WEBVTT - China Expands Travel Curbs to Top AI Talent 0:00:00.120 --> 0:00:13.680 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.720 --> 0:00:17.520 from coast to coast with Caroline Hide in New York 0:00:17.800 --> 0:00:20.560 and Eva Low in San Francisco. 0:00:23.000 --> 0:00:24.639 This is Bloomberg Tech coming up. 0:00:24.760 --> 0:00:28.440 China tightens its grip on AI, this time targeting overseas 0:00:28.480 --> 0:00:30.600 travel by top AI professionals. 0:00:30.640 --> 0:00:33.240 Plus how big banks are looking to hire more AI 0:00:33.320 --> 0:00:36.160 specialists and shrink traditional banking roles. 0:00:36.800 --> 0:00:39.480 And we'll look at the tech IPO landscape as SpaceX 0:00:39.600 --> 0:00:42.360 kicks off an IPO bonanza and. 0:00:42.479 --> 0:00:44.400 Quite the timing for any sort of IPO right now, 0:00:44.400 --> 0:00:47.360 because a new record high once again ed it's risk 0:00:47.440 --> 0:00:50.400 one and that means we're buying semiconductors, we're buying hardware. 0:00:50.400 --> 0:00:52.440 Then how's that one hundred and a new record high? 0:00:52.440 --> 0:00:54.920 We're at one point on an in today basis, That is, 0:00:55.080 --> 0:00:58.840 we're looking at the Semiconductor index on fire up five 0:00:58.840 --> 0:01:01.400 percent for the socks. Why dig into some of the 0:01:01.400 --> 0:01:04.840 individual movers. We're seeing Micron and a new record high 0:01:04.959 --> 0:01:08.840 as we see analysts or pile in an extraordinary uplift 0:01:08.840 --> 0:01:11.039 from ubs in terms of a price target that more 0:01:11.040 --> 0:01:13.560 than doubles and where it's currently training. We're up seventeen 0:01:13.600 --> 0:01:15.959 percent for Micron. But also you're shining a light what's 0:01:16.000 --> 0:01:18.560 happening with Qualcom getting a real boost as well as 0:01:18.600 --> 0:01:20.280 we start to see new buyers of its A six. 0:01:20.319 --> 0:01:24.200 It's all about the hardware ed from Asia to the 0:01:24.319 --> 0:01:27.559 US session. There's a massive rally in ship stocks. Also 0:01:27.600 --> 0:01:31.240 because of a breakthrough in technology. China's Huawei says it 0:01:31.280 --> 0:01:34.520 has a new technique, logic folding, that changes how a 0:01:34.640 --> 0:01:38.360 signal passes through a transistor, so you can do away 0:01:38.400 --> 0:01:41.440 with extreme miniaturization. You don't have to worry about the 0:01:41.480 --> 0:01:45.480 limits of extreme ultraviolet lithography. It's a new design but 0:01:45.560 --> 0:01:48.360 also method of chip manufacturing, and that has really sent 0:01:48.640 --> 0:01:51.880 all kinds of chip stocks or supply chain exposure stocks 0:01:52.520 --> 0:01:55.920 sending much higher. Here's the catch, this is a technology 0:01:55.920 --> 0:01:58.160 that's many years away. Let's get more with Bloomberg Senior 0:01:58.200 --> 0:02:02.160 Tech editor Mike Shephard. You know, so interesting because Huawei 0:02:02.360 --> 0:02:05.920 is coming out saying, well, we've got something here technology wise, 0:02:06.480 --> 0:02:08.120 but you're going to have to wait until the next 0:02:08.160 --> 0:02:10.960 decade to see it. In a race with TESMC give 0:02:11.040 --> 0:02:11.680 us more detail. 0:02:12.800 --> 0:02:16.760 Well, they are promising something that people have been wondering about. 0:02:16.760 --> 0:02:19.520 What would be the next version of War's law, and 0:02:19.520 --> 0:02:22.120 that is the idea that every two years you would 0:02:22.120 --> 0:02:24.680 see a doubling of the number of transistors that you 0:02:24.720 --> 0:02:27.400 could fit on a tiny chip. And in recent years 0:02:27.639 --> 0:02:30.000 that has started to slow because the chips have just 0:02:30.040 --> 0:02:33.240 gotten so small and so much harder to produce and 0:02:33.280 --> 0:02:38.359 really requiring such sophisticated machinery like the kind of EUV 0:02:38.520 --> 0:02:42.560 machines produced by ASML, the Dutch company that really has 0:02:42.560 --> 0:02:45.880 a stranglehold