This is new meg technology. I'm Caroline High.
Let's go straight to some of the key takeaways from those very hearings Promotioninali Basek has been standing by also on Capitol Hill and Jannali the takeaways you think in terms of actually approaching Vasel three endgame.
Listen, On one hand, the lawmakers, some of them have heard their cry, they heard the bank CEO's case, and they believed it in some cases. But you know, they would have to go to the Federal Reserve and the FDIC and other regulators and make it sure that those regulators waited to implement these rules and really push this off now. On the other hand, one senator I spoke to of particular interest was JD. Vance, the Ohio Republican
who you may remember was a venture capitalist himself. I asked him whether the private credit industry, the private funds industry, would also face their own regulation, and he said that is very highly likely. He could see things going that way. So this push poll between the banking industry and their biggest clients are going to be very highly watched because
of course we know that. Of course, the meeting's ending right now, and you're seeing the banks in just a few minutes here are all about to walk behind me as well, probably Caroline, But you know, you do see this push pull between the biggest banks and their biggest clients at this point in time, given the tension behind the capital rules.
We're a tech show.
Let's talk about AI, the questioning that, crypto, the questioning that. What did you take away from some of the thoughts from Elizabeth Warren Senator Warren in particular.
Listen the feelings that have been left over from the crypto crash and how many millions of Americans have lost money and the finance settlement that we've seen so recently. Elizabeth Warren agreeing with big banks and their biggest CEOs never happens this way. But yet you have them agreeing that the crypto company should be facing the anti Monday laundering rules that these banks have had to face for decades,
and so that was someplace that they faced agreement. Elizabeth Warren has turned her attention from the bank CEOs over to the crypto industry. That has been made pretty clear today and the rest of the Senators are very, very worried, not just about crypto but about AI and whether you are in an area where you're calling a bank and you don't know whether you're speaking to our official intelligence or a person with your personal financial information.
Sanalie, we're going to let you start running after some of those bank CEOs and tis some of those senators who've just seen more behind you. We thank you so much,
Nalie Bassek. Meanwhile, and let's talk the democratization of finance retail access to certain assets in particular, Now retail investors on publics Brokeridge will be able to buy slices of corporate bonds just like they do with stocks, bringing a wider buyabase to what is of course a multi trillion dollar fixed income market joining us now Janick Malling his public co CEO and co founder, and ultimately it is
a more in liquid asset class and equities. But you're wanting to try and bring some sort of liquidity ability to buy directly on your platform, why yeah.
I mean with this unprecedented rise we're seen in rates, the retail community has grown a large you have a tite for yield, and with that they've rediscovered the whole world of bonds. We've we've seen that firsthand of public back in March of this year, we announced the ability to easily buy six months T bills and since went on to become them bought asset on the platform year
to date. Now, I think when you look at the experience around buying corporate bonds, the full universe of treasuries and municipals, it's really still quite antiquated, I would say, I mean, the last time race for this high was literally before the iPhone, and so the sort of old it's a little clunky, they're high minimums, they're difficult to use.
And what we're announcing today is that we're sort of building a modern alternative for fixed income to really bring the experience of finding, evaluating, and investing in bonds into the twenty first center.
Tell us what technology is necessary to bring it into the twenty first century.
I mean, the reason you're able to bring this.
Is because of your own sort of way in which your platform is using apex for example. What are some of the difficulties of providing such optionality to your users.
It's interesting.
So back in twenty nineteen, we I believe, were the first to launch fractional stocks, like the ability to actually buy slices of shares, and it really works in a very similar way here. And we also Apix is also our partner on the stocks business, and so after we saw the huge takeup of our T build product, you know, we reach out to them and we partnered on building
this kind of solution. Whereas obviously we're the prober dealer, they're sort of more infrastructure and pipes and regulative reporting and so forth. But it really works in a very similar way in that the liquidity around buying, even like these fractions, if it comes out of inventory, is actually much better then if you have to go to the
market every time. And obviously the bond market is a little bit different than the equities markets in terms of how the liquidity deband works, and so one could argue that it's potentially even more interesting for the bond market than it might be for the equities market.
We'll come back tell us whether or not this outstrips the demand that you've seen for the T bills. Thank you very much and for your patients throughout a plus of banking course. Hearing that we were sat through yannik Maning, their public co CEO and co founder on that product launch.
I mean, while.
