WEBVTT - Donald Trump, Elon Musk Fallout Deepens 0:00:04.080 --> 0:00:08.440 Bloomberg Tech is alive from coast to coast, with Caroline 0:00:08.520 --> 0:00:12.879 Hyde in New York and Edva Lowe in San Francisco. 0:00:14.760 --> 0:00:17.759 This is Bloomberg Tech coming up. The battle between Elon 0:00:17.880 --> 0:00:21.680 Musk and President Trump is refueled, clashing over the tax 0:00:21.720 --> 0:00:23.680 bill and the EV subsidy question. 0:00:24.880 --> 0:00:27.600 Plus Musk is taking oversight of sales in Europe and 0:00:27.680 --> 0:00:31.200 the US as investors brace for another ugly delivery number 0:00:31.200 --> 0:00:32.880 for Q two, and. 0:00:32.840 --> 0:00:37.040 Apple is considering using AI technology from Manthropic or open Ai, 0:00:37.159 --> 0:00:41.440 potentially sidelining its own in house models. All right, let's 0:00:41.479 --> 0:00:44.240 get straight to our top story. Tesla is down six percent. 0:00:44.320 --> 0:00:47.159 It is off session lows. But the President in the 0:00:47.240 --> 0:00:50.840 last few minutes reiterating something that he said earlier this morning, 0:00:50.960 --> 0:00:53.680 basically that doades should look at Elon Musk. There was 0:00:53.720 --> 0:00:57.080 a question to him about whether must should be deported. 0:00:57.120 --> 0:00:59.360 There is a clash over a bill. Let's get to 0:00:59.360 --> 0:01:02.440 those comments from earlier today, Rob, thank your luck. 0:01:03.040 --> 0:01:06.039 We might have to put doge on Elon. You know, 0:01:06.200 --> 0:01:10.040 you know, doj Doji is the monster that has that 0:01:10.200 --> 0:01:11.759 might have to go back and eat Elon. 0:01:11.840 --> 0:01:12.600 Will that be there? 0:01:12.640 --> 0:01:17.760 Of He gets a lot of subsidies, Peter, But Elon's 0:01:17.840 --> 0:01:21.679 very upset that the easy mandate you're gonna be terminated. 0:01:21.760 --> 0:01:23.760 And you know what, when you look at it, who 0:01:23.840 --> 0:01:26.399 wants not everybody wants to electric car. 0:01:28.200 --> 0:01:30.920 Let's get more on the feud Elon Musk versus the 0:01:30.959 --> 0:01:34.160 White House remokes Kaylee lines joins us for more and 0:01:34.319 --> 0:01:37.520 yet further comments coming from the President that he's going 0:01:37.560 --> 0:01:39.920 to be looking more deeply into Elon's businesses. 0:01:41.440 --> 0:01:44.319 Yeah, and Caroline, this was really reignited after Elon Musk 0:01:44.360 --> 0:01:47.240 has refired up his criticism of this one big, beautiful bill, 0:01:47.480 --> 0:01:49.600 whether or not you assign the blame for that because 0:01:49.640 --> 0:01:52.760 of fiscal responsibility concerns, Musks has, in his view that 0:01:52.800 --> 0:01:55.080 this adds too much to the deficit and undermines the 0:01:55.080 --> 0:01:57.600 work of Doge or what President Trump and other Republicans 0:01:57.600 --> 0:02:00.000 have suggested, which is just that Musk is upset about 0:02:00.160 --> 0:02:03.120 ev subsidies. Either way, Elon Musk has gone as far 0:02:03.160 --> 0:02:05.920 as to say that any Republican who campaigned on lessening 0:02:06.040 --> 0:02:08.000 the debt burden of the United States and then voted 0:02:08.040 --> 0:02:10.440 for a big addition to the debt would face a 0:02:10.520 --> 0:02:13.560 primary funded potentially by Elon Musk. He said they will 0:02:13.560 --> 0:02:15.440 lose their primary next year if it is the last 0:02:15.440 --> 0:02:17.560 thing I do on this earth keeping in mind, of course, 0:02:17.600 --> 0:02:20.440 he deployed almost two hundred and eighty million dollars in 0:02:20.480 --> 0:02:21.480 the twenty twenty. 0:02:21.200 --> 0:02:22.280 Four election cycle. 