FROM THE HEART OF WHERE
INNOVATION, MONEY AND POWER COLLIDE.
THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED
LUDLOW. CAROLINE:
I'M CAROLINE HYDE IN NEW YORK. ED: AND I'M IN SAN FRANCISCO.
CAROLINE: TESLA ASKED ITS INVESTORS TO
APPROVE A PAY PACKAGE. ED:
CHIPMAKING ORDERS DIVE AT ASML. OUR CHIP STOCKPILES BACK?
CAROLINE: WE WILL BRING YOU INTO A
CONVERSATION WITH THE FRENCH COMPANY A TOSS.
IN THE EQUITY MARKET PULLS BACK A LITTLE BIT FROM WHERE IT HAD
BEEN. NEVERTHELESS WE SEE BOND
MARKETS OUTPERFORM, CURRENTLY SEEING A 20 YEAR YIELD DOWN TO,
THREE BASIS POINTS. MOVING ON AND LOOKING ON THE
WORLD OF CRYPTO. IT'S BEEN ON THE DOWNSIDE AS
THE U.S. DOLLAR IS FALLING. THE FIRST TIME IN SIX DAYS WE
SAW THE DOLLAR GIVE UP STRENGTH AS WE DIGEST WHAT HAS BEEN A
SLIGHTLY MORE HAWKISH OF. RISK ASSETS ARE STILL CAUTIOUS
OUT THERE. ED: TESLA CONTINUES TO DOMINATE
HEADLINES. DOWN FOR A FOURTH STRAIGHT
SESSION. THE STOCK IS TRADING AT ITS
LOWEST LEVEL IN ALMOST A YEAR AND I DON'T THINK THIS HAS TO
DO WITH THE HEADLINES ON THE BLOOMBERG TERMINAL. THE IDEA OF INCORPORATING IN
TEXAS, THUS ABOUT THE DOWNWARD PRESSURE.
THERE IS INDIGESTION FROM THE PAST FOUR DAYS. LAYOFFS, AND ELON GOING IN ON
ROBOTAXIS. WHAT IS HAPPENING? BUT THE STOCK IS UNDER A LOT OF
PRESSURE WHILE THE TALK FROM ELON MUSK IS FINDING TALK AND
WE HAVE SOME PRETTY GOOD GUEST GO OVER THAT. CAROLINE:
WHAT'S SO INTERESTING IS COMING OUT FIGHTING TO DELAWARE, THE
COURT, THE 2018 PAY PACKAGE AND YOU ARE NOT DOING ENOUGH TO
PUSH BACK. WHY DOES THE ARGUMENT GO IT
WOULD COST BILLIONS MORE TO RENEGOTIATE THE PAY PACKAGE? >> IS INTERESTING THE BOARD
TRIED TO PORTRAY THIS AS A NUISANCE.
THIS IDEA THAT THEY WOULD HAVE TO TAKE ON ADDITIONAL EXPENSE
THAT THE COMPANY ACCOUNTED FOR. HAVING TO SET UP THESE OPTIONS
AND SATISFY THIS COMPENSATION FOR MUSK AND DO IT OVER AGAIN. IT DOES ALSO STRIKE ME FROM THE
LANGUAGE USED THAT ROBIN DONE HOME REFERRED TO THIS IDEA THAT
THE COURT HAD TAKEN AWAY SHAREHOLDER VOICE. IT WAS THE FREEDOM OF SPEECH
ARGUMENT. BUT CORPORATE GOVERNANCE
CRITICS ARE NOT GOING TO LOOK AT THIS FONDLY. THIS IDEA OF THIS AWARD BEING
SLAPPED DOWN ON THE BOARD GOING BACK TO THE WELL WITH THE SAME
PLAN. ED: YOU'VE BEEN READING THE PROXY
FOR THE PAST FOUR HOURS AND 30 MINUTES.
THERE ARE SOME GRANULAR DETAIL IN IT THAT TESLA EXPLAINS THEY
RAN THE COMPENSATION PROGRAM IN THE IDEA OF RE-COMPENSATING IN
TEXAS AND MY READ IS THAT THEY DON'T WANT TO BE ACCUSED OF
USING THE TEXT AS A CORPORATION AS LEVERAGE IN THIS PATENT
ISSUE? >> THEY WANT TO GET THE
SHAREHOLDERS BACK IN AGAIN AND MAKE THE CASE THAT SHAREHOLDERS
IF THEY DID NOT ALREADY KNOW WHAT WENT INTO THIS AWARD.
THE DELAWARE COURT BROUGHT TO LIGHT A LOT OF THESE DETAILS AND MAKE CLEAR WITH THE
SHAREHOLDERS, ARE YOU OK WITH THIS OR AREN'T YOU?
WE HAVE HEARD RUMBLINGS OF THIS IDEA OF THE RETAIL SHAREHOLDERS
WERE IN AN UPROAR BASED ON THE VOLUME OF COMPLAINTS ABOUT THE
WAY THIS WAS HANDLED. TESLA IS SAYING THAT FOUR OF HIS 10 BIGGEST INSTITUTIONAL
INVESTORS COMMUNICATED THAT THEY WERE IN SUPPORT OF THIS
AWARD. THERE IS SOME REASON TO THINK
THAT PERHAPS THE STANDS A CHANCE OF BEING APPROVED JUST
AS IT WAS IN 2018. ED: IT WAS A LOT OF DENSE TAX TO GO
THROUGH. GREAT WORK, THANK YOU VERY MUCH.
