>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. COMING UP, INTEL GETS TO WORK, STRIKING A CHIP MAKING DEAL WITH AMAZON AFTER POSTPONING EXPANSION PLANS IN GERMANY. ED: PLUS, ELON MUSK DONATING MILLION DOLLARS TO BACK THE G.O.P. IN CONGRESSIONAL RACES. CAROLINE: AND MICROSOFT AWARDS ITS SHAREHOLDERS, BOOSTING ITS DIVIDEND AND UNVEILING A $60 BILLION BUYBACK PLAN, AS WE HEAR FROM CO-FOUNDER BILL GATES AS HE TACKLES A DIFFERENT $3

TRILLION PROBLEM. BUT FIRST, LET’S CHECK IN ON THESE MARKETS. THE S&P 500 HIT NEW INTRADAY HIGHS. WE’RE STILL WELL BEHIND THE NASDAQ, ABOUT 5% OFF OF THEM. BUT WE MANAGED TO PUSH HIGHER ON THE DAY. WE’RE SEEING A GOLDILOCKS READING ONCE AGAIN WHEN IT COMES TO ECONOMIC DATA. RETAIL SALES SURPRISING TO THE UPSIDE FOR AUGUST, BUT STILL THE MARKET WAITS FOR TOMORROW, THE FED, AND WHETHER WE GET A 50 BASIS POINT CUT. ED, YOU’RE WATCHING MICROS. ED: THREE BIG NAMES MOVING HIGHER. AMAZON’S C.E.O. HAS TOLD STAFF THEY HAVE TO GO BACK TO THE OFFICE, FIVE DAYS A WEEK STARTING IN JANUARY, EXCEPT FOR EXTENUATING CIRCUMSTANCES. EVERYONE IS TALKING ABOUT THAT.

MICROSOFT BOOSTING ITS DIVIDEND 10%, A NEW $60 BILLION SHARE BUYBACK PLAN IS PUSHING THE STOCK HIGHER. AND THEN INTEL, A LONG LIST OF NEWS AND ANNOUNCEMENTS THAT SHOWS THE TURNAROUND PLAN IS MAKING. THEY WILL MANUFACTURE A CHIP FOR AMAZON AWS. THEY WILL SEPARATE OUT THE FOUNDRY BUSINESS TO SERVE CUSTOMERS. THEY WILL PULL BACK PLANTS IN EUROPE. THAT’S A LONG LIST. CAROLINE: IT IS, AND WE GET INTO IT WITH IAN KING. THERE IS THE POSITIVE, THE DEAL TO FABRICATE FOR AMAZON. HOW IMPORTANT IS THIS, IAN? IAN: THEY NEEDED A WIN, A BIG-NAME CUSTOMER TO SAY, HEY, YEAH, WE CAN USE THAT STUFF. HOW MATERIAL THIS PARTICULAR TYPE OF CHIP IS, HOW BIG A DEAL

THIS INDIVIDUAL IS ANOTHER QUESTION. REALLY, I SPOKE TO PAT AHEAD OF THE ANNOUNCEMENT, AND HE SAID, LOOK, I DON’T NEED ONE BIG CUSTOMER, I NEED LOTS OF CUSTOMERS. REALLY, THAT’S THE PERSPECTIVE FOR THAT PARTICULAR ANNOUNCEMENT. ED: THIS IS AN IMPORTANT START. WE’LL SHOW WHAT PAT TOLD ON YOU THAT PHONE CALL AND SCREEN IN A SECOND. IT’S A FABRIC CHIP. WHAT IS A FABRIC CHIP, AND WHY IS IT SIGNIFICANT THAT INTEL HAS BEEN CHOSEN TO MAKE IT? IAN: THIS IS AN INTEGRAL PART OF A DATA CENTER. IT LINKS OTHER CHIPS TOGETHER. IT’S NOT THE KIND OF THING YOU HAVE MILLIONS AND MILL OVER OF, BUT IT’S VERY IMPORTANT, AND YOU WANT IT TO BE MADE ON THE BEST POSSIBLE TECHNOLOGY. THE FACT THAT AMAZON, WHICH IS

ONE OF THE, IF NOT THE LEADING DATA CENTER OPERATOR IN THE WORLD, HAS DECIDED TO USE INTEL. THAT’S AN AFFIRMATION THAT INTEL HAS SOMETHING THAT IT CAN USE AND HELPS. CAROLINE: YOU MENTIONED HE NEEDS LOTS AND LOTS OF CUSTOMERS, BUT THEY’RE NOT GOING TO BE EUROPE-BASED FOR THE TIME BEING. HOW OBSESSING IS THIS ULTIMATELY FOR GERMANY AND POLAND TODAY? IAN: MY CUSTOMERS IN EUROPE WON’T BE BUILDING CHIPS IN GERMANY. REMEMBER, THEY HAVE A PLAN IN IRELAND, WHICH THEY SAID IS GOING TO BE THE CENTER OF THEIR OPERATIONS IN EUROPE. IN TERMS OF WHAT THIS MEANS FOR THE ACTUAL EUROPEAN INVESTMENT IN SEMICONDUCTORS, IT’S CLEARLY A SETBACK. EVERYBODY HAS BEEN HOPING THAT

INTEL WOULD RIDE TO THE RESCUE HERE IN THE UNITED STATES, BUT ALSO EUROPE IS PUSHING THIS AS A PUBLIC POLICY. ANYTHING THAT DELAYS THAT, ANYTHING THAT RAISES THE POSSIBILITY THAT IT WON’T HAPPEN IS OBVIOUSLY NOT GOOD. ED: LET ME SHOW YOU THIS CHART ON THE BLOOMBERG TERMINAL. IT SHOWS US GOING BACK TO 2020, INTEL HAS ONLY HAD THREE QUARTERS WHERE SALES HAVE GROWN. WHAT DID YOU LEARN ON YOUR PHONE CALL THAT SUGGESTS THIS LIST OF ACTIONS WILL CHANGE THAT CHART AND THAT AT THE TOP LINE THEY WILL START TO SEE SOME GROWTH? IAN: WHAT I SAID TO HIM WAS, PAT, DO YOU HAVE ENOUGH MONEY TO KEEP THIS THING GOING, RIGHT? YOU KNOW, EVERYBODY APPROVES OF THE PLAN, EVERYBODY APPROVES OF WHAT YOU SET OUT TO DO.

BUT THEY ARE WORRIED THAT YOU DON’T HAVE ENOUGH MONEY TO DO THAT. AND HIS ANSWER WAS, WELL, HAS KIND OF SAVED ME FROM MORE MONEY TO HELP ME KEEP THINGS GOING. I FEEL LIKE I GOT THE WORST OF THE INVESTMENT PERIOD BEHIND ME, AND NOW WE’RE IN A POSITION THAT OUR TECHNOLOGY AND WHAT WE CAN OFFER TO BEGIN TO START TO BRING IN THOSE ORDERS THAT TURN THINGS AROUND. CAROLINE: IAN KING ALWAYS BRINGING US THE IMPORTANT CONVERSATIONS, THANK YOU. NOW LET’S BRING IN JORDAN KLINE TO CONTINUE THAT CONVERSATION. TECH MEDIA ANALYST, YOUR TAKE ON ALL OF THIS, JORDAN? YOU SAID THIS MORNING, YOU HIGHLIGHT THE PAINFUL REALITY FOR INTEL, IS THAT IN ONE WEEK ALONE, A COMPANY SUCH AS BROADCOM WILL ADD TWICE THE

