From Mahard where Innovation, money and power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
I'm Caroline Heine blombergsweltad quarters in New York and I met Ludlow in San Francisco.
This is Bloomberg Technology coming up.
We'll have full market coverage ahead. Inflation, those worries they call the rate hike bets come down? Will this fuel still the tech sector rally?
As apet gets underway in San Francisco, tech executives look to meet with China's g will bring you the detail.
And Apple's largest assembler of iPhones, well, it warns of a sales drop as demand concerns linger in the smartphone market.
There's a lot happening in the show today, and the stocks behind me kind of reflect the stories we'll cover. We're going to look at fox Conn in its earnings, the main contract manufacturer that assembles the iPhone, a worrying outlook, but Apple actually up moving higher. Grinder had strong earnings to stock up significantly. We will speak to the Grinder CEO,
and then finally Alphabet, parent company of Google. We're going to go to our reporter to talk about what YouTube's doing in the context of AI generated content and content moderation. In terms of the stock story, there is one name that is a big story in its own right, and that is in Vidia Video Shares around one and a half percent in the session, but currently up for a tenth straight day, and if they close highering in the green, that ten day win streak matches the record that in
Vidia set in December of twenty sixteen. It is the best performing stock on the S and P five hundred year to date. It is the best performing stock on the Nasdaq one hundred year to date, and its gain is almost two hundred and forty percent year to date. The story in the near term has been around AI right in their products announcements, but also in this session getting a boost from that call of an expected inflation print is paused.
The so called Magnificent seven, those key stocks that are just driven some of the rally throughout the year. Is it still times you're buying into them? Well, please to welcome the perfect guests Leafetangla Investment CIO Nancy Tangla, who I think has some key thoughts on really whether there's still fuel to the fire of the tech rally. Is there when you're getting these sorts of information prints.
Oh absolutely, I'm in the market loves it.
But let's also not forget that these stocks have been delivering all the way through the rate hype regime from the Fed, and then again with inflation higher. We have argued that inflation comes down symmetrically, but not necessarily literally so linearly. So I think that this is a good number, not a huge surprise, and we'll see what happens in December. But you know, Caroline, I wrote a piece that this market is analogous to nineteen ninety, where we had inflation above.
Three percent for the entire.
Decade, yields between five and eight percent on average for the entire decade, a war, a recession credit like we have now. And then in addition to that, the indices we're up, you know, four hundred percent over four hundred percent for the Dow in S ANDP and eight over eight hundred percent for the Nasdaq.
The nancy. To be clear in your mind, have we hit peak rate.
Ed?
I think so, But that doesn't mean we're not going to continue to see volatility. I think you know, we've never had this much supply come on so quickly, and so I think we'll continue to get you know, the market will react to bits of news. We'll see what the PPI says, But in general, I think we're kind of.
There, going back to that nineties reminiscing and perhaps echo that we currently see in the current market. Nancy, is it that therefore we can continue to run on the same sort of seven names that the market has loved us far, or do you need to get broader, wider and where you anticipate some of the gains are going to come from.
I do think you need to get wider, Caroline. I mean I think we need industrials to work again, maybe energy. I think financials have to do some of the heavy lifting. But in general, if you look at the Magnificent Seven, this is not my work, it's Jason Trennard said strateigis,
and he separated it out as its own sector. Margins are growing faster, earnings and revenue growth growing faster than the rest of market and rest of technology, and so I think you have to give them the tip of the hat and say I may not want to own all of them, but I want to own some of them. And I need to have them in my portfolio because the tailwinds, the secular tailwinds, are at their back.
Speaking of tailwinds, Nancy, you heard me talk about Nvidia at the top of the program, up for a tenth straight day, matching it's record run that it's set in twenty sixteen. It is the best performing stock on both S and B five hundred and as that one hundred. What do you make of that run? What is your attitude towards it?
I wished I owned it.
It was never cheap enough for us.
It was for about twenty minutes on one day, and then we just missed it. I think importantly, what you know from last quarters earnings is that the multiple actually went down despite the stock running up.
So I think this is one of those stocks like.
