WEBVTT - Pinterest Disappoints, AMD Drops & Worldcoin CEO on Digital Identities 0:00:02.320 --> 0:00:05.120 From the heart where innovation, money and power. 0:00:05.240 --> 0:00:10.000 Collie in Silicon Vallet Nbon This is Bloomberg Technology with 0:00:10.119 --> 0:00:12.480 Caroline Hide and Ed Ludlove. 0:00:26.079 --> 0:00:29.320 Amed Ludlow in San Francisco. Caroline Hides off today this 0:00:29.680 --> 0:00:32.879 is Bloomberg Technology coming up full earnings coverage as we 0:00:33.000 --> 0:00:35.760 rat results from pinterest and push your head to Qualcom 0:00:35.880 --> 0:00:38.639 that's out after the bell and speaking of chipmakers, will 0:00:38.720 --> 0:00:42.280 rap results from AMD and look at soft Banks r IPO, 0:00:42.320 --> 0:00:46.760 which is eyeing evaluation of more than sixty billion dollars plus. 0:00:46.840 --> 0:00:48.879 We take a deep dive into the world of crypto. 0:00:49.080 --> 0:00:52.840 We speak to the CEO of the Eyebel Scanning Cryptocurrency 0:00:52.880 --> 0:00:56.880 project World Coin. The earning story. Two names in particular 0:00:56.960 --> 0:00:59.240 that I'm looking at to start with AMD, A beat 0:00:59.280 --> 0:01:02.200 on the top of bottom line against expectations in the court, 0:01:02.200 --> 0:01:05.480 a gone signs of recovery in the PC market. A 0:01:05.600 --> 0:01:09.680 long term projection about the market opportunity for them in 0:01:09.720 --> 0:01:13.480 the context of AI and AI accelerators. Biskunjensavani. It's going 0:01:13.520 --> 0:01:15.280 to join me later in the show to go through 0:01:15.319 --> 0:01:18.440 those numbers and talk about where AMD sits in the 0:01:18.480 --> 0:01:22.040 ecosystem of chip names. Then you've got Pinterest. The story simple, 0:01:22.400 --> 0:01:24.880 the projection it's giving just shows that it's not having 0:01:24.920 --> 0:01:27.480 the same fortune in the ad space that some of 0:01:27.480 --> 0:01:30.560 its peers are. Why why is it not doing as 0:01:30.600 --> 0:01:32.800 well as the likes of Meta? And what is it 0:01:32.880 --> 0:01:36.000 about this platform that's not resonating in the same way 0:01:36.200 --> 0:01:39.000 as some of the ad based social platforms. Well, it's 0:01:39.000 --> 0:01:41.800 got the perfect guest joining us now, analyst Mark Mahaney 0:01:41.840 --> 0:01:45.760 ever caught ISI Senior Managing Director. Mark has an outperformed 0:01:45.840 --> 0:01:49.120 rating on Pinterest with a forty five dollars price target. Mark, 0:01:49.160 --> 0:01:53.360 good morning to you from San Francisco. What's the story 0:01:53.400 --> 0:01:55.160 with Pinterest? To your mind, it's the name you like 0:01:56.480 --> 0:01:57.120 it is, it's. 0:01:56.960 --> 0:01:59.880 Actually when we recently upgraded that so much for the quarter, 0:02:00.040 --> 0:02:03.080 but we're looking forward to a fundamental inflection point. That 0:02:03.160 --> 0:02:07.600 fundamental inflection point requires the overall ad market to rebound 0:02:07.640 --> 0:02:10.320 and to recover, and I think the truth from earning 0:02:10.360 --> 0:02:12.600 season so far is that it really hasn't done that. 0:02:12.880 --> 0:02:16.320 Meta had phenomenally good results, particularly in terms of its 0:02:16.400 --> 0:02:20.080 September quarter outlook, but I think that's mostly very company 0:02:20.120 --> 0:02:21.000 specific factors. 0:02:21.040 --> 0:02:23.160 Meta has a bunch of product cycles that are all. 0:02:23.120 --> 0:02:25.600 Hitting At the same time, they also have the easiest 0:02:25.600 --> 0:02:26.400 comps because they. 0:02:26.280 --> 0:02:27.040 Were most dramatic. 