WEBVTT - US Eases Path for Nvidia to Sell H200s to China 0:00:02.520 --> 0:00:13.399 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.440 --> 0:00:17.239 from coast to coast with Caroline Hide in New York 0:00:17.520 --> 0:00:19.480 and Eva Low in Sent Francisco. 0:00:22.200 --> 0:00:25.160 This is Bloomberg Tech coming up. The US combust Department 0:00:25.200 --> 0:00:28.200 moves closer to allowing Nvidia to sell its h two 0:00:28.280 --> 0:00:29.960 hundred AI chips to China. 0:00:30.120 --> 0:00:33.480 Plus robotics startup Skilled Ai just closed a one point 0:00:33.479 --> 0:00:37.080 four billion dollar funding round, tripling its valuation in seven months. 0:00:37.320 --> 0:00:39.360 We'll discuss with the CEO Depact PAPAC. 0:00:40.040 --> 0:00:42.840 And Netflix is working to revise its bid for Warner 0:00:42.880 --> 0:00:45.960 Brothers Discovery, shifting to an all cash offer. 0:00:46.360 --> 0:00:48.559 As you see though those names in the red and 0:00:48.600 --> 0:00:51.320 in general the market on the downside, we still got 0:00:51.360 --> 0:00:54.280 geopolitical anxiety, We've still got earnings coming thick and fast, 0:00:54.320 --> 0:00:56.200 and we've still got and as that one hundred off 0:00:56.360 --> 0:00:59.280 by one and a half percent, not so in the 0:00:59.280 --> 0:01:01.440 world of come on to a search for safety a 0:01:01.520 --> 0:01:03.920 bid as the dollar falls. We see two point eight 0:01:03.920 --> 0:01:06.600 percent higher on the bitcoin rally, so maybe a bit 0:01:06.640 --> 0:01:09.200 of catch up with digital gold where we see spot 0:01:09.240 --> 0:01:11.760 gold and a new record high up seven tens percent. 0:01:12.000 --> 0:01:15.440 Copper all important commodity to our world of AI and 0:01:15.560 --> 0:01:17.920 data center zed we ran a new record high on 0:01:17.959 --> 0:01:20.199 an interday basis. We're up five tens percent just coming 0:01:20.200 --> 0:01:22.520 off of that high on the day. But en it's 0:01:22.600 --> 0:01:24.640 notable and shift of this year. 0:01:25.840 --> 0:01:29.200 Right, rules and requirements are changing in the world of 0:01:29.240 --> 0:01:33.199 AI chips. The US Commerce Department out with clarification which 0:01:33.240 --> 0:01:35.400 impacts in video and it's H two hundred that it 0:01:35.440 --> 0:01:38.360 wants to shift to China, but also impacts AMD as well. 0:01:38.400 --> 0:01:41.119 AMD has been trading all over the place this morning, 0:01:41.160 --> 0:01:43.640 at one point notably higher in the session, but in 0:01:43.720 --> 0:01:46.720 Vidia markedly down now trading at its lowest level in 0:01:46.760 --> 0:01:49.080 around a month. What are these new rules and what 0:01:49.120 --> 0:01:51.920 do they mean and why is this significant? Bloomberg Senior 0:01:51.960 --> 0:01:54.840 Tech editor Mike Shepherd joins us out of DC lay 0:01:54.840 --> 0:01:57.160 out the new rules and requirements for US. But what 0:01:57.200 --> 0:01:59.200 we're saying in the Bloomberg story is this marks a 0:01:59.280 --> 0:02:02.000 significant moment for the companies in their efforts to set 0:02:02.000 --> 0:02:02.600 into China. 0:02:02.640 --> 0:02:07.280 Why well, this is a small but critical bureaucratic step 0:02:07.600 --> 0:02:10.320 that paves the way for Nvidia and and D to 0:02:10.360 --> 0:02:13.920 be able to sell H two hundred incomparable AI chips 0:02:13.960 --> 0:02:16.840 to China. What it does is it now says that 0:02:16.880 --> 0:02:20.680 the US government will review requests for export licenses on 0:02:20.720 --> 0:02:23.680 a case by case basis and move away from the 0:02:23.720 --> 0:02:26.960 past policy of a presumption of denial of any such 0:02:27.000 --> 0:02:30.040 request and that had in the past been really an 0:02:30.080 --> 0:02:34.400 effective export ban. Now these companies can't be there expecting 0:02:34.480 --> 0:02:37.520 a rubber stamp for their requests. The US government is 0:02:37.560 --> 0:02:41.680 laying out