WEBVTT - Microsoft's AI-Powered Bing and Arm's Revenue Increase 0:00:13.240 --> 0:00:16.479 I'm Caroline hired Bloomberg's World headquarters in New York, and 0:00:16.520 --> 0:00:19.759 I'm Lovo in San Francisco. This is Bloomberg Technology risk 0:00:19.840 --> 0:00:22.599 On in the markets AI A driver and no surprise 0:00:22.680 --> 0:00:26.799 Caroline from Power No surprise markets risk on. But having 0:00:26.840 --> 0:00:30.360 noticed all these chatbots, from Bernie to Being to of 0:00:30.360 --> 0:00:32.760 course barred over at Google, they're all named for a 0:00:32.800 --> 0:00:34.560 B we get into that in a moment. But let's 0:00:34.560 --> 0:00:36.880 get into the race first and foremost, the AI race. 0:00:37.000 --> 0:00:39.240 It is on end from Microsoft to Google to Baidu. 0:00:39.560 --> 0:00:42.519 We've been in the latest global generative AI developments and 0:00:42.560 --> 0:00:45.360 speak to a kid executive from Microsoft on its big 0:00:45.600 --> 0:00:49.479 being announcement and honing in on the chip industry arm 0:00:49.560 --> 0:00:53.760 posting increase in revenue in its latest quarter. We speak 0:00:53.800 --> 0:00:56.520 with the CEO of the company as it prepares what 0:00:56.640 --> 0:00:59.560 parents soft Bank hopes will be the largest ever I 0:00:59.640 --> 0:01:03.200 p O for a chip maker, plus zoom slashing of 0:01:03.200 --> 0:01:06.200 its workforce while metal ones managers to get back to 0:01:06.319 --> 0:01:09.679 making things or leave all that and so much more 0:01:09.760 --> 0:01:12.720 coming up at first. Soft Bank get posted its earnings, 0:01:12.760 --> 0:01:15.480 losing nearly six billion dollars in the most recent quarter, 0:01:15.760 --> 0:01:18.280 failed to start up bets and its Vision Fund segment. 0:01:18.600 --> 0:01:22.080 But the silver lining the conglomerate has in its arsenal, 0:01:22.120 --> 0:01:25.200 it's its ownership of ARM. The UK based company's chip 0:01:25.280 --> 0:01:29.039 designs and its technology are present throughout consumer electronics. Just 0:01:29.080 --> 0:01:32.080 think the chips that are powering almost every single smartphone 0:01:32.080 --> 0:01:34.280 on the planet, or the designs come from ARM And 0:01:34.319 --> 0:01:36.800 just reported a twenty percent increase in revenue for the 0:01:36.880 --> 0:01:40.360 latest quarter. It's preparing, we understand, for a highly anticipated 0:01:40.400 --> 0:01:42.520 I p O this year. That's why we are so 0:01:42.560 --> 0:01:45.080 pleased to welcome the CEO. Ren A House is joy 0:01:45.120 --> 0:01:47.000 to have you with us. Just talk to us about 0:01:47.000 --> 0:01:50.680 this twenty eight percent increase in revenue because we've seen 0:01:50.920 --> 0:01:54.760 overall the chip sector be somewhat decimated, the demand supply 0:01:54.920 --> 0:01:58.680 flip reversing, and yet you manage to be pushing higher 0:01:58.760 --> 0:02:02.280 when your clients are four. What's happening. We're very happy 0:02:02.320 --> 0:02:05.320 with the quarter that we've just had. Our revenue was up. 0:02:06.560 --> 0:02:10.440 We saw an increase of our licensing business and twelve 0:02:10.440 --> 0:02:14.120 percent and royalties. But more importantly, we've seen a significant 0:02:14.160 --> 0:02:19.160 diversification in our business. Caroline are business around the cloud 0:02:20.040 --> 0:02:23.600 has been up double double digits. Our business and automotive 0:02:23.960 --> 0:02:27.919 probably triple digits. Uh. This diversification strategy is not new. 0:02:28.000 --> 0:02:30.400 We started a number of years ago, but we're just 0:02:30.480 --> 0:02:32.560 now starting to see the fruits of that labor as 0:02:33.160 --> 0:02:35.200 the power efficiency at which ARM is known for is 0:02:35.240 --> 0:02:37.640 stinding its way into the data center and all evs. 0:02:38.080 --> 0:02:40.160 Can you give us some targets around the focus on 0:02:40.280 --> 0:02:44.400 data center's automotive pecs rather than just a smartphone sector. 