>> from the heart of where money, innovation and power collide, this is bloomberg technology with caroline hyde and ed ludlow. ♪ caroline: live from new york, i am caroline hyde. we are breaking down results from uber and a sit down with the ceo dara khossrowshahi. caroline: ed: we will speak about where adobe's $20 billion purchase tans and look at new ai tools they have unveiled. caroline: we will bring you the big takeaways from the developers conference is the ai start up unveils custom gpt's.

let's check on the markets. what are run we are having. eight straight days of gains on the nasdaq. s&p 500. we are up .9%. what is galvanizing that? the federal reserve. hopes of the hiking period coming to an end is driving yields down. up by some 10 basis points. new york crude off by about 3.5%. some geopolitical risks and anxieties. falling down a little bit in the world of commodities. that backs the inflationary pressures. moving on, a quick look at the risk sentiment of choice when it comes to tech. even with the dollar down we have crypto down further. we are off by a point for bitcoin. what do you have on the micro? ed: uber has been an interesting

one to track. now all three percentage points -- up three percentage point. and earnings hit it dropped as much as a percent. revenue missed the estimate but that is down to a specific business model change. an accounting issue that impacted negatively to the tune of $520 million. the street is looking at the outlook for the fourth quarter, both in terms of gross bookings would also -- that has been the story. that looks to be continuing or changing our attentions to gap profitability on an income basis. that happens to tech companies when they move into the next phase of life. the street does like what it sees. caroline: it does with the run rate on profitability. let's dig into these uber. earnings welcome to the ceo of the company, dara khossrowshahi, and our own emily chang. emily, take it away first. : emily d -- emily: dara, thank

you for joining us. uber shares were volatile this morning and on the upswing now. what is the message to investors are seeing mixed signals? dara: we had another record quarter. the business is accelerating and it surprised us on the top line. our gross bookings came in over $35 billion, of 20% on a cost of currency basis. already versus a high growth rate in q2. if you look at the number of trips taken on the platform, two point 4 billion trips this last quarter. 27 million trips taken everything day. that was up 25% on a year on year basis, again an acceleration over last quarter were trips grew 22%. we did have a revenue accounting adjustment. it was taking marketing costs

and incentives. we do provide incentives to customers, discounts to spur demand. while they used to be classified as marketing costs in previous years and previous quarters, they were classified as revenue. our revenue stayed or grew a 10%. it is that your graffiti of marketing classified as cotter revenue that took down a reported revenue by 8%. does not affect the bottom line at all. our adjusted dot came in it $1.90 billion. we were gapped and became profitable with $200 million in net income. something we expect to be profitable going forward as an enterprise. emily: your second quarter profitability. revenue is growing more slowly over the last several quarters.

what are your longer-term -- what is your longer-term view on whether the growth is going to come from and those who were concerned about market saturation? dara: the revenue growth slowdown is purely as a result of these accounting reclassifications. if you look at the business and the bookings growth, which is really consumer demand on the right side and on the delivery side -- ride side and the delivery side, both accelerated. gross bookings grew 30% on a year on year basis. it was an xo the ration of her q2. we saw strength all over the world but soft meticulous -- particular strength in asia and latin america as a result of some of the newer products we introduced. taxi to wheeler's, motorcycles that are uber motorbikes that can whiz through traffic, etc. on the delivery side the gross bookings grew over q2 and that is just food

delivery continued to be super popular with consumers all around the world. it is our growing faster than the general category. we gained category position in nine out of 10 top 10 markets all around the world. it is our newer grocery offerings expanding beyond his food into grocery, alcohol, pet food, whatever you want delivered to your home. we want uber eats to be there. the strength continues. the consumer -- the u.s. consumer and global consumer continues to be strong. that is definitely a tailwind for our business. emily: you have been building out your advertising business. i'm curious where you see the biggest opportunity. where the most upside? where is the best place to show folks in the new advertising? how does that play out? dara: the biggest part of our advertising business are restaurants looking to improve their placement inside the marketplace by targeting

