WEBVTT - SBF to Testify and Huawei Strikes Licensing Deal 0:00:16.440 --> 0:00:19.200 I'm Caroline High and every World tad quarters in New York, 0:00:19.600 --> 0:00:22.080 and I'm mad Ludlow in San Francisco. This is Bloomberg 0:00:22.079 --> 0:00:24.880 Technology coming up in the next hour. Sam mag mun 0:00:24.920 --> 0:00:27.960 Free says he's willing to testify before the U S. 0:00:28.000 --> 0:00:31.960 House Financial Services Committee about the collapse of his crypto empire. 0:00:32.360 --> 0:00:35.840 Will tell you what to expect from next week's hearing. Plus, 0:00:35.920 --> 0:00:39.760 Huawei strikes a deal to license tech to a handset rival, 0:00:39.840 --> 0:00:42.440 a bitter pill to swallow for the Chinese tech giant 0:00:42.479 --> 0:00:45.159 that's blocked from selling its tech in the US. We 0:00:45.240 --> 0:00:48.120 speak to two of their key executives, and we continue 0:00:48.159 --> 0:00:51.920 our coverage of China's risk to dropping its COVID zero stance, 0:00:51.960 --> 0:00:56.440 plus changes to Tessa Shanghai factory amid slowing consumer demand. 0:00:56.800 --> 0:01:00.040 We have you covered first, though foremost it is the 0:01:00.200 --> 0:01:02.560 markets day for us. Of course, we are once again 0:01:02.640 --> 0:01:05.240 seeing the wind taken out of the sales of equities. 0:01:05.440 --> 0:01:08.320 We're seeing down three quarters of a percent, so exhausting 0:01:08.400 --> 0:01:11.200 that this camera is getting all over excited by what's 0:01:11.200 --> 0:01:14.319 happening in these markets. Come closer, no back off. We're 0:01:14.360 --> 0:01:16.480 having a look at the nastack off by seven tenths percent. 0:01:16.520 --> 0:01:19.839 Look these basically, these benchmarks are off by at least 0:01:19.880 --> 0:01:22.200 three and a half four percent on the week overall ed, 0:01:22.200 --> 0:01:24.400 and this in large part is because we're worrying about 0:01:24.400 --> 0:01:27.039 where the Federal Reserve is going and concerned, for example, 0:01:27.080 --> 0:01:29.039 about how far they have to hike, when we're seeing 0:01:29.040 --> 0:01:32.959 a PPIP producer price index that shows that prices are 0:01:33.000 --> 0:01:36.640 just showing such resilience, inflation showing such resilience in the 0:01:36.680 --> 0:01:39.039 face of what have been rapid rate hikes by the Fed. 0:01:39.240 --> 0:01:42.119 Ten year yields have been climbing almost ten basis points. 0:01:42.240 --> 0:01:44.559 Let's have a look at what's happening overall in terms 0:01:44.560 --> 0:01:47.680 of our recession risks. As we are anticipating the warrior 0:01:47.680 --> 0:01:50.240 about a recession, we are seeing the entire market just 0:01:50.280 --> 0:01:51.920 getting nervous. If we can flip up the board, we 0:01:52.000 --> 0:01:54.640 really got this chart that has evidence of where we've 0:01:54.680 --> 0:01:58.360 been going in terms of the pickup now sixty chance. Basically, 0:01:58.400 --> 0:02:00.280 the market sees there will be in a recept so 0:02:00.320 --> 0:02:03.000 a contraction in this economy in the US come next year. 0:02:03.280 --> 0:02:05.800 And we've just got to keep talking about this contagion effect, 0:02:05.920 --> 0:02:09.040 keep talking about what happens next week, what clarity. We 0:02:09.080 --> 0:02:10.600 get it for any because we know that the former 0:02:10.639 --> 0:02:13.799 ft X CEO ed Sam bankmin Freed, says he is 0:02:13.840 --> 0:02:15.839 actually willing to testify. How did he tell us? Of course, 0:02:15.840 --> 0:02:17.640 he told us through Twitter. He announced it in a 0:02:17.720 --> 0:02:20.639 series of tweets, in fact, saying he will answer questions 0:02:20.680 --> 0:02:23.080 about the fall of his crypto empire from the U S. 0:02:23.080 --> 0:02:27.359 House Financial Service eximmity. Let's bring in Alison Verstraw from Washington, 0:02:27.440 --> 0:02:29.560 who has been all across this story, and of course 0:02:29.600 --> 0:02:31.919 so too has our own Shinali Bassett, who of course 0:02:31.919 --> 0:02:34.480 we'll be heading out to Washington and to that hearing 0:02:34.520 --> 0:02:37.520 next week. And Alison, just what did you make of 0:02:37.560 --> 0:02:40.160 the