From Mahard that we're innovation, money and power. Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hide and Ed Lovelove.

From Mahard that we're innovation, money and power. Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hide and Ed Lovelove.

A Meed Lovelow in San Francisco. Caroline hides off. This is Bloomberg Technology coming up in video snaps. It's three day route that wiped four hundred and thirty billion dollars off its market cap. Full analysis ahead, plus Oracle warning of a financial impact to its business should TikTok be banned in the US? Details to come and we go live to our Bloomberg invest Summit, uniting leaders in asset management, banking, wealth and private markets.

A Meed Lovelow in San Francisco. Caroline hides off. This is Bloomberg Technology coming up in video snaps. It's three day route that wiped four hundred and thirty billion dollars off its market cap. Full analysis ahead, plus Oracle warning of a financial impact to its business should TikTok be banned in the US? Details to come and we go live to our Bloomberg invest Summit, uniting leaders in asset management, banking, wealth and private markets.

Some key conversations to come.

Some key conversations to come.

Let's get to financial markets for the only thing that everyone is talking about is in video. We have rebounded up aroun three percent in the Tuesday session, but it follows three straight days of declines which total more than ten percent, so therefore a technical correction and also four hundred and thirty billion dollars of market cap shed. There's a lot of conversation narrative around valuation but also the predictability of sales. How much money in video is going to make? It's been really difficult, whether you're a sell side analyst or even management to correctly say how much revenue is going to come in, particularly with new generations of AI accelerator coming online. So from a market cap perspective, this is what we're supposed to look at in Video down that's the same chart market cap. The point is it's below Apple, it's below Microsoft. So in that time period, in Video has gone from being the most valuable company in the world down a few pegs. Jomping me into my Bloomberg terminal and look.

Let's get to financial markets for the only thing that everyone is talking about is in video. We have rebounded up aroun three percent in the Tuesday session, but it follows three straight days of declines which total more than ten percent, so therefore a technical correction and also four hundred and thirty billion dollars of market cap shed. There's a lot of conversation narrative around valuation but also the predictability of sales. How much money in video is going to make? It's been really difficult, whether you're a sell side analyst or even management to correctly say how much revenue is going to come in, particularly with new generations of AI accelerator coming online. So from a market cap perspective, this is what we're supposed to look at in Video down that's the same chart market cap. The point is it's below Apple, it's below Microsoft. So in that time period, in Video has gone from being the most valuable company in the world down a few pegs. Jomping me into my Bloomberg terminal and look.

At this chart.

At this chart.

Because of all the anxiety around the selloff, there is also some I guess sanguine thinking. From a technical perspective, it's a stock that continues to trade pretty handsomely above it's fifty and one hundred day moving average. We're trading at one hundred and twenty two dollars a share, and people see one hundred and fifteen dollars a share for those of you who follow the technicals as a key level of resistance. Back from a short break, and I'm delighted to be reunited on set with Bloomberg's Ian King. I want to go back to that idea of how difficult it is to forecast sales because over the weekend, that's what we're all talking about. In part, it's because since this all kicked off in twenty twenty three, every time they book revenue, it always comes in pretty handsomely above the midpoint of the guidance that Jensen gives, and it's difficult for the cell size to say, well, what happens next?

Because of all the anxiety around the selloff, there is also some I guess sanguine thinking. From a technical perspective, it's a stock that continues to trade pretty handsomely above it's fifty and one hundred day moving average. We're trading at one hundred and twenty two dollars a share, and people see one hundred and fifteen dollars a share for those of you who follow the technicals as a key level of resistance. Back from a short break, and I'm delighted to be reunited on set with Bloomberg's Ian King. I want to go back to that idea of how difficult it is to forecast sales because over the weekend, that's what we're all talking about. In part, it's because since this all kicked off in twenty twenty three, every time they book revenue, it always comes in pretty handsomely above the midpoint of the guidance that Jensen gives, and it's difficult for the cell size to say, well, what happens next?

Yeah, no, you're absolutely right.

Yeah, no, you're absolutely right.

They are effectively over shooting expectations at every point, and there are a number of factors that play into that, including supply, including this kind of lumpiness of demand because they only have really a small number of large customers.

They are effectively over shooting expectations at every point, and there are a number of factors that play into that, including supply, including this kind of lumpiness of demand because they only have really a small number of large customers.

So all of those things make it very difficult. But at a certain point, you know, things will even out.

So all of those things make it very difficult. But at a certain point, you know, things will even out.

Supply will catch with demand, these big customers will decide they've got enough infrastructure for the time being, and then the story changes. Then other factors come in, and it's when do we reach that transition point?

Supply will catch with demand, these big customers will decide they've got enough infrastructure for the time being, and then the story changes. Then other factors come in, and it's when do we reach that transition point?

As you heard Ian over in New York City Bloomberg Investor, it's underway. Some big names have been attendance and what is it do you think they've been talking about?

As you heard Ian over in New York City Bloomberg Investor, it's underway. Some big names have been attendance and what is it do you think they've been talking about?

It's in Vidia. Listen to this real quick.

It's in Vidia. Listen to this real quick.

I mean, if you look at the chart on in video, you can barely see the correction, so I mean, you know, on a percentage basis, it's down something like ten percent, but you have to like peer really really carefully at the chart to see that move. So I don't think it means anything the people were on that stock, nor what's expensive. But they're buying into a story, and as long as the story is intact, like in video is obviously intact, the story is going to continue.

I mean, if you look at the chart on in video, you can barely see the correction, so I mean, you know, on a percentage basis, it's down something like ten percent, but you have to like peer really really carefully at the chart to see that move. So I don't think it means anything the people were on that stock, nor what's expensive. But they're buying into a story, and as long as the story is intact, like in video is obviously intact, the story is going to continue.

Steve Wiseman of The Big Short Fame on Bloomberg's Avliance earlier today.

Steve Wiseman of The Big Short Fame on Bloomberg's Avliance earlier today.

He talked about the story.

He talked about the story.

The thing that I think investors are finding difficult is the story of new products coming online. So H two hundred is the kind of middle ground generation AI accelerator that's ramping right now. But Jensen told us May twenty second at earnings that Blackwell, which is the next generation accelerator, will also ship this year, and so working out where they're going and how much money they'll make from them is really tough.

The thing that I think investors are finding difficult is the story of new products coming online. So H two hundred is the kind of middle ground generation AI accelerator that's ramping right now. But Jensen told us May twenty second at earnings that Blackwell, which is the next generation accelerator, will also ship this year, and so working out where they're going and how much money they'll make from them is really tough.

It is, I mean, but that's really something that the guys who run the.

It is, I mean, but that's really something that the guys who run the.

Xpl you should be doing a good job with.

