WEBVTT - Appeals Court Allows Possible TikTok Ban 0:00:00.080 --> 0:00:09.840 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.440 --> 0:00:12.760 From Mahart where Innovation, money and power Collie in Silicon 0:00:12.840 --> 0:00:13.720 Vallet NBN. 0:00:14.080 --> 0:00:18.600 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:32.479 --> 0:00:34.800 Live from New York. This is Bloombag Technology. Coming up. 0:00:35.159 --> 0:00:38.120 TikTok still faces an austing in the United States after 0:00:38.120 --> 0:00:41.800 a DC appeals caught upholds the divest or ban law. 0:00:42.360 --> 0:00:45.360 Plus more VC voices in the new administration. As Donald 0:00:45.400 --> 0:00:48.880 Trump selects venture capitalist David Sachs to serve as his 0:00:49.200 --> 0:00:52.680 AI and cryptos are and Hpe, which is a record 0:00:52.760 --> 0:00:55.120 high after posting earnings, we talk AI servers with the 0:00:55.120 --> 0:00:58.480 company's CEO. First, we check in on the markets and 0:00:58.560 --> 0:01:01.720 other record highs than just Hpe. We have the Nazak 0:01:01.760 --> 0:01:04.000 one hundred and a new record up seven tens of percent. 0:01:04.040 --> 0:01:06.800 The macro picture being that of a resilient jobs market 0:01:07.240 --> 0:01:10.559 and even though there's sort some infrationery pressure, the market 0:01:10.720 --> 0:01:13.119 almost pricing in some sort of rate cup for later 0:01:13.160 --> 0:01:14.240 this month coming from the Fed. 0:01:14.600 --> 0:01:16.560 So we see stocks move high. 0:01:16.600 --> 0:01:19.360 The SMP at a new record two fifty seventh that 0:01:19.400 --> 0:01:22.120 we'd see have almost thirty percent year to date in 0:01:22.160 --> 0:01:25.400 terms of points contributors. You're looking at Broadcom doing well 0:01:25.440 --> 0:01:27.600 also met her as well, which we'll dig into in 0:01:27.640 --> 0:01:31.679 a moment. And that's all because of TikTok's Chinese parent company, 0:01:31.720 --> 0:01:34.240 Byte Dance, still facing that ban here in the United 0:01:34.280 --> 0:01:37.280 States if it doesn't meet the January nineteenth deadline to 0:01:37.400 --> 0:01:41.280 divest TikTok. This after a federal appeals court just came 0:01:41.319 --> 0:01:44.280 out with its decision to uphold the ban. Blouembgs Alexandra 0:01:44.360 --> 0:01:46.600 Levine joins us now, who covers all things social, all 0:01:46.640 --> 0:01:49.600 things TikTok, and you are surprised, ultimately by this ruling. 0:01:50.200 --> 0:01:53.280 This is what we expected, but it still is very 0:01:53.480 --> 0:01:56.120 surprising in the sense that we've never seen this happen 0:01:56.160 --> 0:01:58.400 in the United States before. So if this band comes 0:01:58.400 --> 0:02:01.080 to pass late in January, it will be the first 0:02:01.120 --> 0:02:03.280 time that any foreign owned social media app has ever 0:02:03.320 --> 0:02:05.240 been banned in this country. And again, it's not just 0:02:05.280 --> 0:02:07.480 any social media app. This is a social media app 0:02:07.680 --> 0:02:09.760 used by more than half the American population. 0:02:10.000 --> 0:02:13.000 I'm backed by some very powerful people potentially close to 0:02:13.080 --> 0:02:17.880 the next administration, benure capitalists, pe funds. But what's interesting 0:02:17.960 --> 0:02:21.160 is what's the effect this is happening on the company itself. 0:02:21.800 --> 0:02:24.720 Yeah, inside the company, I think the sentiment has been fascinating. 0:02:24.720 --> 0:02:25.920 It's sort of been twofold. 