Big Tech Probe, Intel Plunges | Bloomberg Technology
SIR: -- ANNOUNCER: FROM SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY, WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED: AND I AM ALSO IN THE BIG APPLE. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: INTEL PLUNGES AFTER DISAPPOINTING INVESTORS WITH ITS FORECAST. THE RESULTS. ED: ALPHABET, AMAZON, AND MICROSOFT
FACING FTC PROBES ABOUT PARTNERSHIPS WITH AI COMPANIES. CAROLINE: SALESFORCE ADDING TO A BRUTAL STRING OF TECH LAYOFFS IN 2020 FOUR, ANNOUNCING IT IS SLASHING 700 WORKERS. WE DISCUSS THAT AND SO MUCH MORE THROUGHOUT THE HOUR. THE MARKETS ARE TREADING WATER. WE HAVE HAD A MIXED BAG IN TERMS OF OVERALL MACRO PICTURE. INFLATION DIALING BACK. RETAIL STILL GOING STRONG WHEN IT COMES TO THE CONSUMER. EACH WAY COULD THE FEDERAL
RESERVE GO? WE TALK ABOUT A 10% ON THE NASDAQ. THE S&P 500, SIX STREET DAYS -- SIX STRAIGHT DAYS OF GAINS. YIELDS HIGHER ON THE FRONT END. PEOPLE ARE PRICING IN PERHAPS RATE CUTS COMING FROM THE FEDERAL RESERVE AT A SLOWER PACE. GEOPOLITICS IN PLAY. CONCERNS ABOUT MEN TECH IN CHINA. THAT SENT SHOCKWAVES INTO THE CHINESE TRADE. WE ARE SAYING IT OFF 0.4% FOR
SOME OF THE KETEK NAMES TRADED IN THE U.S. BITCOIN HEADED A LITTLE BIT HIGHER. JEAN SEIFERT IS GOING TO BE JOINING US A LITTLE BIT LATER. MORE BROADLY, WE ARE MANAGING TO POP UP A LITTLE BIT. MAYBE THAT IS ABOUT THE OUTFLOWS EASING A LITTLE BIT. WHAT IS THE MICRO? ED: THERE IS A SINGLE POINT OF FOCUS IN TECH RIGHT NOW. THAT IS INTEL, THE STOCK DOWN
MORE THAN 10%. IF IT CLOSES DOWN BEYOND 10%, IT WILL BE THE BIGGEST DROP SINCE THE END OF 2021. WHAT IS GOING ON? OUTLOOK HAS US WORRIED, PARTICULARLY ABOUT HOW INTEL IS FARING IN THE MARKET FOR CHIPS THAT GO INTO DATA CENTERS. MEMBER, THEY ARE ALSO GROWING THIS FLEDGLING FOUNDRY BUSINESS. THERE IS A LACK OF DETAIL. WE DON'T KNOW WHO THE CUSTOMERS ARE. THERE ALSO DOES NOT SEEM TO BE ENOUGH DOLLARS COMMITTED TO THAT BUSINESS. WE ARE GOING TO BE SPEAKING
LATER IN THE HOUR WITH THE CEO OF INTEL. IF YOU ARE ON THE TERMINAL, CONTACT US. CONTACT US ON SOCIAL MEDIA WITH QUESTIONS. WHERE ARE WE IN THIS TURNAROUND PLAN THAT PAT GELSINGER HAS PUT IN FRONT OF INVESTORS FOR A NUMBER OF QUARTERS? CAROLINE: A LOT OF WHAT HE HAS BEEN HOPING FOR IS THE WINDS OF POSITIVITY COMING FROM AI INVESTMENT, BUT LET'S TALK ABOUT AI FROM A REGULATORY PERSPECTIVE.
THE FTC HAS LAUNCHED AN INQUIRY ON INVESTMENTS AND PARTNERSHIPS WITH COMPANIES LIKE OPENAI. THIS IS PART OF A STUDY ON HOW ARTIFICIAL INTELLIGENCE IS IMPACTING COMPETITION IN THE TECH INDUSTRY. JACKIE DOUGLAS, OUR AI EXPERT IN WASHINGTON EXPERT, JOINS US NOW. THE FTC IS REALLY TRYING TO GARNER WHETHER OR NOT THESE ARE MENDE DEALS BY A BACKDOOR. -- ARE M&A DEALS BY A BACKDOOR. JACKIE:
THESE DEALS MAY BE CREATIVE IN THAT THEY ARE NOT TRADITIONAL MERGERS AND ACQUISITIONS, THE FTC IS AWARE OF THAT. THE REASON THEY ARE ON THE RADAR IS BECAUSE IT IS A MASSIVE AMOUNT OF MONEY. IT IS $19 BILLION COLLECTIVELY BETWEEN THE $13 BILLION MICROSOFT COMMITTED TO OPENAI, THE $2 BILLION ANTHROPIC RAKED IN FROM ALPHABET AND THE $4 BILLION FROM AMAZON. THESE ARE ENORMOUS STAKES. THE FTC WANTS TO UNDERSTAND, SHOULD THEY BE SUBJECT TO THE SAME KINDS OF REGULATORY RULES? THEY ARE NOT THE ONLY REGULATORY'S -- REGULATORS THAT HAVE THESE COMPANIES ON THEIR RADAR.
YOU HAD THE EUROPEAN UNION STARTING TO TAKE A LOOK AT WHETHER THEY SHOULD BE LOOKED AT LIKE A MERGER WOULD EARLIER THIS MONTH. ED: THE FTC HAS THE WHO'S WHO OF MEGA CAP TECH IN THEIR SITES, AND BUILDING LOM'S. I WANT TO GO TO MICROSOFT SPECIFICALLY BECAUSE OF BEING THE WORLD'S MOST VALUABLE COMPANY AS IT STANDS, BUT ALSO THE MICROSOFT OPENAI PROJECT IS SOMETHING WE HAVE DONE A LOT OF REPORTING ON. WHAT HAS MIKE OR SOFT'S RESPONSE -- MICROSOFT' S RESPONSE BEEN? JACKIE: THEY HAVE DEFENDED THE PARTNERSHIP AND SAID THE U.S. HAS BEEN IN THE LEAD ON AI BECAUSE OF THESE PARTNERSHIPS. THEY LOOK FORWARD TO FINDING
WHAT THE FTC NEEDS TO ASSESS THE NATURE OF THIS RELATIONSHIP. YOU ARE ABSOLUTELY RIGHT. MICROSOFT HERE IS OBVIOUSLY MORE AT RISK THAN SOME OF THESE OTHER COMPANIES. MICRA SOFT HAS OVERHAULED ITS ENTIRE PRODUCT LINE TO INTEGRATE OPENAI'S OPENAI TECHNOLOGY AND LARGE LINKAGE MODEL INTO THE MOST UBIQUITOUS TOOLS AND ITS MOST PROFITABLE TOOLS IT HAS. WHETHER THE FTC DECIDES THERE IS NOTHING TO SEE HERE, THAT THESE PARTNERSHIPS ARE VALID, THAT IS ONE OUTCOME. THE OTHER -- UNTANGLING THESE PARTNERSHIPS IN SOME WAY.