PIERRE FERRAGU FROM NEW STREET RESEARCH WHAT IS THE STORY OF
TESSA RIGHT NOW? PIERRE:
THE ONE SENTENCE WOULD BE THIS IS A CAR MANUFACTURER. IN ORDER TO BE SUCCESSFUL IN
MANUFACTURING CARS AS A PLATFORM TO DO ADDITIONAL
AMAZING THINGS. DRIVERLESS DRIVING, THEY ARE
MAKING EXCEPTIONAL PROGRESS. IN THE LONG TERM, THE GOALPOSTS
OF BEING ABLE TO DO ROBOTAXI. IN THE OPPORTUNITY TO DEVELOP
ROBOTS ON THE PLATFORM AND THESE THINGS WILL TAKE YEARS. ELON MUSK IS VERY IMPATIENT AND
TENDS TO ACCELERATE THAT MOMENTUM BUT IT WILL TAKE YEARS.
IN THE MEANTIME IT STILL IS SUCCESSFUL CAR MANUFACTURER,
GAIN SHARE IN THE MARKET AND IN THE NEXT 2, 3 YEARS TO CONTINUE
TO GROW SUSTAINABLY WITH REVENUE GROWTH AND MARGIN
EXPANSION. ED: IT WAS A LOADED QUESTION BUT
YOU DIDN'T GIVE ME ONE SENTENCE. THE REASON I ASK IT IS BECAUSE
I'M TRYING TO UNDERSTAND THE DOWNWARD PRESSURE ON THE STOCK
AND I DON'T THINK IT HAS MUCH TO DO WITH THE PROXY.
WITH ALL THE HEADLIGHTS OF THE FOUR DAYS WHICH WAS THE MOST
INTEREST TO YOU? PIERRE:
OF THE LAST FEW DAYS THE MOST IMPORTANT I'VE HEARD, TO DIGEST
THE HEADLINE FROM LAST WEEK. WE HAVE HAD ELON MUSK IN THE
DESIGNER. THIS UNDERSTANDING THE PROBABLY WHAT'S HAPPENING TO TESLA
THEY ARE DEVELOPING THE ROBOTAXI FOR NOW BECAUSE IN
ORDER TO RAMP UP MILLIONS OF UNITS OF MEXICO IS STILL TOO
HIGH FOR THREE YEARS TO WAIT. MY EDUCATED GUESS, LET'S GO ALL
IN ON ROBOTAXI. AND THEN LET'S GET BACK TO
MANUFACTURING LATER. THAT WAS THE LAST BIG THING OF
48 HOURS. CAROLINE: I LOVE THE FACT THAT YOU GIVE
US YOUR REASONING. SHOULD IT BE DOWN BY A THIRD
THIS YEAR? PIERRE: IT'S A COMPANY THAT MAKES
ELECTRIC CARS SAID THEY WERE IN THE FUTURE OF CARS. AND NO ONE CAN MAKE ELECTRIC
CARS IS GOOD AND IS COST EFFICIENTLY.
THIS GAP IS WIDENING. I JUST RECENTLY DROVE THE
HIGHLANDER. IT IS STILL MIND BLOWING. IN TERMS OF DEVELOPMENTS I HAVE A LOT OF SYMPATHY BECAUSE TESLA
HAS BEEN HITTING A WALL IN TERMS OF GROWTH.
HAS BEEN FORCED TO RAISE HIS PRICING. THEY HAVE TO RESET THE BAR.
THAT WON'T HAPPEN OVER A FEW WEEKS. IT'S STILL NOT ENOUGH TO
CONVERT . YES, I HAVE SYMPATHY FOR THAT. IT CONTINUES TO WORK ON LONG
TERM MOON SHOTS LIKE THE ROBOTAXI.
IT WILL TAKE YEARS OF RECOVERY. CAROLINE:
GIVING US THE SHORT-TERM AND LONG-TERM. MEANWHILE, TECH EARNINGS, THEY
ARE UPON US. WE WILL DIVE DEEPER INTO WHAT
WE SHOULD EXPECT. CAROLINE: A S M L THE CHIP MANUFACTURER
HAVING ITS WORST DAYS SINCE 2022. NEVERTHELESS WE SEE A PULLBACK
BECAUSE EARNINGS DISAPPOINT. IN TERMS OF REVENUE, IT WILL BE
LOWER THAN THE MARKET ANTICIPATED. SAMSUNG PULLED BACK ON SOME OF
THE OWNERS THEY BOUGHT FOR THEIR CHIPMAKING EQUIPMENT.
THIS SHOWS A CHIP SECTOR THAT'S RECOVERING.
BUT WHAT OF THE AI REVOLUTION? THERE ARE NUMBER ONE MARKET IS
CHINA. HALF OF THEIR REVENUE IS COMING
FROM CHINA EVEN THOUGH WE RECEIVE THOSE HIGH YOU EV GOING
TO CHINA. ED: CHINA HISTORICALLY IS A BIG
MARKET. THE HISTORIC ANXIETY IS AROUND
TAIWAN, SOUTH CAROLINA. THE DROP WAS QUARTER ON QUARTER
60%. BY MACHINES THAT MAKE CHIPS. LET'S DIG INTO THESE MARKETS.
TECH EARNINGS AROUND THE CORNER. IPEK OZKARDESKAYA FROM
SWISSQUOTE GROUP THE U.S. IS SAYING COME AND BUILD CHIP
FACTORIES IS GOING TO BE GREAT AND IT GAVE US CAPEX OUTLOOKS
FOR THIS YEAR AND SOMEHOW IT'S NOT SO ROSY? IPEK: THIS IS EYEBROW PRICING AN
IMPORTANT TO NOTE THAT IN THE SECOND HALF OF THIS YEAR IS
GREAT TO SEE A REBOUND IN THE CAP THEIR FULL YEAR OUTLOOK
UNCHANGED. THIS DOES OINTMENT HAS LEFT A
SOUR TASTE IN INVESTORS MOUTH AND WE ACTUALLY THINK AT SOME
POINT THE GROWTH AND GROWTH EXPECTATION FOR CHIPMAKERS WILL
BE LEVELING OUT. IT'S JUST TO SEE IF WE SEE
THESE EXPECTATIONS SLOW DOWN. THAT COULD TRIGGER A SIZABLE
CORRECTION AND PROFIT-TAKING. THEY EXPECT AI TO CONTINUE TO
CONTRIBUTE TO THE REVENUES. WE EXPECT AI TO CONTINUE BUT
MAYBE NOT IN THE SAME WAY. WE EXPECT CHANGES WITHIN THE AI
SEGMENT. WE SAW IN THE FIRST PHASE, A
BENEFIT TO COMPANIES IN CHIPMAKERS, DATA CENTERS.
