WEBVTT - Alibaba Earnings and Tesla FSD Test Drive 0:00:01.400 --> 0:00:02.120 From the heart. 0:00:02.279 --> 0:00:06.720 We're Innovation, Money and Power co lie in Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.559 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:25.360 --> 0:00:28.520 Live from New York and San Francisco. This is Bloomberg Technology. 0:00:28.920 --> 0:00:32.479 I mean up tech winners and losers. The latest earnings 0:00:32.520 --> 0:00:34.680 that investor moves as saw Us and Drug and Miller. 0:00:34.960 --> 0:00:36.840 Will they sell out before the sell off? 0:00:37.760 --> 0:00:41.680 And the Tesla analysts who almost crashed using FSD is 0:00:41.760 --> 0:00:44.280 back with another review of the tech. We speak to 0:00:44.320 --> 0:00:45.520 truists William Stein. 0:00:45.880 --> 0:00:49.239 Defense Tech is in focus a massive fundraise for Andreil. 0:00:49.600 --> 0:00:51.200 We speak with its executive. 0:00:50.840 --> 0:00:54.120 Chair and VC back at about the whopping fourteen billion 0:00:54.160 --> 0:00:58.360 dollar valuation of US. We've got George Soros, You've got 0:00:58.400 --> 0:01:01.480 standing Druck and Miller both are investment firms actually wanted 0:01:01.520 --> 0:01:04.200 to trim their holdings in the Magnificent seven stocks before 0:01:04.319 --> 0:01:06.959 the major downturn in such tech names. Back in mid 0:01:07.000 --> 0:01:09.880 July by Prescient for more on the story and other 0:01:09.920 --> 0:01:13.480 investor moses bring in Bloemberg's Hemma Palmer's joining us on 0:01:13.520 --> 0:01:16.760 the daily at the moment, Hemma, Look, it does feel 0:01:16.800 --> 0:01:18.640 like they managed to cool this a little bit. 0:01:19.400 --> 0:01:20.959 Tell us about the names that they trimmed. 0:01:21.120 --> 0:01:23.640 Yes, so we care about these titans of the industry, 0:01:23.680 --> 0:01:25.120 billionaire investors. 0:01:25.600 --> 0:01:26.880 They sold some of their steak. 0:01:27.040 --> 0:01:30.000 George Sore sold some of his steak in Alphabet and Amazon, 0:01:30.600 --> 0:01:34.120 so some prescient moves there. Stanley drugg and Miller sold 0:01:34.160 --> 0:01:35.880 some of his exposure to Nvidia. 0:01:36.720 --> 0:01:38.120 Also quite interesting. 0:01:38.680 --> 0:01:42.360 David Tepper and other Family office investor, former Hedgepooter manager 0:01:42.959 --> 0:01:45.920 cut some of his steak in Amazon and Microsoft and Meta. 0:01:46.040 --> 0:01:49.680 So we do see some trimming of those tech positions 0:01:49.720 --> 0:01:51.920 ahead of what was a pretty significant cell off. 0:01:53.000 --> 0:01:55.160 We kind of discussed this twenty four hours ago, Hemmer. 0:01:55.240 --> 0:01:58.000 But you know, they come thick and fast than thirteen 0:01:58.080 --> 0:02:01.000 F filings. You see individual fund names that the stock 0:02:01.040 --> 0:02:03.760 pickers in particular, they go one way or the other. 0:02:03.840 --> 0:02:07.680 But in aggregate, was it a good second quarter for 0:02:08.040 --> 0:02:11.000 technology or a bad second quarter for technology in terms 0:02:11.000 --> 0:02:12.079 of going in and out? 0:02:12.320 --> 0:02:14.280 Yeah, so I would say in aggregate, we did see 0:02:14.320 --> 0:02:17.559 some selling of some tech bets, which for the investors 0:02:17.680 --> 0:02:20.080 was a pretty good move ahead of the volatility that 0:02:20.120 --> 0:02:23.040 we saw. So we did see some selling of Microsoft. 0:02:23.080 --> 0:02:25.360 One hundred and forty hedge funds sold at that steak, 0:02:25.919 --> 0:02:29.639 some trimming of Meta, some trimming of Nvidia. Apple though 0:02:29.720 --> 0:02:32.920 a popular stock buy, the most buying we've seen in 0:02:32.919 --> 0:02:33.760 about three months. 