WEBVTT - TikTok Ban and Softbank's 'Super' AI Plans 0:00:02.440 --> 0:00:10.160 Bloomberg Audio Studios, podcasts, radio news from Mahard where Innovation, 0:00:10.440 --> 0:00:11.400 money and power. 0:00:11.520 --> 0:00:13.880 Collie in Silicon Vallet NBN. 0:00:14.240 --> 0:00:18.280 This is Bloomberg Technology with Caroline Hyde and Ed Loudlove. 0:00:32.600 --> 0:00:35.640 I Meed Ludlow in San Francisco. Caroline hides off. This 0:00:36.040 --> 0:00:37.240 is Bloomberg Technology. 0:00:37.240 --> 0:00:39.800 Coming up. We'll bring you latest on the TikTok ban 0:00:39.920 --> 0:00:40.239 as the. 0:00:40.200 --> 0:00:45.120 Company argues the US disregarded its national security plans. Plus 0:00:45.159 --> 0:00:49.360 Masseoshi's Sun announces his vision for an era of artificial 0:00:49.520 --> 0:00:51.000 super intelligence. 0:00:51.000 --> 0:00:52.160 Will bring you the details. 0:00:52.400 --> 0:00:57.280 And cardialer chaos continues amid a debilitating cyber attack that's 0:00:57.360 --> 0:01:01.000 upending the one point two trillion dollar market. It's full 0:01:01.040 --> 0:01:04.560 coverage coming up. Happy Friday to those of you around 0:01:04.560 --> 0:01:06.720 the world. This is what markets look like over the 0:01:06.760 --> 0:01:09.280 course of the week. But remember we had a market 0:01:09.319 --> 0:01:12.560 holiday here in the United States on Wednesday. This Friday, 0:01:12.880 --> 0:01:16.520 the market is facing five point five trillion dollars of 0:01:16.560 --> 0:01:20.240 derivatives that are due to expire, the so called triple witching. 0:01:20.319 --> 0:01:23.720 That's having an impact on markets. But right now there's 0:01:23.760 --> 0:01:27.920 this conversation around valuations, particularly in some of the megacaps 0:01:28.400 --> 0:01:31.120 that have seen a really AI driven rally. Later in 0:01:31.160 --> 0:01:33.040 the show, we're going to go over some charts and 0:01:33.080 --> 0:01:36.119 have a brief conversation about one name in particular, Apple. 0:01:36.400 --> 0:01:39.280 But i'd note this Friday that Nvidia is down a 0:01:39.319 --> 0:01:42.959 couple of percentage points coming off what's been an astonishing 0:01:43.040 --> 0:01:45.240 rally in that stock, and that is having a factor 0:01:45.240 --> 0:01:45.680 in the markets. 0:01:45.680 --> 0:01:47.520 So we're also going to talk about Bitcoin. 0:01:47.319 --> 0:01:50.080 That it's near a one month low right now, there's 0:01:50.120 --> 0:01:51.920 a lot going in the market. Will go in house 0:01:51.960 --> 0:01:55.160 to Bloomberg Intelligence to ask some key questions about what's 0:01:55.240 --> 0:01:58.680 going on with bitcoin. Let's get to our top technology story. 0:01:58.720 --> 0:02:02.560 TikTok and It's Andy's parent Byte Dancer, arguing the US 0:02:02.640 --> 0:02:05.240 government could have put more options on the table and 0:02:05.280 --> 0:02:09.000 taken less restrictive action than simply banning the Act to 0:02:09.080 --> 0:02:13.359 address national security concerns. In a court finding Thursday, TikTok 0:02:13.400 --> 0:02:18.200 said that Congress disregarded a ninety page national security agreement 0:02:18.360 --> 0:02:20.840 that was made with the federal government, in which TikTok 0:02:20.960 --> 0:02:24.400 argues it offered multi layered safeguards. Let's get out to 0:02:24.480 --> 0:02:27.560 DC and Bloomberg's Mike Shepard, might you lead the intersection 0:02:28.040 --> 0:02:30.880 of tech and politics for US. Basically, what they're saying is, 0:02:31.160 --> 0:02:35.240 we offered lots of options. We offered you technological solutions 0:02:35.240 --> 0:02:38.800 that we think would have safeguarded US user data, and 0:02:38.840 --> 0:02:42.320 the only option Congress gave in return was an outright ban. 0:02:43.720 --> 0:02:46.680 Well, that's right ered, and let's step back for a minute. 0:02:46.720 --> 0:02:51.840 This TikTok saga has just become such a focus of 0:02:51.880 --> 0:02:54.960 attention here in Washington because of all it'd symbolized. 