WEBVTT - Nvidia Reports and Palo Alto Drops 0:00:02.920 --> 0:00:12.680 Bloomberg Audio Studios, podcasts, radio news. 0:00:10.160 --> 0:00:14.960 From the Heart where Innovation, money and power. Collie in Silicon. 0:00:14.560 --> 0:00:15.440 Valley, NBN. 0:00:15.760 --> 0:00:19.800 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:33.479 --> 0:00:35.599 I'm Caroline Heid at Bloomberg's weltad quarters in New York. 0:00:35.680 --> 0:00:38.919 Ed Ludlow he is off. This is Bloomberg Technology coming up. 0:00:39.200 --> 0:00:41.080 All eyes on Nvidia as. 0:00:41.000 --> 0:00:43.560 The one point seven trillion dollar chip company. It gears 0:00:43.640 --> 0:00:46.360 up for earnings results after the bell. Full coverage ahead, 0:00:46.760 --> 0:00:49.440 plus we stick with earnings and Palo Alto Networks heading 0:00:49.440 --> 0:00:52.959 for its biggest drop ever as customers face spending fatigue 0:00:53.000 --> 0:00:56.120 in cybersecurity will bring you those numbers. And Google looks 0:00:56.160 --> 0:00:58.720 to build an overen source AI community with the launch 0:00:58.760 --> 0:01:01.200 of its new model Gemma, built on the same technology 0:01:01.320 --> 0:01:04.440 as it's Gemini LLM. We'll discuss that and so much 0:01:04.520 --> 0:01:06.679 more throughout the hour, but first let's check in on 0:01:06.720 --> 0:01:09.120 these markets, because look, we are seeing a little bit 0:01:09.160 --> 0:01:11.240 fatigue when we call it in terms of purchasing of 0:01:11.319 --> 0:01:11.800 tech stocks. 0:01:11.840 --> 0:01:12.160 Right now. 0:01:12.200 --> 0:01:14.039 We are all waiting and watching to see whether the 0:01:14.040 --> 0:01:16.200 AI hype can be borne out in the. 0:01:16.120 --> 0:01:17.080 Reality of revenue. 0:01:17.120 --> 0:01:19.720 Uptic over it in video Nazdac off by six tens percent. 0:01:19.920 --> 0:01:22.240 Interesting Chinese stocks moving a little bit higher on those 0:01:22.360 --> 0:01:25.640 US traded ones that ultimately is being seen as China 0:01:25.720 --> 0:01:28.560 is putting in place and restrictions on selling maasbely getting 0:01:28.560 --> 0:01:30.959 out of certain stocks and the open and the close 0:01:31.080 --> 0:01:31.840 of their trade. 0:01:31.920 --> 0:01:33.960 Could this support the market in the stock. 0:01:33.720 --> 0:01:36.400 Inflow and see some sort of rebound that's been reflected 0:01:36.400 --> 0:01:38.080 here in the US trade. I'm looking at bitcoin under 0:01:38.080 --> 0:01:39.880 pressure just by one point eight percent. We're still at 0:01:39.959 --> 0:01:42.360 about a fifty one thousand dollars handle, but still a 0:01:42.400 --> 0:01:44.760 little bit of risk aversion today that sinks into that 0:01:44.760 --> 0:01:46.480 particular area of risk assets. 0:01:46.480 --> 0:01:47.520 Move on and have a look at one of the 0:01:47.600 --> 0:01:49.360 individual movers are doing on a. 0:01:49.400 --> 0:01:51.400 Day like today, because look, I've got to focus on 0:01:51.440 --> 0:01:54.280 what's been happening more broadly on the world of palle 0:01:54.360 --> 0:01:56.800 Alt networks as you see twenty six percent lower, a 0:01:56.920 --> 0:02:00.240 quarter of its market capitalization erased on one day, as 0:02:00.240 --> 0:02:02.760 they look actually on their fiscal quarter that they just 0:02:02.840 --> 0:02:06.360 had lived up to expectations, but their forecast is where 0:02:06.360 --> 0:02:09.280 we're worried about bytes technology. Interesting one traded over in 0:02:09.280 --> 0:02:10.840 the UK off by more than nine percent as the 0:02:10.880 --> 0:02:13.480 CEO suddenly steps down as he said, they's been making 0:02:13.520 --> 0:02:17.040 some trades and not been telling executives or shareholders. That's 0:02:17.080 --> 0:02:19.600 a UKAI and cyber and software company to keep an 0:02:19.639 --> 0:02:21.760 eye on. And in Vidia, as we say, down some 0:02:21.919 --> 0:02:24.600 two percent ahead of their earnings. Look, we are all 0:02:24.720 --> 0:02:26.959 waiting and watching as to whether this one point seven 0:02:27.040 --> 0:02:29.840 trillion dollar company can live up to the two hundred 0:02:29.880 --> 0:02:33.639 percent growth in revenue that market is anticipating. Kunjin Sabani 0:02:33.680 --> 0:02:35.200 is here with us. I'm so policed to say, Bloomberg 0:02:35.240 --> 0:02:38.680 Intelligence More and Nvidia and just tell us a little 0:02:38.680 --> 0:02:44.040 bit ultimately where the warriors. Has the market priced in 0:02:44.080 --> 0:02:46.400 the right sort of level of growth for this earnings number? 