WEBVTT - Alibaba Heavyweights Return and AI Regulation 0:00:01.440 --> 0:00:05.120 From Mahard where Innovation of Money and Power colle in 0:00:05.240 --> 0:00:06.720 Silicon Valley, NBN. 0:00:07.080 --> 0:00:20.520 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.360 --> 0:00:27.680 I'm Caroline Hyde at Blomberg's World headquarters in New. 0:00:27.640 --> 0:00:30.560 York and I'm Ed Ludlow in San Francisco. This is 0:00:30.600 --> 0:00:32.239 Bloomberg Technology coming up. 0:00:32.280 --> 0:00:35.400 Former Ali Baba heavyweights return to the company as the 0:00:35.440 --> 0:00:38.639 technology giant prepares for its six way restructuring and spin off. 0:00:38.640 --> 0:00:41.519 Will it stand? We discussed with Brian Wong himself of 0:00:41.640 --> 0:00:44.680 previously at Ali Baba, an author of the Tao of 0:00:44.720 --> 0:00:45.320 Ali Baba. 0:00:46.200 --> 0:00:49.520 Plus we'll discuss AI regulation and investing in the technology 0:00:49.560 --> 0:00:52.440 as President Biden prepares to meet with leaders here in 0:00:52.479 --> 0:00:54.880 California this week, and. 0:00:54.720 --> 0:00:58.000 We'll bring you updates on the missing titan submarine as 0:00:58.040 --> 0:00:59.920 search as a race to find the diving vessel with 0:01:00.120 --> 0:01:03.160 five people aboard that when missing on an expedition to 0:01:03.240 --> 0:01:05.039 view the Titanic shipwreckord There. 0:01:05.000 --> 0:01:07.959 Is one big technology story in the world and it 0:01:08.080 --> 0:01:12.320 is Ali Barba. A shake up in Ali Barba management overnight. 0:01:12.360 --> 0:01:14.120 You can see what it's doing to the ADRs down 0:01:14.160 --> 0:01:16.600 five percent. That's the biggest decline in around a month. 0:01:17.160 --> 0:01:19.560 What we see is Daniel Jung moves out of the 0:01:19.600 --> 0:01:21.959 CEO role. He will head the cloud unit. Then you 0:01:22.000 --> 0:01:25.440 have Jozai moving from being executive vice chair to being 0:01:25.520 --> 0:01:27.759 chairman of the board. And they bring in Eddie Wu 0:01:27.800 --> 0:01:31.040 who's basically led the core e commerce units and now 0:01:31.080 --> 0:01:34.240 he becomes the CEO in this kind of split structure. 0:01:34.640 --> 0:01:37.280 Lot's happening here is Ali Barba thinks about a complete 0:01:37.319 --> 0:01:39.720 restructuring and hiving off of various businesses. 0:01:39.800 --> 0:01:42.120 Caraen, it really is one to be watching. We've got 0:01:42.160 --> 0:01:44.640 to dig in more with Wow, someone who's served for 0:01:44.640 --> 0:01:46.440 a long time at the business has written about it. 0:01:46.480 --> 0:01:48.600 Bran Wang and Plica says with us, author of The 0:01:48.640 --> 0:01:50.880 Tower of Ali Baba, he was in fact the fifty 0:01:50.920 --> 0:01:54.320 second employee to join the Ali Baba Group. Real focus 0:01:54.360 --> 0:01:57.880 on globalization, very close relationship with that of Jack Maher. 0:01:58.040 --> 0:02:01.280 And what's so interesting is well, when you look at 0:02:01.320 --> 0:02:04.600 the analysts reviewing these moves, they feel as though the 0:02:04.680 --> 0:02:09.040 spirit of Jack Maher is here, his lieutenants for years 0:02:09.160 --> 0:02:11.080 come back. What do you think the signal is here? 0:02:11.120 --> 0:02:15.560 Brian, Yeah, I do think. Well, first of all, it's 0:02:15.600 --> 0:02:17.160 great to be with all of you and thank you 0:02:17.200 --> 0:02:20.400 for having me. I think this decision is really an 0:02:20.400 --> 0:02:23.960 important one and also a strong signal to the market 0:02:24.000 --> 0:02:26.840 but also to the company that yes, it's back to 0:02:27.120 --> 0:02:31.600 the roots of Ali Baba, the culture, the original sort 0:02:31.600 --> 0:02:35.280 of drivers of what motivates the business and bringing in 0:02:35.320 --> 0:02:37.840 those who really have a strong understanding of where that 0:02:38.000 --> 0:02:42.919 all started and also individuals who contributed to building what 0:02:42.960 --> 0:02:44.639 the company is today from the very start. 