WEBVTT - Nvidia’s Magic Fades 0:00:01.440 --> 0:00:05.120 From the heart where Innovation, money and power Collie in 0:00:05.200 --> 0:00:06.680 Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.000 This is Bloomberg Technology with Caroline Hyde and Ed lud. 0:00:10.880 --> 0:00:25.800 Love live from New York. 0:00:25.880 --> 0:00:28.160 This is Bloomberg Technology coming up in video. 0:00:28.200 --> 0:00:28.920 Says it's new. 0:00:28.840 --> 0:00:31.200 Chipper on track, but the rush to get the product 0:00:31.280 --> 0:00:32.440 lineup out the door is. 0:00:32.400 --> 0:00:34.280 Proving more costly than expected. 0:00:34.640 --> 0:00:37.599 Plus, Bitcoin rises to new heights as the Trump transition 0:00:37.680 --> 0:00:41.519 team weighs the creation of a dedicated white house cryptopost 0:00:42.080 --> 0:00:44.360 and the CEO of Palo Alto Networks joins on the 0:00:44.360 --> 0:00:45.360 heels of its earnings. 0:00:45.479 --> 0:00:47.199 We'll discuss how AI can. 0:00:47.080 --> 0:00:50.120 Help stop the threats of the future, but first we 0:00:50.240 --> 0:00:53.479 get straight to the world of in video and indeed 0:00:53.520 --> 0:00:55.640 the points trag that it's having on the Nasdaq is 0:00:55.760 --> 0:00:57.800 somewhat We're off by eighteen percent, but it's been a 0:00:57.880 --> 0:00:59.480 volatile day of trade as people. 0:00:59.240 --> 0:00:59.840 Try to pass. 0:01:00.320 --> 0:01:04.160 Ultimately, how strong future growth still looks under in video 0:01:04.200 --> 0:01:07.080 and indeed the supply side headaches that much has been discussed. 0:01:07.120 --> 0:01:10.080 Let's get straight to within King and look, we'd all 0:01:10.160 --> 0:01:14.000 been fretting about Blackwell the product lineup, how easily it 0:01:14.040 --> 0:01:16.959 is to get into customers. Hans did Jensen Wong manage 0:01:16.959 --> 0:01:18.280 to calm investors' nerves? 0:01:19.160 --> 0:01:21.840 I mean, obviously to an extent. We haven't seen the 0:01:21.880 --> 0:01:26.160 massive fall off that we've seen manifest previously with concerns. 0:01:26.480 --> 0:01:29.440 He talked about, Yeah, we're getting it to market. We're 0:01:29.440 --> 0:01:31.800 actually going to be probably getting more to market than 0:01:31.880 --> 0:01:34.520 we had thought we would. At the same time, it's 0:01:34.560 --> 0:01:35.360 going to cost us. 0:01:36.200 --> 0:01:38.600 Yeah, let's just weigh in on the profit margins, because 0:01:38.920 --> 0:01:41.959 you do such a great job at giving the context here. Ultimately, 0:01:41.959 --> 0:01:45.040 this is a company that gave us ninety four percent 0:01:45.080 --> 0:01:47.720 increase in revenue in the third courting guided to another 0:01:47.800 --> 0:01:50.880 seventy percent increase, give or take plus or minus two percent. 0:01:51.280 --> 0:01:53.760 But the profitability is what just coming down ever so 0:01:53.880 --> 0:01:56.279 slightly to what seventy three to seventy four percent margin? 0:01:57.320 --> 0:01:59.520 That's right, I mean, I think that's the right way 0:01:59.560 --> 0:02:02.360 to look at it. They've set such high expectations, right, 0:02:02.640 --> 0:02:05.360 they were at seventy five percent, which had narrowed slightly. 0:02:05.400 --> 0:02:08.160 But seventy five percent is like software mhudgeons, Right, this 0:02:08.280 --> 0:02:13.200 is a semiconductor company, right, you know, AMD's twenty points 0:02:13.280 --> 0:02:15.960 south of that. You know, Intel isn't even in the 0:02:15.960 --> 0:02:18.600 same zip code right now. So yes, they're losing a 0:02:18.600 --> 0:02:21.240 few points because they're spending more in engineering to get 0:02:21.240 --> 0:02:23.840 those chips out, get those systems in place quicker. 