECH LEADERS. I AM HAPPY TO HEAR THEM PROMOTE
THE AMAZING OPPORTUNITIES IT PRESENTS BUT ALSO HIGHLIGHT THE
RISKS. THAT IS MORE FROM A SOCIETY
PERSPECTIVE. IF I THINK MORE OF MY BUSINESS
I THINK THERE IS ONE CRITICAL THING THAT COULD ACTUALLY MAKE
A HUGE DIFFERENCE. IN SOME MARKETS IN EUROPE,
SWEDEN IS A GOOD EXAMPLE, BASED CURRENTLY, WE HAVE ELECTRONIC
IDENTIFICATION THAT IS AVAILABLE TO EVERYONE EVERYONE
HAS IT ON THE PHONE. THAT MEANS THERE IS NO FRAUD.
THERE IS NO PROBLEMS WITH PEOPLE PRETENDING TO BE SOMEONE
ELSE. THERE IS MUCH LESS FRAUD THAN
IN MANY OTHER MARKETS WE SEE. IT IS A CINCH -- SIMPLE THING,
A DIGITAL PATH FOR JULY DEFECATION. AND NOT -- DIGITAL
IDENTIFICATION. IF I CHAT WITH SOMETHING I NEED
TO KNOW IF IT IS A HUMAN OR COMPUTER.
YOU HAVE THE RESPONSIBILITY BE TRANSPARENT ABOUT THAT.
THOSE JUICE OF THE THINGS THAT COULD MITIGATE SOME THE EARLY
RISKS -- THOSE ARE TWO SIMPLE THINGS I COULD MITIGATE THE
EARLY RISKS, CHANGES. SCARLET: THERE ARE PEOPLE OUT THERE
SAYING KLARNA IS PIVOTING TO AI AND REGULATION TO AI AS
REGULATION COMES FORTH TO BUY NOW PAY LATER IN AUSTRALIA AND
THE U.K.. HOW WOULD YOU RESPOND TO THAT?
GUEST: FORGET IT. BY NOW PAY LATER IS A FANTASTIC
CREDIT PRODUCT FOR CONSUMERS. EVERYONE SHOULD WATCH, HIM
EXPLAIN ON NETFLIX. YOU GET A 25 MINUTE SUMMARY OF
ALL THE BAD PRACTICES. ALL THINGS ANGST DO WITH CREDIT
CARDS, THE BUILDUP THE -- BANKS DO WITH CREDIT, TO BUILD UP THE
BIGGEST ALLEN'S -- BALANCE. IT IS INTEREST-FREE, IT IS
FIXED INSTALLMENTS, WE DO NOT PUSH IT IN YOUR FACE TO MAKE
YOU BELIEVE YOU CAN SPEND MORE THAN YOU HAVE.
WE ARE TRYING TO BUILD A RESPONSIBLE CREDIT CARD.
IT IS STILL CREDIT. ALL CREDIT HAS RISKS AND NEEDS
TO BE OFFERED IN A RESPONSIBLE WAY.
AS A CREDIT FORM IT IS SUPERIOR TO THE CREDIT CARDS.
IT IS BETTER FOR US IN AN UNCERTAIN ECONOMIC ENVIRONMENT.
WE UNDERWRITE EVERY TRANSACTION. WE SEE 40% BELOW CREDIT CARD
TRANSACTION LOSSES. HALF MY BALANCE SHEET IS
UNDERWRITING THE NEW METHODOLOGY.
I CAN QUICKLY CHANGE TO AN ECONOMIC ENVIRONMENT LIKE THIS
ONE. BANKS WILL WAIT TWO YEARS BEFORE THEY SEE A SHIFT IN THE
BALANCE SHEET DUE TO CHANGES IN UNDERWRITING. ALEX:
ONE MORE QUICK WHEN ON AI BECAUSE WE HAVE BEEN TALKING
ABOUT THAT. THE RACE IS ON, THE RACE IS ON
FOR TALENT. YOU JUMPED IN QUICKLY TO WORK
WITH OPENAI. WHAT DOES HIRING LOOK LIKE
INTERNALLY AT KLARNA? WHERE YOU FIND THE INDIVIDUALS
TO MAKE SURE THAT TYPE OF TECHNOLOGY CAN BE SEAMLESSLY
TESTED, INTEGRATED INTO WHAT YOU ARE WORK -- ROLLING OUT FOR
CONSUMERS. >> I THINK IT IS OBVIOUSLY AN
IMPORTANT QUESTION, OBVIOUSLY DATA SCIENTISTS ARE IN HIGHER
DEMAND. I WANT TO GET AGAIN HOW MUCH
THIS IS JUST ABOUT CURIOSITY. ENCOURAGING PEOPLE WITHIN YOUR
CULTURE TO INNOVATE AND TRY AND TEST. ONE WAY I MEASURE RIGHT
NOW, KLARNA'S AI INVOLVEMENT. WE OFFER THEM A CHAT GDP FOR --
4 AI POWERED ACCOUNT. WE ARE AT -- I WANT TO GET THE
5000. I WANT EACH ONE OF THEM TO EXPERIMENT AND LEARN TO UTILIZE
THE TECHNOLOGY. IT TOOK YEARS FOR PEOPLE TO
DISCOVER THE POWER OF GOOGLE 20 YEARS AGO HOW IT CAN SAVE YOU
TIME, MORE PRODUCTIVE. ONE SHOULD NOT OVERESTIMATE --
UNDERESTIMATE, ENCOURAGING PEOPLE. SCARLET: IS ABOUT EXPERIMENTING AND
ENGAGING RIGHT NOW BEFORE WE DRAW BIG CONCLUSIONS.
