from the hardware innovation, money and power collide. this is bloomberg technology with caroline hyde and ed ludlow. ♪ caroline: i am caroline hyde from new york. ed: and i'm ed ludlow here in san francisco. caroline: gm's using tesla's

charging network. ed: all things ai from law to investing in the space with wesley chan. caroline: how artificial intelligence is taking racial and gender stereotypes to extremes. let's check in on the markets because we have muted ahead of the federal reserve. will they pause, hike in july? we have seen a downward trajectory on the dollar. s&p 500 is up 2.57. mastec 100 up .20 percent. the dollar index is treading water but selling off over the course of the week with the thought that maybe the fed will hike -- pause the hiking cycle. bitcoin having a torturous few days.

we are clinging to the 26,000 but this comes on the back of regulatory headwinds. look at that when we got the news on binance. interesting we are not seeing the move into bitcoin. ed: tesla is up 5%, the best since early october. general motors is adopting its charging stand and gm is up 2.29%. evgo is taking ahead, the tesla name has momentum. look at this terminal chart, up for 11 sessions. 11 days that ended in early 2021. we don't get technical but i

think about the relative strength index. this is is a stock at 86 level, overbought, trading above its 200 day moving average. it has momentum but how does it lasts? >> as we looked at this and realized we could really address one of the biggest issues customers is telling us, i like dvds but if it's my only vehicle i need to know there is a robust charging infrastructure. i think this gives us a huge opportunity to do something better for customers and drive it to be the standard. ed: is this the next domino to fall or something much bigger? david, how is gm going to pull this off? david: they will equip their

cars starting with 2025 with an import that could take tesla charges. the customers will have to use some kind of adapters so they can use tesla vehicles. but it gives gm and ford all access to 12,000 tesla fast chargers and more of the regular chargers. it gives these people a lot of options with minimal impact on their lives and not on investment as well. caroline: how does this actually help the revenue of tesla? how does this help the business model of tesla? david: they will make most of their money selling cars but they have this business of charging where they make revenue. it is not huge money, estimates that they could make 1.5 3 billion with all of these customers.

other companies cars would use their charging network. they have the most reliable ev charging network in the most mature compared to this patchwork quilt of other ev companies, charge point, tv . they have hardware services but jd power says tesla is most reliable. other customers will start using tesla charges because the cap says they're available and the chargers actually work. with a better network, they will make revenue off of their rivals customers in the same way they make revenue and profits off regulatory credit. it may not be huge money but it is still helping tesla at an opportunity cost to other companies i don't have charging networks. ed: tesla networks reaching

maturity. we have the tesla charging network relative to ccs and does this chart tell us the story? it is so much bigger here in the united states. the nef research, a cause back to twitter and tesla to say that ev ambitions. you know gm better than anyone on the planet. what did you make of mary barra to break her silence to make this announcement? david: when ford made the announcement i asked gm are you following next? i think they realized that once forwarded it they had to go in. tesla and gm have traded barbs over the years, suddenly at times and not so subtly of the others. they don't love doing this but mary barra is a pragmatic ceo

and if this will help her cell electric vehicles and her customers stay happy, i think she knows she has to do it and i think going on twitter to do it is probably not their favorite way of putting news out. but it was also very, very effective. it was done by zoom but speaking with elon musk will give him a lot of publicity given that they're changing their charging network. ed: this is giving tesla and gm abuse public at those movers to the downside. caroline: you mentioned ev go and also pilot. there was a joint venture announced by gm. who does this hurt in the startup space and i think of areas in new york about the ev charging that will be put in and

it was helping players other than tesla. who are the other battery operators out there who stand to profit here? david: they can put their own adapters on chargers or change them up that will take some investment money in these companies don't have a lot of cash. the other is, tesla's charges are more reliable. i have a cadillac electric vehicle and i can use it six months from now, why wouldn't i do that if it's a better network? they will lose potential revenue and i think it will be tough on all these companies and they're not in a great financial position. speaking broadly, as a charging industry, the stocks are doing that great. they don't have this amazing ability to raise capital because

