WEBVTT - Tech Earnings Show Heavy AI Spending Continuing 0:00:00.080 --> 0:00:13.600 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.680 --> 0:00:17.479 from coast to coast with Caroline Hide in New York 0:00:17.760 --> 0:00:20.880 and Vla Lowe in San Francisco. 0:00:22.880 --> 0:00:24.560 This is Bloomberg Tech coming up. 0:00:24.600 --> 0:00:28.680 Alphabet, Microsoft and Meta all outward results showing heavy spending 0:00:28.720 --> 0:00:30.840 on AI and data center construction. 0:00:31.080 --> 0:00:34.040 Plus Roebrock CEO David Zooki joins us to discuss the 0:00:34.040 --> 0:00:37.519 company's earnings as users and jumping, but so are costs. 0:00:38.240 --> 0:00:40.360 And we'll break down what was said during the meeting 0:00:40.520 --> 0:00:44.400 between President Trump and China's Jugen King, what wasn't discussed 0:00:44.920 --> 0:00:46.360 and vidiots, blackweld chips. 0:00:46.840 --> 0:00:48.440 Let's turn our attention to these markets. 0:00:48.640 --> 0:00:51.680 And after record high, after record high, we take a breather. 0:00:51.800 --> 0:00:53.880 Then that's that one hundred HUNDERD pressure off by almost 0:00:53.880 --> 0:00:56.280 a percentage point. This as we think about the FED 0:00:56.440 --> 0:00:58.640 maybe not baking in that December cut as much as 0:00:58.640 --> 0:00:59.920 the market had anticipated. 0:01:00.160 --> 0:01:02.520 You add to that some concerns about AI spending. You 0:01:02.560 --> 0:01:03.400 add to that a. 0:01:03.480 --> 0:01:06.840 China US trade deton for a year that many felt 0:01:06.840 --> 0:01:09.399 were priced in ed and we just come down some 0:01:09.600 --> 0:01:12.080 across all asset classes. But you're looking under what's in 0:01:12.120 --> 0:01:13.720 the ecty moves yep. 0:01:13.840 --> 0:01:15.880 Let's get through the top stories, and Video is down 0:01:15.920 --> 0:01:19.840 two percent. Blackwell, its latest processor was not discussed in 0:01:19.880 --> 0:01:22.800 the meeting between President Trump ands Ujenping. Later in the 0:01:22.840 --> 0:01:25.120 show out to South Korea to get the details of 0:01:25.160 --> 0:01:28.160 that meeting. Then there's earnings Microsoft thirty nine percent top 0:01:28.200 --> 0:01:30.880 line growth in Azure, the cloud computing unit, the only 0:01:31.000 --> 0:01:33.959 unit that mattered, but the stock selling off high bar 0:01:34.040 --> 0:01:34.720 for investors. 0:01:34.800 --> 0:01:36.360 Alphabet is the one that's higher. 0:01:36.680 --> 0:01:39.039 It told us what its capital expenditures are this year, 0:01:39.120 --> 0:01:41.800 but it also told us about growth a real number 0:01:42.080 --> 0:01:45.480 on AI or generatorve AI related products. Then Meta, it 0:01:45.600 --> 0:01:49.160 is the biggest decliner and the biggest drag capital expenditure concern. 0:01:49.480 --> 0:01:52.840 Then this morning, coming to market with an up to 0:01:53.000 --> 0:01:56.400 six part bond sale maturities ranging five to forty years. 0:01:56.400 --> 0:02:00.080 The forty year note one point four percent over treasury 0:02:00.280 --> 0:02:04.160 above treasuries. There's a lot to discuss in Meta's capital 0:02:04.200 --> 0:02:06.480 requirements and then what it has to show for it. 0:02:06.680 --> 0:02:09.320 Let's do that with Brent. Phil Jeffrey's analyst joins us. 0:02:09.400 --> 0:02:13.080 Right now, let's start with Meta. That's kind of the equation, right, Okay, 0:02:13.520 --> 0:02:15.840 Capital expenditures will be higher next year than they were 0:02:15.960 --> 0:02:18.680 this year. Then what give us more, give us some 0:02:18.720 --> 0:02:21.880 longer term outlook. There just wasn't a formal guidance. Is 0:02:21.919 --> 0:02:23.600 that what spooked the market. 0:02:25.000 --> 0:02:28.000 Yeah, Meta was just in a period of being really comfortable. 