WEBVTT - Zuckerberg Recruits for New Meta AGI Group 0:00:00.080 --> 0:00:12.600 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 0:00:12.680 --> 0:00:16.440 live from coast to coast with Caroline Hide in New 0:00:16.520 --> 0:00:19.000 York and Eva Low in Sentrancisco. 0:00:22.600 --> 0:00:24.440 This is Bloomberg Tech coming up. 0:00:24.480 --> 0:00:29.000 Mark Zuckerberg personally assembling a super intelligence team to help 0:00:29.040 --> 0:00:31.640 Meta hit artificial general intelligence. 0:00:31.720 --> 0:00:31.920 Plus. 0:00:32.000 --> 0:00:35.360 Apple expands its relationship with Open AI and introduces a 0:00:35.360 --> 0:00:40.280 new software redesign called liquid Glass. We'll recap WWDC. 0:00:40.080 --> 0:00:43.040 And we speak with the ULA CEO about the spat 0:00:43.080 --> 0:00:45.800 between Elon Musk and Donald Trump and what it means 0:00:45.960 --> 0:00:47.200 for the space industry. 0:00:47.600 --> 0:00:50.159 But first we check out what's happening in the markets, 0:00:50.479 --> 0:00:53.159 some cautious trading. We've got big bond sales, fifty eight 0:00:53.200 --> 0:00:55.560 billion dollars, a three year debt coming due. We keep 0:00:55.560 --> 0:00:57.640 an eye on what the yields are doing, but we 0:00:57.680 --> 0:00:59.760 also keep an eye on what's happening in London, China. 0:01:00.280 --> 0:01:02.680 The talks continue. We're cleaning onto games up about a 0:01:02.720 --> 0:01:04.360 tenth of a percent. Remember the S and P near 0:01:04.400 --> 0:01:06.360 a record high ed. What are you looking at? 0:01:07.280 --> 0:01:10.400 Our top story and that is Meta CEO Mark Zuckerberg 0:01:10.720 --> 0:01:15.399 assembling this super intelligence team. Bloomberg Reporting citing sources that 0:01:15.440 --> 0:01:18.040 he wants fifty people. He wants them sitting close to 0:01:18.120 --> 0:01:21.440 him at HQ all to go after Agi and in 0:01:21.480 --> 0:01:24.080 Meta's case, the stock kind of up with the focus 0:01:24.080 --> 0:01:26.000 of the markets on trade talks right now. But this 0:01:26.120 --> 0:01:29.400 is very much Caro founder mode activated. 0:01:30.080 --> 0:01:32.720 Let's tick in on the founder mode. Brnimbos kert Wagner 0:01:32.800 --> 0:01:35.720 joins us now, who helped break down this story, and 0:01:35.760 --> 0:01:39.040 it feels as Oh, Mark Zuckerberg is rallying his troops, 0:01:39.080 --> 0:01:42.319 has got his own personal WhatsApp for this well party, 0:01:42.360 --> 0:01:42.960 he calls it. 0:01:44.160 --> 0:01:44.520 That's right. 0:01:44.560 --> 0:01:47.600 We've been told that he's essentially more involved in recruiting 0:01:47.640 --> 0:01:50.560 for this team than he has ever been at the 0:01:50.600 --> 0:01:54.160 company in more than twenty years. This is something that 0:01:54.320 --> 0:01:56.680 has you know, he's had a fire lit under him 0:01:57.240 --> 0:02:00.680 back in April when their Lama four model was released 0:02:01.120 --> 0:02:05.160 and quite frankly disappointed people, right, not only disappointed experts 0:02:05.160 --> 0:02:07.920 outside the company who are reviewing the model, but disappointed 0:02:07.960 --> 0:02:11.320 people internally. And we're told that Zuckerberg at that time 0:02:11.560 --> 0:02:14.720 really said, Okay, I need to be heavily involved. I 0:02:14.800 --> 0:02:17.360 need to go out and recruit these people myself to 0:02:17.400 --> 0:02:20.120 get the absolute best talent and that is what he 0:02:20.120 --> 0:02:22.800 has spent his last two months doing, literally hosting people 0:02:23.120 --> 0:02:25.480 at his homes in Palo Alto and like Tahoe to 0:02:25.480 --> 0:02:27.919 try and close these deals and sign these these AI 0:02:28.040 --> 0:02:29.200 experts and scientists. 