WEBVTT - Nvidia GTC, New FTC Chairman on the Trump Administration 0:00:02.720 --> 0:00:09.880 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.960 --> 0:00:15.680 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.120 --> 0:00:20.200 This is Bloomberg Technology with Caroline Hyde and. 0:00:20.360 --> 0:00:21.360 Ed Ludlow. 0:00:35.040 --> 0:00:37.159 Live from New York On Caroline Hyde. 0:00:37.200 --> 0:00:39.120 Man Achim Stenebeck in San Francisco. 0:00:39.320 --> 0:00:41.400 This is Bloomberg Technology coming up. 0:00:41.440 --> 0:00:43.800 All eyes on Video is the tech community gears up 0:00:43.800 --> 0:00:47.000 for the company's GtC conference this week. Will discuss what 0:00:47.159 --> 0:00:51.280 investors expect from US. Our conversation with FTC Chairman Andrew 0:00:51.360 --> 0:00:56.000 Ferguson on how it's prioritizing big tech, and two NASA 0:00:56.080 --> 0:00:59.440 astronauts will soon return to Earth a water SpaceX Dragon 0:00:59.520 --> 0:01:03.280 capsule after more than nine months stuck in space. The 0:01:03.360 --> 0:01:07.000 first we return to this particular area of the world. 0:01:07.080 --> 0:01:09.319 Evan checking on the markets. We're off by tenth percent 0:01:09.319 --> 0:01:11.360 on the nast that one hundred. We can flip flopping 0:01:11.400 --> 0:01:13.960 between gains and losses, but ultimately underwater after what have 0:01:14.080 --> 0:01:16.959 been a stellar rally on Friday, but the points drags 0:01:16.959 --> 0:01:20.759 of the downside are significant. You've got Tesla, Apple, Amazon, Brolcon, 0:01:20.880 --> 0:01:25.000 Meta MicroStrategy, Google, but in video a key one as well. 0:01:25.440 --> 0:01:27.600 The biggest points drag on the day off by some 0:01:27.800 --> 0:01:30.559 twenty eight points, dragging then as that one hundred lower 0:01:30.640 --> 0:01:32.560 as we see in video. Just seeing a little bit 0:01:32.600 --> 0:01:35.800 of cautious trading of course ahead of the all important 0:01:35.840 --> 0:01:39.160 GtC event this week. What can Jensen Wang articulate to 0:01:39.240 --> 0:01:44.319 steady nerves? We're currently off by one point eight percent him. 0:01:43.240 --> 0:01:45.480 Well, as you mentioned in video, shares are lower the 0:01:45.480 --> 0:01:48.880 company kicking off its annual GtC conference this week. Investors 0:01:48.880 --> 0:01:51.720 are focused in on CEO Jensen Wong's keynotes set to 0:01:51.720 --> 0:01:52.640 be delivered. 0:01:52.280 --> 0:01:54.080 Tomorrow for what we can't expect. 0:01:54.080 --> 0:01:56.920 Bloomberg's Carmen Ranicky joins us Now, Carmen, good to see you. 0:01:57.360 --> 0:01:59.240 What does Jensen need to do tomorrow? 0:01:59.240 --> 0:02:01.240 What does he need to take hell investors to show 0:02:01.520 --> 0:02:03.960 that earnings haven't peaked and growth hasn't peaked. 0:02:04.240 --> 0:02:06.000 Yeah, those are really the key things. I think what 0:02:06.080 --> 0:02:09.160 investors are looking for is that demand is good, that 0:02:09.760 --> 0:02:12.519 they're seeing people wanting to buy, you know, the next 0:02:12.560 --> 0:02:15.960 iteration of chips they're blackwell, and that ultimately in Nvidia 0:02:16.120 --> 0:02:18.480 sees a ton of growth ahead that they're you know, 0:02:18.560 --> 0:02:21.680 still at the forefront of the AI trade. That they're 0:02:21.760 --> 0:02:23.840 seeing things that are that are good, that there's growth 0:02:23.880 --> 0:02:24.480 in the future. 0:02:25.200 --> 0:02:26.880 My question, though, is what more can he say that 0:02:26.919 --> 0:02:29.040 he didn't get across in his earnings. He tried to 0:02:29.040 --> 0:02:31.760 talk about that future, about the next scaling laws that 0:02:31.800 --> 0:02:35.680 are upon us, but it didn't refuel, regalvanize the trend 0:02:35.760 --> 0:02:38.200 higher for the stock. I think that's a really good point. 0:02:38.480 --> 0:02:41.200 I think something that investors are looking for is maybe 0:02:41.240 --> 0:02:44.200 more information on the macro level. I think that they'll 0:02:44.440 --> 0:02:46.880 potentially be looking for anything that can be said about 0:02:46.960 --> 0:02:50.080 China the impact there, and I think that there are 0:02:50.080 --> 0:02:52.800 also things outside of just chips that investors might be 0:02:52.840 --> 0:02:56.240 looking for, you know, hearing Jensen speak about things like 0:02:56.560 --> 0:03:00.760 robotics and you know, autonomous driving and other parts you know, 0:03:00.880 --> 0:03:04.160 just of the overall market where in Vidia chips could 0:03:04.160 --> 0:03:06.160 be used, I mean healthcare. You know, there are just 0:03:06.200 --> 0:03:10.920 so many instances in which AI could benefit different sectors 0:03:10.919 --> 0:03:13.720 and companies. So I think that that very future sort 0:03:13.720 --> 0:03:16.920 of view is something that people are really looking for, 0:03:17.480 --> 0:03:19.040 and we might also get, you know, a little bit 0:03:19.040 --> 0:03:22.280 more information on gross margins. That was something that was 0:03:22.680 --> 0:03:24.880 you know, very top of mind for investors coming off 0:03:24.919 --> 0:03:28.000 of the earnings, and so any clarity or optimism that 0:03:28.080 --> 0:03:31.160 Jensen could give there may also really lift the stock. 0:03:32.120 --> 0:03:35.000 We thank you comm and Ranicky on all things in Vidia. 0:03:35.120 --> 0:03:38.360 Can he vindicate the valuation? Let's talk about these valuations 0:03:38.360 --> 0:03:40.960 and broader tech markets. Tiffany Waders with US Columbia Thread Needles, 0:03:40.960 --> 0:03:44.200 senior portfolio manager, and we try to take stock on 0:03:44.280 --> 0:03:47.560 the cell off that's already occurred that we've seen tumbling 0:03:47.680 --> 0:03:50.400 ten percent so far this year, for example, like an Invidia, 0:03:50.440 --> 0:03:52.640 but we're training at twenty six times future earnings. Are 0:03:52.680 --> 0:03:55.440 these valuations more attractive yet? Or were still trying to 0:03:55.440 --> 0:03:56.480 catch a falling knife. 0:03:56.800 --> 0:03:58.840 I think we're starting to see the valuations for certain 0:03:58.880 --> 0:04:01.640 stocks are more attractive. If you think about Nvidia, for example, 0:04:01.720 --> 0:04:04.240 it's trading significantly cheaper than where it has been for 0:04:04.280 --> 0:04:07.120 the last couple of years, and it's trading significantly cheaper 0:04:07.160 --> 0:04:09.360 than other parts of the market like staples, while growing 0:04:09.440 --> 0:04:12.120 much faster. So there's certainly some areas of the market, 0:04:12.320 --> 0:04:14.440 you know, certainly with intact that have sold off quite 0:04:14.440 --> 0:04:16.160 a bit over the last couple of weeks. So we 0:04:16.200 --> 0:04:17.800 think the valuations do look attractive. 0:04:18.920 --> 0:04:23.880 Friday's moved notwithstanding, but we're still down significantly from all 0:04:23.960 --> 0:04:26.880 time hives hit earlier this year on the major indices. 0:04:26.880 --> 0:04:28.960 Do you think this is the end of the pullback, Tiffany, 0:04:29.080 --> 0:04:30.919 or is there more room to move lower. 0:04:31.480 --> 0:04:32.040 I think we're. 0:04:31.920 --> 0:04:33.960 Getting close to the end of the pullback, at least 0:04:33.960 --> 0:04:35.919 for the short term. So I think, you know, in 0:04:35.960 --> 0:04:37.360 the near term we might be able to see a 0:04:37.360 --> 0:04:39.120 bit of a bounce in the market. But in order 0:04:39.200 --> 0:04:42.360 for us to see sort of longer term sustainability of 0:04:42.400 --> 0:04:46.120 that bounce, I think we need to see some resolution 0:04:46.200 --> 0:04:47.240 of policy uncertainty. 0:04:47.320 --> 0:04:50.640 Right now, many wondering when we might get that, and 0:04:50.640 --> 0:04:54.240 that doesn't see certainty doesn't seem to be bothering ultimately 0:04:54.279 --> 0:04:56.720 the administration in terms of giving that to the markets 0:04:56.720 --> 0:04:59.880 at least, what does therefore a long time in the 0:05:00.279 --> 0:05:03.400 to decide when it comes to China, for example, at 0:05:03.400 --> 0:05:05.919 the moment, and whether or not you want globally focused 0:05:05.960 --> 0:05:08.880 stocks or whether you want actually US focused stocks right. 