WEBVTT - Intel's Amazon Deal and Musk's Super PAC 0:00:01.440 --> 0:00:06.680 From Mahart where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.559 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.200 --> 0:00:26.840 Live from New York and San Francisco. 0:00:27.040 --> 0:00:30.080 This is Bloomberg Technology coming up. Intel gets to work 0:00:30.280 --> 0:00:33.720 striking a chip making deal with Amazon after postponing expansion 0:00:33.760 --> 0:00:34.640 plans in Germany. 0:00:35.520 --> 0:00:39.120 Plussy Loon Musk expanding his support for Republicans, don eighteen 0:00:39.120 --> 0:00:42.920 millions to back the GOP in congressional races. 0:00:42.760 --> 0:00:46.560 And Microsoft rewards its shareholders boosting is diffenend and unveiling 0:00:46.600 --> 0:00:49.559 a sixteen billion dollar buyback plan that as we hear 0:00:49.600 --> 0:00:52.559 from co founder Bill Gates as he tackles a different 0:00:52.760 --> 0:00:56.040 three trillion dollar problem. But first, let's check in on 0:00:56.080 --> 0:00:58.600 these markets. Because they s people one hundred hits new 0:00:58.600 --> 0:01:00.800 Interdai highs. We are still well off the hires and 0:01:00.800 --> 0:01:03.000 annows that one hundred about five percent off of them, 0:01:03.280 --> 0:01:04.520 but we managed to push. 0:01:04.319 --> 0:01:05.919 On higher on the day. We're at five to percent. 0:01:06.200 --> 0:01:08.240 We're seeing a Goldilocks reading once again. 0:01:08.319 --> 0:01:09.560 When it comes to economic data. 0:01:09.600 --> 0:01:12.920 There's retail sales surprising to the upside for August, but 0:01:13.080 --> 0:01:16.080 still the market waits for tomorrow the FED and whether 0:01:16.120 --> 0:01:17.800 we get a fifty basis point cut. 0:01:17.800 --> 0:01:21.320 But ed, you're watching the micro Yeah, three big technology 0:01:21.400 --> 0:01:22.440 names moving higher. 0:01:22.520 --> 0:01:24.440 Amazon CEO Andy Jasse. 0:01:24.640 --> 0:01:26.679 Has told staff they have to go back to the 0:01:26.720 --> 0:01:30.560 office five days a week starting in January except for 0:01:30.640 --> 0:01:32.520 extenuating circumstances. 0:01:32.520 --> 0:01:33.720 Everyone's talking about that. 0:01:34.120 --> 0:01:38.520 Microsoft boosting its dividend ten percent, a new sixty billion 0:01:38.600 --> 0:01:41.920 dollar share buyback plan that is pushing the stock higher. 0:01:41.920 --> 0:01:45.720 And then Intel a long list of news and announcements 0:01:45.959 --> 0:01:49.400 that shows Pat Gelsinger's turnaround plan is making. They will 0:01:49.400 --> 0:01:53.240 manufacture a chip for Amazon Aws, they will separate out 0:01:53.280 --> 0:01:56.160 the foundry business to serve customers. They will pull back 0:01:56.160 --> 0:01:57.080 in plants in Europe. 0:01:57.120 --> 0:01:57.760 That's a long list. 0:01:57.840 --> 0:02:00.560 Carrot it is, and we get into it blom Meg's 0:02:00.600 --> 0:02:05.000 Ian King. There is the positive, the deal to fabricate 0:02:05.080 --> 0:02:05.640 for Amazon. 0:02:05.680 --> 0:02:08.040 How important is this the in I. 0:02:07.960 --> 0:02:10.119 Mean, they needed a win, They needed a big name 0:02:10.240 --> 0:02:12.240 customer to come out and say, hey, yeah we can 0:02:12.320 --> 0:02:16.680 use that stuff. How material this particular type of chip is. 0:02:17.120 --> 0:02:18.240 How big a. 0:02:18.320 --> 0:02:22.720 Deal this individually is is another question. And really I 0:02:22.760 --> 0:02:25.480 spoke to Pat ahead of the announcement and he said, look, 0:02:25.600 --> 0:02:28.440 I don't need one big customer. I need lots of customers. 0:02:29.320 --> 0:02:32.320 So really that's the perspective for that particular announcement. 0:02:32.440 --> 0:02:35.360 But this is an important start. We'll show what Pat 0:02:35.440 --> 0:02:37.920 told you on that phone call on screen in a second. 