May 16, 2025 • 42 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss President Trump’s tech-focused trip to the Middle East. Plus, Airbnb CEO Brian Chesky explains the revenue opportunity the company sees in services as it launches a redesigned app. And Prosus CEO Fabricio Bloisi says partnerships and acquisitions are part of the company’s efforts to become the biggest tech lifestyle company outside the US or China.
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Speaker 1 (00:00):
From the heart of where innovation, money and power collide
in Silicon Valley and beyond. This is Bloomberg Technology with
Caroline Hyde and Ed Ludlow.
Speaker 2 (00:27):
Live from New York and San Francisco. This is Bloomberg
Technology coming up. President Trump says global trade deals and
tariff rates are coming in weeks as he ends his
technology tour of the Middle East.
Speaker 3 (00:38):
Plus M and A and focus in the world of
US cable providers, with Charter agreeing to combined with Cox
in a deal valued at about thirty four point five
billion dollars.
Speaker 2 (00:47):
And we're joined by Airbnb CEO Brian Cheski after the
company unveils an app overhaul, a new services offering, and
a relaunched experiences product. But first we check in on
these markets, which are having a stellar We are up
more than six percent on the NASAQ one hundred over
the last five trading days. We call in terms of
that investor enthusiasm on the day, but look, consumer sentiment
(01:09):
ugly ed the second.
Speaker 4 (01:10):
Worst on record. We've had some really painful readings across the.
Speaker 2 (01:13):
Economy, but maybe inflation not as bad as we expected,
and it is risk one when it comes to tech.
Speaker 3 (01:19):
We had technology earnings overnight, I go to Applied Materials.
This is America's biggest chip making or chip equipment maker,
and you can see the stocks down negatively current period
week outlook, concern about trade, particularly with China. There's a
bigger conversation to be had here about the reality of
what's happening in investment going forward despite all the hype
(01:40):
with chips. Speaking of hype, We're going to go out
to the Middle East soon, right, And the big beneficiaries
of President Trump's visit are on this screen, principally in video.
Video is up for a fourth straight week, a four
straight weekly gain, up fifteen percent on the week, and
I'm sure Amhmrie is going to talk about how Jensen
was by the President's side every step.
Speaker 5 (02:01):
Of the way.
Speaker 3 (02:01):
Comparing contrast with Apple, it's still up six percent despite
the negative headlines, but it's rebounding from last week where
it's sort of declined.
Speaker 2 (02:08):
Character extraordinary amount of market capitalization added what more than
four hundred billion dollars to in video alone over the
last five trading days. And that's as President Trump said
though that he actually will be looking back at tariff
rates for US trading partners d quote over the next
two to three weeks, saying his administration actually lacks the
capacity to negotiate the deals with all of its trading partners.
(02:29):
Let's just run through the week that was with Trump's
visit in the Middle East. Bloomberg's amorihood and joins US
now from Abu Dhabi, and he's taken off.
Speaker 4 (02:37):
He's jetting home.
Speaker 2 (02:38):
But he leaves a lot of tech optimism in his weight,
but a lot of anxiety when it comes to tariffs
still to deal with.
Speaker 6 (02:47):
Yeah.
Speaker 7 (02:47):
Absolutely, And the President talked about those tariffs today, talked
about the fact that there's so many countries that are
lining up and want to negotiate with the administration, but
right now they're focused on the main trading partner of
the European Union in Japan India when it comes to
these other countries. And the President has said this in
the past, most recently last week I was with him
in the Oval office and he talked about this, said,
they're just going to set the rate for these countries
(03:09):
and let them know where the new rate is. Remember
Liberation Day, April second. That's how the administration want to
frame it. Very high teriff rates for a number of countries,
they put all that on pause, so potentially in July,
some of these countries they haven't been able to have
these bespoke agreements with, they're just going to set a
new rate. So the President is just supposing a lot
(03:31):
of issues at once. He's still facing some pushback when
it comes to countries and investors, when it comes to
the tariff policy and the fact that trade deals can
take years, with the fact that he's inking deals across
the entire Middle East between riod Doha and Abu Dhabi
and Caroline ed, you're one hundred percent right. Tech was
(03:52):
really the star of this entire trip, specifically Nvidia and
Jensen Wang. And when I spoke to him briefly in
Riatto's during this honorary dinner for the President with the
Crown Prince Mohammed ben Salman, I asked him about the
diffusion role. I said, you must be happy they rescinded,
and he said, rescinded, canceled, and because of that he
(04:12):
is going to be able to get more of those
advanced chips into the Middle East. The President name checked
him and Riyad saying, my friend Jensen Wang is here,
and then.
Speaker 4 (04:20):
A remarkable photo.
Speaker 7 (04:22):
Really yesterday in Abu Dhabi, as Commerce Secretary Howard Lutnik
was signing this AI partnership between the United States and
Abu Dhabi.
Speaker 4 (04:31):
That would mean building.
Speaker 7 (04:33):
The biggest AI data center outside of the United States
right here in Abu Dhabi.
Speaker 4 (04:37):
Look at that photo.
Speaker 7 (04:38):
He is standing in between President Trump and Sheik Muhammad Benzayad.
Speaker 4 (04:43):
It's Jensen Wang.
Speaker 7 (04:44):
He's been everywhere on this trip and you can kind
of see why.
Speaker 3 (04:48):
Bloom E exam Marie Horden with everything from the ground
and a long week on of Middle East tour.
Speaker 5 (04:52):
Thank you very much.
Speaker 3 (04:54):
Let's get more on what markets think about President Trump's
aideals and what that means for technology Epek. This Shia
is Swiss quote senior analyst, and I showed that chart
at the top of the show, right, Nvidia, Amazon, and
Apple over the course of five days as an investor
in those names in that sector. What's been the net
(05:17):
result for you of everything that's happened this week.
Speaker 8 (05:21):
Well, the big technology companies have had a very difficult
quarter with the Chinese AI competition coming up, and the
trade at tensions and the deals, the Middle East visit
and these deals are coming right at the best imaginable
time so far this year. First of all, we have
been seeing companies delaying their AI investment plans due to
(05:44):
tariff uncertainties, and there are a lot of questioning regarding
how much of these investments could still materialize given the
gloomy economic outlook. And the deals just come at the
very best time and from the well the richest countries.
Speaker 6 (05:59):
In the world.
Speaker 8 (06:00):
So there is a reason in media john to fifteen
percent since Donald Trump's Middle East visit. We think that
the NVIDIA deals with the Saudi and Qatar and abudeb
is just going to fill in the gap at a
very very critical time for the chip industry. There is
one thing, though, we start hearing that at the White
(06:20):
House some politicians, some members are not fully comfortable with
the idea of selling chips to the Middle East due
to the national security reasons. But that's a story to
be followed for now. Though the optimism has strong legs.
Speaker 5 (06:35):
I want to go there.
Speaker 3 (06:36):
Am Marie talked about the sort of significance of the
images we showed, which was Jensen Wong standing between the
President of the United States and his UAE counterparts. But
actually there are deep concerns that the rescinding of the
diffusion rule, those are those pictures now? Good job to
the team in New York does not at all answer
the question about China. We don't know anything about rules
(06:59):
for China. Has the market yet to price that in?
Speaker 6 (07:03):
Well?
Speaker 8 (07:04):
I think that most of the Chinese trade war has
already been posced in and investors have somehow came to
the conclusion that okay, China will well gently get out
of this picture and has a slower exposure to well
to the Western world and vice versa. So there is
now the thinking emerging that because China is willing to
(07:25):
gain its independence and it looks like it could get
there with their own means, that's going to be the
future for the Chinese companies. There is this thinking that
China is willing to gain its independence and if they
do so, actually that's going to be a positive for
Nvidia because the trade tensions will not necessarily will hit
them as hard as they have been hit over the past.
Speaker 4 (07:45):
Couple of months.
Speaker 8 (07:46):
This being said, while China's still remains a big chunk
of the Nvidia's revenue, So before we get there, we
still have some bomb Heerio to go.
Speaker 2 (07:53):
If it broadened it out because in video, yes crushes
it on the week up fifteen more than four hundred
billion dollars in market cap added, it's again a three
trillion dollar company. Are the legs left to run with?
In videos? Up to the right and indeed tech more broadly, Well.
Speaker 8 (08:09):
I think that Nvidia still has earnings to be announced,
and we expect that the earnings are going to be
strong enough to keep the optimism going. We shouldn't forget
that Nvidia had a very difficult quarter and we saw
a very significant fall in a strape price and also
in its validation.
Speaker 7 (08:25):
And right now with the.
Speaker 8 (08:26):
Arrival of the good news and big lions that actually
counter with the idea and the worries that the big
technology clients could be finding their ways out of Nvidia
is obviously a very positive view, and we think that
Nvidia does have potential to extend and to well extend
is rarely on the Middle East deals. If obviously the
Middle Ist deals materialized and there is not a problem
(08:49):
barrier in the future.
Speaker 4 (08:51):
Yeah, it's so definitely.
Speaker 8 (08:53):
Yes, it has been a right positive for Nvidia thing.
Speaker 2 (08:56):
I mean, it's been an outright positive for many a
tech stock this week looking Alphabet more than nine percent
over the last five trading days.
Speaker 4 (09:03):
That's despite the ongoing worries that this is a company
that might be forced to break apart.
Speaker 2 (09:07):
Meta also investigation with its monopolistic as has been deemed
by the FTC monipolistic position. What do you think are
some of the risks that investors perhaps aren't tuning into
right now.
Speaker 8 (09:20):
Well, one of the other risks that we see because
we are in Europe, is that if.
Speaker 4 (09:23):
The trade negotiations don't go well with the.
Speaker 8 (09:25):
European Union, the European regulators will be going after companies
like Google and Facebook, big technology companies. They have been
very clear warning the United States about that. So I
think that one of the trade risks is on these
companies that have been spared so far because they are
offering digital services, and it was mostly the companies with
(09:46):
complex international supply chains like Nvidia, like Google, Apple that
have been very very hardly hit. We think that there
are still risks there that have maybe not been fully
priced in.
Speaker 4 (09:58):
Obviously, the risks.
Speaker 8 (09:59):
Are two sided, because there is always a chance that
the European Union and the US striker deal. But if
that's not a decase I think that Microsoft, Girl and
Facebook are also going to come under pressure.
Speaker 3 (10:10):
Eupe Cosko Deshkaya of Swiss Coat. Great to have you
back on the show. Thank you.
Speaker 5 (10:15):
Another news story I've been writing about this.
Speaker 3 (10:16):
Morning, Tesla is adding a long time Chipotle executive to
its board. Jack Harton, will join as a director a
member of the board's audit committee as of June one,
Tesla said in a filing. This comes as the Carmakers
grappling with forny questions over Elon Musk's compensation and its
strategic direction.
