>> FROM THE HEART OF HER INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. LIVE FROM LONDON SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. THE FIRST OF THE MAGNIFICENT SEVEN GATHER UP TO REPORT RESULTS. ED: PLUS, WIZ WALKS AWAY FROM GOOGLE'S OFFER. CAROLINE: PLUS, OUR EXCLUSIVE INTERVIEW WITH THE META-CEO MARK ZUCKERBERG. FIRST, WE CHECK IN ON THESE MARKETS. IT IS A FIGHT TO STAY IN THE GREEN. THE NASDAQ 100 IS LOSING, OFF BY 1/10 OF 1%. THE NASDAQ BIGGER BENCHMARK. IT IS STILL IN THE GREEN, BUT MORE BROADLY, WE ARE SEEING SOME WEAKNESS FROM A NUMBER OF THE

EARNINGS AND INDEED SOME THAT
HAVEN'T DISSIPATED. ED: SPOTIFY UP 12% IN THE SESSION,
SUBSCRIBERS, PAID SUBSCRIBERS UP YEAR ON YEAR.
THERE'S A FOCUS ON ONE OF THE COST-SAVING MEASURES THEY TOOK
AND THE BOTTOM LINE. LET'S STICK WITH THE SPOTIFY
STORY. THE COMPANY RELEASING THOSE
EARNINGS. LUCAS LEADS SCREEN TIME WHICH
IS OUR COVERAGE OF THE ENTERTAINMENT INDUSTRY AND ALL
THINGS STREAMING. WE ARE SO BACK, TALK ME THROUGH
SPOTIFY. >> NETFLIX AND SPOTIFY HAVING
GREAT EARNINGS. SPOTIFY IS FINALLY STARTING TO
LOSING A PROFITABLE BUSINESS. THAT'S WHAT INVESTORS ARE
EXCITED ABOUT. BOTH PROFIT AND MARGIN AHEAD OF
EXPECTATIONS AND PERHAPS MOST

NOTABLY, FOR THEM, THEY RAISED PRICES AND STILL BE ON THEIR SUBSCRIBER ADDITION. SO IT FEELS LIKE THEIR ABILITY TO RAISE PRICES NOW AND GOING FORWARD, WHICH IS GOOD NEWS FOR EVERYONE LOOKING AT IT. THEY'VE DONE WHAT WALL STREET WANTED, WHICH WAS CUT COSTS AND START PROFITS. CAROLINE: THEY HAVE FOCUSED ON THE PROFITABILITY OVER AND ABOVE MORE BROADLY JUST SUBSCRIBER GROWTH IN TOTALITY. THERE WAS WEAKNESS ON THE BIGGER LARGER NUMBER. LUCAS: I'VE BEEN SURPRISED OVER THE LAST COUPLE OF YEARS AT THEIR ABILITY TO CONTINUE TO GROW THEIR CUSTOMER BASE, NOT JUST PREMIUM, BUT THE FREE. THEY HAVE HAD A LOT OF SUCCESS IN INDIA AND SOUTHEAST ASIA, WHICH IS PART OF HOW THEY'VE DONE IT. BUT THEY FEEL LIKE THEY'VE

REIGNED IN THE SPENDING ON PODCASTING. THEY ARE INVESTING A FAIR AMOUNT IN AUDIOBOOKS. THEIR SKEPTICISM AS TO HOW THAT WILL SORT ITSELF OUT. IT'S A COMPANY AND IT'S A PRODUCT THAT PEOPLE REALLY LIKE. THEY ARE NOT CANCELING. SPOTIFY HAS PRICING POWER. WHERE THERE HAVE BEEN CONCERNS ABOUT HOW THAT BUSINESS WOULD LOOK, IT'S STARTING TO FEEL LIKE A COMPANY THAT INVESTORS CAN RELY ON. CAROLINE: I'M STILL -- ED: I'M STILL FOCUSED ON PODCAST. I FIND THE INDUSTRY TO BE SO VIBRANT. IF YOU TRACK THE NEWS FLOW, INDIVIDUAL NAMES DOING LICENSING DEALS FOR PROPERTIES, DOES SPOTIFY TODAY HAVE ANYTHING TO SAY ABOUT THAT? LUCAS: SPOTIFY'S CONTENT TO BE A NEUTRAL DISTRIBUTOR OF PODCASTS.

THEY SPENT A BUNCH OF MONEY BUYING PODCAST NETWORKS, FUNDING ORIGINALS, SECURING EXCLUSIVE RIGHTS TO SHOWS BECAUSE THEY USE THOSE DEALS TO BRING PEOPLE IN AND GET PEOPLE LISTENING TO PODCASTS ON SPOTIFY. SPOTIFY FEELS LESS OF A NEED TO PAY FOR PEOPLE AND FEELS LIKE IT CAN JUST BENEFIT FROM AD FILLS FROM SHOWS IT DOESN'T CONTROL OR PAY FOR. CAROLINE: LUCAS SHAW, WE APPRECIATE YOU BRINGING ALL THINGS SPOTIFY. STICKING WITH RESULTS OUT OF EUROPE. CHRISTIAN KLEIN JOINED BLOOMBERG TO WEIGH IN ON THE RESULTS. >> WE ARE NOT ONLY FOCUSING ON MOVING CUSTOMERS TO THE CLOUD WE LOOKED INTO THEIR BUSINESS MODEL TRANSFORMATION SO IT'S ALL ABOUT HOW CAN YOU ACTUALLY GROW YOUR BUSINESS.

EXXON MOBIL, ONE OF OUR LARGEST CUSTOMERS IN THE CLOUD. THEY ARE MOVING TOWARDS RENEWABLE ENERGIES, AND OUR SOFTWARE IS KEY FOR THAT. TALKING ABOUT RESILIENCY OF SUPPLY CHAINS, WE INFUSE AI AND ARE CONNECTING YOUR SUPPLY CHAIN WITH THESE OPERATIONS OF THOUSANDS OF YOUR SUPPLIERS, AND THAT'S WHY IT IS SO RELEVANT THESE DAYS. CAROLINE: SONYA, SHARES AT A RECORD HIGH. IS IT ALL ABOUT AI? SONJA: AI PLAYS A ROLE IN BUSINESS DEVELOPMENT. WE'VE SEEN SOME GOOD GROWTH ON THE CLOUD REVENUE, AND ALSO THAT SEEMS VERY HEALTHY, SO WE CAN EXPECT MORE OF THE GROWTH TO COME LATER THIS YEAR AND IN THE COMING MONTHS. THE AI IS CONNECTED IN ATTRACTING NEW CUSTOMERS.

