WEBVTT - US Says Framework for TikTok Deal Reached 0:00:02.520 --> 0:00:12.920 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is alive 0:00:12.960 --> 0:00:16.759 from coast to coast with Caroline Hide in New York 0:00:17.079 --> 0:00:20.200 and Ed Lovelow in San Francisco. 0:00:22.320 --> 0:00:23.439 This is Bloomberg Tech. 0:00:23.600 --> 0:00:26.239 Coming up a framework to keep TikTok running in the 0:00:26.320 --> 0:00:29.320 US reached and Donald Trump Warren out the details with 0:00:29.400 --> 0:00:31.120 Shijingping later this week. 0:00:31.200 --> 0:00:34.680 Plus, Elo Musk buys millions of Tesla shares following the 0:00:34.720 --> 0:00:37.960 board's unprecedented pay proposals, and. 0:00:37.960 --> 0:00:41.040 US Energy Secretary Chris Wright joins us later this hour 0:00:41.200 --> 0:00:44.800 to discuss his big European swing, powering the AI revolution 0:00:45.159 --> 0:00:45.840 and much more. 0:00:46.080 --> 0:00:48.800 Meanwhile, big swings still being taken in the market. Ed 0:00:49.200 --> 0:00:52.200 nine straight days of gains on the nasback one hundred 0:00:52.360 --> 0:00:55.480 longest winning streets is November twenty twenty three. We are 0:00:55.480 --> 0:00:57.639 at a new record higher up six ten percent. You're 0:00:57.640 --> 0:00:59.280 looking at the individual stocks underneath this. 0:01:00.080 --> 0:01:01.800 Yeah, it's a very busy start to the week in 0:01:01.840 --> 0:01:04.120 the world of technology. Elon Musk has bought a billion 0:01:04.160 --> 0:01:06.240 dollars of Tesla stock. 0:01:06.240 --> 0:01:07.400 We will discuss it in the show. 0:01:07.440 --> 0:01:09.000 It was on the same day that we spoke to 0:01:09.480 --> 0:01:12.880 the board chair of Tesla Alphabet parent of Google has 0:01:12.959 --> 0:01:16.080 joined the three trillion dollar market cap club and shares 0:01:16.160 --> 0:01:17.080 are at all time high. 0:01:17.080 --> 0:01:18.319 We'll get to that lage one two. 0:01:18.640 --> 0:01:21.959 Then news a framework has been reached between the United 0:01:22.000 --> 0:01:24.960 States and China for a deal that would allow TikTok 0:01:25.040 --> 0:01:28.560 to continue in the United States. The market reaction was 0:01:28.600 --> 0:01:32.280 in shares of Oracle. Let's understand why bringing Bloomberg Senior 0:01:32.319 --> 0:01:34.080 Tech editor Mike Shephard in DC. 0:01:34.280 --> 0:01:35.280 So, we don't know a lot. 0:01:35.480 --> 0:01:38.120 We know a frameworks in place, we know the President 0:01:38.200 --> 0:01:40.720 of the United States. We'll meet with g on Friday. 0:01:40.959 --> 0:01:43.600 They'll discuss it. What else do we need to know, Mike? 0:01:44.959 --> 0:01:46.840 The things that we need to know are pretty much 0:01:46.880 --> 0:01:50.440 that a lot of the details remain unknown at this point. 0:01:50.480 --> 0:01:53.040 We have not heard from the Chinese side yet to 0:01:53.200 --> 0:01:56.720 confirm that they also view that a framework deal is 0:01:56.760 --> 0:01:59.800 in hand that would allow TikTok's US operations at the 0:02:00.280 --> 0:02:02.760 least to stay running. We don't know what the terms 0:02:02.800 --> 0:02:06.000 are of the transaction, what Beijing would be willing to 0:02:06.120 --> 0:02:09.440 hand over, and that includes ed the algorithm. This is 0:02:09.480 --> 0:02:13.040 the recommendation software that is really viewed as a crown 0:02:13.160 --> 0:02:17.520 jewel of TikTok's operations. Globally, and the question has always been, 0:02:17.680 --> 0:02:21.560 would Beijing allow Byte Dance, the parent of TikTok, to 0:02:21.680 --> 0:02:25.359 part with at least some of that recommendation software to 0:02:25.680 --> 0:02:29.200 US based buyers. Unclear whether that's going to happen, and 0:02:29.400 --> 0:02:33.360 unclear whether the terms of this transaction will satisfy the 0:02:33.800 --> 0:02:38.040 national security terms. That the Chinahawks who pioneered the legislation 0:02:38.280 --> 0:02:42.440 in twenty twenty four, are requiring the divestiture by by 0:02:42.600 --> 0:02:45.960 edance of TikTok or a ban, whether they will be 0:02:46.080 --> 0:02:49.079 satisfied by whatever they see a lot. We'll ride on 0:02:49.120 --> 0:02:52.279 this phone call Friday between Xijiping and Donald. 