0:02:26.080 --> 0:02:28.400 I think there's a lot of folks inside the company 0:02:28.440 --> 0:02:31.840 who had been more actually scared the first time that 0:02:31.880 --> 0:02:35.280 this happened with Trump's first administration, when Trump was originally 0:02:35.320 --> 0:02:36.840 the one who tried to ban it back in twenty 0:02:36.880 --> 0:02:40.200 twenty unsuccessfully, So that then when all of this has 0:02:40.240 --> 0:02:42.680 been transpiring this year, you had a lot of people 0:02:42.680 --> 0:02:44.679 who were like, we've seen this movie before. This is 0:02:44.760 --> 0:02:46.560 sort of boy who cried wealth. They didn't actually believe 0:02:46.600 --> 0:02:48.520 it would come to this, But I think the court 0:02:48.680 --> 0:02:52.240 upholding the legitimacy of the law today could well change 0:02:52.240 --> 0:02:53.040 people's tune. 0:02:53.400 --> 0:02:56.120 Just for our audience, we have a little live far 0:02:56.240 --> 0:02:59.320 drill going on here in Lexington Avenue, New York, So 0:02:59.400 --> 0:03:03.000 bear with us when we have some of these particular 0:03:03.520 --> 0:03:06.560 announcements coming through the camera. At Alexander Levine, we thank you 0:03:06.600 --> 0:03:08.880 so much on all things TikTok. Let's go to Blue 0:03:08.919 --> 0:03:12.160 Meg Intelligence analyst Matthew Schunhelm for more. Who I'm pleased 0:03:12.160 --> 0:03:13.840 to say, isn't that in New York so wouldn't get 0:03:13.880 --> 0:03:16.839 the sort of interference from a noise perspective, Matthew. From 0:03:16.840 --> 0:03:20.880 the legal perspective here, what was the ruling from the judges? Ultimately, 0:03:20.919 --> 0:03:24.680 they think that national security out trumps upon the pun. 0:03:24.960 --> 0:03:27.400 What's happening from a freedom of speech perspective. 0:03:28.360 --> 0:03:32.320 That's exactly right, Carolina. Looking quickly at the sixty five 0:03:32.400 --> 0:03:36.960 page opinion, this looks like a sweeping loss for TikTok, 0:03:37.640 --> 0:03:41.600 where the court completely rejected its its First Amendment argument 0:03:41.720 --> 0:03:47.200 and said that national security concerns trump all of those complaints. 0:03:47.960 --> 0:03:52.080 The court said that this fails both intermediate scrutiny and 0:03:52.240 --> 0:03:55.400 even strict scrutiny, which almost never works. 0:03:55.440 --> 0:03:56.760 But the court said, look, the. 0:03:56.720 --> 0:04:02.440 Government's interest in national security trumps the First Amendment concerns 0:04:02.520 --> 0:04:05.160 no matter what the test is. This is a tough 0:04:05.240 --> 0:04:07.040 loss for TikTok, and I think it's going to be 0:04:07.160 --> 0:04:09.240 difficult for TikTok to overturn it. 0:04:10.040 --> 0:04:12.440 To that point, you had what a seventy percent chance 0:04:12.440 --> 0:04:16.680 that TikTok would lose on this particular DC court. They're 0:04:16.720 --> 0:04:19.200 only inning here now is to go to the Supreme Court. 0:04:19.520 --> 0:04:21.520 What are your probabilities on that or is it too 0:04:21.600 --> 0:04:23.160 early to tell? 0:04:23.440 --> 0:04:25.839 No, I think that is going to be the option. 0:04:25.960 --> 0:04:28.599 In theory, they could ask for rehearing at this Appeals Court, 0:04:28.640 --> 0:04:31.599 but this decision leaves little hope of that. So I 0:04:31.640 --> 0:04:34.840 think you're right that the next move is an emergency 0:04:34.920 --> 0:04:39.280 petition to the Supreme Court to say justices hit pause 0:04:39.360 --> 0:04:42.200 on this January nineteenth date. This is an important First 0:04:42.200 --> 0:04:45.640 Amendment case. As Alexandra said, this is sort of novel 0:04:45.839 --> 0:04:50.000 in American law, and so trying to entice the Justices 0:04:50.040 --> 0:04:52.360 to at least look at it before the date take 0:04:52.920 --> 0:04:55.920 comes up. It's the thing is, it's difficult to do 0:04:56.000 --> 0:04:59.159 that though. It takes five justices to vote in support 0:04:59.240 --> 0:05:03.039 of that, and with this sweeping decision, two of the 0:05:03.040 --> 0:05:06.480 three judges who wrote this decision are Republican appointed. One 0:05:06.560 --> 0:05:09.839 of them's President Trump appointed, and this Supreme Court tends 0:05:09.880 --> 0:05:12.800 to agree with with those judges. I think there's a 0:05:12.839 --> 0:05:15.520 real possibility the Supreme Court looks at this and says, 0:05:15.600 --> 0:05:17.560 you know what, the d C. Circuit got it right. 