Speaker 1: From Marhard. We're Innovation Money and Power co Line in
Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and.
Speaker 2: Ed Ludlow.
Speaker 3: Live from Roomberg's World headquarters in New York.
Speaker 4: And Caroline Hyde and I'm Ed Lovelow as if by
Speaker 4: Magic also in the Big Apple.
Speaker 5: This is Bloomberg Technology.
Speaker 3: Coming up and Intel it plunges after disappointing investors with
Speaker 3: its forecast. We're going to be sitting down with the
Speaker 3: Intel CEO, Pat Gelsinger to break down the company's results.
Speaker 4: For bet Amazon and Microsoft facing FTC probes about their
Speaker 4: investments and partnerships with AI companies, Details ahead and salesforce.
Speaker 3: Look, it's adding to a brutal string of tech layoffs
Speaker 3: in twenty twenty four, announcing its slashing seven hundred workers.
Speaker 4: Well, look, there's just a single point of focus in
Speaker 4: tech right now, which is Intel. The stock in the
Speaker 4: session down more than ten percent intraday, biggest dropping around
Speaker 4: a year. If it closes down beyond ten percent, it
Speaker 4: will be the biggest drop since the end of twenty
Speaker 4: twenty one.
Speaker 5: What is going on?
Speaker 4: Well, the outlook has us worried, particularly about how Intel
Speaker 4: is faring in the market for chips that go into
Speaker 4: data centers. But remember they're also growing this fledgling foundry
Speaker 4: business and there was just a lack of detail. We
Speaker 4: don't know who the customers are, but there also doesn't
Speaker 4: seem to be enough dollars committed to that foundry and
Speaker 4: fab business. We're going to be speaking later in the
Speaker 4: hour with Pat Gelsinger, the CEO of Intel. If you're
Speaker 4: watching on Bloomberg Television, you're on the terminal ibs, contact
Speaker 4: us on social media with your questions because there are
Speaker 4: lots of questions to ask on where are we at
Speaker 4: in this turnaround plan that bat Gelsinger has kind of
Speaker 4: put in front of investors for a number of quarters.
Speaker 3: Right now, Cara and ed a lot of what he's
Speaker 3: been hoping for is well the wins of positivity coming
Speaker 3: from AI investment. But let's just talk about AI in
Speaker 3: a different way right now from the regulatory perspective, because
Speaker 3: the FTC has launch an inquiry into Alphabet, Amazon, Microsoft
Speaker 3: on their investments and partnerships with companies like Anthropic, like
Speaker 3: open Ai, those private companies. This is part of a
Speaker 3: study on how artificial intelligence is impacting competition in the
Speaker 3: tech industry and used to say bluemeggs. Jackie Davlas are
Speaker 3: AI expert and also Washington expert joins us now and Jackie.
Speaker 3: The FDC here is really trying to garner as to
Speaker 3: whether or not these are kind of M and A
Speaker 3: deals by a backdoor.
Speaker 6: Well, when you look at it, they're not small deals.
Speaker 6: They might be creative and that it's not a traditional
Speaker 6: mergers and acquisition steal. But the FTC is well aware
Speaker 6: of that. And the reason they are on their radar
Speaker 6: is because it's a massive amount of money. It's nineteen
Speaker 6: billion dollars collectively between the thirteen billion Microsoft committed to
Speaker 6: open AI, the two billion that Anthropic raked in from Alphabet,
Speaker 6: and then the almost four billion.
Speaker 3: It got from Amazon.
Speaker 6: These are enormous stay and the FTC wants to understand
Speaker 6: should they be subject to the same types of merger rules. Now,
Speaker 6: they're not the only regulators that got that have these
Speaker 6: companies on their radar. The UK started their own inquiry
Speaker 6: in December, and then you had the European Union also
Speaker 6: starting to take a look at whether they should be
Speaker 6: kind of looked at like a merger would. Earlier this month, you.
Speaker 5: Know, Jackie.
Speaker 4: The FTC has the who's who of megacat tech in
Speaker 4: their sites and the leaders in building of lms. But
Speaker 4: I want to go to Microsoft specifically because of being
Speaker 4: the world's most valuable company as it stands, but also
Speaker 4: the Microsoft OpenAI thing is somewhere.
Speaker 5: Something We've done a lot of reporting on.
Speaker 4: What is Microsoft's response been to the news of the
Speaker 4: last twenty four hours.
Speaker 6: They defended the partnership and actually said that the US
Speaker 6: has been ahead in AI because of these partnerships. Their
Speaker 6: top competition's lawyer also said that they look forward to
Speaker 6: providing the information the FTC needs to really assess the
Speaker 6: nature of this relationship. But you're absolutely rated. Microsoft here
Speaker 6: is arguably more at risk than perhaps some of these
Speaker 6: other companies. Microsoft has overhauled its entire product line to
Speaker 6: integrate open AI's AAI technology and large language model into
Speaker 6: the most ubiquitous tools and its most profitable tools it has.
Speaker 6: And so of course, whether the FTC decides that there's
Speaker 6: nothing to see here, that these partnerships are valid, that's
Speaker 6: one outcome, But then the other one could mean untangling
Speaker 6: these partnerships in some way. And this is where Microsoft
Speaker 6: is arguably more exposed.
Speaker 4: Kay Bloomberg's Jackie Davlos out in DC with the reporting.
Speaker 5: Thank you.
Speaker 4: Let's continue the conversation with Christina Kafara, co founder and
Speaker 4: vice chair of the Competition Research Policy Network at the
Speaker 4: Center for Economic Policy Research in London. She's a specialist
Speaker 4: in antitrust and it is advised on high profile landmark
Speaker 4: competition cases on behalf of the tech companies Microsoft, Apple,
Speaker 4: Amazon and many others. We've been through the detail, but
Speaker 4: the timing for me is really interesting. There has been
Speaker 4: a large body of reporting, most of it from Bloomberg,
Speaker 4: about regulators around the world looking at the relationship between
Speaker 4: mega cat tech and the new players in AI. Why
Speaker 4: do you think the FTC is acted now.
