WEBVTT - Reid Hoffman on AI Investing, Trade Policy, and Doge 0:00:02.759 --> 0:00:10.040 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:10.080 --> 0:00:15.800 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.239 --> 0:00:20.480 This is Bloomberg Technology with Caroline Hyde. 0:00:20.079 --> 0:00:35.720 And Ed Ludlow live from New York and San Francisco. 0:00:35.880 --> 0:00:39.680 This is Bloomberg Technology coming up. Alphabet earnings impress Wall 0:00:39.720 --> 0:00:42.360 Street as Google's ad business stays resilient. 0:00:43.120 --> 0:00:45.920 It's a different story at Intel, with investors preparing for 0:00:46.000 --> 0:00:49.720 short term pain from layoffs and a company culture reset. 0:00:49.720 --> 0:00:54.600 And as Trump targets EUAI regulation. We discussed with billionaire 0:00:54.600 --> 0:00:58.279 founder and investor Read Hoffman. But first, let's just check 0:00:58.320 --> 0:01:01.240 in on these markets. And we are significantly higher on 0:01:01.280 --> 0:01:03.600 the week, Then that's that one hundred pushing up five 0:01:03.720 --> 0:01:05.520 and a quarter percent. We've added one on a quarter 0:01:05.640 --> 0:01:08.080 trillion dollars in terms of market cap over the last. 0:01:07.880 --> 0:01:08.920 Five training days. 0:01:09.000 --> 0:01:11.600 But it's only the biggest move on a weekly basis, 0:01:11.760 --> 0:01:13.640 says two weeks ago. We are used to this sort 0:01:13.680 --> 0:01:17.399 of volatility. Today, the consumer sentiment looking ugly. We just 0:01:17.480 --> 0:01:19.840 pair some of those increases that we've been seeing over 0:01:19.880 --> 0:01:21.560 the last three days. Let's move on and have a 0:01:21.600 --> 0:01:23.720 little look at what's happening on other risk assets a choice. 0:01:23.720 --> 0:01:26.320 Look Crepto having an absolute stellar run. If you're looking 0:01:26.360 --> 0:01:29.399 at bitcoin, old coins to the side, but Bitcoin up 0:01:29.440 --> 0:01:32.160 twelve percent of those five days, so clearly outperforming ed. 0:01:32.360 --> 0:01:34.600 What are you looking at on the micro Well, let's 0:01:34.600 --> 0:01:36.800 start with T Mobile dan more than ten percent, on 0:01:36.920 --> 0:01:39.640 track for its biggest drop since March of twenty twenty, 0:01:40.280 --> 0:01:43.720 basically missed on paid wireless subscribers. Really interesting week in 0:01:43.720 --> 0:01:45.360 that space. We don't have a lot of time today 0:01:45.400 --> 0:01:47.160 to go over it, but the size of the move 0:01:47.200 --> 0:01:48.960 I wanted to bring it to the audience and maybe 0:01:49.000 --> 0:01:49.640 we'll find a. 0:01:49.560 --> 0:01:50.560 Moment to chat about. 0:01:50.800 --> 0:01:53.520 There are bigger names that we're focused on throughout the hour. 0:01:53.600 --> 0:01:54.639 One of those is Apple. 0:01:54.720 --> 0:01:56.920 A lot of Bloomberg reporting about what Apple was going 0:01:56.960 --> 0:02:00.000 to do in supply chain in response to potential tariffs, 0:02:00.320 --> 0:02:02.960 and also what they're going to do with talent at 0:02:03.000 --> 0:02:04.000 the top of that company. 0:02:04.120 --> 0:02:06.040 We'll get to it later. Alphabet you just. 0:02:06.000 --> 0:02:09.360 Pointed out right up two percent core search business, good 0:02:09.720 --> 0:02:12.519 revenue in cloud. Interesting, We're going to cover that in detail. 0:02:12.560 --> 0:02:16.239 And then there's Intel still under pressure, still working out 0:02:16.240 --> 0:02:19.960 what to do, cutting middle management, signs that they had 0:02:20.000 --> 0:02:23.040 a good one queue because people were anticipating tariffs. 