>> FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER
COLLIDE ABSOLUTE, VALLEY AND BEYOND, THIS IS BLOOMBERG
TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE:
ED LUDLOW IS ON ASSIGNMENT. THIS IS BLOOMBERG TECHNOLOGY.
CHINA, U.S. TECH TENSIONS BUILD AS JANET
YELLEN -- EVERYTHING FROM EV TO SEMICONDUCTORS.
WE WOULD -- WILL DISCUSS THE SIGNIFICANCE. WE HAVE AN EXCLUSIVE INTERVIEW
WITH THE CEO AND A NEW LAW COMES INTO EFFECT TODAY IN
TARGETING AI AND HIRING IN NEW YORK CITY.
WE WILL BRING YOU THE DETAILS AS N.Y.C. SEEKS TO CUT BY ITS --VUT CUT
BIAS. YOU WILL TALK ABOUT ECONOMIC
IMPACT OF A SLOWING SERVICES GROWTH. EUROPE WAS LOWER AND WE ARE
SEEING THE ALL COUNTRY INDEX DOWN BY 4/10 OF A PERCENT. NOW IT GETS A LITTLE BIT LOWER
AS WE ALSO DRAG DOWN SOME OF THE BIG TECH NAMES EVEN WHEN
MEDA FIGHTS THE GOOD FIGHT AND WE ARE LOOKING AT MEDA AND
GORDON DRAGON. I AM LOOKING AT TENCENT ALL ON
THE DOWNSIDE AND IT IS SHOWING SOME WORRIES ABOUT THE WEAKNESS
IN THE CHINESE ECONOMY. LET'S LOOK AT THE INDIVIDUAL
MOVEMENTS. META PLATFORMS OUTPERFORMING IN
TERMS OF TRYING TO PULL OUT THE REST OF THE TECH INDICES. WE HAVE THE THREATS, THE NEW
TWITTER TAKE ON FROM MEDA THAT WILL BE LAUNCHING TOMORROW. RIVIAN ALSO GETTING A BIT UP
1.4% AS THEY EXPORT THEIR TRIPS TO EUROPE.
A KEY PLAYER WHEN IT COMES TO AMAZON.
WE WILL GO TO AT LOW AS HE HAS A GREAT INTERVIEW COMING UP AND
I AM LOOKING AT THE CHIP SECTOR BECAUSE THIS HAS ALL TO DO WITH
GEOPOLITICS AND ALL TO DO WITH THE WORDS OF THE KEY METALS,
THE RARE EARTH THAT CHINA IS LEARNING TO THE U.S.
WILL HAVE AN IMPACT ON THE LIKES OF INTEL, ON THE DOWNSIDE.
WE ARE OFF BY 1.6% IF YOU'RE LOOKING AT THE OVERALL STOCK
INDEX. FOCUS ON SHIPS. --CHIPS. JANET YELLEN IS VISITING CHINA
TRYING TO FIND AREAS OF COMMON ECONOMIC GROUND.
JUST DAYS AFTER CHINA IMPOSED THOSE REJECTIONS ON EXPORTING
KEY METALS THAT ARE CRUCIAL TO TECHNOLOGY INDUSTRIES AND THERE
ARE REPORTS FROM THE WALL STREET JOURNAL THAT IS REALLY
THAT THE U.S. INITIATION MIGHT LIMIT CHINA'S
ACCESS TO CAR COMPUTING TECHNOLOGIES.
KAILEY LEINZ JOINS US FROM WASHINGTON AND WHAT AN
IMPORTANT TIME FOR JANET YELLEN TO BE GOING OVER BUT IT FEELS
THAT TENANT -- TENSIONS HAVE DOUBT UP -- DIALED UP? MICHAEL: THIS IS A TRIP -- KAILEY:
THIS IS A TRIP THAT TREASURY SECRETARY JANET YELLEN HAS BEEN
ATTEMPTING TO MAKE. SHE HAS BEEN ELUDING FOR MONTHS
THAT SHE WOULD LIKE TO OPEN THE LINES OF COMMUNICATION AND MEET
THE NEW CHINESE VICE PREMIER. SHE LEAVES TODAY AND WILL
ARRIVE TOMORROW. SHE IS THERE FOR A FEW DAYS IN
BEIJING. THE BARK SEEMS TO BE SET LOW
AND JANET YELLEN SAYS EVERY TRIP SHE MAKES WILL BE ABOUT
INTRODUCTIONS AND GETTING TO KNOW EACH OTHER AND A TREASURY
OFFICIAL SAYS THEY DON'T EXPECT ANY MAJOR BREAKTHROUGHS BUT THE
POINT IS SHE IS GOING TO BE THERE IN PERSON AND THIS IS
SOMETHING THE ADMINISTRATION IS TRYING TO DO, REESTABLISH
RELATIONS IN A BETTER WAY WITH BEIJING.
WE SAW ANTONY BLINKEN RAKING HIS OWN TRIP THERE BUT IN THE
LEAD UP TO IT, THE FACT WE ARE SEEING THIS TIT-FOR-TAT ACTION,
THE U.S. AND THE BIDEN ADMINISTRATION
LOOKING AT BY THE END OF THIS WHAT -- MONTH, AN EXECUTIVE
ORDER ON OUTBOUND U.S. INVESTMENT INTO CHINA, THE
CLOUD COMPUTING SERVICES RELATED TO THAT SUPPORT AND THE
RESTRICTION OF THE TWO KEY METALS IN PLACE. >> ALL OF THIS HAS AN ECONOMIC
IMPACT. IS IT ONE THAT TREASURY SECRETARY JANET YELLEN IS
WORRIED ABOUT? IS HE FEELING THAT HER ROLE IS
EVEN GLOBAL THAN THAT BECAUSE SHE IS LOOKING TO CHINA TO
REDUCE SOME OF THE DEBT BURDENS ON OTHER COUNTRIES. KAILEY:
THAT IS TRUE AND WE ARE TALKING ABOUT THE TWO LARGEST ECONOMIES
IN THE WORLD. SO WHATEVER HAPPENS TO CHINA'S
ECONOMY WILL ALSO HAVE AN IMPACT ON THE U.S.
ECONOMY AND SHE HAS CHARACTERIZED BACK IN APRIL,
HER STRATEGY WHEN IT COMES TO CHINA WHEN IT COMES TO WANTING
TO PROTECT NATIONAL SECURITY INTEREST WHILE NOT NECESSARILY
TRYING TO IMPACT CHINA ECONOMICALLY AND PUSHING BACK
AGAINST THE IDEA OF DECOUPLING. ISSUES THAT SHE WILL RAISE
INCLUDE THINGS OF CHINA'S ROAD LEAVING THE DEBT BURDEN FOR
SOME COUNTRIES. THINGS LIKE TRADE AND THE
GLOBAL ECONOMY LIKELY TO COME UP.
THAT IS WHERE IT COMES DOWN TO CHINA'S ACTION ON THESE TWO
METALS, WHICH ARE USED FROM EVERYTHING FROM EV'S TO SPACE
SATELLITES. THAT IS AN ISSUE ON RESTRICTING
EXPORTS AND CERTAINLY A ROLE PLAYED IN THE RATCHETING UP OF
TENSIONS BETWEEN CHINA AND ITS TRADING PARTNERS AND ALL OF
THESE THINGS COULD HAVE ISSUES ON THE COST OF GOODS AND THE
ECONOMY AND IMPLICATIONS FOR UNLIKELY THINGS THAT TREASURY
SECRETARY IS GOING TO CONCERN HERSELF WITH. CAROLINE:
GREAT ROUNDUP. I KNOW YOU WILL BE FOLLOWING IT
THROUGH THE DAY AND MEANWHILE, LET'S CONTINUE THE CONVERSATION.
