WEBVTT - Apple's iPhone Hits Stores and Microsoft's AI Power Needs 0:00:01.639 --> 0:00:02.480 From Mahart. 0:00:02.520 --> 0:00:05.960 We're Innovation of Money and Power co Lie in Silicon 0:00:06.040 --> 0:00:10.480 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.720 --> 0:00:11.240 Ed Loved. 0:00:11.119 --> 0:00:27.480 Love live from New York and San Francisco. This is 0:00:27.480 --> 0:00:31.319 Bloomberg Technology coming up Apple's iPhone sixteen. It hits the 0:00:31.360 --> 0:00:35.839 stores today without the crucial AI features what people buy. 0:00:36.640 --> 0:00:40.760 And Microsoft's AI power needs prompt the revival of a 0:00:40.800 --> 0:00:41.800 dormant reactor. 0:00:42.240 --> 0:00:45.800 Plus we hear from Salesforce CEO Marc Benioff and from 0:00:45.840 --> 0:00:49.159 the company's head of ventures. But first, let's just check 0:00:49.200 --> 0:00:52.040 in on these markets as we round out a risk. 0:00:52.120 --> 0:00:54.600 On week, we are up more than a percentage of point. 0:00:54.640 --> 0:00:56.480 Let's put it at that for the Nasdaq one hundred. 0:00:56.520 --> 0:00:59.960 Remember significant gains on this benchmark the previous week, where 0:01:00.000 --> 0:01:03.360 we eclipsed to five percent gain extraordinary moves. We dive 0:01:03.440 --> 0:01:06.200 back on the day Ed we have digested the federal 0:01:06.200 --> 0:01:09.320 reserve whopping cuts. What does that now mean for a 0:01:09.360 --> 0:01:11.640 little bit of profit taking happening in the MAGS seven 0:01:11.720 --> 0:01:13.840 for example? But what are you watching in terms of 0:01:13.840 --> 0:01:14.479 a key name. 0:01:15.120 --> 0:01:17.600 Going straight to Apple? Apple ups six tens of one 0:01:17.640 --> 0:01:22.000 percent the iPhone sixteen lineup goes on sale today sixty 0:01:22.040 --> 0:01:24.440 countries around the world. You will have seen the scenes 0:01:24.480 --> 0:01:27.120 in New York City, Caro here in San Francisco, the 0:01:27.160 --> 0:01:30.600 same thing. There's a lot of questions about how or 0:01:30.640 --> 0:01:33.200 whether or not this will drive an upgrade cycle. So 0:01:33.720 --> 0:01:36.160 we think about the iPhone in the context of Apple's 0:01:36.200 --> 0:01:39.280 overall portfolio of products. It is critically important. That's why 0:01:39.280 --> 0:01:42.800 this pie chart tells the story, right. I think there's 0:01:42.840 --> 0:01:45.759 a lot of skepticism about the innovation, the main innovation 0:01:45.959 --> 0:01:48.680 being a button on the side of the handset for 0:01:48.800 --> 0:01:51.760 camera control. Will that be enough? Is the delay of 0:01:51.800 --> 0:01:55.120 the release of Apple Intelligence, its generative AI platform to 0:01:55.160 --> 0:01:58.320 a later date going to impact this cycle? Those are 0:01:58.360 --> 0:01:59.520 all things that we need to consider. 0:02:00.120 --> 0:02:02.560 Got the perfect voice to do it with the Rilla profile, 0:02:02.960 --> 0:02:04.600 Senior research director at IDC. 0:02:04.800 --> 0:02:08.320 You run the numbers, you tell us a future of 0:02:08.360 --> 0:02:12.200 how integral the iOS system and Apple remains. Look, are 0:02:12.200 --> 0:02:15.920 you anticipating growth ultimately of market share Apple here? 0:02:17.440 --> 0:02:20.080 So you know, we all recognized, like right at the 0:02:20.120 --> 0:02:23.040 time of launch, right the features and everything that was announced. 0:02:23.040 --> 0:02:25.840 It was exciting, but a lot of people were disappointed. 0:02:26.240 --> 0:02:27.240 However, for those. 0:02:27.040 --> 0:02:29.000 Who you know, really follow the market market. I think 0:02:29.040 --> 0:02:30.880 we an't understand it's a long term play, right. It 0:02:30.919 --> 0:02:34.079 is definitely a first step for Apple in a long 0:02:34.160 --> 0:02:37.320 journey and in a big step, I think, so long term, 0:02:37.360 --> 0:02:41.280 we do expect this to you know, improve and impact 0:02:41.320 --> 0:02:44.359 Apple in a very positive way. But this year we're 0:02:44.400 --> 0:02:48.200 not expecting iPhone sixteen launch, you know, despite the hype 0:02:48.240 --> 0:02:51.919 and the marketing and the introduction of Apple Intelligence, even 0:02:51.960 --> 0:02:54.200 if it's a little bit rolled out a little later, 0:02:54.520 --> 0:02:57.480 we don't expect that to cause an upgrade cycle. 