>> 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, THIS IS BLOOMBERG TECHNOLOGY. NVIDIA BEATING MICROSOFT IN MARKET CAPITALIZATION. WE TALKED TURNAROUND EFFORTS AS PELOTON PUSHES FOR PROFITABILITY. APPLE'S APP STORE REORG. THE EXECUTIVE SHAKE AMID A REGULATOR SCRUTINY. LET'S CHECK IN ON THESE MARKETS BECAUSE WE ARE TUSSING AHEAD OF THE ALL-IMPORTANT SPEECH FROM JAY POWELL. WE ARE ALL EYES ON WHAT IS HAPPENING IN JACKSON HOLE TOMORROW. DOWN ON THE NASDAQ 100 MORE BROADLY. THIS AS WE SEE A TUG-OF-WAR WHO

WHO WILL BE THE MOST VALUABLE COMPANIES? APPLE STILL REIGNED SUPREME. LET'S MOVE ONTO SOME OF THE INDIVIDUAL MOVERS. WE ARE SEEING COMPANIES ON THE MOVE PAID. HOWEVER, WE ARE SEEING A 27% MOVE ON ITS CURRENT QUARTER. THEY JUST REPORTED FISCAL FOURTH-QUARTER COMING IN BETTER THAN EXPECTED. GOING TO DELVE INTO IT WITH THE KEY ANALYST A LITTLE BIT. WE ARE UP MORE THAN 11% HIGHER. SALES FORECAST BEATING ANALYST EXPECTATIONS. THE CFO ANNOUNCING HER RETIREMENT. THE DEPARTURE ISN'T A RESULT OF ANY DISAGREEMENTS, THE COMPANY SAYS. WE SEE SNOWFLAKE DOWN MORE THAN 13%. IS THE AI PART OF THIS EQUATION? THAT'S THE KEY CONCERN AS REVENUE FORECASTS MISS.

EXPECTATIONS. WE WILL DO A DEEP DIVE ON THAT LATER. LET'S GET TO WHAT HAS BEEN THE MARKET CAPITALIZATION STORY. NVIDIA ECLIPSING MICROSOFT AGAIN. A FEW TIMES OVER THE PAST WEEK. NVIDIA JUST AS WE LOOK TOWARDS EARNINGS AUGUST THE 28TH STILL SEEMS TO BE GETTING MOMENTUM FROM WHO IS PURCHASING WHAT. >> WE HAVEN'T HAD NVIDIA'S EARNINGS YET BUT FROM WHAT WE'VE SEEN SO FAR. WE ARE NOTICING AND INVESTORS ARE NOTICING THESE BIG TECH COMPANIES ARE WILLING TO SPEND A LOT ON AI. AND THE BENEFICIARY OF THAT. ALPHAS -- ALL OF THEM IN THEIR EARNINGS REPORTS THAT WE WANT TO CONTINUE TO SPEND ON AI. I WAS LOOKING AT A NOTE FROM NICK CHOLOS AND HE POINTED OUT FOR MICROSOFT AND META THE

OPERATING CASH FLOW GROWTH EXCEEDS CAPEX. THESE COMPANIES HAVE MORE CASH TO DEPLOY ON THE CAPEX SO HE TAKES THAT IS ASSIGNED THE COMPANIES WILL SPEND EVEN MORE ON AI AND THAT WILL BENEFIT NVIDIA. WHETHER OR NOT WE SEE THAT IN THE RESULTS NEXT WEEK IS THE BIG QUESTION BUT LIKE YOU SAID THE STAKES ARE VERY HIGH ESPECIALLY AFTER TSMC EARNINGS WERE GOOD PAID EVERYONE'S WATCHING FOR NVIDIA TO SEE IF THEY CAN KEEP UP WITH THAT. >> WE'VE SEEN HOW BASICALLY BULLISH THE MARKET WAS AND A FEW CONCERNS WITHIN THE MARKET BEGINNING OF AUGUST WE SAW SIGNIFICANT SELLOFF AND WE'VE SEEN THAT SINCE JULY. WHAT DO FLOWS TELL YOU IN TERMS OF PEOPLE'S APPETITE TO GET

INTO A COMPANY WITH SUCH A HIGH MARKET CAP. EMILY: PEOPLE ARE BUYING THE DIP. IS IT FINALLY TIME TO PIVOT OUT OF BIG TECH BUT WE ARE SEEING PEOPLE THE ROTATION TO SMALL CAPS THAT'S REALLY NOT A THEME ANYMORE. INVESTORS HAVE THIS APPETITE TO HIDE OUT IN BIG TECH AMID CONCERNS THE ECONOMY IS SLOWING. QLD, THIS IS AN ETF THAT GOES TO ASK -- 2X QQQ TAKING INFLOWS NEARLY EVERY DAY FOR THE LAST TWO WEEKS AND IN THE LAST SESSION IT TOOK ABOUT $250 MILLION IN WHICH IS THE BIGGEST FLOW SINCE APRIL SO EVEN AFTER THE SELLOFF WE SAW TO START AUGUST WE ARE STILL SEEING THAT APPETITE. >> SEEING SOME LONG POSITIONS IN THIS MARKET.

LET'S TALK ABOUT ONE OF THOSE LINES. ONE OF THE KEY HOLDERS OF NVIDIA. PORTFOLIO MANAGER T. ROWE PRICE. HOLDING ABOUT 2% OF NVIDIA SHARES OUTSTANDING. THE SEVENTH LARGEST INDIVIDUAL SHAREHOLDER IS AN OVERALL COMPANY BUT IN YOUR FUND FOR SCIENCE AND TECHNOLOGY FUND. WHY REMAIN BULLISH ON NVIDIA? >> I THINK THIS A LOT OF REASONS STILL LIKE THE COMPANY. THEY'VE BEEN MOVING ABOUT 1000 OVER THE LAST TWO YEARS AND CONTINUE TO BE LEADERS IN THE SPACE AND AI IS RIGHT NOW TOO IMPORTANT OF AN AREA TO LET UP THE GAS. SO I THINK LARGE COMPANIES WILL STILL SPEND. THERE'S A TENSION OF WHAT TO SPENDING MORE MEAN AND DOES THAT MEAN EXPECTATIONS AND THAT'S WHAT MARKETS WILL BE FOCUSED ON GOING FORWARD.

