WEBVTT - Apple WWDC Recap, Musk and OpenAI 0:00:01.520 --> 0:00:05.200 From Mahard where Innovation of Money and Power Collie in 0:00:05.320 --> 0:00:06.800 Silicon Valley, NBN. 0:00:07.160 --> 0:00:11.160 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.600 --> 0:00:26.960 I'm Caroine Heidel, Bloomberg's world headquarters in New York, and 0:00:27.000 --> 0:00:27.960 Ludlow He's off. 0:00:28.240 --> 0:00:29.440 This is Bloomberg Technology. 0:00:29.600 --> 0:00:32.600 Coming up, will bring you the full recap from Apple's 0:00:32.640 --> 0:00:36.360 annual Developers Conference as shares rise to a record following 0:00:36.400 --> 0:00:37.200 the company's event. 0:00:37.800 --> 0:00:40.000 Plus will break down comments from Elon Muskers. 0:00:40.040 --> 0:00:42.800 He says he would ban Apple devices from his companies 0:00:43.120 --> 0:00:47.000 if open ai is integrated into the operating system and 0:00:47.200 --> 0:00:51.519 troubled French IT firm atos it picks a winner for 0:00:51.600 --> 0:00:54.520 its bailout. We'll discuss that and the state of French 0:00:54.600 --> 0:00:57.600 tech and so much more throughout this hour. First, let's 0:00:57.640 --> 0:00:59.720 check in on the French markets. Let's check in on 0:00:59.800 --> 0:01:02.200 the macro perspective. More broadly, look a little bit of 0:01:02.240 --> 0:01:05.080 anxiety as we run towards the federal reserve that CPI print, 0:01:05.240 --> 0:01:07.759 but more broadly managing to see tech once again on top. 0:01:07.800 --> 0:01:09.479 Thanks to Apple. Of course, We're up. 0:01:09.360 --> 0:01:11.440 Two tenser percent on the NASDAK the cap forty, though 0:01:11.440 --> 0:01:14.600 having a woe full time in France, political risk, some anxiety, 0:01:14.720 --> 0:01:18.720 some rumors swirling that perhaps even Macron could step down 0:01:18.720 --> 0:01:21.400 if indeed that legislative vote that he has just called 0:01:21.680 --> 0:01:24.880 doesn't go his way, but that has been suppressed and 0:01:24.920 --> 0:01:26.479 denied by people close to him. But it was still 0:01:26.520 --> 0:01:27.960 off by one and a quarter percent in France. We 0:01:28.080 --> 0:01:30.959 go to some interesting fundraising and news coming from France. 0:01:31.000 --> 0:01:33.360 A little bit later in the show, Crypto is under pressure, 0:01:33.360 --> 0:01:36.360 off by almost four percent. Interesting correlations. Basically, when bonds 0:01:36.360 --> 0:01:39.520 sell off, so does bitcoin, and bonds are selling off today, 0:01:39.600 --> 0:01:41.800 Crypto off by some four percent. As we head towards 0:01:41.840 --> 0:01:43.679 those macro events, move on and have a look at 0:01:43.720 --> 0:01:46.679 what's happening on individual movers, and I'm only singling out one. 0:01:46.880 --> 0:01:50.080 I'm looking at Apple rising to yet a new record high. 0:01:50.080 --> 0:01:52.760 We're now up more than five percent. I thought yesterday 0:01:52.800 --> 0:01:55.640 we were a little bit like un or inspired by 0:01:55.640 --> 0:02:00.080 some of the announcements coming from WWDC, but seemingly we 0:02:00.120 --> 0:02:00.920 are now thinking this. 0:02:00.960 --> 0:02:03.400 Will drive the purchases of new phones. 0:02:03.160 --> 0:02:05.760 That stick with IT shares as we hit this record. 0:02:05.960 --> 0:02:08.640 We want to delve into the AI announcements, some of 0:02:08.680 --> 0:02:11.320 it mixed, but one tech Titan has a pretty hot take, 0:02:11.600 --> 0:02:14.320 you know, Musk saying he'd ban Apple devices from his 0:02:14.400 --> 0:02:18.400 companies if open AI's artificial intelligence software is integrated as 0:02:18.400 --> 0:02:21.760 the operating system level, calling the tie up security risk. 0:02:22.040 --> 0:02:23.280 We want to get into the announcements. 0:02:23.280 --> 0:02:26.240 We want to get into Elon Musk's take, Bloomberg, Mark 0:02:26.240 --> 0:02:28.679 German here with the AI breakdown. Kert Wagner, of course, 0:02:28.720 --> 0:02:31.000 an author on all things Elon and Mark. 0:02:31.040 --> 0:02:34.600 I want to start with you because surmise the market reaction. 