Broadcom's Nvidia Moment, Trump Meets With TikTok | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK THIS IS "BLOOMBERG TECHNOLOGY." BOB COME BECOMES THE NEW NVIDIA AS LATTER FALLS FURTHER INTO CORRECTION TERRITORY. PLUS THE TIKTOK CEO MEETS WITH PRESIDENT-ELECT DONALD TRUMP. AND A CONVERSATION WITH SENATOR AMY KLOBUCHAR ON HOW TO COMBAT THE RISE OF AI GENERATED DEEPFAKE MATERIAL ONLINE.
FIRST TO CHECK ON THE MARKETS WHICH COME DOWN FROM RECORD HIGHS. WE DIGEST THE RETAIL SALES DATA WHICH SHOWS THE U.S. ECONOMY RESILIENCE -- REMAINS RESILIENT AS WE LOOK AT THE FARRO. -- AS WE LOOK AT TOMORROW. INTO SOME OF THE INDIVIDUAL MOVERS, CHIP STOCKS HAVE BEEN DRAGGING US LOWER, COMING DOWN FROM A C OF A GET RUN. BRODD CALMED DOWN MORE THAN 5%. -- NEW VIDEO OFF 2.2%. WE ARE FURTHER INTO CORRECTION
TERRITORY. THAT WAS IN EARLY NOVEMBER. I'M LOOKING AT ARM IS SOMEWHERE IN DELAWARE ARM TAKES ON QUALCOMM. CHIPMAKERS GOING HEAD-TO-HEAD IN AN IP BATTLE. IAN KING, THE CHIP MASTER IS HERE. LET'S JUST FOCUS ON THE VIDEO. -- ON NVIDIA. IS THERE ANY FUNDAMENTAL REASON WE ARE GETTING TO A TECHNICAL CORRECTION? IAN: THING YOU HAVE SEEN ANY REPORTING ON.
REMEMBER THEY SAID WE ARE SOLD OUT. THEIR EARNINGS ARE A PRODUCT OF HOW MUCH THEY CAN GET FROM THEIR SUPPLIERS. NOTHING FUNDAMENTALLY THAT WOULD GIVE ANYBODY ANY PAUSE BUT A HUGE AMOUNT OF MONEY HAS BEEN BROUGHT INTO THAT STOCK. CAROLINE: IT IS UP MORE THAN 100%. WE THEN FLIPPED TO MAY BE A ONE A B NVIDIA. BROADCOM SIGNALED THE MARKET
FOR ITS DESIGNS WITHIN DATA CENTERS AND THE CROWD WENT WILD. CAN YOU FOCUS ON BROADCOM AND PROFIT TAKING ON THE DATE. WHAT DID THEY HAVE TO DO TO MAKE THIS A REALITY? IAN: THEY HAVE TO WORK REALLY HARD. WHAT THEY GAVE WAS NOT A SALES TARGET. THE 90 BILLION HE WAS TALKING ABOUT WAS AN ADDRESSABLE MARKET FOR HIS TYPE OF CHIPS AND THAT IS WHY 2027. HE WAS SAYING WE HAVE LINE OF SIGHT TO A HUGE INCREASE IN WHAT WE DO BUT THAT PALES IN COMPARISON TO NVIDIA WHICH WILL BE 120 MILLION IN DATA CENTER SALES ALONE THIS YEAR. CAROLINE: WHEN IT COMES TO ENTICING
DIFFERENT KINDS OF INVESTORS, MANY WERE BASICALLY PLAYING CATCH UP TO NVIDIA FOR THE LAST TWO YEARS. IS THERE A SLIGHT FOMO RAID GOING ON? -- IS THERE A SLIGHT FOMO TRAIN GOING ON? IAN: PART OF IT IS BROADCOM IS DESIGNING CHIPS FOR GOOGLES AND MICROSOFT WHO ARE DESIGNING THEIR OWN SHIPS ALTHOUGH THEY DO NOT HAVE TO BUY AS MUCH FROM NVIDIA. THEY ARE IN MIND EVERYBODY WHO HAS BEEN ASKED ABOUT THIS SET THERE IS PLENTY OF ROOM FOR EVERYBODY.
THIS IS A MASSIVE GROWTH OPPORTUNITY. NOBODY IS TAKING ANYTHING AWAY FROM ANYBODY. CAROLINE: ALL, -- QUALCOM AND ARM? HOW BIG IS THIS. IAN: IT IS VERY STRANGE THERE ON THIS COLLISION COURSE. OUR ANALYST SAYS THEY SHOULD NOT BE DOING THIS. CAROLINE:
CURRENTLY UP 100% FOR THE YEARS ON ARM SHARES. IAN KING, WE THANK YOU SO MUCH. A TAIWANESE MAKER OF SILICON WAFERS HAS FINALIZED A DEAL TO RECEIVE AS MUCH AS $406 MILLION IN AWARDS ON THE U.S. CHIPS AND SCIENCE ACT THAT WILL HELP BUILD FACTORIES IN TEXAS AND MISSOURI. THE U.S. COMMERCE DEPARTMENT SAYS IT WILL DO OUT THE FUNDS BASED ON RECENT DESK BASE -- BASED ON REACHING CERTAIN MILESTONES. KELLY COXES WITH US, CHIEF
MARKET STRATEGIST AT RUTH HOLDS MARKET MANAGEMENT. WE HAVE A LOT WHEN IT COMES TO CHIPS. ON THE DOWNSIDE TODAY BUT ON THE UPSIDE FOR THE YEAR. IS THIS A TRADE YOU WANT TO REMAIN IN? KELLY: I WILL JUST TOSS A SHOUT OUT TO YOUR PRIOR GUEST BECAUSE HE FRAMED IT SO PERFECTLY. YOU ARE SEEING A TRAIT IN RAREFIED AIR. THE AI TRAIT IS ONE OF THE BIG
STORIES OF 2024 THAT MEANS WHEN THE AI STORY HITS A BUMP, I DO NOT THINK IT IS HITTING A PUMP TODAY. THERE ARE CHANGES FROM WHAT WE SAW ON BROADCOM EARNINGS. YOU CAN SEE SOME OF THESE CHEAPER -- THE STEEPER PULLBACKS BECAUSE THE SECTOR HAS DONE SO WELL. OBVIOUSLY THE AI STORY IS QUITE ENCOURAGING. WE ARE EXCITED TO SEE WHERE AI GOES IN THE COMING YEARS. AT THE SAME TIME TECH IS THE MOST OVERVALUED SECTOR IN THE MARKET. EVEN THOUGH THERE ARE A LOT OF
POSITIVE SIGNS WE ARE URGING CLIENTS TO THINK ABOUT BALANCE IN THEIR PORTFOLIOS AND REALLOCATING IT. CAROLINE: WITH INTECH COME IS THAT -- WITHIN TECH IS THERE A WAY OF REORIENTING? CALLIE: IF YOU'RE ALL ABOUT THE AI STORY YOU NEED TO START LOOKING ABOUT THE SHOVELS. I THINK MANY PEOPLE ARE DOING THAT. THAT IS WHY CHIPMAKERS HAVE HAD SUCH AN AMAZING YEAR. I THINK IT IS TIME TO LOOK OUTSIDE CHIPMAKERS, LOOKING AT THE COMPANIES THAT COULD UTILIZE AI IN THEIR DAY-TO-DAY OPERATIONS. LAST YEAR I REALLY LIKE GOING THROUGH EARNINGS REPORTS AND SEEING WHICH COMPANIES MENTIONED AI AND HOW WELL THEY DID. THERE WERE DEFINITELY A LOT OF
HIDDEN GEMS TOWARDS THE END OF LAST YEAR. THAT IS AN EXERCISE I'VE NOT DONE IN A WHILE BUT I THINK THERE IS A LOT OF HIDDEN VALUE, ESPECIALLY IN THE SMALLER TECH COMPANIES THAT HAVE NOT GAINED AS MUCH FAVOR. CAROLINE: DOES THAT REMAIN WITHIN THE TECH AREAS THAT BECOME GENERATIVE AI ADJACENT OR IS IT LOOKING TO THE HEALTH CARE IMPLICATIONS. WE HAVE ALL LOOKED AT ENERGY FROM AN INFRASTRUCTURE PLAY BUT ENERGY AS AN APPLICATION, HOW ARE YOU SEEING OTHER SECTORS ADOPT AI AND HOW ARE THEIR NUMBERS? CALLIE: TO BE CLEAR I DO NOT LOOK TOO FAR INTO AI USAGE BEYOND THE BROADER SECTOR TRENDS I THINK EVERY WALL STREET EXPERT WATCHES.