0:02:45.720 --> 0:02:49.480 You know, these areas are places where the growth has 0:02:49.520 --> 0:02:51.359 been very significant in the last number of years, and 0:02:51.400 --> 0:02:53.919 we made a very conscious decision to focus on these 0:02:53.919 --> 0:02:57.640 new markets, particularly with new products are Neo verse flying 0:02:57.720 --> 0:03:01.560 for servers, adding functional safety to our automotive products, and 0:03:01.680 --> 0:03:03.760 as a result, we've seen a huge benefit from that. 0:03:04.480 --> 0:03:07.600 Every major cloud provider now has ARM instances in the 0:03:07.720 --> 0:03:11.679 cloud aws forty eight out of their top fifty customers 0:03:11.800 --> 0:03:15.440 are able to use ARM and electronic vehicles. We're seeing 0:03:15.480 --> 0:03:19.880 companies such as st Renaissance, Mobile, I and Video all 0:03:19.919 --> 0:03:23.720 shifting silicon into automotive Renne, good afternoon to you. Look, 0:03:23.800 --> 0:03:26.120 as Caroline said, you bucked the trend. I want to 0:03:26.160 --> 0:03:28.519 dig into this idea of how you continue to grow 0:03:29.160 --> 0:03:31.519 when your customers don't is this an issue of lag 0:03:32.000 --> 0:03:33.959 that what the rest of the chip sector is going 0:03:34.000 --> 0:03:37.960 through you are not yet experiencing, but will experience later 0:03:38.080 --> 0:03:40.360 on in the year. We're no different than the rest 0:03:40.400 --> 0:03:43.160 of the industry. We certainly feel the effects of the 0:03:43.200 --> 0:03:47.040 slowdown in certain markets, but we are buffered to some extent. 0:03:47.160 --> 0:03:50.000 As I said, we've seen significant growth by gaining market 0:03:50.120 --> 0:03:55.320 share in the cloud, gaining market share in automotive, in smartphones, 0:03:55.440 --> 0:03:57.560 where it's been well documented there's been a slowdown of 0:03:57.600 --> 0:04:00.520 that industry, we've actually seen some very good results, and 0:04:00.640 --> 0:04:03.280 that's been due to kind of two main factors. One 0:04:03.440 --> 0:04:06.480 is our version nine architecture, which carries a higher royalty rate, 0:04:06.520 --> 0:04:09.640 which needs more value for us. But also, more importantly, 0:04:09.760 --> 0:04:13.680 we're just seeing more technology inside these smartphones. More processors 0:04:13.800 --> 0:04:15.480 that find their ways into all different areas of the 0:04:15.520 --> 0:04:19.800 application space, means more CPUs inside the smartphone, which again 0:04:19.920 --> 0:04:22.520 means more royalties for us. So we've been able to 0:04:22.560 --> 0:04:24.920 be buffered to some extent in that space and seeing 0:04:24.960 --> 0:04:29.680 growth really across all our markets. Okay, how confident are 0:04:29.760 --> 0:04:34.000 you that those outliers of performance that you have just 0:04:34.120 --> 0:04:39.280 flags can continue throughout calendar twenty three? You know who 0:04:39.400 --> 0:04:42.000 to be really competent these days in terms of predicting 0:04:42.040 --> 0:04:43.720 where the market is going to go at that we're 0:04:43.920 --> 0:04:47.040 very confident in the long term secular trends that are 0:04:47.080 --> 0:04:50.040 good for ARM and that is number one, more compute 0:04:50.720 --> 0:04:54.159 and number two that is more power efficient compute. Again, 0:04:54.200 --> 0:04:55.960 when you look at the data center, when you look 0:04:55.960 --> 0:04:58.720 at automotive, these are areas that really need a high 0:04:58.760 --> 0:05:01.520 degree of compute, They need a high degree of power efficiency. 0:05:01.960 --> 0:05:04.400 You know, another number that really surprised folks last quarter 0:05:04.680 --> 0:05:08.159 was a record number of shipments by the ARMED partners. 0:05:08.360 --> 0:05:11.800 Eight billion ships that were shipped by our partners, and 0:05:11.920 --> 0:05:14.040 that feeds a cycle of more and more people who 0:05:14.040 --> 0:05:17.160 are developing software on those eight billion ships, which feeds 0:05:17.200 --> 0:05:20.159 into more demand. So I think the quarter to quarter 0:05:20.200 --> 0:05:22.560 of proturbations, you're always going to see those relative to 0:05:22.600 --> 0:05:25.680 what's going on with inventory and such. But we are 0:05:26.160 --> 0:05:28.520 very confident that the long term secular trends that we're 0:05:28.520 --> 0:05:31.840 seeing in the industry are very good for us. Someone 0:05:31.880 --> 0:05:35.160 else is confident around you on its soft bank, the 0:05:35.279 --> 0:05:37.080 confident that the I p O will be done by 0:05:37.160 --> 0:05:40.440 this year. Are you doing a jewel approaches in London? 