Transcripts For BLOOMBERG Bloomberg 20240703 : comparemela.c

State of ai and the regulation with the cochair of the government ai review. All of that and more coming up. We will check on the markets, macro dictated. Flipping between gains and losses. Seems to be being moved by this market, the bond market, yields backup for basis points. Look for the decadelong highs, 4. 5 seven on the 10 year at the moment, about 5 on a twoyear, worried about the direction of travel for the Federal Reserve and a potential Government Shutdown in the red states. Interesting that we see the dollar pushing higher. We expect the fed to have to push back on where some of the inflation pressures have been. The dollar index for the sixth straight day, the longest winning streak. In the face of a stronger dollar, bitcoin higher,. 5 . About of buying in your trading. To get back to the micro today. Ed there are themes, weighing out in the new cycle markets as well. Theyre shuttering the unit of their business that does augmented reality, 170 jobs going with the jobs being cut as well. The question about the longterm commitment. Later we will talk to Bloomberg Intelligence analysts about that. Peloton down. 9 , tom, the last remaining founder of peloton leaving the company. He was the last domino to fall and he is left but what were maine as an advisor. The stock for most of the trading is still down. Meda connect is the annual develop its conference. We know the next generation will be a topic of conversation. We are treading water, the parent of facebook up 1 . 1 . How much focus will be on the latest generation of hardware, these are questions we have to ask. Caroline and questions we have been asking day in and day out. Last week i got to sit down with the head of Global Affairs to discuss how a company is utilizing generative ai. We are announcing on the 27th, new applications of the airline, you will be will commute hit with his mrs. , and the messages are really extraordinary. It will affect all of us are consumed. Caroline a Senior Analyst is with us, the head of the allimportant meda connect. How much do you want to be hearing about generative ai, checkbox and the desire of the Younger Generation to remain committed to instagram, meta and other offerings . Ai is front and center for every company. Google amazon. The majority of the topics weve been having with our investors, that is what investors want to hear. They dont love the hardware side of those so they would like to hear more about this than in the quest and the hardware side, which most investors are skeptical about a more expensive endeavor, highermargin building, we want to hear more on that. Merck zuckerberg did a story yesterday as instagram about jarvis. In 2016 he showed this ai bought at his house that could turn on the lights and do things like make us toast at home. I was in 2016 and he reposted that. We believe this concept of jarvis for the home comes to the mass in ai. Using microsoft and google, also there is an opportunity with Whatsapp Messenger and the global pop Global Platforms that can help us find the right goods, hope surface ideas, salon photos and other ideas to their friends. This is going to be the most exciting part of it. The sideshow will be meda and the price point. It is below that of the proactive 500. Differentiation of what is going to happen in next generation. Ed meta is building large when which models, have emphasis on opensource when developing technology and it has hinted at how that translates to generative ai tools and existing properties. We are focusing on ai agents. You see a clear path to them ever making any money from the things they are working on on the r d side . They have been very clear they are not making money now or dont believe this will be a big Revenue Initiative the short term. Longterm we do believe they can make money and they are a consumer focused company, not as much enterprise. This is going to take some time to figure this out. But we think given the quality of the feedback from the channel about how they are using this, the open Source Community living what theyre doing, there is no doubt there is an opportunity to monetize. This is in the numbers and an evaluation today. 2, 3, 4 years ago we could have this discussion around is this going to be material revenue where they could potentially license this model to companies to use and they would have a royalty for. The answer is yes. What the details look like, theyre trying to iron those out. Those are not in our model but we believe they can monetize it going forward. Ed buckley, it sounds like you are not that excited about augmented and virtual reality. Is that fair . That is fair. We are not. Ed it is either eight metaverse story or it is in ai story. Do you see a world in which meda can convince investors that we can have both echo i think we can have both, but the less they have talked about the metaverse, the higher the stock has gone. From an investor perspective, if they keep talking about the Software World and what is going on with the social Network Inside is great. This is an advertising driven story. The majority is driven by advertising. The jury is out whether the metaverse will be exciting were not. People are saying it is not going to be as exciting. And ai, there are realworld productivity measures we can see and how it is impacting our lives. Putting the headset on, being claustrophobic and playing a game with my kids for 10 minutes is not going to change my life. Right now, we are probably the biggest bear on the metaverse. We are very bullish about what they can do with the other side of their franchise. We are very clear about what we like and dont like. Caroline many executives are trying to see what analysts and investors like yourself like. A guest earlier in the week was talking but how generative ai is becoming such a focus. On the flipside is the regulatory environment. Amazon, meta, all of them have heard from investors. What are you making from this landscape . How do you expect this to unfold for amazon for example . The government has been trying to tackle big tech for a long time and we have said that the government oversight is the right thing to help protect all of us as consumers. But being big is not founded. Being bad is bad. As long as they find a middle ground, we have said this repeatedly. Anytime a regulatory scare comes in, you the stocks. Look at meta, google, amazon over the course of the last five years. Any regulatory scare, these need to be bought. Clearly there has been