WEBVTT - US AI Action Plan Targets Rapid Data Center Growth 0:00:04.120 --> 0:00:08.520 Bloomberg Tech is alive from coast to coast, with Caroline 0:00:08.560 --> 0:00:12.120 Hide in New York and Ed Lavelow into then Rince's goal. 0:00:15.120 --> 0:00:18.360 This is Bloomberg Tech coming up. Tech earnings are in focus, 0:00:18.440 --> 0:00:21.360 with Texas Instruments and AT and T already out and 0:00:21.400 --> 0:00:24.560 looking to Alphabet and Tesla after the bell today, Plus 0:00:24.560 --> 0:00:25.720 the Microsoft. 0:00:25.239 --> 0:00:28.920 SharePoint hack hits the US Nuclear Weapons Agency as the 0:00:29.000 --> 0:00:32.519 tally grows of organizations breached, and the. 0:00:32.479 --> 0:00:36.159 White House unveils its AI action plan, including the promotion 0:00:36.360 --> 0:00:39.360 of a rapid buildout of data centers for AI. 0:00:39.800 --> 0:00:42.559 Meanwhile, let's check in on these markets because maybe then, 0:00:42.600 --> 0:00:44.559 as that one hundred is lagging some of the other 0:00:44.640 --> 0:00:47.839 key benchmarks today, the enthusiasm for the SMP, for the 0:00:47.920 --> 0:00:51.840 Dow post, that Japan trade deal not quite filtering through, 0:00:51.880 --> 0:00:55.000 We've got more anxiety around individual earnings that you're digging into. 0:00:55.160 --> 0:00:57.720 Currently flat on the Naskak one hundred key tech benchmark. 0:00:57.760 --> 0:00:58.440 What are you looking at? 0:00:59.200 --> 0:01:01.200 Yeah, we're kind of trying water to tonight, right, But 0:01:01.280 --> 0:01:03.320 the two earnings that are our AT and T, which 0:01:03.320 --> 0:01:06.959 is also completely flat the story. They just didn't hype 0:01:06.959 --> 0:01:09.040 themselves up as much as some of their peers had 0:01:09.040 --> 0:01:11.600 taken advantage of policy. We'll get into that in just 0:01:11.600 --> 0:01:14.720 a minute, but look at Texas Instruments down twelve point 0:01:14.760 --> 0:01:15.400 three percent. 0:01:15.800 --> 0:01:17.200 Do the math on tariffs. 0:01:17.240 --> 0:01:20.319 Maybe part of this, Carrow is that for a company 0:01:20.319 --> 0:01:23.360 that makes chips that go into basically everything, they can't 0:01:23.360 --> 0:01:24.400 do the math on tariffs. 0:01:24.440 --> 0:01:25.319 And I think that's where we go. 0:01:25.880 --> 0:01:28.720 We do because one hundred thousand customers, they couldn't tell 0:01:28.760 --> 0:01:30.800 us who is dragging inventory forward or not. 0:01:30.959 --> 0:01:32.360 In King joins us for more. 0:01:32.400 --> 0:01:34.800 And look, this is the worst fall in the stock 0:01:34.920 --> 0:01:36.360 since two thousand and eighty in. 0:01:37.800 --> 0:01:40.880 Yeah, they're having a very bad day. And it's not 0:01:41.040 --> 0:01:44.119 because the numbers are terrible, they're absolutely not. It's more 0:01:44.160 --> 0:01:46.440 of a directional thing. And it's more because, as you 0:01:46.480 --> 0:01:50.320 guys just alluded to, they're kind of pressing the wrong buttons, 0:01:50.320 --> 0:01:52.800 the fear buttons for the market right now, which is 0:01:53.360 --> 0:01:55.760 tariffs are going to have an impact. Maybe they're having 0:01:55.800 --> 0:01:59.200 an impact already. Frankly, we don't know. And that was 0:01:59.240 --> 0:02:02.840 really then of the call yesterday, and obviously analysts and 0:02:02.880 --> 0:02:05.040 investors this morning did not like that. 0:02:06.800 --> 0:02:07.000 Ian. 0:02:07.040 --> 0:02:10.440 In your interview with CFO Raphael Lazardi, he basically said 0:02:10.440 --> 0:02:12.320 this idea, right, we have all these customers in all 0:02:12.320 --> 0:02:14.440 these different domains. It's hard of us for us to 0:02:14.520 --> 0:02:17.520 keep track. But executives on the call also talked about 0:02:17.560 --> 0:02:20.520 the idea that in the current period, the order data 0:02:20.560 --> 0:02:21.400 is quite strong. 