0:02:47.040 --> 0:02:49.800 Definitely? I mean, look the market the stock is price 0:02:49.840 --> 0:02:54.800 for perfection, and we again expect a robust print and guide. 0:02:55.440 --> 0:02:58.920 The supply has come in strong. Lead times have shrunk, 0:02:59.040 --> 0:03:01.840 but so has the demand and continues to still outface supply, 0:03:02.200 --> 0:03:06.320 especially as momentum in enterprise AI spending continues to rise, 0:03:06.520 --> 0:03:08.720 so that increases the odds of another beaten rise. 0:03:09.320 --> 0:03:13.200 And they are integral to AI infrastructure. They are integral 0:03:13.360 --> 0:03:16.480 to building out of AI models. What's interesting though, is 0:03:16.480 --> 0:03:18.960 in the past China has been integral to it. 0:03:19.440 --> 0:03:21.359 Are we likely to get any guidance. 0:03:20.960 --> 0:03:24.520 On how much geopolitics still affects the business and how 0:03:24.600 --> 0:03:25.920 much they can sell ince that country. 0:03:27.120 --> 0:03:29.160 Yes, I mean recently, you know, Jensen has been sort 0:03:29.200 --> 0:03:32.160 of on a world whore meeting with heads of different 0:03:32.200 --> 0:03:36.440 governments and different geographies, including China. So we do expect 0:03:36.440 --> 0:03:39.280 some kind of commentary on that. The numbers for this 0:03:39.400 --> 0:03:42.840 quarter have been dealers that China will be significantly lower 0:03:42.920 --> 0:03:44.880 than what we have seen in the past, but in 0:03:44.920 --> 0:03:48.840 the near term we think they can offset the demand 0:03:48.840 --> 0:03:50.680 that they could have shipped to China by shipping to 0:03:50.760 --> 0:03:54.320 other regions, which again continue to see significant increase in demand. 0:03:55.040 --> 0:03:58.800 We will see how all of that lives off. I mean, really, Kunjen. 0:03:59.040 --> 0:04:00.920 What's been so interesting has been some of the take 0:04:00.960 --> 0:04:04.280 from other analysts out there today, Scott Rubner, Goldman Sachs. 0:04:04.320 --> 0:04:07.160 What he's saying in Vidio is the most important stock 0:04:07.640 --> 0:04:11.040 on planet Earth. We'll see how you analyze that stock 0:04:11.080 --> 0:04:13.720 a little bit later. Being meg Intelligence analyst Punchin Sabani, 0:04:13.760 --> 0:04:15.440 thank you so much for the breakdown ahead of those 0:04:15.520 --> 0:04:16.719 numbers after the bell. 0:04:17.040 --> 0:04:18.280 But let's make this broader. 0:04:18.400 --> 0:04:21.159 Let's see how this particular stock fits in with the 0:04:21.200 --> 0:04:23.600 rest of the industry group and indeed markets more generally 0:04:23.760 --> 0:04:25.839 so pleased to welcome Chris and Bitterly, City Group Wealth, 0:04:25.839 --> 0:04:28.880 head of Investment Solutions to the show and Kristin. When 0:04:28.920 --> 0:04:32.000 you think about the most important stock on planet Earth, 0:04:32.240 --> 0:04:32.599 I mean. 0:04:32.520 --> 0:04:33.640 Is this the bell weather? 0:04:33.760 --> 0:04:35.719 Do we sort of throw all the FED concerns and 0:04:35.800 --> 0:04:38.520 talk and print that we're going to get from FED 0:04:38.560 --> 0:04:39.400 minutes out the window. 