OpenAI's Restructuring and Micron Shares Surging | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ED: LIVE FROM SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." RESTRUCTURING. AND GIVING SAM ALTMAN A 70% EQUITY STAKE IN THE COMPANY. MICRON SHARES SEE GAINS ON THE BACK OF EARNINGS. AND WE LOOK AT AN AUGMENTED REALITY STRATEGY WITH AN EXCLUSIVE INTERVIEW WITH A CTO. AND THIS IS WHAT FINANCIAL
MARKETS LOOK LIKE IN THE CONTEXT OF TECHNOLOGY. AFTER A BRIGHT START, THE NASDAQ IS FLAT. THERE HAD BEEN ENTHUSIASM FOR TECHNOLOGY SHARES BECAUSE OF STRONG ECONOMIC DATA. THE IDEA THAT CENTRAL BANKS
AROUND THE WORLD WILL START CUTTING RATES -- AND A REINFORCED PLEDGE FROM CHINA FOR A STIMULUS PACKAGE. IT IS IN THE SEMICONDUCTOR SPACE WHERE THERE IS ALL THE ACTION. YOU LOOK AT MICRON. THIS IS AN EARNING STORY WHERE IT IS FORECAST STRENGTH IN AI. WE ARE TALKING HIGH-BANDWIDTH
MEMORY. STRENGTHEN MICRON'S BOOSTING THE PHILADELPHIA SEMICONDUCTOR INDEX. OPENAI IS DISCUSSING GIVING CEO SAM ALTMAN A 7% EQUITY STAKE IN THE COMPANY AND RESTRUCTURING TO BECOME A FOR-PROFIT BUSINESS. THIS ALL ACCORDING TO SOURCES. THIS IS A MAJOR SHIFT THAT WOULD MARK THE FIRST TIME ALTMAN IS GRANTED OWNERSHIP IN THE AI STARTUP, AND THERE IS A LOT MORE GOING ON BEHIND THE SCENES. RACHEL JOINS ME NOW. YOU AND I REPORTED ON THIS TOGETHER WITH SERENA BARI AND DENA BASS.
LET'S START WITH THIS IDEA OF OPENAI ADJUSTING ITS BUSINESS MODEL. WHAT HAVE SOURCES TOLD US? RACHEL: THEY HAVE TOLD US THAT THE COMPANY IS CONSIDERING SHIFTING FROM THIS NONPROFIT STATUS THAT IT HAS HAD FOR A NUMBER OF YEARS -- IT IS A NONPROFIT BUT IT HAS A VERY COMPLICATE ORGANIZATIONAL STRUCTURE, AND IT MAY SHIFT ITS MAIN BUSINESS TO BEING A FOR-PROFIT PUBLIC BENEFIT, AND THEY ARE CONSIDERING WHETHER SAM ALTMAN MIGHT HAVE A SIGNIFICANT STAKE IN IT. YOU MENTIONED 7% EQUITY, WHICH COULD TRANSLATE TO A HUGE FINANCIAL WINDFALL FOR HIM.
CAROLINE: UNSURPRISINGLY, LOADS OF PEOPLE HAVE ASKED ME -- I'M SURE THEY HAVE ASKED YOU -- DO THE MATH. HOW MUCH DOES THAT MEAN IN TERMS OF WEALTH FOR IT SAM ALTMAN? I THINK IT IS TOO EARLY TO DO THE MATH. WE WILL GET TO IT AROUND THE CLOSE. THIS IS NEWS. SAM ALTMAN HAS ACTUALLY BEEN SPEAKING TODAY IN TURN, ITALY, AT TECH WEEK ITALY.
HE WAS ASKED IF MIRAMAR ALREADY -- IF MIRA MIRATY, THE CHIEF TECHNOLOGY OFFICER, WHO ANNOUNCED HER RESIGNATION, IS LEAVING BECAUSE OF THIS RESTRUCTURING. HE SAID NO. I THINK THIS IS ABOUT A NEW GENERATION OF LEADERSHIP. YOU AND I HAVE SPOKEN TO SOURCES WHO HAVE BEEN TELLING US ABOUT WHAT IS GOING ON.
I UNDERSTANDING IS THAT MURATI IS STILL THERE, NEGOTIATING AN EXIT, AND STAFF ARE A BIT WORRIED. RACHEL: THERE ARE A COUPLE THINGS HAPPENING. ONE IS THAT THE COMPANY IS SEEING A HUGE AMOUNT OF ORGANIZATIONAL LEADERSHIP SHIFTING SINCE SAM WAS BRIEFLY OUSTED AND THEN CAME BACK AS CEO LATE LAST YEAR. A LOT OF THINGS HAVE HAPPENED IN A FAIRLY SHORT TIME, ESPECIALLY AT THE TOP. THEY HAVE A WHOLE NEW BOARD, BASICALLY. THEY HAVE A LOT OF CHANGES AT THE C LEVEL OF THE COMPANY, PEOPLE GOING AND COMING.
ALSO, FOUNDERS HAVE LEFT. THERE ARE TWO FOUNDERS STILL THERE, SAM ALTMAN BEING ONE OF THEM. AND GREG IS ON LEAVE UNTIL AT LEAST THE END OF THE YEAR. EMPLOYEES ARE SEEING A LOT OF CHANGES. SAM ACTUALLY SAID PUBLICLY THAT IT SOUNDED LIKE IT WAS A SURPRISE TO HIM. HE SAID IN A POST ON X YESTERDAY THAT MIRA TOLD HIM SHE WAS LEAVING THE DAY IT HAPPENED. IT SOUNDS LIKE IT MIGHT HAVE
BEEN A SURPRISE TO EVERYONE, INCLUDING HIM. ED: RACHEL METZ. WE CONTINUE TO REPORT ON THAT STORY. CHECK OUT THE FULL REPORT ON BLOOMBERG NEWS AND BLOOMBERG TECHNOLOGY. WE HAVE BREAKING NEWS AT THE TOP OF THIS HOUR. SUPER MICRO COMPUTER IS BEING PROBED BY THE JUSTICE DEPARTMENT FOLLOWING A CRITICAL REPORT BY AN ACTIVIST SHORTSELLING FIRM.
A REPORT IN "THE WALL STREET JOURNAL" CITES ANONYMOUS SOURCES. IAN KING IS HERE WITH US IN SAN FRANCISCO. THE STOCK IS DOWN 14%. WE ARE REACTING TO THE JOURNAL REPORT. IAN: IT IS BACK TO THIS ISSUE THAT THE COMPANY HAS ADMITTED THAT THEY HAVE BEEN LATE TO FILE THEIR ANNUAL REPORT BECAUSE -- EXACTLY, ACCOUNTING ISSUES.
THAT IS ACCORDING TO THE INVESTIGATION, AND IT GOES BACK TO SOMETHING THEY HAVE BEEN THROUGH PREVIOUSLY WHEN THEY HAD ACCOUNTING ISSUES. ED: I HAVE WRITTEN TO SUPERMICRO. THEY HAVE NOT YET RESPONDED, BUT BETWEEN US WE HAVE TRIED TO GET A RESPONSE. MICRON -- THIS IS A REALLY BIG MOVE. AND IT IS A MOVE BASED ON THE MARKET UNDERSTANDING THAT MICRON IS A WINNER IN THE DATA CENTER, IN THE BUILDOUT THAT IS HAPPENING. EXPLAIN. IAN: THEY CONFIRMED EVERYBODY'S BEST HOPES AND SAID THE MARKET FOR THIS AI SERVER IS 25 MILLION -- TONY 5 BILLION NEXT YEAR. THE FLIPSIDE OF THAT, YOU WILL REMEMBER WE SPOKE ABOUT THIS YESTERDAY.
PEOPLE WERE WORRIED ABOUT WHAT IS GOING ON IN SMARTPHONES AND MICRON SAID IT IS GOOD TO BE BETTER THAN WE PREVIOUSLY THOUGHT. THERE IS A DOUBLE LIFT THERE. ED: THIS HAS BEEN A FAST START TO THE SHOW, A LOT OF BREAKING NEWS. IF I WALKED INTO A DATA CENTER AND WENT UP TO A SERVER RACK AND I PULLED OUT ONE OF THE TRAYS, I WOULD PROBABLY FIND AT THE CENTER OF IT DOWN NVIDIA GPU. BUT THERE WOULD BE HAPPY DOESN'T HIGH-BANDWIDTH MEMORY CHIPS.
RIGHT NOW, IT SEEMS LIKE THOSE HIGH-BANDWIDTH MEMORY CHIPS ARE COMING FROM MICRON. IAN: OBVIOUSLY, WE ARE VERY FOCUSED ON THIS TOPIC. ED: I AM A NERD. IAN: YOU SAID IT. ABSOLUTELY. BIG MODELS, BIG DATA.