0:02:35.160 --> 0:02:37.720 You thought perhaps some of it was a bit lackluster, 0:02:37.800 --> 0:02:39.680 but the market seems be liking the fact that we. 0:02:39.639 --> 0:02:41.160 Might buy some new iPhones on this. 0:02:41.600 --> 0:02:44.280 I definitely don't think this is going to drive iphon 0:02:44.400 --> 0:02:48.040 sixteen sales this fall in any significant way. I do 0:02:48.120 --> 0:02:50.799 think that over time, this is going to seriously drive 0:02:50.880 --> 0:02:53.560 sales of follow up iterations of the iPhone, maybe the 0:02:53.600 --> 0:02:55.280 one after maybe the one after that, maybe the one 0:02:55.280 --> 0:02:56.120 after that, and. 0:02:56.120 --> 0:02:58.560 Well into the future. I do believe it's going to 0:02:58.680 --> 0:03:00.960 enable a set of new generation of. 0:03:00.919 --> 0:03:05.799 Apple devices, things like arglasses, home robots, enhanced air pods 0:03:05.880 --> 0:03:08.919 with AI, and cameras. So this really sets the stage 0:03:08.960 --> 0:03:11.840 for Apple's future. Now, the most important part here is 0:03:11.880 --> 0:03:14.200 Apple no longer has to worry about the risk of 0:03:14.200 --> 0:03:17.639 people switching away from the Apple ecosystem seeking a more 0:03:17.680 --> 0:03:22.440 aiified phone. Apple now has the same functionality that Samsung has, 0:03:22.680 --> 0:03:25.000 that Google has, that other players have in terms of 0:03:25.000 --> 0:03:28.799 deep AI integration into its devices. So I think from 0:03:28.800 --> 0:03:31.480 that standpoint, it's a positive and that's making the street 0:03:31.760 --> 0:03:34.560 quite happy. I think they're digesting. There was a lot 0:03:34.560 --> 0:03:37.240 of stuff on Monday at the Worldwide Developers Conference. I 0:03:37.240 --> 0:03:39.720 think they've been going through what the Apple announcements were 0:03:39.960 --> 0:03:43.080 and they see how comprehensive the set of tools that 0:03:43.120 --> 0:03:47.280 Apple's offering here with a quintessential Apple spin with its 0:03:47.280 --> 0:03:50.160 privacy standpoint and very deep integration. 0:03:51.040 --> 0:03:55.080 Let's talk about privacy and integration KAT, because privacy has 0:03:55.120 --> 0:03:58.160 been called into question by one Elon Musk because of 0:03:58.200 --> 0:04:02.000 the integration with chat ChiPT and can you just keep 0:04:02.080 --> 0:04:04.440 us up to speed with what Elon Musk is accusing here? 0:04:04.960 --> 0:04:07.920 Yeah, Well, Elon is basically saying that if chat GPT 0:04:08.160 --> 0:04:11.040 is infused at the operating system level of these phones, 0:04:11.120 --> 0:04:13.360 that you know, it would have access to all of 0:04:13.400 --> 0:04:15.320 the data on the phone, which would go to Apple 0:04:15.360 --> 0:04:17.760 and then go to Open AI. What you have to remember, 0:04:17.800 --> 0:04:21.280 of course, is that Elon has a lot of incentive 0:04:21.400 --> 0:04:25.240 to you know, seed this idea that this is an 0:04:25.360 --> 0:04:29.920 unsafe in a privacy issue because he is building a 0:04:30.000 --> 0:04:34.480 direct competitor to chat GPT with his you know, Xai 0:04:34.600 --> 0:04:37.800 business that's building grock its own chat pots. So I 0:04:37.839 --> 0:04:39.360 do think that this is the kind of thing that 0:04:39.400 --> 0:04:42.560 he is you know, incentivized to do, to to kind 0:04:42.560 --> 0:04:45.760 of pour cold water on this partnership, to you know, 0:04:45.800 --> 0:04:48.800 make people question or doubt whether or not this is 0:04:48.880 --> 0:04:52.200 done above board, because he stands the benefit here with 0:04:52.320 --> 0:04:55.320 his own business and his own companies building a rival product. 0:04:55.640 --> 0:04:57.880 Well, Mark, apart from going to Tim Cook with this, 0:04:58.040 --> 0:04:59.760 we go to you because I don't know anyone who 0:04:59.800 --> 0:05:01.640 can out square us up on whether this is a 0:05:01.680 --> 0:05:04.279 key privacy risk better than you could. Mark. What do 0:05:04.320 --> 0:05:06.320 you make of some of the accusations and whether or 0:05:06.320 --> 0:05:09.480 not this integration would open up any privacy concerns. 