0:02:46.040 --> 0:02:50.440 Brian, how closely did you work with Josiah Edi Wu 0:02:50.760 --> 0:02:54.919 and Daniel Jung during your time at Ali Baba. 0:02:55.160 --> 0:02:58.399 Well, Joe is actually the individual who hired me back 0:02:58.440 --> 0:03:01.160 in nineteen ninety nine, and Jack I served as a 0:03:01.200 --> 0:03:05.079 special assistant for globalization for a number of years. Daniel 0:03:05.440 --> 0:03:07.400 I've known since the time he joined. So all of 0:03:07.400 --> 0:03:10.560 these individuals our people, and Eddie Wu as well. 0:03:10.639 --> 0:03:12.320 Eddie has been there from the start. He's one of 0:03:12.360 --> 0:03:14.160 the co founders of the company. 0:03:14.680 --> 0:03:17.720 He actually worked with Jack before Jack even started Ali 0:03:17.760 --> 0:03:20.960 Baba when he was at the company at China Page's 0:03:21.680 --> 0:03:24.799 Jack's first internet company. So I've known all these individuals 0:03:25.200 --> 0:03:26.480 during my time at the company. 0:03:26.720 --> 0:03:30.239 Let's dig in bron Therefore, with Eddie in particular, he 0:03:30.320 --> 0:03:35.480 moves really to a focus to leadership. What do you 0:03:35.480 --> 0:03:37.640 think at this moment we will be seeing from a 0:03:37.720 --> 0:03:40.120 CEO when we are still thinking of the restructuring of 0:03:40.120 --> 0:03:42.280 this business. Does that still stand as it had been 0:03:42.320 --> 0:03:43.680 outlined by Daniel previously. 0:03:45.400 --> 0:03:48.640 Yeah, obviously I think the decision to split the company 0:03:48.640 --> 0:03:50.600 in six parts remains the plan. 0:03:50.760 --> 0:03:52.480 The question is who would need the. 0:03:52.680 --> 0:03:56.360 Holding company Ali Baba Group, which now is more of 0:03:56.400 --> 0:04:00.320 an investment holding company than an operation operational comp company. 0:04:01.040 --> 0:04:04.120 Eddie brings a number of strengths to the company today 0:04:04.120 --> 0:04:06.800 in the leadership role. Obviously, he has a very strong 0:04:06.840 --> 0:04:11.400 technology background. He's played the CTO role or tech technology 0:04:11.480 --> 0:04:15.200 sort of leader for companies ranging from Alibaba dot Com 0:04:15.240 --> 0:04:19.559 to Ali pay Ali Mama, which was the key driver 0:04:19.680 --> 0:04:22.839 for the AD system for Talbo back in the day. 0:04:23.120 --> 0:04:25.920 He's run all of these and also served on the 0:04:25.960 --> 0:04:27.640 boards of companies like Ali Health. 0:04:28.200 --> 0:04:30.279 But he also has a strong business acumen. 0:04:30.320 --> 0:04:33.120 I mean to be able to construct this AD network 0:04:33.560 --> 0:04:35.760 under Ali Mama and serve as general manager. 0:04:36.000 --> 0:04:39.760 He also during his time has done investments. 0:04:39.760 --> 0:04:42.760 He has his own fund that he set up in 0:04:42.760 --> 0:04:47.359 twenty fifteen, so he's he's seen virtually every angle of 0:04:47.400 --> 0:04:50.800 the business. But also not just in China, but he's 0:04:50.839 --> 0:04:53.839 also seen the world outside of China from a technology standpoint, 0:04:53.920 --> 0:04:59.520 from a business standpoint, I think Eddie has really gained 0:04:59.560 --> 0:05:01.920 the skill that are required for a CEO in this 0:05:02.000 --> 0:05:04.719 sort of role, and at the same time he brings 0:05:04.800 --> 0:05:08.080 an understanding of Ali Baba's culture, which is so important 0:05:08.200 --> 0:05:09.960 in terms of the longevity of the business. 0:05:10.120 --> 0:05:14.240 Yeah, Brian woe coming to us from Shanghai, Caroline fifty 0:05:14.279 --> 0:05:18.520 second employee at Ali Baba, I find Daniel Jung the 0:05:18.560 --> 0:05:21.760 most interesting. He gets to take the lead of the 0:05:21.800 --> 0:05:25.360 crown jewel, the cloud business. Do we read that as 0:05:25.400 --> 0:05:26.480 a demotion, Brian? 