0:02:24.320 --> 0:02:26.400 But really this is a very very high bar. 0:02:27.120 --> 0:02:30.840 And then full production comes what the back end of 0:02:30.919 --> 0:02:34.480 their fiscal twenty twenty five in. But I suppose they 0:02:34.520 --> 0:02:37.040 still have to address the issue that. Sure they're getting 0:02:37.080 --> 0:02:39.080 them out the door, but it's to the same kind 0:02:39.160 --> 0:02:42.960 of companies. How are they managing to diversify their demand base? 0:02:43.840 --> 0:02:45.840 Well, I mean that was one of the things that 0:02:45.840 --> 0:02:49.160 we saw in the release. They're not right. The amount 0:02:49.200 --> 0:02:52.920 of revenue coming from those big companies, the Microsoft's, the 0:02:52.960 --> 0:02:56.720 Amazons has actually gone up from forty five percent to 0:02:56.760 --> 0:02:59.960 fifty percent, So like half of the most important divisi 0:03:00.200 --> 0:03:02.640 that they have is dependent upon just a few companies. 0:03:03.080 --> 0:03:05.839 Investors are definitely concerned about that. Why they're concerned about 0:03:05.880 --> 0:03:08.799 that because these companies are making their own chips, trying 0:03:08.800 --> 0:03:11.000 in effect to replace in video and everybody else that 0:03:11.080 --> 0:03:13.040 supplies them. 0:03:13.160 --> 0:03:16.720 Is there any real competition here, because we've heard it 0:03:16.760 --> 0:03:19.280 time and time again that as much as AMD tries, 0:03:19.320 --> 0:03:21.240 as much as Intel tries, really in videos, the any 0:03:21.280 --> 0:03:22.240 game in time for here. 0:03:23.760 --> 0:03:26.560 Yeah, I mean that that definitely appears to be the case. 0:03:26.639 --> 0:03:30.560 I mean that any questions about and demand, any questions 0:03:30.600 --> 0:03:33.400 about losing market share were just irrelevant, right. I mean 0:03:33.440 --> 0:03:37.600 they talked about incredible demand, demand that they cannot meet 0:03:37.880 --> 0:03:40.840 right now. So you know that part of the quote, 0:03:40.920 --> 0:03:45.880 the story is really in the future, if at all, Ian. 0:03:45.760 --> 0:03:48.800 King very much in the present when it comes to 0:03:48.840 --> 0:03:50.440 the market move, We really appreciate it. 0:03:50.480 --> 0:03:50.840 Thank you. 0:03:51.280 --> 0:03:52.720 Let's get you more contact and what it means to 0:03:52.720 --> 0:03:55.960 the rest of the market. Epshkere is with US Senior 0:03:56.000 --> 0:03:58.280 and a list at Swiss Quote and Ibet. We turned 0:03:58.320 --> 0:04:03.720 to you for the market implications because we were anticipating 0:04:03.760 --> 0:04:06.680 as much as a three hundred billion dollar market cap 0:04:06.760 --> 0:04:10.000 swing up to eight percent move higher or lower. Actually, 0:04:10.160 --> 0:04:12.760 a lack of holatility must be a slight sign of relief. 0:04:14.080 --> 0:04:17.000 Well, actually it is because there has been a few 0:04:17.240 --> 0:04:20.840 red flags in yesterday's report. As A was just talking 0:04:20.880 --> 0:04:24.320 about the pressure on the productivity levels due to the 0:04:24.320 --> 0:04:27.400 manufacturing challenges for the black Bell chip is one of them. 0:04:27.560 --> 0:04:30.200 The fact that the big technology companies make up to 0:04:30.200 --> 0:04:34.320 fifty percent of Nvidia's revenue is another sticky point. Yet 0:04:34.680 --> 0:04:39.279 the results have been strong and despite these small red 0:04:39.320 --> 0:04:43.080 flags that we got yesterday from the report, well, the aftermass, 0:04:43.120 --> 0:04:45.880 the immediate selloff has been only twenty half percent, and 0:04:45.960 --> 0:04:49.120 this morning we don't see that the Nvidia shares are 0:04:49.160 --> 0:04:52.479 being sold at the level that we would expect them 0:04:52.560 --> 0:04:55.680 to with such a disappointment, or if with the small 0:04:55.720 --> 0:04:59.120 disappointment from investors, we would think that any miss that. 0:04:59.080 --> 0:05:00.640 Would be a excel off. 0:05:00.880 --> 0:05:04.839 Yet we just see that the market is quite resilient. 0:05:05.320 --> 0:05:08.200 We've got a bit too used to him managing to 0:05:08.279 --> 0:05:10.560 smash expectations. 