0:02:57.600 --> 0:02:58.080 This year. 0:02:58.480 --> 0:03:00.840 We think things will be slow to to pick up. 0:03:01.120 --> 0:03:04.200 But next year, however, we are expecting a four percent 0:03:04.240 --> 0:03:04.880 growth for our. 0:03:04.800 --> 0:03:08.239 Apple Why why the four percent acceleration? 0:03:10.120 --> 0:03:11.320 So you know, we've moved it up. 0:03:11.360 --> 0:03:12.960 I think it was about one or two percent, but 0:03:13.200 --> 0:03:16.160 after you know, all the announcements of WWDC and when 0:03:16.200 --> 0:03:18.480 we put out our forecasts, which was just a few 0:03:18.480 --> 0:03:22.840 weeks ago, given everything that we've seen already talked about 0:03:22.880 --> 0:03:25.119 Apple Intelligence of what's to come, right, I think it's 0:03:25.120 --> 0:03:27.680 not really about what's here today, but by next year 0:03:27.720 --> 0:03:30.160 what's going to happen. We're going to get language being 0:03:30.240 --> 0:03:32.799 rolled out and hopefully the issues with the you know, 0:03:32.880 --> 0:03:36.920 introduction of Apple Intelligence and EU and in China with 0:03:36.960 --> 0:03:41.240 partnerships being established, we think that will really help accelerate 0:03:41.280 --> 0:03:44.920 the momentum towards you know, the Apple Intelligence fold, whether 0:03:44.960 --> 0:03:48.480 it's sixteen, you know, towards later next year or the 0:03:48.560 --> 0:03:52.040 seventeen series, especially because I think right now it's still 0:03:52.040 --> 0:03:54.440 new in terms of the use cases. But as consumers 0:03:54.440 --> 0:03:57.200 start using it and they see their friends and family 0:03:57.320 --> 0:04:00.160 use it, and of course marketing picks up, consumer awareness 0:04:00.160 --> 0:04:03.360 and education increases, we do think, you know that those 0:04:03.440 --> 0:04:06.200 all those factors combined together will create sort of a 0:04:06.240 --> 0:04:09.200 bump of a certain percentage of people like that are 0:04:09.240 --> 0:04:10.840 because the average of fresh cycle. 0:04:10.600 --> 0:04:12.720 Nows are about four years and even five years. 0:04:12.760 --> 0:04:15.400 Right, we know plenty of people that have iPhone elevens 0:04:15.440 --> 0:04:19.680 and iPhone X, but next year, we're thinking it's going 0:04:19.720 --> 0:04:23.160 to lead to those with the thirteens or the fourteens 0:04:23.160 --> 0:04:25.200 even thinking, hey, you know what I want the seventeen. 0:04:25.480 --> 0:04:28.520 So Nabida, you and I were together at Apple Park 0:04:28.680 --> 0:04:30.640 just last week, it seems like a long time ago. 0:04:30.960 --> 0:04:33.720 I think it's worth reminding the audience of how Tim 0:04:33.760 --> 0:04:35.920 Cook summarized this generation of phone. 0:04:36.000 --> 0:04:40.920 This is this the innovation and invention these products deliver 0:04:41.320 --> 0:04:44.400 will continue to deepen the meaningful impact they have on 0:04:44.520 --> 0:04:48.320 all of our lives. I'm proud of our teams and 0:04:48.360 --> 0:04:51.320 what they've accomplished, and I can't wait for you to 0:04:51.360 --> 0:04:53.240 experience these amazing products. 