0:05:08.800 --> 0:05:10.680 Now, yeah, I think you need to focus on the 0:05:10.720 --> 0:05:13.680 fundamentals of the names, you know, what are the opportunities 0:05:13.720 --> 0:05:16.960 for the stocks, certainly within the US. Outside of the US, 0:05:17.400 --> 0:05:20.560 there's a lot more enthusiasm for stocks that are based 0:05:20.600 --> 0:05:22.040 in Europe, right now. But I think we need to 0:05:22.040 --> 0:05:26.120 focus on the fundamentals, you know, even with the policy uncertainty, 0:05:26.160 --> 0:05:28.640 and look through some of this to what the longer 0:05:28.720 --> 0:05:29.479 term picture is. 0:05:29.720 --> 0:05:33.520 Fundamentals Maney would say haven't changed in the last few 0:05:33.520 --> 0:05:37.120 weeks despite the never ending, ceaseless sell off. So from 0:05:37.200 --> 0:05:39.760 your perspective, has it been a just weighed out this 0:05:39.839 --> 0:05:42.920 sort of volatility and what fundamentals do you try and 0:05:42.960 --> 0:05:43.560 focus in on. 0:05:44.240 --> 0:05:46.520 Yeah, I think companies are seeing a bit of a 0:05:46.640 --> 0:05:48.960 change in the fundamentals. If we do see tariffs being 0:05:49.080 --> 0:05:51.440 enacted right now, A lot of companies are kind of 0:05:51.440 --> 0:05:53.360 sitting on their hands for the year, waiting to see 0:05:53.360 --> 0:05:56.320 what the policies will be and how those might impact 0:05:56.320 --> 0:05:57.839 their cost for the year. So I think there's a 0:05:57.839 --> 0:06:02.120 lot of waiting and seeing in terms of companies deciding 0:06:02.160 --> 0:06:05.800 how to deploy their budgets for the year. But you're right, 0:06:05.839 --> 0:06:08.360 I think for the most part, the fundamentals haven't changed. 0:06:08.480 --> 0:06:10.920 What could cause a change in the fundamentals is if 0:06:10.960 --> 0:06:13.960 we see a very long drawn out period of policy 0:06:14.040 --> 0:06:17.800 uncertainty that leads to lower consumer spending, lower corporate spending, 0:06:18.520 --> 0:06:20.360 which then impacts economic growth. 0:06:20.960 --> 0:06:22.839 Okay, so let's talk a little bit about that Tiffany, 0:06:22.839 --> 0:06:25.719 because this administration doesn't seem that bothered about this selloff. 0:06:25.720 --> 0:06:28.680 Scott Bessen said as much yesterday, President Trump saying as 0:06:28.760 --> 0:06:32.680 much the weekend before. Are you confident that this administration 0:06:32.760 --> 0:06:35.840 can implement these pro growth policies that it keeps talking about. 0:06:35.880 --> 0:06:38.799 It's saying to investors, essentially, patients, patients, When we figure 0:06:38.800 --> 0:06:40.919 out tax cuts, when we push those through, when we 0:06:40.960 --> 0:06:43.320 get companies to start making stuff here in the US, again, 0:06:43.560 --> 0:06:44.480 everything will be fine. 0:06:45.360 --> 0:06:47.440 I do think that we see policies out of the 0:06:47.440 --> 0:06:51.040 administration that are potentially pro growth and are balancing some 0:06:51.080 --> 0:06:55.680 of the other policies like higher tariffs that might impact pricing, inflation, 0:06:55.960 --> 0:06:58.880 and consumer spending. But again, I think it comes down 0:06:58.920 --> 0:07:02.200 to the uncertainty around tariffs does some of the other policies, 0:07:02.200 --> 0:07:05.040 And if we can get some certainty, then I think 0:07:05.080 --> 0:07:08.200 we see a resumption of consumer and corporate spending. And 0:07:08.279 --> 0:07:11.160 companies for the most part have plans on how they 0:07:11.200 --> 0:07:16.040 would offset tariffs, which might impact some consumer pricing, but overall, 0:07:16.080 --> 0:07:19.360 I think the consumer is still strong, So I really 0:07:19.360 --> 0:07:21.480 think it comes down to that uncertainty which is causing 0:07:21.480 --> 0:07:23.720 a lot of consumers and corporates to be on hold. 0:07:23.480 --> 0:07:24.000 For the moment. 0:07:24.760 --> 0:07:27.120 Okay, so raises the question of the federal reserve, And 0:07:27.160 --> 0:07:29.280 with the Federal Reserve, we'll do this week. Of course, 0:07:29.320 --> 0:07:31.880 the policy meeting kicking off tomorrow, we'll hear from Jay 0:07:31.920 --> 0:07:35.600 Powell on Wednesday. What's the needle that he actually has 0:07:35.640 --> 0:07:39.640 to thread in providing an outlook and communicating for the 0:07:39.640 --> 0:07:42.280 remainder of the year what FED policy looks like. 0:07:43.120 --> 0:07:45.480 Yeah, I think there's a chance that we see some 0:07:45.640 --> 0:07:47.760 changes to FED policy, maybe some lower rates in the 0:07:47.800 --> 0:07:50.120 second half of the year, But for right now, there's 0:07:50.120 --> 0:07:52.480 still a lot of indicators that the economy is still 0:07:52.520 --> 0:07:57.360 strong and that inflation is coming down but is not 0:07:57.480 --> 0:07:59.960 yet totally at tamed. So he certainly has to walk 0:08:00.160 --> 0:08:03.400 a fine line between acknowledging that we're seeing some signs 0:08:03.840 --> 0:08:07.679 of things like higher unemployment rates, maybe some lower consumer 0:08:07.720 --> 0:08:11.000 spending in the near term, but overall, the key indicators 0:08:11.000 --> 0:08:13.280 that they look at are still not indicating that it's 0:08:13.440 --> 0:08:15.360 maybe time for them to move in terms of policy 0:08:15.400 --> 0:08:16.000 quite yet. 0:08:16.280 --> 0:08:19.640 Tiffany, I remember back in November of last year, when 0:08:19.720 --> 0:08:22.000 we knew the administration was going to be new, but 0:08:22.120 --> 0:08:24.800 hadn't come in. You were articulating how you thought, really, 0:08:24.840 --> 0:08:26.600 Tariss aware, it's going to be the pressure point for 0:08:26.680 --> 0:08:30.560 tech but also regulatory stances. How do you feel that 0:08:30.600 --> 0:08:33.600 this current administration feels about big tech and ultimately some 0:08:33.640 --> 0:08:36.440 of the antitrust weight that's on a meta, on an alphabet, 0:08:36.480 --> 0:08:37.239 on a Microsoft. 0:08:37.640 --> 0:08:38.720 Yeah, I think it's unclear. 0:08:38.720 --> 0:08:41.960 We haven't seen a lot of regulatory changes around from 0:08:41.960 --> 0:08:44.440 this administration. I think one thing we have heard from 0:08:44.480 --> 0:08:47.040 them is that in terms of things like M and A, 0:08:47.160 --> 0:08:49.320 they want to make the process a lot smoother for companies. 0:08:49.400 --> 0:08:51.480 So that may not be helpful for the big tech names, 0:08:51.480 --> 0:08:54.679 which might be under scrutiny still for any type of 0:08:54.840 --> 0:08:56.640 M and A, but I think that they are trying 0:08:56.640 --> 0:09:00.720 to be a little bit more favorable or you know, 0:09:00.840 --> 0:09:02.880 more helpful for companies that are looking to do any 0:09:02.920 --> 0:09:05.320 sort of corporate action by at least, you know, speeding 0:09:05.400 --> 0:09:06.000 up the process. 0:09:07.040 --> 0:09:10.040 Tiffany Wade of Columbia Threadneedle joining us on a set 0:09:10.160 --> 0:09:11.040 in New York City. 0:09:11.040 --> 0:09:12.560 Thanks so much well. 0:09:12.640 --> 0:09:15.240 China's internet search leader by Do released a new AI 0:09:15.320 --> 0:09:18.360 model that articulates its reasoning in an apparent bid to 0:09:18.559 --> 0:09:21.079 regain momentum against rivals like deep Seek. 0:09:21.400 --> 0:09:23.319 The company says its new model. 0:09:23.080 --> 0:09:27.000 Called ernie x one excels in areas like daily dialogues, 0:09:27.160 --> 0:09:30.040 complex calculations, and logical deduction. 0:09:37.760 --> 0:09:40.280 The FDC is not taking its foot off the gas 0:09:40.320 --> 0:09:41.680 when it comes to enforcement action. 0:09:41.880 --> 0:09:42.040 Now. 0:09:42.080 --> 0:09:44.839 That's according to its chairman Andrew Ferguson. We sat down 0:09:44.840 --> 0:09:47.680 with him earlier today to discuss the FDC's mission under 0:09:47.720 --> 0:09:51.160 the second Trump administration and how he will approach dealing 0:09:51.280 --> 0:09:52.600 with big tech. Just take a listen. 