Xpl you should be doing a good job with.

What I think is more difficult, and what causes more concern is all of this infrastructure that's being put into place, is it paying off, is it making money or is it just being basically thrown at the wall to see what will stick. And I think that's where if there is a fundamental concern, we want to see AI translate into real revenue and real profit at some of these guys who are paying all of this money for all of this in video.

What I think is more difficult, and what causes more concern is all of this infrastructure that's being put into place, is it paying off, is it making money or is it just being basically thrown at the wall to see what will stick. And I think that's where if there is a fundamental concern, we want to see AI translate into real revenue and real profit at some of these guys who are paying all of this money for all of this in video.

Gear bloom Bezi and King who leads us and making ducts a coverage at Bloomberg but for quite a long time. Also like let our stocks team, we will continue talking about in video. Bloomberg invest is now underway in the heart of New York's financial district, where leaders in asset managed and banking well from private markets are connecting with world class journalists led by Bloomboa's Global Finance correspondent Shnali Bassek to track the future's greatest risks and opportunities now. Moments ago, Felipe Lafont of COTU was asked by David Rubinstein, who would be the winner in AI, existing big tech companies or smaller startups listen to.

Gear bloom Bezi and King who leads us and making ducts a coverage at Bloomberg but for quite a long time. Also like let our stocks team, we will continue talking about in video. Bloomberg invest is now underway in the heart of New York's financial district, where leaders in asset managed and banking well from private markets are connecting with world class journalists led by Bloomboa's Global Finance correspondent Shnali Bassek to track the future's greatest risks and opportunities now. Moments ago, Felipe Lafont of COTU was asked by David Rubinstein, who would be the winner in AI, existing big tech companies or smaller startups listen to.

This at the beginning of these new waves, the new winners ten or twenty years out. Some of them are existing companies and some of them are new. But the new ones that get big, there's maybe one a year. No more.

This at the beginning of these new waves, the new winners ten or twenty years out. Some of them are existing companies and some of them are new. But the new ones that get big, there's maybe one a year. No more.

Delighted to say, as if by magic Bloomberg Shnale Bassek joins us now with more.

Delighted to say, as if by magic Bloomberg Shnale Bassek joins us now with more.

This is a really big event.

This is a really big event.

And it's not surprising that whether you are in the private equity or private growth equity area of the market, or you're a hedge fund or whatever it is you are, everyone seems to be talking about artificial intelligence.

And it's not surprising that whether you are in the private equity or private growth equity area of the market, or you're a hedge fund or whatever it is you are, everyone seems to be talking about artificial intelligence.

It certainly does pervade a lot of the conversations we're having here today. And of course Felipe Leafont is one of the perfect people to talk about artificial intelligence too. Earlier, as he was talking to David Rubinstein, David Rubinstein did ask him if he thinks there's a lot.

It certainly does pervade a lot of the conversations we're having here today. And of course Felipe Leafont is one of the perfect people to talk about artificial intelligence too. Earlier, as he was talking to David Rubinstein, David Rubinstein did ask him if he thinks there's a lot.

Of hype around AI.

Of hype around AI.

And he really leaned into the opportunities that are happening in AI and really downplayed other types of opportunities, say quantum computing, for example. So what is he seeing in the AI opportunity? Some things got really wonky here, this idea of artificial brains being implanted in a robot that lives alongside humans, though that is probably about fifteen years away. According to Kotoo's Lafonte, he's also seeing a lot of opportunity here in power. That is something that a lot of Wall Street is also watching, the banks the hedge funds as well, and so certainly a more near term opportunity a little earlier. Also on the AI front, I would just say we also talked to Bollie of Eldridge Industries and he talked about how it's changing media and entertainment. The reason I bring this all up is because you hear different types of investors ed really talking about the AI opportunity, particularly in private markets as opposed to public markets, and the growth opportunity you're seeing there, as well as the governance structures that exist around companies like that that would allow for that kind of experimentation.

And he really leaned into the opportunities that are happening in AI and really downplayed other types of opportunities, say quantum computing, for example. So what is he seeing in the AI opportunity? Some things got really wonky here, this idea of artificial brains being implanted in a robot that lives alongside humans, though that is probably about fifteen years away. According to Kotoo's Lafonte, he's also seeing a lot of opportunity here in power. That is something that a lot of Wall Street is also watching, the banks the hedge funds as well, and so certainly a more near term opportunity a little earlier. Also on the AI front, I would just say we also talked to Bollie of Eldridge Industries and he talked about how it's changing media and entertainment. The reason I bring this all up is because you hear different types of investors ed really talking about the AI opportunity, particularly in private markets as opposed to public markets, and the growth opportunity you're seeing there, as well as the governance structures that exist around companies like that that would allow for that kind of experimentation.

As regular views of this show, No, I'm a longstanding Chelsea season ticket holder, a member of Chelsea Football Club, so I go watch the top early interview in full online.

As regular views of this show, No, I'm a longstanding Chelsea season ticket holder, a member of Chelsea Football Club, so I go watch the top early interview in full online.

What's to come?

What's to come?

You've put so much.

You've put so much.

Work into Aditionale along with our colleagues from the Live Events team. There are some big names to come in the next few hours.

Work into Aditionale along with our colleagues from the Live Events team. There are some big names to come in the next few hours.

There certainly are shortly, we'll be talking to boaz Y and Stein of SABA Capital, And I've got to say one reason that's interesting, Ed is because we are just in the center of his dispute with Blackrock. We know that there are a couple of funds that he's targeting as activists and closed end funds run by black Rock. They have proxy voting that's going on in the last couple of weeks. In the next couple of weeks, so we don't really know yet if Saba is winning. We'll find out a little more what he thinks on stage in the afternoon. We're going to have a couple of private credit conversations as well, John Zido, I'm looking forward to Gary Gensler, the chairman.

There certainly are shortly, we'll be talking to boaz Y and Stein of SABA Capital, And I've got to say one reason that's interesting, Ed is because we are just in the center of his dispute with Blackrock. We know that there are a couple of funds that he's targeting as activists and closed end funds run by black Rock. They have proxy voting that's going on in the last couple of weeks. In the next couple of weeks, so we don't really know yet if Saba is winning. We'll find out a little more what he thinks on stage in the afternoon. We're going to have a couple of private credit conversations as well, John Zido, I'm looking forward to Gary Gensler, the chairman.

Of the SEC. Of course, with Ann Marie Hordern.

Of the SEC. Of course, with Ann Marie Hordern.

We know the presidential debate is just days away, and hearing what Gensler has to say about what a change of the administration could mean if there is a change in administration for the policies that he's set forth today. Of course, a lot of people in tech and in general markets looking at the potential for an etheream ETF. There's some real potential for news later this afternoon.