0:05:28.600 --> 0:05:31.680 I would actually see that as a vote of confidence. 0:05:31.880 --> 0:05:35.120 I think that any individual who would be the CEO 0:05:35.320 --> 0:05:38.560 and chairman of the most important business within this sort 0:05:38.560 --> 0:05:42.320 of organization and try and run the holding company at 0:05:42.360 --> 0:05:47.120 the same time is a superhuman and probably it's an 0:05:47.160 --> 0:05:50.880 inhuman task to expect them to do both. I think 0:05:50.960 --> 0:05:54.560 Daniel himself had suggested that he really focus on the 0:05:55.080 --> 0:05:56.240 most important. 0:05:56.200 --> 0:06:01.760 Operations, that being Ali Cloud and you know, managing that 0:06:01.839 --> 0:06:02.960 business to success. 0:06:03.120 --> 0:06:05.719 He's done that, improved he could do that in the 0:06:05.760 --> 0:06:07.560 other businesses that he's run, so I. 0:06:07.480 --> 0:06:09.080 Would not look at it as a demotion. I would 0:06:09.080 --> 0:06:10.560 look at it as a vote of confidence and. 0:06:10.520 --> 0:06:13.760 Allowing Daniel to really help the company take what is 0:06:13.839 --> 0:06:17.880 most important forward and become successful, particularly when they're spinning 0:06:17.880 --> 0:06:19.000 out the company. 0:06:19.400 --> 0:06:24.280 Of those three individuals who can navigate the political landscape 0:06:24.279 --> 0:06:26.760 of China most capably. 0:06:29.279 --> 0:06:34.480 Well, you know, I think that in today's market, what's 0:06:34.480 --> 0:06:36.440 really important is being able. 0:06:36.240 --> 0:06:41.480 To build a business amidst a changing regulatory environment. 0:06:41.880 --> 0:06:44.160 I think that requires skill. 0:06:43.839 --> 0:06:47.760 And competency and understanding the technology, but also being able 0:06:47.839 --> 0:06:50.120 to kind of work within the system. And I think 0:06:50.160 --> 0:06:52.640 that's going to be a group effort, not one individual, 0:06:52.720 --> 0:06:55.799 but probably a team as a whole that has. 0:06:55.640 --> 0:07:00.840 Expertise in understanding different aspects of the fact is involved. 0:07:01.120 --> 0:07:04.599 And I think Eddie, as I mentioned, has a collection 0:07:04.680 --> 0:07:07.839 of those skills. But I think this also comes into 0:07:07.880 --> 0:07:11.760 play where where the larger organization will assist in guiding 0:07:12.040 --> 0:07:15.000 and also the six business unit heads, each of them 0:07:15.040 --> 0:07:18.480 will be responsible for the individual units, and each of 0:07:18.480 --> 0:07:22.800 those industries has unique regulatory considerations. 0:07:24.280 --> 0:07:27.360 Let's focus in on the man who hired you, Joe Side, 0:07:27.440 --> 0:07:31.920 because he really understands the relationship between the US and China. 0:07:32.320 --> 0:07:36.280 Many know him here more aphably as the Brooklyn Nets owner, 0:07:36.320 --> 0:07:39.200 as an owner of some significant real estate here in 0:07:39.280 --> 0:07:41.680 New York City brand And I'm interested as to what 0:07:41.800 --> 0:07:45.800 he does his relationship with investors, but also his relationship 0:07:45.880 --> 0:07:49.160 navigating political and geopolitics at large when it comes to 0:07:49.200 --> 0:07:52.200 the tensions between the US and China. 0:07:52.520 --> 0:07:57.000 Yeah, I think Joe as chairman is a fantastic choice. 0:07:57.200 --> 0:08:00.800 He's a consummate investor. That's where his or sort of 0:08:00.840 --> 0:08:04.120 original sort of you know focus was prior to Ali Baba. 0:08:04.680 --> 0:08:08.160 But he's also a trained lawyer who has an understanding 0:08:08.200 --> 0:08:11.280 of good governance and you know, how to navigate these 0:08:11.320 --> 0:08:15.280 regulatory systems. And he's, like you mentioned international, you know, 0:08:15.360 --> 0:08:19.440 he's educated in the United States, worked you know, all 0:08:19.480 --> 0:08:23.280 over the world, and he has the sensitivity and understanding 0:08:23.280 --> 0:08:25.760 of how to kind of balance these things. I think 0:08:25.840 --> 0:08:28.400 in a chairman role, that's exactly what an organization is 0:08:28.440 --> 0:08:33.080 big as Ali Baba needs, and one that has international aspirations. 