WEBVTT - Tech at Davos and Coinbase in Court 0:00:01.639 --> 0:00:05.960 From Mahart where Innovation, Money and Power Collie in Silicon 0:00:06.040 --> 0:00:06.880 Vallet Nbon. 0:00:07.280 --> 0:00:10.720 This is Bloomberg Technology with Caroline Hide. 0:00:10.400 --> 0:00:28.240 And Ed Ludlow Imed Ludlow in San Francisco. Caroline Hides 0:00:28.280 --> 0:00:31.120 off this week. This is Bloomberg Technology coming up on 0:00:31.160 --> 0:00:34.239 the program. Full coverage from the World Economic Forum. As 0:00:34.240 --> 0:00:37.360 tech heavyweights continue to descend on Davos, we hear from 0:00:37.400 --> 0:00:39.360 the CEOs of Cisco. 0:00:39.280 --> 0:00:40.880 Qualcom and many more. 0:00:41.360 --> 0:00:45.080 Plus the SEC and Coinbase face off in court today 0:00:45.520 --> 0:00:48.360 over the regulator's crypto authority after. 0:00:48.240 --> 0:00:50.280 Suing the exchange last July. 0:00:50.360 --> 0:00:53.440 Will bring you the latest from the trial and AI 0:00:53.560 --> 0:00:57.360 startup Amthropic is building out technology for its chatbot to 0:00:57.440 --> 0:00:59.520 analyze images as it seeks. 0:00:59.240 --> 0:01:00.920 To catch up with big competitors. 0:01:00.960 --> 0:01:04.080 We'll bring you the details and so much more throughout 0:01:04.240 --> 0:01:08.000 the hour. Let's focus on the technology sector. In financial markets, 0:01:08.040 --> 0:01:10.319 the story of the week continues to be FED speak, 0:01:10.360 --> 0:01:13.760 and what we're seeing this Wednesday morning is traders pair 0:01:13.880 --> 0:01:17.080 back their expectations for FED rate cuts in twenty twenty four. 0:01:17.319 --> 0:01:19.920 How that manifests itself is a lot of red on 0:01:19.959 --> 0:01:23.560 the screen behind me. Some underperformance in the technology sector 0:01:23.560 --> 0:01:25.039 and as that one hundred is kind of my go 0:01:25.160 --> 0:01:28.240 to right because of the number of technology or concentration 0:01:28.360 --> 0:01:30.880 of technology shares. But look at the Golden Dragon China 0:01:30.920 --> 0:01:35.800 Index US listed or ADRs of Chinese technology companies underperforming 0:01:35.959 --> 0:01:40.440 the semiconductor space, or socks also underperforming, and Bitcoin kind 0:01:40.440 --> 0:01:43.360 of caught up in this risk of mentality, pulling back 0:01:43.640 --> 0:01:47.160 back towards forty two thousand US dollars per token. 0:01:47.200 --> 0:01:48.760 There's a lot in the news cycle as well. 0:01:48.840 --> 0:01:52.080 Tesla continues to be a driver to the downside in 0:01:52.160 --> 0:01:54.720 major indices. That is a stock that is down by 0:01:54.720 --> 0:02:01.280 two point seven percent. Price cuts on Model Y in Europe, Netherlands, Grants, Germany, 0:02:01.560 --> 0:02:04.520 other markets mid single digits, pulling back on the price 0:02:04.560 --> 0:02:07.000 of Model Y, which they just confirmed in the last 0:02:07.080 --> 0:02:10.480 hour or so. Apple under pressure down a percentage point, 0:02:10.560 --> 0:02:14.760 a lot about their failure in court to appeal the 0:02:14.800 --> 0:02:17.960 original quarter of appeal's outstore decision, but data out overnight 0:02:18.280 --> 0:02:22.040 Visa VI, their position against sam Sum in the global market. 0:02:22.080 --> 0:02:23.800 We're going to go to Bloombos Mark German on that. 0:02:24.040 --> 0:02:26.840 And then Alphabet continuing to be under pressure. The story 0:02:26.880 --> 0:02:30.280 with Alphabet Pan Google has been one of layoffs now 0:02:30.400 --> 0:02:33.880 here's what's happening today. The SEC and Coinbase are swearing 0:02:33.880 --> 0:02:37.080 off in court, as the crypto exchange argues the regulator 0:02:37.440 --> 0:02:41.800 is overstepping its authority. After the regulator sued the company 0:02:41.800 --> 0:02:45.680 in June of twenty twenty three for operating as quote, 0:02:45.720 --> 0:02:50.480 an illegal securities exchange. Bloomberg Shnali Bassek sat down with 0:02:50.560 --> 0:02:54.520 coinbas CEO Brian Armstrong to discuss the legal battle ahead 0:02:54.720 --> 0:02:55.720 at the end of last year. 0:02:55.840 --> 0:02:56.360 Listen to this. 0:02:57.240 --> 0:02:59.519 We work with regulators all over the world. Are the 0:02:59.560 --> 0:03:03.520 regulars here in the US. I think I'm a reasonable 0:03:03.520 --> 0:03:07.360 person to get along with. But unfortunately the SEC under 0:03:07.960 --> 0:03:11.519 this chair has taken a regulation by enforcement approach instead 0:03:11.520 --> 0:03:13.480 of creating a clear rule book in the US that 0:03:13.520 --> 0:03:15.720 can allow this industry to be built in a safe 0:03:15.720 --> 0:03:16.399 and trusted way. 0:03:16.800 --> 0:03:19.720 Joining US now is Bloomberg Shinali basegad in New York. 0:03:19.800 --> 0:03:20.280 Can look. 0:03:20.720 --> 0:03:23.200 It's an interesting Wednesday morning. I think there's a lot 0:03:23.240 --> 0:03:26.560 of eyeballs on this, a lot of anticipation on the 0:03:26.600 --> 0:03:28.400 battle between coinbase and SEC. 0:03:28.440 --> 0:03:30.760 Give me the basics of the dispute. 0:03:31.160 --> 0:03:33.919 The base six of the dispute was that you had 0:03:33.919 --> 0:03:36.640 the SEC in the middle of last year sou Coinbase 0:03:37.120 --> 0:03:41.760 saying that they had operated as an unregistered exchange and broker, 0:03:42.040 --> 0:03:45.000 and they also targeted more than a dozen assets listed 0:03:45.080 --> 0:03:49.360 on the exchange, saying that they were listed as unregistered securities. 0:03:49.640 --> 0:03:53.160 So you had the fight back from Coinbase saying that 0:03:53.600 --> 0:03:56.280 they should be dismissing this. They foul a motion to dismiss, 0:03:56.560 --> 0:03:59.080 and we are going through the process. Now, this could 0:03:59.120 --> 0:04:03.160 be a very long process because Coinbase is really fighting 0:04:03.280 --> 0:04:06.960 a lot of definitions here, particularly the idea of all 0:04:07.000 --> 0:04:10.160 of these assets being on listed securities and the meaning 0:04:10.240 --> 0:04:15.600 of an investment contract versus investment on its own. Now, 0:04:15.640 --> 0:04:18.919 remember a lot of this lawsuit really goes around the 0:04:18.960 --> 0:04:23.880 idea here of the SEC overstepping its reach as mandated 0:04:23.920 --> 0:04:26.840 by the law. Now we'll see how this goes on, 0:04:26.960 --> 0:04:29.040 but there is a chance that this could take weeks, 0:04:29.360 --> 0:04:32.120 even months. It could go well into the next year 0:04:32.240 --> 0:04:34.680 or so, depending on how the judges rule. This is 0:04:34.720 --> 0:04:37.880 a case that could go into discovery. But certainly the 0:04:37.960 --> 0:04:40.520 reason it's so highly watched by the industry, not just 0:04:40.600 --> 0:04:44.040 investors of coinbase, is because it does fundamentally get down 0:04:44.080 --> 0:04:48.280 to the heart of the SEC's jurisdiction of the crypto industry, 0:04:48.360 --> 0:04:51.599 as well as what is and isn't a security when 0:04:51.640 --> 0:04:54.159 it comes to all of these tokens that are listed 0:04:54.200 --> 0:04:55.120 on these exchanges. 0:04:56.120 --> 0:04:58.440 All right, BLOOMBOGTIONALI basseg that is one you will be 0:04:58.520 --> 0:05:01.799 watching closely throughout when and I'm sure we'll discuss twenty 0:05:01.839 --> 0:05:03.960 four hours from now, Thank you very much. We've got 0:05:03.960 --> 0:05:06.640 to head over to Davos and what's happening in Switzerland. 0:05:06.640 --> 0:05:08.320 Cisco CEO Chuck Robin. 0:05:08.160 --> 0:05:12.440 Sat down with Bloomberg's Jonathan Ferrow to discuss Cisco's transition 0:05:12.960 --> 0:05:16.119 to being a software company amid an AI boom. 0:05:16.200 --> 0:05:16.760 Listen to this. 0:05:17.480 --> 0:05:21.120 There's still more to do. There's still more software assets 0:05:21.160 --> 0:05:23.600 we can build organically, probably some men organic stuff we 0:05:23.640 --> 0:05:23.880 can do. 0:05:24.400 --> 0:05:25.240 But at the same. 0:05:25.080 --> 0:05:30.200 Time, with the AI explosion, we're a significant recipient of 0:05:30.240 --> 0:05:34.360 the infrastructure benefit underneath the GPUs in both the web 0:05:34.400 --> 0:05:37.160 scale as well as ultimately in the enterprise. So our 0:05:37.200 --> 0:05:41.520 hardware business, which in some cases has subscriptions associated with 0:05:41.600 --> 0:05:43.960 and some cases do not, we think that both of 0:05:43.960 --> 0:05:45.800 them can grow over the next few years. 