transparency we're getting them through the former Twitter. How 0:02:40.160 --> 0:02:43.360 are we seeing the actual senators trying to speak to 0:02:43.480 --> 0:02:47.320 Sam bankma Freed himself. You know, we're seeing everyone is 0:02:47.400 --> 0:02:50.960 using Twitter. We see Maxine Waters from the House Financial 0:02:51.000 --> 0:02:55.359 Services Committee is increasingly used that to put pressure on 0:02:55.560 --> 0:03:00.440 Sam to testify. We've also seen Senator to Me came 0:03:00.440 --> 0:03:03.200 out with his own tweet today that said, Sam, if 0:03:03.200 --> 0:03:04.880 you do show up at the House Committee is hearing, 0:03:04.919 --> 0:03:07.440 you better show up? But are hearing the next day? 0:03:07.560 --> 0:03:12.080 Uh so, you know everyone's using social media. It's kind 0:03:12.120 --> 0:03:14.639 of painful. I mean, I think was it Czi put 0:03:14.680 --> 0:03:17.040 invest himself is like because like, no, I can't watch movies. 0:03:17.080 --> 0:03:19.519 They're not exciting enough. I'm just addicted to crypto Twitter. 0:03:19.560 --> 0:03:22.040 And aren't we all in? Sali Bassaka is Mickey among them? 0:03:22.400 --> 0:03:24.840 Just talk to us about not only what you're going 0:03:24.880 --> 0:03:26.359 to be following through Twitter, but or you're gonna be 0:03:26.360 --> 0:03:28.560 following Shali on the ground because you're going to be there, 0:03:28.560 --> 0:03:31.000 you're going to be expecting testimony from who and all 0:03:31.000 --> 0:03:33.200 think the right kind of people to be giving testimony. Uh, 0:03:33.560 --> 0:03:35.320 that's an interesting question because there are a lot of 0:03:35.360 --> 0:03:37.240 academics that are being called upon the House and the 0:03:37.280 --> 0:03:40.200 Senate hearings. Remember there's only one set of small witnesses 0:03:40.240 --> 0:03:42.800 posted on the Senate Commody side. We don't have everything 0:03:42.840 --> 0:03:44.880 from the House itself at all yet. And remember Sam 0:03:45.360 --> 0:03:48.280 Freed said he's willing to testify. Will he show up 0:03:48.280 --> 0:03:51.200 and testify? There was no subpoena up to all this 0:03:51.280 --> 0:03:53.400 point as well, so a lot of questions about whether 0:03:53.400 --> 0:03:55.800 he will be there in person. Remember he does say 0:03:55.840 --> 0:03:58.040 that what he is trying to do is address not 0:03:58.160 --> 0:04:00.120 only f t X and the pathway to which term 0:04:00.200 --> 0:04:02.560 value to shareholders, but also it led to the crash. 0:04:02.560 --> 0:04:04.800 Will be looking at what he says versus what he 0:04:04.800 --> 0:04:07.640 has said before, as well as he says his own failings. 0:04:07.840 --> 0:04:09.880 He also said he doesn't have access to much of 0:04:09.920 --> 0:04:12.240 his own data, personal or professional, so you have to 0:04:12.280 --> 0:04:14.840 wonder why he doesn't have that access and what kind 0:04:14.880 --> 0:04:17.880 of data he will not be able to allegedly provide 0:04:17.880 --> 0:04:20.960 to the lawmakers as they question him if he makes 0:04:21.000 --> 0:04:23.080 it there to the Hill next week, so again the 0:04:23.120 --> 0:04:27.240 House on Tuesday, the Senate on Wednesday, and remember the 0:04:27.279 --> 0:04:29.800 Senators have also been seeking to try to get them 0:04:29.839 --> 0:04:32.640 there as well, but they did not reply to them 0:04:32.680 --> 0:04:35.800 in time for the testimony so far. So logistically, let's 0:04:35.800 --> 0:04:38.839 see if he makes it to both. Team Shannali has 0:04:38.880 --> 0:04:40.680 just gone to the exact point I want to bring up. 0:04:40.680 --> 0:04:43.560 In fact, super Producers, let's bring his tweet back up 0:04:43.600 --> 0:04:46.000 again and look at what he said, because what I'm 0:04:46.000 --> 0:04:49.880 not understanding, Allison, is what would we learn from SPF 0:04:50.640 --> 0:04:55.119 on Capitol Hill that we haven't already learned in the many, many, many, 0:04:55.200 --> 0:05:00.479 many many appearances and communications that he's made the last 0:05:00.520 --> 0:05:05.919 seven to ten days. That's a great question, and I honestly, 0:05:06.040 --> 0:05:08.040 I feel like we're