consumers or eat or who are likely -- eaters were likely to eat from the restaurant. these are mostly small and medium businesses and enterprises like mcdonald's, windy's whoever touched -- wendy's who advertise in a platform. we can identify consumer segments who are likely to react to that advertising. as a result, advertising revenue continues to grow at significant numbers. we targeted a billion dollars in advertising for next year. we are pacing on that target. we will exceed that target. the number of advertisers who are advertising on uber is up 70% on a year on year basis, over 400,000 is this is -- businesses. one of the newer advertising products we are excited about is branded advertisements. you might see those branded

advertisements when you are using your uber app and waiting for your car. we might show you an ad for apple or credit card company over and upcoming movie -- or an upcoming movie. we have very big hopes for our branded advertising. ed: we have gone deep on the numbers. i have a big picture question for you. what does uber look like five years from now? what are the steps you take to meet your vision for uber in five years time? dara: i think in five years time we want to be that operating system for everyday life, for you personally. we want you to wake up and think about uber. i've got have breakfast. am i going to top off my groceries? if i'm cooking tonight. going to the office, coming back to the office. we want uber to be there every

day to help you in your life, to get you where you are going, and to save time from some of these tasks. some people like grocery shopping but there are a ton of people who don't like grocery shopping. there are a ton of people who just want to eat at home, etc. we want uber to be that relevant like partner or life operating system for you really all over the world. caroline: is the freight unit still part of that mission in five years time? there's been talk from bloomberg analysts about that. dara: freight is a promising segment for us that is suffering now from the great freight recession that you see. freight rates are coming down post-pandemic as a result of an oversupply situation. there are a ton of digital brokers and analog traditional brokers going out of business now. whatever big competitors convoy announced they were going out of business a couple of weeks ago. the rates have hit the freight

business as well. it was down 20% percent -- 27% year on year. the technology of matching supply and demand an additional way, we think it has incredible promise. as the freight business cleans up to some extent and some of the smaller players move out, we think uber freight will emerge as one of the players with the best technology out there. we have invested into the transportation management part of the business. not only do we connect you with a truck or two to go from point a to point b, we are helping you with your whole freight network and using machine learning, using the power of the data we have two create a more effective shipping network for you. we think that is a promising business and at this point we are absolutely investing in freight. emily: uber has been in the

business for a long time. you're integrating it more and more into the platform. where have you seen the biggest value at so far? where you respect to see the biggest value add from ai in the future? dara: ai is intermingled into every part of our platform. every time you see a place -- price on uber or make an offer to a driver on uber, every time we match you up with a vehicle around you, all of that is powered by ai. some of the newer ai innovations you see with large language models are helping us automate some task that was difficult to train previously. if you put in your license, your insurance, background checks, etc. we can transcribe those with the power of machine learning

instead of having humans look at it. humans often make more mistakes and algorithms. we have to combine both. another area that we think is quite promising is the customer service side. anytime someone reaches out and customer service we have to be aware of your history with uber. we have to be aware the context, what is going on in that particular time. also the policies and policies differ all over the world. machine learning algorithms can go through all of that at a click of a button and then get back to the customer that can provide an elevated customer service at a lower cost. something that is super exciting for us. ed: thanks to uber ceo dara khossrowshahi and emily chang. a lot of volatility in the stock. a wide-ranging conversation. coming up, openai wraps up its

first-ever development conference in san francisco where the key takeaways for some of the on the ground, a good friend of ours out in sf. this is "bloomberg technology." ♪ fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

>> you can build with the gpt a customized version of chatgpt promised anything. the instructions, expanded knowledge and actions, and you can publish it for others to use. caroline: openai ceo at the company's first developers conference for the unveiled

custom versions f chatgpt. let's go to rachel metz. you are assessing all the euphoria around it. will this fend off the competition? rachel: that's a great question. you are starting to see them think about a little bit what other companies are doing and what we can do really well, how we can get people interested in using our products even more for different things. the fact is you can use something like chatgpt for all sorts of things. it would work even better if you customized it and made like a homework helping bot or a recipe bot. give it a little extra data, train and a certain way and perhaps it will be something like the app store that apple came up with years ago. we were not quite sure what to do with it at first but after a while it was like this is what we do. ed: that was something a lot of folks were talking about.

