Transcripts For BLOOMBERG Bloomberg 20240704

Regulators spoke to allow his company to commercialize their attack in San Francisco. A government probe into malicious attacks on Cloud Computing including microsoft roles in a chinese hacking of government officials. We have the details in the aviation sector will pass a 5 trillion bill to fight decarbonization. San franciscans get ready, you are about to see even more robotech sees on the streets. California regulators voted in favor of waymo and cruz pay Driverless Services. The ruling came after hours of public testimony with citizens arguing for and against the services. They can run full Driverless Services charging fairs day and night here in San Francisco. The ceo joyce me now. Ed how do you operationalize this . It is got in your favor. What happens next . Its been a big year of scaling for us. We ramped up our operations as we see these performances improve on the road. With this permit we can convert that service to a preservice. A signal to california that we will priorities progress. Ed i tweeted and asked a fair question i got in response, why did the dude just San Francisco. Why not sacramento, los angeles . Kyle we went to the cpc for the small region of San Francisco, a limited number of cars. This is the second time weve gone for a permanent and its an expansion of the permit and we will do the same later this year. Why is this a place to test the technology but commercialize the business. We are based here in bc San Francisco its a litmus test for commercialization of robotech sees. If they work in San Francisco with high population density, fog, hills, construction then they can work in many other cities across the u. S. And from a business standpoint, these are the early days of the technology. The first version is always more expensive and we want to start in cities with a high ability to pay. Ed what about the money in your pocket . The waitlist will be in the tens of thousands. Youre able to charge a fair. You onboard the waitlist. Does that bring in revenue for you guys . It gets to the history of your company. Im interesting interested in charging a fair and how recent it is . Kyle we have hundreds of vehicles both from a year ago, we will move into the thousands. The rate of expansion has been impressive and this is not because we are going wild its because the system itself is improving so quickly. Thats part of the remarkable thing. They keep Getting Better over time and exponentially. A couple of weeks ago, the Earnings Call said 10,000 and last week it was 15,000. Demand is off the charts and it will lead to continued expansion. Ed last night we aired an episode of the circuit as she talked to gary 10. You are why combo natures of 2014. 19 years nine years take you to get here. It that foster frustratingly slow . Kyle building a car that can operate in a better way than a human driver is a challenge and there are no shortcuts. The first eight years of this journey was a grind. Continuous improvement, improving the software where we saw evidence of us would have a positive impact on road safety. Unlike other products where you lodged out there. That technology had to be matured and made robust before he put it on the roads. It has been a 10 year journey but were happy to put it up there. Ed we will look at pictures of retrofitted, customized chevy volts. A question i constantly get is why no new york city and no china because there are chinese players that test in the bay area and to chinese cities. Can you answer those two please . Ed from new york and other cities is not if but when. This technology, the way we deployed it is we make it work in an defined environment. In San Francisco you have fog but you dont have ice or snow. That will come in the next couple of years and when we fi capability we could take it into the cold weather cities. That is not slowing our attention. A year ago we were in one city and today weve about 7, 8 that will begin imminently. He will see that route expansion in the sun belt. Ed lets talk about the future for technology. These are retrofitted or customized chevy volts. We are showing it right now. A purpose built, Steering Wheel less. Kyle we are experimenting but the exciting thing about this vehicle its the first time a car has been built from the ground up for this road taxi purpose. Of ocelot longer, designed for pool rides. The cost of it will be substantially lower. Cars feel like its a car without a driver. The origin feels like what a driver this vehicle was meant to be in the experience weve been fantasizing for years. Ed can you explain in simple terms when production starts and you will deploy to the real world . The origin against existing infrastructure . Kyle this car has no Steering Wheel. In multiple cities, as it goes in production we will multiply those vehicles in a gradual way across 7, 8 cities and ramp up in each city as we were about production. Ed there is a fierce battle for talent and artificial intelligence. Machine learning, networks is a big part of what you do as well. What are your Biggest Challenges right now from a cash perspective that you have left to tackle in 2023 . Kyle were fortunate to have robust support from general motors. When we talk to candidates we talk to ai talent and like to see the strong backing. There are a lot of ai opportunities that are fun and interesting problems but they feel like toys. When you work on a selfdriving card that impacts road safety is the best way and engineer can spend their time. Ed a pretty big moment for Driverless Technology here in San Francisco. Lets give it a check in on the markets for technology. Nasdaq is tech heavy and weve talked about inflation, the fed. We are down 0. 