WEBVTT - Cathie Wood's TSMC Sale, Social Media Content Moderation 0:00:02.480 --> 0:00:09.960 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.560 --> 0:00:12.200 From Mahart where Innovation of Money and Power Collie in 0:00:12.320 --> 0:00:13.840 Silicon Valley, NBN. 0:00:14.160 --> 0:00:18.200 This is Bloomberg Technology with Caroline Hyde and Ed Lovelove. 0:00:31.760 --> 0:00:34.400 I'm Caroline Hyde at Bloomberg's World headquarters in New York. 0:00:34.640 --> 0:00:37.960 And I'm Ed Lovelow in San Francisco. This is Bloomberg Technology. 0:00:38.040 --> 0:00:38.960 We're back and coming up. 0:00:39.000 --> 0:00:42.000 The full market coverage ahead is Kathy Wood Sells into 0:00:42.000 --> 0:00:46.640 the video Frenzy by coming Hunt, SMC, Steak, rewaiting or 0:00:46.640 --> 0:00:48.360 something more details to come. 0:00:49.120 --> 0:00:52.520 Plus, the Supreme Court will hear challenges today on two 0:00:52.600 --> 0:00:57.240 laws that aim to prevent social media platforms from censoring posts. 0:00:57.560 --> 0:00:58.760 We'll have the latest and. 0:00:58.760 --> 0:01:01.960 Jeff Bezos and video and join open Ai to back 0:01:02.000 --> 0:01:05.880 in company developing human like robots. We'll discuss that and 0:01:06.000 --> 0:01:08.920 so much more throughout the hour, but first checking on 0:01:08.959 --> 0:01:12.000 these markets. Little Croquie, as is my voice, We're currently 0:01:12.040 --> 0:01:14.319 up about a ten tove percent. Look, we're clawing into 0:01:14.360 --> 0:01:17.480 a big macro week. We really revert our attention to 0:01:17.560 --> 0:01:21.080 FED speak to economic perspective when we get their core 0:01:21.160 --> 0:01:22.280 PCE details. 0:01:22.480 --> 0:01:23.880 Really, how is inflation. 0:01:23.640 --> 0:01:25.440 Going at the moment? Yesterday all about in vinear and 0:01:25.440 --> 0:01:27.720 in earnings. This week it is all about, of course, 0:01:27.920 --> 0:01:30.760 the eyes on macro. We're looking at socks European six hundred, 0:01:30.800 --> 0:01:32.800 actually just down off of its record high, so a 0:01:32.800 --> 0:01:34.520 little bit of course is training in Europe as well. 0:01:34.560 --> 0:01:36.760 Tenure years up three basis points as we look for 0:01:36.800 --> 0:01:38.720 that inflationary reader. Let's look at what's happening in the 0:01:38.720 --> 0:01:41.680 world at crypto though, because bitcoin as dollar basically flat 0:01:41.760 --> 0:01:44.280 on the day, Crypto is spiking up about two percentage points. 0:01:44.440 --> 0:01:47.080 Hopefull you got on the micro I'm signing the week 0:01:47.120 --> 0:01:49.840 with some m and a Monday. KKR is buying a 0:01:49.840 --> 0:01:53.880 software unit from broad Con for about four billion US dollars. 0:01:54.160 --> 0:01:57.880 This is a unit that basically provides the software for 0:01:58.000 --> 0:02:01.680 remote desktop connection. It's something that Broadcom got out of 0:02:01.720 --> 0:02:05.800 the VMware deal last year. You can see avgo the 0:02:05.840 --> 0:02:08.960 tick of Broadcom. It shares up almost a percentage point. 0:02:08.960 --> 0:02:11.040 Now kk are not doing much but an interesting way 0:02:11.040 --> 0:02:14.200 of starting the week. It's something that Bloomberg had previously reported. 0:02:14.400 --> 0:02:16.480 The other kind of mover story that we're looking at, 0:02:16.520 --> 0:02:18.840 as we always are at the moment, is in Vidia, 0:02:18.880 --> 0:02:21.600 but also the US ad rs or US listed shares 0:02:21.840 --> 0:02:24.520 of TSMC, both moving to the upside in video up 0:02:24.560 --> 0:02:28.760 one point two percent, TSMC hiring US trading four tenths percent. 