THEY GET BETTER AS YOU GIVE THEM MORE DATA. HOW DO YOU GET BETTER FAST? YOU PUT IT IN MEMORY THAT IS ADJACENT TO THE MICROPROCESSORS. THE MORE THAT MEMORY CAN TALK TO THEM, THE BETTER THEY GET. IF YOU ARE A COMPANY THAT IS LEADING THE WAY IN GETTING THAT MEMORY DEVELOPMENT OUT THERE AND GETTING IT TO THOSE COMPANIES, YOU ARE DOING WELL.
ED: IAN KING ACROSS THE BREAKING NEWS ON SUPERMICRO AND MICRON. THERE IS A LOT MORE HAPPENING IN FINANCIAL MARKETS THAT IS IMPACTING THE TECHNOLOGY SECTOR. I WANT TO GO TO NEW YORK AND ISABEL LEE. I WAS LOOKING AT THE NASDAQ 100. A REALLY BIG NAME. ECONOMIC DATA. DIGESTING THE PATH FORWARD FOR CENTRAL BANKS.
KIND OF HAD A WHIMPER WITH SEMICONDUCTORS STILL STRONG. WHAT IS THE STORY BEHIND THAT? ISABEL: YOU SEE MICRON K-POP 20%. THAT IS THE LARGEST ONE-DAY GAIN SINCE 2011, BUT IT IS UP STILL 30%, THAT IT HAS PARED BACK SOME OF THOSE GAINS. EVEN THE NASDAQ AND THE S&P. THE NAME OF THE GAME IS STILL TECH.
WE HAVE NVIDIA, AMD -- THEY ARE TESTING THE 200 DAY MOVING AVERAGE. THIS IS A BULLISH SENTIMENT SIGNAL. WE HAD A $23 BILLION SEMICONDUCTOR ETF HITTING ITS HIGHS IN AUGUST, THE THIRD STRAIGHT WEEK OF INFLOWS, MEANING INVESTORS ARE PILING MONEY AND. TECH STILL REMAINS TO BE THE BIG THEME THROUGHOUT THE MARKET RALLY. WHAT IT IS LOSING SOME OF ITS
LUSTER BECAUSE WE HAVE THE EQUAL WEIGHTED S&P 500 CATCHING UP. MONTH TO DATE, IT IS UP AROUND ONE POINT FOUR. S&P AND NASDAQ IS UP AROUND 2%. EVEN NVIDIA IS UP. ED: NEW YORK MAYOR ERIC ADAMS IS
SPEAKING. >> THIS IS A YOU THING, ERIC ADAMS. THIS IS A YOU THING. YOU ARE A DISGRACE TO OUR LIKE NEIGHBORHOOD AND THE CITY. THE THINGS THAT YOU HAVE DONE ARE UNCONSCIONABLE. OUR STREETS ARE DIRTY. OUR CHILDREN ARE HARASSED BY
POLICE. THIS IS RIDICULOUS. THIS IS RIDICULOUS. THE PEOPLE ARE WITH US. THIS IS NOT A BAD DAY. THIS IS A JUSTICE DAY. MAYOR ADAMS: I WANT TO THANK YOU FOR BEING HERE.
AND I WANT TO THANK THE SUPPORTERS OF ALL ETHNIC GROUPS THAT I HERE, PARTICULARLY THE MEN AND WOMEN OF THE CLERGY THAT WILL JOIN ME HERE TODAY. WE ARE NOT SURPRISED. WE EXPECTED THIS. THIS IS NOT SURPRISING TO US AT ALL. WHAT HAS UNFOLDED OVER THE LAST 10 MONTHS -- THE COMMENTARY, THE DEMONIZING -- THIS DID NOT SURPRISE US THAT WE REACHED THIS DAY.
WAIT TO HEAR OUR DEFENSE BEFORE MAKING ADJUSTMENTS. IN ABOUT 30 MINUTES, WE ARE GOING TO HEAR A STORY OF THE CASE THAT -- IN ABOUT 30 MINUTES, WE ARE GOING TO HEAR A STORY OF THE CASE THAT IS IN FRONT OF US. THIS STORY WILL COME FROM THE FEDERAL PROSECUTORS. I ASKED TO WAIT AND HEAR OUR SIDE TO THIS NARRATIVE. FROM HERE, MY ATTORNEYS WILL TAKE CARE OF THE CASE, SO I CAN TAKE CARE OF THE CITY. MY DAY-TO-DAY WILL NOT CHANGE.
I WILL CONTINUE TO DO THE JOB FOR 8.3 MILLION NEW YORKERS THAT I WAS ELECTED TO DO. AND THE 300 THOUSAND PLUS EMPLOYEES OF OUR CITY GOVERNMENT WILL CONTINUE TO DO THEIR JOBS, BECAUSE THIS IS WHAT WE DO AS NEW YORKERS. IT IS AN INSULT TO THE HARD-WORKING PEOPLE OF THIS CITY THAT ANYONE WOULD SAY THAT THEY WON'T DO THEIR JOBS WELL THIS CASE PROCEEDS IN THE BACKGROUND. THEY ARE DEDICATED PUBLIC SERVANTS, AND I HAVE BEEN ONE OF THEM FOR MANY YEARS, AND THEY ARE GOING TO CONTINUE TO DO THEIR JOB MOVING THE CITY FORWARD EVERY DAY. IT IS AN UNFORTUNATE DAY AND IT IS A PAINFUL DAY.
BUT IT IS A DAY WHEN WE WILL FINALLY REBUILD, WHY FOR 10 MONTHS WE -- I HAVE GONE THROUGH THIS. AND I LOOK FORWARD TO DEFENDING MYSELF AND DEFENDING THE PEOPLE OF THIS CITY, AS I HAVE DONE THROUGHOUT MY ENTIRE PROFESSIONAL CAREER. I'M GOING TO NOW TURN IT OVER TO THE PERSON WHO STARTED ME ON THIS JOURNEY -- REVEREND HERBERT DAUGHTRY. >> AMEN. AMEN. [APPLAUSE] >> THANK YOU, MR. MAYOR. ED: THAT WAS NEW YORK CITY MAYOR ERIC ADAMS SPEAKING AFTER BEING INDICTED ON BRIBERY AND FRAUD CHARGES. WHAT DO YOU HAVE TO SAY THAT
WHILE THE LEGAL PROCESS IN THE CASE IS ONGOING, HIS DAY-TO-DAY WILL BE UNCHANGED. HE SAID IN THE SPIRIT OF BEING A NEW YORKER, THE FUNCTION OF ADMINISTRATION OF THE CITY WILL CONTINUE. PEOPLE SERVE AS MAYOR OF NEW YORK CITY. HE SAYS HE LOOKS FORWARD TO
DEFENDING HIMSELF AGAINST THE CHARGES BEING BROUGHT AGAINST HIM, THE ALLEGATIONS OF THE INDICTMENT THAT ARE BEING BROUGHT AGAINST HIM. HE IS SPEAKING AT AN EVENT. LET'S GET OUT NOW TO BLOOMBERG'S DAVID GURA, WHO IS OUT IN NEW YORK AND HAS BEEN FOLLOWING NOT JUST THE LEGAL ACTION, BUT THE RESPONSE OF THE MAYOR. DAVID? DAVID: I WAS STRUCK BY THE TONE FROM THE MAYOR, MIRRORING WHAT WE HEARD FROM HIM LAST NIGHT WHEN HE RELEASED A SHORT VIDEO FROM GRACIE MANSION, WHERE HE LIVES IN NEW YORK CITY, DECRYING THOSE CHARGES, BUT ALSO VOWING TO FIGHT THEM, AND REALLY EMPHASIZING THE FACT THAT HE THINKS HE IS GOING TO BE ABLE TO FIGHT THESE CHARGES AS HE CONTINUES AS MAYOR OF THIS CITY. THERE ARE A LOT OF SKEPTICS, AS HE ACKNOWLEDGED IN THAT STATEMENT. WE HEARD FROM THE MAYOR THIS MORNING. THEY THINK HE SHOULD NOT BE ABLE TO DO THAT.
HE IS ADAMANT THAT HE HAS BEEN FIGHTING THE SPECTER OF THESE ALLEGATIONS FOR MANY MONTHS AND SHOULD BE ABLE TO DO THAT GOING FORWARD. ED: MAYOR ADAMS HAS RESUMED SPEAKING. LET'S GO BACK TO IT. >> GOOD MORNING. MY NAME IS HAZEL DUKES.