I THINK THERE ARE A LOT OF APPLICATIONS YOU CAN SEE, ESPECIALLY IN HEALTH CARE. INDUSTRIALS ARE ANOTHER SECTOR IN THE AI TRAIT. WHAT INVESTORS NEED TO REMEMBER IS THIS IS A VERY LONG-TERM STORY. YOU CANNOT JUDGE IT BY ONE DAY OR A FEW DAYS. THIS WILL TAKE YEARS TO MATERIALIZE. IF YOU'RE LOOKING FOR UNLOVED STOCKS, COMPANIES THAT MIGHT BE DABBLING IN AI, YOU HAVE TO THINK ABOUT HOLDING THEM FOR YEARS. CAROLINE: HOW DO YOU FIND THEM?
HOW DO YOU FIND THE UNLOVED SMALLER STOCK THAT NO ONE HAS BEEN TALKING ABOUT AND WHAT IS IT YOU WILL GO INTO FROM A DATA PERSPECTIVE OR A SINGLE PERSPECTIVE? CALLIE: THERE IS STILL A LOT OF OPPORTUNITIES OUT THERE. INTEREST RATES HAVE READ -- HAVE LED TO A THIN RALLY OVER THE PAST YEAR. BECAUSE THE RALLY HAS BEEN SO THIN THERE ARE SOME COMPANIES THAT ARE ON THE CUSP OF TALKING ABOUT AI MORE AND DISCOVERING APPLICATIONS FOR AI THAT HAVE NOT GOTTEN THAT MARKET LOVE THAT OTHER MORE ATTENTION GRABBING NAMES HAVE. I THINK YOU HAVE TO LOOK AT VALUATIONS, LOOK AT VALUATIONS, LOOK AT THE PLAN FOR EARNINGS. I DON'T THINK MANY AI COMPANIES
OR AI TANGENTIAL COMPANIES ARE SEEING EARNINGS COME FROM AI APPLICATIONS. THIS IS STILL A VERY EARLY STORY. RIGHT NOW IF YOU ARE A LONG-TERM INVESTOR YOU CAN LOOK AT VALUATIONS, YOU CAN LOOK AT REVENUE SIGNALS WE HAVE SEEN IN THE VIDEO AND BROADCOM -- IN NVIDIA AND BROADCOM TO SEE IF THERE ARE SIGNS OF UPTAKE. EVEN MANAGEMENT COMMENTARY YOU CAN FIND SOME VALUABLE THINGS. THAT MEANS HAVING TO PART
THROUGH EARNINGS REPORTS AND LISTEN TO THE EARNINGS CALLS. CAROLINE: IT TAKES A LOT OF WORK. THAT IS WHY YOU GET PAID THE BIG BUCKS. LET'S TALK ABOUT THE MACRO PICTURE.
WHILE WE ARE IN THIS VALUE PICTURE, WE HAVE A FED LOOKING TO CUT TOMORROW. HOW MUCH RISK IS THERE IN MACRO POLICY? CALLIE: THERE IS A LOT OF RISK AT THE MOMENT. RIGHT NOW I STILL FEEL QUITE ENCOURAGED BY THE ECONOMY, THE ECONOMY HAS BEEN INCREDIBLY RESILIENT. THE RISK I SEE IS THE FACT WE
ARE LEANING INTO THIS TECH VERSUS EVERYTHING ELSE TRADE AGAIN IN DECEMBER. YOU STILL HAVE A FED THAT HAS NOT BEEN QUITE CLEAR ABOUT WHERE THEY WILL GO INTO 2025. WE ARE ABOUT TO GET A LOT OF DETAIL AROUND THAT TOMORROW WHEN THE FED RELEASES ITS DECISION AND MORE IMPORTANTLY JAY POWELL COMES OUT AND HOLDS HIS PRESS CONFERENCE. THIS IS A FED CHAIR THAT LOVES TO TALK ABOUT SCENARIOS GOING INTO THE FUTURE. I THINK MARKETS AND WALL STREET ARE OVERESTIMATING WHERE INFLATION COULD BE, HOW HIGH RATES COULD GO BECAUSE THERE ARE STILL SIGNALS OF WEAKNESS IN THE JOB MARKET. CAROLINE:
CALLIE COX, CHIEF MARKET STRATEGIST AT RITHOLTZ WEALTH MANAGEMENT. COMING UP, WE TALKED TIKTOK. THE CEO VISITING DONALD TRUMP. HOW TRUMP COULD LOOK TO REVERSE ANY BAN. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THE EU IS INVESTIGATING TIKTOK, SUSPECTING IT DID NOT DO ENOUGH TO STOP FAKE ACCOUNTS AND FOREIGN POWERS FROM INTERFERING WITH ROMANIAN PRESIDENTIAL ELECTION. THE PROBE WILL LOOK AT WHETHER THE APP FAILED TO PREVENT BAD ACTORS FROM ITS RECOMMENDATION SYSTEM AND THE CORRECTLY LABELED POLITICAL CONTENT. STICKING WITH TIKTOK, THE CEO OF MET WITH PRESIDENT-ELECT DONALD TRUMP JUST WEEKS BEFORE THE APP WAS EXPECTED TO BE POTENTIALLY BANNED IF IT IS NOT DIVESTED IN THE U.S.
OVER NATIONAL SECURITY CONCERNS. BLOOMBERG'S ALEXANDRA LEVINE IS HERE. IT IS A WHO'S WHO AT MAR-A-LAGO BUT THE CEO IS NOTABLE CONSIDERING WHAT TRUMP SAID YESTERDAY ABOUT THE PLACE IN HIS HEART HE HAS FOR TIKTOK. ALEXANDRA: WE HAVE SEED LEGAL BLOW AFTER LEGAL BLOW FOR BOTH TIKTOK AND ITS PARENT COMPANY BYTEDANCE AS THEY'VE BEEN TRYING TO FIGHT OFF THIS LAW THAT IS SUPPOSED TO TAKE EFFECT IN JANUARY. IN PULLING OUT ALL OF THE STOPS WE SAW A SHOW AT MAR-A-LAGO AND HE IS NOT THE FIRST TECH LEADER.
WE HAVE SEEN ZUCKERBERG, WE HAVE SEEN TIM COOK, BUT THE STAKES ARE SO MUCH HIGHER WITH THE BAND JUST OVER A MONTH AWAY. THE STAKES ARE SO MUCH HIGHER FOR TIKTOK THAN THE OTHER TECH LEADERS THAT HAVE VISITED SO FAR. CAROLINE: IS BEING THROWN AT THE SUPREME COURT STORE. WHAT DO YOU THINK OF THAT ARGUMENT? ALEXANDRA: TIKTOK HAS NOW ASKED THE SUPREME COURT TO TAKE THE CASE.