0:02:29.080 --> 0:02:33.200 As you said, what we saw is our the innovational 0:02:33.240 --> 0:02:36.800 politics is have sell down its physician about nine thousand 0:02:36.800 --> 0:02:40.640 ADRs on TSMC. Now, you can kind of look at 0:02:40.639 --> 0:02:42.520 it as a rewaiting, but the main point is it's 0:02:42.560 --> 0:02:46.160 the first time they've offloaded TSMC shares since twenty twenty one. 0:02:46.560 --> 0:02:50.120 The story seems to be reduce exposure also to Nvidia 0:02:50.200 --> 0:02:55.440 because TSMC the lead contract manufacturer semeis globally, so much 0:02:55.480 --> 0:02:57.520 of the run up in the space has basically been 0:02:57.520 --> 0:02:59.960 the carry through from the AI hyper around in v 0:03:00.080 --> 0:03:01.919 year in the age one hundred. We can get deeper 0:03:01.960 --> 0:03:04.959 into that. It's something that I'm sure many money managers 0:03:05.240 --> 0:03:07.160 around the world care are having to deal with right 0:03:07.160 --> 0:03:08.600 now given the recent performance. 0:03:08.760 --> 0:03:10.480 Let's talk to one of them. So it does money 0:03:10.560 --> 0:03:13.040 with us head of longtime un Constrained Strategies at Martin 0:03:13.160 --> 0:03:17.200 Curry and Vidia largest holding among so is global long 0:03:17.280 --> 0:03:20.560 term unconstrained portfolios. So it is so good to have 0:03:20.960 --> 0:03:23.360 a focus like yours. After the week we've just had 0:03:23.919 --> 0:03:26.200 are you still committed to a name like in video 0:03:26.240 --> 0:03:29.200 when I know you talk about valuation discipline, What does 0:03:29.200 --> 0:03:32.079 one look at an evaluation perspective the forward pes or 0:03:32.080 --> 0:03:34.120 actually just the sheer scale of a two trillion number. 0:03:34.600 --> 0:03:36.680 Yeah, it's a good question, Caroline, Thank you very much 0:03:36.720 --> 0:03:39.600 for having me on your program. For us, it's still 0:03:40.000 --> 0:03:44.440 a case of looking at how the gross opportunity translates 0:03:44.880 --> 0:03:47.920 and how the gross profile for Nvidia comes through. So 0:03:48.160 --> 0:03:50.320 when you look at the AI basket that we follow 0:03:50.320 --> 0:03:54.840 over fifty stocks, there's been a rapid appreciation. So we've 0:03:54.880 --> 0:03:58.800 got over the last twelve months, sixty percent moving share 0:03:58.840 --> 0:04:02.600 prices on average for earnings that have only moved by 0:04:02.640 --> 0:04:06.120 seven percent. And you compare that to Nvidia over the 0:04:06.200 --> 0:04:08.840 last twelve months is up almost two hundred and eighty percent, 0:04:09.240 --> 0:04:12.240 but its earnings have been upgraded by three hundred and 0:04:12.280 --> 0:04:16.200 eighty percent plus, so you've had multiple contraction. So that's 0:04:16.240 --> 0:04:19.600 one aspect to highlight. We want to focus on companies 0:04:19.600 --> 0:04:23.240 that can monetize from AI and where there's more likely 0:04:23.320 --> 0:04:26.080 to be earnings momentum that really follows through. 0:04:26.680 --> 0:04:29.000 So as you've been reporting with the likes of a 0:04:29.080 --> 0:04:33.200 kathe word and a managed gtfare. Do you rewait on 0:04:33.240 --> 0:04:36.520 a more regular basis, Do you have to think about 0:04:36.600 --> 0:04:40.520 broadening your perspective away from an video at SMC to 0:04:40.560 --> 0:04:43.400 some of the other names that perhaps haven't been run 0:04:43.480 --> 0:04:45.040 up as quite so far so fast. 0:04:45.240 --> 0:04:48.320 Yeah, we still focused on companies that can monetize, which 0:04:48.360 --> 0:04:50.520 for us are the companies that provides a pix and 0:04:50.520 --> 0:04:54.359 shovels to the AI opportunity, So the enablers of AI 0:04:54.760 --> 0:04:56.719 or in other words, companies that will benefit from the 0:04:56.839 --> 0:04:59.800 significant investment spend that is going on both by the 0:05:00.080 --> 0:05:03.440 hyperscalers but also corporates will be spending more on AI, 0:05:03.760 --> 0:05:06.279 and so which are the companies that can monetize from that? 0:05:06.560 --> 0:05:09.920 And for us, it's companies like Nvidia that's really well positioned, 0:05:10.000 --> 0:05:12.240 and we believe in Vidia is probably in the same 0:05:12.240 --> 0:05:15.520 position as ASML was ten fifteen years ago as a 0:05:15.640 --> 0:05:20.600 quasi monopoly and enabler of the AI opportunity. And then 0:05:20.640 --> 0:05:23.400 you have companies like Microsoft, which is really positioned across 0:05:23.480 --> 0:05:27.680 three fronts. Firstly their stake in open Ai, secondly their 0:05:27.680 --> 