0:09:53.520 --> 0:09:56.080 I think if you are a big tech company, you 0:09:56.160 --> 0:10:00.199 should be getting your lawyers to give you great advice 0:10:00.280 --> 0:10:04.160 on complying with our competition and consumer protection laws. Look, 0:10:04.400 --> 0:10:07.319 I don't have a particular acts to grind within the industry, 0:10:07.800 --> 0:10:10.200 but I do think it's very important that the FTC 0:10:10.360 --> 0:10:13.960 devote its resources to the markets that Americans most frequently 0:10:14.040 --> 0:10:17.040 engage with. It's not just big tech, although that's definitely 0:10:17.120 --> 0:10:20.560 one of them. It's also healthcare, and it's protecting American 0:10:20.600 --> 0:10:24.000 as laborers. But no matter who you are, I think 0:10:24.040 --> 0:10:27.840 it's important to proceed like the FTC is a vigilant 0:10:27.880 --> 0:10:30.760 cop on the beat. We're surveying the markets, We're looking 0:10:30.760 --> 0:10:33.840 for competition, problems. We're looking for violation of the consumer 0:10:33.880 --> 0:10:35.559 protection laws, and if we. 0:10:35.520 --> 0:10:37.120 Think they're there, we're going to go to court. 0:10:37.200 --> 0:10:40.679 But most importantly, if we don't think that there are problems, 0:10:40.960 --> 0:10:43.400 it's really important for the FTC to get out of 0:10:43.440 --> 0:10:46.480 the way. Again, one of the most consistent complaints that 0:10:46.520 --> 0:10:49.200 I've heard about the previous administration was a lack of 0:10:49.280 --> 0:10:52.680 certainty and a tendency to want to do a lot 0:10:52.679 --> 0:10:54.319 of regulating the FTC. 0:10:54.720 --> 0:10:56.840 We're not regulators. We're cops on the beat. 0:10:57.160 --> 0:11:01.200 We police for competition problems and consumer protection problems, but 0:11:01.240 --> 0:11:03.400 we're not trying to regulate the economy. We want to 0:11:03.400 --> 0:11:08.200 create economic conditions that allow companies to innovate, to grow, 0:11:08.280 --> 0:11:10.160 and to help lift the whole country out of this 0:11:10.240 --> 0:11:13.199 debt crisis and bring about the golden age that President 0:11:13.679 --> 0:11:15.960 Trump has promised the American people. 0:11:15.760 --> 0:11:18.120 Talk about striking that balance because many would say, if 0:11:18.120 --> 0:11:20.880 I look at Europe, they regulate too much. There's too 0:11:21.000 --> 0:11:24.360 much enforcement. But in many ways they're being a strict 0:11:24.520 --> 0:11:27.800 coup on the beat. Some would say, so from your perspective, 0:11:28.000 --> 0:11:31.000 are you seeing overregulation in Europe? And is there a 0:11:31.040 --> 0:11:34.560 worry about stifling innovation in the United States by the 0:11:34.600 --> 0:11:36.840 amount of focus you have on big tech right now. 0:11:37.440 --> 0:11:40.720 Well, I do think that Europe has a real regulatory 0:11:40.760 --> 0:11:44.400 problem that has an innovation problem, and we definitely don't 0:11:44.400 --> 0:11:47.440 want to create conditions here in the United States that 0:11:47.559 --> 0:11:50.040 suppress innovation. But I think it's important to bear in 0:11:50.080 --> 0:11:55.080 mind monopoly suppresses innovation. Monopoly makes it very difficult for 0:11:55.200 --> 0:11:58.160 little companies with the next great idea to sort of rise. 0:11:58.960 --> 0:12:00.760 And I think it's very important if we want to 0:12:00.840 --> 0:12:04.840 sort of preserve the American innovating spirit, that we create 0:12:04.880 --> 0:12:08.560 conditions in our economy that allow little tech who have 0:12:08.640 --> 0:12:11.680 the next great ideas, the next life changing ideas for 0:12:11.760 --> 0:12:15.679 all Americans to thrive. President Trump has been pretty emphatic 0:12:15.840 --> 0:12:19.200 on the importance of making sure that our economics system 0:12:19.320 --> 0:12:22.520 allows little tech to bring its ideas to market. And 0:12:22.559 --> 0:12:26.440 that's what antitrust really does, is it prevents monopoly, and 0:12:26.480 --> 0:12:30.280 monopoly stifles innovation. So if the antitrust cops are vigilant 0:12:30.559 --> 0:12:34.679 and are making sure that they're protecting us from competition problems, 0:12:34.880 --> 0:12:38.000 it allows the innovation that has made America and our 0:12:38.040 --> 0:12:40.720 economy sort of the driving engine of the whole world. 0:12:41.559 --> 0:12:44.320 What deals do you think can get done. Is there 0:12:44.360 --> 0:12:46.680 any prescription you can give as to this MNA will 0:12:46.679 --> 0:12:48.559 look good if you are a big tech hying a 0:12:48.640 --> 0:12:49.120 little tech. 0:12:49.760 --> 0:12:51.720 I think that the deals that can get done are 0:12:51.720 --> 0:12:54.880 the deals that are lawful. And I think the most 0:12:54.920 --> 0:12:57.280 important thing I want to take away from this is. 0:12:57.880 --> 0:12:59.800 I see it as my job. 0:12:59.480 --> 0:13:04.040 To screw deals consistently with the timeline Congress created. 0:13:03.600 --> 0:13:04.800 And our antitrust laws. 0:13:05.280 --> 0:13:07.520 And if we think that they are illegal and we 0:13:07.600 --> 0:13:09.400 think that we can win in court, We're going to 0:13:09.480 --> 0:13:10.000 go to court. 0:13:10.240 --> 0:13:12.040 But if we don't think that they. 0:13:11.960 --> 0:13:14.319 Are illegal or we don't think we can win in court, 0:13:14.679 --> 0:13:16.920 the FTC is going to get out of the way again. 0:13:17.080 --> 0:13:19.520 I've heard this complain a lot from the business community 0:13:19.559 --> 0:13:22.520 that in the previous administration, a deal would enter the 0:13:22.559 --> 0:13:25.120 FTC and it would sort of disappear, and sometimes it 0:13:25.160 --> 0:13:29.560 could disappear for months while you know, novel ideas were floated, 0:13:29.640 --> 0:13:33.200 different theories, and sometimes it sort of seemed like the 0:13:33.280 --> 0:13:36.720 FTC was hoping that deals would die on the vine 0:13:36.800 --> 0:13:38.800 while they waited for regulatory clearance. 0:13:39.040 --> 0:13:40.320 I want nothing to do with that. 0:13:40.800 --> 0:13:42.679 If a deal is illegal and I think we can 0:13:42.720 --> 0:13:44.400 win in court, I'm going to go to court. But 0:13:44.480 --> 0:13:46.200 if it's not, we're going to get out of the 0:13:46.200 --> 0:13:49.120 way and we're going to let deals go forward. M 0:13:49.120 --> 0:13:51.880 and A is part of how the economy grows. It's 0:13:51.920 --> 0:13:55.680 an important part of fostering a system that allows for 0:13:55.720 --> 0:13:59.480 innovation and dynamism. But we have to make sure that 0:13:59.559 --> 0:14:02.360 we don't create monopoly, and I see that as my job. 0:14:02.800 --> 0:14:03.719 If we think there's a. 0:14:03.679 --> 0:14:06.880 Monopoly problem, then the government's going to intervene. But if not, 0:14:06.920 --> 0:14:08.559 we've got to get out of the way as quickly 0:14:08.600 --> 0:14:10.440 as possible and let the economy grow. 0:14:10.480 --> 0:14:12.880 Does the AI space look like it's thriving or do 0:14:12.920 --> 0:14:14.680 you worry about monopolistic behavior there? 0:14:15.280 --> 0:14:18.040 Yeah, I think it is extremely important that we protect 0:14:18.120 --> 0:14:20.800 competition in the AI space, But I think it is 0:14:20.880 --> 0:14:24.160 equally important that the government not race to regulate AI. 0:14:25.760 --> 0:14:28.960 Vice President Vance's speech in Europe on AI, I think 0:14:29.120 --> 0:14:32.120 is about the perfect way to thread this needle. We've 0:14:32.160 --> 0:14:34.840 got to ensure that there's competition. We got to ensure 0:14:34.840 --> 0:14:40.040 there's competition because competition promotes promotes innovation. But we can't 0:14:40.080 --> 0:14:43.280 have the government come in with a heavy regulatory hand 0:14:43.640 --> 0:14:47.680 and stifle innovation. Again, we don't want monopoly stifling innovation. 0:14:48.000 --> 0:14:51.440 We don't want big government stifling innovation. And admittedly that's 0:14:51.440 --> 0:14:53.320 not an easy needle to thread, but that's how I 0:14:53.320 --> 0:14:57.400 think about it, is protect competition, but don't over regulate AI, 0:14:57.800 --> 0:15:00.520 because that's exactly how we're going to kill the innovative 0:15:00.600 --> 0:15:01.520 prospects of AI. 0:15:02.360 --> 0:15:04.440 You started all of this by talking about the very 0:15:04.440 --> 0:15:07.640 close look you're going to take at every enforcement action 0:15:07.760 --> 0:15:09.480 that's out there at the moment, whether you pursue it 0:15:09.560 --> 0:15:12.280 or not, But just that assessment takes a lot of labor. 0:15:12.720 --> 0:15:15.080 You've also said you've got the resources. 