From Mark hard where Innovation, Money and Power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
I'm Karine Heinelblumog's world headquarters in New York, and I'm.
Ed Ludlow in San Francisco. This is Bloomberg Technology.
Coming up, we sit down with the CEO of lyft as after the company holds its first ever invest Today.
Plus we'll take a look at GameStop as Roaring Kitty goes live with an announcement in just under an hour, and we.
Push your head to Apple's Developers conference with a focus on artificial intelligence. For first, let's just check on all these markets today, ed is a macro day, is a non farm payrolls day, is a hot labor market day, and yet actually some resilience in the benchmarks. When it comes to equities, we're off by just twelve points, even though we see roaring through Channa and seventy two thousand jobs AD and we're going to be digging into it in a moment. But the tenure yield the bond market
is what feels the pain. Basically, this labor market's too good. The Fed can't cut is what the marketstell to anticipate, and we're up some thirteen basis points on the tenure yields. We're seeing the dollar index also higher. However, it's notable that even though the dollar is higher, Bitcoin is literally still showing some risk on attitude.
Let's move on to see what bitcoin's been doing over the course of year to date.
We are back near those record highs. We're still up sixty seven percent year to date. We're seventy one thousand, three hundred. That's just shy of the seventy three thousand record that we've seen previously. Eighteen straight days of infros of increases in bitcoin, and we're seeing that money moving into the bitcoin ETF, the spot ETF, so ed so watching crypto.
But what are you watching on the micro game stop?
I want this to be, at its heart, a beautiful story about a company that sells video games, but it's not. I mean, the stock's down twenty five percent in the session. They unexpectedly announced earnings and said that they would sell an additional seventy five million dollar shares. It's been a wild ride this week, and it all centers around Roaring Kitty aka Keith Gill, who's due to go live and
speak at midday Eastern time. And I think it's important to be honest Caroline and say, haven't got a scooby doo what he's going to say or what is going to be about. And there's a lot of hypothesis out there about his position and what will happen. We will try our best throughout the hour to keep you posted. There are other things we're watching, individual names, but a lot of it's to do with next week. Lift coming
up very soon, going to speak to the CEO. Investor Day, a lot of numbers, but lots of questions about future of ride share in a world where robotaxis king in videos, down Stock split Monday, lots of excitement from retail investors about that Apple WWDC on Monday. Mark German of Bloomberg says, we are going to be told something about Apple intelligence and then finally Tesla up two tents of a percent. You have your investor Day next Thursday. I won't be here.
I'll be on a beach in the Mediterranean. But it's a big one and it's a big vote on compensation and the future of that company.
Ed you better promise me that you're not glued to your smartphone at that moment on that beach, and that you take it in over a glass of wine. But meanwhile, let's break down the numbers of what really is the macro story of today.
It's the job support, of course, dictating trade.
Sarah franca is with US CEO of the People Management Platform Lattice, and Sarah, look, this upended every single Bloomberg economist that we surveyed out there, that every one of them thought that it would be a cooling effect at least or not as hot as two hundred and seventy two thousand.
What do you make of it, Well, Caroline, what I see is unpredictability. Like you said, this was not what anybody thought was going to happen. Everybody was thinking we would have a decrease from April, but we ended up blowing out the jobs report. And so what we're seeing is uncertainty, and we're seeing jobs in these areas of government and healthcare, but it's still uncertain as to what's going to happen.
I'm told that in New York there were audible gasps when the number hit.
Such was the surprise of the world.
And a lot of our audience will watch and say, well, why do we care large it's is of the FED right that the idea that the FED won't cut rates as quickly as we thought. But we're trying to understand the story in the technology sector. This is what the kind of breakdown looks like, changes in motion picture through web search. This data, which we've dug into for the court is really interesting.
What does it tell you?
So the data is.
Very interesting when you look at this, like we saw the healthcare and government sectors have hiring. But as a tech CEO, my vantage point is slightly different. We're in an industry where we're seeing experimentation and change, and this is where we don't know what's fully going to happen, and we're curious what is the impact of AI going to be on jobs and what is the world going to be when we see digital and employees come into the mix.
Never before has it been so I don't even know what to say in vogue or important or cool to be a computer scientist or software engineer. But with that comes demand and a lack of supply, probably so big pay packages. Are you seeing that in your world?
