From Marhart where Innovation, Money and Power Collie in Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
And Caroline Heine Bloomberg's world headquarters in New York and Amid Lovelow in San Francisco.
This is Bloomberg Technology coming up.
It has been the year for Nvidio Ali stocks and lofty valuations mean more than as like one hundred and nets is sept for his best year in over a decade. Can Tech continue its golden earer going into twenty twenty four?
Plus it's a must for Musk. A San Francisco federal judge has signaled that Elon Musk must testify in the SEC Twitter stock pro We're gonna have all the details.
And the outlook for electric vehicles isn't quite as bright as it was six months ago, and the US might be to blaze. And we talk about how GM four and Tesla contribute to the EV sales setback.
So we're gonna have a big focus in this show today on electric vehicles and the outlook for next year because it's changing. This is Friday session. Tesla's higher half a percentage point the other names in the red. GM is cutting thirteen hundred workers across two factories in Michigan. But what all of these stocks have in common were the top three at least, is that they're all on track for six straight weeks of weekly gains. In GM's case, that's the best run of weekly gains going back to
December twenty fourteen. I bring that up because there's been so much negative news, all the data about revised outlooks for next year, Cruise, the autonomous driving unit of GM being in trouble, Tesla's autopilot probe, and the Recoll Soft recall and software update this week. But if you extrapolate out these ev stocks have been on a tear at the same time as the S and P five hundred and Nasdaq one hundred are on their longest and best
streaks in a decade. Then there's in Video. I think in Video is still the big focus for this mark. The gain is more than two hundred and thirty percent year to date. The news in Friday session was a block trade of more than a billion dollars on the stop that traded at a pretty lofty level. Seems to be having an impact on the market, But again two
hundred and thirty six percent gain year to date. It has been a big contributing factor to the rally that we've seen in the Nasdaq one hundred and the S and P five hundred. And the question is, well, what happens if Nvidia just stops in its momentum halts? Would it?
Should it?
Nancy Kurtin is the person to be asking, Global COO of Ulti tenam and Global. A lot of money under management, a lot of working through what has been decades of whether we see money and exuberance into tech or not. From your perspective, are the valuations of a name like in video rational at this moment?
Look, Caroline, they certainly discount a lot, that's for sure, at more than thirty times earnings on average. And I think one of the things we're seeing now is competition to in video. You know, a copy has an eighty five percent monopoly, saw their profits go up seven times in a year, and is facing a trillion dollar market opportunity. We should expect competition, and so far, I think when we look at what Intel an AMD have brought to
the table from a hardware perspective, it looks pleasing. But Nvidia has quite a competitive mode in terms of Kuda software developer tools, etc. So you know, there is a lot to go for in jen Ai. And don't be don't be so quick to do work to put down these.
Valuations, Nancy. We have covered that competition so deeply on the program in the last two weeks, starting with amdsm I three hundred X. I was there on the ground with Lisa Sue twenty four hours ago. You have Intel talking about GUDI three. What is the investment strategy. Do you just pick one of those names go with it or do you need to have all three in the portfolio.
Look, I think you're going to have to see how this evolves. Remember, neither of these chips are available at the moment, So if you're a company building a Genai application, it's still h one hundred, it's still the Nvidia chip. And by the way, Nvidia is not going to stand still here. You know they've got things on the horizon, a very aggressive product launch as we head into twenty four and twenty five. You know B one hundred aka Blackwell, So you know, let's not write off the Nvidia dvantage.
But as I said, their software ecosystem, Kuda in particular is super powerful for in video, moving.
Away from pats, the picks and the shovels the chips to actually who are building the models, who's applying the models most efficiently. It's been all about Microsoft ascend degree and starting to be alphabet Do you think we need to broaden our perspective there as well? How it's starting to see Generator AI and PATA business models.