on that, and that has really been a bottleneck, 0:02:46.040 --> 0:02:49.360 especially for China, which faces export controls on being able 0:02:49.360 --> 0:02:53.919 to acquire that technology. So their solution innovate around the problem, 0:02:53.960 --> 0:02:56.360 at least in the view of Huawei. They are promising 0:02:56.440 --> 0:02:59.799 this new method and even a new law to define 0:03:00.120 --> 0:03:02.720 how to pack all those transistors onto a chip, and 0:03:02.760 --> 0:03:05.840 they are calling it Tao's law and really trying to 0:03:05.960 --> 0:03:09.480 forge their own path. Now. The cautionary note, of course, ED, 0:03:09.680 --> 0:03:13.000 is that this is all theoretical. Right now, they say 0:03:13.040 --> 0:03:15.840 that in the Cure inship, the new line coming up soon. 0:03:16.360 --> 0:03:19.079 We may see signs of it, but it may take years, 0:03:19.200 --> 0:03:21.720 and ED can they produce it at a yield that 0:03:21.840 --> 0:03:23.280 produces a profit for them? 0:03:23.520 --> 0:03:26.440 But the focus clearly is on owning their own supply 0:03:26.560 --> 0:03:29.600 chain controlling it, and they're also looking to control their 0:03:29.600 --> 0:03:32.320 own talent chain. It feels as though as well might 0:03:32.520 --> 0:03:37.440 more limitations on those building AI startups in the country. 0:03:37.680 --> 0:03:41.160 Kara, We are seeing this competition between the US and 0:03:41.320 --> 0:03:46.280 China for leadership and artificial intelligence and advanced technology, not 0:03:46.360 --> 0:03:49.200 only in the chip and software arena, but in the 0:03:49.280 --> 0:03:52.720 people arena and sphere as well. And what China is 0:03:52.760 --> 0:03:55.520 doing is saying to its AI research is that look, 0:03:55.560 --> 0:03:57.920 if you want to go outside the country for leisure, 0:03:58.000 --> 0:04:00.640 for business, you have to come to us first, come 0:04:00.680 --> 0:04:03.240 to the authorities for permission. Now, for years they have 0:04:03.320 --> 0:04:06.000 required this sort of okay ahead of any sort of 0:04:06.040 --> 0:04:10.240 travel for college researchers, for nuclear scientists, and even executives 0:04:10.320 --> 0:04:13.360 that state owned firms. But now they are extending this 0:04:13.480 --> 0:04:16.920 reach into the private sector and specifically for companies that 0:04:17.040 --> 0:04:20.240 deal with artificial intelligence, which just like the US, is 0:04:20.240 --> 0:04:25.000 the clear for China it is a national strategic priority, 0:04:25.279 --> 0:04:29.680 and that also includes the personnel who produce it, the researchers, 0:04:29.720 --> 0:04:32.920 the scientists, even the executives and founders. We don't know 0:04:32.960 --> 0:04:36.000 how restrictive Caro this will be. Is it an automatic note? 0:04:36.040 --> 0:04:37.799 Does that mean you can never go to the US? 0:04:38.120 --> 0:04:40.440 Is it more pro former rubber stamp? We just want 0:04:40.440 --> 0:04:43.240 to know where you are. But nonetheless it is a 0:04:43.320 --> 0:04:46.839 signal that they want to keep those resources, those crown 0:04:46.920 --> 0:04:48.719 jewels of knowledge there at. 0:04:48.560 --> 0:04:51.480 Home, particularly after we see the investigation into the MANUS 0:04:51.520 --> 0:04:55.279 purchase by Meta as well bloembugs Mike Shepherd always across 0:04:55.320 --> 0:04:57.520 all things geopolitics. We want to now get you all 0:04:57.560 --> 0:05:01.120 across the markets more broadly, IPEC with US Swiss quote 0:05:01.120 --> 0:05:04.520 see market analysts. Look, we are seeing once again a 0:05:04.560 --> 0:05:07.680 furious rally, whether it be in hardware in China, whether 0:05:07.720 --> 0:05:09.320 it be the US names as well. 0:05:09.279 --> 0:05:13.200 Kind of continued, Well, that's a billion dollar question. I 0:05:13.279 --> 0:05:16.400 guess we have seen this AI optimism take over again 0:05:16.520 --> 0:05:20.279 since especially three months the RAN wars started, as investors 0:05:20.360 --> 0:05:23.960 just try to forget about the AR problems they're funding 0:05:24.600 --> 0:05:29.839 the financing of new debt on debt and the AR restrictions, 0:05:29.920 --> 0:05:32.680 and then the competition and then supply chain problems, and 0:05:32.760 --> 0:05:36.360 decided to just focus on the potential. And hardware is 0:05:36.560 --> 0:05:40.440 at the very center of this huge potential for AI adoption. 