We're definitely seeing demand for engineers and AI data scientists. But what you're wondering is what does this mean for people that use AI? What does it mean to be
a customer support representative or a sales representative? And there's a lot of interesting opportunities out there, but there's a lot of questions as well for what this means for the future of the workforce, and we need to call every company to be transparent and accountable for the decisions that they're making when it comes to their hiring practices, whether it's for people or with digital employees.
Sarah, can you answer some of those questions, What are you seeing for those that work in customer services? What are you seeing for those that are supposedly being augmented of potentially being replaced?
Well, so, the Labor Bureau shows that over time we'll see a decline in these positions and we'll have AI and digital employees being the new professions. We can see a time when we as people will be working together with digital employees. And this is a mind bended concept, but it is where we're going. And so that's where
the Job's report is very interesting. Where you see healthcare professionals, government professionals as being the main bulk of these job increases and then it's little still early days, but for AI, it's going to be interesting, and we need to call everyone to have transparency and hold AI accountable for when they do become employees, because you could be a customer service representative and you still need to be held to the same level of goals that a person would be.
Are we still seeing reskilling as a topic and actually being followed.
Through on.
Reskilling has never been more important right now because you need to be able to be able to transition your workforce into the jobs of the future.
Sarah Franklin, LA's CEO, it's fantastic to have you back on set in San Francisco. It's amazing to see the world change so quickly each quarter. Come back soon. Now coming up on the program, we're going to sit down with the LIFT CEO, David Risher as the company holds its first ever invested day. And I know so many of you in our audience had a lot of questions for David, will put some of them to him. Next, this is Bloomberg Technology.
Lift.
It's been holding its first over investor day this week, with the company projecting gross bookings to grow about fifteen percent and a compound annual rate over the next three years. Investors liking that clarity are sticking a little bit more of the lift CEO David Rusher, who's here in New York City. It was a big event whow lots of musical performances, and then the serious matter of numbers of margin.
What gets you that fifteen percent compound increase? What gets you an improvement and margin and profitability too.
So I don't think you're going to be surprised about this, but the answer is customer obsession is what gets us there, right. I mean, we're a scale business. We're a scale business. We do two million rides a day today. We're going to get to twenty five billion dollars in bookings over the next couple of years. That just means doing more of a customers, like picking them up faster, pricing better, and then innovating like with women plus connect and some of the other things we've.
Talked about before.
It's really the basics, but you do them really well over and over again and you can grow an incredibly big and profitable business.
I can see that helping bookings, How does it do the profitability? Do you have to start to charge people a little bit more to be able to get that margin.
No.
No, in fact, that's not at all on the plan. Instead, when it's the plan are things like lift Medium. So this is such an interesting thing. Think about all the different ways brands want to talk to you today. A lot of them are online, right, They're through Google, maybe Meta, whatever it is. We actually have people in cars going to grocery stores. And is that interesting that maybe you
know Cress versus Colgate. Maybe you don't care too much, but maybe there's an advertiser who'd like to talk to you, is you're about to walk into Kroger, for example. So that's part of the way that we can kind of work with margins. We can also work with modes and some other things. A lot of good ideas.
There, David, good morning, is ed. I'd like to look past the numbers a little bit. I understand the seven hundred and nine million rides you did in twenty twenty three, and you make this argument that your target market or total addressable market is based on the total miles driven in personal cars. But what I don't see is how you're going to go after that addressable market. Convincing people not to use their own vehicles but take you instead.
Right, Well, you know I don't have to do a lot of that, to be honest, it's one hundred and sixty billion trips that.
People take a year.
Let's just look at the daily commute. Every single year, people commute to and from works work fifty five billion times fifty five saw crushing billion times. So you don't have to take much of that to make a real difference in our seven hundred to eight hundred million rides.
We've got a new product that we're just in.
The process of developing, for example, to allow you to lock in your price, so every single day, instead of a pouase that bounces around, you get a consistent price.
And that's something we know people stress about.
Literally, people wake up early in the morning just to check a couple of different apps to figure out what the least expensive way to get to work in. So if we can take that off the table, that might increase us by call it a ride a week, But we're ride a week times fifty two weeks a year times millions of people. It adds up pretty fast.
David.
When I said you were coming on the show, the majority of questions from the audience were about robotaxi. You and I have discussed this in the past, but Lift has a complicated history with robotaxi. I think at the core of their question is will you survive in a world where you know, Zeus has a really big runway, Waimo appears to have a really big runway.
Yeah, yeah, so we will survive.
