WEBVTT - Meta's AI Push and the Apple/Epic Fight Goes to SCOTUS 0:00:01.720 --> 0:00:05.400 From Marhart where Innovation of Money and Power Collie in 0:00:05.480 --> 0:00:10.440 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.440 --> 0:00:11.360 and Ed Ludlow. 0:00:26.160 --> 0:00:29.120 I'm Caroline Heinder Blomberg's World headquarters in New York, and 0:00:29.200 --> 0:00:30.880 I'm Ed Ludlow here in San Francisco. 0:00:31.040 --> 0:00:33.239 This is Bloomberg Technology. 0:00:32.800 --> 0:00:36.400 Coming up metas push into generative AI. Mark Zuckerberg announces 0:00:36.479 --> 0:00:40.080 artificial intelligence tools that are coming to Instagram, Messenger, WhatsApp. 0:00:40.080 --> 0:00:42.479 We're going to run through the entirety and get the 0:00:42.520 --> 0:00:44.239 reaction to Meta connect. 0:00:44.840 --> 0:00:47.720 And Apple asked the US Supreme Court to reverse its 0:00:47.840 --> 0:00:50.879 app store ruling won by Epic two years ago. We're 0:00:50.880 --> 0:00:52.800 going to bring you the latest details. 0:00:52.320 --> 0:00:56.360 Plus TikTok airs and ads during the Republican debates moments 0:00:56.400 --> 0:00:59.640 after candidate's spa of the security concerns with the app 0:01:00.120 --> 0:01:02.760 have more on that than the companies e commerce ambitions too. 0:01:02.760 --> 0:01:05.840 But first let's checking on these markets, because actually we've 0:01:05.840 --> 0:01:07.720 got the NASA managing to push up more than a 0:01:07.720 --> 0:01:10.600 percentage point even in the face of growing yields on 0:01:10.640 --> 0:01:13.920 the thirty year Actually we're basically flat about one basis point. 0:01:13.959 --> 0:01:16.520 We had been at decade highs. In fact, the higher 0:01:16.520 --> 0:01:18.600 since twenty ten on the thirty year. Maybe a bit 0:01:18.600 --> 0:01:20.760 of a correction going on with yields pulling down on 0:01:20.840 --> 0:01:21.280 the front end. 0:01:21.319 --> 0:01:22.959 We've had some weaker macro data today. 0:01:23.120 --> 0:01:25.120 Ed we're still trying to work out the direction of 0:01:25.120 --> 0:01:27.920 travel from Federal Reserve and global central banks as they 0:01:27.959 --> 0:01:31.080 still have to tackle pretty strong economies, particularly here in 0:01:31.120 --> 0:01:33.559 the United States. The dollar manages are pulled down after 0:01:34.040 --> 0:01:36.679 days of rallying, so maybe that's a sigh of relief 0:01:36.800 --> 0:01:38.880 for some of the riskier assets out there. At the moment, 0:01:38.920 --> 0:01:41.119 we're seeing dollar indux off by five ten percent, move 0:01:41.120 --> 0:01:43.959 on to bitcoin therefore, and bitcoin manages to push higher 0:01:44.240 --> 0:01:47.400 versus the US dollar. That risk appetite building a little 0:01:47.400 --> 0:01:49.360 bit in the og world of crypto. So if we 0:01:49.360 --> 0:01:51.040 can just shine a light on what's happening in bitcoin. 0:01:51.080 --> 0:01:53.520 We are higher on the day, so currently up almost 0:01:53.520 --> 0:01:54.360 three point three percent. 0:01:54.400 --> 0:01:57.520 And to you on the micros, yeah, we got news 0:01:57.640 --> 0:01:59.800 and we've got earnings. On the news side, Peloton has 0:01:59.800 --> 0:02:01.960 a content deal with Lulu Lemmon. The stock up seven 0:02:01.960 --> 0:02:04.680 percent now had been much higher. Later in the show, 0:02:04.840 --> 0:02:06.880 we're going to bring you the analyst reaction because this 0:02:06.960 --> 0:02:11.040 is all around Lulu's mirror, but it has a finite life, 0:02:11.080 --> 0:02:13.160 and it's really interesting to see the stock bounce all 0:02:13.200 --> 0:02:15.600 over the place. On the earning side, Micron, the biggest 0:02:15.720 --> 0:02:18.200 US maker of memory chips, we're talking d ram, we're 0:02:18.240 --> 0:02:21.840 talking nand projecting a wide and expected loss for the 0:02:21.919 --> 0:02:25.920 current quarter, the fiscal first ending in November. But there 0:02:25.919 --> 0:02:28.840 are signs that the memory market, maybe in the trough, 0:02:28.880 --> 0:02:30.680 coming out of a trough, will go deeper. 