Speaker 7: It's a pleasure to be here. Thank you for having me.
Speaker 7: The reason this announcement by the FDC is significant is
Speaker 7: that it is the first of the regulators who is
Speaker 7: actually doing a wide ranging type of investigation over these partnerships.
Speaker 7: As your reporter mentioned, the uk CMA, the UK regulator,
Speaker 7: the European Commissioner already looking into this specific partnership between
Speaker 7: OpenAI and Microsoft, but there is a border focus in
Speaker 7: the FDC's announcement and what's behind it. And it is
Speaker 7: really common to all of these regulators that I certainly
Speaker 7: would describe them as a triad of fairly progressive regulators
Speaker 7: European Commissioned, the UK Regulator, and the US agencies. What's
Speaker 7: common between them is an anxiety that essentially we do
Speaker 7: not want to see the same playbook unfold again. What
Speaker 7: has happened in the past is that regulators has been
Speaker 7: very slow in intervening. For the first decade and the
Speaker 7: second decade, really.
Speaker 8: There's been a reluctance to intervening these sectors because there
Speaker 8: was a sense that anti trust is really a problem
Speaker 8: that affects law, innovation sectors, an analog rather than digital.
Speaker 7: And things will take care of themselves. So anti trust
Speaker 7: intervention as being late, and this is really what is
Speaker 7: powering the anxiety. The regulators are we cannot let this
Speaker 7: playbook unfold yet again. We need to be vigilant, We
Speaker 7: need to be seen to be doing something.
Speaker 3: Christina, what about the anxiety? Is it a reality that
Speaker 3: anxiety that basically these partnerships are more than partnerships, They
Speaker 3: are indeed em and a they are indeed control.
Speaker 4: Oh.
Speaker 7: Absolutely, the anxiety extends to this because The concern internal
Speaker 7: to the agencies is that boardrooms have internalized that the
Speaker 7: climate of enforcement has become more hostile to deals. I mean,
Speaker 7: if you think about Microsoft activision into two years and
Speaker 7: it is int obit there. So there is a general
Speaker 7: awareness that doing deals is much more difficult now, and
Speaker 7: there is an anxiety that companies are effectively the fact
Speaker 7: to circumventing merger control by dressing up these relationships as partnerships.
Speaker 7: So this is certainly the second leg of the anxiety.
Speaker 7: We've been too late, We've not done enough, and now
Speaker 7: we are exposed to the rest that these companies are
Speaker 7: actually doing deals by the backdoor. So that's really.
Speaker 4: Why Christian significant, Caroline and I have covered so many
Speaker 4: these FTC inquiries on this program Bloomberg Technology. All of
Speaker 4: them slightly different, but the question they all share in
Speaker 4: common is to whose benefit is the FTC acting. You know,
Speaker 4: people are worried about AI, but there's also a broad
Speaker 4: body of people that say this could really help humankind.
Speaker 4: It's very expensive to achieve, and those names that are
Speaker 4: the subject of this inquiry are those with the capital
Speaker 4: to drive the progress. Does the FTC put any weight
Speaker 4: on that latter argument?
Speaker 7: Of course, and I think Lina Khan in her announcement
Speaker 7: yesterday emphasized at the beginning that these points are well taken.
Speaker 7: I think humanity to the extent possible wants to benefit
Speaker 7: from this. And of course we're all aware that there
Speaker 7: are massive investments that need to be put into this,
Speaker 7: which is why these players out at the forefront of development.
Speaker 7: That said, we have a recent history, which is a
Speaker 7: history of failure of engaging with these questions and why
Speaker 7: one doesn't want to prejudge the outcome. One needs to
Speaker 7: be vigilant because we have spent the last ten years,
Speaker 7: certainly in Europe, but I reside trying to pursue exposed
Speaker 7: investigations of conduct. You're at that point in the US too,
Speaker 7: you have an number of complaints. How many years will
Speaker 7: it take before anything will move? Before everything comes even
Speaker 7: to a court?
Speaker 3: The google Christina's when you look at what's happening in Europe,
Speaker 3: they're actually taking regulatory action that forces a change. Will
Speaker 3: we see actually companies front run this.
Speaker 7: In Europe? What you've seen is because anti trust has
Speaker 7: failed spectacularly to deliver so far, we've been at it
Speaker 7: for fifteen years. There hasn't been a moving of the dial.
Speaker 7: There hasn't been a single anti trust decision on Google
Speaker 7: and others that has actually changed the situation on the ground.
Speaker 7: So we pivoted to regulation. Now it remains to be
Speaker 7: seen whether this is regulation which is now being implemented
Speaker 7: it's going to move the dial itself. These are all experiments, Frankly.
Speaker 7: The sense is therefore that if you kind of try
Speaker 7: and correct the issue when the monopolies are established, where
Speaker 7: market power is established, when power is entrenched, you struggle,
Speaker 7: you are not going to be able to effectively undo
Speaker 7: that power. And so the notion of looking at it
Speaker 7: early and looking at what the nature of this partnership,
Speaker 7: for example, is so, what are the potential issue here?
Speaker 7: I mean, think about this industry as a supply chain
Speaker 7: that's practicalized. Never mind that there is at the bottom
Speaker 7: a lot of competition. The issue is the power at
Speaker 7: the level of the inputs, the power the level of
Speaker 7: the models. Now, if that power is very concentrated, then
Speaker 7: the question that I relate us need to ask is
Speaker 7: how will that input which is essential to all of
Speaker 7: these products the general models be effectively supplied, will be
Speaker 7: supplied on conditions that are these advantageous that are extracted.
