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From Marhart where Innovation, money and power Collie in Silicon Valley.

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This is Bloomberg Technology with Caroline Hyde and Ed.

This is Bloomberg Technology with Caroline Hyde and Ed.

Ludlow live from San Francisco. This is Bloomberg Technology. Coming up on the show, the latest on ARM and Qualcom after a key tech license deal is canceled, and why some analysts predict a tough road ahead for Tesla ahead of its earnings report. Plus, We're live at B twenty and South Paulo with a conversation with Google Brazil's president, Fabio Coello.

Ludlow live from San Francisco. This is Bloomberg Technology. Coming up on the show, the latest on ARM and Qualcom after a key tech license deal is canceled, and why some analysts predict a tough road ahead for Tesla ahead of its earnings report. Plus, We're live at B twenty and South Paulo with a conversation with Google Brazil's president, Fabio Coello.

Let's get to our top story.

Let's get to our top story.

Shares of chip maker Qualcom and chip design firm ARM are both lower morning, Bloomberg reporting that ARM canceled a license issued to its longtime partner Qualcom, potentially leaving the leader in Android smartphone processes without key intellectual property to design chips. The showdown could hit the finances of both companies and comes ahead of a breach of contract trial in December. That dispute centers around an acquisition Qualcom made of another chip firm that was already licensing ARMED designs, and those blueprints then passing on to Qualcomm. Bloomberg Intelligence senior chip analyst Counjan Sabanni has published his React research with colleagues in response to that licensed cancelation and joins us on set in San Francisco. Let's start with your reaction the news with significant overnight investors do not like it. Clearly the timing is a surprise. What do you make of it?

Shares of chip maker Qualcom and chip design firm ARM are both lower morning, Bloomberg reporting that ARM canceled a license issued to its longtime partner Qualcom, potentially leaving the leader in Android smartphone processes without key intellectual property to design chips. The showdown could hit the finances of both companies and comes ahead of a breach of contract trial in December. That dispute centers around an acquisition Qualcom made of another chip firm that was already licensing ARMED designs, and those blueprints then passing on to Qualcomm. Bloomberg Intelligence senior chip analyst Counjan Sabanni has published his React research with colleagues in response to that licensed cancelation and joins us on set in San Francisco. Let's start with your reaction the news with significant overnight investors do not like it. Clearly the timing is a surprise. What do you make of it?

I mean the timing of the notice for the December sixteen trial, which is almost two months of This doesn't seem like a coincidence to us. This seems as a pressure tactic for arm on Qualcom. But bring this to a settlement before even the trial begins.

I mean the timing of the notice for the December sixteen trial, which is almost two months of This doesn't seem like a coincidence to us. This seems as a pressure tactic for arm on Qualcom. But bring this to a settlement before even the trial begins.

This is a technology story, and historically Quialdcom is used armed designs for its chips until this week when it announced its latest generation processes which relate to that acquisition.

This is a technology story, and historically Quialdcom is used armed designs for its chips until this week when it announced its latest generation processes which relate to that acquisition.

It's a company called Nuvia.

It's a company called Nuvia.

I spoke to the Qualcom CEO, Carsiano Amon yesterday prior to this news coming out.

I spoke to the Qualcom CEO, Carsiano Amon yesterday prior to this news coming out.

You're aware of that.

You're aware of that.

Let's just very quickly listen to what he said about the company's technology strategy.

Let's just very quickly listen to what he said about the company's technology strategy.

So we went from fault took course to the BC's and now industrial and that has been part of a strategy we did all organically. With some of the small acquisitions, we feel we have a very competitive roadmap and we're thinking about the new what is the new innovation that is coming through those markets.

So we went from fault took course to the BC's and now industrial and that has been part of a strategy we did all organically. With some of the small acquisitions, we feel we have a very competitive roadmap and we're thinking about the new what is the new innovation that is coming through those markets.

The acquisition he's referencing there was Nuvia. Just explain the basics of that deal and now why the timing of this piece of news is so significant.

The acquisition he's referencing there was Nuvia. Just explain the basics of that deal and now why the timing of this piece of news is so significant.

So Nuvia designs were based on ARM architecture and they had a license with ARM. When Qualcom acquired Nuvia. ARM issue what that the license was on a much lower rate than what it had with Qualcomm. Now, Qualcom did reiterate and build on top of the Nubia architecture, which they are now calling sort of their own designs. So the issue here is that the license agreement based on which the Orion chips were built on, we're at a much lower rate and ARM is demanding a higher rate comparable to what Qualcom is paying on its ARM based designs.

So Nuvia designs were based on ARM architecture and they had a license with ARM. When Qualcom acquired Nuvia. ARM issue what that the license was on a much lower rate than what it had with Qualcomm. Now, Qualcom did reiterate and build on top of the Nubia architecture, which they are now calling sort of their own designs. So the issue here is that the license agreement based on which the Orion chips were built on, we're at a much lower rate and ARM is demanding a higher rate comparable to what Qualcom is paying on its ARM based designs.

This is a complicated story, and it's complicated for vanists like you covering. This is what Calcom had to say in response to the Bloomberg reporting and its fighting talk. As you'd imagine, this is more of the same from our more unfounded threats designed to strong arm a long time partner, interfere with our performance leading CPUs and increase royalty rates regardless of the broad right under our architectural license.

This is a complicated story, and it's complicated for vanists like you covering. This is what Calcom had to say in response to the Bloomberg reporting and its fighting talk. As you'd imagine, this is more of the same from our more unfounded threats designed to strong arm a long time partner, interfere with our performance leading CPUs and increase royalty rates regardless of the broad right under our architectural license.

They go on to say other things.

They go on to say other things.

I think the main point is we are headed to trial in December on the royalty rates piece.

I think the main point is we are headed to trial in December on the royalty rates piece.

How do you see this playing out?

How do you see this playing out?

Armed does not want to lose money with Qualcom going with different designs, right. Qualcomm is the most important smartphone processor maker when it comes to Android platform.

Armed does not want to lose money with Qualcom going with different designs, right. Qualcomm is the most important smartphone processor maker when it comes to Android platform.

There's quite a lot at stake here.

There's quite a lot at stake here.

Definitely for ARMED Qualcom it's number one customers with about three hundred and twenty million in revenues.

Definitely for ARMED Qualcom it's number one customers with about three hundred and twenty million in revenues.

Last year, so it does.

Last year, so it does.

Not definitely want the number one customer to go away. But we don't think that a litigation where blocking Qualcom's ability to ship chips based on the ARM arguement is more likely because it does not just impact Qualcom, but it impacts the entire industry. I mean imagine a scenario where phonemakers cannot get qual Comb chips in which they are getting ready for the next generation of AI smartphones.

Not definitely want the number one customer to go away. But we don't think that a litigation where blocking Qualcom's ability to ship chips based on the ARM arguement is more likely because it does not just impact Qualcom, but it impacts the entire industry. I mean imagine a scenario where phonemakers cannot get qual Comb chips in which they are getting ready for the next generation of AI smartphones.

I should add the ARM decline to comment on the reporting that was Congensubani of Bloomberg Intelligence the analysis, and later in the show we'll go deeper on that Bloomberg reporting on the story. Let's talk a bit about markets and then the invested attitude.

I should add the ARM decline to comment on the reporting that was Congensubani of Bloomberg Intelligence the analysis, and later in the show we'll go deeper on that Bloomberg reporting on the story. Let's talk a bit about markets and then the invested attitude.

Toward the chip sector.

Toward the chip sector.

Hillary Frisch, senior Research analysts for Software Services and Enterprise Tech at clear Bridge, joins us. And it's so interesting because there's a lot of noise and single name specific noise, but actually those headwinds are offset by massive tailwinds for the chip sector, largely related to the enterprise investment in AI infrastructure.

