WEBVTT - Meta's $14.3B Scale Investment, Apple's New Siri Launch 0:00:02.520 --> 0:00:12.880 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.960 --> 0:00:16.759 from coast to coast, with Caroline Hide in New York 0:00:17.040 --> 0:00:19.040 and Edlavelow in San Francisco. 0:00:20.920 --> 0:00:25.160 This is Bloomberg Tech Coming up. Meta finally finalizes a 0:00:25.200 --> 0:00:28.560 fourteen billion dollar investment in Scale AI and has the 0:00:28.600 --> 0:00:33.000 CEO amping up its AGI efforts. Plus Adobe sales outlook. 0:00:33.040 --> 0:00:36.080 It tops estimates, but it's not enough to quell investors 0:00:36.120 --> 0:00:39.560 concern that it's losing the AI race, and reports of 0:00:39.640 --> 0:00:43.000 stable coin plans by the world's biggest retailers puts pressure 0:00:43.040 --> 0:00:45.280 on Visa a MasterCard. We discussed with the CEO of 0:00:45.320 --> 0:00:49.000 crypto firm Circle, but first we check in on what 0:00:49.040 --> 0:00:52.680 the markets are doing today. There is a clear geopolitical 0:00:52.760 --> 0:00:55.480 risk that is fund and center for investors. We think 0:00:55.520 --> 0:00:58.440 about what the Israeli A tacks on Iran means for 0:00:58.520 --> 0:01:00.880 the search for safety, and we do. Then that's that 0:01:00.880 --> 0:01:02.880 one hundred off by eight tenths of a percent. There 0:01:02.960 --> 0:01:07.560 are idiosyncratic news within the benchmark, but Bitcoin not your 0:01:08.160 --> 0:01:11.240 savior of choice at the moment, not the area to 0:01:11.240 --> 0:01:13.839 go for safety. We're currently off by nine tenths percent 0:01:13.920 --> 0:01:15.800 on bitcoin move on and have a look at some 0:01:15.840 --> 0:01:17.679 of the individual movers. Look, we've got to get into, 0:01:17.720 --> 0:01:21.480 in particular some tech news that is all about Meta, 0:01:21.520 --> 0:01:25.679 another aquahier, but this one costing more than fourteen billion dollars. 0:01:25.680 --> 0:01:28.120 We're off by five tens of percent, but generally the 0:01:28.160 --> 0:01:31.560 market likes the move, the spending of Meta on the 0:01:31.600 --> 0:01:35.080 future of AGI. Let's get to it all with Kurt Wagner, 0:01:35.160 --> 0:01:38.640 who's been breaking this story. Set by step. You brought 0:01:38.680 --> 0:01:41.000 us the idea that, of course Alexander Wang was going 0:01:41.040 --> 0:01:44.280 to be part of this crucial team that Mark Zuckerberg 0:01:44.440 --> 0:01:47.280 is forming. This does seem to be yet another example 0:01:47.319 --> 0:01:50.360 of an aquahier by a big tech company. 0:01:50.440 --> 0:01:52.760 It does because, as you mentioned, Caroline, there is that 0:01:52.840 --> 0:01:56.280 fourteen point three billion dollar investment. But Alexander Wang is 0:01:56.400 --> 0:01:59.680 joining Meta, so are some of the other employees from 0:01:59.760 --> 0:02:03.680 Scale Lai. So while Meta is obviously, you know, now 0:02:03.680 --> 0:02:06.440 a forty nine percent stakeholder, and Scale it's taking the 0:02:06.480 --> 0:02:10.200 CEO over to Meta, So a lot of people are 0:02:10.240 --> 0:02:12.960 sort of viewing this as a very expensive aquahier. Obviously, 0:02:12.960 --> 0:02:16.440 there's still Scale is still going to be operating independently. 0:02:16.720 --> 0:02:20.200 It's going to have an interim CEO. But you know, 0:02:20.320 --> 0:02:22.960 given the talent that is moving from Scale to Meta, 0:02:23.040 --> 0:02:25.400 this is this is a very expensive talent grab. And 0:02:25.480 --> 0:02:28.280 this is something that I think we've seen from Mark 0:02:28.360 --> 0:02:32.200 Zuckerberg before and something that he is clearly very very 0:02:32.200 --> 0:02:33.960 focused on AI right now. 0:02:34.040 --> 0:02:37.560 We've seen it from other key tech companies. This aquahar idea, 0:02:37.600 --> 0:02:40.960 the fact that maybe you skirt any regulatory oversight, particularly 0:02:40.960 --> 0:02:43.800 when perhaps metas in frontline. When it comes to the 0:02:43.880 --> 0:02:47.520 FTC investigation, You're thinking Microsoft with inflection, You're thinking