0:05:46.000 --> 0:05:47.560 This is a tough question to answer, but do you 0:05:47.560 --> 0:05:50.600 think investors have fully internalized your view on where things 0:05:50.600 --> 0:05:52.560 are going and your message. 0:05:52.760 --> 0:05:54.960 I think they've internalized the message. I think they're just 0:05:55.040 --> 0:05:56.839 looking for. One of the things that we've talked about 0:05:56.920 --> 0:06:00.000 is that this transition to software should give us more 0:06:00.120 --> 0:06:05.040 predictability and less volatility. And we've seen that come into play, 0:06:05.560 --> 0:06:07.320 but we still probably have a little bit too much. 0:06:07.640 --> 0:06:11.760 And so we've been rewarded for what we've accomplished, and 0:06:11.800 --> 0:06:13.799 I think as we continue to do that, we continue 0:06:13.839 --> 0:06:16.279 to deliver, you'll see that in the future. 0:06:16.400 --> 0:06:18.240 You know, from bankre for a couple of days, everyone 0:06:18.279 --> 0:06:20.560 wants to be a part of the AI story. What 0:06:20.680 --> 0:06:24.039 surprised us, I speak for myself. What surprised me last 0:06:24.120 --> 0:06:27.279 year is how quickly it became real. It wasn't just 0:06:27.279 --> 0:06:29.680 a story that companies were selling. It was something they 0:06:29.680 --> 0:06:32.719 were monetizing. And the growth was exponential in some cases, 0:06:32.720 --> 0:06:34.800 and VideA a great example of that. Can you walk 0:06:34.880 --> 0:06:37.320 us through on way you're seeing actual, real tangible growth 0:06:37.400 --> 0:06:39.200 right now off the back of what's developing. 0:06:39.560 --> 0:06:41.839 Yeah, I've actually told my team you're not allowed to 0:06:42.000 --> 0:06:45.440 espouse about AI unless you follow it with a tangible 0:06:45.600 --> 0:06:48.520 way that we're implementing whatever you were talking about, because 0:06:48.520 --> 0:06:52.360 there's so much noise in the system. Look, I think 0:06:52.400 --> 0:06:56.279 if we're building the infrastructure that's going to support underpinning 0:06:56.320 --> 0:07:00.599 all the AI networks. So that's happening today. We're running 0:07:00.600 --> 0:07:03.440 pilots right now with webscale players. We're working on We're 0:07:03.440 --> 0:07:07.200 working on a lot of design around future integrated stacks 0:07:07.200 --> 0:07:08.720 that we're going to take to the enterprise to help 0:07:08.760 --> 0:07:13.120 them do it. Secondly, we're looking at how we can 0:07:13.200 --> 0:07:16.240 deliver a better customer experience for our customers by leveraging 0:07:16.600 --> 0:07:19.760 jen Ai, which everybody, every company is or should be doing. 0:07:20.720 --> 0:07:24.480 We're building security assistance as an example, to help customers 0:07:24.560 --> 0:07:26.840 navigate all the security tools you have and actually make 0:07:26.960 --> 0:07:29.320 sense of a lot of it more rapidly. We're doing 0:07:29.360 --> 0:07:33.720 the same in collaboration. We're transcribing meetings and so there's 0:07:33.720 --> 0:07:35.760 a lot of stuff that's going on right now. But 0:07:35.840 --> 0:07:38.800 I do think some of the greatest applications we have 0:07:38.880 --> 0:07:39.960 no idea what they are yet. 0:07:40.200 --> 0:07:44.960 That was Cisco CEO Chuck Robins add in a snowy Davos. Meanwhile, 0:07:45.000 --> 0:07:49.760 another story we're tracking computing, quantum computing create a cyber 0:07:49.840 --> 0:07:54.440 security armageddon is the question. The answer yes, According to 0:07:54.480 --> 0:07:59.120 one executive from IBM. Quantum computers, which accelerate processing power 0:07:59.240 --> 0:08:03.840 by performing calculations