Hillary Frisch, senior Research analysts for Software Services and Enterprise Tech at clear Bridge, joins us. And it's so interesting because there's a lot of noise and single name specific noise, but actually those headwinds are offset by massive tailwinds for the chip sector, largely related to the enterprise investment in AI infrastructure.

Hillary, Yes, they absolutely are. I agree with you one hundred percent.

Hillary, Yes, they absolutely are. I agree with you one hundred percent.

Where are you focusing? Go ahead, please continue.

Where are you focusing? Go ahead, please continue.

Yeah, we're seeing growing demand indications for demand for cloud migrations, demand for AI, more AI projects going into production. There's a lot of debate around that, but all there's more activity now than there was six months ago. There's more likely to go into production in the first half of the year than second half of this year, So so those RULs are really starting to move.

Yeah, we're seeing growing demand indications for demand for cloud migrations, demand for AI, more AI projects going into production. There's a lot of debate around that, but all there's more activity now than there was six months ago. There's more likely to go into production in the first half of the year than second half of this year, So so those RULs are really starting to move.

Where I would like to talk about qual Con with you, is this debate about how we as consumers will use AI. To Qualcomm's mind, it is on device, of course, it is that's their entire business, right, But they see a world where within five years all of us having an AI smartphone. When you look at the markets and you look at the names across the technology sector, is that a part of your thesis and your investment approach, that idea that we're on device sooner rather than later.

Where I would like to talk about qual Con with you, is this debate about how we as consumers will use AI. To Qualcomm's mind, it is on device, of course, it is that's their entire business, right, But they see a world where within five years all of us having an AI smartphone. When you look at the markets and you look at the names across the technology sector, is that a part of your thesis and your investment approach, that idea that we're on device sooner rather than later.

I think the requirements for efficiency in processing, Jenny, I will require that processing occur everywhere, including on the device. There's clearly going to be a tremendous amount of centralized processing out the hyperscalers themselves at ancillary clouds with larger and smaller models, and there's going to be a diversity within the ecosystem. But absolutely the device is part of the thesis.

I think the requirements for efficiency in processing, Jenny, I will require that processing occur everywhere, including on the device. There's clearly going to be a tremendous amount of centralized processing out the hyperscalers themselves at ancillary clouds with larger and smaller models, and there's going to be a diversity within the ecosystem. But absolutely the device is part of the thesis.

There are interesting parts of the enterprise software space as well, where everyone is sticking the letters A and I in front of existing products.

There are interesting parts of the enterprise software space as well, where everyone is sticking the letters A and I in front of existing products.

Are you finding it.

Are you finding it.

Possible to discern what is tangibly good, new, impressive, and what is just marketing?

Possible to discern what is tangibly good, new, impressive, and what is just marketing?

It's such a good question, ed. There is a tremendous amount of marketing speak, fud hopes, dreams, and promises. But at the end of the day, what is interesting about this cycle versus prior cycles, first and foremost is just how quickly, incumbents have moved to embrace Jenai, to incorporate it into their product lines. Some key incumbents like Microsoft and Salesforce, have pivoted their entire organizations around Jenai. They've re architected their R and D efforts around it, seemingly overnight, let's call it within a year or a little less and even longer for Microsoft. But at the end of the day, there's a trumanous amount of activity the incumbents. Actually, there's a lot of debate over who will win, who will lose. There's a lot of investor focus on the potential disintermediation of incumbents, but they bring a lot to bear this time around, not just the data, not just the workflows, not just the customer trust, not just that whole end of it. But Jenny I, at the end of the day, isn't just about a building a bot or a NAP or an interface. It's about the complexity of the back end and that entire orchestration, the provisioning, the identities and all the things that go along with it, which is very hard to do. So that's the key of part of what I'm looking for. Who can handle the entirety of the complexity of what looks very simple on the front end of say an agent and how they will succeed in that. And we're gauging that process as we grow as we go. But so for all, the early indications are fairly.

It's such a good question, ed. There is a tremendous amount of marketing speak, fud hopes, dreams, and promises. But at the end of the day, what is interesting about this cycle versus prior cycles, first and foremost is just how quickly, incumbents have moved to embrace Jenai, to incorporate it into their product lines. Some key incumbents like Microsoft and Salesforce, have pivoted their entire organizations around Jenai. They've re architected their R and D efforts around it, seemingly overnight, let's call it within a year or a little less and even longer for Microsoft. But at the end of the day, there's a trumanous amount of activity the incumbents. Actually, there's a lot of debate over who will win, who will lose. There's a lot of investor focus on the potential disintermediation of incumbents, but they bring a lot to bear this time around, not just the data, not just the workflows, not just the customer trust, not just that whole end of it. But Jenny I, at the end of the day, isn't just about a building a bot or a NAP or an interface. It's about the complexity of the back end and that entire orchestration, the provisioning, the identities and all the things that go along with it, which is very hard to do. So that's the key of part of what I'm looking for. Who can handle the entirety of the complexity of what looks very simple on the front end of say an agent and how they will succeed in that. And we're gauging that process as we grow as we go. But so for all, the early indications are fairly.

Promising and how they handle it.

Promising and how they handle it.

Let's end the conversation by asking what happens next across the field of software enterprising the hardware names you cover, how primed are we for more M and A and more consolidation.

Let's end the conversation by asking what happens next across the field of software enterprising the hardware names you cover, how primed are we for more M and A and more consolidation.

It looks as.

It looks as.

Though we're primed for more M and A and consolidation going forward. That would have been the natural inclination to start with. We've had a sluggish spending environment, most certainly for a variety of reasons. I think the elections have been.

Though we're primed for more M and A and consolidation going forward. That would have been the natural inclination to start with. We've had a sluggish spending environment, most certainly for a variety of reasons. I think the elections have been.

Part of that.

Part of that.

There are a lot of factors that are part of that, as including a wholesale focus on Jenny I by corporations. But going forward, there's better spending indications. We're going to see both administrative potential. New candidates look likely to permit more in the way of M and A. There's going to be more imperative to do that. You're seeing more private equity activity and you're seeing the low end of valuations called the ibms, the SEPs, the oracles come up providing a floor. So I think all of that and hopefully declining interest rates will precipitate a more active M and a environment going forward.

There are a lot of factors that are part of that, as including a wholesale focus on Jenny I by corporations. But going forward, there's better spending indications. We're going to see both administrative potential. New candidates look likely to permit more in the way of M and A. There's going to be more imperative to do that. You're seeing more private equity activity and you're seeing the low end of valuations called the ibms, the SEPs, the oracles come up providing a floor. So I think all of that and hopefully declining interest rates will precipitate a more active M and a environment going forward.

Hillary Frish, Senior Research analysts for Software Services and Enterprise Technology at Clearbridge, Thank you very much. Apple CEO Tim Cook makes a visit to Beijing, meeting with China's TECHSAR with a promise to keep investing in the country. Bloomberg's chief correspondent for Apple and Consumer Electronics, Mark German with us. Now, and you and I have talked so much about the supply chain in China, and China is an end market, but it is notable that he goes in person and has this very public meeting.

Hillary Frish, Senior Research analysts for Software Services and Enterprise Technology at Clearbridge, Thank you very much. Apple CEO Tim Cook makes a visit to Beijing, meeting with China's TECHSAR with a promise to keep investing in the country. Bloomberg's chief correspondent for Apple and Consumer Electronics, Mark German with us. Now, and you and I have talked so much about the supply chain in China, and China is an end market, but it is notable that he goes in person and has this very public meeting.