Sticking with the theme of maybe more the artificial intelligence questioning that was going on in the banking hearing is dominating the tech news flow today.
MD in particular, they're holding that.
Advancing AI event today where it will flesh out its strategy for its high power AI accelerator.
It's the three hundred x ED.
You're standing by on the ground ahead of the event, ahead of an interview with Anissa Su, the CEO of AMD, and well, what's the anticipation. What are we really going to be hearing from her about the excitement for the product.
Yeah, Look, it's really about the battle ground for the market for AI accelerators, those high power GPUs that go into data centers and are right now training large language models or foundation models. Later when those models are developed,
powering the inference side of generative AI tools. That market has an incumbent in video in the H one hundred and this is really a side by psyche comparison in videos H one hundred versus them three hundred x. The technological advantage that three hundred x has is that it has HBM three, the latest generation of high bandwidth memory.
That is a technology that's not going into in video products until the second quarter when they come to market with eight two hundred, but they still have that market incumbent title. There's a lot of optimism and hype around this because it's a big potential addressable market. The analysts think that AMD can take some share in and.
Analy it's not trapping themselves for any updates on the financials, but certainly about the specifics of this particular product launch. We cannot waited for your interview a little bit later. Make sure you tune in live to ed sit down with the amdco Lisa Sue Banks ed Sweet you later. Meanwhile, look Apple sinking to reverse a decline in Mac and iPad sales, preparing several new models and upgrades early next year.
Of course he's behind the scoop.
Mark German joining us now to discuss and bring us the latest what they're planning new iPad Air, iPad Pro, MacBook Air models as well.
Yeah, Carolin, thank you so much for having me. Yes, we have a bunch of new iPads in Max coming out in the coming months. These releases are likely to have to happen in the March timeframe, so in the spring, just a few months from now, a little early on the Apple typical product calendar. So there's a few things happening here on the iPad side. There's going to be a new strategy bigger displays at lower prices, So there's
going to be two new iPad Air models. These are going to have the M two chip that came to the iPad Pro at the end of last year, and you're going to get a twelve point nine inch screen for the first time on a cheaper iPad, so potentially spending maybe five to seven hundred dollars less to get that almost thirteen inch display a laptop size screen on
an iPad. And then at the high end new iPad pros with O LED screens, new designs, and new external keyboards that make the iPad pros function more like laptops. And then speaking of laptops, new MacBook Airs coming in
the spring, new thirteen inch and fifteen inch models. So the MacBook Air updated for the first time on the thirteen size after year and a half, the fifteen inch model being updated about after nine months, and the big change there moving from the M two chip to the M three chip that came to the MacBook Pro and the iMac in October.
Chips the driving fulls of conversation so far today, Mark, I'm interested though regulation is going to be fun incentive or for us throughout the show, I'm interested as to.
What's happening over in the EU.
Apple, it seems, is managing perhaps to get a carve out for its I messaging.
Yeah, what we reported earlier this morning our colleagues in Europe is that there is a carve out in the Digital Markets Act where Apple is not going to have to make I Message interoperable as part of these new regulations. This is an overhaul to how iPhones and iPads will function in Europe. But this is super interesting because just a couple of weeks ago, Apple announced it's going to
support OURCS or rich Communications services. This is a Google sponsored or something led by Google, prode by Google that allows I message to text message, or allows different phones iPhones and Android phones to text message on a single protocol or network. Apple's adding that essentially making I Message interoperable. And it really shows that Apple made the right move here. They got ahead of the Digital Markets Act and now Europe is letting them off easy on messaging.
I believe versus a green Markama, thanks so much when it comes to all things Apple. Meanwhile, let's talk a little bit more about regulation in the European Union more broadly, particularly when it comes to AI. Remember, they are racing as of today to reach a deal on the world's first major set of AI rules. Representaors meeting to try
and hammer out what's the EU's AI Act. It's actually the first was proposed all the way back in twenty twenty one, but boy has the technology changed beneath their feet, Blue Moost Jillian Deutsche joining us now to really try and see whether or not we'll get any sort of agreement as of today, because past it it starts to get difficult, right.
