Bloomberg Tech Event Special

Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live from coast to coast with Caroline Hide in New York and Eva Low in San Francisco.

Welcome to a special edition of Bloomberg Tech Live from the Bloomberg Tech event in San Francisco and leaders.

They're from tech, they're from business, and they are gathered here to discuss how they can navigate economic, geopolitical uncertainty and of course multiply the opportunities in today's landscape.

So we're going to talk about everything from robots to data center costs, the race to reach artificial general intelligence, and economic impact.

But look, let's first of all talk about the markets, because look they're down today. Look, we're having our worst day on the NAST that one hundred since mid May. We've lowered it down to the lowest level since the end of May. We're under some pressure, we're bouncing off of our lows, are off by eighteen percent. But there's some anxiety and then that perhaps the market's run up too far too fast, particularly ships.

Yeah, so this is a story about Broadcom and Broadcom's earnings and basically they said that in the current period they will book, sixteen billion dollars of sales in the custom silicon group that we're talking TPUs, we're talking a six. The street went into this with very high expectations. Seventeen point two billion dollars. That's a big drop right on Broadcom, the biggest drop I think since.

January of twenty twenty five.

So let's talk about it, because, hey, right place, right time, we're gonna have a big conversation today, Bloomberg Global Tech Executive Editor Tom Giles, Right place, right time.

Thank you for having me.

Yeah, thank you for being here, and later to say you will have a conversation with Broadcom CEO pock Ten.

That's right, the man of the hour, the man whose results are moving global markets and not in the in the right way. The wait, he hopes, Probably you're if you're a ball right. The point here is, as you said, there was an expectation for revenue forecast for the current quarter at about seventeen point two billion. You come in at sixteen billion dollars. Still a pretty impressive number. Let's be fair. The demand is there, nobody's worried about things

Yeah?

One thing that reading research this morning, including from Rosenblat, my friends at Rosenblatt, we're talking about how now we have even greater visibility. He talked about how we have visibility into twenty twenty eight, much further out than just three months ago. He said, I didn't have that visibility. I have it now and he's still sending bullish signs. So I think in the longer term, the market is going to be encouraged by that kind of visibility further and further out.

And that's on the AI Infrastructure Playbook.

And it's all because we're using jennitor AI so much more.

Who are using it through the likes of Anthropic, the like of op Ai, the likes of groqu Ai.

If you're looking over at SpaceX, these companies are about to go public and we have the anthropic leader here speaking as.

Well, one of the co founders, Daniella Amaday. She's the president, the brother of the CEO. We're excuse me, sister of the CECO. We're going to be asking her about what it's like to have just gone out with your with your secret filing, your confidential filing. What do we have to look forward to with this this IPO, one of the biggest ever.

I just want to set the scene for the Bloombo tech audience fit. Anthropic literally filed confidentially for an IPO Monday.

Am I getting that right?

The world's been wild an illusion last night SpaceX s one A the amended filing. They priced the IPO one hundred and thirty five dollars a share seek Thrace seventy five billion almost one point eight trillion dollar valuation, which we were right about. By the way, must tweeted that it was false. You remember, Tommy, you edited the story.

I mean, just wipe that.

Today's event is astonishing, right, It is astonishing that Daniel amoday will be on stage, that we have investors here who are across the cap tables of all three companies, Anthropic, Open Air SpaceX. We're going to learn something. I mean, this is a difficult environment to try and cover.

Yeah, I think one of the big questions right now is this horse race between open AI and Anthropic. And open AI had really captured the world's imagination for years, since November, that faithful day November twenty twenty two, seen as the leader, seen as the one to beat. In the last six months, roughly, we've seen Anthropic ascent changed.

This is a horse race.

Today Anthropic is seen as a head. Tomorrow it's going to be you know, they're going to really least a new version of chat GPT and it's going to maybe blow your mind, and they're going to be seen as a sendate and it's this back and forth and we're going to see that play out in real time with two potentially back to back trillion dollar IPOs.

And we can play it out in real time with a member from Altimito who's backing all three of these courses.

In terms of the venture.

Capital space, talk about hedging your bets and get at nice hedge behind us as we hedge our bets.

Tom Charles, we so appreciate.

You being with us, Thanks very much.

And look, it's his event that we're here and at the moment alongside Emily Chang. And look, stay with it because Blueleg Tech later today has a roll con President CEOs. We're just talking about hot Tang. What a time to be joining this blue leg tech conference. But also coming up, we've got the perfect person to be discussing some of those market valuations in the private space. CEO Data bricks as is the private company as reaching sky high valuations?