What do we know, Mark, Yeah, So around this time every year, UP executives make a track down to Asia. Greg Joswiak right now they're head of marketing is in Southeast Asia. Tim Cook and Jeff Williams Cooking, the CEO of Loans being the COO, are now in mainland China, and Cook typically goes to China two to four per year, other than during the pandemic years he was there quite often. There's a lot at stakes for Apple and China, right, they need to meet with their big providers and partners there. China Mobile, you had a meeting with them, they pledged continued cooperation. Cook pledge continued cooperation with the IT Minister of China. Of course, he's not going to go there, meet with the IT minister and say we're no longer going to cooperate in our second or third biggest market, right, So that's kind of obvious.

What do we know, Mark, Yeah, So around this time every year, UP executives make a track down to Asia. Greg Joswiak right now they're head of marketing is in Southeast Asia. Tim Cook and Jeff Williams Cooking, the CEO of Loans being the COO, are now in mainland China, and Cook typically goes to China two to four per year, other than during the pandemic years he was there quite often. There's a lot at stakes for Apple and China, right, they need to meet with their big providers and partners there. China Mobile, you had a meeting with them, they pledged continued cooperation. Cook pledge continued cooperation with the IT Minister of China. Of course, he's not going to go there, meet with the IT minister and say we're no longer going to cooperate in our second or third biggest market, right, So that's kind of obvious.

So this is just how things go.

So this is just how things go.

When you are a multinational company as big as Apple, you have to meet with your partners and government regulators in the countries that you work with and work in, and these meetings are a big part of that. Obviously, Apple's unique as a US based tech company to have such freedoms in China. They have around forty retail stores there. For the most part, almost all of their services operate there. There are some nuances regarding cloud storage for iCloud. Obviously Apple Intelligence is not available there yet. So these are things they're going to continue to work on and keeping in and meeting with that government is important. Not to mention the necessary meetings that Cook and Williams Obviously Williams runs a supply chain needs to have with fox Conn other supply chain partners locally.

When you are a multinational company as big as Apple, you have to meet with your partners and government regulators in the countries that you work with and work in, and these meetings are a big part of that. Obviously, Apple's unique as a US based tech company to have such freedoms in China. They have around forty retail stores there. For the most part, almost all of their services operate there. There are some nuances regarding cloud storage for iCloud. Obviously Apple Intelligence is not available there yet. So these are things they're going to continue to work on and keeping in and meeting with that government is important. Not to mention the necessary meetings that Cook and Williams Obviously Williams runs a supply chain needs to have with fox Conn other supply chain partners locally.

Mark Apple shares down around a percentage point in the session. There's reports out there this morning that Apple's scaling back production of the Vision Pro.

Mark Apple shares down around a percentage point in the session. There's reports out there this morning that Apple's scaling back production of the Vision Pro.

What do we know about that and what do you make of it?

What do we know about that and what do you make of it?

I think it's a bit of a misnomer, right. It's not that they're scaling back production of the Vision Pro because they're planning on canceling it or getting rid of it. Before Apple releases new versions of products, they need to scale back production of the current product, and the goal is to have enough units to fulfill demand and fill the channels until the new one's already And there is a new version of the Vision Pro coming out in early twenty twenty six. I'm told that's a second generation version with a faster processor and focus on artificial intelligence. At the end of twenty twenty five, they're going to unveil a cheaper model of the Vision Pro, reduce the specifics, try to get the price pointing down by about fifteen hundred to eighteen hundred dollars, and so you need to scale back production ahead of time, so you don't have over inventor and those new models come out now, the new once And the interesting part here is that Apple believes it's going to take a year for them to run out of existing supply of the Vision Pro, which makes sense given that the pace of this thing is selling at But I've seen no indication of any abandonment of the vision Pro line. In fact, what I'm seeing is increased hiring for the Vision Pro. I'm seeing increased investment, and I'm seeing increased optimism about the future of the product now that they're sort of getting a new roadmap together of different types of devices within that family.

I think it's a bit of a misnomer, right. It's not that they're scaling back production of the Vision Pro because they're planning on canceling it or getting rid of it. Before Apple releases new versions of products, they need to scale back production of the current product, and the goal is to have enough units to fulfill demand and fill the channels until the new one's already And there is a new version of the Vision Pro coming out in early twenty twenty six. I'm told that's a second generation version with a faster processor and focus on artificial intelligence. At the end of twenty twenty five, they're going to unveil a cheaper model of the Vision Pro, reduce the specifics, try to get the price pointing down by about fifteen hundred to eighteen hundred dollars, and so you need to scale back production ahead of time, so you don't have over inventor and those new models come out now, the new once And the interesting part here is that Apple believes it's going to take a year for them to run out of existing supply of the Vision Pro, which makes sense given that the pace of this thing is selling at But I've seen no indication of any abandonment of the vision Pro line. In fact, what I'm seeing is increased hiring for the Vision Pro. I'm seeing increased investment, and I'm seeing increased optimism about the future of the product now that they're sort of getting a new roadmap together of different types of devices within that family.

Bloomberg's Mark Gunman and all things Apple, thank you very much, and I think we're tracking. Is Tesla set to report earnings after the closing bell today?

Bloomberg's Mark Gunman and all things Apple, thank you very much, and I think we're tracking. Is Tesla set to report earnings after the closing bell today?

What do we expect.

What do we expect.

Let's go out to Bloomberg's Creature now in London, who leads our global autized coverage And.

Let's go out to Bloomberg's Creature now in London, who leads our global autized coverage And.

This is an important print and an important call. Where do you want to start?

This is an important print and an important call. Where do you want to start?

There is a long list of things that invest in Tesla fans and tests the writin is will want to know about.

There is a long list of things that invest in Tesla fans and tests the writin is will want to know about.

Yeah, I think deliveries wise going in we know that they were up a little bit for the quarter. I think the question is going to be sort of how how they pulled that off right, and to what extent were they able to keep pricing firm. I think the expectation generally is that it is that earnings may actually dip a bit in terms of, you know, because of the fact that this is a company that is still highly, highly reliant on the Model three and Model Why and those products are a bit tired and in need of some upgrades, and we didn't really see the Model Why excuse me, the Model three refresh.

Yeah, I think deliveries wise going in we know that they were up a little bit for the quarter. I think the question is going to be sort of how how they pulled that off right, and to what extent were they able to keep pricing firm. I think the expectation generally is that it is that earnings may actually dip a bit in terms of, you know, because of the fact that this is a company that is still highly, highly reliant on the Model three and Model Why and those products are a bit tired and in need of some upgrades, and we didn't really see the Model Why excuse me, the Model three refresh.

Really sort of moved the needle. You know.

Really sort of moved the needle. You know.

I would be interested in, of course, whether Musk has anything to say about a Model Why refresh. He sort of ruled out that anything is coming before the end of this year, but that I think is something everybody's expecting being a part of these you know, more affordable models that company has teased coming in the first half of twenty twenty five.

I would be interested in, of course, whether Musk has anything to say about a Model Why refresh. He sort of ruled out that anything is coming before the end of this year, but that I think is something everybody's expecting being a part of these you know, more affordable models that company has teased coming in the first half of twenty twenty five.

The timing of the earnings reform call is so interesting because it comes so quickly after we robot the robotaxi event, and it feels like they left a lot out there, or a lot that they didn't put out there right investers wanted to know about a proprietary ride heading app. Do you think Musk is going to talk about that on the call, Craig.

The timing of the earnings reform call is so interesting because it comes so quickly after we robot the robotaxi event, and it feels like they left a lot out there, or a lot that they didn't put out there right investers wanted to know about a proprietary ride heading app. Do you think Musk is going to talk about that on the call, Craig.

