1 00:00:02,480 --> 00:00:03,040 Speaker 1: Good morning. 2 00:00:03,080 --> 00:00:05,920 Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the 3 00:00:05,960 --> 00:00:07,440 Speaker 2: stories we're following today. 4 00:00:07,800 --> 00:00:11,560 Speaker 3: Karen, we begin with the controversy surrounding open Ai. A 5 00:00:11,640 --> 00:00:15,040 Speaker 3: day after the founder, Sam Altman left for Microsoft, the 6 00:00:15,080 --> 00:00:18,880 Speaker 3: firm says it is in quote intense discussions to unify 7 00:00:18,960 --> 00:00:22,240 Speaker 3: the company. In an internal memo reviewed by Bloomberg News, 8 00:00:22,320 --> 00:00:26,239 Speaker 3: Vice president of Global Affairs, Anna Macanju says open Ai 9 00:00:26,360 --> 00:00:29,720 Speaker 3: management is also in touch with Aldman. In an interview 10 00:00:29,720 --> 00:00:33,480 Speaker 3: with Bloomberg News, Microsoft CEO Satia Nadella signaled he would 11 00:00:33,479 --> 00:00:35,560 Speaker 3: be open to Aldman going back to open ai. 12 00:00:36,120 --> 00:00:39,080 Speaker 4: We really want to partner with open ai, and we 13 00:00:39,120 --> 00:00:41,120 Speaker 4: want to partner with Sam. And so you respect to 14 00:00:41,240 --> 00:00:44,559 Speaker 4: where Sam is. He's working with Microsoft, and that is 15 00:00:44,640 --> 00:00:47,680 Speaker 4: the case on Friday, and that'll be that's the case today, 16 00:00:48,080 --> 00:00:50,960 Speaker 4: and we will I absolutely believe that'll be the case tomorrow. 17 00:00:51,159 --> 00:00:54,240 Speaker 3: Microsoft CEO Satia Nadella says, no matter what happens, open 18 00:00:54,240 --> 00:00:58,400 Speaker 3: ai needs governance changes. Microsoft shares closed at a record 19 00:00:58,480 --> 00:00:59,240 Speaker 3: high yesterday. 20 00:01:00,200 --> 00:01:03,320 Speaker 2: Nearly all of open AI's employees threatened to quit and 21 00:01:03,360 --> 00:01:07,000 Speaker 2: follow Altman to Microsoft unless the current board resign. Gene 22 00:01:07,040 --> 00:01:10,520 Speaker 2: Munster managing partner at deep Water Asset Management thinks Altman 23 00:01:10,600 --> 00:01:12,240 Speaker 2: will land back at open AI. 24 00:01:12,560 --> 00:01:16,240 Speaker 5: The board's going to be gone. So when if Altman 25 00:01:16,319 --> 00:01:18,120 Speaker 5: goes back, by the way, that is my prediction what 26 00:01:18,200 --> 00:01:20,000 Speaker 5: happens here. I think he's actually going to return to 27 00:01:20,040 --> 00:01:23,080 Speaker 5: open AI. If he goes back to open AI, they're 28 00:01:23,080 --> 00:01:25,560 Speaker 5: going to be more aggressive at opening these models up. 29 00:01:26,040 --> 00:01:28,360 Speaker 5: And if he stays with Microsoft, they're going to be 30 00:01:28,400 --> 00:01:30,840 Speaker 5: more aggressive. And I think at the end of the day, 31 00:01:30,840 --> 00:01:34,400 Speaker 5: you're probably going to see faster adoption of AI features. 32 00:01:34,920 --> 00:01:36,760 Speaker 5: It's been coming at a neck break speed, but I 33 00:01:36,760 --> 00:01:38,839 Speaker 5: think it's going to be even faster based on everything 34 00:01:38,840 --> 00:01:41,680 Speaker 5: that's happened here. This is really allowing Altman to take 35 00:01:41,680 --> 00:01:43,800 Speaker 5: his gloves off and probably do what he's wanted to 36 00:01:43,800 --> 00:01:45,240 Speaker 5: do for the last eight years. 37 00:01:45,240 --> 00:01:49,040 Speaker 2: And that's deep Water Asset Management's Gene Munster speaking to Bloomberg. 38 00:01:49,320 --> 00:01:51,200 Speaker 3: Now, let's get to the latest from the Middle East. 39 00:01:51,280 --> 00:01:53,920 Speaker 3: The leader of Hamas Ismail Hania says his group is 40 00:01:54,000 --> 00:01:57,200 Speaker 3: close to reaching a truce agreement with Israel through talks 41 00:01:57,240 --> 00:02:00,520 Speaker 3: mediated by contract President Biden has said both sides are 42 00:02:00,520 --> 00:02:02,400 Speaker 3: near a deal to free some of the two hundred 43 00:02:02,400 --> 00:02:05,280 Speaker 3: and forty hostages Hamas seized in the October seventh attack. 44 00:02:05,560 --> 00:02:08,480 Speaker 3: White House National Security spokesman John Kirby says there would 45 00:02:08,520 --> 00:02:10,520 Speaker 3: need to be a pause in the fighting if. 46 00:02:10,440 --> 00:02:12,880 Speaker 6: You're going to secure the release of hostages, and we 47 00:02:12,919 --> 00:02:14,920 Speaker 6: certainly hope we're going to be able to do that soon. 48 00:02:15,560 --> 00:02:17,120 Speaker 7: You got to make sure they can get from. 49 00:02:16,960 --> 00:02:20,919 Speaker 6: Where they are to safety and do that as safely 50 00:02:20,960 --> 00:02:22,840 Speaker 6: as possible, which means you're going to have to have 51 00:02:22,960 --> 00:02:25,840 Speaker 6: at least a temporary, localized stop in the fighting. 