Tech Earnings: AI Accelerators, Cloud Revenue, and Job Cuts

Alibaba partners with the IOC to support athletes in starting businesses, leveraging their shared entrepreneurial qualities.

### Tech Industry Insights: AI Growth, T-Mobile Success, and Chip Market Developments
* 🚀 ** AI Accelerator Market Growing**: AMD and NVIDIA benefit from AI market growth, with NVIDIA seeing a **12% stock increase** after a Morgan Stanley upgrade.
* 📶 ** T-Mobile reports **record-breaking quarter**, gaining market share and growing its **broadband business**.
* 💻 ** Intel plans to announce job cuts next week, as it looks to **reduce costs and fund its turnaround efforts**.
* 🇺🇸🇨🇳 ** US-China Tech Relations**: Sources suggest the US will **exempt Japanese and Dutch chipmakers** from upcoming China-related restrictions.
* 📈 ** Microsoft and Meta Earnings**: Microsoft's **cloud revenue slightly misses expectations**, while Meta's stock is **up ahead of its earnings report**.
* 🏗️ ** Samsung and Alibaba Olympic Partnerships**: Samsung **ramps up memory chip production**, while Alibaba partners with the IOC to help athletes **start businesses**.
* 🔍 ** Alibaba.com's AI Search**: Alibaba.com launches AI-enhanced e-commerce search, aiming to **improve user experience** and **empower entrepreneurs**.

♪ >> LIVE FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. WE BRING YOU THE DETAILS.
WHAT A MORNING. I WAKE UP TO THIS MORNING. MANY DIFFERENT STORIES AROUND
AI. INVESTORS LOOKING AT THE CAPEX
AND SAYING THEY KNOW SEE THE GROWTH OR MONEY COMING OUT OF
THE EQUATION. AMD IS A DIFFERENT STORY. WE WILL BE SPEAKING TO HER
PRETTY SOON. BLOOMBERG IS REPORTING SORTED
-- SOURCES THAT SAY THEY WILL CUT THOUSANDS OF JOBS.
HERE'S ANOTHER WHAT I'M REALLY INTERESTED IN.
T-MOBILE REALLY COMING AND STRONG.
THE STOCK HAS BOUNCED AROUND THIS MORNING.
THIS STORY IS INTERESTING. IT IS THE MONTHLY SUBSCRIBERS
WHO ARE COMING IN WELL. THE INDUSTRY AS A WHOLE HAS
DONE WELL ON THAT FRONT.

GOOD MORNING. GREAT TO BE HERE. I LOOK AT YOUR PEERS AND COMPETITION. THEY SEEM TO BE DOING WELL. WHERE ARE YOUR GAINS COMING FROM? WE ARE SEEING ORGANIC GROWTH IN THE INDUSTRY. EVERYBODY DID PRETTY WELL. T-MOBILE TOOK THE PRIZE. THIS WAS THE BIGGEST QUARTER TO EVER IN OUR HISTORY. THIS IS STILL A SHARE TAKING STORY FOR US. OF COURSE THE INDUSTRY IS GROWING. THAT IS HEALTHY AND POSITIVE. BACK IN CALIFORNIA, WE ARE A T-MOBILE HOUSEHOLD. IT IS THE TECHNOLOGY STORY I AM MOST INTERESTED IN. I ALWAYS WANT TO KNOW HOW MUCH OF A FACTOR THAT IS. TO THINK WHAT YOU CAN DO ON THE INCENTIVE SIDE. TO BRING IN NEW CUSTOMERS.

CUSTOMERS HAVE ALWAYS TRUSTED US TO BE THE BEST VALUE. THAT IS OUR HERITAGE. WE ARE NOT GOING TO GIVE UP A VALUE POSITION. WE HAVE THE BEST OVERALL VALUE. WE HAVE THE BALANCE SHEET AND THE CROSS-COST STRUCTURE TO DEFEND THAT FOR THE LONG HAUL. ONE OF THE TECHNOLOGY STORIES IS FIBER. YOU HAVE TALKED ABOUT THE IMPORTANCE OF THAT. I WANT YOU TO GIVE ME SOME SPECIFICS ON WHY AND HOW YOU GROW YOUR INVESTMENT. LAST WEEK WE ANNOUNCED THAT WE ARE COLLABORATING TO PURCHASE METRONET. IT IS THE FASTEST-GROWING FIBER COMPANY IN AMERICA AND ARGUABLY THE MOST IMPORTANT. IT IS REALLY FABULOUS TO BE COLLABORATING WITH THEM. IS THE LONG-TERM OPPORTUNITY FOR YOU BUNDLING?

IS THAT THE IDEA? >> THAT IS THE CURRENT
OPPORTUNITY. WE ARE A MAJOR BROADBAND
PROVIDER. WE TOOK THE HIGHEST PERCENTAGE
SHARE OF BROADBAND EVER IN OUR HISTORY: 75 PERCENT. OUR VALUE PROPOSITION IS
RESONATING WITH PEOPLE. THEY TRUST OUR BRAND. >> I COVER SPACEX.
I AM REALLY INTERESTED IN THAT RELATIONSHIP. YOU HAVE DIFFERENT OPTIONS.
WHAT IS THE BIG PICTURE STRATEGY? >> I'M GLAD YOU ACKNOWLEDGE
THAT BENEFIT. WE HAVE PARTNERSHIPS WITH MOST
OF THE MAJOR U.S. AIRLINES. THAT IS SO GREAT.
WE ARE DOING THAT THROUGH SATELLITE CONNECTIVITY WITH A
LOT OF PARTNERS. WE HAVE A TECHNOLOGY ALLIANCE
WITH SPACEX. WE WANT TO ELIMINATE DEAD ZONES.
>> INTERESTING TECHNOLOGY

CONVERSATION: I TOLD YOU THIS WAS A DAY WE
NEED TO BUCKLE UP. WE HAVE A LOT OF EARNINGS COMING IN. THEY CAN FAST.
THIS FOLLOWS POSITIVE EARNINGS RESULTS. ALSO, SOME INTERESTING RECOVERY.
GOOD MORNING TO YOU. I THINK THAT IS WHERE EVERYONE
WAS LOOKING, WHETHER OR NOT YOU COULD GO
BEYOND THAT. I WONDERED IF WE COULD START
WITH THE FACTORS BEHIND THAT. WHAT CHANGED? >> GOOD MORNING.
IT IS GREAT TO BE AREA. WE HAD A VERY STRONG SECOND
QUARTER. OUR DATA CENTER BUSINESS MORE
THAN DOUBLED YEAR ON YEAR IN THE SECOND QUARTER. WE ARE SEEING AN ENVIRONMENT
WHERE EVERYONE NEEDS MORE DATA CENTER INFRASTRUCTURE.
COMPUTING IS REALLY THE FOUNDATION OF WHAT DRIVES ALL
OF THESE CAPABILITIES GOING