0:02:30.720 --> 0:02:32.080 On that later in the program. 0:02:32.400 --> 0:02:36.800 There's an interesting day to to Meta Connect Meta's developers conference. 0:02:36.840 --> 0:02:38.760 Look at the stock on a two day basis. The 0:02:38.800 --> 0:02:41.239 training's kind of all over the place, like while Meta 0:02:41.280 --> 0:02:43.959 connect was going on, kind of disinterested. The stock falls 0:02:44.400 --> 0:02:48.680 closes basically flat on Wednesday, but we're significantly higher today. 0:02:48.680 --> 0:02:50.960 We had the hardware announcements around Quest three and the 0:02:50.960 --> 0:02:51.840 smart glasses. 0:02:52.040 --> 0:02:53.000 But as you talked. 0:02:52.760 --> 0:02:55.120 About, Carol, it's about the integration of what it's been 0:02:55.160 --> 0:02:58.919 working on the research side, large language models now generative 0:02:58.919 --> 0:03:01.840 AI tools in it's suite of apps and offerings. 0:03:01.919 --> 0:03:03.520 Yeah, and let's just listen and add as to what 0:03:03.560 --> 0:03:06.320 Mark Zeckerberg really articulated about AI at the event. 0:03:06.360 --> 0:03:09.800 Take listen what I argue is that people are going 0:03:09.840 --> 0:03:13.080 to want to interact with a bunch of different ais 0:03:13.120 --> 0:03:15.000 for the different things that you want to do. 0:03:15.120 --> 0:03:16.160 And I actually think that. 0:03:16.120 --> 0:03:17.440 Over time a lot of you are going to want 0:03:17.440 --> 0:03:20.360 to make your own AIS to advance individual goals that 0:03:20.440 --> 0:03:23.080 you have, whether you're a small business and you want 0:03:23.080 --> 0:03:25.800 to interact with customers, or if you're a creator and 0:03:25.800 --> 0:03:27.200 you want to engage your community, or. 0:03:27.200 --> 0:03:28.120 Whatever it is that you do. 0:03:29.800 --> 0:03:30.320 He needs to say. 0:03:30.360 --> 0:03:33.520 Mark German, who is our hands on product guy, can 0:03:33.560 --> 0:03:37.160 also will delve into how much these sort of chatbots, 0:03:37.200 --> 0:03:39.920 celebrity endorse some of them, or notably just the way 0:03:39.960 --> 0:03:41.840 in which you think Generator ai is going to ut 0:03:41.880 --> 0:03:43.960 the ante on some of their devices and indeed the 0:03:44.000 --> 0:03:48.640 offering they have for across the board social media. 0:03:48.760 --> 0:03:51.720 I certainly think the new devices are impressive, right, but 0:03:51.800 --> 0:03:54.640 this is really maybe the last stand for Meta right. 0:03:54.720 --> 0:03:56.920 Meta for the last few years has been pushing the 0:03:57.000 --> 0:04:00.080 idea of their quest headset to being the very core 0:04:00.120 --> 0:04:03.120 of the metaverse. Right, This idea of using headsets and 0:04:03.240 --> 0:04:07.440 virtual reality for the future of working online, for communicating 0:04:07.440 --> 0:04:10.000 with people, as the future of the social network. But 0:04:10.040 --> 0:04:13.080 if you watched Meta connect You'll notice that Mark Zuckerberg 0:04:13.160 --> 0:04:16.560 didn't really mention the metaverse, right, This latest Quest three, 0:04:16.720 --> 0:04:19.799 these new smart glasses with ray ban to pivot away 0:04:19.800 --> 0:04:23.320 from the metaverse and to move towards two things, productivity 0:04:23.680 --> 0:04:26.960 and AI. Right, they're pushing towards what Apple is doing 0:04:27.000 --> 0:04:29.680 with mixed reality, and I think the quest headset. The 0:04:29.760 --> 0:04:34.280 goal there is to focus on performance, gaming and productivity. 0:04:34.320 --> 0:04:36.839 Whereas the smart classes they have a lot of AI features. 