From Marhart where Innovation, Money and Power Collie in Silicon Vallet NBN.

From Marhart where Innovation, Money and Power Collie in Silicon Vallet NBN.

This is Bloomberg Technology with Caroline Hyde and Ed loved Love.

This is Bloomberg Technology with Caroline Hyde and Ed loved Love.

Live from Bloomberg's World headquarters in New York. I'm Caroline High and i me.

Live from Bloomberg's World headquarters in New York. I'm Caroline High and i me.

Ladlow right next door. This is Bloomberg Technology.

Ladlow right next door. This is Bloomberg Technology.

Coming up.

Coming up.

Cisco buying Splunk and a twenty eight billion dollar deal that pushes it into AI.

Cisco buying Splunk and a twenty eight billion dollar deal that pushes it into AI.

Will bring you the terms of the deal and what.

Will bring you the terms of the deal and what.

It means for em and A and from m and A to IPOs, we'll get a read on the state of the market with Jeff Thomas from NASDAK as companies see their trading debut.

It means for em and A and from m and A to IPOs, we'll get a read on the state of the market with Jeff Thomas from NASDAK as companies see their trading debut.

Pop begin to fade.

Pop begin to fade.

Plus, we'll bring you the latest in the media world. Robert Murdoch steps down from the Fox and News Corp.

Plus, we'll bring you the latest in the media world. Robert Murdoch steps down from the Fox and News Corp.

And writers and studios that are inching closer.

And writers and studios that are inching closer.

To a deal.

To a deal.

All that and so much more ahead, Let's bringing Jim Fish, analyst of Pipe Sanla, who has a neutral rating on Cisco fifty seven dollars price target and ultimately, is this a good deal despite the amount that they're paying in terms of premium?

All that and so much more ahead, Let's bringing Jim Fish, analyst of Pipe Sanla, who has a neutral rating on Cisco fifty seven dollars price target and ultimately, is this a good deal despite the amount that they're paying in terms of premium?

Yeah, thanks for having me.

Yeah, thanks for having me.

First off, Secondly on your question here, look Splunkhead been a target for Cisco for a little while here Back in January of twenty twenty two, it was rumored that Cisco had made a offer at that point. Now today you get the conclusion of that, or almost conclusion as we work through a nine to twelve month deal cycle here.

First off, Secondly on your question here, look Splunkhead been a target for Cisco for a little while here Back in January of twenty twenty two, it was rumored that Cisco had made a offer at that point. Now today you get the conclusion of that, or almost conclusion as we work through a nine to twelve month deal cycle here.

On this one forward to close.

On this one forward to close.

But this is the name that we have pointed out for quite some time that is most strategic to Cisco when you look at what Chuck Robbins and his team are.

But this is the name that we have pointed out for quite some time that is most strategic to Cisco when you look at what Chuck Robbins and his team are.

Trying to do around AI cloud security, this one just fits the bill.

Trying to do around AI cloud security, this one just fits the bill.

It really merges that world between app experiences that they call it with the security side and fills a big hole in the security portfolio that we pointed out for a long time in the security Incident and Event management or SIM space. Splunks the big eight hundred pound gorilla in that space, and it really is the backbone of security operations centers, and Cisco really needed that kind of backbone to really push the push the envelope a little bit more on its security business that's really been lagging against other security peers out there in terms of a growth ring.

It really merges that world between app experiences that they call it with the security side and fills a big hole in the security portfolio that we pointed out for a long time in the security Incident and Event management or SIM space. Splunks the big eight hundred pound gorilla in that space, and it really is the backbone of security operations centers, and Cisco really needed that kind of backbone to really push the push the envelope a little bit more on its security business that's really been lagging against other security peers out there in terms of a growth ring.

So Chuck Robins reckons this transaction is going to close in nine to twelve months, and then Gary Steele, who is the CEO of Splunk, is going to join the executive team reporting to Chuck Robbins. You gave an excellent explanation there of what Splunk brings to Cisco. Have a second go at it from a layman's perspective.

So Chuck Robins reckons this transaction is going to close in nine to twelve months, and then Gary Steele, who is the CEO of Splunk, is going to join the executive team reporting to Chuck Robbins. You gave an excellent explanation there of what Splunk brings to Cisco. Have a second go at it from a layman's perspective.

What is Splunk? What are we talking about here?

What is Splunk? What are we talking about here?

Yeah, so gets back to actually the name of Spunk.

Yeah, so gets back to actually the name of Spunk.

Really, what Splunk is named after is going splunking, which is going cave diving, and in this case, it's going after essentially data, trying to understand your data, being able.

Really, what Splunk is named after is going splunking, which is going cave diving, and in this case, it's going after essentially data, trying to understand your data, being able.

To search through it.

To search through it.

So when you have a you know, breach for example, that you don't know about, but you can kind of search through all of your data with spunks tools and be able to find you know what's actually going on inside your environment, which is why it's so important for your security operations center as well as for an instant response and management perspective. And actually, while we talk about Splunk as a security tool, its foundation was actually on the IT operation side, in sort of the performance management.

So when you have a you know, breach for example, that you don't know about, but you can kind of search through all of your data with spunks tools and be able to find you know what's actually going on inside your environment, which is why it's so important for your security operations center as well as for an instant response and management perspective. And actually, while we talk about Splunk as a security tool, its foundation was actually on the IT operation side, in sort of the performance management.

So how is your network actually performing?

So how is your network actually performing?

How how are your applications performing via on prem or in the cloud as we shift to you know, a nature AWS Google environment and being able to manage across the entire environment, not just you know, on prem and that's been a big shift for Spunk over the last few years.

How how are your applications performing via on prem or in the cloud as we shift to you know, a nature AWS Google environment and being able to manage across the entire environment, not just you know, on prem and that's been a big shift for Spunk over the last few years.

Here.

Here.

Yeah, I knew that, we knew that. I was just checking.

Yeah, I knew that, we knew that. I was just checking.

Jim.

Jim.

We're a smart guy, So thank you.

We're a smart guy, So thank you.

I don't serve ability.

I don't serve ability.

Let me just ask you this.

Let me just ask you this.

A regulator is going to let this one go through, I said, Chuck thinks nine to twelve.

A regulator is going to let this one go through, I said, Chuck thinks nine to twelve.

Yeah, it's a question we're getting this morning.

Yeah, it's a question we're getting this morning.

We're actually we cover VMware as well, and that's been a fun one in terms of regulation. I'd argue a longer time period on that one. Look, I think you're starting to see things go through. Even of VMware size. For Cisco and Splunk, there's a little bit of overlap in terms of, for example, market share with the powerful combination of app Dynamics, thousand Dies and now Spunk altogether, but there really isn't much on the security side, and so from the both the application experiences and the security businesses. While Splunk is a decent sized i'm sorry one, while Cisco is a decent sized player in each as well. Splunk, you know, the two of them combined are really still part of this really fragmented set of industries that there really isn't the antitrust issue here in our.

We're actually we cover VMware as well, and that's been a fun one in terms of regulation. I'd argue a longer time period on that one. Look, I think you're starting to see things go through. Even of VMware size. For Cisco and Splunk, there's a little bit of overlap in terms of, for example, market share with the powerful combination of app Dynamics, thousand Dies and now Spunk altogether, but there really isn't much on the security side, and so from the both the application experiences and the security businesses. While Splunk is a decent sized i'm sorry one, while Cisco is a decent sized player in each as well. Splunk, you know, the two of them combined are really still part of this really fragmented set of industries that there really isn't the antitrust issue here in our.