FORWARD. WHAT WE SAW OVER THE PAST QUARTER WAS WE PASSED SOME VERY SIGNIFICANT MILESTONES. RAMPING UP OUR SUPPLY CHAIN AND PASSING IMPORTANT DATA CENTER CUSTOMER MILESTONES. WHERE CUSTOMERS HAVE MOVED PRODUCTS INTO PRODUCTION. WE UPDATED OUR FULL-YEAR GUIDANCE. I THINK WE ARE SEEING GREAT TRACTION IN OUR HARDWARE AND SOFTWARE MILESTONES. OVERALL FEELING REALLY GOOD ABOUT THE SET UP GOING INTO THE SECOND HALF OF THE YEAR. >> I AM REALLY INTERESTED IN THE DESIGN AND PERFORMANCE DIFFERENCES IN ALL OF THE AI ACCELERATORS OUT THERE. YOU GAVE THE EXAMPLE OF MICROSOFT AND ITS USE OF THAT GENERATION. WHEN YOU ARE SPEAKING, WHEN MY THEY OPT THAT. WHAT IS THE SPECIFICATION OR PERFORMANCE DRIVER THAT WOULD LEAD TO BETTER SOLUTIONS?

I WOULD LIKE TO SAY THAT MICROSOFT IS A PHENOMENAL PARTNER FOR US, ACROSS THE DATA CENTER AS WELL AS THE CLIENT BUSINESSES. WHEN YOU SEE HOW COMPLEX THESE SYSTEMS ARE, YOU WANT TO HAVE THE BEST TECHNOLOGY CAPABILITY. SUFFICE IT TO SAY THAT YOU NEED THIS TYPE OF COMPUTING FOR TRAINING AND INFERENCE. WE HAVE THE HIGHEST MEMORY. THAT IS REALLY HELPFUL WHEN YOU ARE ASKING QUESTIONS, AND YOU WANT YOUR ANSWERS TO RETURN FASTER. YOU WANT THE FASTEST ACCELERATOR OUT THERE. WE DO REALLY WELL IN THAT FRAMEWORK. WHEN YOU LOOK AT THE OVERALL MARKET, IT IS GROWING SO FAST. THERE IS NO ONE SOLUTION THAT FITS ALL. YOU HAVE DIFFERENT WORKLOADS THAT ARE OPTIMIZED WITH DIFFERENT HARDWARE. I THINK WE HAVE A TREMENDOUS

OPPORTUNITY.
WE ARE EXCITED ABOUT THE OVERALL MARKET GROWTH.
AS MORE CUSTOMERS GET A CHANCE TO USE OUR TECHNOLOGY, WE ARE
GETTING POSITIVE FEEDBACK. >> YOU SAID THIS HAS LEGS.
IT WILL CONTINUE. YOU TALK ABOUT A PORTION OF HOW
MUCH OF THE INVESTMENT IS GOING TO TRAINING AT THIS STAGE? >> WHEN WE LOOK AT THIS CYCLE,
WE HAVE TALKED ABOUT THIS BEFORE.
WE ARE FORECASTING THAT THE OVERALL MARKET FOR AI
ACCELERATOR'S WILL BE OVER 400 BILLION DOLLARS.
WHICH IS A HUGE MARKET OVERALL. IN THAT YOU WILL NEED A LOT OF
TRAINING AND INFERENCE. MOST PEOPLE WOULD SAY YOU ARE
BUILDING A FOUNDATION WITH TRAINING.
THAT IS A PLACE WHERE YOU WANT THE LARGEST MODELS TO BE
CAPABLE OF USING ALL OF THE

LARGE DATA INFRASTRUCTURE.
GOING FORWARD, YOU WOULD EXPECT THAT INFERENCE DEMAND WOULD
SURPASS TRAINING. MOST PEOPLE BELIEVE THAT.
WE WILL SEE HOW THIS PLAYS OUT IN THE NEXT COUPLE OF YEARS.
YOU WILL NEED FOR TRAINING AND INFERENCE.
AND YOU WILL HAVE A VERY DIVERSE SET OF MODELS AND NEEDS.
SO YOU HAVE THE LARGEST FOUNDATIONAL MODELS OUT THERE.
AND YOU HAVE MANY ENTERPRISES THAT ARE TRAINING ON THEIR OWN
DATA. THEY WILL USE A DIFFERENT TYPE
OF INFRASTRUCTURE FOR THAT. WHAT IS ACTUALLY BEING DONE
TO ADDRESS THE SUPPLY CONSTRAINTS, SUCH AS THEY ARE,
THAT IMPACT YOUR ABILITIES? I WOULD SAY THAT OVERALL,
WHEN YOU LOOK AT THE SEMICONDUCTORS SUPPLY CHAIN, IT
HAS BEEN AMAZING. WE HAVE SUBSTANTIALLY INCREASED
THE OVERALL CAPACITY AS AN

INDUSTRY TO ADDRESS THIS HIKE
DEMAND. WE ANNOUNCED IN THE SECOND
QUARTER THAT WE DID OVER $1 BILLION OF REVENUE.
THAT IS A FANTASTIC NUMBER. WE SEE THAT INCREASING EVERY
QUARTER AS WE GO INTO THE SECOND HALF OF THE YEAR.
THE SUPPLY CHAIN WILL CONTINUE TO BE TIGHT.
THAT'S JUST SAYS A BIT ABOUT HOW MUCH DEMAND THERE IS OUT
THERE. WE HAVE GREAT PARTNERSHIPS AND
WE ARE WORKING ON EXPANDING THAT AS QUICKLY AS POSSIBLE. >> THE DOMINANT PLAYER IS
COMMITTED TO THIS. A NEW GENERATION OF CHIP.
WHAT DO YOU DO TO COMPETE WITH THAT AND DEVELOP NEW PRODUCTS
MOVING FORWARD? >> WHAT WE SEE IN THE MARKETS,
SPENDING TIME WITH THE INDUSTRY LEADERS IS THIS MARKET IS
MOVING SO FAST THAT YOU HAVE TO