0:02:55.160 --> 0:02:56.680 It's not just about the app. 0:02:57.000 --> 0:03:00.760 It's also about this geopolitical tension between the world's two 0:03:00.840 --> 0:03:04.560 largest economies and their visions for how governance should be 0:03:04.680 --> 0:03:07.720 should be handled, and the concern here in Washington that 0:03:08.720 --> 0:03:12.760 the Chinese government ultimately could have access the US user 0:03:12.919 --> 0:03:17.320 data through TikTok's Chinese parent company, now TikTok and bike Dance. 0:03:17.440 --> 0:03:18.880 The Chinese parents. 0:03:18.720 --> 0:03:22.200 Have claimed that they're set up this so called Project Texas, 0:03:22.680 --> 0:03:25.520 where they invested almost two billion dollars in work with 0:03:25.600 --> 0:03:27.960 Oracle to try to set up some sort of a 0:03:28.000 --> 0:03:32.120 shield and firewall that would keep US data secure and 0:03:32.200 --> 0:03:37.400 away from any purported buying eyes in Beijing. That was 0:03:37.520 --> 0:03:40.800 not enough to satisfy US lawmakers. They were aware of 0:03:40.800 --> 0:03:43.800 the proposal, they were aware of the project, and Senator 0:03:43.880 --> 0:03:48.040 Mark Warner, who heads the Intelligence Committee, expressed skepticism from 0:03:48.080 --> 0:03:51.040 the start that that would be an adequate safeguard to 0:03:51.080 --> 0:03:52.800 satisfy lawmakers' concerns. 0:03:54.600 --> 0:03:57.880 It's difficult for users of TikTok, and in this country 0:03:57.920 --> 0:04:01.120 there are one hundred and seventy million or so of them, 0:04:01.520 --> 0:04:03.280 and for the public to kind of get a sense 0:04:03.320 --> 0:04:06.560 of where we're at. So, after this legislation made its 0:04:06.600 --> 0:04:10.240 way through Congress, legal challenges were bought by TikTok, Byte 0:04:10.280 --> 0:04:14.280 Dance's parent company, but also the users themselves. When the 0:04:14.320 --> 0:04:16.839 court filing hit last night, the DOJ came out with 0:04:16.920 --> 0:04:21.400 statement and said, you know, the legislation accounts for a 0:04:21.440 --> 0:04:24.000 lot of the issues we were worried about. A long 0:04:24.080 --> 0:04:27.159 preamble to ask Mike, where do we stand? What happens next? 0:04:28.080 --> 0:04:31.080 Well, right now we are in that kind of tennis 0:04:31.120 --> 0:04:35.800 match of court five. So it was TikTok's volley yesterday 0:04:36.080 --> 0:04:39.479 and now we're waiting for the Justice Department to return 0:04:39.520 --> 0:04:42.839 the serve the face a July twenty sixth deadline to 0:04:42.920 --> 0:04:46.520 respond with their own brief papers, and then in early 0:04:46.560 --> 0:04:50.479 September we're expecting the Appeals Court here in Washington to 0:04:50.640 --> 0:04:53.840 hear this case, and the company is asking for a 0:04:53.960 --> 0:04:58.320 ruling by December sixteenth or so so that, if need be, 0:04:58.600 --> 0:05:00.800 it can go straight to the US Preme Court for 0:05:00.839 --> 0:05:04.360 an emergency injunction if it doesn't get relief here at 0:05:04.400 --> 0:05:07.320 the appeals court level. So it's moving fast, but it's 0:05:07.880 --> 0:05:10.599 so much of it is happening in court, and it 0:05:10.640 --> 0:05:12.960 will really come down to a handful of judges to 0:05:13.080 --> 0:05:18.599 decide whether the national security concerns raised by Congress override 0:05:18.960 --> 0:05:23.359 and overwhelm any free speech concerns and considerations that the 0:05:23.400 --> 0:05:26.320 company is raising as part of its bids o returnal law. 0:05:27.440 --> 0:05:31.720 Bloomberg's Mike Shepherd, Washington, DC, Thank you so much. Let's 0:05:31.720 --> 0:05:33.520 get to another story in the realm with social media, 0:05:33.640 --> 0:05:36.440 New York has become the first state in the nation 0:05:36.960 --> 0:05:40.960 to place curbs on how social media platforms present content 0:05:41.240 --> 0:05:45.640 to miners. Under a measure signed by Governor Kathe Hokel yesterday, 0:05:45.640 --> 0:05:49.320 platforms such as TikTok and Instagram will now need parental 0:05:49.360 --> 0:05:54.839 consent to use algorithmic feeds or notify underage users between 0:05:54.839 --> 0:05:57.800 midnight and six am. According to the language and the bill, 0:05:57.839 --> 0:06:00.479 I want to break that down with the Chamber Progress 0:06:00.560 --> 0:06:02.279 CEE Adam Canvacuvates. 