1 00:00:02,600 --> 00:00:11,640 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,560 --> 00:00:13,240 Speaker 2: From the Heart where Innovation, money and power Collie in 3 00:00:13,360 --> 00:00:14,800 Speaker 2: Silicon Valley, nbon. 4 00:00:15,200 --> 00:00:19,480 Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed lud Love. 5 00:00:33,240 --> 00:00:34,720 Speaker 4: Live from New York and San Francisco. 6 00:00:34,920 --> 00:00:40,080 Speaker 5: This is Bloomberg Technology coming up full chip coverage as TSMC. 7 00:00:39,720 --> 00:00:42,720 Speaker 4: Earnings jump, but China risks remain for the sector. 8 00:00:43,520 --> 00:00:46,600 Speaker 6: Plus Apple makes plans to license more Hollywood films for 9 00:00:46,680 --> 00:00:47,520 Speaker 6: its streaming push. 10 00:00:47,680 --> 00:00:50,120 Speaker 5: And Bloomberg Intelligence breaks down the odds of a TikTok 11 00:00:50,159 --> 00:00:52,040 Speaker 5: van under a Trump presidency. 12 00:00:52,440 --> 00:00:53,880 Speaker 4: Who bring you all the details? 13 00:00:54,000 --> 00:00:56,560 Speaker 5: We want to talk about the China risks with the 14 00:00:56,560 --> 00:00:59,480 Speaker 5: Biden administration as he's mentioned, and really considering more trade 15 00:00:59,480 --> 00:01:03,840 Speaker 5: restrictions Bloomberg Intelligence, and with a note saying this along 16 00:01:03,920 --> 00:01:07,039 Speaker 5: with Donald Trump's own comments on defending Taiwan or not 17 00:01:07,080 --> 00:01:10,040 Speaker 5: defending them earlier this week in a Bloomberg Business Week interview, 18 00:01:10,400 --> 00:01:14,639 Speaker 5: could be quote beneficial for regional manufacturers in the US. 19 00:01:14,840 --> 00:01:19,600 Speaker 5: I'm talking Intel, Global Founderies, Micron, Bloomberg Intelligence analysts cringe 20 00:01:19,640 --> 00:01:23,000 Speaker 5: and Savanni's with us. You altered the note and just 21 00:01:23,040 --> 00:01:26,240 Speaker 5: dissect for us a moment how much geopolitical risks do 22 00:01:26,240 --> 00:01:28,840 Speaker 5: you think there is affecting some of these names that 23 00:01:28,920 --> 00:01:30,440 Speaker 5: do have exposure to China. 24 00:01:31,760 --> 00:01:34,119 Speaker 7: Yeah, at this point, it's more of a headline risk 25 00:01:34,240 --> 00:01:37,679 Speaker 7: rather than a fundamental risk. Right, It's speculative at best, 26 00:01:37,720 --> 00:01:40,840 Speaker 7: so we don't know how much to quantify, but for context, 27 00:01:40,880 --> 00:01:44,920 Speaker 7: it's important to understand the run that socks has had. 28 00:01:45,040 --> 00:01:48,960 Speaker 7: Right especially these high flying AI names. It seems like 29 00:01:49,120 --> 00:01:52,720 Speaker 7: almost nothing but positivity has been priced in. So I 30 00:01:52,760 --> 00:01:56,200 Speaker 7: think this sort of any sort of roadblock, even if 31 00:01:56,280 --> 00:01:59,320 Speaker 7: not quantifiable, sort of seems like a good opportunity for 32 00:01:59,360 --> 00:02:01,960 Speaker 7: folks to lock in their profits and sort of the 33 00:02:02,000 --> 00:02:05,800 Speaker 7: valuations to take a breeder. Beyond that, the China risks 34 00:02:05,840 --> 00:02:07,920 Speaker 7: have been there for the last two years. We have 35 00:02:07,960 --> 00:02:11,760 Speaker 7: seen sanctions getting increased over time, but when you look 36 00:02:11,800 --> 00:02:15,040 Speaker 7: at impact in terms of fundamentals and revenues, it's mainly 37 00:02:15,080 --> 00:02:17,440 Speaker 7: been one or two key large players that have seen 38 00:02:17,440 --> 00:02:20,680 Speaker 7: the impact. So again, the response to this news, with 39 00:02:20,840 --> 00:02:24,280 Speaker 7: the most of the sector reacting like that, seems more 40 00:02:24,280 --> 00:02:25,519 Speaker 7: of a again, headline risk. 41 00:02:25,560 --> 00:02:26,200 Speaker 8: At this part. 42 00:02:27,360 --> 00:02:30,040 Speaker 6: You notice in your research that these are headwinds for 43 00:02:30,200 --> 00:02:33,240 Speaker 6: fab less names. But the other name you linger on 44 00:02:33,320 --> 00:02:35,800 Speaker 6: is of course Intel, and I think yesterday in the program, 45 00:02:35,880 --> 00:02:38,679 Speaker 6: we were trying to understand the logic here. Intel is 46 00:02:38,720 --> 00:02:42,000 Speaker 6: trying to grow its own business of being a contract 47 00:02:42,000 --> 00:02:46,280 Speaker 6: manufacturer for third parties. If something happens politically or in China, 48 00:02:46,400 --> 00:02:51,679 Speaker 6: in Taiwan, is Intel the only alternative, the only name 49 00:02:51,720 --> 00:02:54,040 Speaker 6: that would benefit directly in that line of business. 50 00:02:54,040 --> 00:02:57,600 Speaker 7: Congen So you if to divide the manufacturing world into 51 00:02:57,720 --> 00:03:01,000 Speaker 7: the leading edge, which is really where they're chips and 52 00:03:01,040 --> 00:03:04,080 Speaker 7: smartphone and TC chips get manufactured, and the lagging edge. 53 00:03:05,040 --> 00:03:08,480 Speaker 7: You know, in the leading edge, there's really tree names 54 00:03:08,520 --> 00:03:13,280 Speaker 7: that come to top TSMC, Samsung and in Intel, and Intel's 55 00:03:13,320 --> 00:03:16,560 Speaker 7: main push has been tatered around to really leverage this 56 00:03:16,680 --> 00:03:19,040 Speaker 7: risk point that hey, if something were to happen in 57 00:03:19,080 --> 00:03:22,799 Speaker 7: Taiwan or TSMC, we would be sort of your insourcing 58 00:03:23,440 --> 00:03:26,840 Speaker 7: champion here in the US. So definitely, you know, such 59 00:03:26,960 --> 00:03:30,280 Speaker 7: news do benefit them. Again, this is not something quick. 60 00:03:30,400 --> 00:03:33,240 Speaker 7: You cannot turn off TSMC tonight and turn on and 61 00:03:33,280 --> 00:03:35,520 Speaker 7: take all the capacity at Intel. But in the long 62 00:03:35,600 --> 00:03:39,120 Speaker 7: term still increases you know, if in your risk models 63 00:03:39,240 --> 00:03:43,080 Speaker 7: still makes you favor regional manufacturers like Intel in global foundry, 64 00:03:43,240 --> 00:03:45,520 Speaker 7: and speaking of the lagging edge, I think we have 65 00:03:45,600 --> 00:03:48,080 Speaker 7: a lot more options in that area because a lot 66 00:03:48,120 --> 00:03:52,360 Speaker 7: of US integrated device manufacturers have their own lagging edge capacity, 67 00:03:52,600 --> 00:03:55,440 Speaker 7: so there's less reliance on Taiwan in that end, But yes, 68 00:03:55,440 --> 00:03:58,680 Speaker 7: in the leading edge intel in terms of US and Europe. 69 00:03:59,120 --> 00:04:01,440 Speaker 6: I asked that question because for the second time this week, 70 00:04:01,560 --> 00:04:04,240 Speaker 6: intels up more than five percent in a session where 71 00:04:04,600 --> 00:04:07,160 Speaker 6: some of the other names TSMC being one are under pressure. 72 00:04:07,200 --> 00:04:10,760 Speaker 6: Bloomberg Intelligence analyst Kunjan Savanni, thank you. Let's bring in 73 00:04:10,800 --> 00:04:14,240 Speaker 6: Amy Sellko, now principal analyst at Albright Stonebridge Group, and 74 00:04:14,320 --> 00:04:18,240 Speaker 6: let's discuss the impact of potential trade cubs, expansion of 75 00:04:18,279 --> 00:04:22,000 Speaker 6: trade cubs, and Trump on Chinese American relations. I mean, Amy, 76 00:04:22,400 --> 00:04:26,000 Speaker 6: the chip sector is absolutely in focus right now. Just 77 00:04:26,080 --> 00:04:29,080 Speaker 6: respond to what you heard from Kunjendre on their thesis 78 00:04:29,240 --> 00:04:33,039 Speaker 6: on geopolitics and who may or may not benefit in 79 00:04:33,080 --> 00:04:34,120 Speaker 6: a Trump presidency. 80 00:04:35,400 --> 00:04:39,279 Speaker 9: Well, I think it is really early to say, and 81 00:04:39,320 --> 00:04:42,720 Speaker 9: I think that's why we're seeing so much volatility because 82 00:04:43,200 --> 00:04:45,920 Speaker 9: while we have a sense from Trump himself, from his 83 00:04:46,080 --> 00:04:49,960 Speaker 9: vice president, from his top advisors how he looks at 84 00:04:50,080 --> 00:04:54,839 Speaker 9: competition with China, the prescriptions that he will use really 85 00:04:54,960 --> 00:04:58,520 Speaker 9: are unclear to date, based on what the Biden administration 86 00:04:58,720 --> 00:05:02,360 Speaker 9: is doing. We are seeing the potential for more curves 87 00:05:02,720 --> 00:05:09,040 Speaker 9: on American and non American semiconductor products, particularly hardware, going 88 00:05:09,080 --> 00:05:14,040 Speaker 9: to support China in increasing its focus on technology self 89 00:05:14,040 --> 00:05:17,680 Speaker 9: reliance a key theme coming out of the Third Planum. 90 00:05:18,000 --> 00:05:20,359 Speaker 9: That is what we're hearing that Shi Jinping is saying. 