From Mahard where Innovation of Money and Power Collie in Silicon Valley, NBN.

From Mahard where Innovation of Money and Power Collie in Silicon Valley, NBN.

This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

I'm Caroine Heidel, Bloomberg's world headquarters in New York, and Ludlow He's off.

I'm Caroine Heidel, Bloomberg's world headquarters in New York, and Ludlow He's off.

This is Bloomberg Technology.

This is Bloomberg Technology.

Coming up, will bring you the full recap from Apple's annual Developers Conference as shares rise to a record following the company's event.

Coming up, will bring you the full recap from Apple's annual Developers Conference as shares rise to a record following the company's event.

Plus will break down comments from Elon Muskers.

Plus will break down comments from Elon Muskers.

He says he would ban Apple devices from his companies if open ai is integrated into the operating system and troubled French IT firm atos it picks a winner for its bailout. We'll discuss that and the state of French tech and so much more throughout this hour. First, let's check in on the French markets. Let's check in on the macro perspective. More broadly, look a little bit of anxiety as we run towards the federal reserve that CPI print, but more broadly managing to see tech once again on top.

He says he would ban Apple devices from his companies if open ai is integrated into the operating system and troubled French IT firm atos it picks a winner for its bailout. We'll discuss that and the state of French tech and so much more throughout this hour. First, let's check in on the French markets. Let's check in on the macro perspective. More broadly, look a little bit of anxiety as we run towards the federal reserve that CPI print, but more broadly managing to see tech once again on top.

Thanks to Apple. Of course, We're up.

Thanks to Apple. Of course, We're up.

Two tenser percent on the NASDAK the cap forty, though having a woe full time in France, political risk, some anxiety, some rumors swirling that perhaps even Macron could step down if indeed that legislative vote that he has just called doesn't go his way, but that has been suppressed and denied by people close to him. But it was still off by one and a quarter percent in France. We go to some interesting fundraising and news coming from France. A little bit later in the show, Crypto is under pressure, off by almost four percent. Interesting correlations. Basically, when bonds sell off, so does bitcoin, and bonds are selling off today, Crypto off by some four percent. As we head towards those macro events, move on and have a look at what's happening on individual movers, and I'm only singling out one. I'm looking at Apple rising to yet a new record high. We're now up more than five percent. I thought yesterday we were a little bit like un or inspired by some of the announcements coming from WWDC, but seemingly we are now thinking this.

Two tenser percent on the NASDAK the cap forty, though having a woe full time in France, political risk, some anxiety, some rumors swirling that perhaps even Macron could step down if indeed that legislative vote that he has just called doesn't go his way, but that has been suppressed and denied by people close to him. But it was still off by one and a quarter percent in France. We go to some interesting fundraising and news coming from France. A little bit later in the show, Crypto is under pressure, off by almost four percent. Interesting correlations. Basically, when bonds sell off, so does bitcoin, and bonds are selling off today, Crypto off by some four percent. As we head towards those macro events, move on and have a look at what's happening on individual movers, and I'm only singling out one. I'm looking at Apple rising to yet a new record high. We're now up more than five percent. I thought yesterday we were a little bit like un or inspired by some of the announcements coming from WWDC, but seemingly we are now thinking this.

Will drive the purchases of new phones.

Will drive the purchases of new phones.

That stick with IT shares as we hit this record. We want to delve into the AI announcements, some of it mixed, but one tech Titan has a pretty hot take, you know, Musk saying he'd ban Apple devices from his companies if open AI's artificial intelligence software is integrated as the operating system level, calling the tie up security risk.

That stick with IT shares as we hit this record. We want to delve into the AI announcements, some of it mixed, but one tech Titan has a pretty hot take, you know, Musk saying he'd ban Apple devices from his companies if open AI's artificial intelligence software is integrated as the operating system level, calling the tie up security risk.

We want to get into the announcements.

We want to get into the announcements.

We want to get into Elon Musk's take, Bloomberg, Mark German here with the AI breakdown. Kert Wagner, of course, an author on all things Elon and Mark.

We want to get into Elon Musk's take, Bloomberg, Mark German here with the AI breakdown. Kert Wagner, of course, an author on all things Elon and Mark.

I want to start with you because surmise the market reaction.

I want to start with you because surmise the market reaction.

You thought perhaps some of it was a bit lackluster, but the market seems be liking the fact that we.

You thought perhaps some of it was a bit lackluster, but the market seems be liking the fact that we.

Might buy some new iPhones on this.

Might buy some new iPhones on this.

I definitely don't think this is going to drive iphon sixteen sales this fall in any significant way. I do think that over time, this is going to seriously drive sales of follow up iterations of the iPhone, maybe the one after maybe the one after that, maybe the one after that, and.

I definitely don't think this is going to drive iphon sixteen sales this fall in any significant way. I do think that over time, this is going to seriously drive sales of follow up iterations of the iPhone, maybe the one after maybe the one after that, maybe the one after that, and.

Well into the future. I do believe it's going to enable a set of new generation of.

Well into the future. I do believe it's going to enable a set of new generation of.

Apple devices, things like arglasses, home robots, enhanced air pods with AI, and cameras. So this really sets the stage for Apple's future. Now, the most important part here is Apple no longer has to worry about the risk of people switching away from the Apple ecosystem seeking a more aiified phone. Apple now has the same functionality that Samsung has, that Google has, that other players have in terms of deep AI integration into its devices. So I think from that standpoint, it's a positive and that's making the street quite happy. I think they're digesting. There was a lot of stuff on Monday at the Worldwide Developers Conference. I think they've been going through what the Apple announcements were and they see how comprehensive the set of tools that Apple's offering here with a quintessential Apple spin with its privacy standpoint and very deep integration.

Apple devices, things like arglasses, home robots, enhanced air pods with AI, and cameras. So this really sets the stage for Apple's future. Now, the most important part here is Apple no longer has to worry about the risk of people switching away from the Apple ecosystem seeking a more aiified phone. Apple now has the same functionality that Samsung has, that Google has, that other players have in terms of deep AI integration into its devices. So I think from that standpoint, it's a positive and that's making the street quite happy. I think they're digesting. There was a lot of stuff on Monday at the Worldwide Developers Conference. I think they've been going through what the Apple announcements were and they see how comprehensive the set of tools that Apple's offering here with a quintessential Apple spin with its privacy standpoint and very deep integration.

Let's talk about privacy and integration KAT, because privacy has been called into question by one Elon Musk because of the integration with chat ChiPT and can you just keep us up to speed with what Elon Musk is accusing here?

Let's talk about privacy and integration KAT, because privacy has been called into question by one Elon Musk because of the integration with chat ChiPT and can you just keep us up to speed with what Elon Musk is accusing here?

Yeah, Well, Elon is basically saying that if chat GPT is infused at the operating system level of these phones, that you know, it would have access to all of the data on the phone, which would go to Apple and then go to Open AI. What you have to remember, of course, is that Elon has a lot of incentive to you know, seed this idea that this is an unsafe in a privacy issue because he is building a direct competitor to chat GPT with his you know, Xai business that's building grock its own chat pots. So I do think that this is the kind of thing that he is you know, incentivized to do, to to kind of pour cold water on this partnership, to you know, make people question or doubt whether or not this is done above board, because he stands the benefit here with his own business and his own companies building a rival product.

