WEBVTT - More Chip Curbs on China and Joby Shares Pop 0:00:01.760 --> 0:00:05.440 From markhard of where Innovation, Money and Power Collie in 0:00:05.519 --> 0:00:07.040 Silicon Valley, NBN. 0:00:07.360 --> 0:00:11.400 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.880 --> 0:00:28.720 I met Ludlow in San Francisco. Caroline hies off today. 0:00:28.800 --> 0:00:32.120 This is Bloomberg Technology coming up on the program in video. 0:00:32.240 --> 0:00:35.160 Takes a hit as the US plans more AI chip 0:00:35.200 --> 0:00:38.479 curbs for China. Will discuss the potential impact on the 0:00:38.520 --> 0:00:42.360 semiconductor market, and we'll stick with artificial intelligence and go 0:00:42.479 --> 0:00:45.519 live to the Collision conference in Toronto for a sit 0:00:45.600 --> 0:00:49.840 down conversation with Colin Murdock of Google DeepMind plus shares 0:00:49.920 --> 0:00:54.080 of electric air taxi company Joby Surge after receiving relate 0:00:54.120 --> 0:00:55.560 regulatory approval to. 0:00:55.560 --> 0:00:57.040 Expand test flights here in the US. 0:00:57.080 --> 0:01:01.320 We have the exclusive conversation with the CEO later this 0:01:01.600 --> 0:01:04.119 hour talks about the chip sector. The Wall Street Journal 0:01:04.160 --> 0:01:08.399 reporting that the US is considering tightening curbs on the 0:01:08.400 --> 0:01:12.559 export of chips to China to increase lower power chips. 0:01:12.600 --> 0:01:14.959 This is in the context of AI, of course, of 0:01:15.000 --> 0:01:17.679 which Nvidia has been the real leader in this space. 0:01:17.760 --> 0:01:19.520 It is off by nine tens to one percent. Other 0:01:19.520 --> 0:01:23.479 players will lower AMD actually now higher half a percentage point. 0:01:23.560 --> 0:01:25.959 Let's find out what's going on. Let's understand the. 0:01:25.880 --> 0:01:29.680 Impact of this industry with Bloomberg Intelligence analysts Paula Penkell. 0:01:29.920 --> 0:01:31.039 So that's the reporting. 0:01:31.200 --> 0:01:35.600 The US is going to tighten the restrictions to include 0:01:36.040 --> 0:01:39.080 sort of lower powered chips that Nvidia have moved to 0:01:39.240 --> 0:01:41.520 introduce to get around the original curbs. 0:01:42.000 --> 0:01:43.720 To your mind, what is the impact. 0:01:43.440 --> 0:01:47.640 Here, Well, at this stage, I think the impact on 0:01:47.840 --> 0:01:51.640 Nvidia initially is roughly five billion dollars on their top 0:01:51.720 --> 0:01:55.360 line which could potentially go away. That is their exposure 0:01:55.520 --> 0:01:59.360 to China, which is twenty percent of their roughly twenty 0:01:59.400 --> 0:02:03.880 eight billion of revenues expected for twenty twenty three. But 0:02:04.040 --> 0:02:08.919 on a broader scale, look, AI is expect AI chips. 0:02:09.720 --> 0:02:15.040 AI itself is expected to grow roughly twentyfold by twenty thirty. 0:02:15.400 --> 0:02:18.240 So there is so much demand for AI chips, for 0:02:18.320 --> 0:02:22.799 these GPU chips that Nvidea makes that in the long run, 0:02:23.320 --> 0:02:27.399 I believe n Video will be able to make up 0:02:27.960 --> 0:02:32.440 any loss to the China market. I would say, however, 0:02:32.520 --> 0:02:36.600 that China is a significant market. It's huge, and so 0:02:37.320 --> 0:02:41.880 I think companies like Nvidia and others, whether it's Micron 0:02:42.000 --> 0:02:46.720 or AMD has minimal exposure, but companies. Chip companies want 0:02:46.760 --> 0:02:49.720 to be exposed, want exposure to China so that they 0:02:49.720 --> 0:02:54.560 can partake in that upside, and this latest expansion of 0:02:54.600 --> 0:02:59.240 these sanctions suggests that that may be shut down to 0:02:59.720 --> 0:03:01.440 the sector in the near term. 0:03:02.120 --> 0:03:04.480 What's so interesting about this story is we're not talking 0:03:04.520 --> 0:03:08.680 about H one hundred, the sort of cutting edge of GPU. 0:03:08.880 --> 0:03:13.240 What Nvidia did was design chips that fell below the 0:03:13.280 --> 0:03:18.000 threshold to require US license to export to China. But 0:03:18.360 --> 0:03:21.680 it brings into focus China is a consumer, right Paula 0:03:21.760 --> 0:03:25.000 talk to us about broadly the semiconductor industry and how 0:03:25.080 --> 0:03:29.600 much US design chip is going into products assembled there 0:03:29.680 --> 0:03:30.919 or into Chinese products. 