WEBVTT - Middle East Truce; Altman Returns as OpenAI CEO 0:00:02.560 --> 0:00:03.120 Good morning. 0:00:03.160 --> 0:00:06.120 I'm Nathan Hager and I'm Amy Morris. Here are the 0:00:06.160 --> 0:00:07.760 stories we're following today. 0:00:08.440 --> 0:00:10.639 We're going to begin with the deal in the Middle East. 0:00:10.680 --> 0:00:13.320 Israel and Hamas have come to an agreement that we'll 0:00:13.320 --> 0:00:16.639 see dozens of hostages freed from Gaza in return for 0:00:16.720 --> 0:00:19.120 a four day pause in the fighting and the release 0:00:19.120 --> 0:00:22.919 of Palestinian prisoners. Bloomberg Simon Marx begins our team coverage 0:00:22.960 --> 0:00:23.680 in Tel Aviv. 0:00:24.239 --> 0:00:27.240 In the fine print of the deal, there is an 0:00:27.280 --> 0:00:33.159 opportunity for additional days of so called pause. Israel have 0:00:33.320 --> 0:00:37.000 said that for every ten additional hostages they would be 0:00:37.000 --> 0:00:38.120 willing to add. 0:00:37.920 --> 0:00:40.600 An additional day of pause in the war. 0:00:41.240 --> 0:00:44.800 But at the same time, Benjamin Natanyahu, the Prime Minister, 0:00:45.320 --> 0:00:47.559 has been very clear to say this does not mean 0:00:47.600 --> 0:00:50.440 the end of the conflict and that their original goals 0:00:50.479 --> 0:00:55.920 to eradicate Harmas and deradicalize Gaza, etc. Is still very 0:00:55.960 --> 0:00:56.800 much the state to day. 0:00:57.040 --> 0:00:59.880 Bloomberg Simon Mark says the pause is expected to begin 0:01:00.080 --> 0:01:00.880 tomorrow morning. 0:01:01.240 --> 0:01:04.280 This temporary ceasefire was pushed for by the US and 0:01:04.319 --> 0:01:08.120 its allies. We get more from Bloomberg political contributor Genie 0:01:08.120 --> 0:01:10.560 she and Zano It is a big. 0:01:10.400 --> 0:01:13.880 Big move forward for many people, because it's really the 0:01:13.920 --> 0:01:17.640 first diplomatic breakthrough we've seen since the war began after 0:01:17.680 --> 0:01:20.880 the October seventh attack. But it comes with so much 0:01:20.920 --> 0:01:25.040 trepidation and so many questions. This is not a ceasefire, 0:01:25.160 --> 0:01:28.560 it's a pause. It comes also as a result of 0:01:28.800 --> 0:01:33.760 enormous pressure both inside Israel and internationally that the Israeli 0:01:33.880 --> 0:01:37.440 government has been feeling, particularly from the relatives of these 0:01:37.480 --> 0:01:39.760 two hundred and thirty six hostages. 0:01:40.080 --> 0:01:43.640 Bloomberg contributor Genie she and Zano says three Americans will 0:01:43.680 --> 0:01:46.000 be among the hostages leaving Gaza and Amy. 0:01:46.040 --> 0:01:48.760 Another major story we're following this morning is the return 0:01:48.880 --> 0:01:52.600 of sam Aldman to open Ai, just days after he 0:01:52.760 --> 0:01:56.240 was fired then hired by Microsoft. Sam Aldman is back 0:01:56.280 --> 0:01:59.480 as CEO, and the board at OpenAI is in for 0:01:59.560 --> 0:02:03.280 and over. We get more from Bloomberg intelligence analyst Matthew Bloxham. 0:02:03.640 --> 0:02:05.840 I kind of think that the board were backed into 0:02:06.360 --> 0:02:08.240 a corner, and you know, I think they were just 0:02:08.720 --> 0:02:12.080 seeing the company unravel, so I don't think they had 0:02:12.440 --> 0:02:15.200 really any choice. I think from Nah, the big questions 0:02:15.240 --> 0:02:17.880 is going to be, Okay, what's the detail, what you know, 0:02:17.919 --> 0:02:21.080 beyond a new board that looks more supportive of Samltman, 0:02:21.440 --> 0:02:23.400 Are they going to be more profound changes to the 0:02:23.440 --> 0:02:26.280 structure of the company. What does this mean for the 0:02:26.280 --> 0:02:30.120 possible IPO, How they're going to kind of commercialize things 0:02:30.120 --> 0:02:34.040 like chat GPT more effectively, to kind of take advantage 0:02:34.040 --> 0:02:34.840 of the opportunity that. 0:02:35.720 --> 0:02:38.480 Matt Bloxam with Bloomberg Intelligence says. The initial board will 0:02:38.480 --> 0:02:41.639 be led by Brett Taylor, a former co CEO of Salesforce. 