BEN HARBURG IS WITH US. HE IS HIS MISSION TO BRIDGE THE
BEST OF CHINA IN -- AND THE REST OF THE ROAD AND KEY IS
YOUR EXPERTISE BECAUSE YOU LIVE IN BEIJING AND YOU ARE USING
MONEY IN THE U.S. TO ALLOCATE TO CHINA.
HOW DIFFICULT HAS THAT BECOME? >> HARDER.
WE DIVERSIFIED OUR CAPITAL BASE SIX YEARS AGO FOR TODAY, CHINA
IS NEARLY UNADDRESSABLE FOR U.S. PRIVATE CAPITAL. CAROLINE:
DO YOU THINK THAT WILL RATCHET UP A LEVEL?
DO YOU THINK THESE VISITS TO CHINA COULD DOW THAT UP OR DO
WE WORRY ABOUT CHINA'S GIANT ACCESS TO U.S. IPOS? BEN: FROM THE CAPITAL MARKETS
PERSPECTIVE, THE U.S. IS STILL OPEN ALTHOUGH CLOSE
FOR EVERYONE AND I THINK WILL BE HARDER TO RAISE U.S.
CAPITOL, URGENTLY CAPITAL THAT HAS INSTITUTIONAL TIES TO
PENSIONS, ENDOWMENTS AND SOME KIND OF FEDERAL FUNDING BASIS.
THERE IS A FEAR THAT THE FUNDING THAT -- WILL BE CUT BY
SOME EXECUTIVE ACTIONS THAT YOU SHOWED. CAROLINE:
YOU SAW ONE COMPANY THAT IS PUTTING MANUFACTURING IN
KENTUCKY AND THEY'RE NOT GETTING A GRANT FROM THEIR --
FOR THEIR -- ON THE BIDEN ADMINISTRATION BECAUSE OF THEIR
LINKS TO CHINA. BEN:
THERE IS AN OPENING VOID AND A LACK OF COMPREHENSION AROUND
THE MARKET SO IT IS AN ARBITRAGE OPPORTUNITY TO ACCESS
GROWTH THAT IS BEING SHIED AWAY FROM FORM -- FOR NONFINANCIAL
REASONS. ACCESSING THAT CHINA ALPHA IN A
WAY THAT IS POLITICALLY SAFE IS A GROWTH STORY. CAROLINE: ALL OF THIS HAS BEEN TRYING TO
BE ARTICULATED THAT THIS IS ABOUT NEAR SHORING OR MAKING
SURE THE SUPPLY CHAIN HAS RESILIENCE AS WE SAW BREAKDOWN
DURING COVID. WHEN I BRING UP MICRO BEST --
VAST, WHICH IS NO LONGER ABLE TO BUILD A POWER PLANT IN
KENTUCKY BECAUSE OF ITS RELATIONSHIP TO KENTUCKY, WHEN
WE SEE CHINA TRYING TO LIMIT METALS IN THE U.S. -- ACCESS RARE EARTHS QUICKLY
SO THE SUPPLY CHAIN ISN'T DISRUPTIVE FOR THE NEXT FOUR
YEARS? BEN: BOTH ARE TRYING TO WEAN
THEMSELVES OFF THE -- OF THE OTHER.
THE CORE INPUTS IN WHERE IT -- RARE EARTHS AND CHINA'S ON --
CHINA ON THE CHIPS THEMSELVES. THE VANS ARE THE FIRST -- AND
CHINA HAS A SIGNIFICANT SHARE OF THE DEPOSITS OF THESE RARE
EARTH ACROSS MANY DIFFERENT USE CASES AND HAS DONE MANY
MEASURING EXTRACTION AND ALL THESE INFRASTRUCTURES
INVESTMENTS THAT WILL TAKE YEARS FOR THE U.S.
TO EXECUTE UPON IN ORDER TO WEAN ITSELF OFF OF CHINESE
DEPENDENCE. CAROLINE: WHAT PEOPLE HAVE BEEN ANIMATED
ABOUT IS AI, GENERATIVE AI, THE FOCUS IN THE U.S.
ON THE EXCELLENCE THAT IS BEING DEVELOPED BUT WHAT IS HAPPENING
WITH YOUR INVASION, WHAT YOU SEE IN TERMS OF GENERATIVE AI?
BEN: IT HAS ATTRACTED MOST OF THE
CAPITAL INVESTED OVER THE FIRST QUOTE -- COUPLE QUARTERS OF
THIS YEAR. IT IS HARD TO DETERMINE WHO
WILL BE THE WINNER AND LARGELY, PEOPLE THAT HAVE A PROVEN TRACK
RECORD AND EXISTING SUCCESS, OR ABLE TO ATTRACT HUNDREDS OF
MILLIONS OF DOLLARS AT BILLIONS OF DOLLARS OF VALUATION AND IT
SCARES ME BECAUSE IT IS UNCLEAR WHETHER OR NOT THEY HAVE THE
EXECUTION CAPABILITIES AND THE MARKET FIT TO EXECUTE. CAROLINE:
WHERE IS THE AI EXPERTISE IN CHINA? BEN:
CHINA PRODUCES THE LARGEST CROP OF STEM GRADUATES AND HAS A
DEEP BASE OF TALENT AND THE LARGEST HOMOGENOUS DATA SET TO
WORK WITH SO THERE ARE OPPORTUNITIES TO TAKE THAT AND
APPLY IT TO RETAIL, FINANCIAL SERVICES, EDUCATIONS AND OTHER
FORMS OF AND PRICE ACT -- OTHER FORMS OF ENTERPRISE OUT
--OUTPUTS. CAROLINE: WHO WILL TAKE THE PLACE OF THE
U.S. CAPITOL? BEN: WE ARE SEEING A SHIFT OF
EMPHASIS FROM MARKETS LIKE SOUTH BEACH ASIA -- SOUTHEAST
ASIA, AND THE MIDDLE EAST, MARKETS THAT WERE ALLOCATING TO
CHINA AND ARMS WIDE OPEN TO CHINESE BUSINESSES, WE HAVE
SEEN A PUSH OFF OF U.S. ECONOMIC AND POLITICAL INTEREST
CRITICALLY IN THE MIDDLE EAST AS THEY WERE TO EMBRACE CHINA.
-- AS THEY WERE TO EMBRACE CHINA. CAROLINE:
WHAT ABOUT YOUR ROLE? HOW DO YOU SEE YOUR MOVEMENT
BACK AND FORTH? YOUR IT -- YOU ARE IN NEW YORK.
BEN: I BELIEVE THE WORLD IS BETTER
WHEN THESE TWO MARKETS WORK TOGETHER AND PHYSICALLY AS IT
PERTAINS TO CLIMATE, DISEASE AND OTHER MAJOR PHENOMENON
FORCING ITSELF ON THE WORLD, WE HAVE TO WORK TOGETHER BUT THERE
IS AN OPPORTUNITY FOR THOSE THAT UNDERSTAND CHINA, AND HAVE
DEEP RELATIONSHIPS IN THE U.S. AND THE POLITICAL FIELD TO HELP
INVESTORS IN THE U.S. NAVIGATE ALL THESE GEOPOLITICAL
RISKS IN CHINA AND ACCESS THE HIGH ALPHA. CAROLINE:
GREAT TO HAVE TIME WITH YOU. BEN HARBURG, ENERGY DEPARTMENT
-- MANAGING PARTNER AT MSA CAPITAL.
