WEBVTT - Regulators Warn of New Era of Cyber Risk from AI

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is alive

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<v Speaker 1>from coast to coast with Caroline Hyde in New York

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<v Speaker 1>and vow In sent Francisco.

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<v Speaker 2>This is Bloomberg Tech coming up.

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<v Speaker 3>Concerns keep rising around anthropics new AI model mythos as

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<v Speaker 3>US officials won Wall Street that the tool could usher

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<v Speaker 3>in an era of cyber risk.

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<v Speaker 4>Plus, we speak with Roblox CEO David Zooki as the

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<v Speaker 4>company introduces special accounts for younger children and teens.

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<v Speaker 3>And we recap the historic trip around the Moon and

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<v Speaker 3>back after the Artemis two cruise splashed down safely on

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<v Speaker 3>Friday evening.

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<v Speaker 4>And ed on Friday evening, we were wrapping up a

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<v Speaker 4>week for the stock market that was the best. That's

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<v Speaker 4>November on the NaSTA one hundred, and some of that

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<v Speaker 4>cautious risk on attitude still sits with us on the

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<v Speaker 4>NAST one hundred today. As we see the oil is

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<v Speaker 4>thrusting higher. Why then the optimism in markets when the

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<v Speaker 4>inflatory pressure is clear, and that very sensitive view on

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<v Speaker 4>a CEASFI just clings in the balance. As we understand,

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<v Speaker 4>the US does move to blockade and the straight off

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<v Speaker 4>hor moos I'm looking at oil as we see just

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<v Speaker 4>another five percent on the day.

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<v Speaker 5>Ed.

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<v Speaker 3>Okay, let's get the latest details on Iran and the

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<v Speaker 3>administration Frolomber Washington correspondent Tyler Kendall. Tyler go through the

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<v Speaker 3>content of the president's true Social post that came just

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<v Speaker 3>after ten am Eastern time and give us the latest

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<v Speaker 3>of the situation, particularly with the straight of horror moves

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<v Speaker 3>and with Iran.

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<v Speaker 6>Hey and well at this point, this new threat coming

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<v Speaker 6>from President Trump aren't True Social saying that if any

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<v Speaker 6>of Iran's attack ships come near the US IS blockade,

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<v Speaker 6>then they will be quote immediately eliminated. This comes after

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<v Speaker 6>a flurry of comments from Iranian officials this morning saying

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<v Speaker 6>that the country is preparing to take action if it's

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<v Speaker 6>shipping is threatened, including threatening to hit ports in the

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<v Speaker 6>Persian Gulf. Pair that with a statement last night from

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<v Speaker 6>the IRGC saying that if any US military vessels enter

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<v Speaker 6>into the Strait of Hermus, Iran would view that as

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<v Speaker 6>violation of the ceasefire agreement. Now we have gotten a

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<v Speaker 6>few more details from the administration about this blockade, including

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<v Speaker 6>in a notice scene by Bloomberg News saying that if

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<v Speaker 6>any of Ran. If any ship is left in Iranian waters,

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<v Speaker 6>they could be subject to quote interception, diversion, and capture.

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<v Speaker 6>US Central Command had outlined that this blockade will extend

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<v Speaker 6>to all Iranian ports up and down the coast, including

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<v Speaker 6>to the east of the Strait of Hermus. However, those

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<v Speaker 6>vessels that are not going to or from Iranian ports

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<v Speaker 6>will ultimately not be part of this. However, we should

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<v Speaker 6>mention that they may still be subject for search of

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<v Speaker 6>the presence of contraband cargo. And this comes amid of

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<v Speaker 6>course a massive military build up by the US and

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<v Speaker 6>the region. The US currently has about twenty warships that

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<v Speaker 6>they could deploy for this operation. But as you were

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<v Speaker 6>alluding to at the top of this program, there does

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<v Speaker 6>seem to still be hope that negotiates could be ongoing.

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<v Speaker 6>President Trump did say in an interview yesterday that he

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<v Speaker 6>felt that Roan would come to the negotiating table when

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<v Speaker 6>it comes to the US's top issue of dismantling its

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<v Speaker 6>nuclear program, And we heard from the Pakistani leader earlier

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<v Speaker 6>today saying that those efforts to keep the dialogue up

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<v Speaker 6>are still ongoing.

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<v Speaker 4>Many a headline Tyler Kendall reads through it all for US,

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<v Speaker 4>we so appreciate it. Look, with oil back above one

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<v Speaker 4>hundred dollars, stocks while they've been wavering today still managing

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<v Speaker 4>to cling onto gains. But President Trump is of course

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<v Speaker 4>ordering that blockade of the straight Orf forward moves, and

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<v Speaker 4>we want to give you the macro picture darkening, but

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<v Speaker 4>also focus on some microews. Intel has managed to stage

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<v Speaker 4>a record breaking comeback. For example, renumex Common Rhyinikey is

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<v Speaker 4>here with a detail of what manages to outperform when

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<v Speaker 4>the macrohead wind bloom large Intel extraordinary moves. I mean,

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<v Speaker 4>it's hard to discuss war and conflict to one side

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<v Speaker 4>and individual stocks, but we have to win the show.

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<v Speaker 7>What you see, Yeah, well this stock has had really

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<v Speaker 7>an incredible run. So it's up today for the ninth

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<v Speaker 7>day in a row. This is more than fifty percent

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<v Speaker 7>gain in that time.

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<v Speaker 2>And it's had really.

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<v Speaker 7>A spate of good news that's just gotten investor momentum

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<v Speaker 7>back into shares.

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<v Speaker 6>Here.

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<v Speaker 7>So you had the news that they're buying back half

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<v Speaker 7>of a plan in Ireland from a public global management.

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<v Speaker 7>Then you go into the announcement that they're going to

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<v Speaker 7>be with Terrifab, you know, to develop semiconductors for Tesla

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<v Speaker 7>SpaceX and then they also announced a commitment for Alphabet's

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<v Speaker 7>Google to use future generations of some of their processors

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<v Speaker 7>in data centers. So these are all great things that

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<v Speaker 7>investors are really looking for. They want more coming out

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<v Speaker 7>of this company. They want to see sort of the

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<v Speaker 7>turnaround taking place. And this is interesting because Intel's come

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<v Speaker 7>off of a very choppy few years. It was up

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<v Speaker 7>eighty percent last year, but down sixty percent the year before,

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<v Speaker 7>and there's been just a lot of like an overhang.

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<v Speaker 7>As you know, they got a new CEO and they're

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<v Speaker 7>coming into this turnaround and we're starting to see some

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<v Speaker 7>glimmers of hope there come.

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<v Speaker 3>And it's data that I had to double check on

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<v Speaker 3>the Bloomberg Tunnel, not because.

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<v Speaker 2>I don't believe you. I do.

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<v Speaker 3>It's unbelievable of itself, right, that level of gain over

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<v Speaker 3>nine sessions, fifty three percent gain. But you make the

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<v Speaker 3>point just building what you just said that actually last

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<v Speaker 3>year was pretty good as well, and so there's a

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<v Speaker 3>broader recovery story with Intel. What is the market saying

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<v Speaker 3>about how they feel on the turnaround?

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<v Speaker 7>Yeah, I mean, I think investors are really voting with

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<v Speaker 7>their dollars here. They're feeling good, they're feeling like there's

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<v Speaker 7>a progress being made, and they're looking really long term

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<v Speaker 7>for this company going forward. I mean, I think it's

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<v Speaker 7>important to point out that it does report results in

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<v Speaker 7>two weeks, but investors are looking even more long term

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<v Speaker 7>for progress in their foundry. They want to see more

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<v Speaker 7>customers there and seeing that, you know, there really could

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<v Speaker 7>be a lot of gains ahead. You know, one analyst

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<v Speaker 7>that I spoke to you said there's more upside here

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<v Speaker 7>potentially than in Vidia, just because we've seen such an

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<v Speaker 7>incredible run for Nvidia. Intel's had an incredible run here,

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<v Speaker 7>but there could be more to come. You know, it's

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<v Speaker 7>still be below dot com era peak, So an interesting

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<v Speaker 7>another milestone that we're watching.

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<v Speaker 4>Isn't it funny that it was Jay Goldberg of Seaport

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<v Speaker 4>who gave you that view, and he's the only cell

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<v Speaker 4>rating really everyone in video, so that sort of supports

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<v Speaker 4>is his bearish take on that company as well as

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<v Speaker 4>bullish on Intel. But the rest of the ANAS community

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<v Speaker 4>are a bit more mixed. So you paint a picture

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<v Speaker 4>of this stock getting expensive.

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<v Speaker 7>They yes, So the evaluation is actually quite high. It's

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<v Speaker 7>trading let me say why I get this right. More

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<v Speaker 7>than ninety times estimated earnings over the next twelve months.

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<v Speaker 7>That's very high, especially when you think about the rest

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<v Speaker 7>of sort of the semi space, and you know in Vidia,

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<v Speaker 7>I think in Video is at about twenty one times

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<v Speaker 7>forward earnings. The thing that I hear though from investors

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<v Speaker 7>in analysts is that maybe it's not the right way

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<v Speaker 7>to be looking at this stock right now. There are

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<v Speaker 7>other things that make more sense if you're looking to

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<v Speaker 7>invest than just this one measure of valuation.

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<v Speaker 2>And for what it's worth.

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<v Speaker 3>Intel up almost three percent in the session, ninth straight

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<v Speaker 3>day of gains, longest streak of gains since September of

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<v Speaker 3>twenty twenty three. Bloombers come and Ryani Key with the

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<v Speaker 3>must read on the Bloomberg terminon dot com. Now coming

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<v Speaker 3>up a conversation with Caris Fragg Hacker one CEO and

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<v Speaker 3>Peter Singlehurst to Bailey Gifford on Anthropics' latest model mythos

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<v Speaker 3>and in part it's soaring valuation that's next.

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<v Speaker 2>This is Bloomberg Tech.

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<v Speaker 3>Wall Street banks including JP Morgan, Goldman, Sachs, and Morgan

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<v Speaker 3>Stanley are part of a small closed group with access

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<v Speaker 3>to anthropics Mythos. They're testing the powerful new AI model

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<v Speaker 3>to identify vulnerabilities and strengthen defenses. After Bloomberg reported the

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<v Speaker 3>US officials warned Wall Street the myphos kudosher in a

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<v Speaker 3>new era of cyber risk. Other global regulators are watching closely.