0:04:55.440 --> 0:04:58.200 So then I look at your own research, your IDC 0:04:58.440 --> 0:05:02.159 forecasts for shit mints of smartphones in the years to come, 0:05:02.600 --> 0:05:05.320 and generate today I And that's my question for you. 0:05:05.400 --> 0:05:08.719 The innovation Tim Cook's talking about, It's not really on 0:05:08.760 --> 0:05:10.040 the hardware side, is it. 0:05:12.000 --> 0:05:13.240 No, And you know they. 0:05:14.640 --> 0:05:17.679 Drove that message very very clearly, right, It's really about 0:05:17.720 --> 0:05:20.600 the change of the user experience. Right, How is these 0:05:20.640 --> 0:05:22.920 new features going to improve your life? And how are 0:05:22.920 --> 0:05:26.080 they going to make your lives easier? And of course 0:05:26.120 --> 0:05:28.440 they showcase some of those use cases, but I think 0:05:28.440 --> 0:05:31.200 it's just really in the long run, going to change 0:05:31.200 --> 0:05:33.800 the complete way we interact with our smartphones, right. And 0:05:34.520 --> 0:05:37.159 I think that's when jen Ai or the super cycle, 0:05:37.160 --> 0:05:40.760 the refresh will really really kick, when those digital assistants 0:05:40.760 --> 0:05:42.640 start coming into play where we can just talk to 0:05:42.680 --> 0:05:46.200 our phones rather than having to go into multiple apps 0:05:46.200 --> 0:05:47.320 to do the task we need to do. 0:05:47.400 --> 0:05:50.120 And I'm really excited for when that happens. 0:05:50.600 --> 0:05:54.400 So software innovation the hardware innovation. Well, that Limelight got 0:05:54.440 --> 0:05:57.880 stolen by Huawei a few hours after Apple. It feels like, look, 0:05:57.880 --> 0:06:00.880 not everyone wants a trifle phone, but how are we 0:06:01.000 --> 0:06:05.520 seeing innovation? Mean that we all pulling away from market 0:06:05.520 --> 0:06:06.200 share in China. 0:06:07.839 --> 0:06:10.800 So definitely, Huawei's launch, you know, did get a lot 0:06:10.839 --> 0:06:13.160 of attention and they were trying to showcase in a 0:06:13.160 --> 0:06:13.640 different way. 0:06:13.720 --> 0:06:15.840 Right, this is our on the hardware side, right with 0:06:15.880 --> 0:06:16.800 the foldable device. 0:06:17.200 --> 0:06:18.800 But the truth of the matter is, you know, while 0:06:18.880 --> 0:06:22.200 Huawei does remain a very valid competitor for Apple in China, right, 0:06:22.240 --> 0:06:26.360 we've all seen the number as recently, the foldable segment 0:06:26.440 --> 0:06:29.200 is still very niche, and we do believe that, you know, 0:06:29.320 --> 0:06:34.680 in terms of foldables or this specific product impacting Apple negatively, 0:06:35.400 --> 0:06:37.440 I don't think so. Again, it's a very niche segment, 0:06:37.480 --> 0:06:41.360 and specifically, you know, with the trifold device, it's still 0:06:41.960 --> 0:06:44.440 going to be even further niche within the foldables because 0:06:44.480 --> 0:06:47.720 of supply challenges that Huawei's seeing. But overall, you know, 0:06:47.880 --> 0:06:51.120 it is a rocky road this year for Apple. But 0:06:51.160 --> 0:06:53.480 we do hope that with as they you know, resolve 0:06:53.520 --> 0:06:57.240 the partnership issues in China, especially because AI is a 0:06:57.360 --> 0:07:01.160 very more important you know, China market consumers are very 0:07:01.160 --> 0:07:04.840 spec driven. When you compare globally in terms of importance 0:07:04.960 --> 0:07:08.920 of AI features to consumers, Chinese consumers are more likely 0:07:08.960 --> 0:07:11.960 to place it incomining. 0:07:11.680 --> 0:07:15.360 Appurchase Nabila, We were just showing pictures from around the world, 0:07:15.400 --> 0:07:19.400 including China, sixty countries, right, that's important. I think it's 0:07:19.440 --> 0:07:23.320 what reminding ourselves. Like some people will buy some iPhone sixteens, 0:07:24.000 --> 0:07:27.200 it's all relative to prior generations, right that. Could you 0:07:27.200 --> 0:07:30.400 give any sort of geographical context on where you think 0:07:30.640 --> 0:07:33.520 this handset will do well and where it will do poorly. 