Speaker 1: From Mahard where Innovation, Money and power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroline Heidel, Bloomberg's World headquarters in New York. Ed
Speaker 3: Ludlow's off This is Bloomberg Technology coming up. We engage
Speaker 3: the health of technology earnings with eighty percent of S
Speaker 3: and P five companies out with results. And as Buffett
Speaker 3: cuts his steak, we'll push your head to Apple's product
Speaker 3: event as the company prepares to launch new iPads plus,
Speaker 3: we speak to andrel founder.
Speaker 4: Palmer Lucky as a company announces.
Speaker 3: A brand new range of AI powered products. But first
Speaker 3: let's check in on these markets and look, we have
Speaker 3: a post fed feeling of well optimism in the markets
Speaker 3: that feel so. We don't have an awful lot of
Speaker 3: economic data on the table. We do have some significant
Speaker 3: bondishuents ten yure yields holding steady. We're four point five
Speaker 3: percent the nawstak managing to push up to six tens
Speaker 3: ofven percent, notably seeing the S and P five hundred
Speaker 3: breaking some of those technical levels of where we've seen
Speaker 3: an average and trade over the last fifty days.
Speaker 4: So there seems to be some boyant moves and risk
Speaker 4: on attitude.
Speaker 3: Not though in bitcoin, though crypto off by nine tens
Speaker 3: of percent, we're seeing sixty three one hundred and fifty
Speaker 3: five is currently where we trade.
Speaker 4: Move it on though, and when it comes to encrypto.
Speaker 3: Related news will be digging into what's happened.
Speaker 4: With Robin Herd.
Speaker 3: Of course, wells notice received SEC looking at particularly it's
Speaker 3: crypto sales that it currently does up seven tens percent,
Speaker 3: despite of course announcing that the SEC may well be
Speaker 3: looking into its business. Apple down seven tens percent. This
Speaker 3: is all post of course, the oracle of Omaha over
Speaker 3: Warren Buffett saying, look, I'm pulling back on the steak
Speaker 3: in Apple, even though he did shower its praise over
Speaker 3: the business, really loving the iPhone product. But nevertheless, we
Speaker 3: look ahead to new products, new iPads. Push ahead with
Speaker 3: that in Mark German in a moment, but in Vidia
Speaker 3: up two point six percent. I want to shine like
Speaker 3: more broadly on some of each makers because we are
Speaker 3: seeing a lot of movement higher the socks, for example
Speaker 3: trading high and Vidia is still yet to report that
Speaker 3: comes May twenty May twenty second. We also get arm
Speaker 3: this week. There is still so much to be said
Speaker 3: for earnings. The earning season well underway. Results from about
Speaker 3: eighty percent of the S and P five hundred already
Speaker 3: in technology communication services companies, they're beating profit estimates.
Speaker 4: Roughly ninety percent of.
Speaker 3: Teching communication services companies actually topped earnings estimates, according to
Speaker 3: Day to combined by Bloomberg. When get all the statistics,
Speaker 3: Bloomberg's jestmenton is with us and pleased to say, and
Speaker 3: just more broadly, it feels as though when companies have
Speaker 3: beat have they really outperformed? I mean, Apple was a
Speaker 3: massive sigh of relief when we saw the stock rally,
Speaker 3: but how has that been bearing up?
Speaker 5: So you can actually see this function in Bigo, So
Speaker 5: Gina Marrit Adams team ver in that function and you
Speaker 5: can see basically on the equities there. So when you're
Speaker 5: looking at how starks in aggregate from the S and
Speaker 5: P five hundred have been performing in excess of the
Speaker 5: broader index, they actually it's basically kind of appeals in
Speaker 5: comparison to how they have been in prior quarters. But nonetheless,
Speaker 5: because of Apple on Friday, when you see this now
Speaker 5: the S and P five hundred since earning season basically
Speaker 5: got into full swing with JP Morgan back on April twelfth.
Speaker 5: Now it's up close to about one percent in that span.
Speaker 5: It had been about lower than one percent prior to
Speaker 5: Apple's earnings results. So now you're starting to see that
Speaker 5: pick up a bit just on the back of obviously
Speaker 5: these big tech bell weathers. But to your point, Caroline,
Speaker 5: we still have Nvidia coming up.
Speaker 4: On May twenty second, I know, and there was so
Speaker 4: much optimism baked in.
Speaker 3: What about those that have missed, I mean, they've been
Speaker 3: punished hot, have they and have have been any themes
Speaker 3: as to why they've missed.
Speaker 5: Well, that's a great point too, because a lot of
Speaker 5: that also has to do with more forward looking guidance.
Speaker 5: And that's why because as we know, when you do
Speaker 5: think about first quarter earnings results, that is more backward looking.
Speaker 5: So when it comes to the guidance, that's where it
Speaker 5: has been disappointing. And then, of course, because this is
Speaker 5: a technology program, obviously a lot of traders and investors
Speaker 5: want to know when those cost cutting efforts that have
Speaker 5: really helped propel any sort of big tech company or
Speaker 5: especially anything that is tied to that, especially as when
Speaker 5: you think back to Meta at the end of twenty
Speaker 5: twenty two when it started its first big job cuts
Speaker 5: entranch there and then another one last spring. How much
Speaker 5: longer can this continue? So if you look at the
Speaker 5: bifunction though on a twelve month aggregate basis, seal site
Speaker 5: analysts are still marking up their projections for technology companies
Speaker 5: and growth companies too, But a lot of those laggards
Speaker 5: like healthcare and utilities, those are actually starting.
Speaker 3: To pick up too now maybe with the effect of AI.
Speaker 3: Many wanted to just see that impact. How the industry
Speaker 3: groups just lastly give us the sentence of whether companies
Speaker 3: have already been rewarding shareholders, because that felt like why
Speaker 3: a lot of the reason Apple popped it was because
Speaker 3: we got a massive buyback was starting to see companies
Speaker 3: give dividends. I mean, you triggered my memory with the
Speaker 3: fact that Meta didn't this time, but they did in
Speaker 3: the pre setting season.
Speaker 5: That's always usually music to trader's ears there. But also
Speaker 5: the big thing about buybacks is also when you look
Speaker 5: at what's happening with Capex and reinvesting into those businesses,
Speaker 5: so just beyond that, So that's something that investors want
Speaker 5: to see more of as far as what are companies
Speaker 5: doing to reinvest beyond just those buyback programs, But we
Speaker 5: have seen a number of companies in a especially to
Speaker 5: your point, Caroline, looking at Apple with that historic buyback announcement.
