WEBVTT - Bloomberg Tech Live From Apple's WWDC Event 0:00:02.560 --> 0:00:13.520 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.560 --> 0:00:17.360 from coast to coast with Caroline Hide in New York 0:00:17.680 --> 0:00:19.680 and ev love Low into sent Francisco. 0:00:21.880 --> 0:00:23.880 This is Bloomberg Tech and Caroline. 0:00:23.520 --> 0:00:24.400 Heid in New York. 0:00:26.400 --> 0:00:29.000 And am Ed Ludlow live in Coopertino from Apple. Is 0:00:29.040 --> 0:00:31.960 the company's biggest product launch event of the year, and 0:00:32.000 --> 0:00:35.320 we're waiting for the next generation of iPhone, smart watches 0:00:35.520 --> 0:00:36.479 and much more character. 0:00:36.640 --> 0:00:39.159 And let's just talk about what Apple is already pricing 0:00:39.159 --> 0:00:41.720 in from a market valuation perspective, ED, I'm looking at 0:00:41.720 --> 0:00:44.360 Apple off by six tens percent, as perhaps we brought. 0:00:44.120 --> 0:00:45.680 The news into this unveil. 0:00:45.800 --> 0:00:48.600 Usually stock does sinc after a product launch, and this 0:00:48.640 --> 0:00:50.960 one is the iPhone seventeen ED. But let's look at 0:00:50.960 --> 0:00:54.120 it on a longer term basis. This company has added 0:00:54.480 --> 0:00:57.920 four hundred and thirty billion dollars in market capitalization since 0:00:57.960 --> 0:00:58.320 the end. 0:00:58.240 --> 0:00:59.200 Of July alone. 0:00:59.280 --> 0:01:02.640 We have really not enough to bring it green in 0:01:02.720 --> 0:01:06.039 a year to date perspective, though, ED. But that's because 0:01:06.080 --> 0:01:09.000 we continue to worry about trade in so many other overhangs. 0:01:11.240 --> 0:01:13.480 The way I think about it was third most valuable 0:01:13.520 --> 0:01:16.679 company half of revenue as iPhone. Apple's biggest product launch 0:01:16.720 --> 0:01:18.520 of the year is today in the company, which has 0:01:18.520 --> 0:01:22.080 fallen behind in the generative AI race, will focus on hardware, 0:01:22.360 --> 0:01:25.000 show off the new iPhone seventeen range. Let's bring in 0:01:25.000 --> 0:01:29.600 Bloomberg's Global Consumer Tech Managing editor Mark German the basics 0:01:29.880 --> 0:01:33.080 seventeen base model, through Pro and Pro maxin in the middle, 0:01:33.280 --> 0:01:37.200 a seventeen air per you're reporting, Explain the features that 0:01:37.240 --> 0:01:39.920 come with the seventeen air mark, but also why does 0:01:39.959 --> 0:01:40.479 that matter? 0:01:41.840 --> 0:01:44.279 The seventeen ear that's going to be the big deal today. 0:01:44.319 --> 0:01:47.480 This is a slim down phone. On paper, it's a 0:01:47.520 --> 0:01:49.920 third thinner than the other new iPhones that you're going 0:01:49.960 --> 0:01:53.440 to see today, and this is an entirely new industrial design. 0:01:53.480 --> 0:01:55.880 It's something brand new for the company. They have not 0:01:56.240 --> 0:01:58.960 done an air phone to this point. Obviously there's the 0:01:59.000 --> 0:02:02.360 Magwook Gear, there's the iPad Air, and now there's going 0:02:02.400 --> 0:02:03.640 to be the iPhone Air. 0:02:03.880 --> 0:02:06.000 This is going to be a pricey. 0:02:05.680 --> 0:02:07.880 Phone, not as pricey as the pro models, but it's 0:02:07.880 --> 0:02:11.120 going to be quite expensive, right somewhere between nine hundred 0:02:11.480 --> 0:02:13.520 and around one thousand dollars, give or take. 0:02:13.880 --> 0:02:16.160 It's going to only have one camera. It's going to. 0:02:16.120 --> 0:02:19.680 Have drastically less battery life than the pro models. 0:02:19.800 --> 0:02:21.120 But this is going to be exciting. 0:02:21.160 --> 0:02:23.639 It's going to get people really interested in the phones 0:02:23.680 --> 0:02:24.120 this year. 0:02:24.280 --> 0:02:26.639 It's going to help draw people to Apple stores. 