91 00:05:20,400 --> 00:05:24,680 Speaker 9: We need more indigenous innovation. We need technology to help 92 00:05:24,760 --> 00:05:28,919 Speaker 9: us build our own semiconductor industry because we cannot rely 93 00:05:29,400 --> 00:05:34,719 Speaker 9: on an uncertain geopolitical landscape, given uncertainty in the United 94 00:05:34,720 --> 00:05:38,640 Speaker 9: States and in Europe to key suppliers and of course 95 00:05:38,720 --> 00:05:43,000 Speaker 9: Japan of this technology hardware to China. As a result 96 00:05:43,040 --> 00:05:48,919 Speaker 9: of that, of course, American, European, Japanese hardware providers of 97 00:05:49,040 --> 00:05:56,920 Speaker 9: China's semiconductor global semiconductor manufacturing are being pressured to restrict 98 00:05:57,040 --> 00:05:59,799 Speaker 9: what they are going to continue to sell and service 99 00:05:59,839 --> 00:06:03,279 Speaker 9: in China. That's where so much of this uncertainty is 100 00:06:03,320 --> 00:06:07,159 Speaker 9: because the question of how what are the restrictions. Will 101 00:06:07,200 --> 00:06:11,039 Speaker 9: the United States be successful in negotiating with the Dutch, 102 00:06:11,160 --> 00:06:15,360 Speaker 9: with the Japanese governments to really expand restrictions on what 103 00:06:15,440 --> 00:06:17,520 Speaker 9: can be provided to China is the key. 104 00:06:18,400 --> 00:06:21,880 Speaker 5: How much do you believe that the threats will become reality. 105 00:06:22,120 --> 00:06:23,839 Speaker 5: How much do you think that the Dutch and the 106 00:06:23,920 --> 00:06:28,680 Speaker 5: Japanese will curtailed servicing technology that already exists in China. 107 00:06:29,720 --> 00:06:31,960 Speaker 9: Well, I think there's going to continue, of course, to 108 00:06:32,000 --> 00:06:37,800 Speaker 9: be American industry pressure that not they alone face those restrictions, 109 00:06:37,839 --> 00:06:41,240 Speaker 9: Caroline and so. While of course US industry doesn't want 110 00:06:41,279 --> 00:06:43,400 Speaker 9: to see more restrictions on what they can sell to 111 00:06:43,480 --> 00:06:46,800 Speaker 9: China if there is not a direct national security concern, 112 00:06:47,520 --> 00:06:52,800 Speaker 9: they right now are unfairly competing against Japanese and Dutch 113 00:06:52,839 --> 00:06:56,440 Speaker 9: companies that are continuing to sell to China, and so yes, 114 00:06:56,560 --> 00:06:58,800 Speaker 9: I do think that there's going to be more pressure 115 00:06:59,440 --> 00:07:03,000 Speaker 9: to expand those restrictions. I do not think what we 116 00:07:03,000 --> 00:07:05,800 Speaker 9: were rumored to be hearing about that there was going 117 00:07:05,880 --> 00:07:10,600 Speaker 9: to be a massive expansion is going to come into place, 118 00:07:10,640 --> 00:07:13,080 Speaker 9: certainly not in the Biden administration. I think there will 119 00:07:13,120 --> 00:07:17,960 Speaker 9: be incremental steps to restrict certain companies in China from 120 00:07:18,000 --> 00:07:25,560 Speaker 9: receiving from receiving more semiconductor hardware products in the near term. 121 00:07:25,720 --> 00:07:28,480 Speaker 9: The Trump administration, which is what we are talking about here, 122 00:07:28,880 --> 00:07:31,160 Speaker 9: is the big unknown amy. 123 00:07:31,520 --> 00:07:35,160 Speaker 6: It takes two to tango right, and you don't have 124 00:07:35,200 --> 00:07:38,120 Speaker 6: a crystal ball. But if you take the EV industry 125 00:07:38,160 --> 00:07:42,000 Speaker 6: as a parallel example, what China did was give large 126 00:07:42,080 --> 00:07:45,680 Speaker 6: volume subsidy, but it had a limited shelf life. Do 127 00:07:45,720 --> 00:07:48,240 Speaker 6: you recognize a sort of willingness from the Chinese government 128 00:07:48,320 --> 00:07:52,400 Speaker 6: to sort of fund their response to any sort of 129 00:07:52,400 --> 00:07:57,640 Speaker 6: political or geopolitical policy that either administration comes with in November? 130 00:07:58,960 --> 00:08:00,520 Speaker 4: Yeah, I think that's the key key point. 131 00:08:00,640 --> 00:08:03,800 Speaker 9: I think the Dutch and the Japanese are very concerned, 132 00:08:03,840 --> 00:08:06,840 Speaker 9: not just for their companies that are providing the technology 133 00:08:06,840 --> 00:08:09,960 Speaker 9: hardware to China, were they to be restricted, It's not 134 00:08:10,000 --> 00:08:12,160 Speaker 9: just their profits, it's China's retaliation. 135 00:08:12,680 --> 00:08:13,960 Speaker 4: I think Shi Jinping. 136 00:08:13,720 --> 00:08:19,040 Speaker 9: Has been extremely clear that if a stranglehold on certain 137 00:08:19,840 --> 00:08:24,560 Speaker 9: high tech products and services continues visa via China market, 138 00:08:24,680 --> 00:08:26,760 Speaker 9: he is going to respond. He is not, as he 139 00:08:26,800 --> 00:08:30,240 Speaker 9: has said, going to sit idly by and watch those 140 00:08:30,320 --> 00:08:34,400 Speaker 9: restrictions continue to expand. And so the Dutch, the Japanese 141 00:08:34,720 --> 00:08:37,800 Speaker 9: and the US government have to think long and hard 142 00:08:37,960 --> 00:08:42,520 Speaker 9: on the kinds of retaliatory tools China has available right now. 143 00:08:42,600 --> 00:08:48,200 Speaker 9: For example, sport restrictions on graphite caroline to Japan, something 144 00:08:48,559 --> 00:08:52,040 Speaker 9: Japanese industry desperately needs. My final point, though, would be 145 00:08:52,480 --> 00:08:56,080 Speaker 9: China has to weigh its retaliation to make sure the 146 00:08:56,160 --> 00:09:01,480 Speaker 9: retaliatory moves don't harm further and all ready very very 147 00:09:01,559 --> 00:09:05,360 Speaker 9: shaky economy in China, well said at the leftfidge it 148 00:09:05,480 --> 00:09:06,520 Speaker 9: had a few years ago. 149 00:09:06,679 --> 00:09:10,439 Speaker 5: You advise corporates, you advise nonprofit clients at the moment, 150 00:09:10,520 --> 00:09:11,679 Speaker 5: ultimately about. 151 00:09:12,080 --> 00:09:13,520 Speaker 4: Business and policy interests. 152 00:09:13,960 --> 00:09:17,040 Speaker 5: Can you advise us in our audience about Taiwan about 153 00:09:17,040 --> 00:09:19,760 Speaker 5: some of the sentiment that seemed to be displayed by 154 00:09:19,800 --> 00:09:23,160 Speaker 5: an interview of being by BusinessWeek with former President Trump 155 00:09:23,240 --> 00:09:26,400 Speaker 5: that maybe they wouldn't come to Taiwan's aid. What does 156 00:09:26,440 --> 00:09:28,160 Speaker 5: that mean for TSMC and for Taiwan. 157 00:09:29,800 --> 00:09:33,720 Speaker 9: Well, obviously the silence coming from Taiwan is deafening. 158 00:09:33,800 --> 00:09:34,040 Speaker 1: Here. 159 00:09:34,200 --> 00:09:42,240 Speaker 9: They are not responding todent former President Trump's Bloomberg interview there. Instead, 160 00:09:42,320 --> 00:09:47,000 Speaker 9: they're choosing to stand by what the platform of the 161 00:09:47,000 --> 00:09:51,720 Speaker 9: Republican Party traditionally has been, which is to include Taiwan 162 00:09:51,840 --> 00:09:54,520 Speaker 9: in it and to say that, of course, the United 163 00:09:54,520 --> 00:10:00,520 Speaker 9: States and Taiwan have a legislatively mandated very strong relatedationship 164 00:10:01,280 --> 00:10:05,680 Speaker 9: that does include US provisions to come to Taiwan's aid. 165 00:10:06,080 --> 00:10:08,280 Speaker 9: Of course, it's up to the commander in chief. So 166 00:10:09,080 --> 00:10:13,480 Speaker 9: Taiwan authorities must be worried, but I will say the 167 00:10:13,600 --> 00:10:18,400 Speaker 9: worry is probably not severe right now because most of 168 00:10:18,440 --> 00:10:22,960 Speaker 9: the advisors around President Trump, including his selection of vice 169 00:10:23,000 --> 00:10:28,000 Speaker 9: presidential candidate with JD. Vans, are very strong supporters of Taiwan, 170 00:10:28,520 --> 00:10:32,000 Speaker 9: and so within a Trump two administration were that to 171 00:10:32,080 --> 00:10:35,680 Speaker 9: come to pass, there are going to be very significant 172 00:10:35,720 --> 00:10:40,920 Speaker 9: conversations around how the United States continues to focus more 173 00:10:41,160 --> 00:10:44,160 Speaker 9: on Asia than Europe, which is clearly a platform that 174 00:10:44,200 --> 00:10:46,880 Speaker 9: we're starting to hear coming out of the Republican Convention, 175 00:10:47,600 --> 00:10:50,120 Speaker 9: and what that means for US policy towards Taiwan. 176 00:10:50,200 --> 00:10:51,000 Speaker 8: So I wouldn't be. 177 00:10:51,280 --> 00:10:54,600 Speaker 9: So quick to conclude that President Trump is going to 178 00:10:54,640 --> 00:10:57,800 Speaker 9: abandon Taiwan in the event of some kind of conflict 179 00:10:58,120 --> 00:11:02,320 Speaker 9: that would really be going against traditional US policy, particularly 180 00:11:02,360 --> 00:11:03,480 Speaker 9: among the Republicans. 181 00:11:04,120 --> 00:11:06,920 Speaker 5: Amy so important to have your expertise. We thank you, 182 00:11:06,960 --> 00:11:09,800 Speaker 5: Amy Seller, co principle analyst at All bright Stonebridge Group. 