0:02:34.760 --> 0:02:38.680 And like well the Oracle of Omaha, I'm interested in 0:02:38.960 --> 0:02:42.320 the Tiger cubs that we talk about so much. What 0:02:42.400 --> 0:02:44.200 moves have they been making? Have they been making back 0:02:44.240 --> 0:02:46.360 any of the losses basically we've been so accustomed to 0:02:46.360 --> 0:02:46.640 of late. 0:02:46.800 --> 0:02:49.120 Yes, So the performance we did see a little bit 0:02:49.200 --> 0:02:54.160 of a downturn in during the volatility. Not terrible, but 0:02:54.360 --> 0:02:56.680 not great. Every month does matter when it comes to 0:02:56.800 --> 0:02:58.680 these funds that are trying to dig themselves out. 0:02:58.520 --> 0:02:58.960 Of a hole. 0:02:59.240 --> 0:03:02.359 But in terms of their thirty and positioning, some interesting moves. 0:03:02.440 --> 0:03:05.520 United Health seems to be a popular buy for these funds. 0:03:06.080 --> 0:03:08.799 Tiger Global started a brand new position in that company, 0:03:09.200 --> 0:03:13.360 it's seventh largest holding. CO two started a small steak 0:03:13.400 --> 0:03:15.280 a loan Pine Bot some as well too, So you 0:03:15.360 --> 0:03:17.320 netted Health does seem to be a little bit popular. 0:03:17.880 --> 0:03:21.880 D one started a brand new position in XPO, that's 0:03:21.919 --> 0:03:25.280 a logistics company, and that's now D one's fifth largest holding. 0:03:25.560 --> 0:03:27.880 So we do see some kind of interesting moves on 0:03:27.919 --> 0:03:31.720 the margins and companies that are not necessarily traditional. 0:03:31.320 --> 0:03:35.560 Tech, Bloomberg, Semma Palmer, thank you very much. Ali Barber 0:03:35.680 --> 0:03:40.000 reported earning's posting a disappointed four percent rise in revenue, 0:03:40.000 --> 0:03:44.000 even after aggressive promotions to try and drive spending. Joining 0:03:44.040 --> 0:03:47.000 us for more on the China tech earning stories bloombergs 0:03:47.120 --> 0:03:49.640 Isabel Lee. The ADRs are higher though now it's kind 0:03:49.680 --> 0:03:51.560 of interesting when you go from the Asian session into 0:03:51.560 --> 0:03:55.360 the US session. But overall it's sales growth weakness that 0:03:55.400 --> 0:03:56.120 we're worried about. 0:03:56.520 --> 0:03:57.520 It's likely hire. 0:03:58.120 --> 0:04:00.839 I think investors have digested the news overnight, but they're 0:04:00.840 --> 0:04:04.160 still not that thrilled. The four percent rise in revenue. 0:04:04.200 --> 0:04:05.640 You're correct, it was a rise, but it was a 0:04:05.680 --> 0:04:08.600 kneemic and we have profit plunging around twenty seven percent. 0:04:08.640 --> 0:04:11.600 Ali Baba really has just struggled to drive its growth. 0:04:11.600 --> 0:04:14.040 We have Edie Wood, the CEO, who was installed last year, 0:04:14.200 --> 0:04:16.880 making this priority to focus on the twin business of 0:04:16.920 --> 0:04:19.559 cloud computing and commerce. He has also been making bets 0:04:19.560 --> 0:04:21.960 on AI in the long run. But investors have been 0:04:21.960 --> 0:04:25.640 worried that Ali Baba's intense drive to beat its competitors 0:04:25.680 --> 0:04:28.640 pdd in, JD dot Com will compress margins and the 0:04:28.680 --> 0:04:31.880 three way arrivalry among those have been really intensifying for 0:04:31.920 --> 0:04:35.200 a while. And a little quick note, Ali Baba's biggest rival, Tencent, 0:04:35.240 --> 0:04:37.599 reported better than expected earnings, but we did have the 0:04:37.640 --> 0:04:41.080 company warning of weakening consumption and JD dot Com also 0:04:41.120 --> 0:04:43.920 reported better than expected earnings. So it's really Ali Baba 0:04:44.000 --> 0:04:46.680 it's kind of in the backseat for now, but it's 0:04:46.760 --> 0:04:49.119 just one quarter in zooming out. The economy in China 0:04:49.160 --> 0:04:52.719 is still not looking that fantastic it, I mean. 0:04:52.680 --> 0:04:54.720 It's interesting just going back to the thirteen next. So 0:04:54.760 --> 0:04:57.479 we were discussing we understand that Michael Barry, for example, 0:04:57.560 --> 0:05:00.560 has actually been beefing up He's Ali Baba st people 0:05:00.600 --> 0:05:03.960 do believe in a turnaround for this business. Is it 0:05:04.560 --> 0:05:08.640 all to do with ultimately a weak revenue stream a 0:05:08.680 --> 0:05:11.279 weak consumer because they did seem to really put it 0:05:11.279 --> 0:05:14.360 away when it was GMV focused on indeed margin focus. 