0:02:41.919 --> 0:02:46.120 Other directors include Quorra CEO, Adam DiAngelo, and Larry Summers, 0:02:46.160 --> 0:02:49.920 the former Treasury secretary and a paid contributor to Bloomberg and. 0:02:49.840 --> 0:02:50.400 Source of say. 0:02:50.440 --> 0:02:53.840 Microsoft is also likely to get representation on the new board, 0:02:53.960 --> 0:02:57.560 certainly as an observer, possibly with one or more board seats. 0:02:57.720 --> 0:03:01.160 In a post on x Microsoft seat O Satya Nadella 0:03:01.440 --> 0:03:04.240 praised the changes at open Ai, calling them quote a 0:03:04.280 --> 0:03:07.280 first essential step on a path to a more stable, 0:03:07.600 --> 0:03:09.680 well informed, and effective governance. 0:03:09.960 --> 0:03:12.680 On a very busy morning, Amy, We're also following market 0:03:12.720 --> 0:03:15.720 reaction to one of the most highly anticipated earnings reports. 0:03:16.320 --> 0:03:19.880 Shares of Nvidia are down nearly one percent in early training. 0:03:19.919 --> 0:03:23.440 That's despite an earnings blowout that went past analyst estimates. 0:03:23.520 --> 0:03:25.800 We got more on that from Bloomberg technology reporter at 0:03:25.880 --> 0:03:27.160 Ludlow in San Francisco. 0:03:27.520 --> 0:03:29.919 We go to the outlook for the fiscal fourth quarter, 0:03:30.400 --> 0:03:33.560 sales would be twenty billion dollars plus or minus two percent. 0:03:34.080 --> 0:03:36.280 And while that's a really strong outlook, there was some 0:03:36.320 --> 0:03:40.640 commentary from Nvidia that they expect sales or shipments of 0:03:40.760 --> 0:03:44.000 GPUs to China to drop in the current period or 0:03:44.040 --> 0:03:47.600 the fiscal fourth quarter, as a direct result of the 0:03:47.680 --> 0:03:51.560 expanded US technology export curves. What we're talking about is 0:03:51.600 --> 0:03:55.480 in Vidia's inability to ship the cutting edge GPUs to 0:03:55.600 --> 0:03:58.480 the Chinese market, but they were very clear that will 0:03:58.480 --> 0:04:01.760 be offset by demand from other markets around the world. 0:04:02.120 --> 0:04:05.360 Bloomberg's Ed Ludlow says another reason behind in Vidia's drop 0:04:05.480 --> 0:04:07.800 was its run up this year, and video was already 0:04:07.840 --> 0:04:10.160 higher by more than two hundred and forty percent. 0:04:10.720 --> 0:04:13.280 And a big name in the cryptocurrency space is taking 0:04:13.320 --> 0:04:17.320 a legal fall. Binance, the world's largest crypto exchange, has 0:04:17.360 --> 0:04:21.440 pleaded guilty to anti money laundering and sanctions violations. Attorney 0:04:21.480 --> 0:04:25.839 General Merrit Garland says Binance failed to stop suspicious transactions 0:04:25.960 --> 0:04:30.320 with terror groups, including Hamas and violated several laws, including 0:04:30.360 --> 0:04:31.760 the Bank Secrecy Act. 0:04:32.279 --> 0:04:36.440 These laws ensure that our financial institutions are not available 0:04:36.640 --> 0:04:42.640 to designated terrorist organizations, drug traffickers, and sanctioned nation states 0:04:42.640 --> 0:04:45.719 that threaten public safety and our national security. 0:04:46.080 --> 0:04:49.120 Attorney General Garland says Binance will pay four point three 0:04:49.200 --> 0:04:53.039 billion dollars under the deal, and its CEO CZZL will 0:04:53.080 --> 0:04:55.800 step down and pay a fifty million dollar fine. Sal 0:04:55.839 --> 0:04:57.919 could face up to ten years in prison, but is 0:04:58.000 --> 0:05:00.000 expected to serve no more than eighteen months. 0:05:00.000 --> 0:05:02.800 Months And on the economic front, amy investors will have 0:05:02.800 --> 0:05:06.120 to navigate a number of reports this morning. Almost all 0:05:06.200 --> 0:05:10.359 of Thursday and Friday's numbers have been compressed into today, 0:05:10.600 --> 0:05:13.120 so let's get a preview now from Bloomberg's Michael McKay. 