7 . I will talk more about the index level, the second consecutive week for decline intact. Underperformance, semi conducting is off by two percentage points, nvidia dragged their. One of the popular names because of ai. The 10 year yield is pushing higher at 4. 14. Bitcoin at 29,370. Coming up here on bloomberg technology, a Cybersecurity Panel is investigating a number of Cloud Computing Companies Including microsoft, shares her soft dirt. 0. 72 . We will bring you that next. A u. S. Cybersecurity Advisory Panel will investigate militia targeting of Cloud Computing environments including microsofts role in a recent breach at a government officials email account by suspected chinese factors. That according to the department of heart homeland security. Lets bring in our cybersecurity editor, Andrew Martin. Help me understand the basics what is being looked at . Andrew the Biden Administration created this cyber Safety Review Panel to look at major cybersecurity events to figure out ways to prevent it from happening in the future but what they did here was followed a hack in july that included a bunch of u. S. Government email accounts including Gina Raimondo they look broadly at malicious attacks on Cloud Security and the hack by suspicious chinese hackers that got access to these email codes. Ed lets go to microsoft. What have we learned about what investigators are looking at microsoft role in all the is. Andrew in this attack the suspected chinese hacker got what is known as an encryption key that allowed them to generate authentication tokens which allow them to act as the legitimate use in the systems and get access to emails and senator ron white wrote a letter last month asking for u. S. Officials to investigate microsofts role in this. He accused them from for negligent cybersecurity practices and that their products were involved in the solar wind attack so he has broadly asked for an investigation of microsoft. The panel is looking at microsoft but all cloud providers. Ed its important what we hear from the agencies. Alejandro mayorkas said organizations are increasingly reliant on Cloud Computing which makes it imperative we understand the vulnerabilities of the technology. Do we have a sentence that they understand the vulnerability now . Andrew thats what were trying to figure out. The cloud has grown very rapidly in the past couple of years. There has been a few that if exploited vulnerabilities in the cloud. Ed the thing this interesting here is who in d. C. Looks at these things thinks when you think about the department improving additional issue rather than National Security issue who has jurisdiction here . Ed yes. There is an agency called cybersecurity and Infrastructure Security Agency which oversees the defense of u. S. Computer networks. They provide protection against attacks and intelligence to help those who work in the agencies to protect against attacks. Cyber safety review board is overseen by them. They are advisory in nature and the purpose of them is not so much to prevent an attack but to go back and say heres what would wrong in this case and what can we do better next time . The previous look for a software vulnerability, open source software. Another malware attack was investigated. Ed i things to Andrew Martin in that story confirming the previous bloomberg report. Coming up on bloomberg technology, the cost of flying. Why they are charging passengers for more in order to reduce carbon emissions. It is a big number, big. This is bloomberg technology. Cted outof costs. Which for those on medicare, or soon to be, is a good reason to take charge of your health care. 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So if you have this and want less outofpocket costs. And more peace of mind. Consider adding this. An aarp Medicare Supplement plan. Take charge of your health care today. Just use this. Or this to call unitedhealthcare he had been a career prosecutor serving for more than a decade. Beginning in 2019, mr. Weiss as District Attorney began investigating allegations of certain criminal contact Robert Hunter biden, that investigation has been recently referenced a criminal proceedings in delaware and as noted in those proceedings and other public statements by mr. Weiss, that investigation remains ongoing. In february 2021, u. S. Attorney weiss was asked to remain District Attorney in delaware and to continue to lead the