ANOTHER THREAT TO TWITTER. WE WILL HAVE MORE ON THREADS,
THE TEXTBASED CONVERSATION NEXT. LET'S RETURN TO SOME OF THE
WINNERS IN THE GLOBAL TIT FOR TAT, OR CERTAINLY WHEN IT COMES
TO THE TWO KEY RARE RARE -- RARER.
TWO METALS THAT ARE CRUCIAL. THEY ARE PRODUCED IN THE U.S.
BUT SLIGHTLY, A LAS VEGAS-BASED COMPANY IS GETTING BOOST ON THE
BACK OF IT. THIS IS BLOOMBERG. CAROLINE:
JOINING AS IS SARAH FRIER -- JOINING US IS SARAH FRIER.
ALSO A SOCIAL MEDIA REPORTER. STAR AT HOW THREADS IS GOING TO
EVOLVE, THIS IS INSTAGRAM RELATED.
THE SCALE COULD BE PHENOMENAL. >> THAT IS WHAT IS SO EXCITING
ABOUT THIS LAUNCH FOR A LOT OF PEOPLE WHO HAVE BEEN
DISILLUSIONED WITH UPDATE AT TWITTER -- WITH UPDATE AT
TWITTER. -- UPDATES AT TWITTER. THEY HAVE TRIED PLATFORMS LIKE MOSS -- MACEDON -- MASTODON AND
BLUE SKY THAT HAVE GOT THE NETWORK THEY NEED TO TRULY BE A
THREAT TO TWITTER AND HERE IS META, WHICH HAS UP WARTS --
UPWARDS OF 3 MILLION -- 3 BILLION USERS ON ITS PRODUCTS
AND INSTAGRAM THAT HAS UP STRUCTURE SIMILAR TO TWITTER,
UNLIKE FACEBOOK WHERE YOU ARE FRIENDS WITH THE PEOPLE WHO ARE
FRIENDS WITH YOU, ON INSTAGRAM, YOU CAN FOLLOW PEOPLE WHO ARE
INTO SCREEN -- WHO ARE INTERESTING. IT MAKES SENSE TO SAY WE HAVE A
TWITTER COPYCAT OVER HERE AND YOU CAN CHOOSE TO FOLLOW THE
SAME PEOPLE YOU FOLLOW ON INSTAGRAM AND CONNECT WITH THE
SAME PEOPLE AND KEEP YOUR HANDLE AND VERIFICATION, THAT
IS A VERY POWERFUL HEAD START FOR THIS APP IF YOU WILL CHOOSE
TO USE IT -- IF PEOPLE CHOOSE TO USE IT AND I THINK IT COULD
BE A MAJOR THREAT TO TWITTER. CAROLINE:
WE KNOW TWITTER IS HARD TO ELICIT VIEWPOINTS BUT SINCE
LINDA YACCARINO HAS COME IN, THEY HAVE BEEN MORE
COMMUNICATIVE. HAVE YOU -- ARE YOU FINDING
THEY ARE WORRIED? TUESDAY -- DO THEY SEE THEY --
IT AS A HUGE THREAT? >> I THINK IT IS OF HUGE THREAT.
YOU HAVE THE ALTERNATIVES THAT DID NOT TAKE OFF IN THE WAY
PEOPLE THOUGHT THEY WOULD. PEOPLE WENT TO THOSE PLATFORMS
BUT WERE NOT EXACTLY ENTHUSED BY THE USER EXPERIENCE ARE NOT
HAVING ENOUGH PEOPLE AND NOT BEING ABLE TO TAKE OVER THE
SAME HANDLE AND ASIA -- INSTAGRAM CAN TAKE OVER WITH
THREADS AND SOLVE THOSE PROBLEMS AND I CAN SEE PEOPLE
MOVING OVER. TWITTER HAS CHANGES WITH THE
VERIFICATION SYSTEMS AND HOW YOU GET WITH CHECKMARKS. CAROLINE:
DIG INTO THE LIMITED USAGE BECAUSE THERE HAS BEEN
CLARIFICATION OVER THE HOLIDAY YESTERDAY BUT WHAT ARE YOU
HEARING ABOUT THE PUSHBACK, THE LATEST MOVES THAT TWITTER
ITSELF SAYS IS TO ENSURE AUTHENTICITY? >> PEOPLE ARE NOT HAPPY ABOUT
THE FACT THAT YOU WILL BE LIMITED IN THE AMOUNT OF TWEETS
YOU CAN SEE AND IT IS SUPPOSED TO BE A TEMPORARY MEASURE BUT
THE REASON PEOPLE GO TO TWITTER IS TO SEE TWEETS AND WHEN YOU
START LIMITING THAT, THAT IS CONCERNING AND SOME PEOPLE SAID
IT ADVERTISERS COULD BE CONCERNED ABOUT THAT -- THAT
ADVERTISERS COULD BE CONCERNED ABOUT THAT.
WE DON'T KNOW HOW LONG IT WILL LAST BUT THERE HAS BEEN
PUSHBACK ON TWITTER AND AMONG USERS. CAROLINE:
TALKING ABOUT PUSHBACK, WHO IS PUSHING BACK IN THE EU?
WE UNDERSTAND THREATS WON'T BE AVAILABLE THERE AS SOON AS
TOMORROW IF YOU ARE IN THAT YOU. IS A REGULAR SAYING NO YOU
CAN'T DO THIS OR IS THIS META SAYING WE ARE NOT BRINGING
INNOVATION BECAUSE OF YOUR REGULATIONS? >> THERE IS A LITTLE BIT OF
BOTH GOING ON. REGULATORS ARE CERTAINLY
CONCERNED AND SAYING IF YOU ARE GOING TO AT THIS NEW PRODUCT TO
BE EU, THERE ARE CONSIDERATIONS AROUND COMPETITION AND THE FACT
THAT META HAS ALL THE MAJOR SOCIAL PLATFORMS AND DO THEY
NEED ANOTHER ONE? THERE ARE CONCERNS ABOUT THE
USUAL PRIVACY DETAILS, THERE IS LITTLE MORE TO WORK OUT BEFORE
THEY CAN WATCH THERE AND I THINK GIVEN MEDICINE GLOBAL
FOCUS --ME TA'S GLOBAL FOCUS, THEY WANT TO LAUNCH THEIR
EVENTUALLY BUT THEY WANT TO ESTABLISH THIS AS A PRODUCT
PEOPLE WANT TO USE AND IT IS AN INTERESTING TIME BECAUSE ACROSS
THE OTHER PRODUCTS, AIR MOVING AWAY FROM TEXTBASED
COMMUNICATION AND TOWARDS SHORT FORM VIDEO.