some pretty specific requirements. One that the companies 0:02:41.760 --> 0:02:44.799 must show that the exports to China will not create 0:02:44.840 --> 0:02:47.920 a supply shortage here. This is addressing, in a way, 0:02:48.040 --> 0:02:50.560 some of the concerns that lawmakers here in Washington have 0:02:50.639 --> 0:02:53.360 been raising with attempts to pass their own version of 0:02:53.360 --> 0:02:57.640 export controls. Two, they must show that any manufacturing done 0:02:57.680 --> 0:03:02.040 for China must not displace any production capacity intended for 0:03:02.280 --> 0:03:06.600 US customers here. And three, the companies must implement strict 0:03:06.800 --> 0:03:10.080 know your Customer procedures to ensure that these chips and 0:03:10.120 --> 0:03:13.200 the related technology don't get out to unauthorized users. 0:03:13.560 --> 0:03:15.720 It's interesting, Mike, that we are seeing Nvidia down on 0:03:15.760 --> 0:03:19.200 the day AIMD. Do we get any sense of how 0:03:19.280 --> 0:03:21.440 many they might be able to ship, Because it's not 0:03:21.480 --> 0:03:23.760 without its intricacies as you say fifty percent of the 0:03:23.760 --> 0:03:25.079 overall made in the US. 0:03:26.200 --> 0:03:29.640 Well, it is the question of the moment surrounding this 0:03:29.760 --> 0:03:34.720 rule just how this cap that it lays out would function. 0:03:35.280 --> 0:03:39.400 The rule says that the exports to China can go 0:03:39.520 --> 0:03:43.560 more than no more than fifty percent of total product 0:03:43.600 --> 0:03:46.360 here in the US. But does that mean H two 0:03:46.440 --> 0:03:50.000 hundreds produced from this day going forward. If that's the case, 0:03:50.040 --> 0:03:52.360 it would not be a very big set and it 0:03:52.400 --> 0:03:56.640 would mean a far smaller number of exports to China, 0:03:56.720 --> 0:03:59.680 and that would certainly not go anywhere near meeting the 0:04:00.200 --> 0:04:03.840 huge demand that Jensen Wang has said that he is 0:04:03.880 --> 0:04:07.200 getting from Chinese customers. And we have reported that Ali 0:04:07.240 --> 0:04:09.680 Baba and Bite the Answer interested in buying as many 0:04:09.720 --> 0:04:13.000 as two hundred thousand chips each. Now, if we are 0:04:13.040 --> 0:04:17.200 talking about all the H two hundreds produce over all time, 0:04:17.400 --> 0:04:19.840 that would be a much bigger universe and that would 0:04:19.880 --> 0:04:24.360 be a much happier outcome for Nvidia, AMD and their investors. 0:04:24.400 --> 0:04:27.880 So we will have to see exactly how that is interpreted. 0:04:28.040 --> 0:04:29.240 If that gets spelled out. 0:04:29.400 --> 0:04:32.520 Another big question Caro is answered, how quickly the government 0:04:32.600 --> 0:04:36.400 can move to actually process these export requests. Because we 0:04:36.480 --> 0:04:39.520 have been hearing over the past year and longer that 0:04:39.760 --> 0:04:43.760 they are simply running into capacity problems in the bureaucracy 0:04:43.800 --> 0:04:46.680 at commerce and being able to turn these around. 0:04:46.839 --> 0:04:50.840 Bottlenecks throughout the world of AI. Mike Sheperd, thanks so much. 0:04:51.080 --> 0:04:53.440 Let's stick with what this means for Nvidia and more 0:04:53.480 --> 0:04:56.559 broadly for semiconductors. Beth Kennick's with us IO fun lead 0:04:56.600 --> 0:04:59.679 tech analyst. So, is this a fifty billion dollar annual 0:04:59.680 --> 0:05:00.680 revenue opportunity? 0:05:00.839 --> 0:05:02.239 Is China that for Nvidia? 