0:05:31.520 cloud provision, and thirdly the fact that they have a 0:05:31.680 --> 0:05:35.080 connection with enterprises. And we believe corporates are the most 0:05:35.200 --> 0:05:39.000 likely entities in the economy that will need to harness 0:05:39.000 --> 0:05:44.320 AI to ensure that they stay productive competitive, because ultimately, 0:05:44.320 --> 0:05:46.719 you don't get competed away by AI when you're a corporate, 0:05:46.760 --> 0:05:50.400 you get competed away by another corporate using AI better 0:05:50.560 --> 0:05:51.479 and faster than you do. 0:05:52.640 --> 0:05:55.520 ZERI. This is what Kathy would had to say on 0:05:55.800 --> 0:05:58.120 X the social media platform. You know, she's been in 0:05:58.160 --> 0:06:01.000 the name long time. She feels that she was early 0:06:01.120 --> 0:06:04.240 to the kind of ball fesis around AI. But our 0:06:04.279 --> 0:06:08.400 own Eric Bautunis, he's our Bloomberry intelligence specialists on ETF. 0:06:08.480 --> 0:06:10.960 She kind of makes the point that don't get bogged 0:06:10.960 --> 0:06:14.080 down and the selling on any given position, think about 0:06:14.080 --> 0:06:16.520 it from a waiting perspective, which Caroline mentioned. So this 0:06:16.560 --> 0:06:19.400 is the table right, and if you look at the 0:06:19.440 --> 0:06:24.040 waiting of TSMC, the ADRs at least and also in 0:06:24.200 --> 0:06:31.640 video within ARKQ, it's remained relatively constant. What you seem 0:06:31.680 --> 0:06:35.400 to have in common with her is that the ball 0:06:35.480 --> 0:06:37.800 thesis is intact, that there is going to be a 0:06:37.800 --> 0:06:40.040 big infrastructure build out. And this is something and I've 0:06:40.040 --> 0:06:42.680 been talking about for quite a long time now, where 0:06:42.720 --> 0:06:46.640 do you look for that infrastructure benefit? If you're an investor, Yeah, 0:06:46.839 --> 0:06:47.479 and that's right. 0:06:48.040 --> 0:06:51.200 I think we were here in September last year and 0:06:51.279 --> 0:06:54.960 at the time we discussed the Nvidia valuation and we 0:06:55.040 --> 0:06:56.760 felt that there was still a lot of support and 0:06:56.880 --> 0:06:59.760 since and the stock is up i think over eighty percent, 0:07:00.240 --> 0:07:01.799 so it's had a very strong run. 0:07:02.080 --> 0:07:02.440 For us. 0:07:02.480 --> 0:07:06.360 It's still about focusing on those companies as I mentioned, 0:07:06.360 --> 0:07:10.760 that can monetize, and NVDA is really well positioned for that. 0:07:11.440 --> 0:07:14.000 The debate will be what is a runway of growth 0:07:14.200 --> 0:07:16.560 and for us over the last twelve months, we've really 0:07:16.600 --> 0:07:18.560 just seen the tip of the iceberg in terms of 0:07:18.960 --> 0:07:22.120 spend being channeled in AI. If you look at some 0:07:22.240 --> 0:07:26.960 of the big tech companies, there's plans to increase capex 0:07:27.040 --> 0:07:30.040 visue by twenty two percent to about one hundred and 0:07:30.120 --> 0:07:32.800 eighty billion dollars when you add up the various big 0:07:32.800 --> 0:07:34.080 tech companies that we follow. 0:07:35.280 --> 0:07:39.680 Sarah, you mentioned Microsoft, You mentioned being able to monetize. 0:07:39.920 --> 0:07:44.560 Do you have the same attitude towards Google or Alphabet 0:07:44.640 --> 0:07:45.520 the parent of Google. 0:07:47.480 --> 0:07:51.200 We're actually one of the investors that is very underweight 0:07:51.240 --> 0:07:54.640 the Magnificence seven in terms of names. So of the seven, 0:07:54.720 --> 0:07:57.720 we only hold two companies in our global strategies, and 0:07:57.760 --> 0:08:01.600 these are Nvidia and Microsoft. So we do that through 0:08:01.600 --> 0:08:06.040 a fundamental assessment, which for US is an assessment of growth, returns, 0:08:06.080 --> 0:08:09.080 profile and valuation as well as taking into a kound 0:08:09.080 --> 0:08:10.520 of various fundamental risks. 0:08:10.280 --> 0:08:10.840 That we assess. 