BE ON AN ANNUAL CADENCE.
WE HAVE ACCELERATED AND EXPANDED OUR ROADMAP.
LATER THIS YEAR, WE ARE GOING TO LAUNCH A NEW SERIES THAT IS THE
NEXT CAP IN THE ROADMAP. NEXT YEAR, WE WILL LAUNCH A
DIFFERENT SERIES THAT IS A BRAND-NEW ARCHITECTURE.
WE ARE ALREADY WELL ON OUR WAY. WE ARE ON AN ANNUAL CADENCE.
IT IS NOT JUST ABOUT THE ACCELERATOR.
CPUS CONTINUE TO BE VERY IMPORTANT.
NETWORKING CONTINUES TO BE VERY IMPORTANT.
SYSTEMS' CAPABILITIES ARE ALSO VERY IMPORTANT.
WE WANT TO BRING THESE TOGETHER TO HELP WITH THE BEST
INFRASTRUCTURE. ED: THERE WILL BE A BODY OF PEOPLE
OUT THERE THAT THINK ABOUT PC GAMING.
THAT IS KIND OF THE REALITY OF IT.
HE PAINTED A POSITIVE PICTURE OF THIS IN THE SECOND HALF OF
THE YEAR.

IS THAT A STORY OF A MARKET RECOVERY AND BROADLY THE MARKET DOING WELL? >> WE SEE A COUPLE OF THINGS. THE PC MARKET IS A GOOD MARKET. THE SECOND HALF OF THE YEAR IS STRONGER THAN THE FIRST HALF. WE SEE SOME POSITIVE SIGNS IN THE MARKET. I WILL SAY I'M VERY EXCITED ABOUT AI PC'S. THEY WILL BE AN INFLECTION POINT FOR WHAT PC'S CAN DO IN ALL OF OUR DAILY LIVES, WHETHER YOU'RE TALKING ABOUT A CORPORATE ENVIRONMENT OR A CONSUMER HOME ENVIRONMENT. SO THAT IS A POSITIVE. WE ARE NOW JUST LAUNCHING A NEW GENERATION OF CHIPS. BOTH NOTEBOOKS AND DESKTOPS. THEY ARE FANTASTIC. WE ARE HAPPY ABOUT THE RECEPTION OF THOSE. THAT IS AN OPPORTUNITY THAT IS OUR PRODUCT ROADMAP LAUNCHING

THAT GIVES US A SECOND LIFT.
GOING INTO NEXT YEAR, YOU WILL SEE A LOT MORE OF THIS.
WE BELIEVE AN ENTERPRISE REFRESH CYCLES.
SO I THINK THERE ARE POSITIVE INDICATORS FOR THE PC MARKET.
GOING FORWARD. ED: WOULD YOU BE ABLE TO GIVE ME
SOME FORWARD-LOOKING COMMENTARY ON THE GAMING BUSINESS? >> LET ME TALK A LITTLE BIT
ABOUT GAMING. THAT IS A GREAT SEGMENT. WE TRULY VALUE THOSE STRONG
PARTNERSHIPS WE HAVE WITH MARKET LEADERS LIKE MICROSOFT
AND SONY. TYPICALLY THESE CONSOLE CYCLES
HAVE IN AN AND A FLOW. SO WE ARE IN THE SECOND HALF OF
THAT CYCLE. WE HAVE SEEN A DECLINE IN
REVENUE. THAT WAS VERY MUCH AS EXPECTED.
WE THOUGHT IT WOULD TAKE UNTIL

THE NEXT REFRESH CYCLE TO SEE A SUBSTANTIAL CHANGE IN THAT. THIS IS VERY MUCH A MARKET WE KNOW AND LOVE, AND WE BELIEVE HAS GREAT LONG-TERM ALIGNMENT WITH OUR ROADMAP. ED: I KNOWLEDGE THAT YOU HAVE HAD A VERY BUSY YEAR. SPENDING A LOT OF TIME ON AIRPLANES. YOU WERE ON STAGE WITH A NUMBER OF PARTNERS. WE TALKED RIGHT NOW ABOUT LEGACY GAMING. DO YOU HAVE ANY EVIDENCE OR DATA THAT THOSE PARTNERS ARE PUTTING YOU INTO SALES AREAS WHERE YOU MIGHT NOT HAVE ANY EXPERIENCE. IF YOU ARE TELLING TECHNOLOGY TO DO THAT. >> THAT IT'S A GREAT QUESTION. WE LOVE OUR PARTNERSHIPS. THEY ARE WHAT MAKES THIS INDUSTRY TRULY SPECIAL. WHEN YOU PUT IT TOGETHER AND REALLY BRING TOGETHER THE BEST

OF THE INDUSTRY IS WHEN YOU GET
THE GREAT PAYOFF. WHEN YOU LOOK AT OUR BUSINESS,
LET ME TALK A LITTLE BIT ABOUT OUR ENTERPRISE SERVER BUSINESS.
I AM PLEASED TO SEE THE PROGRESS WE ARE MAKING THERE. WHEN YOU THINK ABOUT THIS
MARKET, THERE IS A SET OF WORKLOADS THAT NEED THE BEST
GENERAL PURPOSE COMPUTING. THAT IS WHAT WE HAVE WITH OUR
FOURTH GENERATION AND NOW OUR FIFTH GENERATION. VERY, VERY IMPORTANT FOUNDATION
FOR THESE ENTERPRISE DATA CENTERS.
WE MADE SUBSTANTIAL PROGRESS IN THE FIRST HALF OF THE YEAR. I WOULD SAY ONE THIRD OF OUR
NEW DESIGNS ARE FROM CUSTOMERS THAT HAVE NEVER USED US BEFORE. AS WE INTRODUCE AMD MORE TO
BROADER CUSTOMERS, WE ARE SEEING GREAT TRACTION.
WE HAVE THE BEST PERFORMANCE BY DOLLAR OUT THERE.
WE DO SEE A TREMENDOUS

OPPORTUNITY IN THE ENTERPRISE MARKET, BOTH ON THE TRADITIONAL COMPUTING SIDE AS WELL AS AI. THOSE ARE GREAT OPPORTUNITIES. ED: WHAT IS THE TALENT STORY FOR THE BEST PEOPLE? >> WE ARE VERY HAPPY WITH THE TALENT STORY. WE HAVE A TREMENDOUS ENGINEERING TEAM THAT IS DOING GREAT THINGS. WE JUST ANNOUNCED OUR INTENT TO ACQUIRE A FANTASTIC AI COMPANY BASED IN EUROPE. IT ALSO ADDS GREAT TALENT TO THE COMPANY. WE ARE VERY HAPPY WITH THE GREAT ENGINEERING CAPABILITIES THAT WE HAVE TO MOVE THE ROADMAP FORWARD. ED: GREAT TO HAVE YOU HERE. THANK YOU. LET'S CHECK IN ON MICROSOFT. THESE ARE WAS SHARES LOOK LIKE. THERE WAS AN 8% CONTRIBUTION FROM AI. BUT THIS CONCERN ABOUT THE SPENDING TO GET THERE.

