Special: Bloomberg Tech Live From HumanX

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This is Bloomberg Technology with Caroline Hyde.

And Ed Ludlow.

Welcome to a special edition of BlueBag Technology. I'm Caroline Hyde. Right here in Las Vegas. We are live from the human x AI conference and we're going to be talking to some of the biggest industry leaders and decision makers in the AI space throughout this next hour. As you can see, a key lineup of expertise. But let's move on to also the discussion of how the public markets feed into the private markets. How does one think about the startup space as we contend with this growth anxiety,

Well, Caroline, thank you for having me on the show.

This is a great honor to be here, you know, to answer your question directly, We just think about building great companies and partnering with great founders and helping them from idea to IPO and beyond. And so in terms of thinking about the public markets, we just think about much much longer term. We work with founders at the idea stage in a y in a decade, that company can then be worth one to ten million dollars in

That megatren needs infrastructure and it needs electricity and power. That's one of the key anxieties of Andy Jesse, for example, at Amazon saying his constraint on AWS is power. Is it something that your ceo is are contending with how to ultimately sustain their growth paths?

I think it's something that they think about, and it's something that we need to work on, and there are a lot of great minds working on it. It's not something that I'm an expert in, but you're right. Power is something that we need in data centers, and the bigger the data centers we've built, the more powerful the models we've been able to build, the more powerful the applications, and so I'm sure we'll get solved.

Also interesting is, of course you mentioned how Sequoia was early into Jensen Huang's vision for AI. You're now thinking about not just sort of moving away from lllms, we're going into application layers, and we're also going into physics. I know that that's really important to you at the moment, the application of robotics. Where is the next growth story in this long term mega trend?

Well, I think they're uh, let's break this up. I think s there's still lots to do in the foundation layer model.

They're not done. These companies like open.

Ai that we backed UH early on, they're still continuing to build a foundation model layer that allows the application founders to build applications that we've not seen before. And we will continue to see UH innovation there will you continue to.

See private rounds for those sorts of companies.

Is there ever a point in which they've just raised too much money in the private markets?

It c It goes up and down.

But the p the point is that over time these companies are always surprising us in the long run on what they're capable of doing. Sure, in the short term they may uh surprise us in the I and technology tends to surprise us in the opposite direction, but in the long run it always surprises us in the positive direction. And in in terms of many of the companies who work with, they're just providing automation to.

A lot of work flows today. That's what we see today.

So companies that we work with, such as Clay, they're trying to help salespeople with their leads and autoutomatically enriching their leads so that the salespeople can focus on actually growing their business and contacting the right leads. And with Khmure or their ambient scribe is helping doctors focus on care not the administrative work. They listen in the background,

So you're looking at still LMS still then looking at the application there. What's been interesting is we have had this fomo feel in still in the latest alumni from open ai going up and starting their own company at Ilia, for example, potentially raise get thirty billion dollars without even really a product out there or any revenue stream.

Would you still back him at that sort of valuation? Are you doing following an investment?

I think the interesting thing is if you think that something could be worth a trillion dollars, whether it's what you the entry price today is important, but not as relevant as what you think the order of magnitude is in the future. And I think the order of magnitude that we think about today will surprise us in the long run.

Don't forget a decade ago.

Two decades ago, we didn't think a trillion dollar company as possible. If you compound what trillion dollars twenty percent a year of a year for the next decade, we will have ten twenty trillion dollar companies. So you know, you just have to think about the order of magnitude that is possible and we need to change our mindspace around that.

Help change our mind space because you have been seeing around these corners longer than nearly anyone. How can you see that earlier is someone to back? How can you see that a founder is in an indel you want to see the vision of and think.

That they get to build a trillion on a company.

Yeah.

I think that it comes down to the founders. And we've been very good at picking founders that are known by their first names. Jensen at Nvidio, that Steve ad Apple, Larry at Google, Sam.

And Sam and open Ai.

And today's founders are Ilia and Brian at Airbnb and Tony at geor Dash and the list goes on and on. So these founders are special because they have a vision of the world that the world has viewed, the world has sorry, the world has solved a problem incorrectly, and they want to go change it. Yeah, and we get the front row seat to see how they want to go change the future.

Is Mara going to be a name that we know and one that you're gonna.

Allow you already know.

Are you backing her?

We're talking to her, You're talking to Merrett, You're talking to Ilia on his latest funding round.

