WEBVTT - Apple's AI-Focused Chips, ARK's Stake in OpenAI 0:00:01.560 --> 0:00:05.880 From Mahard where Innovations, Money and Power Collie in Silicon 0:00:05.960 --> 0:00:06.880 Vallet NBN. 0:00:07.200 --> 0:00:11.240 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.640 --> 0:00:27.000 I'm Caroline Hyde at Bloomberg's world headquarters in New York 0:00:27.440 --> 0:00:29.320 and I met Ludlow in San Francisco. 0:00:29.480 --> 0:00:31.240 This is Bloomberg Technology coming up. 0:00:31.320 --> 0:00:35.159 Semiconductors slide. That's on reports that China has told telecom 0:00:35.159 --> 0:00:38.680 carries to drop foreign chips. They'll bring you the details. 0:00:39.400 --> 0:00:43.200 Plus Apple plans to overhaul its entire line of Mac 0:00:43.280 --> 0:00:46.800 computers to add an AI focused in house processor or 0:00:46.840 --> 0:00:49.280 break down our exclusive Bloomberg reporting. 0:00:49.479 --> 0:00:52.320 And Kathy Wood buys into chatchybt Boom with a stake 0:00:52.360 --> 0:00:54.920 in Open AI. We'll discuss that and so much more 0:00:54.960 --> 0:00:56.880 throughout the hour, but first let's get over to these 0:00:56.920 --> 0:00:59.960 public trading markets. From a macro context, this is one 0:01:00.080 --> 0:01:02.240 we're seeing a search for safety today. There is warriors 0:01:02.240 --> 0:01:05.800 regarding Iran Israel. We're seeing geopolitical risks heightened, and maybe 0:01:05.880 --> 0:01:08.680 just as squaring away of certain volatility that we've seen 0:01:08.680 --> 0:01:11.240 throughout the week when it comes to concerns about CPIPPI. 0:01:11.560 --> 0:01:13.839 As we move towards the weekend, we're currently seeing, for once, 0:01:13.959 --> 0:01:16.560 equity is actually moving at the opposite way of a 0:01:16.560 --> 0:01:18.520 bomb market. Even though the bond market has been selling 0:01:18.520 --> 0:01:20.440 off and equities is still managed to ride higher. Today 0:01:20.440 --> 0:01:22.840 it's the opposite. Were actually seeing bond markets move higher. 0:01:22.880 --> 0:01:24.959 We're seeing money move into the havens that are the 0:01:25.000 --> 0:01:27.639 tenure yield. We're off by also eight nine basis points, 0:01:27.800 --> 0:01:29.720 so we're seeing money move there, money move into the 0:01:29.720 --> 0:01:32.240 Bloomberg Dollar Index, in fact, the highest level that since 0:01:32.240 --> 0:01:35.080 we've seen twenty twenty four. Head are up another seven 0:01:35.120 --> 0:01:37.560 tenths of a percent, but money coming out of equities 0:01:37.600 --> 0:01:39.840 as we worry about geopolitical tensions. We're off by one 0:01:39.840 --> 0:01:41.840 point four percent on the NASDAK and of course that 0:01:41.920 --> 0:01:43.880 key chip story that we're will be digging into in 0:01:43.920 --> 0:01:46.160 a moment. Move on, have a little look what's happening 0:01:46.400 --> 0:01:49.800 in another key risk asset, and actually surprisingly flat for 0:01:49.880 --> 0:01:52.120 bitcoin over all over the course of a week now. 0:01:52.320 --> 0:01:54.280 The volatility has been there to see on a day 0:01:54.280 --> 0:01:56.400 to day basis, and we rode higher at the start 0:01:56.480 --> 0:01:58.120 where we've just come off with some of those highs. 0:01:58.120 --> 0:02:00.560 Of course, a dollar strength is going to mean a 0:02:00.560 --> 0:02:02.600 bit of a bitcoin weakness, But what are you watching. 0:02:03.240 --> 0:02:05.240 We have a lot of technology stories to bring you 0:02:05.320 --> 0:02:08.160 this Friday. Apple is an interesting one, up seven ten 0:02:08.200 --> 0:02:12.519 to one percent after a four percent jump Thursday, which 0:02:12.560 --> 0:02:14.919 I think was the biggest jump since May of last year. 0:02:15.240 --> 0:02:16.520 Bloombos Mark German. 0:02:16.360 --> 0:02:19.520 Is reporting a complete overhaul of the Mac line, and 0:02:19.560 --> 0:02:21.960 we'll talk to Mark a little bit later in the program. 