0:08:34.200 --> 0:08:37.120 You know, he's in a very good position given his 0:08:37.200 --> 0:08:40.080 background and skills to kind of play that role and 0:08:40.120 --> 0:08:43.760 really help bridge the company from China to the world 0:08:43.840 --> 0:08:46.640 and vice versa, the world to China. 0:08:46.960 --> 0:08:49.240 Brian wog Or for of the Tao of Ali Baba 0:08:49.280 --> 0:08:52.440 Ali Baba, employee number fifty two live from Shanghai. 0:08:52.480 --> 0:08:53.760 Thank you so much for your time. 0:08:54.679 --> 0:08:56.559 Now coming out, we get to that other big story 0:08:56.679 --> 0:09:00.000 AI regulation. President Biden's in town here in San francisc 0:09:00.160 --> 0:09:03.680 go meeting execs and academics from the field of artificial intelligence. 0:09:03.720 --> 0:09:04.640 We'll discuss next. 0:09:04.960 --> 0:09:19.480 This is Bloomberg, President Biding heading to California for a 0:09:19.520 --> 0:09:23.319 meeting with business leaders and experts on artificial intelligence. As 0:09:23.360 --> 0:09:26.920 later today here in San Francisco. The meeting comes is 0:09:26.960 --> 0:09:31.079 his administration pushes companies to develop new security and privacy 0:09:31.120 --> 0:09:35.000 safeguards for the technology. For more spring in Bloomberg's and 0:09:35.240 --> 0:09:38.360 Edgerson in Washington, we have another meeting. We had one 0:09:38.440 --> 0:09:42.080 six weeks ago, hosted by Vice President Harris. We had 0:09:42.080 --> 0:09:45.679 some frameworks in the interim. Does this mean we might 0:09:45.720 --> 0:09:49.200 get some concrete rules from this administration on the field 0:09:49.240 --> 0:09:49.600 of AI. 0:09:51.080 --> 0:09:53.320 Well, concrete rules are going to be up to Congress. 0:09:53.440 --> 0:09:55.520 So what this administration has been very good at is 0:09:55.600 --> 0:09:58.520 kind of gathering information like the President is doing today, 0:09:58.559 --> 0:10:01.760 you know, talking to industry leaders, talking to the companies, 0:10:01.880 --> 0:10:04.800 talking to civil society and trying to understand what we 0:10:04.880 --> 0:10:08.120 hear all the time in Washington, risks and opportunities associated 0:10:08.160 --> 0:10:11.000 with AI. And we've seen that in the framework from 0:10:11.040 --> 0:10:14.120 the National Institute of Standards and Technology, from the White 0:10:14.160 --> 0:10:16.840 House's very own Bill of Rights on AI. So you 0:10:16.960 --> 0:10:19.920 see how they're kind of using this information to frame 0:10:19.960 --> 0:10:23.439 the policies they're putting out. But this is all guiding documents. 0:10:23.800 --> 0:10:27.560 It's going to in order to pass binding rules that 0:10:27.720 --> 0:10:30.400 will obligate the companies to certain practices. That's going to 0:10:30.400 --> 0:10:31.200 be up to Congress. 0:10:31.520 --> 0:10:35.079 And what's interesting is sort of the agitation over AI 0:10:35.200 --> 0:10:40.000 regulation in many ways has the ghost of social media 0:10:40.040 --> 0:10:43.600 policy really in it. And I'm interested as to how 0:10:43.679 --> 0:10:47.800 much Congress, lawmakers, regulators have got up that hill of 0:10:47.840 --> 0:10:51.520 really what artificial intelligence is, how in ways in which 0:10:51.559 --> 0:10:54.480 it perhaps poses risks and indeed might be regulated. 0:10:54.559 --> 0:10:57.000 Really that is so true. 0:10:57.040 --> 0:10:59.840 I mean, you definitely see lawmakers kind of haunted by 0:10:59.880 --> 0:11:03.079 the ghosts of social media failures where they haven't been 0:11:03.120 --> 0:11:07.239 able to pass even the most basic underlying data privacy 0:11:07.320 --> 0:11:07.880 standard at. 0:11:07.800 --> 0:11:08.560 The federal level. 