0:02:23.280 --> 0:02:24.480 We'll get to it, we. 0:02:24.400 --> 0:02:26.800 Will get to it, ed and more broadly, I know 0:02:26.800 --> 0:02:30.240 that you spoke with a CFO of Intel and how 0:02:30.320 --> 0:02:32.840 much that we're still seeing a seismic shift of that business, 0:02:33.000 --> 0:02:36.480 how much you're still seeing an overall concern about where 0:02:36.520 --> 0:02:39.680 Intel goes in terms of just trying to delayer, trying 0:02:39.680 --> 0:02:41.560 to get rid of some of that middle management. The 0:02:41.600 --> 0:02:43.720 fat that in Video is managing to bring in almost 0:02:43.800 --> 0:02:46.800 well more than three times the revenue of Intel on 0:02:46.919 --> 0:02:51.119 about a third less of the overall employee basis significant. 0:02:51.160 --> 0:02:52.840 But we returned to Alphabet. 0:02:52.360 --> 0:02:55.440 Which is actually coming off of those pre market highs. 0:02:55.440 --> 0:02:57.240 We're up more than two percent, but we had seen 0:02:57.280 --> 0:02:59.320 a move of more than six percent, and after hours 0:02:59.320 --> 0:03:01.639 after the numbers stick in Davy albums with us, you 0:03:01.760 --> 0:03:05.000 cover this company, and actually it just seemed to be relief. 0:03:05.760 --> 0:03:09.119 Yeah. I think that a lot of people were sort 0:03:09.120 --> 0:03:13.400 of bracing themselves for the at least initial impact of 0:03:13.760 --> 0:03:17.880 Trump tariffs which are looming over these companies. But Alphabet's 0:03:17.880 --> 0:03:22.680 earnings were actually quite impressive, especially on advertising, YouTube and searched. 0:03:22.720 --> 0:03:26.240 We up ten percent year over year, and it really 0:03:26.320 --> 0:03:30.480 is a resilient and diverse business portfolio that they have, 0:03:30.639 --> 0:03:32.400 and the earnings reflected that. 0:03:33.840 --> 0:03:36.000 Blue Most Daily Alba and all things alphabet. Thank you 0:03:36.080 --> 0:03:38.240 very much. Let's turn to the other big mover. Intel. 0:03:38.320 --> 0:03:42.120 The company posted a week second quarter forecast with plans 0:03:42.160 --> 0:03:45.320 to slash jobs, sending shares sliding. I spoke with Intel 0:03:45.440 --> 0:03:48.960 CFO David Sinsna, and he told me they'll reduce the 0:03:49.040 --> 0:03:52.400 layers and cut the bureaucracy out. It's an effort to 0:03:52.440 --> 0:03:55.680 scale back on op X and Capex for more. Let's 0:03:55.680 --> 0:03:57.600 bring in bloombos Ian King, who is also on that 0:03:57.640 --> 0:04:02.200 call with David'sinsna. There are many stories with Intel, most 0:04:02.200 --> 0:04:03.280 of them still negative. 0:04:03.320 --> 0:04:05.320 What's the need to know about this chip? Name? 0:04:05.440 --> 0:04:05.640 Yeah? 0:04:05.640 --> 0:04:08.680 I mean short term, they confirmed everybody's fears, which is 0:04:09.440 --> 0:04:13.080 a nice first quarter. Things were better than we had feared, perhaps, 0:04:13.360 --> 0:04:16.040 but that's really a false dawn for the industry. That 0:04:16.120 --> 0:04:18.039 a lot of this is what's called pull in, but 0:04:18.080 --> 0:04:19.880 basically people trying to get as much as they can 0:04:20.040 --> 0:04:23.080 ahead of any tariff impact so that won't continue. And 0:04:23.120 --> 0:04:24.920 guess what, there might be a recession on the way 0:04:25.000 --> 0:04:25.960 you use the R word. 0:04:27.000 --> 0:04:27.560 Longer term. 0:04:27.600 --> 0:04:31.560 People wanted a more than just a diagnosis. They wanted 0:04:31.640 --> 0:04:33.640 an answer, this is what we are going to fix, 0:04:33.720 --> 0:04:35.720 this is how we're going to fix it. Didn't really 0:04:35.720 --> 0:04:38.520 get that apart from as you just indicated, this is 0:04:38.560 --> 0:04:41.000 what's wrong with Intel's culture and internally, this is what 0:04:41.080 --> 0:04:41.520 we need. 0:04:41.360 --> 0:04:44.240 To fix what on earth happens with the fabrication side 0:04:44.240 --> 0:04:46.480 of it. In King, it was a great interview that 0:04:46.520 --> 0:04:49.360 you did with Ed. Thanks so much. More on Google 0:04:49.520 --> 0:04:52.320 and Intel and broader tech sector Now, Ioko Yoshioka's with 0:04:52.400 --> 0:04:56.159 US Wealth Enhancement Group porfolio consulting director. Ioko, I