WEBVTT - AMD Earnings, UK AI Summit, The Fed & Valuations 0:00:01.800 --> 0:00:02.520 From Marhart. 0:00:02.640 --> 0:00:07.080 We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.440 --> 0:00:11.480 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.280 --> 0:00:27.680 I'm Caroline Heyde of Bloomberg's world headquarters in New York, 0:00:29.040 --> 0:00:30.720 and I'm an adler in San Francisco. 0:00:30.840 --> 0:00:33.000 This is Bloomberg Technology coming up. 0:00:33.080 --> 0:00:36.199 Amd rallies on AI optimism, as the company says it's 0:00:36.280 --> 0:00:39.680 artificial intelligence chip will generate billions next year. 0:00:40.440 --> 0:00:43.239 Plus, the UK Summit on AI Safety is underway in 0:00:43.280 --> 0:00:46.800 London with attendees including Kamala Harris and Elon Musk. Will 0:00:46.800 --> 0:00:50.000 bring you the big takeaways and interviews from the event, and. 0:00:49.880 --> 0:00:52.159 We'll push you ahead to the Federal Reserve rate decision 0:00:52.200 --> 0:00:54.440 due out later this afternoon and look at the central 0:00:54.480 --> 0:00:57.800 banks impact on you guess, the AI startups. But first 0:00:57.840 --> 0:01:00.720 let's check in on these markets, because well, we do 0:01:00.840 --> 0:01:03.480 have some movement ahead of the all important decision, but 0:01:03.520 --> 0:01:05.320 many are thinking, yes, rate's going to stay at that 0:01:05.400 --> 0:01:07.880 twenty two year high for yet another month. We're seeing 0:01:07.880 --> 0:01:10.160 the NASTAC up some seven tens of percent. Maybe it's 0:01:10.160 --> 0:01:13.360 actually some of the economic data, Ed that's weighing on. Well, 0:01:13.360 --> 0:01:15.200 the bad news being good news once more, if we're 0:01:15.200 --> 0:01:17.800 seeing some of those factory orders coming in worse than expected, 0:01:17.840 --> 0:01:20.600 if we're seeing jobless claims actually just ticking up more, indeed, 0:01:20.680 --> 0:01:24.360 job openings starting to open up a little bit, maybe 0:01:24.360 --> 0:01:25.920 this is something that we're trying to get, this mixed 0:01:25.959 --> 0:01:28.080 picture of where the economy is really going. Whatever the case, 0:01:28.080 --> 0:01:30.399 we're seeing some buoyancy in tech. We're seeing some boyancy 0:01:30.440 --> 0:01:32.959 in the bomb market, yields falling that of course as 0:01:33.000 --> 0:01:34.959 we get a hint that actually will see a slowing 0:01:35.000 --> 0:01:37.400 of pace of growth in the amount of bonds that 0:01:37.440 --> 0:01:39.800 will be issued on the long dated end by the 0:01:39.880 --> 0:01:42.720 US Treasury, so lack of supply means yiels fall down. 0:01:42.760 --> 0:01:44.760 We're seeing the VIX indexs just lower a little bit. 0:01:44.760 --> 0:01:48.560 There's some calming over, of course, still concerns over geopolitics. 0:01:48.600 --> 0:01:50.440 Move on to what's happening in the world the crypto though, 0:01:50.480 --> 0:01:53.280 because on the day, even as VIX pulls back, options 0:01:53.280 --> 0:01:55.040 protection maybe lower a bit. Even though we heard the 0:01:55.080 --> 0:01:57.280 Apple maybe ticking up a little bit ahead of its earnings, 0:01:57.320 --> 0:01:59.200 we're looking at crypto just on the downside by about 0:01:59.200 --> 0:02:01.360 a percentage point. This as we see the dollar treading 0:02:01.360 --> 0:02:02.760 water at thirty four thousand the end. 0:02:02.800 --> 0:02:05.520 What are you watching on the micraft AMD? 0:02:05.760 --> 0:02:07.640 This is the big technology story of the day, at 0:02:07.720 --> 0:02:10.600 least from a market mover perspective. We're up always eight percent, 0:02:10.680 --> 0:02:13.639 on track for the biggest jump since May. The story 0:02:13.919 --> 0:02:18.160 the MII three hundred. AMD's AI accelerator on track to 0:02:18.240 --> 0:02:21.160 start production and shipments in the final three months of 0:02:21.200 --> 0:02:24.640 the year. Four hundred million dollars of revenue in the 0:02:24.680 --> 0:02:28.200 current period coming from its AI accelerator two billion dollars 