0:05:40.520 --> 0:05:42.640 New York. Do you have a time frame for US? 0:05:43.920 --> 0:05:45.839 I can say that we are fully committed to an 0:05:45.880 --> 0:05:48.480 I p O in There has been a lot of 0:05:48.520 --> 0:05:50.680 planning underway already on this. We've been doing a lot 0:05:50.720 --> 0:05:55.480 of work regarding location, listening venue. I can't talk about that. 0:05:55.600 --> 0:05:58.600 Noticisions have been made there yet. What needs to be 0:05:58.720 --> 0:06:02.600 cleared up? Tease crossed, eyes dotted when it comes to 0:06:02.640 --> 0:06:05.120 a relationship, for example, with Qualcom ahead of the initial 0:06:05.160 --> 0:06:07.640 public offering. Of course, there's been dispute there one of 0:06:07.680 --> 0:06:10.400 your key clients. How is that progressing? You know, I 0:06:10.480 --> 0:06:13.320 can't comment on the litigation there. Carolina had to lead 0:06:13.360 --> 0:06:15.280 it up to our legal team. You know. I can 0:06:15.400 --> 0:06:17.680 say though that we are very competent in the case 0:06:18.520 --> 0:06:23.080 and we think the court will ultimately agree with our position. Ready, 0:06:23.080 --> 0:06:25.200 I want to talk about China a little bit. You know, 0:06:25.480 --> 0:06:29.520 ARM is all about the underlying technology, the intellectual property 0:06:29.680 --> 0:06:34.000 chip designs. How impacted are you by US and Allied 0:06:34.120 --> 0:06:38.480 efforts to cut China off to access to the latest 0:06:38.600 --> 0:06:44.680 in chip technology? Like any other company, we comply with 0:06:44.960 --> 0:06:48.520 whatever the US government comes down with visa the export controls, 0:06:49.480 --> 0:06:52.600 because we actually don't make anything physical that is what 0:06:52.760 --> 0:06:55.960 we deliver as intellectual property. I either the license rates 0:06:56.040 --> 0:06:58.760 to build a product with our designs were now so 0:06:58.960 --> 0:07:01.839 directly impacted by some of the recent rulings which really 0:07:01.920 --> 0:07:05.680 impact more people who are actually building the chips, either 0:07:05.839 --> 0:07:09.520 chip companies or or fab equipment makers or the fabs themselves. 0:07:09.640 --> 0:07:12.840 So we have some level of indirect impact, and we 0:07:12.920 --> 0:07:15.080 comply whenever there's something that we need to comply with 0:07:15.200 --> 0:07:18.200 these a lat of course, but given where we should 0:07:18.240 --> 0:07:20.640 in the value chain, not so directly impacted some of 0:07:20.680 --> 0:07:25.040 the other companies might be. As we discussed, your technology 0:07:25.160 --> 0:07:28.920 is present through so much that goes into consumer electronics. 0:07:29.280 --> 0:07:31.720 Your designs are sort of integral to the chips are 0:07:31.720 --> 0:07:35.400 going smartphones. But the hot topic the area in vogue 0:07:35.480 --> 0:07:39.160 is artificial intelligence. Is ARM competitive in that field in 0:07:39.320 --> 0:07:42.120 terms of the chips that it's designing, and I know 0:07:42.280 --> 0:07:44.720 that you work closely with some big tech names that 0:07:44.800 --> 0:07:48.080 are doing more in house chips in this area. Yeah, 0:07:48.640 --> 0:07:50.880 I'd like to say we're far more than competitive. You know, 0:07:50.920 --> 0:07:53.800 there's a lot of AI that runs on ARM already. 0:07:55.120 --> 0:07:57.680 When you think about inference at the edge and any 0:07:57.760 --> 0:08:00.680 kind of artificial intelligence that's being run there that's all 0:08:00.760 --> 0:08:04.120 being running armed. They're being running armed CPUs. Uh. There's 0:08:04.160 --> 0:08:05.720 been a lot of buzz you know, in the industry 0:08:05.760 --> 0:08:10.000 and certainly even today regarding generative AI and chat GPT 0:08:10.160 --> 0:08:14.080 and such. That's gonna mean even more demand for armed technology. 