Yeah, Well, Elon is basically saying that if chat GPT is infused at the operating system level of these phones, that you know, it would have access to all of the data on the phone, which would go to Apple and then go to Open AI. What you have to remember, of course, is that Elon has a lot of incentive to you know, seed this idea that this is an unsafe in a privacy issue because he is building a direct competitor to chat GPT with his you know, Xai business that's building grock its own chat pots. So I do think that this is the kind of thing that he is you know, incentivized to do, to to kind of pour cold water on this partnership, to you know, make people question or doubt whether or not this is done above board, because he stands the benefit here with his own business and his own companies building a rival product.

Well, Mark, apart from going to Tim Cook with this, we go to you because I don't know anyone who can out square us up on whether this is a key privacy risk better than you could. Mark. What do you make of some of the accusations and whether or not this integration would open up any privacy concerns.

Well, Mark, apart from going to Tim Cook with this, we go to you because I don't know anyone who can out square us up on whether this is a key privacy risk better than you could. Mark. What do you make of some of the accusations and whether or not this integration would open up any privacy concerns.

Well, first of all, I completely agree with Kurt right. Elon Moss doesn't have the best of relationships with open Ai and Tim Altman, for one, doesn't have the best relationship with Apple and Tim Cook.

Well, first of all, I completely agree with Kurt right. Elon Moss doesn't have the best of relationships with open Ai and Tim Altman, for one, doesn't have the best relationship with Apple and Tim Cook.

He's not a fan of their app store, policies. He's building grock.

He's not a fan of their app store, policies. He's building grock.

Right through his own XAI company, right it's integrated for some users into the exapp right now, so he has an incentive to sort of pour cold water and this idea and raise skepticism. On the other hand, I do believe there are some privacy questions here. I don't think there's many questions about Apple's in house AI large language models.

Right through his own XAI company, right it's integrated for some users into the exapp right now, so he has an incentive to sort of pour cold water and this idea and raise skepticism. On the other hand, I do believe there are some privacy questions here. I don't think there's many questions about Apple's in house AI large language models.

I think they showed in great in great ways how.

I think they showed in great in great ways how.

Private they're on device AI is their own iCloud based AI protection. But once you start working with a third party, you're talking about servers that are powered by Microsoft Azure, you're talking about technology that's powered by OpenAI. There isn't a clearly explained way how Apple can verify the privacy of your data that's input into chat GPT. In fact, when you start moving from Apple's AI models on the phone to the chat GPT models the phone, makes it very clear that you're now in open AI territory.

Private they're on device AI is their own iCloud based AI protection. But once you start working with a third party, you're talking about servers that are powered by Microsoft Azure, you're talking about technology that's powered by OpenAI. There isn't a clearly explained way how Apple can verify the privacy of your data that's input into chat GPT. In fact, when you start moving from Apple's AI models on the phone to the chat GPT models the phone, makes it very clear that you're now in open AI territory.

Right, So, I think the biggest thing you're.

Right, So, I think the biggest thing you're.

Doing right now is warning consumers that your data is being input into a third party provider.

Doing right now is warning consumers that your data is being input into a third party provider.

But they hadn't showed a way to verify the privacy.

But they hadn't showed a way to verify the privacy.

Of that information However, Apple and OpenAI have said that they are keeping that data that's input from the iPhone especially private. They're not logging it, they're not creating data profiles. But it is really the onus really is on open Ai to verify that, and Apple to keep on top of open Ai to make sure that they don't breach any of those terms on the privacy side of that partnership, which I honestly think they'll do.

Of that information However, Apple and OpenAI have said that they are keeping that data that's input from the iPhone especially private. They're not logging it, they're not creating data profiles. But it is really the onus really is on open Ai to verify that, and Apple to keep on top of open Ai to make sure that they don't breach any of those terms on the privacy side of that partnership, which I honestly think they'll do.

Cut.

Cut.

Maybe therefore there is some reason to the shouting that's going on on social media.

Maybe therefore there is some reason to the shouting that's going on on social media.

Buy it on must but also cut. We're a bit immune to it. We've had it on musks.

Buy it on must but also cut. We're a bit immune to it. We've had it on musks.

Throw some Bob comments via to Tim Cook in the past, of course, about perhaps the way in which the app store is run. Know that he's actually suing open Ai. How likely do you think it is that he would pad Apple iPhones across these six companies.

Throw some Bob comments via to Tim Cook in the past, of course, about perhaps the way in which the app store is run. Know that he's actually suing open Ai. How likely do you think it is that he would pad Apple iPhones across these six companies.

I mean, this is someone who, as we know Caroline is not afraid of controversy and conflict and picking fights with other very rich and powerful people, Tim Cook being one, Sam Altman, Mark Zuckerberg, the list goes on and on. So I do think it's the kind of thing that you know he might do to try to prove a point or to make a point. And you know, for him, he's now even sort of hinting at, oh, maybe maybe he would build his own phone someday, right, like maybe he would partner with someone for a phone. I think this is very Elon. It's on brand for him, right. He sort of picks these fights. He does it very publicly. He makes these grand claims or aspirations, and then you know, when push comes to show, we'll see what he does. But I don't think it's the kind of thing that you know, for him, it's not a huge skin off his back, right if it makes the point he's trying to make. And I think, as Mark and I have pointed out, that's the goal here, is to sort of cast doubt on this whole partnership, to cast down on these other companies that are considered rivals of his, and to do so in a very public public way.

I mean, this is someone who, as we know Caroline is not afraid of controversy and conflict and picking fights with other very rich and powerful people, Tim Cook being one, Sam Altman, Mark Zuckerberg, the list goes on and on. So I do think it's the kind of thing that you know he might do to try to prove a point or to make a point. And you know, for him, he's now even sort of hinting at, oh, maybe maybe he would build his own phone someday, right, like maybe he would partner with someone for a phone. I think this is very Elon. It's on brand for him, right. He sort of picks these fights. He does it very publicly. He makes these grand claims or aspirations, and then you know, when push comes to show, we'll see what he does. But I don't think it's the kind of thing that you know, for him, it's not a huge skin off his back, right if it makes the point he's trying to make. And I think, as Mark and I have pointed out, that's the goal here, is to sort of cast doubt on this whole partnership, to cast down on these other companies that are considered rivals of his, and to do so in a very public public way.

Well, he's got the public's attention for now, so too does Apple. From WWDC, Mark German, great round, Loock Kirk Wagner with all the insights on Elon's ink, we appreciate it. Meanwhile, we've just got some breaking news. We'll keep you up to date with what is currently happening. From a legal perspective, Hunter Biden's jury tells the court that it hasn't eed reached a verdict in the gun case regarding Hunter Biden. We will bring you the updates as and when we receive them. For now, though, we stick to our knitting, which is technology.

Well, he's got the public's attention for now, so too does Apple. From WWDC, Mark German, great round, Loock Kirk Wagner with all the insights on Elon's ink, we appreciate it. Meanwhile, we've just got some breaking news. We'll keep you up to date with what is currently happening. From a legal perspective, Hunter Biden's jury tells the court that it hasn't eed reached a verdict in the gun case regarding Hunter Biden. We will bring you the updates as and when we receive them. For now, though, we stick to our knitting, which is technology.

On this show. Navilla popol is with US.

On this show. Navilla popol is with US.

Senior research director with IDC to get her read on yesterday's anounments at WWDC. And I think what the question for me in many ways is why the market is loving it so much when initially we thought there's no wild factor here.

Senior research director with IDC to get her read on yesterday's anounments at WWDC. And I think what the question for me in many ways is why the market is loving it so much when initially we thought there's no wild factor here.

Hi, Calyne, thanks for having me. You know you're so right because I've been like absorbing all this information as I'm sure everyone else here.

Hi, Calyne, thanks for having me. You know you're so right because I've been like absorbing all this information as I'm sure everyone else here.

