From Marhard where Innovation, Money and power Collie in Silicon Vallet NBN.
This is Bloomberg Technology with Caroline Hyde and Ed.
Ludlove live from New York and San Francisco. This is Bloomberg Technology Coming up. Apollo offers a multi billion dollar investment in Intel after Qualcomm's takeover approach.
We discuss the reports.
More US curbs and more potential trouble for China evs, and.
A deep dive into the CEO Palenteer and his love hate relationship with Wall Street as he enters the S and P five hundred. For first, we go straight to the key, chip and M and a story ed.
Apollo is offered to make a multi billion dollar investment in Intel, according to sources, with the asset manager indicating it would be willing to make an ect like investment of as much as five billion dollars. According to one of the sources Bloomberg spoke to that follows shock news on Friday that Intel have been approached by Qualcomm in recent days about a quote friendly takeover. This following Intel announcing its own strategic rethink just one week ago. Bloomberg's
Ian King joins us here in San Francisco. Let's start with the latest, which is Apollo considering an equity like investment. What do we know about that? And why would Intel want capital from an asset manager like Apollo?
Yeah, I mean Apollo has already we need to point out apollow has already invested partially in Intel, taking a part of a stake in a factory in Ireland. So what Intel has been doing is is this smart capital strategy to either that it calls it, which is basically bringing in money as co investments to kind of like bridge loans for a lot of these investments that it's
making to build this factory network. So this might be kind of an extension of that and an a broader sense to sort of sponsor this general turnaround of the.
Company, a turnaround that has eroded its market capitalization and made it a potential target for someone like a Qualcomm in extraordinary reporting coming over the weekend, and it would be a massive tech deal, it would.
And you know, there are so many caveats that need to be thrown into the mix here. What exactly does qual does Qualcom want the whole of Intel? Is it an actual firm offer? Is anything on the table yet? A lot of these things are unknowns at this point, and you've seen already a reaction towards this potential alliance
saying that regulators would never allow this to happen. It doesn't make sense in terms of what Qualcom does, but as far as we understand, there is at least a consideration of something going on here.
We called it a friendly takeover offer, which I think with time we'll learn about. There's a technology story which Qualcomm has tried to diversify away from it its legacy business, which is smartphone handsets, and it's made some progress in the PC market on on based processors. So then you look at what would they gain on the product side of going after Intel, which a xady six based processor, and forget the fab part for one minute. Explain explain that technology field to us.
Yeah, I mean Intel's technology, as we know, has been dominant in PCs pretty much since the PC came into existence. Quadcom has over the last few years tried to get into that with its smartphone technology. Hasn't really happened yet, but more recently it's showing more promise, it's showing signs of actually making a dent in that. If it were to take on Intel's xady six business. It would have actively been throwing that business away. There would be mixed signs,
what's it going to do? Which technology is a fundamental one that's going to go forward? Lots and lots of questions there, but certainly would be getting hold of still the dominant brand in PCs.
In King reporting this throughout, and we must add companies thus far have not commented to us about the story. Let's go now to an investor at least in Qualcom. Johan Feeney, partner and portfolio manager at Advisors Capital Management. You hold shares in Qualcom. If it could possibly go through regulators, would it be a good deal from your perspective?
Well, you know, Carolina, I think, if anything, the interest that Qualcom might have an Intel would be strictly on the design side, on.
The chip designs for PCs.
That's still a huge market and just Intel and AMD or players there, and it's likely to remain the dominant form of technology.
For the PCCPU.
So I mean, I could see Qualcom being interested, but I would think that the regulators would have a hard time because as Ian just pointed out, it would suggest that Qualcom would be ready to throw away its approach to PC chips that it's arm based, and that would definitely reduce competition.
But on the other hand, for Intel, if something like Qualcom were to buy the design side.
It would give into a huge infusion of capital which it desperately needs to shore up the manufacturing side, to give Intel the time it needs to fix the manufacturing process, and potentially, and this is a stretch I think, for Intel to get into the foundry business, which it ultimately would like to do, to diversify.
