00:00>> BLOOMBERG TECH IS LIVE FROM COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: THIS IS BLOOMBERG TECH. PRESIDENT TRUMP SIGNED EXECUTIVE ORDERS TO BOOST AI DEVELOPMENT IN THE U.S. WE DIG DEEPER WITH WHITE HOUSE OFFICIALS. CAROLINE: PLUS WE GET BACK TO BIG TECH EARNINGS WITH TESLA AND ALPHABET RESULTS. TESLA SLIDING ON WARNINGS OF QUARTERS TO COME. ED: INTEL IS NEXT ON THE DOCKET. ITS TURNAROUND EFFORTS LATER TODAY. >> WE CHECK IN ON MARKETS THAT ARE ONCE AGAIN AT RECORD HIGHS. FOCUSING IN ON WHAT HAS BEEN THE UPLIFT FEEL-GOOD FACTOR OF THE FACTOR TRADE DEAL START TO ROLL IN. WE LOOK AT THE NASDAQ CURRENTLY UP A QUARTER PERCENT, IT HAD BEEN RECORD HIGHS SEEING ANOTHER BENCHMARKS AS WELL. I KNOW YOU’RE DIGGING INTO THE KEY CONTRIBUTORS TO THE UPSIDE AND DOWNSIDE. ED: TESLA ON TRACK FOR ITS BIGGEST DROP WITH A PERIOD OF TRANSITION IN THE CORE BUSINESS SUFFERING. LATER IN THE SHOW WE WILL GO DEEP ON BOTH OF THOSE NAMES AND NVIDIA IN THE SESSION IS PUSHING FRESH RECORD HIGHS. YESTERDAY’S WINNING THE AI RACE SUMMIT. BUT SPRINKLED WITHIN THAT A WARNING FROM THE PRESIDENT ABOUT HOW CLOSELY HE IS LOOKING AT NVIDIA. LET’S GET OUT TO MICHAEL SHEPPARD IN WASHINGTON DC. THE EXECUTIVE ORDERS ARE FRESH, ACTION BY THIS PRESIDENT TO ENACT HIS AI ACTION PLAN, STANDING IN — STANDING OVATION FROM JENSEN HUANG. >> IN THIS WE SAW PRESIDENT TRUMP EMBRACE ARTIFICIAL INTELLIGENCE AS A PILLAR OF HIS ECONOMIC AND NATIONAL SECURITY AGENDAS AND WITH IT WE SAW HIM PRACTICALLY THROW HIS ARMS RUN JENSEN HUANG DURING THE EVENT SIGNALING THE NVIDIA — SINGLING THE NVIDIA CEO OUT AND MAKING AI CHIPS THE POWER THIS NEW AND TRANSFORMATIVE TECHNOLOGY. BUT HE DID STRICTLY WARNING IN THEIR BEFORE GOING OUT TO PRAISE HIM HE LET IT SLIP THAT HE HAD THOUGHT ABOUT TRYING TO BREAK UP NVIDIA WHICH WOULD BE STARTLING AND VERY MUCH A MARKET SHAKING MOVE. YET HE SAID HE WAS TALKED OUT OF IT BY AIDS WHO POINTED TO THE COMPANY’S IMPORTANCE AND HOW WOULD IT TAKE IN YEARS TO DEVELOP THAT PREEMINENCE AND IF THE U.S. GOVERNMENT HAD GONE AFTER NVIDIA IT WOULD BE REALLY HARD TO WALK THAT BACK. CAROLINE: MIKE SHEPPARD ON THE LATEST ON THAT AI ACTION PLAN EVENT. LET’S GET MORE ANALYSIS, MORE PEOPLE IN THE ROOM. DIRECTOR OF THE WHITE HOUSE OFFICE OF SCIENCE AND TECHNOLOGY POLICY AND LET’S JUST START IT WAS SUCH AN ENTHUSIASTIC WELCOME EMBRACE OF AI WRIT LARGE. IT WAS PERHAPS JOVIAL IN NATURE COMING FROM THE PRESIDENT OF THE UNITED STATES BUT WHAT DID YOU MAKE OF THE FACT HE ONCE UPON A TIME CONSIDERED THINKING OF BREAKING UP NVIDIA? >> I THINK IT WAS A TREMENDOUS DAY FOR THE COUNTRY AND FOR AI MORE BROADLY. WE DEFINITIVELY TURNED THE PAGE ON WITH THE LAST ADMINISTRATION HAD TRIED TO DO TO HAMPER THIS INDUSTRY AND SHACKLE IT WITH A HIGH LEVEL OF REGULATION AND DIDN’T ALLOW IT TO FULLY SPREAD ITS WINGS. WAS TREMENDOUS ABOUT THE EVENT YESTERDAY WAS NOT ONLY THE PRESIDENT’S SPEECH BUT THE VICE PRESIDENT HIMSELF AND FIVE CABINET SECRETARIES. A BIG MOMENT FOR THE AMERICAN INDUSTRY, SHOWING HOW COMMITTED THE ADMINISTRATION IS SHOWING CANDIDATE AMERICAN DOMINANCE. ED: YOU HELPED TO WRITE THIS DOCUMENT AND FORMED THE POLICY ALONGSIDE THE ADVISORS DAVID SACHS. WHAT I GOT FROM CORPORATE AMERICA IS THEY FEEL THE ACTION PLAN IS ACTIONABLE, HEAVILY ROOTED IN THE REGULATION AND EXPEDITING PERMITS. OF THE 23 PAGES, WHICH SECTION DO YOU THINK GETS ENACTED BY THIS ADMINISTRATION FIRST? MICHAEL: WE ARE RACING AHEAD ON ALL OF THEM. THE ONE PIECE THAT’S ALSO VERY CRITICALLY IMPORTANT IS THE FOCUS ON EXPORTING AMERICAN AI, THIS IDEA WE WANT THE ENTIRE WORLD TO BE RUNNING ON AMERICAN ARTIFICIAL INTELLIGENCE STACK, THAT IS OUR CLOUD OUR CHIPS AND ALGORITHMS, ALL OF THAT NEEDS TO BE EXPORTED AND PACKAGED TO THE WORLD SO WE BECOME THE ECOSYSTEM OF CHOICE GLOBALLY AND THAT IS SOMETHING THE SECRETARIES HAVE BEEN TASKED TO WORK ON FOR THE COUNTRY. BETWEEN THAT AND A VERY AMBITIOUS AGENDA ON THE ACTUAL INFRASTRUCTURAL DOUBLE POWER THIS THERE’S A LOT FOR US TO GET DONE IN THE NEXT FEW MONTHS. CAROLINE: WHAT’S THE RULE — ED:WHAT IS THE RULEMAKING PROCESS FOR EXPORTING CHIPS IN PARTICULAR, THE WAY YOUR COLLEAGUE PUT IT WAS THE ADMINISTRATION IS COMFORTABLE WITH LARGE CLUSTERS GOING TO THIRD PARTIES FOREIGN COUNTRIES BUT AN AMERICAN COMPANY ACCESS TO THAT STACK WOULD BE PART OF THE EVALUATION PROCESS. DO WE GET A SUCCESSOR TO THE DIFFUSION RULE HAVE YOU STARTED DRAWING UP SOME GUIDELINES? MICHAEL: THAT’S BEING