MARKET CAPITALIZATION OF AN INTEL. HOW ARE YOU THINKING ABOUT THE NEWS COMING FROM WHAT WAS THE KEY CHIP MANUFACTURER OF 10 YEARS AGO? JORDAN: THANKS FOR HAVING ME. I WOULD AGREE WITH IAN’S SUBMISSION THAT THIS IS AN -- SUMMATION THIS IS AN IMPORTANT BIT OF NEWS. INTEL NEEDED TO HELP THE STOCK AND SENTIMENT. SO I THINK ON ONE SIDE, IT’S AT LEAST AN AFFIRMATION THAT, YES, THEY HAVE THIS FOUNDRY BUSINESS. BUT BASICALLY IT’S NOT, WE DON’T REALLY KNOW ENOUGH ON THE VOLUME AND THE TIMING OF WHEN IT WOULD ACTUALLY DRIVE REVENUES FOR THEM, AND I THINK NOW THE STAGE IS SET FOR THEM TO HOPEFULLY GO OUT AND START ADDING MORE CUSTOMERS TO THE MIX, WHETHER THAT’S THE BIGGEST AND BEST WOULD BE NVIDIA, BUT

THEY COULD GET OTHERS AS WELL. AND THAT’S GOING TO BE A VERY STEEP HILL TO CLIMB, BUT THEY GOT TO START SOMEWHERE. AND THAT’S WHAT TODAY WAS. CAROLINE: BIG AND IT’S BEST, NVIDIA. ARE INVESTORS STILL FEELING THAT THAT’S WHERE THEY SHOULD BE ALLOCATING THE CHIPS MORE BROADLY, CHIP MAKING WHERE SHE SHOULD BE PUTTING MONEY IN THIS MARKET? JORDAN: THAT’S A GOOD QUESTION. I THINK PEOPLE ARE MIXED ON HOW MUCH MORE EXPOSURE TO SEMICONDUCTORS THEY WANT AND NEED AT THIS TIME. THE GROUP, SEMICONDUCTORS THAT IS, IS EXTREMELY SENTIMENT-DRIVEN. SO WHEN IT’S PERFORMING WELL, IT’S GOT THE MOMENTUM, PEOPLE ARE GENERALLY VERY HAPPY TO RIDE THE WAVE. AND THAT’S WHAT YOU SAW ALL

FIRST HALF OF 2024. IT WAS LIKE A FEAR OF MISSING OUT, LED BY NVIDIA. AS SOON AS WE HIT THE HIGHS IN THE FIRST PART OF JULY AND THE GROUP SOLD OFF, I THINK INVESTOR ACCEPTABILITY SHIFTED. PEOPLE WERE WORRIED THIS GROUP IS AHEAD OF FUNDAMENTALS, THE VALUATIONS WERE STRETCHED, AND IT WAS TIME TO LOOK OUTSIDE OF SEMIS TO AREAS LIKE SOFTWARE OR LARGE CAP INTERNET. AND THAT’S KIND OF WHERE WE ARE NOW. I WOULD SAY LAST THING IS THAT THE INVESTOR FEEDBACK IN SEMIS IS QUITE MIXED. EVEN THOUGH THE GROUP IS STILL UP A LOT THIS YEAR AND THE STOCKS ACT RELATIVELY WELL, NOT A LOT OF THEM ARE MAKING NEW HIGHS, AND THE FUNDAMENTALS, MEANING WHAT THESE COMPANIES ARE SAYING, PARTICULARLY

OUTSIDE OF NVIDIA AND G.P.U.’S FORAY, IS ACTUALLY NOT IMPROVING. IN SOME INSTANCES, IT’S DETERIORATING, LIKE THE AUTO AND MEMORY SECTOR. ED: JORDAN, WHAT DID THE INTEL STORY TELL YOU ABOUT THIS INVESTMENT CYCLE AND THROUGH PAT’S LENS, THOSE POTENTIAL CUSTOMERS AND WHERE THEY MIGHT BE GOING. JORDAN: WELL, IT TELLS ME A COUPLE OF THINGS. IT TELLS ME THAT, ONE, THESE LARGE CLOUD HYPERSCALE CUSTOMERS LIKE AMAZON, META, GOOGLE, FACEBOOK, SORRY, YOU KNOW, THESE LARGE CLOUD CUSTOMERS ARE VERY INTERESTING IN DESIGNING THEIR CUSTOM CHIPS. AS YOU POINT OUT EARLIER, THIS IS MORE OF A FABRIC NETWORKING CHIP. BUT KEEP IN MIND, AMAZON IS VERY BIG AT BUILDING AND

DESIGNING THEIR OWN CHIPS FOR TRAINING AND INFERENCING, AS OPPOSED TO RELYING TOO MUCH ON NVIDIA. I THINK THAT’S GOING TO CONTINUE. ALL THESE BIG CLOUD COMPANIES WITH LARGE CAP EX SPENDING BUDGET WILL SEEK TO DO AS MUCH AS THEY CAN INTERNALLY WITH THE HELP OF OTHER LEADING DESIGN COMPANIES, LIKE BROADCOM, MARVEL, MAYBE INTEL, AND OTHERS. IT ALSO SHOWS THAT THERE’S REALLY NO END IN SIGHT HERE. I THINK THAT THEY’RE GOING TO LOOK TO DIVERSIFY, IF THEY CAN, BEYOND JUST BUILDING ALL THESE CHIPS WITH TAIWAN SEMI, WHO’S THE WORLD’S LEADING FOUNDRY. BUT THEY DON’T WANT TO BE TOO RELIANT ON THEM OR GIVE T.S.M. SO MUCH LEVERAGE THAT THEY CAN KEEP RAISING PRICES.

SO THEY KIND OF WANT TO KEEP THE INDUSTRY BALANCED AND HONEST, SO TO SPEAK, AND THAT WOULD BE TO INTEL’S ADVANTAGE IF THEY CAN SHOW AND PROVE THEY CAN EXECUTE AT THESE VERY ADVANCED, LEADING-EDGE NOTES. ED: I DON’T KNOW WHAT YOU’RE DOING ON WEDNESDAY AFTERNOON, BUT HERE WE’LL BE FOCUSING ON THE NEXT FOMC DECISION. YOU’RE SOMEBODY WHOSE DESK IS JUST EVERYDAY FLYING WITH TECHNOLOGY NEWS. HUE DO YOU AND ALL THE PEOPLE WHO PHONE YOU TOMORROW AT 5:00 A.M. THINK ABOUT THE FED TOMORROW? JORDAN: HALF OF THEM, MIKE LICE, JUST WANT IT BEHIND US SO WE CAN MOVE ON AND FOCUS ON FUNDAMENTALS AS OPPOSED TO THE

FED AND THE MACRO. I TEND TO THINK THIS ONE, YOU KNOW, IS ONE OF THE MORE IMPORTANT FED DECISIONS AND ANNOUNCEMENTS THAT WE’VE HAD SOME TIME, BUT IT ALSO FEELS A LITTLE BIT OVERHYPED IN TERMS OF, ARE WE REALLY, IS THE MARKET REALLY GOING TO CHANGE DRAMATICALLY, WHETHER IT’S 25 OR 50 BASIS POINTS? ARE INSTITUTIONAL INVESTORS AND BIG MUTUAL FUND MANAGERS GOING TO DRAMATICALLY CHANGE THE MAKEUP OF THEIR PORTFOLIO BASED ON 25 VERSUS 50? I DON’T THINK SO. I THINK THEY’RE ALREADY OF THE VIEW THAT WHETHER IT’S 25 OR 50, THE FED IS GOING TO CONTINUE TO PROBABLY ERR ON THE SIDE OF WANTING TO EASE AS OPPOSED TO KEEP RATES HIGH. WITH THAT BACK DROP, AS LONG AS