0:02:22.360 --> 0:02:24.919 So that is what President Trump and part has responded 0:02:24.960 --> 0:02:27.040 to here. He just reiterated down in Florida that he 0:02:27.080 --> 0:02:29.880 wants the Department of Government Efficiency, which Elon Musk was running, 0:02:30.040 --> 0:02:32.960 to look into Musk's businesses, calling him the most subsidized 0:02:33.200 --> 0:02:35.760 person on Earth, suggesting if those government subsidies were to 0:02:35.760 --> 0:02:38.320 go away, Elon Musk might have to go back to 0:02:38.440 --> 0:02:41.160 South Africa, though it's unclear how exactly that would work. 0:02:41.240 --> 0:02:43.920 Is Yes, there is a rollback of EV subsidies, for example, 0:02:43.960 --> 0:02:46.760 in this legislation that could hit Tesla, But for another 0:02:46.880 --> 0:02:50.040 Musk company like SpaceX, which basically is the only reliable 0:02:50.080 --> 0:02:52.359 way to get US astronauts too and from the International 0:02:52.440 --> 0:02:54.520 Space Station, that may be a lot harder of a 0:02:54.560 --> 0:02:57.840 relationship to disrupt. Then there's the other threat, of course, 0:02:58.360 --> 0:03:00.840 that President Trump has suggested he may act on today. 0:03:00.840 --> 0:03:02.520 When he was asked directly if you would look at 0:03:02.520 --> 0:03:05.519 deporting Elon Musk, he said he'll have to look into 0:03:05.560 --> 0:03:08.000 that knowing that, yes, Elon Musk was born in South Africa, 0:03:08.240 --> 0:03:10.280 but he is a US citizen, so it's not clear 0:03:10.320 --> 0:03:12.520 either how that would work. And it's also not clear 0:03:12.520 --> 0:03:14.639 whether we could see an escalation in this tension as 0:03:14.680 --> 0:03:17.200 we saw last month. Elon Musk for now was saying 0:03:17.240 --> 0:03:19.600 that while he is tempted to escalate, he'll refrain from 0:03:19.639 --> 0:03:20.680 doing so. 0:03:20.720 --> 0:03:23.600 Bloomberg's Katie Lines in Washington, d C. Thank you very much. 0:03:23.680 --> 0:03:26.400 Let's stick with Tesca Tesla. Bloomberg broke the story this 0:03:26.480 --> 0:03:28.880 morning that Elon Musk is set to take over the 0:03:28.880 --> 0:03:32.400 reins of the company's European and US sales following the 0:03:32.440 --> 0:03:35.560 departure of long time lieutenant Ohmead Afshaft. For more, I 0:03:35.600 --> 0:03:38.800 want to get out to Bloomberg's Craig Trudell. This comes 0:03:38.880 --> 0:03:42.800 in advance of likely global sales data tomorrow, right. But 0:03:42.920 --> 0:03:45.680 what we're learning from sources we broke this colleage story 0:03:45.680 --> 0:03:49.800 of our colleagues in Asia is the kind of sense 0:03:49.800 --> 0:03:51.920 of who's steering the ship right now at Tesla. 0:03:53.480 --> 0:03:55.840 Yeah, I think this is interesting in light of the 0:03:56.440 --> 0:03:59.720 last few months. Right when April rolled around, we saw 0:03:59.720 --> 0:04:03.680 that I had really disappointing first quarter deliveries. In May, 0:04:03.800 --> 0:04:07.880 Bloomberg spoke with Elon Musk at an economic forum, where 0:04:07.920 --> 0:04:10.760 he said, you know what, sales have turned around. We 0:04:10.800 --> 0:04:13.160 don't expect to see any shortfall in sales. 0:04:14.080 --> 0:04:14.320 You know. 0:04:14.760 --> 0:04:18.159 I think as the quarter progressed, it became clear that 0:04:17.880 --> 0:04:21.600 that was premature, you know, at least to put it charitably, 0:04:22.480 --> 0:04:26.640 that Tesla sales had in fact continued to decline. The 0:04:26.760 --> 0:04:30.760 expectation among analysts is again for another, you know, call 0:04:30.800 --> 0:04:33.200 it in the ballpark of twelve to thirteen percent drop 0:04:33.320 --> 0:04:37.160 similar to the first quarter. And you know, Tesla, it 0:04:37.200 --> 0:04:40.240 does seem now is looking to sort of shake things 0:04:40.320 --> 0:04:47.240 up with Musk, you know, it certainly seems dismissing Afshar 0:04:47.400 --> 0:04:51.960 and also taking over those reporting lines from him Craig. 0:04:52.040 --> 0:04:55.760 The irony here, though, is that many would say Elon 0:04:55.920 --> 0:04:59.440 is the problem and why sales fell in Europe at least, 0:04:59.480 --> 0:05:01.719 maybe not so much in Asia where it's a competition 0:05:01.800 --> 0:05:06.000 issue in particular. But meanwhile, the issue, the focus he 0:05:06.080 --> 0:05:08.880 had in politics that has so hurt his sales is 0:05:08.920 --> 0:05:09.960 now biting him back. 0:05:10.000 --> 0:05:12.120 From a White House perspective. 