From Mahart where Innovation, Money and power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Live from New York and San Francisco. This is Bloomberg Technology and take it outperforms. The stocks jump on the jumbo FED rate cut.
We talk megacaps on the move.
Plus Apple gets an EU warning to open up its iPhone operating system and Elon.
Musk's X is back on in Brazil.
How the platform bypassed a ban through a software update. But first let's check in on these markets because risk assets are up and to the right, we've finally found that bid post the FED rate cut of some fifty basis points and we raw high the best day in at least a month for the Nasdaq one hundred up almost two and a half percent, and Crypto two getting its mojo on four and a half percent. If you're looking at Bitcoin and ed, you're going to look at the megacaps.
Yeah, I mean the biggest percentage end points gainers on the NAZAQ one hundred are the megacaps. And a lot of investors have come on this show and said when it comes to tech, there will be a recalculation around valuation. But actually a lot of the conversation this morning is we're going to avoid a recession, and that always comes up in the context of megacaps.
They're a very diverse group, particularly Tesla.
Right, how much is Elon Musk talks about the impact of higher rates on EV sales? Not that Elon Musk and Tesla are going to be focused on the business of selling cars for much longer.
Carry That's the one thing that we've got to be keeping an eye on when it comes to Tesla. When it comes to cars, the robotax is the future. But for the here and then now, should megacaps be roaring. Let's talk to Zachary Hill, head of portfolio management and Horizon Investments eight million dollars in assets under management. We're going to discuss first and foremost the rate cut. What does it mean for these names that we've been so used to leading the market higher?
Sure, Carolin, thanks for having me.
You know, it's been quite twenty four hours, you know, after that supersized rate cut, which most people in the market US included expected to be fifty basis points, although economists were skewed more towards the twenty five camp.
You know, we saw some mixed price action and overnight it.
Looked like we were going to get a biable dip, and coming in this morning, things look quite a bit different. And so we do think that overall the trend is higher. Kind of look through some of this short term noise and as it relates to the top of the market, we do believe now for the first time in about eighteen months, that the market could really broaden out in
a meaningful way. And so, you know, not giving up on the AI theme in the megacaps in general, they're outstanding companies, but I do think we have a little bit of a window for the rest of the market to.
Catch up here.
Okay, when you say broaden out, you mean small caps more broadly, or is there a way to broaden out the technology investment theme.
Yeah, we like doing it across both vectors.
Actually, you know, in terms of the expression of the AI trade, kind of moving away from the semiconductor because if you just look at the kind of the charred patterns there and just the overall narrative, it seems a little bit exhausted relative you know, to some other some of the other players in the growth space. Also, I do think, as you mentioned, small caps, you know, they have a window here where they can work. Regional banks
is another part of the market that we like. That's probably going to be more of a trade for us. But we do think, you know, the fact that rates are coming down, growth is still strong, and the next move by the FED is going to be a cut. We can quibble about that's twenty five or fifty when that when that occurs, at the end of the day, we don't really think that matters as much for the
broader picture. So those are two different areas we're playing that broadened out theme within US equity exposure.
So, Zachary, with that in mind, why is it the semiconductor names and mega caps that are rallying hard this morning?
Yeah, that's that's a great question, you know, and I don't have a really spot on answer for you now. I mean, I would just say, broadly speaking, over the last three weeks, we've seen a lot of volatility in these names, you know, speaking for the kind of the most popular stock in the world in video. You know, we saw earnings they were really good, but not as good as people have come to expect. We got kind of a delayed reaction on that stock the following week,
and then reverse the following week. So there's just been a lot of back and forth, broadly speaking, and that's another reason that we think broadening out makes sense, just because the volatility of this trade has gotten higher, it's gotten more difficult to hold, and so from a risk adjusted perspective, you know, we think it makes sense to look outside of just the tip of the spear that's really been driving us for the last eighteen months.