in parallel rather than sequentially, will make 0:08:03.920 --> 0:08:08.720 existing encryption systems obsolete. Speaking in Davos, IBM's general manager 0:08:08.720 --> 0:08:12.920 for EMEA sees the quantum era coming by twenty thirty, 0:08:12.960 --> 0:08:15.960 so a little weight on an exciting nascent technology, and 0:08:15.960 --> 0:08:18.160 they're coming up here on the program, we're going to 0:08:18.160 --> 0:08:20.400 talk about the state of the global supply chain amid 0:08:20.520 --> 0:08:23.200 the crisis and what's happening in the Red Sea with 0:08:23.280 --> 0:08:33.920 Core Kose, chief industry officer at Everstream Analytics. 0:08:35.040 --> 0:08:36.880 You can't predict how long this will last, but even 0:08:36.920 --> 0:08:38.400 if it lasts a long time, I think you'll see 0:08:38.400 --> 0:08:40.480 that the ocean market kind of stabilized and gets to 0:08:40.520 --> 0:08:45.480 a relatively normal pricing environment versus long term historical averages. 0:08:45.520 --> 0:08:47.640 Of course, it'll be higher than it was going to 0:08:47.679 --> 0:08:50.679 be if this hadn't happened, but I think the world 0:08:50.720 --> 0:08:51.400 will recover. 0:08:54.000 --> 0:08:56.280 You cannot predict how long the impact will last, but 0:08:56.320 --> 0:08:59.520 we're doing everything we can on Bloomberg technology to track 0:08:59.559 --> 0:09:02.240 that impact in real time. That was Ryan Pederson of 0:09:02.280 --> 0:09:05.080 Flexport with us the other day with his outlook for 0:09:05.120 --> 0:09:08.480 the supply chain impact amid the Red Sea crisis. Earlier 0:09:08.520 --> 0:09:10.920 today we heard from the CEO of MASK who says 0:09:10.960 --> 0:09:14.240 these events will hamper transit for a few months. 0:09:14.280 --> 0:09:14.400 Now. 0:09:14.480 --> 0:09:18.160 Joining us now is Core Kose, chief industry officer at 0:09:18.200 --> 0:09:23.160 Everstream Analytics, a leading supply chain insights and risk analytics company. 0:09:23.160 --> 0:09:25.880 And you also have the latest data. The latest is 0:09:25.920 --> 0:09:29.040 that around two hundred billion dollars worth of goods or 0:09:29.120 --> 0:09:33.720 volume of goods have been diverted to new routes because 0:09:33.760 --> 0:09:34.480 of the Red Sea. 0:09:34.679 --> 0:09:37.400 Just explain that that data and that math to us. 0:09:38.440 --> 0:09:40.720 Yeah, absolutely, thank you for having me yet today. 0:09:41.000 --> 0:09:44.400 So when we're looking at the current shipping decisions, a 0:09:44.400 --> 0:09:48.200 lot of companies have decided to take the longer route. 0:09:48.720 --> 0:09:51.000 Until that decision was made, of course, some of it 0:09:51.120 --> 0:09:55.080 was halted before going the longer route. So the amount 0:09:55.080 --> 0:09:58.880 that volume of trade that has been delayed not stop 0:09:59.040 --> 0:10:03.000 necessarily at around two hundred billion dollars. Now, compare that 0:10:03.120 --> 0:10:06.440 to the traffic jam at the Panama Canal that was 0:10:06.600 --> 0:10:09.880 around two hundred and seventy billion dollars as of the 0:10:09.960 --> 0:10:13.280 latest data, and compared to the South China Sea trade 0:10:13.520 --> 0:10:16.160 that we're looking at the yearly volume of five trillion 0:10:16.280 --> 0:10:18.439 to just give you a little bit of perspective, there 0:10:18.480 --> 0:10:22.000 is somewhat of a traffic gem, but not necessarily a 0:10:22.080 --> 0:10:25.640 chalk point at this current time for economies around the globe. 0:10:25.840 --> 0:10:28.839 Yeah, I spoke to a source at Tesla at the 0:10:28.920 --> 0:10:32.040 end of last week and the way that the source 0:10:32.080 --> 0:10:35.760 explained it to me was that Tesla had to divert 0:10:36.000 --> 0:10:40.199 ships that were carrying components destined for its Berlin plants. 0:10:40.880 --> 0:10:43.440 But it's not that those components won't get there at all, 0:10:43.520 --> 0:10:45.320 they're just going to take longer to get there. And 0:10:45.360 --> 0:10:48.240 you would have seen the reports, including from Bloomberg that 0:10:48.360 --> 0:10:50.679 as a result, they're going to have some downtime at 0:10:50.679 --> 0:10:53.680 that plant to make up for the shortfall and product. 