View, What then, of the competitive landscape those that Splunk was up against Data Dog based here in New York, com thing in Dina Trace as well. Digital's actually under pressure some three percent to day.

View, What then, of the competitive landscape those that Splunk was up against Data Dog based here in New York, com thing in Dina Trace as well. Digital's actually under pressure some three percent to day.

Does it not make it more attractive?

Does it not make it more attractive?

You know? It's interesting, right because M and A can be disruptive to.

You know? It's interesting, right because M and A can be disruptive to.

The business being bought and potentially act as a tailwind for competitors.

The business being bought and potentially act as a tailwind for competitors.

Look, I don't cover Davia Dog.

Look, I don't cover Davia Dog.

That's carved by my peer, Rob Ewens, but you know, David Dog itself has been doing good things in sort of cloud observability and that's where essentially workloads are going correct and is considered one of, if not the leaders, in that observability space. But when you kind of stack up what Splunk could do for Cisco, you know, it does make Cisco a more relevant competitor in this space, especially given Cisco has a huge reach, right and Gary and Chuck talked about it on the call this morning, where about two thirds of Spunk as domestic and a third is international. Well, while Cisco has arguably the best go to market program out there and can really penetrate their roughly a million customers with splunks.

That's carved by my peer, Rob Ewens, but you know, David Dog itself has been doing good things in sort of cloud observability and that's where essentially workloads are going correct and is considered one of, if not the leaders, in that observability space. But when you kind of stack up what Splunk could do for Cisco, you know, it does make Cisco a more relevant competitor in this space, especially given Cisco has a huge reach, right and Gary and Chuck talked about it on the call this morning, where about two thirds of Spunk as domestic and a third is international. Well, while Cisco has arguably the best go to market program out there and can really penetrate their roughly a million customers with splunks.

Offering, and so that could potentially box out a competitor.

Offering, and so that could potentially box out a competitor.

When do you think about it, Jim Fish or Piper Sandler, just not just so good on the deal, but also where it fits in the landscape.

When do you think about it, Jim Fish or Piper Sandler, just not just so good on the deal, but also where it fits in the landscape.

Also very kind about me, Thank you very much.

Also very kind about me, Thank you very much.

Now, coming up from the show, we're going to turn from M and A to IPO's. Jeff Thomas, Executive vice president of nasdaq's Corporate Platforms, is joining us next character.

Now, coming up from the show, we're going to turn from M and A to IPO's. Jeff Thomas, Executive vice president of nasdaq's Corporate Platforms, is joining us next character.

Meanwhile, look, let's just get to check in on how these IPOs are the week affairing, because instagrat actually it's still clinging to a gain over the last three days, but coming off well from that pop after.

Meanwhile, look, let's just get to check in on how these IPOs are the week affairing, because instagrat actually it's still clinging to a gain over the last three days, but coming off well from that pop after.

Its initial IPO.

Its initial IPO.

We're currently training at thirty spot zero five, a tiny gain on the thirty dollars pricing, but is that we know remaining open Look up an eye for you from New York.

We're currently training at thirty spot zero five, a tiny gain on the thirty dollars pricing, but is that we know remaining open Look up an eye for you from New York.

This's a Bluemberg technology.

This's a Bluemberg technology.

We're just taking you over to a either then happening the Bloomberg Global Credit Form. It's not a way in London. You've got panels and KKR, Apollo, Barclays. They're all discussing at this very moment the rise of private credit. And if you want to be digging into that a little bit more, you can go to Life, go on a Bloomberg terminal. But the credit more broadly ed is important to our viewers in technology, whether it happens to be the public companies seeking to raise funds to the bond market and indeed the private.

We're just taking you over to a either then happening the Bloomberg Global Credit Form. It's not a way in London. You've got panels and KKR, Apollo, Barclays. They're all discussing at this very moment the rise of private credit. And if you want to be digging into that a little bit more, you can go to Life, go on a Bloomberg terminal. But the credit more broadly ed is important to our viewers in technology, whether it happens to be the public companies seeking to raise funds to the bond market and indeed the private.

Co yeh lok.

Co yeh lok.

Cost of capital is important to any technology company. It's a part of the balance Sheeper. Think back to May Apple and Meta returned to the blue chip usbon market, we get super excited.

Cost of capital is important to any technology company. It's a part of the balance Sheeper. Think back to May Apple and Meta returned to the blue chip usbon market, we get super excited.

Haven't heard anything since.

Haven't heard anything since.

So I just wanted to remind our audience, like tech, companies in debt pay close attention.

So I just wanted to remind our audience, like tech, companies in debt pay close attention.

Particularly when rates from the treasury perspective are on the rise, and whether in Central Bank really starts to impact the desire there. Meanwhile, I mean this all comes in a global narrative when we're thinking of the health of the twenty twenty three IPO landscape. At the moment, we're facing uncertainty after Armen in Stacart reverse gains after popping during their debut.

Particularly when rates from the treasury perspective are on the rise, and whether in Central Bank really starts to impact the desire there. Meanwhile, I mean this all comes in a global narrative when we're thinking of the health of the twenty twenty three IPO landscape. At the moment, we're facing uncertainty after Armen in Stacart reverse gains after popping during their debut.

So let's get a little tape new Egsaba Girl Digital. He's here for more a weldcare line.

So let's get a little tape new Egsaba Girl Digital. He's here for more a weldcare line.

It is really pretty interesting here because we did, of course have the big IPO pops last week for ARM, and then earlier this week for both Instacart and Kleviyo. Here's ARM, though, giving back its first twenty four percent gain that first day pop down each subsequent day overall down about one point seven percent. So what really raises the question begs the question of whether or not this IPO window is healthy. In fact, if we take a look at both ARM and cart, we are going to see over this time period there's the ARM loss, but KRT actually a small gain here a four tens of one percent, not so shabby.

It is really pretty interesting here because we did, of course have the big IPO pops last week for ARM, and then earlier this week for both Instacart and Kleviyo. Here's ARM, though, giving back its first twenty four percent gain that first day pop down each subsequent day overall down about one point seven percent. So what really raises the question begs the question of whether or not this IPO window is healthy. In fact, if we take a look at both ARM and cart, we are going to see over this time period there's the ARM loss, but KRT actually a small gain here a four tens of one percent, not so shabby.

But what comes to mind for me why I.

But what comes to mind for me why I.

Was initially questioning whether or not these pops were good enough. If we take a look at what happened back in the pandemic, we of course had Airbnb up one hundred and thirteen percent, a firm up sixty four percent, Bumble up almost one hundred percent, and then posh up one hundred and forty two percent.

Was initially questioning whether or not these pops were good enough. If we take a look at what happened back in the pandemic, we of course had Airbnb up one hundred and thirteen percent, a firm up sixty four percent, Bumble up almost one hundred percent, and then posh up one hundred and forty two percent.

So the pops that we've seen over the last two weeks.

So the pops that we've seen over the last two weeks.

Not quite as strong. Have we greased the IPO window. It's not entirely clear at this point. More needs to be seen.

Not quite as strong. Have we greased the IPO window. It's not entirely clear at this point. More needs to be seen.

For sure.

