WEBVTT - OpenAI Linked Stocks Fall on Report It Missed Targets 0:00:02.520 --> 0:00:12.920 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.920 --> 0:00:16.760 from coast to coast with Caroline Hyde in New York 0:00:17.040 --> 0:00:19.439 and Eva low in sentrancs. 0:00:18.920 --> 0:00:24.439 Go this is Bloomberg Tech coming up. Open Ai links 0:00:24.480 --> 0:00:27.120 stock slump after the Wall Street Journal reported that the 0:00:27.160 --> 0:00:30.720 company failed to meet its own sales and user targets. 0:00:30.840 --> 0:00:33.280 Plus, a jury has been selected for the trial between 0:00:33.280 --> 0:00:36.600 some altman and musk, who claims open ai abandoned its 0:00:36.640 --> 0:00:37.479 founding mission. 0:00:37.920 --> 0:00:39.200 Arguments begin today. 0:00:39.640 --> 0:00:42.599 And Late night host Jimmy Kimmel has defended comments he 0:00:42.640 --> 0:00:45.680 made that prompted President Trump to call for him to 0:00:45.720 --> 0:00:46.160 be fired. 0:00:46.159 --> 0:00:47.919 We head to Hollywood for the latest. 0:00:48.120 --> 0:00:51.040 First, we head to these markets and they are under pressure. Yes, 0:00:51.120 --> 0:00:53.559 geopolitical tension is still loom large, and we think a 0:00:53.560 --> 0:00:56.240 lot about Iran and the straight orfor moves, But we 0:00:56.280 --> 0:00:58.600 also think about what's currently happening in the cell of 0:00:58.680 --> 0:01:01.880 related to techniques. Quarter percent on the Nasdaq, one hundred 0:01:02.200 --> 0:01:04.400 worse day in a month. Why you're going to get 0:01:04.440 --> 0:01:06.320 to those details. It's all open ai related. 0:01:07.200 --> 0:01:08.320 Yep. Look at this board. 0:01:08.360 --> 0:01:10.920 These are the soft bank US listed shares that have 0:01:11.400 --> 0:01:13.839 tens of billions of dollars of exposure to open ai 0:01:14.000 --> 0:01:19.160 Core Weave clear Neocloud exposure to open ai Oracle, the 0:01:19.319 --> 0:01:23.120 primary infrastructure partner for open Ai. The journal reporting that 0:01:23.400 --> 0:01:26.240 open Ai missed its own metrics financial ones for twenty 0:01:26.280 --> 0:01:30.840 twenty five, and contemporaneously Caro the user number is not 0:01:30.880 --> 0:01:31.880 where they want it to be. 0:01:32.920 --> 0:01:34.920 It's not and this is all reporting for the Wall 0:01:34.920 --> 0:01:37.319 Street Journal. We want to dig into that. Bloomberg Tech 0:01:37.440 --> 0:01:41.759 editor Seth Figgerman, what is the biggest anxiety for investors? 0:01:41.880 --> 0:01:43.959 Is it that they're not yet at a billion users 0:01:44.000 --> 0:01:46.480 and have been hoped by investors thus far? Is it 0:01:46.520 --> 0:01:49.200 more the revenues that aren't hitting internal targets? 0:01:49.200 --> 0:01:50.400 What is it about this reporting? 0:01:51.040 --> 0:01:53.880 I'd say probably more of the revenue sag of things. Ultimately, 0:01:54.000 --> 0:01:56.160 this company is still growing pretty fast, but if they 0:01:56.200 --> 0:01:58.840 fall short of their own expectations, even by a margas 0:01:58.880 --> 0:02:01.919 de mal in my affair to the wider AI ecosystem. 0:02:01.960 --> 0:02:04.920 As a reminder, as we've reported, Opening has increasingly set 0:02:04.960 --> 0:02:07.160 itself up at the center of this complex web of 0:02:07.200 --> 0:02:11.600 investments from ship suppliers and cloud providers, and if it 0:02:11.639 --> 0:02:14.120 has to reduce in any form it's commitment to the 0:02:14.160 --> 0:02:16.680 infrastructure spending. It could have ripple effects for the wider 0:02:16.760 --> 0:02:17.840 AI landscape. 0:02:18.240 --> 0:02:20.000 I'm just going to go through what the journal reported. 