0:06:02.560 --> 0:06:03.760 I was interested, Adam. 0:06:03.520 --> 0:06:06.760 To read through not just the content of the bill 0:06:06.960 --> 0:06:10.400 and what it will provide for, but also the idea 0:06:10.400 --> 0:06:11.800 that New York did this first. 0:06:11.920 --> 0:06:12.800 What do you make of it? 0:06:14.279 --> 0:06:15.680 Well, what I make of it is we know there's 0:06:15.760 --> 0:06:19.480 concern among parents about kids and teens in social media, 0:06:19.520 --> 0:06:23.640 and I think that's understandable. Unfortunately, I think that in 0:06:23.680 --> 0:06:26.480 this case they went after the wrong target, which was algorithms. 0:06:26.520 --> 0:06:29.479 I think they got into their head and a variety 0:06:29.480 --> 0:06:32.720 of critics have focused on algorithmic feeds as being kind 0:06:32.760 --> 0:06:35.919 of a problem here. And so the bill, as you said, 0:06:36.240 --> 0:06:40.480 bans algorithmic feeds and services like TikTok and Instagram YouTube 0:06:40.520 --> 0:06:43.919 by default for teenagers unless their parents opt them into 0:06:43.920 --> 0:06:47.600 those algorithmic feeds. And just the problem with this is 0:06:47.640 --> 0:06:51.200 that I think that chronological feeds are actually going to 0:06:51.240 --> 0:06:53.000 be a worse experience for teenagers. 0:06:53.000 --> 0:06:53.960 They're more likely to. 0:06:53.880 --> 0:06:58.240 Surface, you know, the last post that might be spammy, clickbait, 0:06:58.560 --> 0:07:03.919 hate harassment, and algorithm algorithms are actually providing a pretty 0:07:03.920 --> 0:07:06.800 important role and making these feeds better for teenagers. Usually 0:07:06.800 --> 0:07:10.160 they're allowing them to curate their experiences. And Common Sense Media, 0:07:10.160 --> 0:07:12.040 which actually ironically is the support of this will, actually 0:07:12.040 --> 0:07:13.840 had a survey of teenagers about two weeks ago where 0:07:13.840 --> 0:07:16.640 they said, team, most teenagers are liking you know, or 0:07:16.760 --> 0:07:20.520 actually use curation in their feeds, and unfortunately this bill 0:07:20.600 --> 0:07:23.880 kind of we'll do away with that completely by default. 0:07:23.960 --> 0:07:26.920 So unfortunately it's well intentioned, but it goes after the 0:07:27.000 --> 0:07:29.560 wrong target in my view, and I think is likely 0:07:29.600 --> 0:07:31.040 to make feeds worse for teens. 0:07:32.280 --> 0:07:35.600 And the Chamber of Progress of which you lead is 0:07:35.600 --> 0:07:40.720 basically an industry group, but your work is to look 0:07:40.720 --> 0:07:44.080 at public policy and make sure that it is impactful 0:07:44.120 --> 0:07:47.840 to society in a fair way. So you think that 0:07:48.040 --> 0:07:50.360 they went about this in the wrong way, how would 0:07:50.440 --> 0:07:51.560 you have done it differently? 0:07:53.240 --> 0:07:55.680 Well, you know, I think what we're starting to see is, 0:07:55.760 --> 0:07:59.320 for example, this week in California the governor, Governor Newsom 0:07:59.400 --> 0:08:02.520 talked about, well, maybe schools should have a blanket rule 0:08:02.600 --> 0:08:03.840 against phones in school. 0:08:04.280 --> 0:08:05.680 They're proving to be a distraction. 0:08:06.360 --> 0:08:08.440 I think there's pros and cons of a policy of 0:08:08.600 --> 0:08:11.520 like that, but one thing about those policies is they're 0:08:11.560 --> 0:08:15.840 not getting involved in regulating platforms at the speech level. 