Speaker 7: That that exploi is actively remove the ability of arders
Speaker 7: to compete. The fact that at the product level there's
Speaker 7: thousands of people implementing AI application, it's jolly good. But
Speaker 7: if there's only one, two or three suppliers of this,
Speaker 7: then the question becomes will they preference themselves? Will they
Speaker 7: have advanced notice of the work Christina x development?
Speaker 5: Will they and.
Speaker 7: To conclude, will they effectively favor the development of technology
Speaker 7: ways that suit them?
Speaker 3: Some food for thought for sure, Christina Kafara, We thank
Speaker 3: you for the time and the expertise Center of Economic
Speaker 3: Policy Research over in London, Happy weekend. Meanwhile, sticking on
Speaker 3: a theme of AI open, AI CEO Sam Altman when
Speaker 3: he's actually visiting leaders in South Koreas se in conductor
Speaker 3: industry this week. This is as he's weighing, of course,
Speaker 3: a pretty ambitious move into chip production. Altman has arrived
Speaker 3: in Seoul last night and he's touring some songs chip
Speaker 3: fabrication plants today. According to a source, he's also scheduled
Speaker 3: to meet the CEO of rival s k Heinex to
Speaker 3: discuss ways to collaborate and something.
Speaker 5: We're reporting that yeah, big time.
Speaker 3: So in another effort to cut costs, Salesforce is now
Speaker 3: the latest big tech company resorting to layoffs. Gloomberg's Brody
Speaker 3: Ford has details and Brody Salesforce has already kind of
Speaker 3: number of staff. This time. It's small than percentage form,
Speaker 3: But seven hundred is nothing to be sniffed.
Speaker 9: At, right, Yeah, it's tempting to say that, hey, a
Speaker 9: year ago there was you know, seven thousand people cut.
Speaker 9: Now it's seven hundred, so we don't care so much.
Speaker 9: But it's still What it shows to us is that
Speaker 9: the tech industry is still focused on cutting costs, and
Speaker 9: this may become a more regular part of the year. Right,
Speaker 9: It's like we're going back to nineteen fifty and ge
Speaker 9: and stack ranking.
Speaker 10: Right.
Speaker 9: We saw this with Microsoft, Amazon, Google. Companies that made
Speaker 9: big cuts last year are doing well financially still see
Speaker 9: it in their interest to trim a couple percentage points periodically,
Speaker 9: So I expect this to be a trend to continue.
Speaker 4: The point of difference from this time last year is, yes,
Speaker 4: the size of the c but if you go on
Speaker 4: any website of those that have cut Salesforce, Microsoft, whatever,
Speaker 4: they're also hiring and where they're hiring is clear as day.
Speaker 9: Brody, Yeah, where there. I mean, it's two letterers. We've
Speaker 9: been here and every day for the last year and
Speaker 9: a half. AI Right Salesforce has told me that they're
Speaker 9: really hiring for engineering roles and for those who are
Speaker 9: going to market for their AI products. I think a
Speaker 9: lot of companies salesforce more than most, really focused on
Speaker 9: pairing back these traditional sales and marketing rules. Yeah, so
Speaker 9: now they're kind of investing in what's going to bring
Speaker 9: them further. And you know, unfortunately for some workers, it
Speaker 9: is probably cheaper to fire than hire externally than it
Speaker 9: is maybe to retrain some of your people.
Speaker 4: Goodbye marketing, Hello computers, Bloombog's Brody forward, Thank you very much.
Speaker 4: Now coming up here on Bloomberg Technology, we go back
Speaker 4: to Earning's coverage and we sit down with Intel CEO
Speaker 4: Pat Gelsinger amid the company's results that often investors a
Speaker 4: disappointing forecast in the stock down significantly as a result.
Speaker 4: That's coming up next. This is Bloomberg Technology. Welcome to
Speaker 4: our Bloomberg television and radio audiences worldwide. The focus Intel
Speaker 4: and the chip makers earnings a forecast for the current
Speaker 4: period that makes the market nervous about Pat Gelsinger's turnaround
Speaker 4: plan for Intel, some worry about its data center business
Speaker 4: and a fledgling foundry business. I'm delighted to say we
Speaker 4: are joined by Pat Gelsinger, Intel CEO. The stock is
Speaker 4: down more than ten percent. What is it that the
Speaker 4: market is not understanding here for Intel?
Speaker 11: Well, thanks, Ed, and always a pleasure to be with
Speaker 11: you and Carolyn on the show.
Speaker 1: First, we've finished a great year.
Speaker 11: At Q four, beat on top and bottom line, finishing
Speaker 11: a year that was comfortably ahead and showing the transformation
Speaker 11: journey that we're on, and.
Speaker 1: We believe we're putting points on.
Speaker 11: The board for a law term transformation of this iconic company.
Speaker 11: In light of that, Hey, the Q one, you're at
Speaker 11: the low end of seasonal, So we think the market
Speaker 11: reaction is a bit overstated in that respect. We understand it,
Speaker 11: but our company, our employees are doing an incredible job
Speaker 11: at delivering our process technology, restoring product leadership, defining new
Speaker 11: categories like the AIPC. We're on a multi year journey
Speaker 11: and we're not going to be judged on a ninety
Speaker 11: day shot clock. We are out to rebuild this company
Speaker 11: and we had a great twenty three and I'm confident
Speaker 11: in a grade twenty four for this company.
Speaker 4: Pat there were there were so many questions on the
Speaker 4: call about your foundry business, and for our global audience,
Speaker 4: that's the sort of contract manufacturing business where you make
Speaker 4: chips for others, and you seem to say that you
Speaker 4: didn't get as many committed dollars as you thought you might,
Speaker 4: and I wonder what's standing in the way of that
Speaker 4: customers committing to backing your foundry business.
Speaker 1: Yeah, and we're very comfortable with the progress. You know.