52 00:02:26,120 --> 00:02:28,680 Speaker 3: White House spokesman John Kirby says it's been difficult getting 53 00:02:28,720 --> 00:02:33,120 Speaker 3: information on the hostages because Hamas has control of that access. Meantime, 54 00:02:33,160 --> 00:02:36,080 Speaker 3: Israeli forces continue to engage in heavy fighting in the 55 00:02:36,080 --> 00:02:38,720 Speaker 3: Northern Gaza Strip. Israel's taking control of much of the 56 00:02:38,720 --> 00:02:42,000 Speaker 3: Alshifa Hospital, which it says Hamas used as a command 57 00:02:42,000 --> 00:02:42,960 Speaker 3: and control center. 58 00:02:43,400 --> 00:02:45,840 Speaker 2: Well Nathan, the White House is open accounts on Meta's 59 00:02:45,840 --> 00:02:50,040 Speaker 2: social media platform as threads for the President and Vice President, 60 00:02:50,080 --> 00:02:52,320 Speaker 2: and Bloomberg said Baxter has the details. 61 00:02:52,639 --> 00:02:54,520 Speaker 8: The White House says it's just another way to meet 62 00:02:54,560 --> 00:02:57,320 Speaker 8: people where they are. It says it's been using different 63 00:02:57,360 --> 00:03:00,519 Speaker 8: forms of media since the beginning of the administration, and 64 00:03:00,680 --> 00:03:03,000 Speaker 8: this has been in motion for several weeks now, but 65 00:03:03,440 --> 00:03:05,880 Speaker 8: the timing does come in the wake of Elon Musk's 66 00:03:05,919 --> 00:03:09,520 Speaker 8: endorsement of antisemitic content, and according to sources, the White 67 00:03:09,560 --> 00:03:12,960 Speaker 8: House is not considering ending its use of ex accounts 68 00:03:12,960 --> 00:03:15,840 Speaker 8: because of that, although they do say the Musk post 69 00:03:16,000 --> 00:03:20,480 Speaker 8: angered Biden and his aides Ed Baxter Bloomberg Radio OK, 70 00:03:20,880 --> 00:03:21,280 Speaker 8: thank you. 71 00:03:21,400 --> 00:03:24,920 Speaker 3: A new front's opening in the US China chip conflict. 72 00:03:25,280 --> 00:03:28,080 Speaker 3: President Biden is shifting focus to an emerging area of 73 00:03:28,120 --> 00:03:33,200 Speaker 3: the contest for technological supremacy, the process of packaging semiconductors 74 00:03:33,240 --> 00:03:36,680 Speaker 3: that has increasingly seen as a path to achieving higher performance. 75 00:03:36,960 --> 00:03:39,480 Speaker 3: The US isn't alone though, in recognizing the potential of 76 00:03:39,560 --> 00:03:43,080 Speaker 3: so called advanced packaging. China too is capitalizing on an 77 00:03:43,120 --> 00:03:46,640 Speaker 3: area that is not subject to sanctions, capturing global market 78 00:03:46,680 --> 00:03:50,000 Speaker 3: share and achieving progress that it was denied in manufacturing 79 00:03:50,080 --> 00:03:51,280 Speaker 3: high end chips. 80 00:03:51,400 --> 00:03:52,440 Speaker 7: Well staying with ships. 81 00:03:52,520 --> 00:03:56,320 Speaker 2: Nathan Nvidia reports earnings after the bill. The high flying 82 00:03:56,360 --> 00:03:59,120 Speaker 2: semiconductor stock is up two hundred and forty five percent 83 00:03:59,200 --> 00:04:03,600 Speaker 2: so far this year year. Mandy Singh, senior technology analysts 84 00:04:03,600 --> 00:04:06,119 Speaker 2: for Bloomberg's and Video shares closed at an all time 85 00:04:06,200 --> 00:04:07,560 Speaker 2: high yesterday. 86 00:04:07,360 --> 00:04:10,400 Speaker 3: And Karen was staying on the earnings front. Zoom reported 87 00:04:10,440 --> 00:04:14,280 Speaker 3: better than expected revenue on strong enterprise sales. The company 88 00:04:14,320 --> 00:04:18,159 Speaker 3: who signature video software became the essential communications tool for 89 00:04:18,560 --> 00:04:21,640 Speaker 3: home bound Americans during the pandemic, has now turned its 90 00:04:21,680 --> 00:04:24,400 Speaker 3: focus to business customers, as Zoom has added features for 91 00:04:24,440 --> 00:04:27,479 Speaker 3: those clients, including word processing, and stepped up the use 92 00:04:27,520 --> 00:04:31,840 Speaker 3: of artificial intelligence to buttress its main video conferencing service. 93 00:04:32,360 --> 00:04:35,320 Speaker 2: Nathan Investors also have their eyes on US treasuries, wondering 94 00:04:35,320 --> 00:04:37,840 Speaker 2: if the world's deepest dead market will suffer a third 95 00:04:37,880 --> 00:04:39,960 Speaker 2: straight year of losses, and we get more in this 96 00:04:40,080 --> 00:04:43,440 Speaker 2: live report from Bloomberg's John Tucker. John, Good morning, Karen. 97 00:04:43,600 --> 00:04:46,760 Speaker 9: Investors who anticipated twenty twenty three would be the year 98 00:04:46,880 --> 00:04:49,839 Speaker 9: of the bond were instead hit by waves of turmoil, 99 00:04:50,080 --> 00:04:52,679 Speaker 9: but the year may have a happy ending, as treasury 100 00:04:52,800 --> 00:04:55,440 Speaker 9: sore this month, traders now bet the Fed is done 101 00:04:55,520 --> 00:04:58,159 Speaker 9: with hiking interest rates and in fact will cut rates 102 00:04:58,160 --> 00:05:00,480 Speaker 9: of the first half of next year. You hope that 103 00:05:00,520 --> 00:05:03,920 Speaker 9: happy narrative gets support when the Fed today releases minutes 104 00:05:03,960 --> 00:05:07,280 Speaker 9: of its last policy meeting. The surgeon bond price has 105 00:05:07,320 --> 00:05:10,480 Speaker 9: also got a green light to continue yesterday after an 106 00:05:10,520 --> 00:05:13,800 Speaker 9: auction of twenty year debt went off without a hitch. 