THEY ARE TRYING TO TAKE ON TIKTOK AND INSTAGRAM AND
FACEBOOK. THREADS MAY BE AN OPTION NOT
JUST FOR PEOPLE WHO USE TWITTER BUT FOR PEOPLE WHO WANT TO POST
ABOUT THEIR LIVES IN A TEXT BASED WAY AND FIND THOSE KINDS
OF CONTENT DON'T DO AS WELL ON INSTAGRAM AND FACEBOOK. IT COULD BE AN INTERESTING AND
MORE MAINSTREAM VERSION OF TWITTER. CAROLINE:
WHAT ABOUT THE ADVERTISERS? HOW MUCH ARE COMPANIES LOOKING
TO GO TOWARDS META? >> I THINK ADVERTISING IS A
HUGE OPPORTUNITY FOR META. ADVERTISERS MOVED OFF AT
TWITTER. -- OF TWITTER. A LOT OF PEOPLE LEFT FOR ALL
THE REASONS WE OUTLINED. SOME OF YOU MUST IS -- ELON
MUSK'S BEHAVIOR. OTHER ADVERTISERS ARE GOING TO
TWITTER ALTERNATIVES AND IT IS A HUGE RISK FOR TWITTER IF
MEDIC AND BUILD A COMPETITOR AND TAKE CARE OF SOME ISSUES
TWITTER HAS WITH CONTENT MODERATION BUT TWITTER HAS
LINDA YACCARINO AND SHE HAS EXPERIENCE AND RELATIONSHIPS.
GOOD HAS BEEN TALKING ABOUT BRAND SAFETY SO THEY MAY BE
ABLE TO KEEP ADVERTISERS. CAROLINE:
WE WILL HAVE TO WAIT FOR THE CAGE MATCH.
THE FIGURATIVE CAGE MATCH IS ABOUT TO ENSUE. AGE COUNTS, THANK YOU SO MUCH
-- AGE -- AISHA COUNTS, THANK YOU SO MUCH. REALLY ON -- RIVIAN HAS HIS
FIRST COMMERCIAL SHIPMENTS CAROLINE: TIME FOR TALKING TECH.
MARK SIR IS FACING SCRUTINY IN CHINA. A SOCIAL MEDIA ACCOUNT
PUBLISHED AS SCATHING EDITORIAL. THE EDITORIAL EMERGED AFTER THE
WALL STREET JOURNAL REPORTED THAT META WAS IN TALKS FOR
TENCENT HOLDINGS. ZUCKERBERG HAS CRITICIZED
CHINESE CENSORSHIP AND META AND TENCENT DIDN'T RESPOND TO
REQUEST FOR COMMENT. SPOTIFY CEO HAS RAISED OVER $65
MILLION TO EXPAND ITS -- HIS MEDICAL STARTUP.
THE STARTUP PROVIDES FULL BODY SCANS. RIVIAN STARTED DELIVERING THE
ELECTRIC BANDS AND MAKES FROM AMAZON TO EUROPE.
AMAZON WILL ROLL OUT MORE THAN 300 DELIVERY VANS IN THE COMING
WEEKS TO GERMAN CITIES. JOINING US TO THIS -- TO TALK
THROUGH THAT IS CRAIG TRUDELL. >> IT IS ABSOLUTELY A BIG DEAL
FOR RIVIAN AND ANY TIME THERE CAN BE A REMINDER OF THE TIES
TO AMAZON AND THE ROLE AMAZON PLAYS AS A BIG CUSTOMER IS A
GOOD THING FOR RIVIAN AND NOT THAT FOLKS WHO KNOW THIS
COMPANY WELL AND KNOW THIS COMPANY WILL FORGET THAT -- AND
FOLLOW THIS COMPANY WILL FORGET THAT.
THEY HAVE HAD A HECKUVA OF A TIME GETTING PRODUCTION ROLLING
AND THIS IS AN INDICATION THAT PRODUCTION IS BEING SMOOTHED
OUT. WE SOLVED THAT EARLIER THIS WEEK WITH THE PRODUCTION
NUMBERS THAT HAVE BEEN REPORTED FOR THE SECOND QUARTER AND THE
FACT THAT THEY ARE ABLE TO NOW NOT ONLY BOOST DELIVERIES
LOCALLY BUT START SOME EXPORTING IS A POSITIVE SIGN
FOR PRODUCTION. CAROLINE: AND POSITIVE COMING FROM THE
ANALYSTS, ONE ANALYST LIFTING THE PRICE TARGET AFTER THE
PRODUCTION NUMBERS. -- THERE IN LINES BUYS THE FACT
THAT IT HAS BEEN UNDERPERFORMING -- THERE --
THEREIN LIES THE FACT THAT IT HAS BEEN UNDERPERFORMING. JON:
THEY WERE SUFFERING FROM THEY WERE --CRAIG:
THERE WERE SUFFERING FROM THE ISSUE -- THE ISSUES THE BROADER
INDUSTRY HAS FROM YEARS AGO LIKE THE SUPPLY CHAIN DURESS
AND THINK WE ARE THROUGH THAT AND WE HAVE CONCERNS ABOUT THE
METALS IN CHINA AND WHETHER OR NOT THAT WILL BE THE LATEST
THING TO SLOW DOWN SUPPLY SEMI CONDUCTORS, ONE OF THE THINGS
THIS STORY SPEAKS TO. THE IDEA OF STARTING TO SHIP
VANS TO EUROPE IS THE -- THE NEED FOR ELECTRIFICATION IN
THIS VEHICLE SPACE AND THE WALL RIVIAN CAN PLAY.
WHEN YOU THINK ABOUT THE BIGGEST BANG FOR YOUR BUCK OR
ELECTRIFYING VANS. BECAUSE THE RISE OF ONLINE
SHOPPING AND DELIVERY AND CITY CENTERS, WE KNOW THAT CITIES
WANT MORE OF THESE ON THE ROADS, INCUMBENT MANUFACTURERS
ARE HAVING A HARD TIME MEETING DEMAND.
STARTUPS ARE HAVING A HIGH -- A HARD TIME MEETING DEMAND SO IT
RIVIAN CAN DIP -- KEEP CRANKING ON THESE BANDS, WE KNOW THERE
IS A LOT OF INTEREST IN THESE IF THEY CAN FOLLOW THROUGH ON
THIS BIG ORDER FROM AMAZON OVER THE NEXT HAVE TO GET. CAROLINE:
100,000, BIG ORDER. THAT IS A LOT OF VANS.
[LAUGHTER] THANK YOU FOR JOINING US AND WE
HAVE SO MUCH MORE ON THE STORY, WE HAVE OUTLIVED INTERVIEW, THE
CEO OF RIVIAN, COMING UP AT 4:30 P.M. NEW YORK CITY TAKING STEPS TO
REGULATE ARTIFICIAL INTELLIGENCE WHEN IT COMES TO
HIRING. WE WILL GET THE DETAILS NEXT.
THIS IS BLOOMBERG. CAROLYN:
WELCOME BACK TO BLOOMBERG TECHNOLOGY.
I AM CAROLINE HYDE IN NEW YORK AND ED LUDLOW IS ON ASSIGNMENT.
LET'S CHECK IN ON THE MARKETS, MUTED AFTER THE DAY
CELEBRATIONS OF JULY 4, A .1% ON THE NASDAQ AND TEC IS
OUTPERFORMING THE REST OF THE MARKET.
THE REST OF THE MARKET IS NERVOUS ABOUT CHINESE ECONOMY,
THE GROWTH STORY, LACKLUSTER LOOKING TO THE SERVICES NUMBER,
AND THE NASDAQ 100 MANAGED TO OUTPERFORM THE BIG NAMES, INTO
THE INDIVIDUAL MOMENT -- MOVERS TO SUPPORT THAT BY THE TENURE
YIELD MOVING HIGHER BY SIX BASIS POINTS.