0:02:20.080 --> 0:02:23.400 Chat GPT missed its annual revenue target in twenty five, 0:02:23.800 --> 0:02:26.679 it missed its internal full year revenue goal, and then 0:02:26.720 --> 0:02:30.240 for twenty six, monthly revenue targets are behind. And the 0:02:30.240 --> 0:02:34.600 big one probably is the billion figure for Chat GPT uses. 0:02:35.360 --> 0:02:37.920 Again all Wall Street Journal reporting, and I note that 0:02:37.960 --> 0:02:41.040 in that story there is a pretty strong statement from 0:02:41.080 --> 0:02:45.560 both Sarah Fryer, the CFO, and COO Sam Oltman. What's 0:02:45.600 --> 0:02:47.880 the logic here of why we see all these stocks react. 0:02:48.000 --> 0:02:49.399 It's just their partners or what? 0:02:49.840 --> 0:02:52.480 Yeah, I think that their partners and ultimately if Opening 0:02:52.560 --> 0:02:55.639 I has to rethink hundreds of billions of dollars plans 0:02:55.639 --> 0:02:57.919 to spend in the next five to ten years on 0:02:58.080 --> 0:03:00.120 DIGA centers and ships that could have ripple effects for 0:03:00.160 --> 0:03:01.760 a lot of these partners. Now, I will say you 0:03:01.880 --> 0:03:05.040 alluded to some pushback here. We're also hearing directly from 0:03:05.080 --> 0:03:07.840 Opening eyeing a statement that they're saying their business is 0:03:07.880 --> 0:03:11.000 firing on all cylinders quote end quote right now with 0:03:11.240 --> 0:03:15.200 strong growth in their nascent advertising efforts on the consumer side, 0:03:15.320 --> 0:03:17.160 as well as with their enterprise product. Now they're not 0:03:17.200 --> 0:03:20.919 spelling out their financial details, neither is the Wall Street Journal. 0:03:21.600 --> 0:03:24.200 All of this so puts the question of the IPO 0:03:24.280 --> 0:03:26.880 in the balance as well, and just the rush to 0:03:26.919 --> 0:03:30.080 be able to raise more funds publicly, does that matter 0:03:30.160 --> 0:03:33.760 in this context, particularly if we are seeing that it 0:03:33.880 --> 0:03:36.200 questions whether they're going to be able to finance that 0:03:36.280 --> 0:03:38.000 going forward for more compute. 0:03:37.600 --> 0:03:39.800 I think it certainly matters in probably a couple different ways. One, 0:03:39.880 --> 0:03:41.480 if their business is not where they want it to be, 0:03:41.600 --> 0:03:43.520 that's going to add pressure for them to maybe delay 0:03:43.520 --> 0:03:46.080 a little bit longer before going public. But Two, if 0:03:46.080 --> 0:03:48.360 the question here is why are they not where they 0:03:48.400 --> 0:03:50.320 want to be, it seems likely that's because of the 0:03:50.360 --> 0:03:52.920 pressure they're facing from Google, an anthropic the lagger of 0:03:52.920 --> 0:03:55.880 which also wants to go public as soon as this year. 0:03:56.040 --> 0:03:59.200 So if it's facing off against possibly as sendan rival, 0:03:59.240 --> 0:04:00.920 that's going to make it even that much harder to 0:04:01.080 --> 0:04:01.840 pitch Wall Street. 0:04:02.720 --> 0:04:05.000 So for part of the Open AI story, and in 0:04:05.040 --> 0:04:07.680 the Wall Street Journal's reporting and others reporting, is this 0:04:07.840 --> 0:04:11.800 concern that Sarah Fryer has revenues aren't growing at the 0:04:11.840 --> 0:04:14.320 same pace that justifies all the spending, and when you're 0:04:14.320 --> 0:04:16.640 going to IPO, that's a bit worrying if you're going 0:04:16.680 --> 0:04:18.359 to put down in front of investors, what do we 0:04:18.440 --> 0:04:19.920 know in that standpoint? 0:04:20.000 --> 0:04:21.920 Yeah, I mean, look what this company is publicly said 0:04:21.960 --> 0:04:23.960 as I think last year, they were around thirteen billion 0:04:24.000 --> 0:04:26.640 dollars in revenue. As of February, after they announced the 0:04:26.680 --> 0:04:30.040 mammoth funding round, they said that they were generating two 0:04:30.080 --> 0:04:31.960 billion dollars in revenue a month, So you can do 0:04:32.600 --> 0:04:34.840 the math there. It's still a fast growing company. But 0:04:34.960 --> 0:04:37.920 in order to justify six hundred billion dollars and infra spending, 0:04:37.920 --> 0:04:40.279 which is what they've said, you need to be growing 0:04:40.320 --> 0:04:42.040 up bit faster than that. And Sam Alman has previously 0:04:42.120 --> 0:04:44.880 sounded quite bullish on the prospects to grow this business 0:04:44.960 --> 0:04:47.240 quite fast up to one hundred billion dollars in revenue 0:04:47.240 --> 0:04:49.200 in the coming years. If that's going to happen at 0:04:49.200 --> 0:04:50.760 a slower pace, they might need to rethink some of 0:04:50.760 --> 0:04:52.200 their data center build out plans. 