107 00:05:14,360 --> 00:05:17,120 Speaker 9: US treasuries have gained two point six percent this month 108 00:05:17,120 --> 00:05:19,800 Speaker 9: through Friday, cutting the loss for the year to merely 109 00:05:19,920 --> 00:05:22,920 Speaker 9: two tenths of a percent, according to data compiled by 110 00:05:22,960 --> 00:05:25,480 Speaker 9: Bloomberg John Tucker Bloomberg Radio. 111 00:05:25,360 --> 00:05:27,520 Speaker 3: All right, John, thank you. Finally, as we approach the 112 00:05:27,560 --> 00:05:31,640 Speaker 3: Thanksgiving holiday, Black Friday and Cyber Monday, spending are projected 113 00:05:31,680 --> 00:05:34,919 Speaker 3: to hit new highs. Consumers plan to spend an average 114 00:05:34,960 --> 00:05:37,479 Speaker 3: of five hundred and sixty seven dollars during those two 115 00:05:37,480 --> 00:05:40,120 Speaker 3: shopping events. That would be a thirteen percent increase from 116 00:05:40,200 --> 00:05:43,640 Speaker 3: last year. That result is a record for Deloitte's annual 117 00:05:43,680 --> 00:05:47,479 Speaker 3: Black Friday Cyber Monday survey. About eighty four percent of 118 00:05:47,520 --> 00:05:49,760 Speaker 3: shoppers say they feel confident enough to stick with the 119 00:05:49,760 --> 00:05:52,880 Speaker 3: budgets they set in September four and ten say they 120 00:05:52,880 --> 00:05:58,200 Speaker 3: will finish their holiday shopping during this long holiday weekend, 121 00:05:58,960 --> 00:06:01,400 Speaker 3: futures pointing to a month honestly hire open this morning 122 00:06:01,400 --> 00:06:03,560 Speaker 3: on Wall Street. This is Bloomberg. 123 00:06:06,440 --> 00:06:07,080 Speaker 7: Sor Ry Nathan. 124 00:06:07,120 --> 00:06:07,320 Speaker 9: Thanks. 125 00:06:07,360 --> 00:06:08,680 Speaker 2: It's time now for a look at some of the 126 00:06:08,680 --> 00:06:11,040 Speaker 2: other stories making news around the world. For that were 127 00:06:11,080 --> 00:06:13,919 Speaker 2: joined by Bloomberg's Amy Morris Amy, Good Morning. 128 00:06:14,040 --> 00:06:14,960 Speaker 7: Good morning, Karen. 129 00:06:15,000 --> 00:06:18,320 Speaker 10: Police in Ohio see a shooter opened fire at a Walmart, 130 00:06:18,640 --> 00:06:21,960 Speaker 10: wounding four people before apparently killing himself. The attack took 131 00:06:21,960 --> 00:06:24,520 Speaker 10: place last night out of Walmart and Beaver Creek in 132 00:06:24,560 --> 00:06:28,560 Speaker 10: the Dayton metropolitan area. Beaver Creek Police Captain Scott Molnar 133 00:06:28,680 --> 00:06:32,000 Speaker 10: says the four victims are currently being treated for their injuries. 134 00:06:32,080 --> 00:06:33,359 Speaker 7: Centured four victims. 135 00:06:34,040 --> 00:06:37,200 Speaker 11: The conditions of the victims right now is unknown, as they. 136 00:06:37,080 --> 00:06:40,200 Speaker 2: Were all transported to area hospitals for treatment. 137 00:06:40,360 --> 00:06:42,680 Speaker 10: Police did not immediately release the name of the gunman 138 00:06:42,800 --> 00:06:45,960 Speaker 10: or a possible motive for the attack. Meanwhile, in Colorado, 139 00:06:46,040 --> 00:06:48,520 Speaker 10: another mass shooting, police say three people are dead and 140 00:06:48,560 --> 00:06:51,760 Speaker 10: fourth is in critical condition after a gunman opened fire 141 00:06:51,800 --> 00:06:52,680 Speaker 10: in Custer County. 142 00:06:52,920 --> 00:06:54,640 Speaker 7: Police say that gunman is on the run. 143 00:06:54,680 --> 00:06:56,720 Speaker 10: They believe he was in a civil dispute with one 144 00:06:56,720 --> 00:06:59,960 Speaker 10: of the victims over property lines. Donald Trump's gag order 145 00:07:00,000 --> 00:07:03,040 Speaker 10: our hearing is over a panel of three federal appeals 146 00:07:03,040 --> 00:07:06,240 Speaker 10: witnesses appeared reluctant to give Trump a green light to 147 00:07:06,279 --> 00:07:10,160 Speaker 10: resume public attacks on witnesses, prosecutors, and court staff, but 148 00:07:10,240 --> 00:07:12,480 Speaker 10: they did signal that they would be open to narrowing 149 00:07:12,520 --> 00:07:16,000 Speaker 10: the scope of the gag order. Judge Patricia Millett. 150 00:07:16,000 --> 00:07:19,040 Speaker 12: We certainly want to make sure that the criminal trial 151 00:07:19,120 --> 00:07:24,880 Speaker 12: process and its integrity as truth finding function are protected. 152 00:07:27,680 --> 00:07:32,440 Speaker 12: Use a careful scalpel here and not step into really 153 00:07:33,040 --> 00:07:35,840 Speaker 12: sort of skewing in the political arena, don't we. 154 00:07:36,240 --> 00:07:38,600 Speaker 10: The DC Circuit put the case on a fast track 155 00:07:38,720 --> 00:07:41,160 Speaker 10: rather than a typical appeal, but did not say when 156 00:07:41,160 --> 00:07:44,040 Speaker 10: it plans to rule. Trump's lawyers have already said they'll 157 00:07:44,080 --> 00:07:46,480 Speaker 10: ask the Supreme Court to intervene if the Appeals Court 158 00:07:46,520 --> 00:07:50,160 Speaker 10: doesn't lift the full order. Thanksgivings just two days away, 159 00:07:50,200 --> 00:07:53,800 Speaker 10: but the travel rush is already underway by road, railer, runway. 