WEBVTT - DeepSeek Upends AI Industry; Trump Vows 'Much Bigger' Tariffs 0:00:02.720 --> 0:00:09.080 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.240 --> 0:00:13.440 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.440 --> 0:00:15.160 are the stories we're following today. 0:00:15.360 --> 0:00:18.840 Karen, we begin with the Chinese artificial intelligence startup that 0:00:19.040 --> 0:00:21.599 royal the global markets and led to the biggest one 0:00:21.680 --> 0:00:25.639 day individual stock sell off in history. For the latest 0:00:25.640 --> 0:00:28.600 on Deep Seek, let's bring in Bloomberg's John Tucker. 0:00:28.680 --> 0:00:31.800 John Nathan, the Deep Seek frenzy e raised five hundred 0:00:31.800 --> 0:00:35.400 and eighty nine billion dollars from Invidious market cap, the 0:00:35.520 --> 0:00:39.400 largest route in market history. The stock plunge seventeen percent. 0:00:39.800 --> 0:00:43.000 The techa A Nastak tumbled nearly three percent. Jordan Klin 0:00:43.120 --> 0:00:45.280 is managing director at Mazouoho Securities. 0:00:45.800 --> 0:00:49.279 It's a beginning of probably a consolidation phase and some 0:00:49.320 --> 0:00:50.000 profit taking. 0:00:50.040 --> 0:00:50.480 For sure. 0:00:50.600 --> 0:00:53.960 Deep Seek is sparking fear over US tech dominance. Aaron 0:00:54.080 --> 0:00:56.800 Kennon of Clear Harbor Asset Management sees it this way. 0:00:57.080 --> 0:00:59.080 We're seeing what I would call sort of the gradual 0:00:59.120 --> 0:01:01.920 commoditizing of artificial intelligence. 0:01:02.040 --> 0:01:05.800 Deep Seek's low cost approach has reignited concerns that big 0:01:05.920 --> 0:01:09.240 US companies have poured too much money into developing artificial 0:01:09.280 --> 0:01:13.560 intelligence and Victoria Fernandez of Crossmarked Global Investment weigh in. 0:01:14.040 --> 0:01:16.480 Obviously, the tech game can turn on a dime. 0:01:16.680 --> 0:01:19.360 We've seen it over the last twenty four hours. I 0:01:19.480 --> 0:01:22.800 do think that the US is probably still a little 0:01:22.800 --> 0:01:23.440 bit of head. 0:01:23.959 --> 0:01:27.200 Deep Seek even drew praise from Nvidia. In Vidia set 0:01:27.240 --> 0:01:30.040 in a statement that deep Sex model is an excellent 0:01:30.120 --> 0:01:34.839 AI advancement, and deep See's progress suggests Chinese AI engineers 0:01:35.080 --> 0:01:38.360 have found a way to work around US semiconductor export bands, 0:01:38.720 --> 0:01:43.039 focusing on greater efficiency with limited resources. The latest AI 0:01:43.120 --> 0:01:46.400 model of deep Seek, it's called Uri, is now at 0:01:46.400 --> 0:01:49.280 the top of Apple's App Store rankings, and being in 0:01:49.280 --> 0:01:51.720 the spotlight all of a sudden also does bring problems. 0:01:51.960 --> 0:01:54.560 The companies had to limit signups due to large scale 0:01:54.600 --> 0:01:58.320 malicious attacks on its services, and even this morning the 0:01:58.440 --> 0:02:02.600 company reports degraded performance. In this morning, Nathan and Karen 0:02:02.760 --> 0:02:05.880 in videos shares we should point out they're up five percent. 0:02:06.560 --> 0:02:08.760 All right, John, thank you well. The Deepseak sell off 0:02:08.760 --> 0:02:11.360 on Wall Street also hit the world's elite, and we 0:02:11.400 --> 0:02:13.680 get that story with Bloomberg's Gino Cervetti. 0:02:13.919 --> 0:02:16.760 The world's five hundred richest people lost to combined one 0:02:16.880 --> 0:02:20.720 hundred eight billion on Monday. Billionaires whose fortunes are linked 0:02:20.720 --> 0:02:24.520 to artificial intelligence were the biggest losers, and Vidio's CEO 0:02:24.639 --> 0:02:28.400 Jensen Wang saw his fortune fall more than twenty billion dollars, 0:02:28.480 --> 0:02:32.040 or a twenty percent drop. Oracle co founder Larry Ellison's 0:02:32.080 --> 0:02:35.000 twenty two point six billion dollar loss was larger in 0:02:35.080 --> 0:02:38.960 absolute terms, but represented