Amazon 0:02:47.560 --> 0:02:51.040 with a debt to thinking of Google with character AI Kert, 0:02:51.360 --> 0:02:54.480 What does this show about the anxiety that Mark Zuckerberg 0:02:54.680 --> 0:02:55.360 has right now. 0:02:56.919 --> 0:03:00.600 Well, part of the momentum here is because he felt 0:03:00.800 --> 0:03:02.800 like they are behind, right. We had a story a 0:03:02.800 --> 0:03:04.840 couple of days ago about him building this new super 0:03:04.880 --> 0:03:07.880 intelligence AI team and that was really motivated by the 0:03:07.919 --> 0:03:10.799 fact that their lamafour launch back in April was underwhelming 0:03:10.840 --> 0:03:13.720 and that he felt that Meta was not keeping pace 0:03:13.800 --> 0:03:15.639 in the way that they should. So I think there's 0:03:15.639 --> 0:03:18.240 a real paranoia there. This is, you know, a sort 0:03:18.240 --> 0:03:19.960 of a classic Mark Stuck Colt Bring move for him 0:03:19.960 --> 0:03:22.280 to just get incredibly in the weeds on something that 0:03:22.320 --> 0:03:25.239 he feels his business is sort of lacking. But I 0:03:25.240 --> 0:03:27.360 also think it just speaks to the you know, the 0:03:27.520 --> 0:03:30.160 limit in terms of how much talent there is out 0:03:30.160 --> 0:03:32.440 there in the AI space, like really good talent. Like 0:03:32.480 --> 0:03:34.840 the fact that they're willing to spend this much on 0:03:34.920 --> 0:03:37.280 these on these folks sort of says that it's a 0:03:37.400 --> 0:03:40.560 very competitive landscape when it comes to hiring people. And 0:03:40.600 --> 0:03:42.720 I think we've seen that across the board, and it's 0:03:42.720 --> 0:03:44.640 only going to get tighter now that everyone sort of 0:03:44.680 --> 0:03:47.080 picked their various startup that they're backing here. 0:03:47.240 --> 0:03:49.440 It's interesting that we've already heard from Open Ai saying 0:03:49.440 --> 0:03:51.920 they're going to stick working with Scaleai, which is now 0:03:51.960 --> 0:03:54.480 going to be helmed by Jason Droges. He was previously 0:03:54.480 --> 0:03:57.200 the strategy officer, now him becomes a CEO. But talk 0:03:57.200 --> 0:04:00.600 to us about what Alexander wanglings in particular, He's got 0:04:00.840 --> 0:04:04.400 a very good way of networking, particularly on Capitol Hill. 0:04:05.720 --> 0:04:08.720 Yeah, so, you know, I've been told by several folks 0:04:08.760 --> 0:04:10.960 over the last week that Mark Zuckerberg just thinks that 0:04:11.120 --> 0:04:14.440 Alexander Wang is the best guy. You know, he thinks 0:04:14.440 --> 0:04:18.280 he is so talented, He's he's super bullish on this guy. 0:04:18.320 --> 0:04:21.640 I believe he's just twenty eight years old, and you're right, Caroline, 0:04:21.640 --> 0:04:24.919 he brings a great network. Everyone I've talked to is 0:04:24.960 --> 0:04:27.560 that this guy knows everybody in the AI space. He also, 0:04:27.600 --> 0:04:29.920 as you point out, knows folks on Capitol Hill. This 0:04:29.960 --> 0:04:32.120 is a time when I think Meta and Mark Zuckerberg 0:04:32.160 --> 0:04:35.479 in particular are trying to build relationships with the Trump administration. 0:04:35.920 --> 0:04:38.760 You know, we've seen them sort of announced plans to 0:04:38.800 --> 0:04:42.599 partner with Andreil on potential military tech. So it's a 0:04:42.600 --> 0:04:45.719 bit of a new, you know, direction for this company 0:04:45.800 --> 0:04:49.200 trying to get into perhaps government contracts, and I think 0:04:49.279 --> 0:04:54.320 Alexander Wang brings some of that connectivity to Meta and 0:04:54.360 --> 0:04:57.080 Mark Zuckerberg, and so in addition to the AI experience, 0:04:57.320 --> 0:04:58.840 you know, this is also someone who might be able 0:04:58.880 --> 0:05:00.000 to help him out relationship. 0:05:01.000 --> 0:05:05.280 Well. So far, investors have trusted the steerage of Mark Zuckerberg. 