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Speaker 1: Good morning.

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Speaker 2: I'm Brian Curtiz and I'm Doug Krisner. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: Well, the OPEK Plus meeting that had been scheduled for

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Speaker 1: this weekend will not happen now until November thirtieth. Delegates

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Speaker 1: sided tensions with Saudi Arabia over oil production levels and

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Speaker 1: quotas in Africa. The Saudis have been cutting an additional

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Speaker 1: one million barrels a day since July and they want

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Speaker 1: other OPEC members to cut more. We heard from Pierre

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Speaker 1: Aduran with Oduran Capital Management.

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Speaker 3: I think the Soudist would want to see higher policies.

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Speaker 3: But when you look at coman to OPEK production or

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Speaker 3: OPEK Plus production or exports over the last months or two,

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Speaker 3: they have been the same as the abage of the

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Speaker 3: last year. So despite all the announcements of cutz OPEK

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Speaker 3: plus as, the group has not cut much of production

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Speaker 3: at all since last year.

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Speaker 1: Pierre Aduran of Aduran Capital, crude oil, by the way

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Speaker 1: is down about eighteen percent from its September peak, and

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Speaker 1: as you heard earlier, WTI now about seventy six dollars

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Speaker 1: seventy five cents sa barrel.

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Speaker 2: He's back after intense pressure from investors, Sam Altman is

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Speaker 2: returning a CEO of open Ai. Bloomberg's Alex Webb tells

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Speaker 2: us this is a win for Microsoft.

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Speaker 4: One of the reasons Sam Warton was ousted was concerned

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Speaker 4: that he was prioritizing the commercial impulses of the company

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Speaker 4: over what actually is mandate mainly to improve and this

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Speaker 4: genuinely is the wording. It is to work for the

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Speaker 4: benefit of all humanity. Now Microsoft is almost certainly going

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Speaker 4: to be getting great oversight, greater sway at a board

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Speaker 4: level over what happens at OpenAI. The company is therefore

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Speaker 4: going to be run ever so slightly more in the

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Speaker 4: interest of Microsoft, not necessarily in the interest of all humanity.

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Speaker 2: That is Bloomberg's Alex web Now we are hearing that

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Speaker 2: Altman has also agreed to an internal investigation at OpenAI.

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Speaker 2: It will look into the conduct that led to his dismissal.

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Speaker 2: OpenAI's board will also go through a serious overhaul. The

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Speaker 2: initial board will be led by Brett Taylor. He is

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Speaker 2: a former co CEO at Salesforce. Other directors Larry Summers,

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Speaker 2: former US Treasury secretary, and Adam DiAngelo, an existing OpenAI

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Speaker 2: board member who interestingly voted to oust Altman. He will

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Speaker 2: remain Brian, and I have.

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Speaker 1: To say, I'm really curious what happens to Emmitt Sheer.

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Speaker 1: It hasn't been mentioned in some of these stories, and

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Speaker 1: we've got I mentioned it now because I'll put that

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Speaker 1: question to man Deep Singh, who's coming up in a

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Speaker 1: few moments. Bloomberg Intelligence senior tech industry analyst Mandeep if

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Speaker 1: you're listening, tell me what happens to Emmitt Sheer. Now,

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Speaker 1: all right, let's take a look at this one. American

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Speaker 1: and Chinese officials are working to bring back more passenger

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Speaker 1: air travel between the world's two largest economies. That story

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Speaker 1: from Bloomberg's and Kates.

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Speaker 5: The two had what are being described as in depth

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Speaker 5: discussions on significantly increasing flights and enhancing the civil aviation

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Speaker 5: sectors in both China and the US. Air China has

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Speaker 5: already resumed its flights from Beijing to Washington, and increased

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Speaker 5: service to Los Angeles will begin next week. Flights between

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Speaker 5: the US and China average three hundred and forty a

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Speaker 5: week before COVID nineteen lockdowns, and we're slow to return

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Speaker 5: to normal after pandemic controls were lifted in Washington and

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Speaker 5: Kate's Bloomberg Radio.

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Speaker 2: Chinese property developers Country Garden and Sino Ocean Group have

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Speaker 2: been put on a list of fifty developers eligible to

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Speaker 2: receive financial support from the government. Bloomberg's David and Glace

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Speaker 2: has more from Hong Kong.