0:04:39.480 --> 0:04:41.960 This is clearly the key catalyst, at least for today 0:04:41.960 --> 0:04:44.960 and maybe this week. But I think, look, this is 0:04:45.600 --> 0:04:48.039 earnings after the close today. It's really about whether or 0:04:48.080 --> 0:04:51.560 not this AI story has more legs in terms of 0:04:51.600 --> 0:04:54.440 the momentum that we've seen in the market. I think 0:04:54.480 --> 0:04:56.200 one of the things that we're looking at though, is 0:04:56.400 --> 0:04:58.360 we can talk about the Magnificent seven, we can talk 0:04:58.400 --> 0:05:01.920 about the concentration in market breadth, but it has been 0:05:02.000 --> 0:05:05.839 backed up by delivering superior earnings. And when you have 0:05:05.920 --> 0:05:09.599 earnings growth that's in the ballpark of twenty five percent plus, 0:05:09.880 --> 0:05:13.200 it is something that actually compels the valuations that we 0:05:13.240 --> 0:05:16.279 see and actually continued inflows into these companies. 0:05:16.000 --> 0:05:19.520 Some might say actually in Vidio remarkably cheap in comparison 0:05:19.560 --> 0:05:21.200 to where we've seen in terms of the run up 0:05:21.240 --> 0:05:24.400 of the overall share price. But the spillover effects here, 0:05:24.600 --> 0:05:26.680 the fact that people are looking out for anything that 0:05:26.720 --> 0:05:28.640 has AI in its name. Many have felt that it's 0:05:28.720 --> 0:05:30.640 kind of a rerun of crypto in some way, But 0:05:31.160 --> 0:05:33.800 are they justified from your perspective. More broadly, on a 0:05:33.800 --> 0:05:36.520 macro perspective, Walt productivity is going to be born out 0:05:36.560 --> 0:05:37.080 for these companies. 0:05:37.080 --> 0:05:38.960 I think when we look at these very large companies 0:05:39.000 --> 0:05:40.680 that have performed quite well, we have to remember just 0:05:40.680 --> 0:05:42.760 going back to twenty twenty two, they did not perform 0:05:42.800 --> 0:05:45.520 well at all, So you were saying quite the opposite 0:05:45.520 --> 0:05:49.360 story where you saw declines of fifty sixty plus percent. Now, 0:05:49.440 --> 0:05:51.359 looking at this, like I said, it is backed up 0:05:51.360 --> 0:05:54.560 by earnings. You're looking at the Magnificent seven represent close 0:05:54.600 --> 0:05:56.920 to twenty percent of the earnings contribution of the US 0:05:56.920 --> 0:05:59.760 equity market. We're only going back to twenty seventeen it 0:05:59.800 --> 0:06:02.560 was five percent, So they have delivered in earnings growth. 0:06:02.880 --> 0:06:05.800 I do think though as an investor, it's important to 0:06:05.839 --> 0:06:08.960 have exposure here, but it's also important to have exposure 0:06:08.960 --> 0:06:11.720 as to who are the beneficiaries the play when it 0:06:11.720 --> 0:06:15.359 comes to the technology and the enablers very clear. I 0:06:15.400 --> 0:06:18.320 think the adopters is where investors are really looking for 0:06:18.480 --> 0:06:19.800 gains within twenty twenty four. 0:06:20.040 --> 0:06:21.120 Okay, so dig into that. 0:06:21.240 --> 0:06:25.440 Is it going for specific names in healthcare, specific names 0:06:25.600 --> 0:06:28.159 in industry that have managed tool cup a good game 0:06:28.200 --> 0:06:30.360 in AI or do you have to see the proof 0:06:30.360 --> 0:06:32.000 in the pudding before you stop audocating money. 0:06:32.000 --> 0:06:33.120 I think it's a little bit of a show me 0:06:33.200 --> 0:06:35.360 story in twenty twenty four. I think you know, when 0:06:35.360 --> 0:06:37.200 you just look at AI in terms of the number 0:06:37.200 --> 0:06:39.680 of times it's been mentioned in earnings calls, it's come down. 0:06:39.720 --> 0:06:41.839 I think, like last quarter it was six thousand times 0:06:41.880 --> 0:06:44.400 and now it's about two thousand. But I do think 0:06:44.440 --> 0:06:48.040 that when you look at sectors that stand to benefit 0:06:48.080 --> 0:06:50.840 from this. I know cybersecurity very much in the news 0:06:50.880 --> 0:06:53.200 based on last night's earnings, But you look at something 0:06:53.240 --> 0:06:56.200 like cybersecurity and you say, okay, comparing the run up 0:06:56.240 --> 0:07:00.320 of that sector versus the broader AI magnificent seven, there's 0:07:00.360 --> 0:07:03.560 a comparative difference there, and evaluation difference actually on a 0:07:03.560 --> 0:07:06.880 forward pe basis. You're looking at valuations that we haven't 0:07:06.880 --> 0:07:09.920 seen since twenty twenty within that sector, and when I 0:07:09.960 --> 0:07:13.560 think of the applications and the adopters of GENAI, not 0:07:13.600 --> 0:07:16.360 only in an area with cybersecurity, does that increase the 0:07:16.400 --> 0:07:19.480 total addressable market and the demand side of the equation. 