Absolutely, you know, this is a really big night and possibly very very late night ear and Brussels as we see negotiators come together and try to finalize this AI Act, which, as you said, Caroline, has been in the work since twenty twenty one. While this technology has been moving so fast, regulators are trying to keep up, and then to be around Generator BI in particular, has really thrown the conversation
into disarray. Today was supposed to be the day that they walk out and easily have some kind of deal, but we're I'm actually sure if they will come out with one. We have lots of EU countries hereorried about uber regulation passibly killing off doabstic competitors to OBANII. I mean you also want makers who say this technology is just too powerful, too risky to not put clear guardrails around.
We're going to be.
Having lots of conversation about the similar sort of discussion happening over in Capitol Hill as well. Really the regulation front and center. Gillian Deutsch, thank you so much. We'll see whether we get a deal later. Let's talk about bench capital right now. Shine a spotlight on it as we do every day. And America's Frontier Fund or AFF, has start to make some of its first startup investments through a new VC firm. AFF, which is backed by like Sir Peter Teel, Eric Schmidt and others, is a
non profit investment platform focused on tech breakthroughs. It deems to be in the national interest now. The nonprofit sponsors VC firms is part of a broader mission to boost tech innovation in the United States. One of those is road Run Adventure Studios. Now, road Runner co founder president Adam Hammer joins us now for more on how you
are looking to allocate money to disruptive research. You're bringing on board, well, your first three companies to join the studio to not only get money, which I think you've raised not only from New Mexico in particular, but you're also looking at basically handholding them through their growth.
Right, that's right, Caroline. So we're on a mission to partner with brilliant scientists, innovators and entrepreneurs to build new disruptive companies in America for America. And to your point, what's unique about our model is we're not only providing capital, we're providing lab space, we're providing product management, talent resources, and we're going to make sure that every company we build is mapped to a first customer.
Let's talk about those first customers. Let's think about the commercialization of these three companies. Where you've got hydrosonics, you've got inadas so, you've got clean tech, you've got biotech, you've also got manufacturing with fab Ai. How soon do you think these companies will find customer product market fit.
So we're on a pathway to make sure that each of these companies have a first customer within the next year. We've built a proprietary method of commercialization here at Roadrunner, we have key partners, both in government and in the private sector that we work closely with to ask what are your hardest problems and how can we be building products and companies to solve those.
What's so interesting is not only your model, but where you're based and how you're raising the money. You want this studio concept to go outside of New Mexico. Right where else would you look? Who have you been having discussions with?
That's right, Karen So, Yes, this movement starts in New Mexico, but it certainly won't end here. We're really privileged to be part of this long tapestry of innovation and history
here in New Mexico and building upon it. But we're headed national next, so looking at places like New Jersey, in North Dakota and Florida, and Tulsa and Texas and taking this to different regions and in other areas where we feel like there's so many untapped resources that we can come in build companies for those local communities and make sure that they have that disruptive potential that's important for American competitiveness.
What's interesting is course we named some of the big tech players who are behind the nonprofit bit side of affrom Thing and Marrig Schmidt, Peter Teel. Of course, this is a for profit element. Have you spoken to them about some of these allocations, about the companies that you're going to be backing.
Well, we certainly have a lot of supporters Eric of course as a friend and mentor whom I used to work for. But what we try to do is make sure that we have partners both in the venture capital community again also in government and in private sector. A lot of the technology we're building is critical tech. It's again really important for the United States to lead on these,
both for national security and for American competitiveness. We're making sure to share those deals, share what we're building, shop at ahead of time with venture capital partners that are friends of ours, and make sure that each of these companies and founders are lined up for success.
You, of course previously managing director head of Strategy over at Schmidt Futures. You've brought on others that have worked at Schmidt Futures, those that have really deep tech knowledge in particular places like Amazon and other key companies. Who else are you bringing on? What expertise you look at at for road Run Adventure Studios.
It's a great question. We're privileged to have a great season team here, particularly folks that have commercialization experience, folks that know how to translate deep tech to actually building products, which is hard work. So a lot of product management experience, a lot of commercialization experience. What talent is core to building companies. Plenty of brilliant ideas die on the vine if they don't have a champion, if they don't have
a CEO behind them. So we're building a talent infrastructure and have a head of talent that's in studio. What we'll be building with is continuing to bring in product managers, continue to bring in scientists, and then folks that can help us really do the business development around deep tech.
Road Run Adventure Studios co founder and president Adam Hammer. Great to have some thoughts with you today, Thank you very much. Indeed, meanwhile, well let's go back to the world of AI, because Google is opening access to Gemini and what is called its largest and most capable AI model.