Is it also thinking of a mega tech idea?

Yeah, you're a CEO. You're reading the yes ones right and thinking what do I do? Could this be a sign of an AI bubble? Tom mentioned it? No, According to Cerebra CEO Andrew Fellman, he sat down with Tom last night.

This is.

What is unusual about it I right now is the builders are so far behind the demand it's absurd. We have a backlog of more than twenty five billion dollars of demand that there are none of us, not us, not AMD, not a video that can keep up with the demand that your employees are driving. And that's sort of in a lot of ways, the opposite of a bubble.

Welcome back to our Bloomberg Tech special and look, maybe no surprise for anyone, I think so, But an AI bubble compute needs sas apocalypse. Some of the key themes that will be debated here today at the Bloomberg Tech event. Our next go, Well, you can talk about all of them, isn't the center. Ali Godzia is with us, the CEO and co founder of Data Breaks, one of the.

Most valuable private companies.

That has yet to file confidentially with the SEC as far as we know. We're going to hold back on IPO chat for a minute and ask you about whether this moment of all of these companies looking to access capital in the public markets, is that an anxiety if you could there be oxygen sucked out of Roumans some ways to back some companies such as yourselves.

Well, we're private company, so private invests. They're soon not going to have all these companies to deploy their capital on, and so there's going to be a lot of capital available in private markets. So no, that's not going to be a problem with offer us.

Allie.

I'm really interested in what life's like for you right now as the CEO of a company of Data Breaks is evaluation, but also, like you know, I don't mean this is sort of flippantly like okay, great big private valuation. The company's growing incredibly fast, you know, revenue run rate Caro set up at the top everything that's happening in software right now. What is it that you are dealing

Yeah.

My view is that we're in a very special moment because I'm a contrarian. I believe we actually already have AGI, artificial general intelligence already arrived.

We already have what's your evidence? Yeah?

I ask groups all the time. I ask this question. I ask how many of you believe we have AGI? And roughly ten percent of their audience usually raises their hands. Then I ask, how many of you think that the AIS that you use, the frontier models are smarter than most of the people you work with most of the time. And ninety percent of any crowd I've done this like twenty thirty times raised their hands. Okay, so it's already really plenty smart. We don't need AI to get smarter.

The processes data bricks, that's exactly.

If you could feed that to the AI.

They already could be extremely productive, but no one's really.

Focused on that problem.

Everybody's focused on super intelligence and can we like continue the scaling laws And the problem is if we just could have that context, we.

Would have huge breakthrough.

So that's what database is focused on, you know, that's our only focus is how do we infuse that data context into this product we have called Genie, which then can help answer and automated questions. I think this is the most important question that people should focus on right now.

And we've got plenty of new products.

Like as you're getting ever higher valuations, you're backing it up with new offerings. I think about lik Base, I think about some of the M and a that you've been doing in the market to beef up the product offerings. What's hitting home at the moment?

Where are the customers demanding of you?

Yeah, as you said, like base is, you know, it's everyone wants these databases. People are not paying attention to databases. Everybody's paying attention to software is being commoditized because AI can produce software. But what they don't think about is that all software needs a database. It's a fact. You cannot have a piece of software and it's not using a database and Linke Base is really really really tailoring

Is everyone using an agent now?

Is adoption? Is productive activity there?

Yeah?

Okay, so that depends.

So back to that context question, if we could just get the data to the agents. People are using agents, but they're not using it in its full potential. Maybe we've like tapped into one percent of it because it's not like autonomous agents are running around, you know, working together collaborating with humans and you know, so that's not happening yet. Why is that Because they don't have the context.

So it is happening. But we're just at the.

Case study is real, right, and I'm not questioning whether it is. But that then jensen Han's equation of more compute, more tokens, more revenues, it means that that should put them on a trajectory to more profitability.

Right to many people, it's really simple.

The other thing that Gentleman outlined at the beginning of this week computext Yes, was that it's complete nonsense that software is in trouble because his thesis is that the agents themselves become the ultimate users of that software. I've been finding that concept very hard to understand. You probably are in a place where you can evaluate it early, aren't you.

Yeah, So I think that's going to spot on with both of those. You know, we actually did the calculation. We think in the next nine months, but let's say you're around one year or two years, we're going to have more software being written than in all history of mankind.

