WEBVTT - Ex-FTX Exec Near Plea Deal, Tesla Mulls Metal Miner Bid 0:00:14.600 --> 0:00:18.360 I'm in San Francisco. This is Bloomberg Technology coming up 0:00:18.400 --> 0:00:20.600 some breaking news. At the top of this our signa 0:00:20.920 --> 0:00:23.520 lithium surges and after ours trading on its U s 0:00:23.560 --> 0:00:25.880 A d r S after Tesla is said to have 0:00:25.880 --> 0:00:28.560 been in talks and weighing a bid for the metals minor. 0:00:28.600 --> 0:00:32.839 Will bring you that exclusive news from Bloomberg. Plus another 0:00:32.880 --> 0:00:36.000 former member of sam bankman Freed's in a circle planning 0:00:36.040 --> 0:00:39.040 to plead guilty to US criminal charges. We bring you 0:00:39.080 --> 0:00:42.519 the latest development of the f t X fallout, and 0:00:42.560 --> 0:00:45.320 we continue our deep dive into the world of artificial 0:00:45.320 --> 0:00:48.879 intelligence and speak with someone investing in the space. Kevin Dunlap, 0:00:49.040 --> 0:00:52.800 Calibrate Ventures co founder and managing partner, joins us later 0:00:52.840 --> 0:00:55.200 this hour. All that and more that stick in the 0:00:55.200 --> 0:00:59.800 world of crypto. Binance, which operates the world's largest crypto exchange, 0:00:59.880 --> 0:01:03.880 is now considering ending relationships with US business partners as 0:01:03.920 --> 0:01:06.000 regulators turn up the heat. I want to bring in 0:01:06.000 --> 0:01:09.280 bloombergs Uchi Yang, who broke this story earlier today, Ugly, 0:01:09.319 --> 0:01:11.280 thank you so much for joining us. What are the 0:01:11.360 --> 0:01:14.479 latest details from your reporting? Thanks for having me so 0:01:14.640 --> 0:01:18.480 we're learning that buiness the global exchange is starting to 0:01:18.640 --> 0:01:22.560 have to think about a plan to retreat from the US, 0:01:22.760 --> 0:01:27.400 especially it's remaining business relationships in the US. We're reporting 0:01:27.480 --> 0:01:31.640 that Biness is considering pulling back its vent investments in 0:01:31.640 --> 0:01:35.200 the country, is looking at potentially cutting ties with some 0:01:35.319 --> 0:01:39.560 of the intermediary firms such as banks and other services firms. 0:01:39.600 --> 0:01:43.760 And it's also in assessment of delisting some of the 0:01:43.880 --> 0:01:48.760 US based tokens, potentially including a major stable one. And 0:01:48.920 --> 0:01:52.280 I have to add that these are preliminary considerations, no 0:01:52.480 --> 0:01:56.400 firm decisions have been made, but that these are assessment 0:01:56.480 --> 0:02:00.560 that the company now has to deliberate given the ongoing 0:02:00.640 --> 0:02:03.920 regulatory crackdown in the US, as we've seen from a 0:02:04.000 --> 0:02:07.840 flurry of reenforcement actions in recent days. You know, our 0:02:07.840 --> 0:02:09.920 sources giving us a pretty good sense of what the 0:02:09.919 --> 0:02:12.720 company is considering and why we should point out that 0:02:13.040 --> 0:02:16.359 Binance did issue a statement or comment in response to 0:02:16.400 --> 0:02:18.040 the story. We'll bring it up on the screen now 0:02:18.440 --> 0:02:21.519 utually just to show our audience. Like every other blockchain company, 0:02:21.600 --> 0:02:25.400 we're conducting a careful cost benefit analysis and will pivot 0:02:25.400 --> 0:02:29.160 our business as necessary to protect our global user base. 0:02:29.240 --> 0:02:32.560 That according to a Binance spokesperson, I guess the easy 0:02:32.639 --> 0:02:35.800 question now utually is what happens next while we're looking 0:02:35.840 --> 0:02:39.600 to see what exacts that finance will be taking where 0:02:39.720 --> 0:02:42.800 we also understand that Biness is in settlement talks with 0:02:43.120 --> 0:02:47.360 US regulators over some of the investigations that have previously 0:02:47.400 --> 0:02:50.520 been reported by US and other press, and there's no 0:02:50.639 --> 0:02:54.240 clear details on either the timeline of the settlement or 0:02:54.280 --> 0:02:57.600 the minetor amount of the settlement. And we also know 0:02:57.760 --> 0:03:01.040 that more Brady other cryptal companies are starting to look 0:03:01.320 --> 0:03:05.120 into plans of