I would be surprised, just because it feels to me like, you know, even some of the timelines that Musk put out there at the event were a good ways off, and we know that, you know, as he himself acknowledges, he tends to be overly optimistic about these timelines, and so that still feels like a business that, you know, we're not going to see anytime soon, and so it would maybe be premature to get into on the call. I think another sort of you know topic that I would be surprised if it didn't come up with some discussion of Musk's involvement in politics and yes, you know, the company to its credit, you know, solicit retail investor questions. I would be shocked if we didn't have, you know, something come up along those lines. We've heard Musk address this in the past.

I would be surprised, just because it feels to me like, you know, even some of the timelines that Musk put out there at the event were a good ways off, and we know that, you know, as he himself acknowledges, he tends to be overly optimistic about these timelines, and so that still feels like a business that, you know, we're not going to see anytime soon, and so it would maybe be premature to get into on the call. I think another sort of you know topic that I would be surprised if it didn't come up with some discussion of Musk's involvement in politics and yes, you know, the company to its credit, you know, solicit retail investor questions. I would be shocked if we didn't have, you know, something come up along those lines. We've heard Musk address this in the past.

For now, Tesla is still in the business of selling electric vehicles to consumers. What does the environment and other reports and earnings tell us about how that's going around the world.

For now, Tesla is still in the business of selling electric vehicles to consumers. What does the environment and other reports and earnings tell us about how that's going around the world.

I think so many manufacturers are really pivoting to you know, hybrids, right and plug in hybrids, range extended electric vehicles. I think Tesla you know, sort of went out of its way a couple quarters ago to say to highlight that fact and say it was their belief that this is the wrong strategy. I think you have to sort of, you know, look at at what has happened at some of Tesla's biggest competitors and question whether they were really correct because we've seen much more robust demand for hybrids, whether they plug in or not. You know, Toyota, for instance, is just really kind of lighting the world on fire with its hybrid business. And so you know, Tesla, I think is struggling with some of these broader trends that the industry is seeing have slowed down for a battery electric vehicle demand.

I think so many manufacturers are really pivoting to you know, hybrids, right and plug in hybrids, range extended electric vehicles. I think Tesla you know, sort of went out of its way a couple quarters ago to say to highlight that fact and say it was their belief that this is the wrong strategy. I think you have to sort of, you know, look at at what has happened at some of Tesla's biggest competitors and question whether they were really correct because we've seen much more robust demand for hybrids, whether they plug in or not. You know, Toyota, for instance, is just really kind of lighting the world on fire with its hybrid business. And so you know, Tesla, I think is struggling with some of these broader trends that the industry is seeing have slowed down for a battery electric vehicle demand.

Bloomber's cry true down in London, Thank you so much.

Bloomber's cry true down in London, Thank you so much.

Now coming up on the show, Asana just released its latest AI workflow tools page. Costello, Company's head of AI joins us. Next, this is Bloomberg Technology Enterprise work Management platform as Sana just wrapped its work Innovation Summit where announced new AI features that will do things like project coordination and workforce orchestration teams also be able to embed the new features without using code. Here with Morris Page Costello. She's the head of AI at Asana, and there's such pressure right now to ship new products, almost like on a weekly cadence. It was a big week for you. They start with the without code bit. Why is that significant?

Now coming up on the show, Asana just released its latest AI workflow tools page. Costello, Company's head of AI joins us. Next, this is Bloomberg Technology Enterprise work Management platform as Sana just wrapped its work Innovation Summit where announced new AI features that will do things like project coordination and workforce orchestration teams also be able to embed the new features without using code. Here with Morris Page Costello. She's the head of AI at Asana, and there's such pressure right now to ship new products, almost like on a weekly cadence. It was a big week for you. They start with the without code bit. Why is that significant?

This is important because leaders and team leads know that the most important work is across teams and they need to be empowered to set up AI to work in their existing workflows, across their existing work tools. No one wants more places to work. No one wants to remember when to engage with AI or not. And this enables people to actually set up AI directly where they're already working.

This is important because leaders and team leads know that the most important work is across teams and they need to be empowered to set up AI to work in their existing workflows, across their existing work tools. No one wants more places to work. No one wants to remember when to engage with AI or not. And this enables people to actually set up AI directly where they're already working.

What you just said, you know whether to engage or not, how to engage. Do you have any sort of early case studies or examples of how customers are actually using it and whether or not they're benefiting in a sort of easy to understand way.

What you just said, you know whether to engage or not, how to engage. Do you have any sort of early case studies or examples of how customers are actually using it and whether or not they're benefiting in a sort of easy to understand way.

Yeah.

Yeah.

One of the customers and the beta that is now available today was a career channel Outdoor, and they're a multinational advertiser. They use these AI workflows to effectively empower their creative productions and so when sales would send requests to creative teams, picture twenty five hundred requests a month, these requests were with before and after saved sixty percent of manual time and fifteen hours per request. And that's just one part of these smartworkflows.

One of the customers and the beta that is now available today was a career channel Outdoor, and they're a multinational advertiser. They use these AI workflows to effectively empower their creative productions and so when sales would send requests to creative teams, picture twenty five hundred requests a month, these requests were with before and after saved sixty percent of manual time and fifteen hours per request. And that's just one part of these smartworkflows.

In any company, particularly in an enterprise software company, right, there is a role that an AI agent can play. If you work at any tech company, you often have like in house software where there would be a very clear and useful use case for an AI agent. But I think loads of people that watch the show they don't really know what an AI agent is.

In any company, particularly in an enterprise software company, right, there is a role that an AI agent can play. If you work at any tech company, you often have like in house software where there would be a very clear and useful use case for an AI agent. But I think loads of people that watch the show they don't really know what an AI agent is.

Could you define it for us?

Could you define it for us?

Yes, an AI agent is effectively using generative AI or LM models to make a choice, effectively tool use and reasoning about what the proper next steps are. Now importantly, enterprise organizations care about accuracy, reliability, and ultimately auditability, and that's where this solution is very unique because it sits on top of the existing scaffolding of work structure in ASANA, which is all about transparency around who's doing what, by when and why, which you care about when AI is doing work as well.

Yes, an AI agent is effectively using generative AI or LM models to make a choice, effectively tool use and reasoning about what the proper next steps are. Now importantly, enterprise organizations care about accuracy, reliability, and ultimately auditability, and that's where this solution is very unique because it sits on top of the existing scaffolding of work structure in ASANA, which is all about transparency around who's doing what, by when and why, which you care about when AI is doing work as well.

Mark Benioff, who is the CEO of Salesforce, which is a very large enterprise or SaaS company has been talking a lot about what an AI agent is or is not, particularly in his critique of Microsoft's co Pilot, but there is clearly a tension on it. Why is it important that people start to understand and think about whether they use or need an AI agent at all?

Mark Benioff, who is the CEO of Salesforce, which is a very large enterprise or SaaS company has been talking a lot about what an AI agent is or is not, particularly in his critique of Microsoft's co Pilot, but there is clearly a tension on it. Why is it important that people start to understand and think about whether they use or need an AI agent at all?

I think the biggest unlock is what it is able to where it is able to have creativity. And what's important is that organizations decide the length of leash they're willing to give AI. What's important here is delegating slices of work to AI and having a perspective about what you want it to do you don't want it to do. Ultimately, people are accountable for work, the decisions, the results, and when you deploy an AI agent, you want to know what it did and why, and honestly, you want the ability to undo.

I think the biggest unlock is what it is able to where it is able to have creativity. And what's important is that organizations decide the length of leash they're willing to give AI. What's important here is delegating slices of work to AI and having a perspective about what you want it to do you don't want it to do. Ultimately, people are accountable for work, the decisions, the results, and when you deploy an AI agent, you want to know what it did and why, and honestly, you want the ability to undo.