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Speaker 6: We reported earlier this week that China is drafting a

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Speaker 6: list to guide banks as they assist the property industry.

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Speaker 6: Regulators are set to finalize the roster and distribute it

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Speaker 6: to financial institutions within days. The soul called white list

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Speaker 6: identifies firms that would get better access to loans, debts,

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Speaker 6: and also equity financing. The inclusion of Country Garden and

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Speaker 6: Sino Ocean indicates that regulators are shifting their stands toward

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Speaker 6: private developers. Another builder that has missed debt payments, Saphie Holdings,

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Speaker 6: is also said to be on the list. The scope

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Speaker 6: of funding available and the long term implications for creditors

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Speaker 6: and shareholders remains unclear. In Hong Kong, I'm David Ingless Bloomberg.

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Speaker 1: Radio, and following on from that, China's Parliament says that

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Speaker 1: the country's banks should step up funding for property developers.

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Speaker 1: Bloomberg's Joan Wong has the story from Hong Kong.

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Speaker 7: The National People's Congress that the banks need to do

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Speaker 7: their part in reducing the risk of additional defaults. Lomacker

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Speaker 7: said it would ensure the completion of projects and that

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Speaker 7: of what is what they called paniced expectations of households.

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Speaker 7: The call comes as regulators cite some fifty property developers

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Speaker 7: who've been earmarked for a range of extra financing support.

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Speaker 7: The comments by the NPC Standing Committee members at pressure

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Speaker 7: on the PBOC to do more to support property in

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Speaker 7: Hong Kong, Join Wang Bloomberg Radio.

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Speaker 2: Alli Baba founder Jack Ma is walking back plans to

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Speaker 2: trim his stake in the company. This comes as Ma

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Speaker 2: has not sold a single share in Ali Baba now.

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Speaker 2: An internal memo from the company viewed by Bloomberg News

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Speaker 2: indicated the stock price had not reached the level Mob

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Speaker 2: was seeking. Mob's plans to sell ten million shares on

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Speaker 2: November twenty first became public last week visa via regulatory filing,

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Speaker 2: but the disclosure disclosure, I should say, coincided with the

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Speaker 2: company announcing it scrapped plans to spin off its cloud business. Now.

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Speaker 2: The combined effect of this news was a twenty two

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Speaker 2: billion dollar drop in the market value of Ali Baba

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Speaker 2: in a single day.

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Speaker 1: Time now for Global News. A car explosion near Niagara

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Speaker 1: Falls has closed the US Canada border crossings in some

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Speaker 1: four places, and Baxter is covering that story and as

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Speaker 1: the rest of the news from the nine to sixty

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Speaker 1: news room in San Francisco.

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Speaker 8: Ed, Yeah, exactly right, Brian. The explosion on one of

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Speaker 8: four bridges in the area that's won the Rainbow Bridge.

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Speaker 8: Two people killed. Authorities are being very careful how they

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Speaker 8: characterize it. Bloomberg's Attawa Bureau Chief Laura Dylan Caine is here.

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Speaker 9: It has not been confirmed to be an act of terrorism.

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Speaker 9: We don't really know the motive just yet, but it

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Speaker 9: is being treated as though it was intentional and unless

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Speaker 9: proven otherwise. So everybody is in a state of high

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Speaker 9: alert and the Prime Minister has described it as a

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Speaker 9: very serious incident, one that he is coordinating closely with

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Speaker 9: American authorities on.

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Speaker 8: And this is Prime Minister Justin Trudeau.

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Speaker 10: There are four border crossings that are right now closed,

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Speaker 10: a Rainbow Bridge, Whirlpool Bridge, Queenston Bridge, and Peace Bridged.

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Speaker 10: Additional measures are being contemplated and activated at all border crossings.

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Speaker 8: Across the country, and Dominic LeBlanc, Canadian public Safety minister,

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Speaker 8: says securities being tightened as well throughout the country.

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Speaker 11: Any time a piece of infrastructure as important to Canada

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Speaker 11: and the United States, like a border crossing, sees this

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Speaker 11: kind of violent circumstance, it's a source of concern for

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Speaker 11: the government of Canada and for the United States. So

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Speaker 11: we're taking this circumstance very seriously.

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Speaker 8: And in the US, FBI is investigating. President Biden has

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Speaker 8: been briefed, he says. In Bloomberg's Kate Hunter says it

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Speaker 8: could become a border issue when Congress gets back session.