probably gonna hear a lot of 0:05:08.080 --> 0:05:11.760 the same things. You know. Uh, he'll say that he 0:05:11.800 --> 0:05:14.760 didn't intentionally need to commit any sort of fraud. He'll 0:05:14.760 --> 0:05:17.240 probably talk about the fact that maybe he made some 0:05:17.320 --> 0:05:21.839 managerial mistakes. UM So I'm sort of expecting it to 0:05:21.839 --> 0:05:25.320 be along the same Lise. I'm actually maybe more interested 0:05:25.520 --> 0:05:28.120 in hearing the testimony of John J. Ray, who is 0:05:28.160 --> 0:05:31.640 the furren CEO kind of helping with the restructuring of FTX. 0:05:32.160 --> 0:05:35.040 You know, he has access to all of this data. 0:05:35.160 --> 0:05:37.360 He's sifting through these records. Though he's told this up 0:05:37.520 --> 0:05:40.760 they're not very good. Um So, you know, I'm hoping 0:05:40.800 --> 0:05:43.440 that maybe we get some some extra details from what 0:05:43.480 --> 0:05:47.320 we've seen in the bank from seed filing so far. Actually, Shnali, 0:05:47.760 --> 0:05:51.560 new headlines actually continue to come through about this story. 0:05:51.600 --> 0:05:54.120 I saw a tweet or thread of tweets from the 0:05:54.240 --> 0:05:57.320 editor at large of the block. Could you tell us 0:05:57.360 --> 0:05:59.719 what the story is there? Please? Yeah, you are referring 0:05:59.760 --> 0:06:03.120 to the tweet thread by Frank Tapparo, otherwise known as 0:06:03.120 --> 0:06:07.080 syntech Frank, who four days ago released an almost two 0:06:07.200 --> 0:06:11.520 hour podcast speaking with f SVF about what had happened here. 0:06:11.560 --> 0:06:13.800 But really what had happened is he said he did 0:06:13.800 --> 0:06:17.120 not know, and many employees at the Block did not 0:06:17.200 --> 0:06:20.760 know and felt really UH put in a dark here 0:06:20.920 --> 0:06:23.640 because what happened was an executive, the CEO of the Block, 0:06:23.640 --> 0:06:26.520 which is supposed to be an independent news site related 0:06:26.560 --> 0:06:29.919 to crypto, that was bought out by management about a 0:06:29.960 --> 0:06:32.640 year or so ago. Yeah, absolutely, gotta look at that 0:06:32.640 --> 0:06:35.280 tweet right there. So what they are finding out now 0:06:35.440 --> 0:06:39.200 is that CEO had taken personal loans through UH, a 0:06:39.640 --> 0:06:43.679 entity here that did not disclose that SPF had given 0:06:43.720 --> 0:06:46.800 loans to the CEO that ended up being part of 0:06:46.800 --> 0:06:50.200 what helped that executive lead to the buyout. So listen, 0:06:50.240 --> 0:06:53.240 the CEO has stepped down. You are seeing the employees 0:06:53.279 --> 0:06:56.120 really from this, they are saying they did not know 0:06:56.240 --> 0:06:58.520 at all. This was really found out within the past 0:06:58.560 --> 0:07:01.000 couple of days, and as I was saying, just two 0:07:01.080 --> 0:07:05.200 days ago, they had interviewed SPF himself. And it can, 0:07:05.240 --> 0:07:07.839 I mean, it can seem like inside baseball when journalists 0:07:07.839 --> 0:07:10.920 are talking about other journalists. But your heart does have 0:07:10.960 --> 0:07:13.160 to go out to people who feel completely undone, not 0:07:13.240 --> 0:07:16.240 only by their sector collapsing the industry that they've grown 0:07:16.240 --> 0:07:19.400 to love collapsing, but then their own CEO seemingly catching 0:07:19.440 --> 0:07:21.960 them completely off guard and blindsiding them. I'm sure there's 0:07:21.960 --> 0:07:26.240 more to come from that, but overall, Allison, the transparency 0:07:26.240 --> 0:07:29.160 we're going to get from a regulatory perspective, from a 0:07:29.280 --> 0:07:32.040 lawmaker's perspective, and I asked it to Scenalia earlier. I 0:07:32.040 --> 0:07:34.080 asked it to you now, the people that they're going 0:07:34.120 --> 0:07:36.920 to have in front of them giving evidence. I've seen 0:07:37.000 --> 0:07:40.080 some talk on Twitter again that people who feel very 0:07:40.120 --> 0:07:42.440 legitimate in this space haven't been asked, and some people 0:07:42.440 --> 0:07:45.000 who have been asked to speak, perhaps on deemed so 0:07:45.120 --> 0:07:48.360 legitimate just talked