0:05:14.640 --> 0:05:16.960 Yes, Michael Berry did increase this Ali Baba steak by 0:05:16.960 --> 0:05:19.400 around seven percent, and we also have they have a 0:05:19.440 --> 0:05:22.960 tepper slashing his Ali Baba steak for a little bit, 0:05:23.040 --> 0:05:25.120 but it's still the biggest holding in his company. And 0:05:25.160 --> 0:05:27.800 I think that's really the main question. Would you invest 0:05:27.800 --> 0:05:30.640 in China? Because now it's cheap. We have the other 0:05:30.720 --> 0:05:33.000 end though, saying that they will not invest because it's 0:05:33.080 --> 0:05:35.240 cheap for a reason. If you zoom out, we have 0:05:35.279 --> 0:05:37.920 the latest data from China still showing an economy weakening. 0:05:37.960 --> 0:05:41.159 We have domestic demand faltering, we have property crisis that 0:05:41.320 --> 0:05:45.560 is still prolonged in slumping. So it's really not proving 0:05:45.600 --> 0:05:47.520 to be better. But then if you ask others, they're 0:05:47.560 --> 0:05:49.839 still seeing a bright spot. I mean, no economy goes 0:05:49.920 --> 0:05:51.719 up in a straight line. They see this as a 0:05:51.720 --> 0:05:54.880 blip in China's economy, but still believes that this second 0:05:54.960 --> 0:05:57.839 largest economy in the world will be a bright horizon someday. 0:05:58.480 --> 0:06:01.680 I mean, as we say, David Temper trimming my seven percent, 0:06:01.839 --> 0:06:05.080 Michael Berry, are paying some different views on individual names, 0:06:05.640 --> 0:06:08.599 but I'm interested as so. You know, we were talking 0:06:08.640 --> 0:06:13.600 of Ali Baba more of the rejuvenation, the rerientation, the 0:06:13.600 --> 0:06:15.240 dissecting of this business. 0:06:15.600 --> 0:06:17.320 What does the future look like, how are. 0:06:17.200 --> 0:06:19.599 They managing to stabilize, how are they thinking about ips 0:06:19.640 --> 0:06:21.359 and like any hints thet with. 0:06:21.440 --> 0:06:23.480 The IPOs, it's still unclear, but you can see Ali 0:06:23.560 --> 0:06:26.320 Baba really making a big push into the AI space. 0:06:26.960 --> 0:06:27.840 So that's a good news. 0:06:27.880 --> 0:06:30.160 But the bad news is it's rivals are also doing 0:06:30.200 --> 0:06:32.360 the same and you see the same thing playout here 0:06:32.400 --> 0:06:35.240 in the US, the AI halo, so to speak. But 0:06:35.320 --> 0:06:37.400 now it's kind of fres a little bit. We have 0:06:37.440 --> 0:06:40.440 investors already questioning when they will see the payout of 0:06:40.560 --> 0:06:42.599 their millions of investments into AI. 0:06:42.680 --> 0:06:44.520 But in China the same is playing out. 0:06:44.720 --> 0:06:47.919 Ali Baba has made huge stakes into the AI industry, 0:06:48.120 --> 0:06:50.520 and so has pddnj DO dot Com. And that's why 0:06:50.560 --> 0:06:52.520 I think it will just always be a three way 0:06:52.760 --> 0:06:55.640 rival for those Bloomberg. 0:06:55.120 --> 0:06:57.200 Says a La on the China Tech Beat. Thank you 0:06:57.360 --> 0:07:00.960 very much. Let's discuss whether Ali Baba's should he adjustments 0:07:01.000 --> 0:07:04.040 could position it to recapture market share from the likes 0:07:04.040 --> 0:07:07.279 of PDD and other competitors now with Jacob Cook, CEO 0:07:07.560 --> 0:07:11.440 of WPIC Marketing and Technologies, is a firm which drives 0:07:11.560 --> 0:07:15.480 market expansion for global brands in China but also Japan, 0:07:15.760 --> 0:07:17.840 South Korea and more. And it was interesting I wanted 0:07:17.880 --> 0:07:20.280 to kind of start talking about the e commerce landscape, 0:07:20.280 --> 0:07:23.840 but as Isabelle outlined quite clearly, those same e commerce 0:07:23.920 --> 0:07:29.760 names are increasingly thinking about cloud basically in AI. Good morning, 0:07:29.960 --> 0:07:31.360 the e commerce market in China. 