0:02:26.720 --> 0:02:28.520 It's going to give Apple a way to have a 0:02:28.560 --> 0:02:32.000 big marketing push going to the holiday season. But in 0:02:32.040 --> 0:02:35.040 my view, as I've written, the most popular phones will 0:02:35.040 --> 0:02:38.519 still remain the profones, and those prophones will also still 0:02:38.560 --> 0:02:42.040 be the most practical new iPhones because of the better 0:02:42.080 --> 0:02:43.680 battery life performance and cameras. 0:02:44.000 --> 0:02:45.720 A lot of this, as you told us yesterday, is 0:02:45.760 --> 0:02:48.360 sort of a warm up act to a foldable phone. 0:02:48.400 --> 0:02:51.160 Having to make it as slim as possible and redesigning 0:02:51.160 --> 0:02:53.200 that camera. Tell us about some of the health perks 0:02:53.200 --> 0:02:54.400 that we're going to be getting. You've got a whole 0:02:54.480 --> 0:02:57.560 new lineup of smart watches. We've also got AirPods really 0:02:57.720 --> 0:02:58.600 lifting their game. 0:03:00.000 --> 0:03:02.320 Pods Pro three that is going to be a health 0:03:02.320 --> 0:03:06.040 centric upgrade. Last year they added hearing health features. This 0:03:06.160 --> 0:03:09.200 year they're adding heart health features, so you're going to 0:03:09.280 --> 0:03:11.640 have a heart rate monitor in the air pods for 0:03:11.639 --> 0:03:14.120 the first time. This is interesting for people who want 0:03:14.120 --> 0:03:16.080 to work out with their earbuds, which obviously is an 0:03:16.120 --> 0:03:19.400 extraordinarily common use case, but people who don't have Apple 0:03:19.440 --> 0:03:21.760 watches right the Apple Watch right, if you're like you 0:03:21.800 --> 0:03:23.600 have an Apple Watch, it has a heart rate monitor 0:03:23.639 --> 0:03:26.960 on there, but the total addressable market because of the 0:03:27.000 --> 0:03:31.440 price and the more ubiquitous nature of the earbuds category, 0:03:31.480 --> 0:03:34.320 will bring heart rate to more Apple customers, and if 0:03:34.320 --> 0:03:37.560 you're an Android user, right, you might find that to 0:03:37.600 --> 0:03:39.640 be an easier way to get into the Apple ecosystem 0:03:39.680 --> 0:03:41.480 as well through the air pods. 0:03:41.560 --> 0:03:43.440 So definitely a big upgrade there. 0:03:43.800 --> 0:03:47.000 The smart watches, you're going to see the biggest overhaul 0:03:47.040 --> 0:03:49.080 to the Apple Watch lineup in three years. So you're 0:03:49.080 --> 0:03:51.280 going to see updates to the se which is their 0:03:51.360 --> 0:03:53.560 low cost of three hundred dollars watch. You're going to 0:03:53.560 --> 0:03:56.360 see a Series eleven minor after the big Series ten 0:03:56.440 --> 0:03:58.920 overhaul last year, and then a pretty big update, the 0:03:58.920 --> 0:04:02.080 biggest update ever the Apple Watch Ultra. Slightly bigger screen, 0:04:02.520 --> 0:04:06.560 five G red cap so, faster internet connectivity, big thing 0:04:06.760 --> 0:04:10.360 satellite capabilities. So if you are on the go in 0:04:10.400 --> 0:04:13.040 a mountain range without cellular connectivity and you don't have 0:04:13.080 --> 0:04:14.920 your phone with satellite, now. 0:04:14.800 --> 0:04:16.760 Your watch the Ultra Watch will have it. 0:04:17.240 --> 0:04:21.520 Apple is going squarely today after Fipit and Garmin Mark. 0:04:21.320 --> 0:04:22.520 Pricing is going to be a story. 0:04:22.560 --> 0:04:26.320 I've away right, Either Apple raises prices, passes it onto 0:04:26.360 --> 0:04:29.839 the consumer, or they don't. They eat that cost largely 0:04:29.880 --> 0:04:33.120 relating to tariffs, and then the carriers come in with 0:04:33.200 --> 0:04:33.920 trade in deals. 0:04:33.960 --> 0:04:35.560 What do we know about those three factors. 