>> hosting "jeopardy!" what else doesn't he do? >> it's good to be favored, man. that's what we're saying here. interesting development there. >> and like you said earlier, if they're not done, you do wonder where they might be looking next in terms of pro sports. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. thank you so much. welcome to "closing bell." i'm scott wapner live today from one market in san francisco. this special hour begins with the mania around ai, the risks, rewards, and runaway success of the stocks set to benefit from this transformational technology we have several special guests joining us today we have the founder and chairman and ceo of altimeter we also have the co-founder of deepmind, sold to google is alphabet losing out in the

arms race? we will ask him. and neeva's founder is here. he just sold them to snowflake who else was interested in that? we'll find out let's check the markets with 60 minutes to go. you see the dow is a marginal loser. the nasdaq, what else is new it's been positive for most of the day. tech names like alphabet and meta there is the russell for the day. bring us to the talk of the tape ai and the power and pitfalls of this new frontier and what investors need to know we welcome in brad gerstner. the first time we had an interview with you was here, and now we're covering this new frontier when you were with me last, you said, quote, we have one of the most significant technology disruptions of our lifetime, probably bigger than the internet itself.

walter isaacson alluding to the same thing a short time ago. this is everything. >> these systems are expo exponential. first, it's good to be back here with you we were back here, and this commemorates that covid is really over that we're back in studio, but yes. these systems are exponential, and what i mean by that is the primitives to ai are data, compute, silicon, the transformer model. we couldn't be where we are today with all this substraight not having been laid down. what we mean is the internet allowed us to discover information, to retrieve information. think ten blue links what ai allows us to do is extract the knowledge from that information, to get a co-pilot to help us make better decisions. >> so you have made building your portfolio central to ai in many ways, whether it's nvidia or meta or microsoft and snowflake and some of these

other companies that are expressing what they think ai can be for them. i mean, this is the essentially way you are investing today. >> correct i mean, but in many ways it's an evolution, not a revolution. those of us who have been around silicon valley for the last 20 years, the goal was never to give people ten blue links that's, like, a glorified card cat catalog. we help you discover the information. for us, it have a question not if, but when we would have the transformative breakout where businesses and consumers could live better lives, get better answers through their information. so for us, over the course of the last two years, we saw the acceleration, right, coming out of the chatgpt models that open ai was building. we knew the work that google was building we hosted an investor day last year before chatgpt came out, and the thesis or the theme of the investor day was all the world's data moving to the cloud, augmented and intelligent applications to the top of it. we started rearchitecting our own port f portfolio in

anticipation of where we're going to go. >> you've also reassessed who you identify as the winners and the losers, who finishes in second place i'm aleluding to your selling to google, do you think alphabet needs to reassess their own portfolios around tech and ai? >> i think in moments of platform disruptions, and this is the third that i have managed through, so the first one being the web itself think about 1995 through 2000. then mobile and cloud, think 2008 through 2012, and now we're at that kind of beginning of the age of ai. there's major value creation, but also value destruction let me give you an example the entire architecture of the web, what most internet companies extracted value from,

whether you were selling a product or you were advertising was static web pages you would go to a web page that was optimized for the google crawler, right? the google bot would come there, and eat up that information, and it would show you this and ten blue links and put that on the page that's not where the world is headed the world is headed in a place where we're just going to chat our questions and say, how do you make a french omelet and you'll have someone who dpgives you the answers up won't have to search through the blue links who are the companies that will benefit? i said on your program, you know, six or nine months ago and in my letter to mark zuckerberg, you said, double down on ai. i think meta's positioned to be one of the biggest winners of the hyperscalers of the application of ai to consumers. >> you mentioned the period of