WE CAN BELIEVE IN A SOFT LANDING, WHICH I THINK MOST INVESTORS DO. THEY’RE GOING TO PROBABLY GOING TO STAY IN EQUITIES, AND THEY’RE PROBABLY GOING TO CONTINUE TO LOOK FOR GROWTH, AND THAT’S GOING TO FAVOR KEY PARTS OF TECH. BOTTOM LINE, WHEN THE DUST SETTLES IN A WEEK, THE FUNDAMENTALS AND THE BACKDROP FOR TECH STILL REMAIN PRETTY FAVORABLE. CAROLINE: DOES IT STILL FAVOR THE MOST VALUABLE COMPANIES? I THINK OF MICROSOFT TODAY, ONCE AGAIN, HANDING MONEY BACK IN TERMS OF BUYBACKS PROMISED, DIVIDENDS GIVEN. BUT IT’S SO VALUABLE ALREADY, DO THE SENTIMENTS STICK WITH IT? JORDAN: OH, YEAH, I DEFINITELY THINK THAT THERE’S NO DETERIORATION

OR WEAKENING IN POSITIVE SENTIMENT FOR THESE MAG7, PARTICULARLY NAMES LIKE MICROSOFT, NVIDIA, AMAZON, AND META. THE COMPANIES THAT ARE PERCEIVED TO BE THE LEADERS IN BOTH CLOUD AND A.I. EVEN APPLE, I MEAN, IT’S DOWN THE LAST FEW DAYS, BUT TO BE HONEST IF A.I. ON THE SMARTPHONE IS GOING TO WORK, THEY’RE GOING TO BE LEADING THE CHARGE. AND I JUST DON’T THINK YOU CAN GET THAT EXPOSURE, THAT POTENTIAL GROWTH IN OTHER AREAS OF TECH, AND I ACTUALLY PROBABLY NOT IN OTHER AREAS OF THE MARKET. THE DEBATE IS GOING TO BE WHAT DO YOU PAY FOR IT? THAT’S, YOU KNOW, HARD TO DETERMINE. IT’S MORE OF AN ART FORM THAN A SCIENCE. BUT AS LONG AS RATES ARE COMING

DOWN AND ECONOMIES, YOU KNOW, IT’S NOT GRIPING TO A HALT, I TEND TO THINK PEOPLE WILL PAY UP FOR GROWTH AND THAT FAVORS THESE LARGE MEG I CAN’T CAPS AS OPPOSED TO THE SMALLER COMPANIES THAT ARE GOING TO HAVE TO SEE IF THE ECONOMY HOLDS UP OR NOT. ED: JORDAN KLEIN. THANK YOU. CAROLINE: STARTING TOMORROW, UBER WILL BEGIN AUTOMATICALLY VERIFYING PASSENGERS, CHECKING THEIR ACCOUNT INFORMATION AGAINST THIRD-PARTY IDENTITY DATABASES. IT’S IN AN EFFORT TO MAKE DRIVERS FEEL SAFER. HERE’S MORE. A BIG STEP, ONE THAT’S BEEN CALLED FOR? >> YES, AND I DON’T THINK WE TALK ENOUGH ABOUT DRIVER SAFETY, WHICH IS ODD, BECAUSE WHEN YOU THINK ABOUT IT, THESE

ARE DRIVERS WHO ARE PICKING UP STRANGERS, MOSTLY IN THEIR OWN CARS. I CAN IMAGINE THAT BEING A SOMEWHAT SCARY, MAYBE VULNERABLE FEELING. AND THESE ARE MEASURES BEING TAKEN REALLY TO MAKE DRIVERS FEEL A LITTLE SAFER AS THEY PICK UP DRIVERS IN THE DAY-TO-DAY. ED: DANA, HOW IS THIS GOING TO WORK? IF YOU PAY WITH A GIFT CARD ON UBER, RATHER THAN ATTACH A CREDIT CARD, THERE IS SOME VERIFICATION AS A PASSENGER OR RIDE YOU ALREADY HAVE TO GO THROUGH. WHAT WILL BE REQUIRED OF US GOING FORWARD? DANA: DRIVERS, AND EXCUSE ME, RIDERS WHO USE ANONYMOUS PAYMENT METHODS, AND I DON’T KNOW HOW MANY OF THEM THERE ARE, WILL NEED TO GO THROUGH A MANUAL

PROCESS. FOR MOST OF US, THE PROCESS WILL BE AUTOMATIC. IT MIGHT EVEN BE IT'S ALREADY BEEN DONE. I ACTUALLY CHECKED MY UBER ACCOUNT BEFORE JOINING YOU ALL HERE ON TV, AND I HAD CHECK MARKS NEXT TO BOTH MY CELL PHONE NUMBER AND MY EMAIL ADDRESS IN MY ACCOUNT. SO FOR MANY CUSTOMERS, THAT AUTOMATIC PROCESS MAY HAVE ALREADY TAKEN PLACE. IT'S WORTH NOTING THAT YOU CANNOT, AS A RIDER, OPT OUT OF THE AUTOMATIC PROCESS. IF YOU HAVE A PHONE NUMBER ATTACHED, EMAIL ADDRESS, UBER IS GOING TO MATCH YOU AGAINST A THIRD-PARTY DATABASE TO VERIFY YOUR IDENTITY. IT MAY ALREADY HAVE BEEN DONE. CAROLINE: THIS IS ONE OF A COUPLE OF STEPS THEY'RE DOING, THEY'RE DOING DASH CAMS AS WELL. THE REWARD MUST BE MORE

SUSTAINABLE DRIVERS ON THEIR PLATFORM. DANA: YES, DRIVERS HAVE SAID IN THE PAST, THEY ARE WORRIED ABOUT THEIR SAFETY, BOTH PHYSICALLY AND REPUTATIONALLY. THEY’RE WORRIED ABOUT THINGS LIKE CARJACKINGS. BUT ASIDE FROM VIOLENT INCIDENTS, THEY’RE WORRIED ABOUT MALICIOUS REPORTS. JUST REPORTS FROM MAYBE SPITEFUL RIDERS THAT CAN REALLY TANK THEIR RATING, AND THEREFORE, THEIR STANDING WITH THE PLATFORM AND, BY EXTENSION, THEIR INCOME. ONE OF THE MEASURES TODAY, IN ADDITION TO THE AUTOMATIC IDENTITY VERIFICATION, IS THE ABILITY TO NO LONGER MATCH WITHIN THE FUTURE SOMEONE WHO YOU’VE RATED AS A DRIVER A TWO OR THREE. YOU WOULDN’T BE MATCHED AGAIN WITH SOMEONE WHO YOU RATE JUST