0:02:30.120 --> 0:02:32.239 I've been hearing for a while that Meta is offering 0:02:32.320 --> 0:02:35.280 like salaries of two million dollars plus to a lot 0:02:35.280 --> 0:02:38.520 of engineering talent. But Mark Zuckerberg is doing the phone 0:02:38.520 --> 0:02:42.000 calls right. The question now is what is the motivation, 0:02:42.560 --> 0:02:45.320 you know, Meta versus the rest of the field. 0:02:45.200 --> 0:02:47.200 When it comes to the pursuit of Agi. 0:02:48.880 --> 0:02:50.480 Yeah, everyone's going after Agi. 0:02:50.560 --> 0:02:52.680 And the way it was described to me by someone 0:02:52.960 --> 0:02:55.600 the other day is, look, you know, it doesn't matter 0:02:55.600 --> 0:02:58.200 if you're the third person, the third company to get 0:02:58.200 --> 0:03:00.240 to AGI. It only matters if you're first. 0:03:00.280 --> 0:03:00.440 Right. 0:03:00.480 --> 0:03:02.440 Not only is that going to be a feather in 0:03:02.480 --> 0:03:06.320 your cap for future recruiting for you know, kind of 0:03:06.639 --> 0:03:09.280 the symbolism of being the first company to get there, 0:03:09.400 --> 0:03:11.239 but it's also going to give you a massive head start, 0:03:11.280 --> 0:03:13.920 as you know, for your products. So if Meta is 0:03:13.919 --> 0:03:16.640 to get their first Meta AI's chatbot is going to 0:03:16.680 --> 0:03:19.200 be more widely adopted, their ray banglasses will be more 0:03:19.200 --> 0:03:19.960 widely adopted. 0:03:20.000 --> 0:03:21.880 So the idea of getting to AGI is. 0:03:21.880 --> 0:03:24.680 A massive race because of all of these other implications. 0:03:24.960 --> 0:03:26.800 And that's one of the reasons that Zuckerberg, who is 0:03:26.880 --> 0:03:29.440 super super competitive by the way, that's why he's putting 0:03:29.520 --> 0:03:31.800 himself at the forefront of this effort. 0:03:31.800 --> 0:03:33.480 At Meta right now, chez. 0:03:33.320 --> 0:03:36.440 Been winning nineteen percent if you're looking at the competitive 0:03:36.440 --> 0:03:39.720 street code. But what about Scale AI and the investment there, 0:03:39.760 --> 0:03:40.560 how does it fit in? 0:03:41.840 --> 0:03:44.000 Yeah, So, as we reported over the weekend, a multi 0:03:44.000 --> 0:03:47.760 billion dollar investment is expected to go into Scale AI. 0:03:48.360 --> 0:03:51.400 I think there's sort of two parts to this one. 0:03:51.440 --> 0:03:54.320 There's the investment in what SCALEI is doing as a business, 0:03:54.320 --> 0:03:57.520 the tech. Also the sort of relationships that they've developed 0:03:57.520 --> 0:04:01.160 with with the government and having clients like that, I 0:04:01.200 --> 0:04:03.400 think is something that's appealing to Meta, who has not 0:04:03.520 --> 0:04:06.240 historically been in that bitline of business. But I think 0:04:06.240 --> 0:04:09.960 there's also a recruiting element to this story. Right Alex Wang, 0:04:10.000 --> 0:04:13.119 the CEO of Scale AI, is expected to join this 0:04:13.240 --> 0:04:16.120 new super intelligence team that we reported about last night. 0:04:16.600 --> 0:04:18.760 I believe there are other Scale AI employees who were 0:04:18.800 --> 0:04:21.120 probably contribute to this team as well, So there's sort 0:04:21.160 --> 0:04:24.800 of a sharing of talent as well that I think 0:04:24.880 --> 0:04:28.359 is a part of this expected deal which I imagine 0:04:28.400 --> 0:04:30.760 we may hear about sometime in the very near future. 0:04:31.880 --> 0:04:35.200 Kurt, when Zuckerberg is inviting these engineers into his homes 0:04:35.240 --> 0:04:37.919 like in Lake Tahoe, What is his pitch? What a 0:04:38.000 --> 0:04:40.960 source is saying that he thinks Meta is doing well? 0:04:41.120 --> 0:04:44.039 What Meta has an advantage in over the rest of 0:04:44.080 --> 0:04:44.440 the field. 0:04:46.000 --> 0:04:48.840 He's leaning quite heavily into Meta's resources. 0:04:49.360 --> 0:04:52.320 You know, he's from what we've heard, he's talked about 0:04:52.320 --> 0:04:55.200 the cash flow at the company, the strong advertising business, 0:04:55.200 --> 0:04:57.120 and the fact that they have the tens of billions 0:04:57.120 --> 0:05:00.320 of dollars on hand to go pursue these very spense 0:05:00.400 --> 0:05:01.719 of AI improvements. 