0:05:40.680 --> 0:05:41.719 The demand is strong. 0:05:41.920 --> 0:05:45.000 We know that the results from the technology companies, especially 0:05:45.080 --> 0:05:47.640 in the US, have come in better than expected. They 0:05:47.720 --> 0:05:51.240 beat the Uestimus and it looks like, yes, this could continue. 0:05:51.240 --> 0:05:54.400 But on well there are some problems and that risks 0:05:54.400 --> 0:05:57.800 that are building today. One the Macray climbing set up, 0:05:58.160 --> 0:06:01.479 the mac Ray climb backshop is not necessarily ideal. The 0:06:01.560 --> 0:06:05.320 rising borrowing costs our at risk. The other riskers the 0:06:05.440 --> 0:06:09.360 energy crisis, the supply chain problems and the competition. 0:06:10.880 --> 0:06:15.240 Epek our Markets team are writing that stocks arising because 0:06:15.279 --> 0:06:18.839 of Iran piece hopes. But I'm looking at the S 0:06:18.880 --> 0:06:22.640 and P five hundred information technology massively outperforming the Nazak 0:06:22.680 --> 0:06:27.560 one hundred, pushing records. Semiconductors are going absolutely bonkers because. 0:06:27.320 --> 0:06:28.239 Of the Huawei report. 0:06:28.240 --> 0:06:30.400 I think you just heard shep give the details of 0:06:30.440 --> 0:06:34.919 Huawei's new chip manufacturing process. What's happening right now in 0:06:34.960 --> 0:06:36.839 tech well. 0:06:36.560 --> 0:06:39.440 In tech well tech has become one major driver of 0:06:39.560 --> 0:06:41.919 the global markets. It's not only the US, but we 0:06:42.000 --> 0:06:47.160 also see it in the emerging markets, with Korean memoryship makers, 0:06:47.160 --> 0:06:50.600 for example, really carrying this rally almost alone on their 0:06:50.640 --> 0:06:53.800 own shoulders to all time higher levels, whereas the rest 0:06:53.880 --> 0:06:57.880 of the sectors are struggling. They're struggling with an unideal 0:06:58.040 --> 0:07:02.680 macracline backdop rising those rising borrowing costs and supply chain risks. 0:07:02.800 --> 0:07:04.960 So what we see today is that the market bread 0:07:05.200 --> 0:07:08.359 between the technology sector and the rest is increasing in 0:07:08.400 --> 0:07:11.640 a way that when we look at the MSCI markets 0:07:11.720 --> 0:07:15.280 while the rest of the market is if you just 0:07:15.440 --> 0:07:19.080 stripped out s kah Nich, sums On or TSMC, for example, 0:07:19.320 --> 0:07:22.000 while they have fallen to the levels that we have 0:07:22.200 --> 0:07:25.120 last seen during the April death last year, past a 0:07:25.160 --> 0:07:26.080 Liberation Day. 0:07:27.680 --> 0:07:31.560 This hardware focus and momentum has really made certain names 0:07:31.560 --> 0:07:33.160 start to outshine here in the US. 0:07:33.240 --> 0:07:34.360 I'm all eyes on Micron. 0:07:34.560 --> 0:07:36.960 We actually spoke with the CEO of Micron on Friday impact. 0:07:37.120 --> 0:07:38.880 Just listen to what you said about the memory side 0:07:38.920 --> 0:07:39.440 of the business. 0:07:40.240 --> 0:07:43.760 Of course, the demand for memory has really searched, and 0:07:43.920 --> 0:07:47.040 that is because of the importance and the value and 0:07:47.120 --> 0:07:51.640 the capability of memory that is really essential for all 0:07:52.120 --> 0:07:56.080 advanced systems. And yes there is a shortage, but Micron 0:07:56.200 --> 0:08:00.400 is working hard to increase supply through these projects here 0:08:00.760 --> 0:08:05.800 in americaa here in Manassa's Virginia, Boise and New York 0:08:06.160 --> 0:08:10.440 and we see this shortage continuing beyond, well beyond twenty 0:08:10.520 --> 0:08:11.720 twenty six time frame. 