potentially moving offshore as well. We know 0:03:05.280 --> 0:03:09.280 that Naxos, for example, a crypto leander, had already made 0:03:09.280 --> 0:03:14.240 announcement too to pull out from the market after receiving 0:03:14.320 --> 0:03:17.720 orders from other states. So Buyinice wouldn't be the first 0:03:17.760 --> 0:03:21.000 one to to start considering how a retreet will look 0:03:21.040 --> 0:03:24.520 like UM and I had to mention that Bynese US, 0:03:24.560 --> 0:03:27.360 which is set up as a separate platform design for 0:03:27.520 --> 0:03:30.880 US UM users, currently said that they have no plan 0:03:31.000 --> 0:03:34.720 to acceed the US. Alright, blood g Yang, thank you. 0:03:43.360 --> 0:03:46.400 In Washington to U S senators are urging a key 0:03:46.480 --> 0:03:51.680 national security panel to quote impose strict structural restrictions between 0:03:51.720 --> 0:03:56.160 TikTok's American operations and its Chinese parent company, bike Dance, 0:03:56.280 --> 0:03:59.880 And in other news, the CEOs of Meta, Amazon, Might 0:04:00.080 --> 0:04:03.160 Soft and others have been subpoenaed by the GOP. For 0:04:03.200 --> 0:04:06.080 a deeper dive on what's happening on tech regulation out 0:04:06.080 --> 0:04:08.720 on the Hill, we're joined by Bloomberg's and editing in 0:04:08.840 --> 0:04:12.200 d C, and of course our big Tech correspondent Alex Brinka, 0:04:12.280 --> 0:04:14.360 who's in Los Angeles. And let's start with you on 0:04:14.400 --> 0:04:18.080 this issue of TikTok. We've covered all week, um the 0:04:18.200 --> 0:04:22.479 strange relations between the US and China, We've covered your 0:04:22.480 --> 0:04:25.040 reporting on TikTok. What is the mood right now in 0:04:25.160 --> 0:04:29.800 d C about how to act with TikTok? Yeah, I'd 0:04:29.800 --> 0:04:31.960 really summarize it as one of distrust. And what was 0:04:32.000 --> 0:04:33.920 just striking about this letter that we saw, I believe 0:04:33.920 --> 0:04:37.039 it was just yesterday, so a letter from Richard Bloomenthal, 0:04:37.080 --> 0:04:41.279 Connecticut Democrat and Jerry Moran, a Republican from Kansas, is 0:04:41.320 --> 0:04:43.560 that they said, we just don't believe what we're hearing 0:04:43.600 --> 0:04:47.360 from TikTok when it comes to assurances that their Chinese 0:04:47.400 --> 0:04:50.880 parent company, by Dance doesn't have access to user data 0:04:51.040 --> 0:04:53.680 and a thumb on the scale of the algorithm. They said, 0:04:53.760 --> 0:04:55.920 you know, we don't trust the security arrangements that we're 0:04:55.920 --> 0:04:59.040 hearing described from the company and even you know, assurances 0:04:59.279 --> 0:05:03.120 from their lead lobbyist here in Washington, even the CEO himself. 0:05:03.160 --> 0:05:05.680 We don't trust that there's going to be enough to 0:05:05.760 --> 0:05:11.320 protect US users from Chinese interference. You know, TikTok CEO 0:05:12.040 --> 0:05:16.000 is due to go to the hill, you know, attend hearings. 0:05:16.040 --> 0:05:18.400 What do we know about that? And I guess in 0:05:18.440 --> 0:05:23.760 the corridors of lawmaking center of our world, what's the 0:05:23.800 --> 0:05:28.160 attitude towards TikTok going into it. Yeah, it's striking how 0:05:28.240 --> 0:05:31.080 bipartisan this is. That there's a lot of mistrust from 0:05:31.160 --> 0:05:35.479 both Democrats and Republicans about really what TikTok's interests is 0:05:35.640 --> 0:05:38.520 in growing the influence here in the US. You know, 0:05:38.560 --> 0:05:40.880 they're saying things like, why would you spend one point 0:05:40.880 --> 0:05:43.279 five billion dollars on lobbying when you can invest that 0:05:43.320 --> 0:05:45.600 in the product, you know, if if you weren't doing 0:05:45.600 --> 0:05:48.800 something nefarious. So, you know, there's a lot of kind 0:05:48.800 --> 0:05:52.719 of disconnect between the popularity of the app among normal 0:05:52.839 --> 0:05:55.279 users and kind of the national security concerns. So we 0:05:55.320 --> 0:05:58.040 hear echo here in Congress, and that's part of kind 0:05:58.080 --> 0:06:02.880 of the broader uh discomfort with Chinese relations right now. 0:06:03.000 --> 0:06:05.680 You know, things