WEBVTT - Apple Shares Slide and AMD Faces Chinese Market Roadblocks 0:00:01.440 --> 0:00:05.120 From Marhart where Innovation of Money and Power Collie in 0:00:05.240 --> 0:00:06.760 Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.120 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.600 --> 0:00:27.040 I'm Caroline Heydet Bloomberg's World head quarters in New York, 0:00:27.440 --> 0:00:29.160 and I'm Met Ludlow in San Francisco. 0:00:29.360 --> 0:00:31.240 This is Bloomberg Technology coming up. 0:00:31.280 --> 0:00:34.360 Apple shares slide for a fifth day. That is, the 0:00:34.360 --> 0:00:36.800 iPhone maker sees a big drop in China sales to 0:00:36.840 --> 0:00:39.639 start off the week with a stock in correction. Will 0:00:39.680 --> 0:00:41.120 break down everything you need to know. 0:00:42.040 --> 0:00:45.640 Plus we stay with China as AMD faces a US 0:00:45.800 --> 0:00:50.120 roadblock in selling its artificial intelligence chips in the Chinese market. 0:00:50.360 --> 0:00:52.120 Bloomberg Exclusive ahead. 0:00:52.040 --> 0:00:54.200 And Bitcoin oh it hits a fresh record for the 0:00:54.240 --> 0:00:56.600 first time since its peak back in November twenty twenty one. 0:00:56.840 --> 0:00:59.160 We'll have full coverage of the digital currency market and 0:00:59.240 --> 0:01:02.720 those meancoin come up in the rush. There's so much 0:01:02.760 --> 0:01:04.800 more going on throughout this hour. Let's first check in 0:01:04.840 --> 0:01:07.200 on these markets because what bitcoins up. The rest of 0:01:07.240 --> 0:01:09.600 the market still trying to digest some of the run 0:01:09.640 --> 0:01:11.920 up that we've seen in particularly the AI related names, 0:01:12.040 --> 0:01:14.120 and we focus in on what is some mixed economic 0:01:14.640 --> 0:01:17.240 data today, the US showing some services weakness, and we 0:01:17.280 --> 0:01:19.880 look ahead to testimony coming from J. Powell on the Hill, 0:01:19.920 --> 0:01:23.680 his semi annual experience over in terms of the politicians, 0:01:23.760 --> 0:01:25.679 what will the grilling mean? How much will he be 0:01:25.840 --> 0:01:28.119 reticent to say that they're looking at those rate cuts 0:01:28.160 --> 0:01:30.679 anytime soon. We're looking at one point eight percent down 0:01:30.720 --> 0:01:32.640 on the Nasdaq now, so big tech feeling some of 0:01:32.640 --> 0:01:34.760 the big pain. As we talk China, ed, I want 0:01:34.800 --> 0:01:37.360 to focus a line on what's happening in China. These 0:01:37.400 --> 0:01:40.000 of course, these traded names here in the United States 0:01:40.000 --> 0:01:42.560 with the Golden Dragon index of five percentage point. As 0:01:42.560 --> 0:01:45.800 we see a five percent growth perspective coming from China 0:01:45.840 --> 0:01:48.240 that target, how will they get there and ultimately what 0:01:48.360 --> 0:01:50.120 is the debt that they're going to be issuing fueling 0:01:50.200 --> 0:01:52.400 in terms of the focus on AI on technology coming 0:01:52.440 --> 0:01:55.640 from China not en After buoying the stocks today in 0:01:55.680 --> 0:01:57.800 the Chinese names, I'm looking at the tenure yield off 0:01:57.800 --> 0:02:00.520 by seven basis points as we anticipate the FED and 0:02:00.600 --> 0:02:02.800 Jpowe's speech move on, have a look at what is 0:02:02.840 --> 0:02:04.960 happening in the asset class that we need to discuss 0:02:05.000 --> 0:02:07.680 a little bit today. Bitcuinn does manage to hit that 0:02:07.760 --> 0:02:10.520 all time high. We're above sixty nine thousand. Happened and 0:02:10.720 --> 0:02:13.040 just after about nine am, nine thirty ten am, but 0:02:13.040 --> 0:02:15.200 we're looking at a sixty six back to at the 0:02:15.200 --> 0:02:19.079 moments and profit taking is we hit that psychological level already. 0:02:19.120 --> 0:02:22.160 We've seen the market capitalization eclips that of twenty twenty 0:02:22.200 --> 0:02:24.400 one because of because there's more bitcoin in supply and 0:02:24.440 --> 0:02:27.639 they are worth up to one point sixty nine thousand. 