Transcripts For BLOOMBERG Bloomberg 20240704

Ai. That conversation later. We will push ahead to the earnings out after the bell. Broadcom the latest company to test if this ai rally is a reality. The eus Digital Markets act takes hold today. We will break down the epic battles already raging for apple. Lets check out this market rally we are seeing and ai drives it. We see the mood music trying to decipher the rate of travel for the fed. The nasdaq currently powering on higher. Big test gets the lift. The euro actually higher versus the dollar. The dollar moving as we anticipate rate cuts. Dovish tones seemingly being interpreted from jay powell as we see Christine Lagarde hint to future cuts. The dollar is weaker against most fx payers today. And looking at whats happening in terms of the japanese rally versus the dollar, we have seen the yen up amid signals the boj might move to increase rates, up. 8 versus the dollar. A look at whats happening in the world of a brisk asset of choice on this show, bitcoin a risk asset of choice on this show, bitcoin. It is pushing to the upside. Lets dive into some of the individual names. Up 3. 4 on the benchmark that measures these chipmakers, and a record high for the Philadelphia Semiconductor index. Palantir is where we go towards the second half of the show. Of 3 as they have their ai day. Lower for apple as we try to decipher digest whats happening with e. U. The Digital Markets act is coming into force today hitting firms with a list of dos and donts. The aim to create a more competitive online field imposing changes on these six socalled gatekeepers. Apple, amazon, google, meta, microsoft, bytedance. Regulators are wanting to know about accusations that its barring epic games from opening its own app store for iphone customers in europe. That is what these new rules are meant to be allowing. Mark gurman has more and the battle still rages on. Give us the inside track of why we are seeing apple not allow this thirdparty app store to come to light . Mark caroline, apple has a lot on its plate. The Digital Markets act is coming into place. Theres a lawsuit coming from the u. S. Department of justice before the end of the month so they are already dealing with a lot. This latest bit is unnecessary. Apples app store chief and others at apple perhaps were upset about tim sweeneys tweets and response to the dma rollout, apples way of complying with the new eu regulations. Sweeney tweeted apples response and new policies are hot garbage. He called it malicious compliance and had other choice words or, as phil shiller called it, colorful language. They decided to yank the account in sweden that would allow epic games to roll out its thirdparty app marketplace in the countries that make up the eu. They pulled the developer account and now the eu is asking questions on the launch day for these new rules. Not great and this has the potential for the eu to fine apple. They probably dont have a great argument for why they did this in the mind of the eu. Pulling the account because they did not like the response on twitter is not a good look for apple. Its childish on one hand. On the other hand, theres the perspective that apple things they will break the rules again, so not a great development. Caroline and we have been hearing spotify also taking issue with some of apples ways of working around the dma and feeling they will still be charged an untoward amount of money ultimately if you get one get more than one million downloads. Apple faces many issues and to keep eat of report and the key piece of reporting you brought us last week was this after they have attracted on, building the apple display have retracted on, building the car. Walk us through you take today. Mark i think investors are realizing what is coming next. Investors all want to bind to what the future to buy into what they think the future of the company is. They had ambitions to build what amounted to a private jet or living room on wheels. You had club style seating, recliners, foot rests, gigantic tds and stateoftheart audio systems, the ability to watch tv and facetime and game in your car while it is driving itself. It looks like a canoe with like a canoe ev. Some stateoftheart autonomy systems. It looked nothing like you have ever seen on the road before. But there were major problems from an decision on what to do, what level of it, to go for from the top of the company of autonomy to go for from the top of the company, questions about when it would be ready. There were manufacturing concerns, competitive issues, and, of course, the nature of the competitive car business and the profitability of what a car would bring and the challenges in that business but i will say i spoke to someone involved in the project yesterday and they pushed back on the idea of there being profitability concerns, which there were, but this person disagreed, saying you know what business is harder than the automotive business . The Consumer Electronics business and apple is doing fine there. Caroline well said. Mark gurman. Great reporting. Thank you. Lets go to where the optimism in the market has been, chipmakers. Broad caught them earnings after the bell today broadcom earnings after the bell today. Investors are waiting with bated breath. We are anticipating big numbers. Yes. Investors are looking at these earnings as the next gut check for the chipmaking stocks, the hardware and picks and shovels if you would call them that of the ai rally so what wall street is expecting is for broadcom to report 11. 