ONE OUT OF FIVE. BUT THIS IS SORT OF AN EXTENSION OF THAT, SAYING, OK, THIS PASSENGER WAS A JERK, I RATED THEM TWO OR THREE, I’M NOT GOING TO SEE THEM AGAIN. ED: DANA WOLLMAN, THANK YOU VERY MUCH. MICROSOFT RAISED ITS QUARTERLY DIVIDEND 10% AND UNVEILED A NEW $60 BILLION STOCK BUYBACK PROGRAM, MATCHING THE SIZE OF THE REPURCHASE PLAN THREE YEARS AGO. THE COMPANY SAID SHAREHOLDERS AS OF NOVEMBER 21 WILL RECEIVE A DIVIDEND OF 83 CENTS A SHARE, COMPARED WITH THE CURRENT 75 CENTS. THE BUYBACK AGREEMENT REPRESENTS LESS THAN 2% OF MICROSOFT’S MARKET VALUE. CAROLINE: LET’S DISCUSS THIS WITH BILL GATES. AS HIS FOUNDATION JUST RELEASED ITS GOAL KEEPERS REPORT FOR

2024, highlighting a sudden halt in the global health boom, with a worsening child nutrition crisis, causing $3 trillion in economic losses. I sat down with Bill Gates to discuss just this, how technology and A.I. can help, and why resources are needed. Take a listen. Bill: We need to raise money so the poor countries get out of the poverty trap and then are self-sufficient. The innovation is going to accelerate tools like A.I., helping us understand the immune system and how that designs vaccines in a very deep way. The key thing that the foundation has is making sure it’s not just helping the rich countries, but it’s helping the poorest. So, you know, can they

GET MEDICAL ADVICE IN THEIR NATIVE LANGUAGE ON THEIR CELL PHONE? CAN THEY HAVE THE DISEASES THAT ARE SO IGNORED, LIKE MALARIA? CAN WE USE A.I. TO DEVELOP WAYS TO NOT ONLY REDUCE THAT, BUT EVENTUALLY ERADICATE IT? THAT’S WHERE THE FOUNDATION IS. LOOKING AT THE INNOVATION AND MAKING SURE THAT IT’S BENEFITING THOSE MOST IN NEED. CAROLINE: THE FOUNDATION TALKING WITH GLOBAL LEADERS OFTEN I’M SURE, GLOBAL LEADERS OF WEALTHY DEVELOPED NATIONS WHO ARE PREOCCUPIED RIGHT NOW WITH THEIR OWN FISCAL INSTABILITY, THEIR OWN WORRIES ABOUT THE COST OF LIVING. WILL YOU GET THE HELP YOU NEED FROM DEVELOPED NATIONS, DO YOU THINK? BILL: THAT’S A VERY GOOD QUESTION.

THE DREAM IS THAT EVEN IN THE FACE OF HUGE BUDGETARY CHALLENGES THAT ALL COUNTRIES HAVE, THAT THEY WOULD BE WILLING TO HAVE 1% TO 2% TO GO TO HELP THE POOREST, HELP THESE COUNTRIES MOVE FORWARD. THESE ARE THINGS WHERE YOU’RE SAVING A LIFE FOR LESS THAN $1,000 PER LIFE SAVED. SO, YOU KNOW, VERY CATALYTIC, VERY WELL MEASURED. YOU KNOW, I WOULDN’T BE PUTTING MY MONEY IN UNLESS I KNEW THAT IT WAS EXTREMELY WELL SPENT. SO WE’RE TRYING TO KEEP THIS ON THE AGENDA TO CONTINUE THAT MIRACLE THAT TOOK PLACE, WHERE WE MADE SO MUCH PROGRESS GETTING RID OF CHILDHOOD DEATH. CAROLINE: BILL GATES THERE. ED, TO SOLVE A $3 TRILLION

ECONOMIC ISSUE, IT’S NOT ROCKET SCIENCE. IT’S ABOUT GETTING VITAMINS OUT TO PEOPLE, IT’S ABOUT MORE PRODUCTIVE COWS. ED: AND CONSISTENT WITH THE FOUNDATION, WHAT GATES IS LOOKING FOR IS TECHNOLOGY THAT IS UP FRONT AFFORDABLE, THAT CAN SCALE, AND THAT’S CONSISTENT WITH WHAT HE’S DONE. BUT THEY’RE PUTTING A BIG CHECK IN, PARTICULARLY IN NUTRITION AND THINGS LIKE THAT. COMING UP, SALES FORCE SET TO UNVEIL ITS NEW A.I. STRATEGY AT ITS DREAM FORCE EVENT. WE HAVE ALL THE DETAILS COMING UP NEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TIME FOR TALKING TECH. FIRST UP, HONG KONG IS PREPARING TO ISSUE A POLICY STATEMENT ON THE USE OF A.I. IN FINANCE, ACCORDING TO SOURCES.

THE DOCUMENT IS INTENDED TO SIGNAL HONG KONG’S SUPPORT FOR ARTIFICIAL INTELLIGENCE. THE MOVE COULD CAPITALIZE IN AREAS FROM TRADING TO INVESTMENT BANKING AND CRYPTOCURRENCY. LENOVO IS MOVING BEYOND PRODUCTS LIKE LAPTOPS AND SMARTPHONES, AND THEY’LL ALSO BUILD OUT FACILITIES IN THE BANGALORE REGION, INCLUDING A RESEARCH LAB THAT WILL FOCUS ON A.I. AND AMAZON’S C.E.O. IS MOVING TO STREAMLINE THE COMPANY. IN A MEMO TO EMPLOYEES YESTERDAY, THE C.E.O. ANNOUNCED CUTTING MANAGEMENT AND ORDERED EMPLOYEES TO RETURN TO THE OFFICE FIVE DAYS A WEEK BEGINNING IN JANUARY. ED: MORE TECH NEWS, AS SALES FORCE IS KICKING OFF ITS DREAM FORCE EVENT TODAY. IT’S ALSO UNVEILING A PIVOT IN ITS A.I.

STRATEGY, NOW SAYING THAT A.I. TOOLS CAN HANDLE TASKS WITHOUT HUMAN SUPERVISION AND CHANGING THE WAY IT CHARGES FOR SOFTWARE. LET’S BRING IN OUR ANALYST. AND ON THE CHARGING, THEY’RE GOING TO START DOING $2 PER CONVERSATION HANDLED BY AN A.I. AGENT, AS OPPOSED TO A SUBSCRIPTION ON A PER HEAD BASIS. WHAT’S THE B.I. REACTION TO THAT? >> YEAH, SO WHEN YOU LOOK AT THE WAY SOME OF THESE CO-PILOTS ARE BEING PRICED, COMPANIES LIKE MICROSOFT ARE SAYING THEY’RE GOING TO CHARGE $30 PER MONTH. THAT’S ONE PRICING MECHANISM. ANOTHER IS CONSUMMATION-BASED, WHICH IS WHAT YOU JUST MENTIONED. ADOBE HAS A SIMILAR ONE FOR THEIR APPLICATION, WHERE YOU’RE GOING TO GET SOME CREDITS

INITIALLY, AND THEN YOU HAVE TO PAY FOR IT. AND THE THIRD ONE WOULD BE JUST THE ENTERPRISE PACKAGE. THERE ARE SEVERAL WAYS YOU CAN MONETIZE THIS. NEEDLESS TO SAY, OVER THE NEXT FEW YEARS, WE THINK THESE COSTS ARE GOING TO REDUCE DRAMATICALLY, BECAUSE CURRENTLY THE REASON WHY IT’S A LITTLE BIT MORE EXPENSIVE IS BECAUSE THERE’S A LOT OF RESOURCES TO TRAIN THESE LARGE LANGUAGE MODELS, AND OVER TIME THAT PROCESSING IS GOING TO IMPROVE. CAROLINE: AS IT BECOMES CHEAPER, WILL THAT BE REFLECTED IN THE PRICE POINT THAT YOU AND I CHARGED FOR ANY CONVERSATION? >> YEAH, I THINK THAT IT IS GOING TO BE FOR EVERYTHING, NOT JUST THIS, BUT PROBABLY YOU CAN SAY CHATGPT PRICING OR