0:02:27.919 --> 0:02:30.680 We're currently up nine point nine percent, as we'll see 0:02:30.800 --> 0:02:33.440 over the course of what has been a mega run 0:02:33.680 --> 0:02:36.799 throughout twenty twenty four, in particular twenty twenty three though 0:02:36.840 --> 0:02:38.720 they were in the doldrums, and twenty twenty two. But 0:02:38.760 --> 0:02:40.720 we are back at that level that we hit in 0:02:40.800 --> 0:02:43.360 November twenty twenty one. And what are you watching on 0:02:43.360 --> 0:02:43.959 the micro. 0:02:44.360 --> 0:02:46.200 There is a lot in the newsflow that is hitting 0:02:46.200 --> 0:02:50.399 technology shares. Tesla down almost five percent. A fire near 0:02:50.520 --> 0:02:55.359 its Berlin plant has halted production. Officials are investigating if 0:02:55.600 --> 0:02:57.560 arson was the cause of that fire. 0:02:57.800 --> 0:02:58.840 That's one news item. 0:02:58.840 --> 0:03:01.760 The other is data out a China that's a little softer, 0:03:02.160 --> 0:03:04.600 showing that maybe growth in China sales to Tesla not 0:03:04.639 --> 0:03:07.560 as strong that stock under pressure. Two other big stories 0:03:07.560 --> 0:03:09.520 we're watching. We're going to head to DC in just 0:03:09.520 --> 0:03:12.800 a minute. Bloomberg reporting that US officials are going to 0:03:12.960 --> 0:03:18.440 block AMD selling a made for China lower spec GPU 0:03:18.560 --> 0:03:21.839 or AI accelerator. It's something similar to what Nvidia did, 0:03:21.880 --> 0:03:24.240 and that seems to be weighing on shares two down 0:03:24.280 --> 0:03:26.480 one point eight percent, but in line with the broader market. 0:03:26.560 --> 0:03:29.160 Then you have Apple down two point eight percent, trading 0:03:29.160 --> 0:03:32.519 at its lowest level since October. We have data from 0:03:32.520 --> 0:03:35.840 Counterpoint Research, and that data shows that in the first 0:03:35.880 --> 0:03:39.480 six weeks of twenty twenty four, sales of the iPhone 0:03:39.520 --> 0:03:42.800 in China fell twenty four percent year on year compared 0:03:42.840 --> 0:03:45.120 to that same six week period a year ago. I 0:03:45.160 --> 0:03:47.160 want to bring in bloombergs Mark German and go through 0:03:47.160 --> 0:03:50.840 this data because the data also shows that other handset 0:03:50.880 --> 0:03:54.760 makers had a surge in sales, and so therefore the 0:03:54.840 --> 0:03:58.520 market ches picture in China, Mark is changing. With Apple 0:03:58.600 --> 0:04:02.560 dropping below sixteen percent and Huawei now back above sixteen percent. 0:04:02.720 --> 0:04:03.320 What's going on? 0:04:04.080 --> 0:04:04.200 You know? 0:04:04.360 --> 0:04:07.080 This is this is hugely significant. We've known for a 0:04:07.120 --> 0:04:09.960 couple quarters now that Apple has been running into roadblocks 0:04:10.520 --> 0:04:14.240 in China. Certainly that new Huawei phone has been very popular, 0:04:14.320 --> 0:04:18.920 that new made device with the locally designed processor we've known. 0:04:19.040 --> 0:04:22.800 For a while, there's been this sense of renewed nationalism 0:04:23.200 --> 0:04:25.760 in China where people are, you know, maybe putting Apple 0:04:25.800 --> 0:04:28.440 purchases a little bit on the back burner and focusing 0:04:28.800 --> 0:04:34.719 on purchases from state side companies. They also have been banned. 0:04:34.800 --> 0:04:38.440 There's been some bands and some organizations owned by governments, 0:04:38.480 --> 0:04:42.960 government entities where they don't want American made devices, they 0:04:42.960 --> 0:04:45.920 don't want Korean made devices like Samsung. So the impact 0:04:45.920 --> 0:04:48.880 has been there. But what's so interesting about this first 0:04:48.880 --> 0:04:51.760 six week's number is that it's actually a little bit 0:04:51.920 --> 0:04:54.880 worse than it seems on the surface. Right, let's do 0:04:54.920 --> 0:04:58.600 a comparison. So what happened last year? The iPhone fourteen 0:04:58.680 --> 0:05:00.720 Pro came out. Now, obviously that was not as a 0:05:00.760 --> 0:05:03.960 significant of an update as the iPhone fifteen Pro. So 