WEBVTT - AI Global Coalition, Amazon's Shareholder Letter 0:00:01.600 --> 0:00:05.920 From Marhart where Innovation, Money and Power Collie in Silicon 0:00:06.000 --> 0:00:06.920 Vallet NBN. 0:00:07.240 --> 0:00:11.480 This is Bloomberg Technology with Caroline Hyde and Ed loud Love. 0:00:24.360 --> 0:00:27.200 And Caroline Heide Bloomberg's world headquarters in New York and 0:00:27.200 --> 0:00:30.440 AURM Ed Lodlow in San Francisco. This is Bloomberg Technology 0:00:30.560 --> 0:00:31.000 coming up. 0:00:31.080 --> 0:00:34.840 Amazon CEO Annie Jase He says that general to AI 0:00:35.000 --> 0:00:35.839 boom is going to be. 0:00:35.800 --> 0:00:37.680 Built on Amazon Web Services. 0:00:38.080 --> 0:00:40.040 Or we need the takeaways from his annual letters. 0:00:39.840 --> 0:00:44.479 To shareholders class technology heavyweights to send on Washington for 0:00:44.560 --> 0:00:46.760 the White House steak dinner with big names like Jeff 0:00:46.760 --> 0:00:50.479 Bezos and Tim Kirk attending a lavish event and. 0:00:50.479 --> 0:00:54.040 Open AI CEO Sam Altman pictures a global AI coalition 0:00:54.160 --> 0:00:56.040 on his visit to the Middle East. 0:00:56.160 --> 0:00:56.600 Next stop. 0:00:56.800 --> 0:01:00.520 Maybe we see him over on Capitol Hill too. We'll 0:01:00.520 --> 0:01:02.560 discuss that and so much more throughout this hour. But Ed, 0:01:02.640 --> 0:01:04.800 we start on these markets up a quarter of a 0:01:04.840 --> 0:01:07.679 percentage point currently NASDAK managing. 0:01:07.280 --> 0:01:08.839 To put itself off of its lows. 0:01:09.080 --> 0:01:12.120 This is we once again really tackle inflationary pressures. Whether 0:01:12.160 --> 0:01:15.360 it's a PPI number coming after the CPI print yesterday, 0:01:15.600 --> 0:01:18.360 both showing inflationary pressures just start dialing up that little bit. 0:01:18.640 --> 0:01:21.800 And we're seeing though, managing the NASDAK to outperform as bomb. 0:01:21.640 --> 0:01:23.600 Markets actually pull back a little bit. I'm looking at 0:01:23.600 --> 0:01:24.520 the two year yield. 0:01:24.720 --> 0:01:26.800 We're outperforming on the front end of the curve, whereas 0:01:26.800 --> 0:01:29.240 the back end, the tenure yield, for example, you'll still 0:01:29.280 --> 0:01:32.080 pushing higher. But really the big move was yesterday, and 0:01:32.080 --> 0:01:33.959 looking at what's happening in the euro it's not just 0:01:34.000 --> 0:01:36.240 all about the Federal Reserve. It's about global world banks 0:01:36.240 --> 0:01:37.759 at the moment, central. 0:01:37.360 --> 0:01:37.959 Banks that is. 0:01:38.160 --> 0:01:40.600 And we're looking at what the ECB said, look staying 0:01:40.600 --> 0:01:43.080 pat as many had anticipated in terms of interest rates, 0:01:43.240 --> 0:01:46.680 but signaling that inflationary pressures are dialing down across the Atlantic, 0:01:46.959 --> 0:01:48.960 and therefore could we see cuts coming or off by 0:01:49.000 --> 0:01:50.680 three tens percent versus the US dollar. 0:01:50.720 --> 0:01:52.480 Moving on, look at what else is performing versus the 0:01:52.520 --> 0:01:54.200 US dollar. Crypto I'm down. 0:01:54.040 --> 0:01:56.040 By two tens percent on bitcoin at the moment, just 0:01:56.040 --> 0:01:57.520 sub that seventy thousand dollars level. 0:01:57.560 --> 0:01:59.040 But what are you watching on the micro. 0:01:59.440 --> 0:02:01.280 There are a lot of stories to fit in today. 0:02:01.320 --> 0:02:02.880 Apple's a name that we're going to look at later 0:02:02.880 --> 0:02:05.240 in the program with Bloomberg's Mark German rough eight tens 0:02:05.280 --> 0:02:09.560 one percent. Early unionization efforts are kind of the main headline. 