0:04:52.920 --> 0:04:56.320 Bloomberg Seth Fighman, thank you, Bloomberg Intelligence out with the 0:04:56.360 --> 0:04:59.280 React Senior tech handlist, and rag Rana writing that if 0:04:59.360 --> 0:05:02.200 open ai s sales were to miss as reported by 0:05:02.200 --> 0:05:04.719 the Wall Street Journal, it could have an impact across 0:05:04.720 --> 0:05:09.200 the entire AI infrastructure ecosystem, and a rag joins us, Now, 0:05:09.440 --> 0:05:12.360 what's so interesting about this, Like the market's response is, oh, 0:05:12.560 --> 0:05:15.599 we actually now do need evidence of demand. Right, we 0:05:15.680 --> 0:05:18.640 know about the infrastructure spend that data we've got. What 0:05:18.680 --> 0:05:20.720 we don't have is what's coming out the other side. 0:05:20.960 --> 0:05:22.080 How are you computing that? 0:05:23.279 --> 0:05:26.440 So when we look at the entire cloud infrastructure demand, 0:05:26.520 --> 0:05:29.520 I mean that still remains very solid. Whether that's transferred 0:05:29.600 --> 0:05:32.280 from open ai to Entropic. That is the big story 0:05:32.279 --> 0:05:35.080 that we are discussing here is whether this promise that 0:05:35.120 --> 0:05:38.960 openei has made to Oracle, to Amazon, to Microsoft to 0:05:39.080 --> 0:05:41.560 goal bed, you know, how good is that promise over 0:05:41.600 --> 0:05:44.159 the long term. And I think that's the contention point. 0:05:44.200 --> 0:05:47.120 But frankly, if you were to put that aside, the 0:05:47.200 --> 0:05:50.560 demand for cloud infrastructure remains extremely strong right now, and 0:05:50.640 --> 0:05:53.960 partially driven by Anthropic and all the coding tools that 0:05:54.000 --> 0:05:55.560 we have seen over the last six months. 0:05:56.360 --> 0:05:58.599 What's so interesting is cool we've come out with a 0:05:58.600 --> 0:06:02.360 statement from a spokesperson's saying all we see is more 0:06:02.400 --> 0:06:05.080 demand than there is supply when it comes to compute, 0:06:05.160 --> 0:06:07.960 right Now that exactly leans into where you see anaag 0:06:08.040 --> 0:06:11.240 So if there was one player pulling back, there's immediately 0:06:11.360 --> 0:06:12.839 enough demand to fill that supply. 0:06:13.960 --> 0:06:16.920 See for somebody like poor Vid, absolutely they can backfil 0:06:16.960 --> 0:06:19.279 it with because they have agreements with Meta, they have 0:06:19.320 --> 0:06:22.440 agreements with Microsoft. So I mean, given their scale, it's 0:06:22.480 --> 0:06:24.479 not a big deal. And I would say the same 0:06:24.520 --> 0:06:27.360 thing for both Amazon and Microsoft because they have enough 0:06:27.400 --> 0:06:31.080 backlock coming from other places. The thing is over here. 0:06:31.160 --> 0:06:34.480 Oracle is the one where open Ai has the largest commitment, 0:06:34.520 --> 0:06:37.480 which was three hundred billion dollars plus. Now this is 0:06:37.520 --> 0:06:40.520 where you would see that how will that number shape 0:06:40.560 --> 0:06:42.719 up in the coming years? You know, I would argue 0:06:42.720 --> 0:06:45.280 that even if things were really fine with open Ai 0:06:45.360 --> 0:06:48.800 and there were no changes, there could be some transfer 0:06:48.839 --> 0:06:53.160 of that demand from Oracle to potentially Amazon's web services 0:06:53.200 --> 0:06:56.719 because when open Ai and Oracle signed that deal, Amazon 0:06:56.800 --> 0:06:59.960 was not in the picture. Amazon recently got included in 0:07:00.200 --> 0:07:04.120 the pie and the opening I made one hundred billion 0:07:04.120 --> 0:07:06.960 plus commitment with them, So you know, if