Where are investor is in LA's company?

I know do follow on because he's building something a big vision.

We'll consider that too.

Tell us about the thesis when it comes to llms and then application layers and then the robotics and physical AI. What for you is going to be pushing us forward in terms of the next situation of value coming from these companies going to Are we getting to the stage that they will see one trillion across all of those spaces?

Do you think I believe that's to be true.

And if you sort of go back in time, when I started my career, we thought that all the value will accrue to the software layer. That's why we invest in software companies. Yeah, but over today the Magnificent seven, all of them are both hardware and software companies, and some of them in the physical world. I think the physical world is going to be the next boundary that we're going to break, which is why I'm very excited to be here with Brad Porter from Collaborative robotics.

And it's interesting, of course you backed Xai when it comes to AI. Elon himself busy looking at robotics from his Tesla perspective as well. How are you thinking about who wins in the robotics space? They're gonna be countless winners and applications.

As you know that there are many many winners, Uh when there when there's a megatron, and so I believe they're gonna be many winners and robotics. And yes, Tesla's building robots. They were building cars before. They also build software. And Elon Uh is someone that we back across a variety of companies such as SpaceX and Boring Company, and the physical world is something that we will continue to attack and make progress over the coming years.

How frustrating or how illuminating is it when your founders are having arguments in public like Sam versus Elon?

Does that bother you?

That's you can ask them that those questions. But no founders have Uh a particular view of the world and they like to be they like to express those views.

So it's good.

That people sort of talk about what they believe and how they're going to change the world through that and I believe the discussion is always the positive thing.

Who and where are they going to be from?

Is changing the world at this moment when you think about China versus.

The US deep Seek.

You wrote a very thoughtful blog about the impact of deep seek and the opportunities for learning from these powerful generative AI models that come and the innovation and the data and the efficiencies we're going to see. Are we going to see a so called winners on either side and around the world.

Well, I believe in humanity instead of one country over the other. I am an immigrant to this country, and I believe that the way we operate and build businesses here is much more innovative. And so I'm rooting for the United States, but more but even more than I'm rooting for humanity to continue to progress. And the more progress we make here, the more progress the people in China want to make, And the more progress they make there,

Has always made us better.

And I believe in the United States and its ability and it's free society to do things in much more innovative ways than almost any other country in the world. It's our innovation, it's our free spirit, and it's also our capital markets. You think about our place in the world. We have what approximately four percent of the world's population, but we have a disproportionate number of the amazing companies,

And are able to invest.

This is why your viewers listen to you and this show, because Bloomberg is the place where a lot of information about capital is talked about.

Alphad thanks that they're listening to you, and they're listening to thinking about how the money comes back ultimately to your LPs, and it's going to be about exits. How are you thinking about the IPA market? How you think about M and A. Boy, we just had service now move works. M and A is still getting done.

Yeah, So I think that that's a great question shown lots of people ask that, but I just want to emphasize that at SAKO, over the last five years, we've distributed over forty three billion dollars back to our LPs, and so this is a business that, if done right, can generate a lot of returns for elimited partners. On top of that, I just kind of tell our founders it doesn't matter what's going on in the public markets or in the M and A markets, just focus on

Will always have options.

And that option may come in at M and A, that option may come in IPO.

I would contend that the IPO.

Market is always open for great companies.

What's interesting is we first saw AI come into existence almost in a not for profit mentality, and now we think open AI thinking about trying to restructure and become a for profit entity more clearly.

Is that something that you back, that.

You support, that you want to see clearer division of for profit and not.

I think that.

I think if you go back in history, AI has existed for way longer than what you're talking about, which is open AI. I mean, the j Jensen was building GPUs way longer than what we're talking about today. And the first uh, the first set of applications that we're that were AI applications were something like AdWords that Google built, or trading platforms that many of your viewers and that work at large institutions have been using. Those who were

And I'm supportive of whatever.

The right model is to do that. But as an investor, I want to make sure that the equity that we invest in has appreciation and that's that's that's separate from the mission.

Well, you have an extraordinary realm of portfolio companies. You sit on some amazing board Citadel Securities among them, as well as ABNB as you say, and you had a long history of being a founder and a builder yourself. Alfred Lynn, we thank you so much from Sequoia Capital once we return. Now they're the private markets and people building within that space. Mayhobib is a key founder, CEO and indeed the co founder of Writer Generative AI platform for the enterprise.