0:02:38.800 --> 0:02:39.919 It's a fabric chip. 0:02:40.320 --> 0:02:43.120 What is a fabric chip and why is it significant 0:02:43.160 --> 0:02:44.840 that Intel has been chosen to make it? 0:02:45.080 --> 0:02:45.240 Yeah? 0:02:45.280 --> 0:02:48.280 I mean this is an integral part of a data center. 0:02:48.320 --> 0:02:50.960 It links other chips together. It's not the kind of 0:02:50.960 --> 0:02:52.840 thing that you have millions and millions of, but it's 0:02:53.000 --> 0:02:55.160 very important and you want it to be made on 0:02:55.280 --> 0:02:58.480 the best possible technology. The fact that Amazon, which is 0:02:58.520 --> 0:03:01.600 one of the, if not the leading data center operator 0:03:01.639 --> 0:03:04.000 in the world, has decided to use Intel, that's an 0:03:04.040 --> 0:03:07.680 affirmation that Intel has something that it can use and 0:03:08.080 --> 0:03:08.720 you know, helps. 0:03:09.520 --> 0:03:10.040 It helps. 0:03:10.120 --> 0:03:14.000 You mentioned that he needs lots and lots of customers, 0:03:14.440 --> 0:03:17.160 but they're not going to be Europe based for the 0:03:17.240 --> 0:03:21.080 time being. How upsetting is this ultimately for Germany and 0:03:21.120 --> 0:03:21.840 Poland today? 0:03:22.680 --> 0:03:25.240 Well, it might have customers in Europe, but they won't 0:03:25.280 --> 0:03:28.880 be being building chips in Germany. Remember, they have a 0:03:28.919 --> 0:03:31.280 plant in Ireland which they said is going to be 0:03:31.320 --> 0:03:34.600 the center of their operations for now in Europe in 0:03:34.720 --> 0:03:37.760 terms of what this means for the actual you know, 0:03:37.800 --> 0:03:40.560 the European investment in semiconductors. 0:03:39.880 --> 0:03:40.960 It's clearly a setback. 0:03:41.040 --> 0:03:43.920 Everybody has been hoping that Intel would kind of ride 0:03:43.960 --> 0:03:46.280 to the rescue, obviously here in the United States, but 0:03:46.320 --> 0:03:49.800 also Europe is pushing this as a public policy. Anything 0:03:49.840 --> 0:03:54.400 that delays that, anything that raises the possibility that it 0:03:54.400 --> 0:03:55.840 won't happen, is obviously not good. 0:03:56.400 --> 0:03:58.960 Let me show you this chart on the Bloomberg terminal. 0:03:59.120 --> 0:04:02.240 It shows us that going back to twenty twenty, Intel's 0:04:02.280 --> 0:04:06.240 only had three quarters where sales have grown. What did 0:04:06.280 --> 0:04:08.680 you learn on your phone call with back Pat Gelsinger 0:04:08.720 --> 0:04:12.160 that suggests this list of actions will change that chart 0:04:12.440 --> 0:04:14.320 and that at the top line they will start to 0:04:14.320 --> 0:04:15.120 see some growth. 0:04:15.320 --> 0:04:15.440 Right. 0:04:15.800 --> 0:04:17.919 What I said to him was like, Pat, do you 0:04:18.000 --> 0:04:19.839 have enough money to keep this thing going? 0:04:19.960 --> 0:04:20.159 Right? 0:04:20.920 --> 0:04:23.440 You know, everybody approves of the plan, everybody approves of 0:04:23.920 --> 0:04:26.200 what you've set out to do, but they are worried 0:04:26.240 --> 0:04:28.359 that you don't have enough money to do that. And 0:04:28.480 --> 0:04:31.200 his answer was, well, this has kind of saved me 0:04:31.279 --> 0:04:33.920 some more money to help me to keep things going. 0:04:34.240 --> 0:04:36.520 I feel like I've got the worst of the investment 0:04:37.240 --> 0:04:39.760 period behind me, and now we're in a position with 0:04:39.839 --> 0:04:42.039 our technology and what we can offer to begin to 0:04:42.120 --> 0:04:44.520 start to bring in those orders that turn things around. 0:04:45.480 --> 0:04:48.400 In King always bringing us the important conversations. 0:04:48.400 --> 0:04:48.719 Thank you. 0:04:49.040 --> 0:04:52.280 Now let's bring in Jordan Klein to continue that conversation, 0:04:52.440 --> 0:04:55.120 tech media and telecom analyst over at Bazooho Americas. 