openai to do a digital store and introduce revenue-sharing, kind of like x has done. what have we done about that future, rachel? rachel: there is going to be some looking over of the gpt,s the customized chatbots before people are allowed to offer them to other people. similar to what apple and google, etc., do with their respective app stores. it is not clear to me yet how the revenue shares are going to work in terms of if people are downloading these things a lot, if the creator is going to get paid a certain amount of money. i think some of that is still tbd. caroline thank you, rachel metz, bringing the inside track of what the event was about. ed: elon musk's space x is on track for $15 billion of sales in 2024. that's according to bloomberg sources. the company's starling business is showing growth that it is

expected to and exceed the company's rocket launch business. starling could account for -- startlink could account for $10 billion in total sales next year. we work shutters at stores, filing for chapter 11 bankruptcy in new jersey. this capping it to multiple is few years with the company navigated a failed merger, covid-19 lockdowns, a blank check merger and a slow return to office trend. wework had a $47 billion valuation in 2019. then you look at who might be impacted as creditors, a big-name. caroline: creditors, credibility. mushy oki -- they have dumped 40 office leases in new york city since the announcement. we have some notable moves happening with publicly traded companies. apple's want to keep an eye on. ed: perverted by mark gurman. apple basically hit pause on

developing most of next year's software updates for iphone, ipad, mac and other devices because it's trying to fix some bugs. gurman says this was announced internally to employees. we will bring you more on that throughout the day. this is bloomberg technology. ♪

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ed: figment is launching new collaborative features to boost productivity with new features to generate, summarize and sort files among other things. delighted to be joined by the ceo dyland field. we were talking about the technology base for what you have announced. where does the technology come from?

have you gone to a third party? dyland: it is great to be here and thank you for having me. just a back up a little bit, we try to make it so people can go all the way from idea to design to reduction and software code. what we are launching today is the new features that will help make it so that you can do meetings better and have more production -- productive brainstorms. we are excited to see how people use it and we are using our financial model from openai. we are using gpt 4. definitely something we can reconsider in the future. we have to do a lot of work on the prompting in particular to make it so we can better lower the floor and make it so more people have better working and they can raise the ceiling to do more on our product. caroline: you outline how this will help customers.

what does product design look like when ai has taken charge? where will the human interact with ai and put in a prompt and have all the latest fintech app in the blink of an eye? dylan: ultimately, for figjam ai, heavy take of the busywork from great meetings and brainstorms? if you look forward to figma design and put it into more products, whether it is designer development with the new prop we launched early this year, i think ai will really help you get to a great first draft. it will still take a great team to get to that final product. i think it will make it so that you can do more and be even more productive and efficient. we are excited to see what that

takes her users. right now i think is more about how you get away from the busywork, not how did robots take over. ed: you called it. interesting choice on openai. it has been a year since you announced you were acquired by adobe. is that actually going to happen? what are the chances the deal falls through? dylan: we are very optimistic and excited about what we can do with adobe. there are such complement to at adobe and figma can bring together. bc the work with firefly and what they had done with ai. figma can learn a lot from adobe there. figma has gone in to new audiences such as developers. we think we can bring a lot to adobe there as well. we can get this done and work together. caroline: you have been brainstorming about what you can bring to consumers and how

your products change. eu regulators were worried about how the use of ai might fend off competition further. how do you think ai brought together with adobe and yourself might change the game a little bit? dylan: all companies will benefit from ai. i'm really excited to see how different companies are able to bring ai into their solutions just to make better product for everyone. adobe and figma are no exceptions. both companies will do great things here. this is the very start. there is so much more to come and it's hard to predict the future of it but we are building towards it. ed: hard to predict the future but i will still ask you to try. there's a lot of interest in figma's momentum. that is why there was excitement about the deal with adobe. what is your customer momentum like? what are you bringing into this deal close? dylan: i can't share exact numbers but it's been very exciting at figma.