183 00:11:10,200 --> 00:11:11,120 Speaker 4: We thank you, Ed. 184 00:11:11,640 --> 00:11:14,320 Speaker 5: What's so interesting is we see this volatility in the 185 00:11:14,360 --> 00:11:17,720 Speaker 5: individual stocks today as we question ultimately some of the 186 00:11:17,760 --> 00:11:20,320 Speaker 5: valuations where we've run to in the videos. 187 00:11:19,960 --> 00:11:20,400 Speaker 4: And the like. 188 00:11:21,360 --> 00:11:23,360 Speaker 6: Yeah, I think what's so astonishing about the conversation. We 189 00:11:23,520 --> 00:11:26,480 Speaker 6: just had detail, but we didn't even discuss about another factor, 190 00:11:26,920 --> 00:11:30,240 Speaker 6: which is the AI driven boom right growth driven by 191 00:11:30,280 --> 00:11:35,280 Speaker 6: demand for AI accelerator manufacturing TSMC has clients everywhere, and 192 00:11:35,360 --> 00:11:38,280 Speaker 6: so I just wonder how maybe we'll talk to Jensen 193 00:11:38,320 --> 00:11:40,240 Speaker 6: about it in a few weeks time. But it's like 194 00:11:40,800 --> 00:11:43,800 Speaker 6: geopolitics takes away one market. There are plenty waiting the 195 00:11:43,840 --> 00:11:46,440 Speaker 6: wings to get some capacity, and I just thought it 196 00:11:46,480 --> 00:11:48,160 Speaker 6: was weird that we're right bring that up. 197 00:11:48,400 --> 00:11:53,120 Speaker 5: But then Goldman Sachs's top research analyst today currently saying, 198 00:11:53,520 --> 00:11:56,360 Speaker 5: maybe you need to question the ultimate demand of AI 199 00:11:56,520 --> 00:11:59,160 Speaker 5: in the longer term. Will it really drive this productivity 200 00:11:59,200 --> 00:12:03,320 Speaker 5: group story on Jim Cavolo from some of our colleagues 201 00:12:03,360 --> 00:12:04,280 Speaker 5: in Bloomberg News today. 202 00:12:04,280 --> 00:12:06,360 Speaker 4: Meanwhile, coming up, Apple we know is in. 203 00:12:06,320 --> 00:12:09,440 Speaker 5: Talks to license more films from major Hollywood studios. 204 00:12:09,559 --> 00:12:11,960 Speaker 4: Look, it's an effort to bolsterous Apple TV plus streaming 205 00:12:12,000 --> 00:12:15,240 Speaker 4: service being reported by Bloomberg. Stick with us. This is 206 00:12:15,240 --> 00:12:31,839 Speaker 4: Bloomberg Technology Media News now. 207 00:12:31,840 --> 00:12:35,040 Speaker 5: Bloomberg reporting that Apple is in talks with several major 208 00:12:35,080 --> 00:12:38,560 Speaker 5: Hollywood studios about acquiring more films for their Apple Plus 209 00:12:38,600 --> 00:12:42,880 Speaker 5: streaming service, which currently features almost entirely original production. There's 210 00:12:42,880 --> 00:12:45,680 Speaker 5: a lot going on in Hollywood. Chris Paul Mary breaks 211 00:12:45,720 --> 00:12:47,680 Speaker 5: it down for us. Let's just start on the Apple 212 00:12:47,760 --> 00:12:50,600 Speaker 5: news for now. Who would they be garnering from? Is 213 00:12:50,640 --> 00:12:52,720 Speaker 5: it like relief for some of those studios right now? 214 00:12:53,600 --> 00:12:56,400 Speaker 2: We didn't report the exact names, but you know, you 215 00:12:56,440 --> 00:12:59,600 Speaker 2: can imagine sort of all the all the big folks 216 00:12:59,679 --> 00:13:04,680 Speaker 2: in the entertainment business, whether it's you know, Universal, Warner Brothers, Comcast, Disney, 217 00:13:06,200 --> 00:13:08,760 Speaker 2: all of those players, and what's going on here is 218 00:13:08,760 --> 00:13:12,080 Speaker 2: is Apple TV originally had a strategy to focus really 219 00:13:12,440 --> 00:13:15,640 Speaker 2: on high quality original programming. You know, it's had some, 220 00:13:16,160 --> 00:13:21,080 Speaker 2: for sure hits, Ted Lasso The Morning Show, but it's 221 00:13:21,320 --> 00:13:24,160 Speaker 2: not as watched as some of the other big players 222 00:13:24,280 --> 00:13:27,960 Speaker 2: in the industry, and in particular they're film Slate. You know, 223 00:13:28,000 --> 00:13:31,480 Speaker 2: they made a big billion dollar commitment to make original 224 00:13:31,480 --> 00:13:33,720 Speaker 2: movies and to put them at least the first in 225 00:13:33,760 --> 00:13:38,520 Speaker 2: theaters as well. Hollywood applauded. But you know they've had 226 00:13:38,640 --> 00:13:41,000 Speaker 2: more than their share of Dud's our Guyle big action 227 00:13:41,120 --> 00:13:44,040 Speaker 2: movie two hundred million dollars. It's one I just saw 228 00:13:44,080 --> 00:13:47,600 Speaker 2: this weekend, fly Me to the Moon. Nice movie, but 229 00:13:47,920 --> 00:13:52,000 Speaker 2: you know, not really burning it up. So this is 230 00:13:52,000 --> 00:13:54,720 Speaker 2: a shift in strategy to try to get more library 231 00:13:54,720 --> 00:13:58,120 Speaker 2: content on there and and build the audience for Apple TV. 232 00:13:59,120 --> 00:14:03,480 Speaker 6: That's probably, Chris, what Netflix has, right. You know, I 233 00:14:03,520 --> 00:14:06,240 Speaker 6: was actually watching World of Warcraft the other day on Netflix, 234 00:14:06,240 --> 00:14:09,080 Speaker 6: which is a twenty sixteen film. I won't give my 235 00:14:09,200 --> 00:14:11,720 Speaker 6: review of it, but that's where you go to, right. 236 00:14:11,840 --> 00:14:16,280 Speaker 6: Netflix has this sort of endless catalog. How much volume 237 00:14:16,320 --> 00:14:18,280 Speaker 6: dollar wise is Apple going to have to put into 238 00:14:18,320 --> 00:14:19,920 Speaker 6: this to like fight back? 239 00:14:21,000 --> 00:14:24,880 Speaker 2: Numbers on Apple's are scarce to come by some of 240 00:14:24,880 --> 00:14:26,600 Speaker 2: the other operators, but. 241 00:14:28,120 --> 00:14:29,640 Speaker 8: We're seeing this across the industry. 242 00:14:29,640 --> 00:14:32,000 Speaker 2: We're seeing both There was originally the theory was all 243 00:14:32,000 --> 00:14:34,280 Speaker 2: these streaming services going to have walled gardens in their 244 00:14:34,320 --> 00:14:37,320 Speaker 2: own content and it wasn't going to be sold elsewhere, 245 00:14:37,320 --> 00:14:40,640 Speaker 2: And that's completely broken down. Now we have shows on 246 00:14:40,720 --> 00:14:45,560 Speaker 2: multiple streaming services TV outlets. In a way, it makes 247 00:14:45,560 --> 00:14:48,840 Speaker 2: it easier for consumers to find stuff, but it just 248 00:14:49,160 --> 00:14:53,280 Speaker 2: it does devalue away the exclusivity of the programming. 249 00:14:53,480 --> 00:14:58,120 Speaker 5: Yeah, what continues to hurt is legacy TV. Chris, And 250 00:14:58,200 --> 00:15:01,200 Speaker 5: you're out with some of that ft reporting today that 251 00:15:01,360 --> 00:15:05,000 Speaker 5: maybe Warner Brothers, Discovery and David saslav Over at the 252 00:15:05,000 --> 00:15:08,240 Speaker 5: company are thinking of splitting up studios streaming from the 253 00:15:08,320 --> 00:15:09,000 Speaker 5: legacy TV. 254 00:15:09,120 --> 00:15:13,120 Speaker 2: Why well, first of all, there's stock prices just in 255 00:15:13,200 --> 00:15:15,600 Speaker 2: the dumps, just a real terrible performer. 256 00:15:16,440 --> 00:15:16,680 Speaker 1: Either. 257 00:15:16,680 --> 00:15:19,640 Speaker 2: They put these two companies together, Warner Brothers in Discovery 258 00:15:19,800 --> 00:15:22,720 Speaker 2: with these big plans to really beef up the max 259 00:15:22,760 --> 00:15:25,240 Speaker 2: streaming beef's business. 260 00:15:24,480 --> 00:15:26,560 Speaker 8: And it just hasn't worked. 261 00:15:26,760 --> 00:15:30,040 Speaker 2: And David Szaz left the CEOs sort of acknowledged that 262 00:15:30,160 --> 00:15:34,280 Speaker 2: this month at Sun Valley he said that the industry's 263 00:15:34,320 --> 00:15:38,240 Speaker 2: fisting to need more consolidation. Now, whether this particular split 264 00:15:38,320 --> 00:15:40,640 Speaker 2: up is the way to do that getting a lot 265 00:15:40,680 --> 00:15:44,600 Speaker 2: of skepticism from analysts or the problem is that the 266 00:15:44,640 --> 00:15:49,040 Speaker 2: traditional TV networks, although they're declining and we're talking about you, TNT, 267 00:15:49,280 --> 00:15:52,920 Speaker 2: CNN and that, are still the cash generators, and the 268 00:15:52,960 --> 00:15:55,840 Speaker 2: studio and the streaming business aren't making as much money 269 00:15:55,840 --> 00:15:59,200 Speaker 2: and need the money to invest in new programming. So 270 00:15:59,760 --> 00:16:02,760 Speaker 2: with forty billion or so in debt on the books, 271 00:16:02,800 --> 00:16:06,360 Speaker 2: how that's going to rationalize itself is very difficult to 272 00:16:07,000 --> 00:16:09,000 Speaker 2: figure out, and that that's why analysts are. 273 00:16:08,880 --> 00:16:11,600 Speaker 8: Skeptical that this is the route. But I think the 274 00:16:11,680 --> 00:16:12,440 Speaker 8: stock is up. 275 00:16:12,360 --> 00:16:16,000 Speaker 2: Because people are applauding that the company recognized that it 276 00:16:16,040 --> 00:16:17,280 Speaker 2: needs to do something different. 