WEBVTT - Elon Musk's Fraud Trial and Ryan Cohen Best on Alibaba 0:00:13.400 --> 0:00:15.960 I'm Caroline Hyde at Broomberg's world headquarters in New York 0:00:16.400 --> 0:00:19.239 and them D Ludlow in San Francisco. This is Bloomberg 0:00:19.280 --> 0:00:23.119 Technology coming up the funding secured fraud trial. You know, 0:00:23.280 --> 0:00:26.560 Mask could lose billions in court over his infamous tweet. 0:00:26.840 --> 0:00:29.840 Jury selection is underway over an investor lawsuit after Musk 0:00:29.840 --> 0:00:32.839 claimed he had funding to take Tesla private all that 0:00:33.000 --> 0:00:37.080 five years ago. And Ryan Cohen's latest bet on Ali 0:00:37.159 --> 0:00:40.320 Barber risks a clash with Beijing. We look into his 0:00:40.400 --> 0:00:44.760 requests and investor activism in China, plus tenure and Hinge 0:00:44.880 --> 0:00:48.120 think users are willing to cough up big bucks. We're 0:00:48.120 --> 0:00:51.200 talking up to five dollars per month for an elite 0:00:51.240 --> 0:00:54.480 membership subscription on dating apps. Or we're going to have 0:00:54.560 --> 0:00:57.160 fun with that one, as you did on social media 0:00:57.200 --> 0:00:59.080 when we took a poll of your thoughts on it. 0:00:59.240 --> 0:01:01.200 But first and form, as Elon Musk said to me, 0:01:01.600 --> 0:01:04.759 what star witness and a jury trial that started tuesday 0:01:04.800 --> 0:01:07.280 in San Francisco Federal court as he mentioned, and it's 0:01:07.280 --> 0:01:10.200 over his infamous tweets just all that time ago, four 0:01:10.200 --> 0:01:12.200 and a half years ago. To be is precise about 0:01:12.200 --> 0:01:16.200 a plan staying eavy maker private with quote funding secured, 0:01:16.480 --> 0:01:19.080 who makes Peter Blumberg joins us to get us up 0:01:19.080 --> 0:01:22.920 to speed with basically who's likely to win here, Peter, 0:01:23.080 --> 0:01:25.000 because they're gonna be going out to it, and we 0:01:25.000 --> 0:01:27.920 know Elon Musk quite likes a bit of a fight. Well, 0:01:27.959 --> 0:01:30.840 he does, and it's it's really unusual for a case 0:01:30.959 --> 0:01:36.399 like this securities fraud trial brought by UH private investors 0:01:36.440 --> 0:01:40.520 as a class action too, it's unlikely to sort to 0:01:40.600 --> 0:01:42.680 go to trial in the first place. Usually they settle 0:01:42.720 --> 0:01:45.119 because there's so much money at stake, and in this 0:01:45.160 --> 0:01:47.360 case there there's billions of dollars on the line. But 0:01:47.400 --> 0:01:49.960 as you say, Musk is always up for a fight, 0:01:50.160 --> 0:01:53.520 and in this case he's had a really unusual disadvantage 0:01:53.520 --> 0:01:58.320 because the judge ruled months ago that the tweets were false, 0:01:58.800 --> 0:02:01.640 and the judge is going to tell that to the 0:02:01.760 --> 0:02:05.040 jury at the get go. There's still other things that 0:02:05.040 --> 0:02:07.560 the jury has to decide, and it could still be 0:02:07.640 --> 0:02:11.760 resolved in Musk's favor, but it's definitely a disadvantage for 0:02:11.840 --> 0:02:15.880 him going into this. I think let's talk about mechanics. 0:02:16.040 --> 0:02:17.919 I As you know, Pec, you've been my editor on 0:02:18.000 --> 0:02:20.720 more than one occasion covering these kind of blow by 0:02:20.800 --> 0:02:23.799 blow trials. But the jury's key here and so are 0:02:24.120 --> 0:02:26.880 the mechanics. So we're going through jury selection right now, 0:02:27.360 --> 0:02:31.280 and not a surprise, some of the potential jurors had 0:02:31.639 --> 0:02:34.200 issues of Elon Musk. Remember Elon must tried to move 0:02:34.240 --> 0:02:37.320 this trial away from San Francisco because he argued there 0:02:37.360 --> 0:02:39.960 was bias among the jury pool. But this isn't going 0:02:40.000 --> 0:02:42.280 to happen quickly, and Elon Musk is going to be 0:02:42.280 --> 0:02:44.720 a star witness to walk us through what happens from here. 0:02:46.000 --> 0:02:48.720 Right Well, they're they're getting close to selecting a jury, 0:02:48.880 --> 0:02:53.600 and they've been very carefully questioning the jurors about their 0:02:53.680 --> 0:02:58.480 views and whether they can commit to being fair and impartial. 