8 billion dollars in revenue for the quarter, a 30 jump yearoveryear. Most of that is from ai and what they are also looking for is the total chip sales, which was 15 , will go to 25 for the year. They will be looking for an update on their progress. Are we moving toward that when 5 number . The stock is looking good. We are up 3 today, 25 yeartodate, and 50 from its last earnings release. Broadcom is a little bit of an unsung ai hero because its the 10th biggest stock in the s p 500 now. It is not get the same shine as the star of the show, nvidia, but its in a similar realm. One thing investors are also looking at here is that unlike nvidia or amd, broadcom is less of an ai pure play. There are other pieces of the puzzle here. Some people say that could be beneficial if ai is indeed a bubble. There might be some insulation for broadcom investors. But on the flipside, could hold back some of the growth some of the ai names are seen. So theres a lot that investors will be looking at here. If the last release was any indication of whats coming on the call and future guidance from the ceo will be important. Last quarter, we saw shares dip a little and go back up when the ceo said ai will be a bright spot for them going forward. Caroline carmen reinicke, we are pleased to say you will be all over this story when the numbers come out after the bell. Coming up, the state of Artificial Intelligence, not just for chip stocks, but how diversity is necessary when building these large lingwood models, thinking about Large Language Models, thinking about policies for responsible ai. Lets get back to the chipmakers. Nvidia powering us higher. Chip stocks at a record high but nvidia notably has had some Key Executives and the stock of late, 180 million worth, in fact, unloaded by a couple longterm board executives in the last few days. That follows on significant sales happening in february as well. This is bloomberg technology. [announcer] if youre thinking about earning your degree online, snhu can help you get there. I felt supported throughout the whole process, even from the first call. [graduate] my advisors consistently reached out and guided me along the way. It was like i was talking to a friend, like someone that i had known for years. The instructors were very helpful with everything that i was going through. [announcer] well be with you from day one to graduation to your dream job. It all starts the moment you find your program. [announcer] go to snhu. Edu to get started. Ai will create tremendous wealth and value for shareholders, stakeholders, employees, for the people and businesses that utilize ai and we cannot leave behind women and minorities in this Value Creation moment. Caroline salesforce executive clara shih on how diverse workforces are key to building Artificial Intelligence models and creating policies for responsible ai. The founder and ceo of credo ai joining us. The company colts Companies Company helps companies determine whether there ai is reliable and responsible. Governance has an interesting connotation in the world of ai. Many see it as a deterrent to innovation but that is not the right way to think of it. Organizations that embeds in bed and start doing Ai Governance early show up as winners. What is interesting is the headlines keep coming. I have a colleague writing that theres been a whistleblower at microsoft coming forward saying there are concerns with image generation, with dali, that theres not enough governance and guardrails in place for safe image generation, and we know whats happened with gemini, wear to correct one bias, they ended up bringing us completely ahistorical images. How could have governance fixed this ahead of time before release . Navrina generative ai and ai by itself is a complex technology. One of the things i think most people dont understand is its not just a technical problem. Its a social, technical set of problems being introduced. What that means is how could geminis problems be solved or what we are seeing with microsoft . What are we providing applications for and how users are getting impacted is critical. Thats whats critical for organizations to understand. Making sure the right diverse set of eyes have been on the system to make sure they are meeting the end goal is critical. Caroline talk me through it as if i was a customer. What do you do . How do i put this governance in place . Navrina absolutely. The key thing is there are three core pillars of Ai Governance. First is alignment. What does good look like for your organization varies organization by organization. That is why alignment on what are you going to measure, how often are you going to measure, how you report it, that alignment is critical. Our Software Helps you with alignment as a service as step one. Once you have aligned, the second step is critical, what are you testing . As i mentioned, given the social, technical nature of Artificial Intelligence, you have to test everything from your technical systems to how your organization is set up to provide that insight and accountability . The last thing is how do you make the outcomes understandable by diverse stakeholders . Not everybody is an ai expert so how do you create the risk dashboard the audit reports so all stakeholders can understand the risks within your system but more importantly what mitigations are you going to put in place and account ability structures are you going to put in place accountability structures are you going to put in place to make sure it works for all . Caroline they highlight many regulators feel innovation was put before safety or level playing fields. When you are saying innovation is being seen as the offset to guardrails, do you think more regulation is needed to ensure the companies are using credo ai, or bringing in their guardrails at the same time . Navrina more intentional regulation is needed. More guardrails and Enforcement Mechanisms are needed. Think about 2024. 