REALLY THANK YOU FOR JOINING US THE CEO OF KLARNA JOINING US.
COMING BACK HERE TO THE U.S. RON DESANTIS'S CAMPAIGN
ANNOUNCEMENT ON TWITTER WAS BESET BY TECHNICAL GLITCHES.
MORE ON THAT NEXT. THIS IS BLOOMBERG.
AS WE HAD TO BREAK, KEEPING AN EYE ON SHARES OF PALANTIR AS
THEY SAID THEY WOULD HELP DEEPEN RELATIONSHIPS TO
RECONSTRUCT INFRASTRUCTURE. THEY'VE BEEN WORKING WITH THE
CRANE SINCE LAST YEAR PROVIDING SOFTWARE AND INCORPORATING AI
TECHNOLOGIES TO EMPOWER BATTLEFIELD DECISION-MAKING. SCARLET:
FLORIDA GOVERNOR RON DESANTIS'S LIVE EVENT -- ON TWITTER, WAS
PLAYED BY TECHNICAL GLITCHES. LED TO HIS ANNOUNCEMENT BEING
POSTED ON VENTURE CAPITALIST DAVID SACHS INSTEAD. >> THAT WAS INSANE.
SORRY WE ARE DOING THIS FROM DAVID SACHS'S TWITTER ACCOUNT.
LOOKS LIKE DOING IT FROM MINE BROKE THE TWITTER SYSTEM.
SCARLET: JOINING US NOW TO BREAK DOWN
THE LAUNCH OF HIS PRESIDENTIAL RUN ON TWITTER IS SARAH.
HOW MUCH OF THIS TECHNICAL TRAIN WRECK CAN YOU TIED
DIRECTLY TO ELON MUSK'S STAFF FIRINGS AND VARIOUS COST CUTS? >> THEY DID NOT HAVE A LOT OF
THE PEOPLE THEY USED TO HAVE WERE WORKING ON THIS KIND OF
INFRASTRUCTURE STABILITY. THEY GOT RID OF THE USE OF THE
DATA CENTER THEY HAD IN SACRAMENTO THAT INCREASED THE
STRESS ON THE SYSTEM, THEY HAVE BEEN MAKING PRODUCT CHANGES.
THOSE FACTORS PLUS THE FACT, THEY DID NOT REALLY PREPARE FOR
THIS MOMENT, IT SEEMS, THEY DID NOT STRESS TEST THEIR SYSTEMS
OR THIS WOULD'VE NOT HAPPENED. >> I WAS TUNING IN YESTERDAY,
ELON MUSK SAID HOPEFULLY THIS WOULD BE A PLATFORM WITH PEOPLE
OF DIVERGENT POLITICAL VIEWS TO EXCHANGE THOSE VIEWS.
IN THE COURSE OF THAT CONVERSATION DID THEY PUT
DIVERSE CLINICAL VIEWS ON DISPLAY -- POLITICAL VIEWS ON
DISPLAY WITH RON DESANTIS? >> ABSOLUTELY NOT.
IT WAS PEOPLE FAVORABLE TO THE DESANTIS CAMPAIGN.
THIS COULD BLOWBACK ON MUSK. HISTORICALLY SOCIAL MEDIA
EXEC'S HAVE NOT TRIED TO ALIGN THEMSELVES WITH A PARTICULAR
COMPANY. THEY TRY TO BE NEUTRAL TO GET
THE WIDEST POSSIBLE USER BASE AND WIDEST POSSIBLE SET OF
ADVERTISERS SPENDING MONEY TERESA'S USERS.
IF TWITTER POSITIONS ITSELF, THAT WE ARE MORE FRIENDLY TO
ONE POLITICAL PARTY OVER THE OTHER, I DO THINK SOME
ADVERTISERS WILL SHY AWAY FROM THAT.
I DID SEE, THE NEW CEO, AND THE ROOM. SHE WAS THERE. >> SO WERE YOU. >> SHE COULD FIX IT, MAYBE WE
WILL SEE. ALEX: THANK YOU FOR WRAPPING THAT UP
FOR US, DAVID SACHS WILL BE JOINING US ON BLOOMBERG TV TO
TALK ABOUT THIS MORE. THAT DOES IT FOR THIS EDITION
OF "BLOOMBERG TECHNOLOGY," DO NOT FORGET TO CHECK OUT THE
PODCAST ON THE TERMINAL,