Speaker 5: Of course it still has to execute those, but we
Speaker 5: still have when you're thinking about what potential catalysts could
Speaker 5: come for Apple. Obviously we know in early June we'll
Speaker 5: have the Worldwide Developers Conference, but I know Mark German
Speaker 5: from Bloomberg is coming up soon, so he's going to
Speaker 5: talk about the big event tomorrow where potentially we could
Speaker 5: can see some more new iPads that are coming out.
Speaker 3: Caroline, let Mark loose at the moment of the HANJ
Speaker 3: just meant and brilliant to have your round level what's
Speaker 3: been happening in.
Speaker 4: Terms of the earning season.
Speaker 3: We actually want to get aroun investors take care as well.
Speaker 3: Uncle Crawlford's with us executive vice president for Phodio manager
Speaker 3: over at algia twenty five billion dollars NASA's under management,
Speaker 3: and Uncle Apple actually one of your biggest holdings. You
Speaker 3: have been cutting that a little bit across some of
Speaker 3: your funds. Water Muffett doing the same thing. How have
Speaker 3: you interpreted, for example, a company such as Apple's results
Speaker 3: and ultimately the growth trajectory of a business like that.
Speaker 6: Look, Apple is a consumer utility, and one of the
Speaker 6: things about Apple has been that they has been slower
Speaker 6: in adopting this AI cycle. So the hope is that
Speaker 6: at some point they will catch up and they will
Speaker 6: be a FEST follower, which we strongly believe that they will.
Speaker 6: But in the near term, there are other companies that
Speaker 6: are more immediately investing in and procuring AI type revenues
Speaker 6: that is propelling growth.
Speaker 4: Okay, let's talk through some of those names.
Speaker 3: I mean, we've heard from Alphabet, from Amazon, from Meta,
Speaker 3: all of them. The capec spend their making are they
Speaker 3: building the reward in return for that investment?
Speaker 6: From your perspective, absolutely, It's the number one thing that
Speaker 6: we have been looking at through this earning season has
Speaker 6: been capex and how these companies are spending their capex.
Speaker 6: We wholeheartedly expected them to have a big CABEC CAPEX
Speaker 6: number through twenty twenty four, and they're even talking about
Speaker 6: twenty twenty five. And this to us is the leading
Speaker 6: indicator of what's to come in AI because they wouldn't
Speaker 6: be building this CAPEX unless they saw the demand trends.
Speaker 6: I would remind you that during earning season, both Microsoft
Speaker 6: and Amazon talked about how they were limited on capacity
Speaker 6: of GPUs. So this again, I mean people keep asking
Speaker 6: like the where is the application.
Speaker 4: Someone is using those GPUs?
Speaker 6: They're all used up already, the hundreds of millions that
Speaker 6: have always been already been spent.
Speaker 3: And of course benefits from the desire for GPUs. It's
Speaker 3: going to be in video, right, I mean, is that
Speaker 3: the number one play for you? Have you been looking
Speaker 3: at well a MD or indeed looking at the design
Speaker 3: element with M Yeah.
Speaker 6: So I think a lot of boat boats are going
Speaker 6: to rise over the next decade, and a lot of
Speaker 6: boats are rising now. So it will it be a
Speaker 6: winner take all market. It's not going to be a
Speaker 6: winner take all market. There will be many different winners.
Speaker 6: Nvidia is going to be the winner take most however,
Speaker 6: and we are really excited about what Nvidia is doing
Speaker 6: in terms of not only software development, but how they're
Speaker 6: changing the network in order to make data centers more efficient.
Speaker 6: So they're reaching out beyond just chips into the price
Speaker 6: networking and software as well, so that sets up a
Speaker 6: really great note for them and makes us very bullish
Speaker 6: on Nvidia.
Speaker 3: I mean, it's one of your number one holdings across
Speaker 3: some of your largest funds. I note that you've also
Speaker 3: been starting new funds and ETF in particular, trying to
Speaker 3: execute on this AI theme. Can you talk us through
Speaker 3: some of the names and perhaps why not automatically consider
Speaker 3: the AI play that you've been adding to.
Speaker 6: Yeah, so you know there's two companies in the industrial space,
Speaker 6: Vertive and Quantu Services, both of which are you know,
Speaker 6: they used to be relatively slow growth companies but are
Speaker 6: now levered to the AI play. Vertive makes cooling systems
Speaker 6: for data centers, and Quanta I actually I joke that
Speaker 6: these are ditch diggers or their pool climbers, because they
Speaker 6: effectively distribute or make the transmission for electricity.
Speaker 4: Both of these.
Speaker 6: Things are going to be to have radically changing competitive
Speaker 6: dynamics in that, for example, for Quanta, we don't have
Speaker 6: enough electricity, so we expect to see utility capex start
Speaker 6: to rise incrementally over the next five to seven years,
Speaker 6: all of which will service the people that implement the
Speaker 6: transmission lines.
Speaker 4: For Vertive, you have a.
Speaker 6: Very changing dynamic on the cooling aspect of the data
Speaker 6: center and vertive ends up being the net winner.
Speaker 3: And God, that's really interesting because we're hearing again and
Speaker 3: again that this is a worry for example of Sam
Speaker 3: Altman been going around the Middle East in particular, worrying
Speaker 3: that the key anxiety, the kid bottlenecks here are energy
Speaker 3: and indeed access to GPU. That's why there's been so
Speaker 3: much reporting of the fact that he's trying to build
Speaker 3: up other chip makers. How have you been thinking about
Speaker 3: ultimately that actually being the key bottleneck? Do you agree
Speaker 3: that energy is going to be the real issue here,
Speaker 3: limiting factor?
Speaker 6: I think that technology is pretty amazing in that as
Speaker 6: you forward, I mean, as we stand today, is energy
Speaker 6: going to be a bottleneck?
Speaker 4: It is.
Speaker 6: However, as you move forward two three and four years,
Speaker 6: the energy efficiency efforts that are occurring, not only at
Speaker 6: the chip level but at the data center level are
Speaker 6: quite significant, and we think that the technology on cooling
Speaker 6: and electricity will keep up and not hamper.
Speaker 4: The growth of the industry.
Speaker 6: So, for example, if you look at the performance per
Speaker 6: want of the B one hundred, which is Nvidia's newest chip,
Speaker 6: it's actually significantly more efficient than the older generations, and
Speaker 6: so as you move through time, I do believe that
Speaker 6: on a performance per want basis, you end up getting
Speaker 6: more efficiency than is currently baked in by the market.