0:03:31.560 --> 0:03:34.079 Well, first of all, I mean in terms of assembly, 0:03:34.480 --> 0:03:36.840 if you look at Apple, I mean they're trying to 0:03:37.920 --> 0:03:44.600 expand to India with their assembly operations. But the reality 0:03:44.720 --> 0:03:48.840 is China is a significant market. As I said before 0:03:50.280 --> 0:03:52.960 testing assembly, it's the leader in testine assembly. 0:03:53.480 --> 0:03:55.600 It does not make the AD it. 0:03:55.520 --> 0:03:59.600 Has very low exposure to the advanced chips, but again 0:03:59.800 --> 0:04:03.640 it's a growing market and companies are sort of, you know, 0:04:04.320 --> 0:04:09.320 in the middle of the US and China's trade tensions 0:04:09.360 --> 0:04:12.280 because they want the exposure they want to partake in 0:04:12.320 --> 0:04:14.240 that growth in the China market. 0:04:15.080 --> 0:04:19.279 Another chip name here in the US that's confronting the 0:04:19.400 --> 0:04:23.039 China issue is Micron reporting after the bell, what are 0:04:23.080 --> 0:04:26.480 you expecting from Micron and how they communicate their handling 0:04:26.880 --> 0:04:27.680 of this situation. 0:04:28.120 --> 0:04:34.320 Yes, well, Micron already announced their double digit revenue hit 0:04:34.760 --> 0:04:39.720 by the sanction most recent sanctions implemented by the US 0:04:39.839 --> 0:04:43.599 government or by the China government, and so I expect 0:04:43.960 --> 0:04:47.240 that will not impact this particular quarter. But this quarter 0:04:47.360 --> 0:04:50.039 is going to be really bad just because you've had 0:04:50.320 --> 0:04:55.719 you know, sluggish demand and PC and PCs and computers, 0:04:55.760 --> 0:05:01.600 and you have you know, really low and depressed Reacher prices. 0:05:02.160 --> 0:05:07.200 But many believe that this could be a trough for 0:05:07.440 --> 0:05:10.720 the company, and that's what the market hopes. I think 0:05:10.800 --> 0:05:13.280 we can't expect much from micro around for the remainder 0:05:13.320 --> 0:05:14.280 of twenty twenty four. 0:05:15.120 --> 0:05:18.720 We're talking d ram We're talking nan Bloomberg Intelligence. Is 0:05:18.760 --> 0:05:21.960 Paula Penkell saying it's gonna be bad after the bell 0:05:22.040 --> 0:05:24.479 twenty four hours time, tune in Bloomberg Technology, and I 0:05:24.480 --> 0:05:27.320 guess we will find out. Paula Penkell, BI, thank you 0:05:27.400 --> 0:05:31.440 so much. Now in today's Big Take, Bloomberg Big Take. 0:05:31.800 --> 0:05:35.479 China's tech sector has a new obsession competing with the 0:05:35.600 --> 0:05:39.279 US and its titans like Google Microsoft in the battle 0:05:39.320 --> 0:05:43.280 for dominance in artificial intelligence. Bloomberg's Jan Jang has more 0:05:43.320 --> 0:05:44.000 from Hong Kong. 0:05:44.960 --> 0:05:48.480 China's tech sector has a new obsession competing with US 0:05:48.560 --> 0:05:50.480 giants in the global AI race. 0:05:51.040 --> 0:05:52.360 Fifteen billion dollars. 0:05:52.760 --> 0:05:56.599 That's amount China is expect to spend on AI this year. 0:05:56.960 --> 0:06:01.200 Big tech players in China from Baydo, Alba, and System 0:06:01.520 --> 0:06:04.440 have launched their own large language models in the span 0:06:04.640 --> 0:06:08.239 of just several months being in their entrepreneurs one shall Trend, 0:06:08.560 --> 0:06:11.479 the founder of search engine Sogo, and maje one co 0:06:11.560 --> 0:06:15.039 founder one we one are also powering money into their 0:06:15.080 --> 0:06:19.080 startups to build Chinese own open AI. This new tech 0:06:19.120 --> 0:06:22.680 breakthrough could really