It page We just have thirty seconds. Why is a Sauna good at AI agents?

It page We just have thirty seconds. Why is a Sauna good at AI agents?

Asana has a unique advantage with the structure of its data and it works across apps with the tools that teams use today. What's unique about the AI agents that Asana deploys for our customers is one they're highly customizable to their right in the context of apps, and three, they are exactly tailored to your team so that no one needs to make a choice about what to use and when. It just engages proactively on your behalf to reduce busy work and actually help execute some of the work right in context.

Asana has a unique advantage with the structure of its data and it works across apps with the tools that teams use today. What's unique about the AI agents that Asana deploys for our customers is one they're highly customizable to their right in the context of apps, and three, they are exactly tailored to your team so that no one needs to make a choice about what to use and when. It just engages proactively on your behalf to reduce busy work and actually help execute some of the work right in context.

Page Costello, head of AI at Asana, thanks for being here. Back on Bloomberg Technology. Welcome back to Bloomberg Technology. Ed Ludlow here in San Francisco. The technology story in financial markets is tech dragging us down at the index level. Look at the nas that one hundred, for example, kind of down a percentage point or more than a percentage point. It is some of the chip names that are most pronouncing their declines, but others are also lower ahead of earnings, for example Tesla that's after the bell. The socks down eight ten to one percent. You know what our top story is today, Let's get right to it. Qualcom, the chip maker, and ARM, the chip design firm, are both markedly lower. Bloomberg is reporting that ARM has canceled a license issue to Quaalcom for key intellectual poppits property for smartphone processor designs. It's an x escalation of an existing dispute which is headed for a trial in December, bucking the trend in that space load just really quickly is TSMC. Overnight we got used that TSMC has cut loose a client it found out was funneling chits to Huawei, which of course is a Chinese company subject to sanctions. Let's get back to that Qualcomm and ARM story and bring in Bloomberg Senior executive editor Tom Giles, who's out in London this week. Tom, this is so complex, the qualcomma ARMS story. The timing is astonishing. Frankly, Rene Huss was in the building with you this week. Christiano, a mom was on the show with me less than twenty four hours ago. As far as you can just explain the basics of what we've reported overnight, I think that's a good place to start.

Page Costello, head of AI at Asana, thanks for being here. Back on Bloomberg Technology. Welcome back to Bloomberg Technology. Ed Ludlow here in San Francisco. The technology story in financial markets is tech dragging us down at the index level. Look at the nas that one hundred, for example, kind of down a percentage point or more than a percentage point. It is some of the chip names that are most pronouncing their declines, but others are also lower ahead of earnings, for example Tesla that's after the bell. The socks down eight ten to one percent. You know what our top story is today, Let's get right to it. Qualcom, the chip maker, and ARM, the chip design firm, are both markedly lower. Bloomberg is reporting that ARM has canceled a license issue to Quaalcom for key intellectual poppits property for smartphone processor designs. It's an x escalation of an existing dispute which is headed for a trial in December, bucking the trend in that space load just really quickly is TSMC. Overnight we got used that TSMC has cut loose a client it found out was funneling chits to Huawei, which of course is a Chinese company subject to sanctions. Let's get back to that Qualcomm and ARM story and bring in Bloomberg Senior executive editor Tom Giles, who's out in London this week. Tom, this is so complex, the qualcomma ARMS story. The timing is astonishing. Frankly, Rene Huss was in the building with you this week. Christiano, a mom was on the show with me less than twenty four hours ago. As far as you can just explain the basics of what we've reported overnight, I think that's a good place to start.

Well, there is a dispute between these two companies. Qualcom one of the biggest chip makers, particularly when it comes to mobile phones. ARM is this company, this UK based company that owns the basically the designs for these chips. If you don't if you can't use the design, you can't make the chips. If you don't have basically if ARM decides to pull that design away from it the license to use the design. Qualcomm is going to be inhibited from making a big swath of the chips that it needs to make those mobile phones. This is a legal dispute between the two over an acquisition Qualcom made. It's not getting resolved. It's going to trial, and this ratchets up the pressure. This doesn't mean that they're going to absolutely pull those licenses. They have sixty days to resolve it. But on the eve of this trial, this is an instance of ARM really ratcheting up the pressure and saying, you know, you need to take these allegations of intellectual property infringement seriously.

Well, there is a dispute between these two companies. Qualcom one of the biggest chip makers, particularly when it comes to mobile phones. ARM is this company, this UK based company that owns the basically the designs for these chips. If you don't if you can't use the design, you can't make the chips. If you don't have basically if ARM decides to pull that design away from it the license to use the design. Qualcomm is going to be inhibited from making a big swath of the chips that it needs to make those mobile phones. This is a legal dispute between the two over an acquisition Qualcom made. It's not getting resolved. It's going to trial, and this ratchets up the pressure. This doesn't mean that they're going to absolutely pull those licenses. They have sixty days to resolve it. But on the eve of this trial, this is an instance of ARM really ratcheting up the pressure and saying, you know, you need to take these allegations of intellectual property infringement seriously.

Some of the analysts use words like leverage, and we'll speak to one of those analysts in just a moment.

Some of the analysts use words like leverage, and we'll speak to one of those analysts in just a moment.

You lead the team.

You lead the team.

I mean, this broke last night after a few days where both names are in the news. You know what else can you kind of tell me about our reporting and just the kind of timeline now running up to that trial in December?

I mean, this broke last night after a few days where both names are in the news. You know what else can you kind of tell me about our reporting and just the kind of timeline now running up to that trial in December?

Yeah, I mean this comes at a time when there is tremendous interest in the chip sector. As you know, it's against a backdrop of escalating US China tension, concerns about who is where these chips are ending up, concerns about making sure that the US has control over the full supply chain. At the same time, you have these chip stocks rallying going through the roof because of the expectations for demand for artificial intelligence. You mentioned in the introduction that TSMC is bucking the trend. They are a company that is really benefiting from the AI boom. All of these things are coming at This is the backdrop for Qualcomm in particular. Remember that they are the main maker of mobile chips. Apple's a big customer, and there's questions about a demand for the iPhone sixteen, how robust is that demand and will that hurt Qualcom? There are definite questions about whether the iPhone sixteen is a game changer of a phone. All of these things happening in the background, add to that tension between ARM and Qualcom, one of its biggest customers, and it's a recipe for a bit of turmoil in the chip market right now. And don't forget this isn't something that's just gonna hurt Qualcom. This could hurt ARM as well, because if you're not going to sell the licenses to these chips. That hurts them too. It's a risk, it's a big risk that they're taking. And my sense is, I mean, they're not saying it this way, but my sense is that this is really aimed at putting extra pressure on Qualcom on the eve of this trial, to maybe work out some kind of a settlement, maybe work out some kind of agreement that works to ARMS advantage.

Yeah, I mean this comes at a time when there is tremendous interest in the chip sector. As you know, it's against a backdrop of escalating US China tension, concerns about who is where these chips are ending up, concerns about making sure that the US has control over the full supply chain. At the same time, you have these chip stocks rallying going through the roof because of the expectations for demand for artificial intelligence. You mentioned in the introduction that TSMC is bucking the trend. They are a company that is really benefiting from the AI boom. All of these things are coming at This is the backdrop for Qualcomm in particular. Remember that they are the main maker of mobile chips. Apple's a big customer, and there's questions about a demand for the iPhone sixteen, how robust is that demand and will that hurt Qualcom? There are definite questions about whether the iPhone sixteen is a game changer of a phone. All of these things happening in the background, add to that tension between ARM and Qualcom, one of its biggest customers, and it's a recipe for a bit of turmoil in the chip market right now. And don't forget this isn't something that's just gonna hurt Qualcom. This could hurt ARM as well, because if you're not going to sell the licenses to these chips. That hurts them too. It's a risk, it's a big risk that they're taking. And my sense is, I mean, they're not saying it this way, but my sense is that this is really aimed at putting extra pressure on Qualcom on the eve of this trial, to maybe work out some kind of a settlement, maybe work out some kind of agreement that works to ARMS advantage.