'95 to 2000, and we know what happened at theed end of that period, and it seems all roads at the end of the possibilities of ai lead us to thinking about what happened back then, and this mania compared to that mania. are there any similarities at all or do you scoff at the comparisons? >> i think the greatest disservice we could do to investors, right, whether you're playing at home or you're a professional investor is to compare this moment to 1999. in 1999, you had valuations of make-believe revenue and profits. it was the promise of what may come we had 30 million people connected to the internet via broadband. right? it was a tiny fledgling interesting without real businesses, without real free cash flow, and it was trading at dramatically higher multiples. i'm not saying that at the start of platform disruptions there's not a lot of excitement, but you'll have a lot of things go to zero. that's the business model that the venture industry embraces,

but if you look at facebook, it's trading at a deeper value stock than a lot of the cyclicals out there notwithstanding the fact they're leveraging ai. i don't think you serve yourself well by saying, oh, this is going to end in -- look like 1999, end like 1999. i think you have to take a fresh look you have to find the company i mean, listen nvidia the consensus expectation for nvidia to start the year were that data center revenues would be down 6% for the year. the consensus for q2 was that they were going to do $7.2 $7.2 billion in we've knew they came out with $11 billion these aren't make-believe. these are people consuming these products to drive better decisions in their business and lives. >> i think what we're trying to think of as well, how we'll all be impacted. as an investor class, as a worker class goldman sachs suggests, their

research says 300,000 jobs around the world could be impacted mark, and i know you know him well, why ai will save the world is what he tweeted the era of artificial intelligence is here, and boy are people freaking out. fortunately i'm here to bring the good news. ai will not destroy the world and, in fact, may save it. you said you agree with that on twitter. >> the future is a distribution of unknown probabilities so we can all dig a hole and hide in it because there's tail risk in the world. i mean, i remember these same arguments in 1998, 1999 that the internet was going to displace everybody, and we weren't going to read books anymore. we weren't going to do these things the fact of the matter is all human progress -- the human condition is better today than it's been at any time in its history, that 110 billion who have lived before us on this planet and we all live a better standard of living than all of them, and the reason for that is because of innovation and invention that drives human progress, and when you think about artificial intelligence, and here's where i am in total

agreement with mark. the known benefits to solving life science problems like blood cancers, the known benefits like giving every kid a one-on-one tutor that's going to help solve the two-sigma problem, the known ben benefits, you know, in terms of helping engineers develop software faster, those are huge and well known the tail risk needs to be observed it needs to be discussed it needs to be debated, but just like we have regulations that say you can't use your phone and your computer to plan a terrorist attack against the world trade centers, right that's illegal, but your phone and the internet can be used for that right? we need to be vigilant around ai, but it is way too early to start throwing up roadblocks to ai theo the real dystopian place is if we put roadblocks in front of good guys building good ais while rogues go build these

things that's the dystopian future, and the government, and we spent a lot of time talking about others there's got to be a balanced approach we have a lot of laws on the book just enforce the laws. if people are breaking the laws, we need to come down on them. >> we will talk much more about that over the rest of this hour. you are going to stay with us. let's get to our twitter question of the day. do you worry about your job with the emergence of ai? head to our twitter, and vote yes or no. in the meantime, let's get a check on some top stocks to watch. kristina is here with that >> i'm worried about my job, but i write my own scripts shares of intel getting a boost after the chipmaker said it was selling stocks with an option to sell more down the road. mobile eye was sold for $17 billion, and it's surged to

above $30 billion in this ai dp excitement, but it won't receive the proceeds from the sale intel up 3 %. a tale of two giants, and pitching the idea that apple should take over disney. apple's wearable technology, disney's roster of content makes for a good pair, and they pointed out that disney ceo bob iger was even on stage touting the new apple goggles yesterday, and because we're cnbc, we booked that analyst laura martin on "overtime," a conversation you won't want to miss at 4:00 p.m. eastern. >> you are awesome for doing that. >> thank you we are just getting started on this special edition of "closing bell. up next, the big risks of ai the co-founder of deepmind, and a pioneer in artificial sp intelligence he's raising the flag on the dark side of ai and the best way to contain those threats that rare interview is just after this break

we are live from san francisco today. you're watching "closing bell" right here on cnbc

