Speaker 1: From Mahard where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroine Heidel, Bloomberg's world headquarters in New York, and
Speaker 3: Ludlow He's off.
Speaker 4: This is Bloomberg Technology.
Speaker 3: Coming up, will bring you the full recap from Apple's
Speaker 3: annual Developers Conference as shares rise to a record following
Speaker 3: the company's event.
Speaker 4: Plus will break down comments from Elon Muskers.
Speaker 3: He says he would ban Apple devices from his companies
Speaker 3: if open ai is integrated into the operating system and
Speaker 3: troubled French IT firm atos it picks a winner for
Speaker 3: its bailout. We'll discuss that and the state of French
Speaker 3: tech and so much more throughout this hour. First, let's
Speaker 3: check in on the French markets. Let's check in on
Speaker 3: the macro perspective. More broadly, look a little bit of
Speaker 3: anxiety as we run towards the federal reserve that CPI print,
Speaker 3: but more broadly managing to see tech once again on top.
Speaker 4: Thanks to Apple. Of course, We're up.
Speaker 3: Two tenser percent on the NASDAK the cap forty, though
Speaker 3: having a woe full time in France, political risk, some anxiety,
Speaker 3: some rumors swirling that perhaps even Macron could step down
Speaker 3: if indeed that legislative vote that he has just called
Speaker 3: doesn't go his way, but that has been suppressed and
Speaker 3: denied by people close to him. But it was still
Speaker 3: off by one and a quarter percent in France. We
Speaker 3: go to some interesting fundraising and news coming from France.
Speaker 3: A little bit later in the show, Crypto is under pressure,
Speaker 3: off by almost four percent. Interesting correlations. Basically, when bonds
Speaker 3: sell off, so does bitcoin, and bonds are selling off today,
Speaker 3: Crypto off by some four percent. As we head towards
Speaker 3: those macro events, move on and have a look at
Speaker 3: what's happening on individual movers, and I'm only singling out one.
Speaker 3: I'm looking at Apple rising to yet a new record high.
Speaker 3: We're now up more than five percent. I thought yesterday
Speaker 3: we were a little bit like un or inspired by
Speaker 3: some of the announcements coming from WWDC, but seemingly we
Speaker 3: are now thinking this.
Speaker 4: Will drive the purchases of new phones.
Speaker 3: That stick with IT shares as we hit this record.
Speaker 3: We want to delve into the AI announcements, some of
Speaker 3: it mixed, but one tech Titan has a pretty hot take,
Speaker 3: you know, Musk saying he'd ban Apple devices from his
Speaker 3: companies if open AI's artificial intelligence software is integrated as
Speaker 3: the operating system level, calling the tie up security risk.
Speaker 4: We want to get into the announcements.
Speaker 3: We want to get into Elon Musk's take, Bloomberg, Mark
Speaker 3: German here with the AI breakdown. Kert Wagner, of course,
Speaker 3: an author on all things Elon and Mark.
Speaker 4: I want to start with you because surmise the market reaction.
Speaker 3: You thought perhaps some of it was a bit lackluster,
Speaker 3: but the market seems be liking the fact that we.
Speaker 4: Might buy some new iPhones on this.
Speaker 5: I definitely don't think this is going to drive iphon
Speaker 5: sixteen sales this fall in any significant way. I do
Speaker 5: think that over time, this is going to seriously drive
Speaker 5: sales of follow up iterations of the iPhone, maybe the
Speaker 5: one after maybe the one after that, maybe the one
Speaker 5: after that, and.
Speaker 6: Well into the future. I do believe it's going to
Speaker 6: enable a set of new generation of.
Speaker 5: Apple devices, things like arglasses, home robots, enhanced air pods
Speaker 5: with AI, and cameras. So this really sets the stage
Speaker 5: for Apple's future. Now, the most important part here is
Speaker 5: Apple no longer has to worry about the risk of
Speaker 5: people switching away from the Apple ecosystem seeking a more
Speaker 5: aiified phone. Apple now has the same functionality that Samsung has,
Speaker 5: that Google has, that other players have in terms of
Speaker 5: deep AI integration into its devices. So I think from
Speaker 5: that standpoint, it's a positive and that's making the street
Speaker 5: quite happy. I think they're digesting. There was a lot
Speaker 5: of stuff on Monday at the Worldwide Developers Conference. I
Speaker 5: think they've been going through what the Apple announcements were
Speaker 5: and they see how comprehensive the set of tools that
Speaker 5: Apple's offering here with a quintessential Apple spin with its
Speaker 5: privacy standpoint and very deep integration.
Speaker 3: Let's talk about privacy and integration KAT, because privacy has
Speaker 3: been called into question by one Elon Musk because of
Speaker 3: the integration with chat ChiPT and can you just keep
Speaker 3: us up to speed with what Elon Musk is accusing here?
Speaker 7: Yeah, Well, Elon is basically saying that if chat GPT
Speaker 7: is infused at the operating system level of these phones,
Speaker 7: that you know, it would have access to all of
Speaker 7: the data on the phone, which would go to Apple
Speaker 7: and then go to Open AI. What you have to remember,
Speaker 7: of course, is that Elon has a lot of incentive
Speaker 7: to you know, seed this idea that this is an
Speaker 7: unsafe in a privacy issue because he is building a
Speaker 7: direct competitor to chat GPT with his you know, Xai
Speaker 7: business that's building grock its own chat pots. So I
Speaker 7: do think that this is the kind of thing that
Speaker 7: he is you know, incentivized to do, to to kind
Speaker 7: of pour cold water on this partnership, to you know,
Speaker 7: make people question or doubt whether or not this is
Speaker 7: done above board, because he stands the benefit here with
Speaker 7: his own business and his own companies building a rival product.
Speaker 3: Well, Mark, apart from going to Tim Cook with this,
Speaker 3: we go to you because I don't know anyone who
Speaker 3: can out square us up on whether this is a
Speaker 3: key privacy risk better than you could. Mark. What do
Speaker 3: you make of some of the accusations and whether or
Speaker 3: not this integration would open up any privacy concerns.
Speaker 5: Well, first of all, I completely agree with Kurt right.
Speaker 5: Elon Moss doesn't have the best of relationships with open
Speaker 5: Ai and Tim Altman, for one, doesn't have the best
Speaker 5: relationship with Apple and Tim Cook.
Speaker 6: He's not a fan of their app store, policies. He's
Speaker 6: building grock.
Speaker 5: Right through his own XAI company, right it's integrated for
Speaker 5: some users into the exapp right now, so he has
Speaker 5: an incentive to sort of pour cold water and this
Speaker 5: idea and raise skepticism. On the other hand, I do
Speaker 5: believe there are some privacy questions here. I don't think
Speaker 5: there's many questions about Apple's in house AI large language models.