0:05:09.760 --> 0:05:11.480 That he had set and that of the market. 0:05:11.560 --> 0:05:14.280 And look, you only beat them slightly when it comes 0:05:14.320 --> 0:05:18.800 to their own internal guidance IPEC. The rest of the market, though, 0:05:19.000 --> 0:05:23.320 had been anticipating, well, maybe a questioning around valuation. What 0:05:23.440 --> 0:05:25.080 do you make of the fact that we're still up 0:05:25.160 --> 0:05:27.919 let's call it two hundred percent over the course of 0:05:27.920 --> 0:05:31.320 this year. It's an extraordinary run up for one particular company. 0:05:31.360 --> 0:05:32.240 Can it be sustained? 0:05:33.480 --> 0:05:36.320 Well, it is absolutely an extraordinary run up, and now 0:05:36.360 --> 0:05:40.599 we are questioning the valuation levels, especially if. 0:05:40.440 --> 0:05:41.880 The demand started to solve. 0:05:42.080 --> 0:05:44.040 This is not the case right now, but at some 0:05:44.200 --> 0:05:47.560 point we expect that the demand from the big technology 0:05:47.600 --> 0:05:50.520 companies will start swing, and because this is a big 0:05:50.640 --> 0:05:53.760 chunk of the company's revenue, that's going to be a headache. 0:05:53.880 --> 0:05:54.800 There's another thing. 0:05:55.080 --> 0:05:58.080 Right now, the competition is not a problem because Nvidia 0:05:58.120 --> 0:06:01.000 has got the most expensive but the most premium chips. 0:06:01.120 --> 0:06:04.360 They've got the best performance, and the big technology companies 0:06:04.400 --> 0:06:07.240 are looking for those. But if the demand was to 0:06:07.279 --> 0:06:10.400 slow for the big technology companies, then Nvidia will have 0:06:10.480 --> 0:06:13.520 to find other customers. And these other customers may not 0:06:13.600 --> 0:06:16.320 be looking for the premium solutions. They will be just 0:06:16.360 --> 0:06:19.360 looking for the solutions to manage their day to day 0:06:19.400 --> 0:06:23.080 businesses and increase their productivity and increase their costs. But 0:06:23.480 --> 0:06:27.200 they would also up for maybe more cost efficient and 0:06:27.560 --> 0:06:32.360 well slightly more affordable chip solutions than the Nvida offers. 0:06:32.360 --> 0:06:35.080 And I think that that's going to be a major issue. 0:06:35.160 --> 0:06:37.680 We're going to be talking exactly that later in the programming. 0:06:38.040 --> 0:06:41.880 For now, when we think about the context of in video, 0:06:42.320 --> 0:06:44.520 about twenty percent of all the run up in the 0:06:44.560 --> 0:06:46.120 S and P five hundred is thanks to this one 0:06:46.160 --> 0:06:48.880 particular name this year, about twenty five percent of all 0:06:48.920 --> 0:06:52.919 earnings per share increase. How key man risk is in 0:06:53.000 --> 0:06:55.839 video and how does one protect themselves against that. 0:06:56.920 --> 0:07:00.960 Well, obviously, the AI rally and especially has been one 0:07:01.000 --> 0:07:03.719 of the major pillars of the market rally in the 0:07:03.800 --> 0:07:06.320 US that we have seen over the past two years. 0:07:06.680 --> 0:07:10.840 So anything any lack of epissites for Nvidia from now 0:07:10.880 --> 0:07:14.040 on is going to have a negative impact on the 0:07:14.120 --> 0:07:18.160 market sentiment. Now, we have seen that AI rarely broaden 0:07:18.240 --> 0:07:22.120 toward the other sectors, other non technology sectors. But it's 0:07:22.120 --> 0:07:26.000 worth noting that this company has added so much upside 0:07:26.040 --> 0:07:29.680 pressure to the SMP five hundred, So anything less than 0:07:30.120 --> 0:07:34.160 any kind of loss of momentum here will obviously be 0:07:34.600 --> 0:07:37.800 well quite negative for the SMP five hundred, especially knowing 0:07:37.840 --> 0:07:40.960 that the SMP five hundred today is struggling near its 0:07:41.000 --> 0:07:42.360 all time high levels. 