we have added about 500 employees now since the deal was announced. we introduced new products and advanced prototyping variables. held a conference called config with 800 people coming. if all like we have been accelerating our pace. i hope to continue that acceleration and momentum into the deal close. caroline: really nice to have you here talking is through it, figma ceo dylan field. we just talked about ai. we will talk about it a little bit more, surprise surprise. we will talk about it with misinformation and how it could impact elections. we will speak to a key professor at michigan state university, next. ed: a quick look at roku. up 20%. kathy woods said they sold roku, recently the biggest holding. i have one roku tv in my house. from new york city,

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ed: welcome back to "bloomberg technology." i am ed ludlow. caroline: i'm caroline hyde. let's get a check in the markets. we are on the bit of a tear. we have been up for eight straight days on the nasdaq and on the nasdaq 100. lana swinging -- longest winning streak since 2021. some of the big tech names are rising on the day. let's look at some the micro names. microsoft heading towards a new record high at the moment. up i just 4.75%. data dog flying. outperforming and raising its guidance on the back of its numbers. uber managing to be on the higher side after its earnings.

we see it is pushing towards the forecast the investor base is liking. apple still higher. we get the scoop coming from mark gurman saying they might have to put a pause on some software initiatives and improvements next year because they want to iron out some glitches. that will be across the phone, the mic, across --mac, across most of their software. ed: some of the biggest names in mega cap tech or the spotlight this week for political reasons. officials from meta, google, microsoft and adobe are heading to capitol hill tomorrow for a senate forum on ai's growing influence on american elections and democracy. is part of a series of closed-door discussions that senate majority leader chuck schumer has been leading to help numbers get up to speed on the technology and in the end regulating. we will dive into this conversation on this election day with anjana susarla,

professor at michigan state university. the way we frame it in our daily politics newsletter is that today's election is kind of a testing ground for the events of 2024. in the context of technology companies and social media companies do you see it that way, professor? anjana: absolutely. this is a test of multiple things. one is the provenance of some of the methods used to identify deepfakes. the information has gotten sophisticated in today's world. how can platforms enforce all these policies where given the volume of misinformation that is out there, what are some sort of moderation policies platforms can responsibly and clement? -- implement? caroline: how can ai fight it and add fuel to the fire

ultimately? which side will be winning out here? how can we use artificial intelligence to fight off this rise in misinformation? anjana: there's a lot of methods that platforms have used. meta uses methods called self supervised learning to identify deepfakes and fake news. sometimes what happens is there are issues where we have a known source of misinformation that is debunked and removed on the platform. you can duplicate essentially the same information and spread it in a different means. platforms have got good at those kind of enforcement issues. ai has helped tremendously in cracking down on some known sources of misinformation. what is challenging from an ai perspective is things where there are half-truths or rumors

that can lead to maybe people not showing up and voting, like voter turnout this information affects. those are challenges for ai. ed: caroline and i have covered election cycles and talked about social media companies, meta, x, and in that period they have talked about the actions they are taking on content moderation. they said it is not their responsibility to oversee everything essentially. what is interesting about ai as it gives them a technological tool. is it sufficient for them to get it right this time around? anjana: i think it is only one part of the arsenal of tools they have. in the sense that it is not completely platforms' responsibly alone. we need a coalition of citizens and platforms working together

to solve the larger challenge of disinformation and misinformation given it is so easy to create and manipulate the truth. so easy to spread ai assisted deepfakes and so forth. caroline: i want to bring to our audience's awareness that today is not just about election and the focus but it continues to be one where the government is looking at the impact of social be on mental health. particularly those of teens and young adults. a whistleblower is testifying before the senate subcommittee about social media, its impact on teen mental health and meta says every day countless people are working on how to help keep young people safe online. how do you rate them at this moment fighting that particular area of concern that society has at large? anjana: this is somewhat of a

troubling area. i think there were a lot of studies where people have tried to create an account posing as a teenager. within the seven or eight sponsored ads you see or clicks you will end up seeing content that is troubling from a mental health perspective. i think those are things where once again we need more transparency. europe is doing that, asking platforms to provide more detail into how they are enforcing all these policies. hi think this is one area where maybe platforms ought to have a huge challenge. i am sure they are doing a lot from their end. as citizens and as the lawmakers have a lot of questions i think we need to ask platforms to be