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<v Speaker 3>Over the weekend, Bloomberg reported the Bank of England is

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<v Speaker 3>preparing for its own talks on the potential dangers.

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<v Speaker 2>Joining us to.

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<v Speaker 3>Discuss is Cars Spragg's CEO of the cybersecurity firm Hacker one.

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<v Speaker 3>And there is a great reason to have you onto

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<v Speaker 3>the program to talk about mythos and the cybersecurity context

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<v Speaker 3>because what Hacker one does, it's the biggest offer of

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<v Speaker 3>bug bounties.

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<v Speaker 8>Right.

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<v Speaker 3>You pair companies all sorts with someone that can identify

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<v Speaker 3>vulnerability and then in some cases suggests how to patch it.

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<v Speaker 3>That's exactly how the banks are supposed to be using methos.

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<v Speaker 3>And I wonder just initially your take on the model

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<v Speaker 3>and what you know about it.

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<v Speaker 9>Well, I think it's very exciting that we are starting

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<v Speaker 9>to see capabilities where we can at scale identify vulnerabilities

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<v Speaker 9>more quickly and use them in a defensive capability to

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<v Speaker 9>eliminate that risk, and so this is a very great

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<v Speaker 9>compliment to what we have in doing for decades, which

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<v Speaker 9>is human driven vulnerability discovery. Where the bottleneck truly is

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<v Speaker 9>though these days is no longer really with the vulnerability discovery,

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<v Speaker 9>but it's much more in the back part of the

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<v Speaker 9>find to fix cycle. It's how quickly can you validate

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<v Speaker 9>that those vulnerabilities are truly exploitable and how quickly can

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<v Speaker 9>you get them remediated?

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<v Speaker 2>Kara.

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<v Speaker 3>Last week I spoke to Mike Krieger, who co leads

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<v Speaker 3>Anthropics Labs, and I tried to get him to just

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<v Speaker 3>be succinct about why mythos is good in a cybersecurity context.

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<v Speaker 2>Listen to what he had to say.

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<v Speaker 10>You can't isolate a capability. I mean you probably could,

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<v Speaker 10>you know, with enough effort, but that's typically these things

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<v Speaker 10>kind of emerge. The fact that it is very good

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<v Speaker 10>at solving general purpose coding problems and debugging and doing

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<v Speaker 10>all the things that you'd want it to do in

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<v Speaker 10>the ordinary course of practice also makes it really good

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<v Speaker 10>for cybersecurity. It's really fascinating to actually watch it in

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<v Speaker 10>practice in a moment like this one where you know

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<v Speaker 10>it's not the revenue optimizing move in the short run,

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<v Speaker 10>but I think it's absolutely the right one.

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<v Speaker 3>If you can't isolate a model single capability in this

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<v Speaker 3>case cyber, why is it so good in that domain?

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<v Speaker 9>Well, I think about it as coding and building is

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<v Speaker 9>one side of a coin and breaking is the other side,

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<v Speaker 9>and they kind of go hand in hand.

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<v Speaker 2>And one of the truly.

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<v Speaker 9>Big advancements that Mythos has is this ability to chain

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<v Speaker 9>together exploits and basically turn what could be multiple vulnerabilities

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<v Speaker 9>into a much more critical or severe issue. And that

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<v Speaker 9>is fundamentally building and putting something together across a number

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<v Speaker 9>of building blocks.

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<v Speaker 4>Can you, Kara just push back against pats some cynicism

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<v Speaker 4>that's been building into the market about the power of Mythos,

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<v Speaker 4>some saying look at benefits anthropic to make out that

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<v Speaker 4>it's quite so powerful and actually it's not doing all

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<v Speaker 4>that much new than was already out there, or indeed

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<v Speaker 4>it's just more compute issue than actual shared terror. As

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<v Speaker 4>to why they put it into the hands of a

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<v Speaker 4>small amount of players articulate just how powerful this is.

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<v Speaker 9>Well, I think the capabilities that are explained in the

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<v Speaker 9>Mythos release are are quite good, and they're definitely in

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<v Speaker 9>an advancement. The frontiers is certainly moving, and yes, some

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<v Speaker 9>of those capabilities can be achieved with other models out there,

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<v Speaker 9>perhaps through a more complicated workflow. But what we're seeing

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<v Speaker 9>here is a general advancement and the ability of AI

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<v Speaker 9>to really play a powerful force in the cyber security space.

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<v Speaker 9>And so I would put less emphasis specifically on this

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<v Speaker 9>release of Mythos, but really acknowledge that the frontier is moving,

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<v Speaker 9>and it's moving much more quickly than security teams are

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<v Speaker 9>able to keep.

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<v Speaker 4>Up, and that frontier is being moved by other players

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<v Speaker 4>as well, and we know the opening. I's been trying

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<v Speaker 4>to work with a cyber community as well. Just we

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<v Speaker 4>had Fortealiss join the show last week and their idea is, look,

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<v Speaker 4>smaller companies should be able to have access to Methos

0:11:36.840 --> 0:11:40.360
<v Speaker 4>to be able to drive forward this vision to make

0:11:40.400 --> 0:11:42.880
<v Speaker 4>sure we're safe. Is that something hacker one wants? Would

0:11:42.880 --> 0:11:45.000
<v Speaker 4>you like to be on this small amount of group

0:11:45.040 --> 0:11:46.880
<v Speaker 4>through without their testing vulnerabilities?

0:11:47.640 --> 0:11:49.920
<v Speaker 9>Well, certainly we would like to have access to this.

0:11:50.320 --> 0:11:50.480
<v Speaker 2>Now.

0:11:50.520 --> 0:11:54.360
<v Speaker 9>I recognize the risk equation that the Anthropic has taken

0:11:54.360 --> 0:11:57.200
<v Speaker 9>here in terms of a smaller release to a limited

0:11:57.280 --> 0:12:00.680
<v Speaker 9>number of organizations, but look at Hacker one, for example,

0:12:00.760 --> 0:12:05.040
<v Speaker 9>last week alone, we automatically validated four thousand vulnerabilities that

0:12:05.080 --> 0:12:10.160
<v Speaker 9>came in through our various vulnerability discovery programs. And that

0:12:10.280 --> 0:12:13.839
<v Speaker 9>kind of capability and Mythos that would help us supercharge

0:12:13.880 --> 0:12:16.479
<v Speaker 9>our validation capabilities would be greatly appreciated.

0:12:17.679 --> 0:12:22.079
<v Speaker 3>The access to Mythos is clearly being closely controlled. It

0:12:22.200 --> 0:12:24.960
<v Speaker 3>seems strange to not bring up the war in Iran

0:12:25.400 --> 0:12:28.640
<v Speaker 3>and the competence that Iran has in as a cyber

0:12:28.720 --> 0:12:32.440
<v Speaker 3>bad actor. You know, put two and two together. What

0:12:32.600 --> 0:12:36.319
<v Speaker 3>is the likelihood that the malicious actor from Iran or

0:12:36.360 --> 0:12:39.760
<v Speaker 3>elsewhere would have access to that level of technology and

0:12:39.800 --> 0:12:40.520
<v Speaker 3>pose a threat.

0:12:40.559 --> 0:12:44.640
<v Speaker 9>Therefore, I'll put it this way, ed, I think this year,

0:12:44.640 --> 0:12:49.640
<v Speaker 9>in twenty twenty six, civilians, businesses, and organizations are markedly

0:12:49.880 --> 0:12:53.600
<v Speaker 9>less safe than we were just even last year. From

0:12:53.679 --> 0:12:55.160
<v Speaker 9>a cybersecurity perspective.

0:12:56.000 --> 0:12:57.360
<v Speaker 2>We now have much more.

0:12:57.160 --> 0:13:01.319
<v Speaker 9>Capable AI models. Those models are rapidly proliferating, even if

0:13:01.360 --> 0:13:05.720
<v Speaker 9>Mythos itself is still within limited release, and we now

0:13:05.800 --> 0:13:09.520
<v Speaker 9>have a number of sophisticated thread actors that can put

0:13:09.559 --> 0:13:12.840
<v Speaker 9>those capabilities to use, and we're seeing an increasing number

0:13:12.880 --> 0:13:16.720
<v Speaker 9>of breaches and supply chain issues across the open source

0:13:16.720 --> 0:13:18.559
<v Speaker 9>ecosystem and across corporations.

0:13:19.760 --> 0:13:22.560
<v Speaker 4>Kara, it's been great having your expertise today. Thank you, Krstig,

0:13:23.000 --> 0:13:25.800
<v Speaker 4>CEO of Hackle One. Now let's stick with Anthropic It's

0:13:25.840 --> 0:13:29.440
<v Speaker 4>power and also as investors way the powerful private market

0:13:29.520 --> 0:13:32.760
<v Speaker 4>valuations across all of AI. Let's bring in Peter Singlehurst's

0:13:32.760 --> 0:13:34.760
<v Speaker 4>head of private companies at Bailey Gifford, and you have,

0:13:35.120 --> 0:13:38.880
<v Speaker 4>of course an investment in Anthropic. Just the moon music

0:13:38.920 --> 0:13:41.840
<v Speaker 4>around Anthropic, the power that it has, the use of claud,

0:13:41.960 --> 0:13:45.400
<v Speaker 4>the enterprise adoption, it all seems to be very strong

0:13:45.480 --> 0:13:47.400
<v Speaker 4>right now, Peter, are there any concerns that you have?

0:13:49.679 --> 0:13:52.040
<v Speaker 11>I think when you own a business and when you're

0:13:52.120 --> 0:13:57.040
<v Speaker 11>investor in any company, you always have concerns around companies.

0:13:57.080 --> 0:13:58.880
<v Speaker 11>It's hard job to worry about the holdings that we have.