THE D.C. COURT SAYS THEY WILL NOT PAUSE THE LAW FROM TAKING EFFECT AND BASICALLY UPHELD THE LAW. WHEN THE SUPREME COURT DECIDES, THAT WILL BE DOES GO DAYS BEFORE THE BAN IS SUPPOSED TO TAKE EFFECT AND YOU CAN BE SURE REGARDLESS OF WHAT THE SUPREME COURT SAYS IN JANUARY ALL OF THESE OTHER COMPANIES THAT WILL BE ON THE HOOK FOR ENFORCING IT, INCLUDING APPLE AND GOOGLE, THAT PREPARATIONS ARE DEFINITELY UNDERWAY WITH GETTING READY FOR ACTUALLY PLAYING THE APP OFF OF THE APP STORES. CAROLINE:
UNTIL WE GET INTO HOW LOGISTICALLY DIFFICULT THAT IS, GO BACK TO WHAT THE MOOD MUSIC SEEMS INTERNALLY AND EXTERNALLY WHEN YOU SEE TRUMP SIGNALING HE LIKES THE PLATFORM AND DOES NOT WANT TO OFFEND YOUNG VOTERS. ALEXANDRA: YESTERDAY WE HEARD HIM SAY I HAVE A SWEET SPOT FOR TIKTOK. YOU WANT TO BE ABLE TO TAKE WHAT HE SAYS AT FACE VALUE BUT YOU ALSO WANT TO TAKE INTO CONSIDERATION HE IS STACKING HIS TEAM WITH THE MOST OUTSPOKEN ANTI-TIKTOK CRUSADERS THAT HAVE BEEN IN CONGRESS AND ACROSS THE AMERICAN GOVERNMENT. THERE IS A BIG QUESTION ABOUT WHETHER ONCE HE IS IN OFFICE AND ONCE HE IS SURROUNDED BY ALL THESE PEOPLE THAT HAD THE KNOWLEDGE THAT GOT THE LEGISLATION AND THE LAW ACROSS THE FINISH LINE IN THE FIRST PLACE, WHETHER THEY MAY BE ABLE TO CONVINCE HIM NOT TO KEEP THE PLATFORM. CAROLINE:
ARE TO KNOW WHICH LINE TO DISCERN FROM. ALEXANDRA LEVINE, WE THANK YOU. U.S. CITIZENSHIP AND IMMIGRATION SERVICES FINALIZED NEW REGULATIONS, OVERHAULING ELIGIBILITY STANDARDS FOR THE PRIMARY VISA PROGRAM USED BY MOST TECH FIRMS. THE REGULATIONS ISSUED TODAY CODIFY
A POLICY OF DEFERENCE AND IT SANCTIONS OF H-1B VISAS. THE FIRST TRUMP ADMINISTRATION DROPPED THAT POLICY, SLOWING VISA EXTENSIONS. LET'S LOOK AT MIKE GALLAGHER. FORMER CONGRESSMAN TURNED PALANTIR'S HEAD OF DEFENSE AND HE SAYS THE U.S. DEFENSE DEPARTMENT NEEDS TO OVERHAUL ITS PROCUREMENT PROCESS FOR A NEW ERA OF MODERN WARFARE. BLOOMBERG'S LIZETTE CHAPMAN
SPOKE WITH HIM. IT FEELS AS THOUGH THIS AMERICAN DYNAMISM, THIS DEFENSE TECH EUPHORIA POSTELECTION IS JUST CONTINUING. LIZETTE: YOU ARE SPOT ON ABOUT THAT. DEFENSE TECH HAS BEEN ON AN ABSOLUTE TEAR FOR THE PAST FOUR OR FIVE YEARS. IT IS ONLY SET TO ACCELERATE NOW THAT MANY OF THESE COMPANIES HAVE REACHED A CRITICAL MASS LIKE PALANTIR, LIKE SPACE-X, AND UP AND COMERS THAT WE GET INTO INTO THIS STORY. CAROLINE: LET'S GET INTO THE STORY. HE IS A FAMOUS CHINA HAWK, JUST THINKING ABOUT WHAT WE WERE SPEAKING WITH WITH ALEXANDRA A MOMENT AGO AND HE CAN WEIGH IN ON TIKTOK. HOW YOU THINK WE WILL GET MORE
OF A STARTUP FRIENDLY DEPARTMENT OF DEFENSE IN THE U.S.? WHAT CHANGES CAN BE MADE? LIZETTE: THERE ARE SO MANY DIFFERENT CHANGES THAT PEOPLE ON THE DEMOCRAT SIDE AND THE REPUBLICAN SIDE HAVE BEEN PUSHING FOR FOR YEARS, GOING BACK EVEN A DECADE WHEN PALANTIR AND SPACE-X SUED THE U.S. GOVERNMENT FOR THE RIGHT TO COMPETE TO WIN CONTRACTS, MOVING IT UP TO DATE NOW. THERE ARE A LOT OF CHANGES TO THE PROCUREMENT PROCESS, THE PROCESS OF DECIDING WHAT THE DIFFERENT BRANCHES NEED. HOW IT SHOULD BE DESIGNED, MAKING SURE IT IS INTEROPERABLE FOR THE FUTURE, AND THEN THE PROCESS OF SELECTING BIDDERS AND SELECTING THE WINNER. THAT PROCESS, THEY WANT TO SEE
IT CONTRACTED FROM THE YEARS LONG PROCESS OF A FIGHTER JET TO SOMETHING MUCH SHORTER TIMEFRAME THAT FEDERAL REFLECTS THE TYPES OF -- THAT BETTER REFLECTS THE TYPES OF WARFARE THAT CHANGE IN TERMS OF MONTHS OR EVEN WEEKS WE HAVE SEEN WITH THE DRONES AND AI AND A LOT OF AUTONOMOUS SYSTEMS. YOU ARE LOOKING TO SHORTEN THAT. CAROLINE: IN YOUR STORY YOU HIGHLIGHT HOW ELON MUSK CALLED THE BILLERS OF -- THE BUILDERS OF F-35 WARPLANES IDIOTS. HE IS NEVER SHORT ON DESCRIPTIONS. WHAT IS INTERESTING IS THE WAY PALANTIR AND MIKE GALLAGHER ARE TRYING TO FOSTER THE STARTUP ECOSYSTEM. HOW ARE THEY DOING THAT? LIZETTE: THEY ARE REACHING OUT TO A LOT OF COMPANIES THROUGH SOMETHING THEY JUST RECENTLY EXPANDED UNDER MIKE GALLAGHER WHO LEADS GLOBAL DEFENSE NOW FOR PALANTIR. IT IS TO ENCOURAGE SOFTWARE
STARTUPS THAT WANT TO DO BUSINESS WITH THE U.S. GOVERNMENT TO APPLY THROUGH PALANTIR'S FED START PROGRAM SO PALANTIR CAN HOST THEIR SOFTWARE FOR A FEE AND YOU WITH ALL OF THE ACCREDITATION ISSUES AND THE DIFFERENT REQUIREMENTS AND THE SOFTWARE UPDATES AND MONITORING AND KEEPING THEM UP-TO-DATE AND CURRENT. THAT IS A BIG DEAL FOR A LOT OF STARTUPS WHO HAVE DIFFERENT NEEDS. EVERY AGENCY MIGHT HAVE A DIFFERENT REQUIREMENT TO COMPLY WITH. FOR A START UP WITH ONLY 20 OR
50 PEOPLE IT IS HARD TO SET UP THAT INFRASTRUCTURE TAKES A LONG TIME. THEY SAID YEARS. DOWN TO SOMETHING SHORTER THEY CAN HANDLE. THAT IS WHAT PALANTIR IS WORKING TO DO AND IT IS A COMPETITION WITH OTHER COMPANIES LIKE SECOND FRONT ALSO LOOKING TO DO THAT. CAROLINE: TRYING TO REDUCE THE COMPLIANCE HEADACHE. LET'S TALK ABOUT ELSEWHERE IN
THE ECOSYSTEM, DATA BRICKS RAISING $10 BILLION IN NEW FUNDING. THE SOFTWARE VALUATION AT $62 BILLION. DATA BRICKS SAYING IT INTENDS TO INVEST THE CAPITAL INTO NEW AI PRODUCTS AND SIGNIFICANT EXPANSION OF ITS INTERNATIONAL OPERATIONS. COMING UP, SOME TECH M&A NEWS. GRAMMAR EARLY ACQUIRING -- GRAMMARLY ACQUIRING CODA. THE CEO WILL BE JOINING US NEXT. THIS IS BLOOMBERG. CAROLINE: GRAMMARLY IS THE MAKER OF AI POWERED PRODUCTIVITY SOFTWARE AND IS THE -- THE CEO OF CODA IS SLATED TO TAKE OVER THE TOP JOB AT THE COMBINED GRAMMARLY. COMING TOGETHER.