Your second point earlier is that rates are going to come down, and we can debate the increments going forward and look at the dots through the end of next year. But a quite reasonable question for many technology investors is what had actually changed between July and yesterday, Right, A fifty basis point cut yesterday and nothing through the summer, And that, for you guys in the markets must be difficult to calculate.
Yeah, it is difficult, and you have to play a little bit of criminology with what's going on, you know, within the FOMC, I mean, you know, our our read of it is, I think Chair Pal, who's more dubvish than the committee.
More broadly, he wanted to cut rates in July, but couldn't.
Get anyone there, and so you know, the actions that we saw in the blackout period to kind of move the market towards a fifty basis pointcut, that that was indicative of Chair Pal kind of trying to make up for you know, what didn't happen in July. You know, I think one of the reasons that Stockston rally initially yesterday after everything was released in the afternoon is that it's pretty clear the committee is more split than we thought.
And so, you know, the almost half the committee wrote down only one further cut you know, this year, which is quite a bit different than where the market is priced, and so, you know, I do think there'll be some back and forth on that, but broadly speaking, you know, the messages if the labor market continues to slow down into an area where we start to get concerned, the
FED will be more aggressive. And the fact that we have that FED put back in scope, something we haven't had for about two and a half three years, I think that's really important thing that you can lose sight of if you're you know, just in the day to day trying to explain hour by hour.
Moves, Zachary.
This isn't just the central Bank to the US, it's the central bank to the world, and we're seeing risk assets rally across the world. What about European tech ASML the best performer from a points perspective in Europe today?
What about Japanese tech?
Yeah, I mean, we do continue to think the story is better in the US than abroad. You know that a lot of that just has to do with the innate innovation and the structure of our capital markets versus the rest of the world. But we do think there's some opportunity in Japan. You know, that's more of a medium term story in terms of structural reforms and a really really cheap currency that can be a tailwind to
US investors. We're starting to see the end correct, you know, quite a bit over the last over the last few months, and we think that is a favorable trend that will continue there. But broadly speaking, we do we do like to express this theme more within the US, you know, talking about the European angle more more broadly. I do think it's a little bit wild that there's only about a twenty five percent chance that the ECB cuts rates
in October. You know, if you look at the growth trajectory, you look at the inflation dynamics, I really think they've been just waiting for some air cover from the FED, and so I think that's something the market may start to think about, you know, over the next few weeks. And you know, from a currency perspective, certainly that wouldn't be you know, beneficial for for European equities.
Zachary.
Let's conclude our conversation with an important question for technology investors and the technology industry around the world.
Recession or no recession.
Yeah, this this one's pretty clear, no recession.
You know, our framework has long been do not bet against the US consumer that is employed. So we've been focused, laser focused on the labor market, and our read there is we're just coming back to normal from a period of extreme strength. Certainly, we're paying attention to the data flow as they come in and marking that.
To market, you know, every day.
But you know, broadly speaking, that has been our view and continues to be our view. And we think that plus the fact that the next move from the FED and other global center banks are going to be cuts, is going to buy as equities higher into the end of the year.
Zachary Hill from Horizon Investment. It's great to have you here on bloom Bed Technology. Thank you very much. Like coming up on the show, we joined by the Latvia president Eggars Rinkovic about his visit to San Francisco Silicon Valley meetings with technology companies now in the markets carried. There are some single name moves that we've got to cover.
We do in Intel, the Mobile I are among them.
Ed Intel oup almost three percent Mobile I as you'll see jumping some fifteen percent. This is as it seems, Intel will not be currently planning to divest a majority interest in the microsoftware and hardware tech for autos. They believe in the future of autonomous driving technology.
This is brumot technology.
Apple it's been warned by the European Union to open up it's highly guarded iPhone and iPad operating systems to rival technologies or eventually risk some significant finds under its flagship digital antitrust rules. Plimos, jian Or Picelli joins us Now and John. How serious is this warning?
How likely our fines.