0:08:16.440 --> 0:08:19.000 One of the things we've seen, and again New York's. 0:08:18.760 --> 0:08:21.560 Not the first state to do a bill related to 0:08:22.200 --> 0:08:26.560 social media and kind of content. They've gone about a 0:08:26.600 --> 0:08:28.360 little bit differently. But one of the problems that all 0:08:28.440 --> 0:08:30.120 these laws have faced, and now this has happened in 0:08:30.120 --> 0:08:35.000 California and Arkansas, in Ohio, every single time state legislators say, well, no, 0:08:35.040 --> 0:08:37.160 we're not We're not regulating the content of these services. 0:08:37.200 --> 0:08:40.360 We're regulating their design, right, and that's different that therefore 0:08:40.360 --> 0:08:42.560 it doesn't run a foul of the First Amendment. Every 0:08:42.600 --> 0:08:45.600 single time so far, courts have said, no, that's actually 0:08:45.640 --> 0:08:48.640 not true. You are regulating the platform speech, and I 0:08:48.679 --> 0:08:50.199 expect the same will be true here. 0:08:50.640 --> 0:08:52.600 So I think we're in that we have. 0:08:52.520 --> 0:08:54.240 The kind of the dynamic where this bill feels really 0:08:54.240 --> 0:08:56.400 great to Governor Hochle and policymakers have pushed it, but 0:08:56.480 --> 0:08:58.880 it will it might inevitably be struck down in court, 0:08:58.880 --> 0:09:00.679 and then I think, you know, be right back where 0:09:00.679 --> 0:09:03.560 we started from. So unfortunately, I don't see a lot 0:09:03.559 --> 0:09:05.480 of legislators saying, look, how can we approach us in 0:09:05.520 --> 0:09:09.520 a way that is really like constitution proof, legally sound 0:09:09.559 --> 0:09:11.520 they've asserted that it is, but I don't think this 0:09:11.559 --> 0:09:12.199 will be in the. 0:09:12.240 --> 0:09:13.839 End, Adam. 0:09:13.880 --> 0:09:16.280 I want to go back to the latest on TikTok 0:09:16.400 --> 0:09:19.040 that our editor Mike Shephard was giving us from DC 0:09:19.320 --> 0:09:20.120 a few minutes ago. 0:09:20.440 --> 0:09:22.440 This is not a new conversation for you or I. 0:09:23.120 --> 0:09:25.280 The idea that you know. 0:09:25.240 --> 0:09:29.719 TikTok and its users have frustrations that they feel they 0:09:29.760 --> 0:09:34.720 put forward technological and policy solutions that would have allowed 0:09:34.800 --> 0:09:39.120 TikTok to continue to operate in this country, and they 0:09:39.120 --> 0:09:41.440 feel the only option that they were given by Congress 0:09:41.520 --> 0:09:43.280 was a ban. What did you make of them court 0:09:43.320 --> 0:09:45.000 filing which hit last night. 0:09:46.640 --> 0:09:48.840 Well, I think what TikTok is trying to do in 0:09:48.920 --> 0:09:52.719 their court filing is they're trying to address what's called 0:09:52.760 --> 0:09:55.440 sort of the least restrictive means, right, which to say that, 0:09:55.679 --> 0:09:59.560 if you're concerned about TikTok and Chinese connections, for example, 0:10:00.320 --> 0:10:02.240 is there some other way the government could have gone 0:10:02.240 --> 0:10:04.640 about addressing that concern short of pass in the law 0:10:04.760 --> 0:10:07.960 that did. And that's what their Project Texas is all about. 0:10:08.000 --> 0:10:11.480 And that is legally relevant at this stage because that 0:10:11.640 --> 0:10:14.400 is an actual principle under the law, and so I 0:10:14.440 --> 0:10:16.720 completely understand what TikTok was doing. I have a concern 0:10:16.760 --> 0:10:20.360 about TikTok and Chinese control, but I understand that, and 0:10:20.480 --> 0:10:23.080 ultimately I actually think it's kind of a jump ball. 0:10:23.280 --> 0:10:25.840 I think whether or not TikTok succeeds in this in 0:10:25.840 --> 0:10:29.160 its legal challenge is truly a legal jump ball, and 0:10:29.200 --> 0:10:31.280 so I don't it's completely understandable to me that they 0:10:31.280 --> 0:10:32.160 would make that argument. 0:10:32.800 --> 0:10:35.640 But what is the Chamber of Progress is position on 0:10:35.679 --> 0:10:38.560 whether TikTok should be able to operate in the United States. 