split up the emergence of new platforms 0:06:22.720 --> 0:06:26.880 to host a wave of revolutionary applications, just like what 0:06:27.040 --> 0:06:30.400 happened in the mobile Internet era, from a chatboard to 0:06:30.440 --> 0:06:34.359 help manufacturers track consumption trends in the e commerce industry, 0:06:34.680 --> 0:06:38.200 to text to image applications in the gaming industry to 0:06:38.320 --> 0:06:43.039 replace concept artists, as well as smart enterprise softwares to 0:06:43.160 --> 0:06:47.679 help analyze and transcribe meetings. Chinese tech tacoons have divided 0:06:47.760 --> 0:06:50.480 opinions on how much China has to catch up with 0:06:50.560 --> 0:06:53.760 the US in AI went on me three years, another 0:06:53.839 --> 0:06:57.200 said a few months, but the gap may be getting smaller. 0:06:57.400 --> 0:07:00.720 The number of Chinese introducing AI reached more than two 0:07:00.760 --> 0:07:03.680 thirds of the US total from the beginning of this 0:07:03.880 --> 0:07:07.560 year to meet Juan, for instance, just about fifty percent 0:07:07.760 --> 0:07:12.040 in previous two years. Even with obstacles like censorship and 0:07:12.280 --> 0:07:15.400 US chip bands, Chinese companies are ready to take on 0:07:15.440 --> 0:07:17.920 the battle, and this is just the beginning. 0:07:19.520 --> 0:07:22.280 Bloomberg's Jane Jung with the Bloomberg Big Take, thank you 0:07:22.600 --> 0:07:25.600 for that reporting. Sticking with artificial intelligence, another story, we're 0:07:25.600 --> 0:07:29.000 watching black Rock joining the AI mania on the promise 0:07:29.040 --> 0:07:32.720 of productivity gains from the technology. The firm just introduced 0:07:32.760 --> 0:07:36.119 a bullish call on AI following the rally that's already 0:07:36.200 --> 0:07:39.040 driven the best ever first half of the year for 0:07:39.080 --> 0:07:42.239 the Nasdaq one hundred index. It picked out semiconductor makers 0:07:42.520 --> 0:07:45.960 companies with vast sets of data or high potential for 0:07:46.000 --> 0:07:51.080 automation as those most likely to benefit. Now coming up, 0:07:51.240 --> 0:07:54.320 how Google Deep Mind is trying to tackle humanity's biggest 0:07:54.360 --> 0:07:59.640 challenges from climate change to curing cancer with AI DeepMind. 0:07:59.720 --> 0:08:02.960 Senior business director Colin Murdock would join us live from 0:08:02.960 --> 0:08:07.320 the Collision Conference happening out in Toronto. Now keep it 0:08:07.360 --> 0:08:11.080 a quick check on shares of Google or Alphabet, the 0:08:11.120 --> 0:08:11.880 parent company. 0:08:12.000 --> 0:08:13.680 The company cut jobs. 0:08:13.560 --> 0:08:17.240 At Mapping service Ways, the tech giants' latest move to 0:08:17.360 --> 0:08:21.400 trim its operations amid a drive for efficiency in Silicon Valley. 0:08:21.440 --> 0:08:25.000 Some positions focused on advertising it ways, and they were 0:08:25.000 --> 0:08:30.320 eliminated after unit began transitioning to using Google's advertising technology. 0:08:30.320 --> 0:08:34.920 A Google spokesperson told us on Tuesday, this is Bloomberg. 0:08:44.600 --> 0:08:48.000 Let's head over to Toronto where the Techmedia Collision Conference 0:08:48.320 --> 0:08:52.480 is underway, and surprise, surprise, AI is top of mind. 0:08:52.520 --> 0:08:55.959 John Erlickman on standby for us with a very special guest, 0:08:56.160 --> 0:08:58.439 a leader in the AI field, jump. 0:09:01.440 --> 0:09:02.439 Ed, great to be with you. 0:09:03.080 --> 0:09:05.760 Yes, AI is all the rage here in Toronto at 0:09:05.800 --> 0:09:08.679 the Collision conference, and obviously a lot of people are 0:09:08.720 --> 0:09:11.280 trying to figure out where we go from here now. 0:09:11.360 --> 0:09:13.760 For Google Deep Mind, they have been thinking about the 0:09:13.800 --> 0:09:17.400 promise of AI for more than a decade. Colin Murdoch 0:09:17.480 --> 0:09:20.240 is the chief business officer of Google Deep Mind, and 0:09:20.280 --> 0:09:21.840 he's here at Collision it joins us. 0:09:21.880 --> 0:09:24.000 Now, Colin, thanks very much for joining us. 0:09:24.160 --> 0:09:26.040 Hey you wilcome. It's fantastic to be here. 0:09:26.080 --> 0:09:28.240 In fact, great a being Canada in Toronso, my first 0:09:28.240 --> 0:09:29.000 time to Toronto. 