multiple attempts for the government to take down tech. It has not happened. Investors make money. I am all for regulation and doing the right thing to protect all of us. But what has happened is they have overstepped their boundaries and on after things that they dont necessarily have good food and putting or are educated on and that has caused problems. These are economies that have an end goal and i think they can meet in the middle. We have said this repeatedly. Like any regulatory scare on the internet, it has not done anything to be stocks. Pulp the chart at google the last five years and you can see it is amazing into the right chart. Respect it, believe in it, dont believe they are going to have a massive consequence. Ed when you outline the 10 minutes with the headset playing with your kids, there were parents in the San Francisco studio team that that tickled them. Probably share that view. Brent hill, thank you. Sticking with devices, amazon has lured away long Time Microsoft executive to head the devices and services business. After the devices chief announced his plans to retire, he was most recently the chief product officer at microsoft, overseeing windows and the hardware teams. Dave to head up lou origin. Caroline lots of revolving doors. Coming up, more on the lawsuit against amazon and what it means for big tech and antitrust. We will be joined by policy director and former ftc attorney, charlotte. And we will hear from the ftc chair on the complaint. She sat down with bloomberg yesterday. These are tactics, ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the skill and momentum needed to effectively compete online. Having achieved and protected its monopoly power, the details of how amazon is now exploiting that monopoly in ways that harm customers. Ed ftc chair lena con is seeking to end what she calls amazons illegal conduct, but did not go as far as to call for a breakup of amazon. We sat down with her at our Bloomberg Office in washington, d. C. This is the conversation. This is a case about unlawful tactics amazon has used to maintain anomalies. We note in the complaint, both a set of antidiscounting tactics that amazon uses to punish any seller or retailer that dares to discount and ultimately these sets of tactics deter sellers and retailers from lowering prices and closes off an entire dimension of price competition. The other side of tactics we note is a course of scheme amazon uses to effectively require sellers use the moment service. This ends up stunting the development of independent fulfillment providers and also deprives actual and potential rivals to scale. That is the core theme. These are a set of tactics but ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the scale and momentum needed to effectively compete online. Having achieved and protected its monopoly power, our complaint details how they are exploiting that power in ways that harm customers, both the sellers, the American Families that use amazon to do their shopping, both those shoppers and they sellers. The tens of thousands of sellers that use amazon to access those shoppers. It is done that through actively raising prices. Amazon takes close to one out of every two dollars from sellers that use its platform. It is also degraded its service adding a set of pay to play ads that make it more difficult for consumers to find what theyre looking for and steers them to higher price products. I encourage everybody to read the complaint and it details all of this conduct in great detail. We look looking forward to moving forward with it. One thing in the complaint is this phrase structural relief. You are seeking structural relief in this case, which implies a breakup. What would that look like . At this stage the plaintiffs focus on the issue of liability. We lay out a scheme that we believe violates the u. S. Antitrust laws. What we note in the complaint is that these different aspects of amazons scheme have an aggregated effect. The harm is accumulating, there are feedback loops and the net exclusionary effect of amazons conduct is significant. Ultimately we will want to make sure that any remedy is halting the illegal conduct, preventing a recurrence and ensuring that amazon is not able to profit and benefit from its illegal behavior. Right now we are focused on the question of liability. But women get to the issue of remedy, those will be the principles we are focused on. Caroline the ftc chair there. Amazon has responded to the lawsuit, with the Global Council of the company writing that if the ftc were to be successful, the result would be anticompetitive and anticonsumer. Lets get into this with charlotte, director of policy Public Knowledge and you previously worked in the Anticompetitive Practices Division of the ftc, investigating, litigating and if you were there now, how much confidence would you have that this would be a routable action . Charlotte there are reasons the antitrust people at the ftc try not to answer these. It is hard to say at this early stage. But they feel confident. I watched the interview yesterday. It is so important to highlight this problem for people. It seems clear, even though amazon has built their reputation on having the best prices, but that did not come from being an efficient competitor. It came from pushing those thirdparty sellers to raise prices everywhere else. That is not fair competition and if that is what is going on, it needs to stop. Caroline what is interesting is investor and analyst reaction to all this. One particular analyst saying this is a benign scenario for amazon and they were surprised the narrowness of the overall case, saying there is not sort of a reference to disallowing vertical integration. Do you think the outcome should be some sort of breakup or has it got to be Something Else . Charlotte i think of stopping the conduct is not going to be sufficient. This has been going on for a long time and replacing the competition that has been lost is really difficult. Step one is going to be to stop the conduct. But more will be needed. And i heard the chair yesterday to marrying that demurring that this would be far the future, the remedy stages later and separate. But it may be that separating off the fulfilled by amazon part of the business is the only way to address the lost competition, in which case the court would have to take that seriously. Ed some news in the last hour, the ftc has issued an order saying it will continue its internal case against activision and microsofts deal, but when it closes they can after