WEBVTT - Microsoft Activision Deal in UK and RSA Conference 0:00:01.280 --> 0:00:04.960 From the Heart where Innovation, money and power Collie in 0:00:05.040 --> 0:00:10.000 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.000 --> 0:00:10.960 and ed Love Love. 0:00:25.120 --> 0:00:28.040 I'm Caroline Hyde and Bloomberg's world headquarters in New York. 0:00:28.040 --> 0:00:28.920 And I met Lovelad. 0:00:28.960 --> 0:00:32.320 This is Bloomberg Technology live in San Francisco from the 0:00:32.400 --> 0:00:36.720 RSA conference focus on cybersecurity. How are companies and governments 0:00:37.000 --> 0:00:39.960 around the world responding to the digital threat? That's the 0:00:39.960 --> 0:00:41.639 conversation Caroline will be having here. 0:00:41.800 --> 0:00:45.400 Meanwhile, there is so much conversation we had around competition, 0:00:45.479 --> 0:00:48.360 around earnings, and we start there with this market check ed, 0:00:48.440 --> 0:00:50.160 because let's just go to where we're. 0:00:50.040 --> 0:00:51.040 Seeing some of the movement. 0:00:51.120 --> 0:00:54.760 Interestingly, the buying of the NASDAC today big tech on top. 0:00:54.800 --> 0:00:57.480 Why because of earnings outperforming the Microsoft the Google's. Will 0:00:57.480 --> 0:00:59.360 get to it in a minute, but this isn't a 0:00:59.360 --> 0:01:02.560 global store. Technology actually underperforming over in Europe as some 0:01:02.600 --> 0:01:05.880 of the chip makers chip related companies are actually underwhelming 0:01:05.920 --> 0:01:08.120 in terms of their own performance, so we see a 0:01:08.160 --> 0:01:09.720 bit of a dive. They're pulled back on the six 0:01:09.760 --> 0:01:13.479 tens of percent over in European technology trading crypto. 0:01:13.360 --> 0:01:14.360 Getting a real buy. 0:01:14.680 --> 0:01:17.840 Is this risk on around technology and the correlation there, 0:01:18.000 --> 0:01:20.880 or is this because we're still worried about a banking crisis. 0:01:21.000 --> 0:01:22.600 Let's have a look quick look at what's happening in 0:01:22.680 --> 0:01:26.280 terms of First Republic Bank. We're seeing yet further record 0:01:26.319 --> 0:01:28.880 lows for this particular lender. We know that we have 0:01:29.000 --> 0:01:30.800 some concerns around maybe a. 0:01:30.760 --> 0:01:31.640 New share sale. 0:01:31.680 --> 0:01:34.200 We've got Alphabet shares on the upside as its earnings 0:01:34.200 --> 0:01:36.279 come thick and fast. Let's just go to some breaking 0:01:36.319 --> 0:01:39.160 news though, because we do indeed have the fact that 0:01:39.240 --> 0:01:43.240 Disney we understand, is suing Florida Governor Rhonda Santis. This 0:01:43.360 --> 0:01:46.440 is according to CNBC as it currently stands at the moment, 0:01:46.480 --> 0:01:50.400 So Disney we understand suing Florida's governor Rhonda Santis. 0:01:50.480 --> 0:01:51.240 Of course, there's been. 0:01:51.160 --> 0:01:54.720 A lot of political issues between the governor of that 0:01:54.760 --> 0:01:58.440 particular state and indeed the autonomy of Disney around its 0:01:59.160 --> 0:02:01.600 municipal area, in the way in which it finances, where 0:02:01.640 --> 0:02:02.040 it works. 0:02:02.080 --> 0:02:03.000 Let's get to. 0:02:02.880 --> 0:02:04.520 That story in a moment. But we're going to go 0:02:04.560 --> 0:02:06.440 back to some of the numbers at the moment because 0:02:06.440 --> 0:02:08.960 Disney not really reacting on the news. We're up just 0:02:09.000 --> 0:02:11.000 a tenth of a percent let's go back to where 0:02:11.000 --> 0:02:13.040 we are seeing movement alphabet on the higher side of 0:02:13.120 --> 0:02:15.720 see Google actually managed to shake off those nerves around 0:02:15.840 --> 0:02:19.119 competitive threat coming from Microsoft and AI and Indy. Let's 0:02:19.160 --> 0:02:21.440 talk about Microsoft. Let's talk about the fact that it 0:02:21.480 --> 0:02:24.760 beats on earnings. But a big news this morning coming 0:02:24.760 --> 0:02:27.440 from the UK, as we understand the shares of Activision 0:02:27.520 --> 0:02:29.040 really moving on the back of that because the sixteen 0:02:29.080 --> 0:02:33.440 nine billion dollar proposed takeover by Microsoft of Activision on 0:02:33.600 --> 0:02:35.760 hold the UK saying I'm sorry, we don't buy it, 0:02:35.760 --> 0:02:37.799 we don't like it, for by more than eleven percent, 0:02:37.800 --> 0:02:40.040 even though Activision came early with its earnings. 