160 00:07:54,200 --> 00:07:58,000 Speaker 10: Millions of Americans are traveling this week. TSA expects this 161 00:07:58,040 --> 00:08:00,400 Speaker 10: to be one of the busiest travel periods of the year. 162 00:08:00,960 --> 00:08:04,480 Speaker 10: This traveler, flying out of the Oakland International Airport refuses 163 00:08:04,520 --> 00:08:06,760 Speaker 10: to lose her cool if things go awry. 164 00:08:06,960 --> 00:08:09,040 Speaker 7: I imagine there'll be a few, But how does your 165 00:08:09,080 --> 00:08:09,520 Speaker 7: roll with it? 166 00:08:09,520 --> 00:08:12,240 Speaker 10: Triple A says Today and tomorrow our peak travel windows, 167 00:08:12,240 --> 00:08:15,320 Speaker 10: when nearly five million people will pass through airports, a 168 00:08:15,440 --> 00:08:19,040 Speaker 10: million people will ride the rails, and fifty million Americans 169 00:08:19,040 --> 00:08:21,880 Speaker 10: will be on the highway global news twenty four hours 170 00:08:21,880 --> 00:08:24,239 Speaker 10: a day and whenever you want it with Bloomberg News Now. 171 00:08:24,400 --> 00:08:26,720 Speaker 10: I'm Amy Morrison. This is Bloomberg Karen. 172 00:08:27,120 --> 00:08:29,000 Speaker 2: All right, Amy, thank you what we do bring you 173 00:08:29,080 --> 00:08:32,240 Speaker 2: news throughout the day right here on Bloomberg Radio. But 174 00:08:32,280 --> 00:08:34,360 Speaker 2: as you heard Amy say, now, you can get the 175 00:08:34,440 --> 00:08:38,760 Speaker 2: latest news on demand whenever you want it. Just subscribe 176 00:08:38,800 --> 00:08:41,839 Speaker 2: to Bloomberg News Now to get the latest headlines at 177 00:08:41,880 --> 00:08:45,119 Speaker 2: the click of a button. Get informed on your schedule. 178 00:08:45,240 --> 00:08:48,840 Speaker 2: You can listen and subscribe to Bloomberg News Now on 179 00:08:48,920 --> 00:08:53,199 Speaker 2: the Bloomberg Business app, Bloomberg dot com, plus Apple, Spotify, 180 00:08:53,400 --> 00:09:01,440 Speaker 2: and anywhere else you get your podcasts at his time. 181 00:09:01,480 --> 00:09:04,840 Speaker 2: Now for the Bloomberg Sports Update, here's John stash Hour, 182 00:09:05,000 --> 00:09:06,000 Speaker 2: John Karen. 183 00:09:06,040 --> 00:09:09,840 Speaker 11: Philadelphia Eagles coach Nick Sirianni admits the previous game between 184 00:09:09,840 --> 00:09:12,720 Speaker 11: his team and the Kansas City Chiefs a little bit 185 00:09:12,760 --> 00:09:15,640 Speaker 11: more important. That was last February Super Bowl won by 186 00:09:15,720 --> 00:09:18,360 Speaker 11: k C. But the Eagles did get some revenge and 187 00:09:18,400 --> 00:09:20,640 Speaker 11: a Monday night or at Arrowhead Stadium, winning twenty one 188 00:09:20,720 --> 00:09:24,080 Speaker 11: to seventeen. They trailed seventeen to seven at halftime. Jalen 189 00:09:24,120 --> 00:09:26,040 Speaker 11: Hurts scored a touchdown on the third quarter and then 190 00:09:26,080 --> 00:09:29,280 Speaker 11: the go ahead TV on a quarterback sneak cappin in 191 00:09:29,360 --> 00:09:31,800 Speaker 11: eighty yar drive. With six point twenty remain the Eagles 192 00:09:31,800 --> 00:09:34,080 Speaker 11: are nine to one to the first team since the 193 00:09:34,080 --> 00:09:36,199 Speaker 11: Colts in two thousand and five and six to start 194 00:09:36,240 --> 00:09:39,520 Speaker 11: consecutive seasons with that good of a record. Quarterback change 195 00:09:39,520 --> 00:09:42,280 Speaker 11: in New York no surprise the Jets benching the struggling 196 00:09:42,360 --> 00:09:45,439 Speaker 11: Zach Wilson, turning to Tim Boyle, who's only made three 197 00:09:45,559 --> 00:09:47,880 Speaker 11: NFL starts and has never won a game. Joe Flacco 198 00:09:48,360 --> 00:09:51,600 Speaker 11: signing with the Cleveland Browns, although the Browns will keep 199 00:09:51,640 --> 00:09:55,240 Speaker 11: Dorian Thompson Robinson the rookie as their starter, replacing the 200 00:09:55,280 --> 00:09:58,360 Speaker 11: injury to Shawn Watson. Gino Smith as an elbow injury, 201 00:09:58,400 --> 00:10:00,800 Speaker 11: hopeful that he can play for Seattle in the game 202 00:10:00,920 --> 00:10:04,480 Speaker 11: Thursday night against the forty nine Ers, I'm sending the NBA. 203 00:10:04,760 --> 00:10:07,840 Speaker 11: Charlotte beat the Celtics at overtime one twenty one to 204 00:10:07,960 --> 00:10:10,760 Speaker 11: one eighteen. The Hornets had lost four in a row. 205 00:10:10,800 --> 00:10:13,600 Speaker 11: It ends the Celtics six game winning street. Jason Tatum 206 00:10:13,600 --> 00:10:16,640 Speaker 11: scored forty five in the loss. The Warriors had lost 207 00:10:16,640 --> 00:10:19,160 Speaker 11: six in a row, but Steph Curry back in the lineup, 208 00:10:19,160 --> 00:10:20,800 Speaker 11: but he scored thirty two in a one twenty one 209 00:10:20,840 --> 00:10:24,240 Speaker 11: one sixteen win over Houston. Six straight loss for Washington 210 00:10:24,280 --> 00:10:26,760 Speaker 11: being home by Milwaukee one forty two to one twenty nine. 211 00:10:26,760 --> 00:10:30,520 Speaker 11: Giannis Duntractempo scored forty two shot twenty of twenty three. 