For sure.

You know Shnalibus was on the show yesterday lamenting how that's it now? All the IPOs ha done. We've covered them to death. There won't be any tillbuck and stock. And she's really sad about it. That's not quite true, though, is it abby?

You know Shnalibus was on the show yesterday lamenting how that's it now? All the IPOs ha done. We've covered them to death. There won't be any tillbuck and stock. And she's really sad about it. That's not quite true, though, is it abby?

Yeah, we to be seen. It's good.

Yeah, we to be seen. It's good.

It's going to have a lot to do with this macro. I mean, the macro environment right now relative to the FED is not so great, and it's.

It's going to have a lot to do with this macro. I mean, the macro environment right now relative to the FED is not so great, and it's.

Not also bad.

Not also bad.

Take a look at Clavio still holding on to a gain of five point three percent. And I would also point to back in the day there was a company that ipoed, and in the first couple of months we go into the Bloomberg terminal, this stock absolutely tanked down you can see here, down more than fifty percent of those couple of months. It came back in a big, big way, though, And at this point is that more than seven hundred percent since that ipo? Any any takers on what this is and why these IPOs right now?

Take a look at Clavio still holding on to a gain of five point three percent. And I would also point to back in the day there was a company that ipoed, and in the first couple of months we go into the Bloomberg terminal, this stock absolutely tanked down you can see here, down more than fifty percent of those couple of months. It came back in a big, big way, though, And at this point is that more than seven hundred percent since that ipo? Any any takers on what this is and why these IPOs right now?

Maybe we shouldn't bring to me.

Maybe we shouldn't bring to me.

It wasn't around then Okay.

It wasn't around then Okay.

So it was Meta Facebook.

So it was Meta Facebook.

Oh yeah, so previously known as Facebook.

Oh yeah, so previously known as Facebook.

Yes, previously known as Facebook at that time had a very very difficult first couple of months. But if we take a look at what Facebook has done, Meta has done since that, I po, well, not so shabby at all, especially given last year's big plunge.

Yes, previously known as Facebook at that time had a very very difficult first couple of months. But if we take a look at what Facebook has done, Meta has done since that, I po, well, not so shabby at all, especially given last year's big plunge.

It's really come back.

It's really come back.

So you know, it's just too early to say what's going on with these IPOs A bit.

So you know, it's just too early to say what's going on with these IPOs A bit.

That's why people say I'm a long term investor.

That's why people say I'm a long term investor.

Yes, that is a that is a perfect chart for the idea of a long term investor, not a trader.

Yes, that is a that is a perfect chart for the idea of a long term investor, not a trader.

Bloomberg's Abagail do Little the b chartress name on point.

Bloomberg's Abagail do Little the b chartress name on point.

Thank you so much.

Thank you so much.

Okay, let's stick with the IPO market and bring in our next guest. It has been a busy few days, right carro with three listing, some on the Nasdaq, some on the New York Stock Exchange. Let's go to the Nasdack side of this story and bring in Jeff Thomas. And Jeff I want to start by asking you, you know, we say here on the Bloomberg Technology Show, the euphoria of the IPO winding opening up was short lived. Is that your conclusion as well.

Okay, let's stick with the IPO market and bring in our next guest. It has been a busy few days, right carro with three listing, some on the Nasdaq, some on the New York Stock Exchange. Let's go to the Nasdack side of this story and bring in Jeff Thomas. And Jeff I want to start by asking you, you know, we say here on the Bloomberg Technology Show, the euphoria of the IPO winding opening up was short lived. Is that your conclusion as well.

I think, you know, companies look at the IPO as a moment in time.

I think, you know, companies look at the IPO as a moment in time.

It's a financing event.

It's a financing event.

It creates great opportunities for liquidity for their shareholders, creates an acquisition currency by their stock. So I don't think they get too hung up on exactly how their stocks trading day day to day. If you look at what's happening this week, you know, we had kind of a hawkish pause by the Fed yesterday where again they paused rates but had some hawkish overtones. So of course that's going to drive them macro. That's going to drive some of these stocks. But when you look at the pipeline that we've got with some great companies lined up to get out to the market both in Q four and a really strong pipeline in the first half of next year, I think there's still a lot of reasons to be optimistic. The VIX continues to be relatively low, indices are still well up for the year, and I think companies that raised capital back in twenty twenty and twenty twenty one i'll really some pretty healthy valuations. They're going to need to go back and raise another round of capital, and so it'll be a choice do they want to raise that capital privately or do they want to tap the public markets. And I think there's a lot of reasons to expect that many of them will come to the public markets.

It creates great opportunities for liquidity for their shareholders, creates an acquisition currency by their stock. So I don't think they get too hung up on exactly how their stocks trading day day to day. If you look at what's happening this week, you know, we had kind of a hawkish pause by the Fed yesterday where again they paused rates but had some hawkish overtones. So of course that's going to drive them macro. That's going to drive some of these stocks. But when you look at the pipeline that we've got with some great companies lined up to get out to the market both in Q four and a really strong pipeline in the first half of next year, I think there's still a lot of reasons to be optimistic. The VIX continues to be relatively low, indices are still well up for the year, and I think companies that raised capital back in twenty twenty and twenty twenty one i'll really some pretty healthy valuations. They're going to need to go back and raise another round of capital, and so it'll be a choice do they want to raise that capital privately or do they want to tap the public markets. And I think there's a lot of reasons to expect that many of them will come to the public markets.

Speaking to your colleague Karen last week on the day of the arm listing, Jeff, and when you're looking at one hundred and fifty seven active s ones or f one file, how many of those companies that are eyeing the markets are going to have to use the play But we've just seen Cornerstone Investors Limited supply to ensure you get that initial pop, given well, Instacata is on the downside already.

Speaking to your colleague Karen last week on the day of the arm listing, Jeff, and when you're looking at one hundred and fifty seven active s ones or f one file, how many of those companies that are eyeing the markets are going to have to use the play But we've just seen Cornerstone Investors Limited supply to ensure you get that initial pop, given well, Instacata is on the downside already.

Well, look, I think it's all about how you want to build your book. Companies are always going to want to have those long term anchor investors. There's always going to be room for some companies that or some investors that are going to be short term in nature.

Well, look, I think it's all about how you want to build your book. Companies are always going to want to have those long term anchor investors. There's always going to be room for some companies that or some investors that are going to be short term in nature.

And that's because, honestly.

And that's because, honestly.

When you look at the opening cross where we're bringing together buyers and sellers for that all important first trade through our technology called the IPO Book Viewer, the only people that can sell into that transaction are the people that got shares on the IPO. So there's of course going to be buyers that got fewer shares than they wanted. Those are going to be the ones that are looking to acquire more shares, And then you've got to have some sellers in there as well. That's why we see the stabilization. A agent sometimes taking an hour to even three hours to open these stocks because a lot of times it's having to flush out the sellers and find people that are looking to unload the stock in addition to all the long term shareholders that they bring in through the IPO.

When you look at the opening cross where we're bringing together buyers and sellers for that all important first trade through our technology called the IPO Book Viewer, the only people that can sell into that transaction are the people that got shares on the IPO. So there's of course going to be buyers that got fewer shares than they wanted. Those are going to be the ones that are looking to acquire more shares, And then you've got to have some sellers in there as well. That's why we see the stabilization. A agent sometimes taking an hour to even three hours to open these stocks because a lot of times it's having to flush out the sellers and find people that are looking to unload the stock in addition to all the long term shareholders that they bring in through the IPO.