2 billion people across 50 countries will be in an election and voting. The majority of that will be powered by Artificial Intelligence. Caroline how is that majority going to be powered by Artificial Intelligence . Navrina because they will get access to information. They will get access to media and ads built around Artificial Intelligence and we see examples of deepfakes already showing up. The key question we should be asking is not only what the policies are in place but how are we going to enforce it so that a normal voter, a citizen who is actually going and showing up to vote, actually has the right information before they make that important decision for democracy. Caroline weve already had an executive order when it comes to ai. You advised the white house on ai and im sure policymaking. His government doing enough . Are we seeing Congress Move swiftly enough . Navrina i would say this is the first time in the past couple decades we have seen Government Action trying to keep pace with technology, but we are in a very different era of Technology Innovation where its moving so fast. This is where adaptive policymaking becomes critical and the executive order is a fantastic example. There were key goalpost put in place, including omb guidance, how does the federal government procure thirdparty commercially i, what are the safety standards, nists role, but i think theres more work that needs to happen. For example, Congress Just passed the budget and funding was cut by 12 . What does that signal . If ai safety and benchmarking is critical, we need dollars and those initiatives, and thats not happening. Caroline i imagine you are a global company. What are other countries doing . Navrina you mentioned europe. The eu ai act goes into effect this month and thats a step forward for a country that is putting european Citizens Rights first through this approach. The question will be how will that be enforced over the next 16 months where each and every organization will have to play by the eu rules . So the eu act will have the brussels effect we saw with gdpr but at a magnitude we cannot imagine and this is a time when organizations need to start getting ready for it. Caroline who would have thought it . Navrina singh, thank you for lending your expertise, ceo and founder of credo ai. Coming up, investing more than 1 billion in south korea. We will discuss why thats also an ai story. This is this is bloomberg technology. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Starting a business is never easy, but starting it eight months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our Business Needs the chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card. Make more of whats yours. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh caroline time for talking tech. Sk hynix ramping up spending on advanced chip packaging in hopes of capturing more of the burgeoning demand for the component in Artificial Intelligence to build, highbandwidth memory. The firm is investing more than one billion dollars in south korea this year to expand and improve the final steps of its chip manufacturing. Chinas foreign minister called the level of trade curbs the u. S. Has placed on the country restrictive. The u. S. Government is pressing its allies to further tighten those restrictions on chinas access to semiconductor technology. The biden administrations latest push aims to plug holes on export controls it has levied in the past two years. Lets stick on the tension with the u. S. And china now because today the house energy and Commerce Committee plans to act on legislation introduced by a Bipartisan Group of house members that would give tiktoks chinese parent, bytedance, just 165 days to sell it. For more, bloombergs dan flatley. Dan, that of course seems to be where we are seeing the push going, get rid of the chinese ownership of tiktok. Dan yeah. We have sort of been here before. Its interesting. This is the latest push and does seem to have some momentum behind it in the sense that theres markup today dishes theres markup today in a house committee. We dont have any indication as to how the senate will act. This still has to go to the house floor and the senate potentially and the president so we are a long way from seeing this happen. And, you know, tiktok has been under some form of National Security review since 2018, and trump when he was president tried to. Ban it in that ended up in the courts. Some action plan to today in the house. Caroline tiktoks response is this is curbing free speech, a right to access such a platform. Do you think their argument carries weight . Dan i think the reason they are making the argument is because the First Amendment challenges are where they are on the strongest legal footing. There are broad exceptions in a lot of National Security laws for free speech. Obviously thats where they intend to mount their challenge. The sponsors of this bill, or at least one of them, mike gallagher, the chairman of the China Committee and d. C. , says this is not a ba. It is just trying to excise chinese ownership of the company. But in some ways that is not for him to say. The courts will have their say on this at some point. He has his argument to make and hes making it now. Caroline dan flatley. Brilliantly bringing us up to speed. Thank you. Coming we get to palantir. Shares rising ahead of their conference. We go to that event next to hear from the ceo, alex karp. From San Francisco and soon from palo alto, this is bloomberg technology. When i was your age, we never had anything like this. What . Wifi . Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Thats walltowall wifi on the xfinity 10g network. Caroline welcome back to bloomberg technology. It is 2023. Venture dealmaking declined across the board. Female founders were impacted. Interestingly they still managed to secure a record share of total deal value according to the latest report put together by pitch book. Lets dig in with annemarie donegan. 