Speaker 2 (10:44):
Charter Communications, well, let's agree to combine with privately held
Cox Communications in a deal that would unite the two
of the biggest US cable providers.
Speaker 4 (10:51):
The transaction will.
Speaker 2 (10:52):
Value Cox at about thirty four and a half billion,
including debts, according to a statement Friday that actually confirmed
earlier Bloomberg News reports.
Speaker 4 (10:59):
Who that reporting, Michelle Davis was and she joins us.
Speaker 2 (11:02):
Now, Michelle's interesting that this is a fiercely competitive space.
Speaker 4 (11:06):
Does it just have to end in consolidation?
Speaker 9 (11:08):
That's basically what the Cox family is saying. I mean,
they have been owners of cable assets for seventy years,
and the fact that they're now saying okay, it's time
to combine means that that's how fierce it is. And
you know what's going on is cable companies have been
making their revenue from Internet, but everyone has Broadway ad
Internet these days. And at the same time, the phone
companies are getting into it and people are cutting the cord,
(11:29):
and so the idea is this is what they have
to do to survive.
Speaker 2 (11:33):
John Malone is the billionaire that's sort of behind some
of these deals. In fact, maybe he signaled this earlier
than the deal came about.
Speaker 5 (11:41):
Right.
Speaker 2 (11:41):
He had an invested Day saying, look, I want.
Speaker 4 (11:43):
To combine Charter with someone else. I need to be
able to make a deal here.
Speaker 9 (11:47):
Yeah, this is one of those perennial deals that John
Malone has wanted to do for more than ten years,
and it took time for it to get there. But
in December November, during the Liberty Media Investor Day, he said,
it's so competitive. The tech companies are allowed to just
roam the earth without limits, and why should cable companies
just be restricted to one part of the country. They
should be allowed. Charter, he said, should be allowed to
(12:09):
merge with Cox, Comcast or T Mobile, and I guess
they chose Cox.
Speaker 2 (12:15):
And what's interesting is that meanwhile, the T Mobiles, the
AT and t's of horizons are busy trying to do
wireless offerings and they're almost offering their.
Speaker 4 (12:22):
Services to tom cable providers.
Speaker 2 (12:25):
Is this therefore going to get through regulatory scrutiny because
it's just so fiercely competitive.
Speaker 4 (12:29):
So it's going to be.
Speaker 9 (12:30):
The big litmus test of the Trump administration to see
how it's received. The companies clearly believe that they have
a shot at getting it through the way the cable
industry is structured in the US means there's not any
overlap in terms of geographies that these companies play. And
I think part of why they're focusing on this competitive
element is because their argument is we need to do
this to survive.
Speaker 2 (12:51):
It's been great talking to Michelle Davis. We appreciate it. Meanwhile, Ed,
you're looking another key story.
Speaker 5 (12:57):
Yeah.
Speaker 3 (12:57):
Turning to Coinbase, the crypto platform disclosed it had suffered
from a hack that leaked sensitive customer data going as
far back as January, the revelation coming just three days
after Coinbase was added to the S and P five
hundred bluing Bosse Margie Murphy's here, let's go to the
basics and details of the hack. What were hackers able
(13:18):
to obtain, how did they do it, and what was
the kind of net effect for coinbase and coinbased customers.
Speaker 10 (13:25):
Right, so, back in January, the threat actor realized that
they could get access to some of Coinbase's contractors in
their customer support assistance teams, and essentially the threat actor
was bribing individual employees or contractors and saying I'll give
(13:46):
you cash if you give me the information on coinbased customers,
and that has been They have been giving a drip
feed through since January up until around this week when
Coinbase say it received an anonymous email saying, I'm the
person who's been bribing your customer support assistance. I have
(14:07):
this pool of information on some of the most valuable
customers you own. Give me twenty dollars at twenty dollars,
give me twenty million dollars.
Speaker 4 (14:17):
And I will delete that information.
Speaker 10 (14:20):
And this week Coinbase will yesterday disclosed that that had
been going on and that they refuse to pay the
ransom and they wanted to come public with it instead.
Speaker 3 (14:30):
That's right, if you're just tuning in, I mean Coinbase
shares are pretty buoyant, and Friday session they had fallen
by seven percent or so in Thursday session. The simple
question is what happens next?
Speaker 10 (14:44):
Right, So Coinbase is estimated that this is probably going
to cost them around four hundred million, And what they're
saying to customers is, look, they hacker didn't access your
account through us, but they got a lot of information
that they could very easily socially engineer you. So they've
been sending out emails to people they believe have been affected,
(15:05):
and they are saying, if you do suffer a loss
as a result of this data being leaked, we will
compensate you.
Speaker 3 (15:14):
Marg I'm sorry to interrupt you in your career covering
cybersecurity and.
Speaker 5 (15:20):
Hacks like this.
Speaker 3 (15:21):
Where does this rank in sort of corporate worlds?
Speaker 5 (15:28):
It's pretty bad.
Speaker 10 (15:30):
It's the way that the hackers can use this information
to target wealthy people. They are able to see the
balances in their coin based accounts, and they now have
very very detailed information on these individuals that they can
go and socially engineer them, not just to get into
their coin based accounts, but into other financial accounts that
(15:53):
they might own, and by social engineering. I mean calling
up and saying I'm a bank support assystem and when
the person questions, well, you know, how can you prove that?
Give me some information about my account, and they can say, well,
I have names, emails, balance, you know your last transactions.
It's all very convincing information. So I think in terms
(16:17):
of they may not have got an inter coin basis
systems per se and broken into their networks, but the
mushrooming effect this will have on people's personal data and
the potential impacts that could have on people in individuals
losing their money.
Speaker 5 (16:30):
Is a pretty big.
Speaker 3 (16:33):
Moodlo's Margie Murphy on a breaking and fast moving story,
Thank you very much. TikTok is willing to talk about
it's Brazil operations with the South American country's government, according
to an official. This follows a visit to China earlier
(16:54):
this week, when President Lula and the First Lady expressed
concerns over the potentially harmful the app may have on
children and women.
Speaker 2 (17:03):
Character let's just turn a rotation to other social media
players because meta ed share still lower. That's after The
Wall Street Journal reported that the company will delay the
release of its AI model, the latest one it's called
Behemoth for more Bloomberg, Riley Griffin can talk not only
about the AI models but also what's been happening with
the FTC.
Speaker 4 (17:19):
But I go first to Behemoth.
Speaker 2 (17:21):
How important is it that then perhaps not able to
make significant incremental improvements on the overall model.
Speaker 11 (17:28):
So this is Meta's biggest model. It's one that they
have pointed to as a landmark and said that is
better than chat gbt's comparable model, Claude's.
Speaker 4 (17:40):
They've topped a.
Speaker 11 (17:40):
Big game about Behemoth. The delays here are interesting. They
were supposed to release the model on April, according to
our colleagues at the Wall Street Journal, but it's now
looking like it'll be delayed to the far And the
point here that I think we need to take Carolina,
is that each incremental development is going to become increasingly
(18:01):
harder to achieve. Some of the big advancements that we
saw earlier on twenty twenty two, twenty twenty three through
now it's becoming harder and harder to advance these models
in ways that are worth the releasable milestone.
Speaker 3 (18:15):
Well, it's a difficult undertaking, right, But did the report
say specifically why it's delayed or who made the call.
Speaker 11 (18:22):
The report said that internally, senior executives at the company
are disappointed with the team and the milestones that they're
reaching so far. It didn't explain exactly why it was
being delayed, so we're going to have to keep watching
this story unfold.
Speaker 4 (18:37):
And Meta at this time is not commenting.
Speaker 2 (18:39):
I mean, it is interesting, isn't it that all of
this comes at a time with Meta that not only
are they trying to push the envelope and general to AI,
but they're also under a lot of stress. It would
see you in the courts trying to say, look, Instagram
and overall WhatsApp are not monopolistic. There are so many
others out there competing, But the FDC thinks.
Speaker 4 (18:59):
That they're on to snap no doubt.
Speaker 11 (19:01):
And AI, as you mentioned, here is not just a
story about the chatbots and the models, but it's about
how they're integrated into the applications themselves. So the future
of Instagram, the future of WhatsApp has a lot to
do with the capabilities here.
Speaker 3 (19:15):
Bloombo's Riley Griffin, thank you very much. A big take.
Microsoft co pilot AI is gaining traction among its customers,
but the company's investment and relationship with open Ai could
complicate things for CEO Setia Nadella. It's the subject of
today's Big Take bloombosostin Car wrote it and joins us
now in part this is informed with time you spent
(19:36):
with missing Nodella. Right, but the Copilot launch wasn't smooth,
wasn't great. They want to put time into it. They
have to manage their investment and relationship with open Ai,
which has a competing set of products and offerings.
Speaker 5 (19:51):
Yeah, that's correct.
Speaker 12 (19:52):
I mean I would just you know, turn to your
viewers out there and ask have you used Copilot or
has it more likely that you're using chat Ept if
not even pay for chatchipt subscription. And that's the big
challenge for Microsoft right now. You know, open Ai really
was successful thanks to Microsoft It's thirteen point seventy five
billion dollar investment over the years in the company, as
(20:12):
well as all the money it poured into GPUs and
data centers to help with that back end processing. The
issue is that that sort of gave open Ai headstart,
but Microsoft has had to play catch up on its
own app offerings like Copilot, which is both available in
the enterprise for customers using Word and Excel, as well
as a standalone consumer version which you can get on
Windows Max and your iPhone. And it's just really been
(20:35):
a challenge for Microsoft to show why it's different because
a lot of people at the beginning just saw it
as a knockoff of Chatchipt with a different brand name,
because it was still tapping into open AIS models underneath.
And that's what Sachnadela is trying to differentiate now, building
up Microsoft's own models, trying to differentiate their product through
integrations with Microsoft software.
Speaker 2 (20:54):
You've got Mustafis Suleiman, who we all know well on
the consumer side. Can you introduce us to a new
executive that Feathers might not have heard or so much.
Speaker 4 (21:01):
Asha Shama really leading the.
Speaker 2 (21:03):
Charge here from the company's AI platform perspective.
Speaker 4 (21:07):
What does she bring?
Speaker 12 (21:08):
Yeah, I mean, I think what's so fascinating here. She's
building up a product called Azure AI Foundry, which is
their sort of AI marketplace that's available on Microsoft's leading
cloud platform. And I think, you know, a lot of
people have this grand misunderstanding about Microsoft that it's really
wetted to Open AI, when in fact that a model
marketplace offers about nineteen hundred very varied models, including internal
(21:31):
Microsoft models as well as external third party ones like Meta,
which you were just talking about a moment ago. So
Microsoft is and Sachandela are really hedging their bets on.