0:02:40.240 --> 0:02:40.800 Let's get to it. 0:02:40.880 --> 0:02:43.519 Jennifer Ream please to say a blue meg Intelligence joins 0:02:43.600 --> 0:02:46.440 us to really dive into why the UK thinks this 0:02:46.520 --> 0:02:48.240 is such a competitive threat. 0:02:48.600 --> 0:02:50.040 You know what they're concerned about. 0:02:50.120 --> 0:02:52.640 I think are the innovations to come, you know, the 0:02:52.680 --> 0:02:55.320 where the markets are moving. So we at first everybody 0:02:55.360 --> 0:02:57.919 was focusing on consoles and how this might affect gaming 0:02:57.960 --> 0:02:58.600 on consoles. 0:02:58.600 --> 0:02:59.840 But with the UK's. 0:02:59.520 --> 0:03:02.560 Concern is that things are moving to the cloud. People 0:03:02.560 --> 0:03:04.760 will pay a subscription to play a game and instead 0:03:04.760 --> 0:03:07.080 of downloading it, they'll have access to all sorts of 0:03:07.080 --> 0:03:09.560 games on the cloud, and that's easier and it's much better. 0:03:09.840 --> 0:03:12.840 It doesn't clog up their computers. And they're concerned that 0:03:12.880 --> 0:03:15.880 Microsoft will dominate that area in the future because it 0:03:15.919 --> 0:03:18.360 already has such a strong position in cloud now if 0:03:18.400 --> 0:03:21.040 it gets all this content, and especially this kind of 0:03:21.160 --> 0:03:23.760 must have content, a game like Call of Duty, that 0:03:23.840 --> 0:03:26.520 it can basically exclude other cloud providers. And that's the 0:03:26.560 --> 0:03:27.200 concern here. 0:03:27.919 --> 0:03:31.079 Arbitrage investor is saying, Look, we've never seen an appeal 0:03:31.120 --> 0:03:34.880 which Microsoft is doing work against the UK Competition Market Authority. 0:03:35.360 --> 0:03:38.680 What then, of what this means for getting it still done? 0:03:38.720 --> 0:03:41.560 Because they've also got European regulators looking at it, US 0:03:41.640 --> 0:03:42.760 regulators looking at it. 0:03:43.360 --> 0:03:46.280 Look right now, it's a real uphill climb. It's not 0:03:46.320 --> 0:03:48.840 only going to be difficult to overturn this decision, it's 0:03:48.840 --> 0:03:51.200 going to take a really long time. Deals can't stick 0:03:51.200 --> 0:03:53.880 together for four and five years, which might be needed. 0:03:54.080 --> 0:03:55.920 You know, they have a lawsuit coming up right here 0:03:55.960 --> 0:03:58.280 in the United States that's supposed to start August two 0:03:59.040 --> 0:04:02.280 within the Federal Trade Commission before an administrative law judge. 0:04:02.400 --> 0:04:04.920 That decision would get appeal to the Commission. Let's say 0:04:04.960 --> 0:04:07.160 it was for the companies, and the commissioners are the 0:04:07.240 --> 0:04:09.560 very commissioners that voted to sue, so they would likely 0:04:09.600 --> 0:04:11.760 reverse it, and now the appeal would go to the 0:04:11.800 --> 0:04:14.760 federal courts. That timing are looking at another year and 0:04:14.760 --> 0:04:17.880 a half. So you know, outside even of just the 0:04:17.920 --> 0:04:22.520 difficulty substantively of overturning a CMA decision in the Competition 0:04:23.160 --> 0:04:26.480 Appeal Tribunal, you also have just timing, and timing tends 0:04:26.520 --> 0:04:27.240 to kill deals. 