ALL OF THESE COMPANIES THAT PROVIDE AI TOOLS TO OTHER
COMPANIES. WE ARE THINKING THERE WILL BE A
SECOND PHASE OF THE AI RALLIES THAT WILL BENEFIT TO COMPANIES
THAT INVEST HEAVILY IN AI. I THINK EVEN THOUGH WE SEE SOME
DISAPPOINTMENT AND CHIPMAKING EARNINGS. IT WILL NOT END.
CAROLINE: FOR THE REST OF THE EARNINGS
SEASON, AI EXPECTATIONS? IPEK: THE EXPECTATIONS AROUND EARNINGS GROWTH AROUND 40% FOR
THE FIRST QUARTER. THAT IS STILL DOWN FROM 55%. IF THESE SIGNAL OUT THINGS LIKE
APPLE AND TESLA THAT HAVE BEEN IN TROUBLE WHILE THE
EXPECTATION OF EARNINGS GROWTH GOES UP TO 18%. NVIDIA, MICROSOFT, GOOGLE,
FACEBOOK. WE WILL BE INTERESTED IN WHO
WITHIN THIS AI SEGMENT WILL BE PROFITING FROM AI? CAROLINE: JPMORGAN CHASE CEO JAMIE DIMON.
HE IS LAYING OUT HIS VISION FOR THE FUTURE OF MONEY IN THIS AI
WORLD. THIS IS WITH BLOOMBERG ORIGINALS HOUSE EMILY CHANG.
TAKE A LISTEN. JAMIE: FOR ANY BUSINESS WHEN YOU
THINK ABOUT RISK THINGS COULD GO TERRIBLY WRONG, CAN YOU
SURVIVE THEM? IT COULD BE TECHNOLOGY,
GOVERNMENT REGULATIONS, IT COULD BE THE WEATHER IF YOU ARE
A RESTAURANT. THEY COULD CLOSE YOU DOWN AND
IF YOU LOSE THIS WEEK'S BUSINESS YOU OUT OF BUSINESS. EMILY: HOW COULD FINTECH REPLACE BANKS?
JAMIE: HE'S NOT WRONG THE TECHNOLOGY
CHANGES EVERYTHING. WHAT IS BANKING?
SOMEBODY HAS TO HOLD THE MONEY, SOMEONE HAS TO MOVE THE MONEY,
SOMEONE HAS TO RAISE THE MONEY. SOMEONE HAS TO RESEARCH THE
MONEY. THOSE SERVICES WILL STILL NEED
TO BE AROUND AND TECH HELPS US DO A BETTER JOB OF IT.
I HAVE BEEN WRITING ABOUT BIG TECH AND ARE BUSINESS. WE HAVE FINTECH AND THEY HAVE
BIG TECH. I WOULD BE AGAINST AN UNFAIR
USE OF THEIR POSITION TO DOMINATE A BUSINESS. >> APPLE IS GOING INTO
FINANCIAL. JAMIE:
IF THEY HOLD MONEY AND MOVE MONEY THEY ARE A COMPETITOR.
WE PARTNER WITH PEOPLE. EMILY: EXISTENTIAL THREAT?
JAMIE: IF WE WERE COMPLACENT ABOUT IT,
YES. ED: THAT WAS JPMORGAN CHASE CEO,
JAMIE DIMON. HE IS ONE OF THE MOST OBSESSED
ABOUT PEOPLE. A HIGHFLYING EXECUTIVE.
THE CIRCUIT SERIES TO YOU GET PEOPLE IN A CHAIR BUT BEING
THEMSELVES. HOW DID SHE DO WITH THIS TIME
AROUND? EMILY: IN LONDON AND HE WAS JUST THERE
FOR A TECH CONFERENCE. IT WAS THE MOST OF MAKING USE
OF EVERY MOMENT. THE CHITCHAT BEFORE THE FORMAL
SIT DOWN AND WE TALKED ABOUT HOW MANY DAYS HE'S ON THE ROAD
EACH YEAR. CHILDHOOD, FAMILY. I ASKED HOW ARE YOU DOING AND
HE SAID WHAT YOU MEAN? HOW DO YOU JUGGLE IT ALL?
YOU USUALLY ASK THAT TO A WOMAN. YOU DON'T USUALLY ASK JAMIE
DIMON. FAMILY ACTUALLY COMES FIRST AND
THAT IS WHERE WE STARTED AND WE TRIED TO OPEN IT UP FROM THERE.
CAROLINE: YOU GOT HIM TO SPEAK ABOUT HIS
FAMILY AND YOU OUTSIDE OF BOTH MEN AND WOMEN AND HOW AI IS
CHANGING ITS BUSINESS? EMILY:
AI IS A BIG PART OF THE SEASON AS IT'S A HUGE PART OF YOUR
SHOW. WE CAN AVOID IT. ONE OF THE QUESTIONS I HAD FOR
HIM CHATGPT I HAVE 30 YEARS WHAT SHOULD I DO WITH MY MONEY?