0:04:55.360 --> 0:04:57.039 You'll take on all of this, Jordan. 0:04:57.160 --> 0:04:59.760 You write your note this morning really actually highlighting the 0:04:59.760 --> 0:05:03.839 pa reality for Intel is that in one week alone, 0:05:04.040 --> 0:05:07.400 a company such as Broadcom will add twice the market 0:05:07.480 --> 0:05:11.080 capitalization of an Intel. How are you thinking about the 0:05:11.120 --> 0:05:14.760 news coming from what was the key chip manufacturer of 0:05:15.040 --> 0:05:15.760 ten years ago. 0:05:17.400 --> 0:05:19.320 Yeah, well thanks for having me. I mean, I would 0:05:19.320 --> 0:05:22.320 agree with the insummation that this is an important bit 0:05:22.360 --> 0:05:26.000 of positive news. Intel needed something to kind of help 0:05:26.040 --> 0:05:27.160 the stock and sentiment. 0:05:28.279 --> 0:05:29.479 So I think on one. 0:05:29.320 --> 0:05:32.159 Side, it's at least a affirmation that yes, they have 0:05:32.320 --> 0:05:36.599 this foundry business. They've won an important cloud customer in Amazon, 0:05:37.160 --> 0:05:40.640 But basically it's not we don't really know enough on 0:05:40.680 --> 0:05:43.200 the volume and the timing of when it would actually 0:05:43.320 --> 0:05:46.640 drive you know, revenues for them, and I think now 0:05:46.760 --> 0:05:49.000 the stage is set for them to hopefully go out 0:05:49.279 --> 0:05:52.159 and start adding more customers to the mix. 0:05:52.640 --> 0:05:54.160 Whether that's you. 0:05:54.080 --> 0:05:56.520 Know, the biggest and the best would be in Nvidia, 0:05:56.640 --> 0:05:59.039 but they could get others as well, and that's going 0:05:59.120 --> 0:06:01.560 to be a very zephill to climb, but they got 0:06:01.560 --> 0:06:03.840 to start somewhere, and that's what today. 0:06:03.640 --> 0:06:06.479 Was biggest of the best in Vidia. 0:06:06.600 --> 0:06:09.840 Our investors still feeling that that's where they should be 0:06:09.839 --> 0:06:13.320 allocating that chip's more broadly, chip making is where they 0:06:13.320 --> 0:06:15.320 should be putting money in this time in the market. 0:06:16.680 --> 0:06:17.839 Well, that's a really good question. 0:06:17.920 --> 0:06:20.120 I think people are a bit mixed on how much 0:06:20.160 --> 0:06:23.400 more exposure to semiconductors they want and need at this time. 0:06:24.000 --> 0:06:28.320 The group semiconductors that is is extremely sentiment driven, so 0:06:28.520 --> 0:06:31.840 when it's performing well, it's got the momentum, people are 0:06:31.920 --> 0:06:34.520 generally very happy to ride the wave. And that's what 0:06:34.600 --> 0:06:37.120 you saw all first half of twenty twenty four. It 0:06:37.200 --> 0:06:40.240 was like a fear of missing out led by Nvidia. 0:06:40.440 --> 0:06:43.080 As soon as we hit the highs in the first 0:06:43.080 --> 0:06:45.840 part of July and the group sold off, I think 0:06:45.839 --> 0:06:50.000 investor sentiment shifted. People will worried this group is ahead 0:06:50.000 --> 0:06:53.000 of fundamentals. Evaluations were stretched, and it was time to 0:06:53.040 --> 0:06:57.000 look outside of SEMIS to areas like software or large 0:06:57.000 --> 0:06:59.440 cap Internet, and that's kind of where we are now. 0:06:59.520 --> 0:07:00.239 I would say. 0:07:00.000 --> 0:07:03.640 A last thing is that the investor feedback in SEMIS 0:07:03.720 --> 0:07:06.000 is quite mixed. Even though the group is still up 0:07:06.040 --> 0:07:08.520 a lot this year and the stocks act relatively well, 0:07:10.000 --> 0:07:11.960 not a lot of them are making new highs and 0:07:12.000 --> 0:07:15.560 the fundamentals, meaning what these companies are saying, particularly outside 0:07:15.560 --> 0:07:19.920 of Nvidia and GPUs for Ai, is actually not improving 0:07:20.240 --> 0:07:23.320 in some instances, it's deteriorating a bit, like the auto 0:07:23.400 --> 0:07:24.320 and memory sector. 