And I've got to.

Ask at this time, May, when you're really seeing the growth accelerate for your business, when you're seeing more and more fortune five hundred businesses want to work with you. What are these CEOs telling you about the landscape, about anxiety about putting money into generative AI when they don't know when the next tariff is hitting.

Yeah, there's no question that selling generative I in the enterprise right now has to be an ROI first story. Because these are the same CEOs who are telling the street that they're cutting op X and you know they're trimming down their teams. So it really puts a big focus on the kind of return. And the reality is actually said it a couple weekends ago. Right there has never been such a big gulf between what technology can do and then what's actually happening inside of the enterprise.

Been very disappointing, very disappointing.

And so you know, it absolutely is a big thing.

Why is it disappointing?

Why is it so hard to bring this once in a lifetime AI exuberance.

To bear on your productivity?

I think we are bringing knives to knives to a gunfight when it comes to actually building with generative AI. People are taking these really long kind of software development cycles, and it is taking these projects to the business, and business is saying this is not really good enough to actually write benefit my work. So we take a very

So it's sort of legacy software is the issue here.

So it's it's the legacy tooling of building right these these products, and so the lms are very very powerful that you need to wrap it with data, with workflow, with no how and that's just not happening right now and most IT departments in the enterprise.

So help measure your success.

How you articulating to those you're going out in pitch and saying you will get ROI with us.

It's a very solution oriented approach. So you know, we're not talking about, hey, buy a full stack platform by our amazing lllms, look at us, how great we are. We're talking about actual end user productivity and end user use cases. So it's very solution oriented.

What's also interesting is you've set yourself apart from a pretty crowded field. I'm going to say, like AGENTICKI and generative AI and the workplace and enterprise seems to be everyone's Lexican right now. But you're coming at it from look, we do something very different with the type of data we're using and the type of model building that we're going through. You're almost saying like, actually, you don't look at a reasoning model, look at our type of model.

What is your type of model?

Yeah, I mean, look at this exhibition floor. It's literally hundreds and hundreds of startups and it's such an exciting opportunity. But when it comes to the enterprise, they are looking at the vendors that they trust, the ones.

That already have their data.

But yesterday I was with a CIO of a fortune five hundred company where to hire an employee, they need to touch one hundred systems, only ten fifteen of them might be a service now application. Right, So we kind of see ourselves as that Switzerland that ties together a lot of disparate systems. They when it comes to building these agentic applications, and it really is that bringing together structured and unstructured data together to build the toolings.

But when we had Jensen Wang come out with his latest earnings. He tried to paint the vision of a new scaling law that's here because of reasoning models. But you're actually taking issue with reasoning models in the general of AI application right now, you think that self evolving models is.

Where we should go. Okny, articulate what that is?

Yeah, I mean I love Jensen and he just wants more tokens, right, And he's absolutely right right in the spirit of what he's saying, which is the revolution is just getting started.

Right, The vast.

Majority of enterprises are still not benefiting from AI, So imagine what's going to happen once they do. Right when it comes to the actual LMS, Right, what we're saying is the path to superintelligence is through self evolving models. Models that can update their training data in real time in response to making a mistake and then getting nudged.

By a user. You didn't get our process right, right.

If we need to go out and retrain or fine tune or you know, rebuild a RAG pipeline every time a model is wrong, we are never going to get to the kind of superintelligence that's possible.

What about the talent that's needed at the moment, We've got a new administration that seems to be cutting funding for science in the United States, for universities and next level education.

Is that something that worries you? Or is talent still rich?

I mean, talent is a struggle no matter you know what the political environment. We just opened up our London and Singapore offices for exactly this reason, to be able to hire outside of the United States. Most of our four hundred employees are here, but as we look to double over the next year, we.

Are definitely going to be growing internationally. What about inorganic versus organic? Every time you come on, I say, whoever startups you're looking at, what other aqua hyers can you do?

Is it still rich pickings for you to buy other businesses?

There are literally hundreds of startups that are doing really, really exciting things. They are finding it difficult to sell into the enterprise. We have kind of risen above the noise, and so there have been, you know, some really interesting things that we're looking at as bolt on acquisitions to the Writer platform.