0:05:13.480 --> 0:05:17.080 The Marquee release is initial jobless claims. Wall Street wants 0:05:17.080 --> 0:05:19.560 to know if last week's surprise jumped to two hundred 0:05:19.600 --> 0:05:22.040 and thirty one thousand was a one off or a 0:05:22.040 --> 0:05:25.360 sign the labor market is starting to cool significantly October 0:05:25.440 --> 0:05:27.920 durable goods orders. Meanwhile, we'll offer the first clues to 0:05:28.120 --> 0:05:31.200 business spending plans in the fourth quarter. A drop in 0:05:31.279 --> 0:05:34.880 Boeing jet sales may depress the overall headline number, while 0:05:34.880 --> 0:05:38.120 capital goods orders, a proxy for business spending in GDP, 0:05:38.600 --> 0:05:42.080 are forecast to eke out only a marginal gain. Finally, 0:05:42.120 --> 0:05:45.440 the University of Michigan's final reading of consumer sentiment for 0:05:45.640 --> 0:05:50.359 November may influence some investors' views of holiday season consumer spending. 0:05:50.400 --> 0:05:58.880 Michael McKee, Bloomberg Radio. 0:05:56.320 --> 0:05:58.200 All right, thank you, Nathan. Time now for a look 0:05:58.240 --> 0:06:00.760 at some of the other stories making news around the world, 0:06:00.960 --> 0:06:03.800 and for that were joined by Bloomberg's of John Tucker, Good. 0:06:03.640 --> 0:06:07.400 Morning John, and Good Morning Amy. The Pentagon confirming it 0:06:07.520 --> 0:06:11.360 conducted an air strike against Iranian backed militants operating out 0:06:11.400 --> 0:06:13.599 of Iraq. Let's get more of this story this morning 0:06:13.640 --> 0:06:15.080 from Bloomberg's Ed Baxter. 0:06:16.040 --> 0:06:18.719 The Pentagon says it was in response to several short 0:06:18.839 --> 0:06:22.239 range missile attacks, Pentagon spokeswoman Sabrina. 0:06:21.839 --> 0:06:25.560 Sangh Immediately following the attack, a US military AC one 0:06:25.640 --> 0:06:28.960 thirty aircraft in the area conducted a self defense strike 0:06:29.040 --> 0:06:32.320 against an Iranian backed militia vehicle and the number of 0:06:32.320 --> 0:06:36.679 Iranian backed militia personnel involved in this attack. This self 0:06:36.680 --> 0:06:39.560 defense strike resulted in some hostile fatalities. 0:06:39.760 --> 0:06:43.159 Singh says some US service members were injured in the attack. 0:06:43.480 --> 0:06:47.440 She also says the US conducted three additional strikes in Syria. 0:06:48.080 --> 0:06:49.600 Ed Baxter Bloomberg. 0:06:49.160 --> 0:06:52.320 Radio Florida Governor Ron de Santis secure the endorsement of 0:06:52.520 --> 0:06:57.520 influential Iowa conservative Bob vander Platz. Vander Platz backing is 0:06:57.560 --> 0:07:00.320 the second major endorsement for DeSantis and Iowa the month 0:07:00.360 --> 0:07:03.599 following Governor Kim Reynolds. Both vent or Plants and Renolds 0:07:03.640 --> 0:07:08.200 are influential among evangelical voters a sizeable bloc of the state. 0:07:08.560 --> 0:07:11.560 Desantas is making a make or break prush shit in 0:07:11.600 --> 0:07:14.560 that state, banking on a strong showing they can give 0:07:14.640 --> 0:07:17.480 him momentum to stay in a race. Pulls showed Desanta's 0:07:17.560 --> 0:07:21.440 trailing Donald Trump by over forty five points. For those 0:07:21.560 --> 0:07:25.400 early holiday travelers, leaving before dawn to avoid the rush 0:07:25.720 --> 0:07:28.080 may work in some parts of the nation, but not 0:07:28.200 --> 0:07:31.680 in other parts. Bloomberg meteorologist Rod Carolyn. 0:07:32.240 --> 0:07:35.080 Most of the country looking good for travel on this Wednesday, 0:07:35.120 --> 0:07:38.000 ahead of the big Thanksgiving Day holiday. We have problems, though, 0:07:38.040 --> 0:07:40.640 in the Eastern United States, with rain from North Florida 0:07:40.640 --> 0:07:44.000 along the coastal Carolinas and into parts of New England, 0:07:44.120 --> 0:07:46.200 especially northern New England, where we be dealing with some 0:07:46.280 --> 0:07:50.160 snow today. The Pacific Northwest will also deal with precipitation rain, 0:07:50.320 --> 0:07:51.480 likely at the lower elevations. 