IT'S ALREADY EMBEDDED IN EVERYTHING AND LEARN MORE AND
MORE ABOUT YOU. WHAT IF YOU ASK HOW TO GET RICH
QUICK AND HE SAID I HOPE IT TELLS YOU THAT'S IMPOSSIBLE. ED:
REAL QUICK, WHAT ARE YOU DOING THIS SEASON? EMILY:
WE GO TO SEE MARY BARRA IN DETROIT. WE GET TO KNOW HER
BEHIND-THE-SCENES. ED: TESLA OFF .7%.
STILL DOWN FOR FOURTH STRAIGHT SESSION.
WE TALKED ABOUT THE REASONS WHY EARLIER IN THE SHOW TO STOP THE
BELOW $500 BILLION NOW IN MARKET CAP.
I AM LOOKING FOR STORIES, CLEAR DOWNWARD DIRECTION IN THE
MARKET. TESLA IS ONE NAME THAT CONTRIBUTES.
BITCOIN IS INTERESTING. DURING THE COURSE OF THE SHOW
WE ARE NOW DOWN TO 6000 U.S. DOLLARS PER TOKEN ON BITCOIN A
DROP OF 4% ON THE SESSION OF AN ASSET THAT THERE -- TRADES 24/7.
ON THE BLOOMBERG TERMINAL THERE WITH RANTING ABOUT THE REAL
WORLD USE CASE. ATM'S IN LATIN AMERICA BECOMING
MAINSTAY AND THE INDUSTRY BRACING.
LOTS OF PEOPLE SAY THEY ARE READY.
LOOK AT TECHNOLOGY RATES OF STOCKS LINKED TO CRYPTO.
THEY ARE ALSO SEEING DOWNWARD PRESSURE AND WE HAVE OTHER
PIECES OF NEWS FROM THAT INDUSTRY TOO. >> THE GRAYSCALE INVESTMENT CEO
SAYS THE MARKET FOR U.S. SPOT GET ONE -- SPOT BITCOIN
ETF IS STILL RELATIVELY NEW. IN AN EXCLUSIVE CONVERSATION
THE CEO SPOKE ABOUT THE SEC APPROVAL OF BITCOIN ETF AND THE
LONG ROAD TO REGULATORY APPROVAL. >> EVEN THOUGH THEY HAVE NOW
BEEN IN MARKET FOR THREE AND A HALF MONTHS WE STILL DON'T HAVE
LISTED OPTIONS ON SPOT BITCOIN ETF'S.
IT IS AN IMPORTANT FEATURE INVESTORS WANT AND DESERVE.
IT CAN HELP INVESTORS MANAGE THEIR POSITIONS AND MANAGE RISK.
ULTIMATELY I BELIEVE THE SEC SHOULD APPROVE THESE THOUGH
THEY ARE ONCE AGAIN NOT IN A POSITION TO TROT -- TREAT SPOT
BITCOIN ETF'S FROM BITCOIN FUTURES BASED ETF'S. ED: MOVING ONTO STABLE COINS.
AMID A PUSH IN THE HOUSE AND SENATE TO PASS SUCH LEGISLATION
AS SOON AS NEXT MONTH. SENATOR LOOMIS AND SENATOR
GILLIBRAND ARE PROPOSING A MEASURE THAT WOULD BAN
ALGORITHMIC STABLE COINS SAYING THE BILL WOULD PROTECT
CONSUMERS AND THE U.S. DOLLAR WHILE ENABLING
INNOVATION IN PAYMENT. I SAW A HEADLINE ON THE
TERMINAL THIS MORNING THAT SAYS THE LEGISLATION HAS MOMENTUM.
DOES IT? KAILEY: THIS IS AN INITIATIVE BY THESE
SENATORS THAT HAVE INTRODUCED IN THE PAST WIDER LEGISLATION
TO SET REGULATORY STANDARDS FOR THE INDUSTRY AS A WHOLE.
THIS IS A MUCH NARROWER EFFORT AND PERHAPS THE NARROWNESS
COULD GET THIS ACROSS THE FINISH LINE IN A WAY OTHER
EFFORTS HAVEN'T. WE ARE TALKING ABOUT A
FRAMEWORK FOR STABLE COINS THAT WOULD BAN ALGORITHMIC STABLE
COINS. AN EXAMPLE OF AND AROUND GRZELCYK -- AND ALGORITHMIC
STABLE COINS THAT LOOMS LARGE IN OUR HEAD IS TERRA USD THAT
WAS SUPPOSED TO BE PAID ONE TO ONE BY THE DOLLAR BUT INSTEAD
OF BEING BACKED BY RESERVE USE SMART CONTRACTS TO TRY TO KEEP
THE PEG THAT WORKED UNTIL IT IS NOT AND IT COLLAPSED ON A
FABULOUS FASHION WITH $40 BILLION WIPED OUT.
THEY WANT TO AVOID THAT IN THE FUTURE.
THIS REGULATION WOULD NOT ALLOW THOSE AND REQUIRE ONE TO ONE
RESERVE. OTHER GUIDELINES AS WELL AS TO
THE AUTHORITY FEDERAL AND STATE REGULATORS WOULD HAVE.
IT WOULD ESTABLISH THE FBI SEE AS BEING ABLE TO RECOVER LOST
ASSETS SHOULD THE STABLE COINS COLLAPSE.
THIS IS PROBABLY A PRODUCT OF WHAT WE HAVE SEEN IN THE PAST.
WILL THE INITIATIVE MOVE FORWARD?