0:05:11.680 --> 0:05:12.360 It feels like. 0:05:13.960 --> 0:05:17.240 I think that's a perfect, perfectly good sort of counter 0:05:17.400 --> 0:05:20.039 argument to make here right in that in Asia we 0:05:20.080 --> 0:05:23.120 have not necessarily seen the blowback that we've seen in 0:05:23.160 --> 0:05:27.640 the US or Europe, where it doesn't necessarily matter all 0:05:27.640 --> 0:05:30.880 that much to a consumer in China how close Elon 0:05:31.000 --> 0:05:34.880 Musk is to Donald Trump necessarily, but it does matter 0:05:34.960 --> 0:05:39.240 when Musk is exerting himself over the US government to 0:05:39.600 --> 0:05:43.200 American car buyers, and over here in Europe Trump is 0:05:43.640 --> 0:05:49.120 not particularly popular. He's also inserted himself into European politics, 0:05:49.480 --> 0:05:52.640 most notably, I would say, in Germany getting behind the AfD, 0:05:52.800 --> 0:05:56.720 which of course is a very polarizing party to say 0:05:56.760 --> 0:05:58.920 the least, not only in that country, but in Europe 0:05:58.960 --> 0:06:02.919 more broadly. And you know, those sort of combination of factors. 0:06:02.920 --> 0:06:05.359 I think, you know, there was a real sort of 0:06:05.400 --> 0:06:07.800 question earlier this year how much of this is a 0:06:07.880 --> 0:06:10.599 backlash against Musk and how much is it you know, 0:06:10.720 --> 0:06:13.360 things going on within the business, the changeover to. 0:06:13.480 --> 0:06:14.920 Right, a refresh model why. 0:06:15.040 --> 0:06:17.839 I think we're seeing more indications that it's not just 0:06:17.920 --> 0:06:20.760 the model why, and that the Musk factor is looming 0:06:20.880 --> 0:06:21.640 large here as well. 0:06:22.720 --> 0:06:25.640 Shares have paired some of their decline, now down five percent, 0:06:25.720 --> 0:06:28.000 the session low was seven point seven percent decline. Where 0:06:28.040 --> 0:06:30.839 you're showing this chart, Craig, that amidst all of the headlines, 0:06:30.920 --> 0:06:34.120 Tesla's market values fall and below one trillion dollars. Let's 0:06:34.160 --> 0:06:37.600 go back to the political Kaylee was explaining the tension 0:06:37.640 --> 0:06:41.520 between Musk and President Trump around the Big Beautiful Bill 0:06:42.480 --> 0:06:44.720 and the issue of EV subsidy. 0:06:44.839 --> 0:06:45.119 Elon. 0:06:45.200 --> 0:06:49.200 Musk has been very consistent to his credit that actually 0:06:49.240 --> 0:06:52.480 he'd be fine if America did away with subsidies, because 0:06:52.760 --> 0:06:54.719 I think my understanding of it is that he feels 0:06:54.760 --> 0:06:57.960 Tesla has a lower cost base and more pricing power, 0:06:58.160 --> 0:07:01.560 and if subsidies were to go away, which President statements contradict, 0:07:01.920 --> 0:07:04.039 it would be more beneficial to Tesla than it would 0:07:04.080 --> 0:07:05.479 be other American automakers. 0:07:07.120 --> 0:07:07.360 Yeah. 0:07:07.360 --> 0:07:10.160 And I think our colleague in Bloomberg opinion, Liam Denning, 0:07:10.240 --> 0:07:14.400 has has probably made the most you know, convincing counter 0:07:14.520 --> 0:07:17.840 argument to that, right, that this is not a matter 0:07:17.880 --> 0:07:21.040 of people deciding, you know, whether to buy a Tesla 0:07:21.120 --> 0:07:25.880 or another another electric vehicle, that there's also the potential 0:07:25.960 --> 0:07:29.280 for consumers to you know, decide, you know what, Rather 0:07:29.320 --> 0:07:31.840 than buy a Tesla, I made buy a combustion car 0:07:31.960 --> 0:07:35.840 from uh, you know from say a General Motors or 0:07:36.240 --> 0:07:39.040 a hybrid from a Toyota, right, and so it's not 0:07:39.120 --> 0:07:42.600 necessarily the case that a consumer