Elon Musk at AI Summit | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, POWER AND MONEY COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE. ED: I AM IN SAN FRANCISCO.
THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: AMD RALLIES AS THE COMPANY SAYS ITS ARTIFICIAL INTELLIGENCE CHIP WILL GENERATE BILLIONS NEXT YEAR. ED: THE U.K. SUMMIT ON AI SAFETY IS UNDERWAY. WE WILL BRING YOU THE BIG
TAKEAWAYS AND INTERVIEWS FROM THE EVENT. CAROLINE: WE WILL PUSH AHEAD TO THE FED FOR THE CENTRAL BANKS IMPACT ON AI STARTUPS. FIRST, LET'S CHECK IN ON THE MARKETS. WHILE WE DO HAVE SOME MOVEMENT AHEAD OF THE ALL-IMPORTANT DECISION, MANY ARE THINKING RATES WILL STAY AT THE 22 YEAR HIGH FOR ANOTHER MONTH, WE'RE SEEING THE NASDAQ UP. MAYBE IT IS ECONOMIC.
FACTOR ORDERS COMING IN WORSE THAN EXPECTED, JOBLESS CLAIMS TICKING UP -- JOB OPENINGS STARTING TO OPEN UP A LITTLE. MAYBE THIS IS SOMETHING WE ARE TRYING TO GET A MIXED PICTURE OF WHERE THE ECONOMY IS GOING. WE'RE SEEING SOME BUOYANCY. WE GET A HINT WE WILL SEE A SLOWING OF PACE OF GROWTH IN THE AMOUNT OF BONDS THAT WILL BE ISSUED ON THE LONG DATA AND BY THE U.S. TREASURY. LACK OF SUPPLY MEANS YIELDS
FALL DOWN. THE VIX IS LOWER AS CALMING CONCERNS OVER GEOPOLITICS. IN THE WORLD OF CRYPTO, EVEN AS THE VIX PULLED BACK, OPTIONS PROTECTIONS MAY BE LOWER BUT EVEN THOUGH APPLE MAY BE TICKING AHEAD OF ITS EARNINGS, CRYPTO JUST ON THE DOWNSIDE BY A PERCENTAGE POINT. ED: AMD COME THE BIG TECHNOLOGY STORY OF THE DAY FROM A MARKET MOVER PERSPECTIVE.
ON TRACK FOR THE BIGGEST JUMP SINCE MAY. THE STORY, THE MI 300. THE AI ACCELERATOR. ON TRACK TO START SHIPMENT AND THE FINAL THREE MONTHS OF THE YEAR. $400 MILLION OF REVENUE IN THE CURRENT PERIOD FROM THE AI CELEBRATOR $2 BILLION IN 24 AND AMD ASSIGNED THIS WILL BE THE FASTEST OF ITS PRODUCTS TO EVER HIT $1 BILLION OF REVENUE. THIS IS THE DIRECT COMPETITOR TO NVIDIA H 100.
TO TRAIN LARGELY WHICH MODELS AND FOUNDATION MODELS. THAT IS DESPITE GIVING ITS CURRENT PERIOD FORECAST $520 BILLION TO $6.4 BILLION. THE MIDPOINT WAS BELOW STREET CONSENSUS. THE CONCERN FROM THEM SEPARATELY AS A SLOWDOWN IN GAMING CHIP SALES. AI TO THE RESCUE.
THE STOCK FELL IN AFTER-HOURS DURING THE EARNINGS CALL, WEAK DURING PREMARKET TRADING, AND HAS GONE OFF LIKE A ROCKET. CAROLINE: SEO OF THE INVEST IS WITH US, IVANA DELEVSKA. I AM INTERESTED IN HOW YOU BALANCE OUT THAT NARRATIVE, THERE IS WEAKNESS PARTICULARLY DESIRE TO GET INTO INDUSTRIAL CHIPS. THERE IS WORRY ABOUT CHINA, THAT AI IS STILL THE BRIGHT SPOT. >> CAI IS A PRETTY BIG OPPORTUNITY AND IT IS NOT JUST IN THE CHIP SIDE FOR AMD, IT IS ACROSS THE BOARD. DATA CENTER SPENDING. WE BELIEVE THEY WILL BENEFIT
FROM THE CHIP BUT ALSO FROM THE CPUS AS WELL. IT WAS THE BIG SURPRISE THIS QUARTER, INVESTORS HAD EXPECTED AMD'S GUIDANCE WAS VERY AGGRESSIVE FOR THE SECOND HALF OF THIS YEAR BUT THEY WERE ABLE TO DELIVER AND GUIDE DISTILLED 50% GROWTH FOR THE DATA CENTER SEGMENT OVERALL. CAROLINE: AND THINKING ABOUT A $2 BILLION RUN RATE AT THE END. I'M INTERESTED IF YOU THINK THESE TWO PLAYERS ARE GOING TO BE THE ONES THAT TAKE ALL, WHETHER THE MARKET WILL BE SO VAST THAT WE CAN STILL SEE ENTRANCE TAKING MARKET SHARE? >> WE DO SEE NEW ENTRANTS COMING IN BUT AMD AND NVIDIA HAVE THE EARLY START SO THEY WILL BE ABLE TO CAPTURE SIGNIFICANT PART OF THE MARKET SHARE. WE WILL SEE SOME OF THE CLOUD VENDORS DEVELOP THEIR OWN SOLUTIONS AS WELL, SO WE SEE THEM BENEFITING FROM THIS TREND. AMAZON HAS SOME NEW PRODUCTS THEY ARE INTRODUCING.
NVIDIA AND AMD WILL BE ABLE TO CAPTURE A BIG PART OF MARKET SHARE AS THEIR FIRST MOVERS IN THE MARKET. ED: AMD SHARES ARE ON TRACK FOR THE BIGGEST JUMP SINCE MAY. ON THE SALE SIDE, TALKING ABOUT THE MI 300 BEEN THE CATALYST FOR THE STOCK. YOUR ETF INCLUDES BOTH AMD AND NVIDIA. THE MI 300 IS A DIRECT
COMPETITOR TO THE H100, WHICH IS ALREADY OUT IN THE REAL WORLD IN VOLUME. HOW DO YOU PLAY THIS? >> WE SEE DATA CENTER AS A WIN DOLLAR MARKET THAT WILL NEED UPGRADING. -- AS A TRILLION DOLLAR MARKET THAT WE NEED UPGRADING. THE SHARES OF NVIDIA HAVE STALLED OUT RECENTLY DUE TO CHINA CONCERNS AND ALSO PEOPLE JUST BEING CAUTIOUS ON AI BEING HYPE VERSUS REALITY.