Speaker 4: What is the market getting?
Speaker 3: Two wigsubun Do you believe any view that the hype
Speaker 3: has made market capitalizations unsustainable in certain names?
Speaker 6: I don't think the market is exuberant right now. And
Speaker 6: and you know everyone always asks like, are we in
Speaker 6: a bubble? Are we in an AI bubble? And I
Speaker 6: would say it's much too early. This is very much
Speaker 6: like you know, it's revolutionary in terms of what is
Speaker 6: about to happen. So, you know, I was just look
Speaker 6: at the valuations across across the mag seven this morning.
Speaker 4: You look at Meta.
Speaker 6: Meta currently trades at a ten percent discount to the
Speaker 6: market on our twenty twenty five earnings. Actually it might
Speaker 6: be a fifteen percent discount now that it's pulled back
Speaker 6: so much. That to me, for UH, a company that
Speaker 6: is going to change the way that we interact as
Speaker 6: consumers with AI and how businesses interact with consumers is
Speaker 6: not an egregious multiple. You know, you can go down
Speaker 6: the list with Amazon. Amazon doesn't trade at that egregious
Speaker 6: so multiple to the market, especially as they're showing leverage.
Speaker 6: You know, you look at Microsoft Microsoft again, if you
Speaker 6: look at twenty twenty six numbers, it trades at a
Speaker 6: five percent free CASHUW yield. So to me, these aren't
Speaker 6: really set up as bubble esque type valuations, and we're
Speaker 6: not terribly exuberant, especially after this fallback.
Speaker 4: Well said Uncle Crawford.
Speaker 3: Really great to get your perspective as someone who is
Speaker 3: holding a lot of these names, investing in and indeed
Speaker 3: adding to we thank you, Uncle Crawford of algia.
Speaker 4: Great way to kick off this week.
Speaker 3: Meanwhile, coming up, Apple preparing to unveil a new lineup
Speaker 3: of vipe as we're just talking about. It's the product
Speaker 3: launch called Let's Loose as tomorrow we're gonna be previewing
Speaker 3: the event. Next Meanwhile, let's just look at GameStop, which
Speaker 3: is moving for no apparent reason. Again, you know, it's
Speaker 3: the og meme stock. We're down some thirteen percent last week.
Speaker 3: Of course it was rallying hard. I mean ended Friday's
Speaker 3: session up about twenty nine percent. That seems to be
Speaker 3: a real well desired to be getting in and out
Speaker 3: on this key meme name once again, we'll keep an
Speaker 3: eye for you. This will blue Bid Technology. Berkshire hathawayn
Speaker 3: Hel does annual meeting over the weekend, of course, and
Speaker 3: Apple quickly became one of the biggest topics as the
Speaker 3: meeting unfolded. Warren Buffett here praise the company, calling the
Speaker 3: iPhone one of the greatest products of all time.
Speaker 4: That was after revealing h kind of steak.
Speaker 3: Berkshire reported a one hundred and thirty five point four
Speaker 3: billion dollar holding in Apple at the end of the
Speaker 3: first quarter, down.
Speaker 4: From one hundred and seventy four zero point three billion
Speaker 4: at the year end.
Speaker 3: Now, meanwhile, whole news when it comes to Apple and
Speaker 3: fox Conn, which of course assembles the majority of iPhones,
Speaker 3: posted its strongest monthly sales growth since the start of
Speaker 3: twenty twenty three. And just look at what the impact
Speaker 3: I had on the shares potentially of course, raising those
Speaker 3: expectations for iPhones for a server sales. I spoke it
Speaker 3: all down and push your heead tomorrow's event. Of course,
Speaker 3: all regarding the iPad Springberg's Mark Guman here with us
Speaker 3: and on high or fox Conn, however you want to
Speaker 3: talk about it, always a great tell we'd been worried
Speaker 3: about its previous earnings. But now it looks that from
Speaker 3: a month to month basis on year on year monthly posting,
Speaker 3: we're getting record say for the company.
Speaker 7: If you look at the prior quarter, han Hi's revenue,
Speaker 7: their expectations, their forecasts.
Speaker 2: Weren't so hot, right.
Speaker 7: And then you saw Apple reveal its iPhone sales for
Speaker 7: the previous quarter last week, and you saw the iPhone
Speaker 7: come in about five billion dollars down on a year
Speaker 7: of a year basis.
Speaker 2: Right.
Speaker 7: But looking ahead to the June quarter, the current window
Speaker 7: that we're in, Apple set it expects revenue to grow
Speaker 7: low single digits, right, so growing for the first time
Speaker 7: in a couple quarters. Here, and fox CON's expectations for
Speaker 7: this quarter as well, it seems to align with that,
Speaker 7: given that they still assemble the vast majority of iPhones
Speaker 7: via fox Con. Now not only iPhones driving that han
Speaker 7: high revenue, it's also development and manufacturing of AI servers
Speaker 7: for various companies. However, I don't believe that the AI
Speaker 7: servers that fox Coon is building are connected to Apple's
Speaker 7: AI announcement coming in June. For all intentsive purposes, the
Speaker 7: AI from Apple will be on device at least from
Speaker 7: the get go, and probably using third party infrastructure, not
Speaker 7: something they're creating on their own. But one day I
Speaker 7: do expect Apple to move to its own AI server environment.
Speaker 3: Oh interesting, Okay, And therefore talk to us about the
Speaker 3: long term commitment to Apple and indeed perhaps a pullback
Speaker 3: coming from what is its third biggest shareholder, Berkshire Hathaway saying, look,
Speaker 3: we are pulling and trimming back, but they still seem
Speaker 3: to believe in Apple as a key tech winner.
Speaker 2: Yeah.
Speaker 7: I think Buffett does seem to believe Apple is a
Speaker 7: key tech winner. I mean Buffett in his typical process
Speaker 7: for which stocks he buys.
Speaker 2: Apple is right up his alley. Right, You're not.
Speaker 7: Going to see Apple grow tenfold or to some significant
Speaker 7: degree at this point, but you know that it's more
Speaker 7: likely than not that you're going to get solid returns
Speaker 7: off this company. You're not going to lose your money.
Speaker 7: It's certainly better than putting your money in a bond
Speaker 7: market or in a mutual fund in most cases. So
Speaker 7: it is a very safe pick Apple, I think for
Speaker 7: many quarters to come, despite the fact that it's not
Speaker 7: going to be a high flyer or anything like that.