Hil I mean, this is not an investigation yet. It's something called specification proceedings, meaning that it is a step shy of an actual investigation. In a statement, the Commissioner for Competition, Margaret Vistaya, said that the intent is guiding Apple on the way to interoperability, so there is still some time for Apple to disconcerts. For sure. If nothing changes over the next six months, there might be steps, there might be consequences, but right now it's not as serious as it could be.
Yet genders some misunderstanding about the technology side of this story. For example, in Europe, Apple is held back some of its latest features due to compliance what it sees as a compliance issue with the DMA. But the idea is not that you take a Samsung phone or a Gaomi phone and you suddenly have iOS on It just explain the basics of what they want Apple to do.
But what I understand is a couple of things. It is essentially allowing developers to access features of iOS that right now work only with Apple software. I think for instance, of Siri, Siri is of course something that only works with it in the Apple ecosystem. Technically, you could imagine a developer wanting to access some features so sirey for its own app on of course, the iOS ecosystem or payment features. Some payment features only work within Apple apps,
Apple software. And that's another thing. One thing that also the Commission addresses is interoperability of devices against Some features, for instance of Siri only are accessible to, for instance, devices such as the airports or other Apple types of gear. And so we want, I mean the European Union would want ideally that to change and be accessible to other devices.
Bloomberg Gimbobicelli out of Brussels.
Thank you very much. Now we have a visitor from the European Union. Edgar Rinkovic, the president of Latvia, is in San Francisco. He's meeting with tech companies like open Ai, Meta and Google. He'll also meet with California Governor Gavin Newsom an investment firm Apollo. President Rikovich joins me here in San Francisco. Good morning, President, Thank you for being here. You heard from our colleague in Brussels, the latest piece of EU oversight of a large American technology company. There's
also sort of a personnel consideration. Hennah Verkinen will become an important leader in Europe when it comes to tech.
What is Latvia's attitude to.
The policy side, but also the new people at the top.
Well, actually we have heard the proposal from the President of the European Commission about the new commissioners. I do believe that this is quite balanced proposal. But let's not forget that European Parliament still needs to approve each and every commissioner. There is going to be a grilling. But I do hope that the new Commission is going to be very much focused on competitiveness of the European Union.
I think defense and security is going to play a huge role also when it comes to the new budget. And then indeed, we have new issues. You already mentioned about a couple of my meetings. Also we have those.
Well those meetings, Miss President meta open Ai.
Those are today.
I'm just starting from this morning meeting with others.
What's your ambition for those meetings, mister President.
There are actually two big issues. One latterly is striving to become one of the i would say pioneers and leaders of artificial intelligence in the European Union. We are now creating our National Artificial Intelligence Center that is a private public partnership. Actually the idea started from security concerns, but now we have expanded it not only to include security like deep fakes, like interference intellections, but also in order to create a competitive environment and two take let's
say lead in this matter. And one thing that I'm going to discuss and look at is the way how we can cooperate. We already have very good cooperation with Google withri meta, and we very much hope to expand it. So that's one second. Indeed, I do believe that it is very important that we discuss how we are going to address artificial intelligence social media. You know, all those discussions whether we should view them as challenges or opportunities.
I'm still trying to find a way how to find a middle ground and being the part of the European Union, of course, to influence also the.
Discussion President, is more regulation necessary when it comes to AI and social media?
Well, this is.
A very tough question. I do believe that if we look at some challenges have seen the use of social media, artificial intelligence for this information de fakes, interference in elections, I think we need some framework. But at the same time, and this is sometimes a challenge for the European Union and about the European Union. Let's face it, we sometimes back in Europe get overly regulatory. Sometimes we believe that here in the United States there is too much liberal approach.
So from that point of view, I would say that the balance to you some regulation, especially when it comes to serious issues the crime, political interference. Yes, we do need rules, but let's not overreact. Also here let's.
Talk about serious issues at the moment that the you and your country in particular faces when it comes to Russia and armed Russia. Understand and drone recently crashed in Latvia. How should NATO respond to this sort of technology two drones?
Should they shoot them down? What is your view?