0:10:54.280 --> 0:10:55.640 But there's also a cost. 0:10:55.400 --> 0:10:59.280 Consideration in how much a technology company has to pay 0:10:59.760 --> 0:11:03.880 to move those goods. What are you saying on that side, So. 0:11:03.800 --> 0:11:06.640 We're looking at, of course a cost increase from the 0:11:06.679 --> 0:11:12.120 perspective of the logistics burden. But in comparison and maybe counterintuitive, 0:11:12.240 --> 0:11:15.599 the current route through the Sewers Canal, with the increased 0:11:15.720 --> 0:11:19.080 rates and insurance and also the cost of the canal, 0:11:19.559 --> 0:11:23.199 is actually more expensive than the longer route at the 0:11:23.240 --> 0:11:25.560 same time of course, we're looking at a two weeks 0:11:25.600 --> 0:11:30.960 longer period of transit and given supply chains operating highly efficiently, 0:11:31.080 --> 0:11:35.520 especially in automotive for instance, where after a period of normalization, 0:11:36.080 --> 0:11:39.920 cost management has taken a priority. In the overall management, 0:11:40.200 --> 0:11:44.079 we're looking at just in time environments being re established. 0:11:44.080 --> 0:11:46.959 So a two weeks period of time is actually the 0:11:48.000 --> 0:11:52.840 underlying factor for some of those production closures. At Suzuki 0:11:53.000 --> 0:11:55.840 Volvo it's only a couple days, so they managed it 0:11:55.960 --> 0:12:00.280 quite efficiently. In that Volkswagen has not announced any of it, 0:12:00.840 --> 0:12:04.160 and Tesla has announced around two weeks off a production stuff. 0:12:04.440 --> 0:12:07.320 So we can also look at how those inventry management 0:12:07.400 --> 0:12:13.480 systems are established. Back to pre pandemic KPIs. 0:12:13.760 --> 0:12:16.920 Okay, Corey KSEEV everystream analytics with the real time data 0:12:17.000 --> 0:12:19.240 impact of what's happening in the Red Sea. 0:12:19.760 --> 0:12:21.280 Thank you. Let's head back to Dabos. 0:12:21.320 --> 0:12:25.360 Christiano Ramon quowcom CEO, spoke with Bloombergs, Jonathan Ferrer and 0:12:25.440 --> 0:12:29.320 A Marie Horden about business in another key market, China. 0:12:30.280 --> 0:12:34.120 Our business actually with China actually increase as we diversify, 0:12:34.960 --> 0:12:38.400 you know, our company not only into phones but into 0:12:38.520 --> 0:12:43.680 PCs and cars and industrial we expanded our relationships with China. 0:12:43.720 --> 0:12:47.320 Here's my simple answer. I think to that question, any 0:12:47.480 --> 0:12:51.800 company that has a leading technology product and is a 0:12:51.840 --> 0:12:54.839 product that becomes very important for the digital transformation of 0:12:54.920 --> 0:12:58.000 many industries such as automotive and others, you're going to 0:12:58.040 --> 0:12:59.760 have a big business and channel. It's just a function 0:12:59.800 --> 0:13:04.400 of I think we have been so far in a 0:13:04.440 --> 0:13:07.600 stable place. We have to monitor the situation like every 0:13:07.679 --> 0:13:11.480 other company, and you know, I will continue to believe 0:13:11.559 --> 0:13:13.439 and that's what I had said. At the end of 0:13:13.440 --> 0:13:17.720 the day, strong commercial relationships between American enterprises and our 0:13:17.800 --> 0:13:21.320 Chinese counterparts will be one of the things that could 0:13:21.360 --> 0:13:23.120 bring stability to the relationship. 