Speaker 5 (21:42):
Open Ai.
Speaker 12 (21:43):
So you can rent open Ai models through Azure Ai
Foundry with something Asha is leading, but you can also
get access to cohere, Mistral, Meta, as well as more
recently Deep Seeks models that are adding to the platform.
Speaker 2 (21:54):
Austin Khr It's a brilliant read Go get it on
BusinessWeek along and very deep and thorough one on Microsoft
as it stands. Welcome back to Blueberg Technology. I'm Caroline
Head in New York and.
Speaker 5 (22:12):
I met Lodlow in San Francisco.
Speaker 3 (22:13):
So, like in the moment this Friday, when we think
about at the index level in markets, tech's kind of
taking a time out with flat on the Nazak one hundred,
but it has been a strong gain on a weekly basis.
We're up about six percent on the Nazak one hundred.
Speaker 5 (22:26):
A lot of.
Speaker 3 (22:27):
What's driven that gain over the course of the week
has been the technology companies that have been beneficiaries of
President Trump's visit to the Middle East, the AI infrastructure deals.
You're in videos, your Dell's, your Amazons, for example.
Speaker 5 (22:41):
But the story this Friday is a little.
Speaker 3 (22:43):
Bit economic, Caro, and we'll get to it later in
the program. A gauge of US consumer sentiment was worrying,
I think to the markets. But again from a headline perspective,
there's been a fire hose Monday through Thursday, and I
kind of feel like in the world of tech, at
least we're taking a time out.
Speaker 2 (22:58):
We are indeed maybe a whores, but there's no pause
in terms of deal making right now. And let's just
go to food delivery company s ED. They have been
hungry for consolidation, using deals to enter new markets and new.
Speaker 4 (23:09):
Areas of lifestyle.
Speaker 2 (23:10):
Basically this all includes Process which just announced, of course
relatively recently, to buy just Deep Takeaway for four point
three billion dollars. There's new strategic partnership between Uber and
Processes Brazil portfolio company I Food, and not to mention
the fact that they're getting into travel as well, with
a completed deal just announced overnight Fabricio Bluisy is with
US CEO of Process Group.
Speaker 4 (23:30):
You are such a global company, I know You've just.
Speaker 2 (23:32):
Been deemed Brazil's Man of the Year, so your voice
is a little bit horse.
Speaker 13 (23:35):
Congrats, no caroline for you again.
Speaker 4 (23:39):
Well, congrats also on all this deal making.
Speaker 2 (23:41):
But I'm really interested is to let's just go to
say the strategic partnership with Uber in Brazil. Why decide
that's a partnership and that's not m and A to
add on delivery services and mobility.
Speaker 6 (23:54):
We are super.
Speaker 13 (23:54):
Excited about for the leivers. You know, we just announced
two months ago the four and a half Beati an
acquisition of just It's takeaway or waiting for the confirmation
of this exhibition. But Latin America is very important for
our strategy. Latin America ecnsistem there, so we have not
only eyefood but our payment business, but our event business.
We just close it today. Our travel transaction there it
(24:17):
was approved today. So we just bought Despegar for close
to Tribulio Europe. But we don't have our hailing offer
and what we did was a strategic partnership with Uber,
so Uber do not have the food delivery. Now Uber
will have Eyefood inside Uber and we will have right
Hailey inside Eyefoods. We think we can serve much better
(24:37):
our customers, not only our customers, but Uber customers. Working together.
I think that's the future. Offer more to our users.
It's a partnership and we are very excited about that
to work closely with Uber.
Speaker 5 (24:50):
Let's talk about the mechanics of the deal. You're a
deal maker.
Speaker 3 (24:53):
What is the sort of regulatory path been like in
that country, what's it like doing business in that region,
and so the basics of our audience. You're going to
get that deal closed and done right.
Speaker 13 (25:05):
We are very excited that should they A few hours ago,
we just got our online travel agency deal closes. This
is Despegar, So we acquired Despegar. It was approved today
by the regulators. You're very excited about that. The Uber
deal is not a merge, it's a commercial partnership. We
are going to offer to our customers access to Uber,
(25:27):
their customers access to ie Food. So we are not
waiting for reglatory approval for this deal. We can move fast.
We can offer better service to our customers. That's the idea.
Speaker 2 (25:39):
And I'll just jump in now because I think what's
interesting is how you align data sharing with Uber. How
do you decide what revenue each one takes. What is
the deal, the intricacies of the deal here that benefits
both of you because I know you're focused on data,
because that's the AI win, right.
Speaker 5 (25:54):
Yes, perfect.
Speaker 13 (25:56):
This deal specifically is about offering more services to our customer.
So we're not sharing revenue. We are going to keep
the food deliver revenue. We keep the right haling revenue.
What we do is to offer to all customers in
Brazil food delivery and rite healing together. That's the focus
of the deal. But last time I came here to
talk to you in London, actually talk a lot about
(26:16):
AI and that's the biggest focus of process. I just
released a letter this week talking about we are doing
super well. We are growing a lot. We are more
than ten percent better than the forecasts I gave. But
besides that, I'm more excited about how fast we are
moving in AI. We announced our large Commerce model that
is a very big AI model that constantly dates all
(26:38):
transactional information in all processes to train a model to
serve better our customers. So we are innovating O lots,
using open aio four and deep secret, all kinds of
new models to really make a step forward in how
AI advanced on e commerce, so data is a big
priority for us. We are investing a lot on that
and we are just starting to release the good results
(27:00):
of that.
Speaker 2 (27:01):
And what you call yourself is sort of lifestyle e commerce,
So sorry, what else do you bolt on? Look, we've
got the food delivery, you've got the mobility side, you've
got the travel with this new travel operated that you've been.
Speaker 13 (27:10):
Buying payment, and I think it's good enough for now,
So let's me deliver lots of results on that. And
now we'll put some adjacents before. But as you can see,
food delivery is very important because food delivery is a
very high frequency business. People buy sometimes five, ten, twenty
times per week. So on top of food delivery, we
are putting many other adjacentcies as payments, as travel, as events.
(27:34):
But why I'm very excited now pros now is much
more focused in three ecosystems. The first ecosystem of our
focus is Latin America, so you have all these business,
all these offers working together in Latin America. Our second
focus is India and we have also Swiggy that is
a food deliver business in Ninjia. On top of that, payments,
pay you and Mashe and Urban Company other companies in India.
(27:57):
So you're doing the same ecosistent approach in India. In
our third and I'm very excited about that. Focus is Europe.
I think Europe needs big tech in Europe. Now, we
just bought just each Takeaway. As I told you, next
least time, we have eighteen billion dollars to invest. We
want to invest a lot in Europe and on top
of Just Takeaway as soon as our deal is approved,
(28:20):
so we are waiting for Europe to approve that. We
are going to be able to invest ten times more
in AI in Europe.
Speaker 6 (28:25):
That's my big goal.
Speaker 3 (28:27):
So, Fabrizia, you took us around the world there on
a jet plane. But with the just Eat deal, there's
a shareholder complaint, right They basically think twenty euros and
thirty cents is less than half what you should be paying.
Speaker 5 (28:40):
What's the latest on that? Do you see it changing?
Speaker 13 (28:44):
I we have very confident this is a very good
offer for both sides. We are paying around fifty percent
a little more fifty five or sixty percent premium in
the in their previous price, so we have very confident
this is a great offer. We got very good reception
for most of the shareholders. Our expectations to close. We
(29:05):
have a strong expectation to close at the offer, and
we seek it's an amazing offer to the shareholders.
Speaker 3 (29:12):
What are the regions next? Which country are going to
surprise us with with your next deal? We just have
ten seconds.
Speaker 13 (29:18):
Late in America, Inja, in Europe, the biggest tech company
outside US and China. Let me surprise you get into
two hundred billion dollars very fast and come here to
talk to about our next steps.
Speaker 5 (29:30):
Fabt Blue CCO process great. Great to have you back
on the show.
Speaker 2 (29:34):
We welcome to our radio and TV audiences worldwide. Now
Airbnb out with a redesigned app that puts a great
emphasis on services, on one of our kind experiences.
Speaker 4 (29:43):
But this is us.
Speaker 2 (29:44):
Of course, anxiety remains about consumer sentiment, about our desire
to travel abroad. Right now, let's get through all of
that with Airbnb's plans. We're John by CEO Brian Chesky,
Brian welcome and AIRBMB more than a home. You want
to be sort of an Airbnb for the world and
for services. Tell us the revenue drivers here. Why is
more experiences, more services going to lead to a bigger
(30:06):
business and investable opportunity.
Speaker 14 (30:08):
Well, I mean as big as the VERBMB is, and
we do around ninety billion dollars a year in bookings.
There's so much greater opportunity for people to monetize the
biggest asset in their life.
Speaker 6 (30:18):
And it's not their home, it's their time.
Speaker 14 (30:20):
And so what if all the people's skills, all the
people's passion, their expertise could be monetized. A huge percent
of the jobs in the United States around the world are
becoming essentially services jobs. And there is no Amazon for services.
You know, people say Amazon's the everything store. It's kind
of the everything in a cardboard box store. But there's
this whole other world. It requires trusts, it requires two
(30:42):
people to have an exchange between one another. I think
that's where Airbingby's core competency is. What we built is
an extensible platform that's not limited to homes.
Speaker 2 (30:51):
What's interesting is the chefs, the massages, the other key
at services that you're offering do have to be vetted?
Speaker 4 (30:56):
Yes, that's when you get the scale.
Speaker 2 (30:58):
How are you going to scale that If you're doing
this on a person to person basis, how much does
mL then take over?
Speaker 6 (31:03):
Yeah?
Speaker 14 (31:04):
I mean, I mean a lot of what we do,
and I think a lot of what everyone in technology
does is you start things by hand, You learn the rules,
and you train the technology, and the technology takes over
either does it or it augments the people.
Speaker 6 (31:15):
And that's exactly what it was like here.
Speaker 14 (31:17):
We start very much by hand, and then we build
tools to automate the task that people are doing.
Speaker 3 (31:22):
Brian, I started using Airbnb in the UK around twenty
ten eleven when I went to college, right, and that was.
Speaker 5 (31:30):
Before Uber even launched in the UK.
Speaker 3 (31:33):
And when I think about the development of platforms and
app technologies like yours, the one point of difference than
Airbnb has versus an Uber is that you don't yet
have advertising, whereas you look at Uber's ad growth now
for them.
Speaker 5 (31:47):
On the investor side, it's a really big thing. How
do you think about that?