Well, actually, this is a really very good question because also as part of my visit I've been in NASA, we were talking about the corporation in Aronautics, in drone industry. My country also leads drone coalition that is supportive of Ukraine. But when we talk about defense, I do believe that we currently lack common approach in NATO. We have already three countries my country, Latvia, Romania, Poland where we have
seen drones crushed. Investigation is still ongoing, but there is a great reason to suspect that Shahid type drone was actually flowing applying from Ukraine. Seeing wellados sound simply crushed. My belief is, yes, we need to shut down those dronts. We need to give more air defense equipment to Ukraine. But also back in NATO, we are talking about the need to increase also NATO presence when it comes to
air defense in so called eastern flanks. So yes, NATO must adapt to the new reality and we must shot down drones. We must protect the territory of the alliance.
Mister President, Latvia has has a role here because of its location, it's geographic proximity to what's happening. A big question asked of leaders across the European Union is what to do next and weather. From a technology and weapons standpoint, there is an argument to approve the use of sort of longer range technology to go into Russia in support of Ukraine doing such an action.
What is your policy on.
That, well, I think it would be very surprising if I would be saying that we have to be cautious. No, the longstanding view of Latin government, my personal view is that when it comes to Ukraine, when it comes to support for Ukraine, we must allow using all weapons, all weapons systems, that we provide to Ukraine unconditionally. I don't
believe in that talk about escalation. Yes, we hear a noise from Moscow, but if you look back at the beginning of the invasion in February twenty twenty two, we have heard that kind of messages from Moscow, and actually what is happening. When Russia escalates, Ukraine is not able to respond. But when Ukraine gets weapons and is able to respond, actually Russia is not escalating, It actually de escalates.
My own firm belief is that we must change the narrative from we must help Ukraine deal or whatever it takes, or how long it takes, two we must help Ukraine until.
There no diplomatic breakthrough to the deadlock. We've got much of that being discussed in a presidential election race here in the United States.
I think that there is already some political process. We had peace summit in Switzerland in June. President Zelenski is talking about another peace summit, maybe somewhere in November, maybe after US elections. But I do believe that diplomatic breaks through or political process can start only when Russia sees that it cannot move forward. That we are supporting Ukraine and that it needs to sit at the table.
It's not.
For Ukrainians currently to call the first shot, it's actually for Russia. But I also think that it's not going to be any political process until yes elections. Most probably we can talk about some kind of political process or some kind of diplomatic efforts next year. But here I think that we also should not make mistake. If we start, let's say, putting some kind of limitations on Ukraine, then we are not going to see Russia willing to sit at the table. Just the opposite.
This present, we have less than a minute. You'll meet with Apollo, You'll meet with open Ai. I'm curious if you want to attract investment infrastructure like data center talent in your country.
Absolutely, that's one of the things that we are going to talk about attracting investment. Yesterday I had the event where some of our startups were pitching for investment. I think they were doing great. There was quite an interest, and yes, I will be doing my best bet also to attract talents, investment. Get partnership is open AI and other companies.
We wish you well with those meetings.
We thank a few of time today, President of Latvia eggers Nkovic.
It's time for talking tech and first up.
Open Ai has hired former Corsera executive Leah Belski as its first General Manager of Education, leading the AI startups efforts in bringing its products to schools and classrooms. Belskuwer's formerly chief revenue officer of Courserah Class. Microsoft president Brad Smith issues a warning of US election meddling, telling the Intelligence Committee that foreign interference will likely surge in the
final forty eight hours before the election. The hearing comes after a Microsoft report found Russian efforts to influence the election and Germany's EV market plunges, with deliveries falling sixty nine percent in August. Carmakers now calling on the European Commission for urgent relief and revisions to its fleet emission targets that could have Europe's auto industry facing hefty fines.
Welcome back to Blue Meg Technology. I'm Caroline Hide in New York.
And I'm ed love Low in San Francisco.