they're going 0:07:06.960 --> 0:07:09.640 to cut back somewhere, I think the my gut instinct 0:07:09.760 --> 0:07:11.920 is it's going to come more from Oracle than anybody else. 0:07:12.000 --> 0:07:14.000 And we see the share price reaction in Oracle today, 0:07:14.000 --> 0:07:16.320 of course along with everyone else. Ana rag Can I 0:07:16.400 --> 0:07:19.120 just go back to one area that has been reported 0:07:19.680 --> 0:07:22.440 is that open Ai had turned to its own investors saying, 0:07:22.760 --> 0:07:25.200 the reason we can stay ahead and perhaps fend off 0:07:25.240 --> 0:07:29.680 competition like an anthropic is we've got more compute. Is 0:07:29.720 --> 0:07:32.400 that a winning formula for these llms right now? 0:07:33.280 --> 0:07:36.160 So that is the traditional mindset that the more compute 0:07:36.160 --> 0:07:38.400 that you have, the better your model is going to be. 0:07:39.080 --> 0:07:41.320 So far that trick has been working in a sense, 0:07:41.400 --> 0:07:45.080 that model, that concept of uh, you know, you could 0:07:45.080 --> 0:07:48.320 say scaling laws have been working. I just don't know 0:07:48.360 --> 0:07:51.000 how that shapes up in the next iteration of model 0:07:51.440 --> 0:07:53.160 and how big of a clusters do you need to 0:07:53.160 --> 0:07:54.040 train them? 0:07:54.440 --> 0:07:56.240 And rag Rana out with the react, out with the 0:07:56.280 --> 0:07:59.880 boommeg intelligence. We so appreciate it. Let's get broader market perspective. 0:08:00.120 --> 0:08:02.920 Tiffany Wadees say with US Columbia thread Needle Investments senior 0:08:02.960 --> 0:08:06.400 portfolio manager, It's interesting how much the market reacts to 0:08:06.480 --> 0:08:11.240 this particular reporting. Is there reason to have anxiety that 0:08:11.840 --> 0:08:14.280 companies are good for the compute demand right now? 0:08:14.760 --> 0:08:15.480 I think we're going to. 0:08:15.440 --> 0:08:18.080 See that the compute demand continues to persist. There's so 0:08:18.160 --> 0:08:21.240 much demand, and it's not just from Anthropic and open Ai. 0:08:21.360 --> 0:08:23.640 It's really across the economy that we're seeing demand for 0:08:23.760 --> 0:08:26.920 more processing power. So I expect the spending is going 0:08:26.960 --> 0:08:29.680 to continue. But I get why we're seeing some of 0:08:29.680 --> 0:08:33.720 the stock reactions on a news report like this, especially 0:08:33.720 --> 0:08:35.600 across the tech in the semi space, where these stocks 0:08:35.640 --> 0:08:38.360 have been up almost forty percent over the last month, 0:08:38.440 --> 0:08:40.040 So it kind of makes sense that we're seeing them 0:08:40.040 --> 0:08:42.600 take a breather on a big bit of a negative 0:08:42.640 --> 0:08:45.200 news report. But I don't think that we're going to 0:08:45.200 --> 0:08:48.280 see that the story for infrastructure, you know, spaying demand 0:08:48.320 --> 0:08:48.840 has cracked. 0:08:49.840 --> 0:08:53.600 Tiffany, I'm right in saying that Alphabet parent of Google 0:08:53.640 --> 0:08:55.600 is one of your top holdings, one of your. 0:08:55.520 --> 0:08:56.280 Top names, right. 0:08:56.679 --> 0:09:00.480 Yes, what we've looked at is obviously the chaos in 0:09:00.520 --> 0:09:02.800 the moment, there's a big move in the session, But 0:09:02.880 --> 0:09:06.240 this is a longer term chart, and it shows that 0:09:06.440 --> 0:09:12.200 Alphabet exposed stocks have massively outperformed open Ai exposed stocks. 0:09:12.280 --> 0:09:15.040 We can get into the definition of but each but 0:09:15.120 --> 0:09:17.480 what does that chart tell you about your own thesis 0:09:17.480 --> 0:09:18.560 and conviction on Google? 