Speaker 6 (31:51):
I think it's a huge opportunity.
Speaker 14 (31:52):
You know, one of the frameworks I really like around
how to invest is you want to invest in the
most perishable opportunit unities first, and so we think a
really perishial opportunity is you know, launching services and experiences.
The timing is right. We think advertising is a huge
opportunity for us. It's an inevitable opportunity for us, but
(32:14):
we don't think it's the most parishal opportunity, so it
hasn't been something we've prioritized in our near term roadmap.
I also think it's really good to first extend our
platform from homes to services, experiences in beyond, so when
we build things, we can build them as a horizontal
platform inevitable.
Speaker 5 (32:31):
That's that's really interesting.
Speaker 3 (32:33):
You've got a lot of credit this week for the
relaunch of the app and its ability to give you
some long term growth. I'd just be grateful to hear
how you think it will drive long term growth. I
think from the streets perspective that's more about revenue growth
and profit, but maybe scale of the platform as well.
Speaker 6 (32:50):
I think there's three things.
Speaker 14 (32:52):
Number One, there's a whole bunch of people who don't
book airbnbs because they don't come with services.
Speaker 6 (32:57):
They go to hotels.
Speaker 14 (32:58):
So what if you get after all the hotel services
of a hotel and more in airbnb. So that's one
way we actually could grow is to get a lot
more customers. The second way we can grow is a
lot of people use Airbnb, but the only book one
thing on the reservation home, so we can essentially get
a greater share of wall on the trip. The third
and the longest term opportunity is local demand. We think
(33:19):
a lot of these services and experiences that were initially
building out for travel consumers are eventually going to be
things that are going to want a book in your
own city, and that is an even significantly greater market.
Speaker 6 (33:28):
So there's really these three types of horizons.
Speaker 2 (33:32):
Coast playing with Megandee Stallion, learning volleyball within Olympian in Rio.
Speaker 4 (33:37):
How did you get these one off experiences? I mean,
is this making some phone calls?
Speaker 6 (33:40):
Yeah?
Speaker 14 (33:40):
I mean like, well, a year ago we launched icons.
We're shared these extraordinary experiences hosted by the biggest names
in culture. We had, you know, we have made the
uphouse float in the sky, and we did all these
really cool experiences, and then we started thinking to ourselves,
how do we bring that magic to experiences?
Speaker 6 (33:55):
And we built this.
Speaker 14 (33:56):
Network of really interesting celebrities and global icons. And one
of the that we found is they a lot of
them heard about what we're doing. They reached out to us.
I think a lot of these global celebrities want to
connect direct with their fans. They don't just want to
have a parasocial relationship on social media. And I think
the more we talk about AI, the more we start
to realize that we are accelerating our life living in
(34:18):
a digital realm. We're spending more and more time on devices,
and we want to be the kind of company they're
getting people off devices into the real world just as
a balance, and I think that could be a very
exciting proposition for the future.
Speaker 2 (34:28):
As you can imagine, this show's been talking about AI
relentlessly for the last three years, but we took a
pause started talking about taris and the economy relentlessly. You said,
now is the perfect moment to be launching these services
and experiences. Why in this environment where you saw consumer
sentiment today is woefully low.
Speaker 14 (34:45):
I mean, well number one were reported really really good
growth within travel, So I think people are still traveling,
and I think when the consumer sentiment is and steady,
they still want to travel, but they often want to
find more affordable options.
Speaker 6 (34:58):
Airbeanbe's a great way to do.
Speaker 14 (35:00):
But beyond that, like this is a very long term
bet that we're making over the next five years, and
I think this will endure across any kind of economy.
Speaker 6 (35:08):
It's just good to remind people.
Speaker 14 (35:09):
Everybody started during the great recession of two thousand and eight,
and so I think a lot of the great businesses
are starting during you know, kind of a weekend economy.
Speaker 3 (35:18):
Brian, you're pivoting to founder mode, right, Yeah, how's that
going to help Airbnb navigate the world that it's in
right now?
Speaker 14 (35:26):
I think founder mode basically just means like running a
large company with the hands on approach, where you're in
the details, your leaders in the details, and everyone's rowing
in the same direction like a startup. I think those
principles are more important now than ever with this new
technological revolution that's in front of us. You need people
(35:47):
that are able to basically have their hands on the
steering wheel and not be you know, in essentially like
a self driving car, which is you know how more
professional managers typically run things. So I think this is
the perfect time to lean into the future, to put
the pedal of the metal, put your hand on the
steering wheel, and really drive transformation. And I think a
lot of the great companies in history have been led
(36:08):
that way.
Speaker 3 (36:09):
With that in mind, Airbnb, the technology company, what's its
call competency.
Speaker 6 (36:15):
What are your.
Speaker 3 (36:16):
People really good at that other companies are not.
Speaker 14 (36:19):
I think a few things all probably a few, but
I'll highlight just two on the right now. The first
is our application. I think we have one of the
most beautifully well designed and build apps in the world.
We're able to show it is incredibly intuitive. I know
we I believe we were one of the best design
teams in the world. So we have really great applications,
and so take AI. There's a lot of development on
(36:42):
the application, the on the large language model layer, but
the applications haven't seen a lot of development. If you
pick up your phone, almost every app looks exactly like
it did before Generator of AI came on the scene.
Speaker 6 (36:53):
So that's the first thing.
Speaker 14 (36:55):
The second is probably even more important the offline world.
Speaker 6 (36:59):
We're really good at building apps, but I think we're even.
Speaker 14 (37:01):
Better at designing this system of trust between two strangers
to live together. I mean, nearly four million people a
day live together in Airbnb and nearly every country in
the world.
Speaker 6 (37:11):
Think about all the ways.
Speaker 14 (37:12):
You need to keep people safe, handle their issues, match
supply and demand, facilitate money, you know, make sure they're
having great experiences. There's so much more the offline world
the Airbnb. When people seebnb, they see an app, and
the app is just to scratch the service of our community.
Speaker 4 (37:29):
I love that you're talking online and offline.
Speaker 2 (37:30):
Briefly when you're thinking about Karna, having to decide that
actually all the AI focus has to be unwound a
little bit. Customer service is not working as they want
to bring people back. You're bringing AI to customer service.
How's that going? And how much do you have to
rely on people's stuff?
Speaker 14 (37:45):
We still have to rely a lot on people. I
think it's going incredibly well. We launched a customer service
agent in the United States to all English speaking users,
where now if you need help, you can reach out
to an AI customer service agent.
Speaker 6 (37:57):
It's a front line.
Speaker 14 (37:58):
It's been trained on, you know, hundreds of millions of
customer trips to be able to be twenty four to
seven and be an escalation point to humans.
Speaker 6 (38:07):
Or be able to answer the question themselves.
Speaker 14 (38:09):
But I think the key lesson here is you don't
want to rush into a trend. I think that people
got really really excited AI be invitably thought it's the future.
It's going to do all these tasks in the future.
All that's true, but you can't skip steps and people
want things to work, and so, you know, we didn't
want it to be an AI lab. We wanted to
be something people could trust, and so we've been very,
very careful about focusing on solving real problems responsibly with
(38:32):
a model that doesn't hallucinate.
Speaker 6 (38:33):
And I think that's what we're.
Speaker 3 (38:34):
Doing at BNBC, you know, and cal co founder Brian Chess,
it's great to have you back on Bloomberg Technology.
Speaker 5 (38:41):
Thank you, Thank you very much.
Speaker 2 (38:42):
A new weekly podcast from Bloomberg launch just today, covering
business stories that are relevant to absolutely everybody and as
that retitled Everyone's Business. The hosts Bloomberg's Max Chafkin Stacey
Venexsmith join us.
Speaker 4 (38:54):
Now, Max, what's the USP here?
Speaker 2 (38:56):
How are you going to set yourself differently from all
the other business conversations.
Speaker 15 (39:00):
Well, you know, there's so much going on in the
economy right now. You know, you tear offf news changing
every day obviously AI.
Speaker 5 (39:07):
We heard that in the last conversation.
Speaker 15 (39:09):
And all this stuff affects, you know, the markets, it
affects businesses and the decisions they make, but also affects
like the real decisions that regular people make, and that's
the connection we're trying to make. We're trying to bring
some sort of smart analysis and basically help people figure
out what to do with their money, figure out what
decisions to make, and figure out how to make sense
of the world.
Speaker 3 (39:30):
Stacey, as a journalist covering technology, sometimes the written words
not alough, and that is no more true than when
I'm confronted with the transatlantic issue of the banana pudding.
Please explain the detail to audience how this podcast will
crack that well.
Speaker 16 (39:48):
Crack might be the key word there. Obviously, inflation has
been a huge issue of all over the world, in
the US and of course in the UK as well.
But eggs, of course are a big concern here in
the US, the price of eggs, they were down a
little bit. We got some pretty good inflation news this week.
But I think a lot goes into a banana pudding.
In fact, there's labor, there's overhead. If you're a business
(40:12):
making banana pudding, you are dealing with all of the
economic forces that are affecting us all every day. And
so I think that's the kind of thing we're going
to be looking into through the lens of banana pudding.
I think you can see the whole economy. I would
argue a lens.
Speaker 2 (40:27):
A beautiful, delicious lens into the old economy. I mean,
let's talk sports. Look, New York is on tend to
Hoox for kating tonight. We're all worried about NJ transport,
but I'm interested more broadly, Max and like how the
business of sports is going to fold into this, how
this becomes entertainment At the same.
Speaker 15 (40:43):
Time, Yes, we had a great conversation for the episode
that hit today, which you can get anywhere you get
your podcasts, with Randall Williams, who's a Bloomberg Sports reporter
BusinessWeek contributor.
Speaker 5 (40:53):
It it's all about.
Speaker 15 (40:53):
The rising valuations of teams and how that's changing how
teams operate. You know, we're getting a new breed of
sports owners. The sort of prototypical sports owner who would
sort of a rich guy who's into the team is
being replaced by these institutional investors, private equity guys, which,
of course I think it's exciting if you own a
(41:14):
sports team and you want to you know, make more money,
but it's also you know, from the fans point of view,
it could be kind of troubling because obviously private equity
has a somewhat checker of reputation when it comes to
coming into businesses.
Speaker 3 (41:26):
Bloomberg's Max Chefkin and Stacy Vennick Smith their new podcast,
Everybody's Business is out today.
Speaker 5 (41:33):
Check it out, Caroline.
Speaker 3 (41:34):
That does it for this edition of the television show
Bloomberg Technology.
Speaker 2 (41:39):
We also have a podcast, so keep your pictures coming
for the podcast on the TV show. You can find
out on the terminal as well as online on Apple, Spotify,
and iHeart and go back over some of our CEO
conversations today because they're global, they're important, and they discuss
things like the impact of inflation and I still are
desire to go traveling and indeed to get our food
delivered from New York from San Francisco.