0:09:29.200 --> 0:09:32.600 Well it's a huge gathering for a city like Toronto 0:09:32.600 --> 0:09:35.079 to have thirty six thousand people come here. And as 0:09:35.240 --> 0:09:39.400 Ed was alluding to, the focus is AI AI AI. 0:09:40.200 --> 0:09:42.240 When you come to an event like this, what's the 0:09:42.280 --> 0:09:44.000 message that you're trying to bring to the table. 0:09:44.160 --> 0:09:46.240 Well, you know, I think it is all about AI. 0:09:46.280 --> 0:09:48.000 In the last six to twelve months, I think the 0:09:48.040 --> 0:09:50.720 real world has really working out with the potential, the 0:09:50.800 --> 0:09:53.640 potential for huge impact in the world. So the message 0:09:53.640 --> 0:09:55.559 I'm trying to get out there is that I think 0:09:55.600 --> 0:09:58.400 AI can have huge impact on some of the society's 0:09:58.400 --> 0:09:59.200 biggest challenges. 0:10:00.480 --> 0:10:03.440 Maybe explain that in a greater degree because the Deep 0:10:03.480 --> 0:10:07.200 Mind team is working on the research possibility we tease 0:10:07.240 --> 0:10:10.840 before the break, whether it's dealing with climate change or cancer. 0:10:10.960 --> 0:10:12.960 How So that is a great example. 0:10:13.040 --> 0:10:16.360 So let's take climate change, a huge issue for society. 0:10:16.440 --> 0:10:20.120 What I think AI can have a huge benefit. One 0:10:20.160 --> 0:10:22.920 example is we're using AIS can take weather much more 0:10:22.920 --> 0:10:26.560 accurate weather traditions to help communities and companies around the 0:10:26.559 --> 0:10:30.720 world adapt to it increasingly extreme weather and the devastating 0:10:30.800 --> 0:10:35.520 impact that can have. Another example actually is our digital society. 0:10:35.640 --> 0:10:39.640 The infrastructure underpins that today that requires huge numbers of 0:10:39.679 --> 0:10:42.080 computers and data centers to work, and left of their 0:10:42.120 --> 0:10:45.240 own devices done, they get extremely hot, very hot, and 0:10:45.280 --> 0:10:47.600 so as a large amount of energy that goes into 0:10:47.679 --> 0:10:49.600 keep them in the cool and we've been able to 0:10:49.640 --> 0:10:53.760 save forty percent of energy using AI to keep those 0:10:53.840 --> 0:10:57.160 data centers up on running. That's a really fantastic example. 0:10:57.280 --> 0:10:59.000 I can talk about new confusion as well. If you 0:10:59.040 --> 0:11:02.320 want to a nuclear fusion the power the powers are 0:11:02.360 --> 0:11:06.080 stars us a greener and cleaner source of energy, and 0:11:06.120 --> 0:11:10.640 we're now using AI to control the plasma inside these 0:11:10.720 --> 0:11:14.360 nuclear fusion reactors to help bring forward the products of 0:11:14.440 --> 0:11:15.120 nuclear fusion. 0:11:15.320 --> 0:11:16.800 If we can do that, then we've. 0:11:16.640 --> 0:11:18.800 Almost got a limitless source of energy, which I think 0:11:18.840 --> 0:11:21.040 will have a profound impact. 0:11:20.640 --> 0:11:23.679 On so sets Deep Mind is for those who were 0:11:23.679 --> 0:11:27.600 curious about Google's curiosity on AI. We've known that for 0:11:27.640 --> 0:11:29.520 a long time. I mentioned but going back to two 0:11:29.520 --> 0:11:34.559 thousand and ten. But because Alphabet has become a AI 0:11:34.600 --> 0:11:38.160 first company. Sometimes there is some confusion about what Google 0:11:38.240 --> 0:11:41.360 deep Mind relationship is to the parent company. 0:11:41.360 --> 0:11:43.160 How does that work when you're focused on research? 0:11:43.200 --> 0:11:45.840 I mean, why is it beneficial to have this research 0:11:45.920 --> 0:11:47.680 arm of the company. 