Le's get a tech on these markets, said, because we are powering higher on the back of that FED rate cut, we are now having a very strong day, best since in a month. Really for the Nasdaq one hundred. But so too are global stocks feeling the risk on vibes. And we're looking at the European tech industry doing very well. They're closing up their training on the day, we're up three point four percent for that part.
Of the stock six hundred.
Move on, look at the individual movers because look, we've got the megacaps that we've known and loved and have done so well even in a rate higher environment, still doing well as rates get cut. We're up five percent for Nvidia, where Ali Baba. Seeing Chinese names really rally too, and we're higher since May twenty twenty four for this particular name. And I leave you with PayPal because there
are some individual news around as well. PayPal, that button is going to be there if you're buying with crimes. So then sealing a deal with Amazon Mazooho really standing like that. They are so important to the broader payment ecosystem.
What have you got ed? Let's head out to Latin America.
Elon Musk's X has found a workaround to bypass its suspension in Brazil and paying the price. X was suddenly back online after a software update used cloudfare ip addresses to gain access Brazil's top called band X last month after it refused to abide by certain standards. Now the same court is implementing a nine hundred and twenty thousand daily fine for skirting the band. Bloomberg's Andrew Rizzardi joins us from Rio de Janeiro.
Okay, let's start with the workaround. How does it work?
It should have been a providers X change the way it routes traffic on the site, and it's now using IP addresses that are shared with really popular Brazilian websites like bands and even government banks and even government websites. So it's very hard for regulators to clamp down now because if they do, that would imply that lots of other popular websites would also be invertently blocked. So it's really put many regulators in a difficult position here.
X has responded a spokesperson saying was inadvertent and temporary service restoration to Brazilian users and we expect the platform to be inaccessible again in Brazil soon. But this is hest defines being laid down.
Is this usually the response from the Supreme Court.
The Supreme Court has specifically one Supreme Court judge Alexander Nimris has been locked in a month's long feud with Excess owner Elon Musk. The Supreme Court judge is heading this campaign here, which he says is needed to clean up the Internet and really take down a lot of vitriol hate speech that has been really really spreading over the last.
Few years in Brazil.
You know, Musk, for his part, has often referred to himself as a free speech absolutists. So these are kind of like two trains clashing with one in each other. And this is just the latest twist in this long standing feud. The Supreme Court has applied fines and on must companies already for over content moderation, and we're seeing an increasingly harsher tone and more threats to apply of initial finds that we're seeing today.
Andy, you're in Rio.
How is this story being discussed in the local press? What does social media use as a Brazil make of all of it?
So yesterday or in late Tuesday or early Tuesday morning, when these reports that XS coming back, you know, this really stunned a lot of users in Brazil because the band has been really widespread and for most aportutions, we just simply not have access to the site anymore. So people were really shocked. And there result of this speculation that you know, maybe the band had been revoked, maybe maybe Elon Musk had you kind of started to obey the court orders and that other perhaps the band had
been revoked. So this is you know, a lot of people were excited when it's back, but now you know, we're kind of seeing that we're not may we may not be any closer to seeing it come back. And here in Brazil you.
Might be back with you soon, Andrew Rossatti, thank you very much. Indeed, now Amazon has announced it's launching a new AI assistant to online merchants's codenamed Project Emilia from Albany Mergs. Matt Day joins us Another Day, another female name for an AI generative AI chat.
But what is this going to do? Matt?
So this one is any of that Amazon sellers. That's the you know, millions of people, you know, small businesses in the US and Europe, a lot of manufacturers and direct to consumer outfits out of China that sell on Amazon's site. Right these folks account for most of the sales Amazon makes around the world.
And now there's a tool that.
You know, if a seller has a question about their inventory or what might sell well for the holidays, they can just you know, use the chat but interface we're also familiar with by now after chat GPT Matt.
We kind of take for granted how Amazon dot Com works, Right, if you're a consumer, you're used to using the Prime app, then you might not ever think about the merchant or the seller. How does Amazon kind of invest in them try to keep them on side. My understanding is like, if you're approaching a busy holiday season, you asked the tool that was showing on the screen, like, tell me how to prepare for this?