they are not love does investments. caroline: charger aficionado, we thank you so much. but stick to vehicles. ne-yo has a bigger than expected loss fueling concerns that is losing ground in chinese markets. the cfo says that neo can meet its target of doubling sales for electric vehicles. coming up, we will have it to generative ai. and personal injury cases. that's coming up, on bloomberg. ♪

ed: a new york lawyer told the judge he did not mean to fall anybody after turning in a brief by chat gp. he did not know artificial intelligence could cite fake cases. the technology has many risks associated within it. staying in the field of ai, there is a start up on personal injury cases with thousands of records compiled into the biggest repository of case data. it is led by venture investment partners.

i'm going to start with you, a month ago you came on this program and told caroline did not, i have a billion dollars to invest in artificial intelligence and i said how are you going to do it? you did not fully answer the question. this goes some way to answering the question. >> there has been an outpouring of interest from investors around the world who say these are the guys we need to help us lunch ideas. when you have large language models the creative juices get going and they try to solve novel problems in a novel way. that is what we have seen, even up is one of the first offerings we have seen. caroline: those creative juices were started in 2020 and i am interested how much as

generative ai change the game for you and how long have you been thinking about making legal work easier. >> we have been experimenting with generative models since beginning of the company the way we think about what we do is return rock case files, medical reports, nonenforcement reports and to documents. it enables injury attorneys time to maximize their claims to help millions of americans who get injured every year. ed: what is the response of the story that we outlined about a lawyer who has to defend himself because he relied on fake legal precedent that chatgpt gave him. what is the risk for your company in that context? rami: it comes down to how you

are using generative models. our approach is very different than other companies. we are strictly focused on the demand letter and the way we use models is in a confined way. we defeated a handful of inputs and summarize it in prose. since we are not scanning the web the risk of -- or less. and they are handled by legal professionals in our clients have not seen hallucinations impact their business. caroline: it's attractive because it's such a specific application on generative ai. are you looking for those specific areas, particularly in health care and legal work or are you seeing core applications? sameer: even up as a perfect

company for investor partners to invest in. they have for the past 10-15 years been the lead venture company field. whether it is toast, pro core, shopify, we've been focused on investing in companies that solve a particular problem for vertical industries in the legal industry is a perfect vertical industry for language models as lawyers deal in prose and in language. this is at the intersection, sweet spot of what an investor likes to invest in. ed: what was doing this deal like? what does the cap table look like? who is convincing who? sameer: it's an incredibly

competitive environment. romney can tell you how many interests capital firms he was interested in and glad you chose us. you are seeing more and more of that partnering going on but in the spirit of serving, you will always hear that from a customer, we are in service of our entrepreneurs. ed: i will give you the opportunity to give your perspective on that. how did you stand out from all these other capitalists that were fighting for you? rami: our approach was to do one kind of document more affordably and accurately than any one human can do on their own. it speaks volumes to the value proposition to attorneys and the

clients who were injured. we wanted to find a partner that was aligned with the mission. i think sameer had warned generative ai investments than any other investor we spoke to. it made it an easy decision. caroline:ou mentioned that it was quicker than human can. does this mean people will lose jobs? sameer: when you talk about personal injury, i can't imagine a human not being there to help shepherd them through the claims process and what we have seen from our clients, they spend less time on document review and more time with their clients and taking on more clients than they ever had before. caroline: thank you very much indeed. it was great chatting with you. thank you so much for joining us

that was an interesting roundtable about all things generative ai applications. we are at the fallout of finance. it is telling -- what it is telling its customers. from new york, this is bloomberg. get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

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ed: type one manufacturing seeing a different revenue for a third straight month. the slump has yet to bottom. they signaled a gradual recovery in the second half of the year with resumption of growth in 2024. binance is telling its customers to take action in order to protect their assets.