WE DO THINK WE WILL SEE SIGNIFICANT INVESTMENTS AND THESE COMPANIES WILL BUILD A COMPOUND AT OVER 50% THE NEXT FEW YEARS. ED: THE STORY OF NVIDIA OVER THE COURSE OF 2023, STOCK UP ALMOST 190%. DO YOU EXPECT AMD'S STOP TO TRACK LIKE THE NVIDIA STORY DID WITH THE -- STOCK TO TRACK LIKE THE NVIDIA STORY DID WITH THE H100? >> NVIDIA REALLY GOT OVERSOLD AS SOME POINT IN THE CYCLE, SO A LOT OF WHAT YOU'RE SEEING IN TERMS OF THE MOVE IS TO PRESS LEVELS. WE DO SEE SIMILAR UPSIDE FROM HERE FOR BOTH NVIDIA AND AMD. CAROLINE: WHAT IS INTERESTING, YOU SET UP AND LAUNCHED SPRX TO FIND THE UNDERVALUED AREAS OF B2B INDUSTRIAL USE OF TECH.
TALK FROM A MACRO PERSPECTIVE GEOGRAPHICALLY WHERE YOU ARE WORRIED. THERE WERE SERIOUS SIDES OF SOME EUROPEAN SLOWDOWN. IS THAT GOING TO BE LONG-LASTING? DO WE THINK THAT COULD BE OFFSET BY THE INSATIABLE DEMAND FOR ARTIFICIAL INTELLIGENCE? >> INTEREST IS GOING TO BE ONE OF THAT LEAST SENSITIVE TO THE ECONOMY SECTORS. WHILE YOU'LL WILL SEE SOME
MOVEMENT LIKE TECHNOLOGY WE SEE SOME DOWNSIDE IN AUTOS, A LOT OF NEGATIVE DATA POINTS ON THE EEEV SIDE. WE SAW SIMILAR IMPACT ON SEMICONDUCTOR COMPANIES THAT SELL TO AUTOS. WE BELIEVE CONSUMER IS GOING TO BE WHERE THE DOWNSIDE IS GOING TO BE IN THE NEAR TERM, DRIVEN BY THE ECONOMY AND HIGH INTEREST RATES. SO THOSE AREAS OF THE ECONOMY WILL BE MORE SENSITIVE AND THAT IS WHAT WE ARE AVOIDING. HOWEVER, ENTERPRISE JUST WENT THROUGH A DOWN CYCLE IN SPENDING.
COMPANIES ALREADY CUT THEIR BUDGET TO A PRETTY LOW LEVEL, SO WE SEE THOSE COMPS BEING FAVORABLY POSITIONED GOING INTO 2024. CLOUD, DATA INFRASTRUCTURE, CYBER SECURITY -- WE THINK THOSE WILL BE GOOD AREAS TO BE INTO NEXT YEAR. ED: I ALWAYS WANTED TO ASK YOU HOW MUCH YOU KNOW NOW, HOW DEEP YOU GO ON THE DETAILS OF THE PRODUCTS LIKE THIS. WE LOOK AT PICTURES OF THE MI 300. A LOT OF THE WORK IN THE MARKET
THIS MORNING IS BASED ON WHAT LISA SUE HAD TO SAY. DO YOU GO THROUGH THE SPECS AND GO WITH YOUR OWN CALL BASED ON DEEP RESEARCH OR GO BASED ON THE COMMENTARY OF THE EXECUTIVES? >> WE DO VERY FUNDAMENTAL DEEP RESEARCH. WHERE WE DIFFERENTIATE OURSELVES IS WE READ ACROSS THE VALUE CHAIN. WE ARE GOING TO BE TALKING TO COMPANIES LIKE MICROSOFT THAT ARE GOING TO BE PARTNERING WITH THESE COMPASS, SMALLER CAP COMPANIES THAT SELL LIQUID COOLING TO THE DATA CENTER SEGMENT THAT ARE SELLING CASINGS TO THE DATA CENTER.
WE GATHER THESE FROM MULTIPLE SOURCES AND THAT GIVES US CONFIDENCE IN WHERE THE DATA CENTER SPENDING CYCLE IS GOING. IT REALLY IS NOT JUST ABOUT FOLLOWING WHAT MANAGEMENT IS SAYING, IT IS TRYING TO UNDERSTAND HOW THEIR POSITION IN THE ECOSYSTEM BY GETTING DATA POINTS FROM THE SUPPLY CHAIN. CAROLINE: YOU BEEN DOING THAT DEEP RESEARCH WITH GLOBAL PERSPECTIVES. GIVE US THE GLOBAL TAKE ON HOW MUCH ANDY IS GOING TO BE EXPOSED TO CHINA AND THE RIPPED THAT CONTINUES WHEN IT COMES THE TIT-FOR-TAT TECHNOLOGY. >> CHINA IS GOING TO BE BOTH A RISK TO NVIDIA AND AMD.
WE DON'T NECESSARILY MAKE GEOPOLITICAL CALLS, SO WE WILL SEE HOW THAT EVOLVES OVER THE NEXT FEW YEARS. BUT IT IS A PRETTY LARGE MARKET. BOTH AMD AND NVIDIA ARE WELL-POSITIONED BECAUSE THEY ARE REALLY THE ONLY GAME IN TOWN. THE CONSUMER SIDE IN CHINA OF ENTERPRISE COMPANIES IS PRETTY LARGE.
THEY ARE PRETTY BIG CONSUMERS OF THESE PRODUCTS. IF THEY ARE FROM THIS MARKET, WE DO SEE THE UPSIDE GOING MAYBE FIVE YEARS OUT BEING REALLY CAPPED AND WE SEE EARNINGS STALLING OUT. A FOR THE NEXT THREE YEARS, WE DO SEE STRONG DEMAND JUST FROM U.S. DOMESTIC HYPER SCALERS AND
ENTERPRISE THERE'S -- ENTERPRISERS. WE DO SEE PRETTY SIGNIFICANT UPSIDE IN THE NEXT TWO TO THREE YEARS. ED: IVANA DELEVSKA, THANK YOU FOR THAT TECHNICAL EXPERTISE. WE APPRECIATE IT. STICKY WOOD CHIPS AND EARNINGS, LOOKING AS SHARES OF QUALCOMM REPORTING AFTERMARKET.
HOW DOES THE SMARTPHONE MARKET LOOK GLOBAL? QUALCOMM IS THE MAIN PLAYER IN SMARTPHONE CHIPS. ADJUSTED REVENUES BUT THAT REPRESENT 25% DROP IN SALES YEAR ON YEAR. HAS THE SMARTPHONE MARKET BOTTOM DOWN? WE DISCUSSED IT WITH THE CO LAST WEEK. BIG PART OF THE PROCESSORS, WHAT WILL THEY HAVE TO SAY ABOUT THAT? CAROLINE: SO MUCH MORE TO SAY WHEN IT COMES TO THE WORLD OF ARTIFICIAL INTELLIGENCE. HOW YOU REGULATE IT, MAKE IT
SAY. WE GO TO THE OUTSKIRTS OF LONDON WHERE A U.K. SUMMIT IS ON ARTIFICIAL INTELLIGENCE SAFETY. WE WILL BREAK IT DOWN.