0:07:19.880 --> 0:07:22.520 But there are real productivity gains when it comes to 0:07:22.840 --> 0:07:25.720 what used to take a security analyst hours to do 0:07:26.040 --> 0:07:28.200 can come down to minutes. And we're going to see 0:07:28.200 --> 0:07:30.720 those productivity gains in twenty twenty four. 0:07:31.520 --> 0:07:32.280 Maybe not macro. 0:07:32.440 --> 0:07:35.000 For US, there has been a perspective that the FED 0:07:35.080 --> 0:07:38.200 is going to stop maybe talking about the productivity gains 0:07:38.240 --> 0:07:40.640 the AI can bring more broadly to the US labor 0:07:40.680 --> 0:07:42.400 force and the fact that we do have a tight 0:07:42.480 --> 0:07:44.240 labor force, people still wanting to be hard. We do 0:07:44.400 --> 0:07:47.720 seem to see growth within it. Will we see productivity gains? 0:07:47.720 --> 0:07:49.520 Do you think more broadly in a macro perspective. 0:07:49.840 --> 0:07:51.840 I think from a macro perspective, we have to go 0:07:51.920 --> 0:07:54.800 back to even though we've seen volatility and the inflation print, 0:07:54.920 --> 0:07:56.400 we have to go back to what we know is 0:07:56.520 --> 0:07:58.280 true and where we're going to see flows from an 0:07:58.280 --> 0:08:00.920 investing standpoint, So what we to be true right now? 0:08:01.160 --> 0:08:03.400 We know that there's six trillion dollars sitting on the 0:08:03.400 --> 0:08:06.720 sidelines in money market funds that has increased by one 0:08:06.720 --> 0:08:09.440 and a half trillion dollars since the FED started its 0:08:09.480 --> 0:08:12.680 hiking cycle. We know that we're at peak FED funds rates. 0:08:12.800 --> 0:08:15.320 The question is when does the FED start cutting. I 0:08:15.320 --> 0:08:17.360 don't think there's too many arguments that the FED would 0:08:17.360 --> 0:08:20.120 resume a hiking cycle. Inflation, we knew it was going 0:08:20.160 --> 0:08:22.280 to be a bumpy ride down to the. 0:08:22.240 --> 0:08:23.280 Two percent target. 0:08:23.800 --> 0:08:25.360 We see a path maybe down to two and a 0:08:25.400 --> 0:08:28.120 half percent by the end of this year. And earnings 0:08:28.160 --> 0:08:30.560 have troughed, and I think that's an important thing when 0:08:30.600 --> 0:08:33.440 we look at this broadening, not only just because of 0:08:33.440 --> 0:08:36.760 inflation coming down, raids coming down, cash on the sidelines, 0:08:37.000 --> 0:08:40.160 Earnings troughed and Q three of last year and now 0:08:40.160 --> 0:08:43.680 we're seeing more sectors turn to profitability, So you have 0:08:43.760 --> 0:08:48.440 a profitability argument in addition to then productivity gains. 0:08:48.240 --> 0:08:49.960 And it might be an argument therefore, when you come 0:08:50.000 --> 0:08:52.080 back to your theme of cyber of buying on weakness. 0:08:52.080 --> 0:08:54.280 What we love about having you on shows across on 0:08:54.360 --> 0:08:56.720 network is the themes that you bring. Where else are 0:08:56.760 --> 0:09:00.199 you seeing sort of forces that cannot be argued with 0:09:00.280 --> 0:09:03.760 even in a Federal Reserve that potentially doesn't stop costing 0:09:03.800 --> 0:09:04.760 as soon as we anticipate. 