0:02:22.120 --> 0:02:24.519 Alphabet Paarent of Google down a percentage twenty is giving 0:02:24.600 --> 0:02:26.919 us a little bit back after hitting the two trillion 0:02:26.960 --> 0:02:32.240 dollar market cap mark Thursday. Recently, a lot more optimism 0:02:32.440 --> 0:02:35.240 that Google's starting to get it right on AI. They'll 0:02:35.280 --> 0:02:39.480 actually have products, particularly in the enterprise or commercial use case. 0:02:39.760 --> 0:02:41.840 But pulling back a little bit this Friday after a 0:02:41.919 --> 0:02:43.520 key milestone, we're keeping our. 0:02:43.400 --> 0:02:44.360 Eyes on the banks. 0:02:44.560 --> 0:02:48.760 Bank earnings kind of kick us off for earnings. Overall, 0:02:48.800 --> 0:02:50.840 you can see us kind of mixed fortunes, all of 0:02:50.880 --> 0:02:54.320 these three names moving to the downside going into it 0:02:54.360 --> 0:02:57.240 for us, so Blomow Technology AI. What's happening with aim 0:02:57.320 --> 0:02:58.880 banks was a big theme, but they all have their 0:02:58.880 --> 0:02:59.880 own individual stories. 0:03:00.120 --> 0:03:01.520 I'm not going to tell you the story. 0:03:01.840 --> 0:03:06.079 Bloomberg Shnali Bassak the correct person to bring us the banks, 0:03:06.160 --> 0:03:07.920 Rap joins us on set in New York and she 0:03:07.960 --> 0:03:10.920 brings you this story Snali, three big names, both moving lower, 0:03:10.960 --> 0:03:11.600 all moving lower. 0:03:11.680 --> 0:03:13.480 Yeah, all moving lower. And remember that is a little 0:03:13.480 --> 0:03:16.920 bit of a reversal. City Group had beat profit estimates 0:03:16.919 --> 0:03:19.560 here and we did see an earlier gain. Remember the 0:03:19.560 --> 0:03:21.360 market is lower on the day, but some of the 0:03:21.360 --> 0:03:24.200 declines they're seeing are quite stark. JP Morgan, for example, 0:03:24.240 --> 0:03:27.480 Intra Day is having its worst day since March of 0:03:27.560 --> 0:03:30.080 twenty twenty three, when we know times are very different. 0:03:30.160 --> 0:03:31.600 Remember ed we have JP. 0:03:31.480 --> 0:03:35.720 Morgan coming off six consecutive years of record revenue. So 0:03:35.800 --> 0:03:38.560 the big question is when analysts had expected them to 0:03:38.640 --> 0:03:41.400 raise the bar on that interest income, are they just 0:03:41.440 --> 0:03:44.560 being conservative when they have not done so, or are 0:03:44.560 --> 0:03:47.600 we seeing a consumer that is starting to, if not 0:03:47.800 --> 0:03:50.640 tap out, start to slow down a little bit in 0:03:50.720 --> 0:03:53.000 the way that they are starting to borrow and spend 0:03:53.080 --> 0:03:57.440 on those credit card businesses in particular. Now, some positive 0:03:57.440 --> 0:04:00.520 news for anyone watching Woomberg Technology in particular is you 0:04:00.560 --> 0:04:04.000 do see an uptick here in those underwriting businesses. IPOs 0:04:04.080 --> 0:04:06.440 are back baby, and you are seeing it in the 0:04:06.520 --> 0:04:10.320 number of big banks, and certainly you don't see the 0:04:10.360 --> 0:04:13.840 advisory fees jumping back just as strong yet, but they're 0:04:14.000 --> 0:04:16.800 pretty optimistic over there at JP Morgan what things are 0:04:16.800 --> 0:04:18.600 starting to look like in investment banking. 0:04:18.520 --> 0:04:21.200 And you didn't even mention Ai Shanana Bassec. We thank 0:04:21.240 --> 0:04:22.720 you so much for bring us the latest on and 0:04:22.800 --> 0:04:24.960 earnings context, and of course we brace ourselves for the 0:04:24.960 --> 0:04:27.040 technology earnings to start coming thick and fast at the 0:04:27.120 --> 0:04:29.120 end of next week. But for now we're focused in 0:04:29.440 --> 0:04:32.000 on basically all of the chip set to under propressure. 