0:07:35.040 --> 0:07:37.080 In terms of you know, this coming for the rest 0:07:37.120 --> 0:07:40.000 of this year. We think definitely there's a large installed 0:07:40.040 --> 0:07:42.160 base of users. Right, Like I mentioned, I'm sure we're 0:07:42.200 --> 0:07:45.600 all you know, iPhone elevens and X and regions where 0:07:45.720 --> 0:07:49.640 the refreshed cycles are longer. I think develop markets where 0:07:49.760 --> 0:07:53.320 Apple has larger share, right, where there's lots of those 0:07:53.320 --> 0:07:56.760 installed based of older models. I think those are the 0:07:56.800 --> 0:07:59.920 regions that will this year. So essentially it's not really 0:08:00.000 --> 0:08:03.360 Apple intelligence that's going to motivate them to buy. It's 0:08:03.560 --> 0:08:05.720 time for them to upgrade anyway, and I think those 0:08:05.800 --> 0:08:08.720 new buyers or shorter reverse cycles that's going to happen 0:08:08.760 --> 0:08:11.680 next year, especially with the trade and promotions. Right right now, 0:08:11.720 --> 0:08:15.160 it's more of a future proof device with the Apple 0:08:15.400 --> 0:08:16.400 iPhone sixteenth. 0:08:17.440 --> 0:08:21.840 Lebe lipa Pow whose research at IDC on smartphone markets 0:08:21.840 --> 0:08:24.360 so closely followed. Thank you. Good to have you back 0:08:24.360 --> 0:08:27.040 here on Bloomberg Technology. Okay, coming up on the show, 0:08:27.240 --> 0:08:31.600 Elon Musk is now on the Secret Services Radar after 0:08:32.040 --> 0:08:37.040 deleting a post about assassination attempts on presidential candidates. We're 0:08:37.080 --> 0:08:43.480 going to cover that story next. This is Bloomberg Technology. 0:08:50.520 --> 0:08:54.760 Israel continues to carry out strikes against Lebanon. Across Lebanon, 0:08:54.840 --> 0:08:59.760 stepping up hostilities against Hezballah. Thousands of pages and other 0:08:59.840 --> 0:09:03.240 device is exploding in Lebanon this week mark a new 0:09:03.360 --> 0:09:07.880 and deadly escalation in the use of supply chains against enemies, 0:09:07.920 --> 0:09:13.360 an urgency to reduce dependence on technology from rivals. Bloomberg's 0:09:13.400 --> 0:09:16.440 Dwan Flatley covers national security and joined us from Washington. 0:09:16.520 --> 0:09:19.800 And you've done some deep reporting with colleagues on this 0:09:19.920 --> 0:09:23.720 idea that, particularly for cheap goods, that when you go 0:09:23.800 --> 0:09:26.600 across the supply chain and the assembly of these products. 0:09:26.920 --> 0:09:30.080 They persent a risk because they can be weaponized. What 0:09:30.120 --> 0:09:30.640 did you learn? 0:09:32.440 --> 0:09:36.160 Yeah, it's a fascinating topic, and obviously what happened in 0:09:36.240 --> 0:09:39.720 Lebanon with these pagers and walkie talkies really I think 0:09:39.760 --> 0:09:44.160 crystallize the issue in a lot of people's minds. Where 0:09:44.240 --> 0:09:47.360 before we had we knew coming out of the pandemic 0:09:47.440 --> 0:09:50.200 that these supply chains were a big deal because we 0:09:50.200 --> 0:09:55.000 were worried about the cutoff of critical you know, PPE 0:09:55.040 --> 0:09:57.000 and other things like that, but this is taking it 0:09:57.040 --> 0:09:58.680 to a whole other level. I mean, I think you 0:09:58.760 --> 0:10:00.960 have to kind of think about this two categories. 0:10:01.080 --> 0:10:01.240 Right. 0:10:01.280 --> 0:10:05.360 You have what happened in Lebanon, which was according to 0:10:05.400 --> 0:10:09.319 what we've been able to ascertain. You know, Israel has 0:10:09.360 --> 0:10:12.559 not claimed responsibility for this, but you know the senses 0:10:12.679 --> 0:10:16.040 that they were involved obviously, and it was a specific 0:10:16.120 --> 0:10:19.280 hack and a specific sort of intelligence operation that has 0:10:19.400 --> 0:10:22.880 been used in various contexts, you know, for a long time. 0:10:22.960 --> 0:10:27.959 This is probably the most dramatic, you know, out outcome 0:10:28.000 --> 0:10:30.400 of that, but that is something that's been around for 0:10:30.440 --> 0:10:32.840 a while. And then you have this sort of separate 0:10:32.840 --> 0:10:38.360 but related issue of supply chains hacking critical infrastructure, and 0:10:38.440 --> 0:10:40.720 both of those two things kind of come together in 0:10:40.760 --> 0:10:43.280 our story, which sort of explains and looks at how 0:10:43.920 --> 0:10:47.640 as supply chains have both been concentrated in some countries 0:10:47.679 --> 0:10:51.840 like China, for instance, there's a vulnerability there. But at 0:10:51.840 --> 0:10:54.800 the same time, diversifying your supply chains also creates some 0:10:54.880 --> 0:10:58.640 vulnerabilities because you have excuse me, more entry points for 0:10:58.720 --> 0:11:02.960 people to to kind of exploit. So it's you know, 0:11:03.000 --> 0:11:06.480 it's kind of you there's not a lot of great options. 