0:02:58.960 --> 0:03:02.880 And of course the lawyers on both sides uh get 0:03:03.040 --> 0:03:07.760 get a chance to uh speak up and dismiss jurors 0:03:07.800 --> 0:03:13.000 that they don't feel comfortable with. But there's a feeling 0:03:13.000 --> 0:03:15.000 that they're going to reach a consensus before the end 0:03:15.000 --> 0:03:17.080 of the day and pick a jury. And then we've 0:03:17.080 --> 0:03:20.760 got about a two and a half week trial where 0:03:20.840 --> 0:03:25.920 we will hear from a variety of witnesses beyond Musk himself, 0:03:26.520 --> 0:03:30.720 including some of the high finance people who were involved 0:03:30.720 --> 0:03:33.760 in some of the behind the scenes talks about funding 0:03:33.760 --> 0:03:39.240 this transaction, as well as UH some professor types expert 0:03:39.280 --> 0:03:42.600 witnesses who are gonna talk to the jury about their 0:03:42.680 --> 0:03:47.680 theories of how the tweets may have influenced UH investors 0:03:47.760 --> 0:03:51.720 to make trades and also to talk about UH what 0:03:51.960 --> 0:03:55.840 kind of damage this did too, and bardsters and how 0:03:55.920 --> 0:03:59.560 much money they should collect. Page thank you for getting 0:03:59.600 --> 0:04:01.440 us up to feed. It's going to run for a 0:04:01.440 --> 0:04:04.720 little while. Let's think at least until every first. Meanwhile, Apple, 0:04:04.880 --> 0:04:08.360 it just rolled out it's new products. Have you spotted 0:04:08.400 --> 0:04:10.840 that ed has a new Apple products on them today? 0:04:10.840 --> 0:04:14.040 In fact, but we digress from various broken phones and 0:04:14.080 --> 0:04:16.240 we go back to the high end MacBook Pro, the 0:04:16.320 --> 0:04:18.440 laptops as well as the Mac Mini desks that they've 0:04:18.520 --> 0:04:20.960 just been announced today. Let's see what all the fuss 0:04:21.040 --> 0:04:23.040 is all about, bing legs, Mark gam and they haven't announced, 0:04:23.080 --> 0:04:24.960 but they've gone on sale. Right, Mom, What do we 0:04:25.000 --> 0:04:27.159 know about these products that you hadn't already broken in 0:04:27.200 --> 0:04:30.440 the past. Yes, So, the new MacBook Pro and the 0:04:30.440 --> 0:04:33.359 new Mac Minie those were introduced today. They're available for 0:04:33.360 --> 0:04:36.680 pre order on Apple's website and they start shipping on January, 0:04:37.560 --> 0:04:39.320 so just in about a week from now. Now these 0:04:39.320 --> 0:04:42.840 are marginal upgrades. They look identical to the previous models. 0:04:42.880 --> 0:04:46.400 The Mac Minie last rolled out in the first Mac 0:04:46.480 --> 0:04:48.720 to get the M one chip part of the transition 0:04:48.720 --> 0:04:51.280 away from Intel. The Mac Pro less updated at the 0:04:51.360 --> 0:04:54.240 end of one Now why are these so significant, Well, 0:04:54.279 --> 0:04:57.080 they introduced the new generation of Apple's chips. So the 0:04:57.120 --> 0:04:59.720 Mac Minie gets the same M two chip launched in 0:04:59.720 --> 0:05:02.000 the mat Book Air and the low end thirteen inch 0:05:02.040 --> 0:05:04.799 Maco Pro last year, but it also gets the first 0:05:05.000 --> 0:05:07.280 M two Pro chip that adds a little bit more 0:05:07.320 --> 0:05:10.360 horsepower on both the CPU and the GPU side. So 0:05:10.400 --> 0:05:13.039 the CPUs the chip that is for the main performance, 0:05:13.080 --> 0:05:15.880 the overall speed of the computer, while the GPU handles 0:05:15.960 --> 0:05:19.400 graphics and video editing and stuff of that nature. Now, 0:05:19.400 --> 0:05:21.920 the MacBook Pro also gets that same M two pro 0:05:22.040 --> 0:05:24.760 chip in the Mac Mini, but also a more advanced 0:05:24.800 --> 0:05:27.760 chip called the M to max, which essentially doubles the 0:05:27.800 --> 0:05:30.400 amount of horsepower you get on the graphics side. So 0:05:30.440 --> 0:05:34.320 that's really a high end machine for video editors, programmers, 0:05:34.440 --> 0:05:37.000 engineers and such that really need the most horse power 0:05:37.120 --> 0:05:41.160 you can get in a laptop. What Caroline