I think it was really big, is you know?

I think it was really big, is you know?

Yesterday there might have been a lackluster response because, like you said, there wasn't any brand new feature or use case that we haven't seen yet right from the other platforms or the other players in the market. But what to me really stood I No, I think what's catching on. You know, the wave here is this is a big, big move. It's a bold, you know, step forward for Apple. They Yes, sure they were you know, behind the curve a little bit. But I think the way they've come out right now, they've told you know, what Apple does best, right, They've told a really compelling consumer story most consumers aren't really aware about, you know, what's generated AI and what it can do. What I think Apple did that, you know, was his unius on their part is the way they integrated it into the user experience, which is of course central to Apple's you know history, and now it's always been about the user experience, and it's about how bring me an AI on device with everything that we do right and everyday apps that we have without having to go somewhere click on a different app or chatbot. It's just everything integrated. And then of course there's strong message on you know, if you do it with Apple Intelligence, it's going to be private and secure.

Yesterday there might have been a lackluster response because, like you said, there wasn't any brand new feature or use case that we haven't seen yet right from the other platforms or the other players in the market. But what to me really stood I No, I think what's catching on. You know, the wave here is this is a big, big move. It's a bold, you know, step forward for Apple. They Yes, sure they were you know, behind the curve a little bit. But I think the way they've come out right now, they've told you know, what Apple does best, right, They've told a really compelling consumer story most consumers aren't really aware about, you know, what's generated AI and what it can do. What I think Apple did that, you know, was his unius on their part is the way they integrated it into the user experience, which is of course central to Apple's you know history, and now it's always been about the user experience, and it's about how bring me an AI on device with everything that we do right and everyday apps that we have without having to go somewhere click on a different app or chatbot. It's just everything integrated. And then of course there's strong message on you know, if you do it with Apple Intelligence, it's going to be private and secure.

But that privacy and security issue, do you think that that's in any way You're going to be questioned by what Musk is currently saying. Do you think it might put off people going for the iPhone sixteen?

But that privacy and security issue, do you think that that's in any way You're going to be questioned by what Musk is currently saying. Do you think it might put off people going for the iPhone sixteen?

You know, you know, Elon Musk will be Elon Musk right, like you just said in the earlier segment, there's definitely going to be a lot of talk going that it's going to be around this, but I think Apple's messaging was clear right that if you using AI, the way they have shown this and everything that they've shown yesterday was it's going to give you a personalized, customized experience. It's going to keep most of things on device. It's only when you because that's where they're not using. I think there's a lot of confusion, and I was like looking into this myself earlier this morning. We have our team on ground at Apple Park to verify, you know, what is it the models that are being used in all of Apple Intelligence and all the features that we saw right, what are the different whether it's gen mojis, whether it's the summarization, description, search, everything that's on device, it's based on Apple's own AI models. It's only the chat, GPT and open AI comes in when you're trying to prompt Siri for a question that serie can't use the information that's on your device to answer, or Apple's own AI model, and that's the opt in feature which you're gonna give you user or serie access or you know, give your permission to access chat GBT.

You know, you know, Elon Musk will be Elon Musk right, like you just said in the earlier segment, there's definitely going to be a lot of talk going that it's going to be around this, but I think Apple's messaging was clear right that if you using AI, the way they have shown this and everything that they've shown yesterday was it's going to give you a personalized, customized experience. It's going to keep most of things on device. It's only when you because that's where they're not using. I think there's a lot of confusion, and I was like looking into this myself earlier this morning. We have our team on ground at Apple Park to verify, you know, what is it the models that are being used in all of Apple Intelligence and all the features that we saw right, what are the different whether it's gen mojis, whether it's the summarization, description, search, everything that's on device, it's based on Apple's own AI models. It's only the chat, GPT and open AI comes in when you're trying to prompt Siri for a question that serie can't use the information that's on your device to answer, or Apple's own AI model, and that's the opt in feature which you're gonna give you user or serie access or you know, give your permission to access chat GBT.

So I think the.

So I think the.

Way they have messaged it is pretty clear that everything that you do on the Apple device will be secure. And even when Apple or the device can't use its own you know, on device AI model, it's going to use Apples Secure cloud uh to you know, personalized clouds to to be able to run those more complicated AI models. But Chat g I think.

Way they have messaged it is pretty clear that everything that you do on the Apple device will be secure. And even when Apple or the device can't use its own you know, on device AI model, it's going to use Apples Secure cloud uh to you know, personalized clouds to to be able to run those more complicated AI models. But Chat g I think.

It's it was.

It's it was.

It was very segmented in a different way that only you know used during serie prompts NEVLA.

It was very segmented in a different way that only you know used during serie prompts NEVLA.

What's interesting is this is a global company with a lot of focus on China, and I'm interested is to longer term, you know that going to perhaps be more agnostic about which large language model they use, adopt or indeed build their own.

What's interesting is this is a global company with a lot of focus on China, and I'm interested is to longer term, you know that going to perhaps be more agnostic about which large language model they use, adopt or indeed build their own.

But can this go live in China? Will it stimulate demand in China?

But can this go live in China? Will it stimulate demand in China?

So the key you know, and again like we were talking to our China team this morning, because Chat GBT isn't available in China right now. With this iteration, you know, it's not going to benefit the upgrade cycle in China with the with the device this year. However, the fact that Apple's in AI, the fact that Apple is doing these things, it's going to benefit the consumer perception which was taking you know, a negative turn, especially in China because consumers are you know, placing AI as a driving factor in their device is in terms of purchasing. So I think this this year, the upgrade cycle will probably be more impacted because as they said, it's going to be available in the fall and only in supporting the English language. So countries like US, UK or any consumers that are primarily English driven, it's going to drive because there's plenty of you know users out there with iPhone eleven and iPhone twelve. Because the average first cycle we're still looking at about three to four years, right, so there's any of those users that will you know, want these new devices, even if it's just English support.

So the key you know, and again like we were talking to our China team this morning, because Chat GBT isn't available in China right now. With this iteration, you know, it's not going to benefit the upgrade cycle in China with the with the device this year. However, the fact that Apple's in AI, the fact that Apple is doing these things, it's going to benefit the consumer perception which was taking you know, a negative turn, especially in China because consumers are you know, placing AI as a driving factor in their device is in terms of purchasing. So I think this this year, the upgrade cycle will probably be more impacted because as they said, it's going to be available in the fall and only in supporting the English language. So countries like US, UK or any consumers that are primarily English driven, it's going to drive because there's plenty of you know users out there with iPhone eleven and iPhone twelve. Because the average first cycle we're still looking at about three to four years, right, so there's any of those users that will you know, want these new devices, even if it's just English support.

I'm our English speaking.

I'm our English speaking.

User, Nobela keeping it global for us. We thank you so much.

User, Nobela keeping it global for us. We thank you so much.

Nombilla Popel, thank you, Senior research director with IDC. French AI startup misrab It's raised six hundred and forty four million dollars in a new funding round that now values the company at close to six billion euros. The round, led by Bench Capital Firm and General Catalyst, give us a company additional resources to take on bigger global players such as of course open AI here in the US, mister Roll is France's prized AI champion. It's attracted more than one billion euros in investment in this last year alone. Meanwhile, there's a less prize French company right now.

Nombilla Popel, thank you, Senior research director with IDC. French AI startup misrab It's raised six hundred and forty four million dollars in a new funding round that now values the company at close to six billion euros. The round, led by Bench Capital Firm and General Catalyst, give us a company additional resources to take on bigger global players such as of course open AI here in the US, mister Roll is France's prized AI champion. It's attracted more than one billion euros in investment in this last year alone. Meanwhile, there's a less prize French company right now.