0:04:27.760 --> 0:04:30.400 At the end of the day, the read across big 0:04:30.440 --> 0:04:31.800 tech can't do big deals? 0:04:31.880 --> 0:04:33.400 Is that really what we're left with. 0:04:34.240 --> 0:04:36.320 I think it's not so much that big tech can't 0:04:36.320 --> 0:04:38.360 do big deals. I think it's going to be very 0:04:38.400 --> 0:04:41.480 difficult for them to do big deals. They'll get intensive scrutiny, 0:04:41.680 --> 0:04:43.760 and if they do have a problem, the remedy they 0:04:43.800 --> 0:04:47.080 propose has to be a really good one thorough. It 0:04:47.120 --> 0:04:50.120 has to completely replace the competition that's lost by virtue 0:04:50.160 --> 0:04:52.320 of the deal. That's going to be difficult to do 0:04:52.839 --> 0:04:55.359 with these regulators today, to get them to accept the 0:04:55.400 --> 0:04:56.520 remedy that's been offered. 0:04:57.000 --> 0:04:59.400 Always fantastic to have your analysis, Jennifer Ree. You're going 0:04:59.400 --> 0:05:02.840 to read her with Bloomberg intelligence. Let's get back to it, though, 0:05:02.839 --> 0:05:04.840 We've got to go over to San Francisco and you've 0:05:04.839 --> 0:05:05.960 got an important conversation. 0:05:07.760 --> 0:05:10.599 Yeah, we are live at the RSA conference here in SF. 0:05:10.640 --> 0:05:15.239 The focus cybersecurity, and we set the scene with Kevin Mandia, 0:05:15.240 --> 0:05:17.640 the CEO of Mandy and of course now part of 0:05:17.680 --> 0:05:18.560 the Google family. 0:05:18.640 --> 0:05:20.760 Kevin, it's good to see you, Thanks for having me. 0:05:21.240 --> 0:05:24.280 Let's start by saying, twenty twenty two a relatively quiet 0:05:24.360 --> 0:05:28.719 year from a cybersecurity perspective. We recognize that the digital 0:05:28.720 --> 0:05:30.360 threat you might have been quite well. I know you're 0:05:30.360 --> 0:05:33.400 always very busy, right, your peers, many of them are 0:05:33.400 --> 0:05:36.600 standing around us. Now, what is the topic of conversation today? 0:05:36.640 --> 0:05:37.400 What is the focus? 0:05:37.440 --> 0:05:38.760 Well, I think there's a lot of focuses. 0:05:38.760 --> 0:05:41.640 When you reviewed twenty twenty two and then looking into 0:05:41.720 --> 0:05:44.520 the future and twenty twenty two, I think the focus. 0:05:44.279 --> 0:05:46.240 Was, Hey, there was more zero days than before. 0:05:46.279 --> 0:05:48.360 We got to get better at the blocking and tackling 0:05:48.400 --> 0:05:51.920 the patch management. China really innovated on our offense when 0:05:51.920 --> 0:05:54.080 it came to cyber espionage we had. 0:05:54.000 --> 0:05:55.119 You've gone straight to China. 0:05:55.520 --> 0:06:00.000 WOHI is interesting because we recognize heightened geopolitical tensions between 0:06:00.080 --> 0:06:02.679 the United States and China. Do we see a ramp 0:06:02.800 --> 0:06:07.080 up in cyber activity coming from China correlate to. 0:06:07.080 --> 0:06:09.920 That, well, I do, you know, my view of all 0:06:10.080 --> 0:06:13.880 ideological and geopolitical conditions kind of seen in the cyber domain. 0:06:13.960 --> 0:06:15.920 What I can opine on is in. 0:06:15.800 --> 0:06:19.599 The cyber domain, I feel we saw more innovation, I 0:06:19.640 --> 0:06:24.400 meaning more vulnerability and vulnerability research and exploitation out of China. 0:06:24.720 --> 0:06:28.360 That to me was innovative, It was creative and advanced, 0:06:28.400 --> 0:06:29.120 and we saw them. 0:06:29.000 --> 0:06:30.440 Doing better operational security. 0:06:30.520 --> 0:06:34.880 So in that regard, offense with cyber espionage techniques out 0:06:34.880 --> 0:06:37.920 of China had perhaps its best greatest one year in 0:06:37.960 --> 0:06:39.839 advancement in my thirty year career. 0:06:40.320 --> 0:06:42.400 Mandian as it's been in the news cycle, has also 0:06:42.440 --> 0:06:46.200 been focused on activity in North Korea, particularly around RNSOM. 