0:08:14.200 --> 0:08:15.880 You know, when you look at the trade offs between 0:08:15.880 --> 0:08:18.400 the workloads that run on the CPU and the workloads 0:08:18.440 --> 0:08:21.360 that run on accelerators, there's room for some of this 0:08:21.440 --> 0:08:24.760 acceleration to take place in both areas. I think the 0:08:24.840 --> 0:08:26.840 area where we're going to really perform well in this 0:08:26.920 --> 0:08:31.360 space again, it's around power efficiency. These new AI algorithms 0:08:31.360 --> 0:08:34.400 are incredibly compute intensive, and in a world where we 0:08:34.480 --> 0:08:36.559 just don't have that much energy to throw with the problem, 0:08:36.960 --> 0:08:39.880 having energy efficient processors to assist and offload is going 0:08:39.960 --> 0:08:43.480 to be critically important. Rene haasom CEO. We look forward 0:08:43.520 --> 0:08:45.800 to that i p O that Jill committed to at 0:08:45.880 --> 0:08:57.920 some point this year. The big reveal today Microsoft announcing 0:08:57.960 --> 0:09:02.000 it's utilizing open AI technology power new versions of it's 0:09:02.040 --> 0:09:05.360 being Search Engine and Edge Browser. But pleased to dig 0:09:05.440 --> 0:09:08.040 into this now use of medies with us Microsoft Corporate 0:09:08.160 --> 0:09:10.640 vice president of Modern Life and Devices Group, and has 0:09:10.679 --> 0:09:12.920 been a busy day and just how busy has it 0:09:13.000 --> 0:09:15.040 been in terms of sign ups? There's a wait list 0:09:15.120 --> 0:09:18.520 to access to start using being in this way. What's 0:09:18.559 --> 0:09:21.200 the reaction been like use? Yeah, it's it's early days, 0:09:21.240 --> 0:09:23.400 but it's already or early hour, as I should say. 0:09:23.800 --> 0:09:25.599 There's a lot of sign up interests. I'm getting a 0:09:25.640 --> 0:09:27.280 lot of emails from people who want to get in 0:09:27.360 --> 0:09:29.400 front of the wait list. But I think we've struck 0:09:29.440 --> 0:09:31.719 a nerve. I think we actually have um kind of 0:09:31.800 --> 0:09:34.560 lit up people's imagination about what's possible with a new 0:09:34.600 --> 0:09:38.760 generation of search by infusing AI and chat and then 0:09:39.000 --> 0:09:41.240 getting to a place where you don't just get search results, 0:09:41.280 --> 0:09:43.760 but you can actually get answers to your questions. And 0:09:43.840 --> 0:09:45.679 I think it's struck a chord so far. So we're 0:09:45.679 --> 0:09:48.520 pretty excited about it. Struck a nerve as an interesting, 0:09:49.040 --> 0:09:51.480 interesting way of saying it, because it feels like you've 0:09:51.480 --> 0:09:54.720 struck a nerve lit far underneath Google as well, because 0:09:54.920 --> 0:09:58.280 it's talking up it's barred at the moment. Just discuss 0:09:58.480 --> 0:10:01.120 why there seems to be the sudden flurry of announcements 0:10:01.200 --> 0:10:06.079 this race upon us for this generative AI within search. Well, 0:10:06.240 --> 0:10:07.959 we've been working at it for a little while and 0:10:08.920 --> 0:10:11.080 and we've been excited about. The thing that has motivated 0:10:11.160 --> 0:10:13.520 us is today there's like ten billion queries that happened 0:10:13.520 --> 0:10:16.760 on any given day, and by our estimation, roughly half 0:10:16.800 --> 0:10:19.839 go unanswered, and that to us is a huge opportunity 0:10:20.240 --> 0:10:23.120 to sort of reinvent search. The other big dynamic is 0:10:23.160 --> 0:10:25.440 that AI in the last really in the last number 0:10:25.440 --> 0:10:28.520 of months, has seen an inflection. Both the technical capability 0:10:28.520 --> 0:10:30.959 has gotten so much better, but the user experienced this 0:10:31.120 --> 0:10:34.040 idea of being able to chat. The combination of those 0:10:34.080 --> 0:10:36.040 two things has really come together to make for a 0:10:36.080 --> 0:10:40.240 big opportunity use of good off need to you busy days. 0:10:40.320 --> 0:10:43.959 Caroline said, My question is why now you know? How 0:10:44.120 --> 0:10:48.360 ready is it? How convinced are you that being with 0:10:48.520 --> 0:10:53.800 AI is ready? I thought the timing was was interesting. Yeah, 0:10:54.040 --> 0:10:55.800 as I mentioned, we've been working at for a while, 0:10:55.920 --> 0:10:58.199 we've been at it for for many months. We do 0:10:58.360 --> 0:11:00.400 feel like we're ready to go to the limit preview 0:11:00.440 --> 0:11:02.400 and we're happy to have shipped in that state. And 0:11:02.520 --> 0:11:04.679 the reason for that is that in the evolution of 0:11:04.720 --> 0:11:06.640 the technology, there's only so much you can do in 0:11:06.679 --> 0:11:08.960 the lab, and then eventually you get to a place 0:11:09.000 --> 0:11:11.440 where you need to get that you know and user feedback. 