0:04:36.880 --> 0:04:39.000 Now let's take a look at the AI. There's these 0:04:39.000 --> 0:04:43.159 generative AI chatbots, There's these celebrity chat heads. There are 0:04:43.160 --> 0:04:46.680 a few other things related to stickers. There's AI based collaboration, 0:04:47.120 --> 0:04:49.960 and these are things Meta really needed to do, right, 0:04:50.080 --> 0:04:53.000 But nothing they announced this week is novel. At this point, 0:04:53.080 --> 0:04:56.200 we've seen a lot of similar technology from Microsoft, from 0:04:56.240 --> 0:04:58.800 Google already, from Amazon a couple of weeks ago, certainly 0:04:58.839 --> 0:05:01.800 from open ai and others. So metas a bit of 0:05:01.839 --> 0:05:03.960 a laggard here, but they did what they needed to 0:05:04.000 --> 0:05:06.680 do to be there in twenty twenty four, which of 0:05:06.680 --> 0:05:08.680 course is going to be the year of AI for 0:05:08.760 --> 0:05:09.520 Apple as well. 0:05:10.640 --> 0:05:15.160 So what does AI look like at Meta in its 0:05:15.240 --> 0:05:16.960 suite of apps? You know, I don't know if you're 0:05:16.960 --> 0:05:20.680 still using Facebook, Theapple dot Com, but you're on Instagram, 0:05:20.960 --> 0:05:23.320 did they demonstrate what that actually looks like as a 0:05:23.360 --> 0:05:25.240 consumer user of social media? 0:05:26.320 --> 0:05:28.400 Yeah, I mean AI is now going to be completely 0:05:28.480 --> 0:05:31.279 integrated across the suite of Facebook apps, whether that's the 0:05:31.279 --> 0:05:34.960 main Facebook Blue app, whether that's Messenger, Instagram, WhatsApp, and 0:05:35.000 --> 0:05:38.440 what you're going to get there is a chat GPT 0:05:38.760 --> 0:05:43.159 like system integrated as a chatbot into those different messaging services, right, 0:05:43.200 --> 0:05:45.400 So have it write messages for you, have it do 0:05:45.480 --> 0:05:48.920 collaboration on your behalf with other people in your contact list. 0:05:49.160 --> 0:05:52.360 So it's a fully integrated expression of this generative AI, 0:05:52.680 --> 0:05:55.000 which is really what chat GBT has been missing. Chat 0:05:55.040 --> 0:05:58.080 GBT is this core technology. It's a novel, it can 0:05:58.120 --> 0:06:00.680 do some cool things, but it's not in integrated into 0:06:00.680 --> 0:06:02.719 a platform. And you're seeing Meta being one of the 0:06:02.720 --> 0:06:06.719 first companies to show integration of AI across their platform, 0:06:07.000 --> 0:06:10.040 not to do similar not too unsimilar from when Amazon 0:06:10.080 --> 0:06:12.240 showed a couple of weeks ago general of AI being 0:06:12.240 --> 0:06:14.640 built into Alexa. So really the next step of these 0:06:14.640 --> 0:06:18.360 generative AI tools is moving from this sort of raw data, 0:06:18.440 --> 0:06:22.760 these raw functions into something integrated into existing platforms, and 0:06:22.800 --> 0:06:24.440 I think you're going to see that from Apple happen 0:06:24.520 --> 0:06:28.679 as well next year. And I think Meta really showed 0:06:28.720 --> 0:06:30.840 some of the most cool stuff so far that we've 0:06:30.839 --> 0:06:33.200 seen in the I world because of how integrated is 0:06:33.240 --> 0:06:36.520 into the existing workflows that consumers use on a daily basis. 0:06:37.320 --> 0:06:39.600 Okay, you heard from Mark number one. That was Zuckerberg's 0:06:39.600 --> 0:06:41.800 thanks to Bloomberg's Mark German, he's Mark number two. 0:06:41.839 --> 0:06:43.760 Let's get to Mark number three. 0:06:43.880 --> 0:06:46.960 Joining us now is analyst Mark Mahaney over at Evercresi, 0:06:47.120 --> 0:06:50.520 Senior managing Director and outperform rating on Meta with a 0:06:50.560 --> 0:06:52.599 four hundred and thirty five dollars price target. 