WEBVTT - Tesla, Google Earnings and Exclusive Interview with Meta CEO 0:00:02.600 --> 0:00:11.680 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.520 --> 0:00:12.440 From the heart of where innovation, money and power co 0:00:12.640 --> 0:00:14.800 line in Silicon Valley n Beyond. 0:00:15.160 --> 0:00:18.680 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:18.720 --> 0:00:36.680 Ludlow, live from London and San Francisco. This is Bloomberg Technology, 0:00:36.800 --> 0:00:39.239 coming up the first of the Magnificent seven. 0:00:39.040 --> 0:00:40.280 Gear up to report results. 0:00:40.520 --> 0:00:44.320 We've got you covered, plus whiz walks away from Google's 0:00:44.320 --> 0:00:45.680 twenty three billion dollar offer. 0:00:45.760 --> 0:00:50.199 Details ahead, and we bring you our exclusive interview with 0:00:50.360 --> 0:00:52.520 Meta CEO Mark Zuckerberg. 0:00:53.120 --> 0:00:58.400 Spotify up twelve percent in the session, subscribers paid, subscribers 0:00:58.480 --> 0:01:01.080 up twelve percent year on year. There's a lot of 0:01:01.120 --> 0:01:03.520 focus from the street on all of the cost saving 0:01:03.560 --> 0:01:06.320 measures that they took and the bottom line, but let's 0:01:06.319 --> 0:01:09.280 stick with the Spotify story. The company releasing those two 0:01:09.360 --> 0:01:12.360 Q earnings this morning, bringing Bloombergs, Lucas Shaw, Lucas Leeds 0:01:12.520 --> 0:01:15.800 screen Time, which is our coverage of the entertainment industry 0:01:16.040 --> 0:01:18.360 and all things streaming, and Lucas we are so back 0:01:18.800 --> 0:01:20.760 streaming is back taught me through Spotify. 0:01:21.400 --> 0:01:24.240 Yeah, both Netflix and Spotify having very good earnings. Look, 0:01:24.280 --> 0:01:27.480 Spotify is finally starting to look like a profitable business. 0:01:27.520 --> 0:01:29.759 I think that's what investors are excited about. They had 0:01:30.520 --> 0:01:34.440 both profit and margin. That was a head of expectations, 0:01:34.440 --> 0:01:37.880 I believe, and perhaps most notably for them, they raised 0:01:37.880 --> 0:01:41.319 prices and still beat on their premium subscriber edition. So 0:01:41.360 --> 0:01:43.959 it feels like their ability to raise prices now and 0:01:44.040 --> 0:01:46.280 going forward will be very strong, which is good news. 0:01:46.120 --> 0:01:47.000 For everyone looking at it. 0:01:47.400 --> 0:01:49.560 You know, they've done what Wall Street wanted, which is 0:01:49.600 --> 0:01:53.400 cut costs and start living profits, and. 0:01:53.320 --> 0:01:56.080 They have really focused in on the profitability over and above, 0:01:56.160 --> 0:02:00.600 perhaps more broadly just subscriber growth in totality lucas there 0:02:00.640 --> 0:02:02.640 was a little bit of weakness on the bigger, larger 0:02:02.720 --> 0:02:04.640 number of those that aren't just paying premium. 0:02:05.800 --> 0:02:06.040 Yeah. 0:02:06.080 --> 0:02:09.320 I mean they've I've been surprised over the last couple 0:02:09.360 --> 0:02:11.840 of years at their ability to continue to grow their 0:02:11.840 --> 0:02:15.160 customer base, not just premium but the free. They've had 0:02:15.200 --> 0:02:17.919 a lot of success in India and Southeast Asia, which 0:02:17.919 --> 0:02:20.840 is I think part of how they've done it. But 0:02:20.960 --> 0:02:23.799 they've looked, they've they've rained in the spending on podcasting. 