was alluding 0:05:41.200 --> 0:05:43.719 to Mark is this weekend, I dropped my phone and 0:05:43.800 --> 0:05:46.400 it smashed, and now I face a choice of whether 0:05:46.520 --> 0:05:48.720 to upgrade or Wait. You and I talk about this 0:05:49.000 --> 0:05:51.680 behind closed doors all the time. Anyway, we digress. What 0:05:51.800 --> 0:05:55.480 Tim Cook alluded to in a tweet was Apple silicon right, 0:05:55.520 --> 0:05:58.520 you're just talking about it there that the emphasis Apples 0:05:58.520 --> 0:06:01.240 had not just on supply chain but controlling its I 0:06:01.360 --> 0:06:04.840 P controlling its technology. What I'm confused about is I 0:06:04.839 --> 0:06:07.880 thought that this latest gen of Mac was supposed to 0:06:07.920 --> 0:06:11.839 come out last year. Was there a delay? What happened? 0:06:12.640 --> 0:06:14.960 So there was a delay. So the M two line 0:06:15.040 --> 0:06:18.719 first started rolling out in last year. It started to 0:06:18.839 --> 0:06:21.160 launch actually at the end of July. There was a 0:06:21.200 --> 0:06:24.440 delay back then because of the manufacturing facilities in China. 0:06:24.680 --> 0:06:26.440 They all got shut down for about a month. That 0:06:26.520 --> 0:06:30.960 delayed the rollout of the MacBook Air In the MacBook probe, that, 0:06:31.040 --> 0:06:34.039 in addition to other factors regarding the chip shortage and 0:06:34.080 --> 0:06:36.960 the overall needs to allocate more manufacturing to more pressing 0:06:37.000 --> 0:06:39.880 products like the iPhones and the iPads last year and 0:06:39.880 --> 0:06:42.640 the Apple watches, meant that something had to give in 0:06:42.720 --> 0:06:45.200 what gave was this was this new map book Pro 0:06:45.279 --> 0:06:47.440 and the Mac Mini Those were originally supposed to roll 0:06:47.480 --> 0:06:52.240 out this past October. Alright, Bloomberg's Mark German always bringing 0:06:52.320 --> 0:06:55.400 us the latest headlines and gadgets from the world of Apple. 0:06:55.640 --> 0:06:58.880 Now Microsoft plans to cut jobs and a number of 0:06:58.920 --> 0:07:02.400 engineering divisions as early as Wednesday. That, according to a 0:07:02.400 --> 0:07:05.440 Bloomberg source, is unclear how many of the two hundred 0:07:05.480 --> 0:07:08.080 thousand workers will be affected, and it is the third 0:07:08.160 --> 0:07:11.320 round of layoffs since July of last year. Microsoft, which 0:07:11.360 --> 0:07:15.000 declined to comment, has also eliminated open positions and paused 0:07:15.080 --> 0:07:27.320 hirings in many departments chat GPT, and it is still 0:07:27.400 --> 0:07:29.920 in the headlines, and this time because Microsoft's putting the 0:07:29.920 --> 0:07:32.320 tool to use right this after the tech John we 0:07:32.320 --> 0:07:35.720 already know reportedly as mulling an additional ten billion dollar 0:07:35.800 --> 0:07:38.840 investment in chatch epts creator open Ai. But just get 0:07:38.920 --> 0:07:42.040 us up to speed with what Microsoft's overall plans are. Yeah, 0:07:42.080 --> 0:07:45.560 this was an interesting and curiously times blog post from 0:07:45.560 --> 0:07:47.960 the company, partly because Davos is going on and you 0:07:48.000 --> 0:07:50.360 know how things work over in Davos, but also because 0:07:50.360 --> 0:07:53.600 of how fresh that reporting was around them boosting their 0:07:53.600 --> 0:07:56.240 funding into open Ai. Right, they've already invested a billion 0:07:56.520 --> 0:07:59.200 in two thousand nineteen. But simply they're going to take 0:07:59.280 --> 0:08:03.320 open aies tools and bring them into the Azure Cloud platform. Actually, 0:08:03.320 --> 0:08:04.720 if we flip up the boards, we can get some 0:08:04.800 --> 0:08:10.000 detail on that in some limited capacity. He Since Microsoft 0:08:10.040 --> 0:08:13.000 has often offered a very small group of its Azure 0:08:13.080 --> 0:08:16.800 clients the ability to use open ai tools if they 0:08:17.120 --> 0:08:20.160 have their own tools hosted in Asual Cloud, that all 0:08:20.200 --> 0:08:22.200 sounds very niche, but frankly so we put if you're 0:08:22.200 --> 0:08:25.760 a company that hosts your