0:06:52.640 --> 0:06:52.839 Mark. 0:06:52.839 --> 0:06:56.719 I start by asking you, do you understand how Meta 0:06:56.760 --> 0:07:00.440 will make money from integrating its generative AI programs into 0:07:00.440 --> 0:07:01.719 the existing suite of apps. 0:07:03.080 --> 0:07:06.080 Yes, explain it to us. 0:07:06.600 --> 0:07:10.440 Okay, so sorry about that, but yes, Look, they've been 0:07:10.680 --> 0:07:14.120 they've been using AI. I mean, if you used it. 0:07:14.120 --> 0:07:16.720 There are three billion people who use Facebook and Instagram, 0:07:16.800 --> 0:07:18.640 and those people who have used it have noticed something 0:07:18.680 --> 0:07:20.760 in the last two years that's been driven by AI, 0:07:20.960 --> 0:07:25.280 which is the news feed has changed. It's gone from 0:07:25.360 --> 0:07:28.840 just content about from your friends and family to content 0:07:29.400 --> 0:07:32.119 from across the Internet. It's come from being a social site, 0:07:32.240 --> 0:07:34.440 social media site with the accent on social, to a 0:07:34.520 --> 0:07:37.320 social media site with an accent on media. That's artificial 0:07:37.320 --> 0:07:40.320 intelligence that's helped them that they've deployed it to make 0:07:40.360 --> 0:07:44.640 the user experience more, more broader, more all encompassing, and 0:07:44.680 --> 0:07:47.840 it's paid off. You've seen rising engagement. Then flip it 0:07:47.840 --> 0:07:50.880 over to the advertisers side. You've seen return on ad spend, 0:07:51.320 --> 0:07:55.160 remprove recover at meta over the last year. That's showing 0:07:55.280 --> 0:07:58.080 up in this dramatically accelerating ad revenin growth. It shows 0:07:58.160 --> 0:08:02.320 up in our in our in our advertiser channel checks. 0:08:02.320 --> 0:08:04.920 So look, we've already seen successful deployment of AI. I 0:08:04.960 --> 0:08:07.440 don't think the market realizes this. And now what they're 0:08:07.440 --> 0:08:09.680 doing is taking it a step further with generative AI 0:08:10.200 --> 0:08:12.480 and the use of chatbots. In the use of these 0:08:13.120 --> 0:08:15.520 of these I would you call them these little widgets, 0:08:15.560 --> 0:08:18.120 you know, emojis, et cetera. On the site, they're going 0:08:18.200 --> 0:08:21.320 to make the site even more engaging using generative AI. 0:08:21.720 --> 0:08:23.800 And on the chatbox side, here's it, they're going to 0:08:23.800 --> 0:08:26.080 better monetize youse. It's going to increase your engagement on 0:08:26.120 --> 0:08:28.880 the site. But then with the chatbots, there's a real 0:08:28.920 --> 0:08:32.960 pitch here for businesses. This can reduce materially customer service costs. 0:08:32.960 --> 0:08:36.000 This gives businesses a chance. Businesses that rely on WhatsApp 0:08:36.080 --> 0:08:39.079 and Facebook Messenger to interact with customers, This allows them 0:08:39.120 --> 0:08:42.960 to better more efficiently handle customer complaints, customer service requests, 0:08:42.960 --> 0:08:43.360 et cetera. 0:08:43.480 --> 0:08:45.280 So I think there's a lot of wins here. 0:08:45.400 --> 0:08:49.160 Everybody focuses us in then video and AWS and Microsoft 0:08:49.200 --> 0:08:52.160 is the big plays off of infrastructure and platforms. But 0:08:52.240 --> 0:08:55.280 here's the killer app, and it's a Facebook meta that's 0:08:55.320 --> 0:08:57.960 deploying generative AI right in front of our faces, and 0:08:58.000 --> 0:09:01.480 they're using it to improve user engage and advertisers spend. 0:09:02.400 --> 0:09:05.040 Okay, So that, with a bit of a mic drop mark, 0:09:05.360 --> 0:09:08.280 was a great analysis of how we're going to see 0:09:08.440 --> 0:09:11.320 money spinning out of generative AI. How does it fit 0:09:11.360 --> 0:09:15.680 into well, the rebranded meta, the metaverse, the actual hardware. 0:09:15.800 --> 0:09:17.880 How much do you think that is a decent future 0:09:17.880 --> 0:09:20.360 competitor to what Apple will eventually bring us in the 0:09:20.400 --> 0:09:22.280 first quarter of twenty twenty four. 0:09:22.559 --> 0:09:24.240 Yeah, So I don't know the answer to that, Caroline. 