Oh, indeed, we do have some breaking news.

Oh, indeed, we do have some breaking news.

Coming from the US, So before we head back out to France, I just want to have a look that Hunter Biden hasn't even convicted of gun charger by a jury in a Delaware trial. The jury took three hours to reach a verdict against the President's son, and Hunter Biden still faces a separate tax crime trial in California. We now want to go out to Katie Lyons, who has been standing by for us in Washington, and Kayley.

Coming from the US, So before we head back out to France, I just want to have a look that Hunter Biden hasn't even convicted of gun charger by a jury in a Delaware trial. The jury took three hours to reach a verdict against the President's son, and Hunter Biden still faces a separate tax crime trial in California. We now want to go out to Katie Lyons, who has been standing by for us in Washington, and Kayley.

The impact of this could be significant.

The impact of this could be significant.

Caroline Hunter Biden here found guilty of all three counts with which he was charged. This is the first time in history that a child of a sitting president has been convicted in federal court. Of course, this all stems from his purchase of a gun in twenty eighteen when he was addicted, according to prosecutors, to crack cocaine. And this jury has indeed agreed with the prosecution, finding him guilty of these three crimes, which he will be sentenced for not today but in a number of weeks. It potentially carries a maximum sentence of twenty five years in prison, although it's unlikely that maximum sentence would be given for a first time offender. But obviously this has massive both personal and political implications for the incumbent president. Of course, this is the son of Joe Biden we are talking about, could potentially bring political ramification to him as well, in addition to a great deal of personal difficulty. We have heard from President Biden affirmed just days ago that he would not intervene and pardon his son if he was indeed found guilty as he has been today. There could potentially be some political upside here in that This, of course, follows just less than two weeks ago Donald Trump being found guilty in the court in New York of thirty four felony counts and allegations from Trump and other Republicans that the justice system has been weaponized against Donald Trump. But it's the same justice system that has now found Hunter Biden guilty of a number of crimes, so potentially it throws some cold water on that argument. Still, though it does shine uncomfortable spotlight on the president's family. And this also is just one case in which Hunter Biden had been charged with crimes. He does face a separate trial in September on tax crimes.

Caroline Hunter Biden here found guilty of all three counts with which he was charged. This is the first time in history that a child of a sitting president has been convicted in federal court. Of course, this all stems from his purchase of a gun in twenty eighteen when he was addicted, according to prosecutors, to crack cocaine. And this jury has indeed agreed with the prosecution, finding him guilty of these three crimes, which he will be sentenced for not today but in a number of weeks. It potentially carries a maximum sentence of twenty five years in prison, although it's unlikely that maximum sentence would be given for a first time offender. But obviously this has massive both personal and political implications for the incumbent president. Of course, this is the son of Joe Biden we are talking about, could potentially bring political ramification to him as well, in addition to a great deal of personal difficulty. We have heard from President Biden affirmed just days ago that he would not intervene and pardon his son if he was indeed found guilty as he has been today. There could potentially be some political upside here in that This, of course, follows just less than two weeks ago Donald Trump being found guilty in the court in New York of thirty four felony counts and allegations from Trump and other Republicans that the justice system has been weaponized against Donald Trump. But it's the same justice system that has now found Hunter Biden guilty of a number of crimes, so potentially it throws some cold water on that argument. Still, though it does shine uncomfortable spotlight on the president's family. And this also is just one case in which Hunter Biden had been charged with crimes. He does face a separate trial in September on tax crimes.

Caroline, Yes, exactly that one in California. Can you give us a breakdown of what next? Then, Kaylee posts this verdict.

Caroline, Yes, exactly that one in California. Can you give us a breakdown of what next? Then, Kaylee posts this verdict.

Be awaiting sentencing, Caroline, is really the question here? As I mentioned, twenty five years is the maximum. Two of these gun charges carries a maximum sentence of ten years each, the third a maximum sentence of five years. But this is the first time that Biden has a Hunter Biden that is, has been convicted of a crime, so that could bring potentially more leniency, But really will be looking to see what ultimately the judge decides is it will be up to that one individual in terms of the sentencing. Will also be looking to see whether there is an appeal on the part of the defense and whether or not they then look ahead to that trial that is set to happen in September. If there is an appellate process still paying out in this case, could they successfully delay that trial potentially though they have not yet had success in doing so, And It's worth keeping in mind that September tax trial he will be facing in California brings us ever closer to the presidential election in which Joe Biden, his father, is trying to seek a re election for a second term, and that timing potentially could add even greater political difficulty than what we're seeing here today with the conviction of the president's son the first time in history. Again, Caroline, that this has happened to.

Be awaiting sentencing, Caroline, is really the question here? As I mentioned, twenty five years is the maximum. Two of these gun charges carries a maximum sentence of ten years each, the third a maximum sentence of five years. But this is the first time that Biden has a Hunter Biden that is, has been convicted of a crime, so that could bring potentially more leniency, But really will be looking to see what ultimately the judge decides is it will be up to that one individual in terms of the sentencing. Will also be looking to see whether there is an appeal on the part of the defense and whether or not they then look ahead to that trial that is set to happen in September. If there is an appellate process still paying out in this case, could they successfully delay that trial potentially though they have not yet had success in doing so, And It's worth keeping in mind that September tax trial he will be facing in California brings us ever closer to the presidential election in which Joe Biden, his father, is trying to seek a re election for a second term, and that timing potentially could add even greater political difficulty than what we're seeing here today with the conviction of the president's son the first time in history. Again, Caroline, that this has happened to.

The child of a sitting president, and as he said, already, President Biden has said he would not pardon. But I'm interested as to whether we will hear from him, if there's any idea as to whether he will speak on the matter.

The child of a sitting president, and as he said, already, President Biden has said he would not pardon. But I'm interested as to whether we will hear from him, if there's any idea as to whether he will speak on the matter.

Well, he does have a scheduled speaking engagement today, He'll actually be speaking at a gun safety event here in Washington, and he's set to travel to the G seven in Italy. This is where the personal and the presidential duty potentially come into conflict, Caroline is obviously this is likely a very difficult day for the Biden family. We will see if he makes any statement on this before departing to Italy, but when he does so, attends the G seven that will be carrying out the duties of the presidency, trying to focus on geopolitics, foreign policy, all of the other responsibilities of this office, while also having to deal with the difficulty of having your son the only living person from the car crash that killed his first wife and daughter many years ago. And of course, Bobiden, who had survived that crash, died of cancer back in twenty fifteen, and that is when many of Hunter Biden's addiction problems really began, and that really was what was at the heart of this case, Caroline. This is a story of someone who was struggling with an addiction. This was very painful as we saw ex girlfriends, ex wives, even Naomi Biden, hunter Biden's daughter, testifying throughout this trial about the personal difficulty and what he was grappling with over the course of those years that he was an addict, And obviously just shines a very uncomfortable spotlight on the first family.

Well, he does have a scheduled speaking engagement today, He'll actually be speaking at a gun safety event here in Washington, and he's set to travel to the G seven in Italy. This is where the personal and the presidential duty potentially come into conflict, Caroline is obviously this is likely a very difficult day for the Biden family. We will see if he makes any statement on this before departing to Italy, but when he does so, attends the G seven that will be carrying out the duties of the presidency, trying to focus on geopolitics, foreign policy, all of the other responsibilities of this office, while also having to deal with the difficulty of having your son the only living person from the car crash that killed his first wife and daughter many years ago. And of course, Bobiden, who had survived that crash, died of cancer back in twenty fifteen, and that is when many of Hunter Biden's addiction problems really began, and that really was what was at the heart of this case, Caroline. This is a story of someone who was struggling with an addiction. This was very painful as we saw ex girlfriends, ex wives, even Naomi Biden, hunter Biden's daughter, testifying throughout this trial about the personal difficulty and what he was grappling with over the course of those years that he was an addict, And obviously just shines a very uncomfortable spotlight on the first family.