0:07:51.480 --> 0:07:53.520 With snow in the mountains, today is one of the 0:07:53.520 --> 0:07:56.440 busiest travel days of the year. A Florida judge has 0:07:56.480 --> 0:07:59.840 ruled Tesla's trial over a twenty nineteen fatal crash blamed 0:07:59.840 --> 0:08:03.440 of an autopilot will include acclaim against the company for 0:08:03.640 --> 0:08:07.679 punitive damages. The judge at Palm Beach County cited evidence 0:08:07.720 --> 0:08:11.440 that shows CEO Elon Moskin staff engineers knew its driver 0:08:11.520 --> 0:08:15.920 assistance system was defective. Global News twenty four hours a 0:08:16.000 --> 0:08:18.720 day and whenever you want it with Bloomberg News. Now, 0:08:19.000 --> 0:08:21.760 I'm John Tucker and this is Bloomberg Gamy. 0:08:21.920 --> 0:08:28.440 All right, thank you, John. Time enough for our Bloomberg 0:08:28.480 --> 0:08:30.800 Sports update. For that, we bring in John stash Hour. 0:08:31.480 --> 0:08:33.920 Aiming only two weeks to go in the college football 0:08:33.960 --> 0:08:38.160 regular season, and the College Football Playoff Committee out with 0:08:38.240 --> 0:08:41.240 its latest poll last night. Georgia remains number one, with 0:08:41.320 --> 0:08:45.040 Ohio State second, Michigan third. Those two teams play each 0:08:45.080 --> 0:08:48.200 other Saturday in ann Arbor. A change at the four 0:08:48.280 --> 0:08:52.760 spot Washington moving ahead of Florida State, the Committee denying 0:08:52.840 --> 0:08:54.840 that it's due to Florida State having just lost its 0:08:54.920 --> 0:08:58.640 quarterback Jordan Travis to a season ending injury. Oregon is 0:08:58.679 --> 0:09:02.960 currently sixth, will play Oregon State on Friday. Texas is seventh, 0:09:03.200 --> 0:09:07.200 The Longhorns played Texas Tech on Friday, and Alabama is eighth, 0:09:07.280 --> 0:09:10.079 and the Crimston Tide play the Iron Bowl Game against 0:09:10.120 --> 0:09:13.360 Auburn on Saturday. College basketball, a lot of the top 0:09:13.400 --> 0:09:15.960 teams of the nation have gone to Maui. Number one 0:09:16.040 --> 0:09:19.520 Kansas lost to fourth rank Marquette seventy three p fifty nine, 0:09:19.840 --> 0:09:23.520 second ranked Perdue a seventy one sixty seven victory over 0:09:23.600 --> 0:09:28.199 seventh ranked Tennessee. In the NBA a game between Indiana 0:09:28.240 --> 0:09:31.760 and Atlanta, and both teams scored over one hundred and 0:09:31.760 --> 0:09:34.240 fifty points. That's only the seventh time that's ever happened 0:09:34.240 --> 0:09:37.440 in NBA history. The Pacers beat the Hawks one fifty 0:09:37.559 --> 0:09:41.199 seven to one fifty two. Both teams shot sixty percent 0:09:41.240 --> 0:09:44.480 from the field. San Diego Padres have named Mike Schilt 0:09:44.520 --> 0:09:47.160 their new manager. He managed the Cardinals for four years, 0:09:47.160 --> 0:09:50.760 got them into the playoffs three times. He replaces Bob Melvin, 0:09:50.800 --> 0:09:54.360 who left the Padres to go to the Giants. Willie Hernandez, 0:09:54.360 --> 0:09:56.880 who won the Cy Young Award and the MVP in 0:09:56.960 --> 0:09:59.480 nineteen eighty four pitching for the Tigers, has passed away. 0:10:00.040 --> 0:10:02.800 Sixty nine Josh Dasha were Bloomberg Sports. 0:10:05.559 --> 0:10:08.560 From coast to coast, from New York to San Francisco, 0:10:08.880 --> 0:10:13.520 Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg 0:10:13.559 --> 0:10:15.640 Business app, and Bloomberg dot Com. 0:10:15.760 --> 0:10:20.320 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. 0:10:20.480 --> 0:10:24.680 The relentless war in Gaza, Sin Thomas's October seventh attack 0:10:24.800 --> 0:10:28.360 on Israel looks like it's taking a pause. Both sides 0:10:28.440 --> 0:10:31.560 have reached a deal that we'll see Hamas release dozens 0:10:31.600 --> 0:10:35.080 of hostages in exchange for Palestinian prisoners. And for more 0:10:35.120 --> 0:10:37.480 on this agreement, we are joined by Bloomberg News Senior 0:10:37.600 --> 0:10:40.760 editor Bill Ferries. Bill, thanks for being with us. Let's 0:10:40.760 --> 0:10:42.719 start off first with the terms. 0:10:42.360 --> 0:10:43.000 Of this deal. 0:10:43.080 --> 0:10:46.640 What exactly have Israel and Hamas agreed to after these 0:10:46.760 --> 0:10:47.679 days of talks. 