investigation. As i said before, mr. Weiss would be permitted to continue his investigation, take investigated steps he wanted to make the decision whether to prosecute in any district. He has told congress that he has been granted ultimate authority over this matter including the responsibility for deciding where, when and whether to file charges and for making decisions necessary to preserve the integrity of any prosecution consistent with federal law, principal of federal prosecutor and federal policy. In the letter mr. Weiss said he had not to the point required special counsel designation. On tuesday of this week, he advised me that in his judgment, his investigation had reached a stage at which she should continue his work as a special counsel and he asked to be so appointed. Upon considering his request as well as the extraordinary circumstances relating to this matter ive concluded its of the Public Interest to appoint him a special counsel. This appointment confirms my commitment to provide mr. Weiss all the resources he requests and reaffirm sub mr. Weiss has the authority he needs to conduct a thorough investigation and to continue to take the steps he deems appropriate independently based only on the facts and the law. Mr. Weiss will continue to serve as u. S. Attorney for the district of delaware. A special counsel he will have the authority and responsibility that has previously been exercised to overseehe investigation to decide where, when, whether to file charges. The special counsel will not be subject to daytoday supervision of any official but he must comply with regulations, procedures and policies of the department. Consistent with the special counsel regulation in the conclusion of mr. Weisss work he will reply me with the report explaining the prosecution or declination decisions reached by him. As with each special counsel i am committed to making his report as public as possible consistent with legal requirements in public policy. Todays announcement affords the prosecutors, agents, in a on this matter the ability to proceed with their work expeditiously and make decisions indisputably guided only by the facts of the law. The men and women undertaking this investigation are Public Servants who have dedicated their careers to protecting the citizens of this country. The appointment of mr. Weiss reinforces for the American People the departments commitment to both independence and accountability in particular the sensitive matters. I am confident he will carry out his responsibility in an evenhanded and urgent manner and in accordance with the highest traditions of this department. Thank you. Does he have the authorities he needed then why . Ed that was merrick garland, the Hunter Biden Probe has been assigned to special counsel by the department of justice. That special counsel, david weiss will be the special counsel on the Hunter Biden Probe. As we just heard from the attorney general, david weiss in delaware, since 2019 has been looking into criminal investigations against hunter biden. President joe biden son. He has been granted special Counsel Authority and under which, he will have full independence. He will not be overseen by the department of justice as he continues this investigation. It is important to note that earlier this summer, mr. Weiss was involved in the plea agreement with hunter biden where he was supposed to plead guilty to tax charges that could have avoided prosecution on a gun related charge. The plea deal fell apart in court. Thus not completely resolved and Going Forward he will have a special counsel designated. Its important to keep in mind that a special counsel is something republicans been calling for for some time and in congress, there are separate, ongoing investigations into hunter biden but have the president may have been involved. There was a hearing with devon archer, a former Business Partner talking about phone call so that the president may have been on with hunter simultaneously with the president. They have given that special prosecutor designation. Ed david weiss has been made a special counsel. Coming up, new research it can be easy to generate racist images using ai. That is coming up from San Francisco, bloomberg technology. With personalized insights from 23andme. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh people are always asking me avalarahhh two words come to mind for me. One is responsibility, the other is purpose. Its just so inspiring to do research that impacts human lives. Stand up to cancer has been a critical partner in advancing research for cancer. Cancer Research Saves lives. So please help us fight in this battle against cancer. Its an amazing thing when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. We have been able to reach over 100 Million People impacted and affected, and at risk of hiv. The rocket fund takes all of the work that were doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. The idea that we have saved five Million Peoples lives, its overwhelming. Its everything. Ed welcome back to bloomberg technology. Ed ludlow in San Francisco. Caroline hyde is off. The nasdaq 100 over five days, down again 1. 