0:02:28.200 --> 0:02:32.320 Zuck had been very comfortable. The company had executed, they 0:02:32.760 --> 0:02:36.680 had invested, and they were harvesting those investments, and now 0:02:36.720 --> 0:02:40.640 they're going back into invest mode. So I think at 0:02:40.680 --> 0:02:44.640 the beginning of the year, advertisers were seeing that Meta 0:02:44.800 --> 0:02:47.200 was more sheltered because they didn't know what Google was 0:02:47.240 --> 0:02:49.400 going to do with AI, and we didn't know what 0:02:49.440 --> 0:02:52.320 was going to happen to TikTok. And then halfway through 0:02:52.320 --> 0:02:55.400 the year, everyone realized, hey, Google's got their act together 0:02:55.440 --> 0:02:59.640 and AI, and we know that TikTok now has more 0:02:59.680 --> 0:03:02.520 of the foundation. So I think, as I call it, 0:03:02.560 --> 0:03:03.320 there's less. 0:03:03.200 --> 0:03:05.840 Of a tailwind for Meta. 0:03:05.919 --> 0:03:08.079 It's not a headwind, but it's less of a tailwind 0:03:08.080 --> 0:03:10.399 that they had at the beginning of the year when 0:03:10.400 --> 0:03:13.560 you talk to advertisers, and I think what Zuck said 0:03:13.600 --> 0:03:16.480 last night on the call was the investments in AI 0:03:16.560 --> 0:03:19.600 are paying off, and they just need more of them 0:03:19.880 --> 0:03:23.000 because everything they built, they felt like they had overbuilt 0:03:23.000 --> 0:03:24.760 and they sold out of what they built. 0:03:24.919 --> 0:03:28.200 Yeah, so they have to build more and so yeah. 0:03:28.040 --> 0:03:31.160 It doesn't have anything to do with the fundamental position. 0:03:31.240 --> 0:03:35.080 It's are we going to see margin compression and then 0:03:35.520 --> 0:03:37.760 when does that return come back? But we already know that. 0:03:37.800 --> 0:03:41.520 Then they have a return. We've saw with Microsoft. They've 0:03:41.520 --> 0:03:44.240 given this margin expansion even in the face of AI. 0:03:44.600 --> 0:03:47.560 So this whole concept that AI doesn't pay off is silly, 0:03:47.840 --> 0:03:49.480 you see, because but the. 0:03:49.480 --> 0:03:53.240 Stock move is so big that we question. 0:03:53.840 --> 0:03:56.760 Yes, we see Zuck on the call saying, look, I'm 0:03:56.760 --> 0:04:00.120 worried about underinvesting. We hear once again from Susan Lee 0:04:00.160 --> 0:04:03.360 that they're going to make notable investments. Everyone new Capex 0:04:03.440 --> 0:04:05.480 is going to go up into the right. Why is 0:04:05.520 --> 0:04:07.120 there such an air pocket on this stage? 0:04:07.160 --> 0:04:11.760 You think, well, I think the outperformance of Google, I 0:04:11.760 --> 0:04:14.840 think you have money chasing weren't a momentum market. I mean, 0:04:15.120 --> 0:04:18.520 look at yesterday before any year, Needs everything and applications 0:04:18.560 --> 0:04:21.400 went down aing, and AI went straight up in infrastructure. 0:04:22.040 --> 0:04:25.080 So if you have Capex going this high, the pushback 0:04:25.200 --> 0:04:27.680 is why do I invest in internet and software right now? 0:04:27.960 --> 0:04:31.279 I should be invested in energy and land, and it 0:04:31.400 --> 0:04:34.360 all the enabling infrastructure, and the infrastructure goes up every day. 0:04:34.440 --> 0:04:36.719 Look at all the energy names, they're all ripping. And 0:04:36.760 --> 0:04:40.040 so I think there's a common pattern with tech investors 0:04:40.120 --> 0:04:40.360 right now. 0:04:40.400 --> 0:04:42.040 They're just broader. 0:04:42.040 --> 0:04:45.719 Investors are moving their investments to other categories, and then 0:04:45.760 --> 0:04:50.920 they're chasing momentum. It's just the market's so narrow and 0:04:51.000 --> 0:04:55.680 you're seeing this. So there was nothing that was fundamentally offline. 0:04:56.440 --> 0:04:58.960 They're making any investment. They've done this before. How many 0:04:58.960 --> 0:05:00.880 times have we seen mat to do this and then 0:05:01.040 --> 0:05:02.880 return the stock goes hired. They're going to do thirty 0:05:02.880 --> 0:05:05.359 dollars running to power, put a thirty multiple on it. 0:05:05.760 --> 0:05:08.640 You're nine hundred dollars on the stock. It's a buy 0:05:08.680 --> 0:05:11.280 on the pullback, Brent. 