HANDLED BY PIS AND COMMERCE. WHAT WERE DOING THROUGH THE EXECUTIVE ORDER THE PRESIDENT SIGNED THE DEBARMENT OF COMMERCE’S TASK WITH WORKING TO CREATE AI PACKAGES WITH THE INDUSTRY. PACKAGES WE CAN WORK WITH THE STATE DEPARTMENT TO EXPORT AROUND THE WORLD. BECAUSE COMMERCE WILL BE AT THE TABLE WHEN THESE ARE BEING CREATED WITH OUR ALGORITHM AND MODEL COMPANIES WE HAVE PACKAGES WHICH WE BELIEVE WILL BE ABLE TO MAKE IT THROUGH THE EXPORT CONTROL RESTRICTIONS AND MAY ITS ORDINARY VIABLE AND VERY INTERESTING AND APPEALING TO LOTS OF COUNTRIES AROUND THE WORLD WHO ARE ALL VERY EXCITED TO HAVE AI AND DELIVER AI FOR PEOPLE. CAROLINE: BOY ARE THE U.S. COMPANIES RACING FOR AI. THE INVESTMENT FROM ALPHABET FOR EXAMPLE UNDER THE 10 BILLION TERMS OF CAPITAL EXPENDITURE. THESE COMPANIES ARE HUGE. ALPHABET POTENTIALLY FACING A BREAKUP. WE ALSO KNOW META IT SELF IS BEING ANALYZED. WILL THESE COMPANIES ALWAYS BE ALLOWED TO BE HUGE IF THE AI INNOVATION IS THE WIN? MICHAEL: THAT’S NOT SOMETHING I PARTICULARLY FOCUS ON HER LOOK AT, BUT TO BE HONEST I THINK WE ARE VERY BLESSED IN THE UNITED STATES WE HAVE THE GREATEST TECHNOLOGY COMPANIES IN THE WORLD, THEY ARE DELIVERING THE GREATEST PRODUCTS IN THE WORLD THAT CITIZENS OF THE WORLD ALL WANT TO USE. LOOK AT THE NUMBERS OF USAGE FOR LARGE LANGUAGE MODEL BUILDERS IT IS ABSOLUTELY INCREDIBLE. THE ENTIRE WORLD WANTS TO RUN AMERICAN RAILS AND WE NEED TO MAKE SURE REGULATIONS ARE OUT OF THE WAY TO MAKE SURE WE GET IT OUT THERE. CAROLINE: I THOUGHT WAS INTEREST IN THE COMMENTS FROM PRESIDENT TRUMP WHILE ANNOUNCING THE AI ACTS AND SIGNING EXECUTIVE ORDERS WAS ONE OF COPYRIGHT DOUBLES TRYING TO PUSH BACK ON THIS NEED TO BE COMPENSATED IF YOU’RE SOMEONE WHO’S MADE THE WORK THE ULTIMATE MODELS WERE TRAINED UPON BREADTH WILL COPYRIGHT BE IN THE LEGISLATION? MICHAEL: IN THE PRESIDENT’S SPEECH THE PRESIDENT DISCUSSED THE IMPORTANCE OF BEING ABLE TO USE MATERIALS IN THE TRAINING OF THESE MODELS AND THIS IS SOMETHING THAT’S QUOTED BACK AND FORTH AND DISCUSSED A LOT GLOBALLY AND WE ARE EXCITED TO SEE WHERE IT ALL PLAYS OUT. ULTIMATELY SPEAKING WHAT WE WANT TO DO IS ALLOW TRAINING TO HAPPEN IN THE UNITED STATES AND THAT SOMETHING BEING SORTED OUT. ED: WHY IS THE ISSUE OF VISAS AND IMMIGRATION OF TALENT NOT INCLUDED IN THE ACTUAL PLAN? MICHAEL: WE TALK A LOT ABOUT THE IMPORTANCE OF THE PEOPLE WHO WILL MAKE THE AI ECOSYSTEM THRIVE AND ONE THING THAT WAS UNIQUE AND SPECIAL ABOUT THE REPORT WHICH DOESN’T GET TALKED A LOT ABOUT WHEN IT COMES TO THE AI ECOSYSTEM IS THE IMPORTANCE OF ACTUAL BUILDERS AND HOW WE BUILD OUT THE INFRASTRUCTURE FOR AI. THE PEOPLE WE NEED TO MAKE AI SUCCEED WE NEED HVAC PEOPLE, ELECTRICIANS, ALL OF THESE AMAZING CAREERS THAT ARE ABLE TO BUILD THESE MASSIVE DATA CENTERS FOR THE AMERICAN PEOPLE. AND IT ALSO BRINGS UP THE POINT WE NEED GREAT TALENT AND GREAT AMERICANS WILL WORK ON THIS TECHNOLOGY. ED: THE WAY MR. JENSEN HUANG HAS PUT IT TIME AND AGAIN IS MORE THAN 50% OF THE WORLDS AI RESEARCHERS ARE FROM CHINA OR CURRENTLY IN CHINA AND IF YOU LOOK AT RECENT NEWS FLOW AND I KNOW THAT YOU DO, ALL OF THESE MEMBERS OF TALENT MOVING FROM APPLE TO META OR GOOGLE TO META- AND IT’S SUPER INTELLIGENCE LAB ARE EITHER FIRST-GENERATION IMMIGRANTS FROM SOMEWHERE IN THE WORLD INCLUDING CHINA. DO YOU ACKNOWLEDGE THE ADMINISTRATION NEEDS TO COME UP WITH A PLAN TO ATTRACT TALENT FROM OUTSIDE OF THIS COUNTRY TO FUEL THE AI INDUSTRY HERE? MICHAEL: AMERICA IS ALREADY THE PLACE WHERE THE BEST AND BRIGHTEST PEOPLE FROM AROUND THE WORLD WANT TO COME, LIVE WORK AND STUDY AND WE ARE BLESSED WITH THAT AND CONTINUE TO HAVE AMAZING LEGAL PATHWAYS FOR THE GREATEST THINKERS AND MINES AND ENGINEERS TO WORK IN THE UNITED STATES. WHERE I SPENT A LOT OF TIME THINKING ABOUT IS HOW DO WE HAVE MORE NATIVEBORN AMERICAN TALENT SUCCEEDING IN BEING EMPLOYED BY OUR GREAT TECHNOLOGY COMPANIES. THE PERCENTAGE OF AMERICANS PURSUING HIGH-END STEM DEGREES HAS BEEN DECLINING OVER THE LAST 20 YEARS, THAT IS A CURVE WE AIM TO CHANGE. WE NEED MORE AMERICANS PURSUING PHD’S AND ARTIFICIAL INTELLIGENCE AND COMPUTER SCIENCE AND ENGINEERING AND THAT SOMETHING WE ARE WORKING HARD ON. CAROLINE: ALSO WHAT’S INCLUDED IS WILL THE FOCUS ON RESKILLING, RETRAINING AND HOW CAN STATES AND COMPANIES DO THAT. DO YOU THINK THERE’S ENOUGH TO SUPPORT WHAT WILL BE A TRUE UPHEAVAL IN THE LABOR MARKET. MICHAEL: I THINK WE CAN GET IT DONE. THE SECRETARY OF LABOR AND OTHERS ARE EXCITED