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Speaker 5: Border to the north with Canada.

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Speaker 9: That's always kind of been viewed as, you know, a

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Speaker 9: little bit less risky and hasn't had as much focus

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Speaker 9: on trying to secure.

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Speaker 8: That yeap, So it's been the southern border. Now she

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Speaker 8: says it may go north as well. Now Buffalo Airport

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Speaker 8: has halted air traffic. New York Governor Kathy Hockel has

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Speaker 8: made her way to the scene again. Border crossings are

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Speaker 8: closed near Niagara Falls between the US and Canada. Israel's

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Speaker 8: national security advisor says ceasefire talks are continuing and that

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Speaker 8: there will not be a hostage release until the at

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Speaker 8: least Friday. Meanwhile, Israel's Prime Minister Benjamin Thatt Yahoo, addressing

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Speaker 8: the nation, says the ceasefire does not mean the war

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Speaker 8: against Amases over netn Yahoo here through a translator, the

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Speaker 8: war continues.

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Speaker 12: The war will continue until we achieve all of our

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Speaker 12: goals to eliminate Hamas, to return all our hostages, to

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Speaker 12: ensure that the day after Hamas Ganza will no longer

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Speaker 12: be a threat to Israel. There will be no element

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Speaker 12: in it that supports terry them.

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Speaker 8: That's again that Nyahu threw a translator. The US is

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Speaker 8: waiting for official confirmation of exactly who the hostages are

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Speaker 8: and when their schedule will be released by Hamas National

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Speaker 8: Security Advisor Jake Sullivan, there are.

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Speaker 13: Nine US citizens and one Green cord holder who are missing.

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Speaker 13: We don't know for certain that all ten are still alive,

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Speaker 13: and we've been honest about that. What we know and

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Speaker 13: what we don't know. We know that among those ten

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Speaker 13: three are women and children, two women, one child.

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Speaker 8: And women and children are those being released. Of course.

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Speaker 8: In North Korea's defense ministry has announced a decision to

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Speaker 8: revive all military actions against South Korea and revoke measures

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Speaker 8: to reduce tensions and conflicts in the region, those that

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Speaker 8: were agreed to under the Inter Korean Military Accord. Global

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Speaker 8: News twenty four hours a day and whenever you want

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Speaker 8: it with Bloomberg News Now in San Francisco. I'm Hat

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Speaker 8: Baxter in. This is Bloomberg.

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Speaker 1: Well, let's get to our guest men, Deep Sing Bloomberg

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Speaker 1: Intelligence senior tech industry analyst, joining Paul Allen and myself

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Speaker 1: to take a closer look at open Ai. Mandy, thanks

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Speaker 1: very much for joining us. Perhaps you heard me mention

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Speaker 1: this is a great story for Sam Altman. It seems

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Speaker 1: that he really did want to go back there. It's

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Speaker 1: great for open Ai if you look at the response

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Speaker 1: from all those employees, and it appears to be great

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Speaker 1: for Microsoft. I am curious, though, what happens to Emmett Sheer,

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Speaker 1: who used to be at Twitch and was holding the

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Speaker 1: CEO position as this happened.

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Speaker 14: Well, it looks like, you know, the employees of open

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Speaker 14: Ai had no confidence in any decision that the old

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Speaker 14: board of open Ai made, and since Emmittscher was appointed

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Speaker 14: by that old board, I guess it's not a surprise

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Speaker 14: that you know, obviously he was CEO for a very

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Speaker 14: short time and we're going back to Sam Altman.

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Speaker 15: But look, I mean, given what transpired over the course

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Speaker 15: of the last one week, I don't think it's a

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Speaker 15: win for anyone. I mean, honestly, this was the best

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Speaker 15: outcome for Microsoft given the situation, and they handled it well.

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Speaker 15: But you have to ask yourself why did it happen

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Speaker 15: in the first place. There isn't a lot of transparency

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Speaker 15: around that. Yes, there will be an independent investigation, but

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Speaker 15: there are still a lot of questions that need to

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Speaker 15: be answered. And I think Microsoft definitely will have a

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Speaker 15: bigger say going forward, but probably they will want to

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Speaker 15: build their own LLM and you know, not be too

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Speaker 15: dependent on open Ai for their Azure Cloud product or

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Speaker 15: their copilots because tomorrow, if something else happens, you know,

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Speaker 15: talent leaving open Ai, that's a big risk for Microsoft.