0:05:01.760 --> 0:05:01.920 Right. 0:05:01.920 --> 0:05:03.880 A lot of the other companies aired as you know, 0:05:04.000 --> 0:05:06.920 they're about raising money. They're out fundraising constantly to try 0:05:06.920 --> 0:05:10.440 and get that cash flow in the building. Meta already 0:05:10.480 --> 0:05:12.960 has that. So here's out saying, look, we have the resources. 0:05:13.000 --> 0:05:16.039 I'm giving you the runway to do all of this stuff. 0:05:16.240 --> 0:05:18.320 You know, come work for me where you will never 0:05:18.440 --> 0:05:21.000 want for anything, essentially, right, So a big part of 0:05:21.040 --> 0:05:24.960 the push is Meta as a financial behemoth here, who 0:05:25.040 --> 0:05:26.520 can actually get this thing done? 0:05:27.400 --> 0:05:29.760 Behemoth. I wish we had more time to discuss that. 0:05:29.760 --> 0:05:33.000 Bloombo's Kurt Wagner, thank you very much. Sticking with AI, 0:05:33.160 --> 0:05:37.320 Apple introduced AI powered features at its Developers conference, including 0:05:37.600 --> 0:05:41.200 an expanded relationship with open Ai, but a new software 0:05:41.240 --> 0:05:45.000 redesign called liquid Glass, with a transparent menu and a 0:05:45.040 --> 0:05:45.640 glassy look. 0:05:45.640 --> 0:05:47.279 Bloombo's Mark gum And has. 0:05:47.160 --> 0:05:50.880 All the details in our discussion of Apple WWDC. We 0:05:50.960 --> 0:05:56.680 say that liquid Glass is the most significant design overhaul 0:05:57.040 --> 0:06:00.400 for an OS interface ever. 0:06:00.760 --> 0:06:02.120 What did you make of it? And what do we 0:06:02.160 --> 0:06:02.600 need to know? 0:06:03.800 --> 0:06:07.360 Yeah, So the significance of this interface change is how 0:06:07.400 --> 0:06:08.040 broad it is. 0:06:08.440 --> 0:06:10.280 Right, It's available. 0:06:09.760 --> 0:06:12.279 On all of Apple's devices. This is the first time 0:06:12.800 --> 0:06:16.000 they're doing a user interface revamp across all the devices. 0:06:16.040 --> 0:06:18.720 And it's also interesting because it sets the stage for 0:06:18.839 --> 0:06:22.320 future Apple devices. Right in terms of hardware, the Apple 0:06:22.360 --> 0:06:25.320 devices are going to get more of glassy, Right. You're 0:06:25.320 --> 0:06:28.600 going to see curve glass edges on the twentieth anniversary 0:06:28.640 --> 0:06:31.720 iPhone in two years. So having an olive glass interface 0:06:31.800 --> 0:06:34.719 with a lot of transparency sets the stage for that. 0:06:35.000 --> 0:06:38.080 And so from that standpoint, it's great. I've been using 0:06:38.160 --> 0:06:41.880 the new UI on all of my devices since yesterday 0:06:41.880 --> 0:06:44.760 when the betas came out, and I think it's really great, 0:06:44.800 --> 0:06:47.400 and I think it's also going to improve dramatically between 0:06:47.400 --> 0:06:50.360 now in September when it's all released. And so if 0:06:50.400 --> 0:06:53.160 you're a developer and you have an extra phone or 0:06:53.240 --> 0:06:54.560 you want to take a little bit of a risk, 0:06:54.600 --> 0:06:57.080 I would encourage anyone to try out the new look. 0:06:57.800 --> 0:07:01.760 So that's cool. But why then, unless like Angelo Zino 0:07:01.880 --> 0:07:04.680 saying this whole event was a dud, why is there 0:07:04.680 --> 0:07:06.679 such a deafening silence around Siri? 0:07:06.760 --> 0:07:11.440 For example, Mark Well, because Wall Street basically cares about 0:07:11.480 --> 0:07:14.800 buzzwords because buzzwords are wike at the share price moving 0:07:14.920 --> 0:07:17.600 in either direction. And you didn't hear a whole lot 0:07:17.760 --> 0:07:20.360 as we anticipated and talked about in advance about AI 0:07:20.640 --> 0:07:23.960 or Siri. Apple is essentially taking an AI gap year 0:07:24.160 --> 0:07:28.000 at the worst possible time. They're not promising any new 0:07:28.040 --> 0:07:30.480 AI features right now. I don't anticipate that they're going 0:07:30.520 --> 0:07:34.239 to start doing so again until June of twenty twenty six. 0:07:34.760 --> 0:07:38.960 Apple Intelligence obviously was a flop. They're doing their best 0:07:39.000 --> 0:07:41.600 to try to show people that they are here too 0:07:41.640 --> 0:07:44.840 with AI without going too far and making these promises. 