0:09:04.800 --> 0:09:06.880 Another area that we love, and you're probably going to 0:09:06.920 --> 0:09:08.840 laugh because you've heard me talk about this for years, 0:09:09.040 --> 0:09:11.920 is longevity and investing in It's very tech. 0:09:13.120 --> 0:09:14.960 It really does it kind of does work. 0:09:15.000 --> 0:09:17.360 So we'll bring it full circle in terms of AI 0:09:17.440 --> 0:09:20.600 gains there as well. But longevity is another area that 0:09:20.679 --> 0:09:23.480 was left behind last year. So when you look at healthcare, 0:09:23.760 --> 0:09:27.400 it was really exclusively about GLP one drugs until the 0:09:27.480 --> 0:09:30.520 last two months of the year, and then biotech started 0:09:30.520 --> 0:09:32.520 to get a little bit of a bid, med tech 0:09:32.559 --> 0:09:34.440 started to get a little bit of a bid, and 0:09:34.520 --> 0:09:37.400 life sciences. And so this is the same type of 0:09:37.520 --> 0:09:39.839 argument when you think of productivity gains, when you think 0:09:39.840 --> 0:09:42.400 of enhancements, when you think of what technology can do 0:09:42.480 --> 0:09:45.560 in bringing down the cost of healthcare, there are a 0:09:45.559 --> 0:09:48.839 lot of compelling valuation opportunities, both for the short term but. 0:09:48.800 --> 0:09:49.880 Also for the long term. 0:09:50.120 --> 0:09:52.600 We love the themes, you love the perspective the macro commentary. 0:09:52.760 --> 0:09:55.600 Thanks so much, con thank you. Enjoy the healthy dose 0:09:55.640 --> 0:09:58.040 of an exalt to the bell. Christian Visilicious City Group Wealth, 0:09:58.120 --> 0:10:09.360 Head of Investment Solutions, Apple it's upgrading the security of 0:10:09.360 --> 0:10:12.480 as I message app to fend off a looming future threat, 0:10:12.800 --> 0:10:15.800 advanced quantum computing attacks. Let's bring in blue mugs Mark 0:10:15.800 --> 0:10:16.520 German for more. 0:10:16.559 --> 0:10:17.440 And we talk a lot. 0:10:17.360 --> 0:10:20.400 About quantum computing, but the reality hasn't yet arrived. 0:10:20.480 --> 0:10:21.679 Blapple wants to front run that. 0:10:22.800 --> 0:10:24.320 Yeah, thank you so much for having me. That's right, 0:10:24.400 --> 0:10:28.080 quantum computing. Some estimates indicate that these types of computers, 0:10:28.440 --> 0:10:32.640 which are super duper computers, not just supercomputers so to speak, 0:10:33.600 --> 0:10:36.600 won't arrive until the tail end of the decade or 0:10:36.760 --> 0:10:39.720 deep into the twenty thirties. But Apple's starting to prepare 0:10:39.760 --> 0:10:41.839 for that with I Message. Let me tell you why. 0:10:42.240 --> 0:10:46.800 There is something called harvest now decrypt later attacks. Right. 0:10:47.080 --> 0:10:49.679 What that means is someone could steal some data now, 0:10:50.080 --> 0:10:54.360 even though it's unbreakable now, quantum computers in the future 0:10:54.400 --> 0:10:55.600 may be able to break it open. 0:10:55.880 --> 0:10:56.120 Right. 0:10:56.320 --> 0:10:58.920 So Apple wants to stop that from happening. They don't 0:10:58.960 --> 0:11:01.680 want someone to collect or steal someone's IM message data 0:11:01.960 --> 0:11:04.280 in the year twenty twenty five and then crack it 0:11:04.320 --> 0:11:06.840 open in twenty thirty two. And so that's what this 0:11:06.920 --> 0:11:10.400 new I Message PQ three technology is going to do. 0:11:10.559 --> 0:11:14.880 It's much improved encryption for the platform. It's rolling out 0:11:15.600 --> 0:11:18.760 next month when Apple releases its next software updates, iOS 0:11:18.800 --> 0:11:21.719 seventeen point four being the big one, and then it's 0:11:21.760 --> 0:11:25.319 going to become the default for all I message conversations 0:11:25.480 --> 0:11:26.600 by the end of this year. 0:11:26.920 --> 0:11:29.640 And saying it's more efficient of effective at least than 0:11:29.640 --> 0:11:32.160 the signal, of course than other competitors out there. 0:11:32.160 --> 0:11:32.640 What's happen? 0:11:32.640 --> 0:11:35.160 They're like, Mark, I'm interested, and also that you're reporting 0:11:35.160 --> 0:11:38.000 that you've done overnight on Really some executive changes going 0:11:38.040 --> 0:11:38.480 on at Apple. 0:11:38.480 --> 0:11:40.000 This seems to be a never ending story. 