0:02:23.840 --> 0:02:26.000 They are investing a fair amount in audiobooks, and I 0:02:26.000 --> 0:02:28.799 think there's some skepticism still as to how exactly that 0:02:28.840 --> 0:02:29.880 will sort itself out. 0:02:30.919 --> 0:02:33.079 But it's a company and it's a product that people 0:02:33.120 --> 0:02:33.560 really like. 0:02:33.639 --> 0:02:37.120 They're not canceling. Spotify has pricing power, and I think 0:02:37.200 --> 0:02:40.240 that though there have been concerns about how that business 0:02:40.280 --> 0:02:44.400 would look, it's starting to feel like a company that 0:02:44.800 --> 0:02:46.040 investors can rely on. 0:02:47.480 --> 0:02:49.239 Lucas, This might be a little out of left field, 0:02:49.240 --> 0:02:51.560 but I'm still really focused on podcasts. I just find 0:02:51.600 --> 0:02:55.560 the industry to be so vibrant. If you track the newsflow, 0:02:55.600 --> 0:02:58.320 a lot of like individual names doing licensing deals for 0:02:58.360 --> 0:03:02.480 themselves their own properties Spotify. Do they have anything to 0:03:02.520 --> 0:03:03.320 say about that? 0:03:04.200 --> 0:03:08.320 Well, Look, Spotify is now content to be a neutral 0:03:08.400 --> 0:03:11.200 distributor of podcasts, right. They spent a bunch of money 0:03:11.520 --> 0:03:16.040 buying podcast networks, funding originals, kind of securing exclusive rights 0:03:16.080 --> 0:03:19.160 to shows because they use those to those podcasts and 0:03:19.160 --> 0:03:21.320 those deals to bring people in and to get people 0:03:21.360 --> 0:03:21.840 listening to. 0:03:21.880 --> 0:03:24.480 Podcasts on Spotify. That is now happening. 0:03:24.520 --> 0:03:27.000 Spotify feels less of a need to pay for people 0:03:28.040 --> 0:03:31.000 and feels like it can, you know, just benefit from 0:03:31.040 --> 0:03:33.040 from ad sales from shows that it doesn't control or 0:03:33.080 --> 0:03:34.840 pay for it. 0:03:34.920 --> 0:03:38.080 So sweetish Juggernaut, Lucas Shaw we so appreciate you bring us. 0:03:37.960 --> 0:03:38.680 All things Spotify. 0:03:38.800 --> 0:03:41.880 Meanwhile, sticking with results out of Europe and it's SAP. 0:03:42.320 --> 0:03:44.920 See Christian Kind join Bloomberg to weigh in on his 0:03:45.000 --> 0:03:45.760 company's results. 0:03:45.760 --> 0:03:46.360 Just take a listen. 0:03:47.080 --> 0:03:50.520 We are not only focusing on moving customers to the cloud. 0:03:50.800 --> 0:03:53.480 We look into their business model transformation. So when you 0:03:53.560 --> 0:03:56.960 talk about SEP, it's all about how can you correctually 0:03:57.000 --> 0:03:59.480 quote your business. I mean, take take x on Mobile, 0:03:59.520 --> 0:04:01.920 one of our largest the customers now in the cloud. 0:04:02.200 --> 0:04:05.320 They are moving towards the new blanagies and our software 0:04:05.480 --> 0:04:07.320 is key for that. Or when you talk about the 0:04:07.360 --> 0:04:11.280 resiliency of supply chains, we infuse AI. We are connecting 0:04:11.520 --> 0:04:15.440 your supply chain with this operations of thousands of your 0:04:15.480 --> 0:04:19.359 suppliers and that's why SEP is so well in these days. 0:04:21.120 --> 0:04:23.440 Let's bring in Blimberg Sonia in for more on this 0:04:23.640 --> 0:04:25.800 and Sonia shares the record high. 0:04:25.920 --> 0:04:28.560 Is it all about AI? Yes? 0:04:29.160 --> 0:04:33.080 AI definitely plays a key role in SAP financial performance 0:04:33.160 --> 0:04:37.200 and business development. We've seen some good growth on the 0:04:37.200 --> 0:04:41.159 cloud revenue and also the backlock seems very healthy, so 0:04:41.200 --> 0:04:43.080 we can expect a lot more of the growth to 0:04:43.080 --> 0:04:44.080 come later this year. 0:04:44.440 --> 0:04:44.960 And in the. 0:04:44.920 --> 0:04:49.640 Coming months as the AI had a significant role in 0:04:49.680 --> 0:04:53.880 attracting new customers as well as incentivizing the shift from 0:04:53.920 --> 0:05:02.920 the on premise solution to the more lucrative cloud business. 