28 does not look too bad. Can you put that into numbers. What money is being raised . Annemarie we are looking in a population that has grown significantly. When you contextualize that and look at the funding for companies that have no women representation, you are seeing companies for lynn hundreds of liens of dollars. Some difference but hundreds of billions of dollars. Some difference but companies are hanging on to their share of the total. Caroline is there a number for that total . Annmarie in the network of 30 billion. Caroline why is that number heading up . Is it because there is more . Or is it the companies are starting to get of such as size they will raise a decent amount . Annmarie we are seeing fewer Companies Engaging because the conditions are so difficult. It is more about the quality of those companies. Standards are getting higher for investors. They are getting more discerning with the amount of capital. We are seeing the Larger Companies hanging onto that share. When we look at female Founding Companies we see the portion rise and that is indicating those companies are at a High Standard and able to pull in Additional Capital and have some resiliency on the downside. Caroline some of the unicorns very early in 2023. There was maven, a health care company. Is there a sector that does well . I think of health care being a key area of focus for female founders. Or are we seeing the ai revolution being driven by women . Annmarie there were not be a conversation without mentioning ai. A lot of women at the forefront of that. Really involved in this movement. That is one of the only verticals in 2023 that managed to pull in more capital than the year prior. Other sectors seeing a decline. Seeing some resiliency in health care. Climate tech as well. Some areas have been able to hang onto that value. Caroline it is interesting you bring up anthropic. Are you looking at numbers within the Founding Team . There is at least one female founder or is it more they have to be led by women . Annmarie we look at both. We are looking at companies that have one female founder. They may have a male cofounder or they may not. Then there the companies with only women founders and that population is much smaller, only pulling in a singledigit percentage of the total dollars. Caroline what about the people on the others of the table . Who are they going to for money . Annmarie that is a big part of the equation. When you have founders looking to enter the space you need an investor that can see the value of that founder and the company itself. A big part of the equation, when we look at the breakdown of gender, are the check writers. These are the people who determine whether a company gets funded. We are looking in another area that is heavily maledominated. In most cases you will have a situation where as a female founder you are pitching to mostly men investors. There are definitely implications. Caroline thanks for bringing with us. Annmarrie donegan. From pitch book. Next up we talk with palantir. This is bloomberg technology. were lucky to have this team working for us. Our therapists give their all each day, by helping those who need it most. We take great pride not just in the job our team does, but in them as people. Our people. And while were in the business of taking care of others. Its important our therapists know that with benefits from principal, theyre taken care of too. at morgan stanley, old school hard work meets bold new thinking. To help you see untapped possibilities and relentlessly work with you to make them real. Caroline a comeback. We have to get welcome back. We have to get down to palo alto. The Big Conversation about ai and ed ludlow is there. Ed the focus for palantir is its commercial customers. The nearterm catalyst has been the contract around titan. I did sit down for an extended conversation with the palantir ceo. He is showing progress on going to a wider commercial customer base, but also frustration about how business is done in this country. Have a listen. Im exquisitely happy about how well we are doing in the government and commercially. The most important change in the u. S. Government has nothing to do with palantir. The idea software would Power Intelligence was viewed as something esoteric, scandalous. The idea americas primary advantage was viewed as also esoteric and selfserving. Our adversaries are as good or better at Building Hardware systems and have a deficit of building software. Ed what is different about titan compared to mavens you are entering new relationships with other hardware providers. Explain how that is working in this case . Alex i see this as a commonality. America needs to establish dominance on the battlefield. Maven is one of these projects that actually took what america is the best at in the world, software, and put it in the hands of our fighter. At enormous cost. If youre sitting at palo alto, i had people protesting, putting up shades in front of our office, calling us nazis because we were dedicated to serving the American People and we realized we should defend the country with every asset we have. What happened on the Silicon Valley side is because of the power of it and because of our success, people realized this is a place you should invest and make america even stronger. And then what happened is you have a whole ecosystem of defense startups and it ecosystem of people inside the pentagon ready to embrace that that are doing things very similar to what is happening in the commercial space. We will look at software not off powerpoint. We will buy software from people who have sold software commercially. What is unique about titan is not the difference, it is the logical extension. If your software is so good why have you not sold it commercially and make yourself billions of dollars . That simple insight which you see on the battlefield in ukraine and in israel is something that is hard for institutions to internalize. Depending on this step is one of the most historic steps ever because what it basically says is we will fight for real. We will put the best on the battlefield. What is the best . It is a team of people led by the most Prominent Software provider in the world. Ed there something you said that inside the pentagon people are ready. Bloomberg did a thorough report on the use of maven, and the complaint from operators is it is still not quite there. Im just offering you an opportunity to respond to that. Alex i am not going to respond