0:04:32.040 --> 0:04:34.000 We shine a light on Intel off by three point 0:04:34.040 --> 0:04:36.800 four percent, AMD, one of your worst performers, off by 0:04:36.839 --> 0:04:40.000 almost four percent. But in fact, every single member of 0:04:40.040 --> 0:04:43.159 the Semiconductor Index of Philadelphia Semiconductor Index is in the 0:04:43.200 --> 0:04:45.560 red on Semi off by more than four percent. But 0:04:45.600 --> 0:04:47.680 really this is as we see the reporting coming from 0:04:47.680 --> 0:04:50.279 the Wall Street Journal at the moment ed Beijing ordering 0:04:50.279 --> 0:04:53.000 Telecoon carriage, China Mobile and the likes to say no 0:04:53.760 --> 0:04:57.240 to foreign chips in their core networks by twenty twenty seven. 0:04:57.600 --> 0:04:59.880 This is really notable, but perhaps. 0:04:59.640 --> 0:05:04.479 Unsupp Yeah, it is another development in China's effort to 0:05:05.279 --> 0:05:08.760 onshore their own semiconductor industry. Right, so the journal one 0:05:08.839 --> 0:05:11.560 key part of their report is that actually the Ministry 0:05:11.600 --> 0:05:15.320 for Industry and Information Technology has given a timeline, call 0:05:15.360 --> 0:05:18.880 it a timeline or a deadline for not just China Mobile, 0:05:18.920 --> 0:05:22.640 but China Unicorn and China Telecom Corp. To swap out 0:05:22.680 --> 0:05:26.400 foreign chips, those being US chipmakers AMD Intel get twenty 0:05:26.400 --> 0:05:29.960 five percent revenue historically from China on the more commercial 0:05:30.080 --> 0:05:32.599 use case for chips and put in a domestic one. 0:05:32.600 --> 0:05:35.599 The question really is is there a domestic supply chain 0:05:35.640 --> 0:05:36.719 ready to support that. 0:05:36.960 --> 0:05:39.479 By twenty twenty seven They often might well hope so. 0:05:39.560 --> 0:05:41.960 And it's interesting and that almost front running. This was 0:05:42.000 --> 0:05:44.400 a great piece out of Bloomberg Intelligence to showing that 0:05:44.920 --> 0:05:49.000 Chinese export curbs are actually more of a risk the 0:05:49.240 --> 0:05:51.719 US export curbs at the moment. This is a tip 0:05:51.760 --> 0:05:53.280 for tat that you and I have been reporting on 0:05:53.440 --> 0:05:56.599 since we start first got together back in twenty twenty 0:05:56.600 --> 0:05:59.520 two of this technology show and really thinking about how 0:05:59.680 --> 0:06:02.360 US trying to restrain some of its own technology going 0:06:02.400 --> 0:06:04.719 into China. Well, unsurprisingly China is going to be doing 0:06:04.880 --> 0:06:07.800 the same in reverse, but this time actually BI saying 0:06:07.880 --> 0:06:10.400 China's export restrictions is going to be key policy risk 0:06:10.680 --> 0:06:13.320 to some of the US chip manufacturers that have in 0:06:13.400 --> 0:06:17.200 recent years built up their overall supply chain dependency on China. 0:06:17.320 --> 0:06:19.799 So I think that's a really another interesting shoot drop 0:06:19.839 --> 0:06:22.800 at the moment, whether it's export restrictions, whether it's at 0:06:22.839 --> 0:06:27.120 the moment import restrictions coming from China of US tech, I. 0:06:27.040 --> 0:06:28.880 Think we should just get to someone who's got skin 0:06:28.960 --> 0:06:31.480 in the game joining us now is Alison Porter, portfolio 0:06:31.560 --> 0:06:35.400 manager on the Global Technology Leaders and Sustainable Future Technology 0:06:35.400 --> 0:06:38.000 Funds at Janis Henderson, and I think I'm right in 0:06:38.040 --> 0:06:40.279 saying if we just pick out AMD as an example, 0:06:41.040 --> 0:06:41.919 it's one name. 0:06:41.760 --> 0:06:43.679 That you have exposure to, it that you hold. 0:06:44.120 --> 0:06:49.760 You know, the journal is reporting one specific industry case 0:06:50.120 --> 0:06:53.600 of a much broader thing where China wants its domestic 0:06:53.720 --> 0:06:55.839 entities to use domestic chips. 