0:02:52.000 --> 0:02:55.120 Trump ed and boy, Mike, is there a lot to 0:02:55.160 --> 0:02:59.040 discuss between Jijingping and President Trump and not just TikTok, 0:02:59.080 --> 0:03:02.559 but in video or another key chip within this whole negotiation. 0:03:02.720 --> 0:03:05.360 And we understand that China is ruling that in Video 0:03:05.440 --> 0:03:07.799 in some way is being deemed well a monopoly or 0:03:07.800 --> 0:03:11.000 at least violating anti monopoly laws. Can you take us 0:03:11.320 --> 0:03:11.600 up to. 0:03:11.520 --> 0:03:16.880 Speed, Well, you know, Cara, the announcement today from China 0:03:17.240 --> 0:03:23.000 from their state competition agency that found in Nvidia violating 0:03:23.200 --> 0:03:27.520 anti monopoly laws in the country. It's no coincidence. The 0:03:27.600 --> 0:03:31.760 relationship between the US and China is very tightly orchestrated 0:03:32.080 --> 0:03:37.760 and stage managed, and this ruling that was announced earlier 0:03:37.840 --> 0:03:41.960 this morning really is a message to the US going 0:03:42.000 --> 0:03:45.280 after the most valuable company in the world, provider of 0:03:45.360 --> 0:03:48.280 the chips that are powering the AI revolution that are 0:03:48.320 --> 0:03:51.240 seen as essential not only for meta platforms and all 0:03:51.320 --> 0:03:54.760 the other US hyperscalers, but a lot of other Chinese 0:03:54.800 --> 0:03:58.520 companies that have favored the H twenty chip, for instance, 0:03:58.520 --> 0:04:01.760 in building their own model that the Trump administration has 0:04:01.880 --> 0:04:05.839 recently given back permission to Invidia to resume sales of 0:04:05.880 --> 0:04:08.600 that chip. But now we are seeing this headwind for 0:04:09.280 --> 0:04:12.560 Nvidia in China, and it will be a test of 0:04:12.600 --> 0:04:16.320 the transatlantic relationship not only for Donald Trump and Chi Jianping, 0:04:16.640 --> 0:04:19.960 but also for Nvidia CEO Jensen Wang, who has cultivated 0:04:20.000 --> 0:04:22.760 ties in Beijing as well, trying to ensure that his 0:04:22.880 --> 0:04:26.880 company still has a sizeable enough footprint there to compete 0:04:26.880 --> 0:04:28.160 with the likes of Huawei. 0:04:28.279 --> 0:04:28.840 So we'll be. 0:04:28.880 --> 0:04:32.280 Again watching this phone call on Friday between Trump and 0:04:32.360 --> 0:04:36.480 she to see what is also said about Nvidia. Remember, 0:04:36.760 --> 0:04:40.200 Donald Trump and Jensen Wong have forged this relationship a 0:04:40.240 --> 0:04:43.160 close relationship, and he is betting on a Nvidia's success 0:04:43.320 --> 0:04:46.240 as part of the administration's broader AI program. 0:04:46.320 --> 0:04:48.880 Carol Mike Shepherd wrapping it all up from Washington. We 0:04:48.920 --> 0:04:51.640 so appreciate it. Let's dig into what the investor sentiment 0:04:51.720 --> 0:04:54.640 is like. Tiffany Wade, senior portfolio manager at Columbia thread Needle, 0:04:54.680 --> 0:04:58.159 joins us in. Tiffany, if I just don't care ultimately, 0:04:58.240 --> 0:05:00.000 and video is down about one and a half persore, 0:05:00.279 --> 0:05:02.280 but it rallied more than six percent last week, and 0:05:02.320 --> 0:05:04.040 you could say it's just a bit of profit taking. 