57 . Its second consecutive weekly decline. It is easy to forget this is the first back to back decline we have had on the tech heavy index since december. Earnings season has been a big part of the story. The cpi print is a factor. Mark is trying to understand what the fed might do next. Higher it higher rates impact future cash flows. Back weekly declines on the nasdaq 100. Backtoback weekly declines on the nasdaq 100. One name we are looking at in particular is alphabet, parent of google. It is lower for the friday session but on a weekly basis, it has faired better. What i want to talk about next is alphabets big pile of cash. They generated nearly 10 billion after cutting jobs. But the google parent has around 118 billion in cash in shortterm securities, where than any under more than any other company except apple. But alphabet does not have a welldefined strategy so investors are seeking more details. We blast and try to get those answers. From big tech to little tech. Google is going big on ai, as is microsoft and other big names. Take mid journey. It is an independent research lab that has been here meant to ai and can generate images using ai. It is the subject of todays bloomberg tech daily newsletter. You and i look at ai Companies Developing generative ai and interact with their apps and technology. Why have you been writing about this particular name in the newsletter . It is great to be here. I think been churning, which has been floating around, the name. If you recall the viral image of the pope in a puffer jacket, it was painted by mid journey. It is one of the bigger ai generating apps. If you think of the three biggest ones, it would be mid journey, openais dali instability ais stable and stability ais stable diffusion. According to research, this is the most popular ai generated avenue out there it is concerning it and be can be easily tracked. Ed ok, midjourney, dali, and stable diffusion. Is it fair to say midjourney has the most flexible standards of those three . Davey according to this report, it seems to be the case. Researchers from the center for countering digital eight showed an early report with us exclusively. They found 100 examples where midjourneys bot was easily tricked into creating conspiratorial images. They showed profs where people were ordering up images of paul prompts where people were ordering up images of politicians in copper sizing compromising positions. There are some guardrails. Midjourney will not generate an image if you have certain keywords like blood or anything referring to gore or violence. But it is so easy to track it. What example we talk about in the newsletter as you can ask it to generate an example of villain Hillary Clinton with her hands covered in strawberry syrup. That makes it look like she has literal blood on her hands. Researchers are worried for the 2024 alexion. Ed we have covered the text to image issue, biases, or a result thats not what you intended. Lets be fair and say, what this meant journey have to say about this . What is the response to the reporting on their standards . Davey they did not send a response on the record. It has said in the past that it has dozens of moderators and guides that look at the content on their discord chat app. That is the main interface majority uses. They say these 68 content moderators scour the chat and make sure all their quests are aboveboard. But it seems like they are led to some requests go straight through. Beyond that, there is automatic, algorithmic ai that checks on the requests using text matching to make sure certain terms, like again about violence and gore, are not creating images but they are easily circumvented. Ed davey alba with the bloomberg tech daily. I encourage you to go out and read it. Coming up, the state of Ai Development in adoption particularly in enterprise. That is where the Insight Partners managing director lonne jaffe comes in. This is bloomberg with your hearing, if you start having a little trouble, youre concerned that its going to cost you money. To this day i only paid what i had to pay for the device. When i go back everything is covered. Theres so much youre missing by not having hearing aids. Well find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. Call miracle ear at 1800miracle and schedule your free, no obligation hearing evaluation today. Ed time for todays vc spotlight. Lets talk about cybersecurity and ai. Insight partners recently released its state of the Enterprise Report to break down the future of franchise adoption and tailwinds. The managing director lonne jaffe joins us now. So much of our audience either works for or is a customer of enterprise cloud. They are thinking heavily about how these developments happening right now in ai impact their core business. Just give me the Key Takeaways from the report you published very recently. Lonne the Insight Partnerss state of enterprise tech report. This is a study that reached out to 300 senior technologists at some of the Worlds Largest companies. 