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tv   Bloomberg Technology  Bloomberg  August 31, 2021 11:00pm-12:00am EDT

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>> from the heart of where innovation, money, and power collide in silicon valley and beyond. this is "bloomberg technology" with emily chang.
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emily: coming up our, shares of zoom plunge almost 17%. it has been a lifeline for workers, students, friends, family during the pandemic. the return to work is not happening just yet. many companies changing plans as the delta variant takes its toll. we will bring you the latest updates on how work is shifting. and wildfires continue to rage across the pacific northwest, with the caldor fire quickly approaching california's lake tahoe. how firefighters are using ai and machine learning to fight these fires faster than ever before. we will get to that in a moment. but first, it was another day of market hovering around record highs. for details, let's bring in ed ludlow. ed: markets taking a pause off that news from the federal reserve friday. the s&p 500 don't attach, a 10th
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of a percent. valuations at the s&p 500 at the highest level since 2000. what happens to the big cap tech stocks as the federal reserve unwinds? an area of outperformance, the nasdaq golden dragon index. most of the u.s. companies that have their business in china are up 3.9%. it has been choppy trading recently with all that commentary around china's crackdown. with bitcoin falling around tuesday, we saw some pressure on the bloomberg crypto index. crowdstrike reporting earnings after the bell. you can see the stock is down 3.6% despite the company upgrading its full-year forecast. let's look at some of the biggest points movers of the day in terms of big cap tech stocks in the equity market. apple down 0.8%. there was news of course about difficulty in producing the apple watch. we will cover that later in the show. and then crowdstrike, as i said, snapping nine straight days of gains. also, weakness in some other stocks.
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emily: thank you so much for that round up. as i mentioned, zoom shares taking a big tumble after fell the company gave a forecast that fell short of some analyst estimates. this raising concerns about how the videoconferencing platform can maintain revenue growth as schools and businesses returned to in-person operations. for more, i am joined by the cfo of zoom. look, life is far from normal. the pandemic is dragging on. but investors are concerned that -- what is your message to investors today about where growth is going? kaylee: to understand growth and the future of gloom, you have to understand that we really had two for segments of our business. the upmarket, the direct part of our business is doing very well. evidenced by many things we have talked about.
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first, we crossed over first billion-dollar quarter and we had 54% year-over-year growth. lots of momentum in zoom phones. we also had a big upsell in a financial services company that which moved into now being our new largest customer. so very excited about the growth there. the headwinds that we are seeing, which is what you're seeing reflected in our rest of the year guidance, is in our mass-market business. this is an area that grew dramatically during the pandemic. pre-pandemic it was 20% of our revenue. in q2, it comprised a large segment of our revenue. this is a segment of our business is where people are starting to move around the world again, where individuals and small business owners are traveling. hopefully many of you are moving around the world, and being able to socialize in person and doing
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in-person happy hours and dinners rather than over zoom. that is where we are seeing the headwinds, and the price disruption now reflected in the guidance. emily: i know you have been on the phone all day, including cathie wood, whose ark has a big stake in zoom. what does normal look like? what is your outlook for new normal and how much people will be using zoom on a regular basis when normal, if we can call it that, normal operations return for a sustainable period of time around the road? kelly: properties like google are delaying their back to work. this is what we are hearing from many of our market customers. we are seeing really strong growth in our renewal. seasonality, we saw a very strong performance around that in q1 and we saw that continuing in q2. we also have companies thinking
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about, what will it look like when we go back to work? and they are really preparing for a hybrid work approach. that means an opportunity for zoom rooms, our conferencing. we saw cash rates double from q1 to q2. we are excited about the potential there. as well as the phones doing well. that is what we are really focused on for the long-term strategy of this company. in june, we also -- sorry. emily: thinking of the long-term strategy, you just made a huge acquisition in 59, $14.7 billion , a cloud customer software maker. will we continue to see you do that more to build out what zoom can offer? kelly: we are in that critical transition phase, from being a meeting company to a platform company. i just talked about the products
