From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hide.

From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hide.

And Ed Lovelove, Iurmed Ludlow Here in San Francisco, Caroline hides off today. This is Bloomberg Technology coming up on the program. Robotaxis get a big win in San Francisco, Crucio Carl Vote joins me live on set as regulators votes to allow his company and Google's Weimo to truly commercialize their tech here in SF and a Bloomberg exclusive, a government probe into malicious attacks on cloud computing, including Microsoft's role in suspected Chinese hacking of government officials. We have the details, and the aviation sector is about to hand passengers a five trillion dollar bill to fight its next big threat, decarbonization. We have the Bloomberg Big Big take all right, straight to our top story.

And Ed Lovelove, Iurmed Ludlow Here in San Francisco, Caroline hides off today. This is Bloomberg Technology coming up on the program. Robotaxis get a big win in San Francisco, Crucio Carl Vote joins me live on set as regulators votes to allow his company and Google's Weimo to truly commercialize their tech here in SF and a Bloomberg exclusive, a government probe into malicious attacks on cloud computing, including Microsoft's role in suspected Chinese hacking of government officials. We have the details, and the aviation sector is about to hand passengers a five trillion dollar bill to fight its next big threat, decarbonization. We have the Bloomberg Big Big take all right, straight to our top story.

San Franciscan's get ready because you're.

San Franciscan's get ready because you're.

About to see even more robotaxis on the streets. California regulators just voted in favor of Waymo and Cruz expanding their paid driverless services in the city.

About to see even more robotaxis on the streets. California regulators just voted in favor of Waymo and Cruz expanding their paid driverless services in the city.

It's a major.

It's a major.

Milestone towards commercializing the technology. The ruling came after hours of public testimony with citizens arguing for and against the expansion of the Robotaxi company's services.

Milestone towards commercializing the technology. The ruling came after hours of public testimony with citizens arguing for and against the expansion of the Robotaxi company's services.

The two companies can.

The two companies can.

Now run full truly driverless commercial services, charging faares day and night here in San Francisco.

Now run full truly driverless commercial services, charging faares day and night here in San Francisco.

The CEO of Cruz, Kyle Vote, joins me.

The CEO of Cruz, Kyle Vote, joins me.

Now, Kyle, welcome to Bloomberg Technology. Thanks d How do you operationalize this? Let's get right to it. It's gone in your favor. What happens next?

Now, Kyle, welcome to Bloomberg Technology. Thanks d How do you operationalize this? Let's get right to it. It's gone in your favor. What happens next?

What do you do well?

What do you do well?

So it's a big year of scaling for us.

So it's a big year of scaling for us.

So over the past several months we've ramped up our operations in a very measured and careful way as we see the performance of these abs improve on the road. And so the big difference with yesterday's permit, which is the sixth one we've got in California, the final one needed to commercialize our services. We can convert that service from a pre service to a fared service. And so it's a big milestone for not just us, but the av industry, and I think a signal for you know, California that we are going to prioritize progress versus accepting the tragedy of the status quo on our roads today?

So over the past several months we've ramped up our operations in a very measured and careful way as we see the performance of these abs improve on the road. And so the big difference with yesterday's permit, which is the sixth one we've got in California, the final one needed to commercialize our services. We can convert that service from a pre service to a fared service. And so it's a big milestone for not just us, but the av industry, and I think a signal for you know, California that we are going to prioritize progress versus accepting the tragedy of the status quo on our roads today?

How strong is the signal? I tweeted or xed that you're coming on the program. And actually, a really fair question I got in response was why did the CPUC just do San Francisco. Why not say to cruise or weai moo have at it in Los Angeles, Sacramento, any other city in the state.

How strong is the signal? I tweeted or xed that you're coming on the program. And actually, a really fair question I got in response was why did the CPUC just do San Francisco. Why not say to cruise or weai moo have at it in Los Angeles, Sacramento, any other city in the state.

That was actually at our direction.

That was actually at our direction.

What we've been working with regulators, you know, like I said, for years now, and the very first time we went to the CPUC for FARED service, it was for a small region of San Francisco, a limited number of cars, so we could you know, work with regulators and show them that this technology was ready. And so this is actually the second time we've gone for a farired permit, and this is an expansion of that original permit, and we'll do the same later this year or perhaps next year when we expand into California and other cities in the states.

What we've been working with regulators, you know, like I said, for years now, and the very first time we went to the CPUC for FARED service, it was for a small region of San Francisco, a limited number of cars, so we could you know, work with regulators and show them that this technology was ready. And so this is actually the second time we've gone for a farired permit, and this is an expansion of that original permit, and we'll do the same later this year or perhaps next year when we expand into California and other cities in the states.

So why is San Francisco, Why is this the place to not just test the technology but commercialize the business.

So why is San Francisco, Why is this the place to not just test the technology but commercialize the business.

Well, you know, candidate, like, we're based here in San Francisco, so this is our home territory. But we see San Francisco as a litmus test for the commercialization of robosaxies. If they work in a city like San Francisco, where we have high population density, you know, steep hills, heavy fog, a lot of a lot of tricky construction and other things, then that means it can work in many other cities across similar cities across the US. And of course, you know, from a business standpoint, these are the early days of the technology.

Well, you know, candidate, like, we're based here in San Francisco, so this is our home territory. But we see San Francisco as a litmus test for the commercialization of robosaxies. If they work in a city like San Francisco, where we have high population density, you know, steep hills, heavy fog, a lot of a lot of tricky construction and other things, then that means it can work in many other cities across similar cities across the US. And of course, you know, from a business standpoint, these are the early days of the technology.

These vehicles.

These vehicles.

The first version is always more expensive than later ones, and we want to start in cities where there's a high willingness to pay. So we'll see us start in some of the major cities before we work out into into some of the other cities.

The first version is always more expensive than later ones, and we want to start in cities where there's a high willingness to pay. So we'll see us start in some of the major cities before we work out into into some of the other cities.

What about money in your pocket now?

What about money in your pocket now?

You know, I know the weight list is in the tens of thousands, so you are able to charge a fair you on board the weight list? Does that bring in sort of meaningful revenue for you guys, Because I'm going to get into the history of your company a second, but I am interested in how quick the impact of being able to charge a fair is.

You know, I know the weight list is in the tens of thousands, so you are able to charge a fair you on board the weight list? Does that bring in sort of meaningful revenue for you guys, Because I'm going to get into the history of your company a second, but I am interested in how quick the impact of being able to charge a fair is.

Well.

Well.

You know, you know today we're still operating in relatively small scale. You know, it's gonna we have on the awer of hundreds of vehicles, but up from you know, fifty or so a year ago, and you're gonna see that move into the thousands, you know, not not right away, but over time, you know, across several cities that we're operating in. But you know, the rate of expansion has been pretty impressive. And this is not because we're going you know, just going wild here. It's actually because the av system itself is improving so quickly. That's one of the most the remarkable things about AVIS compared to human drivers is they can keep getting better over time and even exponentially. And so even just a couple of weeks ago on the and Earning scoll I said, we were at about ten thousand rides per week. This last week it was fifteen thousand. So we're seeing demand that's off the charts, and I think that's going to lead to you know, continued expansion in the near term.