This is as a search shod and because really.
Trying to catch up here to companies like AI with GPT four.
Now this foot model.
Has three versions, including one that can run directly on smartphones, for example, not just in the data centers. Meanwhile, the application of AI is something that tech leaders, civil society, advocates of academics are all trying to get their hands around in terms of how you regulate it. Actually, on Capital this Hill this week, they're all there and they're discussing AI's implications, for example, for national security and the
potential threats posed by this rapidly advancing tools landing. AI founder CEO Andrew Young is joining us now, you, of course an academic yourself called colsera co founder as well.
What did you make of the.
Statements being made up on Capitol Hill with other leaders of anthropic for example, and where did it land for those.
That are trying to regulate it? What was your message today?
Yea, Damiti just ended twenty minutes ago. I'm actually speaking to you from the Senate Russell Halls where we're just debating this vigorously for two hours. I feel like there's a wide range of opinions, and I think that types about AI doomsday scenario are overblown. When I look at the common arguments or why AI could lead us to do, it comes down to maybe three things one is it could happen. We're not sure how, but it could happen,
and you can't disprove a negative. You can't prove a negative. Second, a is a Peth authority. Some other people think it could happen, so let's worry about that. And then lastly, I think AI is a fantastic productivity too. And so there's some arguments that if someone wants to do something malicious that a productivity to could help them, But I feel it was still falling short in terms of quantifying what really are the realisticrets and just because of productivity
to may help someone do something bad. You know, how should we think about regulating productivity tools?
So you're almost trying to take out, draw out rationalize some of the so called hype around the doom of AI. But at the same time, how do you practically think the US And indeed, as we wait for the E potentially to have some sort of initial on the EUAI Act, how will regulation take form? Do they have to regulate the foundational models or should they only regulate the application of AI?
I think that was a great insight. One thing that's important to note about AI is a general purpose technology, meaning it's useful for so many different things, from copy editing and chatting with people to answering questions the customer support, and so regulating the core technology is very difficult to me. Regulating the core technology makes as much sense as regulating high powered electric motors, which could be used to all
sorts of things. But once you take that electric motor and turn it into a electric vehicle or blender, you can think about whether the rest of the applications the car or the blender. When you take this AI technology and you build it into medical device, let's make sure the medical device is safe. You take AI and put in the self driving car, let's make sure the self
driving cars safe. But I worry that we put owner's regulation on the technology rather than the regulation, then we're slowing down the hundreds of thousand and maybe even more beneficial applications that we could and should be using AI for.
I mean, we turn to you because of the expertise that you not only have at Stanford University as an academic, but also as an innovator in and of yourself and funding innovations with landing AI for example, I'm interested in whether you think innovation thus far is being stifled by pre enting regulation that isn't actually there because companies are having to get on advice, they are turning to consultants, they are trying to sort of ensure that they're building
in the right way ahead of any real rules coming into place.
Yeah, the AI regulation space has been remarkable, with a lot of fears about long term harms, even extinction risk. And today one of the things that was discussed was to ask not what do you think are the risk of something leading to do, but whether your hopes for AI, what do you think are the adser that AI will
need to much better future for everyone? And a lot of us, including me gave Esmans, I think AI has over seventy percent churns of building, letting us build a much better world, and then regulation to hold us back from that would be a problem. One of the things that was discussed a lot was the concern of regulatory capture. And I think there's actually one way to regulate to avoid favoring bag tech companies while cyping innovation from startups, and that is to take a tiered risks approach to
AI would regulate the more risky things. And I think that if you're a social media company with one hundred million users. Well, that has higher disinformation risk than a small message wark with just one hundred users. So let's regulate companies with a bigger reach more that allows us to protect citizens while also avoiding regulatory capture.
Andrew, who's just come out of that meeting. We thank you so much for spending some more time with us. Of course, your landing AI founder, your co founder car Sarah, and of course you're up on Capitol Hill at that AI forum, Andrew, and we thank you meanwhile, Well, that does it for a rather shortened edition of bloombag Technology. We race through our whole most of types of conversations
around AI. Of course, do not miss that all important interview that Ed has with Lisa Su of a m D a little bit later, and.
Don't miss our podcast.
You can get it of course on Apple, Spotify and iHeart this is Bloomberg Technology.