SUBSCRIPTIONS. OVER TIME, YOU COULD EXPECT SOME COMPRESSION IN THOSE CHARGES AND A BETTER PROFIT FOR THESE A.I. VENDORS. FOR SALESFORCE, I THINK THEY’RE GOING TO PLAY IT A FEW WAYS. THEY HAVE A PRODUCT CALLED DATA CLOUD. INNING THAT’S DOING VERY WELL. -- I THINK THAT’S DOING VERY WELL. THAT’S AN AREA OF STRENGTH FOR THEM. REMEMBER, THAT’S TOO SMALL OF A THING. THAT CANNOT OFFSET THE BIGGER COMPRESSION ON ENTERPRISE I.T. BUDGET THAT’S COMPRESSING THEM RIGHT NOW. ED: I’M SURPRISED THAT YOU’RE NOT HERE WITH ME IN SAN FRANCISCO FOR DREAMFORCE. YOU KNOW SALESFORCE WELL, THE RESEARCH, THE PODCAST. WHY AREN’T YOU TEMPTED TO COME OUT?

IS IT NOT A SUBSTANTIVE EVENT? >> NO, IT IS AN IMPORTANT EVENT, BUT FRANKLY SPEAKING, ALMOST EVERY WEEK THERE IS AN EVENT LIKE THIS. I WON’T GET ANY WORK DONE IF I WAS DOING THAT. CAROLINE: [LAUGHTER] HE’S GOT TO BE IN THE OFFICE. LIKE MOST OF THE AMAZON EMPLOYEES WILL HAVE TO BE SOON. VERY BRIEFLY, WHAT FACTORED INTO THIS IN THE MOMENT IN SALESFORCE? ARE WE SEEING THE ENTHUSIASM REFLECTED IN THE VALUATION? >> YEAH, I THINK THEY REALLY NEED TO GET BACK TO DOUBLE-DIGIT GROWTH RATE. I THINK THIS IS REALLY A BIG ISSUE FOR THEM, BECAUSE RIGHT NOW WHEN WE LOOKED AT BOOKINGS DATA FOR THE LAST QUARTER, THEY ARE HOVERING AROUND 8.5%, 9%

MARK WHICH MEANS NEXT YEAR SALES GROWTH IS GOING TO BE 9%. YOU CAN CHECK THAT ON THE BLOOMBERG TERM ANALOGY. THIS NEEDS TO COME TO 10% BEFORE YOU WOULD SEE INVESTORS FILE INTO IT. THE MARGIN STORY IS DONE, BUT NOW IT’S A MATTER OF REVENUE ACCELERATION FOR THEM. CAROLINE: THANK YOU. COMING UP, WE’LL HAVE ALL THE DETAILS ON HOW ELON MUSK’S SUPER P.A.C. IS POURING MONEY INTO SOME KEY NEW YORK RACES FOR THE G.O.P. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. LET US TALK POLITICS BECAUSE ELON MUSK IS OPENING HIS WALLET WIDER IN SUPPORT OF REPUBLICAN CANDIDATES IN BATTLEGROUND DISTRICTS.

HIS SUPER PAC IS FUNNELING $2.1 BILLION IN HIS FIRST FORAY INTO CONGRESSIONAL RACES. MIKE SHEPPARD JOINS US NOW. THIS IS NEW. WHICH RACES ARE THEY TARGETING? MIKE: WHAT THEY ARE LOOKING FOR ARE SOME OF THE MOST CLOSELY CONTESTED DISTRICTS IN THE COUNTRY. THESE ARE THE KIND OF COMPETITIONS THAT COULD DECIDE CONTROL OF THE HOUSE OF REPRESENTATIVES COME NOVEMBER. THESE ARE AREAS WHERE JOE BIDEN WON IN 2020 BUT DEMOCRATS IN 2022 LOST THOSE SEATS. NOW THE DEMOCRATIC PARTY IS MAKING EFFORTS TO REGAIN CONTROL OF THOSE DISTRICTS SO THAT MAY BE THEY COULD FLIP THE HOUSE BACK INTO THEIR HANDS COME NOVEMBER. THIS WILL NOT BE EASY BUT IT IS SOMETHING A LITTLE MORE WITHIN

REACH THAN IT MIGHT APPEAR, EVEN AS WE LOOK AT A CLOSELY CONTESTED PRESIDENTIAL RACE. ELON MUSK PUTTING MONEY FROM HIS SUPER PAC INTO THOSE RACES. ONE IS IN WESTCHESTER AND ANOTHER IS AN DISTRICT -- A DISTRICT FURTHER UPSTATE. THESE ARE THE PLACES WHERE REPUBLICANS ARE LOOKING TO HOLD ONTO THEIR GAINS. ED: $2.1 MILLION MIGHT NOT SEEM LIKE A LOT BUT OTHERS IT SEEMS LIKE A LOT. THE POINT THAT DONNA MAKES IS THAT ELON MUSK'S IS THE WORLD'S RICHEST MAN AND HAS OTHER PLATFORMS IN WHICH HIS VOICE GETS OUT TO VOTERS. EXPLAIN WHY THAT IS IMPORTANT? MIKE: YOU ARE GETTING AT SOMETHING VERY IMPORTANT IN THIS PARTICULAR CAMPAIGN, AND THAT IS THE DYNAMIC OF IN-KIND SUPPORT THAT ELON MUSK IS ABLE

TO PROVIDE TO HIS ALLIES ON HIS RIGHT. HE REALLY CAME OUT AND ENDORSED A CANDIDATE WHEN HE DID SO IN JULY, COMING OUT IN FAVOR OF FORMER PRESIDENT DONALD TRUMP. HE HAS SIGNALED HIS INTEREST IN PUSHING MORE OF THESE RIGHT-LEANING CAUSES IN CONSERVATIVE CANDIDATES. HE IS DOING SO USING HIS X PLATFORM BY AMPLIFYING THEIR POSTS AND VIEWS AND PUTTING INFORMATION OUT THERE AND PUTTING POSTS OUT THERE THAT MAKE KAMALA HARRIS AND DEMOCRATS LOOK NOT SO GREAT. CAROLINE: WHAT DOES THAT MEAN FOR HIS BUSINESS LIKE TESLA? WHAT DOES IT MEAN TO FINANCE SOME COULD -- SOME POLITICAL CAMPAIGNS? MIKE: ELON MUSK HAS SO MUCH BUSINESS TIED UP WITH THE FEDERAL GOVERNMENT EITHER DIRECTLY WITH

SPACEX PROVIDING SERVICES TO THE U.S. GOVERNMENT, BUT ALSO TESLA HAS A STAKE IN THE FATE OF HOW PRESIDENT JOE BIDEN'S INFLATION REDUCTION ACT AND ALL OF ITS GREEN INCENTIVES TO GET MORE PEOPLE TO BUY ELECTRIC VEHICLES. HE HAS A VERY STRONG TIE TO THE U.S. GOVERNMENT AND HOW THINGS LOOK FOR HIS COMPANIES. IN THIS SENSE, HE IS TRYING TO ENSURE THAT NOT ONLY DOES HE GET A CANDIDATE LIKE DONALD TRUMP WHO IS IN HIS COURT AND FAVOR INTO THE WHITE HOUSE, BUT HE ALSO WANTS TO MAKE SURE THAT HE HAS ALLIES IN CONGRESS THAT WILL ACT ON HIS INTEREST. ED: MIKE SHEPPARD OUT OF D.C., THANK YOU. INSTAGRAM IS ROLLING OUT NEW PRIVACY SETTINGS FOR TEENAGERS.