>> I EXPECT LOTS OF GOVERNMENTS TENACITY THEIR OWN AI SAFETY INITIATIVES BUT I THINK ONE THING WE HAVE TO THINK ABOUT IS HOW THIS NETWORK OF INITIATIVES COMES TOGETHER. I PROPOSED AN IPC-STYLE BODY ON AI SAFETY TO COORDINATE ON THE RIGHT STANDARDS FOR SAFETY BETWEEN ALL OF THESE BODIES JUST AS WE HAVE HAD WITH CLIMATE CHANGE, A GROUP OF THE REALLY TOP SCIENTISTS IN THE WORLD TRY TO ESTABLISH CONSENSUS ON WHAT WE ARE DEVELOPING TODAY, WHAT CAPABILITIES THESE AI'S HAVE CAROLINE: U.K. SUMMIT ON AI SAFETY IS UNDERWAY. WE CAUGHT UP WITH THE CEO OF DEEPMIND.
>> THE MESSAGE WE BRING THIS ONE OF CAUTIOUS OPTIMISM. WE ARE WORKING ON THIS TECHNOLOGY BECAUSE WE THINK IT WILL BE ONE OF THE MOST BENEFICIAL TO SOCIETY EVERYBODY DOES COME WITH A TON OF RISKS. I THINK WE NEED TO TAKE THEM SERIOUSLY RANGING FROM THE NEAR-TERM RISK TO THE LONGER-TERM TECHNOLOGICAL RISKS AND I THINK WE NEED TO START AN INTERNATIONAL DIALOGUE ABOUT THAT NOW. IT IS FANTASTIC TO SEE THIS HAPPENING. FOLKS THERE IS DIVERGENCE FROM POLICYMAKERS AND WITHIN YOUR OWN CHIP UNITY. YOU ARE AWARE OF THIS.
SAYING YOU ARE FEAR MONGERING COMMIT MAYBE REGULATORY CAPTURE GOING ON HERE. YOUR RESPONSE TO THAT CRITIQUE? THERE ARE OTHERS WHO SAY "IT IS PREPOSTEROUS TO TALK ABOUT SOME OF THESE RISKS FEAR MONGERING? >> OF COURSE NOT. SOME OF HIS FELLOW -- WE HAVE KNOWN EACH OTHER FOR A LONG TIME IN THE ACADEMIC COMMUNITY. AS FAR AS REVELATORY CAPTURE
AND OTHER THINGS, MYSELF AND ONE OF MY OTHER COFOUNDERS AT DEEPMIND HAVE BEEN TALKING ABOUT AI SINCE 2009 SAFETY. -- AI SAFETY SINCE 2009. THIS COMES FROM A GENUINE UNCERTAINTY AROUND THE TECHNOLOGY CAN GO. THAT IS WHY WE WILL WORK OUR WHOLE LIVES ON IT.
WE THINK IT CAN BE IN A CREDIBLE SCIENCE AND MEDICINE AND CLIMATE, ENVIRONMENT AND CAN HELP SOCIETY FACE SOME OF OUR GREATEST CHALLENGES. AND SOLVE SOME OF THOSE CHALLENGES. IN TERMS OF WHERE THE TECHNOLOGY IS GOING TO GO IN THE CAPABILITIES IT WILL HAVE, THERE IS A LOT OF UNCERTAINTY. I THINK IT IS GOOD THERE IS DISAGREEMENT, AND THAT JUST SHOWS YOU THAT IS WHY WE HAVE TO PROCEED WITH CAUTIOUS OPTIMISM.
WE WANT TO MAKE SURE WE GET THE BENEFITS OF THE INNOVATION, BUT WE HAVE GOT TO BE DOING IT IN A RESPONSIBLE WAY. USING A SCIENTIFIC METHOD, TRYING TO HAVE AS MUCH FORESIGHT ON THE TECHNOLOGY AS POSSIBLE. WE PICKED AHEAD OF TIME WITH THE UNINTENDED CONSEQUENCES MIGHT BE. >> FOR SOME, THE EMPHASIS AND THE DEPUTY PRIME MINISTER EARLIER SAID THIS IS VERY MUCH THE SUM IS FOCUSED ON PRINTER TECHNOLOGY. -- FRONTLINE TECHNOLOGIES. OTHERS WOULD SAY WE NEED TO FORCUS ON DATA SECURITY. THOSE ISSUES ARE NOT BEING GIVEN ENOUGH WEIGHT, THE CRITICS WOULD SAY.
>> I DON'T AGREE WITH THAT. THERE ARE MANY SESSIONS ON THE NEAR-TERM RISKS AND ALL OF US AND THE FRONTIER LABS ARE THINKING A LOT ABOUT NEAR-TERM HARMS AND HOW TO MITIGATE THOSE. ED: DEMIS HASSABIS OF DEEPMIND. TOM MACKENZIE JOINS US NOW FROM THE GROUND AT THE AI SUMMIT. IT IS KIND OF LIKE A WHO'S WHO IN THE WORLD OF AI. ELON MUSK IS THERE, RIGHT? FROM A POLITICAL PERSPECTIVE, THE WORLD'S LEADERS HAVE NOT TURNED UP.
HOW MUCH IS RISHI SUNAK LEANING AND ON ELON MUSK BEING THERE? >> ELON MUSK -- A LOT OF YOUR FRIENDS ARE ON THE GROUND TODAY. ELON MUSK IS HERE, ERIC SCHMIDT. DEMIS HASSABIS. THEY REALLY HAVE BROUGHT THOSE DRIVING THE INNOVATION WITHIN TECHNOLOGY. YOU ARE RIGHT, ON THE EDGES, MAYBE A LITTLE DISAPPOINTMENT YOU DON'T HAVE THE FRENCH PRESIDENT HERE, YOU DON'T HAVE THE GERMAN CHANCELLOR.
I WILL STRESS THE U.K. GOVERNMENT SAY, WE ARE PRETTY RELAXED. YOU'VE GOT THE VICE PRESIDENT HARRIS IS HERE. YOU HAVE THE JAPANESE REPRESENTATION, CHINESE REPRESENTATION. THE LEADERS ARE HERE AND CRUCIALLY THERE ARE EXECUTIVES HERE. ELON MUSK HELPS U.K. IN ITS PR EFFORT, CERTAINLY.
SIGN OFF ON THIS WITH 28 NATIONS. THAT IS NO MEAN EAT, GETTING CHINA ON BOARD AS WHAT THEY CALL THESE CATASTROPHIC RISKS. CAROLINE: THERE WAS MUCH MADE OF CHINA BEING PART OF THIS CONVERSATION, BUT IT NEEDS TO BE A GLOBAL NARRATIVE IF WE'RE GOING TO HAVE GUARDRAILS. WHAT DO YOU EXPECT COMING OUT IN TERMS OF HARD REGULATORY POLICY? ALREADY WE'VE BEEN HEARING FROM THE U.S. AND ACTING AN EXECUTIVE ORDER, FOR EXAMPLE.