the fact try to unwind it. This is what activision had to say in response. We are focused on working with microsoft toward closing. How the ftc uses limited taxpayer dollars is its decision. Given your cv, what is your response . Charlotte they are drawing on a point that the ftc has limited resources. There are so many important cases that we want them to bring with limited resources. But this case against microsoft and activision is an important case. They think that that has an opportunity to help consumers as i believe it would. It might be an important priority to spend those limited resources. But they are right, we need to increase funding for these agencies so that they can take on all of these important cases. Ed is she picking too many fights . Charlotte no. We need to pick these fights. And she spoke about the deterrence strategy, which can make this more efficient use of resources. If businesses out there can see this is not going to be an opportunity for you to try something risky because there is a fierce enforcer here, that can be a way of saving resources. That is part of the strategy and back and work overtime. Ed charlotte slaiman, thank you. This is bloomberg technology. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Caroline time for work shifting. We look at the changing landscape in the labor market, the big breakthrough overnight for hollywood. The Writers Guild of america approved a new contract with the studios, ending the strike after months of intense negotiations. One of the biggest wins in the deal is some assurance that Artificial Intelligence wont replace the jobs. Here with more details, and before we move to what is next to occur, ai, however they how have they won any production . The got what they wanted. The studios a greater they are not going to feed a bunch of scripts into the ai machine and come back and credit a movie to nai. Humans are still going to get the credit and that is what was really important. Studios didnt retain the right to experiment a little with ai. It remains to be seen a little how this is going to play out. Over the time being the writers are declaring victory. Caroline and to actors, they particularly were worried about ai replacing them. Is this an issue of . Yeah. Had somewhere concerns and now there is a template for these protections. I think there is optimism to believe that the writers having made this pact, now the actors will make some Real Progress quickly. Ed some of the numbers are incredible. The lost of the economy based on the strike. The whole point is the cost of content is getting higher. Do studios feel good about this outcome . Their reaction has been notably more muted than the raiders. The writers have been exuberant, declaring victory. The studios gave up a lot, or than they thought they would have to fight months ago in terms of compensation, minimum staffing on shows and in terms of the ai protections. Ed the other thing you are writing about is locklin murdoch. What is next . He made the announcement he is stepping back as chairman of the companies, talking to all of the murdoch people about what this means. Very unclear. What does this mean . A lot of unanswered questions. Clearly it was framed as another vote of confidence by rupert in his chosen successor, locklin, his eldest son. The same time, issues of what is going to happen down the road remain fairly unresolved. They tried to recombine fox and News Corporation earlier this year. Investors balked at that idea. So what comes next, they have been pretty quiet on the m a front for the past couple of years since acquiring tubi. There so basically a minnow in giants. Caroline this is when berg bloomberg world of technology. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. se fue la luz its happening. Pero todavia tenemos wifi para hacer las tareas. ¿y eso es algo bueno . Wifi y estudiar. Buenisimo. Wifi y pedir una pizza online seria buenisimo. Presentamos storm ready wifi. Solo de xfinity. Ahora puedes mantener una conexion confiable durante apagones, con datos celulares ilimitados y bateria de respaldo de hasta 4 horas para mantenerte conectado. Obtenlo solo con xfinity. El hogar del 10g network. Enterate mas hoy. Caroline welcome back to bloomberg technology, im Caroline Hyde in new york. Emily and im ed and i megan ludlow in new york i am ed ludlow in San Francisco. A lot of focus on economic data, with the Federal Reserve<\/a> and a potential Government Shutdown<\/a> in the red states. Interesting that we see the dollar pushing higher. We expect the fed to have to push back on where some of the inflation pressures have been. The dollar index for the sixth straight day, the longest winning streak. In the face of a stronger dollar, bitcoin higher,. 5 . About of buying in your trading. To get back to the micro today. Ed there are themes, weighing out in the new cycle markets as well. Theyre shuttering the unit of their business that does augmented reality, 170 jobs going with the jobs being cut as well. The question about the longterm commitment. Later we will talk to Bloomberg Intelligence<\/a> analysts about that. Peloton down. 9 , tom, the last remaining founder of peloton leaving the company. He was the last domino to fall and he is left but what were maine as an advisor. The stock for most of the trading is still down. Meda connect is the annual develop its conference. We know the next generation will be a topic of conversation. We are treading water, the parent of facebook up 1 . 1 . How much focus will be on the latest generation of hardware, these are questions we have to ask. Caroline and questions we have been asking day in and day out. Last week i got to sit down with the head of Global Affairs<\/a> to discuss how a company is utilizing generative ai. We are announcing on the 27th, new applications of the airline, you will be will commute hit with his mrs. , and the messages are really extraordinary. It will affect all of us are consumed. Caroline a Senior Analyst<\/a> is with us, the head of the allimportant meda connect. How much do you want to be hearing about generative ai, checkbox and the desire of the Younger Generation<\/a> to remain committed to instagram, meta and other offerings . Ai is front and center for every company. Google amazon. The majority of the topics weve been having with our investors, that is what investors want to hear. They dont love the hardware side of those so they would like to hear more about this than in the quest and the hardware side, which most investors are skeptical about a more