I LIVE IN HARLEM. ED: AN ISSUE OF TIMING FOR WHICH I APOLOGIZE. YOU WERE SAYING? PLEASE CONTINUE. DAVID: WHAT WE WILL HAVE TO FOCUS ON IN THE HOURS TO COME IS WHAT THE RESPONSE IS FROM THE DEMOCRATIC PARTY TO WHAT THE MAYOR IS SAYING. WE HAVE HEARD FROM SOME
OFFICIALS HE IS GOING TO BE IN A PRIMARY IN THE NEXT FEW MONTHS IF HE RUNS FOR OFFICE ONCE AGAIN, AGAINST THE CURRENT COMPTROLLER AND PREVIOUS COMPTROLLER, BOTH OF WHOM HAVE CALLED ON HIM TO RESIGN. THERE IS A SMALL AND GROWING CHORUS OF DEMOCRATIC OFFICIALS IN NEW YORK WHO SAY HE SHOULD NOT CONTINUE TO DO THE JOB. WE HAVE NOT HEARD FROM HAKEEM JEFFRIES, THE RANKING MEMBER IN THE HOUSE, A BROOKLYN NIGHT LIKE THE MAYOR, SOMEONE HE HAS KNOWN FOR A LONG TIME. IF WE START TO SEE EROSION OF SUPPORT FROM SOME OF THESE LONGTIME OFFICIALS IN THE DEMOCRATIC PARTY IN NEW YORK AND MORE BROADLY, I THINK THAT IS GOING TO BE PRETTY SIGNIFICANT. AND IT IS A QUIRK OF NEW YORK CITY AND THE WAY THAT THE CITY AND THE STATE IS GOVERNED THAT KATHY HOCHUL DOES HAVE THE POWER TO SUSPEND THE MAYOR AND REMOVE THE MAYOR. NOBODY IS HAVING A SERIOUS CONVERSATION ABOUT THAT RIGHT NOW. AS THIS UNFOLDS, IF IT GETS
TALKED ABOUT MORE COME OF THIS IS SOMETHING THE GOVERNOR OF THE STATE COULD BE ABLE TO DO IF SHE WANTED. ED: DAVID GURA IN NEW YORK, TRACKING THE STORY. WE WILL CONTINUE TO TRACK THE SITUATIONS. WE WILL BE RIGHT BACK. ED: IF YOU ARE JUST JOINING US, NEW YORK MAYOR ERIC ADAMS HAS BEEN SPEAKING AFTER BEING INDICTED ON BRIBERY AND FRAUD CHARGES. WHAT HE SAID IS THAT HE WILL DEFEND HIMSELF AGAINST THOSE CHARGES, THAT IN THE MEANTIME WHILE THE CASE IS ONGOING, HE WILL CONTINUE TO PERFORM THE DUTIES OF MAYOR AND THE WORK OF MAYOR WILL CONTINUE.
A NOTE OF INTEREST FOR OUR AUDIENCE -- HE HAS HIRED ALEX SPIRO, AN ATTORNEY THAT AUDIENCE NUMBERS OF BLOOMBERG TECHNOLOGY WILL RECOGNIZE AS SOMEBODY WHO DEFENDED ELON MUSK IN THE PAST. WE WILL CONTINUE TO TRACK THE LATEST FROM NEW YORK AS MAYOR ADAMS SPEAKS. WE EXPECT MORE NEWS FROM THE AUTHORITIES IN THE COMING HOUR. MAYOR ADAM SAYING HE WILL DEFEND HIMSELF AGAINST THOSE INDICTMENT CHARGES. LET'S GET BACK TO TECHNOLOGY NEWS.
IRELAND IS GOING TO USE THE ALMOST 6 BILLION APPLE WAS MADE TO PAY TO IT IN TAXES FOR INFRASTRUCTURE PROJECTS. THAT IS ACCORDING TO THE NATION' AS PRIME MINISTER. THE SUM OF MONEY IS NOW SETTLED AFTER A RECENT RULING BY E.U. COURTS, ENFORCING A 2016 DECISION THAT IRELAND'S TAX FOR APPLE GAVE IT AN UNFAIR ADVANTAGE.
SIMON HARRIS OUTLINED THE PLAN FOR THE CASH IN AN INTERVIEW WITH MANUS CRANNY IN NEW YORK THIS WEEK. SIMON: I THINK IT IS APPROPRIATE IN OUR BUDGET THAT WE WOULD PROVIDE CLARITY AS TO THE PRINCIPLES WE WOULD APPLY IN HOW TO INVEST IT. I INSIST THOSE KEY AREAS ARE IN OUR WATER INFRASTRUCTURE, OUR ENERGY GRID, AND HOUSING SUPPLY.
THOSE ARE THREE AREAS THAT WOULD GIVE A BENEFIT TO THE COUNTRY'S ECONOMIC SECURITY INTO THE FUTURE. ED: IRELAND RELIES HEAVILY ON FOREIGN DIRECT INVESTMENT FROM THE U.S., AND A BIG CHUNK OF THAT COMES FROM BIG TECHNOLOGY COMPANIES. THIS WEEK, THE MINISTER FOR ENTERPRISE, TRADE, AND EMPLOYMENT, PETER BURKE, IS MEETING WITH THE TECH INDUSTRY AND INVESTORS ON A TRADE MISSION TO SILICON VALLEY AND THE BAY AREA. HE JOINS US IN SAN FRANCISCO. GOOD MORNING AND WELCOME TO
BLOOMBERG TECHNOLOGY, MINISTER. WHAT YOUR COLLIE AND NATION'S LEADER SAID ABOUT THE APPLE TAX MONEY IS IT WILL BE USED ON WATER, ENERGY, AND HOUSING INFRASTRUCTURE. BUT THE RELATIONSHIP WITH APPLE IS SO KEY. IN YOUR MEETINGS WITH DIFFERENT TECHNOLOGY COMPANIES, WHAT HAVE THE REPERCUSSIONS OF THAT RULING BEEN? HAS IT IMPACTED YOUR ABILITY TO NEGOTIATE OTHER DEALS AND HAVE AN ONGOING RELATIONSHIP WITH THOSE COMPANIES INTERESTED IN IRELAND? >> FIRST I WOULD SAY WE DON'T NEGOTIATE DEALS. WE HAVE A VERY INDEPENDENT REVENUE COMMISSION. IT HAS NOT BEEN REFERENCED AT ALL. I THINK PEOPLE SEE IT AS A
LEGACY ISSUE. IF YOU LOOK BACK OVER TIME, THESE WERE DECISIONS TAKEN BACK IN THE LATE 1990'S, EARLY 2000'S, IN TERMS OF OPINIONS THAT WERE ISSUED. IF YOU LOOK AT THE PRISM OF OUR MODERN TAX LEGISLATION, WHICH HAS CHANGED SIGNIFICANTLY OVER THE LAST NUMBER OF YEARS, WE HAVE BEEN A WORLD LEADER IN THE OECD PROCESS.
HAVING THE GLOBAL TAXATION AGREEMENT WORLDWIDE, WE ARE SEEING THE MOVES. EUROPE HAS BEEN A VERY EARLY ADOPTER ON THAT PROCESS. IT IS REALLY LOOKED AT THROUGH A PRISM OF OLD LEGACY ISSUES AND HAS NOT BEEN RAISED AT ALL. WE VERY MUCH AT THE FOREFRONT OF TRANSPARENCY.
WE ARE ONE OF THE HIGHEST LEVELS OF EXCHANGE AGREEMENTS THROUGHOUT THE E.U. AND INTERNATIONAL TAX AGREEMENTS AS WELL, WHICH IS VERY MUCH TO THE FOREFRONT WORLDWIDE. WE ARE A COUNTRY THAT CAN STAND SHOULDER TO SHOULDER IN TERMS OF TRANSPARENCY. AND VERY CLEARLY WE HAVE BEEN A LEADER IN GOING TO THE NEW GLOBAL TAXATION OECD PROCESS. ED: I'M SURE THE ELECTION IN
NOVEMBER, THE PRESIDENTIAL ELECTION, HAS COME UP. IN EITHER OUTCOME, DO YOU SEE ANY TANGIBLE IMPACTS TO THE TRADE AND TARIFF SITUATION AS IT WOULD IMPACT IRELAND? PETER: I DON'T. WE HAVE WORKED WITH MANY U.S. PRESIDENTS OVER THE YEARS AND HAVE HAD A LONG-STANDING CLOSE RELATIONSHIP. OBVIOUSLY, 10% OF AMERICANS HAVE IRISH HERITAGE. WE HAVE NINE FOR MEDIC MISSIONS IN THE U.S.. WE INCREASED OUR FOOTPRINT SIGNIFICANTLY OVER THE LAST COUPLE OF YEARS, AND WE CONTINUE TO DO THAT BECAUSE WE HAVE VERY STRONG CULTURAL TIES WITH THE UNITED STATES, AND OBVIOUSLY SHARE SO MUCH HERITAGE. THAT WILL CONTINUE. OUR DIPLOMATIC PRESENCE IS VERY
STRONG. WE ARE PRIVILEGED TO HAVE ENGAGEMENT EVERY SINGLE YEAR ON SAINT PATRICK'S DAY IN THE WHITE HOUSE AND WASHINGTON. THAT IS VERY IMPORTANT TO US. THAT WILL CONTINUE. AND WE ARE SET UP READING 100 YEARS OF THE MEDIC RELATIONS.