THERE'S A LOT OF GREAT REASONS TO LIKE THE STOCK LONG-TERM. AT THE SAME TIME, YOU HAVE TO REMEMBER SEMICONDUCTORS ARE CYCLICAL AND THEY ARE ALSO SECULAR. THAT'S PART OF OUR JOB TO NAVIGATE THE ENVIRONMENT. CAROLINE: BRACE YOURSELF FOR POTENTIAL SHORT-TERM VOLATILITY LONGER-TERM STILL BULLISH ON MONEY COMING INTO THE LIKES OF NVIDIA, BUT DOES IT BROADEN OUT? IT FEELS LIKE THEY ARE THE ONLY PICKS AND SHOVELS GAME IN TOWN. HIS BROAD, DOING WELL, WHAT YOU MAKE OF NVIDIA THE MAIN PLACE TO WIN ON AI. >> THE REASON WHY NVIDIA HAS BEEN SO GOOD IS BECAUSE IT'S A PLATFORM. IT'S NOT JUST THE CHAIRMAN, SO THEY HAVE A BIG ECOSYSTEM, RIDING ON THEIR TONE AND SO

IT'S CALLED BUILT, THE ECOSYSTEM AND PLATFORM. THAT'S WHY IT'S SUCH A DEFENSIBLE BUSINESS. AND IT'S AVAILABLE EVERYWHERE. YOU CAN HAVE IT, AND THEY GOT SUPPORT FOR THEIR CHIPS. SO, I THINK THAT'S LARGELY THE REASON. IT COULD BE CHANGING IN TERMS OF THE COMPLEXION GOING FORWARD. AMONG THE HYPER SCALE PLAYERS. THEY CAN DO A LOT OF THEIR OWN SOFTWARE, SO I THINK THERE WILL ALWAYS BE A BALANCE BETWEEN A HYPER SCALE MAKER OF CHIPS WITH SIGNIFICANT VOLUMES. YOU SEE IN GOOGLE WITH THEIR TPU AND THAT SEARCH PRAY. I THINK THAT WILL CONTINUE IN OTHER WAYS. >> I LIKE THAT POINT YOU ARE MAKING, AND WE HEARD OUTDATED TRACKER WAS SAYING THE SAME THING, THAT THERE IS A WILLINGNESS ON A CAPITAL EXPENDITURE PERSPECTIVE FROM

HYPER SCALARS YOU'RE IN A NUMBER OF THESE. ALPHABET AND META SEEMS TO MANAGE TWO NEW WANTS THE ARGUMENT OF WHY THEY PUT MONEY IN THEIR WARES ALPHABET PEOPLE WORRIED ABOUT SPENDING CAPEX AT ALL COSTS. WHAT YOU MAKE OF THE HYPER SCALARS DECISION TO KEEP ON PULLING MONEY IN? >> I THINK MARK DID A NICE JOB OF ILLUMINATING WHY HE SPENT SO MUCH IN AI WITH PERSONALIZED CHATBOTS AND HOW THEY WENT THROUGH THE PLATFORM. I THINK YOU SHOULDN'T COUNT GOOGLE OUT OF THE SAME TIME. WE'VE A LOT OF AI EXPERTISE AND LEADERS IN THE FIELD. AND SO I THINK THAT IT'S TOO EARLY TO CALL WHO WILL BE THE WINNER OR LOSER. THEY ALL HAVE BIG PLATFORMS AND USER BASES OR THEY CAN SCALE THEIR INVESTMENTS.

I THINK IT'S TOO EARLY TO CALL WHOSE GET A WIN OR LOSE BUT AT THE SAME TIME THEY HAVE REALLY GREAT BUSINESSES. CAROLINE: RETURN ON AI IS THIS HORRIBLE ACRONYM COMING INTO THE MARKETPLACE. WHAT YOU MAKE OF THE RETURNS, THAT WE NEED TO START SEEING. YOU ARE A KEY HOLDER IN APPLE AGAIN T. ROWE PRICE OVERALL BUT THE SEVENTH BIGGEST HOLDER. THAT COMPANY AGAIN MANAGING TO TELL US WHY THEY CAN BE IN AI BAT, WHERE DOES THE MONEY END UP FLOWING IN TERMS OF RETURN ON AI INVESTMENT? >> I THINK WE WILL BE LOOKING FOR RETURN ON AI INVESTMENT. APPLES AND A GREAT POSITION BECAUSE THEY'RE KIND OF AN ECOSYSTEM OWNER. THEY CAN INTEGRATE GREAT TECHNOLOGIES INTO THEIR PHONES COME INTO THEIR HARDWARE. AND JUST LIKE THEY DID WITH GOOGLE SEARCH.

THEY DEFINITELY BENEFIT FROM USERS USING GOOGLE SEARCH. SO, CHATGPT IS THE SAME THING GOING FORWARD. THEY DON'T HAVE TO DEVELOP THE FRONTIER MODEL. THEY CAN INTEGRATE IT WITH THEIR PHONES. YOU CAN ARGUE WHETHER LONG-TERM A COMPANY SHOULD OWN THE FRONTIER MODEL HERE, BUT RHINO APPLE STRATEGY IS FOCUSED ON WHAT THEY ARE REALLY GOOD AT, WHICH I THINK IS DESIGN OF THE PRODUCTS AND SERVICES. SO, IT'S AN INTERESTING WAY IN THIS K.I.A. PROLIFERATION HERE. >> IT'S INTERESTING YOU ARE IN SALESFORCE, WHICH HAS BEEN A COMPANY TRYING TO SHOW OFF ITS AI PROWESS. DO YOU THINK IT CAN REAP REWARDS >> FROM ITS AI INVESTMENT? I THINK SALESFORCE IS REALLY STICKY SOFTWARE COMPANY. IT SOUNDED LIKE THEY HAVE A GOOD MODE. THEY HAVE AI PRODUCTS COMING

OUT. THE QUESTION IS HOW THEY PRICE THEM, HOW DO THEY DRAG THAT FOR THEIR CUSTOMERS. THE WHOLE SPACE IS GOING THROUGH THIS. IF AI WORKS TOO WELL IT MIGHT NOT HAVE MANY SEATS YOU NEED. I THINK THERE'S A STYLE BEING FIGURED OUT BUT I DO THINK IF YOU LOOK AT STARTUPS THAT ARE IN THE SPACE IT CAN BE HARD FOR THEM TO GET INTO LARGE ENTERPRISE. JUST BECAUSE YOU LET THEM INTO THE WHOLE SYSTEM AND THAT COULD BE A PRETTY BIG MOVE. CAROLINE: THERE HAVE BEEN OTHER COMPANIES WE HAVE BEEN QUESTIONING HOW MUCH THEY CAN ALIGN THEMSELVES WITH THE AI TAILWINDS. ONE OF THEM IS CISCO FOR EXAMPLE. DELL INITIALLY WE THOUGHT REALLY IN THIS ECOSYSTEM THEY WILL BE THERE FOR THE SERVICE AND NETWORKING. LET ME GET CAUGHT OFF GUARD AND FEEL THEY ARE NOT SO

WELL-PLACED. WHAT YOU THINK OF THE BOTTOMING OUT STORY? TONY: WHAT WE'VE SEEN IS LEGACY TECH HAS REINVENTED ITSELF, IN AI BENEFICIARY. CISCO HAS BEEN LARGELY NOT ON THE AI BENEFICIARY LIST. THEY RECENTLY HAD SOME AI REVENUE COMPANIES THROUGH THE BUSINESS BOTTOMING. IT'S A VALUE IDEA. IT'S GOT A LOT OF GOOD AMOUNT OF CASH FLOW AND DIVIDEND YIELD SO FROM THAT ASPECTS IT ADDS TO THE PORTFOLIO THAT THE REST OF THE TECH STOCKS MIGHT NOT OFFER SO I THINK THERE'S A PLACE FOR VARIOUS STOCKS IN PORTFOLIO CONSTRUCTION AND WITH BONDING FUNDAMENTALS POTENTIALLY ATTRACTIVE VALUATION IT COULD BE GOOD. >> YOU'VE BEEN GREAT AT ARTICULATE IN WHY YOU BELIEVE