0:06:57.240 --> 0:06:58.080 Your response to. 0:06:58.040 --> 0:07:01.160 That, well, you know, I would put a little bit 0:07:01.160 --> 0:07:06.080 of this into context. China top down are doing foreign 0:07:06.160 --> 0:07:10.440 chips and tailcos. We don't see it as being, you know, 0:07:10.800 --> 0:07:15.280 a huge change because essentially that's a market that has 0:07:15.360 --> 0:07:19.120 been dominated by WAWI and the use of those and 0:07:19.200 --> 0:07:21.720 the use of in house chips has been around for 0:07:22.120 --> 0:07:26.760 a number of years now since chip companies were banned 0:07:26.760 --> 0:07:31.640 from supporting Bowies five G rollout and really in terms 0:07:31.720 --> 0:07:35.200 of China tail Co five D spend that actually peaked 0:07:35.960 --> 0:07:40.160 some time ago, and other areas like f PGAs you know, 0:07:40.200 --> 0:07:43.200 they've had a significant inventry correction. 0:07:43.960 --> 0:07:47.440 And for you know China who may want to replace 0:07:49.200 --> 0:07:50.320 US chips, but. 0:07:50.480 --> 0:07:55.240 Again you know actually using seven nanometer chips domestically, they 0:07:55.240 --> 0:07:57.560 don't have that supply yet. 0:07:57.640 --> 0:07:59.800 So I think for them to get to five and 0:08:00.120 --> 0:08:02.320 meter athena animeter, you're. 0:08:02.120 --> 0:08:04.840 Going to need You're going to need those for sixty deployment, 0:08:04.880 --> 0:08:08.480 which will ultimately need US chips by that time period. 0:08:08.560 --> 0:08:11.880 So you know, we think this is ongoing and wrangling, 0:08:11.880 --> 0:08:14.360 but in terms of the end markets, it's not hugely 0:08:14.400 --> 0:08:17.320 significant for the areas that we're focused on. 0:08:17.960 --> 0:08:20.240 Let's go to where you're focused there for Allison, because 0:08:20.240 --> 0:08:23.240 all of this comes in a current context of a 0:08:23.360 --> 0:08:27.080 threat over supply. We are all envisioning a whole new 0:08:27.080 --> 0:08:28.840 world on which we're going to be living in thanks 0:08:28.840 --> 0:08:33.079 to generative artificial intelligence. But we need the chips, need 0:08:33.120 --> 0:08:34.959 the supply chain, we need to be building these things, 0:08:35.040 --> 0:08:37.920 We need the energy. Alison, what chip names are going 0:08:37.960 --> 0:08:40.760 to be doing well in spite of geopolitical headwinds. 0:08:41.760 --> 0:08:45.840 Well, you know, when I started looking at technology stocks 0:08:45.840 --> 0:08:49.880 back in nineteen eighty six, I think about over a 0:08:50.040 --> 0:08:53.800 third of chip supply and was actually built in the 0:08:53.920 --> 0:08:58.840 US over thirty percent, and way forward to the pandemic. 0:08:58.960 --> 0:09:00.880 And that was down to twelve percent. 0:09:01.559 --> 0:09:05.480 So we see this ongoing focus of deglobalization. That's part 0:09:05.559 --> 0:09:10.400 of national security, it's part of national interest for AI. 0:09:10.920 --> 0:09:14.520 It's also part of the overall focus. 0:09:14.000 --> 0:09:19.840 On improving supply chain standards ESDUY standards throughout the technology 0:09:19.920 --> 0:09:20.880 resupply chain. 0:09:21.559 --> 0:09:22.800 And therefore we. 0:09:22.800 --> 0:09:27.640 Think that actually manufacturing is becoming a more competitive advantage 0:09:27.679 --> 0:09:34.160 more difficult to replicate. Many contract manufacturers, for example Jabel, 0:09:34.600 --> 0:09:38.800 Flixtronic the ability to be able to manufacture at scale. 0:09:39.200 --> 0:09:42.440 These companies have much lower margins and traditionally that could 0:09:42.440 --> 0:09:45.920 be easily moved around from competitors, but that's now becoming 0:09:46.040 --> 0:09:50.640 much more difficult at scale for many of the large 0:09:50.640 --> 0:09:54.160 OEMs to actually move their manufacturing capacity stay around. 0:09:54.600 --> 0:09:57.079 So we think that's one way that we see deglobalization. 0:09:57.960 --> 0:10:02.360 The chips AC actually play into year companies manufacture. 0:10:02.679 --> 0:10:07.199 As a global technology leaders and sustainable future tech fund 0:10:07.240 --> 0:10:09.680 Then do you worry that you're going to have to 0:10:09.679 --> 0:10:11.880 be sacrificing margin on some of the companies that you 0:10:11.880 --> 0:10:14.640 are investing in globally because they're having to you know, 0:10:15.040 --> 0:10:19.199 manufacture in more expensive places to secure supply chain or 0:10:19.600 --> 0:10:23.679 can you play start to play out well opportunities more 0:10:23.679 --> 0:10:25.880 globally that are being overlooked as we've all just focused 0:10:25.920 --> 0:10:27.400 in on a so called Magnificent seven. 