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Speaker 16: Yeah, looking back and now seeing how it all ended up,

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Speaker 16: it all just feels so completely unnecessary. And as you say,

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Speaker 16: there's not going to be investigation, sam Olten is going

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Speaker 16: to be a part of that. So what do we

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Speaker 16: know so far and what's on answered that this investigation

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Speaker 16: is going to seek to bring into the light.

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Speaker 15: Well, so clearly, you know, the old board wasn't in

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Speaker 15: sync with Sam Altman's strategy, and you know there were

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Speaker 15: some safety concerns around generative AI. And look, that's not new.

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Speaker 15: Every company that's building a large aguage model fuels there

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Speaker 15: are guardrails that need to be put in place. In fact,

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Speaker 15: Anthropic was started by ex OpenAI employees and they have

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Speaker 15: this constitution concept to build those safeguards. So there is

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Speaker 15: a lot that needs to happen. And I'm interested in

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Speaker 15: how regulators view this because this is not an outright acquisition.

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Speaker 15: At the same time, Microsoft has a bigger say in

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Speaker 15: how OpenAI is run. They are a forty nine percent holder,

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Speaker 15: and I would be curious to really see how regulators

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Speaker 15: view this thing, because this is as good as an acquisition,

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Speaker 15: you know, in terms of how my Microsoft can influence

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Speaker 15: future development within open Ai.

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Speaker 1: When you see the board as it's newly constituted with

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Speaker 1: Brett Taylor, the former see co CEO of Salesforce, and

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Speaker 1: Larry Summers on it, how does that sit with you?

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Speaker 1: Does that look like that's an improvement?

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Speaker 15: That is an improvement, but it's just three members. And yes,

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Speaker 15: there is some discussion about expanding the number of board seats,

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Speaker 15: so there will probably be new members in the board

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Speaker 15: and it will be interesting to see if Microsoft does

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Speaker 15: appoint someone from the company to the board. But there's

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Speaker 15: no doubt that microsoft Is interests are closely intertwined with

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Speaker 15: open AIS because all their products are built around open AI.

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Speaker 15: And you know, when you look at other hyperscalers like Amazon,

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Speaker 15: like Google, they have their own llms. Yes, they host

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Speaker 15: other llms you know, on their cloud services, but their

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Speaker 15: products are driven by their own llms. So clearly Microsoft

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Speaker 15: has taken a different approach with regards to their large

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Speaker 15: anguage models, and that's why, you know, they had to

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Speaker 15: fix this situation, which I think they did quite well.

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Speaker 14: Well.

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Speaker 16: Sam Alpin's not on the boards or will he be.

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Speaker 15: I would be very surprised if he's on the board,

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Speaker 15: And that's another thing, right, So CEO not being on

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Speaker 15: the board kind of makes a situation somewhat unstable from

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Speaker 15: Sam Altman's perspective going forward, and clearly, you know, some

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Speaker 15: of the people may end up leaving who didn't like

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Speaker 15: his approach. So that's a risk, you know, with something

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Speaker 15: like large and with models, which is a very competitive space,

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Speaker 15: there are other companies that are trying to improve their

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Speaker 15: models constantly, and if Opening Eye doesn't ship their new

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Speaker 15: products GPD five quickly, there is a chance that you know,

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Speaker 15: someone else will be ahead.

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Speaker 1: Mandeep, could you clear up something for us as I

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Speaker 1: understand it, Microsoft did not put the ten billion dollars

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Speaker 1: into open Ai simply these are credits for use of

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Speaker 1: Azure in the cloud. Can you explain that to us

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Speaker 1: how that works?

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Speaker 15: Absolutely, that's a great point. So when Microsoft announced this investment,

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Speaker 15: the intent was, you know, open Ai should use Microsoft

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Speaker 15: Azure as the cloud platform to train their large angrid models.

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Speaker 15: So in a sense, Microsoft was offering all the GPU capacity,

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Speaker 15: OpenAI was the one training the model. They had all

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Speaker 15: the data and and that was the intent. Now gradually

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Speaker 15: they standardized everything on you know open Ai, their search

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Speaker 15: and copilence.

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Speaker 1: Mandy, thanks so much, very very nice. Have you the

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Speaker 1: programmed Mandy seeing Bloomberg Intelligence, senior tech industry analyst with

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