0:09:24.240 --> 0:09:26.720 That's tougher and what I find interesting about the. 0:09:26.720 --> 0:09:28.800 Way the stock traded, and I don't want to over 0:09:28.840 --> 0:09:32.640 ascribe intelligence to the markets. Market's usually right, But as 0:09:33.120 --> 0:09:37.840 we had conversations yesterday during Metaconnect about the metaverse, about 0:09:37.880 --> 0:09:41.200 the devices and the glasses, the stock kind of tricked down, 0:09:41.600 --> 0:09:44.359 and then we started getting into generative AI, the stock. 0:09:44.160 --> 0:09:45.720 Moved up, and that's the focus today. 0:09:45.760 --> 0:09:47.920 So I think that what it tells you is the 0:09:47.960 --> 0:09:50.479 market would like to hear a little less from Suckerberg 0:09:50.600 --> 0:09:53.800 in company about the metaverse and more about how they're 0:09:53.840 --> 0:09:55.080 going to deploy generative AI. 0:09:55.320 --> 0:09:57.000 And I think Suckerberg kind of got the memo. 0:09:57.080 --> 0:09:59.360 I think this was event that was kind of pitched 0:09:59.360 --> 0:10:01.840 as kind of part metaverse, part AI, but when it 0:10:01.880 --> 0:10:04.439 actually came to giving us details, we got a lot 0:10:04.520 --> 0:10:08.120 less metaverse, a lot less Oculus Quest, and we got a. 0:10:08.120 --> 0:10:10.079 Lot more AI. And that's why the stock's reacting the 0:10:10.120 --> 0:10:10.760 way it is. 0:10:10.800 --> 0:10:13.040 So you know, the market's telling Zuckerberg, you know, kind of, 0:10:13.120 --> 0:10:15.920 let's limit down the amount that you're investing in the metaverse, 0:10:15.960 --> 0:10:17.680 and we really appreciate what you're doing. 0:10:17.520 --> 0:10:19.280 In generative AI. That's one of the reasons we think 0:10:19.320 --> 0:10:20.160 the stock goes hired. 0:10:20.760 --> 0:10:23.880 But I still want to ask you, Monk, does spending 0:10:24.000 --> 0:10:28.400 fifteen minutes with a mixed reality headset on either watching 0:10:28.440 --> 0:10:30.560 something or playing something at the weekend? 0:10:30.600 --> 0:10:31.680 Does that appeal to you? 0:10:32.440 --> 0:10:35.040 I got I've tried both. I've got both versions of 0:10:35.080 --> 0:10:37.600 the Quest, you know, the Gen one and Gen two. 0:10:38.600 --> 0:10:40.560 The truth of the fact is I gave it to 0:10:40.600 --> 0:10:42.959 my children then they loved it for a day. So 0:10:43.120 --> 0:10:47.280 it's if I've seen something that's enduringly appealing to people, 0:10:47.360 --> 0:10:51.360 to adults and to all sorts of people. Know not yet, 0:10:51.400 --> 0:10:52.600 but is the potential there? 0:10:52.640 --> 0:10:55.240 I mean, why not. If there wasn't potential, you wouldn't 0:10:55.280 --> 0:10:56.640 have Apple entering this space. 0:10:56.720 --> 0:10:59.960 So there is a there there, Whether whether it you know, 0:11:00.120 --> 0:11:02.040 I don't know what if it's if it's Quest seven 0:11:02.080 --> 0:11:05.360 that really breaks through and then you really at a 0:11:05.440 --> 0:11:07.560 lower price point and you really get people kind of 0:11:07.640 --> 0:11:10.199 massive option of these devices. I think there's a potential 0:11:10.200 --> 0:11:11.280 for that, And then you have to figure out what 0:11:11.360 --> 0:11:14.439 are the other apps? Is there other educational apps? Absolutely, 0:11:14.640 --> 0:11:18.160 are there, enterprise apps probably, Whether whether Meta can really 0:11:18.160 --> 0:11:20.280 succeed with those or not, that's a different question. 0:11:20.400 --> 0:11:22.240 But yeah, I'm kind of believe that there is a 0:11:22.320 --> 0:11:25.160 there there Virtual reality, mixed reality, augmented reality. 0:11:25.360 --> 0:11:28.520 I think there's enough thoughtful people investing in this space 0:11:28.559 --> 0:11:30.920 and people looking for a different experience. I mean it 0:11:30.960 --> 0:11:32.840 is a wow experience. It just there's a lot of 0:11:32.840 --> 0:11:34.320 things that need to improve. But yeah, I think there's 0:11:34.320 --> 0:11:34.959 a there there. 0:11:35.840 --> 0:11:36.760 Timing is everything. 