Right, and to point out, as we just showed ARM shares it's more significantly lower than qualcoms are. Bloomberg some jars in London. Thank you very much. I want to go to stay see Rascom his senior analyst at Bernstein Research covering US semiconductors and semi conductor capital equipment. And in your note, which was in reaction to that Bloomberg report, I think you make the same argument that Tom just outlined. This was an action taken by ARM to your mind, to force some kind of pre trial settlement. Please take that from with it, Stacy.

Right, and to point out, as we just showed ARM shares it's more significantly lower than qualcoms are. Bloomberg some jars in London. Thank you very much. I want to go to stay see Rascom his senior analyst at Bernstein Research covering US semiconductors and semi conductor capital equipment. And in your note, which was in reaction to that Bloomberg report, I think you make the same argument that Tom just outlined. This was an action taken by ARM to your mind, to force some kind of pre trial settlement. Please take that from with it, Stacy.

Yeah, it feels that way. So it's a sixty day supposedly timeline, assuming they pulled they did this yesterday, the sixty day limit would be December twenty first, the trial right now, is scheduled for December sixteent through December twentieth, so it's kind of right.

Yeah, it feels that way. So it's a sixty day supposedly timeline, assuming they pulled they did this yesterday, the sixty day limit would be December twenty first, the trial right now, is scheduled for December sixteent through December twentieth, so it's kind of right.

On top of that.

On top of that.

Yeah, to me, this feels like an attempt to drive a settlement frum Qualcomm on the eve of the trial. It feels like the ramping up the negotiations are pretty hard there, So.

Yeah, to me, this feels like an attempt to drive a settlement frum Qualcomm on the eve of the trial. It feels like the ramping up the negotiations are pretty hard there, So.

Yes, Stacey.

Yes, Stacey.

On Monday night, Qualcom unveiled Snapdragon eight Elite, which is based on the new Via at position right, based on Nuvia designs less than twenty four hours ago. Christiano Romon came on the show with me to discuss it. Last night, bloomboag broke this story about Armed canceling the license as part of this dispute. Coincidence or what do you make of the chronology?

On Monday night, Qualcom unveiled Snapdragon eight Elite, which is based on the new Via at position right, based on Nuvia designs less than twenty four hours ago. Christiano Romon came on the show with me to discuss it. Last night, bloomboag broke this story about Armed canceling the license as part of this dispute. Coincidence or what do you make of the chronology?

Probably not right? They look like good parts, right, So, I mean, like the general thrust of this discus as I understand again, I will call it. I'm not a lawyer, and like I won't be on the jury either. But Qualcom bought this company, Nuvia. Nuvia was an armed server start, but what it really was it was a bunch of ex Apple guys. It was the Apple M one design team that designed Apple's first custom chip. Qualcom bought them to get that expertise in there going to be delivering products across our portfolio using that expertise. Qualcom's current products are made on something called the technology license. From that's likely off the shelf ARM stuff. Moving to an architectural license, where Qualcum does the custom gips, the worlds rates tend to be lower. Rates were actually higher. So what ARM I think really wants is for Qualcomm to apply Nuvia's higher rates like through the portfolio, because otherwise the rates would come down. And when qualcommb you know, and to enable that, ARM decided not to approve the license transfer of Nuvia to Qualcomm. Qualcum's response, and I'll be honest, I have a certain degree of sympathy for it.

Probably not right? They look like good parts, right, So, I mean, like the general thrust of this discus as I understand again, I will call it. I'm not a lawyer, and like I won't be on the jury either. But Qualcom bought this company, Nuvia. Nuvia was an armed server start, but what it really was it was a bunch of ex Apple guys. It was the Apple M one design team that designed Apple's first custom chip. Qualcom bought them to get that expertise in there going to be delivering products across our portfolio using that expertise. Qualcom's current products are made on something called the technology license. From that's likely off the shelf ARM stuff. Moving to an architectural license, where Qualcum does the custom gips, the worlds rates tend to be lower. Rates were actually higher. So what ARM I think really wants is for Qualcomm to apply Nuvia's higher rates like through the portfolio, because otherwise the rates would come down. And when qualcommb you know, and to enable that, ARM decided not to approve the license transfer of Nuvia to Qualcomm. Qualcum's response, and I'll be honest, I have a certain degree of sympathy for it.

Not a lawyer.

Not a lawyer.

Their response is effectively like, what are you talking about? We have our own architectural license. It covers the exact same ip in technology Take a hike, right, And that seems to be where this is. I think ARM is potentially worried that rates could go lower if Qualcomb makes a transition from technology license to architectural license. You know, I think if yes, Qualcom would agree to what ARM is wanting, then the rates would go higher and hopefully they'll settle out somewhere in the middle. Like I don't know, I can't imagine that it's good for either of them to actually take this in front of a jury. Jury trivels are are a bit of a craft shoot under the best of circumstances.

Their response is effectively like, what are you talking about? We have our own architectural license. It covers the exact same ip in technology Take a hike, right, And that seems to be where this is. I think ARM is potentially worried that rates could go lower if Qualcomb makes a transition from technology license to architectural license. You know, I think if yes, Qualcom would agree to what ARM is wanting, then the rates would go higher and hopefully they'll settle out somewhere in the middle. Like I don't know, I can't imagine that it's good for either of them to actually take this in front of a jury. Jury trivels are are a bit of a craft shoot under the best of circumstances.

So guys, allow me to take you some just to point out that Armed did not comment on the Bloomberg report, but Quilcom did.

So guys, allow me to take you some just to point out that Armed did not comment on the Bloomberg report, but Quilcom did.

Quilcom did.

Quilcom did.

So let's just show what Qualcom had to say, or at least some of it. And you know, it's kind of fighting talk, right, it's them saying that. You know, it's it's trying to strong arm a long time partner. And this is the bit I want to talk to you about interfere with our performance leading CPUs and then we can get to the royalty rates bite. Quilcom is not the same company today that it was when I moved to California six years ago. It's tried to diversify its business and the Nuvia acquisition and it's sort of change of what the technology offers of the smartphones core to that. Could you just speak about how you view Quilcom and it's placed in this smartphone market for Android.

So let's just show what Qualcom had to say, or at least some of it. And you know, it's kind of fighting talk, right, it's them saying that. You know, it's it's trying to strong arm a long time partner. And this is the bit I want to talk to you about interfere with our performance leading CPUs and then we can get to the royalty rates bite. Quilcom is not the same company today that it was when I moved to California six years ago. It's tried to diversify its business and the Nuvia acquisition and it's sort of change of what the technology offers of the smartphones core to that. Could you just speak about how you view Quilcom and it's placed in this smartphone market for Android.

Yeah, I know you.

Yeah, I know you.

So they're pretty dominant. They own they own the whole flagship space, particularly the flagships in smartphones where the asps are higher. They've also been, you know, the whole space has been making this push toward AI smartphones. And we can argue, do people want to AI smartphones does a driving upgrade cycle, But increasingly when people go out to buy smartphones, they're gonna buy AI smartphones because that's what's going to be for sale. And the content I think is materially hiring some of those ones versus phones without the the AI functionality and so, and that's a big area where like some of the Nuvia architectural expertise is coming in in terms of performance and everything else. We saw some of the benchmarks from some of the new stuff that they announced earlier this week, and why are you like the parts look really good?