start 0:04:56.200 --> 0:04:59.600 with Intel because it was the fabrication future that many 0:04:59.600 --> 0:05:01.800 are still left quandering, and much of that is because 0:05:01.800 --> 0:05:04.679 we don't really know what US policy is in terms 0:05:04.680 --> 0:05:08.000 of money going to Intel. Just how difficult is it 0:05:08.200 --> 0:05:10.920 to invest in hardware in the US right now? 0:05:12.560 --> 0:05:16.200 Sure, just given the overall uncertainty that you know is 0:05:16.640 --> 0:05:19.240 in the market and as well as just with policy, 0:05:20.160 --> 0:05:24.040 it's very difficult to make long term business decisions in general, 0:05:24.600 --> 0:05:27.479 whether it's Intel or anybody else. And so I think 0:05:27.480 --> 0:05:30.080 that's what's being reflected in the markets. 0:05:30.120 --> 0:05:31.480 And then for Intel. 0:05:31.279 --> 0:05:34.680 Specifically, you know, they really do need to make a 0:05:34.720 --> 0:05:37.400 lot of changes, and they are going to be longer 0:05:37.480 --> 0:05:41.839 term in nature, really in order to re establish themselves. 0:05:41.880 --> 0:05:45.040 That it's table stakes at this point for Intel. 0:05:46.320 --> 0:05:48.279 Okay, can we just talk about the pull forward that 0:05:48.320 --> 0:05:51.679 Ian mentioned. One Q is better than the street thought, 0:05:52.360 --> 0:05:57.119 the two Q outlook worse. The logic customers bought chips 0:05:57.120 --> 0:05:58.520 in the first three months of the year because they 0:05:58.560 --> 0:05:59.479 knew tariffs were coming. 0:06:01.160 --> 0:06:01.960 Do you think. 0:06:01.760 --> 0:06:05.279 About that as a sort of solely Intel problem or 0:06:05.320 --> 0:06:07.480 do you give them a pass in that this is 0:06:07.520 --> 0:06:10.160 an everyone problem at the moment in this chip space. 0:06:11.920 --> 0:06:14.600 Now, I do think it is an everyone problem, and 0:06:14.680 --> 0:06:17.440 it's not just for chips, right. I think a lot 0:06:17.440 --> 0:06:22.120 of you know, business executives made the decision to pull 0:06:22.200 --> 0:06:26.600 forward some of the needs, anticipating that there might be 0:06:26.680 --> 0:06:30.840 some turmoil, you know, going forward related to trade policy. 0:06:31.200 --> 0:06:33.799 We did start to see a lot of the sort 0:06:33.800 --> 0:06:36.480 of news come through, whether it was with Canada and 0:06:36.520 --> 0:06:39.760 Mexico in February, and so I think there was a 0:06:39.800 --> 0:06:44.000 little bit of angst and there was likely a lot 0:06:44.000 --> 0:06:47.120 of pull forward across not just the chip sector, but 0:06:47.200 --> 0:06:49.200 across a lot of different goods. 0:06:50.960 --> 0:06:55.360 Google's core search related ad business is doing well. What 0:06:55.400 --> 0:06:57.120 does that tell you about the world we live in 0:06:57.200 --> 0:06:57.679 right now. 0:06:59.560 --> 0:07:00.560 Sure, so, I think. 0:07:00.600 --> 0:07:04.440 You know, with Google, it's been a little tough, right. 0:07:04.640 --> 0:07:08.039 Google is inexpensive. It trades at sixteen and a half 0:07:08.040 --> 0:07:12.400 seventeen times, and Search has been strong. Search and YouTube, 0:07:13.240 --> 0:07:16.080 you know, up ten percent a year over year and 0:07:16.160 --> 0:07:19.920 so strong numbers there. And Google Cloud was up over 0:07:20.000 --> 0:07:24.320 twenty eight percent and they showed great profitability in that 0:07:24.400 --> 0:07:28.280 segment as well. So things are moving along really well 0:07:28.320 --> 0:07:31.880 for Google. It's just that the narrative and those existential 0:07:31.920 --> 0:07:36.280 issues aren't going away. You have those regulatory issues and 0:07:36.320 --> 0:07:45.960 you also have you also have the AI issues still. 