Yeah, that was a key no hour that we're talking well this time last week around on Jeff. I'm interested there for as to who's coming in to want to be that demand, that marginal purchaser. Is it we're getting more retail interest? Does it largely tend to be the institutions that are willing to take the risk right now?

Yeah, that was a key no hour that we're talking well this time last week around on Jeff. I'm interested there for as to who's coming in to want to be that demand, that marginal purchaser. Is it we're getting more retail interest? Does it largely tend to be the institutions that are willing to take the risk right now?

Yeah, I think it's really the institutional investors that are going to be the major major.

Yeah, I think it's really the institutional investors that are going to be the major major.

Buyers of IPOs.

Buyers of IPOs.

You know, you kind of look at how the class of twenty twenty and twenty twenty one perform. Obviously a lot of those didn't turn out the way that the investors were hoping to Now you come into this year again, the indices are up, the volatility is low. They're going to be looking for ways to differentiate, and that means they're going to have to take some risks in terms of some new issues. So we see a lot of demand on the buy side. I think, really what it is, it's the companies coming to market, the banker's kind of adjusting the valuations to match the expectations of the market, and of course that all important narrative around profitable growth and not just growth at all costs.

You know, you kind of look at how the class of twenty twenty and twenty twenty one perform. Obviously a lot of those didn't turn out the way that the investors were hoping to Now you come into this year again, the indices are up, the volatility is low. They're going to be looking for ways to differentiate, and that means they're going to have to take some risks in terms of some new issues. So we see a lot of demand on the buy side. I think, really what it is, it's the companies coming to market, the banker's kind of adjusting the valuations to match the expectations of the market, and of course that all important narrative around profitable growth and not just growth at all costs.

You know, I want to go back to something that Caroline pointed out that if there is anything in common across the last week, it was the Cornerstone investor the small flow. But I get what you just said about the buyers, But these some of these IPOs were like ten x oversubscribed. Why is there not the same tenex demand three days of trading in.

You know, I want to go back to something that Caroline pointed out that if there is anything in common across the last week, it was the Cornerstone investor the small flow. But I get what you just said about the buyers, But these some of these IPOs were like ten x oversubscribed. Why is there not the same tenex demand three days of trading in.

You know, I think there's always going to be buyers at different price levels. And again, what you have to remember here is that companies are laying out their vision for the future, that they're saying, here's where we can get to in terms of revenue, in terms of earnings, and so the investors are going to be watching not just in the first few days after the IPO, but.

You know, I think there's always going to be buyers at different price levels. And again, what you have to remember here is that companies are laying out their vision for the future, that they're saying, here's where we can get to in terms of revenue, in terms of earnings, and so the investors are going to be watching not just in the first few days after the IPO, but.

The first few quarters.

The first few quarters.

And that's really what's going to determine the success of these companies is can they come out of the gates strong, can they hit their numbers in the first few quarters. And I think that's really what's going to tell the story IPO market versus the first few days of trading.

And that's really what's going to determine the success of these companies is can they come out of the gates strong, can they hit their numbers in the first few quarters. And I think that's really what's going to tell the story IPO market versus the first few days of trading.

We were just talking about long term investment THESS following on from the Messa listing years and years ago. Jeff Thomas, and we thank you so much, executive vice president of Nasdak's Corporate Platforms.

We were just talking about long term investment THESS following on from the Messa listing years and years ago. Jeff Thomas, and we thank you so much, executive vice president of Nasdak's Corporate Platforms.

Right time for talking tech.

Right time for talking tech.

First off, Japanese electronics company Toshiba is clearing.

First off, Japanese electronics company Toshiba is clearing.

A new path to go private.

A new path to go private.

It received a thirteen point five billion dollar buyout from the Japan Industrial Partner's private equity fund, which now holds nearly eighty percent of all the company's shares.

It received a thirteen point five billion dollar buyout from the Japan Industrial Partner's private equity fund, which now holds nearly eighty percent of all the company's shares.

The deal pays the way.

The deal pays the way.

For the fund to squeeze out the remaining shareholders and take full control of the company. And Google's considering dropping chip maker Broadcom as a supplier of AI chips as soon as twenty twenty seven. That's according to report from The Information. Apparently, Google executives has set out a goal earlier this year to move away from Broadcom after a standoff over the cost of its chips. However, in the last few minutes, Google has just issued a statement saying it sees quote no change in its relationship with Broadcon. Broadcompared some of his stock declients plus in Video is betting on India's potential to become a key global market for AI. During a trip to the country earlier this month, CEO Jensen Hwang visited multiple cities and met with leaders, including Prime Minister Mody Caroline.

For the fund to squeeze out the remaining shareholders and take full control of the company. And Google's considering dropping chip maker Broadcom as a supplier of AI chips as soon as twenty twenty seven. That's according to report from The Information. Apparently, Google executives has set out a goal earlier this year to move away from Broadcom after a standoff over the cost of its chips. However, in the last few minutes, Google has just issued a statement saying it sees quote no change in its relationship with Broadcon. Broadcompared some of his stock declients plus in Video is betting on India's potential to become a key global market for AI. During a trip to the country earlier this month, CEO Jensen Hwang visited multiple cities and met with leaders, including Prime Minister Mody Caroline.

Fascinating global perspective.

Fascinating global perspective.

Meanwhile, I mean, let's just stick on the world of artificial intelligence, because this week we've had so much Amazon, Google both integrating more generative AI products into their offerings.

Meanwhile, I mean, let's just stick on the world of artificial intelligence, because this week we've had so much Amazon, Google both integrating more generative AI products into their offerings.

Well, today we've got some similar news out of Microsoft.

Well, today we've got some similar news out of Microsoft.

The company will start rolling out as AI Assistant from Windows as soon as Tuesday. Will be widely available in office apps starting November the first This is for corporate customers. We're going to be bringing in now Rishid Juluria, it's managing director of Software Equitan Research over at RBC Capital Markets. Currently on an outform rating on the shares of Microsoft. And what is this to show you about the ability to integrate underlying technology largely coming from open AI that quickly into its own product offerings.

The company will start rolling out as AI Assistant from Windows as soon as Tuesday. Will be widely available in office apps starting November the first This is for corporate customers. We're going to be bringing in now Rishid Juluria, it's managing director of Software Equitan Research over at RBC Capital Markets. Currently on an outform rating on the shares of Microsoft. And what is this to show you about the ability to integrate underlying technology largely coming from open AI that quickly into its own product offerings.

Yeah, and thanks so much for having me. Look.

Yeah, and thanks so much for having me. Look.

I think this shows us a couple of things, right. It shows us that Microsoft isn't selling vaporware. The fact that there's a timeline on getting Windows Copilot out, that's as you mentioned in five days. The fact that we're talking forty days until Office U sixty five copilot comes out. This is incredible timing and contrast that with what we see alswhere and enterprise software micros off.

I think this shows us a couple of things, right. It shows us that Microsoft isn't selling vaporware. The fact that there's a timeline on getting Windows Copilot out, that's as you mentioned in five days. The fact that we're talking forty days until Office U sixty five copilot comes out. This is incredible timing and contrast that with what we see alswhere and enterprise software micros off.