Amazon a decade ago, like Walmart two or three decades ago, that you just step aside and let it run and hopefully you own it. We owned Broadcom, so we you know, we've had some of the benefits of AI chip and cloud computing. We own a lot of the Magnificent seven, we just don't own that name. I think if you own it, you keep it and let it run, and if you don't own it.
You wait on all of these stocks for pullbacks.
And what would be the spalk of a pullback do you think, Nancie, Well, I.
Think we got one in October, so in September, I think if we and that was based on you know, the FED saying they were going to be higher for longer, But I would argue in the medium term that doesn't matter because we've had much higher rates and strong investment performance, particularly from technology, and then I think if we get conflicting data and we just continue to hear the FED speak, the market is still reacting to that on a daily basis.
But I would point out that the reason I think you want to own these stocks for the long term is that in periods of tight labor markets, and they're historically been three or four but one again that's mostly analogous, which is around the eighties nineties, these stocks, the spend in technology has gone up, and then these stocks have outperformed.
So I don't think the trade's over.
Someday it will be, but I think for now you do want to wait for volatility, maybe a week earnings report, a FED another FED speak period where we get you know, some conflicting data like we did from pal meeting.
He was a little more dubvish.
Last speech he was less so, and the market took into heart those are your times.
That's the time when you stepped in.
Stepping in two well and in videos we're just hearing from ed is at more than two hundred percent. Microsoft just hugely outperformed, so has the likes of even Meta in this year of efficiency. Nancy, can you talk about if there's any consistency on what you're seeing in some of the companies that you like. Is there anything that makes them stand out uniquely that therefore once you make to add because I know you take individual names and bring them to us.
Yeah, so I'm happy to do that.
So I think I don't know that you would necessarily recall this, but we were adding to the group blast fall. There was not a good piece of news to be found, but they were slowly and quietly delivering strong earnings growth. So the names that are in our twelve Best Ideas portfolio are Microsoft, strong management team. As you'res taking share, they've got they're going to monetize AI. We're seeing them cram it into every nick and cranny of offices and
every other aspect of their business. The deal went through with Activision, they launched three sixty five co pilot. I think you're going to see this company continue to take share and dominate.
And it's been a you know, it's an obvious.
Name, but I don't think you want to walk away from it at these levels. Adobe is the unsung hero of AI. It's also a good management team. That is our theme. We paid very close attention to management. I think that's the name you want to buy on pullbacks. It's a little rich right now service now I've talked about before on your program. Bill McDermott delivered a beat beaten Rays last quarter, and he's a great salesman and
he knows how to run the business. They are taking it spend away from other providers because they're in the sweet spot of navigating cloud computing and generative AI computing.
And then Amazon.
I think Tony Jasse got Tim cooked when he took over. I bought Apple after Tim Cook was heralded as no Steve Jobs, and that was in about twenty twelve to twenty thirteen. We were adding to our Amazon last year. I think you can still buy it here. He has figured it out. He's cut costs, and we're paying very close attention to the healthcare portion of their business. But the cloud business is still growing remarkably. I think that's the name you just buy and you put it away.
Nancy, you didn't mention Mark Zuckerberg. You mentioned everyone else. Meta is a magnificant, magnificent seven stock. Do you hold Zuckerberg in the same leadership bracket as those No, So.
We owned it many years ago.
We described ourselves as reluctant shareholders. We sold it at levels at about current levels and a little bit higher.
We missed getting back in.
But as with Google, though, we do own some of Google, not in our twelve Best Ideas portfolios, as the names I just discussed were. But we don't like the two share class. It's really an advertising business. I think the metamist step and the spending at both companies needs to be rained in. With Google, we're a little more optimistic because we like Ruth Kretts in the new role as president, but I know you can still make money on it.
I just think there's better places and more interesting places to be, and I don't like I haven't really been thrilled with the leadership. Even though the stock price is delivered and they cut costs.
That's great. You can only do that for so long.