0:07:45.760 --> 0:07:49.160 Get to that, dig into that iocode because we all 0:07:49.160 --> 0:07:50.960 know about the ab trust issues and we're going to 0:07:50.960 --> 0:07:51.800 talk about that at. 0:07:51.760 --> 0:07:53.920 Length with Doug dot Go in a moment. But I'm 0:07:53.920 --> 0:07:54.800 interested in the. 0:07:54.720 --> 0:07:58.720 AI issues because people are using aioverviews, people are seeing 0:07:58.840 --> 0:08:01.200 a capex spend of seventy five billion dollars being committed 0:08:01.200 --> 0:08:03.920 to and sort of are okay with that infrastructure rollout. 0:08:04.200 --> 0:08:06.280 What more do they need to do to prove that 0:08:06.320 --> 0:08:07.400 they're the winning one here? 0:08:09.040 --> 0:08:12.560 Sure so, I think because so many you know, there's 0:08:12.600 --> 0:08:16.440 so many competitors in the AI space that you know, 0:08:16.480 --> 0:08:18.600 we don't. We just don't know, and we still don't 0:08:18.640 --> 0:08:23.040 know how it's going to monetize properly for. 0:08:23.040 --> 0:08:23.880 Google, right. 0:08:24.400 --> 0:08:27.200 We know that even and when they do monetize some 0:08:27.320 --> 0:08:30.760 of it, they're still cannibalizing some of their own search revenue. 0:08:31.040 --> 0:08:33.120 And so I think that's the part that's still just 0:08:33.400 --> 0:08:37.280 not going away, and until that mix sort of levels off, 0:08:37.520 --> 0:08:40.040 we won't have a true answer there. And I think 0:08:40.080 --> 0:08:43.520 that's what's keeping a lid on the overall multiple for Google, 0:08:44.000 --> 0:08:44.920 at least in the near. 0:08:44.840 --> 0:08:48.599 Term when the numbers hit other megacaps Rose, Meta and 0:08:48.720 --> 0:08:51.040 VideA for example. But when I bring back that chart, 0:08:51.040 --> 0:08:53.080 we had a moment ago twenty eight per cent growth 0:08:53.120 --> 0:08:56.120 is great, but it's a deceleration year on year quarter 0:08:56.200 --> 0:09:01.040 on Quarder, there's micro focus on the ad business, But 0:09:01.120 --> 0:09:03.840 how did this set us up for the rest of 0:09:03.880 --> 0:09:09.200 earning season, in particular our sort of commitment to living 0:09:09.280 --> 0:09:11.680 or dying by capital expenditures numbers? 0:09:11.720 --> 0:09:14.480 Please ioco, Yeah. 0:09:14.320 --> 0:09:17.959 You know, I think it's more of an overall industry 0:09:18.080 --> 0:09:20.920 capex spend that we're looking at, right, So it's not 0:09:21.040 --> 0:09:25.880 just alphabets spend on capex, but it's also Amazon and 0:09:25.960 --> 0:09:29.760 Meta and Microsoft's overall spend because a lot of that 0:09:29.920 --> 0:09:31.880 is then going to go to in video with the 0:09:32.000 --> 0:09:35.400 chips and the overall AI build out, all the data 0:09:35.440 --> 0:09:39.480 center providers as well will be beneficiaries. And so I 0:09:39.480 --> 0:09:42.560 think that's where you know, we're all focused on. It's 0:09:42.559 --> 0:09:46.040 still relatively early, and despite the fact that it was 0:09:46.120 --> 0:09:50.360 a deceleration from a Google Google Cloud perspective, you know, 0:09:50.440 --> 0:09:54.040 I think that you know, you're still seeing cloud growth, 0:09:54.120 --> 0:09:58.280 cloud computing grow in this fifteen to twenty percent range, 0:09:58.960 --> 0:10:01.480 you know, for the next five plus years, and so 0:10:01.559 --> 0:10:03.440 I think you want to lean into that for the 0:10:03.520 --> 0:10:06.160 long term and not just look at the overall you know, 0:10:06.320 --> 0:10:10.959 one quarter deceleration, you know, relatives to last quarter. 0:10:11.840 --> 0:10:15.040 A Yoko Yoshoka Wealth Enhartcement Group. Great to see, thank 0:10:15.080 --> 0:10:15.760 you very much. 0:10:23.679 --> 0:10:26.600 The Trump administration, well, it's pressuring Europe to ditch an 0:10:26.600 --> 0:10:29.880 AI rulebook that would play stricter standards on transparency, on 0:10:29.920 --> 0:10:34.040 mis mitigation, on copyright rules for advanced artificial intelligence. Let's 0:10:34.040 --> 0:10:35.920 get more on this of Bluebergs Mike Shephard, this is 0:10:36.080 --> 0:10:39.480 basically a voluntary AI Code of Practice to accompany the 0:10:39.520 --> 0:10:40.120 AI Act. 0:10:40.760 --> 0:10:42.240 What is the US dislike here. 0:10:43.400 --> 0:10:46.280 Well, the US dislikes the idea that it could be 0:10:46.360 --> 0:10:50.560 compelling companies to have to comport. 