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Speaker 1: News when you wanted with Bloomberg News. Now I'm Doug Krisner.

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Speaker 1: Microsoft is in talks to acquire the US operations of TikTok.

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Speaker 1: That's according to President Trump. You might recall back in

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Speaker 1: twenty twenty, Microsoft was in the running to acquire the

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Speaker 1: US operations of TikTok. That's when Trump first pressured the

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Speaker 1: app's owner, Byte Dance, to either sell in the US

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Speaker 1: or face a ban. Well, now Trump has changed his view.

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Speaker 1: He's no longer favoring a ban, and indeed he is

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Speaker 1: encouraging more bidders to get involved. Earlier we reported other

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Speaker 1: bidders include the AI startup Perplexity and billionaire investor Frank McCort.

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Speaker 1: Wall Street was rattled today by a Chinese artificial intelligence startup.

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Speaker 1: The company is deep Seek, and its AI model, known

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Speaker 1: as R one, appears to rival the performance of US

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Speaker 1: products like Chat GPT at a fraction of the price.

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Speaker 1: Now that could make high valuations of some US AI

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Speaker 1: related companies tough to justify. The eye of the storm

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Speaker 1: today was in IT shares tumbled seventeen percent, thereby erasing

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Speaker 1: five hundred and eighty nine billion dollars from in Vidia's

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Speaker 1: market cap. We got reaction from Jordan Klein at Misuhu America's.

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Speaker 2: It's a beginning of probably a consolidation phase and some

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Speaker 2: profit taking for sure, But I don't think it's the

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Speaker 2: beginning of the end of the AI trade. I just

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Speaker 2: think we're up a lot after two massive years of

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Speaker 2: out performance in both tech and these AI winners, and

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Speaker 2: it's really only one month into the year. So I

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Speaker 2: think the size and the scale of the pullback is

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Speaker 2: that who wants to be a hero if your institutional

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Speaker 2: money manager or a hedge fund, you know, and buy

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Speaker 2: the dip on the first day, I mean catch the

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Speaker 2: you know, proverbial falling knife, so to speak.

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Speaker 1: Now those stock losses come ahead of some big tech

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Speaker 1: earnings happening this week. We got to look ahead from

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Speaker 1: Adrian Zurker of UBS Global Wealth Management.

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Speaker 3: I think the easy beta trade off the AI is

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Speaker 3: behind us. You probably have to do a bit more

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Speaker 3: at digging. You have to do research which these companies

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Speaker 3: have to deliver on earnings. They have to confirm that

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Speaker 3: they have a plan at least to monetize that, and

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Speaker 3: otherwise we will see that the investors which are really

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Speaker 3: piled into these stocks will actually retreat and we will

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Speaker 3: see a setback.

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Speaker 1: That's Adrian Zerker of UBS Global Wealth Management speaking there now.

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Speaker 1: Demand for R one was overwhelming over the weekend after

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Speaker 1: deep Seek said the chatbot can rival chat GPT, but

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Speaker 1: its biggest selling point the model was developed at a

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Speaker 1: fraction of the cost of competing products. Michelle Geida is

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Speaker 1: CEO of the Kroc Institute for Tech Diplomacy at Purdue.

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Speaker 4: It's a question of how much more can we innovate,

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Speaker 4: not how much more can we regulate. The superpower of

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Speaker 4: the United States is innovation and enterprise. We're not going

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Speaker 4: to regulate our way to becoming the global capital of

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Speaker 4: artificial intelligence.

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Speaker 1: That is Michelle Geida, CEO at the Kroc Institute for

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Speaker 1: Tech Diplomacy at Purdue University. Billionaire Hedge fund manager Scott

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Speaker 1: Bessant has won con information as US Treasury Secretary. The

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Speaker 1: Senate vote was sixty eight to twenty nine.

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Speaker 2: Under the previous order, the motions to reconsider is considered

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Speaker 2: made and laid upon the table, and the President will

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Speaker 2: be immediately notified to the Senate's action.

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Speaker 1: As a result, Besant will be in charge of implementing

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Speaker 1: President Trump's economic plan. He has defended tax cuts and

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Speaker 1: tariff proposals, while urging efforts to secure supply chains and

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Speaker 1: maintaining the dollar's global status. The US Department of Justice

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Speaker 1: has fired over a dozen officials who worked on investigations

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Speaker 1: into Donald Trump's actions after the twenty twenty election. The

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Speaker 1: firings were reportedly due to concerns that these officials could

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Speaker 1: not be trusted to implement the president's agenda. Now. The

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Speaker 1: move was part of a broader effort by the Trump

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Speaker 1: administration to reassign or remove officials seen as disloyal, and

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Speaker 1: it comes after Trump issued an executive order to root

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Speaker 1: out perceived political enemies. Shares and Sofi Technologies were down

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Speaker 1: ten percent today after issuing a profit forecast for the

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Speaker 1: current quarter that was below analyst estimates. However, the company

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Speaker 1: did report strong earnings for the latest quarter. Sofi offers

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Speaker 1: a financial services and tech platform. Its CEO is Anthony Noto.

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Speaker 5: Prior to twenty twenty four, we had committed to a

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Speaker 5: balanced approach to growth and profitability where we would reinvest

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Speaker 5: seventy cents of every incremental revenue dollar, and we call

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Speaker 5: that thirty percent incremental Ebadam margins. So we took our

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Speaker 5: revenue forecast for twenty five up. We're in the best

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Speaker 5: position we've been since I've been here, at so far

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Speaker 5: for the last seven years. We're calling for twenty five

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Speaker 5: percent revenue growth, strong margins at twenty six percent.

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Speaker 1: That is so FI CEO Anthony Notos speaking there, and

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Speaker 1: that is news when you wanted with Bloomberg News. Now,

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Speaker 1: I'm Doug Krisner and this is Bloomberg New