is only going to 0:07:43.040 --> 0:07:45.640 buy an electric vehicle. And sort of stuck on that, 0:07:46.520 --> 0:07:51.080 I do think that subsidies. While Musk absolutely to your point, 0:07:51.240 --> 0:07:54.160 he's been quite consistent over the years and saying and saying, 0:07:54.560 --> 0:07:57.239 you know, do away with subsidies, Tesla will be fine, 0:07:57.520 --> 0:07:59.640 I think it's it's hard to sort of take him 0:07:59.640 --> 0:08:03.240 at his word in saying that when we're not talking 0:08:03.240 --> 0:08:06.200 about a small amount of money for the consumer in 0:08:06.200 --> 0:08:08.800 the US. We're talking about up to seventy five hundred 0:08:08.800 --> 0:08:12.360 dollars for the you know buyer who who you know. 0:08:12.440 --> 0:08:15.920 If this is taken away as the Senate Republicans want 0:08:15.960 --> 0:08:19.200 to expedite this, you know, phasing it out in September, 0:08:19.440 --> 0:08:22.400 that's a huge deal for Tesla. And it's not just 0:08:22.520 --> 0:08:25.280 that that you know, the company is sort of you know, 0:08:25.360 --> 0:08:29.200 coming under target from Republicans. It's also you know, things 0:08:29.240 --> 0:08:33.600 like funding for manufacturing tax credits, you know, ZEV credits, 0:08:33.800 --> 0:08:36.920 regulatory credits set the company sells to other automakers. So 0:08:37.520 --> 0:08:40.680 this is a much broader sort of you know, offering 0:08:40.679 --> 0:08:43.760 of subsidies or you know, forms of government support that 0:08:43.800 --> 0:08:45.880 would really hurt Tesla if they were to go away. 0:08:47.360 --> 0:08:50.319 Roughly forty percent of Tesla's profits are at risk due 0:08:50.360 --> 0:08:53.240 to the shifting regulatory landscape. That's what JP Morgan Analysts 0:08:53.280 --> 0:08:57.160 are currently putting an estimate of th most Creatrudell brilliant 0:08:57.160 --> 0:08:59.520 to have you, thank you. Let's talk about owning this 0:08:59.640 --> 0:09:02.800 stock should be included and ETFs like that of define 0:09:02.800 --> 0:09:07.000 sylviagel Blonski's with us, She's defines ETF CEO CIO and 0:09:07.440 --> 0:09:10.719 we start with Tesla and Mosk. I think you've articulated 0:09:10.800 --> 0:09:14.320 that you don't have exposure across the ets particularly to Tesla. 0:09:14.440 --> 0:09:17.160 Is that because of the role Musk plays or other things? 0:09:18.800 --> 0:09:21.720 Good morning and thank you for having me. No, that's 0:09:21.760 --> 0:09:24.760 not really defiant. Specific Our ETFs are in the quantum 0:09:24.880 --> 0:09:28.520 computing space, right and six G, which is the next 0:09:28.559 --> 0:09:31.280 shed of communication really, So it's just that we don't 0:09:31.320 --> 0:09:35.520 happen to you know, track the space or that particular 0:09:35.559 --> 0:09:39.720 product within those funds. But that being said, you know, 0:09:40.559 --> 0:09:43.640 I think that if there were an opportunity to hold Tesla, 0:09:43.679 --> 0:09:46.400 it's not something that we would necessarily be opposed to, right, 0:09:46.440 --> 0:09:48.520 I think that a lot of what's happening now is 0:09:48.920 --> 0:09:51.840 noise around politics. And you know there is some potential 0:09:51.840 --> 0:09:55.080 downside if this tax bill removed seventy five hundred dollars 0:09:55.120 --> 0:09:58.439 with of credit. I mean that subsidies affect sales in 0:09:58.720 --> 0:10:02.640 the long run. They rarely go on skate if passed. 