Very personal, Kayleie, but very political in nature. And I therefore wonder what impact you think it will have longer term as we enter the election.

Very personal, Kayleie, but very political in nature. And I therefore wonder what impact you think it will have longer term as we enter the election.

It's going to be hard to tell immediately, Caroline, as it has been hard to tell just in the last few weeks what the real impact of Donald Trump's own felony conviction has been, as we haven't seen any great shift in pulling thus far, so we'll see if it actually has a material impact on the way that Joe Biden is pulling. What I would point out here is there is a very important distinction. What we are talking about in this case is a conviction of the sun the president, not someone who has held the office himself or seeking to be president. That is different than Donald Trump, who not only is a former president of the United States, but currently is the presumptive Republican nominee. So while this may complicate the messaging that Joe Biden and other Democrats may want it to have utilized in this election cycle, the idea that Donald Trump is morally questionable by being a convicted felon, perhaps that argument gets more difficult to make when your own son is also convicted of crime, So that could be politically complicated. And of course, there has been a lot of scrutiny in Congress of Hunter Biden and the entire Biden family, a lot of allegations made by many different members as part of the impeachment inquiry that largely seems to have died down, but it'll be interesting to see if this revs anything up in that regard further congressionally as well. All that said, we're really just going to have to be paying attention to the polls. As right now it is June, we still have almost five full months to go before the election on November fifth, and a lot could happen between now and then, including a second criminal trial of Hunter Biden.

It's going to be hard to tell immediately, Caroline, as it has been hard to tell just in the last few weeks what the real impact of Donald Trump's own felony conviction has been, as we haven't seen any great shift in pulling thus far, so we'll see if it actually has a material impact on the way that Joe Biden is pulling. What I would point out here is there is a very important distinction. What we are talking about in this case is a conviction of the sun the president, not someone who has held the office himself or seeking to be president. That is different than Donald Trump, who not only is a former president of the United States, but currently is the presumptive Republican nominee. So while this may complicate the messaging that Joe Biden and other Democrats may want it to have utilized in this election cycle, the idea that Donald Trump is morally questionable by being a convicted felon, perhaps that argument gets more difficult to make when your own son is also convicted of crime, So that could be politically complicated. And of course, there has been a lot of scrutiny in Congress of Hunter Biden and the entire Biden family, a lot of allegations made by many different members as part of the impeachment inquiry that largely seems to have died down, but it'll be interesting to see if this revs anything up in that regard further congressionally as well. All that said, we're really just going to have to be paying attention to the polls. As right now it is June, we still have almost five full months to go before the election on November fifth, and a lot could happen between now and then, including a second criminal trial of Hunter Biden.

Kaylie, We are, of course a business network. Is there any implication on companies surrounding gunlow and indeed the way that might direct travel for purchases, for demand for.

Kaylie, We are, of course a business network. Is there any implication on companies surrounding gunlow and indeed the way that might direct travel for purchases, for demand for.

Supply, That's an interesting question, Caroline. Obviously, Joe Biden is largely a president who has spoken about gun safety. He will in fact be doing so at in every town for a gun safety event later on today, which of course is affiliated with Michael Bloomberg, the founder and.

Supply, That's an interesting question, Caroline. Obviously, Joe Biden is largely a president who has spoken about gun safety. He will in fact be doing so at in every town for a gun safety event later on today, which of course is affiliated with Michael Bloomberg, the founder and.

Majority owner of Bloomberg LP.

Majority owner of Bloomberg LP.

But largely he is a president that has advocated for greater gun control measures, which is difficult for perhaps explanation wise, when your own son illegally purchased a firearmist, as he was found guilty of doing today with this crack cocaine addiction. Will it, though, materially change anything around gun laws, Caroline, It's very unlikely, given that no matter what developments we have seen in the gun violence area, mass shooting after mass shooting in the United States, nothing really has ever done legislatively. Joe Biden has signed a number of executive orders looking to restrain gun purchases in some areas, but it's something that you really can't crack down on with that congressional approval, and with Republicans in control of the House, that is unlikely to be happening, at least in this Congress.

But largely he is a president that has advocated for greater gun control measures, which is difficult for perhaps explanation wise, when your own son illegally purchased a firearmist, as he was found guilty of doing today with this crack cocaine addiction. Will it, though, materially change anything around gun laws, Caroline, It's very unlikely, given that no matter what developments we have seen in the gun violence area, mass shooting after mass shooting in the United States, nothing really has ever done legislatively. Joe Biden has signed a number of executive orders looking to restrain gun purchases in some areas, but it's something that you really can't crack down on with that congressional approval, and with Republicans in control of the House, that is unlikely to be happening, at least in this Congress.

The coolest of being put through the test at the moment, Kaylee, Are we likely to anticipate more of this as a political narrative, as a political way of doing business here in the United States.

The coolest of being put through the test at the moment, Kaylee, Are we likely to anticipate more of this as a political narrative, as a political way of doing business here in the United States.

Yeah, it's an interesting question, Caroline, because we are at this really unique moment in time where we now have not just a former president and presumptive nominee who has been convicted of crimes, but a president's son convicted of crimes within the same week, both or with two week period. Both of these obviously incredibly historic. We have never seen anything like this before. It will be interesting to see how this alters the narrative because after Donald Trump's conviction of thirty four accounts in New York just less than two weeks ago, there has been a narrative about a justice system that has been weaponized or targeting Donald Trump, whether or not that is true. As Joe Biden did not actually have the power to say direct a New York State case against Donald Trump, he could theoretically have the power to step in with this Special Council investigation into Hunter Biden, with this trial, potentially with the pardon, and he has declined to do so. He has declined to intervene as he has really been trying to speak a message of preserving faith in the justice system and allowing it to do its work. So now that this has happened to his son being found guilty of three crimes here in Delaware, it will be interesting to see if it does indeed alter the narrative around the way the justice system is working. Because you can no longer say it's only going after Donald Trump.

Yeah, it's an interesting question, Caroline, because we are at this really unique moment in time where we now have not just a former president and presumptive nominee who has been convicted of crimes, but a president's son convicted of crimes within the same week, both or with two week period. Both of these obviously incredibly historic. We have never seen anything like this before. It will be interesting to see how this alters the narrative because after Donald Trump's conviction of thirty four accounts in New York just less than two weeks ago, there has been a narrative about a justice system that has been weaponized or targeting Donald Trump, whether or not that is true. As Joe Biden did not actually have the power to say direct a New York State case against Donald Trump, he could theoretically have the power to step in with this Special Council investigation into Hunter Biden, with this trial, potentially with the pardon, and he has declined to do so. He has declined to intervene as he has really been trying to speak a message of preserving faith in the justice system and allowing it to do its work. So now that this has happened to his son being found guilty of three crimes here in Delaware, it will be interesting to see if it does indeed alter the narrative around the way the justice system is working. Because you can no longer say it's only going after Donald Trump.

It has come for a Biden as well.

It has come for a Biden as well.

Kayleie Lynes, just so much information to digest and reacting in the moment to this finding from the court and from the jury We thank you very much. Indeed, all Things Washington now we return to all Things Technology. Coming up, we're going to be deciding, well the direction.