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that comprise that -- zoom phones, and the contact center, a really important part of the extension into the platform, and that is where we are excited about the potential of 59 going to the zoom family. we will continue to look for other opportunities to extend the platform. zoom maps is another great example. we have 50 more apps in the marketplace today. these are where third-party apps are phasing that experience into your zoom meeting. that extends the way that you can work and use the platform every day. emily: facebook, meantime, just unveiled some interesting new virtual reality features, the artwork rooms. they think this is the future of not just video calls, meetings. how is zoom thinking about virtual reality? do you consider what facebook is doing here competition? kelly: we don't consider that
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really competition. we look at virtual reality, we always like to see how people are innovating around the space. we have worked with other virtual reality companies that extended through ai for example, in things like surgery training. people doing that over zoom. it is exciting, especially in a time when everybody is working remotely, how you can extend the capability of the platform and what you can do with virtual reality. emily: you are adding some new features like a committed reactions for the ipad. if someone raises their hand or gives a thumbs up, the icon will show up on the screen. talk to us about that and more features like that we can expect to come. paul: that goal -- kelly: the goal we have always had for zoom is to make zoom meetings even better and
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effective than in-person meetings. i think you have already seen that happen in terms of efficiency, using ai for things like transcription. then things that are missing, what you are highlighting, how you turn a natural gesture. the one we always talk about, how do you give somebody a virtual hug? we are constantly thinking about ways to bring those interactions or experiences into the meeting so you feel like you are close to that person. emily: zoom cfo kelly steckelberg, thank you so much for joining us. we always appreciate you joining us to tell us about your progress. meantime jury selection has , begun in the trial of theranos founder elizabeth holmes at a she faces up to 20 years on san jose court. she faces up to 20 years on charges of defrauding investors and patients over her failed blood testing startup. the company and holmes claimed
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theranos could run tests from just a small amount of blood. holmes' lawyers will argue that she suffered a decade-long campaign of psychological abuse from the company's former president and form romantic partner. coming up apple facing delays , over the production of one of its newest devices. we will find out why, next. with our very own mark gurman. this is bloomberg. ♪
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emily: south korea has become the first country to force apple
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and google to open up their app stores to other payment systems. the move could potentially set a precedent for their operations in other countries. both companies face legislative measures here in the u.s. over dictating terms in marketplaces, including the exclusion of alternative handlers. apple responded to the korean ruling by saying it undermines protections and puts users at risk of greater fraud. apple may need to delay the release of its newest smartwatch due to production issues. sources have told bloomberg that the manufacturer is facing challenges over the design. for more, we are joined by mark gurman. mark, what issues is that apple watch actually facing here? mark: so my colleagues and i are hearing that there are late in the game production issues. related to the new screen. right now, they are 40 and 44 millimeter configurations. these will be going to 41 and 45 millimeter.
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but it has caused some production headaches related to a new material, a new layer that they are putting below the cover glass to bring the display component in the screen -- closer to the screen so it looks much clearer. they are looking through that right now. the question i have is how this will impact consumers. does this mean a further out announcement, does it mean more supply constraints, what is the big picture here? emily: all right, we will keep posted for your reporting on that. meantime, you had an explosive , scoop over the past 24 hours that apple is considering adding satellite capabilities to the iphone that could be used in emergency situations. i can tell you as a mom, you definitely have those moments when you are in the middle of nowhere and you think to yourself, what if something happens right now? what would we do? how would we get help? what are you hearing?