0:05:03.000 --> 0:05:06.719 Hey, Caroline jensen Wok has stated it's a fifty billion 0:05:07.000 --> 0:05:10.360 per year annual opportunity. When we left off, it was 0:05:10.400 --> 0:05:12.880 about five billion a quarter. That's twenty five billion, so 0:05:12.960 --> 0:05:16.520 somewhere between twenty five billion and fifty billion, which really 0:05:16.560 --> 0:05:19.960 means that as we look into analyst estimates, they are 0:05:20.000 --> 0:05:23.000 probably too low. And that has been something from the 0:05:23.080 --> 0:05:26.320 very beginning that we have found Alpha in is that 0:05:26.360 --> 0:05:29.159 analysts are really struggling to wrap their head around the 0:05:29.200 --> 0:05:33.000 opportunity of Nvidia. And now here comes back the aged 0:05:33.080 --> 0:05:36.919 two hundreds, and where my firm is very focused is 0:05:37.040 --> 0:05:40.400 calendar year twenty twenty seven. If you look at these estimates, 0:05:40.600 --> 0:05:43.480 they are too low, as it is let alone if 0:05:43.560 --> 0:05:44.960 China revenue resumes. 0:05:45.320 --> 0:05:49.320 What's really interesting, though, is China's response to all of this. 0:05:49.960 --> 0:05:51.240 You say it's too low. 0:05:51.320 --> 0:05:54.680 How much might be the revenue for Nvidia in China. 0:05:54.720 --> 0:05:56.760 But at the same time we understand. 0:05:56.320 --> 0:05:59.720 That deep seats driving new models with seeing them use 0:06:00.360 --> 0:06:02.880 what they have in the different method that maybe Ali 0:06:02.960 --> 0:06:04.560 Barbara and why do you don't need those two hundred 0:06:04.560 --> 0:06:06.919 thousand that they've already put off efforts and offers in 0:06:07.000 --> 0:06:08.800 for what do you make of the way in which 0:06:08.880 --> 0:06:11.240 China is going to pivot to domestic chips? 0:06:12.000 --> 0:06:14.839 I would argue that right now the number I had 0:06:14.920 --> 0:06:17.400 was about two million, h two hundreds and there's only 0:06:17.440 --> 0:06:22.040 about seven hundred thousand available, which means that once again 0:06:22.080 --> 0:06:24.920 in videos oversubscribed. I have been asked before, who is 0:06:24.960 --> 0:06:27.800 the next in Vidia to something like Huawei, you know, 0:06:28.000 --> 0:06:30.919 is it Google's TPUs? And the answer is the next 0:06:30.960 --> 0:06:35.320 in Vidia is in video. They are extremely hard to disrupt, 0:06:35.720 --> 0:06:40.800 and that goes for China or even United States competitors BEV. 0:06:40.880 --> 0:06:43.359 Taking into account that the news story that Mike Shephard 0:06:43.440 --> 0:06:46.640 just brought us, Jensen Wong told us at CS that 0:06:46.720 --> 0:06:50.039 the five hundred billion dollar forecast for five fiscal quarters. 0:06:50.080 --> 0:06:53.760 It includes this one for Blackwell Rubin could get bigger 0:06:54.320 --> 0:06:56.919 because they could factor into H two hundred sales in 0:06:56.960 --> 0:06:59.400 twenty six. I know twenty seven to a year, but 0:06:59.440 --> 0:07:02.200 if you model for that little update that the Jensen 0:07:02.240 --> 0:07:02.880 one gave. 0:07:04.080 --> 0:07:07.920 Yes, so right now the analyst estimates did actually catch up. 0:07:07.920 --> 0:07:11.840 They're about three to twenty billion this calendar year. Let's 0:07:11.880 --> 0:07:14.840 just go with twenty twenty six. I want to really 0:07:14.880 --> 0:07:18.200 emphasize that its next calendar year that we're going to 0:07:18.240 --> 0:07:21.480 start to see analyst estimates too low. That is where 0:07:21.480 --> 0:07:24.320 the alpha is at right now, and it only takes 0:07:24.360 --> 0:07:27.280 one or two quarters for us to really see Nvidia's 0:07:27.320 --> 0:07:32.480 price movement from all of the all of the momentum 0:07:32.520 --> 0:07:35.320 we're seeing not only from Blackwell Ultra, but then we've 0:07:35.320 --> 0:07:37.960 got Vera Rubin second half of this year. Now we 0:07:38.040 --> 0:07:41.840 have the H two hundreds coming back. Where that falls 0:07:41.880 --> 0:07:45.240 specifically in what quarter matters less to me, and what 0:07:45.320 --> 0:07:47.920 matters more is that those analyst estimates are far too low. 0:07:48.840 --> 0:07:52.000 Bes The big story in global markets this morning is 0:07:52.320 --> 0:07:56.960 a blistering rally in metals, particularly copper copper, as S 0:07:57.000 --> 0:08:01.320 and P Global wrote January eight foundational to the expanding 0:08:01.440 --> 0:08:04.840 electricity supply that will power the data center build out, 0:08:05.240 --> 0:08:07.760 and it's now a big growth area in that market. 