because i would have to tell you all sorts of things. There is a long and important article everyone should read. I will tell you the way our adversaries see maven. I will tell you what the average citizen thinks. We are spending money on things that are more valuable than what we are investing in. To going to more detail you have to go into all sorts of classified things. That program is one of the shining stars of what this country has done and serves as a template for we are going on the offense and we will assert dominance and we will negotiate afterwards. Ed i host a Technology Show and i want to talk about the technology, its current capabilities. Is that platform ready to move from assisting in targeting, which is intelligence, to giving more information . The article looked at the idea there is a hope from Intelligent Services and the u. S. Government it can be one day in a position to recommend which weapon to use to give more tactical advice . Alex let me give you commercial examples because i cannot go into what it can do and cannot do. Right now you will see a normal nonengineer sitting at their terminal casting satellites and exporting logic inside the Security Model inside a company to figure out which satellites should be over which part of their agricultural assets and what should happen based on the weather conditions. You can imagine how you would do that with a weapon system. This is what palantir commercial , not palantir highly classified , palantir with someone that has been hired five days ago that cannot write code that is very smart, may not speak english and has just entered the enterprise. That is happening right now. That is why this revolution, which is highly confusing, it is confusing because a lot of the stuff is bs, than there is the poetry side of it. I love poetry. If i could read more poetry i would. Ed you mean what . Alex someone delivers a powerpoint. Everybody has to try to sell something. If you do not have something to sell you will sell words. You cannot have the car you want , but you can have the car you do not want. That is a plague on many societies. Less so america. There is a problem in europe that there are no high end software vendors. Our adversaries have this problem. Ed and youve spoken about your frustrations with europe not being more adoptive. Alex i spent half my life in europe. I want the west to win. If youre sitting in a society that has led an Industrial Revolution and all of a sudden the sudden the Industrial Revolution is happening in one place, that is confusing. It is confusing because three vendors are saying they will offer the same thing. I will explain to you why it does not work. The other is it does work but it is only poetry. There is a third category which judges by the fruits we provide, which is great, we will not argue about this part of our product. Well show you what happens in four to six hours as opposed to what happened in your whole enterprise over the last two years. Ed we will talk about the commercial business and boot camps. You talked about the confusion of the revolution. Today will be the first time a president says Artificial Intelligence in a state of the union speech. It is a very simple question. What is your summary of this administrations leadership of the u. S. In the context of ai . Alex alex it is very helpful if you spent a lot of time abroad. If you look at this internally, there is a long list of criticisms you can make of anyone. Whatever we are doing is working out pretty well. Could we have Better Regulation and understand these things better . We are dealing with a revolution. That is one of the confusing things for americans. Normally you have a revolution and multiple countries are participating. This is a revolution where their technology is being produced in america. Ed you have multiple customers. Take israel where you are doing some work with that country. The administration is pushing for a ceasefire in israel. How do you manage that when it looks like your First Priority is United States . Alex we happily supply our products to our allies, including israel. Ed and i think theres any question of does israel have the right to buy worlds best technologies and implement them, i think israel has decided they have implement at many of them and publicly discussed some of them. Palantir, the question is why we say in public when everybody else believes in private. We should defend the west and not apologize for fighting terrorism and will provide our tools to our allies. Ed you told my colleague one month ago we do not know what to do with the onslaught of demand in the commercial context. You know what to do now . Alex no. You will see a boot camp. We have not been able to meet demand. We have had to tell people that cannot accommodate them. We have hundreds of people coming, not just people. If you look at it from the internal dynamics of how do you deal with the contracting come the implementation, it is true these things have gone from taking us three months to four hours. Ed the idea is you cram four months worth of work into a day. Alex it is not even a day. It is ours. Ed fly is that important to palantir . Alex the most important reason is we can fight with people about powerpoint and their ability. Ed why do you beat why do you keep bringing up powerpoint . Is the point youre making your competitors go in with a deck . Alex what i am saying is if you have a product ed you said powerpoint many times. Alex im telling people you may have a product, i am showing you our product. I can tell you they very buttoned up and not showing any leg. We show our product. People fight us. Slick power points and great steak winners. We are bad at power points and steak dinners. We do not play golf. We play software. Compete on your product. What is special. Do i enjoy humiliating people who have better stake dinners and sharper knives and better golf swings . Yes i do. I like that we win in that way. Why are our clients happy . American industry