We know the presidential debate is just days away, and hearing what Gensler has to say about what a change of the administration could mean if there is a change in administration for the policies that he's set forth today. Of course, a lot of people in tech and in general markets looking at the potential for an etheream ETF. There's some real potential for news later this afternoon.

Bluemokes Shinali Bassic. Just an incredible lineup. Stay tuned. The Bloomberg invest Summit is taking place all of today and tomorrow right there in New York City. Don't forget to tune in, check it out.

Bluemokes Shinali Bassic. Just an incredible lineup. Stay tuned. The Bloomberg invest Summit is taking place all of today and tomorrow right there in New York City. Don't forget to tune in, check it out.

We'll be right back. This has been bug technology.

We'll be right back. This has been bug technology.

China's President's using ping is urging the nation to step up innovation because other countries dominate certain key technologies.

China's President's using ping is urging the nation to step up innovation because other countries dominate certain key technologies.

While he said.

While he said.

China had quote made great progress in science, he added that original innovation ability is still relatively weak. Some key core technologies are controlled by others, and there is a shortage of top scientific and technological talents sticking with China. After initial reporting in May from Bloomberg that Huawei was secretly sponsoring a research competition run by Optica, a review of internal Optica corporate records shows the alliance ran far deeper than publicly known, blossoming over decades even as US China tensions over technology intensified. Let's bring in Bloomberg's Mike Chef, who leads our coverage at the intersection of politics and technology. You know, the original Bloomberg report in May was astonishing, frankly, and the further details in this sort of a polisical environment, and the headlines of the last twelve months are almost unbelievable.

China had quote made great progress in science, he added that original innovation ability is still relatively weak. Some key core technologies are controlled by others, and there is a shortage of top scientific and technological talents sticking with China. After initial reporting in May from Bloomberg that Huawei was secretly sponsoring a research competition run by Optica, a review of internal Optica corporate records shows the alliance ran far deeper than publicly known, blossoming over decades even as US China tensions over technology intensified. Let's bring in Bloomberg's Mike Chef, who leads our coverage at the intersection of politics and technology. You know, the original Bloomberg report in May was astonishing, frankly, and the further details in this sort of a polisical environment, and the headlines of the last twelve months are almost unbelievable.

What have we learned?

What have we learned?

Well?

Well?

At first, let me commend you on the segue into this segment, because it really highlights the importance of this story. It shows that China is really on the quest. It's on the hunt for the technological advances. It needs to bolster its economy and gain that technological edge and key areas, and this shows one way it's been doing it. Huawei, which is such an industrial champion in China, was not only sponsoring secretly this competition, but it was forging a much deeper relationship with Optica, and it was a two way street. Optica is a century old organization that whose members twenty four thousand members worldwide do research and sensitive areas in light that apply to things like semiconductors that are essential to everything in the modern economy. So the consequences of this are significant. And Keith O'Keefe, whose initial report really broke the ground on this and her latest reporting advanced the story further. She found that there was a whistleblower who flagged the risks that some of the work being done by US scientists could be exported to China as a result of this.

At first, let me commend you on the segue into this segment, because it really highlights the importance of this story. It shows that China is really on the quest. It's on the hunt for the technological advances. It needs to bolster its economy and gain that technological edge and key areas, and this shows one way it's been doing it. Huawei, which is such an industrial champion in China, was not only sponsoring secretly this competition, but it was forging a much deeper relationship with Optica, and it was a two way street. Optica is a century old organization that whose members twenty four thousand members worldwide do research and sensitive areas in light that apply to things like semiconductors that are essential to everything in the modern economy. So the consequences of this are significant. And Keith O'Keefe, whose initial report really broke the ground on this and her latest reporting advanced the story further. She found that there was a whistleblower who flagged the risks that some of the work being done by US scientists could be exported to China as a result of this.

I don't want to simplify it too much, but the basic idea is that that money came from Huawei. And in response to this reporting by Kato o'keef, who's had a great impacts ince joining Bloomberg, Obtica's spokesperson basically says that that group Obtica's confident that they acted properly and in good faith. Were showing the response of Liz Rogan, who's the OCTICA CEO on the screen, Mic, I.

I don't want to simplify it too much, but the basic idea is that that money came from Huawei. And in response to this reporting by Kato o'keef, who's had a great impacts ince joining Bloomberg, Obtica's spokesperson basically says that that group Obtica's confident that they acted properly and in good faith. Were showing the response of Liz Rogan, who's the OCTICA CEO on the screen, Mic, I.

Guess what happens next.

Guess what happens next.

You know, when stories like this develop, sometimes law makers take notice, sometimes regulators take notice.

You know, when stories like this develop, sometimes law makers take notice, sometimes regulators take notice.

Well, lawmakers have taken notice, and the top Republican and Democrat on how Science Committee are looking into this. They expressed grave concern that US scientific research could be exposed or even exported unwittingly to China as a result of a relationship like this. Now the organization is saying that it acted in good faith and to be fair, it did not violate any rules per se in allowing this fund this competition to be funded anonymously, and yet the appearance was complicated for one, for the organization, but it was also a risk for the scientists who accepted the money without knowing that it came from Huawei. You see, many researchers in the US have to disclose to other government and university funding agencies where their other sources of money are coming from. And if they don't tell those other funders, if they don't disclose it, hey, some money from Wawei by the way, there could create a problem for them down the road as well.

Well, lawmakers have taken notice, and the top Republican and Democrat on how Science Committee are looking into this. They expressed grave concern that US scientific research could be exposed or even exported unwittingly to China as a result of a relationship like this. Now the organization is saying that it acted in good faith and to be fair, it did not violate any rules per se in allowing this fund this competition to be funded anonymously, and yet the appearance was complicated for one, for the organization, but it was also a risk for the scientists who accepted the money without knowing that it came from Huawei. You see, many researchers in the US have to disclose to other government and university funding agencies where their other sources of money are coming from. And if they don't tell those other funders, if they don't disclose it, hey, some money from Wawei by the way, there could create a problem for them down the road as well.

Blnberg's Mike Shephard, really appreciate your insight and reporting here on Boombog Technology.

Blnberg's Mike Shephard, really appreciate your insight and reporting here on Boombog Technology.

Thank you.

Thank you.

We continue to talk about China. China based Byte Dance is facing a ban in the US in the form of TikTok, and Oracle is now warning that that would adversely affect its revenues and profits. This is a story that caught my eye pretty late yesterday. I want to bring in Bloomberg Intelligence and this Satura Irana and you've basically constantly crunched the numbers on what the impact would be. But it's not straightforward, you know, for our audience's benefit.