0:13:59.000 --> 0:14:02.440
<v Speaker 11>But I think that what we're seeing at Anthropic at

0:14:02.440 --> 0:14:06.880
<v Speaker 11>the moment is unprecedented. In fifteen years of investing, I've

0:14:07.000 --> 0:14:10.319
<v Speaker 11>never seen a company of this scale grow this quickly,

0:14:10.880 --> 0:14:13.520
<v Speaker 11>And I think what we're seeing is a company that

0:14:13.640 --> 0:14:17.640
<v Speaker 11>is really pushing the edges of the boundaries of where

0:14:17.800 --> 0:14:20.200
<v Speaker 11>AI can be brought to bear in real world applications,

0:14:20.280 --> 0:14:25.400
<v Speaker 11>initially encoding, which really broke out last year, and with

0:14:25.640 --> 0:14:29.200
<v Speaker 11>the Mythos models, we're starting to see how it can

0:14:29.240 --> 0:14:32.280
<v Speaker 11>really impact cybersecurity as well.

0:14:33.000 --> 0:14:36.600
<v Speaker 4>What has been notable apart from Mythos has been the

0:14:36.640 --> 0:14:39.840
<v Speaker 4>adoption the arr that they're managing to post thirty billion

0:14:39.840 --> 0:14:43.160
<v Speaker 4>dollars and the amount of enterprises that are now using it,

0:14:43.200 --> 0:14:45.760
<v Speaker 4>even in the face of concern that they are well

0:14:45.800 --> 0:14:49.840
<v Speaker 4>sewing the government because of the current blacklisting single out

0:14:49.880 --> 0:14:52.520
<v Speaker 4>by the Pentagon. How is that narrative driving what you

0:14:52.520 --> 0:14:53.840
<v Speaker 4>think about Anthropic at the moment.

0:14:55.720 --> 0:14:58.160
<v Speaker 11>When we invested in Anthropic, one of the reasons we

0:14:59.320 --> 0:15:02.280
<v Speaker 11>liked the business was the principal approach they took to

0:15:02.320 --> 0:15:06.120
<v Speaker 11>safety now that I think has informed how they're approaching

0:15:06.160 --> 0:15:09.720
<v Speaker 11>the Mythos models, and it's informed the approach that they've

0:15:09.720 --> 0:15:12.680
<v Speaker 11>had with the Department of War.

0:15:13.160 --> 0:15:15.080
<v Speaker 8>So whilst we would of course rather not.

0:15:15.080 --> 0:15:19.040
<v Speaker 11>See them in this disagreement with the Department of War,

0:15:19.360 --> 0:15:21.400
<v Speaker 11>I think and the company have said that there's more

0:15:21.440 --> 0:15:24.040
<v Speaker 11>that unites them than divides them with the Department of War,

0:15:24.080 --> 0:15:25.920
<v Speaker 11>and I think it's important to us to see a

0:15:25.920 --> 0:15:29.040
<v Speaker 11>company standing by the underlying principles which enables them to

0:15:29.040 --> 0:15:31.800
<v Speaker 11>flourish and enables them to attract and retain key talent.

0:15:33.840 --> 0:15:37.640
<v Speaker 3>What has been so interesting about the headline generation from

0:15:37.680 --> 0:15:40.560
<v Speaker 3>Mythos is that people are looking at the model itself.

0:15:40.920 --> 0:15:43.680
<v Speaker 3>You know, Caroline's absolutely right, the revenue run rate, all

0:15:43.720 --> 0:15:48.000
<v Speaker 3>those kind of classic measures for late stage startups, but

0:15:49.120 --> 0:15:54.280
<v Speaker 3>just your sort of response to the model's capability. Anthropics

0:15:54.360 --> 0:15:57.120
<v Speaker 3>place in a group of five or six frontier labs

0:15:57.320 --> 0:16:00.160
<v Speaker 3>that are trying to do exactly that very big model

0:16:00.240 --> 0:16:01.360
<v Speaker 3>with great capability.

0:16:03.480 --> 0:16:03.720
<v Speaker 2>Yeah.

0:16:03.800 --> 0:16:08.600
<v Speaker 11>I mean, what we've seen with these lms is that

0:16:08.960 --> 0:16:13.400
<v Speaker 11>the capabilities of the leading edge models will quickly become

0:16:13.600 --> 0:16:16.400
<v Speaker 11>available to the trailing edge models. And then what separates

0:16:16.440 --> 0:16:18.600
<v Speaker 11>the likes of Anthropic or open AI is their ability

0:16:18.680 --> 0:16:22.680
<v Speaker 11>to continuously stay at the leading edge. And so, as

0:16:23.320 --> 0:16:26.880
<v Speaker 11>you know, as a citizen, it does concern me that

0:16:26.960 --> 0:16:29.480
<v Speaker 11>there will be these capabilities which today are in the

0:16:29.480 --> 0:16:33.680
<v Speaker 11>hands of Anthropic who who will we trust? But I

0:16:33.680 --> 0:16:36.560
<v Speaker 11>think it is inevitable that these tools, whether in the

0:16:36.680 --> 0:16:41.560
<v Speaker 11>Mythos model or developed by other foundational models, will become

0:16:41.640 --> 0:16:44.240
<v Speaker 11>more widely available. And I think that leads a lot

0:16:44.240 --> 0:16:47.120
<v Speaker 11>of enterprises, a lot of governments, a lot of economic

0:16:47.160 --> 0:16:49.520
<v Speaker 11>systems vulnerable to attacks.

0:16:52.200 --> 0:16:55.080
<v Speaker 3>A lot of focus in the United States on anthropic

0:16:55.120 --> 0:16:57.560
<v Speaker 3>There was a headline this morning that open AI, which

0:16:57.600 --> 0:17:00.160
<v Speaker 3>you are not an investor in, is open a a

0:17:00.200 --> 0:17:03.920
<v Speaker 3>permanent London office having wound down the Stargate project in

0:17:03.960 --> 0:17:07.400
<v Speaker 3>the UK. I ask you all that basically to push

0:17:07.480 --> 0:17:10.560
<v Speaker 3>on whether people outside of the United States see that

0:17:10.720 --> 0:17:13.679
<v Speaker 3>same level of battle that's going on between the frontier labs,

0:17:13.840 --> 0:17:16.680
<v Speaker 3>and whether the release of a model like Netho's impacts

0:17:16.880 --> 0:17:19.480
<v Speaker 3>everyday people in the United Kingdom or in Europe.

0:17:20.960 --> 0:17:25.160
<v Speaker 11>I think in the very short term, the everyday person

0:17:25.240 --> 0:17:29.000
<v Speaker 11>on the street is not impacted this week or next week.

0:17:29.359 --> 0:17:31.920
<v Speaker 11>But are these models going to impact all of our

0:17:31.960 --> 0:17:35.720
<v Speaker 11>lives in the months and years to come? Like yes, absolutely.

0:17:36.560 --> 0:17:38.520
<v Speaker 11>I think that here in the UK, those that are

0:17:38.520 --> 0:17:41.960
<v Speaker 11>in the industry, those that follow this are just as

0:17:42.320 --> 0:17:45.480
<v Speaker 11>outware and on top of what's going on as his

0:17:45.880 --> 0:17:48.760
<v Speaker 11>in the US. But I think that within the UK

0:17:48.880 --> 0:17:53.640
<v Speaker 11>there isn't such a sort of cultural resonance of developments

0:17:54.119 --> 0:17:56.639
<v Speaker 11>in technology as perhaps there is in the US by

0:17:56.720 --> 0:17:58.320
<v Speaker 11>virtue of the fact that it's such a large and

0:17:58.359 --> 0:18:01.960
<v Speaker 11>important part of the US economy, and in the UK

0:18:02.160 --> 0:18:06.080
<v Speaker 11>sadly it is not such a dominant part of our economy.

0:18:06.320 --> 0:18:09.679
<v Speaker 4>I mean, Peter, what hasn't been notable is while we're

0:18:09.720 --> 0:18:11.760
<v Speaker 4>all spell bound by AI, the whole world has been

0:18:11.800 --> 0:18:14.720
<v Speaker 4>spell bound by space over the course of the weekend.

0:18:15.119 --> 0:18:17.760
<v Speaker 4>And I'm interested, therefore in your exposure to SpaceX and

0:18:18.200 --> 0:18:21.080
<v Speaker 4>exposure to XAI in many ways, how are you thinking

0:18:21.119 --> 0:18:24.280
<v Speaker 4>about this moment that everyone's world changes if they get

0:18:24.320 --> 0:18:26.679
<v Speaker 4>access to some of these big companies not just being private,

0:18:26.720 --> 0:18:28.720
<v Speaker 4>but potential to be public as well.

0:18:30.640 --> 0:18:33.200
<v Speaker 11>I think it's important that every day investors are able

0:18:33.280 --> 0:18:35.879
<v Speaker 11>to access these kinds of companies, and so I think

0:18:35.920 --> 0:18:38.960
<v Speaker 11>these companies coming to the public markets is overall a

0:18:39.000 --> 0:18:41.480
<v Speaker 11>good thing. I think what is in many ways a

0:18:41.520 --> 0:18:44.159
<v Speaker 11>shame for the everyday investor is that there is so

0:18:44.320 --> 0:18:47.840
<v Speaker 11>much growth that has already happened before these companies come

0:18:47.960 --> 0:18:51.040
<v Speaker 11>to the public markets. And it's not just anthropic. It's

0:18:51.040 --> 0:18:54.000
<v Speaker 11>not just SpaceX. You could look at Byte Dance, for instance,

0:18:54.040 --> 0:18:57.880
<v Speaker 11>in China. The owner of TikTok Byte Dance today is

0:18:57.920 --> 0:19:01.880
<v Speaker 11>forty to fifty times larger in revenue and profit then

0:19:02.040 --> 0:19:07.600
<v Speaker 11>Facebook was when it listed. That's a leg of growth,

0:19:07.680 --> 0:19:10.159
<v Speaker 11>an enormous amount of growth, which is a crue to

0:19:10.200 --> 0:19:14.879
<v Speaker 11>private market investors which is foregone by public markets investors.

0:19:14.880 --> 0:19:16.800
<v Speaker 11>And so this is why we invest in these companies.

0:19:16.840 --> 0:19:18.520
<v Speaker 11>It's to be able to give our clients access to

0:19:18.560 --> 0:19:22.399
<v Speaker 11>this growth that's happening privately. Historically that happen in the

0:19:22.400 --> 0:19:25.400
<v Speaker 11>public markets. But where you can only really do growth

0:19:25.440 --> 0:19:28.239
<v Speaker 11>investing properly today if you're doing it in both the

0:19:28.240 --> 0:19:29.920
<v Speaker 11>private and the public markets.