twelve percent of his fortune. Dell's 0:02:39.040 --> 0:02:43.040 Michael Dell lost at thirteen billion. Soaring valuations for so 0:02:43.160 --> 0:02:48.240 called AI hyperscalers including Meta, Alphabet and Microsoft have generated 0:02:48.280 --> 0:02:51.640 billions in wealth for their owners since open Ai unveiled 0:02:51.720 --> 0:02:55.639 chat GPT in November of twenty twenty two. These companies 0:02:55.680 --> 0:02:59.119 have spent huge sums to develop and run AI systems 0:02:59.160 --> 0:03:02.320 by hoarding top of the line semiconductors and the energy 0:03:02.360 --> 0:03:06.519 supplies needed to run them. Gina Cervetti Bloomberg Radio. 0:03:06.400 --> 0:03:07.520 All right, Gina, thank you. 0:03:07.639 --> 0:03:10.560 One of deep Seek's biggest competitors in the US could 0:03:10.560 --> 0:03:13.080 be open Ai, and in a post on x the 0:03:13.080 --> 0:03:16.320 company CEO Sam Aldman said deep seeks are one is 0:03:16.400 --> 0:03:19.680 an impressive model. He added quote we will obviously deliver 0:03:19.800 --> 0:03:23.160 much better models, and also it's legit invigorating to have 0:03:23.200 --> 0:03:26.000 a new competitor end quote. Meanwhile, we caught up with 0:03:26.040 --> 0:03:29.000 tech investor Cathy Wood to get her reaction about Deep Seek. 0:03:29.560 --> 0:03:31.840 I think what it's telling us is the cost of 0:03:31.840 --> 0:03:35.480 innovation is collapsing, which it has been doing. I mean, 0:03:35.520 --> 0:03:41.080 the cost of AI training is dropping before this seventy 0:03:41.120 --> 0:03:45.119 five percent per year, the cost for inference eighty five 0:03:45.160 --> 0:03:49.360 to ninety percent. I think it throws the weight more 0:03:49.440 --> 0:03:53.800 towards inference chips from training chips, and so in Vidia's 0:03:53.960 --> 0:03:57.560 highly exalted and deservedly so in the training chip space. 0:03:57.840 --> 0:04:00.680 Our Investments CEO Kathy Would made the comments in an 0:04:00.720 --> 0:04:03.000 interview with Bloomberg earlier this morning in London. 0:04:03.400 --> 0:04:03.880 On Nathan. 0:04:03.960 --> 0:04:06.680 President Trump also weighing in on deep Seek. 0:04:06.960 --> 0:04:12.160 The release of Deepseek AI from a Chinese company should 0:04:12.200 --> 0:04:14.600 be a wake up call for our industries that we 0:04:14.720 --> 0:04:17.960 need to be laser focused on competing to win because 0:04:18.000 --> 0:04:19.839 we have the greatest scientists in the world. 0:04:20.200 --> 0:04:23.359 And Trump also sees deep Seek's apparent breakthrough as good 0:04:23.480 --> 0:04:26.320 because quote, you don't have to spend as much money. 0:04:26.240 --> 0:04:26.520 Thank care. 0:04:26.560 --> 0:04:29.040 And the President's also weighing in on the future of 0:04:29.160 --> 0:04:33.160 another Chinese company, TikTok, he told reporters on air Force 0:04:33.240 --> 0:04:36.279 one that Microsoft is in talks to acquire the hugely 0:04:36.320 --> 0:04:37.000 popular app. 0:04:37.240 --> 0:04:39.000 I think somebody's going to buy it, pay a lot 0:04:39.040 --> 0:04:42.480 of money, have a lot of jobs, keep a platform. 0:04:42.160 --> 0:04:44.000 Open, and having to be very secure. 0:04:44.279 --> 0:04:46.279 If I don't sign that, it closes. 0:04:47.200 --> 0:04:51.000 Following the President's comments, Microsoft declined to comment on the 0:04:51.080 --> 0:04:54.120 company's involvement in any possible deal Well Nathan. 0:04:54.200 --> 0:04:56.760 President Trump is also laying out more details on his 0:04:56.880 --> 0:04:59.480 tariff plans. At a speech to House Republicans at his 0:04:59.600 --> 0:05:02.920 direlt golf club, the President said he plans to impose 0:05:03.040 --> 0:05:07.719 duties on computer chips, pharmaceuticals, and metals to encourage foreign 0:05:07.800 --> 0:05:08.840 production in the US. 0:05:09.120 --> 0:05:10.920 We want them to come back, and we don't want 0:05:10.920 --> 0:05:13.640 to give them billions of dollars, like this ridiculous program 0:05:13.760 --> 0:05:16.159 that Biden has give everybody billions of dollars. They already 0:05:16.200 --> 0:05:18.840 have billions of dollars. They've got nothing but money. 