0:07:43.000 --> 0:07:46.640 So when you're sat ultimately in Europe and you're thinking 0:07:46.680 --> 0:07:49.480 about a global perspective, it should people be broadening out 0:07:49.520 --> 0:07:52.200 when it comes to just magnificent seven, let alone just 0:07:52.240 --> 0:07:55.160 in video litlone just US bets on technology. 0:07:57.240 --> 0:07:59.840 Well, when it comes to technology, I really believe that 0:08:00.000 --> 0:08:02.640 the US is still in a very dominant position, So 0:08:02.680 --> 0:08:06.920 you wouldn't be going to to Europe for technology solutions. 0:08:07.040 --> 0:08:09.800 There's one place that we actually like, and that's Japan, 0:08:10.000 --> 0:08:12.640 especially given that the government there is going to give 0:08:12.760 --> 0:08:15.400 some more support to their technology industry. 0:08:15.640 --> 0:08:18.120 So in terms of geographical. 0:08:17.640 --> 0:08:21.760 Diversification, Japan could be a good solution. There is China 0:08:21.840 --> 0:08:24.440 as well that we have been looking at, but we 0:08:24.480 --> 0:08:27.679 are still not positive for China because well, the chipwoar 0:08:27.840 --> 0:08:31.880 has weighed greatly on sentiment and on the progress of 0:08:32.000 --> 0:08:35.160 the technology advancement there, So we're not really looking at 0:08:35.240 --> 0:08:38.240 China right now. So one place that investors could be 0:08:38.240 --> 0:08:40.680 looking at would be Japan, but other than that, the 0:08:40.760 --> 0:08:43.000 US is still in a very dominant position. So if 0:08:43.000 --> 0:08:45.520 you want to invest in tech, well you would just 0:08:45.600 --> 0:08:47.560 the first place you would like to go is the 0:08:47.640 --> 0:08:50.720 US because this is where you have massive upside potential. 0:08:50.920 --> 0:08:52.920 So back the clients that are calling you, are they 0:08:52.920 --> 0:08:55.760 saying they want to add to Invidia, for example, as 0:08:55.760 --> 0:08:57.840 a name at these particular levels or do they just 0:08:58.080 --> 0:09:01.040 keep their exposure where it is well. 0:09:01.080 --> 0:09:03.520 To be perfectly honest with you, I don't have clients 0:09:03.520 --> 0:09:06.120 who would like to sell Nvidia, but at the current 0:09:06.200 --> 0:09:09.800 levels people are more skeptical about entering into. 0:09:09.600 --> 0:09:10.600 The NVDA shares. 0:09:10.720 --> 0:09:13.480 What I mostly here is what level would be a 0:09:13.520 --> 0:09:16.800 good entry level if we start seeing a price pullback 0:09:16.800 --> 0:09:20.000 from the actual level, So people will still be buying 0:09:20.160 --> 0:09:23.679 MVDA shares from this point on, but they're still at 0:09:23.720 --> 0:09:27.040 disvaluations at this point in time, they will be looking 0:09:27.120 --> 0:09:29.040 for good entry levels. 0:09:29.880 --> 0:09:34.800 Is there other names, smaller chip rivals that you've thought 0:09:34.960 --> 0:09:36.240 would be a better entry point. 0:09:37.520 --> 0:09:39.880 Well, I think that AMD is at a good position 0:09:40.040 --> 0:09:42.840 right now. Obviously, they do not offer the same potential 0:09:42.880 --> 0:09:46.360 and d do not offer the same margins than Nvidia does, 0:09:46.400 --> 0:09:50.600 but it's share price have come down quite significantly to 0:09:50.679 --> 0:09:54.560 offer an interesting entry point at the current levels. It's 0:09:54.600 --> 0:09:58.040 also to be said that AMD is about to launch 0:09:58.280 --> 0:10:01.240 two powerful chips, one for the end of this year 0:10:01.520 --> 0:10:04.480 and one for next year. And what's interesting with AMD 0:10:04.760 --> 0:10:08.240 is they may not be as powerful as premium as 0:10:08.320 --> 0:10:11.400 Nvidia chips, but they're clearly going to be more cost 0:10:11.440 --> 0:10:14.400 efficient and there are many many sectors and companies out 0:10:14.440 --> 0:10:17.640 there that will be looking for more cost efficient and 0:10:17.720 --> 0:10:22.160 more affordable solutions, and AMD could actually help fulfilling that gap. 0:10:22.559 --> 0:10:25.400 MD currently trading at forty one times future earnings compared 0:10:25.440 --> 0:10:28.840 to about a fifty times for a video effect Oskodeshka. 