Do you know? I think there was a lot of criticism of Gemini, which course was Google's launch around two weeks ago, around latency issues, etc. Okay, put that aside. I think it misses the point. What we saw with Google was multimodal. I mean that interaction had inference, it had text, it had image, it had translation, it had coding all at once. So I think it gives you a future image of where this jenai is going. As you watch that silly thing with the guitar and the duck,
do see it? If you haven't seen it, you know you need to think about the applications and financial services in healthcare, in the industrial sector. This is absolutely huge. And you know I reckon as I was watching it, Caroline, that you know maybe twenty six, twenty seven, maybe twenty eight.
We're going to look at the mouse, the keyboard. I don't know what are those things like as in history, prehistoric stuff, right, because you're going to be able to interact with the computer in a completely different way and the coding language is going to be English, So lots of interesting implications.
Nancy, We're thoroughly enjoying this conversation. One of the things I was so interested about you is earlier in your career you ran venture capital desks private equity desks, and I wonder if that changes your approach as a CIO when you look across public equities. Are you kind of conscious of what's happening upstream in some of the earliest stage companies who might benefit from what Caroline I call the picks and shovels, Right, the H one hundred's underpinning the work in the R and D.
You know absolutely. So you know, we have investments in both public and private markets, and on the private side, I want to share with you a snippet one of our private equity managers, so now we're talking about buyout reports that every single one of their companies is using Jenai in some form and they are seeing productivity enhancements of thirty to forty percent. That's huge, okay, and that's
in private equity buyout and the venture side. Our managers are reporting enormously interesting applications, disruptive business models, horizontal u U of Genai, vertical uses of Jenai. So there is so much more to come here. We're aware of what's going on with the infrastructure layer, as you mentioned, but once we get past that twenty four and into twenty five, expect a whole host of disruptive business models and more importantly,
business applications. We're going to go to work and this will be embedded in business processes, and we're still early in that journey so far this year.
So, boy, when you're thinking about allocating and as global CIO of what is sixty seven million dollars worth of money, where do you go private versus public? Where do you think the valuations and more sustainable? Where has the pain been felt? Necessarily?
So already?
So, first of all, everything we do is customized to clients, and so it has to meet their return, their risk, their liquidity preference. Because obviously private equity and venture capital come with the longer term time horizon, so it has to be appropriate to client circumstance. But having said that, we do recommend for those clients that it's appropriate to have their foot in both the public and the private markets.
Remember the public markets today in the United States, thirty percent of the index is seven companies, pretty concentrated, pretty highly correlated to those seven stocks, etc. Although we think the other four hundred and ninety three represent some good value here. But nonetheless you're able to play a whole host of different parts of the economy, different parts of companies, disruptive companies, core businesses. Remember there's forty thousand so called
private companies in the States today. What do we have fifteen hundred public companies? So you can see you're not really accessing the full part of the economy. So again, for clients where it's appropriate, we do look like both public and private markets. Then we do believe that the long term return from private equity, buyout, growth and venture can be quite substantial.
Do you come back. It's been great to have you on, Nancy. Thank you so much.
Nasi keasan human global we thank her. I mean, while coming up elon Musk's potential AI dominance, We're gonna stick on the AI theme and talk about excess grock how might overtake chatchipt This is blameleog technology.
So Elon Musk's.
Groc Ai platform might actually be a pretty major contender in the battle for chatbot dominance.
Remerg Seth Biingman joins us.
Now to explain what is perhaps it's outperformance in an area of real time news.
How's it going?
Yeah, that's right. I think that when this thing first launched, no one wanted to take it seriously. I mean a lot of the promotion around this was that it was irreverent, profane. If you looked on the Twitter account they set up for its highlighted post, it was mostly making bad jokes
about how babies are born. But when we I rolled out more broadly this week to anyone willing to pay sixteen dollars to X for a premium account, which is certainly a limiting factor for how big it'll get, and when we looked at it, we saw a quite good for a real time news. It has access to Twitter's real time pipeline of digga, and Twitter has I should keep saying, X has cracked down and access to that data for other companies, So it's kind of unique at
this point. It's when we asked the summarize whether the climate debates in Dubai or looking at Opening Eyes data licensing partnerships, we saw that it was more accurate up full time than chatchy bt mborn.