On that fab business. That's why the relationship already lies with Apollo that they've gone in with a deal in Ireland. What do you think about a capsule infusion, What sort of form you'd like that to take if we did get one from Apollo into Intel.
Yeah, I mean five billion dollars would help. It's just going to take patients of investors though, because five billion, when you look at the cost of a new fab is really almost a drop in the bucket. So Intel does need a lot more capital to give it the time it needs to fix the manufacturing recipe, which has really suffered over the last five years, and then to
be able to build the kind of libraries. It would need to become a foundry player like TSMC, and we know Intel has tried in the past and failed under previous leadership. Now Pat Galsinger has more experience and you know, I think as the right person to try to make this happen.
But five billion will help, But it really is.
Going to take patient investors, potentially more infusion of capital get that job done.
As he points it out, Juan Apollo has an existing relationship with Intel, and when we spoke to them earlier in the summer, they did hint that there could be an expansion of that.
Listen to this clip from June.
These type of blue chip large cap companies, they're not talking about one hundred million or five hundred million, They're talking two billion, five billion, ten billion plus, And so the ability to really come up with those creative solutions in scale is really really critical. But I think you're going to see more and more of this from absolutely more from Apollow, but in general, just the need for this type of capital is insatiable.
So based on that from Apollo co President Scott Kleiman, not such a surprise that this has come up. On the other hand, this is a firm that started as a distressed investor in the nineties. When you see a name like Apollo circling Intel, given the news headlines of late what does that make you think about.
Well, you think about the difficult situation Intel is in and something like Apollo coming in to help.
It reminds me of how AMD's.
Manufacturing site was ultimately rescued through investments by Abu Dhabi and silver Lake, and that allowed AMD to spin off manufacturing and really be able to focus its attentions on the design side, which ultimately led to its current successes.
So, you know, we could see more.
Of private capital coming into Intel, and that would really help. There's a huge potential there obviously, but they have some work to do to fix that manufacturing recipe. So I think it's a positive sign for the ultimate recovery of Intel that we're seeing this kind of investment being potentially made by Apollo, and I suspect it wouldn't surprise me if others came in as well.
Joanne at a dinner the other night with another semiconductor CEO was not Intel. This person said that Intel is too big to fail in the context of its footprint in the United States, is that sort of territory we're talking about right now.
You know, that's an interesting take, and I think that's a fair way to look at it. Clearly, you know, the US government is interested in making sure that we have manufacturing capabilities for the most advanced chips in this country for obvious reasons. The vulnerability to the political up people, you know, that might be possible.
Down the line. So I think that that's a fair view of things.
And so that's why I think Intel has a better chance of recovering then if we weren't in this kind of a world where geopolitical risks were becoming more prominent.
And of course this is why it's American names that I an American company, giants such as Intel. Meanwhile, we think about who else could potentially have skin in the game. There was a report that Broadcom will not be following Qualcom in terms of eyeing a bid. What of other companies you think could look at parts of Intel?
Yeah, you know, Caroline, I think when you look at a company like Broadcom, they've been really careful about the sorts of acquisitions they make. Companies that already have a leadership position that are succeeding that perhaps need some fine tuning where they can extract, you know, remove costs and make them even more profitable. So I can see why Broadcom would not be interested in this kind of a situation.
You know, other companies.
I think you just have to think about the regulatory challenges. Yes, it has to be an American company. I think Qualcomm is probably the most likely suitor. But again I think just for the design side. I think the manufacturing side would probably in this kind of a situation be spun off, and that cash infusion from a Qualcom could really help lead to more success down the line for Intel.
And again, neither Intel nor Qualcom has commented on any of the reporting at this stage. Joann Feenie, partner of portfolio manager Duradvisors Capital Management, someone that's covered this industry for a very long time as well. There's another story re tracking meanwhile, TSMC and sam Sum have discussed building major new factories in the UAE in the coming years to help satisfy soaring demand for AI computing. That's according to a report in the Wall Street Journal, citing sources.
The journal says the discussions are in early phases and the projects might not pan out, given the array of technical and other hurdles that they face.