AI IS SUCH A WINNING STORY, BUT JUXTAPOSE THAT WITH THE OVERALL MACRO PICTURE. WE SEE THE MARKET GET HIT ON THE FACT WHETHER OR NOT WE HAVE INTEREST RATE CUTS. HOW MUCH DO YOU FACTOR THAT INTO THE HERE AND NOW LOOKING AT A PORTFOLIO ALLOCATION? TONY: IT IS AN AREA YOU CANNOT IGNORE. THE MACRO IS SUPER IMPORTANT, JUST BE AWARE OF WHAT'S GOING ON TOP DOWN. AT THE SAME TIME, WE TAKE IT STOCK BY STOCK AND LOOK AT WHAT EXPECTATIONS ARE LIKE, WHETHER THEY BEAT EXPECTATIONS, HOW WELL A COMPANY IS POSITIONED. SO, NO MATTER WHAT DIRECTION THE MACRO IS GOING, YOU SHOULD BE ABLE TO CREATE ALPHA EITHER WAY BY RELATIVE SELECTION OF STOCKS. AND SO, YOU DON'T WANT ANYTHING ABOUT NVIDIA. A LOT OF IT IS GOING TO BE A REALLY BIG BREAK HERE. WE HAVEN'T HAD THIS MUCH IN TERMS OF OUR WE NEAR THE SINGLE.

PEAK OR WILL IT CONTINUE. WE DO A LOT OF WORK TO UNDERSTAND WHERE THESE ARE POSITIONED AND THINK ABOUT THE SETUP OF THE STOCK. CAROLINE: YOU'RE MANAGING THE SCIENCE AND TECHNOLOGY FUND. DOES IT SUDDENLY AMAZE YOU THE WHOLE WORLD NOW THINKS NVIDIA IS A MACRO MOMENT, ITS EARNINGS MIGHT DICTATE THE REST THE BENCHMARKS. TONY: IT'S A PHENOMENAL MOMENT. THE STOCK HAS BEEN AMAZING. OUR MEMBER STARTED COVERING IT ABOUT SEVEN OR EIGHT YEARS AGO AND EVERYONE HAS UNDERESTIMATED THE COMPANY GOING THROUGH MULTIPLE CYCLES AND SO IT'S BEEN PHENOMENAL. THEY OFFER SO MUCH VALUE AND AND WE'VE SEEN THIS KIND OF AI VISION PLAY OUT AND SO I THINK EVERYONE RECOGNIZES IT AND SO IT IS PRETTY PHENOMENAL.

I THINK PART OF THE REASON WHY NVIDIA IS SO IMPORTANT IS THERE ARE AI MULTIPLIERS IN THE ECONOMY, AND A LOT OF THAT BECAUSE NVIDIA IS DOING WELL, AND THERE IS THIS IDEA OF LONG-TERM VALUE CREATION, PRODUCTIVITY DRIVING THROUGH THE ECONOMY. SO, I THINK IT'S A BIG MOMENT FOR THE MARKET FOR SURE. WE ARE EXCITED TO SEE WHAT HAPPENS NEXT. >> POLITICAL RISK IN ANY WAY AFFECT THAT? POLITICAL RISK IN ANY WAY AFFECT THAT? THE MACRO RISK? CAROLINE: THE POLITICS, THE ELEMENT, THE CHANGE IN THE WHITE HOUSE, WITH THAT IN ANY WAY CHANGE THE INNOVATION FOCUS? TONY: IT'S HARD TO CALL POLITICS, I THINK. THERE'S A TENSION OF HOW MUCH YOU REGULATE AI, AND NVIDIA IS SUCH A DOMINANT PLAYER, PERHAPS WERE PUSHING COMPUTING VERSUS

WE ARE IN AN AI SPACE RACE WITH OTHER COUNTRIES, AND AT THE SAME TIME, WE'RE TRYING TO STYMIE CHINA'S EFFORTS TO DEVELOP AI. I THINK WE CAN ALSO... IT'S HARD TO THEN ALSO RESTRICT HER OWN COMPANIES. MY VIEW IS THE SPACE IS MOVING SO FAST. WE ARE TRYING TO PUSH THE ENVELOPE HERE. I DO NOT THINK POLITICS WILL REALLY CHANGE THAT, GIVEN HOW IMPORTANT AI IS TO THE ECONOMY IN THE FUTURE. >> WE APPRECIATE YOUR TIME TODAY. SUCH AN IMPORTANT SHAREHOLDER AND INDEED AI. SCIENCE AND TECHNOLOGY FUND STAY WELL. THERE'S AN UPDATE ON A STORY WE'VE BEEN FOLLOWING. IT'S HOW HE AND SEARCH AND RESCUE TEAM SAY THEY HAVE ACHIEVED A FIFTH BODY FROM THE SUNKEN YACHT OFF OF SICILY.

MIKE LYNCH AND MORGAN STANLEY INTERNATIONAL CHAIR ARE AMONG THOSE FEARED TO HAVE DIED. A FIFTH BODY WAS RECOVERED THURSDAY MORNING AS SEARCH RESUMES FOR A THIRD DAY ACCORDING TO ITALIAN OFFICIAL. NO STATEMENTS IDENTIFYING THE BODIES HAVE SO FAR BEEN ISSUED OFFICIALLY. NOW WE MOVE ON AND COMING UP WE WILL BE ASSESSING PELOTON FOR YOU. SHARES ON THE UP AND UP AS MAY BE WE SEE SIGNS OF A TURNAROUND PAYING OFF. DETAILS NEXT, THIS IS BLOOMBERG. ♪ CAROLINE: PLENTY OF EARNINGS TO BE DIGESTING LET'S LOOK AT ZOOM AND SNOWFLAKE. ZOOM ON THE UP MORE THAN 12% HIGHER THE BIGGEST MOVE SINCE NOVEMBER OF 2022. THE CFO WAS HANDING OVER THE

REINS SINK SHALL BE MOVING ON FROM THE BUSINESS. SNOWFLAKE, THE POLAR OPPOSITE PERSPECTIVE, FORECAST NOT LIVING UP TO EXPECTATIONS, WORRYING ABOUT AI. SNOWFLAKE FIRST AND FOREMOST. WHAT'S THE WORRY, THE ANXIETY HERE? >> WHAT'S INTERESTING IS IT'S A SIMILAR SET OF CONCERNS. CAN YOU EXPAND FROM A HIT CORE PRODUCT. SNOWFLAKE WOULD BE IN WAREHOUSING TO A NEW SET OF PRODUCTS, EXPAND YOUR PORTFOLIO, ESPECIALLY WITH AI. AS IT RELATES TO SNOWFLAKE, IT IS THAT CONCERN THAT YOU ARE A HIT VIRAL MARKETING, YEARS AGO, BUT A LOT OF FOLKS WANT THE AI PRODUCTS NOW. THESE ARE THINGS WE ASSOCIATE MORE WITH DATA BRICKS, INCREASINGLY WITH MICROSOFT, SO SNOWFLAKE IS WORKING TO EXPAND.