0:10:50.240 --> 0:10:52.200 With rules that they see as. 0:10:52.160 --> 0:10:57.240 Restrictive and potentially restricting innovation and stifling innovation. And this 0:10:57.280 --> 0:10:59.560 is a refrain that we've been hearing from the Trump 0:10:59.559 --> 0:11:03.880 administer really since they took office, and they're targeting this 0:11:04.000 --> 0:11:07.480 even though it's a voluntary code of conduct, it's designed 0:11:07.480 --> 0:11:10.560 to serve as a set of guidelines for obeying the 0:11:10.880 --> 0:11:15.480 Block's AI Act, and under that law, companies that violate 0:11:15.520 --> 0:11:17.800 it run the risk of some pretty hefty fines, and 0:11:17.840 --> 0:11:20.560 that would be up to seven percent of a company's 0:11:20.559 --> 0:11:23.600 annual sales, and if you look at Google's results from yesterday, 0:11:23.800 --> 0:11:26.720 that could be upwards of five billion dollars. But there's 0:11:26.760 --> 0:11:29.400 more at stake here than just the money here, Caro, 0:11:29.600 --> 0:11:33.480 it's also just this idea of regulation, and it's a 0:11:33.559 --> 0:11:36.720 question that we've heard the administration articulate time and again, 0:11:36.840 --> 0:11:38.920 especially with relation to the EU. 0:11:39.000 --> 0:11:42.880 Here, Caro, I think a lot like about the administration's 0:11:42.880 --> 0:11:46.400 approach to the Block. This is just one example, right 0:11:46.559 --> 0:11:51.240 of this administration's attitude towards the European Union, particularly in 0:11:51.280 --> 0:11:52.560 the context of tech. 0:11:54.040 --> 0:11:58.440 Absolutely, and they are taking aim at a series of measures. 0:11:58.480 --> 0:12:00.600 One on the whole question. 0:12:00.920 --> 0:12:04.760 They have questioned the Digital Markets Act, seeing it as 0:12:04.760 --> 0:12:08.040 a restriction on free trade. They are also complaining about 0:12:08.120 --> 0:12:11.880 content moderation, that the block is much more in favor 0:12:11.920 --> 0:12:14.480 of than here in the United States, and they see 0:12:14.520 --> 0:12:17.040 that as a restriction on free speech. And then when 0:12:17.080 --> 0:12:20.040 it comes to artificial intelligence. Back in February, you'll recall 0:12:20.120 --> 0:12:23.559 that during the Big art AI summit the French President 0:12:23.559 --> 0:12:28.000 Emanuel Macrone hosted in Paris, jd Vance made an address 0:12:28.080 --> 0:12:30.360 there where he drew a line in the sand and 0:12:30.400 --> 0:12:34.160 he cautioned the entire block in other countries as well 0:12:34.320 --> 0:12:39.040 against overregulating AI and targeting American companies in the process. 0:12:39.240 --> 0:12:41.520 Google has spoken out about it, so too has Matta 0:12:41.559 --> 0:12:42.640 bloombergs Mike Shephard. 0:12:42.840 --> 0:12:43.360 We thank you. 0:12:43.840 --> 0:12:46.720 Look turning back to Washington now, where a court continues 0:12:46.760 --> 0:12:50.600 to hear arguments on remedies for Google's search monopoly. One 0:12:50.640 --> 0:12:54.520 beneficiary of a breakup, well potentially, it's such rivals such 0:12:54.520 --> 0:12:57.479 as dot dot Go. We're joined now by Camail Buzbas, 0:12:57.679 --> 0:12:59.480 Doc dot Go is senior vice president of. 0:12:59.400 --> 0:13:04.200 Public Affairs, how has this remedial discussion been going from 0:13:04.200 --> 0:13:05.640 your perspective? Have you been heard? 0:13:06.320 --> 0:13:06.560 Yeah? 0:13:06.600 --> 0:13:10.600 So, our CEO just wrapped up almost six hours of 0:13:10.679 --> 0:13:12.600 testimony yesterday in the trial. 