We continue to talk about China. China based Byte Dance is facing a ban in the US in the form of TikTok, and Oracle is now warning that that would adversely affect its revenues and profits. This is a story that caught my eye pretty late yesterday. I want to bring in Bloomberg Intelligence and this Satura Irana and you've basically constantly crunched the numbers on what the impact would be. But it's not straightforward, you know, for our audience's benefit.

Oracle was at the heart of TikTok's.

Oracle was at the heart of TikTok's.

Compromise by on shoring US user data in Oracle servers. Basically, Now, if that's banned, what's the point of the Oracle relationship.

Compromise by on shoring US user data in Oracle servers. Basically, Now, if that's banned, what's the point of the Oracle relationship.

Yeah, it's hosting the IQ application. So their infrastructure has been used to do host that, so which is why if it goes they're not going to be getting that much revenue out Now they've never disclosed what the exact revenue amount is. But you know, I think one thing that's happening good on the article side is there's a massive demand for their infrastructure as a service business. They are, you know, helping out Microsoft there, They're helping out or to Google and the I mean, they just really deal with them. So that business is growing over forty percent. It's running at a rundrate of about two billion a quarter right now, so annualized rundrate of about eight billion. So I mean, you know, it will be a setback I would say for a quarter or two, but they can make up that sales with other demand that's out there.

Yeah, it's hosting the IQ application. So their infrastructure has been used to do host that, so which is why if it goes they're not going to be getting that much revenue out Now they've never disclosed what the exact revenue amount is. But you know, I think one thing that's happening good on the article side is there's a massive demand for their infrastructure as a service business. They are, you know, helping out Microsoft there, They're helping out or to Google and the I mean, they just really deal with them. So that business is growing over forty percent. It's running at a rundrate of about two billion a quarter right now, so annualized rundrate of about eight billion. So I mean, you know, it will be a setback I would say for a quarter or two, but they can make up that sales with other demand that's out there.

Stucks down a percentage point in the session in the moment, up more than thirty percent year today. But what you said is interesting, Right, we don't have a number, we don't know what the value of the relationship is, but You've covered this industry long enough, right you know that if a company issues a statement saying this is substantive material is the word, then it's worth looking into.

Stucks down a percentage point in the session in the moment, up more than thirty percent year today. But what you said is interesting, Right, we don't have a number, we don't know what the value of the relationship is, but You've covered this industry long enough, right you know that if a company issues a statement saying this is substantive material is the word, then it's worth looking into.

No, no fair amount.

No, no fair amount.

I completely agree with you, But what I'm trying to say is the demand for these kinds of work is so strong right now. So maybe it's a setback for Oracle for six months or nine months, but they will make up that revenue from other sources. It's not as if it's lost forever that particular revenue stream, you know. In the in the defense of Oracle, right now, they are really becoming the fourth largest cloud provider out there, you know, right behind Amazon, Microsoft and Google Cloud Platform, because this kind of work is really the biggest thing in demand right now. Application software is struggling, but infrastructure software is doing well because of cloud resources.

I completely agree with you, But what I'm trying to say is the demand for these kinds of work is so strong right now. So maybe it's a setback for Oracle for six months or nine months, but they will make up that revenue from other sources. It's not as if it's lost forever that particular revenue stream, you know. In the in the defense of Oracle, right now, they are really becoming the fourth largest cloud provider out there, you know, right behind Amazon, Microsoft and Google Cloud Platform, because this kind of work is really the biggest thing in demand right now. Application software is struggling, but infrastructure software is doing well because of cloud resources.

And that was the focus of the research out this morning from you and Blue mg Intelligence, narrowing the gap when it comes to cloud Ana rag Rana, Bloomberg Intelligence, Thank you so much.

And that was the focus of the research out this morning from you and Blue mg Intelligence, narrowing the gap when it comes to cloud Ana rag Rana, Bloomberg Intelligence, Thank you so much.

Okay.

Okay.

Staying with China, It's spacecraft carrying samples collected on the far side of the Moon return to Earth today, marking an important milestone in China's path for further lunar exploration.

Staying with China, It's spacecraft carrying samples collected on the far side of the Moon return to Earth today, marking an important milestone in China's path for further lunar exploration.

The change is six space landed.

The change is six space landed.

In a grasslands region of Inner Mongolia, and was the second mission by China to the more distant part of the Moon, following the twenty nineteen landing by Chang E four. No other country has sent a spacecraft to the far side, although NASA has plans to support missions there by a US spacecraft. Okay, it's signed for Talking Tech and first up. In yesterday's show, we discussed Wall Street Journal report that Meta and Apple had held talks on an AI partnership. After the show, Bloomberg's Mark German reported or clarified the real situation. Apple dismissed Meta's AI chatbot months ago. According to sources, the iPhone maker held brief discussions about using Meta's Lama chatbot, but ultimately decided not to move forward, citing privacy practices that weren't stringent enough. Plus Open ai issues are warning to China. According to local media reports, open ai says it will begin blocking access to tools and software in the region beginning in July.

In a grasslands region of Inner Mongolia, and was the second mission by China to the more distant part of the Moon, following the twenty nineteen landing by Chang E four. No other country has sent a spacecraft to the far side, although NASA has plans to support missions there by a US spacecraft. Okay, it's signed for Talking Tech and first up. In yesterday's show, we discussed Wall Street Journal report that Meta and Apple had held talks on an AI partnership. After the show, Bloomberg's Mark German reported or clarified the real situation. Apple dismissed Meta's AI chatbot months ago. According to sources, the iPhone maker held brief discussions about using Meta's Lama chatbot, but ultimately decided not to move forward, citing privacy practices that weren't stringent enough. Plus Open ai issues are warning to China. According to local media reports, open ai says it will begin blocking access to tools and software in the region beginning in July.

It's unclear what prompted.

It's unclear what prompted.

The move, and while open ai is unofficially available in the country, many can access its features through VPN and US defense startup Anderil has secured one point five billion dollars of new capital, boosting its valuation to about fourteen billion dollars. That's according to a report by The Information. The startup, backed by Peter Teel, makes drones and autonomous weapons systems, and recently one a major contract to develop unmanned fighter jets for the US Air Force. Another story retracking, the health platform Function reached fifty three million dollars in its Series A funding round. The platform focuses on preventative approaches to help individuals manage their well being. Delighted to say that Function's co founder Mark Heyman joins us. Now you know it's a significant summer money. Congratulations Mark on the Series A. But actually, what caught my eye in the first instance is how many users you've onboarded. Yeah, and how big the weight list is relative to those on board.