TAOISEACH WILL HEAD OVER TO CELEBRATE THE GREAT HISTORY WE HAVE HAD OVER THE LAST NUMBER OF DECADES. ED: BLOOMBERG TECHNOLOGY FOR QUITE A WHILE NOW HAS BEEN FOCUSED ON DATA CENTERS. I UNDERSTAND THAT HAS BEEN A FOCUS FOR YOU AS WELL. THIS MORATORIUM ON DATA CENTERS, PARTICULARLY IN DUBLIN ITSELF -- HOW IS THAT IMPACTING YOUR ABILITY TO ATTRACT INVESTMENT, BRING NEW DATA INFRASTRUCTURE TO THE COUNTRY? THAT IS THE PROCESS THAT IS HAPPENING AROUND THE WORLD RIGHT NOW. PETER: IF I MAY SET OF THE BACKGROUND -- THERE IS NOT A MORATORIUM IN THE COUNTRY. WE HAVE A VERY CLEAR POLICY. AT THE MOMENT, WE HAVE
CONSTRAINTS. GOING OUT TO 2030, LIKE ANY COUNTRY, WE HAVE A BIG ADVANTAGE NOW IN TERMS OF OUR ENERGY CAPACITY. WE HAVE A NUMBER OF OFFSHORE REGENERATION PROJECTS THAT ARE UNDERWAY, WITH CONTRACTS SIGNED ON THE EAST COAST. THAT IS GOING TO HAVE A CAPACITY OF 21 GIGAWATTS UP TO 2040. THAT WOULD BE DELIVERED BY 2040.
WE ARE SETTING OUT A ROADMAP TO GET TO THAT POINT. OUR INDEPENDENT REGULATOR SOME OF THE CRU, IS GOING TO REPORT IN THE NEXT NUMBER OF WEEKS, WHICH WILL HAVE A VERY STRONG POLICY ON LARGE ENERGY USERS AND WILL POINT A DIRECTION TOWARD A ROADMAP THAT WILL BE ABLE TO CONNECT TO A GRID. WE ARE VERY MUCH OPEN FOR BUSINESS.
WE KNOW THE VALUE DATA CENTERS PROVIDE. WE HAVE A VERY HIGH-TECH ECONOMY. OUT OF THE TOP 10 GLOBAL LEADERS, A CALL IRELAND THEIR HOME. ABOUT 175,000 PEOPLE EMPLOYED IN THAT SECTOR. ON HUNDRED 80 BILLION DOLLARS
OF EXPORTS. A HUGE AMOUNT OF VALUE TO THE IRISH ECONOMY. WE KNOW THAT DATA CENTERS ARE VERY MUCH INTEGRAL TO THAT PROCESS. THAT IS WHY WE WILL HAVE A SUSTAINABLE POLICY TO ENSURE THAT THOSE WHO INVEST HERE, THERE ARE NO SURPRISES. THEY KNOW WHAT THEY WILL GET. WE WILL CONTINUE TO UNDERWRITE
THEIR DEVELOPMENT INTO THE FUTURE. ED: IS THERE ANY SPECIFIC PLAN TO USE THE APPLE TAX MONEY THAT IS APPORTIONED TO ENERGY SPECIFICALLY FOR DATA CENTER SUPPORT IN THE CONTEXT OF ENERGY? PETER: WE ARE LOOKING AT MANY WAYS TO DEPLOY THAT FUNDING. AS AN ECONOMY, WE HAVE GONE FROM ABOUT 3.5 BILLION DOLLARS IN CAPITAL INVESTMENT IN 2017 UP TO 14.5 BILLION EURO NOW. YOU HAVE TO LOOK AT THE CAPACITY OF THE ECONOMY TO DELIVER INFRASTRUCTURE. WHEN WE LOOK AT A NUMBER OF AREAS, WITH OUR ENERGY INFRASTRUCTURE, WHICH IS VERY IMPORTANT, WE ARE THE MOST COMPETITIVE COUNTRY IN THE EURO ZONE.
WE ARE NUMBER FOUR IN THE EURO BOOK. AND SECONDLY, OUR WATER AND WASTEWATER IS VERY IMPORTANT. AND KEEPING UP OUR SKILLS BASE. AS A COUNTRY, WE ARE VERY CLEAR THAT OUR TALENT IS OUR MOST PRIZED RESOURCE.
WE HAVE THE MOST HIGHLY SKILLED, YOUNGEST WORKFORCE IN THE E.U. WE HAVE DOUBLED THE E.U. AVERAGE OF GRADUATES. AND PAYING DOWN OUR DEBT. SOVEREIGN WEALTH FUNDS WILL UNDERWRITE IRELAND'S FUTURE TO GROW, WHICH IS VERY IMPORTANT TO US. ED: YOU SAY YOU ARE ON A TRADE MISSION. HAVE YOU BEEN ABLE TO ATTRACT ANY NEW INVESTMENT THIS WEEK? PETER: IT IS EXCITING. I HAVE MET COMPANIES IN THE BAY
AREA AT THE VERY CUTTING EDGE OF TECHNOLOGY. HAVE A NEW IMPLEMENTATION DOCUMENT WITH THE COUNCIL. WE HAVE PUT TOGETHER TERTIARY PARTNERSHIPS WITH HIGHER EDUCATION AT STANFORD AND TRINITY COLLEGE AND YOU CC IN CORK. A LOT OF GOOD WORK HAS BEEN CARRIED OUT TO GROW THAT RELATIONSHIP. WE HAVE COMPANIES EMPLOYING 25,000 PEOPLE. IT IS VERY MUCH A MUTUAL BILATERAL RELATIONSHIP EMPLOYING MANY PEOPLE BACK HOME IN IRELAND.
VERY EXCITING COMPANIES. WE REALLY LOOK FORWARD TO ATTRACTING NEW INVESTMENT. BUT ALSO CRITICALLY IRELAND INVESTING MORE IN THIS AREA AS WELL. ENTERPRISE IRELAND, ONE OF OUR KEY STATE AGENCIES, IS INVESTED HEAVILY IN THIS SECTOR THROUGH SO MANY EXCITING COMPANIES WITH AN IRISH BACKGROUND. ED: PETER BURKE, THANK YOU VERY
MUCH. NEW YORK MAYOR ERIC HAS BEEN SPEAKING AFTER BEING INDICTED ON BRIBERY CHARGES AND ON FRAUD CHARGES. HE INTENDS TO DEFEND HIMSELF. AS THE CASE IS ONGOING, HE ALSO INTENDS TO CONTINUE TO GOVERN NEW YORK CITY. HE BASICALLY SAID THAT THE WORK OF RUNNING NEW YORK WILL CONTINUE. HE HAS TURNED TO ALEX SPIRO, AN ATTORNEY THAT REPRESENTED ELON MUSK IN LITIGATION IN RECENT MONTHS AND YEARS, IN THAT PROCESS. WE ALSO EXPECT THE PROSECUTORS IN THIS CASE TO SPEAK IMMINENTLY.
AND WE WILL BRING YOU THAT HERE ON BLOOMBERG TELEVISION. BUT TO RECAP, MAYOR ERIC ADAMS WILL DEFEND HIMSELF AND HE CONTINUES TO SPEAK IN THE FACE OF THOSE INDICTMENTS ON FRAUD AND BRIBERY CHARGES. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. IF YOU ARE SEEING IT FOR THE FIRST TIME, FINANCIAL MARKETS HAVE CHANGED DIRECTION IN THE LAST 30 MINUTES. WE SAW SIGNIFICANT EARLY GAINS AFTER THE MARKET OPENED IN TECH. THE NASDAQ 100 IS NOW UP 3/10 OF 1% BUT WHERE THERE IS CONTINUED STRENGTH IS SEMICONDUCTORS.