0:05:05.520 --> 0:05:08.680 Just a significant out performance of eighteen percent so far 0:05:08.720 --> 0:05:11.000 on the year Blue Most Kurt Wagner, thanks so much 0:05:11.040 --> 0:05:13.400 on all things Meta. Let's bring it out. Michael Reynolds 0:05:13.400 --> 0:05:16.000 is with US vice president and investment strategy at Glen Mead, 0:05:16.240 --> 0:05:19.479 manages forty five point six billion dollars in assets and 0:05:19.640 --> 0:05:22.200 just focus for a moment on the AI trade and 0:05:22.279 --> 0:05:26.080 this rush to spend by the hyperscalis of which Meta 0:05:26.160 --> 0:05:27.520 is now one. What do you make of this? 0:05:27.560 --> 0:05:30.479 Aquaha, thanks for having me. 0:05:30.640 --> 0:05:34.400 So we think without a doubt AI is transformational, and 0:05:34.440 --> 0:05:36.960 anyone who disagrees with that just probably hasn't been using 0:05:37.000 --> 0:05:39.880 it properly. But I think we're cautioning investors on our 0:05:40.000 --> 0:05:44.880 end to think through the connection between a transformational technology 0:05:45.279 --> 0:05:49.000 and what it actually leads to in terms of investment opportunities. 0:05:49.279 --> 0:05:52.599 History is littered with examples of great technology that just 0:05:52.800 --> 0:05:55.720 was not a good investment. Gutenberg invented the printing press, 0:05:55.760 --> 0:05:58.880 but he died in poverty. Rare Road bonds were notoriously 0:05:58.920 --> 0:06:01.760 poor investments. We're just not seeing a lot of pure 0:06:01.839 --> 0:06:04.840 plays in AI right now in the public markets. But 0:06:04.880 --> 0:06:08.240 perhaps if investors are turning to the private markets, that 0:06:08.400 --> 0:06:10.839 may be a little bit more plentiful with opportunities for 0:06:10.880 --> 0:06:13.719 AI as there's certainly going to be winners and losers 0:06:13.720 --> 0:06:15.640 in this space, but we're certainly in early stages. 0:06:15.960 --> 0:06:19.680 Okay, So how are investors getting access to the private 0:06:19.720 --> 0:06:23.159 markets on this particular area. Are they looking more to 0:06:23.240 --> 0:06:26.240 access well VC liquidity in some way. 0:06:27.640 --> 0:06:30.039 It would think it's a combination of trying to get 0:06:30.040 --> 0:06:32.359 that direct exposure with those that are actually building the 0:06:32.400 --> 0:06:36.000 software and delivering the AI tools that the end user 0:06:36.080 --> 0:06:38.320 is actually using, but also some of sort of the 0:06:38.520 --> 0:06:42.080 ancillary providers that can help on the margins, whether it's 0:06:42.240 --> 0:06:45.000 delivering the hardware on the tech or it's maybe the 0:06:45.040 --> 0:06:47.200 data centers that are delivering the energy that can help 0:06:47.240 --> 0:06:50.080 facilitate all of this. That the best solution is probably 0:06:50.080 --> 0:06:52.599 a combination of the two, as you don't want to 0:06:52.600 --> 0:06:55.120 sort of put all your bets on one side of 0:06:55.160 --> 0:06:57.520 a trade here and end up missing some of the 0:06:57.520 --> 0:07:01.080 bigger beneficiaries that we're perhaps a little long intuitive as 0:07:01.080 --> 0:07:03.320 you were thinking through it in real time, Mike. 0:07:03.160 --> 0:07:05.800 So's sticking with public markets, you're seeing people trying to 0:07:05.800 --> 0:07:08.000 bet on whether it be the energy stack, whether it 0:07:08.040 --> 0:07:10.840 be the AI hardware or the software stack. From an 0:07:10.880 --> 0:07:12.960 equity perspective, or they're going into the bob market. 0:07:12.720 --> 0:07:15.360 Too, a little bit of both. 0:07:15.440 --> 0:07:17.920 I think the equity markets are probably a little sexier 0:07:17.920 --> 0:07:22.320 from that perspective. Data centers have been really great performers 0:07:22.360 --> 0:07:24.360 over the last couple of years in expectation that there's 0:07:24.400 --> 0:07:26.960 just going to be a big energy sink to be 0:07:27.000 --> 0:07:30.400 able to use these models at scale. We've seen a 0:07:30.400 --> 0:07:32.400 little bit of pushback on that, given some of the 0:07:32.440 --> 0:07:35.160 opportunities we've seen coming out of Deep Seek where they 0:07:35.160 --> 0:07:36.960 were pay able to perhaps do things a little more 0:07:36.960 --> 0:07:40.400 efficiently and pull back on some of those expectations. But 0:07:40.440 --> 0:07:42.920 it's probably a little bit of both on both sides 0:07:43.120 --> 0:07:46.080 of the capital markets, stocks and bonds, where there's going 0:07:46.120 --> 0:07:49.280 to be opportunities here driven by technological innovation. 