0:08:11.160 --> 0:08:14.040 You have such a global perspective, which we love, and 0:08:14.080 --> 0:08:16.560 in your notes you really talk about some of the risks, 0:08:16.560 --> 0:08:19.240 and one of those is geopolitical. How are you factoring, 0:08:19.320 --> 0:08:21.920 for example, a commitment coming from in video and Jason 0:08:22.160 --> 0:08:25.000 Jensen saying I will remain in China and want to 0:08:25.040 --> 0:08:28.480 still be owning that market when geopolitics or as they are. 0:08:28.680 --> 0:08:29.640 It's a really good question. 0:08:29.680 --> 0:08:32.680 The geopolitics is probably the most important risk that investors 0:08:32.679 --> 0:08:36.679 should focus on. Unfortunately, it's also the most difficult to quantify. 0:08:37.080 --> 0:08:40.040 So for us, as you and I discussed Caroline, we 0:08:40.520 --> 0:08:43.920 took the view that we wanted to reduce the geopolitical 0:08:44.040 --> 0:08:48.400 risk and move to the beneficiaries of technological and geopolitical fragmentation, 0:08:48.520 --> 0:08:51.360 which is when we switched out of TSMC into a SML. 0:08:51.640 --> 0:08:54.959 We believe SML will be a beneficiary of the fragmentation 0:08:55.080 --> 0:08:58.480 in production sites that's currently going on, with plans being 0:08:58.520 --> 0:09:01.880 built in the US, in Japan, and in Europe. So 0:09:02.080 --> 0:09:04.199 for US, when we then look at Nvidia, we believe 0:09:04.240 --> 0:09:07.959 that indeed it will have some challenges in operating in China, 0:09:08.000 --> 0:09:10.320 but it will be adapting its products to make sure 0:09:10.400 --> 0:09:11.920 to be on the right side of the regulation. 0:09:13.480 --> 0:09:16.880 Ziri. About ten days before in Video reported earnings, I 0:09:16.920 --> 0:09:20.040 spoke with Jensen Hwang about the idea of sovereign AI 0:09:21.080 --> 0:09:24.640 and he sees a world in which in Video starts 0:09:24.679 --> 0:09:29.079 doing more business directly with nation states, right countries. It's 0:09:29.120 --> 0:09:31.840 one of your top holdings, and I wondered if the 0:09:31.840 --> 0:09:35.559 analysts on your desk a sign in their models any 0:09:35.640 --> 0:09:39.440 future growth that comes from a purely government contract for 0:09:39.640 --> 0:09:41.959 h one hundreds away from the private sector. 0:09:42.679 --> 0:09:45.840 We believe there's upsite to our forecast from that angle, 0:09:46.200 --> 0:09:48.640 but we certainly agree with Jensen that there will be 0:09:48.840 --> 0:09:52.480 a growing demand coming from sovereign AI as well. There 0:09:52.520 --> 0:09:55.000 is an element of duo political angle to it, and 0:09:55.320 --> 0:09:57.959 Jensen has explained that very well on his earning school 0:09:58.400 --> 0:10:01.040 and we believe that that again create some element of 0:10:01.440 --> 0:10:05.400 tailwind to the earnings momentum, but also it highlights importance 0:10:05.480 --> 0:10:10.360 of making sure that when we forecast companies. We always 0:10:11.040 --> 0:10:13.400 use different type of scenarios and that those scenarios to 0:10:13.520 --> 0:10:14.959 capture some of those eventuality. 0:10:15.640 --> 0:10:15.959 S ried. 0:10:16.120 --> 0:10:17.960 It's always great to have you here. Thank you for 0:10:17.960 --> 0:10:21.280 popping in with us. Usmani of Martin Curry and. 0:10:21.320 --> 0:10:24.520 Some more news. Yeah, another story in the AI space. 0:10:24.600 --> 0:10:29.760 French AI company Mistrau announced a strategic partnership with Microsoft 0:10:29.760 --> 0:10:33.760 today that includes making the startups latest artificial intelligence models 0:10:33.960 --> 0:10:37.480 available to customers of Microsoft's Azure cloud. The move comes 0:10:37.640 --> 0:10:42.439 as Microsoft faces mounting political scrutiny globally for its deep 0:10:42.520 --> 0:10:55.440 ties to Open Ai, which competes with miestrob. Today, the 0:10:55.440 --> 0:10:58.960 Supreme Court is hearing arguments over whether to state laws 0:10:59.280 --> 0:11:03.800 preventing so social media companies from moderating content violate the 0:11:03.840 --> 0:11:07.000 First Amendment. Here for more is Bloomberg's Emily Burnbam, You've 0:11:07.000 --> 0:11:10.880 got a fantastic quick take explaining what is a complicated 0:11:10.960 --> 0:11:14.480 legal situation. Let's start with the basics. What is this 0:11:14.640 --> 0:11:15.280 case about. 