expensive endeavor, highermargin building, we want to hear more on that. Merck zuckerberg did a story yesterday as instagram about jarvis. In 2016 he showed this ai bought at his house that could turn on the lights and do things like make us toast at home. I was in 2016 and he reposted that. We believe this concept of jarvis for the home comes to the mass in ai. Using microsoft and google, also there is an opportunity with Whatsapp Messenger<\/a> and the global pop Global Platforms<\/a> that can help us find the right goods, hope surface ideas, salon photos and other ideas to their friends. This is going to be the most exciting part of it. The sideshow will be meda and the price point. It is below that of the proactive 500. Differentiation of what is going to happen in next generation. Ed meta is building large when which models, have emphasis on opensource when developing technology and it has hinted at how that translates to generative ai tools and existing properties. We are focusing on ai agents. You see a clear path to them ever making any money from the things they are working on on the r d side . They have been very clear they are not making money now or dont believe this will be a big Revenue Initiative<\/a> the short term. Longterm we do believe they can make money and they are a consumer focused company, not as much enterprise. This is going to take some time to figure this out. But we think given the quality of the feedback from the channel about how they are using this, the open Source Community<\/a> living what theyre doing, there is no doubt there is an opportunity to monetize. This is in the numbers and an evaluation today. 2, 3, 4 years ago we could have this discussion around is this going to be material revenue where they could potentially license this model to companies to use and they would have a royalty for. The answer is yes. What the details look like, theyre trying to iron those out. Those are not in our model but we believe they can monetize it going forward. Ed buckley, it sounds like you are not that excited about augmented and virtual reality. Is that fair . That is fair. We are not. Ed it is either eight metaverse story or it is in ai story. Do you see a world in which meda can convince investors that we can have both echo i think we can have both, but the less they have talked about the metaverse, the higher the stock has gone. From an investor perspective, if they keep talking about the Software World<\/a> and what is going on with the social Network Inside<\/a> is great. This is an advertising driven story. The majority is driven by advertising. The jury is out whether the metaverse will be exciting were not. People are saying it is not going to be as exciting. And ai, there are realworld productivity measures we can see and how it is impacting our lives. Putting the headset on, being claustrophobic and playing a game with my kids for 10 minutes is not going to change my life. Right now, we are probably the biggest bear on the metaverse. We are very bullish about what they can do with the other side of their franchise. We are very clear about what we like and dont like. Caroline many executives are trying to see what analysts and investors like yourself like. A guest earlier in the week was talking but how generative ai is becoming such a focus. On the flipside is the regulatory environment. Amazon, meta, all of them have heard from investors. What are you making from this landscape . How do you expect this to unfold for amazon for example . The government has been trying to tackle big tech for a long time and we have said that the government oversight is the right thing to help protect all of us as consumers. But being big is not founded. Being bad is bad. As long as they find a middle ground, we have said this repeatedly. Anytime a regulatory scare comes in, you the stocks. Look at meta, google, amazon over the course of the last five years. Any regulatory scare, these need to be bought. Clearly there has been multiple attempts for the government to take down tech. It has not happened. Investors make money. I am all for regulation and doing the right thing to protect all of us. But what has happened is they have overstepped their boundaries and on after things that they dont necessarily have good food and putting or are educated on and that has caused problems. These are economies that have an end goal and i think they can meet in the middle. We have said this repeatedly. Like any regulatory scare on the internet, it has not done anything to be stocks. Pulp the chart at google the last five years and you can see it is amazing into the right chart. Respect it, believe in it, dont believe they are going to have a massive consequence. Ed when you outline the 10 minutes with the headset playing with your kids, there were parents in the San Francisco<\/a> studio team that that tickled them. Probably share that view. Brent hill, thank you. Sticking with devices, amazon has lured away long Time Microsoft<\/a> executive to head the devices and services business. After the devices chief announced his plans to retire, he was most recently the chief product officer at microsoft, overseeing windows and the hardware teams. Dave to head up lou origin. Caroline lots of revolving doors. Coming up, more on the lawsuit against amazon and what it means for big tech and antitrust. We will be joined by policy director and former ftc attorney, charlotte. And we will hear from the ftc chair on the complaint. She sat down with bloomberg yesterday. These are tactics, ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the skill and momentum needed to effectively compete online. Having achieved and protected its monopoly power, the details of how amazon is now exploiting that monopoly in ways that harm customers. Ed ftc chair lena con is seeking to end what she calls amazons illegal conduct, but did not go as far as to call for a breakup of amazon. We sat down with her at our Bloomberg Office<\/a> in washington, d. C. This is the conversation. This is a case about unlawful tactics amazon has used to maintain anomalies. We note in the complaint, both a set of antidiscounting tactics that amazon uses to punish any seller or retailer that dares to discount and ultimately these sets of tactics deter sellers and retailers from lowering prices and closes off an entire dimension of price competition. The other side of tactics we note is a course of scheme amazon uses to effectively require sellers use the moment service. This ends up stunting the development of independent