0:04:36.680 --> 0:04:38.760 Yeah, so the pricing is interesting, You're right. Either way, 0:04:39.040 --> 0:04:42.320 it's going to be noteworthy. It's interesting because Samsung and 0:04:42.400 --> 0:04:45.400 Google both recently rolled out new phones and they did 0:04:45.400 --> 0:04:47.920 not increase their prices. So the precedent is not set 0:04:47.920 --> 0:04:50.480 there for Apple to raise the prices, even though they 0:04:50.480 --> 0:04:52.960 do have the air cover of tariffs. If they do 0:04:53.080 --> 0:04:55.440 raise prices, they're not really going to get into it. 0:04:55.480 --> 0:04:58.280 But if they did, my bet would be they explain 0:04:58.320 --> 0:05:01.080 it away as this is the first redesign, major camera upgrades, 0:05:01.160 --> 0:05:04.080 new processors, whatever, whatever, whatever. They're not going to blame 0:05:04.080 --> 0:05:06.640 Trump and tariffs because we as we all know, that 0:05:06.880 --> 0:05:10.400 is a no no with this administration. In terms of 0:05:10.480 --> 0:05:14.720 carrier deals, I am expecting an extraordinary amount of trade 0:05:14.760 --> 0:05:17.080 in specials in deals from all the. 0:05:17.040 --> 0:05:18.360 Major carriers in the US. 0:05:18.680 --> 0:05:20.479 Apple has been working in the last several months with 0:05:20.520 --> 0:05:23.720 these carriers to ensure that there are major deals in place. 0:05:24.320 --> 0:05:26.320 To me, that implies there will be some tweaks to 0:05:26.360 --> 0:05:29.400 the pricing strategy, and this could be positioned as a 0:05:29.400 --> 0:05:31.400 way to offset any of those changes. 0:05:31.800 --> 0:05:33.960 Bloomos Mark Gunman, who will be with us on the 0:05:34.000 --> 0:05:35.800 network for coverage out throughout the day. 0:05:35.800 --> 0:05:36.400 Thank you very much. 0:05:36.480 --> 0:05:39.080 Let's get more Carly in a Millionacy president and principle 0:05:39.080 --> 0:05:43.120 analyst of creative Strategies. You have a Galaxy S twenty 0:05:43.120 --> 0:05:47.599 five edge handset. It is the Samsung Slim thin phone. Yeah, 0:05:47.640 --> 0:05:50.640 it is a segment. So you've got Mark's reporting there 0:05:50.640 --> 0:05:55.279 on a seventeen air Again, why does it matter for Samsung? 0:05:55.320 --> 0:05:58.200 It was clearly a stepping stone to a much thinner 0:05:58.360 --> 0:06:02.520 fold seven. They didn't put a lot of marketing behind 0:06:02.560 --> 0:06:04.880 the product. To your point, is a segment, it's not 0:06:05.000 --> 0:06:09.400 consumers are screaming for finner phones. But we also haven't 0:06:09.400 --> 0:06:12.560 seen much difference in design for a long time. You know, 0:06:12.600 --> 0:06:14.640 all the phones kind of look the same. The thing 0:06:14.680 --> 0:06:17.320 that changes the most is the back where the camera is. 0:06:17.440 --> 0:06:19.880 So it'd be interesting to see if a rumors are right. 0:06:19.920 --> 0:06:23.080 But Apples is changing that part of the phone because 0:06:23.120 --> 0:06:25.039 it's going to be very obvious that you have a 0:06:25.120 --> 0:06:29.200 new model of your iPhone. But yes, the thinner phone 0:06:29.400 --> 0:06:33.200 is something that vendors seem to be doing to lead 0:06:33.240 --> 0:06:35.880 their way to a foldable which would make me wrong 0:06:35.960 --> 0:06:41.000 about Apple doing affordable iPad before an iphable phone affordable iPhone, 0:06:41.000 --> 0:06:42.240 which was always my theory. 0:06:42.920 --> 0:06:45.640 Your theory unfoldable, though, is one that we listen to 0:06:45.720 --> 0:06:49.080 because eventually we do anticipate a foldable phone from Apple, 0:06:49.400 --> 0:06:52.440 but they lag there behind competition, and of course everyone 0:06:52.480 --> 0:06:54.120 says they lag behind on gender to AI. 0:06:54.200 --> 0:06:55.360 Does that matter to a consumer? 