THE MAIN STORY IS MICRON, A MEMORY CHIPMAKER. WHAT WE ARE NOW LEARNING IS THAT FOR THE MEMORY CHIPMAKERS, IT IS HAPPENING TOO. YOU ARE GETTING MONEY SPENT ON NVIDIA BUT NOW MICRON IS SEEING A BENEFIT AND THAT WAS REFLECTED IN THE FORECAST FOR THE CURRENT PERIOD. WE WILL CONTINUE TO TRACK IT BECAUSE THAT IS A BIG MOVE IN MICRON. IN THE BACKGROUND, THERE WAS A
LOT MORE TO TALK ABOUT IN THE CONTEXT OF AI. LET'S TALK -- LET'S DISCUSS IT. -- I THOUGHT THAT IS WHERE WE WOULD START. LET'S DO THAT. META IS NOW DOWN MODESTLY, 6/10 OF A PERCENT. THERE WAS A NOTABLE MOVE
HIGHER, THE MOMENT THAT ORION WAS UNVEILED. WHY DID INVESTORS REACT THAT WAY? >> ORION WAS PRETTY INTERESTING TO SEE, WE ARE GETTING CLOSER AND CLOSER TO THE MINORITY REPORT MOMENT IN REAL LIFE. AT LEAST THAT IS WHAT IT SEEMS LIKE WITH THE COMBINATION OF THE GLASSES AS WELL AS THE WRISTBAND THAT CAN CONTROL OR SENSE MOVEMENT IN TERMS OF HOW YOU INTERACT WITH IT. IT WAS A REALLY INTERESTING TIME . THE OVERALL INVESTMENT INTO AI AND AR AND ALL THE SYNERGIES YOU ARE SEEING ACROSS THE LANDSCAPE. ED:
YOU AND I HAVE DISCUSSED THE MARKET SO OFTEN. ONE SESSION IS NOT WORTH DWELLING ON BUT IT IS AN INTERESTING MOMENT RIGHT NOW. MICRON CONTINUES TO PUSH HIGHER. THERE IS EVIDENCE THAT IT IS BROAD, NOT JUST GPU'S. THERE IS EVIDENCE IN THE FORECAST IN SALES.
WHAT DOES THAT TELL YOU? HOW ARE YOU ADJUSTING YOUR MODEL? AYAKO: WITH THE MEMORY SIDE OF THINGS, THEY ARE GOING THROUGH AN INVENTORY CYCLE. IT HAS BEEN SOFTER OVER THE LAST TWO YEARS, SO NOW YOU ARE STARTING TO SEE RECOVERY ON THE NAN SIDE AND YOU ARE SEEING THIS GROWTH VEHICLE WITH HIGH-BANDWIDTH MEMORY. NOT ONLY ARE YOU SEEING IT IMPACT MICRON, BUT RESEARCH IS A MAKER OF A LOT OF THE EQUIPMENT, SO YOU ARE SEEING THAT POTENTIAL GROWTH IN 2025 AND THAT COULD CONTINUE BEYOND 2025 AS WELL. ED: THE MARKETS GOT THAT TRIFECTA THIS MORNING. ECONOMIC DATA, CENTRAL-BANK
NOISE AND EARNINGS. RIGHT NOW FOR THE TECHNOLOGY INVESTOR, HOW DO YOU PORTION YOUR FOCUS TO EACH OF THOSE? AYAKO: WITH TECHNOLOGY, WE HAVE TO TAKE A VERY LONG TERM VIEW. AT LEAST THAT IS WHAT WE DO AT WEALTH ENHANCEMENT GROUP. TECH IS GOING TO BE A PART OF EVERY INVESTOR'S PORTFOLIO, BUT YOU BALANCE IT OUT WITH SOME OF THE MORE CYCLICAL AREAS OF THE MARKET IN WHICH WE CAN SEE STRENGTH IN THE OVERALL ECONOMY. THOSE AREAS THAT ARE ALSO SENSITIVE TO THE DIRECTION OF INTEREST RATES IN WHICH THE FED DOES CONTROL A LOT OF THAT. A VERY DIVERSIFIED PORTFOLIO IS
SOMETHING WE ADVOCATE FOR, BUT I THINK TECHNOLOGY PLAYS A BIG LEAD IN THAT. ED: RIGHT NOW, WHAT IS THE DIRECTION OF TRAVEL FOR TECHNOLOGY FOR THE REST OF THIS YEAR? YAHAIRA: -- AYAKO: FOR THE REST OF THE YEAR, I THINK THINGS CAN BE CHOPPY BUT WHAT YOU WON'T ALWAYS LEAN INTO IS WHAT IS GOING TO HELP YOU SLEEP AT NIGHT? ALLOW YOUR PORTFOLIO TO CONTINUE TO GROW. THAT IS WHERE WE WANT TO MAKE SURE THAT REGARDLESS OF WHAT THE MACROENVIRONMENT GIVES US, WE ARE INVESTED IN COMPANIES THAT HAVE HIGH QUALITY AND STRONG GROWTH PROSPECTS IN THE FUTURE. ED: RIGHT NOW, ALL OF OUR FOCUS IS ON U.S. NAMES AND THE ACTIVITIES HERE, BUT DO YOU EVER LOOK FURTHER AFIELD TO EUROPE OR ASIA? AYAKO: ABSOLUTELY. HAVING A DIVERSE PORTFOLIO ACROSS THE GLOBE IS SOMETHING WE ADVOCATE FOR, SIMPLY BECAUSE YOU NEVER KNOW WHEN THINGS TURN AROUND, AND ONE OF THE MAJOR DRIVERS IS THE DIRECTION OF THE U.S. DOLLAR.
WE THINK THAT THE U.S. DOLLAR CAN WEAKEN A LITTLE BIT, GIVEN THE DIRECTION OF INTEREST RATES. AND INTERNATIONAL AND EMERGING-MARKET STOCKS CAN BENEFIT. ED: WE EXPECT TO HEAR FROM THE PROSECUTORS IN THE INDICTMENT OF NEW YORK MAYOR ERIC ADAMS VERY SOON.
WE MAY HAVE TO MOVE TO THAT BUT BEFORE WE LOSE YOU, I WANT TO ASK SOMETHING THAT OTHER INVESTORS ARE NOW ASKING THEMSELVES. HOW IMPORTANT IS IT FOR YOU TO GET HANDS-ON WITH TECHNOLOGY? THINK ABOUT WHAT META SHOWED US YESTERDAY, BUT ALSO LLAMA USING THAT AI DEVICE. IS THAT SOMETHING THAT INFORMS YOUR INVESTMENT THESIS? AYAKO: BOTH USING IT AND SEEING OTHERS USE IT. IT IS NOT JUST MYSELF, BUT PEOPLE ACROSS ALL AGE GROUPS AND DEMOGRAPHICS, I WANT TO SEE HOW PEOPLE ARE ENGAGING WITH THE TECHNOLOGY. YOUNGER PEOPLE ARE MUCH MORE ADEPT AT ADOPTING NEW TECHNOLOGY, BUT YOU ALSO WANT TO SEE HOW CAN OLDER PEOPLE ADAPT TO IT AS WELL, AND INTEGRATE IT INTO THEIR LIVES, BECAUSE THAT IS GOING TO PROVIDE A LARGER MARKET AND BETTER GROWTH OVER THE LONG TERM. ED: I THINK BACK TO WIN YOU AND I WERE DISCUSSING NVIDIA'S EARNINGS.
AYAKO YOSHIOKA, THANK YOU. LET'S HEAD OUT TO THE PROSECUTORS IN THE INDICTMENT OF NEW YORK MAYOR ERIC ADAMS. >> AS THE INDICTMENT ALLEGES, MEIER ADAMS ENGAGED IN A LONG-RUNNING CONSPIRACY IN WHICH HE SOLICITED AND KNOWINGLY ACCEPTED ILLEGAL CAMPAIGN CONTRIBUTIONS FROM DONORS AND CORPORATIONS. AS WE ALLEGE, MAYOR ADAMS TOOK THESE CONTRIBUTIONS EVEN THOUGH HE KNEW THEY WERE ILLEGAL. EVEN THOUGH HE KNEW THESE CONTRIBUTIONS WERE ATTEMPTS BY A TURKISH GOVERNMENT OFFICIAL AND TURKISH BUSINESSMEN TO BUY INFLUENCE WITH HIM.
WE ALSO ALLEGE THE MAYOR SOUGHT AND ACCEPTED WELL OVER 00,000 IN LUXURY TRAVEL BENEFITS, FROM SOME OF THE SAME FOREIGN ACTORS WHO ARRANGED THE ILLEGAL CAMPAIGN CONTRIBUTIONS. THESE BENEFITS INCLUDED FREE INTERNATIONAL BUSINESS CLASS FLIGHTS AND OPULENT HOTEL ROOMS IN FOREIGN CITIES. THE MAYOR HAD A DUTY TO DISCLOSE THESE GIFTS ON HIS ANNUAL PUBLIC DISCLOSURE FORMS SO THE PUBLIC COULD SEE WHO WAS GIVING HIM WHAT. AS WE ALLEGE, YEAR AFTER YEAR AFTER YEAR, HE KEPT THE PUBLIC IN THE DARK. HE TOLD THE PUBLIC HE RECEIVED NO GIFTS, EVEN THOUGH HE WAS SECRETLY BEING SHOWERED WITH THEM.