0:13:13.080 --> 0:13:13.920 And it's our. 0:13:13.840 --> 0:13:20.439 Belief that over the last fifteen years since both the 0:13:20.480 --> 0:13:25.280 case was filed and the time that the case addresses, 0:13:25.720 --> 0:13:29.680 Google's illegally monopolize the search market, and so throughout that time, 0:13:29.720 --> 0:13:33.240 we've never had a fair playing field to compete, and 0:13:33.320 --> 0:13:34.880 the remedies in this case can change that. 0:13:35.280 --> 0:13:39.280 Well, the remedies, alphabet would argue, go too far spinning 0:13:39.280 --> 0:13:42.000 off chrome, for example, We'll get to a price point 0:13:42.000 --> 0:13:42.680 for chrome in a moment. 0:13:42.720 --> 0:13:44.120 I know EDS need to talk about that. 0:13:44.160 --> 0:13:47.240 But there's other ones in terms of whether it's selling 0:13:47.240 --> 0:13:51.600 off chrome, whether it's sharing data realistically, what would you 0:13:51.760 --> 0:13:53.599 like to be done that makes it more of a 0:13:53.679 --> 0:13:55.560 leven a level playing field. 0:13:55.679 --> 0:13:56.480 Yeah, Well, here's the thing. 0:13:56.559 --> 0:13:58.640 Each of the remedies that have been proposed by the 0:13:58.679 --> 0:14:02.000 government are necessary but not sufficient on their own. We're 0:14:02.000 --> 0:14:06.000 talking about undoing more than fifteen years of illegal monopoly 0:14:06.960 --> 0:14:09.040 monit of so you think it doesn't go far enough. 0:14:09.559 --> 0:14:12.360 I think that everything in there deserves to be there 0:14:12.400 --> 0:14:15.600 and has a very targeted purpose and specifically addresses what 0:14:15.679 --> 0:14:18.000 the judge put in his ruling. There's both a distribution 0:14:18.120 --> 0:14:21.960 advantage and a scale advantage. So you need access to 0:14:22.080 --> 0:14:26.440 users right right now, most users don't actually pick Google. 0:14:26.480 --> 0:14:28.640 That decision is made for them by the fact that 0:14:28.680 --> 0:14:33.040 they're the near default, the near exclusive default everywhere people 0:14:33.240 --> 0:14:36.800 access search engines. When you have that advantage, it means 0:14:36.840 --> 0:14:40.480 you have a scale advantage. And you heard multiple CEOs 0:14:40.480 --> 0:14:43.200 from different companies over this week talk about that scale 0:14:43.200 --> 0:14:47.000 advantage and how that makes getting quality search results difficult. 0:14:47.000 --> 0:14:50.160 Even open ai was saying that it's an eighty twenty thing. 0:14:50.280 --> 0:14:53.280 They can do eighty percent, but then when it comes 0:14:53.280 --> 0:14:55.680 to the twenty percent of what's called long tail queries, 0:14:55.720 --> 0:14:58.120 these are specific queries that aren't done a lot. Even 0:14:58.120 --> 0:15:00.840 they're struggling with it. And this is and Google still 0:15:00.880 --> 0:15:02.160 has the best index. 0:15:02.960 --> 0:15:05.040 Cameo, I do want to talk to you about queries. 0:15:05.080 --> 0:15:06.880 I think we've talked about this in the past, But 0:15:07.280 --> 0:15:10.440 what came out of the process is that Chrome is 0:15:10.480 --> 0:15:14.480 a hot commodity. Right your boss assigned a fifty billion 0:15:14.480 --> 0:15:17.800 dollar value, but we hear from Yahoo and open ai 0:15:18.440 --> 0:15:22.280 that they're interested in it. What I'd appreciate you spelling 0:15:22.280 --> 0:15:25.560 out for the audience is what would your business actually 0:15:25.640 --> 0:15:30.000 get in purchasing or there being a change in the 0:15:30.040 --> 0:15:34.600 ownership of Chrome, particularly in light of that Chromium the 0:15:34.760 --> 0:15:38.840 underlying source base or source code is open source anyway. 0:15:39.320 --> 0:15:42.800 So if you are a big tech company and you 0:15:43.000 --> 0:15:45.880 are trying to make money, which is of course the goal, 0:15:45.920 --> 0:15:50.120 and you have advertising, the fact that the most popular 0:15:50.280 --> 0:15:53.560 browser in the entire world would be up for sale 0:15:54.520 --> 0:15:56.080 is in enormous value. 