0:19:30.760 --> 0:19:32.680
<v Speaker 3>Peter, I know we've had the opportunity to speak to

0:19:32.680 --> 0:19:35.879
<v Speaker 3>you a lot recently, just very quickly. At this point,

0:19:35.960 --> 0:19:39.200
<v Speaker 3>does the market understand the economics of orbital data center

0:19:39.440 --> 0:19:41.080
<v Speaker 3>ahead of this space X ipo.

0:19:42.840 --> 0:19:45.000
<v Speaker 11>No, I don't think the market does understand the economics

0:19:45.040 --> 0:19:48.960
<v Speaker 11>of orbital data centers. I think that this is a

0:19:49.080 --> 0:19:53.040
<v Speaker 11>very nascent idea in Nason technology, and where that value

0:19:53.080 --> 0:19:55.720
<v Speaker 11>can potentially accrue I think is through the vertical integration

0:19:56.119 --> 0:19:58.800
<v Speaker 11>with the models. If we get to this place where

0:19:59.560 --> 0:20:04.399
<v Speaker 11>power for computing AI models is existential pinch point for

0:20:04.680 --> 0:20:08.040
<v Speaker 11>these businesses. So in short, no, I think it's not

0:20:08.119 --> 0:20:10.480
<v Speaker 11>yet well understood. It doesn't in a sense exist yet.

0:20:11.040 --> 0:20:13.320
<v Speaker 11>But I think what is well understood at SpaceX is

0:20:13.320 --> 0:20:16.359
<v Speaker 11>the incredible launch business they have and the incredible economics

0:20:16.359 --> 0:20:17.000
<v Speaker 11>of Starlink.

0:20:17.800 --> 0:20:21.199
<v Speaker 3>Peter Singlehurst of Bailey Gifford, thank you very much. Now

0:20:21.240 --> 0:20:24.199
<v Speaker 3>coming up, a Trump family crypto venture. It's facing some

0:20:24.280 --> 0:20:27.159
<v Speaker 3>investor backlash. We got more on that next, this is

0:20:27.160 --> 0:20:27.960
<v Speaker 3>Bloomberg Tech.

0:20:35.720 --> 0:20:37.960
<v Speaker 4>It's time now for Talking Tech and first up, World

0:20:38.040 --> 0:20:40.920
<v Speaker 4>Liberty Financial. It's a Trump family crypto venture and it's

0:20:40.960 --> 0:20:44.560
<v Speaker 4>facing an investor revolt that includes billionaire backer Justin's Sun,

0:20:44.800 --> 0:20:48.000
<v Speaker 4>who says the project is secretly building controls that len insiders,

0:20:48.000 --> 0:20:51.560
<v Speaker 4>freeze tokenholders funds and extract cash before a wave of

0:20:51.640 --> 0:20:52.800
<v Speaker 4>tokens are then unlocked.

0:20:52.920 --> 0:20:53.080
<v Speaker 2>Look.

0:20:53.119 --> 0:20:56.120
<v Speaker 4>World Liberty has roundly rejected the criticism the token trays.

0:20:56.119 --> 0:20:58.879
<v Speaker 4>They're a record low, according to Quinn Gecko. Plus, the

0:20:58.920 --> 0:21:01.680
<v Speaker 4>federal government is movie to settle in case over Amazon's

0:21:01.680 --> 0:21:04.200
<v Speaker 4>treatment of a group of contract delivery drivers, and the

0:21:04.280 --> 0:21:07.360
<v Speaker 4>National Labor Real Nations Board argued Amazon was the driver's

0:21:07.440 --> 0:21:10.439
<v Speaker 4>joint employer was therefore liable for their treatment, but the

0:21:10.480 --> 0:21:13.960
<v Speaker 4>proposed settlement would provide two weeks paid dozens of workers

0:21:14.080 --> 0:21:18.600
<v Speaker 4>without finding Amazon leavel and many college graduates are working

0:21:18.720 --> 0:21:21.480
<v Speaker 4>jobs that high schoolers could land, with almost forty three

0:21:21.520 --> 0:21:23.560
<v Speaker 4>percent of US graduates age twenty two to twenty some

0:21:23.800 --> 0:21:26.720
<v Speaker 4>underemployed as of December twenty twenty five, the worst rate

0:21:26.840 --> 0:21:30.440
<v Speaker 4>since the pandemic. Why many are blaming the rise of

0:21:30.480 --> 0:21:32.600
<v Speaker 4>AI as well as an imbalance in supply and demand

0:21:32.800 --> 0:21:35.240
<v Speaker 4>ed this is a question of AI washing. How much

0:21:35.440 --> 0:21:38.160
<v Speaker 4>is this to do with AI and companies slowing hiring

0:21:38.280 --> 0:21:40.479
<v Speaker 4>or firing. How much is it actually just that too

0:21:40.480 --> 0:21:42.560
<v Speaker 4>many people are getting degrees now for the amount of jobs.

0:21:42.400 --> 0:21:43.040
<v Speaker 2>That are out there.

0:21:43.680 --> 0:21:46.600
<v Speaker 3>It's very specific data, but it speaks to one clear thing,

0:21:46.680 --> 0:21:50.320
<v Speaker 3>which is AI is shrinking the market for white collar

0:21:50.440 --> 0:21:55.040
<v Speaker 3>entry level jobs. Data input, basic coding are the graduate

0:21:55.119 --> 0:21:56.040
<v Speaker 3>level jobs that.

0:21:55.960 --> 0:21:56.880
<v Speaker 2>You would bank on.

0:21:57.359 --> 0:22:00.159
<v Speaker 3>Now those people that have degrees can't get them. So

0:22:00.200 --> 0:22:06.080
<v Speaker 3>they're going into restaurant, retail service industries to find employment.

0:22:06.240 --> 0:22:08.760
<v Speaker 4>Yeah, even babysitting. Look basically, they've got to make the money,

0:22:08.800 --> 0:22:10.720
<v Speaker 4>still work for them, But what is the job of

0:22:10.760 --> 0:22:12.440
<v Speaker 4>the future. And there's a lot of anxiety in those

0:22:12.520 --> 0:22:15.080
<v Speaker 4>that are still at university. I speaking with the NYU

0:22:15.160 --> 0:22:18.800
<v Speaker 4>Stern professor Run Sundarajan just last week and him saying

0:22:18.800 --> 0:22:23.399
<v Speaker 4>the amount of anxiety among his current tuition folks.

0:22:23.680 --> 0:22:24.760
<v Speaker 2>But they're also all.

0:22:24.600 --> 0:22:27.760
<v Speaker 4>Getting more entrepreneurial. Everyone's spinning up a business set right and.

0:22:27.760 --> 0:22:31.600
<v Speaker 3>At the same time college applications going like that.

0:22:33.440 --> 0:22:34.560
<v Speaker 2>In Congress, we're coming up.

0:22:34.560 --> 0:22:36.919
<v Speaker 3>We're going to speak with the Roblock CEO Dave Bazuki

0:22:37.280 --> 0:22:40.360
<v Speaker 3>as the company announces new age based accounts and experiented

0:22:40.720 --> 0:22:55.240
<v Speaker 3>parental controls. This is Bloomberg Tech. Welcome back to Bloomberg Tech.

0:22:55.280 --> 0:22:57.280
<v Speaker 3>It's still the war in Iran and the situation in

0:22:57.320 --> 0:22:59.240
<v Speaker 3>the Middle East that the big driver in markets.

0:22:59.240 --> 0:23:00.160
<v Speaker 2>At the index.

0:23:00.560 --> 0:23:03.800
<v Speaker 3>Technology stocks modestly higher basically flat er up two tens

0:23:03.840 --> 0:23:06.120
<v Speaker 3>fve percent and then as that one hundred. But within

0:23:06.240 --> 0:23:10.080
<v Speaker 3>that index the outperformances in software names. Remember last week

0:23:10.240 --> 0:23:12.640
<v Speaker 3>we saw some pressure on software names that all kind

0:23:12.640 --> 0:23:15.960
<v Speaker 3>of related to displacement from AI. But the other big

0:23:15.960 --> 0:23:19.360
<v Speaker 3>factories also oil Brent the global benchmark for oil. You're

0:23:19.359 --> 0:23:22.320
<v Speaker 3>above one hundred dollars a barrel again on Brent, and

0:23:22.440 --> 0:23:24.760
<v Speaker 3>the situation is a blockade in the straightfor moves who

0:23:24.800 --> 0:23:25.920
<v Speaker 3>went through it earlier.

0:23:25.640 --> 0:23:26.480
<v Speaker 2>In the program.

0:23:27.040 --> 0:23:29.200
<v Speaker 3>There isn't a lot of newsflow outside of that carrier

0:23:29.280 --> 0:23:32.960
<v Speaker 3>that's impacting the index level for tech, but there is

0:23:33.000 --> 0:23:34.840
<v Speaker 3>other news that's driving single names.

0:23:35.000 --> 0:23:37.399
<v Speaker 4>There is and let's check in on Roadblocks, which are

0:23:37.400 --> 0:23:41.399
<v Speaker 4>significantly in the green today the online gaming platform introducing

0:23:41.440 --> 0:23:45.120
<v Speaker 4>new age based accounts, expanded parental controls for users under sixteen,

0:23:45.320 --> 0:23:47.520
<v Speaker 4>and it's of course the latest effort by the company

0:23:47.600 --> 0:23:50.320
<v Speaker 4>to really enhanced safety for its younger audience. The update

0:23:50.359 --> 0:23:52.040
<v Speaker 4>comes as a company prepares to roll out also a

0:23:52.040 --> 0:23:54.280
<v Speaker 4>new subscription plan later this month. Got a lot to

0:23:54.280 --> 0:23:56.520
<v Speaker 4>talk about with the Roadblock CEO David Zouki. It is

0:23:56.560 --> 0:23:58.480
<v Speaker 4>wonderful to be joined by you, Dave, and there is

0:23:58.520 --> 0:24:01.240
<v Speaker 4>a lot to digest here, and a lot about age verification,

0:24:01.280 --> 0:24:03.960
<v Speaker 4>a lot about verifying the developers of the games too. Dave,

0:24:04.040 --> 0:24:05.720
<v Speaker 4>just talk us through what changes you make.