0:11:41.160 --> 0:11:43.840 Yeah, it's interesting. More executive changes at Apple, this one 0:11:43.920 --> 0:11:47.679 in its audio division. Gary Jeeves, who's their vice president 0:11:47.679 --> 0:11:51.120 of Acoustics, one of their top executives related to audio, 0:11:52.040 --> 0:11:54.559 really has been the leader and at the forefront of 0:11:54.559 --> 0:11:57.520 the development of air pods over the last decade or so, 0:11:58.200 --> 0:12:01.320 which obviously now is a fifteen to twenty billion dollars 0:12:01.280 --> 0:12:04.640 a year business for Apple. He has stepped down as 0:12:04.679 --> 0:12:07.120 of this week from his role. He's given that role 0:12:07.200 --> 0:12:10.320 to his top deputy. He's going to remain for the 0:12:10.320 --> 0:12:13.600 next several months at Apple as an advisor, right, so 0:12:13.679 --> 0:12:15.959 no longer running the team, but an advisor to Apple's 0:12:16.040 --> 0:12:20.800 executive in charge of Beats, AirPods, now the home Pod 0:12:21.040 --> 0:12:24.679 and other audio products, so more executive changes. This comes 0:12:24.720 --> 0:12:28.079 after Dj Navotni, who was a key vice president of 0:12:28.120 --> 0:12:30.800 hardware engineering there, left to be a senior vice president 0:12:30.840 --> 0:12:34.640 of program management at Rivian earlier this year. Tang Tan, 0:12:34.840 --> 0:12:37.920 the vice president of design for the iPhone, the Apple Watch, 0:12:38.160 --> 0:12:41.600 and AirPods. He's going to join former Apple design chief 0:12:41.640 --> 0:12:44.679 Johnny I've in his company love from working on new 0:12:44.720 --> 0:12:48.600 AI products with Sam Altman, and you've seen a large 0:12:48.679 --> 0:12:51.200 chunk of Apple's industrial design team leave as well. So 0:12:51.960 --> 0:12:56.040 this is not a departure yet, but key executive stepping 0:12:56.040 --> 0:12:56.720 down from their role. 0:12:57.120 --> 0:12:59.560 Changing of the God Matt Gammon always ahead of it 0:12:59.760 --> 0:13:02.880 with thank you so much for the insights. Now let's 0:13:02.920 --> 0:13:04.800 turn our attention to talking tech and we're going to 0:13:04.840 --> 0:13:07.719 stick with the theme of executive reshuffling. SpaceX seeing a 0:13:07.800 --> 0:13:10.280 rare high level departure in its corporate ranks. According to 0:13:10.320 --> 0:13:13.120 reporting from CNBC, the company senior vice president of its 0:13:13.120 --> 0:13:15.960 commercial business is leaving after spending more than a decade 0:13:16.000 --> 0:13:18.800 working there and was personally responsible for bringing in over 0:13:19.040 --> 0:13:23.400 a billion dollars of annual revenue. Meanwhile, Samsung has sold 0:13:23.440 --> 0:13:27.200 its entire remaining stake in ASML. That's as it pushes 0:13:27.200 --> 0:13:29.160 into new areas of chip making. Now the world's largest 0:13:29.160 --> 0:13:31.959 memory maker sold its remaining shares in the Dutch company 0:13:32.160 --> 0:13:33.800 as it really tries to work to catch up with 0:13:33.920 --> 0:13:37.200 rival s k Heinex in high bend bandwidth memory chips, 0:13:37.320 --> 0:13:40.480 which are used to help in videos, accelerators, train artificial 0:13:40.520 --> 0:13:44.360 intelligence plus sam mam and Freed is heading back to 0:13:44.400 --> 0:13:46.920 court today for the first time since his November conviction. 0:13:47.200 --> 0:13:50.079 That's over a multi billion dollar fraud in cryptocurrency customers. 0:13:50.120 --> 0:13:51.319 Of course, Patwan. 0:13:51.040 --> 0:13:53.480 Freed is slated to answer questions from a federal judge 0:13:53.520 --> 0:13:55.440 as to whether he is aware of potential conflicts of 0:13:55.480 --> 0:13:58.520 interest for the lawyers he hired last month to represent 0:13:58.600 --> 0:14:01.760 him at sentencing in March. His new attorneys also represent 0:14:01.840 --> 0:14:06.760 another cryptomogul facing criminal charges coming up. Vice president and 0:14:06.800 --> 0:14:09.800 general manager of Google Workspace going to be joining us 0:14:10.160 --> 0:14:13.000 a partner, Pabu joining us to talk about how duet 0:14:13.040 --> 0:14:17.160 ai is turning into Google Workspace and it became Gemini. 