0:07:45.240 --> 0:07:48.040 What they have done is partnered with Chat GPT and 0:07:48.080 --> 0:07:50.400 a few more features, so you can take a screenshot 0:07:50.440 --> 0:07:54.000 now and chat, GPT can analyze what's on your screen. 0:07:54.080 --> 0:07:56.160 Of course you could have done that with the app already, 0:07:56.200 --> 0:07:58.400 but this is a bit of a shortcut. And then 0:07:58.400 --> 0:08:01.440 they have new developer tools that happened to third party lms, 0:08:01.440 --> 0:08:05.000 including JGBT. But yeah, to be clear, as we've been 0:08:05.080 --> 0:08:08.000 talking about the fact that Apple is nowhere near any 0:08:08.040 --> 0:08:12.520 of its competition in AI is a massive failure on 0:08:12.560 --> 0:08:13.120 all levels. 0:08:13.960 --> 0:08:16.760 The stock fell one point two percent yesterday Monday. It's 0:08:16.800 --> 0:08:18.840 now up around one point two percent, so we've kind 0:08:18.840 --> 0:08:21.600 of balanced out the trading in this Market's more to 0:08:21.600 --> 0:08:25.280 do with trade talks than I guess anything idiosyncratic. I 0:08:25.400 --> 0:08:29.280 found that probably the most significant piece of news relevance 0:08:29.400 --> 0:08:33.400 WWDC to be that access for third party developers to 0:08:33.720 --> 0:08:37.280 on device llms, because you think about the app store 0:08:37.280 --> 0:08:40.720 that we have today and the ecosystem across operating systems. 0:08:40.880 --> 0:08:43.960 The whole point of WWDC mark is the developers right 0:08:44.240 --> 0:08:47.440 explain that piece of news and why the developer community 0:08:47.520 --> 0:08:47.880 cheered it. 0:08:49.120 --> 0:08:52.040 So the foundation models that are available for Apple's own 0:08:52.240 --> 0:08:55.320 AI features are now available to third party developers, so 0:08:55.360 --> 0:08:58.000 there are frameworks and software tools now for developers to 0:08:58.000 --> 0:09:01.600 build their own AI Features'll be making it easier than 0:09:01.600 --> 0:09:04.679 ever for developers, and by the way, there's millions of 0:09:04.720 --> 0:09:07.560 them on the Apple platforms to develop AI futures for 0:09:07.600 --> 0:09:09.800 their own apps. But just a step back in terms 0:09:09.840 --> 0:09:13.400 of the features themselves, right, Most consumers who use these 0:09:13.400 --> 0:09:15.440 devices just want them to be better, want them to 0:09:15.480 --> 0:09:18.720 be easier, and so Apple went after the core competencies. 0:09:19.000 --> 0:09:19.760 If you look at the. 0:09:19.760 --> 0:09:23.880 Three apps that were revamped and improved yesterday, the three 0:09:23.920 --> 0:09:27.360 were Safari, Phone and Camera, which are probably the most 0:09:27.440 --> 0:09:29.600 used apps on most people's iPhones. 0:09:30.000 --> 0:09:31.439 And then two additional apps that. 0:09:31.360 --> 0:09:33.880 Got a little bit of love were Photos and Messages, 0:09:33.920 --> 0:09:36.360 which probably rand out the top five. They weren't as 0:09:36.360 --> 0:09:39.480 significant as the first three. So Apple made major improvements 0:09:39.480 --> 0:09:41.920 to the apps that people are using every day. For 0:09:42.040 --> 0:09:46.040 iPad users, the new iPad operating system finally makes the 0:09:46.080 --> 0:09:49.040 iPad like a computer, right, and so that is a 0:09:49.200 --> 0:09:51.920 huge feature that people, including myself, have been asking for 0:09:51.920 --> 0:09:53.920 for years. So there's a lot of us