0:15:15.600 --> 0:15:17.160 I know everyone's been to asking you about. 0:15:17.000 --> 0:15:20.200 What this lawyer said in court yet last week regarding 0:15:20.320 --> 0:15:23.520 the Amazon Prime deal, and ultimately you've been saying he 0:15:23.640 --> 0:15:25.680 was wrong, and they came out and said that, no, 0:15:25.720 --> 0:15:27.960 we do have enough resources, even though he said there's 0:15:27.960 --> 0:15:31.000 an extremely severe resource shortfall in terms of money and 0:15:31.000 --> 0:15:34.040 personnel at the FTC. Have you got the right amount 0:15:34.040 --> 0:15:36.440 of people and how are you living up to Doge's 0:15:36.440 --> 0:15:38.200 necessities to slim. 0:15:37.840 --> 0:15:40.880 Down Well, I didn't say that the lawyer was wrong. 0:15:40.920 --> 0:15:43.480 The lawyer said the lawyer was wrong. He filed something 0:15:43.520 --> 0:15:46.400 almost immediately after his statements of the court, explaining we 0:15:46.440 --> 0:15:49.440 don't have the resource constraints that he thought. We don't 0:15:49.440 --> 0:15:52.160 have resource constraints. I've said from day one, we've got 0:15:52.200 --> 0:15:56.680 the resources to litigate these cases. That remains true. But 0:15:56.760 --> 0:15:58.840 I also want to be clear. I think that the 0:15:58.880 --> 0:16:01.880 President's efficiency agenda is one of the most important things 0:16:01.880 --> 0:16:04.800 going in government right now. Government should not be any 0:16:04.880 --> 0:16:08.400 larger than necessary to deliver the services and protections that 0:16:08.600 --> 0:16:12.040 the American people deserve. And at the FTC, look, we're 0:16:12.040 --> 0:16:14.480 a lean operation. Our budget is less than half a 0:16:14.480 --> 0:16:17.760 billion dollars. We've only got around thirteen hundred employees, and 0:16:17.760 --> 0:16:20.320 we deliver a lot of value for the American people. 0:16:20.920 --> 0:16:23.680 But we have got the resources we need to deliver 0:16:23.840 --> 0:16:27.880 on our competition mandate, our consumer protection mandate. But we're 0:16:27.920 --> 0:16:30.080 always looking to be as efficient as possible. 0:16:31.600 --> 0:16:32.280 Well, there you have it. 0:16:32.520 --> 0:16:36.080 FTC Chairman Andrew Ferguson in his interview with Caroline Hide 0:16:36.200 --> 0:16:38.760 just moments ago, Andrew in a very festive tie for 0:16:38.800 --> 0:16:41.280 the holiday I should know. Let's stay in Washington to 0:16:41.280 --> 0:16:44.360 break it all down with Mike Shephard. Hey, Mike, what 0:16:44.440 --> 0:16:48.320 are investors learning at this point about any daylight between 0:16:48.520 --> 0:16:52.440 Alena Kahn run FTC and an Andrew Ferguson run FTC. 0:16:52.600 --> 0:16:54.080 What are the differences that are emerging? 0:16:55.400 --> 0:16:55.560 Well. 0:16:55.600 --> 0:16:58.080 One of the differences that became clear in this interview 0:16:58.160 --> 0:17:01.160 is the speed with which he is promising to move 0:17:01.640 --> 0:17:03.960 and the decisiveness he said he. 0:17:03.920 --> 0:17:04.879 Will try to bring. 0:17:05.040 --> 0:17:09.960 He faulted the prior administration, the Biden administration, and the 0:17:10.040 --> 0:17:13.480 prior chair of the FTC for perhaps moving too slowly 0:17:13.800 --> 0:17:16.880 and deciding on some of these enforcement actions and whether 0:17:17.240 --> 0:17:20.280 to intervene to block a deal. Sometimes companies would be 0:17:20.320 --> 0:17:24.400 left hanging for months, uncertain about whether their transaction, their 0:17:24.440 --> 0:17:28.760 proposal would actually win the Commission's blessing. When he says, look, 0:17:28.800 --> 0:17:31.200 we'll try to give a thumbs up er thumbs down 0:17:31.520 --> 0:17:34.520 much more quickly and much more decisively, so that there 0:17:34.600 --> 0:17:37.320 is uncertainty removed from the equation. 0:17:38.000 --> 0:17:39.679 And he also made clear. 0:17:39.520 --> 0:17:41.800 That look, we are going to proceed with a number 0:17:41.840 --> 0:17:45.240 of these enforcement cases against big tech. Little tech is 0:17:45.280 --> 0:17:47.640 responsible for a lot of the innovation that we see 0:17:47.640 --> 0:17:51.000 in the economy. And the competition cases that are now 0:17:51.119 --> 0:17:54.960 really hitting their stride against Google, against Meta that are 0:17:54.960 --> 0:17:58.800 in court now, those were brought during Donald Trump's first administration, 0:17:59.160 --> 0:18:02.680 and he warrened is we heard very clearly lawyers for 0:18:02.800 --> 0:18:05.119 some of these big tech companies should be ready to 0:18:05.160 --> 0:18:07.800 make sure that they're complying with competition law. 0:18:08.280 --> 0:18:11.320 Some of the concern regarding just the sheer scale of 0:18:11.320 --> 0:18:14.960 big tech has been around artificial intelligence. It's interesting that 0:18:15.200 --> 0:18:17.800 here in New York looks as though the Governor Kathy 0:18:17.880 --> 0:18:20.280 Hokeel what's to cross the divide at the moment mind, 0:18:20.320 --> 0:18:22.359 wants to work with the administration when it comes to 0:18:22.359 --> 0:18:24.800 the AI Action Plan. Just talk us through what we're 0:18:24.800 --> 0:18:26.520 starting to see on a bipartisan nature. 0:18:27.760 --> 0:18:30.199 Well, it was interesting to see her way in so 0:18:30.359 --> 0:18:34.399 quickly with New York State's vision for how the AI 0:18:34.480 --> 0:18:38.520 plan that is being pulled together by Donald Trump's AI ZR. 0:18:38.640 --> 0:18:40.600 David Sachs at the White House. 0:18:40.480 --> 0:18:43.199 With a June deadline to pull this new vision for 0:18:43.280 --> 0:18:47.120 AI policy together. She is the first governor to put 0:18:47.160 --> 0:18:50.639 in a state's vision for how that plan should come together. 0:18:50.960 --> 0:18:53.879 She called for a couple of things. One encourage adoption 0:18:54.080 --> 0:18:57.679 of AI across the board more widely in industries. 0:18:57.760 --> 0:18:59.439 To do more to. 0:18:59.480 --> 0:19:03.679 Revise intellectual property protection laws so that there is a 0:19:03.760 --> 0:19:07.480 less of this uncertainty surrounding all the data that these 0:19:07.600 --> 0:19:10.199 large language models need to be able to run and 0:19:10.240 --> 0:19:12.240 to be able to work and to train. And then 0:19:12.280 --> 0:19:14.760 three the energy question. This is one we've talked about 0:19:14.800 --> 0:19:17.760 so much. Here they're even talking about nuclear energy. And 0:19:17.800 --> 0:19:20.280 there's a lot at stake for New York because Micron 0:19:20.359 --> 0:19:24.040 is building those big factories that got chipsacked money upstate, 0:19:24.440 --> 0:19:26.439 and they want to make sure that New York is 0:19:26.480 --> 0:19:27.680 getting a piece of the action. 0:19:27.800 --> 0:19:30.800 Here, Max, Mike Sheffind, we thank you so much. The 0:19:30.880 --> 0:19:34.159 latest from Washington now coming up. Klana officially files for 0:19:34.240 --> 0:19:37.480 an IPO and it dethrones a firm to become a 0:19:37.520 --> 0:19:40.440 Walmart partner. More on that next. As a promote technology 0:19:46.040 --> 0:19:49.399 payment's firm, Klana, It's felled publicly for a US IPO, 0:19:49.520 --> 0:19:52.120 showing the company's revenue jump twenty four percent last year. 0:19:52.320 --> 0:19:54.920 The company also today announcing that it will be partnering 0:19:54.920 --> 0:19:57.400 with Walmart to offer buy Now, Pay Later to more 0:19:57.520 --> 0:20:00.120 US shoppers. It's actually replacing a firm as a retail 0:20:00.200 --> 0:20:04.440 Jant's fast credit option for more Boberg's Bailey Lipshaw's choice US. Now, 0:20:04.480 --> 0:20:06.679 I go to Today's news because this is quite an 0:20:06.720 --> 0:20:08.960 upending of the relationship for a firm, right. 0:20:08.960 --> 0:20:10.480 Yeah, it's a big change, and as you can see, 0:20:10.480 --> 0:20:12.720 a firm down more than ten percent, this coming the 0:20:12.720 --> 0:20:16.040 company announcing in a statement that Walmart alone accounts for 0:20:16.040 --> 0:20:18.720 about five percent of its gross merchandise volume in about 0:20:18.720 --> 0:20:22.359 two percent of suggested operating income. So pretty sizeable chunk, 0:20:22.400 --> 0:20:25.760 not quite the size of an Amazon or Shopify, but 0:20:25.800 --> 0:20:29.280 obviously a big move for a firm, And obviously, if 0:20:29.280 --> 0:20:32.040 you're Klarna, announcing this right after you launch your IPA 0:20:32.200 --> 0:20:34.760 or file for your IPO publicly is kind of big. 0:20:34.600 --> 0:20:39.360 News on that ipo. Bailey, what took Klarna so long? 0:20:39.400 --> 0:20:41.520 I mean, this is a company that is almost as 0:20:41.560 --> 0:20:44.880 old as Facebook, trying. 