Speaker 11: We said that we'd have one on our leading edge
Speaker 11: Node eighteen A as it's called, and we delivered four
Speaker 11: for the year. We also found that there was a
Speaker 11: lot of momentum in our packaging business where we now
Speaker 11: have five major customers on our advanced packaging technology and
Speaker 11: we said, hey, we went from four billion to over
Speaker 11: ten billion of lifetime deal values.
Speaker 1: So good momentum.
Speaker 11: But most importantly is the process technology itself. Are we
Speaker 11: back to a leadership technology and we're hitting all the
Speaker 11: milestones this audacious five nodes and four year plan and
Speaker 11: all the milestones are on track to have us back
Speaker 11: to process leadership in twenty five and as I say,
Speaker 11: a foundery company, they want to know that if they
Speaker 11: design on us, they can build the best products. And
Speaker 11: we're gaining momentum in delivering on exactly that promise, and
Speaker 11: so proud of my team's for delivering on such an
Speaker 11: audacious plan.
Speaker 1: We're on track.
Speaker 3: What about track for AI accelerators not just AI on
Speaker 3: the PC, but I put it bluntly, pat and videos
Speaker 3: run away with this, when or can you regain any
Speaker 3: sort of leadership in that space?
Speaker 11: Yeah, and clearly that's been an area of strength for them.
Speaker 11: We appreciate that they've as I say, focused on that
Speaker 11: for many years and the market has come their way
Speaker 11: in a strong way. But our roadmap is gaining momentum.
Speaker 11: Goudy two, we said, we're seeing a significant expansion in
Speaker 11: the customer pipeline.
Speaker 1: That we have.
Speaker 11: We're ramping up supply, so I'll say we're chasing to
Speaker 11: have enough supply to meet marketing. We're well underway on
Speaker 11: our next generation Gouty three as it's called, with four
Speaker 11: x the compute, two x the network in the lab,
Speaker 11: gaining really really good early debug in bringing that product
Speaker 11: to market later this year. So we feel like, hey,
Speaker 11: you know, yes, we have a lot of work to
Speaker 11: do here, but the momentum is building, the market is
Speaker 11: looking for alternatives, and our roadmap is strengthening is we
Speaker 11: go through the year. But more importantly, Carolyn, is this
Speaker 11: idea that last year was the year of high end training.
Speaker 11: This year it's about how do I use those models?
Speaker 11: And that's much more about the enterprise strength. 're Intel
Speaker 11: is at the edge in the PC and in the
Speaker 11: enterprise data center. So we see the market coming our
Speaker 11: way in AI in twenty four and twenty five.
Speaker 3: And let's go to that core segment. Let's go to
Speaker 3: data centers. Because you promised that you are not losing
Speaker 3: market share there, how do you show that evidence of
Speaker 3: that path?
Speaker 1: In Q four?
Speaker 11: Our estimates are we are about flat in market share
Speaker 11: in Q four, So clearly we lost share weakness of products,
Speaker 11: but that's now being overcome. We are executing on our
Speaker 11: product roadmap and we're ahead of schedule on the products
Speaker 11: for twenty four. We're seeing great momentum for the twenty
Speaker 11: twenty four product line, good execution, and I'm very happy
Speaker 11: to say we sent our first twenty twenty five product
Speaker 11: on eighteen A already into fab ahead of schedule, so
Speaker 11: our execution momentum as building. We see that we've stabilized
Speaker 11: our market share, and now it's time for us to
Speaker 11: rebuild where we were before, and we have the products
Speaker 11: and the strength to go do it. Really proud of
Speaker 11: our team's progress here.
Speaker 4: For our Bloomberg television and radio audience worldwide, we're speaking
Speaker 4: with the Intel CEO, Pat Gelsinger, and Pat when I've
Speaker 4: been down to Santa Clara and sort of seeing the
Speaker 4: reality of Intel, it's always strikes me as being more
Speaker 4: multifaceted than say in video, right, and it's a high
Speaker 4: end performance GPU. A part of that is the packaging,
Speaker 4: A part of that is your differentiation with Foundry. But
Speaker 4: I go back to Caroline's point on the core business.
Speaker 4: What seems to be happening in the context of data
Speaker 4: center is CPU and I just wondered if you'd explained
Speaker 4: to our audience what you think is happening in that market,
Speaker 4: specifically on the CPU side.
Speaker 11: Yeah, and then the CPU last year was clearly here
Speaker 11: there was more energy on the GPU right for these
Speaker 11: high end training systems. But as we come into this year,
Speaker 11: we think there's going to be more balanced between the
Speaker 11: CPU and the accelerator marketplace. Clearly we're going to be
Speaker 11: participating more in the accelerator. But the strength of Intel
Speaker 11: has been our Xeon, the core data center CPU and
Speaker 11: you know, coming out of World Economic Form and Davos
Speaker 11: and CEES, I probably met with fifty customers and the
Speaker 11: enthusiasm that they have and the traditional strength that Intel
Speaker 11: has in the enterprise. And you know, we're in year
Speaker 11: twenty of the clouded and sixty percent of computing is
Speaker 11: in the cloud, but eighty percent of the data remains
Speaker 11: on prem in the enterprise data center. That's where Intel
Speaker 11: is uniquely strong, and our CPUs and accelerators are going
Speaker 11: to unlock that capability for our customers. This is an
Speaker 11: exciting time for us to really enable them to use
Speaker 11: those models. And that's the strength for Intel and our CPUs.
Speaker 4: Pat When I look at the cloud and the hyperscalers themselves,
Speaker 4: the really interesting story is their in house design work
Speaker 4: and they're in house silicon progress. Do you consider that
Speaker 4: a factor in how your own business in the data
Speaker 4: center and cloud side performed and how you think it
Speaker 4: will perform going forward.