You know, you know today we're still operating in relatively small scale. You know, it's gonna we have on the awer of hundreds of vehicles, but up from you know, fifty or so a year ago, and you're gonna see that move into the thousands, you know, not not right away, but over time, you know, across several cities that we're operating in. But you know, the rate of expansion has been pretty impressive. And this is not because we're going you know, just going wild here. It's actually because the av system itself is improving so quickly. That's one of the most the remarkable things about AVIS compared to human drivers is they can keep getting better over time and even exponentially. And so even just a couple of weeks ago on the and Earning scoll I said, we were at about ten thousand rides per week. This last week it was fifteen thousand. So we're seeing demand that's off the charts, and I think that's going to lead to you know, continued expansion in the near term.

You know, I talked about the history last night on Bloombog Television. We aired an episode of the Circuit with Emily Chang and she's sawing a Gary Tan about why Combinator. You guys were why Combinator Class of Winter twenty fourteen.

You know, I talked about the history last night on Bloombog Television. We aired an episode of the Circuit with Emily Chang and she's sawing a Gary Tan about why Combinator. You guys were why Combinator Class of Winter twenty fourteen.

I think that's right.

I think that's right.

Nine years it's taking you to get to this point.

Nine years it's taking you to get to this point.

Is that fast progress or is that frustratingly slow progress.

Is that fast progress or is that frustratingly slow progress.

Well, you know, building a car that can operate, you know, better in many ways than a human driver is one of the ultimate AI challenges and there's no shortcuts. And so, you know, the first eight years of this tenure journey was a grind. It's continuous improvement, improving the software to the point we saw compelling evidence that this is going to have a positive impact on road safety.

Well, you know, building a car that can operate, you know, better in many ways than a human driver is one of the ultimate AI challenges and there's no shortcuts. And so, you know, the first eight years of this tenure journey was a grind. It's continuous improvement, improving the software to the point we saw compelling evidence that this is going to have a positive impact on road safety.

And so, unlike you know, other.

And so, unlike you know, other.

AI products, where you can launch a product out there in the public as soon as it's kind of working, in our case, that technology really had to be matured and mid robust before we put it out there on the roads.

AI products, where you can launch a product out there in the public as soon as it's kind of working, in our case, that technology really had to be matured and mid robust before we put it out there on the roads.

And so it has been a ten year journey.

And so it has been a ten year journey.

But we're really happy now that we're finally able to put this out there and people are able to use it and we're going to see you know, benefits and road safety as a result.

But we're really happy now that we're finally able to put this out there and people are able to use it and we're going to see you know, benefits and road safety as a result.

Okay, so we're going to look at some pictures of what are retrofitted customized Chevy Bolts driving around San Francisco. It's also the case in other states like Arizona, Texas. Right, A question I constantly get is why no New York City, but also no China because there are Chinese players the test in the Bay Area and in Chinese cities.

Okay, so we're going to look at some pictures of what are retrofitted customized Chevy Bolts driving around San Francisco. It's also the case in other states like Arizona, Texas. Right, A question I constantly get is why no New York City, but also no China because there are Chinese players the test in the Bay Area and in Chinese cities.

Could you answer those two please?

Could you answer those two please?

For New York in other cities, it's not a question of if, but when. And you know this, this technology, the way we've deployed is we make it work in a defined environment and so in San Francisco you've got fog and seapills, but you don't have you know, ice or snow, and so that'll come and then the next couple of years, and once we add that capability, we'll be able to expand into some of the colder weather cities. But that's not slowing our expansion today. I mean a year ago we were at in one city, just operating in San Francisco. As of today, we've announced seven or eight eight cities that will be in eminently and so you're going to see that rapid expansion, probably in the Sun Belt, in the areas where the capabilities are a match to what we see in those cities.

For New York in other cities, it's not a question of if, but when. And you know this, this technology, the way we've deployed is we make it work in a defined environment and so in San Francisco you've got fog and seapills, but you don't have you know, ice or snow, and so that'll come and then the next couple of years, and once we add that capability, we'll be able to expand into some of the colder weather cities. But that's not slowing our expansion today. I mean a year ago we were at in one city, just operating in San Francisco. As of today, we've announced seven or eight eight cities that will be in eminently and so you're going to see that rapid expansion, probably in the Sun Belt, in the areas where the capabilities are a match to what we see in those cities.

Let's talk about the future from the technology perspective and origin. So right now, these are retrofitted or customized Chevy Bolts. But you are designing and we're showing it right now. A purpose built steering wheel lists seats inward facing shuttle. Okay, where are we with that product?

Let's talk about the future from the technology perspective and origin. So right now, these are retrofitted or customized Chevy Bolts. But you are designing and we're showing it right now. A purpose built steering wheel lists seats inward facing shuttle. Okay, where are we with that product?

Engineering is complete, you know, we're on the verge of going into production. We expect some announcements on that in the next few weeks. But the exciting thing about this vehicle is it's the first time a car has been built from the ground up for this robotaxi purpose. So it lasts a lot longer than a regular car. It's designed to be optimal for pool rides, so multiple people sharing a vehicle because there's lots of space between them, and the cost of it will be substantially lower than the first generation of the technology. So I think the cars on the road today feel like a car where you've just removed the driver, you still see the steering wheel moving around. The Origin feels like what a what a driverless vehicle was meant to be, and that experience that I think we've all perhaps been fantasizing about for years.

Engineering is complete, you know, we're on the verge of going into production. We expect some announcements on that in the next few weeks. But the exciting thing about this vehicle is it's the first time a car has been built from the ground up for this robotaxi purpose. So it lasts a lot longer than a regular car. It's designed to be optimal for pool rides, so multiple people sharing a vehicle because there's lots of space between them, and the cost of it will be substantially lower than the first generation of the technology. So I think the cars on the road today feel like a car where you've just removed the driver, you still see the steering wheel moving around. The Origin feels like what a what a driverless vehicle was meant to be, and that experience that I think we've all perhaps been fantasizing about for years.

Can you just explain in simple terms how when production starts you will deploy to the real world the Origin against your existing infrastructure.

Can you just explain in simple terms how when production starts you will deploy to the real world the Origin against your existing infrastructure.

Yeah, so we've already been testing the Origin and again, this car has no steering wheel, so without you know, any safety driver or anyone behind the wheel in multiple cities. And as it goes into production, you'll see us start deploying those vehicles, you know, again in a gradual and measured way across the existing you know, seven or eight cities that we've announced, and then ramp up, you know, the number of those vehicles each cities as we ramp our production.

Yeah, so we've already been testing the Origin and again, this car has no steering wheel, so without you know, any safety driver or anyone behind the wheel in multiple cities. And as it goes into production, you'll see us start deploying those vehicles, you know, again in a gradual and measured way across the existing you know, seven or eight cities that we've announced, and then ramp up, you know, the number of those vehicles each cities as we ramp our production.

There is a fierce, fierce battle for talent right now, broadly in the theater of artificial intelligence, but you know, machine learning or neural networks is a big part of what you guys do as well. What are your biggest challenges right now from a cash perspective, from a talent perspective that you've got left to tackle in twenty twenty three.

There is a fierce, fierce battle for talent right now, broadly in the theater of artificial intelligence, but you know, machine learning or neural networks is a big part of what you guys do as well. What are your biggest challenges right now from a cash perspective, from a talent perspective that you've got left to tackle in twenty twenty three.

Well, we're very fortunate to have, you know, robust support from General Motors that you know, Mary and her team see this is you know, a key part of GM's future. And so when we talk to candidates, we talk to AI talent, they'd like to see that strong backing. But also for many people there are a lot of AI opportunities out there that are fun or interesting problems, but many of them still feel like toys. When you work on a self driving car that is having a real impact affecting road safety today, and it's one of the best ways.