0:11:08.840 --> 0:11:10.680 And the Senators will be the first to say that 0:11:10.760 --> 0:11:13.800 we haven't even done the most basic necessary to regulate 0:11:13.800 --> 0:11:14.719 the Internet. 0:11:14.440 --> 0:11:16.200 Since nineteen ninety six. 0:11:16.320 --> 0:11:18.920 So there is this kind of defeat US attitude going 0:11:18.960 --> 0:11:22.280 into discussions about AI technology and where they are now 0:11:22.400 --> 0:11:23.920 is really at the education phase. 0:11:24.080 --> 0:11:24.240 You know. 0:11:24.360 --> 0:11:27.600 Senate Majority Leader Chuck Schumer has scheduled three briefings for 0:11:27.679 --> 0:11:31.120 this summer to just explain to lawmakers what AI is, 0:11:31.480 --> 0:11:34.280 where we are, the race of the innovation race, and 0:11:34.320 --> 0:11:36.240 how it could we be used in military settings. So 0:11:36.280 --> 0:11:39.199 we're really just still in this kind of information gathering 0:11:39.280 --> 0:11:41.520 phase a lawmakers try to get a grasp on this 0:11:41.559 --> 0:11:42.320 new technology. 0:11:42.640 --> 0:11:45.360 Anna Edgerton, thank you for bringing us sort of some 0:11:45.440 --> 0:11:47.880 of the sticking points for Congress and the White House. 0:11:48.000 --> 0:11:51.400 Let's talk about ltificial intelligence a little bit more. Soft 0:11:51.440 --> 0:11:53.520 Bank in particular, the found mss. 0:11:53.200 --> 0:11:56.640 On Well's company is in the position to win, he says, 0:11:56.720 --> 0:12:00.240 the race to master AI, thanks to of course of 0:12:00.280 --> 0:12:02.520 dollars a tech investment, some of which some would say 0:12:02.559 --> 0:12:03.480 have gone a little sour. 0:12:03.640 --> 0:12:06.000 In fact, Soft bangaling won't be deterred by a few 0:12:06.000 --> 0:12:09.600 short term losses. He says, we will rule the world 0:12:09.679 --> 0:12:13.120 in the end. Fighting talk, Let's talk about if you 0:12:13.120 --> 0:12:15.000 can ever rule the world, and thus far, who's been 0:12:15.040 --> 0:12:17.640 ruling it in terms of investment. Hillary Fish is with 0:12:17.760 --> 0:12:21.040 US senior research analyst Technology Software at Clearbridge. 0:12:21.200 --> 0:12:21.920 You know, it's great to. 0:12:21.880 --> 0:12:24.640 Have you here in the studio and the height cycle 0:12:24.760 --> 0:12:28.520 is clear. Everyone's getting into various AI related names from 0:12:28.520 --> 0:12:31.720 an investment thesis. How much you're thinking about future regulation 0:12:31.880 --> 0:12:33.959 within that investment opportunity. 0:12:34.360 --> 0:12:36.960 Sure, thanks, Caroline, It's so good to be here, thinks said, 0:12:37.480 --> 0:12:39.040 it's a really terrific question. 0:12:39.160 --> 0:12:40.280 We think about it quite a bit. 0:12:42.559 --> 0:12:46.240 We're very early in the stages of discovering what regulation 0:12:46.320 --> 0:12:50.319 will look like and how that will impact the sector. However, 0:12:50.720 --> 0:12:53.600 I think in this particular case, there's going to be 0:12:53.640 --> 0:12:56.360 quite a bit of help to the government provided to 0:12:56.400 --> 0:12:58.880 the government by the companies that are actually the major 0:12:58.960 --> 0:13:03.560 providers AI services and products Microsoft for one, Open Ai 0:13:03.720 --> 0:13:07.040 for another, in conjunction with Microsoft, or big proponents for 0:13:07.120 --> 0:13:09.680 government regulation. So I think you're going to see a 0:13:09.760 --> 0:13:14.960 somewhat symbiotics situation between commercial and government entities in terms 0:13:14.960 --> 0:13:16.959 of bringing proper, appropriate and. 0:13:16.880 --> 0:13:18.280 Effect of regulation to AI. 0:13:18.520 --> 0:13:21.199 But of course it's a global question, and as Masioshi 0:13:21.320 --> 0:13:23.080 son of soft Bag, saying, we're going to rule the 0:13:23.080 --> 0:13:25.120 world in terms of AI, I mean, a large part 0:13:25.120 --> 0:13:27.800 of his investment is in Armholdings, a UK company. Like 0:13:27.880 --> 0:13:31.360 all of these things are global in nature. Is there 0:13:31.679 --> 0:13:35.880 sort of a race that's going on or is us 0:13:36.000 --> 0:13:39.440 the dominant force? Does it matter from your investment thesis perspective, 0:13:39.720 --> 0:13:40.280 I would. 