0:07:26.080 --> 0:07:29.960 Away from the idiosyncratic Jordan, what did the Intel story 0:07:30.000 --> 0:07:33.640 tell you about this investment cycle and through pats lens 0:07:34.240 --> 0:07:36.600 those potential customers and where they might be going. 0:07:38.960 --> 0:07:42.120 Well, it tells me a couple things. It tells me 0:07:42.360 --> 0:07:49.760 that one these large cloud hyperskill customers like Amazon, Meta, Google, Facebook. Sorry, 0:07:49.840 --> 0:07:54.120 you know, these large cloud customers are very interested in 0:07:54.160 --> 0:07:57.520 building and designing their own custom chips. As you pointed 0:07:57.520 --> 0:07:59.360 out early in the show, this is more of a 0:07:59.400 --> 0:08:03.000 fabric new working chip. But keep in mind Amazon is 0:08:03.360 --> 0:08:06.520 very big at building and designing their own chips for 0:08:06.720 --> 0:08:11.280 training and inferencing as opposed to relying too much on Nvidia, 0:08:11.680 --> 0:08:13.160 so I think that's going to continue. 0:08:13.240 --> 0:08:14.040 All these big. 0:08:13.880 --> 0:08:18.120 Cloud companies with large CAPEX spending budgets will seek to 0:08:18.120 --> 0:08:20.760 do as much as they can internally with the help 0:08:20.800 --> 0:08:25.080 of other leading design companies like Broadcom, Marvel, maybe Intel 0:08:25.200 --> 0:08:28.400 and others. It also shows that there's really no end 0:08:28.440 --> 0:08:30.640 in sight here. I think that they're going to look 0:08:30.680 --> 0:08:34.480 to diversify if they can beyond just building all these 0:08:34.559 --> 0:08:37.760 chips with Taiwan Semi, who's the world's leading foundry. But 0:08:37.800 --> 0:08:40.440 they don't want to be too reliant upon them or 0:08:40.480 --> 0:08:44.840 give TSM so much leverage that they can keep raising prices, 0:08:44.840 --> 0:08:46.800 so they kind of want to keep the industry balanced 0:08:46.800 --> 0:08:49.439 and honest, so to speak, and that would be at 0:08:49.440 --> 0:08:52.040 Intel's advantage if they can show and prove they can 0:08:52.120 --> 0:08:55.320 execute at these very advanced, leading edge nodes. 0:08:56.840 --> 0:08:59.520 Jordan, I don't know what you're doing on Wednesday afternoon. 0:09:00.520 --> 0:09:04.440 Here we'll be focusing on the next FOMC decision. You're 0:09:04.520 --> 0:09:07.960 somebody whose desk is just every day flowing with technology 0:09:08.040 --> 0:09:10.880 news essentially, So how do you and all the people 0:09:10.920 --> 0:09:13.840 that phone you at five am think about the FED tomorrow? 0:09:16.559 --> 0:09:19.120 Well, I think half of them, like myself just wanted 0:09:19.200 --> 0:09:21.040 to be behind us so we can move on and 0:09:21.080 --> 0:09:23.920 focus more on fundamentals as opposed to the FED and 0:09:23.960 --> 0:09:29.679 the macro. I tend to think this one is one 0:09:29.720 --> 0:09:32.760 of the more important FED decisions and announcements that we've 0:09:32.800 --> 0:09:35.320 had in some time, But it also feels like a 0:09:35.320 --> 0:09:38.440 little bit overhyped in terms of are we really is 0:09:38.440 --> 0:09:41.520 the market really going to change dramatically whether it's twenty 0:09:41.559 --> 0:09:46.240 five or fifty basis points. Are institutional investors and big 0:09:46.320 --> 0:09:49.880 mutual fund managers going to dramatically change the makeup of 0:09:49.920 --> 0:09:53.480 their portfolio based on twenty five versus fifty? I don't 0:09:53.520 --> 0:09:56.280 think so. I think they're already of the view that 0:09:56.520 --> 0:09:59.400 whether it's twenty five or fifty, the FED is going 0:09:59.440 --> 0:10:01.640 to continue to probably air on the side of wanting 0:10:01.679 --> 0:10:05.720 to ease as opposed to