DOJ's Proposal for Google's Breakup: Antitrust Developments

The DOJ is considering a historic breakup of Google due to its monopolistic dominance, impacting Alphabet's stock performance.

### Big Tech Under Scrutiny: DOJ's Potential Breakup of Google and Antitrust Challenges
* 📉 Shares of Alphabet fell by 1.6% as the DOJ considers a **historic breakup of Google** due to its **monopolistic dominance in online search**.
* 📝 The DOJ has begun the release phase, with an official proposal for Google's potential breakup expected on **November 20**.
* 📅 Key dates include a remedy trial set for **late April 2025**, with a decision anticipated by **August of the same year**.
* ⚖ Google is pushing back against the breakup, arguing that the DOJ's focus should be on **specific contracts** rather than **dismantling the company**.
* 🤖 The DOJ is concerned about Google's use of data for both search and AI products, suggesting that **illegal benefits in one area should not extend to the other**.
* 💼 New Jersey's Attorney General is leading a coalition of states suing TikTok for allegedly **misleading users about safety and targeting youth**, amidst a broader **youth mental health crisis**.
* 📈 The lawsuit against TikTok is distinct from previous actions against Meta, focusing on **consumer protection laws** and the impact of social media on **mental health**.
* 🌌 Meanwhile, Aetherflux, a new company, aims to **harness solar energy from space** using satellites and lasers, showcasing **innovative approaches to global energy challenges**.

>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM LOS ANGELES AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. CRACKING DOWN ON BIG TECH. THE DOJ CONSIDERING A HISTORIC BREAKUP OF GOOGLE. ED: MORE THAN A DOZEN U.S. STATES CONSIDERING LAWSUITS AGAINST TIKTOK. YOU WILL BE JOINED BY NEW JERSEY'S ATTORNEY GENERAL. CAROLINE: CITADEL, A CONVERSATION WITH THE CEO COMING UP. FIRST, LET'S GO TO OUR TOP STORY. SHARES OF ALPHABET ARE LOWER TODAY BY 1.6% AFTER THE DOJ IS WEIGHING A BREAKUP OF GOOGLE OVER ITS MONOPOLISTIC DOMINANCE OF ONLINE SEARCH. WE GO STRAIGHT TO THE REPORTER WHO HAS BEEN ALL OVER THIS.

LEAH, YOU REPORTED BACK IN AUGUST THAT THIS MIGHT BE A CONSIDERATION, THAT THE DOJ WOULD PUT THIS TO THE JUDGE. IT HAS MOVED ON FROM THAT REPORTING? LEAH: YES, NOW WE ARE GETTING INTO THE RELEASE PHASE. THE JUSTICE DEPARTMENT PUT ITS FIRST FILING IN. IT LAID OUT A FRAMEWORK OF VARIOUS THINGS IT IS THINKING ABOUT AS IT IS CRAFTING A REMEDY PROPOSAL. THEY ARE GOING TO HAVE AN OFFICIAL PROPOSAL THAT LAYS OUT EVERYTHING THAT THEY WANT GOOGLE TO DO ON NOVEMBER 20, BUT THIS WAS JUST SORT OF LIKE, HERE IS WHAT WE ARE THINKING. THESE ARE SOME OF THE OPTIONS. THE BIG ONE WAS THE BREAKUP. ED: LET'S GET INTO THE TIMELINE. YOU MENTIONED NOVEMBER 30.

WE WILL BRING ON THE SCREEN -- THE FIRST IS THE FARMING OF THE PROPOSALS. NEXT APRIL, WE WILL HAVE A TRIAL. BY AUGUST OF 2025, WE MIGHT GET SOME SORT OF DECISION. EXPLAIN ALL OF THAT, PLEASE, LEAH. LEAH: DOJ IS GOING TO PUT ITS FILING IN THAT SAYS THIS IS WHAT WE WANT, WHETHER IT IS A BREAKUP, DATA SHARING, ALL THOSE THINGS. GOOGLE GETS FACED CHANCE TO RESPOND. -- GETS A CHANCE TO RESPOND. THEY WILL DO MORE DISCOVERY -- INTERVIEWS WITH GOOGLE FOLKS, MORE DOCUMENTS, LEADING UP TO THE TWO-WEEK REMEDY TRIAL THAT WILL TAKE PLACE IN LATE APRIL. IN THAT, THEY ARE GOING TO HAVE WITNESSES TESTIFY BEFORE THE JUDGE ABOUT WHAT WOULD HAPPEN TO GOOGLE'S BUSINESS IF HE

TAKES ANY ACTIONS. HE HAS PROMISED HE WILL ISSUE A DECISION IN AUGUST OF NEXT YEAR. THAT OFFICIALLY WRAPS UP THE CASE AT THE TRIAL COURT AND THEN GOOGLE CAN START ITS APPEAL. THE APPEAL TAKES 18 MONTHS TO TWO YEARS, SO WE ARE LOOKING AT AUGUST FOR THE FIRST BIG DEADLINE, AND THEN WE WILL GO INTO THE APPEALS, AND MAYBE SOME OF THIS WOULD TAKE PLACE 18 MONTHS TO TWO YEARS FROM THEM. -- FROM THEN. CAROLINE: LET'S GO TO GOOGLE'S OWN RESPONSE, BECAUSE THE U.S. JUDGE IS SAYING THAT GOOGLE'S DISTRIBUTION AGREEMENTS FOR CLOSE A SUBSTANTIAL PORTION OF THE GENERAL SEARCH SERVICES MARKET AND IMPAIR RIVAL OPPORTUNITIES TO COMPETE. THAT IS THE JUDGE'S TAKE. WILL'S TAKE IS THAT THIS IS A RADICAL IDEA. LEAH:

GOOGLE SAID WHAT WE FOUND WAS ILLEGAL IS SPECIFIC CONTRACTS, SO DOJ SHOULD BE JUST LOOKING AT THOSE CONTRACTS. THEY SAY THESE THINGS GO BEYOND THOSE CONTRACTS. THEY ARE TALKING ABOUT BREAKING UP OUR COMPANY, WHICH IS NOT REALLY PART OF THE CASE, BECAUSE GOOGLE OWNS CHROME. IT IS PUSHING BACK ON THE BREAKUP IN PARTICULAR. THE OTHER THING THEY HAVE SAID IS THE JUSTICE DEPARTMENT SAYS THAT AI IS A BIG ISSUE HERE BECAUSE A LOT OF THE DATA THAT GOOGLE USES TO BUILD ITS SEARCH RESULTS IS THE SAME DATA THAT IS USED TO BUILD ITS AI PRODUCTS. THE JUSTICE DEPARTMENT SAYS GOOGLE SHOULD NOT BENEFIT FROM THE ILLEGAL BENEFIT IN THE SEARCH AND AI MARKET. IT WANTS TO PUT LIMITS ON THAT. GOOGLE SAYS, WAIT A SECOND.