more truthful and transparent and share their thoughts on content moderation, how they are fighting these issues. caroline: great to have your expertise on the show. come back. anjana susarla, professor at michigan state university. coming up, how to accelerate workflows for financial services businesses with ai. we will be joined by eyal shinar , ceo of black ore. ed: beat expectations. strong eps forecast for the current period. slightly disappointing revenue forecast. they are talking about uncertain geopolitical situations are on the road. this is -- around the world. this is bloomberg technology. ♪

caroline: it's an ai start up world and we are just living in it. it just launched the date, announcing $60 million in financing led by none other than a16z, a list of the who's who of vc. let's bring in eyal shinar who will discuss what you are using $60 million for. eyal: thank you for having me. we are very excited to announce our launch. we are using -- we are building a platform by leveraging ai that is streamlined and went over the

core workflow and later on the financial services in general. most of the problems we focus on now is around capacity issues. there are higher complexity of tax codes. 238 million tax returns done annually in the u.s.. 300,000 accountants left the job in the last two years. there are 16% less accountants then 2018. they are facing severe capacity issues. they are giving up on revenue. they want to school to study accounting. we are automating the pieces that could be automated by a machine. right now they are struggling to find the right capacity constrained. ed: that is like the who's who

of vc's backing you. how does it work? if you are an stealth how do they even know about you? is it you kicking down doors and saying we have something really big coming? eyal: we do have something really big coming. we to have existing relationship with most of those investors. in my previous company some of them are already investors. i reached out and we started discussions. we did not have to kick too many doors. ed: talk about the technology. are you a maker of large language models, or do you use underlying technology of a third party to make an ai tool that is relevant in the financial services space? eyal: we do build proprietary technology not just from lmn,

but a combination of machine learning. we use third-party technology. it is extremely expensive. the pace of progress in a few years it will be at a fraction of the cost to build it ourselves. 90% of that technology is not leveraging lmn. it is less then 10% of what we are actually offering today. caroline: how do you ensure anyone who wants to be really making their accounting work, the job of a cpa efficient only comes to black ore, not others that are building similar models? eyal: that is the main reason why we were in stealth so long. we spent two years building the architecture and the actual planning of how we pull the data. how we train the model to recognize the document. classify it.

automatically fetching the data from the different documents. it could be a pdf. we put it in the right place and the tax software without requiring the cpa to change any workflow like they do today. eventually the end product is a fully completed tax return ready for the cpa to review, as well as the work product associated with the tie out and so on. it does take more than ai to build that. understanding the workflow and processes. we started relatively early on working with many different cpa firms and tax preparation firms to make sure we understand the workflow end-to-end even before it was cool to use the word ai. we automated a big piece of the platform. ed: you are a serial opera to renew her -- entrepreneur and founder. i have written about funbox and

its fundraising. how expensive is engineering talent? you have a big chunk of cash now but how far is it going to go in the talent space? eyal: engineers are expensive. just like cpas. when you want to focus on the high caliber of talent humans are in high demand and very expensive. especially when you start adding words like data science and ai it makes it even more expensive. the bottom line is if you build the right team you don't need to throw too much money on the problem. you hire before you have the product out there. we are being very efficient not just because of the cash burn but the organization is becoming less efficient when you have too many people. ed: anjana susarla thank you for

your --eyal shinar thank you for your time on "bloomberg technology." it is all part of elon musk's world. the focus of a new bloomberg podcast. we will discuss all of that next. caroline: let's go global. space telefonica, outstanding shares in his german unit as much as $2.2 billion. they want to take the company private after they lost a key wholesale contract. 5.5% when it was trading -- off by 15% when he was trading in europe -- .5% when it was trading in europe. this is "bloomberg technology." ♪