0:07:32.520 --> 0:07:33.080 H good morning. 0:07:33.360 --> 0:07:35.960 It's really signed gone from a two horse race over 0:07:36.000 --> 0:07:38.400 the years between j D and Alibama into a four 0:07:38.440 --> 0:07:43.760 horse race now with China's TikTok, Douian and PDD. What 0:07:43.800 --> 0:07:45.600 we really like to think about the reports that came 0:07:45.640 --> 0:07:47.680 out as we've kind of digested through them, is they're 0:07:47.680 --> 0:07:50.520 actually maybe a little bit disappointing on the overall revenue, 0:07:50.520 --> 0:07:53.960 but should good growth in terms of GMB and up 0:07:54.040 --> 0:07:56.040 until now, a lot of the growth from the competitors 0:07:56.040 --> 0:07:57.880 has actually eaten into a lot of that, so it's 0:07:57.880 --> 0:08:01.880 stabilized there and stabilized with JD. That was a great 0:08:01.880 --> 0:08:04.040 result too as well. So in terms of that landscape, 0:08:04.160 --> 0:08:06.720 JD had a much shorter cycle in terms of changing 0:08:06.760 --> 0:08:09.000 what they wanted to do from the subsidies that they 0:08:09.000 --> 0:08:11.920 were giving away to consumers many years ago to really 0:08:11.960 --> 0:08:15.200 operational efficiencies and getting closer and tighter supply chains. 0:08:15.520 --> 0:08:18.360 So that changed. I think we saw ninety two percent 0:08:18.440 --> 0:08:21.080 increase and profit with them, so that was great. Ali 0:08:21.120 --> 0:08:23.160 Baba's not through that transition yet. 0:08:23.080 --> 0:08:24.920 Eddie, who has been very clear about that that he's 0:08:24.960 --> 0:08:28.640 not really focused on bottom line profits yet until he 0:08:28.720 --> 0:08:31.360 gets a lot of this divergence and restructuring and stuff done, 0:08:31.520 --> 0:08:34.040 and we've seen their GMP hold as well, and I 0:08:34.080 --> 0:08:36.280 think was even up a couple of points, so that's 0:08:36.280 --> 0:08:38.800 been really good. I think that tells us that they're 0:08:38.840 --> 0:08:42.120 probably pretty happy with where they are in their transition. 0:08:42.440 --> 0:08:46.600 Jacob, how destabilizing for the global brands that you represent 0:08:46.840 --> 0:08:49.160 is it when a company such as Eli Webber is 0:08:49.200 --> 0:08:53.079 doing a re orientation or restructuring. How willing are they 0:08:53.160 --> 0:08:55.200 to stay with to try and grow in China at 0:08:55.240 --> 0:08:55.880 the moment. 0:08:56.320 --> 0:08:58.720 I think extremely well. I think Ali Baba has always 0:08:58.760 --> 0:09:02.360 been a very good partner. The people and that you 0:09:02.400 --> 0:09:04.400 know that you end up engaging with as a brand 0:09:04.880 --> 0:09:07.440 under their Hunjo campus are actually very professional and usually 0:09:07.480 --> 0:09:09.040 a lot of the invest in the business in the 0:09:09.080 --> 0:09:12.800 individual categories too. But what was also announced is we're 0:09:12.800 --> 0:09:14.719 going to get a whole bunch more merchant programs too 0:09:14.760 --> 0:09:16.960 as well, and we ways to advertise, So we're excited 0:09:17.000 --> 0:09:21.000 about that level of innovation overall. You know, customer acquisition 0:09:21.080 --> 0:09:23.160 costs that they're fairly stable on team all, and they've 0:09:23.200 --> 0:09:26.080 been relatively attractive for brands to do that. It's been 0:09:26.120 --> 0:09:29.199 actually more destabilizing to have to really rush into these 0:09:29.200 --> 0:09:32.199 other trends at PDD and DOHI in which have completely 0:09:32.240 --> 0:09:34.040 different approaches to e commerce. 0:09:35.800 --> 0:09:40.600 In the moment, JD is the outlier shares rep significantly, right, 0:09:40.840 --> 0:09:43.240 is it the outlier? Is there a point of difference 0:09:43.400 --> 0:09:46.079 in its place in that market and its strategy. 