THIS IS WHERE MICROSOFT IS ARGUABLY MORE EXPOSED. ED: THANK YOU. LET'S CONTINUE THE CONVERSATION WITH THE FOUNDER AND VICE CHAIR OF THE COMPETITION RESEARCH POLICY NETWORK AT THE CENTER FOR ECONOMIC POLICY RESEARCH IN LONDON. SHE IS A SPECIALIST IN ANTITRUST AND HAS LOOKED AT LANDMARK COMPETITION COMPANIES ON BEHALF OF MICROSOFT, APPLE, AMAZON, AND MANY OTHERS. THE TIMING IS REALLY
INTERESTING. THERE HAS BEEN A LARGE BODY OF REPORTING, MOST OF IT FROM BLOOMBERG, ABOUT REGULATORS AROUND THE WORLD LOOKING AT THE RELATIONSHIP BETWEEN MEGA CAP TECH AND THE NEW PLAYERS IN AI. WHY DO YOU THINK THE FTC HAS ACTED NOW? >> IT IS A PLEASURE TO BE HERE. THANK YOU FOR HAVING ME. THE REASON THIS ANNOUNCEMENT BY THE FTC IS SIGNIFICANT IS THAT IT IS THE FIRST OF THE REGULATORS WHO IS ACTUALLY DOING A WIDE-RANGING TYPE OF INVESTIGATION OF THESE PARTNERSHIPS. AS THE YOUR REPORTER MENTIONED,
THE U.K. REGULATOR AND THE EUROPEAN COMMISSIONER ARE ALREADY LOOKING INTO THIS THE SPECIFIC PARTNERSHIP BETWEEN TECH AND I I -- AI. WHAT IS BEHIND IT AND IS REALLY COMMON TO ALL OF THESE REGULATORS -- I CERTAINLY WOULD DESCRIBE THEM AS A TRIAD OF FAIRLY PROGRESSIVE REGULATORS, THE EUROPEAN COMMISSION, THE U.K. REGULATOR, AND THE U.S. AGENCIES. WHAT IS COMMON BETWEEN THEM IS AN ANXIETY THAT IS ACTUALLY -- WE DON'T WANT TO SEE THE SAME PLAYBOOK UNFOLD AGAIN. WHAT HAS HAPPENED IN THE PAST IS THAT REGULATORS HAVE BEEN VERY SLOW IN INTERVENING. FOR THE FIRST DECADE AND THE SECOND DECADE, REALLY THERE HAS BEEN A RELUCTANCE TO INTERVENE, BECAUSE THERE IS A SENSE THAT ANTITRUST IS A PROBLEM WITH LOW INNOVATION SECTORS -- ANALOG RATHER THAN DIGITAL -- AND THINGS WOULD TAKE CARE OF THEMSELVES. ANTITRUST INTERVENTION IS LATE.
THIS IS WHAT IS POWERING THE ANXIETY. WE CANNOT LET THIS PLAYBOOK UNFOLD YET AGAIN. WE NEED TO BE DIGITAL IT. WE NEED TO BE SEEN TO BE DOING
SOMETHING. CAROLINE: WHAT ABOUT THE ANXIETY? IS IT A REALITY, THAT ANXIETY, THAT BASICALLY THESE PARTNERSHIPS ARE MORE THAN PARTNERSHIPS -- THEY ARE INDEED M&A, OUR CONTROL? CRISTINA: ABSOLUTELY. IT EXTENDS TO THIS BECAUSE THE CONCERN TO THE AGENCIES IS THAT BOARDROOMS HAVE INTERNALIZED THAT THE CLIMATE OF ENFORCEMENT HAS BECOME MORE HOSTILE TO DEALS.
YOU THINK ABOUT MICROSOFT'S ACQUISITIONS IN TWO YEARS. THERE IS A GENERAL AWARENESS THAT DOING DEALS IS MUCH MORE DIFFICULT NOW. AND THIS IS CIRCUMVENTING MERGER CONTROL BY DRESSING UP THESE RELATIONSHIPS AS PARTNERSHIPS. SO THIS IS CERTAINLY THE SECOND LEG OF THE ANXIETY. WE HAVE BEEN TOO LATE, WE HAVE
NOT BOUGHT ENOUGH, AND NOW WE ARE EXPOSED TO THE RISK THAT THESE COMPANIES ARE DOING DEALS BY THE BACK DOOR. THAT IS WHY. ED: CAROLINE AND I HAVE COVERED SO MANY OF THESE FTC INQUIRIES ON THIS PROGRAM. BLOOMBERG TECHNOLOGY -- ALL OF THEM SLIGHTLY DIFFERENT. THE THING THEY SHARE IN COMMON -- TO WHOSE BENEFIT? PEOPLE ARE WORRIED ABOUT AI, BUT THERE IS ALSO A BROAD BODY OF PEOPLE WHO SAY THIS CAN HELP HUMANKIND.
IT'S VERY EXPENSIVE TO ACHIEVE. THOSE NAMES THAT ARE THE SUBJECT OF THIS INQUIRY ARE THOSE WITH THE CAPITAL TO DRIVE THE PROGRESS. AS THE FTC PUT ANY WEIGHT ON THAT LATTER ARGUMENT? CRISTINA: OF COURSE. AND I THINK IN THE ANNOUNCEMENT YESTERDAY, THEY EMPHASIZE THE BEGINNING THAT THESE POINTS ARE WELL TAKEN.
I THINK HUMANITY, TO THE EXTENT POSSIBLE, WANTS TO BENEFIT FROM THIS. WE ARE ALL AWARE THAT THERE ARE MASSIVE INVESTMENTS THAT WANT TO BE PUT INTO THIS, JUST WHY THESE PLAYERS THAT ARE AT THE FOREFRONT OF DEVELOPMENT. THAT SAID, WE HAVE RECENT HISTORY, WHICH IS A HISTORY OF ENGAGING WITH THESE QUESTIONS. ONE DOES NOT WANT TO PREJUDGE THE OUTCOME. ONE NEEDS TO BE VIGILANT BECAUSE WE HAVE SPENT THE LAST 10 YEARS, CERTAINLY IN EUROPE, TRYING TO EXPOSE THE CONDUCT. HOW MANY YEARS WOULD IT TAKE BEFORE ANYTHING WILL MOVE, BEFORE ANYTHING COMES TO A COURT? CAROLINE: TO THAT POINT, WHEN YOU LOOK AT WHAT IS HAPPENING IN EUROPE, THEY ARE ACTUALLY TAKING REGULATORY ACTION THAT FORCES A CHANGE.