Nancy. We always love you coming here giving us our straight talk. Talking about the individual names as well, Nancy Tenglo Investments. Always great to catch up with you. Thank you very much. Indeed. Meanwhile, speaking of CEOs in San Francisco, all eyes are on APEC has lead us on the world of tech attend hopeful in fact for an audience with one China President Xi Jinping. In fact, CEOs of Microsoft City, Tesla, they're all looking to meet with the president.
She and according to sources, he's even expected to hold a dinner with some executives for many corporations that the agenda is simple. They're ready to get back to business in China.
End and part of the agenda for Jijingping to meet with President Biden is to announce an agreement that would see Beijing crackdown on the manufacturer and export of fentanyl. According to sources, sentinal crisis is something I discussed with San Francisco Mayor London Breed have listen.
Just to work with the US and to ensure that the resources that are being sent out of China that come into either the US or Mexico are cut off to the fullest extent possible, that we work together in order to ensure that this deadly poison that is killing people in San Francisco in significant numbers and all over the country, that we're able to combat this to stop it.
So San Francisco, Carrie becomes the center of the US China relationship this week, right the social issue of fentanyl, the supply chain for that that we discussed, and then all of these CEOs who basically say, let's get back to good terms with China.
And it's interesting who might likely be there, And of course we know Tesla has key supply chain issue with Shanghaim, particularly in China. More broadly, what was interesting sort of who's not there? And I know Tim Cook's just been to China himself. Notable that as like a California executive, not their metal we understand, of course, stunning to sell their VR equipment in China. Interesting that Zucker isn't there either.
Yeah, and AI again is going to be a talking point because while there's some kind of move forward on the relationship, in the background, used to have US technology export curves on chips to China that have directly impacted the AI supply chain. So a big week ahead.
I'm sure it feels pretty busy where you are. Meanwhile, coming up, look Iphonemaker on Hi public arm of Fox gone growing concerns, sales may drop in the current quarter. We'll have more on its tep it out look. That's next for the look. And you're looking at some particular movers.
Yeah. Fiska, the ev maker, down eighteen point two percent over the last couple of days, twenty four percent in this session, delayed its ten Q It has got all kind of material weakness and accounting issues, revenues missing estimates, and basically it's behind schedule on delivering its contract manufactured evs a name we continue to track. This is Bloom by Technology. Okay, time for talking tech and first up see Southeast Asia's biggest internet company is reeling from profit loss.
In its third quarter, the single war based company posted a net loss of one hundred and forty nine million dollars, compared with a profit of three hundred and twenty two million dollars the previous quarter. The e commerce growth in the region has been pressured by macro conditions and intense competition in the sector, and Snap is reportedly teaming up with Amazon to let its users shop for products directly
from ads on the Snapchat app. Shares arising after The Information reported that the deals being launched for US customers. This comes after last week's news of a similar deal with Meta for shopping on Facebook and Instagram. Plus Huawei and Jiaomia leading the resurgence in China's smartphone market. Phone sales are up eleven percent in the first four weeks of last month compared to the same period a year ago,
according to Counterpoint Research. The domestic brands picked up the slack, while Apple's latest set of phones had an unusually muted debut in China so far.
Carol, and let's stick on that muted demand for some of Apple's iPhones and what that means for its key manufacturer, Honheim. It's actually been revising its outlook after profits they'd beat expectations, but revenue still under pressure. Remember this is the public arm of Fox Cone and it's been warning that sales may four. This demand for the iPhone remains come in flux. Frankly to say that we're joined by Mandinkxing Bloomberg Intelligence
senior technology analysts. And perhaps not that surprising given that we know that there's sort of a cultural backlash somewhat against Apple use of the phones in government as well. But how much is it starting to be reflected in the supply chain?
Well, so think of you know, how these companies are connected TSMC and Fox Cone and if you see weakness, you know, with TSMC calling out PCs and smartphones continuing to be weak, it's not a surprise that, you know, Fox can't did the same. End at the end of the day, the consumer electronics market, we don't know if it is bottom. Everyone keeps talking about it. With PCs, we saw a couple of data points this quarter that
suggested a bottom, but we don't know that yet. And I think this is a confirmation that consumer maybe week, you know, in the first half of next year as well.