THAT QUESTION WILL BE LEFT TO THE DEMOCRATIC SENATOR FROM
OHIO AND CHAIR OF THE BANKING COMMITTEE SHERROD BROWN,
LARGELY CRYPTO SKEPTIC. THIS WEEKEND HE SUGGESTED HE
COULD SEE THE STABLE GOING MEASURE ATTACK -- ATTACHED TO
OTHER MEASURES. WE WILL SEE IF THE INITIATIVE
MOVES FORWARD IN THE SENATE. OUR NOTICE AS WELL AND HAD A
HOUSE THE CHAIR OF THE FINANCIAL SERVICES COMMITTEE
PATRICK HENRY AND RANKING MEMBER MAXINE WATERS ARE
WORKING ON A STABLE GOING EFFORT OF THEIR OWN. >> MEETING WITHIN A CHUCK
SCHUMER ABOUT THIS ALREADY. MORE BROADLY HOW NECESSARY IS
THIS FOR THE INDUSTRY TO HAVE SOME SORT OF ROBUST SET OF
RULES, OF GUARDRAILS? WE HAVE ALREADY SPOKE WITH THE
EUROPEAN COMMISSION ABOUT THEY -- HOW THEY ARE TRYING TO
ENFORCE REGULATION, AND AT LEAST ITS CLARITY OF SOME SORT. >> CLARITY IS OFTEN WHAT THIS
INDUSTRY IS ASKING FOR. THIS DOES NOT GO AS FAR AS THE
INDUSTRY WOULD LIKE, BUT IT DOES ADDRESS A CERTAIN PART OF
IT. WE HAVE HEARD FROM GROUPS LIKE
THE BLOCK CHAIN ASSOCIATION THAT THEY ARE SUPPORTING THE
STABLE GOING EFFORT. WHEN I HAVE TALKED TO PEOPLE
HERE IN WASHINGTON A LOT OF THEM HAVE EXPRESSED MORE
OPTIMISM THAT STABLE GOING LEGISLATION IT'S THE MOST
LIKELY THING TO GET THROUGH THIS CONGRESS VERSUS MORE WIDE,
SWEEPING LEGISLATION THAT WOULD PERHAPS DELINEATE FOR EXAMPLE
WHAT THE FCC WOULD HAVE CONTROL OVER VERSUS THE CFTC.
THIS HAS PROVEN MORE DIFFICULT TO DO ON CAPITOL HILL.
WE HAVE SEEN AN EFFORT GET THROUGH THE FINANCIAL SERVICES
AND AGRICULTURAL COMMITTEES IN THE HOUSE. IT WOULD DELINEATE THE
REGULATORY LAND, IF YOU WILL, THE TERRITORY FOR THOSE TWO
DIFFERENT AGENCIES. THAT HAS NOT MOVED FORWARD
FURTHER. IN THE MEANTIME YOU PROBABLY
KNOW WELL BASED ON YOUR CONVERSATIONS AT BLOOMBERG
TECHNOLOGY, THE INDUSTRY EXCEEDS ENFORCEMENT AND IT WILL
STAY THAT WAY UNTIL CONGRESS MOVES FORWARD SICK TANGIBLY --
SUBSTANTIALLY. CAROLINE: THANK YOU. THE SEC BLOCKED THIRD-PARTY
MESSAGING APPS AND TEXTS FROM EMPLOYEES WORK MOBILE PHONES.
IT INCLUDES WHAT'S UP AND I MESSAGE.
THE SEC SAYS THIS WILL LOWER RISK THEIR SYSTEMS CAN BE
COMPROMISED AND ENHANCE RECORD-KEEPING. ED: THE CEO OF ATOS, A COMPANY
STRUGGLING WITH TEMPING SHARES AND A WALL OF DEBT IS CONFIDENT
FRENCH I.T. COMPANY WILL BE SAVED.
THE CEO SPOKE IN AN EXCLUSIVE INTERVIEW WITH BLOOMBERG IN
PARIS. >> WE ARE ACTUALLY WORKING WITH
OUR CREDITORS, BOTH OUR BANKS AND BONDHOLDERS FOR A SOLUTION
TO OUR HIGH LEVEL OF DEBT AND THE MATURITIES COMING DUE IN
THE NEXT 18 MONTHS. THE DIALOGUE IS VERY POSITIVE. WE ARE OFFERING DEBT
CONCILIATION, AS YOU MENTIONED, MEDIATORS ARE HELPING THOSE
DISCUSSIONS. I BELIEVE EVERYBODY IS ALIGNED. WE RECENTLY HAD LIQUIDITY FROM
THE SAME BONDHOLDERS AND BANKS. AGAIN, IT IS AN INDICATION
EVERYBODY IS ALIGNED TO FIND A SOLUTION. >> WHAT ELSE CAN BE THOUGHT OF
THE PROPOSAL APART FROM THIS GROUP OF BONDHOLDERS? WILL WE SEE FOR EXAMPLE, ASSET
DISPOSAL AHEAD OF NEXT WEEK? IS THAT A POSSIBILITY?
OR DO YOU TOTALLY EXCLUDE THIS? >> WE HAVE PRESENTED A
COMPREHENSIVE PLAN THAT INCLUDED ALL OF THE ASSETS OF
ATOS AND NOW WE WILL HAVE TO SEE WHAT PROPOSALS WILL COME
SOON. SOME OF THEM WILL KEEP THE WHOLE OF THE COMPANY TOGETHER.
ONE OF THOSE PROPOSALS IS LIKELY TO COME FROM ONE POINT,
ONE OF OUR LARGEST SHAREHOLDERS AND OTHERS WILL COME FROM
BONDHOLDERS THAT ALSO IF INTERESTED IN KEEPING THE WHOLE
COMPANY. BUT WE CANNOT FORGO ANY POTENTIAL PROPOSAL THAT MAY
COME IN AND ENTAIL DIFFERENT IDEAS LIKE ASSET DISPOSAL. >> WILL THIS PLAN BE ABLE TO
SAVE ATOS? >>ATOS IS A GREAT COMPANY AND I
BELIEVE WE WILL COME UP WITH A PLAN AND THE COMPANY WILL
SUCCEED LONG-TERM. >> SO IT WILL BE SAVED? >> IT WILL BE SAVED. CAROLINE: COMING UP, WE WILL BE JOINED BY CHECK OUT THE QR CODE FOR THE
DETAILS. WE WILL SEE YOU IN SF FOR
BLOOMBERG TECH. THIS IS BLOOMBERG. CAROLINE:
TODAY'S VC SPOTLIGHT LOOKS AT SOME OTHER WINNING STRATEGIES,
THE FORMULAS USED BY EARLY A NATIVE ENTERPRISE COMPANIES.