0:15:56.160 --> 0:15:58.120 I mean, if you think about the kids that's going. 0:15:58.000 --> 0:16:02.400 On just downstairs from the a search case, the metacase 0:16:03.080 --> 0:16:06.960 meant about WhatsApp for nineteen million dollars, sorry, at nineteen 0:16:07.000 --> 0:16:11.600 billion dollars, the worth of Chrome is at least double that. 0:16:12.240 --> 0:16:15.280 You can imagine any big tech company that has an 0:16:15.280 --> 0:16:19.760 ad service would put ads on a Chrome that they own, 0:16:19.920 --> 0:16:24.520 and that could create endless monetization opportunities for them. 0:16:25.160 --> 0:16:27.120 I believe that you would like to have access to 0:16:27.440 --> 0:16:30.480 Google's click and query data. 0:16:30.600 --> 0:16:32.720 What is the benefit of that to you? Please? 0:16:33.320 --> 0:16:37.080 Yeah, So the benefit there is, you know, Google has 0:16:37.120 --> 0:16:41.240 a massive scale advantage now when compared to other search engines, 0:16:41.280 --> 0:16:44.880 and that scale advantage means they see much more clicks 0:16:44.960 --> 0:16:48.400 and queries than other search engines, which means that they 0:16:48.440 --> 0:16:53.480 can improve the quality of their search engines faster and 0:16:53.560 --> 0:16:57.520 just overall have a better quality than others. Can you 0:16:57.560 --> 0:17:00.760 know our CEO talked about yesterday, right, Let's say you 0:17:01.320 --> 0:17:03.840 look something up on duck duto. You're trying to go 0:17:03.920 --> 0:17:07.280 to a pharmacy or a restaurant, and you might see 0:17:07.320 --> 0:17:12.080 that the hours aren't correct, but they are on Google. 0:17:12.119 --> 0:17:15.800 And oftentimes that's because of that kind of clicking query data. 0:17:16.440 --> 0:17:20.359 More people are clicking on the correct hours and thus 0:17:20.640 --> 0:17:24.000 giving Google the information that this is what you should 0:17:24.000 --> 0:17:28.200 be displaying to users. And you know, you don't want 0:17:28.200 --> 0:17:32.200 someone switching to duc dout go and having them try 0:17:32.240 --> 0:17:35.080 a few things out and end up rage quitting at 0:17:35.119 --> 0:17:38.080 the end of it. And so by sharing this data, 0:17:38.840 --> 0:17:41.679 you can level the quality playing field while also making 0:17:41.800 --> 0:17:44.280 improvements to it. Because as I think people have seen, 0:17:44.640 --> 0:17:46.720 you know, Google has said, you know, whether it's I 0:17:46.880 --> 0:17:50.560 overviews or telling people to eat rocks and put glue 0:17:50.560 --> 0:17:54.480 on pizza, you know, there's a lot of opportunity for 0:17:55.000 --> 0:17:58.359 better integrations and better services. And so this is not 0:17:58.440 --> 0:18:00.800 at all a copy and paste. This is asking for 0:18:01.320 --> 0:18:04.080 a level of playing field on which to compete. 0:18:04.520 --> 0:18:07.959 You feel that Google should be forced to give you 0:18:07.960 --> 0:18:10.160 that data. 0:18:10.200 --> 0:18:12.640 I think that is how you can level the playing 0:18:12.720 --> 0:18:14.760 field for other search engines. 0:18:15.040 --> 0:18:16.840 And it's more just about leveling the playing field. 0:18:17.200 --> 0:18:20.080 Remind us of the benefit to the consumer here, because 0:18:20.440 --> 0:18:22.120 I mean, it's all very well that your business wants 0:18:22.160 --> 0:18:24.440 to do better, but me as a consumer, is really 0:18:24.520 --> 0:18:26.280 rather happy with my experience thus far. 0:18:26.640 --> 0:18:28.119 You know, I think that there's a little bit of 0:18:28.119 --> 0:18:32.240 a Stockholm syndrome happening with Google and that everyone's like, well, 0:18:32.280 --> 0:18:35.280 this is great, I'm enjoying this, but you're also somewhat 0:18:35.320 --> 0:18:39.439 captive to this because you've never been exposed to alternatives. 