0:10:28.880 --> 0:10:29.800 Thank you so much for your time. 0:10:29.880 --> 0:10:33.640 Seenior analyst at Swiss Code Now coming up bitcoin ooh, 0:10:33.800 --> 0:10:37.040 nearing one hundred thousand dollars. The Trump dream is looking 0:10:37.080 --> 0:10:41.439 towards creating a new crypto role. Well that next is 0:10:41.440 --> 0:10:59.400 the Bluebeg technology Bitcoin's massive run. Well, let's see the 0:10:59.440 --> 0:11:01.240 digital asset edging now towards one. 0:11:01.240 --> 0:11:02.480 Hundred thousand dollars. 0:11:03.000 --> 0:11:05.520 This as the Trunk team is said to be mulling 0:11:05.559 --> 0:11:08.960 over creating its first ever crypto role that would oversee 0:11:08.960 --> 0:11:13.000 cryptocurrency policy making. Marlbrenberg's Kaylee lines chows us Now, so 0:11:13.160 --> 0:11:13.880 just what is. 0:11:13.840 --> 0:11:17.480 Being weighed right now? Well, a lot of it, Caroline 0:11:17.520 --> 0:11:19.560 is still up in the area. This would be the 0:11:19.600 --> 0:11:22.320 first crypto specific role in the White House, and in 0:11:22.360 --> 0:11:25.080 many ways this would signal that Donald Trump was serious 0:11:25.080 --> 0:11:28.080 about the crypto related promises he made on the campaign trail, 0:11:28.080 --> 0:11:30.840 which of course included making the US the bitcoin capital 0:11:30.880 --> 0:11:33.040 of the world, firing the current chair of the SEC, 0:11:33.160 --> 0:11:35.400 Gary Gensler. He also had said he wanted to make 0:11:35.760 --> 0:11:39.080 the first ever crypto presidential Advisory Council, So in some 0:11:39.120 --> 0:11:41.400 ways it shouldn't be all too surprising that he is 0:11:41.440 --> 0:11:44.079 looking at a role like this, But it's not abundantly 0:11:44.120 --> 0:11:46.720 clear at this time what form this would actually take, 0:11:46.760 --> 0:11:48.640 if this is going to be an actual White House 0:11:48.640 --> 0:11:51.240 staff position or just someone who is more of a 0:11:51.320 --> 0:11:53.720 crypto zar quote unquote if you will. I was speaking 0:11:53.720 --> 0:11:55.480 to a source on this this morning who said, yes, 0:11:55.520 --> 0:11:57.360 this is all very up in the air. They are 0:11:57.400 --> 0:11:59.880 seriously looking at this, but it's just not clear what 0:12:00.160 --> 0:12:02.040 kind of power would come win this role. If they 0:12:02.040 --> 0:12:04.880 are going to have actual staff reporting into them, for example, 0:12:04.920 --> 0:12:06.960 if they will just be advising, or if this really 0:12:07.040 --> 0:12:10.080 ultimately is going to be about liaising and coordinating. 0:12:10.080 --> 0:12:11.319 And by coordinating I mean all the. 0:12:11.240 --> 0:12:14.480 Different parts of government that are involved in overseeing crypto here, 0:12:14.480 --> 0:12:16.640 so between the White House and Congress, who would actually 0:12:16.640 --> 0:12:19.640 write digital asset legislation, or the White House and other 0:12:19.679 --> 0:12:22.880 agencies that have jurisdiction over this, like the CFTC and 0:12:22.920 --> 0:12:24.880 the SEC. And I would just point you, Caroline to 0:12:24.880 --> 0:12:28.160 the tweet from Kristin Smith, the CEO of the Blockchain Association, 0:12:28.280 --> 0:12:30.240 yesterday she posted on x and she said, look, the 0:12:30.280 --> 0:12:33.400 cryptos are idea quote unquote is a great idea, but 0:12:33.520 --> 0:12:36.160 ultimately they can only actually do things if there is 0:12:36.200 --> 0:12:39.560 a strong Secretary of the Treasury and SEC chair to 0:12:39.640 --> 0:12:41.400 go along with that, and of course, Caroline, we have 0:12:41.480 --> 0:12:43.800 not gotten picks for either of those roles from the 0:12:43.840 --> 0:12:46.199 President elect yet, so a little. 