Is clearly boo moving really quickly.

Is clearly boo moving really quickly.

What I think is two things that really come out to this for me. Number one is Microsoft is actually integrating all of these aspects. So your Office rough cty five copilot talks to your Windows Copilot, talks to your browser, talks to your Bing copilot. So there's actually a very integrated generative AI experience across the entire Microsoft stack, which I think is incredible and really showcases the portfolio approach Microsoft has. The second thing is, you know, the question we have to ask is how is Microsoft able to move soft fast. Remember, they have a huge headstart versus anyone else because they invested in open AI going back to twenty nineteen.

What I think is two things that really come out to this for me. Number one is Microsoft is actually integrating all of these aspects. So your Office rough cty five copilot talks to your Windows Copilot, talks to your browser, talks to your Bing copilot. So there's actually a very integrated generative AI experience across the entire Microsoft stack, which I think is incredible and really showcases the portfolio approach Microsoft has. The second thing is, you know, the question we have to ask is how is Microsoft able to move soft fast. Remember, they have a huge headstart versus anyone else because they invested in open AI going back to twenty nineteen.

And you know, Microsoft was, you know, deeply.

And you know, Microsoft was, you know, deeply.

Thinking about generative AI long before chat tpt became a household name, you know, almost about a year ago.

Thinking about generative AI long before chat tpt became a household name, you know, almost about a year ago.

They Richie You pointed out they're integrating this into existing platforms. And Microsoft has always been really good at selling software that loads of others give away for free. So my question is do they grow sales by doing this, by this investment in AI.

They Richie You pointed out they're integrating this into existing platforms. And Microsoft has always been really good at selling software that loads of others give away for free. So my question is do they grow sales by doing this, by this investment in AI.

I think the answer to that is absolutely yes.

I think the answer to that is absolutely yes.

There's going to be certain areas where you know, they're not going to directly charge for generative AI. It's more going to be about gaining market share, like on the dynamic stack, right. But if you think about Microsoft through sixty five copilot, that is something that I believe they were distinctly charged for a lot of these other open AI services, especially built on Azure, they get monetized indirectly through underlying stories and consumption because it's on a consumption model. So I absolutely think this translates into better revenue numbers for Microsoft. And we're already seeing that, right. I mean, as much as we can talk about how jen AAI is still really early. Remember Microsoft is already doing more than half a billion dollars of generative AI revenue two quarters after launching this, and that number is probably going to get to you know, two five ten billion dollars before we know it.

There's going to be certain areas where you know, they're not going to directly charge for generative AI. It's more going to be about gaining market share, like on the dynamic stack, right. But if you think about Microsoft through sixty five copilot, that is something that I believe they were distinctly charged for a lot of these other open AI services, especially built on Azure, they get monetized indirectly through underlying stories and consumption because it's on a consumption model. So I absolutely think this translates into better revenue numbers for Microsoft. And we're already seeing that, right. I mean, as much as we can talk about how jen AAI is still really early. Remember Microsoft is already doing more than half a billion dollars of generative AI revenue two quarters after launching this, and that number is probably going to get to you know, two five ten billion dollars before we know it.

And you heard really talking about how it's the second half of their fiscal year whether this is going to rump up Rishie.

And you heard really talking about how it's the second half of their fiscal year whether this is going to rump up Rishie.

Great to have your analysis.

Great to have your analysis.

Thank you so much, mischie Julurier, he's over at RBC Capital Markets.

Thank you so much, mischie Julurier, he's over at RBC Capital Markets.

Welcome back to New meg Technology.

Welcome back to New meg Technology.

I'm Caroline Hyde and I'm me Dudlow. Let's get a quit check on the market. It's at a high level. It really is the Fed in economics that are driving these markets under performance in tech and aw's that one hundred down one point three percent yesterday. The Fed holds rates as expected. We get economic data on Thursday morning that just re enforces this idea that the Fed leaves rates higher for longer.

I'm Caroline Hyde and I'm me Dudlow. Let's get a quit check on the market. It's at a high level. It really is the Fed in economics that are driving these markets under performance in tech and aw's that one hundred down one point three percent yesterday. The Fed holds rates as expected. We get economic data on Thursday morning that just re enforces this idea that the Fed leaves rates higher for longer.

But AI is also.

But AI is also.

Story when you think about specific movers on the Nasdaq one hundred, the two. I'm looking at Microsoft in Amazon. Actually Microsoft is paired much of its gain after giving us those dates. We just went over for the release of generative AI tools co Pilot and Office coming November one. Now completely flat, flat as a pancake. But Amazon is really accelerating its declines three point five percent. It fell yesterday as well after it announced its generative AI offering in the context of elect So we had Dave Lint, the outgoing devices chief, on the show. It really didn't do much to persuade investors to buy into this stock right now. The idea that they've brought AI to their hardware offering. Caroline that, of course a big points drag on an Azdak one hundred right now.

Story when you think about specific movers on the Nasdaq one hundred, the two. I'm looking at Microsoft in Amazon. Actually Microsoft is paired much of its gain after giving us those dates. We just went over for the release of generative AI tools co Pilot and Office coming November one. Now completely flat, flat as a pancake. But Amazon is really accelerating its declines three point five percent. It fell yesterday as well after it announced its generative AI offering in the context of elect So we had Dave Lint, the outgoing devices chief, on the show. It really didn't do much to persuade investors to buy into this stock right now. The idea that they've brought AI to their hardware offering. Caroline that, of course a big points drag on an Azdak one hundred right now.

And let's meanwhile, of course, talk about how AI is interweaving itself into just about everything, calling, of course, the discourse of leaders from around the world. They gathered right here in New York City this week for the seventy eighth session of the UN General Assembly, and as they discussed the biggest issues facing the planet. Yes, you've got climate change, Yes, of course you've got the war in Ukraine. But you've also been having more and more on tech and artificial intelligence. In fact, President Biden called on world's countries to regulate artificial intelligence so that it doesn't so called govern us. As part of his speech at the Assembly earlier this week. Meanwhile, former UK Prime Minister Tony Blair he actually sat down with our own David Western and was talking about how AI perhaps what ought to change government.

And let's meanwhile, of course, talk about how AI is interweaving itself into just about everything, calling, of course, the discourse of leaders from around the world. They gathered right here in New York City this week for the seventy eighth session of the UN General Assembly, and as they discussed the biggest issues facing the planet. Yes, you've got climate change, Yes, of course you've got the war in Ukraine. But you've also been having more and more on tech and artificial intelligence. In fact, President Biden called on world's countries to regulate artificial intelligence so that it doesn't so called govern us. As part of his speech at the Assembly earlier this week. Meanwhile, former UK Prime Minister Tony Blair he actually sat down with our own David Western and was talking about how AI perhaps what ought to change government.

The big real world event is this technology revolution, and particularly with generative AI, it's going to check everything. It's going to change the way we live, the way we work. It should change government by the way the way government operates, the way public services operate. It's got enormous potential to change the healthcare system for the better. But then there are huge risks. Because it's a general purpose technology. You can use it for bad as well as for good.

The big real world event is this technology revolution, and particularly with generative AI, it's going to check everything. It's going to change the way we live, the way we work. It should change government by the way the way government operates, the way public services operate. It's got enormous potential to change the healthcare system for the better. But then there are huge risks. Because it's a general purpose technology. You can use it for bad as well as for good.