this comes as a banking partners will pause withdraws as early as june 13. the company says we are taking these steps as we transition into a crypto only exchange. we will continue to vigorously defend ourselves against the meritless attacks of the sdc. crypto funds are reshaping the landscape when it comes to the banking system. they are turning to regional lenders, the swiss are taking the leading role to where changes are made. caroline: crypto regulation will be discussed in the venture conversation yesterday. i got to sit down with rebecca kayden, db schenker flew in from the west for the conference,

when it it came to ai there was optimism there. the shift in fintech in health care, let's take a listen. >> i'm an optimist, i'm an optimist by trade. the skills and abilities that we can think of yet are going to outweigh the risk which are there and relevant but manageable. caroline: do you have that same optimism, the wringing of hands of job applications will be outweighed by the positives of productivity in your expertise of health care? >> there is a lot new now, and feels like a paradigm shift. we were early investors of a

light -- a life health. there is so much more and we're excited about the potential. making sure that everything is done safely and without bias. to the point of where ai is really disrupting, where is your brain space out? is it inbound, people wanting money. you are trying to sort wheat from chaff or how many companies are not built on ai are they ready for the disruption? >> i love using it for bedtime stories for my kids but as an investor we are looking at a platform shifts and any tech company needs to look at how they are using ai to make them selves more efficient in every field. when it comes to health care, there is so much opportunity, latency and bureaucracy but it's

a different world when you're talking about fax machines. caroline: what about the fintech space. this is an area you have expertise in as well as health care. maybe fintech isn't the first area of adoption, what you make of that? >> i think the incumbents across fintech and education have an opportunity less because of the industry-specific nature and the idea that where there are rote tasks or efficiency to be created by people it can be a powerful tool to create that. that's cost savings, time savings, adding value to what's already there. existing companies versus new entrance. one of the unique things about this technology shift is that the incumbents have distribution advantage the data advantage

that's very relevant in the technology is easier to use. they can do it faster, get up to speed and use multiple advantages and you will see that now and for a while across industries that give these big players a real opportunity that they can jump on. caroline: that was such a great conversation. meanwhile, coming out. we have plenty more to talk about in the world of venture capital. what it's like raising money in this environment and what about a platform that is looking to grow in america. let's check what's happening in netflix. the crackdown on password sharing is working. they see a big bump in new

subscribers. it's up five point 5%. over the past two days, there are still some holdouts on our production team. this is bloomberg. ♪ three nights, esg... the broker will take your bonds. -diversification, futures, options. fiduciary. leverage. [whispering] -frothy markets. psst. virtual real estate is a lock. ♪ cold hard cash ♪ j.p. morgan wealth management knows the world is full of financial noise. i'm looking at your asset mix and plan. you are right on track. great, thanks. our easy-to-use app and local advisors are here to help you figure out what's right for your investments. j.p. morgan wealth management.

ed: welcome back to bloomberg technology i'm ed ludlow in san francisco. caroline: nasdaq is treading some water today. we are up 11 points. we are still worried, tentative about what happens at the federal reserve. maybe a little bit of caution by the end of the training we. two year yield is up seven basis points as we think about where

the federal reserve has to go. bitcoin is down .64%. the registry overhang of crypto but managed to be relatively resolute. 26,000 is where we currently trading. i am looking at a tesla of nearly 4% as they sign that deal with gm as a vote to be leveraging the power of their charging that they have in the united states. adobe is up more than 4% going overweight, as we look at the generative ai applications. peloton is up 4.2%, one standard deviation move compared to the 20 day average.

blue apron up 59.62%. blue apron is one to be watching as well. we wanted turn from private to public markets. pigment is led by iconic growth. let's bring in the co-ceo, elenora crespo. you will be beefing up the business. what services do you offer? elenora: first of all, i want to explain to everybody who we are. we are a business planning platform. to take and make better faster decisions and quickly adapt to

change. basically, as of today, today's leaders have to take strategic decisions based on inaccurate or incomplete data. but we offer with pigment is to help these leaders not only take strategic decisions but converted quickly to the macro environment. as you can see, the macroeconomic environment so any business leader if inflation raises more in north america, how does that impact my growth margin? my sales process? we have communities to offer you better discretion. caroline: the problem you are solving and your background. you worked at google in terms of