0:05:04.279 --> 0:05:06.560 More broadly, markets that are record high and focused on 0:05:06.600 --> 0:05:09.080 the FED, should they be more worried about this tit 0:05:09.080 --> 0:05:10.159 for tat China US. 0:05:10.480 --> 0:05:10.680 Yeah. 0:05:10.680 --> 0:05:12.320 I think that's a great point. In videos down a 0:05:12.320 --> 0:05:14.760 little bit today. There was also headlines related to China 0:05:14.760 --> 0:05:17.560 looking at some analog semi companies for dumping earlier in 0:05:17.600 --> 0:05:20.039 the weekend. Those docks are barely down as well. So 0:05:20.120 --> 0:05:22.320 I think what that's telling you is that investors think 0:05:22.320 --> 0:05:25.560 that this is more of posturing by China in relation 0:05:25.680 --> 0:05:27.760 to trade talks, and that there's not going to be 0:05:27.800 --> 0:05:30.240 a significant impact on these companies' earnings over the long 0:05:30.320 --> 0:05:33.440 term that it's really just posturing Tiffany. 0:05:33.520 --> 0:05:37.080 Another piece of news this morning the President posting on 0:05:37.160 --> 0:05:42.520 social media that American companies should not be subject to 0:05:42.640 --> 0:05:47.760 quarterly reporting, they should report earnings every six months, and 0:05:47.800 --> 0:05:51.400 the President also acknowledged that would be pending authorization by 0:05:51.440 --> 0:05:54.880 the SEC. But if somebody in the markets, would you 0:05:55.000 --> 0:05:58.440 just react to that piece of news from the President please? 0:05:59.279 --> 0:05:59.479 Yeah? 0:05:59.480 --> 0:06:02.240 I think this is an interesting one, and there's arguments 0:06:02.240 --> 0:06:07.360 on both sides of this. The you know, European regulator 0:06:07.400 --> 0:06:09.960 only requires companies to report every six months, so there 0:06:10.000 --> 0:06:12.000 is a model for this or a framework for this. 0:06:12.480 --> 0:06:15.680 From a company perspective, it likely reduces some of the 0:06:15.880 --> 0:06:20.640 reporting requirements for them, some of the reporting burdens for companies. 0:06:20.680 --> 0:06:22.800 But I think from an investor perspective, what it does 0:06:22.880 --> 0:06:27.240 is reduces volatility for or it reduces visibility for investors 0:06:27.240 --> 0:06:31.520 since we have less information points from companies. Potentially also 0:06:31.600 --> 0:06:36.720 increases the sort of information disparity between investors institutional investors 0:06:36.960 --> 0:06:40.279 in retail investors, and then potentially also increases volatility because 0:06:40.279 --> 0:06:43.440 you have less touch points with the companies, you know, 0:06:43.520 --> 0:06:48.160 perhaps a greater disparity between estimates and actual numbers from 0:06:48.160 --> 0:06:51.279 the company that could increase volatility around reports. 0:06:52.520 --> 0:06:54.520 I love it in the context of data points. At 0:06:54.560 --> 0:06:56.359 the top of the program, we had the headline that 0:06:56.440 --> 0:06:59.480 alphabet has joined the three trillion dollar market cap club, right, 0:06:59.520 --> 0:07:02.040 and if you think about the story at earnings, it 0:07:02.200 --> 0:07:06.240 still was the Hyperscalers sharing with us their capital expenditures 0:07:06.279 --> 0:07:09.640 plans a data set. You know, how would this idea 0:07:10.280 --> 0:07:13.360 impact those kind of soft data points that now the 0:07:13.400 --> 0:07:14.680 market really relies on. 0:07:15.560 --> 0:07:18.320 Yeah, that's interesting for the Hyperscalers and for the company 0:07:18.320 --> 0:07:21.800 as they're developing AI models because they use data. Right, 0:07:21.800 --> 0:07:24.360 the more data, the more powerful the models become. So 0:07:24.840 --> 0:07:28.080 especially with regards to models that are maybe intended for 0:07:28.080 --> 0:07:31.760 a financial analysts or that are intended to help analysts 0:07:31.800 --> 0:07:34.600 with research, less data means less robust models. 0:07:35.400 --> 0:07:39.600 What's interesting is there's always this anxiety that the amount 0:07:39.600 --> 0:07:43.280 of data, the amount of compliance means that it puts 0:07:43.320 --> 0:07:45.640 off companies going public. For last week, we had the 0:07:45.720 --> 0:07:48.880 busiest week for IPOs of a sizable nature in about 0:07:48.880 --> 0:07:51.280 four years, according to some. So what do you make 0:07:51.360 --> 0:07:55.920 of just this weighing up of demand insatiable investor demand 0:07:55.960 --> 0:07:58.960 on one side, with compliance and overbearingness. 