0:13:23.280 --> 0:13:26.000 Does that monitoring get more challenging if you were to 0:13:26.000 --> 0:13:28.200 see a former President Trump went back to the White 0:13:28.240 --> 0:13:28.920 House next year. 0:13:29.280 --> 0:13:33.439 Look, we're just focused on our technology and we want 0:13:33.480 --> 0:13:36.920 to have markets that we can sell our technology. I 0:13:36.920 --> 0:13:39.560 think at the end of the day, one important thing 0:13:39.679 --> 0:13:45.400 to understand is certain certain technologies are globally interconnected. So 0:13:46.000 --> 0:13:48.400 you're going to have customers in different locations. You have 0:13:48.400 --> 0:13:50.680 customers in Europe and Japan, they will have a business 0:13:50.679 --> 0:13:52.680 in China as well, And you want to be a 0:13:52.720 --> 0:13:53.880 global supplier to them. 0:13:53.920 --> 0:13:55.560 I can see the cull calls saying, just round a corner. 0:13:55.679 --> 0:13:57.360 Very happy with that response that you didn't take to 0:13:57.360 --> 0:13:59.640 buy and talk about the form of President Christna. I 0:13:59.640 --> 0:14:01.400 want to tell about the direction of traveling the global 0:14:01.440 --> 0:14:05.080 economy for chip maker, just for the industry. Do you 0:14:05.080 --> 0:14:06.559 think we're close to the point where they have to 0:14:06.559 --> 0:14:09.160 pick a country, have to choose a side. We're either 0:14:09.160 --> 0:14:12.200 going to supply China or we're supplying Europe in America. 0:14:12.320 --> 0:14:13.680 How close are we to that moment? 0:14:14.280 --> 0:14:16.960 Look, I don't think we are right now at this 0:14:17.080 --> 0:14:21.800 point in the industries that we serve, and it's one 0:14:21.840 --> 0:14:24.880 of those things that, yeah, if it changes, I think 0:14:24.920 --> 0:14:29.120 companies have to adapt. We have seen that some industries 0:14:29.520 --> 0:14:30.320 had to face that. 0:14:30.600 --> 0:14:31.400 You have some. 0:14:31.480 --> 0:14:34.240 Industries that that's kind of the reality for different reasons, 0:14:34.280 --> 0:14:37.160 whether it's a cloud company or social media company at 0:14:37.160 --> 0:14:40.520 et cetera. We have been not at this space. So 0:14:41.400 --> 0:14:43.040 it's something that we're going to have to worry about 0:14:43.040 --> 0:14:43.760 in in the future. 0:14:43.920 --> 0:14:45.360 What industry do you think is going to be the 0:14:45.400 --> 0:14:46.600 biggest area of growth for you? 0:14:47.920 --> 0:14:52.840 We are very pleased what's happening with automotive. We're now 0:14:52.880 --> 0:14:56.080 working with virtually every car company. The car is becoming 0:14:56.080 --> 0:14:58.920 a new computing space, and we are jobs to provide 0:14:58.960 --> 0:15:03.360 the digital part sometimes to go alongside electrification. That's an 0:15:03.400 --> 0:15:06.560 exciting it's going to build revenue for welcome over time. 0:15:06.640 --> 0:15:09.560 The other one that was really happy about it. 0:15:09.480 --> 0:15:10.480 And it's new to us. 0:15:10.480 --> 0:15:14.520 We're entering the PC space. We just build now in 0:15:14.800 --> 0:15:18.720 the fastest processor for any laptop, and we think that 0:15:18.800 --> 0:15:20.360 could be a great opportunity for us. 0:15:20.560 --> 0:15:24.160 Call com CEO Cristiano I'm on earlier and another key 0:15:24.160 --> 0:15:27.520 conversation from Davos, and let's stay in Davos. The looming 0:15:27.600 --> 0:15:31.240 presidential election in the US this year will face risks 0:15:31.480 --> 0:15:35.080 with the rise of artificial intelligence. Leaders in AI, including 0:15:35.120 --> 0:15:38.720 open Ais, Sam Outman, and Microsoft founder Bill Gates wade 0:15:38.720 --> 0:15:41.040 in this week on the matter at Davos, and all 0:15:41.440 --> 0:15:46.040 said they took the threat of artificial intelligence on elections seriously, 0:15:46.440 --> 0:15:48.880 but there was a split in whether they thought a 0:15:49.000 --> 0:15:52.520 major disruption was likely. We'll keep tracking that one now 0:15:52.520 --> 0:15:54.680 coming up here on the program. We stick with AI 0:15:54.720 --> 0:15:57.520 as in thropic. It's coming up with new tools to 0:15:57.600 --> 0:16:00.880 its own chat or Claude. It's something a little bit 0:16:00.920 --> 0:16:21.200 more visual. We'll discuss that next this is Bloomberg Technology. Okay, 0:16:21.200 --> 0:16:23.400 it's time for talking tech and first up in the news, 0:16:23.400 --> 0:16:27.440 A