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for all of the potential powers of ai, some say the risks shouldn't be underestimated as the world essentially undergoes a dramatic technological transformation our next guest is a pioneer in the space. mustafa suleyman is a co-founder of deepmind which was sold to google in 2014 he's now the co-founder and ceo of inflection ai, also the author of "the coming wave" that is out in september. we feel lucky to have this

interview with you today. >> it's great to be here thanks for having me. >> your book is essentially a warning of sorts about this coming wave of which you say, quote, we're not prepared. >> i don't think we are prepared, and i think it's important for us to be super aware that this is going to be a dramatic transformation. the benefits are going to be unbelievable i mean, we are on the cusp of unleashing an intelligence revolution think about it over the last 20 years, we've all got access to smartphones and laptops, whether you're a billionaire or you earn $20,000 a year we all get to use the same cutting edge hardware, and over the next ten years, maybe 20 years we're all going to get access to intelligence in your pocket the best, the smartest, the most incredible tool you could ever imagine, and that's going to change everything. >> i think we're trying to, you know, get our arms around what it's really going to mean, and the obvious thing that you come back to, and others have made the comparison is to the invention of the internet of

which you say one perspective of how to sort of visualize what this is going to look like, in 1996, 36 million people used the internet in 2023, it is 5 billion that's the kind of trajectory we should expect for ai tool, object much, much faster those are astounding numbers. >> i think that's right. everyone is going to get access to the smartest intelligent assistant you can imagine. i'm focused on building a personal ai, and i think in your pocket you're going to have a really capable tool that will make you much better at everything you want to do. give you access to information and help you take actions. >> you have been very vocal too, to this point on the fallout from what ai is going to mean for white collar workers, for job loss unquestionably, you've said many of the tasks in white collar land will look very different in the next five to ten years there are going to be a serious number of losers can you explain that more of really what you see? >> anything that makes us

smarter is clearly going to enable us to save time in certain ways, right? so there are huge efficiencies to come here, and those efficiencies will definitely change jobs. there's going to be a reshuffling of who does what and when, and i think the challenge for society is trying to make sure that we make that transition in the smoothest possible way, and that means we're going to have to catch the people who are unable to retrain as quickly as they will need to or even relocate to places where there are jobs. >> i mentioned at the outset as well, that you are the co-founder of deepmind which you sold to google in 2014, and people like brad and other investors i think are trying to understand how if alphabet had deepmind under its roof for that long, it got, quote, unquote, beaten to the punch by microsoft and chatgpt. how do you assess that >> it certainly did. they were behind the times, and in some ways, it was pretty sad because we had lambda, the

conversation at google a year and a half before chatgpt. the bureaucracy takes a while to unravel itself and get out of the knots it's tied itself up in, but it's nothing like competition from an outsider to get it straightened out. they have caught up with their own ai and i think they'll be just fine. >> i think you're wondering as an investor if they are caught up and if they ever will. >> you've heard me say that the most valuable thing google had was it owned the verb for search and discovery in the age of the internet, and i think search and discovery in the age of ai today is chatgpt, and every conversation that we're in, it's not barred, but let me shift a little bit because i think it's a really important architecture for how we think about ai. so talk to us a little bit about pi you're building an agent that bill gates said may be the biggest winner in ai that is

going to be, you know, that intelligence in our pocket to help us with our personal life everything from booking a trip to figuring out how to better educate your kids. so talk us to a little bit about why you think that's needed on top of chatgpt in order to drive our personal lives forward >> and i did try it out by the way, before you came it's very clean. it's easy to use certainly it's going to remind some of gpt just in the nature of how you operate it, but that is inflection ai that's your new company, and pi is the product, personal intelligence. >> think about it like this. this is the beginning of a revolution everybody is going to have ais businesses, brands, organizations, ais are going to be representing their values trying to sell you things, persuade you of things, and be super useful in their own ways i think everyone is going to want their own personal intelligence, aligned with your interests that can find you great deals and of course, your

ai will be talking to other ais to find you the best possible way to solve the problems you care about >> you've described it as your personal co-pilot. right? is that how we -- >> absolutely. listen everybody who's watching, if you don't have these apps, chatgpt, you know, pi, character on the front page of your home screen, if you are not playing with them, the people who will be first displaced are people who don't embrace the tool of knowledge in your pocket just like the people who didn't want to use google or mobile phones at the start, and to us, this has become a completely important way in which we do business talk us to about what patterns of use are you seeing with pi today? when bill gates mentioned it -- >> who by the way is an investor. >> that's right. >> so when gaetes mentioned, it would be the successor to