PRODUCTIVITY TOOLS. WHAT YOU OFFER AS ONE? >> I'M EXCITED ABOUT CODA JOINING WITH GRAMMARLY. I'VE BEEN A PERSONAL USER OF THE PRODUCT FOR MANY YEARS.
I AM DRAWN TO THE INNOVATIVE APPROACH. THE REASON THIS HAPPENED IS THE LEADERS OF BOTH COMPANIES WHO GOT TOGETHER PAINTED OUR VISION FOR THE FUTURE, WHAT WE SAW WITH AI PRODUCTIVITY. IT TURNS OUT OUR VIEW WAS NEAR IDENTICAL. WE BOTH SAW THE TECHNOLOGY
EVOLVING TO USER CENTERED AI AND A FUTURE WORLD WHERE THE APPLICATION WILL NOT FEEL AS ISOLATED, SIDELOAD, RIGID. INSTEAD FOCUSED ON THE USER, ADAPTED TO EACH PERSON. WE WILL BE BUILDING A USER CENTERED AI PLATFORM OF THE FUTURE FOCUSED ON APPLICATIONS AND AGENTS FOR EVERYBODY.
CAROLINE: IS A COMPETITIVE SPACE. I HEAR AGENTS BEING NAMED BY LARGE PUBLICLY TRADED BUSINESS AND I HEAR OF APPLE TRYING TO MAKE MY EMAIL FLOW EASIER. HOW WILL YOU COMPETE AGAINST BIG TECH AS WELL AS STARTUPS? >> START WITH THE TERM AGENT. I KNOW IT IS A HOT TERM. I THINK GRAMMARLY IS THE ORIGINAL AI AGENT. ABOUT 40 MILLION USERS USE GRAMMARLY EVERY DAY.
ONE OF THE KEY THINGS ABOUT THAT AGENT IS IT WORKS RIGHT ALONGSIDE YOU. ONE OF THE BIG INNOVATIONS GRAMMARLY HAS WORKED ON IS INSTEAD OF FORCING YOU TO GO TO SOME OTHER PLACE, IT FOLLOWS YOU INTO EVERY DIFFERENT SURFACE, 500,000 APPLICATIONS. ONE OF THE TEAMS THE GRAMMARLY TEAM LIKES TO USE IS THE IDEA THEY BUILT THIS AI SUPERHIGHWAY AND IT IS THE GATEWAY TO HAVE AGENTS WORK WITH YOU IN EVERY OTHER TOOL. ONE OBSERVATION IS RIGHT NOW THERE'S ONLY ONE CAR RUNNING ON THAT HIGHWAY.
THE GRAMMARLY TOOLSET TODAY IS AMAZING BUT WHAT IT DOES IS HELP YOU WITH YOUR PROOFREADING. ONE OF THE SWILL DO IS TAKE ONE OF THE MOST POPULAR PARTS OF THE CODA PRODUCT. WE WILL TURN IT INTO AGENTS ON THE PLATFORM. INSTEAD OF INTERACTING WITH GRAMMARLY AS A PROOFREADING AGENT, YOU CAN IMAGINE THAT NOW THE SUGGESTION THAT COMES YOU WILL HELP YOU CRAFT AND SENT EMAILS, CAN HELP YOU STRUCTURE CUSTOMER CONVERSATIONS AND UPDATE YOUR SYSTEMS AND WE CAN BRING THE AGENTS RIGHT TO THE USER. THAT IS ONE OF THE MAIN THINGS WE WILL BE WORKING ON. CAROLINE: YOU SAID HOW YOUR GOALS AT THE COMPANIES WERE COMPLETELY IN LINE. IT IS THE GOAL AN IPO IN-LINE?
A NEW CTO FROM INSTACART, A NEW CFO, YOU WITH YOUR BACKGROUND AT YOUTUBE AND BIG COMPANIES AS WELL AS STARTUPS, IT LOOKS AS THOUGH YOU ARE DESTINED FOR AN IPO. >> I THINK THE GOAL IS TO BUILD AN ENDURING COMPANY. IN THIS CRAZY WORLD OF AI CHANGING EVERYTHING WE WORK ON, THERE IS A VERY SMALL LIST OF COMPANIES THAT CAN HAVE THAT MEANINGFUL PLATFORM TO BE THAT FUTURE OF AI. I THINK THE APPROACH OF GRAMMARLY AND NOW WITH CODA, WE CAN BE AT THE FOREFRONT OF THAT. WE WOULD LIKE TO BE ONE OF THOSE TOP THREE OR FOUR COMPANIES PEOPLE THINK OF WHEN THEY THINK ABOUT THE AI TOOLS. >> THANK YOU FOR COMING ON. INCOMING CEEO OF GRAMMARLY ON
THE COMBINATION OF CODA AND GRAMMARLY. CAROLINE: A PAYROLLS FIRM AND STREAMLINE THE BOOKS. THE CEO JOSH REEVES IS IN TOWN.
CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. LOOK AT YOUR MARKETS WITH ALL EYES ON THE FED TOMORROW. DATA SET -- DATA SHOWS THE ECONOMY IS GOING STRONG. CHIPMAKERS ON THE DOWNSIDE. PARTICULARLY PROFIT-TAKING AT BROADCOM. A LOOK AT WHAT IS HAPPENING IN INDIVIDUAL MOVERS WHEN IT COMES TO THE CRYPTO SPACE. BITCOIN UP AT 1.108,000.
WE'RE STILL HOLDING ON TO RECORD HIGHS. A BIT OF PROFIT TAKING AFTER A 100% RUN-UP THIS YEAR, BASICALLY A BITCOIN PROXY ENTERING THE NASDAQ ON FRIDAY. MANY FEEL THIS WILL BE THE BEGINNING OF AMENDMENT TO -- OF A MOMENTUM TRAIT. SECTORS LIKE CRYPTO ARE
CONTINUING TO OUTPERFORM FOLLOWING THE ELECTION OF TRUMP. PAYROLLS PROCESSING COMPANY GUSTO HAS A BIRD'S EYE PERSPECTIVE. IT HAS ANNOUNCED A NEW PARTNERSHIP WITH ZERO, A LEADING ACCOUNTING SOFTWARE PLATFORM. LET'S ASK THE CEO AND COFOUNDER
JOSH REEVES. JOSH: PLEASURE TO BE HERE. CAROLINE: LET'S TALK ABOUT THE PARTNERSHIP AND WHILE -- AND WHY YOU ARE FOCUSING. JOSH: WE ARE THRILLED TO SUPPORT AND SERVE OVER 3000 SMALL BUSINESSES. ONE OF THE THINGS WE REALIZED IS YOU HAVE SMALL BUSINESSES THAT WILL USE GUSTO DIRECTLY. THERE ARE A LOT OF SMALL BUSINESSES SERVED BY EXISTING PLATFORMS LIKE ZERO AND ZERO FOCUSES IN ON ACCOUNTING.