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mark: that is exactly what this is, this is not turning your phone into a michael douglas "wall street" satellite phone to call in stock trades. this is a feature specifically for emergency situations. the first component is called emergency messaging over satellite. what this will do is, if you have no cellular coverage and you are able to connect to a satellite, you would be able to send short emergency text messages to your emergency contacts. whether that is your parents, your families, your dock, etcetera. the second feature is more all-encompassing. this is a mechanism to report an actual sos emergency. whether you are in a plane crash, in the middle of the ocean with a boat crash, a car crash on amonte. that is what this solution is four, to call search-and-rescue. i think this would give the iphone a leg up for a certain array of users were in those situations are little more
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frequently. emily: interesting. mark gurman, thanks so much for that update and great scoop. coming up, as wildfires continue to destroy large swaths of northern california, we are going to take a look at how satellites and a.i. are playing a crucial role in fighting the new normal for the west's deadly fire season year after year. this is bloomberg. ♪
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emily: firefighters are continuing to battle flames that are pushing closer to lake tahoe in northern california. the caldor fire has been burning since august 14, destroying more than 187,000 acres and sending thousands of people fleeing after evacuation orders were put in place. for the latest, i am joined by mark. he is covering the story for
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bloomberg news. mark, what is the latest here, and just how big is this fire going to get? mark: emily, thanks for having me on. so, as of this morning, the fire was about three miles south of south lake tahoe, which is a resort town that borders the southern edge of the lake. fire officials i spoke to this morning were quite concerned that the fire could spread into the city today. there is a forecast for very gusty winds and dry conditions, and that forecast extends through tomorrow. so they have got a real battle on their hands. the main concern here is that the winds could blow embers into the city and start spot fires that could then turn into their own blazes and burn through the town. so far, there is no report of any fire burning in south lake tahoe city itself.
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emily: at this point, what is the likelihood that the fire could get to south lake tahoe? that, of course, is the main concern. mark: yes, it is. it is hard. calfire officials have not been able to say, give an estimate of their ability to keep the fire out. they have crews stationed throughout the city and throughout the southern part of the resort area, trying to keep the flames at bay, so it is very much touch-and-go. and kind of a wait-and-see situation. they have been able to keep the fire out of the out sets. that has been a good sign. emily: thank you so much for that update. one of the biggest issues facing firefighters is knowing where
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the flames will go next. the department of energy's pacific northwest national laboratory has developed a system that incorporates satellite imaging, artificial intelligence, and machine learning to project wildfires early in predict the path they will take. i am joined by the product manager for radar fire, this new technologically advanced system. neil, thank you so much for joining us. as i understand it, traditionally, firefighters are flying over blazes at night, drawing maps of where the flames are, then using that in the morning to determine where to fight the fire. how would your technology change that process? >> so, emily, you are correct. today there is an air agency fire center that dispatches planes to gather these infrared images overnight, and they to human analyst drawings. they feed not so much hand drawn, but computer drawing maps
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to incident commanders. the challenge is always to know, where is the fire now, and where is it going in the next hour, two hours, three hours. you heard mark mentioned spot fires, how fast can i know if they are jumping out of the fire, whether it is into infrastructure or just into another part of the forest? the faster i can get to the spot fire, the more i can handle the damage, right? what we have done is take this system, which is in the prototype production stage. it is starting to be used by the forest service, and for some of the selective and more advanced incident commanders, take satellite imagery from a variety of satellites, public access, open access satellites, that is higher resolution than most of the geosynchronous satellites used for the weather and what have you today. and feed that data coming from
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the satellites into some algorithms, into some machine-learning trained pulls models out where is the fire , right now. better, faster, higher frequency observation of where the fire is. and in the future, use that information, that higher frequency input information to predict where it might go, including additional information about whether we end and other features, fewer conditions and what have you. emily: so, in the future, could you tell us with a relatively great certainty whether the fire will get to lake tahoe or not? >> within a certain time envelope, likely. it is a little bit like predicting the weather. the weather predictions today are pretty good for let's say 72 hours out. beyond that, it is a little bit to speculative. same problem here. predicting where the fire is going to go for the next three, four, maybe eight to 10 hours, possible within a bound of
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certainty. beyond that, harder to say. that still gives people potentially a much better warning as to, hey, this fire is going to get to your city boundary, you need to either set up a protective line or think about evacuation picker. emily: if you look at a map of california, there is something like 100 fires happening at the same time. of course, we are dealing with climate change. but in terms of resources, why can't we seem to get these fires under control fast enough? neal: that is the challenge. regardless of the cause, the scale of the firefighting problem now, in the last several years, has dramatically increased. they just don't have the resources in terms of aircraft to fly fires, or firefighters to fight them. or to get to them all. so the question is, can we scale the observational capabilities and protected capabilities up.