So sef I asked a very basic question on grok this morning, who am I? Who is Ed Ludlow, and GROC does have a more contemporaneous, up to date answer than chat GPT, and chat GPT basically said, my data is relevant as of jan twenty twenty two. Make sure you actually go and check an original source. But it doesn't get it all right, because when I asked it to tell me about Bloomberg Technology, it told me that Emily Chang, dear friend by the way, is still the
host along with Corey Johnson. That's pretty out of date. The point is this is about the how recent the data it was trained on is right.
That's right, kicking myself from not asking it who ed lewis, but I'm glad that you got to that question. I think the important thing to keep in mind here at a higher level, is that there's a real arms where he's going on right now, not just for how chadbods perform day to day, but how they can access and answer questions in real time. It's so central to Google and to Microsoft in particular to build a surface real
time information. And what we're seeing is like, if you're built on top of a social media platform, you have a better shot at that. The flip side, as you're pointing to, is that they're surfacing content from tweets and accounts that may not be as authoritive of So that's the problem.
Seth Figmun, who leads our AI coverages editor And as we saw in that clip, Lindy Akarinho actually replied to my post saying rock for the win, but then she didn't see the post where it gave the wrong answer. We keep guying Bloomberg. Seth Figmann, thank you so much. Okay. Another story in Elon Musk's world, a San Francisco judge has signaled that Musk must testify about his Twitter stock purchases ahead of the company buy out last year. This is part of an SEC investigation in joining us now
Bloomberg's Austin Weinstein in Washington. The judge is basically saying, if you two can't sort out getting together and talking then I will intervene.
Yeah, the judge made it pretty clear that she seemed that to be in the position that she was going to a way in favor of the SEC here in enforcing their subpoena. It's very rare for the SEC to get a no show on it subpoena like Elan did earlier this year. It's very rare for them to sue to enforce that subpoena.
And it's even more rare for the SEC.
To lose in court on a bid to enforce a subpoena.
Okay, so chances perhaps old on his side for this. He does feel though that he's already answered an awful lot of questions, not once, but twice. Is there any sort of well context to this where we've seen people have to come in and give evidence time and time and time again, there's a lot of.
Situations when in an SEC investigation they ask more questions the facts of this investigation, which is one of a number into Elon Musk's companies go back to his purchase of Twitter, when he bought up a large stake when the company was pot private, and so they interviewed him close to his purchase of Twitter and then earlier this year, they did their investigation, they talked to a whole lot of people, and they wanted to come back to Elon
and say, hey, we have some more questions. Let's sit down and have a conversation and get your testimony here. And basically the SEC said that he played you know, catch me if you can, and tried to play fast and loose with the location and then move the date, and the SEC just kind of got sick of it.
But it's fairly normal for them to go back to what they would think is a key witness, you know, the CEO, the guy who bought the company eventually and asked some more questions after doing that investigation.
I meanwhile, Musk currently feeling in it's harassment by the SEC.
According to a filing, Austin weisteeing.
Me thank you so much for the background on order.
That time for talking tech and first up in the news crew. Trim, an ai startup founded by LA founder babvish Agorole, has launched India's first multi lingual LM, which can generate text in ten Indian languages. The startup is also developing data centers and aims to create servers and supercomputers for an AI ecosystem, and Google is changing its maps tools so that the company no longer has access
to users individual location histories. This effectively cuts off its ability to respond to law enforcement warrants that ask for data on everyone who is in the vicinity of a crime. Plus, an examination of FDA records shows the administration is doing little to cut down on misleading drug claims on social media, despite having the power to oversee prescription drug marketing. For decades, the FDA has regulated advertising on television, radio, and in magazines.
It released guideline into social media in twenty fourteen, but since then it's done little to regulate influence influencers sorry, who may or may not have had direct ties to those manufacturers.