us about who we expect to hear from. 0:07:48.560 --> 0:07:51.040 So on the health side of the only person that's 0:07:51.080 --> 0:07:53.520 actually listed as a witness so far is John J. 0:07:53.720 --> 0:07:58.400 Ray So, the current CEO of FTX. On the Senate side, 0:07:58.440 --> 0:08:01.280 we have a pretty smart list as well. One of 0:08:01.320 --> 0:08:04.520 them is a law professor who specializes in sort of 0:08:04.520 --> 0:08:08.800 financial regulation and in technologies. And then the other one 0:08:09.080 --> 0:08:11.920 is Ben mackenzie. So if you want the o C, 0:08:13.040 --> 0:08:15.360 then you would recognize that name. He was Ryan on 0:08:15.440 --> 0:08:18.480 the f C. He's more recently come out as a 0:08:18.560 --> 0:08:23.960 very anti crypto skeptic and sort of crypto commentator. But 0:08:24.040 --> 0:08:26.120 a lot of people were a little surprised to see 0:08:26.120 --> 0:08:30.880 that name on the list. T Mosey. I think we 0:08:30.960 --> 0:08:34.560 all better get some rest this weekend next week, said 0:08:34.600 --> 0:08:38.320 crypto nervous sleep. Thank goodness that I do sleep Friday 0:08:38.400 --> 0:08:40.920 night through Sunday night. All right, bloombergs Allison Verse Brow 0:08:40.920 --> 0:08:45.400 and Shnali Bassek, thank you both. Coming up, Huawei expands 0:08:45.440 --> 0:08:48.600 on the patent monetizing game. We'll discuss that and much 0:08:48.640 --> 0:08:52.719 more with top executives from the company. Next, this is Bloomberg. 0:09:01.160 --> 0:09:03.760 We wouldn't talk about. Another key story, particularly from a 0:09:03.800 --> 0:09:07.240 genio political perspective, Huawei Technologies has agreed to license some 0:09:07.320 --> 0:09:10.760 of its smartphone technologies well to an old rival called Opo. 0:09:11.160 --> 0:09:13.520 One of China's top smartphone brands now, Hwei is one 0:09:13.520 --> 0:09:15.640 of the biggest holders of five G patterns and many 0:09:15.640 --> 0:09:19.000 patterns in fact, and it's historically not been that aggressive 0:09:19.000 --> 0:09:22.640 in monetizing those patterns. But the telecom giant now seeing 0:09:22.679 --> 0:09:25.600 itself perhaps in a need to look in revenues and 0:09:25.600 --> 0:09:28.640 other areas after it's a lucrative handset business was hit 0:09:28.679 --> 0:09:31.440 pretty hard by US trade sanctions that cut it off 0:09:31.679 --> 0:09:34.320 in terms of access to advanced chips. I'm very pleased 0:09:34.320 --> 0:09:37.200 to welcome, therefore to the show Huawei chief security Officer 0:09:37.360 --> 0:09:40.800 Andy Purdy, alongside Huawei's Chief Intellectual Property counsel for the 0:09:40.880 --> 0:09:44.200 United States, Stephen Geisler. Thank you very much, indeed, gentlemen, 0:09:44.200 --> 0:09:48.000 for both being here. And let's start first and foremost 0:09:48.800 --> 0:09:52.080 where we're thinking about the new areas of revenue. And 0:09:52.120 --> 0:09:54.840 Steve and I address this question to you because how 0:09:54.880 --> 0:09:57.720 important now is the monetization of patterns. How are you 0:09:57.760 --> 0:10:00.800 seeing this driving in terms of percentage wise of revenue 0:10:00.840 --> 0:10:05.439 going forward? So are the revenue we will we will 0:10:05.520 --> 0:10:08.439 realize through patent licensing is not going to make up 0:10:08.520 --> 0:10:11.920 for or be in lieu of products sales UH in 0:10:11.960 --> 0:10:14.240 any given year. We're talking about numbers that are in 0:10:14.280 --> 0:10:18.000 the hundreds of millions versus products sales, products and services 0:10:18.080 --> 0:10:22.080 combined being in tens of billions of US dollars. So 0:10:22.200 --> 0:10:24.800 certainly one is not going to be a replacement for 0:10:24.840 --> 0:10:27.720 the other. We are simply trying to make sure that 0:10:28.320 --> 0:10:30.640 based upon the money we've spent through the years on 0:10:30.800 --> 0:10:33.760 R and D and then patenting that we're getting a 0:10:34.040 --> 0:10:38.480 fair return on our our patent expenditures for patenting our 0:10:38.520 --> 0:10:43.120 technologies and also using the patents to reach agreements with 0:10:43.160 --> 0:10:47.120 our competitors and