0:14:17.240 --> 0:14:18.800 That's next watching shows of Amazon. 0:14:18.800 --> 0:14:20.880 Meanwhile, let's have a quick look at what's happening in 0:14:20.960 --> 0:14:23.960 terms of well up eight nine tenths of the percent why. 0:14:23.840 --> 0:14:27.120 Centering the Dow Jones Industrial average. What falls out Walgreens? 0:14:27.480 --> 0:14:38.200 This is Blueberg Technology. 0:14:43.920 --> 0:14:45.920 Just to talk about Google for a moment, because it's 0:14:46.000 --> 0:14:48.960 got a lot of announcements. First up, it's introducing new 0:14:49.040 --> 0:14:52.240 open large language models that's calling GEMMA. This is reversing 0:14:52.240 --> 0:14:54.560 the company's kind of general strategy and keeping the company's 0:14:54.560 --> 0:14:57.880 proprietary artificial intelligence technology out of public view. But the 0:14:57.920 --> 0:15:00.840 models will handle text only have been built from the 0:15:00.920 --> 0:15:03.520 same research and technology used to create the company's flagship 0:15:03.560 --> 0:15:07.120 AI model, Gemini and Gemma will be released in two sizes, 0:15:07.360 --> 0:15:09.960 one targeted at customers who plan to develop AI software 0:15:10.040 --> 0:15:12.800 using high capacity AI chips and data centers, and then 0:15:12.800 --> 0:15:15.600 a smaller model for more cost efficient app building. And 0:15:15.640 --> 0:15:18.760 many would say, actually given them transformers being given to 0:15:18.800 --> 0:15:22.320 the community in many ways Google has been open sourcing. Meanwhile, 0:15:22.400 --> 0:15:24.400 let's stick with Google in another way in which you're 0:15:24.480 --> 0:15:27.360 using it, perhaps at the enterprise. Some more news coming 0:15:27.400 --> 0:15:30.720 out that's starting today Duet AI for Google Workspace. It's 0:15:30.720 --> 0:15:32.040 going to have a brand new name, and you guess 0:15:32.120 --> 0:15:34.960 that it's Gemini Workspace customers will be able to chat 0:15:35.000 --> 0:15:37.160 with Gemini in a new way, and the chat experience 0:15:37.200 --> 0:15:40.320 will have enterprise grade data protections as well as copyright 0:15:40.360 --> 0:15:43.880 in demnification. Here to join a Vice president and General 0:15:43.920 --> 0:15:46.520 Manager of Google Workspace a pantner PAPU. It is great 0:15:46.520 --> 0:15:49.680 to have you with us a partner, and number of 0:15:49.760 --> 0:15:52.440 ways it feels to be using Gemini Now when I'm 0:15:52.480 --> 0:15:54.760 sat at my work desk, how do you envisage people 0:15:54.800 --> 0:15:58.000 working with it to improve their productivity? 0:15:58.160 --> 0:16:00.960 Well, first of all, we're super excited have Workspace center 0:16:01.080 --> 0:16:03.800 the Gemini era. As you said, workspace comprisers of apps 0:16:03.800 --> 0:16:05.800 that people use every day in their life, from Gmail, 0:16:05.960 --> 0:16:08.600 Dark Drive, sheets, Meet, you name it, and so to 0:16:08.640 --> 0:16:11.800 have Gemini infuse there to make all of your work 0:16:11.920 --> 0:16:15.080 journeys more productive is fantastic. So we're already seeing people 0:16:15.120 --> 0:16:17.360 do lots of interesting things like helping them write better, 0:16:17.600 --> 0:16:20.640 making them sound more professional, perhaps making them sound more playful. 0:16:20.760 --> 0:16:24.920 And so today's announcement is really exciting because Gemini in 0:16:25.040 --> 0:16:28.080 Workspace just up levels all of the things that AI 0:16:28.200 --> 0:16:29.800 can help you do in your work. 0:16:29.600 --> 0:16:31.960 Life, and not many people might not realize as over 0:16:32.000 --> 0:16:35.480 three billion people do use Google Workspace, and I'm therefore 0:16:35.520 --> 0:16:37.600 you can garner so much data as to how it's 0:16:37.640 --> 0:16:41.080 being effectively deployed, who, what types of people wear geographically, 0:16:41.120 --> 0:16:44.080 but what are the guardrails that a lot of your 0:16:44.080 --> 0:16:45.840 clients are going to be asking you for, because that 0:16:45.880 --> 0:16:48.200 has been almost the nervousness, the reticent about the new 0:16:48.200 --> 0:16:49.240 world of generative AI. 0:16:49.600 --> 0:16:51.800 So one of the things that we hold very dear 0:16:52.160 --> 0:16:56.040 is our promise to users about privacy, security and compliance. 