Come on when you can announce some of them, maybe, but it's always great to catch up with her, the CEO of Writer. Now let's return to where we're going next. Much more to expect from Human x conference, but in the interim it looks for happened to Oracle shares after they had their numbers after the bell yesterday, there was disappointment that eight percent revenue growth that was hopeful was not quite matched.

We're off by five percent.

They did say, look next fiscal year, the year after that, we can have seen fifteen percent twenty percent revenue growth. But in the here and now the disappoint in terms of cloud infrastructure demand and sales return. From Las Vegas, this is Bloom their technology. Welcome back to a special edition of Blue meg Technology.

I'm Karen Hyde in Las Vegas.

We're live at the human x AI conference, and we are keeping arest what's happening in public markets because after the biggest sell off for the Nazak one hundred yesterday in it since twenty twenty two, we want to see what the Magnificent seven is up to. We're currently bouncing around up now four tens percent, but this is not the sort of bounce back that we anticipated after the

Are they feeling exuberant?

Are they worried about what's happening in the public markets and the sell off that we've seen in the likes of Nvidia.

Down a trillion dollars from its highs and market cap.

I think it's a little bit of both things, right. I think people are a little concerned about what's going on in the stock market. But frankly, during the time that I've been here, I see a lot of people excited about AI. I mean, this is a conference has not happened before, so people are excited to be here to see what's going to happen here. And a lot of people probably haven't haven't been together, you know, in this space, and it's there are so many people.

The vibes are i'd say, prely good.

At this moment because the moon music had been still one of Fomo, which is talking with Alfred Lynn about how he's stills been with Elia, who's potentially raising at thirty billion dollars, the ex open AI alumni who are coming out memorialities raising money. We're expecting just these bigger and big e valuations with few and fewer products actually being offered. People are getting in at such an early stage. Is that going to stay with these public market gyrations?

That is a really good question.

I think it's a little bit hard to say, but it certainly is still the case that you only have I think a handful of people that are able to command these kinds of value cuations, these amounts of money without even saying, look, here's my minimum viable product.

You know, like Ilia's company in.

Particular, they have said specifically like we're not gonna show anything, We're I can roll anything out until we get to this extremely high level of a product.

So I think you're not gonna have a ton of people like that.

But you're right that people are asking questions about just in general, like how much money you should be put toward these things, especially if it's not something we've even gotten a hint of what is going to be yet.

You're speaking with international CEOs as well and leaders of AI businesses. How are they viewing the US as a place to be building right now versus France and Mistral or what's happening in the Middle East or in Asia.

Yeah, I mean, I think people are feeling like it's it's not totally clear yet how things are going to shake out. I think there's probably a little bit of hesitation. But also I'm not sure that anybody is really saying like, oh, I'm not going you know, I'm not going to do.

That right now, and we're not worried about scaling.

I mean, I think people should certainly be thinking about it, and for a variety of reasons. It's getting more and more and more expensive to build larger AI models that also uses.

More and more resources.

So I think you see people thinking about, well, how else might we be able to build these things and make them both powerful and not en cost effective and also decempro the environment.

Rachel Metz is going on stage very soon.

We thank you for joining us.

Welcome back to the special edition of Blomberg Technology. We are live from the Human x AI conference in Las Vegas. Apple down two point eight percent even as they unveil well as Mark German unveils that they're going to be bringing us a whole updated operating system across max iPads and indeed iPhones come WWDC in June. Not enough to settle some of those worries about the Siri implementation with AI and indeed what only what's happening with the Google

Stopping any flows of money going from Apple, Google to Apple.

But let's dig into just where the mindset is right now, how a CEO is feeling, how HR department's feeling, how's the labor force.

Sarah Franklin is a person to talk about it.

That's a CEO where it's bringing artificial intelligence within the HR spectrum and ultimately helping companies navigate progress within their business culture, within their business. But right now I have a feeling maybe the AI output is have fewer people.

I mean, Caroline, we are in a new economy. It has transformed from a data economy to an AI economy overnight, and you're seeing the questions of like, what does this mean for my jobs? What does this mean for my people? What does mean for my business? And everything you were just talking about as well, How it's in facting public policy, tariffs, everything with electricity to fuel the economy. The AI economy

And what are you saying that you all one of those people of voices who against the grain came out and said we are going to have new coworkers and they're going to be artificial intelligence. What does that mean for disruption of the labor force? What does it mean for the ultimate labor full state we get we can wake out, which currently is starting to see a little.