0:11:06.480 --> 0:11:08.200 But I think the one thing that folks that we 0:11:08.240 --> 0:11:11.320 talked to said was we just need more visibility into 0:11:11.360 --> 0:11:13.480 the supply chain. And so that's one of the takeaways. 0:11:14.120 --> 0:11:17.400 Let's talk about that visibility because many would say, look, 0:11:18.200 --> 0:11:20.840 it is now that the US says this, but previously 0:11:21.320 --> 0:11:24.479 the US and spies have a history of taking an advantage 0:11:24.400 --> 0:11:27.439 of the United States dominance in the supply chain. Now 0:11:27.480 --> 0:11:30.120 the shoes on the other foot, what can be done 0:11:30.600 --> 0:11:34.920 for investment by US companies to just track the supply chain. 0:11:36.440 --> 0:11:38.920 Absolutely, I mean, it's a great question because it kind 0:11:38.960 --> 0:11:39.920 of goes both ways. 0:11:40.000 --> 0:11:40.120 Right. 0:11:40.160 --> 0:11:43.440 We've seen this in the context of the Russia Ukraine War, 0:11:43.559 --> 0:11:47.280 where the US government has really been leaning on companies 0:11:47.320 --> 0:11:51.200 to get more visibility into the supply chains going out, 0:11:51.240 --> 0:11:54.320 who are you exporting to, who's not only who is 0:11:54.360 --> 0:11:57.560 your customer, but who's your customer's customer. And there's a 0:11:57.600 --> 0:12:01.079 big push on that from the government side, and actually 0:12:01.400 --> 0:12:04.120 on Capitol Hill a couple of weeks ago there is 0:12:04.160 --> 0:12:09.000 a big hearing and Intel and Texas Instruments and some 0:12:09.040 --> 0:12:11.600 other companies were really pressed on this, and basically what 0:12:11.640 --> 0:12:14.520 they were saying was it's very difficult to get that 0:12:14.600 --> 0:12:17.480 kind of clarity on not just who you're selling to, 0:12:17.600 --> 0:12:19.880 but who the people that you're selling to are selling to. 0:12:20.480 --> 0:12:23.920 So that goes out and then coming in same problem 0:12:24.080 --> 0:12:27.960 because you're not necessarily sourcing. You know, when you're buying 0:12:28.880 --> 0:12:33.760 a vast quantity of these types of material semiconductors or whatever, 0:12:33.800 --> 0:12:35.719 you're not buying it from. You know, you may be 0:12:35.760 --> 0:12:38.240 buying it from one point, but that vendor is getting 0:12:38.240 --> 0:12:41.320 it from multiple points. And so it's kind of the 0:12:41.320 --> 0:12:43.679 double edged source of globalization that we're really seeing here. 0:12:43.679 --> 0:12:45.360 So it's a very difficult problem to solve. 0:12:45.840 --> 0:12:47.760 This is where the Internet of Things comes in. Blue 0:12:47.800 --> 0:12:50.679 mugstand flatten me. We really appreciate your time. Thank you. 0:12:51.600 --> 0:12:53.960 Meanwhile, one of email Musk's posts. 0:12:53.520 --> 0:12:57.040 On X is facing an investigation by the Secret Service 0:12:57.559 --> 0:13:00.360 following the latest assassination attempt of form a. President Donald 0:13:00.400 --> 0:13:04.040 Trump mask took to X writing quote and no one 0:13:04.120 --> 0:13:07.480 is even trying to assassinate Biden Comma in a now 0:13:07.760 --> 0:13:12.520 deleted post for more, Bomberg Stanahal joins us for more, 0:13:12.600 --> 0:13:16.720 and you learned about this investigation through freedom of information at. 0:13:16.600 --> 0:13:19.480 Requests to the Secret Service? What did you ask for? 0:13:21.760 --> 0:13:24.720 Well, so the backup for a minute. When emailon posts things, 0:13:24.760 --> 0:13:28.959 they see an incredibly wide audience. He has millions of followers. 