277 00:16:18,760 --> 00:16:21,280 Speaker 6: One fors us love to think about bloom Best Chris Palm, Mary, 278 00:16:21,360 --> 00:16:22,160 Speaker 6: thank you very much. 279 00:16:30,280 --> 00:16:31,400 Speaker 4: Time now for talking tech. 280 00:16:31,480 --> 00:16:35,040 Speaker 5: First up, Publicis It raises its guidance. The advertising agency 281 00:16:35,040 --> 00:16:37,560 Speaker 5: posted stronger growth in the first half as He's net 282 00:16:37,600 --> 00:16:40,080 Speaker 5: revenue growing by five to six percent this year, up 283 00:16:40,080 --> 00:16:42,240 Speaker 5: from four to five percent previously. But the company is 284 00:16:42,240 --> 00:16:44,760 Speaker 5: announced earlier this year that it would attempt to strengthen 285 00:16:44,800 --> 00:16:48,520 Speaker 5: its data analysis and artificial intelligence capabilities as in an 286 00:16:48,520 --> 00:16:52,840 Speaker 5: effort to combat the slump in the advertising industry. Meanwhile, 287 00:16:52,840 --> 00:16:56,000 Speaker 5: India's Emphasis also raising its sales forecast for the year. 288 00:16:56,040 --> 00:16:57,920 Speaker 5: Now the company expects revenue to grow three to four 289 00:16:57,960 --> 00:17:01,080 Speaker 5: percent on a constant currency basis in the fiscal year 290 00:17:01,160 --> 00:17:03,680 Speaker 5: through March twenty twenty five. Because a sign that clients 291 00:17:03,680 --> 00:17:06,960 Speaker 5: are gradually increasing tech spend, Who's to buy a resilient 292 00:17:06,960 --> 00:17:11,960 Speaker 5: global economy. The battle for potential ether ETF assets is 293 00:17:12,000 --> 00:17:14,040 Speaker 5: already on the way. Even as the funds have yet 294 00:17:14,080 --> 00:17:16,879 Speaker 5: to launch issuers, including the Black Crocs, Fidelity, and Vesco, 295 00:17:17,119 --> 00:17:20,159 Speaker 5: they're already coming forward with how much or how little 296 00:17:20,400 --> 00:17:23,080 Speaker 5: they're going to charge their respective ether ETF said. 297 00:17:23,920 --> 00:17:26,359 Speaker 6: Okay, let's dive more into that with Bloomberg's Isabelle Lee, 298 00:17:26,400 --> 00:17:28,919 Speaker 6: who's one of the bylines on our reporting about it 299 00:17:28,960 --> 00:17:32,120 Speaker 6: this morning. It ranges from zero point two percent fee 300 00:17:32,200 --> 00:17:34,040 Speaker 6: to two and a half percent fee on the gray 301 00:17:34,040 --> 00:17:38,600 Speaker 6: scale ethereum trust, but that one has no conditions attached 302 00:17:38,640 --> 00:17:41,760 Speaker 6: to it. Essentially, what does all that mean? What does 303 00:17:41,760 --> 00:17:42,960 Speaker 6: that tell you, Isabelle? 304 00:17:43,240 --> 00:17:45,119 Speaker 10: So this few r has been really going on for 305 00:17:45,119 --> 00:17:48,199 Speaker 10: a while in this highly competitive space because theoretically, the 306 00:17:48,280 --> 00:17:51,000 Speaker 10: lower your fee, the more attractive it will be to issuers. 307 00:17:51,000 --> 00:17:54,359 Speaker 10: And yesterday was important because a lot of issuers filed 308 00:17:54,359 --> 00:17:56,119 Speaker 10: what they call an S one and that revealed the 309 00:17:56,160 --> 00:17:57,879 Speaker 10: feast and we went through all of them and the 310 00:17:57,920 --> 00:18:01,200 Speaker 10: face range from nineteen basis points to twenty for contact. 311 00:18:01,240 --> 00:18:03,640 Speaker 10: That is very cheap. They're cheap, as some would call it. Yes, 312 00:18:03,720 --> 00:18:06,600 Speaker 10: Grayscale is on the higher end at around two and 313 00:18:06,600 --> 00:18:09,120 Speaker 10: a half percent, but that's an exception because they're trying 314 00:18:09,160 --> 00:18:12,120 Speaker 10: to launch or to convert their trust into an ETF. 315 00:18:12,160 --> 00:18:14,920 Speaker 10: But all that to say, these funds are really priced 316 00:18:14,920 --> 00:18:16,639 Speaker 10: at such a low fee, and in fact a lot 317 00:18:16,680 --> 00:18:19,359 Speaker 10: of them have conditions. For instance, black Rock will have 318 00:18:19,440 --> 00:18:21,720 Speaker 10: a partial waiver in the first year. Several said that 319 00:18:21,760 --> 00:18:23,800 Speaker 10: in the first six months it'll be free. And I 320 00:18:23,840 --> 00:18:27,119 Speaker 10: think issuers really learned their lesson because during the Bitcoin 321 00:18:27,200 --> 00:18:30,440 Speaker 10: ETF a lot of them really just lowered and lowered 322 00:18:30,440 --> 00:18:32,960 Speaker 10: as each day passed and even canceled leading up to 323 00:18:33,000 --> 00:18:35,040 Speaker 10: the launch. But for now, in the first get go 324 00:18:35,359 --> 00:18:36,280 Speaker 10: they were already cheap. 325 00:18:37,359 --> 00:18:38,600 Speaker 4: I mean, I don't know if they did learn the 326 00:18:38,680 --> 00:18:41,920 Speaker 4: lesson because they're really cheap again the waiving fees. 327 00:18:42,000 --> 00:18:44,639 Speaker 5: They're saying you can be free for six months, but 328 00:18:44,720 --> 00:18:48,439 Speaker 5: what pats are also anticipating is ultimately less inflows this 329 00:18:48,560 --> 00:18:51,040 Speaker 5: time round. The problem with eth is that you could 330 00:18:51,080 --> 00:18:53,040 Speaker 5: stake it if you're not putting in an ETF, and 331 00:18:53,080 --> 00:18:54,600 Speaker 5: therefore that's an opportunity cost. 332 00:18:54,520 --> 00:18:57,160 Speaker 10: Right Exactly, we have City Group expecting four to five 333 00:18:57,200 --> 00:18:59,399 Speaker 10: billion launch for the first six months in inflows and 334 00:18:59,440 --> 00:19:02,600 Speaker 10: for Contact black Rock, so that's only one ETF called 335 00:19:02,640 --> 00:19:04,880 Speaker 10: in one billion in the first four days and as 336 00:19:04,880 --> 00:19:07,080 Speaker 10: a whole now it's been seven months, but then we 337 00:19:07,160 --> 00:19:09,840 Speaker 10: can see sixteen billion in total for the cohorts, so 338 00:19:09,880 --> 00:19:12,560 Speaker 10: it's really a weak demand. And to your point, why 339 00:19:12,560 --> 00:19:14,800 Speaker 10: would you buy an ether ETF. So that's really it's 340 00:19:14,960 --> 00:19:17,320 Speaker 10: kind of a harder sell because for a bitcoin, yes 341 00:19:17,400 --> 00:19:20,000 Speaker 10: it's digital gold, hedge, cans inflation, you buy it. But 342 00:19:20,040 --> 00:19:22,919 Speaker 10: for Ether, the participants really want it for staking, so 343 00:19:23,480 --> 00:19:25,520 Speaker 10: having it in a trust and the fund is really 344 00:19:25,880 --> 00:19:28,720 Speaker 10: a little questionable for others, so the demand is less. 345 00:19:28,760 --> 00:19:31,160 Speaker 10: And also those who want crypto exposure, the big Wall 346 00:19:31,160 --> 00:19:34,000 Speaker 10: Street firms already got it in January, and it's a bitcoin. 347 00:19:34,040 --> 00:19:35,800 Speaker 10: It's the biggest coin, it's the most stable, it's the 348 00:19:35,840 --> 00:19:39,200 Speaker 10: most established, So why had your bets on something smaller? 349 00:19:39,400 --> 00:19:41,880 Speaker 10: Although as thing to think about is Ether is kind 350 00:19:41,880 --> 00:19:44,639 Speaker 10: of the leader of the alt coin world, so this 351 00:19:44,800 --> 00:19:47,600 Speaker 10: may pave the way for smaller alt coins. Who knows, 352 00:19:47,800 --> 00:19:49,679 Speaker 10: we'll already have Solona filing. 353 00:19:49,800 --> 00:19:53,480 Speaker 5: So yeah, this was questioning around Solona, and ultimately the 354 00:19:53,560 --> 00:19:55,240 Speaker 5: question around Selana is because. 355 00:19:55,119 --> 00:19:56,840 Speaker 4: What's the SEC view it as? 356 00:19:57,080 --> 00:19:58,920 Speaker 5: And I think this is the issue with the staking, 357 00:19:59,000 --> 00:20:01,840 Speaker 5: right is the SEC it's just not comfortable that it 358 00:20:01,960 --> 00:20:05,520 Speaker 5: ultimately isn't a security if you're able to put it 359 00:20:05,560 --> 00:20:08,240 Speaker 5: aside and raise funds and yield on it. 360 00:20:08,520 --> 00:20:10,800 Speaker 10: A lot of issuers already made concessions they were removed 361 00:20:10,800 --> 00:20:14,040 Speaker 10: Staking because this racisn't do a question is Ether security, 362 00:20:14,119 --> 00:20:17,080 Speaker 10: So they really had to compromise on a lot of things. 363 00:20:17,080 --> 00:20:19,600 Speaker 10: But then if you still ask the Ether boss, they're 364 00:20:19,640 --> 00:20:22,240 Speaker 10: just happy, said there's going to be an ETF out there. It's, 365 00:20:22,280 --> 00:20:25,600 Speaker 10: you know, a major milestone in the crypto industry, second milestone. 366 00:20:25,880 --> 00:20:28,040 Speaker 4: So there are pros and cons of it. 367 00:20:28,040 --> 00:20:31,680 Speaker 10: But it's definitely a landmark if you will think about it. 368 00:20:31,760 --> 00:20:33,520 Speaker 4: Slowly but surely, yes, us. 369 00:20:33,400 --> 00:20:36,240 Speaker 11: Catching up with Europe and giving access to these sorts 370 00:20:36,240 --> 00:20:39,640 Speaker 11: of Canada and Canada, Well said Isabel Lee, with all 371 00:20:39,680 --> 00:20:41,560 Speaker 11: the take as we look towards what could be of 372 00:20:41,600 --> 00:20:44,800 Speaker 11: course that eth ETF going live as soon as well 373 00:20:44,840 --> 00:20:45,920 Speaker 11: Tuesday next weekend. 