federal appeals court denied the latest challenge from x 0:16:27.720 --> 0:16:31.360 to a special council demand for data from Donald Trump's 0:16:31.640 --> 0:16:35.480 Twitter or x account. The non disclosure order is received 0:16:35.560 --> 0:16:38.480 as part of a search warrant for a criminal investigation 0:16:38.600 --> 0:16:43.240 into Trump's attempt to overturn the twenty twenty election. Plus 0:16:43.280 --> 0:16:46.280 OpenAI is now working with the Pentagon on a number 0:16:46.320 --> 0:16:51.560 of projects, including cybersecurity capabilities and veteran projects. Departing from 0:16:51.560 --> 0:16:56.120 the startups earlier ban on providing its AI to militaries, 0:16:56.600 --> 0:16:59.880 and a new initiative will evaluate and certify AI products 0:17:00.120 --> 0:17:04.080 as copyright compliant. The stamp of approval is conducted by 0:17:04.119 --> 0:17:07.960 the nonprofit Fairly Trained, which was founded by the former 0:17:08.040 --> 0:17:11.480 vice president of Audio for Stability AI and in the 0:17:11.480 --> 0:17:14.920 world of AI startups. Anthropic is working on a feature 0:17:15.080 --> 0:17:18.359 that would give its chatbot Claud, the ability to analyze images. 0:17:18.640 --> 0:17:22.160 This is according to unpublished wording contained in the code 0:17:22.560 --> 0:17:25.720 of the company's website. This tool could widen the products 0:17:25.760 --> 0:17:28.879 appeal to users and help the company catch up with 0:17:29.119 --> 0:17:33.199 larger competitors. Let's break it all down with the best 0:17:33.359 --> 0:17:35.159 person possible Boom Both. 0:17:35.119 --> 0:17:37.280 Rachel metz Ai, Reporter. 0:17:37.560 --> 0:17:40.080 This is interesting because I hear about Anthropic all the 0:17:40.119 --> 0:17:45.119 time as the kind of LLM and chatbot number two 0:17:45.160 --> 0:17:49.199 behind open Ai, a big competitor. But this takes it 0:17:49.240 --> 0:17:51.000 from text into the image domain. 0:17:51.119 --> 0:17:51.840 What did you learn? 0:17:52.280 --> 0:17:55.439 Yeah, so I looked to add some of the code 0:17:55.480 --> 0:17:57.720 that you wouldn't see if you were on the website 0:17:57.760 --> 0:17:59.040 itself chatting with Clod. 0:17:59.119 --> 0:18:00.520 But it's really easy. 0:18:00.560 --> 0:18:03.600 Anybody can do this by using some tools that Chrome enables, 0:18:03.640 --> 0:18:07.959 they're called developer tools. And looked at the code that 0:18:08.040 --> 0:18:10.920 is used for the website and it indicates that they 0:18:10.920 --> 0:18:14.280 may be working on an image analysis feature. It says 0:18:14.760 --> 0:18:18.400 there are things like chat with pod about images, tell 0:18:18.480 --> 0:18:21.600 me more buildings by this architect, things like that that 0:18:21.720 --> 0:18:24.520 we expect will be coming soon to users of class. 0:18:24.600 --> 0:18:28.440 And so that puts Anthropic into a battleground with who, with. 0:18:28.800 --> 0:18:33.400 Open Ai and also with Google. Right now, there are 0:18:33.560 --> 0:18:37.240 an increasing number of what are often called multimodal models. 0:18:37.280 --> 0:18:40.640 These are these large language models that can take in 0:18:40.720 --> 0:18:44.439 not just a text prompt from a person, but also 0:18:44.680 --> 0:18:47.840 an image and maybe an image plus some words and 0:18:47.880 --> 0:18:50.919 then give you a result describing the image. Maybe you 0:18:50.920 --> 0:18:52.720 could give it an image of a dog and say 0:18:52.800 --> 0:18:54.240 what kind of dog is this, or what kind of 0:18:54.240 --> 0:18:54.879 plant is this? 0:18:55.520 --> 0:18:56.320 Or two images. 0:18:56.720 --> 0:18:59.040 That was one of the things that we found on 0:18:59.080 --> 0:19:02.320 the Claude website that is invisible to useurs yet describe 0:19:02.320 --> 0:19:04.040 the differences between these two images. 0:19:04.080 --> 0:19:04.760 That sort of thing. 