WE WILL ALSO LOOK AT META-RESULTS. THE STOCK WAS KIND OF BUOYANT. LET'S SEE WHAT HAPPENS. COMING UP, WE HAVE MORE EARNINGS. AND A STORY ABOUT A NEW PARTNERSHIP FOR UBER AND A LOT MORE. TAKE A BREAK AND WE WILL BE RIGHT BACK. THIS IS BLOOMBERG. ♪ >> HUBER IS TEAMING UP TO BRING ELECTRIC VEHICLES TO THE RIDE-HAILING APP, STARTING IN LATIN AMERICA AND EUROPE BEFORE EXPANDING ELSEWHERE. I FIND THIS FASCINATING. THE IDEA IS AVAILABILITY. WHAT DID YOU MAKE OF IT? >> UBER HAS SO FAR BEEN A GREAT JOB OF ESTABLISHING A NETWORK OUTSIDE OF THE U.S. THEY DO NOT HAVE ACCESS TO THE CHINA MARKET. SO THIS IS WHERE THEY HAVE THE NUMBER ONE POSITION. MOVING TO THE EV SIDE MAKES A

LOT OF SENSE. TESLA IS NOT LOOKING TO ADD ONE
OF THESE COMPANIES. IT MAKES SENSE FOR UBER TO
COLLABORATE WITH THESE COMPANIES. >> NO FINANCIAL TERMS BETWEEN
THE COMPANIES. I FIND THAT PARAGRAPH VERY
IMPORTANT. YOU KNOW ABOUT MY REPORTING ON
ROWBOAT TAXIS -- ROBO TAXIS. >> ALL OF THESE COMPANIES ARE
BEHIND TESLA WHEN IT COMES TO DEVELOPING THE SOFTWARE
CAPABILITIES FOR AUTONOMOUS DRIVING.
I WOULD STILL SAY UBER DOES NOT HAVE THE PLATFORM.
ALL OF THESE COMPANIES ARE NOT THERE WHEN IT COUNTS TO THE
SOFTWARE. >> LET'S TALK ABOUT MICROSOFT.
I THINK WE KNOW THE STORY. SLOWER THAN HOPE FOR ROAD --
GROWTH. I SAW THAT STRAIGHT AWAY.
IT WAS NOT BEING DISCUSSED.

A 15-YEAR TIME HORIZON TO MONETIZE THE. THAT IS A CLUE FOR HOW LONG THIS WILL TAKE FOR IT TO BE REAL. >> NVIDIA TALKED ABOUT SHIPPING. IMAGINE IF YOU ARE A CONSUMER OF THESE SERVICES. YOU WANT ACCESS TO THE LATEST CHIPS. THAT AUTOMATICALLY DRIVES COMPRESSION. THEY ARE USING AN EARLIER VERSION OF THE CHIP. THAT IS WHAT WE SAW. THERE WAS SOME KIND OF SUBSTITUTION GOING ON. ALSO THE PRICING COMPRESSION FROM THE LATEST VERSION. ED: WE HAVE ANOTHER LONG DAY TODAY, AND I THINK META-IS THE FOCUS. WHAT IS THE EXPECTATION FOR THIS QUARTER? >> YOU WANT TO SEE TOPLINE GROWTH. THIS IS THE LAST QUARTER. YOU WANT TO SEE AT PRICING CONTINUING TO TREND HIGHER. PINTEREST WAS NOT VERY CONVINCING LAST NIGHT IN TERMS

OF THAT. THEY ARE THE BIGGEST EMPLOYERS
OF AI. ED: WE KNOW THAT BUYING THAT
VOLUME. WHAT WILL THEY HAVE TO DO TO SETTLE THE MARKET? >> THEY DO NOT HAVE A CLOUD
REVENUE. IT HAS TO REFLECT IN THE AD
PRICING. ED: IT IS SO AWESOME TO BE HERE
NEXT TO YOU IN NEW YORK CITY. COMING UP, THE CEO OF PINTEREST
JOINS US EXCLUSIVELY TO BREAK DOWN HIS COMPANY'S EARNINGS.
THEY WERE RELEASED AFTER THE CLOSING BELL ON TUESDAY.
WE ARE REALLY LOOKING FORWARD TO THIS.
STAY WITH US. WE WILL BE RIGHT BACK. ♪ ED: WELCOME BACK TO BLOOMBERG
TECHNOLOGY. ED LUDLOW IN NEW YORK CITY. CHIP STOCKS ARE BUOYANT.
MORGAN STANLEY IS GOING OFF

LIKE A ROCKET THIS MORNING.
YOU JUST GOT THE LOWDOWN ON META.
HOW DOES ALL THE INVESTMENT IN AI INFRASTRUCTURE TRANSLATE YOU
ADVERTISING PRICING? THEY DO NOT HAVE A CLOUD
BUSINESS. ONE MOVER TO THE DOWNSIDE IN
EARNINGS IS CONTRAST. IT IS OFF BY 13%. TOP END OF THE RANGE, $900
MILLION. WHAT IS INTERESTING ABOUT
PINTEREST IS THE SIZE OF ITS USER BASE.
LET'S BRING IN THE CEO, BILL READY.
GOOD MORNING AND THANK YOU FOR JOINING US ON BLOOMBERG
TECHNOLOGY. BILL: THANK YOU FOR HAVING ME. ED:
WHAT WERE THE FACTORS BEHIND THE RANGE?
IT IS BELOW STREET ESTIMATES. BILL:
IF YOU LOOK AT Q2, WE PUT UP RECORD USER GROWTH.
WE CAME IN ABOVE GUIDANCE ON

REVENUE.
21%-PLUS REVENUE GROWTH. Q2 WAS A REALLY STRONG QUARTER.
Q3, WE HAVE FIVE-POINT TOUGHER COMPS.
WHEN YOU STEP BACK FROM THAT, WE ARE GROWING FASTER THAN OUR
LARGER PEERS THAT HAVE ALREADY REPORTED.
WE ARE SEEING OUR BEST PRODUCT MARKET FIT IN YEARS. WE ARE WINNING SHARE OF WALLET
WITH SOME OF THE LARGEST ADVERTISERS.
THE FUNDAMENTALS OF THE BUSINESS ARE SOUND, AND WE FEEL
GREAT. AS WE GUIDE FORWARD, IT IS RELATIVELY CONSISTENT GROWTH
WITH WHERE WE HAVE BEEN, ONCE YOU ADJUST FOR CURRENCY
FLUCTUATIONS, DESPITE THE FACT WE HAVE A FIVE-POINT TOUGHER
COMP. YOU ARE SEEING SOME OF THAT
HERE. IF YOU PULL BACK, THE FUNDAMENTALS OF BUSINESS HAVE
NEVER BEEN BETTER FOR