0:11:36.960 --> 0:11:39.000 I mean, in many ways, we saw chatbots and we 0:11:39.040 --> 0:11:42.120 saw AI with M and that was what twenty fifteen 0:11:42.120 --> 0:11:43.920 to twenty eighteen and they decided to put that on 0:11:43.960 --> 0:11:46.800 ICE because it wasn't as useful now a generator of AI, 0:11:46.960 --> 0:11:51.679 these chatbots are. Is there a winner takes all scenario? 0:11:51.760 --> 0:11:53.559 Hair mark? Because it's interesting that. 0:11:53.679 --> 0:11:56.720 Of course in this respect we've got meta teaming with 0:11:56.800 --> 0:12:00.400 Being and with Microsoft here, No, I. 0:12:00.320 --> 0:12:00.840 Don't think so. 0:12:01.200 --> 0:12:02.640 I think there's going to be a lot of plays 0:12:02.679 --> 0:12:05.160 and if we just step back, Yeah, it's a wonderful 0:12:05.320 --> 0:12:09.120 development that we're all going to benefit from as you know, 0:12:09.160 --> 0:12:12.520 as consumers, as businesses, as individuals, you know, well what 0:12:12.640 --> 0:12:12.960 have you? 0:12:13.200 --> 0:12:16.600 We're seeing just a dramatic step up in compute power 0:12:17.240 --> 0:12:19.400 and that's just a lot. I mean that all builds 0:12:19.520 --> 0:12:20.000 on you. 0:12:20.480 --> 0:12:22.680 You wouldn't have Jenai if you didn't have the Internet, 0:12:22.720 --> 0:12:24.440 if you didn't have mobile internet and if you didn't 0:12:24.440 --> 0:12:26.520 have cloud, but they all build on each other. 0:12:26.840 --> 0:12:29.800 It just means that these digital experiences are going to. 0:12:29.760 --> 0:12:34.400 Become more relevant amthing, more personalized, more useful, more entertaining. 0:12:34.840 --> 0:12:37.480 So I think it's just super exciting, and I think 0:12:37.480 --> 0:12:38.839 you're going to see a lot. 0:12:38.880 --> 0:12:39.920 You know, we've got these. 0:12:39.720 --> 0:12:43.280 Waves now if infrastructure and platform investments, and people are 0:12:43.320 --> 0:12:45.280 kind of waiting to see what apps come out of this, 0:12:45.840 --> 0:12:47.760 And I think I'm sure there are going to be 0:12:47.760 --> 0:12:49.520 some apps that you know, I can't think of, but 0:12:49.600 --> 0:12:51.280 that'll be out in the next three to five years 0:12:51.280 --> 0:12:53.120 that we'll look back on and say wow, or look 0:12:53.160 --> 0:12:54.000 at it and say wow. 0:12:54.280 --> 0:12:56.079 But there's also the ability to apply. 0:12:55.920 --> 0:12:59.959 Jenai today to improve existing processes, existing experiences. 0:13:00.679 --> 0:13:02.480 But I think there's one wonderful example on the right 0:13:02.520 --> 0:13:03.199 in front of us now. 0:13:03.280 --> 0:13:06.199 It's Meta Mamahiney who doesn't want Snoop Dogg as a 0:13:06.240 --> 0:13:08.960 dungeon master? Hey ever, Core I sign we thank you 0:13:09.000 --> 0:13:19.320 so much. Epic Games. It's the maker of, of course, 0:13:19.360 --> 0:13:22.000 the popular online game Fortnite. Becau's laying off about nine 0:13:22.080 --> 0:13:24.959 hundred employees. That's about sixteen percent of its workforce. That's 0:13:24.960 --> 0:13:27.199 all according to source, who says the job carts were 0:13:27.200 --> 0:13:29.800 announced in a memo to staff. Epic is one of 0:13:29.880 --> 0:13:32.480 the biggest privately held video game companies in the world. 0:13:32.640 --> 0:13:35.200 And of course, speaking of Epic, well, we know that 0:13:35.280 --> 0:13:38.400 it's had a long running battle with Apple. We've got 0:13:38.440 --> 0:13:40.400 an update on it for you and hard of it all. 0:13:40.679 --> 0:13:44.440 Epic claims that Apple's online marketplace policies violate federal law, 0:13:44.640 --> 0:13:46.920 claims that a federal judge rejected two years ago. But 0:13:47.120 --> 0:13:50.720 yesterday Epic asked the US Supreme Court to review that ruling, 0:13:50.920 --> 0:13:53.760 and just this morning, Apple found its own petition with 0:13:53.800 --> 0:13:56.120 a Supreme Court to review a different part of that 0:13:56.240 --> 0:13:59.240 ruling from