How do I run my business?
Yeah, behind the scenes, Amazon is in sort of a fever competition for sellers. And we all remember the rise during the pandemic of Shopify and sort of direct to
consumer sites, brands selling on their own you know. Obviously eBay is still out there, Walmart is courting independent merchants that sell on its site, so it's target So there's really a race right now to lock down folks who just want online shelf space for lack of a better word, and so Amazon, you know, has clearly felt in the last few years despite their leaders the largest online marketplace, that they have to keep investing in tools for those
sellers or else they might go elsewhere. Right, if they're seeing returns on shopifire returns on Walmart, you know, maybe they put a little bit less effort into Amazon.
That day for the latest We thank you.
Meanwhile, coming up, we're going to be hearing from Gary Gensler and the potential risks he sees arising from the use of AI that's in finance. Meanwhile, talking of other areas of finance risk on and the world of crypto. Right now, Bitcoin currently up almost five percent. We're are clips in sixty three thousand having a strong day post those fed Ray cuts.
This is blue meg technology.
If too many brokers and money managers use the same AI for work, it could set the stage for market turmoil. According to SEC chair Gary Gensler, who's fokes to Bloomberg's remain boss stick and I still yesterday, I have listened to this.
We've been automating for a long time. I mean, I'm told that well over one hundred years ago there were debates on whether to let telephones.
On the floor of the New York stock chain.
So automation is a good thing overall, but you're absolutely right, we have to also make sure that we still protect the investing public. In terms of artificial intelligence, I think it could bring greater access and promote markets, but at the same time we have to guard against.
Fraud and frauds.
Fraud, and whether you're using an algorithm to defraud the market or your human is doing it, it's against the rules. I do think that there's a challenge that the financial crisis of the future might be that we say, oh, my gosh, we were all relying on the same model, the same algorithm, the same data. That's a challenge that is on this guy's mind is how we sure there's still a diversity of views sort of amongst it, that the algorithms compete with each other, rather than all relying
on one. You know, you know, if you ever saw that movie two thousand and four and everything one hal or one big computer, like Scarlett Johansson was that romantic interest in her and then when she went offline, all eighty three hundred and sixteen of her romantic partners were heartbroken. I don't want that to happen in the financial sector.
Weaving romance into the world of regulation. Sec j Gary Genzer there speaking of AI and finance fintech style up Intelligent Alpha is launching is a new investment firm designed to capitalize on you guess it, artificial intelligence. Yesterday we mentioned that it is offering a chatbot powered ETF, promising to harness the brain power of the likes of Warren Buffett, s dudyed Drcamilla, David Tepper, and Moore. Please to welcome
Doug Clinton, founder and cy of Intelligent Alpha. So you have an investment committee of chatbots claud chatchept and they're like, what inputs have.
You been giving them? What have you been getting out to design this ETF.
Well, we give them inputs to help them understand how humans actually think about investing. And I can speak directly to what we just heard Chairman Genzler say. I mean, Carolyn, this is a question that we get from investors, actually, won't AI just all do the same thing? And our research, our studying over the past year, is that the answers no, they don't, because our technology really depends on the inputs and the philosophy that you try to give the AI
to act on its investments. With so you can make it think like a Warren Buffett and be very value conscious, or you can make it think like an aggressive growth investor. No matter what you want to do, AI can be adaptable, and I think that's why we're not going to see AI sort of do all the same thing. It's going to be very different like human investors are.
So I'm assuming you've been testing this all in beta before you offer the ETF to the world. This investment committee, I'm sure you will come clean with didn't get the FED cut right. Thought it would be a twenty five basis point cut. Don't get me wrong. A lot of people got it wrong. But what have they been getting right? What output have you seen in terms of their stock picking that's been interesting?
AI is fallible.
It did get the rate cut wrong. It did predict that we'll get a skip in November, which I still think is interesting. I mean, a fifty basis point cut. Maybe the FED was actually kind of thinking there's a chance where we just want to be aggressive and see how things go and maybe they will skip to AI's prediction.
