WEBVTT - Nvidia Dominates CES 0:00:00.800 --> 0:00:05.040 From the heart of where innovation, money and power collide 0:00:05.320 --> 0:00:10.639 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.760 --> 0:00:13.320 Caroline Hyde and Ed Ludlow. 0:00:26.880 --> 0:00:29.480 Live from New York. This is BlueBag Technology coming up. 0:00:29.640 --> 0:00:32.400 In Vidia takes center stage at CES with new hardware, 0:00:32.440 --> 0:00:35.440 software and services. For the stock falls, We sit down 0:00:35.479 --> 0:00:38.360 with it's CEO, Jas and Wang. Later this hour plus, 0:00:38.479 --> 0:00:41.800 Metad cuts its team of fact checkers, saying content moderation 0:00:41.920 --> 0:00:45.240 went quote too far, and the US places some of 0:00:45.360 --> 0:00:49.879 China's biggest tech giants on its military blacklist. But first 0:00:50.159 --> 0:00:52.839 we check in on the key stop. You have to 0:00:52.880 --> 0:00:55.800 watch today. It is the most valuable three point six 0:00:55.840 --> 0:00:58.120 trillion dollars and it dies by four and a half percent, 0:00:58.160 --> 0:01:01.720 in Vidia losing its pre market gains. We had touched 0:01:01.720 --> 0:01:03.440 a new record high and now we sink the worst 0:01:03.480 --> 0:01:06.760 days at September. Why we got a whole raft of products, 0:01:06.800 --> 0:01:09.920 whether it's hardware, software, services, whether it's the future of 0:01:10.360 --> 0:01:14.520 robotics from autonomous driving, from PCs and gaming. But is 0:01:14.560 --> 0:01:18.280 it the here and now, the Blackwell program and platform 0:01:18.360 --> 0:01:20.880 that we don't get enough detail on. Let's head out 0:01:20.920 --> 0:01:23.680 to Las Vegas. Big story, of course, is in Vidio 0:01:23.760 --> 0:01:27.039 and the CEO in veiling these products, we've got none 0:01:27.080 --> 0:01:31.039 other than a key focus on the gamer, the original 0:01:31.080 --> 0:01:33.320 customer from Jensen Wang. Have a listen. 0:01:34.480 --> 0:01:38.720 We used g force to enable artificial intelligence, and now 0:01:38.800 --> 0:01:44.480 artificial intelligence is revolutionizing g Force everyone. Today we're announcing 0:01:45.040 --> 0:01:49.840 our next generation, the RTX Blackwell family. 0:01:51.720 --> 0:01:54.880 Let's go to our gamer in residence, Ed Ludlow on 0:01:54.920 --> 0:01:58.040 the ground at CES. There was going back to their roots, 0:01:58.080 --> 0:02:00.400 the GPU for the gamer. There was so much much more, 0:02:00.400 --> 0:02:01.480 but the stock doesn't like it. 0:02:04.200 --> 0:02:07.600 Yeah, I mean, we've become so accustomed to the nvidious 0:02:07.640 --> 0:02:10.760 story of being dominant in a market for high performance 0:02:10.840 --> 0:02:14.800 GPUs that go into data centers and train AI models, 0:02:14.800 --> 0:02:18.200 foundation models. But it isn't going back to its roots story, right. 0:02:18.240 --> 0:02:21.000 It's taken the work that it's done on those AI 0:02:21.080 --> 0:02:24.320 accelerators and put them into a factor that is more 0:02:24.360 --> 0:02:28.200 relevant to the consumer developers in particular, and maybe the 0:02:28.240 --> 0:02:30.840 market this morning doesn't quite understand that story. There was 0:02:30.880 --> 0:02:34.440 plenty of big picture last night from Jensen One. Blackwell 0:02:34.480 --> 0:02:37.600 is in full production, a kind of timeline or a 0:02:37.680 --> 0:02:41.280 move into physical AI, which we'll get into robotics autonomous driving. 0:02:42.400 --> 0:02:46.160 But maybe also a conversation to be had around diversifying revenue. 0:02:46.280 --> 0:02:49.280 One hundred billion dollars of revenue is still data centerships, 0:02:49.520 --> 0:02:54.519 but increasingly those high performance graphics cards that go into 0:02:54.520 --> 0:02:57.400 the desktop laptops and something called project digits. 0:02:57.440 --> 0:02:58.840 There's a lot to discuss. 