ABOUT DRIVING THESE PROGRAMS FORWARD. I TALKED TO BUILDERS BUILDING OUT STARGATE SAYING SOMEWHERE BETWEEN 25 TO 50 STATES IS WHERE THEY HAVE TO BRING IN OTHER FOLKS TO WORK ON THESE PROJECTS AND THAT SOMETHING WE NEED TO FIX, THAT’S A CURVE WE NEED TO BEND AND GET MORE PEOPLE BEING ABLE TO WORK ON THESE ACTUALLY HIGH-PAYING VERY EFFICIENT GREAT JOBS FOR AMERICANS TO BE ABLE TO ALLOW THEM TO PARTICIPATE. ED: THE PLAN INCLUDES A PROVISION TO CONTRACT ONLY WITH DEVELOPERS USING NONBIASED MODELS. THE PRESIDENT BOUGHT THE ISSUE UP TALKING ABOUT WOKE IN THE CONTEXT OF MODELS. EXPLAIN WHY THAT WAS INCLUDED PLEASE. MICHAEL: THE PRESIDENT HAS BEEN CLEAR FROM DAY ONE ABOUT TRYING TO REMOVE MARXIST D.E.I. IDEOLOGY AND A BIG PART OF THAT IS MAKING SURE THE MODELS AND THE TECHNOLOGY THAT ACTUALLY PROCURE AND SPEND TAXPAYER DOLLARS ON DOES NOT SUPPORT THESE IDEOLOGIES AND THAT’S WHAT YOU WILL SEE CHANGES IN THE WAY WE ARE PROCURING OUR MODELS TO MAKE SURE WE ELIMINATE THIS. MICHAEL: DIRECTOR OF THE WHITE HOUSE OFFICE OF SCIENCE AND TECHNOLOGY POLICY. THANK YOU. COMING UP, ELON MUSK WARNS OF ROUGH QUARTERS AHEAD FOLLOWING ONE OF TESLA’S WORST STRETCHES AND SINCE FIRST STARTED PRODUCING EV’S THIS IS BLOOMBERG TECH. ♪ >> WE ARE PROBABLY IN FOR A FEW ROUGH QUARTERS. Q4, Q1, MAYBE Q2 THE SECOND HALF OF NEXT YEAR TO THE END OF NEXT YEAR, I THINK I WOULD BE SURPRISED IF TESLA’S ECONOMICS ARE NOT VERY COMPELLING. CAROLINE: TESLA CEO ELON MUSK ON THE EARNINGS CALL YESTERDAY. SHARE PRICE REACTION IS STARK. WILLIAM STEIN IS WITH US. WAS THERE ANYTHING ABOUT THIS AUTONOMY PROMISE THAT IS ENOUGH TO MAKE UP FOR THE UGLY FUNDAMENTAL PICTURE IN THE HERE AND NOW? >> SURE, IF YOU TAKE A VERY LONG TERM VIEW AND LOOK AT THE TRACK RECORD OF THIS REMARKABLE HUMAN BEING AND THE TEAM HE’S BEEN ABLE TO ASSEMBLE, THEY HAVE DONE SOME REALLY AMAZING THINGS WITH NEW TECHNOLOGY IN AUTOMOTIVE AND CERTAINLY IN AI AND IT IS MOVING IN THAT DIRECTION. ONE CAN CERTAINLY TAKE THAT VERY MUCH OPTIMISTIC VIEW ON THE LONG-TERM, HOWEVER THE SHORT-TERM CLEARLY SOUNDS WORSE. CAROLINE: ON THE EARNINGS — ED: ON THE EARNINGS CALL YOU ASKED A QUESTION ABOUT A MORE AFFORDABLE MODEL. LARGE INTERJECTED, I THINK IT IS AND SAID WE WON’T TALK ABOUT IT AND THEN ELON INTERJECTED AND SAID IT’S JUST A MODEL Y. I’VE CHECKED THE TAPE SO MANY TIMES. IT’S JUST A MODEL Y. WHY IS IT THAT IMPORTANT THAT HE ANSWER YOUR QUESTION AND WHERE DOES IT SIT INTO ROBOTAXI? WILLIAM: I DON’T THINK IT’S SO RELEVANT TO ROBOTAXI, BUT THIS LOW COST VEHICLE IS SOMETHING THEY HAVE PROMISED FOR A WHILE AND IS SUPPOSED TO BE A HALF STEP BETWEEN WHAT THEY ARE DOING NOW AND WHAT THEY PROMISED AT THE LAST ANALYST DAY WHICH WOULD BE A SIGNIFICANTLY COST REDUCED CAR A SMALLER FORM FACTOR AND A DIFFERENT ARCHITECTURE ENTIRELY. WHAT HE TALKED ABOUT YESTERDAY OR WHAT I ASKED THEM TO TALK ABOUT WAS GIVE US MORE DETAIL ON THIS INTERIM THING YOU SAID YOU WERE MAKING IN THE FIRST HALF OF THIS YEAR AND HE REITERATED THAT ON THE PRESS RELEASE, CALL AND WE ARE ALL SCRATCHING OUR HEADS WHERE IS IT IN HIM SAYING THE FORMFACTOR LOOKS LIKE A MODEL Y, FROM MY PERSPECTIVE THAT WAS NOT SURPRISING AT ALL. I WAS TRYING TO DRAW OUT FROM HIM SOME DETAILS AS TO WHAT THE ARCHITECTURE WOULD LOOK LIKE AND TO WHAT DEGREE THE COST WOULD COME DOWN AS A RESULT OF THE NEW INNOVATIONS HE IS BRINGING. CAROLINE: WE GOT NO CLARITY AND ULTIMATELY THE INTERJECTION OF A NEW CHEAPER MODEL IS WHAT’S MEANT TO PERHAPS DRIVE SALES IN THE NEXT HALF AND THE FUTURE YEAR. IF WE ARE NOT GETTING THAT CLARITY ARE WE GETTING CANNIBALIZATION IF IT LOOKS AND FEELS A, MODEL Y. WILLIAM: I THINK THAT’S SMART POINT YOU ARE MAKING. THERE ARE SOME CONSUMER TAX CREDITS THAT ARE GOING AWAY, THERE ARE ALSO REGULATORY CREDITS REVENUE WILL DECLINE FROM THAT. I SEE AN INCREMENTAL REDUCTION IN THE COST AND THEREFORE PRICE THEY CAN CHARGE CUSTOMERS AS PERHAPS MAINTAINING VOLUMES AT THIS LEVEL OR GROWING THEM A LITTLE BIT. I DON’T THINK THIS WILL EVEN BE A SIGNIFICANT EVOLUTION IN THE STORY. WILLIAM: THANK YOU VERY MUCH RECAPPING ONE OF THE QUESTIONS POSED ON THE CALL. ALPHABET LAST NIGHT SAID THE DEMAND FOR AI PRODUCTS BOOST SALES NOW REQUIRES AN EXTREME INCREASE IN CAPITAL SPENDING. MANAGING DIRECTOR OF GLOBAL RESEARCH JOINS US. I PUT THE EARNINGS TRANSCRIPT THROUGH VARIOUS GENERATIVE AI TOOLS AND THE ANSWER I GOT WAS AI FUELED GROWTH AT A HIGHER COST. DOES THAT SOUND RIGHT FOR YOU? >> I THINK