0:02:27.080 --> 0:02:29.399 They were the most of their company most dramatically impacted 0:02:29.440 --> 0:02:33.239 by the Apple privacy changes a year ago. So they's 0:02:33.320 --> 0:02:35.760 kind of a seuey generous case, whereas the other names 0:02:35.760 --> 0:02:39.359 are seeing modest improvement. That's Google, that's Pinterest, especially these 0:02:39.360 --> 0:02:41.880 second tier platforms like Pinterest and Snap, and Snap is 0:02:41.919 --> 0:02:44.640 seeing almost no recovery. They're still declining on a negative 0:02:44.680 --> 0:02:47.160 base to begin with, or the base that was declining 0:02:47.200 --> 0:02:49.120 last year, So we. 0:02:49.040 --> 0:02:49.560 Still need it. 0:02:49.760 --> 0:02:52.600 It's kind of still TBD, but we still like the 0:02:52.639 --> 0:02:54.760 call because we think that eventually we're going to get 0:02:54.760 --> 0:02:57.040 this recovery in the ad market, and then we're seeing 0:02:57.080 --> 0:02:59.720 a lot of initiatives at pinterest that are starting to 0:02:59.760 --> 0:03:04.000 show go off, show up in terms of accelerating user growth, 0:03:04.280 --> 0:03:07.679 nice solid growth and engagement. We just need the advertisers 0:03:07.720 --> 0:03:10.880 to start clicking in, and I think that this partnership 0:03:10.880 --> 0:03:12.919 that they're rolling out with Amazon in the back half 0:03:12.919 --> 0:03:15.720 of the year will kind of unlock that advertiser interest. 0:03:15.760 --> 0:03:18.040 So that's why we're long and we like Pinterest as 0:03:18.080 --> 0:03:18.359 a buy. 0:03:19.480 --> 0:03:22.120 Sales in the court have gone rows six percent to 0:03:22.160 --> 0:03:25.399 seven hundred and eight million dollars for the period ending 0:03:25.480 --> 0:03:29.040 June thirtieth, above street expectations. But I guess to your point, 0:03:29.040 --> 0:03:33.200 if you compare with Meta, Meta delivered double digit percentage growth. 0:03:33.320 --> 0:03:37.760 One part of Meta's story mark was AI driven recommendations 0:03:37.800 --> 0:03:40.280 and that seem to boost the AD side of the 0:03:40.320 --> 0:03:43.640 equation as well. What tools does pinterest have from a 0:03:43.680 --> 0:03:47.560 technology perspective to drive growth both at the user level 0:03:47.560 --> 0:03:50.000 and at the top line. 0:03:49.360 --> 0:03:49.880 Well, they are. 0:03:49.960 --> 0:03:54.360 They also are applying AI to figure out better. 0:03:54.200 --> 0:03:57.000 Which content to put in front of their users, to. 0:03:57.040 --> 0:04:02.760 Help advertisers better target ads and then soon to create 0:04:03.280 --> 0:04:07.920 creative But you step back Meta and Google, you know, 0:04:08.160 --> 0:04:10.840 the biggest at largest AD platforms are going to have 0:04:10.880 --> 0:04:14.080 structural advantages when it comes to AI, and then particularly 0:04:14.120 --> 0:04:17.120 I think Meta has been very aggressive and rightly so 0:04:17.320 --> 0:04:19.919 and smartly so in terms of putting a lot of 0:04:19.920 --> 0:04:22.680 money on a lot of resources behind using machine learning 0:04:22.680 --> 0:04:24.800 and AI over the last couple of years and our 0:04:24.880 --> 0:04:28.160 generative AI to build up, you know, to help out 0:04:28.160 --> 0:04:32.160 marketers find the right audience, monetize i'm sorry, optimize their 0:04:32.160 --> 0:04:35.400 campaigns and do the best targeting and tracking and measurement 0:04:35.520 --> 0:04:39.719 of those campaigns and then also very soon to start 0:04:39.800 --> 0:04:42.440 creating ads and then kind of a b testing on 0:04:42.520 --> 0:04:43.640 that massive scale, which. 0:04:43.440 --> 0:04:44.360 They couldn't do before. 0:04:44.440 --> 0:04:46.240 So I think if you really want to see a 0:04:46.240 --> 0:04:49.960 winner in and that the application of generative AI to 0:04:50.040 --> 0:04:54.120 advertising models, it's probably Meta handover fist and then probably 0:04:54.160 --> 0:04:57.840 Google too. The other players will also benefit, I think, 0:04:57.920 --> 0:05:00.000 just not nearly to the extent that the large scale 0:05:00.080 --> 0:05:02.279 players will. 0:05:02.440 --> 0:05:05.520 Mark bill Ready has been in the CEO role for 0:05:05.640 --> 0:05:09.000 a year. What is your assessment, your scorecard of his 0:05:09.440 --> 0:05:10.400 leadership so far? 0:05:11.640 --> 0:05:14.640 Well, he's implemented a series of changes to try to 0:05:14.640 --> 0:05:18.839 get to regrow the user base and to raise engagement. 