keep rates high. And with 0:10:05.840 --> 0:10:08.000 that backdrop, as long as we can believe in a 0:10:08.040 --> 0:10:11.560 soft landing, which I think most investors do, they're going 0:10:11.640 --> 0:10:14.760 to probably stay long equities, and they're probably going to 0:10:14.840 --> 0:10:17.680 continue to look for growth, and that's going to favor 0:10:17.840 --> 0:10:21.240 key parts of tech. So bottom line, I think when 0:10:21.240 --> 0:10:24.480 the dust settles in a week, the fundamentals and the 0:10:24.520 --> 0:10:26.960 backdrop for tech still remain pretty favorable. 0:10:27.320 --> 0:10:30.680 Does it still favor the most valuable companies? I think 0:10:30.679 --> 0:10:33.960 of Microsoft today once again having money back in terms 0:10:33.960 --> 0:10:38.360 of buybacks, promised dividends given, but it's so valuable already. 0:10:38.760 --> 0:10:40.840 Do the sentiment stick with it? 0:10:43.440 --> 0:10:47.880 Oh yeah, I definitely think that there's no deterioration or 0:10:47.920 --> 0:10:51.839 weakening and positive sentiment for these mag seven you know, 0:10:52.000 --> 0:10:57.000 particularly these names like Microsoft and Video, Amazon and Meta. 0:10:57.080 --> 0:10:59.400 That the companies that are perceived to be the leaders 0:10:59.400 --> 0:11:00.600 in both class out an. 0:11:00.559 --> 0:11:02.680 AI, even Apple. 0:11:02.720 --> 0:11:04.640 I mean it's down a bit the last few days, 0:11:05.120 --> 0:11:07.360 but to be to be honest, like if AI on 0:11:07.400 --> 0:11:09.400 the smartphone is going to work, they're going to be 0:11:09.559 --> 0:11:12.160 leading the charge. And I just don't think you can 0:11:12.200 --> 0:11:16.720 get that exposure, that potential growth in other areas of tech, 0:11:17.200 --> 0:11:19.839 and actually probably not in other areas of the market. 0:11:19.960 --> 0:11:21.880 The debate is going to be what you pay for it, 0:11:22.320 --> 0:11:25.560 and that's that's you know, hard to determine. It's it's 0:11:25.600 --> 0:11:27.640 more of an art form than a than a science. 0:11:28.080 --> 0:11:31.600 But as long as rates are coming down and the economies, 0:11:31.640 --> 0:11:34.840 you know, not grinding to a halt, I tend to 0:11:34.840 --> 0:11:37.400 think people will pay up for growth and that favors 0:11:37.440 --> 0:11:41.360 these large megacaps as opposed to the smaller companies that 0:11:41.760 --> 0:11:44.400 are going to have to see if the economy. 0:11:43.960 --> 0:11:44.640 Holds up or not. 0:11:46.080 --> 0:11:49.200 MISSOI America's analyst Jordan Klein, thank you very much. Coming 0:11:49.240 --> 0:11:51.440 up on the show, we have all the details on 0:11:51.600 --> 0:11:54.520 Uber's latest driver safety perch that's next. 0:11:55.040 --> 0:12:05.760 This has been that technology. 0:12:08.280 --> 0:12:13.000 Starting tomorrow, Uber will begin automatically verifying passengers, checking their 0:12:13.000 --> 0:12:17.000 account information against third party identity databases, all in an 0:12:17.000 --> 0:12:19.080 effort to make drivers feel safer. 0:12:19.400 --> 0:12:21.920 Bloomegs. Dana Wrman joins us for more. 0:12:22.240 --> 0:12:24.440 A big step one that's been called for. 0:12:25.640 --> 0:12:28.480 Yes, And I don't think we talk enough about driver's safety, 0:12:28.520 --> 0:12:30.720 which is odd because when you think about it, these 0:12:30.720 --> 0:12:33.520 are drivers who are picking up strangers, mostly in their 0:12:33.559 --> 0:12:36.280 own cars, and I can imagine that being somewhat scary, 0:12:36.320 --> 0:12:40.040 maybe vulnerable feeling. And these are measures being taken really 0:12:40.080 --> 0:12:42.600 to make drivers feel a little safer as they pick 0:12:42.679 --> 0:12:44.000 up drivers in the day. 0:12:43.920 --> 0:12:46.480 To day Dana, How's this going to work? 0:12:46.520 --> 0:12:48.360 In some cases, like if you pay with a gift 0:12:48.400 --> 0:12:51.439 card on Uber rather than attach a credit card, there 0:12:51.480 --> 0:12:55.400 is some verification as a passenger or rider you already 0:12:55.400 --> 0:12:57.719 have to go through what will be required of us 0:12:57.720 --> 0:12:58.360 going forward. 