0:06:56.600 --> 0:06:59.680 I don't think that consumers are going into a store 0:06:59.760 --> 0:07:02.159 as in four AI, and I think what plays in 0:07:02.240 --> 0:07:05.279 Apple's favor or what they don't have a tunnel of time, 0:07:05.720 --> 0:07:08.440 is the fact that there's the assurance that when they 0:07:08.480 --> 0:07:13.120 are ready, the software will come with all the phones 0:07:13.160 --> 0:07:16.760 that you already have. So if consumers are drawn to 0:07:16.920 --> 0:07:20.760 this year's models because of a change in hardware design, 0:07:21.280 --> 0:07:23.880 they know they have peace on minding going in and 0:07:23.920 --> 0:07:28.880 buy now knowing that when Apple Intelligence redesign will happen, 0:07:29.280 --> 0:07:31.040 they will have access to it. 0:07:32.240 --> 0:07:35.160 Karly, Now, what do we know from third party data 0:07:35.200 --> 0:07:40.080 from consumer trends about what happened after iPhone sixteen launch, 0:07:40.120 --> 0:07:43.520 particularly on Pro. You heard Mark explain that whatever happens 0:07:43.560 --> 0:07:46.120 with pricing, the carriers will come out and say trade 0:07:46.160 --> 0:07:49.400 in your handset. Lots of people get really frustrated, particularly 0:07:49.240 --> 0:07:51.520 in the USA, where they say, I only just got 0:07:51.520 --> 0:07:53.960 a sixteen Pro. Is there going to be enough in 0:07:54.000 --> 0:07:56.800 the capability to drive me even with a trade in 0:07:56.800 --> 0:07:57.680 to upgrade? 0:07:57.880 --> 0:08:02.120 Yes, last year's upgrade from the carriers were very aggressive. 0:08:02.240 --> 0:08:05.880 The tradeing pricing was really good for consumers. I think, 0:08:06.040 --> 0:08:08.600 as always, you have a segment of the market that 0:08:08.720 --> 0:08:11.080 is going to hold on to their phone no matter what. 0:08:11.320 --> 0:08:13.760 The Where it really makes a difference is the early 0:08:13.760 --> 0:08:18.080 adopters that will get that bump. Usually the hardware redesign 0:08:18.440 --> 0:08:21.360 really drives a lot of upgrades, and I think that 0:08:21.720 --> 0:08:25.040 between what we've see as room or colors and then 0:08:25.080 --> 0:08:28.240 the finn design, people will get into the store. Whether 0:08:28.320 --> 0:08:30.960 or not they'll decide to buy, we'll see depending on pricing. 0:08:31.000 --> 0:08:32.520 As you just discussed with Mark. 0:08:32.600 --> 0:08:34.320 May I ask in a quick fire around how many 0:08:34.400 --> 0:08:35.600 iPhone events have you been to? 0:08:35.840 --> 0:08:38.840 Oh my god since two thousand and seven, so too 0:08:38.840 --> 0:08:39.640 many odd time. 0:08:40.080 --> 0:08:42.199 We always say this is the biggest event for Apple 0:08:42.200 --> 0:08:44.360 in the year. I put it back to basics. iPhone 0:08:44.400 --> 0:08:47.280 is more than half of revenue. But this idea of 0:08:47.280 --> 0:08:50.760 a seventeen generation with a thin and air thrown in 0:08:50.760 --> 0:08:52.920 the middle, where do you think that ranks in the 0:08:52.960 --> 0:08:55.200 history of the sort of storied Apple launches. 0:08:55.720 --> 0:08:58.360 I think is to me, if it's true that this 0:08:58.600 --> 0:09:00.920 is a step in stone to fold, is a moment 0:09:01.080 --> 0:09:03.880 that is going to really fine the next generation. It'll 0:09:03.920 --> 0:09:06.040 be interesting to see how much they get into the 0:09:06.160 --> 0:09:09.840 architecture of the actual device, whatever they change, how they 0:09:09.840 --> 0:09:13.720 are redesigned. Making something thin is really hard when it 0:09:13.720 --> 0:09:17.800 comes to the phone, from battery size to not compromise 0:09:17.800 --> 0:09:21.840 your battery life, which was the biggest drawback for some song, 0:09:22.679 --> 0:09:26.000 and then the camera and the camera capability. You cannot 0:09:26.040 --> 0:09:28.760 have the same camera set as you do on a Promax, 0:09:29.120 --> 0:09:32.520 so how do you reinvent your camera to make sure 0:09:32.559 --> 0:09:34.520 that there's no compromise for people that care? 0:09:35.120 --> 0:09:39.600 Carolina talk to us about caring on wearables. How important 0:09:40.120 --> 0:09:42.960 are the new iterations of their pods of the watch is. 0:09:42.960 --> 0:09:43.520 Going to be