You know, no matter how you back into it. This kind of checks out.

Okay, with so much software being written, there's going to be so much demand for all the other things. Like this isn't the ecosystem around software. We happen to do lake Base, which is a database, and you know we're seeing huge amounts in these database, but there are other ones around software.

So yes, it's this is just continued.

And therefore I go back to how we started this conversation. As you keep on scaling, as you keep driving innovation, do you need more private capital?

Would you look to go for public capital at this moment?

Yeah, I mean we are always interested and we're always talking to investors, and you know, I'm sure we're going to do more of that. We will also be a public company.

I just think, but why also, why, like if the private markets will keep going with you?

Yeah, what's your impetus figuring?

Yeah, because you know, at our scale, you know, I think we raised twenty billion dollars. At these scales, we're almost trying to create a market transaction mechanism for our employees, which you know, it's ten thousand right now, but if you take all of them, the prior employees, it's probably fourteen thousand or so, you know, So there is a thing that can do that. It's called the public markets. So I just think this is a terrible year for you know, to go public. We're going to just so

So I did not go through the S one filing one by word.

It's got other things to do.

Yep, Ali goes the CEO data breaks a busy guy back on Bloomberg Tech.

Thank you very much.

We're live from the Bloomberg Tech event, where one of the biggest questions facing investors but also founders alike is what comes next IPO market, the AI boom, how it's reshaping technologies landscape? Joining us right now is a poor Bagarawil, partner at L Timater Capital. L Timater, Let me just set the scene right so I also understand the context view of the world we're in right now is crazy

You know, I think at the highest level, I think you nailed it. It's like we ai has gone from being a technology product cycle to one of the largest capital formation cycles. Right on one side, you've got the pigs and shovels. You know, this is the compute, memory, optics, networking. You go down the list they are selling these products to to let's call them the minors.

These are the labs.

Google just raised eighty four billion dollars opening eye. It's a historicallye one hundred and twenty two billion anthropic of course, and you know, you look at the same week and video just announce an eighty billion dollar stock buyback program ske High next same thing, eight billion dollars of stock retired with more dividends coming.

Those are like sort of contradictions in the function of the market.

They're opposite.

It's and that's the line that I wanted to highlight. On one side, you've got the folks who are helping you scale AI. These are receiving the capex, the others who are spending the capex.

And I think that's the line that's.

The biggest mental bottle I want to leave the folks with, which is, as you look at these businesses, are you on the side of receiving the capex, which would be the compute layer, of the energy layer, the memory layer of the networking layer, or are you on the side of spending. And I think that's the biggest divide in AI right now.

But at the moment, we have seen rocket ship when it comes to AI infrastructure and those who've been receiving all the capital expenditure, and then people just so desirous to help fund those that are going to be out there and raising it. Whether it be open AI, whether it be SpaceX, whether it be anthropic, whether it be

You know, I think there's this narrative of companies doing a binary thing. Oh, you're the consumer AI company, or you're the enterprise AI company, you're the space AI company. I think I think the reality is a lot more multifaceted.

Right, Let's take Opening I for example.

I think the product, the company's mission is getting AI to the market holistically across consumer. You've got just under a billion users on chat GPT. On enterprise they've now got five million codex users. That was doing really well.

Can actually as you about that, you know that there's so many directions we could go. But the space business of launch and Starlink two trillion in the TAM Get it Enterprise AI. You've kind of answered that, but stealthily in there they are.

Becoming a hyperscaler.

Right, if you think about the ethropic arrangement, they're almost hedging by saying in the interim, we're really good at building data center.

Well, I think I think I would say it's a Switzerland, right, it's a Switzerland approach.

You know, for a long time the first person to say that to me.

So for the longest time we were holding re breath for hey, that you did this deal with Cursor, and the big question was, well, a lot of Cursor revenues come from the great anthropic models. Then they got entropic on the platform. Then obviously they're building their own models. And so I think of the XAI business as the Switzerland business. We're now selling compute, we will sell models, we'll have a coding product, we'll have other products down

Look, we love in the media and more broadly to be putting anthropic and open AI in.

Some race against each other. But do you have as a private market investor.

Any pause that maybe there isn't going to be the demand for this rule of public offerings, then in many ways it's going to be liquidity to your ultimism.

Look, I think for the longest time, we've had a large part of the market waiting finding ways to get access to the biggest super cycle in AI right now, and I think that that moment has arrived.