WE'RE TALKING ABOUT SEARCH. THAT IS NOT AI, THIS OTHER DIFFERENT FIELD. THAT WILL BE A BIG ISSUE FOR THE JUDGE TO -- TO DECIDE NEXT YEAR. ED: A LATE NIGHT FOR YOU IN DCA, AND AN EARLY MORNING. IMPORTANT REPORTING, BUT THE STOCK IS ON THE MOVE. WILL CEO SEND OUR PICHAI SAT DOWN WITH DAVID RUBENSTEIN FOR HIS SHOW. HERE IS A REMINDER ABOUT WHAT HE HAD TO SAY ABOUT THE MOUNTING LEGAL WORRIES AND ANTITRUST SUITS FROM THE DOJ. SUNDAR: WE DISAGREE WITH THE RULING BUT WE ARE STILL IN THE MIDDLE OF THE REMEDIES PHASE AND WE WILL APPEAL. THIS PROCESS WILL LIKELY TAKE MANY YEARS. I AM CONFIDENT, GIVEN THAT WE ARE FOCUSED ON INNOVATING,

USING TECHNOLOGY, WE WILL DO WELL IN THE LONG RUN. CAROLINE: YOU -- ED: YOU CAN SEE THAT FULL INTERVIEW TONIGHT ON THE DAVID RUBENSTEIN SHOW. CAROLINE: LET'S DIG INTO ANTITRUST, THE RISK TO BIG TECH. A PRIVATE WEALTH ADVISOR IS WITH US. THE STOCK IS DOWN FOR ALPHABET. IT IS THE BIGGEST MOVE SINCE OCTOBER 7. IT DOES NOT FEEL LIKE MANY PEOPLE ARE PRICING IN A BREAKUP TO THIS EXTENT RIGHT NOW. IS IT A RISK, ANTITRUST ISSUES? >> ANTITRUST ISSUES IN GENERAL MAKE FOR A VERY EYE-CATCHING HEADLINE. CERTAINLY, IT IS WHAT ALL OF US ARE TALKING ABOUT RIGHT NOW. WE SEE THIS PLAY OUT EVERY SEVERAL YEARS IN THE TECHNOLOGY SPACE. MY FEELING IS IT IS SUCH A LONG TIMELINE AND THERE ARE SO MANY

IF'S WE CAN SPECULATE ON. LOOKING AT FUNDAMENTALS AND TRYING TO NAVIGATE THIS, I REALLY DON'T THINK THERE IS ANYTHING WE SHOULD BE THINKING ABOUT DOING DIFFERENTLY AS WE APPROACH OUR INVESTMENT PORTFOLIOS. ED: HOLD ON. THE STOCK IS DOWN 1.6% IN A MARKET THAT IS UP. WE SHOWED THAT TIMELINE. YOU GET TO AUGUST OF NEXT YEAR, AND A HYPOTHETICAL -- A JUDGE ORDERS THE BREAKUP. THEY WILL COUNTER IN COURT, BUT LET'S SAY IT HAPPENS. HOW DO YOU PREPARE FOR THAT? >> YOU PREPARE FOR IT LIKE YOU PREPARE FOR ANYTHING ELSE, IN MY OPINION. NATURE EVERYTHING IN THE INVESTMENT PORTFOLIO LOOKS OK UNDER THE HOOD. REGARDLESS OF ANY INDIVIDUAL SECURITY, YOU WANT TO MAKE SURE

YOU DO NOT HAVE TOO MUCH EXPOSURE IN ANY INDIVIDUAL SECURITY, WHERE IF THE WORST-CASE SCENARIO DOES PLAY OUT, IT COULD HAVE REPARABLE CONSEQUENCES ON YOUR FINANCIAL FUTURE OR YOUR WEALTH. OTHER THAN THAT, WITH OUR FIRM, WE TAKE A REALLY HOLISTIC AND DISCIPLINED APPROACH. WHILE THIS IS A VERY EYE-CATCHING HEADLINE TODAY, SOMETHING WE ARE GOING TO BE TALKING ABOUT FOR THE NEXT COUPLE OF DAYS, IF NOT THE NEXT FEW WEEKS, IT IS GOING TO BE A LONG PROCESS. TRYING TO DO ANYTHING WITH POSITIONING OTHER THAN MAKING SURE THAT YOUR POSITIONS ARE NOT OVERWEIGHTED OR UNDERWEIGHTED -- I DON'T SEE ANYTHING ELSE THAT REQUIRES MATERIAL ATTENTION RIGHT NOW TODAY. ED: YOU USE THE PHRASE SINGLE SECURITY, BUT BASICALLY MOST OF

THE MAIN CAP TECH NAMES HAVE SOME FORM OF ANTITRUST SCRUTINY IN MULTIPLE JURISDICTIONS. IN AGGREGATE, HOW MUCH ANXIETY IS IT IF YOU THINK OF IT THROUGH THAT LENS? >> IF YOU ARE DIVERSIFIED, IT IS NOT THAT MUCH ANXIETY. THE WORST CASE SCENARIO IS WHAT YOU SEE IN SOME SHIFTING LEADERSHIP WITHIN THE SPECIALIZED TECHNOLOGY SECTOR. WE SEE THIS TIME AND TIME AGAIN OVER MY LAST 27 YEARS. WE HAVE SEEN IT AND PHARMA, ENERGY TECHNOLOGY. GENERALLY SPEAKING, WE DO NOT SEE A LOT OF MOVEMENT MATERIALLY WITHIN THE MARKETS OR SOMETIMES WITHIN THE SECTORS AS A RESULT OF THESE ANTITRUST HEADLINES. BUT TIME WILL TELL. CAROLINE: THE ANXIETY FOR THE MARKET IN

MANY WAYS IS WHAT REVENUE -- WHAT POSSIBILITY LOOKS LIKE RIGHT NOW FOR AI. YOU HAVE BEEN WRITING A LOT ON THIS, JASON, AND WE GET ANOTHER GOOD SIGN. TMC'S NUMBERS COME IN STRONG. WHAT ARE YOU GETTING IN TERMS OF A GUT IN TERMS OF THE VALUATION OF THESE MICRO-CAPS? JASON: MY GUT CHECK IS THAT VALUATIONS ARE STRETCHED. MARKETS DO THINGS WE DON'T EXPECT ALL THE TIME, BUT IF I LOOK AT THE VALUATIONS AND I LOOK AT WHAT IN MY OPINION IS A BEST CASE SCENARIO PLAYING OUT IN TERMS OF EXPECTATIONS ON FUTURE EARNINGS, IT IS TOUGH TO SEE THESE LEVELS GO MATERIALLY HIGHER WITHOUT BREAKOUTS. THAT SAID, WE HAVE HAD THAT. WE MAY SEE THAT MOVING FORWARD, BUT I WOULD TAKE IT BACK AGAIN TO MAKING SURE, REGARDLESS OF

WHAT HAPPENS -- LOOK UNDER THE HOOD OF THE PORTFOLIO. I SURE YOU ARE NOT OVERWEIGHTED IN ANY INDIVIDUAL NAMES OR ONE PARTICULAR SECTOR. CAROLINE: WHAT ABOUT THE MACRO PICTURE? IF YOU ARE THINKING ABOUT ANYONE SECTOR, IT HAS BEEN IMPOSSIBLE NOT TO BE OVERWEIGHT AND TO BE HEAVILY WEIGHTED TOWARD TECHNOLOGY BECAUSE OF THE VALUATIONS OF TECHNOLOGIES. HOW DO YOU REBALANCE WHEN YOU ARE THINKING ABOUT WHAT INTEREST RATES ARE UP TO? JASON: WHEN WE ARE REBALANCING, WE WANT TO -- I THINK INVESTORS HAVE GOTTEN AWAY FROM THAT A LOT OVER THE LAST YEAR OR TWO, AND THAT IS PART OF THE REASON WHY WE HAVE PROBABLY SEEN THIS EXCESSIVE LEADERSHIP IN THESE MEGA CAP TECHNOLOGY STOCKS, BUT IN TERMS OF OTHER SECTORS I

