ANNOUNCER:
FROM THE HEART OF WHERE INNOVATION AND MONEY COLLIDE,
THIS IS "BLOOMBERG TECHNOLOGY." WITH CAROLINE HYDE AND ED
LUDLOW. CAROLINE: I'M CAROLINE HYDE AT
BLOOMBERG'S HEADQUARTERS IN NEW YORK. ED:
I'M ED LUDLOW IN SAN FRANCISCO. THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: APPLE SHARES SLIDE AS THE
IPHONE MAKER SEES A BIG DROP IN CHINA SALES, WITH THE IN
CORRECTION. WE WILL BREAK DOWN EVERYTHING
YOU NEED TO KNOW. ED: WE STAY WITH CHINA AS AMD FACES
A U.S. ROADBLOCK IN SELLING ITS ARTIFICIAL
INTELLIGENCE CHIPS
IN THE CHINESE MARKET. BLOOMBERG EXCLUSIVE AHEAD.
CAROLINE: BITCOIN HITS A FRESH RECORD
SINCE ITS PEAK IN NOVEMBER 2021. WE WILL HAVE COVERAGE OF THE
MARKET AND THOSE MEME COINS IN THE RUSH.
LET'S FIRST CHECK IN ON THESE MARKETS.
BITCOIN IS UP, BUT THE REST OF THE MARKET TRYING TO DIGEST
SOME OF THE RUN-UP WE HAVE SEEN. WE FOCUS IN ON MIXED ECONOMIC
DATA TODAY. THE U.S. SHOWING SOME SERVICES WEAKNESS
AND WE LOOK AHEAD TO TESTIMONY FROM JAY POWELL, HIS SEMIANNUAL
EXPERIENCE IN
TERMS OF THE POLITICIANS.
WHAT WILL THE GRILLING MEAN? HOW MUCH WILL HE BE RETICENT TO
SAY THAT THEY ARE LOOKING AT THOSE RATE CUTS ANYTIME SOON?
WE ARE LOOKING AT 1.8% DOWN. I WANT TO FOCUS ON WHAT IS
HAPPENING IN CHINA, THE TRADENAMES IN THE UNITED STATES
WITH A GOLDEN DRAGON INDEX, OFF BY 1% AS WE SEE A GROWTH
PERSPECTIVE COMING FROM CHINA. HOW WILL THEY GET THERE?
THAT ULTIMATELY WHAT IS THE DEBT THEY ARE GOING TO BE
FUELING IN TERMS OF THE FOCUS ON A I, ON TECHNOLOGY COMING
FROM CHINA? NOT
ENOUGH TO BUOY THE STOCKS
AND CHINESE NAMES. LOOKING AT THE 10-YEAR YIELD,
OFF BY SEVEN BASIS POINTS AS WE ANTICIPATE JAY POWELL'S SPEECH.
A LOOK AT WHAT IS HAPPENING IN THE ASSET CLASS WE NEED TO TALK
ABOUT TODAY. THIS HAPPENED JUST AFTER 9:00
A.M., BUT WE ARE LOOKING AT A 66 BACK TO IT AT THE MOMENT.
WE HAD THAT PSYCHOLOGICAL LEVEL. ALREADY WE HAVE SEEN THE MARKET
CAPITALIZATION ECLIPSED THAT OF 2021 BECAUSE THERE IS MORE BIG
GOING IN -- MORE BITCOIN IN SUPPLY.
WE ARE CURRENTLY UP 9.9% THE COU
RSE OF WHAT HAS BEEN A MEGA
RUN THROUGHOUT 2024. 2023, LOWER, IN THE DOLDRUMS.
BUT WE ARE BACK AT THAT LEVEL WE HAD IN NOVEMBER 2021.
ED, WHAT ARE YOU WATCHING? CAROLINE: THERE IS A LOT -- ED:
THERE IS A LOT IN THE NEWS FLOW HITTING TECHNOLOGY SHARES.
TESLA, A FIRE NEAR ITS BERLIN PLANT HAS HALTED PRODUCTION.
INVESTIGATORS ARE INVESTIGATING WHETHER ARSON WAS THE CAUSE. DATA ON CHINA IS A SOFTER,
SHOWING THAT SALES OF TESLA NOT AS STRONG.
THAT STOCK UNDER PRESSURE. TWO OTHER STORIES.
WE ARE GOING
TO HEAD TO D.C.. BLOOMBERG REPORTING THAT U.S.
OFFICIALS ARE GOING TO BLOCK AMD SELLING A MADE FOR CHINA
LOWER-SPEC GPU. IT IS SOMETHING SIMILAR TO WHAT
NVIDIA DID, AND THAT SEEMS TO BE WEIGHING ON SHARES TOO.
IN LINE WITH THE BROADER MARKET. YOU HAVE APPLE DOWN 2.8
PERCENT, TRADING AT ITS LOWEST LEVEL SINCE OCTOBER. WE HAD DATA FROM COUNTERPART --
COUNTERPOINT RESEARCH. IN THE FIRST SIX WEEKS OF 2024
SALES OF THE IPHONE IN CHINA FELL YOU'RE ON YOUR COMPARED TO
THAT SAME SIX-WEEK PERIOD YEAR AG
O.
I WANT TO BRING IN MARK GURMAN. THE DATA ALSO SHOWS OTHER
HANDSET MAKERS HAD A SURGE IN SALES.
THEREFORE, THE MARKET SHARE PICTURE IN CHINA IS CHANGING,
WITH APPLE DROPPING BELOW 60%, AND HUAWEI BACK ABOUT 16%.
WHAT IS GOING ON? MARK: THIS IS HUGELY SIGNIFICANT.
WE HAVE KNOWN FOR A COUPLE QUARTERS NOW THAT APPLE HAS
BEEN RUNNING INTO ROADBLOCKS IN CHINA BUT -- CHINA.
CERTAINLY THAT NEW HUAWEI PHONE HAS BEEN POPULAR.
THAT NEW DEVICE WITH THE LOCALLY-DESIGN PROCESSOR.
WE HAVE KNOWN FOR A WHILE
THERE IS THIS SENSE OF RENEWED
NATIONALISM IN CHINA, WHERE PEOPLE ARE MAY PUTTING UP
PURCHASES A LITTLE BIT ON THE BACK BURNER AND FOCUSING ON
PURCHASES FROM STATESIDE COMPANIES. THERE HAS BEEN SOME BANDS IN
SOME ORGANIZATIONS OWNED BY GOVERNMENTS, GOVERNMENT
ENTITIES, WHERE THEY DON'T WANT AMERICAN-MADE DEVICES.
THEY DON'T WANT KOREAN-MAY DEVICES LIKE SAMSUNG.
WHAT IS INTERESTING ABOUT THE FIRST SIX WEEKS NUMBER IS IT IS
ACTUALLY A LITTLE WORSE THAN IT SEEMS ON THE SURFACE.
LET'S DO A COMPARISO
N. WHAT HAPPENED LAST YEAR? THE IPHONE -- I-4 14 -- IPHONE
14 CAME OUT. THAT WAS NOT AS MUCH OF AN
UPGRADE WITH THE IPHONE PRO. YOU WOULD THINK A NEW DESIGN
WOULD SELL BETTER, BUT WE ALSO REMEMBER THERE WERE NO SUPPLY
ISSUES THIS YEAR. LAST YEAR THERE WERE
SIGNIFICANT SUPPLY CHAIN ISSUES. THERE WAS A LOT OF PENT-UP
DEMAND IN THE FIRST SIX WEEKS OF 2023. NOT ONLY IS APPLE DOWN, THEY
ARE DOWN IN COMPARISON TO A PHONE THAT WAS NOT IT AS BIG OF
AN UPGRADE AND THEY ARE DOWN WHEN THERE WAS SO MUCH PEN
T-UP
DEMAND FOR THIS DEVICE. SO, CLEARLY NOT A TERRIFIC
SITUATION HERE, BUT I DO SEE SOME MEN SOME SHIFTING THE
IPHONE 16 PRO IS GOING TO LAUNCH LATER THIS YEAR.