two years ago. Let's spreak it all down. 0:13:59.320 --> 0:14:02.480 Blue Mos has been keeping up to speed with what 0:14:02.600 --> 0:14:06.240 is a very long saga, and just from your perspective, 0:14:06.760 --> 0:14:09.960 what Epic is trying to bring to the Supreme Court's 0:14:10.000 --> 0:14:13.679 attention is one particular nuance in the two years ago ruling, 0:14:13.720 --> 0:14:15.080 a California part of the law. 0:14:16.320 --> 0:14:20.080 Yes, that's right, so Apple one a majority of the 0:14:20.200 --> 0:14:25.080 ruling that basically said that it's app store policies don't 0:14:25.160 --> 0:14:29.120 violate federal antitrust laws. And that's the part that Epic 0:14:29.280 --> 0:14:32.640 is now appealing at this Supreme Court. And Epic one 0:14:32.720 --> 0:14:36.480 a ruling on a California state law claim related to 0:14:36.520 --> 0:14:40.840 competition law, where a judge found that the fact that 0:14:40.880 --> 0:14:46.000 Apple doesn't allow developers to point to alternative payment methods 0:14:46.280 --> 0:14:48.640 that perhaps through a link or a button or an 0:14:48.680 --> 0:14:51.400 email saying hey, you can go on the web and 0:14:51.520 --> 0:14:54.280 go directly to my website and make a payment. So 0:14:55.240 --> 0:14:58.040 the jets thought there was unlawful. And that's the part 0:14:58.120 --> 0:15:02.400 that Apple is appealing, and Apple wants to make sure 0:15:02.440 --> 0:15:04.440 that that part of the decision is reversed. 0:15:05.680 --> 0:15:09.320 And so that's the part that Apple is appealing. In parallel, 0:15:10.280 --> 0:15:13.240 Epic is also asking the courts to review a separate 0:15:13.280 --> 0:15:14.560 part of the original decision. 0:15:14.560 --> 0:15:16.040 What does Epic want. 0:15:16.760 --> 0:15:21.360 So Epic one part which I talked about, But Apple 0:15:21.440 --> 0:15:25.600 won on the larger sort of aspect about federal antitrust laws, 0:15:25.760 --> 0:15:30.760 and the court held that it's APSTRO policies were absolutely 0:15:30.920 --> 0:15:35.800 fine and didn't violate any anti competition laws. So it 0:15:35.960 --> 0:15:39.760 upheld ABSTRO policies at large. And that's the part that 0:15:40.240 --> 0:15:42.920 Apple won, and Epic wants that reversed. 0:15:43.360 --> 0:15:45.880 All right, Bloomberg's Malti Nayak at the face of it 0:15:45.920 --> 0:15:48.240 and all the court battles, Thank you so much. Coming 0:15:48.320 --> 0:15:51.640 up here on BlueBag technology, Google has become a favorite 0:15:51.640 --> 0:15:56.080 for law enforcement seeking location and search data even for 0:15:56.200 --> 0:15:59.080 nonviolent cases. That's today's big take. We're going to bring 0:15:59.080 --> 0:16:01.160 you one of the reporters behind it. Coming up next, 0:16:01.200 --> 0:16:03.320 I will also take a quick look at AMD. There 0:16:03.360 --> 0:16:06.480 is no newsflow catalysts behind this stock, but on track 0:16:06.520 --> 0:16:10.120 for its biggest jump since May. AMD on a two 0:16:10.200 --> 0:16:13.480 day basis also on track for its biggest jump since May. 0:16:13.760 --> 0:16:17.200 A bit of momentum rising for two straight sessions in 0:16:17.240 --> 0:16:19.000 today's session up five point eight percent. 0:16:19.080 --> 0:16:19.840 This has been big. 0:16:19.720 --> 0:16:39.920 Technology time now for Talking Tech. First up, Elonmusk SpaceX Well. 0:16:39.920 --> 0:16:42.520 It's received its first contract from the US Space Force. 0:16:42.880 --> 0:16:45.720 It will provide customer satellite communications for the military under 0:16:45.760 --> 0:16:49.800 the company's new Starshill program. The decision extends Musk's role 0:16:49.880 --> 0:16:51.440 as a defense contract. 0:16:51.240 --> 0:16:52.960 Also teaming up with US agency. 