The Rise of Enterprise AI | Bloomberg Technology

The Rise of Enterprise AI | Bloomberg Technology

Bloomberg Technology Begins (00:00:00)

  • Salesforce's sales growth slows to its lowest, impacting the S&P 500 and Nasdaq.
  • HP's stock value increases by 40% due to growth in the PC business.
  • UiPath faces challenges with a cut in the forecast, downgrades, and the departure of its CEO.
  • Salesforce's revenue growth falls below the usual double-digit sales growth, raising concerns about its ability to convert generative AI.
  • Corporations are interested in investing in generative AI, but funding sources are uncertain, potentially affecting enterprise software giants like Salesforce.
  • Salesforce and Workday report poor earnings, but Marc Benioff remains optimistic about the company's future.
  • Salesforce is preparing for AI in the coming decade with new features and products, but revenue from these is not expected until 2025 or 2026.
  • Hardware companies like NVIDIA and Dell experience earnings growth, while software makers like Salesforce await revenue from AI investments.
  • Investors are hesitant to wait for Salesforce's AI revenue and seek more immediate returns.

Hiro Tamura, Yuma Crossing Capital Advisors Managing Director (00:05:19)

  • AI is still in its early stages, with significant activity in fintech and communications.
  • Large language models are costly but increasingly adopted, especially among large institutions and hyperscalers.
  • The most attractive investment opportunities lie in mid to late-stage AI-native companies with meaningful technology and capable leadership.
  • Market exits have been restrained in 2022 and 2023, and companies seeking public capital will be subject to market realities.
  • Technology innovation is global, with different versions happening in Asia, Europe, and the U.S.
  • The U.S. West Coast is currently the center of gravity for AI language, but notable AI companies exist in Europe and Asia as well.
  • Each region has the potential to create great AI companies, and this trend is expected to continue in the near term.

Tom Siebel, C3.AI CEO (00:12:10)

  • C3 AI, a leading enterprise AI company, is experiencing increased demand for its AI features, particularly in government services, petrochemical, and energy sectors. The company's growth is primarily driven by federal government spending, especially in defense and intelligence.
  • Despite its strong position in the market, C3 AI's share price has not fully reflected the company's potential due to the early stage of the enterprise AI market and the focus on infrastructure and foundation models.
  • AI has substantial returns, with Shell realizing $2 billion in economic benefits from its implementation. However, risks associated with AI, such as privacy concerns and potential public health hazards, should not be overlooked.
  • The Biden administration is hosting an event on competition in AI, excluding big names like NVIDIA, Alphabet, and Microsoft.
  • OpenAI's latest AI model is becoming more intuitive, leading to increased adoption and collaboration in the workforce.
  • Elon Musk and Donald Trump discussed a potential advisory role for Musk if Trump wins the election, focusing on border and economic policies.
  • Tesla is facing challenges with layoffs, declining stocks, and concerns about Elon Musk's leadership due to his involvement in multiple companies.
  • Generative AI technology, while promising, is not expected to generate revenue in the near future, leading to a decline in the stock price of companies focused on this area.
  • Dell Technologies experienced a surprise CEO departure, leading to a 6% stock decline despite a record-winning streak. The company's earnings report came after reaching near-record highs, raising concerns about server demand.
  • AST Space Mobile, a satellite-to-phone service provider, announced a recent deal with AT&T, contributing to its share increase.

Abel Avellan, AST Spacemobile CEO (00:25:10)

  • AST SpaceMobile is partnering with Verizon and AT&T to provide 100% satellite coverage for mobile phones in the United States, eliminating dead zones and enabling 5G access anywhere.
  • AST SpaceMobile's technology does not require special terminals or devices, unlike competitors like SpaceX's Starlink.
  • AST SpaceMobile has 90 satellites with 3400 pending claims, and they are the largest satellites launching into low-earth orbit.
  • AST SpaceMobile has a strategic deal with Verizon, with $100 million committed to use their service, and plans to enable Verizon under a 50 megahertz three-minute spectrum.
  • The global market for enterprise AI is rapidly growing and is estimated to be worth $1 trillion, with only 10% of the Earth's surface having access to broadband and 5 billion phones experiencing connectivity issues daily.
  • Amazon is expanding its partnership with Grubhub, increasing its stake in the food delivery service to 80%.

Adam Wenchel, Arthur CEO (00:32:05)

  • OpenAI's self-graded large language models raise concerns about benchmark accuracy.
  • Cheaper AI offerings, such as Anthropic's Haiku model, provide cost-effective alternatives with impressive capabilities, including handling corporate data and answering questions quickly.
  • Businesses are cautiously adopting generative AI, focusing on internal use cases like answering technical questions and providing assistance, rather than rushing to implement it for stock price gains.
  • AI adoption is not leading to job losses but is enhancing employee efficiency and reducing the need for additional hires.
  • AI tools are being integrated into daily workflows, assisting with tasks such as writing year-end reviews and aiding developers.
  • Apple's hiring of a senior engineer to build a television sports app for Android suggests potential expansion of its TV+ services to rival platforms.

Jalak Jobanputra, Future Prospect Ventures Founder (00:39:35)

  • The approval of Bitcoin and Ethereum ETFs provides retail investors with easier access to crypto assets.
  • Despite the exclusion of staking rewards, the core assets offer significant potential due to their large developer base and established decentralized applications.
  • The recent surge in government interest in cryptocurrencies, including support from Donald Trump and bipartisan legislation, is partly attributed to its politicization ahead of the election.
  • The House's passing of the 21st Century Cures Act aims to clarify which tokens fall under the SEC's jurisdiction.
  • The U.S. Senate will review an AI-related bill supported by President Biden.
  • The Bloomberg Technology podcast is available on various platforms, including the Bloomberg Terminal, Apple, Spotify, and iHeart.

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