>> YES, SO YOU HAVE THE COMMUNIQUE WHICH IS A CONSENSUS AROUND PROTECTING SOME OF THESE RISKS, BUT THAT IS ALL IT IS, CONSENSUS. THERE'S NO REGULATORY ACTION THAT COMES ON THE BACK OF THIS. SIX MONTHS TIMES, IT WILL BE SOUTH KOREA AND THEN FRANCE. THERE IS A DIVERGENT PICTURE WHEN IT COMES TO THE REGULATORY RESPONSE, WHETHER THAT IS THE EU AI ACT OR THE EXECUTIVE ACTION OF THE U.S. OR CHINA'S OWN REGULATORY REGIME. YOU SPEAK TO CERTAIN PEOPLE
LIKE DEMIS HASSABIS THAT ALSO INFLECTION CO AS WELL SAYING, LOOK, WE NEED TO HAVE A GLOBAL OVERSIGHT BODY AND THERE'S PUSHBACK. IBM SAID, THAT IS NOT GOING TO HAPPEN. YOU WILL GET THAT GLOBAL CONSENSUS. YOU NEED TO WORK THROUGH THE
AGENCIES THAT ALREADY EXIST. THERE ARE DIVISIONS IN TERMS OF THE REVELATORY FRAMEWORK, THE IMPLEMENTATION. IT ALSO DIVISIONS AMONGST EXECUTIVES IN TERMS OF HOW YOU DEFINE RISKS, DEFINE THE REGULATIONS THAT ARE NEEDED TO CONTAIN SOME OF THOSE RISKS. THE GAP IS HUGE AT A TIME WHEN
WE KNOW THE INNOVATION IS COMING THROUGH AT A VERY RAPID PACE. CAROLINE: A COUPLE MORE DAYS FOR THE SUMMIT TODAY AND TOMORROW AND THE ALL-IMPORTANT DISCUSSION GOING ON BETWEEN ELON MUSK AND RISHI SUNAK AFTER THE EVENT. TOM, THANK YOU. COMING UP, FUNDING, AI SCIENTIST. FORMER GOOGLE CEO ERIC SCHMIDT IS IN THE U.K. BUT ALSO HAS BEEN LENDING A HAND TO A NONPROFIT WITH AMBITIOUS PLANS TO BUILD AN AI SYSTEM FOR SCIENTIFIC RESEARCH.
ED: A QUICK LOOK AT SHARES OF WAYFAIR THAT WAS LOWER AND THEN IT GOES HIGHER 5%. ANALYSTS AND PRESS FOR THE PROFITABILITY IN THE E-COMMERCE CONTEXT. THIS IS "BLOOMBERG." ♪ CAROLINE: -- ED: WALL STREET JOURNAL REPORT ABOUT PLANS TO FILE FOR BANKRUPTCY FOR WE WORK. A SPOKESMAN SAID IT WOULD NOT COMMENT ON SPECULATION.
INTERNET COMPANIES IN SOUTHEAST ASIA FACING SLOWEST GROWTH IN YEARS. RESEARCHERS SAY ONLINE SPENDING IS EXPECTED TO RISE BY 11% THIS YEAR BUT DOWN 20% A YEAR EARLIER IN HIS LOWEST RATE GOING BACK TO 2017 AS CONSUMERS IN THE REGION PULLBACK ON THEIR SPENDING. YOU EMAILS SHOW IN A DOJ LAWSUIT AGAINST GOOGLE, SHEDDING NEW LIGHT ABOUT THE BLURRY LINE BETWEEN SEARCH AND ADVERTISING. 2019, THE FORMER HEAD OF GOOGLE SEARCH RAISED CONCERNS HIS TEAM WAS "GETTING TOO INVOLVED WITH ADS" AFTER GOOGLE INTERNALLY DECLARED A CODE YELLOW AND MADE REVENUE CONCERNS. SPECULATION SIR -- SURGED
SEARCH TEAM SOMETIMES HAVE BEEN PULLED INTO THE ADVERTISING SIDE OF THE BUSINESS. GOOGLE HAS PUSHBACK ON THAT IDEA. CAROLINE: FORMER CEO ERIC SCHMIDT IS VENTURING FURTHER INTO THE NONPROFIT SPACE BY LENDING HIS EXPERTISE TO AN AI RESEARCH INITIATIVE CALLED FUTURE HOUSE. WE HAVE A GREAT STORY ALL ABOUT BASICALLY THEY ARE SUMMING THE SCIENTIFIC PROCESS IN AND OF ITSELF NEEDS TO BE ACCELERATED BY AI, NOT JUST THE ACTUAL FINDING OF SCIENTIFIC RATE THROUGH'S.
>> THAT'S RIGHT. WHAT FUTURE HOUSE REALLY WANTS TO DO HERE IS NOT JUST ADVANCE BREAKTHROUGHS LIKE THE F A FULL PROTEIN FOLDING BREAKTHROUGH THAT WE SAW IN THE LAST COUPLE OF YEARS THAT REALLY CRACKED OPENAI'S POTENTIAL IN SCIENCE. WHAT FUTURE HOUSE WANTS TO DO IS ADVANCE THE PROCESS ITSELF. A LOT OF US HAVE TO GO BACK TO THAT HIGH SCHOOL LABORATORY WHERE WE ARE LEARNING ABOUT HOW TO CREATE A HYPOTHESIS, DOING THE RESEARCH AND ULTIMATELY TESTING THAT. BUT THERE'S A LOT OF BOTTLENECKS THAT FUTURE HOUSE SAYS THEY CAN SOLVE STARTING WITH THE ABILITY TO MAKE NEW HYPOTHESES AT A GREATER SCALE AND MUCH FASTER, PERHAPS MORE ACCURATE THAN HUMAN. THE WAY THEY WANT TO DO THAT IS WITH THIS AI SCIENTIST SO THEY PLAN TO BUILD THEIR OWN AI SYSTEM THAT CAN ADJUST THOUSANDS AND THOUSANDS OF PAPERS AT A MUCH BIGGER SCALE THAN A HUMAN SCIENTIST CAN.