0:07:59.000 --> 0:08:02.400 On the other Yeah, I think we've had a tremendous 0:08:02.440 --> 0:08:04.760 year for IPOs. This is certainly in contrast to the 0:08:04.840 --> 0:08:05.880 last three years. 0:08:05.920 --> 0:08:07.080 So the IPO. 0:08:07.600 --> 0:08:09.720 Volume so far through the middle of September this year 0:08:09.800 --> 0:08:11.640 is larger than it was for the full year of 0:08:11.680 --> 0:08:14.920 twenty two, twenty three, and twenty four. So definitely some 0:08:14.960 --> 0:08:17.480 pent up demand from companies that have wanted to go public. 0:08:18.040 --> 0:08:21.080 I think it reflects certainly capital markets being open, you know, 0:08:21.160 --> 0:08:24.240 stocks are at all time highs. Also a little bit 0:08:24.280 --> 0:08:28.520 of improved investor sentiment around the confidence in the economy 0:08:28.560 --> 0:08:29.960 as well as. 0:08:29.960 --> 0:08:32.880 An asset manager should you be buying in. Initially the 0:08:32.920 --> 0:08:34.960 barb was very high. Companies had to be profitable, they 0:08:34.960 --> 0:08:37.000 had to be showing growth on the bottom line as 0:08:37.000 --> 0:08:38.880 well as top line, But of late that seems to 0:08:38.880 --> 0:08:40.040 be pushed out the window too. 0:08:40.280 --> 0:08:43.000 Yeah, you're definitely seeing some of that. The growth stocks 0:08:43.040 --> 0:08:45.480 coming back to market with no earnings or you know, 0:08:45.520 --> 0:08:47.560 earnings in a couple of quarters or free cash flow 0:08:47.559 --> 0:08:50.080 in a couple of quarters now is back certainly a 0:08:50.080 --> 0:08:52.960 good indicator for companies and that growth yer part of 0:08:52.960 --> 0:08:56.240 the economy that investors are willing to invest in. Some 0:08:56.320 --> 0:08:59.319 more speculative companies, but we've also seen IPOs in the 0:08:59.400 --> 0:09:01.760 last couple of weeks in the consumer space. There's another 0:09:01.800 --> 0:09:03.920 one coming this week in the energy space that seems 0:09:03.920 --> 0:09:06.920 to be very well subscribed. So it's not just in tech, 0:09:06.960 --> 0:09:08.240 it's really across the board. 0:09:08.920 --> 0:09:10.959 Tiffany, I want to end the conversation going back to 0:09:11.280 --> 0:09:13.800 where we started today, which is the relationship between the 0:09:13.880 --> 0:09:16.720 US and China. We have a framework for a TikTok deal. 0:09:16.840 --> 0:09:20.240 The President will speak by phone with Ujingping on Friday 0:09:20.600 --> 0:09:21.640 and in video is. 0:09:21.559 --> 0:09:23.080 Caught at the heart of this negotiation. 0:09:23.880 --> 0:09:27.200 How much you expect politics and political volatility to play 0:09:27.240 --> 0:09:31.080 into markets, particularly for technology, in the balance of this year. 0:09:32.200 --> 0:09:34.960 I think technology is going to continue to be sort 0:09:35.000 --> 0:09:38.880 of a hot spot for tariff negotiations, especially with China. 0:09:39.280 --> 0:09:42.200 It's kind of the biggest bargaining chip that both countries 0:09:42.280 --> 0:09:44.520 have with each other. So I don't imagine that the 0:09:44.600 --> 0:09:47.240 volatility around that will will quiet down, and it might 0:09:47.280 --> 0:09:51.360 even continue into future years, depending on how the Supreme 0:09:51.360 --> 0:09:54.400 Court rules on the AVA tariff. 0:09:55.640 --> 0:09:59.800 Yep tiffany Way, if Columbia freadneed or handling every single 0:09:59.800 --> 0:10:01.640 new item of the day that we threw you, thank 0:10:01.640 --> 0:10:04.360 you very much. Now coming up, Elon Musk buys about 0:10:04.360 --> 0:10:06.319 a billion dollars worth of Tesla shares. We're going to 0:10:06.360 --> 0:10:08.880 explain why and also how next. 0:10:09.400 --> 0:10:10.360 This is Bloomberg Tech. 0:10:21.360 --> 0:10:24.800 Elon Musk responded to an unprecedented pay proposal from the 0:10:24.840 --> 0:10:28.840 Tesla board bym buying about one billion dollars worth of shares. 