374 00:20:54,000 --> 00:20:55,320 Speaker 4: Welcome back to bluemog Technology. 375 00:20:55,359 --> 00:20:57,959 Speaker 6: I'm Caroline Hyde in New York and I made Ludlow 376 00:20:58,000 --> 00:20:58,840 Speaker 6: in San Francisco. 377 00:20:59,160 --> 00:20:59,840 Speaker 4: Look, what is the. 378 00:21:00,080 --> 00:21:04,480 Speaker 5: Ability now of a TikTok ban if Donald Trump wins 379 00:21:04,520 --> 00:21:05,760 Speaker 5: the White House in November. 380 00:21:06,080 --> 00:21:08,120 Speaker 4: Well, some analysis have been done by Bloomberg. 381 00:21:07,680 --> 00:21:10,480 Speaker 5: Intelligence crunching those numbers in its latest report. And I'm 382 00:21:10,480 --> 00:21:12,800 Speaker 5: pleased to say we're joined by Senior Technology and as 383 00:21:12,840 --> 00:21:15,800 Speaker 5: Mandate seeingh who sort of went through the tea leaves 384 00:21:15,840 --> 00:21:18,280 Speaker 5: of what was being written in the Bloomberg BusinessWeek story 385 00:21:18,280 --> 00:21:22,719 Speaker 5: that interview with President Trump former president, and ultimately it 386 00:21:22,760 --> 00:21:25,320 Speaker 5: feels as though maybe he's less against TikTok, but because 387 00:21:25,359 --> 00:21:27,400 Speaker 5: of Meta and because of US companies. 388 00:21:27,680 --> 00:21:31,359 Speaker 12: Yes, And look, his views are pretty clear, even though 389 00:21:31,400 --> 00:21:33,480 Speaker 12: they have changed since the time he was in the 390 00:21:33,520 --> 00:21:35,880 Speaker 12: White House to where they are now. But at least 391 00:21:35,880 --> 00:21:37,919 Speaker 12: he has said it clearly that he doesn't want to 392 00:21:37,960 --> 00:21:41,719 Speaker 12: ban TikTok, and because his ratings have gone up. I mean, 393 00:21:41,760 --> 00:21:44,240 Speaker 12: we are in an environment where, you know, every day 394 00:21:44,320 --> 00:21:47,840 Speaker 12: the poll ratings are changing, and I think right now 395 00:21:47,840 --> 00:21:50,720 Speaker 12: the market is behaving as if Trump was to get 396 00:21:50,720 --> 00:21:53,879 Speaker 12: elected and he is against the band, even though the 397 00:21:54,000 --> 00:21:57,000 Speaker 12: law has been passed that TikTok needs to get divested 398 00:21:57,680 --> 00:21:59,760 Speaker 12: within the next one year or it will be banned. 399 00:21:59,800 --> 00:22:03,480 Speaker 12: So clearly the market is saying otherwise because Meta has 400 00:22:03,520 --> 00:22:06,439 Speaker 12: gone down, Snapchat has gone down, and the stocks have 401 00:22:06,520 --> 00:22:09,680 Speaker 12: reacted that you know, the banter isn't going to go through. 402 00:22:09,720 --> 00:22:15,000 Speaker 12: And look, he's driving the campaign through TikTok. I mean, 403 00:22:15,400 --> 00:22:18,840 Speaker 12: Trump is on social media on TikTok. That's the one 404 00:22:18,880 --> 00:22:21,600 Speaker 12: thing you wouldn't have expected. So he's getting a lot 405 00:22:21,640 --> 00:22:24,560 Speaker 12: of donors to his campaign from TikTok, and we know 406 00:22:24,640 --> 00:22:27,680 Speaker 12: the swing voters are probably on TikTok, so he can 407 00:22:27,720 --> 00:22:30,920 Speaker 12: appeal to those TikTok users by telling them, hey, you're 408 00:22:30,960 --> 00:22:32,480 Speaker 12: not banning this platform anymore. 409 00:22:32,600 --> 00:22:34,240 Speaker 4: True social TikTok. 410 00:22:34,800 --> 00:22:37,960 Speaker 5: Who would it ultimately affect the most in terms of 411 00:22:38,040 --> 00:22:43,240 Speaker 5: market capitalization, in terms of user figures, if indeed TikTok 412 00:22:43,240 --> 00:22:45,320 Speaker 5: stays around, has it got to be matter or there others? 413 00:22:45,680 --> 00:22:49,719 Speaker 12: Yeah, So our initial analysis was TikTok has almost you know, 414 00:22:49,840 --> 00:22:53,000 Speaker 12: one third of the US adults users, more than sixty 415 00:22:53,040 --> 00:22:55,520 Speaker 12: percent of people under the thirty age group, and they 416 00:22:55,560 --> 00:22:58,000 Speaker 12: spend almost eighty minutes a day. 417 00:22:58,160 --> 00:22:59,320 Speaker 4: Where did they have time? 418 00:23:00,080 --> 00:23:03,080 Speaker 12: They apparently do, But the thing is if they were 419 00:23:03,119 --> 00:23:06,880 Speaker 12: if TikTok was banned, then you know platforms like Snapchat 420 00:23:07,240 --> 00:23:10,600 Speaker 12: that has a lot of video content, short videos, YouTube shorts, 421 00:23:10,880 --> 00:23:13,840 Speaker 12: Instagram reels, they are the three that will benefit the 422 00:23:13,920 --> 00:23:16,919 Speaker 12: most because that eighty minutes will get split into you know, 423 00:23:17,400 --> 00:23:21,119 Speaker 12: wherever people can spend their time, even ruad blocks or Netflix, 424 00:23:21,240 --> 00:23:23,200 Speaker 12: because at the end of the day, it's a zero 425 00:23:23,280 --> 00:23:23,960 Speaker 12: some game. 426 00:23:23,920 --> 00:23:25,200 Speaker 4: But they're not just get to talk to people in 427 00:23:25,240 --> 00:23:26,320 Speaker 4: real life. They can find it. 428 00:23:26,359 --> 00:23:29,080 Speaker 12: I think that's where they consume all their news and 429 00:23:29,160 --> 00:23:32,680 Speaker 12: all their content, so they'll spend time on social media. 430 00:23:32,840 --> 00:23:34,240 Speaker 12: Question is where do they do that? 431 00:23:34,440 --> 00:23:38,760 Speaker 6: Yeah, man, this is your research. It focuses on TikTok, 432 00:23:38,840 --> 00:23:41,959 Speaker 6: But you know that the public comments by former President 433 00:23:42,000 --> 00:23:45,680 Speaker 6: Trump about his kind of logic that if they ban TikTok, 434 00:23:45,720 --> 00:23:48,800 Speaker 6: it kind of opens the door to Meta and it's 435 00:23:49,080 --> 00:23:52,919 Speaker 6: wide range of properties being all encompassing kind of explains 436 00:23:52,920 --> 00:23:55,639 Speaker 6: to us your process how the sausage is made, so 437 00:23:55,680 --> 00:23:58,400 Speaker 6: to speak. But also I guess the next research coming 438 00:23:58,400 --> 00:24:01,320 Speaker 6: from you is the risks to met if Trump were 439 00:24:01,359 --> 00:24:02,600 Speaker 6: to end up in the White House. 440 00:24:03,160 --> 00:24:05,800 Speaker 12: Yeah, I mean, look at the anti trust risk is 441 00:24:05,840 --> 00:24:09,119 Speaker 12: there for all these large platforms, and specifically in the 442 00:24:09,160 --> 00:24:12,159 Speaker 12: case of Vetta given it owns, you know, three of 443 00:24:12,240 --> 00:24:16,720 Speaker 12: the most popular websites where people spend most of their time, 444 00:24:16,800 --> 00:24:20,959 Speaker 12: and there's always been that concern against divesting any of 445 00:24:21,480 --> 00:24:24,919 Speaker 12: those platforms. So clearly Meta is the most exposed on 446 00:24:24,960 --> 00:24:27,679 Speaker 12: that front. But I still think, you know, when it 447 00:24:27,760 --> 00:24:32,840 Speaker 12: comes to Trump, there's always volatility and uncertainty. You know, 448 00:24:33,040 --> 00:24:37,000 Speaker 12: even the TSMC comments like the whole Silicon Valley supported him, 449 00:24:37,000 --> 00:24:40,040 Speaker 12: and now you're hearing you know the comments around TSMC. 450 00:24:40,119 --> 00:24:45,040 Speaker 12: So there's always that uncertainty associated with you know, President Trump, 451 00:24:45,080 --> 00:24:47,800 Speaker 12: and it could change. The opinion could change, you know, 452 00:24:48,400 --> 00:24:52,399 Speaker 12: a few months from after he gets reelected. 453 00:24:52,480 --> 00:24:53,280 Speaker 4: If it does. 454 00:24:53,320 --> 00:24:56,800 Speaker 5: Indeed, Mande saying of bloem Meg Intelligence, thank you so much. 455 00:24:56,840 --> 00:24:59,679 Speaker 5: And look, maybe it's not just the words of Donald 456 00:24:59,720 --> 00:25:01,960 Speaker 5: Trump but also his new running mate that are being 457 00:25:02,000 --> 00:25:05,120 Speaker 5: passed at the moment, JD Vance and his ties Silicon 458 00:25:05,200 --> 00:25:08,480 Speaker 5: Valley and venture capital drawing praise from some in the community. 459 00:25:08,520 --> 00:25:12,080 Speaker 4: Take a listen. I had a fantastic experience with JD. 460 00:25:12,240 --> 00:25:14,439 Speaker 13: I worked with him for about a year when he 461 00:25:14,480 --> 00:25:16,560 Speaker 13: was just starting out in Silicon Valley. He's going to 462 00:25:16,560 --> 00:25:18,240 Speaker 13: be good at PRIs Silicon Valley. He's going to be 463 00:25:18,320 --> 00:25:21,119 Speaker 13: good for the country because he is pro growth, he 464 00:25:21,240 --> 00:25:25,560 Speaker 13: is pro innovation, and he's also pro eliminating those regulations 465 00:25:25,560 --> 00:25:27,879 Speaker 13: that strangle industry, that strangle growth. 