0:05:18.040 --> 0:05:20.040 We might not even need to take this up. So 0:05:20.240 --> 0:05:22.880 there's a chance of that that they hit pause and 0:05:23.160 --> 0:05:25.159 the Supreme Court has to rule on it. But there's 0:05:25.200 --> 0:05:28.440 also I think a better chance the Supreme Court says no, 0:05:29.000 --> 0:05:31.159 they got it right. This case is over let the 0:05:31.200 --> 0:05:32.480 band take effect. 0:05:32.800 --> 0:05:36.920 What then, legally speaking, does TikTok do? What does Bite 0:05:37.000 --> 0:05:37.360 Dance do? 0:05:39.000 --> 0:05:39.240 Yes? 0:05:39.640 --> 0:05:42.400 So, so the question then is will it Will it 0:05:42.560 --> 0:05:45.360 do a divestiture? You know, the law gives it a 0:05:45.400 --> 0:05:50.080 path around an effective van by by by by selling 0:05:50.120 --> 0:05:53.680 the service to someone who's not located in China. The 0:05:53.760 --> 0:05:56.599 problem is that China has said it won't approve a 0:05:56.760 --> 0:06:01.080 sale with of the algorithm, So so TikTok's in a 0:06:01.080 --> 0:06:04.120 bit of a tough spot in that sense. The other 0:06:04.240 --> 0:06:07.280 big question is what will President Trump do with this? 0:06:07.720 --> 0:06:12.200 Will he enforce this law? The enforcement mechanism is the 0:06:12.200 --> 0:06:15.479 Department of Justice here, and President Trump in theory could 0:06:15.520 --> 0:06:18.800 direct his Department of Justice say don't worry about enforcing 0:06:18.839 --> 0:06:22.200 that one. That would be highly unusual and the companies 0:06:22.279 --> 0:06:25.360 that host TikTok would be taking enormous risk. He wouldn't 0:06:25.400 --> 0:06:28.080 change his mind, But it's at least a possibility. 0:06:28.839 --> 0:06:31.240 We don't rule out anything, of course, for the future, 0:06:31.240 --> 0:06:33.719 and I'm i am interested as to whether you know 0:06:33.760 --> 0:06:37.880 from behind the scenes ultimately what it could look like 0:06:37.920 --> 0:06:42.040 if they did divest and legally speaking, how that might 0:06:42.200 --> 0:06:43.720 have to ultimately. 0:06:43.760 --> 0:06:47.480 Look, yeah, I mean there's a big question. I think 0:06:47.520 --> 0:06:51.680 the biggest question around the divestiture is whether TikTok would 0:06:52.160 --> 0:06:55.520 or potential buyers would look at a transaction that doesn't 0:06:55.560 --> 0:06:59.480 involve the algorithm. And if China won't approve a sale 0:06:59.480 --> 0:07:02.360 of the Algori Rhythm, maybe you're looking at selling you 0:07:02.760 --> 0:07:06.159 just the users and the platform, but without the secret 0:07:06.200 --> 0:07:09.800 sauce that makes it work and so well, I think 0:07:10.040 --> 0:07:14.000 you could see the company exploring those sorts of alternatives 0:07:14.840 --> 0:07:16.200 in the near term. 0:07:17.120 --> 0:07:20.560 We will wait to see whether indeed it does get 0:07:21.000 --> 0:07:22.560 pushed onto the Supreme Court. 0:07:22.560 --> 0:07:24.360 But can you give us a feeling of timing him? 0:07:24.400 --> 0:07:27.240 I think January the nineteenth feels incredibly close. Now it 0:07:27.320 --> 0:07:31.800 is one day before the new administration is sworn in. 0:07:31.960 --> 0:07:33.440 Here we go with the fire alarms again. 0:07:33.640 --> 0:07:35.360 But what are you thinking in terms of just an 0:07:35.360 --> 0:07:38.800 extension past January nineteenth exactly? 0:07:38.840 --> 0:07:42.880 So, what I expect we'll see here in maybe today, 0:07:42.920 --> 0:07:45.880 maybe in a matter of days, is this emergency petition 0:07:45.960 --> 0:07:49.720 to the Supreme Court asking the justices to hit pause 0:07:49.920 --> 0:07:53.400 on that January nineteenth date. And I think the Supreme 0:07:53.440 --> 0:07:56.840 Court will take that petition. It will ask for briefs 0:07:56.840 --> 0:08:00.720 on that leading into January, and then the the Supreme 0:08:00.760 --> 0:08:04.080 Court is either going to say yes or no, probably 0:08:04.600 --> 0:08:08.559 in mid January, about whether it will grant this case, 0:08:08.680 --> 0:08:11.960 take the case and hit pause on that January nineteenth date. 0:08:12.040 --> 0:08:15.360 So that's where the legal action is likely to be 0:08:15.960 --> 0:08:19.840 in this pushing the justices to hit pause on that 0:08:19.920 --> 0:08:23.560 January nineteenth date. And as I said, I kind of 0:08:23.560 --> 0:08:26.240 think that the justices might say, no, we don't need 0:08:26.280 --> 0:08:28.920 to step in here. Let's let the law take effects. 