TO THE MORE LUCRATIVE CLOUD BUSINESS. ED: THANK YOU VERY MUCH. ANOTHER TECH COMPANY REPORTING TODAY, TESLA. LET'S DISCUSS WHAT TO EXPECT WITH THE HEAD OF RESEARCH. GETTING MYSELF ORGANIZED, PUTTING MY POSTS IN FOR THE BLOG TODAY. A BIG FOCUS WILL BE FSD. YOU HAVE AN INTERESTING VIEW ON THAT. WHY ARE YOU WATCHING THIS SO CLOSELY? >> THE CAR SALE DATA IS VERY TRANSPARENT. THE CAR SALES HAS HIT A WALL. WEATHER IN CALIFORNIA, CHINA, OR EUROPE. SALES DOWN 24%. IN CALIFORNIA BEING 25%. IN CHINA IT'S DOWN 7%. THAT'S PART OF VERY AGGRESSIVE PROMOTIONS. IN EUROPE IT'S A DIFFERENT STORY. THE CHINESE CAR GOING TO EUROPE. YOU FACE A 20% INCREASE IN

TARIFFS.
AT THIS CROSSCURRENT, TESLA ALL OF A SUDDEN PIVOTED IT
STORY FROM EV SALES TO FSB - FSD.
THAT'S A STORY OF YOU BY A CAR, I GIVE YOU A DRIVER.
THAT SUPPOSED TO BE A DIFFERENTIATION FOR TESLA CAR
TO GET MORE SHARE IN THE MARKET. IT IS OUR VIEW AFTER SPEAKING
EXTENSIVELY TO THE RESEARCHERS IN A FIELD AS WELL AS THE
COMPETITIONS AI EFFORT THAT IT'S A VERY IMMATURE PRODUCT.
IT'S TIME TO GET A HIGHER QUALITY DATA, PROBABLY A REWORK
OF THE UNDERLYING SYSTEM IN THE WAITING FOR MORE FOR THIS TO
WORK. >>.
DRIVING HAS BEEN SOMETHING ED AND I HAVE BEEN PLAYING WITH.
WHY DO YOU THINK THE UNDERLYING TECHNOLOGY, THE OVERALL SCALE
OF INVESTMENT TESLA NEEDS TO

MAKE IT SO MUCH LARGER IN THE MARKET IS FACTORING IN. THIS IS ALWAYS THE LONG-TERM BET. >> BECAUSE TESLA'S AI VISION EVERYONE ELSE IN THE INDUSTRY RELIES ON SENSORS. IN ADDITION TO THE UNDERLYING AI SOFTWARE. BUT TESLA WALLS TO DIFFERENTIATE HIS UNIQUE PLAY. THEREFORE MARKETS AS A VISION ONLY AI PLAY. IF YOU TALK TO PEOPLE IN THE AREA. THEY WILL TELL YOU IT'S A VERY DIFFICULT ROUTE. BECAUSE IT NEEDS A LOT MORE EXTENSIVE DATA INPUT. AND IT REQUIRES A MUCH MORE EXTENSIVE AI SYSTEM TO TRULY GIVE YOU. YOU HAVE THIS VERY BIG OPERATION DOMAIN DESIGN. AND YOU HAVE LIMITED BUT YOU WANT TO ACHIEVE FIVE. SO THAT'S -- >> WE WERE JUST SHOWING SOME OF THE THINGS OF

THE TOP OF MIND FOR RETAIL INVESTORS. THEY HAVE A PLATFORM THEY CAN VOTE. THEY WILL UP BOTH THEIR QUESTIONS. WHAT'S MISSING FROM THAT IS ROBOTAXI. HOW CRITICAL IS IT THAT ELON MUSK GIVES US A NEW DAYTON FOR THE ROBOTAXI? >> ROBOTAXI IS JUST ONE MANIFESTATION OF ITS VISION. BUT ROBOTAXI GETS EASIER TO ACHIEVE BECAUSE THERE'S NO ONE BEHIND THE WHEEL. SO IN TERMS OF THE LEGAL LIABILITY, IT'S MUCH CRYSTAL CLEAR. IF ROBOTAXI GETS INTO TROUBLE, IT'S TESLA THAT WILL FULLY COMPENSATE AND BE FINANCIALLY AND LEGALLY RESPONSIBLE, AS OPPOSED TO FSD. AS LONG AS IT'S AUTONOMOUS AND TESLA DOESN'T CLAIM 100% LEGAL RESPONSIBILITY, THE INSURANCE

COMPANY -- THAT'S WHY YOU SEE
LOTS OF WAYMO'S ON THE STREET. BUT THERE'S NO TESLA ROBOTAXI
BECAUSE IT REQUIRES A DIFFERENT HARDWARE, SOFTWARE, AND AI
PROGRAM INTEGRATION. CAROLINE:
WE ARE USED TO, TO PERHAPS BEING PATIENT ON ELON'S PROMISES.
PRETTY PUSHED BACK ROBOTAXI, HE PUSHED BACK OPTIMIST IN THE
LAST DAY OR SO. DOES THAT MATTER IN THE LONGER
TERM IF WE ARE SEEING THE VISION OF AI.
THIS IS ALSO AN ENERGY COMPANY THAT DOES RELATIVELY WELL.
JUNHENG: ENERGY DOES EXTREMELY WELL, BUT ENERGY IS NOT SOMETHING GIVING
A HUNDRED TIMES SURPRISED TO EARNINGS RATIO. THE COMPANY'S POSTER -- SO
EFFECTIVELY YOU ARE GIVING IT A ¥100 PRICE-TO-EARNINGS RATIO.

FSD'S STORY WILL GET THIS TO
WHERE ELON MUSK WILL WANT IT TO GO. SO THE MATH IS THIS. FSD WILL ALLOW THE PENETRATION
TO GO UP TO 30% OF ALL CARS. SO U.S.
SALES ABOUT 18 MILLION CARS. THAT GIVES YOU 6 MILLION CARS
FOR TESLA BECAUSE IT'S GIVING YOU A CAR AND DRIVER.
AND THEN THE COMPANY MAKES 10% ON THE MARGIN AND YOU GET 30
TIMES PRICE-TO-EARNINGS WITH THAT KIND OF RUN RATE.
JUST LIKE YOU GIVE TO APPLE THAT GIVES YOU 2 TRILLION
EVALUATION. THAT'S THE STORY TO TELL TO THE
INVESTOR BASE AND PACIFY THEM. IT MIGHT BE SOMEONE ELSE GETS
THERE FIRST AND TESLA DOES NOT. IF YOU GIVE 20% PROBABILITY,
THAT GIVES YOU SIGNIFICANTLY