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this system aims at doing that. we take a look at the entire western united states using these satellites, which, i don't have to put aircraft in the air, they are already up there, they are bringing the data as often as they fly over. as often as they fly over, we can get data from them for spotting these fires and giving the ground crews information about where they are and potentially where they are going to go. emily: now, this technology is being used in all kinds of natural disasters, from floods to hurricanes, and in fact, it is being used right now in response to hurricane ida, to, as i understand it, assess the damage. how exactly is it helping their? neal: that is correct. i work with a team of researchers led by andre coleman. you will be talking to him probably, since i am the project manager and he is the principal investigator. they are currently involved
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in similar information for flood extent, road closures, and more specifically, because of the this is a department of energy program, what is the damage to critical infrastructure? there are a million people out of power in louisiana. the question is, where is the electrical grid damaged such that we can send crews to fix that damage and get people back online. so right now they are taking similar kinds of satellite imagery. . the storm has passed. . the clouds are starting to clear. you can do these kinds of damage assessments, critical infrastructure damage assessment , and flood extent, what roads are closed, using the same technology. different algorithms and different approaches, but roughly the same basic idea in terms of technology. emily: fascinating. i am so glad to hear that this technology is out there and becoming more widely available. neal oman, thank you so much for
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joining us, and good luck out there. coming up, move over, aws. microsoft and google, there are more and more cloud startups taking to the sky. we will get the 360 degree view next. this is bloomberg. ♪
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emily: welcome back to "bloomberg technology." i am emily chang in san francisco. let's get to the financial markets. ed ludlow take a look at the money pouring into chinese hardware startups. ed: really interesting, the narrative about china climbing down on internet companies. chinese hardware startups seem to be the place to put money. 5.6 billion dollars flowing into chinese hardware startups for the first six months of the year, already eclipsing the hole --eclipsing the whole of we
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2020. also see this kind of illustrated in the public markets as well. the i.t. stocks actually outperformed drastically the communications sector. because as we know, the communications sector includes names like tencent, one of the targets of the chinese regulatory crackdown, it has seen outflows. if you come back into the studio, what is really interesting is that overall, the venture capital flowing into china is still significant. $56 billion in the first half of this year. we hit 75 billion dollars throughout the total of 2020. we talked recently about investor concerns for companies in china but if you look at the private market, there seems to be a lot of opportunity. emily: thanks so much for that update. meantime, as cloud computing continues to push boundaries, most customers are still turning to the big three -- amazon, microsoft, and google. but the market for new cloud
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startups remains hot, with new opportunities abounding. greylock just came out with a new report looking at all things cloud called "castles in the cloud." jerry chen, partner at greylock, joins us with more. what are the up-and-coming in castles in the cloud right now? jerry: the castles project started with, how can you beat amazon, google, and azure in the cloud game? they are so huge and they have so much revenue. is there room for vc's to keep investing in these markets? we have seen companies raise huge amounts of money and compete successfully head-to-head against amazon, google and azure. companies like databricks, snowflake, elastic, security companies. a lot of companies out there that are able to do something like compete head-to-head against amazon or just multi-cloud across azure, google, amazon. so a couple of ways to play, either choose a market or strategy.
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emily: i will actually be interviewing the ceo of databricks right after you. thanks so much for the layup. when it comes to big incumbents, amazon, google, microsoft, do you see the likelihood of a real disruption there, one of them being dethroned, if you will, to use the metaphor? jerry: dethroned, to use the castle metaphor, i don't see a fourth or fifth hyper scale cloud provider anytime soon. clearly, other geographies will have local prominence, but in terms of these hyper scale clouds, the big three are pretty much entrenched. you might have a fourth or fifth cloud provider, like oracle. i think the next two years start to look very different. you are looking at decentralized. there is a bunch of talk of blockchain and web 3, decentralized clouds. vertical clouds. financial services, gaming, health care.