Speaker 4 (41:59):
There's that technology
From the heart of where innovation, money and power collide
in Silicon Valley and beyond. This is Bloomberg Technology with
Caroline Hyde and Ed Ludlow.
Speaker 2 (00:27):
Live from New York and San Francisco. This is Bloomberg
Technology coming up. President Trump says global trade deals and
tariff rates are coming in weeks as he ends his
technology tour of the Middle East.
Speaker 3 (00:38):
Plus M and A and focus in the world of
US cable providers, with Charter agreeing to combined with Cox
in a deal valued at about thirty four point five
billion dollars.
Speaker 2 (00:47):
And we're joined by Airbnb CEO Brian Cheski after the
company unveils an app overhaul, a new services offering, and
a relaunched experiences product. But first we check in on
these markets, which are having a stellar We are up
more than six percent on the NASAQ one hundred over
the last five trading days. We call in terms of
that investor enthusiasm on the day, but look, consumer sentiment
(01:09):
ugly ed the second.
Speaker 4 (01:10):
Worst on record. We've had some really painful readings across the.
Speaker 2 (01:13):
Economy, but maybe inflation not as bad as we expected,
and it is risk one when it comes to tech.
Speaker 3 (01:19):
We had technology earnings overnight, I go to Applied Materials.
This is America's biggest chip making or chip equipment maker,
and you can see the stocks down negatively current period
week outlook, concern about trade, particularly with China. There's a
bigger conversation to be had here about the reality of
what's happening in investment going forward despite all the hype
(01:40):
with chips. Speaking of hype, We're going to go out
to the Middle East soon, right, And the big beneficiaries
of President Trump's visit are on this screen, principally in video.
Video is up for a fourth straight week, a four
straight weekly gain, up fifteen percent on the week, and
I'm sure Amhmrie is going to talk about how Jensen
was by the President's side every step.
Speaker 5 (02:01):
Of the way.
Speaker 3 (02:01):
Comparing contrast with Apple, it's still up six percent despite
the negative headlines, but it's rebounding from last week where
it's sort of declined.
Speaker 2 (02:08):
Character extraordinary amount of market capitalization added what more than
four hundred billion dollars to in video alone over the
last five trading days. And that's as President Trump said
though that he actually will be looking back at tariff
rates for US trading partners d quote over the next
two to three weeks, saying his administration actually lacks the
capacity to negotiate the deals with all of its trading partners.
(02:29):
Let's just run through the week that was with Trump's
visit in the Middle East. Bloomberg's amorihood and joins US
now from Abu Dhabi, and he's taken off.
Speaker 4 (02:37):
He's jetting home.
Speaker 2 (02:38):
But he leaves a lot of tech optimism in his weight,
but a lot of anxiety when it comes to tariffs
still to deal with.
Speaker 6 (02:47):
Yeah.
Speaker 7 (02:47):
Absolutely, And the President talked about those tariffs today, talked
about the fact that there's so many countries that are
lining up and want to negotiate with the administration, but
right now they're focused on the main trading partner of
the European Union in Japan India when it comes to
these other countries. And the President has said this in
the past, most recently last week I was with him
in the Oval office and he talked about this, said,
they're just going to set the rate for these countries
(03:09):
and let them know where the new rate is. Remember
Liberation Day, April second. That's how the administration want to
frame it. Very high teriff rates for a number of countries,
they put all that on pause, so potentially in July,
some of these countries they haven't been able to have
these bespoke agreements with, they're just going to set a
new rate. So the President is just supposing a lot
(03:31):
of issues at once. He's still facing some pushback when
it comes to countries and investors, when it comes to
the tariff policy and the fact that trade deals can
take years, with the fact that he's inking deals across
the entire Middle East between riod Doha and Abu Dhabi
and Caroline ed, you're one hundred percent right. Tech was
(03:52):
really the star of this entire trip, specifically Nvidia and
Jensen Wang. And when I spoke to him briefly in
Riatto's during this honorary dinner for the President with the
Crown Prince Mohammed ben Salman, I asked him about the
diffusion role. I said, you must be happy they rescinded,
and he said, rescinded, canceled, and because of that he
(04:12):
is going to be able to get more of those
advanced chips into the Middle East. The President name checked
him and Riyad saying, my friend Jensen Wang is here,
and then.
Speaker 4 (04:20):
A remarkable photo.
Speaker 7 (04:22):
Really yesterday in Abu Dhabi, as Commerce Secretary Howard Lutnik
was signing this AI partnership between the United States and
Abu Dhabi.
Speaker 4 (04:31):
That would mean building.
Speaker 7 (04:33):
The biggest AI data center outside of the United States
right here in Abu Dhabi.
Speaker 4 (04:37):
Look at that photo.
Speaker 7 (04:38):
He is standing in between President Trump and Sheik Muhammad Benzayad.
Speaker 4 (04:43):
It's Jensen Wang.
Speaker 7 (04:44):
He's been everywhere on this trip and you can kind
of see why.
Speaker 3 (04:48):
Bloom E exam Marie Horden with everything from the ground
and a long week on of Middle East tour.
Speaker 5 (04:52):
Thank you very much.
Speaker 3 (04:54):
Let's get more on what markets think about President Trump's
aideals and what that means for technology Epek. This Shia
is Swiss quote senior analyst, and I showed that chart
at the top of the show, right, Nvidia, Amazon, and
Apple over the course of five days as an investor
in those names in that sector. What's been the net
(05:17):
result for you of everything that's happened this week.
Speaker 8 (05:21):
Well, the big technology companies have had a very difficult
quarter with the Chinese AI competition coming up, and the
trade at tensions and the deals, the Middle East visit
and these deals are coming right at the best imaginable
time so far this year. First of all, we have
been seeing companies delaying their AI investment plans due to
(05:44):
tariff uncertainties, and there are a lot of questioning regarding
how much of these investments could still materialize given the
gloomy economic outlook. And the deals just come at the
very best time and from the well the richest countries.
Speaker 6 (05:59):
In the world.
Speaker 8 (06:00):
So there is a reason in media john to fifteen
percent since Donald Trump's Middle East visit. We think that
the NVIDIA deals with the Saudi and Qatar and abudeb
is just going to fill in the gap at a
very very critical time for the chip industry. There is
one thing, though, we start hearing that at the White
(06:20):
House some politicians, some members are not fully comfortable with
the idea of selling chips to the Middle East due
to the national security reasons. But that's a story to
be followed for now. Though the optimism has strong legs.
Speaker 5 (06:35):
I want to go there.
Speaker 3 (06:36):
Am Marie talked about the sort of significance of the
images we showed, which was Jensen Wong standing between the
President of the United States and his UAE counterparts. But
actually there are deep concerns that the rescinding of the
diffusion rule, those are those pictures now? Good job to
the team in New York does not at all answer
the question about China. We don't know anything about rules
(06:59):
for China. Has the market yet to price that in?
Speaker 6 (07:03):
Well?
Speaker 8 (07:04):
I think that most of the Chinese trade war has
already been posced in and investors have somehow came to
the conclusion that okay, China will well gently get out
of this picture and has a slower exposure to well
to the Western world and vice versa. So there is
now the thinking emerging that because China is willing to
(07:25):
gain its independence and it looks like it could get
there with their own means, that's going to be the
future for the Chinese companies. There is this thinking that
China is willing to gain its independence and if they
do so, actually that's going to be a positive for
Nvidia because the trade tensions will not necessarily will hit
them as hard as they have been hit over the past.
Speaker 4 (07:45):
Couple of months.
Speaker 8 (07:46):
This being said, while China's still remains a big chunk
of the Nvidia's revenue, So before we get there, we
still have some bomb Heerio to go.
Speaker 2 (07:53):
If it broadened it out because in video, yes crushes
it on the week up fifteen more than four hundred
billion dollars in market cap added, it's again a three
trillion dollar company. Are the legs left to run with?
In videos? Up to the right and indeed tech more broadly, Well.
Speaker 8 (08:09):
I think that Nvidia still has earnings to be announced,
and we expect that the earnings are going to be
strong enough to keep the optimism going. We shouldn't forget
that Nvidia had a very difficult quarter and we saw
a very significant fall in a strape price and also
in its validation.
Speaker 7 (08:25):
And right now with the.
Speaker 8 (08:26):
Arrival of the good news and big lions that actually
counter with the idea and the worries that the big
technology clients could be finding their ways out of Nvidia
is obviously a very positive view, and we think that
Nvidia does have potential to extend and to well extend
is rarely on the Middle East deals. If obviously the
Middle Ist deals materialized and there is not a problem
(08:49):
barrier in the future.
Speaker 4 (08:51):
Yeah, it's so definitely.
Speaker 8 (08:53):
Yes, it has been a right positive for Nvidia thing.
Speaker 2 (08:56):
I mean, it's been an outright positive for many a
tech stock this week looking Alphabet more than nine percent
over the last five trading days.
Speaker 4 (09:03):
That's despite the ongoing worries that this is a company
that might be forced to break apart.
Speaker 2 (09:07):
Meta also investigation with its monopolistic as has been deemed
by the FTC monipolistic position. What do you think are
some of the risks that investors perhaps aren't tuning into
right now.
Speaker 8 (09:20):
Well, one of the other risks that we see because
we are in Europe, is that if.
Speaker 4 (09:23):
The trade negotiations don't go well with the.
Speaker 8 (09:25):
European Union, the European regulators will be going after companies
like Google and Facebook, big technology companies. They have been
very clear warning the United States about that. So I
think that one of the trade risks is on these
companies that have been spared so far because they are
offering digital services, and it was mostly the companies with
(09:46):
complex international supply chains like Nvidia, like Google, Apple that
have been very very hardly hit. We think that there
are still risks there that have maybe not been fully
priced in.
Speaker 4 (09:58):
Obviously, the risks.
Speaker 8 (09:59):
Are two sided, because there is always a chance that
the European Union and the US striker deal. But if
that's not a decase I think that Microsoft, Girl and
Facebook are also going to come under pressure.
Speaker 3 (10:10):
Eupe Cosko Deshkaya of Swiss Coat. Great to have you
back on the show. Thank you.
Speaker 5 (10:15):
Another news story I've been writing about this.
Speaker 3 (10:16):
Morning, Tesla is adding a long time Chipotle executive to
its board. Jack Harton, will join as a director a
member of the board's audit committee as of June one,
Tesla said in a filing. This comes as the Carmakers
grappling with forny questions over Elon Musk's compensation and its
strategic direction.