0:05:18.960 --> 0:05:19.159 Joe. 0:05:19.720 --> 0:05:22.440 Later, the President told reporters he wants to enact across 0:05:22.480 --> 0:05:25.080 the board tariffs that are quote much bigger than two 0:05:25.120 --> 0:05:28.080 and a half percent. Trump was responding to a Financial 0:05:28.120 --> 0:05:31.680 Times report that is newly confirmed Treasury Secretary Scott Besant 0:05:32.040 --> 0:05:35.159 supports starting with a global two and a half percent 0:05:35.320 --> 0:05:38.200 tariff rate, then raising it by the same amount each 0:05:38.320 --> 0:05:39.200 month and Karen. 0:05:39.200 --> 0:05:41.920 President Trump also says he hopes House Republicans will pass 0:05:42.040 --> 0:05:45.640 legislation to complete the border wall and step up deportation efforts, 0:05:45.680 --> 0:05:49.239 while also extending his twenty seventeen tax cuts and boosting 0:05:49.320 --> 0:05:52.560 oil and gas production. But the President's leaving the details 0:05:52.800 --> 0:05:53.240 up to them. 0:05:53.720 --> 0:05:56.000 Whether it's one bill, two bills, I don't care. Let 0:05:56.120 --> 0:05:57.560 these guys are going to work it out. They're going 0:05:57.640 --> 0:05:59.080 to work it out one way or the other. But 0:05:59.160 --> 0:06:01.400 the bottom line, the result is going to be the same. 0:06:01.480 --> 0:06:04.200 We want to have all of those benefits, and we 0:06:04.279 --> 0:06:07.599 want to keep people's taxes low and actually make them lower. 0:06:07.839 --> 0:06:10.960 Following President Trump's speech, one GOP lawmaker called it not 0:06:11.200 --> 0:06:14.240 helpful that the President wouldn't be more specific. House Speaker 0:06:14.279 --> 0:06:16.560 Mike Johnson says lawmakers will spend much of their two 0:06:16.640 --> 0:06:19.560 day retreat behind closed doors to come up with a strategy. 0:06:20.080 --> 0:06:22.480 Well. Nathan returned now to the latest developments in the 0:06:22.520 --> 0:06:25.360 Middle East. To Bloomberg News has learned Israeli Prime Minister 0:06:25.480 --> 0:06:28.840 Benjamin nettan Yahoo, is planning to visit Washington next week 0:06:28.920 --> 0:06:31.400 to meet with President Trump. The sit down would come 0:06:31.440 --> 0:06:33.440 at a critical time, just weeks until the end of 0:06:33.480 --> 0:06:36.080 the first phase of the pause in fighting in Gaza. 0:06:36.440 --> 0:06:39.120 Skeptics have questioned whether the deal will hold through its 0:06:39.200 --> 0:06:42.279 second phase, which could ultimately lead to a permanent end 0:06:42.360 --> 0:06:47.720 to the war in Gaza. Time now for a look 0:06:47.720 --> 0:06:49.440 at some of the other stories making news in New 0:06:49.520 --> 0:06:51.240 York and around the world. And for that we're joined 0:06:51.240 --> 0:06:54.279 by Bloomberg's Michael Barr. Michael, Good Morning, Good morning, Karen. 0:06:54.360 --> 0:06:58.320 After rain extinguished the last of the big Palisades fire 0:06:58.440 --> 0:07:01.320 in Los Angeles, the city is now allowing everybody to 0:07:01.360 --> 0:07:03.960 go back in to see what remains of their homes 0:07:04.480 --> 0:07:07.280 for the first time since the Palisades fire started in 0:07:07.440 --> 0:07:12.040 days after President Trump visited, Los Angeles, Mayor Karen Bass 0:07:12.160 --> 0:07:14.280 announced all evacuees can return. 0:07:14.600 --> 0:07:19.160 Today is really about focusing on the recovery and getting 0:07:19.240 --> 0:07:20.640 people back home. 0:07:21.280 --> 0:07:24.160 This woman says some residents advised there not to go 0:07:24.360 --> 0:07:25.840 back because there's nothing left. 0:07:26.120 --> 0:07:29.760 It's a lot to lose everything that you've collected. I 0:07:29.800 --> 0:07:32.040 think over the last you know, your adult life and 0:07:32.080 --> 0:07:32.960 even your childhood. 