0:09:46.880 --> 0:09:48.760 Yeah, it's a simpler business. 0:09:48.800 --> 0:09:52.199 It doesn't have all of the massive business units that 0:09:52.240 --> 0:09:53.600 Ali Baba does in terms. 0:09:53.440 --> 0:09:55.520 Of especially cloud competing being much larger. 0:09:56.280 --> 0:09:58.280 And they announced really what they were going to do 0:09:58.320 --> 0:10:02.000 with restructuring and off with these subsidies and race for 0:10:02.040 --> 0:10:05.120 customers is really focused on operational efficiencies. 0:10:05.320 --> 0:10:07.079 They did go through a round of management layoffs a 0:10:07.080 --> 0:10:07.840 couple of years. 0:10:07.679 --> 0:10:10.200 Ago, and to us, what we look at is that 0:10:10.440 --> 0:10:12.440 sort of being very successful. And again I think the 0:10:12.480 --> 0:10:14.600 difference is here between the two of them is what's 0:10:14.640 --> 0:10:16.520 going on with Ali Baba and how they're going to 0:10:16.520 --> 0:10:19.040 compete against in the new e commerce landscape is a 0:10:19.080 --> 0:10:22.079 longer transition process, and I see them being about halfway. 0:10:21.720 --> 0:10:22.600 Through that right now. 0:10:23.720 --> 0:10:25.800 What's your main piece of advice for a company that's 0:10:25.840 --> 0:10:28.240 wanting to access e commerce growth in China? 0:10:28.320 --> 0:10:28.720 Right now? 0:10:29.720 --> 0:10:32.360 I think my advice is to actually go for it 0:10:32.400 --> 0:10:34.640 if you've I know, there's a lot of headwinds in 0:10:34.679 --> 0:10:37.200 the economy, especially due to real estate. But if you 0:10:37.320 --> 0:10:40.800 take away you know, luxury goods, which really isn't aligning 0:10:40.800 --> 0:10:43.040 with that new younger consumer that's more into Lulu eleven, 0:10:43.120 --> 0:10:45.640 and you take away durables, which are related to new 0:10:45.640 --> 0:10:46.360 home sales. 0:10:46.640 --> 0:10:49.080 E commerce growth in China is still lower double digits. 0:10:49.080 --> 0:10:51.280 And we saw you know, a Grade six eighteen a 0:10:51.280 --> 0:10:53.960 couple of months ago, and we're all really optimistic about 0:10:54.320 --> 0:10:57.800 eleven eleven in a lot of categories, you know, excluding 0:10:57.800 --> 0:10:58.319 the ones. 0:10:58.120 --> 0:10:58.920 That I just mentioned. 0:10:59.360 --> 0:11:02.840 Jacob Cook, CEO of WPIC Marketing and Technologies, we really 0:11:02.840 --> 0:11:03.840 appreciate the expertise. 0:11:03.880 --> 0:11:04.200 Thank you. 0:11:04.480 --> 0:11:06.720 Coming up, look a closer look at how Google Search 0:11:06.800 --> 0:11:10.240 might be providing the giant with the AI advantage. 0:11:10.679 --> 0:11:21.000 That's next, bomog Technology. 0:11:27.280 --> 0:11:30.160 Taking a look at Google. Following the federal court ruling 0:11:30.240 --> 0:11:33.640 last week that Google is an illegal monopoly, We're taking 0:11:33.800 --> 0:11:37.160 a closer look at the search giant's influence with AI. 0:11:37.320 --> 0:11:40.800 Publishers face a choice between offering up their content for 0:11:40.920 --> 0:11:44.160 use by AI models that can make their sites obsolete 0:11:44.480 --> 0:11:47.720 and disappear from Google Search, which is a top source 0:11:48.000 --> 0:11:50.199 of traffic. Let's break it all down with Bloomberg's Julia Love, 0:11:50.200 --> 0:11:52.520 who joins me here on set. What we're really talking 0:11:52.559 --> 0:11:57.160 about here is web crawler, in other words, a mechanism 0:11:57.240 --> 0:12:00.920 to go through a website's data and persis in search, 0:12:01.960 --> 0:12:04.320 and that gives Google an advantage because some of that 0:12:04.440 --> 0:12:07.079 data ends up in the training of large language models. 0:12:07.160 --> 0:12:08.840 Essentially good Morning in Morning. 