0:02:58.880 --> 0:03:01.880 That PC or on the three thousand dollars PC for 0:03:01.960 --> 0:03:04.639 AI developers. And look, there is a macro context to 0:03:04.680 --> 0:03:07.360 the share move today. We of course got some ism data, 0:03:07.400 --> 0:03:09.800 we got yield spiking higher, and no wonder some of 0:03:09.800 --> 0:03:12.400 the big tech names arounder pressure. What's interesting is some 0:03:12.440 --> 0:03:15.480 of the suppliers, for example a Micron still leading the 0:03:15.600 --> 0:03:17.960 charge here as its memory is going to be within 0:03:18.000 --> 0:03:20.519 the Nvidia offering. There was a lot to be had 0:03:20.520 --> 0:03:22.040 for some of the partnerships to play. 0:03:24.960 --> 0:03:27.520 Yeah, and as you know, Caro, it's Bloomberg's policy not 0:03:27.560 --> 0:03:29.240 to give questions an advance of interview, and there are 0:03:29.240 --> 0:03:30.320 all these Nvidia. 0:03:30.040 --> 0:03:31.520 Staff over my shoulder. 0:03:31.760 --> 0:03:35.320 But probably the one big question is the sustainability of 0:03:35.360 --> 0:03:39.840 the investment into AI. Those other chip names are pushing 0:03:39.920 --> 0:03:42.320 higher because when an investment is made into a high 0:03:42.320 --> 0:03:45.600 performance GPU, it goes in combination with the memory chips, 0:03:45.640 --> 0:03:48.960 other CPUs and all of the telematics from those other providers. 0:03:49.200 --> 0:03:52.480 That probably is the key question for Jensen, particularly in 0:03:52.520 --> 0:03:55.240 a year where things run certain economically and I see 0:03:55.240 --> 0:03:57.640 a bit of a concern about inflation in the market 0:03:57.640 --> 0:03:58.240 this morning. 0:03:58.920 --> 0:04:00.400 Jensen has a lot of world views. 0:04:00.440 --> 0:04:02.160 Whether he'll talk to me about inflation, we'll have to 0:04:02.200 --> 0:04:03.000 wait and see. 0:04:03.400 --> 0:04:06.920 At Ludlow, we cannot wait for the conversation. We'll see 0:04:06.960 --> 0:04:10.000 you a little bit later. Let's get an investor's take 0:04:10.080 --> 0:04:13.240 on the here and now lack of visibility on Blackwell 0:04:13.360 --> 0:04:16.240 or or indeed the future proofing of the business model. 0:04:16.320 --> 0:04:19.040 Cebi's Investment Advisory Services CIO Anna Rathbun. 0:04:19.400 --> 0:04:20.280 We tuned in. 0:04:20.240 --> 0:04:22.640 At six thirty Pacific time as nine thirty pm New 0:04:22.720 --> 0:04:26.160 York time. When we heard Jensen on stage, what did 0:04:26.200 --> 0:04:28.440 you make you? In line with some of these analysts 0:04:28.440 --> 0:04:30.640 who are out there saying, look not enough on the 0:04:30.680 --> 0:04:32.360 Blackwell platform. 0:04:33.279 --> 0:04:36.720 Yeah, there weren't that many details that investors were hoping for. 0:04:36.800 --> 0:04:39.159 But if you have to talk for ninety minutes plus 0:04:39.200 --> 0:04:42.080 almost two hours, I'm not sure if you can fill 0:04:42.160 --> 0:04:46.120 those that timeline with a lot of details about the business. 0:04:46.160 --> 0:04:47.680 And plus you know he's kicking. 0:04:47.480 --> 0:04:49.480 Off a conference, you sort of want to be a 0:04:49.560 --> 0:04:53.480 visionary and there is this a little slab of romanticism 0:04:53.520 --> 0:04:56.279 about AI thrown in there, So you know, I think 0:04:56.320 --> 0:04:59.320 maybe it was the wrong platform to really wait for 0:04:59.400 --> 0:05:01.919 some of those details. But I know that the excitement 0:05:02.000 --> 0:05:04.960 was built into the stock market certainly yesterday, so I 0:05:05.240 --> 0:05:08.200 can understand the disappointment. But at the same time, maybe 0:05:08.880 --> 0:05:11.320 maybe we need to wait for the earnings report. 0:05:11.480 --> 0:05:14.440 And we're currently showing a five day shot of in video, 0:05:14.440 --> 0:05:16.960 which gives us the context. It is ratherly eleven percent 0:05:17.000 --> 0:05:19.720 in January. We're maybe seeing some profit being taken off 0:05:19.720 --> 0:05:21.520 the table a little bit, hair Ona, But what did 0:05:21.560 --> 0:05:23.919 you make of what it means for its mote, for 0:05:24.000 --> 0:05:28.440 its ultimate leadership and technology? Does AMD do others even stand. 