0:08:08.200 --> 0:08:10.840 How worried are you about that copper in the supply 0:08:11.000 --> 0:08:13.720 chain and how it relates to the power needs of 0:08:13.760 --> 0:08:16.400 the data centers that Nvidia's chips go into. 0:08:17.040 --> 0:08:21.240 These are excellent questions, and across the board resources when 0:08:21.280 --> 0:08:24.520 it comes to this data center expansion are extremely stretched, 0:08:25.040 --> 0:08:29.040 especially anything that supports the electrical grids, such as copper. 0:08:30.000 --> 0:08:33.000 What I would really emphasize is those alternative sources of 0:08:33.280 --> 0:08:36.440 energy is a great way to position going into twenty 0:08:36.520 --> 0:08:39.880 twenty six. One thing to my firm has dug up 0:08:40.000 --> 0:08:41.840 is that in order for us to get to VERA, 0:08:42.040 --> 0:08:45.440 Ruben and then Reuben Ultra power has to precede that 0:08:45.840 --> 0:08:48.439 we have to really get this power to these data 0:08:48.440 --> 0:08:52.000 centers before those systems can really ship in volume and 0:08:52.040 --> 0:08:57.360 be installed. Things like net gas, even solid oxide fuel cells, 0:08:57.720 --> 0:09:01.680 those that do not need great dependency on the electrical 0:09:01.720 --> 0:09:04.679 grid is a wonderful way to position, and copper surging 0:09:04.720 --> 0:09:06.160 today is a reminder of that. 0:09:06.679 --> 0:09:09.120 What's interesting is we've hit in video. 0:09:09.200 --> 0:09:12.600 We're talking about the supply chain therein we're also getting 0:09:12.640 --> 0:09:14.040 the idea that CPUs. 0:09:13.600 --> 0:09:14.560 As well at s US as well. 0:09:14.600 --> 0:09:16.160 And you just think about the moves that we've seen 0:09:16.240 --> 0:09:19.760 yesterday today in Intel, I mean, where do you think 0:09:20.240 --> 0:09:22.280 the glutts or the bottlenecks are really going to be 0:09:22.320 --> 0:09:22.679 hitting hard? 0:09:22.720 --> 0:09:22.920 We are? 0:09:23.559 --> 0:09:25.920 I mean, analysts keep Bank saying Intel and AMDA basically 0:09:25.960 --> 0:09:28.080 sold out for twenty twenty six on the CPU service 0:09:28.080 --> 0:09:30.040 side exactly. 0:09:30.080 --> 0:09:32.719 And what's even more interesting is that AMD was up 0:09:32.800 --> 0:09:35.640 more or last year than Nvidia, and they are such 0:09:35.640 --> 0:09:39.040 a strong CPU player as well as Intel. There are 0:09:39.040 --> 0:09:42.960 many bottlenecks. Caroline networking is another one that comes to mind. 0:09:43.559 --> 0:09:46.720 Of course, energy we just spoke about. Just keep in 0:09:46.760 --> 0:09:50.160 mind that it's not just GPUs, but there's almost an 0:09:50.200 --> 0:09:53.160 equal amount of money being spent on all of the components, 0:09:53.320 --> 0:09:56.800 all of the networking, all of the power, and we 0:09:56.920 --> 0:10:00.640 are no longer compute constraint, We're no longer GPU constraint. 0:10:00.920 --> 0:10:03.400 It really is becoming a power problem and a networking 0:10:03.400 --> 0:10:06.040 problem that needs to be solved, especially as we move 0:10:06.080 --> 0:10:08.960 into the inference market, which is only going to require 0:10:09.280 --> 0:10:13.880 more memory, more bandwidth, less latency, and more and more energy. 0:10:14.920 --> 0:10:18.200 Beth do AMD and Intel just accept that it's the 0:10:18.240 --> 0:10:21.319 CPU market where they can do battle and just let 0:10:21.360 --> 0:10:24.600 the accelertor market go to Nvidia and other specialists. 0:10:25.400 --> 0:10:27.120 No, I do not believe that will be the outcome. 