So they're pretty dominant. They own they own the whole flagship space, particularly the flagships in smartphones where the asps are higher. They've also been, you know, the whole space has been making this push toward AI smartphones. And we can argue, do people want to AI smartphones does a driving upgrade cycle, But increasingly when people go out to buy smartphones, they're gonna buy AI smartphones because that's what's going to be for sale. And the content I think is materially hiring some of those ones versus phones without the the AI functionality and so, and that's a big area where like some of the Nuvia architectural expertise is coming in in terms of performance and everything else. We saw some of the benchmarks from some of the new stuff that they announced earlier this week, and why are you like the parts look really good?

Right?

Right?

That's kind of what and whether they're not just isolating Nubia though too smartphones. Clearly they've already launched PC chips AI and they're gonna be rolling down across the rest of their increasingly diversified portfolio auto and IoT and like everything else.

That's kind of what and whether they're not just isolating Nubia though too smartphones. Clearly they've already launched PC chips AI and they're gonna be rolling down across the rest of their increasingly diversified portfolio auto and IoT and like everything else.

Yeah, and I just point out, as we let you go, Stacey, that ARM shares are actually lower than Qualcom shares in this whole situation this morning. A great heavy back on Bloomberg's technology. Stacey Rasco On, senior analysts at Bernstein Research, Thank you very much. All Right, coming back up on the show, Wave CEO and co founder Alex Kendall, We're going to talk about a UK company making moves in autonomous driving that's coming up next.

Yeah, and I just point out, as we let you go, Stacey, that ARM shares are actually lower than Qualcom shares in this whole situation this morning. A great heavy back on Bloomberg's technology. Stacey Rasco On, senior analysts at Bernstein Research, Thank you very much. All Right, coming back up on the show, Wave CEO and co founder Alex Kendall, We're going to talk about a UK company making moves in autonomous driving that's coming up next.

Stay with us.

Stay with us.

This is Bluebow Technology, Okay, automotive AI maker Wave is making its way to Silicon Valley, the London based startups, expanding it's road testing and opening a new office in Sunnyvale, California. Alex Kendall's the Wave co founder and CEO and joins us now from the UK. And what's so interesting about Wave is no focus on the hardware, no focus on the cars, just the foundation model, the robotic brain that helps a car learn how to drive itself. Let's start by asking why you felt you needed to bring your testing to California, to the streets of San Francisco.

This is Bluebow Technology, Okay, automotive AI maker Wave is making its way to Silicon Valley, the London based startups, expanding it's road testing and opening a new office in Sunnyvale, California. Alex Kendall's the Wave co founder and CEO and joins us now from the UK. And what's so interesting about Wave is no focus on the hardware, no focus on the cars, just the foundation model, the robotic brain that helps a car learn how to drive itself. Let's start by asking why you felt you needed to bring your testing to California, to the streets of San Francisco.

Hey, Well, we're excited to bring a fresh approach to the US market. I think in general, being able to operate an AI and about to test it in such a diverse market as the US is going to be awesome for US. We really want to push the boundaries of generalization. The neat thing about this approach is that it can allow all ranges of automation from driver assistance up to full autonomy, with different types of vehicles and different driving environments, with different cultures. And you know, look, we're now training from data from over fifteen countries. But to be able to actually have a testing fleet on the ground and show that AI can generalize and drive in a new environment like the US in California, this is a really exciting moment for our business.

Hey, Well, we're excited to bring a fresh approach to the US market. I think in general, being able to operate an AI and about to test it in such a diverse market as the US is going to be awesome for US. We really want to push the boundaries of generalization. The neat thing about this approach is that it can allow all ranges of automation from driver assistance up to full autonomy, with different types of vehicles and different driving environments, with different cultures. And you know, look, we're now training from data from over fifteen countries. But to be able to actually have a testing fleet on the ground and show that AI can generalize and drive in a new environment like the US in California, this is a really exciting moment for our business.

I'll set out the pathway from here.

I'll set out the pathway from here.

You're going to start with basically level two plas kind of ADAS functionality, so you don't need a DMV permit. But what are the next stages, how will you expand the testing and what's your ultimate goal for the California market?

You're going to start with basically level two plas kind of ADAS functionality, so you don't need a DMV permit. But what are the next stages, how will you expand the testing and what's your ultimate goal for the California market?

Yeah, fun mentally waves building an embodied AI. This is an AI that brings brings it out of the out of the Internet and into the physical world to be able to drive and operate vehicles. And this is an AI that can understand the physical world can drive with different types of sensors. And what's really exciting for us is that while we want to deployed in a range of range of automotive products, the latest vehicles that have been produced by the industry have GPUs surround cameras and radar sensors and actually the perfect deployment environment to reap the benefits of this AI. So the bresh model we want to bring is a software model. We can see this AI deployed in vehicles, deployed as driver resistance and use that experience and exposure to improve the quality of system over time and ultimately bring us to this autonomous future we all dream of.

Yeah, fun mentally waves building an embodied AI. This is an AI that brings brings it out of the out of the Internet and into the physical world to be able to drive and operate vehicles. And this is an AI that can understand the physical world can drive with different types of sensors. And what's really exciting for us is that while we want to deployed in a range of range of automotive products, the latest vehicles that have been produced by the industry have GPUs surround cameras and radar sensors and actually the perfect deployment environment to reap the benefits of this AI. So the bresh model we want to bring is a software model. We can see this AI deployed in vehicles, deployed as driver resistance and use that experience and exposure to improve the quality of system over time and ultimately bring us to this autonomous future we all dream of.

You've raised more than a billion dollars from the lights of soft Bank and Verdia. Uber recently topped up the round. How quickly through that and where's the money going?

You've raised more than a billion dollars from the lights of soft Bank and Verdia. Uber recently topped up the round. How quickly through that and where's the money going?

Yeah, Look, we've been a fairly disciplined company for the last seven years. Seven years ago, we had the thesis of going all in on an end to end AI approach for autonomous driving, and it's something that we've been building out and pioneering some really interesting approaches that allow us to be more data efficient, to learn from simulation and generative AI. And so while we're seeing a lot of expansion and growth in the amount of data we're training on, we want to continue to make a lean and cost effective solution possible to come to market. And of course, the partners that we've got in the US that also make this really interesting for us to be able to operate in the same market closer to our partners like Uber, Nvidia, and Microsoft that have been really key past this journey to power our compute and the fleet learning of these systems is going to be so critical.

Yeah, Look, we've been a fairly disciplined company for the last seven years. Seven years ago, we had the thesis of going all in on an end to end AI approach for autonomous driving, and it's something that we've been building out and pioneering some really interesting approaches that allow us to be more data efficient, to learn from simulation and generative AI. And so while we're seeing a lot of expansion and growth in the amount of data we're training on, we want to continue to make a lean and cost effective solution possible to come to market. And of course, the partners that we've got in the US that also make this really interesting for us to be able to operate in the same market closer to our partners like Uber, Nvidia, and Microsoft that have been really key past this journey to power our compute and the fleet learning of these systems is going to be so critical.

Wave CEO Alex Candal, It's great to have you here on Bloombo Technology. Keep us posted on your progress. Happening today in Sa Paulo, Brazil, the B twenty Business Forum, Bloomberg's Jamana Bassetchi is.

Wave CEO Alex Candal, It's great to have you here on Bloombo Technology. Keep us posted on your progress. Happening today in Sa Paulo, Brazil, the B twenty Business Forum, Bloomberg's Jamana Bassetchi is.