0:05:09.720 --> 0:05:11.960 Well, first of all, I completely agree with Kurt right. 0:05:12.240 --> 0:05:14.839 Elon Moss doesn't have the best of relationships with open 0:05:14.839 --> 0:05:17.200 Ai and Tim Altman, for one, doesn't have the best 0:05:17.240 --> 0:05:18.880 relationship with Apple and Tim Cook. 0:05:18.960 --> 0:05:21.880 He's not a fan of their app store, policies. He's 0:05:21.920 --> 0:05:23.520 building grock. 0:05:23.360 --> 0:05:26.440 Right through his own XAI company, right it's integrated for 0:05:26.520 --> 0:05:29.400 some users into the exapp right now, so he has 0:05:29.400 --> 0:05:31.479 an incentive to sort of pour cold water and this 0:05:31.560 --> 0:05:34.720 idea and raise skepticism. On the other hand, I do 0:05:34.800 --> 0:05:37.840 believe there are some privacy questions here. I don't think 0:05:37.839 --> 0:05:41.000 there's many questions about Apple's in house AI large language models. 0:05:41.040 --> 0:05:44.479 I think they showed in great in great ways how. 0:05:44.320 --> 0:05:47.760 Private they're on device AI is their own iCloud based 0:05:47.800 --> 0:05:51.000 AI protection. But once you start working with a third party, 0:05:51.080 --> 0:05:54.240 you're talking about servers that are powered by Microsoft Azure, 0:05:54.560 --> 0:05:58.440 you're talking about technology that's powered by OpenAI. There isn't 0:05:58.600 --> 0:06:01.560 a clearly explained way how Apple can verify the privacy 0:06:01.640 --> 0:06:04.840 of your data that's input into chat GPT. In fact, 0:06:05.200 --> 0:06:07.840 when you start moving from Apple's AI models on the 0:06:07.839 --> 0:06:10.480 phone to the chat GPT models the phone, makes it 0:06:10.600 --> 0:06:12.960 very clear that you're now in open AI territory. 0:06:13.200 --> 0:06:14.800 Right, So, I think the biggest thing you're. 0:06:14.640 --> 0:06:17.040 Doing right now is warning consumers that your data is 0:06:17.040 --> 0:06:18.839 being input into a third party provider. 0:06:19.160 --> 0:06:22.320 But they hadn't showed a way to verify the privacy. 0:06:21.839 --> 0:06:24.919 Of that information However, Apple and OpenAI have said that 0:06:25.000 --> 0:06:27.280 they are keeping that data that's input from the iPhone 0:06:27.360 --> 0:06:30.880 especially private. They're not logging it, they're not creating data profiles. 0:06:31.160 --> 0:06:33.240 But it is really the onus really is on open 0:06:33.240 --> 0:06:36.120 Ai to verify that, and Apple to keep on top 0:06:36.160 --> 0:06:38.440 of open Ai to make sure that they don't breach 0:06:38.480 --> 0:06:41.440 any of those terms on the privacy side of that partnership, 0:06:41.600 --> 0:06:42.800 which I honestly think they'll do. 0:06:43.720 --> 0:06:43.960 Cut. 0:06:44.240 --> 0:06:47.880 Maybe therefore there is some reason to the shouting that's 0:06:47.880 --> 0:06:48.960 going on on social media. 0:06:49.000 --> 0:06:50.480 Buy it on must but also cut. We're a bit 0:06:50.520 --> 0:06:53.040 immune to it. We've had it on musks. 0:06:53.080 --> 0:06:57.159 Throw some Bob comments via to Tim Cook in the past, 0:06:57.200 --> 0:06:59.200 of course, about perhaps the way in which the app 0:06:59.200 --> 0:07:01.640 store is run. Know that he's actually suing open Ai. 0:07:02.160 --> 0:07:04.000 How likely do you think it is that he would 0:07:04.000 --> 0:07:06.640 pad Apple iPhones across these six companies. 