0:24:07.080 --> 0:24:08.199
<v Speaker 5>Hey, thanks for having me on.

0:24:08.359 --> 0:24:10.560
<v Speaker 12>And you know, when we've talked in the past, we've

0:24:10.640 --> 0:24:14.480
<v Speaker 12>shared our commitment to setting what we believe is the

0:24:14.600 --> 0:24:20.760
<v Speaker 12>global gold standard for healthy, safe, age appropriate digital engagement.

0:24:21.280 --> 0:24:23.720
<v Speaker 5>We've been innovating on this for years and years.

0:24:23.840 --> 0:24:28.639
<v Speaker 12>We started with age check in January for communication.

0:24:29.359 --> 0:24:32.560
<v Speaker 5>What we're rolling out today is the next phase.

0:24:32.240 --> 0:24:36.280
<v Speaker 12>In that implementation of that global gold standard. That of

0:24:36.359 --> 0:24:39.040
<v Speaker 12>course includes all the other things we've done in the past,

0:24:39.119 --> 0:24:43.040
<v Speaker 12>including innovating on text filtering and non sharing of images.

0:24:43.480 --> 0:24:48.399
<v Speaker 12>So today we're announcing kids accounts and select accounts. We

0:24:48.600 --> 0:24:53.240
<v Speaker 12>use age estimation to automatically assign people to the right

0:24:53.280 --> 0:24:58.359
<v Speaker 12>account and we connect them with appropriate content. For kids' accounts,

0:24:58.640 --> 0:25:01.600
<v Speaker 12>they get mild content, things like grow a garden.

0:25:02.359 --> 0:25:04.160
<v Speaker 5>For our older users.

0:25:03.720 --> 0:25:07.520
<v Speaker 12>In select accounts, they get moderate content as well, things

0:25:07.720 --> 0:25:12.280
<v Speaker 12>like emergency response. And users who are over sixteen of

0:25:12.320 --> 0:25:15.639
<v Speaker 12>course get regular roadblocks accounts. So this for us is

0:25:15.680 --> 0:25:20.120
<v Speaker 12>just a continuous evolution in our commitment to this establishment

0:25:20.359 --> 0:25:25.040
<v Speaker 12>of a global gold standard for safety and healthy digital engagement.

0:25:25.160 --> 0:25:28.399
<v Speaker 4>Let's talk about the underlying technology and as you literate,

0:25:28.560 --> 0:25:31.280
<v Speaker 4>it gets better and better. But age verification is very tough.

0:25:31.720 --> 0:25:33.160
<v Speaker 2>How good has it been?

0:25:33.359 --> 0:25:35.400
<v Speaker 4>How many people's age is it getting right? How many

0:25:35.440 --> 0:25:37.639
<v Speaker 4>people push back or try to dispute.

0:25:38.160 --> 0:25:43.040
<v Speaker 12>Yeah, we started experimenting with facial age estimation middle of

0:25:43.160 --> 0:25:46.840
<v Speaker 12>last year laid of last year. We saw that it

0:25:46.880 --> 0:25:50.800
<v Speaker 12>was more than good enough to estimate age, and in

0:25:50.840 --> 0:25:55.960
<v Speaker 12>addition to that we use additional signals. We're constantly incorporating

0:25:56.040 --> 0:25:59.520
<v Speaker 12>other signals in addition to facial age estimation to put

0:25:59.520 --> 0:26:02.600
<v Speaker 12>people in the right categories. It's enabled us to do

0:26:02.760 --> 0:26:06.000
<v Speaker 12>a lot of future things that not really many other

0:26:06.160 --> 0:26:09.840
<v Speaker 12>social networking or social media apps are doing, and that

0:26:09.920 --> 0:26:13.520
<v Speaker 12>includes connecting people with people of the right age, not

0:26:14.200 --> 0:26:18.240
<v Speaker 12>connecting older people with younger people when they're chatting, and

0:26:18.320 --> 0:26:21.600
<v Speaker 12>with this new innovation today, of course doubling down on

0:26:21.680 --> 0:26:23.520
<v Speaker 12>connecting people with the right content.

0:26:24.840 --> 0:26:28.080
<v Speaker 3>Dave, the balance is between sort of codifying, taking action

0:26:28.680 --> 0:26:31.719
<v Speaker 3>on age verification, which you've done, and then the impact

0:26:31.800 --> 0:26:35.280
<v Speaker 3>on engagement daily active users. What have you and the

0:26:35.320 --> 0:26:38.280
<v Speaker 3>team modeled for on how you see daily active use

0:26:38.320 --> 0:26:41.800
<v Speaker 3>as an engagement responding to this new set of rules.

0:26:42.600 --> 0:26:45.560
<v Speaker 12>Yeah, yeah, thank you for highlighting this, and I do

0:26:45.600 --> 0:26:49.000
<v Speaker 12>want to highlight as we run this company, we're always

0:26:49.080 --> 0:26:52.040
<v Speaker 12>leaning in on doing what we believe is the right

0:26:52.119 --> 0:26:55.760
<v Speaker 12>thing for our huge community almost one hundred and fifty

0:26:55.760 --> 0:27:00.160
<v Speaker 12>million daily active users, and respecting that community and building

0:27:00.200 --> 0:27:04.800
<v Speaker 12>an innovative product with safety built in by default. We've

0:27:04.840 --> 0:27:10.120
<v Speaker 12>seen sixty five percent of our US daily users now

0:27:10.280 --> 0:27:14.440
<v Speaker 12>age check. That number continues to grow and we're optimistic

0:27:14.480 --> 0:27:15.000
<v Speaker 12>about it.

0:27:15.320 --> 0:27:17.200
<v Speaker 5>So we have modeled this in.

0:27:17.400 --> 0:27:19.679
<v Speaker 12>We have a lot of other things coming throughout the

0:27:19.760 --> 0:27:23.359
<v Speaker 12>year as well, and we continue to focus on doing

0:27:23.400 --> 0:27:25.240
<v Speaker 12>the right thing for our community.

0:27:26.480 --> 0:27:30.639
<v Speaker 3>How much does weather A game is addictive or not

0:27:31.080 --> 0:27:34.120
<v Speaker 3>factor into this, Dave, And as you know, the broader

0:27:34.200 --> 0:27:40.120
<v Speaker 3>question is whether games gaming platform should be talked about

0:27:40.160 --> 0:27:42.439
<v Speaker 3>in the same conversation as what we're seeing in social

0:27:42.520 --> 0:27:46.240
<v Speaker 3>media bands around the world and the conversation on social

0:27:46.320 --> 0:27:47.440
<v Speaker 3>media addiction.

0:27:48.920 --> 0:27:50.960
<v Speaker 12>I want to speak out for the gaming industry as

0:27:50.960 --> 0:27:54.960
<v Speaker 12>a whole relative to social networking and social media. There's

0:27:55.000 --> 0:28:00.239
<v Speaker 12>something really important about multiplayer gaming and experience. It's a

0:28:00.320 --> 0:28:06.080
<v Speaker 12>connection activity rather than a being alone activity. It's an

0:28:06.080 --> 0:28:12.480
<v Speaker 12>activity that typically involves creation and imagination rather than raw consumption.

0:28:13.160 --> 0:28:17.720
<v Speaker 12>So we see gaming very differently than social media and

0:28:17.760 --> 0:28:21.560
<v Speaker 12>social networking, and in many respects, gaming is the is

0:28:21.600 --> 0:28:23.639
<v Speaker 12>the future extension of what I used to do on

0:28:23.680 --> 0:28:25.800
<v Speaker 12>a rainy day, which is call my friends on the

0:28:25.840 --> 0:28:29.600
<v Speaker 12>phone and connect with them that way. So we're optimistic

0:28:29.680 --> 0:28:33.080
<v Speaker 12>going forward. Gaming is very much in a different category.

0:28:33.520 --> 0:28:37.199
<v Speaker 12>We build a platform so people can have fun and

0:28:37.400 --> 0:28:40.800
<v Speaker 12>connect more than what you're mentioning.

0:28:41.320 --> 0:28:45.920
<v Speaker 4>With a safer environment not only comes well, parents and

0:28:46.000 --> 0:28:49.040
<v Speaker 4>children more willing to use, probably advertisers even more willing

0:28:49.040 --> 0:28:51.560
<v Speaker 4>to come on. And that's an area that you've been developing,

0:28:51.600 --> 0:28:54.200
<v Speaker 4>and particularly a revenue share with ads that are going

0:28:54.240 --> 0:28:58.000
<v Speaker 4>to be based within developers' games. How is that being

0:28:58.760 --> 0:29:01.840
<v Speaker 4>taken on by the developer that you work with, and

0:29:01.880 --> 0:29:03.720
<v Speaker 4>how you think about the revenue share? What sort of

0:29:03.760 --> 0:29:06.480
<v Speaker 4>amount to me thinking, yeah.

0:29:06.320 --> 0:29:09.040
<v Speaker 12>Yeah, I want to highlight once again, we always put

0:29:09.160 --> 0:29:13.720
<v Speaker 12>building a healthy, safe and age appropriate environment first amongst

0:29:13.800 --> 0:29:16.720
<v Speaker 12>everything and once again respecting that community.

0:29:17.320 --> 0:29:18.360
<v Speaker 5>But as you.

0:29:18.360 --> 0:29:21.800
<v Speaker 12>Correctly mentioned, in immersive three D environments, if I go

0:29:21.960 --> 0:29:25.600
<v Speaker 12>to a NASCAR race, for example, I may see some

0:29:26.160 --> 0:29:29.440
<v Speaker 12>interesting products on the cars or on the billboards, and

0:29:29.480 --> 0:29:33.160
<v Speaker 12>those are typically things that are appropriate for people of

0:29:33.200 --> 0:29:36.840
<v Speaker 12>all ages. So we continue to build out that advertising

0:29:36.920 --> 0:29:41.160
<v Speaker 12>opportunity on roadblocks. In addition to those immersive types of ads,

0:29:41.360 --> 0:29:45.400
<v Speaker 12>more and more of our creators are actually buying ads

0:29:45.440 --> 0:29:49.160
<v Speaker 12>to help people recognize that they have a new creation.