SO. THANKS FOR HAVING ME. THERE IS JUST A TREMENDOUS AMOUNT OF FOCUS ON AI AND THE CONCLUSION HERE FROM THE EARNINGS IS AI REALLY — RELATED INVESTMENTS ARE SHOWING AND BEARING FRUIT. NOT ONLY IN SEARCH WHICH IS THEIR BREAD-AND-BUTTER BUT ALSO IN CLOUD WHERE REVENUE GREW SIGNIFICANTLY HIGHER THAN WHERE EXPECTATIONS WERE. SO FUNDAMENTALS ARE GETTING STRONGER FOR GOOGLE, THEY ARE SHOWING IT AND JUSTIFYING WITH GREATER CAPEX SPEND SO THEY CAN CONTINUE THE DURABILITY IS JUSTIFIED. CAROLINE: WE WILL SEE IF HE WAS MAKING THAT. I’M INTERESTED WHY THIS IS NEGATIVE FOR AMAZON? ULTIMATELY THIS A BEAT ACROSS THE BOARD, BUT NOT FOR AMAZON. SHWETA: I SHOULD HAVE BEEN CLEAR IN MY NOTE TO BE A LITTLE BIT MORE UPFRONT. IN THE SECOND QUARTER I THINK IT WOULD BE POSITIVE FOR AMAZON. WITH CLOUD MEMBERS PRETTY STRONG FOR GOOGLE — CLOUD NUMBER STRONGER FOR GOOGLE. ALSO HAVE SEEN BENEFITS OF DEMAND. THE NEGATIVE PIECES GOOGLE ALSO COMMENTED ON SUPPLY DEMAND REMAINING TIGHT SO THE CAPACITY CONSTRAINTS THEY ARE NOT OUT OF THE WOODS AND ONE OF THE KEY FOCUS AREAS WAS WHETHER WE WOULD SEE ACCELERATION IN DATA IN THE BACK HALF AND AS EARLY AS THE THIRD QUARTER. WE MAY NOT SEE THAT JUST YET PUSHED INTO Q4 AND BEYOND. >> ONE OF YOURSELF SIDE COLLEAGUES BASICALLY SAID GOOGLE’S HAND HAS BEEN FORCED BY OPENAI AND OPENAI IS COMMITTING TO SPEND. HOW HONEST DO YOU FEEL ALPHABET OR GOOGLE WERE ABOUT THE PRESSURES THEY ARE FACING TO SPEND THEIR WAY INTO A SITUATION AROUND THAT SITUATION. SHWETA: I THINK THERE IS A GROWING AMOUNT OF PRESSURE THAT’S PRETTY WELL DOCUMENTED ACROSS THESE — WITH MARK ZUCKERBERG IS SAYING AND WHAT IS ACTUALLY HAPPENING. BUT THE BENEFIT WITH GOOGLE IS THAT THEY DO ALSO HAVE THE ADVANTAGE OF THE INFRASTRUCTURE OF DEEP MIND RESEARCH GROUP WITH SOME OF THE BEST ENGINEERS OUT THERE. NOT ONLY AN AI PAY PACKAGE BUT ALSO WHO YOU WORK WITH, HOW INNOVATIVE YOUR WORK IS ALSO MATTERS. I THINK THERE WAS SOME TRUTH BEHIND WHAT THEY WERE SAYING THE RETENTION LEVELS ARE KIND OF WHERE THEY WANT TO BE. CAROLINE: ALWAYS GREAT TO GET YOUR NOTES AND EXPERTISE ON THE SHOW. ANOTHER COMPANY OUT WITH EARNINGS, SERVICENOW. SEEING STRONG OUTLOOK FOR REVENUE IN THE THIRD QUARTER AS THEY ADOPT SOFTWARE TOOLS. I SPOKE WITH BILL MCDERMOTT WHO TALKED ON THE COMPANY SAVINGS AND LABOR WITH THE HELP OF HIS OWN AI. BILL: WE ARE SLOWING DOWN THE HIRING AND JOBS THAT ARE SOUL CRUSHING JOBS AND WE THINK ABOUT I.T. SUPPORT. 97% OF STANDARD SOFTWARE AUTOMATICALLY GENERATED BY AI NOW. AND THE PRESSURE ON SUPPORTING FUNCTION AND PEOPLE HAS BEEN CUT IN HALF. CUSTOMER SUPPORT 80% OF THE CUSTOMER INQUIRIES AND CASES NOW ARE FULLY MANAGED BY AGENTIC AI. THING ABOUT SECURITY AND RISK MANAGEMENT IN REAL TIME ALL THE PATCHWORK IN THE CHANGE MANAGEMENT IS DONE BY AGENTS NOW AND THE SAME IS TRUE GO TO MARKET. THERE NO PREP WORK ANYMORE, THEY’RE AI TEAMMATE IS DOING THAT FOR THEM AT SERVICE NOW. THE SPEED OF THE COMPANY HAS ACCELERATED DRAMATICALLY, THE SUPPORTING CAST OF THE SOUL CRUSHING WORK IS NOW BEING DONE BY AGENTS. YOU DON’T HAVE TO PAY THEM AND THEY DON’T NEED ANY LUNCH AND THEY DON’T HAVE ANY HEALTH CARE BENEFITS SO THEY ARE VERY AFFORDABLE. AND THAT REALLY COMPLEMENTS OUR WORKFORCE PRIDE WE ARE STILL HIRING BUT WE ARE HIRING LESS IN THOSE SUPPORTIVE FUNCTIONS. I SUPPOSE THAT WILL HAPPEN TO COMPANIES SPRAYED I SAY THAT BECAUSE WE NOW NEED TO THINK ABOUT HOW YOU RUN A CORPORATION ON SERVICE NOW. HOW YOU CHANGE THE WAY YOU RUN YOUR BUSINESS PROCESSES. IT COULD BE PROCURE TO PAY, HIGHER TO RETIRE, THESE ARE ALL PROCESSES THAT GO ACROSS FUNCTIONS AND WE NEED TO HAVE THOSE 20TH-CENTURY ORG CHARTS OBLITERATED. WE NEED TO WORK IN TEAMS, TEAMS NEED TO WORK ACROSS PROCESSES AND THE AGENTS NEED TO BE THE BEST FRIENDS TO HUMANS AND IF WE DO THIS RIGHT THE GDP OF THE WORLD WILL GO UP, COMPANIES WILL OUTPERFORM NOT JUST ON THE COST TO TAKE OUT AND PRODUCTIVITY BUT THEY WILL BE BUILDING NEW HORIZONS WITH BUSINESS MODELS AND NEW DREAMS ON THE SERVICE NOW PLATFORM. CAROLINE: LET’S JUST SHIFT TO IBM SHARES BECAUSE THEY ARE DOWN PRETTY SIGNIFICANTLY OFF THEIR LOWS BUT I SPOKE WITH ARVIN KRISHNA YESTERDAY THE CEO OF IBM, HE HAD BEEN UPBEAT FEELING GOOD ABOUT THE PRODUCT AND ALSO FELT GOOD ABOUT FEDERAL SPENDING WHICH HAD BEEN A KEY QUESTION MARK. THEY WANT TO MODERNIZE AND LEVERAGE WITHIN THE FEDERAL GOVERNMENT THEIR OPPORTUNITIES AND COMPETE FOR THAT BUSINESS. KEEP AN EYE ON IBM SHARES. ED: THE AMAZON PRIME