MAKING TEENAGER ACCOUNTS PRIVATE BY DEFAULT, LIMITING THE USE OF PRIVATE MESSAGES AND SENSITIVE PROCESS. -- POST. THEY WILL BE TURNED ON FOR ALL INSTAGRAM USERS UNDER THE AGE OF 18. CAROL WAGONER COVERS SOCIAL MEDIA AND JOINS US. YOU SPOKE TO THE CHIEF OVER AT INSTAGRAM, NOT ONLY ABOUT HOW THAT WILL LOOK IF YOU ARE A TEENAGED USER BUT THE RATIONALE. WHAT DID HE TELL YOU? >> HE SAYS THAT THIS HAS BEEN IN THE WORKS FOR OVER A YEAR AND YOU CAN SEE WHY. THIS IS ONE OF THE BIGGEST COMPLAINTS THAT THEY GET FROM PARENTS AND CERTAINLY FROM LAWMAKERS. WE HAVE SEEN MARK ZUCKERBERG HAVE TO SHOW UP TO ANSWER QUESTIONS ABOUT THEIR ROLE IN PROTECTING CHILDREN OVER SEVERAL INCIDENTS.

THIS IS NOT SOMETHING THAT IS A NEW PROBLEM OR IDEA, AND IT HAS BEEN IN THE WORKS. I THINK THE BIGGER QUESTION IS WHAT TOOK THEM SO LONG, BUT I THINK THEY GOT TO A POINT WHERE THIS IS A ROBUST SET OF CHANGES, AND THEY FEEL LIKE THIS IS ADDRESSING SOME OF THE CONCERNS THAT THEY ARE GETTING FROM PARENTS AND LAWMAKERS. CAROLINE: IT DOESN'T WHINE ARTIFICIAL INTELLIGENCE TO SAY THAT YOU ARE THE AGE TO SAY YOU ARE. >> IF YOU ARE A TEENAGER UNDER 18 AND LYING ABOUT YOUR BIRTHDAY, THEY WILL USE AI DETECT THOSE LIES. THEY ARE GOING TO LOOK AT WHAT A NORMAL TEENAGER ACCOUNT MIGHT LOOK LIKE AND WHAT NORMAL BEHAVIOR LOOKS LIKE, AND USING AI, THEY WILL BUCKET PEOPLE INTO WHETHER THEY THINK THEY ARE AND

UNDER 18 ACCOUNT AND PUT THEM INTO THOSE SETTINGS. NOW, IT MIGHT MAKE MISTAKES SOMETIMES, BUT YOU CAN IMAGINE A LOT OF TEENAGERS WHO WILL WAKE UP AND TRY TO CHANGE THEIR BIRTHDAY TO GET AROUND THIS. META SAYS THEY ARE TRYING TO PREVENT THAT. ED: FOR MANY SOCIAL MEDIA PLATFORMS, THE DEMOGRAPHIC OF THE USER BASE IS IMPORTANT. DO WE HAVE A SENSE OF HOW MUCH OF THE USER BASE IS TEENAGED AND HOW MUCH OF IT IS PARENTS OVERSEEING TEENAGE USER ACCOUNTS? KURT: WE DO NOT. WE KNOW THERE ARE MILLIONS OF TEENAGERS AROUND THE WORLD AND IN THE U.S. USING INSTAGRAM. WE DO NOT KNOW A MORE STRIKING PERCENTAGE THAN THAT. THIS WILL BE A SMALL PORTION, SO EVEN THOUGH IT IS ALL TEENS THAT ARE 18, IT IS JUST THOSE

UNDER 16 WHO NEED PARENTAL PERMISSION. IF YOU ARE A 16 OR 17-YEAR-OLD, YOU WILL BE KICKED INTO THE SETTINGS, BUT YOU CAN CHANGE THEM ON YOUR OWN. THIS IS A SMALL COHORT BASED ON THE TOTAL AUDIENCE, BUT IT IS THE MOST VULNERABLE AND THE GROUP THAT PEOPLE ARE THE MOST CONCERNED ABOUT BECAUSE THEY ARE INTERACTING AT TIMES WITH PEOPLE THEY HAVE NEVER MET OR DO NOT KNOW. CAROLINE: AS A GLOBAL CONCERN, HOW IS THIS IN GLOBAL OUTREACH? KURT: THIS WILL BE IMPLEMENTED FOR TEENAGERS ACROSS THE WORLD. THEY ARE STARTING WITH ENGLISH-SPEAKING COUNTRIES IN THE U.S., U.K., CANADA, AND AUSTRALIA AND BRING IT TO THE REST OF THE EUROPEAN UNION BY THE END OF THIS YEAR.

IN 2025, THEY WILL EXPAND TO OTHER COUNTRIES. THIS IS NOT JUST A U.S. THING; IT'S A GLOBAL THING. AND I SAID, IS THIS GOING TO COME TO FACEBOOK? BECAUSE THIS IS NOT JUST AN ISSUE. THEY SAID THEY WANTED TO START SMALL WITH INSTAGRAM, BUT IT SEEMS THAT I GOT THE SENSE THAT THESE PROTECTIONS COULD MOVE TO THE OTHER APPS IN THE FUTURE. CAROLINE: THANK YOU FOR KEEPING US UP TO SPEED. MORE ON META BECAUSE IT IS BANNING RT AND ITS PARENT COMPANY, THE MEDIA GROUP, AND OTHER RELATED ENTITIES, ACCORDING TO REPORTS. A SPOKESPERSON SAID THAT THE OUTLETS HAVE BEEN BANNED FOR FOREIGN INTERFERENCE ACTIVITY. ED: LET US TAKE A QUICK LOOK AT MARKET BECAUSE WE HAVE NOT DONE

IT AS MUCH AS WE SHOULD. THE S&P 500 IS NEAR A FRESH RECORD WHAT I AM LOOKING AT INDEXES. WE KNOW WHAT THE POINT BOOSTS OUR. MICROSOFT AFTER THE SHARE BUYBACK AND DIVIDEND PUSHING THE NASDAQ 100 HIGHER ALONG WITH AMAZON. THE CHIPS ARE OUTPERFORMING OF A PERCENTAGE POINT ON THE SEMICONDUCTOR INDEX. UNTIL -- INTEL HAS SEEN ITS GAINS RISE. STAY WITH US. THIS IS BLOOMBERG TECHNOLOGY. ♪ THIS IS BLOOMBERG. CAROLINE: IT IS TIME FOR THE VC ROUND UP. NVIDIA BACKS SAKANA.AI. THE STARTER -- THE STARTUP WAS BOOSTED BY INVESTMENTS FROM SOME OF JAPAN'S BIGGEST COMPANIES IN A SERIESA FUNDING ROUND. FLINK HAS RAISED $150 MILLION IN FUNDING.