A lot of this man deep is like reading the tea leaves of third party data and suppliers.
Right.
Go back to Apple's earnings and Tim Cook talked about when he visited the country, they claim to have the top four smartphone handsets in a market that they saw as contracting, and you kind of draw the conclusion. What does that mean you're taking market share? What do we wait for to know what's really happening with Apple on the data side.
I mean, look with Apple, clearly you know the iPhone fifteen isn't going to be a big upgrade cycle, That's what it seems like. And everyone is talking about what they can do at the chip level to really drive that, you know, gen AI kind of adoption at the edge level. But look for fox Con, it's more about what else can they diversify with? And there is demand for AI servers. In fact, in video when they are making these Genei servers, they're having TSMC make the chip and fox Con is
the assembler. So clearly there is demand when it comes to AI servers. I think it's just the consumer side is continues to be weak, and these companies, all of them TSMC, fox Con, have a pretty sizeable consumer explosure. In fact, I would say it's almost sixty percent of their business, whereas AI servers is still less than five percent of their overall footprint.
All right, man, deep seeking it to Bloomberg Intelligence, Thank.
You shares a grinder absolutely popping. Today. Let's talk about the social the dating app as it raises its soliet guidance, a third quarter revenue that's higher than thirty nine percent year every year. But now I'm on the CEO of Kind George Harrison. George is great to have you on the show, and just this growth is managing to be what's driving it at the moment. Is it all about subscriptions.
It's almost all coming from subscriptions and add on products. We did have a great quarter growth, third nine percent year of a year, and a lot of it had to do with us launching a weekly pricing option. Users have been asking for a lower priced tier that they could use to entry point into the product on a paying basis, and we launched that you know, earlier this year, and the results of that have been really really positive, So really happy about that. Now Grinder is really under monetized.
Our conversion to paying customers is much lower than our peer set, partly because we've never really focused on that. It was all about offering a lot of free features versus paying features. And now as we transition to offering more paying features, I think we're seeing really positive results and there's a lot more room to continue with that because obviously, where like half the pair penetration that somewhere up years are so.
Let's talk about thirteen and a half million average monthly users. Then if you're managing to continue to grow, do you spend do you invest? Is it more about marketing? Is it about branding? Is about more actually the underlying product and perhaps into weaving AI within it.
Yeah, almost all of our investments are around people to build technology and product because we have a ton of opportunity to create new features that yous want. For example, right now we're working on teleport, which is going to let users show themselves in different market from the one they're in today, something that you have been asking for for a long time. We spend virtually no money on marketing.
It's like less than one percent of our revenue this year, and we'll expect that number to go up a little bit as we focus on our brand to tell our story a little better, but it's going to be pretty minor.
We don't do a pair acquisition. We're really fortunate that it's the product and the fact that people already know about us that drives that use a growth are My growth is also really strong and has been for a long time now, but it's all driven by word of mouth and by top of funnel user products that we build, like albums for exams that went live last year. We added video to albums this year, and you know, users
have loved that. Over a billion albums shared in less than a year, which is really fantastic.
So, George, forty percent top line growth, twenty percent paying user growth, and then eight percent active user growth. What should that tell us about who's using the platform and how they're using it?
Yeah, so, I mean, I think it's telling you that as we launch more features that people want to pay for, a larger percentage of people will convert to becoming pain customers. And we have a lot more to do on that over the next couple of years. And then we also know that younger people come back to the platform. Right, Unlike a lot of other social products that have been replaced by one platform by the next, etc. Right, TikTok replacing Instagram and so forth, that hasn't really happened in
our space. The users have been coming back to Grinder as they've kind of become eighteen plus, in part because they know that that's where everybody else in that community is. And so the community aspect of brind It really helps with that, and that something that we want to continue to lean in on now. At the same time, we do see a lot of opportunity with what i'd call older users. Now that's not that much older. We're talking
about thirty to forty year olds. That cohort of gay men in particular wants to start thinking about dating, and so there's a lot of opportunity to enable dating products for them, which we already have a lot of dating relationships that develop on Grinder. About one and four gay relationship with the US originates on Grinder, but we think we have a much better user set for them to date better and to meet people a lot better, and
AI is a big part of that. Cal And mentioned that a minute ago matching is a really huge opportunity for aim baously because big data is so valuable in that regard, and that's something we will invest money and effort into as well.