0:13:29.200 --> 0:13:31.680 His tweets are often amplified by others. And what was 0:13:31.760 --> 0:13:34.559 curious to me is that he posted this on Sunday 0:13:34.600 --> 0:13:37.520 and then he deleted it, and I was wondering why 0:13:37.520 --> 0:13:39.559 did he delete it? And I deleted and I think 0:13:39.559 --> 0:13:41.600 I actually tweeted at him like, hey, did you get 0:13:41.600 --> 0:13:43.880 a phone call from the FBI or the Secret Service? 0:13:44.800 --> 0:13:46.720 So then I just filed a request to the Secret 0:13:46.760 --> 0:13:50.560 Service asking you know, do you have records? Are you 0:13:50.559 --> 0:13:54.120 investigating the side like any email correspondence? And what's funny 0:13:54.120 --> 0:13:55.920 about Foyer? And there's a little bit of an art 0:13:55.960 --> 0:13:57.600 to this is that usually it takes quite a while 0:13:57.640 --> 0:14:00.640 to pry records loose sort of get a response. But 0:14:00.720 --> 0:14:03.240 I immediately got a response, like within twenty four hours. 0:14:03.240 --> 0:14:05.320 They sent a record, they said to me a response, 0:14:05.360 --> 0:14:08.960 and simultaneously, our colleague Jason Leopold, who is like the 0:14:09.040 --> 0:14:11.480 master of Foyer requests, had also done the same thing. 0:14:11.600 --> 0:14:13.840 So I was talking to Jason, like, hey, I just 0:14:13.840 --> 0:14:16.040 want to let you know that I filled this request, 0:14:16.040 --> 0:14:17.440 and he's like, oh, I did the same thing, and 0:14:17.440 --> 0:14:19.520 we've gotten very similar responses. 0:14:20.040 --> 0:14:24.840 So dona just real quick. I mean, it is an our. 0:14:25.120 --> 0:14:27.760 You know, I've looked to you so often to try 0:14:27.800 --> 0:14:32.280 and get hold of documentation because you cannot hide from documentation. 0:14:32.640 --> 0:14:36.560 The response of the Secret Service is really interesting because 0:14:37.160 --> 0:14:39.480 in the actual response itself, I'm just going to look 0:14:39.480 --> 0:14:40.920 down on my screen because I don't want to get 0:14:40.920 --> 0:14:44.480 it wrong that they withheld certain thing because disclosure could 0:14:44.520 --> 0:14:48.880 reasonably be expected to interfere with enforcement proceedings. And it's 0:14:48.960 --> 0:14:52.320 that sentence alone that lets us know what's going on 0:14:52.360 --> 0:14:55.360 in the background between Musk and the Secret Service. 0:14:56.880 --> 0:14:59.160 Correct, And to be clear, we shouldn't like jump to 0:14:59.200 --> 0:15:01.240 a conclusion that this means that there will be an 0:15:01.280 --> 0:15:03.560 enforcement proceeding or that there will be a big outcome. 0:15:03.560 --> 0:15:06.280 But I think the Secret Service, you know, by a law, 0:15:06.360 --> 0:15:09.000 I mean they have to investigate anything that could be 0:15:09.000 --> 0:15:11.360 seen as a credible bet thread or could be seen 0:15:11.400 --> 0:15:13.960 as something that's a potential incitement of violence, and so 0:15:14.000 --> 0:15:17.800 it's fairly standard operating procedure that they would look into this. 0:15:18.440 --> 0:15:20.400 For me, what I just want to know is what 0:15:20.480 --> 0:15:22.480 happened behind the scenes, Like was. 0:15:22.440 --> 0:15:26.120 He urged to take this down by investors or members 0:15:26.120 --> 0:15:28.320 of his family or people in his inner circle. Was 0:15:28.360 --> 0:15:32.120 there a whole back and forth, you know, with campaigns, 0:15:32.280 --> 0:15:33.960 or did the Secret Service like call him on the 0:15:34.000 --> 0:15:36.000 phone and be like, hey, buddy, like this is maybe 0:15:36.040 --> 0:15:36.600 not so great. 0:15:36.640 --> 0:15:39.360 Like I just would love to know exactly what happened in. 0:15:39.320 --> 0:15:41.560 Terms of what inspired him to take him down take 0:15:41.560 --> 0:15:43.560 it down, because he got quite a lot of backlash 0:15:43.640 --> 0:15:45.440 and it was up for several hours. 