Speaker 11: Yeah, And one of the things that I said at
Speaker 11: is Intel has the opportunity of a hundred percent of
Speaker 11: the AI market for it.
Speaker 1: Because we're going to have our product.
Speaker 11: Offerings Xeon is strong showing up with greater improvement in
Speaker 11: our Accelerator product line, but we're also going to be
Speaker 11: a foundry and all of those internal programs that you
Speaker 11: see at Amazon and at Google and a Microsoft. Hey,
Speaker 11: I want to be the foundry for those and all
Speaker 11: of the competitors' products. I want to be the foundry
Speaker 11: for them as well as we're seeing the momentum of
Speaker 11: our packaging technology. So when you think about it that way,
Speaker 11: Intel uniquely is the company that has the opportunity to
Speaker 11: participate in one hundred percent of the AI market with
Speaker 11: our products and our foundry, and that's exactly what we're
Speaker 11: intent upon doing.
Speaker 3: Has any of the weakness in demand thus far been
Speaker 3: because of this in house design and build commitment from
Speaker 3: some of these companies, or have you already managed to
Speaker 3: sort of seal verbal approval that you'll be doing these
Speaker 3: for them from a foundry business at this point.
Speaker 1: I'd say it's pretty early.
Speaker 11: I don't think it's really affected the market that much, Carolyn,
Speaker 11: so far, but I do think this forward looking view
Speaker 11: is a unique one for intel that we do get
Speaker 11: to participate in both sides of that market. There's a
Speaker 11: lot of energy here as the cloud vendors are saying,
Speaker 11: how do I have a more cost effective solution for
Speaker 11: these large training and inferencing demands of generative AI? And
Speaker 11: for that every one of them has these projects underway
Speaker 11: and we're engaging with all of them as we speak.
Speaker 11: So I really see that as a long term opportunity.
Speaker 11: Takes multiple years for those to materialize, but our technologies
Speaker 11: as they gain momentum are showing up at just the
Speaker 11: right time to satisfy a unique AI market for those
Speaker 11: cloud vendors.
Speaker 3: And we've just been hearing how within this change that
Speaker 3: we see around AI, so comes a change in talent.
Speaker 3: And many of these companies. Are you in any way
Speaker 3: having to reorientate your own workers, your own colleagues, Pat,
Speaker 3: are you having to let go of people?
Speaker 11: Well, every day it's focused on talent and in the
Speaker 11: technology industry. Carol talent right is one of our CFOs
Speaker 11: used to say, he said, we start with sand, right,
Speaker 11: the second most plentiful material on earth, and everything else
Speaker 11: is talent between then and delivering our products and technology.
Speaker 11: So this idea of talent is so critical to our
Speaker 11: markets now. Intel has a well tenured and very capable
Speaker 11: base in bost software and in hardware, but we're reorienting
Speaker 11: them very fast to the AI requirements, to data skills,
Speaker 11: to software skills. But we build on a very firm
Speaker 11: foundation and we're making good moves to bring additional talent
Speaker 11: into the company as well to continue to have the
Speaker 11: best people to do the best products to enable the
Speaker 11: best customer experience that they could possibly have. And a
Speaker 11: great example of that is the AIPC, where we're unquestionably
Speaker 11: defining the category, have a strong roadmap and delivering on
Speaker 11: it at scale with ISVs and our OEMs in the
Speaker 11: marketplace today.
Speaker 4: Pat, before we let you go, you mentioned eighteen A.
Speaker 4: You in the past have been kind and explained to
Speaker 4: me what it takes to jump generation to generation on
Speaker 4: the manufacturing side and kind of the process to retain
Speaker 4: and regain technology leadership. So in the time small time
Speaker 4: we have left, what evidence do you have that that
Speaker 4: beautiful chart you drew from me on the whiteboard is
Speaker 4: playing out the way that you expected to.
Speaker 1: Well, we delivered the design collateral.
Speaker 11: It's called a PDK and Q four of last year,
Speaker 11: we've seen our customers expand against that, and most importantly,
Speaker 11: we sent our first major product into the fab just
Speaker 11: before Earning's Call started, ahead of schedule.
Speaker 1: And if you can take.
Speaker 11: A big processor design like a server chip and send
Speaker 11: it with stable design rules into manufacturing, that's a pretty
Speaker 11: definitive statement of momentum. And we're adding customers and we
Speaker 11: have seventy five test chips in the plan right now,
Speaker 11: so lots of customers are saying, let me try my design.
Speaker 11: And importantly, we have our Foundry day. You know, this
Speaker 11: opening of the doors of Intel Foundry coming up in February,
Speaker 11: so a moment for the ecosystem, the EEDA partners, the
Speaker 11: IP providers, and our customers to show up and see
Speaker 11: the progress that we're making. And for the first time
Speaker 11: we'll talk about what comes after eighteen A.
Speaker 1: You know, we're not finished. You know the Moore's Law.
Speaker 11: We are the stewards until the periodic table is exhausted.
Speaker 11: We ain't finished, and we're confident we're the company that's
Speaker 11: going to keep innovating in process technology for decades to come.
Speaker 5: Moore's Law.
Speaker 4: Indeed, Intel CEO Pat Gelsinger, thank you, Caroline. You and
Speaker 4: I have also been talking about that it's an election
Speaker 4: year and first and foremost, in the coming week, you
Speaker 4: have all of the social media CEOs in one place. Meta,
Speaker 4: for example, is adding further measures to protect teams from
Speaker 4: unwanted contact by turning off their ability to receive direct
Speaker 4: messages from anyone they don't follow or aren't connected to
Speaker 4: on Instagram by default. They're also increasing parental controls. These
Speaker 4: measures come ahead of a Senate hearing on online child
Speaker 4: sexual exploitation, where the CEOs of Meta, x, TikTok, Snap,
Speaker 4: and Discord will testify next week.