DAY MISSTEP. WHY THEIR PLAN COULD HAVE BACKFIRED. THIS IS BLOOMBERG TECH. ♪ CAROLINE: FIRST UP, MORE FALLOUT FROM MICROSOFT SHAREPOINT FLAW. HACKERS HACKED SEVERAL ENTITIES. SOUTH AFRICA’S NATIONAL TREASURY SAID IT IS SEEKING HELP FROM MICROSOFT AFTER IDENTIFYING MALWARE ON ITS NETWORK. AMAZON’S PRIME DAY PLAN BACKFIRES. THE EXTENDED PRIME DAY SALES WERE MEANT TO GIVE MORE TIME FOR CUSTOMERS TO BROWSE BUT SHOPPERS COMPARED PRICES AND WENT TO WALMART. ELON MUSK’S IS EXCITED TO PLANT CHIPS INTO 20,000 PEOPLE BY THE YEAR 2031. THAT’S ACCORDING TO DOCUMENTS BY BLOOMBERG. NEURALINK HAS RAISED $3 BILLION FOR INVESTORS AND IS NOW BACK — VALUED AT 9 BILLION PRIDE — BILLION. ED: DISCUSSING HOW OPEN SOURCE MODELS COULD BENEFIT FROM THE WHITE HOUSE’S AI ACTION PLAN. THIS IS BLOOMBERG TECH. ♪ >> WELCOME BACK TO BLOOMBERG TECH. A QUICK CHECK ON THE MARKETS BECAUSE THEIR RECORD HIGHS. THE NASDAQ 100 UP 3/10 OF A PERCENT. KEY MOVES TO THE DOWNSIDE INCLUDING TESLA. NVIDIA CRUSHING IT TO A NEW RECORD HIGH. WE ARE UP ACROSS THE BENCHMARKS TODAY. EUROPEAN TRADE DEAL FUELING SOME RISK ON SENTIMENT. A COMPANY WITH NO RISK ON SENTIMENT FOLLOWING THE MOST, ST MICRO. I’M LOOKING AT THE ADRS TRADED IN THE U.S. BUT IT’S DOWN IN EUROPE. THIS AFTER THEIR NUMBERS SHOWED A SURPRISE OPERATING LOSS, BUT ALSO BIG EXPOSURE TO THE AUTOMOTIVE SECTOR LIKE TESLA. AND THEY’RE SEEING SOME SLOWDOWN. MARGINS ALSO LOOKING FOR THE FOURTH QUARTER. ED: ADD DEVELOPERS AND CHIPMAKERS ARE RALLYING BEHIND PRESIDENT TRUMP’S AI ACTION PLAN. YESTERDAY I CAUGHT UP WITH LISA WHO SAID THE EFFORTS TO BRING SEMICONDUCTOR PRODUCTION TO THE U.S. WAS STRATEGICALLY IMPORTANT BUT PAYMENT HIGHER COST. LISA: I THINK THE AI ACTION PLAN HELPS THIS NOTION OF BRINGING UP THE RESOURCES THAT ARE NECESSARY WHETHER IT’S REGULATORY OR POWER OR JUST ENSURING THERE IS A VIEW THAT THIS IS A PRIORITY AND IF IT IS A PRIORITY FOR THE ADMINISTRATION IT WILL BE THAT FOR THE INDUSTRY AND IT COALESCES ALL OF THE ASPECTS THAT ARE NECESSARY BREAK IT IS STILL HARD WORK. I DON’T WANT TO SAY WE CAN DO THIS QUICKLY. IT IS STILL MULTI-YEARS. WE WILL START MANUFACTURING THIS YEAR AND ADD TO IT AS WE GO FORWARD. ED: ONE OF THE THINGS YOU ADDRESSED ONSTAGE IS THE IDEA OF RELATIVE PRICE COMPARISON IN THE UNITED STATES VERSUS ABROAD. THERE IS OF MARGINAL DEGREE OF GREATER EXPENSE. YOU SAID IT WAS LESS THAN 20% MORE THAN 5% SOMEWHERE HIGH DOUBLE DIGITS. BUT IF YOU ARE BUILDING THE BROADER COMPUTE SYSTEM IN THE UNITED STATES DOES IT MATTER? HOW DO YOU APPROACH THE ECONOMICS OF IT. LISA: THE ECONOMICS OF IT ARE WE HAVE TO CONSIDER JUST THE RESILIENCY IN THE SUPPLY CHAIN. I THINK WE LEARNED THAT FROM THE PANDEMIC. THE IDEA YOU THINK ABOUT YOUR SUPPLY CHAINS NOT JUST BY THE LOWEST COST BUT BY LIABILITY AND RESILIENCY AND ALL OF THOSE THINGS. THAT’S HOW WE ARE THINK ABOUT U.S. MANUFACTURING. IT WILL BE MORE EXPENSIVE FRANKLY SOME OF THE WORK THAT’S BEEN DONE TO ENCOURAGE SEMICONDUCTOR INVESTMENT HAS BEEN HELPFUL BUT WHEN YOU AVERAGE IT ACROSS EVERYTHING ELSE THAT YOU NEED TO BUILD THIS COMPUTING INFRASTRUCTURE I THINK IT’S A VERY GOOD INVESTMENT FOR US TO MAKE TO ENSURE THAT WE HAVE AMERICAN MANUFACTURING AND RESILIENCY. ED: EXECUTIVE ORDERS FROM THE PRESIDENT AND OTHER PIECES OF SPECIFIC POLICY. WHAT IS LEFT TO DO IN YOUR MIND? WHAT NEEDS TO BE ACTED EITHER FROM A SUPPLY CHAIN POINT OF VIEW OR YOUR ABILITY TO SELL YOUR TECHNOLOGIES AROUND THE WORLD. LISA: WHAT I LIKE ABOUT THE ACTION PLAN IS I BELIEVE IT IS ACTIONABLE. THERE’S A LOT OF THINGS WILL BE LOOK AT IT IT IS A PERFECT BLUEPRINT FOR PUBLIC-PRIVATE PARTNERSHIP AND WE WILL BE ACTIVE WITH THE ADMINISTRATION TO TRY AND HELP SHAPE SOME OF THOSE CONVERSATIONS ABOUT WHAT SHOULD BE EXPORTED, WHAT AN OPEN ECOSYSTEM LOOKS LIKE. HOW DO WE INFER AI FOR SCIENCE IS FRONT OF MIND. WE ARE ACTIVE WITH THE DEPARTMENT OF ENERGY, THE ENTIRE NATIONAL LAB INFRASTRUCTURE WHICH CAN HELP ACCELERATE AI IN THE COUNTRY. WE ARE READY TO GO. ED: THAT WAS THE AMD CEO SPEAKING TO ME IN D.C. YESTERDAY. LET’S TALK ABOUT THE IMPACT OF THIS NEW U.S. AI POLICY THE AI ACTION PLAN. HEAD OF AI RESEARCH AT POLICY WAS IN THE ROOM YESTERDAY AND NOW WITH US IN THE D.C. STUDIO. WHEN I PRINTED OUT THE DOCUMENT I TURNED TO PAGE ONE AND IN THE INDEXING OPEN SOURCE AND OPEN WEIGHT WAS SO HIGH UP WHICH WAS A SURPRISE TO MANY PEOPLE, >> IT’S NOT JUST FOR HUGGING FACE IT IS FOR THE COMMUNITY AT LARGE, IT’S TIME THE U.S. GETS