The move, and while open ai is unofficially available in the country, many can access its features through VPN and US defense startup Anderil has secured one point five billion dollars of new capital, boosting its valuation to about fourteen billion dollars. That's according to a report by The Information. The startup, backed by Peter Teel, makes drones and autonomous weapons systems, and recently one a major contract to develop unmanned fighter jets for the US Air Force. Another story retracking, the health platform Function reached fifty three million dollars in its Series A funding round. The platform focuses on preventative approaches to help individuals manage their well being. Delighted to say that Function's co founder Mark Heyman joins us. Now you know it's a significant summer money. Congratulations Mark on the Series A. But actually, what caught my eye in the first instance is how many users you've onboarded. Yeah, and how big the weight list is relative to those on board.

It just explain that to me.

It just explain that to me.

Yeah, Well, thank you for having me.

Yeah, Well, thank you for having me.

This is an incredible moment in medical history because we're seeing consumer driven healthcare exploding and we hit a nerve, a pain point where people want access to their own data, their own biology. They want to look under the hood and not just rely on the healthcare system to provide access to their own health information. And so we've gotten fifty thousand people as members in the first year in our data and two hundred thousand people on the waitlist, and there's just a hunger for people to know about their health, to be empowered with the tools and have their own agency over their health, using their data from their own body and having ownership of it, which right now is sort of held within the healthcare system in a very tight way that's hard to access for people, hard to understand, and we make it easy accessible, and it's the first personalized health platform that allows you to access to your own health data through initial one hundred and ten and bound markers for four hundred and ninety nine dollars. It's about fifteen thousand dollars worth. Lab tests and provides deep insights from world scientific literature from top knowledge experts, and provides guidance on what likely things that are going on with you and what to do about them in order to empower you to change your behaviors and your lifestyle, which is really where more of these right is.

This is an incredible moment in medical history because we're seeing consumer driven healthcare exploding and we hit a nerve, a pain point where people want access to their own data, their own biology. They want to look under the hood and not just rely on the healthcare system to provide access to their own health information. And so we've gotten fifty thousand people as members in the first year in our data and two hundred thousand people on the waitlist, and there's just a hunger for people to know about their health, to be empowered with the tools and have their own agency over their health, using their data from their own body and having ownership of it, which right now is sort of held within the healthcare system in a very tight way that's hard to access for people, hard to understand, and we make it easy accessible, and it's the first personalized health platform that allows you to access to your own health data through initial one hundred and ten and bound markers for four hundred and ninety nine dollars. It's about fifteen thousand dollars worth. Lab tests and provides deep insights from world scientific literature from top knowledge experts, and provides guidance on what likely things that are going on with you and what to do about them in order to empower you to change your behaviors and your lifestyle, which is really where more of these right is.

Mark just explain the basics of the technology you know, every time we hear about a data driven platform like this, we immediately start talking about our official intelligence. But I think in this case function has problem that the expression a more simple function just to explain the basics.

Mark just explain the basics of the technology you know, every time we hear about a data driven platform like this, we immediately start talking about our official intelligence. But I think in this case function has problem that the expression a more simple function just to explain the basics.

Absolutely, no, you know, it's hard to believe, but medicine is still in the dark ages. It's very analog. We don't have pen and paper. We have electronic medical records, but essentially pen and paper put in a PDF for electronic medical record with no relational content, with no understanding of the interactions between the data points, with no correlation. And so it's really a unique moment in history where we can gather your own data from the blood from eventually biom bios sensors and wearables, from your electronic records from oh mix and into your own health platform allows you to understand what's going on with your body. So it's a very simple process to sign up. It's five minutes. You go to functionhealth dot com. You can sign up and you get a scheduled appointment for your lab test at one of the two thousand Quest laboratories. Your blood's drawn.

Absolutely, no, you know, it's hard to believe, but medicine is still in the dark ages. It's very analog. We don't have pen and paper. We have electronic medical records, but essentially pen and paper put in a PDF for electronic medical record with no relational content, with no understanding of the interactions between the data points, with no correlation. And so it's really a unique moment in history where we can gather your own data from the blood from eventually biom bios sensors and wearables, from your electronic records from oh mix and into your own health platform allows you to understand what's going on with your body. So it's a very simple process to sign up. It's five minutes. You go to functionhealth dot com. You can sign up and you get a scheduled appointment for your lab test at one of the two thousand Quest laboratories. Your blood's drawn.

It takes about fifteen minutes.

It takes about fifteen minutes.

It's frictionless, you don't have to go through insurance, your doctor gets away from the patronalistic healthcare system. It allows people to be agents of their own health and the seeo your own health, which I think is what we all need to be given the epidemic of chronic disease that's now based.

It's frictionless, you don't have to go through insurance, your doctor gets away from the patronalistic healthcare system. It allows people to be agents of their own health and the seeo your own health, which I think is what we all need to be given the epidemic of chronic disease that's now based.

Okay, just want to jump in on that insurance point. As you can tell you, I come from the United Kingdom, where your healthcaret is very different. Six years in, I'm used to the insurance basis here. How does your business model work within the confines of that system.

Okay, just want to jump in on that insurance point. As you can tell you, I come from the United Kingdom, where your healthcaret is very different. Six years in, I'm used to the insurance basis here. How does your business model work within the confines of that system.

Well, it's very interesting because people are going outside the system to actually learn more about their health, to get data about their health, whether it's home testing or whether it's wearables. Now this is successible to your blood test and you don't have to go through insurance. It's four hundred nine nine dollars a year. It's a dollar thirty seven cents a day, which is less than your dunkin Donuts a cup of coffee, and it allows you to have deep insights about your health across the spectrum of your health, from nutritions to hormone to metabolic health, to toxins to cardiovascer risk to all your biomarkers that relate to your overall well being and something that was never accessible to people before.

Well, it's very interesting because people are going outside the system to actually learn more about their health, to get data about their health, whether it's home testing or whether it's wearables. Now this is successible to your blood test and you don't have to go through insurance. It's four hundred nine nine dollars a year. It's a dollar thirty seven cents a day, which is less than your dunkin Donuts a cup of coffee, and it allows you to have deep insights about your health across the spectrum of your health, from nutritions to hormone to metabolic health, to toxins to cardiovascer risk to all your biomarkers that relate to your overall well being and something that was never accessible to people before.

And so when you go through your.

And so when you go through your.

Doctor insurance, there's a big resistance, a firewall where they say, no, you don't need these tests, you don't need that test, or they just want these small number of tests. But it's better to look at things early on in the trajectory of disease. And we've seen just by the simple approach, we've saved lives. One man was in his forties, forty four years old did the panel, found out he had prostate cancer, was able to treat it early, get cured, and was able to then live on a healthy life with his young kids as opposed to being at.