own tools on the Asual 0:08:25.760 --> 0:08:28.960 Cloud platform, you have now access to use GPT three 0:08:28.960 --> 0:08:32.080 point five dally for example. And now they're making that 0:08:32.160 --> 0:08:35.400 more accessible. They're opening it up to a wide wider 0:08:35.480 --> 0:08:37.240 range of customers. Why do we care? When we were 0:08:37.280 --> 0:08:39.480 asking when that news came around about the ten billion 0:08:39.480 --> 0:08:42.719 dollar potential investment, what's in it? For Microsoft? There is 0:08:42.760 --> 0:08:45.240 a lot of emphasis on being their search engine, right, 0:08:45.280 --> 0:08:48.680 how could chat GPT in particularly improve that platform? But 0:08:48.800 --> 0:08:51.959 read Dina Basses reporting on the Bloomberg Tunel Bloomberg dot com, 0:08:52.120 --> 0:08:54.199 there are other use cases as well about how the 0:08:54.280 --> 0:08:57.840 language models and the underlying artificial intelligence could improve office 0:08:57.880 --> 0:09:01.160 for example, and teams might stuff teams as well. So 0:09:01.360 --> 0:09:03.480 it's a really interesting development that are now being a 0:09:03.559 --> 0:09:05.640 little bit more open about, although there was still a 0:09:05.640 --> 0:09:08.360 lot that they did not say in that blog post. Yeah, 0:09:08.600 --> 0:09:11.120 more questions and answers is always the way, but let's 0:09:11.120 --> 0:09:13.520 put more questions to one. Michael Dancy now his managing 0:09:13.559 --> 0:09:16.319 partner over at Compound, has a number of investments actually 0:09:16.320 --> 0:09:19.280 an AI and machine learning startups and two around million 0:09:19.320 --> 0:09:21.800 dollars in assets and the management. Michael, great to catch 0:09:21.840 --> 0:09:24.920 up with you and give us the iteration, the scale, 0:09:25.080 --> 0:09:29.480 the applications you're most excited about for something like chat 0:09:29.520 --> 0:09:33.880 GPT or generative AI. Yeah, I think for chat GPT specifically, 0:09:33.920 --> 0:09:36.120 search is probably the thing that gets everyone really excited 0:09:36.720 --> 0:09:38.960 on a first order. You can think about how existential 0:09:39.000 --> 0:09:41.320 that is to Google and how they are kind of 0:09:41.360 --> 0:09:44.200 economic model works. I think as you start to see 0:09:44.200 --> 0:09:46.800 more and more of these use cases has become more 0:09:47.280 --> 0:09:50.920 emergent and more professional already in areas that start off 0:09:50.960 --> 0:09:54.079 as needing kind of inspiration and move towards needing n 0:09:54.400 --> 0:09:57.160 percent perfection and eventually make their way all the way 0:09:57.200 --> 0:09:59.520 to kind of plus. You can think of like legal 0:09:59.559 --> 0:10:01.920 as an exam ample, um. And then in those middle 0:10:01.920 --> 0:10:05.800 areas you can think of areas like biology, material discovery, 0:10:05.920 --> 0:10:07.760 things like that, as well as a bunch of other 0:10:07.840 --> 0:10:10.760 enterprise software use cases. So we really think this is 0:10:10.800 --> 0:10:14.120 something that's interesting across a bunch of different industries and 0:10:14.120 --> 0:10:17.000 it's going to cut into a bunch of different companies 0:10:17.160 --> 0:10:20.240 kind of supposed modes over time. A lot of hype 0:10:20.720 --> 0:10:23.040 and actually a lot of handwringing around some of the 0:10:23.080 --> 0:10:27.040 ethics around it all. Michael, is that developing simultaneously with 0:10:27.080 --> 0:10:30.559 the innovation you worried about basically the rules of regulations, 0:10:31.000 --> 0:10:35.960 the steering of the road not being formed quickly enough. Um. 0:10:36.000 --> 0:10:39.319 I think with all emergent technologies, especially when they get 0:10:39.360 --> 0:10:42.400 the type of adoption that's been rampant for chat GPT, 0:10:42.880 --> 0:10:45.959 you'd see this concern around can we roll this out properly, 0:10:46.000 --> 0:10:48.440 which is ironic as Opening Eye was originally built around 0:10:48.440 --> 0:10:52.280 this idea of deploying AI in a kind of safe manner. UM. 0:10:52.520 --> 0:10:54.600 I don't worry about it as