Let's just take that off the table right now, because I think the way to think about it is this. You know, it's one thing to create a robotaxi, and both of those companies are doing really incredible work. I'm super, super impressed with the technology and how it's come together.
But it's a very different thing to two million times a day, pick people up, drop them off, do it in weird weather, do it at airports, and so on and so on, and so I think it's a much more likely scenario that one displaces the other, that actually we work together, right, that we end up welcoming them
to our network. Because if you're a robotaxi company, and I know you've taken for example, the zooks robotaxi, gosh, you need a lot of volume to really drive the numbers otherwise, you know, I mean, you make ten ten cars, you know, ten million dollars a car, it doesn't make any sense. So you've got to have someone like us as a partner who can really incorporate them into our network. And I think that's the most likely scenario that you know, a bunch of different companies.
I think they're going to work on no soul crushing commute for Ed when he's in that zoos heading around that, David, I'm interested in you can work together with robotaxis, but you're not going to work together with Uber, And I'm interested as to ultimately they're really focusing on this advertising focus too.
Is there room enough of both of you? How are you going to compete for that?
I don't think we have to compete for them.
Don't because I think, you know, one of the things I learned from Jeff Besis is work on things that are durable. If you're going to build a big business, work on something that's durable. Okay, I can predict in five years, ten years, one hundred years, there are going to be companies like the ones we work with today, Chase, NBC, Universal, Delta with their Skymiles program, Kroger ihop. These are five
companies that we're working with today. Every single one of those companies or their siblings or their brethren are going to want to talk to customers in new ways. And we've got two million rides every single day. So no, I don't think that this is one of those zero sum things. I think actually this is a whole new category of mobile advertising. I think we're going to get their first. I think we're going to do it better. But if other people want to follow us, and more power to them.
Of course works Famazon, who work for Microsoft. Do you learn a lot from those businesses?
And both of those are plowing forward and artificial intelligence.
I'm sure you are too.
How much can you use my data as a lift user to dictate what ads I'm seeing make more specific for me without waiting me out?
So great question.
I mean I would actually turn it around a little bit and say, of course, artificial intelligence is going to revel it revolutionize a lot of different businesses.
I would start actually with our drivers.
Look at all the different ways drivers interact with our platform right now. By the way, forty one percent of our drivers don't speak English as their first language at home, So imagine a world where artificial intelligence can help with simultaneous translation.
Every single one of our drivers wants to earn more our platform imaginar.
World where drivers can use an intelligent assistant to help them figure out how to spend their time so they can earn even more on the platform. And then you get to the targeting side, and our goal is going to be to make the targeting so seamless. You think of it as a benefit. You're like, oh wow, this is fantastic. I'm literally getting a coupon off of my favor what's your favorite toothpaste?
Out of curiosity, I'm using some weird one made in India that doesn't have fluoride in it.
I like going into that big rabbit hole on.
You're one of those people, Okay, fair enough, Well you know what, I use a product called David Toothpaste.
I don't know if they're on the line now.
Sorry, it's not personalized, it's just pure coincidence. But they're also I think they have a different formulation than Florid. I don't know, not so focused on that, but it's a very nice tube.
I can tell you that.
So imagine I'm going to CBS and I get you five dollars off my David's Tuesdays instead of the big, long, ridiculous.
Thing that you get after you check out there. I think it's a better experience.
David on the AI note, I got a very specific question from an audience member on X how is lift leveraging AI? Is it truly a buzzword for them or are they really making use of it in a meaningful way? And you gave the example or a couple of examples there from the driver's perspective, what about the rider's perspective?
And what about your internal use?
Sure? So all three? Right?
So internal is really about productivity and quality?
Right? We use AI to check our code.
We use AI to come up with different ideas, sometimes as kind of idea starters. Anyway, a lot of interesting things there from drivers. I just mentioned a great way I think to sort of maximize earnings as an example, and I think for riders imaginal world, here's a scenario that I bet has never happened to anyone listening.
You ever leave your iPhone in the car? And how fun is that experience?
You know, two minutes later when you realize you don't have it? Well, you know, AI is pretty good at detecting patterns and understanding the gosh the car is moving one way.
You know, you've just gotten out of the car. What's going on here? Maybe it can we with the driver back to drop the phone off for you. So I think, look, you can overhepe AI.
You know, maybe it's not going to cure cancer tomorrow, probably doesn't, to be honest, but I do think that every single day. If we're customer obsessed and that's going to be our focus, customer obsessed AI.