THERE ARE SOME COOL NEW CAMERA FEATURES THAT COULD EXCITE THAT
MARKET. THE OTHER THING TO NOTE IS THAT
THE APPLE VISION PRO MIXED REALITY, THAT IS A PRETTY
POPULAR TECHNOLOGY IN CHINA AND ASIA IN GENERAL.
I EXPECT CHINA TO BE ONE OF THE FIRST MARKETS TO GET THAT
HEADSET. IT IS NOT ALL BAD FOR APPLE IN
CHINA. THERE IS GOING TO BE A SHIFT
LATER IN THE YEAR. CAROLINE: THIS DATA COMING FROM
COUNTERPOINT, IT IS NOT -- IT IS THEIR NARRATIVE, NOT APPLE'S.
WHAT ARE WE HEARING FROM APPLE TO REGAIN THEIR?
PUSHED OUT A STORY YESTERDAY ABOUT HOW THEY HAVE BEEN
UPDATING THEIR MACBOOK, BRINGING IN FASTER CHIPS.
WE NEED TO HEAR MORE ABOUT ARTIFICIAL INTELLIGENCE AS WELL.
YOUR SCOOP LAST WEEK ABOUT THE FACT THEY ARE PULLING BACK ON
THE CAR, PUTTING THEIR TECHNOLOGY EXPERTS TO WORK IN
GENERATIVE AI, DOES THAT MEAN WE COULD START TO SEE A REFRE
SH
AND RE-EXUBERANCE AROUND PURCHASING? MARK: THE BIG QUESTION IS IF A LOT OF
THESE NEW AI FEATURES ARE GOING TO BE AVAILABLE GLOBALLY, RIGHT?
IT COULD BE SENSIBLE THAT APPLE FIRST ROLLS THEM OUT IN
ENGLISH-SPEAKING COUNTRIES, RIGHT?
AND THEN THEY HAVE A LONG ROAD MAP AHEAD TO EXPAND THE
FEATURES TO CHINA AND SOME OF THE INTERNATIONAL REGIONS.
I'M NOT SURE THAT AI IS GOING TO GIVE A SIGNIFICANT BOOST TO
THEIR PRODUCT SALES. I THINK AI WOULD BE BETTER --
WOULD BE BETTER SERVED IN TERMS OF REVENUE
FOR YOUR PRODUCT.
WHAT TYPES OF ADVICES CAN YOU ENABLE?
THINGS LIKE MORE ADVANCED HEADSETS, AUGMENTED REALITY
GLASSES, TABLETOP ROBOTICS DEVICES, AND BEFORE IT WAS
CANCELED, THE CAR, OF COURSE. THAT IS SOMETHING TO WATCH.
APPLE IS NOT SAYING MUCH. WHEN THEY LAST SPOKE THEY
SEEMED PRETTY EXCITED ABOUT WHAT WAS GOING ON IN CHINA.
THEY WERE REFERENCING COUNTERPOINT'S PREVIOUS REPORT
THAT INDICATED THE IPHONE IS DOING EXTREME THE WELL AND
EVERYONE WHO TALK NEGATIVELY ABOUT APPLE IN CHINA WAS WRONG.
THIS IS A COMPLETE NARRATIVE SHIFT.
THE FIRST THING YOU SAID WAS IMPORTANT.
DISK IS COUNTERPOINT'S NUMBERS. SOMETIMES THESE NUMBERS ARE
CORRECT. SOMETIMES THEY ARE COMPLETELY
INCORRECT. I WOULD SAY ON AVERAGE THEY
GIVE A FAIR IDEA OF WHAT IS GOING ON.
SO, IT IS POSSIBLE THE REAL SITUATION IS NOT AS BAD AS
COUNTERPOINT IS INDICATING TODAY, BUT CERTAINLY THERE IS
SOME INDICATOR FROM THEM, AT LEAST THAT THINGS ARE NOT AS
GREAT AS ONE WOULD HOPE IF YOU ARE AN APPLE SHAREHOLDER.
CAROLINE: CERTAINLY
HAS TAKEN A BIG HEAD
TO MARKET CAPITALIZATION THE SHIP.
MARK GURMAN, SO FANTASTIC TO RUN THROUGH ALL OF APPLE WITH
YOU. LET'S STAY WITH CHINA. U.S. OFFICIALS HAVE TOLD AMD ITS
ARTIFICIAL INTELLIGENCE CHIP DESIGN FOR THE CHINESE MARKET
IS TOO POWERFUL. THEY CANNOT SELL IT WITHOUT A
LICENSE FROM THE COMMERCE DEPARTMENT.
FOR MORE IT IS MCKENZIE HAWKINS. WHAT IS INTERESTING IS, AMD HAD
NOT BEEN DISCUSSING WHAT THEY HAVE BEEN MAKING FOR CHINA, BUT
YOU GOT THE INSIDE TRACK. MCKINSEY:
HAVE SEEN THIS ST
ORY PLAY OUT BEFORE WITH NVIDIA, WHICH
PUBLICLY SAID WE ARE TRYING TO DESIGN AN AI PROCESSOR FOR THE
CHINESE MARKET TO ALIGN WITH U.S. EXPORT CONTROLS AFTER THOSE
CURBS WERE PUT IN PLACE IN 2022. THEN THE U.S.
MOVED TO TIGHTEN THOSE RESTRICTIONS ABOUT A YEAR LATER.
THAT CAPTURED NVIDIA'S CHIP. THE U.S.
SAID YOU CANNOT SELL THAT TO CHINESE CUSTOMERS.
SINCE THEN WE HAVE SEEN NVIDIA RELEASE NEW PROCESSORS FOR
CHINA THAT THEY SAY ALIGN WITH THE STRICTER RESTRICTIONS, AND
ALSO AMD TRYING TO GET INTO
THIS MARKET AS WELL. AMD DEBUTED A NEW SUITE OF AI
CHIPS IN DECEMBER, AND THIS CHINA-SPECIFIC CHIP IS A LESS
POWERFUL VERSION OF THAT BROADER LINEUP OF PRODUCTS. ED:
RIGHT. THE IMPORTANT THING IS THERE
ARE TWO POTENTIAL LINES OF RULES AMD HAS TO FOLLOW.
THERE IS A TECHNOLOGICAL RESTRICTION, A BLANKET RULE
THAT SAYS YOU CANNOT OFFER ANYTHING IN CHINA OF THIS SPEC,
AND THEN THERE IS THE END-USER-SPECIFIC, WHICH SAYS
YOU CANNOT SELL TO THIS COMPANY. DO WE KNOW WHICH ONE AMD IS
CAUGHT BY? MCKENZIE:
IT IS NOT CLEAR WHICH CHINESE
CUSTOMER WAS TRYING TO BUY AMD CHIPS.
THE PROCESS THEY WENT THROUGH IS, THERE IS A SET OF CHIPS
THAT ARE DEEMED TOO POWERFUL. NO MATTER WHAT IF YOU HAVE
CHIPS OF THOSE SPECS YOU NEED TO APPLY FOR A U.S.
GOVERNMENT LICENSE. THEN THERE IS A LOWER TIER FOR
WHAT YOU HAVE TO NOTIFY THE U.S. GOVERNMENT OF YOUR INTENT TO
SELL THOSE CHIPS TO A CHINESE CUSTOMER AND THEY LET YOU KNOW
WHETHER YOU NEED A LICENSE. THAT IS WHAT HAPPENED TO AMD.