much. I think there's 0:10:54.600 --> 0:10:57.600 a lot of open questions around kind of artists attribution, 0:10:58.000 --> 0:11:01.400 around kind of fair right usage of different types of data, 0:11:01.640 --> 0:11:03.480 where if you're pulling from a different sources, a bunch 0:11:03.480 --> 0:11:06.800 of different sources. Should you need to cite those sources, 0:11:06.800 --> 0:11:10.720 but in general, I think that the value continually outstrips 0:11:10.800 --> 0:11:13.400 kind of the the downsides, and we really should focus 0:11:13.440 --> 0:11:18.839 on the the optimistic version of these technologies. What are 0:11:18.840 --> 0:11:23.959 you surprised as somebody tracking the space between the time 0:11:24.000 --> 0:11:27.080 that reports came out, Microsoft was thinking about boosting its 0:11:27.160 --> 0:11:30.280 investment in open ai and then last night when a 0:11:30.360 --> 0:11:32.800 blog post comes out talking about how they're going to 0:11:32.880 --> 0:11:37.040 incorporate the underlying technology into their own platforms. Is somebody 0:11:37.080 --> 0:11:40.560 that knows how these deals work and also what the 0:11:40.640 --> 0:11:44.640 utility is. What's your read on the news announcements. I 0:11:44.640 --> 0:11:47.680 think it's just a continual um you know. I just 0:11:47.679 --> 0:11:51.200 continually am impressed by Microsoft over years now, and I 0:11:51.200 --> 0:11:55.520 think they see the strategic asset that having these kind 0:11:55.520 --> 0:11:58.760 of foundation models and large language models implemented into their 0:11:58.760 --> 0:12:01.319 products can be and also we can allow them to 0:12:01.320 --> 0:12:04.280 potentially leap frog competitors. And I think what you're going 0:12:04.320 --> 0:12:06.719 to see is um as we all know a lot 0:12:06.720 --> 0:12:09.760 of other large companies that are figuring out what are 0:12:09.760 --> 0:12:11.719 they going to do? Google is the most notable one 0:12:11.960 --> 0:12:16.280 sideline I think they have bigger regulatory headwinds and so 0:12:16.360 --> 0:12:18.840 they are being very very careful about this. But I 0:12:18.840 --> 0:12:21.439 think all of us knew the scale of people there 0:12:21.840 --> 0:12:25.120 that care about these problems that are could have very 0:12:25.160 --> 0:12:27.360 interested in figuring out, you know, what are the ways 0:12:27.360 --> 0:12:30.320 in which we can disrupt ourselves and or disrupt our 0:12:30.320 --> 0:12:33.760 biggest competitors. And for Microsoft, it's always been about disrupting 0:12:33.760 --> 0:12:37.000 competitors and specifically doing it from the enterprise layer. And 0:12:37.000 --> 0:12:38.679 I think what we're going to see is that Microsoft's 0:12:38.679 --> 0:12:41.360 ambitions are going to continue to expand far outside of 0:12:41.480 --> 0:12:43.839 just enterprise software, and I think that's where people should 0:12:44.080 --> 0:12:48.000 be maybe less surprised over the next twenty four months. Michael, 0:12:48.040 --> 0:12:51.400 I'm assuming there are some parallels between the experience you're 0:12:51.440 --> 0:12:53.520 having at the moment, particularly in your inbox and mining 0:12:53.559 --> 0:12:57.240 Carolines that since this story took off, you know, lots 0:12:57.240 --> 0:13:00.440 of emails come across about startops were king in the 0:13:00.480 --> 0:13:03.920 field of AI. It's hard to discern and distinguish the 0:13:04.240 --> 0:13:07.240 sort of those players that have genuine promise, those that 0:13:07.440 --> 0:13:09.640 have something unique about them, that have a you know, 0:13:09.679 --> 0:13:12.800 a strong underlying technology or i P. Is that your 0:13:12.840 --> 0:13:17.040 experience so you're getting pitches, you people seeking investment from you, 0:13:17.440 --> 0:13:19.400 and you're saying, God, I don't know what is real 0:13:19.480 --> 0:13:22.240 in the world of AI and what's not. Yeah, someone 0:13:22.280 --> 0:13:24.040 who has spent you know, the better part of the 0:13:24.040 --> 0:13:26.559 eight years and AI and also in similar time, my 0:13:26.640 --> 0:13:29.679 time in crypto from I'm used to these kind of 0:13:29.720 --> 0:13:33.160 hype cycles and people adding burbiage, whether it's Web three 0:13:33.280 --> 0:13:36.800 or now AI to their UM, you know, to their pitch. 