MIGHT LIKE IN THE MARKETS RIGHT NOW, I'VE SAID THIS FOR THE LAST SIX MONTHS. I REALLY LIKE RETAIL IT -- UTILITIES. IT IS SIMPLY BECAUSE THEY WERE SO UNDERVALUED. THE VALUATION IS DELICIOUS. I THINK THEY ARE STILL ATTRACTIVE, AND THERE IS STILL ROOM FOR GROWTH. I LIKE HEALTH CARE BECAUSE IT HAS ACTUALLY UNDERPERFORMED, AND I THINK IT MIGHT BE DUE FOR SOME MEAN REVERSION. TO YOUR POINT WITH INTEREST RATES, IF AND WHEN THEY CONTINUE TO COME DOWN, THAT SETS THE CONVERSATION FOR A MORE ACTIVE MERGERS AND ACQUISITION MARKET. IT IS GOOD FOR THE HEALTH CARE MARKET, PARTICULARLY BIOTECH. ED: YOU MENTIONED UTILITIES. ARE YOU INTERESTED IN THIS GROUNDBREAKING NEW FIELD CALLED NUCLEAR ENERGY THAT COULD BE POWERING ALL OF THE AI

INFRASTRUCTURE INVESTMENT THAT WE WILL SEE? JASON: AT THIS POINT, I WOULD SAY NO, NOT IN ANY ABOVE AVERAGE FASHION. WE ARE CONSIDERING ALL OF THE DATA POINTS, BUT THERE IS NOT ANY PARTICULAR OVERLY -- OVER EXCITEMENT, FOR LACK OF A BETTER WAY TO PUT IT, AT THIS TIME, CONCERNING THAT. ED: COMING UP ON THE SHOW, DEEP MINE SCIENTISTS ARE NOW NOBEL PRIZE WINNERS FOR THEIR RESEARCH, USING ARTIFICIAL INTELLIGENCE. A FASCINATING CONVERSATION TO COME. THIS IS BLOOMBERG TECHNOLOGY. ED: TWO GOOGLE DEEP MINE SCIENTISTS ARE NOW NOBEL PRIZE WINNERS, SHARING THE 2024 NOBEL PRIZE IN CHEMISTRY WITH U.S. PROFESSORS FOR THEIR BREAKTHROUGH RESEARCH INTO PROTEINS THAT WERE DEVELOPED

THROUGH AI. BLOOMBERG'S MARK BERGEN COINS US FROM LONDON. I HAVE NEVER SEEN YOU SO EXCITED ABOUT THE INTERSECTION OF SCIENCE AND TECHNOLOGY. WHAT HAVE YOU BEEN WRITING ABOUT? MARK: TRAUMA DISPLAY EXCITED. THIS IS EARLIER THAN WE EXPECTED, BUT WE KNEW IT WAS SOMETHING THE COFOUNDER AND CEO OF DEEP MIND -- ONE OF THE AWARD WINNERS THIS MORNING -- WE HAVE REPORTED THIS IS SOMETHING HE HAS TOLD COLLEAGUES HAS BEEN AN AMBITION OF HIS. OUR COLLEAGUE FROM THE BLOOMBERG BUSINESS SIDE -- HE TOLD PEOPLE HE WANTED THE COMPANY TO WIN AT LEAST THREE TO FIVE OVER THE NEXT FEW YEARS. PERHAPS THIS IS THE FIRST OF MANY. CAROLINE: LET'S GO INTO JOHN JUMPER AND

DENNIS HASSABIS. IS THIS ALPHA FOLD WORK WHAT PUSHED THEM TO THE FIRST OF HOPEFULLY MANY NOBEL PRIZES? MARK: I THINK SO. THIS IS MY UNDERSTANDING. THE PRIORITY HAS BEEN USING AI FOR SCIENCE. IT HAS CERTAINLY BEEN OVERSHADOWED BY CHATGPT AND GENERATIVE AI, AND WE HAVE DONE SOME REPORTING ABOUT HOW SOME OF THIS WORK HAS BEEN OVERSHADOWED INSIDE OF GOOGLE AND DEEP MIND, WHERE THEY HAVE FOR COMMERCIAL REASONS SHIFTED A LOT OF RESEARCH PRIORITIES TOWARD GENERATIVE AI, BUT THEY HAVE A TEAM WORKING ON ALPHA FOLD, TRYING TO COMMERCIALIZE THIS WITH ISOMORPHIC LABS, THAT IS RUN IN SPARE TIME. THEY DID A PRESS CONFERENCE THIS AFTERNOON ABOUT THIS PRIZE. ONE OF THE THINGS THEY TALKED ABOUT WAS THE CONTINUED WORK

AROUND DRUG DISCOVERY. ED: JEFFREY HINTON WON THE PRIZE FOR PHYSICS, HIS WORK ON NEURAL NETS. HE THREW A BIT OF SHADE. LISTEN TO THIS. JEFFREY: I WAS PARTICULARLY FORTUNATE TO HAVE MANY VERY CLEVER STUDENTS, MUCH CLEVERER THAN ME, WHO MADE THINGS WORK. THEY HAVE GONE ON TO DO GREAT THINGS, AND I AM PARTICULARLY PROUD OF THE FACT THAT ONE OF MY STUDENTS FIRED SAM ALTMAN. -- SAM ALTMAN. ED: YOU'VE GOT A FREE PASS. YOUR COMMENT ON THAT? MARK: I GUESS IT IS A GREAT LUXURY TO BE ONE OF THE MOST RESPECTED SCIENTISTS IN YOUR FIELD AND HAVE PRETTY MUCH CARTE BLANCHE TO SAY ANYTHING. BUT HE WAS AT GOOGLE. HE HAS A FASCINATING HISTORY. HE LEFT GOOGLE AND TALKED ABOUT

-- HE GAVE A WARNING ABOUT SOME OF THE DANGERS AND RISKS OF AI. MY SENSE IS -- I HAVE NOT SPOKEN TO JEFF HINTON ABOUT THIS. BUT AS A SCIENTIST AND A RESEARCHER, HE SEES SOME AND SCIENTISTS AND SOME AS EXECUTIVES AND CEOs. GOOGLE OBVIOUSLY WANTS TO MARRY BOTH OF THOSE WORLDS. THERE IS ALWAYS GOING TO BE TENSION BETWEEN THOSE TWO, OBVIOUSLY. CAROLINE: AI REALLY CLEANING UP ON THESE NOBEL PRIZES AND JEFF HINTON MENTIONING ABOUT ELIAS AND HIS ROLE IN THE SAM ALTMAN OUSTER. WE THANK YOU SO MUCH. ALSO IN THE AI SPACE, THAT'S TALK ABOUT SAM ALTMAN'S OPENAI BEING ACCUSED BY ELON MUSK OF HARASSMENT AS THE STARTUP WAS A PLAN TO SHIFT TO A FULL PROFIT.