0:02:09.560 --> 0:02:12.040 But there is a note from JP Morgan analysts that 0:02:12.200 --> 0:02:14.720 say that hedge funds are now looking at this stock 0:02:15.120 --> 0:02:19.120 and considering what happens next with artificial intelligence in the 0:02:19.160 --> 0:02:23.160 context of value add iOS and the handset. Hard to 0:02:23.240 --> 0:02:25.320 know what the driver is, if any at all, but 0:02:25.360 --> 0:02:27.200 we hire eight tens to one percent, and given its 0:02:27.280 --> 0:02:30.720 market capitalization, we always pay attention to Apple because if 0:02:30.720 --> 0:02:34.120 its waiting on major indices. There is an annual shareholder 0:02:34.200 --> 0:02:37.720 letter plus AI theme in today's show. I am very 0:02:37.760 --> 0:02:41.120 excited about it. JP Morgan is down nine tens to 0:02:41.200 --> 0:02:43.880 one percent Monday night. I know I wasn't here earlier 0:02:43.919 --> 0:02:48.320 in the week. Put the shareholder letter out and says AI, 0:02:48.600 --> 0:02:50.240 and we're going to talk about the numbers behind that. 0:02:50.280 --> 0:02:52.600 I think it's really interesting, so to Amazon up three 0:02:52.680 --> 0:02:56.639 tens to one percent Andy Jasse's annual letter. The focus 0:02:56.680 --> 0:03:02.519 about AI is interesting specific aws. Amazon is going to 0:03:02.520 --> 0:03:06.120 be a facilitator, a place where AI is built by others, 0:03:06.480 --> 0:03:09.320 maybe not building so much generator of AI themselves. That's 0:03:09.360 --> 0:03:11.480 the story you and I have told quite a lot 0:03:11.800 --> 0:03:13.120 in recent weeks and months. 0:03:13.440 --> 0:03:15.240 We are long shareholder letters. 0:03:15.400 --> 0:03:17.880 Let's dig in with punam Call and BLUEBG Intelligence and 0:03:18.040 --> 0:03:20.919 Ed just puts it so eloquently there. Ultimately, they want 0:03:20.919 --> 0:03:24.600 to be at the very heart the infrastructure of generative AI. Yes, 0:03:24.639 --> 0:03:28.720 they will build a substantial number of GENAI applications ourselves, 0:03:28.960 --> 0:03:30.280 but they're looking to others to build. 0:03:31.600 --> 0:03:32.799 Yes, you're absolutely right. 0:03:32.840 --> 0:03:35.920 You know, right now Amazon lags Microsoft when it comes 0:03:35.960 --> 0:03:40.000 to AI because Microsoft has access to the open AI. However, 0:03:40.200 --> 0:03:43.440 as they build these building blocks going forward, they can 0:03:43.520 --> 0:03:46.160 close that gap over time. So we think the investment 0:03:46.240 --> 0:03:48.680 is right. We think the time is right, and generator 0:03:48.680 --> 0:03:51.280 of AI will not only help fueld the AWS business, 0:03:51.320 --> 0:03:54.920 but also it's e commerce marketplace business where it will 0:03:54.920 --> 0:03:56.600 help drive sales higher. 0:03:57.920 --> 0:04:01.320 Pun and what we're talking about specifically is I think 0:04:01.840 --> 0:04:03.720 and you can go to Bedrock if you're a very 0:04:03.800 --> 0:04:08.000 large enterprise player or a smaller startup and build your 0:04:08.040 --> 0:04:10.360 own large language model, you can take advantage of a 0:04:10.400 --> 0:04:13.680 third party large language model. Caroline and I have spoken 0:04:13.760 --> 0:04:18.200 to Anthropic, for example Daniella m O'Day, and she talks 0:04:18.240 --> 0:04:18.760 about all the. 0:04:18.720 --> 0:04:20.839 Business they're winning through AWS. 0:04:20.839 --> 0:04:25.840 Bedrock What I don't know is Amazon's cloud business AWS 0:04:25.920 --> 0:04:31.280 actually gaining new customers, gaining growth or market share because 0:04:31.279 --> 0:04:32.880 of their strategy with Bedrock. 0:04:33.960 --> 0:04:36.080 Yeah, I think you know, over time they will gain 0:04:36.120 --> 0:04:38.880 new customers. It's just a matter of getting these large 0:04:38.920 --> 0:04:42.800 language models developed and them getting the customers interested. But 0:04:42.920 --> 0:04:45.960 we do think their scope for Amazon to continue to 0:04:46.080 --> 0:04:47.239 gain in that vertical. 