0:10:02.679 --> 0:10:05.640 But you know that aside, I mean, Elon Musk is 0:10:05.679 --> 0:10:08.720 still Elon Musk. And you know the genius of robotaxis 0:10:08.760 --> 0:10:13.040 and driverless cars in home robots which one day could 0:10:13.200 --> 0:10:15.440 could be a staple in all of our homes. You know, 0:10:15.559 --> 0:10:19.080 I don't count the company or the CEO out regardless 0:10:19.080 --> 0:10:20.120 of this feud. 0:10:21.559 --> 0:10:25.960 So do you not even bake in as a potential 0:10:26.040 --> 0:10:28.280 ire of You know, you got plenty of leverage dtfs 0:10:28.320 --> 0:10:30.640 for example on single names, and whether or not eventually 0:10:30.679 --> 0:10:33.400 it'd want to be giving that sort of volatile exposure 0:10:33.440 --> 0:10:37.560 to your own client based Sylvia, would you ever hypothesize 0:10:37.559 --> 0:10:40.199 that such a leader in technology could be asked to 0:10:40.280 --> 0:10:42.400 leave the country even that seems to me what's being 0:10:42.440 --> 0:10:43.520 implied by the president. 0:10:44.640 --> 0:10:46.839 That seems to be it's being implied, And there there 0:10:46.840 --> 0:10:49.320 are levered Tesla ETFs out there and they're you know, 0:10:49.400 --> 0:10:53.079 they're they're quite popular and are seeing you know, steady 0:10:53.120 --> 0:10:55.920 AUM growth and that's just you know, consequence of first 0:10:55.960 --> 0:10:59.920 movers got there. But you know, I can't really kinment 0:11:00.040 --> 0:11:03.000 too much on the citizenship aspect of it, but it 0:11:03.080 --> 0:11:05.520 is my understanding that Elon Musk is the US citizens 0:11:05.640 --> 0:11:07.920 I'm not sure you know. 0:11:09.880 --> 0:11:12.959 How that would go, Sylvia. 0:11:13.000 --> 0:11:17.120 When you compose an ETF is key man risk and 0:11:17.200 --> 0:11:20.199 the leadership of any given name part of the consideration. 0:11:22.280 --> 0:11:24.960 Yeah, so that that can always be a factor in 0:11:25.040 --> 0:11:27.000 terms of you know, it depends on the type of 0:11:27.040 --> 0:11:30.200 ETF that is structured and what it does. So you know, 0:11:30.240 --> 0:11:32.320 there have certainly been products in the market before where 0:11:32.320 --> 0:11:35.920 people are looking at you know, specific leaders and basing 0:11:36.040 --> 0:11:38.880 ETFs off of the types of CEOs that they want 0:11:38.880 --> 0:11:41.640 to invest in. You know, sometimes that's been in the 0:11:42.120 --> 0:11:45.800 ESG space. Sometimes that's been around DEI factors. Other times 0:11:45.800 --> 0:11:47.800 it's been around you know, kind of the tech lords 0:11:47.800 --> 0:11:50.560 and things like this. And so that's certainly a factor 0:11:50.600 --> 0:11:53.160 that can can play in. But I think most of 0:11:53.200 --> 0:11:56.880 the time, like when you're thinking about thematic ETX, for example, 0:11:57.200 --> 0:11:59.000 you're thinking about a theme and then you try to 0:11:59.000 --> 0:12:01.320 build in the products that X fit that theme, so 0:12:01.440 --> 0:12:03.679 quantum stocks for example. Right, you're not thinking so much 0:12:03.720 --> 0:12:05.599 about the CEO, but more about the company itself and 0:12:06.080 --> 0:12:06.680 what it does. 0:12:15.200 --> 0:12:19.679 Apple it is considering using AI technology from Anthropic or 0:12:19.679 --> 0:12:22.079 from open Ai to power a new version of Siri, 0:12:22.440 --> 0:12:26.440 sidelining its own in house models. If Apple moves forward 0:12:26.480 --> 0:12:29.439 with using third party models, it will represent a significant 0:12:29.440 --> 0:12:32.040 reversal and an acknowledgement that the company is struggling to 0:12:32.120 --> 0:12:35.440 compete in general to AI. Blue Meg's Mark German joins 0:12:35.520 --> 0:12:38.679 us for more. And this is a significant story, and 0:12:38.720 --> 0:12:42.520 it really puts the focus on the in house model 0:12:42.559 --> 0:12:44.720 builders and whether that's going to be something commit to. 0:12:47.000 --> 0:12:51.320 Absolutely right, this is a blockbuster idea for Apple. And 0:12:51.360 --> 0:12:53.400 I say it's an idea because they haven't made any 0:12:53.440 --> 0:12:57.080 final decisions here. Internally, they're investigating whether or not they 0:12:57.160 --> 0:13:01.400 should move away from their foundation models. That's their internal 0:13:01.480 --> 0:13:02.880 large language model system. 