THEY DESIGNED A CHIP THAT FELL BELO
W THE HIGHEST THRESHOLD,
THE MOST STRICT CUT OFF, AND THEN THE U.S.
SAID, ACTUALLY YOU ARE NOT ALLOWED TO GET AN EXEMPTION
FROM THE OVERALL LICENSING REGIME AND YOU ARE GOING TO
HAVE TO GO THROUGH THIS PROCESS. NOW IT REMAINS TO BE SEEN
WHETHER AMD IS ACTUALLY TRYING TO DO THAT OR WHETHER THEY WILL
PIVOT AWAY FROM THE STRATEGY. ED:
AMD, DOWN ONE -- DOWN 1.8%, BUT THE OTHER CHIP NAMES TOO.
TERRIFIC REPORTING. CHINA' IS PLEDGED TO HORNER THE
NATION'S RESOURCES TO SPEED HOMEGROWN SCIENTIFIC
BREAKTH
ROUGHS. WE ARE PRIORITY TO BECOME
SELF-RELIANT IN SPHERES FROM AI TO CHIPMAKING TO TECHNOLOGICAL
SUPREMACY FROM THE U.S.. AT DAY ONE OF THE NATIONAL
PEOPLE'S CONGRESS THE PREMIER LAID OUT THE NATION'S
PRIORITIES, WHICH ARE STILL TECHNOLOGICAL INNOVATION AND
UPGRADING ITS INDUSTRIES, INCLUDING NEW ENERGY VEHICLES.
CAROLINE: LET'S GO OVER TO WHAT IS
HAPPENING IN THE WORLD OF POLITICS.
IT AFFECTS THE WORLD OF TECHNOLOGY.
WE ARE GOING TO BE DISCUSSING AI MISINFORMATION AND WHAT
LOCAL ELECTION OFFICE
S CAN BE DOING TO PREPARE FOR THAT.
THE CONVERSATION COMING UP NEXT. MEANWHILE CHECK OUT WHAT IS
HAPPENING WITH META SHARES. THE REST OF TECHNOLOGY IS OFF
IN SYMPATHY, BUT MORE BROADLY WE ARE LOOKING AT REPORTS THAT
SHOWS META SERVICES ARE HAVING ISSUES. DOWN DETECTIVE REPORTING PLENTY
OF ISSUES, ACROSS INSTAGRAM, FACEBOOK, AND MESSENGER. IRONICALLY, ON X IS WHERE WE
HEARD FROM ANDY STONE, SAYING THEY ARE AWARE AND WORKING ON A
FIX. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
NOW LET'S GET INTO TH
E LATEST FROM TODAY'S SUPER TUESDAY
PRIMARIES. KAILEY LEINZ HAS BEEN VERY BUSY
IN ANTICIPATION OF THIS DAY AND THROUGHOUT IT.
WHAT ARE WE BRACING FOR? KAILEY: WE ARE BRACING FOR WHAT
EFFECTIVELY COULD BE THE START OF THE GENERAL ELECTION
TONIGHT, BECAUSE THE FRONTRUNNER IN THE PUBLIC AND
PRIMARY COULD SWEEP ALL 15 OF THESE STATES, WHICH WOULD GET
HIM NOT EXACTLY AT BUT VERY CLOSE TO THE 1215 DELEGATES HE
NEEDS. NIKKI HALEY IS STILL IN THE
RACE. SHE HAS COMMITTED TO STAYING IN
THROUGH THE CONTEST
TODAY BUT IT IS UNCLEAR IF HER CAMPAIGN
WILL LAST BEYOND TODAY SHOULD SHE NOT COME OUT AS THE VICTOR
IN ANY OF THESE STATES. STATES TO WATCH OUT FOR COULD
BE VERMONT, MAY BE VIRGINIA. IF SHE COULD WIN THOSE STATES
IT IS UNLIKELY SHE WOULD BE VICTORIOUS IN ANY OTHERS. HALEY DOES HAVE FINANCING,
THEORETICALLY, AS SHE PULLS IN MILLIONS OF DOLLARS FROM DONORS.
HER CAMPAIGN SAYS ANOTHER $1 MILLION IN MARCH.
MATHEMATICALLY IT MIGHT NOT BE POSSIBLE FOR HER TO SECURE THE
NOMINATION AFTER TONIGHT, WHICH
MEANS WE COULD BE LOOKING DOWN
THE REMATCH TROUBLE -- REMATCH TUNNEL. ED: I'M LOOKING FORWARD TO JOINING
YOU AND JOE MATHIEU THIS EVENING WITH OUR SPECIAL SHOW
AND COVERAGE. WHEN YOU LOOK AT CALIFORNIA
TRUMP AND BIDEN BASICALLY SAY, I WANT TO GET IT DONE.
EVEN THOUGH IT IS THE MOST POPULAR STATE.
IT IS PROBABLY MORE INTERESTING IS SOME OF THE DOLLARS THAT
ORIGINATE FROM THE STATE AND SOME OF THE INITIATIVES THEY
ARE BACKING. KAILEY: ABSOLUTELY. IN THE DOWN BALLOT RACES
SPECIFICALLY. IF YOU LOOK
AT THE SENATE
PRIMARY TO REPLACE DAN FEINSTEIN -- DIANNE FEINSTEIN,
HAVE THREE MEMBERS OF THE HOUSE WHO ARE COMPETING AGAINST ONE
REPUBLICAN , STEVE GARVEY, YOU MAY KNOW AS A FORMER LOS
ANGELES DODGERS PLAYER. CALIFORNIA HAS A JUNGLE
PRIMARY, WHICH MEANS WHOEVER TWO GET THE HIGHEST VOTES,
THEY'RE THE ONES THAT WILL ADVANCE TO THE GENERAL ELECTION
IN NOVEMBER. CRYPTO PACKS SPECIFICALLY HAVE
BEEN THROWING A LOT OF MONEY AT THIS RACE, SPECIFICALLY
THROWING MONEY AGAINST KATIE PORTER, SPINNING ABOU
T $10
MILLION AGAINST HER, WHICH HAS HELPED ADAM SCHIFF, WHO DOES
HAVE SOME MORE CRYPTO-FRIENDLY LANGUAGE ON HIS CAMPAIGN
WEBSITE. THAT IS ONE OF THE RACES TO
WATCH. WHEN YOU ARE THINKING CRYPTO,
THEY ARE SPENDING MONEY AND OTHER STATES AS WELL, LIKE
ALABAMA AND NORTH CAROLINA. CERTAINLY THE INDUSTRY IS
TRYING TO ADVANCE ITS OBJECTIVES THROUGH DOLLARS THIS
EVENING. ED: KAILEY LEINZ, I WILL SEE YOU
FOR HOURS SUPER TUESDAY COVERAGE. THANK YOU VERY MUCH.
LET'S KEEP THE CONVERSATION GOING.