0:11:17.040 --> 0:11:20.640 So this case is a challenge from two of the 0:11:20.679 --> 0:11:24.560 tech industry's biggest lobbies. So that's net Choice in CCIA. 0:11:25.240 --> 0:11:29.160 They are challenging laws in Florida and Texas that are 0:11:29.240 --> 0:11:33.600 aimed at preventing social media companies from taking down certain 0:11:33.720 --> 0:11:37.040 kinds of political speech. So the question in the case 0:11:37.240 --> 0:11:42.240 is are the social media companies protected by the First Amendment? 0:11:42.320 --> 0:11:44.280 And the arguments are going on right now. 0:11:45.679 --> 0:11:47.800 When I'm reading your quick take, I'm reminded of what 0:11:47.960 --> 0:11:51.400 happened in twenty twenty the last election cycle when I 0:11:51.440 --> 0:11:54.760 was on the road. The content moderation or the policy 0:11:54.800 --> 0:11:57.760 from the tech companies kind of came as a reaction 0:11:57.840 --> 0:12:01.920 to what happened in that election cycle and the political story. 0:12:02.080 --> 0:12:06.160 To me, it seems like in certain sections of DC 0:12:06.960 --> 0:12:11.199 that they overdid it. That there's a feeling that conservative 0:12:11.280 --> 0:12:15.040 voices in particular were over censored. That is that the 0:12:15.080 --> 0:12:16.280 political story. Emily. 0:12:17.800 --> 0:12:22.160 Definitely, both the Florida and Texas laws were written and 0:12:22.200 --> 0:12:26.440 then ultimately passed in the wake of the biggest social 0:12:26.480 --> 0:12:30.840 media companies booting or suspending Trump from their services. So 0:12:31.040 --> 0:12:33.760 a lot of what we're seeing now is fallout from that. 0:12:34.080 --> 0:12:36.840 You know, should the social media companies be allowed to 0:12:36.920 --> 0:12:40.600 take such a prominent politician off their platform? Can you 0:12:40.640 --> 0:12:43.000 write a law that prevents them from doing it again, 0:12:43.520 --> 0:12:46.280 or do you ultimately sweep in all kinds of speech? 0:12:46.360 --> 0:12:50.480 That is you know, perfectly reasonable for them to have 0:12:50.559 --> 0:12:52.360 some editorial control over. 0:12:53.760 --> 0:12:57.760 It's hard on your beat, but I'll ask you anyway, 0:12:57.800 --> 0:13:00.680 what do you think the Supreme Court is likely to 0:13:00.720 --> 0:13:01.880 do with your crystal ball? 0:13:03.440 --> 0:13:05.839 Well, I've been listening to the arguments for the past hour, 0:13:06.000 --> 0:13:08.679 and there's so much skepticism already of. 0:13:08.640 --> 0:13:09.480 The Florida law. 0:13:09.760 --> 0:13:12.240 There are distinctions between the Florida and Texas laws, but 0:13:12.960 --> 0:13:16.480 basically the questions at the center of them are the same. 0:13:17.280 --> 0:13:20.840 We're hearing skepticism from the liberals and the conservatives, including 0:13:20.880 --> 0:13:24.480 some of those swing justices like Kavanaugh. 0:13:25.120 --> 0:13:27.720 They all are kind of confused about the law. 0:13:27.760 --> 0:13:31.320 They say, this is so broad sweeping, How does this 0:13:31.400 --> 0:13:34.839 even get implemented? Why are we even talking about this? 0:13:35.040 --> 0:13:37.079 So it's not looking very good for the States. 0:13:38.120 --> 0:13:39.720 It's just really great to have you on the show, Emily, 0:13:39.720 --> 0:13:41.280 But I do urge the audience go and check out 0:13:41.320 --> 0:13:44.160 Emily's quick take on the Bloomberg terminal Bloomberg dot com 0:13:44.160 --> 0:13:46.680 because you get a clear understanding of what is a 0:13:46.679 --> 0:13:49.480 complicated story. Thank you. Now, sticking with DC, we're actually 0:13:49.520 --> 0:13:52.000 waiting on some news from the Commerce Department. It could 0:13:52.040 --> 0:13:56.640 come at any time, potentially regarding grants from the Chips Act. 0:13:56.640 --> 0:13:59.840 Gina Romondo due to speak momentarily. Guess who's with us 0:14:00.040 --> 0:14:03.880 Bloombers Kaylee lines, we always have our eye on the 0:14:03.920 --> 0:14:07.840 flow of capital out of this key piece of law making. 