0:13:03.240 --> 0:13:04.599 Two chat GPT. 0:13:04.320 --> 0:13:07.960 From OpenAI, claud from Entthropic, or a different provider to 0:13:08.040 --> 0:13:11.600 power SII specifically, as you know, Siri hasn't really worked 0:13:11.640 --> 0:13:16.160 well for years, Right, and even with Apple Intelligence in 0:13:16.200 --> 0:13:19.360 a move to generative AI. It hasn't improved, and it's 0:13:19.400 --> 0:13:21.960 been over a year since they announced these AI features, 0:13:22.320 --> 0:13:24.120 and so they're taking a hard look if they should 0:13:24.120 --> 0:13:27.679 be using someone else's back end. Be a similar situation 0:13:27.840 --> 0:13:30.840 to Amazon, which uses claud for the new Alexa, and 0:13:30.920 --> 0:13:33.800 of course Samsung, which uses Google Gemini to power their 0:13:33.840 --> 0:13:35.600 AI system. 0:13:35.880 --> 0:13:38.200 Mark Apple's up one point seven percent today. It closed 0:13:38.240 --> 0:13:40.480 up two percent yesterday. There's a lot of evidence that 0:13:40.520 --> 0:13:44.120 the market is paying attention to this reporting. Part of 0:13:44.120 --> 0:13:46.679 what you reported is that Apple is asked Anthropic and 0:13:46.760 --> 0:13:49.400 open AI to go away and develop versions of their 0:13:49.440 --> 0:13:53.240 models that can run on Apple's cloud infrastructure, which also 0:13:53.280 --> 0:13:56.240 relies on custom silicon. Could you explain that a bit. 0:13:57.440 --> 0:14:00.440 So Right now, Apple has two types of AI, just 0:14:00.679 --> 0:14:01.440 to simplify it. 0:14:01.440 --> 0:14:03.560 They have on device AI and. 0:14:03.480 --> 0:14:05.800 That means the large language models run on the iPhone, 0:14:05.840 --> 0:14:06.640 the iPad. 0:14:06.280 --> 0:14:09.040 The Mac themselves. That's for lower. 0:14:08.760 --> 0:14:12.400 Tier tasks like summarizing an email. Then they have cloud 0:14:12.440 --> 0:14:15.480 based AI. They call that private cloud compute. This is 0:14:15.520 --> 0:14:19.200 for summarizing very long articles. This is for writing blocks 0:14:19.200 --> 0:14:23.400 of text. And Apple wants to use either Entropic or 0:14:23.400 --> 0:14:26.200 open AI, or at least they're considering them in the cloud. 0:14:26.360 --> 0:14:29.560 That's because those models require a lot more processing power 0:14:29.680 --> 0:14:31.960 and that can't be done on the phone itself. It's 0:14:32.000 --> 0:14:34.960 also more private. Instead of having models from a third 0:14:34.960 --> 0:14:38.360 party running deep into the iPhone infrastructure, they'll be running 0:14:38.360 --> 0:14:42.120 in the cloud, keep things more sectioned off from user data. 0:14:42.640 --> 0:14:45.360 And so that's the way they're looking about this. The 0:14:45.680 --> 0:14:48.800 idea here is that they're training these models right now 0:14:48.880 --> 0:14:51.480 in thropic and open AI. Apple's going to evaluate to 0:14:51.520 --> 0:14:54.480 see who's the best, and they very may well decide 0:14:54.480 --> 0:14:57.840 they're going to keep going with Apple Foundation models. Concurrently, 0:14:57.920 --> 0:15:01.680 they're developing a version of Siri for next spring that 0:15:01.840 --> 0:15:05.440 uses Apple Foundation models, but that it's a competing project 0:15:05.480 --> 0:15:07.240 to this open AI and anthropic idea. 0:15:07.360 --> 0:15:08.840 So we'll see what they end up doing. 0:15:08.960 --> 0:15:11.680 But the fact that they're heavily considering and evaluating this 0:15:11.960 --> 0:15:12.760 tells you everything you. 0:15:12.720 --> 0:15:13.080 Need to know. 0:15:14.000 --> 0:15:17.720 Bloomberg's Mark German, thank you very much. Now, Mark Zuckerberg 0:15:17.800 --> 0:15:21.760 has announced the restructuring of metas Artificial Intelligence group, now 0:15:21.800 --> 0:15:26.320 called Meta Superintelligence Labs, and he's stocking it full of 0:15:26.400 --> 0:15:29.640 hires from rival AI firms. Here with the story, bloombergs 0:15:29.680 --> 0:15:33.400 Kirt Wagner and actually This is confirmation via an internal 0:15:33.440 --> 0:15:37.040 memo from