Speaker 5: There is a lot to pass over.
Speaker 4: Let's break it down with Sharon Franco, head of Legal
Speaker 4: and public policy at Uboa, Paris based social discovery platform
Speaker 4: for gen Z, which has just unveiled its own reference
Speaker 4: document on universal safety principles for young people online.
Speaker 5: Welcome to the program.
Speaker 4: We're very familiar with getting all of the CEOs of
Speaker 4: social media companies in one place and lobbing questions at
Speaker 4: them because cynicism or skepticism is what does it achieve?
Speaker 10: Yes, so I cannot speak for a platform by now
Speaker 10: and head over your life as you will, so it
Speaker 10: dies matter. I think that's speaking set up and the
Speaker 10: die makes cita, but I.
Speaker 3: Expoke of that we're just having some struggles hearing you
Speaker 3: at the moment. Let us just focus in on your
Speaker 3: microphone for a second, because I think that we are
Speaker 3: going to be hearing from the UBO perspective is, of course,
Speaker 3: this is a company that's building in collaboration with Meta
Speaker 3: and some of these other companies, social media companies, Away
Speaker 3: in which you can sort of self police Away, in
Speaker 3: which they can put in guardrails and in many ways
Speaker 3: use artificial intelligence as a means of not just a
Speaker 3: worry when it comes to exposure for children, but more
Speaker 3: of a tool to heal and a way in which
Speaker 3: that companies can identify when there's bad behavior going on,
Speaker 3: when there's child exploitation potentially happening across that platform.
Speaker 4: Remember that this hearing next week was due to happen
Speaker 4: before the holidays, and my understanding from sources is they
Speaker 4: couldn't get their BacT together and the CEOs couldn't be
Speaker 4: in one place a one time.
Speaker 5: You raise really good points. I brought up the election cycle.
Speaker 4: You bring up AI and the thing that you and
Speaker 4: I hear all the time in the cybersecurity context is
Speaker 4: all of the.
Speaker 5: Great tools that we have to advance our work and
Speaker 5: things at home.
Speaker 4: The threat actors have to amplify malicious content. So it's
Speaker 4: going to be interesting if that's the point of focus
Speaker 4: that the lawmakers go after, because often when you get
Speaker 4: all these CEOs one place, they don't focus really.
Speaker 3: On, well, sandlights, Isn't it unfortunate point the.
Speaker 4: Conversation, as Sharon, I believe your your microphones back up
Speaker 4: and running, So let's go with that. You know, what
Speaker 4: is it that you think the industry, the social media
Speaker 4: industry needs to demonstrate to the public in the coming week.
Speaker 10: They need to demonstrate them I think it's already something
Speaker 10: that is already a work in progress that needs to
Speaker 10: demonstrate that they are invested and committed into tackling the
Speaker 10: issues and protecting children's online. But I think that now
Speaker 10: we need to focus on solution, and I expect from
Speaker 10: this hearing, for example, that it will be focused on
Speaker 10: solutions or peressional solution, practical solutions. I think that the
Speaker 10: purpose that the SAY is looking for with this hearing
Speaker 10: not only having an overview of the issues. Because we
Speaker 10: know the issues, we know the impact of the use
Speaker 10: of social media and the risk that the children are
Speaker 10: facing and using these platforms. But now we need to
Speaker 10: focus on operasional solutions and that's the work that we've
Speaker 10: been doing as you go. Also really since the beginning
Speaker 10: of the company, working on finding solutions, practical solutions.
Speaker 3: Let's talk about them. Man. In many ways, you are
Speaker 3: trying to ensure that someone is the age they identify
Speaker 3: themselves as, in particular, whether that's using photos and artificial
Speaker 3: intelligence to identify where they are indeed older or younger
Speaker 3: than the age they've put in. Anyone under thirteen shouldn't
Speaker 3: be used in the app. How have you done that
Speaker 3: from a privacy perspective? How have you done that from
Speaker 3: an opt in perspective?
Speaker 10: You're pointing out one of the biggest issue when you
Speaker 10: talk about putting in place of parisional solution to in
Speaker 10: terms of safety, it's the privacy obligation. So as you know,
Speaker 10: you boys a French company, so we are Europeans. Or
Speaker 10: privacy and with the GPR is something that comes natural
Speaker 10: for us, and that's why since the creation of the company,
Speaker 10: we've been developed all our products safety pride design but
Speaker 10: also privacy by design is the work that we need
Speaker 10: to do at the same time, and it's doable. I mean,
Speaker 10: we can do it. It's just a question of priority
Speaker 10: and also a question of at what moment you start
Speaker 10: to think about this question of compliance with privacy that
Speaker 10: you that you need to take in consideration. And for example,
Speaker 10: one of the work that we've been doing is working
Speaker 10: with all the institution and administration in France but also
Speaker 10: in UK for example, to work on what's obligation we
Speaker 10: need to integrate and the work that we've been doing
Speaker 10: with the French standard Organization, we've created we created a
Speaker 10: working group with this agency and we in this working
Speaker 10: group we had a lot of companies.
Speaker 3: Like a Meta for example.
Speaker 10: We're also ENGOs child protection ENGOs, but also institutions and
Speaker 10: agencies such as the French that are protection authority for example.
Speaker 10: And we've came up with one hundred pages of operational
Speaker 10: solution giving a guidelines and recommendation on how to protect
Speaker 10: my nods online, how to protect my nots on social media,
Speaker 10: how to moderate content, how to work on age assurance.
Speaker 10: Because there's a lot of solutions today that we can use.
Speaker 3: You've come here to talk to lawmakers to show off
Speaker 3: this document and to see whether or not will be adopted.
Speaker 3: Has it landed on air? Is that welcoming? Are these
Speaker 3: sorts of one hundred pages that you've given going to
Speaker 3: work in the United States as well as in Europe
Speaker 3: and the UK.