0:11:48.040 --> 0:11:51.440 So our particular focus in Google deemlind is staying at 0:11:51.480 --> 0:11:54.760 the forefront of AI research and then translating that into 0:11:54.760 --> 0:11:58.240 the products across the alphabet gury and it's really valuables 0:11:58.280 --> 0:12:00.600 to gather together a like minded people so you can 0:12:00.640 --> 0:12:03.360 stay at the forefront. It's costing these folks together that 0:12:03.440 --> 0:12:05.559 allows us to stay at the full front of research 0:12:05.800 --> 0:12:07.920 and be able to develop this research which we can 0:12:07.960 --> 0:12:10.960 then put into products like in climate change, but also 0:12:11.000 --> 0:12:14.680 putting into YouTube and the healthcare examples or the health 0:12:14.679 --> 0:12:17.199 examples you mentioned data as well as another correct part. 0:12:17.880 --> 0:12:21.000 So you would be in a good position to understand 0:12:21.400 --> 0:12:26.760 the opportunities and the risks of fast changing technology. I 0:12:26.760 --> 0:12:29.720 think one of the biggest questions for your parent company 0:12:29.880 --> 0:12:30.520 or any big. 0:12:30.320 --> 0:12:33.040 Technology company betting on AA right now is are we 0:12:33.080 --> 0:12:34.120 moving too quickly? 0:12:34.200 --> 0:12:37.080 What do you think about the speed of adoption in 0:12:37.160 --> 0:12:39.760 AI today? Considering the deep mine's been thinking about this 0:12:39.840 --> 0:12:41.160 for more than a decade. 0:12:40.960 --> 0:12:41.800 While zeeming out. 0:12:41.800 --> 0:12:46.400 You're absolutely right, it's incredibly important that we pawn a responsivey. 0:12:46.440 --> 0:12:49.360 We tite careful steps as we developing mistology. It's an 0:12:49.360 --> 0:12:52.520 extremely powerful technology, so we have to take an exceptional caun. 0:12:52.840 --> 0:12:54.360 So we've been thinking about this from. 0:12:54.240 --> 0:12:57.040 The beginning, even from the beginning of DEMI report. It 0:12:57.080 --> 0:13:00.160 pawning responsively. We have to make sure that there's we 0:13:00.240 --> 0:13:03.200 do our we're taking the right mitigation steps, we're getting 0:13:03.240 --> 0:13:05.000 the right reviews, and we're involving. 0:13:04.640 --> 0:13:06.319 The right people every step of the way. 0:13:06.920 --> 0:13:09.720 On the regulatory front, because that's another big issue and 0:13:09.760 --> 0:13:12.200 it has been this week. We actually just spoke to 0:13:12.240 --> 0:13:16.320 the Innovation Minister here in Canada who has legislation on 0:13:16.360 --> 0:13:20.040 the table to try to at least have some regulation 0:13:20.280 --> 0:13:21.080 around AI. 0:13:21.600 --> 0:13:23.959 And I wonder how you think about the. 0:13:23.960 --> 0:13:27.160 Right regulation or working with different governments on regulation. 0:13:27.440 --> 0:13:29.560 This is aursox up pick. We're spending a lot of 0:13:29.600 --> 0:13:31.880 time working on thinking about across the glibe. 0:13:31.920 --> 0:13:34.520 Actually, we want to make sure we're sharing our insights 0:13:34.520 --> 0:13:35.520 so we can really. 0:13:35.360 --> 0:13:38.200 Help regulators think about the most effects of regulation. 0:13:38.559 --> 0:13:40.760 And by that I mean regulation that I think. 0:13:40.600 --> 0:13:45.040 Allows innovation allows these amazing great fears, but importantly uside 0:13:45.080 --> 0:13:46.120 mitigates the potential. 0:13:46.200 --> 0:13:47.640 Racis the really important talk. 0:13:48.240 --> 0:13:52.080 So do you feel then, because you're working on. 0:13:52.000 --> 0:13:57.240 Some very profound potential change for society, then sometimes we 0:13:57.280 --> 0:14:01.000 get caught up in the what ifs because they'll seem 0:14:01.200 --> 0:14:02.760 pretty worrisome as well. 0:14:03.360 --> 0:14:05.800 Yeah, you know, it is really important to make sure 0:14:06.200 --> 0:14:09.200 we are addressing the risks and making sure we're building 0:14:09.240 --> 0:14:12.080 a positive future for everyone. How don't we have to remember? 