0:05:00.279 --> 0:05:02.440 On your end out of Europe. Thank you very much. 0:05:02.680 --> 0:05:06.920 Another tech company that's reporting today, Tesla. Let's discuss what 0:05:06.960 --> 0:05:09.880 to expect with Drin Hanley Warren, Capital CEO and head 0:05:09.880 --> 0:05:13.920 of research and getting myself organized, putting my posts in 0:05:14.080 --> 0:05:15.919 for the blog that will run later today. And I 0:05:15.960 --> 0:05:18.680 think a big focus is going to be FSD and Hang, 0:05:19.040 --> 0:05:20.960 You've got a particularly interesting. 0:05:20.560 --> 0:05:21.000 View on that. 0:05:21.080 --> 0:05:23.920 Why you watch the FSD so closely. 0:05:25.520 --> 0:05:28.800 Because the car Selle data are very transparent, and it's 0:05:28.880 --> 0:05:34.280 obvious that the car sales has hit a war, whether 0:05:35.120 --> 0:05:38.680 whether in California, in China, in Europe. So in California 0:05:38.720 --> 0:05:42.640 the data are very transparent. Cells down twenty four percent 0:05:42.760 --> 0:05:45.599 year over year in Q two and California being twenty 0:05:45.600 --> 0:05:46.360 five percent of. 0:05:46.320 --> 0:05:47.960 The US ED sales. 0:05:48.480 --> 0:05:52.160 In China it's down seven percent. That's on top of 0:05:52.520 --> 0:05:54.560 very aggressive promotions. 0:05:55.240 --> 0:05:56.919 In Europe, it's a different story. 0:05:57.040 --> 0:05:58.159 There's a terriff. 0:05:57.960 --> 0:06:01.839 Coming up now, the Chinese may car going to Europe 0:06:02.160 --> 0:06:07.160 starting dismals will face twenty percent increase in terror. So 0:06:07.960 --> 0:06:12.599 at this cross current, Tesla all of a sudden pivoted 0:06:12.720 --> 0:06:17.680 its story from EB sales to FSD. Essentially, FSD is 0:06:17.680 --> 0:06:20.160 a story of Okay, you buy a car, I give 0:06:20.200 --> 0:06:24.039 you a driver. So that's supposed to be a differentiation 0:06:24.520 --> 0:06:28.320 for Tesla car to you know, get more share in 0:06:28.360 --> 0:06:32.839 the market. But it is argue, after speaking extensively to 0:06:33.200 --> 0:06:37.920 the researchers in the field as well as the competition's 0:06:38.000 --> 0:06:43.719 AI effort, that you know, it's a very immature product. 0:06:43.960 --> 0:06:45.680 It takes time to get. 0:06:45.520 --> 0:06:50.160 A higher quality data, probably a rework of the underlying 0:06:50.320 --> 0:06:54.800 narrow AI system and waiting for more GPU cluster for 0:06:54.920 --> 0:06:55.560 this to work. 0:06:57.200 --> 0:06:59.640 Full self driving has actually been something both said and 0:06:59.680 --> 0:07:01.720 I'm in with a lot lucky enough to be able 0:07:01.760 --> 0:07:04.880 to do so. But why do you think the underlying technology, 0:07:04.960 --> 0:07:07.560 the overall scale of investment the Tesla needs to make 0:07:08.000 --> 0:07:10.200 it's so much larger than the market is factoring in 0:07:10.280 --> 0:07:13.040 because this is always the long term bad that Tesla 0:07:13.120 --> 0:07:16.440 is an AI play. 0:07:15.680 --> 0:07:20.280 Yep, because a Tesla's AI vision is a little bit 0:07:20.320 --> 0:07:23.760 different from everyone else. Everyone else in the industry relies 0:07:23.800 --> 0:07:28.480 on sensors in addition to the underlying AI software. But 0:07:28.600 --> 0:07:32.120 Tesla wants to differential yourself as a unique play in 0:07:32.200 --> 0:07:38.520 autonomus AI therefore markets as the anti end vision only 0:07:39.520 --> 0:07:42.800 AI play. But if you talk to people in the 0:07:43.160 --> 0:07:45.440 in the area, they'll tell you that it's a very 0:07:45.440 --> 0:07:50.720 difficult route because it needs a lot more expensive data 0:07:50.800 --> 0:07:55.840 input and it requires a much more expensive AI system 0:07:56.240 --> 0:07:59.880 to truly get you to L five. So now you 0:08:00.080 --> 0:08:04.880 how there's a very big operation domain design and you 0:08:04.960 --> 0:08:09.320 have limited hardware tour, but you want to achieve L five. 0:08:09.680 --> 0:08:12.320 So that's a very very tall order. 