IPOs are cyclical, as we know.

You know, the last big cycle was four or five years ago in twenty twenty one, and based on everything we know, there's a lot of demand for these products as they go out in terms of the demand for

You are, you're teaching at Stamford, and you've kindly invited me to come and check out a class, and I will, and one of the questions that you pose in a series of like guest speakers, right, you know everyone in industry and your fellow investors on the cap table. You asked them like, what's one idea or long one idea? You're sure I explain that, But why do you think that's a useful mechanism for understanding the world?

Well, I like to hold the speakers to what they say.

I'm going to ask them the question next year and have a scorecard of what happened to their long short picks. It's my favorite game to play with founders. I learn a lot as as founders pick their most optimistic idea, they're their most bearish idea.

And I'll give you the theme.

You know.

The theme in this class was more than half of the speakers were long the let's call them the fix and shovels providers compute most common theme. Energy was the second most common theme that is ultimately the bottleneck at scale. The most common theme on the short side was was folks who are not innovating, incumbents were not innovating.

You know, it's a fun time and.

Cos are you short.

Or what are you not looking at? In a startup space?

As you're thinking about a wall of liquidity coming to altimiter, what would you not like to invest in very quickly.

Well, I'm an optimist by trade, by profession, in my blood, so I'm very optimisticing on a lot of things going on. I think the simple mental model that I have is if there's a business that gets hurt by the scaling laws, it's one of the scaling laws. The scaling laws are if you provide more compute, more resources, more data, more algorithms,

If we could speak to you for hours, it's so great to have you here at Bloomberg Tech. Above of alcohol, forces, of altimeter capital, fascinating conversation.

With Welcome back to a special edition of Bloomberg Tech.

We're live from the Bloomberg Tech event in San Francisco on Ed Ludlow.

That's Caroline Hyde.

I'm here.

It's beautiful, but look what's not beautiful is a market a little bit today. Let's take a look at today's big number three hundred billion dollars head that is roughly how much market value we've just lost the Broadcast couch after the shares plunged today following the company's earned his release last night. Look, we were covering it live for

But Hot Tan, he's speaking of this evently.

Yeah, and you know he is going to try and give something longer term. But this was about incredibly high expectations of what's happening in the AI infrastructure build out cycle.

Let's get to the software space.

OCTOR delivered a very strong start for the year by beating first for expectations last week, but then raised its full year guidance basically across the board, joining us to discuss basically a platform shift that's happening, but also emerging threats from AI is octor CEO co founder Todd McKinnon. You know it was so interesting because you know, at the end of the day, numbers and numbers, and you had the confidence to raise on the outlook.

There must be a reason why.

You know, earlier in the show we're talking with Data Bricks and Ali Goodsey about how real.

Is at the deployment of agents.

You must know the answers to that act was founded in the shift of cloud computing and this new shift we're in, the shift to AI and AI agents is bigger than anything since the Internet, possibly bigger. And so what actor's benefiting from is all this change and all this technological evolution. It makes identity even more important than ever. Are these applicats, all these services, and then you layer on top of that a new product cycle for OCTA.

What makes your offering unique different from other peers? There are there many want to be the governance rules, the protection layer.

For this port.

I think it may surprise you. But it's the focus. We're focusing on the connections, the connections between AI agents and all the databases and data sources and applications they need to be most effective, and that connectivity that is very important to the functionality of the agents. But it's also something that's very risky from a security perspective. Yeah, the more you connect to your agents, the more risk of information leaking, the agent going rogue and you having

Earlier this week, somebody called Jensen Wang when on stage and in front of it camera and said that the narrative around software is complete nonsense, and he made the argument that for legacy software, agents will become the end users, and there are more agents than people in the world, and your stock, like everyone else is in your space, went absolutely bananas.

Be honest with me, God, is.

That helpful to have Gensen Wong Way in like that or would you just wish you didn't?

Well, if you zoom out and look what's happening. I mentioned earlier the transition of the cloud fifteen years ago. The transition to AI is similar in that every layer of the stack is being reimagined and reinvented, from the hardware layer, to the infrastructure layer, to the platform layer, to the development tool layer, to the application layer. And so every vendor has an important priority to make sure they reinvent themselves with these agentic capabilities and these capabilities

What does it mean for your own workforce, for your own human capital?

Are you're needing as much of it?