0:06:46.520 --> 0:06:50.960 We recognize that President Biden hosts his South Korean counterpart 0:06:51.560 --> 0:06:55.200 in the coming days. How much is that a threat 0:06:55.240 --> 0:07:01.520 At the moment, it seems somewhat random ransome activity that 0:07:01.520 --> 0:07:02.400 comes out of North. 0:07:02.240 --> 0:07:04.600 Well, you know, when you look at ransomware in particular, 0:07:04.640 --> 0:07:07.080 we saw actually a decrease in the over eleven hundred 0:07:07.160 --> 0:07:09.960 cases where we were hired to investigate what happened and 0:07:09.960 --> 0:07:13.200 what to do about it. We saw our ransomware investigations 0:07:13.240 --> 0:07:16.440 actually go down, but when we do threat research or 0:07:16.480 --> 0:07:19.120 respond to North Korean threat groups, we are seeing them 0:07:19.280 --> 0:07:23.520 hap to make money and those intrusions that are usually 0:07:23.640 --> 0:07:26.200 more indiscriminate, you know, it's kind of like attacker. We 0:07:26.280 --> 0:07:29.080 can and do some mining and things of that nature. 0:07:29.520 --> 0:07:33.880 It's basically been a year since Mandian joined Google Google Cloud. 0:07:34.000 --> 0:07:38.440 What's that transition been Like? You're a founder CEO essentially, right, 0:07:38.680 --> 0:07:40.760 do you remain entrepreneurial? 0:07:40.920 --> 0:07:43.200 How do you operate within a big BA slide? 0:07:43.240 --> 0:07:46.040 Well, so, you know, first, I don't feel that much 0:07:46.080 --> 0:07:49.240 of a change. We had tremendous alignment between what Mandian's 0:07:49.360 --> 0:07:52.360 vision of, you know, their cybersecurity future was and what 0:07:52.480 --> 0:07:55.360 Google Cloud's vision for what they want to do in cybersecurity. 0:07:55.840 --> 0:07:57.440 When you have that kind of alignment, it's kind of 0:07:57.480 --> 0:07:59.680 like two armies marching in the same direction towards the 0:07:59.720 --> 0:08:02.480 same goal. So it was easy to come in and integrate. 0:08:02.760 --> 0:08:05.960 I haven't felt change. We're still responding to breaches that matter. 0:08:05.960 --> 0:08:09.000 We're still advising customers on the consulting side how to 0:08:09.000 --> 0:08:10.800 transform your security programs. 0:08:11.200 --> 0:08:12.200 I think the big change. 0:08:12.320 --> 0:08:14.240 Back to your first question, which was kind of you know, 0:08:14.600 --> 0:08:17.360 what was twenty twenty two? What are we looking forward to? 0:08:17.760 --> 0:08:20.080 We are coming up on a shift change in security. 0:08:20.160 --> 0:08:23.160 You know, Cloud was a shift change in security where 0:08:23.200 --> 0:08:25.640 people had to recognize you could do security from the 0:08:25.640 --> 0:08:27.320 cloud or you had to do it for the cloud. 0:08:27.560 --> 0:08:29.720 Now we have AI coming out right and it's going 0:08:29.800 --> 0:08:31.040 to be a shift change. 0:08:30.800 --> 0:08:33.600 And you finally took us that absolutely so so generative AI. 0:08:33.679 --> 0:08:36.120 I mean, how does it change defense? 0:08:36.400 --> 0:08:37.800 Oh totally yeah. 0:08:38.280 --> 0:08:40.920 So you know, the best analogy I have, because the 0:08:40.960 --> 0:08:42.640 ways that it can do it is probably too quick 0:08:42.720 --> 0:08:45.560 for a sound bite, is I remember when Tesla one 0:08:45.640 --> 0:08:49.640 day just updated and my car could drive itself. I remember, yeah, absolutely, 0:08:49.679 --> 0:08:51.679 and I remember going, oh, there's no way it can 0:08:51.760 --> 0:08:52.320 drive itself. 0:08:52.360 --> 0:08:54.040 And first day I'm gripping the wheel. 0:08:54.400 --> 0:08:56.320 Second day, I'm on the two to eighty and I'm like, 0:08:56.400 --> 0:08:57.240 it worked. 