0:10:28.880 --> 0:10:31.040 As you see, we're up six percent on the back 0:10:31.080 --> 0:10:33.320 of that demand. Let's bring in Billium, Meg's Global Auto's 0:10:33.440 --> 0:10:36.079 editor creatredel for more, who is also part of the 0:10:36.160 --> 0:10:40.760 Elon Inc. Team. Just showing boldness, showing a support for 0:10:40.800 --> 0:10:42.520 the company that investors seem to like. 0:10:42.559 --> 0:10:42.719 Here. 0:10:42.720 --> 0:10:45.880 How did he orchestrate it on Friday? 0:10:46.120 --> 0:10:48.280 Yeah, I mean he did it in the midst of 0:10:49.280 --> 0:10:53.680 you and ed talking with Robin Denholm at Tesla, the 0:10:53.760 --> 0:10:58.319 chair of the company. There's clearly a sort of coordinated 0:10:58.360 --> 0:11:01.160 effort on the part of Musk and board to really 0:11:01.240 --> 0:11:04.240 generate excitement about the future of this company at a 0:11:04.240 --> 0:11:06.920 time when there's a lot of reasons to be really concerned. 0:11:07.040 --> 0:11:10.000 Right in terms of the here and now business, we 0:11:10.080 --> 0:11:13.760 continue to see signs of of you know, really difficult 0:11:14.080 --> 0:11:20.200 demand issues. You know, we heard from Denholm that you know, 0:11:20.480 --> 0:11:23.679 the board downplays the extent to which Musk is doing 0:11:23.760 --> 0:11:27.640 damage to this brand with his politics and his involvement 0:11:27.679 --> 0:11:31.000 in that realm. But he then proceeded over the weekend 0:11:31.080 --> 0:11:34.640 to you know, do more politicing that you know, I 0:11:34.679 --> 0:11:37.160 think raises a lot of eyebrows, particularly here in the 0:11:37.200 --> 0:11:42.040 UK right. And so just how much there's really sort 0:11:42.080 --> 0:11:45.720 of meat to this optimism I think is going to 0:11:45.720 --> 0:11:47.120 be the question in the months to come. 0:11:48.320 --> 0:11:51.080 So Caroline and I were explicit with Robin Denholm in 0:11:51.160 --> 0:11:55.480 asking how did you the board define politics or political activity? 0:11:56.200 --> 0:11:59.079 Let's get some of what she She responded. 0:11:58.600 --> 0:12:03.840 With as from a personal perspective in terms of his 0:12:03.960 --> 0:12:08.720 political motivations, etc. Is up to him, I mean, clearly 0:12:08.800 --> 0:12:11.840 from our perspective as a board, we're measuring him on 0:12:11.960 --> 0:12:15.439 results and measuring him on what he does as a 0:12:15.720 --> 0:12:16.720 CEO of TESLA. 0:12:18.240 --> 0:12:20.280 So part of the reason we pose that question is 0:12:20.320 --> 0:12:23.560 because literally in the days since the proxy hit in 0:12:23.600 --> 0:12:26.840 the comp package was proposed, Musk has been very active 0:12:26.920 --> 0:12:31.320 on X talking in particular Craig about UK politics. That 0:12:31.440 --> 0:12:33.720 accelerated over the weekend. What's the latest. 0:12:35.200 --> 0:12:40.600 Yeah, this very far right convicted criminal Tommy Robinson puts 0:12:40.600 --> 0:12:45.640 on this march that I think, you know, did surprise 0:12:45.640 --> 0:12:47.720 a lot of people with how many people showed up. 0:12:47.760 --> 0:12:50.600 Of course, we should note there was a substantial counter 0:12:50.640 --> 0:12:53.520 protests that showed up for this as well. But a 0:12:53.559 --> 0:12:56.880 lot of you know, anti Muslim rhetoric, a lot of 0:12:57.400 --> 0:13:02.880 sort of you know, talk about this idea of civil war, 0:13:02.920 --> 0:13:04.120 which we've heard Musk use. 0:13:04.080 --> 0:13:05.200 That sort of rhetoric before. 