0:29:49.280 --> 0:29:51.040
<v Speaker 5>So we're still early in.

0:29:51.040 --> 0:29:54.320
<v Speaker 12>The advertising opportunity, but we believe it's very large.

0:29:55.040 --> 0:29:58.280
<v Speaker 4>How large could the revenue split feed? Have you got

0:29:58.320 --> 0:30:00.680
<v Speaker 4>an idea of where that percentage WI ledge out on

0:30:00.760 --> 0:30:02.480
<v Speaker 4>particular developers.

0:30:02.520 --> 0:30:05.840
<v Speaker 12>Well, we do have kind of internal models and we're

0:30:06.000 --> 0:30:10.000
<v Speaker 12>very optimistic that. You know, for creators building games and

0:30:10.040 --> 0:30:15.800
<v Speaker 12>experiences on roadblocks, they primarily monetize right now with virtual currency,

0:30:15.840 --> 0:30:19.560
<v Speaker 12>with our Robucks system. There are millions and you know

0:30:20.080 --> 0:30:23.080
<v Speaker 12>creators on our platform, and a portion of them actually

0:30:23.080 --> 0:30:27.120
<v Speaker 12>build creations that monetize. And we've shared how this vibrant

0:30:27.720 --> 0:30:31.080
<v Speaker 12>community is really building a new place for people to

0:30:31.200 --> 0:30:36.480
<v Speaker 12>work and to build small studios and beyond advertising is

0:30:36.520 --> 0:30:39.120
<v Speaker 12>another compliment for how they may monetize.

0:30:40.040 --> 0:30:40.280
<v Speaker 8>Dave.

0:30:40.360 --> 0:30:43.000
<v Speaker 3>I'm looking at your company shares up almost five percent

0:30:43.080 --> 0:30:44.480
<v Speaker 3>in the session. I'm trying to work out what the

0:30:44.480 --> 0:30:48.680
<v Speaker 3>market's really responding to here and Friday Night, Roadblocks launched.

0:30:48.680 --> 0:30:51.720
<v Speaker 3>This new subscription plan goes live April thirtieth, I think,

0:30:51.920 --> 0:30:55.760
<v Speaker 3>but it basically replaces the premium tier. There seems to

0:30:55.800 --> 0:30:58.200
<v Speaker 3>be a lot of good vibes around that. What was

0:30:58.240 --> 0:31:00.760
<v Speaker 3>the rational and how do you see it playing out?

0:31:02.640 --> 0:31:05.840
<v Speaker 12>More and more we see two types of subscriptions on

0:31:05.880 --> 0:31:09.560
<v Speaker 12>our platform. A large number of parents, you know, the

0:31:09.600 --> 0:31:12.880
<v Speaker 12>future of what we see happening on Roadblocks. When I

0:31:13.080 --> 0:31:16.560
<v Speaker 12>was younger, I got an allowance to go buy comic

0:31:16.600 --> 0:31:20.880
<v Speaker 12>books at the local drug store. Today, a lot of

0:31:20.960 --> 0:31:25.320
<v Speaker 12>young people are learning about digital finance by getting a

0:31:25.440 --> 0:31:28.520
<v Speaker 12>Roebucks allowance from their parents. So we do have a

0:31:28.560 --> 0:31:33.880
<v Speaker 12>subscription for Roebucks so parents can give their kids recurring

0:31:33.960 --> 0:31:37.200
<v Speaker 12>roebucks and they can learn about digital finance. In addition,

0:31:37.720 --> 0:31:41.720
<v Speaker 12>we announced Roadblocks Plus, which is for those highly engaged

0:31:41.840 --> 0:31:46.040
<v Speaker 12>users that want a discount on the roebucks that they're spending,

0:31:46.200 --> 0:31:49.040
<v Speaker 12>want free digital servers, and a few other things like that.

0:31:49.400 --> 0:31:52.400
<v Speaker 12>It's a compliment to the allowance, but more and more.

0:31:52.480 --> 0:31:55.280
<v Speaker 12>Roadblocks is a place where young people are learning about

0:31:55.320 --> 0:31:56.320
<v Speaker 12>digital finance.

0:31:57.320 --> 0:32:00.280
<v Speaker 3>Dave a zookie of Roadblocks, important pieces, several piece of

0:32:00.360 --> 0:32:03.360
<v Speaker 3>news out of the company, Thank you very much. There's

0:32:03.360 --> 0:32:06.440
<v Speaker 3>some interesting market activity that's going on. Look at shares

0:32:06.480 --> 0:32:10.400
<v Speaker 3>of Dell and HP Inc. Both of them moved very

0:32:10.520 --> 0:32:14.360
<v Speaker 3>quickly to session highs after a report from semi Accurate,

0:32:15.000 --> 0:32:18.320
<v Speaker 3>a website which basically said that Nvidia has been in

0:32:18.440 --> 0:32:22.040
<v Speaker 3>negotiations for every year to buy a large company quote

0:32:22.160 --> 0:32:26.080
<v Speaker 3>that will reshape the PC landscape, without naming the specifics

0:32:26.080 --> 0:32:26.400
<v Speaker 3>of it.

0:32:27.240 --> 0:32:27.440
<v Speaker 2>You know.

0:32:27.480 --> 0:32:29.880
<v Speaker 3>We note in a BFW on the terminal that semi

0:32:29.880 --> 0:32:32.840
<v Speaker 3>Accurate has been reporting on this kind of ongoing story

0:32:32.880 --> 0:32:35.920
<v Speaker 3>since twenty twenty four. Late twenty four, but the stocks

0:32:35.960 --> 0:32:38.600
<v Speaker 3>both moved higher. Dell's up four and a half percent

0:32:38.600 --> 0:32:41.720
<v Speaker 3>as it stands, HPN cup two percent. Bloomberg News is

0:32:41.720 --> 0:32:44.000
<v Speaker 3>out to comment for all three of those companies and

0:32:44.080 --> 0:32:45.560
<v Speaker 3>yet to hear Backgary.

0:32:45.600 --> 0:32:48.400
<v Speaker 4>Keep an eye on it. Meanwhile, coming up that record

0:32:48.480 --> 0:32:51.880
<v Speaker 4>rating Artemis two crew back on Earth, NASA and its

0:32:51.880 --> 0:32:54.240
<v Speaker 4>partners turned their attention now. Of course, they're landing humans

0:32:54.240 --> 0:32:56.440
<v Speaker 4>on the Moon as soon as twenty twenty eight. We'll

0:32:56.480 --> 0:32:58.080
<v Speaker 4>discuss that next as bloom meb tech.

0:33:06.600 --> 0:33:10.040
<v Speaker 3>After blasting off from Earth the historic trip around the

0:33:10.040 --> 0:33:13.880
<v Speaker 3>Moon and back, the Artemis crew splashed down safely on

0:33:13.960 --> 0:33:17.840
<v Speaker 3>Friday evening in the Lockheed Martin built Oryan capsule. The

0:33:17.920 --> 0:33:22.160
<v Speaker 3>roughly thirteen minutes plunge back to Earth was expected to

0:33:22.200 --> 0:33:25.080
<v Speaker 3>be a nail bitter, not just because of the twenty

0:33:25.160 --> 0:33:27.920
<v Speaker 3>five thousand miles per hour speed o Ryan re entered

0:33:27.960 --> 0:33:31.480
<v Speaker 3>the atmosphere at but also because of concerns about the

0:33:31.480 --> 0:33:34.240
<v Speaker 3>heat shield meant to protect the crew from temperatures of

0:33:34.320 --> 0:33:37.000
<v Speaker 3>up to nearly five thousand degrees fahrenheit.

0:33:37.080 --> 0:33:39.000
<v Speaker 2>NASA administrator Jared.

0:33:38.720 --> 0:33:42.840
<v Speaker 3>Eisaman posting that the discolouration scene in pictures after Orion

0:33:42.960 --> 0:33:45.880
<v Speaker 3>was recovered was not parts of the heat shield that

0:33:45.920 --> 0:33:49.000
<v Speaker 3>have come loose or unexpected behavior in the materials as

0:33:49.080 --> 0:33:51.680
<v Speaker 3>it happened in Artemis one. NASA is now doing a

0:33:51.720 --> 0:33:54.480
<v Speaker 3>full data review of the systems along with his partners,

0:33:54.520 --> 0:33:59.000
<v Speaker 3>including Lockheed Martin, the company's head of human space exploration,

0:33:59.400 --> 0:34:02.760
<v Speaker 3>and the URON program manager. Kerk Shiman joins us now

0:34:02.760 --> 0:34:05.720
<v Speaker 3>here on Bloomberg Tech. Let's start with that point. I

0:34:05.720 --> 0:34:08.960
<v Speaker 3>think that the administrator was compelled to post on X

0:34:09.040 --> 0:34:14.200
<v Speaker 3>because people looked at at integrity of the Orion spacecraft

0:34:14.239 --> 0:34:16.600
<v Speaker 3>as it was hoisted out of the water and onto

0:34:16.640 --> 0:34:19.640
<v Speaker 3>the naval vessel. But what does the early data show

0:34:19.680 --> 0:34:23.719
<v Speaker 3>you about how the heat shield performed and basically end

0:34:23.719 --> 0:34:25.600
<v Speaker 3>to end mission success.

0:34:27.040 --> 0:34:31.160
<v Speaker 13>Absolutely, the vehicle performed exceptionally well, we're very, very pleased

0:34:31.200 --> 0:34:33.719
<v Speaker 13>with how it performed. The heat shield did exactly what

0:34:33.760 --> 0:34:36.319
<v Speaker 13>it was supposed to do. It protected the crew and

0:34:36.360 --> 0:34:39.720
<v Speaker 13>the vehicle from those very high temperatures that you mentioned.

0:34:41.280 --> 0:34:43.359
<v Speaker 8>I actually got to see some pictures that.