0:04:48.080 --> 0:04:52.279 What's interesting is well Google's event earlier this week, Cloud Event, 0:04:52.560 --> 0:04:54.880 and they were really saying that it's startups that are 0:04:54.880 --> 0:04:59.400 coming to them for cloud. How much, ultimately do companies. 0:04:59.120 --> 0:05:01.400 Diversify, not go all in with one player. 0:05:02.720 --> 0:05:06.040 I think diversification will happen across the board. It depends 0:05:06.160 --> 0:05:08.479 on what you're using and where you want to be. 0:05:08.839 --> 0:05:11.760 Amazon has done a great job in attracting not just 0:05:11.760 --> 0:05:14.440 the startups but also established businesses, So. 0:05:14.400 --> 0:05:16.680 We think the scope is wide. 0:05:16.960 --> 0:05:19.080 We do think they're in the early innings of this, 0:05:19.480 --> 0:05:21.520 and we do think right now they lag, but that 0:05:21.560 --> 0:05:23.440 doesn't mean that they'll lag for a long time. 0:05:24.760 --> 0:05:25.880 Let's talk about Andy Jesse. 0:05:26.440 --> 0:05:30.000 He comes from AWS, that was his world, but the 0:05:30.120 --> 0:05:33.320 story since he's taken the helm of Amazon has been 0:05:33.360 --> 0:05:37.039 about cost discipline. In fact, don't even call it discipline pooa, 0:05:37.120 --> 0:05:40.200 let's call it what it is, cutting cost lowering CAPEX. 0:05:40.480 --> 0:05:43.920 And when I read the letter, he seems committed to that. 0:05:44.080 --> 0:05:46.400 Still, yes, he does. 0:05:46.440 --> 0:05:49.440 In fact, you know, they've been highlighting since last quarter 0:05:49.440 --> 0:05:52.600 about the forty five cent reduction that they've had per 0:05:52.760 --> 0:05:55.560 unit in their cost basis, and they think they can 0:05:55.600 --> 0:05:59.200 press the pedal harder on that this year, largely as 0:05:59.240 --> 0:06:03.559 they base GLEE streamline their inbound fulfillment, and they parse 0:06:03.600 --> 0:06:07.800 out packages more efficiently to those regional distribution centers that 0:06:07.920 --> 0:06:09.440 allow for SIND delivery. 0:06:11.200 --> 0:06:14.720 Clunamgyle of Bloomberg Intelligence one of our analysts that leaves 0:06:14.760 --> 0:06:17.200 coverage of this stock, and we're really grateful to have 0:06:17.279 --> 0:06:21.599 you in reaction. Meanwhile, Amazon founder Jeff Bezos joined tech 0:06:21.640 --> 0:06:25.200 heavyweights last night at the White House state dinner hosted 0:06:25.240 --> 0:06:30.000 by President Biden for Japan's Prime Minister Fumiyo Kashida. Attendees 0:06:30.040 --> 0:06:35.840 included Bezos's fiance Lawrence Sanchez, Apple CEO Tim Cook and 0:06:36.160 --> 0:06:40.120 executive Lisa Jackson. Microsoft president Brad Smith was Intendants as 0:06:40.160 --> 0:06:43.880 a well, and actor Robert de Niro. Even vent capitalists 0:06:44.040 --> 0:06:47.320 including Robert Stavius of Bessemer Venture Partners. You also had 0:06:47.400 --> 0:06:52.520 Jamie Diamond, Massa Sun and John Gray of Blackstone and Caro. 0:06:52.680 --> 0:06:56.920 For me, the story is pretty clear here. Japan important 0:06:56.960 --> 0:07:00.440 for technology and the economy and more. 0:07:00.360 --> 0:07:03.880 Broadly for big get togethers of some important players, no 0:07:03.920 --> 0:07:05.800 matter where they tend to be based. I mean, this 0:07:05.960 --> 0:07:09.880 is where certain conversations had, deals are done. How many 0:07:09.920 --> 0:07:12.440 are having intimate conversations with the Prime Minister of Japan. 0:07:12.560 --> 0:07:15.640 But more broadly, I liked his Star Trek reference as well. 0:07:15.640 --> 0:07:17.920 If you heard some of the commentary coming out of 0:07:17.920 --> 0:07:19.760 the Leader of Japan, he was sort of going to 0:07:19.800 --> 0:07:22.320 go boldly where no one has been before in terms 0:07:22.320 --> 0:07:24.440 of deepening the US Japanese relationship. 