PINTEREST. ED:
SOMETHING YOU TOLD MY COLLEAGUES AT BLOOMBERG NEWS IS
HISTORICALLY, PINTEREST IS A GREAT PLACE FOR WINDOW SHOPPING,
BUT ALL THE STORES WERE CLOSED. HELP ME UNDERSTAND THAT. BILL:
I CAME IN TWO YEARS AGO, AND AT THAT TIME, PINTEREST WAS
PRIMARILY ABOUT BROWSING. THERE WERE NOT A LOT OF CLICKS
AND CONVERSIONS TO SPEAK UP FOR ADVERTISERS.
WE MADE TREMENDOUS PROGRESS TO MAKE IT SO USERS CAN TAKE
ACTION ON THE THINGS THEY FIND ON PINTEREST. IT HAS BEEN AT
THE CORE OF HOW WE HAVE ACCELERATED USER GROWTH.
LAST TIME I WAS ON THE SHOW, WE TALKED ABOUT SEVEN CONSECUTIVE
QUARTERS OF EXCEL DIVERTED USER GROWTH.
THE CORE IS THE ACTION ABILITY.

NOT ONLY DO USERS LOVE THE ACTION ABILITY, PINTEREST IS WHERE GEN Z GOES TO SHOP. BUT IT IS GREAT FOR ADVERTISERS. IT IS OUR THIRD QUARTER IN A ROW DOUBLING CLICKS TO ADVERTISERS YEAR ON YEAR. THAT IS WHY YOU SEE US GAINING SHARE WITH RETAILERS THAT ARE INCREASING SHARE OF WALLET WITH PINTEREST. AND WE ARE SEEING A TAKE HOLD ACROSS RETAIL. STRONG RESULTS IN Q2. ED: REALLY QUICK BECAUSE YOU WERE TALKING ABOUT YOUR USER BASE. WE JUST SHOWED A GRAPHIC THAT SHOWS THE SCALE. 40% IS GEN Z. THERE IS A QUESTION ABOUT THE ACTION THAT AUDIENCE TAKES. DO THEY BUY ANYTHING HAVING SPENT TIME ON THE PLATFORM? BILL: ABSOLUTELY. TWO THINGS I WOULD SAY ABOUT GEN Z. THEY ARE THE TASTE MAKERS FOR

THE NEXT GENERATION.
PEOPLE DO NOT JUST SHOP ON PINTEREST, BUT CURATE THEIR
TASTE. IT IS A UNIQUE BEHAVIOR. PEOPLE ARE PLANNING OUTFITS AND
WHAT THEY WILL BUY LONG BEFORE THEY DO IT. IT GIVES US A RICH SIGNAL TO
FEED OUR AI FOR RECOMMENDATIONS. IT IS NOT JUST GOOD FOR GEN Z,
BUT THEY ARE THE TASTE MAKERS FOR OLDER GENERATIONS.
TO YOUR POINT ON GEN Z BUYING, PINTEREST IS WHERE GEN Z GOES
TO SHOP. IT ALSO SPANS ALL THE WAY UP TO
RECENT COLLEGE GRADUATES AND PEOPLE IN THEIR FIRST JOBS AND
APARTMENTS. WE SEE A LOT OF SHOPPING
BEHAVIOR THAT IS CONSISTENT ACROSS DEMOGRAPHICS ON THE
PLATFORM. ED: PINTEREST DOES NOT SELL
POLITICAL ADVERTISEMENTS. ARE YOU ABLE TO QUANTIFY IN
TERMS OF MISSED OPPORTUNITY?

BILL: IT IS A GREAT QUESTION.
WE HAVE DONE A NUMBER OF THINGS TO INVEST IN THE POSITIVITY OF
THE PLATFORM. IF YOU LOOK AT A SHORT-TERM
OPTIMIZATION, THERE IS A LOT OF MONEY SPENT ON POLITICAL ADS
OVER THE COMING QUARTER. WE DO NOT TAKE THAT MONEY
BECAUSE WE SEE IT AS AN INVESTMENT IN THE LONG-TERM
HEALTH OF OUR PLATFORM. AS WE ARE WINNING WITH GEN Z, ONE OF THE TOP REASONS GEN Z
CITES FOR COMING IS A SEA IT IS A PLACE AWAY FROM TOXICITY.
WE HAVE SEEN THIS COME THROUGH AND DRIVE USER GROWTH.
WE ARE SEEING IT CUT THROUGH WITH ADVERTISERS.
WERE ADVERTISERS WANT TO BE IN A BRAND SAFE ENVIRONMENT,
BRANDS ARE BUILT ON POSITIVITY AND DO NOT WANT TO SHOW UP NEXT
TO POLARIZING CONTENT.

THERE WILL BE A LOT OF MONEY
SPENT ON POLITICAL ADS, BUT WE ARE CHOOSING NOT TO TAKE THOSE
BECAUSE WE THINK IT IS IN THE LONG-TERM BENEFIT OF OUR
PLATFORM. ED: LET'S TALK ABOUT ARTIFICIAL
INTELLIGENCE. SOME GRANULARITY IS IMPORTANT.
WHICH PARTNERS ARE YOU BUILDING ON TOP OF, AND CAN YOU GIVE A
SENSE OF THE SPECIFIC AI SPEND RELATED TO TARGETING AND AD
IMPROVEMENT? BILL: AI IS A CORE COMPETENCY FOR US.
I TALKED ABOUT IT ON PRIOR EARNINGS CALLS.
WE ARE NOT ONLY GROWING USERS AT RECORD LEVELS, WE ARE
DEEPENING ENGAGEMENT PER USER, AND A BIG SPOT IS INCREASING
THE RELEVANCY OF RECOMMENDATIONS.
ON A PRIOR CALL THROUGH LARGE LANGUAGE MODELS, WE SAW A 10
PERCENTAGE POINT LIFT IN

RELEVANCY OF RECOMMENDATIONS.
THAT IS REALLY ENCOURAGING. THAT IS WHY USERS ARE COMING
BACK. THEY ARE FINDING MORE OF WHAT
THEY ARE LOOKING FOR ON PINTEREST.
WE HAVE DELIVERED GREAT MARGIN EXPANSION.
EVEN AS WE WERE INVESTING ON AI LAST QUARTER, WE HAD 600 BASIS
POINTS OF MARGIN EXPANSION. THE REASON FOR THAT IS WE ARE
DELIVERING GREAT USER ENGAGEMENT FROM THE AI.
USER ENGAGEMENT THAT IS HIGHLY MONETIZED ABLE.
WE ARE TURNING AI INVESTMENT INTO GREAT RETURN.
ADVERTISERS WANT TO MEET THE USERS WHERE THEY ARE SHOPPING,
AND THAT IS DRIVING AD SPEND. WE ARE FINDING WE CAN DELIVER
GREAT RETURN ON OUR AI INVESTMENTS.
THIS IS ONE THING THAT IS UNDERAPPRECIATED ACROSS THE
INDUSTRY.