Caroen so much coming up ed for one, more curbs could be on the way for China's auto tech. What this means the EV sector and well beyond that. Meanwhile, look we've got to just check in on these markets more broadly. We are having another positive day after two positive weeks on the now's that one hundred were opera only about a quarter of percent, But we know some of the chip naykers that are on the move today. This is Bloomberg technology. Now more potential trouble for China evs.
US officials are set to unveil a proposal to bam the use, the importing, the testing of Chinese and Russian technology, in fact in automated driving and vehicle communication systems. It's according to sources or please to welcome very late from Hong Kong one Danny Lee who has been reporting this out and it feels as though this is getting ever more expansive, not just the hardware but the software as well.
Yeah. Absolutely, I mean after we saw this quadrupling on tariffs on Chinese evs to over one hundred percent, now is the targeting of the China and Russian made kind of software and hardware that's tied to these kind of connected, autonomous, driverless kind of systems. We will hear more from US officials and particularly the Commerce Department, But all of this is just to try and defend and strength in the US auto industry, which has really struggled against the Chinese
EV makers. And it's just fascinating when you look at China's biggest EV maker right now. Now it has a market cap that is combining the size of Forward and General Motors, and so you see just how much in terms of leaps and bounds these Chinese eed makers have come on, and so how the US have had to try and kind of step in here. And you know, when we do see the US taking action, there is legitimate concern when it comes to data privacy, data management,
transferring of data, and also hacking. But this really does set the stage for more kind of tensions in this kind of strained US China geopolitical relationship.
This is interesting because for our Bliembo technology audience around the world, tariffs on a physical product like an electric vehicle are hard to are easier to understand. What's harder to understand, Danny is what is a software curve. What would that mechanism look like.
Yeah, I think it's more the software that's contained inside some of these products and making these systems runs particularly around the cars and ticket as we see a bigger proliferation of electric vehicles, for example, which are preinstalled Chinese software and particularly hardware, even for example, Lieder a key
part of this autonomous drivers systems. And so we are seeing that, you know, there is this this kind of reaction that we will wait and see for what China says and once these plans are laid out by Washington. But it's interesting that, you know, the first time we saw these tariffs being hyped by the US, even US Secretary Treasury Secretary Janet Yellen was hopeful that China wouldn't retaliate.
But they're clearly that expectation that China would and some analysts we had oken to today, I think that this raises the likelihood that this could be the case. But it is also fascinating because and Tesla is in the middle of this. They need China to approve its drivers SYS system to be rolled out and be approved by net and it seems like if Chinese software and hardware is blocked from.
The US market.
US tech could benefit in somewhere like China.
Bloomberg's Danny Lee terrific reporting from Hong Kong, Thank you very much. Sticking with evs, a new trend is gaining steam among thieves hunting for copper, vandalizing EV chargers. Charging companies are catching more and more people on camera, cutting cords across the entire stations, typically to strip out the copper.
And sell it for a profit.
This year, through June, nearly one in five US public charging attempts ended in failure. According to Jdpower, roughly ten percent of those aborted sessions were due to a damaged or even missing cable garrot extraordinary.
Meanwhile, we go back to the political discussion right now, because Vice President Harris says that she will help grow investment into official intelligence and digital assets, her first comment on the crypto space since running for president. Let's discussed all of this a Boomberg's Mike Shephard in DC. Finally she starts to talk of crypto.
It feels like, well, you're right, this is in some ways an olive branch from Kamala Harris, a Democratic nominee who will be facing off against Donald Trump in November for the presidency. This is an olive branch to an industry that has been highly skeptical and critical of the Biden administration, which they see as taking a much more burdensome approach when it comes to regulation and to oversight.
And this is a sentiment that Donald Trump has seized on in trying to court some of these depocketed crypto investors, a number of whom hail from Silicon Valley.
What I find interesting about this, Mike is it was in the context of a fundraiser, kind of a calendar date on the campaign trail. Do we know who was in the room who she was appealing to with the AI crypto message.