0:08:29.520 --> 0:08:32.040 The DC Circuit got it right, and then it's over 0:08:32.080 --> 0:08:36.040 to Trump and then your administration. Matthew Shettenham fascinating you 0:08:36.120 --> 0:08:38.800 called it right this time. We'll check in with you later. Meanwhile, 0:08:39.000 --> 0:08:42.720 here's another Trump pick, David Sachs as White House, AI 0:08:42.840 --> 0:08:45.199 and cryptos are Trump posting on truth Social that the 0:08:45.280 --> 0:08:47.959 venture capitalist will quote guide policy for the administration in 0:08:48.080 --> 0:08:52.400 artificial intelligence and cryptocurrency. Two areas critical to the future 0:08:52.400 --> 0:08:56.160 of American competitiveness. Romost Katie Ruff helps cover all things 0:08:56.240 --> 0:09:00.280 venture and once again we have another venture capitalist. Then 0:09:00.559 --> 0:09:04.080 of course we have who's the deputy the Vice president 0:09:04.200 --> 0:09:05.640 elect as well being one. 0:09:06.120 --> 0:09:09.240 David Sachs has been close to Trump. Of late. Can 0:09:09.240 --> 0:09:11.920 you just tell us how we got here, sir? 0:09:11.960 --> 0:09:16.120 He was a big fundraiser, you know, for the presidential campaign, 0:09:16.160 --> 0:09:20.400 and he's also quite close to Daily Vance. The vice 0:09:20.440 --> 0:09:25.640 president elect, David Sachs was hosting fundraisers and also getting 0:09:26.240 --> 0:09:29.720 other Silicon Valley supporters to come on board and support Trump. 0:09:29.760 --> 0:09:32.920 So it's not surprising that there's some sort of role 0:09:33.080 --> 0:09:34.439 or partnership here. 0:09:35.040 --> 0:09:39.320 And indeed not a full at the seat role in 0:09:39.400 --> 0:09:42.640 politics that means he has to step away from Craft ventures. 0:09:42.640 --> 0:09:45.079 We know that he has sort of ultimately focused there 0:09:45.080 --> 0:09:48.240 because he's got a key man risk. His venture capital 0:09:48.320 --> 0:09:51.040 history is extraordinary. He's been in the angel rounds of 0:09:51.160 --> 0:09:54.560 Facebook now Meta, in Pan and Teer in some of 0:09:54.559 --> 0:09:56.959 the most successful exits that we've seen coming out of 0:09:57.000 --> 0:10:00.560 Silicon Valley. He built his own company that was exited Microsoft, 0:10:00.559 --> 0:10:03.120 earning him one point two billion dollars, well earning at 0:10:03.200 --> 0:10:05.640 least the sale price of one point two billion dollars. 0:10:06.280 --> 0:10:10.120 How intimately is he interweaved within AI and crypto because 0:10:10.120 --> 0:10:12.880 he has Bitgo bit Wise Lightning Labs for example, within 0:10:12.920 --> 0:10:13.599 his portfolio. 0:10:14.600 --> 0:10:17.280 Sure, there's already questions where people are asking does he 0:10:17.320 --> 0:10:20.120 have a conflict of interest here, but given that this 0:10:20.160 --> 0:10:23.440 is a less formal role, it's unclear if there's any 0:10:23.520 --> 0:10:27.199 roadblocks there. He's you know, certainly, you know, very much 0:10:27.240 --> 0:10:29.559 a part of the ecosystem. He has a popular all 0:10:29.640 --> 0:10:33.160 in podcast that many people in Silicon Valley and beyond 0:10:33.240 --> 0:10:37.320 listen to, where he airs controversial opinions. But I would 0:10:37.600 --> 0:10:41.079 see this as a sign of deregulation. He is definitely 0:10:41.240 --> 0:10:44.760 very tech friendly, you know, with crypto and AI. He 0:10:44.880 --> 0:10:47.880 is going to want to move to make moves to 0:10:48.040 --> 0:10:52.600 prevent anything that is obstructing the growth of these technology companies. 