Well, we're very fortunate to have, you know, robust support from General Motors that you know, Mary and her team see this is you know, a key part of GM's future. And so when we talk to candidates, we talk to AI talent, they'd like to see that strong backing. But also for many people there are a lot of AI opportunities out there that are fun or interesting problems, but many of them still feel like toys. When you work on a self driving car that is having a real impact affecting road safety today, and it's one of the best ways.

That an AI engineer can spend their time in my opinion.

That an AI engineer can spend their time in my opinion.

All Right, Kyle Vote, CEO of Cruise, a pretty big moment for robotaxi or driver list technology. Here in SF, a US Cybersecurity Advisory Panel will investigate malicious targeting of cloud computing environments, including Microsoft's role in a recent breach of government officials email accounts by suspected Chinese hackers that according to the Department of Homeland Security. It also confirms a report from Bloomberg News. Let's bring in our cybersecurity editor who's been on this story, Andrew Martin. Andrew helped me understand the basics here what is being looked at.

All Right, Kyle Vote, CEO of Cruise, a pretty big moment for robotaxi or driver list technology. Here in SF, a US Cybersecurity Advisory Panel will investigate malicious targeting of cloud computing environments, including Microsoft's role in a recent breach of government officials email accounts by suspected Chinese hackers that according to the Department of Homeland Security. It also confirms a report from Bloomberg News. Let's bring in our cybersecurity editor who's been on this story, Andrew Martin. Andrew helped me understand the basics here what is being looked at.

So the Biden administration created this cyber safety review panel to look at major cybersecurity events after the fact to try to figure out ways to prevent it from happening in the future. And what they did here is following a hack that was revealed in July that included a bunch of US government email accounts, including Comerace Secretary Gina Romando. They decided to look broadly at malicious attacks on cloud security environment and also at a specific hack by suspected Chinese hackers that got access to these email accounts.

So the Biden administration created this cyber safety review panel to look at major cybersecurity events after the fact to try to figure out ways to prevent it from happening in the future. And what they did here is following a hack that was revealed in July that included a bunch of US government email accounts, including Comerace Secretary Gina Romando. They decided to look broadly at malicious attacks on cloud security environment and also at a specific hack by suspected Chinese hackers that got access to these email accounts.

Okay, let's go to Microsoft in their role in this story. What have we learned about? What investigators are looking at Microsoft's role in all this?

Okay, let's go to Microsoft in their role in this story. What have we learned about? What investigators are looking at Microsoft's role in all this?

So what happened in this latest hack is that.

So what happened in this latest hack is that.

Is that these suspected Chinese hackers got what's known as sort of an encryption key that allowed them to generate authentication tokens, which basically allow allow them to.

Is that these suspected Chinese hackers got what's known as sort of an encryption key that allowed them to generate authentication tokens, which basically allow allow them to.

Act as legitimate users.

Act as legitimate users.

In these systems and get access to email accounts. And Senator Ron Wyden has wrote a letter last month asking for US officials to investigate Microsoft's.

In these systems and get access to email accounts. And Senator Ron Wyden has wrote a letter last month asking for US officials to investigate Microsoft's.

Role in this.

Role in this.

He accused them of negligent cybersecurity predices.

He accused them of negligent cybersecurity predices.

He also noted that Microsoft's products were.

He also noted that Microsoft's products were.

Involved in the solar wind tech from a couple of years ago. So he has broadly for an investigation of Microsoft.

Involved in the solar wind tech from a couple of years ago. So he has broadly for an investigation of Microsoft.

This is this Cyber Safety.

This is this Cyber Safety.

Review Panel is looking more broadly at not just Microsoft, but all cloud providers.

Review Panel is looking more broadly at not just Microsoft, but all cloud providers.

I think it's important that we kind of think about what the agencies are saying. We have a statement from the Secretary for Homeland Security, Alejandro Mayorcus who says organizations of all kinds are increasingly reliant on cloud computing to deliver services to the American people, which makes it imperative that we understand the vulnerabilities of that technology. Do we have a sense that they understand the vulnerabilities now, Andrew, No, I think that's.

I think it's important that we kind of think about what the agencies are saying. We have a statement from the Secretary for Homeland Security, Alejandro Mayorcus who says organizations of all kinds are increasingly reliant on cloud computing to deliver services to the American people, which makes it imperative that we understand the vulnerabilities of that technology. Do we have a sense that they understand the vulnerabilities now, Andrew, No, I think that's.

We're gonna They're going to try to figure out. You know, cloud obviously has grown very rapidly in the last couple of years. There has been a couple major attacks that have exploited vulnerabilities in the cloud. So I think it makes sense a sort of step back and try to figure this out.

We're gonna They're going to try to figure out. You know, cloud obviously has grown very rapidly in the last couple of years. There has been a couple major attacks that have exploited vulnerabilities in the cloud. So I think it makes sense a sort of step back and try to figure this out.

The thing that is interesting here is who in DC looks at this stuff at any given moment. You know, when you think about the departments investigating and probing, it's a digital issue rather than I guess the national security issue. Can you can you explain to us who has jurisdiction here?

The thing that is interesting here is who in DC looks at this stuff at any given moment. You know, when you think about the departments investigating and probing, it's a digital issue rather than I guess the national security issue. Can you can you explain to us who has jurisdiction here?

Yes?

Yes?

So, yes.

So, yes.

So there's an agency called the cyber Security and Infrastructure Security Agency, which oversees sort of the defense of US computer networks, so they provide a sort of protection against the tax and intelligence to help for people who work in those agencies.

So there's an agency called the cyber Security and Infrastructure Security Agency, which oversees sort of the defense of US computer networks, so they provide a sort of protection against the tax and intelligence to help for people who work in those agencies.

Protect against the tax. The Cyber Safety.

Protect against the tax. The Cyber Safety.

Review Board is overseen by them their advisory in nature, and again the purpose of them is not some much to remend at tax, but to sort of after the fact go back and say, Okay, here's what went wrong.

Review Board is overseen by them their advisory in nature, and again the purpose of them is not some much to remend at tax, but to sort of after the fact go back and say, Okay, here's what went wrong.

In this case, what can we do better in the next time.

In this case, what can we do better in the next time.

They've previously looked at log forge, which was the software vulnerability that.

They've previously looked at log forge, which was the software vulnerability that.

In open source software.

In open source software.

And they also looked at this hacking group called lapses, which it hacked a bunch of technology companies that come up with reports sort of recommending ways to prevent against the tax.

And they also looked at this hacking group called lapses, which it hacked a bunch of technology companies that come up with reports sort of recommending ways to prevent against the tax.

Against that nature, all right, thanks to Bloomberg Cybersecurity editor Andrew Martin, and again that story confirming a previous Bloomberg report. Now coming up here on Bloomberg Technology, the cost.

Against that nature, all right, thanks to Bloomberg Cybersecurity editor Andrew Martin, and again that story confirming a previous Bloomberg report. Now coming up here on Bloomberg Technology, the cost.

Of flying green.

Of flying green.

Why some airlines are planning to charge passengers for more for flights in order to reduce their carbon emissions. It is a big number big. We'll have the details next. This is Bloomberg Technology.

Why some airlines are planning to charge passengers for more for flights in order to reduce their carbon emissions. It is a big number big. We'll have the details next. This is Bloomberg Technology.