0:05:04.040 --> 0:05:09.200 from that perspective, you'd think that a nicer phone, new design, titanium, 0:05:09.200 --> 0:05:11.680 that would sell better. But then we also remember that 0:05:11.720 --> 0:05:14.600 there were no supply chain issues this year and last 0:05:14.640 --> 0:05:17.600 year there were significant supply chain issues. There was a 0:05:17.640 --> 0:05:19.960 lot of pent up demand for the iPhone in the 0:05:19.960 --> 0:05:22.840 first six weeks of twenty twenty three, because you really 0:05:22.880 --> 0:05:26.080 couldn't find an iPhone fourteen Pro or Promax at the 0:05:26.160 --> 0:05:29.159 tail end of twenty twenty two. So not only is 0:05:29.200 --> 0:05:31.960 Apple down, they're down in comparison to a phone that 0:05:32.040 --> 0:05:32.920 was not as big of an. 0:05:32.920 --> 0:05:36.040 Upgrade, and they're. 0:05:35.520 --> 0:05:40.000 Down when there was so much pent up demand for 0:05:40.040 --> 0:05:44.320 this device. So clearly not a terrific situation here, but 0:05:45.480 --> 0:05:49.920 I do see some momentum shifting. The iPhone sixteen Pro 0:05:50.200 --> 0:05:52.680 is going to launch later this year. There are some 0:05:53.120 --> 0:05:56.760 cool new camera features that could excite that market. The 0:05:56.800 --> 0:05:58.960 other thing to note is that the Apple Vision Pro 0:05:59.160 --> 0:06:03.280 mixed reality. That's a pretty popular technology in China and 0:06:03.320 --> 0:06:06.080 in Asia in general, and I expect China to be 0:06:06.080 --> 0:06:08.080 one of the first markets to get that headset. 0:06:08.120 --> 0:06:09.359 So it's not all. 0:06:09.200 --> 0:06:11.240 Bad for Apple and China. There is going to be 0:06:11.320 --> 0:06:12.880 a little bit of a shift here, I think later 0:06:12.920 --> 0:06:13.360 in the year. 0:06:14.080 --> 0:06:17.760 I mean, thus far as data coming from center point counterpoint, 0:06:18.520 --> 0:06:21.680 it's their narrative, it's not Apples. What are we hearing 0:06:21.720 --> 0:06:23.960 from Apple to try and regain that narrative? You, of 0:06:23.960 --> 0:06:26.720 course pushed out a story yesterday about how they've been 0:06:26.800 --> 0:06:29.640 updating some of their MacBook airs at the moment, so 0:06:29.760 --> 0:06:32.800 clearly bringing in faster chips. But we need to hear 0:06:32.839 --> 0:06:35.360 a little bit more about artificial intelligence as well. Your 0:06:35.360 --> 0:06:37.440 amazing scoop last week about the fact that they're putting 0:06:37.480 --> 0:06:40.720 back on the car, putting their technology experts to work 0:06:40.720 --> 0:06:45.640 in AGI more focused and generative AI. Does that mean 0:06:45.680 --> 0:06:49.280 that we could start to see a refresh and exuberance 0:06:49.320 --> 0:06:50.200 around purchasing. 0:06:51.880 --> 0:06:53.680 Yeah, I mean the big question is if a lot 0:06:53.680 --> 0:06:57.320 of these new AI features are going to be available globally, right, 0:06:57.560 --> 0:07:00.560 it could be sensible that Apple first roles now in 0:07:00.640 --> 0:07:03.240 English speaking countries, right, and then they have a long 0:07:03.320 --> 0:07:07.440 roadmap ahead to expand the artificial intelligence features to China 0:07:07.480 --> 0:07:10.680 and some of the international regions. I'm not sure that 0:07:10.800 --> 0:07:14.200 AI is going to give a significant boost to their 0:07:14.240 --> 0:07:17.280 product sales. I think the AI would be better served 0:07:17.280 --> 0:07:19.960 in terms of new revenue for future products. What kind 0:07:20.000 --> 0:07:22.920 of new devices can you enable thanks to AI? Right, 0:07:23.040 --> 0:07:27.920 things like more advanced headsets, augmented reality glasses, AirPods with cameras, 0:07:28.000 --> 0:07:32.640 tabletop robotics devices and before was canceled the car of course, 0:07:33.040 --> 0:07:36.320 so certainly that's something to watch. Apple's not saying much 0:07:36.400 --> 0:07:40.360 when they last spoke, they seemed pretty you know, excited 0:07:40.360 --> 0:07:43.200 about what's going on in China. They were referencing Counterpoints 0:07:43.560 --> 0:07:47.560 previous report that indicated the iPhone is doing extremely well, 0:07:47.800 --> 0:07:50.560 and everyone who talked negatively about Apple and China was 0:07:50.600 --> 0:07:53.400 completely wrong. So this is a complete narrative shift. Now 0:07:53.440 --> 0:07:56.040 again the first thing you said, I think was really important. 