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third is the edge. this whole decentralized edge computing can be a trend as well. companies do very well at the edge with their own network. cato networks, a company that does a similar approach. pushing compute to the edge, closer to the end-user. so i don't see a hyper scale cloud coming anytime soon, but there are certain ways to play against the big three in certain strategies. emily: when it comes to where greylock is placing its bets, where do you think the money is at? where do you think the most innovation will come from when you look at startups navigating this new world, or disrupting this world? jerry: there are two plays. either you pick a market that is super interesting. we are betting on a company called kronos fear. you have heard of companies called data blog. kronossphere goes head-to-head against existing leaders but also gets large crowd vendors. the second thing we are looking at is --.
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clearly, the cloud vendors have huge reach, scale, developer attention. but if you build something that is hard technology, you can crack the mode. i think databricks and snowflake have done a good job. but in the move to real-time analytics,, you will see companies taking an approach and saying, where is the great market, where is an area i can build really hard ip and have technology advantage? i still believe you have deep ip, you can still win against the big goliaths out there if you are more david. emily: the cloud is obviously huge and getting bigger, in part because of the trend toward hybrid work, the fact that more companies will be working in the office and at home potentially forever. i am curious how you think this will change silicon valley for
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the long-term. i have spoken to your partner, reid hoffman, about how in the last 18 months, you have been doing deals where you are actually not meeting the entrepreneur in person. now we are seeing all of these huge companies pushing back their returns to work. facebook, amazon, google, pushing back to 2022. i spoke to venture capitalist bill gurley about how he thinks this will change silicon valley for good. take a quick listen to what he had to say. >> the competitive pressure to not go back amongst engineering is huge. and so i don't think anyone is going to be able to mandate it, other than the very small companies. emily: he is basically saying almost any company won't be able to get engineers back in the office. would you agree and what does that mean going forward? jerry: i think it will be a mix. you will see a category of companies that still have a strong headquarter culture.
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people want to be around the ceo and the founders. for sure, there will be a large percent of the workforce that won't want to go back to the office. the scale that you need to succeed as a developer or project manager for the new workforce is very different. before, in-person crew medication was a skill to have. now, written communication, asynchronous communication, video communication are important. before, a great powerpoint presenter was rewarded for his or her ability to communique. now writing memos, communicating through slack or other ways, businesses will learn on these type of tools. we learned on email and microsoft office. the new workforce will be on slack and zoom in on a whole set of tools. so i think there will be a cadre of folks back in the office but day-to-day folks who do not come in. the skills to succeed in that
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workforce looks different to the skills we have today. emily: interesting. brave new world. jerry chen, partner at greylock. thank you for taking the time. coming up speaking of highflying , cloud startups, data and ai startup databricks just raised new funds at a $38 billion valuation. the company partners with all three cloud giants. we are going to ask about plans to go public and the databricks road ahead. this is bloomberg. ♪
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emily: databricks is a data analytics platform powered by artificial intelligence. it just announced it has raised $1.6 billion, valuing the company at $38 billion. joining us now, the databricks ceo, ali ghodsi. the numbers are huge. why are you still a private company. why not go public now? ali: we kind of see this is going public six months at a time. we are allocating big blocks to the investors that are going to invest in us for many years to come. in january, we raised a billion dollars. that is reshaping our cap table. to have the big mutual funds in. and now in this round, we are super excited to have the round be led by morgan stanley. in some sense, it is kind of like a small ipo at the time. we will be public at some point. but this is something that is really advantageous for us to do in this way. emily: you were last on the show to talk about that billion dollars you raised.