Speaker 2 (10:44):
Charter Communications, well, let's agree to combine with privately held
Cox Communications in a deal that would unite the two
of the biggest US cable providers.
Speaker 4 (10:51):
The transaction will.
Speaker 2 (10:52):
Value Cox at about thirty four and a half billion,
including debts, according to a statement Friday that actually confirmed
earlier Bloomberg News reports.
Speaker 4 (10:59):
Who that reporting, Michelle Davis was and she joins us.
Speaker 2 (11:02):
Now, Michelle's interesting that this is a fiercely competitive space.
Speaker 4 (11:06):
Does it just have to end in consolidation?
Speaker 9 (11:08):
That's basically what the Cox family is saying. I mean,
they have been owners of cable assets for seventy years,
and the fact that they're now saying okay, it's time
to combine means that that's how fierce it is. And
you know what's going on is cable companies have been
making their revenue from Internet, but everyone has Broadway ad
Internet these days. And at the same time, the phone
companies are getting into it and people are cutting the cord,
(11:29):
and so the idea is this is what they have
to do to survive.
Speaker 2 (11:33):
John Malone is the billionaire that's sort of behind some
of these deals. In fact, maybe he signaled this earlier
than the deal came about.
Speaker 5 (11:41):
Right.
Speaker 2 (11:41):
He had an invested Day saying, look, I want.
Speaker 4 (11:43):
To combine Charter with someone else. I need to be
able to make a deal here.
Speaker 9 (11:47):
Yeah, this is one of those perennial deals that John
Malone has wanted to do for more than ten years,
and it took time for it to get there. But
in December November, during the Liberty Media Investor Day, he said,
it's so competitive. The tech companies are allowed to just
roam the earth without limits, and why should cable companies
just be restricted to one part of the country. They
should be allowed. Charter, he said, should be allowed to
(12:09):
merge with Cox, Comcast or T Mobile, and I guess
they chose Cox.
Speaker 2 (12:15):
And what's interesting is that meanwhile, the T Mobiles, the
AT and t's of horizons are busy trying to do
wireless offerings and they're almost offering their.
Speaker 4 (12:22):
Services to tom cable providers.
Speaker 2 (12:25):
Is this therefore going to get through regulatory scrutiny because
it's just so fiercely competitive.
Speaker 4 (12:29):
So it's going to be.
Speaker 9 (12:30):
The big litmus test of the Trump administration to see
how it's received. The companies clearly believe that they have
a shot at getting it through the way the cable
industry is structured in the US means there's not any
overlap in terms of geographies that these companies play. And
I think part of why they're focusing on this competitive
element is because their argument is we need to do
this to survive.
Speaker 2 (12:51):
It's been great talking to Michelle Davis. We appreciate it. Meanwhile, Ed,
you're looking another key story.
Speaker 5 (12:57):
Yeah.
Speaker 3 (12:57):
Turning to Coinbase, the crypto platform disclosed it had suffered
from a hack that leaked sensitive customer data going as
far back as January, the revelation coming just three days
after Coinbase was added to the S and P five
hundred bluing Bosse Margie Murphy's here, let's go to the
basics and details of the hack. What were hackers able
(13:18):
to obtain, how did they do it, and what was
the kind of net effect for coinbase and coinbased customers.
Speaker 10 (13:25):
Right, so, back in January, the threat actor realized that
they could get access to some of Coinbase's contractors in
their customer support assistance teams, and essentially the threat actor
was bribing individual employees or contractors and saying I'll give
(13:46):
you cash if you give me the information on coinbased customers,
and that has been They have been giving a drip
feed through since January up until around this week when
Coinbase say it received an anonymous email saying, I'm the
person who's been bribing your customer support assistance. I have
(14:07):
this pool of information on some of the most valuable
customers you own. Give me twenty dollars at twenty dollars,
give me twenty million dollars.
Speaker 4 (14:17):
And I will delete that information.
Speaker 10 (14:20):
And this week Coinbase will yesterday disclosed that that had
been going on and that they refuse to pay the
ransom and they wanted to come public with it instead.
Speaker 3 (14:30):
That's right, if you're just tuning in, I mean Coinbase
shares are pretty buoyant, and Friday session they had fallen
by seven percent or so in Thursday session. The simple
question is what happens next?
Speaker 10 (14:44):
Right, So Coinbase is estimated that this is probably going
to cost them around four hundred million, And what they're
saying to customers is, look, they hacker didn't access your
account through us, but they got a lot of information
that they could very easily socially engineer you. So they've
been sending out emails to people they believe have been affected,
(15:05):
and they are saying, if you do suffer a loss
as a result of this data being leaked, we will
compensate you.
Speaker 3 (15:14):
Marg I'm sorry to interrupt you in your career covering
cybersecurity and.
Speaker 5 (15:20):
Hacks like this.
Speaker 3 (15:21):
Where does this rank in sort of corporate worlds?
Speaker 5 (15:28):
It's pretty bad.
Speaker 10 (15:30):
It's the way that the hackers can use this information
to target wealthy people. They are able to see the
balances in their coin based accounts, and they now have
very very detailed information on these individuals that they can
go and socially engineer them, not just to get into
their coin based accounts, but into other financial accounts that
(15:53):
they might own, and by social engineering. I mean calling
up and saying I'm a bank support assystem and when
the person questions, well, you know, how can you prove that?
Give me some information about my account, and they can say, well,
I have names, emails, balance, you know your last transactions.
It's all very convincing information. So I think in terms
(16:17):
of they may not have got an inter coin basis
systems per se and broken into their networks, but the
mushrooming effect this will have on people's personal data and
the potential impacts that could have on people in individuals
losing their money.
Speaker 5 (16:30):
Is a pretty big.
Speaker 3 (16:33):
Moodlo's Margie Murphy on a breaking and fast moving story,
Thank you very much. TikTok is willing to talk about
it's Brazil operations with the South American country's government, according
to an official. This follows a visit to China earlier
(16:54):
this week, when President Lula and the First Lady expressed
concerns over the potentially harmful the app may have on
children and women.
Speaker 2 (17:03):
Character let's just turn a rotation to other social media
players because meta ed share still lower. That's after The
Wall Street Journal reported that the company will delay the
release of its AI model, the latest one it's called
Behemoth for more Bloomberg, Riley Griffin can talk not only
about the AI models but also what's been happening with
the FTC.
Speaker 4 (17:19):
But I go first to Behemoth.
Speaker 2 (17:21):
How important is it that then perhaps not able to
make significant incremental improvements on the overall model.
Speaker 11 (17:28):
So this is Meta's biggest model. It's one that they
have pointed to as a landmark and said that is
better than chat gbt's comparable model, Claude's.
Speaker 4 (17:40):
They've topped a.
Speaker 11 (17:40):
Big game about Behemoth. The delays here are interesting. They
were supposed to release the model on April, according to
our colleagues at the Wall Street Journal, but it's now
looking like it'll be delayed to the far And the
point here that I think we need to take Carolina,
is that each incremental development is going to become increasingly
(18:01):
harder to achieve. Some of the big advancements that we
saw earlier on twenty twenty two, twenty twenty three through
now it's becoming harder and harder to advance these models
in ways that are worth the releasable milestone.
Speaker 3 (18:15):
Well, it's a difficult undertaking, right, But did the report
say specifically why it's delayed or who made the call.
Speaker 11 (18:22):
The report said that internally, senior executives at the company
are disappointed with the team and the milestones that they're
reaching so far. It didn't explain exactly why it was
being delayed, so we're going to have to keep watching
this story unfold.
Speaker 4 (18:37):
And Meta at this time is not commenting.
Speaker 2 (18:39):
I mean, it is interesting, isn't it that all of
this comes at a time with Meta that not only
are they trying to push the envelope and general to AI,
but they're also under a lot of stress. It would
see you in the courts trying to say, look, Instagram
and overall WhatsApp are not monopolistic. There are so many
others out there competing, But the FDC thinks.
Speaker 4 (18:59):
That they're on to snap no doubt.
Speaker 11 (19:01):
And AI, as you mentioned, here is not just a
story about the chatbots and the models, but it's about
how they're integrated into the applications themselves. So the future
of Instagram, the future of WhatsApp has a lot to
do with the capabilities here.
Speaker 3 (19:15):
Bloombo's Riley Griffin, thank you very much. A big take.
Microsoft co pilot AI is gaining traction among its customers,
but the company's investment and relationship with open Ai could
complicate things for CEO Setia Nadella. It's the subject of
today's Big Take bloombosostin Car wrote it and joins us
now in part this is informed with time you spent
(19:36):
with missing Nodella. Right, but the Copilot launch wasn't smooth,
wasn't great. They want to put time into it. They
have to manage their investment and relationship with open Ai,
which has a competing set of products and offerings.
Speaker 5 (19:51):
Yeah, that's correct.
Speaker 12 (19:52):
I mean I would just you know, turn to your
viewers out there and ask have you used Copilot or
has it more likely that you're using chat Ept if
not even pay for chatchipt subscription. And that's the big
challenge for Microsoft right now. You know, open Ai really
was successful thanks to Microsoft It's thirteen point seventy five
billion dollar investment over the years in the company, as
(20:12):
well as all the money it poured into GPUs and
data centers to help with that back end processing. The
issue is that that sort of gave open Ai headstart,
but Microsoft has had to play catch up on its
own app offerings like Copilot, which is both available in
the enterprise for customers using Word and Excel, as well
as a standalone consumer version which you can get on
Windows Max and your iPhone. And it's just really been
(20:35):
a challenge for Microsoft to show why it's different because
a lot of people at the beginning just saw it
as a knockoff of Chatchipt with a different brand name,
because it was still tapping into open AIS models underneath.
And that's what Sachnadela is trying to differentiate now, building
up Microsoft's own models, trying to differentiate their product through
integrations with Microsoft software.
Speaker 2 (20:54):
You've got Mustafis Suleiman, who we all know well on
the consumer side. Can you introduce us to a new
executive that Feathers might not have heard or so much.
Speaker 4 (21:01):
Asha Shama really leading the.
Speaker 2 (21:03):
Charge here from the company's AI platform perspective.
Speaker 4 (21:07):
What does she bring?
Speaker 12 (21:08):
Yeah, I mean, I think what's so fascinating here. She's
building up a product called Azure AI Foundry, which is
their sort of AI marketplace that's available on Microsoft's leading
cloud platform. And I think, you know, a lot of
people have this grand misunderstanding about Microsoft that it's really
wetted to Open AI, when in fact that a model
marketplace offers about nineteen hundred very varied models, including internal
(21:31):
Microsoft models as well as external third party ones like Meta,
which you were just talking about a moment ago. So
Microsoft is and Sachandela are really hedging their bets on.
Speaker 5 (21:42):
Open Ai.