0:07:56.080 --> 0:07:59.680 This is Counterpoints narrative. This is Counterpoints numbers. Now, some 0:08:00.000 --> 0:08:03.880 times these numbers are correct, sometimes they're completely incorrect. I 0:08:03.880 --> 0:08:07.200 would say, on average, they give a fair idea of 0:08:07.240 --> 0:08:10.280 what's going on. So it's possible the real situation is 0:08:10.320 --> 0:08:14.640 not as bad as Counterpoint is indicating today. But certainly 0:08:14.640 --> 0:08:17.880 there is some indicator from them at least that things 0:08:17.920 --> 0:08:20.400 are not as great as one would hope. If you 0:08:20.440 --> 0:08:21.240 are an Apple. 0:08:20.960 --> 0:08:24.480 Shareholder, certainly it's taken a big hit to market capitalization 0:08:24.600 --> 0:08:26.920 over the course of this year. Mark German as always 0:08:26.960 --> 0:08:29.520 so fantastic to run through all Apple with you. Meanwhile, 0:08:29.640 --> 0:08:31.760 let's just stay with China as a narrative right now, 0:08:31.800 --> 0:08:35.520 because US officials actually told chip maker AMD is artificial 0:08:35.520 --> 0:08:38.840 intelligence chip designed for the Chinese market, it's too powerful. 0:08:39.040 --> 0:08:41.600 They can't sell it without a license. From the Commerce Department. 0:08:42.000 --> 0:08:44.280 For more on that particular scoop as Blue Megs Mackenzie 0:08:44.320 --> 0:08:47.840 Hawkins and well, what's interesting is AMD hadn't really been 0:08:47.840 --> 0:08:50.000 discussing what they were making for China, but you got 0:08:50.000 --> 0:08:50.720 the inside. 0:08:50.440 --> 0:08:52.400 Track, that's right. 0:08:52.520 --> 0:08:55.080 So we've actually seen this story play out before with 0:08:55.160 --> 0:08:58.680 AMD's main American rival and Video, which publicly said we 0:08:58.720 --> 0:09:01.280 are trying to design an a processor for the Chinese 0:09:01.280 --> 0:09:04.680 market to align with US export controls after those initial 0:09:04.720 --> 0:09:07.040 curbs were put in place in October twenty twenty two, 0:09:07.720 --> 0:09:11.040 and then the US moved to tighten those restrictions about 0:09:11.040 --> 0:09:14.800 a year later October twenty three, that captured in Video's chip. 0:09:14.840 --> 0:09:17.359 The US said, you can't sell that to Chinese customers. 0:09:17.360 --> 0:09:19.480 It allows them to develop AI models that pose a 0:09:19.520 --> 0:09:23.439 security risk. And since then we've seen in Video release 0:09:23.559 --> 0:09:26.120 new processors for China that they say align with even 0:09:26.160 --> 0:09:29.439 the stricter restrictions, and also am D trying to get 0:09:29.480 --> 0:09:33.120 into this market as well. AMD debuted a new suite 0:09:33.160 --> 0:09:35.520 of AI chips in December called the Mi I three 0:09:35.559 --> 0:09:39.400 hundred series, and this China specific chip is a less 0:09:39.440 --> 0:09:42.360 powerful version of that broader lineup of products. 0:09:42.880 --> 0:09:45.880 Right, the important thing here is there are two potential 0:09:45.920 --> 0:09:48.840 lines of rules that AMD has to follow. There is 0:09:48.880 --> 0:09:52.240 a technological restriction, a sort of blanket rule that says 0:09:52.600 --> 0:09:55.880 you cannot offer anything in China di spec, and then 0:09:55.920 --> 0:09:59.000 there's the end user specific rule, which says you cannot 0:09:59.040 --> 0:10:02.040 sell to this company. Do we know which one AMD 0:10:02.200 --> 0:10:04.080 is caught by. 0:10:04.120 --> 0:10:07.000 It's not yet clear which Chinese customer was trying to 0:10:07.080 --> 0:10:10.080 buy AMD's chips. So basically the process that they went 0:10:10.160 --> 0:10:12.800 through is there's a set of chips that are just 0:10:12.960 --> 0:10:15.679 deemed too powerful