0:11:11.520 --> 0:11:13.120 You need to have that to come and improve the product. 0:11:13.520 --> 0:11:16.360 We feel confident today that we've got a we've got 0:11:16.400 --> 0:11:19.480 a wow idea in terms of how chat and search 0:11:19.679 --> 0:11:22.160 and the brows are all come together and uh, and 0:11:22.240 --> 0:11:24.400 we've put in all of the good work to make 0:11:24.440 --> 0:11:26.840 sure it is a stable system. And so we're looking 0:11:26.880 --> 0:11:30.320 forward now at getting feedback and then improving. You se 0:11:30.400 --> 0:11:34.040 if open ai has a closed profit model, it's been 0:11:34.160 --> 0:11:37.959 licensing access to chat, GPT and other tools to developers. 0:11:38.480 --> 0:11:42.240 Is there any element of exclusivity in this arrangement with 0:11:42.440 --> 0:11:45.719 open ai that gives you an advantage over others in 0:11:45.880 --> 0:11:51.480 utilizing the underlying technology, either for search or other applications. Um, 0:11:51.920 --> 0:11:54.360 the open could work with money companies. The opportunity we 0:11:54.480 --> 0:11:57.240 have is that we've worked with them together so so closely. 0:11:57.640 --> 0:12:00.880 So this latest ai model on any the covers, which 0:12:00.920 --> 0:12:02.840 we announced today as a brand new one, this one 0:12:02.960 --> 0:12:05.920 is much more powerful than chat, GPT and it's tuned 0:12:06.000 --> 0:12:08.480 for search. We've worked together to make that happen. That's 0:12:08.480 --> 0:12:11.559 pretty unique. Certainly, other companies can work with the technology, 0:12:11.640 --> 0:12:14.400 but I think we have a great collaboration there and 0:12:14.840 --> 0:12:17.800 we're making that across because we that cloud of Azure 0:12:18.120 --> 0:12:19.959 powers the back in. We've worked with them on the 0:12:20.000 --> 0:12:22.800 AI supercomputer UH and we work with them on the 0:12:22.840 --> 0:12:26.040 modernization model as well. So across the board we have 0:12:26.080 --> 0:12:30.280 a very deep partnership. Talk to us about monetization such 0:12:30.320 --> 0:12:32.400 in a data you're CEO saying the technology is going 0:12:32.440 --> 0:12:35.840 to recipe basically pretty much every software category. What does 0:12:35.880 --> 0:12:37.920 that mean in terms of revenues, particularly when it comes 0:12:37.960 --> 0:12:41.400 to boosting search for example. Well, the way to think 0:12:41.400 --> 0:12:46.560 about this is um search is the largest software category 0:12:46.600 --> 0:12:50.040 and software that's out there. Advertising as a whole as 0:12:50.040 --> 0:12:53.600 a six D billion dollar business, and searches the predominant 0:12:53.640 --> 0:12:56.280 part of that. We have an opportunity to reshape that, 0:12:56.679 --> 0:12:59.160 to to bring new value to people, as we talked 0:12:59.160 --> 0:13:01.760 about in terms of being able to answer questions, but 0:13:01.840 --> 0:13:04.800 also new value to advertisers who within that experience that 0:13:04.920 --> 0:13:07.880 can bring more targeted advertising and get better R o I. 0:13:08.280 --> 0:13:10.800 So the opportunity to improve that is is something that 0:13:10.880 --> 0:13:13.959 we think is going to benefit everybody. It's interesting we 0:13:14.040 --> 0:13:17.000 went to our own audience via Twitter to ask them 0:13:17.720 --> 0:13:20.640 where they feel the winnings will be made now, not 0:13:20.800 --> 0:13:24.840 just talking about Google versus by do versus yourself at 0:13:24.880 --> 0:13:29.559 the moment, but China versus the US, and notably interesting me, 0:13:29.640 --> 0:13:33.280 they didn't think well thought that US technology