Speaker 6: I think they showed in great in great ways how.
Speaker 5: Private they're on device AI is their own iCloud based
Speaker 5: AI protection. But once you start working with a third party,
Speaker 5: you're talking about servers that are powered by Microsoft Azure,
Speaker 5: you're talking about technology that's powered by OpenAI. There isn't
Speaker 5: a clearly explained way how Apple can verify the privacy
Speaker 5: of your data that's input into chat GPT. In fact,
Speaker 5: when you start moving from Apple's AI models on the
Speaker 5: phone to the chat GPT models the phone, makes it
Speaker 5: very clear that you're now in open AI territory.
Speaker 6: Right, So, I think the biggest thing you're.
Speaker 5: Doing right now is warning consumers that your data is
Speaker 5: being input into a third party provider.
Speaker 6: But they hadn't showed a way to verify the privacy.
Speaker 5: Of that information However, Apple and OpenAI have said that
Speaker 5: they are keeping that data that's input from the iPhone
Speaker 5: especially private. They're not logging it, they're not creating data profiles.
Speaker 5: But it is really the onus really is on open
Speaker 5: Ai to verify that, and Apple to keep on top
Speaker 5: of open Ai to make sure that they don't breach
Speaker 5: any of those terms on the privacy side of that partnership,
Speaker 5: which I honestly think they'll do.
Speaker 1: Cut.
Speaker 3: Maybe therefore there is some reason to the shouting that's
Speaker 3: going on on social media.
Speaker 4: Buy it on must but also cut. We're a bit
Speaker 4: immune to it. We've had it on musks.
Speaker 3: Throw some Bob comments via to Tim Cook in the past,
Speaker 3: of course, about perhaps the way in which the app
Speaker 3: store is run. Know that he's actually suing open Ai.
Speaker 3: How likely do you think it is that he would
Speaker 3: pad Apple iPhones across these six companies.
Speaker 7: I mean, this is someone who, as we know Caroline
Speaker 7: is not afraid of controversy and conflict and picking fights
Speaker 7: with other very rich and powerful people, Tim Cook being one,
Speaker 7: Sam Altman, Mark Zuckerberg, the list goes on and on.
Speaker 7: So I do think it's the kind of thing that
Speaker 7: you know he might do to try to prove a
Speaker 7: point or to make a point. And you know, for him,
Speaker 7: he's now even sort of hinting at, oh, maybe maybe
Speaker 7: he would build his own phone someday, right, like maybe
Speaker 7: he would partner with someone for a phone. I think
Speaker 7: this is very Elon. It's on brand for him, right.
Speaker 7: He sort of picks these fights. He does it very publicly.
Speaker 7: He makes these grand claims or aspirations, and then you know,
Speaker 7: when push comes to show, we'll see what he does.
Speaker 7: But I don't think it's the kind of thing that
Speaker 7: you know, for him, it's not a huge skin off
Speaker 7: his back, right if it makes the point he's trying
Speaker 7: to make. And I think, as Mark and I have
Speaker 7: pointed out, that's the goal here, is to sort of
Speaker 7: cast doubt on this whole partnership, to cast down on
Speaker 7: these other companies that are considered rivals of his, and
Speaker 7: to do so in a very public public way.
Speaker 3: Well, he's got the public's attention for now, so too
Speaker 3: does Apple. From WWDC, Mark German, great round, Loock Kirk
Speaker 3: Wagner with all the insights on Elon's ink, we appreciate it. Meanwhile,
Speaker 3: we've just got some breaking news. We'll keep you up
Speaker 3: to date with what is currently happening. From a legal perspective,
Speaker 3: Hunter Biden's jury tells the court that it hasn't eed
Speaker 3: reached a verdict in the gun case regarding Hunter Biden.
Speaker 3: We will bring you the updates as and when we
Speaker 3: receive them. For now, though, we stick to our knitting,
Speaker 3: which is technology.
Speaker 4: On this show. Navilla popol is with US.
Speaker 3: Senior research director with IDC to get her read on
Speaker 3: yesterday's anounments at WWDC. And I think what the question
Speaker 3: for me in many ways is why the market is
Speaker 3: loving it so much when initially we thought there's no
Speaker 3: wild factor here.
Speaker 1: Hi, Calyne, thanks for having me. You know you're so
Speaker 1: right because I've been like absorbing all this information as
Speaker 1: I'm sure everyone else here.
Speaker 6: I think it was really big, is you know?
Speaker 1: Yesterday there might have been a lackluster response because, like
Speaker 1: you said, there wasn't any brand new feature or use
Speaker 1: case that we haven't seen yet right from the other
Speaker 1: platforms or the other players in the market. But what
Speaker 1: to me really stood I No, I think what's catching on.
Speaker 1: You know, the wave here is this is a big,
Speaker 1: big move. It's a bold, you know, step forward for Apple.
Speaker 1: They Yes, sure they were you know, behind the curve
Speaker 1: a little bit. But I think the way they've come
Speaker 1: out right now, they've told you know, what Apple does best, right,
Speaker 1: They've told a really compelling consumer story most consumers aren't
Speaker 1: really aware about, you know, what's generated AI and what
Speaker 1: it can do. What I think Apple did that, you know,
Speaker 1: was his unius on their part is the way they
Speaker 1: integrated it into the user experience, which is of course
Speaker 1: central to Apple's you know history, and now it's always
Speaker 1: been about the user experience, and it's about how bring
Speaker 1: me an AI on device with everything that we do
Speaker 1: right and everyday apps that we have without having to
Speaker 1: go somewhere click on a different app or chatbot. It's
Speaker 1: just everything integrated. And then of course there's strong message
Speaker 1: on you know, if you do it with Apple Intelligence,
Speaker 1: it's going to be private and secure.
Speaker 3: But that privacy and security issue, do you think that
Speaker 3: that's in any way You're going to be questioned by
Speaker 3: what Musk is currently saying. Do you think it might
Speaker 3: put off people going for the iPhone sixteen?
Speaker 1: You know, you know, Elon Musk will be Elon Musk right,
Speaker 1: like you just said in the earlier segment, there's definitely
Speaker 1: going to be a lot of talk going that it's
Speaker 1: going to be around this, but I think Apple's messaging
Speaker 1: was clear right that if you using AI, the way
Speaker 1: they have shown this and everything that they've shown yesterday
Speaker 1: was it's going to give you a personalized, customized experience.