0:02:23.200 --> 0:02:25.480 Yeah, I mean the way that they described it was 0:02:25.480 --> 0:02:28.119 that it was kind of long, nonlinear, that when there 0:02:28.200 --> 0:02:30.400 was a lot of uncertainty about what was going to 0:02:30.440 --> 0:02:33.080 happen with tariffs, at the beginning of the quarter, we 0:02:33.120 --> 0:02:36.200 had a kind of a spike very strong orders, and 0:02:36.240 --> 0:02:38.880 then after that things kind of evened out a little 0:02:38.880 --> 0:02:41.720 bit more and followed normal patterns. But that is the 0:02:41.840 --> 0:02:44.400 kind of thing that analysts and investors have kind of 0:02:44.400 --> 0:02:47.600 been looking for as like a sign that this demand 0:02:47.680 --> 0:02:50.520 that we're seeing isn't real demand, that it's this inventory 0:02:50.560 --> 0:02:53.040 build up that Caroline just sort of alluded to that 0:02:53.120 --> 0:02:54.400 this kind of pulled forward. 0:02:54.840 --> 0:02:57.799 So again, the numbers were good, right. 0:02:58.080 --> 0:03:00.960 Sixteen percent then forecasting eleven percent growth. 0:03:01.200 --> 0:03:02.240 There's nothing wrong with that. 0:03:02.680 --> 0:03:05.639 The problem is that people are concerned about how much 0:03:05.639 --> 0:03:08.440 of that is real and how much of that can continue. 0:03:08.680 --> 0:03:11.600 What's the reader cross Because NXP sort of signaled this, 0:03:12.080 --> 0:03:14.240 but Texas Instruments is the Bellweather. 0:03:15.400 --> 0:03:19.720 Yeah, Texas Instruments is a more diverse company than an XP. 0:03:20.080 --> 0:03:22.800 What they have in common was auto and what Texas 0:03:22.840 --> 0:03:25.640 Instruments said about automotive, which is, as you know, one 0:03:25.639 --> 0:03:29.079 of the great hopes for the chip industry. Things haven't 0:03:29.160 --> 0:03:31.760 got better yet. We perhaps or a bit of pull 0:03:31.880 --> 0:03:34.960 forward in China. And again this is a you know, 0:03:35.000 --> 0:03:37.960 this should be turning into a positive story. This should 0:03:37.960 --> 0:03:40.880 be sort of heading upwards and making everybody smile again. 0:03:41.200 --> 0:03:43.960 And it's not right. So that as we look at 0:03:44.000 --> 0:03:47.240 other companies throughout this earnings period, companies that are trying 0:03:47.240 --> 0:03:50.600 to do well in auto, perhaps the company is like Qualcomm, 0:03:50.720 --> 0:03:54.000 which is part of the IDA versification story. People are 0:03:54.000 --> 0:03:56.760 now concerned about this area. People are now concerned more 0:03:56.800 --> 0:03:57.280 in general. 0:03:58.640 --> 0:04:00.840 Blue Magsie King, thank you very much. 0:04:01.000 --> 0:04:03.400 Another company that's out of earnings is AT and T 0:04:03.600 --> 0:04:06.360 shares have been slipping. They're now flat after the company 0:04:06.400 --> 0:04:10.680 reiterated a profit forecast that fell short of analyst estimate. Still, 0:04:10.760 --> 0:04:14.400 the company saw rapid wireless phone subscriber growth, adding four 0:04:14.480 --> 0:04:17.480 hundred and one thousand customers with the help of increased 0:04:17.520 --> 0:04:21.039 perks and incentives in the second quarter. For more Bloombers. 0:04:21.120 --> 0:04:25.080 Kelsey Griffiths is here in Washington, DC. So basically investors 0:04:25.120 --> 0:04:26.680 are saying, well, hold on a minute. One of your 0:04:26.680 --> 0:04:30.520 big rivals, Verizon big themselves up what they've been able 0:04:30.560 --> 0:04:34.320 to do because of President Trump's policies, particularly around tax i. 0:04:34.360 --> 0:04:36.760 Guess the reader cross is that they're disappointed AT and 0:04:36.800 --> 0:04:39.479 T's not doing the same thing exactly. 