0:05:12.440 --> 0:05:15.200 The name of momentum is Alphabet and Google. Right, they 0:05:15.240 --> 0:05:18.440 gave us two data points cap too Expenditch is ninety 0:05:18.480 --> 0:05:21.720 one billion to ninety three billion dollars. But revenue from 0:05:21.760 --> 0:05:24.400 products that are built on Google's generaty of AI models 0:05:24.600 --> 0:05:27.880 grew more than two hundred percent from a year earlier. 0:05:28.640 --> 0:05:31.400 That second part your reaction to it. 0:05:33.240 --> 0:05:36.680 I mean AI is working, and I think the fear 0:05:36.720 --> 0:05:39.320 that investors have had is what happens when I go 0:05:39.400 --> 0:05:41.920 from a world of search to AI. And I think 0:05:41.960 --> 0:05:45.880 Google is showing they can do the high wire act. 0:05:45.800 --> 0:05:47.440 Very well between search to AI. 0:05:48.400 --> 0:05:50.880 Everyone thought search would implode in the last two quarters, 0:05:50.880 --> 0:05:52.000 they beat the search number. 0:05:52.040 --> 0:05:54.960 This quarter they accelerated their search number. So what they're 0:05:54.960 --> 0:05:58.080 seeing is that search can be anywhere. It can be 0:05:58.120 --> 0:05:59.960 inside AI, can be in their own. 0:06:00.200 --> 0:06:03.760 Engine, it could be a YouTube, it could be across 0:06:03.800 --> 0:06:07.920 different properties. And I think what what Google is demonstrating. 0:06:07.920 --> 0:06:09.840 And we've said this kind of for a while. They 0:06:09.839 --> 0:06:13.560 have better AI underneath the hood than they're articulating, and 0:06:14.040 --> 0:06:15.039 it's now coming out. 0:06:15.279 --> 0:06:16.080 You can see it. 0:06:16.400 --> 0:06:18.520 We said, you know, they kind of pulled up. 0:06:18.440 --> 0:06:21.080 To the I race, you know, on a Toyota Camry 0:06:21.440 --> 0:06:24.360 body that they have the biggest engine and they pop 0:06:24.400 --> 0:06:27.320 the hood and everyone's like, whoa, this is incredible. And 0:06:27.320 --> 0:06:30.480 so I think everyone was realizing. When you look at Gemini, 0:06:31.000 --> 0:06:34.080 I mean we ran bench tests, it's almost equivalent to 0:06:34.120 --> 0:06:39.279 chet GPT. And then you look at the breadth of 0:06:39.320 --> 0:06:42.240 their offering. And again remember they own the world's Internet data, 0:06:42.600 --> 0:06:45.640 so you need data users in capital for AI to work, 0:06:45.920 --> 0:06:50.160 and they have all of those almost better than Meta, Microsoft, 0:06:50.320 --> 0:06:53.080 many of the others. They have more data on anything 0:06:54.000 --> 0:06:55.800 in the world than anyone. 0:06:56.120 --> 0:06:58.920 So I think they're proving that this engine's working. 0:06:59.560 --> 0:07:03.000 The body didn't look great, you know, they're upgrading the body, 0:07:03.120 --> 0:07:05.320 but the engine look is really really good. 0:07:05.440 --> 0:07:08.800 But what's so interesting is clearly Microsoft is still working. 0:07:08.800 --> 0:07:10.960 When you're looking at asure growth of thirty nine percent, 0:07:11.320 --> 0:07:13.360 that was better than the market I anticipated. Sure it 0:07:13.400 --> 0:07:15.760 might not be much of a growth uplift, but what 0:07:15.840 --> 0:07:19.040 was it? What was the fly in the ointment for Microsoft? 0:07:19.040 --> 0:07:22.000 Where Aimyhood again is saying, my issue is supply, not demand. 0:07:23.760 --> 0:07:25.920 I don't understand the market because they just put up 0:07:25.920 --> 0:07:29.000 over fifty percent RPO backlog growth and one hundred and 0:07:29.040 --> 0:07:31.680 ten one hundred eleven percent commercial bookings. 