0:34:43.280 --> 0:34:47.040
<v Speaker 13>The divers, the Navy divers took from underwater, and they

0:34:47.080 --> 0:34:50.080
<v Speaker 13>looked all exceptionally Well. You know, when you come in

0:34:50.800 --> 0:34:53.120
<v Speaker 13>and you have that high heating and then the atmosphere,

0:34:53.719 --> 0:34:56.160
<v Speaker 13>the wind and so on, you expect to have some

0:34:56.680 --> 0:35:01.520
<v Speaker 13>discolouration from that experience. But all in all, the vehicle

0:35:01.560 --> 0:35:04.080
<v Speaker 13>performed the heat shield and the tiles on the top

0:35:04.160 --> 0:35:06.000
<v Speaker 13>of the vehicle performed exceptionally.

0:35:06.040 --> 0:35:07.440
<v Speaker 8>Well, we're very, very pleased.

0:35:07.440 --> 0:35:10.439
<v Speaker 13>We're looking forward to getting more detailed photographs right as

0:35:10.440 --> 0:35:12.400
<v Speaker 13>we have the vehicle back in San Diego and on

0:35:12.440 --> 0:35:12.920
<v Speaker 13>to Euston.

0:35:13.760 --> 0:35:16.680
<v Speaker 3>Hey, Kirk, that's just good old fashioned rocket science for

0:35:16.680 --> 0:35:18.799
<v Speaker 3>a flat bottom capsule, right, how do you slow it

0:35:18.840 --> 0:35:20.400
<v Speaker 3>down on the re entry interface?

0:35:20.880 --> 0:35:22.359
<v Speaker 2>Bang it into a wall of air?

0:35:22.640 --> 0:35:24.480
<v Speaker 3>I mean, on this program we talked about how to

0:35:24.560 --> 0:35:26.759
<v Speaker 3>fix Atomis one to Automus two.

0:35:26.840 --> 0:35:28.000
<v Speaker 2>Is actually the angle of.

0:35:28.000 --> 0:35:31.120
<v Speaker 3>Re entry rather than some kind of fundamental change to

0:35:31.200 --> 0:35:32.440
<v Speaker 3>the materials of design.

0:35:32.880 --> 0:35:34.840
<v Speaker 2>But with Automis three.

0:35:34.400 --> 0:35:36.560
<v Speaker 3>There will be some tweaks, right, what can you tell

0:35:36.600 --> 0:35:37.239
<v Speaker 3>us about that?

0:35:38.719 --> 0:35:38.959
<v Speaker 5>Sure?

0:35:39.080 --> 0:35:42.879
<v Speaker 13>On Arms three we use the same shape of av

0:35:42.960 --> 0:35:46.200
<v Speaker 13>coat tiles, but the formulation of av code is slightly different,

0:35:46.600 --> 0:35:50.960
<v Speaker 13>and so we're looking forward to different performance, actually better performance,

0:35:51.000 --> 0:35:54.400
<v Speaker 13>and we can basically skip out of the atmosphere shortly

0:35:54.760 --> 0:35:58.200
<v Speaker 13>and extend our downrange, which is really important for our

0:35:58.200 --> 0:36:03.160
<v Speaker 13>operational constraints. So looking forward to a more operationally friendly

0:36:03.600 --> 0:36:06.120
<v Speaker 13>heats shield on Artists three and subsequent vehicles.

0:36:06.400 --> 0:36:08.319
<v Speaker 4>I mean, Kirk, there must have been lots you're looking

0:36:08.320 --> 0:36:10.360
<v Speaker 4>forward to and getting your hands on it back in Houston,

0:36:10.400 --> 0:36:12.560
<v Speaker 4>and I'm interested in the early day and more broadly

0:36:12.600 --> 0:36:15.200
<v Speaker 4>the crude feedback. What is the most important things that

0:36:15.239 --> 0:36:16.719
<v Speaker 4>you've learned from integrity?

0:36:18.920 --> 0:36:20.280
<v Speaker 8>Well, of course everyone.

0:36:20.320 --> 0:36:22.720
<v Speaker 13>You can imagine how we engineers are interested in every

0:36:22.760 --> 0:36:25.000
<v Speaker 13>little detail that we learned along the way.

0:36:25.360 --> 0:36:27.200
<v Speaker 8>I think the beautiful thing about.

0:36:26.920 --> 0:36:29.000
<v Speaker 13>Having the crew back and talking about it is kind

0:36:29.000 --> 0:36:31.480
<v Speaker 13>of what we've learned about our planet and where we

0:36:31.520 --> 0:36:35.160
<v Speaker 13>sit in the universe. To me, it was so exciting

0:36:35.200 --> 0:36:38.319
<v Speaker 13>to hear them talk and basically see the Moon and

0:36:38.400 --> 0:36:40.640
<v Speaker 13>ultimately our Earth through their eyes.

0:36:40.680 --> 0:36:41.920
<v Speaker 8>It was just fantastic.

0:36:42.080 --> 0:36:44.719
<v Speaker 13>Hopefully you've had a chance to hear that, and if not,

0:36:44.800 --> 0:36:46.560
<v Speaker 13>you will over the coming days.

0:36:47.400 --> 0:36:50.680
<v Speaker 4>It's a joy to see so many almost get philosophical

0:36:50.880 --> 0:36:54.440
<v Speaker 4>in these moments when it comes to planetary exploration and

0:36:54.480 --> 0:36:56.720
<v Speaker 4>the moon and just how we sit within this universe,

0:36:56.760 --> 0:36:59.200
<v Speaker 4>and you too. But when you are thinking about how

0:36:59.239 --> 0:37:01.680
<v Speaker 4>the engineers get nitty gritty and some of the key

0:37:01.719 --> 0:37:05.280
<v Speaker 4>things that you're looking to confirm before Ryan flies again,

0:37:06.040 --> 0:37:08.920
<v Speaker 4>what do you think is the most detail oriented focus

0:37:08.960 --> 0:37:09.480
<v Speaker 4>you're going to have.

0:37:11.560 --> 0:37:15.120
<v Speaker 13>Sure, I think everything that didn't perform exactly as expected

0:37:15.160 --> 0:37:18.400
<v Speaker 13>on this flight, or where we'll really dig in. Lockheed

0:37:18.440 --> 0:37:21.920
<v Speaker 13>and NASA spend all their time or ninety percent of

0:37:21.960 --> 0:37:24.160
<v Speaker 13>their time looking at the things that didn't go right

0:37:24.600 --> 0:37:26.120
<v Speaker 13>as opposed to all the things that did.

0:37:26.640 --> 0:37:29.279
<v Speaker 4>They was one thing that you're writing about one other

0:37:29.360 --> 0:37:32.799
<v Speaker 4>things that perhaps didn't form exactly as you anticipated, even

0:37:32.800 --> 0:37:33.480
<v Speaker 4>if not badly.

0:37:34.880 --> 0:37:38.000
<v Speaker 13>Sure, we had a valve that didn't work right relative

0:37:38.080 --> 0:37:41.560
<v Speaker 13>to the water, the drinkable water, the potable water system.

0:37:41.880 --> 0:37:46.200
<v Speaker 13>We had a system that does introduces helium into the

0:37:46.280 --> 0:37:49.680
<v Speaker 13>propellant tanks as we deplete propellant that didn't work exactly

0:37:49.719 --> 0:37:50.320
<v Speaker 13>as expected.

0:37:50.400 --> 0:37:53.120
<v Speaker 8>So we'll definitely dive into those issues.

0:37:53.719 --> 0:37:57.839
<v Speaker 13>And then a few little features with telemetry that we'll

0:37:57.840 --> 0:38:00.960
<v Speaker 13>have to fully understand. We think that's probably aware issue,

0:38:00.960 --> 0:38:03.440
<v Speaker 13>but we'll understand it and correct it for future flights.

0:38:04.360 --> 0:38:08.680
<v Speaker 3>Christina Kirk mission specialist turned astro plumber.

0:38:08.840 --> 0:38:10.799
<v Speaker 2>I don't know how you would describe that.

0:38:11.200 --> 0:38:13.440
<v Speaker 3>You know, I appreciate the answer of the things that

0:38:13.480 --> 0:38:16.000
<v Speaker 3>didn't quite go right, and you know there's a data process,

0:38:16.400 --> 0:38:20.600
<v Speaker 3>a review process, right, but what exceeded expectations. You know,

0:38:20.680 --> 0:38:24.279
<v Speaker 3>everyone makes a lot of the idea that integrity or

0:38:24.400 --> 0:38:27.920
<v Speaker 3>ryan is a spacecraft is the size of a small bus,

0:38:27.920 --> 0:38:29.320
<v Speaker 3>a Campa van three.

0:38:29.239 --> 0:38:31.000
<v Speaker 2>Hundred and thirty cubic feet, right, you know.

0:38:31.120 --> 0:38:34.920
<v Speaker 3>But it got them two hundred and fifty thousand miles

0:38:34.960 --> 0:38:37.560
<v Speaker 3>plus from Earth, around the Moon and back, and by

0:38:37.640 --> 0:38:39.160
<v Speaker 3>all accounts, they had a great time.

0:38:39.239 --> 0:38:41.200
<v Speaker 2>What exceeded your expectations, Kirk?

0:38:42.480 --> 0:38:46.000
<v Speaker 13>Sure, Ryan has twelve million, five hundred thousand parts, so

0:38:46.160 --> 0:38:48.560
<v Speaker 13>most of those parts did exactly what they were supposed

0:38:48.560 --> 0:38:53.280
<v Speaker 13>to do. I think the big surprise, or not a surprise,

0:38:53.360 --> 0:38:54.480
<v Speaker 13>but exceedance.

0:38:54.040 --> 0:38:56.840
<v Speaker 8>Of expectation, was the systems that keep.

0:38:56.719 --> 0:39:00.000
<v Speaker 13>The crew alive and happy, that the scrub carbon dioxide

0:39:00.080 --> 0:39:03.360
<v Speaker 13>out of the atmosphere, that introduced auction in the atmosphere.

0:39:04.160 --> 0:39:08.240
<v Speaker 13>That basically all those systems that keep the crew alive

0:39:08.320 --> 0:39:10.719
<v Speaker 13>and healthy and then interfaced with the crew to the

0:39:10.840 --> 0:39:12.640
<v Speaker 13>vehicle performed flawlessly.