Speaker 3: I meant one hundred and ten billion dollar share by
Speaker 3: that many feeling that that's the tell it's a value
Speaker 3: stock now rather than a growth stock mark. But I'm
Speaker 3: interested in away from the arbitrary way in which we
Speaker 3: describe whether you buy into this stock. We are all
Speaker 3: caring about the products and the unveilings, and we're going
Speaker 3: to get some.
Speaker 7: Yeah, that's right. Tomorrow Tuesday, seven am Pacific time, t
Speaker 7: am Eastern time, is there let loose iPad product launch.
Speaker 7: There's going to be a few things coming. One is
Speaker 7: a revamped version of the iPad Pro. This will be
Speaker 7: the most significant update to the company's tablet since the
Speaker 7: current model was launched in twenty eighteen. You're also going
Speaker 7: to see a new iPad Air. Why is that important, Well,
Speaker 7: in addition to a spec bump, you're getting a bigger
Speaker 7: iPad Air, something closer to the size of a MacBook
Speaker 7: Air for the screen, a twelve point nine inch display.
Speaker 7: This will be the first time that Apple's offering a
Speaker 7: twelve point nine inch iPad at that mid tier price
Speaker 7: point right and at that mid tier product line. So
Speaker 7: that's a big deal as Apple looks to make it
Speaker 7: iPads more like Max and expand the product line there,
Speaker 7: and then you're going to see them rebuild the ecosystem
Speaker 7: around its iPads. It's two key new accessories. Is going
Speaker 7: to be a new Magic keyboard, a higher end version
Speaker 7: that makes the iPad pro look more like a laptop
Speaker 7: all in use, something that's a bit more durable and convenient.
Speaker 7: The second thing is a pro version of the Apple pencil,
Speaker 7: so a new higher end skew of its Apple pencil silence.
Speaker 7: That's a really popular accessory that artists and creatives and
Speaker 7: others like to use for drawing. The new version will
Speaker 7: have some new gestures so you can squeeze on it
Speaker 7: to have certain commands. Apples homepage was updated this morning
Speaker 7: where you can use an Apple pencil a virtual pencil
Speaker 7: to erase the logo on Apples homepage, which might imply
Speaker 7: that the pencil's finally getting an eraser on the back
Speaker 7: like a classic number two pencil. And the other thing
Speaker 7: I've written that we'll have is hap to feedback, so
Speaker 7: when you use the pencil, it'll vibrate back on your finger,
Speaker 7: so you know what you're doing based on tactile feedback.
Speaker 7: So that's going to be a pretty nissed the update
Speaker 7: as well. And I think overall, for iPad fans, especially
Speaker 7: those who've been waiting many, many, many months, even years
Speaker 7: for a revamp version of iPad Pro, tomorrow is going
Speaker 7: to be quite an exciting product launch for them.
Speaker 3: I love playing Mark German bingo of all the things
Speaker 3: that you've just told us and playing it out tomorrow
Speaker 3: when they all come to life. We thank you, Lumog's
Speaker 3: Mark German on all things Apple and iPad.
Speaker 4: Time now for talking tech.
Speaker 3: First up Chinese self driving firm Momenta, but as far
Speaker 3: confidentially for an IPO in the United States calling to
Speaker 3: sources and it may happen as early as this year now.
Speaker 3: The company was founded in twenty sixteen by a team
Speaker 3: of AI engineers from Microsoft Research Asia, and its backers
Speaker 3: include General Motors and Tamasek Plus. The Biden Administration is
Speaker 3: opening applications for two hundred and eighty five million dollars
Speaker 3: in federal funding set up an institute focused on digital
Speaker 3: twin technology for the chip industry. This technology can leverage
Speaker 3: AI to help reduce development and manufacturing costs. And Jack Dawsey,
Speaker 3: when he's left the board of social networking service Blue Sky,
Speaker 3: which he of course, helped fund and popularize.
Speaker 4: A year ago, in the week of Coin of some
Speaker 4: regret over.
Speaker 3: The sale of Twitter to Elon musk Now, the Twitter
Speaker 3: co founder took to now x to tout his new
Speaker 3: philanthropic grants to open Internet protocols, which he described as
Speaker 3: quote freedom technology. In fact, he said that X is
Speaker 3: such a freedom technology. Now, let's turn our attention to
Speaker 3: the French tech company Atos now.
Speaker 4: It says it has received some.
Speaker 3: Four proposals to restore the group to financial health, including
Speaker 3: one it already rejected from main Capital.
Speaker 4: Now the firm is seeking to reach a deal by
Speaker 4: the end of.
Speaker 3: The month to inject fresh funds after clients have actually
Speaker 3: begun to hold off business.
Speaker 4: The latest bidders to throw their hats into the ring.
Speaker 3: Are check billionaire Danielle Kratinski and David Leani's one point,
Speaker 3: let's break it all downs, Benoir, butterlo is with us
Speaker 3: and Benoir just remind us this is a company that's
Speaker 3: sort of incredibly integraly in the tech space in France
Speaker 3: and ultimately the government was to make sure that it survives.
Speaker 8: Yeah, it's been a darling of the French tech scene
Speaker 8: and a major blue chip indexed company in France. It
Speaker 8: used to have a market capitalization of fifteen billion. It's
Speaker 8: now down to two hundred millions. It's got lots of
Speaker 8: problem and it's in indeed a key IT company. It
Speaker 8: has one hundred thousand employees ten billion of revenues last year,
Speaker 8: many key customers around the world. The IT for the
Speaker 8: Olympic Games for example upcoming in Paris this summer, but
Speaker 8: also key defense activities for just the French defense industry.
Speaker 8: It also has supercomputers that help the nuclear industries. So
Speaker 8: the French government, seeing the trouble of the company, finally
Speaker 8: decided to make a bid on that part of the company.
Speaker 8: The more strategic activities.
Speaker 4: Talk us through the rivals here.
Speaker 3: Some of the key players, as we mentioned, mentioned a
Speaker 3: couple of billionaires during their hasten the ring.
Speaker 8: Exactly. So one of the bids is actually from the
Speaker 8: bondholders of the company. They want to be center stage here,
Speaker 8: They want to be key in deciding who's going to
Speaker 8: be the winner, so they are open to partner with
Speaker 8: an anchor shareholder, and this could be either the check
Speaker 8: billionaire Daniel Kretinski. He's been known to buy sort of
Speaker 8: unloved assets assets that need structuring. He started in energy.