0:07:49.400 --> 0:07:51.160 I like that you bring that up, Mike, because it 0:07:51.200 --> 0:07:54.400 actually was quite recently that we were all panicking around 0:07:54.560 --> 0:07:57.480 actually whether you needed the scale of investment, you needed 0:07:57.480 --> 0:08:00.280 a scale of infrastructure because of Deep Seat. Well that's 0:08:00.280 --> 0:08:02.400 almost been put to bed. You look at Oracles numbers 0:08:02.440 --> 0:08:05.920 this week. You think about the anxiety around supply. Really, 0:08:06.080 --> 0:08:09.040 that's what the nature of the story has been, people 0:08:09.360 --> 0:08:12.680 can't build it fast enough. Is that where we're back 0:08:12.680 --> 0:08:14.520 to in terms of the market psyche. 0:08:15.960 --> 0:08:18.720 To some extent, I think over the last year or so, 0:08:18.800 --> 0:08:21.600 perhaps pre Deep Seek, there was a lot of concerns 0:08:21.600 --> 0:08:24.080 that just wasn't enough energy to go around, that some 0:08:24.160 --> 0:08:26.120 of these data centers were going to have to build 0:08:26.160 --> 0:08:30.720 out alternative energy sources, maybe flirting with nuclear, but it's 0:08:30.800 --> 0:08:33.360 really I think it falls into the historical precedence where 0:08:33.400 --> 0:08:36.160 when you have a breakthrough technology, it often seems like 0:08:36.200 --> 0:08:38.760 there's a lot of startup costs to really break through 0:08:39.000 --> 0:08:42.360 and get the technology working at scale. But innovation is 0:08:42.400 --> 0:08:45.120 a beautiful thing and finding things, finding ways to do 0:08:45.160 --> 0:08:48.720 things more effectively and efficiently always just seems to occur. 0:08:48.800 --> 0:08:51.400 I think that's happening in real time this year, and 0:08:51.600 --> 0:08:53.920 we could continue to expect that to unfold over the 0:08:53.960 --> 0:08:56.120 years ahead, just finding better ways to build it and 0:08:56.120 --> 0:08:57.160 building a better mousetrap. 0:08:57.400 --> 0:08:59.360 Okay, what about the mousetop? Is it all about the 0:08:59.440 --> 0:09:03.760 United States? Are you looking at other opportunities? Are your investors, 0:09:03.760 --> 0:09:05.600 the people that you're speaking to, wanting to get out 0:09:05.640 --> 0:09:06.600 into Europe and Asia? 0:09:08.320 --> 0:09:08.520 Yeah? 0:09:08.559 --> 0:09:12.400 There was certainly this theory that US exceptionalism in Ai was, 0:09:12.920 --> 0:09:15.559 you know, an uncrackable theme, and I think there are 0:09:15.640 --> 0:09:18.720 some sort of fissures into that theme this year, where 0:09:18.800 --> 0:09:20.880 again you had the deep seek news out of China. 0:09:21.440 --> 0:09:23.920 You have several other countries that are really doing a 0:09:23.960 --> 0:09:28.479 lot to incentivize domestic development of these types of technologies. 0:09:28.600 --> 0:09:32.920 It's happening in the UAE and European Union, many parts 0:09:32.920 --> 0:09:35.679 of Asia. They're trying to build out this technology. So 0:09:35.720 --> 0:09:37.480 it's you know, is the US going to have a 0:09:37.520 --> 0:09:41.720 monopoly on this technology for the foreseeable future remains unseen, 0:09:41.840 --> 0:09:44.600 But you know there's quite a few players that are 0:09:44.600 --> 0:09:48.480 emerging in this market that could end up sharing market 0:09:48.480 --> 0:09:49.520 share on this at. 0:09:49.400 --> 0:09:51.680 G forty two making inroads into Europe and the UK 0:09:51.760 --> 0:09:54.000 will discuss that later in the show. You've had Jensen 0:09:54.000 --> 0:09:56.880 Wang over there in the United Kingdom and Europe making deals. 