LESS MARKET VALUATIONS THAN 2 TRILLION. >> WE TRY TO VINDICATE THAT 93 TIMES FUTURE EARNINGS. THAT IS THE VALUATION OF TESLA. LOOK AT WHAT'S HAPPENING WITH ALPHABET. IT'S NOT JUST TESLA OUT AFTER THE BELL. WE ARE UP 5/10 OF A PERCENT. NOT ONLY FOCUSING ON SEARCH, CLOUD, AND AI, BUT ALSO THE WIZ REJECTION OF GOOGLE'S BILLION-DOLLAR OFFER. WE WILL TALK ABOUT THAT LATER IN THE SHOW. >> BLOOMBERG'S EMILY CHANG FOR MORE ON THAT EXCLUSIVE INTERVIEW WITH MARK ZUCKERBERG. THAT'S NEXT. THIS IS BLOOMBERG TECHNOLOGY. >> TODAY, META UNVEILED THE LARGEST OPEN-SOURCE AI MODEL EVER. THE COMPANY IS UPDATING ITS META-AI SERVICE AND IS BEING BILLED AS A RIVAL TO CHATGPT IN

AN EXCLUSIVE INTERVIEW WITH EMILY CHANG, THE -- MARK ZUCKERBERG OPENED UP ABOUT HIS STRATEGY AND WHY HE BELIEVES IT SUPERIOR TO COMPETITORS LIKE OPENAI AND GOOGLE. TAKE A LISTEN. EMILY: YOU ARE RELEASING LLAMA 3.1. INCLUDING THE BIGGEST OPEN-SOURCE MODEL EVER PAID 405 BILLION. WHAT DOES THAT JUMP UNLOCKED? MARK: THEY ARE GOING TO USE IT AS A TEACHER TO TRAIN SMALLER MODELS THEY USE IN DIFFERENT APPLICATIONS. IF YOU THINK ABOUT ALL THE STARTUPS OUT THERE OR ALL THE ENTERPRISES ARE EVEN GOVERNMENTS THAT ARE TRYING TO DO DIFFERENT THINGS, THEY PROBABLY ALL NEED TO BUILD CUSTOM MODELS FOR WHAT THEY ARE DOING AND IT'S HARD TO DO THAT WITH CLOSED SYSTEMS OUT THERE WITH HER IT'S OPENAI OR GEMINI.

THIS GETS TO A PRETTY CORE PART
OF OUR PHILOSOPHY. IS WE DON'T BELIEVE THERE'S GOOD TO BE ONE
AI TO RULE THEM ALL. OUR VISION IS THERE'S GOT TO BE
MILLIONS OF DIFFERENT MODELS OUT THERE. I DO THINK TO SOME DEGREE, IF
YOU THINK YOU CAN ACCRETE THIS ONE SUPER INTELLIGENCE,
I FIND THAT BOTH THE WRONG WAY TO LOOK AT AND ALSO VERY
UNAPPEALING. IT'S A MUST ORDER MILLION
CREATORS ON THE PLATFORMS. PEOPLE WANT TO INTERACT, THERE
AREN'T ENOUGH HOURS IN THE DAY. EVERY SINGLE ONE OF THEM CAN
EASILY TRAIN AN AI VERSION OF THEMSELVES, THAT THEY CAN MAKE
IT WHAT THEY WANT. IT'S ALMOST LIKE AN ARTISTIC
ARTIFACT THAT THEY ARE PUTTING OUT THERE FOR THEIR COMMUNITY
THAT ALLOWS THEIR COMMUNITY TO

INTERACT WITH THEM AND GIVES
THEM CONTROL OVER HOW THAT INTERACTION HAPPENS. EMILY: FACEBOOK AND YOU HAVE BEEN
BLAMED FOR A LOT OF THINGS. WHETHER YOU AGREE OR NOT,
WHY SHOULD WE TRUST YOU WITH AI? MARK: THAT'S A LOADED QUESTION.
WE HAVE GOTTEN BLAMED FOR A LOT OF THINGS.
I TAKE OUR ROLE IN ALL OF THIS STUFF SERIOUSLY.
I THINK WE TRY TO HANDLE THIS AS WELL AS POSSIBLE.
I'D LIKE TO THINK WE ARE AN IMPORTANT AND RELEVANT COMPANY.
SO I THINK THE SCRUTINY IS GENERALLY HEALTHY.
ONE OF THE DEFINING THINGS AROUND OPEN-SOURCE IS ANYONE
CAN SCRUTINIZE THE WORK. BECAUSE OF THAT, IT PUTS A LOT
OF PRESSURE TO MAKE SURE THE QUALITY OF THE WORK YOU ARE
DOING GETS BETTER QUICKLY. ED: THAT WAS EMILY CHANG IN HER
VIEW WITH -- INTERVIEW WITH

MARK ZUCKERBERG BREAD EMILY
JOINS ME ON SET. IT WAS SO WELL-TIMED. THE
INTERVIEW, AND IT'S CRITICALLY IMPORTANT. BACK TO THE LAST
WHERE ZUCKERBERG SAID, WE THINK META COULD BE THE LEADING AI
COMPANY. BUT HE'S COMING FROM BEHIND A
LITTLE BIT. YOU DID SOME CATCHING UP WITH
HIM IN THAT CONVERSATION. EMILY: THE SCALE OF FACEBOOK,
INSTAGRAM, WHATSAPP IS INCREDIBLE.
THERE. CHATBOT IS ALREADY EMBEDDED ACROSS THESE PRODUCTS,
AND YOU CAN USE IT AS A STANDALONE CHATBOT.
HE SAYS HUNDREDS OF MILLIONS OF PEOPLE WILL BE USING THIS BY
THE END OF THE YEAR. IN FACT, BEFORE THE END OF THE
YEAR, WHICH HE BELIEVES MAKES IT THE MOST USED CHATBOT IN THE
WORLD. IN A FEW MONTHS, IT'S

POTENTIALLY GOOD TO BE ECLIPSING CHATGPT. WE TALKED ABOUT THE LEVEL OF INTELLIGENCE IN THESE LATEST MODELS, AND HE ADMITS HE STILL -- THERE IS A GAP BETWEEN LLAMA 3.1 AND THE MOST ADVANCED MODELS, BUT THEY ARE WORKING ON IT, AND THEY ARE CLOSING THAT GAP WHEN THE UPDATE COMES OUT. CAROLINE: AS YOU WERE MENTIONING IN WHAT HE TERMED A LOADED QUESTION FOR, HE'S USED TO CRITICISM, BUT THERE'S BEEN CRITICISM ON THE FACT IT'S OPEN SOURCE AND THE DANGER IT BRINGS. HOW WAS HE RESPONDING TO THAT ELEMENT OF THINGS? EMILY: I THINK BROADLY, OPEN-SOURCE IS MORE SAFE AND SECURE. YOU'VE GOT ALL THESE PEOPLE AROUND THE WORLD BUILDING ON IT, USING IT. IF THEY SEE SOMETHING WRONG,