0:04:39.640 --> 0:04:41.760 So what we saw this Maureene is that AT and 0:04:41.800 --> 0:04:44.800 T became a bit of a victim of inflated Wall 0:04:44.800 --> 0:04:49.039 Street expectations. After a Verizon ended up posting these really 0:04:49.080 --> 0:04:54.960 good numbers, they ended up updating their full year forecast, 0:04:55.200 --> 0:04:57.240 and I think the market was kind of hoping that 0:04:57.279 --> 0:04:59.480 AT and T would do the same. Now, AT and 0:04:59.520 --> 0:05:03.719 T did adjust their numbers a bit, but it wasn't 0:05:03.760 --> 0:05:05.560 anything as dramatic as we saw a Verizon. 0:05:05.839 --> 0:05:08.599 Meanwhile, what was dramatically better than Verizon was the amount 0:05:08.640 --> 0:05:11.360 of net ads they're making in terms of phone use. 0:05:11.520 --> 0:05:13.479 Kelsey just push us forward. 0:05:13.560 --> 0:05:15.640 Therefore, on AT and T, perhaps what was baked in 0:05:15.680 --> 0:05:17.279 because these stocks have run up this year. 0:05:18.880 --> 0:05:19.360 That's right. 0:05:19.440 --> 0:05:22.280 AT and T is on a really good growth trajectory 0:05:22.480 --> 0:05:25.440 and they're seen as this pretty steady you. 0:05:25.320 --> 0:05:28.000 Know growing business. 0:05:28.040 --> 0:05:30.240 They've been investing a lot of cash into their Fiver 0:05:30.880 --> 0:05:33.919 subscriber ads, and although they were a little short of 0:05:33.960 --> 0:05:37.599 expectations this quarter, that is still an area where they're 0:05:37.640 --> 0:05:38.920 predicting massive growth. 0:05:39.640 --> 0:05:42.960 They were bullish about their commitment to investing in this country. 0:05:42.960 --> 0:05:45.039 This is a theme Caroline and I've discussed with AT 0:05:45.160 --> 0:05:47.200 and T in the past. What did the CFO say 0:05:47.240 --> 0:05:50.080 they're going to prioritize and what's the kind of level 0:05:50.120 --> 0:05:52.240 of investment that they're talking about here. 0:05:52.720 --> 0:05:55.640 That's right, So in the wake of the big beautiful bill, 0:05:56.400 --> 0:06:00.240 all companies, including Verizon and AT and T are looking 0:06:00.279 --> 0:06:03.400 to really invest in their networks. They're looking at these 0:06:03.440 --> 0:06:06.240 tax savings and kind of thinking about how they're going 0:06:06.279 --> 0:06:08.320 to spend that. For AT and T, we've heard that 0:06:08.360 --> 0:06:13.080 they're going to invest an extra billion or so in 0:06:13.920 --> 0:06:17.320 the fiber network, I believe per year. And then we're 0:06:17.320 --> 0:06:19.520 also going to see some pretty big contributions to the 0:06:19.560 --> 0:06:20.640 employee pension plan. 0:06:21.400 --> 0:06:22.040 We'll keep an eye on it. 0:06:22.160 --> 0:06:24.159 Kelsey Griffiths, we thanks so much on the wrap up 0:06:24.200 --> 0:06:25.920 on AT and T, But now let's get some other 0:06:25.960 --> 0:06:28.440 earnings context and what we expect to come after. 0:06:28.360 --> 0:06:30.120 The closing bell today. Of course it's Alphabet. 0:06:30.320 --> 0:06:33.440 Brad Ericsson, internet analyst that obviously Capital Markets joins us 0:06:33.480 --> 0:06:35.680 now and you've got I think it's about a two 0:06:35.760 --> 0:06:36.760 hundred dollars price. 0:06:36.560 --> 0:06:38.560 Tag outperform on Alphabet. 0:06:38.920 --> 0:06:41.040 How can they live up to the prior to this 0:06:41.120 --> 0:06:44.240 day ten day run up, a longest winning streak for 0:06:44.240 --> 0:06:46.360 Alphabet that we've seen since twenty ten. 0:06:46.520 --> 0:06:46.839 Rat. 0:06:48.200 --> 0:06:51.680 Yeah, there's a couple of kind of cross current things 0:06:51.720 --> 0:06:54.720 going on. I think first on the fundamental side, we're 0:06:54.760 --> 0:06:56.920 going to see really good numbers our checks through the quarter. 