WILL WE SEE COMPANIES FRONT RUN THIS? CRISTINA: IN EUROPE, WHAT YOU HAVE SEEN IS BECAUSE ANTITRUST HAS FAILED SPECTACULARLY SO FAR -- WE HAVE BEEN AT IT FOR 15 YEARS. IT HAS NOT MOVED THE DIAL. THERE HAS NOT BEEN A SINGLE ANTITRUST DECISION ON GOOGLE AND OTHERS THAT HAS ACTUALLY CHANGE THE SITUATION. WE PIVOTED TO REGULATION. IT REMAINS TO BE SEEN WHETHER THIS IS GOING TO MOVE THE DIAL ITSELF. THESE ARE EXPERIMENTS, FRANKLY. THE SENSE IS THEREFORE THAT IF YOU TRY TO CORRECT THE ISSUE, WHEN THE MONOPOLIES ARE ESTABLISHED, WHEN POWER IS ENTRENCHED, YOU STUMBLE. YOU ARE NOT GOING TO BE ABLE TO EFFECTIVELY UNDO THAT POWER. AND SO THE NOTION OF LOOKING AT
IT EARLY AND LOOKING AT THE NATURE OF THIS PARTNERSHIP -- WHAT ARE THE POTENTIAL ISSUES? THINK ABOUT THIS AS A SUPPLY CHAIN. NEVER MIND THAT THERE IS AT THE BOTTOM A LOT OF COMPETITION. THE ISSUE IS THE POWER AT THE LEVEL OF THE INPUTS, THE POWER AT THE LEVEL OF TECH MOGULS. IF THAT POWER IS VERY CONCENTRATED, THE QUESTION REGULATORS NEED TO ASK IS, HOW WILL THAT INPUT, WHICH IS ESSENTIAL TO ALL OF THESE PROBLEMS, BE EFFECTIVELY SUPPLIED. WILL IT BE SUPPLIED IN
CONDITIONS THAT ARE ADVANTAGEOUS , THAT EFFECTIVELY REMOVE THE BURDEN TO OTHERS? AT THE PRODUCT LEVEL, THERE IS THOUSANDS OF PEOPLE IMPLEMENT IN AI APPLICATIONS. IF THERE IS ONLY 1, 2, OR THREE SUPPLIERS OF THIS, THE QUESTION BECOMES -- WILL WE HAVE ADVANCE NOTICE OF THIS DEVELOPMENT? WILL THEY EFFECTIVELY FAVOR THE DEVELOPMENT OF THE ECONOMY IN WAYS THAT SHOOT ME QUESTION -- THAT SUIT? CAROLINE: HAPPY WEEKEND. MEANWHILE, STICKING ON THE THEME OF AI, SAM ALTMAN IS VISITING LEADERS IN SOUTH KOREA'S SEMICONDUCTOR INDUSTRY. ALTMAN HAS ARRIVED IN SEOUL LAST NIGHT AND IS TOURING SAMSUNG FABRICATION PLANTS TODAY. HE IS ALSO SCHEDULED TO MEET THE RIVAL OF -- TO MEET RIVAL SK H YNIX. ED: JOB CUTS KEEP COMING INTACT,
THIS TIME AT SALESFORCE, WHICH IS LAYING OFF 700 WORKERS. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: IN ANOTHER EFFORT TO CUT COSTS, SALESFORCE IS THE LATEST TECH COMPANY RESORTING TO LAYOFFS.
BRODY, SALESFORCE WAS ALREADY NUMBERING STAFF. THIS TIME, IT IS A SMALLER PERCENTAGE, BUT 700 IS NOTHING TO BE SNIFFED AT. BRODY: IT IS TEMPTING TO SAY THAT A YEAR AGO THERE WAS 7000 PEOPLE CUT AND NOW IT IS 700, SO WE DON'T CARE SO MUCH. STILL, WHAT IT SHOWS TO US IS THAT THE TECH INDUSTRY IS STILL FOCUSED ON CUTTING COSTS, AND THIS MAY BECOME A MORE REGULAR PART OF THE YEAR, RIGHT? WE ARE GOING BACK TO 1950. WE SAW THIS WITH MICROSOFT, AMAZON, GOOGLE. COMPANY'S THAT MADE BID CUTS
LAST YEAR AND ARE DOING WELL FINANCIALLY STILL SEE IT IN THEIR INTEREST TO TRIM A COUPLE PERCENTAGE POINTS PERIODICALLY. I EXPECT THIS TO BE A TREND. ED: THE POINTED DIFFERENCE FROM THIS TIME LAST YEAR IS THE SIZE OF THE CUTS. IF YOU GO ON ANY WEBSITE OF THOSE THAT HAVE CUT -- SALESFORCE, MICROSOFT -- THEY'RE ALSO HIRING, AND WHERE THEY ARE HIRING IS CLEAR AS DAY, BRODY. BRODY: IT IS TWO LETTERS WE HAVE BEEN HEARING EVERY DAY -- AI. SALESFORCE HAS TOLD ME THAT THEY ARE REALLY HIRING FOR ENGINEERING ROLES AND FOR THOSE WHO GO TO MARKET FOR THEIR AI PRODUCTS. I THINK A LOT OF COMPANIES,
SALESFORCE MORE THAN MOST, REALLY FOCUSED ON PEERING BACK THESE TRADITIONAL SALES AND MARKETING ROLES. NOW, THEY ARE KIND OF INVESTING IN WHAT IS GOING TO BRING THEM FURTHER. UNFORTUNATELY FOR SOME WORKERS, IT IS PROBABLY HIGHER THAN IT IS TO RETRAIN SOME OF YOUR PEOPLE. ED: GOODBYE, MARKETING. HELLO, COMPUTER NERDS. WE SIT DOWN WITH INTEL CEO PAT GELSINGER AMID COMPANY RESULTS THAT OFFERED AN DISAPPOINTING FORECAST. THE STOCK IS DOWN SIGNIFICANTLY AS A RESULT. THAT IS COMING UP NEXT. ♪
ED: WELCOME TO OUR BLOOMBERG TELEVISION AND RADIO AUDIENCES WORLDWIDE. THE FOCUS -- INTEL, AND CHIPMAKER EARNINGS. THE FORECAST THAT MAKES THE MARKET NERVOUS -- THE TURNAROUND PLAN FOR INTEL, WORRY ABOUT ITS DATA CENTER BUSINESS AND FLEDGLING FOUNDRY BUSINESS.