70 of them generate more than 10 billion in annual revenue. A lot of reports around Spending Plans and areas around cybersecurity and generative ai. Cybersecurity was a big focus. Wonder where concern for Bigger Companies and governments is around the possibility one concern for their companies and governments is around the possibility of seeing an increase of ransomware attacks. The government launched an ai severed challenge working with Companies Like anthropic, google, microsoft and openai which will have teams to contribute software abilities using ai. Ed i did not mean to jump in. But on this show, when we talk in a cybersecurity context, so many people say tools we have and you guys have, you threat actors have them as well. Why publish this report . What do you guys get out of it . Lonne we had a program called antionsite and it generally tries to help our Portfolio Companies with an enormous amount of resources. It helps with products, strategy, marketing and sales. There is part of a team that manages relationships with buyers. This is a great way to stay in contact with them. It helps our companies scale and potential companies and buyers. This week, it was announced checkpoint acquired company one which allows us to build a Corporate Network over the internet for around 490 million. This week, rubric announced it signed an agreement to acquire a company for cybersecurity and data. These are deep tech cybersecurity startups. When the companies are small and growing rapidly, that connectedness with the buyers can grow rapidly can be important. Ed and you have offices in tel aviv. One of the big stories has been vcs attitude toward the country given the societal and political things happening. How do you view as really tech view israeli tech . Cybersecurity has been what if the main offerings out of israel. Lonne we are based in new york city and there is a close connectedness between the new york city tech scene and the one in tel aviv. There are a lot of companies, when they land in the you asked, they will pick new york city after landing place. There were a few other companies that prove you can scale a massive Infrastructure Software company in manhattan. That is a big early part of our interest. We are actually very helpful to the inversely companies to the Israeli Companies because they need to start scaling up internationally right away. We have a lot of expertise around global sellout and hiring leaders. Things like that. Ed lets go back to you. You had a decade at ibm and now are in the vc role. How do you find the next ibm in this environment, such a heavy focus on ai. What are you seeing . Lonne we are still only a few months into it but there seems to be some early important differences starting to show up when compared to the prior generations of ai. The ai prediction systems like the recommendations or classification systems and things Like Health Care like our Portfolio Company Generative Health which can use videos to find cancer polyps from a colonoscopy video. This took time. We needed big teams, conference you are seeing this with incumbent Software Vendors but customers have been able to build answer to generative ai products extremely quickly. Some have released things already this year even though it is only been a few months. And they are able to give these woods models or generative ai capabilities access to hundreds of these models or generative ai capabilities access to hundreds of data. We have portfolio sets going through really rapid growth and helping the figure out, you can build generative ai capability and line it up to all your users and it can use your product. In a way, it is a startup because it is a new capability. Ive taken to interactive q a with all your enterprise data. You can ask a question like, which of my sales reps is most productive . Our companies are able to get these impressive generative ai capabilities out the door in just a. It tells the balance of power from startups to incumbents but there are a few interesting start categories we have been looking at. One, as kevin scott puts it, is a company can do the previously impossible thing that is possible but still hard. But you still have tight and talent. Like a company unlearn that use ai to create synthetic virtual trends virtual twins. It allows researchers to conduct trials well needing significantly fewer real patients to get the same quality outcomes. It is still really hard but now possible. There may not be an incumbent. Those things can lend very well to startups. Ed Insight Partnerss managing director lonne jaffe. Good to catch up with the on vc spotlight. Its head back to space lets head back to space. Thats was russia launching its first lunar lander to the moon in nearly 50 years this friday scarlet this friday. This rock is blasted off from russias far east in the early hours of moscow times. It reached orbit. The spacecraft will continue its journey for a few days to reach weiner orbit, getting safely to the moon would provide a muchneeded