Doctor insurance, there's a big resistance, a firewall where they say, no, you don't need these tests, you don't need that test, or they just want these small number of tests. But it's better to look at things early on in the trajectory of disease. And we've seen just by the simple approach, we've saved lives. One man was in his forties, forty four years old did the panel, found out he had prostate cancer, was able to treat it early, get cured, and was able to then live on a healthy life with his young kids as opposed to being at.

Risk for death.

Risk for death.

So I think we are seeing incredible uptake. We're seeing incredible results from the users and incredible stories of lives changed.

So I think we are seeing incredible uptake. We're seeing incredible results from the users and incredible stories of lives changed.

And really this is all about ending sight.

And really this is all about ending sight.

Mak Himan Kai, founder Health, thank you for joining us on the Programer're coming up. We're going to be joined by the CEO of x Scaviniberti on how the startup plans to take on in Vidia.

Mak Himan Kai, founder Health, thank you for joining us on the Programer're coming up. We're going to be joined by the CEO of x Scaviniberti on how the startup plans to take on in Vidia.

That's coming up next, a.

That's coming up next, a.

Quick look at shares of Microsoft the European Commission has issued it a statement of objections alleging that Microsoft's teams an office three sixty five fel flou of the EU's competition rules. The stock up four ten percent. A story we'll dig into this is Bloomberg Technology. Welcome back to Bloomberg Technology at Ludlow in San Francisco. Let's take a quick look at the markets. Broadly speaking, US equities are higher then as that one hundred, up a four percentage point. A big part of that story, of course, is in Vidia now up five percent in this session. Is the rebound from that technical correction three straight days of declines exceeding ten percent until now, and there's no real news flow around in video. This is about some serious gains. It was about a forty three percent jump from May twenty second when in Video reported earnings. And the conversation around how hard it is to predict sales growth because you're jumping from H one hundred to H two hundred. Blackwell will start shipping at the end of the year, and the street is basically saying we can't keep up with a management's forecast. What's going on. I also take a quick look at bitcoin trades twenty four to seven. We focused on it big time in yesterday's show, but we're back nearer to sixty two thousand dollars per token, noting that there have been pretty substantive outflows from a dedicated bitcoin spot. Ets I want to linger on the AI accelerator market for a moment. Etched is a young AI chip company making a big bet on AI. They spent the past two years building soho the world's first specialized AI chip for transformers, or so they claim, and that bet is paying off. The company just nabbed a one hundred and twenty million dollar Series A round led Briy, Primary Venture Partners and Positive some Ventures. Let's bring in Gavin Aberti, one of the company's two co founders and its CEO.

Quick look at shares of Microsoft the European Commission has issued it a statement of objections alleging that Microsoft's teams an office three sixty five fel flou of the EU's competition rules. The stock up four ten percent. A story we'll dig into this is Bloomberg Technology. Welcome back to Bloomberg Technology at Ludlow in San Francisco. Let's take a quick look at the markets. Broadly speaking, US equities are higher then as that one hundred, up a four percentage point. A big part of that story, of course, is in Vidia now up five percent in this session. Is the rebound from that technical correction three straight days of declines exceeding ten percent until now, and there's no real news flow around in video. This is about some serious gains. It was about a forty three percent jump from May twenty second when in Video reported earnings. And the conversation around how hard it is to predict sales growth because you're jumping from H one hundred to H two hundred. Blackwell will start shipping at the end of the year, and the street is basically saying we can't keep up with a management's forecast. What's going on. I also take a quick look at bitcoin trades twenty four to seven. We focused on it big time in yesterday's show, but we're back nearer to sixty two thousand dollars per token, noting that there have been pretty substantive outflows from a dedicated bitcoin spot. Ets I want to linger on the AI accelerator market for a moment. Etched is a young AI chip company making a big bet on AI. They spent the past two years building soho the world's first specialized AI chip for transformers, or so they claim, and that bet is paying off. The company just nabbed a one hundred and twenty million dollar Series A round led Briy, Primary Venture Partners and Positive some Ventures. Let's bring in Gavin Aberti, one of the company's two co founders and its CEO.

Okay, let's go back to basics on this. There were a lot of.

Okay, let's go back to basics on this. There were a lot of.

Big claims in that introduction. Your main point is that the specifically designed chip for the development to transform transformers and models is better than the GPU. But what is it that you're building? What is so well so?

Big claims in that introduction. Your main point is that the specifically designed chip for the development to transform transformers and models is better than the GPU. But what is it that you're building? What is so well so?

Who's a kind of aioship that is only able to do one very specific thing. An accelerator from Nvidio or Google is flexible. It can be programmed to run many different kinds of AI models like convolutional networks, LSTMs or transformers.

Who's a kind of aioship that is only able to do one very specific thing. An accelerator from Nvidio or Google is flexible. It can be programmed to run many different kinds of AI models like convolutional networks, LSTMs or transformers.

Right, our chips are different.

Right, our chips are different.

They are only able to run this one very neurow class of model, which we call transformers. But when running these kinds of models, they are vastly more performant, more than twenty times higher throughput than eight one hundred.

They are only able to run this one very neurow class of model, which we call transformers. But when running these kinds of models, they are vastly more performant, more than twenty times higher throughput than eight one hundred.

So what is it from an intellectual property standpoint or a technology standpoint unique to H that allows for that? What is the secret source behind? So that makes it any different from a performance perspective or a design perspective relative to H one hundred eight two hundred.

So what is it from an intellectual property standpoint or a technology standpoint unique to H that allows for that? What is the secret source behind? So that makes it any different from a performance perspective or a design perspective relative to H one hundred eight two hundred.

Well, we're able to burn the transformer algorithm into the chip we're building, our own silicon and our own servers, and this enables us to get more than twenty times higher throughput in terms of output words per second from models like check GPT or LAMA. But you're also able to get much better latency numbers. If you measure the time to the first token, we can cut that by a factor of twenty as well.

Well, we're able to burn the transformer algorithm into the chip we're building, our own silicon and our own servers, and this enables us to get more than twenty times higher throughput in terms of output words per second from models like check GPT or LAMA. But you're also able to get much better latency numbers. If you measure the time to the first token, we can cut that by a factor of twenty as well.

You told my colleague Piles Vary that you think H can be the world's biggest company. That's quite a claim to make outline the pathway to that For.

You told my colleague Piles Vary that you think H can be the world's biggest company. That's quite a claim to make outline the pathway to that For.

Me, well, we are taking a bet.

Me, well, we are taking a bet.

Unlike every other company in the market, our chips can only run transformers. So if transformers change dramatically or go away, then we'll be in a bad place. But if we're right and transformers keep being the dominant way that AI models work, will be the most performance chip on the market by an order of magnitude.

Unlike every other company in the market, our chips can only run transformers. So if transformers change dramatically or go away, then we'll be in a bad place. But if we're right and transformers keep being the dominant way that AI models work, will be the most performance chip on the market by an order of magnitude.