0:12:46.040 --> 0:12:49.360 Of this is signaling, Kaylee. But just remind us on 0:12:49.400 --> 0:12:52.080 the campaign trail, some of the promises to make the 0:12:52.160 --> 0:12:55.600 US the crypto capital of the planet, to make mining 0:12:55.760 --> 0:12:58.120 of a mole focus to the United States, to have 0:12:58.160 --> 0:13:04.160 even well reserve of bitcoin. Is that necessary to have 0:13:04.240 --> 0:13:08.040 congressmate moves or can this be done from an executive order. 0:13:07.920 --> 0:13:09.560 From a White House only led position. 0:13:10.920 --> 0:13:13.240 Some of it can in that the president obviously has 0:13:13.280 --> 0:13:15.920 the power of appointment, so he could put in place 0:13:15.960 --> 0:13:19.760 a more crypto friendly SEC and CFTC chair who would 0:13:19.800 --> 0:13:23.160 be more lenient with the industry perhaps than we have 0:13:23.240 --> 0:13:25.400 seen in the Biden administration. But a lot of this 0:13:25.440 --> 0:13:27.400 will come down to Congress as well. It was actually 0:13:27.440 --> 0:13:30.080 part of not just Donald Trump's campaign platform, but it 0:13:30.120 --> 0:13:32.680 was in the Republican Party platform that was adopted at 0:13:32.720 --> 0:13:35.400 the convention in Milwaukee this summer that they want to 0:13:36.120 --> 0:13:39.800 end what they call democrats Unamerican crackdown on the industry. 0:13:39.840 --> 0:13:41.280 So that would signal that this is kind of more 0:13:41.320 --> 0:13:43.200 of a government wide effort than just what's going to 0:13:43.200 --> 0:13:45.280 be coming out of the White House in Congress. Will 0:13:45.320 --> 0:13:47.640 be really important here is they have the law making 0:13:47.720 --> 0:13:51.480 power in terms of actually delineating jurisdiction between these different 0:13:51.480 --> 0:13:54.840 agencies that kind of have been jockeying for control over it. 0:13:54.880 --> 0:13:55.920 And the chairmanship of. 0:13:55.920 --> 0:13:58.320 The House Financial Services Committee is something we should pay 0:13:58.360 --> 0:14:00.400 attention to. It's going to be decided in the next 0:14:00.640 --> 0:14:02.840 few months is one hundred and nineteenth Congress comes in. 0:14:02.920 --> 0:14:06.000 Chairman currently Patrick mckenry is going to be leaving the 0:14:06.040 --> 0:14:07.880 House and there's kind of a three way battle going 0:14:07.920 --> 0:14:11.560 on between Congress and Bill Barr or excuse me, Andy 0:14:11.600 --> 0:14:14.240 Barr of Kentucky, Bill Hezenga of Michigan, and French Hill 0:14:14.240 --> 0:14:18.520 of Arkansas, who currently leads the subcommittee specifically on digital assets, 0:14:18.559 --> 0:14:20.800 and so when where it's chairing, the Financial Services Committee 0:14:20.840 --> 0:14:22.560 will have a lot of control over the shape of 0:14:22.560 --> 0:14:25.720 the legislation that ultimately could work its way through Congress. 0:14:25.840 --> 0:14:26.600 And that's going to be. 0:14:26.520 --> 0:14:29.720 What a lot of the industry's lobbying time is spent 0:14:29.800 --> 0:14:31.120 specifically on on. 0:14:31.240 --> 0:14:35.200 Industry lobbied going into these elections, and it works. I mean, 0:14:35.240 --> 0:14:38.360 the money that was put to work. Backing crypto friendly 0:14:38.480 --> 0:14:40.960 congress people is important. 0:14:40.560 --> 0:14:42.720 Right, absolutely. 0:14:42.800 --> 0:14:44.880 I mean you look at packs like fair Shape, for example, 0:14:44.880 --> 0:14:47.720 that deployed tens of millions of dollars in some of 0:14:47.720 --> 0:14:51.640 those key congressional races, including for example, a successful ousting 0:14:51.760 --> 0:14:54.120 of the current chair of the Senate Banking Committee, Shared 0:14:54.160 --> 0:14:56.480 Brown of Ohio. He was ousted not just by any 0:14:56.560 --> 0:15:00.240 candidate but a crypto entrepreneur himself, and Bernie Marine the 0:15:00.280 --> 0:15:05.320 incoming Republican Senate designate or Senate elect So that is 0:15:05.320 --> 0:15:07.480 going to be really interesting to watch. As I mentioned 0:15:07.480 --> 0:15:09.960 the House Financial Services Committee. The Senate, of course, is 0:15:09.960 --> 0:15:12.120 going to be where a lot of the uphill climb 0:15:12.120 --> 0:15:14.560 has been historically when it comes to advancing the interests 0:15:14.560 --> 0:15:16.880 of the crypto industry. And Tim Scott will now be 0:15:16.920 --> 0:15:19.200 taking over as the Senate Banking Chair. 