Speaker 8: He's been to retail in France. He already made a
Speaker 8: bid to buy retailer Casino. It was with a test
Speaker 8: the credit Fund. And he's teaming up with Attesta again
Speaker 8: to make a bid for Atos. And then there is
Speaker 8: David Laianis, a French entrepreneur. He has a much smaller
Speaker 8: IT company called one Point and he's teaming with Butler Industries,
Speaker 8: another investor in France to buy the company and in
Speaker 8: a plen that he's calling one. So it's sort of
Speaker 8: down to a race between these two.
Speaker 3: We'll see how the race continues. Renoir Blo, we thank
Speaker 3: you so much. Welcome back to Blue Mel Technology. I'm
Speaker 3: Caroline hired in New York. Let's get a quick check
Speaker 3: on these markets because it's a little bit of optimism
Speaker 3: out there. On the day we're managing to see a
Speaker 3: higher tuned than as that one hundred and six tens percent.
Speaker 3: After we see well perhaps a quietening in overall economic data,
Speaker 3: but a ramp up in discussion coming from the Federal Reserve,
Speaker 3: after we got a little bit more of a tamer
Speaker 3: comments coming out of Chair Power the market trying to
Speaker 3: even bait back in some of those rate cuts for
Speaker 3: the rest of the year. We're seeing the MSCI or
Speaker 3: country world in next on the higher side too. Really,
Speaker 3: we've seen money move into the European assets and indeed
Speaker 3: Asian on the day Bitcoin though.
Speaker 4: Not finding the love for the risk on feeling.
Speaker 3: We're down to sixty three, three and ninety two currently
Speaker 3: up down by just five ten percent though so small change.
Speaker 4: Let's move on and have a.
Speaker 3: Look at else was moving in the world of crypto
Speaker 3: and individual companies, because well, more broadly, we have seen
Speaker 3: the chip sector doing particularly well on the day, seeing
Speaker 3: in video Ramphi, I was seeing Micron getting an upgrade
Speaker 3: from analysts. That's on the higher side, leading the charge
Speaker 3: on the socks. We're seeing generally a veeling of getting
Speaker 3: back into these chip names ahead of arm this week.
Speaker 4: Remember the chip design.
Speaker 3: Company coming out with its earnings Apple on the downside, there,
Speaker 3: I'm afray Warren Buffett cutting his stake even though he
Speaker 3: poured on a lot of love for the company.
Speaker 4: All eyes in.
Speaker 3: The iPad unveil tomorrow and Robin Hood up a quarter
Speaker 3: of percent now coming off of some of its highs.
Speaker 3: Were training exactly eighteen on the nose Now's after the
Speaker 3: SEC is one that robin hood is crypto business faces
Speaker 3: potentially a lawsuit a so called Well's notice from staff
Speaker 3: of the SEC. I'spoke it down, woemgs Shnani Bassack any
Speaker 3: detail what it is the SEC doesn't like about robin
Speaker 3: Hood's playing crypto.
Speaker 9: Let's just talk about crypto in general, because what this
Speaker 9: was was a security stiling that robin Hood made that
Speaker 9: had about a two paragraph detailing that said they received
Speaker 9: the Wells notice, which knows essentially an intent for the
Speaker 9: SEC to sue against the use of its cryptocurrency business.
Speaker 9: So we don't know exactly all the details behind it,
Speaker 9: but we do have robin Hood's statement in return, which
Speaker 9: says that they firmly believe at Robinhood, their officials believe
Speaker 9: that the assets listed on our platform are not securities.
Speaker 9: We know that the SEC has been looking at exchanges
Speaker 9: and brokerages for the listing of what they deem as
Speaker 9: unregistered securities, but we also know that this has been
Speaker 9: a massive fight between many players in the industry as
Speaker 9: well as their fight against the SEC itself in this pursuit.
Speaker 3: I mean, yes, you can trade crypto on robin Hood,
Speaker 3: but most people think of it more of a stock play.
Speaker 3: I mean, it's interesting that game stops back front and
Speaker 3: center with the mean stock frenzy today. But how important
Speaker 3: is crypto to robin Hood?
Speaker 9: So look at the overall assets here, the assets under
Speaker 9: custody over at Robinhood at the end of last year,
Speaker 9: less than fifteen percent were crypto. But even though it's
Speaker 9: a small amount of the overall crypto play, the overall
Speaker 9: also the overall marketplay. To your point, they're known for
Speaker 9: equities and options trading for the most part. That same quarter,
Speaker 9: the last quarter of last year, you saw equities and
Speaker 9: options volumes kind of drop off here, they were negative,
Speaker 9: whereas crypto trading volumes had risen pretty meaningfully. So, even
Speaker 9: if it's a smaller base, the business has been rising
Speaker 9: very dramatically, and they report on Wednesday after market, and
Speaker 9: you would probably see them really benefiting from that crypto
Speaker 9: boom in the first quarter of this year. It is
Speaker 9: volatile revenue, it's a smaller part of their business, but
Speaker 9: it's been helping them attract new customers. With that said,
Speaker 9: investors have also shaken off these worries about the sec
Speaker 9: at other platforms as well, and again these fights have
Speaker 9: been long because companies have tended to sue back. Let's
Speaker 9: see how Robinhood handles the.
Speaker 3: Situation with you, and we look forward to their earnings
Speaker 3: as well. Shaniambasse, thanks so much for bringing us the latest. Meanwhile,
Speaker 3: let's go to the latest in LA. The Milkin Institute
Speaker 3: Global Conference has just kicked off this weekend in Beverly Hills,
Speaker 3: where finance chiefs, tech heavyweights, even in a mosca there
Speaker 3: gathering to discuss everything from your guess to AI of
Speaker 3: course geopolitics. Now, our own Wall Street Week host David
Speaker 3: Weston just sat down with armand Krishna IBM chairman and
Speaker 3: CEO to discuss well, the regulatory landscape for tech.
Speaker 4: Take listen.
Speaker 10: I think every regulator is worried about three topics, not
Speaker 10: just safety in regulation. They're wanted about innovation. They're worried
Speaker 10: about competition, and they're worried about safety and regulation. So
Speaker 10: when you take those three together, the AI alliance that
Speaker 10: open really come together to help you foment innovation. So
Speaker 10: I think that that actually helps the regulators to think
Speaker 10: about what is going on here. While I am caution
Speaker 10: there will be some guardrails that are always put. But
Speaker 10: in my experience, open technologies have always been safer and
Speaker 10: more secure than close technologies.