0:10:39.600 --> 0:10:41.600 We haven't taken an organizational position on it. 0:10:41.840 --> 0:10:44.040 I think that I share a lot of concern that, like, 0:10:44.200 --> 0:10:48.680 this is an really unprecedented situation where an app that 0:10:48.800 --> 0:10:52.840 is so popular, you know, frankly has this nexus and 0:10:52.920 --> 0:10:57.320 really is obligated to advance the Chinese government's interests. That's 0:10:57.400 --> 0:10:59.720 always been a concern for me, more than that data concern, 0:10:59.800 --> 0:11:01.760 more just kind of like look at the idea that like, 0:11:01.760 --> 0:11:04.360 look after Russian and raided Ukraine, we look back and said, 0:11:04.360 --> 0:11:07.360 why do we allow our tea Russia's propaganda network on 0:11:07.440 --> 0:11:08.760 our cable systems? 0:11:09.000 --> 0:11:11.359 And I think, I know I feel the same way about. 0:11:11.080 --> 0:11:14.120 This Chamber of Progress CEO Adam Kavakovitch, thank you an 0:11:14.160 --> 0:11:26.199 intense start actually to this Friday's bienveig technology. Okay, you're 0:11:26.200 --> 0:11:28.560 about to be looking at the US listed shares or 0:11:28.640 --> 0:11:33.280 ADR's of soft Bank, the Japanese tech conglomerate, kind of 0:11:33.280 --> 0:11:36.720 like Japanese trading Overnight down the most in about three months. 0:11:36.760 --> 0:11:41.760 Overnight founder Masaoshi's son pledged to help create AI that's 0:11:41.920 --> 0:11:46.600 thousands of times smarter than any human. A SoftBank's annual meeting, 0:11:46.640 --> 0:11:49.720 he outlined a future that's built on SoftBank's investment in 0:11:49.760 --> 0:11:53.439 the chit design firm ARM, and argued that ARMS technology 0:11:53.600 --> 0:11:57.040 will go into a thriving ecosystem of robots and powerful 0:11:57.120 --> 0:12:01.320 data centers, and at times, Sun was visibly emotional talking 0:12:01.360 --> 0:12:06.040 about his goal of realizing artificial super intelligence. 0:12:10.880 --> 0:12:13.600 It may sound strange, but I think I was born 0:12:13.640 --> 0:12:15.000 to realize ASI. 0:12:16.240 --> 0:12:20.400 I am super serious about it. Thought we'll go up do. 0:12:20.679 --> 0:12:24.440 I think ASI will continue in the next ten years. 0:12:24.800 --> 0:12:27.760 It will be ten times smarter than humans. 0:12:28.880 --> 0:12:31.679 So soft banks japan listed shares are up almost sixty 0:12:31.720 --> 0:12:34.439 percent this year, and the net asset value of its 0:12:34.440 --> 0:12:38.000 holdings has hit two hundred and fourteen billion dollars largely 0:12:38.320 --> 0:12:41.160 on arms performance and a turnaround in some of its 0:12:41.200 --> 0:12:46.040 startup bets. But activists are circling Elliott Investment Management has 0:12:46.080 --> 0:12:48.160 built a stake in soft Bank of more than two 0:12:48.200 --> 0:12:52.559 billion dollars and is calling for buybacks. Some brushed off 0:12:52.640 --> 0:12:56.360 questions and pleaded with investors to quote root for him 0:12:56.520 --> 0:13:01.000 as he chases his dream of artificial super inteentgence. Joining 0:13:01.040 --> 0:13:03.440 me mout to discuss the markets and a bit about 0:13:03.440 --> 0:13:07.079 soft Bank is Fiona Senkota from City Index. I mean, 0:13:07.080 --> 0:13:10.640 what was so interesting about this kind of spectacle almost 0:13:10.920 --> 0:13:14.719 in soft Bank's annual meeting is Massiosci's son wanted to 0:13:14.760 --> 0:13:19.200 talk about the big picture ASI, but investors wanted what 0:13:19.280 --> 0:13:22.680 investors always want, dividend, buy back, stock split. 0:13:22.760 --> 0:13:23.640 What did you make of that? 0:13:24.320 --> 0:13:24.560 Yeah? 0:13:24.640 --> 0:13:27.559 Completely, you know, I think it's quite an interesting because 0:13:27.559 --> 0:13:29.640 it sort of almost brings up about. 