0:08:12.560 --> 0:08:14.720 In fact, this is an industry that we knew for 0:08:14.800 --> 0:08:17.440 booms and busts, but the moment it's just on a 0:08:17.520 --> 0:08:20.760 one way boom trajectory. Do you think that really is 0:08:20.880 --> 0:08:21.800 the right way for the. 0:08:21.760 --> 0:08:23.120 Market to be seeing it right now? 0:08:24.000 --> 0:08:28.440 Well, obviously there is never just one way, especially when 0:08:28.440 --> 0:08:31.840 we're looking at the market prices, they are parabolic, so 0:08:32.120 --> 0:08:34.480 in terms of technical levels or in terms of what 0:08:34.600 --> 0:08:37.880 happened in the past, we do expect a correction because 0:08:37.880 --> 0:08:41.000 the valuations have done absolutely ballistic, and we know that 0:08:41.040 --> 0:08:45.240 there are boom and bus circles in this industry. It 0:08:45.320 --> 0:08:48.520 is just that AI and the demand for AI hardware 0:08:48.640 --> 0:08:51.400 will probably make these cycles a little bit longer than 0:08:51.440 --> 0:08:53.920 they have been before, but they're not going to just 0:08:54.400 --> 0:08:57.280 you know, make them an existent anymore. So I think 0:08:57.320 --> 0:08:59.720 that there is a risk that all of those who 0:08:59.800 --> 0:09:04.000 are predicting that there will be no bus cycles anymore 0:09:04.040 --> 0:09:06.600 in the memories of industry are probably mistaken. 0:09:07.960 --> 0:09:10.839 Eupe Oscar desh Gayer Swiss quote all across the news 0:09:10.840 --> 0:09:11.400 and the markets. 0:09:11.400 --> 0:09:12.040 Thank you so much. 0:09:12.080 --> 0:09:13.839 Now, coming up, we're going to hear a lot more 0:09:13.840 --> 0:09:16.840 from Micron CEO on demand for memory and what they're 0:09:16.840 --> 0:09:19.160 doing to adjust the supply constraint. 0:09:19.160 --> 0:09:20.520 That's next. This is Bloomberg Tech. 0:09:34.720 --> 0:09:37.640 Qual Com reached the deal with TikTok owner bike Dance 0:09:37.720 --> 0:09:40.880 to supply chips for AI data centers. That's, according to sources, 0:09:41.000 --> 0:09:43.840 marking a key win for a company trying to expand 0:09:43.880 --> 0:09:48.200 from smartphone processes into AI infrastructure. Bloomberg's Chip reported Inking 0:09:48.559 --> 0:09:51.440 just broke that story. The markets responding qual come up 0:09:51.440 --> 0:09:53.600 seven percent, a fresh record high. 0:09:53.920 --> 0:09:55.280 You remember when Christiano was. 0:09:55.200 --> 0:09:56.680 On the show a few weeks ago and he wouldn't 0:09:56.720 --> 0:09:58.600 say who the customer was. He was saying, Oh, it's 0:09:58.640 --> 0:10:01.000 a hyperscaler, it's byte Dance. 0:10:01.640 --> 0:10:04.160 This is according to our reporting, Yes, and we believe 0:10:04.160 --> 0:10:06.560 there's more to come, that this is kind of a 0:10:06.559 --> 0:10:09.920 breakthrough for them in at least one area of this market. 0:10:10.320 --> 0:10:13.600 And according to our reporting, we should expect more to 0:10:13.600 --> 0:10:14.680 come on the customer list. 0:10:15.280 --> 0:10:19.079 And it's millions of a six And so where and 0:10:19.120 --> 0:10:22.120 why does a company like byte Dance come to Qualcom 0:10:22.160 --> 0:10:22.679 at this moment? 0:10:23.520 --> 0:10:26.880 Yeah, I mean Qualcom has a long history in the 0:10:26.920 --> 0:10:30.040 chip industry. It's very skilled very It was a pioneer 0:10:30.080 --> 0:10:32.199 of something on the sc system on chips, which is 0:10:32.200 --> 0:10:34.760 putting a lot of components together on one piece of silicon, 0:10:35.400 --> 0:10:38.160 and it's done very well in very high volume market. 0:10:38.240 --> 0:10:40.360 So obviously it has a lot of skills. Though it 0:10:40.360 --> 0:10:42.360 would be useful if you are trying to get your 0:10:42.360 --> 0:10:44.600 own solutions to market and volume quickly. 0:10:44.720 --> 0:10:47.120 So this is what's interesting about the A six part right. 