0:02:28.200 --> 0:02:30.840 of revenue the company season four year twenty four, and 0:02:30.919 --> 0:02:33.640 AMD is saying this will be the fastest of its 0:02:33.680 --> 0:02:36.360 products to ever hit one billion dollars of revenue. This 0:02:36.520 --> 0:02:39.760 is the direct competitor to Nvidia's h one hundred. We're 0:02:39.800 --> 0:02:43.200 talking about a GPU that ships is an assemble component 0:02:43.440 --> 0:02:47.640 for hyperscalers, data centers, and large AI startups to train 0:02:48.120 --> 0:02:52.520 LM's large language models and foundation models. And that's despite 0:02:52.639 --> 0:02:55.360 giving its current period forecast five point eight billion to 0:02:55.400 --> 0:02:58.919 six point four billion dollars, the midpoint of that range 0:02:58.960 --> 0:03:01.960 was below Street Can census. The concern for them separately 0:03:02.320 --> 0:03:04.800 is a slow down in gaming CHIT sales, but AI 0:03:04.919 --> 0:03:07.280 to the rescue and It's funny because the stock fell 0:03:07.320 --> 0:03:10.320 in after hours during the earning school, it was week 0:03:10.400 --> 0:03:12.720 during pre market trading, and it's gone off like a 0:03:12.800 --> 0:03:15.160 rocket during the main session this Wednesday in Certaly. 0:03:15.200 --> 0:03:18.280 Has let's stelve into someone who's perhaps benefiting from the rocket. 0:03:18.560 --> 0:03:21.280 Evana de Leskas, with our CIO of Spear invested AMD 0:03:21.360 --> 0:03:25.239 a key holding. I'm interested in how you balance out 0:03:25.360 --> 0:03:28.200 that narrative that there is weakness, particularly in Europe when 0:03:28.200 --> 0:03:30.799 you're coming to desire to get into industrial chips. There 0:03:30.840 --> 0:03:34.120 is worry about China, but AI is still the bright spot. 0:03:35.200 --> 0:03:37.800 That's right, Caroline. So we see AI as a pretty 0:03:37.800 --> 0:03:40.880 big opportunity. And it's not just on the GPU side 0:03:40.880 --> 0:03:45.120 for AMD, it's across the board data center spending. So 0:03:45.480 --> 0:03:48.840 we believe they're going to benefit from this YouTube the Milano, 0:03:49.120 --> 0:03:52.680 but also from their CPUs as well, like the Berghama 0:03:52.680 --> 0:03:55.160 and Gene And that was really the big surprise this quarter. 0:03:55.560 --> 0:03:59.920 Investors had expected that AMD's guidance was very aggressive for 0:04:00.080 --> 0:04:02.640 the second half of this year, but they were able 0:04:02.680 --> 0:04:06.120 to deliver and guide to still fifty percent growth for 0:04:06.280 --> 0:04:08.040 the data center segment overall. 0:04:08.200 --> 0:04:10.240 Now thinking more about a two billion run right by 0:04:10.240 --> 0:04:12.640 the end of it. I'm interested as to whether you 0:04:12.720 --> 0:04:16.320 think these two players and Video and AMD are going 0:04:16.360 --> 0:04:18.919 to be the ones that take all. Whether the market 0:04:19.000 --> 0:04:21.000 is going to be so large that vast the time 0:04:21.080 --> 0:04:22.839 of one hundred and fifty billion or so that we 0:04:22.880 --> 0:04:25.120 can still see entrance taking market share. 0:04:25.720 --> 0:04:29.239 So we do see new entrants coming in. However, AMD 0:04:29.320 --> 0:04:31.720 and in Nvidia have the early start, so they're going 0:04:31.760 --> 0:04:34.280 to be able to capture significant part of the market share. 0:04:34.560 --> 0:04:36.960 We're going to see some of the cloud vendors develop 0:04:37.000 --> 0:04:39.839 their own solutions as well, so we see them benefiting 0:04:40.080 --> 0:04:44.400 from this trend. Amazon has some new products that they're introducing, 0:04:44.720 --> 0:04:48.040 but in Nvidia NAMD will be able to capture a 0:04:48.120 --> 0:04:50.680 big part of market share as their first movers in 0:04:50.680 --> 0:04:51.600 this market. 0:04:52.080 --> 0:04:54.680 If our AMD shares are up eight percent, as I said, 0:04:54.680 --> 0:04:56.680 on track for the biggest jump since May, and a 0:04:56.680 --> 0:05:00.160 lot of the cell side talking about the Mi three 0:05:00.240 --> 0:05:00.920 hundred being the. 0:05:01.040 --> 0:05:02.240 Catalyst for the stock. 