0:12:58.760 --> 0:13:01.280 Yeah, so I don't excuse me. 0:13:01.320 --> 0:13:03.920 Writers who use anonymous payment methods, and I don't know 0:13:03.920 --> 0:13:06.520 how many of them there are, will need to go 0:13:06.559 --> 0:13:09.480 through a manual process, but most of us, For most 0:13:09.480 --> 0:13:11.880 of us, the process will be automatic, and it might 0:13:11.960 --> 0:13:14.080 even be that it's already been done. I actually checked 0:13:14.080 --> 0:13:17.400 my Uber account before joining you all here on TV 0:13:17.600 --> 0:13:19.880 and I had check marks next to both my cell 0:13:19.880 --> 0:13:22.280 phone number and my email address in my account. So 0:13:22.360 --> 0:13:26.200 for many customers, that automatic process may have already taken place. 0:13:26.240 --> 0:13:28.520 And it's worth noting that you cannot, as a writer, 0:13:28.720 --> 0:13:31.640 opt out of the automatic process. So if you have 0:13:31.760 --> 0:13:34.880 a phone number attached the email address, ubers going to 0:13:35.160 --> 0:13:38.160 match you against a third party database to verify your identity, 0:13:38.640 --> 0:13:40.479 and it may already have been done. 0:13:41.240 --> 0:13:44.160 This is one of a couple of steps that doing 0:13:44.920 --> 0:13:48.480 dosh cooms as well. All of this costs, but the 0:13:48.520 --> 0:13:50.920 reward must be more sustainable. 0:13:51.000 --> 0:13:52.880 Drivers on that platform. 0:13:52.760 --> 0:13:55.720 Yes, drivers have said in the past they're worried about 0:13:55.720 --> 0:13:59.319 their safety, both physically and reputationally. They're worried about things 0:13:59.400 --> 0:14:02.920 like carjack, but aside from violent incidents, they're worried about. 0:14:02.679 --> 0:14:05.160 Malicious reports, just reports. 0:14:04.760 --> 0:14:07.600 From maybe spiteful riders that could really tank their rating 0:14:07.679 --> 0:14:11.479 and therefore their standing with the platform and by extension, 0:14:12.000 --> 0:14:15.400 their income. So one of the measures today, in addition 0:14:15.480 --> 0:14:18.080 to the automatic identity. 0:14:17.720 --> 0:14:19.800 Verification, is the ability. 0:14:19.360 --> 0:14:22.440 To no longer match within the future someone who you've 0:14:22.480 --> 0:14:23.000 rated as a. 0:14:23.040 --> 0:14:25.280 Driver a two or three. 0:14:25.520 --> 0:14:28.400 As it is, you wouldn't be matched against again with 0:14:28.520 --> 0:14:31.160 someone who you rated just one out of five. But 0:14:31.240 --> 0:14:33.160 this is sort of an extension of that, saying, Okay, 0:14:33.200 --> 0:14:35.680 this passenger was a bit of a jerk, I rated 0:14:35.680 --> 0:14:36.560 them a two or three. 0:14:36.720 --> 0:14:37.880 I'm not going to see them again. 0:14:38.920 --> 0:14:41.840 Bloomberg's Dana Wolman, thank you very much. Now. 0:14:41.960 --> 0:14:45.520 Microsoft raised its quarterly dividend ten percent and unveiled a 0:14:45.560 --> 0:14:49.440 new sixty billion dollar stock buyback program, matching the size 0:14:49.480 --> 0:14:52.200 of the repurchase plan three years ago. The company said 0:14:52.240 --> 0:14:55.600 shareholders as of November twenty first will receive a quarterly 0:14:55.600 --> 0:14:58.680 dividend of eighty three cents a share, compared with the 0:14:58.720 --> 0:15:02.440 current seventy five cents. The buyback agreement represents less than 0:15:02.440 --> 0:15:05.080 two percent of Microsoft's market value. 