META WILL GET CALLED OUT ON IT.
HE SAID AND WILL FIX IT. THE QUESTION IS, WHAT'S IN IT
FOR META? IT'S NOT THAT THERE'S NOTHING
IN IT FOR THEM. IT COMES IN -- IT BECOMES AN
INDUSTRY STANDARD. THIS IS MORE SECURE BUT ALSO IS BETTER FOR
US BECAUSE WHAT'S HAPPENING UNDER
THE HOOD, YOU CAN'T NECESSARILY SEE WHEN SOMETHING GOES WRONG.
WHAT'S INTERESTING IS WITHOUT OPEN-SOURCE, HE COULDN'T BUILD
FACEBOOK. THAT'S A DEEP-SEATED PART OF HIS PHILOSOPHY FOR 20
YEARS. IT'S INTERESTING HE UNDERSTANDS
WHY THERE'S BEEN PUSHBACK AND SOME PEOPLE SEE HIM AS THIS
UNLIKELY CHAMPION OF OPEN SOURCE, GIVEN HOW META AND
FACEBOOK AND ITS PLATFORMS HAVE EVOLVED, BUT HE DOUBLED DOWN
THIS IS THE BEST WAY FORWARD.

ED:
MARK ZUCKERBERG, THE GOLD CHAIN WEARING, NEW HAIRCUT, MMA
FIGHTING MAN. AND THEN THERE'S MARK ZUCKERBERG AT THE HELM OF
A CRITICALLY IMPORTANT COMPANY. YOU SPENT TIME WITH HIM AT HIS
HOME IN TAHOE. EMILY: I LEARNED HOW THOSE CHARACTERS
RELATE TO EACH OTHER. YOU KNOW, HE JUST SEEMS... I'VE MET
HIM MANY TIMES OVER THE YEARS. HE SEEMS MORE COMFORTABLE IN
HIS OWN SKIN THAN I'VE EVER SEEN. ZUCK HAS ALL THE SIDE QUESTS,
AND WE TALKED ABOUT HOW HE JUST HAS ENERGY.
HIS WIFE WAS THERE AS WELL. I PREFER WHEN HE'S DOING THESE
OTHER THINGS BECAUSE HE JUST HAS SO MUCH ENERGY.
THE MAIN TAKEAWAY WAS HE'S NOT GOING ANYWHERE. IF YOU THINK
ABOUT JEFF BEZOS, WHO LEFT

AMAZON WHO LEFT GOOGLE. THERE'S ALL THESE MAJOR TECH FOUNDERS. HE SAID, LOOK, I WANT TO SEE THIS AI WAVE PLAYED OUT. IT'S 10 OR 15 MORE YEARS BEFORE THE NEXT PLATFORM WILL EMERGE. >> EMILY CHANG, CAN'T WAIT TO SEE MORE OF THE INTERVIEW. TUNE INTO THIS ON BLOOMBERG TV TONIGHT. IT IS 6:30 P.M. EASTERN TIME. APPLE, A FOLDABLE IPHONE. ACCORDING TO THE INFORMATION, WE ARE CURRENTLY AT SESSION HIGHS. IT COULD FOLD WITH WISE LIKE A CLAMSHELL. AND IT WOULD MAKE IT SIMILAR TO THE SAMSUNG GALAXY X FLIP IN 2020. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: BIG NEWS IN CYBERSECURITY. STARTUP WIZ HAS REJECTED GOOGLE, TURNING DOWN THEIR TAKEOVER OFFER, STICKING INSTEAD TO THE

PLANS FOR AN IPO ACCORD INTO A MEMO BLOOMBERG HAS SEEN. IT MARKS A BLOW FOR GOOGLE, WHOSE TRIED TO CATCH UP ON SHORING UP ITS SECURITY OFFERINGS OF CLOUD SERVICES. PLEASE TO BRING IN DANA FOR MORE. TALK TO US ABOUT WHY THIS WAS SO INTEGRAL TO PETE WITH MICROSOFT AND TAKE ON THE OTHER COMPETITORS AND AWS IN THE SPACE OF CLOUD. >> IT WOULD HAVE ROUNDED OUT CYBERSECURITY OFFERINGS. THE COMPANY HAD ACQUIRED A LITTLE OVER 5 BILLION. AND THEY WOULD HAVE JUST ROUTED OUT THE PORTFOLIO. THE REAL FOCUS ON DETECTING CYBER THREATS ON VARIOUS CLOUD PLATFORMS INTO A NUMBER OF MAJOR EXISTING PLATFORMS, INCLUDING MICROSOFT AZURE, A WEB SERVICES.

THESE ARE GOOGLE'S ALPHABET --
GOOGLE/ALPHABET'S COMPETITORS. AS LONG AS THERE ONE OF THE
MAJOR NO NAMES -- NO NAMES IN THAT MAJOR CRITICAL SPACE. >> ACCORDING TO SOURCES, IS THE
LEADERS ARE ALSO CONSCIOUS ABOUT THE REGULATORY
ENVIRONMENT, ANTITRUST. >> THIS INDEED WOULD HAVE BEEN A REALLY
RISKY DEAL HAD THE AGREEMENT GONE THROUGH.
RATHER, HAD THEY AGREED TO AN ACQUISITION.
GOOGLE IS FACING VARIOUS REGULATORY CHALLENGES,
EVERYTHING FROM ITS SEARCH BUSINESS TO ITS ADVERTISING
TOOLS, AND PROBABLY EVEN A MUCH SMALLER ACQUISITION WOULD'VE
DRAWN SOME REGULATORY SCRUTINY. WE ARE TALKING A $23 BILLION
ACQUISITION. THIS WOULD HAVE DWARFED
PREVIOUS ALPHABET ACQUISITIONS.

CERTAINLY, EVEN THE ONE THAT I
JUST MENTIONED, WHICH IS ABOUT 5.5 BILLION.
IT WOULD HAVE BEEN A HUGE RISK INDEED, WHICH ACCORDING TO OUR
REPORTING, WAS ONE FACTOR THAT THE TEAM CONSIDERED IN CHOOSING
TO IPO INSTEAD OF BEING ACQUIRED.
THAT NOT ONLY DID IT FEEL THAT IT COULD BUILD MORE VALUE AS AN
INDEPENDENT COMPANY, BUT HAD SOME CONCERNS ABOUT WHETHER HE
COULD EVEN GET PAST THOSE REGULATORY HURDLES IN THE U.S.
AND POSSIBLY ELSEWHERE. ED: THANK YOU.
COMING UP ON THE SHOW, WE WILL BE JOINED BY THE AUTHOR OF THE
CRYPTO IS MACRO NOW NEWSLETTER TO GET HER TAKE ON THE NEWLY
APPROVED ETHER ETF'S. FROM LONDON SAN FRANCISCO, THIS
IS BLOOMBERG TECHNOLOGY.