A LOT OF THESE OTHER PLATFORMS DO NOT WANT TO BUILD THINGS LIKE PAYROLL THEMSELVES AND SO WE CREATED THIS INDUSTRY CALLED EMBEDDED PAYROLL WHICH IS THE ABILITY TO FOR FOLKS LIKE ZERO TO LAUNCH THEIR OWN PAYROLL PRODUCTS POWERED BY GUSTO. WE ARE ANALOGOUS TO THAT STRIPED BUSINESS MODEL AND WE ARE EXCITED ABOUT IT BECAUSE IT IS A WAY FOR US TO REACH MORE SMALL BUSINESSES WHERE THEY ARE AT. CAROLINE: ARE THEY ULTIMATELY UNDERSERVED AT THE MOMENT? YOUR START SPACE IS A BUSY ONE. THERE ARE PLENTY OF PAYROLL STARTUPS READY TO BE THE BE-ALL AND END-ALL. HOW ARE YOU FINDING THAT SPACE? JOSH: I WAS REMINDING FOLKS THERE MORE DENTISTS OFFICE THAN TECH STARTUPS AND WE REALLY DO UPSETS OVER IT AND A LOT OF OUR PARTNERS. WE WERE READY TO PARTNER WITH A
NUMBER OF PARTNERS TO BRING MODERN PAYROLL TO WHERE THEY ARE AT IN A MORE ACCESSIBLE WAY. IT SAVES THEM TIME AND MONEY AND PREVENTS MISTAKES AND FILING ISSUES. WE HAVE BUILT 10 PLUS YEARS OF INFRASTRUCTURE TO EARN THAT CREDIBILITY AND BE WHO THESE PARTNERS WANT TO CHOOSE WHEN THEY ARE BUILDING THEIR OWN PAYROLL PRODUCTS. CAROLINE: I DON'T THINK A DENTISTS OFFICE WILL BE HIRING MANY PEOPLE ABROAD, BUT YOU BEEN FOCUSED ON MAKING IT EASIER TO HIRE INTERNATIONALLY. WE ARE GETTING THE NEWS H-1B'S
ARE GOING TO BE OVERHAULED BY THE CURRENT ADMINISTRATION. HOW ARE PEOPLE'S PROPENSITY FOR HIRING ABROAD AT THE MOMENT? JOSH: WITH GUSTO YOU HAVE THE ABILITY TO HIRE CONTRACTORS AND EMPLOYEES INTERNATIONALLY. THERE IS BEEN MORE RESIDENTS ON THE CONTRACTOR SIDE. MANY PRODUCTS WE ARE EXPANDING INTO PUMP INTERNATIONAL IS ONE. WE OFFER FUNCTIONALITY AROUND TIME TRACKING, BUSINESS INSURANCE. IT IS HARD TO RUN AND START A
SMALL BUSINESS AND OUR JOB IS TO MAKE THAT EASIER. CAROLINE: IT IS HARD TO RUN A STARTUP, EVEN AS SUCCESSFUL AS YOURS. YOU'VE NOT RAISED MONEY SINCE 2021. LOOKING AT YOUR PROFITABILITY YOU DO NOT NEED TO. WHAT IS THE PRESSURE ON YOU TO IPO? ARE YOU FINDING THE COMPETITIVE MODE VERSUS A DEAL IS GETTING HARDER OR IS IT FINE? JOSH: WE WELCOME THE COMPETITION.
WE WANT TO BE THE BEST PRODUCT IN THE MARKET AND WE BELIEVE WE ARE. WE ARE JUST ONE DECADE INTO THE JOURNEY. AT SOME POINT IN THE FUTURE WE WILL BE PUBLIC. NOTHING TO SHARE THERE. OUR OBSESSION IS HOW DO WE GIVE THE BEST POSSIBLE EXPERIENCE TO THOSE CUSTOMERS AND DO THAT THROUGH OUR ACTIONS AND ALSO THROUGH THE PARTNERSHIPS WE SIGN WITH FOLKS LIKE ZERO. JOSH: -- CAROLINE: AND THE TALENT YOU HAVE -- WHEN YOU HAVE SOMETHING ON YOUR MIND IS IT TEND TO BE ABOUT TALENT ACQUISITION OR AI? JOSH: MOSTLY ABOUT TEAMBUILDING. WE HAVE A CASH FLOW POSITIVE AND SOMETHING WE ARE DELIVERING TRUE VALUE FOR, WE ARE BEING AGGRESSIVE REINVESTING THAT CAPITAL INTO BUILDING NEW PRODUCTS AND BUILDING ADDITIONAL SERVICES FOR OUR CUSTOMERS TO USE.
THAT USUALLY MEANS TEAMBUILDING AND I AM DOING A LOT OF TIME INTERVIEWING CANDIDATES. CAROLINE: AS IS THE LIFE OF THE CEO. THANKS FOR STOPPING BY. JOSH IS THE CEO OF GUSTO. COMING UP, WE WILL TALK
CONSUMER INVESTING IN 2025. LESS A CONVERSATION WITH MINNESOTA SENATOR AMY KLOBUCHAR ALL ABOUT ANTITRUST. YOU DO NOT WANT TO MISS IT. THIS IS BLOOMBERG TECHNOLOGY. THE TERMINAL AS WELL AS ONLINE ON APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG. CAROLINE: I WANT TO TAKE A LOOK AT CONSUMER INVESTING TRENDS AFTER RETAIL SALES LOOKED SO GOOD TODAY. WHAT WERE THEY LOOKING LIKE IN
2025? BAM VENTURES WILL JOIN US. THE FIRM BOASTS VENTURES LIKE NERDWALLET AND ONE VERY. MANAGING DIRECTOR JOINS US NOW FOR MORE. IT IS INTERESTING THAT MAY BE CONSUMER BETS, WE KNOW THEM BECAUSE WE USE THEM BUT PERHAPS THEY'VE NOT GOT THE VALUATION OF THE SEMICONDUCTOR. WHAT DOES CONSUMER RESILIENCY LOOK LIKE? >> FIRST OFF GOOD MORNING AND I WANTED TO THANK YOU FOR HAVING ME. FOR THOSE WHO MAY NOT BE FAMILIAR WITH ME AS CAROLINE SAID I AM THE MANAGING DIRECTOR AT BAM VENTURES.
WE ARE BASED IN LOS ANGELES AND BUILT BY THE FOUNDERS OF BILLION-DOLLAR PUBLIC COMPANIES LIKE LEGALZOOM. WE HAD THE PRIVILEGE OF INVESTING EARLY AND HOUSEHOLD NAMES LIKE SWEET GRAINS, SNAP, AND NERDWALLET. TO YOUR QUESTION, IT IS INTERESTING BECAUSE I THINK VALUATIONS ARE WHAT CATCH HEADLINES. WE OFTEN UNDERESTIMATE THE INPUT IT TAKES TO GET TO THOSE NUMBERS AND ALSO THE EQUITY BREAKDOWN. A COMPANY THAT EXITS FOR $5 BILLION IS AN EYE-POPPING AMOUNT BUT WHEN YOU LOOK AT THE CAP TABLE AND YOU SEE A FOUNDER OWNED 2% OF THAT BUSINESS THEY MADE LESS THEN A COMPANY OR THE FOUNDER OWNED 185% OF A $500 MILLION EXIT.