fulfillment providers and also deprives actual and potential rivals to scale. That is the core theme. These are a set of tactics but ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the scale and momentum needed to effectively compete online. Having achieved and protected its monopoly power, our complaint details how they are exploiting that power in ways that harm customers, both the sellers, the American Families<\/a> that use amazon to do their shopping, both those shoppers and they sellers. The tens of thousands of sellers that use amazon to access those shoppers. It is done that through actively raising prices. Amazon takes close to one out of every two dollars from sellers that use its platform. It is also degraded its service adding a set of pay to play ads that make it more difficult for consumers to find what theyre looking for and steers them to higher price products. I encourage everybody to read the complaint and it details all of this conduct in great detail. We look looking forward to moving forward with it. One thing in the complaint is this phrase structural relief. You are seeking structural relief in this case, which implies a breakup. What would that look like . At this stage the plaintiffs focus on the issue of liability. We lay out a scheme that we believe violates the u. S. Antitrust laws. What we note in the complaint is that these different aspects of amazons scheme have an aggregated effect. The harm is accumulating, there are feedback loops and the net exclusionary effect of amazons conduct is significant. Ultimately we will want to make sure that any remedy is halting the illegal conduct, preventing a recurrence and ensuring that amazon is not able to profit and benefit from its illegal behavior. Right now we are focused on the question of liability. But women get to the issue of remedy, those will be the principles we are focused on. Caroline the ftc chair there. Amazon has responded to the lawsuit, with the Global Council<\/a> of the company writing that if the ftc were to be successful, the result would be anticompetitive and anticonsumer. Lets get into this with charlotte, director of policy Public Knowledge<\/a> and you previously worked in the Anticompetitive Practices Division<\/a> of the ftc, investigating, litigating and if you were there now, how much confidence would you have that this would be a routable action . Charlotte there are reasons the antitrust people at the ftc try not to answer these. It is hard to say at this early stage. But they feel confident. I watched the interview yesterday. It is so important to highlight this problem for people. It seems clear, even though amazon has built their reputation on having the best prices, but that did not come from being an efficient competitor. It came from pushing those thirdparty sellers to raise prices everywhere else. That is not fair competition and if that is what is going on, it needs to stop. Caroline what is interesting is investor and analyst reaction to all this. One particular analyst saying this is a benign scenario for amazon and they were surprised the narrowness of the overall case, saying there is not sort of a reference to disallowing vertical integration. Do you think the outcome should be some sort of breakup or has it got to be Something Else<\/a> . Charlotte i think of stopping the conduct is not going to be sufficient. This has been going on for a long time and replacing the competition that has been lost is really difficult. Step one is going to be to stop the conduct. But more will be needed. And i heard the chair yesterday to marrying that demurring that this would be far the future, the remedy stages later and separate. But it may be that separating off the fulfilled by amazon part of the business is the only way to address the lost competition, in which case the court would have to take that seriously. Ed some news in the last hour, the ftc has issued an order saying it will continue its internal case against activision and microsofts deal, but when it closes they can after the fact try to unwind it. This is what activision had to say in response. We are focused on working with microsoft toward closing. How the ftc uses limited taxpayer dollars is its decision. Given your cv, what is your response . Charlotte they are drawing on a point that the ftc has limited resources. There are so many important cases that we want them to bring with limited resources. But this case against microsoft and activision is an important case. They think that that has an opportunity to help consumers as i believe it would. It might be an important priority to spend those limited resources. But they are right, we need to increase funding for these agencies so that they can take on all of these important cases. Ed is she picking too many fights . Charlotte no. We need to pick these fights. And she spoke about the deterrence strategy, which can make this more efficient use of resources. If businesses out there can see this is not going to be an opportunity for you to try something risky because there is a fierce enforcer here, that can be a way of saving resources. That is part of the strategy and back and work overtime. Ed charlotte slaiman, thank you. This is bloomberg technology. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Caroline time for work shifting. We look at the changing landscape in the labor market, the big breakthrough overnight for hollywood. The Writers Guild<\/a> of america approved a new contract with the studios, ending the strike after months of intense negotiations. One of the biggest wins in the deal is some assurance that Artificial Intelligence<\/a> wont replace the jobs. Here with more details, and before we move to what is next to occur, ai, however they how have they won any production . The got what they wanted. The studios a greater they are not going to feed a bunch of scripts into the ai machine and come back and credit a movie to nai. Humans are still going to get the credit and that is what was really important. Studios didnt retain the right to experiment a little with ai. It remains to be seen a little how this is going to play out. Over the time being the writers are declaring victory. Caroline and to actors, they particularly were worried about ai replacing them. Is this an issue of . Yeah. Had somewhere concerns and now there is a template for these protections. I think there is optimism to believe that the writers having made this pact, now the actors will make some Real Progress<\/a> quickly. Ed some of the numbers are incredible. The lost