♪ ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. >> I'M CAROLINE HYDE IN LONDON FOR THE WEEK. I WANT TO POINT YOU TO WHAT OTHER EARNINGS WE'VE HAD OUT TODAY, AND THEY'VE BEEN HELPING DRAG THIS MARKET SOFTER. NXP SEMICONDUCTORS UP BY MORE THAN 9%. THIS IS WE SEE REVENUE IN THE AUTOS CHIP SECTOR BEING WEAKER ONCE AGAIN, AND MAYBE SOME OTHER CHIPMAKERS. LET'S CALL IT 6%. THE UNIVERSAL SIDE OF THE THEME PARKS NOT LOOKING GOOD, OFTEN MORE THAN 5%, AND ONCE AGAIN SEEING A STRUGGLING WITH BROADBAND. THIS IS SOME AFRAID, PERHAPS TO MY PRODUCER, NOT THE RIGHT COMPANY TO BE LOOKING AT. LOGITECH IS THE ONE WE WANTED TO LOOK AT.

SORRY IF I SENT AROUND THE
WRONG PARTICULAR COMPANY FOR THIS.
WE HAVE BEEN SEEING THIS ON THE DOWNSIDE AFTER SUN SLOWER GROWTH
IN THE FUTURE. WE LOOK AT THE EARNINGS AS THEY
DECIDE NOT TO BE BUYING. IT SEEMS AS THOUGH WIZ HAS BEEN
PUSHING BACK ON THAT AUTHOR OFFER.
ALL EYES AS THEY COME OUT WITH THEIR EARNINGS.
WHAT WILL THEY SAY IN TERMS OF ROBOTAXI.
THE FUTURE TEXAS INSTRUMENTS BY 3%,
AN XP SIGNALING SOME WEAKNESS. IS THIS A TECH STOCK?
IT HAD SOME SUCCESS. WE KNOW IT'S AN IP COMPANY WITH
HOT WHEELS ON THE LIGHT, UP BY MORE THAN 5%, AND THEY
WILL GIVE US THE EARNINGS AFTER THE BELL.
PUSHING BACK ON THUS YET, WE ARE WONDERING IF THEY REMAIN AN
INDEPENDENT COMPANY.

FOR NOW, SAYING WE LIKE OUR STRATEGY OF REMAINING INDEPENDENT.
THEY HAVE BEEN IN THAT PARTICULAR COMPANY.
WHAT ARE YOU LOOKING AT? ED: REGULATORS APPROVE THE FIRST
U.S. ETF'S INVESTING DIRECTLY IN ETHER, ACCORDING TO FILINGS AND
STATEMENTS FROM VARIOUS ASSET MANAGEMENT.
TRADING IS IMMINENT, SO LET'S BRING IN BLOOMBERG'S KATIE
GREIFELD. FRIEND OF THE SHOW, FRIEND OF
MINE, EXPERTS IN ALL THINGS CAP MEME RELATED.
I THINK WHY THIS STORY IS SO INTERESTING. WE BEEN TALKING
ABOUT IT'S A GOOD TEST FOR WIDER INTEREST IN CRYPTO
MARKETS. >> DEMAND BEYOND BITCOIN.
IT SORTED TRADING IN JANUARY AND A WILD SUCCESS, BLOWING PAST
EXPECTATIONS. WE HAVE SEEN EIGHT

SPOT ETHER ETF'S TRADING IN THE
U.S. TODAY. THESE ARE EXPECTED TO NOT DRAW
AS MUCH INTEREST, BUT TRADING VOLUME SO FAR HAS BEEN PRETTY
IMPRESSIVE. OVER 300 MILLION IN TRADING VOLUME SO FAR TODAY. IF YOU LOOK AT BLACK ROCK'S IN
PARTICULAR, THE TICKER IS ETH A. VOLUME AFTER THE FIRST HOUR WAS
$50 MILLION. MAYBE IT WILL GET TO 200
MILLION BY THE END OF THE DAY. JUST FOR CONTEXT, THE SPOT ETF
DID ABOUT $1 BILLION ON ITS FIRST DAY OF TRADING.
IMPRESSIVE, BUT NOT QUITE BITCOIN LEVELS. >> IT WAS NEVER GOING TO BE
BITCOIN LEVELS, WAS IT. CAN YOU MARCUS UP TO WHAT WE
ALL ANTICIPATED AND WHETHER OR NOT THE FLOWS ARE GOOD ENOUGH
FOR WHAT THE MARKET NEEDED TO SEE. KATIE:
THERE WAS AN INTERESTING NOTE

FROM WINTER VIEW TRADING,
TYPICAL ANALYST PROJECTIONS INTO ANNUALIZED INFLOWS OF
ABOUT $4.8 TO $6.4 BILLION FOR THESE ETHER PRODUCTS IN THE
FIRST YEAR, WHICH AGAIN IS NOT NOTHING.
FOR A NEW ETF DEBUT IN A NEW CATEGORY, THAT'S PRETTY
IMPRESSIVE. IT'S JUST THAT THE BITCOIN
ETF'S RECEIVE SO MUCH ENTHUSIASM, AND NET INFLOWS OF
$17 BILLION. EVEN WITH THE OUTFLOWS YOU'VE SEEN, THERE
ARE SOME PRETTY DIFFICULT COMPS THERE, BUT IT WILL BE
INTERESTING TO SEE HOW THESE DEVELOP, WHETHER FINANCIAL
ADVISORS, IN PARTICULAR, WILL EMBRACE THESE.
HOW DO YOU MARKET ETHER? BITCOIN IS DIGITAL GOLD.
WHAT'S THE SALES PITCH FOR ETHER TO A NON-CRYPTO AUDIENCE?
CAROLINE:

OIL, SILVER. WE'VE HEARD IT ALL. WE APPRECIATE IT. LET'S GET AN INSIDERS TAKE. NEWSLETTER BASED IN EUROPE. A LOT OF THE TIME AND EUROPE UNDERSTANDS AND ALREADY HAS EXCHANGE-TRADED NOTES RELATED. WHAT ARE SOME OF THE ISSUES. IT CAN YIELD YET MORE IF YOU WERE INDEED STAKING IT. AND THAT WILL LIMIT IT TO A CERTAIN EXTENT? >> EXACTLY. THE LAST TIME I WAS ON SEEKING REWARDS. AS YOU POINTED OUT. WE HAD NET RETURN. THEY ARE CRITICAL AS THEY SHOULD BE. SO THERE ARE MANY PEOPLE WHO ARE HAPPY AT THAT 3.5 BASIS POINT. AND WE HAVE MANY FUNDS -- ED: I'M SORRY TO INTERRUPT YOU. WE ARE HAVING SOME ISSUES WITH YOUR AUDIO. WE WILL WORK ON IT AND GET YOU BACK AS SOON AS POSSIBLE.