0:16:53.000 --> 0:16:54.920 This is Palenteer signing a two hundred and fifty million 0:16:54.960 --> 0:16:57.760 dollar contract from the Defense Department. Under the new three 0:16:57.840 --> 0:17:02.040 year contract, Palenteer will research, develop and machine learning technology 0:17:02.080 --> 0:17:06.400 and affirm it's relationship with the US government, plus Apple's 0:17:06.480 --> 0:17:10.040 new iPhone fifteen, maybe too hot of a commodity, at 0:17:10.119 --> 0:17:12.639 least that's what some users are complaining about. How some 0:17:12.760 --> 0:17:15.520 mcgrites has spread online and on social media, saying that 0:17:15.560 --> 0:17:17.959 the back or the side of the phone comes too 0:17:18.040 --> 0:17:20.520 hot to touch while gaming, during phone calls, or indeed 0:17:20.520 --> 0:17:24.080 when charging it. So Apple so far has not responded 0:17:24.080 --> 0:17:25.080 to request for common. 0:17:25.000 --> 0:17:28.480 Ed that's a lot to do with titanium. As reported 0:17:28.520 --> 0:17:31.600 by Mark German now Bloomberg's shining a light on a 0:17:31.640 --> 0:17:36.560 growing trend regarding privacy concerns. Some police are using warrants 0:17:36.600 --> 0:17:40.080 to dig up location and search data from Google, even 0:17:40.119 --> 0:17:42.800 for nonviolent cases or on those that have nothing to 0:17:42.880 --> 0:17:46.280 do with the crime. It's the big, big take out 0:17:46.359 --> 0:17:49.720 in the Bloomberg magazine on October third for more scud 0:17:49.720 --> 0:17:51.880 of Julia Love, who covers all things Alphabet, the parent 0:17:51.920 --> 0:17:53.439 of Google, and author this story. 0:17:53.560 --> 0:17:54.680 Let's go through the mechanics. 0:17:54.720 --> 0:17:57.240 So the police try and get a warrant from a judge, 0:17:57.240 --> 0:18:00.280 and they go to Google and they ask for this data. 0:18:00.320 --> 0:18:05.480 Why Google has become one of the favorite destinations for 0:18:05.560 --> 0:18:08.200 law enforcement when they're trying to solve crimes. It has 0:18:08.240 --> 0:18:12.080 a big repository of location information. So if say, a 0:18:12.119 --> 0:18:16.520 burglary takes place at a jewelry store and the police, 0:18:16.720 --> 0:18:19.080 if they don't have other sources of evidence, they might 0:18:19.119 --> 0:18:21.640 go to Doodle to see if Goodle happens to have 0:18:21.720 --> 0:18:25.720 registered any devices that were present at the location near 0:18:25.800 --> 0:18:28.440 the time of the crime. And that can often be 0:18:28.960 --> 0:18:31.720 a first step in an investigation, but it raises big 0:18:31.760 --> 0:18:32.840 privacy concerns. 0:18:33.840 --> 0:18:35.960 Let's talk about the privacy concerns then. I think what's 0:18:36.000 --> 0:18:38.720 interesting is you write that this is often an avenue 0:18:38.720 --> 0:18:40.639 when a detective is at a loss. They can't go 0:18:40.680 --> 0:18:43.119 any further, so they turn to Google. But they are 0:18:43.200 --> 0:18:44.399 getting hold of people's data. 0:18:45.359 --> 0:18:45.639 Yes. 0:18:46.080 --> 0:18:51.240 The problem is that because Goodle has such big databases, 0:18:51.600 --> 0:18:55.360 that means that in order to find the potential. 0:18:54.800 --> 0:18:57.080 Suspects, they have to also. 0:18:56.920 --> 0:18:59.680 Go through data of people who had nothing to do 0:18:59.800 --> 0:19:03.000 with the crime, and police sometimes will have to go 0:19:03.119 --> 0:19:07.000 through those innocent users data in order to home in 0:19:07.040 --> 0:19:10.040 on the users who truly might be involved. 0:19:11.359 --> 0:19:12.520 Extraordinary the numbers. 0:19:12.800 --> 0:19:16.040 Google says it received a record sixty four hundred and 0:19:16.160 --> 0:19:19.920 seventy two search warrants in the US alone last year, 0:19:20.040 --> 0:19:22.000 and we know that's a lot. We know that in 0:19:22.000 --> 0:19:25.399 many ways, Apple has a different way of allowing or 0:19:25.520 --> 0:19:28.640 disallowing the sharing of such information. But you look, they 0:19:28.680 --> 0:19:31.119 also if you using Google Maps on your Apple iPhone, 0:19:31.200 --> 0:19:35.639