0:05:28.200 --> 0:05:28.880 A chance here? 0:05:30.040 --> 0:05:32.520 Well, you know, I think the leadership part of the 0:05:32.640 --> 0:05:37.159 visionary talk was establishing that leadership. I think in Video 0:05:37.440 --> 0:05:39.640 wants to be a leader and wants to continue to 0:05:39.680 --> 0:05:42.800 be a leader. So you're taking things like you know, 0:05:42.880 --> 0:05:46.760 self driving cars and partnership with Toyota and media attach. 0:05:46.839 --> 0:05:48.960 Those are real things that can turn into cash flow. 0:05:49.160 --> 0:05:51.640 But then you know, you have visionary things like humanoid 0:05:51.760 --> 0:05:56.120 and chance gypt turning into you know, robotics, right, turning 0:05:56.120 --> 0:05:58.440 into but robotics having a moment, right. 0:05:58.520 --> 0:05:59.840 So these are the things that. 0:05:59.800 --> 0:06:05.279 I think establish Nvidia, at least in rhetoric, as a 0:06:05.320 --> 0:06:09.039 continued leader in the space. And whether or not AMDs 0:06:09.080 --> 0:06:10.760 and other players can catch up. 0:06:11.240 --> 0:06:13.240 I do think that Nvidia still. 0:06:13.080 --> 0:06:17.239 Has a large, you know, sort of monopoly in the space. 0:06:17.520 --> 0:06:20.000 The reality of catching up to Nvidia, I think is 0:06:20.040 --> 0:06:21.400 still a difficult. 0:06:20.920 --> 0:06:24.320 Feat and that's why i'mdphaps leaning into the PC side 0:06:24.360 --> 0:06:26.600 of the business with its Dell announcement rather than trying 0:06:26.600 --> 0:06:29.520 to talk up AI accelerate as in the data center part. 0:06:30.000 --> 0:06:33.160 And to that point, are you feeling comfortable that we're 0:06:33.200 --> 0:06:37.000 seeing diversification or at least that the demand for infrastructure 0:06:37.000 --> 0:06:39.719 from a data center perspective is still there. Microsoft eighty 0:06:39.800 --> 0:06:41.640 billion that they're going to spend in twenty twenty five 0:06:41.680 --> 0:06:42.680 seems to signal. 0:06:42.400 --> 0:06:47.400 That, yeah, I don't think this AI venture is going 0:06:47.440 --> 0:06:50.159 to stop. And certainly, you know, likes of Microsoft and 0:06:50.200 --> 0:06:53.520 some of these big companies are putting big dollars into it. 0:06:53.720 --> 0:06:56.320 But we can't forget about the private side either. There 0:06:56.320 --> 0:06:58.440 are a lot of venture companies that are going to 0:06:58.480 --> 0:07:02.400 require as their develop of being applications for real businesses 0:07:02.400 --> 0:07:05.359 on the user end, they're going to have to lean 0:07:05.520 --> 0:07:09.520 into some of that infrastructure like data centers and ultimately 0:07:09.640 --> 0:07:12.600 energy too. But that's not a conversation for today. So 0:07:12.680 --> 0:07:14.640 I think I think the demand for this is not 0:07:14.720 --> 0:07:15.560 going to ease up. 0:07:16.280 --> 0:07:18.920 Can you give us your macro perspective here though as well? 0:07:19.200 --> 0:07:22.040 We were just talking how on a macro perspective, maybe 0:07:22.080 --> 0:07:24.560 we are seeing that feed into the stock weakness. Do 0:07:24.600 --> 0:07:28.120 you still your mind be thinking about inflationary pressure? Does 0:07:28.160 --> 0:07:30.600 that have any weight on a company that just is 0:07:30.640 --> 0:07:34.720 so in focus for its innovation, not just the macro headwinds. 0:07:35.880 --> 0:07:36.240 Yeah. 0:07:36.280 --> 0:07:38.760 So you know, when I think about macro headwinds such 0:07:38.760 --> 0:07:41.520 as inflation and prices, I think about who has the 0:07:41.560 --> 0:07:42.280 pricing power? 0:07:42.480 --> 0:07:44.720 Right, So if you're in Nvidia and you. 0:07:44.840 --> 0:07:49.040 Have dominance in a marketplace, you have the pricing power. 0:07:49.120 --> 0:07:52.120 So I don't think Nvidia is necessarily, you know, thinking 0:07:52.760 --> 0:07:55.600 about whether or not they have they can pass down 0:07:56.280 --> 0:07:58.920 any kind of inflation or price increases. 