0:07:33.400 --> 0:07:36.440 The neighborhoods are only open to residents from six am 0:07:36.520 --> 0:07:39.040 to six pm because there is no power and some 0:07:39.240 --> 0:07:43.240 areas require a police escort to get in. The Centers 0:07:43.280 --> 0:07:46.200 for Disease Control and Prevention staff have been ordered to 0:07:46.240 --> 0:07:50.320 cut off all communications with the World Health Organization. This 0:07:50.480 --> 0:07:54.040 comes following an executive order from President Trump last week. 0:07:54.520 --> 0:07:59.280 A CDC's deputy director sent the directive in an email, 0:07:59.720 --> 0:08:02.920 which which also said CDC staff to sign to work 0:08:03.040 --> 0:08:06.240 for the who are also being told not to come 0:08:06.320 --> 0:08:11.400 into the office. Peter Mayberduke is Access to Medicine's director 0:08:11.720 --> 0:08:12.840 at Public Citizen. 0:08:13.320 --> 0:08:17.560 It's sometimes underappreciated how deeply the United States is involved 0:08:17.600 --> 0:08:22.560 in scientific collaboration internationally. There are more than seventy who 0:08:22.720 --> 0:08:27.240 collaborating centers in the United States. The United States pulls out, 0:08:27.600 --> 0:08:32.240 our new political competitors are waiting to fill that gap. 0:08:32.760 --> 0:08:35.599 Maybordew Can Other experts say the sudden stoppage is a 0:08:35.679 --> 0:08:38.760 surprise and will set back work on investigating and trying 0:08:38.800 --> 0:08:43.840 to stop outbreaks of certain viruses in Africa. The MTA 0:08:43.960 --> 0:08:48.040 next month will begin releasing monthly review collection figures from 0:08:48.120 --> 0:08:51.560 New York City's new congestion pricing toll as. The transit 0:08:51.600 --> 0:08:55.000 agency plans to borrow five hundred million dollars of short 0:08:55.160 --> 0:08:59.880 term debt that the tolling program will ultimately repay. ZIPATL, 0:09:00.120 --> 0:09:03.360 the MTA's deputy Chief Financial officers said the authority will 0:09:03.440 --> 0:09:07.360 release at its Finance Committee meeting that it is so 0:09:07.559 --> 0:09:11.760 much collected so far in pricing revenue that the agency 0:09:11.800 --> 0:09:16.520 collected in January. New York City's congestion pricing program is 0:09:16.600 --> 0:09:19.640 the first in the nation in charges most motorist nine 0:09:19.679 --> 0:09:22.719 dollars when they interparts in Manhattan Global News twenty four 0:09:22.760 --> 0:09:24.840 hours a day and whenever you want it with Bloomberg 0:09:24.880 --> 0:09:27.200 News Now, Michael Barn, this is Bloomberg, Karen. 0:09:27.480 --> 0:09:28.600 Sorry, Malcolm Barr, thank you. 0:09:33.480 --> 0:09:35.679 Time now for the Bloomberg Sports Update brought to you 0:09:35.720 --> 0:09:38.480 if I try stayed out. Eagre's John stash Hour, John 0:09:38.520 --> 0:09:39.319 good Nortek. 0:09:39.040 --> 0:09:41.440 Good morning, Karen. If you score one hundred and forty 0:09:41.559 --> 0:09:43.920 three points in an NBA game, you're going to win 0:09:44.000 --> 0:09:46.000 the next did that Saturday. It was the most points 0:09:46.040 --> 0:09:48.600 they had scored in a non overtime game in forty 0:09:48.720 --> 0:09:51.720 five years. Two nights later, again at the Garden, they 0:09:51.840 --> 0:09:55.160 scored one hundred and forty three points, again beat Memphis 0:09:55.240 --> 0:09:58.680 by thirty seven, seven nicks and double figures. Michael Bridges 0:09:58.720 --> 0:10:01.120 the high mand with twenty eight nixt rolling four straight 0:10:01.160 --> 0:10:04.000 wins sixteen to the last twenty two, and the Celtics 0:10:04.080 --> 0:10:07.120 lost at home to Houston. Amen Thompson thirty three points 0:10:07.160 --> 0:10:08.760 for the Rockets at a game when he shot out 0:10:08.760 --> 0:10:11.880 the buzzer niterion, only a game behind Boston first second 0:10:11.920 --> 0:10:14.559 place in the East. Cleveland's in first cans for thirty 0:10:14.679 --> 0:10:17.000 seven and nine. They beat Detroit. The Nets lost at 0:10:17.040 --> 0:10:20.640 Barkleys to Sacramento one ten to ninety six for Brooklyn. 