0:10:53.000 --> 0:11:03.080 kJ Ruth, we thank you, HPE. 0:11:03.320 --> 0:11:06.600 We're wanting strong fourth quarter results and we're seeing shares 0:11:06.640 --> 0:11:09.240 at a new record high. It's all around the sales 0:11:09.520 --> 0:11:12.240 strength that we're seeing for service to power AI workloads. 0:11:12.760 --> 0:11:16.120 How resilient is that, Let's ask Antonio and airing HPE CEO. 0:11:16.320 --> 0:11:19.480 So what's interesting about the AI server business was that 0:11:19.559 --> 0:11:23.360 it's still growing fast. But is it cool sequentially, are 0:11:23.360 --> 0:11:26.080 you feeling confident about the purchases here? 0:11:27.280 --> 0:11:30.080 Well, good morning, Carol, and thank you for having me today. 0:11:30.520 --> 0:11:33.240 We have an exceptional quarter and obviously one of the 0:11:33.280 --> 0:11:37.200 flagship elements of that quarter was AI, but I have 0:11:37.280 --> 0:11:39.600 to say it was more than AI. It was also 0:11:39.640 --> 0:11:44.719 a hybrid cloud business performing exceptionally well, and the sort 0:11:44.760 --> 0:11:47.160 of in general because all the matter we have growth 0:11:47.160 --> 0:11:50.680 both on the traditional CPU and obviously on the I side, 0:11:50.679 --> 0:11:53.400 but on the I demand continued to be very, very strong. 0:11:54.000 --> 0:11:56.000 You know, as of today we have more than three 0:11:56.040 --> 0:11:59.600 and a half billion dollars in backlog. That shows the 0:11:59.640 --> 0:12:03.280 moments that's there in the market. Now we're seeing a 0:12:03.400 --> 0:12:09.319 significant uptake in the pipeline in enterprise AI, but in 0:12:09.360 --> 0:12:12.560 total we have a pipeline that's a multiple of the backlogs. 0:12:12.600 --> 0:12:15.000 So as we go into twenty twenty five, obviously there 0:12:15.080 --> 0:12:18.160 is a transition to the direct liquid cool set of 0:12:18.200 --> 0:12:21.640 technologies with Blackwell and Grace Blackwell, and as you know, 0:12:22.160 --> 0:12:24.760 two months ago we announced a new architecture which is 0:12:24.760 --> 0:12:28.160 one hundred percent fund less. Direct liquid cooling is the 0:12:28.280 --> 0:12:31.760 industry first and one third more than one third of 0:12:31.880 --> 0:12:33.880 that three and a half been under a backlog is 0:12:33.920 --> 0:12:36.960 already on black Bell, So we expect continue growth as 0:12:37.000 --> 0:12:38.160 we go into twenty five. 0:12:38.520 --> 0:12:41.640 How are those Blackpole shipments looking how certain. 0:12:42.920 --> 0:12:46.959 Well, definitely is all very consistent to what we have 0:12:47.080 --> 0:12:51.360 seen the number of customers continue to grow. The demand 0:12:51.520 --> 0:12:55.240 across four different segments continue to be very solid. You know, 0:12:55.280 --> 0:12:58.439 when I think about THEI I think about four distinct segments. 0:12:58.559 --> 0:13:01.800 I call it the model builders and the hyperscalers, then 0:13:01.840 --> 0:13:04.840 the Tier two, Tier three service provider, the sovereign which 0:13:04.920 --> 0:13:08.160 is growing very rapidly in terms of interest, and the 0:13:08.200 --> 0:13:10.400 cell cycles a little bit longer there. But in talking 0:13:10.440 --> 0:13:13.280 about large scale deployment, and we are in the process 0:13:13.280 --> 0:13:17.360 to building in the UK the UK Bristol AI Cloud 0:13:17.600 --> 0:13:21.640 and in Japan the ais T and then the enterprise 0:13:21.760 --> 0:13:25.400 which obviously the order value is significant lower, but the 0:13:25.520 --> 0:13:27.600 number transaction is significantly higher. 