BUSINESS MODEL. MUSK CLAIMED THAT OPENAI COFOUNDERS MANIPULATED HIM INTO MANIPULATING HIM IN THE STARTUP -- INVESTING IN THE STARTUP, WHICH WAS INITIALLY A NONPROFIT. BACK AND FORTH YEAR -- THERE HAVE BEEN OTHER LEGAL RATTLES BETWEEN ELON MUSK AND OPENAI, AND OPENAI NOW SAYING THEY ARE HARASSING US. >> OPENAI AND MUSK ARE AT IT AGAIN. THIS TIME, OPENAI IS LASHING BACK AT MUSK'S LAWSUIT. THEY SAY THIS IS HARASSMENT. WE HAVE BEEN ACCUSED OF -- OF CORRUPTION AND RACKETEERING HERE. WHAT THEY ARE SEEING IS THAT ACTUALLY MUSK IS DOING THIS TO GAIN COMPETITIVE ADVANTAGE WITH THIS AI, SO THEY ARE SAYING WE ARE BEING HARASSED. THEY HAVE ASKED A JUDGE TO

THROW OUT THIS LAWSUIT. THIS CONTINUES. WE HAVE TO SEE WHAT HAPPENS IN TERMS OF WHETHER THIS SUIT SURVIVES IN COURT OR NOT. ED: OPENAI IS ACCUSING ELON MUSK OF HARASSMENT, AND ELON MUSK IS SAYING THAT THIS IS A TEXTBOOK TALE OF ALL TRUISM VERSUS GREED. THE BIT I AM STRUGGLING WITH IS, WHAT IS ELON MUSK TRYING TO ACHIEVE? WHAT IS HIS END GOAL IN THE SUITS THAT HE IS FILING AGAINST OPENAI? >> WHAT HE SAYS IS HE FEELS LIKE HE HAS BEEN DECEIVED. HIS LAWSUIT TALKED ABOUT DECEIT OF SHAKESPEAREAN PROPORTIONS. HE APPEARS TO BE HURT HERE AND SAYS I HAVE BEEN DECEIVED. MANIPULATED ME INTO INVESTING HERE. HE STARTED OFF WITH THIS

FOUNDING MISSION OF BEING THIS COMPANY THAT WOULD BENEFIT HUMAN GOOD, AND HERE YOU ARE SORT OF SHIFTING TO THIS FOR-PROFIT MODEL. IT DEFINITELY SEEMS LIKE HE APPEARS HURT IN SOME OF THE WORDS THAT ARE BEING USED IN THE LAWSUIT. WHAT OPENAI SAYS IS, YOU ARE JUST USING LEGAL WARFARE TO HURT US AND BENEFIT YOUR OWN COMPANY, BECAUSE THIS NEW LAWSUIT, WHICH WAS FILED IN AUGUST, OPENAI SAYS, IS ADDING ON SOME EXTRA -- MORE INTENSE CLAIMS SUCH AS RACKETEERING AND CORRUPTION. SO OPENAI SAYS YOU ARE JUST DOING THIS FOR YOUR OWN BENEFIT AND TRYING TO HURT US, AND USING THE COURT SYSTEM TO BASICALLY GET BACK AT US. ED: THANK YOU VERY MUCH. ANOTHER OPENAI -- THE FIRM IS BUILDING A TEAM IN SINGAPORE TO

SUPPORT DEMAND FOR ITS AI OFFERINGS IN ASIA. THE OFFICE WILL BE OPEN BY THE END OF THE YEAR AND WILL BE THE HUB FOR THE REGION. LAST WEEK, OPENAI ANNOUNCED PLANS FOR A NEW YORK OFFICE IN MANHATTAN. CAROLINE: COMING UP, WE ARE JOINED BY TURING CAPITAL'S PRIYA SAIPRASAD. ED: TIME NOW FOR AI IN ACTION. LET'S BRING IN THE COFOUNDER AND GENERAL PARTNER AT THE NEWLY FOUNDED VENTURE FIRM TURING CAPITAL, FOR HER TAKE ON HOW TO IDENTIFY THE BEST INDUSTRIES FOR AI INVESTMENT. A LOT OF MY WORK HAS BEEN LOOKING AT THE WIDE RANGE OF, LET'S SAY, TECH SECTOR STARK DIVISIONS WHERE AI IS HAVING AN IMPACT. IT COULD BE ANYWHERE FROM SOFTWARE TO HARDWARE, INDUSTRIAL, EV, ROBOTICS, HEALTH CARE.

EVERYONE AND ANYTHING IS SLAPPING A STICKER ON THEMSELVES SAYING WE ARE SOMEHOW AI ADJACENT. THAT COULD BE AN OPPORTUNITY FOR YOU. YOU SET YOURSELVES UP TO INVEST. WHERE DO YOU START? PRIYA: THANK YOU FOR MENTIONING THAT. OUR THESIS IS TO PARTNER WITH ENTREPRENEURS WHO ARE BUILDING AI ENABLED AND AI ADJACENT SOFTWARE THAT REALLY SOLVES REAL WORLD PROBLEMS AND ENHANCES PRODUCTIVITY ACROSS DIFFERENT INDUSTRIES. BUT HOW DO YOU ACTUALLY CHOOSE WHICH INDUSTRIES THAT ARE SO RIPE FOR AI? WE TYPICALLY LOOK FOR INDUSTRIES THAT ARE GENERAL LAGGARDS IN THAT INITIAL WAVE OF DIGITAL TRANSPORTATION. IN A LOT OF CASES, THEY STILL RELY ON PEN, PAPER, AND EXCEL.

WE THINK THOSE ARE THE OPPORTUNITIES FOR THE MOST ADVANCEMENT -- AT LEAST THE LOW HANGING FRUIT THAT AI CAN INITIALLY TACKLE. CAROLINE: LOOKING AT SOME OF THE STARTUPS YOU HAVE ALREADY INVESTED IN, WE HAVE YOUR PORTFOLIO UP NOW. PISIS -- PIXIS IS MARKETING. A FINANCIAL SERVICES -- A CAR DEALERSHIP -- WHY DO YOU FEEL THESE AREAS ARE RIPE FOR DISRUPTION FROM ARTIFICIAL INTELLIGENCE? PRIYA: THAT IS A GREAT QUESTION. WE TYPICALLY USE A FRAMEWORK WHEN WE THINK OF WHETHER A PARTICULAR VERTICAL OR INDUSTRY IS RIPE FOR AI TRANSFORMATION. WE LOOK FOR A LARGE TOTAL ADDRESSABLE MARKET. AND AN ACTUAL PAIN POINT THAT IS REALLY EXPERIENCED IN THAT MARKET. WE PREFER RELATIVELY OLD-SCHOOL INDUSTRIES WHO STILL RELY ON

PEN, PAPER, AND EXCEL FOR THE MOST PART, BUT ARE FORCED TO DEAL HEAD-ON WITH THE TAILWINDS FROM AI ADOPTION AND ARE TEMPTED TO REMAIN COMPETITIVE IN THE INDUSTRY. WE LOOK FOR WHAT IS DELIVERED FROM THE PRODUCT TO THE END-USER IN THAT MARKET, CREATING A STRONG PROPENSITY TO PAY. I SAY THE BEST OPPORTUNITIES IN AI OFTEN SEEMED NICHE TO THE INDUSTRY OUTSIDER, BUT ARE SORT OF LIFE-CHANGING TO THE END USER. AS YOU POINTED OUT, INVESTMENT IN NUMA IS A GREAT SAMPLE OF ALL OF THIS. IT IS AN AI COMMUNICATION PLATFORM THAT IS PURPOSE BUILT FOR SERVICE PROFESSIONALS AT CAR DEALERSHIPS TO USE. ED: REALLY QUICK -- NOT JUST IMMEDIATE ROI, THAT I FIND THAT COMPANIES ARE SHRINKING.