0:10:27.240 --> 0:10:31.640 I think AMD is a strong contender, a strong number two, 0:10:32.240 --> 0:10:35.240 especially in the second half of this year. They've really 0:10:35.280 --> 0:10:38.679 been preparing to bring the rack scale architecture to market, 0:10:38.880 --> 0:10:42.640 which is called Helios and ED what was I've covered 0:10:42.679 --> 0:10:45.439 AMD very thoroughly and we could get into the specs 0:10:45.480 --> 0:10:46.120 all day long. 0:10:46.400 --> 0:10:48.600 But open AI giving them. 0:10:48.480 --> 0:10:51.640 That six gigawad deal is a massive nod. I mean 0:10:51.640 --> 0:10:54.520 that is a big nod that AMD is a contender 0:10:54.800 --> 0:10:56.680 from the leading R and D firm. 0:10:57.480 --> 0:11:00.280 Helios, AMD's first rack scale solution, but then in the 0:11:00.280 --> 0:11:03.120 world's first two nanimeter chip inside, which they talked up 0:11:03.120 --> 0:11:05.800 in our interview last week. Be f Kindig the IO Fund. 0:11:05.800 --> 0:11:08.120 Great to have you back on Bloomberg Tech. Thank you 0:11:08.240 --> 0:11:12.280 very much. Now coming up, anger grows over sexually explicit, 0:11:12.480 --> 0:11:17.480 non consensual AI generated images on x We have the latest. 0:11:17.960 --> 0:11:18.920 This is Bloomberg Tech. 0:11:30.080 --> 0:11:33.480 The Supreme Court still hasn't ruled on challenges to President 0:11:33.480 --> 0:11:36.560 Trump's tariffs, leaving the world to wait until at least 0:11:36.640 --> 0:11:39.280 next week to learn the fate of visits signature economic 0:11:39.280 --> 0:11:42.160 policy from a massurveillance. Co host Amriy Horden joins us 0:11:42.200 --> 0:11:45.240 right here for more. So we delay once again, and 0:11:45.280 --> 0:11:47.720 that timing could be awkward. It could be awkward. So 0:11:47.760 --> 0:11:49.160 Supreme Court punts it once again. 0:11:49.200 --> 0:11:50.760 They do not come out with the decision on whether 0:11:50.840 --> 0:11:53.280 or not the majority of Actually a lot of this 0:11:53.400 --> 0:11:55.960 terriphone venue we're bringing in into the United States, more 0:11:56.000 --> 0:12:00.679 than seventies percent, is tethered to the president using aiber flexible, 0:12:00.720 --> 0:12:02.920 a blunt tool that he has used since he came 0:12:02.960 --> 0:12:05.360 back into office. And why it could be so awkward 0:12:05.400 --> 0:12:07.280 is because the President will be in Davos next week 0:12:07.280 --> 0:12:09.520 and he's going to be meeting with global leaders, the 0:12:09.559 --> 0:12:15.240 world elite. Last year he joined on remote really Lambasstard, 0:12:15.360 --> 0:12:19.000 the global elite. And at this point, potentially we could 0:12:19.000 --> 0:12:22.199 get the decision next Tuesday or Wednesday, because that's when the. 0:12:22.240 --> 0:12:23.280 Justices will be meeting again. 0:12:23.440 --> 0:12:25.920 That's when potentially we can get the decision and he 0:12:26.200 --> 0:12:29.760 could potentially be facing a Supreme Court saying you cannot 0:12:29.840 --> 0:12:33.200 use that legal authority while he's talking to all these 0:12:33.240 --> 0:12:35.199 countries that he already did trade deals with. 0:12:36.480 --> 0:12:39.880 Bloomberg zamree, Howden, thank you very much. Another top story, 0:12:39.960 --> 0:12:43.720 the US Senate unanimously passed a bill allowing victims of 0:12:43.800 --> 0:12:48.160 sexually explicit AI images to sue the creators of that content. 0:12:48.520 --> 0:12:51.040 The move is in response to growing public anger after 0:12:51.040 --> 0:12:54.640 Bloomberg reported the Lelon musk x has become a top 0:12:54.720 --> 0:12:58.000 site for generating pictures of people who have been non 0:12:58.040 --> 0:13:01.680 consensually undressed by a must post it on x that 0:13:01.720 --> 0:13:05.960 he wasn't aware of any naked underage images generated by Grock. 