no matter what. If you have chips 0:10:15.720 --> 0:10:17.680 at those specs, you need to apply for a US 0:10:17.720 --> 0:10:21.160 government license. Then there's a lower tier of chips, for 0:10:21.240 --> 0:10:23.640 which you have to notify the US government of your 0:10:23.679 --> 0:10:26.439 intent to sell those chips to a Chinese customer, and 0:10:26.480 --> 0:10:28.840 they let you know whether you need a license. So 0:10:28.920 --> 0:10:31.720 that's what happened to AMD. They designed a chip that 0:10:31.840 --> 0:10:36.200 fell below the highest threshold, the most strict cutoff, but 0:10:36.320 --> 0:10:39.400 the US said, actually, you're not allowed to get an 0:10:39.480 --> 0:10:42.880 exemption from the overall licensing regime and you are going 0:10:42.920 --> 0:10:44.880 to have to go through this onerous process. And now 0:10:44.920 --> 0:10:48.200 it remains to be seen whether AMD is actually trying 0:10:48.240 --> 0:10:53.440 to do that, or whether they'll pivot away from this strategy. 0:10:52.040 --> 0:10:54.520 An AMD down one point eight percent, that the entire 0:10:54.559 --> 0:10:57.200 sox is and other chip names too, Bloombergs Mackenzie Hawkins 0:10:57.240 --> 0:10:58.559 terrific reporting. 0:10:58.600 --> 0:10:58.960 Thank you. 0:10:59.000 --> 0:11:02.760 Meanwhile, I has pledged to harness the entire nation's resources 0:11:02.800 --> 0:11:07.920 to speed homegrown scientific breakthroughs, reaffirming its priority to become 0:11:08.000 --> 0:11:11.520 self reliant in spheres from AI to chip making, to 0:11:11.600 --> 0:11:13.720 rest technological supremacy from the US. 0:11:13.760 --> 0:11:15.040 At Day one of the. 0:11:15.080 --> 0:11:19.719 National People's Congress, Premier Lee Chang laid out the nation's priorities, 0:11:19.760 --> 0:11:24.520 which are still technological innovation and upgrading its industries, including 0:11:24.760 --> 0:11:25.800 new energy vehicles. 0:11:25.880 --> 0:11:27.559 Caroline, Well, let's. 0:11:27.280 --> 0:11:29.600 Go over to what's happening in the world of politics 0:11:29.679 --> 0:11:32.000 right now because it affects the world of technology. On 0:11:32.000 --> 0:11:34.040 this Super Tuesday, we're going to be discussing the impact 0:11:34.080 --> 0:11:38.040 of AI misinformation and what local election offices can be 0:11:38.080 --> 0:11:41.280 doing to prepare for that conversation coming up next. Meanwhile, 0:11:41.600 --> 0:11:44.240 check out what's happening with meta shares. We're off by 0:11:44.240 --> 0:11:46.600 one point eight percent. Yes, the rest of technology is 0:11:46.640 --> 0:11:49.080 off in sympathy today, but more broadly, we're looking at 0:11:49.080 --> 0:11:52.000 reports that showing meta services are having issues now. Down 0:11:52.040 --> 0:11:56.880 Detector reporting plenty of problems, whether it be across Facebook, Instagram, 0:11:56.920 --> 0:12:00.480 and Messenger at the moment. Ironically, on x the Rifle 0:12:00.520 --> 0:12:04.000 platform is where we heard from meta communications director Andy 0:12:04.000 --> 0:12:06.600 Stone saying they are aware of people having issues accessing 0:12:06.640 --> 0:12:09.520 its services and they're working on a fix. This is 0:12:09.520 --> 0:12:25.600 the Bloomberg Technology. Now, let's get into the latest from 0:12:25.600 --> 0:12:29.240 today's Super Tuesday primaries and caucus is happening across the country. 0:12:29.440 --> 0:12:32.320 Bloomberg's Kaylee Lines has been very busy in anticipation of 0:12:32.360 --> 0:12:34.920 this day and throughout it. Kaylee, what are we bracing for? 0:12:36.360 --> 0:12:38.920 Well, we're bracing for what could, effectively, Caroline be the 0:12:38.920 --> 0:12:41.600 start of the general election tonight, because the front runner 0:12:41.640 --> 0:12:44.640 in the Republican primary, Donald Trump, could very well sweep 0:12:44.679 --> 0:12:47.840 all fifteen of these states, which would get him not 0:12:48.000 --> 0:12:50.560 exactly at the very close to the twelve hundred and 0:12:50.559 --> 0:12:53.760 fifteen delegates he needs to secure the nomination. Of course, 0:12:53.800 --> 0:12:56.199 Nikki Hayley still is in the race. He has committed 0:12:56.200 --> 0:12:58.720 to staying in through the contest today, but it is 0:12:58.800 --> 0:13:02.000 unclear if her campaign last beyond today, should she not 0:13:02.120 --> 0:13:04.720 actually come out as the victor in any of these states. 