YOU CAN FIND A FIVE OR 10 PERSON OPERATION THAT IS DOING WELL. WOULD YOU INVEST THERE? PRIYA: A 5% OR 10% COMPANY, A STARTUP? ED: WITH SERIOUS MONEY, YEAH. PRIYA: ABSOLUTELY. WE TYPICALLY INVEST IN SERIES B COMPANIES, SO COMPANIES WITH THE EARLY INFLECTION GROWTH POINT WHERE YOU HAVE THREE TO $10 MILLION IN REVENUES. IT COULD BECOME AN ACE 15 EMPLOYEES, 20 EMPLOYEES. CAROLINE: WE HAVE TO WRAP IT UP, I'M AFRAID. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN LOS ANGELES. ED: I'M ED LUDLOW IN SAN FRANCISCO. WE ARE MODESTLY HIGHER. CPI DATA IS WHAT WE ARE ALL

WAITING FOR. DOING WELL, THE NAMES YOU EXPECT. THAT MAKES ALPHABET'S DECLINE ALL THE MORE PRONOUNCED. YOU HAVE GONE BIG ON THAT STORY IN THE SHOW. A PRELIMINARY PROPOSAL FOR THE DOJ TO PROPOSE THE BREAKUP OF GOOGLE. IT WILL BE OVER A NUMBER OF MONTHS THAT THE PROCESS PLAYS OUT. ANOTHER NAME I AM LOOKING AT IS TESLA. EARLIER TODAY, I WROTE A STORY WITH MY COLLEAGUES THAT ONE OF THE THINGS ELON MUSK WILL TALK ABOUT AT WE ROBOT IS THE PATHWAY TO BE USED FOR A SEMI-TRUCK. WHEN YOU LOOK AT A 10:00 A.M. EASTERN TIME MARK, THE STOCK WENT FROM NEGATIVE TO POSITIVE TERRITORY. I THINK THERE IS A LOT OF INTEREST ABOUT THE FUTURE OF SEMITRUCKS, BUT WE ARE WAITING.

ARE WE GOING TO GET A PURPOSE-BUILT RUBBER TAXI SOME DESCRIPTION. THAT IS THE MARKET, IF YOU ARE JUST JOINING US. LET'S TURN OUR ATTENTION TO NEW YORK. THE GLOBAL MACRO CONFERENCE IS UNDERWAY. SONALI BASAK IS WITH THE CITADEL CEO. >> WE ARE ALREADY AHEAD IN MANY OF THESE INSTANCES. I THINK WE WILL SEE AT LEAST FOR THIS NEXT PERIOD INCREASED ADOPTION OF USING AI AS PRODUCTIVITY TOOLS INTERNALLY. WE ARE STILL SOME DISTANCE AWAY, FROM A TECHNOLOGICAL PERSPECTIVE, BUT ALSO IMPORTANTLY FROM A REGULATION AND LEGAL PERSPECTIVE THAT YOU WANT FURTHER CLARITY, AND PERHAPS A FEW CASES WILL SURPASS OUR REGULAR TORY SYSTEM IN TERMS OF WHAT IS GOING TO BE OK, WHAT IS GOING TO BE

ACCEPTABLE. IT WILL BE ALL THE WAY THROUGH TO THE END-USER. WE ARE STILL SOME DISTANCE FROM THAT. SONALI: I WANT TO BREAK DOWN THOSE LIMITATIONS, WHAT IT WILL UNLOCK. ABOUT A YEAR AGO, MANY FINANCIAL COMPANIES WOULD SAY WE ARE HESITANT TO WORK WITH A THIRD PARTY BECAUSE OF THE LIABILITY, BECAUSE OF THE RISKS. WE HAVE SEEN MORE FINANCIAL SERVICES COMPANIES WORK WITH AI, AND WHAT HAVE YOU. ARE YOU WORKING WITH OPENAI AND OTHER PLAYERS AS WELL? >> WE PARTNER WITH MOST OF THE TOP PROVIDERS. I THINK FROM OUR PERSPECTIVE, OPENAI, THEY HAVE BEEN VALUABLE PARTNERS. THE OTHER PART IS IT IS CRUCIALLY IMPORTANT FOR US TO BE ON THE CUTTING-EDGE. EVEN IF NOT EVERY RELEASE EVERY WEEK IS GOING TO LEAD TO REAL

CHANGES FOR US INTERNALLY. WE WANT TO BE EXAMINING THAT. WE WANT TO STAY UP-TO-DATE. WHAT IS BECOMING POSSIBLE? THAT IS MOVING EVERY WEEK. SONALI: WHAT IS BECOMING POSSIBLE? WHAT DOES WORKING WITH OPENAI DO FOR YOU THAT YOU HAVE NOT BEEN ABLE TO DO BEFORE? >> I THINK SOME OF THE -- THERE ARE A LOT OF EXAMPLES. I THINK SOME OF THE KEY WORKFLOWS THAT ARE VIEWED AS UNIQUELY POSSIBLE IF YOU HAVE A CERTAIN TYPE OF TALENT ARE NOW BEING TRANSFERRED FROM A HIGH-VALUE HUMAN, A LABOR-INTENSIVE PART OF THE WORKFLOW, TO BEING HEAVILY AUTOMATED. EVEN THINGS LIKE DEBUGGING, THINGS LIKE REVIEWS OF CODE. THIS CONSUMED A VERY LARGE AMOUNT OF HIGH-VALUE RESOURCES.

TODAY, THAT IS BEING SOMEWHAT REPLACED. IN OUR MODEL BUILDING, I'M NOT GOING TO GET INTO A LEVEL OF DETAIL. THERE ARE SOME PARTS OF THE WORKFLOW THAT COST YOU A LOT OF RESEARCH OR TIME AND ARE ALSO BECOMING MUCH MORE AUTOMATED. AGAIN, I COME BACK FROM THE PERSPECTIVE OF LESS REVOLUTIONARY CHANGE FROM THE PRODUCT OFFERING PERSPECTIVE, BUT MORE OF A CHANGE FROM A PRODUCTIVITY PERSPECTIVE. IF I CAN TAKE THIS GROUP OF 30 OF THE BRIGHTEST, SMARTEST, MOST INNOVATIVE RESEARCHERS IN A CAPITAL MARKET AND GET A 20% PRODUCT, THAT IS LIKE FIRING SIX NATIONAL MATH EMPIRICAL ANALYSTS. AND I WILL DO THAT EVERY DAY. SONALI: WHAT DOES THIS MEAN IN TERMS OF YOUR PERFORMANCE AS A COMPANY? IT HAS BEEN RUMORED FOREVER

THAT CITADEL SECURITIES WOULD TAKE AN IPO AT SOME JUNCTURE. IS THIS HELPING YOU GROW YOUR MARGINS MUCH FASTER INTO A MOMENT LIKE THAT? >> SO THERE ARE TWO THINGS. FIRST OF ALL, WE WILL MAKE SURE BLOOMBERG IS WELL-INFORMED IF WE EVER SERIOUSLY CONSIDER AN IPO. SONALI: ARE YOU SERIOUSLY CONSIDERING ONE? [LAUGHTER] >> YOU WILL READ IT ON BLOOMBERG FIRST, I'M SURE. PUTTING THAT ASIDE, I LIKE HOW YOU SLIPPED THAT IN THERE. PUTTING THAT ASIDE, I THINK IT GOES BOTH WAYS. I THINK FOR COMPANIES, I WOULD SAY THERE IS A RISK FOR FIRMS TO NOT STAY WITH THE SPEED OF INNOVATION. IT IS NOT NECESSARILY GENERATIVE AI.