companies are 0:13:33.280 --> 0:13:36.360 going to win the AI race less likely China, but 0:13:36.440 --> 0:13:39.120 the robots win is actually where they came out with you. 0:13:39.240 --> 0:13:42.280 So that speaks to a point of the power of 0:13:42.440 --> 0:13:46.800 artificial intelligence and at that point, to recorrect itself, to 0:13:46.960 --> 0:13:49.480 improve upon itself. And to that end, I asked you 0:13:49.559 --> 0:13:52.600 about the concerns, the safety, the issues, the biases. How 0:13:52.679 --> 0:13:54.640 do you ensure that we're at the right place there 0:13:55.080 --> 0:13:58.880 to unleash this. Yeah, that's a great question, Caroline, that's 0:13:58.920 --> 0:14:02.040 top of mind for us. We um We have focused 0:14:02.120 --> 0:14:05.320 now for many years on responsible AI. We've put forth 0:14:05.720 --> 0:14:08.599 principles and a framework, and we've done a lot of 0:14:08.679 --> 0:14:11.800 engineering in that regard. We've learned a lot from our 0:14:11.880 --> 0:14:15.480 past releases. So what we released today has a bunch 0:14:15.520 --> 0:14:17.880 of guard rails and safety in there for things like 0:14:18.000 --> 0:14:21.440 hate speech and violence and self harm. We you know, 0:14:21.520 --> 0:14:23.480 we catch the quarries when people type them in, and 0:14:23.560 --> 0:14:26.240 we can determine before it gets to the model, before 0:14:26.240 --> 0:14:29.360 it generates any content. We've trained the model specifically to 0:14:29.520 --> 0:14:32.080 catch these things and then again before answers come out. 0:14:32.400 --> 0:14:34.640 So we've done a lot of work that said. You know, 0:14:34.680 --> 0:14:36.920 it's been clear there's definitely bad actors out there that 0:14:37.040 --> 0:14:38.960 like to hack the system, and we're gonna have to 0:14:39.000 --> 0:14:41.520 stay vigilant and on top of it. Um. We feel 0:14:41.560 --> 0:14:43.360 that today is an important part because part of how 0:14:43.400 --> 0:14:45.280 you get better and better is you have to go 0:14:45.360 --> 0:14:47.440 to market. You actually have to ship. You can't just 0:14:47.520 --> 0:14:49.760 solve these problems in the lab, and today is an 0:14:49.800 --> 0:14:52.560 important step to continue to improve on that for a 0:14:52.760 --> 0:14:55.400 I being something that can work for everybody. Yes, if 0:14:55.600 --> 0:14:58.360 we talk about Generative AI day in day out in 0:14:58.440 --> 0:15:00.960 the show, it's great to have you thank you yourself 0:15:01.040 --> 0:15:04.200 many of microslot and and you didn't talk about it 0:15:04.280 --> 0:15:06.440 day in day out, not just from Microsoft's perspective, but 0:15:06.520 --> 0:15:09.280 some of the other competitors, right. Yeah, So by do 0:15:09.560 --> 0:15:12.760 the big name coming out overnight out of China confirming 0:15:12.800 --> 0:15:15.400 a Bloomberg scoop that as soon as March it will 0:15:15.560 --> 0:15:20.760 roll out in English. Ernie it's chat GPT competitor in 0:15:20.840 --> 0:15:24.440 the former Generative AI, a chat bot. And it's interesting 0:15:24.520 --> 0:15:27.160 because they didn't do a big onstage splash with the 0:15:27.440 --> 0:15:30.560 press and with analysts gathered, they just made a statement 0:15:30.600 --> 0:15:33.040 and we're out on Twitter kind of flexing a little 0:15:33.080 --> 0:15:36.400 bit about the roadmap for Ernie. We've been reporting around 0:15:36.400 --> 0:15:38.760 the work they've done around this, Carol. But you know, 0:15:38.920 --> 0:15:41.600 by Do is the Google of China right dominates the 0:15:41.680 --> 0:15:44.760 search market there, and they plan to integrate that tool 0:15:44.800 --> 0:15:47.600 into their own search capabilities. And as we've discussed, the 0:15:47.680 --> 0:15:50.680 shares absolutely surging both in Hong Kong and in the 0:15:50.840 --> 0:15:54.960 US in response. Yeah, and and just the element here 0:15:55.000 --> 0:15:58.800 that we've talked time and time again about US versus China, 0:15:58.920 --> 0:16:01.280 and just at one point, you think of the books 0:16:01.440 --> 0:16:04.080 have been written, the focus from Kaifu Lee and many 0:16:04.160 --> 0:16:07.000 others