0:07:07.080 --> 0:07:09.880 I mean, this is someone who, as we know Caroline 0:07:10.080 --> 0:07:13.320 is not afraid of controversy and conflict and picking fights 0:07:13.360 --> 0:07:16.680 with other very rich and powerful people, Tim Cook being one, 0:07:16.760 --> 0:07:19.320 Sam Altman, Mark Zuckerberg, the list goes on and on. 0:07:19.400 --> 0:07:21.440 So I do think it's the kind of thing that 0:07:21.680 --> 0:07:23.760 you know he might do to try to prove a 0:07:23.800 --> 0:07:26.760 point or to make a point. And you know, for him, 0:07:26.800 --> 0:07:29.960 he's now even sort of hinting at, oh, maybe maybe 0:07:30.000 --> 0:07:33.320 he would build his own phone someday, right, like maybe 0:07:33.320 --> 0:07:35.160 he would partner with someone for a phone. I think 0:07:35.200 --> 0:07:37.800 this is very Elon. It's on brand for him, right. 0:07:37.880 --> 0:07:40.760 He sort of picks these fights. He does it very publicly. 0:07:40.840 --> 0:07:45.040 He makes these grand claims or aspirations, and then you know, 0:07:45.040 --> 0:07:46.840 when push comes to show, we'll see what he does. 0:07:46.880 --> 0:07:48.720 But I don't think it's the kind of thing that 0:07:49.080 --> 0:07:51.360 you know, for him, it's not a huge skin off 0:07:51.360 --> 0:07:53.480 his back, right if it makes the point he's trying 0:07:53.480 --> 0:07:55.480 to make. And I think, as Mark and I have 0:07:55.600 --> 0:07:58.280 pointed out, that's the goal here, is to sort of 0:07:58.520 --> 0:08:01.320 cast doubt on this whole partnership, to cast down on 0:08:01.360 --> 0:08:04.000 these other companies that are considered rivals of his, and 0:08:04.040 --> 0:08:06.440 to do so in a very public public way. 0:08:07.200 --> 0:08:10.160 Well, he's got the public's attention for now, so too 0:08:10.280 --> 0:08:13.600 does Apple. From WWDC, Mark German, great round, Loock Kirk 0:08:13.640 --> 0:08:18.440 Wagner with all the insights on Elon's ink, we appreciate it. Meanwhile, 0:08:18.440 --> 0:08:20.120 we've just got some breaking news. We'll keep you up 0:08:20.160 --> 0:08:23.800 to date with what is currently happening. From a legal perspective, 0:08:23.880 --> 0:08:26.360 Hunter Biden's jury tells the court that it hasn't eed 0:08:26.400 --> 0:08:29.960 reached a verdict in the gun case regarding Hunter Biden. 0:08:30.000 --> 0:08:31.960 We will bring you the updates as and when we 0:08:32.040 --> 0:08:34.720 receive them. For now, though, we stick to our knitting, 0:08:34.760 --> 0:08:35.600 which is technology. 0:08:35.640 --> 0:08:37.360 On this show. Navilla popol is with US. 0:08:37.559 --> 0:08:40.360 Senior research director with IDC to get her read on 0:08:40.400 --> 0:08:43.960 yesterday's anounments at WWDC. And I think what the question 0:08:44.040 --> 0:08:46.880 for me in many ways is why the market is 0:08:46.960 --> 0:08:49.840 loving it so much when initially we thought there's no 0:08:49.920 --> 0:08:50.880 wild factor here. 0:08:51.360 --> 0:08:54.520 Hi, Calyne, thanks for having me. You know you're so 0:08:54.720 --> 0:08:57.319 right because I've been like absorbing all this information as 0:08:57.360 --> 0:08:58.880 I'm sure everyone else here. 0:08:59.280 --> 0:09:01.160 I think it was really big, is you know? 0:09:01.280 --> 0:09:04.040 Yesterday there might have been a lackluster response because, like 0:09:04.080 --> 0:09:07.120 you said, there wasn't any brand new feature or use 0:09:07.200 --> 0:09:09.160 case that we haven't seen yet right from the other 0:09:09.200 --> 0:09:11.959 platforms or the other players in the market. But what 0:09:12.120 --> 0:09:14.320 to me really stood I No, I think what's catching on. 0:09:14.760 --> 0:09:17.040 You know, the wave here is this is a big, 0:09:17.280 --> 0:09:20.760 big move. It's a bold, you know, step forward for Apple. 