THE VALUATIONS ARE OFTEN, PARTICULATE ON THE BRAND SIDE MAY NOT BE THERE. THEY DO HAVE THAT POTENTIAL. THE EQUITY OUTCOMES FOR THE INVESTORS AND THE FOUNDERS ARE OFTEN MUCH BETTER. CAROLINE: YOUR LEGAL BACKGROUND I SURE YOU'RE MAKING SURE THEY OBTAIN A LOT OF HOLDING.
WHAT ABOUT FINDING THESE DIAMONDS IN THE ROUGH, HOW ARE YOU DECIDING THIS IS A STARTUP, A CONSUMER FACING STARTUP THAT IS AT A PIVOT POINT ABOUT TO GO UP AND TO THE RIGHT? >> WE SAY WE HAVE TO LOVE THE FOUNDER AND NOT HATE THE IDEA. IT IS TRULY ABOUT THE FOUNDERS. WE LOVE WHAT WE CALL THE SILENT ASSASSINS. THE FOLKS THAT ARE FOCUSED ON BUILDING THEIR BUSINESS WHO KNOW THEIR CUSTOMER AND KNOW HOW PEOPLE OPERATE. THERE ARE A LOT OF THINGS THAT WE THEORETICALLY WOULD LIKE TO EXIST OR WOULD LIKE TO DO. I WOULD LOVE TO BE THE FITTEST WOMAN IN THE WORLD BUT MAYBE I WILL NOT PUT THE EFFORT AND TIME INTO AN EXERCISE REGIME OR COUNTING MY NUTRIENTS.
THE FOUNDERS WHO UNDERSTAND HOW PEOPLE LIVE AND BEHAVE AND WHAT GETS THEM TO A PURCHASE DECISION IS WHAT WE ARE LOOKING WORK. CAROLINE: DO THEY DO THAT WITH EQ OR WITH DATA? WHAT YOU WANT TO SEE WHEN ONE FOUNDER YOU DON'T HATE THE IDEA OF COMES AND PITCHES YOU? SHAMIN: I THINK IT IS BOTH. MORE IMPORTANTLY IT IS AROUND UNDERSTANDING NOT ONLY THEIR CONSUMER BUT THEMSELVES AS WELL. THERE ARE INCREDIBLY DATA-DRIVEN. THEY ARE INCREDIBLY BRAND DRIVEN AND THEY HIRE A TEAM WHO UNDERSTANDS OPERATIONAL EFFICIENCIES. CAROLINE: YOU HAVE BEEN IT ANGEL INVESTING FIRM FOR MORE THAN 17 YEARS. YOU'VE HAVE IN YOUR SEAT AT BAM
VENTURES FOR A NUMBER OF YEARS. WHAT ARE VALUATIONS LIKE AT THIS MOMENT? HOW ARE YOU LOOKING INTO 2025 AND THINKING WHETHER THIS IS THE RIGHT SORT OF CHECKS TO BE WRITING AND THE RIGHT VALUATION? SHAMIN: I THINK VALUATIONS ARE VERY SPECIFIC TO THE SECTORS. RIGHT NOW YOU HEAR ABOUT THE BUZZWORDS OF AI OR CRYPTO.
THEY CAN COMMAND A HAVE DEVALUATION. THEY ARE ALSO VERY CAPITAL-INTENSIVE. TO THE POINT I WAS MAKING AT THE BEGINNING AROUND THE INPUTS AND THE OUTPUT, A LOT OF TIMES FUNDS FALL BACK INTO VALUATION BASED ON HOW MUCH THE NEED TO DEPLOY AND IT MAY BE DETACHED FROM HOW MUCH A COMPANY ITSELF IS WORTH. IF YOU LOVE A PARTICULAR CATEGORY AND YOU GIVE THEM $10 MILLION THE NEED TO BACK INTO A VALUATION FROM THERE AS OPPOSED TO INVESTING IN A COMPANY THAT MAY NOT HAVE MADE AS MUCH. CAROLINE: IT IS INTERESTING YOU SAID CRYPTO IS THE BUZZ WORD. BITCOIN HAS BEEN THE BUZZ WORD, MICROSTRATEGY HAS BEEN THE BUZZ WORD.
ARE WE SEEING MORE FOUNDERS COMING TO YOU WITH A WEB THREE ADJACENT COMPANY OR A CONSUMER FOCUS THAT IS BUILDING IN WEB THREE? ARE WE AT THAT STAGE OF THE CYCLE? SHAMIN: WE SEE A LOT OF FOUNDERS WHO HAVE A WEB THREE COMPONENT. I SEE IT HAVING COME BACK INTO VOGUE. LIKE I MENTIONED AI IS STILL THE MODE DU JOUR. CAROLINE: WHEN YOU ARE A CONSUMER FOUNDER IS IT YOU WANT TO CAI BOOSTING PRODUCTIVITY INTERNALLY RATHER THAN TRYING TO BACK THEMSELVES INTO A GENERATIVE AI BUSINESS? SHAMIN: BUT WE LOOK FOR AS INVESTORS OR WHAT FOUNDERS ARE PURSUING? CAROLINE: WHAT ARE YOU SEEING AND WHAT ARE YOU WANTING? SHAMIN: WHAT WE ARE WANTING, THE WAY WE THINK ABOUT AI IS THE WAY WE THINK ABOUT THE INTERNET. IF A FOUNDER CAME TO US AND TOLD US THEY ARE BUILDING AN INTERNET COMPANY I THINK IT IS UBIQUITOUS, IT IS NECESSARY, IT IS THE FUTURE. FOR US WE ARE LOOKING AT THE
OTHER ELEMENTS THAT WILL MAKE YOU A SUCCESSFUL BUSINESS, YOUR DISTRIBUTION, YOUR TEAM, SALES AND MARKETING. THE AI FOR US IS NOT THE SOLE DETERMINANT OF WHETHER A COMPANY IS ATTRACTIVE OR NOT. I THINK FOUNDERS ARE CATCHING ON TO THAT AS WELL. THERE WAS A TIME WERE JUST ADDING AI WAS CHANGING THINGS IN TERMS OF ACTIVE MISS, BUT I THINK AT THIS POINT FOUNDERS ARE STARTING TO REALIZE WE NEED TO SHOW SOME DIFFERENTIATION BEYOND THAT. CAROLINE: WELL SAID. SHAMIN WELCH. LET'S TALK ABOUT SENATE JUDICIARY SUBCOMMITTEE CITY HERE ON ANTITRUST AND LEGAL EXPERTS.
LET'S GET TO KAILEY LEINZ IN WASHINGTON. KAILEY: I WOULD LIKE TO WELCOME OUR GLOBAL BLOOMBERG TELEVISION AND RADIO AUDIENCE AS I AM JOINED IN CONVERSATION BY DEMOCRATIC SENATOR AMY KLOBUCHAR OF MINNESOTA. THANK YOU FOR BEING HERE. YOU ARE LEADING A SUBCOMMITTEE HEARING TODAY TITLED CONTINUING A BIPARTISAN PATH FORWARD FOR ANTITRUST ENFORCEMENT AND REFORM. I WONDER IN WHAT WILL BECOME JANUARY A REPUBLICAN CONTROLLED CONGRESS, WHAT THAT BIPARTISAN PATH LOOKS LIKE? SEN KLOBUCHAR: THANKS FOR HAVING ME ON. I THINK WHAT YOU WOULD IN THIS
AREA OF ANTITRUST YOU'VE SEEN SOME BROAD BIPARTISAN AGREEMENT ON A NUMBER OF THESE CASES. FOR INSTANCE, THE GOOGLE CASE STARTED UNDER THE TRUMP ADMINISTRATION, THE FIRST TRUMP ADMINISTRATION AS DID THE FACEBOOK CASE. GOOGLE WAS AT THE JUSTICE DEPARTMENT.