MUCH LIKE CLOUD COMPUTING,
ACCESS TO BASIC BUILDING BLOCKS. BUT WHO HAS A UNIQUE SIGNAL ON
PINTEREST GIVES US A UNIQUE SIGNAL TO FEED OUR AI. ED:
THE STOCK IS DOWN 12%. BIG YEAR LAST YEAR, MORE THAN
50% GAIN. YOU ARE TWO YEARS INTO THE JOB.
WHAT IS THE BIGGEST ACTION YOU HAVE TO TAKE IT AND WHAT YOU
WANT TO TAKE? BILL: WE HAVE SEEN VOLATILITY BEFORE.
IF YOU STEP BACK, WE HAVE CONSISTENTLY OVER THE LAST TWO
YEARS DEMONSTRATED STEADY PROGRESS IN IMPROVING THE
OVERALL HEALTH OF THE BUSINESS. TOP LINE, BOTTOM LINE, USER
GROWTH AND ENGAGEMENT. THE FUNDAMENTALS ARE SOUND AND
IMPROVING. WE WILL LOOK TO CONTINUE TO DO
THAT. THE BIGGEST DRIVERS IN THE BUSINESS. 1, REALLY INVESTING
IN AI AND THE ACTIONABILITY ON

THE PLATFORM OF THE AI.
POSITIVITY IN TERMS OF DELIVERING A SAFE SPACE FOR OUR
USERS. OUR USERS GO TO PINTEREST
BECAUSE IT IS A PLACE THEY CAN INVEST IN THEMSELVES WITHOUT
THE COMPARATIVE, PERFORMATIVE NATURE OF THE EXPERIENCE WITH
THE REST OF SOCIAL MEDIA. THEY ARE REALLY WORKING WELL
FOR US WHEN YOU ZOOM OUT OVER THE PERIOD.
WE WILL KEEP INVESTING IN THE THINGS THAT ARE WORKING BECAUSE
OUR FUNDAMENTALS HAVE NEVER BEEN HEALTHIER. ED:
PINTEREST CEO BILL READY. THINK YOU FOR COMING BACK ON
BLOOMBERG TECHNOLOGY. MICROSOFT'S CLOUD REVENUE
SLIGHTLY MISSING EXPECTATIONS. IT IS TESTING THE PATIENCE OF
INVESTORS. THAT INCLUDES MIZUHO. ANALYST SAYING THEY ARE LESS
EXCITED ABOUT THE NEAR TERM.

THE FIRM REITERATES A PRICE TARGET OF $480 ON MICROSOFT. I WANT TO BRING IN DAN O'REGAN. I WANT TO GO BACK TO WHAT I WAS TALKING ABOUT. THE COMMENT ON THE CALL FROM THE CFO AT MICROSOFT SAYING TO MONETIZE THE INVESTMENT IN DATA CENTER IS A 15-YEAR TIMELINE. HOW DID YOU REACT TO THAT? DAN: THANK YOU FOR HAVING ME. I THOUGHT THEY DID AN EXCELLENT JOB OF THREADING THE NEEDLE. WHAT THEY DID OVER AND OVER AGAIN IS REALLY EMPHASIZE THIS SPENDING WILL BE METICULOUS. IT IS PREDICATED ON DEMAND. THEY CONSTANTLY LOOK FOR SIGNALS AND SPEND ACCORDINGLY. A LOT OF THE SIGNALS ARE NEAR-TERM BUT A LOT ARE LONG-TERM, NORTH OF 10-15-YEAR PARAMETERS. THEY ARE GOING TO MAXIMIZE THE

OPPORTUNITY.
MANAGEMENT HAS SAID OVER AND OVER AGAIN, THE RISK OF MISSING
OUT ON AI GREATLY OUTWEIGHS THE RISK OF OVERSPENDING.
I THINK THEY ARE EXCELLENT STEWARDS OF CAPITAL, AND I WOULD
TRUST THEM. ED: QUICK ON MICROSOFT.
THEY SEEM A VICTIM OF, YOU BETTER NOT MISS ESTIMATES AT
ALL IN THIS ENVIRONMENT. IS THAT FAIR? DAN: YES.
DEFINITELY FAIR. AZURE GREW 30% YEAR-OVER-YEAR,
WHICH IS TREMENDOUS FOR MOST COMPANIES.
CONSIDERING MICROSOFT, IF THE SECOND -- IT WAS PRICED TO
PERFECTION EVEN ON THIS RECENT PULLBACK.
IT WAS AT THE LOW END OF GUIDANCE.
WE HEARD THE BUY SIDE WAS CLOSER TO 31-32.
INITIALLY, THE STOCK DID SELLOFF A PERCENT AS A KNEE-JERK
REACTION.