0:12:08.960 --> 0:12:11.760 Yes, so Google has been at this for decades now. 0:12:11.880 --> 0:12:16.160 It crawls the web millions of different sites to be 0:12:16.240 --> 0:12:19.800 able to show a detailed index to users, but that 0:12:19.880 --> 0:12:22.280 now gives it an edge over search startups that are 0:12:22.280 --> 0:12:24.560 trying to get into the game because they want to 0:12:24.640 --> 0:12:29.079 crawl too. But many websites block pretty much everyone from 0:12:29.160 --> 0:12:34.040 crawling except for Goodle and Microsoft's bing, and so startups. 0:12:33.600 --> 0:12:38.000 Are at a real disadvantage to choose whether or not 0:12:38.280 --> 0:12:38.800 to crawl. 0:12:38.880 --> 0:12:42.680 Ultimately, Julia, there's also the macro perspective that regulators are 0:12:42.720 --> 0:12:45.440 really worried about this advantage that Google seems to have 0:12:45.520 --> 0:12:47.319 in the world of AI. They already think it's a 0:12:47.360 --> 0:12:49.920 monopoly in search. This might just double down on it. 0:12:51.320 --> 0:12:54.640 Yes, absolutely, I think there's underscores that this is just 0:12:54.760 --> 0:12:58.280 one of many advantages that Goodle continues to have in 0:12:58.320 --> 0:13:02.480 the AI race. Publishers face a difficult choice, and they're 0:13:02.600 --> 0:13:05.959 very worried about the AI overviews that doodle displays at 0:13:05.960 --> 0:13:08.240 the top of search and what that could mean for 0:13:08.280 --> 0:13:10.960 their traffic. But they worry that if they blocked the 0:13:11.000 --> 0:13:14.559 doodle back from crawling, then that will affect their visibility 0:13:14.600 --> 0:13:17.480 of Goodle search, which would just be a death blow. 0:13:17.640 --> 0:13:20.600 And that's said consideration that they don't face with search 0:13:20.640 --> 0:13:24.520 startups like Perplexity, where it's easier to just block the crawler. 0:13:25.800 --> 0:13:28.840 Meanwhile, I think overviews is going live in new countries today. 0:13:28.920 --> 0:13:31.040 Julia Love brilliant to have you. Thank you. 0:13:31.080 --> 0:13:33.840 Now, let's take a look at all of this in 0:13:34.120 --> 0:13:36.560 the context of the reports that Bloomberg has been bringing 0:13:36.600 --> 0:13:39.880 you about the Department of Justice considering breaking up Google. 0:13:40.160 --> 0:13:43.360 It would be a rare antitrust move. It's bringing Sarah Lamb, 0:13:43.400 --> 0:13:47.320 senior fellow at the Technology Policy Institute, and Sarah, we're 0:13:47.360 --> 0:13:51.480 just hearing about, ultimately the fears that AI, the dominance 0:13:51.559 --> 0:13:54.160 that Google has in AI just once again doubles down 0:13:54.160 --> 0:13:57.960 on its monopolistic traits that have already been seen. Do 0:13:58.000 --> 0:14:00.400 you agree with that. Do you think that antitrust breaking 0:14:00.440 --> 0:14:01.200 it up could help? 0:14:02.720 --> 0:14:03.040 Well? 0:14:03.440 --> 0:14:06.880 Right now, we're ten days out after Judge of Meta 0:14:07.120 --> 0:14:10.560 released a ruling on August fifth, after a ten week 0:14:10.600 --> 0:14:15.120 bench trail on US versus Google, and so the talk 0:14:15.160 --> 0:14:19.320 about remedies of possibly breaking up Google, that's all going 0:14:19.400 --> 0:14:23.200 to start September fourth with the remedies hearing. We can 0:14:23.240 --> 0:14:26.880 talk about what those remedies are being floated as, but 0:14:27.000 --> 0:14:30.760 we won't know what the Justice Department recommends until then. 0:14:31.840 --> 0:14:34.080 We won't know. But one of the ideas that we 0:14:34.240 --> 0:14:37.400 reported is on the table, citing sources, right, is the 0:14:37.440 --> 0:14:40.800 divestment of data. If you read the story the original 0:14:40.920 --> 0:14:45.800 port from bluebos near Nyland, that's what is being discussed. 0:14:45.840 --> 0:14:51.160 Maybe you divest it is its own entity. Do you 0:14:51.160 --> 0:14:52.800 see a way that would work in practice? 