WE ALLEGE THAT ADAMS EXCEPTED THESE BENEFITS KNOWING THEY WERE GIVEN TO HIM BECAUSE OF HIS POSITION. IN EXCHANGE FOR SOME OF THOSE BENEFITS, HE INTERVENED IN THE NEW YORK CITY FIRE DEPARTMENT'S INSPECTION PROCESS FOR A BUILDING OWNED AND OPERATED BY THE TURKISH GOVERNMENT, ALLOWING IT TO OPEN EVEN THOUGH IT HAD NOT PASSED A FIRE INSPECTION. THE CORRUPTION ALLEGED IN THE INDICTMENT IS LONG-RUNNING. AS WE ALLEGE, ADAMS'S SOLICITATION OF ILLEGAL CAMPAIGN CONTRIBUTIONS BEGAN IN 2018.
AFTER HE STARTED RAISING FUNDS FOR HIS 2021 MAYORAL CAMPAIGN, HE AGREED TO TAKE CONTRIBUTIONS OFFERED I MULTIPLE TURKISH BUSINESSMEN -- OFFERED BY MULTIPLE TURKISH BUSINESSMEN, SOME OF WHOM HE MET IN TURKEY. ADAMS KNEW THESE INDIVIDUALS CANNOT LEGALLY DONATE IN A U.S. ELECTION. FEDERAL LAW CLEARLY PROHIBITS FOREIGN DONATIONS.
THAT IS HOW WE PROTECT OUR ELECTIONS FROM FOREIGN INFLUENCE. ADAMS DIRECTED HIS STAFF TO PURSUE THIS ILLEGAL MONEY TO SUPPORT HIS CAMPAIGN FOR MAYOR. AS WE ALLEGE, ADAMS CONTINUED TO PURSUE FOREIGN MONEY IN SECRET, WELL INTO 2021. IT DID NOT STOP WITH HIS FIRST CAMPAIGN. AS WE ALLEGE IN 2023, THE MAYOR REKINDLED THESE CORRUPT RELATIONSHIPS, SEEKING MORE ILLEGAL CAMPAIGN CONTRIBUTIONS FROM SOME OF THE SAME FOREIGN SOURCES TO SUPPORT HIS REELECTION CAMPAIGN.
ADAMS ALSO TOOK CONTRIBUTIONS THAT BROKE OTHER LAWS. AS WE ALLEGE, HE SOUGHT CONTRIBUTIONS FROM BUSINESSMEN, FAR IN EXCESS OF WHAT THE LAW ALLOWED. HE ALSO ALLEGEDLY SOUGHT CONTRIBUTIONS FROM FOREIGN CORPORATIONS, WHICH ARE NOT ALLOWED TO CONTRIBUTE AT ALL IN NEW YORK CITY ELECTIONS. MANY OF THOSE ILLEGAL CORPORATE
CONTRIBUTIONS WERE ORGANIZED BY THE SAME PEOPLE WHO ORGANIZED THE ILLEGAL FOREIGN CONTRIBUTIONS. ADAMS ALLEGEDLY DISGUISED THEM ALL IN THE SAME WAY, BY ACCEPTING THE MONEY THROUGH SO-CALLED STRAW DONORS. A STRAW DONOR CONTRIBUTES SOMEONE ELSE'S MONEY, HIDING THE ILLEGAL SOURCE SUCH AS A FOREST BIZ -- A FOREIGN BUSINESSMAN, A WEALTHY NEW YORKER WHO HAS ALREADY CONTRIBUTE IN THE MAX AMOUNT ALLOWED.
ADAMS CIRCUMVENTED ALL OF THESE LAWS, TAKING CONTRIBUTIONS FROM EXACTLY THE SOURCES THE LAW PROHIBITS, ALL TO BENEFIT HIS MAYORAL CAMPAIGNS. ADAMS ALSO PERSONALLY BENEFITED FROM THE ILLEGAL CONDUCT ALLEGED IN THE INDICTMENT. ADAMS SOLICITED AND ACCEPTED OVER 00,000 IN LUXURY TRAVEL BENEFITS FOR YEARS FROM WEALTHY TURKISH BUSINESS PEOPLE AND AT LEAST ONE TURKISH GOVERNMENT OFFICIAL SEEKING TO GAIN INFLUENCE OVER HIM. ADAMS STARTED EXCEPTING UNDISCLOSED LUXURY TRAVEL BENEFITS AS EARLY AS 2016.
HE TOOK THESE BENEFITS NEARLY EVERY YEAR THROUGH 2021. HERE ARE SOME OF THE BENEFITS WE UNCOVERED DURING OUR INVESTIGATION. IN 2016, ADAMS FLEW TO INDIA THROUGH TURKEY, AND RECEIVED TWO FREE ROUND-TRIP UPGRADES FOR BUSINESS CLASS SEATS, THE HIGHEST CLASS ON TURKEY'S NATIONAL AIRLINE. THOSE UPGRADES WERE WORTH MORE THAN 2,000 AND NONE OF IT WAS PUBLICLY DISCLOSED. IN 2017, ADAMS EXCEPTED FREE BUSINESS CLASS TICKETS FOR HIMSELF AND HIS TRAVEL COMPANIONS TO FRANCE, TURKEY AND CHINA. HE WAS PUT UP IN THE BENTLEY
SUITE IN THE SAINT REGIS HOTEL IN ISTANBUL, ALL OF THAT WAS WORTH MORE THAN $41,000 AND NONE OF IT WAS PUBLICLY DISCLOSED. ALSO IN 2017, HE FLEW TO CHINA, THROUGH TURKEY, EXCEPTING TWO FREE BUSINESS CLASS TICKETS FOR HIMSELF AND A COMPANION. THOSE WERE WORTH MORE THAN 6,000 AND NONE OF IT WAS DISCLOSED. IN 20 HE FLEW TO HUNGARY THROUGH TURKEY -- IN 2018, HE FLEW TO HUNGARY THROUGH TURKEY.
WORTH MORE THAN 2,000 AND NONE OF IT WAS PUBLICLY DISCLOSED. IN 2019 HE FLEW TO TURKEY AND ACCEPTED A FREE UPGRADE TO BUSINESS CLASS FOR HIS COMPANION AND A FREE STAY AND A LAVISH SUITE AT THE SAINT REGIS HOTEL IN INSTEAD BULL -- IN AND STAND -- ISTANBUL. IN 2020 ONE, ADAMS SOLICITED BUSINESS CLASS TICKETS TO ISTANBUL, STAYS AT LUXURY HOTELS AND RESORTS, YACHT TOURS AND MEALS. HE HAS TO PAY A NOMINAL FEE FOR ALL OF THIS IN ORDER TO DISGUISE WHAT WE ALLEGE WERE IN FACT BRIBES. HE CANCELED THAT TRIP AT THE LAST MINUTE, BUT THE BENEFITS HE SOLICITED WERE WORTH MORE THAN $21,000. LATER IN 2021, ADAMS FLEW TO
GHANA THROUGH TURKEY AND EXCEPTED FREE BUSINESS CLASS TICKET UPGRADES AND OTHER GIFTS WHILE HE WAS ON A LAYOVER IN ISTANBUL. THOSE BENEFITS WERE WORTH MORE THAN 2,000 AND LIKE THE OTHER BENEFITS I HAVE JUST RUN THROUGH, NONE OF IT WAS PUBLICLY DISCLOSED. I WANT TO BE CLEAR. THESE UPGRADES AND FREEBIES WERE NOT PART OF SOME FREQUENT FLYER OR LOYALTY PROGRAM AVAILABLE TO THE GENERAL PUBLIC. AS WE ALLEGE, THIS WAS A
MULTIYEAR SCHEME TO BUY FAVOR WITH A SINGLE NEW YORK CITY POLITICIAN ON THE RISE, ERIC ADAMS. THIS IS A CHART WITH ALL OF THE UNDISCLOSED TRAVEL BENEFITS THAT WE UNCOVERED DURING THE INVESTIGATION. WE CAN LIST IT ALL OUT HERE. 2016, 2017, 2019, 2021. THE DESTINATION. INDIA, ALL THE WAY TO GHANA. THE BENEFITS, THE FREE UPGRADES
OR TICKETS, THE HOTEL STAYS. AND THE VALUE. IF YOU SUM UP ALL THE DOLLAR AMOUNTS, YOU GET MORE THAN 00,000. EVERY SINGLE TRIP THAT WE LIST HERE WAS UNDISCLOSED. AS WE ALLEGE IN THE INDICTMENT, IN ADDITION TO NOT DISCLOSING THESE BENEFITS, ADAMS SOMETIMES CREATED FAKE PAPER TRAILS TO TRY AND COVER UP THE TRAVEL BENEFITS HE SOLICITED AND RECEIVED. LET ME GIVE YOU ONE EXAMPLE. ADAMS WROTE EMAILS TO HIS STAFF, SUGGESTING HE PAID FOR HIS 2017 BUSINESS CLASS FLIGHTS ON THE TURKISH AIRLINE, WHEN AS WE ALLEGE HE DID NOT. THOSE FLIGHTS WERE WORTH A LOT
OF MONEY. ONE TICKET ALONE COSTS MORE THAN 0,000. A MONTH AFTER TAKING THE FLIGHTS, ADAMS SENT AN EMAIL TO A STAFF MEMBER, SAYING HE LEFT CASH IN HER DESK DRAWER AND THAT SHE SHOULD SEND THE MONEY TO THE TURKISH AIRLINE TO PAY FOR A TRIP HE HAD ALREADY TAKEN. AS THE INDICTMENT MAKES CLEAR, THAT IS JUST A CLUMSY COVER-UP. JUST BECAUSE ADAMS RECEIVED BENEFITS FOR FREE DOESN'T MEAN THERE WEREN'T STRINGS ATTACHED. AS WE ALLEGE, A PARTICULAR
TURKISH GOVERNMENT OFFICIAL BEHIND MANY OF THE BENEFITS ADAMS SOUGHT AND ACCEPTED GAVE ADAMS ALL OF THESE THINGS TO GAIN INFLUENCE OVER HIM. WE ALLEGE ADAMS KNEW THAT AND TOOK THE BENEFITS ANYWAY. WE ALLEGE THAT WHEN THE TURKISH GOVERNMENT OFFICIAL NEEDED HIM, ADAMS ALSO TOOK CORRUPT OFFICIAL ACTION IN EXCHANGE FOR SOME OF THE LUXURY TRAVEL BENEFITS. IN 2021, THE TURKISH GOVERNMENT
OFFICIAL WAS TRYING TO OPEN A BRAND-NEW HIGH-RISE BUILDING IN MANHATTAN THAT WOULD HOUSE TURKEY'S CONSULATE. THERE WAS A SIGNIFICANT TIME PRESSURE BECAUSE THE TURKISH OFFICIAL DESK REALLY NEEDED THE BUILDING TO BE OPEN IN TIME FOR A VISIT FROM TURKEY'S PRESIDENT. THE BUILDING WAS IMPORTANT TO THE OFFICIAL AND IT WAS IMPORTANT TO TURKEY.