WE GET THOSE FOMC MINUTES FROM THE PREVIOUS RATE DECISION
WHERE THEY STOOD PAT AND DID NOTHING FOR THE FIRST TIME IN
10 RATE HIKES. INTERESTING TO SEE IF THERE IS
ANY CLARITY ON HOW DIVIDED THE FOMC IS IN THE UNITED STATES BE
LET'S LOOK AT INDIVIDUAL MOVERS. COMPANIES ON THE MOVE, META
PLATFORMS, THE STAR PERFORMER UP MORE THAN 3% AS WE
ANTICIPATE THE UNVEILING OF THREADS AS SOON AS TOMORROW.
THE TWITTER TAKE ON, INTEL BY 2% AND MOST OF THE CHIP STOCKS
ARE DOWN TODAY AS WE WERE ABOUT THE GEOPOLITICAL RISK FROM
CHINA AND THE FACT THEY'RE LIMITING THE MATERIALS, RARE
EARTH'S IN PARTICULAR THEY GO INTO SEMICONDUCTORS, EV'S, YOU
NAME IT, THE TWO KEY MATERIALS THAT WILL BE EVEN HARDER TO GET
A HOLD OF, INTEL ON THE DOWNSIDE. PEGASUS SYSTEMS, THIS PARTICULAR SOFTWARE COMPANY, UP
14%, OF COURSE A SMALL COMPANY GETTING A RATING UPGRADE HAS
SOME ANALYSTS FEEL THE LEGAL HEADWINDS ARE NOT SOMETHING TO
BE AS AGITATED ABOUT AS PREVIOUSLY.
UP 40% BE LET'S TALK ABOUT SOFTWARE AND HIRING IN
PARTICULAR. HERE IN NEW YORK CITY, TAPING
STEPS, THE CITY IS, TO REGULAR ARTIFICIAL INTELLIGENCE WHEN IT
COMES TO HIRING. A NEW RULE COMES INTO EFFECT
THAT REQUIRES COMPANIES USING AI SOFTWARE IN RECRUITING TO
NOTIFY CANDIDATES THAT ANY AUTOMATED SYSTEM IS BEING USED.
ALSO REQUIRING COMPANIES TO HAVE INDEPENDENT AUDITORS CHECK
THE TECHNOLOGY ANNUALLY. -- ANNUALLY FOR BIAS.
WHY IS THERE POTENTIALLY THE THREAT OF BIAS WITHIN THESE
SYSTEMS? >> AI IS USED IN ALL KINDS OF
HIRING MECHANISMS AROUND THE COUNTRY RANGING FROM EVALUATING
VIDEO INTERVIEWS, ALL OVER THE PLACE.
A 2020 TWO SURVEY FOUND THE SOCIETY OF HUMAN RESOURCE
MANAGEMENT SHOWED NEARLY ONE IN FOUR ORGANIZATIONS USE AI IN
SOME HR CAPACITY. SO IT IS ALL OVER.
THERE'S A LOT OF CONCERNS AND WITH THAT CONCERNS FROM
LAWMAKERS AND ADVOCATES ALIKE THAT THESE TECHNOLOGIES,
RELATIVELY NOVEL, HAVE NOT BEEN EFFECT FOR A LONG, BAKES AND
PREJUDICE BECAUSE A LOT OF SYSTEMS LIKE A LOT OF OTHER
THINGS ARE BEING TRAINED ON HISTORICAL DATA.
THE STATE IS NOT PERFECT AND COULD HAVE A DISCRIMINATORY
BIAS. CAROLINE: TALK US THROUGH THE NEW
REQUIREMENTS, FIRST OF THEIR KIND FROM NEW YORK.
WHAT WOULD A COMPANY HAVE TO DO, HOW WOULD THEY GO ABOUT
DISCLOSING? GREG: THE LAW ON ITS FACE REQUIRES
ALL NEW YORK CITY EMPLOYEES TO INDEPENDENTLY AUDIT THEIR
SYSTEMS MEANING THEY HAVE TO GET A FIRM TO AUDIT.
IT HAS TO BE DONE ONCE A YEAR AND THEY NEED TO PUBLICLY
DISCLOSE THEIR RESULTS ON THE WEBSITE AND THE LAW ALSO
REQUIRES THESE EMPLOYERS INFORM JOB CANDIDATES THEY ARE USING
AI PRIOR TO THEIR USING ANY HIRING MECHANISM.
THE LAW DOES CURRENTLY NOT HAVE ANY PRIVATE RIGHT OF ACTION
MEANING AN INDIVIDUAL CANNOT FILE A SUIT AGAINST THE
ORGANIZATION. BUT IF AN EMPLOYER IS FOUND IN
VIOLATION OF THE LAW, THEY WILL INCUR A $500 FIND ON THE FIRST
OFFENSE IN $1500 FINE ON EACH SUBSEQUENT EVENTS. CAROLINE:
COMPANIES LOBBIED AGAINST THIS NEW LAW AND IT HAD BEEN TWEAKED
AROUND THE EDGES. I AM INTERESTING ABOUT NOW IT
IS OFFICIALLY ENFORCEABLE. DOES THIS BECOME TAKEN ACROSS
THE REST OF THE STATES? WHAT YOU THINK COMES NEXT? GREG:
THIS IS A FIRST IN THE NATION LAW AND LIKELY TO BE FOLLOWED.
IT HAS BEEN GROWING PRESSURE FOR JURISDICTIONS TO REGULATE
AI AND HAS BEEN A HIGH PRIORITY FOR THE EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION THE AGENCY THAT IS IN CHARGE OF
ENFORCING TITLE VII OF THE CIVIL RIGHTS ACT OF 1964.
OTHER STATES HAVE LAWS ON THE BOOKS IN MARYLAND IN PARTICULAR
THEY HAVE LAWS THAT REGULATE AI TO SOME EXTENT FOR VIDEO
INTERVIEWS BUT THIS IS LIKELY TO BE FOLLOWED AND WHILE THIS
APPLIES TO EMPLOYERS WITHIN NEW YORK CITY, IT IS WHY EMPLOYERS
ARE THINKING ABOUT WHEN THE USE ARTIFICIAL INTELLIGENCE AND A
HIRING CAPACITY. CAROLINE: THANK YOU SO MUCH, GEORGE
WEYKAMP AND I FEEL LIKE WE WILL COME BACK TO YOU AT SOME POINT
IN TIME. LET'S LOOK INTO ARTIFICIAL
INTELLIGENCE WHISPERS. YOU CAN EARN SIX-FIGURE
SALARIES AND DON'T NEED ANY PROGRAMMING EXPERIENCE.
BLOOMBERG MET ONE OF THESE PROMPT ENGINEERS TO FIND HOW TO
COAX THE BEST OUT OF THE LARGE LANGUAGE MODELS. >> ALBERT IS A FULL-TIME PROMPT
ENGINEER OR AS HE DESCRIBES IT AN AI WHISPERER.
I SAT DOWN TO UNDERSTAND WHAT IS BEHIND THIS INCREASINGLY
COMPETENT ROLE THAT CAN PAY UP TO SIX FIGURES. >> THEY WERE SAYING YOU ARE
CREATE -- HIGHLY CREATIVE JOURNALIST AND CREATE AN
INTRODUCTION TO ENGINEERING IN THE HOUSE OF BLOOMBERG. >> IT'S A BIT FLOWERY I WOULD
SAY. >> WITH THE RISE OF LARGE
LANGUAGE MODELS LIKE GPT THREE, GPD FOUR, DEMAND FOR A NEW KIND
OF AI JOB IS ALSO GROWING. PROMPT ENGINEERS SPEND THEIR
DAY COAXING THE AI TO PRODUCE BETTER RESULTS.