0:05:19.800 --> 0:05:21.680 It looks to me like he gets a V plus 0:05:21.720 --> 0:05:24.160 and a minus for doing that. I mean, since he's 0:05:24.240 --> 0:05:26.880 joined the company, you've started to get accelerating user growth again. 0:05:26.920 --> 0:05:29.680 They're doing about four hundred and fifty million maus. It's growing, 0:05:29.920 --> 0:05:31.839 you know, solidly seven percent. 0:05:31.600 --> 0:05:34.080 Year over year. That's pretty good growth for a business 0:05:34.080 --> 0:05:34.800 of that base. 0:05:35.160 --> 0:05:37.800 And you're starting to see more engagement than some of 0:05:37.800 --> 0:05:39.440 the metrics that they talk about. 0:05:39.200 --> 0:05:42.480 Like sessions or saves per user. 0:05:42.520 --> 0:05:44.680 Those are all growing faster than the number of users, 0:05:44.680 --> 0:05:47.200 so you're seeing rising engagement, so he gets kind of 0:05:47.240 --> 0:05:50.000 a B plus a minus for that, which still TBD. 0:05:50.279 --> 0:05:53.760 So whatever that's a B minus is. On the advertiser side, 0:05:53.880 --> 0:05:56.400 there are some numbers he's thrown out about the small 0:05:56.480 --> 0:06:00.240 percentage of pinterest advertisers who've adopted their tools and are 0:06:00.279 --> 0:06:03.240 spending a lot faster, like thirty percent growth year over year. 0:06:03.680 --> 0:06:04.800 I just want to know whether. 0:06:04.600 --> 0:06:07.240 That's going to expand and cover half of the pinterest 0:06:07.279 --> 0:06:10.159 advertiser base, and whether he can really get new types 0:06:10.200 --> 0:06:13.120 of advertisers onto the platform. So that's that's kind of 0:06:13.120 --> 0:06:15.599 what we're really watching for, and it'll be simple. It'll 0:06:15.600 --> 0:06:17.320 show up in the revenue growth numbers, and we won't 0:06:17.360 --> 0:06:19.680 just have revenue growth go from six percent to seven 0:06:19.720 --> 0:06:21.400 percent to eight percent year over year. 0:06:21.640 --> 0:06:24.360 I mean, it should get chunky. It should go fifteen percent, 0:06:24.400 --> 0:06:25.040 twenty percent. 0:06:25.120 --> 0:06:27.400 That would be the real test and the proof of 0:06:27.480 --> 0:06:31.440 whether he's succeeding in terms of getting advertisers to unlocking 0:06:31.440 --> 0:06:32.360 advertisers spend. 0:06:33.360 --> 0:06:36.000 It's I know it's been thirty six hours since Uber 0:06:36.520 --> 0:06:38.560 posted its numbers, but I want to get your take 0:06:38.640 --> 0:06:43.359 a milestone with surprise profitability operating profit on a gap basis, 0:06:43.640 --> 0:06:47.120 but the market seemed to sell the shares on sort 0:06:47.160 --> 0:06:52.159 of longer term growth concerns. How they continue growing, I 0:06:52.160 --> 0:06:54.960 guess at the you know, brider level, but also like 0:06:55.000 --> 0:06:58.240 the future of this business beyond its legacy mark. 0:07:00.279 --> 0:07:02.000 I think you set it up right, except that I 0:07:02.040 --> 0:07:03.680 just layer in one other thing, which. 0:07:03.480 --> 0:07:06.240 Is as we've gone, you know through earning season, it's 0:07:06.279 --> 0:07:08.960 a high bar quarter. That wasn't the case the last 0:07:09.000 --> 0:07:11.520 two quarters. Stocks had been so beaten down last year 0:07:11.520 --> 0:07:14.720 in terms of estimates, cuts and multiple d ratings, and 0:07:15.200 --> 0:07:17.240 you know this year you've had a recovery in a 0:07:17.360 --> 0:07:19.560 small recovery in fundamentals, but you certainly have had a 0:07:19.600 --> 0:07:20.760 recovery in multiples. 0:07:20.880 --> 0:07:22.239 So I just think the bar is higher. 