0:15:19.280 --> 0:15:20.240 I would just point out. 0:15:20.160 --> 0:15:22.640 That the ranking member could very well be Democratic Senate 0:15:22.640 --> 0:15:25.720 that Elizabeth Warren, who faced a crypto opponent of her own, 0:15:25.720 --> 0:15:28.760 but one ultimately her reelection race, and she may have 0:15:29.640 --> 0:15:31.320 a little bit of a role in at least effort 0:15:31.360 --> 0:15:33.960 in attempt to pull back some of the efforts to 0:15:34.000 --> 0:15:36.800 advance the industry's interest. But the crypto money that was 0:15:36.840 --> 0:15:39.080 active in this election cycle. 0:15:38.800 --> 0:15:40.480 Has no sign that it's going anywhere. 0:15:40.520 --> 0:15:43.240 Now that they've proven that they actually can make a 0:15:43.240 --> 0:15:45.560 difference in outcomes, here will We're watching to see how 0:15:45.600 --> 0:15:48.960 this pack and other interest groups and the others individuals 0:15:49.000 --> 0:15:51.640 who were contributing to it, think Mark and Dreson for example, 0:15:51.720 --> 0:15:53.880 or Brian Armstrong, how active they will be in the 0:15:53.880 --> 0:15:56.400 midterms in twenty twenty six and then ultimately in the 0:15:56.440 --> 0:15:59.200 next presidential cycle in twenty twenty eight, always. 0:15:58.920 --> 0:16:01.160 Pushing us forward. Kaylee me, thank you. 0:16:01.920 --> 0:16:04.800 Now, let's talk about artificial super intelligence. 0:16:05.200 --> 0:16:06.400 Perhaps it's not far off. 0:16:06.600 --> 0:16:09.520 Last months off Bak CEO Masayoshi's son and predicted then 0:16:09.560 --> 0:16:12.320 it would become a reality by twenty thirty five. Well, 0:16:12.360 --> 0:16:14.960 former Google CEO Eric Schmidt, who is out with a 0:16:15.000 --> 0:16:17.760 new book on artificial intelligence, says it might be coming 0:16:17.840 --> 0:16:19.200 even sooner than we think. 0:16:19.240 --> 0:16:19.760 Take a listen. 0:16:20.880 --> 0:16:24.800 It's probable that we can build systems that are the 0:16:24.880 --> 0:16:27.800 technical term is super intelligent, where you have a simple 0:16:27.840 --> 0:16:31.200 system sarry a single system that is at the nineteh 0:16:31.240 --> 0:16:36.600 percentile of physics, math, chemistry, and arts and so forth. 0:16:36.640 --> 0:16:37.720 No human can do that. 0:16:38.160 --> 0:16:40.920 It looks like these systems will be not only available 0:16:40.960 --> 0:16:43.720 in the next five years because we already have examples 0:16:43.760 --> 0:16:46.520 of passing these tests already, but also that they'll be 0:16:46.560 --> 0:16:48.440 broadly available for all society. 0:16:49.680 --> 0:16:51.600 A bit more on AI app because happening today in 0:16:51.680 --> 0:16:54.280 New York the Evident AI Symposium, where some of the 0:16:54.320 --> 0:16:57.480 most senior leaders of the world's banking and artificial intelligence 0:16:57.880 --> 0:17:01.800 areas came together. They're discussing the AI adoption in the 0:17:01.840 --> 0:17:05.040 banking sector based on the latest data from an AI index. 0:17:05.040 --> 0:17:09.280 It's a global standard benchmark for aimaturity in banking. I 0:17:09.320 --> 0:17:11.879 sat down with JP Morgan Chase chief Data and Analytics 0:17:11.920 --> 0:17:16.119 Officer Teresa heitsen Rada and asked if look, the efficiencies 0:17:16.880 --> 0:17:19.600 from AI are the number one return on investment. 0:17:19.600 --> 0:17:20.119 Take listen. 0:17:21.200 --> 0:17:23.480 The magic question is what's what's the return? 