The designated members of each House of Congress of the appointment in February twenty eighteen, after being nominated by the former president and confirmed by the Senate, mister Weiss was sworn in as the United States Attorney for the District of Delaware. Mister Weiss had been a career prosecutor, having served previously in the office for more than a decade. Beginning in twenty nineteen, mister Weiss, in his capacity as US Attorney and along with federal law enforcement partners, began investigating allegations of certain criminal conduct by, among others, Robert Hunter Biden. That investigation has been recently referenced in federal criminal proceedings in the District of Delaware, and as noted in those proceedings and other public statements by mister Weiss's office, that investigation remains ongoing. In February twenty twenty one, US Attorney Weiss was asked to remain as US Attorney for the District of Delaware and in that capacity to continue to lead the investigation. As I said before, mister Weiss would be permitted to continue his investigation, take any investigative steps he wanted, and make the decision whether to prosecute in any district. Mister Weiss has told Congress that he has been granted ultimate authority over this matter, including the responsibility for deciding where, when, and whether to file charges, and for making decisions necessary to preserve the integrity of any prosecution consistent with federal law, the principles of federal prosecution, and departmental policies. In a July twenty twenty three letter to Congress, mister Weiss said that he had not to that point requested special Council designation. On Tuesday of this week, mister Weiss advised me that, in his judgment, his investigation had stage at which he should continue his work as a Special Council, and he asked to be so appointed. Upon considering his request, as well as the extraordinary circumstances relating to this matter, I have concluded that it is in the public interest to appoint him as Special Council commitment to provide mister Weiss all the resources he requests. It also reaffirms that mister Weiss has the authority he needs to conduct a thorough investigation and to continue to take the steps he deems appropriate independently based only on the facts and the law. Mister Weiss will also continue to serve as US Attorney for the District of Delaware a Special Council, he will continue to have the authority and responsibility that he has previously exercised to oversee the investigation and decide where, when, and whether to file charges. The Special Council will not be subject to the day to day supervision of any official of the Department, but he must comply with the regulations, procedures, and policies of the Department consistent with the Special Council regulations. At the conclusion of mister Weiss's work, he will provide me with a report explaining the prosecution or declination decisions reached by him. As with each Special Council who has served since I have taken office, I am committed to making as much of his report public as possible, consistent with legal requirements and Department policy. Today's announcement affords the prosecutors, agents, and analysts working on this matter the ability to proceed with their work expeditiously and to make decisions indisputably guided only by the facts and the law. The men and women undertaking this investigation are public servants who have dedicated their careers to protecting the citizens of this country. The appointment of mister Weiss reinforces for the American people. The Department's committed meant to both independence and accountability in particularly sensitive matters. I am confident that mister Weiss will carry out his responsibility in an even handed and urgent manner and in accordance with the highest traditions of this department. Thank you.

The designated members of each House of Congress of the appointment in February twenty eighteen, after being nominated by the former president and confirmed by the Senate, mister Weiss was sworn in as the United States Attorney for the District of Delaware. Mister Weiss had been a career prosecutor, having served previously in the office for more than a decade. Beginning in twenty nineteen, mister Weiss, in his capacity as US Attorney and along with federal law enforcement partners, began investigating allegations of certain criminal conduct by, among others, Robert Hunter Biden. That investigation has been recently referenced in federal criminal proceedings in the District of Delaware, and as noted in those proceedings and other public statements by mister Weiss's office, that investigation remains ongoing. In February twenty twenty one, US Attorney Weiss was asked to remain as US Attorney for the District of Delaware and in that capacity to continue to lead the investigation. As I said before, mister Weiss would be permitted to continue his investigation, take any investigative steps he wanted, and make the decision whether to prosecute in any district. Mister Weiss has told Congress that he has been granted ultimate authority over this matter, including the responsibility for deciding where, when, and whether to file charges, and for making decisions necessary to preserve the integrity of any prosecution consistent with federal law, the principles of federal prosecution, and departmental policies. In a July twenty twenty three letter to Congress, mister Weiss said that he had not to that point requested special Council designation. On Tuesday of this week, mister Weiss advised me that, in his judgment, his investigation had stage at which he should continue his work as a Special Council, and he asked to be so appointed. Upon considering his request, as well as the extraordinary circumstances relating to this matter, I have concluded that it is in the public interest to appoint him as Special Council commitment to provide mister Weiss all the resources he requests. It also reaffirms that mister Weiss has the authority he needs to conduct a thorough investigation and to continue to take the steps he deems appropriate independently based only on the facts and the law. Mister Weiss will also continue to serve as US Attorney for the District of Delaware a Special Council, he will continue to have the authority and responsibility that he has previously exercised to oversee the investigation and decide where, when, and whether to file charges. The Special Council will not be subject to the day to day supervision of any official of the Department, but he must comply with the regulations, procedures, and policies of the Department consistent with the Special Council regulations. At the conclusion of mister Weiss's work, he will provide me with a report explaining the prosecution or declination decisions reached by him. As with each Special Council who has served since I have taken office, I am committed to making as much of his report public as possible, consistent with legal requirements and Department policy. Today's announcement affords the prosecutors, agents, and analysts working on this matter the ability to proceed with their work expeditiously and to make decisions indisputably guided only by the facts and the law. The men and women undertaking this investigation are public servants who have dedicated their careers to protecting the citizens of this country. The appointment of mister Weiss reinforces for the American people. The Department's committed meant to both independence and accountability in particularly sensitive matters. I am confident that mister Weiss will carry out his responsibility in an even handed and urgent manner and in accordance with the highest traditions of this department. Thank you.

If you was the joernal of Weiss, had the authorities needed.

If you was the joernal of Weiss, had the authorities needed.

You need to be a polution.

You need to be a polution.

That was US Attorney General Garland speaking there the news the Hunter Biden probe has been assigned a special council by the Department of Justice. That special council the current head of the probe David Weiss, who will be the special council on the Hunter Biden probe. Let's head over to Washington. Webloon both Katie Lions has more Kayley.

That was US Attorney General Garland speaking there the news the Hunter Biden probe has been assigned a special council by the Department of Justice. That special council the current head of the probe David Weiss, who will be the special council on the Hunter Biden probe. Let's head over to Washington. Webloon both Katie Lions has more Kayley.

Well and as we just heard from the Attorney General, David Weiss, the US District Attorney in Delaware since twenty nine ten, has already been looking into criminal investigations against Hunter Biden. Of course, President Joe Biden's son. He has now been granted Special Council authority and under which, according to Merrick Garland, the Attorney General. He will have full independence, he will not be overseen on a day to day basis by the Department of Justice as he continues this investigation. It's important to note here earlier this summer, mister Weiss, the district attorney there, was involved in that initial plea agreement with Hunter Biden, where he was supposed to plead guilty to two misdemeanor tax charges and in return could have avoided prosecution on a separate gun related charge. That plea deal had fallen apart in court. That is not a completely resolved matter, and now going forward, mister Weiss will have this special Council designated authority in the probe of the President's son. It's important to keep in mind here as well that a special counsel being appointed is something that Republicans have been calling for for some time now, and of course in Congress there are other separate, ongoing investigations into the dealings, not just of Hunter Biden, but how the President himself may have been involved. There was a hearing just recently with Debon Archer, hunter Biden's former business partner, before the House Oversight Committee, talking about phone calls that the President may have been on with Hunter simultaneously with business associates. So Congress is doing work here and now again a special counsel, Mister Weiss, the District attorney in Delaware, has also been given that special council designation.