THERE IS
SOMETHING TO DISCUSS AROUND THE INTERSECTION OF
ARTIFICIAL INTELLIGENCE AND MISINFORMATION IN THIS ELECTION
CYCLE. HERE IS WHAT SOME OF OUR RECENT
GUESTS ON BLOOMBERG TV HAVE HAD TO SAY ABOUT THAT. >> MISINFORMATION WITH
ARTIFICIAL INTELLIGENCE. THEY COULD BE ANOTHER FACTOR
THAT IMPACTS WHAT IS GOING ON AROUND THE ELECTION. >> I DON'T THINK INDEPENDENCE,
REPUBLICANS, OR DEMOCRATS HAVE ANY IDEA ABOUT HOW EFFECTIVE AI
CAN BE IF IT IS IN THE HANDS OF SPECIFIC INDIVIDUALS THAT HAVE
NO MORAL BOUNDARI
ES. >> IF SOMEBODY DOES THAT
DEEPFAKE, WHETHER IT IS JOE BIDEN AND TRUMP, WE ARE GOING
TO BE ABLE TO FIND OUT. >> WHAT WE ARE SEEING ALSO IS
THE DISINFORMATION CAMPAIGNS CAN BE EFFECTIVE WITH AI. >> THERE IS MUCH MORE SUBTLE
MANIPULATION I THINK WE NEED TO WATCH FOR. ED:
LET'S BRING IN MARCI ANDINO. SHE IS THE SENIOR DIRECTOR OF
THE ALEXION INFRASTRUCTURE INFORMATION SHARING AND ANALYSIS CENTER -- ELECTION
INFRASTRUCTURE INFORMATION SHARING AND ANALYSIS CENTER.
IT IS SUPER TUESDAY. SOCIAL MEDIA
IS DOWN.
WHAT DO YOU THINK WILL HAPPEN TONIGHT IN THE CONTEXT OF AI
AND MISINFORMATION? MARCI: THANK YOU SO MUCH FOR THAT
QUESTION. IS -- IT IS A PLEASURE TO BE
WITH YOU. AI IS A NEW TOPIC WE ARE
TALKING ABOUT. YOU'RE TALKING AND TRACKING
FIVE CYBERSECURITY THREATS AS WE MOVE INTO THE GENERAL
ELECTION AND AI IS THE NEW KID ON THE BLOCK, IF YOU WILL.
WE ARE NOT SEEING A LOT OF AI ACTIVITY RIGHT NOW, BUT IT
CERTAINLY HAS THE POTENTIAL TO INCREASE MISINFORMATION
CAMPAIGNS. IT WILL AMPLIFY OR MAGNIF
Y THE
RISK THAT ALREADY EXISTS OUT THERE. CAROLINE: WHAT YOUR ROLE DOES IS, YOU ARE
OFFERING TOOLS, TRAINING TO THOSE OUT THERE IN THE FIELD,
TRYING TO ENSURE THIS IS NOT SPREADING IN THEIR ELECTIONS
ARE BEING RUN FAIRLY. YOU ARE PROVIDING EFFECTIVE
REMEDIATION IF THERE ARE INCIDENTS.
TALK US THROUGH WHAT YOU'RE GO TO IS IN RESPONSE TO ANY SORT
OF SUDDEN SWEEPING OF A MISINFORMATION OUTBREAK THAT
MIGHT OR MIGHT NOT OCCUR AS PEOPLE HAD TO THE POLLS. MARCI: WE HAVE BEEN TALKING WITH
ELECTION OFFIC
IALS OVER THE LAST YEAR ABOUT THE POSSIBILITY
OF SEEING GENERATIVE AI USED TO DISRUPT ELECTIONS.
WE ARE REMINDING ELECTION OFFICIALS THAT THEY NEED TO
COLLABORATE WITH US AND SHARE INFORMATION SO WE CAN PASS THAT
INFORMATION ON TO OTHER ELECTION OFFICIALS SO THEY
MIGHT KNOW WHAT IS COMING IN THEIR STATES. THE MOST POWERFUL THING THEY
CAN DO IS EDUCATE VOTERS, CITIZENS, CANDIDATES, AND EVEN
THEIR LOCAL MEDIA SO WHEN PEOPLE SEE SOMETHING THAT THEY
THINK MIGHT NOT BE EXACTLY RIGHT, THEY KNOW WHERE
TO GO TO
GET ACCURATE INFORMATION. AND THAT IS WITH THE STATE OR
LOCAL ELECTION OFFICIALS. SO, IT IS VERY IMPORTANT THAT
THEY ESTABLISH THEMSELVES AS THE TRUSTED SOURCE OF
INFORMATION. AND THAT EVEN GOES FOR TRAINING
THEIR STAFF. STAFF AND ELECTION OFFICES WORK
LONG HOURS. THEY GET VERY TIRED, SO THEY
ARE MORE APT TO CLICK ON SOMETHING, AND THEY BRING IN A
LOT OF SEASONAL WORKERS, SO THOSE SEASONAL WORKERS MAY OR
MAY NOT HAVE HAD ANY TRAINING, SO IT IS IMPORTANT TO MAKE SURE
THEY ARE TRAINED AND
READY TO GO AS WELL. AND, OF COURSE, USING GOOD
CYBER HYGIENE, PASSWORDS, STRONG PASSWORDS.
TURNING ON MULTIFACTOR AUTHENTICATION ON EVERY
APPLICATION THEY CAN. AND USING OUR NO-COST TOOLS TO
PROTECT THEIR NETWORK, THEIR CRITICAL NETWORKS. ED:
I THINK CYBER HYGIENE IS A NEW ONE FOR US ON THE SHOW.
IS THERE ANY PROOF WE ARE BETTER PREPARED FOR THIS YEAR'S
ELECTION THEN WE WERE IN 2020? MARCI: WELL, THE EI-ISAC, WE HAVE BEEN
WORKING WITH ELECTION OFFICIALS ACROSS THE COUNTRY AND IN THE
TERRITORIE
S TO RAISE THEIR CYBERSECURITY POSTURE. WE HAVE DEPLOYED LOTS OF
SOLUTIONS, CYBERSECURITY SOLUTIONS THAT WOULD HARDEN
THEIR DEFENSES, AND WE HAVE ALSO PROVIDED A LOT OF TRAINING.
WE ARE TALKING TO ELECTION OFFICIALS IN TERMS THEY
UNDERSTAND. FORMER ELECTION OFFICIALS IN
MANY CASES. WE ARE BREAKING THE -- BREAKING
DEMOS AREAS AND UNDERSTANDING THAT CYBERSECURITY IS
EVERYBODY'S RESPONSIBILITY AND THEY NEED TO TAKE ACTION.
I BELIEVE WE ARE BETTER PREPARED, BUT CYBERSECURITY IS
A LONG-TERM GAME. IT
IS NOT A ONE AND DONE. IT IS CONSTANTLY CHANGING, AND
AS YOU STARTED THE CONVERSATION WITH GENERATIVE AI, THAT IS THE
NEW THING THAT WE ARE TRYING TO BUILD DEFENSES AROUND AND
PREPARE ELECTIONS TO DEAL WITH -- ELECTION OFFICIALS TO DEAL
WITH, ESPECIALLY AS WE MOVE INTO THE GENERAL ELECTION.
CAROLINE: GREAT TO HAVE SOME TIME WITH
YOU AHEAD OF THE SUPER TUESDAY. MARCI ANDINO, SENIOR DIRECTOR
FOR THE ALEXION INFRASTRUCTURE INFORMATION SHARING AND
ANALYSIS CENTER. FOR THE FIRST TIME IN NINE
MONTHS,
ELON MUSK IS NO LONGER THE WORLD'S RICHEST PERSON.
WE WILL HAVE MORE FOR YOU. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
TIME NOW FOR TALKING TECH. FIRST UP, ALIBABA SPEARHEADING
ITS SECOND MAJOR DEAL IN AI THIS YEAR, EATING A FINANCING
-- LEADING A FINANCING ROUND AS THE E-COMMERCE FIRM -- THE FIRM
THAT IT BACKED IS A SECURED NOT ONLY FROM ALIBABA, BUT OTHER
INVESTORS. THAT BRINGS ITS VALUATION TO
$2.5 BILLION. EMAAR, FOUR -- MEANWHILE, FOUR
X-TESLA EXECUTIVES HAVE SUED ELON MUSK -- EX-TWITTER
E
XECUTIVES HAVE SUED ELON MUSK. PUBLICLY VOWING TO WITHHOLD
THEIR SEVERANCE TO RECOUP $200 MILLION FROM THE $44 BILLION
DEAL ACCORDING TO THE LAWSUIT. LET'S TALK ABOUT ELON MUSK MORE.