0:10:49.240 --> 0:10:51.560 Well, what we know from both sides and from the 0:10:51.600 --> 0:10:55.120 Kataris who have been really kind of leading the mediation 0:10:55.200 --> 0:10:59.000 efforts here is that within the next less than twenty 0:10:59.000 --> 0:11:03.760 four hours noway point, what we call a humanitarian pause 0:11:03.800 --> 0:11:07.520 in the conflict will go into effect. Hamas has agreed 0:11:07.600 --> 0:11:11.320 to free initially fifty hostages. We expect these to be 0:11:12.040 --> 0:11:15.160 women and children who were taken when they stormed into 0:11:15.240 --> 0:11:19.960 Israel on October seventh. In return, Israel will begin looking 0:11:20.000 --> 0:11:24.800 at releasing perhaps dozens of Palestinian prisoners, also likely to 0:11:24.840 --> 0:11:28.000 be women and children. But the interesting thing about this 0:11:28.200 --> 0:11:30.800 is it's a four day pause, but there's a potential 0:11:30.920 --> 0:11:35.400 for an extension here if Hamas agrees to release more hostages. 0:11:35.480 --> 0:11:40.800 So basically for every additional ten hostages the Hamas releases, 0:11:40.880 --> 0:11:45.559 that extends the pause by a day. Remember, Israel estimates 0:11:45.559 --> 0:11:49.280 about two hundred and forty people were taken hostage during 0:11:49.280 --> 0:11:52.120 those October seventh attacks, so this has the potential to 0:11:52.160 --> 0:11:55.960 extend the deal quite a bit. In return, as I said, 0:11:56.000 --> 0:11:59.960 Hamas gets some prisoner releases from Israeli prisons. They also 0:12:00.080 --> 0:12:04.280 so get an end to over flights and bombing air 0:12:04.320 --> 0:12:11.520 strikes of Gaza in that time, and really the chance 0:12:11.679 --> 0:12:14.760 to get a lot more aid flowing in in terms 0:12:14.840 --> 0:12:18.240 of medical supplies and fuel for nonprofit groups. That do 0:12:18.679 --> 0:12:22.520 humanitarian work, So all sides I think had an interest 0:12:22.559 --> 0:12:25.760 at this point in getting reaching a deal. There were 0:12:25.760 --> 0:12:27.720 a lot of hiccups in the process, but it looks 0:12:27.760 --> 0:12:30.960 like it should be going into effect within the coming day. 0:12:31.920 --> 0:12:35.160 Let's talk about some of those hiccups, because, as you know, Bill, 0:12:35.280 --> 0:12:39.640 Israeli Prime Minister Benjamin Netanyahu had said as these talks 0:12:39.640 --> 0:12:41.920 were underway that he wouldn't agree to any pause at 0:12:41.920 --> 0:12:45.160 all unless all the hostages were freed. So what did 0:12:45.160 --> 0:12:48.000 it take to get at least this kind of a 0:12:48.080 --> 0:12:51.079 deal done. The possibility that we could see more pauses, 0:12:51.520 --> 0:12:54.720 and this potential for a trickle. 0:12:54.600 --> 0:12:56.920 Of hostages to be released over time. 0:12:58.280 --> 0:13:00.240 Well, you're right, it wasn't clear at all that it deal. 0:13:00.320 --> 0:13:04.520 Whatever happened, Katar got involved soon after those October seventh 0:13:04.520 --> 0:13:08.000 attacks UH and started trying to find a way to 0:13:08.080 --> 0:13:11.840 focus really on hostages and getting them back the US. 0:13:11.880 --> 0:13:16.240 The Biden administration was deeply involved in these talks as well, 0:13:16.640 --> 0:13:19.000 and you're right they did. There was this push to 0:13:19.000 --> 0:13:22.560 have all hostages released at once that didn't seem to 0:13:22.600 --> 0:13:25.920 be getting much traction, and Hamas came back with an 0:13:25.920 --> 0:13:29.839 offer of fifty fifty hostages in one trench and then 0:13:30.320 --> 0:13:33.280 and then put potentially more in the coming days. What 0:13:33.400 --> 0:13:36.319 we know is that the leader of Qatar continued to 0:13:36.360 --> 0:13:41.160 stay very engaged in this and we uh what we 0:13:41.440 --> 0:13:47.800 what we ended up seeing was was really in agreement 0:13:47.840 --> 0:13:50.640 to kind of kind of bridge that divide with the 0:13:50.679 --> 0:13:54.760 fifty UH. President Biden had had a conversation with President 0:13:54.960 --> 