Caroline, Yeah, that's an interesting one, and we want to broaden that sort of a conversation and think about how the FTC is tackling it, because it's actually issued a warning and some letters to beverage companies and influencers on potential violations of the FDC Act in their social posts on Instagram and TikTok, where they aren't is accused adequately disclosing their payment by the industry and as they promote the safety of in particular artificial sweetener or the consumption
of sugar containing products for example, joining us to discuss all of this and what regulation could in fact becoming their way when it comes to AI and influencing is Mary Angel is just the former Director of the Revision of Advertising Practices at the FTC, currently serving as a Senior Vice president for the Policy actuble B. That's PBB National Programs.
Mary.
It's a really interesting one. What weren't influencers doing because they seem to be saying hashtag ad or sponsor, But is that not enough in this context?
Yeah, it's really interesting that the FTC was saying here that it wasn't enough even if you had a big bald ad or sponsored disclaim around your post, because it wasn't clear in this case who the sponsor was. Now, typically a brand product will appear in a post, so you know.
Who it is.
But in this case they were talking about sugar artificial sweeteners as pertame, and the FDC said, look, consumers don't know who the sponsor is, so you've got.
To say who that is, Okay, So more disclosure and ultimately whether a beverage company is behind your post and what's led you to do the posting. How ultimately is the FTC and others able to keep a track of this, How are we going to be monitoring? Is it up to individual consumers to be saying that this influencer hasn't been clear and or are they going to adopt uses of AI for this sort of program.
That's a good question. I could see the FTC adapting AI to kind of scour a social media for a post.
But typically absolutely.
The FTC will pay attention if consumers are complaining at their aren't disclosures.
A lot of times it'll be a.
Media report, and I think in this case it was the Washington Post did a report on how these influencers were not properly disclosing.
What ends up being the stick in this particular example, as it finds, is it what does the FTC end up exerting.
Yeah, So in this case, the FTC sent warning letters to all these influencers and to the American Beverage Association and Canadian Sugar Institute and said here, look, this is what you should be doing, here's what you didn't do it right and put and gave them notice of a penalty they're a penalty offense authority, which means that the FTC would have the ability to find or impose civil penalties if there are future violations, and say.
I'm the corporate coming to you who you know. They haven't always got the most fine detailed control over an influencer.
How they meant to ensure.
That the way in which their messaging is going out and the influences they used to work with are abiding by new FTC regulation.
So there are three things they should do. First is they should have written policies, and the policy should be pretty detailed.
Don't just say.
Comply with the FTC's endorsement guides. Say that, but also highlight the important provisions that are important for influencers, like clear and conspicuous disclosures and explain what that means, things like don't rely on platform disclosures. And then second, have an active monitoring program periodically review what your influencers are
posting to make sure that they're doing it right. And then, third, if they're not doing it right, warn them, and then ultimately don't use them anymore if they insist upon posting without doing proper disclosures.
Meanwhile, of course, the FTC has been busy, to say the least, and they are trying to wrap their hands around ultimately relationships between for example, well Open AI and Microsoft and the way in which consumers are going to be protected in this new age.
Of official intelligence.
How have you been looking at that as a new area of focus and concern?
Yeah, so absolutely there's an opportunity here for responsible businesses to get ahead of regulation and come together and to exercise independent industry self regulation. And what I mean by that is to establish clear standards with monitoring and public reporting and to comply with those standards. Industry has a good idea of what the government is looking for right now.
It's going to take some time for there to be legislation or regulation, and there's a real opportunity for businesses to show leadership by engaging in robust industry self regulation with accountability. And there's got to be a third party to hold them accountable to complying with their standards. We don't want companies to grade their own homework, so we need a third party to oversee compliance.
And is that what BBB National Programs ends up being or where at the moment have companies turned to for this sort of compliance ahead of regulation becoming formal.