466 00:25:29,240 --> 00:25:31,840 Speaker 5: Let's get the take of Teddy Goff, co founder and 467 00:25:31,920 --> 00:25:35,359 Speaker 5: managing partner at the strategy of marketing agency Precision, which 468 00:25:35,359 --> 00:25:38,280 Speaker 5: advises world leaders. But you're also the digital director for 469 00:25:38,320 --> 00:25:40,560 Speaker 5: President Obama as a re election campaign, so we can 470 00:25:40,600 --> 00:25:43,320 Speaker 5: garner some of a political affiliation from that, Teddy and 471 00:25:43,640 --> 00:25:45,920 Speaker 5: I want to get your take on what it means 472 00:25:45,960 --> 00:25:49,560 Speaker 5: to have potentially a venture capitalist in the White House. 473 00:25:49,760 --> 00:25:52,000 Speaker 5: How much do you think that there will be real 474 00:25:52,480 --> 00:25:55,400 Speaker 5: changes to policy making for innovation of small companies. 475 00:25:57,280 --> 00:25:58,760 Speaker 8: Well, thanks for having me. 476 00:25:58,840 --> 00:25:59,960 Speaker 14: You know, first of all, I think the most import 477 00:26:00,160 --> 00:26:02,399 Speaker 14: thing is whether there is a change in administration or not. 478 00:26:03,160 --> 00:26:05,199 Speaker 14: You know, obviously, as you were just talking about in 479 00:26:05,200 --> 00:26:08,359 Speaker 14: the previous segment, when it comes to former President Trump 480 00:26:08,400 --> 00:26:12,080 Speaker 14: potentially future president Trump, there's always a degree of volatility, uncertainty, 481 00:26:12,520 --> 00:26:15,119 Speaker 14: there's always palace intrigue. It's not exactly clear that his 482 00:26:15,200 --> 00:26:17,360 Speaker 14: vice president is going to have all that much influence 483 00:26:17,359 --> 00:26:17,760 Speaker 14: over him. 484 00:26:17,760 --> 00:26:19,800 Speaker 8: Certainly his first vice president did not. 485 00:26:20,480 --> 00:26:23,080 Speaker 14: But you know, I think it'll be broadly good for 486 00:26:23,240 --> 00:26:25,679 Speaker 14: much of the tech industry if j Devance becomes vice president. 487 00:26:25,760 --> 00:26:28,680 Speaker 14: He's a sort of of that community, or at least 488 00:26:28,720 --> 00:26:30,520 Speaker 14: in the past few years in his career, and he 489 00:26:30,600 --> 00:26:34,159 Speaker 14: shares some of their interests, I think, particularly with respect 490 00:26:34,200 --> 00:26:38,160 Speaker 14: to deregulating AI and cryptocurrency. I do think it's worth 491 00:26:38,359 --> 00:26:42,480 Speaker 14: keeping in mind that the tech industry is non monolithic. 492 00:26:42,720 --> 00:26:46,320 Speaker 14: There are deep divides within the tech industry, and you know, 493 00:26:46,440 --> 00:26:49,000 Speaker 14: by definition, the Republican Party isn't in lockstep with them 494 00:26:49,000 --> 00:26:50,840 Speaker 14: on all of those issues. So, you know, I think 495 00:26:50,880 --> 00:26:57,040 Speaker 14: when it comes to deregulation, tax policy, AI, cryptocurrency, there 496 00:26:57,160 --> 00:26:59,200 Speaker 14: is you know, some degree of consonants between what a 497 00:26:59,280 --> 00:27:00,240 Speaker 14: Jdvans wants. 498 00:27:00,040 --> 00:27:01,480 Speaker 8: And what much of the tech industry wants. 499 00:27:01,560 --> 00:27:05,640 Speaker 14: But when it comes to Section two thirty, privacy, even competition, 500 00:27:05,720 --> 00:27:08,639 Speaker 14: to some degree, they're going to be at odds. And 501 00:27:08,720 --> 00:27:10,600 Speaker 14: so you know, I think this is going to be 502 00:27:10,640 --> 00:27:12,960 Speaker 14: good for the tech industry in certain ways and you know, 503 00:27:13,080 --> 00:27:13,919 Speaker 14: bad for them and others. 504 00:27:15,000 --> 00:27:18,159 Speaker 6: Teddy, Good Morning's ED in San Francisco. Let's talk a 505 00:27:18,160 --> 00:27:20,959 Speaker 6: little bit about TikTok. You just heard our analysts Man 506 00:27:21,000 --> 00:27:25,640 Speaker 6: deep sing outline a thesis not just as a means 507 00:27:25,720 --> 00:27:29,760 Speaker 6: of political communication, but a point of policy. How much 508 00:27:29,800 --> 00:27:33,480 Speaker 6: do you think the American voter cares about TikTok? What 509 00:27:33,640 --> 00:27:36,200 Speaker 6: may or may not happen in either outcome. One hundred 510 00:27:36,200 --> 00:27:39,080 Speaker 6: and seventy million Americans use TikTok, and we always say 511 00:27:39,080 --> 00:27:40,639 Speaker 6: on this show that many of them that use it 512 00:27:40,720 --> 00:27:43,680 Speaker 6: quite like it, and so I just find that interesting. 513 00:27:43,960 --> 00:27:46,560 Speaker 6: It's a world, you know, and I wonder how critical 514 00:27:46,600 --> 00:27:49,080 Speaker 6: you think it will be in this presidential election cycle. 515 00:27:50,560 --> 00:27:52,960 Speaker 14: You know, the reality is that, you know, we're a 516 00:27:52,960 --> 00:27:55,119 Speaker 14: country where you have essentially two options as to who 517 00:27:55,160 --> 00:27:58,440 Speaker 14: they vote were, and you've got dozens of issues upon 518 00:27:58,520 --> 00:28:02,080 Speaker 14: which to assess those options. So it's difficult for any 519 00:28:02,119 --> 00:28:06,760 Speaker 14: individual issue to change people's minds. Even abortion may not 520 00:28:06,840 --> 00:28:09,879 Speaker 14: be a decisive voting issue for all that many people, 521 00:28:09,880 --> 00:28:11,760 Speaker 14: as you know, kind of dominant in the culture as 522 00:28:11,800 --> 00:28:15,000 Speaker 14: it is. That being said, elections in this country tend 523 00:28:15,000 --> 00:28:17,399 Speaker 14: to be one on the margins. There are certainly a 524 00:28:17,440 --> 00:28:18,880 Speaker 14: lot of young people who don't want to have their 525 00:28:19,119 --> 00:28:22,119 Speaker 14: TikTok taken away from them. It may impact some of 526 00:28:22,160 --> 00:28:25,000 Speaker 14: their votes, but again, you know, they're they're looking at 527 00:28:25,119 --> 00:28:26,840 Speaker 14: all of these issues and this you know, kind of 528 00:28:27,119 --> 00:28:30,760 Speaker 14: unprecedentedly deep divide between the you know, between the two parties, 529 00:28:30,800 --> 00:28:32,679 Speaker 14: and you know, I think there probably aren't all that 530 00:28:32,720 --> 00:28:34,199 Speaker 14: many for whom this would be the one issue that 531 00:28:34,200 --> 00:28:36,080 Speaker 14: gets them from from one side to the other. If 532 00:28:36,080 --> 00:28:37,720 Speaker 14: there is, though, you know, I think it's going to 533 00:28:37,760 --> 00:28:41,240 Speaker 14: benefit Trump, you know, because you know, these young people 534 00:28:41,280 --> 00:28:42,880 Speaker 14: who love their TikTok don't want to take it away, 535 00:28:42,880 --> 00:28:45,720 Speaker 14: and he's the one guy saying not to do it and. 536 00:28:46,360 --> 00:28:47,440 Speaker 4: Also using it. 537 00:28:47,680 --> 00:28:50,960 Speaker 5: And I'm interested as a digital director and port formal 538 00:28:51,000 --> 00:28:53,920 Speaker 5: life and still advising with precision. 539 00:28:54,480 --> 00:28:56,240 Speaker 4: How much should you be leaning into. 540 00:28:56,120 --> 00:28:58,320 Speaker 5: Various parts of the social media spectrum right now? 541 00:28:58,400 --> 00:28:59,840 Speaker 4: How much also have you got. 542 00:28:59,680 --> 00:29:03,640 Speaker 5: To be thinking about artificial intelligence muddying the way in 543 00:29:03,680 --> 00:29:06,800 Speaker 5: which come individuals consume that content. 544 00:29:08,040 --> 00:29:10,160 Speaker 14: Well, I think every candidate for office has got to 545 00:29:10,160 --> 00:29:12,760 Speaker 14: be on social media, and I think putting to the 546 00:29:12,800 --> 00:29:15,080 Speaker 14: side whether you do or don't assess TikTok as a 547 00:29:15,240 --> 00:29:17,120 Speaker 14: national security risk, and obviously that's a tough thing to 548 00:29:17,120 --> 00:29:20,280 Speaker 14: put to the side. It's an absolutely critical communications platform, 549 00:29:20,320 --> 00:29:22,880 Speaker 14: as you were just saying, it's where almost all of 550 00:29:22,880 --> 00:29:25,720 Speaker 14: America's young people spend their time, you know, a huge 551 00:29:25,720 --> 00:29:28,960 Speaker 14: amount of time. They're not necessarily their for news, but 552 00:29:29,000 --> 00:29:30,760 Speaker 14: they're going to get news while they're there, and more 553 00:29:30,800 --> 00:29:33,400 Speaker 14: broadly than just political news, they're going to get cultural information. 