0:13:05.720 --> 0:13:09.080 We've you know, on the backs of this heard you know, 0:13:09.840 --> 0:13:15.120 Cure Starmer's spokesmen and others in Westminster really you know, 0:13:15.280 --> 0:13:18.120 express alarm about this sort of charge language that we're 0:13:18.160 --> 0:13:21.000 hearing out of Musk. And you know, I think we're 0:13:21.040 --> 0:13:24.360 also in the US, of course, hearing over the weekend 0:13:24.440 --> 0:13:27.040 from the governor of Utah where Charlie kirk Kirk was 0:13:27.200 --> 0:13:30.160 assassinated last week talk about the sort of evils of 0:13:30.200 --> 0:13:33.680 social media and so on one hand, I think you know, 0:13:33.720 --> 0:13:37.280 from those comments that that Robin denhol Holme gave, it's 0:13:37.320 --> 0:13:39.760 clear that the board is willing to give pretty wide 0:13:39.840 --> 0:13:42.480 latitude in terms of what Musk is up to on 0:13:42.480 --> 0:13:45.679 a political basis. But if they're measuring four results, there 0:13:45.679 --> 0:13:49.080 are indications that this is not helping Tesla's brand. 0:13:50.360 --> 0:13:53.360 Bloomberg's global cars are crazy delh thank you just very 0:13:53.400 --> 0:13:56.560 quickly to buy those billion dollar shares. Musk used a 0:13:56.600 --> 0:13:58.560 revocable trust. Quite a few of you reached out to 0:13:58.600 --> 0:14:01.120 me to ask about that. It means that the trust 0:14:01.160 --> 0:14:04.000 can be changed in Mus's lifetime. It's a pretty normal 0:14:04.160 --> 0:14:08.560 tax focused tool that billionaires in the United States used 0:14:08.600 --> 0:14:12.320 largely for inheritance planning. Another story, last week, Oracle founder 0:14:12.440 --> 0:14:16.440 Larry Ellison momentarily surpassed Elon Musk to become the world's 0:14:16.520 --> 0:14:19.440 richest person. The shares of the tech giant surge starts, 0:14:19.520 --> 0:14:22.680 posting a major increase in bookings, putting Ellison top of 0:14:22.720 --> 0:14:24.280 the list, at least for a day. 0:14:24.360 --> 0:14:28.480 Here's the breakdown. For a few hours last week, the 0:14:28.640 --> 0:14:31.800 richest person in the world wasn't Elon Musk. It was 0:14:31.880 --> 0:14:35.400 Larry Ellison, whose personal fortune suddenly skyrocketed. 0:14:35.720 --> 0:14:39.360 Larry Ellison's net worth soared by eighty nine billion dollars. 0:14:39.360 --> 0:14:41.440 That was the biggest one day game ever recorded on 0:14:41.440 --> 0:14:42.840 the Bloomberg Billionaires Index. 0:14:43.280 --> 0:14:46.920 The cause of this giant leap the company Ellison co founded, Oracle, 0:14:47.360 --> 0:14:48.600 just had a bit of a moment. 0:14:48.880 --> 0:14:52.200 Oracle shares half search pre market after the company posted 0:14:52.240 --> 0:14:55.160 a major increase in bookings and gave an aggressive outlook 0:14:55.360 --> 0:14:57.280 for its cloud infrastructure business. 0:14:57.920 --> 0:15:01.560 Oracle made its name selling database back in the late seventies, 0:15:01.760 --> 0:15:04.560 but in recent years it's become a tech behemoth thanks 0:15:04.640 --> 0:15:06.960 to the key role it plays in cloud computing, and 0:15:07.000 --> 0:15:09.440 it's that demand for cloud services that has driven the 0:15:09.480 --> 0:15:11.200 company's recent stock surge. 0:15:11.400 --> 0:15:15.680 Oracle's cloud computing business is really in demand by AI companies. 0:15:15.920 --> 0:15:20.240 That's essentially allowed it to reframe its narrative around AI 0:15:20.320 --> 0:15:22.800 and to ride the stock boom that's been connected with 0:15:22.880 --> 0:15:23.920 other AI companies. 0:15:24.320 --> 0:15:26.760 On September tenth, it was revealed that Oracle made a 0:15:26.800 --> 0:15:29.960 deal with open Ai, the creators of chat GBT, worth 0:15:30.000 --> 0:15:32.040 three hundred billion dollars. 0:15:31.960 --> 0:15:34.160 And I think a lot of investors and analysts are 0:15:34.160 --> 0:15:37.640 assuming that if it can do deals like that, there 0:15:37.680 --> 0:15:39.560 will be more coming down the line. So if you've 0:15:39.560 --> 0:15:42.440 been paying attention to Oracle, this has actually been a 0:15:42.480 --> 0:15:45.240 while in the making. The last several quarters, this has 0:15:45.280 --> 0:15:47.560 been the story of their earnings. 