0:09:20.920 --> 0:09:23.480 They Yes, sure they were you know, behind the curve 0:09:23.520 --> 0:09:25.160 a little bit. But I think the way they've come 0:09:25.200 --> 0:09:28.079 out right now, they've told you know, what Apple does best, right, 0:09:28.440 --> 0:09:32.360 They've told a really compelling consumer story most consumers aren't 0:09:32.400 --> 0:09:34.800 really aware about, you know, what's generated AI and what 0:09:34.840 --> 0:09:37.600 it can do. What I think Apple did that, you know, 0:09:38.120 --> 0:09:39.920 was his unius on their part is the way they 0:09:39.960 --> 0:09:44.000 integrated it into the user experience, which is of course 0:09:44.040 --> 0:09:47.520 central to Apple's you know history, and now it's always 0:09:47.520 --> 0:09:50.000 been about the user experience, and it's about how bring 0:09:50.080 --> 0:09:53.880 me an AI on device with everything that we do 0:09:53.960 --> 0:09:56.559 right and everyday apps that we have without having to 0:09:56.720 --> 0:09:59.319 go somewhere click on a different app or chatbot. It's 0:09:59.360 --> 0:10:02.680 just everything integrated. And then of course there's strong message 0:10:02.720 --> 0:10:05.360 on you know, if you do it with Apple Intelligence, 0:10:05.920 --> 0:10:07.560 it's going to be private and secure. 0:10:07.760 --> 0:10:11.199 But that privacy and security issue, do you think that 0:10:11.200 --> 0:10:12.959 that's in any way You're going to be questioned by 0:10:12.960 --> 0:10:14.920 what Musk is currently saying. Do you think it might 0:10:14.920 --> 0:10:17.199 put off people going for the iPhone sixteen? 0:10:18.120 --> 0:10:21.400 You know, you know, Elon Musk will be Elon Musk right, 0:10:21.520 --> 0:10:24.000 like you just said in the earlier segment, there's definitely 0:10:24.080 --> 0:10:26.679 going to be a lot of talk going that it's 0:10:26.679 --> 0:10:28.600 going to be around this, but I think Apple's messaging 0:10:28.679 --> 0:10:31.640 was clear right that if you using AI, the way 0:10:31.679 --> 0:10:34.240 they have shown this and everything that they've shown yesterday 0:10:34.360 --> 0:10:37.240 was it's going to give you a personalized, customized experience. 0:10:37.280 --> 0:10:40.600 It's going to keep most of things on device. It's 0:10:40.600 --> 0:10:43.079 only when you because that's where they're not using. I 0:10:43.080 --> 0:10:44.720 think there's a lot of confusion, and I was like 0:10:44.760 --> 0:10:47.360 looking into this myself earlier this morning. We have our 0:10:47.440 --> 0:10:50.720 team on ground at Apple Park to verify, you know, 0:10:50.760 --> 0:10:53.160 what is it the models that are being used in 0:10:53.200 --> 0:10:55.440 all of Apple Intelligence and all the features that we 0:10:55.480 --> 0:10:58.120 saw right, what are the different whether it's gen mojis, 0:10:58.120 --> 0:11:02.560 whether it's the summarization, description, search, everything that's on device, 0:11:02.640 --> 0:11:06.320 it's based on Apple's own AI models. It's only the chat, 0:11:06.400 --> 0:11:09.640 GPT and open AI comes in when you're trying to 0:11:09.720 --> 0:11:12.000 prompt Siri for a question that serie can't use the 0:11:12.040 --> 0:11:15.240 information that's on your device to answer, or Apple's own 0:11:15.280 --> 0:11:18.080 AI model, and that's the opt in feature which you're 0:11:18.120 --> 0:11:22.400 gonna give you user or serie access or you know, 0:11:22.480 --> 0:11:25.000 give your permission to access chat GBT. 0:11:25.320 --> 0:11:25.880 So I think the. 0:11:25.840 --> 0:11:28.800 Way they have messaged it is pretty clear that everything 0:11:28.840 --> 0:11:31.120 that you do on the Apple device will be secure. 0:11:31.320 --> 0:11:34.079 And even when Apple or the device can't use its 0:11:34.080 --> 0:11:36.679 own you know, on device AI model, it's going to 0:11:36.800 --> 0:11:42.080 use Apples Secure cloud uh to you know, personalized clouds 0:11:42.080 --> 0:11:46.120 to to be able to run those more complicated AI models. 0:11:46.160 --> 0:11:47.760 But Chat g I think. 0:11:47.600 --> 0:11:48.120 It's it was. 0:11:48.200 --> 0:11:50.559 It was very segmented in a different way that only 0:11:50.679 --> 0:11:52.800 you know used during serie prompts NEVLA. 0:11:53.080 --> 0:11:55.480 What's interesting is this is a global company with a 0:11:55.480 --> 0:11:57.760 lot of focus on China, and I'm interested is to 0:11:57.840 --> 0:12:01.240 longer term, you know that going to perhaps be more 0:12:01.320 --> 0:12:04.600 agnostic about which large language model they use, adopt or 0:12:04.600 --> 0:12:05.640 indeed build their own. 0:12:06.160 --> 0:12:08.600 But can this go live in China? Will it stimulate 0:12:08.640 --> 0:12:09.439 demand in China? 