like this balloon that was shot down 0:06:06.080 --> 0:06:09.680 allegedly for Chinese surveillance was um something that just kind 0:06:09.720 --> 0:06:12.760 of ramped up tensions even further and made it even 0:06:13.279 --> 0:06:16.599 more likely that that both Republicans and Democrats are going 0:06:16.640 --> 0:06:19.040 to feel pressure to push back on a company, you 0:06:19.120 --> 0:06:22.960 know that's part of a Chinese parent company. I think, Sprinka, 0:06:22.960 --> 0:06:24.920 I'll bring you in from Los Angeles and let's get 0:06:24.960 --> 0:06:28.280 the company side of this story. Because TikTok has a 0:06:28.320 --> 0:06:31.400 massive user footprint in the United States. You and I 0:06:31.400 --> 0:06:33.680 have discussed a number of times that the user base 0:06:33.760 --> 0:06:37.560 doesn't get it. They feel like the risk hasn't been 0:06:37.600 --> 0:06:41.039 communicated to them from lawmakers those that represent them. What 0:06:41.120 --> 0:06:44.560 are the company actually doing to kind of address some 0:06:44.600 --> 0:06:47.960 of those concerns. Well, if you've been following this closely, 0:06:47.960 --> 0:06:50.480 then I'm sure you've heard of something called Project Taxes. 0:06:51.120 --> 0:06:53.120 It's a big effort for the company to bring in 0:06:53.160 --> 0:06:56.479 additional people to help with security, to migrate all the 0:06:56.560 --> 0:07:00.760 data onto Oracle servers, and to basically make sure that 0:07:00.880 --> 0:07:04.279 you know, there is nothing of of user's data or 0:07:04.520 --> 0:07:10.040 influence on the algorithm that will get kind of nefarious. Now, 0:07:10.360 --> 0:07:14.000 that is the exact plan that, as Anna said, lawmakers 0:07:14.160 --> 0:07:17.560 seem to be very skeptical of. But at the same time, 0:07:17.640 --> 0:07:20.840 TikTok is continuing to push forward on its user efforts. 0:07:21.040 --> 0:07:23.000 I was on the app just today and they've launched 0:07:23.000 --> 0:07:25.480 a new trivia tool where you could go in and 0:07:25.480 --> 0:07:28.400 and answer questions. So it seems like they're they're moving 0:07:28.440 --> 0:07:30.840 full steam ahead in terms of making sure that people 0:07:30.880 --> 0:07:33.000 find a lot of delight in the app, and folks 0:07:33.000 --> 0:07:35.800 are I think that the latest numbers, folks are spending 0:07:36.400 --> 0:07:39.160 about a hundred minutes in the US on the app 0:07:39.480 --> 0:07:41.920 every single day. So there is this kind of like 0:07:42.080 --> 0:07:46.440 interesting divide where there is big concern in DC and 0:07:46.760 --> 0:07:50.640 mostly just big concern about being entertained from users here 0:07:50.680 --> 0:07:53.480 in the United States. Right, But also, Alex, you know 0:07:53.680 --> 0:07:55.960 what you notice not just for TikTok. I know this 0:07:56.080 --> 0:07:58.920 to be true of course, of Meta previously of Twitter 0:07:59.000 --> 0:08:01.600 is the huge lobbying effort that's going behind the scenes. 0:08:01.600 --> 0:08:04.080 How much energy is the company putting in, how aggressive 0:08:04.080 --> 0:08:08.680 are they into winning our coolmakers? Yeah, it's interesting. So 0:08:08.800 --> 0:08:11.680 last fall UM. We wrote this kind of big take 0:08:11.720 --> 0:08:15.120 out on their lobbying efforts. They were basically talking to 0:08:15.280 --> 0:08:18.120 friendly parties down in DC. They weren't giving a lot 0:08:18.160 --> 0:08:20.520 of love to the Josh Hollies of the world, the 0:08:20.560 --> 0:08:22.680 mark of Rubio's of the world. The folks were the 0:08:22.680 --> 0:08:25.680 loudest in the room bringing up concerns against them. It 0:08:25.800 --> 0:08:29.600 seems like that strategy has not worked in their favor. 