They have to be more effective and more productive, and the tools are there to do that, whether it's clog code or whether it's the latest marketing tool or support tool. They have to be more effective and they have to deliver value.

Keeps the same amount of people working.

Well.

This is where I disagree with a lot of people. I think in five years Octa is going to have far more software engineers that we have now, and you want them to be reproducting, you want them to be generating tokens. And that's because it's a little bit of a trick answer, because the reason we'll have more is not because they won't be more efficient. It's because there's just so much more capability to build. There's so much demand for software, and there's so much power of the automation.

We're very excited about this.

So the Bloombo tech audience is in industry, it is sophisticated, but lots of people this is so abstract.

Still.

The thing that I always get frustrated with with an agent is that I just want it to act. So if you take this as a random case study, but like my flight gets canceled, I have to phone a human still, even within Bloomberg, try and.

Get that resolved.

But there is a world that you're pitching where they have access to my credit card, the flight information.

It just happened.

These are the connections I'm talking about the connections of the data that has to be secure.

What is the barrier in the world right now? You know, Corporate America, companies around the planet, that is preventing this just happening.

The barrier is people thinking about models, and we herald model advancements. The reality is is that the models are out of capability now, far surpassed in our ability to simply connect the systems together and get practical argentic applications built. But that's great because there's a lot of smart people in the world working on connecting them, and we're focused on making sure they're connected securely.

And that's why the future is very.

That's what I meant though, like are we worried about how secure that potential transaction is or not?

We have to be always worried about security.

You're connecting sensitive data and automating it in new ways and there's always risk in that, and that's why I think our solutions are resonating so much, just as practical focus on we want things to be more automated. We want these agents to have more capability. They need more data. How do we pragmatically do that in a secure and manageable way. And that's what oktafer Ai agents does.

And so this talk of SaaS pocalypse, I.

Think it's completely over bloom. It's completely over bloom. I think there will be SaaS companies that don't embed these capabilities in their offerings. Just like in the revolution and the move to the cloud, there were companies that were left behind and became legacy vendors and Resolve bought up by Oracle. That'll happen too, but there all also be mini vendors that make the transition and thrive in the future.

And that's why you're proving it up to CEO co found and Tom McKinnon. It's great to have it here at Bloomberg Tech. The live event in San Francisco, and coming up we have the personification of the San Francisco economy. We've got the San Francisco for Bed president Mary Daily joining us live. We're going to discuss AI's economic impact on the people, on the productivity, the risks that are getting perhaps overlooked god Rails.

Maybe needed this is BLUEBG Tech.

We are live from the Bloomberg Tech event in the heart of San Francisco, and look, the debate is rich around AI's economic disruption.

Is it growing more intense?

Some see the technology that can unlock enormous gains and productivity and growth, but others that they warn of disruption, of unintended consequences. And we want to try and understand the sort of messy middle of all of this with Mary Daily, President of Federal Reserve.

Bank of San Francisco.

Mary Daily, extraordinary the data that you now have to lean upon, trying to understand what's fact, what's fiction, what's utopia, what sensation? Who do you go to field field dates on whether productivity is working.

I thought of the businesses who were using the technology, because you can always encounter enthusiasts or doom sayers, but it's really the people in the middle, as you said, who are using that technology thinking about it, and I've seen tremendous interest in it it last year and now I'm seeing tremendous investment in it, thinking about how do they train their workforces to be AI ready, how do they think about what AI can do, not just in the back office but.

In the front of a house of operations.

And we're seeing this in small businesses, medium and large, in global companies and more regional ones, and importantly in everything from agriculture to machining and building things to services. And I think that's really the place we haven't seen widespread productivity gains yet. The ROI is still to be developed, but I'm definitely seeing the enthusiasm and it's picked up tremendously in the last year.

We haven't seen the productivity gains yet. You know, you're being very clear on that. As you remember, I asked you over and over again for an hour, please show me the productivity gains. But in the economic data, whichever set of data you want to look at, do you see an impact from AI negative or positive?

It's really hard to take.

We have had productivity growth that's been outside of the historical norm, and I think that's a positive for the US economy.

Everyone wants to say that's AI.

What I think of it is as sure, it's possible that businesses are looking for cost savings and they hire fewer workers than they do just as much because they're using an LA assistant to help. But we just haven't heard from businesses that they're seeing transformative ongoing productivity gains yet and they want to always underscore yet. And so then I said, well, what's the timeframe and they said next year, year after. Because what we know is it isn't just about getting a model and using it for

But I'm pretty bullish. I see the possibilities.