0:13:29.360 --> 0:13:31.160 A change of strategy for. 0:13:32.840 --> 0:13:35.600 Soft Bank from this sort of defensive position that I 0:13:35.600 --> 0:13:37.480 think it has had over the past few years for 0:13:37.600 --> 0:13:41.319 much more offensive position, as we have this really ambitious 0:13:41.480 --> 0:13:46.160 vision from some about ASI and the future of AI 0:13:46.280 --> 0:13:49.400 and what that means to some bank for soft Bank. 0:13:49.440 --> 0:13:51.600 But I think you can't get away from the fact 0:13:51.600 --> 0:13:54.440 that at the end of the day, investors do want 0:13:54.480 --> 0:13:58.600 to have returns. They have seen strong gains on the 0:13:58.640 --> 0:14:00.840 share price, you know, as you pointed out, we've seen 0:14:00.840 --> 0:14:04.199 a sixty percent rally in the share price so far 0:14:04.280 --> 0:14:06.360 this year. That obviously comes on the back of one 0:14:06.400 --> 0:14:10.120 hundred and twenty four percent rally in arm holdings. But 0:14:10.320 --> 0:14:12.199 you know, at the end of the day, yet, investors 0:14:12.240 --> 0:14:14.840 want to see what those numbers are bringing back, and 0:14:14.880 --> 0:14:16.040 they want to see you. 0:14:16.000 --> 0:14:18.800 Know, share buyo bike, share buy back. That's going to 0:14:18.800 --> 0:14:20.080 be useful for them as well. 0:14:20.240 --> 0:14:23.440 Although as we said, you know, the share price growth 0:14:23.560 --> 0:14:24.920 has been strong. 0:14:25.040 --> 0:14:29.600 It's hard to pick out what the prevailing factor is. 0:14:29.560 --> 0:14:30.840 In the market right now. 0:14:30.960 --> 0:14:32.400 You know, at the top of the program, we talked 0:14:32.400 --> 0:14:35.840 about the concern with valuations in videos trading it forty 0:14:35.880 --> 0:14:39.000 five times twelve month forward earning. So we're going to 0:14:39.000 --> 0:14:42.720 look at Apple's valuation later in the program. And then 0:14:42.760 --> 0:14:47.280 if you take the soft bank example, like many investors 0:14:47.320 --> 0:14:50.600 to summarize, there just seems to be a wholehearted belief 0:14:50.640 --> 0:14:52.600 that you have to be in AI at all layers 0:14:52.640 --> 0:14:54.600 of the stack, and if you're not, you'll be left behind. 0:14:54.880 --> 0:14:56.160 So which comes out on top. 0:14:56.840 --> 0:14:59.520 Yeah, you know, I think we can't get away from this. 0:14:59.720 --> 0:15:03.360 I that AI has really driven such a strong rally 0:15:04.280 --> 0:15:07.320 in AI stocks, and obviously that's sort of bled out 0:15:07.320 --> 0:15:11.120 into or transferred out into record highs in the s 0:15:11.200 --> 0:15:11.440 and P. 0:15:11.520 --> 0:15:15.440 Five hundred and on the Nasdak this week as well. 0:15:15.560 --> 0:15:17.200 So you know, I think at the end of the day, 0:15:17.200 --> 0:15:20.760 there might be this sense that perhaps the AI try 0:15:20.920 --> 0:15:23.760 trade right now is a little bit over hyped, but 0:15:23.840 --> 0:15:27.000 I think over the long term that's just not the case, 0:15:27.040 --> 0:15:29.400 and that's the sense that investors are having. 0:15:30.200 --> 0:15:32.120 You know, we're just really opening the. 0:15:32.160 --> 0:15:37.280 Door to the realization and the understanding of what the 0:15:37.320 --> 0:15:43.160 real world applications of AI actually are, and that's what's 0:15:43.280 --> 0:15:45.000 really supporting. 0:15:44.680 --> 0:15:46.400 The rally that we have seen. 0:15:46.520 --> 0:15:49.160 So, you know, although as you mentioned, there are some 0:15:49.240 --> 0:15:53.840 suggestions that there could be some level of lofty valuations 0:15:53.920 --> 0:15:55.800 involved here, I think at the end of the day, 0:15:55.840 --> 0:16:00.000 the long term case is very bullish as far as 0:16:00.040 --> 0:16:03.480 AI is concerned, and that's really supporting the share price. 0:16:03.720 --> 0:16:06.080 Obviously, we're going to have some pullbacks. 