in the 0:09:53.920 --> 0:09:57.280 Apple community who are actually pretty thrilled with the improvements 0:09:57.280 --> 0:10:00.160 that were made. But taking a step back still, this 0:10:00.280 --> 0:10:02.959 is focusing on these os franchises that have been around 0:10:02.960 --> 0:10:06.400 for decades rather than pushing us into these next generation 0:10:06.559 --> 0:10:09.760 in our faces based around AI. So you have to 0:10:09.840 --> 0:10:13.000 juggle both. Apple's doing a great job managing the current, 0:10:13.400 --> 0:10:16.200 but we've not seen a lot that's giving us confidence 0:10:16.200 --> 0:10:16.920 about the future. 0:10:17.440 --> 0:10:20.000 Bloomberg's Mark German, We thank you so much on the 0:10:20.000 --> 0:10:22.600 Apple round up. Meanwhile, let's just look at what Alphabet, 0:10:22.600 --> 0:10:24.400 the parent company of Google, is up to in terms 0:10:24.440 --> 0:10:27.480 of it stop climbing following a report from Reuters that 0:10:27.640 --> 0:10:30.120 it has signed a deal to provide cloud services to 0:10:30.480 --> 0:10:33.560 open Ai. Open Ai will use the additional computing capacity 0:10:33.600 --> 0:10:36.760 for training and running its models. Both companies declining to 0:10:36.760 --> 0:10:38.200 comment Reuters it's a game of front of. 0:10:38.240 --> 0:10:42.319 Me zed okay, coming up, Trade talks resume in London 0:10:42.400 --> 0:10:44.839 between the United States and China. We're going to have 0:10:44.960 --> 0:10:47.960 the latest details next. This is Bloomberg Tech. 0:10:57.000 --> 0:11:02.560 We are doing well with chin China's not easy. 0:11:02.720 --> 0:11:05.240 We want to open up China, and if we don't 0:11:05.280 --> 0:11:07.800 open up China, maybe we won't do anything. 0:11:07.840 --> 0:11:09.160 But we want to open up China. 0:11:09.160 --> 0:11:10.920 It'll be a great thing for China, a great thing 0:11:10.960 --> 0:11:11.960 for the rest of the world. 0:11:13.320 --> 0:11:16.240 That was President Trump commenting after the first day of 0:11:16.280 --> 0:11:19.040 trade talks between the US and China in London, and 0:11:19.160 --> 0:11:22.439 day two is now underway. Bloomberg's Amory Horden joins US 0:11:22.480 --> 0:11:24.960 from London. Amh what do we need to know? 0:11:27.760 --> 0:11:29.280 Well, you need to know is at the moment there 0:11:29.400 --> 0:11:33.120 is no update. We still see both delegations having another 0:11:33.200 --> 0:11:35.240 day of trade talks. They did have a break around 0:11:35.280 --> 0:11:37.800 two o'clock local time. They have been back at the 0:11:37.840 --> 0:11:41.800 negotiating table inside Lancaster House. We were waiting to hear 0:11:41.880 --> 0:11:47.120 for potentially any breakouts in terms of the United States 0:11:47.120 --> 0:11:49.840 getting what they want, which is an advanced pace of 0:11:49.960 --> 0:11:52.920 rare earth and magnets, and the Chinese side getting a 0:11:52.920 --> 0:11:55.840 bit of an easing of export controls, which is what 0:11:55.960 --> 0:11:59.280 Kevin Hassett, the NEC director had said. At the moment, 0:11:59.679 --> 0:12:04.480 talk are still ongoing, but there is really a time 0:12:04.559 --> 0:12:07.599 clock to this because Treasury Secretary Scott Besson has to 0:12:07.679 --> 0:12:10.760 be back on Capitol Hill tomorrow he is testifying in 0:12:10.800 --> 0:12:12.920 front of the House Ways and Means Committee, So they 0:12:12.960 --> 0:12:16.040 really are in a time crunch to wrap up these negotiations. 0:12:16.160 --> 0:12:19.760 Talking of timing, Amory an interestingly timed piece in the 0:12:19.760 --> 0:12:23.640 People's Daily over in China the front page Huawei found 0:12:23.760 --> 0:12:27.040 us saying, look, these restrictions on us, then I'll say about. 