0:13:06.320 --> 0:13:10.640 That's Xai's generative AI tool. Let's bring in Bloomberg's Emily Burnbaum, 0:13:10.800 --> 0:13:15.840 who covers corporate lobbying government. The Defiance Act confers on 0:13:16.000 --> 0:13:21.719 American citizens a civil right to sue, take that information 0:13:21.960 --> 0:13:23.920 and give the rest of the details. Because that's the 0:13:23.960 --> 0:13:25.679 bit that's new here. 0:13:26.520 --> 0:13:31.120 Yes, that's exactly what it does. It essentially empowers victims 0:13:31.320 --> 0:13:34.960 of this non consensual deep fake technology, people who have 0:13:35.040 --> 0:13:38.480 been non consensually undressed by this AI tool, and it 0:13:38.520 --> 0:13:42.080 allows them to sue the people responsible for posting that. 0:13:42.480 --> 0:13:45.920 And it's a companion to a bill, to a bill 0:13:45.960 --> 0:13:48.640 that was signed into law last year by President Trump 0:13:49.400 --> 0:13:53.679 that creates criminal penalties for distributing that kind of content. 0:13:54.240 --> 0:13:58.440 Ah, it didn't go through the House last time, the 0:13:58.480 --> 0:14:02.160 Defiance Act, whereas take Down did, And why would this 0:14:02.240 --> 0:14:03.439 time be any different? 0:14:03.640 --> 0:14:06.040 Is the pushback becoming enough. 0:14:05.840 --> 0:14:08.959 Because thus far, all we've really seen is the Department 0:14:09.000 --> 0:14:12.960 of Defense put groquai within its military system instead of 0:14:12.960 --> 0:14:16.320 pushing back on this being something that Grocco X needs 0:14:16.360 --> 0:14:19.680 to camp down in some way, that's true. 0:14:20.240 --> 0:14:23.280 There definitely is more of an appetite in Congress to 0:14:23.520 --> 0:14:28.560 pass this legislation. There have been six new co sponsors 0:14:28.560 --> 0:14:30.760 that have come on board since the beginning of the year. 0:14:31.560 --> 0:14:36.440 I think that the issue of non consensual AI generated 0:14:36.520 --> 0:14:41.720 images has become so vivid to lawmakers. Many of them, 0:14:42.200 --> 0:14:45.280 like Alexandria Ocasio Cortez, are themselves the victims of this. 0:14:45.520 --> 0:14:48.040 So I think the appetite has really broadened this year. 0:14:49.120 --> 0:14:53.480 Emily, where does the company X and the platform X 0:14:53.520 --> 0:14:57.840 fit into this in a citizen's right to sue and 0:14:57.880 --> 0:14:59.480 those that distribute the content. 0:15:01.080 --> 0:15:05.000 So the Defiance Act, which passed the Sunate this week, 0:15:05.160 --> 0:15:09.440 that probably would not impact GROC, that impacts the people 0:15:09.480 --> 0:15:12.920 who are responsible for distributing the images. But there is 0:15:12.960 --> 0:15:15.000 a lot of conversation right now about whether the Take 0:15:15.040 --> 0:15:19.840 It Down Act would empower Attorney's General to sue Grock 0:15:20.120 --> 0:15:26.520 Xai Elon Musk over some level of responsibility for you know, 0:15:26.680 --> 0:15:29.160 thousands of these images proliferating every hour. 0:15:29.960 --> 0:15:31.840 So far, no Attorney's. 0:15:31.360 --> 0:15:35.560 General have taken that up, but it's definitely under serious consideration. 0:15:35.640 --> 0:15:38.360 Certainly something that maybe Malaysia has been putting forward about 0:15:38.360 --> 0:15:41.400 whether or not it's Xai's responsibility in some way. Blueing 0:15:41.400 --> 0:15:44.640 Magzemine van Bound, fantastic reporting, thank you very much. Indeed, 0:15:45.080 --> 0:15:48.920 not coming up. ABMB has a new chief technology officer. 0:15:49.040 --> 0:15:50.840 We'll hear about his plans for the short term mental 0:15:50.840 --> 0:15:52.080 company that's next is. 0:15:52.000 --> 0:15:52.720 A body meg Tech. 0:16:05.240 --> 0:16:08.480 I'm extremely excited, like Brian said, to bring craft to 0:16:08.960 --> 0:16:12.480 the art of deploying AI first features and products. So 0:16:13.320 --> 0:16:15.400 I hope to be able to surprise the world with 0:16:15.520 --> 0:16:18.240 really beautiful features that they're going to love using every day. 0:16:19.640 --> 0:16:23.720 That was Airbnb's new CTO, Armadal Dala, weighing in on 0:16:23.760 --> 0:16:26.720 the short term rental platforms AI efforts. Let's get more 0:16:26.880 --> 0:16:29.560 wherever and Latterly Lung, who spoke with our Dala and 0:16:29.640 --> 0:16:32.960 Airbnb CEO Brian Chesky. I think an interesting base start 0:16:33.000 --> 0:16:35.400 is what is Airbnb trying to solve for here by 0:16:35.400 --> 0:16:37.200 bringing in a new CTO. What is it they want 0:16:37.200 --> 0:16:38.680 to change about the platform. 