0:12:10.040 --> 0:12:11.720 So the key you know, and again like we were 0:12:11.760 --> 0:12:14.080 talking to our China team this morning, because Chat GBT 0:12:14.200 --> 0:12:17.160 isn't available in China right now. With this iteration, you know, 0:12:17.240 --> 0:12:20.840 it's not going to benefit the upgrade cycle in China 0:12:21.000 --> 0:12:24.160 with the with the device this year. However, the fact 0:12:24.160 --> 0:12:26.760 that Apple's in AI, the fact that Apple is doing 0:12:26.800 --> 0:12:30.079 these things, it's going to benefit the consumer perception which 0:12:30.240 --> 0:12:32.600 was taking you know, a negative turn, especially in China 0:12:32.640 --> 0:12:36.840 because consumers are you know, placing AI as a driving 0:12:36.880 --> 0:12:40.000 factor in their device is in terms of purchasing. So 0:12:40.440 --> 0:12:43.560 I think this this year, the upgrade cycle will probably 0:12:43.600 --> 0:12:46.080 be more impacted because as they said, it's going to 0:12:46.080 --> 0:12:48.200 be available in the fall and only in supporting the 0:12:48.240 --> 0:12:52.079 English language. So countries like US, UK or any consumers 0:12:52.120 --> 0:12:55.120 that are primarily English driven, it's going to drive because 0:12:55.120 --> 0:12:57.200 there's plenty of you know users out there with iPhone 0:12:57.240 --> 0:13:00.839 eleven and iPhone twelve. Because the average first cycle we're 0:13:00.840 --> 0:13:03.080 still looking at about three to four years, right, so there's 0:13:03.120 --> 0:13:05.600 any of those users that will you know, want these 0:13:05.640 --> 0:13:07.760 new devices, even if it's just English support. 0:13:08.360 --> 0:13:09.640 I'm our English speaking. 0:13:09.360 --> 0:13:12.400 User, Nobela keeping it global for us. We thank you 0:13:12.480 --> 0:13:12.880 so much. 0:13:13.200 --> 0:13:25.760 Nombilla Popel, thank you, Senior research director with IDC. French 0:13:25.800 --> 0:13:28.600 AI startup misrab It's raised six hundred and forty four 0:13:28.600 --> 0:13:31.440 million dollars in a new funding round that now values 0:13:31.480 --> 0:13:34.000 the company at close to six billion euros. The round, 0:13:34.080 --> 0:13:36.280 led by Bench Capital Firm and General Catalyst, give us 0:13:36.280 --> 0:13:39.160 a company additional resources to take on bigger global players 0:13:39.200 --> 0:13:40.960 such as of course open AI here in the US, 0:13:41.120 --> 0:13:44.439 mister Roll is France's prized AI champion. It's attracted more 0:13:44.480 --> 0:13:48.480 than one billion euros in investment in this last year alone. Meanwhile, 0:13:48.600 --> 0:13:51.040 there's a less prize French company right now. 0:13:51.160 --> 0:13:53.199 Oh, indeed, we do have some breaking news. 0:13:53.040 --> 0:13:55.240 Coming from the US, So before we head back out 0:13:55.240 --> 0:13:56.960 to France, I just want to have a look that 0:13:57.040 --> 0:14:00.760 Hunter Biden hasn't even convicted of gun charger by a 0:14:00.840 --> 0:14:04.640 jury in a Delaware trial. The jury took three hours 0:14:04.679 --> 0:14:07.400 to reach a verdict against the President's son, and Hunter 0:14:07.440 --> 0:14:11.720 Biden still faces a separate tax crime trial in California. 0:14:12.200 --> 0:14:14.320 We now want to go out to Katie Lyons, who 0:14:14.320 --> 0:14:16.480 has been standing by for us in Washington, and Kayley. 0:14:16.880 --> 0:14:19.400 The impact of this could be significant. 