0:09:19.280 --> 0:09:21.439 Yeah, I think we're seeing the divergence here, and the 0:09:21.520 --> 0:09:25.360 charts really happen according to the competitiveness of the models 0:09:25.400 --> 0:09:27.600 that have been released by both companies. Right, So, Google 0:09:27.640 --> 0:09:29.440 for a while was being perceived as a bit of 0:09:29.440 --> 0:09:32.520 a loser because their models were maybe not as good 0:09:32.520 --> 0:09:34.080 as what we were seeing come out of open Ai 0:09:34.840 --> 0:09:38.080 an anthropic and that changed last year when they released 0:09:38.080 --> 0:09:39.920 some of their newer Gemini models and then they were 0:09:39.920 --> 0:09:42.120 seen as more of a winner. And I think that 0:09:42.160 --> 0:09:45.319 caused some of that divergence and the performance between those 0:09:45.400 --> 0:09:47.720 baskets of stocks that are linked to Google and that 0:09:47.800 --> 0:09:51.520 are linked to open Ai. And certainly this continues to 0:09:51.559 --> 0:09:54.400 sort of push that narrative around how competitive are open 0:09:54.400 --> 0:09:57.280 ai models versus the competitors. 0:09:58.000 --> 0:10:01.240 Let's bring it back to today's top story. Stocks that 0:10:01.280 --> 0:10:04.160 have an association with open Ai are selling off pretty 0:10:04.200 --> 0:10:07.720 hard on the basis that the journal reported it missed 0:10:07.760 --> 0:10:11.120 prior year financial targets internal and it's still not where 0:10:11.120 --> 0:10:14.520 it wants to be on CHATGBT users. It seems like 0:10:14.800 --> 0:10:17.439 now we do need some more evidence of demand on 0:10:17.480 --> 0:10:20.319 a longer term basis. We're not just focused on the 0:10:20.640 --> 0:10:23.679 capex input. Is that where your head's at Tiffany. 0:10:24.040 --> 0:10:24.840 I think that's right. 0:10:25.280 --> 0:10:27.400 I don't think the demand overall is slowing. We're seeing 0:10:27.440 --> 0:10:30.040 amazing numbers coming out of Anthropic. They've taken up their 0:10:30.080 --> 0:10:31.920 revenue targets significantly over. 0:10:31.800 --> 0:10:34.199 The course of the year. There could be a couple. 0:10:34.000 --> 0:10:37.439 Things that are causing open ai to grow a little 0:10:37.440 --> 0:10:39.560 bit slower, and part of it could be that they're 0:10:39.559 --> 0:10:42.880 losing a bit of market share to Nthropic. Anthropic with 0:10:42.960 --> 0:10:45.680 their cloud code product, has been a massive hit so 0:10:45.760 --> 0:10:48.000 far this year. Open Ai was a couple months behind 0:10:48.000 --> 0:10:52.400 and releasing their Codex product. Their exclusivity agreement with Microsoft 0:10:52.480 --> 0:10:54.280 may also have been a bit of a headwind to 0:10:55.120 --> 0:10:59.200 enterprise adoption, but yesterday that agreement was renegotiated, so we 0:10:59.280 --> 0:11:01.400 might see some more opportunity for open Ai on some 0:11:01.480 --> 0:11:04.760 of the other cloud providers as more models become available elsewhere. 0:11:05.120 --> 0:11:07.120 So I think we might see some of those proof 0:11:07.160 --> 0:11:10.840 points around the growth given just you know, having the 0:11:10.880 --> 0:11:14.960 ability to sell this Codex product across more platforms, and 0:11:14.960 --> 0:11:17.480 also the ability to sell their models across a wider 0:11:17.840 --> 0:11:20.480 array of models across aws and then also across the 0:11:20.480 --> 0:11:21.560 Google Cloud platform. 0:11:21.720 --> 0:11:24.959 And that proof point comes in earnings. I mean we're 0:11:25.000 --> 0:11:27.320 all just holding our breath for this week to really 0:11:27.320 --> 0:11:30.560 see how much capital expenditure continues to come from these megaplays. 0:11:30.960 --> 0:11:32.840 Yeah, well, I don't think we'll know the answer Frobe 0:11:32.840 --> 0:11:35.400 and I specifically this week, but we'll certainly see if 0:11:35.440 --> 0:11:37.439 the demand continues to hold up. I think we'll be 0:11:37.480 --> 0:11:40.839 watching very closely to see the revenue growth and potentially 0:11:41.000 --> 0:11:44.080 continued sort of acceleration in revenue growth for the cloud 0:11:44.080 --> 0:11:46.520 services providers, and then also what they have to say 0:11:46.559 --> 0:11:49.240 about capex plans. It's likely that we'll continue to hear 0:11:49.280 --> 0:11:52.440 the companies say that their capacity constrained, which may lead 0:11:52.480 --> 0:11:54.760 to increased CAPEX expenditures. 