0:10:47.480 --> 0:10:51.600 Qualcon is a fabulous chip maker, but essentially instead of 0:10:51.920 --> 0:10:54.720 having its chip, it's doing it on behalf of a 0:10:54.760 --> 0:10:57.720 customer kind of how broadcomes done for various people, for 0:10:57.720 --> 0:10:58.600 example TPU. 0:10:58.880 --> 0:10:59.760 How does that work? 0:11:00.040 --> 0:11:02.520 Yeah, I mean the way it looks at the moment, 0:11:02.520 --> 0:11:04.880 and we'll get more when Qualcomm does its analyst day 0:11:04.920 --> 0:11:08.840 coming up this summer. They're pursuing two strategies. Their own chips, 0:11:08.880 --> 0:11:12.199 their own processors, so rivals to in videos products if 0:11:12.200 --> 0:11:15.640 you like, but also the broadcrom strategy as well, which is, look, 0:11:15.760 --> 0:11:17.680 you've got your ideas, you've got your designs, but you 0:11:17.720 --> 0:11:20.200 don't really know quite how to get this done in 0:11:20.200 --> 0:11:22.080 the kind of volumes that you need to do. Give 0:11:22.080 --> 0:11:24.000 it to UDS, we'll get it across the line for you. 0:11:24.120 --> 0:11:26.320 That's kind of the role that they're looking at. 0:11:26.160 --> 0:11:29.600 Here thinking on all things qual Com. We thank you 0:11:29.640 --> 0:11:30.000 so much. 0:11:30.040 --> 0:11:33.000 We've got plenty more on chips because shares a Micron 0:11:33.160 --> 0:11:36.679 absolutely spiking today. It is now a one trillion dollar 0:11:36.760 --> 0:11:39.920 company if it holds this almost seventeen percent game UBS 0:11:39.960 --> 0:11:41.880 actually raised its price target on the memory chip, make 0:11:41.920 --> 0:11:42.160 it to. 0:11:42.120 --> 0:11:42.720 A street high. 0:11:42.720 --> 0:11:46.160 I've get this and twenty five dollars from five hundred 0:11:46.160 --> 0:11:48.320 and thirty five, and the new target implies the company's 0:11:48.360 --> 0:11:51.160 valuation could reach one point eight trillion now. On Friday, 0:11:51.240 --> 0:11:53.720 Blue Moost Tyler Kendles sat down with Micron President and 0:11:53.760 --> 0:11:57.160 CEO san Jamirotra about the company's expansion of chip production. 0:11:57.360 --> 0:11:58.920 When here in the United States, take a listen. 0:12:00.679 --> 0:12:06.280 Memory today is absolutely key across all industries that have 0:12:06.360 --> 0:12:10.520 electronic systems, and Micron is of course investing in Boise, 0:12:10.720 --> 0:12:15.200 Idaho building our leading ASH fab that's for leading ash 0:12:15.600 --> 0:12:21.079 memory that goes into smartphones, PC's servers, and that leading 0:12:21.160 --> 0:12:25.040 edge memory in Boise, Idaho will bring first wafers out 0:12:25.240 --> 0:12:28.040 middle of next year and then ramp up from there on. 0:12:28.320 --> 0:12:31.320 We'll have a second fab in Boise, Idaho soon to 0:12:31.440 --> 0:12:34.520 follow that start first wave first by end of twenty 0:12:34.600 --> 0:12:40.079 twenty eight there and then we have production planned for Syracuse, 0:12:40.120 --> 0:12:43.560 New York area, where we will build over time a 0:12:43.600 --> 0:12:47.800 mega cluster or four fabs. And you can see two 0:12:47.880 --> 0:12:51.479 hundred billion dollars of investments that Micron is making here 0:12:51.679 --> 0:12:55.840 in America to bring these long life cycle production that 0:12:55.920 --> 0:12:59.880 will be managed here in Manassas, Virginia, along with production 0:13:00.160 --> 0:13:04.280 in Boise, Idaho, and Syracuse, New York. And that will 0:13:04.320 --> 0:13:08.559 bring Micron's total production over the course of about next 0:13:08.640 --> 0:13:11.880 ten years as we ramp up all these multiple fabs 0:13:12.080 --> 0:13:16.120 to about forty percent of our production. By comparison, it 0:13:16.240 --> 0:13:19.600 is about ten percent today and all of that ten 0:13:19.640 --> 0:13:23.880 percent comes from this site here in Manassas for Micron, 0:13:24.120 --> 0:13:28.240 and this will totally our investments massive investments in long 0:13:28.280 --> 0:13:32.199 life cycle technology nodes as well as leading as technology 