for you? 0:09:44.720 --> 0:09:46.920 I think they're really important, and there is the reason 0:09:46.960 --> 0:09:50.040 why Apple always does these three products together because it 0:09:50.120 --> 0:09:54.120 is the trifecta of what being mobile is. I do 0:09:54.160 --> 0:09:58.280 think that the RT rate monitoring on the AirPods, if true, 0:09:58.880 --> 0:10:01.520 is going to be a really interesting for Apple. There 0:10:01.559 --> 0:10:03.960 are people who don't want to wear a watch, or 0:10:04.040 --> 0:10:07.640 people that cannot afford to add that to their list 0:10:07.679 --> 0:10:10.680 of products that they own, and so having AirPods allowing 0:10:10.720 --> 0:10:13.679 you to work out and do what you need, you 0:10:13.720 --> 0:10:18.160 will see, my guess, is a strong upgrade from regular 0:10:18.320 --> 0:10:22.520 AirPods to Airport Pro and so nice revenue uptake for Apple. 0:10:22.880 --> 0:10:26.320 What about to the bottom line, What about pushing up 0:10:26.360 --> 0:10:27.160 the price points for. 0:10:27.200 --> 0:10:31.040 These It'll be interesting to see if they're pushing up 0:10:31.320 --> 0:10:34.320 the price point. I agree totally with market that they 0:10:34.360 --> 0:10:37.120 cannot blame me on tariff if they do. There is 0:10:37.520 --> 0:10:42.200 the president of both Google and Samsung not raising prices, 0:10:42.280 --> 0:10:44.559 so it'll be really hard for them to do that. 0:10:44.800 --> 0:10:47.360 I also do think that they're a moment where they 0:10:47.400 --> 0:10:51.000 want to make sure that they're install based upgrades to 0:10:51.040 --> 0:10:53.920 the latest devices so that they have the latest chipset. 0:10:54.120 --> 0:10:55.600 That at the end of the day is what is 0:10:55.640 --> 0:11:00.199 going to matter for Apple intelligence ANYI in general, you. 0:11:00.120 --> 0:11:02.040 Know when you're setting the Steve jobs theater, what is 0:11:02.080 --> 0:11:04.640 the one thing the absolute focus for you in that 0:11:04.760 --> 0:11:05.880 moment that you're tracking. 0:11:06.720 --> 0:11:10.360 I'm still looking at how Apple brings everything together so 0:11:10.520 --> 0:11:14.160 that consumers stay tied to the ecosystem. That is going 0:11:14.200 --> 0:11:17.080 to be their biggest ticket to winning when it comes 0:11:17.080 --> 0:11:17.559 to AI. 0:11:18.120 --> 0:11:22.040 Currently in a Milanasy, President principal Analystic Creative Strategies, She's 0:11:22.080 --> 0:11:24.800 going to be back on Bloomberg again after Apple's keynote 0:11:24.840 --> 0:11:28.320 this afternoon, so stay tuned. Meanwhile, coming up, Europe's AI 0:11:28.360 --> 0:11:32.200 infrastructure company Nevious soaring after it said it will provide 0:11:32.240 --> 0:11:34.760 Microsoft access to GPU infrastructure capacity. 0:11:35.559 --> 0:11:48.439 This is putting their tech in video. 0:11:48.600 --> 0:11:50.840 It plans to offer a new product design to make 0:11:50.960 --> 0:11:54.000 certain types of AI work more efficient, such as video 0:11:54.040 --> 0:11:58.080 generation and software creation. That The product, called REUBENCPX, will 0:11:58.120 --> 0:11:59.960 debut at the end of twenty twenty six and will 0:12:00.080 --> 0:12:02.280 be offered in the form of cards that can be 0:12:02.320 --> 0:12:06.160 incorporated into existing server computer designs or used in discrete 0:12:06.160 --> 0:12:08.439 computers that can operate separately. 0:12:08.160 --> 0:12:10.600 Alongside other hardware in data centers. 0:12:11.280 --> 0:12:15.240 Elshore A AI a massive infrastructure deal between Microsoft and 0:12:15.280 --> 0:12:18.880 Europe's Nebius worth as much as nineteen point four billion dollars. 0:12:18.920 --> 0:12:23.280 Neocloud nebbiis recently spun off from Russia's tech giant Yandex 0:12:23.520 --> 0:12:27.760 will provide compute to Microsoft from a data center in 0:12:27.840 --> 0:12:30.520 New Jersey. Let's get out to Bloomberg's Matt Day, who 0:12:30.559 --> 0:12:33.559 covers Microsoft for US. And Matt, let's start with what 0:12:33.640 --> 0:12:35.680 Microsoft gets out of this cloud arrangement. 