0:15:05.120 --> 0:15:06.160 Carac Let's just. 0:15:06.120 --> 0:15:09.120 Discuss in one of Microsoft's co founders Bill Gates, as 0:15:09.120 --> 0:15:12.640 his foundation just released its Goalkeepers Report for twenty twenty four, 0:15:12.880 --> 0:15:16.600 highlighting a sudden halt in the global health boom with 0:15:16.760 --> 0:15:20.600 a worsening child nutrition crisis causing a potential three trillion 0:15:20.640 --> 0:15:21.880 dollars in economic losses. 0:15:22.200 --> 0:15:24.119 I sat down with Microsoft co founder. 0:15:23.880 --> 0:15:26.920 Bill Gates to discuss just this, how technology and AI 0:15:27.040 --> 0:15:29.480 can help, and why resources are needed. 0:15:29.720 --> 0:15:32.480 Take a listen, We do need to raise money to 0:15:32.520 --> 0:15:35.800 get resources for this so that the poor countries, you know, 0:15:35.880 --> 0:15:38.200 get out of the poverty trap and then are our 0:15:38.240 --> 0:15:44.960 self sufficient. The innovation is going to accelerate tools like 0:15:45.040 --> 0:15:48.960 AI or helping us understand that god the immune system, 0:15:49.480 --> 0:15:53.760 you know, how to design vaccines in a very deep way. 0:15:53.840 --> 0:15:54.720 And you know, the. 0:15:54.760 --> 0:15:59.200 Key thing that the Foundation has my innovation is making 0:15:59.240 --> 0:16:02.400 sure it's not just helping the rich countries, but it's 0:16:02.400 --> 0:16:04.320 helping the poorest. 0:16:05.080 --> 0:16:06.560 And so, you know, can. 0:16:06.440 --> 0:16:10.200 They get medical advice in their native language on their 0:16:10.240 --> 0:16:15.840 cell phone. Can they have their diseases that are so ignored, 0:16:16.000 --> 0:16:20.840 like malaria, Can we use AI to develop ways to 0:16:21.080 --> 0:16:24.960 not only reduce that but eventually eradicate it. And so 0:16:25.440 --> 0:16:27.520 you know, that's where the Foundation is looking at the 0:16:27.520 --> 0:16:33.120 innovation and making sure that it's benefiting those most in need. 0:16:33.720 --> 0:16:37.400 The foundation talking with global leaders often, I'm sure global 0:16:37.480 --> 0:16:42.120 leaders of wealthy, developed nations who are preoccupied right now 0:16:42.160 --> 0:16:45.840 with their own political instabilities, their own worries about the 0:16:45.880 --> 0:16:49.760 cost of living. Will you get the help you need 0:16:49.800 --> 0:16:51.120 from developed nations? 0:16:51.120 --> 0:16:51.640 Do you think? 0:16:53.640 --> 0:16:54.920 Now that's a very good question. 0:16:56.080 --> 0:16:56.320 You know. 0:16:56.360 --> 0:17:00.000 The dream is that even in the face of huge 0:17:00.160 --> 0:17:05.520 budgetary challenges that all countries have, that they would be 0:17:05.600 --> 0:17:09.600 willing to have one to two percent that go to 0:17:09.680 --> 0:17:13.439 help the poorest, to help these countries move forward. And 0:17:13.920 --> 0:17:17.920 these are things where you're saving a life for less 0:17:17.960 --> 0:17:21.119 than a thousand dollars per life saved, so, you know, 0:17:21.480 --> 0:17:26.720 very catalytic, very well measured. You know, I wouldn't be 0:17:26.800 --> 0:17:28.840 putting my money in unless I knew that it was 0:17:29.760 --> 0:17:32.960 extremely well spent. And so we're trying to keep this 0:17:33.080 --> 0:17:37.240 on the agenda to continue that miracle that took place 0:17:38.160 --> 0:17:42.440 where we made so much progress getting rid of childhood death. 0:17:43.119 --> 0:17:45.639 Bill gates there and often ed to solve what is 0:17:45.680 --> 0:17:48.240 a three trillion dollar economic issue. 0:17:48.880 --> 0:17:49.920 Is not rocket science. 