0:08:57.400 --> 0:08:58.559 I think, AI, you're going to. 0:08:58.480 --> 0:09:02.360 See some of the most rapid answers where security challenges 0:09:02.360 --> 0:09:06.160 that were very hard, like great identity security, suddenly we go, wow, 0:09:06.679 --> 0:09:08.720 we're great at it now. So you're going to see 0:09:08.800 --> 0:09:10.200 advancements coming at speeds. 0:09:10.200 --> 0:09:13.000 Well, advancements. I mean, how are you integrating Bard very quickly? 0:09:13.040 --> 0:09:15.319 Because that is where Google has shown his hands. 0:09:15.320 --> 0:09:17.720 Well, we're creating, you know, for the security use case. 0:09:17.880 --> 0:09:19.240 You know, the way I look at is kind of 0:09:19.240 --> 0:09:21.040 coming from the other side. So is BARD coming at 0:09:21.080 --> 0:09:23.440 you for generative AI. But I'm looking at it from 0:09:23.440 --> 0:09:25.880 the vertex point and looking at it from We need 0:09:25.920 --> 0:09:28.880 our own models in security so that we can determine 0:09:28.880 --> 0:09:33.000 anomalies to log ons, anomalies for processes. The security use 0:09:33.040 --> 0:09:36.079 case is going to have different data, different machine learning models, 0:09:36.600 --> 0:09:38.400 So I kind of look at it from that standpoint. 0:09:38.640 --> 0:09:41.120 But I can feel the shift change coming. It will 0:09:41.160 --> 0:09:44.280 be real and complex challenges are suddenly going to get 0:09:44.320 --> 0:09:45.079 easier for us? 0:09:45.440 --> 0:09:48.040 Yes or no? Are you making money for Google? 0:09:48.720 --> 0:09:50.160 Am I making money? Yes? 0:09:50.559 --> 0:09:51.000 Yes or no? 0:09:51.040 --> 0:09:53.080 Will you be there in a year's time, still part 0:09:53.080 --> 0:09:53.960 of that bigger company? 0:09:54.360 --> 0:09:54.720 Yeah? 0:09:54.880 --> 0:09:58.320 Kevin Mandia, CEO of Mandy and thank you heart Caroline 0:09:58.400 --> 0:10:00.760 of Google Cloud from RSA you in New York. 0:10:00.920 --> 0:10:02.559 It's what a great punch the interview ed. 0:10:02.679 --> 0:10:03.480 Thank you so much. 0:10:11.040 --> 0:10:13.079 Let's look at the parent company of Google, Alphabet of 0:10:13.120 --> 0:10:16.360 course actually managing to post better than expected earnings for 0:10:16.400 --> 0:10:18.920 the fiscal first quarter showing really resilience in the face 0:10:18.920 --> 0:10:22.880 of new AI fueled search competition, also finally breaking even 0:10:22.920 --> 0:10:24.840 when it comes to cloud places. Say we can dig 0:10:24.840 --> 0:10:27.840 into Alphabet with Daniel Newman, his principal analyst at Full 0:10:27.920 --> 0:10:31.120 Term Research for joining us now and what are you 0:10:31.360 --> 0:10:34.720 seeing Dan at the moment in terms of Alphabet's shares rising. 0:10:34.760 --> 0:10:37.280 The fact that this doesn't seem to be a worry 0:10:37.280 --> 0:10:40.440 that Chat GPT, Open Ai, Microsoft Being are really eroding 0:10:40.440 --> 0:10:41.720 some of their competitive power. 0:10:43.000 --> 0:10:44.840 I think it's going to be a little bit longer 0:10:44.920 --> 0:10:47.160 before we start to see the real impact on search. 0:10:47.280 --> 0:10:50.200 Of course, we saw open ai and chat Gpt integrated 0:10:50.200 --> 0:10:52.880 into Being and that brought up some concern. But the 0:10:52.960 --> 0:10:55.559 core business model and where people land to do search 0:10:55.600 --> 0:10:57.400 today is still on Google. 0:10:57.559 --> 0:10:59.800 And that is also why we saw this big in 0:11:00.280 --> 0:11:01.480 topic rise about. 0:11:01.160 --> 0:11:04.240 Say Samsung and whether or not Microsoft should be investing 0:11:04.240 --> 0:11:07.040 big to put search on the mobile devices because right 0:11:07.080 --> 0:11:10.160 now the first place people do go to search is 0:11:10.200 --> 0:11:11.000 still Google. 0:11:11.080 --> 0:11:13.360 But Microsoft is making this interesting again. 0:11:14.040 --> 0:11:17.080 Certainly is and Microsoft really talking up it's AI investments. 