0:13:40.080 --> 0:13:42.320 Say there is a race going on, and I would 0:13:42.400 --> 0:13:45.720 say that's going to form part of how that guides 0:13:45.840 --> 0:13:51.080 regulation in terms of how it oversees AI's development. But 0:13:51.120 --> 0:13:53.240 at the end of the day, a regulation is global 0:13:53.280 --> 0:13:55.240 in nature as well as we're seeing in a variety 0:13:55.240 --> 0:13:57.720 of instances. So I think we'll see the various governing 0:13:57.760 --> 0:14:02.040 bodies come together to figure out how how to oversee AI, 0:14:02.160 --> 0:14:04.680 at least in terms of Western nations, and then we'll 0:14:04.720 --> 0:14:06.400 see who's leading. 0:14:06.160 --> 0:14:06.560 In the end. 0:14:07.760 --> 0:14:10.440 Hillary, good morning from San Francisco. Good Afsen into you 0:14:10.480 --> 0:14:14.160 in New York. Does your research point you to any 0:14:14.200 --> 0:14:17.600 single one name or couple of names that you think 0:14:17.640 --> 0:14:20.560 are best positioned to win this AI race? 0:14:22.200 --> 0:14:23.480 It's another great question, ed. 0:14:23.560 --> 0:14:25.520 I think we think they are going to be a 0:14:25.600 --> 0:14:28.640 variety of names who benefit. We are early on in 0:14:28.680 --> 0:14:32.280 the process, and so far, clearly Nvidia and Microsoft have 0:14:32.360 --> 0:14:35.440 stood out in terms of AI leaders positioning their product 0:14:35.480 --> 0:14:40.000 lines early on for embedding AI services throughout and capitalizing 0:14:40.320 --> 0:14:42.520 on the AI opportunity. But there are a variety of 0:14:42.560 --> 0:14:45.920 them who are going to benefit up and down the chain. 0:14:46.080 --> 0:14:48.520 And I think what it comes down to is if 0:14:48.520 --> 0:14:52.280 a company has a unique and important data set, if 0:14:52.280 --> 0:14:56.320 they're embedded in their customers customers processes and workflows, and 0:14:56.600 --> 0:15:00.440 if they're equipped to actually help customers deploy in a 0:15:00.480 --> 0:15:03.600 safe and efficient manner, they should win. And this is 0:15:03.680 --> 0:15:09.160 going to involve all hyperscale platforms, including clearly Microsoft, Amazon 0:15:09.160 --> 0:15:12.720 because of its incumbency in corporate networks, Google because of 0:15:12.720 --> 0:15:16.040 its deep history, and AIML and also Oracle, who has 0:15:16.080 --> 0:15:19.000 an interesting place on AI. 0:15:19.360 --> 0:15:19.720 Hillary. 0:15:20.040 --> 0:15:23.600 We actually talk about Oracle much less than any of 0:15:23.640 --> 0:15:26.640 those names on this program Blombow Technology, and it has 0:15:26.720 --> 0:15:29.760 just also hit a fresh record high. So play that 0:15:29.920 --> 0:15:34.160 scenario out for us. Why is Oracle kind of a 0:15:34.240 --> 0:15:36.440 winner in this AI debate? 0:15:37.280 --> 0:15:41.920 Well, Oracle has re architected its cloud, offering its infrastructure 0:15:41.960 --> 0:15:44.560 cloud as a next generation cloud, taking many of the 0:15:44.560 --> 0:15:49.120 best practices that the original cloud providers learned during their process, 0:15:49.360 --> 0:15:53.160 and it has a unique take on how it's architectur 0:15:53.200 --> 0:15:57.880 that infrastructure with some i'd call it network heavy capabilities, 0:15:57.920 --> 0:16:00.960 which should actually be quite valuable in because I think 0:16:01.360 --> 0:16:04.280 we're going to have a period of proliferation of need 0:16:04.480 --> 0:16:07.680 of base infrastructure build out to accommodate the very high 0:16:07.720 --> 0:16:10.360 data volumes that AI will bring to us. I think 0:16:10.400 --> 0:16:12.920 Oracle will be well equipped to handle that along with 0:16:13.000 --> 0:16:16.640 Microsoft and others. And Oracle also recently announced some important 0:16:16.640 --> 0:16:20.640 AI partnerships with an LLM model company called Cohere and 0:16:20.640 --> 0:16:23.640 with Nvideo, which I think will bring big dividends to 0:16:23.720 --> 0:16:26.080 them over time. So there are a more recent but 0:16:26.240 --> 0:16:27.760 important emerging beneficiary. 