HE HAS BEEN DETHRONED BY JEFF BEZOS AS THE WORLD'S RICHEST
PERSON. THE TESLA FOUNDER LOST HIS
POSITION TO THE AMAZON FOUNDER AFTER SHARES AND TESLA HAVE
BEEN UNDER PRESSURE. THIS IS BEZOS'S FIRST RETURN TO
THE TOP OF THE INDEX SINCE 2021. THIS IS, OF COURSE, WE HAVE
SEEN SIGNIFICANT ISSUES WITH TESLA IN CHINA, FOR E
XAMPLE. ED:
ELON MUSK HAS LOST $33 BILLION OF WEALTH THIS YEAR.
BEZOS GAINED $23.4 BILLION. WHAT IS A FEW BILLION DOLLARS
AMONG FRIENDS? CAROLINE: ARE THEY FRIENDS? ED:
NO THEY'RE NOT, NO. [LAUGHTER] CAROLINE:
COMING UP, LET'S RETURN TO THE STATE OF CYBERSECURITY. CAROLINE:
WELCOME BACK TO "BLOOMBERG TECHNOLOGY."
I'M CAROLINE HYDE IN NEW YORK. ED: AND I'M ED LUDLOW IN SAN
FRANCISCO. LET'S GET BACK TO BITCOIN.
WE ARE NOW BELOW $66,000. EARLIER BITCOIN TOUCHED ITS
FIRST RECORD HIGH SINCE NOVEMBER
2020 ONE, JUST ABOVE
$69,000. SEE THAT ALL THE TIME IN
DIFFERENT ASSET CLASSES. HAD A LIGHT -- HIT A RECORD,
THERE IS ENTHUSIASM, AND HE QUICKLY FALLS AWAY.
YOU CAN SEE OVER A FIVE-DAY BASIS THE MOMENTUM WE HAVE SEEN
IN BITCOIN AND ITS MARKET CAP ALSO NOW GLOBALLY NEAR THAT IN
$.5 TRILLION MARK. THERE IS A LOT HAPPENING IN
EQUITY MARKETS. YOUR RIGHT TO POINT OUT THAT IT
IS JAY POWELL WEEK. WE WILL HEAR FROM HIM LATER IN
THE PROGRAM. IT IS TECH THAT IS DRAGGING
DOWN THE INDICES. APPLE'S OBSESSION
LOWS, BUT
DOWN 2.7%. THAT THIRD-PARTY COUNTERPOINT
RESEARCH DATA SHOWING WEAKNESS IN CHINA, CONTINUING TO UPDATE
YOU ON META. WE ARE GETTING REPORTS THAT
INSTAGRAM, THREADS, AND FACEBOOK ARE DOWN.
THE COMPANY HAS RESPONDED THROUGH A PHASE -- A
SPOKESPERSON TO SAY THEY ARE AWARE OF IT.
ALSO EARNINGS CONTINUE. OR AT THE TAIL AND, BUT CROWD
STRIKE REPORTS AFTERMARKET AND THAT BRINGS CYBERSECURITY BACK
INTO FOCUS. RIGHT NOW WE HAVE BEEN THINKING
ABOUT CYBERSECURITY IN THE CONTEXT OF SUPER TUESDAY,
THE
ELECTION CYCLE. EVERYONE IS DOING A LOT TO
COUNTER IT, BUT THE THREATS APPEAR TO BE GROWING.
LET'S BRING IN SOMEBODY WE ARE EXCITED TO SPEAK TO.
THE CEO OF CATO NETWORKS, SHLOMO KRAMER.
A.K.A., THE GODFATHER OF CYBERSECURITY.
SOME PEOPLE HAVE CALLED YOU THAT. I WANT TO START WITH THE
ELECTION AND SUPER TUESDAY. EARLIER IN THE PROGRAM WE
ATTRIBUTED A RAMP UP IN ACTIVITY OR RISK TO GENERATIVE
AI. DO YOU SEE THAT ACROSS YOUR DESK AT THE MOMENT? SHLOMO:
GENERATIVE AI IS THE NEXT PHASE IN CYBERSE
CURITY.
BOTH FROM AN INFLUENCING THE OPINIONS, AS WELL AS
INDUSTRIALIZING THE ATTACKS. SO, ABSOLUTELY.
YOU NEED AI FOR PROTECTION. ED: WE WELCOME YOU TO SAN
FRANCISCO. HOW MUCH OF THE CONVERSATION
YOU ARE HAVING WHILE YOU ARE IN TOWN IS ABOUT THE ELECTION?
DO YOUR CLIENTS HAVE OTHER CONCERNS? SHLOMO:
IT IS MOSTLY AROUND CYBERSECURITY IN GENERAL, AND
ELECTION IS THE BIG TRANSACTION THAT NEEDS TO BE PROTECTED.
BUT I WOULD SAY THAT IF YOU LOOK AT THE NEW ECONOMY, THE
NUMBER ONE RISK TO IT IS CYBERS
ECURITY. CAROLINE: AND YET POST THIS EARNINGS
SEASON, COMPANIES YOU WROTE THE FIRST CHECK INTO, PALO ALTO
NETWORKS OR OTHER CYBERSECURITY NAMES, THEY ARE DOWN BECAUSE
PEOPLE ARE NOT SPENDING AT THE PACE THE MARKET HAD ANTICIPATED
IN THEIR CYBER DEFENSES. DO YOU WORRY ABOUT THAT? SHLOMO:
ACTUALLY, WE IN CATO, MY COMPANY IS HERE TO SOLVE THIS.
THE SECURITY INDUSTRY FOR 30 YEARS HAS FOCUSED ON THE WHAT
AND CREATED A HUGE NUMBER OF PRODUCTS THAT ESSENTIALLY ARE
NOT CONSUMABLE BY MOST ENTERPRISES, SO
THE
CYBERSECURITY MARKET IS BROKEN, AND THE NEED TO FIX IT IS BY
FINDING NEW WAYS TO CONSUME IT. AND THE PLATFORM THAT CATO
PROVIDES IS THE NEW HOW THAT WILL FIX IT. CAROLINE:
LET'S TALK ABOUT THAT. SECURE ACCESS SERVICE EDGE.
IT SEEMS TO BE THE NEW WAY IN WHICH YOU THINK YOU SHOULD BE
DELIVERING CYBERSECURITY ACROSS A PLATFORM WORKLOAD, UNLIKE,
YOU SAY, THAT ONE OF YOUR BIGGEST COMPETITORS, WHICH IS
PALO ALTO. HOW MUCH IS THAT RESONATING?
HOW MUCH ARE YOU SEEING ENTERPRISES ADOPT, OR IS IT
GOV
ERNMENTS? WHO ARE YOUR END CONSUMERS AT
THE MOMENT? SHLOMO: I WOULD SAY THE PAIN OF POINT
SOLUTIONS IS EVERYWHERE, BUT AT LEAST TO LARGE ENTERPRISES, THE
GAP BETWEEN RESOURCES AND CHALLENGES IS THE MOST SEVERE. SO, THE NEED FOR SASE IS THE
MOST ACUTE, AND RECEIVED THE MOST TRACTION IN THIS TYPE OF
ORGANIZATION TODAY. BUT EVENTUALLY THE CONCEPT OF
PLATFORMS AND CONSUMPTION THROUGH PLATFORMS IS GOING TO
REPLACE THE ENTIRE CYBERSECURITY MARKET. ED:
LET'S TALK ABOUT THE MARKET AND ITS PLAYERS.