0:13:57.920 Prime Minister net Yahoo at one point, and they really 0:13:57.960 --> 0:14:01.680 felt like this was probably the best deal they could 0:14:01.720 --> 0:14:04.320 get for now. The US was really encouraged by the 0:14:04.360 --> 0:14:07.600 early release of a couple Americans who were taken in 0:14:07.640 --> 0:14:11.559 the October seventh grade, and they basically built on that. 0:14:11.720 --> 0:14:14.520 So they went from an initial request of fifty to 0:14:15.120 --> 0:14:18.400 what could be dozens more than that. We kind of 0:14:18.400 --> 0:14:20.680 have to see where it goes. But the priority was 0:14:20.680 --> 0:14:25.560 always initially on women and children and the elderly civilians, 0:14:25.600 --> 0:14:29.560 and then looking more at soldiers from both sides, and 0:14:29.600 --> 0:14:32.400 I think that's where talks on further releases will get 0:14:32.400 --> 0:14:33.160 more complicated. 0:14:34.160 --> 0:14:38.400 Even as we see this deal get implemented, as you say, 0:14:38.840 --> 0:14:42.400 possibly as soon as after tomorrow, Prime Minister Natan Yahoo 0:14:42.560 --> 0:14:45.320 is saying that this won't mean that the war itself 0:14:45.400 --> 0:14:48.640 is coming to an end. What should we expect when 0:14:48.680 --> 0:14:52.040 it comes to the fighting and the progress that Israel 0:14:52.080 --> 0:14:56.800 wants to make against Thomas once this potentially initial pause 0:14:57.200 --> 0:14:57.880 takes effect. 0:14:58.520 --> 0:15:00.360 Yeah, I mean, I think it's important to note that 0:15:00.440 --> 0:15:03.520 all sides are calling this a pause. I think I've 0:15:03.560 --> 0:15:06.280 seen the word truth, so temporary truth, things like that. 0:15:06.680 --> 0:15:09.360 No one is calling this an end to the conflict. 0:15:09.600 --> 0:15:13.360 Before they voted to accept this agreement, they've said that 0:15:13.680 --> 0:15:14.680 the war will continue. 0:15:14.680 --> 0:15:15.000 They can. 0:15:15.040 --> 0:15:18.920 They want to go after eliminating Hamas and returning all 0:15:18.920 --> 0:15:21.320 the hostages, and they said, you know, when this truce ends, 0:15:21.320 --> 0:15:23.920 they will they will go back in the fighting will zoom. 0:15:24.000 --> 0:15:27.160 So it's an important significant step here, but it's not 0:15:27.320 --> 0:15:28.720 the end of the conflict as we. 0:15:28.720 --> 0:15:29.760 Know in Okay. 0:15:29.800 --> 0:15:33.600 Bill Ferries, Bloomberg News senior editor, joining us this morning 0:15:33.720 --> 0:15:36.960 after we learned that a deal has been struck now 0:15:36.960 --> 0:15:41.360 between Israel and Hamas to pause the fighting in exchange 0:15:41.600 --> 0:15:46.280 for hostage releases at least some of the hostages initially 0:15:46.520 --> 0:15:50.560 being released from Gaza. Now we want to turn to 0:15:51.160 --> 0:15:55.240 the latest deal at open Ai. This saga that began 0:15:55.520 --> 0:16:01.240 last Friday may be over after intense pressure from investors. 0:16:01.640 --> 0:16:05.280 Sam Altman is returning as the CEO of the chat 0:16:05.320 --> 0:16:09.080 GPT parent company, and the board at OpenAI looks like 0:16:09.160 --> 0:16:11.880 it is about to go through a serious overhaul. Let's 0:16:11.880 --> 0:16:14.520 bring in Alex web for more on this story. He 0:16:14.600 --> 0:16:17.120 covers tech for us for Bloomberg News and has been 0:16:17.160 --> 0:16:22.000 following this since the sudden ouster last Friday and now 0:16:22.360 --> 0:16:23.280 the sudden return. 0:16:24.040 --> 0:16:26.600 Help us make sense of this, Alex, I. 0:16:26.600 --> 0:16:29.080 Mean, it's a big victory for Microsoft. Essentially. The thing 0:16:29.120 --> 0:16:31.440 that appears to have happened, and this is what's on 0:16:31.480 --> 0:16:34.600 the reporting suggests last week is that one of the 0:16:34.600 --> 0:16:37.840 reasons Sam Alton was ousted was concerned that he was 0:16:38.240 --> 0:16:42.880 prioritizing the commercial impulses of the company over what actually 0:16:43.280 --> 0:16:46.600 is his mandate, mainly to improve and this genuinely is 0:16:46.640 --> 0:16:48.400 the wording. It is to work for the benefit of 0:16:48.440 --> 0:16:53.320 all humanity. Now Microsoft is almost certainly going to be 0:16:53.320 --> 0:16:56.680 getting great oversight, greater sway at a board level over 0:16:56.720 --> 0:16:59.560 what happened at open Ai. The company is therefore going 0:16:59.600 --> 0:17:01.840 to be run was so slightly more in the interest 0:17:01.840 --> 0:17:06.040 of Microsoft, not necessarily in the interest of all humanity. 