0:07:32.120 --> 0:07:33.520 Those numbers are insane, and that. 0:07:33.400 --> 0:07:36.520 Didn't even include opening eyes two hundred and fifty billion 0:07:36.560 --> 0:07:40.600 incremental dollars. So I think the market's got this wrong honestly, 0:07:41.120 --> 0:07:42.960 that you got to look at the backlog. The backlog 0:07:43.040 --> 0:07:48.480 is leaning indicator of health. The reported AZURE number does 0:07:48.520 --> 0:07:51.640 not matter. When you're putting those backlog numbers up, that 0:07:51.760 --> 0:07:55.560 tells you their capacity constrained. You can't book that kind 0:07:55.600 --> 0:07:59.320 of revenue and not take it to Azure. And the 0:07:59.360 --> 0:08:04.800 differential is they just can't get the capacity up right now. 0:08:05.320 --> 0:08:09.600 But their customers want to spend, and their customers are 0:08:09.640 --> 0:08:13.000 spending and they know that what Microsoft has. So I 0:08:13.000 --> 0:08:16.440 think this is a common pattern where you're seeing massive 0:08:16.440 --> 0:08:21.560 backlog growth commitments to AI from their customers, but Microsoft 0:08:21.920 --> 0:08:28.600 can't literally physically provision it fast enough. And when we 0:08:28.640 --> 0:08:31.840 talk to Microsoft offline, like the Azure number would be 0:08:31.960 --> 0:08:34.680 way higher if we now have the capacity constraints. So 0:08:34.720 --> 0:08:38.960 this is not a demand issue, This isn't a competitive issue. 0:08:38.960 --> 0:08:41.600 This is an issue that the industry is facing right 0:08:41.640 --> 0:08:44.560 now across the board is they can't get enough of 0:08:44.600 --> 0:08:46.960 it to their customers. That number of have been way 0:08:47.000 --> 0:08:50.640 higher because you can't describe the math of the backlog 0:08:50.679 --> 0:08:53.640 being so high and Azure where it's at. 0:08:53.679 --> 0:08:56.080 So I think again, we look at it. 0:08:56.080 --> 0:08:59.719 It's important Wall Street cares like Wall Street should care 0:08:59.760 --> 0:09:03.960 more about backlog and bookings. This is again what all 0:09:04.000 --> 0:09:07.080 Oracle trades on. They don't care about revenue. Why does 0:09:07.120 --> 0:09:09.839 everyone just care about revenue now? So I think again, 0:09:09.920 --> 0:09:11.080 I think the Street's got it wrong. 0:09:11.600 --> 0:09:14.360 Streets got it wrong. Brent phil and Jeffrey's putting it right. 0:09:14.679 --> 0:09:17.040 We thank you so much. But coming up more about earnings. 0:09:17.120 --> 0:09:20.040 Roblock CEO David Zuki joining us to discuss the company's 0:09:20.160 --> 0:09:22.760 numbers daily active users for the gaming platform and toping 0:09:22.800 --> 0:09:24.480 one hundred and fifty one million ED. 0:09:25.600 --> 0:09:26.200 Let's look at Core. 0:09:26.280 --> 0:09:30.359 We've shares down more than six percent. Core Scientific investors 0:09:30.400 --> 0:09:34.360 have voted no on Core We've acquiring the company. You'll 0:09:34.400 --> 0:09:37.280 remember that Core. We've tried to buy Core Scientific in 0:09:37.360 --> 0:09:40.199 July nine billion dollars and the advisory firm said that 0:09:40.280 --> 0:09:44.840 undervalued it. BI reacting saying it actually won't impact operations 0:09:44.880 --> 0:09:47.640 of Coreweed but another headline on the terminal. As soon 0:09:47.640 --> 0:09:50.600 as that vote was decided, Core weave to buy Marimo 0:09:50.840 --> 0:09:53.760 terms not discos, maybe a sense that it's moving on 0:09:54.160 --> 0:09:56.240 very quickly. We'll have more when we can. This is 0:09:56.280 --> 0:09:57.160 Beningberg Tech. 0:09:59.280 --> 0:10:02.560 Grow regard ninety nine Nights in the Forest, still a 0:10:02.600 --> 0:10:06.280 brain rot three games, propelling Roadblocks to its highest level 0:10:06.320 --> 0:10:09.640 of daily active users, a company also posting nearly two 0:10:09.640 --> 0:10:12.400 billion dollars in bookings in the third quarter. Still shares 0:10:12.440 --> 0:10:15.160 of the company trading lower after the earnings. Let's talk 0:10:15.160 --> 0:10:17.640 all through all of this with Dave Zuki foundacy of 0:10:17.720 --> 0:10:22.400 Roadblocks and Dave this growth, this is real playing commitment 0:10:22.559 --> 0:10:24.600 comes at a cost, an infrastructure cost, and we see 0:10:24.640 --> 0:10:27.040 costs go up because of safety that you're enacting. 