IT HAS A LOT OF PRODUCTS THIS YEAR. WHAT SET OFF INVESTORS IS THEM SAYING LAST NIGHT MAYBE WE WON'T SEE MONEY FROM THEM UNTIL FISCAL 2026 AND THAT'S FURTHER OUT THAN FOLKS ARE HOPING. CAROLINE: I WANT TO PIVOT TO A STORY YOU'VE BEEN CHASING THROUGHOUT WHICH IS AUTODESK AND THE ACCOUNTING RISKS THERE. CAN YOU GET US UP TO SPEED ON WHAT THE ACTIVIST INVESTOR IS SAYING. >> ESSENTIALLY THEY HAD AN ISSUE WITH THEIR ACCOUNTING CAUSING DISRUPTION. AND NOW ACTIVIST INVESTOR IS SAYING THERE HAS TO BE SOME ACCOUNTABILITY. THIS MORNING THEY HAVE A STATEMENT SAYING THEY NEED TO HOLD MANAGEMENT ACCOUNTABLE AND REALLY ASK THEMSELVES IF THE CEO WHO INTERESTINGLY ENOUGH HAS BEEN THERE SINCE A PREVIOUS

ACTIVIST EPISODE IS STILL THE RIGHT GUY FOR THE JOB. CAROLINE: I KNOW THAT'S ONE YOU'VE BEEN BREAKING A LOT OF NEWS ON. WE THANK YOU SO MUCH ON THOSE STOCKS. STICKING WITH THE EARNINGS STORY. PELOTON BEATING ESTIMATES ON THE QUARTER JUST ANNOUNCED AMID A TURNAROUND EFFORT THAT DOES LOOK LIKE IT'S WORKING. THE OUTLOOK FOR REVENUE IS A LITTLE BIT OF A CONCERN. THIS IS THE COMPANY IS SEARCHING FOR A NEW CEO. MANAGING DIRECTOR AT WOLF RESEARCH JOINS US. YOU ARE SORT OF SAYING THEY ARE ROLLING ALONG MORE BROADLY, WHAT DID YOU MAKE OF THE FOURTH QUARTER VERSUS THE FIRST QUARTER FORECAST? >> FIRST OF ALL THANKS FOR HAVING ME. I GUESS THE RESULTS FOR THE FOURTH QUARTER WERE PRETTY GOOD.

PARTLY IN OUR VIEW BECAUSE THE GUIDANCE ITSELF WAS CONSERVATIVE, BUT ALSO THEY DID A LOT OF COST-CUTTING, AND SO REVENUE, EBIT, AS WELL AS CONNECTED FITNESS NUMBERS CAME IN RELATIVELY IN LINE OR BETTER. SLIGHTLY SOFTER, BUT NOTHING TO WORRY ABOUT. THE GUIDANCE CLEARLY WAS LOWER THAN EXPECTED ON ALL FRONTS ON THE TOP LINE, BUT BETTER LARGELY BECAUSE OF THE RESTRUCTURING. OUR REVIEW IS THIS WILL BE A VERY DIFFICULT TRANSITION. YOU DON'T THINK YOU CAN GROW BY CUTTING COSTS PER. YOU'LL HAVE TO EVENTUALLY SHOW TOPLINE GROWTH, AND THEY ARE NOT TOPPING OUT OF THE MARKET. DOWN 9% DECLINE IN YEAR-OVER-YEAR REVENUE. THAT'S NOT A GOOD SIGN. WHETHER IT IS MACRO ARE PULLING

BACK ON THEIR MARKETING SPEND BECAUSE THEY HAVE TO END WHETHER IT IS RE-STRATEGIZING AS THE NEW CEO COMES IN AND THERE'S THIS LEADERSHIP CHANGE IT'S JUST NOT A GOOD SIGN. CAROLINE: WHERE SHOULD THEY BE LEANING INTO? IS IT MORE APP USERS, MORE ONLINE SUBSCRIPTION? SHOULD THEY BACK AWAY FROM THE HARDWARE OR DO THEY NEED TO RE-UP SOME OF THE MARKETING AROUND THE HARDWARE WHICH FOR MANY THERE UP INTO MANY RECALLS. SHWETA: IT'S A VERY TOUGH CHALLENGE. THERE HARDWARE IS PREMIUM QUALITY OR PREMIUM PRICED ITS WHY THEY ARE GOING THROUGH WITH THE RENTAL AS WELL AS THE NEW DUST THE REFURBISHED. WE THINK THEY SHOULD FOCUS MORE ON THE APP SUBSCRIPTION PIECE EVEN IF THE CHURN IS HIGHER JUST BECAUSE OF THE MARGIN

PROFILE. IF THE APPLE PRODUCT EXPERIENCE IS VERY GOOD AND SUPERIOR TO EVERYTHING ELSE IN THE MARKET, EVEN IF IT IS A CROWDED MARKET, THEY COULD GAIN SHARE AND SHOW SOME REAL MARGIN EXPANSION WHILE THEY DELIVER PRODUCT EXPANSION, WHETHER IT'S IN INTERNATIONAL MARKETS OR IN NORTH AMERICA. THE OTHER QUESTION WITH HARDWARE IS: IS THERE ANY WAY THEY CAN BRING THEIR PRICES DOWN FOR HARDWARE, WHETHER IT IS THROUGH SUPPLY CHAIN CHANGES OR PRODUCT INNOVATION OR TECHNOLOGY INNOVATION TO DRIVE GREATER ADOPTION? AN AVERAGE CONSUMER, IT COULD BE PROHIBITIVE. >> THERE IN LIES THE ISSUE: IS SUDDENLY IT WAS A LUXURY ONE. THE CEO, YOU'RE EXPECTING THAT ANYTIME SOON? >> YES, THEY ARE EXPECTING TO MAKE AN ANNOUNCEMENT BEFORE OR

AT LEAST DURING THE NEXT EARNINGS QUARTER AND EARNINGS CALL, SO THERE WILL BE ANOTHER QUARTER. WE THINK THEY MAY LEAN TOWARDS RETAIL CEO. I AM NOT SURE AND DO NOT WANT TO SPECULATE THAT I WOULD NOT BE SURPRISED IF A RETAIL CEO IS BROUGHT ON BOARD. >> GREAT TO HAVE YOU ON. TALKING ABOUT SUCCESSION PLANNING, DISNEY HAS A NEW CHAIR IN ITS SUCCESSION PLAN COMMITTEE. JAMES GORMAN WILL TAKE THE LEAD IN THE SEARCH FOR BOB IGER'S SUCCESSOR. OVERSAW THE RECENT SUCCESSION PROCESS AT MORGAN STANLEY. COMING UP, GROWTH OVER PROFITS AS IT BETS BIG ON EV SPRAYED. WE WILL HEAR FROM THE CFO. CAROLINE: TIME NOW FOR TALKING TECH. BAIDU SALES STALL, REVENUE FOR THE THREE MONTHS BECAME BELOW