554 00:29:33,480 --> 00:29:35,960 Speaker 14: It's going to shape what they think about, you know, 555 00:29:36,040 --> 00:29:40,320 Speaker 14: the culture wars written large and so you know, Democrats 556 00:29:40,320 --> 00:29:42,520 Speaker 14: Republicans too have to have to play there, you know. 557 00:29:42,560 --> 00:29:45,080 Speaker 14: I think though the truth of the matter is that 558 00:29:45,120 --> 00:29:47,520 Speaker 14: no individual account is going to be able to get 559 00:29:47,520 --> 00:29:49,920 Speaker 14: that much traction on TikTok. Let's just not how the 560 00:29:49,920 --> 00:29:52,840 Speaker 14: platform works, and there's too many creators, too much content, 561 00:29:52,880 --> 00:29:55,720 Speaker 14: and too many people spending too much time. So, you know, 562 00:29:56,280 --> 00:29:59,360 Speaker 14: the question, I think is more broadly than just you know, 563 00:29:59,440 --> 00:30:03,280 Speaker 14: one account. How can political movements generate lots and lots 564 00:30:03,280 --> 00:30:07,000 Speaker 14: of voices that you know, that can accrete to lots 565 00:30:07,000 --> 00:30:09,280 Speaker 14: and lots of you know, eyeballs upon their you know, 566 00:30:09,360 --> 00:30:09,800 Speaker 14: upon their. 567 00:30:09,720 --> 00:30:13,080 Speaker 6: Point of view, Teddy, you advised Obama on social strat 568 00:30:13,120 --> 00:30:16,680 Speaker 6: in his reelection. The weekend's events, the assassination attempt showed 569 00:30:16,720 --> 00:30:20,480 Speaker 6: the risk of social media, the spread of misinformation. Does 570 00:30:20,520 --> 00:30:22,520 Speaker 6: ire the campaign have a handle on how to use 571 00:30:22,520 --> 00:30:23,080 Speaker 6: it safely? 572 00:30:25,160 --> 00:30:27,360 Speaker 14: Well, my opinion, of course, is that one of the 573 00:30:27,400 --> 00:30:29,560 Speaker 14: two campaigns has no interest in in using it safely. 574 00:30:29,640 --> 00:30:32,360 Speaker 14: And I don't want to come across as a as 575 00:30:32,360 --> 00:30:34,560 Speaker 14: a hyperpartisan, but I just think there's lots of evidence 576 00:30:34,600 --> 00:30:38,080 Speaker 14: to that effect. You know, I think, you know, the 577 00:30:38,200 --> 00:30:40,920 Speaker 14: truth of the matter is, I think that disinformation is 578 00:30:41,040 --> 00:30:44,360 Speaker 14: really really hard to counter, and there's been lots of 579 00:30:44,360 --> 00:30:48,320 Speaker 14: academic research into this, lots of you know, political experiments done, 580 00:30:48,480 --> 00:30:49,840 Speaker 14: lots of corporate experiments done. 581 00:30:49,960 --> 00:30:51,600 Speaker 8: You can try fact checks, you can. 582 00:30:51,480 --> 00:30:55,680 Speaker 14: Try you know, warnings, you can try, you know, all 583 00:30:56,040 --> 00:30:59,959 Speaker 14: the various sort of disinformation mitigation techniques that are out there, 584 00:31:00,280 --> 00:31:02,360 Speaker 14: and the fact of the matter is it's still powerful, 585 00:31:02,400 --> 00:31:05,640 Speaker 14: and once it's out there, it tends to sink in 586 00:31:05,680 --> 00:31:08,320 Speaker 14: people's minds, and more broadly, it tends to just make 587 00:31:08,360 --> 00:31:10,760 Speaker 14: people question what is and isn't true. And I think 588 00:31:10,880 --> 00:31:13,480 Speaker 14: the consequence of that is they tend to believe that 589 00:31:13,520 --> 00:31:15,520 Speaker 14: things are true that they want to believe, and disbelieve 590 00:31:15,520 --> 00:31:17,440 Speaker 14: the things that they don't want to believe. And there 591 00:31:17,440 --> 00:31:21,480 Speaker 14: may not be great ways to counter individual pieces of misinformation. 592 00:31:21,960 --> 00:31:23,760 Speaker 14: So what you've got to do as a campaign is 593 00:31:23,840 --> 00:31:25,360 Speaker 14: just try to get your story out there as best 594 00:31:25,400 --> 00:31:27,520 Speaker 14: you can. You know, you keep playing whack them all 595 00:31:27,600 --> 00:31:29,960 Speaker 14: with different pieces of disinformation. They're they're again, they're just 596 00:31:30,000 --> 00:31:31,840 Speaker 14: too hard to counter. You've just got to have the 597 00:31:31,840 --> 00:31:37,200 Speaker 14: most forceful, effective, proactive message you possibly can, and you know, 598 00:31:37,240 --> 00:31:41,320 Speaker 14: obviously hope that that is to you know, to kind 599 00:31:41,320 --> 00:31:44,480 Speaker 14: of overcome the effects of the disinformation that you're going 600 00:31:44,560 --> 00:31:45,760 Speaker 14: to have a very tough time countering. 601 00:31:46,440 --> 00:31:48,880 Speaker 6: Teddy, We're out of time, Teddy Goff, co founder, managing 602 00:31:48,880 --> 00:31:51,160 Speaker 6: partner A Precision, Thank you now coming up on the show, 603 00:31:51,360 --> 00:31:53,680 Speaker 6: we're going to be joined by Chaun Tang, founding partner 604 00:31:54,000 --> 00:31:56,720 Speaker 6: of the Berkeley Skydeck Fund, to discuss the future of 605 00:31:56,760 --> 00:31:59,880 Speaker 6: Silicon Valley and global startup cultures. Coming up next the 606 00:32:00,040 --> 00:32:20,240 Speaker 6: Boombog technology. For today's VC Spotlight, Let's talk about startup 607 00:32:20,360 --> 00:32:24,400 Speaker 6: culture with Sean Tang, founding partner of the Berkeley Skydeck Fund, 608 00:32:24,400 --> 00:32:27,440 Speaker 6: which has eighty five million dollars under management and supports 609 00:32:27,640 --> 00:32:31,480 Speaker 6: entrepreneurial activity through Berkeley Skydeck, which is you see, Berkeley's 610 00:32:31,720 --> 00:32:36,720 Speaker 6: largest and most prominent accelerator. We're familiar with accelerators here 611 00:32:36,760 --> 00:32:39,320 Speaker 6: in the Bay Area. Here in San Francisco, Y combinator 612 00:32:39,720 --> 00:32:43,840 Speaker 6: Jason Calacanis has a similar organization, and we are familiar 613 00:32:43,960 --> 00:32:49,440 Speaker 6: with Stamford Grads GSB. Going into tech, let's start with 614 00:32:49,640 --> 00:32:52,160 Speaker 6: let's say we're less familiar with what Berkeley's doing, but 615 00:32:52,280 --> 00:32:54,640 Speaker 6: it is massive the volume of startups that you are 616 00:32:55,280 --> 00:32:56,400 Speaker 6: founding and supporting. 617 00:32:56,680 --> 00:33:00,440 Speaker 15: Yeah, Ed, I want to say, I'm extremely excited to 618 00:33:00,520 --> 00:33:02,440 Speaker 15: be here and share a little bit more about what 619 00:33:02,600 --> 00:33:07,560 Speaker 15: we're doing at Berkeley. What we've come to realize that 620 00:33:07,640 --> 00:33:11,080 Speaker 15: we have a platform that's a little bit different from 621 00:33:11,080 --> 00:33:13,880 Speaker 15: what you would expect our first look, you would think 622 00:33:13,920 --> 00:33:18,040 Speaker 15: the official incubator platform for a school is meant to 623 00:33:18,040 --> 00:33:21,760 Speaker 15: bring out the talent and the technology from campus. About 624 00:33:21,760 --> 00:33:24,960 Speaker 15: six years ago we had this million, this amazing insight 625 00:33:25,360 --> 00:33:27,400 Speaker 15: that what we want to do is turned our entire 626 00:33:27,880 --> 00:33:32,840 Speaker 15: ecosystem into a giant platform to build companies in general. 627 00:33:33,200 --> 00:33:37,520 Speaker 15: So our doors are now open to founders around the world. 628 00:33:38,080 --> 00:33:43,760 Speaker 15: We're not only inviting our our own students, folks from 629 00:33:43,800 --> 00:33:45,040 Speaker 15: Europe and beyond. 630 00:33:45,560 --> 00:33:50,360 Speaker 5: Interesting now put into context therefore the amount of companies 631 00:33:50,360 --> 00:33:53,920 Speaker 5: that are being birthed where they're going on to follow 632 00:33:53,960 --> 00:33:56,920 Speaker 5: on funding because the statistics are really pronounced. 633 00:33:58,560 --> 00:34:00,920 Speaker 1: Yeah, I think that's exactly right. 634 00:34:01,000 --> 00:34:05,479 Speaker 15: So early stage investment is an extremely challenging thing to do. 635 00:34:06,360 --> 00:34:11,200 Speaker 15: We have four thousand plus companies that are choosing to 636 00:34:11,200 --> 00:34:16,760 Speaker 15: apply to us every single year. We're an extremely exclusive program. 637 00:34:16,880 --> 00:34:20,120 Speaker 15: Only one percent of the four thousand that apply are 638 00:34:20,120 --> 00:34:23,640 Speaker 15: being picked. Of the forty that we then invest in, 639 00:34:24,040 --> 00:34:28,320 Speaker 15: only twenty will raise from institutional investors. Of those, only 640 00:34:28,360 --> 00:34:31,480 Speaker 15: ten will go out and raise a and beyond. We 641 00:34:31,560 --> 00:34:34,400 Speaker 15: have a giant portfolio though, of two hundred plus companies 642 00:34:34,440 --> 00:34:36,319 Speaker 15: that we've invested in, and on the screen what you 643 00:34:36,360 --> 00:34:38,280 Speaker 15: see are some of our huge wins. 644 00:34:38,800 --> 00:34:41,640 Speaker 6: Last summer, Gary Tan came on the show and talked 645 00:34:41,640 --> 00:34:44,239 Speaker 6: about the y Combinator S twenty three batch, and it 646 00:34:44,280 --> 00:34:47,919 Speaker 6: was interesting because they made it mandatory to be in 647 00:34:47,960 --> 00:34:51,200 Speaker 6: person in San Francisco for that class onward, do you 648 00:34:51,239 --> 00:34:53,680 Speaker 6: have any similar rules? You know, you talked about attracting 649 00:34:53,719 --> 00:34:57,160 Speaker 6: talent from outside of the Bay to the Bay. What 650 00:34:57,280 --> 00:34:58,680 Speaker 6: is the point of attraction? 