0:13:04.720 --> 0:13:06.680 The states to watch for her could be the likes 0:13:06.880 --> 0:13:09.560 of Vermont, maybe even of Virginia, but if she can't 0:13:09.559 --> 0:13:11.440 win in those states is highly unlikely she will be 0:13:12.080 --> 0:13:14.200 victorious in any others. It's worth keeping in mind that 0:13:14.240 --> 0:13:17.439 Heley does have financing theoretically to continue her campaign as 0:13:17.440 --> 0:13:20.439 she continually pulls in millions of dollars from donors twelve 0:13:20.440 --> 0:13:22.520 million in the month of February. Her campaign says another 0:13:22.600 --> 0:13:25.240 one million so far in March. But mathematically it just 0:13:25.320 --> 0:13:27.480 might not be possible for her to secure the nomination 0:13:27.640 --> 0:13:29.640 after tonight, which means we could be looking down the 0:13:29.679 --> 0:13:33.400 rematch tunnel here of Trump versus Joe Biden, who also 0:13:33.520 --> 0:13:35.520 is highly likely to come out on top on all 0:13:35.520 --> 0:13:37.360 of the Democratic primary states today. 0:13:38.280 --> 0:13:41.080 Kaylee, I'm looking forward to joining you in Bloomberg's Joe 0:13:41.160 --> 0:13:44.440 Matthew this evening with our special show and coverage. 0:13:44.480 --> 0:13:45.320 When you look at. 0:13:45.200 --> 0:13:48.360 California, right, Trump and Biden basically say, I just want 0:13:48.400 --> 0:13:50.080 to get it out the way, get it done, even 0:13:50.120 --> 0:13:53.559 though it's the most populous state. What's probably more interesting 0:13:53.960 --> 0:13:56.439 is some of the dollars that originate from the state 0:13:56.960 --> 0:13:58.880 and some of the initiatives that they're backing. 0:14:00.360 --> 0:14:03.280 Yeah, absolutely in the down ballot races. Specifically, if you 0:14:03.320 --> 0:14:05.840 look at the Senate primary, for example, this is to 0:14:05.880 --> 0:14:08.920 replace the late Senator Diane Feinstein. In California, you have 0:14:09.080 --> 0:14:12.120 three Democratic members of the House, Adam Schiff, Katie Porter, 0:14:12.360 --> 0:14:15.640 and Barbara Lee, who are competing against one Republican Steve Garvey, 0:14:15.679 --> 0:14:18.600 who you may know as a former Los Angeles Dodgers player. 0:14:18.600 --> 0:14:21.240 But California has a jungle primary, which means whichever to 0:14:21.760 --> 0:14:24.880 get the highest number of votes, be that Democratic or Republican, 0:14:24.880 --> 0:14:27.080 they are the ones that will advance to the general 0:14:27.120 --> 0:14:30.840 election in November. And crypto packs specifically have been throwing 0:14:30.840 --> 0:14:33.440 a lot of money at this race, specifically throwing money 0:14:33.680 --> 0:14:38.320 against Congressoman Katie Porter, spending about ten million dollars against her, 0:14:38.360 --> 0:14:40.880 which has actually helped Adam Schiff, who does have some 0:14:40.920 --> 0:14:44.640 more crypto friendly language on his campaign website. So that's 0:14:44.640 --> 0:14:46.000 one of the races to watch, and I would just 0:14:46.000 --> 0:14:48.200 note when you're thinking crypto, they're spending money in other 0:14:48.240 --> 0:14:51.480 states as well, like Alabama and North Carolina. So certainly 0:14:51.560 --> 0:14:54.480 the industry is trying to advance its objectives through dollars 0:14:54.680 --> 0:14:56.080 in some of these down ballot. 0:14:55.880 --> 0:14:58.920 Races this evening. All right, bloom As Klines, I'll see 0:14:58.920 --> 0:15:01.680 you in a few hours for off Super Tuesday coverage. 0:15:01.800 --> 0:15:03.800 Thank you very much. Let's keep a conversation going. 0:15:04.080 --> 0:15:08.000 There's something to discuss around the intersection of artificial intelligence 0:15:08.080 --> 0:15:11.560 and misinformation in this election cycle. Here's what some of 0:15:11.600 --> 0:15:14.760 our recent guests on bloombag TV have had to say about. 