So it's quickly. You stole some headlines with your return to office policies and the fact that really cut down on some of the people that you employ. How has that affected the business briefly.
It's going to have no impact on this year.
Obviously, we raise guidance now twice and so business is doing really well and able to build all the things we need to build, and we're not at any way concern about that for next year as well. I think what it does, you know, allow us to opportunity to do, is to attract people who really want to go after audacious goals, who want to go solve in possible things and you know, deliver really great results for both our shareholders.
And our users.
Grinder is this amazing place where you both can have a really great business and also do really awesome things for the user base. And we'll continue to.
Do that, all right, Grind. The CEO, George Harrison, thank you so much for your time.
Welcome back to Bluemertnalogy.
I'm Caline Hid in New York and Amed Ludlow in San Francisco. Carra quit check in on the markets. The story really one of eco data, right. We got that inflation print sowing cooling inflation broadly. You look at the n AS that one hundred almost two percentage point, and you were talking, Cara about the kind of shorter end of the curve US tenure yield. Also seeing the you'll
pull back down some seventeen basis points. Why do we cover rates well, the impact equity markets as you see behind me, But it's kind of interesting how the conversation might change into private markets as well. Right when interest rates started to take off in the back half of twenty twenty one, what happened global VC funding came down.
So even though the conversation now is about whether or not we're at peak rate, it's going to impact public and private markets going forward, which is something we love to discuss on the show.
It satinly Is and that intersection. But actually what we also love to discuss is the fact that technology hits every single industry group, and not always in the most positive manner, in particular when it comes to cyber attacks. Look, just days after the Industrial and Commercial Bank of China got hit with that ransomware attack, members of the management we understand from dropped on a plane over the weekend
to reassure market participants. Right here in the United States, the officials spoke with hundreds of MEMBO firms of the Securities Industry and Financial Markets Association, according to sources, but it's still unclear when the stricken systems will actually start functioning again. Of course there's a big impact on the all important.
Bond market ed a stick with cyber and data security and bringing Rebrix ceob posting at Rebriks just put out its latest data security report, and I guess the best phase to start is from a technology perspective. What was the conclusion? What is the threats that data holders data users around the world face right now?
It's a cyber mayhem out there. What our research report found was one in three people lost their personal information and they don't even know about it. Personal informations such as social security number and other contact information. And what is also interesting is that two out of the three organizations have data growing so fast that they can't even keep up with the data security. Ninety eight percent of the IT leaders are saying that they can't secure the
data because the data growth is so much. Just look at what happened at MGM. MGM had one hundred million dollar cost because a lot of their customers grid card information, contact information was actually stolen.
I think the staggering figure that jumps out of may is that one in two or fifty percent of all companies that have had some kind of loss of data from a cyber ins Then where is the threat coming from you know, traditionally we'd say, oh, well it's coming from Russia or China. Is that still the case.
It's a combination of many things. You could have bore teenagers trying to monetize. You could have national estate actors, industrial espionage. I mean, the cyber landscape is much more complex, much more active. Is because the digital economy is becoming such a big part of the overall economy, and cyber is a massive threat to our economy.
Precisely, total volume of data and an organization that they need to secure is sort of rising, you say, seven x over the next five years. What on earth is a cso to do in this current environment? Just spend more and more, get more and more, sort of focus on cyber on on bringing in more protections. How on earth can they battle this? Just absolute explosion of data.
We have to reframe the cyber discussion.
Cyber discussion so far has been about prevention of attacks, and that's what cybersecurity industry is doing the last twenty thirty years. We have to reframe the discussion from prevention to resilience. You have to do prevention, but that's not enough. The resilience says that you can continue to operate the business even in presence of cyber attacks and breaches. You protect your customer's information, your IP, your core business data even when the breaches.