0:13:27.600 --> 0:13:30.360 But the supply side has been the issue with Blackwell 0:13:30.360 --> 0:13:34.080 in particular. How swiftly are those shipments arriving? How on 0:13:34.240 --> 0:13:35.520 track do you now feel it is? 0:13:36.960 --> 0:13:39.840 Yeah, I will say, you know, the supply will come 0:13:39.880 --> 0:13:42.600 in due time because of the transition that Jensen and 0:13:42.640 --> 0:13:46.400 team are driving. I will not say it's problematic, it's 0:13:46.440 --> 0:13:49.080 just the transition in early parts of twenty twenty five. 0:13:49.640 --> 0:13:52.480 Today we continue to ship you know H one hundreds 0:13:52.840 --> 0:13:56.200 and the H two hundreds. But as I said earlier Carolyn, 0:13:56.280 --> 0:13:58.679 we already have more than one third of that more 0:13:58.720 --> 0:14:00.880 than three and a half billion dollars of the Blackwell, 0:14:01.160 --> 0:14:03.520 and a lot of that has to do with companies 0:14:03.559 --> 0:14:06.160 that lead with that technology because they want to get 0:14:06.280 --> 0:14:10.920 better performance, better image density, and ultimately lower the cost 0:14:10.920 --> 0:14:11.480 per training. 0:14:11.679 --> 0:14:14.400 You were really interesting articulating just the breadth of demand 0:14:14.440 --> 0:14:17.400 coming from there, mentioning sovereign as well as enterprise for example. 0:14:17.559 --> 0:14:19.280 How resilient is that demand? 0:14:19.360 --> 0:14:21.560 What's interesting about your backlog, which you say is very 0:14:21.600 --> 0:14:24.200 resilient and strong, but there was a seven hundred. 0:14:23.920 --> 0:14:28.400 Million dollar d booking. How confident are you in. 0:14:28.280 --> 0:14:31.240 Some of these purchases, in some of these deals that 0:14:31.280 --> 0:14:31.920 have been signed. 0:14:32.920 --> 0:14:36.280 Yeah, so in our current more than three and a 0:14:36.280 --> 0:14:39.800 half billion dollars, are very very confident. In Q four, 0:14:39.880 --> 0:14:42.960 we booked one point two billion dollars of new orders, 0:14:43.600 --> 0:14:46.840 and we decided to book a specific orders because we 0:14:46.960 --> 0:14:50.640 had specific concerns about the risk associated with that order, 0:14:51.120 --> 0:14:54.320 and we have very very strong controls in place, and 0:14:54.360 --> 0:14:57.840 we felt that because of the risk associated with even 0:14:57.880 --> 0:15:01.520 the finance inside, we felt this not worth the headache, 0:15:01.920 --> 0:15:04.840 and honestly, we decided to focus on the number of 0:15:05.120 --> 0:15:08.720 growing customers we have and allocated supply to the right customers, 0:15:08.760 --> 0:15:11.640 So that's why we decided to debook the specific order. 0:15:11.680 --> 0:15:15.800 Caroline, you're also doing deals, of course, we are hearing 0:15:15.880 --> 0:15:19.320 confidence on June and Pan Networks acquisition for the early 0:15:19.400 --> 0:15:22.480 twenty twenty five. Is that just going to sell through DOJ? 0:15:22.560 --> 0:15:24.000 Do you expect with the next administration? 0:15:24.720 --> 0:15:27.000 Yeah, Well, first of all, we have received pretty much 0:15:27.040 --> 0:15:30.960 all the approvals around the world with you know what 0:15:31.000 --> 0:15:35.480 I call unconditional support. Basically, it tells you that the 0:15:35.520 --> 0:15:38.360 rest of the world sees this pro competitive and with 0:15:38.440 --> 0:15:41.440 the DOJ, we have had a very collaborative process through 0:15:41.640 --> 0:15:45.320 throughout the last several months, and we expect the transaction 0:15:45.440 --> 0:15:47.720 to close in the early part of twenty twenty five, 0:15:48.040 --> 0:15:51.600 which still is within the original timelines we stated when 0:15:51.600 --> 0:15:54.640 I announced the deal on January tenth, which was end 0:15:54.640 --> 0:15:57.960 of calendar twenty twenty four or early part of calendar 0:15:58.080 --> 0:16:01.400 twenty twenty five. And so nothing gives me post that 0:16:01.480 --> 0:16:04.280 will not be the case. And then in addition, for 0:16:04.320 --> 0:16:07.600 the United States, this is good not just pro competitive, 0:16:07.640 --> 0:16:11.400 but also for US national security because ultimately the combination 0:16:11.480 --> 0:16:15.200 and Juniper HP provides a better ability for US to 0:16:15.280 --> 0:16:18.760 compete outside the United States, particularly when you have Chinese 0:16:18.760 --> 0:16:21.080 competitor around the globe, and remember a part of that. 0:16:21.600 --> 0:16:25.560 For the United States, we provide the largest supercomputers that 0:16:25.720 --> 0:16:29.800 are doing also AI and that requires a lot of networking. 