0:09:57.240 --> 0:09:59.760 Mike iland it here. Therefore, because we've gone global, and 0:10:00.040 --> 0:10:02.600 day is a global day in nature, how people are 0:10:02.600 --> 0:10:06.760 feeling about potential increased tensions in the Middle East, maybe 0:10:06.800 --> 0:10:09.640 even more, How are your investors responding to that at 0:10:09.640 --> 0:10:10.359 this moment. 0:10:11.600 --> 0:10:14.640 So we're cautioning our investors not to react too quickly 0:10:14.840 --> 0:10:18.559 to unfolding geopolitical conflict here so far, I think we're 0:10:18.600 --> 0:10:23.640 following a pretty standard geopolitical blueprint where markets are reacting 0:10:23.720 --> 0:10:27.840 to the uncertainty that just didn't exist a few hours ago. 0:10:29.080 --> 0:10:32.000 But in general, markets tend to see through this type 0:10:32.000 --> 0:10:34.520 of thing, especially for those countries that are not directly 0:10:34.520 --> 0:10:37.400 involved this time around. I think inflation is going to 0:10:37.400 --> 0:10:40.400 be really important to watch here. If energy infrastructure in 0:10:40.400 --> 0:10:43.559 the region starts to come in the crosshairs figuratively or 0:10:43.600 --> 0:10:48.440 perhaps even literally speaking, that could have potential inflationary impacts 0:10:48.440 --> 0:10:51.559 for energy, which is just not just an input cost 0:10:51.640 --> 0:10:54.320 for a direct input costs for consumers, but also for 0:10:54.640 --> 0:10:57.080 a lot of the goods they consume also consume energy, 0:10:57.760 --> 0:11:00.600 So it's we're looking at that pretty close. As well 0:11:00.600 --> 0:11:02.719 as the shipping lanes throughout that region, which can be 0:11:02.760 --> 0:11:05.280 pretty important for global trade. Those are going to be 0:11:05.280 --> 0:11:06.680 really important to watch over the weekend. 0:11:07.240 --> 0:11:09.800 Michael Raynolds, we hope you get some rest over the weekend, 0:11:09.960 --> 0:11:12.240 Vice President of the Investment Strategy at Glen Mead. We 0:11:12.320 --> 0:11:16.600 appreciate your time. Now let's discuss that key story, Israel 0:11:16.920 --> 0:11:20.640 launching multiple strikes across Iran, targeting nuclear facilities, killing top 0:11:20.679 --> 0:11:25.040 military officials. President Trump urging Iran to accepting nuclear deal 0:11:25.280 --> 0:11:28.080 in an effort to avoid further attacks. Iran vowing to 0:11:28.120 --> 0:11:31.560 continue its nuclear program despite the Israeli strikes. For more, 0:11:31.640 --> 0:11:34.680 we turn to Bloombogs. Jomana Vassetchi joins us. Now actually 0:11:34.720 --> 0:11:37.360 based in London just for this week and Jomana you're 0:11:37.440 --> 0:11:39.440 usually in the Middle East, And it's interesting we're getting 0:11:39.440 --> 0:11:42.480 a US official telling Bloomberg News that indeed we are 0:11:42.559 --> 0:11:45.520 still seeing talks lightly to be conducted between the United 0:11:45.559 --> 0:11:46.320 States in Iran. 0:11:48.080 --> 0:11:51.719 Yes, perhaps there is a potential for a de escalation here, 0:11:51.800 --> 0:11:54.080 especially as those sixth round of talks between US and 0:11:54.160 --> 0:11:56.840 Iran we're slated to take place in Oman this weekends. 0:11:57.120 --> 0:11:59.559 Giving the events over the last twenty four hours, at 0:11:59.600 --> 0:12:03.640 the the eventual possibility of those happening was thrown into doubt. 0:12:03.760 --> 0:12:05.920 But of course what we have seen, just as a 0:12:05.920 --> 0:12:09.920 recap is the most significant attack on Iran going back 0:12:09.960 --> 0:12:10.680 to the eighties. 