0:15:47.360 --> 0:15:50.360 After years of sluggish growth. Oracle's revenue is expected to 0:15:50.480 --> 0:15:53.160 take off thanks to the race for AI computing power 0:15:53.360 --> 0:15:56.720 that sent sales in its cloud infrastructure unit Soaring. The 0:15:56.760 --> 0:15:59.480 new deal with open Ai builds on a critical AI 0:15:59.560 --> 0:16:00.960 agreement announced in July. 0:16:01.360 --> 0:16:02.920 This is an non precedent cloud deal. 0:16:02.960 --> 0:16:05.240 I mean, this is likely the largest single cloud deal 0:16:05.280 --> 0:16:06.000 I ever signed. 0:16:06.280 --> 0:16:08.760 Ellison and Oracle are part of a half a trillion 0:16:08.800 --> 0:16:12.240 dollar announcement called Stargate that Trump made several months ago. 0:16:12.280 --> 0:16:15.560 It's a partnership between Oracle, Open Ai, and soft Bank 0:16:15.600 --> 0:16:19.080 and the goals to build data centers for AI across 0:16:19.160 --> 0:16:22.280 the US, and Oracle will be a key computing power 0:16:22.320 --> 0:16:23.600 provider for that initiative. 0:16:23.920 --> 0:16:27.000 Well, the likes of Musk, Jeff Bezos, and Mark Zuckerberg 0:16:27.040 --> 0:16:30.040 have all vied for Donald Trump's attention, Ellison seems to 0:16:30.080 --> 0:16:33.480 have succeeded in nurturing a lasting working relationship with the 0:16:33.600 --> 0:16:34.280 US President. 0:16:34.480 --> 0:16:36.040 I have a high respect for Larry. 0:16:36.080 --> 0:16:38.200 Iis in to somebody I know. 0:16:38.400 --> 0:16:41.360 He's been really a terrific guy for a long time. 0:16:41.760 --> 0:16:44.240 While Oracle's share price has tripled in the three years 0:16:44.280 --> 0:16:47.480 since the arrival of chat GPT, the AI revolution wasn't 0:16:47.560 --> 0:16:50.120 enough to keep Ellison as the world's richest person. 0:16:50.560 --> 0:16:53.280 So this was a brief flirtation with the top spot 0:16:53.320 --> 0:16:56.240 for Larry Ellison. He was surpassed by the end of 0:16:56.240 --> 0:16:59.560 the day Wednesday by Elon Musk, again, who has been 0:16:59.760 --> 0:17:02.400 in first place in the Bloomberg Billionaires Index for much 0:17:02.400 --> 0:17:05.120 of the year. There are questions of how long this 0:17:05.200 --> 0:17:08.800 boom in AI stocks can last. A lot of investors 0:17:08.840 --> 0:17:12.160 have expressed concerns that at least some of these companies 0:17:12.359 --> 0:17:16.439 are overpriced at this point, and there are fears that 0:17:16.480 --> 0:17:19.400 if the economy starts to slow down that we could 0:17:19.400 --> 0:17:21.400 see a pullback in these stocks. And of course, if 0:17:21.400 --> 0:17:25.320 that happens, the billionaires whose wealth is tied to these companies, 0:17:25.359 --> 0:17:29.400 including Larry Elson, will see a concurrent fall in their fortunes. 0:17:29.640 --> 0:17:33.479 Musk stands to potentially leap far, far ahead of all 0:17:33.480 --> 0:17:35.960 of his billionaire peers in the coming years. It was 0:17:36.000 --> 0:17:40.200 announced recently that Tesla's board has approved a one trillion 0:17:40.240 --> 0:17:42.639 dollar pay package from US. He has to meet several 0:17:42.720 --> 0:17:45.879 very ambitious milestones in order to get all of that money, 0:17:46.359 --> 0:17:48.040 but if he does succeed in doing that, it could 0:17:48.119 --> 0:17:50.960 make him the world's first trillionaire. And there's no one 0:17:50.960 --> 0:17:53.280 else who would come anywhere close to that level as. 0:17:53.200 --> 0:17:53.720 Of right now. 0:17:54.880 --> 0:17:57.040 Boy, if we talked about that pay package at length 0:18:03.080 --> 0:18:05.760 time now for Talking Tech and first up Sony Pictures. 