0:14:19.400 --> 0:14:22.280 Caroline Hunter Biden here found guilty of all three counts 0:14:22.320 --> 0:14:24.360 with which he was charged. This is the first time 0:14:24.440 --> 0:14:27.440 in history that a child of a sitting president has 0:14:27.480 --> 0:14:30.200 been convicted in federal court. Of course, this all stems 0:14:30.200 --> 0:14:32.640 from his purchase of a gun in twenty eighteen when 0:14:32.640 --> 0:14:35.440 he was addicted, according to prosecutors, to crack cocaine. And 0:14:35.440 --> 0:14:39.320 this jury has indeed agreed with the prosecution, finding him 0:14:39.360 --> 0:14:42.120 guilty of these three crimes, which he will be sentenced 0:14:42.120 --> 0:14:44.120 for not today but in a number of weeks. It 0:14:44.120 --> 0:14:47.840 potentially carries a maximum sentence of twenty five years in prison, 0:14:47.880 --> 0:14:50.640 although it's unlikely that maximum sentence would be given for 0:14:50.760 --> 0:14:53.600 a first time offender. But obviously this has massive both 0:14:53.640 --> 0:14:57.520 personal and political implications for the incumbent president. Of course, 0:14:57.680 --> 0:14:59.960 this is the son of Joe Biden we are talking about, 0:15:00.120 --> 0:15:04.000 could potentially bring political ramification to him as well, in 0:15:04.040 --> 0:15:06.960 addition to a great deal of personal difficulty. We have 0:15:07.040 --> 0:15:10.120 heard from President Biden affirmed just days ago that he 0:15:10.160 --> 0:15:13.080 would not intervene and pardon his son if he was 0:15:13.120 --> 0:15:16.200 indeed found guilty as he has been today. There could 0:15:16.280 --> 0:15:19.680 potentially be some political upside here in that This, of course, 0:15:19.720 --> 0:15:22.240 follows just less than two weeks ago Donald Trump being 0:15:22.240 --> 0:15:24.280 found guilty in the court in New York of thirty 0:15:24.280 --> 0:15:27.360 four felony counts and allegations from Trump and other Republicans 0:15:27.360 --> 0:15:30.440 that the justice system has been weaponized against Donald Trump. 0:15:30.480 --> 0:15:32.840 But it's the same justice system that has now found 0:15:33.240 --> 0:15:36.480 Hunter Biden guilty of a number of crimes, so potentially 0:15:36.520 --> 0:15:38.840 it throws some cold water on that argument. Still, though 0:15:39.120 --> 0:15:43.880 it does shine uncomfortable spotlight on the president's family. And 0:15:44.120 --> 0:15:47.240 this also is just one case in which Hunter Biden 0:15:47.400 --> 0:15:49.960 had been charged with crimes. He does face a separate 0:15:49.960 --> 0:15:52.120 trial in September on tax crimes. 0:15:52.120 --> 0:15:56.160 Caroline, Yes, exactly that one in California. Can you give 0:15:56.240 --> 0:15:59.840 us a breakdown of what next? Then, Kaylee posts this verdict. 0:16:00.200 --> 0:16:02.960 Be awaiting sentencing, Caroline, is really the question here? As 0:16:02.960 --> 0:16:05.280 I mentioned, twenty five years is the maximum. Two of 0:16:05.320 --> 0:16:08.640 these gun charges carries a maximum sentence of ten years each, 0:16:08.720 --> 0:16:11.360 the third a maximum sentence of five years. But this 0:16:11.480 --> 0:16:13.680 is the first time that Biden has a Hunter Biden 0:16:13.720 --> 0:16:15.520 that is, has been convicted of a crime, so that 0:16:15.560 --> 0:16:19.080 could bring potentially more leniency, But really will be looking 0:16:19.480 --> 0:16:23.440 to see what ultimately the judge decides is it will 0:16:23.680 --> 0:16:26.480 be up to that one individual in terms of the sentencing. 0:16:26.520 --> 0:16:28.680 Will also be looking to see whether there is an 0:16:28.680 --> 0:16:30.720 appeal on the part of the defense and whether or 0:16:30.760 --> 0:16:33.240 not they then look ahead to that trial that is 0:16:33.280 --> 0:16:35.640 set to happen in September. If there is an appellate 0:16:35.680 --> 0:16:38.200 process still paying out in this case, could they successfully 0:16:38.720 --> 0:16:41.920 delay that trial potentially though they have not yet had 0:16:42.040 --> 0:16:44.440 success in doing so, And It's worth keeping in mind 0:16:44.440 --> 0:16:47.479 that September tax trial he will be facing in California 0:16:47.520 --> 0:16:51.000 brings us ever closer to the presidential election in which 0:16:51.520 --> 0:16:54.520 Joe Biden, his father, is trying