0:16:27.880 --> 0:16:29.640 I mean, not many people want to talk about how 0:16:29.680 --> 0:16:32.800 expensive everything is, and we won't want to talk about 0:16:32.840 --> 0:16:34.600 how expensive stalks are. We don't want to talk about 0:16:34.600 --> 0:16:37.120 how expensive it is to run these large language models, 0:16:37.120 --> 0:16:40.000 the amount of GPUs everyone's having to be buying. All 0:16:40.080 --> 0:16:42.440 these companies pricing it right at the moment that seemed 0:16:42.440 --> 0:16:43.640 to be making it up as they go on. 0:16:44.680 --> 0:16:46.240 Well, it's such an interesting question. 0:16:46.960 --> 0:16:49.040 They're thinking quite a bit about how to price it, 0:16:49.040 --> 0:16:51.200 and we're starting to see emerging and pricing coming out 0:16:51.200 --> 0:16:51.960 in the marketplace. 0:16:52.360 --> 0:16:53.400 I think so far. 0:16:53.560 --> 0:16:56.360 They're doing a good job in terms of pricing for 0:16:56.440 --> 0:17:00.000 AI enabled services is actually quite high. In the case 0:17:00.080 --> 0:17:02.960 of APIs on Azure op ai, they were multiples of 0:17:03.000 --> 0:17:06.280 what a traditional AAPI would be to actually access marry 0:17:06.280 --> 0:17:10.399 the data with the models and AI enabled applications or 0:17:10.440 --> 0:17:13.119 priced anywhere from thirty to eighty plus percent what a 0:17:13.160 --> 0:17:17.280 traditional application would be. But there's real value in them 0:17:17.359 --> 0:17:19.600 because of the productivity benefits which will. 0:17:19.440 --> 0:17:20.520 Accrue to the users. 0:17:20.800 --> 0:17:22.320 So at the end of the day, I think they're 0:17:22.320 --> 0:17:26.560 starting to do a good job of providing the opportunity 0:17:26.640 --> 0:17:30.720 for profit as well as revenue. Acceleration is due to 0:17:30.720 --> 0:17:34.159 the uptake of as a result of the uptake of AI. Similarly, 0:17:34.600 --> 0:17:37.760 Salesforce just introduced their pricing of their AI enabled applications 0:17:37.840 --> 0:17:41.240 last week and those applications are going to have a 0:17:41.359 --> 0:17:42.840 perceipt component. 0:17:42.440 --> 0:17:43.960 As well as a usage component. 0:17:44.000 --> 0:17:45.840 I think you're going to see more and more creative 0:17:45.880 --> 0:17:49.679 models around AI, and where there are productivity benefits to 0:17:49.680 --> 0:17:52.560 be cornered, customers will pay for them. 0:17:52.920 --> 0:18:04.359 Hilly Fresh clear Bridge just deep research in AI. Time 0:18:04.400 --> 0:18:07.520 for talking tech. First up, the can Lines International Festival 0:18:07.640 --> 0:18:10.639 of Creativity is underway, and while it usually attracts the 0:18:10.640 --> 0:18:15.600 most influential executives in advertising and platforms. Two Notebaule names 0:18:15.600 --> 0:18:18.960 will not be in attendance. Elon Musk and Twitter's new CEO, 0:18:19.080 --> 0:18:22.000 Linda Yakarino this is the social network works to win 0:18:22.160 --> 0:18:25.440 back spending on the platform. However, on Tuesday, Twitter announced 0:18:25.440 --> 0:18:29.119 that it will explore solutions from companies that specialize in 0:18:29.240 --> 0:18:32.680 tracking the quality of ads and sticking with Musk, according 0:18:32.760 --> 0:18:35.600 to sources, he's likely to meet with India's Prime Minister 0:18:35.640 --> 0:18:38.800 Arendramodi today on a visit to the US. The private 0:18:38.840 --> 0:18:42.000 meeting is expected to take place early evening in New York. 0:18:42.160 --> 0:18:45.400 