THEN IT PROCEEDED THROUGH THE BIDEN ADMINISTRATION. THE BIDEN ADMINISTRATION ALSO BROUGHT MAJOR CASES AGAINST TICKETMASTER AND OTHER COMPANIES. YOU HAVE SEEN A MORE AGGRESSIVE ANTITRUST ENFORCEMENT OVER THE LAST FEW YEARS. NOW YOU HAVE A NEW APPOINTEE AND AT LEAST ONE OF THEM IS THE BELIEF THAT THE JUSTICE DEPARTMENT WITH SOME FORMER DEMOCRATIC ANTITRUST ENFORCER SAID SHE KNOWS WHAT SHE IS DOING.
I AM LOOKING FORWARD TO MEETING WITH HER. I AM HOPING WE WILL CONTINUE THOSE CASES. I LOVE COMPETITION AND I LIKE CAPITALISM. THAT IS WHY AM FOR ANTITRUST ENFORCEMENT. KAILEY: WHAT ABOUT IN DREW FERGUSON? DO YOU THINK HE LOVES THE ISSUE OF COMPETITION THE SAME WAY YOU DO? YOU TRUST THE FTC WILL BE IN GOOD HANDS? SEN. KLOBUCHAR: I AM LOOKING FORWARD TO MEETING
WITH HIM. INTERESTINGLY ENOUGH WE DO NOT CONFIRM THAT POSITION. HE WAS ALREADY ON THE COMMISSION. THERE IS A NEW MEMBER BEING APPOINTED. I WILL NOTE HE WROTE A PIECE ON THE BREAKUP OF TICKETMASTER IN WHICH HE FAVORED THAT.
I THINK WITH ANTITRUST, BECAUSE AT ITS CORE IT IS ABOUT COMPETITION AND IT HAS BEEN LAGGARD FOR MANY DECADES AND AS A RESULT WE ARE SEEING MORE CONSOLIDATION. IT IS NOT THAT BIG COMPANIES ARE BAD, IT IS SOMETIMES WHEN YOU HAVE NO COMPETITION YOU START GETTING LESS INNOVATION, MORE HIGH PRICES, ETC.. I'M EXCITED ABOUT THIS. SENATOR LEE AND I ARE DOING THIS TOGETHER. SENATOR GRASSLEY AND I HAVE PASSED OUR BILL TOGETHER. I THINK -- SENATOR CRUZ AND I DID A JOINT INTERVIEW THIS MORNING AND A BILL WE HAVE GONE THROUGH THE SENATE ON TAKING ONLINE PORNOGRAPHY INTERNET. DIFFERENT THAN ANTITRUST, BUT YOU WILL CONTINUE TO SEE BIPARTISAN WORK ON TAX. KAILEY: I AM GLAD YOU BROUGHT UP THE
TAKE IT DOWN ACT WHICH YOU COSPONSORED WITH SENATOR CRUZ. IS THAT TRYING TO TACKLE SYMPTOMS OF AN UNDERLYING DISEASE RATHER THAN THE DISEASE ITSELF, AND THE DISEASE I'M REFERRING TO IS UNREGULATED ARTIFICIAL INTELLIGENCE? SEN. KLOBUCHAR: I WOULD LIKE TO PUT IN SOME RULES OF THE ROAD ON AI. THIS BILL IS BROADER THAN JUST
AI PORNOGRAPHIC PICTURES, IT IS ALSO REAL PICTURES AS WELL AS AI CREATED ONES. WE ARE NOW SEEING ONE IN 12 AMERICANS SAYING THEY HAVE BEEN A VICTIM OR KNOW SOMEONE THAT IS A VICTIM OF THIS. WE HAVE HAD 20 SUICIDES IN ONE YEAR OF YOUNG KIDS. 20 SUICIDES BECAUSE SOMEONE COME A GIRLFRIEND OR BOYFRIEND, PUT UP THEIR PHOTO, THEY WERE EMBARRASSED THEIR FRIENDS AND FAMILY WOULD KNOW AND THEY KILL THEMSELVES. THESE ARE FBI STATISTICS.
SENATOR CRUZ AND I CAME TOGETHER. THE BILL MAKES IT CLEARLY A CRIME TO USE PORNOGRAPHIC IMAGERY OF SOMEONE ELSE, WHETHER IT IS AI CREATED OR REAL. NUMBER TWO, THE PLATFORMS HAVE TO TAKE IT DOWN. THAT IS WHY IT IS CALLED THE
TAKE IT DOWN ACT. THEY TAKE DOWN OTHER VIOLATIONS OF INTELLECTUAL PROPERTY. THE FACT THAT PEOPLE CAN BE ABUSED IN THIS WAY TO THE POINT OF COMMITTING SUICIDE AND IN ONE CASE I KNOW OF SENATOR CRUZ ACTUALLY HAD TO CALL SNAPCHAT TO GET THE IMAGE DOWN AFTER MONTHS OF THIS VICTIM FROM HIS STATE DEALING WITH THAT. THAT IS JUST WRONG. KAILEY: I WOULD LIKE TO ASK YOU ABOUT ANOTHER ONE OF YOUR COLLEAGUES, SENATOR ELIZABETH WARREN OF MASSACHUSETTS. SHE WROTE A LETTER TO PRESIDENT-ELECT DONALD TRUMP ASKING FOR FIRM CONFLICT OF INTEREST RULES TO BE PUT IN PLACE RELATED TO ELON MUSK, WHO HAS BEEN TAPPED TO CO-LEAD THIS NEW DEPARTMENT OF GOVERNMENT EFFICIENCY.
HAVE YOU HAD ANY CONVERSATIONS WITH SENATOR WARREN ABOUT THAT WERE AT THE LEAST YOU SHARE IN THAT SENTIMENT? SEN. KLOBUCHAR: I HAVE NOT SEEN THIS LETTER BUT I WILL SAY I BELIEVE WE NEED CONFLICT OF INTEREST RULES IN PLACE FOR PEOPLE WHO ARE MAKING MAJOR DECISIONS IN THE GOVERNMENT. THAT IS WHAT PEOPLE HAVE DONE VOLUNTARILY FOR YEARS NOW.
YOU HAVE A NUMBER OF VERY WEALTHY PEOPLE GOING INTO THE TRUMP ADMINISTRATION. THERE HAVE BEEN WEALTHY PEOPLE UNDER DEMOCRATIC ADMINISTRATIONS. YOU HAVE A NUMBER OF THEM COMING IN. WE NEED THE CONFLICT RULES ENFORCED AND WE NEED TO KNOW THE DECISIONS THEY ARE MAKING ARE NOT FOR THEIR OWN INTERESTS BUT THE INTERESTS OF THE AMERICAN PEOPLE. I WOULD HOPE PRESIDENT-ELECT TRUMP AGREES. KAILEY: PRESIDENT-ELECT TRUMP MET YESTERDAY WITH THE CEO OF TIKTOK AFTER SITTING AT A NEWS CONFERENCE HE HAS A WARM SPOT IN HIS HEART FOR TIKTOK WHEN ASKED IF HE WOULD LIKE TO SEE THE BAND GO THROUGH.