0:05:02.320 --> 0:05:07.479 Right, your ETF includes both AMD and Nvidia. The Mi 0:05:07.720 --> 0:05:11.360 three hundred is a direct competitor to the H one hundred, 0:05:11.400 --> 0:05:13.680 which is already out there in the real world in volume. 0:05:14.080 --> 0:05:15.320 So how do you play this? 0:05:15.600 --> 0:05:19.159 How do you consider the composition of the ETF going forward. 0:05:19.800 --> 0:05:23.000 So we see data center as a trillion dollar market 0:05:23.040 --> 0:05:25.680 that is going to need upgrading, right, so we see 0:05:25.720 --> 0:05:30.080 opportunities for multiple players. The shares of Nvidia have styled 0:05:30.120 --> 0:05:34.400 out recently due to China concerns and also people just 0:05:34.560 --> 0:05:38.279 being cautious on the AI being hype versus reality. But 0:05:38.400 --> 0:05:41.760 we do believe that we are going to see significant investments, 0:05:41.800 --> 0:05:43.800 and we do think that these companies are going to 0:05:43.800 --> 0:05:47.320 be able to compound at over fifty percent GIGER over 0:05:47.360 --> 0:05:48.400 the next few years. 0:05:49.960 --> 0:05:53.000 The story of Nvidia over the course of twenty twenty 0:05:53.000 --> 0:05:55.479 three is a stock up almost one hundred and ninety percent, 0:05:56.000 --> 0:06:00.839 So you expect AMD's stock to track like Nvidia story 0:06:00.880 --> 0:06:02.799 did with the h one hundred if they can prove 0:06:02.920 --> 0:06:05.560 that they can scale up mi I three hundred in 0:06:05.600 --> 0:06:07.480 the same way that Nvidia did. 0:06:08.240 --> 0:06:11.320 Well in Nvidia really got oversold at some point in 0:06:11.360 --> 0:06:13.400 the cycle, so a lot of what you're seeing here 0:06:13.440 --> 0:06:16.600 in terms of the move is from really depressed levels. 0:06:16.920 --> 0:06:19.799 So we do see similar upsite from here for both 0:06:19.920 --> 0:06:21.760 in Nvidia in and AMD. 0:06:23.000 --> 0:06:25.240 I mean, what's really interesting is, of course you set 0:06:25.320 --> 0:06:28.360 up and launched sprx in large part to find the 0:06:28.440 --> 0:06:32.200 undervalued areas of particularly B to B industrial use of tech. 0:06:33.279 --> 0:06:36.120 Talk to us from a macro perspective geographically, where you 0:06:36.200 --> 0:06:38.919 are worried about because there was serious signs of some 0:06:39.040 --> 0:06:42.200 European slowdown is not going to be long lasting. Do 0:06:42.240 --> 0:06:44.880 we think that that can be offset by the satiable 0:06:44.880 --> 0:06:46.440 demand for artificial intelligence? 0:06:46.880 --> 0:06:49.920 Yeah, well, Caroline. Interestingly, technology is going to be one 0:06:50.000 --> 0:06:53.840 of the least sensitive to the economy sectors. So while 0:06:53.839 --> 0:06:56.039 you're going to see some movement like, for example, in 0:06:56.080 --> 0:06:59.520 consumer technology, we see some downside in autos. We're seeing 0:06:59.520 --> 0:07:02.279 a lot of negative data points on the EV side. 0:07:02.640 --> 0:07:06.760 We saw similar impact on semiconductor companies that sell to autos. 0:07:06.839 --> 0:07:09.520 So we believe that consumer is going to be where 0:07:09.600 --> 0:07:11.960 the downside is going to be in the near term 0:07:12.040 --> 0:07:15.720 here driven by the economy and really high interest rates. 0:07:16.360 --> 0:07:18.360 So those areas of the economy are going to be 0:07:18.400 --> 0:07:22.120 more sensitive and that's what we are avoiding. However, enterprise 0:07:22.320 --> 0:07:25.960 just went through a down cycle in spending. Companies already 0:07:25.960 --> 0:07:28.840 cut their budgets to a pretty low level, so we 0:07:28.960 --> 0:07:32.960 see those comps being pretty favorable position going into twenty 0:07:33.000 --> 0:07:37.560 twenty four. So areas like cloud data infrastructure, cybersecurity. We 0:07:37.600 --> 0:07:40.320 think those are going to be good areas to be 0:07:40.360 --> 0:07:41.920 into it next year. 0:07:42.920 --> 