0:11:54.160 --> 0:11:54.559 For the year. 0:11:55.520 --> 0:11:58.760 Tiffany, let's put the academic side of this to one side. 0:11:58.960 --> 0:12:01.880 AI is developing. AI is potentially good for the world. 0:12:01.920 --> 0:12:05.600 This is Bloomberg. We do business. So what's the metric 0:12:05.800 --> 0:12:08.280 by which we set the world order of who is 0:12:08.360 --> 0:12:14.360 leading in the field? Open AI andthropic alphabet meta XAI. 0:12:14.559 --> 0:12:16.040 How do you establish a rank? 0:12:16.760 --> 0:12:18.760 I think some of the things we're looking for, certainly 0:12:18.880 --> 0:12:21.360 user growth when we're thinking about the model providers, So 0:12:21.480 --> 0:12:24.680 at the moment, it seems like anthropic is leading. Also 0:12:24.760 --> 0:12:28.800 their focus on enterprise demand has clearly been a benefit 0:12:28.840 --> 0:12:32.400 for them versus open AI shifting demand towards enterprise or 0:12:32.440 --> 0:12:35.760 their focus towards enterprise later on. And then for the 0:12:35.800 --> 0:12:39.760 cloud providers, we're really looking for that acceleration in the 0:12:40.000 --> 0:12:43.120 revenue for the cloud businesses as an indicator that demand 0:12:43.160 --> 0:12:45.520 continues to grow and that they're starting to generate some 0:12:45.600 --> 0:12:48.480 good returns off of the spending that they are committed to. 0:12:49.960 --> 0:12:53.400 From your perspective, the hard way, you opened this up 0:12:53.400 --> 0:12:56.240 by saying, no, wonder we perhaps get a pullback because 0:12:56.280 --> 0:12:58.319 the market is run so high, But is it for 0:12:58.360 --> 0:13:02.040 the twenty twenty six hardware wins, infrastructure wins. Software is 0:13:02.080 --> 0:13:05.240 still at play and still an anxiety ridden space right now. 0:13:05.600 --> 0:13:07.040 I think we're going to see that continue to be 0:13:07.080 --> 0:13:09.240 the playbook for the year. I wouldn't be surprised if 0:13:09.240 --> 0:13:10.800 we took a little bit of a breather on some 0:13:10.840 --> 0:13:13.360 of the semiconductor stocks I mentioned. They're up almost forty 0:13:13.400 --> 0:13:16.480 percent over the last month, so potentially quite crowded here 0:13:16.600 --> 0:13:19.120 going into the rest of earnings. But I think that 0:13:19.120 --> 0:13:21.520 that narrative probably continues for the rest of the year, 0:13:21.559 --> 0:13:24.120 where we're seeing very good demand, very good backlog for 0:13:24.160 --> 0:13:27.120 all of the hardware companies, and these questions continue to 0:13:27.200 --> 0:13:29.920 linger about sort of the business model for software and 0:13:29.960 --> 0:13:30.720 SaaS companies. 0:13:31.880 --> 0:13:35.720 Tiffany Wade of Columbia, Fred deed Or, It's been a robust, timely, 0:13:36.080 --> 0:13:39.360 and very useful conversation, Thank you very much. Now coming up, 0:13:39.440 --> 0:13:42.800 President Trump is once again criticizing late night host Jimmy 0:13:42.880 --> 0:13:45.000 Kimmel and calling for him to be fired. 0:13:45.000 --> 0:13:47.000 We had the details of that next. 0:13:47.040 --> 0:13:50.480 In the meantime, President Trump is speaking in Washington where 0:13:50.520 --> 0:13:53.320 he's welcoming King Charles IID at the White House. 