0:12:30.120 --> 0:12:32.040 Right, And that's what a lot of people were talking about, 0:12:32.120 --> 0:12:34.600 remember during Deep Seek. And this is something that the 0:12:34.800 --> 0:12:37.320 Nvidia CEO, Jensen Wang had said to me when I 0:12:37.360 --> 0:12:39.640 caught up with him briefly before he had that meeting 0:12:40.080 --> 0:12:42.040 a month or so ago with Donald Trump in the 0:12:42.040 --> 0:12:44.600 Oval Office, the President of the United States. Obviously they 0:12:44.679 --> 0:12:46.440 likely were probably going to talk about their chip controls. 0:12:46.440 --> 0:12:49.840 And he told ed recently that China has become quite 0:12:50.000 --> 0:12:52.880 formidable and that China is neck and neck really with 0:12:52.920 --> 0:12:55.280 the United States. They are not far behind. And that's 0:12:55.320 --> 0:12:58.640 really what the Huawei founder was saying in this local daily. 0:12:59.000 --> 0:13:02.199 It is really notable that in these talks in London, 0:13:02.679 --> 0:13:05.040 very different than the talks four weeks ago in Geneva, 0:13:05.120 --> 0:13:07.760 that Commerce Secretary Howard Lutnik is here. 0:13:07.960 --> 0:13:09.880 It means that those chips. 0:13:09.520 --> 0:13:12.720 Potentially those export controls are on the table. 0:13:13.320 --> 0:13:16.160 I'm Marie Hoden doing amazing work in London. We really 0:13:16.240 --> 0:13:19.000 appreciate it. Look, let's just check in on how Chinese 0:13:19.040 --> 0:13:21.400 stocks have reacted to all of this. They have been volatile. 0:13:21.640 --> 0:13:23.840 We've been higher early in trade, but at the beginning 0:13:23.840 --> 0:13:25.440 it really was down and down. We remain in the 0:13:25.440 --> 0:13:28.000 red once again. This is the trade talks that we 0:13:28.080 --> 0:13:31.000 say have been resuming. You're seeing Golden Dragon index and 0:13:31.040 --> 0:13:33.840 as that golden draggoning an index off by three tenths 0:13:33.880 --> 0:13:35.920 of a percent as we speak, Ali Baba off by 0:13:35.960 --> 0:13:38.240 eight tenths. JD off by more than a percentage point. 0:13:38.400 --> 0:13:40.520 Tiffany Wade is here on place to say, senior portfolio 0:13:40.559 --> 0:13:43.400 manager at Columbia thread Needle Investments manages a cool six 0:13:43.400 --> 0:13:45.840 one hundred and twenty one billion dollars in assets. Tiffany, 0:13:46.080 --> 0:13:48.920 how much is riding on these days of talks? How 0:13:48.960 --> 0:13:51.320 much do you think ultimately does make a decision for 0:13:51.360 --> 0:13:52.440 you within your portfolio. 0:13:52.960 --> 0:13:55.160 Yeah, I think we've seen the market react really well 0:13:55.200 --> 0:13:58.360 over the last couple of weeks to certainly a reduction, 0:13:58.440 --> 0:14:01.440 and some of the terriffs are China and other companies 0:14:01.600 --> 0:14:04.319 countries as well. This would be very critical, I think, 0:14:04.400 --> 0:14:08.000 especially for the tech sector, especially talking about export restrictions. 0:14:08.000 --> 0:14:10.280 There are certainly parts of the tech sector, like Nvidia 0:14:10.800 --> 0:14:13.839 most recently the electronic design automation companies that have been 0:14:13.960 --> 0:14:17.040 very hurt by export restrictions in tariffs. So for certain 0:14:17.520 --> 0:14:19.120 pockets of the market, I think this would be very 0:14:19.160 --> 0:14:22.920 impactful to see some of these trade negotiations play out. 0:14:23.200 --> 0:14:28.600 Tiffany, how much of a risk premium is the president 0:14:28.680 --> 0:14:31.480 when you look at any corner of the technology market 0:14:32.560 --> 0:14:34.320 and you say, I am going to bet on a 0:14:34.320 --> 0:14:38.080 company that this president has recently spoken favorably about or 0:14:38.160 --> 0:14:40.920 not favorably about, as the case may be, and talking 0:14:40.920 --> 0:14:43.680 of course about the volatility that he brings to any 0:14:43.720 --> 0:14:46.720 trade negotiation, Yeah, I think. 