AND HOW COMPANIES TRAIN THEIR WORKFORCE TO HARNESS THE TOOLS.
THE ROLE CAN PAY AS MUCH AS $335,000 A YEAR, BUT FOR MANY
IT DOES NOT REQUIRE A DEGREE IN COMPUTER ENGINEERING OR
ADVANCED CODING SKILLS. >> I WOULD LOVE TO SEE HOW YOU
SPEND YOUR DAY. COULD YOU MAYBE BUILD ME A DEMO
OF A BLOOMBERG EDITOR LET'S SAY? >> ABSOLUTELY. LET'S GO DO THAT.
>> OK. . >> OPENAI'S CONSUMER FACING
TOOL CHATGPT IS PRE-PROMPTED, SET UP TO BE A HELPFUL
ASSISTANT. TO BE A PROFESSIONAL PROPPED
ENGINEER, YOU HAVE TO GET INTO THE GUTS OF THE LARGE LINKAGE
MODEL. THAT MEANS CHANGING THE DEFAULT
PROMPT. >> THIS IS THE OPENAI PROGRAM,
MORE ADVANCED, MORE NEUTRAL, MORE POWERFUL, CUSTOMIZABLE
VERSION OF WHAT YOU SEE WHEN YOU LOAD UP CHATGPT. >> EXACTLY.
IT IS WHAT WE WILL LOOK TO DO, HELP YOU WRITE SOME INTERESTING
CONTENT AROUND DIFFERENT ENGINEERING TECHNIQUES. >> YOU ARE MAKING A HELPFUL
ASSISTANT FOR ME TO WRITE A STORY ABOUT PROMPT ENGINEERING
IS A BLOOMBERG JOURNALIST? >> YES, EXACTLY. >> SEEMINGLY SEMI-MYSTIFYING
TECHNIQUE, PROPPED ENGINEERING IS AN ACTION-PACKED INTERFACE
BETWEEN HUMAN CREATIVITY AND APIS POWER. >> I THING THERE'S MORE WORK WE
NEED TO DO. >> THERE ARE A FEW TIPS AND
TRICKS ALBERT USES TO IMPROVE RESULTS, CHANGE THE TEMPERATURE
OR RANDOMNESS OF THE OUTPUT, TELL IT TO TAKE THINGS
STEP-BY-STEP, AND FEED IT A PREWRITTEN ARTICLE AS AN
EXAMPLE. AFTER 30 MINUTES OF WORK, WE
DID NOT QUITE MANAGED TO REPLACE MY EDITOR WITH AI BUT
THE RESPONSES DID GET MORE USEFUL AS ALBER ADDED MORE
CONTEXT AND INSTRUCTIONS. >> THE ONE THING WE PROBABLY
HAVEN'T DONE A LOT OF HERE IS TREATING THIS AS A DIALOGUE IS
A USEFUL WAY OF GETTING BETTER RESULTS. >> WE ARE GETTING SOMETHING
RIGHT NOW. THERE'S AN IDEA THAT IS
INTERESTING. >> ALBERT SAYS PROMPT
ENGINEERING HAS TURNED THE ENGLISH-LANGUAGE INTO A
PROGRAMMING LANGUAGE. HE HAS HAD NO TECHNICAL
EDUCATION OR PROGRAMMING EXPERIENCE.
HE STUDIED HISTORY AT UNIVERSITY BEFORE STARTING HIS
CAREER AS A CONSULTANT. HE SAYS HIS NONSCIENTIFIC
BACKGROUND MAKES HIM MORE, NOT LESS, QUALIFIED TO RUN AI TOOLS.
WHEN IT COMES TO FEARING THIS TECHNOLOGY REPLACING JOBS, HE
IS NOT CONCERNED. >> [INDISCERNIBLE] >> I WOULD PROBABLY THINK OF IT
ALWAYS ROUND, WE AS HUMANS MIGHT BECOME MORE LIKE THE
EDITOR, WE OUTLINE WHAT THE MODEL TO DO, GIVE IT TEST
CASES, GIVE IT EXAMPLES, THEN WE WILL BE THE ONE TO
ESSENTIALLY DO THE EDITING. CAROLINE:
BACK ON THE RISE, PROMPT ENGINEER ALBERT PHELPS SPEAKING
WITH BLOOMBERG. COME UP -- COMING UP, RUNWAY
SECURING FUNDING FROM BIG NAMES IN THE WORLD ATTACK.
WE WILL SIT DOWN FOR AN EXCLUSIVE CONVERSATION WITH THE
CEO THIS IS BLOOMBERG. ♪ THIS IS BLOOMBERG. ♪ . CAROLINE:
AI STARTUP RUNWAY, WHOSE SOFTWARE CAN CREATE A FEW -- A
VIDEO FROM A FEW SHORT WORDS RAISED FUNDING FROM GOOGLE,
NVIDIA, AND OTHER INVESTORS. JOINING US IS THE CEO OF
RUNWAY, CRIS VALENZUELA. 141 MILLION DOLLARS IS AN
EXTENSION OF YOUR SERIES C. WAS THIS INBOUND INTEREST
COMING FROM THESE BIG PLAYERS? CRIS: THANK YOU FOR HAVING ME.
WE HAVE BEEN WORKING ON RUNWAY FOR FIVE YEARS SO EXCITED TO BE
PARTNERED WITH THE LIKES OF GOOGLE AND OTHERS ON THIS ROUND
THAT EXTENDS BAND WITH AN CAPACITY TO BUILD ENCORE
RESEARCH WE HAVE BEEN WORKING ON SINCE JEN ONE ENGINE TO
WHICH ARE VIDEO DURATION MODELS. THERE'S A LONG WAY TO GO BUT WE
ARE EXCITED TO TAKE THE NEW FUNDING TO IMPROVE AND SCALE
OUR RESEARCH EFFORTS. CAROLINE: IT'S INTERESTING PREVIOUSLY
RAISING MONEY FOR THE BIG BC NAMES BUT NOW IT SEEMS LIKE IT
IS STRATEGIC INVESTORS COMING IN.
HOW DO YOU THINK THEIR INTEREST WAS PIQUED ON WANTING TO COME
IN AND DO THIS EXTENSION? >> THERE ARE DIFFERENT PARTS OF
THE DEVELOPMENT OF THE MODELS. YOU CAN THINK OF IT AS TWO
PHASES, THE FIRST IS BUILDING THE FOUNDATION A MODEL AND THAT
TAKES TIME AND EFFORTS. THE SECOND PART IS THE PHASE WE
ARE IN RIGHT NOW, GETTING THE MODELS OUT TO MORE PEOPLE, TO
MORE CUSTOMERS, MOST ENTERPRISES, AND BEING ABLE TO
WORK WITH COMPANIES LIKE GOOGLE SPEEDS UP THAT AND ALLOWS US TO
INNOVATE AT THE SPEED WE NEED TO INNOVATE. WE ARE ENTERING THE PHASE OF
DEVELOPMENT AND I WOULD SAY RESEARCH MENTALITIES.
EXCITED TO BE WORKING WITH SOME OF THE BEST IN THE WORLD.
CAROLINE: OF COURSE YOU HAVE NOT DISCLOSED YOUR VALUATION BUT WE
UNDERSTAND THERE ARE BOUTS $1.5 BILLION.
TALK ABOUT THE COSTS FROM YOUR SIDE.
YOU WILL BE USING THIS TO BEEF UP TEAMS, CREATING INNOVATING
BUT THE COMPUTE POWER MUST BE MASSIVE.