0:14:08.160 --> 0:14:11.360 What do you think is going on? Well, we've already 0:14:11.360 --> 0:14:11.840 heard from. 0:14:11.800 --> 0:14:14.040 The Commerce Secretary, not today, but last week when she 0:14:14.160 --> 0:14:17.080 hinted there should be a drumbeat of bigger announcements related 0:14:17.080 --> 0:14:19.960 to allocating funds and loans from the Chips Act in 0:14:20.000 --> 0:14:22.520 the next six to twelve weeks. And Bloomberg's own reporting 0:14:22.520 --> 0:14:24.600 indicates they want to have many of these grants announced 0:14:24.680 --> 0:14:26.640 by the end of March. So the question is, could 0:14:26.680 --> 0:14:28.600 we get more hints from the Commerce Secretary when she 0:14:28.640 --> 0:14:31.480 speaks expected in just moments to give an update on 0:14:31.600 --> 0:14:34.360 Chips Act implementation. As you well know ed ed, we're 0:14:34.400 --> 0:14:37.160 talking thirty nine billion dollars in direct grants here another 0:14:37.200 --> 0:14:40.240 seventy five billion dollars in loan and loan guarantees. And 0:14:40.280 --> 0:14:43.920 among the companies that could perhaps getting access to these 0:14:43.920 --> 0:14:47.800 incentives next could be according to Bloomberg's reporting, Intel, TSMC, 0:14:47.880 --> 0:14:50.720 and Samsung, all of them are expected to be major recipients. 0:14:50.720 --> 0:14:53.280 Of course, the Intel CEO Pat Gelsinger last week said 0:14:53.280 --> 0:14:55.640 it could be coming soon, and Bloomberg has reported that 0:14:55.680 --> 0:14:58.760 Intel's incentive could be in the tune of ten billion dollars, 0:14:58.800 --> 0:15:02.080 which would be the largest any Chips Act funds granted 0:15:02.360 --> 0:15:04.400 so far as the Commerce Secretary is trying to do 0:15:04.440 --> 0:15:06.840 all these out and she's actually just beginning to speak 0:15:06.840 --> 0:15:09.600 now at the CSIS event, So of course we'll be 0:15:09.720 --> 0:15:11.840 watching for the headlines that she makes and bringing you 0:15:11.880 --> 0:15:13.520 off the latest on that news. 0:15:13.920 --> 0:15:16.000 Yeah, that Chips Act money is one of the key 0:15:16.080 --> 0:15:19.520 pillars of Pat Gelsinger in Intel's smart capital approach, particularly 0:15:19.560 --> 0:15:22.280 on the foundry business. Bloombergs key lines sticking across those 0:15:22.320 --> 0:15:24.360 headlines are coming up here on the program. Some of 0:15:24.360 --> 0:15:27.640 the biggest names in tech are investing in a business 0:15:27.680 --> 0:15:30.720 developing humanoid robots. It might not be the one that 0:15:30.760 --> 0:15:34.160 you think. More on that next. The news keeps coming 0:15:34.520 --> 0:15:37.360 at a DC we're looking at shares of discover and 0:15:37.400 --> 0:15:41.600 Capital one. A group of lawmakers led by a Senator 0:15:41.680 --> 0:15:47.080 Elizabeth Warren and also Representative Alexandria Ocasio Cortes are urging 0:15:47.120 --> 0:15:50.920 the FED the OCC to block this deal that broke 0:15:51.000 --> 0:15:53.480 last week. When I was on VACA a big one 0:15:54.120 --> 0:15:57.760 in the financial technology and consumer credit card space. The 0:15:57.760 --> 0:16:00.000 share is not really reacting to that kind of push 0:16:00.080 --> 0:16:02.640 back in DC both up a tenth of percent. This 0:16:02.680 --> 0:16:20.080 Bloomberg Technology. Okay, it's time for talking tech and first 0:16:20.120 --> 0:16:23.240 up in the news. Mark Zuckerberg will travel across Asia, 0:16:23.280 --> 0:16:26.880 with stops in Japan, South Korea, and India as the 0:16:26.920 --> 0:16:31.040 Meta CEO works on artificial intelligence services and forges ties 0:16:31.320 --> 0:16:35.240 with businesses and government leaders across Asia. In Seoul, Zuckerberg 0:16:35.280 --> 0:16:38.640 will meet with partners, and according to sources, he's tentatively 0:16:38.680 --> 0:16:42.120 scheduled to meet with South Korea's president. Local media also 0:16:42.160 --> 0:16:45.560 report that Zuckerberg will meet Samsung chairman Jy Lee to 0:16:45.640 --> 0:16:50.360 discuss cooperation in AI and LGCEO to talk about joint 0:16:50.360 --> 0:16:55.520 development of an extended reality headset. And A group outbid 0:16:55.600 --> 0:16:59.880 Citadel Securities for Credit Swee's investment bank venture in China. 