AUTHOR OF THE CRYPTO IS NOW
MACRO NOW NEWSLETTER. THANK YOU. IT'S TIME NOW FOR TALKING TECH.
CROWDSTRIKE CEO GEORGE KURTZ IS SET TO TESTIFY BEFORE CONGRESS.
THE U.S. HOUSE COMMITTEE HAS CALLED ON
THE EXECUTIVE FOR QUESTIONING AFTER LAST WEEK'S BOTCHED
SOFTWARE UPDATE. ADDITIONALLY, THE U.S.
DEPARTMENT OF TRANSPORTATION HAS OPENED AN INVESTIGATION
INTO DELTA AS HE CONTINUES TO SEE MAJOR FLIGHT CANCELLATIONS
AND DELAYS FROM THE CROWDSTRIKE OUTAGE DESPITE RIVALS RETURN TO
NORMALITY. PLUS, SHARES FALLING AS
AUTHORITIES HAVE ARRESTED ITS FOUNDER BRIAN KIM OVER ALLEGED
MARKET MANIPULATION. THE BILLIONAIRE ENTREPRENEUR
WAS TAKEN INTO CUSTODY AFTER

HOURS OF DELIBERATION AND FEARS
OF EVIDENCE DESTRUCTION. THEIR SPOKESPEOPLE DENY THE
ALLEGATIONS. COMING UP ON BLOOMBERG
TECHNOLOGY, WE WILL TAKE A LOOK AT THE ROLE OF AI AND ROBOTICS,
AND THAT'S WHO THE COMPANY MIGHT -- CHRIS JOINS US NEXT.
THIS IS BLOOMBERG TECHNOLOGY. ♪ THIS IS BLOOMBERG. CAROLINE:
TALKING VENTURE NOW AND ICONIC CAPITAL KNOWN FOR MANAGING THE
FORTUNES OF SILICON VALLEY'S ELITE SAYS IT'S RAISED $5.75
BILLION FOR A NEW VENTURE-FOCUSED FUND.
ANOTHER EXAMPLE OF THE CONCENTRATION OF DOLLARS IN A
HANDFUL OF BIG VC FIRMS. $7 BILLION WENT TO A GROUP OF
FUNDS. ANOTHER $3 BILLION TO VENTURE
PARTNERS.

A COMPANY FOCUSING ON INDUSTRIAL PRODUCTIVITY WITH AI, BUT ALSO THREE-DIMENSIONAL PRODUCTS. THROUGH A SERIES B. WE ARE DELIGHTED TO BE JOINED BY THE CEO AND COFOUNDER CHRIS WELTY. CHRIS IS ALSO A FORMER TESLA MATERIALS ENGINEER WHO HELPED BUILD WHAT WAS TESLA. BOUGHT NOW OPTIMISTS. IT'S NOT US AS EARLY A CROWDED FIELD, BUT I WOULD SAY WE HAD SEVERAL STARTUPS ON THE SHOW FOCUSING IN THE FIELD OF ROBOTICS. WHAT IS SPECIFIC ABOUT YOUR TECHNOLOGY AND AMBITIONS OF HOW IT'S USED IN THE REAL WORLD? THANKS FOR HAVING ME ON THE SHOW. THE CHALLENGE IS 90% OF WAREHOUSES TODAY HAVE NO MEANINGFUL AUTOMATION. SO THIS PRODUCT MARKET FIT GAP. WE EXPERIENCE SOME OF THE CHALLENGES WITH THE CURRENT

STATE OF AUTOMATION.
WE ENDEAVOR TO MAKE SOMETHING EXTREMELY SIMPLE, USER-FRIENDLY,
AND THE MORE SIMPLISTIC WE CAN MAKE THE SYSTEM, THE MORE
COST-EFFECTIVE AND MORE FLEXIBLE SOLUTION COULD BE.
CAROLINE: AND THE MORE PEOPLE WANT TO USE
IT. ALBERTSON'S, FOR EXAMPLE, WHAT
ARE THEY SOLVING ALREADY? >> WHAT IS IT NOT SOLVING FOR
THEM? IF YOU LOOK -- CAROLINE: IS SOLVING FOR THEM FOR IT,
WHAT'S THE POSITIVE YOU FINDING IS ALREADY THE APPLICATION FOR
THIS? >> WE ARE FOCUSED ON MOVING
MATERIAL AT THE BREAD-AND-BUTTER OF SUPPLY
CHAIN ALMOST EVERYONE YOU SEE AROUND YOU AT ONE POINT.
WE ARE DOING THAT IN A MUCH MORE SIMPLE AND EFFICIENT WAY
THROUGH THE USE OF JUST TWO PRODUCTS. IT'S A STEEL LATTICE STRUCTURE
AND ONE THAT MOVES IN THREE

DIMENSIONS THAT LET'S YOU USE SOFTWARE TO DEFINE HOW YOUR WAREHOUSE OPERATES, VERSUS TRADITIONALLY USING MECHANISMS LIKE PURVEYORS AND THAT SORT. I CAN'T TELL IF THAT'S QUITE A LOT OF MONEY OR NOT ENOUGH MONEY TO LAUNCH A PRODUCT LIKE THIS, SCALE IT, AND PUT IT INTO THE REAL WORLD. YOU TELL ME. CHRIS: IT SOUNDS LIKE A LOT, OF COURSE, PER YOU HAVE TO KEEP IN MIND. THERE ARE DIFFERENT ENGINEERING DISCIPLINES, AND IT'S INCREDIBLY IMPORTANT TO MAKE A PRODUCT RELIABLE, SCALABLE, ETC... AUTOMOTIVE COMPANIES SPEND QUITE A BIT OF MONEY ON THE MANUFACTURING TO BRING AN ELECTRIC VEHICLE TO MARKET. ESSENTIALLY BRINGING NOT ONLY MOVING 3000 POUNDS IN HAS WORKED AT HORIZONTAL PLANE BUT UP-AND-DOWN.

RELIABLE, SCALABLE, AND IN A NEAR-TERM IDEAL OF BEING USEFUL. WE ARE ABOUT TO GET TESLA NUMBERS. WE ARE ABOUT TO FIXATE ON A SLIGHT DELAY TO ITS PRACTICAL USE CASES. WHAT WAS IT LIKE IT OPTIMISTS AND HOW DID YOU DECIDE SOMETHING DIFFERENT PERHAPS BECAUSE OF THE DELAYS THERE? MY BACKGROUND THAT TESLA WAS A VERY INTERESTING ONE. I HAD EXPERIENCED ON THE TRADITIONAL WAREHOUSE SIDE AND TRYING TO GET FLOW UP AND RUNNING FOR THE MODEL 3 MANUFACTURING AND WAS ALSO TASKED TO LEAD THE OPTIMIST PROGRAM. HUMANOID ROBOTICS ABSENTLY FASCINATING. WORKING ON THOSE PROBLEMS AND LEADING THE TEAM BUT ULTIMATELY IT'S A BIT OF A NINTH-INNING PROBLEM.