Kayleie Lynes, just so much information to digest and reacting in the moment to this finding from the court and from the jury We thank you very much. Indeed, all Things Washington now we return to all Things Technology. Coming up, we're going to be deciding, well the direction.

Of travel for Apple going forward.

Of travel for Apple going forward.

Laura Martin and Needham joining us with her reaction on Apple's long awaited AI strategy. Well, she makes the iPhone maker partnership with open AI.

Laura Martin and Needham joining us with her reaction on Apple's long awaited AI strategy. Well, she makes the iPhone maker partnership with open AI.

That's next.

That's next.

Plus, we already know where Elon Musk stands on Apple's newly announced partnership, but he's getting some empathy. New e State Minister for AI and Digital Economy, who spoke to Bloomberg earlier today, just.

Plus, we already know where Elon Musk stands on Apple's newly announced partnership, but he's getting some empathy. New e State Minister for AI and Digital Economy, who spoke to Bloomberg earlier today, just.

Tic a listen.

Tic a listen.

What Elon said was, if it turns out that they're going to deploy charg ept and open the eyes infrastructure on the OS level, then there are some security risks. I think given the quality of what they're doing and the secrecy around the advancements that they're pushing forward, it makes a lot of sense for him to think, aren't.

What Elon said was, if it turns out that they're going to deploy charg ept and open the eyes infrastructure on the OS level, then there are some security risks. I think given the quality of what they're doing and the secrecy around the advancements that they're pushing forward, it makes a lot of sense for him to think, aren't.

We welcome back to Bluemberg Technology. I'm Carolin Hide in New York and moments ago with the breaking news that a Delaware jury has reached a verdict finding Hunter Biden guilty of gun charges. Now he was found guilty by a federal court jury and has become the first child of a sitting US president to be convicted of such crimes. Now we know that the verdict came less than two weeks after his father's chief rival for the president see Donald Trump was found guilty by New York during his thirty four counts of falsifying business records late last month. Political system intertwines with the legal system, and to do that with us, as bloombergs Greg Farrell, and extraordinary really what we're currently seeing in terms of how the legal system is becoming a focus for both presidential candidates. But this one is novel in terms of the son of a sitting president.

We welcome back to Bluemberg Technology. I'm Carolin Hide in New York and moments ago with the breaking news that a Delaware jury has reached a verdict finding Hunter Biden guilty of gun charges. Now he was found guilty by a federal court jury and has become the first child of a sitting US president to be convicted of such crimes. Now we know that the verdict came less than two weeks after his father's chief rival for the president see Donald Trump was found guilty by New York during his thirty four counts of falsifying business records late last month. Political system intertwines with the legal system, and to do that with us, as bloombergs Greg Farrell, and extraordinary really what we're currently seeing in terms of how the legal system is becoming a focus for both presidential candidates. But this one is novel in terms of the son of a sitting president.

Yes, absolutely, Caroen, It's extraordinary. It's extraordinary because I think Hunter Biden believed he had he you know, was totally he had a deal a year ago to put this behind him, and that fell apart. And it's a question of timing with Donald Trump being charged in several places, it's just so patently would be unfair. It looked the optics would be terrible if Hunter Biden weren't charged and you know, taken to trial.

Yes, absolutely, Caroen, It's extraordinary. It's extraordinary because I think Hunter Biden believed he had he you know, was totally he had a deal a year ago to put this behind him, and that fell apart. And it's a question of timing with Donald Trump being charged in several places, it's just so patently would be unfair. It looked the optics would be terrible if Hunter Biden weren't charged and you know, taken to trial.

How what did you make of the swiftness or not?

How what did you make of the swiftness or not?

Many had felt that perhaps they're coming back a second day, it hadn't been an immediate decision coming from the jury.

Many had felt that perhaps they're coming back a second day, it hadn't been an immediate decision coming from the jury.

Well, I think it's of course, we don't know what goes on in the room, but I think that if they get it in the afternoon, let's think about it. This is a serious thing. Let's not just drump fraternity conclusions. Everybody sleeps on it. This is a normal thing, and they all come back the next day. It's a pretty simple case. And unfortunately for Hunter Biden, he wrote it in a book what his condition was at the time, and he didn't take the stand. So it's really not a surprise in terms of the verdict. It's more, as you pointed out, the magnitude of this, that this strangeness of the world we're in where one former president's been convicted one week and then the son of the current president right now.

Well, I think it's of course, we don't know what goes on in the room, but I think that if they get it in the afternoon, let's think about it. This is a serious thing. Let's not just drump fraternity conclusions. Everybody sleeps on it. This is a normal thing, and they all come back the next day. It's a pretty simple case. And unfortunately for Hunter Biden, he wrote it in a book what his condition was at the time, and he didn't take the stand. So it's really not a surprise in terms of the verdict. It's more, as you pointed out, the magnitude of this, that this strangeness of the world we're in where one former president's been convicted one week and then the son of the current president right now.

I asked this previously of Kayley, and I put it to you as someone who so understands and embodies what the legal system means for US politics, but the US economy as well.

I asked this previously of Kayley, and I put it to you as someone who so understands and embodies what the legal system means for US politics, but the US economy as well.

Is this the way of the land now?

Is this the way of the land now?

Are we going to see far more legal system taking action around political decision making?

Are we going to see far more legal system taking action around political decision making?

Unfortunately, I don't believe necessary in the weaponization of the Justice Department that's been claimed. However, now that we've gone there, now that a local district attorney has riught charges against the former president, it's you know, this is going to get worse before it gets better. I don't think there's going to be cooler heads that are going to prevail. Whoever loses the election in November, might you know, get even more galvanized, or whoever wins to you know, exact some retribution. So it's a concerning time that way, Greg.

Unfortunately, I don't believe necessary in the weaponization of the Justice Department that's been claimed. However, now that we've gone there, now that a local district attorney has riught charges against the former president, it's you know, this is going to get worse before it gets better. I don't think there's going to be cooler heads that are going to prevail. Whoever loses the election in November, might you know, get even more galvanized, or whoever wins to you know, exact some retribution. So it's a concerning time that way, Greg.

We really appreciate you analyzing what is another unprecedented finding here Ander Biden found guilty of gun charges by a federal court jury in Delaware.

We really appreciate you analyzing what is another unprecedented finding here Ander Biden found guilty of gun charges by a federal court jury in Delaware.

Greg Farrell, we appreciate him.

Greg Farrell, we appreciate him.

Meanwhile, let's go back to what we do at Bloomberg. The markets currently seeing course political risk evident over in Europe and France in particular, under pressure, we close the market down with the stocks it's undered off by almost a percentage point France in particular, as Macron calls a key vote and rumors did swirl as to what would be the longevity of his own presidency. He of course has refuted that for now and says that he would remain Now's that one hundred the big tech benchmark currently up at tenth f per percent. Apple guiding us higher. Bitcoin on the downside of by more than four percent as bonds sell off, a key correlation happening, and indeed much trepidation as we look towards a federal reserve decision this week and indeed an inflation print move on some individual stocks for you. Look, we did get some earnings coming out of Autodesk, and not good enough when it comes to this software provider. We're off by five percent. Tesla down by more than three percent. Interesting what we're seeing currently with Tesla and JP Morgan having a note out today really saying that having spoken to investor relations over at the company, they worry that the revenue generation of a robotaxi ain't coming anytime soon.