Absolutely so BBB National Programs. We are a nonprofit that promotes marketplace trust by providing those sorts of independent, third party self regulatory and accountability programs in all sorts of different industries, advertising privacy and Earlier this year we release Principles and Protocols for the ethical use of AI in hiring and recruiting. We worked with about a dozen and a half large employers to come up with principles for here is how to use AI ethically to mitigate bias
and to actually promote inclusion in the workforce. Knowing that eventually government may regulate there, but there's lots of companies can and should be doing even before that time.
And look New York already in many ways regulating yes, AIS applied to the world of work.
We thank you so much, Mary angel.
Gait to have you BBB National Programs, of course, formerly at the FTC itself at what if you.
Got that's that one hundreds taken It's year today gay beyond fifty percent now at fifty two percent for the year. There are so many superlatives. This is the eighth street straight week of weekly gains on the NASDAQ one hundred longest street of weekly gains going back to July of twenty twenty one. The S and P five hundred, of
course also outperforming. Lots of moves into the technology sector, and as we discussed earlier in the show, there are a few names that are driving that, in video being one. What's interesting is that some of the moves in some corners of the technology sector, if you want to call it, that are at odds with the news flow, and that's why we're looking so closely at the EV makers. Many of the legacy OEMs GM and Ford, for example, but also Tesla, are on track for their sixth straight week
of weekly gains. In GM's case, that's the best run of weekly gains going back to December twenty fourteen. But the news flow has been so negative. Think about GM overnight cutting thirteen hundred jobs across two plants in Michigan, some of those relating to evs in the Orion plant, for example, Chevy Bolt was due to be the place where the electric pickups are coming twenty twenty five. Tesla the autopilot recoll soft recall and date a software update
this week. Not really any slowing down of the mentum behind these names. It's interesting. And then there's the outlook for this next year which doesn't look as bright.
It doesn't And let's dig into some of the outlooks that were getting from our own internal analysis, because we're right, the EV outlook is just not where it was six months ago, and the US seems to be largely to blame that. There's this overarching takeaway from Lumberg, Neeslitus Electricied Transport market outlook. It's got three companies in particular that are worth bearing in mind for much of the culpability.
GM for Tesla.
Let's dig into really what statistics are telling us Plumes Cragatrudell is staying late for us in London to talk it through, and why it's under the exuberance dialing back in how much demand there is for EV's.
Yeah, I think this is a very different case for these three companies where you can sort of put GM and Forward together in that you know, in BNF's words, they're lacking in ambition, and I think I would add to that sort of lacking an execution. They are sort of dialing back their ambitions because they you know, set these really you know ambitious targets for EV sales that just have not come to pass, and I think there's there's been some you know, sort of self inflicted wounds
here and mistakes that they've made. With GM struggling to ramp up the ultium platform that was going to underpin its new evs Ford, I think, you know, kind of cut some corners maybe with the F one fifty Lightning to try and get that to market quickly. And then you have a very different story with Tesla, where they've been kind of you know, carrying the water for the industry in the US, at least in terms of, you know,
really dominating that market from an EV perspective. We're at a point now where they just have not refreshed the lineup enough to where, you know, the Model Y has been out since twenty twenty, the Model three since you know, twenty seventeen eighteen, and the cyber truck is just not going to be a high volume model for them anytime soon.
So where is the growth going to come from? When you've, you know, for years, really has some impressive sales of these models, but they're starting to show their age a little bit.
I think what's so interesting is you have to think globally about this. So let's dig into that idea that the US is largely responsible for the revision because there are markets around the world Europe, China where the data shows a different picture. Just give us the top line, What should we expect for the EV market in twenty twenty four globally?
Yeah, I think BNF is still dialing back globally as well. As we've talked about, you know, the US is where the sort of you know, brun of of the reductions are coming from. But you are seeing a little bit of dialing back here in Europe. I think that's partly to do with the fact that you know, vw A, in a sort of similar fashion to GM and FORD
are having some execution issues. I think it's more so related to their software in their evs as opposed to the evs themselves having you know, problems with battery and whatnot.