THERE'S INNINGS 4, 5, 6, AND SEVEN THAT STILL NEED TO BE SOLVED. FOR THE NEXT 10 TO 15 YEARS OF MY CAREER, AS WELL AS THE REST OF THE TEAM, IT'S JOINED US ON THIS MISSION. WE ARE REALLY SOLVING A VERY CRITICAL PROBLEM IN SUPPLY CHAIN, A VERY SIMPLE AND DIRECT FORM FACTOR. >> PHILOSOPHICALLY, BUT ALSO FROM AN ENGINEERING PERSPECTIVE, WHY IS THE DIRECTION YOU ARE GOING BETTER THAN THE USE CASE OF A HUMANOID ROBOT, SUCH AS OPTIMISTS IN THE WAREHOUSE OR MANUFACTURING ENVIRONMENT. >> IT'S A GREAT QUESTION. I DON'T KNOW IF ONE IS BETTER OR WORSE THAN THE OTHER. I WOULD SAY THIS, KNOWING TWO VERY DIFFERENT PROBLEMS, WHAT'S UNIQUE ABOUT HUMANS IS THEIR ABILITY TO MANIPULATE AND REASON AT THE EDGE, AND THAT'S

WHERE HUMANOID ROBOT IS VERY
POWERFUL. WHEN YOU LOOK AT WHAT'S MOVED
AROUND IN THE WAREHOUSE, A LOT OF THOSE MATERIAL WAYS HUNDREDS,
IF NOT THOUSANDS, OF POUNDS, AND THAT'S NOT SOMETHING THAT HUMAN
REALLY IS DESIGNED TO DO. THINKING OF WHAT WE ARE
BUILDING IS SOMETHING THAT'S VERY COMPLEMENTARY TO HUMANOID
ROBOTICS OR HUMANS IN GENERAL. >> YOU GOING TO WORK IN LINE IN
A SOPHISTICATED MANNER TO WORK ALONGSIDE THE FUTURE.
YOU'VE GOT STRATEGIC INVESTMENT. I'M ASSUMING YOU'VE ALREADY
RAISED $78 MILLION IN FUNDING. HOW MANY MORE ROUNDS OF FUNDING
DO YOU NEED? CHRIS: IT'S UNCLEAR AT THIS POINT. OUR
GOAL IS TO EXECUTE AS QUICKLY AND EFFICIENTLY AS POSSIBLE.
THE NEXT TWO YEARS WILL DEVELOP

THE SYSTEM. INVEST IN THE TEAM
AND LAUNCHED TO A FEW MORE CUSTOMERS. IN THAT TIME, WE WILL BE
GENERATING REVENUE AND THE FUNDING ENVIRONMENT IN TWO
YEARS. WHO KNOWS WHAT THAT WILL BE LIKE, BUT IT'S SAFE TO SAY
FUNDING CAN HELP ACCELERATE THE MISSION. IT'S NOT NECESSARILY
ALWAYS REQUIRED FOR A COMPANY TO EXIST. CAROLINE:
PARTICULARLY IF YOU'RE AIMING TO BE REVENUE-GENERATING, MAYBE
EVEN PROFITABILITY. CHRIS, GREAT EXPERIENCE. YOU
HAVE COME A GREAT PUSHING US FORWARD ON WHAT TO EXPECT.
ED, WHAT HAVE WE GOT? >> FROM ONE TESLA ALUMNI TO
ANOTHER, I TOOK A TRIP ON A BOAT, AN ELECTRIC BOAT FROM
STARTUP ARK LOOKING TO LAUNCH LATER THIS YEAR.
HERE'S WHAT IT'S LIKE.

>> THIS IS THE ARC SPORT, FULLY ELECTRIC, FROM LOS ANGELES-BASED ARC, AND IT'S BUILT FOR WATER SPORTS. BUT IT CAN GO IN SALTWATER. SO WE GOT TO TESTED OUT IN THE SAN FRANCISCO BAY. WITHOUT THE GOLDEN GATE BRIDGE COMING INTO SIGHT, WE TOOK IT UP TO FULL SPEED AND LET IT RIP. IT CAN GET UP TO 40 MILES PER HOUR, BUT IT HAS A SURPRISINGLY INTUITIVE DRIVE-BY-WIRE SYSTEM. IT ALSO LOOKS SIMILAR TO TESLAS IN AESTHETIC AND FUNCTIONALITY. USING FRONT AND REAR CAMERAS, YOU CAN SEE THE FRONT AND CHECK ON THE WAKEBOARD IN THE BACK, OR MAKE SURE NO PASSENGERS HAVE FALLEN OFF. LUCKILY, NONE OF US DID. THE BOAT HAS 500 HORSEPOWER FROM A BATTERY PACK THAT'S ALMOST DOUBLE THE BATTERY

CAPACITY POWERING TESLA CYBER TRUCK. ABOUT FOUR TO SIX HOURS OF DRIVING TIME. TWO AND 58 THOUSAND DOLLARS, THE PRICE IS COMPARABLE TO GAS-POWERED BOATS FROM NAMES LIKE MASTERCRAFT. BUT THE DIRECT CONSUMER SALES MODEL MEANS THERE'S NO DEALER IN THE MIDDLE TAKING A CUT, WHICH MEANS THEY CAN SPEND MORE ON THE DESIGN AND EXPERIENCE ON THE UPSCALE SOUND SYSTEMS AND PLUSH SEATINGS. IT CAN CHARGE TO 80% IN 45 MINUTES. THE BOAT IS DESIGNED BY TEAM OF ENGINEERS, ENDED SHIPPING LATER THIS YEAR TO GO AFTER A $2 BILLION MARKET IN 2024. 258,000 MAY BE EMILY CHANG AND MARK ZUCKERBERG HAVE THEIR EYES ON ONE. COMING UP TECH GIANTS APPLE AND MICRON PAYING A VISIT TO

CHINA AS THE U.S. WRAPS UP CHIP CURB SPREAD. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: I KNOW YOU. EMILY: I KNOW YOU'VE BEEN FASCINATED BY CHINA. WHAT DO YOU KNOW ABOUT WHERE CHINA IS ON AI AND AGI? MARK: I DON'T PERSONALLY KNOW A TON. THERE'S THIS QUESTION OF HOW SHOULD THE U.S. APPROACH KIND OF AI COMPETITION WITH CHINA. WHEN THERE'S ONE STRAIN OF THOUGHT WHICH IS WE NEED TO LOCK IT ALL DOWN. AND I JUST HAPPEN TO THINK THAT THAT'S REALLY WRONG. THE U.S. THRIVES ON JUST OPEN AND DECENTRALIZED INNOVATION. THAT'S HOW WE BUILD AWESOME STUFF. I THINK THE LEADING COMPANY SHOULD WORK WITH THE U.S. GOVERNMENT AND MAKE SURE THAT OUR NATIONAL DEFENSE AND THINGS.