Well and as we just heard from the Attorney General, David Weiss, the US District Attorney in Delaware since twenty nine ten, has already been looking into criminal investigations against Hunter Biden. Of course, President Joe Biden's son. He has now been granted Special Council authority and under which, according to Merrick Garland, the Attorney General. He will have full independence, he will not be overseen on a day to day basis by the Department of Justice as he continues this investigation. It's important to note here earlier this summer, mister Weiss, the district attorney there, was involved in that initial plea agreement with Hunter Biden, where he was supposed to plead guilty to two misdemeanor tax charges and in return could have avoided prosecution on a separate gun related charge. That plea deal had fallen apart in court. That is not a completely resolved matter, and now going forward, mister Weiss will have this special Council designated authority in the probe of the President's son. It's important to keep in mind here as well that a special counsel being appointed is something that Republicans have been calling for for some time now, and of course in Congress there are other separate, ongoing investigations into the dealings, not just of Hunter Biden, but how the President himself may have been involved. There was a hearing just recently with Debon Archer, hunter Biden's former business partner, before the House Oversight Committee, talking about phone calls that the President may have been on with Hunter simultaneously with business associates. So Congress is doing work here and now again a special counsel, Mister Weiss, the District attorney in Delaware, has also been given that special council designation.

All right, Bloombers k Lines in DC, thank you the news that David Weiss, the current head of the Hunter Biden probe, has been assigned as the special council by the Department of Justice.

All right, Bloombers k Lines in DC, thank you the news that David Weiss, the current head of the Hunter Biden probe, has been assigned as the special council by the Department of Justice.

Welcome back to Bloomber Technology.

Welcome back to Bloomber Technology.

Ed Ludlow here in San Francisco, remainder Caroline Hyde is off.

Ed Ludlow here in San Francisco, remainder Caroline Hyde is off.

I want to get a quick check on the markets.

I want to get a quick check on the markets.

And kind of how we ended the week and as that one hundred over five days down again one point seven percent as it stands, second consecutive weekly decline and it's easy to forget, but this is the first back to back weekly declines we've had on the Tech Heavy index since December when we had four straight weeks of declines. Earning season has been a really big part of the story. But remember the USCPI print as well being a factor markets trying to understand what the Fed might do next. Remember higher rates impact the present value of future cash flows.

And kind of how we ended the week and as that one hundred over five days down again one point seven percent as it stands, second consecutive weekly decline and it's easy to forget, but this is the first back to back weekly declines we've had on the Tech Heavy index since December when we had four straight weeks of declines. Earning season has been a really big part of the story. But remember the USCPI print as well being a factor markets trying to understand what the Fed might do next. Remember higher rates impact the present value of future cash flows.

There's a lot.

There's a lot.

Going on, But it is interesting to note back to back weekly declines on the Nazak one hundred. We always go to that index because it's so tech heavy from the megacap perspective, which is a drag in Friday session right through to higher multiple software names. One name we're looking at in particular Alphabet, parent of Google. It's lower during Friday session, but on a weekly basis has actually fared a little bit better. What I want to talk about next is Alphabet's big old pile of cash. The Google parent generated nearly twenty nine billion dollars in cash in the second quarter after cutting thousands of jobs and its efforts to staunch losses in its various moonshot projects. But the Google parent now has about one hundred and eighteen billion dollars in cash and short term market world securities, more than any other company on the Nazak one hundred.

Going on, But it is interesting to note back to back weekly declines on the Nazak one hundred. We always go to that index because it's so tech heavy from the megacap perspective, which is a drag in Friday session right through to higher multiple software names. One name we're looking at in particular Alphabet, parent of Google. It's lower during Friday session, but on a weekly basis has actually fared a little bit better. What I want to talk about next is Alphabet's big old pile of cash. The Google parent generated nearly twenty nine billion dollars in cash in the second quarter after cutting thousands of jobs and its efforts to staunch losses in its various moonshot projects. But the Google parent now has about one hundred and eighteen billion dollars in cash and short term market world securities, more than any other company on the Nazak one hundred.

Apart from Apple.

Apart from Apple.

But unlike Apple, which aims to give back most of its cash to shareholders, Alphabet does not have a well defined capital return strategy. So investors really right now seeking more details on its plans, and we'll ask we'll try to get those answers for you now from.

But unlike Apple, which aims to give back most of its cash to shareholders, Alphabet does not have a well defined capital return strategy. So investors really right now seeking more details on its plans, and we'll ask we'll try to get those answers for you now from.

Big tech to little tech.

Big tech to little tech.

We know Google's going big on AI, as is Microsoft are the big names, but it isn't just about the megacaps or the giants. Take mid Journey as an example. It's an independent research lab that's been experimenting with AI and can generate images using AI. It's the subject of today's Bloomberg Tech Daily newsletter, and its author, Bloomberg's Davily Album joins me. Now this is interesting, Like you and I interact with so many of the AI companies that are developing a generative AI tool. We interact with their apps, their technology. Why you've been writing about about this particular name in the newsletter.

We know Google's going big on AI, as is Microsoft are the big names, but it isn't just about the megacaps or the giants. Take mid Journey as an example. It's an independent research lab that's been experimenting with AI and can generate images using AI. It's the subject of today's Bloomberg Tech Daily newsletter, and its author, Bloomberg's Davily Album joins me. Now this is interesting, Like you and I interact with so many of the AI companies that are developing a generative AI tool. We interact with their apps, their technology. Why you've been writing about about this particular name in the newsletter.

Yeah, hey, Ed, it's good to be here. You know, I think that mid Journey, which you know has been floating around the name if you recall that viral image of the Pope and a puffer jacket that was actually created by mid Journey. It's one of the biggest AI image generating apps and is only.

Yeah, hey, Ed, it's good to be here. You know, I think that mid Journey, which you know has been floating around the name if you recall that viral image of the Pope and a puffer jacket that was actually created by mid Journey. It's one of the biggest AI image generating apps and is only.

Sort of.

Sort of.

If you think about the three biggest ones, it would be mid Journey, Open AIS, Dolly, and Stability AIS Stable Diffusion. So this is, you know, one of the most popular and actually according to this research, is currently the most popular image generating app that out there, and it's concerning that it can be easily tricked.

If you think about the three biggest ones, it would be mid Journey, Open AIS, Dolly, and Stability AIS Stable Diffusion. So this is, you know, one of the most popular and actually according to this research, is currently the most popular image generating app that out there, and it's concerning that it can be easily tricked.

Okay, so the most popular names mid Journey, Stable Diffusion, and of course open Aiyes, Dolli all very familiar to us here on Bloomberg Technology.

Okay, so the most popular names mid Journey, Stable Diffusion, and of course open Aiyes, Dolli all very familiar to us here on Bloomberg Technology.

There's something in.

There's something in.

Your writing that really jumps out though, that you consider mid Journey and we think about standards content moderation. Is it fair to say that mid Journey has the most flexible standards of those three?

Your writing that really jumps out though, that you consider mid Journey and we think about standards content moderation. Is it fair to say that mid Journey has the most flexible standards of those three?

At least according to this report, it seems to be the case. Researchers from the Center for Countering Digital Hate showed an early report, shared it with us exclusively, and they found one hundred examples where mid Journey's bot was easily tricked into creating conspiratorial images where they showed, you know, prompts where people were ordering up these images of politicians in comproming situations and events that never happened, and mid Journey easily delivered the images. There are some guardrails like mid Journey will not, for instance, generate an image if you have certain keywords like blood or you know, anything referring to gore or violence.

At least according to this report, it seems to be the case. Researchers from the Center for Countering Digital Hate showed an early report, shared it with us exclusively, and they found one hundred examples where mid Journey's bot was easily tricked into creating conspiratorial images where they showed, you know, prompts where people were ordering up these images of politicians in comproming situations and events that never happened, and mid Journey easily delivered the images. There are some guardrails like mid Journey will not, for instance, generate an image if you have certain keywords like blood or you know, anything referring to gore or violence.