0:13:53.360 --> 0:13:53.880 That's listen it. 0:13:54.000 --> 0:13:57.839 We're the two great leaders met was called the Prince 0:13:57.920 --> 0:14:01.520 of Wales the very time that his Majesty the King 0:14:01.640 --> 0:14:06.000 held longer than any other individual in British history, and 0:14:06.080 --> 0:14:11.360 he held it with great pride and respect. It said 0:14:11.360 --> 0:14:16.280 that when Prime Minister Churchill first met this future King 0:14:16.440 --> 0:14:21.040 many decades ago, he was so impressed. He made the statement, 0:14:21.160 --> 0:14:26.080 he is so young to think so much and so well. 0:14:27.520 --> 0:14:35.240 And the bust of your great Prime Minister rests proudly 0:14:35.440 --> 0:14:39.120 again in the Oval Office. I'm very proud to bring 0:14:39.160 --> 0:14:44.960 it back. We brought it back throughout His Majesty's life. 0:14:45.640 --> 0:14:49.880 The world has witnessed that same thoughtfulness which first struck 0:14:49.920 --> 0:14:55.720 Britain's greatest Prime Minister. His Majesty's intellect, passion, and devotion 0:14:56.960 --> 0:15:00.120 have been a long, really a long, a blessing, blessing 0:15:00.120 --> 0:15:05.840 to the British people, but not only to his own country, 0:15:06.440 --> 0:15:10.760 but to the cherished bond between the United States and 0:15:10.840 --> 0:15:15.280 the United Kingdom. And I am very certain that it 0:15:15.400 --> 0:15:20.520 will continue that way long into the future. In a 0:15:20.520 --> 0:15:24.960 few hours, his Majesty will stand in the heart of 0:15:25.000 --> 0:15:29.360 the United States Capital as the very first British King 0:15:29.480 --> 0:15:37.360 ever to address a joint session of the United States Congress. 0:15:37.360 --> 0:15:39.280 So he's going to be addressing. 0:15:40.320 --> 0:15:40.720 Congress. 0:15:40.720 --> 0:15:41.800 Said, I'm going to be watching. 0:15:43.120 --> 0:15:45.520 I was thinking of going, but they said, I don't know. 0:15:45.920 --> 0:15:47.480 That might be a step two foot. 0:15:47.520 --> 0:15:48.320 I would love to go. 0:15:50.040 --> 0:15:52.600 It's not supposed to be protocol, but I would love 0:15:52.640 --> 0:15:57.640 to be with you. But there, the direct descendant of 0:15:57.720 --> 0:16:02.200 King George the Third will speak to the direct successor 0:16:02.520 --> 0:16:06.120 of the very body that gathered in Independence Hall and 0:16:06.240 --> 0:16:12.280 July fourth, seventeen seventy six. If John Adams and George Washington, 0:16:12.480 --> 0:16:16.680 or the King's fifth great grandfather could see that site, 0:16:16.720 --> 0:16:22.120 they might be absolutely shocked, but probably only for a moment. 0:16:23.280 --> 0:16:28.320 Surely they would be delighted that the wounds of war 0:16:28.440 --> 0:16:32.760 healed into the most cherished friendship. Think of that very, 0:16:33.000 --> 0:16:39.320 very long ago, difficult war, and yet those wounds did 0:16:39.400 --> 0:16:43.160 indeed heal into the most cherished of friendships, most cherished. 0:16:44.240 --> 0:16:47.800 They would be moved beyond words to know that the 0:16:47.840 --> 0:16:52.640 soldiers who once called each other redcoats and Yankees became 0:16:52.760 --> 0:16:55.800 the Tommys and the Gis who together saved the free 0:16:55.840 --> 0:17:00.040 world as brothers in arms and brothers in eternity. And no, no, 0:17:00.120 --> 0:17:04.800 but he fought better together than us. If they could 0:17:04.800 --> 0:17:10.200 see us today. 0:17:12.720 --> 0:17:15.680 I agree that hateful and violent rhetoric is something we 0:17:15.720 --> 0:17:18.520 should reject. I do, and I think a great place 0:17:18.560 --> 0:17:21.119 to start to dial that back would be to have 0:17:21.119 --> 0:17:26.280 a conversation with your husband about it. Because, by the way, 0:17:28.680 --> 0:17:32.119 I also should point out Donald Trump is allowed to 0:17:32.160 --> 0:17:34.600 say whatever he wants to say, as are you and 0:17:34.640 --> 0:17:37.040 as am I, as are all of us, because under 0:17:37.040 --> 0:17:40.040 the First Amendment, we have as Americans a right to 0:17:40.240 --> 0:17:40.920 free speech. 0:17:42.920 --> 0:17:45.760 Jimmy Kimmel there defending a joke he made last week 0:17:45.920 --> 0:17:48.800 that prompted President Donald Trump to call for ABC to 0:17:48.920 --> 0:17:51.439 fire the late night host. Let's get the details on 0:17:51.520 --> 0:17:56.000 this latest fight between Kimmel and the President with Lucas Shaw, 0:17:56.080 --> 0:17:59.359 who leads our screen time team out of LA and Hollywood. 