We can use it in really innovative ways.
Let's CIA, David Richard, thank you so much. We appreciate you coming into our world headquarters.
I was a pleasure in New York.
Okay, time for talking tech and first start soft bank back travel app yan Algia is said to be planning a four hundred million dollar IPO in the United States. Sources say the South Korean startup is eyeing a launch in July with the valuation of between seven and nine billion dollars. The final decision has not been made in
details of the offering could still change. Plus AI startups in Silicon Valley is stepping up efforts to stop a California bill that would place public safety Guard rails on AI, saying it would curtail innovation aims to mitigate catastrophic risks posed by fut UI models, such.
As weapons development.
The measure awaits action from the State Assembly, which has until August thirty one to pass the measure. And UK tech tycoon Mike Lynch has been found not guilty of criminal charges. Lynch was accused of using accounting tricks to dupe Hewlett Packard into buying his software startup Autonomy for eleven billion dollars in twenty eleven. The outcome marks a redemption for Lynch, who for years argued that he was used as a scapegoat for the deal.
Caroline extraordinary, particularly anyone who's reported on the UK tech scenes, such as both of us have. Let's talk to Rachel Graff about this, because Rachel, he is a man who advised several prime ministers in the UK, was a pin up for what entrepreneurship could be and then.
He completely fell from grace. Is this the redemption?
I think it is.
He was found guilty and silbil Kius in the UK he's ill facing potential monetary fines or monetary fines for that, so he's not completely off the hook. But it's a stunning victory for him in the US.
What did the judge say, What was the legal reasoning that came to the conclusion of not guilty.
So it was.
Actually a jury here in San Francisco, and after the verdict, the jury said they didn't find a whistleblower at Autonomy who says that he alerted Lynch to the fraud and was then fired in retaliation. They didn't find him to be particularly credible and they didn't think that the government proved beyond a reasonable doubt that Lynch was directly involved in any fraud.
When I was reading your reporting, you know, Lynch in his legal reputation team said, well, the first thing I'm going to do is go.
Back to the UK.
Do we see the prosecution try and do anything as a next step or.
The judge yesterday after the verdict held another hearing saying that Lynch is he's free to go home. Basically, he was under house arrest and four hour supervision here in San Francisco during the trial. The judge lifted those restrictions and so he's he's free to go.
So too was the VP for Finance as well, who's also cleared who said basically he had been robbed of ten years of his life. Audible gas crying in the when the judgment was read out. Rachel, Ultimately, what does this mean for HP as well? When they is the basically put on them as to what happened with the unraveling Autonomy's market capitalization.
Yeah, so HP was not a defendant in this case. But one of Lynch's arguments all along has been that HP made a bad deal and they've been trying to escape got him. I mean, it was an eleven billion dollar deal, they wrote it. They had an eight point eight billion dollar right down the year later, and you know, he says, that's that's on them.
It was.
It was a bad deal. It's it's not his fault, and so.
It's not good for HP doing that is Rachel Graft, great job, terrific reporting.
Thank you very much.
Let's get to another important piece of blimb reporting and Bloomberg's Brody Ford. And this is a really interesting one, mate, because you have lifted on the lead on a company I find quite mysterious, Oracle and their contract with the US Department of Veteran Affairs. Just explain the basics of your reporting.
This is one of the biggest federal IT tech contracts ever, sixteen billion dollars to modernize the veteran affairs you know, back end medical records system. Huge undertaking, lots of money involved. Was given to a company called Cerner, now acquired by Oracle, and this contract has had a lot of controversies and they've had a lot of difficulties implementing it. They've had some highly publicized patient deaths outages. An Oracle has said that, hey, look,
you're renegotiating it, but we can handle it fine. We're improving things, Things are going well. What we found in these documents is that satisfaction rates among users of this new system are lower than any other system they have data on. I think it's like nineteen percent of doctors and nurses are happy with the system say it can provide high quality care. And so these numbers reveal to us that again, one of the largest tech contracts in government history is really going much worse.
Than we realized.
You've actually been relentless on this reporting, Brodie, in terms of highlighting that this Cerner part of the business is just not going as well as many would have anticipated. They're losing market share as one of the reports, and ultimately the way in which they sort of adopted the business.
Last thing we knew Larry Ellison.
Is going to be moving to Nashville because it's coming much more of a healthcare company. But this doesn't seem to be align with that.