But it's so easy to trick it.

But it's so easy to trick it.

One example that we talk about in the newsletter is you could ask it to generate an image of say, Bill and Hillary Clinton with their hands covered in strawberry syrup, so that kind of makes it look like they have.

One example that we talk about in the newsletter is you could ask it to generate an image of say, Bill and Hillary Clinton with their hands covered in strawberry syrup, so that kind of makes it look like they have.

Literal blood on their hands.

Literal blood on their hands.

And researchers are really worried about this ahead of twenty twenty four in the US presidential election.

And researchers are really worried about this ahead of twenty twenty four in the US presidential election.

So we've covered such wide ranging issues here on BTech about the text to image issue, biases, or you know, a result that is not what you intended. Let's be fair here and say what have made Journey had to say about this? What is their response to the reporting on their standards.

So we've covered such wide ranging issues here on BTech about the text to image issue, biases, or you know, a result that is not what you intended. Let's be fair here and say what have made Journey had to say about this? What is their response to the reporting on their standards.

So they didn't actually send us a response on the record, but it has said in the past that it has dozens of moderators and guides that look at the content on their discord chat app that is the main interface that mid Journey uses to interact with its users, and they say that these folks sixty eight content moderators sort of scour the chat and make sure that all the requests are above board, but it seems like they're letting some requests go straight through still and beyond that there's sort of automatic algorithmic AI that checks on the requests, usually using text matching to make.

So they didn't actually send us a response on the record, but it has said in the past that it has dozens of moderators and guides that look at the content on their discord chat app that is the main interface that mid Journey uses to interact with its users, and they say that these folks sixty eight content moderators sort of scour the chat and make sure that all the requests are above board, but it seems like they're letting some requests go straight through still and beyond that there's sort of automatic algorithmic AI that checks on the requests, usually using text matching to make.

Sure that certain terms for instance.

Sure that certain terms for instance.

Again about violence and gore aren't creating images, but again those are easily circumpanded.

Again about violence and gore aren't creating images, but again those are easily circumpanded.

Bloomberg's Davy Alba with the Bloomberg Technology Daily, I really encourage our audience go out find it on Bloomberg dot com and in the newsletter format.

Bloomberg's Davy Alba with the Bloomberg Technology Daily, I really encourage our audience go out find it on Bloomberg dot com and in the newsletter format.

Thank you so much.

Thank you so much.

Now, coming up here on the show, we'll talk about the state of AI development and adoption, but particularly in enterprise. That's with Insight Partners Managing Director Lonny Jaffie.

Now, coming up here on the show, we'll talk about the state of AI development and adoption, but particularly in enterprise. That's with Insight Partners Managing Director Lonny Jaffie.

That's next. This is Bloomberg All right.

That's next. This is Bloomberg All right.

Time for today is VC Spotlight. Let's talk about cybersecurity and AI. Insite Partners recently released it's State of the Enterprise report where they break down what the future of enterprise adoption and tailwinds in development of AI technology looks like. Managing Director Lonnie Jaffee joins us now for more here on Bloomberg Achnologies. So much of our audience either works for or is a customer of enterprise cloud Enterprise SaaS. They're thinking heavily about how the developments that are happening right now in AI impact their core business or how they use AI. Just give me sort of the key takeaways from the report that you published very.

Time for today is VC Spotlight. Let's talk about cybersecurity and AI. Insite Partners recently released it's State of the Enterprise report where they break down what the future of enterprise adoption and tailwinds in development of AI technology looks like. Managing Director Lonnie Jaffee joins us now for more here on Bloomberg Achnologies. So much of our audience either works for or is a customer of enterprise cloud Enterprise SaaS. They're thinking heavily about how the developments that are happening right now in AI impact their core business or how they use AI. Just give me sort of the key takeaways from the report that you published very.

Recently, right, so, the Inside Partner's State of Enterprise Tech Report. This is a study that reached out to about three hundred senior technologists at some of the world's largest companies, so seventy percent of them generate more than ten billion or so in annual revenue. And there's a free download from our website and has a lot of interesting data points around spending plans and strategy and areas like cybersecurity and generative AI. Cybersecurity is obviously a big focus. One newer concern we're hearing from bigger companies and governments as well is around the possibility that we'll see a wave of generative AI upgraded cyber attacks. For example, something like ransomware much smarter because it's powered by something like a large language model things. We actually launched a two weeks compression called the AI Cyber Challenge. This is led by DARPA working with companies like Anthropic and Google, Microsoft and open Ai, which will have teams competing to identify and fix software vulnerabilities using AI.

Recently, right, so, the Inside Partner's State of Enterprise Tech Report. This is a study that reached out to about three hundred senior technologists at some of the world's largest companies, so seventy percent of them generate more than ten billion or so in annual revenue. And there's a free download from our website and has a lot of interesting data points around spending plans and strategy and areas like cybersecurity and generative AI. Cybersecurity is obviously a big focus. One newer concern we're hearing from bigger companies and governments as well is around the possibility that we'll see a wave of generative AI upgraded cyber attacks. For example, something like ransomware much smarter because it's powered by something like a large language model things. We actually launched a two weeks compression called the AI Cyber Challenge. This is led by DARPA working with companies like Anthropic and Google, Microsoft and open Ai, which will have teams competing to identify and fix software vulnerabilities using AI.

Lonnie, sorry didn't mean to jump in on you there.

Lonnie, sorry didn't mean to jump in on you there.

I just want to say on this show, when we talk in the cybersecurity context, so many people saying that the tools that we all have and you guys in your industry will have the threat actors have them as well. Ultimately, you're a VC, So I'm interested why Insight actually publishes this report.

I just want to say on this show, when we talk in the cybersecurity context, so many people saying that the tools that we all have and you guys in your industry will have the threat actors have them as well. Ultimately, you're a VC, So I'm interested why Insight actually publishes this report.

What do you guys get out of it.

What do you guys get out of it.

We have a program called Insight on Site and it's generally trying to help support our portfolio companies with an enormous amount of resource. So it's one hundred and twenty full time people who help with things like product strategy and marketing and sales. And there's a part of the team Calledgnite that manages relationships with buyers at large multinational corporations and so this is a great way to stay in contact with them, and it helps our companies scale and also meet potential customers and partners and even acquirers.

We have a program called Insight on Site and it's generally trying to help support our portfolio companies with an enormous amount of resource. So it's one hundred and twenty full time people who help with things like product strategy and marketing and sales. And there's a part of the team Calledgnite that manages relationships with buyers at large multinational corporations and so this is a great way to stay in contact with them, and it helps our companies scale and also meet potential customers and partners and even acquirers.

Right.

Right.

So, this week it was announced that Checkpoint will acquire our portfolio company Perimetery v one, which allows you to build a secure virtual corporate network over the Internet for about four hundred and ninety million dollars, and Rubric this week also announced that it signed an agreement to acquire our portfolio company, Laminar, which is a leader in cybersecurity for data and use. So these are both deep tech Israeli cybersecurity startups, and you know, when the companies are relatively small and growing rapidly, that kind of connectness with buyers can be really helpful to them.

So, this week it was announced that Checkpoint will acquire our portfolio company Perimetery v one, which allows you to build a secure virtual corporate network over the Internet for about four hundred and ninety million dollars, and Rubric this week also announced that it signed an agreement to acquire our portfolio company, Laminar, which is a leader in cybersecurity for data and use. So these are both deep tech Israeli cybersecurity startups, and you know, when the companies are relatively small and growing rapidly, that kind of connectness with buyers can be really helpful to them.