0:10:28.880 --> 0:10:32.000 Yeah, I mean, I think there's you know, a significant 0:10:32.000 --> 0:10:35.720 focus on margins and efficiency. You know, the Morgan Stanley 0:10:35.760 --> 0:10:39.560 Technology Conference in March showed that where you know, the 0:10:39.640 --> 0:10:43.280 two most name terms from all of the presentations at 0:10:43.280 --> 0:10:48.160 that conference, it weren't AI, it wasn't chipsacked, it was 0:10:48.280 --> 0:10:51.920 in fact, margins and efficiency. And you see, you know, 0:10:51.960 --> 0:10:54.280 I think that's one of the really interesting aspects of 0:10:54.320 --> 0:10:55.960 where we are just now because we have a major 0:10:56.040 --> 0:10:59.079 new technology weave. But that's also hesting at a time 0:10:59.160 --> 0:11:01.760 when you know, we have this rising cost of capital 0:11:01.800 --> 0:11:06.280 and companies are really focused on efficiencies and improving margins, 0:11:06.320 --> 0:11:09.960 and that creates really interesting opportunities for investors. 0:11:10.280 --> 0:11:12.920 And it's a real stockpickers market, so it's. 0:11:12.760 --> 0:11:16.400 Not easy to generalize on sub sectors. It's very much 0:11:16.440 --> 0:11:19.319 about you know, active management, which is quite typical when 0:11:19.360 --> 0:11:24.600 we hit these technology inflection points. 0:11:23.200 --> 0:11:28.280 In this stock pickers market. Should you pick Apple? Apple 0:11:28.760 --> 0:11:33.920 is becoming increasingly attractive, it seems to you, guys, twelve 0:11:33.960 --> 0:11:38.480 month forward pay of twenty five times it had been downtrodden. 0:11:39.080 --> 0:11:40.280 Now is it a good name? 0:11:42.400 --> 0:11:47.680 We own Apple within our portfolio, but it's not been 0:11:47.960 --> 0:11:51.520 one of our largest holdings for quite some time. 0:11:52.120 --> 0:11:53.720 Apple's a tremendous company. 0:11:53.920 --> 0:11:58.480 It led technology in each of the last three ways, 0:11:58.600 --> 0:12:01.440 you know, through the PC wave, the mobile Internet. They 0:12:01.440 --> 0:12:05.320 were all really started by catalysts from product catalysts from Apple. 0:12:05.760 --> 0:12:06.240 Let's AI. 0:12:06.400 --> 0:12:10.559 We've was started by the product catalysts of Microsoft Chat, 0:12:10.679 --> 0:12:14.880 GPT and Open AI, and also in Vidia on Silicon 0:12:15.080 --> 0:12:18.840 and Apple's role and AI has yet to be defined, 0:12:18.880 --> 0:12:22.199 and we're sure that over the longer term they will 0:12:22.240 --> 0:12:24.920 continue to innovate, but right now they're not one of 0:12:25.000 --> 0:12:29.200 the early drivers of their genera to the IWAVE as. 0:12:29.040 --> 0:12:31.720 A sumporter, just a joy to have you on. Thank 0:12:31.760 --> 0:12:34.520 you Janis Henderson talking us through the winners and the 0:12:34.520 --> 0:12:36.320 losers you're looking at in the moment. And look, we 0:12:36.360 --> 0:12:38.840 were just finishing there on Apple and its focus or 0:12:38.920 --> 0:12:41.520 like thereof on AI. Let's just talk about Apple overhauling 0:12:41.520 --> 0:12:45.800 therefore its entire magline with in house processes that, guess what, 0:12:45.920 --> 0:12:48.240 focus on artificial intelligence. We're going to bring you the 0:12:48.320 --> 0:13:01.480 details next. This is BLUEBG Technology. It's looking to boost 0:13:01.520 --> 0:13:04.360 some lagging computer sales with an overhaul of its entire 0:13:04.440 --> 0:13:08.400 Mac line, planning to unveil an AI focused M four processor. 0:13:08.760 --> 0:13:11.760 Apple is aiming to release the updated computers beginning actually 0:13:11.840 --> 0:13:14.600 late this year extending into early next year. Joining us 0:13:14.679 --> 0:13:17.720 now with this scoop of course, Roomberg's Mark German and Mark, 0:13:18.080 --> 0:13:21.160 this is a very quick upgrade. Basically the cycle is 0:13:21.160 --> 0:13:21.680 so short. 