0:11:17.120 --> 0:11:20.480 The focus on how they beef up compute power in 0:11:20.520 --> 0:11:25.400 their earnings as well is Alphabet managing to convince investors 0:11:25.400 --> 0:11:28.559 that it too is still an AI leader because it's 0:11:28.559 --> 0:11:29.840 managed to underwhelm us far. 0:11:31.120 --> 0:11:31.320 Yeah. 0:11:31.360 --> 0:11:33.240 I think they were forced to come out with their 0:11:33.280 --> 0:11:35.760 hand a little bit earlier than they had anticipated and 0:11:35.760 --> 0:11:38.960 wanted to, and that caused a little bit of consternation 0:11:39.120 --> 0:11:42.680 when that first launch is barred, didn't go exactly as planned. 0:11:42.960 --> 0:11:46.040 I use all these tools, and I'm also someone that's 0:11:46.040 --> 0:11:50.120 been following the innovation, the investment, and I think it 0:11:50.120 --> 0:11:53.160 would be really early to rule Google or Alphabet out. 0:11:53.240 --> 0:11:55.160 You see what they're doing with Brain and deep mind, 0:11:55.200 --> 0:11:58.439 the investments that they're making. No question, Microsoft got a 0:11:58.480 --> 0:12:00.240 first move or advantage put a lot a lot of 0:12:00.280 --> 0:12:01.360 companies on their heels. 0:12:01.679 --> 0:12:03.079 We saw Google had to. 0:12:03.040 --> 0:12:05.480 Follow, Aws has had to follow a number of other 0:12:05.520 --> 0:12:10.079 companies have. But I think multiple companies succeeding and investing 0:12:10.240 --> 0:12:12.800 is going to bring innovation to the consumer, to the enterprise, 0:12:12.840 --> 0:12:15.760 and that's actually good if there is no declarative winner 0:12:15.800 --> 0:12:16.240 this early. 0:12:16.920 --> 0:12:21.040 Of course, the real power behind profits, behind revenue for 0:12:21.040 --> 0:12:22.760 Alphabet is the search. 0:12:23.240 --> 0:12:24.679 But what about cloud? 0:12:25.080 --> 0:12:27.840 How much is this folding into the AI provision that 0:12:27.840 --> 0:12:31.079 we so clearly see with Microsoft and Azure and also 0:12:31.120 --> 0:12:32.280 here at other competitors. 0:12:33.360 --> 0:12:35.480 I think this inflection is actually going to be good. 0:12:35.520 --> 0:12:37.720 That the company turned a profit for the first time 0:12:37.760 --> 0:12:40.080 in this quarter. It was a small profit, but they've 0:12:40.120 --> 0:12:43.760 been mounting up some significant losses but had been continued 0:12:43.800 --> 0:12:47.640 to invest in the infrastructure required to move into different regions. 0:12:47.320 --> 0:12:48.199 In different zones. 0:12:48.840 --> 0:12:51.040 I think companies that have maybe been on the fence 0:12:51.160 --> 0:12:53.920 about utilizing Google Cloud may feel little more comfortable seeing 0:12:53.920 --> 0:12:57.960 that this company has turned a corner in terms of profitability. 0:12:58.080 --> 0:13:01.120 And also Google because it's reputation. 0:13:00.840 --> 0:13:02.720 In data in AI and there is a lot of 0:13:02.720 --> 0:13:06.640 strength there that should help them as companies turn to 0:13:06.760 --> 0:13:09.200 multi cloud. So while Google may not win all the 0:13:09.240 --> 0:13:12.520 cloud business, that's where AWS has been incredibly successful in. 0:13:12.559 --> 0:13:13.360 Azure as well. 0:13:13.920 --> 0:13:16.440 Google will start to become part of the equation in 0:13:16.480 --> 0:13:19.280 these enterprise cloud deployments and I think that's going to 0:13:19.320 --> 0:13:21.319 be a big part of them staying on pace for. 0:13:21.320 --> 0:13:22.600 Growth, and that's what they did this quarter. 0:13:22.679 --> 0:13:25.160 You saw twenty eight percent here versus twenty seven percent 0:13:25.200 --> 0:13:25.800 over at Azure. 0:13:26.840 --> 0:13:29.320 Really smart to read across the whole space for AI 0:13:29.360 --> 0:13:30.720 with you, Daniel Newman. 0:13:30.800 --> 0:13:34.000 Of course, Future and Research. We appreciate the expertise. 