0:12:10.720 --> 0:12:11.880 What Israel did in the. 0:12:11.840 --> 0:12:15.000 Last twenty four hours supersedes all of the events that 0:12:15.120 --> 0:12:19.319 happened last year, both back in April and in October, 0:12:20.200 --> 0:12:23.360 and really constitutes a major blow to Iran, not just 0:12:23.440 --> 0:12:26.440 in terms of the fact that Israel went after specific 0:12:26.559 --> 0:12:29.480 nuclear facilities and even though no radiation has actually been 0:12:29.480 --> 0:12:32.120 recorded from those nuclear facilities, what they did succeed at 0:12:32.160 --> 0:12:35.839 doing is that taking out some senior IRGC. So these 0:12:35.840 --> 0:12:40.520 are Revolutionary Guard commanders, the chief of staff of the 0:12:40.640 --> 0:12:44.280 Armed forces. Some of these people are key masterminds behind 0:12:44.679 --> 0:12:48.079 the attacks that had been conducted on Israel and the 0:12:48.160 --> 0:12:52.400 last year, but also on the IRANQO facilities in Saudi 0:12:52.400 --> 0:12:55.120 Arabia back in twenty nineteen. So some of the key 0:12:55.120 --> 0:12:57.120 players have been taken out with these strikes. Now where 0:12:57.200 --> 0:13:00.880 we go from here. Iran has vowed a harsh retaliation 0:13:01.320 --> 0:13:04.000 already this morning they fired over one hundred drones directed 0:13:04.040 --> 0:13:04.800 towards Israel. 0:13:04.840 --> 0:13:06.280 Those were mainly intercepted. 0:13:06.840 --> 0:13:09.240 But the question from here onwards is how many more 0:13:09.400 --> 0:13:13.000 ballistic missiles they're looking to send towards Israel, whether or 0:13:13.040 --> 0:13:16.760 not this will encapsulate other proxies in the region as well, 0:13:16.760 --> 0:13:20.360 whether the likes of Hezbalahthi's Hamas may get involved in 0:13:20.400 --> 0:13:25.319 the retaliation, and then also whether or not the international 0:13:25.400 --> 0:13:28.520 community look to de escalate from this point onwards. And 0:13:28.559 --> 0:13:31.360 to your point, US plays a significant role here because 0:13:31.640 --> 0:13:35.400 of the possibility of a furthering of those nuclear discussions. 0:13:35.520 --> 0:13:38.560 And let's see whether Iran actually does come to the 0:13:38.600 --> 0:13:39.480 table in good faith. 0:13:40.200 --> 0:13:44.839 Jermanavasseatchi, we really appreciate your time today. Thank you. Now 0:13:44.840 --> 0:13:47.600 coming up, we go back to tech. Apple sets a 0:13:47.640 --> 0:13:51.720 new target for revamp Siri or on that next this 0:13:51.760 --> 0:14:01.600 is pretty bad Tech said to be targeting a new 0:14:01.800 --> 0:14:04.920 internal date of spring twenty twenty six where it's revamped 0:14:04.920 --> 0:14:08.800 SyRI upgrade of the multiple delays. Now that's according to sources. 0:14:09.200 --> 0:14:11.360 Let's get to our own Mark German for more. It 0:14:11.440 --> 0:14:14.720 was but this week that WWDC left us hanging on 0:14:14.800 --> 0:14:16.600 Siri and you bring us some clarity. 0:14:17.920 --> 0:14:20.320 That's exactly right. So they did not talk about serie 0:14:20.400 --> 0:14:24.440 features pretty much at all at WWDC other than to 0:14:24.440 --> 0:14:26.720 say they're still delayed and they'll be arriving in the 0:14:26.720 --> 0:14:29.640 coming year. So I looked into it, and the new 0:14:29.720 --> 0:14:32.800 launch timeframe is likely going to be as part of 0:14:32.840 --> 0:14:35.640 what will be known as iOS twenty six point four, 0:14:36.240 --> 0:14:39.760 and that's currently scheduled for the springtime next year, so 0:14:39.800 --> 0:14:43.560 around March April, and this will deliver the delayed serie features. 0:14:43.600 --> 0:14:46.520 These are the features e to an AI overhaul for 0:14:46.520 --> 0:14:49.120 the voice assistant that we're announced back in June of 0:14:49.120 --> 0:14:51.920 twenty twenty four. So the three main features are the 0:14:51.920 --> 0:14:55.880 ability to tap into your personal data to fulfill serie queries. 0:14:56.240 --> 0:14:59.040 So if I asked for a question such as what 0:14:59.200 --> 0:15:02.520 was the big I sent Caroline last week. It would 0:15:02.520 --> 0:15:04.560 be able to pull up that video or a podcast 0:15:04.640 --> 0:15:08.120 or a song. If I wanted to get analysis of 0:15:08.120 --> 0:15:10.760 something on my screen using Siri, it could do that 0:15:10.840 --> 0:15:14.840 as well. And it has precise control of applications. So 0:15:15.040 --> 0:15:17.880 for instance, I could say, pull up this photo of 0:15:18.160 --> 0:15:22.120 Caroline and edit it and send it to her as 0:15:22.160 --> 0:15:25.600 well as a few other people in our group chat. Right. Yeah, 0:15:25.720 --> 0:15:29.440 those are impressive and big features, all delayed now coming 0:15:29.480 --> 0:15:30.400 about nine months from now. 0:15:30.440 --> 0:15:32.240 I'm waiting for that photo Mark put it on our 0:15:32.280 --> 0:15:35.680 group chat. But Mark, I'm also just remind us what 0:15:35.800 --> 0:15:38.120 the problem has been here? Why has it been so 0:15:38.200 --> 0:15:39.440 difficult to integrate with Siri? 0:15:40.880 --> 0:15:44.240 Apple has been facing some serious engineering and management problems. 