0:13:22.800 --> 0:13:24.160 Yeah, good morning, thank you for having me. 0:13:24.200 --> 0:13:26.360 I mean, Apple Silicon started off on about a one 0:13:26.400 --> 0:13:28.720 point five year, one and a half year upgrade cycle, 0:13:29.080 --> 0:13:31.800 and they've accelerated that. The M three chips came a 0:13:31.840 --> 0:13:35.960 little sooner than anticipated in October of twenty twenty three. 0:13:35.960 --> 0:13:38.480 So just about six months ago. Now the M four. 0:13:38.400 --> 0:13:40.199 Chips are going to be coming even sooner than that, 0:13:40.360 --> 0:13:43.640 coming about one year after the M three processors. So 0:13:43.679 --> 0:13:47.920 they're planning new Imax Macminie's low and macropros high end 0:13:47.920 --> 0:13:51.199 nec pros. Like you said, for release between the end 0:13:51.200 --> 0:13:53.760 of twenty four and early twenty five. So this is 0:13:53.800 --> 0:13:57.319 an accelerated timeline. And it's interesting because this is now 0:13:57.400 --> 0:14:01.200 matching the timeline of processor upgrades that you see on 0:14:01.320 --> 0:14:04.120 the iPhone and that you once saw on the iPad 0:14:04.160 --> 0:14:04.920 but no longer. 0:14:05.320 --> 0:14:06.880 And this is pretty significant. 0:14:07.040 --> 0:14:10.360 In house silicon is becoming an even more important part 0:14:10.480 --> 0:14:13.720 of the company's story. There are other companies that are 0:14:13.720 --> 0:14:15.760 so hyper focused on the cloud and such. 0:14:15.800 --> 0:14:18.280 Apple is still focused on in device chips. 0:14:19.320 --> 0:14:21.600 I think that's where we should focus mark. 0:14:21.640 --> 0:14:25.560 Our last guest, Alison Porter at Janis, is an Apple shareholder, 0:14:26.000 --> 0:14:28.320 and what she just told us is that to her mind, 0:14:28.400 --> 0:14:32.280 Apple's role in AI has yet to be defined. But 0:14:32.360 --> 0:14:35.000 I look at where the stock closed Thursday after you 0:14:35.080 --> 0:14:39.200 published your report, and again the momentum today, and I 0:14:39.200 --> 0:14:42.200 think the market sees an AI story. What are you 0:14:42.240 --> 0:14:44.640 hearing internally at Apple about this side of it? 0:14:46.960 --> 0:14:50.800 The AI story at Apple exists, and it's almost the 0:14:50.880 --> 0:14:53.360 complete opposite of what you're seeing from other companies. 0:14:53.680 --> 0:14:54.680 There's so much hype. 0:14:54.520 --> 0:14:58.240 Around in Nvidia because of their cloud infrastructure that powers 0:14:58.320 --> 0:14:59.320 artificial intelligence. 0:14:59.360 --> 0:15:02.640 There's Chat, g ABT and Gemini. Those are all cloud products. 0:15:02.760 --> 0:15:06.360 Apple's LM is an on device approach, meaning it runs 0:15:06.480 --> 0:15:09.440 entirely on the device, which makes it more privacy centric, 0:15:09.480 --> 0:15:13.160 but also in some cases it can perform actions far 0:15:13.240 --> 0:15:15.640 quickly there is no lag time because it's on the 0:15:15.680 --> 0:15:18.960 devices themselves. And these new AI chips are the upgraded 0:15:19.000 --> 0:15:22.280 AI components that you're seeing on the M four during 0:15:22.320 --> 0:15:25.400 later this year, as well as the aaighteen pro chip 0:15:26.080 --> 0:15:29.360 that you'll see in the iPhone sixteen Pro and Promax 0:15:29.440 --> 0:15:34.480 Leader this year. Upgraded neural engines, improved processing, improved microphones 0:15:34.760 --> 0:15:38.800 to really optimize artificial intelligence and serri on a device. Now, 0:15:38.960 --> 0:15:41.520 we should note that Apple has been shipping neural engines 0:15:41.560 --> 0:15:44.640 those AI blocks inside of their chips for several years now, 0:15:44.680 --> 0:15:47.920 but this is going to be dubbed the biggest upgrade 0:15:47.920 --> 0:15:50.400 to the neural engine since that component was first released 0:15:50.400 --> 0:15:51.040 several years ago. 0:15:52.000 --> 0:15:55.240 Blue bos Mark German brilliant, thank you. Coming up on 0:15:55.280 --> 0:15:58.360 the show Docu sign unveiling a new platform and an 0:15:58.360 --> 0:16:01.120 expansion of his company's rategy. We're going to discuss that 0:16:01.160 --> 0:16:04.760 with the CEO, Alan Tigerson. That's next. This is Bloomberg, 0:16:19.720 --> 0:16:22.120 this is Talking Tech and in the news Tokyo based 0:16:22.160 --> 0:16:27.280 startup Sakana AI is capitalizing on surging interest from Japanese firms. 