But in terms of what.
We're seeing from AI right now in our first fund that we just launched, yesterday, the Intelligent liver More ETF the tickers livr. AI is focused on a few different areas, so AI is actually one area it likes, It likes itself. It's also focused on Asia, Latin America and defensive stocks. And so what we've created, or what our committee has created, really is a portfolio that's sort of balanced between offense
and defense. Offense with those AI names and then defense with things like healthcare and consumer stables.
Hello, Doug, familiar face to the show, new name. What does Warren Buffett, Stanley Drucamilla, and David Tepper think about this?
Have you spoken to them? Good to see to ed.
I have not spoken to any of those three, and I'd be curious to hear what they do think of AI as it pertains to affecting the investment markets. And the reality is this, though, when we think about what does the future look like, I mean, we're the first form we think to use LMS to try to invest completely with no human intervention. I think they would be interested to learn about how they do think like humans.
And if you read the readings of a buffet, if you read the readings of Stan Druckenmiller, a lot of what they talk about is really managing emotion. That's one of their secrets, and I think that's one of AI's superpowers.
I actually really want to drin into the mechanics of it.
You know.
I think about my own interaction with generative AI tools, and they can only recall what's within the database that they were trained on.
Most of the time.
It's like asking what the weather is to GBT voice assist, and it's saying, well, I can't tell you what it is right now, only what it has been historically. How does that work in an investment case, like how would Warren Buffett have approached one particular name.
Just explain the system.
Absolutely, There's two key pieces of information that we input into the models that we use. One piece of information
is sort of an investment selection universe. So if we want to build a portfolio around large cap US stocks, we'll have that data set and will include things like historical performance, will include forward estimates, and then in addition to that, will also include a philosophy that we sort of curate again going back to if we want an AI to think like Warren Buffett, we curate a philosophy around that based on his writings based on things he said,
and when we combine those two pieces of information, which can be current information, that's how we end up getting our committee to act.
That has been innovation going on at all of these large language model providers. We think of one now happening with open AI and the idea that they're going to think, how will your own investment committee improve a just change as innovations happen in the underlying large language models too.
Yeah, Caroline, I think that's one of the most exciting parts of using AI as an investor. And I know Sam Malton has this quote which is a little double sided for us, which is the models you're using today are the dumbest models you ever have to use. So the disappointing thing is he's calling these models dumb. We don't think they're dumb because our testing shows that they're very effective as investors. But the upside to that is that these models only get smarter from here. We think
about one advanced reasoning capabilities. I think as we see that kind of permeate these other models that we use, like Claude, like Gemini, I think the committee continues to get smarter over time.
Doug very very quick, do you pay your license from the LM providers.
We do use their APIs, so we do pay for the usage of that technology.
Intelligent Alpha CEO Doug Clinton, good to see you again. Thank you for coming back on the show. Some more news and Ampare, the chip startup back by Larry Ellison's Oracle, is exploring a potential sale. This according to sources who say the chip designer has been working with a financial advisor in recent months to help field takeover interests, and the Ampare is open to talking with a larger industry
player about a possible transaction. John Collison co founded one of the most valuable private companies in the country, Stripe. Now Collison and his team are expanding the company its offerings while continuing to shrug off the question of an IPO. He spoke about that on the David Rubens Sin Show.
Listen to this.
Some tech companies. Maybe a lot of tech companies go public a bit too early. And what I mean by that is in Strip's case, I mean we still see tons of opportunity to change and.
Grow the business quite a lot.
We're still constantly inventing new products and developing new business lines. And also you can do that in the public markets. But I think culturally we.
Have ended up.
You know, you look at analysts following public companies and obsessing over guidance and what will be this quarter and things like that.
Culturally we've ended up. I think in a bit more of.
A world where public companies are suited for the extract stage of the sigmoid curve rather than the expand stage.