0:18:05.920 --> 0:18:09.040 Demon Slayer was the most popular film at the box 0:18:09.040 --> 0:18:11.200 office this weekend, and it is that a new high 0:18:11.240 --> 0:18:14.200 for the Japanese anime genre. It earned Sony million dollars 0:18:14.240 --> 0:18:16.679 in the US and Canada, having already grossed about two 0:18:16.920 --> 0:18:20.280 d eighteen million dollars worldwide going into the weekend. Plus, 0:18:20.359 --> 0:18:23.480 Snap has a new operating system for augmented reality glasses 0:18:23.560 --> 0:18:25.960 singly in the company is getting closer to launching a 0:18:25.960 --> 0:18:27.920 consumer version of the device next year. 0:18:28.080 --> 0:18:28.199 Now. 0:18:28.240 --> 0:18:31.399 Snap OS two point zero includes an overhaul browser and 0:18:31.520 --> 0:18:34.520 updated ar app. Snap is competing with the likes of Meta, 0:18:34.560 --> 0:18:37.920 Apple and Google in Space and Charmi Well, it's aiming 0:18:37.960 --> 0:18:40.560 to take on Apple with its later smartphones coming out 0:18:40.640 --> 0:18:43.919 later this month. Currently, Charmi only has a silver a 0:18:44.000 --> 0:18:47.199 sliver of the premium smartphone market globally, but it is 0:18:47.240 --> 0:18:49.680 well positioned to make games in China, where the release 0:18:49.720 --> 0:18:52.200 of Apple's i'vephone air it's been delayed. 0:18:53.560 --> 0:18:55.160 Okay, I'm going to bring you a story that broke 0:18:55.240 --> 0:18:57.960 late Friday. Apple's Robbie Walker, one of the I film 0:18:58.040 --> 0:19:02.080 Maker's most senior artificial intelligence to executives is leaving the company. 0:19:02.119 --> 0:19:03.440 That's according to sources. 0:19:03.800 --> 0:19:07.160 Walker's exit adds to an exodus of executives and engineers 0:19:07.160 --> 0:19:09.919 from Apple's AI division, going to bring in Bloomberg's Global 0:19:09.960 --> 0:19:13.440 Consumer Tech Managing editor Mark German, the story broke Mark. 0:19:14.040 --> 0:19:17.600 What was this executive's function and role that makes it 0:19:17.680 --> 0:19:22.119 so notable that it's the latest and another departure from Apple. 0:19:23.920 --> 0:19:26.480 Walker was in charge of Siri. It's as simple as that. Yeah, 0:19:26.640 --> 0:19:29.119 he was leading Siri for the last several years, but 0:19:29.200 --> 0:19:32.320 he was demoted out of that role in the spring 0:19:33.160 --> 0:19:35.920 when Apple realized that it would need to delay its 0:19:36.040 --> 0:19:40.240 new Apple Intelligence upgrade for Siri for upwards of a year. 0:19:40.960 --> 0:19:45.040 And after that Walker was removed from his position. His boss, 0:19:45.160 --> 0:19:48.800 John jen Andrea was removed from overseeing both Siri and 0:19:49.160 --> 0:19:53.760 Apple AI robotics teams, and more recently, Walker has been 0:19:53.800 --> 0:19:59.400 overseeing a team known as Answers Knowledge and Information. It's 0:19:59.440 --> 0:20:02.720 called a KI internally. This is a new team spun 0:20:02.800 --> 0:20:07.040 up Underwalker, and this group is responsible for helping build 0:20:07.080 --> 0:20:11.160 a new AI based web search tool that's coming next year, 0:20:11.600 --> 0:20:14.879 designed to compete with both Perplexity people. Going on to 0:20:14.920 --> 0:20:19.600 Perplexity to do searches. Right, You've seen Google traffic go 0:20:19.720 --> 0:20:22.919 down on Apple devices and favor some of these AI apps. 0:20:22.920 --> 0:20:26.359 So Apple wants some skin in that AI web search game. 0:20:27.119 --> 0:20:29.879 So he's been leading that or parts of that, and 0:20:29.960 --> 0:20:32.760 so his departure is quite notable. And more broadly, he's 0:20:32.840 --> 0:20:35.800 on the senior staff of John Jane Andrea. He's one 0:20:35.800 --> 0:20:38.639 of a few people who are leading the company's overall 0:20:38.680 --> 0:20:39.639 AI initiative. 0:20:39.920 --> 0:20:42.480 And of course, time and time again, you many others 0:20:42.520 --> 0:20:45.480 have been talking about how Apple is seeing me behind 0:20:45.480 --> 0:20:47.320 on the general of AI fight, but they're trying to 0:20:47.840 --> 0:20:49.919 remind us all of their prowess when it comes to 0:20:50.359 --> 0:20:53.680 innovation from what things look like feel like. Talk to 0:20:53.760 --> 0:20:55.560 us about the product innovation they've been talking on. 0:20:57.600 --> 0:21:00.760 Yeah, you know, Apple on this last keynote, it didn't 0:21:00.800 --> 0:21:04.560