Speaker 1: Is one of the risks that maybe you're aviating with
Speaker 1: your emphasis on open architecture, that some of that i'll
Speaker 1: call them big guys get an advantage and really have
Speaker 1: an entrenched position.
Speaker 10: Well, I'll use the concern of a world garden. When
Speaker 10: you have a world garden, has those areas and technologies
Speaker 10: been more innovative or less innovative? All the said of
Speaker 10: all garden has always been less innovative, And so I
Speaker 10: think that it actually helps you create more competition. Does
Speaker 10: it avoid regulatory lock in off a certain one or
Speaker 10: two players?
Speaker 7: Likely?
Speaker 2: But isn't that good for all of us?
Speaker 1: Are you pro regulation?
Speaker 10: I am pro regulation as long as is it a
Speaker 10: light touch and allows innovation to happen. I absolutely would
Speaker 10: be pro regulation. If regulation tries to reduce innovation, I
Speaker 10: think that's the problem.
Speaker 1: What about the tsituation between between regulating the technology as
Speaker 1: opposed to regulating the uses. We had Sam parmasan or
Speaker 1: somebody you know well on who said he thinks regulate
Speaker 1: the uses, don't regulate that technology because that will impair innovation.
Speaker 10: Always How can you regulate the technology when you don't
Speaker 10: even know where the technology can go? Two years ago,
Speaker 10: who had heard of a large language model. If you
Speaker 10: come out with our technique instruct Lab six months ago,
Speaker 10: nobody had heard of that, there will be.
Speaker 2: Another one, and another one and another one.
Speaker 10: So I think triger regulated technology implies that the regulator
Speaker 10: and the policy forks believe no more innovation can happen.
Speaker 4: I think that's a bad bet to make.
Speaker 3: Of course, the CEO of IBM there a Vin Krishna
Speaker 3: with our own David Weston. Meanwhile, coming up, look, we're
Speaker 3: going to be joined by Andreill founder Harma Lucky from
Speaker 3: an exclusive interview on the company's brand new suite of
Speaker 3: AI powered products coming out next This is really big technology.
Speaker 3: Andreil is announcing a brand new range of AI powered
Speaker 3: defense products, now the Pulsar family of AI enabled Electromagnetic
Speaker 3: warfare or EW systems. They basic expand on the existing
Speaker 3: EW systems by not only countering known threats with pre
Speaker 3: programmed techniques, but by leveraging you guessed artificial intelligence to
Speaker 3: detect both known and new threats. Got to break down
Speaker 3: what this really means, ANDREW founder Palma Lucky joins us
Speaker 3: NOW and Palmer.
Speaker 4: A key question is how is this used? How is
Speaker 4: this different?
Speaker 2: Well, first of all, note that Pulsar is already being
Speaker 2: used by US military customers across multiple continents, multiple AORs,
Speaker 2: on fixed sites, on mounted vehicles, and on aircraft. So Pulsar,
Speaker 2: while we're announcing it for the first time today ahead
Speaker 2: of Softweek, it's actually been in existence for years. This
Speaker 2: is something we haven't been able to talk about, but
Speaker 2: we've been working on for a long time. It's an
Speaker 2: AI powered electronic warfare tool. They can understand what's going
Speaker 2: on in the RF domain and then take measures to
Speaker 2: accomplish your aims within the RF domain, so jamming, hacking, spoofing, controlling,
Speaker 2: identifying things, countering those things, making sure that your own
Speaker 2: electronic systems maintain their functionality. And it's able to do
Speaker 2: that extremely fast because it's powered by Lattice, our AI
Speaker 2: system that powers all and or all products. It's able
Speaker 2: to do what would have previously taken a team of
Speaker 2: electronic warfare specialists and a build full of equipment weeks
Speaker 2: or months to accomplish in just seconds.
Speaker 3: So to that point and power, I of course preface
Speaker 3: all of this from a political perspective, but from a
Speaker 3: personal perspective. Right now, it is an emotional time when
Speaker 3: we're discussing war, when we're discussing warfare, so we're sensitive
Speaker 3: to that. But where at the moment is this being
Speaker 3: used in a different kind of way. You were just
Speaker 3: talking about how it's already been basically been new since
Speaker 3: twenty twenty.
Speaker 4: That's the first time you can discuss it.
Speaker 3: How has artificial intelligence change the pace with which you
Speaker 3: can iterate? But also things are changing within warfare well.
Speaker 2: I started an underall because I was concerned with the
Speaker 2: United States and our allies around the world. We're losing
Speaker 2: our technological edge to some of our near peers and
Speaker 2: even now in many areas peers, and I think that
Speaker 2: how things have been playing out in Ukraine and around
Speaker 2: the world have really proven that out AI is changing
Speaker 2: the game in a lot of ways because it allows
Speaker 2: you to deploy large numbers of systems in a much
Speaker 2: more intelligent, much more useful way than we've ever been
Speaker 2: able to do before with even remotely piloted systems, and
Speaker 2: been focused on AI since the beginning of our company
Speaker 2: about seven years ago. You'll notice that our name and
Speaker 2: or all industries is you know, the acronym is AI,
Speaker 2: and that's for a reason we were we believe that
Speaker 2: artificial intelligence was going to be changing the nature of
Speaker 2: warfare long before a lot of people were paying any
Speaker 2: attention to AI. I remember when we were starting our
Speaker 2: company and it was hard to raise money for AI companies.
Speaker 2: People weren't taking it seriously. They saw it as kind
Speaker 2: of a science fiction gem, but not something that was real.
Speaker 2: And unfortunately the reality of the world today has forced
Speaker 2: people to start paying more attention to what AI can
Speaker 2: do on the battlefield.
Speaker 3: People paying attention a government they have to are the
Speaker 3: defense sector in particular, and I mean I speak to
Speaker 3: the fact that the Air Force in the United States
Speaker 3: has got with the program, understood the impact that you're making,
Speaker 3: and ultimately what.
Speaker 4: Brought you on.
Speaker 3: You're now doing a program you're sort of seen as
Speaker 3: a new type, a new force of defense tech startup.
Speaker 3: You actually call it a non traditional defense company. Can
Speaker 3: you talk us through the Collaborative Combat Aircraft program? Basically,
Speaker 3: this is about aircraft that fly alongside those that are manned.
Speaker 2: Sure. I mean this is an area where the US
Speaker 2: Air Force and Secretary Kendall deserve a lot of credit
Speaker 2: for their vision. They want to deploy AI powered aircraft
Speaker 2: at scale alongside manned aircraft on a timeline that is
Speaker 2: relevant to the conflicts that we are trying to deter
Speaker 2: and that have the ranges and capabilities that we need
Speaker 2: to be meaningful to the adversaries that we might have
Speaker 2: to fight. I'll just name the name. It's China. CCA.