0:20:44.720 --> 0:20:46.199 To get it right, tim When you look back, this 0:20:46.240 --> 0:20:49.080 is a company that at one point was valued magnitudes 0:20:49.119 --> 0:20:51.199 higher back in twenty twenty one, Soft Bank cutting a 0:20:51.200 --> 0:20:55.200 sizeable check and ramping up its valuation more recently private 0:20:55.280 --> 0:20:58.119 valuation around fourteen point six billion dollars. So trying to 0:20:58.200 --> 0:21:01.200 right size the operations, trying to grow back into that valuation. 0:21:01.440 --> 0:21:02.800 Even if you look at a firm, this is a 0:21:02.800 --> 0:21:05.240 stock that's up thirty two percent on a trailing twelve 0:21:05.280 --> 0:21:08.119 month basis, trading around forty five bucks. Just a last 0:21:08.160 --> 0:21:10.920 month it was north of eighty, so a lot of volatility, 0:21:11.080 --> 0:21:13.800 and as much as a Klarna management team will want 0:21:13.840 --> 0:21:16.720 to pitch you on different kind of offerings and diversification, 0:21:16.920 --> 0:21:18.640 at the end of the day, the buyside is going 0:21:18.680 --> 0:21:21.760 direct to directly compare this company to a firm who 0:21:21.840 --> 0:21:24.439 is still well below the peak that it hit back 0:21:24.440 --> 0:21:25.879 in twenty twenty one when it was traded for one 0:21:25.920 --> 0:21:27.520 hundred and sixty nine dollars a share. 0:21:27.960 --> 0:21:32.159 Swedish founders coming to the US very briefly, Baby, anything 0:21:32.240 --> 0:21:34.600 worrying in that IPO listing, not. 0:21:34.600 --> 0:21:37.159 Really nothing jumped out completely. It is interesting they have 0:21:37.240 --> 0:21:39.760 three classes of stock, so we're trying to get a 0:21:39.760 --> 0:21:42.159 better understanding of what that means, what that could look like, 0:21:42.240 --> 0:21:44.480 and kind of how that's going to impact the path forward. 0:21:44.720 --> 0:21:47.280 But the typical kind of red flags and wards of caution, 0:21:47.320 --> 0:21:48.880 we're kind of what you would expect. 0:21:49.320 --> 0:21:51.760 On Bloomberg's Bailey Lipschaltz, Thanks so much, Bailey. 0:21:59.280 --> 0:22:01.439 Welcome back to the Technology. I'm Canline Hide in New 0:22:01.520 --> 0:22:02.439 York and. 0:22:02.520 --> 0:22:04.400 I'm Tim Sanoveki and that's San Francisco. 0:22:04.600 --> 0:22:06.480 Checking on these markets. Tim, because we have flipp floping 0:22:06.480 --> 0:22:08.680 between gains and losses the NASAK one hundred currently of 0:22:08.760 --> 0:22:11.240 five dollars tenth of a percent. Now, we got retail 0:22:11.280 --> 0:22:13.600 sales that weren't too ugly, but they weren't great. And 0:22:13.680 --> 0:22:17.200 ultimately we're still trying to work out after Friday's push higher, 0:22:17.320 --> 0:22:20.439 can we sustain any sort of built in risk on 0:22:20.480 --> 0:22:22.800 attitude not in big tech have to say. And video 0:22:22.840 --> 0:22:25.359 is pulling us lower from a points perspective, but so 0:22:25.480 --> 0:22:27.680 too is Tesla. Drill into what's happening on the next board, 0:22:27.680 --> 0:22:31.400 because Tesla is off by forty percent year to date 0:22:31.480 --> 0:22:34.640 thus far, Mizuho slashing its price target for this company, 0:22:34.800 --> 0:22:37.119 once again reaffirming some of the key concerns we got 0:22:37.160 --> 0:22:40.320 across the company. We're worried about China sales, European sales, 0:22:40.440 --> 0:22:43.119 US sales. Were worried about ultimately a long term AI 0:22:43.200 --> 0:22:45.640 vision not hit being timed to the here and now 0:22:45.960 --> 0:22:47.680 of really how many cars are going to be sold 0:22:47.760 --> 0:22:50.080 under Elon Musk. We're looking at BYD and I compare 0:22:50.080 --> 0:22:53.439 and contrast is up two percent. They're saying they're going 0:22:53.480 --> 0:22:57.520 to have EV charging at just five minutes. That'd be 0:22:57.560 --> 0:22:59.200 a big game changer for me and my EV. But 0:22:59.280 --> 0:23:02.960 tim we're seeing once again BID up to date on 0:23:03.000 --> 0:23:07.160 its overall US Depository receipts, wherest has result by well. 0:23:07.119 --> 0:23:10.159 Have you got five minute charging? That's like almost as 0:23:10.200 --> 0:23:12.640 convenient as a gas station. So we'll see if that 0:23:12.720 --> 0:23:16.520 actually comes to fruition. Well to hu NASA astronauts, Butch 0:23:16.560 --> 0:23:19.440 Wilmore and A Sunny Williams will soon return to Earth 0:23:19.480 --> 0:23:22.679 after SpaceX is at Dragon Capsule successfully docked with the 0:23:22.720 --> 0:23:26.280 International Space Station early Sunday morning. The two astronauts spent 0:23:26.320 --> 0:23:29.719 over nine months in space following a series of unexpected 0:23:29.720 --> 0:23:33.240 events and technical issues with their original spacecraft. 0:23:33.480 --> 0:23:35.679 For more, Bloomberg's Bruce Einhorn, it joins US. 0:23:35.720 --> 0:23:38.560 Now, Bruce, this is as much about SpaceX as it 0:23:38.640 --> 0:23:41.680 is about Boeing and it's Starliner capsule. 0:23:42.359 --> 0:23:46.080 What does this mean Boeing moving forward? Sorry to jump 0:23:46.119 --> 0:23:46.440 in there. 0:23:46.480 --> 0:23:51.679 So there are a lot of questions about Boeing's space 0:23:51.720 --> 0:23:56.240 program following what's happened here. So, of course, Butch and 0:23:56.280 --> 0:23:58.919 Sunny they went up on the Starliner capsule. They were 0:23:58.920 --> 0:24:01.720 supposed to be there firmly about a week. They've been 0:24:01.760 --> 0:24:05.800 there for quite a lot longer. The star Liner did 0:24:05.840 --> 0:24:10.560 return to Earth without them, but there were concerns about 0:24:11.160 --> 0:24:14.600 the safety of it, and a lot of questions remain 0:24:14.640 --> 0:24:17.600 about just whether that's a program that has a future. 0:24:18.800 --> 0:24:21.080 Take it back to the success that this shines on 0:24:21.160 --> 0:24:26.000 spacexse Yes, they were slightly delayed, but ultimately they're the 0:24:26.000 --> 0:24:27.880 ones that have to be dependent on. From a US 0:24:27.920 --> 0:24:30.919 government perspective, right now, that's all there is really. 0:24:33.160 --> 0:24:36.280 The US currently has two ways of getting people to 0:24:36.600 --> 0:24:41.960 the space station, SpaceX's Capsule and Starliner, but Starliner is 0:24:42.000 --> 0:24:46.000 not really an option right now, so it's really just SpaceX. 0:24:46.240 --> 0:24:48.040 The only other way to get people to and from 0:24:48.080 --> 0:24:51.040 the space station is a board of Russian Sawyers Rocket. 0:24:52.080 --> 0:24:56.520 But as far as US capabilities, it's just SpaceX. There 0:24:56.600 --> 0:25:01.280 are others that have either already had a cargo flights 0:25:01.359 --> 0:25:04.040 or Planner having cargo flights, but as far as getting 0:25:04.119 --> 0:25:09.399 astronauts to and from its uh, it's SpaceX with essentially 0:25:09.960 --> 0:25:16.200 monopoly now, given that Boeing Starliner is questionable at best. 0:25:16.960 --> 0:25:20.160 Mort Bruce Sinhorn, we thank you much celebration for those 0:25:20.200 --> 0:25:23.280 returning astronauts. I'm sure a little bit later meanwhile, electric 0:25:23.359 --> 0:25:26.880 air taxis could soon been on the horizons of London 0:25:26.920 --> 0:25:30.840 and Manchester Joby Aviation and Virgin Atlantic have announced a 0:25:30.840 --> 0:25:33.840 partnership to launch an air taxi service in the United Kingdom. 0:25:34.000 --> 0:25:37.800 Let's bring in the CEO of Joby, Jobyn Vivet and Jovin. 0:25:38.160 --> 0:25:40.080 How soon am I going to be able to fly 0:25:40.160 --> 0:25:42.800 back to the UK and hop on one of these jobs. 0:25:43.640 --> 0:25:45.280 It's just a few years out, Carolyn. 