Meanwhile, let's go back to what we do at Bloomberg. The markets currently seeing course political risk evident over in Europe and France in particular, under pressure, we close the market down with the stocks it's undered off by almost a percentage point France in particular, as Macron calls a key vote and rumors did swirl as to what would be the longevity of his own presidency. He of course has refuted that for now and says that he would remain Now's that one hundred the big tech benchmark currently up at tenth f per percent. Apple guiding us higher. Bitcoin on the downside of by more than four percent as bonds sell off, a key correlation happening, and indeed much trepidation as we look towards a federal reserve decision this week and indeed an inflation print move on some individual stocks for you. Look, we did get some earnings coming out of Autodesk, and not good enough when it comes to this software provider. We're off by five percent. Tesla down by more than three percent. Interesting what we're seeing currently with Tesla and JP Morgan having a note out today really saying that having spoken to investor relations over at the company, they worry that the revenue generation of a robotaxi ain't coming anytime soon.

We're off by more than three percent.

We're off by more than three percent.

But of course Elon Musk, the leader of Tesla, currently distracted by well the frustrations he sees with Apple's relationship with now Open ai and an integration of chatchpt within Apple's operating system.

But of course Elon Musk, the leader of Tesla, currently distracted by well the frustrations he sees with Apple's relationship with now Open ai and an integration of chatchpt within Apple's operating system.

Apple currently up more.

Apple currently up more.

Than six percent a new record high two hundred and five is where we trade. And that's all because of the WWDC conference, which of course opened yesterday with a whole slate of software updates across products, partnership, as I mentioned with Open AI, and of course it's long awaited Apple Intelligence, his CEO Tim Cook.

Than six percent a new record high two hundred and five is where we trade. And that's all because of the WWDC conference, which of course opened yesterday with a whole slate of software updates across products, partnership, as I mentioned with Open AI, and of course it's long awaited Apple Intelligence, his CEO Tim Cook.

Recent developments and generative intelligence and large language models offer powerful capabilities that provide the opportunity to take the experience of using Apple products to new heights. Introducing Apple Intelligence, the new personal intelligence system that makes your most personal products even more useful and delightful.

Recent developments and generative intelligence and large language models offer powerful capabilities that provide the opportunity to take the experience of using Apple products to new heights. Introducing Apple Intelligence, the new personal intelligence system that makes your most personal products even more useful and delightful.

Apparently that video will being short in Apple devices as well. Jackie Devlos who was there on the ground yesterday and now life from San Francisco for us, and it felt in the moment that perhaps there wasn't that wow factor, but today the market showing there is.

Apparently that video will being short in Apple devices as well. Jackie Devlos who was there on the ground yesterday and now life from San Francisco for us, and it felt in the moment that perhaps there wasn't that wow factor, but today the market showing there is.

That's right, Carolina.

That's right, Carolina.

It took the market a little while to catch up. But notice how Tim Cook emphasized the word useful, that theme utility. They mentioned AI for the rest of us, and I think this really showed through in the features that they highlighted yesterday as part of the Apple Intelligence rollout. Let's like, look at the summarization capabilities that we now have, transcription of audio. You can also personalize AI emojis. When you think about just kind of the mass appeal that can have, that was really key. They also emphasized privacy, but outside of the AI features as well, that iOS eighteen upgrade has some pretty cool things coming down the pipeline. For example, you can tap back messages with different emojis, You can schedule messages to be sent later. You can access more apps in different ways in your control center, organize them differently on the home screen. They really gave a lot to people here in this rollout, but look, we were sitting there for an hour and a half before the AI highlights really came through, so there was a lot of anticipation and look, this is their first swing, and from what we could tell, you know, it's just the first step in this broader AI rollout, and many.

It took the market a little while to catch up. But notice how Tim Cook emphasized the word useful, that theme utility. They mentioned AI for the rest of us, and I think this really showed through in the features that they highlighted yesterday as part of the Apple Intelligence rollout. Let's like, look at the summarization capabilities that we now have, transcription of audio. You can also personalize AI emojis. When you think about just kind of the mass appeal that can have, that was really key. They also emphasized privacy, but outside of the AI features as well, that iOS eighteen upgrade has some pretty cool things coming down the pipeline. For example, you can tap back messages with different emojis, You can schedule messages to be sent later. You can access more apps in different ways in your control center, organize them differently on the home screen. They really gave a lot to people here in this rollout, but look, we were sitting there for an hour and a half before the AI highlights really came through, so there was a lot of anticipation and look, this is their first swing, and from what we could tell, you know, it's just the first step in this broader AI rollout, and many.

Felt that actually only sort of name checking open AI for two minutes within that ninety minute thereabouts present, it was trying to suppress the actual real integration but really lean into what it will do for you as a consumer a user. I'm really trying to identify privacy and protection being key, but you know, musk cooling that into.

Felt that actually only sort of name checking open AI for two minutes within that ninety minute thereabouts present, it was trying to suppress the actual real integration but really lean into what it will do for you as a consumer a user. I'm really trying to identify privacy and protection being key, but you know, musk cooling that into.

Question exactly you know Siria was a major highlight because that digital assistant will have the opportunity to basically be able to pull information from Chat GPT when answering questions. Now, you're absolutely right, privacy was highlighted, Caroline.

Question exactly you know Siria was a major highlight because that digital assistant will have the opportunity to basically be able to pull information from Chat GPT when answering questions. Now, you're absolutely right, privacy was highlighted, Caroline.

They made sure to note.

They made sure to note.

That you can opt out of this, that you have to give Siri permission to tap into chat GPT and when you think about the concerns that Elon Musk is raising, well, it does also shine a spotlight on the other questions that Apple has to answer. What exactly happens to the data does open Ai have access to kind of seeing how you interact with the app on the screen. There's a lot that I think people want to know and some of those details will come out, but they were key to actually highlight that users will be asked for permission, their request and informations will not be logged, so of course, really keeping with that Apple privacy ethos.

That you can opt out of this, that you have to give Siri permission to tap into chat GPT and when you think about the concerns that Elon Musk is raising, well, it does also shine a spotlight on the other questions that Apple has to answer. What exactly happens to the data does open Ai have access to kind of seeing how you interact with the app on the screen. There's a lot that I think people want to know and some of those details will come out, but they were key to actually highlight that users will be asked for permission, their request and informations will not be logged, so of course, really keeping with that Apple privacy ethos.

Jackie Davis with a roundup, We thank you so much. It was a long day yesterday and up early with us today. We thank you. Let's keep this conversation going. Laura Marson, Senior Entertainment and Internet Analyst. They wre at Needham and Co. You join us for more after Well, you're a buy on Apple, you've overall think that the price point is going to go even higher than this, to a two hundred and twenty dollars price point. But what happened at the event yesterday and what galvanizes it today?

Jackie Davis with a roundup, We thank you so much. It was a long day yesterday and up early with us today. We thank you. Let's keep this conversation going. Laura Marson, Senior Entertainment and Internet Analyst. They wre at Needham and Co. You join us for more after Well, you're a buy on Apple, you've overall think that the price point is going to go even higher than this, to a two hundred and twenty dollars price point. But what happened at the event yesterday and what galvanizes it today?

Right?

Right?

So, I mean, I think I think we were very disappointed at the Apple generative of AI stuff. First they put it last, As you said, they talked for sixty five minutes about new colors and new things that felt like Snapchat type of functionality, and then in minutes sixty five they started talking about the only thing Wall Street cares about because this company has very anemic growth. They're going to report one percent revenue growth this year, and what we really want to hear was what's going on with jenerator of I that's going to force an iPhone replacement cycle to drive that one percent revenue growth higher to two three four percent? And there is nothing I felt that they'd announced that made consumers want to run out and replace their iPhone And now we have to wait a year because they have an annual replacement cycle. So now if you didn't like what you heard yesterday, you have to wait a year till the next cool generative AI stuff. So I mean, I thought it was a very disappointing day, which is why the shares were down two percent as soon as they finished speaking.