THAT IS THE FOCUS OF MENLO VENTURES' LATEST AI PLAY LOOK.
-- PLAYBOOK. YOU HAVE PUT OUT THE SEVEN
GOLDEN ROLES FOR GENERATIVE AI APPS. IT'S NOT THE FOUNDATIONAL
MODELS, BUT THE APPLICATIONS THAT CAN BE BUILT UPON THE
MODEL SENT USED ACROSS INDUSTRY, SALES, OR MARKETING.
WHAT HAVE YOU LEARNED ABOUT THE SUCCESS -- SIMILARITIES IN
THESE BREAKOUT SUCCESSES WE HAVE SEEN? MATT: THIS IS THE FASTEST INNOVATION
CYCLE WE HAVE SEEN ACROSS MANY LIKE MOBILE, CLOUD, ETC..
WHAT HAS HAPPENED TO CREATE THE FOUNDATION FOR APPLICATION
INNOVATORS TO MOVE AS QUICKLY AS THEY WANT TO IS YOU NEED THE
INFRASTRUCTURE SIDE BUILT OUT. YOU HAVE THE BRAIN, THE HEART
DENTAL IN SOMETHING THAT HEART AND SOUL IN SOMETHING LIKE
ANTHROPIC AND SURROUNDING DATA TO GET TO THE MODEL-LIKE
STRUCTURE, CLEAN LAB, OR PINECONE THAT CAN HELP YOU
CURATE DATA AND GET IT TO THE MODEL. THAT IS WELL UNDERWAY. WE ARE AT A TIPPING POINT WHERE
THE INFRASTRUCTURE STACK IS PRETTY WELL SOLIDIFIED.
NOW WE WILL SEE A 10 YEAR INNOVATION CYCLE AROUND
APPLICATIONS THAT WILL MOVE FASTER AND FASTER NOW THAT THE
TOOLING AND INFRASTRUCTURE IS IN PLACE. WHAT WE LOOK AT IN THE
REPORTERS, WHAT ARE SOME OF THE EARLY BREAKOUT APPLICATIONS?
WHAT HAVE THEY DONE DIFFERENTLY? WE CAME UP WITH SEVEN GOLDEN
ROLES. THINGS LIKE HAVING ALMOST AN
INFINITE CONTENT LOOP. THINK ABOUT APPLICATIONS BEFORE.
YOU HAD TO HAD -- HAVE A DESIGNER DESIGN CREATIVE FOR
EACH POTENTIAL CAMPAIGN. YOU ATTEST THAT, TAKE IT BACK,
ITERATE. GENERATIVE AI CAN MAKE DIFFERENT CAMPAIGNS THAT CLOSED
THE LOOP TO HAVE A CONSTANT FEEDBACK SYSTEM.
A COMPANY THAT DOES THAT WELL IS CALLED TYPEFACE.
IT IS THE FORMER CTO OF ADOBE, BASICALLY RE-CREATING THE ADOBE
CREATIVE CLOUD WITH GENERATIVE AI. THAT IS ONE VERY CONCRETE
EXAMPLE. CAROLINE: THAT IS ONE OF YOUR PORTFOLIO
COMPANIES. WHAT IS INTERESTING IS, WHAT
SETS THAT PARTICULAR BUSINESS APART FROM OTHERS YOU ARE. ?
YOU ALSO SAY YOU WANT TO SEE WITHIN THE AI APPS TARGET WORK
THAT IS HIGH-VALUE, HIGH-VOLUME, OR FACING LABOR
SHORTAGES. BASICALLY, WHERE WILL AI HAVE
THE BIGGEST IMPACT? WHAT ARE THE WINNING FORMULAS
THERE? MATT: THERE ARE TWO WAYS OF
GENERATIVE AI MODEL CAN WORK. AS AN ASSISTANT, A COPILOT
WHERE IT MAKES A WORKER SMARTER, BETTER, AND MORE
EFFICIENT OTHER JOB. -- AT THEIR JOB.
SOMETIMES IT CAN REPLACE THE JOB AND ALLOW A WORKER TO DO
SOMETHING ELSE, LIKE A HIGHER VALUE ACTIVITY LIKE CUSTOMER
SERVICE. LOOK FOR THE PATTERN BASED
HIGH-VOLUME WORKFLOWS. ON THE OTHER END OF THE
SPECTRUM THERE ARE HIGH-VALUE, MAY BE A LOWER AMOUNT OF PEOPLE
WORKFLOWS. LIKE A PARALEGAL THAT SPENDS
ALL THIS TIME DIGGING THROUGH DOCUMENTS AND MATCHING TERMS
AND THINGS WHEN THEY COULD DO THE ANALYTIC WORK IF A SYSTEM
BUILT OUT FOR THEM. THAT IS WHAT IS BEING
REIMAGINED HERE WITH GENERATIVE AI.
HOW DO YOU TAKE THE BULK WORK AND ALLOW WORKERS TO DO MORE
HIGHER VALUE ACTIVITIES ON TOP OF THAT? ED:
I WANT TO DISCUSS HOW ABOUT WORD OR -- HOW BACKWARD OR
FORWARD LOOKING YOUR REPORT IS AND HOW CROWDED THE FIELD OF
ACTIVITY IS IN THIS SPACE. CAROLINE AND I TALK ABOUT
COMPANIES AND PLATFORMS TARGETING DEVELOPERS AND APPS
REGULARLY. AN EXAMPLE BEING SALESFORCE AND
THE APP EXCHANGE. THEY HAVE BROUGHT IN A
GENERATIVE AI LIAR TO THEIR EXISTING CASH LATER -- LAYER TO
THEIR EXISTING PRODUCTS. MATT: IT'S EXTREMELY BUSY. IN OUR PORTFOLIO OVER 50
COMPANIES EARLY LAST YEAR MAYBE 20% WERE DOING SOMETHING WITH
GENERATIVE AI AND NOW IT IS NEAR 100%.