peers to make sure that the innovation 0:10:47.120 --> 0:10:49.480 that goes into global standards such as four G and 0:10:49.520 --> 0:10:53.720 five G telephony, for WiFi, for the audio video codex 0:10:53.760 --> 0:10:56.400 that allow for streaming for for your viewers to watch 0:10:56.440 --> 0:11:00.760 even today's show, that that is recuperated by not only 0:11:00.840 --> 0:11:06.560 Huawei but other large members of the ICT industry for 0:11:06.720 --> 0:11:09.640 what we spend on R and D. I want to 0:11:09.640 --> 0:11:14.559 bring Andy Purdy, Huawei's chief security officer, into the conversation. Andy, 0:11:15.160 --> 0:11:18.079 how much for a bitter pill to swallow? Is this? Huawei? 0:11:18.120 --> 0:11:22.520 You know, you once had a significant handset business that 0:11:22.760 --> 0:11:27.480 was a driver of revenue growth but also just accounted 0:11:27.520 --> 0:11:31.480 for a big chunk of revenue. Now you are pivoting 0:11:32.000 --> 0:11:37.160 essentially again, is it a bitter pill to swallow? We 0:11:37.280 --> 0:11:39.920 deal with reality, and the reality is that we have 0:11:40.040 --> 0:11:44.360 certain challenges. Our survival is first and foremost. Our ability 0:11:44.360 --> 0:11:47.240 to work with partners and customers to innovate and bring 0:11:47.320 --> 0:11:49.880 five G enabled technologies to the world is what we're about. 0:11:49.880 --> 0:11:52.600 To help bring connectivity to the world. And so that's 0:11:52.600 --> 0:11:55.240 where we look at. We've got tremendous opportunities out there. 0:11:55.600 --> 0:11:59.079 The regiment, the international regime that was just talking about 0:11:59.440 --> 0:12:02.360 the idea that there are certain standards and certain companies 0:12:02.360 --> 0:12:05.360 may own patents relative that standards is the international system 0:12:05.360 --> 0:12:08.880 of making sure there's fairness that competitors can buy licenses 0:12:08.920 --> 0:12:12.640 from other competitors is a huge thing on the international stage. 0:12:12.840 --> 0:12:16.680 They help increase innovation and increase competition around the World's 0:12:16.720 --> 0:12:18.520 a it's a great tribute to hell well at Global 0:12:18.800 --> 0:12:22.559 system Works in the I P area. Andy though those words, 0:12:22.600 --> 0:12:27.640 it's about survival. Just how threatened has your business model 0:12:27.679 --> 0:12:32.560 become through US China attentions and how non ending do 0:12:32.600 --> 0:12:35.120 you think that this shutdown will be? This access to 0:12:35.120 --> 0:12:38.760 the United States, this ability to sell into it. Well, 0:12:38.840 --> 0:12:43.240 when you look at our revenues from our revenue is 0:12:43.280 --> 0:12:47.480 dropped about thirty billion dollars, mostly because of our inability 0:12:47.559 --> 0:12:51.000 to to buy ships for our five G phones. And 0:12:51.080 --> 0:12:55.680 so we are emphasizing tremendous investment of this past year 0:12:56.160 --> 0:12:58.880 in R and D or twenty billion dollars in R 0:12:58.880 --> 0:13:02.280 and D and thousands of partnerships to help RAN five 0:13:02.800 --> 0:13:06.560 digital transformation, the different industries such as smart mining and 0:13:06.600 --> 0:13:10.000 smart courts, and the ability to create safer environments and 0:13:10.120 --> 0:13:14.520 reduce sandergy consumption. And basically we are finding our way 0:13:14.559 --> 0:13:18.040 on the road. And we're even doing hardcore scientific research 0:13:18.400 --> 0:13:20.920 on things like wars law and Shannon's limits so that 0:13:21.240 --> 0:13:25.160 the scientific challenges of five G, five point five G 0:13:25.280 --> 0:13:27.319 and six G can be overcome for the benefit of 0:13:27.360 --> 0:13:29.600 the world. So we take the world as we see 0:13:29.600 --> 0:13:31.959 it and we're working hard and innovating. I think we 0:13:32.040 --> 0:13:34.559 had while we're really proud of how we're moving forward 0:13:34.600 --> 0:13:38.560 with partners around the world. Stephen, you're the US Chief 0:13:39.080 --> 0:13:43.840 Intellectual Property Council, although it is still a Chinese maker 0:13:43.920 --> 0:13:46.559 of handsets, cause you took us through