0:07:22.280 --> 0:07:24.680 Even look at Meta, which I would consider the monster 0:07:25.160 --> 0:07:27.880 company report of the of the quarter. I mean, the 0:07:27.960 --> 0:07:31.360 forward guidance was materially better than even the bulls had 0:07:31.360 --> 0:07:34.080 thought was possible, and yet that stock is kind of 0:07:34.320 --> 0:07:36.640 barely holding onto the gains and it's kind of mid 0:07:36.680 --> 0:07:39.520 single digital three four percent gain, So it's. 0:07:39.360 --> 0:07:42.160 A tough bar. This quarter, uber put up a pretty 0:07:42.160 --> 0:07:42.600 good quarter. 0:07:42.640 --> 0:07:45.560 Expectations were high, but there was a little the revenue 0:07:45.600 --> 0:07:47.840 came in a little bit light and so, and I 0:07:47.840 --> 0:07:50.280 think that's mostly due to accounting change, but still it's 0:07:50.320 --> 0:07:52.120 like a little bit of a question mark on a 0:07:52.160 --> 0:07:54.400 stock that's had a major year to date rally. So 0:07:54.400 --> 0:07:55.600 I think you're going to I think there were some 0:07:55.640 --> 0:07:58.880 technical factors in there too, but leaving that aside, I 0:07:58.920 --> 0:08:00.840 think for some of these names, this quarter is going 0:08:00.880 --> 0:08:01.320 to be kind. 0:08:01.200 --> 0:08:03.520 Of a It's not going to be a gap up 0:08:03.560 --> 0:08:05.760 quarter for good numbers. It's going to be a consult 0:08:05.920 --> 0:08:07.840 in terms of the stock, it's going to be. 0:08:07.760 --> 0:08:10.040 A kind of a consolidation quarter, and companies are going 0:08:10.120 --> 0:08:12.760 to kind of be flatish or down mid single digit percent, 0:08:13.120 --> 0:08:14.640 And then we're going to wait and see whether the 0:08:14.640 --> 0:08:18.160 fundamentals continue the improvement in H two that we saw 0:08:18.200 --> 0:08:18.800 in H one. 0:08:18.920 --> 0:08:20.760 If that happens, especially. 0:08:20.440 --> 0:08:23.480 For ad names and online retail names like Amazon, then 0:08:23.480 --> 0:08:25.600 those stocks will go higher. But this is going to 0:08:25.600 --> 0:08:28.640 be a tough quarter for any you had quarter last quarter, 0:08:28.680 --> 0:08:30.840 you had a couple of these names traded up double 0:08:30.880 --> 0:08:32.440 digit percent, ten percent plus. 0:08:32.679 --> 0:08:35.120 I think that's much harder to happen this quarter. I 0:08:35.160 --> 0:08:36.880 think the setup is much tougher. 0:08:37.840 --> 0:08:41.160 Mark Thursday does bring Amazon quickly. What are you expecting 0:08:41.160 --> 0:08:41.800 from Amazon? 0:08:42.840 --> 0:08:44.240 There's three things that matter here. 0:08:44.679 --> 0:08:48.720 Whether the operating margins on the retail business continue to recover. 0:08:48.840 --> 0:08:49.760 I think we'll see that. 0:08:50.120 --> 0:08:54.200 Whether the online retail revenue growth rates kind of stable 0:08:54.240 --> 0:08:56.920 and maybe even start to accelerate based on recent positive 0:08:56.960 --> 0:08:57.560 data points. 0:08:58.000 --> 0:08:58.840 I think we'll see that. 0:08:58.920 --> 0:09:01.760 It's less certain to But then the most important thing 0:09:01.800 --> 0:09:05.160 is whether AWS reaccelerates. We're the way we phrased it 0:09:05.200 --> 0:09:07.320 is well the CFO used the A word i e. 0:09:07.480 --> 0:09:08.319 Is an acceleration. 0:09:08.880 --> 0:09:12.800 And look, if AWS growth reaccelerates, I think you'll see 0:09:12.800 --> 0:09:14.440 a lot of follow through on stock. I think the 0:09:14.480 --> 0:09:16.679 stock can go higher. I just don't know whether they 0:09:16.760 --> 0:09:19.000 will be able to see that. They didn't see it 0:09:19.000 --> 0:09:21.360 in the gym quarter. I'm pretty certain whether they're starting 0:09:21.360 --> 0:09:23.160 to see signs of that in September quarter is a 0:09:23.160 --> 0:09:26.280 big unknown to everybody. So what that's going to be 0:09:26.320 --> 0:09:28.800 the most important thing to glean from that earning scar. 0:09:29.800 --> 0:09:32.640 All right, Hi, bar Courter, Mark Mahoney, evercre thank you 0:09:32.679 --> 0:09:34.480 so much for your time. I think we'll just stick 0:09:34.520 --> 0:09:38.120 with Amazon. Actually, Amazon launching the biggest overhaul of its 0:09:38.200 --> 0:09:42.000 grocery business since it acquired Whole Foods Markets six years 0:09:42.040 --> 0:09:44.679 ago for thirteen point seven billion dollars. For more in 0:09:44.720 --> 0:09:47.320 the details. That's bringing Bloomberg's Matt Day, who's been writing 0:09:47.320 --> 0:09:50.360 about this in Business Week. What I enjoyed about your 0:09:50.440 --> 0:09:53.760 article is you put Amazon in the context of the 0:09:53.920 --> 0:09:57.280 entire landscape for groceries in this country. But what does 0:09:57.320 --> 0:09:58.360 the reset look like. 0:10:00.080 --> 0:10:02.240 It looks like trying to kind of push together all 0:10:02.320 --> 0:10:04.800 the disjointed parts of its grocery business. Right, Amazon bought 0:10:04.800 --> 0:10:08.040 Whole Foods several years ago. Amazon has its own Amazon 0:10:08.080 --> 0:10:11.240 Fresh online delivery business. They've opened a few dozen stores. 0:10:11.360 --> 0:10:12.800 They're trying to make all of that kind of sing 0:10:12.840 --> 0:10:14.760 better together. Right So, right now, if you go online, 0:10:14.760 --> 0:10:16.959 try to shop for groceries on Amazon, you might wind 0:10:17.040 --> 0:10:19.800 up making three separate purchases with three separate deliveries. They've 0:10:19.800 --> 0:10:21.760 said they're going to funnel that under one single basket, 0:10:21.760 --> 0:10:24.400 one single cart, and then eventually they're hoping to start 0:10:24.440 --> 0:10:27.400 re expanding that that brand new Amazon Fresh physical grocery 0:10:27.480 --> 0:10:29.000 chain they started back during the pandemic. 0:10:30.480 --> 0:10:34.599 What is Andy Jase's attitude towards the grocery business. So 0:10:34.679 --> 0:10:37.760 you've guys reported that he's taken a look at other units, 0:10:37.800 --> 0:10:40.880 for example, Prime Video, and said, well, let's get this 0:10:41.000 --> 0:10:43.480 under control. So what do we know about how he 0:10:43.640 --> 0:10:45.760 views the grocery opportunity. 0:10:46.800 --> 0:10:50.480 So since Jeff Bezos first nudge Amazon toward grocery getting 0:10:50.559 --> 0:10:53.560 on fifteen twenty years ago, the rest now has been 0:10:53.720 --> 0:10:56.320 kind of the same for Amazon. Like listen, grocery shops 0:10:56.320 --> 0:10:58.520 the most frequent purchase that people make. You know, we 0:10:58.600 --> 0:10:59.719 need to be there if we're going to be a 0:10:59.800 --> 0:11:02.160 lot of you know, globe straddling retailer. 0:11:02.240 --> 0:11:02.360 Right. 0:11:02.360 --> 0:11:04.760 Amazon's got a tidy business of course already. But we've 0:11:04.800 --> 0:11:06.760 heard Andy Jassey makes some of the similar comments that 0:11:06.840 --> 0:11:09.079 you know, listen, groceries are a really important category. We 0:11:09.120 --> 0:11:10.720 think we have something to say there, and we're committed 0:11:10.760 --> 0:11:12.600 to it for the long term. You know that said, 0:11:12.600 --> 0:11:14.960 they did make a pretty big tap on the brakes, 0:11:15.040 --> 0:11:16.480 you know this about this time of year ago when 0:11:16.480 --> 0:11:19.000 they stopped expanding Amazon Press stores and really taking a 0:11:19.000 --> 0:11:21.280 hard look at, you know, whether their grocery strategy was 0:11:21.320 --> 0:11:23.280 the right one. They think they're there, but you know, 0:11:23.280 --> 0:11:25.120 I guess we'll see, all right. 0:11:25.160 --> 0:11:27.600 Bloombo's Matt Day check out his piece and Business Week 0:11:27.679 --> 0:11:41.240 about the big Amazon Grocery reset. AMD reported better than 0:11:41.320 --> 0:11:44.720 expected second quarter results, which signal some an optimism about 0:11:44.720 --> 0:11:48.520 the chip maker's AI potential, the CEO saying, quote, while 0:11:48.559 --> 0:11:50.920 we're still in the very early days of the new 0:11:51.000 --> 0:11:54.680 era of AI, it's clear that it represents a multi 0:11:54.840 --> 0:11:59.040 billion dollar growth opportunity for AMD. Joining US now Bloomberg 0:11:59.120 --> 0:12:04.040 Intelligence is chip handelist Congensabani, So the opportunity is framed 0:12:04.040 --> 0:12:07.079 as being one hundred and fifty billion dollars by twenty 0:12:07.080 --> 0:12:12.440 twenty seven. We're talking specifically about AI accelerators. The stock 0:12:12.840 --> 0:12:15.400 now it session loads down eight percent. What do we 0:12:15.520 --> 0:12:17.240 not like about what AMD said? 0:12:17.559 --> 0:12:20.160 I think the stock reaction is due to the lack 0:12:20.240 --> 0:12:24.320 of any quantifiable matrix around the AI business. I mean, look, 0:12:24.360 --> 0:12:27.880 there's no doubt that there is definite positive customer interests, 0:12:28.000 --> 0:12:31.760 there's definite positive customer feedback. But these processes take a 0:12:31.760 --> 0:12:34.640 long time. You go from sampling to customers, they need 0:12:34.679 --> 0:12:37.559 to qualify it place the pos an Even after that 0:12:37.640 --> 0:12:39.760 there's a couple of quarters for the ramp. So I 0:12:39.800 --> 0:12:42.160 think the stock reaction is due to the lack of 0:12:42.240 --> 0:12:46.040 any quantifiable matrix around the magnitude and the timing of 0:12:46.080 --> 0:12:49.040 the revenue upside from this business for next year. 0:12:49.080 --> 0:12:53.040 The way the AMD framed it is the customer engagements 0:12:53.480 --> 0:12:57.120 engagements with seven x in the quarter gone, But that 0:12:57.160 --> 0:13:01.240 doesn't equate to booking revenue. That's your point exactly, Yes, 0:13:01.679 --> 0:13:04.800 And talk about where AMD is in the life cycle 0:13:04.800 --> 0:13:07.280 of its AI offering. You know, on this show Bling 0:13:07.280 --> 0:13:09.480 with Technology, we always talking about in video in h 0:13:09.559 --> 0:13:13.000 one hundreds, but that is just the latest generation of 0:13:13.000 --> 0:13:16.800 a number of AI relevant GPUs from Nvidia that have 0:13:16.880 --> 0:13:19.199 been in the market for a long time. His AMD 0:13:19.320 --> 0:13:21.920 actually got anything out there in the wild that customers 0:13:21.960 --> 0:13:22.560 have their hands on. 0:13:23.000 --> 0:13:26.439 I mean, for Apple tablets comparison, the Mi three hundred 0:13:26.720 --> 0:13:30.440 x will be the specific AIGPU which is supposed to 0:13:30.480 --> 0:13:33.079 SAMP or go to a production ramp in Q four. 0:13:33.200 --> 0:13:36.120 So no, and Vidia is running right now deployed as 0:13:36.120 --> 0:13:39.640 second generation GPUs in the field already. But AMD is 0:13:39.640 --> 0:13:41.080 a TAD would relate to this game. 0:13:41.559 --> 0:13:46.440 The story for A and D is AI accelerators. What 0:13:46.720 --> 0:13:48.079 is an AI accelerator. 0:13:48.679 --> 0:13:50.599 I think most people are of for CPU, which is 0:13:50.640 --> 0:13:54.400 a general purpose compute designed to process a lot of 0:13:54.440 --> 0:13:58.000 different tasks and do it well. But an accelerator is 0:13:58.000 --> 0:14:03.080 a chip specifically designed to fastly process one specific type 0:14:03.080 --> 0:14:06.200 of task, hence the name accelerator because it accelerates the 0:14:06.200 --> 0:14:09.280 processing of one specific type of task. So GPU in 0:14:09.320 --> 0:14:11.640 theory is a type of accelerator. The other types of 0:14:11.720 --> 0:14:15.880 accelerators are ACIC chips like from once from Broadcom. The 0:14:15.920 --> 0:14:18.920 TPU that Google uses is an accelerator. So when there's 0:14:18.920 --> 0:14:22.200 a chip designed to only do compute for a specific task, 0:14:22.320 --> 0:14:24.400 but do it very, very fast, that's what we call 0:14:24.440 --> 0:14:25.360 it as an accelerator. 0:14:25.800 --> 0:14:29.320 Away from the excitement of AI, this earning season has 0:14:29.320 --> 0:14:32.200 been about the core legacy businesses. What did you learn 0:14:32.240 --> 0:14:35.800 about AMD's health in PC and in data center? 