0:13:32.240 --> 0:13:36.000 nodes to serve these vast markets that are really surging 0:13:36.040 --> 0:13:39.320 in demand driven by AI. Micron is going to be 0:13:39.320 --> 0:13:43.160 bringing those investments that's semiconductive manufacturing and in the process 0:13:43.559 --> 0:13:47.280 create ninety thousand new jobs here in the US as well. 0:13:47.400 --> 0:13:47.559 Well. 0:13:47.600 --> 0:13:50.760 On this point of demand and how this investment is 0:13:50.880 --> 0:13:55.240 seeking to help breach that growing demand. I'm wondering, how 0:13:55.240 --> 0:13:58.720 long do you expect the shortage of memory chips to last? 0:13:58.800 --> 0:14:00.640 When can we expect an easy. 0:14:00.760 --> 0:14:04.360 Of course, the demand for memory has really searched, and 0:14:04.440 --> 0:14:07.600 that is because of the importance and the value and 0:14:07.640 --> 0:14:12.200 the capability of memory that is really essential for all 0:14:12.640 --> 0:14:16.640 advanced systems. And yes, there is a shortage, but Micron 0:14:16.720 --> 0:14:20.920 is working hard to increase supply through these projects here 0:14:21.280 --> 0:14:26.320 in America, here in Manassa's Virginia, Boise and New York, 0:14:26.680 --> 0:14:30.960 and we see this shortage continuing beyond, well beyond twenty 0:14:31.040 --> 0:14:34.800 twenty six timeframe. But the important thing is that Micron 0:14:34.880 --> 0:14:38.760 is working hard with our customers, working also on the 0:14:38.880 --> 0:14:43.440 long term the supply agreements with our customers to really 0:14:43.640 --> 0:14:47.240 ensure that they can have predictability for supply, and of 0:14:47.280 --> 0:14:52.000 course Micron can have the confidence for the investments that 0:14:52.080 --> 0:14:54.080 we are really committing to here for the long haul. 0:14:54.280 --> 0:14:54.440 Well. 0:14:55.120 --> 0:14:58.760 Historically, memory is a cyclical business, right periods of boom, 0:14:58.800 --> 0:15:01.360 periods a bus I'm wondering if two hundred billion dollar 0:15:01.480 --> 0:15:04.920 investment here in the US signals perhaps more of a 0:15:05.000 --> 0:15:08.560 confidence that that demand, that high demand is going to 0:15:08.560 --> 0:15:12.520 be permanent, or are their concerns here that the industry 0:15:12.520 --> 0:15:14.240 could be overbuilding capacity. 0:15:14.800 --> 0:15:17.040 You know, of course, what we are doing is building 0:15:17.080 --> 0:15:21.040 these fabs which are very long lead time items. As 0:15:21.080 --> 0:15:23.480 you can see in terms of what we are doing 0:15:23.560 --> 0:15:26.560 in Boise in New York, it really takes several years 0:15:26.680 --> 0:15:30.600 just to build construct the shell. How we equip that 0:15:31.640 --> 0:15:36.080 shell really very much depends on our latest assessments of 0:15:36.160 --> 0:15:38.960 demand at a given time. So important thing is to 0:15:39.040 --> 0:15:42.880 have that preparedness to meet the market demand, and memory 0:15:42.920 --> 0:15:46.200 has become a key enabler. It is a strategic asset 0:15:46.600 --> 0:15:49.880 for our customers today. It is a strategic asset for 0:15:50.000 --> 0:15:55.800 AI across consumer as well as data center industries, because 0:15:55.840 --> 0:15:59.880 without memory, you don't really have that intelligence that is 0:16:00.040 --> 0:16:04.720 critically important for the future roadmaps the doward customers have. 0:16:06.400 --> 0:16:10.000 That was Micron President and CEO Sanjay Morota speaking with 0:16:10.080 --> 0:16:12.320 our own Tyler Kendle. Now coming up, big banks are 0:16:12.320 --> 0:16:16.720 looking to hire more AI specialists and shrink traditional banking roles. 0:16:17.040 --> 0:16:18.240 This is Bloomberg Tech. 0:16:30.800 --> 0:16:31.280 Wall Street. 