0:08:30.200 --> 0:08:33.080 We have heard and there's been reporting from elsewhere that 0:08:33.120 --> 0:08:35.920 they've changed cats to start the year. They've been a 0:08:35.960 --> 0:08:37.960 lot more aggressive and getting in front of some of 0:08:38.000 --> 0:08:41.520 their detractors. So the company is making moves. Definitely, those 0:08:41.520 --> 0:08:44.640 dollars are going toward UM these kind of behind the 0:08:44.679 --> 0:08:48.959 scenes conversations. But again, skesticism abound from the folks in 0:08:49.040 --> 0:08:52.960 DC and all of those big tech CEOs have been 0:08:53.000 --> 0:08:56.400 subpoena and what are you we hearing from sources about 0:08:56.600 --> 0:08:59.920 what could come out of that. Yeah, so this is 0:09:00.040 --> 0:09:02.560 really what we're expecting from House Republicans this year. You know, 0:09:02.600 --> 0:09:06.439 with Senate Democrats having the majority and House Republicans having 0:09:06.480 --> 0:09:09.080 the majority on the other side of the capital, there's 0:09:09.120 --> 0:09:12.080 not much chance that there's going to be UM tech 0:09:12.080 --> 0:09:14.480 focus legislation that's going to get through the House. Republicans 0:09:14.520 --> 0:09:18.080 are really using their majority for this investigation, and their 0:09:18.120 --> 0:09:20.439 main concern is getting to the bottom of stories like 0:09:20.679 --> 0:09:23.920 the Hunter Biden laptop. Why was that story, um, they 0:09:23.960 --> 0:09:29.239 would say, suppressed before the last presidential election. The cooperation 0:09:29.320 --> 0:09:32.800 between the Biden White House and these big tech platforms 0:09:33.040 --> 0:09:36.800 on addressing misinformation around things like COVID. Now Republicans will 0:09:36.840 --> 0:09:38.800 say that this is a free speech issue that they're 0:09:38.840 --> 0:09:41.600 worried about the government kind of putting its thumb on 0:09:41.600 --> 0:09:44.960 the scale of speech in the United States using these 0:09:45.280 --> 0:09:47.720 very important tech platforms. And this is going to be 0:09:47.800 --> 0:09:51.040 kind of like the opening salvo and demanding documents from 0:09:51.120 --> 0:09:54.199 these CEOs to make sure that they are getting the 0:09:54.280 --> 0:09:58.760 kind of transparency that House Republicans believe they deserve. Bloom 0:09:58.760 --> 0:10:03.439 Bugs and Edgison and Alex Brinka, thank you. Now coming up, 0:10:03.440 --> 0:10:07.199 Saudi Arabia's public Investment Fund just became the largest outside 0:10:07.200 --> 0:10:12.120 shareholder of Nintendo. Will explain why. In talking tech. That's next, 0:10:12.320 --> 0:10:24.480 This is Bloomberg. Nintendo has taken the scalp of its 0:10:24.480 --> 0:10:28.679 great Japanese rival Sony. Sales of Nintendo Switch, its flagship 0:10:28.720 --> 0:10:32.320 console have overtaken those of the PlayStation four. You can 0:10:32.320 --> 0:10:36.040 see in this chart it's gradually hauled in the mighty 0:10:36.360 --> 0:10:40.200 PS four. Interestingly, though, look at this a slight slackening 0:10:40.280 --> 0:10:43.160 of growth in the most recent months, of which a 0:10:43.160 --> 0:10:46.199 bit more later you say that's not a fair comparison. 0:10:46.240 --> 0:10:49.880 Sony has since released the PlayStation five. Even taking that 0:10:49.960 --> 0:10:53.959 into account, you can see Nintendo is out selling the 0:10:54.000 --> 0:10:58.480 total unit sales of PlayStations from across the board. The 0:10:58.520 --> 0:11:00.800 wrinkle when it comes to nintend though, it is not 0:11:00.920 --> 0:11:05.439 expecting to sell as much this year as people had expected, 0:11:05.880 --> 0:11:10.080 and see these pace of sales for Nintennis, which is 0:11:10.160 --> 0:11:13.400 not as bullish. As a consequence, the share price is 0:11:13.400 --> 0:11:18.520 being punished. Hm. Hm, Time now for talking tech, and 0:11:18.600 --> 0:11:22.000 let's stick with Nintendo for a second, because Saudi Arabia's 0:11:22.040 --> 0:11:25.960 public investment fund just became the largest outside shareholder of 0:11:26.000 --> 0:11:28.760 the video game company. This the latest move by the 0:11:28.800 --> 0:11:32.440 Gulf state to lower its reliance on oil. The sovereign 0:11:32.480 --> 0:11:34.560 web fund now owns eight point three percent of the 0:11:34.600 --> 0:11:37.559 Kyoto based games company, according to a filing, up from 0:11:37.600 --> 0:11:39.760 about six percent at the start of the year. That 0:11:39.800 --> 0:11:43.480 puts it ahead of Japan's government pension investment fund and 0:11:43.559 --> 0:11:47.600 behind only Nintendo Zone holdings, according to data compiled by Bloomberg. 