0:14:52.800 --> 0:14:58.280 Sarah, Well, what's interesting is Android was discussed at the 0:14:58.320 --> 0:15:05.040 Google Pixel event being part of implementing Gemini in with search. 0:15:06.120 --> 0:15:09.040 The Android question is is very interesting because it's a 0:15:09.080 --> 0:15:13.720 global market for Android and the US market is only 0:15:13.760 --> 0:15:17.680 a fraction of who uses Android. It's not clear at 0:15:17.680 --> 0:15:21.600 all that Android is you know, core to the general 0:15:21.640 --> 0:15:27.280 search question in the monopoly trial. So you know, we 0:15:27.320 --> 0:15:33.320 can discuss whether that could help with remedies, but really 0:15:33.400 --> 0:15:37.360 what I think is more likely is that limits on 0:15:37.520 --> 0:15:42.560 exclusive contracts and defaults would would survive or would be 0:15:42.720 --> 0:15:47.480 more reasonable within scope. But definitely people are talking about 0:15:48.440 --> 0:15:53.400 the operating system market, the browser market, how AI fits 0:15:53.400 --> 0:15:56.640 into everything. But one thing to note though is that, 0:15:57.120 --> 0:16:00.480 you know, like Microsoft, the Microsoft case, like AT and 0:16:00.520 --> 0:16:03.280 T case, it's going to take several years for us 0:16:03.360 --> 0:16:09.720 to go through appeal and remedy and settlements. So what 0:16:09.880 --> 0:16:13.440 is AI powered search going to look like in three years, 0:16:13.440 --> 0:16:15.800 four years? I think that's an important question. 0:16:16.880 --> 0:16:21.880 Sarah Olan, Senior Fellow at the Technology Policy Institute, Thank you. 0:16:28.160 --> 0:16:32.280 Is X a failing social network? Well, that's the hypothesis 0:16:32.280 --> 0:16:35.440 come from Bloomberg Opinions Dave Lye saying in his latest 0:16:35.440 --> 0:16:38.040 piece that with a platform losing advertisers even getting under 0:16:38.080 --> 0:16:41.600 increasing e scrutiny from the regulators, social platform quote weeks 0:16:41.680 --> 0:16:46.280 of failing social network syndrome, Bloomberg Opinions Daily is here 0:16:46.320 --> 0:16:50.720 with more and you coin you use reoriented a phrase, 0:16:51.040 --> 0:16:55.520 borrow a pretty famous restaurant critic and repurpose it. 0:16:55.640 --> 0:16:58.320 Look, why does it reek of a failing social platform? 0:16:58.320 --> 0:17:01.280 For many with the Trump discussion, it's one of the 0:17:01.280 --> 0:17:02.560 most active it's been for a while. 0:17:02.760 --> 0:17:05.600 Well, this is a phrase that Antsy Bordain, as you said, 0:17:05.920 --> 0:17:08.520 use to describe restaurants that were going under. And the 0:17:08.560 --> 0:17:10.760 way he described it is it wasn't they'd go under 0:17:11.040 --> 0:17:13.639 overnight or even for a few months or a while. 0:17:13.640 --> 0:17:16.280 But there's something in the air when there's a place 0:17:16.320 --> 0:17:20.280 that isn't quite right. And I said that applies two 0:17:20.480 --> 0:17:22.320 X formerly known as Twitter, of course. 0:17:22.520 --> 0:17:23.440 And it's for many reasons. 0:17:23.760 --> 0:17:26.720 I think what's happened on that network since Elon Musk 0:17:26.720 --> 0:17:29.480 took it over, quite clearly, is it has become almost 0:17:29.480 --> 0:17:33.160 a single issue network for Elon Musk's politics, this issue 0:17:33.160 --> 0:17:35.600 of the culture wars, as we describe it, and what 0:17:36.720 --> 0:17:40.200 is happening less on X is some of the communities 0:17:40.240 --> 0:17:42.520 that made many normal people want to use it in 0:17:42.520 --> 0:17:45.680 the first place. So talking about football, talking about music, 0:17:45.720 --> 0:17:49.119 talking about books, whatever, those communities are finding it harder 0:17:49.160 --> 0:17:51.840 to interact with each other, and certainly no new people 0:17:51.880 --> 0:17:54.320 seem to be joining to joining those discussions in a 0:17:54.320 --> 0:17:56.200 way they might have done previously. 