IT IS THAT COMPANIES ARE SPENDING TIME AND RESOURCES AND FIGURING OUT HOW THEY CAN LEVERAGE MORE AUTOMATION AND TECHNOLOGY, INCREASING THEIR PRODUCTIVITY TO STAY ON THAT FRONTIER. AND THE FIRMS THAT CANNOT KEEP UP IN DOING THAT -- NOT ONLY WILL THEY NOT WIN, THEY WILL LOSE. AND I THINK THE POWER FIRMS IN EVERY FIELD, INCLUDING OUR FIELD, ARE SPENDING A REALLY HIGH QUALITY TIME, VERY INTENTIONAL, THINKING ABOUT WHERE THEY ARE GOING TO ALLOCATE THE RESOURCES TO KEEP UP WITH THAT INNOVATION. AT THE SAME TIME, I ALSO BELIEVE FIRMS LIKE OURSELVES, ON THE OTHER END OF THIS, WILL WIN BASED ON OUR UNDERSTANDING OF THE MARKET. BASED ON OUR UNDERSTANDING YET AGAIN -- WHAT ARE THE MOST IMPORTANT AND MOST VALUABLE PROBLEMS THAT OUR CLIENTS WANT

TO SOLVE AND THAT THE MARKET WANTS TO SOLVE? WE ARE BUILDING BETTER TOOLS. BUT THOSE BETTER TOOLS WILL NOT BE NEARLY GOOD ENOUGH UNLESS WE USE THEM TO SOLVE THE MOST VALUABLE PROBLEMS, AND WE DO NEED HUMANS, CAROLINE: GOING BACK TO THAT -- CAROLINE: ALL THINGS AI WITH SONALI BASAK. ED: LET'S GET MORE NEWS IN TALKING TECH. FIRST UP, SOCIAL MEDIA PLATFORM X HAS BEEN ORDERED TO RELEASE OLD DATA FROM 2022 ON FAKE USERS THAT ELON MUSK TRIED TO USE TO BACK OUT OF THE DEAL TO BUY TWITTER. A DELAWARE JUDGE HAS ORDERED X TO PROVIDE SEVERAL DOCUMENTS AS WELL AS SOME SLACK MESSAGES. SHARES OF TSMC UPPED HER -- UP AFTER A RISE IN QUARTERLY REVENUE.

THEY REPORTED SEPTEMBER QUARTER SALES OF $23.6 BILLION, COOLING ANALYST CONCERNS THAT AI SPENDING IS TAPERING OFF. THE NVIDIA CEO SAYS THE FUTURE OF AI WILL BE IN SERVICES THAT CAN REASON. HE SAYS NEXGEN TOOLS WILL BE ABLE TO RESPOND TO QUERIES BY SEARCHING AND REFLECTING ON THEIR OWN CONCLUSIONS, BUT PREFACES THAT IT ALL REQUIRES THE COST OF COMPUTING TO COME DOWN FIRST. CAROLINE: COMING UP, THE SEARCH FOR MORE ENERGY -- MAY BE IN SPACE. WE SPEAK WITH THE COFOUNDER OF ROBINHOOD ABOUT HIS NEW COMPANY. YOU DO NOT WANT TO MISS IT. THIS IS BLOOMBERG. CAROLINE: TIKTOK HAS BEEN SUED BY OVER A DOZEN STATES FOR ALLEGEDLY DECEIVING USERS ABOUT ITS

SAFETY FOR CHILDREN AND USING ADDICTIVE FEATURES TO KEEP ON THE PLATFORM LONGER. ATTORNEY GENERAL, WHY PICK THIS PARTICULAR FIGHT WITH TIKTOK? IT IS ALREADY BEING SUED THE FEDS FOR CHILD PRIVACY ISSUES. IT MAY BE BANNED IN THE UNITED STATES. TELL US THE UNDERLYING REASON FOR PURSUING THIS. >> WE KNOW WE ARE FACING A YOUTH MENTAL HEALTH CRISIS IN THIS COUNTRY, AND UNFORTUNATELY, NEW JERSEY IS NO EXCEPTION. AS WE HAVE SHOWN IN A NUMBER OF ACTIONS, WE KNOW THAT SOCIAL MEDIA COMPANIES HAVE KNOWINGLY TARGETED OUR YOUTH IN WAYS THAT HAVE DAMAGED THEIR MENTAL HEALTH AND CAUSED THEM REAL HARM. TO MAKE MATTERS WORSE, THEY HAVE TOLD THE PUBLIC THAT THESE PRODUCTS ARE SAFE WHEN THEY KNOW THEY ARE NOT.

THE LOSSES THAT NEW JERSEY AND SEVERAL OTHER STATES FILED YESTERDAY ARE MEANINGFULLY DIFFERENT THAN THE LAWSUIT YOU MENTIONED. THE DEPARTMENT OF JUSTICE FILED. IT IS A VIOLATION OF STATE CONSUMER LAWS FOR MISLEADING THE PUBLIC ABOUT THE SAFETY OF THEIR PRODUCTS AND DELIBERATELY TREATING OUR YOUNGEST RESIDENTS AS NOTHING MORE THAN COMMODITIES. CAROLINE: LET'S TALK ABOUT WHAT IS MATERIALLY DIFFERENT FROM OCTOBER OF LAST YEAR, WHEN NEW JERSEY AND OTHER STATES ALSO SUED MENTO, THE PARENT COMPANY OF INSTAGRAM AND FACEBOOK, AGAIN TO PRODUCTIVE -- TO PROTECT CHILDREN'S MENTAL HEALTH. HOW ARE THE ACTIONS DIFFERENT? WHAT DO YOU SEE IN PARTICULAR? >> LEGALLY, THEY ARE DISTINCT LAWSUITS.

INVESTIGATIONS HAVE BEEN underway for some time. INVESTIGATIONS TAKE TIME. AS A GENERAL MATTER, WE KNOW THAT SOCIAL MEDIA COMPANIES LIKE META AND TIKTOK HAVE TARGETED OUR YOUTH, HAVE DELIBERATELY TAKEN STEPS TO KEEP OUR YOUTH ON THEIR PLATFORMS FOR A LONG TIME, HAVE IMPLEMENTED BODY IMAGE FEATURES THAT ALLOW YOURSELF TO PUT YOURSELF ON TIKTOK AS IF YOU HAD PLASTIC SURGERY OR EXTENSIVE MAKEUP. THAT CAUSES REAL HARM TO KIDS' MENTAL HEALTH. THAT HAS COST US MORE FEAR AND MENTAL HEALTH CRISES, PARTICULARLY AMONG YOUNG GIRLS. LAWSUITS, YOU SEE SIMILAR PATTERNS ACROSS THEM. THEY ARE DISTINCT LAWSUITS. META, BECAUSE THE DEPARTMENT OF JUSTICE HAVE NOT FILED A