An attack happen. That's the future cyber resilience.
The future, many would say, is also how you deploy genet AIAI more broadly into becoming not only the attacker but the protector. Here you're backed by Microsoft, of course, which is pending an awful lot of its future on artificial intelligence. How are you weaving it in am brubrick.
Cyber attacks have gone beyond human cons You have to fight fire with fire, and as attackers are leveraging AI to generate more codes to actually attack you, you have to apply AI to understand what the heck is really
going on. Because the data lives in on premises, data lives in cloud, data lives in SaaS applications, and there are so much volume, variability and velocity of data generation and usage that you have to apply AI to understand a bad actor touching your data in the cloud, or bad actor touching your data into SAS, and how to connect all these dots to really deliver cyber resilience end to.
End people were almost at the end of twenty twenty three, believe it or not. Started the year at CES where everyone said the private sector isn't doing enough toward off cyber threats. Then in April we went to OURSA and everyone said the private sector is not doing enough the word of cyber threats. By the end of twenty twenty three, will anyone have done anything's word of cyber threats?
See that everybody's trying hard.
The challenges that we are stuck in this old model of preventing attack trying to stop attack. We need to reframe the discussion saying prevention is important, but just relying on prevention is failure to plan. We need to have a strategic cyber defense initiative which assumes that attacks are inevitable and how do you continue to operate the business in presence of attacks, Have a strategy about resilience, have a strategy about recovery, because again, the digital trust is
important for a function economy. And if you don't have digital trust, if the systems are down for days and days, just in case of MGM, people's ability to transact and have confidence in the system will be very low.
PEO will I want to ask more about your company because quite clearly you've got a lot of problems to be solving for other businesses. Tell us a little bit about well, the exuberance around twenty twenty three wasn't just about people needing to invest in cyber It is also about will we get more public offerings? And your name came up time and time again. How is that trajector going for Rubric?
Our business is very strong because of the fundamental realization that businesses have to have a plan of cyber recovery, cyber resilience, and that's what we are delivering in the marketplace.
Obviously, given the interest.
Rate environment, given the broader macro economy, the market is in a little.
Bit of a situation and we are watching the market.
We are preparing ourselves when the market is right, when we are ready, will enter the public.
Market, and that happening within twenty twenty three. I talked about how little of it is left is on the cards.
I don't know to be the honest answered, because I will leave the market prediction to the market experts. But again I have a view that Rubric will be a public company and we want to build a long term company.
See people seen great to have some time with you of Rubric, Thank you. Meanwhile, coming up, let's talk about women's health. The Tech Startups Circle gets back in from Shalla Sambugs. NEWBC firm Quan Carlos Riviera is going to be joining us next. This is Bluebot Technology tie now for VC roundup and first up by Dance co founder
Zangyu Ming. Five month old VC firm Cool of Adventure has leased space in one of Hong Kong's most recognizable skyscrapers and in ruts of Chinese financial houses have flocked to Hong Kong as IT tries to promote itself as
an Asian financial hub, emerging from the barony as a COVID. Meanwhile, General Catalyst being capital nearly actually three other dozen VC firms has signed a set of voluntary commitments with feedback from the Biden administration for how the startups they back should develop AI responsibly and includes pledges to forecast AI risks and benefits and audit and test to ensure product safety,
among many other things. Through these standards, though aren't binding and collective, global it wants to change how pensions access the innovation economy is a new investment fund and it's coned co owned by the California Pensions is launching with more than a billion dollars in committed assets under management and a goal of raudening the plan's exposure too bench Capital.
It let's still we're bench Capital. In one of her first investments since leaving Meta, Cheryl Samberg is backing the health tech startup Circle through her new Bench Capital Fund SBVP. Circle uses AI to analyze biomedical and genomics data with the goal of improving women's health and women's health care. Circle CEO Juan Colos Verrero joins us now here in San Francisco. Thank you for Homie, thank you for being here.
So on Cheryl Sandberg's backing, there's the cash injection, but what does a kind of longtime tech executive like that bring you beyond just the money.