0:19:05.160 --> 0:19:09.919 Bloomberg's Rachel Metz, who analyze the company website's underlying code 0:19:10.440 --> 0:19:13.760 in that reporting, thank you very much. Meanwhile, another story 0:19:13.760 --> 0:19:18.000 we're tracking, Apple's iPhone has dethroned Samsung devices to become 0:19:18.080 --> 0:19:21.359 the best selling smartphone series over the course of twenty 0:19:21.359 --> 0:19:23.920 twenty three, and Samsung's gearing up for one of its 0:19:23.920 --> 0:19:28.240 most anticipated phone launches in years later. On let's bring 0:19:28.240 --> 0:19:31.639 in Bloomberg's chief correspondent Mark German for more on the 0:19:31.680 --> 0:19:34.640 smartphone battle. You know, this was something that like Tim Cook, 0:19:34.680 --> 0:19:37.680 really leaned into in the last earnings, particularly in China, 0:19:37.720 --> 0:19:41.280 that they feel they were the best selling handset. You know, 0:19:41.320 --> 0:19:45.280 how significant is it that Apple defroned Samsung over the 0:19:45.280 --> 0:19:46.520 course of twenty three. 0:19:46.720 --> 0:19:50.000 Certainly a victory, right, given everything going on, It's a. 0:19:49.920 --> 0:19:50.640 Really big deal. 0:19:50.840 --> 0:19:52.399 I think they got a little bit of a boost 0:19:52.440 --> 0:19:56.720 on iPhone sales across calendar year twenty twenty three because 0:19:56.760 --> 0:19:59.280 of the production hiccups at the end of calendar twenty 0:19:59.320 --> 0:20:02.360 twenty two with the iPhone fourteen Pro. If you remember, 0:20:03.000 --> 0:20:06.240 right after the fourteen Pro launched, Apple had to pause 0:20:06.280 --> 0:20:10.520 production for several weeks due to China's then existing COVID protocols, 0:20:10.520 --> 0:20:12.600 which had to shut down fox Con and some of 0:20:12.640 --> 0:20:15.560 the peripheral factories, right, and so you saw some of 0:20:15.560 --> 0:20:18.119 those sales and those unit shipments hold off until the 0:20:18.119 --> 0:20:20.919 calendar turned into twenty twenty three when that issue was 0:20:20.960 --> 0:20:23.760 resolved after a matter of weeks. Then you combine that 0:20:23.840 --> 0:20:26.040 with the success of the iPhone fifteen Pro out of 0:20:26.040 --> 0:20:29.760 the gate, this is really good news for Apple. You know, 0:20:29.920 --> 0:20:32.360 I think that Samsung, what they've done is they've tried 0:20:32.400 --> 0:20:34.840 to diversify their smartphone line. They have sort of their 0:20:34.840 --> 0:20:38.400 flagship phones, which are the phones that are being introduced today. 0:20:38.480 --> 0:20:41.000 Those are the Galaxy S series, and then they have 0:20:41.040 --> 0:20:44.360 the Galaxy Fold series and the Galaxy Flip series, right, 0:20:44.400 --> 0:20:47.840 So they really segmented their smartphone market with even higher 0:20:47.880 --> 0:20:50.600 priced phones. And while over time, I think you're going 0:20:50.640 --> 0:20:54.440 to ultimately see a shift to foldables. Right, foldables maybe 0:20:54.440 --> 0:20:56.480 one day, five years from now, I think could be 0:20:56.520 --> 0:20:59.400 the majority share of the smartphone market for now, though 0:20:59.480 --> 0:21:01.920 that segmentation has created a little bit of a shipment 0:21:01.960 --> 0:21:05.400 issue for Samsung because of those high prices. Right, So 0:21:05.480 --> 0:21:07.760 for now, Apple's back in the lead for the first 0:21:07.760 --> 0:21:10.720 time since around the iPhone four came out, Right, remember 0:21:10.800 --> 0:21:13.439 that back in twenty ten. And it's interesting that this 0:21:13.480 --> 0:21:15.920 news arise as Samsung, like you said, it's about to 0:21:15.960 --> 0:21:19.520 make a very significant announcement with their new twenty four series. 0:21:20.000 --> 0:21:21.719 All right, Bloombos, mark Gum and thank you. 0:21:21.800 --> 0:21:24.040 Victory for Apple with the shares still under pressure in 0:21:24.119 --> 0:21:26.239 recent sessions. Now, coming up on the program, we'll get 0:21:26.240 --> 0:21:29.200 an update on the tech job's landscape with Lettis Lattice 0:21:29.240 --> 0:21:41.280 CEO Sarah Franklin. Okay, welcome back to Bloomberg Technology ed 0:21:41.320 --> 0:21:43.600