I'M DELIGHTED TO SAY WE ARE JOINED BY PAT GELSINGER, INTEL CEO. THE STOCK IS DOWN MORE THAN 10%. WHAT IS IT THAT THE MARKET IS NOT UNDERSTANDING HERE, FOR INTEL? PAT: THANKS, AND ALWAYS A PLEASURE TO BE WITH YOU AND CAROLINE ON THE SHOW. FIRST, WE FINISHED A GREAT YEAR. Q4, IT BEAT TOP AND BOTTOM
LINE, FINISHING A YEAR THAT WAS COMFORTABLY AHEAD, SHOWING THE TRANSFORMATION JOURNEY WE ARE ON. AND WE ARE PUTTING POINTS ON THE BOARD FOR A LONG-TERM TRANSFORMATION OF THIS ICONIC COMPANY. Q1 AT THE LOWER END OF SEASONAL. WE THINK THE MARKET REACTION IS A BIT OVERSTATED IN THAT RESPECT. WE UNDERSTAND IT. OUR COMPANY, OUR EMPLOYEES, OR DOING AN INCREDIBLE JOB DELIVERING TECHNOLOGY, RESTORING PRODUCT LEADERSHIP, DEFINING NEW CATEGORIES LIKE THE AI PC. WE'RE NOT GOING TO BE JUDGED ON
THE 90 DAY SHOT CLOCK. WE ARE OUT TO REBUILD THIS COMPANY. WE HAD A GREAT 2023, AND I'M CONFIDENT IN A GREAT 2024 FOR THIS COMPANY. ED: THERE WERE QUESTIONS ON THE CALL ABOUT YOUR FOUNDRY BUSINESS. THAT IS THE CONTRACT MANUFACTURING BUSINESS WHERE YOU MAKE CHIPS FOR OTHERS. YOU SEEMED TO SAY THAT YOU DID
NOT GET AS MANY COMMITTED DOLLARS AS YOU THOUGHT YOU MIGHT. I WONDER WHAT IS STANDING IN THE WAY OF THAT -- CUSTOMERS COMMITTING TO BACKING YOUR FOUNDRY BUSINESS. PAT: WE ARE VERY COMFORTABLE WITH THE PROGRESS. WE SAID WE WOULD HAVE, IN OUR
LEADING EDGE NOTE, ONE. WE DELIVERED FOUR FOR THE YEAR. WE FOUND MOMENTUM IN OUR PACKAGING BUSINESS, WHERE WE NOW HAVE FIVE MAJOR CUSTOMERS ON OUR ADVANCED PACKAGING TECHNOLOGY. AND WE WENT FROM $4 BILLION TO OVER $10 BILLION OF LIFETIME DEAL VALUE. SO GOOD MOMENTUM. MOST IMPORTANTLY IS THE PROCESS TECHNOLOGY ITSELF, GOING BACK TO TECHNOLOGY AND ALL THE MILESTONES. ALL OF THE MILESTONES ARE ON TRACK TO PROCESS LEADERSHIP IN 20 25. A FOUNDRY COMPANY, THEY WANT TO
KNOW THAT IF THEY DESIGN ON US, THEY CAN BUILD THE BEST PRODUCTS, WE ARE GAINING MOMENTUM IN DELIVERING ON EXACTLY THAT PROGRESS -- THAT PROMISE. I'M SO PROUD OF MY TEAM FOR DELIVERING ON SUCH AN AUDACIOUS PLAN. WE ARE ON TRACK. CAROLINE: WHAT ABOUT THE TRACK FOR AI ACCELERATORS? NOT JUST AI ON THE PC.
I PUT IT BLUNTLY -- NVIDIA HAS RUN AWAY WITH THIS. CAN YOU REGAIN ANY SORT OF LEADERSHIP IN THAT SPACE? PAT: CLEARLY, THAT HAS BEEN AN AREA OF STRENGTH FOR THEM. WE APPRECIATE THAT THEY HAVE FOCUSED ON THAT FOR MANY YEARS. THE MARKET HAS COME THEIR WAY IN A STRONG WAY. OUR ROADMAP IS GAINING MOMENTUM. WE SAID WE ARE SEEING A SIGNIFICANT EXPANSION OF THE CUSTOMER PIPELINE THAT WE HAVE.
WE ARE RAMPING UP SUPPLIES. WE HAVE ENOUGH SUPPLY TO MEET MARKET. WE ARE WELL UNDERWAY IN OUR NEXT GENERATION. DOWDY THREE, AS IT IS CALLED -- 2X THE NETWORK IN THE LAB, GETTING REALLY GOOD EARLY DEBUG IN BRINGING THE PRODUCT TO MARKET LATER THIS YEAR. WE FEEL THAT YES WE HAVE A LOT OF WORK TO DO HERE, BUT THE MOMENTUM IS BUILDING. THE MARKET IS LOOKING FOR
ALTERNATIVES. OUR ROADMAP IS STRENGTHENING AS WE GO THROUGH THE YEAR. MORE IMPORTANTLY IS THE IDEA THAT LAST YEAR WAS IT THE YEAR OF HIGH-END TRADING. NOW, HOW DO I USE THOSE MODELS? THAT IS MORE ABOUT THE ENTERPRISE STRENGTH WHERE INTEL IS, AT THE EDGE IN THE PC AND IN THE ENTERPRISE A DISSENTER. WE SEE THE MARKET COMING -- THE ENTERPRISE DATA CENTER. WE SEE THE MARKET COMING OUR
WAY. CAROLINE: LET'S GO TO THAT CORE SEGMENT, DATA CENTERS. YOU PROMISED YOU ARE NOT LOSING MARKET SHARE. HOW DO YOU SHOW THE EVIDENCE OF THAT PATH? PAT: IN Q4, OUR ESTIMATES ARE THAT WE ARE ABOUT FLAT. CLEARLY, WE WANT SHARE. WE ARE EXECUTING ON OUR PRODUCT
ROADMAP AND WE ARE AHEAD OF SCHEDULE ON PRODUCTS FOR 2024. WE SEE GREAT MOMENTUM, GOOD EXECUTION. WE SENT OUR FIRST 2025 PRODUCT AHEAD OF SCHEDULE. OUR EXECUTION MOMENTUM IS BUILDING. WE SEE THAT WE HAVE STABILIZED THE MARKET SHARE, AND NOW IT IS TIME FOR US TO REBUILD WHERE WE WERE BEFORE. WE HAVE THE PRODUCTS AND THE STRENGTH TO DO IT.
REALLY PROUD OF OUR TEAM'S PROGRESS HERE. ED: WE ARE SPEAKING WITH THE INTEL CEO, PAT GELSINGER. AND I HAVE BEEN DOWN TO SANTA CLARA AND WAS SEEING THE REALITY OF INTEL, IT STRIKES ME AS BEING MORE MULTIFACETED THAN NVIDIA IN THE HIGH-END PERFORMANCE GPU.
PART OF THAT IS THE PACKAGING. PART OF THAT IS THE DIFFERENTIATION OF FOUNDRY. IT SEEMS TO BE HAPPENING IN THE CONTEXT OF DATA CENTER, CPU. I WONDER IF YOU COULD EXPLAIN TO OUR AUDIENCE WHAT YOU THINK IS HAPPENING IN THAT MARKET, SPECIFICALLY ON THE CPU SIDE. PAT: CPU, LAST YEAR, THERE WAS MORE ENERGY ON THE GPU FOR THIS HIGH-END TRADING SYSTEM. AS WE COME INTO THIS YEAR, WE THINK THERE IS GOING TO BE MORE BALANCE BETWEEN THE CPU AND THE ACCELERATOR MARKETPLACE. CLEARLY, WE ARE GOING TO BE
PARTICIPATING MORE IN THE ACCELERATOR, THAT THE STRENGTH HAS BEEN THE CORE DATA CENTER. COMING OUT OF THE WORLD ECONOMIC FORUM IN DAVOS -- WE PROBABLY MET WITH 50 CUSTOMERS. THE ENTHUSIASM THEY HAVE AND THE TRADITIONAL STRENGTH THAT INTEL HAS IN THE ENTERPRISE -- WE ARE IN YEAR 20 OF THE CLOUD, AND 60% OF COMPUTING IS IN THE CLOUD. AT 80% OF THE DATA REMAINS ON PRAM -- ON PREM, IN THE ENTERPRISE DATA CENTER. INTEL IS UNIQUELY STRONG AND
OUR ACCELERATORS ARE GOING TO UNLOCK CAPABILITY FOR OUR CUSTOMERS. THIS IS AN EXCITING TIME TO ENABLE THEM TO USE THE MODELS. ED: WHEN I LOOK AT THE CLOUD AND THE HYPER SCALARS, THE MORE INTERESTING STORY IS THE IN-HOUSE DESIGN WORK AND SILICON PROGRESS.