Well, we are very proud and honor of having Sherry Lanton as an investor. Like the rest of the investors in Circle, we are communted to improve War one health and we are committed to do using data, and they are sharing that vision and that commitment because it's huge possibilities and room for improvements in a woman health. Because it's massively underserve. Historically, they have been out of medical
studies until thirty years ago. There are roughly around seven hundred disease that they take four and a half years to be diagnosed properly versus men, and they were all investment in and woman health is below two percent x uxclude oncology. So you can imagine that there is room of opportunities to improve woman health and using data we can do that.
So we are very successful.
Now. We are working with US Fertility that is the largest clinic in the US very far. We are also in Mexico, Argentina and Colombia and Europe with several things. Is one of the biggest laptesting companies in genetics. So having the support of people ACTUALI and Home is just going to hold us to scale, make the company bigger and have a beginn.
Impact on how does the technology work.
So I think the main difference between us and everyone else is scale and the resolution we have. We want to enable personalize and precision medicine on woman and basically what it means is that every woman is different and what it works for some woman doesn't work for others. We provide the tools on the data to a healthcare system. To understand those difference to provide the best solution for each of those women's is basically what a FDA called
we are word later real evidence. So you need to understand this collegal data in order that you can provide the best recommendation of the best solution for a new patient walking into the clinic or for a new drug development. So yeah, if we go ahead.
Well, I'm interested in that data and that data collection. It says on your website you strive to meet hyper compliance standards to ensure that privacy striving doesn't always mean hitting. How are you ensuring that this privacy to data remains I'm sure type of mind.
So this is a very important question and I'm sexually you're asking. So we are building these biomedica and genomics graph that basically connects billions of data points from medical reports, biological data, and genemics data to enable that precise and precision medicine coming from multiple and different hospitals around the world.
And we're doing it using our II platform that anonymised and remove all the PI information that it's in those medical records to make sure that it's never possible to go back and take it all the personal information and also to understand it and merged, putting all together to build that graph that can provide those unique insights to
improve a woman health. So you're using II. We are spending a lot of time to make sure that it's completely anonymized, secure, and it only builded to be the good things that we can and we want to provide for woman health.
Cheryl of course very passionate and shortom too about equality here and underserved community of women. But she's also a true business person, both of them, and I'm interested in where the money therefore comes into your business. You're partnering with clinics, are they paying you?
Where?
Where does the money flow back to you as a technology provider.
So first, we are talking about half of the population. Okay, so any business that they started getting half of the population should be a very good business stared by the fall. And second, as I said, we are working with those clinics and those fertility companies and fertility labs and genetic labs to improve their products in order that they can provide better care, to improve their outputs outcomes. In this case is starting on fertility. There is room for improvement
even so, it's a great technology. Doctors are doing great, but there is a room for improvement. So our business model at homes working with those clinics and helping them to provide better tools and better solutions to all their patients.
And it's going really well.
Our revenue is growing. As I said, we are not just growing quickly and fast in the US, but also in South America and in Europe. And the business is doing very well.
And call us what is it that Circle has done? Is it your own competence in machine learning AI? Or do you go to technology partners and take the work that others have done in AI to build out the underpendings of the platform.
We build our own technology. Okay, So in order to build a scale and the resolution that you need to provide percise medicines to billions of womens, and you need to understand in our body we have thirty seven trillion different cells. So the scale that we need and the amount of data, it's very important. There are a lot of companies that they can have billions of patients into their data, but they don't have the resolution in order to understand what is working or not working across all
of those different womans. This is similar to if you want to drive between San Francisco on New York, you want to use maps that has all the data and all the resolution to make sure that you are taking the right direction all the time you don't get lost. But also it has the scale because you want to go to all the different cities in the United States.
To do that at that scale with our human integration and only using machines and in the secure way, like Caroline was suggesting, you need to have advanced machine learning technology that we have development houses.
All that unstructured data that you're making sense of. You call it what I think medicine three point zero. We thank you. Circle CEO Juan Carlos Rivero. There Formula one's owners that Liberty Media, while they've have to apologize to the city of Las Vegas for apparently the disruption caused by the Grand Prix schedules for this weekend so all.