It's a long history of tech companies thinking they can break into the health market. Right when Oracle bought Serner, they said that we're going to be able to expand our earnings massively. Reporting we have shows that a couple of years out the revenue is down in large part because of this VA contract that's been on pause. So yeah, I mean this is a classic tale. Amazon's been there,
Google's been there, Apple's been there. Where healthcare is a hard nut to crack, and folks continue to learn that.
Does Larry refocus therefore on the gift that keeps on giving, which is artificial intelligence, and repivot away from all things digital health?
Well, one thing is that when it comes with this digital health system, a lot of data and so a lot of people figure that all of the patient data in here, this could make a really good AI system. At one point, we don't have it yet, but five years from now. I mean their long term vision for modernizing CIRT is genuinely compelling, and obviously we know that the health system is not doing well. I mean, we
could certainly use a better solution. So I think, as you say, with all the data, the long term vision is compelling. The near term difficulties have been much more than it seems they anticipated.
Pretty great reporting. Thank you always on Oraticle, Thanks coming in and talking us through it.
Ready for that.
Welcome back exploding the technology Ed Lard though in San.
Francisco, Karen had in New York digesting a very strong jobs report. Let's get to the markets quickly, because there's a macro kind of a day when you have turing and seventy two thousand jobs added, much higher than any of the economists we surveyed thought, and we're currently seeing therefore, actually in Nasdak being pretty resilient in the face of a very hot economy that maybe the FED can't cut into, but the bond market less so look ed. We're seeing
about twelve thirteen basis points add across the curve. I shine a light on the two year but similar moves to the tenure as well as we anticipate maybe the FED can't cut in the way that the market had anticipated. I'm looking at Bitcoin also shaking off some of this worry that good news is bad news, because we are risk one once again, eighteen straight days of gains for bitcoin, phenomenal run street that we've seen. At the moment, we're up another five ten percent, near that all time high.
Move on and see what's happening on individual names. Look, it's a job's day to kind of day. I want to shine a light on ADP because actually this particular data provider HR Services, it's the best performer on the na's that one hundred to day. We're up more than one point six percent, which shows that actually nothing's moving that much. However, they are showing from Bloomberg intelligence and analysis that they're going to be really resilient within their
market share area of HR opportunities. I'm looking at what's happening with Nvidia after the bell today. That is, when you suddenly see your one share divide it into ten. We've still got the same overall value of the company, and maybe retail investors get back into the name. But we have had such run in this. Of course, we know that it's up near three trillion dollars, maybe just taking some profit ahead of that retail event. And I'm looking what's happening with a retail frenzy.
That is game Stop.
We are down down, down today, look at it down by nineteen percent. That on the basis are fundamentals. Let's also then dig in a little bit more on the fundamentals, the fact that their numbers are not living up to those two analysts' expectations.
But actually there's a lot more than fundamentals on this particular company. Ed is it?
Is it fundamentals?
Game Stop is a company that sells video game stuff and memorabilia in physical stores, and havn't got a clue really what's going on. One person who does is Bloomberg's Bailey Lipshaltz. The game Stop memes stocks are of the Bloomberg newsroom.
So Carrie's right.
They surprisingly release earnings, they do an equity offering, and Roaring Kitty is going to speak in twenty eight minutes time.
Explain what's happening, please.
And so much is going on, so we'll start from the top. The stock was up double digits overnight and into this morning after rallying about fifty percent. Yesterday, as Keith gil Teesday returned to YouTube for the first time in three years. We then saw game Stop pull forward earnings.
It was scheduled for Tuesday, they surprisedly released them this morning and then quickly announced that they will launch an at the market offering that could sell another seventy five million shares, which on current levels for that stock could raise close to two point seven billion dollars. Again, they did this back in May, raising almost a billion dollars after Rowing Kitty made a return to X so all
eyes and ears will be glued. As you mentioned in twenty eight minutes twenty seven minutes on too Roaring Kitties YouTube page to a confirm if you'd still him and be try to get some sense of what's going on with his investment, which he's touted on Reddit and also has really posted over the last four weeks pretty NonStop on X.
And that could be worth almost half a billion now according to your math when you're looking at the overall holdings of shares and options. There's so many directions to go here, baby, because we could focus on the fact and whether Game Stop itself is exploiting this moment and shareholders by diluting them yet further, or whether they're being savvy. We could also dissect the fact that here is Keith
Gill potentially even manipulating the market. That's something that we're starting to hear talked about.
Yeah, that's a concern.
We've seen the Wall Street Journal reporting that E Trade is considering banning him from their platform, which makes me feel a little bit better if they're in fact actually can confirm that he is taking these stakes and making these investments in the company. But Caroline, the main thing that stands out when you look at kind of the concern around market manipulation. When I talk to securities lawyers need to be able to prove an intent to manipulate
the market and follow through on that. So far, he hasn't sold the stuff as far as we know, according to those screen rep he hasn't done anything with those options. So it's really a weird area that has not really been discussed in the past. But one thing that did stand out when I was talking to an investor this morning is he said back in twenty twenty one, a
lot of us thought it was funny. No one's laughing right now, the SEC seemingly is investigating in y trade obviously, and Morgan Stanley are looking into it.
I actually get all of that.
I think it's worth a bit of a history lesson here, so you know, I joke, but GameStop is a physical retailer of video game stuff and associating memorabilia and you know, as depicted in the film Done Money. When Roaring Kitty aka Keith Gill started all of this. His explanation was, as Carol pointed to, like, he was believed in the fundamentals of the business. Just just give us that historic context.
Yeah, if you go back to twenty twenty, at sales were slumping, there was a lot of uncertainty around what the fundamental argument for game stop in a world where people are increasingly downloading video games is and how the COVID dynamic would actually shift that because if you play a video games on your PlayStation or your Xbox, you don't have a need to go into a physical store to buy those games anymore. His argument was that the stock was so beaten down that there was an opportunity.
He also was the first to call out the fact that about one hundred and forty percent of shares were sold short, so a short squeeze had kind of been right for the opportunity. He also kind of tailed the investment from Ryan Cohen, who's now the CEO, that he took in late twenty twenty and then added to in twenty twenty one when he ultimately took over the board.
So when you look at the history of Keith Gill's position back to twenty twenty, when people really were ignoring him because the stock was going down and he was just someone on YouTube talking about investing in the stock, some of those aspects did kind of come to fruition. The main thing that analysts and investors point to now, though, is the stock right now was trading with the north
of fifteen billion dollar valuation. So the argument that his deep value analysis was that played out is kind of potentially overdone just given the fact that the fundamentals of GameStop, as we saw what the quarterly results are not improving.
We do not have a real argument for what the path forward looks like from Ryan Cohen, And when you look at it on a fundamental basis, which analysts prefer to do, there's a lot of uncertainty and just how you could get to a sixteen billion dollar valuation given drying and slowing sales in a market that seemingly is continuously squeezing.
Game stop out a whole two market analysts right this stock, I believe, and it's currently trading at a forward pe of three thousand, six hundred and ninety five. Go figure, Bailey Lipschaltz. No one's laughing this time, especially well, it wasn't the hedge funds last time, either.
Was it.
We appreciate it.
Meanwhile, Apple, let's talk about that because they're introducing a new homegown app next week called Passwords, because an effort to make it easier for customers to log into websites and software. That's according to sources. Let's bring in Bluemberg's Mark Gumman for more on this. And plenty of people out there use last pass one password and it's clunky, but it kind of makes us feel satisfied.
We've got enough protection. What Apple is Apple offering here?
Yeah, So, as part of the company's next operating system updates, they're going to launch a whole load of new features, from AI to new types of emojis to new texting features. But one new application at least will be part of the story.
That's passwords.
It's going to be a competitor, like you said to one password and last past. It'll be a dedicated app where you're able to store all your login information for websites, secure Wi Fi passwords.
You'll be able to use.
Pass keys, which is a new initiative from Apple, Google and a few other tech companies where you use space ID or touch ID in lieu of a password, sort of this encrypted phrase that's stored directly on your devices.
So it'll support that as well.
And the idea here, like you said, it's going to get more people to securely encrypt and store their passwords. And this is going to be stored using a service called iCloud Peachain. This has existed for some time on Apple's devices before to access your passwords you have to do so from an interface.
Within the Settings app.
Now it's a standalone, dedicated app and that's probably going to boost usage quite considerably of their password storage service.
Mark Apple WWDC.
On Monday, you've reported that we will get something called Apple Intelligence. And finally Apple will show its hand in the Generatordai era.
Give us your preview please.
Apple Intelligence that is going to be the core element of.
WWDC on Monday.
Obviously, the passwords thing I talked about is only going to be a small bit of that. Apple Intelligence is out push into artificial intelligence. The plan is to add AI everywhere, infuse it with all of the core applications messages, Safari, mail notes, calendar, voice memos, reminders, uses it. Pushing AI everywhere in a very privacy conscious way. Now in terms of Apple's own in house tools, so there's not going to be a ton of generative AI.
For the generative AI component.
That's where they're going to be really focused on a partnership with OpenAI, having a generative AI chatbot basically a bespoke version of chat GPT within the iPhone on device, Spotlight, Search Engine right, and components of Siri. So you're going to get in house on device large language models from
Apple to power the AI within applications. You're going to have an iCloud based infrastructure using Mac chips to power more components of the AI initiative, and then you're going to have open Ai to power the generative AI part of the initiative. So this is a three prong approach. Apple believes it has a strong story to tell. Personally, I think we're playing a lot of catch up here
with their AI initiative. But again, they have a user base of over two billion devices, and so overnight they are going to naturally become the open market leader of artificial intelligence.
Think that's Mark Gumman an absolutely astonishingly detailed WWDC preview, and you're often absolutely spot and we look forward to it. Coming up on the show, We're going to bring an end to our New York Tech Week coverage and sit down with one of the city's most valuable startups. The president of data Iq joins us.
Next. This is Bloomberg.
On New York Tech Week.
It's coming to an end after the technology industry in NYC has gathered for a week of events of panels or conversations and parties.
And I'm pre used to say not too exhausted by at all. It's one of New York's most valuable startups.
Joining us now is data Aiku president Chris Fanka Truman. Data aku is actually a leading AI machine learning platform for enterprise companies. Basically, you're selling universal AI platform. You help governance with cost management, with security, of generative AI applications based here in New York. Interestingly, you've also got a hub in Paris.
Yep.
Why these two ecosystems, what are they doing for you?
Yeah, we actually founded in Paris. Are founders all French, the mathematicians and Frances becoming especially Paris is definitely becoming a center of AI.
Great education.
And if you talk about regulation, of course you're talking about AI, you have to talk about regulation. The Europeans tend to be a little bit ahead of the curve in terms of regulation, and of course a lot of the regulatory aspects of where Europe is actually heading towards will come to the US, will come to issue just like GDPR. So actually seeing what's happening in Europe, especially in AI, is going to be critical for global enterprise.
Companies, And therefore it helps if you're selling them governance in ways to sort of look around corners. But does it also then make the future opportunities a little bit slower to take the bite. Our CEO is a little bit nervous about jumping full into generative AI.
Now.
I think we largely sell to enterprise, and you can't find an enterprise company which is not regulated right where there's oil and gas, insurance, financial services, you name it. And instead of thinking of governance as more like a lack of innovation track type of concept, I think finally, I think we started to think about governance in a little bit different way. So a data who are talking to our clients, so we largely sell to Baybay large
enterprise companies. We have over ten percent of the global two thousands, for example, very complicated global businesses, and you're really trying to educate them in terms of what governance, what regulatory aspects that they have to actually tackle right now, because, as you correctly identified, if CEOs thay think, hey, this governance thing is going to be very opique. Ideally don't know where to invest, how to invest, and let's be honest,
AI is not cheap. It really requires a rethinking in terms of how they actually distribute their either data or IT budgets. But I think we are doing a very very good job of actually going ahead of the curve really speaking to them so they actually can create those guardrails right now in their organizations and for AI to really be effective and not think about AI like something like everybody. Everybody can use an enterprise. We have to completely rethink who are they going to be the users
of AI. It's not really going to be the data scientists or the data engineers. You don't need a PhD firm Standford to actually figure out AI. We have to rethink how the whole concept of AI is going to create value.
Well Chrig, yeah, you said it just then.
AI is expensive, right, And we reflected earlier in the show in the context of the jobs data that there are a finite number of computer scientists and software engineers from Stanford or otherwise. Are you able to get the people that you want in New York and in Paris?
And are you paying them over the odds?