0:08:13.520 --> 0:08:15.360 Speaking of hardware, we were just showing some of the 0:08:15.360 --> 0:08:18.040 things at the top of mind for retail investors. Right 0:08:18.040 --> 0:08:20.960 they have a platform, say dot com, they can vote 0:08:21.400 --> 0:08:25.600 or up vote their questions. What's missing from that is Robotaxi. 0:08:26.200 --> 0:08:28.960 How critical is it that ehlon mask gives us a 0:08:29.080 --> 0:08:31.800 date a new date for the Robotaxi unveil. 0:08:33.640 --> 0:08:39.240 Well, Robotaxi, it's just the one manifestation of its vision 0:08:39.400 --> 0:08:44.560 only e t e Ontonama's AI. But Robotaxi in fact 0:08:44.720 --> 0:08:48.040 is easier to achieve than a be SE because there's 0:08:48.120 --> 0:08:51.120 no one behind the wheel. So in terms of the 0:08:51.200 --> 0:08:55.400 legal liability, it's much crystal clear. So if Robotaxi gets 0:08:55.400 --> 0:08:59.280 into trouble, it's Tesla that's going to fully compensate and 0:08:59.400 --> 0:09:03.600 financial legally responsible for the accident as opposed to FSD. 0:09:04.480 --> 0:09:07.599 As long as it's not for the autonomous and the 0:09:07.679 --> 0:09:12.000 Tesla doesn't claim one hundred percent legal responsibilities, you know 0:09:12.080 --> 0:09:15.440 it's it's the insurance company needs to underwrite that risk. 0:09:15.679 --> 0:09:18.760 That's why you see lots of waymows on the street 0:09:18.800 --> 0:09:23.920 in selective cities. But there's no Tesla Robotaxi because it 0:09:24.040 --> 0:09:28.840 requires a different sort of like hardware integrate, hardware software 0:09:29.280 --> 0:09:31.079 and AI program integration. 0:09:31.200 --> 0:09:32.280 Tesla doesn't have that. 0:09:34.240 --> 0:09:38.880 We used to perhaps being patient on Elon's promises. 0:09:39.200 --> 0:09:43.240 He's pushed back Robotaxi. He pushed back Optimus just in 0:09:43.280 --> 0:09:44.080 the last day or so. 0:09:44.960 --> 0:09:47.520 Does that matter in the longer term if we are 0:09:47.600 --> 0:09:49.560 seeing a vision of AI. Look, this is also an 0:09:49.640 --> 0:09:51.560 energy company that does relatively well. 0:09:53.600 --> 0:09:56.920 Well. It's sure energy does extremely well, but energy is 0:09:56.960 --> 0:10:00.160 not something you give it one hundred times surprise to 0:10:00.240 --> 0:10:03.400 earning racial right, So I mean the stock is at 0:10:03.440 --> 0:10:05.440 two hundred and fifty. The company is supposed to make 0:10:05.559 --> 0:10:09.000 two dollars and fifty cents this year, so effectively you 0:10:09.040 --> 0:10:12.280 are giving it one hundred and ten price to earning 0:10:12.400 --> 0:10:17.080 racial Okay, so FSD story will get this to you 0:10:17.120 --> 0:10:20.079 know where the company where Elon Musco want the stock 0:10:20.240 --> 0:10:23.640 to go. So the mass is this, So FSD will 0:10:23.679 --> 0:10:26.960 allow the penetration to go up to thirty percent of 0:10:27.000 --> 0:10:30.920 all cars. So in the US, so USL is about 0:10:30.920 --> 0:10:34.760 eighteen million cars, So that gives you six million cars 0:10:34.800 --> 0:10:37.520 for Tesla because it's given you a car, give you 0:10:37.520 --> 0:10:39.720 a driver, so people will buy it for forty five 0:10:39.800 --> 0:10:43.400 thousand dollars. And then the company makes ten percent profit 0:10:43.480 --> 0:10:47.440 margin and you give thirty times a price to earning 0:10:47.559 --> 0:10:50.320 to that kind of a run rate to normalize the earning, 0:10:50.640 --> 0:10:53.160 just like you give to Apple that gives you two 0:10:53.280 --> 0:10:57.440 trillion valuations. That's the story they want to tell to 0:10:57.520 --> 0:10:59.079 the investigation and pacify them. 0:11:00.120 --> 0:11:00.560 Be true. 0:11:00.640 --> 0:11:01.600 It might not be true. 0:11:01.920 --> 0:11:05.280 It might be somewhere else get there first, and Tesla's not. 0:11:05.840 --> 0:11:10.400 But if you give it twenty percent probability, that gives 0:11:10.400 --> 0:11:14.360 you significantly less market evaluation than too Trilia. 