0:13:34.080 --> 0:13:36.360 Meanwhile, let's turn to another key tech john that are 0:13:36.360 --> 0:13:39.360 going to report soon. It's Meta reporting results off the Bell. 0:13:39.440 --> 0:13:41.959 To be specific, when we make Sarah frag joins us Phillip, 0:13:42.000 --> 0:13:43.840 what are we going to expect from Meta because we 0:13:43.920 --> 0:13:46.360 know it's a tough macro environment in terms of sales. 0:13:46.440 --> 0:13:48.120 Is it all about the costs the efficiency? 0:13:49.760 --> 0:13:53.360 That was the narrative last quarter that Mark Zuckerberg's CEO 0:13:53.480 --> 0:13:55.199 really pushed is that this is. 0:13:55.160 --> 0:13:56.720 A new era for the company. 0:13:56.720 --> 0:13:59.439 They're going to be cutting costs, They're going to be 0:13:59.559 --> 0:14:03.480 trying to be faster on their product more efficient. But 0:14:03.559 --> 0:14:07.560 I think that beyond that efficiency talk, you know, we'll 0:14:07.559 --> 0:14:09.920 see if it's been enough. They have announced a lot 0:14:09.920 --> 0:14:12.560 of cuts of their workforce, They've announced a lot of 0:14:12.760 --> 0:14:16.320 ways that they're slimming down their their product line. Is 0:14:16.400 --> 0:14:19.440 are investors going to be satisfied with that? Considering the 0:14:19.480 --> 0:14:23.240 fact that their main products are still slowing in growth 0:14:23.360 --> 0:14:26.840 and the advertising market is still very tough. If we 0:14:26.920 --> 0:14:31.040 see a resurgence in demand from advertisers, I think investors 0:14:31.040 --> 0:14:33.640 will be really happy about that. If we see continued 0:14:33.720 --> 0:14:36.960 growth of Facebook and Instagram, I think investors will be 0:14:36.960 --> 0:14:41.000 happy about that. But I think overall this company, it's 0:14:41.040 --> 0:14:43.360 going to be closely watched what they what they're really 0:14:43.400 --> 0:14:48.480 thinking strategically, efficiency is not a strategic product plan, it's 0:14:48.720 --> 0:14:53.160 it's a commitment, right, And so are they about the metaverse? 0:14:53.200 --> 0:14:56.160 Are they about AI? What's what's the real vision for 0:14:56.240 --> 0:14:58.920 the future of meta And I think people will really 0:14:58.960 --> 0:15:00.680 be hanging on with zuckerber that's about that. 0:15:00.760 --> 0:15:02.520 Yeah, you take us there, because it's going to be 0:15:02.520 --> 0:15:06.720 the fourth straight revenue decline, fourth straight quarter of revenue declines. 0:15:06.760 --> 0:15:10.000 We're expecting analysts expecting could see daily active users of 0:15:10.040 --> 0:15:12.440 more than two billion, monthly active users of more than 0:15:12.480 --> 0:15:13.120 three billion. 0:15:13.160 --> 0:15:14.880 So it's still such a juggernauts sir. 0:15:15.040 --> 0:15:16.960 But how much do you think we are going to 0:15:16.960 --> 0:15:18.880 hear this pivot to artificial intelligence? 0:15:18.960 --> 0:15:20.040 Is that going to be the lexicon? 0:15:20.200 --> 0:15:22.480 Or do we have to realize that they're still willing 0:15:22.520 --> 0:15:24.440 to take losses on the investment in the metaverse? 0:15:25.200 --> 0:15:27.600 Well, Zuckerberg has to be careful because he can't just 0:15:27.640 --> 0:15:30.840 cut out and say AI is our new north star 0:15:31.000 --> 0:15:35.560 because they just went through a complete rebrand of Facebook 0:15:35.560 --> 0:15:39.840 into meta and said that the metaverse was the future. 0:15:40.000 --> 0:15:41.800 So I think what they're going to have to do 0:15:41.920 --> 0:15:45.240 is is And we've seen it a little bit from 0:15:45.320 --> 0:15:50.560 Nick Klay yesterday on Bloomberg Television saying that you can't 0:15:50.600 --> 0:15:53.880 have the metaverse without AI and sort of making AI 0:15:54.040 --> 0:15:57.520 part of the metaverse vision. So it gets a little squishier. 