THE FDNY'S FIRE SAFETY PROFESSIONALS WOULD NOT LET THE BUILDING OPENED BECAUSE THE BUILDING HAD NOT PASSED A FIRE INSPECTION. SOME OF THE PEOPLE IN FDNY THOUGHT THE BUILDING HAD SO MANY ISSUES AND DEFECTS THAT IT WAS NOT SAFE TO OCCUPY, THE TURKISH OFFICIAL SENT WORD TO ADAMS THAT IT WAS QUOTE, HIS TURN TO SUPPORT TURKEY. AS WE ALLEGED, ADAMS DELIVERED, PRESSURING THE FIRE DEPARTMENT TO LET THE BUILDING OPEN.
THE FDNY OFFICIALS WERE CONVINCED THEY WOULD LOSE THEIR JOBS IF THEY DIDN'T BACK DOWN, SO THEY DID. THEY GOT OUT OF THE WAY AND LET THE BUILDING OPEN. THE TURKISH OFFICIAL GOT WHAT HE WANTED. AS WE EXPLAIN IN THE
INDICTMENT, JUST FOUR DAYS AFTER ADAMS HELD UP HIS END OF THE BARGAIN, HE WENT RIGHT BACK TO SOLICITING MORE TRAVEL BENEFITS FROM THE TURKISH AIRLINES. I WANT TO MAKE THREE THINGS CRYSTAL CLEAR. FIRST, THE CONDUCT ALLEGED IN THE INDICTMENT, THE FOREIGN MONEY, THE CORPORATE MONEY, THE BRIBERY, THE YEARS OF CONCEALMENT IS A BREACH OF THE PUBLIC TRUST. PUBLIC OFFICE IS A PRIVILEGE. WE ALLEGE THAT MAYOR ADAMS
ABUSED THAT PRIVILEGE AND BROKE THE LAW, LAWS DESIGNED TO ENSURE THAT OFFICIALS LIKE HIM SERVE THE PEOPLE, NOT THE HIGHEST BIDDER, NOT A FOREIGN BIDDER, CERTAINLY NOT A FOREIGN POWER. THESE ARE BRIGHT RED LINES AND WE ALLEGE THE MAYOR CROSSED THEM AGAIN AND AGAIN FOR YEARS. THAT IS THE ONLY REASON WE ARE HERE TODAY. SECOND, THIS INVESTIGATION CONTINUES. WE CONTINUE TO DIG AND WE WILL HOLD MORE PEOPLE ACCOUNTABLE. I ENCOURAGE ANYONE WITH INFORMATION TO COME FORWARD AND DO SO BEFORE IT IS TOO LATE.
THIRD, THE SOUTHERN DISTRICT OF NEW YORK REMAINS COMMITTED TO ROOTING OUT CORRUPTION WITHOUT REGARD TO PARTISAN POLITICS. WE ARE NOT FOCUSED ON THE RIGHT OR THE LEFT. WE ARE FOCUSED ONLY ON RIGHT AND WRONG.
THAT IS OUR DUTY AND WE WILL FULFILL IT. TODAY'S CHARGES ARE THE PRODUCT OF A TREMENDOUS PARTNERSHIP. I WANT TO THANK OUR PARTNERS AT THE FBI, THE NEW YORK CITY APARTMENT OF INVESTIGATION WHO HAVE BEEN WITH US EVERY STEP OF THE WAY. FINALLY, I WANT TO COMMEND THE OUTSTANDING CAREER PROSECUTORS, HANDLING THIS CASE. AND THE CHIEFS OF THE PUBLIC CORRUPTION UNIT. IT IS NOW MY PLEASURE TO TURN THE PODIUM OVER TO THE FBI ASSISTANT DIRECTOR IN CHARGE.
>> GOOD MORNING AND THANK YOU FOR BEING HERE. THE INDICTMENT OF A SITTING MAYOR IS NOT JUST ANOTHER HEADLINE. IT IS A STINGING REMINDER THAT NO ONE IS ABOVE THE LAW, OR BEYOND REPROACH AND IT SERVES AS A SOBERING MOMENT FOR ALL OF US TO PLACE OUR TRUST IN ELECTED OFFICIALS -- WHO PLACE OUR TRUST IN ELECTED OFFICIALS. TODAY'S INDICTMENT SENDS A POWERFUL MESSAGE TO EVERY ELECTED OFFICIAL IN THIS COUNTRY.
PUBLIC SERVICE SHOULD BE A NOBLE CALLING. WHEN THAT IS PERVERTED BY GREED AND DISHONESTY, IT ROBS US OF OUR TRUST. IT IS A PACKED BETWEEN LEADERS -- IT IS A PACT BETWEEN LEADERS AND THE COMMUNITY BUILT ON TRUST, ACCOUNTABILITY AND TRANSPARENCY. WHEN THAT PACT IS BROKEN, THE CONSEQUENCES RIPPLE FAR BEYOND ONE OFFICE OR ONE ELECTION CYCLE. WE KNOW NOT ALL LEADERS ARE CORRUPT. WE KNOW THERE ARE COUNTLESS
PUBLIC SERVANTS WHO WAKE UP EVERY DAY WITH THE INTENTION OF DOING RIGHT BY THEIR CONSTITUENTS. BUT WE CANNOT IGNORE THE SHADOW CAST BY MOMENTS LIKE THIS. WHEN TRUST IS ERODED, IT TAKES YEARS, SOMETIMES DECADES TO REBUILD. -- NOT JUST ON THE INDICTED OFFICIAL BUT ON EVERY OTHER PUBLIC OFFICIAL WHO MUST NOW WORK HARDER TO EARN THE PUBLIC'S CONFIDENCE IN THEM. IT IS IMPORTANT TO REMEMBER ACCOUNTABILITY ISN'T JUST ABOUT PUNISHING THOSE WITH ALLEGED WRONGDOINGS.