There live with a very special guest, Jamana.

There live with a very special guest, Jamana.

Thank you.

Thank you.

Ed Yeah.

Ed Yeah.

Joining me right now is the Google Brazil president, Pablo Coelo.

Joining me right now is the Google Brazil president, Pablo Coelo.

Great to have you.

Great to have you.

With us, Thank you, Jama.

With us, Thank you, Jama.

Let me just start off by talking about the Brazil landscape as a whole. Brazil is probably the most advanced digital economy in all of Latin America.

Let me just start off by talking about the Brazil landscape as a whole. Brazil is probably the most advanced digital economy in all of Latin America.

What circumstances have allowed for that to happen.

What circumstances have allowed for that to happen.

Well.

Well.

First, it's a large market. We have two hundred and plus million people. Second, it's a country has suffered through inflation until the nineties, which drove a lot of the automation, and then the technology was employed to make sure that people would make the most out of their money, be that the financial sector or users. And third, because Brazilians are extremely entrepreneurs and they like technology, and we have a case with Google, Jamana. Google has been around for nineteen years and our platforms have a very good relationship with resiliences.

First, it's a large market. We have two hundred and plus million people. Second, it's a country has suffered through inflation until the nineties, which drove a lot of the automation, and then the technology was employed to make sure that people would make the most out of their money, be that the financial sector or users. And third, because Brazilians are extremely entrepreneurs and they like technology, and we have a case with Google, Jamana. Google has been around for nineteen years and our platforms have a very good relationship with resiliences.

What role do you see specifically for Google in terms of driving the digital transformation right now in the country.

What role do you see specifically for Google in terms of driving the digital transformation right now in the country.

There are so many rules. One is two empowered citizens. We have our platforms here are top five in the world for most of them. Brazilians have a love affair with technology and with Google platforms YouTube for example. Success. Also, it's important that we're able to empower business to be able to become more efficient. Efficiency in an economy like the Brazilian one, which is an emerging market is also pretty important. And we have now Brazilians very eager to adopt AI as the next wave of technology, and they're very optimist about the use of AI.

There are so many rules. One is two empowered citizens. We have our platforms here are top five in the world for most of them. Brazilians have a love affair with technology and with Google platforms YouTube for example. Success. Also, it's important that we're able to empower business to be able to become more efficient. Efficiency in an economy like the Brazilian one, which is an emerging market is also pretty important. And we have now Brazilians very eager to adopt AI as the next wave of technology, and they're very optimist about the use of AI.

Yeah, well, let me.

Yeah, well, let me.

Ask you about that, because on one hand, AI can increase efficiencies, increase productivity, but on the other hands there are also concerns about privacy, about data protection.

Ask you about that, because on one hand, AI can increase efficiencies, increase productivity, but on the other hands there are also concerns about privacy, about data protection.

So how do you see the path forward for AI?

So how do you see the path forward for AI?

Well, I think it starts with the right principles. We need to be bold and at the same time responsible about the use of AI. Google has adhere to the ethical principles of AI utilization, which is important. And the third very important is to have a dialogue around society to make sure that regulations are in place, but in a way that they are discussed with the society. We have the brazil Marco CIV which the Internet built is a net framework bill. It's now celebrating ten years of existence, and that was a very good example of how to conduct a process to create regulations. We involve the society, we involve businesses as developers, politicians, and we get to the best model in such emergent technology.

Well, I think it starts with the right principles. We need to be bold and at the same time responsible about the use of AI. Google has adhere to the ethical principles of AI utilization, which is important. And the third very important is to have a dialogue around society to make sure that regulations are in place, but in a way that they are discussed with the society. We have the brazil Marco CIV which the Internet built is a net framework bill. It's now celebrating ten years of existence, and that was a very good example of how to conduct a process to create regulations. We involve the society, we involve businesses as developers, politicians, and we get to the best model in such emergent technology.

Well, there was a high profile case recently in Brazil of a hit for tat that went on between elon mus X platform and the Brazilian regulator over concerns about dissemination of fake news and of hate speech. Specifically, what is Google doing to combat the proliferation of all of that hate speech, of this information, of fake news.

Well, there was a high profile case recently in Brazil of a hit for tat that went on between elon mus X platform and the Brazilian regulator over concerns about dissemination of fake news and of hate speech. Specifically, what is Google doing to combat the proliferation of all of that hate speech, of this information, of fake news.

What guardrails do you have in place?

What guardrails do you have in place?

The most important, thank is one we have to respect the law. So we work, we fight, and we remove anything that is related to hate crime, racism, violence, all types of crimes that we need to adhere to the law. That's a basic. Then we have platform rules, and then we invest in good content, quality content. We have partnerships in Brazil with more than one hundred and seventy five publishers. Because good content needs to go up to be able to show that we educate the consumers, help consumers to get the best out of our platforms. Bad content needs to either be the prioritized or in cases where we see reason and justice sees reason, remove that.

The most important, thank is one we have to respect the law. So we work, we fight, and we remove anything that is related to hate crime, racism, violence, all types of crimes that we need to adhere to the law. That's a basic. Then we have platform rules, and then we invest in good content, quality content. We have partnerships in Brazil with more than one hundred and seventy five publishers. Because good content needs to go up to be able to show that we educate the consumers, help consumers to get the best out of our platforms. Bad content needs to either be the prioritized or in cases where we see reason and justice sees reason, remove that.

Let me just ask you at the group level.

Let me just ask you at the group level.

The Department of Justice in the US has launched an investigation into Alphabet's practices. There are concerns that one of the ramifications could be an eventual up with the company due to practices that are put in place.

The Department of Justice in the US has launched an investigation into Alphabet's practices. There are concerns that one of the ramifications could be an eventual up with the company due to practices that are put in place.

What is your level of concern about that actually happening?

What is your level of concern about that actually happening?

You know, Jamana, I'm not in a position to discuss the global rules. I'm responsible for Brazil, but I think Google has declared quite well. It has put in blog posts all the information about this.

You know, Jamana, I'm not in a position to discuss the global rules. I'm responsible for Brazil, but I think Google has declared quite well. It has put in blog posts all the information about this.

Let me just ask you then, in Brazil specifically, do you think the regulator is getting the balance rights between innovation and safeguarding consumers.

Let me just ask you then, in Brazil specifically, do you think the regulator is getting the balance rights between innovation and safeguarding consumers.

We have been very pleased with our relationship with regulators.

We have been very pleased with our relationship with regulators.

We have being.

We have being.

Involved in dialogues every time we have the chance to discuss. We work together with the Supreme Court, with the Electoral Court, with the Senate, with the lower House to make sure that we all understand and come to a common denominator. This is important because this is new and we need to make sure that in a way we get the responsible approach. But we do not castrate the ecosystem of innovation and development, which is so important in Brazil. That we finished that by saying we have. However, Google has helped with a campus that we have in Staballa. For the left eighty years, we have accelerated four hundred and fifty companies here. So it means that there is a very entrepreneurial up in Brazil and we want to make sure it stays that way.

Involved in dialogues every time we have the chance to discuss. We work together with the Supreme Court, with the Electoral Court, with the Senate, with the lower House to make sure that we all understand and come to a common denominator. This is important because this is new and we need to make sure that in a way we get the responsible approach. But we do not castrate the ecosystem of innovation and development, which is so important in Brazil. That we finished that by saying we have. However, Google has helped with a campus that we have in Staballa. For the left eighty years, we have accelerated four hundred and fifty companies here. So it means that there is a very entrepreneurial up in Brazil and we want to make sure it stays that way.

Great, that's a good place to leave at Pablo the Google president over here in Brazil.