0:14:12.320 --> 0:14:14.120 But it's to a point that in y end, this 0:14:14.240 --> 0:14:16.480 is an incredibly powerful tendrigy I think is going to 0:14:16.480 --> 0:14:19.200 do an immense good for society. I'm not going to 0:14:19.200 --> 0:14:21.120 be part of them buy as well. We can't lose that. 0:14:21.200 --> 0:14:22.760 In the discussion stuss important. 0:14:22.920 --> 0:14:26.480 So you mentioned that the research you do can ultimately 0:14:27.440 --> 0:14:30.640 not just be shared with partners and governments, but can 0:14:30.680 --> 0:14:34.120 be implemented into the different products that the parent company 0:14:34.200 --> 0:14:34.880 is focused on. 0:14:35.000 --> 0:14:37.240 Right now, how does that work? What's the time for? 0:14:37.400 --> 0:14:40.240 When do you know that the research you've done is 0:14:40.280 --> 0:14:42.640 really worth passing on and sharing with the rest of 0:14:42.680 --> 0:14:46.000 the team and ultimately might be something consumers or companies conceived. 0:14:46.320 --> 0:14:48.160 Well, let me give you an example of health, which 0:14:48.160 --> 0:14:51.000 I think is an incredible example proteins and the building 0:14:51.000 --> 0:14:53.120 blocks of us that will keeping you and I working 0:14:53.200 --> 0:14:56.640 right now. And we've developed some technology that understands proteins 0:14:56.640 --> 0:14:59.360 at a much deeper level, which has been used by 0:15:00.160 --> 0:15:03.560 rains are amazing companies and organizations. I think there's actually 0:15:03.600 --> 0:15:05.760 a group here at the University of Toronto in fact, 0:15:06.000 --> 0:15:07.800 who've been able to use this technogy we call it 0:15:07.840 --> 0:15:12.200 Alpha fold to identify a target for a drug against 0:15:12.560 --> 0:15:13.640 liver cancer. 0:15:13.240 --> 0:15:15.080 And we're leading forms of liver cancer. 0:15:15.480 --> 0:15:18.200 That's an amazing example of how we've taken AI that 0:15:18.440 --> 0:15:20.400 was kind of being developed in the lab and we've 0:15:20.400 --> 0:15:21.760 brought it and we've worked with a partner here. 0:15:21.760 --> 0:15:24.400 In Toronto to do something which is really profound and powerful. 0:15:24.840 --> 0:15:27.560 And are you finding talent here as well for your team? 0:15:27.720 --> 0:15:31.720 We are based here in Toronto, actually Anna Montreal, and 0:15:31.760 --> 0:15:34.000 you're on a great team members here in Canada and 0:15:34.160 --> 0:15:35.360 I love I love the country. 0:15:35.560 --> 0:15:37.720 All right, Oh, thanks very much for them. 0:15:38.160 --> 0:15:40.360 We're an actually business officer of Google Deep Mind and 0:15:40.400 --> 0:15:41.200 I'll send it back. 0:15:41.040 --> 0:15:41.840 To you in the studio. 0:15:42.600 --> 0:15:45.960 Yeah, fascinating AI developed in the lab and then taken 0:15:46.000 --> 0:15:49.360 out to commercialize with partners. Colin Murdock, Google Deep Mind 0:15:49.720 --> 0:15:52.600 chief business officer, and of course thenn's John Erlikman out 0:15:52.600 --> 0:16:04.000 there in Toronto. Thanks to you both, time for talking tech. 0:16:04.080 --> 0:16:07.600 First up, Samsung amping up its chip foundry business by 0:16:07.640 --> 0:16:11.520 advancing its manufacturing techniques. The South Korean company said it 0:16:11.520 --> 0:16:15.280 we'll introduce a two nanometer production for mobile phone parts 0:16:15.280 --> 0:16:20.280 by twenty twenty five and expand its applications. Plus Microsoft's 0:16:20.560 --> 0:16:24.040 acquisition of Activision Blizzard could deliver a blow to Sony's 0:16:24.080 --> 0:16:28.560 PlayStation gamers. That's according to a Sony executive testimony in 0:16:28.680 --> 0:16:31.480 federal court, where they said the deal would give PlayStation 0:16:31.640 --> 0:16:36.440 gamers a degraded experience. The case represents a major test 0:16:36.440 --> 0:16:40.600 for the FTC's ability to block big tech deals and 0:16:41.120 --> 0:16:45.560 bankrupt cryptocurrency exchange FTX has abruptly stopped the sale of 0:16:45.560 --> 0:16:49.000 one of its most sought after assets, a stake in 0:16:49.080 --> 0:16:52.680 the AI startup Anthropic. The wholt came after several months 0:16:52.760 --> 0:16:57.640 during which multiple potential buyers assessed private information about the 0:16:57.680 --> 0:17:00.680 Anthropic steak. Let's get more on this story and bring 0:17:00.680 --> 0:17:03.360 in Bloomberg's ut Yang out in New York. What are 0:17:03.400 --> 0:17:06.119 the full picture of the details, UTI, So. 0:17:06.119 --> 0:17:09.760 As we know ever, since FTX filed for bankruptcy last year. 0:17:10.080 --> 0:17:14.440 The new leadership of FTX has one main goal, which 0:17:14.480 --> 0:17:18.200 is to recover as much value as possible for creditors, 0:17:18.359 --> 0:17:21.560 and there are multiple ways of achieving that, one of 0:17:21.600 --> 0:17:27.120 which is to assal And we know that FTX bankers 0:17:27.240 --> 0:17:31.320 had earlier started a process to sell FTX one of 0:17:31.320 --> 0:17:36.400 the most biggest investment portfolio, which is a stake internally 0:17:36.480 --> 0:17:41.080 valued at five hundred million dollars by FTX Anthwopic, which 0:17:41.119 --> 0:17:45.159 is one of now the hardest AI startups, So we 0:17:45.280 --> 0:17:49.120 know that the process had begun earlier, but then at 0:17:49.160 --> 0:17:53.720 some point this month the bankers decided to abruptly stop 0:17:53.760 --> 0:17:58.359 the process. And there's no expantanation given, But then we 0:17:58.440 --> 0:18:01.520 know that every thing that they do is in the 0:18:01.560 --> 0:18:05.880 over goal of trying to maximize value for creditors. And 0:18:05.920 --> 0:18:09.040 at the backdrop of that, the the valuation for a 0:18:09.040 --> 0:18:13.040 lot of AI startup has increased this year as AI 0:18:13.359 --> 0:18:15.360 and chap GPT become more popular. 0:18:16.440 --> 0:18:20.920 So usually a pretty reasonable question is why a crypto 0:18:20.960 --> 0:18:25.080 exchange would invest money in an AI startup in the 0:18:25.080 --> 0:18:25.680 first place. 0:18:26.240 --> 0:18:30.080 That's a great question if you look at the portfolio 0:18:30.200 --> 0:18:34.680 that Sam backman Free has built up before his firm collapse. 0:18:34.880 --> 0:18:40.040 They actually invested in a variety of startups across different sectors. 0:18:40.480 --> 0:18:43.480 We reported that mining is a sector that they had 0:18:43.560 --> 0:18:46.800 that big in, and then AI is another sector that 0:18:46.840 --> 0:18:49.679 they have also made multiple stakes. And of course they 0:18:49.680 --> 0:18:54.479 also invested in plenty of cryptal and blockchain startups. But 0:18:54.560 --> 0:18:57.600 I think the one asset that has become more popular 0:18:57.640 --> 0:19:00.879 and sought after now is really their stake in AI. 0:19:02.200 --> 0:19:05.760 We had Amy wu On, formerly the head of FTX 0:19:05.760 --> 0:19:09.600 Adventures quite recently. She's now at Menlo focused more on 0:19:09.640 --> 0:19:12.640 the consumer and gaming side, but it reminded us that 0:19:13.280 --> 0:19:18.639 FTX was deploying capital investing in technologies from a bigger 0:19:18.680 --> 0:19:22.199 picture perspective with anthropic what do we think is going 0:19:22.280 --> 0:19:24.840 to happen next? I mean, they've put this on hold, 0:19:24.920 --> 0:19:27.800 but is the long term goal to still divest or 0:19:27.840 --> 0:19:28.399 sell off. 0:19:28.280 --> 0:19:31.880 The steak, So that's yet to be seen. We note 0:19:31.920 --> 0:19:36.359 that FTX has also been looking into potentially restarting the 0:19:36.440 --> 0:19:41.000 international exchange, so there are multiple moving parts here, and 0:19:41.040 --> 0:19:44.199 we've reported that there are parties that are interested in 0:19:44.280 --> 0:19:49.200 beating for a potential restart of the FTX exchange. So 0:19:49.600 --> 0:19:52.480 going back to antheropic steak. I don't think the story 0:19:52.560 --> 0:19:55.040 ends here, and I'm sure there will be more actions 0:19:55.080 --> 0:19:58.560 on how to deal with that particular steak. 