0:07:24.440 --> 0:07:25.960 But this is more broad, isn't as well? 0:07:26.000 --> 0:07:28.080 I mean, there's a delightful menu that they managed to 0:07:28.080 --> 0:07:30.800 be having triage Raby state not bad. But this is 0:07:30.840 --> 0:07:33.760 also about deepening ties. But not just from an economic perspective. 0:07:33.800 --> 0:07:36.400 We've got to think of this from a geopolitical perspective, 0:07:36.400 --> 0:07:38.520 and notably what's happening with the Philippines coming in at 0:07:38.520 --> 0:07:41.240 the moment, and indeed what this means for China US relations. 0:07:42.200 --> 0:07:45.080 Yeah, I go straight to China when the CEOs turn up. 0:07:45.440 --> 0:07:48.120 You know that that market is important, right, whether it's 0:07:48.120 --> 0:07:50.440 for supply chain or the economy direct. 0:07:50.480 --> 0:07:51.720 So let's bring up menu back up. 0:07:51.760 --> 0:07:55.480 That is contemporary modern American Japanese fusion. 0:07:56.400 --> 0:07:57.160 That looks great. 0:07:57.720 --> 0:08:00.160 But there's also a political element to this as well, 0:08:00.200 --> 0:08:02.440 that Biden had a lot of big names in the 0:08:02.480 --> 0:08:03.960 White House in an election year. 0:08:04.040 --> 0:08:07.400 Character Yeah, I think that is really notable and ultimately 0:08:07.480 --> 0:08:10.560 trying to ensure that the economy is what Biden can 0:08:10.560 --> 0:08:12.400 hang his hat on as well. Many worrying about the 0:08:12.440 --> 0:08:15.480 inflationary pressures that were garnered yesterday and they did what 0:08:15.480 --> 0:08:19.160 this really means for Biden Bidenomics and the lack thereof 0:08:19.240 --> 0:08:22.400 but tech heavyweight really clear and present when it comes 0:08:22.440 --> 0:08:24.120 to relationships with US and Japan. 0:08:31.280 --> 0:08:32.080 JP Morgan. 0:08:32.320 --> 0:08:34.959 It kicks off earning season Banks they are at the 0:08:34.960 --> 0:08:37.480 start of them hammers tomorrow and earlier this week. Just 0:08:37.520 --> 0:08:39.440 remember we heard from the CEO Jamie Diamond in his 0:08:39.440 --> 0:08:42.880 annual letter to shareholders where he focused mainly on artificial 0:08:42.960 --> 0:08:46.480 intelligence joining us now to discuss how banksy utilizing the 0:08:46.520 --> 0:08:47.839 technology investing in it. 0:08:48.200 --> 0:08:50.680 Evidence CEO Alexandra was a Visita is with us. 0:08:50.760 --> 0:08:53.960 Evidence is an intelligent platform that really benchmarks attracts AI 0:08:54.000 --> 0:08:56.360 adoption across financial services sector. 0:08:56.280 --> 0:08:58.080 And JP Morgan is the standout performer. 0:08:58.160 --> 0:09:00.840 Alexandra, you think that's in some way akin to the 0:09:00.840 --> 0:09:01.680 performance of the bank. 0:09:01.679 --> 0:09:04.720 Can it stop more broadly, Yeah, well, thank you so 0:09:04.800 --> 0:09:07.319 much for having me on Caroline and ED. But its 0:09:07.360 --> 0:09:12.480 performance is incredibly strong in terms of its AI maturity, 0:09:12.679 --> 0:09:15.880 its head and shoulders above other banks. It was early 0:09:15.920 --> 0:09:20.360 to the game. Jamie Diamond made AI a focus for 0:09:20.400 --> 0:09:23.760 the banks six years ago, where he made clear that 0:09:23.960 --> 0:09:27.120 it was going to be an AI first organization and 0:09:27.200 --> 0:09:30.280 from that followed a lot of initiatives like establishing a 0:09:30.320 --> 0:09:33.280 research lab, you know, doubling down on hiring AI talent, 0:09:33.720 --> 0:09:37.400 reorganizing the EXAC team, and that really has paid off 0:09:37.440 --> 0:09:40.760 and you see, well, according to our measurements, you can 0:09:41.080 --> 0:09:43.559 see that they sort of really stand out against other 0:09:43.600 --> 0:09:46.840 banks and are incredibly strong on AI capabilities. 0:09:47.760 --> 0:09:51.400 We've been looking at the data behind JP Morgan's AI hiring. 