0:16:29.840 --> 0:16:32.640 And today i Qula pack and Enterprise owns seven of 0:16:32.680 --> 0:16:35.800 the top ten supercomputers. Number one, number two, and number 0:16:35.880 --> 0:16:37.680 three are HP Systems. 0:16:38.000 --> 0:16:40.160 Well being reflected in a new record high on the 0:16:40.160 --> 0:16:43.440 share price and augustanding sounding very upbeat about eventually what 0:16:43.560 --> 0:16:46.280 Juniper does in terms of accretion. We thank you Antonio 0:16:46.280 --> 0:16:50.080 and ery c Hpeco today. I meanwhile coming up us 0:16:50.200 --> 0:16:52.120 Haring picked up in November, adding two hundred and twenty 0:16:52.120 --> 0:16:56.000 seven thousand jobs. We've discussed the resilience in the tech sector, 0:16:56.240 --> 0:16:58.680 what it means in terms of impact. We are just 0:16:59.080 --> 0:17:01.360 reflecting on a couple of stories out of France today. 0:17:01.680 --> 0:17:05.239 Ubersoft up twelve let's call it thirteen percent this as 0:17:05.240 --> 0:17:07.680 we get an articulation and potentially what some sort of 0:17:07.760 --> 0:17:11.160 management buyout could be looking like the Gilamott family holding 0:17:11.200 --> 0:17:13.600 talks with ten cent as of room reported by Reuters 0:17:13.600 --> 0:17:16.440 and other investors. We're up thirty percent there, and boy 0:17:16.440 --> 0:17:19.320 are we down on Athos. Look, we're basically nil nil 0:17:19.400 --> 0:17:22.800 point ninety eight percent lower that you're seeing for a 0:17:22.840 --> 0:17:25.600 price point on at ours stock. This as we are 0:17:25.800 --> 0:17:29.040 expecting a subscription price of its recent rights offering sinking, 0:17:29.720 --> 0:17:32.600 you know, ultimately coming to a very low number stocking 0:17:32.680 --> 0:17:37.280 trading as you see at zero. This is blombog technology 0:17:50.040 --> 0:17:52.800 time now for talking tech. First up, NASA hasn't landed 0:17:52.800 --> 0:17:55.000 on the Moon in fifty years. The next one now 0:17:55.000 --> 0:17:57.359 won't happen until at least twenty twenty seven. The newly 0:17:57.359 --> 0:18:01.119 announced delays come as engineers raised the crucial safety issue 0:18:01.119 --> 0:18:03.760 related to hardware now. The agency also announced it will 0:18:03.760 --> 0:18:07.160 delay a moonfly by until twenty twenty six. The scheduling 0:18:07.200 --> 0:18:10.119 setbacks are the latest in the program plagued by spacecraft 0:18:10.119 --> 0:18:14.560 cost overruns and technical hurdles. Meanwhile, Uber launching its first 0:18:14.600 --> 0:18:17.840 robo taxi service in Abadami, making good on a partnership 0:18:17.880 --> 0:18:21.680 struck with Chinese vehicle partner we Ride. Customers are able 0:18:21.720 --> 0:18:24.800 to request autonomous vehicles around key tourist areas in the UAE, 0:18:25.040 --> 0:18:28.520 and Uber expects to fully launch its driveraler's service. 0:18:28.359 --> 0:18:29.320 In twenty twenty five. 0:18:30.040 --> 0:18:33.000 And the dramatic events in South Korea this week has 0:18:33.040 --> 0:18:35.800 catapulted a year old movie to the top of the 0:18:35.800 --> 0:18:39.000 Netflix charts. The film twelve twelve The Day, became at 0:18:39.040 --> 0:18:42.080 the number one Korean film streamed since South Korean President 0:18:42.160 --> 0:18:45.119 unsub yul stunned the nation by imposing Marshall Law. The 0:18:45.119 --> 0:18:47.720 twenty twenty three blockbuster depicts the events surrounding. 0:18:47.359 --> 0:18:49.480 A coup in nineteen seventy nine. 0:18:50.640 --> 0:18:53.480 Now, there have been some big market moves today and 0:18:53.560 --> 0:18:55.480 in large part is on the back of US job 0:18:55.520 --> 0:18:57.960 Stata November payrolls coming in strong two hundred and twenty 0:18:58.000 --> 0:18:58.800 seven thousand added. 0:18:59.080 --> 0:19:00.840 But we want to get the ten perspective. 