BACK TO ITS ROOTS OF OPEN DEAF ROOTS OF OPEN SOURCE FOR INNOVATION. CAROLINE: WHY IS OPEN-SOURCE SO IMPORTANT TO THE FUTURE OF INNOVATION. IRENE: SO MUCH OF WHAT HAS STARTED THIS AI BOOM TODAY IS REALLY THE FOUNDATION OF OPEN SCIENCE, THE ORIGINAL PAPERS THAT CREATED THE TRANSFORMERS WE ARE SEEING TODAY AND THERE IS SOMETHING IN THAT REPORT FOR EVERYBODY SO WE ARE LOOKING FORWARD TO THE NEXT GENERATION OF MANUFACTURING TO THE — AND TO THE MANY AREAS OF SCIENCE WHERE WE ARE SEEING MORE DEVELOPMENT THROUGH OPEN SOURCE OF OPEN SCIENCE. IT’S NOT JUST LANGUAGE MODELS. MANY COMMITTEES RELY ON SHARING AND COMMUNITY WORK. ED: WHAT LISA WAS TALKING ABOUT WASN’T INVOLVEMENT IN FOREIGN POLICY FROM HER PERSPECTIVE, HOW INVOLVED HAS THIS ADMINISTERED — HAVE THEY BEEN IN THIS ADMINISTRATION. ARE THESE CONVERSATIONS YOU WERE INVOLVED IN? IRENE: WE WERE LUCKY TO ENGAGE DEEPLY WITH THIS ADMINISTRATION. WE APPRECIATED THE ATTENTION THIS ADMINISTRATION HAS GIVEN THE LITTLE TECH WITH OUR 200 PLUS TEAM. ED: THE SBA DIRECTOR SAID THE SAME THING, HER INTERPRETATIONS OBVIOUSLY HER DOMAIN IS THIS IS WRITTEN WITH A VIEW TO HOW IT IMPACTS MAIN STREET. COMPANIES ALL SIZES AS THEY COME TO GRIPS WITH USING AI. WHY IS THAT IMPORTANT? IRENE: IT’S EASY TO OVERLOOK THOSE HOBBYISTS. PART OF WHAT OUR PLATFORM WANTS TO ENCOURAGE IS THE PERSON WHO HAS BEEN TOYING WITH AI IN THEIR ROOMS. WE TALKED YESTERDAY AND TODAY ABOUT TRAINING AND DEPLOYMENT. WE WANT EVERYBODY TO BE ABLE TO ENSURE THEY CAN CONTRIBUTE TO AI BECAUSE EVERYBODY IS AFFECTED BY IT. >> I KNOW THAT SOMETHING AND YOU THINK ABOUT THE SOCIETAL IMPLICATIONS. THERE WAS TALK ABOUT HOW THEY SUPPORT THE LABOR MARKET. I’M INTERESTED IN THE NOTE ON BIAS OR POTENTIAL BIAS OR WHAT THEY ULTIMATELY SEE AS BIAS IN SOME OF THE LARGE LANGUAGE MODELS AND HOW THAT’S ADOPTED BY THE FEDERAL GOVERNMENT IN THE U.S.. HOW HAVE YOU INTERPRETED THAT? IRENE: SO THE AI ECOSYSTEM IS REALLY A THRIVING AREA FOR RESEARCH, FOR DEVELOPMENT, I’M SORRY AM UNABLE TO HEAR SOME OF THAT QUESTION IF YOU CAN REPEAT THAT. CAROLINE: CAN YOU HEAR ME NOW? ED YOU JUMP IN. ED: IT’S A TECHNOLOGY SHOW WERE SOMETIMES THE TECHNOLOGY FAILS US A LITTLE. YOU HEARD LISA SUE TALK ABOUT SCIENCE, THE APPLICATION OF AI, SHE MET IN INFRASTRUCTURE BUT IN ENERGY FOR EXAMPLE ONE OF THOSE FROM GECKO HEAVY EMPHASIS ON HOW AI CAN HELP THE ENERGY INDUSTRY BOOST ITS OUTPUT, YOU ARE ALSO INTERESTED IN THE SCIENCE APPLICATION, YOU CAME AWAY READING THE DOCUMENT AND THE PRESIDENT’S SPEECH FEELING WHAT ABOUT THAT? IRENE: THE ENERGY WAS HIGH YESTERDAY AND IT’S ONLY GOING TO GET HIGHER. WE ARE SEEING PEOPLE USING SMALLER MODELS TO ENHANCE THEIR WORK STREAM. SOME OF THE MOST DOWNLOADED MODELS ARE ENERGY EFFICIENT AS WE SCALE UP OUR INFRASTRUCTURE PEOPLE NEED TO RELY ON WHAT’S EASY TO DEPLOY. ED: THERE IS A HEAVY EMPHASIS ON EXPORTING THE AMERICAN TECHNOLOGY, EXPLOIT DESK EXPORTING AMERICAN AI. THAT’S A BIT OF THE OPEN-SOURCE DEBATE I WANT TO UNDERSTAND FROM YOU BECAUSE AT THE SAME TIME THIS ADMINISTRATION FRAMES THIS AS COMPETITION AMERICA WANTS TO LEAD WITH ITS COMMERCIAL LEADERSHIP OF AI AGAINST CHINA IN PARTICULAR AS MUCH AS HE WANTS TO FOSTER AN OPEN SOURCE ECOSYSTEM BOOK — ARE BOTH ACHIEVABLE? >> WHAT ARE THE BIGGEST TAKEAWAYS FROM THIS AUCTION PLAN IS THIS U.S. TECH STOCK. SO THERE IS NOT JUST THIS RACE FOR THE FRONTIER, THERE REALLY IS THIS RACE FOR THE GLOBAL ECOSYSTEM, A HUGE PART OF OPEN SOURCE IS WHAT PEOPLE ARE ABLE TO LOCALLY DEPLOY AND THIS IS THE EMPHASIS ON THE AMERICAN TECH, WE NEED THE U.S. TO DEVELOP THESE OPEN WEIGHT AND LIGHTWEIGHT MODELS. ED: YOU WERE IN THE ROOM AND SOME PEOPLE WERE TAKING A BACK A LITTLE BIT ABOUT WHO WAS IN THE ROOM. POLICYMAKERS, LEADERS IN YOUR INDUSTRY. WHAT WAS IT THAT WAS MOST DISCUSSED BETWEEN THE PANELS. WHAT DID YOU EXCHANGE VIEWS ON WITH YOUR PEERS? IRENE: IT WAS A HUGE VARIETY OF PEOPLE IN THE ROOM AND WHO NEEDS TO BE PART OF THIS AI CONVERSATION. SOME OF THE CONVERSATIONS WERE ABOUT THE NEXT AREAS THAT WE ARE EXCITED ABOUT, LOOKING FORWARD TO THE NEXT GENERATION OF MANUFACTURING TOWARDS ROBOTICS AND WHAT WE CAN BE DOING TO MAKE SURE AI IS BEING DEPLOYED IN EVERY SECTOR IN A MEANINGFUL WAY. CAROLINE: HEAD OF AI RESEARCH AND POLICY AT HUGGY FACE. PRESIDENT TRUMP UNVEILS HIS AI ROADMAP HE’S BEEN TALKING ABOUT. JOINING US WILL BE THE WHITE HOUSE SENIOR POLICY ADVISOR FOR AI. THIS IS BLOOMBERG TECH. ♪ >> I THINK THE AI ACTION PLAN IS