0:14:36.080 --> 0:14:39.760 I mean similar to Intel, the results around PC was 0:14:40.160 --> 0:14:43.480 really good. It shows that the PC market bottom is 0:14:43.720 --> 0:14:47.240 finally turning and on its path to a recovery and 0:14:47.280 --> 0:14:49.920 the second half seasonality is going to be a tailwind there. 0:14:50.160 --> 0:14:52.600 When it comes to data center though, we have seen 0:14:52.680 --> 0:14:55.400 it again both from Indian Intel, that the enterprise market 0:14:55.520 --> 0:14:58.280 remains a mixed environment. There's still some inventory that needs 0:14:58.320 --> 0:15:00.640 to be cleared and the demand is not as strong 0:15:00.880 --> 0:15:02.840 and on the side on the data center for the 0:15:02.880 --> 0:15:05.800 cloud guys, though coming into this year, we know that 0:15:05.880 --> 0:15:09.320 the total wallet spend is lower than what we expected 0:15:09.400 --> 0:15:11.640 at the end of twenty twenty two. And they're heavily 0:15:11.640 --> 0:15:14.760 spending in their AI cloud portion, which forces them to 0:15:14.800 --> 0:15:18.240 optimize in the non AI cloud pustion. And that's where 0:15:18.520 --> 0:15:21.480 these players have the big market. What the AMD and 0:15:21.560 --> 0:15:22.760 INDEL are feeling deadborn? 0:15:23.320 --> 0:15:26.560 All right, Bloomberg Intelligence is Conngensabani. Check out his earnings 0:15:26.560 --> 0:15:30.000 outlook on the Bloomberg terminal. Sticking with chip, soft Bank 0:15:30.280 --> 0:15:34.720 is also feeling optimistic about AI. The company's semiconductor unit 0:15:34.880 --> 0:15:39.120 ARM is targeting an IPO valued between sixty and seventy 0:15:39.200 --> 0:15:42.400 billion dollars. According to Bloomberg sources, the company could go 0:15:42.440 --> 0:15:45.720 public as soon as September. Earlier this year, bankers had 0:15:45.720 --> 0:15:50.160 pitched valuations ranging from thirty billion to seventy billion dollars, 0:15:50.360 --> 0:15:53.600 but m CEO Rene Has and soft Bank's Masayoshi's Sun 0:15:53.920 --> 0:15:57.400 considered the lower end of that range too low. This 0:15:57.520 --> 0:16:01.440 debut would surpass most in the chipping industry, all right. 0:16:01.440 --> 0:16:04.640 Coming up, Sticking with AI impacting the workforce, how some 0:16:04.800 --> 0:16:08.360 US states are seeking to regulate the new tech. This 0:16:08.640 --> 0:16:25.160 is Bloomberg time now for work shifting. Where we look 0:16:25.160 --> 0:16:28.600 at the changing landscape of the labor market amid advances 0:16:28.640 --> 0:16:31.440 in technology. First, I'm trying to sort winners from losers 0:16:31.640 --> 0:16:34.720 as AI spreads through the economy. The stock market already 0:16:34.800 --> 0:16:37.880 is and it goes way beyond Nvidia and Microsoft. A 0:16:37.960 --> 0:16:41.920 trio of researchers from California universities say companies work with 0:16:42.120 --> 0:16:46.000 workforces ripe is for AI are beating the market. Their study, 0:16:46.200 --> 0:16:49.840 titled Generative AI and Firm Values, depicts a market that 0:16:49.960 --> 0:16:54.080 is already making broad judgments about how automation impact things 0:16:54.080 --> 0:16:57.520 like cash flows and stock valuation, as intelligence systems cement 0:16:57.600 --> 0:17:01.840 themselves as tools of production. Sticking with AI, US states 0:17:01.840 --> 0:17:05.840 are seeking to regulate AI with new legislation. North Dakota's 0:17:06.040 --> 0:17:08.960 AI related measures were among more than a dozen that 0:17:09.000 --> 0:17:12.840 have passed legislatures across the US, covering matters that range 0:17:12.840 --> 0:17:17.919 from road maintenance to examining potential racial discrimination by automated 0:17:17.960 --> 0:17:22.760 systems and companies that contract social media influences and now 0:17:22.800 --> 0:17:28.000 demanding that those influencers by insurance businesses partnering with semi 0:17:28.000 --> 0:17:32.240 famous people on TikTok, Instagram, and YouTube want the personalities 0:17:32.480 --> 0:17:35.240 to take out policies to protect the brands that they're 0:17:35.280 --> 0:17:39.080 promoting before they can expect any more deals here with 0:17:39.160 --> 0:17:42.159 all the details. Bloomberg's Alex Brinka out in La, Okay. 0:17:42.880 --> 0:17:47.160 Why does a semi famous influencer need an insurance policy? 