Bit of a bump up in unemployment. Yeah, I mean Caroline. In July, we had this vision.

We saw what was coming with AI and we wanted to get ahead of it because we believe that we need to put the success of people as a primary. How do we help people understand how to work together with AI where they are your coworker, and how do you manage AI when it's not just about automation, it's

May have been the writer was just on saying they've got a survey coming out showing that at the moment.

CEOs are really disappointed with.

Generative AI, with the productivity, lack of gains.

How are you measuring success?

How are you starting to show up that it's helping in the world of HI.

Yeah, so this is a thing. This is new.

This is an unwritten book for us, and people don't know what to do.

People are saying, okay, let me just bring in.

AI, but then you have blank slate problems or you don't really know how to use it. So we need to invest in the education, We need to invest in the career pathways, we need to invest.

In how people can be successful.

CEOs willing to do that in this anxiety ridden market where they're just trying to think about the bottom line.

They're willing to invest in their people CEOs are and this is where HR leaders have an opportunity to be that rock for them to lean on and for them to really go forward and know what to do to invest in their people and their performance, because the ultimate judge is how performance is your company, and performance companies are that way when their people are performant, they're engaged, they're passionate, and they know what to do and they.

Know how to use the tools. You can't just throw AI at them. You have to say, this is how you're going to use it, and we want to do this in a way that puts the people success as the primary.

Look.

I'm going to ask a kind of uncomfortable question with two women sitting here at an AI conference and thinking about who generally is in HL departments, But how will women adopting it in particular generative AI versus men? How is it disrupting women more in the workface so the men or is that just a too basic, simplistic idea.

The truth is we're too early to tell like this is all new. What I do love is that it is two incredible women here. A big man is that women have that curiosity, they have the resilience, they have the ability to adapt to change and they say, Okay, this is new, let's bring this in and figure out how it can help me, how it can help me and my team. And having that mindset of how we can use this technology to be helpful is the mindset. We don't want to just automate people out of work.

We have to create it for the.

Better of the world and for the better of business and for the better of people.

That will people be ultimated out of work? Jobs are going to change.

It is no question there is a massive reshaping that every CEO is on their mind is how do I reshape my business? How do I reshape these career pathways?

How do I put this in there?

And we don't There's so many questions we don't have the answers to and why we need courage in the leadership and we need to be responsible, accountable and transparent.

In the decisions that we're making.

And that's what Lattice helps all HR leaders do as they're bringing AI into the workforce.

What about your own talent and bringing people into your own business at the moment, is it rich pickings? Is people we orientate their own businesses. You came from salesforce and they're busy trying to get rid of some talent to bring in more AI talent?

Is it face to get hold of the people you need.

We are hiring at Lattice and we have a great talent pool that's coming in and we invest in our people. And this is something which I'm proud of as a CEO that I know that my company trusts me, and I know that they know that I will be transparent and accountable to the decisions that we make and yes, investing in the people. We need to also as leaders invest in ourselves. Like we are not immune to this. I mean, who's to say that we'll have AI salespeople not or AI CEOs.

Who knows what the future will be.

But we all have to embrace this change, and we all have to embrace AI in a way that it is just a reality. It is in the workforce and the question is how do we meet people the primary benefactor?

What about globally speaking, is there as much adoption and willingness to bring it into the HR space in Europe, in Asia, is there in the United States.

You know, again it's early days.

What I see is from my vantage point as a tech CEO, is that the globalization that AI provides us, it really helps us to battle the misunderstanding that we have when language is a barrier, when culture is a barrier. And that's something that I personally am optimistic about is if we can use this technology in a way to help us collaborate better, remove misunderstanding, understand nuance better.

And that's something I'm hopeful that.

Bringing AI into the workforce, it can help us have better understanding.

You've been ranked to one of the falsest growing companies private companies out that what is holding back growth at the moment. If you could ask anything of the administration of the markets, of the environment, what.

Would it be uncertainty. We are in a very uncertain time right now. And so the way that we get everyone together and go to growth is by being very certain in our pathway and just qualming the fears that we are going to eliminate people from all jobs, say we are committed to a people powered future and we're committed to building your success. Yes, it's a change. It's happening fast. We can't be living in that movie. Don't

Sarah, it's great to catch up with you here. Great to have a wonderful time at human X, Sarah Franklin. That is CEO here in Las Vegas. The music is pumping because we've got a mixture of your foia around artificial intelligence. We've also got a healthy dose of anxiety around these public markets. Andrew Felman joins us now Cerebra CEO, who is in the market of updating ultimately access to compute, but the whole new way of thinking about bringing the data center to life.