EVENTUALLY, START TO SEMI-THOMAS LEE COME UP WITH HYPOTHESES OF ITS OWN. ED: THERE ARE LOADS OF STARTUPS AND BIG COMPANIES WORKING ON PLAYING AI IN THE SCIENCES ABOUT TECHNOLOGY, PHARMA DRUG DISCOVERY. THIS IS A NONPROFIT AND IT IS FOCUSED IN ACADEMIA. TELL US WHO IS BEHIND FUTURE HOUSE. >> THAT WAS BY DESIGN. OF COURSE, ERIC SCHMIDT IS BY FAR THE LARGEST BACKER. THE ORGANIZATION PLANS TO HAVE
HIS BACKING FOR AT LEAST THE FIRST FIVE YEARS. IT EXPECTS TO SPEND ABOUT $20 MILLION IN THE NEXT YEAR UP UNTIL NEXT AND A LOT OF THAT FUNDING WILL GO TO TALENT AND BUILDING WHAT IS CALLED A WET LABORATORY, MUCH LIKE WHAT YOU WOULD SEE IN AN ACADEMIC EXTEND TO SHOULD OR EVEN SOME OF THESE -- INSTITUTION. BUT THE REASON IT IS A NONPROFIT IS BECAUSE IT DOES NOT WANT HAVE THE PRESSURE TO MAKE MONEY OR PUMPOUT PRODUCTS. THAT IS WHERE YOU HAVE ERIC SCHMIDT SAYING HE WANTS THE INCENTIVES REALLY ALIGNED TO ADVANCE THE RESEARCH ITSELF, NOT HAVING HIS ATTENTION DIVERTED BY OTHER PRIORITIES THAT PERHAPS MIGHT COME FROM INVESTORS WHETHER -- OR THE MARKET ITSELF. ED: THANK YOU. COMING UP, WE ARE GOING TO DISCUSS WHAT IS GOING ON IN THE WORLD, MONETARY POLICY COME IMPACT ON ARTIFICIAL INTELLIGENCE AND THE ENVIRONMENT STARTUPS.
CAROLINE:'S BLANCHE CUT FIVE QUARTER VERB SET -- CUT 7% OF ITS GLOBAL WORKFORCE. THE ALL-IMPORTANT ACQUISITION BY CISCO, HAVING TO RETRACT AROUND THE MARKET. THIS IS "BLOOMBERG." CAROLINE: WILL COME BACK TO "BLOOMBERG TECHNOLOGY." ED: A QUICK CHECK ON EUROPEAN
MARKETS. STOXX 600, CONTINENT-WIDE GAUGE OF EQUITIES, UP FOR A THIRD STRAIGHT DAY. A LOT OF THE TRADING GOING ON IN EUROPE OR DID GO ON THROUGHOUT WEDNESDAY SESSION WAS KIND OF THE HEAD OF AHEAD FO THE FED. THERE WAS ALSO SOME PULLBACK IN THE BENCHMARK EUROPEAN YIELDS. LOOKING AT THE GERMAN TIN YIELD. EURO-DOLLAR SLIPPING FOR THE SECOND STRAIGHT DAY. FOR ONE WEEK ONLY, CHECKING ON
THIS. CAROLINE: IT IS DICTATED BY U.S. MACRO POLICY. LET'S TAKE IN ON THE U.S. MARKETS.
WE ARE UP .7% ON THE NASDAQ 100. UNDER DAY WERE PERHAPS WE HAD MIXED DATA COMING OUT FROM THE U.S. WHAT IS DISCLOSED WHEN IT COMES TO JOB OPENINGS, ACTUALLY CLIMBING. NEVERTHELESS, SOME MOVEMENT TOWARD SOME OF THE TECH NAMES.
THE DOLLAR STAYS PRETTY FLAT BUT WE DO REMAIN AT ABOUT 34 ELEVATED LEVEL. BOND MARKETS RALLYING 12 BASIS POINTS. NOTABLY WE ARE THINKING THE FEDERAL RESERVE IS GOING TO BE HOLDING THOSE INTEREST RATES THAT HE HAD A 22 YEAR HIGH. MAYBE THEY COULD HIKE LATER IN THE YEAR. WHAT DOES THAT POLICY MEAN FOR HEARTS AND MINDS IN TERMS OF ALLOCATING CAPITAL IN THE PUBLIC AND PRIVATE SECTOR? PARTICULARLY FOR AI INVESTORS? I AM JOE ZHAO PLEASED TO SAY JOE ZHAO IS WITH US. SOMEONE WHO WORKED WITH THE
FED, KNOWS HOW TO THINK ABOUT THE IMPLICATIONS VALUATIONS OF COMPANIES. AI, SOME CALL IT A MINI BUBBLE, IT'S. >> NOT IF YOU'RE LOOKING. >> WHERE INTEREST RATES ARE THE AI SUPER CYCLE WHICH IS STARTING THIS YEAR, YEAR ONE, AND THE BUBBLE -- A COUPLE OF REASONS. IF YOU LOOK AT HISTORICAL TECH
BUBBLES LIKE CRYPTO, 10 TO 12 YEARS OF Q. WEEK MONETARY POLICY AND IN 2001 WHEN THE.COM BUBBLE BURST, USUALLY THESE TECH BUBBLES TEND TO FORM WHEN YOU HAVE -- MONETARY POLICY, STRONG MARKETS, STRONG ECONOMY.
IN 2023, ANYTHING BUT THAT. WITH A VERY DIFFICULT MARKET. MY POINT IS IT AI HAS BEEN THIS IMPORTANT, IMAGINE WHEN THE FED NORMALIZES AND WHEN THE MARKETS KIND OF RESUME. CAROLINE: YOU ARE BACKING SOME OF THE KEY NAMES WE TALK A LOT ABOUT ON THE SHOW.
STABILITY AI, EVEN THOUGH THERE IS MANAGEMENT CONCERN. ON A DAY WHERE WE SEE ALL OF AI ONCE WORTH $4 BILLION VALUATION IN 2021 AND NOW BASICALLY CELLS OFF AND HAS TO FOLD. WHAT IS THE DISTINGUISHING FACTOR BETWEEN COMPANIES THAT CAN'T MAKE IT THROUGH AND THOSE THAT CAN? >> I HAVE BEEN HAVING THESE CONVERSATIONS WITH A LOT OF INVESTORS IN FOUNDERS. BASICALLY I HAVEN'T ASKED, WHAT IS AI? IT IS SOFTWARE SQUARED. THINK ABOUT HOW SOFTWARE HAS HAD ON OUR LIVES. AI WILL BE MUCH BIGGER.