0:09:51.440 --> 0:09:53.959 You just made a really interesting point, which is six 0:09:54.120 --> 0:09:55.960 years ago this all started. 0:09:56.040 --> 0:09:56.880 Let's show the chart. 0:09:57.800 --> 0:10:02.120 There's the AI hype of twenty two, twenty twenty three, 0:10:02.600 --> 0:10:04.600 but if you track the. 0:10:04.520 --> 0:10:05.920 Hiring and what's so interesting. 0:10:05.960 --> 0:10:09.600 The title of that chart is JP Morgan slows AI hiring. 0:10:10.000 --> 0:10:12.240 But look how elevated it was in twenty twenty two 0:10:12.320 --> 0:10:15.600 and it started back in twenty twenty. What do you 0:10:15.640 --> 0:10:18.600 make of that about how ahead of the curve or not? 0:10:19.000 --> 0:10:20.520 So to speak, JP Morgan. 0:10:20.280 --> 0:10:22.960 Is Yeah, I mean, I mean, first of all, it's 0:10:22.960 --> 0:10:25.080 a really important point that you make it in terms 0:10:25.120 --> 0:10:29.679 of the hype in twenty two and twenty three of 0:10:29.720 --> 0:10:32.720 AI and sort of what we're heading into is more 0:10:32.720 --> 0:10:35.360 of a let's sort of see what gets through production. 0:10:35.440 --> 0:10:36.479 It's much harder. 0:10:36.240 --> 0:10:38.440 Than we think, and sort of the use cases going 0:10:38.480 --> 0:10:43.360 from ideation to production just takes a little longer, and 0:10:43.400 --> 0:10:45.720 some of that slow down and hiring is also a 0:10:45.720 --> 0:10:49.679 little bit of a let's what talent do we actually need? 0:10:49.760 --> 0:10:52.000 But when you look at that chart, you can see 0:10:52.040 --> 0:10:55.640 that really being on a hiring tear from for the 0:10:55.679 --> 0:10:58.880 last sort of six seven years. And you know, the 0:10:59.400 --> 0:11:02.720 proportion of AI talent and the caliber of AI talent 0:11:02.800 --> 0:11:05.920 in the bank is second to none. So right now 0:11:05.920 --> 0:11:07.920 a lot of the banks are looking at like where 0:11:08.080 --> 0:11:11.240 you know, the onset of using you know, genitive AI, 0:11:11.840 --> 0:11:14.240 Where are we using it in the bank? Which which 0:11:14.280 --> 0:11:17.200 platforms are we going to use, whether it's open AI 0:11:17.360 --> 0:11:20.360 or Mistral or hugging face, which one of those, How 0:11:20.400 --> 0:11:23.160 does it fit into our particular needs and how do 0:11:23.240 --> 0:11:25.920 we refine it so so it gives us the best 0:11:25.920 --> 0:11:29.600 output possible. So there is a bit of a let's 0:11:29.600 --> 0:11:32.200 see what we can use internally of our AI talent 0:11:32.280 --> 0:11:36.240 that can you know, can help us, you know, refine 0:11:36.240 --> 0:11:39.040 that and before we sort of accelerate again, uh, and 0:11:39.080 --> 0:11:41.920 think about what we hire externally. But it should should 0:11:41.920 --> 0:11:44.840 also be noted that when you sort of look across 0:11:44.840 --> 0:11:48.920 the banking sector, even the banks that have cut employees 0:11:49.320 --> 0:11:51.679 have sort of tried to keep the AI talent sort 0:11:51.679 --> 0:11:53.440 of relatively steady, if not increasing. 0:11:53.960 --> 0:11:56.760 Talking of talent, of course, within that shareholder letter was 0:11:57.320 --> 0:12:00.720 the demonstration and their commitment to elevating almost exs level 0:12:00.720 --> 0:12:04.120 the discussion around AI, and they mention the importance in 0:12:04.160 --> 0:12:07.240 creating that new position Chief Data and Analytics Officer that 0:12:07.280 --> 0:12:09.880 sits in the operating committee. That person over at JP 0:12:09.960 --> 0:12:13.000 Morgan is indeed Teresa heightens Ritter, who I was lucky 0:12:13.080 --> 0:12:16.000 enough to speak to at an evident event, and it's 0:12:16.320 --> 0:12:19.360 notable that she has been galvanizing the focus on sort 0:12:19.360 --> 0:12:22.920 of from top down ensuring that all talent are online 0:12:22.960 --> 0:12:27.040 with where AI can really bring about a change in productivity, 0:12:27.280 --> 0:12:29.400 Where are they seeing it and drive down in costs? 