And I'm hearing more and more that people are seeing early rewards and really recognizing that next year is the litmus test.

But this is an interesting kind of phrase today, putting aside the slight dip in the market, the exuberance that we have seen in financial markets to want to back these companies, and we're about to get more public companies coming, more liquidity.

More money.

Is that in and of itself a financial stability issue.

You worried about the market's rioting.

So high.

You remember, you know who's doing most of this investment, the mag seven who's really there. This is actually something they can do and fund, and their enthusiasm is real. They see what's possible. But I don't think that we should think, oh, there's financial stability concerns just because the market's gone up. It could go up or down as it has in the past, but a financial stability issue would mean it's spread to the banks, it's spread to

The things they're.

Doing president daily inflation is still the biggest risk.

And you know those are not my words.

We heard it, you know, all week long at the Bloomberg Credit Forum, for example. One of the things that you and I have discussed in the past is is the massive CAPEX commitment build out of data center in conjunction with a bottleneck in some core areas like memory inflationary or is it disinflationary? You know, that's the thesis that like a utility of pgene would argue disinflationary because the big guys are buying and aggregate. I still don't understand where we are with that.

It's a timing issue in my judgment that you know, in the beginning of course, when companies want to invest in big construction projects a lot of electro electricity demand, then the companies that are providing those things or areas that are providing those things are going to see competition for the limited amount of services they have. But what they're building creates the infrastructure. The data centers create the infrastructure.

Or if the big.

Guys come in as you just said and help with electrical plants that help with electricity generation, that eventually can help with the prices of those things.

Don't hear it now, but you just have to think.

About the timing.

And one of the things is really important in policy making is that we not assume we know. We actually look for the evidence of what are we seeing in prices today, what are we seeing in what is the forecast of prices tomorrow? And then how do we think about policy. So right now I'm focused on you know, other energy prices, oil prices, and food prices are driving

The infrationary data must be fascinating here in San Francisco. When I think about all these companies potentially going competent, well, that means to the employee base, well, that means that your health price and the ability to be.

Able to buy yet more readA state here. What it means for the cost of labor as well. Is there an.

Infrasery pressure that you're seeing in San Francisis I've lived through. So I moved to San Francisco in nineteen ninety six and then that we have the dot com and I know what it feels like to not be able to rent a place that's affordable because the people who are making milliony more orders of magnitude. And I was in a position where that's manageable. But that's what's happening, is people feel like they're getting crowded out because other things

But the data bubble, is there a risk that we're in not saying, you know, the.

Dot com was very different than the AI boom, and so I just want to you know, there's a lot there that's already being put into businesses and it's very pervasive.

It's not just the dot com.

So I don't jump to the conclusion that if it has similarities to the nineties, it's going to be the.

Nine Well, if I may presented, you went out and did some of the most important work in that era of how the advent of the internet would change the economy. Look, so you've kind of established where we sit right now. Inflation continues to rise, how like or unlikely would that make a rate cut in twenty twenty six? How do you tie the two together from this juncture onward.

You know, I think one of the questions I get asked regularly is what's the path.

For the rates going forward?

Yeah, And the answer I give, because this is how I really think we have to think about it, is we don't know how the economy is going to play out. We have, as we've been talking about, this tremendous possibility with Ai, but we have the same time the war in Iran, that is with an uncertain end, which has pushed oil prices up and fertilizer prices which have filtered into food prices. And right now those are fairly contained.

But I think give a.

More forward guidance about what's possible could be misguiding in the end, because we just have to wait for the economy revolve. Everybody wants to resolve the uncertainty today, but I think that's a mistake because it will close off our mind about what we really have to look at the inflation risk possibility, but also the possibility of the war end. Oil prices come back down and we're back to the underlying dynamics which some of the positives of AI we've been talking about.

Can I ask you about the labor market as well, because you've tried to bring this transparency of how you're thinking about things with your blog, for example, and one of the really interesting ones that I was reading and capture my attention was the idea that we've got zero labor growth now immigrations changed the way in which demographics change. Are you feeling like we've seen some improvement, some resilience in the labor.

Market again, and will that hold?

Has it firmed?

Yeah, you know, I.

Think that's too early to stay firmed. I think we're you know, there's always statistical air, so you can bounce around from month to month. But if you you know, I was one of the people who policymakers who were a little worried about the labor market at the end of last year were very supportive of the cuts we took to stabilize conditions there.