But you've seen some you know pulling back of production plans for a VW I think in China, even it's a market that has you know, absolutely dominated on the global stage, some concerns about the sort of overall strength of the economy in China are whack thereof that, you know, maybe is putting a bit of a damper on the outlook for twenty twenty four, and that's causing BNF to get a little bit more conservative in terms of how they're thinking about next year.
It is Friday. Let's end it on a happy note and point out that in the chart we just showed, BNF also expects the first five million unit quarter to come by the end of twenty twenty four. There is some hope. Craig Bloombo's Craig Drudel, our Global Auto's editor out of London, thank you so much. There's more to talk about. Let's keep a conversation going with Michelle Kreb's executive analyst at Cox Automotive, which also just published it's twenty twenty four Auto and EV forecast today. You heard
the Bloomberg n EF forecast. Explain to us your forecast for next year.
Well, I think our forecast is that we've gone from this really rosy forecast, probably overly ambitious, to reality and look for a bigger picture. We don't anticipate overall car sales in the US to go up all that much, maybe two hundred thousand units next year. So yet We still anticipate that the EV market will increase. We think it'll maybe be around ten percent of the total market. It was like eight percent this year, but you know,
it's an overall market that's kind of stabilizing. To the other thing is you know, we're going to have to start really trying to sell evs, not just expect people to order them.
And therefore give us your expertise on like a marketing advice. Now to these companies, is it about getting over the worry that ultimately you're not gonna be able to find the charging unit when you need it, not gonna be able to make the miles that you want, or are we over that as a consumer? Is it more about price point, about just not really seeing the urgency of switching to EV.
We are not over any of that. You know, we still do not have The US is a lot bigger than some of the smaller European nations, and so we do not have this expansive EV charging infrastructure. It's growing, and it's it's stronger in certain places than it is others. So that still is a huge concern and that has to be overcome if we're going to have massive EV adoption. Price is an issue, although we are seeing some very nice incentives on EV's so that then there will be
more discounting. About a year ago they were ten thousand, the average was ten thousand dollars more than it is now, So we will see more price competition and we will see less expensive evs coming into the market, so that should help too. But we're now going to the mainstream buyer, and that's going to take more education, more handholding to convince people to buy evs.
Michelle, wo'd be grateful for your reaction to two recent and important pieces of news. The first was Ford cutting in half its planned production for the F one to fifty Lightning in twenty twenty four to a run rate of about sixteen hundred units a week from thirty two hundred, and then overnight GM cutting thirteen hundred jobs, nine hundred and forty five at Oryan where they make for now the Chevy Bolt, and then twenty twenty five plan to make the pickup. What does that tell you.
Well, first of all, on the very different stories on General Motors, we knew this was going to happen. They announced some time ago they were going to end production of the Chevrolet Bolt we call it the Orion plant here and that endsize. That's okay, it ends next week. And then they were going to immediately start retooling for the electric pickup trucks, but they have postponed that a little bit, so they've pushed that more back into the future.
And then there was there are they're eliminating the Chevrolet Camaro, which may come back in some different forms. So we knew those the Ford lightning plant. They had expanded that plant, probably got a little too ambitious on their expectations, and as Craig said, some execution problems and so they've had to scale back. They've got mounting inventory of the lightning just fascinating.
We're always so grateful when we get your decades of experience and expertise, Michelle.
We thank you for it.
Michellekrab's executive analysts at Cox Automotive, have a wonderful weekend.
Pair VC, a pre seed and C stage venture capital firm based in Menlo Park, is opening per studio set for thirty thousand square foot space in San Francisco. There will serve as a home for tech founders in a spiring entrepreneurs Pedgeman knows that CO founder and founding managing partner of PAIRBC is with me here on Satin San Francisco.
This is a big commitment, imagine a big financial commitment to a space that can be home to they're not even founders because in some cases haven't even started a company yet. Why you do that, Yes, that's true.