Oh.

Oh.

I mean all of this comes as we prepare ourselves for the UK to host its first ever Global AI Safety Summit's coming in early November, convening international governments, industry experts. We understand Kamala Harris is going to be flying over for it.

I mean all of this comes as we prepare ourselves for the UK to host its first ever Global AI Safety Summit's coming in early November, convening international governments, industry experts. We understand Kamala Harris is going to be flying over for it.

Let's just talk.

Let's just talk.

About all of the AI presence and UK's well focus on it as Joe White's with US UK Tech Ambassador and you're sat there in San Francisco day to day role really trying to export the UK to these big Silicon Valley giants tech giants of the US saying.

About all of the AI presence and UK's well focus on it as Joe White's with US UK Tech Ambassador and you're sat there in San Francisco day to day role really trying to export the UK to these big Silicon Valley giants tech giants of the US saying.

Look, this is what the UK has to offer.

Look, this is what the UK has to offer.

Why is the UK so focused on putting its stake in the ground when it comes to AI?

Why is the UK so focused on putting its stake in the ground when it comes to AI?

Pleasure to be here, wanting no thank you?

Pleasure to be here, wanting no thank you?

The UK US is one of the only leading economies which has some of these frontier AI labs, Google deep Mind being founded there more than ten years ago. Now for the top ten global universities, we have an enormous base of talent and research around AI as a sector and I think Prime Minister Suna really understands the importance of this and to a certain the reason the AI Safety Summit is created as is is to in order to unleash the enormous potential of AI for positive change both in the UK and around the world. Getting some of those initial guardrails and that common understanding globally is incredibly important to keeping us safe with this technology as it.

The UK US is one of the only leading economies which has some of these frontier AI labs, Google deep Mind being founded there more than ten years ago. Now for the top ten global universities, we have an enormous base of talent and research around AI as a sector and I think Prime Minister Suna really understands the importance of this and to a certain the reason the AI Safety Summit is created as is is to in order to unleash the enormous potential of AI for positive change both in the UK and around the world. Getting some of those initial guardrails and that common understanding globally is incredibly important to keeping us safe with this technology as it.

Develops, Joones, does the UK genuinely believe it has a leadership role in the field of AI, or, if you're honest with yourself, is the UK moving quickly to catch up?

Develops, Joones, does the UK genuinely believe it has a leadership role in the field of AI, or, if you're honest with yourself, is the UK moving quickly to catch up?

Now?

Now?

I think the UK genuinely does have a leadership position in this. As I said, a lot of the fundamental AI research has been done in the UK's extraordinary university based for years. When Demis founded deep Mind, he did so in the UK. He was keen to keep it there. We're seeing now with Open AI and Anthropic and others, when they open their first international offices, they're choosing the UK. The pool of talent there is pretty extraordinary and I think the UK has a quite a unique global role as convena to bring together countries from across the world to talk about some of these major risks and issues, whiles still having very much its own position in the AI race with a lot of the companies and labs which are based in the UK.

I think the UK genuinely does have a leadership position in this. As I said, a lot of the fundamental AI research has been done in the UK's extraordinary university based for years. When Demis founded deep Mind, he did so in the UK. He was keen to keep it there. We're seeing now with Open AI and Anthropic and others, when they open their first international offices, they're choosing the UK. The pool of talent there is pretty extraordinary and I think the UK has a quite a unique global role as convena to bring together countries from across the world to talk about some of these major risks and issues, whiles still having very much its own position in the AI race with a lot of the companies and labs which are based in the UK.

Well, exactly so the race with the companies. You know, Cambridge one is one of the leading supercomputers in the world, built on Nvidia DGX, largely for the healthcare use case. I'm really interested in your day to day Joe. I know that the UK is negotiating with the GPU makers. Have you yourself held talks within Video or AMD and Intel to secure the computes for the future work the UK hopes to do in the field of AI.

Well, exactly so the race with the companies. You know, Cambridge one is one of the leading supercomputers in the world, built on Nvidia DGX, largely for the healthcare use case. I'm really interested in your day to day Joe. I know that the UK is negotiating with the GPU makers. Have you yourself held talks within Video or AMD and Intel to secure the computes for the future work the UK hopes to do in the field of AI.

Well, we feel a number of visitors here.

Well, we feel a number of visitors here.

We've actually got the Chancellor here this week who's engaging across the West coast in San Francisco, LA and then Seattle, and so we do talk with both big cloud providers as well as the big chip suppliers to talk about the UK's needs and of course willing to increase the amount of compute capacity that we have in the UK. The chance committed to about nine hundred million pounds for an AI supercomputer which was announced in the last budget, as well as the AI Task Force, which is now having a specific GPU cluster built for.

We've actually got the Chancellor here this week who's engaging across the West coast in San Francisco, LA and then Seattle, and so we do talk with both big cloud providers as well as the big chip suppliers to talk about the UK's needs and of course willing to increase the amount of compute capacity that we have in the UK. The chance committed to about nine hundred million pounds for an AI supercomputer which was announced in the last budget, as well as the AI Task Force, which is now having a specific GPU cluster built for.

AI safety research.

AI safety research.

Jeremy Hant was fielding a fair few questions on China and the fact that the UK decided to invite the Chinese delegation to this AI safety summit.

Jeremy Hant was fielding a fair few questions on China and the fact that the UK decided to invite the Chinese delegation to this AI safety summit.

Joe, do you.

Joe, do you.

Defend that decision as well?

Defend that decision as well?

I think AI will be a global both benefit and challenge, and I think it's a technology which will be relatively borderless, and so I think the UK recognizes that for us to get the kind of benefits that we want, we also have to have a baseline of technology and the Foreign Secretory confirmed earlier this week that we have in fact invited to China to the summit now for them to determine who they will send and how they will engage. But I think there are common issues that we can all agree on. I think again, this is where the UK has a great space as convener to bring different parties together to get that initial baseline.

I think AI will be a global both benefit and challenge, and I think it's a technology which will be relatively borderless, and so I think the UK recognizes that for us to get the kind of benefits that we want, we also have to have a baseline of technology and the Foreign Secretory confirmed earlier this week that we have in fact invited to China to the summit now for them to determine who they will send and how they will engage. But I think there are common issues that we can all agree on. I think again, this is where the UK has a great space as convener to bring different parties together to get that initial baseline.

I think it's interesting that Nick Klegg's also been invested. I was with him yesterday having a discussion about the future of AI regulation and he almost called it a frenzy of everyone trying to be hosting these discussions AI summit with the UK. You've got the G seven meeting in November two in Japan, the Hiroshima AI process as they call it. You've just had government here in the United States convening the most powerful AI CEOs plus civil society. Is this just like a rush of discussion but nothing actually happening.

I think it's interesting that Nick Klegg's also been invested. I was with him yesterday having a discussion about the future of AI regulation and he almost called it a frenzy of everyone trying to be hosting these discussions AI summit with the UK. You've got the G seven meeting in November two in Japan, the Hiroshima AI process as they call it. You've just had government here in the United States convening the most powerful AI CEOs plus civil society. Is this just like a rush of discussion but nothing actually happening.