0:12:29.400 --> 0:12:31.640 Where are they passing this on to the user of 0:12:31.720 --> 0:12:32.720 JP Morgan. 0:12:32.600 --> 0:12:34.400 Yeah, when it comes to well, first of all, when 0:12:34.400 --> 0:12:39.319 it comes to driving the use of AI and where 0:12:39.320 --> 0:12:41.360 you sort of look at the letter as really talking 0:12:41.400 --> 0:12:45.440 about gaining efficiencies and really making the banks sort of 0:12:45.480 --> 0:12:50.400 strong and lean and robust forwithstanding sort of any macro 0:12:51.559 --> 0:12:54.760 challenges on you know, in the future, So looking at 0:12:54.880 --> 0:12:57.800 driving down the costs and bringing up efficiency and bringing 0:12:57.880 --> 0:13:02.320 up productivity, and AI being used to also see where 0:13:02.360 --> 0:13:04.319 you can elevate revenues. 0:13:04.960 --> 0:13:08.000 Is it's whereas that it's sort of. 0:13:07.960 --> 0:13:10.400 In every newk and cranny of the bank looking at 0:13:10.440 --> 0:13:12.600 sort of the ways that it can create that return 0:13:12.360 --> 0:13:16.480 on investment. And then you know, with the AI tools 0:13:16.520 --> 0:13:19.680 that then gets passed on to the customer and you 0:13:19.679 --> 0:13:26.040 know in better customer management, you know experiences if time and. 0:13:27.440 --> 0:13:30.719 To Alexandra, do you think Jamie Diamond has a good 0:13:30.840 --> 0:13:32.720 understanding of artificial intelligence? 0:13:32.760 --> 0:13:33.960 He himself, he is. 0:13:34.040 --> 0:13:36.680 Nick He saw it very early. He knew it was 0:13:36.679 --> 0:13:39.440 going to be very impactful. He was one of the 0:13:39.480 --> 0:13:43.600 first CEOs bank CEOs to go out and and say 0:13:43.640 --> 0:13:46.200 we are changing. We are going to be an AI 0:13:46.640 --> 0:13:49.880 company or an AI first company, where many banks would 0:13:49.880 --> 0:13:51.920 be we're going to be great banks and using AI 0:13:52.040 --> 0:13:54.520 to become a little bit better bank. He was a 0:13:54.600 --> 0:13:57.119 visionary with that. I think he has a good understanding. 0:13:57.200 --> 0:13:59.640 Yes, he's more upbeat about it than he is about Bitcoin. 0:13:59.679 --> 0:14:02.880 Alex and Mussa Visita. It's great to have you, of evident. 0:14:02.960 --> 0:14:06.320 Of course, now EU's top tech regulator, Margareta ves Thea 0:14:06.440 --> 0:14:10.400 says AI could be as disruptive as the atomic bomb. 0:14:11.000 --> 0:14:13.920 The Executive Vice President of the European Commission joined Bloomberg 0:14:13.960 --> 0:14:16.480 earlier today to talk about the current state of AI. 0:14:17.679 --> 0:14:19.760 It's top of mind for us to make sure that 0:14:19.960 --> 0:14:25.760 the market stays competitive. When everything gets fueled by artificial intelligence, 0:14:25.960 --> 0:14:27.440 it's going to change the marketplace. 0:14:28.080 --> 0:14:30.080 Do you have a timeline at all, Commissioner, when we 0:14:30.120 --> 0:14:31.200 could potentially see. 0:14:31.040 --> 0:14:31.760 Some movement on this. 0:14:32.720 --> 0:14:34.320 No, we don't have a fixed timeline. 0:14:34.960 --> 0:14:37.520 Of course, we want to produce results as fast as possible, 0:14:37.560 --> 0:14:41.680 also for the involved companies for their benefit. We'll be 0:14:41.760 --> 0:14:43.560 getting there soon, I think. 0:14:43.880 --> 0:14:46.720 So we're talking about Microsoft and open Ai, but of 0:14:46.760 --> 0:14:48.880 course they're not the only players. To hear, you have 0:14:49.080 --> 0:14:53.520 Amazon actually with a big almost three billion dollar investment 0:14:53.640 --> 0:14:57.080 into Anthropic, which of course competes with OpenAI. 