search what are use cases, the early use cases that you see paid dog fooding? >> they're using it to make tough decisions in their life and they want to think through both sides of a problem. people are using it to pursue their passions and hobbies sometimes your partner isn't as interested in your golf hobby as you might be, but pi is always there to be interested in you are -- your passion. i definitely see it evolving to be a chief of staff for your life imagine a scheduler, an organizer, an advocate, a buyer, a booker it's going to take all these actions for you on your behalf and make things much, much easier. >> nobody ever woke up in the morning and said, you know, i'm going to new york and i need to book a hotel i just wish i could go to the internet, type in, you know, new york hotels in google, give me a long list, and then i got to click on something in that list and it gives me another long list, and then i got to click on that and do all the research myself what you want to do in the morning is wake up and say, hey. book me the cheapest hotel for

these dates and oh, by the way, i want a room with this type of view and restaurant -- it automatically happens. how far away is that from happening as the way brad described it that's how people generally think this is going to evolve. >> i think this is going to happen within months today we have access to information distilled in succinct and precise answers you don't go to use the websites and click on blue links. you ask ai for access to information. over the next 12 to 18 months, that ai will use other ais, make bookings, plan and schedule just the way brad said. we're on the corner of this. >> i want to say something roger mcnamee said he said, threats of extinction are a rmarketing ploy to distrat

from the quote, unquote, ai products today ai equals automation how do you respond to somebody like that? >> that couldn't be more wrong we have been working on these technologies for over 15 years, 20 years in some cases and we've seen a steady improvement across every single area and every trajectory, and many, many businesses have this in production in use today saving tons of money, making their businesses much more efficient. >> elon musk was an investor in deepmind >> that's right. >> he and others, and even sam altman have said, we need the brakes on what's happening here because the advances are too potentially explosive to society in both a positive and negative way. do you agree with that >> look, naturally this is going to be difficult to predict things are moving really, really fast even those of us who are developing ai at the cutting edge are sometimes surprised at the pace of progress i think it is important to be cautious and respectful about

the sense of society and not just those who are going to be winners. >> it's great talking to you and i appreciate you being here. when your book is out, we'll have another conversation and certainly do this, i hope on a regular basis. >> look forward to it. >> download pi >> mustafa suleyman joining us here next up, we're counting down to the close with the biggest movers plus, neeva co-founder joins us, and we'll get his take on the enterprise space we'll talk about what it means outhour life, and we'll talk abt e life of business as well we're live on "closing bell" and we're right back

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shape tomorrow today. we're just about 30 minutes away from the closing bell let's get back to kristina for the key stocks she's watching into the close >> i was thinking about the song to become one by the spice girls and this is how i'm going to start hi script. the pga tour agreed to merge with liv golf, and they've

agreed to put their differences aside, but no name just yet. the merger driving golf names much higher. golf maker products are up about 4.5% right now, but the volume is low top golf callaway is up about 4%, and we'll bring that up in a second you have nike and sporting goods. they have exposure to the golf products, sponsorship deals and athletes and that's why all of these names are climbing higher. that's it, scott >> all right kristina, thank you. when we come back, neeva co-founder, sridhar ramaswamy joins us here. his search engine company was acquired by snowflake, and just a few weeks ago. he'll tell us what he thinks is next "closing bell" is coming right back

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we're back in san francisco. consumer ai like chatgpt has captured aour attention, but we have a co-founder for the software injury.

ramaswamy, co-piloted neeva and it was sold to snowflake a few weeks ago. excited for you to be here word was on a street a man named musk might have been interested along with others. is that true >> well, we started on the journey originally off search and early last year at neeva, we realized that like others, generative ai was going to be a game-changer we changed the game of search to providing fluid answers. we got all of this done as a two-person company, but we also knew that, like, bing and google, we're going to dance, and that was not a great place for a startup and we started looking around, and snowflake is the trusted, secure, most respected platform for enterprise data and applications we met with the team we saw eye to eye on where this could all go for the enterprise, and my team was excited. i was. the transaction closed, like,

ten days ago couldn't be more excited. >> congratulations on that what neeva as i understand it originally started as was a privacy-focused search engine for consumers. >> that's right. that's right >> of course, trying to get people to pay for something they're accustomed to getting for free is difficult, but morphing from that to the enterprise and what this tool can do for business, we got a really to understand use case for how our lives will be changed. how will my business life be changed? >> just stepping back, without getting into, does ai mean apocalypse or world peace, what it clearly already delivers is an amazing new way to track with computers. so far, all of us had to follow the rules of the computer of how we attracted anything, and like all of us can remember the frustrations with any travel site or app we use it's a pain. what large language models do is