Well, No, the UK's in touch with all the organizers of these events and sees the Safety Summit very much just building on these pieces. When Zunak agreed this with Biden back in June for the UK Safety Summit, it was really based on the existing White House commitments. So we're not trying to diverge from these things and the specific focus of the Safety Summit, which is on the frontier risks AI posts both short, medium and long term challenges, let's say, and the specific ones that the summon is looking at is things like the risks posed by frontier models I think, like biosecurity and so on. But this will really build on the commitments made of the White House and in some ways demonstrate how these are being operationalized by the companies.

Well, No, the UK's in touch with all the organizers of these events and sees the Safety Summit very much just building on these pieces. When Zunak agreed this with Biden back in June for the UK Safety Summit, it was really based on the existing White House commitments. So we're not trying to diverge from these things and the specific focus of the Safety Summit, which is on the frontier risks AI posts both short, medium and long term challenges, let's say, and the specific ones that the summon is looking at is things like the risks posed by frontier models I think, like biosecurity and so on. But this will really build on the commitments made of the White House and in some ways demonstrate how these are being operationalized by the companies.

Now, it's all coming back to regulation and actually where does the UK sit within that? Joe, You're sort of trying to straddle a relatively easy regulation as the global world tends to view the US. You've got stricter EU pushing through regulation very quickly.

Now, it's all coming back to regulation and actually where does the UK sit within that? Joe, You're sort of trying to straddle a relatively easy regulation as the global world tends to view the US. You've got stricter EU pushing through regulation very quickly.

But then you think of the CMA.

But then you think of the CMA.

Dare I say at flip Flop on Activision Blizzard, I'm thinking of new digital competition rules coming in Joe. How do these big tech companies view the UK's regulation.

Dare I say at flip Flop on Activision Blizzard, I'm thinking of new digital competition rules coming in Joe. How do these big tech companies view the UK's regulation.

Well, the UK has a real strength in its regulators. I think the UK is widely seen as having sensible, engaged proportion at regulation. We do have independent regulators. So as the chance of saying you can't always get the regulator necessarily to do what they want from a political perspective, that's in fact a feature, not a bug. But I think the UK's history process of law engagement and now you saw this with our AI white paper published earlier in the year. We're not standing up a different body for AI regulation, but in fact get our existing regulators, whether across health or education or broadcast, to look at the specific AI challenges within their sector and therefore you get the expertise and the ability to adapt within that. So the UK does see AI as one of those areas that needs that ongoing iterative conversation with regulators, but not where we need to create perscriptive rules which may turn out to be added day quite quickly.

Well, the UK has a real strength in its regulators. I think the UK is widely seen as having sensible, engaged proportion at regulation. We do have independent regulators. So as the chance of saying you can't always get the regulator necessarily to do what they want from a political perspective, that's in fact a feature, not a bug. But I think the UK's history process of law engagement and now you saw this with our AI white paper published earlier in the year. We're not standing up a different body for AI regulation, but in fact get our existing regulators, whether across health or education or broadcast, to look at the specific AI challenges within their sector and therefore you get the expertise and the ability to adapt within that. So the UK does see AI as one of those areas that needs that ongoing iterative conversation with regulators, but not where we need to create perscriptive rules which may turn out to be added day quite quickly.

You know, Jerry, I get the UK is developing a position on AI, and you have an outgoing message. But you're in San Francisco and you're talking to tech, you're talking to allies. What is the biggest question you get from them, the inbound about what you t can offer.

You know, Jerry, I get the UK is developing a position on AI, and you have an outgoing message. But you're in San Francisco and you're talking to tech, you're talking to allies. What is the biggest question you get from them, the inbound about what you t can offer.

Well, I think folks really do see the UK as the first natural expansion point from the US often really going to Europe. UK is still the first place that is chosen to go into. And we've had this conversation. Recently with that, we saw Andrews and Horowitz announce their new office outside the US in the UK during London Tech Week earlier, and so I think folks really do continue to see the UK as the first natural choice externally. They're fascinated in the regulator environment that you do see the UK as having a fantastic tech sector. It's only third tech sector now valued more than the trillion dollars more, more unicorns in the UK than France, Germany and the nord it's combined, and so they recognize that talent, they recognize the regulatory adaptability that's there, and so they're very keen to understand how the UK is going to continue to develop its position there.

Well, I think folks really do see the UK as the first natural expansion point from the US often really going to Europe. UK is still the first place that is chosen to go into. And we've had this conversation. Recently with that, we saw Andrews and Horowitz announce their new office outside the US in the UK during London Tech Week earlier, and so I think folks really do continue to see the UK as the first natural choice externally. They're fascinated in the regulator environment that you do see the UK as having a fantastic tech sector. It's only third tech sector now valued more than the trillion dollars more, more unicorns in the UK than France, Germany and the nord it's combined, and so they recognize that talent, they recognize the regulatory adaptability that's there, and so they're very keen to understand how the UK is going to continue to develop its position there.

Joe White, UK Tech combatsastor that they're really really appreciate having you here on Bloombow Technology add a SX pleasure.

Joe White, UK Tech combatsastor that they're really really appreciate having you here on Bloombow Technology add a SX pleasure.

Thank you so much.

Thank you so much.

All Right, coming up here on the show, AI co pilots are all the rage, and we're going to be joined by Duck Bill co founder Meghan Joyce and four Run Adventures Kirston Green for more on that conversation next and exciting news coming from those two.

All Right, coming up here on the show, AI co pilots are all the rage, and we're going to be joined by Duck Bill co founder Meghan Joyce and four Run Adventures Kirston Green for more on that conversation next and exciting news coming from those two.

This is Bloomberg technology.

This is Bloomberg technology.

Are the joy of.

Are the joy of.

The idea of a tech driven personal assistant. It's long kind of been a bold ambision of Silicon Valley got Siri, Alexa in task Rabbit.

The idea of a tech driven personal assistant. It's long kind of been a bold ambision of Silicon Valley got Siri, Alexa in task Rabbit.

To do the physical.

To do the physical.

But with recent AI advancements, there's a personal assistant that perhaps could be actually the next level and around the corner. Now, this is what duck Bill is promising. It's an AI powered personal assistant tackling.

But with recent AI advancements, there's a personal assistant that perhaps could be actually the next level and around the corner. Now, this is what duck Bill is promising. It's an AI powered personal assistant tackling.

Consumers to do lists. The company has recently come out of stealth.

Consumers to do lists. The company has recently come out of stealth.

They've just raised yet another round of money twenty five million dollars Series A, and it's being led by four Unadventures. We're very pleased to welcome therefore four Runners founding partner Kirstin Green.

They've just raised yet another round of money twenty five million dollars Series A, and it's being led by four Unadventures. We're very pleased to welcome therefore four Runners founding partner Kirstin Green.

He's also been joined by on the board of duck Bill.

He's also been joined by on the board of duck Bill.

She's going to be alongside Duckville CEO and co found of Megan Joyce Meghan be Causin.

She's going to be alongside Duckville CEO and co found of Megan Joyce Meghan be Causin.

It's great to have you both.

It's great to have you both.

With us, and Meg and I start with you, because boy, if we've got a day of talking of these assistants basically co pilots Microsoft announcing their Microsoft three six five Copilot two. They're also being run and built on open AIS underlying foundational models.

With us, and Meg and I start with you, because boy, if we've got a day of talking of these assistants basically co pilots Microsoft announcing their Microsoft three six five Copilot two. They're also being run and built on open AIS underlying foundational models.

What makes les different.

What makes les different.