0:17:00.120 --> 0:17:03.760 The surprise move there'll be subject to close regulatory scrutiny. 0:17:03.920 --> 0:17:06.680 The bid by the Jackmar backed fintech giant to build 0:17:06.720 --> 0:17:10.679 a securities business using Credit Swiss's operations will face a 0:17:10.800 --> 0:17:14.800 thorough review, as China favors of foreign buyer UBS group 0:17:14.800 --> 0:17:17.560 which now owns Credit Suisse, will have to choose between 0:17:17.600 --> 0:17:20.720 the higher local bid from ANT or the lower Citadel 0:17:20.800 --> 0:17:23.840 offer that's more likely to win government approval. All of 0:17:23.880 --> 0:17:27.160 that is according to Bloomberg sources. Plus, following an inquiry 0:17:27.200 --> 0:17:30.840 from the US SEC, Ali Barber disclosed a wider web 0:17:30.880 --> 0:17:35.320 of Chinese government states in its business units than previously known, 0:17:35.359 --> 0:17:38.639 with state ownership in more than twelve business units. In 0:17:38.680 --> 0:17:41.680 the notice, the company said the disclosures were made in 0:17:41.760 --> 0:17:45.080 response to certain comments from the staff of the SEC 0:17:45.280 --> 0:17:48.320 as an amendment to its earlier filing from July. The 0:17:48.320 --> 0:17:51.440 filings come as China's ruling Communist Party says it will 0:17:51.440 --> 0:17:55.359 play a bigger role in steering the country's technology and 0:17:55.440 --> 0:17:59.000 science development. Another big story Jeff Bezos and Nvidia and 0:17:59.040 --> 0:18:03.040 other big tech names investing in a business developing human 0:18:03.320 --> 0:18:08.119 like robots. The startup figure Ai, also backed by Open Ai, Microsoft, 0:18:08.160 --> 0:18:10.840 is raising about six hundred and seventy five million dollars 0:18:10.880 --> 0:18:14.800 in funding that carries a pre money valuation of about 0:18:14.840 --> 0:18:18.320 two billion dollars. That's all according to Bloomberg's sources, and 0:18:18.320 --> 0:18:21.800 that was reported by Bloomberg's Mark German, who joins US 0:18:21.840 --> 0:18:25.320 now humanoid robot. You think Tesla an optimist, but I've 0:18:25.320 --> 0:18:28.280 been digging in to this company. It's an interesting round. 0:18:28.280 --> 0:18:30.200 The numbers are big. What have you learned? 0:18:30.400 --> 0:18:33.840 Yeah, figure, this is an alternative to optimists. What Elon 0:18:33.960 --> 0:18:36.960 Mask is building. This company, like you said, is building 0:18:37.000 --> 0:18:40.240 humanoid robots. And the idea here is one to address 0:18:40.320 --> 0:18:43.439 labor shortages in the labor market at some point, but 0:18:43.640 --> 0:18:47.000 also to substitute for humans for more dangerous jobs, perhaps 0:18:47.040 --> 0:18:50.080 on production lines and such. And what we're told is 0:18:50.080 --> 0:18:52.359 that there could be an announcement this week for a 0:18:52.520 --> 0:18:56.640 slew of funding topping six hundred and seventy five million dollars, 0:18:56.680 --> 0:18:59.240 like you said, at that two billion or about two 0:18:59.320 --> 0:19:02.840 billion premium evaluation. And you have a lot of big 0:19:02.920 --> 0:19:06.159 names in one funding round, which is quite rare. You 0:19:06.200 --> 0:19:10.800 have Jeff Bezos's personal investment firm Explore. You have Intel 0:19:10.840 --> 0:19:14.040 coming in with a twenty five million dollar investment, in 0:19:14.160 --> 0:19:19.080 Nvidia coming in at a fifty million dollar investment, Amazon's VCRM, 0:19:19.359 --> 0:19:26.119 Samsung's VCRM, lg'svcr plus, Microsoft coming in with ninety five million, 0:19:26.320 --> 0:19:29.960 open Ai coming in at five million. So certainly you 0:19:30.040 --> 0:19:34.159 have the who's who they're of companies interested in artificial intelligence, 0:19:34.280 --> 0:19:37.720 robotics and these types of future technologies. So this is 0:19:37.760 --> 0:19:40.040 going to be quite interesting to see how it all develops. 