0:10:20.760 --> 0:10:23.160 That's seven losses in a row, twelve the last thirteen. 0:10:23.240 --> 0:10:27.319 Miami won in double overtime without Jimmy Butler, suspended for 0:10:27.440 --> 0:10:30.319 a third time. He walked out of practice after learning 0:10:30.720 --> 0:10:34.000 he wasn't going to start the game. Certainly appears Butler's 0:10:34.000 --> 0:10:36.400 gonna get traded before the deadline. Devils lost four to 0:10:36.520 --> 0:10:41.280 at Philadelphia. Nothing like overtime in indoor partially simulated golf 0:10:41.400 --> 0:10:45.320 Tiger Woods. His team beat Rory McElroy's team in TGL. 0:10:45.480 --> 0:10:48.400 Aaron Glenn introduced as the new coach of the Jets. 0:10:48.440 --> 0:10:51.320 Here was his message to his team to any players. 0:10:51.360 --> 0:10:51.640 That's here. 0:10:51.760 --> 0:10:54.560 Now put your seatbelts on and get ready for the ride. 0:10:55.000 --> 0:10:56.760 Put your seatbelt zone and get ready for the ride. 0:10:56.880 --> 0:10:57.160 Listen. 0:10:57.480 --> 0:10:59.960 There are going to be some challenges, but what challenges 0:11:00.000 --> 0:11:01.760 this becomes opportunity gets opportunity. 0:11:02.240 --> 0:11:04.360 But here's what I do know. We're the freaking New 0:11:04.440 --> 0:11:05.000 York jit so. 0:11:05.040 --> 0:11:07.920 Who haven't made the playoffs in fifteen years. Gland was 0:11:08.040 --> 0:11:11.160 vague when asked about whether Aaron Rodgers will return. John 0:11:11.200 --> 0:11:13.320 stashiell Er Bloomberg Sports, Kearny Meek. 0:11:15.640 --> 0:11:20.000 Coast to Coast on Bloomberg Radio nationwide on Serious Exam and. 0:11:20.120 --> 0:11:23.319 Around the world on Bloomberg dot Com and the Bloomberg 0:11:23.400 --> 0:11:24.000 Business app. 0:11:24.320 --> 0:11:25.880 This is Bloomberg Daybreak. 0:11:26.040 --> 0:11:26.520 Good morning. 0:11:26.600 --> 0:11:29.480 I'm Nathan Hager. It was the biggest single day drop 0:11:29.559 --> 0:11:31.680 for one American company and it is thanks to an 0:11:31.760 --> 0:11:36.319 AI startup in China. Nvidia plunged seventeen percent yesterday, wiping 0:11:36.320 --> 0:11:39.160 away five hundred and eighty nine billion dollars in market 0:11:39.280 --> 0:11:42.640 value on concern about deep seek and it's in competitive 0:11:42.720 --> 0:11:46.679 AI model with less advanced chips for more. Ark Investment 0:11:46.760 --> 0:11:50.000 Management CEO Kathy Wood joined Bloomberg Stephen, Carol and Lizzie 0:11:50.040 --> 0:11:52.800 burden in our London bureau. Let's listen to that conversation. 0:11:53.000 --> 0:11:55.160 Now, big question, you buying the dip. 0:11:56.480 --> 0:12:00.320 Well, we're fully invested and we're very comfortable being fully invaded. 0:12:01.200 --> 0:12:03.280 I think our confidence in the. 0:12:04.760 --> 0:12:08.640 Bull market broadening out has increased in the last few days. 0:12:09.559 --> 0:12:13.000 So sure the megacaps we think will continue to do well. 0:12:13.880 --> 0:12:20.360 Maybe in Vidia there are some questions about its exalted position. 0:12:20.440 --> 0:12:22.080 In the training chip market. 0:12:23.240 --> 0:12:26.760 We think inference is going to become more important with 0:12:26.880 --> 0:12:30.280 these new reasoning models, and that is a more competitive 0:12:30.320 --> 0:12:31.040 part of the market. 0:12:31.920 --> 0:12:35.520 But we think that what's happening here is the. 0:12:35.679 --> 0:12:38.040 Collapse in the cost of innovation. 0:12:39.000 --> 0:12:41.760 Deep seek is adding to it. It has been happening though. 0:12:41.840 --> 0:12:46.880 AI training costs have been dropping, led by Nvidia seventy 0:12:46.920 --> 0:12:51.880 five percent per year, and AI inference costs have been 0:12:51.960 --> 0:12:55.839 dropping eighty five to ninety percent per year. Deep seek 0:12:56.120 --> 0:12:59.880 is just putting those very rapid declines into. 0:12:59.720 --> 0:13:00.880 A bit of overdrive here. 0:13:01.360 --> 0:13:03.679 So I wonder, if you see in Vidia falling much further, 0:13:03.800 --> 0:13:05.319 is this an attractive price to be buying it? 0:13:05.400 --> 0:13:05.719 Do you think? 