0:16:39.080 --> 0:16:41.600 So after a few years of sort of working on 0:16:41.680 --> 0:16:45.000 the plumbing of Airmb's app, like vamping the app, they 0:16:45.000 --> 0:16:48.480 are ready to take it forward, adding AI across the app, 0:16:48.560 --> 0:16:51.520 including customer service with which they did last year, and 0:16:51.560 --> 0:16:53.360 now they're going to do more with search as well, 0:16:53.400 --> 0:16:56.840 like letting people discover listings and also cross markets who 0:16:56.840 --> 0:17:00.240 have their new services like tours and experiences going forward. 0:17:00.720 --> 0:17:02.760 And I think you sort of put that exact question 0:17:02.800 --> 0:17:04.800 to Brancheski himself. Let's just take a listen to how 0:17:04.840 --> 0:17:08.120 he responded as to why they're pivoting and focusing all 0:17:08.119 --> 0:17:09.760 in on AI at this moment, and take a listen. 0:17:10.720 --> 0:17:13.760 We are at the beginning of this incredibly exciting technological 0:17:13.800 --> 0:17:16.600 transformation with AI. It's going to be a journey. And 0:17:16.680 --> 0:17:19.320 I couldn't be more excited about Ahmed because he's one 0:17:19.320 --> 0:17:21.480 of the leading AI experts in the world, but he 0:17:21.560 --> 0:17:24.240 also brings a sense of craft Airbnb, something we're really 0:17:24.280 --> 0:17:26.120 known for. And I think what you're going to see 0:17:26.119 --> 0:17:29.640 in Airbnb is not only AI search, but a very 0:17:29.680 --> 0:17:32.520 personalized AI experience where I think we're going to bring 0:17:32.600 --> 0:17:36.400 great design sensibility into the experience of Airbnb. 0:17:38.000 --> 0:17:40.879 Let's talk a little bit about how they're talking of 0:17:40.880 --> 0:17:44.159 the narrative of change because they've said farewell to the 0:17:44.160 --> 0:17:47.160 previous CTO who's there for about seven years, and brought 0:17:47.200 --> 0:17:49.920 in this expert from Meta. So who do they say 0:17:49.920 --> 0:17:52.320 you farewell to and why is this Meta executed the 0:17:52.359 --> 0:17:52.879 best place? 0:17:54.280 --> 0:17:57.760 So Aribalo, the previous CTO came in during our time 0:17:57.800 --> 0:18:01.560 when Airbnb was going through hypergrowth. There was seven more 0:18:01.560 --> 0:18:04.320 than seven years ago. And now Airbnb is sort of, 0:18:04.760 --> 0:18:07.919 as Cheskey said, going through a technological revolution of you 0:18:07.960 --> 0:18:11.480 know lms and chat agents, and now Airbnb sort of 0:18:11.520 --> 0:18:13.840 wants to use sort of the unique data they have 0:18:13.960 --> 0:18:17.399 on the platform to differentiate itself from other you know, 0:18:17.560 --> 0:18:21.880 chatbots to provide better recommendations to customers on their platform. 0:18:22.440 --> 0:18:26.080 Abnb the company who stock growse about three percent last year, 0:18:26.600 --> 0:18:28.560 down a couple of percent so far this year. 0:18:29.000 --> 0:18:30.200 And Cheski was one of those. 0:18:30.040 --> 0:18:34.800 People that was the early vocal behind founder mode it. 0:18:34.880 --> 0:18:36.920 What's the health of Airbnb right now. Is this them 0:18:36.960 --> 0:18:39.280 saying we've got to do something to re accelerate. 0:18:39.560 --> 0:18:44.040 Yeah, Brian was not satisfied with the below ten percent 0:18:44.119 --> 0:18:46.520 growth rate we've seen last year, and so he's been 0:18:46.640 --> 0:18:51.840 very active in wanting to pilot more businesses for this year. 0:18:52.240 --> 0:18:55.880 They're piloting boutique hotels and server cities, and they're trying 0:18:55.920 --> 0:18:59.359 to add grocery delivery for people to pre stock their 0:18:59.440 --> 0:19:01.960 kitchens before or are they check in. So they're trying 0:19:01.960 --> 0:19:04.240 to get their growth free BACKRUP as sort of the 0:19:04.359 --> 0:19:06.200 core rental service for chors. 