BY THE SAME TOKEN, YOU CAN VALUATE, REVENUE, I'M PRICE -- YOU WOULD VALUE ENACT COMPANY BY THE SAME TOKEN AND VALUE THE COMPANY BASED ON -- SOME OF THESE AI COMPANIES ARE OVERVALUED BUT THAT IS BECAUSE THEY ARE GROWING FAST. THE REVENUE GROWTH IS JUSTIFIED. OR BECAUSE THE MARKET IS BIG OR THERE SUCH A STRONG -- SOME OF THE COMPANIES THAT ARE NOT SUSTAINABLE I. EXAMPLE FIVE ONE OF THOSE CHARACTERISTICS. ED:
WE WERE REFLECTING THIS MORNING ON A CONVERSATION WE KIND OF HAD THROUGHOUT THE YEAR BUT IT STARTED WITH 90% OF THESE NEW STARTUPS, ONES THAT WERE FOUNDED THIS YEAR, WON'T SURVIVE. I -- IT IS A CONVERSATION I HAVE ALWAYS HAD. YOU LOOK AT THE PORTFOLIO, ART 90% OF THEM NOT GOING TO MAKE IT ANYWAY? >> NOT EVERY COMPANY WILL MAKE IT. BUT WHEN I LOOK AT THE ECOSYSTEM, I AM REALLY EXCITED ABOUT THIS JUNCTURE WHERE AI HAS INTRODUCED A LOT OF LIFE BACK INTO THE ECOSYSTEM. WHERE CREATED WERE NEW COMPANIES CAN BE BORN AND WILL BE MANY USEFUL APPLICATIONS IN CANCER RESEARCH, HEALTH CARE SERVICES, ETC. NOT EVERY COUNTRY IS GOING TO
MAKE IT. I COMPARED THIS MOMENT TO WHERE WE WERE IN 2010 FOR THE CLOUD AND 2010 IS WHEN WE WERE COMING OUT OF THAT SHE OF MARKETS WERE RECOVERING. 2002. COMPANIES THAT WILL SURVIVE THIS SORT OF WASHOUT ARE POISED TO STAY AND YOU ARE SEEING SOME OF THE MOST IMPRESSIVE GROWTH NUMBERS IN A PHILANTHROPIC YEAR AND WE ARE CONFIDENT ABOUT THE AI IS HERE TO STAY AND WILL HAVE A HUGE IMPACT ON OUR BUSINESS OF OUR LIVES. ED: THERE'S BEEN A DEBATE ABOUT WHAT WILL BE BIGGER FOR GLOBAL FINANCIAL MARKETS, THE FED THIS AFTERNOON OR APPLE EARNINGS ON THURSDAY EVENING. LET'S STICK WITH THE FED. IF YOU ARE A VENTURE CAPITALIST
OR A LONG-TERM PRIVATE INVESTOR, WHY DO YOU CARE ABOUT MONETARY POLICY? WHY DO YOU TRACK RATES IN THE DIRECTION OF TRAVEL FOR RATES? COAX TWO THINGS. ONE IS VENTURE CAPITAL ASSETS ARE JUST EQUITIES AND THAT IS NO DIFFERENT THAN PUBLIC -- VENTURE CAPITALISTS DON'T MOVE BUT IF YOU ARE VC, YOU NEED TO UNDERSTAND WHERE RATES ARE AND WHAT THE MARKETS WILL LOOK LIKE AND THAT IS GOING TO IMPACT VALUATIONS IN YOUR PORTFOLIO. SECONDLY, LET ME SAY THIS, THE FED IS DONE -- THE ONLY DIRECTION OF FEDERAL FUNDS RATE IS GOING TO GO ABSENT ANY SORT OF IN THE NEXT FEW YEARS IS DOWNWARDS. 5.5 RIGHT NOW, LITTLE HIGHER.
THE FEDERAL FUNDS RATE WILL GO DOWN TO MAYBE 3% TO 4% TO 2%. DISCOUNT RATES TO COMPRESS BY 20 BASIS POINTS, THAT WILL LEAD TO EQUITY VALUE EXPANSION AND THAT IS GOING TO BE A HEALTHY MOVEMENT FOR A PUBLIC -- COMPARABLES. THAT IS WHAT WE ARE EXCITED. A NEW BUSINESS CYCLE AND I I HAS INTRODUCED A LOT OF NEW ACTIVITIES IN THE MARKET. THIS MAY BE ONE OF THE BEST -- >> THAT IS AN ANSWER I THINK CAROLYN ADDRESSES A LOT OF THE QUESTIONS OUR AUDIENCE HAS. JOE ZHAO, GREAT TO HAVE YOU
BACK ON "BLOOMBERG TECHNOLOGY." COMING UP, WE WILL TALK REGULATION AND INVESTMENT IN THIS SPACE. CAROLINE: LET'S TALK ABOUT DESIRE TO BE SPENDING MONEY ON BIG DEALS. SOME IS CROSSING THE WIRE THAT ENDEAVOR, THE COMPANY OF TALENT AGENCY AND BEHIND ULTIMATE FIGHTING CHAMPION AS WELL, PRIVATE EQUITY FIRM SILVER LAKE TURNING TO HIS CLOSEST PARTNER TO BACK ONE OF ITS OWN LARGEST EVER BUYOUT DEAL PROPOSALS. POTENTIAL TAKEOVER OF ENDEAVOR. CHECK OUT THE SHARES.
ENDEAVOR NOT COMMENTING. THIS IS "BLOOMBERG." CAROLINE: BUSINESS OFFICIALS TOLD A SENATE PANEL THAT CONGRESS MUST TAKE A MORE ACTIVE ROLE IN THE USAGE OF AI PARTICULARLY IN WORKPLACE. FOR MORE, LET'S BRING IN JAY WHO IS A GREAT STORY. STATE BY REGION. NOTHING FROM A FEDERAL LEVEL PROTECTING THE WORKER? >> THAT IS WHAT THESE FOLKS FROM THE BUSINESS COMMUNITY WERE CALLING FOR BECAUSE IF YOU HAVE THIS PATCHWORK OF LOCAL AND STATE REGULATIONS, YOU CAN MAKE IT DIFFICULT FOR COMPANIES WHO WERE DEVELOPING NEW TECHNOLOGIES TO FIGURE OUT HOW TO EVEN PROCEED. SOME FOLKS WERE CALLING FOR FEDERAL ACTION ON THIS, IN PARTICULAR, LOOKING AT AI HIRING. AS YOU MENTIONED, THERE IS A
NEW YORK CITY LAW LOOKING AT BIAS IN AI SOFTWARE IN ORDER TO REGULATE THOSE SORTS OF PROGRAMS BEING USED. FOR EMPLOYMENT DECISIONS. CAROLINE: THERE IS THE ONGOING ISSUE WITH REGULATION AND NEW TECHNOLOGY, WHICH IS DO YOU STIFLE INNOVATION. HOW MUCH RECENTLY PULL AND FRESH BEEN DISCUSSED AT A COMMERCE LEVEL? ASH PULL AND PUSHING DISCUSSED AT A COMMERCE LEVEL? >> I THINK THERE ARE -- IT IS TOUGH FOR LAWMAKERS TO FIGURE OUT HOW TO PROCEED BECAUSE I THINK THERE ARE ARGUMENTS ON BOTH SIDES THAT ON ONE SIDE FOLKS SAY AI HOLDS A LOT OF RISK FOR WORKERS AND MAY EVEN RESULT IN DISPLACEMENT OF PEOPLE'S JOBS ON A LARGE SCALE. ON THE OTHER SIDE, PEOPLE SAY THAT IS REALLY NOT GOING TO HAPPEN. YOU'RE GOING TO SEE PEOPLE SHIFTING INTO NEW JOBS, WE WILL SEE PEOPLE LEARNING NEW SKILLS. SO IT IS HARD TO KNOW FOR CONGRESS AT THIS POINT IN PARTICULAR HOW EXACTLY THEY SHOULD PROCEED, HOW TIGHTLY THEY SHOULD BE REGULATING VERSUS LETTING PRIVATE COMPANIES DO THEIR OWN THING.