0:13:06.600 --> 0:13:11.839 Well, we own it in some of our portfolios. We 0:13:11.920 --> 0:13:14.480 are not buying the dip yet. 0:13:14.800 --> 0:13:17.719 We do want to learn more about deep seek and 0:13:17.960 --> 0:13:21.880 more about how the market or the demand for inference 0:13:22.720 --> 0:13:27.559 chips might outpace those for training chips. We think the 0:13:27.640 --> 0:13:31.439 whole area is going to be vibrant. We just think 0:13:31.520 --> 0:13:34.319 there might be a little bit more of an adjustment 0:13:34.520 --> 0:13:36.160 to this new reality. 0:13:36.080 --> 0:13:38.520 Where you say that what deep seek shows is kind 0:13:38.559 --> 0:13:41.559 of that you can do more with less kap X. 0:13:42.320 --> 0:13:44.959 Who do you think that's going to motivate in the 0:13:45.120 --> 0:13:47.679 US most as Donald Trump is kind of saying, who's 0:13:47.720 --> 0:13:48.679 going to be best. 0:13:48.600 --> 0:13:49.679 At doing more with less? 0:13:50.720 --> 0:13:57.120 Well, anyone using AI. We are focused on the productivity 0:13:57.160 --> 0:13:59.920 gains for knowledge workers, which are going to be mass 0:14:00.320 --> 0:14:03.480 that's the biggest impact of AI. But if we're looking 0:14:03.520 --> 0:14:08.720 at sectors and spaces generally where this acceleration and innovation 0:14:09.000 --> 0:14:14.240 is going to be meaningful, we think autonomous mobility, so robotaxis. 0:14:15.800 --> 0:14:18.280 We think that's going to scale from essentially nothing now 0:14:18.400 --> 0:14:22.360 to an eight to ten trillion dollar global opportunity including China. 0:14:23.040 --> 0:14:27.800 But the sleeper here is healthcare, and we're seeing the 0:14:27.960 --> 0:14:34.640 convergence of sequencing technologies, all kinds of sequencing technologies, artificial intelligence, 0:14:35.240 --> 0:14:38.960 and then gene editing technologies like Crisper cast nine. 0:14:39.720 --> 0:14:43.320 That combination we believe is going to cure disease. 0:14:43.520 --> 0:14:47.280 It's already curing disease, sickle cell disease and beta thlocemia. 0:14:47.720 --> 0:14:52.680 That's Chrisper therapeutics. But we think they're aiming now for 0:14:52.960 --> 0:14:57.240 type one and type two diabetes. That would be a 0:14:57.440 --> 0:15:01.120 category killer, you know, So think about that curing disease, 0:15:01.320 --> 0:15:07.960 AI helping us decode the secrets of life, death health. 0:15:08.640 --> 0:15:11.680 Those are two areas where regulation plays a big part. 0:15:11.960 --> 0:15:15.080 You've spoken about your optimism about deregulation under Donald Trump. 0:15:15.120 --> 0:15:16.920 Do you think those are two areas we should expect 0:15:16.960 --> 0:15:21.160 to see big deregulation about what technology can get involved in. 0:15:22.040 --> 0:15:25.560 Yes, I think in both safety first and I think 0:15:25.640 --> 0:15:29.560 anyone moving into this market or these markets would agree 0:15:29.600 --> 0:15:34.640 with that. So sensible regulation. But in the US, the 0:15:35.360 --> 0:15:40.240 robotaxi field is regulated by fifty states. We think that 0:15:40.400 --> 0:15:45.360 will change to one regulator, the federal government. After all, 0:15:45.520 --> 0:15:50.560 transportation does cross states, so that makes sense. In the 0:15:50.880 --> 0:15:56.760 healthcare realm, that is where the thicket of regulations has 0:15:57.000 --> 0:16:02.680 really strangled the industry. And even more than the outright regulations, 0:16:02.880 --> 0:16:07.840 it was the FTC, the Federal Trade Commission not allowing 0:16:08.400 --> 0:16:14.760 mergers and acquisitions and therefore not allowing strategic buyers, big 0:16:14.880 --> 0:16:22.960 biotech companies, not allowing them to buy the smaller companies, 0:16:23.440 --> 0:16:26.520 so that we had price discovery. Now we're going to 0:16:26.600 --> 0:16:30.400 see price discovery. How much are these companies that are 0:16:30.520 --> 0:16:36.360 curing disease worth to these large strategic buyers now and 0:16:36.520 --> 0:16:39.240 saying that I don't necessarily want our companies to be 0:16:39.360 --> 0:16:41.640 taken out. We think they have miles to go, but 0:16:41.800 --> 0:16:44.920 we do want price discovery back in the market. 