0:13:37.200 --> 0:13:39.280 I think that you have to kind of understand what 0:13:39.320 --> 0:13:44.040 are the core special skills or special sources of these 0:13:44.040 --> 0:13:47.760 founders and entrepreneurs. Are they products centric? Are they technology centric? 0:13:48.040 --> 0:13:51.040 Are they distribution centric? And I think really most of 0:13:51.040 --> 0:13:53.360 these teams are not technology centric and kind of you're 0:13:53.360 --> 0:13:56.760 not at the bleeding edge of machine learning artificial intelligence. 0:13:56.960 --> 0:13:58.360 And if you're not there, then you have to be 0:13:58.440 --> 0:14:00.480 elite on the product side. And so I think what 0:14:00.480 --> 0:14:03.000 we're gonna see is both a lot of people that 0:14:03.200 --> 0:14:05.800 pitch AI and never even get there, but also much 0:14:05.840 --> 0:14:07.959 people that integrate you know, Opening Eye, a p I 0:14:08.080 --> 0:14:10.840 S or other types of companies APIs and build products 0:14:10.880 --> 0:14:14.000 that UM take up quite quickly, but are kind of 0:14:14.000 --> 0:14:16.679 suffering from death by a thousand cuts are suffering by 0:14:16.800 --> 0:14:19.800 having no real modes in these businesses. I think, is 0:14:19.880 --> 0:14:22.080 you brought up Google and I think back to a 0:14:22.200 --> 0:14:25.960 UK startup, deep Mind, that it first purchased, and the 0:14:26.000 --> 0:14:29.160 focus that the UK had in artificial intelligence. Where in 0:14:29.200 --> 0:14:30.960 the world are these companies getting built at the moment, 0:14:30.960 --> 0:14:32.680 Because we seem to be very US centric about it 0:14:32.680 --> 0:14:35.320 at this moment in time, I actually think the UK 0:14:35.480 --> 0:14:37.720 is one of the most interesting places in the world 0:14:37.760 --> 0:14:40.240 for artificial intelligence today. I think it's the U S. 0:14:40.280 --> 0:14:43.920 It's Canada and Toronto Waterloo and the UK um and 0:14:44.000 --> 0:14:47.120 Europe has a few other disparate areas, but the concentration 0:14:47.120 --> 0:14:49.440 of talent in those places is pretty obvious. And I 0:14:49.480 --> 0:14:52.400 think the best part really for the UK specifically, were 0:14:52.400 --> 0:14:54.320 investors in a company called wave Ai, which is a 0:14:54.320 --> 0:14:57.080 self driving company using a very advanced type of machine 0:14:57.160 --> 0:14:59.280 learning to get their cards to drive themselves. What we're 0:14:59.280 --> 0:15:02.240 seeing now, how is a kind of renaissance of news 0:15:02.280 --> 0:15:05.480 machine learning researchers no longer wanting to be in research 0:15:05.680 --> 0:15:07.800 or academic settings, and so I think a lot of 0:15:07.840 --> 0:15:11.080 people in Europe, specifically in London specifically, we're in deep 0:15:11.120 --> 0:15:13.520 Mind kind of really enjoying publishing these amazing paper as, 0:15:13.560 --> 0:15:15.680 whether as Alpha Fold or a bunch of others. And 0:15:15.720 --> 0:15:18.680 now they're seeing chat GPT hit five million people on 0:15:18.720 --> 0:15:21.200 a couple of days, and we're saying, you know, it's 0:15:21.240 --> 0:15:24.480 it's been cool sitting around and working on technology for years, 0:15:24.520 --> 0:15:29.120 but it's time to go and build alright. Michael Densi, 0:15:29.200 --> 0:15:32.800 managing partner Compound, trying to discern what has promised what 0:15:32.880 --> 0:15:35.600 does not in the world of AI. Now coming up, 0:15:35.640 --> 0:15:39.640 the energy crisis in Europe, the potential recession in the US. 0:15:39.800 --> 0:15:42.360 Is there still some light at the end of the tunnel? 