0:11:47.760 --> 0:11:50.720 Now moving onto the world of PC makers, Lenovo's profit 0:11:50.840 --> 0:11:53.160 fell for the first time in almost three years on 0:11:53.240 --> 0:11:57.120 waning demand for personal computers, forcing the company to warn 0:11:57.120 --> 0:11:59.520 of job cuts. The company has been struggling with a 0:11:59.600 --> 0:12:03.160 tumble in global demand following that pandemic error work from 0:12:03.160 --> 0:12:05.880 home boom, but the company also saying the PC market 0:12:05.920 --> 0:12:10.240 may stabilize quote sooner than expected. And back to Krypto, 0:12:10.360 --> 0:12:13.880 with the SEC saying crypto fugitive Do Quan and the 0:12:13.920 --> 0:12:18.960 firm he founded, Terraform Labs, transferring ten thousand bitcoin out 0:12:19.200 --> 0:12:21.520 of their doomed projects and turned some of that token 0:12:21.800 --> 0:12:25.520 into cash virus. Swiss Bank j one has previously denied 0:12:25.559 --> 0:12:28.640 wrong doing in South Korean authorities are still seeking help 0:12:29.000 --> 0:12:32.480 in the hunt to find him alright. Turning to Tesla 0:12:32.520 --> 0:12:35.680 and reaction to that news Thursday that Tesla is recalling 0:12:36.000 --> 0:12:38.760 three hundred and sixty three thousand vehicles over an issue 0:12:39.000 --> 0:12:42.400 with its self driving technology, Wells Fargo analyst Colin Langard 0:12:42.440 --> 0:12:45.720 says the recall has little financial impacts, but the risk 0:12:46.000 --> 0:12:49.480 clearly remains as other investigations are ongoing at the National 0:12:49.559 --> 0:12:52.920 Highway Traffic Safety Administration and delighted to say Colin joins 0:12:52.960 --> 0:12:55.559 US now you have an equal weight recommendation, a hundred 0:12:55.559 --> 0:12:58.520 and fifty dollar price target on Tesla, and Collin, you're 0:12:58.520 --> 0:13:02.600 basically pointing out that the recall happening and over the 0:13:02.679 --> 0:13:06.480 air update fix doesn't kind of do away with longer 0:13:06.600 --> 0:13:11.160 term concerns. In other words, is still looking and asking 0:13:11.240 --> 0:13:15.800 questions of Tesla. Yeah. Absolutely, I mean, financially it's an 0:13:15.800 --> 0:13:17.760 over the air update. It's going to be you know, 0:13:18.080 --> 0:13:20.880 really at no cost to Tesla. Um, but I think 0:13:20.880 --> 0:13:23.480 it does show that the ns is willing to take action. 0:13:23.880 --> 0:13:26.840 There are I think reportedly you know, over three dozen 0:13:26.880 --> 0:13:30.880 investigations that's been ongoing. And it's really not just NITZA. 0:13:31.000 --> 0:13:35.120 There's a reportedly a Department of Justice investigation. There is 0:13:35.160 --> 0:13:37.480 an indication that ten K that they're asking for information, 0:13:37.520 --> 0:13:40.640 so it seems like that's very likely. Uh, and there's 0:13:40.679 --> 0:13:44.600 the SEC reportedly might be investigating again. So UM, there's 0:13:44.600 --> 0:13:46.240 just a lot of those risks out there, and I 0:13:46.240 --> 0:13:48.439 think Tesla investors need to keep that in mind. I mean, 0:13:48.480 --> 0:13:53.000 autopilot is extremely important feature that's a competitive advantage for Tesla, 0:13:53.120 --> 0:13:56.959 and if there's regulations that limit its use or or 0:13:57.480 --> 0:13:59.960 pullback functionality, that's clearly going to be a concern for 0:14:00.040 --> 0:14:05.480 the stock. Elon must get this interview in June where 0:14:05.520 --> 0:14:09.559 he basically described the overwhelming focus for Tesla being to 0:14:09.760 --> 0:14:14.079 crack full self driving, and he said it's essential because 0:14:14.080 --> 0:14:16.800 really the difference between Tesla being worth a lot of 0:14:16.840 --> 0:14:21.440 money and being worth zero is their success on FSD Beta. 0:14:21.800 --> 0:14:24.200 Do you model that into your price targets? Do you 0:14:24.280 --> 0:14:27.320 agree with kind of that thesis on how Tesla should 0:14:27.320 --> 0:14:31.520 be valued? Uh? Not really. I mean I think he's 0:14:31.720 --> 0:14:34.200 kind of already walked back some of those targets. Right. 