ESTIMATES THIS IS THE COMPANY TRANSITIONS FROM ADS TO AI AMID ECONOMIC DOWNTURN IN CHINA. AND THE BAIDU FOUNDER WILL WOMAN HAS HOPES OF EQUIVALENT TO CHATGPT. SHALL ME MAY BE UP FOR A SALES BOOST WITH REVENUE GROWTH TO THE MID-20% LEVEL. HEALTH PIPES PREMIUM PHONES. ACCORDING TO BLOOMBERG INTELLIGENCE THE TECH GIANT MAY EXPERIENCE TAILWINDS FROM ITS EXPANSION OF OVERSEAS CHANNELS, INTERNET SERVICES AND ITS EEEV PUSH. >> IF YOU LOOK AT OUR DELIVERY RIGHT NOW WE ARE OVER 10,000 VEHICLES WE DELIVER IN JUNE AND IN JULY MOST LIKELY THE OLD BUSINESS AS WELL SO WE'VE BEEN UNABLE TO SCALE OUR PRODUCTION FACILITY AS WELL AS AIRED DELIVERY CAPABILITIES. CAROLINE:

COMING UP, WE WILL BE JOINED BY THE SENIOR CRYPTO ANALYST TO WALK US THROUGH THE COMPANY'S LATEST INSIGHTS INTO THE WORLD OF VENTURE CAPITAL IN THE CRYPTO SPACE. FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. A QUICK CHECK ON THESE MARKETS, INDIVIDUAL MOVERS START OVER AT PARAMOUNT, AND WE HAVE TO REFERENCE IN ANOTHER UP BID. COMING IN FROM EDGAR BRONFMAN JUNIOR, RAISING THE OFFER FOR THE CBS PARENT AND GOING TO PEOPLE FAMILIAR WITH THE PROPOSAL. IT'S ALL ABOUT TRYING TO UPSET WHAT IS ALREADY IN -- A PLAN OF THE MERGER ON THE INDEPENDENT PRODUCER SKY DANCE MEDIA, SO WE WILL SEE HOW THAT BEARS OUT. SYNOPSYS IS OFF.

THIS AS WE SEE ITS THIRD-QUARTER REVENUE PROFIT RISING AMID THIS RACE TO AI. MANY HAVE LIKE THE SET OF NUMBERS OVERALL. SOLID RESULTS KEYBANK SAYING THEY WERE POSITIVE BUT THAT THE REVENUE BEAT WAS SMALLER THAN OUR PREVIEWED SCENARIO BROADCOM DOING WELL SEEMS TO BE A NOTE OUT FROM J.P. MORGAN TALKING ABOUT HOW BROADCOM IS MANAGING TO SIGN ON SOME KEY CLIENTS WHEN IT COMES TO AI PROVISION. MEANWHILE WE ALSO WANT TO KEEP AN EYE ON THE WORLD OF CRYPTO WHILE OVERALL BENCHMARKS ARE ON THE DOWNSIDE THE NASDAQ UP. S&P 500 NEAR THAT ALL-TIME HIGH BACK LOWER AS WE I JAY POWELL AND WHAT'S HAPPENING AT JACKSON HOLE TOMORROW. WITHIN THAT RISK OF TONE BITCOIN IS OFF BY ONE AND ONE

QUARTER PERCENT. STILL AT THE $60,000 LEVEL, BUT LET'S TALK ABOUT THE INNER WORKINGS IN THE CRYPTO SPEAKS -- SPACE. HIRING 1000 PEOPLE THIS YEAR, WITH MANY EARMARKED FOR COMPLIANCE ROLES. SINCE THE ANNUAL SPENDING TO BE REGULATORY REQUIREMENTS HAS BEEN BOOSTED, INCLUDING U.S. OVERSIGHT UNDER A PLEA DEAL, NOW TOPPING $200 MILLION. REALLY, THIS IS AS WE SEE A NEW LEADERSHIP REALLY TRY TO MAKE SURE THEY ARE TAKING SERIOUSLY BY REGULATOR AND TAKING MORE BOXES. SONALI: YOU HAD CZ STEP DOWN IN THE WAKE OF THAT PLEA DEAL. THEY HAVE MONITORS HERE ASSIGNED TO THEM FROM THE U.S. DEPARTMENT OF JUSTICE AND ALSO THROUGH THE TREASURY'S FINANCIAL CRIMES ENFORCEMENT

NETWORK. WHAT HE DID NOT SAY TO US IS WHETHER HE MET WITH THE SEC HERE AS WELL WHO IS SUING BINANCE. THIS $200 MILLION FIGURE IS AN INCREASE OVER THE LAST COUPLE OF YEARS AND HE TOLD US HE EXPECTS TO INCREASE THAT FIGURE MORE AND OF THE THOUSAND PEOPLE HE'S HIRED IN THE PAST YEAR, MORE THAN 500 ARE SOLELY DEDICATED TO COMPLIANCE AND REGULATORY MATTERS. THAT NUMBER WILL GO UP TO ABOUT 700. HUNDREDS BEING HIRED FOR COMPLIANCE SO WHEN IT COMES TO THE GOALS BINANCE HAS, COMPLIANCE IS AMONG THEM. THEY ARE ALSO PRIVATELY HELD AND CZ IS A MAJOR SHAREHOLDER PAGE YOU CAN LOOK AT COINBASE STOCK AND KNOW HOW WELL THEY ARE DOING IN THE CRYPTO BOOM. HOW MUCH IS 200 MILLION

COMPARED TO WHAT THEY'VE DONE THIS YEAR. THEY WANT TO CLEAR UP THESE COMPLIANCE ISSUES. THEY ARE SEEKING TO GROW AROUND THE WORLD. WE DON'T UNDERSTAND QUITE WHAT THEIR STRATEGY WILL BE IN THE U.S. BUT THE COMPLIANCE ISSUES BEING CLEARED UP HERE WILL SET THE STAGE FOR FURTHER CLARITY ON WHAT THAT COULD LOOK LIKE IN YEARS AHEAD. CAROLINE: THE NEW CEO SAYS HE'S A REGULATOR AT HEART. SONALI: HE HAS A LOT OF EXPERIENCE, BUT YOU CANNOT SHAKE THIS IDEA THAT YOU STILL HAVE CZ AS A MAJOR SHAREHOLDER. HE'S NOT ALLOWED TO BE INVOLVED IN THE COMPANY BUT IS STILL ABLE TO HAVE THESE FINANCIAL CLAIMS OVER THERE. ULTIMATELY PAID IN THE PAST, HE'S RECEIVED DIVIDENDS THROUGH THAT STAKE.