0:15:42.400 --> 0:15:45.240 Ib and Vice chairman Gary Cone seems to think so. 0:15:45.560 --> 0:15:58.320 More in that next, this is Bloomberg over in Davos, 0:15:58.360 --> 0:16:00.680 where the World Economic Forum is on the way. Some 0:16:00.760 --> 0:16:04.480 tech leaders are actually optimistic about the economy. IBM's vice 0:16:04.560 --> 0:16:07.880 chairman Gary Cone, for example, suppose to Bloomberg's David Weston 0:16:07.960 --> 0:16:10.720 about that and the energy crisis over in Europe, have 0:16:10.800 --> 0:16:14.600 a listen. I thought that the risk to Germany was 0:16:14.640 --> 0:16:17.360 really the energy situation going into the winter, to the 0:16:17.400 --> 0:16:20.080 extent that we had a very cold winter and they 0:16:20.120 --> 0:16:23.320 had to start rationing energy and they had to cut 0:16:23.320 --> 0:16:27.400 back industrial Germany to keep people warm. I felt that 0:16:27.400 --> 0:16:30.640 that was a really tough situation. Potentially, we're now deep 0:16:30.720 --> 0:16:32.200 enough into the winter and we sort of know where 0:16:32.200 --> 0:16:34.640 we are, we know what's in reserve and storage. I 0:16:34.640 --> 0:16:36.400 think Germany is going to get through the winter very 0:16:36.440 --> 0:16:38.920 fairly easily with energy and I think they're going to 0:16:38.960 --> 0:16:41.080 continue to power through this. So I'm in agreement with 0:16:41.120 --> 0:16:43.200 the Chancellor. The biggest economy in Europe. Does I say 0:16:43.200 --> 0:16:46.120 about Europe in general? Every recession in Europe, Well, I 0:16:46.120 --> 0:16:48.120 think Europe is going to model through this. The UK 0:16:48.760 --> 0:16:51.640 not as clear, but it's it's it's it's not gonna 0:16:51.640 --> 0:16:53.640 be easy. You know, We've still got pretty pretty high 0:16:53.680 --> 0:16:56.640 inflation in Europe. It's it's it's a difficult situation. You know, 0:16:56.920 --> 0:16:58.840 in the United States, when we raise interest rates and 0:16:59.240 --> 0:17:01.560 we can all handle it that the interest rate picture 0:17:01.680 --> 0:17:04.720 in Europe, the leaguard has to deal with this is 0:17:04.720 --> 0:17:07.400 a little bit different. You know, Germany can handle higher 0:17:07.400 --> 0:17:10.520 interest rates as you start raising interest rates, Southern Europe 0:17:10.520 --> 0:17:12.760 has a lot more difficulty with the reality of what's 0:17:12.760 --> 0:17:15.159 going on. You're director of the National Economic Council, so 0:17:15.359 --> 0:17:17.399 you followed the US aunty pretty closely, But about the 0:17:17.440 --> 0:17:19.400 United States, what are the chances of hercession? I talked 0:17:19.480 --> 0:17:22.200 earlier today with Jane Fraser City she thinks second half, 0:17:22.320 --> 0:17:24.600 it's quite possible. You know, it's interesting. We've been around 0:17:24.640 --> 0:17:27.080 Davos and everyone here is negative. So the first of 0:17:27.080 --> 0:17:30.000 all that that tells me we should be positive. But 0:17:30.640 --> 0:17:32.320 you know, is it a dinner last night with a 0:17:32.359 --> 0:17:34.639 lot a lot of CEOs, global CEOs, and you know, 0:17:34.680 --> 0:17:36.640 most of them raised their hands. They're pretty negative about 0:17:36.640 --> 0:17:39.040 the economy. Then when they talked about their business, they 0:17:39.080 --> 0:17:41.120 were all pretty positive about their business. So I think 0:17:41.160 --> 0:17:44.840 everyone thinks everyone else has a problem. My my opinion 0:17:44.920 --> 0:17:48.040 is I'm pretty optimistic. That doesn't mean we're having a 0:17:48.119 --> 0:17:51.159 bullish economy. What I'm optimistic about is I think we 0:17:51.160 --> 0:17:53.760 can muddle through where we are. I think the Feds 0:17:53.800 --> 0:17:56.480 getting to the end of their tightening cycle. We may 0:17:56.520 --> 0:17:59.600 have a couple more twenty five basis point increases from 0:17:59.600 --> 0:18:02.240 the Fed. We top out around five percent in FED 0:18:02.320 --> 0:18:05.160 funds here. But I think we've all factored that factor 0:18:05.240 --> 0:18:07.600 that into the situation, and I feel like we're in 0:18:07.600 --> 0:18:11.560 a relatively good situation. The consumer is okay, they're not great, 0:18:11.600 --> 0:18:14.520 We're starting to see a few cracks. Um, the economy 0:18:14.680 --> 0:18:16.639 is slowing down. But I think we're going to model 0:18:16.680 --> 0:18:20.680 through modeling through the IBMS Vice chair Gary Cone over 0:18:20.680 --> 0:18:23.520 