0:17:06.960 --> 0:17:10.280 The three members have been appointed to the board, Adam DiAngelo, 0:17:10.320 --> 0:17:12.560 the see of Kor, who was already on there. The 0:17:12.600 --> 0:17:14.960 new ones are going to be Larry Summers, of course, 0:17:15.000 --> 0:17:19.760 former Treasury Section under Bill Clinton, and Brett Taylor, the 0:17:19.800 --> 0:17:21.800 former co CEO of Salesforce. They are going to be 0:17:21.800 --> 0:17:26.040 as many as nine additional board members. The expectation is 0:17:26.080 --> 0:17:29.720 perhaps two of those could be representatives of Microsoft, and 0:17:29.840 --> 0:17:32.320 Altman himself could well rejoin the board. 0:17:32.600 --> 0:17:35.159 And we should note in the interest of transparency that 0:17:35.400 --> 0:17:39.119 Larry Summers, along with joining the board at OpenAI as 0:17:39.160 --> 0:17:43.400 a paid contributor to Bloomberg, with these additions, at least 0:17:43.400 --> 0:17:46.440 initial additions to the board, Alex, it sounds like that 0:17:46.520 --> 0:17:49.840 could be the bigger deal here than just simply the 0:17:49.880 --> 0:17:52.240 return of Sam Altman as the CEO. 0:17:53.240 --> 0:17:55.760 Yeah, the thing we'd heard on Monday from sat In Nodella, 0:17:55.760 --> 0:17:58.919 the Microsoft CEO, in an interview Bloomberg Television. He had 0:17:58.920 --> 0:18:03.439 said he wanted improved to governance at open AI. It 0:18:03.480 --> 0:18:06.240 seems as though the board composition was the sticking point 0:18:06.240 --> 0:18:08.440 and why it took a good few days to reach 0:18:08.480 --> 0:18:10.639 a resolution, given that we had heard as early as 0:18:10.680 --> 0:18:14.760 Sunday that there there were moves from both sides to 0:18:14.800 --> 0:18:19.240 bring Sam Altman back into the fold. When Nadella says 0:18:19.240 --> 0:18:23.400 he wants improvements to governance, everybody more or less understood 0:18:23.400 --> 0:18:25.440 that to mean he wanted Microsoft to have better inside. 0:18:25.480 --> 0:18:28.600 Because this completely blindsided Microsoft is firing of Sam Wortman 0:18:28.640 --> 0:18:33.120 and subsequent departure of Greg Brockman, the president of the company. 0:18:34.080 --> 0:18:37.960 Microsoft had no forewarning of that. They learned it pretty 0:18:38.040 --> 0:18:39.720 much at the same time the rest of the world did. 0:18:40.320 --> 0:18:42.359 The understanding is it was maybe a few minutes before 0:18:42.359 --> 0:18:44.399 they put the rest release or the post on their 0:18:44.440 --> 0:18:48.000 website up. So you know, surprises for big businesses are 0:18:48.040 --> 0:18:50.840 not considered good, and that's clearly something that Microsoft wanted 0:18:50.880 --> 0:18:51.200 to fix. 0:18:51.440 --> 0:18:57.680 To your point earlier about this signaling the idea that 0:18:57.720 --> 0:18:59.879 this could take the open AI in the direction of 0:19:00.800 --> 0:19:03.440 where Microsoft wants to go as opposed to. 0:19:03.800 --> 0:19:05.280 The betterment of humanity. 0:19:05.359 --> 0:19:08.240 Talk a little bit more about what this could mean 0:19:08.400 --> 0:19:12.520 for open AI and the competition, this massive competition that 0:19:12.560 --> 0:19:14.760 we're seeing between Microsoft and so many of the other 0:19:14.800 --> 0:19:17.119 players in the artificial intelligence space. 0:19:17.160 --> 0:19:18.640 What could this mean down the line. 0:19:19.040 --> 0:19:22.199 So there are basically four big players, certainly in the 0:19:22.200 --> 0:19:27.880 Western hemisphere in advanced artificial intelligence research. There's deep Mind, 0:19:27.920 --> 0:19:30.359 which is now Google Deep Mind. It is part of Google. 