DO YOU CONSIDER THAT A FACTOR IN HOW YOUR OWN BUSINESS IN THE DATA CENTER AND CLOUD SIDE PERFORMED, AND HOW YOU THINK IT WILL PERFORM GOING FORWARD? PAT: YES, AND ONE OF THE THINGS I SAID IS INTEL HAS THE OPPORTUNITY OF 100% OF THE AI MARKET, BECAUSE WE ARE GOING TO HAVE OUR PRODUCT OFFERINGS SHOWING UP WITH GREATER IMPROVEMENT IN OUR ACCELERATOR PRODUCT LINE. BUT WE ARE ALSO GOING TO BE A FOUNDRY. AND ALL THE INTERNAL PROBLEMS YOU SEE AT AMAZON, GOOGLE, AND MICROSOFT -- WANT TO BE THE FOUNDRY FOR THOSE, AND ALL OF THE COMPETITOR PRODUCTS. ALSO, WE ARE SEEING THE MOMENTUM OF OUR PACKAGING TECHNOLOGY. INTEL UNIQUELY IS A COMPANY THAT HAS THE OPPORTUNITY TO PARTICIPATE IN 100% OF THE AI MARKET WITH OUR PRODUCTS AND FOUNDRY, AND THAT IS EXACTLY WHAT WE ARE GOING TO DO. CAROLINE:
HAS ANY OF THE WEAKNESS OF DEMAND THUS FAR BEEN BECAUSE OF THIS IN-HOUSE DESIGN AND BUILD COMMITMENT FROM SOME OF THESE COMPANIES? OR HAVE YOU ALREADY MANAGED TO GET VERBAL APPROVAL YOU WILL BE DOING THESE FROM A FOUNDRY BUSINESS? PAT: AT THIS POINT I WOULD SAY IT IS PRETTY EARLY. I DO NOT THINK IT HAS AFFECTED THE MARKET THAT MUCH. I THINK THIS FORWARD-LOOKING VIEW IS A UNIQUE ONE FOR INTEL. WE DO GET TO PARTICIPATE IN BOTH SIDES OF THAT MARKET. THERE IS A LOT OF ENERGY HERE IS THE CLOUD VENDORS ARE SAYING "HOW DO I HAVE A MORE COST-EFFECTIVE SOLUTION FOR THESE LARGE TRAINING DEMANDS OF GENERATIVE AI."
EVERYONE OF THEM HAS THESE PROJECTS UNDERWAY, AND WE ARE ENGAGING WITH ALL OF THEM AS WE SPEAK. I SEE THAT AS A LONG-TERM OPPORTUNITY. IT TAKES MULTIPLE YEARS FOR THOSE TO MATERIALIZE. AS OUR TECHNOLOGY SKIN MOMENTUM, THEY ARE SHOWING UP IN TIME TO SATISFY A UNIQUE AI MARKET FOR THOSE CON VENDORS. CAROLINE:
WITHIN THESE CHANGES IN AI, SO COMES A CHANGE IN TALENT FOR MANY OF THESE COMPANIES. ARE YOU HAVING TO REORIENT YOUR OWN WORKERS, YOUR OWN COLLEAGUES? ARE YOU HAVING TO LET GO OF PEOPLE? PAT: EVERY DAY, IT IS FOCUSED ON TALENT. IN THE TECHNOLOGY INDUSTRY, TALENT IS ONE OF -- CEO'S USED TO SAY WE START WITH SAND, THE SECOND-MOST PLENTIFUL MATERIAL ON EARTH, AND EVERYTHING ELSE IS TALENT, BETWEEN THAT AND DELIVERING OUR TECHNOLOGY.
THIS TALENT IS SO CRITICAL TO OUR MARKETS. INTEL HAS A TENURED AND CAPABLE BASE IN BOTH SOFTWARE AND HARDWARE, BUT WE ARE REORIENTING THEM VERY FAST TO THE AI REQUIREMENTS, TO DATA SKILLS, TO SOFTWARE SKILLS. WE BUILD ON A VERY FIRM FOUNDATION. WE ARE BRINGING ADDITIONAL TALENT INTO DO THE BEST PRODUCTS, TO ENABLE THE BEST CUSTOMER EXPERIENCE THEY COULD HAVE.
THE AI PC, WE ARE DEFINING THE CATEGORY AND DELIVERING ON IT AT SCALE WITH ISV'S AND OUR OEM'S IN THE MARKETPLACE TODAY. PAT: -- ED: IN THE PAST, YOU HAVE BEEN KIND AND EXPAND TO ME WHAT IT TAKES TO JUMP A GENERATION ON THE MANUFACTURING SIDE. AND KIND OF THE PROCESS TO REGAIN TECHNOLOGY LEADERSHIP. IN THE SMALL TIME WE HAVE LEFT,
WHAT EVIDENCE DO YOU HAVE THAT BEAUTIFUL CART YOU DO FOR ME ON THE RIGHT -- ON THE WHITEBOARD IS PLAYING OUT THE WAY YOU EXPECTED? PAT: WE DESIGNED IN Q4 OF LAST YEAR. WE HAVE SEEN OUR CUSTOMERS EXPAND. AND WE SENT OUR FIRST MAJOR PRODUCT INTO THE FAN JUST BEFORE THE EARNINGS CALL STARTED AHEAD OF SCHEDULE. IF YOU CAN TAKE A BIG PROCESS AND SEND IT WITH STABLE DESIGN RULES INTO MANUFACTURING, THAT IS A PRETTY DEFINITIVE STATEMENT OF MOMENTUM. WE ARE ADDING CUSTOMERS.
WE HAVE 75 TEST CHIPS IN PLAN RIGHT NOW. LOTS OF CUSTOMERS SAYING, WE WILL TRY IT. AND WE HAVE OUR FOUNDRY DAY, THE OPENING OF THE DAYS OF INTEL FOUNDRY COMING UP IN FEBRUARY. A MOMENT FOR THE EVA PARTNERS, THE PROVIDERS, AND OUR CUSTOMERS TO SHOW UP AND SEE THE PROGRESS WE ARE MAKING. FOR THE FIRST TIME, WE WILL TALK ABOUT WHAT HAPPENS. THE MOORE'S LAW -- WE ARE THE STEWARDS.
UNTIL THE PERIODIC TABLE IS EXHAUSTED, WE AIN'T FINISHED. WE ARE CONFIDENT WE WILL KEEP INNOVATING AT PROCESS TECHNOLOGY FOR DECADES TO COME. ED: INTEL CEO PAT GELSINGER, THANK YOU. CAROLINE: HERE IS A QUICK CHECK ON THESE MARKETS.
WE KNOW THAT INTEL PERHAPS IS A BIT OF A PULL ON THE OVERALL NASDAQ. WE ARE OFF BY A 10TH OF A PERCENT. THE INFLATIONARY PRESSURE SEEMED TO DIAL BACK. WE ARE STILL SEEING STRENGTH IN THE CONSUMER AND THE OVERALL RETAIL SIDE OF THINGS. A BOND MARKET THAT STILL ANTICIPATES LESS. I'M LOOKING AT WHAT HAPPENS IN CHINA.