0:16:06.160 --> 0:16:09.800 No, no, rally is just one hundred percent higher, sure, 0:16:10.320 --> 0:16:11.040 but I think you. 0:16:10.960 --> 0:16:13.480 Know, investors are in, they're in on this case. 0:16:14.160 --> 0:16:16.320 We just showed in video it's down two percent in 0:16:16.360 --> 0:16:18.280 the session, but over the course of a week where 0:16:18.320 --> 0:16:21.480 it became the world's most valuable company, it's down a 0:16:21.520 --> 0:16:22.600 percentage point. 0:16:22.800 --> 0:16:23.680 Is this rally over? 0:16:24.360 --> 0:16:24.680 Do you know? 0:16:24.840 --> 0:16:28.280 You know, it's just a very small move lower after 0:16:28.520 --> 0:16:31.640 some very strong moves higher, you know, this month so far, 0:16:31.680 --> 0:16:35.560 and the video is up around sixteen percent, had impressive 0:16:35.640 --> 0:16:38.880 games last week. I mean, I don't think that the 0:16:38.960 --> 0:16:42.680 rally can necessarily maintain the speed that it's had, because 0:16:42.720 --> 0:16:45.920 it has been a really impressive speed that we've seen 0:16:45.960 --> 0:16:47.960 this share price rocket. 0:16:48.000 --> 0:16:50.040 You know, it's up one hundred and seventy. 0:16:49.720 --> 0:16:53.880 Percent so far this year, and that's not maintainable. It's 0:16:53.920 --> 0:16:56.080 not going to be maintainable. But I don't think that's 0:16:56.120 --> 0:16:58.320 to say that the rally's over. I think we could 0:16:58.320 --> 0:17:01.840 just perhaps potentially expect to slow for a more sustainable 0:17:01.960 --> 0:17:03.160 pace going forward. 0:17:03.560 --> 0:17:07.680 Piero Sua City Index, Happy Friday, have a fantastic weekend, 0:17:07.920 --> 0:17:10.040 and thank you for joining us on the show. Coming up, 0:17:10.160 --> 0:17:14.560 open Ai makes its first big and genuine acquisition. We're 0:17:14.560 --> 0:17:17.120 going to bring you the details next be right back. 0:17:17.359 --> 0:17:31.320 This is Bloomberg time for talking tech and first start. 0:17:31.400 --> 0:17:36.640 Former President Donald Trump finally appeared on the All In podcast. 0:17:36.119 --> 0:17:37.240 After a month of teasing. 0:17:37.480 --> 0:17:41.479 The podcast, co hosted by David sachsh Jamath Palihapatia, covered 0:17:41.520 --> 0:17:44.840 a range of topics, including real estate, the war in Ukraine, 0:17:45.280 --> 0:17:50.000 and artificial intelligence. Trump defended his tariff proposal, saying it 0:17:50.040 --> 0:17:53.960 would be crucial to keeping the dollar, the world's reserve currency. 0:17:54.280 --> 0:17:58.760 Plus Huawei Near's one billion active devices, The Chinese tech 0:17:58.760 --> 0:18:02.880 company saw sales of its smartphones climbed seventy two percent 0:18:03.240 --> 0:18:06.000 in the first five months of twenty twenty four, growing 0:18:06.000 --> 0:18:09.760 the number of Huawei's gadgets, which also use its operating system, 0:18:10.000 --> 0:18:13.440 to over nine hundred million. The latest figures underscore how 0:18:13.480 --> 0:18:16.600 the US sanctioned company is taking on the likes of 0:18:16.640 --> 0:18:20.720 Apple in the Chinese market and Indian groceries. Livery startup 0:18:20.880 --> 0:18:24.040 Zepto is preparing to go public this after the company 0:18:24.320 --> 0:18:27.560 more than doubled its valuation to three point six billion 0:18:27.600 --> 0:18:30.360 dollars from a financing round that was led by US 0:18:30.480 --> 0:18:33.119 and local investors. The company says it's on track to 0:18:33.200 --> 0:18:35.880 handle more than one billion dollars in goods a year 0:18:35.920 --> 0:18:38.800 and plans to double its warehouses to more than seven 0:18:38.880 --> 0:18:42.919 hundred by twenty twenty five. Also, car dealers aren't the 0:18:42.920 --> 0:18:45.440 only ones to be hit by recent attacks. 0:18:45.480 --> 0:18:47.280 The data of Quote Wizard. 0:18:46.960 --> 0:18:50.520 Consumers, a lending Tree subsidiary, are being sold off by hackers. 0:18:50.760 --> 0:18:56.080 Unauthorized access was detected on a cloud database hosted by Snowflake. 