Speaker 1: It's going to keep most of things on device. It's
Speaker 1: only when you because that's where they're not using. I
Speaker 1: think there's a lot of confusion, and I was like
Speaker 1: looking into this myself earlier this morning. We have our
Speaker 1: team on ground at Apple Park to verify, you know,
Speaker 1: what is it the models that are being used in
Speaker 1: all of Apple Intelligence and all the features that we
Speaker 1: saw right, what are the different whether it's gen mojis,
Speaker 1: whether it's the summarization, description, search, everything that's on device,
Speaker 1: it's based on Apple's own AI models. It's only the chat,
Speaker 1: GPT and open AI comes in when you're trying to
Speaker 1: prompt Siri for a question that serie can't use the
Speaker 1: information that's on your device to answer, or Apple's own
Speaker 1: AI model, and that's the opt in feature which you're
Speaker 1: gonna give you user or serie access or you know,
Speaker 1: give your permission to access chat GBT.
Speaker 4: So I think the.
Speaker 1: Way they have messaged it is pretty clear that everything
Speaker 1: that you do on the Apple device will be secure.
Speaker 1: And even when Apple or the device can't use its
Speaker 1: own you know, on device AI model, it's going to
Speaker 1: use Apples Secure cloud uh to you know, personalized clouds
Speaker 1: to to be able to run those more complicated AI models.
Speaker 1: But Chat g I think.
Speaker 4: It's it was.
Speaker 1: It was very segmented in a different way that only
Speaker 1: you know used during serie prompts NEVLA.
Speaker 3: What's interesting is this is a global company with a
Speaker 3: lot of focus on China, and I'm interested is to
Speaker 3: longer term, you know that going to perhaps be more
Speaker 3: agnostic about which large language model they use, adopt or
Speaker 3: indeed build their own.
Speaker 4: But can this go live in China? Will it stimulate
Speaker 4: demand in China?
Speaker 1: So the key you know, and again like we were
Speaker 1: talking to our China team this morning, because Chat GBT
Speaker 1: isn't available in China right now. With this iteration, you know,
Speaker 1: it's not going to benefit the upgrade cycle in China
Speaker 1: with the with the device this year. However, the fact
Speaker 1: that Apple's in AI, the fact that Apple is doing
Speaker 1: these things, it's going to benefit the consumer perception which
Speaker 1: was taking you know, a negative turn, especially in China
Speaker 1: because consumers are you know, placing AI as a driving
Speaker 1: factor in their device is in terms of purchasing. So
Speaker 1: I think this this year, the upgrade cycle will probably
Speaker 1: be more impacted because as they said, it's going to
Speaker 1: be available in the fall and only in supporting the
Speaker 1: English language. So countries like US, UK or any consumers
Speaker 1: that are primarily English driven, it's going to drive because
Speaker 1: there's plenty of you know users out there with iPhone
Speaker 1: eleven and iPhone twelve. Because the average first cycle we're
Speaker 1: still looking at about three to four years, right, so there's
Speaker 1: any of those users that will you know, want these
Speaker 1: new devices, even if it's just English support.
Speaker 6: I'm our English speaking.
Speaker 4: User, Nobela keeping it global for us. We thank you
Speaker 4: so much.
Speaker 3: Nombilla Popel, thank you, Senior research director with IDC. French
Speaker 3: AI startup misrab It's raised six hundred and forty four
Speaker 3: million dollars in a new funding round that now values
Speaker 3: the company at close to six billion euros. The round,
Speaker 3: led by Bench Capital Firm and General Catalyst, give us
Speaker 3: a company additional resources to take on bigger global players
Speaker 3: such as of course open AI here in the US,
Speaker 3: mister Roll is France's prized AI champion. It's attracted more
Speaker 3: than one billion euros in investment in this last year alone. Meanwhile,
Speaker 3: there's a less prize French company right now.
Speaker 4: Oh, indeed, we do have some breaking news.
Speaker 3: Coming from the US, So before we head back out
Speaker 3: to France, I just want to have a look that
Speaker 3: Hunter Biden hasn't even convicted of gun charger by a
Speaker 3: jury in a Delaware trial. The jury took three hours
Speaker 3: to reach a verdict against the President's son, and Hunter
Speaker 3: Biden still faces a separate tax crime trial in California.
Speaker 3: We now want to go out to Katie Lyons, who
Speaker 3: has been standing by for us in Washington, and Kayley.
Speaker 4: The impact of this could be significant.
Speaker 8: Caroline Hunter Biden here found guilty of all three counts
Speaker 8: with which he was charged. This is the first time
Speaker 8: in history that a child of a sitting president has
Speaker 8: been convicted in federal court. Of course, this all stems
Speaker 8: from his purchase of a gun in twenty eighteen when
Speaker 8: he was addicted, according to prosecutors, to crack cocaine. And
Speaker 8: this jury has indeed agreed with the prosecution, finding him
Speaker 8: guilty of these three crimes, which he will be sentenced
Speaker 8: for not today but in a number of weeks. It
Speaker 8: potentially carries a maximum sentence of twenty five years in prison,
Speaker 8: although it's unlikely that maximum sentence would be given for
Speaker 8: a first time offender. But obviously this has massive both
Speaker 8: personal and political implications for the incumbent president. Of course,
Speaker 8: this is the son of Joe Biden we are talking about,
Speaker 8: could potentially bring political ramification to him as well, in
Speaker 8: addition to a great deal of personal difficulty. We have
Speaker 8: heard from President Biden affirmed just days ago that he
Speaker 8: would not intervene and pardon his son if he was
Speaker 8: indeed found guilty as he has been today. There could
Speaker 8: potentially be some political upside here in that This, of course,
Speaker 8: follows just less than two weeks ago Donald Trump being
Speaker 8: found guilty in the court in New York of thirty
Speaker 8: four felony counts and allegations from Trump and other Republicans
Speaker 8: that the justice system has been weaponized against Donald Trump.
Speaker 8: But it's the same justice system that has now found
Speaker 8: Hunter Biden guilty of a number of crimes, so potentially
Speaker 8: it throws some cold water on that argument. Still, though
Speaker 8: it does shine uncomfortable spotlight on the president's family. And
Speaker 8: this also is just one case in which Hunter Biden
Speaker 8: had been charged with crimes. He does face a separate
Speaker 8: trial in September on tax crimes.
Speaker 3: Caroline, Yes, exactly that one in California. Can you give
Speaker 3: us a breakdown of what next? Then, Kaylee posts this verdict.
Speaker 8: Be awaiting sentencing, Caroline, is really the question here? As
Speaker 8: I mentioned, twenty five years is the maximum. Two of
Speaker 8: these gun charges carries a maximum sentence of ten years each,
Speaker 8: the third a maximum sentence of five years. But this
Speaker 8: is the first time that Biden has a Hunter Biden
Speaker 8: that is, has been convicted of a crime, so that
Speaker 8: could bring potentially more leniency, But really will be looking
Speaker 8: to see what ultimately the judge decides is it will
Speaker 8: be up to that one individual in terms of the sentencing.