0:25:45.359 --> 0:25:48.160 We're so excited to be announcing today our partnership with 0:25:48.160 --> 0:25:51.479 with Virgin. Virgin has an incredible dedication to customer service 0:25:51.720 --> 0:25:56.280 that matches with our own. In addition, Delta is one 0:25:56.280 --> 0:26:01.199 of Virgin's largest shareholders and a cudable partner for Jobie, 0:26:01.200 --> 0:26:03.440 and so this is really a match made in heaven 0:26:03.480 --> 0:26:07.000 and we're so thrilled to be announcing it and really 0:26:07.080 --> 0:26:10.119 using it to help catalyze the development of takeoff and 0:26:10.200 --> 0:26:13.680 landing locations both within London and across the UK, which 0:26:13.720 --> 0:26:15.639 is going to bring the service to market, so just 0:26:15.760 --> 0:26:18.520 within the next few years. We're so excited to be 0:26:19.760 --> 0:26:23.600 bringing the opportunity for Virgin customers across the UK to 0:26:23.640 --> 0:26:24.720 fly on our air taxis. 0:26:25.200 --> 0:26:29.399 Would Virgin and in d Delta actually buy some of 0:26:29.440 --> 0:26:31.920 these aircraft? Are they just helping promote them? 0:26:32.880 --> 0:26:36.439 So We're going to have Virgin customers. We're going to 0:26:36.440 --> 0:26:39.560 give them the opportunity to book a Jobe Air taxi 0:26:40.280 --> 0:26:45.760 flight on the Virgin app, on the Virgin website, and 0:26:46.520 --> 0:26:51.679 to be a key demand funnel alongside our partners at 0:26:51.720 --> 0:26:57.760 Delta and Uber in driving to put passengers and fill 0:26:58.080 --> 0:26:58.800 the seats of our. 0:26:58.840 --> 0:27:01.560 Serri It's marketing actually going to be committing to purchase 0:27:01.560 --> 0:27:03.320 one correct. 0:27:03.359 --> 0:27:06.359 It will be job owning and operating the service in 0:27:06.480 --> 0:27:11.520 the UK, much like we do in the UEE, in 0:27:11.600 --> 0:27:14.800 Dubai and in New. 0:27:14.680 --> 0:27:16.760 York and La Jovin. 0:27:16.760 --> 0:27:19.880 What is the main thing holding us back right now 0:27:19.920 --> 0:27:23.320 from flying in these to the airport in the US 0:27:23.440 --> 0:27:25.359 and the UK at this point is it regulators. 0:27:26.840 --> 0:27:31.680 So we're making record progress on certification. This last quarter 0:27:31.760 --> 0:27:35.640 we announced the FA had made record progress on their side. 0:27:36.040 --> 0:27:38.240 Joby is really leaned in. 0:27:38.359 --> 0:27:42.159 And delivering day after day on the component system and 0:27:42.200 --> 0:27:46.800 aircraft level testing. We're testing more components, building more components, 0:27:46.960 --> 0:27:51.119 building FA conforming components, and testing FA conforming components. So 0:27:51.320 --> 0:27:54.560 we're really thrilled with the momentum we're seeing on that side. 0:27:54.880 --> 0:27:58.159 We're seeing incredible lean in from the administration, from the 0:27:58.200 --> 0:28:02.120 DOT from the FA, and we also had uk CAAA 0:28:02.160 --> 0:28:06.440 regulators here in California with US beginning the preparation work 0:28:06.520 --> 0:28:14.000 for the validation of our FA certification. So fabulous progress 0:28:14.080 --> 0:28:16.359 across the board on the certification front. 0:28:17.080 --> 0:28:20.800 How has your relationship with the FA changed with this administration? 0:28:22.840 --> 0:28:26.720 As I said, really seeing a lot of lean in. 0:28:27.800 --> 0:28:34.000 The administration has made air taxi is a very high priority, 0:28:34.520 --> 0:28:39.880 and that also is going to roll into the buildout 0:28:39.960 --> 0:28:44.120 of infrastructure. And we view these vertiports, the takeoff and 0:28:44.200 --> 0:28:47.040 landing locations that you can fly from, as being a 0:28:47.040 --> 0:28:51.440 critical enabled to delivering really spectacular customer experiences. And so 0:28:51.760 --> 0:28:54.920 we're very grateful for the administration and the priority that 0:28:54.960 --> 0:28:58.440 they're putting on building you take off and landing infrastructure. 0:28:59.040 --> 0:29:01.840 And how about at the moment me as a consumer 0:29:01.920 --> 0:29:04.120 might be able to get one in twenty twenty six 0:29:04.240 --> 0:29:07.480 I believe your new timeline is But Defense, how are 0:29:07.480 --> 0:29:11.560 you working with the Defense Department at the moment? Potentially 0:29:12.040 --> 0:29:14.200 I'm seeing EVE tools in that particular area. 0:29:15.960 --> 0:29:19.400 We've had an incredible partnership dating back to twenty sixteen, 0:29:19.840 --> 0:29:24.320 and this is a critical accelerant to all of our work. 0:29:24.840 --> 0:29:30.320 The DD has been a fabulous first mover and that continues. 0:29:30.360 --> 0:29:33.200 We delivered our second aircraft to Edward's Air Force Base 0:29:33.680 --> 0:29:36.600 and so now we're thrilled to have both of those 0:29:36.640 --> 0:29:41.719 aircraft flying, building a really valuable flight test experience, and 0:29:41.920 --> 0:29:46.000 we see that as just the beginning to incredible opportunities 0:29:46.040 --> 0:29:52.000 for vertical tech off landing aircraft. On the defense side, 0:29:53.440 --> 0:29:57.560 the dd gave us provided us with funding which enabled 0:29:58.040 --> 0:30:00.840 the demonstration of our five hundred and sixty one mile 0:30:00.920 --> 0:30:05.120 flight this last year of our hybrid aircraft, and so 0:30:05.520 --> 0:30:10.520 we're just thrilled to be seeing such incredible momentum on 0:30:10.520 --> 0:30:12.640 the dud side for this industry. 0:30:13.840 --> 0:30:17.080 Joeb CEO Joe Ben Bever joining us from Santa Cruz. 0:30:17.120 --> 0:30:20.320 Thanks so much for joining us today. Do appreciate it well. 0:30:20.360 --> 0:30:24.000 Coming up, Zoom's chief product officer, Smita Hashim joins us 0:30:24.000 --> 0:30:26.280 to discuss the company's updated AI agents. 0:30:26.360 --> 0:30:28.160 That's next, This is Bloomberg. 0:30:45.640 --> 0:30:49.920 Let's talk about AI spending because resources are going to 0:30:50.240 --> 0:30:53.520 continue to be increased by hyperscalers. In fact, we're expecting 0:30:53.520 --> 0:30:55.840 them to increase by forty four percent this year, top 0:30:55.840 --> 0:30:58.960 five hundred billion dollars in the early next decade. That's 0:30:58.960 --> 0:31:01.240 according to a new report today from blue Meg Intelligence 0:31:01.320 --> 0:31:03.800 for more, what's actually driving the spending spree that's bring 0:31:03.800 --> 0:31:06.280 in Bluemeg Seth Figeman and look, there was a worry 0:31:06.320 --> 0:31:08.520 about deep Seek. Is some of these much more efficient 0:31:09.080 --> 0:31:13.280 and ultimately cheaper, less powerful models coming to there, and 0:31:13.440 --> 0:31:15.280 we don't seem to need to worry about it. Hyperscalus 0:31:15.320 --> 0:31:17.280 is still going to flood the system for data centers 0:31:17.320 --> 0:31:18.560 for infrastructure. 0:31:18.040 --> 0:31:20.320 Business as usual, if anything, is the opposite issue. Now 0:31:20.320 --> 0:31:22.120 we're seeing deep seek and the attention to it being 0:31:22.200 --> 0:31:24.720 kind of a catalyst here for the tech companies to say, well, 0:31:25.000 --> 0:31:27.920 we want to invest more to develop this technology and 0:31:27.960 --> 0:31:30.040 specifically around inference. So I think a lot of the 0:31:30.080 --> 0:31:32.920 investment today has been around training building the models, but 0:31:33.000 --> 0:31:36.080 now with reasoning systems like deep seeks, there's more investment 0:31:36.120 --> 0:31:38.400 in how they operate after they've been trained. And if 0:31:38.400 --> 0:31:40.480 you're an investor right now, maybe the silver lining is 0:31:40.760 --> 0:31:43.000 more of that spending shifts too after the model has 0:31:43.040 --> 0:31:44.080 been developed and deployed. 0:31:45.320 --> 0:31:49.280 But Seth, won't reasoning become more efficient as well, We'll 0:31:49.320 --> 0:31:51.800 be able to do more with less, you. 0:31:51.760 --> 0:31:52.400 Know, one way, hope. 0:31:52.400 --> 0:31:55.280 Although we're trying to build more sophisticated reasoning models. So 0:31:55.600 --> 0:31:57.440 TVD on that front. But I think the idea is 0:31:57.480 --> 0:32:00.120 as this gets developed at scale, deployed not to some 0:32:00.120 --> 0:32:02.240 of the US book abroad, you're going to see the 0:32:02.280 --> 0:32:04.920 amount of money that goes into inference to support reasoning 0:32:05.240 --> 0:32:07.440 really shoot up in the coming decade and really make 0:32:07.520 --> 0:32:09.120 up a much larger percentage of the whole. 