Stripe co founder or president John Collison. There you can catch a full interview from the David Rubins sideshow at Bloomberg dot com. Let's talk elsewhere and venture because virtual care clinic mini Health just finished its Series B funning round back in April. If a sixty million dollars was raised into Day's quick.
Growth is luring some really high profile.
Investors, including the likes of actor Amy Schumer, designer Tory Birch, not to mention a whole raft of tech names you will know and we've had on the show. Mindiell CEO, Joanna Struber joins us. Now it's a who's who in what is a special purpose vehicle that was set up for what reason? Why did you want these women, in particular Johanna to be signing up to your to back your company.
So over seventy million women are in perimenopause and menopause, and it is a massively underserved market and essentially women don't get the care that they deserve to help them to thrive as they age after they have children. So what we really wanted to do is go out and target the smartest women in the country in business, entertainment athletes and get them to all help and join in our cause. And we really do view this as a mission.
It is both a company that's expanding really rapidly, but also a mission to serve women, and so we wanted to have them to join us.
You've got an investor group.
Now, of course women a thirty five to sixty plus forty percent people of color, You've got diversity. There is this marketing. Are they going to go out and be your biggest backers, Are they going to preach the world of mini health or what are the reasons you go to these particular people.
Well, so part of it is marketing. They give us feedback. There are patients. They give us feedback on what we're doing well and what we're not. They give us suggestions on AI and how we use AI.
To better scale our product.
We're getting marketing advice from really amazing celebrities who know how to build a brand. So really what we're doing is getting their expertise as well as their support while we're building the company.
John, it's almost a year to the day since you actually announced your Series A and at that time, the big focus for you guys was I guess onboarding clinicians who had expertise in women's health. How much of that is now the focus in growing the business or have you moved on to the technology expansion.
Yeah.
So we have over two hundred providers, probably two hundred and fifty providers right now who are providing care, and now we are using technology to make sure that we scale their care appropriately. We use AI to make sure that we monitor them, to make sure that we give them the right feedback. We add new protocols, so we are using technology to scale the care. But essentially we are fundamentally a care company. Our job is to talk to people, to have those conversations and listen to women.
So it is not just about technology.
The technology is enabling us to scale, but we really focus on the care that we're providing, not solely on technology, but instead on making sure that our providers are able to best listen and take care of the women who come to us.
Yeah, increasingly in our household we have a digital relationship with our healthcare providers, you know, either through an app, but always the issue is the insurance component, particularly in this country.
How do you manage that?
It can be a real frustration, particularly in the United States, when people just want digital care.
Yeah.
So we care deeply about democratizing access to great care and the way we have to do that is through insurance coverage. So by the end of this year, we should have seventy percent of all women on PPO plans covered under our platform.
And next year we will have Medicare.
So we just care deeply that women have access to this care and insurance needs to pay for it. So that is how the entire company is structured.
Sixty three million Series B five million SPV. That's a lot of money where to allocate. Is it talent, is it actually getting out then lobbying, informing people that you need to make these deals when it comes to insurance.
Yeah, it's all those things.
I mean, it costs us millions of dollars just to set up the platform, to get the insurance companies on board, to set up the credentialing, and then to create our care protocols and be sure that we have doctors who
are helping us to create new protocols. So as we look at the longevity space, if we look at the breask survivorship space, so we work on creating new care protocols as women come to us and have new needs, and then training our providers and making sure that they're able to give expert care.
So it is there's a lot.
That goes into scaling and that's really where most of our money is going.
Well, keep us up to speed with the journey. We appreciate you coming on, Johanna Stroma of Mini Health. Meanwhile, that does it for this edition of Bloomberg Technology Ed. Once again we go from public to private and it's a big day for the markets.
Yeah, a massive day for the markets.
You know, I think people still now ask the next question, what happens next, and it's hard to know in the context of a recession for tech or the rate path per tech. Really really tight pack show recap on the podcast. You know exactly where to find it on the terminal and online on all the platforms you recognize, Apple, Spotify, and iHeart. From the team out in New York City, the team here in San Francisco.
This is Bloomberg Technology.