0:07:59.600 --> 0:08:01.400 I think it's really on the consumer end. 0:08:01.440 --> 0:08:04.000 I think it's on the end of the other max 0:08:04.040 --> 0:08:07.280 evens that need to develop the R and D aspect 0:08:07.320 --> 0:08:09.080 of it, they're going to have to worry about the 0:08:09.080 --> 0:08:09.920 inflation portion. 0:08:10.560 --> 0:08:13.520 Interesting. So for you, if you're looking at portfolio at 0:08:13.520 --> 0:08:15.360 the start of twenty twenty five and you're thinking how 0:08:15.360 --> 0:08:17.000 you're going to be changing up, do you make any 0:08:17.040 --> 0:08:19.840 key decisions of the back of the latest inflation three points? 0:08:20.680 --> 0:08:23.560 You know, our assumption has always been that it's going 0:08:23.600 --> 0:08:26.800 to be higher for longer, both on the inflation area 0:08:26.920 --> 0:08:28.960 as well as rates. 0:08:28.600 --> 0:08:30.600 So our portfolio is already positioned for it. 0:08:30.680 --> 0:08:33.360 We never really thought that inflation could go down to 0:08:33.400 --> 0:08:35.319 two percent it you know, I'm going to use the 0:08:35.320 --> 0:08:38.720 word safely without causing some kind of a slowdown in 0:08:38.760 --> 0:08:42.240 the economy. And frankly, even if it does, it's really 0:08:42.240 --> 0:08:45.160 in the cyclical areas of the economy, and I think 0:08:45.240 --> 0:08:49.360 tech has some immunity from that cyclicality simply because there's 0:08:49.400 --> 0:08:52.920 just way too much momentum going into this AI venture. 0:08:53.240 --> 0:08:56.400 And raf fan so good to have you, CIOC BIZ 0:08:56.559 --> 0:09:00.439 Investment Advisory Services stay well. Coming up, META looks back 0:09:00.440 --> 0:09:03.520 on fact checking across its social media platforms or on that. 0:09:03.600 --> 0:09:30.120 Next this is Bloomberg Technology. Yet more big news auta Meta. 0:09:30.240 --> 0:09:33.520 Today it's announced that it will end third party fact 0:09:33.559 --> 0:09:36.360 checking on its social media platforms, saying content moderation went 0:09:36.440 --> 0:09:39.200 too far, so instead, the company will allow users to 0:09:39.240 --> 0:09:42.079 comment on our post's accuracy, adopting a kind of format 0:09:42.120 --> 0:09:44.840 similar to excess community notes. This, of course follows some 0:09:45.080 --> 0:09:48.360 notable changes to its board as well. For more bloombergs 0:09:48.400 --> 0:09:51.880 Lin Duine joins us for more fascinating moves. It's moving 0:09:51.880 --> 0:09:54.800 safety and content moderation teams from California to Texas and 0:09:54.880 --> 0:09:56.800 ultimately relying on its userbase now. 0:09:57.040 --> 0:10:00.400 It is very fascinating and obviously, as you said, further 0:10:00.520 --> 0:10:05.280 aligns Meta to the x approach of content moderation and 0:10:05.320 --> 0:10:09.320 fact checking, which is to sort of crowdsource. One cannot 0:10:09.559 --> 0:10:14.080 ignore the underlying trend here. It's clear that over the 0:10:14.120 --> 0:10:19.040 past several months, Mark Zuckerberg has tried to repair, if 0:10:19.080 --> 0:10:23.520 you will, his relationship with president incoming President Donald Trump. 0:10:23.960 --> 0:10:26.880 That has been a relationship that has in the past 0:10:27.000 --> 0:10:30.560 been fairly adversarial. I don't need to remind you that 0:10:30.600 --> 0:10:35.720 at one point Trump was suspended on Meta's platforms briefly 0:10:35.800 --> 0:10:39.800 and has since been reinstated, and since then Zuckerberg has 0:10:39.840 --> 0:10:45.720 personally contributed to his inauguration fund and has made efforts, 0:10:45.800 --> 0:10:48.679 as you have said, to make appointments that would be 0:10:48.960 --> 0:10:52.760 more conducive to a relationship with the Trump administration coming in. 0:10:52.880 --> 0:10:54.720 I mean, it's interesting that this is basically the first 0:10:54.720 --> 0:10:58.160 