Well, there is obviously the investor message of the people who would be in the room, but she is trying to signal this more broadly. There are reporters attending all of these fundraiser events, so the remarks are calculated from more than just who is in the room. She is trying to signal that and this hearkens back to her roots, going back to her youth in the Bay Area. I mean, she is from California. She is somebody who understands and
embraces the tech culture. She is trying to signal that she is much more open to innovation and all that would need to go into it. Of course, is not walking away from any call for safeguards on industries like artificial intelligence or cryptocurrency and digital assets, but she is at the same time trying to signal that, hey, we want to work with you, we would like to do business with you, and not stifle innovation.
Meg's Mike Sheppet out of Washington, d C. Thank you very much.
Today cloud Flare has announced a first of its kind way to help websites analyze and control how their content is used by AI companies. Now it's also offering a marketplace for pricing content mined by large language models. Let's discuss all with this with cloud Flair CEO Matthew Prints. Just set the scene for us for a moment. The Bloomberg website, any website, how often are we find its content is being touched on, used mined by large language models on a daily basis?
Yeah, so for the average website, about half of the traffic that it receives is from some sort of automated bot and the large language models, the AI bots are growing like crazy. They're about twenty five percent of the total bot traffic.
So if you're putting.
Content online, it's getting scraped as being included these lms. And up until cloud Flow launched what we did today, you didn't have any control over that.
And now how technically do you have control over it? What are you doing behind the scenes to make sure that it's either stopped or at least monitored.
Yeah, So Klettler has been from its earliest days the best in the world at identifying what's a human visitor to a site and what's an automated or a bot visitor to a site. So what we've done is taken that same technology and then classified all of the bots that are being used by these AI companies. And then the first step is giving anyone with a website, anyone with content, visibility into how their content is being.
Accessed by these bots.
The second thing we do is we let you pick and choose either I don't want any of these bots to access my site, or maybe I don't want certain of these bots acts at the site.
Once those two things are.
In place, the last step, which we've announced today but are going to be rolling out over the months ahead, especially a content marketplace where we can return the quid pro quo, where content creators can get actually paid for the content they're creating.
That's helping train these large language models, Matthew.
In the first instance, who's signed up for this list, who the early customers are well.
So this is available for free for every single cloud Floer customer, and cloud flow sits in front of more than twenty percent of the web, so a huge percentage of the web is using this.
What we've heard.
Though, is from our largest customers, large media companies that are creating a large amounts of content that they can't keep up with these AI bots, and so cloud Flower is in a unique position to be able to say, listen, if you're scraping this content, if you're getting value from this content, as an AI company, you should be compensating the content creators.
And yes, the large companies like Reddit.
Are able to get these deals done, but we want to bring that to anyone who's creating content anywhere on the web.
Matthew, I want to go to the recent use of last week, we covered it from the ground in Brazil that X, the platform formerly known as Twitter, used your technology to briefly make the service accessible again in that country. My specific question is Brazilian authorities have said that cloud Flare, your company, have worked with the government to understand how they did it. Why did you work with the Brazilian authorities and what did that look like.
To be honest, I don't know what the Brazilian authorities are talking about because we didn't specifically work with them to block X or to make X available in Brazil. What I would analogize this too, is everything that's on the web at the end of the day has a number associated with it, which is the IP address.
It's sort of like your telephone number.
And you can imagine in the days before you could port your telephone number. If you switch from one cell phone provider to another cell phone provider, your number would switch.
Same thing happened with X. We want to deal with them where they.
Started using our service, stop using a competitor of ours, and in the process the IP address switched.
Brazil was simply blocking.
The old IP address that made them temporarily available. Brazil was then able to block the new IP address, which was accessible. There was nothing that Cloudfler did to facilitate that. There was nothing that X did to make that harder on Brazil. It was simply a coincidence of us winning an enterprise customer.
The timing is a coincidence, though, Were they one worldwide or just in Brazil? How much was this a one off transition?