of the economy based on the strike. The whole point is the cost of content is getting higher. Do studios feel good about this outcome . Their reaction has been notably more muted than the raiders. The writers have been exuberant, declaring victory. The studios gave up a lot, or than they thought they would have to fight months ago in terms of compensation, minimum staffing on shows and in terms of the ai protections. Ed the other thing you are writing about is locklin murdoch. What is next . He made the announcement he is stepping back as chairman of the companies, talking to all of the murdoch people about what this means. Very unclear. What does this mean . A lot of unanswered questions. Clearly it was framed as another vote of confidence by rupert in his chosen successor, locklin, his eldest son. The same time, issues of what is going to happen down the road remain fairly unresolved. They tried to recombine fox and News Corporation<\/a> earlier this year. Investors balked at that idea. So what comes next, they have been pretty quiet on the m a front for the past couple of years since acquiring tubi. There so basically a minnow in giants. Caroline this is when berg bloomberg world of technology. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts<\/a> or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. se fue la luz its happening. Pero todavia tenemos wifi para hacer las tareas. \u00bfy eso es algo bueno . Wifi y estudiar. Buenisimo. Wifi y pedir una pizza online seria buenisimo. Presentamos storm ready wifi. Solo de xfinity. Ahora puedes mantener una conexion confiable durante apagones, con datos celulares ilimitados y bateria de respaldo de hasta 4 horas para mantenerte conectado. Obtenlo solo con xfinity. El hogar del 10g network. Enterate mas hoy. Caroline welcome back to bloomberg technology, im Caroline Hyde<\/a> in new york. Emily and im ed and i megan ludlow in new york i am ed ludlow in San Francisco<\/a>. A lot of focus on economic data, with the Federal Reserve<\/a> will do and before you know it, earnings season will be back. I cant believe it. Two names we are looking at specifically right now and this has been a theme of the show, Artificial Intelligence<\/a> and hardware, it is medic connect. Developers conference, up. 3 . We will go even further later on what we expect, why we do or dont care about the harborside and we will focus on the ai side. Microsoft softer. 4 . We are about to bring a story that makes this move surprising. You think about the news flow. Would microsoft be higher on what you are about to bring our audience . Caroline what thought so. On paper they have made a pretty penny on an investment in openai, the fact that that company is talking to its investors about a potential share sale that would evaluate up to 80 to 90 billion. The soul according to the wall street journal, reporting sources. But the deal would allow employees most crucially to excel existing shares and be able to access some of the monetary value of the work theyve been doing without the company having to issue or raise fresh capital. It is extraordinary when you think that openai was only just starting at the beginning of this year. Ed and when they did issue shares in april, it was a 29 billion valuation, a hell of a jump. A big part of the story is liquidity. Big frustration when you are in a private startup for a decade and you cant sell your stock. Did you see the revenue numbers that the journal reported . s caroline the fact that bloomberg knows they will be bringing in about a billion in a year. How do you monetize the generative ai opportunity . Clearly openai is already doing that, there involvingevolving in terms of multimodal ways of interacting. Their number three behind tiktok and spacex, and who is the cofounder of openai . Ed very interesting, yuan musk doing his own thing in ai. Caroline what comes to the into impact of generative ai, a professor of Computer Science<\/a> at the mercy of southhampton and published back in 2017 and boy have the narratives changed. Talk about the exuberance you still see around the space and whether we are wringing our hands about the opportunity but also the risks. We should not rings ring our hands about the opportunities. The opportunities are there. I remember the. Com crash, i was just saying that, putting it out there. When everyone piled into Web Companies<\/a> in the technology was not mature enough, had a crash, generative ai, people may be buying into it that it is all proven as a thing business can use. Im not saying it wont be it, but at the moment is it reliable enough . There is a lot of competition. We dont really know what the Business Models<\/a> are. Theyre still to be explored. I personally would not be buying shares in ai companies, but im not a stocks and shares person. Im not an ecommerce type. Ed we appreciate the perspective. We will go to commercialization. Todays metaconnect and we will hear from the Parent Company<\/a> of facebook, what they are doing in the world of Artificial Intelligence<\/a>. But probably they have stuck to the doctrine of Opensource Development<\/a>. What is your position on Opensource Development<\/a> echo develop . Wendy im an academic. I love it for what it provides but i worry but the risks, who is responsible . Who is responsible for the use of that opensource and who is responsible for whether it goes to the bad actors with a good . Or the good . We talk about regulation of opensource and the core generators, the technology. Caroline i recall when metafirst announced it and nick claire was discussing why their focus on opensource income a i think you said this is potentially like giving people the instructions for eight nuclear bomb. Do you stand by that, that it be as impactful and you think metaand the rest of the Regulatory Community<\/a> are reacting to that . Wendy yes. I stand by what i said in the sense that it makes people think about what we are doing. As they are, the ai companies are saying we cant explain how this works but we are putting it out there anyway. Im not a doomsday or. Think generative ai will be a positive technology if used well and responsibly. Lots of people have pulled out of it. There saying it is dangerous, weve got to be careful. But they are giving away the opensource versions. It seems contradictory in my mind. If you think something is so dangerous, shouldnt you be making sure about who the people you are giving it to and what theyre going to do with it . Caroline also interesting, an executive has since left the business, claiming