announcement coming from Jill Kaplan, who is now the chief 0:10:58.160 --> 0:11:03.080 Global Affairs Officer as Clegg moved stage right. And we're 0:11:03.080 --> 0:11:06.280 not only getting a more right leaning global affairs officer, 0:11:06.320 --> 0:11:09.480 but we're also getting Dana White UFC coming to the 0:11:09.480 --> 0:11:10.360 board of MATA. 0:11:10.400 --> 0:11:13.760 That's right, and as you probably recall, Dana White was 0:11:13.800 --> 0:11:17.520 a very vocal Trump supporter. He was actually featured in 0:11:17.600 --> 0:11:21.560 Trump's first video on TikTok, another social media platform. So 0:11:22.840 --> 0:11:25.800 a good fit because you know, Dana White and Mark 0:11:25.880 --> 0:11:29.000 Zuckerberg have a pre existing relationship. 0:11:29.040 --> 0:11:30.720 They for a long time. 0:11:30.840 --> 0:11:34.680 Right, They share a very strong interest in the same sport. 0:11:35.480 --> 0:11:37.920 So in a lot of ways, it makes sense for 0:11:38.040 --> 0:11:40.520 Mark and for what he's trying to do with that 0:11:40.600 --> 0:11:44.480 relationship with Trump. I think that migration for the fact 0:11:44.520 --> 0:11:48.880 checking team from California to Texas, as you mentioned, is 0:11:48.880 --> 0:11:50.120 a really interesting one. 0:11:50.200 --> 0:11:50.440 Two. 0:11:50.880 --> 0:11:54.560 Whether that's politically motivated, I don't personally know, And I 0:11:54.600 --> 0:11:56.880 think that the bigger question is, like will there be 0:11:56.920 --> 0:11:59.559 a broader pullback at Meta and some of the other 0:11:59.600 --> 0:12:03.480 social media platforms with this incoming Trump administration across all 0:12:03.600 --> 0:12:06.880 content moderation, not necessarily just fact checking, but you know, 0:12:07.520 --> 0:12:09.600 will there be a pullback in like the monitoring of 0:12:09.760 --> 0:12:14.840 disturbing content CSM content. I think that's the broader question. 0:12:14.640 --> 0:12:17.120 Ask and that leads us perfectly to our next conversation. 0:12:17.200 --> 0:12:19.760 It's as if she knows it by Magic lindaan on 0:12:19.920 --> 0:12:22.400 All Things Meta and look as metapairs back its fact 0:12:22.480 --> 0:12:25.280 check is there's exclusive reporting today showing that the FBI 0:12:25.320 --> 0:12:28.120 and the Department of Homeland Security will also scale back 0:12:28.120 --> 0:12:30.920 efforts over the past two years to disrupt violent extremists 0:12:30.960 --> 0:12:34.400 online activities. That's according to current and former US officials 0:12:34.440 --> 0:12:37.439 and internet radicalization experts actually fear that the trend will 0:12:37.480 --> 0:12:41.040 accelerate under Trump. That reporting all comes fro bloombergs Jeffstone 0:12:41.280 --> 0:12:45.320 extraordinary timing. So you're working out here that basically demotment 0:12:45.360 --> 0:12:49.520 of honand security and indeed other agencies have not wanted 0:12:49.520 --> 0:12:52.000 to tip off the social media companies as much. 0:12:53.040 --> 0:12:56.560 That's right, Caroline, since the social media companies Meta being 0:12:56.600 --> 0:13:00.200 one of them, formerly Twitter being one of them, had 0:13:00.200 --> 0:13:04.520 a long history now of flagging false COVID related information 0:13:05.320 --> 0:13:07.800 misinformation around the vaccines. There's been a lot of political 0:13:07.800 --> 0:13:12.400 pushback in Washington encouraging them not to do that. The 0:13:12.400 --> 0:13:14.680 Department of Homeland Security and the FBI have kind of 0:13:14.679 --> 0:13:17.400 become collateral damage in that larger political fight, and they 0:13:17.440 --> 0:13:22.400 are now incredibly reluctant and prevented in some cases by 0:13:22.480 --> 0:13:26.720 law from dealing with social media firms to remove some 0:13:26.840 --> 0:13:30.000 of this really incendiary violent misinformation. 0:13:30.840 --> 0:13:35.319 Yet this comes but days after the New Year's Day 0:13:35.360 --> 0:13:38.720 attack on a Trump hotel, what happened in New Orleans. 