0:06:56.960 --> 0:07:00.320 We're fairly strong, and I do expect them to print 0:07:00.360 --> 0:07:03.520 upside tonight. So I think that's kind of why you've 0:07:03.520 --> 0:07:06.120 seen the market price that in a little bit and 0:07:06.440 --> 0:07:08.119 run the stock up here in front of the print 0:07:08.800 --> 0:07:12.320 off setting that maybe not quite as good from a 0:07:12.400 --> 0:07:15.560 from a forward set of perspective, is that once they 0:07:15.600 --> 0:07:18.800 print numbers tonight, say what they say, then we've got 0:07:18.840 --> 0:07:21.520 to sit around and wait two three four weeks for 0:07:21.600 --> 0:07:24.520 this regulatory decision out of the judge that the obviously 0:07:24.720 --> 0:07:27.760 will we'll scare some people, so and let's. 0:07:27.640 --> 0:07:30.040 Just think about that regulatory overhang. And we love reading 0:07:30.080 --> 0:07:32.880 your notes and really we're talking about how this is 0:07:32.920 --> 0:07:36.480 a strong fundamentally company but challenged thematically in a waiting 0:07:36.520 --> 0:07:40.280 regulatory wild card. We await what Judge Meta says in August. 0:07:40.520 --> 0:07:44.680 But when you think about the challenge thematically, any numbers 0:07:44.720 --> 0:07:46.120 that you're going to be looking at that would tell 0:07:46.160 --> 0:07:48.840 you that there is competition in terms of search that 0:07:49.000 --> 0:07:51.720 CHATCHBT is eating in to their breadwinner. 0:07:53.920 --> 0:07:56.440 Yeah, I mean they'll they'll obviously again, they'll print the 0:07:56.480 --> 0:07:58.760 numbers tonight. I do expect them to be good and 0:07:58.840 --> 0:08:01.960 so just objectively on that piece of it, I think 0:08:01.960 --> 0:08:04.600 they'll have a really strong case and story to tell 0:08:04.600 --> 0:08:05.720 on the conference. 0:08:05.320 --> 0:08:08.320 Call around why AI is good for their business. 0:08:08.560 --> 0:08:11.480 They're not going to directly address sort of the competitive threats, 0:08:11.720 --> 0:08:13.640 but they will definitely be I think in a good 0:08:13.680 --> 0:08:17.200 position tonight to position AIS as sort of nothing but 0:08:17.280 --> 0:08:19.680 a good thing for the business. 0:08:20.120 --> 0:08:22.760 But yeah, I think the point of our note was 0:08:23.600 --> 0:08:24.520 the numbers will be good. 0:08:24.600 --> 0:08:26.560 They can say what they want, but the reality is, 0:08:26.600 --> 0:08:29.680 so long as you know chat GPT, Perplexity, anthropic, there's 0:08:29.680 --> 0:08:32.719 a number of companies that are really making a lot 0:08:32.720 --> 0:08:35.440 of headway on the AI front. Everyone's well aware of 0:08:36.240 --> 0:08:40.480 that bare case that AI narrative against Google's core business 0:08:40.880 --> 0:08:43.360 is not going anywhere for the foreseeable future. 0:08:44.440 --> 0:08:44.600 Right. 0:08:44.640 --> 0:08:47.640 The technology story I see is quite simple. How does 0:08:47.840 --> 0:08:51.439 the Gemini model become more embedded across all of Google's business? 0:08:52.040 --> 0:08:54.160 But I guess i'd love to know where you want 0:08:54.200 --> 0:08:57.040 to see it show up in the financial results to 0:08:57.080 --> 0:08:58.880 give you faith that the payoff is there. 0:09:00.480 --> 0:09:03.160 Yeah, you know, I think the most important piece and 0:09:03.240 --> 0:09:03.600 it's not. 0:09:04.040 --> 0:09:07.800 I don't think it gets enough focus. Is Gemini the model? 0:09:07.960 --> 0:09:08.240 Right? 0:09:08.480 --> 0:09:10.920 Partially, it's just because of the brand. People have learned 0:09:10.920 --> 0:09:14.520 the name. It's obviously driving the Gemini app, and that 0:09:14.640 --> 0:09:18.880 is important. Where we're actually really focused is certainly on 0:09:18.960 --> 0:09:19.800 AI overviews. 