0:14:57.600 --> 0:14:58.360 What do you make of that? 0:14:58.560 --> 0:15:00.200 Is that something that you're looking at as well? 0:15:00.720 --> 0:15:04.360 Well? We will be having, you know, a vigilant, keen 0:15:04.440 --> 0:15:09.720 attention to what is happening in this field. We see 0:15:09.720 --> 0:15:12.520 a lot of entrenched market power when it comes to technology, 0:15:12.960 --> 0:15:16.000 and it's really important that now when we have technology 0:15:16.080 --> 0:15:19.080 which is not just a new technology, it's it's basically 0:15:19.120 --> 0:15:22.400 a new world that we're looking into, that we make 0:15:22.440 --> 0:15:24.920 sure that it's a competitive new world. 0:15:26.000 --> 0:15:29.480 You just recently under the DMA went after three big 0:15:29.800 --> 0:15:32.680 US tech companies, and to be honest, Commissioner, three is 0:15:32.720 --> 0:15:34.960 a crowd. I'm really curious to know which of these 0:15:35.240 --> 0:15:37.080 you are honing in on. And because a lot of 0:15:37.120 --> 0:15:39.320 people really seem to think it's Apple, where the EU 0:15:39.400 --> 0:15:40.400 has a lot of problems with. 0:15:41.360 --> 0:15:44.240 Well, what's the point of the Digital Markets Act is 0:15:44.320 --> 0:15:46.520 to open the market to make sure that that more 0:15:46.600 --> 0:15:49.200 businesses can can get to their customers so customers have 0:15:49.320 --> 0:15:55.320 more choice. So obviously we are looking at getting out 0:15:55.440 --> 0:15:58.160 of self preferencing so that you do not if your 0:15:58.160 --> 0:15:59.880 for instance, have a Google search and you do not 0:16:00.120 --> 0:16:03.040 just get a Google products. And we're looking at how 0:16:03.120 --> 0:16:06.600 businesses can get a real relationship with their customers. So 0:16:06.800 --> 0:16:09.800 to get rid of the ends is staring that we 0:16:09.880 --> 0:16:12.280 see quite a lot and people have choice is they 0:16:12.320 --> 0:16:14.880 want to stay in the Apple payment environment or they 0:16:14.960 --> 0:16:18.560 want to have a direct and sometimes cheaper relationship with 0:16:18.640 --> 0:16:19.600 their service provider. 0:16:20.120 --> 0:16:22.760 Well among those three Apple, Google and Meta, do you 0:16:22.840 --> 0:16:24.160 have a priority target? 0:16:24.680 --> 0:16:27.000 Well, we have opened these five cases because we think 0:16:27.200 --> 0:16:28.480 these are very important. 0:16:29.160 --> 0:16:30.440 We may have more cases in the. 0:16:30.440 --> 0:16:34.280 Pipeline, so we have given retaining orders for what may 0:16:34.320 --> 0:16:39.040 be evidence once we're moving forward. These five cases, they 0:16:39.080 --> 0:16:42.360 are all priority. We think that they are absolutely key 0:16:43.080 --> 0:16:48.160 if our suspicions are confirmed that we get compliance because 0:16:48.200 --> 0:16:50.800 this is this is what opens the market, and that's 0:16:50.840 --> 0:16:53.600 the basic idea. Are the Digital Markets Act for many 0:16:53.640 --> 0:16:55.480 more businesses to have a fair chance to get to 0:16:55.560 --> 0:16:56.240 their customers. 0:17:06.920 --> 0:17:08.760 Okay, time for talking tech and first up. 0:17:08.880 --> 0:17:11.680 KKR is said to be reviewing options of a sale 0:17:11.880 --> 0:17:15.480 or an IPO for BMC software, which could be worth 0:17:15.720 --> 0:17:19.479 as much as fifteen billion dollars including debt. That's according 0:17:19.520 --> 0:17:23.160 to sources. While no final decisions have been made, KKR 0:17:23.280 --> 0:17:26.920 is favoring an IPO of BMC, which filed confidentially last 0:17:27.000 --> 0:17:30.640 year with the SEC for a listing. Plus French chip 0:17:30.720 --> 0:17:34.040 materials company Seutech is said to be considering building a 0:17:34.240 --> 0:17:37.159 factory in the United States, following in the footsteps of 0:17:37.240 --> 0:17:40.719 one of its biggest customers, TSMC, as it expands from 0:17:40.800 --> 0:17:45.159 Arizona to Texas. With government incentives, The consideration would mean 