0:32:09.600 --> 0:32:11.680 So let's just go back to the anxiety that that 0:32:12.160 --> 0:32:15.400 reporting of Microsoft pulling back on leases of data centers 0:32:15.440 --> 0:32:18.000 sent shot ways through the market off the week, of course, 0:32:18.040 --> 0:32:20.680 got the efficiencies of deep seek. That's not going on. 0:32:20.760 --> 0:32:23.760 We're still seeing an ever scaling amount of money going 0:32:23.800 --> 0:32:24.520 into infrastructure. 0:32:24.560 --> 0:32:25.880 Yeah, I mean, at least the cording of the Bloomberg 0:32:25.880 --> 0:32:28.600 Intelligence report, the pace of growth is actually greater than 0:32:28.640 --> 0:32:31.240 they have previously expected before Deep Seek and the shift 0:32:31.240 --> 0:32:34.720 towards reasoning models. So again business as usual to some extent, 0:32:34.800 --> 0:32:37.040 more investment in data center is more in chips, but 0:32:37.160 --> 0:32:39.000 shifting a little bit of the focus to inference. 0:32:40.040 --> 0:32:42.719 All right, Bloomberg Seth Figureman, Seth, good to see you, 0:32:42.760 --> 0:32:43.400 Thanks so much. 0:32:43.760 --> 0:32:43.960 Well. 0:32:43.960 --> 0:32:47.720 Today Zoom announced new features and skills for its AI companion. 0:32:47.960 --> 0:32:51.040 The company is leaning into new products as its video 0:32:51.080 --> 0:32:54.560 business matures. Joining us now is Smid ah Hashim, Zoom's 0:32:54.680 --> 0:32:58.320 chief product officer. Smida good to see you. I do 0:32:58.440 --> 0:33:00.880 wonder and we'll get to the announce in just a minute. 0:33:01.000 --> 0:33:03.600 But how would you characterize how subscribers right now, how 0:33:03.640 --> 0:33:07.040 customers are actually using the AI features of Zoom beyond 0:33:07.040 --> 0:33:08.280 its core video products. 0:33:08.880 --> 0:33:11.440 Yeah, absolutely, so, I said great too, great to be here, 0:33:11.520 --> 0:33:14.719 thank you for having me. So we continue. We are 0:33:14.760 --> 0:33:20.240 seeing accelerated growth in customers using Zoom Ai Companion, which 0:33:20.240 --> 0:33:24.760 is a generative AI assistant. Last quarter, the quarter over 0:33:24.920 --> 0:33:28.360 quarter actives group by sixty eight percent, So that is 0:33:28.400 --> 0:33:30.960 a huge increase in one quarter. So we continue to 0:33:31.000 --> 0:33:34.240 see customers get more comfortable and using generative AI a 0:33:34.240 --> 0:33:34.680 lot more. 0:33:35.920 --> 0:33:39.680 When can you tell investors that you'll be able to 0:33:39.760 --> 0:33:42.600 charge more for these products and grow that top line 0:33:42.600 --> 0:33:45.840 as a result of the innovations that you're making when 0:33:45.840 --> 0:33:46.960 it comes to AI. 0:33:48.480 --> 0:33:52.760 So, Zoom Ai Companion is so we include Zoom may 0:33:52.760 --> 0:33:55.320 I Companion at no additional cost in our product, and 0:33:55.360 --> 0:33:58.280 we continue to expand it. So last year we expanded 0:33:58.280 --> 0:34:02.160 it to work across Zoom workplace. Talked about expanded product portfolio, 0:34:02.360 --> 0:34:09.759 so across meetings, chats, Phone Wideboard, but also Microsoft Outlook, Calendar, Gmail, 0:34:10.480 --> 0:34:13.880 Office Docs. So we expanded its footprint quite a lot, 0:34:14.320 --> 0:34:17.440 and we continue to see the growth which I talked about. 0:34:17.560 --> 0:34:20.840 We also announced a custom AI Companion add on, so 0:34:20.960 --> 0:34:23.440 that is a paid add on, and with the Custom 0:34:23.640 --> 0:34:26.719 AI Companion paid add on, which is coming out next month, 0:34:27.160 --> 0:34:30.960 customers will be able to use Zoo AI Companion in 0:34:31.040 --> 0:34:34.360 ways that's really unique to them, so with custom vocabulary, 0:34:35.000 --> 0:34:38.960 connected across different applications, So that is something which we 0:34:39.000 --> 0:34:42.319 would be charging for, and we also charge for I 0:34:42.320 --> 0:34:46.960 mean our departmental our products like contact Center, we have 0:34:47.120 --> 0:34:50.200 advanced AI in them like AI Expert Assist and those 0:34:50.239 --> 0:34:51.360 are also paid product. 0:34:51.760 --> 0:34:52.600 But really the. 0:34:52.680 --> 0:34:55.239 Crux for us is we want customers and users to 0:34:55.360 --> 0:34:59.920 really benefit from AI capabilities. And then on top of that, 0:35:00.239 --> 0:35:02.319 you know, as they start using them, we want to 0:35:02.320 --> 0:35:04.480 give them more ways to customerze and expand, which is 0:35:04.520 --> 0:35:06.000 where the monetization is. 0:35:06.280 --> 0:35:10.520 And it's interesting how you're talking about working alongside Microsoft Outlook, 0:35:10.560 --> 0:35:14.480 working alongside Google's Gmail. You've worked at both those companies, 0:35:14.719 --> 0:35:18.600 helping of course with Google products with Microsoft teams. Just 0:35:18.800 --> 0:35:21.600 how competitive is it out there, because that's what investors 0:35:21.640 --> 0:35:23.520 a worry about, that you're going to lose out to 0:35:23.560 --> 0:35:24.600 a teams for example. 0:35:25.640 --> 0:35:29.319 Yeah, so I do think customers we see a lot 0:35:29.360 --> 0:35:32.080 of customer interest and love for Zoom. When we talk 0:35:32.080 --> 0:35:34.040 about customers, why do you love Zoom? I mean a 0:35:34.040 --> 0:35:36.400 lot of it is it just works. It's really a 0:35:36.400 --> 0:35:40.000 great experience. We also work hard to give customers choices, 0:35:40.280 --> 0:35:42.640 so we are an open platform, and customers like that. 0:35:43.040 --> 0:35:45.040 They actually like a lot of choice, and we give 0:35:45.080 --> 0:35:48.840 them great value along with these experiences. So for example, 0:35:48.880 --> 0:35:51.399 including Zoom ai companion as part of all of our 0:35:51.400 --> 0:35:54.360 paid licenses. So all of this is what's coming together 0:35:54.719 --> 0:35:58.200 to keep our customer engagement really high and have the 0:35:58.320 --> 0:36:02.360 incredible love that I see for Zoom PROMA customers, which honestly, 0:36:02.400 --> 0:36:04.560 I have not seen anywhere else in my long career. 0:36:05.680 --> 0:36:08.680 You just talked about some of the growth quarter on quarter, 0:36:08.760 --> 0:36:12.520 what was it sixty eight percent increase? But what is 0:36:12.680 --> 0:36:14.879 the amount that people are using it? You might see 0:36:14.920 --> 0:36:17.839 adoption increase, but how addicted to it are they? 0:36:18.880 --> 0:36:22.200 Yeah? So you know, I mean the growth numbers to 0:36:22.360 --> 0:36:24.640 tell the story that if people are using it and 0:36:24.719 --> 0:36:27.080 abandoning it, then obviously we are not going to get 0:36:27.120 --> 0:36:30.320 the growth that we are seeing. So customers continue to 0:36:30.440 --> 0:36:32.279 use it, and they continue to use more and more 0:36:32.320 --> 0:36:35.120 of it, and some of the data what we are 0:36:35.160 --> 0:36:38.560 hearing about is how much customers are using it all 0:36:38.600 --> 0:36:41.680 the time in order to streamline their work. So personally, 0:36:41.719 --> 0:36:46.000 for me, I'm using zoom ai Companion to prepare for meetings. 0:36:46.200 --> 0:36:50.000 During the meeting even to understand different viewpoints. I'm using 0:36:50.080 --> 0:36:53.160 it to summarize Zoom team chats, understand my action items, 0:36:53.400 --> 0:36:55.880 and one cool use case I have is I'm beginning 0:36:55.880 --> 0:36:58.560 to use it end of the day to really reflect 0:36:58.600 --> 0:37:00.640 on my day. So when we are talking to customers, 0:37:00.719 --> 0:37:03.359 we're seeing a breadth of use cases now that zoom 0:37:03.400 --> 0:37:06.719 ai Companion is across zoom workplace and it's across these 0:37:06.760 --> 0:37:10.240 connected applications, and that is where the engagement is coming from. 0:37:10.560 --> 0:37:12.880 But in that spirit, I also want to talk about 0:37:12.880 --> 0:37:15.640 our next set of announcements which we made, which is 0:37:15.680 --> 0:37:18.799 we really talked about how the big changes Zoom ai 0:37:18.960 --> 0:37:23.359 Companion is becoming edgentic and agentic really means that it 0:37:23.400 --> 0:37:26.440 can behave more and more like you and I do. 0:37:26.920 --> 0:37:30.840 So we have added capabilities like reasoning, It can reason 0:37:31.000 --> 0:37:34.160 over a large surface area memory, so it can remember 0:37:34.200 --> 0:37:38.279 what happened. It can orchestrate across all these different products 0:37:38.320 --> 0:37:41.520 and more skills and agents, and then it can also 0:37:41.640 --> 0:37:44.239 take actions. So not only can it reason, it can 0:37:44.320 --> 0:37:47.919 complete actions. So with some of those changes, a Zoom 0:37:47.960 --> 0:37:51.239 work pace AI companion is not only able to help 0:37:51.280 --> 0:37:54.240 you understand what it's going on, but also complete things 0:37:54.239 --> 0:37:59.000 for you like complex calendar scheduling, writing documents in ways 0:37:59.000 --> 0:38:03.320 that really affect those even send messages on your behalf. 