So, as you mentioned, it's a thirty thousand square foot state of the art office here. It's a brand new building, two hundred and twenty five desks and over twenty conference rooms. We're going to host speaker cities, workshops, social events, hackatons, and really a platform profounders to learn and grow. But
this has been always a strategy for us. In fact, our very first office, which we opened in twenty thirteen, was at home two thousand steps away from Stanford University, so we hosted many students there and the event on and build many startups, including a few multi billion dollars companies. So it's a core strategy for us, and I think I'm at the heart of starf option. It's easy to see that buildings are empty in San Francisco, but I
think quite a bit opposite. I actually think startup becausism is boiling especially at early stage.
Well, it's a classic Silicon Valley and indeed classic San Francisco story, Right, you only need go down to Hayes Valley and see the laptops that people are working on together in a coffee shop. But you also have some selfish motivation, right, which is that if you have this large body of people through your doors, you get right of first refusal to invest in them.
I completely agree. I think we want to see founders before anybody else, and we want to be the first investor before friends and family around. So we're gonna and actually you won't believe that how many calls we got from incredible entrepreneurs. They want to be at the office soon, so we are very excited about it.
What's interesting is you're supporting them with boot camps for example. You've also got a female founder circle. How are you laying the groundwork to ensure that we see diversity among those that are building these businesses at this time?
Yeah, as I mentioned, it's very important for us diversity. One of our program female founder Circles. In fact, every year we select eighty two hundred top female engineers who are leaving big tech companies academia startups and wants to start a startup and it's a free program for fifteen weeks. Same concept. We give him office, we give them access to our team, we bring speakers, workshops, and hopefully we can invest in these companies.
And that's the key.
Is like when you build a community, you have to give before you get, and we always provide many resources before we even start, and we build that trust throughout the months that we're working with them.
And maybe it's why, of course you've become some of the top investors in straor Dash and drop Box and some of the other success stories that companies eventually go in public.
I'm interested pagerement.
You're saying you're trying to attract talent that is leaving well working in engineering for some of the big tech companies. How many people are still leaving? How many people do still want to go and build things at this moment.
You know, I've never seen startups ecosystem as vibrant us today. You know, you can hear news about growth stage companies and public market, but I actually think the recent development in jen Ai is just allowing entrepreneurs to build product faster and get quicker feedback from the companies. So I think the product cycle is it's a lot faster than before. And I actually see people are coming back to San Francisco from New York, Austin and Los Angeles. Nobody wants
to miss the AI revolution. I won't be surprised in the next wave of public companies in tech there are less than five to seven years old and versus today you see ten to twenty years old.
You know.
I see some of the companies that they're reached twenty million dollars revenue.
In less than six months.
It's just the mind buggling that how fast companies can grow today. At the same time, obviously there's a lot of high pron AI So that's a separate conversation and.
Is Satay, we have to get you back for it.
But kind of music to some of those LPs is certainly some of those bankers is as well. If we start to see younger IPOs, we thank you. Pressure and knows that, and he's of course co founder and founding managing partner of peir VC.
Thank you.
Let's talk about the X Prize Foundation, ed nonprofit that fund scientific research, says it will award to get this one hundred and one million dollars to anti aging research. It's a topic that is often dismissed as some sort of unrealistic quest for the fountain of youth. But the award is the largest in the history of the foundation.
I'm please to welcome Peter Diamandis to the show, founder of X Prize and the author of the new book called Longevity, exploring of course, the practices around longevity and the tech and therapeutics trends around vitality and health span. You join us now and Peter talk to us about this isn't just some quest to forever be young or feel young, but this is actually also an economic reality that the pressure of aging is becoming gargantuan.