0:18:39.720 --> 0:18:42.800 I mean, you know, anyone watching here, try and switch 0:18:42.800 --> 0:18:44.840 your search engine right now and see if you can 0:18:44.840 --> 0:18:47.480 finish it. By the time we're done. It is too 0:18:47.520 --> 0:18:50.040 difficult to do it. And that's not an accident, right. 0:18:50.080 --> 0:18:54.080 Google is extremely good at designing products to get users 0:18:54.160 --> 0:18:55.959 or do exactly what they want to do, and in 0:18:55.960 --> 0:18:58.920 this case, what they don't want to do right as well. 0:19:00.200 --> 0:19:02.760 In Google's counter would of course be that Chromium's open 0:19:02.840 --> 0:19:06.240 source and the four penalties or targeted remedies of the 0:19:06.320 --> 0:19:09.520 Dog combined Go Way Beyond and are Way Too Punitive. 0:19:09.600 --> 0:19:13.000 Kamil Barzbars, SVP of Public Affairs with GO, thank you 0:19:13.040 --> 0:19:16.000 for joining us on the story. Now coming up, Apple 0:19:16.080 --> 0:19:20.720 looks to accelerate a manufacturing shift from China to India. 0:19:20.800 --> 0:19:26.000 Will have more. This has been bo technology. 0:19:31.800 --> 0:19:33.840 It is time now for talking tech and first up, 0:19:33.920 --> 0:19:36.399 Meta Well. It's laying off over one hundred people in 0:19:36.440 --> 0:19:37.679 its reality Labs division. 0:19:37.680 --> 0:19:39.880 It's acording to a person familiar with the matter now. 0:19:39.880 --> 0:19:42.879 The cuts will impact staff focused on creating the r 0:19:42.960 --> 0:19:47.200 experiences for Metaquest headsets, along with operations focused employees, as 0:19:47.200 --> 0:19:49.919 as the company looks to streamline work being done across 0:19:49.920 --> 0:19:53.680 two different teams. Plus Apple Well, it's stripping its secret 0:19:53.960 --> 0:19:58.560 robotics unit from the AI organization under John Gianandrea. 0:19:58.920 --> 0:20:00.480 Now it's moving to AG division. 0:20:00.480 --> 0:20:02.480 According to sources, the move is part of a broader 0:20:02.520 --> 0:20:04.840 Apple effort to catch up rivals in the AI space 0:20:05.000 --> 0:20:08.280 and its second major project to be removed from aichief 0:20:08.280 --> 0:20:11.159 in the past month. And Sticking with Apple, the company 0:20:11.200 --> 0:20:14.040 says it plans to build more iPhones to the United States. 0:20:14.119 --> 0:20:16.440 In India, Apple aims. 0:20:16.119 --> 0:20:18.760 To roughly double its annual iPhone output in India to 0:20:18.800 --> 0:20:21.639 all than eighty million units, moving production away from China. 0:20:22.000 --> 0:20:25.880 Mid of course, the US trade war ed coming up. 0:20:26.040 --> 0:20:30.280 Divergences in tech, Intel issues and outlook warning as Google 0:20:30.400 --> 0:20:34.240 posts strong ad sales results, yet both companies face headwinds 0:20:34.359 --> 0:20:37.280 from renewed tariffs and global uncertainty. That's going to be 0:20:37.280 --> 0:20:39.600 our topic of conversation next. Let's get back to a 0:20:39.680 --> 0:20:42.800 recap of where the markets stand. It's been a decent 0:20:42.920 --> 0:20:45.520 five days at the index level, and as that one 0:20:45.600 --> 0:20:48.119 hundred looking strong but kind of losing a bit of 0:20:48.160 --> 0:20:51.959 momentum on the Friday. Now Bitcoin caro ninety five, six 0:20:52.080 --> 0:20:55.080 hundred US dollars per token. If I say this is 0:20:55.119 --> 0:20:57.680 behaving like gold and a haven asset, someone will clip 0:20:57.720 --> 0:20:59.960 it and put it on social media. So I better 0:21:00.200 --> 0:21:01.920 not say that. But that's what the writing on the 0:21:01.960 --> 0:21:05.400 Bloomberg terminal states. And as you just covered, I think 0:21:05.440 --> 0:21:08.560 Apple is really interesting. Google is out the way, and 0:21:08.600 --> 0:21:11.439 when we think about next week, it is Apple that 0:21:11.520 --> 0:21:14.439 I think we really really focus on. It answers or 0:21:14.520 --> 0:21:17.360