0:10:26.720 --> 0:10:28.280 But also the cloud compute. 0:10:28.480 --> 0:10:30.600 How do you start to monetize to make up for 0:10:30.640 --> 0:10:31.839 some of those costs. 0:10:32.840 --> 0:10:35.400 Yeah, thanks for noting the amazing quarter we just had. 0:10:35.480 --> 0:10:38.920 Both bookings growth was up seventy percent year on year 0:10:38.920 --> 0:10:41.880 at one point nine billion, and as you noted, our 0:10:42.000 --> 0:10:46.000 daily active users passed one hundred and fifty million, which 0:10:46.040 --> 0:10:49.040 is up seventy percent year on year. In addition to 0:10:49.080 --> 0:10:52.880 those three games you mentioned, we had seven games on 0:10:53.000 --> 0:10:56.680 Roadblocks in the last quarter, past ten million daily active 0:10:56.800 --> 0:11:01.640 users and a really healthy content ecosystem. Five of those 0:11:01.720 --> 0:11:06.800 seven experiences were created in the last year. We've hit 0:11:06.840 --> 0:11:10.280 some really peak numbers. We had forty five million concurrent 0:11:10.320 --> 0:11:13.160 players all at the same time. What we said on 0:11:13.200 --> 0:11:15.760 the earnings call is with all of this growth, which 0:11:15.840 --> 0:11:20.880 is cumulatively averaging thirty seven percent over the last two years, 0:11:21.200 --> 0:11:23.680 we are going to be spending on infra. What we 0:11:23.800 --> 0:11:29.760 said is the continued decreases in costs for infra, we 0:11:29.800 --> 0:11:32.520 may slow that down a bit as we spend, But 0:11:33.120 --> 0:11:35.680 the final thing I want to generate is the cash 0:11:35.720 --> 0:11:39.120 flow that we generated on the platform. We generated over 0:11:39.200 --> 0:11:41.640 four hundred and forty million of free cash flow in 0:11:41.720 --> 0:11:42.440 Q four. 0:11:43.800 --> 0:11:44.040 DAVE. 0:11:44.240 --> 0:11:46.800 Looking forward, then, how are you managing out some of 0:11:46.840 --> 0:11:51.160 the technology plays that you made age verification technology in 0:11:51.200 --> 0:11:54.480 a way that doesn't impact or slow the growth of 0:11:54.520 --> 0:11:56.479 both active users in the bookings. 0:11:57.200 --> 0:12:01.319 We've made a commitment a while by to what we 0:12:01.360 --> 0:12:05.760 believe will be the cold standard for safety on platforms 0:12:05.840 --> 0:12:09.640 like Roadblocks and throughout the industry. With new advances in AI, 0:12:09.880 --> 0:12:13.640 we're going to use facial age estimation to estimate the 0:12:13.679 --> 0:12:17.440 age of everyone on our platform. And in addition to 0:12:17.679 --> 0:12:21.160 the text filtering we do the critical harms monitoring the 0:12:21.200 --> 0:12:24.160 prevention of any image sharing. We're going to use that 0:12:24.200 --> 0:12:27.680 to help gate who communicates and who they communicate with. 0:12:28.280 --> 0:12:31.679 I was just in an executive staff meeting on Tuesday 0:12:31.760 --> 0:12:35.679 playing with the role out of this product. It's really 0:12:35.760 --> 0:12:38.600 elegant and we of course want to highlight there may 0:12:38.640 --> 0:12:41.640 be some friction, but I'm really optimistic this is the 0:12:41.760 --> 0:12:45.520 long term good play for Roadblocks, which is really establishing 0:12:45.679 --> 0:12:48.280 the standard of how we believe safety and civility is 0:12:48.360 --> 0:12:49.839 going to run in the future. 0:12:49.960 --> 0:12:52.120 And that your CFO made the point that's going to 0:12:52.160 --> 0:12:54.600 have long term value for shareholders. You make it again, Dave, 0:12:54.840 --> 0:12:56.920 talk to us there for about the new technology, not 0:12:57.080 --> 0:12:59.959 just in safety, but also in how you build gate 0:13:00.200 --> 0:13:03.040 and high fidelity feeling of a game. But some of 0:13:03.080 --> 0:13:04.840 these big winners that we've had, we just them at 0:13:04.840 --> 0:13:08.320 the top. They are kind of more old school feeling 0:13:08.320 --> 0:13:11.560 in many ways, but they're the ones breaking records, grow 0:13:11.559 --> 0:13:13.319 a garden, more classic and blockie. 