212 00:10:30,760 --> 00:10:33,760 Speaker 11: Bruins lost in overtime at Tampa Bay John Station with 213 00:10:33,760 --> 00:10:35,640 Speaker 11: Bloomberg Sports Ken all. 214 00:10:35,559 --> 00:10:38,840 Speaker 2: Right, John, thank you. Coming up on Bloomberg day Break. 215 00:10:38,880 --> 00:10:41,760 Speaker 2: You've been hearing a lot about Open Ai and Sam 216 00:10:41,800 --> 00:10:45,040 Speaker 2: Altman and Microsoft. Of course, we'll be talking to the 217 00:10:45,120 --> 00:10:49,800 Speaker 2: Microsoft CEO, Satia Nadella. He joined our Emily Chang, and 218 00:10:50,240 --> 00:10:53,640 Speaker 2: he's going to discuss this entire story with us straight ahead. 219 00:10:53,679 --> 00:10:56,600 Speaker 2: And ahead of that conversation, futures are lower with SNP 220 00:10:56,760 --> 00:10:59,800 Speaker 2: futures down a tenth of a percent, down about five points. 221 00:11:00,000 --> 00:11:02,400 Speaker 2: And this is Bloomberg. 222 00:11:04,520 --> 00:11:07,520 Speaker 13: From coast to coast, from New York to San Francisco, 223 00:11:07,840 --> 00:11:12,920 Speaker 13: Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business 224 00:11:12,920 --> 00:11:14,640 Speaker 13: app in Bloomberg dot Com. 225 00:11:14,720 --> 00:11:16,680 Speaker 7: This is Bloomberg Daybreak. 226 00:11:17,960 --> 00:11:18,480 Speaker 8: Good morning. 227 00:11:18,520 --> 00:11:21,520 Speaker 3: I'm Nathan Hager. We continue to follow the saga at 228 00:11:21,679 --> 00:11:25,520 Speaker 3: open Ai after a whirlwind of events over the weekend 229 00:11:25,640 --> 00:11:29,800 Speaker 3: led to the ouster of co founder Sam Aldman, only 230 00:11:29,840 --> 00:11:32,800 Speaker 3: for Microsoft to. 231 00:11:31,960 --> 00:11:32,480 Speaker 1: Bring him on. 232 00:11:33,120 --> 00:11:37,400 Speaker 3: Microsoft CEO Satya Nadella joined Bloomberg's Emily Chang to discuss 233 00:11:37,600 --> 00:11:41,160 Speaker 3: the hiring of Sam Maltman as OpenAI investors push for 234 00:11:41,160 --> 00:11:44,680 Speaker 3: Altman to come back. They also spoke about Microsoft's partnership 235 00:11:44,720 --> 00:11:48,080 Speaker 3: with the company and its goals for artificial intelligence. Let's 236 00:11:48,080 --> 00:11:50,000 Speaker 3: bring you that conversation now, Satya. 237 00:11:50,160 --> 00:11:54,920 Speaker 14: Obviously, it's been a very fast moving and dramatic last 238 00:11:55,120 --> 00:11:57,520 Speaker 14: of seventy two to forty eight hours, and I want 239 00:11:57,520 --> 00:12:00,320 Speaker 14: to start with the state of play. Where are we now? 240 00:12:00,360 --> 00:12:03,360 Speaker 14: Open ai says it's hired a new CEO. We're reporting 241 00:12:03,360 --> 00:12:06,560 Speaker 14: their efforts to get Sam Altman back. Tell us where 242 00:12:06,600 --> 00:12:07,200 Speaker 14: things stand. 243 00:12:08,320 --> 00:12:10,760 Speaker 4: Well, first of all, having it's great to be with you, 244 00:12:10,760 --> 00:12:14,600 Speaker 4: you know, on Friday morning, we were very excited, committed 245 00:12:14,640 --> 00:12:18,320 Speaker 4: and confident in our innovation roadmap to bring this next 246 00:12:18,400 --> 00:12:20,760 Speaker 4: generation of AI to our customers. 247 00:12:21,880 --> 00:12:24,840 Speaker 7: And we feel fantastic and capable of doing that. 248 00:12:25,679 --> 00:12:27,960 Speaker 4: And we were partnered with open ai, and we were 249 00:12:28,000 --> 00:12:30,960 Speaker 4: partnered with Sam and that's exactly where I am on 250 00:12:31,200 --> 00:12:34,600 Speaker 4: Monday afternoon, if you will, because we think that we can. 251 00:12:34,880 --> 00:12:36,760 Speaker 4: You know, we are leading in this next generation of 252 00:12:36,800 --> 00:12:40,319 Speaker 4: AI technology. We continue to be committed to open ai, 253 00:12:40,480 --> 00:12:43,200 Speaker 4: and we continue to be committed to Sam and Greg 254 00:12:43,240 --> 00:12:45,800 Speaker 4: and the team in respect you where they are. And 255 00:12:45,840 --> 00:12:49,000 Speaker 4: you know, I think about Sam has chosen multiple times 256 00:12:49,040 --> 00:12:52,160 Speaker 4: now to work with us, and that's fantastic to see. 257 00:12:52,160 --> 00:12:55,080 Speaker 4: And I think the real thing is that the capability 258 00:12:55,120 --> 00:12:58,640 Speaker 4: that Microsoft has across the tech stack is what attracts 259 00:12:59,320 --> 00:13:02,280 Speaker 4: great people like Sam, you know, and people like Sam, 260 00:13:02,320 --> 00:13:05,120 Speaker 4: and you know, innovators like Sam when it comes to AI, 261 00:13:05,240 --> 00:13:06,880 Speaker 4: to come to us, and we are thrilled about it. 262 00:13:08,080 --> 00:13:13,960 Speaker 14: You incredibly quickly hired