0:11:15.800 --> 0:11:19.200 Well said Johan Hanley Warren, Capital CEO and head of Research. 0:11:19.200 --> 0:11:19.760 As we try to. 0:11:19.800 --> 0:11:22.320 Vindicate that ninety three times future earnings. 0:11:22.600 --> 0:11:24.439 That is the valuation of Tesla. 0:11:24.559 --> 0:11:26.920 Look at what's happening with Alphabet, because it's not just 0:11:27.000 --> 0:11:29.839 Tesla out after the bell, Google's parent company is as well. 0:11:29.840 --> 0:11:31.040 We're up five tens percent. 0:11:31.400 --> 0:11:33.480 Not only are you focusing on search, cloud and AI, 0:11:33.800 --> 0:11:37.199 we're also thinking about the wiz rejection of Google's twenty 0:11:37.200 --> 0:11:38.280 three billion dollar offer. 0:11:38.520 --> 0:11:40.199 We we'll be talking about that later in the show 0:11:40.240 --> 0:11:40.480 as well. 0:11:40.679 --> 0:11:40.760 Ed. 0:11:41.600 --> 0:11:44.520 All right, coming up, we bring in Bloomberg's Emily Chang 0:11:44.960 --> 0:11:47.719 for more on that exclusive interview with Meta CEO and 0:11:47.800 --> 0:11:50.120 founder Mark Zuckerberg. 0:11:50.520 --> 0:11:52.640 As next, this is Bloomberg Technology. 0:12:00.080 --> 0:12:11.000 Different Today, Meta unveiled the largest open source AI model ever, 0:12:11.360 --> 0:12:14.160 Lama three point one. The company is also updating is 0:12:14.200 --> 0:12:16.079 Meta AI service because. 0:12:15.800 --> 0:12:18.719 Being built as a rival to chat Gipt. In an 0:12:18.760 --> 0:12:20.280 exclusive interview with Blum. 0:12:20.040 --> 0:12:23.560 Magsemi Chang, Meta CEO and founder Mark Zuckerberg opened up 0:12:23.640 --> 0:12:27.680 about his strategy why believes it's superior to competitors like 0:12:27.720 --> 0:12:28.720 open AI and Google. 0:12:29.000 --> 0:12:29.640 Just take a listen. 0:12:31.400 --> 0:12:33.800 So you're releasing Lama three point one in this family 0:12:33.920 --> 0:12:36.880 of models big and small, including the biggest open source 0:12:36.920 --> 0:12:39.520 model ever four hundred and five billion parier ors. 0:12:39.840 --> 0:12:41.199 What is that jump unlock? 0:12:41.520 --> 0:12:43.200 I actually think the main thing that people are going 0:12:43.280 --> 0:12:45.920 to do, especially because it's open source, is to use 0:12:45.960 --> 0:12:48.840 it as a teacher to train smaller models that they 0:12:48.920 --> 0:12:51.319 use in different applications. If you just think about like 0:12:51.360 --> 0:12:54.599 all the startups out there, or all the enterprises or 0:12:54.640 --> 0:12:57.120 even governments that are trying to do different things, they 0:12:57.160 --> 0:12:59.960 probably all need to at some level build custom model 0:13:00.240 --> 0:13:02.200 for what they're doing. And it's really hard to do 0:13:02.240 --> 0:13:05.040 that with closed systems out there, whether that's open AI 0:13:05.320 --> 0:13:08.800 or Gemini, Google's thing or whatever. And this is like 0:13:09.640 --> 0:13:12.800 gets to a pretty core part of our philosophy is 0:13:12.840 --> 0:13:13.679 we don't believe there's. 0:13:13.520 --> 0:13:15.840 Going to be like one AI to rule them all. 0:13:16.320 --> 0:13:19.360 Our vision is that there's going to be millions or 0:13:19.400 --> 0:13:21.600 just billions of different models out there, So. 0:13:21.640 --> 0:13:23.679 Not one god, but many. Is that the way to 0:13:23.720 --> 0:13:24.240 think about it? 0:13:24.480 --> 0:13:26.760 Well, I don't think they're gonna be gods, but I 0:13:26.800 --> 0:13:29.000 do think that to some degree, if you if you're 0:13:29.040 --> 0:13:30.960 like an organization, you think you're going to create like 0:13:31.000 --> 0:13:33.440 this one super intelligence that does have this feel to 0:13:33.480 --> 0:13:37.079 me of like people