0:12:36.760 --> 0:12:38.520 So they get access to a whole bunch of video 0:12:38.600 --> 0:12:41.960 GPUs that Nebus is said to receive and fire up 0:12:42.000 --> 0:12:45.480 in New Jersey. They also get some optionality, right, They've 0:12:45.480 --> 0:12:47.760 been spending a ton of money on their own data 0:12:47.760 --> 0:12:50.400 center construction. They've also been throwing some to partners. This 0:12:50.520 --> 0:12:52.880 is maybe a way for them to grow that portfolio 0:12:52.960 --> 0:12:54.480 without so much of their risk if they had have 0:12:54.559 --> 0:12:56.079 been buying all the stuff themselves. 0:12:56.559 --> 0:13:00.800 We will Mebbius really making its name in neoc offering 0:13:01.120 --> 0:13:05.200 extraordinary storied business where it spun out of yan Nex. 0:13:05.280 --> 0:13:06.360 Of course, posts. 0:13:06.120 --> 0:13:09.960 Russia's invasion of Ukraine, the CEO backs away and now 0:13:10.040 --> 0:13:13.680 has this new European based juggernaut that's all things AI. 0:13:14.320 --> 0:13:16.199 Yeah, out of nowhere, right, and it's a huge vote 0:13:16.200 --> 0:13:19.120 of confidence in the yandexprass and some of the staffers 0:13:19.120 --> 0:13:23.160 who who left Russia to set up this rebranded holding company. 0:13:23.400 --> 0:13:24.800 They are quite quite a bet on a name that 0:13:24.880 --> 0:13:26.280 just didn't have a whole lot going for it. Here 0:13:26.320 --> 0:13:27.319 a couple of years ago. 0:13:29.880 --> 0:13:31.760 Matt, You've got to get back to your desk because 0:13:31.800 --> 0:13:33.720 in the time you've been in the seat, some news 0:13:33.720 --> 0:13:36.400 from Microsoft a change in rto policy. 0:13:36.480 --> 0:13:37.319 Do you have the details? 0:13:38.120 --> 0:13:40.000 Yeah, it looks like three days a week starting in 0:13:40.040 --> 0:13:42.320 Puget Sound, rolling out later to the rest of the 0:13:42.360 --> 0:13:45.319 US and then abroad. Microsoft have been a pretty a 0:13:45.360 --> 0:13:47.839 pretty lax hand on this sort of recommending two days 0:13:47.880 --> 0:13:49.800 a week, but it really varied by team. Some teams 0:13:49.800 --> 0:13:51.240 had an arty oot at all. So looks like they're 0:13:51.280 --> 0:13:53.040 kind of following some of the some of the folks 0:13:53.080 --> 0:13:54.599 like Amazon, the who have taken a harder line on 0:13:54.640 --> 0:13:55.960 getting folks back into the office. 0:13:56.080 --> 0:13:57.480 I mean, it doesn't seem to set them back in 0:13:57.559 --> 0:13:59.920 terms of market valuation, in terms of performance as far, 0:14:00.760 --> 0:14:03.960 But how much is there the fierce talent wars upon 0:14:04.040 --> 0:14:06.360 Microsoft weighing as well as some of the other names 0:14:06.360 --> 0:14:07.000 that we think about. 0:14:08.040 --> 0:14:10.319 Well, for sure, and I think for some who would 0:14:10.640 --> 0:14:13.120 argue that Microsoft's pres arrangements working well. It's been a 0:14:13.120 --> 0:14:15.920 recruiting advantage for them right particularly here in Seattle, where 0:14:16.080 --> 0:14:18.800 both Microsoft and Amazon are based. You know, you could say, hey, listen, 0:14:18.840 --> 0:14:20.080 if you don't want to have to commute the office 0:14:20.120 --> 0:14:22.440 five days a week, Microsoft's your bet. A little bit 0:14:22.520 --> 0:14:25.000 less advantage there, but they still are relatively flexible by 0:14:25.000 --> 0:14:25.800 big tech standards. 0:14:26.040 --> 0:14:29.200 Bloomberg's Matt Day all things Microsoft and Nevis, we appreciate it. 0:14:29.680 --> 0:14:30.840 Look, let's talk about the. 0:14:30.800 --> 0:14:33.880 Dutch chip making equipment company ASML. Now it's investing one 0:14:33.920 --> 0:14:36.680 and a half billion dollars in France's Mistral AI. 0:14:37.160 --> 0:14:38.520 This is pretty unusual move. 0:14:38.560 --> 0:14:41.560 It's going to allow ASML to incorporate Mistral's generative AI 0:14:41.680 --> 0:14:43.520 services in its own machinery and operations. 