0:13:13.400 --> 0:13:14.959 How do you compromise on that. 0:13:16.040 --> 0:13:18.760 We've highlighted our vision of getting the ten percent of 0:13:18.840 --> 0:13:22.520 all the global gaming content market running on roadblocks. In 0:13:22.559 --> 0:13:25.600 this quarter we pass three percent, so there's a lot 0:13:25.600 --> 0:13:28.360 of room to go. We have an enormous amount of 0:13:28.400 --> 0:13:33.400 new technology coming to support more diverse experiences, to support 0:13:33.440 --> 0:13:37.920 different types of avatars, to support competitive gaming and genres 0:13:38.000 --> 0:13:42.000 like racing or sports, to support role playing games and 0:13:42.080 --> 0:13:44.600 other types. And we really do have a vision for 0:13:44.720 --> 0:13:48.960 genre expansion, but in a really future looking way, and 0:13:49.000 --> 0:13:52.839 that when creators make experiences on roadblocks, they run well 0:13:52.880 --> 0:13:55.880 either on low end Android devices like a two gigabyte 0:13:55.920 --> 0:13:59.559 Android phone, or on high end gaming piecs and they 0:13:59.720 --> 0:14:04.240 run around the world. So we're optimistic. With the new technology, 0:14:04.280 --> 0:14:08.480 our economics and discovery, we're going to see a diversification 0:14:09.280 --> 0:14:13.040 of the types of experiences we see on our platform. 0:14:13.520 --> 0:14:16.480 Dave, you want ten percent of the gaming content market? 0:14:16.640 --> 0:14:20.000 That changed in the quarter. I saw layoffs at Amazon 0:14:20.000 --> 0:14:24.320 and Microsoft's gaming divisions. Electronic Arts elected to go private. 0:14:24.920 --> 0:14:28.000 The big publicly traded peer that you have private with 0:14:28.040 --> 0:14:32.120 the saudis. React with your interpretation of what that signals 0:14:32.120 --> 0:14:35.080 for the market you're trying to grow in well. 0:14:35.120 --> 0:14:38.200 People estimate the global gaming market somewhere between one eighty 0:14:38.240 --> 0:14:42.600 and two hundred billion. What we've seen on Roadblocks is 0:14:43.040 --> 0:14:47.320 really a future forward optimistic look at gaming. We've seen 0:14:47.360 --> 0:14:51.840 new types of genres given the Roadblocks platform, the ability 0:14:51.880 --> 0:14:54.480 to play with friends on different devices. 0:14:55.320 --> 0:14:55.480 You know. 0:14:55.560 --> 0:14:58.760 Addressed to Impress last year was a whole new type 0:14:58.840 --> 0:15:03.360 of experience. People competing in a fashion show grow a garden. 0:15:03.680 --> 0:15:07.920 I'm really proud of because hitting those top numbers, making 0:15:07.960 --> 0:15:11.680 new records for over twenty million. Concurrence is literally a 0:15:11.720 --> 0:15:15.280 game you can play either while you're there or when 0:15:15.280 --> 0:15:18.840 you're not there. Your garden keeps growing when you're not playing. 0:15:18.880 --> 0:15:21.120 So I think the way to think about this is 0:15:21.560 --> 0:15:24.440 not just protecting a bunst the history of gaming, but 0:15:24.760 --> 0:15:27.160 looking at whole new types of games that are going 0:15:27.240 --> 0:15:30.880 to be built on platforms like Roadblocks and accelerated with 0:15:31.000 --> 0:15:34.440 AI as every game starts to have access to AI 0:15:34.560 --> 0:15:34.960 as well. 0:15:36.480 --> 0:15:39.920 David Zuoki, Roadblock CEO, thank you very much. Let's stick 0:15:39.920 --> 0:15:42.360 with earnings in tech. Comcast was also out before the 0:15:42.360 --> 0:15:45.600 bell this morning, the company managing to slow the tide 0:15:45.720 --> 0:15:49.400 of broadbanding cable TV customer defections in the third quarter 0:15:49.480 --> 0:15:52.000 with help from an Internet price lock guarantee and some 0:15:52.040 --> 0:15:54.920 bundle plans. Let's get out to Bloomberg's entertainment reporter Kelsey 0:15:54.960 --> 0:15:59.080 Griffiths and DC give us the need to know on Comcast. 