Speaker 8: Will also be looking to see whether there is an
Speaker 8: appeal on the part of the defense and whether or
Speaker 8: not they then look ahead to that trial that is
Speaker 8: set to happen in September. If there is an appellate
Speaker 8: process still paying out in this case, could they successfully
Speaker 8: delay that trial potentially though they have not yet had
Speaker 8: success in doing so, And It's worth keeping in mind
Speaker 8: that September tax trial he will be facing in California
Speaker 8: brings us ever closer to the presidential election in which
Speaker 8: Joe Biden, his father, is trying to seek a re
Speaker 8: election for a second term, and that timing potentially could
Speaker 8: add even greater political difficulty than what we're seeing here
Speaker 8: today with the conviction of the president's son the first
Speaker 8: time in history. Again, Caroline, that this has happened to.
Speaker 3: The child of a sitting president, and as he said, already,
Speaker 3: President Biden has said he would not pardon. But I'm
Speaker 3: interested as to whether we will hear from him, if
Speaker 3: there's any idea as to whether he will speak on
Speaker 3: the matter.
Speaker 8: Well, he does have a scheduled speaking engagement today, He'll
Speaker 8: actually be speaking at a gun safety event here in Washington,
Speaker 8: and he's set to travel to the G seven in Italy.
Speaker 8: This is where the personal and the presidential duty potentially
Speaker 8: come into conflict, Caroline is obviously this is likely a
Speaker 8: very difficult day for the Biden family. We will see
Speaker 8: if he makes any statement on this before departing to Italy,
Speaker 8: but when he does so, attends the G seven that
Speaker 8: will be carrying out the duties of the presidency, trying
Speaker 8: to focus on geopolitics, foreign policy, all of the other
Speaker 8: responsibilities of this office, while also having to deal with
Speaker 8: the difficulty of having your son the only living person
Speaker 8: from the car crash that killed his first wife and
Speaker 8: daughter many years ago. And of course, Bobiden, who had
Speaker 8: survived that crash, died of cancer back in twenty fifteen,
Speaker 8: and that is when many of Hunter Biden's addiction problems
Speaker 8: really began, and that really was what was at the
Speaker 8: heart of this case, Caroline. This is a story of
Speaker 8: someone who was struggling with an addiction. This was very
Speaker 8: painful as we saw ex girlfriends, ex wives, even Naomi Biden,
Speaker 8: hunter Biden's daughter, testifying throughout this trial about the personal
Speaker 8: difficulty and what he was grappling with over the course
Speaker 8: of those years that he was an addict, And obviously
Speaker 8: just shines a very uncomfortable spotlight on the first family.
Speaker 3: Very personal, Kayleie, but very political in nature. And I
Speaker 3: therefore wonder what impact you think it will have longer
Speaker 3: term as we enter the election.
Speaker 8: It's going to be hard to tell immediately, Caroline, as
Speaker 8: it has been hard to tell just in the last
Speaker 8: few weeks what the real impact of Donald Trump's own
Speaker 8: felony conviction has been, as we haven't seen any great
Speaker 8: shift in pulling thus far, so we'll see if it
Speaker 8: actually has a material impact on the way that Joe
Speaker 8: Biden is pulling. What I would point out here is
Speaker 8: there is a very important distinction. What we are talking
Speaker 8: about in this case is a conviction of the sun
Speaker 8: the president, not someone who has held the office himself
Speaker 8: or seeking to be president. That is different than Donald Trump,
Speaker 8: who not only is a former president of the United States,
Speaker 8: but currently is the presumptive Republican nominee. So while this
Speaker 8: may complicate the messaging that Joe Biden and other Democrats
Speaker 8: may want it to have utilized in this election cycle,
Speaker 8: the idea that Donald Trump is morally questionable by being
Speaker 8: a convicted felon, perhaps that argument gets more difficult to
Speaker 8: make when your own son is also convicted of crime,
Speaker 8: So that could be politically complicated. And of course, there
Speaker 8: has been a lot of scrutiny in Congress of Hunter
Speaker 8: Biden and the entire Biden family, a lot of allegations
Speaker 8: made by many different members as part of the impeachment
Speaker 8: inquiry that largely seems to have died down, but it'll
Speaker 8: be interesting to see if this revs anything up in
Speaker 8: that regard further congressionally as well. All that said, we're
Speaker 8: really just going to have to be paying attention to
Speaker 8: the polls. As right now it is June, we still
Speaker 8: have almost five full months to go before the election
Speaker 8: on November fifth, and a lot could happen between now
Speaker 8: and then, including a second criminal trial of Hunter Biden.
Speaker 3: Kaylie, We are, of course a business network. Is there
Speaker 3: any implication on companies surrounding gunlow and indeed the way
Speaker 3: that might direct travel for purchases, for demand for.
Speaker 8: Supply, That's an interesting question, Caroline. Obviously, Joe Biden is
Speaker 8: largely a president who has spoken about gun safety. He
Speaker 8: will in fact be doing so at in every town
Speaker 8: for a gun safety event later on today, which of
Speaker 8: course is affiliated with Michael Bloomberg, the founder and.
Speaker 4: Majority owner of Bloomberg LP.
Speaker 8: But largely he is a president that has advocated for
Speaker 8: greater gun control measures, which is difficult for perhaps explanation wise,
Speaker 8: when your own son illegally purchased a firearmist, as he
Speaker 8: was found guilty of doing today with this crack cocaine addiction.
Speaker 8: Will it, though, materially change anything around gun laws, Caroline,
Speaker 8: It's very unlikely, given that no matter what developments we
Speaker 8: have seen in the gun violence area, mass shooting after
Speaker 8: mass shooting in the United States, nothing really has ever
Speaker 8: done legislatively. Joe Biden has signed a number of executive
Speaker 8: orders looking to restrain gun purchases in some areas, but
Speaker 8: it's something that you really can't crack down on with
Speaker 8: that congressional approval, and with Republicans in control of the House,
Speaker 8: that is unlikely to be happening, at least in this Congress.
Speaker 3: The coolest of being put through the test at the moment, Kaylee,
Speaker 3: Are we likely to anticipate more of this as a
Speaker 3: political narrative, as a political way of doing business here
Speaker 3: in the United States.
Speaker 8: Yeah, it's an interesting question, Caroline, because we are at
Speaker 8: this really unique moment in time where we now have
Speaker 8: not just a former president and presumptive nominee who has
Speaker 8: been convicted of crimes, but a president's son convicted of
Speaker 8: crimes within the same week, both or with two week period.