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now $1.6 billion. at what point will you not be able to do this privately? what could you do as a public company that you were not able -- that you wouldn't be able to do privately, and vice versa? ali: the main reason to go public is to provide liquidity to employees. for that reason, we will at some point ipo. but it is really nice to be able to spread out the allocation of capital through the company. emily: when you are saying you are doing this to supercharge innovation, what does that mean? how do you put this money to work? ali: we are expanding super aggressively. we announced we are going to open up sites in germany for r&d. we already have our amsterdam site. we have san francisco, southbay. we announced that we are going to start a site in seattle. a lot of it is going to go to rnd. it would also go to other markets. 20 offices worldwide each of , them to make sure we are
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staffed up, that your product is localized to the language. but you make profits and can take 10 years, reinvest it back in the business, or if you have a lot of access to capital like we have, you can just do that extremely fast. emily: we were just talking with greylock's jerry chen, about the castles in the cloud, if you will, the giants that are there , and the startups that are disrupting that hierarchy. you partner with amazon, google, and microsoft. do you see one of them or a couple being disruptive longer-term, or do you see them generally holding down the fort, and data cloud startups like databricks pie? sort of widening out the pie? ali: i think that these cloud vendors are here to stay. the numbers are large. they are still growing fast. with i.t., all moving from on -premises to the cloud, i think
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all three will do well. some will do better in some areas. but there is a big trend happening right now, which is more and more software companies or enterprises are thinking, which one should i pick these three? i don't want to maybe pick. let me hedge my bets. i will have my software work on multi-clouds. lots of tailwinds for companies like databricks and others that are multi-cloud. so that is definitely something you are going to see more and more of, because they don't want to risk and pick the wrong crowd . they want leverage. it can be pretty costly to spend all this money on infrastructure, if you have multiple vendors that you can negotiate with, that is better for you as an enterprise. emily: interesting. speaking of multiple vendors, i know that companies can use both databricks' and snowflake's products and services but you actually compete. some of your product overlap. what do you think makes databricks stand out over snowflake? why would you choose databricks
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over snowflakes? ali: i think snowflake is a great company. the numbers speak for themselves. it is a data warehouse, a multi-cloud data warehouse. databricks is different. databricks is a data and ai company. it enables me to build a data lake house, where you can sort all of your data to do machine learning where you don't need to do a data warehouse four. you can do real-time work on it or you can do more and more data , warehousing. in the next decade or so, i think data warehouses will be replaced and with her and be replaced by data lake houses. emily: you think a company like salesforce and the way they do business will be replaced by the way you do business? ali: i think companies will readjust. it is a big market. your question about which vendor is going to win, it is a big market. and there are other players we
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have not heard of yet. jerry mentioned some. some of them will succeed as well. but i don't think there will be a place for a data warehouse as it is today. that needs to either be revamped into a data lake house or they need to do something with it. it does not make sense to have it around in the long term. emily: give us the sense of your revenue and growth productions over the years to come. my former colleague eric newcomer reported in his newsletter you are looking at somewhere between six hundred million dollars and $700 million in revenue. is that on target? ali: yes, we shared that we passed $600 million annual recurring revenue, and growth rate is about 75% year-over-year. we should remember, we are just in the early innings of artificial intelligence and machine learning. we are just scratching the
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surface. not a google, a facebook or twitter, but they will be in 10 years. i think the growth potential here is massive. it will go on for a long time. marc andreessen famously said that software is eating the world. you have software in your form, in your thermostat, in your car. i think ai will eat the software. wherever you have software, you need more intelligence, more ai and data processing, and we are company that actually combines data and ai, so i think we are well-positioned here. emily: all right, ai is going to eat the software. databricks ceo ali ghodsi, thank you so much for joining us. ok south korea's largest online , payment system has lowered its targeted ipo offering. to one point $3 billion. regulators are asking the startup to revise its perspective after questioning valuations in comparison with its peers overseas. even so, south korea has been enjoying an ipo boom driven by a retail frenzy with $13 billion in first timeshare sales. the company behind the unofficial footwear of silicon valley has filed for an ipo.
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they direct to consumer sustainable shoe manufacturer listed the size of its offering as $100 million. bloomberg reported that it is seeking a $2 billion valuation. the filing said net revenue for the first half was up 27% year on year but the net loss widened to 21 million dollars from $9.5 million in the same period. coming up, the pandemic may have accelerated use of technology, but tech company workers are still not back in the office. google pushing back its return to work date yet again as covid cases continued to surge. that is next. shares of virgin galactic rocketed on tuesday, hitting the highest level in nearly three weeks. the analyst jeffries said the company's additional spaceships diving up capacity to 660 flights per year from 36 today.