it lets us talk to these programs in natural language, and now think about it when you combine that with the functionality that's already available, whether it's a search api or some business api or data analytics, you will unlock the functionality. whether it was doing email or analysis or figuring out what exactly are the things you need to do for getting a, you know, particular sale done, these co-pilots are always going to be there, and you're going to converse with them, and you're going to remember the context of what you are doing just like mousseustafa was talkg about pi being your assistant. you have the function, and that's an enormous task. >> the one way to think about this is the largest market in all of software 23 years ago at the start of internet was data bases. they were worth $1 trillion. think ibm, microsoft, ororacle,e

cetera why are they valuable? businesses leverage them to make better decisions to tell you whether to merchandise black shirts or what your sales forecast will be tomorrow, if you should price a product. you had to learn specialized knowledge to store and extract the data, and what's interesting to us today is we're tearing down the walls between those data bases so that enterprises can capture all this data much like is happening with the consumer, and then you have a new, emergent class of businesses that are building that pi. think of that personal intelligence, but for the business >> that's right. everything as i said, from email to how you buy products, to how you approve things, how you analyze what's going on with your business is going to be changed in a big way, and so there's a huge market for brand-new applications that are going to be built on top of the things that are existing, and this is where we're going to find this as the reason and why snowflake is such a big deal. >> mustafa suggested when, and

everybody wants to know when are these advances going to be at my fi fingertips when will my co-pilot be enhanced he said months for these technologies what about these business applications >> well, so i think the pace of change is something that none of us have quite gotten used to i took kind of two weeks to focus on just getting the acquisition done >> ai can't do the paperwork >> so many things happened in two weeks and i said, i have to spent two weeks just catching up i think you'll see these copilots roll out, and we have a conference skopgcoming up in ves with lots of announcements and there's the pace of change and getting the first advantage will be incredibly critical >> you used to run google advertising for 15 years.

>> that's right. >> why did they let you out of the building, and do you think that they've lost in the arms race of ai how do you just dge that >> mustafa touched on this a little bit all companies get complacent they get worried about change. absolutely google had the best technology in ai five years ago, but it's a different matter to apply it and wheel it into a product that you and i want. to me, they're still magic in creating software products even the open ai people if you asked them, they would be, like,, you know, we did chatgpt and didn't think it was going to blow up like this. there's magic there, and when you combine things like caution and worry, like, what if we get it wrong in 1 out of the 10 billion times somebody is going to use it? that's theworry that google ha that put it further and further behind it is not obvious to me that just by applying that money and the manpower that they had, that they're going to beat chatgpt.

brad knows this. first advantage is very real chatgpt is on my home phone screen if i need to put something else there, it has to be ten times better that's why these things matter innovation matters, and desperation produces amazing things for all of us >> if he's watching the interview right now and he's saying, this is ridiculous we haven't ceded anything. they may have gotten the first mover advantage, but we're alpha get and we have 90% of search and we are fully committed as we head repeatedly of late to being a major player your response is >> can you save you, sridhar >> go for it >> everybody in the ecosystem wants a healthy google when i was on your show, i said, listen google allowed their moat to be breached by chatgpt. that is today in ai. however, google has immense

resources, imminence technical capabilities they're running it fast and getting it organized and i for one am rooting for google because competition within this ecosystem between microsoft, between meta, between open ai and google will make it all better, but they have a long way to go. just being the biggest and owning a monopoly and search doesn't entitle you to owning that monopoly in the owning of ai. >> he saved you for 30 seconds how would you address it before i go >> competition is important. competition is good. a chat-like interface for getting at information obviously presents a new paradigm in how we get at information. it's not the age of links. we should all be happy that chatgpt is out there, and google is competing just as hard. sydney is there. i think this competition is important. if anything, this is a consequence of ten years of google search not having any competition. that's the real take of it. >> fascinating conversation. i appreciate your time so very much. >> thank you, scott. >> we'll talk to you again. this is the last chance to weigh in on our twitter question do you worry about your job with the emergence of ai?

you can head to @cnbcclosingbell on twitter the ruesults are right after thi break.

let's get the result of our twitter question do you worry about your job with the emergence of ai? the majority of you, 69%, in fact, said no, i do not. up next, cracking down on crypto, coinbase coming under fire we have the details. what's at stake when we take you inside the market zone. and from chewy to gamestop, to bed, bath & and beyond, we look at ryan cohen do not miss making of the meme king it's tonight that premieres at 10:00 p.m. right here.

that's 10:00 eastern right here on zcnbc "closing bell" right back.