0:19:30.400 --> 0:19:34.960 There is microsoft SORR Meta AI Research clearly part of Meta. 0:19:35.320 --> 0:19:38.440 There is open Ai, which is very closely aligned with Microsoft. 0:19:38.440 --> 0:19:41.440 And there is also an Anthropic which was founded by 0:19:41.720 --> 0:19:46.919 a bunch of departees from open Ai a few years ago. Google, 0:19:47.000 --> 0:19:49.720 Microsoft and Amazon are the ones really competing in the cloud, 0:19:49.840 --> 0:19:51.920 and at the moment, the real way to make money 0:19:51.960 --> 0:19:53.919 from AI is in the cloud. It is from not 0:19:53.920 --> 0:19:56.760 necessarily selling the AI services to companies to use. Is 0:19:56.800 --> 0:20:00.399 the processing power needed to run those AI serves, and 0:20:00.440 --> 0:20:03.320 that's where the margin really is. Google Microsoft fans and 0:20:03.359 --> 0:20:07.200 can compete very fiercely in that space. Microsoft has this 0:20:07.280 --> 0:20:09.879 huge benefit from the relationship with open Ai, but it 0:20:09.920 --> 0:20:12.920 does not technically own open Ai. And then the way 0:20:12.920 --> 0:20:16.159 that Google owns DeepMind. So that's really the lay of 0:20:16.200 --> 0:20:18.440 the land when it comes to the battlefield. This will 0:20:18.440 --> 0:20:22.040 help Microsoft potentially by hearing them more closely still to 0:20:22.119 --> 0:20:23.520 their long term business goals. 0:20:23.680 --> 0:20:26.240 Let's talk about the other AI story that everyone was 0:20:26.240 --> 0:20:28.959 waiting for even before last Friday. Of course, that's the 0:20:29.000 --> 0:20:33.280 earnings from Nvidia. Another is a solid quarter, but the 0:20:33.359 --> 0:20:36.719 shares are dropping ever so slightly this morning. 0:20:36.880 --> 0:20:39.760 What's the disconnect I mean. 0:20:39.720 --> 0:20:43.359 Look, the expectations for this company are absolutely sky high, 0:20:43.440 --> 0:20:47.000 and there was heading into the numbers some expectation that 0:20:47.160 --> 0:20:49.680 essentially a beat is a meat, right. People were expecting 0:20:49.720 --> 0:20:53.040 them to beat expectations, and if they didn't completely blow 0:20:53.080 --> 0:20:55.080 expectations out of the water, then there might be a 0:20:55.119 --> 0:20:57.639 little bit of profit taking. That certainly looks like what 0:20:57.800 --> 0:21:00.240 is happening now that the shares have been on such 0:21:00.240 --> 0:21:02.840 a tear recent month, are as an opportunity for you know, 0:21:02.880 --> 0:21:04.919 some investors to maybe just cash in a little bit 0:21:04.960 --> 0:21:07.840 on that. It doesn't appear to be anything particularly catastrophic. 0:21:07.840 --> 0:21:10.080 There's still a lot of growth left in this company. 0:21:10.400 --> 0:21:14.280 The only question marketting forward is what is the exposure 0:21:14.320 --> 0:21:16.639 to China? They want more exposure, but it looks as 0:21:16.680 --> 0:21:18.720 though the government is cracking down on some of that. 0:21:19.119 --> 0:21:20.639 How big an impact will that have. 0:21:23.800 --> 0:21:26.840 This is Bloomberg Daybreak Today, your morning brief on the 0:21:26.880 --> 0:21:30.400 story's making news from Wall Street to Washington and beyond. 0:21:30.440 --> 0:21:33.439 Look for us on your podcast b by six am 0:21:33.560 --> 0:21:37.920 Eastern each morning on Apple, Spotify, and anywhere else you 0:21:38.040 --> 0:21:39.120 get your podcasts. 0:21:39.640 --> 0:21:42.359 You can also listen live each morning starting at five 0:21:42.400 --> 0:21:45.040 am Wall Street time on Bloomberg eleven three to zero 0:21:45.040 --> 0:21:47.919 in New York, Bloomberg ninety nine to one in Washington, 0:21:48.000 --> 0:21:51.200 Bloomberg one six to one in Boston, and Bloomberg ninety 0:21:51.200 --> 0:21:52.560 sixty in San Francisco. 0:21:53.280 --> 0:21:56.840 Our flagship New York station is also available on your 0:21:56.960 --> 0:22:02.760 Amazon Alexa devices. 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