0:15:59.680 --> 0:16:04.920 Ist tenth straight quarter of broadband losses. So the company 0:16:05.000 --> 0:16:07.560 came into this quarter knowing that they had to do 0:16:07.600 --> 0:16:10.200 something to start stemming this tide. Like you just said, 0:16:10.800 --> 0:16:14.920 they did in fact succeed in kind of slowing some 0:16:14.960 --> 0:16:20.120 of those losses, even though those numbers weren't positive. Necessarily, 0:16:20.560 --> 0:16:24.000 they were losing customers at a slower rate than usual, 0:16:24.120 --> 0:16:26.240 and so the executives were saying that some of the 0:16:26.320 --> 0:16:30.600 changes they've made over this year earlier seemed to be working. 0:16:30.720 --> 0:16:32.680 Seeming working, but the share price is still lower. 0:16:32.720 --> 0:16:34.920 And what's interesting maybe in some of the analyst notes 0:16:34.960 --> 0:16:38.120 there is a concern that maybe they'll spend more, particularly 0:16:38.120 --> 0:16:40.520 when they're thinking making a bid for parts of Warner Brothers. 0:16:40.600 --> 0:16:44.200 What do you make of that, Kelsey, that's right. 0:16:44.640 --> 0:16:48.600 Warner Brothers is one piece of the strategy that Comcasts 0:16:48.600 --> 0:16:52.280 said they're looking at, although they didn't express a really 0:16:52.440 --> 0:16:55.360 high level of interest. They said, when something like this 0:16:55.400 --> 0:16:57.480 in our industry comes on the market, it is something 0:16:57.480 --> 0:16:59.560 that we have to take a look at. But look, 0:16:59.560 --> 0:17:02.680 we're good with our content strategy even without M and A. 0:17:03.080 --> 0:17:06.520 They just succeeded in Laurene Taylor Sheridan over from Paramount 0:17:06.520 --> 0:17:09.320 Plus and he is going to be a really big 0:17:09.400 --> 0:17:12.480 part of that content links get going forward for them. 0:17:12.800 --> 0:17:15.640 They also have NBA TV rights and those are things 0:17:15.640 --> 0:17:17.640 that they're really excited about in the nearer term. 0:17:18.560 --> 0:17:20.200 Great roundup, Kelsey Griffiths. 0:17:20.200 --> 0:17:23.159 We appreciate you on Comcast, and let's just stick with 0:17:23.200 --> 0:17:25.840 the Warner Brothers story a little bit more. Because CEO 0:17:26.080 --> 0:17:28.919 David Sazov said that the board would need a higher 0:17:28.920 --> 0:17:31.480 bid to justify a sale at the company. He said 0:17:31.480 --> 0:17:34.280 those comments during a town hall meeting for employees yesterday, 0:17:34.320 --> 0:17:37.480 according to sources. Now Sazadov also told the staff that 0:17:37.520 --> 0:17:39.240 the board had rejected three. 0:17:39.000 --> 0:17:41.360 Offers from Paramount Skydin send. 0:17:42.640 --> 0:17:43.359 Okay coming up. 0:17:43.400 --> 0:17:47.720 President Trump and China Jijingping attempt to ease trade tensions 0:17:47.760 --> 0:17:50.359 inside their high stakes talks on the future of the 0:17:50.400 --> 0:17:52.879 global supply chain. We have all the details. Next, this 0:17:52.920 --> 0:18:00.440 is bloom Bag Tech. M H. 0:18:13.520 --> 0:18:17.120 We did discuss chips and he's going to be They're 0:18:17.119 --> 0:18:20.720 going to be talking to the video and others about 0:18:21.240 --> 0:18:23.320 taking chips. We're not talking about the black one that 0:18:23.480 --> 0:18:26.840 just came out yesterday, but. 0:18:28.600 --> 0:18:30.600 A lot of chips, you know, a lot of the chips, 0:18:30.800 --> 0:18:31.760 and that's good for us. 0:18:33.720 --> 0:18:36.320 I was President Trump speaking to reporters on board Air 0:18:36.359 --> 0:18:40.840 Force one after meeting with Chinese President Jijingping, saying chips 0:18:40.840 --> 0:18:44.440 were in discussion, but in Nvidia's latest blackwell was left 0:18:44.480 --> 0:18:45.119 off the table. 0:18:45.400 --> 0:18:45.880 Blueboks. 0:18:45.880 --> 0:18:48.240 Tyler Kendall has been traveling with the President and joins 0:18:48.280 --> 0:18:49.199 us from South Korea. 0:18:49.480 --> 0:18:50.760 What is the absolute latest? 