So let's talk about who your target customer is because transformers, or let's let's use another term, large language model in the natural language context.

So let's talk about who your target customer is because transformers, or let's let's use another term, large language model in the natural language context.

For us a misconception.

For us a misconception.

Actually, we'll fix the misconception.

Actually, we'll fix the misconception.

Transformers used to be for just large language models. Other kinds of models like image generators and video generators used to be what's called units, but that's changed over the past year. It's turned out that transformers work better than other kinds of AI models for generating images and videos too.

Transformers used to be for just large language models. Other kinds of models like image generators and video generators used to be what's called units, but that's changed over the past year. It's turned out that transformers work better than other kinds of AI models for generating images and videos too.

I don't know if you saw Sora.

I don't know if you saw Sora.

From open AIS, but that's a transformer as well, powered by the same underlying kind of models check GPT.

From open AIS, but that's a transformer as well, powered by the same underlying kind of models check GPT.

But the point I'd like to get to it with regards to who your customers or potential customers would be is that some transformers have parameters in the hundreds of billions, SOA may be a good example of that. What's happening now in AI development is more modest ambitions, lots of companies working on models with scale a much lower scale in terms of parameters.

But the point I'd like to get to it with regards to who your customers or potential customers would be is that some transformers have parameters in the hundreds of billions, SOA may be a good example of that. What's happening now in AI development is more modest ambitions, lots of companies working on models with scale a much lower scale in terms of parameters.

Where do you want to go that we.

Where do you want to go that we.

Are selling to the big transformer models.

Are selling to the big transformer models.

We have tens of millions and pre orders from the customers you'd expect, but I expect that we are going to get much much bigger AI models. The way we've gone from GPT two and twenty nineteen to GPT four today is not by inventing new algorithms. The transformer algorithm is almost the same. Instead, we have made the models far bigger or one point five billion parameters like GPT two at one point in.

We have tens of millions and pre orders from the customers you'd expect, but I expect that we are going to get much much bigger AI models. The way we've gone from GPT two and twenty nineteen to GPT four today is not by inventing new algorithms. The transformer algorithm is almost the same. Instead, we have made the models far bigger or one point five billion parameters like GPT two at one point in.

The tens or one hundreds of billions or trillions.

The tens or one hundreds of billions or trillions.

One point trullion for GPT four.

One point trullion for GPT four.

Let me ask you this though one hundred and twenty million dollars series A, it seems like an eye watering sum of money, but we've learned that this is a capital intensive enterprise from an R and D perspective of talent perspective, One thing that was of interest to me and wanting used to come on the show is that your contract manufacturing partner is TSMC, and not only TSMC, but their emerging business group where they basically say, okay, you're just starting out, but we can help you to scale this product.

Let me ask you this though one hundred and twenty million dollars series A, it seems like an eye watering sum of money, but we've learned that this is a capital intensive enterprise from an R and D perspective of talent perspective, One thing that was of interest to me and wanting used to come on the show is that your contract manufacturing partner is TSMC, and not only TSMC, but their emerging business group where they basically say, okay, you're just starting out, but we can help you to scale this product.

What's that experience been like?

What's that experience been like?

TSMC is ay a pleasure to work with working on their foreign nimeter node. One of their state of the art processes, same one that in the video is making their black Well GPS on. They were building a eoretical sized diet, so a very big chip that is a complicated kind of chip to build well.

TSMC is ay a pleasure to work with working on their foreign nimeter node. One of their state of the art processes, same one that in the video is making their black Well GPS on. They were building a eoretical sized diet, so a very big chip that is a complicated kind of chip to build well.

On Blackwell's case, they had to literally split it in two, which that's a.

On Blackwell's case, they had to literally split it in two, which that's a.

Great point that for Blackwell.

Great point that for Blackwell.

Normally, what happens in chips is as you move from generation to generation, you move to a more advanced kind of chip technology. So from the A one hundred to the H one hundred, they moved from seven nimeter to five an animeter.

Normally, what happens in chips is as you move from generation to generation, you move to a more advanced kind of chip technology. So from the A one hundred to the H one hundred, they moved from seven nimeter to five an animeter.

But that's changed.

But that's changed.

They couldn't move to the new technology for the Blackwell chips and as a result they had to put two of them together.

They couldn't move to the new technology for the Blackwell chips and as a result they had to put two of them together.

And if you look at the.

And if you look at the.

Progress of GPUs over the past four or five years, they haven't gotten better, They've just gotten bigger performance per area stayed constant.

Progress of GPUs over the past four or five years, they haven't gotten better, They've just gotten bigger performance per area stayed constant.

Yeah, I mean you are an incredibly confident found a co founder CEO. It's a pleasure to have you on the program, and you're clearly ambitious. The difference between nvideor Inexsynvidior is producing at volume. You have one hundred and twenty million dollars in the bank. Now, what do you need to use that cash?

Yeah, I mean you are an incredibly confident found a co founder CEO. It's a pleasure to have you on the program, and you're clearly ambitious. The difference between nvideor Inexsynvidior is producing at volume. You have one hundred and twenty million dollars in the bank. Now, what do you need to use that cash?

Four?

Four?

And how capital intensive is the process of scaling this product? Even if you have a partner like TSMC, this is a capital intensive business.

And how capital intensive is the process of scaling this product? Even if you have a partner like TSMC, this is a capital intensive business.

A majority of our Series A is going to go into building these products and scaling.

A majority of our Series A is going to go into building these products and scaling.

Up the business. That is where the money goes.

Up the business. That is where the money goes.

And I think the big difference too is again we are very specialized that we are inherently taking a bet on the transformer architecture. A lot of folks in the industry will say that, especially transformers were invented, there could be something else on the horizon that will put us out of business, and we are gambling.

And I think the big difference too is again we are very specialized that we are inherently taking a bet on the transformer architecture. A lot of folks in the industry will say that, especially transformers were invented, there could be something else on the horizon that will put us out of business, and we are gambling.

That's not just very quickly, we just have ten seconds. Have you shown Jensen your product?

That's not just very quickly, we just have ten seconds. Have you shown Jensen your product?

I imagaine Jensen's Road of Us by now.

I imagaine Jensen's Road of Us by now.

Gavin ABERTI co founder and CEO of etched. A lot of fighting talk, a lot of confidence. Thank you for joining us in the program. Okay, back to the story we were discussing, open ai has worn developers in China it will begin blocking their access to its sools and software from July. That's according to local media reports suggesting the chat GPT creators taking a more active stance to bar users from nations where it doesn't offer services. Bloombased, Jackiedavlos leading the AIB joins me at a DC. This is really interesting because it's kind of an old school tech thing that a lot of the access to open ai in China was through VPN, you know, which is what people do to stream things in different places.