0:14:34.320 --> 0:14:36.640 It's it's become very clear across the board, I mean 0:14:36.760 --> 0:14:40.960 across all the different autonomous startups that to get to 0:14:41.000 --> 0:14:44.720 full autonomy is very challenging. UM and you know, full 0:14:44.760 --> 0:14:47.760 self driving is you know, as now indicated is not 0:14:47.840 --> 0:14:50.080 full self driving level four, level five. It's going to 0:14:50.160 --> 0:14:52.960 be an advanced level to eight as type system at 0:14:53.040 --> 0:14:55.800 least at this point. So I don't see, you know, 0:14:55.960 --> 0:14:57.560 from most of the experts that I talked to an 0:14:57.560 --> 0:15:00.720 autonomy you know, the strategies like it's going to take 0:15:00.720 --> 0:15:03.120 a very long time if it's ever all possible, particularly 0:15:03.160 --> 0:15:05.880 without lighter. So I actually don't put a high probability 0:15:05.960 --> 0:15:08.720 of anything near term on on true full self driving 0:15:08.760 --> 0:15:11.280 the way people are thinking about, you know, could that 0:15:11.480 --> 0:15:14.560 you know, massively change the valuation, absolutely if they could 0:15:14.560 --> 0:15:16.680 deliver it. I just don't think the technology is there young. 0:15:17.680 --> 0:15:19.800 As you heard at the top of the show, Tesla 0:15:19.920 --> 0:15:23.960 is considering a bid for battery metals minus signor lithium. 0:15:24.040 --> 0:15:26.040 You know, a source told me earlier it's just one 0:15:26.120 --> 0:15:29.040 name that Tessa is looking at. So clearly test is 0:15:29.040 --> 0:15:32.760 looking at supply chain right on the battery side. On March, 0:15:32.880 --> 0:15:36.200 the first we will get master Plan Part three, which 0:15:36.280 --> 0:15:39.000 you know, a part of we understand will be how 0:15:39.040 --> 0:15:44.040 to scale beyond Tesla's current level. What are your expectations 0:15:44.080 --> 0:15:48.480 for what we'll learn from Elon Musk and co. Yeah, 0:15:48.480 --> 0:15:50.520 I mean, I think if you look at what's happening 0:15:50.520 --> 0:15:53.360 with Tesla, right, I mean, we've had it seems like 0:15:53.400 --> 0:15:55.920 there were clear signs that demand was softening. We've had 0:15:55.960 --> 0:15:59.360 this massive price cut that spurred the demand. The question 0:15:59.400 --> 0:16:02.160 comes as how long does that price cut keep demand going? 0:16:02.520 --> 0:16:04.720 And so you actually need to kind of start to 0:16:04.720 --> 0:16:07.160 get line of sight to what's the next driver. And 0:16:07.200 --> 0:16:08.640 so I think at the investor day of the key 0:16:08.680 --> 0:16:11.240 event is going to be focused around, you know, understanding. 0:16:11.320 --> 0:16:13.080 You know, what I think they've talked about is the 0:16:13.280 --> 0:16:15.720 sort of Gen three model. I'm guessing and I think 0:16:15.720 --> 0:16:17.520 most people are guessing that's going to be a lower 0:16:17.560 --> 0:16:20.480 price model that will actually give them coverage for the 0:16:20.560 --> 0:16:23.520 vast majority of the price points in the auto segment 0:16:23.560 --> 0:16:26.520 if you get it to thirty thousand or below UM 0:16:26.640 --> 0:16:29.680 and that obviously widens the TAM and the addressable market 0:16:29.720 --> 0:16:32.400 and could get people excited if you could do that economically. 0:16:32.680 --> 0:16:34.840 And I think that's what people are expecting, is, you know, 0:16:34.880 --> 0:16:39.720 a discussion of cheaper price model with strong economics behind it. Colin, 0:16:39.760 --> 0:16:42.200 I noticed a Friday night. I know that maybe Elon 0:16:42.280 --> 0:16:44.360 musk Tesla, it's not how you want to end your day, 0:16:44.400 --> 0:16:48.560 But you tolds about regulatory risk being a damage to credibility. 0:16:48.680 --> 0:16:51.240 What are the other risk tests facing right now? Real quick? 0:16:52.800 --> 0:16:55.440 I mean, uh, you know, expectations are high after the 0:16:55.440 --> 0:16:58.000 recent run. I think we have to see what happens 0:16:58.320 --> 0:17:01.280 April one, when you know the you know, the full 0:17:01.360 --> 0:17:04.359 iary credits come in the seven thousand, five hundred may 0:17:04.400 --> 0:17:06.879 go down. We'll see if demand is impacted there. I 0:17:06.880 --> 0:17:09.920 think there's high expectations into the investor day and yeah, 0:17:09.920 --> 0:17:12.400 I mean I think it's probably gonna be longer term 0:17:12.480 --> 0:17:15.280 for your seeing some sort of regulatory action that might 0:17:15.320 --> 0:17:18.200 be more aggressive than what we saw yesterday, but still 0:17:18.200 --> 0:17:20.960 remains a long term risk that investors shouldn't forget about. 