that their biggest concern is the fact that it is being dominated by big tech players and there is not enough of startups being able to come in and other players being at the table. Do you agree . We are about to have another summit where you are in the u. K. Wendy i wont be at the summit. I thought that is tiny, or about 120 seats in the conference room. If i were attending, there will not be wreps from every country. You may need diplomats, people from the intelligence agencies because it is all about cyber and national security. It will be the people running the Tech Companies<\/a> that will be there. There wont be diversity of thought, of any type there. So i really worry that this whole conversation is being run by the Tech Companies<\/a> and they are being asked to regulate themselves and they are giving away stuff here are the opensource guys. Who is responsible in this foodchain . Where the responsibility . Ed lets talk about the nation. I wanted to ask you about the nationstate level action. We had joe whyte on the show last week, the u. K. Technology ambassador. He was telling us about the meetings he is having with the Tech Companies<\/a> to secure the computer. The chipmakers and the hyper scale cloud providers. I understand your concerns, do you see the u. K. Trying to get itself at a National Level<\/a> in a position of leadership and what is a Nascent Technology<\/a> . Wendy of course. A lot of the things they are doing i applaud. You have to put more money into this, the u. K. Does. It will never be the amount of money due the u. S. And try to put century the u. S. Bigger than us. Theyre all in washington or in china. So we can only lead by regulating and governing. Im always certain that is the right thing for us to do because we are good at that sort of stuff. But since chatgpt came out, everything is flipped in the u. K. It has really turned so it is all about the technology and the safety risks and not about very little about what you feel. Good things this can be used for and how it is going to be used, involving the Wider Community<\/a> in those debates. Ed let me ask in your research, what are you most excited about about Artificial Intelligence<\/a> bringing to society Jericho Society<\/a> echo society . Wendy everyone talks about how the breakthroughs are already coming. Leave people of some of the boring jobs and create new jobs, it will help us solving the challenges of the worldly climate change, energy, food security. Well be able to do things with ai and data we could not possibly have done without it. It is going to change. Generative ai is going to change how you work and i work, how students work. It will be as profound as the instruction of the computer in the 70s. We all approach the creation of things differently. But it does not mean the generative ai is going to work us out of existence as it is now. There is such a height around the existential threat. Weve got to of course talk about that. It is not the immediate threat. It is more about misinformation and threats to the democratic process, how ai might be used in the campaigns next year. Those of the things that worry me. Ed the professor of Computer Science<\/a> at the university of southhampton, robust conversation as always. Thank you. Coming up, the future of marine transportation. Can it go electric . Will talk about it with arc cofounder ryan cook and another. This is bloomberg technology. At cdw, we get the importance of clear communication. And when your teams are spread out, thats not always easy. Our experts can help by implementing poly audio and Video Solutions<\/a> to keep you connected. From headsets to collaboration tools, poly Solutions Offer<\/a> simple setup and eliminate distracting background noise, so the people youre talking to only hear you. To collaborate with quality, trust poly and it orchestration by cdw. People who get it. Hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. Ed time for talking tech. Planned ipo will be kiefer gauging demand in the hong kong deals market. Companies have raised under 3 billion in 2023, on track for the least since the 1990s. Alibaba expected to raise at least 1 billion and binance says it is doing business in russia as operating in russia is not compatible with the compliance strategy. The Crypto Exchange<\/a> platform is selling its unit to, ask, launched one day before the deal was announced. Binance and its founder have been the subject of regulatory reviews in the u. S. Plus tiktok shop dealing with a major setback to the growth in nature. A band that inhibits companies from facilitating this. In a policy showing that locals will not be squeezed out. Caroline now youve got a real focus in the spotlight, where we are going to be talking electric boats. Take it away. Ed two interesting people coming up. The arc cofounder and cto, ryan cook alongside one of the partners at eclipse. They want to expand election operations in the marine industry. The tesla playbook to go massmarket in boats. I want to start with you. You had a limited number, fewer than 20 of these printer thousand dollar battery electric boats. The nexgen model is going to come in 2024 but we dont know anything about it. Tell us where these funds go to develop this model. Thanks. The funds really go to those extending production into a more massmarket vehicle. New york one was limitededition the ark one was limited edition and now you want to focus on everything on the water in the marine industry. There are a lot of gas boats and our mission is to convert them all to electric. These funds help us accelerate that mission. We will be using it we will be using it to work on our next massmarket product, we will unveil details in the next couple of months. Caroline what is the ultimate total Addressable Market<\/a> from your minds eye . Why are you excited to commit more capital . It is great to be here again. Like many other physical industries, the marine these industries have been here for 5000 years. It is still being run by the combustion engine. That will change by electrification, with batteries and electronics but you mentioned in the previous section, we love seeing ai in the physical industries and the impacts in society and climate. Ed you had seven years of engineering at spacex. Some of your investors are tesla alum as are your staff. Tesla started with the roadster and the model s, then the model three. Is it fair to say you are replicating that forward path forward . That is fair to say. We think it is the smartest way to go about doing this. The hardest part about working on a hardware startup is scaling that production, starting with something that is a smaller batch build, like the art one. It allows you to learn a lot, where the risks are minimized because there are fewer products out there. You take all of those learnings and move faster as we move into the next product. Rather than trying to jump to Something Else<\/a> massmarket. The other point here is that we are only 2. 