0:18:50.800 --> 0:18:52.760 What do we need to know about that came out 0:18:52.760 --> 0:18:54.800 of those talks between Trump and Jijingping. 0:18:55.320 --> 0:18:58.000 Yeah, hey, Ed, Well, when it comes to in video chips, 0:18:58.000 --> 0:19:01.840 it certainly dampens a speculation that Washington would go on 0:19:01.880 --> 0:19:04.919 to approve the sale of such chips to China. President 0:19:04.920 --> 0:19:07.200 Trump went on in that gaggle on Air Force one 0:19:07.560 --> 0:19:10.400 to be asked specifically whether or not anything was brought 0:19:10.440 --> 0:19:13.159 up about the potential for a downgraded version of the 0:19:13.160 --> 0:19:15.919 Blackwell processor. He said that it was not, but that 0:19:16.040 --> 0:19:19.919 ultimately in Vidia the company itself, is going to continue 0:19:20.119 --> 0:19:23.119 direct talks with Washington, as you well know, and Vidia 0:19:23.160 --> 0:19:26.240 has been trying to regain market access in China since 0:19:26.280 --> 0:19:28.919 twenty twenty two, after going from a ninety five percent 0:19:28.960 --> 0:19:31.679 market share peak down to zero. But I have to 0:19:31.680 --> 0:19:34.359 say this was welcome news in Washington this morning for 0:19:34.440 --> 0:19:38.119 those defense hawks who have previously advocated against such sales 0:19:38.160 --> 0:19:41.040 over national security concerns, Which brings us to the broader 0:19:41.080 --> 0:19:44.080 issue of the general trade talks, because while we are 0:19:44.119 --> 0:19:47.480 getting this easing intentions, our own analysts at Bloomberg Economics 0:19:47.480 --> 0:19:51.119 say those more fundamental issues, including national security, were not 0:19:51.240 --> 0:19:54.600 ultimately addressed. But Ed and Caroline, of course, a welcome 0:19:54.640 --> 0:19:56.560 news that we are seeing what appears to be at 0:19:56.640 --> 0:19:59.400 least a year extension when it comes to the broader 0:19:59.440 --> 0:20:00.000 trade troops. 0:20:00.040 --> 0:20:03.119 Yes, blueboth, Tyler Kendall, thank you so much. That's the 0:20:03.160 --> 0:20:05.080 latest from South Korea. Let's get more news, Carol. 0:20:05.280 --> 0:20:07.920 Yeah, it's time now aired for talking tech and first up. 0:20:08.000 --> 0:20:10.119 Open Ai is said to be preparing to file for 0:20:10.160 --> 0:20:12.960 an IPO as soon as next year that could value 0:20:12.960 --> 0:20:16.160 the company at one trillion dollars. But it's all according 0:20:16.160 --> 0:20:18.119 to a report from Reiters. The company is said to 0:20:18.119 --> 0:20:21.879 be considering finding the paperwork with regulators soon as second 0:20:21.880 --> 0:20:25.879 half of twenty twenty six plus. Microsoft says its cloud 0:20:25.920 --> 0:20:29.600 services are recovering from an outage that disrupted workplace software 0:20:29.600 --> 0:20:32.960 products and impacted several companies. For the outage prevented people 0:20:33.000 --> 0:20:36.000 from checking into Alaska Airline flights, for example, and disrupted 0:20:36.000 --> 0:20:40.880 features in Microsoft's own copilot AI. We are ex consultants 0:20:40.880 --> 0:20:44.760 from McKinsey, from Bain, from BCG are recently contracted to 0:20:44.880 --> 0:20:49.200 train AI models on entry level consulting work for open Ai. 0:20:49.280 --> 0:20:52.320 Now bluemeggers learn that our gentum project is run by 0:20:52.320 --> 0:20:55.520 the same third party firm using ex bankers to train 0:20:55.600 --> 0:20:57.600 open ai on financial. 0:20:57.000 --> 0:20:59.560 Models, said Okay coming out. 0:20:59.600 --> 0:21:02.240 We have more magnificent seven earnings coming up after the 0:21:02.240 --> 0:21:04.639 bell today with Apple and Amazon, and we're going to 0:21:04.680 --> 0:21:07.800 have what to expect from those giants next. Apple up 0:21:08.000 --> 0:21:11.119 treading water three ten percent, Amazon down nine tens to 0:21:11.160 --> 0:21:13.520 one percent. Maybe there's more read through there from the 0:21:13.640 --> 0:21:16.080