trying to create a god. And 0:13:37.520 --> 0:13:41.240 that's just I find that both the wrong way to 0:13:41.240 --> 0:13:43.560 look at it, but just also very unappealing. You know, 0:13:43.559 --> 0:13:47.679 there's almost two hundred million creators on our platforms. They 0:13:47.720 --> 0:13:49.400 all are trying to build their community. People want to 0:13:49.400 --> 0:13:51.520 interact with them. There aren't enough hours in the day. Like, 0:13:51.520 --> 0:13:53.280 I want to make it that every single one of 0:13:53.280 --> 0:13:57.320 them can easily train like an AI version of themselves 0:13:57.800 --> 0:14:00.240 that they can like they can make it what they want. 0:14:00.280 --> 0:14:03.720 So it's almost like a kind of artistic artifact that 0:14:03.760 --> 0:14:06.080 they're putting out there for their community that allows their 0:14:06.120 --> 0:14:08.480 community and interact with them, but also gives them control 0:14:08.520 --> 0:14:10.400 over how that interaction happens. 0:14:10.760 --> 0:14:13.240 Facebook, and you have been blamed for a lot of things. 0:14:13.480 --> 0:14:16.160 Whether you agree or not, why should we trust you 0:14:16.200 --> 0:14:16.680 with AI? 0:14:17.040 --> 0:14:18.960 Well, it's a loaded question. 0:14:20.640 --> 0:14:22.600 We have gotten blamed for a lot of things, and 0:14:22.840 --> 0:14:24.600 I mean, look, I take our role in all this 0:14:24.600 --> 0:14:27.000 stuff seriously, and I think we've tried to handle all 0:14:27.000 --> 0:14:28.080 this as well as possible. 0:14:28.120 --> 0:14:29.160 I'm not sure that it's all. 0:14:29.080 --> 0:14:31.520 Been fair, but like I'd like to think that we're 0:14:31.520 --> 0:14:33.840 an important and relevant company, so I think the scrutiny 0:14:33.880 --> 0:14:36.960 is generally healthy. One of the defining things around open 0:14:37.000 --> 0:14:40.800 source is that anyone can scrutinize the work, and because 0:14:40.840 --> 0:14:42.280 of that, I think it just puts a lot of 0:14:42.320 --> 0:14:44.760 pressure to make sure that the quality of the work 0:14:44.760 --> 0:14:46.440 that you're doing gets better really quickly. 0:14:48.400 --> 0:14:51.520 That was Bluebag's Emily Kang in her exclusive interview with 0:14:51.720 --> 0:14:54.960 metas CEO and founder Mark Zuckerberg, and I'm delighted to 0:14:54.960 --> 0:14:57.040 say that Emily joins me here on set in San Francisco. 0:14:57.560 --> 0:15:01.000 It was so well timed the interview. It's critically important. 0:15:01.080 --> 0:15:03.360 I think back to the last earnings call where zuckerbog 0:15:03.400 --> 0:15:06.480 basically said we think MESI could be the world's leading 0:15:06.480 --> 0:15:10.320 AI company, leading AI company, but he's coming from behind 0:15:10.320 --> 0:15:13.040 a little bit. You did some catching up with him 0:15:13.040 --> 0:15:13.760 in that conversation. 0:15:14.160 --> 0:15:18.080 Absolutely, and you know, you know, the scale of Facebook, Instagram, 0:15:18.200 --> 0:15:21.640 WhatsApp is incredible. So Meta Ai their chatbot is already 0:15:21.640 --> 0:15:23.960 embedded across all of those products and Oculus as well, 0:15:24.000 --> 0:15:24.920 and you can use it as. 0:15:24.760 --> 0:15:25.920 A standalone chatbot. 0:15:26.080 --> 0:15:28.200 But he says hundreds of millions of people are going 0:15:28.240 --> 0:15:29.480 to be using this by the end of the year, 0:15:29.480 --> 0:15:31.800 in fact before the end of the year, which he 0:15:31.920 --> 0:15:35.240 believes what makes it the most used chatbot in the world. 