Speaker 8: Both of these obviously incredibly historic. We have never seen
Speaker 8: anything like this before. It will be interesting to see
Speaker 8: how this alters the narrative because after Donald Trump's conviction
Speaker 8: of thirty four accounts in New York just less than
Speaker 8: two weeks ago, there has been a narrative about a
Speaker 8: justice system that has been weaponized or targeting Donald Trump,
Speaker 8: whether or not that is true. As Joe Biden did
Speaker 8: not actually have the power to say direct a New
Speaker 8: York State case against Donald Trump, he could theoretically have
Speaker 8: the power to step in with this Special Council investigation
Speaker 8: into Hunter Biden, with this trial, potentially with the pardon,
Speaker 8: and he has declined to do so. He has declined
Speaker 8: to intervene as he has really been trying to speak
Speaker 8: a message of preserving faith in the justice system and
Speaker 8: allowing it to do its work. So now that this
Speaker 8: has happened to his son being found guilty of three
Speaker 8: crimes here in Delaware, it will be interesting to see
Speaker 8: if it does indeed alter the narrative around the way
Speaker 8: the justice system is working. Because you can no longer
Speaker 8: say it's only going after Donald Trump.
Speaker 4: It has come for a Biden as well.
Speaker 3: Kayleie Lynes, just so much information to digest and reacting
Speaker 3: in the moment to this finding from the court and
Speaker 3: from the jury We thank you very much. Indeed, all
Speaker 3: Things Washington now we return to all Things Technology. Coming up,
Speaker 3: we're going to be deciding, well the direction.
Speaker 4: Of travel for Apple going forward.
Speaker 3: Laura Martin and Needham joining us with her reaction on
Speaker 3: Apple's long awaited AI strategy. Well, she makes the iPhone
Speaker 3: maker partnership with open AI.
Speaker 4: That's next.
Speaker 3: Plus, we already know where Elon Musk stands on Apple's
Speaker 3: newly announced partnership, but he's getting some empathy. New e
Speaker 3: State Minister for AI and Digital Economy, who spoke to
Speaker 3: Bloomberg earlier today, just.
Speaker 4: Tic a listen.
Speaker 9: What Elon said was, if it turns out that they're
Speaker 9: going to deploy charg ept and open the eyes infrastructure
Speaker 9: on the OS level, then there are some security risks.
Speaker 9: I think given the quality of what they're doing and
Speaker 9: the secrecy around the advancements that they're pushing forward, it
Speaker 9: makes a lot of sense for him to think, aren't.
Speaker 3: We welcome back to Bluemberg Technology. I'm Carolin Hide in
Speaker 3: New York and moments ago with the breaking news that
Speaker 3: a Delaware jury has reached a verdict finding Hunter Biden
Speaker 3: guilty of gun charges. Now he was found guilty by
Speaker 3: a federal court jury and has become the first child
Speaker 3: of a sitting US president to be convicted of such crimes.
Speaker 3: Now we know that the verdict came less than two
Speaker 3: weeks after his father's chief rival for the president see
Speaker 3: Donald Trump was found guilty by New York during his
Speaker 3: thirty four counts of falsifying business records late last month.
Speaker 3: Political system intertwines with the legal system, and to do
Speaker 3: that with us, as bloombergs Greg Farrell, and extraordinary really
Speaker 3: what we're currently seeing in terms of how the legal
Speaker 3: system is becoming a focus for both presidential candidates. But
Speaker 3: this one is novel in terms of the son of
Speaker 3: a sitting president.
Speaker 10: Yes, absolutely, Caroen, It's extraordinary. It's extraordinary because I think
Speaker 10: Hunter Biden believed he had he you know, was totally
Speaker 10: he had a deal a year ago to put this
Speaker 10: behind him, and that fell apart. And it's a question
Speaker 10: of timing with Donald Trump being charged in several places,
Speaker 10: it's just so patently would be unfair. It looked the
Speaker 10: optics would be terrible if Hunter Biden weren't charged and
Speaker 10: you know, taken to trial.
Speaker 4: How what did you make of the swiftness or not?
Speaker 3: Many had felt that perhaps they're coming back a second day,
Speaker 3: it hadn't been an immediate decision coming from the jury.
Speaker 10: Well, I think it's of course, we don't know what
Speaker 10: goes on in the room, but I think that if
Speaker 10: they get it in the afternoon, let's think about it.
Speaker 10: This is a serious thing. Let's not just drump fraternity conclusions.
Speaker 10: Everybody sleeps on it. This is a normal thing, and
Speaker 10: they all come back the next day. It's a pretty
Speaker 10: simple case. And unfortunately for Hunter Biden, he wrote it
Speaker 10: in a book what his condition was at the time,
Speaker 10: and he didn't take the stand. So it's really not
Speaker 10: a surprise in terms of the verdict. It's more, as
Speaker 10: you pointed out, the magnitude of this, that this strangeness
Speaker 10: of the world we're in where one former president's been
Speaker 10: convicted one week and then the son of the current
Speaker 10: president right now.
Speaker 3: I asked this previously of Kayley, and I put it
Speaker 3: to you as someone who so understands and embodies what
Speaker 3: the legal system means for US politics, but the US
Speaker 3: economy as well.
Speaker 4: Is this the way of the land now?
Speaker 3: Are we going to see far more legal system taking
Speaker 3: action around political decision making?
Speaker 10: Unfortunately, I don't believe necessary in the weaponization of the
Speaker 10: Justice Department that's been claimed. However, now that we've gone there,
Speaker 10: now that a local district attorney has riught charges against
Speaker 10: the former president, it's you know, this is going to
Speaker 10: get worse before it gets better. I don't think there's
Speaker 10: going to be cooler heads that are going to prevail.
Speaker 10: Whoever loses the election in November, might you know, get
Speaker 10: even more galvanized, or whoever wins to you know, exact
Speaker 10: some retribution. So it's a concerning time that way, Greg.
Speaker 3: We really appreciate you analyzing what is another unprecedented finding
Speaker 3: here Ander Biden found guilty of gun charges by a
Speaker 3: federal court jury in Delaware.
Speaker 4: Greg Farrell, we appreciate him.
Speaker 3: Meanwhile, let's go back to what we do at Bloomberg.
Speaker 3: The markets currently seeing course political risk evident over in
Speaker 3: Europe and France in particular, under pressure, we close the
Speaker 3: market down with the stocks it's undered off by almost
Speaker 3: a percentage point France in particular, as Macron calls a
Speaker 3: key vote and rumors did swirl as to what would
Speaker 3: be the longevity of his own presidency. He of course
Speaker 3: has refuted that for now and says that he would
Speaker 3: remain Now's that one hundred the big tech benchmark currently
Speaker 3: up at tenth f per percent. Apple guiding us higher.