0:19:01.000 --> 0:19:04.400 Sarah frankpin Let, us CEO, joins US now and Sarah, 0:19:04.440 --> 0:19:07.680 we are fascinated by ultimately how resilient this US job's 0:19:07.720 --> 0:19:10.520 data looks, and how that resilience is. 0:19:10.480 --> 0:19:14.680 Potentially being born out in tech. Is it so what 0:19:14.720 --> 0:19:15.960 you're saying is true. 0:19:16.000 --> 0:19:18.800 We're seeing this resilience, we're seeing predictability, and we're seeing 0:19:18.800 --> 0:19:22.280 balance in the data, and we're seeing incredible time and 0:19:22.400 --> 0:19:25.000 tech not just with the jobs report and the two 0:19:25.040 --> 0:19:28.040 hundred twenty seven thousand jobs, but also with a new 0:19:28.240 --> 0:19:31.680 entrant to the labor force, with digital labor. 0:19:32.160 --> 0:19:35.480 Let's just talk about how augmenting digital labor is or not. 0:19:36.000 --> 0:19:38.800 It's interesting your Alma Mater salesforce coming out saying they're 0:19:38.840 --> 0:19:41.000 going to be reallocating a thousand workers to be going 0:19:41.040 --> 0:19:43.560 out and selling their agent force. How much are we 0:19:43.640 --> 0:19:45.720 having to see people work in tandem with the growth 0:19:45.720 --> 0:19:46.920 of generative AI. 0:19:48.160 --> 0:19:50.960 You're definitely seeing this new world where AI is working 0:19:51.000 --> 0:19:54.919 together with humans and where people are successful working together 0:19:54.960 --> 0:19:59.600 with AI technology. And every CEO is looking to the 0:19:59.600 --> 0:20:02.760 future in saying, how do I reshape my workforce? How 0:20:02.800 --> 0:20:05.280 do I bring AI in to help us be more productive, 0:20:05.560 --> 0:20:08.119 more efficient from the public to the private sector. 0:20:08.680 --> 0:20:12.040 Okay, so where are some of the worries that are 0:20:12.080 --> 0:20:14.119 still overhanging in CEOs? That it does seem to be 0:20:14.119 --> 0:20:17.800 this disconnect that we've got all of these generative AI 0:20:17.880 --> 0:20:21.359 tools fit for use to buoy our productivity, but actually 0:20:21.400 --> 0:20:23.520 a lot of the workforce are either scared to use 0:20:23.520 --> 0:20:25.200 it because they think they'll be deemed lazy or do 0:20:25.240 --> 0:20:26.400 you just don't getting the training? 0:20:26.480 --> 0:20:27.520 Is that something to change? 0:20:28.560 --> 0:20:32.359 So AI literacy and AI proficiency are more important than ever, 0:20:32.480 --> 0:20:34.840 And yes, every CEO is saying, how do I bring 0:20:34.880 --> 0:20:37.960 my workforce along my people along, to skill them, to 0:20:38.040 --> 0:20:40.800 train them, to make them proficient, not just literate, but 0:20:40.840 --> 0:20:44.600 proficient in these technologies. It's critical for every job function, 0:20:44.720 --> 0:20:50.080 whether you're doing customer service, sales, accounting, data operations. AI 0:20:50.240 --> 0:20:53.440 is a part of everyone's jobs and so the skilling 0:20:53.560 --> 0:20:57.000 and the training is hand in hand with the implementation 0:20:57.359 --> 0:20:58.280 of the technology. 0:20:59.040 --> 0:21:01.879 I ask it short each time you'll run, but I 0:21:01.960 --> 0:21:04.600 ask it again, is it affecting the number of people 0:21:05.000 --> 0:21:06.000 that companies can have? 0:21:07.280 --> 0:21:11.920 So there's definitely efficiency gains that we'll see, and companies 0:21:11.960 --> 0:21:15.639 are looking to have a way to scale their workforce 0:21:15.760 --> 0:21:18.879 in ways that meets their needs. And so we're going 0:21:18.960 --> 0:21:23.240 to see shifts in the labor and jobs will change, 0:21:23.480 --> 0:21:25.960 some jobs will be created, some jobs may go away. 0:21:26.000 --> 0:21:28.760 But the future is one where AI and digital labor 0:21:28.960 --> 0:21:31.760 is here. The reports coming out of Deloitte say that 0:21:31.800 --> 0:21:34.040 a quarter of enterprises next year are going to be 0:21:34.040 --> 0:21:37.560 deploying digital agents and so it's important that everybody learned 0:21:37.560 --> 0:21:40.840 this technology and every CEO is looking how they shape 0:21:40.840 --> 0:21:43.919