651 00:34:58,920 --> 00:35:02,279 Speaker 15: Absolutely, let's talk about why a founder wants to come 652 00:35:02,320 --> 00:35:05,520 Speaker 15: to us as opposed to YC or to one of 653 00:35:05,280 --> 00:35:06,080 Speaker 15: the other. 654 00:35:07,440 --> 00:35:09,280 Speaker 1: Brands that you have talked about. 655 00:35:09,480 --> 00:35:13,600 Speaker 15: Berkeley is all about giving them introductions to the ecosystem 656 00:35:13,640 --> 00:35:19,080 Speaker 15: here through our grads, our students, our lums, our faculty. 657 00:35:20,040 --> 00:35:23,279 Speaker 15: So when they're in person here, the exposure that they 658 00:35:23,320 --> 00:35:27,000 Speaker 15: get to the top corporates, to the top investors is 659 00:35:27,080 --> 00:35:29,600 Speaker 15: unheard of. So what we ask is that they are 660 00:35:29,640 --> 00:35:32,359 Speaker 15: here in person for most of the six months, they 661 00:35:32,400 --> 00:35:34,440 Speaker 15: live here, and they work here. In a lot of cases, 662 00:35:34,440 --> 00:35:36,680 Speaker 15: they even move their families here. 663 00:35:37,680 --> 00:35:41,560 Speaker 5: Let's just talk about the wins and what industries they're 664 00:35:41,600 --> 00:35:44,040 Speaker 5: shaking up. I mean, I'm going to take a wild 665 00:35:44,080 --> 00:35:47,000 Speaker 5: guess that artificial intelligence is pretty prominent in some of 666 00:35:47,040 --> 00:35:48,760 Speaker 5: the current intake. 667 00:35:49,880 --> 00:35:51,240 Speaker 1: You're completely right, Caroline. 668 00:35:51,560 --> 00:35:55,280 Speaker 15: What we've seen from venture as a category, so AI 669 00:35:55,440 --> 00:35:58,600 Speaker 15: is changing all of our lives in an amazing way. 670 00:35:58,800 --> 00:36:01,840 Speaker 1: It's a disruption a VC. That's what you want to see. 671 00:36:01,880 --> 00:36:05,560 Speaker 15: You want to invest in the industries and the products 672 00:36:05,560 --> 00:36:08,720 Speaker 15: that will change all of our lives over the next 673 00:36:08,800 --> 00:36:12,880 Speaker 15: ten years. So we are extremely excited about all the 674 00:36:13,760 --> 00:36:16,440 Speaker 15: products that will come out in that category. About two 675 00:36:16,520 --> 00:36:20,280 Speaker 15: years ago, we were very early to that game. About 676 00:36:20,800 --> 00:36:24,760 Speaker 15: ten percent or so of our portfolio back in twenty 677 00:36:24,800 --> 00:36:28,200 Speaker 15: twenty two fell into that category. Now in twenty twenty four, 678 00:36:28,719 --> 00:36:30,080 Speaker 15: ninety percent or in AI. 679 00:36:31,920 --> 00:36:34,800 Speaker 5: John, it's great having some time with you, John Tang Panning, 680 00:36:34,800 --> 00:36:36,360 Speaker 5: partner of the Berkeley Skydeck Fund. 681 00:36:36,719 --> 00:36:38,440 Speaker 4: Keep an eye out for some of those. 682 00:36:46,520 --> 00:36:46,840 Speaker 1: Today. 683 00:36:46,920 --> 00:36:51,120 Speaker 5: Another announcement from open ai the debut of GPT four 684 00:36:51,200 --> 00:36:54,080 Speaker 5: O Mini. Now it's the newest model, it's smaller, it's 685 00:36:54,160 --> 00:36:57,200 Speaker 5: cheaper variation of the GPT four O and the. 686 00:36:57,120 --> 00:36:58,680 Speaker 4: Company's most powerful model yet. 687 00:36:58,920 --> 00:37:01,600 Speaker 5: Basically it's for prelacing the older one GPT three point 688 00:37:01,640 --> 00:37:04,640 Speaker 5: five turbo model. Let's bring in Bloomberg Seth Fehman for 689 00:37:04,719 --> 00:37:08,680 Speaker 5: more and look Seth Yay. Cheaper, smaller, I mean, is 690 00:37:08,680 --> 00:37:11,560 Speaker 5: it all about a race to like being the most accessible. 691 00:37:11,160 --> 00:37:11,560 Speaker 4: At the moment. 692 00:37:11,680 --> 00:37:13,200 Speaker 3: Yeah, I mean, I know it's super exciting, and this 693 00:37:13,320 --> 00:37:15,680 Speaker 3: is not GBT five. This is not some breakthrough model. 694 00:37:15,719 --> 00:37:18,880 Speaker 3: It almost feels a kit to smartphone manufacturers releasing a 695 00:37:18,880 --> 00:37:22,040 Speaker 3: wider range of pricing tiers. This is designed to appeal 696 00:37:22,080 --> 00:37:25,200 Speaker 3: to a broader mix of developers and business customers who 697 00:37:25,200 --> 00:37:28,120 Speaker 3: may I need the most expensive, the most robust, the largest, 698 00:37:28,200 --> 00:37:29,320 Speaker 3: large language models. 699 00:37:29,760 --> 00:37:30,480 Speaker 4: But it's not. 700 00:37:30,440 --> 00:37:33,080 Speaker 3: Gonna, you know, change the world at the moment with 701 00:37:33,120 --> 00:37:35,279 Speaker 3: the breakthrough seth. 702 00:37:35,360 --> 00:37:38,360 Speaker 6: When I hear GPT four O Mini, my brain just 703 00:37:38,360 --> 00:37:40,600 Speaker 6: goes straight to like iPod Mini, I'm never going to 704 00:37:40,640 --> 00:37:43,960 Speaker 6: be able to get over that. Open Ai always introduces 705 00:37:44,040 --> 00:37:46,560 Speaker 6: these kind of latest models in interesting ways. I think 706 00:37:46,640 --> 00:37:49,880 Speaker 6: people get some early access to it, right, sometimes journalists, 707 00:37:49,880 --> 00:37:53,600 Speaker 6: sometimes developers. Have we got any feedback on how it's 708 00:37:53,680 --> 00:37:55,279 Speaker 6: working and what it can do? 709 00:37:55,640 --> 00:37:57,359 Speaker 3: Yeah, I mean I think a couple of companies got 710 00:37:57,400 --> 00:37:59,480 Speaker 3: access to this and we heard that it's being used 711 00:37:59,480 --> 00:38:02,120 Speaker 3: to kind of go through received and pull out you know, 712 00:38:02,640 --> 00:38:06,919 Speaker 3: interesting actionable information or help to respond to emails. But again, 713 00:38:07,040 --> 00:38:09,000 Speaker 3: this is just going to feel like a bit irrigant 714 00:38:09,040 --> 00:38:10,960 Speaker 3: from what we know that's already out there. We have 715 00:38:11,080 --> 00:38:12,600 Speaker 3: not personally used it yet, and I think it's really 716 00:38:12,640 --> 00:38:15,280 Speaker 3: important to also note that this is a smaller version 717 00:38:15,360 --> 00:38:18,480 Speaker 3: of a model that largely is not released yet. The 718 00:38:18,520 --> 00:38:21,319 Speaker 3: most high profile features from four to zero, you know, 719 00:38:21,360 --> 00:38:24,359 Speaker 3: the ability to process audio and visual information in real time, 720 00:38:24,600 --> 00:38:26,320 Speaker 3: are really not out there yet because Opening I is 721 00:38:26,320 --> 00:38:29,040 Speaker 3: working through safety issues. So it's a smaller version of 722 00:38:29,080 --> 00:38:30,920 Speaker 3: a largely unreleased prior model. 723 00:38:31,200 --> 00:38:34,160 Speaker 5: And of course there was a fair amount of backlash 724 00:38:34,719 --> 00:38:39,640 Speaker 5: praft the previous announcement Sky for example, where are we on. 725 00:38:39,600 --> 00:38:39,920 Speaker 1: All of this? 726 00:38:40,320 --> 00:38:41,959 Speaker 3: Yeah, I mean we're still waiting for them to start 727 00:38:41,960 --> 00:38:43,600 Speaker 3: through it. I think they've changed the voice in a 728 00:38:43,600 --> 00:38:45,600 Speaker 3: particular one that you're referring to, but right now they're 729 00:38:45,600 --> 00:38:48,840 Speaker 3: still doing a Red Team safety review of the larger 730 00:38:49,000 --> 00:38:52,080 Speaker 3: four O model. We are understanding what the smaller one is. 731 00:38:52,080 --> 00:38:54,160 Speaker 3: It will eventually have many of the same features, but 732 00:38:54,239 --> 00:38:56,719 Speaker 3: as it stands today, it's still a work in progress. 733 00:38:57,080 --> 00:38:59,360 Speaker 5: Seth, we love it. Thank you very much for joining 734 00:38:59,400 --> 00:39:04,440 Speaker 5: all things four Mini. Numbers and names keep evolving. Meanwhile, 735 00:39:04,800 --> 00:39:06,200 Speaker 5: we're just going to take a check in on the market, 736 00:39:06,239 --> 00:39:07,879 Speaker 5: aren't were, Because look, we are. 737 00:39:07,840 --> 00:39:10,719 Speaker 6: Taking another hit today yeah, end of the show, but 738 00:39:10,800 --> 00:39:13,279 Speaker 6: the Nazaq one hundreds down almost percent on a two 739 00:39:13,360 --> 00:39:15,880 Speaker 6: day basis, its biggest two day drop going back to 740 00:39:15,880 --> 00:39:20,120 Speaker 6: October of last year. Recurring themes former President Trump's comments 741 00:39:20,120 --> 00:39:24,080 Speaker 6: to BusinessWeek concerned about the chip sector competition US and China. 742 00:39:24,600 --> 00:39:26,040 Speaker 6: I think it's a story that will stay with US. 743 00:39:26,080 --> 00:39:29,120 Speaker 6: Caro from New York City and San Francisco. With a 744 00:39:29,120 --> 00:39:32,080 Speaker 6: pretty ugly looking stock chart on the screen, this is 745 00:39:32,080 --> 00:39:35,359 Speaker 6: Bloomberg Technology.