that China really managed to get into the home 0:16:07.160 --> 0:16:09.880 so much faster, the use of you know, the basic 0:16:10.000 --> 0:16:12.520 form of generative language AI that we're all used to have, 0:16:12.600 --> 0:16:14.960 basically asking alex or or some sort of piece of 0:16:15.000 --> 0:16:16.920 equipment in our home. China led the way in that. 0:16:17.080 --> 0:16:19.040 And I wonder how much further ahead by Do will 0:16:19.120 --> 0:16:21.320 end up becoming and how many checks and balances it 0:16:21.360 --> 0:16:24.440 will have itself. Right, And what's so interesting is Ernie 0:16:24.480 --> 0:16:27.920 is so similar to chat GBT gives a conversational style response. 0:16:28.240 --> 0:16:31.440 They're just handling it slightly differently. Sorry, well, of course, 0:16:31.480 --> 0:16:33.680 continues track. Now coming up, we're going to turn back 0:16:33.760 --> 0:16:35.920 to soft Bank and take a look at maybe a 0:16:36.080 --> 0:16:39.520 Vision Fund three plus a new fund from Goldman Sachs 0:16:39.600 --> 0:16:41.960 has its eyes set on more tech. We'll bring all 0:16:42.000 --> 0:16:59.800 of you that that next. This is Bloomberg time for 0:17:00.000 --> 0:17:03.880 talking tech. Soft Bank may consider launching a third Vision 0:17:03.960 --> 0:17:07.480 Fund after it exhausts its available capital, and the executive 0:17:07.520 --> 0:17:10.400 has told Bloomberg the Vision Fund too still has six 0:17:10.440 --> 0:17:14.320 point five billion dollars for fresh investments. But SoftBank's Marquee 0:17:14.359 --> 0:17:17.840 funds lost five billion dollars in value in the December quarter, 0:17:18.000 --> 0:17:21.639 dragged down by those slumping valuations across private startups. It 0:17:21.760 --> 0:17:25.600 was the segments fourth straight quarter of losses and more. 0:17:25.680 --> 0:17:27.680 Of course, in the world of AI, the Apple Dabby 0:17:27.760 --> 0:17:31.160 based AI company G forty two hiring dozens of people 0:17:31.240 --> 0:17:34.760 in Singapore, Jakarta, Shanghai, and Tel Aviv to scout for 0:17:34.840 --> 0:17:38.600 opportunities for a ten billion dollar tech fund. That's, according 0:17:38.680 --> 0:17:42.959 to sources, the Fungal target technology investments across those countries, 0:17:43.000 --> 0:17:46.000 as well as markets in Saudi Arabia and in Egypt. 0:17:52.760 --> 0:17:55.320 Welcome back to Bluemo Technology. M Carraine Hide in New York, 0:17:55.400 --> 0:17:58.600 and lawmakers are targeting TikTok during a markup of three 0:17:58.680 --> 0:18:01.840 bipartisan proposals. According to reporting from Bring the Government tech 0:18:01.920 --> 0:18:05.960 reporter Maria Curie, she enjoys us now from Capital Hill. Maria, 0:18:06.040 --> 0:18:08.480 the Senate Judiciary Committee is going to hold this hearing 0:18:08.560 --> 0:18:11.959 on protecting kids online next week. Sources tell us how 0:18:12.080 --> 0:18:14.399 much is this a long term goal for Biden. I 0:18:14.440 --> 0:18:17.760 think he's discussed this in speeches before relative to try 0:18:17.840 --> 0:18:22.560 and put pressure on Congress to do something about it. Sure, 0:18:22.720 --> 0:18:24.840 so this is definitely an issue that can be tackled 0:18:24.880 --> 0:18:28.680 from multiple angles, not just from Congress, but from relevant 0:18:28.720 --> 0:18:31.720 federal agencies like a Federal Trade Commission. UM. And so 0:18:32.040 --> 0:18:35.240 it certainly can be a long term goal on various fronts. 0:18:35.320 --> 0:18:38.359 But the Senate Judiciary Committee next week, we'll put a 0:18:38.440 --> 0:18:41.359 focus on it early on in the eighth Congress. The 0:18:41.440 --> 0:18:43.960 witnesses have yet to be determined, but we can expect 0:18:44.000 --> 0:18:47.560 some conversations. They're on key legislation that um did not 0:18:47.680 --> 0:18:50.160 make it across the finish lying in the last Congress, 0:18:50.240 --> 0:18:54.560 but did come close. UM. So, yeah, it was interesting 0:18:54.640 --> 0:18:59.600 when we've had guests on in particular well FCC commissioners, 0:18:59.640 --> 0:19:02.720 and then they've talked about perhaps that this should be driven, 0:19:02.760 --> 0:19:06.360 the TikTok