EXTREMELY WELL DONE. >> PRESIDENT TRUMP NO SMALL BUSINESS IS BIG BUSINESS. >> IT AMOUNTS TO SHOCK THERAPY FOR AMERICAN COMPETITIVENESS IN THE AI INDUSTRY. >> IT’S VERY MUCH ALL ABOUT ENERGY, THE FEAR RIGHT NOW BEFORE THIS ACTION PLAN WAS WE WERE NOT DOING ENOUGH SO WHAT’S EXCITING IS THE ACTION PLAN ADDRESSES THIS HAD ON WITH A CALL TO ARMS. >> THE THIRD PILLAR AROUND MAKING SURE WE ARE EXPEDITING THE EXPORT OF OUR AMERICAN AI STACK THAT’S REALLY CORE TO OUR MISSION. >> WHAT I LIKE ABOUT THE AI ACTION PLAN IS I BELIEVE IT IS QUITE ACTIONABLE. ED: THAT’S WHAT A FEW OF THE AI LEADERS HAD TO SAY YESTERDAY IN WASHINGTON ABOUT PRESIDENT TRUMP’S AI ACTION PLAN. HERE WITH MORE ON THE ADMINISTRATION’S AI ROLLOUT IS ONE OF THE PEOPLE WHO HELPED WRITE THAT POLICY AND THAT DOCUMENT. WHITE HOUSE SENIOR POLICY ADVISOR FOR AI. THERE WAS A POINT TOWARDS THE END OF THAT SEQUENCE OF COMMENTS ABOUT EXPORTING THE AMERICAN TECHNOLOGY STACK. EXPORTING CHIPS IN PARTICULAR, YOUR COLLEAGUES IN THE CABINET TALKED ABOUT THIS AT LENGTH ON THE STAGE. ARE WE GOING TO GET A SET OF RULES AND HOW WILL WE DECIDE THE VOLUME AND SPECIFICITY OF THE TYPES OF CHIPS WE CAN SELL PARTICULARLY TO CHINA? SRIRAM: THANK YOU FOR HAVING ME HERE. I THINK WE ARE GOING TO WORK ON THAT, IF YOU LOOK AT THE EXECUTIVE ORDER PRESIDENT TRUMP SIGNED ABOUT AMERICA SETTING THE STANDARD WHAT YOU WILL SEE IS WE WILL WORK CLOSELY WITH OUR FRIENDS IN COMMERCE ESPECIALLY IN BIAS AND WHAT WE FIGURE OUT IS WHAT THAT POLICY WILL BE. PRESIDENT TRUMP WAS VERY CLEAR, WE NEED AMERICA TO SET THE STANDARD FOR HOW AI IS BEING USED GLOBALLY FROM CHIPS TO MODELS TO EVERY PART OF THE STACK AND WHAT YOU’RE SEEING OVER THE LAST SIX MONTHS WITH HUAWEI ON THE CHIPS ASIDE OR MODELS LIKE DEEPSEEK, WE HAVE COMPETITION AND YESTERDAY’S PLANS IT’S ALREADY CLEAR THAT WE NEED TO BE MAKING SURE GLOBAL STANDARDS EXIST WORLDWIDE. ED: I’VE READ THROUGH 23 ON THE VERSION I HAD BUT WE CAN AGREE TO DISAGREE. THERE’S A HEAVY EMPHASIS ON D AND PERMITTING. THAT WE GET FROM THE ON SHORING COMPONENT AND FOR EXPORTING THE AMERICAN AI WHAT ACTION WILL BE TAKEN TO OPEN THAT UP BE IT ON THE SOFTWARE AND ARE THE HARDWARE END OF THE STACK? SRIRAM: PRESIDENT TRUMP SIGNED THREE EXECUTIVE ORDERS YESTERDAY AND ONE OF THEM DEALS EXACTLY WITH THIS AND WHAT WE WILL DO IS WORK WITH INDUSTRY TO COME UP WITH A GOLD STANDARD FOR WHAT THE STACK SHOULD BE AND THERE WILL BE A PROCESS AND HOW WE FIGURE THIS OUT AND THEN THEY WILL TRY TO MAKE SURE THAT WE WORK WITH OUR PARTNERS AND OUR ALLIED COUNTRIES THAT THEY ARE USING OUR STACK INSTEAD OF THE COMPETITIONS. CAROLINE: LOOKING AT THE CAPITALIZATION OF NVIDIA AND WONDER DOES IT NEED ANY MORE HELP? HOW MUCH MORE SUPPORT DOZEN AND OR NVIDIA NEED? SRIRAM: WELL THE WAY WE LOOK AT IT IS WE WANT AMERICA TO WIN, WE WANT AMERICAN GPU’S END AMERICAN MODELS TO BE USED AND NVIDIA AND AND HAPPEN TO BE GREAT AMERICAN COMPANIES ALONG WITH MANY OTHERS. SO OUR JOB IS TO CREATE THE PLAYING FIELD WHERE JENSEN OR I SAW DR. LISA SOO CAN SELL THEIR PRODUCTS WORLDWIDE. CAROLINE: LET’S TALK ABOUT THAT TEAM BECAUSE THERE WERE SOME ABSENCES. HE WOULD THINK INTEL WOULD BE A COMPANY THAT WOULD BE INTEGRAL TO MANUFACTURING IN THE U.S.. TSMC FROM ABROAD PUTTING MONEY TO WORK IN THE UNITED STATES AS WELL. WHAT DO WE INTERPRET BY THOSE WHO WEREN’T IN THE ROOM? SRIRAM: I’M NOT SURE I WOULD READ TOO MUCH INTO THAT. IF YOU LOOK AT YESTERDAY’S EVENT IT WAS AMAZINGLY WELL ATTENDED. WHAT INDUSTRY LEADERS FROM ACROSS THE STACK, TO ENERGY, TWO AI MODELS, TO AI APPLICATIONS AND AS YOU SAID, WE REALLY WANT AMERICANS IN THE INDUSTRY TO WIN. AND YOU SEE THEM BEING A TRULY WELL REPRESENTED. ED: YOU ADVISE THE PRESIDENT AND COLLECTIVELY LOOK TO POLICY. AS A MAMA WE HAD TO ADDRESS WHERE THE PRESIDENT AFTER MAKING PEOPLE STAND UP SAID HE LOOKED AT BREAKING UP NVIDIA BUT THEN CAME TO UNDERSTAND HOW CRUCIAL THEY WERE TO THE AMERICAN TECHNOLOGY STACK AND HIS AIDEES SAID TO HIM JENSEN IS GREAT. TO DO EVER DISCUSS WITH THE PRESIDENT THE IDEA OF BREAKING UP NVIDIA AND WHY THAT WAS INCLUDED IN HIS SPEECH? SRIRAM: I WASN’T AT THE MEETING WITH THE PRESIDENT I THINK WHAT HE WAS REFERRING TO IS NVIDIA HAS DONE A PHENOMENAL JOB IN BUILDING PRODUCTS AND APPLICATIONS AND GPU’S AND THAT THEY ARE SO AHEAD OF THE CURVE. SO IF YOU LISTEN TO THE SECOND PART OF WHAT THE PRESIDENT SAID HE TALKED ABOUT HOW IT WILL TAKE SEVERAL YEARS FOR PEOPLE TO CATCH UP WITH THEM AND I THINK