STILL, IT IS DOWN FROM $3 BILLION THAT IT WAS VALUED AT DURING THE HOT OF COVID WHEN IT EMERGED AS A DARLING DURING LOCKDOWN. PATRON RAISED $100 MILLION FOR A NEW FUND WITH A FOCUS ON YOUNG CONSUMER SING COMPANIES IN THE GAME FIELD. -- CONSUMER FACING COMPANIES IN THE GAME FIELD. ED: THE CO-FOUNDER JOINS US NOW FOR THE FUNDS LIGHT. WE COVER GAMING A LOT IN THIS PROGRAM WITH A LOT OF HEADLINES WE SHOULD GET TO. AS A GOOD PLACE TO START WITH $100 BILLION TO -- $100 MILLION TO INVEST, WHERE DO YOU FIND DISRUPTION IN THE GAMING INDUSTRY? >> GOOD MORNING AND THANK YOU FOR HAVING ME. ALONGSIDE MY PARTNERS, WE ARE EXCITED TO ANNOUNCE THAT $100 MILLION SECOND FUND. TO THE POINT ABOUT WHERE WE

FOCUS. I THINK A LOT OF OUR INSIGHT COMES FROM THE TIME THAT WE HELPED BUILD DISCORD, AND THERE IS AN ENTIRE GENERATION OF YOUNG PEOPLE GROWING UP ON THE GAMING PLATFORMS WITH THOUSANDS OF HOURS WITH THEIR FRIENDS. I THINK WE WANT TO FOLLOW THE AUDIENCE AND WHAT ARE THE WAYS THAT WILL GET INVOLVED AND HOW THEY USE THE INTERNET. ED: WHEN I THINK ABOUT STUDIOS, TO FOCUS ON STUDIOS IN PART, AN AREA WITH UNCERTAIN FUTURES AND A LOT OF THEM ARE PULLING BACK AND REDUCING STAFF. DOES THAT IMPACT YOUR ABILITY TO INVEST? JASON: WHEN WE LOOK AT GAMING STUDIOS, WE LOOK AT MARKET EXPANSION AND CREATION. IT IS TOUGH TO GO AND COMPETE AGAINST RIOT OR VALVE. IN THAT AREA, WE LOOK FOR WHAT IS THE UNIQUE INSIGHT AND HOW

CAN YOU GROW WHAT PREVIOUSLY SEEMED LIKE A MARKET THAT MIGHT'VE BEEN TOO NICHE. LEAK WAS THAT WAY INITIALLY. CAROLINE: HOW MUCH IS AI CHANGING THE GAME FOR YOU? JASON: I THINK AS WITH A LOT OF TECHNOLOGY, EMERGING TECHNOLOGIES, GAMING SERVED AS THE FOREFRONT FOR NEW TECHNOLOGY ADOPTION. ON OUR SIDE WE BELIEVE THAT AI WILL CHANGE HOW PEOPLE USE THE INTERNET. AND I THINK A LOT OF THE EARLIEST EFFORTS ARE TIED TO CONTENT AND NAME CREATION. THE THING WE ARE MORE INTERESTED IN IS HOW CAN AI MAKE YOUR EXPERIENCE BETTER AND THE GAMES YOU PLAY MORE FUN AND THE LEARNING APPS MORE EFFECTIVE AND SHOPPING EASIER. CAROLINE: THAT HAS BEEN A STORY THAT YOU

HAVE TOLD TO INSTITUTIONAL INVESTORS. HAVE -- YOU HAVE GOTTEN IN, YOU HAVE MARK ANDREASEN AND FRED WILSON. WHY ARE THEY SEEKING YOU OUT IN PARTICULAR AND HOW EASY WAS IT TO GET THAT COMMITMENT IN THIS ENVIRONMENT? JASON: I THINK FUNDRAISING HAS BEEN CHALLENGING OVER THE LAST YEAR OR YEAR-AND-A-HALF. WHAT RESONATED WITH A LOT OF OUR EARLIER INVESTORS AND LARGER INSTITUTIONS IS THE IDEA THAT WE ARE VERY FOCUSED ON WHAT WE KNOW BEST AND WE SPENT THE BETTER PART OF THE LAST DECADE HELPING BUILD THOSE COMPANIES AND IT IS BECOMING CLEAR THAT THE CONSUMERS THAT GROW UP ON PRODUCTS LIKE DISCORD ARE THE ONES WHO ARE GOING TO DRIVE FUTURE INNOVATION ADOPTION OF

TECHNOLOGY. SO THAT FOCUS HAS ALLOWED US TO DIFFERENTIATE. ED: DISCORD'S PRESIDENT IS DIFFERENT TO ITS ORIGIN STORY. I WONDER HOW MUCH IN THAT CONTEXT YOU ARE FOCUSED ON BEING AN OPERATOR AND NOT INVESTOR. A LOT OF PEOPLE HAVE GREAT IDEAS THAT MORPH INTO SOMETHING DIFFERENT. JASON: FOR THE FIRM, AMBER HELPED US EXPAND INTO NON-GAMING VERTICALS. MY JOB IN RIOT WAS TO LAUNCH THE GAME, SPORTS, AND NEW MARKETS. HAVING THIS REAL RECENT EXPERIENCE HAS REALLY RESONATED WITH THE FOUNDERS THAT WE ARE WORKING WITH. CAROLINE: I GO BACK TO A DIFFERENT CYCLE WHEN WE THOUGHT OF GAMING AND DISCORD AND WEB 3. HOW MUCH IS THAT AN UNDERLYING DRIVER EVEN THOUGH IT IS LESS

SEXY TO TALK ABOUT? JASON: WE WILL ALWAYS LOOK AT HOW TECHNOLOGIES INFLUENCE HOW PEOPLE CONNECT TO EACH OTHER. BUT WHETHER IT IS WEB THREE OR GENERATIVE AI, IT DOES NOT MATTER. WE ARE FOCUSED ON THE AUDIENCE AND THEIR BEHAVIOR. IT IS GOOD TO BE LOOKING IN AREAS WHERE NOT EVERYONE ELSE IS LOOKING. WE ARE ALWAYS GOING TO BE HYPER-FOCUSED ON THIS AUDIENCE AS THEY GROW UP AND ADOPT NEW TECHNOLOGIES. CAROLINE: THANK YOU SO MUCH FOR JOINING US. LET US TALK REGULATION. THE EUROPEAN UNION PROPOSED A NEW DIGITAL CHIEF. THEY ARE A VETERAN FINNISH LAWMAKER WHO IS CENTRAL IN CRAFTING RULES AND TRAINING IN BIG TECH -- REINING IN BIG TECH.

THEY WILL BE IN CHARGE OF ENFORCING THE DIGITAL SERVICES AND MARKETS ACT AND RESPOND TO RENEW EUROPEAN TECHNOLOGY CHAMPIONS. COMING UP, DONALD TRUMP IS INTO MORE THAN NON-FUNGIBLE TOKENS. HE LAUNCHED A NEW CRYPTO PLATFORM. WE DISCUSSED THE FORAY INTO DEFY AND OTHER DIGITAL ASSETS. THAT IS UP NEXT. ED: I WANT TO GET A QUICK CHECK ON CRYPTO MARKETS. WE TALKED ABOUT IT AS MUCH. BEFORE 10:00 A.M. EASTERN RISK ASSETS TOOK A BIG LEG TO THE UPSIDE INCLUDING BITCOIN BACK TRADING AROUND SIX TO THOUSAND U.S. DOLLARS. TOKEN HAD A SHAKY START TO THE WEEK. THAT WAS A BIG PART OF THE NARRATIVE. THERE WERE OTHER INDIVIDUAL MOVERS LARGELY TIED TO