THAT IS A GOOD PROXY FOR THE MARKET.
IF YOU ARE AN EXISTING SOFTWARE COMPANY NOT DOING SOMETHING
WITH GENERATIVE AI YOU ARE FALLING BEHIND.
WHAT WE ARE MOST EXCITING ABOUT HIS PEOPLE REBUILDING FROM THE
GET GO NOW WITH NEW CAPABILITIES OF GENERATIVE AI
LIKE A COUPLE I HAVE MENTIONED TO YOU MOST CREATIVE AND
INNOVATIVE WAY TO DISRUPT APPLICATIONS IS TO START WITH A
FOUNDING TEAM THAT HAS THE DNA AROUND AI AND THINKS ABOUT HOW
TO BUILD THE APPLICATION FROM THE BOTTOM UP THAT WAY.
WHENEVER YOU BOUGHT SOMETHING ON LATER IT IS BENEFICIAL.
IT IS ADDITIVE. IT WILL BE GREAT FOR SALESFORCE
AND OTHER COMPANIES. WHEN ANOTHER COMPANY COMES IN
AND SAYS, THIS APPLICATION SHOULD NOT EVEN EXIST WITHOUT
GENERATIVE AI. TAKE A COMPANY LIKE HELIO'S,
DOING GENERATIVE AI FOR A THERAPIST CONVERSATION.
YOU CAN LISTEN TO THE CONVERSATION AND USE YOUR OWN
MODEL TO PARSE THAT AND GIVE DR. NOTES AS WELL AS A
POTENTIAL DIAGNOSIS AND USE A GENERATIVE AI TO PACKAGE THAT
AND CURATE THE CONTENT THAT COMES OUT OF IT.
THESE ARE CAPABILITIES ARE MODEL WAS NEVER ABLE TO PROCESS
BEFORE, NOR SYNTHESIZE IT DOWN TO SOMETHING AS PRECISE OR
IMPORTANT AS A DIAGNOSIS. ED: ONE OF YOUR BULLETS IS BILLED
WERE INCUMBENT ARMED, CANNOT, OR WILL NOT.
OFTEN IN SILICON VALLEY SOMETHING GETS BUILT BECAUSE OF
FOUNDER REALIZES THERE IS A PROBLEM BECAUSE THEY RAN
ANOTHER TECH COMPANY WHERE THEY WERE FRUSTRATED BY SOMETHING.
YOU HAVE A SENSE THAT END MARKETS KNOW THEIR USE CASES
YET? HOW THEY ARE SUPPOSED TO BE USING GENERATIVE AI IN WHATEVER
THEIR BUSINESS DOES? MATT: THAT'S MY POINT.
EVERYBODY KNOWS GENERATIVE AI IS A GREAT WRITER THAT CAN TAKE
ALL THE CONTENT YOU HAVE, SYNTHESIZE IT DOWN, AND HELP
PEOPLE GET THROUGH IT REALLY QUICKLY.
IF YOU HAVE A GRAPH OR A SET OF OUTPUT YOU CAN DISTILL THAT
DOWN. IT MAKES IT SO MUCH MORE EFFECTIVE FOR THE USER TO
CONSUME THE OUTPUT OF EUROPE RECURSION.
BUT THAT'S KIND OF TABLE STAKES. WE ARE MOST INTERESTED IN HOW
YOU ARE USING THAT TECHNOLOGY TO MAKE THE APPLICATION
COMPLETELY DIFFERENT THAN WHAT THE INCUMBENT HAS DONE IN THE
PAST. THAT IS REALLY THE OPPORTUNITY HERE.
WE HAVE SEEN A BUNCH OF EXAMPLES OF THE LEGAL VERTICAL,
A FAST MOVER OUT OF THE GATE IN AREAS LIKE THAT.
I ALREADY MENTIONED CUSTOMER SERVICE.
IT IS DIFFERENT WHEN YOU SAY LET'S CHANGE THE ENTIRE
WORKFLOW VERSUS BOLT ON CAPABILITY AFTER THE FACT. >> MENLO VENTURES PARTNER MATT
MURPHY, THANK YOU VERY MUCH. NINE POP -- CAROLINE:
TOSHIBA IS SEEKING TO CUT 5000 JOBS, ROUGHLY 10% OF ITS
HEADCOUNT IN JAPAN WHAT THE NIKKEI IS CURRENTLY REPORTING
AND THE MOVE COULD INITIATE ONE OF JAPAN'S BIGGEST ROUNDS OF
STAFF REDUCTIONS THIS YEAR IN A COUNTRY WITH SOME OF THE
WORLD'S STRICTEST WORKER PROTECTION LAWS.
APPLE IS WEIGHING THE POSSIBILITY OF MAKING SOME
GADGETS IN INDONESIA EXPORTING PRODUCTION BASES BEYOND ITS
LONGTIME STRONGHOLD OF CHINA TO MINIMIZE GEOPOLITICAL RISK AS
TENSIONS MAY RISE BETWEEN THE WORLD'S TWO BIGGEST SUPERPOWERS.