0:15:44.240 --> 0:15:46.160 But just to break it down and not to get 0:15:46.200 --> 0:15:50.560 too technical, essentially, Apple had to split Siri into two brains, right. 0:15:50.840 --> 0:15:54.640 The first brain, the more basic one, has to do 0:15:54.680 --> 0:15:57.840 with features like setting alarms, phone calls, all the legacy stuff. 0:15:58.440 --> 0:16:01.280 Then they built a second brain, more based on large 0:16:01.320 --> 0:16:04.400 language models at the core of modern AI, for those 0:16:04.400 --> 0:16:07.720 more advanced features I talked about, right, But making one 0:16:07.800 --> 0:16:11.480 SERI that has two brains combined to do two different 0:16:11.480 --> 0:16:16.320 set of actions had compatibility problems in real world use, 0:16:16.560 --> 0:16:19.280 and I'm told it didn't work properly up to a 0:16:19.320 --> 0:16:21.840 third of the time, which is a lot based on 0:16:21.880 --> 0:16:24.080 how much usage these things are going to get. And 0:16:24.160 --> 0:16:27.200 so what Apple is doing now is rebuilding the underlying 0:16:27.320 --> 0:16:31.160 serie architecture to have one brain based on that newer 0:16:31.200 --> 0:16:34.760 generation technology to handle everything, and that would eliminate the 0:16:34.760 --> 0:16:38.080 compatibility issues, but obviously is going to take more time 0:16:38.160 --> 0:16:38.640 to put. 0:16:38.440 --> 0:16:41.960 Together brilliant storytelling. Marcum and thank you so much for 0:16:42.000 --> 0:16:44.640 the breaking news as well. But let's turn our attention 0:16:44.680 --> 0:16:47.920 to Adobe. Now shares under pressure after the company actually 0:16:47.920 --> 0:16:50.520 gave a sales outlook that was pretty good, but it 0:16:50.520 --> 0:16:52.880 failed to come invest as skeptical about its ability to 0:16:52.960 --> 0:16:56.400 really compete with the AI focused startups. Whimberg's Brady Ford 0:16:56.480 --> 0:16:58.560 joins us now and look shares are off by five 0:16:58.600 --> 0:17:01.000 percent worst days it's March twenty twenty five. Even though 0:17:01.000 --> 0:17:01.720 they've beaten they. 0:17:01.720 --> 0:17:04.840 Raised, right. I mean, so Adobe is this kind of 0:17:04.880 --> 0:17:07.879 poster child of a company which was the kind of 0:17:08.480 --> 0:17:11.520 leader of their industry for twenty years. Nobody could touch them, 0:17:11.760 --> 0:17:14.440 And the question is okay AI's coming. A lot of 0:17:14.480 --> 0:17:15.399 these apps are much. 0:17:15.280 --> 0:17:17.480 More lightweight, cheaper, easier to use. 0:17:18.000 --> 0:17:21.600 Does Adobe stay relevant That's a big question, and investors 0:17:21.640 --> 0:17:23.960 are not convinced. I mean, I think they're down ten 0:17:24.000 --> 0:17:27.320 percent over the last year Adobe's stock and down further today. 0:17:27.720 --> 0:17:30.480 And it's all because of those AI disruption anxieties. 0:17:30.720 --> 0:17:33.480 You're thinking mid journey for example, we're thinking even Soora 0:17:33.600 --> 0:17:36.320 making roads when it comes to making the video side 0:17:36.320 --> 0:17:39.600 of the equation. But Firefly has it been getting some use? 0:17:39.680 --> 0:17:42.720 What was it like two point four billion content stayed 0:17:43.000 --> 0:17:45.080 over the course of it's being used out there in 0:17:45.080 --> 0:17:46.840 the wild. It's been getting used. 0:17:46.840 --> 0:17:48.560 But when I was growing up, if you wanted to 0:17:48.600 --> 0:17:50.639 be like a cool creative person, you had to go 0:17:50.680 --> 0:17:54.520 find a copy of photoshops somewhere Adobe Premier's video editing. 