0:09:19.880 --> 0:09:22.640 But bringing Gemini to AI mode, I call it the 0:09:22.960 --> 0:09:25.239 my mom test. Right when my mom. 0:09:25.040 --> 0:09:27.560 Is suddenly using some of these tools, we know they're 0:09:27.600 --> 0:09:30.760 really hitting sort of broad based. In fairness, my mom 0:09:30.800 --> 0:09:32.800 doesn't do a lot with technology, So there it is. 0:09:32.840 --> 0:09:36.000 But the point is that if you're spoon feeding AI 0:09:36.160 --> 0:09:39.320 mode to people that would ultimately just be coming to 0:09:39.360 --> 0:09:42.480 Google for normal purposes, and you've got the power of 0:09:42.520 --> 0:09:45.760 a really solid set of Gemini models, that's where I 0:09:45.800 --> 0:09:49.040 think it becomes to a bigger and bigger tailwind. 0:09:48.679 --> 0:09:49.680 For these guys. 0:09:50.520 --> 0:09:50.840 Brad. 0:09:50.840 --> 0:09:53.680 We got the White House's AI action plan this morning, 0:09:53.679 --> 0:09:56.680 twenty three pages. I printed it out for you, so 0:09:56.840 --> 0:09:59.439 for some light reading. Later in the program, we'll get 0:09:59.440 --> 0:10:01.640 into the detail and the politics of it. But the 0:10:01.640 --> 0:10:04.599 simple question is whether or not Alphabet is going to 0:10:04.640 --> 0:10:08.640 be a beneficiary of what this administration wants America to 0:10:08.679 --> 0:10:09.280 do in AI. 0:10:09.400 --> 0:10:10.319 Do you think it will be. 0:10:13.120 --> 0:10:15.720 Generally yes, But I do think there's going to be 0:10:16.480 --> 0:10:21.040 more and more attention paid to how sort of equitable 0:10:21.280 --> 0:10:24.920 the value distribution is of AI. I think that's something 0:10:24.960 --> 0:10:26.920 we spend a lot of time thinking about these days, 0:10:26.920 --> 0:10:29.760 which is, I think if you look at the parts 0:10:29.800 --> 0:10:32.360 and pieces of what we know of AI today, it 0:10:32.360 --> 0:10:34.960 would suggest that a lot of the value could accrue 0:10:35.040 --> 0:10:38.080 to only a very few number of companies. And I 0:10:38.080 --> 0:10:40.360 don't think that's going to work bigger picture from a 0:10:40.400 --> 0:10:42.079 regulatory perspective. 0:10:41.760 --> 0:10:44.600 And the reason we like Google in that perspective is. 0:10:44.840 --> 0:10:48.840 Google is the distributor of traffic right the biggest one 0:10:48.880 --> 0:10:51.080 on the Internet, and I don't see that changing, and 0:10:51.120 --> 0:10:53.599 so I actually think that plays quite well into the 0:10:53.640 --> 0:10:55.800 regulatory framework going forward. 0:10:56.320 --> 0:10:59.600 Let's go to regulatory overhang just the last case though, Brad, 0:10:59.640 --> 0:11:02.360 because that is the cloud you signal coming in August. 0:11:02.800 --> 0:11:03.520 What do you brace for. 0:11:03.880 --> 0:11:06.840 Do you think Judge Meta would break up the company? 0:11:08.640 --> 0:11:10.400 Shorty answer is we don't. We don't think so. 0:11:10.840 --> 0:11:12.480 I think that we have we ascribe kind of a 0:11:12.520 --> 0:11:15.000 lower probability to that. But there's sort of two or 0:11:15.040 --> 0:11:17.400 three things we think about. Number one is you're not 0:11:17.440 --> 0:11:19.760 going to be able to pay for placement nd fall search. 0:11:19.800 --> 0:11:22.199 We're pretty certain that's that's that is going away. 0:11:22.880 --> 0:11:26.080 Two, there could be some some sort of opening up 0:11:26.120 --> 0:11:29.880 the kimono on data that Google has to competitors. We 0:11:29.920 --> 0:11:32.480 actually don't think that matters that much, but that could 0:11:32.520 --> 0:11:34.680 certainly play out. And then the third one is the 0:11:34.720 --> 0:11:38.679 divest at your potential of Chrome, and there are stances. 