Speaker 2: The Collaborative Combat Aircraft Program is the program to develop
Speaker 2: and then build over one thousand ccas that are going
Speaker 2: to fly alongside manned aircraft. Loyal wingman, they've loyal wingman,
Speaker 2: they've been called andre All just beat out Lockheed Martin,
Speaker 2: Northrop Grumman, and Boeing for a slot on the CCA program.
Speaker 2: We're going to be using that slot to build production
Speaker 2: representative aircraft, not prototypes, but production representative aircraft that are
Speaker 2: going to be ready to go to scale at manufacturing
Speaker 2: if we can hit all of our hit all of
Speaker 2: our milestones, and proved that we are as good at
Speaker 2: building airplanes as we are at building AI.
Speaker 4: You went there and you mentioned China.
Speaker 3: I'm interested as to therefore where you will manufacture and
Speaker 3: ultimately see deploying of these particular autonomous fighter jets.
Speaker 2: Well, they're going to be deployed right here or built
Speaker 2: right here in the United States. Where they're going to
Speaker 2: be deployed, that's up to our customer. I don't have
Speaker 2: a ton of ton of insight into where exactly they
Speaker 2: might do that, though I've got some ideas.
Speaker 4: I'm interested where you see.
Speaker 3: Therefore, at the moment, the US taking leadership back or
Speaker 3: do you still worry since splesh you the founding of Andreille,
Speaker 3: whether you do think that US has reasserted itself become
Speaker 3: again the leader.
Speaker 2: I think that we have a long way to go
Speaker 2: in certain areas. But the really powerful thing is that
Speaker 2: we've recognized the areas where we have problems. I think
Speaker 2: people have been pulled out of their slumber. They realize
Speaker 2: that there's areas we can move much faster. We can
Speaker 2: do things in not years that just were not possible
Speaker 2: to do within the bureaucracy before, within the previous construct
Speaker 2: of how we're supposed to get things done. I mean,
Speaker 2: the Air Force taking a bet on andrel on CCA
Speaker 2: is just one of many examples of people realizing that
Speaker 2: business as usual is not something that we have time for,
Speaker 2: not in the modern timeline, not in the modern threat environment.
Speaker 3: But what about the competition from the Boeings, from the Lockeys.
Speaker 3: Are they not getting with the programs, starting up their
Speaker 3: own internal startups or indeed making acquisitions.
Speaker 2: You know, I don't feel like those guys are really
Speaker 2: the competition. I feel a bit of a kinship with them. Look,
Speaker 2: I'm not running my business the same way that they're
Speaker 2: running their business. But at the end of the day,
Speaker 2: we're all trying to protect the same country. We're all
Speaker 2: trying to protect the same values more or less here
Speaker 2: and around the world. I'm actually much more worried about
Speaker 2: the competition from Iran. I'm much more worried about the
Speaker 2: competition from Russia and China. We've had systems in Ukraine
Speaker 2: since the second week of the war, and the innovation
Speaker 2: that I've seen coming out of Russia, China and Iran
Speaker 2: as kind of a coalition of very technologically advanced adversaries,
Speaker 2: it worries me a lot more than the competition that
Speaker 2: I have here in the US. There's things that I'm
Speaker 2: going to build that I do better than Boeing, for example,
Speaker 2: and there's things that Boeing is going to build that
Speaker 2: where they're better than me. And I recognize that, and
Speaker 2: I think we're doing a pretty good job of finding
Speaker 2: how we can continue working together with all of these
Speaker 2: different companies, and all these companies that I just mentioned
Speaker 2: us beating on the CCA program, we're working with all
Speaker 2: of them in some capacity on other programs. It's actually
Speaker 2: a little less cutthroat than people would think because of
Speaker 2: that very strong shared sense of mission that you see
Speaker 2: in the United States National Security apparatus.
Speaker 4: And your aligning incentives with allies as well.
Speaker 3: And we note, of course, an autonomous sub that you've
Speaker 3: been working with well Australia and actually sort of co
Speaker 3: developing and keeping on pace unheard of kind of in
Speaker 3: the defense contract space of actually being on time and
Speaker 3: in budget.
Speaker 4: But where else might you manufacture? Might you co develop?
Speaker 3: It is interesting that one of our own reporters highlighting
Speaker 3: that the VP of Taiwan was speaking at a US event,
Speaker 3: would there ever be manufacturing in Taiwan?
Speaker 2: Well, you're right on the Ghost Shark program. That's an
Speaker 2: autonomous robotic submarine the size of a school bus that
Speaker 2: we've been developing with the Royal Australian Navy, and we
Speaker 2: actually just delivered the first submarine a year ahead of
Speaker 2: schedule and on budget, which, as you mentioned, is rare.
Speaker 2: It's practically unheard of. There are other areas where we're
Speaker 2: looking to expand. I can't talk about the specifics of it,
Speaker 2: but I can tell you that I'm in Taiwan frequently.
Speaker 2: I was just there a few months ago. I'm going
Speaker 2: back in just a few weeks. Taiwan is obviously one
Speaker 2: of the key technological partners of the United States, especially
Speaker 2: in the region. It's critical for United States military security
Speaker 2: that Taiwan remains free and independent and democratic. But it's
Speaker 2: also very important for our economy. I would say there
Speaker 2: might not be another country in the world that is
Speaker 2: really underpinning so much of our way of life when
Speaker 2: it comes to semiconductors and all of the things they
Speaker 2: power throughout our consumer and industrial and defense economy.
Speaker 3: You talk about how things have changed, certainly from the
Speaker 3: Ministry of Defense perspective, but what's also changing is the politicization,
Speaker 3: ultimately of companies that are working within warfare, and we
Speaker 3: certainly see that from protests here among students. How have
Speaker 3: you been feeling angrel is being embraced still by the
Speaker 3: private sector from a money perspective, are you raising money.
Speaker 4: Is it easy to do so? Are you looking to
Speaker 4: go public?