0:15:14.480 --> 0:15:17.800 That misinformation with artificial intelligence. 0:15:17.880 --> 0:15:20.800 I think that could be another factor that impacts what's 0:15:20.800 --> 0:15:22.280 going on around the election. 0:15:22.400 --> 0:15:27.400 I don't think independent center right Republicans or Democrats really 0:15:27.400 --> 0:15:30.760 have any idea about how effective AI can be if 0:15:30.800 --> 0:15:33.080 it's in the hands those specific individuals that have no 0:15:33.160 --> 0:15:33.880 moral boundaries. 0:15:33.880 --> 0:15:35.760 So tho's sort of the big things. 0:15:35.840 --> 0:15:37.640 You know, if somebody does that deep fake, whether it's 0:15:37.720 --> 0:15:39.760 Joe Biden or Trump, and you know, we're going to 0:15:39.800 --> 0:15:41.320 be able to find that you may not even need 0:15:41.360 --> 0:15:41.960 an algorithm. 0:15:42.120 --> 0:15:44.280 So what we're seeing also is that the foreign disinformation 0:15:44.400 --> 0:15:49.200 campaigns could be very effective with AI. With deepfakes specifically. 0:15:48.640 --> 0:15:51.360 There's much more subtle manipulation that I think we need 0:15:51.400 --> 0:15:51.960 to watch for. 0:15:54.680 --> 0:15:57.320 Let's bring in Marcy Andino for her take. She's the 0:15:57.360 --> 0:16:02.520 senior director of the Election infrastruct Information Sharing an analysis 0:16:02.520 --> 0:16:07.400 center which supports state, local and territorial election offices. You 0:16:07.520 --> 0:16:11.800 heard that the diverse range of opinion. It is super Tuesday, 0:16:12.280 --> 0:16:15.760 social media is down. What do you think will happen 0:16:15.800 --> 0:16:18.960 tonight in the context of AI and misinformation? 0:16:21.720 --> 0:16:23.560 Thank you so much for that question, and it's a 0:16:23.600 --> 0:16:27.440 pleasure to be here with you this morning. AI is 0:16:27.520 --> 0:16:30.640 certainly a new topic that we're talking about. We're talking 0:16:30.920 --> 0:16:36.080 and tracking five cybersecurity Brett's as we move into the 0:16:36.160 --> 0:16:39.800 general election, and AI is the new kid on the block, 0:16:39.840 --> 0:16:43.360 if you will. We're not seeing a lot of AI 0:16:43.560 --> 0:16:47.960 activity right now, but it certainly has the potential to 0:16:48.200 --> 0:16:54.880 increase misinformation campaigns. It will amplify or magnify the risk 0:16:55.040 --> 0:16:57.520 that already exists out there. 0:16:58.120 --> 0:17:00.920 What your role does at the moment is you're offering tools, 0:17:01.080 --> 0:17:03.600 no cost tools, it might be said, training to those 0:17:03.600 --> 0:17:05.960 who are out there in the field trying to ensure 0:17:06.080 --> 0:17:08.280 that this isn't spreading and that their elections have been 0:17:08.320 --> 0:17:12.560 run fairly. But also you're providing sort of effective remediation 0:17:12.720 --> 0:17:16.240 if ever there are incidents, talk us through. What you'll 0:17:16.280 --> 0:17:19.480 go to is in a response to any sort of 0:17:19.720 --> 0:17:23.360 sudden sweeping of a misinformation out the break that might 0:17:23.520 --> 0:17:25.160 or might not occur as people had to polls. 0:17:26.840 --> 0:17:29.919 Well, we've been talking with election officials over the last 0:17:30.000 --> 0:17:35.040 year about the possibility of seeing generative AI used to 0:17:35.160 --> 0:17:40.080 disrupt elections, and we're reminding election officials that they need 0:17:40.119 --> 0:17:44.320 to collaborate with us and share information so we can 0:17:44.359 --> 0:17:47.919 pass that information on to other election officials so they 0:17:48.000 --> 0:17:52.680 might know what's coming in their states. We also remind 0:17:52.720 --> 0:17:55.760 them probably the most powerful thing they can do is 0:17:55.800 --> 0:18:01.760 to educate voters, citizens, candidates, and even their local media. 