No, it was across the across the country. And again, you know, sometimes things are just coincidences. But in this case, obviously I think they were surprised. We were surprised by the attention. And again, there was nothing that X asked us to do in terms of eliminating the ability for Brazil to block the content inside of Brazil, and there was nothing that we did to further facilitate the ability for Brazil to block what they what?
What they were? What are you doing? And today my understanding is that X is once again blocked in Brazil.
Cloud Flair CEO Matthew Prince, thank you for joining us here on Bloomberg Technology.
We appreciate it.
Welcome back to bluemog Technology, Caroline Hiden, New York, and our.
Mad Bloodlow in San Francisco. Let's get a quick check.
On these markets because we are at the moment seeing and once again a risk on tone. Look, we're up three tens percent on the NAS that one hundred. We've had two straight weeks of gains. Large part this is a macro field, This is the idea of FED rate cutting, and indeed, once again Rafael Bostick speaking up about the need to normalize rates. And then of course we have a little bit of manufacturing data that just shows we've still got a robust, it's slightly slowing economy here in
the United States. So we're up four tens percent. We want some of the individual movers, though, when we're looking at the benchmark, because well I'm looking at the florry of news surrounding this key name. We dug into it deep at the top of the show. We remind you once again that Intel is up one and a half percent. It really moved on Friday after the reports, of course, that maybe it could be being eyed by a competitor such as a qual Com that's down by one point
eight percent. Regulatory discussions abound this morning. Broadcom is not eyeing it, we understand from the reporting of Bloomberg. But of course there was the news that Apollo Global is eyeing perhaps a multi billion dollar investment of some shape or form into d TELL they already have a strong relationship, and let's just talk about the rebalancing that also happened over the weekend and is in played today for the S and P five hundred d.
Today, Palenteer is getting a spot on the S and P five hundred and milestone. The data analysis giant has long been after and yet Palenteer co founder and CEO Alex Carp has had a bit of a love hate relationship with Wall Street. Bloomberg's Lazett Chapman took a deep dive into the story for Bloomberg Business Week and joins us, Now, as you know, I've spent a lot of time with doctor Carp. We can get into him as a person,
we can get into the company. But what was it you were trying to do with this profile in the magazine? It's a fascinating read, right.
So, as you said, this has been a long time goal of Carps and the companies to join the SMP.
And what's interesting is the huge split between the way traditional Wall Street investors, institutional investors approach the company and the retail investors, who he calls Tendy's who have created this massive following for a Palenteer and all things Karp, including reddits calling him doctor you know, Daddy Karp and the like, and this kind of irreverence that he has carried through and he promised he would when he went public, and he's carried it through to today.
The best bit is if you scroll all the way down to the bottom of your story and the link, the YouTube link that just shows us doctor Carp talking to his loyal investors in the retail community about being admitted.
To the s and P five hundred. Let's just watch a little.
Bit that into like Lizette run the tape.
They do not comprehend how we could have turned a switch and gone to gap profitability and gone from what adults, professional managers, and some analysts thought was a Frekenstein monster powered by a freak show leader me to a dynamic, clearly profitable company worthy of admit to the SMP five hundred.
I'm hoping we'll be able to see him powering his way through the woodlands with those poles. Lazette, but that speaks a lot to his desire to work against him many ways, wool Street, but now he's having to appease him at the same time.
Yeah, that's right, and it's interesting because a number of retail investors do back him for the same reason that institutional investors don't are not backing him at the same pace and fury, And it really breaks down to two things.
Number one is tech and number two is leadership. Now on the tech side, a number of institutional investors simply don't believe the Pollenteer's claims that it's AI sales are going to hit the traction that they say that they're going to, both on the commercial side and also in the government. We've got to remember that Taluenteer for the first time this year is going to be making more money from its commercial customers than it have than it
has in its government once. Now on the personality side, there are some institutional investors and some analysts that simply don't like the irreverence that Alex Cart brings to the table and have also questioned his management style and some of his judgment calls, including the ill fated spac venture where that they launched about two years ago, and some analysts say that they still haven't completely you know, taken their lumps on even though they have you know, you know,
reconciled it on a financial basis.