0:17:47.160 --> 0:17:48.200 What is the argument here? 0:17:49.000 --> 0:17:52.239 Well, it's all about usually these are brands who are 0:17:52.240 --> 0:17:55.480 contracting these influencers. When brands go to influencers an ask 0:17:55.480 --> 0:17:57.240 them to make content for them, either for their own 0:17:57.280 --> 0:17:59.800 channels or to post on social media, there's always been 0:17:59.840 --> 0:18:02.480 the inherent level of risk, right you're turning over your 0:18:02.520 --> 0:18:06.119 brand voice to these influencers, to these internet individuals, and 0:18:06.160 --> 0:18:08.560 now it seems like they're taking it a step further. 0:18:08.920 --> 0:18:11.879 As influencers have become such a bigger part of their 0:18:12.080 --> 0:18:16.440 marketing spend, it seems like brands are looking to cap 0:18:16.520 --> 0:18:19.080 some of that risk by asking these creators to take 0:18:19.119 --> 0:18:22.280 out these insurance policies that would protect them from doing 0:18:22.320 --> 0:18:25.640 things like using music that's not licensed for commercial use, 0:18:26.000 --> 0:18:28.920 or as I see here in La almost every single day, 0:18:29.200 --> 0:18:32.359 taking pictures in front of a painted wall of a 0:18:32.440 --> 0:18:36.320 building and that building image happen to be copywritten. So 0:18:36.440 --> 0:18:39.200 brands are really looking to kind of cap their risk here. 0:18:39.480 --> 0:18:42.240 But It's a really interesting move for creators, a lot 0:18:42.240 --> 0:18:45.280 of which are not making so much money in every 0:18:45.320 --> 0:18:45.840 single year. 0:18:46.680 --> 0:18:49.119 So I guess the question is is the threat of 0:18:49.280 --> 0:18:53.320 legal action real? Have we seen lawsuits against people trying 0:18:53.359 --> 0:18:55.440 to make their name online? 0:18:55.480 --> 0:18:57.440 We have, and there have been a couple key cases 0:18:58.119 --> 0:19:01.000 mentioned by our colleague and some good report today. One 0:19:01.080 --> 0:19:03.239 is being Energy. It's an energy drink that ed If 0:19:03.280 --> 0:19:05.800 you spend any time on TikTok, you see creators big 0:19:05.840 --> 0:19:09.880 and small promoting it. There was a lawsuit that alleged 0:19:09.920 --> 0:19:12.760 that creators who are promoting the energy drink was using 0:19:12.960 --> 0:19:16.200 music on TikTok that was not sanctioned for commercial use. 0:19:16.280 --> 0:19:18.840 Not every sound or song you see on TikTok are 0:19:18.880 --> 0:19:21.320 you able to use in something like an ad. There 0:19:21.359 --> 0:19:24.919 was also a suit in London against a beauty brand 0:19:25.040 --> 0:19:27.840 called Iconic, where a creator took a picture in front 0:19:27.880 --> 0:19:31.480 of a piece of wal art that wasn't that was copywritten. 0:19:31.520 --> 0:19:34.159 So these things are beginning to come up, But the 0:19:34.280 --> 0:19:36.480 economics of these are really interesting. You could be a 0:19:36.520 --> 0:19:39.080 creator who is looking to get paid four thousand dollars 0:19:39.160 --> 0:19:41.439 for one post, but the brand is then asking you 0:19:41.520 --> 0:19:45.200 to take out a two million dollar insurance policy basically 0:19:45.240 --> 0:19:48.399 to indemnify them and asking you to spend two thousand 0:19:48.560 --> 0:19:52.280 a year to keep that policy viable. So quite interesting 0:19:52.320 --> 0:19:56.040 economics here that's being asked of these creators as brands 0:19:56.040 --> 0:19:58.480 are looking to them to create content frankly a lot 0:19:58.560 --> 0:20:00.399 cheaper sometimes than they can make it house. 0:20:00.760 --> 0:20:04.960 So some of the numbers behind these policy limits are incredible. 0:20:05.040 --> 0:20:08.920