0:17:23.920 --> 0:17:24.160 Right? 0:17:24.200 --> 0:17:27.320 And the answer is very, very difficult to quantify, And 0:17:27.640 --> 0:17:30.359 I think at this stage of the game, the return 0:17:30.520 --> 0:17:33.560 is a little bit of efficiency for a lot of 0:17:33.600 --> 0:17:36.159 people every day, but not something that you can actually 0:17:36.160 --> 0:17:38.679 hang a number on. So I think that the next 0:17:38.760 --> 0:17:42.000 generation of where we see this heading is, rather than 0:17:42.080 --> 0:17:44.440 just using it to help you write your email or 0:17:44.680 --> 0:17:47.600 summarize a document, is when we start to plug the 0:17:47.640 --> 0:17:51.480 technology into knowledge bases, when we start to actually look 0:17:51.520 --> 0:17:55.280 at the workflow of a particular person or group and 0:17:55.359 --> 0:17:58.439 linked together the steps in that workflow with the tools 0:17:58.480 --> 0:18:00.520 that they need to be able to do their So 0:18:00.560 --> 0:18:03.960 you basically go from the five minutes of efficiency to 0:18:04.040 --> 0:18:07.160 the five hours of efficiency. That's a road like that's 0:18:07.200 --> 0:18:09.359 going to take some time to actually get there, but 0:18:09.440 --> 0:18:12.760 I think that's where we see it evolving. So there 0:18:12.800 --> 0:18:15.840 are near term benefits, but I think the most compelling 0:18:16.000 --> 0:18:18.840 is just putting the technology in people's hands and letting 0:18:18.920 --> 0:18:21.879 them start to experiment and understand how it actually works 0:18:21.880 --> 0:18:22.920 and how it can be used. 0:18:24.000 --> 0:18:27.160 JP Morgan Chase Chief Data and Analytics Officer Teresa heisen Weather. 0:18:27.240 --> 0:18:30.080 There I mean, while coming up, it's official the DOJ 0:18:30.440 --> 0:18:33.680 does want Google to divest its Chrome web browser. 0:18:34.040 --> 0:18:34.880 All details next. 0:18:34.880 --> 0:18:48.520 This is bring big technology. 0:18:50.520 --> 0:18:53.399 The Justice Department and a group of states do indeed 0:18:53.440 --> 0:18:55.960 suggest that Google may have to divest its popular Chrome 0:18:56.000 --> 0:18:59.639 web browser and imposed limits on its Android operating system 0:18:59.680 --> 0:19:02.840 in order to address anti trust concerns, all confirming earlier 0:19:02.880 --> 0:19:04.320 reports by Bloomberg. 0:19:04.480 --> 0:19:06.320 For Now, Bloombergsley and Nyland. 0:19:06.080 --> 0:19:08.680 Joins US and it was your reporting that ultimately has 0:19:08.720 --> 0:19:13.640 been confirmed. Just tell us through how realistic still this 0:19:13.760 --> 0:19:14.679 divestment would be. 0:19:16.800 --> 0:19:20.560 We'll see probably in early spring. The Justice Department has 0:19:20.560 --> 0:19:22.840 said that they want Google to be forced to sell 0:19:22.840 --> 0:19:23.399 off Chrome. 0:19:24.160 --> 0:19:25.439 It's not clear who would buy it. 0:19:25.560 --> 0:19:29.240 You know, the top two other browser makers, Microsoft and Apple, 0:19:29.320 --> 0:19:32.240 who have the cash, the Justice Apartment probably wouldn't want 0:19:32.240 --> 0:19:35.399 to let them, so the next you know, most obvious 0:19:35.440 --> 0:19:38.600 candidates are probably people like open ai or Perplexity or 0:19:38.640 --> 0:19:42.359 some of the other AI startups that would really love 0:19:42.440 --> 0:19:44.919 to have this kind of an avenue to customers for 0:19:45.040 --> 0:19:51.400 their AI search goals. Other things that the Justice Department 0:19:51.440 --> 0:19:54.560 put in there is that they want Google to have 0:19:54.600 --> 0:19:57.000 to license a lot of its data. That's probably a 0:19:57.000 --> 0:20:00.119 more realistic thing that would have to happen, and and 0:20:00.400 --> 0:20:03.120 it would definitely give a boost to other search engines 0:20:03.320 --> 0:20:05.359 and possibly AI startups who would now. 0:20:05.200 --> 0:20:06.720