0:16:27.320 --> 0:16:30.160 Founded by ex Google researchers. 0:16:29.680 --> 0:16:34.240 Sicana won government supercomputer grants and partnerships with blue chip companies. 0:16:34.280 --> 0:16:38.080 This isn't an effort to build out Japan's AI ecosystem. 0:16:38.280 --> 0:16:42.520 Sakana uses small data sets to train low cost GENAI 0:16:42.600 --> 0:16:45.160 models that could be used to ramp up a company's 0:16:45.400 --> 0:16:46.680 AI capabilities. 0:16:46.760 --> 0:16:48.240 Plus, Samsung is. 0:16:48.160 --> 0:16:50.800 Set to unveil a forty four billion dollar push into 0:16:51.000 --> 0:16:54.600 US chip making as soon as next week. According to sources, 0:16:54.960 --> 0:16:58.440 they're going to outline a project in Taylor, Texas, after 0:16:58.520 --> 0:17:00.200 securing more than six billion. 0:17:00.520 --> 0:17:01.520 From government grants. 0:17:01.600 --> 0:17:04.440 The award marks the latest push from the Biden administration 0:17:04.760 --> 0:17:08.439 to revitalize chip making in the United States, and the 0:17:08.480 --> 0:17:12.120 House is set to try again on advancing the reauthorization 0:17:12.280 --> 0:17:16.280 of a US spy bill. The Foreign Intelligent Surveillance Act, 0:17:16.320 --> 0:17:19.639 failed to reach the floor on Wednesday over GOP concerns 0:17:19.640 --> 0:17:23.719 of privacy and section seven zero two that provision allows 0:17:23.760 --> 0:17:28.360 the surveillance of foreign targets and the potential to warrant 0:17:28.400 --> 0:17:31.399 leslie survey americans in contact with them. 0:17:31.440 --> 0:17:33.280 The bill underwent a revision. 0:17:33.200 --> 0:17:36.320 To a two year period from five in an attempt 0:17:36.480 --> 0:17:38.879 to swing its Republican critics. 0:17:38.920 --> 0:17:43.200 Caroline, let's move away from politics to product announcements. Now 0:17:43.280 --> 0:17:46.800 dog you sign holdings and it's just annual Momentum Music 0:17:46.840 --> 0:17:49.439 conference this week, and it set us up with some 0:17:49.480 --> 0:17:53.960 new products that include an intelligent agreement management platform. I'll 0:17:53.960 --> 0:17:57.160 stick into exactly what that is, Doc sign CEO Alan Tinkerson, 0:17:57.200 --> 0:18:01.640 and please to welcome you, thanks for joining category. It's 0:18:01.680 --> 0:18:03.840 different from what people already experience. 0:18:04.680 --> 0:18:07.840 Well, so people know us mostly for a signature and 0:18:07.880 --> 0:18:10.200 that will continue. But if you think about agreements, they 0:18:10.240 --> 0:18:13.159 go to an entire journey, and there is pain and 0:18:13.200 --> 0:18:15.560 inefficiency at every point in that journey. If you think 0:18:15.560 --> 0:18:18.959 about salespeople from when they maybe reach agreement and principle 0:18:19.000 --> 0:18:21.240 to when they can finally sign an agreement, or a 0:18:21.280 --> 0:18:23.800 purchasing manager who's trying to figure out whether their vendors 0:18:23.840 --> 0:18:26.600 are living up to their obligations, or a recruiter trying 0:18:26.640 --> 0:18:29.080 to close a candidate, those are all at their core 0:18:29.280 --> 0:18:33.480 agreement problems. And we are delivering a suite to help 0:18:33.600 --> 0:18:37.880 companies solve their entire range of agreement problems and so. 0:18:37.800 --> 0:18:40.199 I'm a company, I have suddenly a central depository. I 0:18:40.240 --> 0:18:42.800 know exactly where all of my legal agreements are, and 0:18:42.840 --> 0:18:46.080 I can use generative AI to summarize them to ensure 0:18:46.119 --> 0:18:48.640 that I'm learning the most see whether ensure that they're 0:18:48.640 --> 0:18:52.359 basically following a theme, all in line and purpose. Why 0:18:52.440 --> 0:18:54.760 is this different from what perhaps when you unveil it 0:18:54.800 --> 0:18:57.000 in late May, what box cauld suddenly bring us with 0:18:57.080 --> 0:18:59.960 their central repository system and suddenly bring in GENAI. 