0:19:59.440 --> 0:20:01.600 Bloombas Yang will keep us up to date with the 0:20:01.680 --> 0:20:13.119 latest Bloomberg reporting. Welcome back to Bloomberg Technology, Ed Ludlow 0:20:13.160 --> 0:20:16.560 here in San Francisco's Check the markets Quickly, Technology is 0:20:16.600 --> 0:20:18.359 a part of the story, and as that one hundred 0:20:18.359 --> 0:20:21.760 modestly higher two tens and one percent some outperformance. We 0:20:21.800 --> 0:20:24.679 had all the great leaders of world central banks in 0:20:24.680 --> 0:20:27.480 one place. But kind of the main takeaway j pow 0:20:28.119 --> 0:20:30.919 fed chair saying that actually a recession in the United 0:20:30.920 --> 0:20:33.480 States is one of the least likely scenarios and that 0:20:33.560 --> 0:20:36.320 is pushing tech higher some underperformance zone chipstocks. 0:20:36.320 --> 0:20:38.359 We talked about this earlier in Bloomberg Technology. 0:20:38.440 --> 0:20:40.880 Right the Wall Street, your journal reports that the US 0:20:40.960 --> 0:20:43.760 is going to tighten restrictions on the export of chips 0:20:43.760 --> 0:20:46.280 to China, that impacting. In video, one of the names 0:20:46.440 --> 0:20:49.000 moving to the downside was soft by seven tens percent 0:20:49.240 --> 0:20:51.119 on the socks and a quick check on bitcoin, one 0:20:51.119 --> 0:20:54.080 of our favorite risk assets. We are now sort of 0:20:54.080 --> 0:20:58.000 heading lower one percent lower on bitcoin thirty three hundred 0:20:58.119 --> 0:21:01.439 US dollars per token we had since buoyancy in recent 0:21:01.520 --> 0:21:05.480 days tied to the momentum around ETFs A filing from 0:21:05.520 --> 0:21:08.920 black Rock or reported filing from Fidelity. Now, if there 0:21:08.960 --> 0:21:11.600 is one name in the technology sector that we are 0:21:11.640 --> 0:21:16.000 monitoring very closely, it is Joby Aviation, maker of Flying Taxis. 0:21:16.160 --> 0:21:17.720 We're up forty percent right now. 0:21:17.760 --> 0:21:20.240 We are very close to the biggest gain on record, 0:21:20.520 --> 0:21:23.480 depending on where we close. We need to find out why. 0:21:23.560 --> 0:21:26.879 So joining us for an exclusive interview is Joby's CEO, 0:21:27.119 --> 0:21:31.400 Joe Ben Bevett, down in Central Cow Marina, California. Joe Ben, 0:21:31.440 --> 0:21:39.040 the news you've received FAA certification to test air test fly. Basically, 0:21:39.080 --> 0:21:43.600 what are units and production units flying off the production line? 0:21:44.200 --> 0:21:46.040 How big a moment is this for your company? 0:21:47.680 --> 0:21:50.840 First, thank you so much, good morning, wonderful to be 0:21:50.880 --> 0:21:54.520 with you. This is a huge moment. The Jobe team 0:21:54.600 --> 0:21:59.280 has been working really, really hard, and we've been flying 0:21:59.320 --> 0:22:02.800 prototypes of our aircraft since twenty seventeen, full scale prototypes. 0:22:03.040 --> 0:22:05.840 But this is the first time that an aircraft that's 0:22:05.840 --> 0:22:11.520 come off our pilot manufacturing line has received certification from 0:22:11.560 --> 0:22:14.920 the FA to begin flight test. 0:22:15.440 --> 0:22:16.960 And this is a pivotal moment. 0:22:17.000 --> 0:22:19.159 As you can see, I'm standing here at our pilot 0:22:19.160 --> 0:22:22.640 manufacturing line, and not only do we have the first 0:22:22.680 --> 0:22:25.240 one coming off the line, but we've gotten multiple coming 0:22:25.240 --> 0:22:26.320 along behind us. 0:22:27.080 --> 0:22:29.080 Okay, so give me some numbers. How many do you 0:22:29.080 --> 0:22:31.480 think you will build in the remainder of twenty twenty 0:22:31.480 --> 0:22:33.320 three and how many in twenty twenty four. 0:22:34.280 --> 0:22:37.600 So this we're still in the carawl phase of this journey. 0:22:38.160 --> 0:22:42.000 This pilot manufacturing line here has the potential to build 0:22:42.160 --> 0:22:44.840