TRAINING FLAT ON THE GREEN SHARES. THE PLAYERS MANAGING TO TREAD WATER DESPITE CONCERNS GEOPOLITICALLY SPEAKING ABOUT MED TECH COMPANIES AND A PUSHBACK FROM THE U.S. VERSUS CHINESE PLAYERS. INTEL IS OFF BY MORE THAN 10%. WE HAVE HAD SOME KEY CONCERNS. INTEL HAS BEEN OFF BY 10%. KLA HAS BEEN OFF BY MORE THAN 5%, THIS BEING ANOTHER SEMICONDUCTOR EQUIPMENT MAKER. THEY SEE SOME EARNINGS THAT DID NOT LIVE UP TO EXPECTATIONS.
ON A SOFTER SIDE, T-MOBILE. THEY MANAGED TO ADD MORE THAN 900,000 SUBSCRIBERS. ED: UNDERSTANDABLY SOME OF THE NERVOUSNESS FROM INTEL GOES TO THE REST OF THE TECH SECTOR. IT IS AN ELECTION YEAR. IN THE COMING WEEK, YOU HAVE ALL OF THE SOCIAL MEDIA CEO'S IN ONE PLACE.
META IS ADDING FURTHER MEASURES TO PREVENT TEAMS FROM UNWANTED CONTACT TO TURN OFF THEIR INABILITY TO RECEIVE DIRECT MESSAGES FROM ANYONE THEY DON'T FOLLOW OUR ARE NOT CONNECTED TO ON INSTAGRAM BY DEFAULT. THERE ALSO LOOKING AT CHILDREN'S CONTROL. THERE WAS A CONGRESSIONAL HEARING WHERE TECH CEO'S WILL TESTIFY NEXT WEEK. LET'S BREAK IT DOWN WITH THE
HEAD OF LEGAL AND PUBLIC POLICY AT A PARIS-BASED SOCIAL DISCOVERY PLATFORM FOR GEN Z, WHICH IS JUST UNVEILED ITS OWN REFERENCE DOCUMENT ON UNIVERSAL SAFETY PRINCIPLES FOR YOUNG PEOPLE ONLINE. WE ARE VERY FAMILIAR WITH GETTING ALL OF THE CEO'S IN ONE PLACE. THERE HAVE BEEN QUESTIONS OF THE CYNICISM OR SKEPTICISM -- WHAT DOES IT ACHIEVE? >> I CANNOT SPEAK FOR THE PLATFORMS. I CANNOT SPEAK FOR THE TECH COMPANIES. CAROLINE: WE ARE HAVING STRUGGLES HEARING YOU AT THE MOMENT.
LET US FOCUS IN ON YOUR MICROPHONE FOR A SECOND. I THINK THAT WE ARE GOING TO BE HEARING FROM -- THIS IS A COMPANY THAT IS BUILDING IN COLLABORATION WITH SOME SOCIAL MEDIA COMPANIES, A WAY IN WHICH YOU CAN SORT OF SELF POLICE AND PUT ON GUARD RAILS, AND IN MANY WAYS USE ARTIFICIAL INTELLIGENCE AS A MEANS OF NOT JUST A WORRY WHEN IT COMES TO EXPOSURE OF CHILDREN, BUT MORE OF A TOOL TO HEAL, A WAY COMPANIES CAN IDENTIFY WHEN THERE IS BAD BEHAVIOR GOING ON, CHILD EXPLOITATION HAPPENING ACROSS THE PLATFORM. ED: THIS HEARING NEXT WEEK WAS DUE TO HAPPEN BEFORE THE HOLIDAYS.
MY UNDERSTANDING FROM SOURCES IS COME IN THEY COULD NOT GET THEIR ACT TOGETHER AND THE CEO'S COULD NOT GET IN PLACE AT THE SAME TIME. WE HEAR THAT ALL OF THE GREAT TOOLS WE HAVE TO ADVANCE OUR WORK AT HOME, THE THREAT ACTORS HAVE. IT IS GOING TO BE INTERESTING IF THAT IS THE POINT OF FOCUS THAT LAWMAKERS GO AFTER. OFTEN, WHEN YOU GET ALL THESE CEO'S IN ONE PLACE, THEY DON'T FOCUS REALLY. CAROLINE: IT IS SOUND, UNFORTUNATELY. ED: I BELIEVE YOUR MICROPHONE IS
BACK UP. LET'S GO WITH THAT. WHAT IS IT THAT YOU THINK THE SOCIAL MEDIA INDUSTRY NEEDS TO DEMONSTRATE TO THE PUBLIC IN THE COMING WEEK? >> I THINK TRADE IS ALREADY SOMETHING THAT IS A WORK IN PROGRESS. THEY HAVE TO DEMONSTRATE THAT THEY ARE INVESTED AND COMMITTED TO TACKLING THESE ISSUES AND PROTECTING CHILDREN ONLINE. BUT NOW WE NEED TO FOCUS ON
SOLUTIONS. I EXPECT FROM THIS HEARING THAT IT WILL BE FOCUSED ON SOCIALS, ON PRACTICAL SOLUTIONS. THAT IS THE PURPOSE THE SENATE IS LOOKING FOR WITH THIS HEARING, NOT ONLY HAVING AN OVERVIEW OF THE ISSUES -- WE KNOW THE IMPACT OF THE USE OF AI AND THE RISK OUR CHILDREN ARE FACING. NOW, WE NEED TO FOCUS ON OPERATIONAL SOLUTIONS AND DO THE WORK THAT WE HAVE BEEN DOING AT YOU BOTH-- AT YUBO SINCE THE BEGINNING OF THE COMPANY, WORKING ON FINDING PRACTICAL SOLUTIONS. CAROLINE:
LET'S TALK ABOUT THEM. IN MANY WAYS, YOU ARE TRAINED TO ENSURE THAT SOMEONE IS THE AGE THEY IDENTIFY THEMSELVES AS. WHETHER THAT IS USING PHOTOS AND ARTIFICIAL INTELLIGENCE TO IDENTIFY WHERE THEY ARE OLDER OR YOUNGER THAN THE AGE THEY HAVE PUT IN -- ANYONE UNDER 13 SHOULD NOT BE USING THE APP. HOW HAVE YOU DONE THAT FROM A PRIVACY PERSPECTIVE, ON OPT IN PERSPECTIVE? SHARONE: YOU HAVE THE BIGGEST ISSUE WHEN YOU PUT IN PLACE ON OPERATIONAL -- IT IS THE PRIVACY.
AS YOU KNOW, YUBO IS A FRENCH COMPANY, SO PRIVACY WITH THE GPI IS SOMETHING THAT COMES NATURALLY WITH US. ALL OF OUR PRODUCT SAFETY -- PRIVACY BY DESIGN IS THE WORK WE NEED TO DO. IT IS DOABLE. WE CAN DO IT. IT IS JUST A QUESTION OF PRIORITY. AND ALSO A QUESTION -- AT WHAT MOMENT DO YOU START TO THINK ABOUT THIS QUESTION OF COMPLIANCE WITH PRIVACY THAT YOU NEED TO TAKE INTO CONSIDERATION? FOR EXAMPLE, ONE OF THE WORK WE HAVE BEEN DOING IS WORKING WITH AN OLDER INSTITUTION IN FRANCE AND IN THE U.K., TO WORK ON THE
OBLIGATION TO INTEGRATE. THE WORK WE HAVE BEEN DOING WITH THE FRENCH ORGANIZATION -- WE CREATED A WORKING GROUP WITH THIS AGENCY. IN THIS WORKING GROUP, WE HAD A LOT OF COMPANIES LIKE META, BUT ALSO NGO'S AND AGENCIES SUCH AS -- WE CAME UP WITH 100 PAGES OF OPERATIONAL SOLUTIONS, GIVING GUIDELINES AND RECOMMENDATIONS ON HOW TO PROTECT MINORS ONLINE, HOW TO MODERATE CONTENT AND WORK ON AGENT REFERENTS. CAROLINE: YOU HAVE COME HERE TO TALK TO LAWMAKERS, TO SHOW OFF THIS DOCUMENT AND SEE WHETHER IT WILL BE ADOPTED.