0:16:45.120 --> 0:16:47.560 Where you talk about your excitement about autonomous vehicles. Of 0:16:47.600 --> 0:16:49.960 course your biggest holding is Tesla, I think yes, And 0:16:50.040 --> 0:16:53.240 we've callt elon Musk's first earnings call tomorrow since Trump's 0:16:53.280 --> 0:16:55.240 returned to the White House January. 0:16:55.440 --> 0:16:57.880 Typically a call that's a look ahead. What do you 0:16:57.920 --> 0:16:59.000 need to hear from Mosque? 0:17:00.040 --> 0:17:05.040 We need to hear a continuation of we're about to 0:17:05.240 --> 0:17:11.640 launch our autonomous driving system. I mean, in effect, they've 0:17:11.720 --> 0:17:14.760 launched it. I have a full self driving I know 0:17:14.840 --> 0:17:18.040 it's not allowed here in the UK or in Europe. 0:17:19.359 --> 0:17:24.760 But the improvements you feel safe, oh yes, yes, yes, yes, 0:17:25.480 --> 0:17:28.280 way more really has broken through a lot of barriers. 0:17:29.400 --> 0:17:32.840 I feel even though a Waymo vehicle is not safer 0:17:33.600 --> 0:17:36.800 than a human driven vehicle, it. 0:17:37.040 --> 0:17:38.439 Knows its roads. 0:17:38.680 --> 0:17:43.119 It's narrow roads, meaning there are narrow territories. 0:17:43.840 --> 0:17:46.680 I think Tesla is going to go national. That's going 0:17:46.760 --> 0:17:48.280 to be and we'll. 0:17:48.160 --> 0:17:51.960 Be able to do so because it has effectively seven. 0:17:51.800 --> 0:17:53.680 Million robots roaming the roads. 0:17:53.760 --> 0:17:55.600 Right now, I have two of them, a Y and 0:17:55.680 --> 0:17:59.080 A three, and they're learning all about Connecticut and Florida 0:17:59.200 --> 0:18:04.200 worlddes So it has a huge competitive advantage in terms 0:18:04.280 --> 0:18:08.760 of proprietary data that nobody else has about the roads, 0:18:09.160 --> 0:18:12.359 not only in the US, but in many places around 0:18:12.359 --> 0:18:12.720 the world. 0:18:13.119 --> 0:18:15.360 Do you worry that Elon Musk is taking on too much? 0:18:15.480 --> 0:18:17.320 If he's got his new job in the US government, 0:18:17.440 --> 0:18:21.359 he's got sharp developments coming in Tesla, lots going on 0:18:21.440 --> 0:18:23.880 with US other businesses as well. Is he spreading himself 0:18:23.920 --> 0:18:24.199 too thin? 0:18:24.840 --> 0:18:28.560 If you look at the way Elon Musk behaves as 0:18:28.600 --> 0:18:30.560 a CEO, he's a sharpshooter. 0:18:31.200 --> 0:18:35.400 He looks for pain points and he solves those right. 0:18:35.640 --> 0:18:40.040 And he's for example, right now, where was in twenty eighteen, 0:18:40.520 --> 0:18:44.040 where was the biggest pain point? It was manufacturing the 0:18:44.240 --> 0:18:49.399 Model three, Scaling the Model three. He slept famously on 0:18:49.560 --> 0:18:53.119 the factory floor. He's not doing that anymore. He's not 0:18:53.280 --> 0:18:56.720 on the factory floor now, it's all about autonomous. He 0:18:57.080 --> 0:19:01.880 is the first what we would call CEO who really 0:19:02.040 --> 0:19:07.640 understands the convergence among technologies taking place right now, really 0:19:07.840 --> 0:19:12.320 catalyzed by artificial intelligence each one of his businesses. And 0:19:12.440 --> 0:19:17.600 he also understands how critically important proprietary data is. And 0:19:17.720 --> 0:19:22.320 think about this, Each of those companies is generating proprietary 0:19:22.440 --> 0:19:24.560 data that no one else has. 0:19:24.720 --> 0:19:26.320 Well, maybe you should out to his plate. Should he 0:19:26.320 --> 0:19:28.320 buy us TikTok Ah? 0:19:29.320 --> 0:19:29.560 Yes? 0:19:29.680 --> 0:19:32.399 I mean, I know there have been rumors about that 0:19:32.680 --> 0:19:34.600 and about the government. 