0:19:40.240 --> 0:19:42.760 You know, the Nvidia piece is interesting. You know, they've 0:19:42.800 --> 0:19:45.760 invested all over the place privately, and as we learned 0:19:45.760 --> 0:19:49.639 in the thirteen FS, in some public companies as well. 0:19:49.840 --> 0:19:52.000 I think I'm right in saying at one point open 0:19:52.040 --> 0:19:57.000 Ai thought about just buying figure ai outright, What can 0:19:57.000 --> 0:19:59.399 you tell me about the company's progress? Do they have 0:19:59.520 --> 0:20:03.040 anything to show for their work in humanoid robotics so far? 0:20:04.280 --> 0:20:08.880 You know, before Sam Altman was ousted as CEO last year, 0:20:08.960 --> 0:20:13.040 there were some pretty deep negotiations regarding an acquisition a 0:20:13.080 --> 0:20:17.160 figure by open Ai. There were also more extensive conversations 0:20:17.160 --> 0:20:20.760 around bigger investments, and the open Ai investment ultimately came 0:20:20.800 --> 0:20:23.439 down to only five million dollars. And I say, only 0:20:24.000 --> 0:20:26.480 you compare to the fifty million from Nvidia, one hundred 0:20:26.520 --> 0:20:29.720 million from Bezos, you have one hundred million from a 0:20:29.800 --> 0:20:33.760 venture capital firm called Parkway. So certainly the open Ai 0:20:33.920 --> 0:20:36.480 deal sort of really fell apart amidst the whole Sam 0:20:36.480 --> 0:20:40.040 Altman situation last year in terms of the progress that 0:20:40.119 --> 0:20:42.840 figure has made. You know, they've published some videos and 0:20:42.880 --> 0:20:46.919 some specifications on their website. It's unclear who's further ahead, 0:20:46.960 --> 0:20:51.960 Figure or you know, Elon Musk's optimist, but clearly they're 0:20:52.040 --> 0:20:55.119 selling the goods to these investors and getting enough money 0:20:55.119 --> 0:20:57.640 from them. You can see the video they're playing. It's 0:20:57.720 --> 0:21:00.320 unclear if that's real or some sort of you know, 0:21:00.359 --> 0:21:04.440 AI created markup or you know, preview of what's to comet. 0:21:04.800 --> 0:21:08.080 Certainly it's going to be years or even a decade 0:21:08.080 --> 0:21:10.600 plus before what you've seen that video is a reality. 0:21:11.119 --> 0:21:13.840 But clearly these companies have enough money to put in 0:21:13.960 --> 0:21:16.919 you know what is what amounts to change under their couch, 0:21:17.600 --> 0:21:20.000 to play some bets here and there and hope that 0:21:20.080 --> 0:21:21.440 figure works out for them. 0:21:21.800 --> 0:21:24.560 Bloomberg'smark going, by the way, check out Mark's latest power 0:21:24.600 --> 0:21:28.080 on as well for a great photograph of you wearing 0:21:28.600 --> 0:21:31.560 the next generation of smart glasses, just putting it out there. 0:21:31.640 --> 0:21:42.280 Check it out. Okay, welcome back to Bloomberg Technology, Ed 0:21:42.359 --> 0:21:45.240 Ludlow here in San Francisco. It's Monday's go. It's a 0:21:45.400 --> 0:21:48.359 very business one. Let's start with some markets. This is 0:21:48.400 --> 0:21:51.960 more of like a PSA from last week. But Amazon 0:21:52.160 --> 0:21:56.439 has replaced Walgreen's Boot Alliance on the Dow Jones Industrial Average. 0:21:56.480 --> 0:21:59.199 Remember that's an index where waitings are done on a 0:21:59.240 --> 0:22:03.560 share price basis, not on a market capitalization basis. Something 0:22:03.560 --> 0:22:06.679 that was announced last week after Tuesday's market close, but 0:22:06.720 --> 0:22:09.320 I was on vacate I missed it. The point being 0:22:09.800 --> 0:22:12.200 it's effective as of Monday sessions. So if you look 0:22:12.200 --> 0:22:15.280 on your Bloomberg terminal, you'll see at Amazon flat, Walgreens 0:22:15.359 --> 0:22:19.040 Boots Alliance down two percent. What precipitated it was actually 0:22:19.040 --> 0:22:22.200 a three for one stock split, not by Walgreens but 0:22:22.240 --> 0:22:25.199 by Walmart, which had a reshuffle for the whole of 0:22:25.240 --> 0:22:28.080 that index. Another stock that we're watching closely to the 0:22:28.160 --> 0:22:31.800 downside is Alphabet, parent of Google. There has been so 0:22:31.920 --> 0:22:37.000