0:39:12.680 --> 0:39:15.279
<v Speaker 8>It was just exceptional. And that was all new for

0:39:15.320 --> 0:39:15.719
<v Speaker 8>this flight.

0:39:15.760 --> 0:39:18.160
<v Speaker 13>So we were expecting to learn things, but by and

0:39:18.239 --> 0:39:20.200
<v Speaker 13>large those exceeded our expectations.

0:39:21.239 --> 0:39:21.439
<v Speaker 2>Cok.

0:39:21.520 --> 0:39:24.600
<v Speaker 3>This was a great feat for NASA and for America.

0:39:24.640 --> 0:39:28.680
<v Speaker 3>But we should be kind to your European colleagues, the

0:39:28.719 --> 0:39:32.760
<v Speaker 3>European Space Agency and the companies involved in the service.

0:39:32.840 --> 0:39:38.719
<v Speaker 3>Module absolutely critical for life support and other critical systems.

0:39:39.120 --> 0:39:42.880
<v Speaker 3>How did the service module perform, To the best of

0:39:42.920 --> 0:39:44.320
<v Speaker 3>Lockheed's knowledge.

0:39:45.640 --> 0:39:47.080
<v Speaker 8>It performed exceptionally well.

0:39:47.320 --> 0:39:49.920
<v Speaker 13>We have a great relationship with Airbus, which is the

0:39:49.920 --> 0:39:52.680
<v Speaker 13>industry partner in Europe that built the service module, and

0:39:52.760 --> 0:39:56.200
<v Speaker 13>the European Space Agency. They were there in the Michigan

0:39:56.200 --> 0:39:59.480
<v Speaker 13>control room sitting right next to us during the entire mission,

0:39:59.480 --> 0:40:03.759
<v Speaker 13>including splash down, and again they were extremely thrilled by

0:40:03.760 --> 0:40:04.960
<v Speaker 13>the performance of service.

0:40:04.719 --> 0:40:06.160
<v Speaker 8>Modules, as were we.

0:40:06.480 --> 0:40:08.320
<v Speaker 13>Of course, there were one or two things that didn't

0:40:08.320 --> 0:40:11.000
<v Speaker 13>work exactly as planned, and we'll get to the bottom

0:40:11.000 --> 0:40:15.120
<v Speaker 13>of those with Buy and Large. It performed better than

0:40:15.120 --> 0:40:17.839
<v Speaker 13>we better than we expected it to form.

0:40:18.080 --> 0:40:19.799
<v Speaker 8>It was exceptional well.

0:40:20.440 --> 0:40:22.720
<v Speaker 4>I think the rest of the world was highly pleased.

0:40:22.760 --> 0:40:24.920
<v Speaker 4>It went so well as well. KERK Shaman, thanks for

0:40:24.960 --> 0:40:28.000
<v Speaker 4>giving us your time. VP of Human Space Exploration and

0:40:28.040 --> 0:40:31.560
<v Speaker 4>oryan program manager for Lockie Martin. There now coming up.

0:40:31.920 --> 0:40:32.879
<v Speaker 2>Apple moves to.

0:40:32.800 --> 0:40:35.839
<v Speaker 4>Decentralize its AI leadership as it is is it's next

0:40:35.840 --> 0:40:38.960
<v Speaker 4>hardware hit on that next this is Blue Medtech.

0:40:48.840 --> 0:40:51.800
<v Speaker 3>Apple's hitting a major inflection point in its AI journey.

0:40:51.800 --> 0:40:55.279
<v Speaker 3>Apple's AI head is officially departing this week, while a

0:40:55.320 --> 0:40:59.239
<v Speaker 3>new product roadmap is coming into focus. It's all detailed

0:40:59.560 --> 0:41:02.439
<v Speaker 3>in the late this power on by Bloomberg Smart gunman

0:41:02.480 --> 0:41:06.719
<v Speaker 3>who joins us now display free smart glasses.

0:41:07.920 --> 0:41:10.480
<v Speaker 2>What do we know? Give us a little bit of

0:41:10.520 --> 0:41:12.719
<v Speaker 2>the history and really.

0:41:15.640 --> 0:41:19.600
<v Speaker 14>Yes, really smart glasses. That is Apple's next big thing.

0:41:20.480 --> 0:41:24.000
<v Speaker 14>They've grown in popularity right. Tons of people are wearing them,

0:41:24.000 --> 0:41:26.000
<v Speaker 14>not only in Silicon Valley but in all parts of

0:41:26.040 --> 0:41:28.919
<v Speaker 14>the world. Meta has done a great job with their

0:41:28.960 --> 0:41:31.960
<v Speaker 14>smart glasses. Here, I'll put them on for you. These

0:41:32.040 --> 0:41:35.000
<v Speaker 14>are the Meta ray Ban display glasses. So these have

0:41:35.040 --> 0:41:38.359
<v Speaker 14>a little heads up display in them. Apples won't, like

0:41:38.400 --> 0:41:41.640
<v Speaker 14>you said, display free. The idea is that this is

0:41:41.680 --> 0:41:44.360
<v Speaker 14>the eyes and ears for AI and the cloud for

0:41:44.480 --> 0:41:48.040
<v Speaker 14>Siri and Apple Intelligence. These will rely heavily on the

0:41:48.080 --> 0:41:51.879
<v Speaker 14>new SERI coming in iOS twenty seven later this year.

0:41:51.960 --> 0:41:55.759
<v Speaker 14>These will probably go on sale next year. Apple's going

0:41:55.800 --> 0:41:57.920
<v Speaker 14>to be differentiating here a little bit because they're not

0:41:57.960 --> 0:42:00.200
<v Speaker 14>going to be working with an outside fashion part partner.

0:42:00.280 --> 0:42:02.160
<v Speaker 14>As far as we know, They're going to bring in

0:42:02.200 --> 0:42:04.919
<v Speaker 14>their own designs in house. For the most part, they're

0:42:04.920 --> 0:42:09.400
<v Speaker 14>working on four major designs. I've been told two rectangles

0:42:09.440 --> 0:42:13.080
<v Speaker 14>and two circular stocked ovals, one on each size, So

0:42:13.120 --> 0:42:16.040
<v Speaker 14>they're trying to make something for everyone, similar to when

0:42:16.080 --> 0:42:18.480
<v Speaker 14>they launched the Apple Watch back in twenty fifteen, how

0:42:18.520 --> 0:42:21.440
<v Speaker 14>they had several different colors bands and also of course

0:42:21.520 --> 0:42:26.239
<v Speaker 14>two sizes initially for men and women, but now they

0:42:26.280 --> 0:42:28.680
<v Speaker 14>have multiple sizes as well a third size with the

0:42:28.680 --> 0:42:32.319
<v Speaker 14>Apple Watch Ultra. So definitely taking a look at what

0:42:32.400 --> 0:42:35.600
<v Speaker 14>looks best for different people. This is going to be

0:42:35.640 --> 0:42:38.000
<v Speaker 14>pretty exciting, I think, and I think Apple has the

0:42:38.120 --> 0:42:41.520
<v Speaker 14>ingredients to be a serious winner in the smart glasses arena.

0:42:41.600 --> 0:42:43.359
<v Speaker 4>Maybe we'll all look a bit more like Tim Cook

0:42:43.400 --> 0:42:45.680
<v Speaker 4>as you say, one of the slimmer rectangular designs is

0:42:45.760 --> 0:42:46.960
<v Speaker 4>sort of based on what he wears.

0:42:47.040 --> 0:42:47.279
<v Speaker 10>Mark.

0:42:47.360 --> 0:42:51.000
<v Speaker 4>But the age old idea is that Apple comes later

0:42:51.480 --> 0:42:53.600
<v Speaker 4>but wins. How much do they need to win? How

0:42:53.680 --> 0:42:55.080
<v Speaker 4>much does that need to be integrated with the new

0:42:55.160 --> 0:42:56.360
<v Speaker 4>leadership in AI quickly?

0:42:57.480 --> 0:43:01.000
<v Speaker 14>Yeah, well, smart glasses story for Apple is going to

0:43:01.000 --> 0:43:03.280
<v Speaker 14>be strong. I think the big leg up Apple has

0:43:03.760 --> 0:43:07.960
<v Speaker 14>is this thing. The metaglasses don't pair as nicely as

0:43:08.040 --> 0:43:11.320
<v Speaker 14>Meta would like with the iPhone. Any third parties for

0:43:11.360 --> 0:43:13.759
<v Speaker 14>our classes don't pair as nicely with the iPhone as

0:43:13.800 --> 0:43:16.120
<v Speaker 14>Apple in house Glass as well, and so given them

0:43:16.120 --> 0:43:19.880
<v Speaker 14>a number of iPhones in use, the attachment rate I

0:43:19.920 --> 0:43:23.120
<v Speaker 14>think will be material for the company. So I think

0:43:23.160 --> 0:43:25.040
<v Speaker 14>they're very much looking forward to getting these out the

0:43:25.040 --> 0:43:25.680
<v Speaker 14>door next year.

0:43:26.520 --> 0:43:29.560
<v Speaker 4>Mark German as always with the power on over the weekend,

0:43:29.560 --> 0:43:32.279
<v Speaker 4>which remains one of the most read stories we can

0:43:32.400 --> 0:43:33.719
<v Speaker 4>week out. We appreciate it.

0:43:34.160 --> 0:43:34.960
<v Speaker 2>Now, that does it.

0:43:35.000 --> 0:43:38.160
<v Speaker 4>For the edition of Bloomberg Tech Ed, we did a

0:43:38.160 --> 0:43:40.760
<v Speaker 4>lot of AI, a lot of space, a lot to digest.

0:43:41.000 --> 0:43:44.960
<v Speaker 3>Yeah, maybe not as many breaking US headlines technology stories,

0:43:45.000 --> 0:43:47.000
<v Speaker 3>but a lot of deeper conversation about things have been

0:43:47.000 --> 0:43:49.920
<v Speaker 3>going a while now. Check out the podcast to recap

0:43:50.000 --> 0:43:51.600
<v Speaker 3>all of that. You can find it on the terminal

0:43:51.880 --> 0:43:56.239
<v Speaker 3>as well as online on Apple, Spotify, and iHeart This

0:43:56.280 --> 0:43:57.000
<v Speaker 3>is boombag Tech