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one of the flights this year carried the company's founder, richard branson. this is bloomberg. ♪
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emily: google has joined a growing list of tech companies delaying its return to the office until 2022. no specific date has been given but in a memo to staff, alphabet ceo cinder pichai said it is -- alphabet ceo sundar pichai said it is optional to work until at least january 10. google's decision mirrors several other tech companies. all of them have pushed back their return dates to 2022. for more, we are joined by our bloomberg citylab reporter sarah , holzer. google actually late to the game here, given that the other tech companies have already announced this. but, not a surprise. i am sure this is giving
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managers and executives a lot of headaches about how to navigate this as the pandemic drives on. do we know what drove this decision in particular? >> it seems that a lot of companies are looking to peers in the space to determine their back to office decisions and timelines. google already pushed back the return to office plan to october, now it has pushed it back again and added vaccine mandates. google was always one of the office cultures that other tech companies look to, the massage tables, the napping parts, and now with this return to office pushback, others are looking to google again to say, we want to compete for staff, engineers. if people don't want to go back to the office again, they might be looking to a company like google. emily: of course, we have been talking throughout the show about how some venture capitalists are saying that they will not be able to mandate
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juniors coming back to the office at all because the competition for talent is so fierce. if one company is offering remote work and who isn't you know who is going to win and who is going to lose in that equation. what does it mean for metropolises, the city of san francisco, new york, which have , to be honest, been lagging, given that workers just do not have to be here right now. sarah: absolutely. i was speaking to people who work for the public transit system, the city comptroller's office, and they were really excited for the returns. people would be coming back to the rails. they felt small businesses would have more clients. we are seeing reports that a lot of that growth is stalling. traffic across the golden gate bridge is up to 90% of pre-pandemic levels. but bart is still depressed, under 20%.
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a service that tracks office wipes, san francisco is still lagging. all cities are down in recent months. small business owners are feeling less optimistic and what that means for their clients' health. emily: when workers do go back to the office, whether it is in january or after that, what can they expect to see? sarah: it seems like a lot of companies have been spending the pandemic thinking about physical office space, even as people are not going into the office, especially when people are not going back to the office. when people go back to google's campus, they will find a physical workspace reimagined. google has been looking at ways to create more meeting rooms so people in the office and out of the office can connect, the building more outside meeting spaces. but a lot of companies have shed office space entirely. but google has been investing in real estate. it has plans to extend and
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expand an 80-acre campus. it will be interesting to see who and what the office will look like when people actually do end up coming back. emily: a question, what happens to the commercial real estate market? the investor bill gurley thinks something big will happen. not quite sure what. you have coinbase, for example, which gave up its san francisco headquarters altogether, and other companies doing the same. sarah: yeah, a lot of employees like twitter, salesforce, airbnb, have been putting up office space for lease. so, hoping that other subtenants will come in and pick up that. but it has been hard to find takers right now. so, and it seems like, in surveys of employers and employees, it doesn't seem like people necessarily want to come back. google has received 10,000 applications to work hybrid or
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to change location. so everything will change in terms of how many people even want to be in these office spaces, which might mean a switch-up in who is occupying downtown san francisco especially but also new york. emily:, we have seen a massive population distribution in the last 18 months, we wonder how much of that will be permanent and how much will continue. bloomberg citylab reporter sarah holder, thank you for giving us that view of what is going on. tomorrow, we will be speaking earnings with the crowd strike ceo. plus, we will be joined by russ from headspace health, talking about the mental health crisis across the country. and tc morgan, to talk about their merger and the road ahead. i am emily chang in san francisco. this is "bloomberg technology" on bloomberg television. this is bloomberg. ♪
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announcer: the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. announcer: the following is a paid presentation brought to you by rare collectibles tv. the california gold rush is considered to be one of the most impactful events to affect america's young economy during its first 100 years. it has certainly had a long-lasting impression in numismatic history as well. the people


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