So relative to that point.

I think this is we've really stabilized, and I'm starting to see businesses feel a little more cautiously optimistic, which we'll feed through to hiring. But they're not being you know, they're not just running out.

To hire people. They are right, I can get an agent.

They're interrogating how much AI can do for them before they hire. And you know, regularly we talk to our businesses and they say, we don't want to hire a bunch of people. Find out AI can do certain things, and we did a different set of skills, so we want to wait. We want to be patient on our hiring and make sure we're not over hiring, because you know, if you ever go through a period of time where a business has to lay workers off, it's a painful

So that caution will be with us for a bit.

We are live on Bloomberg Television and Bloomberg Radio. We're in San Francisco and we're at the Bloomberg Tech event and we're speaking with San Francisco that Marry Daily reset a little bit. But if I may it's the first opportunity we've had to ask you. Have you spoken to Chairman wa Wash about how he sees the FED evolving about changes to the institution and if you may fold in the context of your district San Francisco Fed. Yes, much more than that and your role going forward.

Sure, absolutely so.

You know, I think what we really want when any new chair comes in, and what we want from all of our leaders of FEDERALI serve banks and all of our governors, is that you're thinking constantly about how can the FED be better? How can it better shave the American people? How can we do our work more efficiently, more effectively, and more resiliently. You know, ultimately everything we

About how we spend taxpayer dollars.

So with those two things in mind, you know, I mentioned I joined the FED back in the nineties. So I joined the FED in the nineties and we had check processing. Remember checks, we had check processing.

I stopped the right legs.

Everywhere, everywhere in the everywhere.

We had a location, we had people who process checks. But then check demand started to fall, and so we consolidated those activities into a few locations. And that level of modernizing, constantly thinking about how can you do better?

Is what I see now.

So what is the chair's equivalent of that?

Well, just joined.

So I'm going to give him the right time he has to announce that. He's talked about making sure he's holding onto that tradition, and he comes in with a lot of ideas. But you know what I've heard him say again and again, which I really appreciate because all he's the fifth chair I've worked with.

All of the chairs I've worked with have the same basic compass.

It is to do our best work for the American people and work with all the individuals who are earnestly doing their work in the FED to do it well.

And I see that in chair worsh that earnest work within the FED. How much of that is being multignized to use adult AI.

How hard or easy is it at the moment when you're such a regulated the institution in and of yourself.

Well, we're careful like all regulated institutions, and importantly like all businesses. Businesses, and when I talk to businesses, the last thing they want to do is a huge risk that destroy their shareholders. They're the value of their company. The same is true for us. Good fiduciary stewarts of public trust and good fiduciary stuarts of public funds, which means we're always driving to adopt new technology to do our work more efficiently, but we recognize we have to

It's made by people making judgments not.

Only about models and rules, but also about the lived experiences of people across our country.

Very quickly, before the show ends, what are you seeing in credit? That's a big story for us in how.

Data centers are financed. For some it's very worrying.

Well, you know, we're watching that carefully. I watched that carefully. What we do see is that there's a lot of there's those companies investing a lot of their own resources in those So it's something to keep our eye on. But at this point, you know, again, if you stack rank the things that are worrying today, I'd say getting inflation back to target, getting Americans the relief they deserve that we've been working on for quite a while.

That's my number one priority.

I'm Francisco President, Mary Daddy.

You've been very generous of your time, and we always cover such a broad spectrum of topics. Really grateful to have you here with us in San Francisco at the bloombo Tech event.

Yeah, what an event it has been, What an event it continues to do.

We're just getting started, and I know that does there's addition to Bloomberg.

Tech for the TV show. Yeah, but you've.

Got to stay tuned.

The rest of Bloomberg Tech event today has some phenomenal conversation.

Just coming up.

I'm lucky enough to be speaking again with the San Francisco Fed Chair of course, Mary Day.

But you look for the lineup that what we've got coming up.

Yeah, and I'm going to be speaking to Trey Stevens, partner at Founders Fun, chairman of Andreil but Founder's Fund is a high single digit percent stakeholder of SpaceX. Don't forget SpaceX's IPO pricing June eleven.

Yeah, that's a big deal.

Recap the show, a lot of really great conversations on the podcast. You guys know where it's at online, Spotify, iHeart, and Apple and all the Bloomberg platforms as well.

Stay tuned. This is Bloomberg Tech.