Gavin ABERTI co founder and CEO of etched. A lot of fighting talk, a lot of confidence. Thank you for joining us in the program. Okay, back to the story we were discussing, open ai has worn developers in China it will begin blocking their access to its sools and software from July. That's according to local media reports suggesting the chat GPT creators taking a more active stance to bar users from nations where it doesn't offer services. Bloombased, Jackiedavlos leading the AIB joins me at a DC. This is really interesting because it's kind of an old school tech thing that a lot of the access to open ai in China was through VPN, you know, which is what people do to stream things in different places.

But give me more details in this story.

But give me more details in this story.

Well, what we know ed is that Chinese developers will have this access cut off starting in July. As you mentioned, this really originated through local media reporting, which cited screenshots that had this open Ai memo to developers saying they were going to have this access removed. Open Ai has now confirmed the decision to Bloomberg News earlier this morning that it is in fact taking quote additional steps to block API traffic from regions where we do not support access to open AI's services. Now, this is not the first time that China has come against the crosshairs of American tech companies and even regulators here and US officials who believe that China is using this technology for more nefarious purposes. Now open ai really started ratching it up its own actions against who it believes is bad actors and using its technology, perhaps to manipulate public opinion. For example, remember that report in May ed that said Russia, China, Iran and Israel we're using open ai to manipulate public opinion. So you really see these actions really starting to take shape here.

Well, what we know ed is that Chinese developers will have this access cut off starting in July. As you mentioned, this really originated through local media reporting, which cited screenshots that had this open Ai memo to developers saying they were going to have this access removed. Open Ai has now confirmed the decision to Bloomberg News earlier this morning that it is in fact taking quote additional steps to block API traffic from regions where we do not support access to open AI's services. Now, this is not the first time that China has come against the crosshairs of American tech companies and even regulators here and US officials who believe that China is using this technology for more nefarious purposes. Now open ai really started ratching it up its own actions against who it believes is bad actors and using its technology, perhaps to manipulate public opinion. For example, remember that report in May ed that said Russia, China, Iran and Israel we're using open ai to manipulate public opinion. So you really see these actions really starting to take shape here.

There's two sides of the story, right, there's the use of the technology by malicious actors or on authorized actors and also i think a data access point. But there's also a competition side of the story. Right, you have to sick champions in China like bay Do that are building large language models, big large language models to support generative AI technology, give me that side of the story.

There's two sides of the story, right, there's the use of the technology by malicious actors or on authorized actors and also i think a data access point. But there's also a competition side of the story. Right, you have to sick champions in China like bay Do that are building large language models, big large language models to support generative AI technology, give me that side of the story.

Well, they were quick to pounce on the fact that now there's this wide swath of developers who need AI technology to turn to, and so what some of these local reports were saying is that they started appealing to developers and saying, hey, come switch to our tech. Really goes to show that there is this not just this technology battle, but there's a need to really start ramping up its own internal AI capabilities. This is exactly what lawmakers here in Washington need are concerned about that AI is really ramping up their efforts not just to have AI play a role in it's economic capabilities, but military and so of course, this isn't just you know, about what consumers have access to, but how it can be used against kind of national security. And this is exactly where we're seeing here in Washington actions on behalf of for example, the Treasury Department imposing rules to curb investment that would support AI investment in some of these areas, and also, of course, you know curbs on chip exports. We're really starting to see both of these things really come together.

Well, they were quick to pounce on the fact that now there's this wide swath of developers who need AI technology to turn to, and so what some of these local reports were saying is that they started appealing to developers and saying, hey, come switch to our tech. Really goes to show that there is this not just this technology battle, but there's a need to really start ramping up its own internal AI capabilities. This is exactly what lawmakers here in Washington need are concerned about that AI is really ramping up their efforts not just to have AI play a role in it's economic capabilities, but military and so of course, this isn't just you know, about what consumers have access to, but how it can be used against kind of national security. And this is exactly where we're seeing here in Washington actions on behalf of for example, the Treasury Department imposing rules to curb investment that would support AI investment in some of these areas, and also, of course, you know curbs on chip exports. We're really starting to see both of these things really come together.

I think that what they're doing from a technical standpoint, I'm just reiterating what an open ai spokesperson told us is that they are taking additional sets to block API traffic. I still find it astonishing that the origin of this story is people being able to access open AI from China through VPN. Just give me a little bit more on what you just said about the DC side of this.

I think that what they're doing from a technical standpoint, I'm just reiterating what an open ai spokesperson told us is that they are taking additional sets to block API traffic. I still find it astonishing that the origin of this story is people being able to access open AI from China through VPN. Just give me a little bit more on what you just said about the DC side of this.

You know Joe Biden.

You know Joe Biden.

President Biden has some policy towards restricting Chinese products entering the United States or tariffs, and the Treasury.

President Biden has some policy towards restricting Chinese products entering the United States or tariffs, and the Treasury.

Department you mentioned as well.

Department you mentioned as well.

Are we expecting a sort of expansion of that activity.

Are we expecting a sort of expansion of that activity.

That's a key question. I think.

That's a key question. I think.

If there's one area where lawmakers here in Washington have really come together, it's around the national security argument that China has capabilities in artificial intelligence and it will continue to bolster them. Now you saw this with TikTok. Really the concern that Chinese influence was coming through somehow in TikTok and influencing public opinion here through that tech. But then you look at artificial intelligence and what can be done with drones for example, really things on the battlefield. This is where a lot of that concern is coming from. And so of course you're seeing chip manufacturing is kind of the hallmark example for the Biden administration really starting to take the lead here. It's all part of this broader strategy to really undercut Beijing's efforts to have AI kind of bolster its military capabilities.

If there's one area where lawmakers here in Washington have really come together, it's around the national security argument that China has capabilities in artificial intelligence and it will continue to bolster them. Now you saw this with TikTok. Really the concern that Chinese influence was coming through somehow in TikTok and influencing public opinion here through that tech. But then you look at artificial intelligence and what can be done with drones for example, really things on the battlefield. This is where a lot of that concern is coming from. And so of course you're seeing chip manufacturing is kind of the hallmark example for the Biden administration really starting to take the lead here. It's all part of this broader strategy to really undercut Beijing's efforts to have AI kind of bolster its military capabilities.

Bloomba's Jackiedavolos, this is a pretty fast developing story. Grateful for you keeping us honest on it out of Washington, d C. Thank you, Bloombo Technology.

Bloomba's Jackiedavolos, this is a pretty fast developing story. Grateful for you keeping us honest on it out of Washington, d C. Thank you, Bloombo Technology.

The Bay open every day, open

The Bay open every day, open