0:16:56.120 --> 0:16:59.760 And with Workspace, we offer enterprise grade security for all 0:16:59.760 --> 0:17:02.880 of our Gemini features, which means you're in control of 0:17:02.920 --> 0:17:06.240 your data. Your data never leaks into the models you get, 0:17:06.320 --> 0:17:09.560 your data's never used for advertising, and so that level 0:17:09.640 --> 0:17:12.520 of security and compliance being made available now to all 0:17:12.520 --> 0:17:15.280 of our Gemini users is something that we're very proud of. 0:17:15.760 --> 0:17:18.639 What's interesting is, of course, when I think about Workspace, 0:17:18.680 --> 0:17:21.600 I think of enormous corporations in which I currently sit. 0:17:21.680 --> 0:17:26.000 But small and medium size enterprises have got to have 0:17:26.040 --> 0:17:28.399 been wanting to use generative AI in their heart too, right. 0:17:28.680 --> 0:17:31.679 Absolutely, we just did a survey wag eighty seven percent 0:17:31.720 --> 0:17:34.520 of small businesses and all medium sized businesses are all 0:17:34.560 --> 0:17:37.199 ready to use generait of AI and so given our 0:17:37.280 --> 0:17:40.479 user customer base of over ten million customers, we're excited 0:17:40.480 --> 0:17:43.199 to bring Gemini today with a brand new launch at 0:17:43.200 --> 0:17:45.920 a lower price point to businesses of all sizes all 0:17:45.960 --> 0:17:48.800 over the world. And so with that launch, we now 0:17:48.880 --> 0:17:51.359 enable small businesses to get more done every single day. 0:17:51.400 --> 0:17:51.720 As well. 0:17:52.080 --> 0:17:54.280 Taught to us about ultimately the pricing of this. 0:17:54.400 --> 0:17:57.080 How does one come up with what real value is 0:17:57.200 --> 0:18:00.800 worth in this and not be sort of blown around 0:18:00.880 --> 0:18:03.800 by ultimately well other competitors of pricing that points at. 0:18:04.160 --> 0:18:07.439 So we feel very strong about our pricing strategy. It's robust, 0:18:07.480 --> 0:18:09.520 It's based on a number of factors, not just what 0:18:09.560 --> 0:18:11.760 the market can bear, but also the perceived value of 0:18:11.760 --> 0:18:14.239 our customers, because ultimately it comes down to customers and 0:18:14.240 --> 0:18:16.080 what they're willing to pay for. And this is where 0:18:16.080 --> 0:18:18.400 we started with a thirty dollars version for our enterprise 0:18:18.480 --> 0:18:21.760 customers and a twenty dollar version for smaller businesses or 0:18:21.880 --> 0:18:23.960 enterprises who want to get started. But I'm not quite 0:18:23.960 --> 0:18:26.760 sure where to begin, and I said. 0:18:26.560 --> 0:18:29.679 At the beginning, So with the breadth of three billion users, 0:18:30.520 --> 0:18:33.240 how are you seeing it being used differently in different places? 0:18:33.359 --> 0:18:36.320 Oh, it's so wonderful. It's so creative and clever. People 0:18:36.320 --> 0:18:38.480 tell us stories all the time of things that they're 0:18:38.480 --> 0:18:40.560 doing with it. We have small business people who are 0:18:40.560 --> 0:18:42.680 actually just wanting to focus on their businesses. So, for example, 0:18:42.720 --> 0:18:45.000 a music teacher really just wants to teach music, but 0:18:45.160 --> 0:18:48.120 often has to respond to inbound inquiries all the time, 0:18:48.160 --> 0:18:51.679 and so getting help replying to emails while sounding you know, 0:18:52.240 --> 0:18:54.600 factual and professional is actually really fantastic. 0:18:54.800 --> 0:18:56.160 We love the stories where people for. 0:18:56.119 --> 0:18:58.760 Whom English is the second language, have been you know, 0:18:58.840 --> 0:19:00.960 their work has been transformed by how it makes them 0:19:01.000 --> 0:19:04.320