CAROLINE: GREAT TO HAVE YOU. THANK YOU VERY MUCH ON THAT IMPORTANT STORY AND SOMETHING BEING DISCUSSED IN THE U.K. AS WELL. ED: THAT IS THE TOPIC IN TODAY'S SPOTLIGHT.
RIGHT NOW THE UNITED KINGDOM, THERE IS A SUMMIT UNDERWAY. JOINING US, JAMES WISE, A PARTNER AT BALDERTON CAPITAL. WHAT DOES A SUMMIT LIKE THIS MEAN FOR THE ECOSYSTEM OF STARTUPS WORKING ON AI AND U.K. IN PARTICULAR? IS THERE ANY TANGIBLE ACTION THAT WILL COME IN SUPPORTING THAT INDUSTRY? >> AI IS A POSITIVE THING. WE WANT TO SEE INTERNATIONAL
COLLABORATION, REGULATION THAT IS CLEAR AND FORWARD AGAIN. HOW IS IS GOING TO AFFECT ENTREPRENEURS ON A DAY-TO-DAY BASIS? AND THEIR ABILITY TO RAISE CAPITAL? WHAT WE ARE LOOKING AT IS REGULATION E-MODELS WERE ACCESS TO THE TOOLS LIKE OPEN SOURCE SOLUTIONS AFFECT THE DESIRE TO TRY INNOVATING IN THE SPACE AND THE ABILITY OF INVESTORS TO MAKE A DIFFERENCE AND HELP BUILD BIG BUSINESSES HERE. ED: WHAT THIS SUMMIT HAS DONE IS LITERALLY PUT IN FRONT OF THE CAMERA THE TALENT IN THE U.K., DEEPMIND BEING AN OBVIOUS EXAMPLE.
ARE THERE ANY PARTICULAR ADVANTAGES YOU FEEL THE U.K. HAS IN THE FIELD OF ARTIFICIAL INTELLIGENCE, BE IT ACADEMIC OR THE PRIVATE SECTOR? >> WE HAVE A BROAD RANGE OF SOFTWARE SUCCESSES WHETHER IT IS IN FINTECH OR DEEP CATEGORY EVEN THE LIFE SCIENCES. WHAT WE ARE IS RESEARCH IN AI NOW PROLIFERATING THROUGH ADDITIONAL APPLICATIONS BEING TAKEN UP BY LEADING SOFTWARE BUSINESSES TO MAKE A DIFFERENCE FOR USERS. ULTIMATELY, THAT MATTERS. HAVING PEOPLE HIS FANTASTIC BUT WORKING AT AN INTERNATIONAL LEVEL IS IMPORTANT.
U.K.'S A GREAT MODEL BUT WHEN WE INVEST HERE, WE WANT THEM TO BE IMPACTFUL ON A GLOBAL SCALE. THAT IS WHY HAVING SOMETHING LIKE THE GLOBAL AI SAFETY SUMMIT IS INCREDIBLY BENEFICIAL. CAROLINE:
SOME INVESTMENTS INCLUDE WRITER AND WE HAVE INTERVIEWED FOUNDER OF THAT BUSINESS WHO PERMANENTLY IS JETTING ACROSS FROM LONDON TO S.F. AND BACK ELDIN A BUSINESS. WHAT ARE VALUATIONS LIKE IN THE U.K.? THERE IS TALK ABOUT HOW THEY ARE PRETTY ELEVATED IN THE U.S. >> THE AMOUNT OF MONEY FROM INVESTORS GETTING INTO AI HAS GROWN SIGNIFICANTLY IN THE U.K., GROWN ABOUT 70%. THEY HAVE JUST OVERTAKEN FINTECH. THAT CREATES COMPETITION AND DRIVES UP VALUATIONS FOR EARLY STAGE INVESTMENTS. WHAT IS DIFFERENT ABOUT AI
INVESTING RIGHT NOW THAT SOME SOFTWARE VALUATIONS DRIVEN MAYBE A COUPLE OF YEARS AGO IS REVENUES ARE REALLY FOLLOWING. THERE IS INCREDIBLE DEMAND BOTH AT THE CONSUMER LEVEL AND THE PRICE LEVEL FOR THESE NEW TOOLS. WE NEED TO MAKE SURE DEMAND CONVERTS THE USAGE AND PEOPLE REALLY GET BENEFIT OUT OF IT. A LOT OF THE HIGH VALUATIONS YOU WILL SEE OUR UNDERPINNED BY VERY FAST GROWING REVENUES. CAROLINE: I PUT TO YOU A QUESTION WE JUST HAD A CHAT WITH JOE ZHAO ABOUT AND ONE COMPANY -- WE'RE STARTING TO GET A FEW COMPANIES FAILING. ONE, WORTH $4 BILLION IN 2021 AND NOW SELL ENOUGH PARTS OF THE BUSINESS AND BASICALLY UNWINDING.
HOW DO YOU DECIDE WHICH COMPANIES GOING TO BE ABLE TO PUSH THROUGH WHEN A LOT OF THE FIREPOWER WITHIN AI IS COSTLY AND IS UP BEING OWNED BY SOME OF THE BIG OLIGOPOLIES? >> WHAT WE HAVE SEEN THE LAST YEAR IS EXPOSING CAPABILITIES OF GENERATIVE AI AND THAT HAS COMPLETELY RUINED THE BUSINESS MODELS OF SOME BUSINESSES THAT WERE BUILDING THEIR OWN MODELS AT SCALE. THERE IS GOING TO BE DISRUPTION. THERE WILL BE FAILURES. WHAT WE'RE LOOKING FOR NOW IN A PERIOD OF PAST TECHNICAL CHANGE AND INNOVATION ARE FOUNDERS AND PRODUCT TEAMS WHO CAN ADAPT AND DEPLOY THESE NEW TECHNOLOGIES TO FIND WAYS TO REALLY BRING VALUE FOR THE CUSTOMERS. YOU DID A GREAT SUMMARY OF AMD'S FORECAST. RIGHT NOW A LOT OF THE VALUE IS BEING CAPTURED AT THAT LEVEL, CLOUD LEVEL WITH THE HYPER SCALERS OR CHIP PRODUCERS.
WE ARE LOOKING FOR THOSE WHO CAN NAVIGATE THROUGH THIS CHANGING LANDSCAPE AND CAPTURE VALUE BY PROVIDING SERVICES TO PEOPLE. ED: MANY OF THE FOUNDERS THAT CAROLINE AND I SPEAK TO, THE FIRST THING THEY THINK ABOUT WHEN THEY WAKE UP LITERALLY IS COMPUTED. IT IS EXPENSIVE AND HARD TO SECURE. DOES U.K. HAVE ACCESS TO THAT COMPUTE? >> IT IS A CHALLENGE. THE U.K. HAS -- IS SIXTH IN THE WORLD. HOWEVER, WE DO HAVE SOME LOCAL CENTERS. WE JUST ANNOUNCED U.K. FUNDING FOR COMPETING CENTER
WHICH WILL HELP AND FUNDS LIKE MOTHER 10 AND OTHERS -- BALDERSTON AND OTHERS. THIS WEEKEND WE ARE PROVIDING ACCESS TO 300 HACKERS, I GUESS THE BIGGEST HACKATHON TOOLS FREE OF CHARGE TO HELP THEM START GETTING ON THE SCALE AND LEARNING HOW TO USE THESE TOOLS. I THINK THINGS LIKE THAT AND DEALS WITH NVIDIA AND THE U.K. MEANS ENTREPRENEURS HERE CAN
COMPETE TO LEAD IN THE FIELD. ED: REMA REMEMBER TO INVITE US TO YOUR HACKATHONS. HOW META ADVERTISES TO CUSTOMERS. DETAILS COMING NEXT.