Andrew, I ask.

You, in this time where we're worried about an electricity state of emergency, you need power for your data centers. I know you've got efficient data centres, a whole new way of powering that means less power is necessary than the usual architecture and GPUs, but does that worry you an electricity state of an emergency.

Look, I think as a nation, we've underinvested in our infrastructure, including electricity infrastructure, and AI uses a fair bit of power, and even companies like Cerebraus, who have the most efficient compute in the.

Market, we use a fair bit of power.

And so it's not unreasonable that the administration recognizes that power is fundamental. AI is fundamental, and that they have taken some steps to I think, to eliminate some of the red tape. It takes a long time to bring up new power plants and to deliver those to new data centers.

Has it been.

Holding your growth back on you?

You've just been deploying in places like Oklahoma City in Montreal, But has the power infrastructure.

Of been an issue?

Absolutely?

Where these facilities are and how limited and how scarce they are is limiting everybody in the day right now. These are hard to find, they're expensive, they're driving up the cost of AI. About half of the cost of AI is.

Attributed straight to power.

And so I think if we can do a better job at the infrastructure level than as we provide more compute right across the country, we will benefit from from AI as its price drops, Well, let's.

Just remind people of your CS three system. Ultimately, this is a way of bringing compute in a different way with a much smaller surface area ultimately than usual tech stack and the usual center GPUs.

How is that selling into this narrative?

How are you able to distinguish yourselves because you need less power, because you need less space as well within a data center.

That's right, So we chose a very different strategy.

We chose to build the world's largest chip chip fifty six times larger than any previous chip. That meant we had to move less information and that allowed us to use less energy. And we are a washing demand and yeah, we're buried in demand right now. Well, we just announced large customers like Hugging Face, like Alpha Sense, like Perplexity,

Mistral a global player over in France. You have had a lot of exposure to I mean least and player G forty two. How are you changing that exposure because there have been some anxiety too dependent on them as a customer.

Well, I think the way you catch three very large customers is to begin with one very large customer. And we begin with a strategic partnership with G forty two and that's been an extraordinary partnership and they've been everything

Is that door wide open when you've got such rules as the AI diffusion rule, which potentially limits you selling into allies as well as so called adversary countries.

Look, we've been a big, big proponent and work closely with commerce. That's a confusing rule, to be honest, and it's if I understand correctly, it's not quite a rule. Yet it's a recommendation to be a rule, and it will come in in June. I think as a rule, I think there are other ways that we could have achieved the same goals, but we support would commerce. Department of Commerce says, and if that's the path, then that's the.

Playbook we use.

Think it will be or do you think that they'll navigate away all of it?

My view is, I think we can achieve the same objectives with slightly less intrusive approach, and I hope they navigate away. But we weren't asrebrase selling to China long before the rules said we couldn't. We thought that was the right thing to do, and so we chose to follow our ethics.

So we will do whatever's right.

How will you do what Seva's right within these public markets, who, of course are eyeing an IPO.

Is now the right time?

You know? I think there's a lot of things when you go public.

You can't control.

You can't control what the president says, you can't control sentiment. What you can control is how you run your company every day. You can build extraordinary technology. You can treat your people well so they want to stay. You can hire some of the best people from around the world.

You can't control others innovation, we can, and I'm interested in the innovation that Deep Set brought and the idea that maybe we'll have more and more powerful models and less.

And less in compute need.

Where do you are we ultimately just going to scale the applications.

I I think the h that wasn't exactly what Deep Deep Seek showed. I I think what deep Sea showed was that several hundred people and a fair bit of compute, maybe less than others had used, but a lot of compute could produce a very interesting result in the open source community. So building on the work of others, right

Down, our market grows.

And it's done that every single time for the last fifty or sixty years, and every single time the public markets have thought, oh, the market's getting smaller, but that's not actually what happens when the cost of compute, when we can do more for less new applications urgeon.

And this is making the market bigger, not smaller.