0:07:45.040 Ivan, I always wanted to ask you how much you 0:07:45.160 --> 0:07:47.760 nerd out, how deep you go on the details on 0:07:47.840 --> 0:07:49.920 a product like this. Right, we're going to look at 0:07:49.960 --> 0:07:52.840 some pictures of the Mi three hundred. You know, a 0:07:52.840 --> 0:07:55.200 lot of the work in the market this morning is 0:07:55.240 --> 0:07:57.920 based on what Lisa Sue had to say. Do you 0:07:58.040 --> 0:08:00.960 go through the specs of these semikinduct and go with 0:08:01.000 --> 0:08:03.760 your own conviction call based on deep research or do 0:08:03.840 --> 0:08:06.600 you just go based on the commentary of executives. 0:08:07.600 --> 0:08:11.160 So we do very fundamental deep research, and what where 0:08:11.200 --> 0:08:15.120 we differentiate ourselves is that we read data across the 0:08:15.240 --> 0:08:17.960 value chain. So we're going to be talking to companies 0:08:18.040 --> 0:08:20.680 like Microsoft that are going to be partnering with companies 0:08:20.720 --> 0:08:24.000 like Nvidia. We're talking to smaller cap companies that sell 0:08:24.280 --> 0:08:28.440 liquid cooling to the data center segment, that are selling 0:08:28.520 --> 0:08:31.800 casings to the data center segment. So we gather these 0:08:31.880 --> 0:08:35.520 data points from multiple sources and that gives us confidence 0:08:35.559 --> 0:08:38.600 in where the data center spending cycle is going. So 0:08:38.640 --> 0:08:42.440 it really is not about just following what management is saying. 0:08:42.800 --> 0:08:45.680 Is really trying to understand how they're positioned in the 0:08:45.720 --> 0:08:48.760 ecosystem by getting data points from the supply chain. 0:08:49.080 --> 0:08:52.199 Even doing that sort of deep research touts shore cet development. 0:08:52.240 --> 0:08:56.760 Millennium Global companies with global perspectives give us the global 0:08:56.800 --> 0:08:58.840 take on how much MPD is going to be exposed 0:08:58.920 --> 0:09:02.400 to China and the continues when it comes to top 0:09:02.760 --> 0:09:04.240 in technology, Well. 0:09:04.200 --> 0:09:06.160 China is going to be a big risk to both 0:09:06.280 --> 0:09:09.520 AMD and Nvidia, and we're going to see how the geopolitics. 0:09:09.520 --> 0:09:12.760 We don't necessarily make geopolitical calls, so we're going to 0:09:12.800 --> 0:09:15.440 see how that evolves over the next few years. But 0:09:15.480 --> 0:09:18.559 it's a pretty large market and both the AM and 0:09:18.760 --> 0:09:21.120 VDIA are very well positioned there because they're really the 0:09:21.120 --> 0:09:25.360 only game in town. And the consumer side in China 0:09:25.480 --> 0:09:28.400 of enterprise companies is pretty large and there are pretty 0:09:28.400 --> 0:09:31.920 big consumers of this product. So if they're shut down 0:09:32.000 --> 0:09:35.720 from this market, we do see the upside going maybe 0:09:35.760 --> 0:09:39.839 five years out being really cupped and we see earning 0:09:39.920 --> 0:09:42.480 stalling out then. But for the next three years, we 0:09:42.600 --> 0:09:49.640 do see strong demand just from US domestic hyperscalers and enterprises. 0:09:49.679 --> 0:09:53.960 We've not really seen enterprises participate in this cycle yet, 0:09:54.080 --> 0:09:57.120 so we do see pretty significant near terms upset in 0:09:57.160 --> 0:09:58.280 the next two to three years. 0:09:58.880 --> 0:10:01.320 Vana de la Lasco Beer invest great to catch up 0:10:01.360 --> 0:10:03.559 with you, and thank you for that technical expertise as well. 0:10:03.559 --> 0:10:10.880 We appreciate it. 0:10:12.240 --> 0:10:15.760 The UK Summit on AI Safety is underway, and earlier 0:10:15.920 --> 0:10:18.440 on Bloomberg caught up with the CEO of Google's Deep 0:10:18.480 --> 0:10:21.400 Mind about the future benefits of artificial intelligence to stick 0:10:21.440 --> 0:10:21.760 a listen. 