how the deal 0:13:46.640 --> 0:13:49.760 came about and how difficult the deal was to get done. 0:13:51.320 --> 0:13:57.000 Certainly the deal was done through bilateral negotiations without the 0:13:57.000 --> 0:14:01.320 need for litigation. That's important because times these deals are 0:14:01.400 --> 0:14:05.880 are only brought about through litigation because we need the 0:14:06.040 --> 0:14:08.880 intervention of courts to help decide things such as what 0:14:09.000 --> 0:14:11.920 is the proper rate and what products are are should 0:14:11.920 --> 0:14:15.040 be subject to a license agreement? Here that was not necessary. 0:14:15.960 --> 0:14:19.000 We also view that this is a key step forward. Um, 0:14:19.040 --> 0:14:22.040 it's not our first Chinese cross license by any means 0:14:22.120 --> 0:14:25.360 or as it oppos but it is a major sign 0:14:25.640 --> 0:14:30.720 that the Chinese regime for patent protection it continues to mature. 0:14:31.160 --> 0:14:35.880 These are are two large competitors, UH bringing about a 0:14:36.440 --> 0:14:41.080 very important agreement between the two of us. Andy. I 0:14:41.120 --> 0:14:45.040 asked you earlier if having to license your tech rather 0:14:45.080 --> 0:14:48.440 than selling handsets is a bit of pill to swallow, 0:14:48.480 --> 0:14:51.720 and you said, it's the reality where we are. Now. 0:14:52.520 --> 0:14:55.960 What is the reality of Huawei being able to sell 0:14:56.560 --> 0:14:59.480 not just handsets in terms of smartphones, but are the 0:14:59.520 --> 0:15:03.600 hard into the United States directly? When how does that 0:15:03.640 --> 0:15:09.920 come about? Our emphasis for the foreseeable future is in 0:15:10.000 --> 0:15:12.840 those parts of the world, and there are many that 0:15:12.880 --> 0:15:16.440 are open to working with us, helping open the partnering 0:15:16.480 --> 0:15:19.280 from us, and so they're tremendous opportunities around the world, 0:15:19.280 --> 0:15:21.680 and so that's what we're focusing on right now, and frankly, 0:15:21.720 --> 0:15:23.600 as those of us in the United States, and we 0:15:23.680 --> 0:15:25.440 look at some of the things we're doing around the 0:15:25.480 --> 0:15:28.640 world to help bring connectivity to the under connected, we 0:15:28.760 --> 0:15:31.120 hope that in the United States there can be a 0:15:31.160 --> 0:15:34.840 little more action and a little less talk about connecting 0:15:35.000 --> 0:15:38.160 the rural America in a resilient way and frankly, helping 0:15:38.200 --> 0:15:41.240 you connect and have appropriate devices for distressed communities or 0:15:41.320 --> 0:15:44.840 communities in urban areas of the country. Americans really need 0:15:44.920 --> 0:15:50.800 to get the benefit of connectivity overall. Is that argument Landing? 0:15:51.200 --> 0:15:54.240 And who are you speaking to here in the United States? 0:15:54.320 --> 0:15:56.920 Are people do they still want in any way to 0:15:57.040 --> 0:16:01.240 grant access directly or indirectly for your technology they feel 0:16:01.240 --> 0:16:02.920 the need for it, because I was amazed to see 0:16:02.960 --> 0:16:05.200 just how many patterns you put into the United States, 0:16:05.200 --> 0:16:09.320 for example, p a year like you're number one. M Well, 0:16:10.080 --> 0:16:12.320 as I said, our focus is not to do business 0:16:12.360 --> 0:16:14.040 in the United States, and as we talk about the 0:16:14.160 --> 0:16:17.160 lessons we are learning and five G transformation around the 0:16:17.160 --> 0:16:19.720 world is not to enable us in new business. We 0:16:19.760 --> 0:16:21.720 think there are lessons that we're learning. We think there 0:16:21.720 --> 0:16:24.280 are lessons as the United States can learn from success 0:16:24.280 --> 0:16:26.840 stories and other parts of the world. But I mentioned 0:16:26.840 --> 0:16:29.960 the smart mining and smart ports, But but healthcare and 0:16:30.000 --> 0:16:35.920 manufacturing consistency, reducing energy consumption, and telecommunications. The United States 0:16:36.040 --> 0:16:38.000 needs to step up and be much more active in 0:16:38.040 --> 0:16:40.240 these things to help the competitiveness of the United States 0:16:40.280 --> 0:16:44.920 and help the American people. I'm interested, Stephen, and I'm 0:16:44.920 --> 0:16:47.120 wondering if you can take us in the money direction. 