knows this is a structural advantage and it needs the best products. Why is the boot camp overrun. Clients themselves are tired of dinners, they want to see products that actually work and live up to what people are saying . What are people saying . You will transform your enterprise and make it safer to run your enterprise. Youll be able to uplift workers who only could be engineers and now they could be everywhere. By the way you can do all of this in america. You can manufacture like your manufacturing japan and taiwan. You can use workers that used to have to be engineers. It is also fun for palantir because we are winning. Ed i have to ask you before i lose you. The most common question i get from the audience is when will there be a direct consumer or a publicly available version of aip . They see you as a leader in this space palantir. Alex whatever they see, i am happy. Palantir, you are seeing the tip of the iceberg when you are buying our product. Ed you cannot buy it if you are a person off the street. Alex you are seeing the tip of the iceberg of our product of element and we will show more and more of what we have. A lot of people asking the questions are not academic. They are investors and they have supported us when we were down on the ropes those are the people we are fighting for. Caroline anyone else thinking about steak dinners right now . Palantir cofounder and ceo. What in interview. What an interview. We have to pivot and think about ai getting into the hands of customers. How are people using generative ai . Amazon web services has launched an ai Competency Program for partners aiming to help customers figure out what partner to use, what product are we using within their business and have generative ai suit them , not just something they aspire to. For more on this program and what it means for the launch partners, lets bring on the amazon president s of web channels. I love this focus on the fact you are saying this cannot be an aspiration, people have to be able to use it practically in their businesses. How are the using aws and the offerings of Large Language Models to change their businesses . Thank you so much for having me. I am excited to be coming to you live from seattle where we are hosting 200 of awsmost Strategic Partners and we have launched the generative ai competency for our partners you mentioned. I am excited we have over 45 launch partners. They are doing exactly what you talked about, which is demonstrating Technical Expertise in generative ai technologies. Technologies like amazon bedrock and jumpstart and amazon q. These partners have demonstrated not only experience and knowledge of those technologies but customer success. Customer success with multiple use cases. We are excited to showcase that to customers because customers are thinking i have heard about generative ai, i know it can transform my business, but i who can i work with and what are the right use cases i can use . Ed give us caroline give us standouts where we are already seeing use cases. How are people using the latest set of models within their business to change things . Alex the announcement we made the announcement we made this week is exciting. Claude 3s model is the most exciting model on the market today. It has the best priceperformance. Why is this interesting . What it allows customers to do, customers like crowd strike, they use it to power their own generative ai capabilities and they are able to handle things like large prompts and provide scale and safety. That is something critical to how aws use generative ai. One of our competency partners work with a Company Called magellan tv. This company has a Large Library of documentaries they make accessible to a global audience. What they want to do is enable the audience to be able to watch those documentaries in every language. Both have transcribed the translations and also Foreign Language dubbing. That is a tough problem. You have to address slang, you have to address profanity, you have to address inflections. It was cost prohibitive to do the old way. It cost about 20 per minute. With generative ai they were able to reduce that to less than a dollar per minute the lab magellan tv to reach a global audience nearly instantly without technology. Caroline i love that tangible example. What is also on the front of peoples minds is safety. How do you ensure the offerings you are providing are not going to be making things up but also have ethical implications . Responsible ai we have been designing security integrated into the products from the beginning. It is more important with generative ai that it has ever been before. We have heard customers and partners state concerns about generative ai. Customers have the ability to aggregate data and insights from different sources. That is why we designed security from the getgo to make sure there are guardrails so individuals who should have access to the data think Financial Data and other proprietary information have access to it. Those who do not can still have access to the generative ai tools and have guardrails based on the data they are allowed to have access to. Providing policy and governance to ensure enterprises are able to protect their information. This is critical for every enterprise to think through and it will be the way we are able to ensure generative ai is adopted. Caroline great to have time speaking with you on the day you are announcing this. Amazon web services. That does it for this edition of bloomberg technology. Do not forget to check out our podcast. You want to go back and listen to that conversation. This is bloomberg technology. Xichun, xichun, xichun youve got more options than you know. Book now. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we got him under a new plan. But then they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. The price lock, the price lock. So, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. To the world of business, this is balance of power