focus should be coming from the administration rather 0:19:06.440 --> 0:19:10.280 than from Congress. When is there any update on Saphius 0:19:10.400 --> 0:19:13.399 or in general where the administration stands on TikTok and 0:19:13.440 --> 0:19:16.760 our access to it. Well, we heard recently that the 0:19:16.800 --> 0:19:19.480 President said he's not sure if TikTok should be banned 0:19:19.480 --> 0:19:23.760 in the country. But interestingly, Congress's approach would be giving 0:19:23.800 --> 0:19:27.120 the President more authority to limit TikTok, so it would 0:19:27.119 --> 0:19:31.480 still end up being UM an executive branch effort UM. Importantly, 0:19:31.680 --> 0:19:35.600 Senator Warner is working on a bill that UM would 0:19:35.680 --> 0:19:40.080 prevent giving other countries a platform for retaliating against US companies, 0:19:40.119 --> 0:19:42.920 So that's certainly a consideration moving forward as we see 0:19:43.000 --> 0:19:46.119 more and more bills crop up. Today's markup of the 0:19:46.240 --> 0:19:49.639 three UM TikTok bills were different in the sense that 0:19:49.680 --> 0:19:54.040 they would empower consumers to have more knowledge about their app. 0:19:54.520 --> 0:19:58.359 They would UM app distributors would be required to tell 0:19:58.880 --> 0:20:02.520 consumers that it is is UM owned by a company 0:20:02.600 --> 0:20:05.080 that is based in China, and that their data is 0:20:05.160 --> 0:20:07.520 being collected, and so this is taking on a different approach. 0:20:07.520 --> 0:20:09.359 Instead of banning or limiting the app, it would just 0:20:09.440 --> 0:20:13.880 be empowering consumers with more information. Career Curi of Bloomberg 0:20:13.920 --> 0:20:17.760 Government now staying in Washington to u S. Senators express 0:20:17.840 --> 0:20:21.560 their concern to Meta CEO Mark Zuckerberg over the risk 0:20:21.600 --> 0:20:25.040 of developers in China and Russia having access to use 0:20:25.119 --> 0:20:28.000 a data they say metas Facebook unit new in two 0:20:28.080 --> 0:20:31.520 thousand eighteen that quote, hundreds of thousands of developers in 0:20:31.640 --> 0:20:35.800 countries characterized as high risk had access to significant amounts 0:20:35.960 --> 0:20:39.200 of sensitive user data. The senators said their staff held 0:20:39.280 --> 0:20:42.359 meetings with company execs to determine who could get the 0:20:42.520 --> 0:20:45.760 data and what Facebook planned to do about it, particularly 0:20:46.119 --> 0:20:50.800 with regards to protecting users information. But stick with Meta, 0:20:50.880 --> 0:20:54.920 the company is asking many of its managers and directors 0:20:55.280 --> 0:21:00.320 to transition to individual contributor jobs or leave the penny 0:21:00.600 --> 0:21:03.600 as it tries to become more efficient. Joining us for 0:21:03.720 --> 0:21:08.439 more is Bloomberg Sarah Fryer who broke this story. I mean, Sarah, 0:21:08.880 --> 0:21:11.959 since we reported the kind of mass round of layoffs 0:21:11.960 --> 0:21:14.640 at Meta, I imagine there are a number of employees 0:21:14.680 --> 0:21:17.680 who have been waiting for the acts to drop. But 0:21:17.800 --> 0:21:21.920 in this case, it's very specific roles that Mark Zuckerberg 0:21:21.920 --> 0:21:24.400 and co. Appear to be going after. Right if you're 0:21:24.440 --> 0:21:27.879 a Meta employee, Ever since those cuts in November, this 0:21:28.080 --> 0:21:32.520 historic time for the company, You've seen a number of 0:21:32.560 --> 0:21:34.879 other rounds of layoffs at other companies and you're thinking, 0:21:35.720 --> 0:21:37.320 you know what's coming next? Are we going to have 0:21:37.400 --> 0:21:40.639 another round? Amazon had another round? And what it turns 0:21:40.680 --> 0:21:43.119 out from our sources is there is a thinning of 0:21:43.280 --> 0:21:46.720 the ranks happening at Meta as we speak, that managers 0:21:46.760 --> 0:21:51.119 are getting told by their supervisors, Um, you need to 0:21:51.920 --> 0:21:55.280 get to a point where you're doing individual contributor work, 0:21:55.359 --> 0:22:00.320 whether that's coding, research, design, um, whatever it is that 0:22:00.400 --> 0:22:03.359