Team in New York. Let's just play it again, Alex Carp.
Walking through the woods, because it is him, It is absolutely him. He's unusual, he doesn't behave like a typical S and P five hundred CEO.
He's very outdoorsy.
He has moved himself and the company to a certain extent away from California to Colorado, but he still delivers. You know, he's combative. Just explain more to me about him as a leader, as a person, and why we care, why we've written a business Week piece, right.
The interesting thing about well, there's so many things that's interesting about about doctor cart or Alex Kart, but one of the big ones that really is important to focus on is the fact that he, along with his two co founders of Palenteer, Stephen Cohen and Peter Teel, have structured the ownership of this company so that they have
super voting rights and perpetuity. They did this as they when they structured the company to go public, and when the S and P relaxed the standards allowing for multi structure shares to be accepted. Palenteer was admitted to the S and P with that. So we do care about him because he will continue to control it.
And co found of Pizza Teo President Stephen Kuhn getting pretty style treatment in that way? Is that Chapman is a beautiful read. Thanks for coming on to describe it, all En. What have we got coming up?
The other news headlines in Talking Tech and First Up, the US and India have agreed to work together in setting up a semiconductor fabrication plant in the South Asian nation. The proposed plan with bolster manufacturing in the country and will be enabled by India's Semiconductor Mission and Strategic Partnerships plus. Right Move said it will contemplate in eight point one billion dollar sweetened bid from Murdoch's Area Group, its third
proposal in less than three weeks. The offer values Right Move two point eight percent higher than its previous bid. In a statement, the Right Move says it will carefully consider the increased proposal. And Thailand's virtual banking race heats up. The Bank of Thailand says they received five applications but plans to grant no more than three licenses. The central Bank expects to announce the winners by mid twenty twenty five, but did not name any of the applicants.
Character coming up a big fundraise from Headline eight hundred and sixty five million dollars in its latest fund. We're going to be speaking with partner that's coming up next. Bloomberg Technology.
Headline announced that it's raised eight hundred and sixty five million dollars to invest in growth stage companies and has hired a new head of Growth to lead the fund. Here to discuss this Headline Growth Partner Nancy Ziao. Welcome to Bloomberg Technology Big Fund Growth stage goods. We've been doing a lot of early stage. This is an interesting development. What is the mission statement of the fund and what do you want to be doing with the money?
First off, thank you so much Ed for having me. I'm really excited to talk about our new global growth fund and strategy. Headline broadly has been around for almost three decades and this growth fund represents a new step in continuing to back great founders generationally across all countries and be able to support them in all parts of their journey. So I do think in terms of Headlines overall growth strategy. In the past, they've been focused on
doubling down on existing winners in their portfolio. This new growth strategy is brought on a new team, so myself included. We've all come from various different institutions, bringing lots of learnings from all of the great people we've worked with and the great track records and resources and networks that we have, and we're really trying to find the best founders and support them to the ends of the earth using the great back end that Headlines already build.
But finding them can also be challenging, right, I think you know, the firm has experience, but the environment's different. You know, you're seeing series as now where the round size is so ginormous it is sort of reminiscent of a growth stage round even three or four years ago.
How do you play that?
I'm glad you mentioned that. So, just backing up a little bit to what you said in terms of finding them can be challenging. Headline's got three really unique aspects. I would call it the people, the global multilocal presence, and the proprietary tech and process. So in terms of this proprietary tech and process, the Headline team has really invested in a ton of back end infrastructure and they
actually walk the walk when it comes to that. I think as vcs we often invest in great tech and do we incorporated ourselves into our workflows, Well, Headline actually does. We've got a great sourcing tool called Searchlight, which basically our CTO calls Advanced Signal Processing, and we look at all sort of eight million entities of companies that there
are globally. We process all sort of public, proprietary and third party data sources and use our own in house algorithms that have been fine tuned over the last few decades and now we've got time series data spanning over it acade and then we surface the right signal for our global, multilocal footprint of brilliant investors around the world to then go meet and we've got fuel on the ground you're meeting.