Speaker 10: We hope, So we hope so that that's a purpose
Speaker 10: that there's no reason why it shouldn't work because we
Speaker 10: have all the we face all the same issues in
Speaker 10: terms of risk, but we also now kind of ending
Speaker 10: at a point where the legislation in terms of privacy
Speaker 10: but also of child protection and social media legislation, it's
Speaker 10: kind of not the same everywhere, but we are heading
Speaker 10: all in the same direction. So there's no there's no
Speaker 10: no reason why it shouldn't work here. As I said,
Speaker 10: Meta was part of this working group for example, and
Speaker 10: uh and uh, and we had no difficulty ending up
Speaker 10: on something that we are all agreed on. And that's
Speaker 10: that's the way we should That's the thing we should
Speaker 10: keep in mind to day. Multi stake order work is
Speaker 10: the way we we will achieve This of us and
Speaker 10: who will achieve and having a social platform that protects
Speaker 10: children and that's that are safe for them, that's really
Speaker 10: the gold that we all want to achieve and it's yeah.
Speaker 3: Sharon Franco, thank you for talking us through this document
Speaker 3: and of course many can go out there and see
Speaker 3: it what you've made at You've both the head of
Speaker 3: legal and public policy there. Meanwhile, coming up, we'll take
Speaker 3: a deep dive into healthcare investing and more. That's with
Speaker 3: the Obvious Ventures. Stick with us. The VC Spotlight is
Speaker 3: room meg Technology. Let's talk about investing from a venture perspective,
Speaker 3: particularly in health tech. Right now, VC Spotlight is upon us.
Speaker 3: Obvious Ventures co founder and managing director Vischelle Fasiche is
Speaker 3: with us Obvious over one billion dollars in assets and
Speaker 3: management and how much you've been able to put to
Speaker 3: work as you kick off the new year, how much
Speaker 3: you're seeing opportunities to write new checks at the moment.
Speaker 2: First of all, thanks very much for inviting me here.
Speaker 2: Ed and Caroline great great to be here at Obvious.
Speaker 2: We've been busy. As you said, we have over one
Speaker 2: billion dollars under management. We believe at Obvious that the
Speaker 2: most valuable companies of our times would be companies which
Speaker 2: are solving humanity is biggest challenges.
Speaker 5: We believe that if we focus.
Speaker 2: With this intentionality around three broad areas. One is planet health,
Speaker 2: human health, and economic health. We'll create amazing companies for
Speaker 2: our times, and this kind of investing is what we
Speaker 2: call world positive investing.
Speaker 4: What I find so interesting about this area, Michel, is
Speaker 4: if you take health as an example, being a piece
Speaker 4: of software or even in the hardware space in North America,
Speaker 4: you're trying to build a product in a company that's
Speaker 4: selling it to a highly regulated sector, doing business with
Speaker 4: private and public orgs that have to go through tender
Speaker 4: processes that move really slow. And I wonder how difficult
Speaker 4: that makes life for you when you're trying to write
Speaker 4: an early check to a company. Who's the future you're assessing.
Speaker 2: Yeah, I think that's a great question. You know, all
Speaker 2: of us can agree that we believe that we're not
Speaker 2: getting banged for our healthcare buck. There's huge amount of
Speaker 2: opportunities in our healthcare system. We spend four trillion dollars
Speaker 2: in our healthcare system, but our outcomes are not that
Speaker 2: great as compared to other similar nations. We have an
Speaker 2: aging population, and this aging population is going to put
Speaker 2: more pressure on our healthcare system as well as our
Speaker 2: healthcare workers, who are wonderful friend tine workers. Healthcare is
Speaker 2: a regulated industry. Things move slowly, but it's good as
Speaker 2: new innovations come like AI that because of regulation, we
Speaker 2: are able to be very thoughtful upfront to make a
Speaker 2: positive den and solve these big problems in healthcare.
Speaker 5: Visa.
Speaker 4: I'm in New York today, just hopped over from San Francisco,
Speaker 4: where I'm normally based. Caroline, and I love to get
Speaker 4: the scoop. Okay, we just had JP Morgan where all
Speaker 4: of your industry pairs were in the city, all of
Speaker 4: the bankers, all of the vcs, all of the startup founders,
Speaker 4: and all of the bigger biotech companies. Is there any
Speaker 4: movement in the days that have followed, you know, any
Speaker 4: deals that have crossed your desk is a direct result
Speaker 4: of JP Morgan Healthcare Conference.
Speaker 1: Yeah, I know.
Speaker 2: JP Morgan always brings all the industry players here in
Speaker 2: our wonderful city in San Francisco. I think the critical
Speaker 2: thing all of us are talking about is what are
Speaker 2: the kind of big problems and what are the solutions?
Speaker 2: At obvious we focus on three broad areas in healthcare.
Speaker 2: One believe our healthcare payment system has to come of
Speaker 2: move towards more outcome driven versus paying for services only,
Speaker 2: and the industry calls this value based approach of healthcare.
Speaker 2: Number two, we believe the infrastructure of healthcare right now
Speaker 2: is being powered from a technology point of view for
Speaker 2: episodic care and for billing, and we need to move
Speaker 2: towards more holistic care, more longitudinal care, and thanks to
Speaker 2: new technologies like generative AI in future, move towards more
Speaker 2: intelligent care so that we can provide excellent care for
Speaker 2: every human being on the planet. And number three, from
Speaker 2: a biology point of view, we believe biology is not
Speaker 2: very well understood, so computational approaches as a way to
Speaker 2: decode biology so that we can build amazing drugs at
Speaker 2: great prices, fast timelines, and in personalized ways. So all
Speaker 2: the industry people are thinking about that at JPM, and
Speaker 2: we at Obvious have been investing in these three areas.