0:10:22.600 --> 0:10:24.240 I think the message that we bring is one of 0:10:24.240 --> 0:10:27.200 cautious optimism. Obviously, we're working on this technology because we 0:10:27.320 --> 0:10:29.440 think it'll be one of the most beneficial technologies to 0:10:29.520 --> 0:10:33.679 society ever. But it does come with attending risks, as 0:10:33.720 --> 0:10:36.360 all transformative technologies do, and I think we need to 0:10:36.400 --> 0:10:39.120 take those seriously, ranging from the near term risk to 0:10:39.640 --> 0:10:43.120 the longer term technological risks, and I think we need 0:10:43.160 --> 0:10:46.080 to start an international dialogue about that now. So it's 0:10:46.080 --> 0:10:47.840 fantastic to see this happening in the summit, and. 0:10:47.840 --> 0:10:51.040 There is divergence from policymakers, but there's also divergence and 0:10:51.120 --> 0:10:53.920 quite passionate splits within your own community. 0:10:53.960 --> 0:10:54.920 You're very aware of this. 0:10:55.080 --> 0:10:58.520 The head of AI at Meta Anderkut saying name checking 0:10:58.559 --> 0:11:02.359 in saying you're them hungering, there's maybe regulatory capture. 0:11:02.040 --> 0:11:02.880 Going on here. 0:11:03.640 --> 0:11:07.360 Your response to that critique, because ya, look isn't alone. 0:11:07.360 --> 0:11:10.679 There are others who say, quote unquote, that is preposterous 0:11:10.720 --> 0:11:13.640 to talk about some of these existential risks fearmongering. Is 0:11:13.679 --> 0:11:15.640 that what you're doing, Dennis, though, of course not. 0:11:15.760 --> 0:11:18.360 And there's equal luminaries on the other side of the 0:11:18.400 --> 0:11:22.440 camp as well, including some of Yan's fellow Cheering Award winners, 0:11:23.040 --> 0:11:24.400 And we've all known each other for a long time 0:11:24.440 --> 0:11:28.439 actually for the academic community, and as far as sort 0:11:28.440 --> 0:11:30.920 of regulatory capture and other things, I think that's pretty preposterous. 0:11:30.920 --> 0:11:33.120 We've been myself and Shane Leger, one of my other 0:11:33.160 --> 0:11:35.280 co founders of d Mine, have been talking about AI 0:11:35.320 --> 0:11:37.600 safety since we were post docs and academics in two 0:11:37.600 --> 0:11:41.199 thousand and nine, so before we'd even started our companies. 0:11:41.640 --> 0:11:45.160 So I think it's comes from a genuine, actually uncertainty 0:11:45.480 --> 0:11:49.079 around where the technology can go. It's more enormously powerful, 0:11:49.160 --> 0:11:50.760 we know, and that's why we all work our whole 0:11:50.800 --> 0:11:52.880 lives on it, all of us. We think it can 0:11:52.920 --> 0:11:56.480 being incredible benefits to science and medicine and climate and 0:11:56.600 --> 0:11:59.920 environment and can actually help us and help society face 0:12:00.040 --> 0:12:03.240 of our greatest challenges and solve some of those challenges. 0:12:03.600 --> 0:12:07.120 But you know, in terms of where the technology is 0:12:07.120 --> 0:12:09.040 going to go and the capabilities that will have, there's 0:12:09.040 --> 0:12:11.280 a lot of uncertainty around that, and I think it's good. 0:12:11.280 --> 0:12:15.120 There's disagreement and even amongst the academic fraternity, and that 0:12:15.280 --> 0:12:17.320 just shows you that's why we have to proceed with 0:12:17.400 --> 0:12:19.480 cautious optimism. You know, we want to make sure we 0:12:19.520 --> 0:12:22.080 get the benefits of the innovation and the promise that 0:12:22.120 --> 0:12:26.400 the technology clearly holds. But we've got to be doing 0:12:26.440 --> 0:12:29.280 a responsible way, I would say, using a scientific method, 0:12:29.520 --> 0:12:33.000 trying to have as much foresight on the technology as possible, 0:12:33.080 --> 0:12:36.480 so we predict ahead of time what the unintended consequences 0:12:36.559 --> 0:12:36.800 might be. 0:12:37.120 --> 0:12:39.320 I guess for some it's the emphasis, and the Deputy 0:12:39.320 --> 0:12:42.480 Prime Minister himself, speaking to us earlier, said this is 0:12:42.559 --> 0:12:45.200 very much the summit focused on frontier technology, so the 0:12:45.240 --> 0:12:47.280 next models, the deep mind and others may be going 0:12:47.280 --> 0:12:49.800 out with the next twelve months or so. Others would say, look, 0:12:49.880 --> 0:12:52.040 we need to focus on the more prosaic risks of 0:12:52.080 --> 0:12:54.280 the here and now, the misinformation. 