According to ESPN, some residents have been well frustrated by the impact of the event, with limited access to the strip and hotels during the week Liberty CEO says the racing event will bring in around one point seven billion revenue to the city well, I'm not sure how much apologizing he really needs to do, because I'm not sure how much they have to apologize to Monaco or anywhere else that they bring what is now like a well loved sport.
Yeah, so everyone has become huge in America in twenty twenty three, largely because of Netflix. But what's crazy about this? Everyone's talking about it on social media. It's a three point eight mile track for a race that hasn't even taken place yet. So the weekend Thursday's practice, Friday qualifying, Saturday race and onwards. Everyone's pretty up in arms.
There's going to be fanfair, you can bet it. And I guess maybe if you've booked your trip to Las Vegas and didn't quite plan that, then maybe a bit frustrated not getting easily about But I'm pretty sure there's going to be some good vibes only on the weekend.
Need for speed okay, streaming YouTube will soon require video makers to disclose when they've uploaded manipulated synthetic content that looks realistic, and that includes video which uses a tools. Bloomberg's Davy Alba joins us with more what is it that YouTube's requiring here? And who is it that they're requiring it up daily?
Yeah, thanks for having me so.
YouTube said in its blog post announcing this new policy that in the next year, creators who use YouTube's video platform need to check these new options on the creator side.
And disclose when they have used.
Synthetic or manipulated content in their videos, and that would automatically create a label within the video description that indicates to readers that there is some synthetic content in there, and that would apply for any AI generated video content, including YouTube's own AI making tools.
Yeah. I mean, it's notable that actually they've been wanting to law some of their key creators to use their own tools to bring generator AI to life. But this is particularly important when it comes to more setsitive types of content, right, particularly when we're thinking of elections approaching or when you're thinking of healthcare. Is there more areas where the flagging is going to be more unique, more obvious.
Yeah?
Absolutely, you mentioned two key areas.
Those are two that YouTube is actually looking at.
Elections, ongoing conflicts, and public health crises. There will be a flag that is not just in the video description, but on the video player itself. And YouTube is saying that for these sensitive topics, there's a higher bar you
have to you know, disclose these things to viewers. And as part of the requirements that it is now putting onto these creators, if creators actually don't disclose these things consistently, they may be subject to penalties on YouTube, including removal of the content on the platform or being demonetized so unable to make revenue from advertis on YouTube.
I mean, maybe all of this feels like a bit of a no brain and particularly after Meta had just been announcing they're doing the same, particularly when it comes to ads that might well have well generated content within them. What is difficult about this for YouTube? Why has it taken them well a week later versus Meta for example.
Yeah.
Well, Google has actually announced a policy that would apply to political ads on all of its platforms, including Google Search, you know, YouTube and elsewhere that would flag users people who are viewing the content if there are AI generated content in that. This is different because it applies to just content that is created on YouTube and not particularly for advertising.
But you know, Google is in.
A very special position here because they both create eight generative AI tools that really anyone can use, and they have the platforms such as YouTube to distribute this kind of content far and wide. And so, you know, all year Google has been talking about the enormous responsibility that comes with AI and you know, putting AI into the hands of people, and this is one demonstration of them trying.
To you know, sort of walk the walk and say that you know, we are doing the right thing.
We are adding these disclosures letting people know when generative AI is in use on our platforms.
All about the responsibility when you're building the tech. Two. Bloomberg's Davy Albert, thank you so much for joining us on all Things YouTube. Meanwhile, that does it for this edition of Bloomberg Technology and for another jam packed show across earnings and indeed technological development.
And yeah, and thanks to everyone out there that's listening to the podcast recapping the show. We're on Apples, Spotify, iHeart and of course of the Bloomberg platforms. Coming up on Bloomberg Television a live exclusive conversation with conversation with Ken Griffin of Citadel that coming up in the next program. It is one that you do not want to miss. From here in San Francisco going out in New York City. This is Bloomberg Technology,