0:16:47.320 --> 0:16:51.640 In your focus as Chief Intellectual Property Council, you are 0:16:51.800 --> 0:16:53.680 not only just announcing, of course, to deal with oper 0:16:53.800 --> 0:16:55.760 but you made public for the first time that you're 0:16:55.800 --> 0:17:00.120 also doing licensing five G Samsung. How much with some 0:17:00.160 --> 0:17:02.400 of these partners, particularly when it comes to Samsung, to Apple, 0:17:02.480 --> 0:17:05.000 to the huge players in this space, how much you're 0:17:05.080 --> 0:17:08.040 charging them in terms of patent use, and are you 0:17:08.160 --> 0:17:10.399 thinking about royalties in a different way. You're going to 0:17:10.440 --> 0:17:14.920 have to change the maths and be more aggressive. Well so, so, first, 0:17:15.320 --> 0:17:18.159 we don't view ourselves as aggressive. We are certainly active 0:17:18.160 --> 0:17:21.840 in the licensing space, uh where third parties have done 0:17:21.880 --> 0:17:25.760 independent studies of our licensing, our rates for our patents 0:17:25.840 --> 0:17:29.080 versus many of our competitors. We actually are much more 0:17:29.160 --> 0:17:30.879 in the middle of the pack. So we are not 0:17:31.040 --> 0:17:35.000 looking to set the highest rates in in any industry 0:17:35.280 --> 0:17:39.840 or technology. Um. The importance of of U S patents, 0:17:39.840 --> 0:17:42.560 for instance, which which you've mentioned previously, is still important 0:17:42.640 --> 0:17:44.879 regardless of whether we ever sell a product again in 0:17:44.920 --> 0:17:49.280 the United States. Our patents our technologies are being used 0:17:49.320 --> 0:17:53.159 by US companies. Many of those companies have have freely 0:17:53.440 --> 0:17:57.480 without litigation, have joined into license agreements with Whalwei to 0:17:57.600 --> 0:18:00.639 pay for the rights to use our patent of technology 0:18:00.640 --> 0:18:03.080 in the United States. No one in the United States 0:18:03.080 --> 0:18:06.800 can use WiFi, particularly the new WiFi six which is 0:18:06.880 --> 0:18:11.040 the the a X version without using Quawis technology. Same 0:18:11.080 --> 0:18:15.280 things four genes five G. We are licensing car manufacturers 0:18:15.280 --> 0:18:17.920 and their suppliers all around the world, from Japan to 0:18:18.080 --> 0:18:21.119 China to the UK, to Germany to the United States 0:18:21.160 --> 0:18:24.720 on their use of our four G technology in connected cars. 0:18:25.280 --> 0:18:29.040 And so that is the important thing is making sure 0:18:29.040 --> 0:18:33.159 people understand the difference between global use of standardized technology, 0:18:33.480 --> 0:18:36.960 which which always a leader in in providing that technology, 0:18:37.480 --> 0:18:42.840 versus product sales. Okay, Huawei chief Security Officer Andy Perdy 0:18:42.880 --> 0:18:45.719 and Chief Intellectual Property Council for the U S Stephen 0:18:45.760 --> 0:18:49.159 Guys that thank you both and concerns Linga that some 0:18:49.200 --> 0:18:52.240 of the biggest Chinese tech firms will be delisted in 0:18:52.280 --> 0:18:55.200 the US. As of Wednesday, about one of j D 0:18:55.400 --> 0:18:59.400 dot com shaes was circulating in Hong Kong's settlement system. 0:18:59.440 --> 0:19:02.600 This is in Vesta's move to convert them from US exchanges. 0:19:02.640 --> 0:19:05.840 That's a near doubling from the end of according to 0:19:05.880 --> 0:19:10.159 Bloomberg calculation. Similarly, Ali Barber's Hong Kong listed share portion 0:19:10.280 --> 0:19:13.680 rows eleven percentage points during the same period, a steady 0:19:13.720 --> 0:19:17.159 shift into Asia, which shows traders are continuing to hedge 0:19:17.400 --> 0:19:21.520 risks associated with the US China spat. Now coming up, 0:19:21.880 --> 0:19:26.159 everyone's doing it? Are you? Lenser Ai? It's the latest 0:19:26.200 --> 0:19:28.080 d ai application. You've got to take my word for it. 0:19:28.119 --> 0:19:32.720 That makes yourselfies look even