IT'S ABOUT LIFTING THE COMMUNITIES THEY HAVE LET DOWN. IT'S ABOUT REBUILDING, RESTORING AND REIMAGINING WHAT PUBLIC SERVANTS CAN AND SHOULD DO. IT IS UP TO US TO DEMAND MORE FROM OUR LEADERS, TO HOLD THEM TO HIGHER STANDARDS AND REMIND THEM THAT THE POWER OF PUBLIC OFFICE SHOULD NEVER BE ABUSED. WHILE SOME MAY BE DISAPPOINTED TODAY, LET ME ENCOURAGE YOU NOT TO BE DEFEATED. THE STRENGTH OF OUR COMMUNITIES, OUR FAITH IN ONE ANOTHER, AND OUR COLLECTIVE RESILIENCE ARE FAR GREATER THAN THE ALLEGED FAILINGS OF ANY ONE INDIVIDUAL. IN CLOSING, I WOULD LIKE TO
THANK THE U.S. ATTORNEY FOR THE SOUTHERN DISTRICT OF NEW YORK, AND HIS OFFICE, COMMISSIONER -- AND THE NEW YORK CITY DEPARTMENT OF INVESTIGATION AND OUR TEAM AS WELL AS MY TEAM, THE PUBLIC CORRUPTION SQUAD AT FBI NEW YORK. THANK YOU. >> I WOULD LIKE TO WELCOME THE COMMISSIONER FROM THE NEW YORK CITY DEPARTMENT OF INVESTIGATION. >> THANK YOU. GOOD MORNING.
TODAY FOR THE FIRST TIME IN NEW YORK CITY'S MODERN HISTORY, WE ANNOUNCE CRIMINAL CHARGES AGAINST THE SITTING MAYOR OF NEW YORK CITY. AS OUR HIGHEST ELECTED OFFICIAL, THE MAYOR SHOULD SET THE STANDARD FOR ALL OF CITY GOVERNMENT, AND EXEMPLIFY THE INTEGRITY, TRANSPARENCY AND DEDICATION TO SERVING THE PUBLIC THAT ALL NEW YORKERS DESERVE. INSTEAD, THE INDICTMENT UNSEALED TODAY ALLEGES THAT MAYOR ADAMS ABUSED HIS POWER AND POSITION FOR NEARLY A DECADE, AS BROOKLYN BOROUGH PRESIDENT AND MAYOR, TO ENRICH HIMSELF AND HIS MAYORAL CAMPAIGNS. AS CHARGED, HE SOUGHT AND RECEIVED ILLEGAL CAMPAIGN CONTRIBUTIONS, LUXURY TRAVEL AND OTHER PERSONAL BENEFITS FROM FOREIGN NATIONALS, AS WELL AS INDIVIDUALS AND BUSINESSES. HE ALLEGEDLY TOOK STEPS TO CONCEAL THOSE CONTRIBUTIONS AND BENEFITS AND INVOLVED CITY EMPLOYEES AND CAMPAIGN STAFF IN THAT CONCEALMENT. AS THE INDICTMENT EXPLAINS, THIS KIND OF CORRUPTION HAS REAL COST TO THE CITY AND THE PUBLIC.
AS ALLEGED, THE MAYOR'S 2021 CAMPAIGN FALSELY CERTIFIED COMPLIANCE WITH CAMPAIGN FINANCE LAWS TO CONCEAL THOSE ILLEGAL CAMPAIGN CONTRIBUTIONS. AS A RESULT OF THOSE FALSE CERTIFICATIONS, RECEIVED OVER 0 MILLION IN PUBLIC MATCHING FUNDS. THE MAYOR'S ALLEGED ACCEPTANCE AND CONCEALMENT OF ILLEGAL CONTRIBUTIONS AND PERSONAL BENEFITS GAVE OVERSEAS BENEFACTORS, WEALTHY INDIVIDUALS AND BUSINESSES UNDUE INFLUENCE OVER THE MAYOR. INFLUENCE THAT FEDERAL AND LOCAL LAWS SEEK TO PREVENT. AS CHARGED, IN EXCHANGE FOR
CERTAIN PERSONAL BENEFITS, THE MAYOR PRESSURED THE NEW YORK CITY FIRE DEPARTMENT TO FORGO A REQUIRED FIRE SAFETY INSPECTION BEFORE THE OPENING OF THE NEW TURKISH CONSULATE BUILDING. AS THE CITY'S INSPECTOR GENERAL, THE DEPARTMENT OF INVESTIGATION CONDUCTS ITS INVESTIGATIONS CONFIDENTIALLY, AND WHOLLY INDEPENDENT OF CITY HALL, WE HANDLED THIS INVESTIGATION AS WE WOULD ANY OTHER, FOLLOWING THE FACTS AND SEEKING TO HOLD WRONGDOERS ACCOUNTABLE, NO MATTER THEIR ROLE OR TITLE. UNIQUE ACCESS TO CITY RECORDS AND EXPERTISE IN MATTERS OF CITY GOVERNMENT MAKE US A CRITICAL PART -- ED: YOU'VE BEEN LISTENING TO THE U.S. ATTORNEY IN MANHATTAN FOR THE SOUTHERN DISTRICT OF NEW YORK. ON YOUR SCREEN IS THE NEW YORK DIRECTOR OF INVESTIGATIONS COMMISSION, ALONGSIDE THE ASSISTANT DIRECTOR IN CHARGE OF THE NEW YORK FIELD OFFICE OF THE FBI. THEY'VE BEEN DISCUSSING THE
INDICTMENT CHARGES OF FRAUD OR BRIBERY AGAINST NEW YORK CITY MAYOR ERIC ADAMS. DAVID GURA HAS BEEN TRACKING THE PRESS CONFERENCE. THEY HAVE EXPLAINED THE CHARGES. DAVID: AND I WOULD NOTE THAT EACH OF THEM EMPHASIZED THAT THIS IS THE FIRST TIME A SITTING MAYOR OF NEW YORK CITY HAS BEEN INDICTED AND THAT DID NOT COLOR THE WAY THEY APPROACH THIS PARTICULAR CASE. WE SEE THE MAYOR HAVING PLAYED FAST AND LOOSE WITH CAMPAIGN FINANCE LAWS. ALSO BEFORE THAT. DAMIEN WILLIAMS STRESSING THIS GOES BACK TO HIS TIME AS THE BROOKLYN BOROUGH PRESIDENT BEFORE HE BECAME THE MAYOR.
IT FOCUSES ON THESE STRAW DONATIONS. HOW THIS PLAYED OUT IN NEW YORK CITY, THERE IS SOMETHING HERE WHERE URI OR SOMEONE ELSE GAVE MONEY TO A CANDIDATE THAT WOULD BE MATCHED BY THE CITY BY EIGHT TO ONE RATIO. THAT'S TO ENCOURAGE MORE SMALL DOLLAR DONATIONS. . IN ELECTIONS HERE EFFECTIVELY WHAT THEY ARE ALLEGING IS THAT ERIC ADAMS WAS TAKING BIG CONTRIBUTIONS FROM CORPORATIONS AND THE TURKISH GOVERNMENT, PUTTING THEM THROUGH THAT MATCHING PROGRAM AND GETTING A LOT MORE MONEY AS A RESULT. MORE SALACIOUS ACCOUNTS OF HOW HE EXPLODED HIS RELATIONSHIP WITH TURKISH OFFICIALS TO GET A LOT OF LUXURY TRAVEL. WHAT STOOD OUT TO ME IS HOW MUCH HE USED ISTANBUL AS A CONDUIT, TO FLY THROUGH ON THESE TRIPS ABROAD AND AS THE PROSECUTOR SAID, GOT TENS OF THOUSANDS OF DOLLARS WORTH OF BENEFITS, LUXURIOUS TRAVEL BENEFITS AS A RESULT. ED:
WE HAVE 50 SECONDS BUT BEFORE THE PRESSER, MAYOR ERIC ADAMS DID SPEAK. WHAT DID HE SAY? DAVID: HE DENIED THESE ALLEGATIONS, SAID THEY WERE BASED ON LIES. HE HAS HIRED SOME VERY HIGH-PROFILE COUNSELORS. HE IS ADAMANT HE CAN CONTINUE IN HIS JOB AS MAYOR AS HE FIGHTS THIS. WE WILL SEE HOW THIS PLAYS OUT AND HOW THE DEMOCRATIC ESTABLISHMENT IN THE STATE AND THE CITY RESPONDS. ED: SOMETHING YOU SAID, THE ATTORNEY THAT ELON MUSK HAS USED REGULARLY IN ALL SORTS OF LITIGATION. MAYOR ADAMS HAS TURNED TO HIM
ON THIS OCCASION. DAVID GARA, THANK YOU. MORE ON THE INVESTIGATION AND ANY MARKET MOVES THROUGHOUT THE DAY HERE ON BLOOMBERG TELEVISION. NEW YORK MAYOR ERIC ADAMS INDICTED ON FRAUD AND BRIBERY CHARGES. THIS IS BLOOMBERG.
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