0:19:00.240 --> 0:19:02.400 Yes, well, there are lots of folks who do storage 0:19:02.760 --> 0:19:05.760 and more generally manage documents. 0:19:05.359 --> 0:19:07.240 But agreements are very, very unique. 0:19:07.359 --> 0:19:09.520 They have a particular structure, there's a tremendous amount of 0:19:09.560 --> 0:19:12.199 data in and you need to understand the context. And 0:19:12.240 --> 0:19:14.879 so we are I think experts are that the largest players. 0:19:14.880 --> 0:19:17.639 So they've focused on agreements and have a tremendous amount 0:19:17.640 --> 0:19:21.040 of domain knowledge, understanding of the intricacy of agreements. And 0:19:21.119 --> 0:19:24.160 there's also workflow associated agreements, and then we're bringing out 0:19:24.200 --> 0:19:27.280 tools to help companies deliver those in a much more 0:19:27.280 --> 0:19:28.720 delightful and digitally neative way. 0:19:30.160 --> 0:19:34.399 Alan, Good morning, Zed in San Francisco. In the history 0:19:34.400 --> 0:19:38.200 of technology, there are companies that completely reinvent themselves, right. 0:19:38.200 --> 0:19:39.680 Take BlackBerry as an example. 0:19:40.119 --> 0:19:44.160 You used to make smartphones, it now largely makes automotive software. 0:19:45.440 --> 0:19:49.119 The E signature product is still everything for you guys. 0:19:49.400 --> 0:19:51.600 But I wonder if you are trying to tell your 0:19:51.600 --> 0:19:54.440 investors you're used as your audience, that you see a 0:19:54.480 --> 0:19:58.200 future for DocuSign where it's something different beyond E signature, 0:19:58.480 --> 0:20:00.960 where the main business is not E signature. 0:20:01.720 --> 0:20:04.960 Well, certainly beyond these signature, but E Signature will be 0:20:05.200 --> 0:20:07.600 critical to docu sign for years to come. It's such 0:20:07.600 --> 0:20:10.720 a valuable product, solves such a unique pain point very well, 0:20:11.119 --> 0:20:13.720 and after all, the signature moment is a pivotal to 0:20:13.720 --> 0:20:17.000 have the highest value moment in that agreement journey. What 0:20:17.040 --> 0:20:19.360 we're doing here is where we are expanding and providing 0:20:19.359 --> 0:20:22.680 a full suite of offerings related to every step in 0:20:22.720 --> 0:20:25.240 the agreement journey. No one has done that before. I 0:20:25.240 --> 0:20:27.399 think we're the best position to do it. We have 0:20:27.480 --> 0:20:29.840 the trust, we have the customer reach and the expertise, 0:20:30.280 --> 0:20:33.080 and we're benefiting from recent developments in AI and so 0:20:33.119 --> 0:20:35.200 we're bringing all that to the table and I think 0:20:35.240 --> 0:20:36.000 now it's our moment. 0:20:37.119 --> 0:20:39.280 Alan, You've told a lot about doc You sign being 0:20:39.320 --> 0:20:43.160 in transition. In considering where you are in that transition, 0:20:43.280 --> 0:20:47.480 give yourself a scorecard ABC on your performance and where 0:20:47.480 --> 0:20:50.479 you've been in delivering that well. 0:20:50.600 --> 0:20:53.080 I like to measure outcomes, so I was certainly wouldn't 0:20:53.119 --> 0:20:55.639 hear myself at a yet. I think we are making 0:20:55.680 --> 0:20:56.520 really good progress. 0:20:56.600 --> 0:20:57.080 Give it a bit. 0:20:57.160 --> 0:21:00.679 We have done I think an excellent job idolizing the 0:21:00.720 --> 0:21:04.680 innovation engine now bringing out a really really robust suite 0:21:04.760 --> 0:21:08.640 of products informed by years of customer feedback and tremendous 0:21:08.680 --> 0:21:11.840 engagement for beta customers. And now it's time to take 0:21:11.880 --> 0:21:13.960