0:16:31.360 --> 0:16:33.760 Well, it's getting caught up in aianks of course, and 0:16:33.920 --> 0:16:37.200 looking to hire more AI specialists and actually shrink traditional 0:16:37.240 --> 0:16:40.360 banking roles. Bloomberg has the latest on too highly sought 0:16:40.400 --> 0:16:43.680 after trainers in finance teaching Wall Street bankers how to 0:16:43.800 --> 0:16:46.360 use AI tools. Get this, They're chatting twenty five thousand 0:16:46.400 --> 0:16:46.720 dollars a. 0:16:46.760 --> 0:16:47.640 Day for the training. 0:16:47.800 --> 0:16:51.880 Bloomberg Sally Bakwell is here with one particular evidence that 0:16:52.040 --> 0:16:56.800 banks might be apologizing for calling certain people lower value 0:16:56.880 --> 0:16:59.560 human capital, but on the other side of things, are 0:16:59.560 --> 0:17:01.600 still really committing to the training side of things. 0:17:01.960 --> 0:17:03.960 That is right. I think what we're seeing here is 0:17:03.960 --> 0:17:06.760 Wall Street having a little bit of an AI reality check. 0:17:07.000 --> 0:17:09.359 It's recognizing that AI is not just a tool for 0:17:09.400 --> 0:17:13.600 efficiency anymore. It is also a requirement for survival. And 0:17:13.800 --> 0:17:17.480 so we have these two former soft bank fund managers 0:17:17.760 --> 0:17:20.520 who have who are basically cashing in on that they've 0:17:20.560 --> 0:17:23.280 set up this firm. It's called Wall Street Prompt and 0:17:23.320 --> 0:17:26.919 it's essentially to teach elite bankers how to stop their 0:17:27.000 --> 0:17:30.359 jobs from being automated. And indeed, the eyewatering numbers that 0:17:30.359 --> 0:17:32.439 they can charge twenty five thousand dollars a day and 0:17:32.480 --> 0:17:34.800 that they have a two month backlog. And what this 0:17:34.920 --> 0:17:37.840 really speaks to is that the biggest hurdle to banks 0:17:37.960 --> 0:17:41.679 now is not essentially accessing the AI software they can 0:17:41.760 --> 0:17:43.040 get all of that, they can pay for that, and 0:17:43.080 --> 0:17:45.919 they have invested millions and billions into doing that. But 0:17:46.000 --> 0:17:50.320 the hurdle is ensuring that their senior professional professionals have 0:17:50.359 --> 0:17:53.679 a kind of AI fluency that makes them productive and 0:17:53.720 --> 0:17:56.399 that can keep the financial institution competitive. 0:17:57.359 --> 0:18:00.760 Sally, what's wild about Wall Street prompt It's like less 0:18:00.800 --> 0:18:03.760 than a year old and it has real customers Like 0:18:04.320 --> 0:18:06.320 this is obviously one of the most read stories on 0:18:06.359 --> 0:18:09.160 Bluebow Tunnel. You get why, but just explain to us, 0:18:09.160 --> 0:18:10.960 like what they've achieved and also why they want to 0:18:10.960 --> 0:18:11.720 move to Singapore. 0:18:12.560 --> 0:18:12.760 Right. 0:18:13.359 --> 0:18:16.440 So, Yeah, they were founded just last year and they 0:18:16.440 --> 0:18:19.920 have clients including Bank of America, including City, including t 0:18:20.160 --> 0:18:22.840 row Price. And what they're doing is they're going into 0:18:22.880 --> 0:18:25.719 banks and they're having training sessions with twenty five to 0:18:25.800 --> 0:18:30.680 thirty employees, and they're saying, you know, they're using Google, 0:18:30.720 --> 0:18:36.080 Gemini and alongside FBI style behavioral analysis in order to 0:18:36.200 --> 0:18:40.040 spot red flags in founder pitch videos for example, they're 0:18:40.040 --> 0:18:44.040 also teaching them how to use Chatchibt and Claude in 0:18:44.240 --> 0:18:48.840 order to analyze earnings transcripts for the most market moving 0:18:48.960 --> 0:18:54.040 information and build financial forecasting models on that. Now they 0:18:54.040 --> 0:18:57.520 are potentially looking to expand in Singapore because that is 0:18:57.560 --> 0:19:00.840 where they have put particular focus on it, suring that 0:19:01.200 --> 0:19:04.600 anyone who wants to move into the financial sector is 0:19:04.840 --> 0:19:08.320 very AI fluent. So there is a bit of a 0:19:08.320 --> 0:19:12.040 competitive competitive edge in Asia and Singapore in particular, and 0:19:12.200 --> 0:19:16.520 that's really shining spotlight on the need for US financial 0:19:16.560 --> 0:19:18.360 firms to do that as well. I mean, we've heard 0:19:18.400 --> 0:19:22.920 from so many of them that JP Morgan has rolled 0:19:22.920 --> 0:19:26.679 out LM Suite, a generative AI tool. Goldman is working 0:19:26.720 --> 0:19:29.120 with Anthropic. Bank of America says that it's made its 0:19:29.160 --> 0:19:32.399 developers more productive with AI, and that mean Jamie Diamond 0:19:32.400 --> 0:19:35.000 says he uses it every day. So the need is 0:19:35.040 --> 0:19:37.959 clear that they need to upseeel their staff. 