0:11:39.160 --> 0:11:42.520 You know, Chrome's not a business, it's a product. I 0:11:42.559 --> 0:11:45.600 think the maybe the dj comments sort of ignored that 0:11:45.679 --> 0:11:50.120 piece in their aspirations to have that piece of it removed, 0:11:50.400 --> 0:11:53.840 and so ultimately you can they could force them to 0:11:53.840 --> 0:11:57.560 do that. It's certainly possible, but then you're introducing a 0:11:57.720 --> 0:12:02.439 whole other set of issues, as we've seen Perplexity, open AI, 0:12:02.559 --> 0:12:05.600 all these companies talking about opening browsers right, it's clearly 0:12:05.600 --> 0:12:07.240 going to be very important for distribution. 0:12:07.960 --> 0:12:11.280 Seems incredibly arbitrary to sort of. 0:12:11.200 --> 0:12:14.320 Hand away Google's browser in the hands of another when 0:12:14.320 --> 0:12:16.320 they're saying that is going to be critical to the 0:12:16.320 --> 0:12:18.160 technology innovation here for the future. 0:12:18.200 --> 0:12:20.720 It would just be handing value away. So we see 0:12:20.760 --> 0:12:22.280 low likelihood of that happening. 0:12:23.880 --> 0:12:27.040 Brad ericson RBC Capital Markets into the analysts, pushing ahead 0:12:27.040 --> 0:12:28.680 to alphabet after the bell, thank you. 0:12:28.720 --> 0:12:30.320 The other name after the bell is Tesla. 0:12:30.600 --> 0:12:33.199 This is a stock that's down seventeen percent year to date, 0:12:33.280 --> 0:12:35.400 it's up half a percent in the moment, and the 0:12:35.480 --> 0:12:39.080 data carro is like probably biggest dropping revenue for a 0:12:39.120 --> 0:12:42.000 decade year on year, but the street probably looking past 0:12:42.040 --> 0:12:43.959 that because it's not about selling cars anymore. 0:12:44.280 --> 0:12:46.920 It's not it's about one man really and his vision. 0:12:47.000 --> 0:12:50.120 And let's just stick with Elon and Elon's enpart because actually, look, 0:12:50.240 --> 0:12:53.000 you took a look at the language the fine print 0:12:53.040 --> 0:12:55.400 included in the tender off of this going on for SpaceX, right, 0:12:55.440 --> 0:12:57.920 and you notice that there's a new little warning just 0:12:57.960 --> 0:13:01.080 tucked in there about his potential to get more involved 0:13:01.120 --> 0:13:01.680 in politics. 0:13:02.800 --> 0:13:05.280 Yeah, so what we saw was the risk factors section 0:13:05.520 --> 0:13:08.480 in the tender documents that valued SpaceX at four hundred 0:13:08.480 --> 0:13:11.160 billion dollars. Right, and this is what it literally says. 0:13:11.200 --> 0:13:13.960 It acknowledges that Musk was previously a senior advisor to 0:13:13.960 --> 0:13:14.760 President Trump. 0:13:14.559 --> 0:13:15.559 As part of DOGE. 0:13:15.720 --> 0:13:18.200 But also this is the key bit, may in the 0:13:18.240 --> 0:13:21.520 future serve in similar roles in devote significant time and 0:13:21.679 --> 0:13:24.840 energy to such roles. The reason that's important right now 0:13:24.840 --> 0:13:28.080 and analogous to Tesla, is that Tesla investors are also 0:13:28.160 --> 0:13:30.520 saying all we need to hear is that Musk is 0:13:30.559 --> 0:13:33.680 committed to the company and other companies, not necessarily what 0:13:33.720 --> 0:13:35.720 his political beliefs. So I think that's kind of what 0:13:35.760 --> 0:13:36.439 we're watching for. 0:13:36.559 --> 0:13:38.199 And look, he's been trying to signal that on X 0:13:38.320 --> 0:13:41.280 right he's sleeping, eating, repeating work. 0:13:41.240 --> 0:13:43.559 Amid a little bit of like childcare. 0:13:44.840 --> 0:13:47.680 Yeah, seven days a week back at the company. But 0:13:47.679 --> 0:13:50.400 there's this big overhang about the America Party, and people 0:13:50.440 --> 0:13:53.040 on X are saying, will he even address the America 0:13:53.080 --> 0:13:55.280 Party thing during Tesla's earnings calls. 0:13:55.360 --> 0:13:56.679 That's the state of play right now. 0:13:56.760 --> 0:13:59.840 Yeah, Well, we keep our eyes on it. More coming 0:13:59.920 --> 0:14:05.800 up up right now on the Microsoft SharePoint TCAD. It's widening. 