WE HA
VE A LITTLE DAVID AND GOLIATH STORY. YOU WROTE THE FIRST CHECK FOR
PALO ALTO NETWORKS. NOW YOU HAVE CATO. IT IS A SMALLER PLAYER IF WE
EXTRAPOLATE OUT, YOU'RE BASICALLY SAYING I DON'T THINK
THE BIG GUYS HAVE DONE VERY WELL, I'M GOING TO TRY AGAIN TO
DO SOMETHING A BIT DIFFERENT. SHLOMO:
YOU ARE ABSOLUTELY RIGHT. THERE WAS ALSO A
FIRST-GENERATION CHECKPOINT WHERE I WAS THE COFOUNDER. AND PALO ALTO CAME & FIRED
THROUGH CONVERGENCE AND PLATFORM A MARKET THAT WAS
SOFTWARE-BASED, BUT USING AN APPLIAN
CE. GUESS WHAT? DIGITAL TRANSFORMATION CAME AND
CREATED A VERY FLUID WAY OF DOING BUSINESS.
WORK FROM ANYWHERE. APPLICATIONS ARE ANYWHERE.
IT WAS A NEED FOR A NEW TYPE OF PLATFORM, AND THAT IS
ESSENTIALLY WHAT CATO PROVIDES. AND ALL OF THE APPLIANCE
WINDOWS, ALL OF THE SECOND-GENERATION VENDORS ARE
TRYING TO ADJUST AND ADAPT, BUT THEY BRING WITH THEM SO MUCH
BAGGAGE THAT IT IS VERY DIFFICULT FOR THEM. ED:
WE HAVE TALKED ABOUT WHERE, TECHNOLOGICALLY, THE THREATS
ARE COMING FROM. WHAT THE CONCERNS
OF YOUR
INJURY ARE. GEOGRAPHICALLY WHERE ARE THE
THREATS COMING FROM? WE ARE ZEROED IN ON A DOMESTIC
SITUATION, BUT AS WE LEARNED, CHINA, RUSSIA ARE ACTIVE IN
THIS SPACE. SHLOMO: ABSOLUTELY. WE ARE TALKING ABOUT TIMES OF
PEACE, WHEN YOU ARE SEEING THIS MASSIVE INTERNATIONAL
CROSS-BORDER ATTACK HAPPENS, AND ORGANIZATIONS, ESPECIALLY
OF THE MEDIA ENTERPRISES ARE SUFFERING.
IMAGINE WHAT WILL HAPPEN IN TIMES OF WAR?
YOU DON'T NEED TO IMAGINE MUCH. YOU GO TO UKRAINE IN 2017 AND
YOU WOULD SEE THAT GA
Y PERCENT OF THEIR ECONOMY WAS DOWN
BECAUSE OF THIS TYPE OF ATTACK. SO, REALLY FIXING THIS
MASS-MARKET PROBLEM OF CYBERSECURITY IS CRITICAL AS A
DEFENSE AGAINST THESE TIMES OF WAR. CAROLINE:
AND IT IS NOTABLE, OF COURSE, WHICH OUR HEARTS GO OUT TO THE
FACT THAT YOU ARE TRAVELING TO US FROM ISRAEL AT THE MOMENT.
I KNOW THAT IS SOMETHING THAT AFFECTS YOUR BUSINESSES AS WELL.
I'M INTERESTED IN YOUR BUSINESS IN PARTICULAR.
AT A TIME WHEN THE MARKET WAS HAVING REAL DIFFICULTIES, WE
WERE THINKING IN T
HE DOLDRUMS OF 2023, BC HAD PULLED BACK,
AND YOU WERE STILL ABLE TO RAISE FUNDS.
YOU ARE STILL PUTTING IN 238 MILLION DOLLARS IN SEPTEMBER
2023. LIGHTSPEED VENTURES THERE, ONCE
AGAIN. YOU HAVE TALKED ABOUT WANTING
TO GO PUBLIC. AT THE MOMENT ARE YOU THINKING
THAT WILL BE A 2024 ENDEAVOR? HOW ARE YOU ASSESSING THE
AMERICAN MARKETS, AS WELL AS THE AMERICAN CYBERSECURITY
MARKETS YOU SELL INTO? SHLOMO: CATO IS THE LEADER IN THIS NEXT
GENERATION SASE MARKET, AND BEING A PUBLIC COMPANY IS A
MILESTONE
WE WILL GET TO WHEN BOTH COMPANY AND MARKETS ARE
READY. BUT, ABSOLUTELY. THIS IS AN OPPORTUNITY TO BUILD A LARGE PUBLIC COMPANY THAT
WILL NEED THIS CATEGORY. CAROLINE:
SHLOMO KRAMER, WE APPRECIATE YOU COMING IN TO VISIT US.
CATO NETWORKS. WE WILL KEEP UP TO SPEED WITH
THE GROWTH OF THE BUSINESS. MEANWHILE, WE ARE GOING TO BE
DISCUSSING HOW ORGANIZATIONS CAN ENSURE ETHICAL USE OF
ARTIFICIAL INTELLIGENCE WITHIN THEIR WORKFORCE.
YOU WILL HAVE THE LATEST FROM THE LLOYD SURVEY ON AI ETHICS.
-- DELOIT
TE SURVEY ON AI ETHICS. ED: LOOKING AT SHARES OF GOOGLE.
THE DIGITAL MARKETS ACT KICKS INTO EFFECT THIS WEEK.
WE HAVE ZEROED IN ON APPLE BECAUSE OF THEIR NEED TO
COMPLY, THAT I WOULD ALSO BRING YOU AN UPDATE.
DOWN DETECTOR IS ALSO SAYING YOUTUBE IS EXPERIENCING OUTAGES
ALONGSIDE OUR REPORTING THAT MANY OF META'S PLATFORMS ARE
DOWN. THE STOCK DOWN 1.5%. WE'LL KEEP AN EYE ON ALL OF IT.
THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
LET'S GET BACK TO ARTIFICIAL INTELLIGENCE AND ITS IMPACT ON
THE FUTURE.
SAN FRANCISCO-BASED VENTURE
FUND HAS WRITTEN AN OPEN LETTER MAKING A PLEDGE TO BUILD AI
THAT IMPROVES LIVES AND UNLOCKS A BETTER FUTURE FOR HUMANITY.
IT IS YET ANOTHER OPEN LETTER THAT WE HAVE SEEN, AND THIS
TIME THIS ONE WAS SIGNED BY OPENAI, GOOGLE, META,
MICROSOFT, AND MANY OTHERS. THIS IS A WAY SOME MAY ARGUE
ABOUT HOW TO IMPLEMENT AI ETHICS.
WE ARE GOING TO GET INTO THE MORE SPECIFIC WAYS. ED:
THEY ARE NOT ALONE IN THAT. DELOITTE RELEASED A NEW STUDY
TODAY ABOUT JUST THAT. HOW ORGANIZATION
S CAN COMPARE
-- CAN PREPARE THEIR WORKFORCE FOR AN ETHICAL USE OF AI. JOINING US FOR MORE IS DEVOID
TECHNOLOGY'S ETHICS PRACTICE LEADER. ALSO THE AUTHOR OF "ZERO
LATENCY LEADERSHIP," A BOOK THAT TAKES A LOOK AT
LEADERSHIP IN THE AGE OF AI. BEENA AMMANATH JOINTS ME.