0:12:53.840 --> 0:12:54.679 Data security. 0:12:55.840 --> 0:12:59.280 Those issues are not being given enough weight with the 0:12:59.320 --> 0:13:00.600 critics would say. 0:13:00.400 --> 0:13:02.240 Yeah, I don't agree with that. I mean I think 0:13:02.280 --> 0:13:05.960 that that Actually, even in the summit, there's many sessions 0:13:06.000 --> 0:13:08.000 on the near term Rizz and all of us in 0:13:08.040 --> 0:13:11.400 the frontier labs are also thinking a lot about near 0:13:11.520 --> 0:13:12.960 term harms and how to mitigate those. 0:13:14.840 --> 0:13:17.559 Demss Hassi bis CEO of Google Deep Mind there. Bloomberg's 0:13:17.559 --> 0:13:20.440 Tom McKenzie joins us now from the ground at the 0:13:20.440 --> 0:13:23.720 AI summit, of course, conducted that conversation. It's kind of 0:13:23.760 --> 0:13:27.440 like a who's who in the world of AI. Elon 0:13:27.559 --> 0:13:32.000 Musk is there, right, Tom. But from a political perspective, 0:13:32.600 --> 0:13:35.880 the world's leaders have not turned up. So how much 0:13:35.960 --> 0:13:39.000 is Richie Schunach leaning in on Elon Musk of all 0:13:39.040 --> 0:13:40.560 people being there? 0:13:41.000 --> 0:13:43.280 Well, Elon Musk, certainly. Look a lot of your friends 0:13:43.440 --> 0:13:46.120 and Caroline are on the ground today. Sam Moltman's here, 0:13:46.160 --> 0:13:48.440 of course, have opened AI. Elon Musk is here, Eric 0:13:48.440 --> 0:13:51.360 Schmidt is here. You have deep minds, demsocivists, of course, 0:13:51.440 --> 0:13:53.320 so they already have bought the power lists in terms 0:13:53.320 --> 0:13:56.640 of those driving the innovation within technology. But you're right, Look, 0:13:56.679 --> 0:14:00.000 there's on the edges maybe a little bit of disappointment 0:14:00.200 --> 0:14:02.160 that you don't have the French president here, that you 0:14:02.160 --> 0:14:05.560 don't have the German chancellor, but I will suppress this. 0:14:05.679 --> 0:14:08.120 The UK government, they say, look, we're actually pretty relaxed. 0:14:08.120 --> 0:14:10.760 You've got vonder lyon the European Commissioned President, You've got 0:14:10.800 --> 0:14:12.680 the Vice President of the United States kind of house 0:14:13.160 --> 0:14:16.280 is here, You've got the Japanese representation, you've got Chinese representation. 0:14:16.360 --> 0:14:19.000 So they would say, look, the leaders are here, and 0:14:19.240 --> 0:14:22.560 crucially those executives are here in al must certainly helps 0:14:22.680 --> 0:14:25.000 the UK and it's kind of pr efforts, certainly, And 0:14:25.000 --> 0:14:26.720 what they have mons achieve is sign off on this 0:14:26.800 --> 0:14:29.600 communic A twenty eight different nations. And that's no mean 0:14:29.640 --> 0:14:32.000 feet right, getting China on board with the US, with 0:14:32.040 --> 0:14:34.200 the UK on signing off on the need to protect 0:14:34.600 --> 0:14:37.040 against what they describe as these catastrophic risks. 0:14:37.640 --> 0:14:40.720 Yeah, and there was much made of China being part 0:14:40.760 --> 0:14:43.720 of this conversation, but it needs to be a global agreement, 0:14:43.760 --> 0:14:46.400 a global narrative. If we're going to have guardrails here, Tom, 0:14:46.680 --> 0:14:48.440 what do you expect to actually be coming out in 0:14:48.560 --> 0:14:52.960 terms of hard regulatory policy? Already We've been hearing from 0:14:52.960 --> 0:14:56.120 the US already enacting in executive order for example. 0:14:57.240 --> 0:14:59.520 Yeah, so you've you've got the Communica, which is a 0:14:59.600 --> 0:15:03.160 consent census around protecting against some of these risks. 0:15:03.200 --> 0:15:04.920 But that's all it is. It's a consensus. 