boost for russias Space State Corporation which has struggled in recent years. Coming up a bloomberg technology, the third richest person in the world is adding a new property to the tune of 68 million. Plus, think airbnb but for cars. We will talk to the ceo of turo about the app that lets you rent a car when youre on the go. This is bloomberg. jennifer the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. When i tell people how easy it was for me to lose weight on golo, they dont believe me. They dont believe i can eat real food and lose this much weight. The release supplement makes losing weight easy. Release sets you up for successful weight loss because it supports your blood sugar levels between meals so you arent hungry or fatigued. After i started taking release, the weight just started falling off. Since starting golo and taking release, ive gone from a size 12 to a 4. Before golo, i was hungry all the time and constantly thinking about food. After taking release, that stopped. With release, i didnt feel that hunger that comes with dieting. Which made the golo plan really easy to stick to. Since starting golo and release, i have dropped seven pant sizes and ive kept it off. Golo is real, our customers are real, and our Success Stories are real. Why not give it a try . Ed time for going viral. Have you seen this . Jeff bezos and his new waterfront mansion in florida. He agreed to pay around 68 million for a three bedroom estate dubbed the looking there bunker of florida. It is on a manmade Barrier Island in the larger miami area. I know a lot of people that moved to miami and are not spending 68 million in their house. In other news, the richest person in the world, elon musk says he spent three hours in an mri machine ahead of a proposed cage match with mark zuckerberg. The problem shows there is a shoulder blade rubbing against his ribs which requires minor surgery. The recovery will take a few months. We have no idea whether the proposed cage match will go ahead. Turo is taking on traditional car Services Like avis, budget and hertz to allow people to list their vehicles. We have the ceo andre haddad. It has been a while since we caught up on bloomberg technology. I want to ask about the macro story. We have seen with airbnb, certain behaviors with shortterm rentals when it comes to houses. What do you see with behavior of people listing vehicles on turo . Is it because they are under Financial Stress or otherwise . Andre the picture of the community of turo host has been positive the last couple years. Car prices have gone of and Interest Rates have gone up. More people are looking for ways to make their karmic sense financially. We have seen tremendous growth in our hosting community. We have seen people Start Building businesses on top of our app. We have seen multicar hosts really take community as we are excited to be able to have both consumer hosts and multicar hosts. Entrepreneurs are building small fleets on our app. Ed the story on the year has been artificial intelligence, either generative ai or using a large language model. What is turo up to . Andre we have jumped into it. We launched our plugin for chatgpt and we are excited about the initial reaction we are seeing. Ed how does it work . Andre you add the plugin to chatgpt and download it. Then you have the turo plugin on it and can start navigating turo in fun ways. You can start asking to get really wonderful cars in a particular location. You can describe the kind of cars you like, the kind of budget, the specs, and chatgpt will provide you with the incredible selection. Ed so it at its core is basically automation search but at next level . Andre yes. Instead of having the customer at all the criteria and filter through all kinds of things that you can imagine when you are trying to find the perfect car for your trip, you can ask chatgpt to do this or you. And we can deliver a great combination. Ed what is the result . Has it increased volume to the aft or are there easier matches . Andre it is easier matching. We are seeing an increase in matching rates and growth in traffic because many more people are discovering turo through chatgpt. Ed where are you going right now, either in the u. S. Or internationally . Andre in all of our locations, we expanded in france and australia. The u. S. Business continues to grow rapidly. We are excited to continue to expand rapidly. We are seeing turo have a chance to be everywhere around the world. Ed andre haddad, good to catch up. That does it for this edition of bloomberg technology. What a week it has been for earnings, markets, and ai and billionaires. There is a lot more to come. You can always recap everything from the show on our podcast. We are on apple, spotify, iheart and all the bloomberg platforms. From San Francisco. Caroline hyde is coming back soon, i promise. This is bloomberg technology. This allnew ariya is an elegant ev. Yeah, with 389 horsepower. And allwheel drive. Its beautiful. Its a beast. Its electric. With an edge. 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