So, I mean, I think I think we were very disappointed at the Apple generative of AI stuff. First they put it last, As you said, they talked for sixty five minutes about new colors and new things that felt like Snapchat type of functionality, and then in minutes sixty five they started talking about the only thing Wall Street cares about because this company has very anemic growth. They're going to report one percent revenue growth this year, and what we really want to hear was what's going on with jenerator of I that's going to force an iPhone replacement cycle to drive that one percent revenue growth higher to two three four percent? And there is nothing I felt that they'd announced that made consumers want to run out and replace their iPhone And now we have to wait a year because they have an annual replacement cycle. So now if you didn't like what you heard yesterday, you have to wait a year till the next cool generative AI stuff. So I mean, I thought it was a very disappointing day, which is why the shares were down two percent as soon as they finished speaking.

Today they're up six percent.

Today they're up six percent.

Maybe because the developers are finding cool ways that they can integrate these functionality into their own individual apps. But I thought it was too little, too late. They continue to be way behind on janitor of AI and they need to catch up.

Maybe because the developers are finding cool ways that they can integrate these functionality into their own individual apps. But I thought it was too little, too late. They continue to be way behind on janitor of AI and they need to catch up.

And they seem to be trying to catch up with for now third party relationships. What is the flow of money here, Laura, Because they're not going to be charging us for the joy of being suddenly able to use chatchipts should we wish to do? How much are they going to be paid and open a How much money are they going to be having to spend or is it good that they don't need all their own GPU hole to a sad extent, Yeah, they say they're.

And they seem to be trying to catch up with for now third party relationships. What is the flow of money here, Laura, Because they're not going to be charging us for the joy of being suddenly able to use chatchipts should we wish to do? How much are they going to be paid and open a How much money are they going to be having to spend or is it good that they don't need all their own GPU hole to a sad extent, Yeah, they say they're.

Going to be using their own servers within the to so to hold on to the iOS data in their own service in the cloud over at Microsoft. So I do think they are still continuing to focus on privacy, but I think the way the money works.

Going to be using their own servers within the to so to hold on to the iOS data in their own service in the cloud over at Microsoft. So I do think they are still continuing to focus on privacy, but I think the way the money works.

Is that they will.

Is that they will.

The way these deals typically work is that Apple will pay the Microsoft Cloud and Chat GPT probably a fixed fee per month, and then they'll put it into your iPhone price. So your iPhone price is going to go from fourteen hundred dollars to fifteen hundred dollars and you'll pay for it upfront. If they find there are heavy users, my guess is they add a monthly tier. You know, I pay twenty dollars a month right now for Chat GPT four. My guess is Apple gets that for a lower price, but they probably search charge heavy users of that particular functionality. I think a lot of people because of the privacy issue, will not use it, will not call out to the cloud to chat GPT.

The way these deals typically work is that Apple will pay the Microsoft Cloud and Chat GPT probably a fixed fee per month, and then they'll put it into your iPhone price. So your iPhone price is going to go from fourteen hundred dollars to fifteen hundred dollars and you'll pay for it upfront. If they find there are heavy users, my guess is they add a monthly tier. You know, I pay twenty dollars a month right now for Chat GPT four. My guess is Apple gets that for a lower price, but they probably search charge heavy users of that particular functionality. I think a lot of people because of the privacy issue, will not use it, will not call out to the cloud to chat GPT.

The Apple doesn't, isn't.

The Apple doesn't, isn't.

It's not costing Apple anymore for those users.

It's not costing Apple anymore for those users.

So maybe this key concern reference bytal Musk will be listened to by some in the crowd. Laura, the reason we love having on the show is the breadth of analysis you do across so many of the tech pays and entertainment.

So maybe this key concern reference bytal Musk will be listened to by some in the crowd. Laura, the reason we love having on the show is the breadth of analysis you do across so many of the tech pays and entertainment.

I'm interested is to you know who is winning the.

I'm interested is to you know who is winning the.

Charge of any of the actual device makers or operating system providers.

Charge of any of the actual device makers or operating system providers.

I mean, is alphabet doing any better with the Google offering? The only thing.

I mean, is alphabet doing any better with the Google offering? The only thing.

That's strategic position for Google. Alphabet is better because they have Cloud, so they get it cheaper because they own it. They have Android, which is the direct competitor to iOS. They have an ad driven business, which in search, which means you have a lot of first party data. They have YouTube in the world's moving to video. As we know, YouTube is the number one streamer and makes a lot of money now. It's the largest subscription streaming service as well as the largest ad driven service, which gives them first party data. So it feels like their strategic position is a lot better. Even if they're sort of inferior at every one of those things, they the fact they do them all gives them really strong, better data on you and also more ways to make money from you. And they don't feel like they're strategically in a box. Apple feels to me like it's strategically in a box. It can't participate in Jenerator AI except for through it's a million of billion five users, and that isn't really true of Google. It feels like it's going to participate across the globe and it's three billion users a day that come in for search.

That's strategic position for Google. Alphabet is better because they have Cloud, so they get it cheaper because they own it. They have Android, which is the direct competitor to iOS. They have an ad driven business, which in search, which means you have a lot of first party data. They have YouTube in the world's moving to video. As we know, YouTube is the number one streamer and makes a lot of money now. It's the largest subscription streaming service as well as the largest ad driven service, which gives them first party data. So it feels like their strategic position is a lot better. Even if they're sort of inferior at every one of those things, they the fact they do them all gives them really strong, better data on you and also more ways to make money from you. And they don't feel like they're strategically in a box. Apple feels to me like it's strategically in a box. It can't participate in Jenerator AI except for through it's a million of billion five users, and that isn't really true of Google. It feels like it's going to participate across the globe and it's three billion users a day that come in for search.

Such great context.

Such great context.

Laura Martin, thank you for joining us, senior Entertainment and Internet Internet analyst over at Needham and Co. Didn't even get onto paramount with her. Next time we were coming up, Masha Boucher's Day one Ventures announces it's biggest fun yet.

Laura Martin, thank you for joining us, senior Entertainment and Internet Internet analyst over at Needham and Co. Didn't even get onto paramount with her. Next time we were coming up, Masha Boucher's Day one Ventures announces it's biggest fun yet.

We're backing from nine female limited partners. We sit down with her.

We're backing from nine female limited partners. We sit down with her.

I mean, well, let's just look at what's happening on the stock market elsewhere. Spotify up a percentage point. Now we're understanding here at Bloomberg. But the company will introduce a new higher price premium plan for some of its users later this year. The plan is going to cost at least five dollars more per month, but it's going to include access to high fidelity audio, to new playlisting tools.

I mean, well, let's just look at what's happening on the stock market elsewhere. Spotify up a percentage point. Now we're understanding here at Bloomberg. But the company will introduce a new higher price premium plan for some of its users later this year. The plan is going to cost at least five dollars more per month, but it's going to include access to high fidelity audio, to new playlisting tools.

If you're an addict, you're gonna want it.

If you're an addict, you're gonna want it.

Apparently from New York, this will been my technology.

Apparently from New York, this will been my technology.

At this stage.

At this stage.

VC firm Day one Ventures has announced it's raised one hundred and fifty million dollars for its latest fun Fun three joining us now Masha Buche, founder general partner at Day one Ventures, and it is the biggest haul of money thus far and some interesting LPs talk to us about how you brought them together.