0:19:39.359 --> 0:19:43.080 Bloomberg Sally bake Well absolutely top reporting, Thank you very much. 0:19:43.680 --> 0:19:47.960 Pope Leo the fourteenth says AI should be quote disarmed 0:19:48.280 --> 0:19:51.840 to protect humanity from its dangers, calling for making AI 0:19:52.000 --> 0:19:56.399 more human friendly and freeing it from monopolistic control. The 0:19:56.440 --> 0:19:59.600 comment comes as the Pope and Anthropic co founder Christopher 0:19:59.600 --> 0:20:04.800 Ola launched the Pontiff's first encyclical, a document called Magnifica 0:20:05.040 --> 0:20:09.080 Humanitas Center of the Care of Human dignity in the 0:20:09.160 --> 0:20:13.359 era of Ai Bloomberg. Slavia Ratandi joins us from Rome. 0:20:13.960 --> 0:20:18.239 Flavia fascinating. Let's please just start with the basics, the 0:20:18.280 --> 0:20:21.400 basics of the document, what's in it, and I suppose 0:20:21.440 --> 0:20:26.560 summarizing like the Pope and the attitude towards Ai. 0:20:29.800 --> 0:20:34.160 Absolutely, that was quite I say, the pretty powerful message 0:20:34.240 --> 0:20:37.560 that came from the Pope. Just to give you an idea, 0:20:37.600 --> 0:20:40.480 this is the first encyclical by the new pope elected 0:20:40.600 --> 0:20:43.760 last year, and also the encyclical itself is the most 0:20:44.800 --> 0:20:48.960 the most important, the most official actor from Ope, so 0:20:49.080 --> 0:20:53.520 really includes some of the priorities of a new pope 0:20:53.760 --> 0:20:57.439 and the fact that they chose artificial intelligence. And not 0:20:57.560 --> 0:21:02.119 only that, but the waygual intelligence is changing our lives 0:21:02.119 --> 0:21:05.560 that might change our lives, our lives in the future. 0:21:05.640 --> 0:21:09.359 I think it's really really says something as you said, 0:21:09.440 --> 0:21:14.000 it actually uh used this world deserned and desermed. It 0:21:14.040 --> 0:21:17.320 needs to be desermed. It doesn't mean that the artificial 0:21:17.359 --> 0:21:26.040 intelligence must be somehow blocked, but must be regulated. That 0:21:26.320 --> 0:21:30.919 was the main thing. And and also the fact that 0:21:31.440 --> 0:21:33.560 it basically said that it must be used of course, 0:21:34.119 --> 0:21:38.119 uh for for you know, for for just for for 0:21:38.520 --> 0:21:43.560 good intentions and and kind of indicated all the possible risks. 0:21:44.160 --> 0:21:50.480 For example, indicated the factor that using computing, using artificial 0:21:50.520 --> 0:21:54.440 intelligence in a warfare in the military and defense sector 0:21:54.600 --> 0:21:59.080 is really dangerous, adding and a quote no algorithms can 0:21:59.160 --> 0:22:01.600 make war morally acceptable. 0:22:02.560 --> 0:22:04.680 Seems to be a lot of things going on outside 0:22:04.800 --> 0:22:08.000 the Rome Bureau right now. Flavia Ratney of Bloomberg talking 0:22:08.000 --> 0:22:12.359 about what is about magnificent humanity? That is, ultimately what 0:22:12.560 --> 0:22:14.560 magnifica humanitus is all about. 0:22:14.720 --> 0:22:15.639 Ed well, so interesting. 0:22:15.680 --> 0:22:17.600 It's about one hundred and thirty five years after the 0:22:17.680 --> 0:22:21.080 original pop Leo talked about of new things the first 0:22:21.119 --> 0:22:24.240 Industrial Revolution, how to help humanity through that coming of 0:22:24.280 --> 0:22:26.440 age of technology, and now they look at the age 0:22:26.480 --> 0:22:26.800 of AI. 0:22:27.640 --> 0:22:30.160