Sam as well as Greg. We 263 00:13:14,080 --> 00:13:18,160 Speaker 14: are hearing that Sam wants to return. Investors want him 264 00:13:18,360 --> 00:13:21,760 Speaker 14: to return to open ai. How would you feel about that? 265 00:13:23,000 --> 00:13:26,320 Speaker 4: Yeah, as I said, we really want to partner with 266 00:13:26,360 --> 00:13:28,440 Speaker 4: open ai and we want to partner with Sam. And 267 00:13:28,480 --> 00:13:31,320 Speaker 4: so in respect you of where Sam is, he's working 268 00:13:31,360 --> 00:13:34,120 Speaker 4: with Microsoft. And that is the case on Friday, and 269 00:13:34,160 --> 00:13:37,000 Speaker 4: that'll be that's the case today and we will I 270 00:13:37,080 --> 00:13:39,080 Speaker 4: absolutely believe that that will be the case tomorrow. 271 00:13:40,200 --> 00:13:44,200 Speaker 14: So what are the conversations you've had with open AI's 272 00:13:44,360 --> 00:13:49,000 Speaker 14: current board from their perspective, where do things stand? And 273 00:13:49,080 --> 00:13:52,720 Speaker 14: have you talked with Emmett Sheer, the new interim CEO. 274 00:13:54,160 --> 00:13:56,760 Speaker 4: Yeah, I've had conversations with Emmett, and again it's the 275 00:13:56,800 --> 00:14:00,200 Speaker 4: same thing. There's no real difference there from where we 276 00:14:00,200 --> 00:14:02,640 Speaker 4: were when we were working with Mira and she was 277 00:14:02,679 --> 00:14:06,520 Speaker 4: interim CEO, when Sam was CEO and Emmett So my 278 00:14:06,600 --> 00:14:08,920 Speaker 4: message to them Emmett is very clear, which is, hey, look, 279 00:14:08,960 --> 00:14:11,280 Speaker 4: we remain very very committed to open ai and it's 280 00:14:11,400 --> 00:14:14,240 Speaker 4: mission and it's sort of roadmap and they can count 281 00:14:14,240 --> 00:14:17,160 Speaker 4: on us. And then, as I said, we also are 282 00:14:17,240 --> 00:14:19,400 Speaker 4: very committed to Sam and Greg and team that want 283 00:14:19,440 --> 00:14:22,000 Speaker 4: to join us. If they're not at open ai or 284 00:14:22,040 --> 00:14:24,760 Speaker 4: anyone else who's at open ai wants to go somewhere else, 285 00:14:24,760 --> 00:14:26,720 Speaker 4: we want them to come to Microsoft and continue to 286 00:14:26,760 --> 00:14:29,520 Speaker 4: work here and win partnership with open ai. 287 00:14:30,720 --> 00:14:34,520 Speaker 14: To your knowledge, why was Sam fired and to your 288 00:14:34,640 --> 00:14:38,200 Speaker 14: knowledge was he involved in any wrongdoing? Has the board 289 00:14:38,320 --> 00:14:40,160 Speaker 14: given you a reason? 290 00:14:42,520 --> 00:14:44,800 Speaker 4: As far as I'm concerned, you know, we were, as 291 00:14:44,840 --> 00:14:46,920 Speaker 4: I said, we were very confident in Sam and his 292 00:14:47,040 --> 00:14:47,720 Speaker 4: leadership team. 293 00:14:48,280 --> 00:14:49,880 Speaker 7: I've not been told about anything. 294 00:14:50,200 --> 00:14:53,920 Speaker 4: You know, they published internally at open ai that there 295 00:14:54,000 --> 00:14:56,960 Speaker 4: is not that the board has not talked about anything 296 00:14:56,960 --> 00:14:59,760 Speaker 4: that Sam did other than some breakdown in communications. And 297 00:15:00,200 --> 00:15:02,480 Speaker 4: you know, I'm not directly and was told by anyone 298 00:15:02,560 --> 00:15:05,440 Speaker 4: from their board about any issues. And so therefore I 299 00:15:05,480 --> 00:15:09,680 Speaker 4: remain confident in Sam and his leadership and capability, and 300 00:15:09,720 --> 00:15:12,479 Speaker 4: that's why you know, we want to welcome him to Microsoft. 301 00:15:13,640 --> 00:15:17,080 Speaker 14: Now, we understand that to support a return of Sam 302 00:15:17,080 --> 00:15:20,240 Speaker 14: mom and too open Ai, Microsoft wants some changes to 303 00:15:20,280 --> 00:15:23,960 Speaker 14: the board, to governance, to its overall contract with open ai, 304 00:15:24,200 --> 00:15:28,200 Speaker 14: so something like this never happens. Again, what specifically are 305 00:15:28,200 --> 00:15:31,040 Speaker 14: you looking for, for example, would you want to board 306 00:15:31,120 --> 00:15:32,640 Speaker 14: see and if not, what else? 307 00:15:33,760 --> 00:15:35,440 Speaker 7: Yeah, I mean I think we definitely will want some 308 00:15:35,480 --> 00:15:37,840 Speaker 7: governance changes. So then you know, you know. 309 00:15:37,840 --> 00:15:41,280 Speaker 4: Surprises are bad and we just want to make sure 310 00:15:41,360 --> 00:15:44,320 Speaker 4: that things are done in a way that will allow. 311 00:15:44,160 --> 00:15:46,920 Speaker 7: Us to continue to partner. Well that's about it, right. 