0:14:43.800 --> 0:14:46.800 Makes ASML the larger shareholder in Mistral within a Levember 0:14:46.840 --> 0:14:47.320 cent steak. 0:14:47.520 --> 0:14:50.800 Bloomberg's Benoir Buffalo is here for more from Paris. It 0:14:50.920 --> 0:14:54.400 is the pin up generative AI business Mistral for France. 0:14:54.920 --> 0:14:57.880 ASML coming in taking such a stake, what does it 0:14:57.920 --> 0:14:58.920 mean for the French government. 0:15:01.920 --> 0:15:05.080 It's obviously super important to French and I would say 0:15:05.080 --> 0:15:08.920 to European tech because now Mistral is probably the only 0:15:09.560 --> 0:15:15.280 European tech startup that's doing language models AI language models 0:15:15.280 --> 0:15:18.600 and that has a full suite of products also doing 0:15:18.640 --> 0:15:21.720 computing here, So it's definitely key. 0:15:21.960 --> 0:15:24.400 And key is also the fact. 0:15:24.120 --> 0:15:30.680 That it's a European tech giant, ASML investing in Mistral. 0:15:31.040 --> 0:15:35.800 Mistral previously got back in from US venture funds people 0:15:35.800 --> 0:15:38.120 who are doubting that they could continue to grow and 0:15:38.200 --> 0:15:42.880 raise capital with the European backers, and this is the 0:15:42.920 --> 0:15:46.280 case now, and it's important for Mistral because obviously we've 0:15:46.320 --> 0:15:51.120 got these giants like open Ai and the x et 0:15:51.200 --> 0:15:55.800 cetera doing the leading language models now, but there are 0:15:55.880 --> 0:16:00.840 European companies choosing to cut deals with Mistral because they're 0:16:00.880 --> 0:16:06.240 European and they see it as a sovereignty or strategic 0:16:06.280 --> 0:16:13.000 independence issue to make this contract and it's important for 0:16:13.040 --> 0:16:16.360 them for this reason. So it's extremely key for that reason. 0:16:16.440 --> 0:16:22.120 Yeah, Ben, While SML participated in that broader funding round, 0:16:22.240 --> 0:16:26.120 valuing Mistrau at almost twelve billion euros, that's the finance part. 0:16:26.480 --> 0:16:29.520 But there's a technology story here too, right, What is 0:16:29.520 --> 0:16:33.400 it that each company is partnering on in the technology sense. 0:16:34.040 --> 0:16:34.120 So. 0:16:35.880 --> 0:16:38.280 In a way they are on both ends of the 0:16:38.360 --> 0:16:42.480 AI value chain right, ALSML, it is really at the 0:16:42.520 --> 0:16:47.320 top of the value chain, really doing these very powerful 0:16:47.400 --> 0:16:50.360 and sophisticated machines, the only one in the world to 0:16:50.360 --> 0:16:55.520 do these machines, allowing chip makers to do very advanced chips. 0:16:55.960 --> 0:17:00.360 They have Nvidia, they are powering Nvida for example. Stroll 0:17:00.520 --> 0:17:04.560 is really at the end selling AI AI products. So 0:17:05.160 --> 0:17:08.240 Mistral for example, is a customer of Nvidia because they've 0:17:08.240 --> 0:17:11.640 got data centers that they're building in Europe to train 0:17:11.720 --> 0:17:16.159 their models. So what they say of this deal, it's 0:17:16.200 --> 0:17:18.479 a bit of a surprising deal in a way. What 0:17:18.560 --> 0:17:21.440 they say on ICML sides is that it's going to 0:17:21.480 --> 0:17:24.800 be for them a way to incorporate AI into the 0:17:24.880 --> 0:17:29.040 whole company, and ASML is going to use Mistral AI 0:17:30.200 --> 0:17:34.840 to improve the scanning of data to improve really it's 0:17:34.920 --> 0:17:39.320 core products, to improve efficiency. So that's what they're telling 0:17:39.359 --> 0:17:41.920 for now, but it's going to be interesting to follow 0:17:41.960 --> 0:17:43.920 what they're going to do, and they might use other 0:17:44.160 --> 0:17:48.359 AI companies, but they choose Mistral, and they choose to 0:17:48.400 --> 0:17:50.119 back this company. 