BUSINESS SOFTWARE STARTUP RIPPLING IS IN TALKS TO RAISE
FUNDING BETWEEN $13 BILLION AND $14 BILLION PLANNING TO RAISE
ABOUT $500 MILLION IN VIDEO. TALKS BETWEEN INVESTORS ARE
ONGOING BUT PLANS ARE TO FINALIZE TERMS WITHIN A FEW
WEEKS. RIPPLING HAS SO FAR DENIED
THOSE REPORTS. ED: COMING UP WE WILL BE JOINED BY
THE CEO OF A CARBON CAPTURE CAROLINE:
THE BLOOMBERG NEF SUMMIT IS IN FULL SWING IN NEW YORK.
DISCUSSING HOW TO SHAPE A CLEANER, MORE COMPETITIVE
FUTURE, WE ARE SPEAKING TO A PERSON DOING THAT.
THE CEO OF SVANTE FRESH OFFICE PANEL FROM THE SUMMIT. CLAUDE, YOU ARE PROVIDING THE
TECHNOLOGY, THE FILTERS, THE ABILITY FOR COMPANIES SUCH AS,
SAY, MANUFACTURING MAKERS TO CARBON CAPTURE. HOW? APPLAUD: -- CLAUDE:
WE TOOK OUR NAME SIMILAR TO TESLA ON THE EV.
WE ARE A UNICORN FOCUSING ON CARBON MANAGEMENT BY PROVIDING
SOLUTION TO AVOID CO2 GOING INTO THE ATMOSPHERE IN THE
FIRST PLACE. INDUSTRIAL FACTORIES, PULP AND
PAPER PLANTS AND REMOVING CO2 FROM THE ATMOSPHERE THAT IS
ALREADY ABOVE THE GROUND. WE ARE WORKING WITH THE COMPANY
ON THAT TO PROVIDE FILTERS TO COLLECT CO2 FROM THE ATMOSPHERE.
CAROLINE: YOU HAVE BUILT A LOT OF
PARTNERSHIPS AND YOU ARE WORKING WITH A LOT OF COMPANIES
AND EMITTERS. HOW LONG OF A TIMEFRAME IS IT
TO BUILD THIS, TO MANUFACTURE, TO GET THIS GOING WHEN YOU KNOW
ONE OF YOUR CLIENTS WANTS ACTION IN THIS? CLAUDE: OUR LEGACY AS WE ARE 16 YEARS
IN RESEARCH DEVELOPING TECHNOLOGY AND PRODUCT PROVING
IN THEM MARKET. WE HAVE RAISED $500 MILLION TO
GET WHERE WE ARE. WE ARE BUILDING A FACTORY TO
MAKE THE FILTERS TO EQUIP THE EQUIVALENT OF ONE MILLION TONS. THE WORLD NEEDS TO GET TO 1000
PLANS WITH ONE MILLION TONS. THIS IS FACTORY NUMBER ONE FOR
US. WE ARE ALMOST TO THE CAPACITY
TO DELIVER PROJECTS. LOOK AT ONE SPECIFIC PROJECT
WITH ONE EMAILER. -- EMITTER. USUALLY IT TAKES YEARS OF
DISCUSSION TO EVALUATE HOW WE WILL TAKE A CEMENT FACTORY OR
PULP AND PAPER PLANT AND THEN YEARS TO CONSTRUCT.
THESE PROJECTS TAKE TIME TO DEPLOY.
WE NEED TO DEPLOY AT A RATE OF TWO CAPTURE PLANS PER WEEK FOR
THE NEXT 30 YEARS. >> $318 MILLION LED BY
CHEVRON'S VENTURE ARE MET IN 2021 AND 2022 THERE WAS A LOT
OF ENERGY BEHIND YOUR INDUSTRY AND FINANCIAL BACKING.
HAVE THINGS SLOWED DOWN WITH CORPORATE INTEREST AND PUBLIC
COMMITMENT? >> THE QUESTION IS TWOFOLD.
CORPORATE COMMITMENT HAS BEEN GROWING -- HAS BEEN THERE AND
IS GROWING. THE SUPPORT WE GOT FROM THE OIL
AND GAS INDUSTRY PRIMARILY LED BY CHEVRON IS INSTRUMENTAL IN
US BEING HERE TODAY BEING ABLE TO TALK ABOUT CARBON MANAGEMENT.
BUT, WHAT IS MISSING NOW, TO GROW THE BUSINESS AT THE SCALE
THAT NEEDS TO BE DONE IS WE NEED A PRIVATE EQUITY
INFRASTRUCTURE FUNDS TO COME TO PLAY.
SO FAR, THEY NEVER COME TO THE VALLEY OF DEATH OF EARLY
STARTUP COMPANIES. TO HELP THEM DEPLOY.
THIS IS SOMETHING WE ARE WORKING ON THESE DAYS TO BRING
THE TWO TOGETHER. IT IS THE SUM OF THE FINANCIAL
SECTOR PLUS THE CORPORATE THAT WILL MAKE THIS WORK. FROM A CONSUMER POINT OF VIEW,
THE PUBLIC ACCEPTANCE, I THINK IT IS A SLOW PROCESS.
THE ANALOGY I CAN GIVE YOU IS WE HAVE BEEN THROWING CO2 IN
THE ATMOSPHERE FREELY FOR THE LAST 100 YEARS WITH NO
CONSEQUENCES IN THE MINDS OF PEOPLE. THE ANALOGY IS WASTE
MANAGEMENT. YOUR RUBBISH AT HOME, THE WASTE
MANAGEMENT, SOMEBODY COLLECTS IT, TRANSPORTS IT, RECYCLES,
AND STORES YOUR RUBBISH BECAUSE IT SMELLS AND YOU CAN SEE IT.
YOU CAN'T SEE OR SMELL CO2. SO IT IS DIFFICULT FOR PEOPLE
TO ASSOCIATE A CARBON MANAGEMENT INDUSTRY.
THE PRICE OF COLLECTING YOUR RUBBISH IS ABOUT $150 PER TON
OF CO2 ACQUIRE THE LAND. CAROLINE:
