From Mahart. We're Innovation of Money and Power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed lud Love.
I'm Caroline Hyde live from San Francisco, Ed Ludlow, He's on location in Palo Alto, and this.
Is Bloomberg Technology. Coming up.
We go live to Palanteer headquarters. That's where Ed is sitting down with the CEO, Alex Krk to.
Dive into Guess What AI.
Their full conversation later this hour, plus we'll push ahead to the earnings out after the bell. Broadcom is the latest company to test if this AI rally is a reality and the EU's Digital Markets Act it takes hold today, hitting big tech firms with a list of dos and don'ts.
We'll break down.
The epic battles already raging for Apple and so much more throughout this hour. But first look at what's happening with Apple. They cannot really catch a break. We're still lower and that's as we try to dive cell for really digest what's happening with the EU and how it's going to impact some of these big gatekeepers as their name. Let's dive into it they e use Digital Markets Act.
It is coming into force today, hitting big tech firms with a broad list of dos and don'ts, and well, really they're going to face some threats of significant finds that they don't live.
Up to the regulation. The aim, of course, to create a.
More competitive online field and posting changes on these six so called gatekeepers. Apple is one of them, but so is Amazon, so is Google owner Alphabet, So it's tiptop Pairent, Bike, Dance, Meta, Microsoft.
Today. Apple already faces questions from the EU, the.
Regulators over there wanting to know about the accusations that is barring Epic Games from opening its own app store for iPhone customers in Europe.
That is what these new rules are meant to be allowing.
Blue Meg's Mark German has more and the battles still rages on Mark. Just give us the inside track of why we're seeing Apple not allowed this third party app store to come to light.
Caroline, Apple has a law on its plate right now. It's looking for its next big thing today. Like you said, the Digital Markets Act is coming into place. There is a lawsuit coming from the United States Department of Justice before the end of the month. So They're already dealing with a lot. This latest bit completely unnecessary reading between the lines. Essentially, Apple's app store chief Phil Schiller and other people at Apple, perhaps we're upset about Tim Sweeney's
tweets and response to the DMA rollout. That's Apple's way of complying with the new E regulation. Sweeney tweeted that Apple's response and their new policies are quote hot garbage. He called it malicious compliance. He had a few other choice words, or, as Phil Schiller called it in an
email to him, colorful language. And so Apple decided they're going to yank Epic Game's new developer account in the European Union in Sweden that would allow Epic Games to roll out its own third party at marketplace for the iPhone in the twenty seven countries that make up the EU. Apple pulls that developer account. Now the EU is asking more questions on the launch date for these new rules. Not great, and this has the potential for the EU
to continue to find Apple. Apple I think, in the mind of the EU probably doesn't have a great argument for why they did this, pulling their account because they didn't like their response on Twitter about this. It's not a great look for Apple, I would say, and it's a little childish on one hand. On the other hand, you know, there's the perspective that Apple believes that Epic Games is going to break the rules again and they to protect their users. So certainly not a great development for Apple.
And we've been hearing the course, Spotify also taking issue with some of Apple's ways of working around the DMA and feeling that they're still going to be charged an untoward amount of money ultimately if you do get more than million downloads on your apps. As you say, Apple faces so many issues right now. And the key piece of reporting, of course, that you brought us last week was this almost ten billion dollar effort of a car
over years of expenses that then they've retracted on. They're no longer going to be building the so called Apple car, and they're putting the money into general to AI, you've got a real deep dive on what really went wrong here.
Just take us through your big take today, Mark.
Yeah, I actually think that's why the stock has been down lately. Initially you saw the stock jump up when Apple pulled out of the car a week or so ago, But now I think investors are realizing what's coming next. Investors always want to buy into what the future of the company is, and that future is not so clear, and it's less clear now after pulling out of the car project. They had gigantic ambitions to build essentially what amounted to a private jet or living room on wheels.
You had club style seating, recliners, you had footrests, gigantic TVs and state of the art audio system the ability to watch TV and FaceTime and game from your car while it's driving itself. From what I'm told, some of the designs of the Apple car were absolutely beautiful. It looked like a canoe EV with white wall tires, a white exterior, dark black tinted windows that could adjust their tint levels, like a Boeming Dreamline or airplane, some state
of the art autonomy systems. Everything in there was state of the art. It looked nothing like you'd ever seen on the road before in mass quantities. But there were major problems from indecision on what to do, what levels of autonomy to go for. From the very top of the company. There were issues, of course about the technology
and when autonomy or full autonomy would be ready. There were manufacturing concerns, competitive issues, and of course the real nature of the competitive car business and the profitability of what a car would bring and the challenges in that business.
But one thing I'll say, I spoke to someone involved in the project yesterday, and you know, they really pushed back on that idea of their being profitability concerns, which there absolutely were, But this person disagreed with those concerns, saying, you know what business is harder than the automotive business, the consumer electronics business. And Apple's doing a spine there.
I said, Mark German, such great reporting. We thank you for it. Let's switch gears a little bit now and go to where the optimism in the market has been. Chip makers, Broadcom earnings. They're coming after the bell today. Investors are waiting with bait in breath. I want to say if the continue is really going to be there for the AI frenzy across hardware, across chip stocks. Most common, Ryan Nicky is with us. We're pleased to welcome comment. We are anticipating big numbers, are we.
Yeah, so investors are really looking at these earnings as the next gut check for as you said, the chip making stocks, the sort of hardware the pigs and shovels, if you would call them that, of the AI rally. And so what Wall Street is expecting here is for Broadcom to report about eleven point eight billion in revenue for the quarter, which is a thirty percent jump year over year.
Most of that is from AI.
And what they're also looking for is that the total chip sales, which in the last quarter was about fifteen percent of total chip sales, will go to about twenty five percent for the total year. So they'll be looking at an update on that is their progress. Are we moving from that fifteen percent number towards that twenty five percent number. The stock is looking really good up into
the earnings. We're up about three percent today, twenty five percent year to date, and fifty percent from its last earnings release.
And this has been huge.
Broadcom is a little bit of an unsung AI hero, I think, because it's the tenth biggest stock in the S and P five hundred right now. It doesn't get the same shine as the star of the show in video, but it is in a similar realm. One thing investors are also looking at here is that sort of unlike in video or AMD, Broadcom is a little bit less of an AI peer place. So though AI is the biggest thing that investors will be looking at, there are
other pieces of the puzzle here. So on one hand, some people say that could be really beneficial if AI is indeed a bubble, there might be some insulation for broadcome investors. But on the flip side, it could kind of hold back some of the growth that some of the AI names are seeing. So there's a lot that investors will be looking at here. If the last release was any indication of what's coming on the call and the future guidance from CEO Hockey tand is going to
be really important. Last quarter, we actually shares dip a little bit and then go back up when the CEO said that AI is going to be a bright spot for them going forward.
Tom and Ronicky will please to say you're going to be all across the story when the numbers come out after the bill.
We really appreciate you on the show. Thank you.
AI is going to create tremendous wealth and value shareholders, for stakeholders, for employees of these companies, for the people and the businesses that utilize AI. And we can't leave behind women in minorities in this value creation moment.
Salesforce executive Claris she there on just how diverse workforces are key to building artificial intelligence models and creating the policies in fact, for responsible AI.
We want to continue that conversation. It's a hot topic.
We know.
Narna Sing's with us, founder and CEO of Credo AI is a responsible AI governance company which allows businesses to ensure that their AI is compliant, transparent, auditable. And my perspective would be that your business is just up into the right people desperate to get their governance in place.
Is that really happening, Caroline, Good to see you, you know right now. Governance has a very interesting connotation in the world of AI. Many see it as actually a deterrent to innovation, but that's actually not the right way to think about it. We have seen that organizations that embed and start doing governance early on in the AI journey are the ones who are.
Actually showing up a inner.
So I think this is a very interesting interplay between governance and innovation, and I think we're going to see that drastically changed this year.
What's interesting is, I mean the headlines keep coming.
I think in my colleague who's Jackiedavloss writing that there's been sort of a whistleblower over at Microsoft at the moment coming forward, saying that there are concerns within the copilot of image generation with Dali, and they feel that there's not enough governance in guardrails in place this safe image generation when it comes to these large.
Language models, and we know what's happened.
With Gemini where almost to correct one bias, they ended up bringing us completely ahistorical images. How could governance have perhaps fixed this ahead of time before release?
Yeah, great question.
So you know, GENERA and AI by itself is a very complex technology. One of the things that I think most people don't understand is it's not just a technical problem. It's a social technical set of problems that are getting introduced in artificial intelligence. So what that rule means is how could geminize problems be solved or what we are seeing with Microsoft, it actually needs oversight across your organization. It needs oversight across your systems, your AI models as
well as your data sets. But more importantly, it needs stakeholder involvement. And that stakeholder involvement really comes from everyone in the organization. Your risk and compliance and data science teams, but also your users, right, So what are we actually providing these A applications for and how these users are
getting impacted is really critical. And I think that's what's really critical for organizations to understand is before putting systems out in the market, not only thorough testing an evaluation, but making sure the right diverse set of eyes have been on those systems to make sure that they're actually meeting the end goal is really critical.
Can you just tow me through it as if I was a customer? Yeah, what do you come in and do? How do I put this governance in place?
Yeah? Absolutely? So the key thing.
Is there are three core pillars of AI governance. First and foremost is alignment, Carolyn, As you can imagine, what does good look like for your organization really varies organization by organization, and that's why alignment on what are you going to measure, how often are you going to measure, how are you going to report against that alignment is really critical. So our software basically helps you with alignment
as a service as step one. Now, once you've aligned, the second step is really critical is what are you testing? And as I mentioned, given the sociotechnical nature of artificial intelligence. You have to test everything from your technical AI systems. Two, how your organization is set up to actually provide that oversight and accountability. And then the last thing is how do you actually make the outcomes understandable by the diverse stakeholders.
Not everyone is an AI expert, right, So how do you actually create the rist boards, the transparency reports, the audit reports so that all these different stakeholders can understand one, what are the risk within your system? But more importantly, what mitigations are you going to put in place and the accountability structures you're going to put in place to make sure this AI works for.
All We've always been here before.
You look at the eregulation coming in today is a highlight that many regulators feel innovation was put before safety or indeed level playing fields competition. When you're saying innovation is being seen as the offset to guard rails, do you think more regulation is.
Needed to ensure that companies are.
Using CREATIOAI are bringing in their guard rails.
At the same time, I would say that more intentional regulation is needed. I think more guardrails and enforcement mechanisms are needed. So as an example, just think about twenty twenty four, two billion people across fifty countries are going to be an election and they're going to be voting, and majority of that is going to be powered by artificial intelligence.
So when you have artificial law, is that majority going to be powered by artificial intelligence.
Because they are going to get access to information, They're going to get access to text media ads which are all going to be built around artificial intelligence. And we've
seen examples of defix already showing up. Right, So the key question that we should be asking ourselves is one not only what the bills and policies are in place, but how are they going to enforce it so that a normal, you know, voter, a citizen who's actually going and showing up to vote, actually has the right information before they make that very important decision for our democracy.
We've already had an executive voter when it comes to AI. You advise the White House on AI. And indeed, I'm sure policymaking is government doing enough.
We're seeing Congress moves swiftly enough.
I would say this is the first time in the past couple of decades we've actually seen government action trying to keep pace with technology. But we are in a very different era of technology innovation where it is moving so fast, and so this is where adaptive policymaking becomes really critical. And Executive Order is a fantastic example. There were key goalposts that were put in place in Executive Order, including OMB guidance. How does federal government procure third party
commercial AI? What are the safety standards that we need to establish? NIST's role in the US Safety Institute. We are a proud funding member, but I think there is more work needs that needs to happen. For example, Congress just passed the budget and this funding was.
Cut by twelve percent.
So what does that signal If AI safety and benchmarking is critical, I think we need to show investment dollars in those initiatives, and that's not happening.
I'm imagining you're a global company. Yes, what are other companies other countries doing?
Yeah, you know you mentioned Europe EUAI Act goes into effect this month, and that is a big step forward for a country that is putting European citizens rights first through a very risk base approach. The key is going to be how is that going to be enforced over the next sixteen months where each and every organization, multinational organization will have to play by the EU rules. So EUAI act is truly going to have that Brussels effect that we saw with GDPR, but at a magnitude that
we can't even imagine. And this is the time that organizations need to start getting ready for it.
Better thought, it are getting in ahead of time. Neverena saying we thank you so much for lending us your expertise.
Today, CEO and founder of Credo Ai coming up. Sk Heinex, it's investing more than a billion dollars in South Korea this year to expand and improve the final steps in its chip manufacturing. We're going to discuss why. That's also an hang house story too. This is bringing back technology time now for talking tech. Sk Heinex rumming up. It spending on advanced chip packaging in hopes to capturing more of the burgeoning demand for the crucial component in artificial
intelligence development, high bandwidth memory. Now, the firm is investing more than a billion dollars in South Korea this year to expand and improve the final steps of its chip manufacturing. Plus, China's Foreign Minister Wang Yi called the level of trade curbs that the US is imposed on the country, bewildering as his President Biden's efforts to block Beijing from advanced tech undermine a steadying of ties between the.
World's two largest economies. Meanwhile, the US government is.
Pressing its allies to further tighten those restrictions on China's access to semiconductor technology.
The Byern administration's.
Latest push, it aims to plug holes and export controls that it's levied over the past two years, basically to restrain China's progress and developing domestic chip capabilities. Let's just stick on well, the tension with US and China right now, because today the House Energy and Commerce Committee plans to act on legislation introduced by a bipartisan group of House members that would give TikTok's Chinese parent Dance just one hundred and sixty five days.
To sell it for more.
Let's bring in Bloomberg's Dan Flatley and Dan. That of course, seems to be where we're seeing the push going get rid of the Chinese ownership of TikTok.
Yeah, you know, we've sort of been here before. It's interesting, this is the latest push and it does seem to have some momentum behind it in the sense that you know, there's a markup today as you mentioned in the House Energy and Commerce Committee. There could be potentially some Senate action, although we don't have any indication yet as to you know.
How that chamber will act.
But you know, this still has to go to the House floor, it still has to go to the Senate potentially, it still has to go to the President. So we're
a long way from from actually seeing this happen. And you know, the TikTok has been under some form of national security review since twenty eighteen, and Trump, when he was president, tried to ban it in twenty twenty that ended up in the courts, So you know, there's still a lot of tape to play out on this, but certainly some action plan today in the House.
Meanwhile, TikTok's response is, well, this is curbing free speech, a right to access to such a platform. Do you think that their argument carries weight?
Yeah.
I think the reason that they're making that argument is because the First Amendment challenges are where they're on their strongest legal footing. You know, there's broad exceptions and a lot of US national security laws for free speech, and so obviously that's where they intend to mount their challenge. You know, the sponsors of this bill, or at least one of them, Mike Gallagher, the chairman of the China Committee here in DC, is saying this is not a band.
This is essentially just trying to excize the Chinese ownership of this company. But you know that's in some ways not really for him to say. I mean that the courts will have their say on this at some point. Certainly he has his argument to make, and he's making it right.
Now down fatly brilliant that you bring us up to speed with illegal ramifications. We thank you so much. Welcome back to New Meg Technology. I'm Caroline Hyde right here in San Francisco. Now it's twenty twenty three. Venture deal making declined, you know that across the board for a second con sective year.
It's pretty ugly out there.
Female founders, of course, they were impacted, but interestingly they still manage to secure a record share of total deal value as according to the latter's report in Female Founders in.
The VC ecosystem.
It's all put together by Pitchbook and they put the data out today. Let's dig in with Amriy Donaghan just the analyst behind this research. Oh, twenty eight percent doesn't look too bad. But can you put that into actual numbers? What sort of.
Money is being raised by female founders? Yeah, that's right.
We're looking at a population of companies that have grown significantly over the past decade, raising tens of billions of dollars collectively. But then when you can textualize that, look at the amount of funding for companies that have no women representation on the founding teams. You're seeing companies pull in one hundreds.
Of billions of dollars.
So quite a bit of a difference there, but definitely seeing some resilience among those companies in twenty twenty three, as broader activity has come down, those companies are hanging onto their share of the total.
Okay, So is there a number for that total?
Tens of billions in the network of thirty billion about okay, So if we look at thirty billion, why is that number heading up?
Is that because there's more just share a scale of numbers of individual founders and individual companies coming for money, or is it that the companies are starting to get such a size that they're able to raise a decent clip.
Yeah, so we're seeing fewer companies engaging because the conditions are so difficult. So it's not a matter of the individual company numbers, it's more about the quality of those companies. So standards are getting higher for investors. They're getting more discerning with the amount of capital that they deployed to
certain companies. So we're seeing larger best position companies hang on to that share, and when we look at female founded companies, we see the proportion rise, and that's indicating that those companies are already at such a high standard that they're able to pull in additional capital and have some resiliency on the downside there.
So I think some of the unicorns that were inked very early in twenty twenty three that was sort of maven for example, a healthcare company run like Kate Ryder able to raise money. Is there a sector that does well? I mean, I think of healthcare being a key area of focus for female founders, or is this like more broad Are we seeing the AI revolution being driven by women too?
Of course, it would not be a conversation about VC these days without mentioning AI. A lot of women really at the forefront of that. Companies like Anthropics, SCALEAI creator who we heard from earlier, really involved in this movement for sure. We're seeing that's pretty much one of the only verticals in twenty twenty three that managed to pull
in more capital than the year prior. So most other sectors seeing a decline across the broader VC space, but seeing some resiliency in healthcare, like you mentioned climate tech as well, some areas that have been able to hang on to that value.
It's interesting that you bring up Anthropic. We had done in on the show just earlier. But she is a co founder. Are you looking at numbers that they are within the founding team diverse there is at least one female founder, or is it more that they have to solely be lit by women.
We look at both the main methodology.
We're looking at companies that have at least one female founder, so they may have a male co founder, they may not. We also look at a smaller section of that total, which is just those companies with only women founders. That population much smaller, if only pulling in about a single digit percentage of the total dollars.
What about the people that they're sat on the other side of the table to who are.
They going to for money?
Are they more diverse vcs that are tending to write the checks right?
Well, that's a big part of the equation. You know, when you have founders that are looking to enter the space and break in, you need an investor that really can see the value of that founder and the company itself.
So big part of the equation there when we look at.
The breakdown of gender check writers at BC firms, So these are the people that ultimately determine whether or not a company gets funded. We're looking at another area that's heavily male dominated, about seventeen percent of checkerators or women in the US. So in most cases you're going to have a situation where as a female founder, you're pitching to mostly men investors. So there are definitely some implications there as well.
It's a great report, thanks for bringing it to us, Amriy Donagan. Just of course a pitch book a research analyst there. Next up we talk that AI flavor with Palenteer. This is Blue med Technology.
Welcome back to.
Bluem Med Technology and Caroline Hide and San Francisco and well we have got to get down to Palo Alto. There's a big conversation being had around AI and Ed Ludlow.
You're sat there, how has it been going?
Well, We're at aip COM where the focus for Palenteer is its commercial customers, but frankly, the near term catalyst in this stock has been the contracts win around Titan. I did sit down for an extended conversation with Alex carp the palente CEO, where quite clearly he is showing progress on going to a wider commercial customer base, but also frustration about how business is done in this country.
Have listened.
I'm very exquisitely happy about how well we're doing, both in the government and commercially. But the most important change in the US government has nothing to do with pound here. When we got to we started building this company, the idea that software would power intelligence were fighting general health
issues was viewed as something esoteric, scandalous, obviously questionable. The idea that America's primary advantage, premier advantage would be software was viewed as also esoteric, academic, self serving, and every institution in America and especially depending on have begun to come to terms with the idea. The reality that hardware driven systems purely are going inferior to software driven hardware systems.
And beyond that, our adversaries are as good or better at building hardware systems and have a deficit in building software.
What is different about Titan as compared to say, Maven, is that you are entering new relationships with other hardware providers, right like Anderil is one example. Explain how that is working in this case.
Actually, I see this as a commonality. America needs to establish dominance on the battlefield. Maven. What's publicly known about Mavin is one of these projects that actually took what America is the best at in the world software and put it in the hands of our warfighter. By the way,
at enormous costs. You're sitting in pal Alto. I had people protesting here, hundreds, putting up change in front of our office, calling us Nazis because we were dedicated to serving the American people, because we had the sense God gave a goat and we realized that if you're going to do really important things in this country, you should
defend this country with every asset we have. What really happened on the Silicon Valley side is that you've got because of that success, because of the power of it, and quite frankly, because of our success, people realize this is a place where you should invest and make America
even stronger. And then what happened is you've got a whole ecosystem of defense startups and an ecosystem of people inside the Pentagon who are ready to embrace that that are doing things, by the way, that are very similar to what's happening in the commercial space. And what are those things. We're going to look at software, not off power points. We're going to look at We're going to buy software from people have actually sold software commercially. And
what's unique about Titan is not the difference. It's that it's the logical extension. And what is that logical extension? People who've built software products that have been used on the battlefield and used commercially. You have to ask yourself a question. If your software is so good, why have you not sold it commercially and made yourself billions of dollars. So that simple insight, which you see in the battlefield in Ukraine, which you see in Israel, is something that
is hard for institutions to internalize. The Pentagon. This step is one of the most historic steps ever because what it basically says is we're going to fight for real. We're going to put the best on the battlefield. And what is the best. The best is not just some not one company. It's a team of people led by the most prominent software provider in defense in the world, talented.
If there's something you said there that inside the Pentsagon people are ready for this. Bloomberg did some quite deep reporting on the use of Maven specifically in twenty twenty four so far, and the complaint from operators in the context that it's used for targeting is that it's still not quite there. It's still this is I'm just offering you an opportunity to respond to it.
Now.
I'm not going to respond because I'd have to tell you all sorts of things. There is no one. By the way, there was a long and very important article. Everyone should read it. What the way I read the article was, this is the most important thing, one of the most important things the Pentagon has done in decades. I can tell you the way our adversaries ma even and our friends is like, what the f how do
they actually produce this? And I tell you what the average citizen read O recurs like, thank God, we're spending the money on things that are more valuable than what we're investing in. And to go into more detail, if to go to all sorts of classiz, that program is one of the shining stars of what this country has done and serves as a template for we're going on the offense. We are going to shirve dominance, and we're going to negotiate after we're the best.
Alex I host the Technology Show, and I want to talk about the technology, its current capabilities, and where it can go. Is that platform ready to move from assisting in targeting, which is intelligence basically, to giving more information. The artic will also look to the idea that there is a hope from intelligence services in the US government that it can be one day in a position to recommend which weapon to use to give more tactical.
Let me give you, let me give you commercial examples. Because I can't I can't go into I can't go into what it can do and what I can't do. I can tell you what we're doing commercially. Right now, you are going to see a normal non engineer sitting at their terminal tasking satellites, exporting a logic inside the security model of the company to figure out which satellite should be over which part of their agricultural assets, and
what should happen based on weather conditions. Now you can just imagine how you could do that with a weapon system. This is exactly what palach your commercial not Palenteer highly classified environment, Palenteer with somebody that has been hired five days ago, that can't write code, that's very smart, may not speak English, and as just enter the enterprise is doing that workflow that is happening right now, and that is why the thing that this revolution which is highly confusing.
It's highly confusing. Yeah, it's confusing because a lot of the stuff is BS. Then there's the poetry side of it. I love poetry. If I could go read more poetry, I would. Enterprises don't need more poth Yes, you mean, well, it's like I don't know somebody's delivers PowerPoint. We're gonna give you a you know. It's like, look, everybody has to try to sell something. If you don't have something to sell, you sell words. Right now, so you're selling
something that doesn't work. Can't work. You're explaining to your enterprise you can't have the car you want, which is honestly pound here. But you can have the car you don't want because this and this and this and this, and you have.
To buy it.
And that's that's by the way, that that is a plague on many societies, less so America. There is this problem in Europe that there's really no high end software venders. Luckily our adversaries have this problem.
And you've spoken about your frustrations with Europe not being more adopted.
Well, I'm pro I spent half my life in Europe. I want the West to win, so I want. But it's a confusing revolution. If you're sitting there and you're sitting in society that's lead industrial evolutions for hundreds of years, and all of a sudden, the industrial evolution is happening basically in one place, and that's right here. That's confusing. It's confusing because three vendors are saying they're going to
offer the same thing. One thing is like, you know, I'm going to explain to you why it doesn't work you have to buy or bs thing. The others like, oh, it does work, but it's only poetry. And then there's a third category, which judges by the fruits we provide, which is exactly what we're doing, which is like, great, We're not going to argue about this part of our product. That part of our product. I'm happy to explain it
to somebody who's technical. We're going to show you what happens in four to six hours as opposed to what happened in your whole enterprise over the last two years.
We will talk about the commercial business, we will talk about bootcoms, but let me just say.
I know we can talk about whatever you want.
A final point, you talked about the confusion of the revolution. Okay, Today probably will be the first time that a president says artificial intelligence in a State of the Union speech. So it's a very simple question, what is your summary of this administration's leadership so to speak of the US in the context of AI.
You know, it's very helpful if you spend a lot of time abroad, because like, if you look at this internally, like internally in America, there's a long list of criticisms that you could make of anyone. This country is the dominant country with no second country in the world. So whatever we're doing, it's working out pretty damn well. So it's like, you know, yeah, could we be better, could we have better regulation, could we understand these things better?
But again, we are dealing with a revolution. That's one of the really confusing things again for Americans is like, normally you have a revolution and multiple countries are participating. This is a revolution where the technology is pretty being produced in America, mostly in Silicon Valle.
You do have multiple customers. To just bear with me on this one. Take for example, Israel, where you are doing some work with that country. The administration as an example, is pushing for a ceasefire in that region, but you are working with Israel. How do you manage that? Because it sounds like your first priority is the United States?
How do we manage Look, we I'm very happy, very happily supply our products to our allies, including Israel. I don't like Israel. What's going on here is does America provide Israel with more aid? I don't think there's any question of does Israel have the right to buy the world's best technologies, assess them, and implement them. Israel, I think has decided we have some of the world's best technologies. They've implemented many of them and publicly discussed some of them,
and I will palent here. I think the really orthogonal may be more question was why do we say in public what everyone else believes in private? We should defend the West, we should not apologize for fighting terrorism, and we are going to provide our sharp tools to our allies. Let's talk about the commercial business.
Okay, you told my colleague Lazett Chapman one month ago, almost of the day quote, we don't know what to do with the onslaught of demand in the commercial context. Do you know one month on what to do now?
No?
I mean, if you're going to see a boot camp here a series of things we've had to you know, we haven't been able to meet demand. We've had to tell people we couldn't accommodate them. We have hundreds of people coming, not just people but leaders of industry. And if you just look at it from the internal dynamics of how do you deal with the contracting, how do you deal with the implementation, It's true these things have gone from taking us three months to four hours.
But it's also true, but the idea is you cram four months work worth of work into the day in these boot camps.
Right, It is not even a day. It's hours and so and so.
Why why is that importance, Palenteer, Why did you go down that route?
Well, the most important reason it's important to palent here is we can fight with people about power points and their ability to do Why.
Do you keep bringing up powerpoints? Is the point you're making that your competitors go in with a debt. Absolutely, this is what we'll do. But they don't have a product.
Well, I'm not saying anything. What I'm really saying is if you have it, what did you said, power co It's many times exactly. So what I'm telling to everyone there is like they may have a product, we're showing you our product. Okay, I can't comment about where they have a product. I can't tell you they're bare buttoned up and not showing any leg We show our product.
And why is it important? Yes, why it's important. I'm telling you why it's important because a people fight us, or fight enterprises that are doing the most important work with slick power points and great steak dinners. We're bad at slick power points or even worse at steak dinners. We don't play golf. What we do do is we play software. We will put if you want to actually compete,
compete on your product and what's very special? And yes, do I enjoy humiliating people who have better steak dinners and sharp ourn eyes and better at golf? So yes, I do you know what, I really I really like that we win in that way. It makes me very happy, and it makes our clients happy because let me sorry, let me finish.
Saying, but we're getting closed great well the people.
And why are our clients happy Because American industry knows that this is a structural advantage and that needs the best products. And why is the boot camp overrun? Because the clients themselves are tired of these damn steak dinners and the golf. They want to see products that actually work, that actually live up to what people are saying. What are people saying? You will transform your enterprise. You'll make it cheaper to run your enterprise, that you'll make it
safer to run the enterprise. You'll be able to track what you're doing, and you'll be able to uplift workers who formerly only could be engineers, and now they can be everywhere. And by the way, you can do all this in America. You can manufacture like you or manufacturing Japan and Taiwan. In America, you can use workers that used to have to be engineers right here in this country. And why is it? It's also fun for Poundier because we are winning, Alex, I've got to ask you before I lose you.
Actually, the most common question that I get to ask you from the audience I post on social media coming on is when will there be a direct to consumer or a I don't even know what we would call it, but a publicly available version of AIP And if that would, let.
Me tell you.
Because they see you as a leader in the space the Palenteer, not necessarily you as an individual whatever.
They see this happy But okay, look, Palier, you are seeing the tip of the iceberg when you are buying our product. Now we've been working on these things.
You can't buy it if you're a person off the street.
You are seeing the tip of the iceberg of our product development. And we are going to show more and more and more of what we have and I think people, and I would also like a lot of those people asking the question, by the way, are non academic. They are investors in Palenteer and they have supported us when we were down on the ropes, and those are the people that we are fighting for.
Anyone else thinking about steak Dinners right now? Talenteer CEO co founder Alex Kupp what an interview ed Ludlowe.
Great work. Meanwhile, look, we've.
Got to pivot and think about AI and ultimately getting into the hands of customers right more, How are people.
Using generative AI?
Amazon Web Services has just launched a new GENI competency program for partners, aiming to basically help customers figure out which partner to use, what product to be actually using within their business and have generative AI suit them and not just something that they aspire to.
For more about this program and what it means.
It's launch partners including the likes of Accentiakahir, Moga, dB, Hugging Face, and Video to name but a few, us bringing Amazon Web Services Vice President Worldwide Channels and Alliances Rubert Borno.
Rubert I love.
This focus basically on the fat that you're saying.
This can't be an aspiration. People are going to be able.
To use it practically in their businesses. How are they using aws and the offerings of large language models.
You have to change their businesses.
Caroline First of all, thank you so much for having me today. I'm really excited to be coming to you live from Seattle, where we're hosting two hundred of a WUS's most strategic partners, and we've launched just this week, the Generative AI Competency for our partners that you mentioned. I'm so excited that we have over forty five launch partners and they're doing exactly what you talked about, which
is demonstrating technical expertise and generative AI technologies. We're talking about technologies like Amazon Bedrock, Amazon Stagemaker, and joh Start in Amazon Q.
And why is that important?
Because these partners have demonstrated not only experience and knowledge of those technologies, but customer success, customer success with multiple production ready use cases. So we're excited to showcase that to customers because customers right now are thinking, I've heard about generator AI. I know it can transform my business, but who can I work with and what are the right use cases I can use?
Give us some standouts where we're already seeing use cases. How are people using Claud Threethropic's latest set of models within their business to change things?
So the Anthropic Claud three announcement that we made this week is really exciting. Claude Three's Opus model is the most intelligent model on the market today and it runs on AWS Trainium and Inferentia, giving it the best price performance. But why is this interesting? What it allows customers to do. Customers like crowd Strike, which is a leading cybersecurity customer also an AWS partner, they use it to power their own generative AI capabilities and they're able to then handle
things like large prompts and provide scale and safety. That's something really critical to how AWS views generative AI. And I'll give you a couple of other examples. One of our competency launch partner's Mission Cloud worked with a company called Magell and TV and this company has a large library of documentaries that they make accessible to a global audience, and what they wanted to do was to enable that audience to achieve to be able to watch those documentaries
in every language. Both have transcribed the translations and also foreign language dubbing. Now that's a really tough problem because you've got to have an address slang, you've got to address profanity, you've got to address inflections for the voice dubbing. It was cost prohibitive to do the old way, it costs about twenty dollars per minute. With AI, they were able to reduce that down to less than a dollar
per minute. That allowed Magel and TV to now reach a global audience nearly instantly with that technology.
But I love that tangible example.
What is also at the forefront of people's minds, and we've only got a minute left, is safety. How do you ensure that the offerings you're providing through bedrock aren't going to be making things up, but also more broadly have ethical implications.
It's a great question, and responsible AI is core to every service from AWS. We have been designing security integrated into the products from the beginning, and it is more important with generative AI than it has ever been before. We've heard customers and partners state concerns about generative AI.
Customers have the ability to aggregate data and insights from different sources, and so that's why we designed security in from the get go, to make sure there are guardrails so that individuals who should have access to the data think financial data and other proprietary information have access to it, and those that shouldn't can still make use of the general of AI tools, but have those guardrails based on
the data they're allowed to have access to. So providing policy and governance to ensure that enterprises are able to protect their information. I think this is critical for every enterprise to think through and it's going to be the way that we're able to ensure that gener of AI is adopted in mass.
Ruber great to have time speaking with you on the day that you're announcing this, of course, RUBERBORNO of Amazon Web Services, we appreciate it. Meanwhile, that does it for this addition of bloom bag technology. Do not forget to check out our podcast. You want to go and listen back to that Alex Karp conversation. This is bloombag technology.