THAT’S ONE OF THE PIECES THAT PUT AMERICA IN THIS POSITION WHEN IT COMES TO THE GP USE EVERYBODY IN THE WORLD WANTS TO GET ACCESS TO. CAROLINE: WE APPRECIATE THE CLARITY. OPEN SOURCE, A VERY PROMINENT AND HIGH UP IN THE ACTION PLAN. WHY? THAT SOME IN YOUR FOCUSED ON AS WELL. SRIRAM: THIS IS AN ISSUE NEAR AND DEAR TO MY HEART WHICH I THINK THE BIDEN ADMINISTRATION GOT TOTALLY WRONG WHERE THEY TRIED TO BASICALLY SCARE PEOPLE ABOUT OPEN SOURCE. WE BELIEVE OPEN-SOURCE IS AN INTEGRAL PART OF INNOVATION, HOW RESEARCH IS DONE HOW YOU GET LITTLE TECH TO INNOVATE QUICKLY AND BE ON A LEVEL PLAYING FIELD AND WE THINK AMERICA SHOULD WIN. THE FIRST DAY ON THIS JOB WE HAD DEEPSEEK COME OUT AND REALLY SEND A SIGNAL THAT AMERICA WASN’T LEADING AT THE TIME AND WE BELIEVE IN THE ACTION PLAN WE SENT A VERY STRONG SIGNAL OPEN-SOURCE AMERICA WILL HAVE A LEADERSHIP POSITION. CAROLINE: ANOTHER THING NEAR AND DEAR TO YOUR PART IS PRO WRESTLING. IT FEELS A CAREER IN A WRESTLING MATCH BETWEEN CHINA AND THE U.S.. I’M INTERESTED HOW YOU NAVIGATE THE RULES OF THAT? CHINA GIVES US RARE EARTH METAL ACCESS IN RETURN WE GIVE THEM SOME H 20’S. HOW DOES NVIDIA NAVIGATE IF CHINA CHOKES THAT? WILL THEY HAVE TO BE LIMITED WITH H 20? HOW DO THEY GET CERTAINTY. SRIRAM: FIRST OF ALL IF YOU’RE TALKING PRO WRESTLING, WE ARE THE BABYFACE AND WILL ULTIMATELY GO OVER FOR ALL OF YOU PRO WRESTLING FANS. THE WAY WE THINK ABOUT IT IS WE WANT THE AMERICAN TECH STOCK TO WIN. ONE OF THE METRICS I TALK ABOUT IS EVERY TOKEN WORLDWIDE WE WANTED TO BE ON AMERICAN GPU OR USING AN AMERICAN MODEL. AND WHEN IT COMES TO THE H 20, THE WAY WE THINK ABOUT IT IS WE WOULD MUCH RATHER HAVE NVIDIA OR AMD BE THE GPU OF CHOICE RATHER THAN USING HUAWEI OR SOMEBODY ELSE’S. CAROLINE: I LOVE IT. GREAT HAVING TALK TO YOU. WHITE HOUSE SENIOR POLICY ADVISOR FOR AI. COMING UP, CAN INTEL PRODUCED RESULTS IN THEIR LATEST EARNINGS. THIS IS BLOOMBERG TECH. ♪ >> BACK TO EARNINGS AND LOOKING AFTER THE CLOSING BELL IT’S INTEL’S TURN REPORTING SECOND-QUARTER EARNINGS AND GIVING ITS NEW LEADERSHIP A CHANCE TO UPDATE INVESTORS ON THE SUPPOSE IT TURNAROUND EFFORTS. I WANT TO REFLECT FOR A MOMENT ON THE NUMBERS WE ARE EXPECTING. I KNOW WE HAVE A CHART TO SHOW IT ALL, THES E ARE WOEFUL. ONE SENT FOR EARNINGS-PER-SHARE.>> THAT REVENUE NUMBER BELOW THAT IS PROBABLY GOING TO BE THE SECOND OR ARGUABLY THE WORST TOTAL THEY’VE HAD IN MORE THAN A DECADE WHERE THEY’RE CLEARLY AT THE BOTTOM OR PERHAPS ALONG THE BOTTOM OF THE MOMENT AND REALLY IT IS DIFFICULT TO DESCRIBE HOW FAR THINGS HAVE DECLINED IN TERMS OF WHERE THIS COMPANY USED TO BE. >> WHERE IT DIALS UP IS THIS IS REFLECTING SOME POLLING AHEAD OF TARIFF IMPLICATIONS, PEOPLE RUSHED TO DO ORDERS. WHAT DO THEY NEED TO SINGLE — SIGNAL HERE? >> EVEN IF THEY HAVE A GOOD QUARTER THE LINGERING CONCERN WILL BE IT’S NOT GOING TO CONTINUE BECAUSE OF WHAT’S GOING ON IN THE MARKET RIGHT NOW. IT IS ALL ABOUT THE DIAGNOSIS AND THE PRESCRIPTION, WHAT IS THIS COMPANY GOING TO DO GOING FORWARD TO CHANGE THIS MOMENTUM, TO SOLVE THE ISSUES THEY HAVE. THAT’S WHAT INVESTORS WANT TO HEAR FROM HIM. CAROLINE: HOW MUCH MORE CAN HE CUT? THAT’S BEEN THE INITIAL PRESCRIPTION, JUST GET MANAGEMENT SPEAKING MORE CLEARLY TO THOSE UNDERNEATH TO BE ABLE TO BE MORE EFFICIENT BUT THEY CAN ONLY PULL THAT STRING SO FAR. >> THAT’S A VERY GOOD POINT. CUTTING COSTS HELPS AND WE NEED A CONTROL SHIFT IN THE COMPANY TO BE MORE LEAN AND ADAPTIVE IN THIS SITUATION BRING THE FUNDAMENTAL IS YOU CAN CUT YOUR WAY TO GROWTH. YOU CAN ONLY GROW BY HAVING BETTER PRODUCTS AND MORE CUSTOMERS. AND WE DON’T KNOW HOW THEY’RE GOING TO DO THAT AND THAT’S WHAT PEOPLE WANT TO HEAR. CAROLINE: JUST THINKING OF WHAT THE AI ACTION PLAN MEANS FOR THEM, THEY WERE ABSENT YESTERDAY. ARE WE ANTICIPATING ANY SORT OF FEDERAL HELP FOR THEM TO BUILD THEIR MANUFACTURING UP? IAN: WHAT THEY HAVE SAID IS THE PLAN WE HAD ISN’T CAN A WORK WE CAN CATCH NVIDIA WITH OUR CURRENT PRODUCTS SO WE WILL HAVE TO COME UP WITH A DIFFERENT PLAN AS TO HOW WE CAN CASH IN ON THIS MASSIVE OPPORTUNITY NVIDIA IS GRASPING WITH BOTH HANDS AND THE ANSWER WAS WE WILL THINK ABOUT IT AND COME BACK TO YOU. CAROLINE: IAN KING YOU WILL BE ACROSS THOSE EARNINGS LATER. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECH. DO NOT FORGET TO CHECK OUT OUR PODCAST ON THE TERMINAL OR ONLINE. THIS IS BLOOMBERG.Stream Schedule:US BTV+
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