strategy. what was the funding environment like for you? with this particular macroeconomic moment you are painting for us? eleonore: what happened was very different. we still had the money from the past two runs so we got a lot of interest in that came for a couple of reasons. we are a low staff platform. every customer across all industries, the type of customers that we managed to sign up are from across all industries. we get involved with the most incredible customers mozilla, aarp, etc.. not only can you show to the

investors that we are using this on a daily basis, and france, we got reports from all of these customers that it was a revolution of the ways that they plan. the reason for the attraction we got, we grew by 10 spaces after. ed: i wanted to jump in and ask you, i want to understand some of how you manage that. you have runway, raised 88 million, 200 50 million today. where did this round of value your company? eleonore: for us, is out of focus at all.

but we are very proud of a pigment is our customer base, partners. we grew in north america, users or using pigment. it was a significant approach and for us, the security question for the freedom to invest in your product and generation than anything else. ed: you've had 10 x growth in the user base last year. how would you deploy the capital to respond to that? do you manage headcount and infrastructure cost? eleonore: we will do two major investments this year. a continuing investment is in the product. we have the most innovative platform by far and we run innovative platforms.

ai, i'm happy to tell you more about that. the second investment, we are serving the largest companies in the world in north america, india, everywhere else. what's important is to be able to bring this customer experience to all of our customers. these are the areas where we are going to invest in this year. ed: i cannot resist the temptation. we have a start up in the software plays, let's talk about ai. caroline: we have to, you let is there. just looking, we saw a video of how you would draft your project and it looks like generative ai and predictive ai. how are you folding that into this? eleonore: ai is already something we thought about something from the beginning. we started to invigorate our ai

into the platform. we have several features in partnership with chatgpt. what is critical about the way we integrate ai is to make the most intimate customer experience for any business on the platform. our goal is to have literally any kind of business use pigment. it's all about the specific facility -- specificity of the platform. you can ask in your language in the platform will answer. it is democratizing access to the platform. ed: thank you to eleonore crespo. coming up all thing ai investment and all with wesley

chan from fpv investments. ♪

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>> the hype is absolutely remarkable and i have never seen anything quite like it. ai has been having an impact for decades and this stuff is not brand-new. >> if i am right on ai and the impact on it. it's already making the top coder 7, 8 times and they were a month ago. if it is as big as i think it is, nvidia is something we will want to own for 2-3 years.

>> we want to engage with the regulators what will the next generation of a id which will make it more effective. you will understand we are using it for the right purpose. changing the regulatory process around the use of ai will be an important next step for every industry. >> it is just more software. bringing more software into finance and there has been all kinds of breakthroughs in all kinds of problems. it is statistical pattern matching. it's extremely powerful, interesting. i do not see ai achieving what some would call the holy grail. everybody wants to know what the s&p is going to be in six months. some hype and some reality there. speakers giving their thoughts on all things ai.

a space we can't get enough of. welcome wesley jan, the cofounder of fpv venture. i'm sure you have an opinion about ai ventures? wesley: i've seen this cycle happened 70 times. i've been an investor for 15 years. this came with mobile funds and all these fun started on mobile. and today everything is mobile can you imagine trying to book an uber on your laptop, you do it on your phone. everyone was incorporating uber on their phone and now we have an ai. people think they need to invest in all these ai companies but five years from now it will be part of our strategy. it's an interesting cycle but we

see this happen over and over again. caroline: it has taken a long time to move out of the exuberance of the headlines. how can you get an idea of who to back? how do you know your portfolio companies are resilient to destruction and the ones you back of the right ones? wesley: we take our lessons from history. in 2010 when i started at google ventures we invested in a lot of mobile companies. mobile companies aren't around anymore because there are stakes in every product a we will see that with ai. every one of my colleagues is rushing into an ai. we are not investing in ai for the sake of ai.