DON'T BELIEVE HE HAS HAD ANY THIS YEAR, BUT IT'S UNCLEAR WHAT THAT WOULD LOOK LIKE FOR THE FUTURE WITH THE PARAMETERS AROUND IT. SO, CERTAINLY A FASCINATING THING. I KNOW YOU'RE WATCHING SOMETHING ELSE HERE, THIS IS A FASCINATING ONE BECAUSE CLAIMS BEING RESOLVED ALL OVER THE PLACE, INCLUDING WITH THEIR PROMOTERS, JIMMY BUTLER, THE MIAMI HEAT BASKETBALL STAR, AND BEN ARMSTRONG, A YOUTUBE INFLUENCER, AGREEING TO RESOLVE CLAIMS TO THE TUNE OF 340,000 -- 340 THOUSAND DOLLARS FROM A CLASS-ACTION LAWSUIT. BUT ALSO CITES THAT DEPARTMENT OF JUSTICE ISSUE IN THE SEC ISSUES THEY HAVE BEEN FACING. AND THIS IDEA THAT CLIENTS HAVE BEEN PRIVY TO BUYING

UNREGISTERED SECURITIES BY THE QUEST HERE OF THESE PROMOTERS THAT REALLY HELPED PUSH PEOPLE INTO THESE TOKENS. >> CERTAINLY HIT FOR A FEW INFLUENCERS OVER THE YEARS. WE ACTUALLY WANT TO STICK WITH CRYPTO AND THE FUNDRAISING ENVIRONMENT BECAUSE IT'S INCREASING IN THE SECOND QUARTER OF THIS YEAR. START UPS SECURED $2.7 BILLION ACROSS 503 DEALS BUT THERE WAS A 12.5% DECLINE IN DEAL VOLUME COMPARED WITH THE PREVIOUS QUARTER. BRINGING IN OUR SENIOR CRYPTO ANALYST. WHAT'S HAPPENING HERE, A FEW ROUNDS OF BUSINESSES ARE GETTING BIGGER CHECKS? >> THANK YOU FOR HAVING ME AGAIN. LIKE YOU SAID ALTHOUGH DEAL VALUE IS DOWN, WHAT THIS MEANS IS INVESTORS ARE WRITING LARGER CHECKS TO A SMALL NUMBER OF

PROJECTS. SO WHAT YOU'RE SEEING IS THE SITUATION CAPITAL TO THE FACT THAT TEAMS INVESTORS THINK OUR BUILDING PROJECTS THAT HAVE REAL VALUE. I THINK ALSO WE LIKE THE TOTAL DEAL VALUE BEING INVESTED. PART OF WHAT'S DRIVING IS THIS IS THE CRYPTO FUNDS IN 2021 AND 22 ARE NEAR THE END OF THE DEPLOYMENT RISK SO THERE'S ALSO NEW CAPITAL AND FUNDS COMING TO MARKET AS WELL SO WE EXPECT MORE CAPITAL TO BE INVESTED OVER THE NEXT YEAR TO BECOME MORE. WE KINDA SAW THAT IN THE LAST CYCLE. >> IT'S NOT TO BE MUSIC TO MANY PEOPLE'S EARS THAT THEY ARE FIGHTING A TIMELINE ISSUE AND WILL HAVE TO START ALLOCATING AS QUICKLY AS POSSIBLE. WHERE ARE THEY ALLOCATING? WHERE ARE THEY SEEING VALUE BEING CREATED. ROBERT:

RIGHT NOW WE'VE BEEN SEEING A LOT OF CAPITAL GO INTO INFRASTRUCTURE. EVEN LAST QUARTER, WE SAW $200 MILLION PLUS GOING INTO BLOCKCHAINS. I THINK THE CHALLENGE IS, FROM OUR VIEW, THERE'S WAY TOO MUCH CAPITAL GOING INTO INFRASTRUCTURE AND NOT ENOUGH GOING INTO APPLICATIONS. YOU GO BACK TWO CYCLES AGO, MOST OF THE CAPITAL WENT INTO ALLOCATIONS. THE LAST CYCLE WAS FTX AND BLOCKFI AND CELSIUS. I THINK AT THE END OF THE DAY, YOU STILL HAVE TO GO TO A YEAR-END USERS ARE. INVESTORS ARE NOT FUNDING PROJECTS AND APPLICATIONS OF SERVICES THAT ARE SERVING END-USERS, WHETHER THEY'RE RETAIL END-USERS OR BUSINESS END-USERS. MOST OF IT'S GOING TO INFRASTRUCTURE, AND WE SEE WAY TOO MUCH CAPITAL INTO THAT AREA. BUT I THINK THAT WILL CHANGE IN THE NEXT YEAR OR TWO. YOU'LL SEE

MORE INVESTMENT DOLLARS GO INTO THE APPLICATION LAYERS. CAROLINE: WHY IS THERE AN -- WHY IS THERE A RETICENCE? ROBERT: WITH THE LAST CYCLE, WE SAW WHAT HAPPENED. THERE'S A HUGE RETICENCE TO GET INTO THAT BECAUSE OF WHAT HAPPENED. THIS ALSO IS A REGULATORY OVERHANG. A LOT OF THESE PROJECTS HAVE TOKENS ASSOCIATED WITH IT, BUT IT DOESN'T NECESSARILY HAVE TO BE PAID. WE SAW THEM RAISE $150 BILLION ROUND IN MAY AND LOOKING A DECENTRALIZED VERSION OF TWITTER. I THINK THAT'S KIND OF THE BELLWETHER. WE WILL SEE THEY ARE SERVING END-USERS WHO ARE USING SOCIAL MEDIA, FOR INSTANCE. CAROLINE: IT'S ADJUSTING. YOU MENTION TOKENS AND NERVOUSNESS.

IT WAS IN THE PRESS THE DAY BEFORE THE MCDONALD'S AND INSTAGRAM SEEM TO GET THE HACK REGARDING A SCAMMER FROM A CRYPTOCURRENCY NAMED GRIMACE THAT WAS INVOLVED. BUT HOW MUCH WHEN WE ARE SEEING THESE VCS PUTTING MONEY TO WORK ARE THEY GENERALLY JUST WANTING EQUITY ARE ANY OF THEM DEPLOYING CAPITAL INTO TOKENS AS PART OF THEIR PLAY OR OF CAPITAL STRUCTURE? ROBERT: THERE'S BEEN A SHIFT TO INVEST IN MORE EQUITY DEALS VERSUS ONLY TOKEN DEALS WE SAW IN THE LAST CYCLE BUT HONESTLY I THINK A LOT OF INVESTMENTS ARE STILL GOING SO WE'RE LOOKING AT 70% PLUS ON THE PROJECTS WITH SOME KIND OF TOKEN WHETHER IT'S AN EQUITY DEAL WHICH IS PROMISED FOR FUTURE TOKENS. SO THERE'S STILL A LOT OF IT.

OUT THERE. I THINK WHAT INVESTORS ARE BETTING ON IS THESE TOKENS WILL HAVE UTILITY, AND IF THEY HAVE UTILITY, THEN THEY ARE OUT OF THE PURVIEW OF SECURITY. WE JUST DON'T KNOW YET. IT'S STILL REALLY EARLY, BUT THERE ARE INVESTMENTS FOR TOKENS IN THE CYCLE. >> YOU'VE BEEN DOING A DEEP DIVE ON HOW AIN SPHERES INTERSECT. WE WOULD LOVE FOR YOU TO BE ON WHEN WE GET THOSE PAID BRILLIANT TO HAVE YOU ON WITH THE LATEST ON VC PAID APPLE'S APP STORE SHAKEUP. WHAT'S NEXT AT THE COMPANY'S HEAD OF APPS TO PARTS. LOOKING ALSO AT THE CONSUMER WORLD. PELOTON PAID WE HAVE TO CHECK THIS -- TRACKED THE STOCK. IT'S NOT WORTH AS MUCH AS IT WAS BEFORE. 27% AFTER ITS FOURTH-QUARTER BEAT EXPECTATIONS.