to seek a re 0:16:54.640 --> 0:16:57.240 election for a second term, and that timing potentially could 0:16:57.240 --> 0:17:00.440 add even greater political difficulty than what we're seeing here 0:17:00.440 --> 0:17:02.880 today with the conviction of the president's son the first 0:17:02.880 --> 0:17:05.480 time in history. Again, Caroline, that this has happened to. 0:17:05.400 --> 0:17:08.800 The child of a sitting president, and as he said, already, 0:17:08.960 --> 0:17:11.760 President Biden has said he would not pardon. But I'm 0:17:11.760 --> 0:17:13.960 interested as to whether we will hear from him, if 0:17:13.960 --> 0:17:16.119 there's any idea as to whether he will speak on 0:17:16.160 --> 0:17:16.440 the matter. 0:17:16.960 --> 0:17:19.640 Well, he does have a scheduled speaking engagement today, He'll 0:17:19.640 --> 0:17:22.640 actually be speaking at a gun safety event here in Washington, 0:17:22.640 --> 0:17:25.399 and he's set to travel to the G seven in Italy. 0:17:25.440 --> 0:17:28.960 This is where the personal and the presidential duty potentially 0:17:28.960 --> 0:17:32.040 come into conflict, Caroline is obviously this is likely a 0:17:32.119 --> 0:17:34.680 very difficult day for the Biden family. We will see 0:17:34.720 --> 0:17:37.600 if he makes any statement on this before departing to Italy, 0:17:37.640 --> 0:17:39.480 but when he does so, attends the G seven that 0:17:39.520 --> 0:17:42.080 will be carrying out the duties of the presidency, trying 0:17:42.080 --> 0:17:45.040 to focus on geopolitics, foreign policy, all of the other 0:17:45.119 --> 0:17:48.080 responsibilities of this office, while also having to deal with 0:17:48.080 --> 0:17:51.600 the difficulty of having your son the only living person 0:17:51.720 --> 0:17:54.040 from the car crash that killed his first wife and 0:17:54.160 --> 0:17:57.560 daughter many years ago. And of course, Bobiden, who had 0:17:57.560 --> 0:18:01.119 survived that crash, died of cancer back in twenty fifteen, 0:18:01.119 --> 0:18:03.600 and that is when many of Hunter Biden's addiction problems 0:18:03.760 --> 0:18:05.800 really began, and that really was what was at the 0:18:05.800 --> 0:18:08.040 heart of this case, Caroline. This is a story of 0:18:08.040 --> 0:18:10.600 someone who was struggling with an addiction. This was very 0:18:10.640 --> 0:18:14.760 painful as we saw ex girlfriends, ex wives, even Naomi Biden, 0:18:14.840 --> 0:18:18.720 hunter Biden's daughter, testifying throughout this trial about the personal 0:18:18.760 --> 0:18:21.880 difficulty and what he was grappling with over the course 0:18:21.920 --> 0:18:24.600 of those years that he was an addict, And obviously 0:18:24.640 --> 0:18:27.760 just shines a very uncomfortable spotlight on the first family. 0:18:28.640 --> 0:18:32.720 Very personal, Kayleie, but very political in nature. And I 0:18:32.760 --> 0:18:36.440 therefore wonder what impact you think it will have longer 0:18:36.560 --> 0:18:38.040 term as we enter the election. 0:18:38.520 --> 0:18:40.760 It's going to be hard to tell immediately, Caroline, as 0:18:40.800 --> 0:18:42.400 it has been hard to tell just in the last 0:18:42.400 --> 0:18:44.800 few weeks what the real impact of Donald Trump's own 0:18:45.200 --> 0:18:47.680 felony conviction has been, as we haven't seen any great 0:18:47.720 --> 0:18:50.119 shift in pulling thus far, so we'll see if it 0:18:50.160 --> 0:18:52.320 actually has a material impact on the way that Joe 0:18:52.359 --> 0:18:54.680 Biden is pulling. What I would point out here is 0:18:54.720 --> 0:18:57.200 there is a very important distinction. What we are talking 0:18:57.200 --> 0:18:59.840 about in this case is a conviction of the sun 0:19:00.080 --> 0:19:02.480 the president, not someone who has held the office himself 0:19:02.720 --> 0:19:06.080 or seeking to be president. That is different than Donald Trump, 0:19:06.080 --> 0:19:08.320 who not only is a former president of the United States, 0:19:08.320 --> 0:19:11.840