CLEARLY THERE IS A CONCERN ABOUT HOW EVEN A
TECHNOLOGICALLY-SAPPY WORKFORCE USES AI FROM AN ETHICAL
PERSPECTIVE. I KNOW HOW DELOITTE WORKS.
THERE MUST BE A REASON YOU FELT COMPELLED TO PUBLISH THAT STUDY.
BEENA: ABSOLUTELY. I AM A TE
CHNOLOGIST BY
TRAINING, AND WE HAVE SEEN THE RAPID EVOLUTION OF TECH
KNOWLEDGE HE. BUT TECHNOLOGY COMES WITH SIDE
EFFECTS. THERE ARE RISKS THAT COME
ALONGSIDE IT, AND THERE IS NOT AS MUCH ON ETHICAL RISKS, THE
TRUSTWORTHY RISKS THAT COME WITH TECHNOLOGY.
WE THOUGHT IT WAS IMPORTANT TO HIGHLIGHT IT, RAISE AWARENESS,
AND REALLY GET COMPANIES TO ADDRESS THE ETHICAL RISKS SO WE
CAN TRULY GET THE FULL POTENTIAL OF AI. CAROLINE:
I WOULD SAY THAT THE MEDIA, THE DISCOURSE, THE LATEST NEWS HAS
BEEN DOING
A LOT OF THE HEAVY LIFTING FOR YOU.
WE WERE JUST TALKING ABOUT THE LATEST OPEN LETTER.
THERE HAS BEEN HANDWRINGING ABOUT ETHICS, IMPLEMENTATION OF
AI. WE HAVE ALSO HEARD CONCERNS ABOUT THE LATEST IMAGE
GENERATION AND WHETHER OR NOT TRYING TO CORRECT FOR ONE
DIRECTION THEY ARE BIASING AND NOT GETTING
HISTORICALLY-ACCURATE IMAGES. I'M INTERESTED IN WHAT CEOS ARE
ASKING YOU THAT THEY CAN DO TO IMPLEMENT RIGHT NOW.
DO THEY SLAM ON THE BRAKES ABUSING CHATGPT OR GENERATIVE
AI? BEENA: ABSOLUTELY NOT.
THERE ARE RELATIVELY LOW-RISK
WAYS TO USE THE TECHNOLOGY, AND IT IS IMPORTANT TO IDENTIFY THE
RIGHT USE CASE. I THINK THIS IS A VERY POWERFUL
TECHNOLOGY. WE SEE A VARIETY OF USERS
ACROSS DIFFERENT PRODUCTS, DIFFERENT FUNCTIONS. IT WAS ABOUT FINDING THAT RIGHT
OPPORTUNITY OR YOU CAN GET THE MAXIMUM VALUE WHILE MINIMIZING
THE RISK. WHAT CEOS ARE LOOKING AT IS,
HOW DO YOU IMPLEMENT THE RIGHT ETHICAL POLICIES AND GUIDELINES
TO GET THAT MAXIMUM BENEFIT. -- BENEFIT? ED:
YOU WERE JUST SHOWING A CHART.
I COULD NOT BELIEVE WHAT I JUST
SAW IN THAT CHART. IF WE CAN LET'S BRING IT BACK.
84% OF RESPONDENTS SAID THEY CURRENTLY ARE USING AI.
WHAT FOR? THINK ABOUT ALL OF THE BUSINESSES THAT DELOITTE WORKS
WITH, BIG AND SMALL. WHAT DO YOU MEAN 84% HAVE BEEN
USING AI? BEENA: I DON'T THINK IT IS GENERATIVE
AI SPECIFICALLY, WHICH IS THE CURRENT FLAVOR SINCE THE LAST
18 MONTHS. IT IS AI FOR PREDICTIVE
ANALYTICS, FOR MAINTAINING YOUR JET ENGINE.
FOR -- FOR MY FINANCE PERSPECTIVE, FROM
AUTO-APPROVING EXPENSE
REPORTS, RIGHT?
THERE ARE A LOT OF BORING AI USE CASES THAT COMPANIES ARE
FOCUSING ON AND HAVE BEEN FOCUSING ON.
LOOK, I MYSELF HAVE BEEN APPLYING AI FOR OVER 12, 13
YEARS. GENERATIVE AI IS THE CURRENT
FLAVOR, BUT WHEN YOU SEE THAT NUMBER IT IS TALKING ABOUT HOW
COMPANIES HAVE BEEN USING AI FOR MUCH LONGER TIME. CAROLINE: AND NOW COMPANIES TRY TO GET IN
PLACE THE GUARDRAILS. DO YOU THINK WE NEED MORE
GOVERNMENT-ENFORCED GUARDRAILS? BEENA:
I THINK THERE IS ABSOLUTELY A NEED FOR AI REGULATION AND
POLICIES AND BEST PRACTICES. IF YOU TAKE A STEP BACK AND
LOOK AT IT, AI AS A TECHNOLOGY IS STILL MATURING.
AND THERE IS A BALANCED STREAM, WHICH IS THIS ETHICAL RISK.
COLLECT THE SIDE EFFECTS. ITS IMPACT TO THE WORKFORCE.
THEY IMPACT THROUGH THE ORGANIZATION ITSELF, RIGHT?
AND IN THE THIRD STREAM IT IS AI REGULATIONS AND POLICIES.
WILL EACH ONE OF THESE MOVE AT A DIFFERENT PACE?
BUT IT NEEDS TO HAPPEN, AND WE HAVE SEEN IT ACROSS DIFFERENT
INDUSTRIES HAPPENING OVER TIME. ED:
I THINK THERE IS AN
ACCEPTANCE THAT A LOT OF THE FOCUS IS
AUTOMATION, REMOVING THE ROLE OF A PERSON THAT MIGHT HAVE
BEEN MUNDANE. WHAT KIND OF PEOPLE DO FIRMS
NEED TO HIRE IF THEY ARE GOING TO THINK ABOUT AI? BEENA: OUR SURVEY SHOWS THAT COMPANIES
ARE ACTUALLY HIRING MORE AI ETHICS RESEARCHERS, COMPLIANCE
SPECIALISTS, TECH POLICY ANALYSTS. OVER 50% OF ORGANIZATIONS ARE
GOING FOR THAT GROUND-LEVEL ROLE, AND ABOUT 30% ARE GOING
FOR CHIEF TRUST OFFICERS OR CHIEFLY AI ETHICS OFFICERS.
THERE IS THAT NEED TO FOCUS ON AI
ETHICS RESEARCH AND BRING IT
TO AN ORGANIZATIONAL AND USE CASE LEVEL. CAROLINE:
WE THANK YOU FOR BRINGING YOUR EXPERTISE TODAY.
DELOITTE TECHNOLOGY'S BEENA AMMANATH.
MEANWHILE, WE WILL GET BACK TO IT, BITCOIN'S RALLY.
IS IT SUSTAINABLE? WE ARE GOING TO DIG INTO IT
WITH JALAK JOBANPUTRA. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
LET'S GET BACK TO BITCOIN. IT HIT A NEW RECORD HIGH, AND
ITS RECORD MARKET CAPITALIZATION HAD ALREADY BEEN
HIT. BECAUSE THERE IS MORE BITCOIN
IN CIRCULATION. NOW ALMOST C
OMING UP TO A $1.25
TRILLION MARKET CAPITALIZATION. LET'S GET TO MORE BROADLY HOW
THIS AFFECTS THE REST OF THE ECOSYSTEM AND INVESTING.