So what makes Duckbill unique is the fact that we combine two things, the best of expert humans who add the personal touch and nuance to your tasks, along with AI tooling that allows efficiency and breadth and scale of the underlying legwork. So Duckbill's personal assistance are assigned to tasks and they use custom built AI tooling that leverage existing large language models with our own fine tuning and retrieval augmented generation to fulfill tasks. And what that allows us to do is to actually tackle the long tail of to do's and the tasks you dread most end to end, including what AI can handle and where AI bumps up against limits and the human can take the baton kusin.

So what makes Duckbill unique is the fact that we combine two things, the best of expert humans who add the personal touch and nuance to your tasks, along with AI tooling that allows efficiency and breadth and scale of the underlying legwork. So Duckbill's personal assistance are assigned to tasks and they use custom built AI tooling that leverage existing large language models with our own fine tuning and retrieval augmented generation to fulfill tasks. And what that allows us to do is to actually tackle the long tail of to do's and the tasks you dread most end to end, including what AI can handle and where AI bumps up against limits and the human can take the baton kusin.

To that point, you must be bombarded with companies offering AI services. You have made the name really of foreign adventures backing some really well companies that blew out in terms of the consumer. How is dug Bale setting itself apart? Why write this check?

To that point, you must be bombarded with companies offering AI services. You have made the name really of foreign adventures backing some really well companies that blew out in terms of the consumer. How is dug Bale setting itself apart? Why write this check?

Thank you for the question. So you know, I think, as you mentioned, there are there's a tremendous amount of activity in the AI space right now. The venture industry is rightfully I think really excited about. AI represents a major leap for technology. There really are two major ways that AI, you know, companies are approaching AI. One is the architecture, architecting the foundation for the AI and the industry, and the other is really implementing and using AI to deliver business efficiencies or better and even all new products and services. And Duckbille really falls into the latter. So this notion of a digital assistant has really been on people's minds for a long time. We've heard about it over the years. If only I could have help with my to do list, if only I could manage my busy life, I never see.

Thank you for the question. So you know, I think, as you mentioned, there are there's a tremendous amount of activity in the AI space right now. The venture industry is rightfully I think really excited about. AI represents a major leap for technology. There really are two major ways that AI, you know, companies are approaching AI. One is the architecture, architecting the foundation for the AI and the industry, and the other is really implementing and using AI to deliver business efficiencies or better and even all new products and services. And Duckbille really falls into the latter. So this notion of a digital assistant has really been on people's minds for a long time. We've heard about it over the years. If only I could have help with my to do list, if only I could manage my busy life, I never see.

The bottom of my two do list.

The bottom of my two do list.

The first generation of offerings like Siri and Alexa, they were delivering some value along those lines, but I don't think they've scaled anywhere near to kind of what the most ambitious hope was for the potential there. And AI really changes all of this. And in the case of Duckbill, as Megan reference, the integration of AI and human in the loop offers the ability to contextualize discovery and execution, and that really feels like it changes the game for the consumer in making an offering like an AI assistant or a digital assistant valuable. It enables a business model that we think is scalable and compelling.

The first generation of offerings like Siri and Alexa, they were delivering some value along those lines, but I don't think they've scaled anywhere near to kind of what the most ambitious hope was for the potential there. And AI really changes all of this. And in the case of Duckbill, as Megan reference, the integration of AI and human in the loop offers the ability to contextualize discovery and execution, and that really feels like it changes the game for the consumer in making an offering like an AI assistant or a digital assistant valuable. It enables a business model that we think is scalable and compelling.

So there's days I wake up, you know, my wife's left to post it note on the phrase where she just stuck it to my forehead, and I think, if only I could do those things. But here's the thing, duck Bill, Megan, is ninety nine dollars a month.

So there's days I wake up, you know, my wife's left to post it note on the phrase where she just stuck it to my forehead, and I think, if only I could do those things. But here's the thing, duck Bill, Megan, is ninety nine dollars a month.

How do you arrive at that?

How do you arrive at that?

So we've found over the course of our year long beta that that's the price point at which we can support unlimited tasks for the vast majority of users.

So we've found over the course of our year long beta that that's the price point at which we can support unlimited tasks for the vast majority of users.

And we look at it as the uber.

And we look at it as the uber.

Black version of what duck Bill is today, moving towards a more mass market product built on the learnings of that premium offering.

Black version of what duck Bill is today, moving towards a more mass market product built on the learnings of that premium offering.

And so what we are.

And so what we are.

Excited about is continuing to serve more and more people with that premium price point subscription and learning from that to eventually serve the people who need it most, who are the mass market, the people who cannot afford a personal assistant but deserve help just like anybody else from mass And by continuing no, no, no, sorry to jumping Meghan, I know, I mean I find that business concept fascinating Uber Black to the mass market model.

Excited about is continuing to serve more and more people with that premium price point subscription and learning from that to eventually serve the people who need it most, who are the mass market, the people who cannot afford a personal assistant but deserve help just like anybody else from mass And by continuing no, no, no, sorry to jumping Meghan, I know, I mean I find that business concept fascinating Uber Black to the mass market model.

You needed the funds to do that.

You needed the funds to do that.

In Kirstin coming out of self with this kind of money, that's a lot, and it's interesting you going to take a board seat. What are you going to be advising Meghan to do in the next few months as they get off the ground.

In Kirstin coming out of self with this kind of money, that's a lot, and it's interesting you going to take a board seat. What are you going to be advising Meghan to do in the next few months as they get off the ground.

Well, certainly one of the most compelling parts of the investment was the opportunity to work with Megan, who is an experienced executive and in many ways has led companies in similar endeavors related to Duckbill. So I'm looking forward to learning with her and from her. But you know, as we mentioned earlier, the question was posed about this is a consumer product. This is about delighting a consumer, meeting a customer's need, resonating with the consumer. I certainly hope that our years of experience in living in the heads of consumers and working with some great founders that brought products that have become you what is to life is something we can do here at duck Bill. Also, I think, as Megan articulated, like Uber Black, you know, duck Bill Black is the start, but the vision really is to reach mass audiences and help people navigate their lives and the Internet more effectively.

Well, certainly one of the most compelling parts of the investment was the opportunity to work with Megan, who is an experienced executive and in many ways has led companies in similar endeavors related to Duckbill. So I'm looking forward to learning with her and from her. But you know, as we mentioned earlier, the question was posed about this is a consumer product. This is about delighting a consumer, meeting a customer's need, resonating with the consumer. I certainly hope that our years of experience in living in the heads of consumers and working with some great founders that brought products that have become you what is to life is something we can do here at duck Bill. Also, I think, as Megan articulated, like Uber Black, you know, duck Bill Black is the start, but the vision really is to reach mass audiences and help people navigate their lives and the Internet more effectively.

And Megan's love.

And Megan's love.

To mention for a moment, just this idea of like reimagining search and duck Bill really leading the way, or something like duck Bill leading the way in that like search really hasn't been reimagined for twenty years. It's been a blank page with a bar, or it's been an ad led query field. And I do think that, you know, the companies that brought us those services are incredibly well resourced, with really smart people around the table, and they're also thinking about AI making their products and services better. But their business models rely on ads and they in many ways that's not customer aligned. And I do think there's a chance here for a company for Duckbill to take on this idea of being an entry point to the Internet and contextualizing search and discovery and execution.