0:17:45.200 --> 0:17:49.720 that Stech would add to its global factory facilities alongside Singapore, Belgium, 0:17:49.720 --> 0:17:53.000 and France, and positions the company for growth outside of 0:17:53.119 --> 0:17:56.760 China and Saudi Arabia and the UAE are racing for 0:17:56.880 --> 0:18:01.440 AI dominance, rushing to build out expensive data center infrastructure 0:18:01.720 --> 0:18:05.040 to help support the technology. Both countries lag behind Western 0:18:05.080 --> 0:18:08.359 Europe in terms of data center capacity, with hopes of 0:18:08.440 --> 0:18:09.800 closing that gap in. 0:18:09.880 --> 0:18:10.520 A few years. 0:18:10.600 --> 0:18:13.840 In a recent report by PwC, it estimated that AI 0:18:13.960 --> 0:18:17.680 will contribute nearly ninety six billion dollars to the UAE 0:18:18.080 --> 0:18:21.359 and one hundred and thirty five billion to Saudi Arabia's 0:18:21.400 --> 0:18:23.200 economy by twenty thirty. 0:18:23.359 --> 0:18:25.359 Caroline That was a great business sweep piece. 0:18:25.440 --> 0:18:28.080 Meanwhile, let's just talk about employees over in an Apple 0:18:28.119 --> 0:18:32.200 store in Shorthills, New Jersey, just petitioned to unionize. It's 0:18:32.200 --> 0:18:33.600 marking the first lutch effort that we've seen it in 0:18:33.640 --> 0:18:36.760 about a year long lull of news around this. Bloomberg's 0:18:36.760 --> 0:18:39.080 Mark German just going to remind us of the context 0:18:39.119 --> 0:18:41.000 when it comes to Apple, because they're not the first 0:18:41.040 --> 0:18:42.440 store that's looking to unionize. 0:18:42.720 --> 0:18:44.240 Yeah, no, that's a great point. 0:18:44.400 --> 0:18:48.280 The Apple unionization efforts really kicked into high gear right 0:18:48.320 --> 0:18:48.480 in the. 0:18:48.480 --> 0:18:51.080 Middle of the COVID pandemic. In twenty twenty two. 0:18:51.600 --> 0:18:54.560 You saw their retail store in the Towson area of 0:18:54.640 --> 0:18:56.919 Maryland petition to unionize. 0:18:56.960 --> 0:18:58.440 They successfully unionized. 0:18:58.480 --> 0:19:02.760 Are now recognize is a unionized Apple retail store. The 0:19:02.920 --> 0:19:07.040 Penn Station store and a mall in Oklahoma City, Oklahoma 0:19:07.240 --> 0:19:09.360 is a unionized store. So those two are the only 0:19:09.400 --> 0:19:11.439 two unionized stores. But there have been a few other 0:19:11.520 --> 0:19:15.520 stores that attempted, one in Saint Louis, Missouri, one in Atlanta, Georgia. 0:19:16.080 --> 0:19:17.040 Those fell apart. 0:19:17.320 --> 0:19:21.000 One of those unions even chastised the union company and 0:19:21.440 --> 0:19:24.160 ended up siding with Apple. Now you have another store 0:19:24.240 --> 0:19:26.639 joining in and that is the Short Hills mall store 0:19:27.280 --> 0:19:30.440 and upscale area in New Jersey. And at this point 0:19:30.520 --> 0:19:33.040 it's still early. They've petitioned, they have one hundred and 0:19:33.040 --> 0:19:35.239 four employees that would be part of the union. There 0:19:35.320 --> 0:19:37.000 still needs to be a vote. They still need to 0:19:37.040 --> 0:19:38.679 get to the bargaining table with Apple. 0:19:39.320 --> 0:19:40.400 But this is the process. 0:19:40.480 --> 0:19:44.200 And so this was a major development petitioning publicly stating hey, 0:19:44.680 --> 0:19:45.960 we are trying to unionize. 0:19:46.040 --> 0:19:48.480 So this is a big deal. The fifth store that 0:19:48.600 --> 0:19:49.960 we know of to attempt. 0:19:50.080 --> 0:19:52.560 They are trying to unionize. This is a path trodden 0:19:52.600 --> 0:19:54.639 by Amazon. You know, Caroline and I've kind of been 0:19:54.680 --> 0:19:57.119 through a similar story arc with that company. 0:19:57.720 --> 0:19:59.760 But I guess the next question. 0:19:59.640 --> 0:20:03.720 At all smart, what is Apple's attitude towards unionization the 0:20:03.800 --> 0:20:05.000