0:17:20.960 --> 0:17:23.000 I mean, maybe it'll all blow over, but it's still 0:17:23.000 --> 0:17:25.720 something to consider. All right. Well, as fagoys called it, Langon, 0:17:25.800 --> 0:17:36.680 thank you, Happy Friday, have a great long weekend opening. 0:17:36.680 --> 0:17:39.119 I deserves a ton of credit for taking what happened 0:17:39.119 --> 0:17:42.120 with transformers and large language models and taking it out 0:17:42.119 --> 0:17:44.640 of the research labs of these big tech companies. They're 0:17:44.640 --> 0:17:47.520 really at the front lines of bringing these technology to 0:17:47.600 --> 0:17:49.960 lots of application developers and users. So to give up 0:17:50.000 --> 0:17:52.640 any credit they when they released chat GPT, they were 0:17:52.760 --> 0:17:55.520 very careful to put in place safeguards to prevent certain 0:17:55.600 --> 0:17:59.160 types of toxic or harmful content or dangerous content from 0:17:59.200 --> 0:18:02.359 being I wouldn't be surprised if in the next six 0:18:02.440 --> 0:18:04.840 to twelve months we have models that are actually capable 0:18:04.880 --> 0:18:07.600 of truthfulness. I think every company is going to be 0:18:07.640 --> 0:18:10.240 an AI company, and everything we do at work and 0:18:10.280 --> 0:18:12.320 how we live is going to be transformed by AI. 0:18:15.200 --> 0:18:18.280 Those were just some of Bloomberg Technologies guests sharing their 0:18:18.600 --> 0:18:22.200 recent thoughts on the booming generative AI sector and open 0:18:22.240 --> 0:18:25.440 Aies contribution in particular. So for more on what's going 0:18:25.480 --> 0:18:27.800 on and the impact to tech moving forward, I want 0:18:27.800 --> 0:18:30.720 to bring in Bloomberg Intelligence is Man Deep Seeing and Mandy, 0:18:30.800 --> 0:18:34.240 you have this note out this Friday about actually where 0:18:34.280 --> 0:18:37.879 the real impact you think chat g people t will come. 0:18:37.960 --> 0:18:40.719 So much focus on what it will do in the 0:18:40.760 --> 0:18:45.240 search wars right being revival versus Google. But for you, 0:18:45.560 --> 0:18:49.960 this is a story about cloud. Explain your thesis. Sure, 0:18:50.080 --> 0:18:53.600 So look, I think what you're gonna see is everything 0:18:53.640 --> 0:18:57.880 around us when it comes to apps, website, software will 0:18:57.960 --> 0:19:01.440 become more intelligent. And what you need to drive that 0:19:01.760 --> 0:19:04.399 is cloud infrastructure. So think of you know how our 0:19:04.480 --> 0:19:08.399 data centers are set up right now, it's essentially you know, 0:19:08.640 --> 0:19:12.320 work certain kind of workloads which are mostly CPU driven. 0:19:12.800 --> 0:19:15.480 Now that we have power of these you know, custom 0:19:15.600 --> 0:19:19.200 chips that can run AI workloads, that can run these 0:19:19.320 --> 0:19:23.480 large language models, it allows us to leverage all of 0:19:23.520 --> 0:19:26.360 that in our day to day experience of accessing the Internet, 0:19:26.359 --> 0:19:29.560 and which is why I think cloud growth was extremely 0:19:29.680 --> 0:19:32.960 strong even before they slowdown. And I think this even 0:19:33.000 --> 0:19:36.439 accelerates that on the server side, and I wouldn't be 0:19:36.480 --> 0:19:39.800 surprised if it drives up the refresh cycle on the 0:19:39.960 --> 0:19:43.880 edge or the you know, the consumer devices as well. Yeah, 0:19:43.920 --> 0:19:46.920 in the conversation we've had certainly in Cilicon Valley, right, 0:19:46.960 --> 0:19:51.200 of course, AWS dominates this market. The AWS hasn't even 0:19:51.200 --> 0:19:53.920 shown his hand yet really when it comes to their 0:19:54.320 --> 0:19:56.520 their AI or at least sort of there out there 0:19:56.560 --> 0:20:01.399 consumer facing AI competence. There's a piece of data analysis 0:20:01.440 --> 0:20:04.680 that you do in your debt