0:17:54.800 --> 0:17:56.720 It's not that way anymore. If you talk to people 0:17:56.720 --> 0:17:58.960 who are young, who are really kind of making cutting edge, 0:17:59.000 --> 0:18:02.560 aren't there using the like these mid journeys Google's vo 0:18:02.680 --> 0:18:04.640 I mean, when it comes to the enterprise level where 0:18:04.680 --> 0:18:07.640 you have a CIO who's worried about cybersecurity, they're still 0:18:07.680 --> 0:18:11.960 buying Adobe. But the question is that next generation, where 0:18:12.040 --> 0:18:13.200 is the mind share going. 0:18:13.920 --> 0:18:15.879 What was also interesting is they tried to win the 0:18:15.920 --> 0:18:19.040 IP battle. I'm trying and say, look, we've got you covered. 0:18:19.080 --> 0:18:20.920 You don't need to be worried. We'll even pay out 0:18:20.960 --> 0:18:23.920 if we find that any of the images you're creating 0:18:23.920 --> 0:18:26.600 are based on some other IP. But people aren't worried 0:18:26.600 --> 0:18:27.760 about that so much anymore. 0:18:27.840 --> 0:18:30.479 It's an interesting question. I mean, we saw Disney suing 0:18:30.520 --> 0:18:32.880 mid Journey a couple of days ago. I'm sure the 0:18:32.920 --> 0:18:35.080 CIO of our company or others is not gonna go 0:18:35.119 --> 0:18:37.800 and pay for a company getting sued by Disney. But 0:18:37.920 --> 0:18:41.000 at this current moment, it's still unsettled. It appears that 0:18:41.160 --> 0:18:44.920 the anxieties around hey, scraping data to build models, is 0:18:44.960 --> 0:18:47.720 that gonna be okay? It seems like a lot of 0:18:47.760 --> 0:18:49.800 buyers at this point are swayed. 0:18:49.520 --> 0:18:52.920 Against it, like I'm more convincing to do Brinberg's berdie 0:18:52.920 --> 0:19:02.520 Ford brilliant as always, Thank you. AMD CEO Lisa Soon 0:19:02.840 --> 0:19:06.240 said her company's latest day I processes can challenge in 0:19:06.320 --> 0:19:09.240 video chips in a market she expects to saw past 0:19:09.240 --> 0:19:12.440 five hundred billion dollars in the next three years now. 0:19:12.440 --> 0:19:14.399 This is as the company aims to play catch up 0:19:14.400 --> 0:19:16.760 with in video in AI accelerators with its new products. 0:19:16.880 --> 0:19:19.800 Let's talk about them. Bring meg Intelligence analyst Contrins Savani's 0:19:19.800 --> 0:19:21.600 hey with us. You're at the event, you're assessing what's 0:19:21.640 --> 0:19:25.280 been discussed the Mi three fifty. Will it be fast 0:19:25.400 --> 0:19:27.560 enough to stop winning more market share? 0:19:29.000 --> 0:19:31.119 I mean, if you look at their event and announcement 0:19:31.160 --> 0:19:34.280 in isolation, we think there were many positives. One the 0:19:34.359 --> 0:19:37.960 customer adoption is broadening some of the new names like Xai, 0:19:38.119 --> 0:19:40.720 open Ai, Oracle. The deal with Oracle, which we think 0:19:40.720 --> 0:19:43.679 will be the largest three to fifty five deals so 0:19:43.760 --> 0:19:46.919 far yet for and will show results in the second half. 0:19:47.280 --> 0:19:51.040 These were really surprisingly positive. Remember these have been traditionally 0:19:51.200 --> 0:19:55.359 and VIDIA only houses, so them getting to these customers 0:19:55.400 --> 0:19:58.320 is a pretty big deal. They showed continued progress on 0:19:58.359 --> 0:20:00.879 the hardware with the announcement of the roadmap with the 0:20:01.200 --> 0:20:04.840 four hundred Elio server rack, and it's more important the software, 0:20:05.000 --> 0:20:07.440 which they have been lagging until as of last year. 0:20:07.960 --> 0:20:11.440 So a what a lot of impressive progress on all aspects. 0:20:11.600 --> 0:20:15.520 But the challenge is the competition also continues to speed ahead, 0:20:15.680 --> 0:20:16.880 and they have had a headstart. 0:20:17.480 --> 0:20:21.080 They have and boy does everyone just relentlessly compare them 0:20:21.240 --> 0:20:24.399 to Jensen's powerhouse. You say on your note that really 0:20:24.440 --> 0:20:26.760