Zuckerberg and the team to metastaff of a 0:15:37.040 --> 0:15:39.840 lot of what we've reported over the last month. We 0:15:39.960 --> 0:15:46.520 have a superintelligence team. What was new in what Zuckerberg said, Yeah. 0:15:46.320 --> 0:15:48.520 I think what we learned today, to your point ed, 0:15:48.600 --> 0:15:51.040 is that this thing is official. We had been talking 0:15:51.040 --> 0:15:53.200 and reporting about this for a couple of weeks. Now 0:15:53.520 --> 0:15:56.560 I think what's new is that they listed in total, 0:15:56.680 --> 0:16:01.720 if you include Alexander Wang, team new hires for this team. 0:16:01.800 --> 0:16:04.240 So we did confirm a lot of the new members 0:16:04.280 --> 0:16:04.840 of the team. 0:16:05.120 --> 0:16:08.359 And we also learned that Nap Friedman, former. 0:16:08.120 --> 0:16:10.920 CEO GitHub, is going to sort of co run this 0:16:11.000 --> 0:16:14.400 new team with Alex Wang. So I get to sence 0:16:14.400 --> 0:16:16.600 alex Wange is perhaps in charge with Friedman as his 0:16:16.640 --> 0:16:19.720 number two, but either way, these two people are going 0:16:19.760 --> 0:16:21.560 to be atop this thing. It was something that I 0:16:21.600 --> 0:16:24.680 think we had long speculated and heard about. But again, 0:16:24.920 --> 0:16:27.560 all of this is now official, and this you know, 0:16:27.640 --> 0:16:34.720 it represents a huge restructuring and also a revision of 0:16:34.800 --> 0:16:37.360 what a meta wants to accomplish with AI. 0:16:38.560 --> 0:16:42.920 And the ability and willingness to spend. He articulated that 0:16:42.920 --> 0:16:46.160 he's willing to spend hundreds of billions on this race 0:16:46.200 --> 0:16:48.680 because there's no point coming second basically cut. 0:16:53.840 --> 0:16:56.160 I think that's the feeling is that if you are 0:16:56.200 --> 0:16:58.160 the first two AGI, if you are the first two 0:16:58.240 --> 0:17:01.240 human level AI intelligence, that's sort of all that's going 0:17:01.280 --> 0:17:01.520 to matter. 0:17:01.600 --> 0:17:02.240 At a certain point. 0:17:02.280 --> 0:17:04.200 I think everyone's going to catch up to this, right, 0:17:04.240 --> 0:17:07.479 If this is achievable, everyone will get there. But whoever 0:17:07.560 --> 0:17:09.520 is their first not only gets to sort of stake 0:17:09.600 --> 0:17:12.679 that claim, gets to use that to benefit recruiting and 0:17:12.800 --> 0:17:14.800 other things, but they're also going to be the first 0:17:14.840 --> 0:17:18.000 to sort of lower consumers to their various products that have, 0:17:18.160 --> 0:17:20.720 you know, an AI chatbot. So for example, if you're meta, 0:17:20.760 --> 0:17:23.200 you're looking at the ray band glasses and you think, wow, 0:17:23.240 --> 0:17:24.600 if we are the first people to come up with 0:17:24.640 --> 0:17:27.520 a human level AI assistant, then ray bands are going 0:17:27.560 --> 0:17:29.640 to fly off the shelves. At least that is the hope, right, 0:17:29.680 --> 0:17:32.359 And so I do think that while you know, presumably 0:17:32.359 --> 0:17:35.200 this might become ubiquitous tech, everyone wants to be there 0:17:35.240 --> 0:17:38.040 first for a number of reasons, the primary one being 0:17:38.080 --> 0:17:40.760 of course, to sell those products and to get consumers 0:17:40.840 --> 0:17:44.160 to their product first before the competitors. 0:17:50.840 --> 0:17:54.920 Big tech meets big football. Microsoft in the Premier League 0:17:54.960 --> 0:17:58.320 are launching a five year strategic partnership aimed at transforming 0:17:58.359 --> 0:18:01.480 how fans engage with the aim of football or soccer, 0:18:01.520 --> 0:18:04.760 however you call it, whether it's fantasy football, in match analysis, 0:18:04.800 --> 0:18:06.480 even a personal AI companion. 