Speaker 3: How much are you thinking and how much your founders
Speaker 3: thinking about a political change and about potential for policymaking
Speaker 3: to be different under potentially a different president come the
Speaker 3: end of this year.
Speaker 2: Yeah again, I think all of us, whether we are
Speaker 2: Democrats or Republicans, we all agree that we are not
Speaker 2: getting banked for our healthcare bark and because we are
Speaker 2: not getting a bank for our healthcare work, all of
Speaker 2: us need to figure out how do we move towards
Speaker 2: solutions and supporting solutions. We are investing in innovation economy.
Speaker 2: We are thinking about what would happen in next ten years.
Speaker 2: We don't think about kind of you know what is
Speaker 2: going to happen in next quarter. And these problems are
Speaker 2: real and there's potential for companies will be using your technologies.
Speaker 4: Like Jennerald b I, Obvious Ventures co founder and managing
Speaker 4: director Vishor Vashish thank you so much for your time.
Speaker 4: It's time for talking tech and first start. This is
Speaker 4: something I reported overnight with our.
Speaker 5: Deals team and Ian King Chips.
Speaker 4: Startup Sarah Brass Systems is considering an initial public offering
Speaker 4: as soon as this year. Bloomberg sources say that AI
Speaker 4: supercomputer maker is aiming for the second half of the year.
Speaker 4: An IPO corend value Sarah brafs above the four billion
Speaker 4: dollar figure it achieved in its last round in twenty
Speaker 4: twenty one. And Microsoft is warning others about a Russian
Speaker 4: state sponsored hacking group. Last week, Microsoft accused the group,
Speaker 4: known as Midnight Blizzard or Cozy Bear of hacking into
Speaker 4: its executive's emails in December twenty twenty three. Earlier this week,
Speaker 4: HPE reported a data breach that was likely caused by
Speaker 4: the same group. Plus, after securing fifty million dollars in
Speaker 4: funding from investors, Crew Trim has officially become India's first
Speaker 4: AI startup to gain a billion dollar valuation. In mind,
Speaker 4: there's only been one month since the debuted. It's LLLM Caroline.
Speaker 3: Wow, things move fast. Meanwhile, so does the world of crypto.
Speaker 3: Let's just get a check in on where bitcoin is,
Speaker 3: because actually it's above forty one thousand dollars. It's well
Speaker 3: off the highs that we've seen in the month or so.
Speaker 3: But is there a slow down in outflows from the
Speaker 3: all important gray scale? Bitcoin trust strategist seem to think
Speaker 3: that maybe if we can slow that outflow, maybe we'll
Speaker 3: see some resilience in the price of bitcoin. Let's talk
Speaker 3: about the tokens. James Stephens with US BlueBag Intelligence and James,
Speaker 3: why should outflows of an ETF matter, particularly to a
Speaker 3: price point?
Speaker 12: Yeah, I mean so, the outflows of an ETF. They
Speaker 12: are part of the entire pie that makes up the
Speaker 12: price of bitcoin. Because you were dealing in spot bitcoin
Speaker 12: at the end of the day, So outflows of the
Speaker 12: etf are selling of bitcoin. That said, we've had net
Speaker 12: inflows since these things launched on the spot bitcoin ETFs
Speaker 12: in the US. You look at a little more broadly, though,
Speaker 12: you can see that open interests of futures in the
Speaker 12: CME Bitcoin futures that's down. You've had a little bit
Speaker 12: of outflows from Canadian ets, You've had a little bit
Speaker 12: of outflows from European bitcoin ETFs. So net, there has
Speaker 12: been net outflow. But what a lot of people seem
Speaker 12: to be missing is like these are just a piece
Speaker 12: of the pie. There's a lot of other things going
Speaker 12: on here. These are a small percentage point in what's
Speaker 12: actually happening to the bitcoin price.
Speaker 4: I'm reading the Bloomberg terminal and there's this sort of
Speaker 4: narrative around rebounding back toward forty two hundred US dollars betoken.
Speaker 4: But if you just look at a char we kind
Speaker 4: of tumbled down from that January eight high and we're
Speaker 4: having a sprightly uptick. Explain that that trading action relative
Speaker 4: to the actual mechanics of the products that have come
Speaker 4: online in the last three weeks.
Speaker 12: Yeah, so, I mean from my point of view, it's
Speaker 12: kind of been sideways since like January, right, So we
Speaker 12: had on the ETF launch, we had a massive spike
Speaker 12: up to forty nine, but for the most part we've
Speaker 12: been in this low forties ranges, dip below forty a
Speaker 12: little bit here and there, but I think a lot
Speaker 12: of the selling, I mean, we knew this was going
Speaker 12: to happen. There was a lot of money that was
Speaker 12: tied up in GBTC, institutional capital capital from bankruptcies like
Speaker 12: FTX DCG has a lot of money tied up in
Speaker 12: here that they probably need access to themselves. They're the
Speaker 12: parent company of grey Scales GBTC. So there's been like
Speaker 12: force selling in the market because people they want to
Speaker 12: get their capital out. But there has also been buying
Speaker 12: on the other side of this, So there was undoubtedly
Speaker 12: foreselling that caused what we've seen the in recent weeks.
Speaker 12: I think people are expecting this to slow down. We've
Speaker 12: seen some of it hinted at this, Like Caroline mentioned,
Speaker 12: we only saw three hundred and ninety four million come
Speaker 12: out of GBTC yesterday, which is which is a low
Speaker 12: of over the last couple of weeks James.
Speaker 3: Great to catch up with you never dials down when
Speaker 3: it comes to the world of the new ats you
Speaker 3: thank you from Blueberg Intelligence that does it for this
Speaker 3: edition of Bluemeg Technology. Nice to have you here.
Speaker 5: Thank you.
Speaker 4: Check out the pod from New York City and a
Speaker 4: little trip. There's the deats. This is Bloomberg