Speaker 12 (21:43):
So you can rent open Ai models through Azure Ai
Foundry with something Asha is leading, but you can also
get access to cohere, Mistral, Meta, as well as more
recently Deep Seeks models that are adding to the platform.
Speaker 2 (21:54):
Austin Khr It's a brilliant read Go get it on
BusinessWeek along and very deep and thorough one on Microsoft
as it stands. Welcome back to Blueberg Technology. I'm Caroline
Head in New York and.
Speaker 5 (22:12):
I met Lodlow in San Francisco.
Speaker 3 (22:13):
So, like in the moment this Friday, when we think
about at the index level in markets, tech's kind of
taking a time out with flat on the Nazak one hundred,
but it has been a strong gain on a weekly basis.
We're up about six percent on the Nazak one hundred.
Speaker 5 (22:26):
A lot of.
Speaker 3 (22:27):
What's driven that gain over the course of the week
has been the technology companies that have been beneficiaries of
President Trump's visit to the Middle East, the AI infrastructure deals.
You're in videos, your Dell's, your Amazons, for example.
Speaker 5 (22:41):
But the story this Friday is a little.
Speaker 3 (22:43):
Bit economic, Caro, and we'll get to it later in
the program. A gauge of US consumer sentiment was worrying,
I think to the markets. But again from a headline perspective,
there's been a fire hose Monday through Thursday, and I
kind of feel like in the world of tech, at
least we're taking a time out.
Speaker 2 (22:58):
We are indeed maybe a whores, but there's no pause
in terms of deal making right now. And let's just
go to food delivery company s ED. They have been
hungry for consolidation, using deals to enter new markets and new.
Speaker 4 (23:09):
Areas of lifestyle.
Speaker 2 (23:10):
Basically this all includes Process which just announced, of course
relatively recently, to buy just Deep Takeaway for four point
three billion dollars. There's new strategic partnership between Uber and
Processes Brazil portfolio company I Food, and not to mention
the fact that they're getting into travel as well, with
a completed deal just announced overnight Fabricio Bluisy is with
US CEO of Process Group.
Speaker 4 (23:30):
You are such a global company, I know You've just.
Speaker 2 (23:32):
Been deemed Brazil's Man of the Year, so your voice
is a little bit horse.
Speaker 13 (23:35):
Congrats, no caroline for you again.
Speaker 4 (23:39):
Well, congrats also on all this deal making.
Speaker 2 (23:41):
But I'm really interested is to let's just go to
say the strategic partnership with Uber in Brazil. Why decide
that's a partnership and that's not m and A to
add on delivery services and mobility.
Speaker 6 (23:54):
We are super.
Speaker 13 (23:54):
Excited about for the leivers. You know, we just announced
two months ago the four and a half Beati an
acquisition of just It's takeaway or waiting for the confirmation
of this exhibition. But Latin America is very important for
our strategy. Latin America ecnsistem there, so we have not
only eyefood but our payment business, but our event business.
We just close it today. Our travel transaction there it
(24:17):
was approved today. So we just bought Despegar for close
to Tribulio Europe. But we don't have our hailing offer
and what we did was a strategic partnership with Uber,
so Uber do not have the food delivery. Now Uber
will have Eyefood inside Uber and we will have right
Hailey inside Eyefoods. We think we can serve much better
(24:37):
our customers, not only our customers, but Uber customers. Working together.
I think that's the future. Offer more to our users.
It's a partnership and we are very excited about that
to work closely with Uber.
Speaker 5 (24:50):
Let's talk about the mechanics of the deal. You're a
deal maker.
Speaker 3 (24:53):
What is the sort of regulatory path been like in
that country, what's it like doing business in that region,
and so the basics of our audience. You're going to
get that deal closed and done right.
Speaker 13 (25:05):
We are very excited that should they A few hours ago,
we just got our online travel agency deal closes. This
is Despegar, So we acquired Despegar. It was approved today
by the regulators. You're very excited about that. The Uber
deal is not a merge, it's a commercial partnership. We
are going to offer to our customers access to Uber,
(25:27):
their customers access to ie Food. So we are not
waiting for reglatory approval for this deal. We can move fast.
We can offer better service to our customers. That's the idea.
Speaker 2 (25:39):
And I'll just jump in now because I think what's
interesting is how you align data sharing with Uber. How
do you decide what revenue each one takes. What is
the deal, the intricacies of the deal here that benefits
both of you because I know you're focused on data,
because that's the AI win, right.
Speaker 5 (25:54):
Yes, perfect.
Speaker 13 (25:56):
This deal specifically is about offering more services to our customer.
So we're not sharing revenue. We are going to keep
the food deliver revenue. We keep the right haling revenue.
What we do is to offer to all customers in
Brazil food delivery and rite healing together. That's the focus
of the deal. But last time I came here to
talk to you in London, actually talk a lot about
(26:16):
AI and that's the biggest focus of process. I just
released a letter this week talking about we are doing
super well. We are growing a lot. We are more
than ten percent better than the forecasts I gave. But
besides that, I'm more excited about how fast we are
moving in AI. We announced our large Commerce model that
is a very big AI model that constantly dates all
(26:38):
transactional information in all processes to train a model to
serve better our customers. So we are innovating O lots,
using open aio four and deep secret, all kinds of
new models to really make a step forward in how
AI advanced on e commerce, so data is a big
priority for us. We are investing a lot on that
and we are just starting to release the good results
(27:00):
of that.
Speaker 2 (27:01):
And what you call yourself is sort of lifestyle e commerce,
So sorry, what else do you bolt on? Look, we've
got the food delivery, you've got the mobility side, you've
got the travel with this new travel operated that you've been.
Speaker 13 (27:10):
Buying payment, and I think it's good enough for now,
So let's me deliver lots of results on that. And
now we'll put some adjacents before. But as you can see,
food delivery is very important because food delivery is a
very high frequency business. People buy sometimes five, ten, twenty
times per week. So on top of food delivery, we
are putting many other adjacentcies as payments, as travel, as events.
(27:34):
But why I'm very excited now pros now is much
more focused in three ecosystems. The first ecosystem of our
focus is Latin America, so you have all these business,
all these offers working together in Latin America. Our second
focus is India and we have also Swiggy that is
a food deliver business in Ninjia. On top of that, payments,
pay you and Mashe and Urban Company other companies in India.
(27:57):
So you're doing the same ecosistent approach in India. In
our third and I'm very excited about that. Focus is Europe.
I think Europe needs big tech in Europe. Now, we
just bought just each Takeaway. As I told you, next
least time, we have eighteen billion dollars to invest. We
want to invest a lot in Europe and on top
of Just Takeaway as soon as our deal is approved,
(28:20):
so we are waiting for Europe to approve that. We
are going to be able to invest ten times more
in AI in Europe.
Speaker 6 (28:25):
That's my big goal.
Speaker 3 (28:27):
So, Fabrizia, you took us around the world there on
a jet plane. But with the just Eat deal, there's
a shareholder complaint, right They basically think twenty euros and
thirty cents is less than half what you should be paying.
Speaker 5 (28:40):
What's the latest on that? Do you see it changing?
Speaker 13 (28:44):
I we have very confident this is a very good
offer for both sides. We are paying around fifty percent
a little more fifty five or sixty percent premium in
the in their previous price, so we have very confident
this is a great offer. We got very good reception
for most of the shareholders. Our expectations to close. We
(29:05):
have a strong expectation to close at the offer, and
we seek it's an amazing offer to the shareholders.
Speaker 3 (29:12):
What are the regions next? Which country are going to
surprise us with with your next deal? We just have
ten seconds.
Speaker 13 (29:18):
Late in America, Inja, in Europe, the biggest tech company
outside US and China. Let me surprise you get into
two hundred billion dollars very fast and come here to
talk to about our next steps.
Speaker 5 (29:30):
Fabt Blue CCO process great. Great to have you back
on the show.
Speaker 2 (29:34):
We welcome to our radio and TV audiences worldwide. Now
Airbnb out with a redesigned app that puts a great
emphasis on services, on one of our kind experiences.
Speaker 4 (29:43):
But this is us.
Speaker 2 (29:44):
Of course, anxiety remains about consumer sentiment, about our desire
to travel abroad. Right now, let's get through all of
that with Airbnb's plans. We're John by CEO Brian Chesky,
Brian welcome and AIRBMB more than a home. You want
to be sort of an Airbnb for the world and
for services. Tell us the revenue drivers here. Why is
more experiences, more services going to lead to a bigger
(30:06):
business and investable opportunity.
Speaker 14 (30:08):
Well, I mean as big as the VERBMB is, and
we do around ninety billion dollars a year in bookings.
There's so much greater opportunity for people to monetize the
biggest asset in their life.
Speaker 6 (30:18):
And it's not their home, it's their time.
Speaker 14 (30:20):
And so what if all the people's skills, all the
people's passion, their expertise could be monetized. A huge percent
of the jobs in the United States around the world are
becoming essentially services jobs. And there is no Amazon for services.
You know, people say Amazon's the everything store. It's kind
of the everything in a cardboard box store. But there's
this whole other world. It requires trusts, it requires two
(30:42):
people to have an exchange between one another. I think
that's where Airbingby's core competency is. What we built is
an extensible platform that's not limited to homes.
Speaker 2 (30:51):
What's interesting is the chefs, the massages, the other key
at services that you're offering do have to be vetted?
Speaker 4 (30:56):
Yes, that's when you get the scale.
Speaker 2 (30:58):
How are you going to scale that If you're doing
this on a person to person basis, how much does
mL then take over?
Speaker 6 (31:03):
Yeah?
Speaker 14 (31:04):
I mean, I mean a lot of what we do,
and I think a lot of what everyone in technology
does is you start things by hand, You learn the rules,
and you train the technology, and the technology takes over
either does it or it augments the people.
Speaker 6 (31:15):
And that's exactly what it was like here.
Speaker 14 (31:17):
We start very much by hand, and then we build
tools to automate the task that people are doing.
Speaker 3 (31:22):
Brian, I started using Airbnb in the UK around twenty
ten eleven when I went to college, right, and that was.
Speaker 5 (31:30):
Before Uber even launched in the UK.
Speaker 3 (31:33):
And when I think about the development of platforms and
app technologies like yours, the one point of difference than
Airbnb has versus an Uber is that you don't yet
have advertising, whereas you look at Uber's ad growth now
for them.
Speaker 5 (31:47):
On the investor side, it's a really big thing. How
do you think about that?
Speaker 6 (31:51):
I think it's a huge opportunity.
Speaker 14 (31:52):
You know, one of the frameworks I really like around
how to invest is you want to invest in the
most perishable opportunit unities first, and so we think a
really perishial opportunity is you know, launching services and experiences.