MICROSTRATEGY AND RIOT AND COINBASE PUSHING HIGHER. DONALD TRUMP HEADLINED AN EVENT BILLED AS THE UNVEILING OF A CRYPTO PLATFORM PROMOTED BY THE REPUBLICAN NOMINEE AND HIS SON CALLED WORLD LIBERTY FINANCIAL TO ATTRACT DIGITAL ASSET PROPONENTS. HERE IS WHAT HE HAD TO SAY ABOUT WHY THE -- WHY HE THINKS THE U.S. SHOULD EMBRACE CRYPTO. >> IF WE DO NOT DO IT, CHINA WILL DO IT. WHAT IF WE DO NOT DO IT YOU WILL NOT BE THE BIGGEST AND WE HAVE TO BE THE BIGGEST AND THE BEST. ED: WE ARE JOINED BY AMANDA WHO USED TO WORK AT THE JUSTICE DEPARTMENT SPECIALIZING IN MONEY LAUNDERING AND CRYPTO. ALL OF THOSE WHO TUNED IN IT WAS KIND OF THIN ON DETAIL AND

SPECIFICS. A FOCUS ON DEFY, AND IT WILL BE AN ISSUANCE OF A TOKEN FOR ACCREDITED INVESTORS ONLY IN THE UNITED STATES. WHAT DID YOU LEARN, AND WHAT IS THE MAIN TAKEAWAY? AMANDA: THE SAD THING IS THAT EVERYTHING HE SAID IS RIGHT. I THINK WHAT PEOPLE IN THE INDUSTRY ARE TERRIFIED OF IS THAT HE HAS THE EMISSARY SAYING IT BECAUSE THERE IS NO DOUBT THAT WLFI IT WILL BE A PUMP AND DUMP. AND EVEN TRUMP SUPPORTERS ARE BEGGING HIM NOT TO DO THIS BECAUSE OF THE NEGATIVE IMPACT IT COULD HAVE ON THE INDUSTRY. CAROLINE: CAN YOU GIVE US REAL DATA OR HARD EVIDENCE AS SOMEBODY WHO FORMALLY WORKED -- FORMERLY WORKED AS THE GOVERNMENT ON IF IT WILL BE A PUMP AND DUMP BECAUSE MANY WOULD DISPUTE THAT.

AMANDA: I REALLY TRY TO BE OBJECTIVE, BUT IF YOU ARE LOOKING AT THE PROJECT WHERE THE INCENTIVES ARE FLIPPED, THE ORGANIZERS HOLD 25% OR LESS AND ETHEREUM CAP DICKSTEIN PERCENT. TRUMP ORGANIZERS ARE KEEPING 70%, AND EVEN IN THE 30%, THEY WILL MAKE PROFIT OFF OF THAT. THAT IS A TERRIBLE SIGN IN TERMS OF STRUCTURE. THE OTHER THING YOU HAVE TO LOOK AT IS MOTIVE. TRUMP IS STARING DOWN THE BARREL OF A $400 MILLION COLLECTION IN NEW YORK, AND THIS WOULD BE PERSONAL FUNDS HE COULD USE TO SATISFY. THE MOTIVES TO MAKE A BUNCH OF MONEY VERY QUICKLY IS UNFORTUNATELY THE WORST ASPECT OF CRYPTO AND THE ASPECT OF THE INDUSTRY THAT PEOPLE DO NOT

WANT TO CONTINUE. ED: BLOOMBERG STATES QUITE CLEARLY THAT THE ISSUANCE OF WLFI IS HAVING A ROLE IN THE GOVERNANCE OF THE BUSINESS. I WANT TO PARK THAT. THE OTHER NARRATIVE IS THAT TRUMP THINKS THAT THE UNITED STATES OF AMERICA NEEDS TO DO THIS BIGGER APPROACH BECAUSE CHINA IS ALREADY DOING IT AND HE WANTS AMERICA TO BE A LEADER IN THE FIELD. HOW DO YOU RESPOND TO THAT RATIONALE? AMANDA: HE IS RIGHT. I WISH THE HARRIS CAMPAIGN WAS SAYING THAT AND I THINK THEY ARE TIED IN TERMS OF WHAT THEY CAN SAY BECAUSE A SITTING VICE PRESIDENT CANNOT TALK ABOUT THE SITTING ADMINISTRATION NEGATIVELY. EVERYBODY WANTS A PIVOT AND WANTS AMERICA TO LEAD FIRST AND

THE SAD THING IS THAT TRUMP IS WHAT DASHES RIGHT, BUT THE PROJECT MIGHT DESTROY THE THING THAT HE SAID WAS ACCURATE. CAROLINE: WHEN WE THINK OF CHINA, WE DO NOT SEE CHINA EMBRACING CRYPTO PROJECTS. WE THINK OF THEM ENTERTAINING THE IDEA OF STABLECOINS OR SOME KIND OF USING WITHIN THE CENTRAL BANK COIN. WHAT OF D5 MORE BROUGHT -- DEFY AND THIS PROJECT ABOUT GETTING IN THE WAY OF THE INTERMEDIARIES AND IT IS ABOUT LOANING AND LENDING ASSETS? AMANDA: THERE ARE GREAT ASPECTS AND THAT PART OF THIS PROJECT IS THE GOOD PART THAT THE INDUSTRY WANTS TO TALK ABOUT. THE EMISSARY IF THERE IS END -- IF THIS ENDS UP BEING A RUG PULL, IT IS GOING TO BE THE WORST. THERE ARE AMAZING

PROJECTS THAT THE INDUSTRY WANTS TO HIGHLIGHT. THIS WILL NOT BE ONE OF THEM. I DO NOT KNOW THAT CHINA IS A MARKET-LEADING ON IT. THERE ARE OTHER COUNTRIES THAT ARE MORE PRO-INVESTING AND PROBE REGULATING IN THOSE AREAS, AREAS LIKE SINGAPORE. SOMETIMES HE DOES NOT GET IT QUITE RIGHT, WHICH IS UNFORTUNATE. THE FACT THAT AMERICA NEEDS TO LEAD IS CORRECT, AND IT IS HORRIFYING THAT THIS PROJECT MIGHT TAKE US BACK INSTEAD OF ADVANCING. CAROLINE: THEY REPORTED A DEEP DIVE STORY ON THE PEOPLE BEHIND THE PROJECT AND THE PROJECT BEFORE THAT HAD BEEN HACKED, AND PEOPLE HAVE COME ACROSS FROM THAT. THEY RESPONDED BASICALLY, WE ALL SEE THE PICTURE YOU ARE TRYING TO PAINT AND CONSIDERATE AT.

BEST GROSSLY INACCURATE AND THEY ARE CONFIDENT THAT RESULTS WILL SPEAK FOR THEMSELVES. YOU TALK ABOUT REGULATION. WHAT REGULATION COULD BE PUT IN PLACE TO ENSURE THAT THESE PROJECTS DO NOT HAVE THE QUESTION OF WHETHER IT WILL BE A RUG PULL? AMANDA: THERE ARE REGULATIONS THAT WE COULD USE IN TRADITIONAL. I PROSECUTED THOUSAND PEOPLE WHO STOLE MONEY IN TRADITIONAL FINANCE. AND A LOT OF TIMES YOU ARE REMINDED TO DO YOUR OWN DUE DILIGENCE OR DO YOUR OWN RESEARCH. I THINK THERE ARE PARTICULAR REGULATIONS BECAUSE THEY ARE MAKING CERTAIN FINANCIAL ACTS DECENTRALIZED AND THAT IS THE LONGER AN COMPLICATED QUESTION. CAROLINE: WE WILL GET YOU ON FOR A LONGER AND MORE COMPLICATED ANSWER SOON THAT WE HOPE. THAT DOES IT FOR THIS EDITION.

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