0:15:04.920 --> 0:15:08.600 There's no regulatory concrete action that comes on the back 0:15:08.640 --> 0:15:10.800 of this. They'll be hoping that that follows. In six 0:15:10.840 --> 0:15:13.080 months time, South Korea will host their summit, then six 0:15:13.080 --> 0:15:15.760 months after that it'll be France. But look, you're absolutely right. 0:15:15.760 --> 0:15:17.800 There is a divergent picture when it comes to the 0:15:17.840 --> 0:15:21.320 regulatory response, whether that is the euai AT that they 0:15:21.320 --> 0:15:23.480 hope to put into lawn next year, or the executive 0:15:23.480 --> 0:15:26.800 action of the US or China's own regulatory regime. And 0:15:26.840 --> 0:15:29.560 it's interesting because you speak to certain people like Demis, 0:15:29.800 --> 0:15:33.720 but also Inflection CEO as well, the Inflection AIICO saying, look, 0:15:33.920 --> 0:15:36.200 we need to have kind of a global oversight body 0:15:36.240 --> 0:15:37.800 and others push back on that. We spoke to the 0:15:37.800 --> 0:15:40.440 Senior Vice President and IBM said, that's just not going 0:15:40.520 --> 0:15:41.960 to happen. You're not going to be able to get 0:15:41.960 --> 0:15:45.040 that global consensus. You need to work through the agencies 0:15:45.080 --> 0:15:48.040 that already exist. So look, there are divisions in terms 0:15:48.080 --> 0:15:51.440 of that regulatory framework. How it works the implementation, but 0:15:51.440 --> 0:15:54.680 there are also divisions amongst executives themselves, take executives in 0:15:54.760 --> 0:15:57.440 terms of how you define risks and how you define 0:15:57.800 --> 0:15:59.960 the regulations that are needed to contain some of them. 0:16:00.200 --> 0:16:00.400 RIK. 0:16:00.640 --> 0:16:02.680 So the gap is huge at a time of course, 0:16:02.680 --> 0:16:04.680 when we know the innovation is coming through at a 0:16:04.760 --> 0:16:06.600 very rapid pace, whole load. 0:16:06.480 --> 0:16:08.080 Of so much true to be done. There's a couple 0:16:08.040 --> 0:16:10.280 of more days. Of course, it's today, it is tomorrow, 0:16:10.320 --> 0:16:13.360 and of course it's all important. X discussion going on 0:16:13.720 --> 0:16:16.480 between Enol Musk and Mishi Sunac after the event. Tom 0:16:16.520 --> 0:16:18.680 McKenzie on the ground for us over there in buckingham Shaw. 0:16:18.720 --> 0:16:21.520 We thank him very much for it. Meanwhile, coming up funding, 0:16:21.600 --> 0:16:25.760 an AI scientist, former Google CEO actually is in the 0:16:25.840 --> 0:16:27.520 UK at the moment. He's also been lending a hand 0:16:27.560 --> 0:16:30.280 to a nonprofit with ambitious plans to build an aisystem 0:16:30.320 --> 0:16:33.360 capable of scientific research. We have more on that next. 0:16:33.520 --> 0:16:34.080 Ed, what's you got? 0:16:34.840 --> 0:16:37.000 Yeah, just a real quick look at shares of Wayfair, 0:16:37.040 --> 0:16:38.920 another one that had been lower and then suddenly book 0:16:39.160 --> 0:16:42.120 Off it goes higher, up five percent, and lists really 0:16:42.160 --> 0:16:44.840 impressed with the profitability in the e commerce context. In 0:16:44.880 --> 0:16:48.640 the fintech context, with this stock up five point four percent. 0:16:48.720 --> 0:17:08.239 This has been bog technology. Here's talking tech first Up. 0:17:08.280 --> 0:17:11.160 We Work shares slumping by as much as fifty percent 0:17:11.240 --> 0:17:14.160 today after a Wall Street Journal report about its plans 0:17:14.400 --> 0:17:17.240 to file for bankruptcy. A spokesperson for the company said 0:17:17.440 --> 0:17:22.200 it would quote not comment on speculation and interest. Internet 0:17:22.200 --> 0:17:25.479 companies in Southeast Asia, like seeing Grabber, facing their slowest 0:17:25.480 --> 0:17:29.399 growth in years. Researchers say online spending is expected to 0:17:29.480 --> 0:17:32.119 rise by eleven percent this year, but down from twenty 0:17:32.119 --> 0:17:34.760 percent a year earlier, in its lowest rate going back 0:17:34.800 --> 0:17:37.320 to twenty seventeen. This comes as consumers in the region 0:17:37.600 --> 0:17:40.639 pull back on their spending. Plus, new emails