Speaker 2: Well, Luckily, I think that there is a very big
Speaker 2: golf and sophistication around international affairs between the types of
Speaker 2: people who are funding ANDERL and the types of people
Speaker 2: who are skipping class to camp out on campus on campuses,
Speaker 2: I think that there's a lot of people who recognize
Speaker 2: that the United States should have the best technology. The
Speaker 2: only way to credibly deter warfare is to have a
Speaker 2: backstop of credible threat of violence. There is no way
Speaker 2: that you can deter every adversary with the threat of
Speaker 2: a sternly warded letter or this idea that sanctions are
Speaker 2: going to cripple their economy, especially in areas where we
Speaker 2: don't even have the leverage to make that true. I
Speaker 2: think that on the funding side, where we don't have
Speaker 2: any problems, We've got a lot of money in the bank,
Speaker 2: we have a very healthy revenue pipeline. We're on the
Speaker 2: path to being a publicly traded company, and a lot
Speaker 2: of people are really excited about that because ANDROL, in
Speaker 2: addition to building tools that keep our men and women
Speaker 2: on the front line safe, which is something people want
Speaker 2: to be invested in, is also just a good, credible
Speaker 2: business with a really good roadmap that's doing well on
Speaker 2: our existing products, and it's a healthy pipeline of future products.
Speaker 2: We just announced Pulsar, we just showed off some other
Speaker 2: new products like Mencex. We're going to be announcing products
Speaker 2: through the rest of the year. We've got about a
Speaker 2: dozen products that we've publicly announced. We've got another dozen
Speaker 2: that are not even publicly talked about yet, and they're
Speaker 2: of a similar caliber. And I think that our investors
Speaker 2: recognize that perspective and existing I.
Speaker 3: Look forward to you coming back and talking about it
Speaker 3: when they can talk about it publicly but quickly. IPO
Speaker 3: twenty twenty four or twenty twenty five.
Speaker 2: Well, I can almost promise you it won't be twenty
Speaker 2: twenty four. If it was, we'd already have to be
Speaker 2: way down that path. Anderal wants to be a publicly
Speaker 2: trade company for a variety of different reasons. It's something
Speaker 2: that we've wanted to do since the very beginning. You know,
Speaker 2: this is my second company. You might know I started
Speaker 2: a company called Oculus VR when I was nineteen. I
Speaker 2: sold that to Facebook for a few billion dollars. I
Speaker 2: was there for a few years before I was fired,
Speaker 2: and I've decided that I want to go on a
Speaker 2: different path this time, and luckily that aligns with what
Speaker 2: our customers want us to do, what our investors want
Speaker 2: us to do, and I think what the American people
Speaker 2: want to do where they want to be able to
Speaker 2: buy into these companies, not have them operate as private
Speaker 2: entities beyond reach and beyond control.
Speaker 3: I'm a lucky great to sit down with you. Thank you,
Speaker 3: andrewl Founder. This is bruly met technology.
Speaker 2: That's real eating gees and if I sephony of phrases.
Speaker 3: What a song simp Simplicity's delight and was created with
Speaker 3: software from Suno, one of the new crop of AI
Speaker 3: startups focused on basically building tools to automate the music
Speaker 3: making process. But while the AI music hera is creeping
Speaker 3: upon us, not everyone is a fan.
Speaker 4: Just break it all down.
Speaker 3: I believe makes Rachel Mets, who actually is the joy
Speaker 3: behind that.
Speaker 4: Song that you just heard? And Rachel, when am I
Speaker 4: gonna be able to stream it on Spotify?
Speaker 3: And ultimately that is the issue here right that a
Speaker 3: lot of AI made songs are.
Speaker 4: Kind of taking away the business of real artists.
Speaker 11: Who I think it's a little bit it's a little
Speaker 11: bit early to say that definitively, but that is a
Speaker 11: concern absolutely, both of artists that see the technology developing
Speaker 11: of record labels. You know, there are a lot of
Speaker 11: different stakeholders in the music industry, and as AI becomes
Speaker 11: better and better at making music, they have a lot
Speaker 11: of concerns about this that they're increasingly expressing.
Speaker 10: For sure.
Speaker 3: What's interesting is perhaps use Footshina light on Souno, but
Speaker 3: also Udio, which is actually backed by Andrewson Horrace, but
Speaker 3: also some players in the game. I think a common
Speaker 3: is one of the as one of the money behind it,
Speaker 3: as well as United Masters that Steve Stout, So they
Speaker 3: do have backing of some players within music.
Speaker 4: But it looks as though.
Speaker 3: These companies are trying to ensure that you're not able
Speaker 3: to say please make me a song in well the
Speaker 3: essence of Billie Eilish. They are trying to be clever
Speaker 3: about the way in which we basically copy or don't.
Speaker 11: Yeah, I mean they want to position themselves as something
Speaker 11: that anybody can use and I am anybody and I
Speaker 11: can use them to make music. And it is true
Speaker 11: that a very quick process or you can make it
Speaker 11: as long as complicated as you want.
Speaker 2: You can bring your own music to it. So it's
Speaker 2: for anybody.
Speaker 11: It's someone who's a professional musician who wants to augment
Speaker 11: the music making process, or for someone who just wants
Speaker 11: to type in a quick prompt and get in a
Speaker 11: song about the simple pleasures of eating cheese or any topic.
Speaker 2: Really.
Speaker 11: Yes, there are some people in the music industry, such
Speaker 11: as Common. Also will I Am was another person who
Speaker 11: put some money into UDO. So it'll be interesting to
Speaker 11: see where musicians sort of you know, come in in
Speaker 11: the coming months and years, if they're interested in participating
Speaker 11: with these companies and using them, or if they say, hey,
Speaker 11: wait a minute, I don't want you training on my music,
Speaker 11: or maybe a little bit of both.
Speaker 3: I assume, as we've seen with image generation, as we've
Speaker 3: seen with video very briefly Rachel, lawsuits likely.
Speaker 4: To happen here.
Speaker 2: I will yes, I would expect. So.
Speaker 11: I spoke to somebody in the music industry and they
Speaker 11: said that was one of the things they're expecting to
Speaker 11: see happen. They're expecting to see some deals between companies
Speaker 11: and that are building this music making software and record labels,
Speaker 11: and maybe other stakeholders in the coming months, but also
Speaker 11: perhaps some lawsuits. And as we know, the music industry
Speaker 11: has been quite litigious. It has already involved in some
Speaker 11: lawsuits regarding other types of generative AIA companies.
Speaker 3: And look you MG just striking that deal with TikTok,
Speaker 3: looking at how to protect artists versus AI.
Speaker 4: It is going to be something we unpack with your help. Rachel.
Speaker 4: We thank you so much. Rachel Metz. How does it for?
Speaker 4: This in edition and Bloomberg Technology. Don't forget to check
Speaker 4: out our podcast. This is a Bloomberg