AS IT LANDED ON EARS THAT ARE WELCOMING? THIS IS 100 PAGES THAT YOU HAVE GIVEN. IS IT GOING TO WORK IN THE UNITED STATES AS WELL AS EUROPE AND THE U.K.? SHARONE: WE HOPE SO. THAT IS THE PURPOSE. THERE IS NO REASON IT SHOULD
NOT WORK. WE FACE ALL THE SAME ISSUES IN TERMS OF RISK. WE ALSO ARE ENDING AT A POINT WHERE THE LEGISLATION, IN TERMS OF PRIVACY, BUT ALSO OF CHILD PROTECTION AND OF SOCIAL MEDIA LEGISLATION -- IT IS KIND OF NOT THE SAME EVERYWHERE, BUT WE ARE HEADING ALL IN THE SAME DIRECTION. THERE IS NO REASON IT SHOULD NOT WORK HERE. AS I SAID HERE, WHEN META -- WE HAD NO DIFFICULTY ENDING UP ON SOMETHING WE ALL AGREED ON. THAT IS A THING WE SHOULD KEEP
IN MIND. MULTI-STAKEHOLDER WORK IS THE WAY WE WILL ACHIEVE THIS PURPOSE , AND WE WILL ACHIEVE HAVING A SOCIAL PLATFORM THAT PROTECTS CHILDREN, THAT IS SAFE FOR THEM. THAT IS REALLY THE GOAL WE ALL WANT TO ACHIEVE. CAROLINE: THANK YOU FOR TALKING US THROUGH THIS DOCUMENT. YOU ARE THE HEAD OF LEGAL AND PUBLIC POLICY AT YUBO. COMING UP, WE TAKE A DEEP DIVE INTO HEALTH CARE INVESTING. STICK WITH US ON VC SPOTLIGHT.
CAROLINE: LET'S TALK ABOUT INVESTING FROM A VENTURE PERSPECTIVE, PARTICULARLY IN HEALTH TECH RIGHT NOW. VC SPOTLIGHT IS ON A MANAGING DIRECTOR. $1 MILLION IN ASSETS UNDER JUDGMENT. MUCH HAVE YOU BEEN ABLE TO PUT
TO WORK? HOW MUCH DO YOU SEE OPPORTUNITIES TO WRITE NEW CHECKS AT THE MOMENT? >> FIRST OF ALL, THANK YOU FOR INVITING ME, ED AND CAROLINE. GREAT TO BE HERE. WE HAVE BEEN BUSY. AS YOU SAID, WE HAVE OVER $1 BILLION UNDER MANAGEMENT. WE BELIEVE AT OBVIOUS THAT THE MOST VALUABLE COMPANIES OF OUR TIMES WILL BE COMPANIES SOLVING AMERICA'S BIGGEST CHALLENGES. WE BELIEVE THAT IF YOU FOCUS WITH THIS INTENTIONALITY IN AREAS -- ONE IS HUMAN HEALTH. YOU WILL CREATE AMAZING
COMPANIES FOR OUR TIMES. THIS KIND OF INVESTMENT IS WHAT WE CALL POSITIVE INVESTING. ED: WHAT I FIND SO INTERESTING ABOUT THIS AREA IS, IF YOU TAKE HEALTH AS AN EXAMPLE -- BE IT A PIECE OF SOFTWARE, OR EVEN IN THE HARDWARE SPACE, IN NORTH AMERICA, YOU ARE TRYING TO BUILD A PRODUCT IN A COMPANY THAT IS SELLING IT TO A HIGHLY REGULATED SECTOR, AND YOU ARE DOING BUSINESS WITH PRIVATE AND PUBLIC FORMS THAT MOVE REALLY SLOW. I WONDER HOW DIFFICULT THAT MAKES LIFE FOR YOU WHEN YOU ARE TRAINED TO WRITE AN EARLY CHECK TO A COMPANY AND THERE IS A FUTURE YOU ARE ASSESSING.
VISHAL: I THINK THAT IS A GREAT QUESTION. ALL OF US CAN AGREE THAT WE BELIEVE THAT WE ARE NOT GETTING BANG FOR OUR HEALTH CARE BOOK. THERE IS A HUGE MODE OF OPPORTUNITIES IN OUR HEALTH CARE SYSTEM.
WE SPENT $4 TRILLION IN OUR HEALTH CARE SYSTEM, BUT OUR OUTCOMES ARE NOT THAT GREAT COMPARED TO OTHER CIVILIZATIONS. WE HAVE AN AGING POPULATION. IN THIS AGING POPULATION IS GOING TO PUT MORE PRESSURE ON OUR HEALTH CARE SYSTEM, AND HEALTH CARE IS A REGULATED INDUSTRY. THINGS MOVE SLOWLY. WHAT IS GOOD AS NEW INNOVATIONS
COME LIKE AI. BECAUSE OF REGULATION, THEY ARE ABLE TO BE VERY POWERFUL UPFRONT TO MAKE A POSITIVE DENT IN SOME OF THESE BIG PROBLEMS IN HEALTH CARE. ED: I JUST HOPPED OVER FROM SAN FRANCISCO, WHERE I AM NORMALLY BASED. CAROLINE AND I LOVE TO GET THE SCOOP. AND J.P. MORGAN, ALL OF YOUR INDUSTRY PEERS WERE IN THE CITY -- ALL OF THE BANKER, VC'S, BIOTECH COMPANIES.