Speaker 3: Bitcoin on the downside of by more than four percent
Speaker 3: as bonds sell off, a key correlation happening, and indeed
Speaker 3: much trepidation as we look towards a federal reserve decision
Speaker 3: this week and indeed an inflation print move on some
Speaker 3: individual stocks for you. Look, we did get some earnings
Speaker 3: coming out of Autodesk, and not good enough when it
Speaker 3: comes to this software provider. We're off by five percent.
Speaker 3: Tesla down by more than three percent. Interesting what we're
Speaker 3: seeing currently with Tesla and JP Morgan having a note
Speaker 3: out today really saying that having spoken to investor relations
Speaker 3: over at the company, they worry that the revenue generation
Speaker 3: of a robotaxi ain't coming anytime soon.
Speaker 4: We're off by more than three percent.
Speaker 3: But of course Elon Musk, the leader of Tesla, currently
Speaker 3: distracted by well the frustrations he sees with Apple's relationship
Speaker 3: with now Open ai and an integration of chatchpt within
Speaker 3: Apple's operating system.
Speaker 4: Apple currently up more.
Speaker 3: Than six percent a new record high two hundred and
Speaker 3: five is where we trade. And that's all because of
Speaker 3: the WWDC conference, which of course opened yesterday with a
Speaker 3: whole slate of software updates across products, partnership, as I
Speaker 3: mentioned with Open AI, and of course it's long awaited
Speaker 3: Apple Intelligence, his CEO Tim Cook.
Speaker 2: Recent developments and generative intelligence and large language models offer
Speaker 2: powerful capabilities that provide the opportunity to take the experience
Speaker 2: of using Apple products to new heights. Introducing Apple Intelligence,
Speaker 2: the new personal intelligence system that makes your most personal
Speaker 2: products even more useful and delightful.
Speaker 3: Apparently that video will being short in Apple devices as well.
Speaker 3: Jackie Devlos who was there on the ground yesterday and
Speaker 3: now life from San Francisco for us, and it felt
Speaker 3: in the moment that perhaps there wasn't that wow factor,
Speaker 3: but today the market showing there is.
Speaker 4: That's right, Carolina.
Speaker 11: It took the market a little while to catch up.
Speaker 11: But notice how Tim Cook emphasized the word useful, that
Speaker 11: theme utility. They mentioned AI for the rest of us,
Speaker 11: and I think this really showed through in the features
Speaker 11: that they highlighted yesterday as part of the Apple Intelligence rollout.
Speaker 11: Let's like, look at the summarization capabilities that we now have,
Speaker 11: transcription of audio. You can also personalize AI emojis. When
Speaker 11: you think about just kind of the mass appeal that
Speaker 11: can have, that was really key. They also emphasized privacy,
Speaker 11: but outside of the AI features as well, that iOS
Speaker 11: eighteen upgrade has some pretty cool things coming down the pipeline.
Speaker 11: For example, you can tap back messages with different emojis,
Speaker 11: You can schedule messages to be sent later. You can
Speaker 11: access more apps in different ways in your control center,
Speaker 11: organize them differently on the home screen. They really gave
Speaker 11: a lot to people here in this rollout, but look,
Speaker 11: we were sitting there for an hour and a half
Speaker 11: before the AI highlights really came through, so there was
Speaker 11: a lot of anticipation and look, this is their first swing,
Speaker 11: and from what we could tell, you know, it's just
Speaker 11: the first step in this broader AI rollout, and many.
Speaker 3: Felt that actually only sort of name checking open AI
Speaker 3: for two minutes within that ninety minute thereabouts present, it
Speaker 3: was trying to suppress the actual real integration but really
Speaker 3: lean into what it will do for you as a
Speaker 3: consumer a user. I'm really trying to identify privacy and
Speaker 3: protection being key, but you know, musk cooling that into.
Speaker 11: Question exactly you know Siria was a major highlight because
Speaker 11: that digital assistant will have the opportunity to basically be
Speaker 11: able to pull information from Chat GPT when answering questions. Now,
Speaker 11: you're absolutely right, privacy was highlighted, Caroline.
Speaker 4: They made sure to note.
Speaker 11: That you can opt out of this, that you have
Speaker 11: to give Siri permission to tap into chat GPT and
Speaker 11: when you think about the concerns that Elon Musk is raising, well,
Speaker 11: it does also shine a spotlight on the other questions
Speaker 11: that Apple has to answer. What exactly happens to the
Speaker 11: data does open Ai have access to kind of seeing
Speaker 11: how you interact with the app on the screen. There's
Speaker 11: a lot that I think people want to know and
Speaker 11: some of those details will come out, but they were
Speaker 11: key to actually highlight that users will be asked for permission,
Speaker 11: their request and informations will not be logged, so of course,
Speaker 11: really keeping with that Apple privacy ethos.
Speaker 3: Jackie Davis with a roundup, We thank you so much.
Speaker 3: It was a long day yesterday and up early with
Speaker 3: us today. We thank you. Let's keep this conversation going.
Speaker 3: Laura Marson, Senior Entertainment and Internet Analyst. They wre at
Speaker 3: Needham and Co. You join us for more after Well,
Speaker 3: you're a buy on Apple, you've overall think that the
Speaker 3: price point is going to go even higher than this,
Speaker 3: to a two hundred and twenty dollars price point. But
Speaker 3: what happened at the event yesterday and what galvanizes it today?
Speaker 6: Right?
Speaker 12: So, I mean, I think I think we were very
Speaker 12: disappointed at the Apple generative of AI stuff. First they
Speaker 12: put it last, As you said, they talked for sixty
Speaker 12: five minutes about new colors and new things that felt
Speaker 12: like Snapchat type of functionality, and then in minutes sixty
Speaker 12: five they started talking about the only thing Wall Street
Speaker 12: cares about because this company has very anemic growth. They're
Speaker 12: going to report one percent revenue growth this year, and
Speaker 12: what we really want to hear was what's going on
Speaker 12: with jenerator of I that's going to force an iPhone
Speaker 12: replacement cycle to drive that one percent revenue growth higher
Speaker 12: to two three four percent? And there is nothing I
Speaker 12: felt that they'd announced that made consumers want to run
Speaker 12: out and replace their iPhone And now we have to
Speaker 12: wait a year because they have an annual replacement cycle.
Speaker 12: So now if you didn't like what you heard yesterday,
Speaker 12: you have to wait a year till the next cool
Speaker 12: generative AI stuff. So I mean, I thought it was
Speaker 12: a very disappointing day, which is why the shares were
Speaker 12: down two percent as soon as they finished speaking.
Speaker 6: Today they're up six percent.
Speaker 12: Maybe because the developers are finding cool ways that they
Speaker 12: can integrate these functionality into their own individual apps. But
Speaker 12: I thought it was too little, too late. They continue
Speaker 12: to be way behind on janitor of AI and they
Speaker 12: need to catch up.