5 years old. We have sold and delivered these to customers. That is incredible for a Hardware Company<\/a> and it speaks to the Engineering Team<\/a> that we have. First principles approach, we will excuse that quickly. Ed you put a lot of this into what do you make of this . There is a new Industrial Renaissance<\/a> in this country. I just came back from washington, d. C. Two weeks ago. The government is very serious. To help this country build again, we understand what that means from a geopolitics point of view and the needs to secure our resilience and supply chain men fracturing, Billing Companies<\/a> locally, youre putting on top of it automation and Software Data<\/a> to the biggest move we are seeing in physical industries, you now can build the most sophisticated boat in los angeles but will be not some thing that you could do before. I think we are seeing Companies Like<\/a> this, ark and others, going into industrial regime in this country. Caroline what is the headache for you as you want to take on this money and accelerate in a big way . Is it supply chain that remains a concern, talent pool . What hinders you if at all . It is probably a combination. Talent is the most important. It lets you accelerate and move quickly. We invest a lot in our people, we have a great Engineering Team<\/a> with a great background from tesla, rivian, spacex, all of those companies. The supply chain is top of mind as well. They are incredibly helpful. They have a lot of experience operating in the hardware space. Our main focus though is execution on production ramp. Anyone who served a Hardware Company<\/a> knows trying to Scale Production<\/a> is the hardest thing. Building one of something as easy. Hundreds and thousands is difficult. That is the next year or two, our entire focus is building a production line itself. Caroline theres something you dont have to sleep there too much as you want did. The arc ceo and cofounder ryan cook, and thank you both very much for your time. Well push ahead to the metaconnect event in just a few moments. What can we expect when it comes to vr, ai . We discussed in bloomberg technology. We are announcing next wednesday, the 27th, up occasions of generative ai. You will be able to communicate with businesses on whatsapp and messenger, some really extraordinary ai powered bots that will transform the way all of us as consumers interact with businesses and many other things. What do you see on the horizon . Uncertainty . Or opportunity. Whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined Risk Management<\/a> are needed most. Drawing on deep expertise across the worlds public and private markets in pursuit of longterm returns. Pgim. Our investments shape tomorrow today. Caroline all eyes are going to be trained on the metaconnect event, which will start in about half an hour. We have to touch on the news out of snap, closing a division focused on making augmented Reality Services<\/a> for businesses, pulling the plug on the attempt to diversify this business. Bloomberg intelligence, you wrote to react to what was a great he is coming up. What do you make of the decision to pull the plug . In the case of these companies relying on hyper scalars to give them the cloud capacity, investing in generative ai is not cheap and that is what every Small Company<\/a> is realizing. It is hitting their growth margin and in the case of snap, have a problem with topline growth. I think even though ar was touted as the next big thing, clearly it is not what investors are focused on. Their focus on generative ai and they are trying to cut costs. Snap, compared to their peers has a high intensity. It is about 40 . Compare that to their peers, 20 to 25 is the norm. Im not surprised they are cutting that line. Ed metaconnect and the keynote coming shortly. What is the story want to hear from meta . We the response using to monetize its, the same with google, monetizing cloud and then they are launching copilots and also integrating it in search. Meta, they have a large linwoods model and they have opensource debt. But we dont know how they are going to monetize it. A lot of the capacity they are buying is more for internal use. It will help with targeting but i think investors are more focused on external forms of monetization. If they can integrate their large leg which model and build an ecosystem tied to the api, that would be huge in terms of monetization. Caroline we will see how that unfolds and also the chatbots and the variations. That doesnt for this edition of bloomberg technology. Ed there will be people out there excited about it. Apple, spotify and i heart, all of the bloomberg platforms. In 24 hours time, from sf and new york, this is bloomberg. Technology. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh hi, im jason. Ive lost 228 pounds on golo. So when my doctor told me i needed weight loss surgery, avalarahhh i knew i had to make a change. Golos helped me transition to a healthier, sustainable lifestyle. Im so surprised just how crazy my metabolism has fired up. I have a trust in golo cause i know it works. Golo isnt like every other program out there, and im living proof of it. announcer change your life at golo. Com. Thats golo. Com. car engine revs engine accelerating texting clicks tires squeal glass shattering loose gravel clanking matt welcome to bloomberg markets, im matt miller. Quick check what is going on at this hour, the s p 500 down. 4 , adding to losses that we saw yesterday. The u. S. 10 year yield continuing to rise at the highest level we have seen it since 2007. Four spot 5951, going up five digits. Tightening financial conditions. The u. S. Dollar index as well, 1272, the highest we have since last year and nymex crude resuming the climb at 9386. That is west texas intermediate","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801708.us.archive.org\/11\/items\/BLOOMBERG_20230927_160000_Bloomberg_Technology\/BLOOMBERG_20230927_160000_Bloomberg_Technology.thumbs\/BLOOMBERG_20230927_160000_Bloomberg_Technology_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240703T12:35:10+00:00"}