0:14:09.320 --> 0:14:09.440 Now. 0:14:09.480 --> 0:14:12.360 The number of companies and organizations that have been breached 0:14:12.400 --> 0:14:15.120 by the hack on Microsoft's SharePoint has going to about 0:14:15.160 --> 0:14:18.360 four hundred entities now, but it's according to Bloomberg reporting 0:14:18.400 --> 0:14:21.040 that this includes the US National Nuclear. 0:14:20.680 --> 0:14:24.120 Security Administration, which of course oversees the design of nuclear weapons. 0:14:24.360 --> 0:14:27.600 For more, Bloomberg's Jake Bleiberg joins us and just how 0:14:27.960 --> 0:14:29.240 extreme are these hacks? 0:14:29.280 --> 0:14:31.440 What sort of information do we understand that they've managed 0:14:31.440 --> 0:14:31.800 to gather? 0:14:32.320 --> 0:14:35.680 So we're still learning about what they're gathering, and it's 0:14:35.720 --> 0:14:36.800 a hard question to answer. 0:14:36.840 --> 0:14:37.720 In a lot of cases. 0:14:38.000 --> 0:14:40.720 The thing we know they've taken in at least some 0:14:40.760 --> 0:14:47.160 instances are signing credentials, user names, passwords, other information that's 0:14:47.280 --> 0:14:51.200 used to secure systems. And that's particularly concerning because it 0:14:51.240 --> 0:14:54.400 means the hackers can potentially branch out from what the 0:14:54.920 --> 0:14:58.360 one system they got into here, Jake. 0:14:58.440 --> 0:15:01.640 When Bloomberg break the storyline last night about this particular 0:15:01.720 --> 0:15:05.320 agency being hacked that is responsible for the development and 0:15:05.400 --> 0:15:10.440 disposal of nuclear weapons, understandably, loads of Americans on social 0:15:10.520 --> 0:15:11.120 media were like. 0:15:11.160 --> 0:15:13.240 What on earth are we in trouble? 0:15:13.960 --> 0:15:15.920 Do we know the limits of what the hackers were 0:15:15.920 --> 0:15:18.640 able to gather what is the agency's response. I think 0:15:18.640 --> 0:15:20.480 it's a time where we just like, here's the reality 0:15:20.480 --> 0:15:21.120 of the situation. 0:15:21.480 --> 0:15:27.280 So what are reporting shows so far is that there 0:15:27.400 --> 0:15:32.480 wasn't sensitive or classified information taken from this nuclear agency, 0:15:33.040 --> 0:15:37.160 and that the classified information within it and most other 0:15:37.200 --> 0:15:41.400 government agencies is sort of sectioned off from the type 0:15:41.400 --> 0:15:46.040 of system that was easily breached in this attack. However, 0:15:46.240 --> 0:15:49.360 as I just mentioned, one of the concerns here is 0:15:49.400 --> 0:15:52.000 that once the hackers get in, they may be able 0:15:52.040 --> 0:15:54.080 to branch out and burrow in elsewhere. 0:15:54.480 --> 0:15:57.480 Now, what's interesting is the number of agencies in companies 0:15:57.520 --> 0:16:00.960 and entities has been identified by Dutch cyber company at 0:16:00.960 --> 0:16:04.200 the moment, this one being I Security. They're saying it's 0:16:04.240 --> 0:16:08.320 largely US based, but actually very international. What has Microsoft 0:16:08.320 --> 0:16:10.680 been identifying? They've of course told us who pers actually 0:16:10.720 --> 0:16:12.800 the hackers are, but how are they keeping us abreast 0:16:12.800 --> 0:16:13.000 of this? 0:16:13.320 --> 0:16:17.720 So Microsoft has told us that at least two Chinese 0:16:18.000 --> 0:16:21.960 state backed hacking groups are behind some of these attacks, 0:16:22.000 --> 0:16:25.320 and that there's another group based in China that is 0:16:25.360 --> 0:16:29.880 carrying out attacks to what we know is that the 0:16:29.920 --> 0:16:32.800 servers that were made vulnerable by this attack, for the 0:16:33.040 --> 0:16:37.160 common micro or soft software SharePoint are spread out all 0:16:37.200 --> 0:16:40.800 over the globe, and that the number that we're potentially 0:16:40.920 --> 0:16:43.680 vulnerable is in the thousand, it's not the hundreds. 