0:13:38.840 --> 0:13:42.360 I mean, the idea that extremist content isn't going to 0:13:42.400 --> 0:13:47.480 be as monitored feels pretty scary, that's right. 0:13:47.520 --> 0:13:49.720 I mean, there's certainly a trend where we are seeing 0:13:49.720 --> 0:13:52.760 these extremist attacks in almost every case. You know, it 0:13:52.840 --> 0:13:54.600 used to be a small fraction, but now in almost 0:13:54.640 --> 0:13:58.280 every case, the perpetrators or suspected perpetrators who are carrying 0:13:58.280 --> 0:14:01.160 out if these attacks are often taught talking about them online, 0:14:01.200 --> 0:14:03.480 whether it be on sites like Meta in this case 0:14:03.960 --> 0:14:06.920 or on Discord as in the case with the mass 0:14:06.920 --> 0:14:10.120 shooter in Buffalo. The FBI and DHS are still going 0:14:10.160 --> 0:14:13.080 to continue to investigate based on some of those leads 0:14:13.080 --> 0:14:15.080 that they're seeing online, but they're not going to interact 0:14:15.120 --> 0:14:19.040 with social media companies to remove that content proactively. They're 0:14:19.040 --> 0:14:21.600 going to leave that to the social media firms. 0:14:21.880 --> 0:14:24.400 What's interesting within your story, you really build out the 0:14:24.440 --> 0:14:28.280 case that since so key court ruling here that as 0:14:28.280 --> 0:14:31.240 you articulated, has pushed the DHS and the FBI, it's 0:14:31.600 --> 0:14:34.280 less weighed in, but also there's less money going to 0:14:34.440 --> 0:14:36.760 external third party researchers as well. 0:14:36.800 --> 0:14:38.640 Right, that's right. 0:14:38.880 --> 0:14:42.000 External third party researchers are a key component in this 0:14:42.080 --> 0:14:44.240 larger ecosystem. They do a lot of the work on 0:14:44.320 --> 0:14:47.600 behalf of social media companies to kind of proactively flag 0:14:47.800 --> 0:14:52.320 and detect and remove some of this really again extremist, 0:14:52.440 --> 0:14:55.840 violent material. It goes beyond a lot of misinformation. They 0:14:55.880 --> 0:14:59.360 are now taking significantly less funding from the government because 0:15:00.360 --> 0:15:05.480 of some of the political connotations and disputes around this. Specifically, 0:15:06.080 --> 0:15:08.240 some of these researchers used to receive tens of millions 0:15:08.280 --> 0:15:11.120 of dollars, whereas last year the Department of Homeland Security 0:15:11.160 --> 0:15:15.960 gave them zero dollars for Internet related research exclusive reporting. 0:15:16.080 --> 0:15:18.120 Jeff Stone, we thank you so much. 0:15:26.200 --> 0:15:26.400 Now. 0:15:26.520 --> 0:15:30.480 The US has just added China's most valuable company, Tencent, 0:15:30.640 --> 0:15:33.680 as well as Tesla battery supply Caatl to its list 0:15:33.680 --> 0:15:37.280 of quote Chinese military companies. It's a move which could 0:15:37.280 --> 0:15:39.640 accelerate decoupling of the world's biggest economies. 0:15:39.760 --> 0:15:40.040 For more. 0:15:40.040 --> 0:15:41.760 We got to get out to Bloombergs Mike Shepard, and 0:15:41.760 --> 0:15:44.560 this seemed to come out of nowhere yesterday, and even 0:15:44.600 --> 0:15:46.880 Tencent itself thought it might be a mistake. 0:15:48.280 --> 0:15:50.440 And a lot of the other companies thought so too. 0:15:50.520 --> 0:15:52.520 They were really caught off guard, as a lot of 0:15:52.560 --> 0:15:55.840 us here in Washington were. It showed up without fanfare 0:15:55.920 --> 0:15:59.440 in a publication known as the Federal Register. They Pentagon 0:15:59.560 --> 0:16:02.040 just dropped it in there. But there was a purpose 0:16:02.120 --> 0:16:05.400 to this. It dates back to twenty twenty when President 0:16:05.440 --> 0:16:08.720 Donald Trump was still in office and under an executive 0:16:08.880 --> 0:16:12.360 order from him, he asked the Defense Department to look 0:16:12.400 --> 0:16:16.760 for companies in China that had ties or actual control 0:16:16.920 --> 0:16:20.280 by China's military. And the concern is that this nexus 0:16:20.360 --> 0:16:24.920 between China's military and the business community in China post 0:16:25.040 --> 0:16:28.640 a risk to global security, and as a result, we 0:16:28.680 --> 0:16:31.080 see this listening now. It's important to note that there 0:16:31.200 --> 0:16:35.280 is no sanction attached to it. However, there is something 0:16:35.320 --> 0:16:39.160 that would discourage US firms from doing business with anyone 0:16:39.160 --> 0:16:40.200 who is on this list. 0:16:40.560 --> 0:16:42.280 I think there was initially a worry that they might 0:16:42.280 --> 0:16:45.440 be forced to delist as well, Mike, is there any 0:16:45.560 --> 0:16:48.840 reality in that. Certainly ten Cent came out with a 0:16:48.880 --> 0:16:51.120 statement saying this doesn't affect our business in the here 0:16:51.200 --> 0:16:51.600 and now. 0:16:53.000 --> 0:16:55.560 That is a really good question, Caroly, and it was 0:16:55.640 --> 0:16:58.440 one that we were chasing down yesterday. And as far 0:16:58.480 --> 0:17:01.400 as we can tell, there is no immediate threat of 0:17:01.480 --> 0:17:04.719 the listening directly as a result of this, but it 0:17:04.760 --> 0:17:09.320 does prompt eight companies here, as I said, to revisit 0:17:09.359 --> 0:17:13.440 and rethink relationships with ten Cent and others. And there 0:17:13.480 --> 0:17:16.840 are now one hundred and twenty one Chinese companies on 0:17:16.920 --> 0:17:21.639 this Pentagon list that subject them to some additional scrutiny 0:17:21.720 --> 0:17:26.040 about their relationship with China's military, and the list also 0:17:26.080 --> 0:17:29.680 includes CATL, which is one of the world's biggest battery makers. 0:17:29.960 --> 0:17:34.760 They're critical to powering the electric vehicle revolution globally, but 0:17:34.800 --> 0:17:37.520 they've also been the focus of a lot of attention, 0:17:37.800 --> 0:17:42.199 especially from Congress, including incoming Secretary of State Mark or Rubio, 0:17:42.359 --> 0:17:44.800 who when he was in the Senate had really zeroed 0:17:44.840 --> 0:17:48.240 in on CATL as a potential national security risk through 0:17:48.240 --> 0:17:48.680 the US. 0:17:48.880 --> 0:17:51.200 So read those tea leaves for US, Mike, because on 0:17:51.200 --> 0:17:53.720 one side, my immediate reaction is, well, Coatl is a 0:17:53.720 --> 0:17:56.479 big supply to Tesla, and you know, Mosk isn't going 0:17:56.520 --> 0:17:59.439 to like that. He has the air of Trump for 0:17:59.480 --> 0:18:03.159 all some purposes, we understand. But then Marco Rubio coming in, 0:18:03.359 --> 0:18:05.560 he doesn't much like c ATL. So what does the 0:18:05.600 --> 0:18:07.040 next administration mean for this? 0:18:08.280 --> 0:18:10.960 Well, the tea leaves really are tough to read here, Caroline, 0:18:11.040 --> 0:18:13.720 and that's in part because we do see this kind. 0:18:13.600 --> 0:18:15.280 Of division of loyalties. 0:18:15.640 --> 0:18:18.320 This is also playing out with the TikTok band that 0:18:18.400 --> 0:18:21.960 is about to go into effect on January nineteenth unless 0:18:22.000 --> 0:18:25.000 the company, which has a Chinese parent, is able to 0:18:25.240 --> 0:18:29.480 persuade the Supreme Court to overturn this devest or ban law. 0:18:29.760 --> 0:18:32.639 Now President of Like Donald Trump, has made clear he 0:18:32.720 --> 0:18:36.520 would like to see TikTok survive as its own entity, 0:18:36.760 --> 0:18:39.639 to exist on its own and not be banned to 0:18:39.760 --> 0:18:43.439 somehow evade this ultimate sanction as a result of a 0:18:43.480 --> 0:18:47.200 new law. One also that Marco Rubio have helped push 0:18:47.240 --> 0:18:50.040 through so we will see these kinds of tensions playing 0:18:50.040 --> 0:18:53.159 out between some of the business interests, including from Elon 0:18:53.240 --> 0:18:56.840 Musk and others, playing out right there in the White House. 