JALAK JOBANPUTRA IS WITH US, MANAGING PARTNER OF FUTURE
PERFECT VENTURES. YOU WERE IN CRYPTO BEFORE
CRYPTO WAS COOL. AND I'M INTERESTED ON WHETHER
WITH BITCOIN RAMPING UP HIGHER, PEOPLE WORRYING ABOUT LEVERAGE
COMING TO THE SYSTEM AGAIN, ARE WE BRACING OURSELVES FOR
COUNSEL -- FOR CONSOLIDATION? OR ARE WE ON THE MARCH FOR
SUSTAINABLE REASONS? JALAK: WE HAVE A CO
NFLUENCE OF FACTORS
THAT MAKE THIS RALLY DIFFERENT. FIRST WE HAD ETF LAUNCHES,
WHICH WERE OFF TO A BIT OF A SLOW START, BUT BLACKROCK'S HAS
BEEN THE MOST SUCCESSFUL IN HISTORY.
WE CONTINUE TO SEE INTEREST FROM INSTITUTIONS COMING INTO
THE SECTOR. BLACKROCK IS ALSO LAUNCHING A
BRAZIL ETF PRODUCT FOR SPOT BITCOIN.
YOU'RE GOING TO SEE NOT ONLY THE U.S., BUT THE REST OF THE
WORLD CONTINUE TO HAVE MORE ACCESS.
THAT SHOWS THAT YOUR IN A DIFFERENT SITUATION THAN WE
WERE IN PREVIOUS RALLIES AND CONSOLID
ATION.
WE ALSO HAVE BITCOIN HAPPENING AS SOME OF US CALL IT, WHICH
TRADITIONALLY CONSTRICTS THE SUPPLY OF BITCOIN, BECAUSE IT
REDUCES THE REWARDS THAT BITCOIN MINORS GET. THESE TWO FACTORS, ALONG WITH
MORE FAVORABLE REGULATORY MOVEMENTS AROUND THE WORLD
POINT TO US CONTINUING TO GO HIGHER.
THAT DOESN'T MEAN WE WILL NOT HAVE PULLBACKS ALONG THE WAY,
BUT THE MACROENVIRONMENT IS SUPPORTING HIGHER HIGHS.
CAROLINE: THE EXUBERANCE AROUND BITCOIN
HAS SPILLED INTO OTHER AREAS. ETHER IS ON THE UP, SOLANA
. THEN, LIKE 2021, THE MEME COINS
COME BACK. SOME OF THEM THINKING THERE
WILL BE SOME PRACTICAL USE CASE. WHAT ARE THE SPILLOVER EFFECTS?
ARE YOU WORRIED ABOUT TOO MUCH EXUBERANCE IN DICEY AREAS OF
THE MARKET? JALAK: THERE IS ALWAYS GOING TO BE
SPECULATIVE ACTIVITY WHEN WE SEE BITCOIN AND ETHEREUM AND
SOME OF THE BLUE CHIPS CONTINUE TO GO HIGHER.
PEOPLE ARE LOOKING FOR EVEN HIGHER RETURNS WITH SOME OF
THESE LOWER LIQUIDITY LONGTAIL PROTOCOLS, AND SOME OF THEM ARE
THESE MEME COINS. THAT IS TO BE
EXPECTED.
INVESTORS NEED TO REALIZE THEY ARE DEALING WITH MORE VOLATILE
ASSETS BUT WE HAVE SEEN SOME OUTSIZED RETURNS IN SOME OF
THOSE NAMES YOU MENTIONED. ED: THERE ARE MORE LONG-TERM
HOLDERS OF BITCOIN, AWAY FROM INFLOWS, OUTFLOWS OF ETF'S.
THE PRICE. WHAT DOES THAT TELL YOU, THE
DATA POINT. -- JALAK: THE DATA POINT? JALAK:IT
SHOWS THERE IS LONGEVITY OF THIS ASSET CLASS THAT WE HAVE
SEEN MORE AND MORE PEOPLE MOVING BITCOIN OFF OF
EXCHANGES, WHICH MEANS THEY ARE NOT GOING TO TRADE. THEY ARE STO
RING THEM IN HIGHLY
SECURE WAYS, WHICH MEANS THEY ARE LOOKING AT THIS AS AN ASSET
THAT COULD HEDGE AGAINST INFLATION. WE HAVE SEEN A LOT OF
BACK-AND-FORTH ON OUR INTEREST RATES GOING TO, BECAUSE ARE
THEY GOING TO HOLD STEADY? ARE THEY GOING TO INCREASE?
BITCOIN PROVIDES AN ASSET THAT IS INDEPENDENT OF THIS
GOVERNMENT POLICY AND MORE AND MORE PEOPLE WORLDWIDE WANT TO
HOLD THIS. ED: CAROLINE MENTIONED YOU WERE
INVESTING IN BLOCKCHAIN STARTUPS BEFORE IT WAS COOL.
HAS YOUR APPROACH CHANGED OVER THE
YEARS IN THE TYPES OF
COMPANIES YOU NOW WANT TO BACK? JALAK:
WHAT IS EXCITING NOW VERSUS 2013 WHEN I FIRST STARTED
INVESTING IN THE SECTOR, I MEAN, BITCOIN WAS REALLY THE
ONLY CRYPTO PUBLICLY TRADED CRYPTO YOU CAN INVEST IN, AND
THEN THERE WERE A NUMBER OF EXCHANGES WE INVESTED IN.
DATA ANALYTICS COMPANIES AROUND CRYPTO ACCESS.
THERE WAS A LOT OF INFRASTRUCTURE THERE.
NOW WE HAVE SEEN 10 YEARS OF BUILDOUT NOT ONLY IN BITCOIN,
BUT IN ETHEREUM AND ALL OF THESE LAYER TWOS.
I ALSO INVESTED IN THE EA
RLY INTERNET IN THE 90'S -- 1990'S.
BACK THEN WE COULD NOT WATCH VIDEOS ONLINE.
IN 2013I SAID, WE CANNOT EASILY ACCESS AND TRADE BITCOIN, AND
10 YEARS LATER WE HAVE ETF'S. SO, IT IS VERY SIMILAR
PROGRESSION. I WOULD SAY EVEN FASTER
PROGRESSION AS WE SEE THE BUILDOUT. SO, JUST LIKE, YOU KNOW, ANY
ASSETS NEED CUSTODY, NEED MARKET MAKERS, WE HAVE SEEN ALL
OF THAT. SO, THE OPPORTUNITY SET FOR
INVESTING IS EVEN WIDER THAN EVER BEFORE.
WE ARE INVESTING OUT OF OUR THIRD FUND.
IT WILL BE OUT TO MARKET W
ITH A FOURTH FUND SHORTLY, AND WE
NEED -- WE SEE MORE AND MORE INTEREST AND GROWTH. ED:
JALAK JOBANPUTRA, THANK YOU FOR CATCHING UP.
YOU TAKE YOUR WORD FOR IT, IN IT BEFORE IT WAS COOL.
GOOGLE HAS ISSUED A STATEMENT SAYING IT IS WORKING ON A
LOADING ISSUE FIXED FOR YOU TO DO IT CURIOUS TIMING THAT DOWN
DETECTOR SAYS YOUTUBE IS DOWN ALONG WITH THOSE OTHER
PLATFORMS. CAROLINE: ACROSS THE BOARD WE ARE SEEING
FACEBOOK BEING -- BEING IMPACTED. WE WILL HAVE TO SEE. 20 OF RATHER AMUSING MEMES
COMING OU
T OF ELON MUSK TODAY AS SOME OF THESE CHIEFS HAVE TO
GO TO X TO TELL US ABOUT THESE ISSUES.
THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY."
CAROLINE: ED: ED:
Comments
Its funny how all stocks have negative going on right now. Stock market just a game and timing
No one is burning tesla. They are doing it to themselves π and a day without caroline isn't a day at all. ππ