Yeah, Caroline, aging is hitting our economy as people growing older. The challenges While we've extended our lifespan, we've not extended our health span, and so unfortunately the last ten to fifteen years of people's lives can be expensive. It can
be a drain on family. This isn't only the largest X Prize ever, and we've X Prize, we've rolled out four hundred million dollars in incentive competitions, right, not awarding something that was done years ago asking teams to achieve a goal and the first person to achieve it wins. It's the largest prize ever in human history, one hundred and one million dollars, funded by some incredible benefactors, Evolution in Chip Wilson. It is asking teams to reverse the
ravages of aging. So the team that wins this has to demonstrate a therapeutic that, when delivered within one year, can give you your muscular strength, your cognitive clarity, and your immune function that you had at least ten years ago and as many as twenty years ago. We're trying to restore function, so those last twenty years of life are at your peak capability. I for one, think can go a lot further, but you know, we're setting a target we think is audacious but achievable.
Pete in the X Prize is history. Which winner do you think has had the biggest impact on a specific piece of technology or a whole industry?
Well, that's that's a great question. So we've launched, like I said, four hundred million dollars in competitions. Our first one, you know, nearest and dearest to my heart, was the ten million dollar I'm sorry X Prize for Spaceflight is a ten million dollar competition. Yeah, and it really lit the fuse. I mean, I'm a nine year old kid who wants to travel to space and I want to live longer, healthier, so I can go and get to the Moon, get to Mars, get to the asteroid belt,
wherever it might be. But it changed the rules and regulations for spaceflight. It brought capital, and it ignited you know what is now, you know, a multi hundred billion dollar industry. But we've had X prizes for reinventing how we teach kids in the middle of Africa, for pulling I had a one hundred million dollar X Prize that got el to fund in twenty twenty one for pulling gigatons of carbon out of the atmosphere. We just launched an X prize about nine months ago for wildfires right
here in California. We got all these wildfires, but it's insane that we fight these fires the same way we did twenty fifty years ago. This is an X prize asking teams detective fire at ignition and put it out within ten minutes autonomously.
Right.
So this way we're looking for audacious, achievable goals and for me, there's no bigger gift than twenty years of additional health you can give somebody. It's the biggest business market.
Peter I was there in New Mexico when Richard Brentson went up on VSS unity. But think about the time it took to get there from when the initial prize was issued. Do you see credicles have come up? But the pace of commercialization is the question? Right? Your opinion on that?
Yeah, yeah, no, it's listen. We unfortunately we say our work begins when the prize gets won, because you then, when someone's demonstrating a minimally viable product, how you turn it into an industry. And it's taken the better part of twenty years to get commercial spaceflight going. And so yeah,
it's really but something's different now. The reason we're doing this one hundred and one million dollar health Span Prize now is that smaller teams using generative AI, using CRISPER, using gene therapies, using cellular medicine, the ability of small teams to do things that only largest government programs and largest corporations could do before. So we announced this in Riad,
Saudi two weeks ago. We have one hundred and fifty teams competing thus far, My goal is we'll get north of five hundred teams or maybe one thousand teams.
And it's where from.
What's interesting is you say you announced this in the Middle East. Can you tell us we've only gone a minute left? But where you're seeing some of the most talent, when you're seeing really the hunger to fix this problem.
Yeah, we're seeing it. It's around the world, right. We will typically get competitors from fifty countries around the world, sixty seventy eighty. And this competition is showing us where we're going to be in the next seven or eight years. And people need to realize there are things you can do right now to keep yourself healthy and young until you get there.
Right.
So that's the reason I wrote my book longeb to your Practical Playbook. It's also the reason you know I started a company called Fountain Life, and these are the most advanced diagnostic companies in the world, right, the most advanced therapeutic So you can go now and find out is there anything going on inside your body you need to know about because you can do something about it. People need to look our bodies are amazingly good at hiding disease.
Well, said ex post founder. Great to have you, Peter DMan, as we thank you for other time. Meanwhile, that does it for this edition of Bloomberg.
Technology Recap, a big Friday and a busy week on the podcast from San Francisco and New York City. This is Bloomberg Technology