there in Davos. Meanwhile, let's talk about crypto for a moment, 0:18:23.520 --> 0:18:26.119 because shares of the bank silver Gate, they spike today 0:18:26.160 --> 0:18:29.080 as an outline steps like shutting assets to whether the 0:18:29.160 --> 0:18:31.560 ft X collapse. That's off the posting in one million 0:18:31.640 --> 0:18:34.320 loss earlier this month. Remember look, Silvergate is a lending 0:18:34.359 --> 0:18:37.000 focused on digital asset industry what large, and it's trying 0:18:37.000 --> 0:18:39.160 to navigate the fallout from f t X, which pronto 0:18:39.200 --> 0:18:41.720 clients to draw down more than seven billion dollars in deposits. 0:18:41.720 --> 0:18:43.720 The company has said it's got four point six billion 0:18:43.960 --> 0:18:54.280 in cash on hand. Welcome back to blom Bow Technology. 0:18:54.280 --> 0:18:56.959 I'm Caroline Hyde in New York and I'm Ed Ludlow 0:18:57.080 --> 0:19:00.440 in San Francisco now. And it's a pretty air case 0:19:00.480 --> 0:19:04.880 actually of an activist targeting if I'm in a Chinese company. Now, 0:19:04.920 --> 0:19:08.600 his mean stock investor who actually means stock royalty, Ryan Cohen, 0:19:08.840 --> 0:19:10.960 He's taking a state get this in Ali Baba, and 0:19:10.960 --> 0:19:13.120 he wants the e commerce giant to buy back more 0:19:13.160 --> 0:19:16.240 shares Funnily enough, if I could put Cohen maybe even 0:19:16.240 --> 0:19:19.359 at allders with China's own president, Sheinping, whose administration has 0:19:19.440 --> 0:19:21.239 kind of wiped out growth at Ali Baba and other 0:19:21.240 --> 0:19:23.720 big tech companies. But it's a returning of the guard. 0:19:23.960 --> 0:19:26.720 Promose Yuhuan Chan is with us who's been reporting on this, 0:19:26.800 --> 0:19:30.240 and and actually first and foremost we know his power 0:19:30.280 --> 0:19:32.480 over game Stop, over bed Bath and beyond, but he 0:19:32.480 --> 0:19:34.480 hasn't had much power over the share price movement of 0:19:34.480 --> 0:19:37.800 Ali Baba on the day. Yeah, it's interesting because if 0:19:37.800 --> 0:19:40.480 you'll look at the share at the store market reaction, 0:19:40.680 --> 0:19:43.439 Ali Baba is actually down around one point six percent 0:19:43.520 --> 0:19:45.720 alongways all the Chinese A d R stocks during the 0:19:45.840 --> 0:19:49.160 U S session. It only managed to go up slightly 0:19:49.640 --> 0:19:52.120 overnight in Hong Kong when the news initial accoun out. 0:19:52.359 --> 0:19:55.200 So it's very different from the huge rally we saw 0:19:55.240 --> 0:19:58.080 in the mean stock rail where he cuts on. So 0:19:58.200 --> 0:20:01.600 I think it appoints to something about the bigger questions 0:20:01.720 --> 0:20:04.919 I'm hearing from invester. Is there question is because this 0:20:05.040 --> 0:20:08.480 is a Chinese company, and ask for an activist, how 0:20:08.600 --> 0:20:12.160 much real impact and the influence he could have on 0:20:12.200 --> 0:20:15.879 the board, because you know, First, his steak is pretty 0:20:15.920 --> 0:20:18.840 small thinking about Olive blah blah as this huge tech 0:20:18.880 --> 0:20:22.080 giant of more than three hundred billion market cab in 0:20:22.119 --> 0:20:25.640 his stake his positions like hundreds of millions. So that's 0:20:25.720 --> 0:20:29.280 limited power, right. And also I think what's tricky and 0:20:29.359 --> 0:20:33.640 more interesting is Beijing's perspective is Beijing is taking off 0:20:33.640 --> 0:20:37.320 this so called golden shears. So it's a minority stake, 0:20:37.440 --> 0:20:40.879 but well allowed the Chinese government um to you know, 0:20:41.040 --> 0:20:45.119 have the rights or the control over or influence on 0:20:45.160 --> 0:20:49.840 the board or sway in important decisions. So from that perspective, 0:20:50.200 --> 0:20:54.119 you know, the activists voice could ultimately be undermined, you know, 0:20:54.240 --> 0:20:57.400 if they are at odds right. And so I think 0:20:57.440 --> 0:21:00.760 that also points to the overall background is vary. We're 0:21:00.960 --> 0:21:04.600 in China, you see a real activists to push just 0:21:04.720 --> 0:21:06.960