0:16:43.960 --> 0:16:45.400 So the scope of this is. 0:16:45.360 --> 0:16:48.800 Really something that's still coming into view. And you know, 0:16:48.920 --> 0:16:52.240 Microsoft up to now has not told us how many 0:16:52.280 --> 0:16:55.800 of their customers have experienced breaches, Jake. 0:16:55.920 --> 0:16:59.360 Many Microsoft customers watch this program, many Microsoft employees watch 0:16:59.400 --> 0:17:02.640 this program. What has Microsoft told us in terms of 0:17:02.680 --> 0:17:04.280 their response and how they're handling it. 0:17:04.600 --> 0:17:09.280 So Microsoft moved quite quickly to roll out patches to 0:17:09.560 --> 0:17:11.960 this vulnerability once they became. 0:17:11.760 --> 0:17:12.360 Aware of it. 0:17:12.440 --> 0:17:16.040 They rolled out a patch over the weekend and more 0:17:16.520 --> 0:17:19.520 during the week to sort of try to close this 0:17:19.640 --> 0:17:20.920 door and keep it shut. 0:17:21.320 --> 0:17:23.200 But what we've heard from other. 0:17:23.080 --> 0:17:27.000 Security researchers is that once the hackers are in, you're 0:17:27.040 --> 0:17:30.119 still potentially vulnerable. Closing the door once they're in the 0:17:30.119 --> 0:17:33.960 house doesn't solve your problems, and that really requires sort 0:17:33.960 --> 0:17:36.640 of continuing to search and understand did we. 0:17:36.600 --> 0:17:37.240 Get hit. 0:17:38.680 --> 0:17:41.080 Bloombergs Jake Bleiberg with ongoing reporting. 0:17:41.119 --> 0:17:42.000 Thank you very much. 0:17:47.600 --> 0:17:50.359 It's time now for talking tech and first up, Uber 0:17:50.600 --> 0:17:52.880 is testing a ride option in the un The match 0:17:52.920 --> 0:17:55.440 is female riders and drivers now. The safety feature is 0:17:55.480 --> 0:17:58.800 already available in some international markets. The pilot will launch 0:17:58.840 --> 0:18:00.840 in Los Angeles, San Fransle, us Go, and Detroit in 0:18:00.880 --> 0:18:01.639 the next few weeks. 0:18:01.840 --> 0:18:04.040 Has long been offered by Lyft Plus. 0:18:04.119 --> 0:18:07.760 Sonos has named interim leader Tom Conrad as chief executive officer. 0:18:07.960 --> 0:18:10.280 The appointment is a vote of confidence in his effort 0:18:10.320 --> 0:18:13.360 to get the struggling audio company back on track after 0:18:13.400 --> 0:18:16.399 a disastrous software launch that hurts sales and force the 0:18:16.400 --> 0:18:17.760 company to layoff workers. 0:18:18.480 --> 0:18:20.800 And the UK's antitrust watchdog. 0:18:20.520 --> 0:18:24.320 Is proposing giving Apple and Google's Android so called strategic 0:18:24.440 --> 0:18:27.159 market status now. The move would pave the way for 0:18:27.200 --> 0:18:30.280 regulation of their mobile operating systems, app stores and mobile 0:18:30.359 --> 0:18:31.359 web browsers. 0:18:31.720 --> 0:18:35.399 Ed a stick with Apple, it's launching a new version 0:18:35.440 --> 0:18:38.920 of its device insurance plan Apple Care. The new twenty 0:18:38.920 --> 0:18:41.920 dollars a month plan can cover up to three devices. 0:18:41.960 --> 0:18:45.760 Bloomberg Sam Kelly has the details. So often have I 0:18:45.800 --> 0:18:48.640 tapped into Apple Care having dropped this thing on the floor? 0:18:49.000 --> 0:18:51.280 What's new about it? Why are they updating it? 0:18:51.960 --> 0:18:52.160 HI? 0:18:52.240 --> 0:18:52.720 Good morning? 0:18:52.800 --> 0:18:53.040 Yeah. 0:18:53.080 --> 0:18:56.760 So, basically, this new twenty dollars a month subscription allows 0:18:56.760 --> 0:18:59.800 you to have three different devices of any different base. 0:19:00.000 --> 0:19:00.679 And also you could have. 0:19:00.680 --> 0:19:03.399