0:19:35.880 --> 0:19:38.600 Sharing half, and that's kind. 0:19:38.440 --> 0:19:41.600 Of anathema to the United States, you know, the government 0:19:41.680 --> 0:19:42.680 getting involved like this. 0:19:43.160 --> 0:19:44.639 I'd be surprised if that happens. 0:19:44.720 --> 0:19:48.320 But I will also say the Trump administration is full 0:19:48.359 --> 0:19:49.000 of surprises. 0:19:49.800 --> 0:19:51.560 It certainly is, and we're only a weekend to it. 0:19:51.840 --> 0:19:53.760 You're here with us in London and we're delighted to 0:19:53.800 --> 0:19:54.119 see you. 0:19:54.520 --> 0:19:55.520 What has you in London? 0:19:55.560 --> 0:19:57.920 What opportunities are you excited about when you come to 0:19:57.960 --> 0:19:59.920 the UK? Is this a good place to put your money? 0:20:01.200 --> 0:20:05.399 Well, we have launched three funds. Our Europe has launched 0:20:05.480 --> 0:20:06.240 three funds here. 0:20:07.200 --> 0:20:07.840 One is our. 0:20:07.760 --> 0:20:12.600 Flagship that is focused on all five innovation platforms, so robotics, 0:20:12.840 --> 0:20:20.720 energy storage, artificial intelligence, multiomic sequencing and blockchain technology. So 0:20:20.840 --> 0:20:25.360 that's the flagship AARKK a special one for Europe which 0:20:25.440 --> 0:20:29.760 we do not have in the US because of overlaps 0:20:29.840 --> 0:20:33.040 with other funds, but we have an AI and robotics 0:20:33.160 --> 0:20:40.720 fund and that is ARKI. We think this convergence of 0:20:41.160 --> 0:20:47.240 robotics and AI is going to lead to humanoid robots 0:20:47.440 --> 0:20:52.520 and not just millions of them, but perhaps billions of 0:20:52.640 --> 0:20:56.359 them longer term, which is going to be a key 0:20:56.800 --> 0:21:01.760 productivity driver in both the home right now, we're not 0:21:01.880 --> 0:21:06.400 paid for house cleaning, Let's get a robot. Let's pay 0:21:06.440 --> 0:21:10.679 a robot to do it. And in the manufacturing plants 0:21:10.800 --> 0:21:11.400 around the world. 0:21:11.560 --> 0:21:13.919 Kathy, the Prime Minister was in the building earlier. Kris Starmer, 0:21:14.000 --> 0:21:15.760 you're exactly the sort of person that he wants to 0:21:15.880 --> 0:21:18.520 meet because he wants investments going into those sorts of 0:21:18.600 --> 0:21:21.280 businesses in this country. Have you spoken to him, what 0:21:21.400 --> 0:21:23.080 sort of device would you be giving him if he's 0:21:23.080 --> 0:21:24.080 trying to grow the economy. 0:21:24.800 --> 0:21:28.520 Well, half the solution is understanding the problem and just 0:21:28.840 --> 0:21:33.440 making that statement suggests to me that he's saying, why 0:21:33.640 --> 0:21:37.080 hasn't this happened? And I also over the weekend heard 0:21:37.800 --> 0:21:40.679 one of the finance ministers, or maybe the Finance Minister 0:21:41.080 --> 0:21:43.800 say the same thing. This is a mantra, and I 0:21:43.920 --> 0:21:47.320 think it has been catalyzed by artificial intelligence as well. 0:21:47.640 --> 0:21:51.520 If you think about the UK, you produced two. 0:21:51.440 --> 0:21:55.240 Of the most important AI companies in the world, Deep Mind, 0:21:55.359 --> 0:22:01.960 which Alphabet now owns, an arm which off Bank primarily owns. 0:22:03.400 --> 0:22:05.600 By all rights, you should. 0:22:05.359 --> 0:22:10.760 Be developing a deep venture capital pool here, feeding startups 0:22:10.920 --> 0:22:17.080 and nourishing them and deepening your listed equity markets. And 0:22:17.240 --> 0:22:19.080 so I think that's what they're going to do, which 0:22:19.119 --> 0:22:22.240 is fantastic. It's fantastic for the UK. 0:22:22.520 --> 0:22:26.280