You're meeting often Nancy at that point in companies that aren't just based on the West Coast in the US. You're looking at them in Brazil, you're looking at them in Berlin, you're looking at them in worldwide. When you think about these large valuations that Ed was speaking to, where is some of the opportunity that Searchlight and indeed, I know you've got other uses of technology within as well to be able to then look at ultimately making these companies more efficient.
Yeah.
Absolutely, we continue to see tremendous opportunity globally, particularly in Europe. We've got boots on the ground and great investors and partners in Berlin, Paris, London and other places like you mentioned, who actually speak the language, understand the local idiosyncrasies of all those cultures and companies and incentives, and we try to find the best companies there. In fact, in Europe, actually two decades ago, only five percent of venture funding
was flowing there. I think as of twenty twenty four, year to date it's something like eighteen percent. And when you look at the actual economic value creation globally, there's still plenty of opportunity for us to be able to appropriately match the funding sources with the great talent density and opportunity we're seeing there.
You've got such an extensive portfolio over a headline, some of them perhaps haven't been treated that pleasantly on the public market. I think of the success stories that have become a little bit beaten up like a bumble. It's been in the public market far fetch as well, But then you've been in the new really hot names Mistra for example, in France, are you going to lean into the AI opportunity. Are you going to keep on consumer type?
Where are you thinking some of your investments are going to land?
A lot you mentioned there, So across all stage is you know, I think we have to be aware of certain macro trends, but generational technologies, companies and products and founders are building as we speak right now and in every sort of market cycle, so we'll continue to back them, you know. As it relates to AI. Of course, it's a huge buzzword and a lot of companies are thinking about how they can incorporate the new generational technologies appropriately
into their workflows and into their products. I want to back up a little bit and just think through when there are big platform shifts or new technologies, how these get adopted. It typically follows this sort of S curve, which is to say, the first few years are kind of the early adopters that might be more experimental and
on the front lines of adopting this. And usually let's say after like twenty percent market penetration, it really inflects and it gets to that early majority and late majority, and after that it'll plateau or when the laggards have adopted it So I think there's been a lot of
excitement about these new gen AI technologies and lms. But when you're a hammer, everything looks like a nail, right, And I think the smart founders are thinking through which products are actually appropriate to apply which forms of intelligence. And there's a lot of nuance there that I wish we had time to cover today.
I wish we did too. Come back, let's get more nuanced. NACI shall headline, we appreciate it.
Trust in organizations and they're emerging technologies is declining. That's one of the insights from Deloitte's latest AI in Technology Trust Ethics survey out today, and we're joined by Deloitte's Technology Trust Ethics practice leader Bena Amanaf for more. In fact,
there are several conclusions. For example, if you look at the year on year change and you talk to professionals technology industry workers, many more recognize the good and the use of the technology, but at the same time, the extent of concern also increases.
What are the other findings?
Yeah, for me, that was the most exciting part that everybody's recognizing the value in AI but also recognizing the risk part of it. Here's the bottom line, Ed right. The biggest risk with AI is not using it at all in the organization, and people are kind of level setting.
The other big finding for me was, you know, eighty percent of companies have rolled out ethical tech training or AI ethics training, and seventy percent of the employees who take it are acknowledging there's a change in their behavior on how they approach technology or they think about technology, which is a huge turn rate.
Let's just back up a second, and what are the surveys showing that people understand ethical use of AI to be? What is ethics in this context?
There's a few.
We look at it from quite a few dimensions. The one that came up to the top, actually, Caroline, was on data privacy, and we have robustness and reliability of the algorithm, fairness and bias, whether the AI is safe and secure, whether it is being responsible, whether it is the right thing to do for society. So it covers a broad range but different dimensions. What we saw rise to the top Caroline was you know, the need for safe and secure AI.
I want to tap into something you just said. A conclusion is you have to be using AI. You would be foolish not to, Yes, you know, loads of people watching this show will work with Deloitte. Right if you're a technology company or a normal company, Deloitte might help you bring a new CRM system in something like that. How high is the anxiety to rush in AI tech right now?