caroline: in a rare move by apple the company is putting paws on development in the next year's software updates for the iphone, the ipad, the mac and other devices to fix glitches in the code. mark gurman broke the story. how out of line with the usual policy is this for apple? mark: thank you for having me. in 2019 when ios was as buggy as ever. the senior vice president of software at apple if omitted for the company calls the packed. -- pact. you cannot add any new features

into ios during his development if it's going to break other features or make the operating system more buggy. so far end of element of next year's systems apple found a lot of new bugs are being introduced. last week the end limited a pause or a delay to the next stage of development. for one week all the engineers can focus entirely on fixing bugs before moving forward. caroline: brilliant scoop. thank you for keeping track of all of it. thank you for bringing it today. we want to talk about today's big take folk again -- focusing on elon musk's neuro-link. he's looking for someone to have a chunk of their skull removed by surgeons so well robot can insert a series of electrodes into their brain. when the robot finishes the missing piece of skull will be replaced with a computer the size of of a quarter that will stay there for years. the job will read and analyze the person's brain activity and

relay the information wirelessly to a nearby laptop or tablet. ed: are we volunteering? caroline: what is notable is the ideal candidate is under 40, paralyzed. ed: i am not volunteering. sticking with musk, his empire has granted the billionaire a degree of power and global influence that transcends the industries he shaped. in a weekly chat show and podcast bloomberg editors and reporters break down the most important stories on musk and his empire. we are joined by sarah frier and max chafkin. elon, inc. we have been talking about this for a while. what is the broad concept? sarah: a man you can no longer think of in terms of his disparate companies. there are six now but he's a geopolitical force.

he affects our culture. he owns a major communication platform. he's in the car business, satellites, involved in wars. he has this power that is so vast and interconnected that we felt that even as he becomes a more overexposed person, perhaps directing his own messages, he's under explained. his work is something that would take -- i have spoken to a lot of people in the musk empire who can tell you what is really going on. caroline: ashlee vance writes the big take which is about neuro-link. the opportunities of helping people who are paralyzed are extra dairy. many within safer that you need trust and safety, not to mention with spaceships that blow up every now and then, cars as well. where are you starting with the norm us empire with which he

oversees? max: the show that drops today is about the new chatbot created by x.ai, musk's ai company. x.ai, standalone tech company. they have recruited some really big names from deep mind and google. it is closely connected to x, formerly known as twitter, because musk uses it as an enticement to sign up for this higher tier of service which is called premium plus. it cost between $16 and $20 a month. musk says you will get all the great benefits of x premium plus but also my ai company. it is hard to understand. ed: these companies all have a direct relationship. you get a bonus episode dropping which is about musk's relationship with the unions. i remember covering tesla in march of 2020 when the pandemic

it. the unions sensed an opportunity because of musk's position at the fremont factory at the time. max: we have two segments. episode two is a bonus episode with ashlee vance on neurolink into detail about what we learned getting inside the company. on the union issue it is super interesting. it gets down to tesla's finances and a serious political component. shawn fain, the leader of the uaw is really a new union boss. in certain ways there is a thought that maybe elon musk and shawn fain are matched to each other. they are larger-than-life, having big ambitions. we will see what happens. caroline: what do you want a listener to come away with? many would say we have heard too much elon news across every outlet of late. what is different here? how would you educate in that manner? sarah: we want to explain.

these two pieces of news you may have heard of, the groc ai and the union fight that may be coming up. they both are connected to musk as a geopolitical figure and how we might affect the 2020 for elections. haupt -- 2024 elections. what might be motivating him. we go into his conflicts and his competition and what really drives musk. we get behind the news and explain why you should care, what you should care about, and what to look forward to as the world shifts around this extremely powerful man. caroline: context. max and sarah, really excited for not one but two you will be getting, dropping whichever area you are currently digesting your podcasts.

that is this edition of "bloomberg technology." ed: check out our podcast. this is bloomberg. ♪

matt: welcome. quick check of the markets. once again, stocks are gaining. if we finished today in the green, it will be the seventh consecutive day of gains for the s&p 500. investors buying stocks and bonds. correlation still holds. 4378 on the s&p 500. 10 year yield, 4.893. bloomberg dollar index up a bit but still