0:15:57.520 --> 0:15:59.840 But I think that what we're hearing from employees is 0:16:00.000 --> 0:16:04.880 certainly more focused on AI. But Meta risks looking like 0:16:04.920 --> 0:16:08.360 they're following again the pressures we were talking about, the 0:16:08.360 --> 0:16:11.680 competitive pressure from CHATTYBT and Microsoft. Even though Meta has 0:16:11.760 --> 0:16:14.400 been very investing in this market for a long time. 0:16:14.520 --> 0:16:16.840 We hear how many times they use the turn of 0:16:16.880 --> 0:16:19.360 phrase lama its own large language model. We thank you 0:16:19.400 --> 0:16:23.000 so much, Sarah Fryar ahead of all things Meta. Meanwhile, 0:16:23.280 --> 0:16:27.320 ed all things cyber for you, right. 0:16:27.360 --> 0:16:31.600 We focus on the talent needed to combat cybersecurity threats 0:16:31.680 --> 0:16:35.640 with Morgan Danski NC Cybersecurity Collaboration Center Chief. 0:16:35.880 --> 0:16:38.000 That's coming up next. This is Bloomberg. 0:16:58.600 --> 0:17:01.600 We'relive at the RSA Friends here in San Francisco. The 0:17:01.680 --> 0:17:06.359 focus cyber security, and we turn to USA battle for 0:17:06.440 --> 0:17:12.359 talent to combat threats and cybersecurity. Morgan Adamski NSA, Cybersecurity 0:17:12.400 --> 0:17:16.560 Collaboration Center Chief you have a target three thousand new 0:17:16.640 --> 0:17:19.439 staff by next year, Why do you need three thousand 0:17:19.520 --> 0:17:21.400 more people operating within your agency? 0:17:21.520 --> 0:17:24.119 Absolutely, so we continue to have to grow the talent. 0:17:24.200 --> 0:17:27.040 We need people with different backgrounds. As we have attrition 0:17:27.160 --> 0:17:30.360 and people leave, we need to continue to fill that pipeline. 0:17:30.400 --> 0:17:32.960 And so we need people that just are ready to 0:17:33.000 --> 0:17:35.200 fulfill the mission and have purpose. And so we're excited. 0:17:35.359 --> 0:17:37.480 It's our biggest hiring year to date. 0:17:37.800 --> 0:17:40.400 When our global audience thinks about NSA, that they think 0:17:40.440 --> 0:17:42.800 about all the sorts of security threats. But where is 0:17:42.840 --> 0:17:45.080 your focus when it comes to cybersecurity? 0:17:45.119 --> 0:17:46.360 What are you working on day to day? 0:17:46.480 --> 0:17:49.120 Yes, the People's Republic of China is the pacing threat 0:17:49.200 --> 0:17:49.479 right right? 0:17:49.480 --> 0:17:50.920 You went right there, straight to China. 0:17:50.960 --> 0:17:53.280 How does that? How does that look? What sorts of threats? 0:17:53.359 --> 0:17:54.560 Is this ransomware? 0:17:54.680 --> 0:17:55.639 What do you we did? 0:17:55.720 --> 0:18:00.000 It's more so that persistent broad threat cyber espionage preposition, 0:18:00.400 --> 0:18:04.600 looking for opportunities to gain information, to steal intellectual property. 0:18:04.880 --> 0:18:08.440 It is the broadest, most pervasive threat that we face 0:18:08.480 --> 0:18:09.120 every single day. 0:18:09.240 --> 0:18:14.280 The bind administration has set broad cybersecurity goals, everything matching 0:18:14.320 --> 0:18:18.800 your efforts in hiring, to competency in cybersecurity. What kind 0:18:18.800 --> 0:18:21.840 of energy is that given you in your agency? 0:18:23.200 --> 0:18:25.520 A lot of energy. We're very excited because we have 0:18:25.560 --> 0:18:27.440 a lot of people coming out of college, but people 0:18:27.520 --> 0:18:29.720 that want to have, you know, mid career changes to 0:18:29.720 --> 0:18:33.159 come into cybersecurity, and so it's really invigorated us to 0:18:33.240 --> 0:18:36.320 go out recruit, talk about our mission publicly and bring 0:18:36.359 --> 0:18:37.600 in as many people as possible. 0:18:38.359 --> 0:18:40.280 Morgan, how many times a day do you say the 0:18:40.320 --> 0:18:41.359 words generative and. 0:18:41.400 --> 0:18:42.800