And you'll be there with the offering of influencing compute. We will Andrew Fellman cerebra CEO. Delight to have him here, Thank you. Now coming up so much more poolside, CEO going to be discussing the future of his business as he focuses in on coding with generator of AI. Jason Warner joins us. Now we return to what's happening in the nasac and the socks right now. As we know, tumult has been upon the tech sector. We're now up about a tenth of a percent and the Nazak one

This is of bluembog tenology.

Welcome back to this special edition of Bloomberg Technology. I'm Carin Hyde in Las Vegas. We are live at the Human XAI conference, and there is a tone of anxiety in the public markets that maybe plays into the private sector a little bit when you look at a magnificence seven actually managing to be now up a percentage point having been in the red in earlier trade. We tried to understand what the impact of an energy state of crisis is for the United States state of emergency, how

It's not stopping, it's not cooling down.

Jason Warner is here Pulside CEO of course, previously CTO of GitHub, which is now so embodied within the area of helping coder is helping engineers. You are building basically superintelligence for engineers going forward.

How are you doing that?

Well, first, great to be here, thanks for having me. And yes, we're building towards a human intelligence future where artificial intelligence the humans live side by side, but artificial intelligence can do most of the things that humans can do. The way in which we do that is we have some proprietary research techniques we have dubbed them reinforcement learning

Will that displace the number of engineers we need or ultimately free them up to do more? How are you thinking about augmenting versus replacing?

Yeah, I mean, I think the conversation of replacement is always one that pops up. But I tend to look at these things about what we're going to be able to do more of, what we'll be able to do faster. And this is where I get excited, because I think about what software does currently in twenty twenty five, It

You're not the only CEO we've recently spoken to who's thinking about giving super intelligence and superpowers to an engineer. And look, we just have Reflection AI on the store on the show yesterday.

How is the space?

How is there an awful lot of startups trying to do the.

Same thing or different things.

Distinguish yourselves from the competition.

They're all slightly different. The idea here with Poolside is more akin to open AI and Anthropic in that we are going after the thing that we might call AGI and eventually ASI. And so what we are at our heart is a frontier AI company similar to open ai Anthropic, and we are pushing the boundaries on that. We're going via software For technical reasons, we don't need to get into that. It's very technical reasons, and then many other folks end up in what I would call the AI

So you see yourself as an infrastructure player.

Well, I see myself just right next to open AI and.

Anthropic Okay, do you see yourself as a valuation perspective right next to them, because tell us about who you are and your funding needs and whether you're out there raising money to.

Do this well. Building artificial intelligence models of the capital intensive game though, so at some point we always have to consider how much compute capacity we have, and that is a proxy for how fast you can go or how big you can go. So that's always going to be a topic. But right now, we're really happy where where we sit.

So you're not raising money.

We're not raising money right now.

What about compute? And is what is holding you back right now?

Is it energy? Infrastructure? Is it electricity? Is it access to data centers?

What is it?

I would love more time, Yeah, I would love more time time for us to go do more experiments But for the thing that I think about holding us back is really where we are in the world. If I cannet this out into a different way, which is, if we were in a world of infinites infinite access to energy, infinite access to compute, and infinite access to data, we would be at AGI or ASI already already. But we don't have an infinite world. We have a constrained world,

At the moment, where do you get your compute from?

We have partnerships across a wide variety of folks, although our primary clusters are the Amazon Aws web.

Services, and is that largely US placed.

What's interesting about you is perhaps people got you modeled up with a French company at one point. I know that you had team members. There are US domiciled. Where are you thinking about your future?

We've always we are and always have been a US company, though we have a presence in France, we have primarily hired our AI researchers across Europe and in the UK. And also we have an office in Paris, which the entirety it happens to be right now because they're doing an on site which we do once a month.

But we're a US company, US company and wishing for more compute alongside a lot of other US companies. Jason Warner has been great to have him the poolside CEO, keep a track of that company in the private sector. Meanwhile, back in the public sector, we are looking at shares the NASDAK stocks that.

Are in the chip sector in VideA as well. A very volatile day. We're currently Apple quarter percent and then Asset one hundred.

After a brutal sell off yesterday, the worst that we've seen since twenty twenty two. Some we can have to index is still underwater by some four tenths percent. Remember Oracle numbers as well, perhaps giving a bit of a dampling spirit to ultimately the demand for AI and how quickly we can get data centers on track. Interestingly, they're still pointing towards fifteen to twenty percent revenue growth for the next fiscal years, so pointing that really the demand

Couple of months.

Now, that does it for this edition of Bloomberg Technology