Speaker 3: And they seem to be trying to catch up with
Speaker 3: for now third party relationships. What is the flow of
Speaker 3: money here, Laura, Because they're not going to be charging
Speaker 3: us for the joy of being suddenly able to use
Speaker 3: chatchipts should we wish to do? How much are they
Speaker 3: going to be paid and open a How much money
Speaker 3: are they going to be having to spend or is
Speaker 3: it good that they don't need all their own GPU
Speaker 3: hole to a sad extent, Yeah, they say they're.
Speaker 12: Going to be using their own servers within the to
Speaker 12: so to hold on to the iOS data in their
Speaker 12: own service in the cloud over at Microsoft. So I
Speaker 12: do think they are still continuing to focus on privacy,
Speaker 12: but I think the way the money works.
Speaker 6: Is that they will.
Speaker 12: The way these deals typically work is that Apple will
Speaker 12: pay the Microsoft Cloud and Chat GPT probably a fixed
Speaker 12: fee per month, and then they'll put it into your
Speaker 12: iPhone price. So your iPhone price is going to go
Speaker 12: from fourteen hundred dollars to fifteen hundred dollars and you'll
Speaker 12: pay for it upfront. If they find there are heavy users,
Speaker 12: my guess is they add a monthly tier. You know,
Speaker 12: I pay twenty dollars a month right now for Chat
Speaker 12: GPT four. My guess is Apple gets that for a
Speaker 12: lower price, but they probably search charge heavy users of
Speaker 12: that particular functionality. I think a lot of people because
Speaker 12: of the privacy issue, will not use it, will not
Speaker 12: call out to the cloud to chat GPT.
Speaker 6: The Apple doesn't, isn't.
Speaker 12: It's not costing Apple anymore for those users.
Speaker 3: So maybe this key concern reference bytal Musk will be
Speaker 3: listened to by some in the crowd. Laura, the reason
Speaker 3: we love having on the show is the breadth of
Speaker 3: analysis you do across so many of the tech pays
Speaker 3: and entertainment.
Speaker 4: I'm interested is to you know who is winning the.
Speaker 3: Charge of any of the actual device makers or operating
Speaker 3: system providers.
Speaker 4: I mean, is alphabet doing any better with the Google offering?
Speaker 4: The only thing.
Speaker 12: That's strategic position for Google. Alphabet is better because they
Speaker 12: have Cloud, so they get it cheaper because they own it.
Speaker 12: They have Android, which is the direct competitor to iOS.
Speaker 12: They have an ad driven business, which in search, which
Speaker 12: means you have a lot of first party data. They
Speaker 12: have YouTube in the world's moving to video. As we know,
Speaker 12: YouTube is the number one streamer and makes a lot
Speaker 12: of money now. It's the largest subscription streaming service as
Speaker 12: well as the largest ad driven service, which gives them
Speaker 12: first party data. So it feels like their strategic position
Speaker 12: is a lot better. Even if they're sort of inferior
Speaker 12: at every one of those things, they the fact they
Speaker 12: do them all gives them really strong, better data on
Speaker 12: you and also more ways to make money from you.
Speaker 12: And they don't feel like they're strategically in a box.
Speaker 12: Apple feels to me like it's strategically in a box.
Speaker 12: It can't participate in Jenerator AI except for through it's
Speaker 12: a million of billion five users, and that isn't really
Speaker 12: true of Google. It feels like it's going to participate
Speaker 12: across the globe and it's three billion users a day
Speaker 12: that come in for search.
Speaker 4: Such great context.
Speaker 3: Laura Martin, thank you for joining us, senior Entertainment and
Speaker 3: Internet Internet analyst over at Needham and Co. Didn't even
Speaker 3: get onto paramount with her. Next time we were coming up,
Speaker 3: Masha Boucher's Day one Ventures announces it's biggest fun yet.
Speaker 4: We're backing from nine female limited partners. We sit down
Speaker 4: with her.
Speaker 3: I mean, well, let's just look at what's happening on
Speaker 3: the stock market elsewhere. Spotify up a percentage point. Now
Speaker 3: we're understanding here at Bloomberg. But the company will introduce
Speaker 3: a new higher price premium plan for some of its
Speaker 3: users later this year. The plan is going to cost
Speaker 3: at least five dollars more per month, but it's going
Speaker 3: to include access to high fidelity audio, to new playlisting tools.
Speaker 4: If you're an addict, you're gonna want it.
Speaker 3: Apparently from New York, this will been my technology.
Speaker 4: At this stage.
Speaker 3: VC firm Day one Ventures has announced it's raised one
Speaker 3: hundred and fifty million dollars for its latest fun Fun
Speaker 3: three joining us now Masha Buche, founder general partner at
Speaker 3: Day one Ventures, and it is the biggest haul of
Speaker 3: money thus far and some interesting LPs talk to us
Speaker 3: about how you brought them together.
Speaker 13: Hi, I think lots of nice to be here, and
Speaker 13: I think a lot of that of what we have
Speaker 13: accomplished this because of the great work of the founders
Speaker 13: that we've had a luck investing in and working together with.
Speaker 3: So interestingly, some of those founders are now your investors.
Speaker 3: How many of your original portfolio companies from initial funds
Speaker 3: have put money in you now?
Speaker 13: We were likely to be backed by a few dozens
Speaker 13: of founders, including ten Unicorn founders, and including fourteen founders
Speaker 13: that were previously backed, which is beautiful to see because
Speaker 13: it just approves that we, on the one hand, partnered
Speaker 13: with very successful and promising entrepreneurs who became successful financially
Speaker 13: so they.
Speaker 4: Can afford to be backing the fund.
Speaker 13: And on the other hand, it's also proved that we
Speaker 13: were able to build this partnerships that's like were like
Speaker 13: a very strong bond and they were happy with the
Speaker 13: experience they got as founders.
Speaker 4: Yeah, let's talk about the partnership.
Speaker 3: Because you got an interesting route into venture funding, and
Speaker 3: initially you built a public relations company. You help these
Speaker 3: founders tell their stories, and did that allow you therefore
Speaker 3: to get access to early opportunities to invest and you
Speaker 3: built from that.
Speaker 13: Yeah, I think what started I started, like I started
Speaker 13: two companies before. In previous company was PR Studios that
Speaker 13: I created, and we're out of thirty customers that I
Speaker 13: took out of a few hundreds, ten became you Courns
Speaker 13: in twenty seventeen. And it just brought me to understanding
Speaker 13: that lots of companies im betting on as a PR
Speaker 13: as a publicist of becoming successful. So I pivoted and
Speaker 13: change your Investor, which also like went very well, and
Speaker 13: I had a lot of exits and few unicorns, and
Speaker 13: that enabled me to get experience to be able to
Speaker 13: create new funds in twenty eighteen.