0:15:45.680 --> 0:15:51.000 ANAHA, the ALTA reporting Thank you Now. Palentiner has won 0:15:51.080 --> 0:15:53.960 a one hundred million dollar contract that will extend access 0:15:54.000 --> 0:15:58.200 to AI targeting tools to more US military personnel via 0:15:58.280 --> 0:16:01.560 the company's Digital Warfare platform. Now this will help create 0:16:01.600 --> 0:16:04.600 a picture of the same battlefield on thousands of digital 0:16:04.640 --> 0:16:07.920 screens simultaneously, and it's been used by the US military 0:16:08.000 --> 0:16:11.280 to help identify targets for airstrikes in the Middle East. 0:16:11.280 --> 0:16:13.280 This year, Greenberg is reporting that. 0:16:21.600 --> 0:16:25.120 Constellation Energy, it's the owner of the shuttered three Mile 0:16:25.200 --> 0:16:29.280 Island nuclear plant over in Pennsylvania, it's hitting record highs 0:16:29.280 --> 0:16:31.480 in terms of its share price because it's going to 0:16:31.520 --> 0:16:35.160 restart the reactor and set its output to Microsoft to 0:16:35.240 --> 0:16:38.320 power you guess, their oftificial intelligence. Bloomberg's Deinabas reported on 0:16:38.360 --> 0:16:42.200 this and actually there is this florry need for energy. 0:16:42.440 --> 0:16:44.520 And we're turning to nuclear. 0:16:44.160 --> 0:16:50.280 Now absolutely, because it's not just energy that Microsoft, Amazon, 0:16:50.400 --> 0:16:52.680 Google and all the cloud hyper scalers are looking for. 0:16:53.000 --> 0:16:56.200 They want clean energy. And you know, I think often 0:16:56.240 --> 0:16:59.920 we talk about solar and wind. Nuclear is also clean. 0:17:00.840 --> 0:17:03.920 It has some different components. It's always on, whereas wind 0:17:03.920 --> 0:17:06.399 and solar are a bit more variable. That's both a 0:17:06.480 --> 0:17:09.680 strength and weakness. One of the reasons Constellation had shut 0:17:09.760 --> 0:17:12.800 down this site five years ago is that they didn't 0:17:12.840 --> 0:17:14.640 have you know, the customer. 0:17:14.240 --> 0:17:15.720 Demand for that always on. 0:17:16.200 --> 0:17:19.359 Because for green energy, people were trying to pair things 0:17:19.400 --> 0:17:23.880 with solar and wind which are again more variable. Incomes Microsoft, 0:17:23.960 --> 0:17:28.159 which needs you know, tremendous amount of clean energy to 0:17:28.359 --> 0:17:31.440 run its ever expanding fleet of data centers and meet 0:17:31.480 --> 0:17:35.600 its climate pledges. And those data centers always need to 0:17:35.600 --> 0:17:39.440 be on so you know, Microsoft, Microsoft Energy chief Bobby 0:17:39.440 --> 0:17:41.040 Hollis told me it's a good match. 0:17:42.320 --> 0:17:45.960 It's an interesting deal for Constellation. Obviously, Constellations shares are 0:17:46.040 --> 0:17:49.720 up significantly. They have to invest one point six billion dollars. 0:17:49.760 --> 0:17:52.800 But they get a customer who's pledging or contractually applied 0:17:53.240 --> 0:17:56.600 obliged to buy energy for twenty years. That's the mechanics 0:17:56.600 --> 0:18:00.560 of the deal. But I guess we have short memories, right, Diana. 0:18:00.640 --> 0:18:03.000 I remember, let's say two years ago, when not just 0:18:03.080 --> 0:18:07.840 Microsoft but Amazon as well had very ambitious energy and 0:18:08.280 --> 0:18:09.439 climate targets. 0:18:09.560 --> 0:18:09.760 Right. 0:18:10.240 --> 0:18:12.560 How much is that a priority for Microsoft? 0:18:13.880 --> 0:18:16.520 So this has been a real issue for Microsoft. They 0:18:16.600 --> 0:18:20.400 still have these climate targets. One is, you know, all 0:18:20.480 --> 0:18:23.280 data centers running on green energy by twenty twenty five. 0:18:23.359 --> 0:18:25.359 And the other, which is the one that they're really 0:18:25.359 --> 0:18:27.800 not sure they can make at this point because of AI, 0:18:28.400 --> 0:18:31.359 which is there are pledge to be carbon negative by 0:18:31.400 --> 0:18:35.840 twenty thirty. They told us last spring that that pledge 0:18:36.160 --> 0:18:39.880 has been imperiled by the dramatic expansion in AI. 0:18:40.280 --> 0:18:41.440 So the deal. 0:18:41.240 --> 0:18:44.000 Today helps them, but it doesn't help them on the 0:18:44.040 --> 0:18:47.439 hardest problem. The deal today gives them green energy, and 0:18:47.480 --> 0:18:49.639 so it helps them with the green energy goal. But 0:18:49.800 --> 0:18:53.000 the biggest reason they are worried about their carbon negative 0:18:53.040 --> 0:18:58.600 by twenty thirty goal is other the embodied emissions from concrete, 0:18:58.640 --> 0:19:02.120 steel and chips which sure used in these data centers. 