I would say it was high a few months ago, but now it's kind of you know that risk factor is coming in early on in the conversation and the need to be responsible about it to mitigate those risks early on going in. You can get the full value of AI only if you also proactively some of the risks that come with it. The biggest thing that came out of the survey, The biggest concern is around reputational damage and the financial impact of leveraging AI.
So being in the takeaway is go slower, be safe, or something else.
Briefly, it is go first, but be aware there are risks that come with it, so address it proactively.
Perfect being AMANA. So nice to have you Deloitte's Technology Trust Ethics Practice leader on the survey. Now, one company that's really focused on AI is Meta and it's actually kicking off it's big developer event and hardware showcase on Wednesday. The company is likely to be showing off it's new VR, it's mixed reality technology, and let's get a check in on what to expect, Kurt Wagner, what are you training your eyes on?
Historically this conference has been all about virtual reality, right, So the quest headsets the metaverse with some and we heard a lot about a couple of years ago it was here where the company renamed Facebook to Meta.
So I do think we're going to hear a lot about that.
But really, you know, thanks to our good friend Mark German, we also know that they're going to be diving into some augmented reality glasses and we're going to get to see a prototype of these glasses that they've been building for years and sort of a glimpse into the future.
I don't think it's something that's going to be widely available to the general consumers, but it is going to give us an idea of what they view as the future of AR and how they're trying to take some of these bigger, bulkier glasses and move them down, scale them down to something that's much more manageable on their day to day basis for people.
Kat, you and I will be there together.
The irony being that stood side by side in real life will probably be interacting through the metaverse. It's interesting because we've had Google Io, Apple WWDC earlier in the summer.
How do people feel about Meta Connected?
Is it like kind of the roaring Festival of technol Ology that other companies hope that their annual developer showcase is.
I don't think it gets quite the reputation, certainly as the Apple event. Just so much history there with the iPhone, even Google Io. I mean, this is a sort of a conference that used to be really focused primarily on developer software developers who were building onto the API of Facebook or Instagram. Right, it has shifted over the last couple years to be more of a hardware showcase, which you know, Meta has invested in very aggressively.
But as you both know, I.
Don't think we think of Meta as a hardware player and the way we think of Apple.
Right.
So they're getting there.
It's growing in popularity, but I don't think it's quite on the same level as you know WWTC, for example.
Although people have been really excited particularly by the glasses, by the ray band collection and what does the developer ecosystem look like around that? How have they managed to build the right application to be served on these hardware.
Yeah, so the ray bands are the consumer version of what these glasses should look like. They're not quite as powerful, so there's not quite as much developer stuff happening with the ray bands, but there is a ton of developer stuff happening on the higher end right with the quest. Of course, I think with the ideas with these new AR glasses, it's somewhere in between those and that there will be a lot of developer interest in building on that moving forward.
Really quick cut, you kind of profile Lee chen Miller, somebody at Meta that has a key role here.
Who is she and why do we need to know about her?
Yeah, the super short version, she is in charge of those ray band metas, but she is also the head of product for these new AR glasses that they're building. These two projects are eventually going to meet in the middle someday down the road. So I think she's just a really important person to know because if this is the future of Mark Zuckerberg envisions that we're all going to be wearing these glasses on her head, this is
the person who's leading that product effort. Right now, you can read about her of course at Bloomberg.
This morning, cow Wagner.
Let's go read it and have a safe flight over to the West coast. We appreciate it, Thank you so much. Meanwhile, aren't another thick and fast edition of Bloomberg Technology so much to digest both East Coast and West Coast dead.
Yeah, there's a lot going on in the news cycle. I still can't believe that we are doing a story about Intel being bought by Qualcomm that I'm sure will continue to be a thing recap on the podcast. We have great reporting and great guests. You know where to find it on Apple, Spotify and iHeart Online always on the Bloomberg platforms as well. Caroline's in New York City with the team. I'm out here in San Francisco with the team. Brace for a busy week. This is Bloomberg Technology.