THIS IS BLOOMBERG TECHNOLOGY. ♪ TECHNOLOGY PODCAST. ONLINE ON APPLE, SPOTIFY AND I HARD. THIS IS BLOOMBERG. AFTER A LITANY OF BATTLES WITH REGULATORS OVER THE APP STORE, MATT FISHER WHO HAS RUN APPLE'S APP STORE BUSINESS SINCE 2010 IS LEAVING THE COMPANY ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER. HE'S BEEN A VETERAN OF THE BUSINESS FOR MORE THAN TWO DECADES. WHY MOVE ON MARK? MARK: THE VICE PRESIDENT OF THE APP STORE BUSINESS ACROSS APPLE'S PRODUCT GOING UP INCLUDING APPLE ARCADE IS LEAVING THE COMPANY IN OCTOBER. THIS IS PART OF A REORGANIZATION OF THE APP STORE BUSINESS. THE APP STORE LAUNCHED IN 2008 AND FOR THE BETTER PART OF THE APP STORE WAS THE ONLY GAME IN TOWN IF YOU WANTED AN

APPLICATION ON APPLE DEVICES. PER YOU WERE IN THEIR WALLED GARDEN AND HAD TO WORK IN THE PARAMETERS OF THE APP STORE RULES AND THE COMMISSION AND THE PAYMENT PLATFORMS. BUT THE EUROPEAN UNION AND OTHER REGULATORS AND DEVELOPERS PUSHED FOR APPLE TO OPEN UP SO THEY NEED TO CHANGE WITH THE TIMES, ESPECIALLY IF IT WANTS THE BUSINESS TO GROW. THEY'VE ESSENTIALLY SPLIT THE APP STORE ORGANIZATION IN THE COMPANY IN TWO. IT'S RELATED TO THE IN-HOUSE APP STORE, 199% OF PEOPLE WILL PROBABLY USE, AND ANOTHER TEAM DEDICATED TO THIRD-PARTY APP DISTRIBUTION, SO THAT'S ALTERNATIVE APP STORES AND PAYMENT METHODS AND TECHNOLOGIES. THOSE GROUPS ARE BEING RUN BY TWO YOUNGER APPLE EXECUTIVES. THEY'VE BEEN A BIG PART OF THIS.

FOR SEVERAL YEARS AND AS PART OF THAT, THEIR BOSS, AND APPLE FELLOW WHO IS ULTIMATELY RESPONSIBLE TO TIM COOK FOR THE APP STORE. HE'S LEADING IN THE OTHER TWO EXECUTIVES OR REPORT. >> PHIL SHILLER STAYS AND ULTIMATELY A LOT OF THIS IS TRYING TO CROSS THE TEES AND. THE EYES WHEN IT COMES TO REGULATORS. ULTIMATELY WILL THIS REORGANIZATION BE ABLE TO MAKE A MORE STREAMLINED AREA OF COMMUNICATION AT LEAST? MARK: WHAT THIS WILL DO IS INTERNALLY PUT MORE EMPHASIS ON WORKING WITH REGULATORS AND ACKNOWLEDGING THAT THE APP PARADIGM IS QUICKLY SHIFTING. APP DISTRIBUTION ON APPLE'S PLATFORMS IS NO LONGER GOING TO BE ONLY ABOUT THE APP STORE AND APPLE CAN NO LONGER BE STUBBORN ABOUT THAT.

IT HAS REALIZED THERE IS NO GOING BACK, AND THINGS ARE ONLY GOING TO CHANGE NOT ONLY IN THE EUROPEAN UNION, POTENTIALLY OTHER PLACES, BUT PROBABLY GLOBALLY OVER THE NEXT FIVE YEARS OR SO. SO, THAT NEEDS TO BE RE-ARCHITECTED, OR DEVELOPERS WILL PUSH BACK AGAINST APPLE. SO, THEY SORT OF ARE COMING FROM APPROACHING THIS FROM A POSITION OF STRENGTH, WHERE THEY WILL ENACT NEW CHANGES NOW AND PUT A BIGGER FOCUS ON APPLE DISTRIBUTION FOR THIRD-PARTY METHODS. THEY CAN'T AFFORD TO BE STUBBORN ABOUT THIS BECAUSE ULTIMATELY THEY WILL REDUCE REVENUE OVER TIME AND CREATE ISSUES FOR DEVELOPERS AND REGULATORS. I THINK IT'S A POSITIVE MOVE IN TERMS OF THE REORGANIZATION. MATT FISHER HAD BEEN DEALING

WITH THAT, HE HAD BEEN IN A LOT OF MEETINGS WITH LAWYERS. HE HAD BEEN IN FRONT OF JUDGES, A LOT OF TALKS GOING ON THERE WITH REGULATORS GLOBALLY. SO, IT'S BEEN A HARD JOB FOR THE LAST FEW YEARS. CAROLINE: MARK, GREAT ANALYSIS. MEANWHILE, LET'S TALK ABOUT OPENAI. IT'S OPPOSING A BILL IN CALIFORNIA THAT WOULD PLACE NEW SAFETY REQUIREMENTS ON ARTIFICIAL INTELLIGENCE COMPANIES. THE SAM ALTMAN-LED COMPANY JOINS TECH LEADERS AND POLITICIANS WHO HAVE COME OUT AGAINST THE STATE-LEVEL LEGISLATION. SHAREEN JOINS US WITH MORE. THEY DON'T LIKE BEING REGULATED BY CALIFORNIA BUT STILL SAY THEY WANT REGULATION. >> THAT IS RIGHT. THE COMPANY IS SAYING THEY

BELIEVE AI SHOULD BE REGULATED AT A FEDERAL AND NOT A STATE LEVEL, PARTICULARLY BECAUSE THIS BILL DEALS WITH CERTAIN CATASTROPHIC RISKS, SUCH AS THE USE OF AI TO CREATE BIO WEAPONS OR CAUSE MASS PROPERTY DAMAGE. AND THEY THINK THOSE KINDS OF THREATS SHOULD NOT BE ULTIMATELY LEFT TO A PATCHWORK OF STATE LEGISLATION. >> IT PHIL SCOTT HAS MADE SOME ADJUSTMENTS. THEY COULD FACE CRIMINAL PENALTIES FOR ASSAULT -- FALSE INFORMATION ABOUT THEIR SAFETY PLANS AND THAT'S BEEN CHANGED UP. HE'S BEEN LISTENING TO CONCERNS, BUT IT FEELS AS THOUGH A WALL OF VOICES. THEY ARE PRIVATE COMPANIES OR NANCY PELOSI HERSELF THINKS THIS IS A MISGUIDED SET OF REGULATIONS PART SHIRIN: SHIRIN:

-- REGULATIONS. THIS BILL HAS RECEIVED CRITICISM MOST AMONG SILICON VALLEY INVESTORS, AS WELL AS SOME OTHER POLITICIANS AT THE FEDERAL AND STATE LEVEL. HOWEVER, IT STILL DID PASS THE CALIFORNIA SENATE BY A WIDE MAJORITY, AND IT'S GOING TO BE VOTED ON IN THE HOUSE PRETTY SOON. SO, WE WILL SEE HOW IT DOES IN THE CALIFORNIA HOUSE. BUT ULTIMATELY, SENATOR WEINER'S OFFICE HAS BEEN TRYING TO WORK WITH THE TECH COMMUNITY TO MITIGATE THEIR CONCERNS. AND AS YOU SAY, HE'S TAKEN OUT ANY BEFORE IN A LIMITED CAPACITY. IF SOMEONE LIED UNDER OATH ABOUT THEIR AI MODEL SAFETY TESTING, THEY COULD BE ACCUSED OF PERJURY AND COULD HAVE SOME CRIMINAL PENALTIES. NOW, THAT'S TOTALLY REMOVED FROM

THE BILL. WE WILL SEE IF THAT'S ENOUGH TO APPEASE HIS CRITICS. WE ARE SEEING A LOT OF CONTROVERSY ABOUT THIS. WITH OPENAI, A FORMIDABLE COMPANY GOING UP AGAINST IT. CAROLINE: ULTIMATELY, GAVIN NEWSOM WOULD BE ANALYZING IT. BRIEFLY SHOWING, DOES THIS HELP OR HINDER FROM YOUR PERSPECTIVE SMALLER STARTUPS, NOT JUST THE MASSIVE OPENAI'S. SHIRIN: I THINK A BILL LIKE THIS IS UP FOR DEBATE. I HEAR SOME SMALLER DEVELOPERS SAYING THEY WORRY THAT IF A COMPANY LIKE META, WHICH PROVIDES MAJOR OPEN-SOURCE MODEL, STARTS TO LIMIT OFFERING THOSE OPEN-SOURCE MODELS BECAUSE IT'S WORRIED ABOUT LIABILITY THROUGH THIS BILL, THAT THAT COULD HURT THEM. BUT I ALSO HEAR ARGUMENTS THAT THIS

WOULD KIND OF LEVEL THE PLAYING FIELDS AND MAKE SURE EVERYONE IS ON THE SAME PAGE AND THAT NO ONE CAN KIND OF SKATE BY WITH DOING LESS THAN WHAT'S RESPONSIBLE. IT'S REALLY OUT TO THE JURY AND ULTIMATELY UP TO GOVERNOR NEWSOM ULTIMATELY IF THIS BILL DOES PASS TO EITHER SIGN IT OR VETO. CAROLINE: THE LATEST ON LEGISLATION FROM CALIFORNIA OR NOT AS THE CASE MAY BE. COMING UP, INFLUENCERS GETTING THE VIP TREATMENT AT THE DNC. BLOOMBERG IS LIVE FROM CHICAGO FOR MORE. BEFORE WE GO THERE WE HAVE TO LOOK AT SOME MOVEMENT IN TERMS OF INDIVIDUAL NAMES. SNOWFLAKE OFF BY MORE THAN 13.5%. A REPORTER TELLING US THIS IS COMING AS THE MOMENT FAILING TO

SHOW IT CAN MAKE THE PIVOT INTO THE WORLD OF ARTIFICIAL INTELLIGENCE FOR ITS OWN USE CASE OF SOFTWARE THE MOMENT. NUMBERS AND FORECASTS NOT LIVING UP TO EXPECTATIONS. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: DAY FOUR OF THE DEMOCRATIC NATIONAL CONVENTION WHERE KAMALA HARRIS IS SET TO SPEAK TONIGHT. AMONG THOSE ATTENDING INCLUDE A SLEW OF SOCIAL MEDIA INFLUENCERS GETTING THE VIP TREATMENT AT THE EVENT. OUR OWN VIP IS THERE LIVE IN CHICAGO. GIVE US THE FEEL OF WHAT LAST NIGHT WAS LIKE. A LOT OF HEAVY HITTERS IN INTERNET REACTION TO IT ALL. >> IT WAS AN AMAZING EVENING LOTS OF MEMORABLE SPEECHES. OPERA CALLING FOR COMMON SENSE OVER NONSENSE. TIM WALZ, THE APPEAL TO PATRIOTISM.

I THOUGHT HAKEEM JEFFRIES WAS VERY MEMORABLE TALKING ABOUT DONALD TRUMP. THIS IS SORT OF THE TRIUMPH OF VIBE-BASED CONVENTION, NOT A LOT OF POLICY DETAILS. GENERAL NODS TO AFFORDABILITY AND LOWER INFLATION, BUT THIS IS A DIFFERENT KIND OF CONVENTION. THE DEMOCRATS CLEARLY BELIEVE THEY CAN WIN BY MAKING ONE POINT: WE ARE THE GOOD GUYS. CAROLINE: WHETHER IT BE THROUGH SPEECHES, THROUGH RAP, HOWEVER YOU CONSUME IT. A MASSIVE NIGHT FOR KAMALA HARRIS NOW. WHAT ARE WE EXPECTING, ANY MORE AS WELL? >> I THINK THERE PROBABLY WILL BE. PEOPLE ROOM RING BEYONCE. PINK IS PERFORMING. I THINK SHE HAS TO GET SERIOUS UNTIL THE VOTERS WHAT SHE WANTS TO DO IN OFFICE.

I interviewed Deval Patrick, the former governor of Massachusetts, and I asked whether he believed Donald Trump's insinuation that Black voters are moving away from the Democrats, and he actually said that might be true. Democrats have to do something to make their appeal to those voters, and I think that is kind of the challenge for Democrats tonight: tell voters what you want to do, how you will lower prices, and the concrete proposals. We will get more of the broad appeal, more of the we are the good guys, but also more of a vision about what her priorities are. >> I hate to bring it back to tech, but I will.

DO YOU SEE ANY SORT OF NUANCE OR PROPOSALS THAT AFFECT THE TECH COMMUNITY? A LOT BEING TALKED ABOUT IN TERMS OF TAXES, FOR EXAMPLE. >> I DO NOT THINK SO. WE SAW A COUPLE OF WEEKS AGO WHEN THE VENTURE CAPITALIST REID HOFFMAN TALKED ABOUT REPLACING LINA KHAN AT THE HEAD OF THE FTC. THE PROGRESSIVE WING OF THE DEMOCRATIC PARTY REBELLED AGAINST THAT, THAT A DONOR WOULD CALL FOR THAT. THESE ARE ISSUES WHERE DEMOCRATS THEMSELVES JUST DON'T AGREE, AND I THINK THIS PARTY, OF THIS CONVENTION, IS FOCUSING ON UNITY AND DEFEATING DONALD TRUMP. SO BRINGING FORWARD -- TECH BRINGS FORWARD HOT BUTTON ISSUES THEY WOULD RATHER LEAVE TO ANOTHER TIME. CAROLINE: ENJOY PINK AND MAYBE AS WELL LATER TODAY.

MEANWHILE, THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. YOU DO NOT WANT TO FORGET TO CHECK OUT OUR PODCAST. YOU CAN FIND IT ON THE TERMINAL AS WELL AS ONLINE WITH APPLE OR SPOTIFY AND ON I HEART. FROM NEW YORK, WISHING ED LUDLOW GETTING WELL IN SAN FRANCISCO. ♪

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