0:18:56.160 --> 0:18:59.280 Lending Tree shares are down as the company continues to 0:18:59.320 --> 0:19:03.960 investigate the size and scope of the hack. All right, 0:19:04.040 --> 0:19:07.439 let's get some m and a. Open ai has bought 0:19:07.640 --> 0:19:11.760 rock Set, an enterprise search analytics startup, marking the most 0:19:11.800 --> 0:19:15.679 significant acquisition to date for the high profile artificial intelligence 0:19:15.680 --> 0:19:18.480 company joining US now Bloomberg Sharing Gafari. 0:19:18.600 --> 0:19:19.560 So this is kind of interesting. 0:19:19.560 --> 0:19:22.320 The terms won't disclose, we don't know how much money 0:19:22.440 --> 0:19:25.600 was involved, basically, but it's kind of new and novel 0:19:25.640 --> 0:19:26.240 for open ai. 0:19:26.320 --> 0:19:29.520 Give me the details, right, So, this is the first 0:19:29.520 --> 0:19:32.200 time that open ai is acquiring a company where they're 0:19:32.240 --> 0:19:34.479 not just taking in the talent or doing what's called 0:19:34.520 --> 0:19:37.240 an aqua hier, but they're actually going to integrate the 0:19:37.320 --> 0:19:39.840 technology as well, which makes this a good Guinness. 0:19:40.600 --> 0:19:42.800 What I understand is, why is open ai need a 0:19:42.840 --> 0:19:44.760 company like rock Set, Like, what's the point? 0:19:45.160 --> 0:19:46.119 Well, if you think about it. 0:19:46.160 --> 0:19:48.680 Open Ai is really right now trying to grow not 0:19:48.720 --> 0:19:51.440 just their consumer but their enterprise business. And this is 0:19:51.480 --> 0:19:55.720 a company that has experience working with major customers across 0:19:55.760 --> 0:19:59.639 industries from finance to gaming. One big one that I 0:19:59.680 --> 0:20:02.399 saw on previous reports was jet Blue, for example, and 0:20:02.440 --> 0:20:04.720 what they do is actually work with customer data to 0:20:04.800 --> 0:20:08.399 help those customers index and search through that data. So 0:20:08.880 --> 0:20:10.080 you know, if you kind of put you and two 0:20:10.119 --> 0:20:12.440 together and think about where open Eye is trying to 0:20:12.440 --> 0:20:14.640 grow their business, it might make sense that they would 0:20:14.640 --> 0:20:17.879 go acquire a company that's specialized in dealing with this 0:20:18.000 --> 0:20:21.520 kind of more detailed business data to help them build 0:20:21.520 --> 0:20:21.880 that out. 0:20:22.080 --> 0:20:23.159 Bloomberg shrin Gufari. 0:20:23.200 --> 0:20:25.160 I have to say it's been a tremendously busy week 0:20:25.200 --> 0:20:28.880 for you all across the AIB, from Anthropic to open Ai, 0:20:29.240 --> 0:20:30.720 and a lot going on in the enterprise as well. 0:20:30.720 --> 0:20:31.639 Happy Friday to you. 0:20:40.240 --> 0:20:43.159 Welcome back to Bloomberg Technology ed Lovelow in San Francisco. 0:20:43.280 --> 0:20:45.600 So I've been talking about valuations and there's one chart 0:20:45.840 --> 0:20:48.200 that I saw this morning on the terminal and Bloomberg 0:20:48.200 --> 0:20:49.720 dot Com that I wanted to share with you, and 0:20:49.720 --> 0:20:54.440 this is it. Apple trading at around thirty times forward earnings, 0:20:54.640 --> 0:20:58.120 and there's been an a rally and Apple shares driven 0:20:58.600 --> 0:21:01.360 largely by artificial intelligence. It's the idea that we now 0:21:01.400 --> 0:21:05.440 have a clearer understanding of Apple's AI strategy. A lot 0:21:05.440 --> 0:21:08.400 of concern from both the byside and sell side is well, 0:21:08.400 --> 0:21:11.280 when does that strategy pay off? If you look at 0:21:11.480 --> 0:21:14.800 Bloomberg estimates for top line growth, there is some recovery 0:21:15.200 --> 0:21:18.000 in the second half twenty twenty four later in the year, 0:21:18.040 --> 0:21:20.920 but as the chart behind me shows pretty clearly, when 0:21:20.960 --> 0:21:23.760 Apple gets to a level of trading at thirty times 0:21:23.760 --> 0:21:27.720 forward earnings, it historically finds it really hard to sustain 0:21:27.800 --> 0:21:30.640