0:18:00.560 --> 0:18:01.679 Where do we start, Lucas. 0:18:01.720 --> 0:18:04.640 I mean, there is a chronology to what happened over 0:18:04.680 --> 0:18:08.119 the last seven days, but the net result is that 0:18:08.160 --> 0:18:10.760 the President has called for Jimmy Kimmel to be fired. 0:18:11.720 --> 0:18:14.280 Yeah, I mean, we we've It feels a little bit 0:18:14.280 --> 0:18:17.440 like deja vu, which which Kimmel talked about on television 0:18:17.520 --> 0:18:20.240 last night. It was it was you know, six months ago, 0:18:20.359 --> 0:18:22.880 give or take. I think it was maybe seven where 0:18:23.920 --> 0:18:28.639 you know, the the chairman of the FCC, Brendan Carr, 0:18:28.840 --> 0:18:32.119 President Trump, we're calling for Kimmel to be fired by 0:18:32.280 --> 0:18:34.880 by Disney and ABC or calling on stations to come 0:18:34.920 --> 0:18:37.720 after Kimmel. But that's one of the big differences this 0:18:37.760 --> 0:18:41.120 time versus last time, is you know, Disney reacted very swiftly, 0:18:41.240 --> 0:18:43.680 in part because some of the biggest local station owners 0:18:43.720 --> 0:18:46.159 which carried the kind of ABC on their on their 0:18:46.200 --> 0:18:49.480 local networks, were asking for Kimmel to be fired or 0:18:49.520 --> 0:18:51.240 asking for him to be off the air because of 0:18:51.280 --> 0:18:53.480 comments he'd made at the time regarding Charlie Kirk. 0:18:54.400 --> 0:18:56.840 You know this time, they they aren't doing that. They've 0:18:56.840 --> 0:18:57.520 been pretty silent. 0:18:58.920 --> 0:19:03.840 Lucas in October, after that first dispute, you had an 0:19:03.880 --> 0:19:07.320 extended conversation with Kimmel on stage in Los Angeles at 0:19:07.320 --> 0:19:10.120 our screen time event. So the Bloomberg Tech audience around 0:19:10.119 --> 0:19:12.359 the world that may not understand this, right, they don't 0:19:12.400 --> 0:19:15.440 necessarily know Jimmy Kimmel. They may they don't understand why 0:19:15.440 --> 0:19:17.959 the president is so engaged over what Jimmy Kimmell has 0:19:18.000 --> 0:19:20.840 to say. Just give us the basics of his show, 0:19:21.240 --> 0:19:23.320 its reach, why this is happening. 0:19:24.040 --> 0:19:28.040 Look, Jimmy Kimmel hosts one of the three main late 0:19:28.119 --> 0:19:30.359 night talk shows on American broadcast TV. You've got the 0:19:30.400 --> 0:19:32.639 show on CBS by Stephen Colbert, which is about to 0:19:32.680 --> 0:19:34.600 go away. You've got the show on NBC hosted by 0:19:34.680 --> 0:19:37.639 Jimmy Fallon, and then Kimmel on ABC. You know, he 0:19:37.760 --> 0:19:39.840 is not known, or, at least for most of his career, 0:19:39.920 --> 0:19:42.040 was not known as a political comedian, but over the 0:19:42.119 --> 0:19:44.480 last several years has gotten far more out spoken on 0:19:44.520 --> 0:19:47.080 politics and has been a really frequent thorn in the 0:19:47.119 --> 0:19:49.680 side of President Trump. Trump does not like to get 0:19:49.680 --> 0:19:52.240 made fun of and is someone who still cares about 0:19:52.320 --> 0:19:55.920 late night television. And so they've had sort of public 0:19:56.000 --> 0:19:59.199 jousting again and again, and I think this time, you know, 0:19:59.240 --> 0:20:00.200 Disney didn't. 0:20:00.119 --> 0:20:01.560 Kimmel off the air. Kimmel was not. 0:20:02.000 --> 0:20:05.840 You know, he is finding a way to consistently tweak 0:20:05.920 --> 0:20:10.720 the president while also trying to not cross the line 0:20:10.760 --> 0:20:12.520 as he has done in the past. 0:20:12.960 --> 0:20:14.960 Kimmel did say he was sorry for what Trump the 0:20:15.000 --> 0:20:17.480 first Lady and everyone at the dinner this is a 0:20:17.520 --> 0:20:21.560 White House correspondence dinner went through. But question whether really 0:20:21.600 --> 0:20:23.520 the joke was in any way relationship to them what 0:20:23.560 --> 0:20:26.320 occurred over the weekend. That is the context here, Lucas, 0:20:26.560 --> 0:20:30.120