Lottie, I want to jump on something you just said there about Israeli tech. I know you guys have offices in Tel Aviv. One of the big stories of the week has been VC's attitude towards the country, given the societal, judicial and political considerations happening there. How do you view Israeli tech right now? Are you pulling back or are you still interested, particularly in cybersecurity. You know, cybersecurity has been one of the main stay offerings out of Israel.

Lottie, I want to jump on something you just said there about Israeli tech. I know you guys have offices in Tel Aviv. One of the big stories of the week has been VC's attitude towards the country, given the societal, judicial and political considerations happening there. How do you view Israeli tech right now? Are you pulling back or are you still interested, particularly in cybersecurity. You know, cybersecurity has been one of the main stay offerings out of Israel.

Yeah, the cybersecurity talent there is amazing.

Yeah, the cybersecurity talent there is amazing.

You know.

You know.

You see there's a we're based in New York City and there's a pretty close connectedness between the New York City tech scene and the one in Tel Aviv. There's a lot of companies when they land in the US, and this is true for Europe as well, they'll pick New York City as their landing place. There were a few initial companies like Mango, dB and Data Dog and others that were you know, big prove that you could scale a massive infrastructure software company in Manhattan, and so that was a big early part of our interest in the country. We're now the largest investor by both deal count and dollars and technology companies there. And you know, we're actually very helpful to the Israeli companies as they start to scale up, because they need to start scaling up internationally pretty much right away, and we have a lot of expertise around global scale out, you know, hiring sales leaders, opening up your first international office, things like that.

You see there's a we're based in New York City and there's a pretty close connectedness between the New York City tech scene and the one in Tel Aviv. There's a lot of companies when they land in the US, and this is true for Europe as well, they'll pick New York City as their landing place. There were a few initial companies like Mango, dB and Data Dog and others that were you know, big prove that you could scale a massive infrastructure software company in Manhattan, and so that was a big early part of our interest in the country. We're now the largest investor by both deal count and dollars and technology companies there. And you know, we're actually very helpful to the Israeli companies as they start to scale up, because they need to start scaling up internationally pretty much right away, and we have a lot of expertise around global scale out, you know, hiring sales leaders, opening up your first international office, things like that.

Let's go back to you personally.

Let's go back to you personally.

You know, you add a decade IBM, now you're in the VC role.

You know, you add a decade IBM, now you're in the VC role.

How do you find the next IBM?

How do you find the next IBM?

You know, in this environment such a heavy focus on AI, what are you seeing out there?

You know, in this environment such a heavy focus on AI, what are you seeing out there?

Yeah, we're still only a real like about a few months into it with the generative AI capabilities, but there seem to be some early important differences starting to show up when compared to the prior generations of AI. The AI prediction systems like the recommendation engines or the computer vision classification systems in domains like healthcare, like our portfolio company Iterative Health, which can use computer vision to find cancerous polyps from a cool anascope video. These took a lot of time, effort, and resources to build. They needed big teams of very expensive engineers, complex data pipelines, lots of training and feedback data. But with the new wave of general to AI, at least so far, many companies, especially you're seeing this with incumbent software vendors and even end customers have been able to build and ship generative AI products extremely quickly. You know, some have actually released things already this year, even though it's only been a few months. And then they're able to give these language model or image generation capabilities access to their massive you know, hundreds of millions.

Yeah, we're still only a real like about a few months into it with the generative AI capabilities, but there seem to be some early important differences starting to show up when compared to the prior generations of AI. The AI prediction systems like the recommendation engines or the computer vision classification systems in domains like healthcare, like our portfolio company Iterative Health, which can use computer vision to find cancerous polyps from a cool anascope video. These took a lot of time, effort, and resources to build. They needed big teams of very expensive engineers, complex data pipelines, lots of training and feedback data. But with the new wave of general to AI, at least so far, many companies, especially you're seeing this with incumbent software vendors and even end customers have been able to build and ship generative AI products extremely quickly. You know, some have actually released things already this year, even though it's only been a few months. And then they're able to give these language model or image generation capabilities access to their massive you know, hundreds of millions.

Of existing users, existing distribution.

Of existing users, existing distribution.

And so what we've been doing is working with our portfolio companies like Atlin, for example, which is one of our better modern data stack portfolio companies that's going through really rapid growth and helping them figure out, Okay, so you can build a generative AI capability and then you can light it up to all of your users and it can use your product and in a way it's sort of a startup because it's within you know, it's a new capability and it can do something really media and substantives, like in the case of atline, it can do interactive Q and A with all of your enterprise data. You can ask it a question like you know, which of my sales reps is most productive this month, and it can go figure out across the catalog.

And so what we've been doing is working with our portfolio companies like Atlin, for example, which is one of our better modern data stack portfolio companies that's going through really rapid growth and helping them figure out, Okay, so you can build a generative AI capability and then you can light it up to all of your users and it can use your product and in a way it's sort of a startup because it's within you know, it's a new capability and it can do something really media and substantives, like in the case of atline, it can do interactive Q and A with all of your enterprise data. You can ask it a question like you know, which of my sales reps is most productive this month, and it can go figure out across the catalog.

You know how to answer that question.

You know how to answer that question.

And our companies are able to get these impressive generative AI capabilities out the door in just a few months. So it does kind of tilt the balance of power a little bit between from startups to incumbents. But there are there are a few really interesting startup categories that we've been looking at, like one, as Kevin Scott puts it, it's the companies that can make the previously impossible things possible but still hard right, so there's still defensibility and hard tech and you need really good talent. Like we have a portfolio company, Unlearned, that uses AI to create synthetic digital twins. So these are basically virtual patients created out of combining AI predictions with existing patient profiles, and it allows researchers to conduct clinical trials while needing significantly fewer real patients in the control group to get the same quality trial outcomes. So it's still really hard to do it, but it's now possible, and so there may not be an incumbent, right, and those things can lend themselves really well to startups.

And our companies are able to get these impressive generative AI capabilities out the door in just a few months. So it does kind of tilt the balance of power a little bit between from startups to incumbents. But there are there are a few really interesting startup categories that we've been looking at, like one, as Kevin Scott puts it, it's the companies that can make the previously impossible things possible but still hard right, so there's still defensibility and hard tech and you need really good talent. Like we have a portfolio company, Unlearned, that uses AI to create synthetic digital twins. So these are basically virtual patients created out of combining AI predictions with existing patient profiles, and it allows researchers to conduct clinical trials while needing significantly fewer real patients in the control group to get the same quality trial outcomes. So it's still really hard to do it, but it's now possible, and so there may not be an incumbent, right, and those things can lend themselves really well to startups.

All right, Inside Partners Managing Director Lonnie Jaffi, good to catch up here on VC Spotlight Bloomberg Technology.

All right, Inside Partners Managing Director Lonnie Jaffi, good to catch up here on VC Spotlight Bloomberg Technology.

Thank you all right, time for going viral. Have you seen this one?

Thank you all right, time for going viral. Have you seen this one?

Jeff Bezos and his new waterfront mansion in Florida. Sources save Bezos agreed to pay about sixty eight million dollars for the three bedroom a state dubbed the Billionaire Bunker of Florida. The property is located in Indian Creek, a man made barrier island, basically in the larger Miami area.

Jeff Bezos and his new waterfront mansion in Florida. Sources save Bezos agreed to pay about sixty eight million dollars for the three bedroom a state dubbed the Billionaire Bunker of Florida. The property is located in Indian Creek, a man made barrier island, basically in the larger Miami area.