IS THAT WHERE GOOGLE COMES IN? CRIS:
I THINK THERE ARE TWO PARTS OF THE STAGE WHERE WE ARE WITH
THIS MODELS AND VID E-MODELS AND IMAGE MODELS TEND TO WORK
DIFFERENTLY THAN THE LANGUAGE MODELS, PERHAPS THE ONES MORE
DISCUSSED NOWADAYS. REVIEW MODELS AND IMAGE MODELS,
THERE IS A COMPONENT ON THE INFO STRUCTURE SIDE OF THINGS
AND MAKING SURE THE MODELS ARE FAST AND RELIABLE AND YOU CAN
CHANGE LARGE MODELS TO COMPLEX TASKS.
SO OUR RESEARCH IS MAKING THAT HAPPEN WITH STATE-OF-THE-ART
TECHNOLOGY AND RESEARCH AND COMPUTE BUT AT THE OTHER SIDE,
THERE IS SO MUCH ON THE INFRASTRUCTURE THAT NEEDS TO
GET BUILT THAT HAS NOT GOTTEN BUILT THAT ALSO REQUIRES TIME
AND PEOPLE. WE ARE AN INCREDIBLY SMALL TEAM
PUSHING THE BOUNDARIES FOR THE LAST FOUR TO FIVE YEARS AS WE
STARTED ON BUILDING THESE MODELS AND TECHNOLOGIES.
SO MAKING SURE YOU CAN WORK WITH THE RESEARCH ASPECTS AND
OTHER ASPECTS IS IMPORTANT AND THE RESEARCHERS GO TO BOTH ENDS
ON THE RESEARCH SIDE AS WELL. CAROLINE:
YOU HAVE BEEN WORKING ON THE INFRASTRUCTURE SIDE A LOT
ALREADY. IN LAYMAN'S TERMS, CAN YOU TELL
US THE ISSUES, WHAT ARCHITECTURE YOU NEED TO BUILD
TO SCALE AT THE RATE YOU WANT TO? CRIS:
FOR SURE, THAT IS A GREAT QUESTION.
IF YOU THINK ABOUT IT ON JEN ONE AND GENTOO, WHICH ARE TWO
OF THE MODELS AND IT HAS ONLY BEEN FOUR TO FIVE WEEKS SINCE
WE DID IT. EVER SO MUCH WORK THAT GOES
INTO MAKING THE MODELS DO WHAT THEY WERE BUILT TO DO, GENERATE
VIDEO. IF YOU STOP AND THINK ABOUT IT,
YOU ARE GENERATING VIDEO THAT FIVE TO 10 YEARS AGO WOULD HAVE
BEEN THOUGHT TO BE IMPOSSIBLE OR HARD, ALMOST FEEL LIKE MAGIC
THESE DAYS. MAKING SURE YOU CAN DO THAT IS
ITSELF A TECHNICAL, DIFFICULT THING. SO WE WERE ABLE TO CREATE THE
IMAGES YOU ARE SEEING NOW. THOSE ARE JUST GENERATED WITH
WORDS. ON THE OTHER CITED THINGS, THIS
IS A COMPLEX INFRASTRUCTURE THAT ALLOWS ANYONE WITH A PHONE
OR DESKTOP APPLICATION OR INTERNET CONNECTION TO BE ABLE
TO DO THIS. IN ORDER TO DO THAT, YOU NEED
TO HAVE A STREAMING SERVICE ABLE TO GENERATE THE FRAMES ON
A REAL-TIME BASIS. VIDEOS TAKE 40 SECONDS TO
GENERATE, WHICH IS FAST, AND WE ARE MAKING SURE TO REDUCE THAT
OVERLY AT SOME POINT AT SOME TIME DOING IT IN A REAL-TIME
BASIS SO EVERYTHING WE NEED TO BUILD TO MAKE THAT HAPPEN HAS
NOT BEEN BUILT BECAUSE THESE MODELS AND TECHNOLOGY DID NOT
EXIST A COUPLE MONTHS AGO. SO FROM THE APP, WE THINK OF
OURSELVES AS A FULL-GROWN COMPANY.
WE ASK OURSELVES TO BUILD AND ALLOW YOU TO DEPLOY THE MODELS
OR FILMMAKERS OR STUDIOS AND COMPANIES AROUND THE WORLD
ALREADY USING IN LEVERAGING THIS TECHNOLOGY. CAROLINE:
I'VE BEEN USING AND NOT REALLY LEVERAGING BUT INTERESTED IN
PLAYING AROUND WITH GENTOO TODAY AND IT IS BEAUTIFUL, SOME
CREATIONS YOU MAKE BUT IT IS INTERESTING THE FACES OF THE
AREA THAT PERHAPS ARE NOT THAT EASY TO PROVIDE AND ALSO THE
WAY IN WHICH YOU HAVE TO HAVE AN ABUNDANCE OF CAUTION.
HOW ARE YOU THINKING ABOUT SOME OF THE STILL EVOLVING
REGULATION AND THE WAY IN WHICH YOU CAN ENSURE CONTENT REMAINS
MODERATED IN SOME WAY? CRIS: WE TAKE SAFETY EXTERNALLY
SERIOUSLY READ WE HAVE A TEAM DEDICATED TO MAKE SURE WE HAVE
THE RIGHT FILTERS AND SAFETY POLICIES IN PLACE SO WE ARE
TAKING A CAUTIOUS APPROACH HERE. THE ANALOGY I HAVE BEEN TRYING
TO THINK ABOUT AND BEST COMMUNICATE THE STAGES OF
DEVELOPMENT WE ARE IN WITH THE MODELS IS TO THINK ABOUT THIS
AS A CAMERA. WE ARE PUTTING A NEW CAMERA IN
THE HANDS OF FILMMAKERS AND THE NEW NORMS AND POLICIES AND KIND
OF WAYS OF USING THIS THAT WILL HAVE TO BE CREATED AS WE START
IMPROVING THE QUALITY OF MODELS. THESE ARE NEW MODELS SO THERE
IS A LONG WAY TO GO BUT TAKING A VERY OPINIONATED MATTER AND
MAKING IT SAFE AND CONTROLLABLE, THESE TOOLS ARE
TOOLS FOR AUGMENTING A PROCESS. BY MAKING SURE YOU CAN USE THEM
IN A SAFE ENVIRONMENT AND CREATIVE ENVIRONMENT. CAROLINE:
ARE ACTORS RIGHT TO BE WORRIED IN THE WAY THEY ARE CURRENTLY
SAYING? CRIS: NO. I THINK MOST OF THE USAGE FOR
THE THOUGHTS AROUND VIDEO AND A I GENERATIONS COMES FROM THAT
YOU WILL TYPE IN A FEW WORDS TO GENERATE A HOLLYWOOD MOVIE.
THE TRUTH IS THAT IS FAR FROM BEING THE CASE.
THESE TOOLS THAT WOULD ALLOW YOU TO DO IT FASTER ON THEIR
PROCESSES AND IDEAS AND PROJECTS BUT IN NO MEANS
TRANSFORMING ANYTHING. THEY ARE THOSE THINGS.
PERHAPS A QUESTION IS HOW FAST WILL WILL BE ABLE TO -- WILL WE
BE ABLE TO SHOOT INTO A SCENE THAT TODAY MIGHT BE TOO
CONSUMING OR TIME-CONSUMING -- TO EXTENSIVE OR TIME-CONSUMING.