0:17:56.280 --> 0:17:59.280 And look, if you go to your own X page 0:17:59.760 --> 0:18:03.120 have been posting since twenty twenty three. But you're almost 0:18:03.359 --> 0:18:05.520 forced to re engage with the platform for the story, 0:18:05.680 --> 0:18:07.119 and Emil Musk re engage with you. 0:18:07.560 --> 0:18:08.199 Yes, quite so. 0:18:08.240 --> 0:18:10.639 I haven't posted yet for almost a year, and that 0:18:10.720 --> 0:18:13.560 was based on my feelings towards what my feed was 0:18:13.600 --> 0:18:16.560 showing me in terms of the types of content I 0:18:16.600 --> 0:18:20.080 was getting without following certain users, and I didn't feel like. 0:18:20.080 --> 0:18:22.240 It was a yes. 0:18:22.400 --> 0:18:24.320 So, well, this is something that Emil must sink to 0:18:24.359 --> 0:18:29.000 me today or mentioned me about today. I checked my 0:18:29.080 --> 0:18:32.760 screen time. It's actually average of nineteen minutes a day 0:18:32.840 --> 0:18:35.000 this week, and that was only because I downloaded the 0:18:35.040 --> 0:18:38.760 app to listen to his conversation his interview with Donald 0:18:38.800 --> 0:18:40.960 Trump earlier in the week. So without that, which went 0:18:41.000 --> 0:18:43.560 on for almost a couple of hours, I think my 0:18:43.640 --> 0:18:46.240 time on x would be very very minute. I check 0:18:46.280 --> 0:18:48.199 in on it to see what's happening. I'm a journalist, 0:18:48.280 --> 0:18:50.000 of course I need to do that. But in terms 0:18:50.000 --> 0:18:53.400 of engaging with the network, I think it's usefulness has 0:18:53.880 --> 0:18:56.639 gone now, but I think it will. I think it 0:18:56.680 --> 0:18:59.280 will continue in some form for a while. But in 0:18:59.359 --> 0:19:02.119 terms of this useful utility for people, I think that 0:19:02.119 --> 0:19:03.239 that eras behind us. 0:19:04.040 --> 0:19:06.320 Davis, you know, I use x a lot, I spend 0:19:06.320 --> 0:19:08.119 a lot of time on the platform. I share a 0:19:08.160 --> 0:19:11.760 lot of my reporting. I don't see a lot of 0:19:11.840 --> 0:19:15.240 data supportive that video does very well when I show 0:19:15.320 --> 0:19:18.159 video to the content, and it's interesting. One of the 0:19:18.200 --> 0:19:21.560 communities that does well there is Tesla, of course, But 0:19:22.119 --> 0:19:25.439 your issue in the opinion piece is about advertising, advertiser 0:19:25.520 --> 0:19:29.200 flight and money. Does Musk even care about the advertisers? 0:19:29.600 --> 0:19:32.640 Is it even a priority for him to have revenue 0:19:32.640 --> 0:19:33.919 growth as a basic question? 0:19:34.840 --> 0:19:37.000 I mean, look, we've seen what Elon Musk has said 0:19:37.040 --> 0:19:40.480 directly to advertisers in words that we can't repeat on air, 0:19:40.640 --> 0:19:43.159 only to then a couple months later now sort of 0:19:43.160 --> 0:19:47.040 be suing some advertising groups in order to punish them 0:19:47.080 --> 0:19:49.680 for boycotting the platform. I mean, look, I think Elon 0:19:49.760 --> 0:19:52.240 Musk is quite sincere when he says he doesn't care 0:19:52.480 --> 0:19:55.480 if advertisers don't want some advertise on his platform, given 0:19:55.560 --> 0:19:58.920 he thinks it's now this sort of this arena for 0:19:59.000 --> 0:20:01.719 free speech. But the problem is he will need to care, right. 0:20:01.760 --> 0:20:04.600 I mean, this is a website that needs money to survive. 0:20:04.640 --> 0:20:07.880 As as rich as your Musk is, it still needs 0:20:07.920 --> 0:20:11.199 to be a functioning business. And I think that's going 0:20:11.240 --> 0:20:14.080 to be Twitter's problem as we go past the election, 0:20:14.200 --> 0:20:15.760 because right now I think a lot of the attention 0:20:15.840 --> 0:20:18.560 on it is to do with the presidential election. Once 0:20:18.600 --> 0:20:20.880 the votes accounted, people may move. 0:20:20.960 --> 0:20:24.159 Yes, I have a lot of questions about monetizing groc 0:20:24.560 --> 0:20:28.320