better? Caroline and I, well, 0:19:32.800 --> 0:19:34.359 I don't want to give it too much away. Just 0:19:34.400 --> 0:19:49.680 wait and see all that next. This is Bloomberg. So 0:19:50.080 --> 0:19:55.760 that's us. That's Caroline right there, that's supposedly me using 0:19:55.800 --> 0:19:58.920 the lenser Ai app and all in one image editing 0:19:58.920 --> 0:20:05.480 app for your selfies. Don't yours are really good? You 0:20:05.560 --> 0:20:09.040 look really hot, really smart? Even it does this remotely 0:20:09.080 --> 0:20:11.360 look like me, not in the slightest. I'm kind of 0:20:11.800 --> 0:20:15.320 a bit depressed that. I mean what I've just morphed 0:20:15.359 --> 0:20:19.520 into sort of an artistic Italian gentlemen. I've morphed into 0:20:19.520 --> 0:20:22.160 someone I really don't recognize, but they're kind of hot. 0:20:22.760 --> 0:20:24.720 It was an interesting experience, like a lot of my 0:20:24.920 --> 0:20:29.840 photos were rejected, but we're back the real you and I. 0:20:30.280 --> 0:20:33.640 We just there's one photo where I look so unwell 0:20:33.720 --> 0:20:37.800 and miserable and completely unlike myself that I was kind 0:20:37.800 --> 0:20:40.439 of a bit a bit depressed by it, but probably, 0:20:40.480 --> 0:20:41.800 as I kept saying, it sort of felt like my 0:20:41.880 --> 0:20:44.679 insides after all the holiday parties. But I am interested 0:20:44.720 --> 0:20:47.840 in that. Some people out there, right, one particular noted 0:20:47.840 --> 0:20:51.520 economist thinks this sort of AI, particularly chat GPT for example, 0:20:51.880 --> 0:20:56.479 is great strides in technology, right, I mean, is this 0:20:56.560 --> 0:20:58.760 the best thing since sliced bread? Is this a game 0:20:58.840 --> 0:21:01.520 change of revolutionary? As far as I can tell, it's 0:21:01.560 --> 0:21:04.000 just strange pictures of you and I, but you got 0:21:04.119 --> 0:21:07.040 to experience. Yeah, they've got to sew pll on it. 0:21:07.520 --> 0:21:10.359 Larry Summers says this will change us in terms of 0:21:10.400 --> 0:21:14.200 it's as important as the wheel and fire. Seemingly actually, 0:21:14.240 --> 0:21:26.680 most think it is revolutionary. This is broom back. It's 0:21:26.720 --> 0:21:29.520 not like there's an incredible amount of money that's ready 0:21:29.520 --> 0:21:32.280 to be deployed. I think the pace of investments in 0:21:32.320 --> 0:21:34.840 the venture ecosystem was masked a bit by capital that 0:21:34.920 --> 0:21:38.000 was coming from non traditional ventures and corporate balance sheets 0:21:38.160 --> 0:21:40.199 and so I think today what you're gonna see is 0:21:40.760 --> 0:21:44.399 a shift, probably not in terms of opportunity sets, in 0:21:44.480 --> 0:21:47.080 terms of how fast money gets deployed in the ecosystem, 0:21:47.200 --> 0:21:48.600 but I think you're going to see people look for 0:21:48.680 --> 0:21:51.160 complete different dynamics within the balance sheets and the capital 0:21:51.200 --> 0:21:55.080 structures as the management team that they're investing in. That 0:21:55.240 --> 0:21:57.959 was pitch Books Director of Research needs are To Whooney, 0:21:58.359 --> 0:22:01.000 giving his take on the current dynamics at play in 0:22:01.000 --> 0:22:04.359 the world of VC. It's because someone else's take. Denish A. 0:22:04.480 --> 0:22:07.920 Kiers with us now general partner at Lux Capital, a 0:22:08.000 --> 0:22:12.000 firm focusing on investments in emerging technologies. Four billion dollars 0:22:12.119 --> 0:22:16.199 in assets under management. It's been a week. It's been 0:22:16.520 --> 0:22:20.320 a big week for markets, for the world economics. Karen 0:22:20.320 --> 0:22:22.320 and I have been talking a lot about data. You know, 0:22:22.400 --> 0:22:25.480 there was various data sets, but the big takeaway is 0:22:25.520 --> 0:22:27.720 that whether you do it on a volume basis, deal 0:22:27.760 --> 0:22:32.520 count basis, dollar value basis, two is nothing compared to 0:22:33.320 --> 0:22:37.800 one in your world. Why, well, it's great to be here, 0:22:37.840 --> 0:22:40.840 Thanks for having me. I was expecting my lensa avatar 0:22:40.960 --> 0:22:43.440