shown in 0:17:40.680 --> 0:17:44.400 the DOJ lawsuit against Google are shedding new light about 0:17:44.400 --> 0:17:48.200 the blurry line between search and advertising. In twenty nineteen, 0:17:48.600 --> 0:17:51.800 the former head of Google Search raised concerns that his 0:17:52.000 --> 0:17:55.520 team was quote getting too involved with ads. After Google 0:17:55.720 --> 0:18:00.600 internally declared a code yellow amid revenue concern, speculators world 0:18:00.800 --> 0:18:03.560 that its search team has sometimes been pulled into the 0:18:03.600 --> 0:18:06.879 advertising side of the business. Google has pushed back on 0:18:06.960 --> 0:18:08.200 that very IDEA. 0:18:07.960 --> 0:18:10.840 Caroline Now, speaking of Google, the former CEO of that 0:18:10.960 --> 0:18:13.600 business Searchmith, but he's mentioned further into the non profit 0:18:13.640 --> 0:18:16.959 space by lending his funds his expertise to an AIPAD 0:18:17.000 --> 0:18:20.760 research initiative called Future House, who mergs Jacki Davilas joins 0:18:20.840 --> 0:18:23.560 us in Washington with a great story all about Basically, 0:18:24.080 --> 0:18:28.040 they're assuming that the scientific process in and of itself 0:18:28.480 --> 0:18:31.080 needs to be accelerated by AI, not just the actual 0:18:31.119 --> 0:18:34.000 finding of scientific breakthroughs, that's very Caroline. 0:18:34.280 --> 0:18:37.199 What Future House really wants to do here is not 0:18:37.760 --> 0:18:43.400 just advanced breakthroughs like the alpha fold protein folding breakthrough 0:18:43.440 --> 0:18:45.320 that we saw in the last couple of years that 0:18:45.400 --> 0:18:49.760 really cracked open AI's potential in science. What Future House 0:18:49.760 --> 0:18:53.480 wants to do is actually advanced the process itself. Now, 0:18:53.840 --> 0:18:55.400 a lot of us kind of have to go back 0:18:55.440 --> 0:18:58.439 to that high school, you know, laboratory where we were 0:18:58.480 --> 0:19:01.640 learning about how to create a hyphe doing the research, 0:19:01.680 --> 0:19:04.280 and then ultimately testing that. But there's a lot of 0:19:04.359 --> 0:19:07.640 bottlenecks here that Future House says they can solve, starting 0:19:07.680 --> 0:19:11.439 with the ability to make new hypotheses at a greater 0:19:11.560 --> 0:19:15.000 scale and much faster, perhaps more accurate than humans can. 0:19:15.280 --> 0:19:16.840 And the way they want to do that is with 0:19:16.920 --> 0:19:19.479 this AI scientist, So they plan to kind of build 0:19:19.760 --> 0:19:23.440 their own AI system that can ingest thousands and thousands 0:19:23.480 --> 0:19:26.160 of papers at a much bigger scale than a human 0:19:26.200 --> 0:19:30.479 scientist can, and eventually start to semi autonomously come up 0:19:30.480 --> 0:19:31.800 with hypotheses of its own. 0:19:31.960 --> 0:19:34.040 What's interesting about this story is there are loads of 0:19:34.080 --> 0:19:37.320 startups and big companies working on applying AI and the 0:19:37.400 --> 0:19:41.000 sciences by technology farmer drug discovery. This is a non 0:19:41.119 --> 0:19:44.639 profit and it's focused in academia. Tell us who the 0:19:44.680 --> 0:19:46.280 people are behind Future House. 0:19:46.160 --> 0:19:49.560 Jackie that was by design ed Now, of course, Eric 0:19:49.600 --> 0:19:53.320 Schmidt is by far the largest backer here. The organization 0:19:53.440 --> 0:19:55.360 plans to have is backing for at least the first 0:19:55.440 --> 0:19:59.440 five years. It expects to spend about twenty million dollars 0:19:59.480 --> 0:20:02.000 in the next her up until next and a lot 0:20:02.000 --> 0:20:04.760 of that funding is going to go to talent and 0:20:04.800 --> 0:20:08.159 building what's called a wet laboratory, much like what we 0:20:08.200 --> 0:20:10.720 would see in an academic institution or even some of 0:20:10.760 --> 0:20:14.320 these industry led research labs. But the reason it's a 0:20:14.359 --> 0:20:16.880 nonprofit is because it doesn't want to have the pressure 0:20:17.080 --> 0:20:19.880