Who comes after Tesla and India revived dialogue in May 0:18:45.600 --> 0:18:49.280 following a year long standoff. Plus, Germany will funk a 0:18:49.400 --> 0:18:53.080 finance a subsidy package worth ten point nine billion dollars 0:18:53.200 --> 0:18:57.000 for a planned Intel facility in Magdeburg via it's Special 0:18:57.000 --> 0:19:00.159 Climate and Transformation Fund that, according to people, formil of 0:19:00.200 --> 0:19:02.479 the plans for more. Let's bring in Bloomberg's Aggie Cantrell 0:19:02.720 --> 0:19:06.679 out in Berlin. Aggie, what's the latest on this one? 0:19:07.400 --> 0:19:07.640 Yes? 0:19:07.760 --> 0:19:11.840 So this this investment of billion ten billion euros in 0:19:11.880 --> 0:19:14.560 subsidies from the German government is going to be also 0:19:14.640 --> 0:19:19.280 brought forward by thirty billion thirty billion euros as a 0:19:19.400 --> 0:19:23.399 direct investment, the largest foreign direct investment in Germany's history 0:19:23.480 --> 0:19:27.159 from any company. And Intel is going to be putting 0:19:27.200 --> 0:19:31.360 forward thirty billion euros of its own money into this investment. 0:19:31.400 --> 0:19:34.320 And that is also critical because actually this is a 0:19:34.520 --> 0:19:36.840 project that has been a long time in the works 0:19:36.960 --> 0:19:39.720 and it was put on pause because Intel said the 0:19:39.760 --> 0:19:43.359 costs were getting too high. Originally they committed to seventeen 0:19:43.400 --> 0:19:47.040 billion dollars with subsidies of seventeen billion euros was six 0:19:47.080 --> 0:19:50.520 point eight billion euros in subsidies from the German government, 0:19:50.680 --> 0:19:53.560 and they went back to the negotiation table this year 0:19:53.840 --> 0:19:56.440 because they were saying that it is costing them too much. 0:19:56.560 --> 0:19:59.440 Economic headwinds are hitting the company and so they needed 0:19:59.480 --> 0:20:02.560 more in terms subsidies. This is a question as well 0:20:02.600 --> 0:20:05.560 for how much Germany is willing to front for these 0:20:05.560 --> 0:20:07.880 companies to onshore a lot of this chip production. 0:20:08.280 --> 0:20:11.880 Aggie, great round about. Thank you, Aggie Cantrell Baron Berlin for. 0:20:11.880 --> 0:20:22.680 US, Welcome back to Bloomberg Technology. I'm Ed Lovelow in San. 0:20:22.600 --> 0:20:24.480 Francisco, and I'm Caroline Hider, New Yord. 0:20:24.520 --> 0:20:28.000 Let's stick with the geopolitical. US Secretary of State Anthony 0:20:28.040 --> 0:20:32.360 Blincoln says he expects to see more communications between Washington 0:20:32.680 --> 0:20:35.520 and Beijing following his visit to China, where he did 0:20:35.600 --> 0:20:38.399 meet with President Jijingping. He spoke about it at a 0:20:38.400 --> 0:20:39.879 press conference in London. 0:20:40.600 --> 0:20:46.040 The relationship and the communication between the two leaders, between 0:20:46.080 --> 0:20:49.320 President Biden and President she is most important of all. 0:20:49.400 --> 0:20:54.080 That's why they've had a number of communications and meetings 0:20:54.920 --> 0:20:57.200 to date, and that's why I expect you'll see more 0:20:57.200 --> 0:20:59.119 of that in the time ahead. 0:21:00.520 --> 0:21:02.840 There's a lot to go over in the context of 0:21:02.880 --> 0:21:06.199 foreign relations. Also the regulatory angle to all of this 0:21:06.359 --> 0:21:10.080 that ties in, of course artificial intelligence and joining us 0:21:10.119 --> 0:21:13.719 now for more is Andrew Bradford, professor at Columbia Law 0:21:13.720 --> 0:21:16.560 School and author of the upcoming book Digital Empires, The 0:21:16.600 --> 0:21:22.520 Global Battle to Regulate Technology, coming out this September. Professor Bradford, 0:21:22.560 --> 0:21:24.720 thank you for your time. I think we start with 0:21:26.080 --> 0:21:29.240 technology at the heart of what's happening between the US 0:21:29.320 --> 0:21:32.800