0:15:35.480 --> 0:15:38.200 So in just a few months. It's, you know, potentially 0:15:38.280 --> 0:15:41.880 going to be eclipsing chat Ept. Now we talked a 0:15:41.880 --> 0:15:44.440 little bit about the level of intelligence of these latest models, 0:15:44.440 --> 0:15:47.280 and he admits he still believes there's a gap between 0:15:47.360 --> 0:15:50.160 LAMA three point one and the most advanced models out there, 0:15:50.160 --> 0:15:52.320 but they're already working on LAMA for and he says 0:15:52.320 --> 0:15:55.160 they're closing that gap when that update comes out. 0:15:56.400 --> 0:16:00.400 Emily, as you were mentioning in what he termed eluded question, 0:16:00.520 --> 0:16:03.120 but look, he's used to criticism, but there's been a 0:16:03.120 --> 0:16:05.280 little criticism about the fact that this is open source 0:16:05.320 --> 0:16:07.560 and the quote unquote danger that that brings. How is 0:16:07.600 --> 0:16:09.240 he responding to that element of things? 0:16:10.000 --> 0:16:12.520 Look, I think broadly, and this is what he's been 0:16:12.520 --> 0:16:15.280 saying now for many months. Open source is more safe, 0:16:15.440 --> 0:16:17.720 is more secure. You've got all of these people around 0:16:17.760 --> 0:16:20.320 the world building on it, using it. If they see 0:16:20.360 --> 0:16:22.680 something wrong, Meta is going to get called out on it. 0:16:22.720 --> 0:16:24.880 He said, and we'll fix it. 0:16:25.160 --> 0:16:27.760 And the question is, though, what's in it for Meta? 0:16:27.800 --> 0:16:29.920 It's not that there's nothing in this for them. If 0:16:29.920 --> 0:16:32.840 the industry builds on this and it becomes an industry standard, 0:16:32.840 --> 0:16:36.200 then Meta has more sway in how the industry evolves, 0:16:36.200 --> 0:16:37.480 so he's saying, look, this is. 0:16:37.440 --> 0:16:38.960 More safe, this is more secure. 0:16:38.640 --> 0:16:40.800 But yes, this is also better for us. In fact, 0:16:40.840 --> 0:16:43.560 he believes it's safer than the closed sources approaches of 0:16:43.600 --> 0:16:46.520 open AI or Google because what's happening under the hood 0:16:46.560 --> 0:16:50.680 there you can't necessarily see when something goes wrong. And 0:16:50.960 --> 0:16:53.280 what's really interesting is, you know, without open source, he says, 0:16:53.360 --> 0:16:56.520 I couldn't have built Facebook. This is a deep seated 0:16:56.520 --> 0:16:59.600 part of his philosophy that he's had for twenty years. 0:17:00.120 --> 0:17:03.160 It's definitely interesting. He understands why there's been pushback, why 0:17:03.200 --> 0:17:06.160 some people see him as this sort of unlikely champion 0:17:06.680 --> 0:17:09.800 of open source, given how Meta and Facebook and its 0:17:09.800 --> 0:17:13.439 platforms have evolved. But he really doubled down that this 0:17:13.520 --> 0:17:14.439 is the best way forward. 0:17:14.520 --> 0:17:17.720 There is Mark Zuckerberg, the gold chain wearing new haircut, 0:17:17.880 --> 0:17:21.960 MMA fighting man, and then there is Mark Zuckerberg at 0:17:21.960 --> 0:17:24.920 the helm of a critically important company. You spent time 0:17:24.960 --> 0:17:27.359 with him at his home in Tahoe. I did what 0:17:27.440 --> 0:17:29.360 did you learn about either of those characters? 0:17:30.080 --> 0:17:32.960 I learned how they relate to each other. Okay, and 0:17:33.320 --> 0:17:36.239 you know, he just seems you know, I've met him 0:17:36.280 --> 0:17:38.679 many times of the years I've interviewed him before, he 0:17:38.760 --> 0:17:42.080 just seems more comfortable in his own skin than I've 0:17:42.840 --> 0:17:45.240 than I've ever seen it. He also taught me how 0:17:45.280 --> 0:17:47.600 to wakesurf. You know, Zuck has all these side quests. 0:17:47.640 --> 0:17:50.440 Wakesurfing is one of them, and you know, we talked 0:17:50.440 --> 0:17:53.240 about how he just has so much energy. 0:17:53.359 --> 0:17:54.600 These things keep him focused. 0:17:54.640 --> 0:17:56.560 Priscilla, his wife, was there as well. 0:17:56.600 --> 0:17:58.240 She's like, I prefer when he's doing all these. 