Speaker 4: So that's how it happened.
Speaker 13: But speaking about communication, I think if you look at
Speaker 13: like any business problems that you want to solve, and
Speaker 13: any business goal or task you want to solve, I
Speaker 13: think ninety percent of business problems they actually communications problems.
Speaker 13: And I think this is something that we train founders
Speaker 13: to solve, and this is something that we help them
Speaker 13: to do.
Speaker 4: For video includes well.
Speaker 3: Coin of course, the Cryptoi startup that was in some
Speaker 3: ways co founded by Sam Altman. You've also got do
Speaker 3: not Pay, You've got you dot Com. It's interesting that
Speaker 3: these little male founders, but you focused on female LPs
Speaker 3: to a certain extent. How many female founders do you
Speaker 3: have within your full vido?
Speaker 13: We are likely to beck over forty female founders, that's
Speaker 13: our portfolio. I was also very proud that was Fund three,
Speaker 13: we were able to bring nine female limited partners because
Speaker 13: funds you had no limited partners and for Funds three,
Speaker 13: I really had a big goal and North start to
Speaker 13: be able to find their few female alps and quit
Speaker 13: proud that we were able to find nine very successful,
Speaker 13: mostly female interrepreneurs that decided to beg this fund.
Speaker 3: We'll bring them on Masha Bucha. It's a really interesting story.
Speaker 3: Biggest fun today, one hundred fifty million.
Speaker 4: We thank you so much.
Speaker 3: Day one Ventures, thanks for stopping Divide the studio. We
Speaker 3: just want to return to that breaking news regarding the
Speaker 3: Biden administration potentially considering further restrictions yet further on China's
Speaker 3: access to chip technology use for artificial intelligence, that targetting
Speaker 3: new hardware that's now only making its way very slowly
Speaker 3: into the market, DEAA Gate all around, it's basically the
Speaker 3: most cutting edge chip architecture that really at the moment
Speaker 3: we're seeing semiconductive companies just starting to adopt and make
Speaker 3: them more powerful. But this could be affecting the likes
Speaker 3: of Nvidia in particular. We're seeing pressure on some of
Speaker 3: these stocks. More broadly, let's talk about the ecosystem of
Speaker 3: technology with Law Negier. It's an analyst portfolio manager of
Speaker 3: at Comngest that's a boutique asset management group that's more
Speaker 3: than thirty two billion dollars in assets under management and.
Speaker 4: Some big great bets on some key.
Speaker 3: Companies within the mag seven and more broadly, are you
Speaker 3: anticipating yet more geopolitics to interfere with some of the
Speaker 3: investing landscape here.
Speaker 4: Yes, we do.
Speaker 14: I mean we think it will affect sentiment. Now there
Speaker 14: will be disentangling of sentiment and then hard reality and
Speaker 14: the p and ls. But yes, we think geopolitics and
Speaker 14: the impact on this sector is here to stay.
Speaker 3: What's interesting is thus far in Video, even though it's
Speaker 3: sold into China, significantly has not been buffeted around too
Speaker 3: much in terms of its market capitalization because of this,
Speaker 3: because they've had a bigger demand coming from the US
Speaker 3: and well Western economies. Is that going to counterbalance? Is
Speaker 3: that going to be enough to sustain these heavy valuations?
Speaker 14: Tough one, but certainly you know the demand is very
Speaker 14: very strong and projected to outstrip supply for a good
Speaker 14: long while.
Speaker 3: Yet TSMC, for example, I believe is one of the
Speaker 3: key bets and beneficiaries you've called out in artificial intelligence?
Speaker 4: Why those particular names.
Speaker 3: Where are we seeing the money flow when it comes
Speaker 3: to picks and shovels than into the application of AI.
Speaker 14: Yeah, And when you think of Nvidia and then everything
Speaker 14: that supplies into it, there's TSMC. Well, nvidia' is a
Speaker 14: TSMC customer, then there's the suppliers to TSMC.
Speaker 4: So there's very direct.
Speaker 14: Plays in the sector, and then there's more and more
Speaker 14: indirect place. And it's quite fun to be thinking not
Speaker 14: just about those direct plays, but some of the indirect plays.
Speaker 4: As yeah, has the other has a video got too crowded?
Speaker 3: Have you felt that people aren't looking more broadly at
Speaker 3: this overall ecosystem?
Speaker 14: Well, it's hard to say.
Speaker 4: Nvidia is not known.
Speaker 14: So starting from that place, we like to think who's
Speaker 14: supplying to them, who's a client of theirs, How can
Speaker 14: we play this a bit differently.
Speaker 4: Perhaps where else can you play it differently?
Speaker 3: Because I know that we're thinking of Apple trying to
Speaker 3: play catch up when it comes to application and use
Speaker 3: real use case of ltificial intelligence by you and I
Speaker 3: in a consumer way, But how is it being adopted
Speaker 3: elsewhere and which companies are going to benefit?
Speaker 14: So there's a supplier to TSMC that makes the EUV,
Speaker 14: the extreme ultraviolet lithography equipment called ASML, which has become
Speaker 14: quite well known, but just a few years ago was not.
Speaker 14: There are companies like Hoya and Shinetsu Chemical and Japan.
Speaker 14: They make Hoya makes the mask blanks that are used
Speaker 14: to design the semiconductor circuits onto the wafers, and Shinetsu
Speaker 14: Chemical is a leader in the wafer space. So those
Speaker 14: tend to be a little bit less well known, and
Speaker 14: yet they're very present in the supply chain and great beneficiaries.
Speaker 4: Got to get global.
Speaker 3: Have you got to trade and actively trade this market
Speaker 3: or you just sit and wait for valuations to rise.
Speaker 14: We think this has been a great buy and hold
Speaker 14: space because you know, right now sentiment is very very buoyant,
Speaker 14: but look back two three years ago, everyone was extremely depressed.
Speaker 14: The geopolitics were weighing very heavily. So it's actually a
Speaker 14: wonderful space to be a long term buy and hold
Speaker 14: investor with the ability when you're brave to buy more
Speaker 14: when the sentiment's down.
Speaker 4: You're buying mil right now.
Speaker 3: Hah, you just said sentiment results, so I suppose not.
Speaker 4: It's great to have you here. Come back.
Speaker 3: I know you're passing through New York, Lord Nejia talking
Speaker 3: all things tech. Comeest analyst and portfolio manager. Meanwhile, that
Speaker 3: does it for this edition of Blue Meg Technology. Do
Speaker 3: not forget to check out our podcast. Provide it on
Speaker 3: the terminal as well as online on Apple, Spotify, and
Speaker 3: iHeart as a Blue meag Technology