312 00:15:46,960 --> 00:15:50,040 Speaker 4: You know, this idea that somehow, you know, suddenly changes 313 00:15:50,080 --> 00:15:53,000 Speaker 4: happen without being you know, in the loop is not good. 314 00:15:53,640 --> 00:15:56,480 Speaker 4: And we will definitely ensure that some of the changes 315 00:15:56,480 --> 00:15:59,360 Speaker 4: that are needed to happen and we continue to be 316 00:15:59,440 --> 00:16:02,480 Speaker 4: able to go along on the partnership with open AI. 317 00:16:03,520 --> 00:16:06,360 Speaker 14: So how are you envisioning this role with the sort 318 00:16:06,400 --> 00:16:08,800 Speaker 14: of you know, advanced AI team that Sam and Greg 319 00:16:08,800 --> 00:16:12,040 Speaker 14: would be joining and leading. Can you explain that? And 320 00:16:12,120 --> 00:16:15,920 Speaker 14: are they actually Microsoft employees right now? Like who do 321 00:16:15,960 --> 00:16:16,520 Speaker 14: they work for? 322 00:16:17,800 --> 00:16:21,080 Speaker 4: Yeah, so they're all in the process of joining, and yes, 323 00:16:21,160 --> 00:16:23,560 Speaker 4: I mean the thing is that you know, we have 324 00:16:23,640 --> 00:16:26,320 Speaker 4: a ton of AI expertise in this company. You know, 325 00:16:26,360 --> 00:16:29,720 Speaker 4: in fact, at Aurignite conference last week, we talked about 326 00:16:29,760 --> 00:16:32,480 Speaker 4: all of the great work open aies doing and on 327 00:16:32,600 --> 00:16:36,080 Speaker 4: Azure and all the models and tools that we built 328 00:16:36,080 --> 00:16:38,400 Speaker 4: around it. And we also talked about all the open 329 00:16:38,400 --> 00:16:41,560 Speaker 4: source models that are on Azure from you know, Lama 330 00:16:41,640 --> 00:16:46,000 Speaker 4: and miss Stral and jas and everything you know. And 331 00:16:46,040 --> 00:16:48,040 Speaker 4: then also you know, in fact, not only are we 332 00:16:48,160 --> 00:16:51,760 Speaker 4: leaders in llms in partnership with open ai, but we're 333 00:16:51,760 --> 00:16:54,800 Speaker 4: also leaders in SLMs or the small language models with 334 00:16:54,880 --> 00:16:57,000 Speaker 4: five and we talked about that, which is all developed 335 00:16:57,000 --> 00:17:00,320 Speaker 4: by Microsoft Research. So what we am excited about is 336 00:17:00,360 --> 00:17:02,840 Speaker 4: sort of creating another team that's really going to have 337 00:17:02,960 --> 00:17:05,960 Speaker 4: high ambition on leading edge advanced day I work that 338 00:17:06,080 --> 00:17:07,720 Speaker 4: Sam and Greg are excited about. 339 00:17:08,000 --> 00:17:09,920 Speaker 7: This is something that you know, we've talked a lot 340 00:17:09,960 --> 00:17:10,640 Speaker 7: about with them. 341 00:17:10,680 --> 00:17:13,239 Speaker 4: You know, what happens in twenty five, what happens in 342 00:17:13,320 --> 00:17:16,240 Speaker 4: thirty What do we do to advance both the system 343 00:17:16,359 --> 00:17:17,840 Speaker 4: side the science side. 344 00:17:18,720 --> 00:17:20,719 Speaker 7: And that's the thing that we will be pushing on. 345 00:17:21,760 --> 00:17:24,520 Speaker 14: Now. Many folks I'm speaking with don't see Sam as 346 00:17:24,520 --> 00:17:27,640 Speaker 14: a sort of big tech company guy. He has all 347 00:17:27,640 --> 00:17:30,800 Speaker 14: of these side product projects that you know, we've already 348 00:17:30,840 --> 00:17:33,159 Speaker 14: heard about, we've reported on new projects. Would he be 349 00:17:33,200 --> 00:17:38,960 Speaker 14: able to pursue these side projects while being employed by Microsoft? 350 00:17:39,520 --> 00:17:42,760 Speaker 4: Yeah, I'm sure you know, Like you know, Sam has 351 00:17:42,800 --> 00:17:46,000 Speaker 4: got broad interests and broad investments and so on, and 352 00:17:46,000 --> 00:17:48,560 Speaker 4: we'll definitely, you know, work through the governance aspects of it. 353 00:17:49,080 --> 00:17:51,520 Speaker 4: But most importantly, I think you would want to only 354 00:17:51,560 --> 00:17:54,120 Speaker 4: work at Microsoft if he wants to spend his full 355 00:17:54,160 --> 00:17:57,239 Speaker 4: time time on really pursuing the mission, just like how 356 00:17:57,280 --> 00:17:58,680 Speaker 4: we were spending his time on open AI. 357 00:17:58,840 --> 00:18:01,280 Speaker 7: And so that's kind of the idea. 358 00:18:01,080 --> 00:18:05,560 Speaker 4: Behind having him lead this advanced research team around AI 359 00:18:05,840 --> 00:18:06,959 Speaker 4: with Greg and others. 360 00:18:07,320 --> 00:18:09,560 Speaker 7: And you know, that's an exciting thing for us to 361 00:18:09,600 --> 00:18:10,159 Speaker 7: look forward to. 362 00:18:11,680 --> 00:18:15,479 Speaker 14: I'm curious just your reaction to you know, the last 363 00:18:15,720 --> 00:18:19,119 Speaker 14: three days of events. Are you now more concerned than 364 00:18:19,160 --> 00:18:24,040 Speaker 14: ever about AI safety, given we've seen clearly how fragile 365 00:18:24,320 --> 00:18:25,520 Speaker 14: these institutions are. 366 00:18:27,240 --> 00:18:28,000 Speaker 7: It's a great point. 