GIVEN THE ISSUES WE HAVE ALREADY DISCUSSED AROUND TECHNOLOGY AND WHAT IS PROPAGATED ON THESE PLATFORMS, WHAT IS YOUR VIEW ABOUT WHETHER THAT BAND SHOULD BE ENFORCED IN JANUARY? SEN. KLOBUCHAR: THIS CAME OUT OF CONGRESS WITH STRONG BIPARTISAN SUPPORT AND THERE ARE TWO AVENUES. ONE IS THEY CAN FOLLOW THE LAW AND DIVEST AND FIND A BUYER FOR THE COMPANY. THE SECOND IS THEY STILL ARE APPEALING TO THE SUPREME COURT. MY VIEW HAS BEEN WE SHOULD HAVE RULES OF THE ROAD IN PLACE FOR ALL PLATFORMS. I'VE BEEN WAY OUT THERE IN TERMS OF GETTING NOT JUST PORNOGRAPHY OFF THE INTERNET BUT OTHER DIFFICULT THINGS THAT ARE ON THERE RIGHT NOW AND WE SHOULD HAVE A BETTER POLICING OF THAT AND PEOPLE SHOULD HAVE THE RIGHT TO PROTECT THEIR OWN INTELLECTUAL PROPERTIES AND ALSO THAT WE SHOULD HAVE ANTITRUST ENFORCEMENT. YOU CANNOT JUST HAVE GOOGLE
WITH A 90% MARKET SHARE ON THE SEARCH ENGINE AND NOT HAVE ANY COMPETITION AND THEN ALLOW THEM TO SELF PREFERENCE AS WE SEE WITH AMAZON AND OTHER COMPANIES THEIR OWN PRODUCTS AT THE TOP. THAT IS WHY THE NFIB, NOT A LIBERAL ORGANIZATION, THE NATIONAL ORGANIZATION OF INDEPENDENT BUSINESSES IS SUPPORTING THE BILL I HAVE WITH SENATOR GRASSLEY WHO PUTS RULES IN PLACE FOR COMPETITION ON THE INTERNET. KAILEY: DEMOCRATIC SENATOR AMY KLOBUCHAR OF MINNESOTA JOINING US LIVE FROM CAPITOL HILL. THANK YOU SO MUCH.
I WILL SEND IT BACK TO YOU IN NEW YORK. CAROLINE: KAILEY LEINZ, WE THANK YOU. SENATOR AMY KLOBUCHAR FROM MINNESOTA. LET'S BREAK ALL THIS DOWN,
POLITICS INTERSECTING WITH TECHNOLOGY WITH BLOOMBERG'S MIKE SHEPPARD AND GO TO THE BIPARTISAN NATURE OF ANTITRUST FOCUS. IT DOES FEEL MANY INTERPRET THE TRUMP ADMINISTRATION IS MORE BUSINESS FRIENDLY BUT HE HAS PUT PEOPLE IN SEATS THAT HAVE CRITICAL EYES ON COMPANIES SUCH AS GOOGLE. MIKE: THAT HAS BEEN OUR SENSE AS WE HAVE REPORTED OUT TRUMP'S SELECTIONS FOR THESE KEY POSITIONS INCLUDING THE HEAD OF THE ANTITRUST DIVISION AT THE ANTITRUST DEPARTMENT AND THE PERSON WHO WOULD SUCCEED LINA KHAN AT THE FEDERAL TRADE COMMISSION AND NOW WE HAVE HEARD FROM AMY KLOBUCHAR HERSELF WHO HAS REALLY SPEARHEADED EFFORTS IN CONGRESS AND IN THE SENATE ON THIS AREA OF COMPETITION ENFORCEMENT AND SHE IS SIGNALING OPTIMISM THAT THE INCOMING TRUMP TEAM WILL NOT DIVERT TOO MUCH FROM THE PLAYBOOK WHEN IT COMES TO CRACKING DOWN ON AREAS, ESPECIALLY BIG TECH WHERE WE HAVE SEEN A LOT OF CONCENTRATION OF MARKET POWER. WE SAW HER REFERENCE GOOGLE AT THE END OF HER REMARKS TO OUR COLLEAGUE KAILEY LEINZ. CAROLINE: AND SAYING SHE IS LOOKING FORWARD TO MEETING WITH ANDREW FERGUSON AS WELL.
I WANT TO SHIFT MORE BROADLY INTO THE CONTEXT OF TECHNOLOGY IN THE NEXT ADMINISTRATION. THERE IS A MERRY-GO-ROUND AT MAR-A-LAGO OF ALL OF THE KEY NAMES IN TECH. WE KNOW JEFF BEZOS IS DUE. IS IT A KEY FOCUS ON TECHNOLOGY IN THE FUTURE? MICHAEL: IT HAS BEEN A PARADE OF THESE HIGH-PROFILE CEOS GOING IN TO MEET WITH PRESIDENT-ELECT DONALD TRUMP TO HAVE THEIR CASES HEARD AND TO HEAR A LITTLE BIT FROM HIM THEMSELVES SO THEY UNDERSTAND A LITTLE BIT HOW TO RELATE WITH HIM. THINK OF IT AS CORPORATE DIPLOMACY POTATOES CO-WAY STREET. TRUMP LIKES TO EXERCISE THAT
FUNCTION OF HIS OFFICE TO REACH OUT TO CEOS IN THE WAY A PRESIDENT WOULD ALSO REACH OUT TO HEADS OF STATE. HE LIKES THAT KIND OF ENGAGEMENT. WE SAW IT IN ACTION SO MUCH DURING HIS FIRST TERM IN OFFICE AND NOW WE ARE SEEING SIGNS AS HE PREPARES TO RETURN TO THE WHITE HOUSE. FOR THESE COMPANIES IS A CHANCE
FOR THEM TO BE HEARD, ESPECIALLY FOR TIKTOK, THE COMPANY IS FACING AN EXISTENTIAL QUESTION OF A BAN THAT COULD TAKE EFFECT AS SOON AS JANUARY 19. CAROLINE: THAT IS AN EXISTENTIAL QUESTION FOR TIKTOK'S. ARE THERE COMPANIES SAYING MIKEY WORRY IS TALENT AND ACCESS TO TALENT? ONE OF THE MOST SEARCH STORIES IS ABOUT H-1B VISAS, HOW THE CURRENT U.S. IMMIGRATION SERVICES ARE BASICALLY MAKING FINAL CHANGES TO MAKING IT EASIER AND MORE STREAMLINED. IS THAT SOMETHING THAT MIGHT BE UPENDED BY THE NEXT ADMINISTRATION? WHAT IS HIRING GOING TO LOOK LIKE? MICHAEL: THERE IS A RISK OF THAT HAPPENING. THE CONCERNS THAT TECH
COMPANIES IN PARTICULAR IN REFERENCE TO THE H-1B PROGRAM, THERE ARE ONLY 85,000 VISAS AVAILABLE EVERY YEAR. THEY ARE COVETED, THE COMPETITION IS STIFF FOR THEM. TECH COMPANIES NEED THAT WORKFORCE OF SKILLED WORKERS WITH ADVANCED DEGREES TO PROPEL THEIR DEVELOPMENT OF THE LATEST TECHNOLOGIES AND ANY CHANGE TO THAT PROGRAM IS A DISTURBANCE IN THE FORCE AND IT RISKS IMPEDING THEIR PROGRESS. DURING LAST TRUMP ADMINISTRATION THEY DROPPED A POLICY KNOWN AS PRIOR DEFERENCE WHICH HELPED GREASE THE SKIDS FOR SOME OF THESE APPLICATIONS IN THIS POLICY WAS JUST CODIFIED AND REINSTATED WITH RULES THAT WERE FINALIZED TODAY BY THE CUSTOMS AND IMMIGRATION SERVICE AND THE DEPARTMENT OF HOMELAND SECURITY. WHAT WE WANT TO SEE, WHAT WE ARE LOOKING FOR GOING AHEAD AS THE TRUMP TEAM TAKES OFFICE IS WHAT WILL THEY DO THERE AS THEY TRY TO ADDRESS THE BROADER QUESTION AT THE BORDER. CAROLINE: MIKE SHEPPARD BRINGING US ALL TOGETHER FOR US FROM WASHINGTON.
THANK YOU VERY MUCH. THAT DOESN'T FROM THIS ADDITIONAL BLOOMBERG TECHNOLOGY. DO NOT FORGET TO CHECK OUT OUR PODCAST. FIND IT ON THE
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