0:19:06.560 --> 0:19:06.720 Now. 0:19:06.760 --> 0:19:08.400 So you've also got a story about how the chief 0:19:08.400 --> 0:19:11.120 information officer has departed after the CTO shakeup. 0:19:11.359 --> 0:19:13.360 Is there more executive leadership changes to come? 0:19:14.600 --> 0:19:16.800 Yeah, so there would be. They're still looking for the 0:19:16.920 --> 0:19:20.960 new CIO. We can expect that to come in in 0:19:21.000 --> 0:19:23.119 the months in the year ahead. 0:19:23.600 --> 0:19:26.480 Most Natalie Lung, thank you very much. Indeed, let's turn 0:19:26.480 --> 0:19:30.040 out attention to entertainment now. Netflix is working to revise 0:19:30.160 --> 0:19:33.439 it's been for Warner Brothers Discovery, potentially shifting to an 0:19:33.440 --> 0:19:36.240 all cash offer, according to sources. Now the moves aimed 0:19:36.240 --> 0:19:38.640 at speeding up a deal that lookers face pushback from 0:19:38.720 --> 0:19:43.360 Washington and competition from rival, bit of Paramounts guidance for more, Let's. 0:19:43.200 --> 0:19:43.760 Get to the new most. 0:19:43.800 --> 0:19:47.159 Lucas Shaw, who covers media and entertainment, hit this story 0:19:47.160 --> 0:19:51.400 hard and Lucas, I mean the all cash narrative. Why 0:19:51.480 --> 0:19:53.880 is that important? Why would that be the winning formula 0:19:53.920 --> 0:19:54.520 for Netflix? 0:19:56.080 --> 0:20:00.320 Because investors like cash now versus stock, and that's that 0:20:00.359 --> 0:20:01.480 they could sell later. 0:20:01.600 --> 0:20:01.760 Right. 0:20:02.440 --> 0:20:05.440 One of the knocks against the Netflix deal as perpetuated 0:20:05.440 --> 0:20:08.240 at least by by Paramounts guidance. The rival bidder has 0:20:08.240 --> 0:20:11.159 been that Paramount's deal is all cash, and that Netflix 0:20:11.240 --> 0:20:14.600 deal contains you know, between four and five dollars a. 0:20:14.640 --> 0:20:15.440 Share of stock. 0:20:15.520 --> 0:20:17.960 Now, Netflix stock is pretty valuable, something that you think 0:20:18.000 --> 0:20:20.320 people would want to have, but most people would rather 0:20:20.400 --> 0:20:23.080 just take the cash now and get paid. And so 0:20:23.800 --> 0:20:26.720 that I think Netflix hopes will accelerate on many fronts. 0:20:26.720 --> 0:20:26.760 It. 0:20:27.160 --> 0:20:30.120 You know, it'll assuage any shareholder concerns about their bid 0:20:30.200 --> 0:20:34.440 and also eliminate any potential complexities as they continue to 0:20:34.920 --> 0:20:35.919 negotiate and pursue it. 0:20:37.119 --> 0:20:39.359 Lucas, when we were reporting this out, you know, the 0:20:39.440 --> 0:20:42.359 Netflix response and the tit for tat, you know, Paramounts 0:20:42.359 --> 0:20:44.760 suing earlier this week and nominated our It's to the board. 0:20:45.040 --> 0:20:47.600 Do you get the sense that Netflix think this will work, 0:20:48.440 --> 0:20:51.320 that they now are back in sort of the lead 0:20:51.359 --> 0:20:53.240 in a tight race for the assets. 0:20:54.280 --> 0:20:54.879 Well, I don't. 0:20:55.280 --> 0:20:57.040 I think if you were to talk to the people 0:20:57.040 --> 0:20:59.600 at Netflix, they've never felt they were out of the lead, 0:20:59.720 --> 0:21:03.639 right know, they are obviously facing a stiff challenge from Paramount, 0:21:04.119 --> 0:21:07.840 but they're the ones who have an approved deal, and 0:21:07.880 --> 0:21:11.760 they have yet to see kind of some they have 0:21:11.840 --> 0:21:14.160 yet to see shareholders say and masks we don't want 0:21:14.160 --> 0:21:15.879 the Netflix deal. They have yet to see the federal 0:21:15.920 --> 0:21:18.000 government say we're going to block this deal. There are 0:21:18.119 --> 0:21:21.080 certainly some kind of blinking yellow lights, but I don't 0:21:21.080 --> 0:21:23.880