I know a lot of people that have moved to Miami.

I know a lot of people that have moved to Miami.

They're not spending sixty eight million on their house hot there right now. Meanwhile, in other news, the richest person in the world, Elon Musk, says he spent three hours in an MRI machine earlier this week ahead of a proposed cage match with Metasio.

They're not spending sixty eight million on their house hot there right now. Meanwhile, in other news, the richest person in the world, Elon Musk, says he spent three hours in an MRI machine earlier this week ahead of a proposed cage match with Metasio.

Mark Zuckerberg.

Mark Zuckerberg.

He says the scan showed there's a problem with his right shoulder blade rubbing against his ribs, which requires minor surgery, and that recovery is expected to last several months. We do have no idea, frankly, whether that proposed cage match is going to go ahead. Shifting gears pardon the pun. Touro is taking on traditional car rental services like Avis, budget Perts by allowing its customers not only rent cars from others, but list their vehicles on the rental market as well. Here's tell us about what the company is up to, particularly with generative Ai. Andre Hardad Touro's CEO. It's been a while since we've caught up here on Bluebow Technology. I want to ask you first the macro story we've seen, you know, with Airbnb, certain behaviors with short term rentals, you know when it comes to houses. What do you see right now in consumer behavior with listing their vehicles on Touro. Is it because they're under pressure financially or otherwise?

He says the scan showed there's a problem with his right shoulder blade rubbing against his ribs, which requires minor surgery, and that recovery is expected to last several months. We do have no idea, frankly, whether that proposed cage match is going to go ahead. Shifting gears pardon the pun. Touro is taking on traditional car rental services like Avis, budget Perts by allowing its customers not only rent cars from others, but list their vehicles on the rental market as well. Here's tell us about what the company is up to, particularly with generative Ai. Andre Hardad Touro's CEO. It's been a while since we've caught up here on Bluebow Technology. I want to ask you first the macro story we've seen, you know, with Airbnb, certain behaviors with short term rentals, you know when it comes to houses. What do you see right now in consumer behavior with listing their vehicles on Touro. Is it because they're under pressure financially or otherwise?

Thanks for having me the latter b here.

Thanks for having me the latter b here.

The picture on the community of the tour hosts that we've got has been very, very positive over the last couple of years. As you know, prices have gone up, Car prices have gone up, interest rates have gone up, and more people are looking for ways to make their car actually make sense financially for them. So we've seen tremendous growth in our hosting community. We've seen a lot of people also start building businesses on top of our app. So we've seen those multi car hosts really take hold in the community of tour hosts, and now we're excited to be able to have both consumer hosts and multi car hosts. Entrepreneurs were building small fleets on top of our app.

The picture on the community of the tour hosts that we've got has been very, very positive over the last couple of years. As you know, prices have gone up, Car prices have gone up, interest rates have gone up, and more people are looking for ways to make their car actually make sense financially for them. So we've seen tremendous growth in our hosting community. We've seen a lot of people also start building businesses on top of our app. So we've seen those multi car hosts really take hold in the community of tour hosts, and now we're excited to be able to have both consumer hosts and multi car hosts. Entrepreneurs were building small fleets on top of our app.

The story of the year has been artficial intelligence, either generative AI tools or using a large language model to underpin your existing technology.

The story of the year has been artficial intelligence, either generative AI tools or using a large language model to underpin your existing technology.

What's Touro up to in the field of.

What's Touro up to in the field of.

AI, Well, we've jumped into it. As you may have seen, we launched our plugin for CHATGP. We're excited about the initial traction that we're seeing. We think that can really transform the way people discover.

AI, Well, we've jumped into it. As you may have seen, we launched our plugin for CHATGP. We're excited about the initial traction that we're seeing. We think that can really transform the way people discover.

How does it work in basic tech?

How does it work in basic tech?

So you add the plug in to chat GPT, you download it to you add it to your chat gypt app, and you have the Tura plug in on it, and then you can start navigating Touro in really fun ways. You can actually ask to get really wonderful cars in a particular location, and you can describe the kinds of cars that you'd like, kind of budget that you have, the sort of specs that you'd like, and then chat gpt will provide you with an incredible selection from Tero.

So you add the plug in to chat GPT, you download it to you add it to your chat gypt app, and you have the Tura plug in on it, and then you can start navigating Touro in really fun ways. You can actually ask to get really wonderful cars in a particular location, and you can describe the kinds of cars that you'd like, kind of budget that you have, the sort of specs that you'd like, and then chat gpt will provide you with an incredible selection from Tero.

So at its core, it's basically automation search, but at a next level.

So at its core, it's basically automation search, but at a next level.

Yeah, instead of having the customer go in to search and enter a lot of different criteria and filter through makes and models and prices and all the kinds of specs you can imagine when you're trying to find the perfect car for your trip, you can just ask chat gpt to do that for you and we can deliver great selection thanks to the com the nation of our plugin with CHADGPT.

Yeah, instead of having the customer go in to search and enter a lot of different criteria and filter through makes and models and prices and all the kinds of specs you can imagine when you're trying to find the perfect car for your trip, you can just ask chat gpt to do that for you and we can deliver great selection thanks to the com the nation of our plugin with CHADGPT.

So what's the result been for Touro has an increased volume of traffic to the app or any actually easier matches.

So what's the result been for Touro has an increased volume of traffic to the app or any actually easier matches.

It's easier matching. Yeah, we're seeing both an increase in the matching grades as well as growth in traffic because more and more people are discovering now Turo through chat gpt, which is really an interesting.

It's easier matching. Yeah, we're seeing both an increase in the matching grades as well as growth in traffic because more and more people are discovering now Turo through chat gpt, which is really an interesting.

Development for us.

Development for us.

Final quick quick one growth of Touro. Where are you growing right now? You know, either here domes in the US or internationally.

Final quick quick one growth of Touro. Where are you growing right now? You know, either here domes in the US or internationally.

Actually, we're growing in all of our locations. We expanded last year in France and Australia. Australia was our most recent launch in November of last year. The US business continues to grow rapidly, and you know, we're excited to continue to expand geographically. We see turo having an opportunity to be everywhere around the world.

Actually, we're growing in all of our locations. We expanded last year in France and Australia. Australia was our most recent launch in November of last year. The US business continues to grow rapidly, and you know, we're excited to continue to expand geographically. We see turo having an opportunity to be everywhere around the world.

All right to our CEO, Andre Hadad, it's good to catch up back in SF on Bloomberg Technology.

All right to our CEO, Andre Hadad, it's good to catch up back in SF on Bloomberg Technology.

That does it.

That does it.

Sadly for this edition of Bloomberg Technology, what a week it's been for earning for markets, for AI for billionaires, so much news about billionaires.

Sadly for this edition of Bloomberg Technology, what a week it's been for earning for markets, for AI for billionaires, so much news about billionaires.

But there's a lot more to come.

But there's a lot more to come.

And you can always recap everything from the show on our podcast wherever you get your podcast. We're on Apple, We're on Spotify, and we're on iHeart, and of course we're.

And you can always recap everything from the show on our podcast wherever you get your podcast. We're on Apple, We're on Spotify, and we're on iHeart, and of course we're.

On all of the Bloomberg platforms.

On all of the Bloomberg platforms.

From here in San Francisco, Caroline Hide and New York's coming back soon, guys. I promise this is Bloomberg Technology.

From here in San Francisco, Caroline Hide and New York's coming back soon, guys. I promise this is Bloomberg Technology.