0:19:02.440 --> 0:19:05.320 So you know this part of the deal today that 0:19:05.359 --> 0:19:07.080 does not help them with that. 0:19:07.080 --> 0:19:11.119 That is, as Bobby Hollis told me, a harder problem. 0:19:11.320 --> 0:19:14.600 Bloombergstina Bess on an important deal but also important development 0:19:14.640 --> 0:19:16.960 in the world of AI. Thank you. Let's focus on 0:19:16.960 --> 0:19:19.600 the Xbox side of Microsoft's business, and in particular how 0:19:19.600 --> 0:19:22.919 it's president Sarah Bond is laying the groundwork for the 0:19:22.920 --> 0:19:26.080 company's next console in a bid to catch up to 0:19:26.160 --> 0:19:29.840 Sony and Nintendo. Bloomberg Cecilia the Anastasio joins us. Now 0:19:30.040 --> 0:19:33.760 this is a deep dive into Sarah Bond, a relative outsider, 0:19:34.200 --> 0:19:37.400 but now in what's a massive gaming company or arm 0:19:37.760 --> 0:19:40.000 she's really important. What is she trying to do? 0:19:41.280 --> 0:19:44.679 Sarah Bond is trying to move the Xbox business beyond 0:19:44.720 --> 0:19:48.639 the Xbox console. A head of Microsoft Gaming, Phil Spencer, 0:19:48.760 --> 0:19:50.800 says that they've been selling consoles to the same two 0:19:50.880 --> 0:19:54.560 hundred million global households, and they really want Xbox to 0:19:54.640 --> 0:19:57.200 mean more than the plastic box in your living room. 0:19:57.240 --> 0:20:02.400 Sarah Bond's mandate is to expand xbo games into phones, 0:20:02.600 --> 0:20:06.920 into next generation hardware shore but also, you know, potentially handheld, 0:20:06.920 --> 0:20:08.760 which is something that she and her boss have have 0:20:08.880 --> 0:20:10.000 sort of teased at. 0:20:10.600 --> 0:20:13.040 Your story is so fascinating because you go into the 0:20:13.080 --> 0:20:15.320 relationship between her and her boss, how they turn to 0:20:15.520 --> 0:20:18.480 HR to really ensure that they could communicate more efficiently. 0:20:18.720 --> 0:20:22.239 But also her history T Mobile, what is she going 0:20:22.280 --> 0:20:23.600 to bring to the TABLESSMIA. 0:20:24.760 --> 0:20:29.360 Yeah, Sarah Bond's history from T Mobile really gives Microsoft 0:20:29.520 --> 0:20:32.919 expertise that was lacking in the mobile world and in 0:20:32.920 --> 0:20:35.359 the mobile gaming world in particular. So at T Mobile, 0:20:35.600 --> 0:20:37.920 she's someone who knows a lot about subscriptions, a lot 0:20:37.960 --> 0:20:40.760 about how to keep people coming back to a product 0:20:40.800 --> 0:20:43.399 and also how to trim subscriptions in a way where 0:20:44.920 --> 0:20:48.000 users don't feel bloated by extra services they don't need. 0:20:48.080 --> 0:20:51.359 And Microsoft has a sort of Netflix for game service 0:20:51.400 --> 0:20:55.560 called the game Pass that has thirty four million subscribers, 0:20:55.600 --> 0:20:58.280 probably more at this point because that data is old, 0:20:58.680 --> 0:21:03.639 and Sarah Bond is being to reach gamers who want 0:21:03.840 --> 0:21:08.840 sort of a subscription product using game Pass, which will 0:21:08.880 --> 0:21:13.200 be available on phones, on PCs, on tablets, on Xbox, 0:21:13.240 --> 0:21:17.359 on smart TVs, whatever you you know have, Xbox hopes 0:21:17.400 --> 0:21:17.800 to be there. 0:21:18.640 --> 0:21:21.080 So see really quick, A big impetus for the Activision 0:21:21.119 --> 0:21:24.360 deal was mobile gaming and yet to see the story there, 0:21:24.400 --> 0:21:26.480 what is it. 0:21:26.480 --> 0:21:28.920