0:14:46.520 --> 0:14:48.720 It creates a lot of pause when you're thinking about 0:14:49.040 --> 0:14:53.520 companies that may be in focus from the president. Companies 0:14:53.560 --> 0:14:55.120 that have been talked about are sectors that have been 0:14:55.120 --> 0:14:57.920 talked about recently. But the worry as an investor is 0:14:57.920 --> 0:15:00.640 what will happen next that we haven't planned for or 0:15:00.680 --> 0:15:03.360 that we didn't see coming. So I think that, you know, 0:15:03.440 --> 0:15:06.080 companies that have been spoken about, have been targeted, are 0:15:06.120 --> 0:15:08.280 reflecting a bit of a risk premium, and you see 0:15:08.280 --> 0:15:10.480 this in a lot of the tech companies that are trading, 0:15:11.280 --> 0:15:13.280 you know, at discounts to where they were trading over 0:15:13.320 --> 0:15:16.640 the last couple of years, certainly relative to their own multiples, 0:15:16.680 --> 0:15:19.760 but also relative to the index as well, so I 0:15:19.760 --> 0:15:21.720 think that's reflected in some of the stocks. But again, 0:15:21.760 --> 0:15:25.080 the concern is what happens next because it's hard to predict. 0:15:25.680 --> 0:15:27.920 Boy does Tim Cook want to know what happens next 0:15:27.960 --> 0:15:31.640 as well? And his own salt trading below usual multiples. 0:15:31.800 --> 0:15:33.280 They've been in the eye this storm. When it comes 0:15:33.320 --> 0:15:35.440 to the supply chain side of things, what do you 0:15:35.480 --> 0:15:38.560 make of the desire to make companies ultimately build a 0:15:38.720 --> 0:15:41.800 US perhaps be less profitable. Does that make them as 0:15:42.480 --> 0:15:43.720 appetizing as an investment? 0:15:44.360 --> 0:15:47.400 It certainly doesn't. It hurts the profit margins, as you mentioned. 0:15:47.520 --> 0:15:49.600 I think it'll be interesting to see how all of 0:15:49.600 --> 0:15:51.920 this plays out because it takes multiple years to build 0:15:51.960 --> 0:15:56.800 a factory here. It probably takes longer than you know 0:15:56.840 --> 0:15:57.920 President Trump is going to. 0:15:57.880 --> 0:15:58.480 Be in office. 0:15:58.520 --> 0:16:03.320 So the announcement we've seen from companies building here, you know, 0:16:03.360 --> 0:16:05.360 maybe some of them make sense economically, maybe some of 0:16:05.360 --> 0:16:06.520 them are paying lip service. 0:16:06.320 --> 0:16:08.560 To the administration. But it'll see. 0:16:08.600 --> 0:16:10.320 It'll be interesting to see how this plays out. But 0:16:10.360 --> 0:16:13.720 it's it's interesting that Apple specifically has has been a 0:16:13.720 --> 0:16:15.160 little bit more defiant. 0:16:15.280 --> 0:16:19.280 More defined, but perhaps more distracted. Is what people worry 0:16:19.280 --> 0:16:21.840 about the fact that they are not playing catch up 0:16:21.840 --> 0:16:24.120 to this AI game is people had hope with WWDC. 0:16:24.240 --> 0:16:25.160 What did you make the event? 0:16:25.480 --> 0:16:27.360 Yeah, I thought the event was a little bit disappointing 0:16:27.400 --> 0:16:31.560 for Apple. We were expecting to hear more exciting updates 0:16:31.600 --> 0:16:36.080 around Apple intelligence, around AI, maybe around AI being incorporated 0:16:36.080 --> 0:16:39.200 into Siri, and instead I think we saw more updates 0:16:39.240 --> 0:16:43.520 on improving the user interface, more features on existing applications. 0:16:44.640 --> 0:16:47.160 You know, the applications that maybe incorporate the most AI 0:16:47.280 --> 0:16:50.160 would be their updates on visual intelligence or live translation, 0:16:50.280 --> 0:16:51.920 but those also feel like they're playing a little bit 0:16:51.920 --> 0:16:54.200 of catch up versus applications that are already in the 0:16:54.200 --> 0:16:55.640 market from other providers. 