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make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. we're now in the market zone, and cnbc's senior markets commentator mike santoli, and brad gerstner here plus, kristina is back on the lawsuit against coinbase, and phil lebeau on the latest 787 dreamliner we'll get to you, mike apple didn't do anything on the backside of wwdc, and the market action by and large was pretty muted. >> we've gotten a lot of light

shined into some of the more neglected corners of the market. they're benefitting this imbalanced market. it's kind of being rectified at least for a couple of days now the easy way rather than the hard way which is to say small banks, scyclicals rally a bit. it feels like a forced relaxation meaning you've got some short squeezes going on you have people feeling underinvested. you have the volatility index at 14 point almost nothing, and some haven't gotten bad enough to redeem. it's a bad rush to cash, and people felt very comfortable sitting there, getting 4% to 5%, and now the market is making them feel a little uncomfortable. we'll see if this is kind of the culmination of this move if we're get a little bit overbought or not, but the

market rules are in effect. >> crazy brad seems to think at that 14 i want to go apple with you. you don't own it >> nope. >> when was the last time you did, if ever and why don't you now? >> well, i mean, listen. i think apple is one of the most covered stocks in the world. it's a ubiquitous product and a fantastic product, but the reality is i don't see a lot of alpha that we understand about the business it looks like a 10% to 15% irr sort of business we saw a lot of things mispriced to start this year nvidia trade at $125 at the start of this year people thought, you know, revenue was going to be bigger, and we look for companies that we'll have a perception and something is going to happen in order to change that perception. we thought apple was pretty well understood, and it leads to a lot of conversations about what meta is doing with oculus. i don't think it changes the narrative. >> kristina, coinbase and the s.e.c., tell us more >> the s.e.c. is accusing

coinbase of operating since 2019 without having registered without regulator, and there are 13 crypto ssets. not bitcoin by the way they were considered securities by the regulators and they're calling the crypto platforms a web of deception coinbase retaliated by saying this is an enforcement-only approach, no clear rules they have been saying this for awhile too, but they plan to operate business as usual. the problem is they're going to have to figure that out quickly because the alabama securities commission is giving coinbase 28 days to show cause why they should not be restricted from selling, quote, unregistered securities in the state. this is the cofounder also accusing them of running an unregistered platform in the u.s. and this is an important point. very specific. co-mingling, aka, misusing

customer funds that's the similar there coinbase is going after not registering certain securities it's not registering certain securities as well as misusing customers' funds and not telling them where that money went. >> kristina, thank you there was a period of time where crypto was tracking the nasdaq that's been broken you have no crypto exposure from best i know. >> yeah. >> why >> well, you know, i mean, again, there's this uncertainty surrounding crypto, and listen i think coinbase has been one of the best actors in the crypto ecosystem. i think there's a lot of blame to go around here, including the s.e.c. which for years has countenanced this. i can't believe it's 2023 and they're just giving guidance today on what is registered and unregistered to coinbase so, you know, i think that coinbase will do what it takes in order to be, you know, the most legitimate and registered cryptocurrency in the united states they have an incredible team and board, and i think they're trying to do the right things

but when i look at the innovation and i compare it to the tectonic plates that we have been talking about the entire time on this show,i only have so much time we only have so much money to invest so i'm choosing to focus it on things like software, the modern data stack, ai, et cetera. >> people look now and say, ai has a little bit of the wild west they look at crypto. they say, okay ai has a lot of the wild west with not a lot of sheriffs around >> right >> they're still trying to figure out what all this crypto stuff is based on. >> you and i talked about this many times over the course of the last two years crypto is a supercycle valued at its peak, i think the $3 trillion market gap for crypto searching for a use case, right? what do you do with this stuff other than speculate, you know, et cetera, and there's a lot of work being done in order to bring that use case to the fore, but ai, every single business, we were just talking from writers to engineers, et cetera, they're getting real value in their lives today from ai. i don't have to make up what