LIKE THAT HAVE A PERPETUAL FIRST MOVER ADVANTAGE ON THE LEADING TECHNOLOGY OF THE WORLD. >> SO WE WIN THE AI WARS THIS WAY. MARK: IF YOU'RE TRYING TO SAY SHOULD THE U.S. TRY TO BE FIVE OR 10 YEARS AHEAD OF CHINA, I JUST DON'T KNOW IF THAT'S A REASONABLE GOAL. SO I'M NOT SURE IF YOU CAN MAINTAIN THAT. WHAT I DO THINK IS A REASONABLE GOAL IS MAINTAINING A PERPETUAL SIX-MONTH TO EIGHT-MONTH LEAD BY MAKING SURE THAT THE AMERICAN COMPANIES AND THE AMERICAN FOLKS WORKING ON THIS CONTINUE PRODUCING THE BEST AI SYSTEM. ED: THAT WAS EMILY CHANG WITH MORE FOR EXCLUSIVE INTERVIEW WITH MARK ZUCKERBERG. YOU CAN TUNE INTO THE SCHOOLS OF INTERVIEW WITH MARK

ZUCKERBERG ONLINE OR ON BLOOMBERG TV TONIGHT AT 6:30 P.M. EASTERN TIME. LET'S KEEP THE CONVERSATION GOING ON CHINA AS CHIP CURVES TIGHTEN. LEADERS FROM APPLE AND MICRON PAID A VISIT TO BEIJING. I WANT TO BRING IN MIKE SHEPARD, WHO LEADS OUR COVERAGE OF THE INTERSECTION OF POLITICS AND TECHNOLOGY. APPLE'S COO JEFF WILLIAMS AND MICRON'S CEO GO TO BEIJING, AND IT TELLS US HOW IMPORTANT DESPITE THE POLITICAL BACKDROP THE MARKET IS IN THE SUPPLY CHAIN IS. IT WAS A GREAT SEGUE INTO OUR DISCUSSION NOW TO HEAR FROM MARK ZUCKERBERG ABOUT THE IMPORTANCE OF CHINA AND THIS TENSION BETWEEN THE GOVERNMENT HERE IN WASHINGTON AND THE INDUSTRY AROUND THE WORLD SEES IN THE WORLD'S

SECOND-LARGEST ECONOMY, WHICH IS AN OPPORTUNITY BOTH IN TERMS OF A LARGE CONSUMER MARKET AND THE IMPORTANCE OF THE PRODUCTION AND SUPPLY CHAIN LINES THAT ARE EMBEDDED IN CHINA AS WELL. SO AS YOU HEAR FROM ZUCKERBERG AND YOU SEE IN THE VISIT OF THESE TWO KEY EXECUTIVES, CHINA IS SUPER IMPORTANT FOR THEIR CONTINUED GROWTH AND DEVELOPMENT. CAROLINE: THEY ARE BOTH PART OF THIS U.S.-CHINA BUSINESS COUNCIL. I'M KIND OF TRYING TO UNDERSTAND HOW MUCH THAT SORT OF A COUNSEL REALLY ACHIEVES. HOW MUCH THEY ARE ABLE TO GET BUSINESS DONE AMID THE TIT FOR TAT FROM A GEOPOLITICAL PERSPECTIVE. >> THAT'S A GREAT QUESTION BECAUSE YOU DO SEE ALL THESE CONCRETE ACTIONS EMANATING FROM THE BIDEN ADMINISTRATION IN THE

FORM OF EXPERT RESTRICTIONS.
THESE ARE MEASURED IN CURBING CHINA'S ACCESS TO ADVANCED
TECHNOLOGY, ESPECIALLY SEMICONDUCTORS, WITH THE
TECHNOLOGY LIKE ARTIFICIAL INTELLIGENCE. MARK ZUCKERBERG
WAS JUST TALKING ABOUT. NOW HAVING THIS U.S.
CHINA BUSINESS COUNCIL MEET WITH VERY SENIOR OFFICIALS,
INCLUDING THE VICE PREMIER AND THE FOREIGN MINISTER. THESE ARE
IMPORTANT OFFICIALS TO MEET AT IT CARRIES SOME SYMBOLISM AND
ALLOWS THE CHINESE TO CONVEY TO THE BUSINESS COMMUNITY AT A
HIGH LEVEL THAT WE STILL NEED YOU.
WE REALIZE POLITICALLY THERE ARE SOME TENSIONS, BUT WE DO NOT
WANT TO SEE THIS DECOUPLING THAT SOME IN WASHINGTON HAVE
BEEN PUSHING FOR. >> WE CAN GET AWAY FROM THE U.S.
PRESIDENTIAL ELECTION, BUT ONE

STRATEGY IS ALSO TO LEAN ON ITS ALLIES IN RESPECT TO TECH CURVES IN CHINA. WHAT'S THE CHATTER IN THAT RESPECT IN D.C.? >> THAT'S A GREAT QUESTION. WHAT NOW WE ARE SEEING IS A BIT MORE RELUCTANT, AND ESCALATING THOSE RESTRICTIONS ON TECHNOLOGY. WE SEE PUSHBACK FROM DUTCH IN EFFORTS FROM THE U.S. TO GET THE MAKERS OF THE CHIPMAKING MACHINERY TO DIAL BACK ON SERVICING AND THE SENDING OF SPARE PARTS TO CHINA FOR SOME OF THOSE MACHINES USED IN THE PRODUCTION AND FABRICATION OF SEMICONDUCTORS. >> ALL EYES ON THE DUTCH AND JAPANESE. MIKE SHEPPARD, WE SO APPRECIATED. THANK YOU. THAT DOES IT FOR THIS VERY BUSY ADDITIONAL BLOOMBERG TECHNOLOGY. >> VERY GLOBAL.

LONDON, NEW YORK.
CHECK OUT THE POD. BIG SHOUT OUT TO THE POD. WHERE
YOU GET YOUR PODCAST. A LOT STILL TO COME THIS WEEK IN
EARNINGS. THIS IS BLOOMBERG TECHNOLOGY.

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