0:18:06.640 --> 0:18:07.280 Now we caught up. 0:18:07.240 --> 0:18:11.000 Exclusively with Microsoft UKCO. That's Darren Harnman and the Premier 0:18:11.080 --> 0:18:14.320 League Chief Commercial Officer Will Brass about the news. 0:18:15.359 --> 0:18:18.000 This is the partnership partnership like we have with the 0:18:18.040 --> 0:18:22.200 main Microsoft customers, transforming the core of how the Premier 0:18:22.320 --> 0:18:25.800 League works and operates and runs their business and extending 0:18:25.960 --> 0:18:28.840 into their customers, which is the fans. And so the 0:18:28.840 --> 0:18:32.399 fan experience is incredibly experienced. 0:18:31.720 --> 0:18:35.280 And it's just a privilege to be able to leverage. 0:18:34.800 --> 0:18:37.520 The power of the Microsoft co pilot and the broader 0:18:37.600 --> 0:18:41.320 AI technologies that we have to reach so many people 0:18:41.359 --> 0:18:43.520 in such a positive way. 0:18:44.320 --> 0:18:47.040 Well, same question to you, who's paying who? What's the 0:18:47.080 --> 0:18:48.600 commercial value of this deal to you? 0:18:50.320 --> 0:18:51.119 That's one for us. 0:18:51.160 --> 0:18:54.480 I think ed that what I would say is it's 0:18:54.520 --> 0:18:57.720 a truly mutual strategic partnership that we're entering into on 0:18:57.760 --> 0:19:01.240 a multi year basis. Were very excited about what the 0:19:01.240 --> 0:19:03.520 future may hold in that regard, and of course, as 0:19:03.560 --> 0:19:05.720 the Premier League, we're very lucky to work with a 0:19:05.800 --> 0:19:09.720 number of genuinely world class businesses and brands. We're a 0:19:09.720 --> 0:19:13.440 big part of our strate strategic work around the world. 0:19:13.920 --> 0:19:18.160 To add Microsoft to that family is really great moment 0:19:18.200 --> 0:19:18.720 for us. 0:19:19.280 --> 0:19:21.640 The wording you use will was add Microsoft. I've been 0:19:21.680 --> 0:19:25.520 tracking the Premier League from a data analytics standpoint for 0:19:25.560 --> 0:19:27.320 a number of years now. When I came to America 0:19:27.359 --> 0:19:30.280 in twenty eighteen, I really sort of took on board 0:19:30.920 --> 0:19:33.320 the role that the in game experience plays, but on 0:19:33.359 --> 0:19:36.560 the analytics and data side, fans have an essatial appetite 0:19:36.560 --> 0:19:39.360 for it. In twenty twenty one, you had a similar 0:19:39.400 --> 0:19:43.240 partnership with Oracle right on the analytics and data side. 0:19:43.840 --> 0:19:48.040 Is this announcement you replacing Oracle with Azure and Microsoft 0:19:48.119 --> 0:19:49.360 or is it in addition to. 0:19:52.240 --> 0:19:56.400 So the partnership with Oracle has now expired and this 0:19:56.440 --> 0:20:00.240 relationship with Microsoft is a new one. It Ultimately, all 0:20:00.240 --> 0:20:04.840 of our partnerships are different in nature, so there isn't 0:20:04.840 --> 0:20:07.360 a direct reader cross between the work that we did 0:20:07.359 --> 0:20:10.760 with Oracle the work that we do with Microsoft. Microsoft 0:20:11.000 --> 0:20:14.560 are becoming a partner in light of the technology transformation 0:20:14.640 --> 0:20:16.720 story that we're trying to go through. We think they're 0:20:16.720 --> 0:20:19.879 the perfect partner for that, and so we're excited to 0:20:19.880 --> 0:20:21.119 be to be moving ahead. 0:20:20.840 --> 0:20:22.080 To day together. 0:20:22.960 --> 0:20:26.480 Moving ahead today, Darren paint, what five years from now 0:20:26.560 --> 0:20:29.440 looks like it's a five year strategic partnership. How will 0:20:29.480 --> 0:20:32.520 my engagement with the Premier League have changed? You think? 0:20:33.840 --> 0:20:35.560 Yeah, I think this is the future of football. 0:20:35.760 --> 0:20:40.800 It's a data driven drama. It's smarter stats, it's deeper stories, 0:20:41.040 --> 0:20:44.720 it's a better connection of the fan to what's going on, 0:20:44.760 --> 0:20:45.880 and it's a life cycle. 0:20:46.080 --> 0:20:49.120 So you know, how do I start my experience. 0:20:48.640 --> 0:20:51.679 On the game day, what's my experience during the game, 0:20:51.880 --> 0:20:54.720