that's going to be i know what it is. >> phil, the 787 dreamliner issues what are they? >> this comes to a fitting on the 787 dreamliner as they have been found or been notified by a supplier that they may not be in conf con con conformance. it may have to slow down deliveries of dreamliners at least in the near term boeing says airplanes found to have a nonconforming condition will be reworked prior to being taken into delivery, while inspections will affect timing of 787 deliveries. at this time, we do not expect this will change our full-year guidance regarding 787 deliveries two important points here. one, this is not a flight safety issue, scott planes in service will remain in service. also, their full-year delivery guidance is 70 to 80 dreamliners. they expect to still hit that mark this year

nonetheless, shares under pressure, under another manufacturing question that has been raised at boeing. back to you. >> we'll spend our final moments with brad. the markets in general, this incredible run that we have had in tech, i know your own performance has been off the charts as a result of this this year does it have legs? what does it depend on if it does if the fed raises rates again? rates go up? does that undermine it what's the story >> right well, remember i came on your show, and we talked in 2021 about how far above the ten-year average that multiples are gone in response to 0% interest rates. 2022 was a huge reset. we had parabolic in rates and babies got thrown out with the bath water you know, the end of days for meta, like, everything was done as far as the market was concerned. markets overshoot in both directions we overshot on the way up and on the define

while the percentage gains feel big this year, realize we're still trading below the ten-year average for multiples for software and internet stocks this is not 2021 and 2022. now the question is are these things real? how fast are the earnings going to go? i think ai is going to drive massive productivity gains and margin expansion for these businesses as they tighten their belt and get fit and leverage ai to drive down costs and up revenue. i think that the, you know, the future looks great for technology, and then i look at, you know, the rest of the economy, and it's going to have to fight through the headwinds of high interest rates that are going to stay higher for longer. >> as the community out here, the venture community fully recovered from svb, have they kro recovered from all that happened >> i would say and we were talking as we came on. svb was part and parcel of a

broader thing of silicon valley. we got caught up in the age of excess too large funds, the industrialization of venture, et cetera, and so we have been through a lot over the course of the past two or three years. i will tell you there's more to go we have a lot of companies still at too high of valuations. those need to get reset and come down, but remember, the same thing happened, you know, in 2001, 2009 we're at the beginning of a major platform disruption, and i'm grateful that the venture community out here can help drive forward this innovation. >> it's been great having you. this has been super fun throughout our special ai hour with brad. of course, the founder, ceo, cio of all things under the sun. >> janitor. >> mike santoli, an interesting perspective you just heard on valuations from brad too >> yeah, and it is important to recognize that a lot of this move we've seen in, you know, nasdaq 100-type stocks has been mean reversion and catch up to the rest of the market it's not all the way back.

i think -- i take less of a view that interest rates are as instrumental to exactly what the valuations are, in that area it's just a lot of the ebb and flow of the, you know, the enthusiasm about earnings power, longer term, and whether people are under or overinvesting in these things, and they seem to get cleared out in terms of positioning before this year now maybe more imperative. maybe they have to rest a little while. they've done a lot of this work that the market had ahead of it this year. wouldn't be surprising either if the overall markets started to maybe drift a little bit we are a week out of a fed meeting. we think they're going to skip this meeting in terms of a rate hike, but you don't really know, so you might have a little bit of that wait and see ahead of time as we mentioned before. the volatility index has ticked below 14 to me, mostly reflects what's going on in the index itself at the steady levels with a lot of divergence beneath the surface and people aren't feeling rewarded for not having hedged themselves, and people

are sitting on a lot of cash still, scott. >> nice little move here too at least to get into positive territory. not going to be a big day by any stretch, but it's no longer red for the dow, the s&p the nasdaq will go out for a leader that does it for us. i will see you in new york tomorrow, and i can't wait for that for now, into "overtime" and jon fortt. looking at your scorecard on wall street, winners stay late welcome to "closing bell overtime." i'm jon fortt. morgan brennan is off today, but we've got a big show coming your way. coming up, we'll talk to laura martin who says apple should buy disney following the launch of the new vision pro headset plus we'll talk to former s.e.c. chairman jay clayton about the state of crypto after the news that they're suing coinbase for operating as an unregistered broker and exchange. we will get in