0:18:56.920 --> 0:18:59.920 They're trying to get tough on China, yet need also 0:19:00.119 --> 0:19:02.480 this connection to China for business themselves. 0:19:02.640 --> 0:19:04.359 And as shocking is it might be for many that 0:19:04.480 --> 0:19:07.720 a big gaming and social network platform Tencent might be 0:19:07.760 --> 0:19:11.399 in any way deemed a military related organization. There is 0:19:11.440 --> 0:19:15.520 also past tens We've seen Shaomi, for example, as a phonemaker, 0:19:15.520 --> 0:19:18.240 but also now a carmaker is managed to get itself 0:19:18.280 --> 0:19:20.800 off the list, right, So there's potential hope. 0:19:20.640 --> 0:19:24.680 Here, Yes, there is. These companies do have a way 0:19:24.800 --> 0:19:27.800 to appeal this. They can even take it to court 0:19:27.840 --> 0:19:30.879 and contest the listing, and a number of companies like 0:19:30.920 --> 0:19:33.800 you just mentioned show Me especially, have been able to 0:19:33.840 --> 0:19:37.640 get themselves removed and struck from the list. However, when 0:19:37.640 --> 0:19:40.280 we talk about ten Cent, let's turn back the clock 0:19:40.320 --> 0:19:44.119 again to twenty twenty, when Donald Trump as president initially 0:19:44.160 --> 0:19:47.320 tried to ban TikTok, he also went after ten cents 0:19:47.400 --> 0:19:51.639 we chat app, which is this all inclusive communications and 0:19:51.760 --> 0:19:54.919 payments platform that the US government had viewed as a 0:19:55.000 --> 0:19:58.639 risk in the US by anybody who was using it 0:19:58.680 --> 0:20:01.600 here now there is not nearly as much use of 0:20:01.720 --> 0:20:05.400 we chair here as by TikTok, but we do see 0:20:05.440 --> 0:20:10.200 the same sort of argument being played out with tencent 0:20:10.760 --> 0:20:13.520 back then and perhaps the echo of it now as well. 0:20:13.960 --> 0:20:16.640 Mike Shepard, we thank you so much on all things 0:20:16.800 --> 0:20:19.600 US China. We can go just onto data centers now 0:20:19.680 --> 0:20:21.359 and get back to see yes where our own ed 0:20:21.440 --> 0:20:23.920 Ludlow is standing by with a very special guest who's 0:20:23.920 --> 0:20:26.120 probably going to benefit from that spending in the United States. 0:20:26.320 --> 0:20:31.840 D Yeah, Good morning from Las Vegas, Caroline and Jensen one, 0:20:32.080 --> 0:20:35.320 CEO of Nvidia, fresh off his keynote last night on stage. 0:20:35.760 --> 0:20:36.320 Great to see you. 0:20:36.720 --> 0:20:39.760 Welcome to Las Vegas. Thank you every new year, familiar territory. 0:20:39.880 --> 0:20:41.439 Congratulations on your new baby. 0:20:41.560 --> 0:20:42.480 Thank you very much. 0:20:43.040 --> 0:20:45.480 A lot's changed since we last spoke, actually, but of 0:20:45.600 --> 0:20:48.360 the broad spectrum of what you announced last night. New 0:20:48.359 --> 0:20:52.879 graphics cards, new chips actually technically in the automotive space, 0:20:52.960 --> 0:20:56.199 products and services on the software side, which is the 0:20:56.240 --> 0:20:59.520 single most important for in video's future. 0:20:59.600 --> 0:21:00.919 There are important you know. 0:21:00.960 --> 0:21:01.600 It's hard. 0:21:01.760 --> 0:21:05.760 It's it's hard. It's hard. It's hard to pick your favorites. 0:21:05.880 --> 0:21:09.280 You know, we announced three chips, We announced a brand 0:21:09.359 --> 0:21:13.720 new AI, a world foundation model and first of its kind, 0:21:14.200 --> 0:21:18.840 and we announced our work in three areas and robotics, right, 0:21:19.200 --> 0:21:22.760 and they're all important. And you know the thing of course, 0:21:23.280 --> 0:21:28.159 we announced a brand new Blackwell RTX and has a 0:21:28.200 --> 0:21:36.240 new AI technology called neuro Neuroshaters, and we're combining artificial 0:21:36.280 --> 0:21:38.920 intelligence and classical. 0:21:38.440 --> 0:21:40.880 Computers RTX and U RTX. 0:21:40.960 --> 0:21:44.560 Yeah, we've become so accustomed to your story being dominant 0:21:44.600 --> 0:21:48.280