we invest in companies because there will be great business models created by ai which we don't even know you about yet. there are very few companies. i think we will see the same with ai. we are looking for company business models i will be changed by ai. there's him a lot of money going into it. you will see this war between google and microsoft. these companies are well funded by outrageous amounts of compute power. we want these companies that have been involved with ai. ed: it was almost a year and a

day because you launched a billion-dollar fund. based on what you said, have you not pivoted at all in the first six months of this year to respond to what is happening around you in terms of strategy? wesley: we are investing a mission driven founders that have a unique insight in how to change the world. i spent my first 15 years at google. a joint very early, there were a few people at google when i joined. google is an ai company today. no one saw ai as a company, they saw it as a search engine. we have been doing this for the last year and i've been doing this for my career when i was at global ventures. some of her best companies are enabled by ai.

there is business model certainty, thus where where invested. we have a company called strand tx and they are redesigning the future of mrna drugs. there is a new generation of drugs coming and they designed the drug is most effective, not toxic at all with no side effects. we have another company that is doing ai. they find natural compounds that are able to be future drugs for diseases, these natural compounds have been used for a while but how can we turn them into drugs? they are using ai to figure those out.

we know that the drug is very valuable. those of the kind of companies where invested in. the founders truly get that ai is getting them to value so much faster. ed: i'm really interested in the mechanics of how dealmaking has changed over the past 12 months. you launched with 400 million last year, because of the inbound activity around ai, are you having to write larger checks or checks with more frequency to keep up with the energy in your industry? wesley: we have never invested in the high. with grocery delivery companies where they were investing millions of dollar. every week i was getting another postcard for grocery delivery companies. at one point there were 15 of them. same with the scooters, we don't of us in high. we are investing into drug

discovery where it helps get to the drugs faster and they are not too many people competing in that space for ai drug discovery companies. every time we do a deal there are two other investors looking of the space because they are chasing these overhyped ai companies where we don't know which one will work. we are very contrary on on how we look at companies. we don't do ai for the sake of ai. just like in 2010 where your mobile for the sake of mobile, those companies are still no longer around. ed: fpv ventures co. owner wesley chan. how one generative ai tool can further enforce bias through imagery worse than humans can. more on those risks and what's at stake next. this is bloomberg. ♪ avalarahhhhhh

what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

ed: bytedance is testing its own chatgpt's. ed has been tested internally by employees. tiktok is also experimenting with its top chatbot which

appears as an instant messenger. perpetuating harmful stereotypes is one of humanity's biggest hills. a bloomberg analysis of a tool says the bias from ai is even worse. this is today's big take. bloomberg uses stable diffusion, it gives commands and generates thousands of images. caucus with -- talk us through what you did and why? reese carried out an experiment with image fusion. being open source makes it easy to analyze and experiment with it. we wanted to understand how deeply ingrained vices could be in this technology. we asked her to create thousands of images for workers for 14 jobs in different criminalized

categories and we analyze the results. what we found was a systemic pattern of racial and gender bias that does not just replicate stereotypes but makes them worse. it stretches them to extremes worse than those found in the real world. women and people with darker's skin tones were underrepresented in high-paying jobs. caroline: it is truly depressing and ultimately the problem is society and generative ai is just diffusing that that word. when you look at the outcomes, how much is their discussion about the fixes here? is it about auditing some of the algorithms? is there a way of ensuring -- or is that the prompted that is being written? leonardo: one important thing is her transparency. it's a good thing that stable diffusion is open source.

it enables people and researchers to improve the model and make it better. that's, and away that he can be close source models like dolly where we don't have much knowledge and how they are being improved and i how much. ed: let me jump in real quick and i just want to point out a spokesperson says all ai models have this inherent bias but there point is that by open sourcing it they can work towards overcoming that rather than close open source models. caroline: i hope you can join us and talk about this more. but really, rita's work. thank you for staying up late for us in italy. it's a fascinating piece and ultimately, a little depressing. we don't want to end on a low

no. but you can always get more. ed: the week started with apple and you can recap on the podcast wherever you get your podcast. from new york and san francisco, this is bloomberg. ♪ ♪ ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. katie: bloomberg real yield starts right now. ♪