THEY DID AN INCREDIBLE JOB OF EXPLAINING EXACTLY WHERE THE WEAKNESS CAME FROM. EUROPE, GIVEN THE POLITICAL RISK AND THE ECONOMY, WAS A GREAT SPOT TO POINT OUT. MORE IMPORTANTLY, THIS IS WHEN THE STOCK REALLY STARTED TO REBOUND. IT IS A CAPACITY ISSUE, NOT A DEMAND PROBLEM. THEY DO NOT HAVE ENOUGH CHIPS TO SATISFY THE AI DEMAND. THE STOCK IS ALMOST BACK TO FLAT. ONE OTHER THING, WHEN YOU GO DEEPER, THAT MADE A LOT OF SENSE. THIS REALLY STOOD OUT -- AI DEMAND ACTUALLY HELPED GROW AZURE BY A PERCENT LAST QUARTER. YOU ARE SEEING AN ACCELERATION IN AI DEMAND THAT IS STARTING TO PROVIDE REAL ROI THAT I DO NOT SEE ENDING ANYTIME SOON. ED:

DANIEL O'REGAN.
MANAGING DIRECTOR OF MIZUHO AMERICA'S.
WE HAVE TO GO BACK TO NVIDIA. LOOK AT THE PERFORMANCE NVIDIA
SHARES IN THE MOMENT. CONSIDERING AMD AND MICROSOFT,
THIS IS A STOCK UP ALMOST 4%. THE CATALYST IS MORGAN STANLEY
HAS RAISED NVIDIA BACK TO BEING ITS TOPIC AFTER WHAT IT SEES AS
A SELLOFF. GIVEN AN ATTRACTIVE PORT OF ENTRY,
IT IMPACTS MARKETS MORE BROADLY. I THINK WE SHOULD KEEP AN EYE
ON THAT THROUGHOUT THE DAY. THIS IS BLOOMBERG. IT IS TIME FOR TALKING TECH.
SAMSUNG RAMPS UP ITS MEMORY CHIP PRODUCTION.
IT IS SET TO START MASS-PRODUCING ITS LATEST CHIPS
THIS YEAR AND EXPECTS TO CONTRIBUTE 60% OF HBM'S TOTAL
SALES. INTEL PLANS TO ELIMINATE

THOUSANDS OF JOBS.
THE CHIPMAKER IS SET TO ANNOUNCE THE JOB CUTS AS EARLY
AS NEXT WEEK, AS IT LOOKS TO REDUCE COSTS AND FUND AN
AMBITIOUS TURNAROUND. SOURCES ALSO TELL BLOOMBERG THE
BY DEMONSTRATION WILL EXEMPT CHIPMAKERS FROM JAPAN AND THE
NETHERLANDS FROM UPCOMING RESTRICTIONS TO CHINA, ADDING
THE PLANS ARE FLUID AND MY CHANGE.
I WANT TO GET TO THAT STORY. YOU LOOK AT SOME OF THE NAMES
IMPACTED. THIS IS A SIGNIFICANT PIECE OF
BLOOMBERG REPORTING. IAN: THERE IS A LOT OF REPORTING
GOING ON. IT IS AN UNCLEAR SITUATION
RIGHT NOW. THERE ARE MORE RULES COMING.
THERE WILL BE MORE PRESSURE PUT ON CHINA VIA THOSE RULES.
WHAT HAS BEEN IN FLUX IS SO

IMPACTFUL THAT WILL BE ON COMPANIES AROUND THE WORLD, WHETHER THE BY DEMONSTRATION WOULD TRY TO FORCE THE ALLIES TO FOLLOW SUIT -- WHETHER THE BIDEN ADMINISTRATION WOULD TRY TO FORCE ALLIES TO FOLLOW SUIT. THE RULES MIGHT NOT BE AS COMPREHENSIVE AS WE THOUGHT OR DUTCH OR JAPANESE INVESTORS WOULD HAVE FEARED. ED: LET'S TALK ABOUT THE INTEL STORY. IT IS A SIGNIFICANT REDUCTION IN HEADCOUNT. INTEL IS A COMPANY THAT HAS 110,000 STAFF AROUND THE WORLD. WHAT DO WE KNOW ABOUT THIS AND WHY IS IT SIGNIFICANT? IAN: THERE ARE A COUPLE OF THINGS AT WORK. INTEL HAS HAD SIGNIFICANT EROSION IN ITS REVENUE BASE. LOSING MARKET SHARE AND ITS PRODUCTS HAVE NOT BEEN AS STRONG.

WHAT IT IS TRYING TO DO IS TO TURN
IS TO SPEND A LOT OF MONEY ON NEW TECHNOLOGY TO GET BACK IN
THE GAME. BUT ALSO TO EXPAND ITS BUSINESS.
SOMETHING DOES NOT QUITE FIT. YOU HAVE A NEED FOR RESOURCES
AND YOU HAVE STAFF THAT ARE ESSENTIALLY IN PLACE TO SUPPORT
THE BIGGER BUSINESS. WHAT WE UNDERSTAND IS THAT
GOING ON AND COULD BE ANNOUNCED AS EARLY AS TOMORROW IS THEY
WILL HAVE TO GET RID OF SOME STAFF TO SAVE MONEY TO GIVE
THEM MONEY TO SPEND ON THESE EFFORTS. ED:
BLOOMBERG'S IAN KING OUT OF SAN FRANCISCO. THANK YOU.
COMING UP ON BLOOMBERG TECHNOLOGY,
WE WILL BE JOINED BY KUO ZHANG TO DISCUSS HOW ALIBABA IS
LEVERAGING THE PARIS OLYMPICS.

THAT IS NEXT.
THIS IS BLOOMBERG TECHNOLOGY. ED: AD HAS SURPASSED THE RECORD.
$1.25 BILLION FOR TOKYO'S GAMES. A SOURCE TOLD BLOOMBERG RATINGS
HAVE TRANSLATED INTO GREATER DEMAND FOR THE UNSOLD INVENTORY.
NBC BROUGHT INTO THE GAMES. PRIMETIME VIEWERSHIP HAS
AVERAGED 33.8 MILLION VIEWERS, UP 77% FROM TOKYO.
THE PARIS OLYMPICS IS NOT ALL ABOUT SPORTS.
IT IS ALSO ABOUT BUSINESS. THE CHINESE TECH GIANT ALIBABA
AND ALIBABA.COM IS ANNOUNCING A PARTNERSHIP WITH INTERNATIONAL
OLYMPIC COMMITTEE FOR AN INITIATIVE AIMING TO HELP
ATHLETES START THEIR OWN BUSINESS, BECOME ENTREPRENEURS.
IT IS CALLED SAME PLAYER, NEW GAME. LET'S BRING IN KUO ZHANG,
PRESIDENT OF ALIBABA.COM, WHO.

IS IN PARIS.
WHY MAKE THIS ARRANGEMENT WITH THE IOC? KUO: ALIBABA GROUP IS PARTNERED WITH
IOC AS A GLOBAL PARTNER SINCE 2017, SEVEN YEARS AGO. WE ARE WORKING WITH IOC FOR THE
NEW ATHLETES PROGRAM. WE MEET WITH MANY OF THE
ATHLETES. WE CAN FEEL THE SUCCESS FOR
ENTREPRENEURS AND ATHLETES SHARE THE SAME CHARACTERISTICS.
COMMON QUALITIES. PASSION TO RESILIENCE.
SELF-DISCIPLINE. PUSH THE BOUNDARY.
AND THEY HAVE A VERY CLEAR GOAL. THESE ARE THE CHARACTERISTICS
FOR THE SUCCESSFUL ENTREPRENEUR. WE SEE A LOT OF ENTREPRENEURS
ON ALIBABA.COM. ED: WE DO NOT HAVE MUCH TIME AND I
WANTED TO ASK YOU ABOUT THE OTHER INITIATIVE.
AI-ENHANCED E-COMMERCE SEARCH.