0:16:56.160 --> 0:16:58.400 And my Bloomberg terminal, Apple seems to be the top 0:16:58.440 --> 0:17:01.760 holding in the Columbia Large Growth funds, so let me 0:17:01.800 --> 0:17:03.960 know if that's right. But I think like so far 0:17:04.040 --> 0:17:07.960 this year, Apple has been trading on trade risk, right 0:17:08.040 --> 0:17:11.280 on tariff risk, And when we were like literally in 0:17:11.320 --> 0:17:14.560 the car on the way to APPLEWWDC, we're asking ourselves, 0:17:14.760 --> 0:17:18.440 has this name started trading on that AI concern yet 0:17:18.520 --> 0:17:18.760 or not. 0:17:19.680 --> 0:17:21.399 I think we've seen that a little bit around the 0:17:21.520 --> 0:17:24.720 WWSDC event, and we certainly saw that after the event 0:17:24.800 --> 0:17:27.280 yesterday where people were a little bit disappointed that there 0:17:27.359 --> 0:17:31.400 wasn't a big AI announcement coming out of the keynote presentation. 0:17:32.080 --> 0:17:34.439 So I think we're seeing that a little bit. But Apple, 0:17:34.560 --> 0:17:36.359 like a lot of big tech companies, I think, are 0:17:36.359 --> 0:17:39.439 still trying to figure out their strategy around AI and 0:17:39.480 --> 0:17:41.040 are putting a lot of money behind it. 0:17:42.040 --> 0:17:44.720 Tiffany, you set yourself up for this by saying the 0:17:44.760 --> 0:17:48.880 big question is what happened happens next for the technology sector? 0:17:49.160 --> 0:17:50.159 What happens next? 0:17:50.960 --> 0:17:53.000 I think we're still very positive on the tech sector 0:17:53.040 --> 0:17:55.520 for the rest of the year. There's a lot of 0:17:55.520 --> 0:17:57.960 good tail wins for the sector. Obviously, tariffs and next 0:17:57.960 --> 0:18:00.920 four restrictions could come out of field for the rest 0:18:00.920 --> 0:18:03.679 of the year, but there's a lot of good tailwinds 0:18:03.680 --> 0:18:06.679 for earnings growth, including AI investment that continues to be 0:18:06.800 --> 0:18:10.439 very strong across multiple parts of the market. If we 0:18:10.440 --> 0:18:13.159 look at earnings growth expectations for the rest of the 0:18:13.240 --> 0:18:15.800 year or for the full year, the tech sector is 0:18:15.800 --> 0:18:17.720 still expected to grow much faster than the rest of 0:18:17.760 --> 0:18:20.040 the market. And as I mentioned before, a lot of 0:18:20.080 --> 0:18:24.200 the valuations across certain subgroups of tech look very attractive 0:18:24.280 --> 0:18:25.040 versus their history. 0:18:25.119 --> 0:18:26.639 So we're still very positive on the sector. 0:18:26.760 --> 0:18:29.400 Are you positive on the commitment of capital coming from 0:18:29.400 --> 0:18:32.240 these companies? Look at what Mount Zuckerbug's doing, devoting his 0:18:32.359 --> 0:18:36.040 own time, his own dining table, but also shape quantities 0:18:36.040 --> 0:18:39.439 of cash to make sure that he tries to win agis. 0:18:39.000 --> 0:18:39.320 Isn't it? 0:18:39.680 --> 0:18:41.760 Yeah? Absolutely? And he's not alone. 0:18:41.800 --> 0:18:47.720 Microsoft, Apple, Alphabet, Amazon are all making huge investments into AI, 0:18:47.800 --> 0:18:49.399 and I think that has a great knock on effect 0:18:49.440 --> 0:18:53.240 for parts of the semiconductor equipment, parts of software, other 0:18:53.280 --> 0:18:56.359 parts of the economy, including industrials that all feed into 0:18:56.359 --> 0:18:57.720 that AI infrastructure. 0:18:59.080 --> 0:19:02.280 Tiffany wade Be of fread Needo Investments, thank you very much. 0:19:07.800 --> 0:19:10.840 Uber and Wave. They are set to plan their first 0:19:10.880 --> 0:19:13.800 trial run of fully autonomous vehicles in London. It is 0:19:13.840 --> 0:19:15.919 a move that could pay the way for commercial robotaxi 0:19:15.920 --> 0:19:19.119 services in the United Kingdom. Let's get on what this 0:19:19.240 --> 0:19:22.520 really means with Andrew Grant of Bloomberg NEF and really 0:19:22.560 --> 0:19:26.399 your focus and analysis here is what London means for 0:19:26.440 --> 0:19:29.159 the growth story of robotaxes. More broadly, why is it 0:19:29.200 --> 0:19:30.760 difficult to trial run there? 0:19:32.440 --> 0:19:35.120