FEDERAL CLAIM ABOUT CHILDREN'S PRIVACY -- WE FILED A CLAIM UNDER THAT LAW. WE DID NOT NEED TO FILE A FEDERAL CLAIM. THERE ARE SOME SIMILAR EDDIES ACROSS THE COMPLAINTS. -- SIMILARITIES ACROSS THE COMPLAINTS. ED: FOR MANY OF YOUR CONSTITUENTS, THAT IS A FAIR QUESTION. WHAT IS THE POINT? THERE IS A FEDERAL SUIT AGAINST TIKTOK. YOU HAVE CHOSEN A LONG PATH WITH THIS SPECIFIC INITIATIVE. WHY DO IT IF THERE ARE ALL THOSE OTHERS ALREADY IN PLACE, SOME OF WHICH HAVE ANALOGOUS GOALS WITH WHAT YOU ARE TRYING TO ACHIEVE? >> THE FEDERAL LAWSUIT COVERS DIFFERENT CONTENT. HERE, WE ARE TALKING ABOUT DELIBERATELY MISLEADING THE PUBLIC ABOUT THE SAFETY OF THEIR PRODUCTS, ABOUT TELLING

PEOPLE THEIR PRODUCT IS SAFE WHEN THEY KNOW IT IS NOT. THE UNITED STATES SURGEON GENERAL HAS SAID IT SHOULD HAVE A WARNING LABEL ON IT. AND KIDS ARE USING TIKTOK IN PARTICULAR FOR HOURS AND HOURS A DAY, WHEN WE KNOW JUST A FEW HOURS OF TIKTOK A DAY CAN CAUSE SIGNIFICANT MENTAL HEALTH HARMS TO OUR KIDS. I AM A STATE'S ATTORNEY GENERAL, THE CHIEF LAW-ENFORCEMENT OFFICER FOR 9.3 MILLION PEOPLE. MY JOB IS TO KEEP THEM SAFE. A COMPANY PEDDLING A PRODUCT TARGETING OUR YOUNGEST RESIDENTS, TREATING THEM AS NOTHING MORE THAN DOLLAR SIGNS AND PUTTING THEIR PROFIT AHEAD OF MENTAL HEALTH, I HAVE AN OBLIGATION TO STEP IN AND PROTECT THEM. THAT IS WHAT THIS LAWSUIT AND THE LAWSUIT AGAINST META IS.

DOING. ED: IF THIS GOES BEFORE A JURY, HOW WILL YOU SHOW THAT WHAT TIKTOK DOES IS INTENTIONAL, THAT IT IS MALICIOUS IN YOUR ACCUSATIONS THAT THEY ARE PROFITING OFF YOUNG USERS? >> I'M NOT GOING TO SPEAK TO WHAT WE WOULD INITIALLY SHOW AT A TRIAL, BUT WE LAY OUT CLEARLY WHAT TIKTOK NEW IN THE HARMS THEIR PRODUCTS HAVE CAUSED, INCLUDING THE RESULT THAT WE HAVE ESSENTIALLY COMPULSIVE USERS OF TIKTOK PRODUCTS, AGES 13 TO 17 THROUGHOUT OUR STATE AND THROUGHOUT THE COUNTRY. WE KNOW AT THE SAME TIME WE ARE EXPERIENCING A MASSIVE SPIKE IN MENTAL HEALTH CHALLENGES FOR OUR YOUTH -- SUICIDAL IDEATION, DEPRESSION UP AT HISTORIC LEVELS. WE ARE CONFIDENT IN THE CASE WE HAVE BROUGHT AGAINST TIKTOK.

WE WOULD NOT BRING A LAWSUIT LIKE THIS IF WE DID NOT FEEL VERY CONFIDENT IN OUR CASE, AND IF IT WERE NOT PREPARED TO TAKE ON WHAT IS, AS WITH META, ONE OF THE LARGEST COMPANIES IN THE WORLD. MY MESSAGE IS SIMPLE. WE ARE READY FOR THAT FIGHT. ED: NEW JERSEY ATTORNEY GENERAL, THANK YOU FOR YOUR TIME. NEWS FROM EUROPEAN FINTECH GIANT, KLANA. A MEMBER OF THE BOARD OF DIRECTORS SAID HIS COUNTERPARTS VOTED TO OUST HIM AFTER HE CHALLENGED GOVERNANCE DECISIONS INCLUDING A BONUS PLAN HE CLAIMED COULD HAND THE CEO UP TO $35 BILLION IN THE COMING YEARS. THAT IS ACCORDING TO A LETTER TO SHAREHOLDERS SEEN BY BLOOMBERG. IT IS THE LATEST SIGN THAT TENSIONS ARE SIMMERING AHEAD OF

A POSSIBLE IPO EXPECTED NEXT YEAR. HAVE GOT A LOT MORE TO COME ON THE PROGRAM. STAY WITH US. THAT IS ONLY ON BLOOMBERG TELEVISION. CONTEXT CHANGES EVERYTHING. ED: THE ANSWER TO THE WORLD'S ENERGY PROBLEMS MAY BE IN SPACE. THERE IS A NEW COMPANY WITH THE AIMS OF HARNESSING SOLAR ENERGY USING LASERS AND LOW-EARTH ORBIT SATELLITES IN ORDER TO DELIVER RENEWABLE POWER GLOBALLY. CEO BAIJU BHATT JOINS US FROM SAN FRANCISCO. IT IS OUT OF SCIENCE FICTION BUT YOU CAN KIND OF SEE IT, SO EXPLAIN THE BASICS OF TECHNOLOGY -- HOW THIS WOULD WORK. BAIJU: THANKS FOR HAVING ME ON. THE COMPANY IS AETHERFLUX AND IT TAKES SOLAR POWER, THIS OLD

DEPARTMENT OF ENERGY AND MASS IDEA, AND MAKE IT A THING. COLLECT SOLAR POWER IN ORBIT. BY DOING SO, YOU ARE ABLE TO BEAM IT DOWN TO LOCATIONS VIRTUALLY GLOBALLY. AND BY DOING SO, ADDRESS A LOT OF THE LIMITATIONS OF ENERGY INTERMITTENCY. ED: TO ADDRESS WHAT THE AUDIENCE MIGHT BE WONDERING, I KNOW YOU AS ONE OF THE COFOUNDERS OF ROBINHOOD. YOUR BACKGROUND IS IN PHYSICS. YOU HAVE A FAMILY TIED TO NASA, SO HOW DID THIS COMPANY COME ABOUT? BAIJU: MY LOVE OF PHYSICS AND THE SPACE IN THE STREET GOES BACK REALLY LONG. I GREW UP WITH MY DAD STUDYING PHYSICS AND THE UNITED STATES. HE WORKED AT NASA WHEN I WAS A KID. WHEN I STUDIED PHYSICS AND MATH AT STANFORD -- I HAVE KIND OF

HAD A LOVE OF THE SPACE INDUSTRY FROM CHILDHOOD. THROUGH BUILDING ROBINHOOD, THE PASSION FOR LOOKING FOR COMMERCIAL OPPORTUNITIES IN SPACE -- HOW COULD WE MAKE SPACE TECHNOLOGIES FOR PEOPLE ON EARTH? THAT HAS KIND OF BEEN A LOVE OF MINE FOR A LONG TIME. AND IN PARTICULAR, ASKING THE QUESTION ABOUT HOW CAN WE BRING NATIONAL RESOURCES FROM SPACE DOWN TO EARTH -- AND I THINK ENERGY IS ONE OF THE NATURAL CHOICES FOR THAT. CAROLINE: BRINGING IT DOWN FROM SPACE TO EARTH -- YOU SAID BEAM IT DOWN. GET INTO THE NITTY-GRITTY. HOW DOES ONE BEAM IT DOWN? BAIJU: THE WAY THAT WE ARE GOING TO BE TRANSFERRING POWER FROM SPACE TO EARTH IS ACTUALLY USING A CONSTELLATION OF SATELLITES IN LOW-EARTH ORBIT, AND EACH ONE