IS THERE ANY MOVEMENT IN THE DAYS THAT FOLLOWED? ANY DEALS THAT HAVE CROSSED YOUR DESK AS A DIRECT -- AS A DIRECT RESULT OF J.P. MORGAN HEALTH CARE? VISHAL: THEY BRING ALL THE PLAYERS HERE TO THIS WONDERFUL CITY OF SAN FRANCISCO. I THINK THE CRITICAL THING ALL OF US ARE TALKING ABOUT IS, WHAT ARE THE BIG PROBLEMS AND WHAT ARE THE SOLUTIONS? OBVIOUSLY, WE FOCUS ON THREE BROAD AREAS IN HEALTH CARE. ONE, WE BELIEVE ON HEALTH CARE, THE PAYMENT SYSTEM HAS TO MOVE TOWARD BEING OUTCOME DRIVEN VERSUS FOR SERVICES ONLY. THE INDUSTRY CALLS THIS THE VALUE-BASED APPROACH OF HEALTH CARE. NUMBER TWO, WE BELIEVE THE INFRASTRUCTURE OF HEALTH CARE RIGHT NOW IS BEING POWERED FROM A TECHNOLOGY POINT OF VIEW FOR EPISODIC CARE AND FOR BILLING. NEED TO MOVE TO WHERE IT IS
MORE HOLISTIC CARE OR LONGER CARE THINGS TO NEW TECHNOLOGIES LIKE GENERATIVE AI, IN THE FUTURE, WE CAN MOVE TOWARD MORE INTELLIGENT CARE, SO WE CAN PROVIDE EXCELLENT CARE FOR EVERY HUMAN BEING ON THE PLANET. NUMBER THREE, FROM A BIOLOGY POINT OF YEAR, -- POINT OF VIEW, WE BELIEVE BIOLOGY IS NOT TERRIBLY WELL UNDERSTOOD. SO APPROACHES AS A WAY TO DECODE TECHNOLOGY, SO WE CAN BUILD DRUGS WITH FAST TIMELINES -- ALL THE INDUSTRY PEOPLE ARE THINKING ABOUT THAT AT GPM -- JPM, AND WE HAVE BEEN INVESTING IN THESE AREAS. CAROLINE: HOW MUCH ARE YOU AND YOUR FOUNDERS THINKING ABOUT A POLITICAL CHANGE AND THE POTENTIAL FOR POLICYMAKING TO BE DIFFERENT UNDER POTENTIALLY A DIFFERENT PRESIDENT, COME THE END OF THIS YEAR? VISHAL: AGAIN, I THINK ALL OF US, WHETHER WE ARE DEMOCRATS OR REPUBLICANS, WE ALL AGREE THAT WE ARE NOT GETTING BANG FOR OUR HEALTH CARE BOOK. AND BECAUSE WE ARE NOT GETTING
A BANG FOR OUR HEALTH CARE BOOK, ALL OF US NEED TO FIGURE OUT HOW TO MOVE TOWARD A SOLUTION, SUPPORTING SOLUTIONS. WE ARE INVESTING IN THE INNOVATION ECONOMY. WE ARE THINKING ABOUT WHAT WOULD HAPPEN IN THE NEXT 10 YEARS. WE DON'T THINK ABOUT WHAT IS GOING TO HAPPEN IN THE NEXT QUARTER. THESE PROBLEMS ARE REAL, AND THERE ARE POTENTIALS FOR COMPANIES TO USE NEW TECHNOLOGY LIKE AI. ED:
COMING UP, BITCOIN TOPS $41,000. ETF FLOWS SLOW FROM THE BITCOIN TRUST. THIS IS "BLOOMBERG TECHNOLOGY." ED: IT'S TIME FOR TALKING TECH. THIS IS SOMETHING I REPORTED WITH OUR DEALS TEAM. A CHIP STARTUP, CEREBRAL'S -- CEREBRAS SYSTEMS, IS CONSIDERING AN IPO, AIMING FOR THE SECOND HALF OF THIS YEAR. THE IPO COULD VALUE THEM ABOVE THE $4 BILLION FIGURE ACHIEVED IN THE LAST ROUND IN 2021. MICROSOFT IS WARNING OTHERS
ABOUT A RUSSIAN STATE-SPONSORED HACKING GROUP. THIS WEEK, MICROSOFT ACCUSED THE GROUP KNOWN AS MIDNIGHT BLIZZARD OR COZY BEAR OF HACKING INTO EXECUTIVE EMAILS IN DECEMBER 2023. HPE REPORTED A DATA BREACH THAT WAS LIKELY CAUSED BY THE SAME GROUP. AFTER SECURING $50 MILLION IN FUNDING FROM INVESTORS, KRUTRIM HAS BECOME INDIA'S FIRST AI STARTUP TO GAIN A BILLION-DOLLAR VALUATION. IT HAS ONLY BEEN ONE MONTH SINCE IT DEBUTED ITS LOM. CAROLINE:
THAT MOVES FAST. SO DOES THE WORLD OF CRYPTO. BITCOIN IS ABOVE $41,000, OFF THE HIGHS WE HAVE SEEN IN A MONTH, THAT IS THERE A SLOWDOWN IN OUTFLOWS? STRATEGISTS SEEM TO THINK THAT IF YOU FLOW THE OUTFLOW, MAYBE WOULD SEE SOME RESILIENCE IN THE PRICE OF BITCOIN. JAMES, WHY SHOULD OUTFLOWS OF AN ETF MATTER PARTICULARLY TOWARD PRICE POINT? JAMES: THE OUTFLOWS OF AN ETF ARE PART OF THE ENTIRE PIE THAT MAKES UP THE PRICE OF BITCOIN. OUTFLOWS ARE SELLING BITCOIN. THAT SAID, WE HAVE HAD NET
INFLOWS SINCE THESE LAUNCHED IN THE U.S.. YOU CAN SEE THAT OPEN INTEREST IN FUTURES -- THAT IS DOWN. YOU HAVE HAD OUTFLOWS FROM CANADIAN ETF'S. THERE HAS BEEN NET OUTFLOW. BUT WHAT A LOT OF PEOPLE SEEM TO BE MISSING IS THESE ARE THE PIECE OF THE PIE.
THIS IS A SMALL PERCENTAGE IN WHAT IS ACTUALLY HAPPENING TO THE BITCOIN PRICE. ED: WEEDING THE BLOOMBERG TERMINAL, THERE IS TALK ABOUT REBOUNDING. BUT IF YOU JUST LOOK AT THE CHART, IT KIND OF TUMBLED DOWN FROM THE JANUARY HIGH. WE ARE HAVING A SPRIGHTLY UPTICK.
EXPLAIN THE TRADING ACTION RELATIVE TO THE ACTUAL MECHANICS OF THE PRODUCTS THAT HAVE COME ONLINE IN THE LAST THREE WEEKS. JAMES: FROM MY POINT OF VIEW, IT HAS KIND OF BEEN SIDEWAYS SINCE JANUARY. WE HAD A MASSIVE SPIKE UP TO 49, WE HAVE BEEN IN THIS LOW 40'S RANGE. A LOT OF THE SELLING, WE KNEW THERE WAS A LOT OF MONEY TIED UP IN INSTITUTIONAL CAPITAL, CAPITAL FROM BANKERS. THEY HAVE MONEY THEY NEED ACCESS TO, THE COMPANY THAT IS THE PARENT OF GRAYSCALE.
THERE HAS BEEN FORCED SELLING IN THE MARKET BECAUSE PEOPLE WANT TO GET THEIR CAPITAL OUT. BUT THERE HAS ALSO BEEN BUYING ON THE OTHERS OF THIS. THERE WAS UNDOUBTEDLY FORCED SELLING THAT BECAUSE WHAT WE HAVE SEEN IN RECENT WEEKS. WE HAVE SEEN SOME OF THIS HINTED AT. WE ONLY SAW $394 MILLION COME OUT OF GB TC YESTERDAY, WHICH IS A LOW OVER THE LAST COUPLE OF WEEKS. CAROLINE:
IT NEVER DIALS DOWN WHEN IT COMES TO THE WORLD OF THE NEW ETF'S. THAT DOES IT FOR BLOOMBERG TECHNOLOGY. NICE TO HAVE YOU HERE.
2024-01-27 13:32