0:17:58.160 --> 0:18:01.679 Other things because he just has so much energy to 0:18:01.760 --> 0:18:04.960 burn off. But my main takeaway was that he's not 0:18:05.040 --> 0:18:07.960 going anywhere. If you think about Jeff Bezos, you know 0:18:08.160 --> 0:18:11.199 who left Amazon, Larry and Sergei who left Google. There 0:18:11.200 --> 0:18:13.200 are all these major tech founders who have since stepped 0:18:13.200 --> 0:18:16.960 back from their companies. Mark Zuckerberg isn't going anywhere. He said, Look, 0:18:17.000 --> 0:18:19.320 I want to see this AI wave play out. You know, 0:18:19.480 --> 0:18:22.520 it's ten or fifteen more years before the next platform 0:18:22.560 --> 0:18:24.280 is going to emerge, and I'm going to be around 0:18:24.280 --> 0:18:24.560 for that. 0:18:26.200 --> 0:18:28.960 Emily Chang can't wait to see more of the interview. 0:18:29.000 --> 0:18:30.000 We thank you so much. 0:18:30.200 --> 0:18:34.000 Tune in to this exclusive interview with Mark Zuckerberg online 0:18:34.080 --> 0:18:37.720 or on Bloomberg TV tonight it's six thirty pm Eastern time. 0:18:38.200 --> 0:18:39.800 We've got some breaking news for you. Apple. 0:18:40.240 --> 0:18:43.640 A foldable iPhone may be released in twenty twenty six. 0:18:43.720 --> 0:18:46.480 This is according to the information. We're currently at session 0:18:46.560 --> 0:18:48.800 highs on Apple stock on the back of that. Potentially 0:18:48.880 --> 0:18:51.720 it could fold width wise like a calmshell, according to 0:18:51.760 --> 0:18:54.199 people familiar, and it would make it similar look to 0:18:54.200 --> 0:18:57.560 that Samsung Galaxy X flip z flip in fact, was 0:18:57.600 --> 0:19:01.600 released all the way back in twenty twenty on Apple shares. 0:19:02.320 --> 0:19:19.480 This is blue mere technology. Big news in cybersecurity. The 0:19:19.520 --> 0:19:23.800 startup Whiz has rejected Google. The company has turned down 0:19:23.840 --> 0:19:28.200 that Alphabet twenty three billion dollar takeover offer, sticking instead 0:19:28.280 --> 0:19:30.960 to its plans for an IPO. According to a memo 0:19:31.040 --> 0:19:34.439 that Bloomberg has seen, the move marks a blow for Google, 0:19:34.440 --> 0:19:36.280 of course, which has tried to catch up to Microsoft 0:19:36.320 --> 0:19:39.720 and Amazon on shoring up its security offerings for its 0:19:39.800 --> 0:19:43.000 cloud services. Or please to bring in Dona woman for 0:19:43.119 --> 0:19:46.560 more and Dana talk to us about why this was 0:19:46.600 --> 0:19:49.919 so integral to compete with Microsoft, asure to take on 0:19:50.400 --> 0:19:53.119 the other competitors in aws in the space of cloud. 0:19:55.080 --> 0:20:00.359 So Wiz would have rounded out Alphabet's cybersecurity offerings. Company 0:20:00.359 --> 0:20:02.680 had already acquired Mandy in a couple of years ago 0:20:02.800 --> 0:20:06.959 for a little over five billion, and Wiz would have 0:20:07.200 --> 0:20:09.479 just rounded out the portfolio with a real focus on 0:20:09.600 --> 0:20:14.639 detecting cyber threats in various cloud platforms. It plugs into 0:20:14.760 --> 0:20:18.520 a number of major existing platforms, including Microsoft, Azure, Amazon 0:20:18.560 --> 0:20:24.080 Web Services. And these are Google's alphabets major competitors in 0:20:24.119 --> 0:20:26.159 the cloud space, and it is an area where as 0:20:26.200 --> 0:20:29.320 much as Google is one of the major known names, 0:20:29.400 --> 0:20:32.600 it does still trail Microsoft and Amazon in that major 0:20:33.000 --> 0:20:33.879 critical space. 0:20:34.760 --> 0:20:37.040 You know, part of the even trusting part of our reporting, 0:20:37.080 --> 0:20:40.080 according to sources, is that the leaders at Whiz are 0:20:40.119 --> 0:20:42.920 also conscious about the regulatory environment antitrusts. 0:20:43.119 --> 0:20:44.760 What do we understand there, Donna. 0:20:45.600 --> 0:20:49.320