0:18:02.320 --> 0:18:05.639 So when people see something that they think might not 0:18:05.760 --> 0:18:09.040 be exactly right, they know where to go to get 0:18:09.080 --> 0:18:13.560 accurate information, and that is with the state or local 0:18:13.920 --> 0:18:18.200 election officials. So it's very important that they establish themselves 0:18:18.640 --> 0:18:23.280 as the trusted source of information, and that even goes 0:18:23.320 --> 0:18:30.080 for training their staff. In election offices, they work long hours, 0:18:30.240 --> 0:18:33.480 they get very tired, so they're more apt to click 0:18:33.520 --> 0:18:38.320 on something, and they bring in a lot of seasonal workers. 0:18:38.320 --> 0:18:41.160 So those seasonal workers may or may not have had 0:18:41.280 --> 0:18:45.160 any training, so it's important to make sure they're trained 0:18:45.200 --> 0:18:48.720 and ready to go as well, and of course, using 0:18:48.840 --> 0:18:56.200 good cyber hygiene passwords strong passwords, turning on multi factor 0:18:56.240 --> 0:19:01.760 authentication on every application. They can using our no cost 0:19:01.960 --> 0:19:06.320 tools to protect their network, their critical networks. 0:19:06.960 --> 0:19:07.280 MARSI. 0:19:07.680 --> 0:19:10.000 I think cyber hygiens a new one for us on 0:19:10.040 --> 0:19:14.960 this show. Is there any proof that we are better 0:19:15.040 --> 0:19:20.399 prepared for this year's election than we were in twenty twenty. 0:19:21.080 --> 0:19:24.240 Well, the EII sack just turned six years old, and 0:19:24.400 --> 0:19:27.800 for the last six years we've been working with election 0:19:27.880 --> 0:19:32.080 officials across the country and in the territories to raise 0:19:32.160 --> 0:19:40.120 their cybersecurity posture. We've deployed lots of solutions, cybersecurity solutions 0:19:40.560 --> 0:19:45.359 that would harden their defenses, and we've also provided a 0:19:45.359 --> 0:19:48.760 lot of training, and we're talking to election officials in 0:19:48.880 --> 0:19:53.080 terms they understand. We're former election officials in many cases, 0:19:53.880 --> 0:19:56.679 so we're breaking down those barriers and making sure that 0:19:56.760 --> 0:20:02.520 they understand that cybersecurity is everybody's responsibility and that they 0:20:02.560 --> 0:20:05.560 need to take action. So I believe, yes, we are 0:20:05.560 --> 0:20:11.280 better prepared. But cybersecurity is a long term game. It 0:20:11.400 --> 0:20:15.679 is not a one and done. It's constantly changing, and 0:20:15.760 --> 0:20:20.800 as you started the conversation with Generative AI, that's the 0:20:20.920 --> 0:20:24.960 new thing that we are trying to build defenses around 0:20:25.040 --> 0:20:28.480 and prepare elections, to deal with election officials, to deal 0:20:28.520 --> 0:20:31.800 with especially as we move into the general election. 0:20:32.359 --> 0:20:34.640 MASSI great to have some time with you on head 0:20:34.680 --> 0:20:38.040 of this super Tuesday Mussi Andina. It's a UNI director 0:20:38.080 --> 0:20:40.800 for the election of the Structure Information Sharing and Analysis Center. 0:20:41.400 --> 0:20:43.200 Great expertise coming there. I meanwhile, coming up for the 0:20:43.240 --> 0:20:45.800 first time in more than nine months, a mosque is 0:20:45.800 --> 0:20:49.119 no longer the world's richest person. Bezos, He's back. 0:20:49.520 --> 0:21:09.560 We'll have more for you. This is new by Technology. 0:21:02.200 --> 0:21:05.000 Time now for talking tech First. Sub Ali Baba spearheading 0:21:05.000 --> 0:21:07.919 its second major deal in AI this year, needing a 0:21:07.920 --> 0:21:10.320 financing round of at least six roundred million dollars for 0:21:10.440 --> 0:21:13.720 Chinese AI startup Minimax, as the e commerce pioneered actually 0:21:13.720 --> 0:21:15.840 deploying its own capital and pursuit of growth. Now the 0:21:15.920 --> 0:21:18.360 two year old firm that it's backed has secured from 0:21:18.760 --> 0:21:21.560 not only Alibarb but other investors that bring its now 0:21:21.640 --> 0:21:23.680 valuation to two and a half billion. 0:21:23.400 --> 0:21:24.840 Dollars, according to sources. 0:21:25.320 --> 0:21:29.840