I think we have to think about AI completely differently. I think right now we are thinking about AI really inform a lens of compute and the hyperscalers and if what we do and what we do really special in data IQUP and I'll go back to your question why we can actually go attract really high quality talent? Is we think of AI as something that everyday users in
an organization should be using. So not only the data scientists, but the person who works in finance, the first who works in HR, the person who works in legal, the person who actually works in manufacturing. Those people don't need an advanced degree to really take the value of AI, because right now what we are seeing behind the scenes in terms of AI, most of the investment and the value creation, both for company as well as for investors,
is going to come in the application layer. Just like in the early days on the Internet, we put a lot of fiber right, we put built a lot of large data centers, but the people who really really created value are in essence, the people who actually created the application, and similar we are ton AI. You will actually see that we hire board scientists as well as regular folks because the other people can really understand the needs of the end user and actually can drive m.
Sorry to cut you off, we got to go.
Data IQ President krish Benker traman crazy have Them program.
Thank you.
San Francisco's mayoral race is ongoing. We've been talking to some of the candidates about their vision for the future of this city. Some say it's tech centric nature needs to be harnessed. Others say it's too tech centric. Let's get the view of another candidate. Annually, re founder and former CEO of Tipping Point Community and Mark Farrell has been on the show and basically said were over index historically to tech, but they've left.
We desperately need them back.
You share that view, but you want to specifically focus on the corner of the technology industry that's looking at green energy and climate.
Well, first, thanks for having me. San Francisco is coming back. There is not a question in my mind. This race is about how quickly I'm running against a number of city hall insiders who frankly got us into this mess. And it's not going to be done by anyone from inside that building. It needs accountable leadership, it needs new ideas. I'm excited today to talk to you about my proposal to bring a climate Innovation hub here to San Francisco. And you've just had many guests on talking about AI.
San Francisco is already the center of AI, but we need to marry that with I've heard that a lot with respect missterilliary.
What are you actually going to do?
You know what is a concrete policy that's going to get a company to say, yeah, you know what, this he's going to fix the city.
We're first off, we're coming back. We have the best research institutions We have Meta, we have Google, we have open Eyes AI, and we have a say we have open office space. We have twenty two salesforce towers of open office space. We have to streamline permitting to invite clean tech companies back here. You need a mayor with vision that no longer is going to say business is a bad word, but we're going to embrace tech, clean tech. We need to do this. We need to do it
with new vision and new leadership. And that's what I bring to this race.
What kind of I guess coalition you're building, Miss Deilliary, You know who are the companies and existing industry leaders.
That you feel are backing you. Well.
I have a track record of bringing together the business community, the nonprofit community, of the civic community. Mayor ed Lee actually asked me to chair the bid for Super Bowl fifty back in twenty thirteen. We had to go up against Miami. I led the cheerleading for that effort. We won the rights to bring that game here. We brought two hundred and forty million dollars worth of economic revenue to San Francisco, to the Bay Area. And guess what, we created the Bay Area Host Committee. We got the
NBA All Star Game coming here next year. We have Super Bowl sixty coming back, we have six World Cup matches coming here. The eyes of the world are going to be on San Francisco again. But we have to do the basics.
Ed.
We have to have clean streets, we have to have safe streets, and not just when the JP Morgan healthcare conferences in town or APEC is here. Simply put, we need new leadership, and that's what I provide.
There's a political risk here that is not just meyoral candidates coming up, so there's also a presidential election that might not be that supportive of climate tech. How do you ensure that we're not going into a bus situation that you're betting on the right ecosystem here at Daniel.
Well, listen, we all know we need to have decarbonization.
We have a climate crisis.
We all know that when you're looking at companies like Meta Google, they need more energy, they need more power, and they have their own climate goals. And so this is a technology that is just getting started.
I'm certain in trouble. I just want to get to the idea of what the city will become. One vision associate with your name is Wall Street for Climate Tech Bros.
Is that fair?
Well, Listen, this city needs to get back to its roots. We need to be focused on arts and culture. We also need to embrace business as well for us to be a great American city. We also need the tax revenue that we have lost under the current leadership. We have seen businesses fleeing this city. It's time that we go win business back. I've done it before and I'll do it again.
San Francisco Meryl candidate Daniel Luy, grateful for you coming into the studio. Thank you for having me and as if the brace progresses, come back again, Carol.
Fascinating the way in which cities continue to evolve. We've taught New York, talked a bit of Paris, San Francisco. But look, this is the end of this edition of Bluembog Technology. A lot to look forward to for next week and indeed in a few minutes time.
Yeah, I mean just incredible. What's happening next week? Nvidia, Apple, and Tesla. I'm away, but Caro, you got this and in many ways I'm envious.
Check out the pod.
You know where to find it. From San Francisco and New York. This is Bloomberg Technology,