COLLECTS POWER AND USES INFRARED LASERS TO FIND A GROUND STATION AND ACTUALLY TRANSMIT POWER DOWN TO IT. SO IN THE SAME WAY THAT YOU COLLECT SOLAR POWER WITH -- SOLAR POWER WITH TRADITIONAL PANELS, WITH THIS, YOU WILL HAVE A GROUND STATION THAT FORMS A CONNECTION WITH THE SATELLITE AND RECEIVES POWER FROM SPACE. SO WHERE COMPANIES LIKE SPACEX HAVE LAUNCHED A CONSTELLATION OF COMMUNICATION SATELLITES, THIS WOULD BE A CONSTELLATION OF ENERGY SATELLITES. CAROLINE: YOU ARE FINANCIALLY BACKING THIS, OBVIOUSLY WITH THE HELP OF A VERY SUCCESSFUL STARTUP YOU WERE CO-CEO OF PREVIOUSLY. WHAT IS THE FUNDING THAT WILL BE NECESSARY? WHO WILL YOU BRING ON BOARD? HOW MUCH WILL THIS COST? BAIJU: RIGHT NOW, THE COMPANY IS

FUNDED BY ME. AS WE GROW THE COMPANY, WE ARE TALKING ABOUT BUILDING A LARGE NUMBER OF SATELLITES, SO THAT WILL TAKE MORE CAPITAL. ONE OF THE OPPORTUNITIES WE ARE LOOKING AT IN THE NEAR TERM IS GOING TO BE HOW CAN WE SOLVE PROBLEMS THAT ARE REAL ON PLANET EARTH TODAY, AND THE STUFF WE ARE FOCUSING ON IS HOW DO WE DELIVER POWER TO PLACES THAT ARE EITHER CONTESTED OR DIFFICULT TO REACH. THANK MILITARY APPLICATIONS LIKE FORWARD DEPLOYED BASES OR THINGS LIKE REMOTE MINING APPLICATIONS. ED: IT SOUNDS AMAZING BUT ARE WE TALKING THEORETICAL PHYSICS OR ARE WE TALKING APPLIED PHYSICS? BAIJU: THIS WAS ONE OF THE CORE IDEAS BEHIND THIS APPROACH. WE VIEW THIS AS PRIMARILY AN ENGINEERING AND ECONOMICS

PROBLEM. NOT A HARD SCIENCE PROBLEM. WE ARE NOT LOOKING TO MAKE A BREAKTHROUGH IN SCIENCE. HOW DO WE TECHNOLOGIES THAT EXIST TODAY OR OTHER INDUSTRIES AND USE THOSE TECHNOLOGIES TO CREATE SOMETHING THAT CAN HAPPEN TODAY? CAROLINE: YOU WILL NEED -- ED: YOU WILL NEED A LAUNCH PROVIDER TO PUT THIS INTO ORBIT. BAIJU: WE'RE STILL IN THE EARLY STAGES. WE ARE TALKING TO SPACEX, AS YOU MENTIONED. WE ARE TARGETING A LAUNCH OF OUR FIRST MISSION, WHICH WILL AIM TO DEMONSTRATE THIS CAPABILITY, Q4 OF NEXT YEAR. CAROLINE: BAIJU BHATT, WAIT TO HAVE TIME WITH HIM. I'M JUST ENVISAGING LASERS BEAMING DOWN FROM SPACE. INFRARED. WE APPRECIATE IT. THANK YOU FOR EXPLAINING.

ED: TOMORROW, BLOOMBERG TECHNOLOGY IS LIVE FROM LOS ANGELES FOR BLOOMBERG SCREEN TIME. YOU DO NOT WANT TO MISS THAT. A STUNNING LINEUP OF GUESTS. PRETTY STUNNING LINEUP OF GUESTS IN TODAY'S SHOW. RECAPPING ON THE PRODUCT -- THE PODCAST, YOU KNOW EXACTLY WHERE TO FIND IT ONLINE. THE TEAM IS OUT IN L.A. RIGHT NOW. A FEW BIG DAYS OF SHOWS TO COME. THIS IS BLOOMBERG TECHNOLOGY. ♪

DOJ Weighs Breaking Up Google | 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

The DOJ is considering a historic breakup of Google, with shares of Alphabet dropping 1.

The DOJ's first filing has been submitted, outlining potential remedies, with an official proposal due on November 20.

The timeline includes a trial in April 2025 and a decision from the judge by August 2025, while Google is pushing back against the breakup and the DOJ's broader claims.

Navigating Investment Portfolios Amidst Market Scrutiny

The stock is down despite a rising market, and a potential breakup order could pose challenges.

A diversified investment approach is key to managing anxiety from antitrust scrutiny in tech.

The speaker emphasizes the importance of rebalancing portfolios and highlights retail, utilities, and healthcare as attractive sectors for growth.

Two Google DeepMind scientists have won the 2024 Nobel Prize in Chemistry for their groundbreaking research on proteins developed through artificial intelligence.

The co-founder and CEO of DeepMind had ambitious goals for the company, aiming for multiple Nobel wins in the coming years.

The ongoing tension between AI research and commercial priorities at Google and DeepMind has been a notable theme, with a team working on AlphaFold and drug discovery in the background.

Elon Musk's Lawsuit Against OpenAI and AI Investment Opportunities

Elon Musk is suing OpenAI, claiming he was deceived and manipulated into investing, while OpenAI accuses him of using legal warfare for his own benefit.

The lawsuit has intensified with claims of racketeering and corruption.

Meanwhile, OpenAI is expanding its presence in Asia and New York, and Turing Capital is focusing on investing in AI-enabled software to disrupt traditional industries.

Investing in Startups and the Impact of AI

Investors are looking at 5-10 person startups with early inflection growth, typically generating $3-$10 million in revenue.

The conversation also highlights the pronounced decline of Alphabet and Tesla's potential in the semi-truck market.

The CEO of Citadel emphasizes the increased adoption of AI as productivity tools and the importance of partnering with top providers like OpenAI for automation and workflow efficiency.

Citadel Securities and the Impact of Innovation

Citadel Securities is considering an IPO but emphasizes the importance of staying innovative and allocating resources effectively.

The company believes that firms failing to keep up with innovation will lose out, while those that understand and address valuable market problems will win.

Meanwhile, social media platform X has been ordered to release old data on fake users, and TikTok is facing a lawsuit from several states for allegedly deceiving users about its safety for children.

Investigations into Social Media Companies' Impact on Youth

Investigations are ongoing into social media companies like Meta and TikTok for their harmful impact on youth mental health.

These companies have been accused of deliberately keeping young users on their platforms and implementing features that promote unrealistic body images.

The lawsuits aim to hold these companies accountable for misleading the public about the safety of their products and prioritizing profit over the well-being of young users.

The company aims to collect solar power in low-earth orbit using a constellation of satellites, then beam it down to Earth using infrared lasers.

The founder, Baiju Bhatt, has a long-standing passion for physics and space, with a background tied to NASA.

The project is currently self-funded, with plans to address real-world problems on Earth, such as providing power to contested or remote locations.