CAROLINE: THANK YOU. CRIS VALENZUELA, THE RUNWAY CEO.
COMING UP, LET'S TALK ABOUT HOW CONTENT CREATION BUT THE
STREAMING WARS AROUND THEM IS HEATING UP.
AMAZON GETTING A BIT OF LAGGING BEHIND THE LIGHTS OF NETFLIX.
-- LIKES OF NETFLIX. SHARES OF NETFLIX OPENING
STRONG IN U.S. TRADING, NOT JUST FADING A
LITTLE BIT AND THE MIDDAY. GOLDMAN UPGRADED THE STREAMING
SERVICE TO NEUTRAL SING MANAGEMENT EXECUTED ITS
PASSWORD SHARING CRACKDOWN EFFECTIVELY -- MORE EFFECTIVELY
THAN EXPECTED. THIS IS BLOOMBERG. CAROLINE:
LET'S TALK STREAMING WARS AND THE COSTS INVOLVED.
AMAZON'S SEE IS TAKING A HARD LOOK AT HOW THE COMPANY'S
HOLLYWOOD STUDIO SPENDS ON ORIGINAL TV PROGRAMMING AND
WONDERING WHY SHOWS SEEM TO COST MORE THAN NETFLIX'S.
CHRIS PAUL MARY IS HERE TO BREAK IT DOWN.
WE KNOW JOBS ARE BEING CHATTED, IT IS AN OBVIOUS PLACE TO LOOK,
THE CONTENTS. WHY IS IT MORE EXTENSIVE? >> THEY DID THIS MASSIVE PIVOT.
REMEMBER WHEN AMAZON STARTED IN VIDEO THEY WERE GOING TO USE
THEIR EXPERIENCE IN BOOKS AND FIND OUT THE SORT OF SHOWS THAT
PEOPLE THEY THOUGHT THEIR BOOK CUSTOMERS MIGHT WANT TO WATCH.
IF YOU REMEMBER PROGRAM LIKE TRANSPARENT.
THEN JEFF BEZOS SAID I WANT A GAME OF THRONES AND THEY
STARTED THIS MASSIVE SPENDING PUSH, WE SAW THE RING OF POWER,
LORD OF THE RINGS A SPINOFF, AND MASSIVE SHOWS LIKE CITADEL
WHICH HAS BEEN A DISAPPOINTMENT FROM THE RUSSO BROTHERS THIS
YEAR. ANDY JACKSON THE CEO TAKING A
HARD LOOK AND CALLING THE ENTERTAINMENT EXECUTIVES TO
HEADQUARTERS, ASKING FOR DETAILED ACCOUNTS OF THE
SPENDING, INCLUDING THE BIG SHOWS AS PART OF AN OVERALL
SUITE OF WHAT HOLLYWOOD IS LOOKING AT, LOOKING AT SPENDING
IN THE STREAMING WARS BUT EXACERBATED BY AMAZON. CAROLINE:
IS THERE ANY WAY THEY CAN REDUCE THE COST WITHOUT PUTTING
ON SOME OF THE WINDS OR THE FACT THEY ARE INVESTING BECAUSE
THEY WANT TO KEEP A CLASS ADDICTED TO THE BROADER AMAZON
OFFERING, NOT JUST AMAZON PRIME? >> THAT HAS ALWAYS BEEN THE
ARGUMENT ON WHY AMAZON'S VIDEO BUSINESS HAS BEEN UNDER THE
RADAR BECAUSE THEY HAVE THIS ULTERIOR MOTIVE WHICH IS GET
PEOPLE SUBSCRIBING TO PRIME SERVICE AND LOCK THEM IN FOR
SHIPPING AND ALL KINDS OF PURCHASES. BUT THEY CAN'T DO THAT FOREVER
AND NOT - FACE THE REALITY, -- AND NOT FACE THE REALITY,
EVERYONE IS SPENDING MONEY ON TV SHOWS. CAROLINE:
THAT IS FOR SURE, AS THE ECONOMY TAKES A TURN.
THANK YOU SO MUCH FOR JOINING US. HOPE YOU FEEL BETTER P LET'S
HAVE A LOOK AT WHAT IS HAPPENING IN TERMS OF ARABIANS
FIRST COMMERCIAL SHIPMENT OUT OF THE U.S..
REVIEW AND BASED UPON AMAZON PROVIDING ELECTRIC VANS.
WHO OTHER THAN ED LUDLOW IS THE EXPERT AND HE IS GETTING READY
FOR A KEY INTERVIEW ON THE BACK OF IT. WHERE EXACTLY ARE YOU?
ED: JUST TOUCHED DOWN IN SOUTHERN
CALIFORNIA AND WE ARE HEADING TO RAVINES HQ FOR A
CONVERSATION WITH THE CEO. YOU ARE RIGHT, IT HAS BEEN A
STRANGE WEEK AND I THINK REALLY AND IS UP FOR A SIXTH
CONSECUTIVE SESSION TRADING AT FEBRUARY HI.
IT HAS BEEN A TURNING POINT FOR THE COMPANY AND THEY POSTED
PRODUCTION AND DELIVERY FIGURES ABOVE WALL STREET EXCITATIONS
THIS MONDAY. THIS HAS A LOT OF MOMENTUM BUT THIS IS A COMPANY THAT HAD THE
BIGGEST IPOS TO A HORRIBLE 2022 WHERE IT WAS THE SECOND WORST
PERFORMER ON THE NASDAQ 100 AND GOT TAKEN OFF THE NASDAQ 100.
THERE ARE TWO KEY PIECES OF NEWS WE WILL TALK ABOUT.
CAROLINE: AND WE STARTED TO SEE ANALYSTS
CHANGE THEIR TUNE, DA DAVIS AND OTHER ANALYSTS SAYING NOW MIGHT
BE AN OPPORTUNE TIME TO BUY THE HEADLINES -- TO BUY.
THE HEADLINES ARE LOOKING POSITIVE.
WHAT DO YOU WANT TO UNDERSTAND FROM RJ? >> I WANT TO UNDERSTAND WHY
THEY ARE NOT DOING MORE. THE FACTORY IN ILLINOIS IS
CAPABLE OF FILLING MANY MORE THAN THE 50,000 EV'S THEY
GUIDED INVESTORS ON FOR THIS YEAR.
ALSO REALLY INVESTED IN RJ, 40 YEARS OLD, FOUNDED THIS COMPANY
IN 2011, HAD THE BIG IPO IN 20 WHEN HE WENT AND I WANT TO ASK
HIM IS HE HAVING FUN. BEING A FOUNDER CEO IS A RARE
THING IN THIS DAY AND AGE. HE'S REALLY AT THE CUTTING EDGE
OF ENGINEERING, AND THE QUESTION IS WISE REVIEW NOT A
HEAD AT THIS POINT? REVIEWING IS [INDISCERNIBLE]
CAROLINE: ED LUDLOW BATTLING SOME OF THE
NOISE IN THE AIRPORT. THANK YOU SO MUCH FOR BRINGING
US WHAT WE ARE EXCITED ABOUT, A LIVE INTERVIEW LATER WITH ED
LUDLOW AND THE REVIEW AND CEO. HEARD A LITTLE BIT OF WHAT HE
WANTS TO GET OUT OF THAT CONVERSATION AND WE CANNOT WAIT
FOR IT. THAT DOESN'T FOR THIS ADDITIONAL BLOOMBERG TECHNOLOGY.
DO NOT FORGET TO CHECK OUT THE