ALIBABA.COM IS A - WHY IS AI IMPORTANT? KUO: TODAY WE LAUNCHED A NEW PRODUCT. IT IS BIGGER THAN ALIBABA.COM ITSELF. PREVIOUSLY, SEARCHING IS PASSIVE MODE. YOU KEY IN THE KEYWORDS AND COME UP WITH LINKS. NOW, WE USED AI TECHNOLOGY TO EMPOWER THE SEARCH TO BE PROACTIVE. EXPERTISE OF THE HUMAN AND TECHNOLOGY WORKING TOGETHER. HELP FILTER THE SELECTION PRODUCT AND SUPPLIERS. WE CAN USE OUR SOLUTION TECHNOLOGY TO FULFILL THEIR DREAM. THE ATHLETES CAN USE THEIR EXPERTISE AND IDEAS IN THEIR INNOVATIONS AND USE TECHNOLOGY TO HELP THEM TO TRANSFORM. ED: KUO ZHANG, PRESIDENT OF ALIBABA.COM, JOINING US FROM PARIS. THANK YOU FOR BEING ON BLOOMBERG TECHNOLOGY.

THE CATALYST FOR NVIDIA BEING UP 12% IS MORGAN STANLEY MAKING ITS TOP CHIP ONCE AGAIN. AMD'S AI ACCELERATED - THE UPGRADE OF THE SALES FORECAST. IT IS A MARKET WHERE NVIDIA DOMINATES. MAYBE THERE IS UPSIDE. IF AMD IS SO POSITIVE ABOUT CONTINUED SPENDING NVIDIA GET SOME AS WELL. THERE ARE OTHER THINGS GOING ON IN THE MARKET. WE ARE KEEPING AN EYE ON MEDA, WHICH REPORTS LATER TODAY. IT IS UP 2.3% AHEAD OF THE EARNINGS. MAYBE THERE IS SOME READTHROUGH FROM META. ONE INVESTOR MADE A POINT THAT META TRADES AROUND 21 TIMES EARNINGS. MICROSOFT IS 31 TIMES FORWARD EARNINGS. THEY ARE DIFFERENT BEASTS. MAYBE YOU LOOK AT META DIFFERENTLY IN THIS ENVIRONMENT. THEY DO NOT HAVE A CLOUD.

BUSINESS.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
DO NOT FORGET AN INCREDIBLE EPISODE ON THE PODCAST. APPLE,
SPOTIFY, IHEART. FROM NEW YORK CITY THIS WEEK,
THIS IS BLOOMBERG TECHNOLOGY. ♪

AMD's AI Chip Sales Boost and Microsoft Azure's Slowing Growth | Bloomberg Technology

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

T-Mobile's Growth Strategies and Technology Investments

T-Mobile is experiencing organic growth in the industry, with a focus on gaining market share and providing the best value for customers.

The company is prioritizing fiber technology investment to expand its broadband services and collaborating with SpaceX to eliminate connectivity dead zones.

T-Mobile's strong second quarter is attributed to the significant growth of its data center business, driven by the increasing need for data infrastructure.

Microsoft's Role in the AI Accelerator Market

Microsoft is positioned as a leading partner in the data center and client businesses, with a focus on high memory and fast accelerators.

The company is anticipating a growing market for AI accelerators, with an emphasis on training and inference, and is working to address supply constraints.

Microsoft is also developing new products on an annual cadence and is optimistic about the PC market, especially AI PCs, expecting a strong second half of the year.

AMD's Positive Outlook on PC Market and Gaming Business

AMD anticipates a boost in the PC market and gaming business in the coming year.

The company expects a significant change in the gaming revenue with the next refresh cycle and emphasizes its strong partnerships with Microsoft and Sony.

AMD is also making progress in the enterprise server business, seeing new customer traction and opportunities in the AI market.

The company is confident in its engineering team and is acquiring a new AI company to enhance its talent pool.

Tesla's Position in the Autonomous Driving Industry

Tesla is not looking to acquire any of the mentioned companies, while Uber is likely to collaborate with them.

The companies are all lagging behind Tesla in developing software capabilities for autonomous driving.

Microsoft's slow growth indicates a long time horizon for monetization.

Pinterest's CEO attributes the Q3 revenue range to tough comps but expresses confidence in the company's sound fundamentals and consistent growth.

Pinterest has shifted from a browsing platform to one where users can take action, leading to accelerated user growth and a doubling of clicks to advertisers year on year.

The platform's user base is primarily composed of Gen Z, who not only shop on Pinterest but also curate their taste, influencing older generations, and the platform's positive environment has led to a decision not to accept political ads, prioritizing long-term benefit.

AI is a core competency for Pinterest, with a focus on increasing the relevancy of recommendations and improving ad targeting, leading to record levels of user growth and engagement.

Pinterest's AI Investment and User Engagement

Pinterest's investment in AI has led to significant margin expansion and high user engagement, driving ad spend and delivering a great return on investment for advertisers.

The company's unique signal on the platform provides valuable data to feed their AI, contributing to its success.

Microsoft's Meticulous Spending and Investor Reaction

Microsoft's CFO emphasized meticulous spending based on demand signals, with a focus on long-term investment in data centers and AI, reassuring investors about their capital stewardship.

Despite tremendous growth in Azure, Microsoft is facing pressure from investors to meet estimates in the current environment.

The Impact of AI Demand on Chip Manufacturers

Europe's political risk and economy were highlighted as the source of weakness in chip supply, leading to a rebound in stock.

The increasing demand for AI is causing a capacity issue for chip manufacturers, driving the stock almost back to its original position.

AI demand has not only helped grow Azure by a percentage last quarter but is also showing an acceleration that promises a continuing return on investment.

Alibaba's Initiatives at the Paris Olympics

Alibaba has partnered with the International Olympic Committee to help athletes become entrepreneurs, citing shared characteristics between athletes and successful business owners.

The company has also launched an AI-enhanced e-commerce search, aiming to empower athletes to use their expertise and ideas for innovation with the help of technology.

com, Kuo Zhang, discussed these initiatives in a recent interview from Paris.