THIS IS "BLOOMBERG." ED: MET TO HAVE SAID TO BE HAD BY PRIVACY CRACKDOWN IN THE E.U. OVER ITS TROVE OF PERSONAL DATA THAT USES TO TARGET USERS WITH ADS. YOU CAN'T TAKE THE DATA PREMIER PLATFORMS AND USE IT IN HOW YOU TARGET THOSE USERS WITH ADS. >> THERE SAY THE DATA COLLECTION THE SCALE OF WHICH DATA HAS DONE IT ACROSS FACEBOOK, INSTAGRAM, AND MESSENGER IS BEYOND WHAT CONSUMERS HAVE AGREED TO AND TAKES AWAY THEIR CHOICE. WHAT MEDA HAS DONE IS THEY HAVE
OPERATED OR THEY HAVE RELEASED THIS FREE VERSION, THIS AD-FREE VERSION THINKING THAT WOULD SATISFY REGULATORS. SAY, WE ARE GIVING USERS A CHOICE. THEY DON'T HAVE TO HAVE ADS. IT IS SORT'S'S OF A KHAKI LADY MOVE ON MEDA -- REGULATORS ARE NOT SURE THAT NECESSARILY SATISFIES THEM. META IS SAYING THEY'VE HAD
DISCUSSIONS OVER THE COURSE OF MANY MONTHS TRYING TO GET TO A PLACE WHERE THEY CAN STILL OPERATE IN EUROPE BUT IT LOOKS A LITTLE TENUOUS RIGHT NOW. CAROLINE: THEY'RE SAYING THEY'VE BEEN AWARE OF THIS PAPER WE SIMPLY ENGAGED TO ARRIVE AT A SATISFACTORY OUTCOME FOR ALL PARTIES BUT THAT IS UNJUSTIFIABLY IGNORES THE ROBUST ROGATORY PROCESS. THIS IS REALLY STEMMING FROM NORWAY. HOW HARSH COULD THIS GET? >> IT COULD BE SOMETHING WE SEE AND ALL OF EUROPE. WE COULD SEE THIS AD-FREE VERSION GETS MAYBE DEEPER SCRUTINY AS TO WHETHER IT COLLECTS DATA STILL. USERS ARE NOT AS CONCERNED ABOUT WHETHER THEY HAVE ADS OR NOT COMPARED HOW MUCH DATA IS TAKEN FROM THEM.
I THINK THAT IS WHAT WE WILL COME TO NEXT. ALREADY MEDA HAS PULLED BACK FROM EUROPE. REMEMBER THAT THE NEW INSTAGRAM PLATFORM THE RIGHTS LAUNCHED THERE SO THEY ARE TRYING TO BE A LITTLE MORE CAUTIOUS IN THE REGION. THAT IS DIFFICULT FOR THE COMPANY BECAUSE IT IS ONE OF THEIR MORE LUCRATIVE AD REGIONS AROUND THE WORLD. KEVIN: GREAT TO BREAK THAT DOWN. WE THANK YOU. -- CAROLINE: GREAT TO BREAK THAT DOWN. WE THANK YOU. LET'S TALK ABOUT CRYPTO AND A
TRIAL GOING ON COMING TO A CLOSE OF SAM BATEMAN FREED. PROSECUTORS MAKE THEIR FINAL PITCH TO THE JURY. PEOPLE HAVE BEEN GETTING UP AT 1:00 TO 2:00 IN THE MORNING TO GET INTO THE COURTHOUSE. WHAT ARE WE ANTICIPATING? HOW QUICKLY COULD ANY JUDGMENT BE MADE? >> IT COULD BE AS EARLY AS THE END OF THIS WEEK, IT COULD GO INTO NEXT WEEK. THE JURY HAS TO DELIBERATE BUT
THEY'RE LOOKING TO GET TO A CONCLUSION. TODAY WE HAVE SAM BANKMAN-FRIED WHO WRAPPED UP HIS OWN TESTIMONY YESTERDAY AND TODAY YOU ARE WATCHING THE PROSECUTION, AND WITH CLOSING REMARKS, USING HIS OWN TESTIMONY AGAINST HIM. YOU SAW HIM COME IN EARLY TO HIS OWN DEFENSE, VERY CLEAR HEADED AND A DAY LATER YOU SAW HIM WALK INTO THE PROSECUTION STUMBLING OVER MANY DEFINITIONS, STUMBLING OVER MANY THINGS THE PROSECUTION PUT RIGHT IN FRONT OF HIM -- BOOKS, ARTICLES -- AS TO WHAT HE HAD SAID AND THEN WATCHING HIM EITHER NOT REMEMBER OR DENY WHAT HAS BEEN WRITTEN OR SAID ABOUT HIM. ED: WHAT WAS HIS DEFENSE BASICALLY BEYOND SIGN, I WASN'T A VERY GOOD EEO? >> THAT IS THE MAIN DEFENSE, THIS IDEA THEY DID NOT HAVE THE RIGHT RISK MANAGEMENT IN PLACE. THE IDEA WAS NOT JUST THAT HE WASN'T A VERY GOOD CEO BUT HE WAS TRYING TO SHOW HE WAS NOT ACTUALLY THERE WERE RESPONSIBLE FOR CERTAIN AMOUNTS OF THE DECISIONS MADE AT ALAMEDA WHILE CAROLINE ELSON WAS RUNNING IT. THAT IS THE DISTANCE HE TRIED TO CREATE FOR HIMSELF.
HE IS TRYING TO CONVINCE A JURY, MANY OF WHICH WERE NOT AWARE OF WHAT HAD HAPPENED LAST YEAR, THE LAST COUPLE OF YEARS AT FTX, AND WERE NOT AWARE OF A LOT OF WHAT WAS ALLOWED AND WHAT WAS NOT ALLOWED IN TERMS OF MARGIN LOANS AS HE HAS SAID ALAMEDA HAD TAKEN FROM FTX. OF THE PROSECUTION IS COMING DOWN HARD AND GOING AGAINST HIM IN TERMS OF THE DISCREPANCIES AND HOW HE HAD SHOWN WHAT HAD HAPPENED AT FTX. CAROLINE: THANK YOU. THAT DOES IT FOR THIS EDITION
OF "BLOOMBERG TECHNOLOGY." ED: THIS IS "BLOOMBERG."
2023-11-07 04:12