The timing is right. We think advertising is a huge
opportunity for us. It's an inevitable opportunity for us, but
(32:14):
we don't think it's the most parishal opportunity, so it
hasn't been something we've prioritized in our near term roadmap.
I also think it's really good to first extend our
platform from homes to services, experiences in beyond, so when
we build things, we can build them as a horizontal
platform inevitable.
Speaker 5 (32:31):
That's that's really interesting.
Speaker 3 (32:33):
You've got a lot of credit this week for the
relaunch of the app and its ability to give you
some long term growth. I'd just be grateful to hear
how you think it will drive long term growth. I
think from the streets perspective that's more about revenue growth
and profit, but maybe scale of the platform as well.
Speaker 6 (32:50):
I think there's three things.
Speaker 14 (32:52):
Number One, there's a whole bunch of people who don't
book airbnbs because they don't come with services.
Speaker 6 (32:57):
They go to hotels.
Speaker 14 (32:58):
So what if you get after all the hotel services
of a hotel and more in airbnb. So that's one
way we actually could grow is to get a lot
more customers. The second way we can grow is a
lot of people use Airbnb, but the only book one
thing on the reservation home, so we can essentially get
a greater share of wall on the trip. The third
and the longest term opportunity is local demand. We think
(33:19):
a lot of these services and experiences that were initially
building out for travel consumers are eventually going to be
things that are going to want a book in your
own city, and that is an even significantly greater market.
Speaker 6 (33:28):
So there's really these three types of horizons.
Speaker 2 (33:32):
Coast playing with Megandee Stallion, learning volleyball within Olympian in Rio.
Speaker 4 (33:37):
How did you get these one off experiences? I mean,
is this making some phone calls?
Speaker 6 (33:40):
Yeah?
Speaker 14 (33:40):
I mean like, well, a year ago we launched icons.
We're shared these extraordinary experiences hosted by the biggest names
in culture. We had, you know, we have made the
uphouse float in the sky, and we did all these
really cool experiences, and then we started thinking to ourselves,
how do we bring that magic to experiences?
Speaker 6 (33:55):
And we built this.
Speaker 14 (33:56):
Network of really interesting celebrities and global icons. And one
of the that we found is they a lot of
them heard about what we're doing. They reached out to us.
I think a lot of these global celebrities want to
connect direct with their fans. They don't just want to
have a parasocial relationship on social media. And I think
the more we talk about AI, the more we start
to realize that we are accelerating our life living in
(34:18):
a digital realm. We're spending more and more time on devices,
and we want to be the kind of company they're
getting people off devices into the real world just as
a balance, and I think that could be a very
exciting proposition for the future.
Speaker 2 (34:28):
As you can imagine, this show's been talking about AI
relentlessly for the last three years, but we took a
pause started talking about taris and the economy relentlessly. You said,
now is the perfect moment to be launching these services
and experiences. Why in this environment where you saw consumer
sentiment today is woefully low.
Speaker 14 (34:45):
I mean, well number one were reported really really good
growth within travel, So I think people are still traveling,
and I think when the consumer sentiment is and steady,
they still want to travel, but they often want to
find more affordable options.
Speaker 6 (34:58):
Airbeanbe's a great way to do.
Speaker 14 (35:00):
But beyond that, like this is a very long term
bet that we're making over the next five years, and
I think this will endure across any kind of economy.
Speaker 6 (35:08):
It's just good to remind people.
Speaker 14 (35:09):
Everybody started during the great recession of two thousand and eight,
and so I think a lot of the great businesses
are starting during you know, kind of a weekend economy.
Speaker 3 (35:18):
Brian, you're pivoting to founder mode, right, Yeah, how's that
going to help Airbnb navigate the world that it's in
right now?
Speaker 14 (35:26):
I think founder mode basically just means like running a
large company with the hands on approach, where you're in
the details, your leaders in the details, and everyone's rowing
in the same direction like a startup. I think those
principles are more important now than ever with this new
technological revolution that's in front of us. You need people
(35:47):
that are able to basically have their hands on the
steering wheel and not be you know, in essentially like
a self driving car, which is you know how more
professional managers typically run things. So I think this is
the perfect time to lean into the future, to put
the pedal of the metal, put your hand on the
steering wheel, and really drive transformation. And I think a
lot of the great companies in history have been led
(36:08):
that way.
Speaker 3 (36:09):
With that in mind, Airbnb, the technology company, what's its
call competency.
Speaker 6 (36:15):
What are your.
Speaker 3 (36:16):
People really good at that other companies are not.
Speaker 14 (36:19):
I think a few things all probably a few, but
I'll highlight just two on the right now. The first
is our application. I think we have one of the
most beautifully well designed and build apps in the world.
We're able to show it is incredibly intuitive. I know
we I believe we were one of the best design
teams in the world. So we have really great applications,
and so take AI. There's a lot of development on
(36:42):
the application, the on the large language model layer, but
the applications haven't seen a lot of development. If you
pick up your phone, almost every app looks exactly like
it did before Generator of AI came on the scene.
Speaker 6 (36:53):
So that's the first thing.
Speaker 14 (36:55):
The second is probably even more important the offline world.
Speaker 6 (36:59):
We're really good at building apps, but I think we're even.
Speaker 14 (37:01):
Better at designing this system of trust between two strangers
to live together. I mean, nearly four million people a
day live together in Airbnb and nearly every country in
the world.
Speaker 6 (37:11):
Think about all the ways.
Speaker 14 (37:12):
You need to keep people safe, handle their issues, match
supply and demand, facilitate money, you know, make sure they're
having great experiences. There's so much more the offline world
the Airbnb. When people seebnb, they see an app, and
the app is just to scratch the service of our community.
Speaker 4 (37:29):
I love that you're talking online and offline.
Speaker 2 (37:30):
Briefly when you're thinking about Karna, having to decide that
actually all the AI focus has to be unwound a
little bit. Customer service is not working as they want
to bring people back. You're bringing AI to customer service.
How's that going? And how much do you have to
rely on people's stuff?
Speaker 14 (37:45):
We still have to rely a lot on people. I
think it's going incredibly well. We launched a customer service
agent in the United States to all English speaking users,
where now if you need help, you can reach out
to an AI customer service agent.
Speaker 6 (37:57):
It's a front line.
Speaker 14 (37:58):
It's been trained on, you know, hundreds of millions of
customer trips to be able to be twenty four to
seven and be an escalation point to humans.
Speaker 6 (38:07):
Or be able to answer the question themselves.
Speaker 14 (38:09):
But I think the key lesson here is you don't
want to rush into a trend. I think that people
got really really excited AI be invitably thought it's the future.
It's going to do all these tasks in the future.
All that's true, but you can't skip steps and people
want things to work, and so, you know, we didn't
want it to be an AI lab. We wanted to
be something people could trust, and so we've been very,
very careful about focusing on solving real problems responsibly with
(38:32):
a model that doesn't hallucinate.
Speaker 6 (38:33):
And I think that's what we're.
Speaker 3 (38:34):
Doing at BNBC, you know, and cal co founder Brian Chess,
it's great to have you back on Bloomberg Technology.
Speaker 5 (38:41):
Thank you, Thank you very much.
Speaker 2 (38:42):
A new weekly podcast from Bloomberg launch just today, covering
business stories that are relevant to absolutely everybody and as
that retitled Everyone's Business. The hosts Bloomberg's Max Chafkin Stacey
Venexsmith join us.
Speaker 4 (38:54):
Now, Max, what's the USP here?
Speaker 2 (38:56):
How are you going to set yourself differently from all
the other business conversations.
Speaker 15 (39:00):
Well, you know, there's so much going on in the
economy right now. You know, you tear offf news changing
every day obviously AI.
Speaker 5 (39:07):
We heard that in the last conversation.
Speaker 15 (39:09):
And all this stuff affects, you know, the markets, it
affects businesses and the decisions they make, but also affects
like the real decisions that regular people make, and that's
the connection we're trying to make. We're trying to bring
some sort of smart analysis and basically help people figure
out what to do with their money, figure out what
decisions to make, and figure out how to make sense
of the world.
Speaker 3 (39:30):
Stacey, as a journalist covering technology, sometimes the written words
not alough, and that is no more true than when
I'm confronted with the transatlantic issue of the banana pudding.
Please explain the detail to audience how this podcast will
crack that well.
Speaker 16 (39:48):
Crack might be the key word there. Obviously, inflation has
been a huge issue of all over the world, in
the US and of course in the UK as well.
But eggs, of course are a big concern here in
the US, the price of eggs, they were down a
little bit. We got some pretty good inflation news this week.
But I think a lot goes into a banana pudding.
In fact, there's labor, there's overhead. If you're a business
(40:12):
making banana pudding, you are dealing with all of the
economic forces that are affecting us all every day. And
so I think that's the kind of thing we're going
to be looking into through the lens of banana pudding.
I think you can see the whole economy. I would
argue a lens.
Speaker 2 (40:27):
A beautiful, delicious lens into the old economy. I mean,
let's talk sports. Look, New York is on tend to
Hoox for kating tonight. We're all worried about NJ transport,
but I'm interested more broadly, Max and like how the
business of sports is going to fold into this, how
this becomes entertainment At the same.
Speaker 15 (40:43):
Time, Yes, we had a great conversation for the episode
that hit today, which you can get anywhere you get
your podcasts, with Randall Williams, who's a Bloomberg Sports reporter
BusinessWeek contributor.
Speaker 5 (40:53):
It it's all about.
Speaker 15 (40:53):
The rising valuations of teams and how that's changing how
teams operate. You know, we're getting a new breed of
sports owners. The sort of prototypical sports owner who would
sort of a rich guy who's into the team is
being replaced by these institutional investors, private equity guys, which,
of course I think it's exciting if you own a
(41:14):
sports team and you want to you know, make more money,
but it's also you know, from the fans point of view,
it could be kind of troubling because obviously private equity
has a somewhat checker of reputation when it comes to
coming into businesses.
Speaker 3 (41:26):
Bloomberg's Max Chefkin and Stacy Vennick Smith their new podcast,
Everybody's Business is out today.
Speaker 5 (41:33):
Check it out, Caroline.
Speaker 3 (41:34):
That does it for this edition of the television show
Bloomberg Technology.
Speaker 2 (41:39):
We also have a podcast, so keep your pictures coming
for the podcast on the TV show. You can find
out on the terminal as well as online on Apple, Spotify,
and iHeart and go back over some of our CEO
conversations today because they're global, they're important, and they discuss
things like the impact of inflation and I still are
desire to go traveling and indeed to get our food
delivered from New York from San Francisco.
Speaker 4 (41:59):
There's that technology
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