0:38:03.600 --> 0:38:06.560 So these agentic skills are those which are going to 0:38:06.640 --> 0:38:09.879 further deep in the engagement and help users save more 0:38:09.920 --> 0:38:12.760 time so they can be more effective, whether it's connecting 0:38:12.800 --> 0:38:14.440 with each other or being more productive. 0:38:15.239 --> 0:38:18.480 Are these agentic schools built organically by Zoom or are 0:38:18.480 --> 0:38:22.520 you relying on a third party perhaps LLM or other 0:38:22.600 --> 0:38:26.800 AI agent to actually power the Zoom skills. 0:38:27.440 --> 0:38:31.400 Yeah, so the agentic skills themselves are the So we 0:38:32.040 --> 0:38:34.000 do a lot of our core AI stock, but in 0:38:34.080 --> 0:38:37.520 terms stack, but in terms of the agentic skills or 0:38:37.560 --> 0:38:40.480 the models, the models that we are using. From day one, 0:38:40.560 --> 0:38:43.399 we have had this federated approach which means we work 0:38:43.440 --> 0:38:46.839 across a variety of models. We work across open AI 0:38:47.320 --> 0:38:50.160 and tropic. We use open source models, we have Zoom's 0:38:50.200 --> 0:38:54.760 own models, and recently we have also started investing where 0:38:54.840 --> 0:38:58.240 we have Zoom small language models. So these are smaller, 0:38:58.360 --> 0:39:01.680 more specialized models, and we have seen these models really 0:39:01.760 --> 0:39:06.000 perform at the top of the public leaderboards and benchmarks. 0:39:06.120 --> 0:39:08.200 So we use a variety of these models using the 0:39:08.239 --> 0:39:11.520 federated approach her party as well as ours in order 0:39:11.520 --> 0:39:13.719 to give users these great experiences. 0:39:14.040 --> 0:39:16.200 Smita Hashim, thanks for joining us today. 0:39:16.320 --> 0:39:17.640 Same chief product officer. 0:39:26.640 --> 0:39:29.400 Amazon's Alexa division is set to introduce a new premium 0:39:29.400 --> 0:39:33.160 tier of gadgets alongside a revamped AI operating system called 0:39:33.200 --> 0:39:36.160 Alexa Plus. This in an effort to revitalize the brand 0:39:36.440 --> 0:39:39.239 for more Bloomberg's Mark German, it joins us Mark. How 0:39:39.280 --> 0:39:42.080 much of a departure is this for Amazon's hardware strategy. 0:39:42.120 --> 0:39:44.279 Apart from the fire phone more than ten years ago, 0:39:44.760 --> 0:39:48.920 Amazon has really created gadgets and hardware that is cheap 0:39:48.960 --> 0:39:51.000 and allows you to buy more stuff from Amazon. 0:39:51.560 --> 0:39:54.200 Yeah, that's right, So todate, the focus has not been 0:39:54.239 --> 0:39:57.000 on making money on the hardware. It's not been on 0:39:57.080 --> 0:39:59.719 people really loving the hardware. It's been a focus on 0:39:59.719 --> 0:40:03.239 get people to use Alexa, getting people to buy things 0:40:03.280 --> 0:40:06.560 through Amazon Prime, getting people to subscribe to Prime in 0:40:06.600 --> 0:40:09.279 their video services and their music services and the like. 0:40:09.320 --> 0:40:12.480 Obviously the Fire TV sticks, the echos, the Echo shows 0:40:12.480 --> 0:40:15.399 and what have you. Now it's about both. They want 0:40:15.400 --> 0:40:17.640 to bring Alexa Plus to more people. They want to 0:40:17.640 --> 0:40:19.920 get people hooked on that Prime subscription one hundred and 0:40:19.960 --> 0:40:22.200 forty dollars a year, but they also want to make 0:40:22.280 --> 0:40:24.880 more money on the hardware, have more premium hardware, and 0:40:24.920 --> 0:40:27.719 really make products that compete with the upper echelon of 0:40:27.719 --> 0:40:30.160 the consumer tech industry. And so panos Pine was brought 0:40:30.200 --> 0:40:32.000 in about a year and a half. He was post 0:40:32.080 --> 0:40:34.640 for Microsoft or he was the chief product officer, and 0:40:34.640 --> 0:40:37.760 at Microsoft he was known for high end materials, using 0:40:37.960 --> 0:40:40.640 new types of materials like what you would see on 0:40:40.719 --> 0:40:43.840 maybe car seats or in a car as laptop padding 0:40:44.000 --> 0:40:48.960 on the palm rests, using lots of aluminum, high end hinges, 0:40:49.120 --> 0:40:53.000 just very high quality materials and product development processes, basically 0:40:53.080 --> 0:40:55.040 the type of stuff you were seeing from Apple for 0:40:55.080 --> 0:40:58.600 decades at this point, and applying that to Microsoft's products. 0:40:58.680 --> 0:41:01.600 He's going to do the same thing at Amazon, and 0:41:01.680 --> 0:41:03.719 he's going to start rolling out those new higher end 0:41:03.719 --> 0:41:06.080 products beginning at the tail end of this year. 0:41:06.560 --> 0:41:09.560 And talking of that premium focus that Apple has, you 0:41:09.640 --> 0:41:12.160 had a great power on out over the weekend talking 0:41:12.200 --> 0:41:15.160 about the slimmer smartphone that's likely to come when we 0:41:15.200 --> 0:41:18.319 get iPhone seventeen and just how this pushes them ever 0:41:18.440 --> 0:41:21.560 more further forward in terms of charging in particular. 0:41:22.920 --> 0:41:24.080 Yeah, this is really cool. 0:41:24.120 --> 0:41:26.920 Actually, So this year they're coming out with what I've 0:41:26.960 --> 0:41:30.000 been calling the iPhone seventeen Air or the iPhone Air. 0:41:30.480 --> 0:41:32.840 Why well, let's look at the MacBook strategy. They have 0:41:32.880 --> 0:41:36.160 the higher end, thicker MacBooks with all the specifications. Then 0:41:36.200 --> 0:41:38.160 they have the lower end MacBook Air, and that's a 0:41:38.200 --> 0:41:41.600 focus on thin and light, using next generation technologies for 0:41:41.840 --> 0:41:45.000 thinking futuristic. So now they saw the success with the 0:41:45.040 --> 0:41:47.279 mac they want to do the same thing to the iPhone. 0:41:47.400 --> 0:41:49.640 So this is going to be a slim down model. 0:41:49.719 --> 0:41:53.359 It's a fifth thinner than the other iPhones on the market, 0:41:53.440 --> 0:41:55.640 and when you're getting down to twenty percent thinner, that's 0:41:55.719 --> 0:41:58.719 really thin because the iPhones are pretty darn thin already, right, 0:41:59.160 --> 0:42:02.320 And the way they've created a very sophisticated display and 0:42:02.440 --> 0:42:05.799 battery technologies to get the power efficiency up using a 0:42:05.800 --> 0:42:08.520 new modem. It's going to have a display around six 0:42:08.560 --> 0:42:12.040 point six inches, so a little bit bigger than the 0:42:12.120 --> 0:42:14.360 smaller pro, so it's an in between er size. I 0:42:14.440 --> 0:42:16.680 think this phone's going to be really successful, really hot. 0:42:17.120 --> 0:42:19.600 They wanted to make it even more futuristic by removing 0:42:19.600 --> 0:42:22.000 the charging port from it, but they were worried about 0:42:22.080 --> 0:42:25.040 EU regulators, so that charging port will be there for 0:42:25.080 --> 0:42:28.000 this generation. But my anticipation is that this is one 0:42:28.000 --> 0:42:33.480 to foreshadow even thinner, even bolder iPhones with bigger design changes, foldables, 0:42:33.480 --> 0:42:35.799 and certainly models down the road without charging. 0:42:35.480 --> 0:42:38.440 Portsmis margam and always foreshadowing the future. 0:42:38.480 --> 0:42:39.440 We thank you now. 0:42:39.440 --> 0:42:41.640 That does it for this edition of plumag Technology. Do 0:42:41.680 --> 0:42:43.520 not forget to check out our podcast. You can find 0:42:43.560 --> 0:42:45.840 it on the terminal as well as online on Apple, Spotify, 0:42:45.880 --> 0:42:48.360 and iHeart. From New York and San Francisco, this is 0:42:48.400 --> 0:42:52.600 Plumbag Technology.