that you've published about 0:20:04.720 --> 0:20:08.320 how much search is actually going to be connected to 0:20:08.440 --> 0:20:10.720 large language models. I think you say that somewhere between 0:20:10.720 --> 0:20:14.840 fifteen and search queries or images will be linked to 0:20:15.000 --> 0:20:18.520 l l ns. Why did you point that out? Yeah, 0:20:18.560 --> 0:20:21.440 so think of you know, how many types of searches 0:20:21.600 --> 0:20:25.840 actually require that large language context. I mean some of 0:20:25.880 --> 0:20:28.959 these searches are essentially looking for a website you are 0:20:29.119 --> 0:20:32.920 l or just some basic information we're a large language 0:20:32.960 --> 0:20:35.840 model can add value is if you want to summarize 0:20:35.880 --> 0:20:39.239 a large corpus of text or you know, drive some 0:20:39.359 --> 0:20:42.920 intelligence around the type of query where you just don't 0:20:42.960 --> 0:20:45.320 want to access the u r L but actually make 0:20:45.359 --> 0:20:49.800 it intelligent in terms of saving the time and driving productivity. 0:20:49.880 --> 0:20:52.359 And when you look at all the queries, the type 0:20:52.359 --> 0:20:55.800 of queries people do on Google, we kind of narrowed 0:20:55.840 --> 0:20:59.600 it down to fifteen over the next two to three years. 0:20:59.680 --> 0:21:02.400 Obvious see this sort of big gradual, but you can 0:21:02.400 --> 0:21:04.840 see you know, education and a lot of that A 0:21:05.000 --> 0:21:08.159 use case right now is using a negative context around 0:21:08.800 --> 0:21:11.360 you know, copying essays or that kind of stuff. But 0:21:11.800 --> 0:21:14.840 there is a real use case around education as well 0:21:14.880 --> 0:21:17.840 as you know, queries where you can do a lot 0:21:17.920 --> 0:21:21.520 of things in terms of summarizing things quickly. And I 0:21:21.560 --> 0:21:26.080 think that's where we get through that number, all right, 0:21:26.119 --> 0:21:31.640 Bloomberg Intelligent Senior Technology analyst, mandyat Singh thank you. Kevin Dunlap, 0:21:31.720 --> 0:21:35.199 Calibrate Ventures co founder and managing partner, is with me 0:21:35.240 --> 0:21:38.520 now this Friday. Calibrate which announced their second fund of 0:21:38.600 --> 0:21:42.639 ninety seven million dollars back in December one, specifically to 0:21:42.760 --> 0:21:48.800 invest in early stage AI and automation startups across healthcare, logistics, education, 0:21:49.240 --> 0:21:52.679 financial services. Kevin, let's get the big picture from you. First, 0:21:52.720 --> 0:21:55.960 you heard Mandy eat there, you've heard all the data points, 0:21:56.000 --> 0:21:58.520 just some up what you're seeing right now as the 0:21:58.600 --> 0:22:00.879 moment in AI, what is it that is before us? 0:22:02.600 --> 0:22:05.760 When we started calibrate first and two thousand seventeen, we 0:22:05.800 --> 0:22:09.159 believe that there was a large economic unlock that was 0:22:09.200 --> 0:22:11.800 going to occur, similar to what happened in sas in 0:22:11.840 --> 0:22:15.080 the early two thousand's. And now we're seeing that the 0:22:15.119 --> 0:22:17.880 ability for companies to build quickly on top of these 0:22:17.920 --> 0:22:20.760 large language models, as well as thinking about the middle 0:22:20.800 --> 0:22:24.160 where middle layer to actually take and implement these actions 0:22:24.320 --> 0:22:27.600 into realities in the real world is what's exciting to 0:22:27.680 --> 0:22:31.480 us to calibrate. The chronology or the timeline here for 0:22:31.520 --> 0:22:34.760 me is so interesting. You started or launch your fund 0:22:34.760 --> 0:22:36.800 in December one. I don't know how much of the 0:22:36.840 --> 0:22:40.040 capitol you've you've committed yet, but really this took off 0:22:40.080 --> 0:22:44.119 in November, right And I just wonder how you feel 0:22:44.600 --> 0:22:48.960 about how much open ai has dominated the headlines, because 0:22:49.040 --> 0:22:51.280 you know the names you're looking at have nothing to 0:22:51.280 --> 0:22:55.000 do with open AI. At this moment in time, everyone's 0:22:55.080 --> 0:22:56.840 all of our companies are looking at how to use 0:22:56.880 --> 0:23:00.720