367 00:18:28,080 --> 00:18:30,800 Speaker 4: I mean, the thing that I think, in some sense, 368 00:18:31,359 --> 00:18:35,000 Speaker 4: I've always felt that we should think about the unintended 369 00:18:35,040 --> 00:18:38,960 Speaker 4: consequences of any great advances in technology from day one, 370 00:18:39,160 --> 00:18:41,879 Speaker 4: versus dealing with them later. So in some sense I 371 00:18:42,080 --> 00:18:47,600 Speaker 4: welcome this dialogue, if you will, of safety and safety first, 372 00:18:47,720 --> 00:18:51,480 Speaker 4: even in technology and technological development, right, I mean, that's 373 00:18:51,520 --> 00:18:54,240 Speaker 4: I think in some sense it should be celebrated that 374 00:18:54,320 --> 00:18:56,600 Speaker 4: we as a tech industry have gotten to a place 375 00:18:57,320 --> 00:18:59,520 Speaker 4: where we don't think of this as a tradeoff, but 376 00:18:59,560 --> 00:19:02,160 Speaker 4: we think about this as two considerations that are. 377 00:19:02,080 --> 00:19:03,200 Speaker 7: Both first class. Right. 378 00:19:03,200 --> 00:19:06,399 Speaker 4: One is how do we build technology so that everybody 379 00:19:06,400 --> 00:19:10,000 Speaker 4: in the world can have a doctor, an X that 380 00:19:10,080 --> 00:19:12,960 Speaker 4: they can reach, or a tutor or you know, a 381 00:19:13,160 --> 00:19:16,639 Speaker 4: rural farmer in India has more agency because of technology 382 00:19:16,680 --> 00:19:18,359 Speaker 4: that was developed in the West Coast of the United 383 00:19:18,400 --> 00:19:21,119 Speaker 4: States a few months earlier. These are unbelievable things that 384 00:19:21,240 --> 00:19:24,520 Speaker 4: democratize access on one side, but on the other side, 385 00:19:24,560 --> 00:19:27,600 Speaker 4: being grounded on the here and now harms right, whether 386 00:19:27,640 --> 00:19:32,720 Speaker 4: it's election interference or deep fakes or bias or bioterrorism 387 00:19:32,800 --> 00:19:35,399 Speaker 4: and having the guardrails against it or even some of 388 00:19:35,440 --> 00:19:38,399 Speaker 4: the you know, AI take off existential risks and the 389 00:19:38,480 --> 00:19:41,240 Speaker 4: alignment research that is required. So I think that there 390 00:19:41,280 --> 00:19:45,479 Speaker 4: is a real robust dialogue that's happening, which is and 391 00:19:45,560 --> 00:19:48,160 Speaker 4: real work. Like when I think about Microsoft, we have done, 392 00:19:48,280 --> 00:19:51,960 Speaker 4: in fact, some of the biggest most work around AI alignment, 393 00:19:52,080 --> 00:19:55,320 Speaker 4: AI safety guardrails. So for example, even the open source 394 00:19:55,359 --> 00:19:58,880 Speaker 4: models we launched last week all have benefit from all 395 00:19:58,920 --> 00:20:02,600 Speaker 4: the guardrail work we did around open AYE models. 396 00:20:03,720 --> 00:20:06,520 Speaker 14: So throughout the reporting process, we've heard, you know, concerns 397 00:20:06,520 --> 00:20:09,240 Speaker 14: about potential regulatory issues and of course the power that 398 00:20:09,280 --> 00:20:12,600 Speaker 14: Microsoft already has, the power that Microsoft has in AI. 399 00:20:12,720 --> 00:20:14,520 Speaker 14: Have you, on your end work through all the potential 400 00:20:14,600 --> 00:20:16,879 Speaker 14: legal issues at play here? I mean, I just spoke 401 00:20:16,880 --> 00:20:19,800 Speaker 14: to one investor who said, you know, they're considering suing 402 00:20:19,920 --> 00:20:23,560 Speaker 14: open ai, Like, you know, there's a lot of things 403 00:20:23,560 --> 00:20:26,199 Speaker 14: that have yet it seems to be figured out. And 404 00:20:26,240 --> 00:20:29,880 Speaker 14: do you know what Microsoft's legal liability is and open 405 00:20:29,920 --> 00:20:33,680 Speaker 14: AI's legal liability is given your significant investment. 406 00:20:33,200 --> 00:20:39,120 Speaker 4: There, Yeah, Look, I'm I'm most focused on and most 407 00:20:39,200 --> 00:20:40,439 Speaker 4: excited about our. 408 00:20:40,320 --> 00:20:43,080 Speaker 7: Ability to continue to innovate. 409 00:20:43,160 --> 00:20:47,280 Speaker 4: Emily I mean, I let the lawyers sort of figured 410 00:20:47,280 --> 00:20:50,320 Speaker 4: out what liabilities are. But I think we have all 411 00:20:50,359 --> 00:20:54,080 Speaker 4: the capability, all the IP and all the things that 412 00:20:54,119 --> 00:20:57,280 Speaker 4: we need in order to continue to essentially control our 413 00:20:57,320 --> 00:21:00,560 Speaker 4: destiny here so that we can continue to innovate on 414 00:21:00,640 --> 00:21:03,400 Speaker 4: behalf of our customers. That's what matters, That's what makes 415 00:21:03,440 --> 00:21:07,080 Speaker 4: Microsoft Microsoft, and we'll continue to do what we need 416 00:21:07,119 --> 00:21:07,360 Speaker 4: to do. 417 00:21:08,119 --> 00:21:11,359 Speaker 14: Okay, so quick, last question, this is today. Who's going 418 00:21:11,440 --> 00:21:13,880 Speaker 14: to be CEO of open Ai Tomorrow? You tell me. 419 00:21:15,920 --> 00:21:18,119 Speaker 7: I will leave it to open Ai and it's bored. 420 00:21:18,359 --> 00:21:21,640 Speaker 3: Microsoft Ceosatia Nadella says, no matter what happens, open Ai 421 00:21:21,800 --> 00:21:23,280 Speaker 3: needs governance changes. 422 00:21:23,440 --> 00:21:27,600 Speaker 15: Microsoft shares clothes at a record high yesterday. 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