0:17:49.760 --> 0:17:51.160 Well and immediately made every one thing. 0:17:51.240 --> 0:17:53.960 Maybe SML eventually wants to buy it, but there was 0:17:54.000 --> 0:17:55.800 pushback from the CEO. 0:17:55.560 --> 0:17:55.880 On that. 0:17:58.320 --> 0:17:59.000 Yeah, he said. 0:17:59.040 --> 0:18:03.640 They don't want to win corporate every technology they use, 0:18:04.160 --> 0:18:07.880 they don't want to integrate that into their company. So 0:18:08.320 --> 0:18:10.840 it looks like a put back, a pushback for sure. 0:18:11.240 --> 0:18:15.840 The founders of Mistrall and employees Mistral says they still 0:18:15.840 --> 0:18:20.080 have the majority of the company, so for surely it 0:18:20.119 --> 0:18:21.480 doesn't seem to be undergouts. 0:18:21.520 --> 0:18:23.399 It's already a very sizable. 0:18:23.119 --> 0:18:26.359 Investment for SML because they haven't done that kind of 0:18:27.119 --> 0:18:31.360 venture deals before, so it's already something unusual for them 0:18:31.400 --> 0:18:32.040 in a way to do. 0:18:32.320 --> 0:18:35.240 Bloomberg spend war Butelo in Paris, thank you very much. 0:18:41.000 --> 0:18:44.119 Attack association funded by the likes of Battle, Google and 0:18:44.160 --> 0:18:46.840 other major tech companies, when it's launching a new initiative 0:18:46.880 --> 0:18:50.800 to strengthen the freight relationship between Democrats and Silicon Valley, 0:18:50.920 --> 0:18:53.600 all ahead of the twenty twenty six midterm elections, and 0:18:53.720 --> 0:18:56.760 Bloomberg's Emily Burnbaun, who covers corporate lobbying for US, has 0:18:56.760 --> 0:18:59.919 that story. It looks support for the Trump administration is 0:19:00.080 --> 0:19:02.919 spiked among tech executives. So what does the Chamber of 0:19:02.960 --> 0:19:04.440 Progress hope to achieve here? 0:19:05.320 --> 0:19:08.520 Yes, they say that that movement, that right word shift 0:19:08.600 --> 0:19:11.640 in Silicon Valley is in part due to a reaction 0:19:11.800 --> 0:19:15.480 to the Biden administration's policies, which were much more skeptical 0:19:15.480 --> 0:19:20.160 and critical of big tech and AI companies. So they 0:19:20.200 --> 0:19:24.119 say we're here to do some relationship counseling. You know, 0:19:24.280 --> 0:19:27.600 Silicon Valley was once associated with Democrats. They want to 0:19:27.600 --> 0:19:30.520 bring us back to that more you know, Obama tech 0:19:30.560 --> 0:19:31.160 friendly era. 0:19:32.480 --> 0:19:34.919 Emily, I'm live here at Apple Park and Cupertino, And 0:19:34.960 --> 0:19:37.119 in the story we note that Apple is one of 0:19:37.160 --> 0:19:40.720 a number of technology companies helping to fund this association. 0:19:41.720 --> 0:19:43.520 In the last week, we've seen Tim Cook at the 0:19:43.520 --> 0:19:48.360 table with the President discussing the almost quid pro coo 0:19:48.440 --> 0:19:51.080 of investing in America in return for sort. 0:19:50.960 --> 0:19:53.360 Of policy relief. I gave you that backdrop, Souse. 0:19:53.359 --> 0:19:56.520 I just want to understand who's involved here on the 0:19:56.520 --> 0:20:01.000 company side and the democratic side, away from the association itself. 0:20:01.560 --> 0:20:08.600 Yeah, the association has hired a Democrat who has relationships 0:20:08.600 --> 0:20:11.760 with tech companies. So that's Dave Borland from the Department 0:20:11.800 --> 0:20:12.400 of Defense. 0:20:13.080 --> 0:20:13.800 And when I. 0:20:13.800 --> 0:20:18.600 Asked which company specifically signed off on this, you know, 0:20:18.720 --> 0:20:23.720 democratic project held under the Chamber of Progress, they said 0:20:23.760 --> 0:20:26.639 they couldn't say specifically, but They pointed to their members. 0:20:26.680 --> 0:20:27.920