0:17:50.119 --> 0:17:52.600 It's about getting vitamins out to people. It's about more 0:17:52.640 --> 0:17:53.479 productive cows. 0:17:54.680 --> 0:17:57.120 Yeah, and consistent with the foundation. What Gates is looking 0:17:57.160 --> 0:18:00.720 for is a technology that is upfront, affordable and scale 0:18:01.040 --> 0:18:03.240 and that's consistent always done. But they're putting a big 0:18:03.320 --> 0:18:06.400 check in particularly a nutrition microby and things like that. 0:18:14.000 --> 0:18:16.560 Time now for talking tech and first up Hong Kong 0:18:16.600 --> 0:18:19.320 while it's preparing to issue a policy statement on the 0:18:19.400 --> 0:18:22.520 use of AI in finance, escording to sources, with the 0:18:22.520 --> 0:18:24.880 document broadly intended to signal Hong Kong's. 0:18:24.560 --> 0:18:26.760 Support for artificial intelligence, and. 0:18:26.840 --> 0:18:28.800 The move could catalyze the use of the technology in 0:18:28.880 --> 0:18:33.520 areas from training to investment, banking and cryptocurrencies. Plus, Lenovo 0:18:33.760 --> 0:18:37.440 started building AI servers in south of India, moving beyond 0:18:37.520 --> 0:18:40.359 products such as laptops and smartphones, and the Chinese company 0:18:40.359 --> 0:18:44.360 will also build out its facilities in Bangalore region, including 0:18:44.400 --> 0:18:46.160 a research lab with a focus on. 0:18:46.119 --> 0:18:47.920 AI and Amazon. 0:18:48.040 --> 0:18:51.480 CEO Andy Jase he's moving to streamline the company. In 0:18:51.520 --> 0:18:54.840 a memo to employees yesterday, the CEO announced cutting management 0:18:54.920 --> 0:18:58.720 layers and ordered employees to return to the office five 0:18:58.840 --> 0:18:59.440 days a week. 0:19:00.240 --> 0:19:02.720 In January, more. 0:19:02.520 --> 0:19:05.879 Tech news as Salesforce is kicking off its Dreamforce event today. 0:19:05.880 --> 0:19:09.760 It's also unveiling a pivot in its AI strategy now 0:19:09.800 --> 0:19:14.200 saying that it's AI tools can handle tasks without human supervision, 0:19:14.520 --> 0:19:17.399 and changing the way it charges for software. Let's bring 0:19:17.480 --> 0:19:20.119 in Bloomberg intelligence analyst and a rag Rana and on 0:19:20.359 --> 0:19:24.240 the charging they're going to start doing two dollars per 0:19:24.320 --> 0:19:28.679 conversation handled by an AI agent as opposed to a 0:19:28.720 --> 0:19:31.440 subscription on a per head basis. 0:19:32.080 --> 0:19:33.679 What's the BI reaction to that. 0:19:35.000 --> 0:19:37.080 Yeah, So when you look at the way some of 0:19:37.119 --> 0:19:39.800 these core pilots are being priced, you know, companies like 0:19:39.880 --> 0:19:42.320 Microsoft are saying they're going to charge thirty dollars per 0:19:42.440 --> 0:19:46.280 user per month. So that's one pricing mechanism. Another pricing 0:19:46.320 --> 0:19:49.480 mechanism is consumption based, which is what you just mentioned. 0:19:49.920 --> 0:19:53.680 Adobe has a similar one for their Firefly appligation where 0:19:53.680 --> 0:19:55.600 you're going to get some credits initially and then you're 0:19:55.600 --> 0:19:57.400 going to have to pay for it. And the third 0:19:57.440 --> 0:19:59.960 one would be just part of the full enterprise packet. 0:20:00.119 --> 0:20:02.080 So there are several ways you're going to modernize this 0:20:02.080 --> 0:20:06.080 is monetize this, but needless to say, over the next 0:20:06.160 --> 0:20:08.479 few years, we think these costs are going to reduce 0:20:08.760 --> 0:20:12.119 dramatically because currently the reason why it's a little bit 0:20:12.160 --> 0:20:15.240 more expensive is because it really required a lot of 0:20:15.320 --> 0:20:19.320 resources to train these large language models. And over time 0:20:19.400 --> 0:20:22.360 that consumption, that processing is going to improve. 0:20:23.400 --> 0:20:26.679 So as it becomes cheaper, will that be reflected in 0:20:26.720 --> 0:20:29.639 the price point that you and I charged for any conversation? 0:20:30.520 --> 0:20:32.680 Yeah, I think that's going to be beyond for everything, 0:20:32.760 --> 0:20:35.880