China Tech In Bear Market, Google's Chrome Future | 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. CHINESE TECH STOCKS ENTER A THEIR MARKET. BAIDU UNDER PRESSURE.
AMAZON BOOSTS ITS STAKE IN ANTHROPIC, INVESTING ANOTHER $4 BILLION IN THE OPENAI RIVAL. IN THE CEO OF BINANCE DISCUSSES BITCOIN AND THE IMPACT OF A TRUMP WHITE HOUSE. FIRST, WE CHECK OUT THE MARKETS. THE LITTLE BIT OF CAUTION AND SENSITIVE TRADING ON THE LAST DAY OF THE WEEK. WE ARE UP .10% AND THE NASDAQ 100 IS UP.
WE ARE LOOKING AT THE GOLDEN DRAGON IN CHINA AND WE HAVE SEEN THAT THE TRADE IS ON THE DOWNWARD TRAJECTORY. AND WE ARE LOOKING AT THE TECH FOCUSED U.S. ETFS AND YOU CANNOT REALLY CHECK HOW CHINESE TECH NAMES ARE DOING. IF YOU LOOK AT THE NASDAQ GOLDEN DRAGON WE ARE UP 1.8%. WE WANT TO DIG INTO THE ANXIETY. WE HAVE BAIDU AND PDD REALLY ON THE LOWER SIDE DUE TO THEIR EARNINGS AND WEAKNESS. THEY SOLD OFF AND WE ARE UP BY 2.6% ON THE U.S. ADR AS WELL UP -- OFF BY 5%.
ALL OF THIS AS WE SEE THE PDD PLEDGING TO KEEP INVESTING AMID RISING COMPETITION HOME AND ABROAD AND IT IS COMPETITION IN A CHINESE ECONOMY THAT CONTINUES TO WEAKEN. JUST TALK US THROUGH WHAT SEEMS TO BE EVER MOUNTING PRESSURE ON CHINESE TECH NAMES. >> MAYBE WE CAN START TO BAIDU AND THE BIGGEST SEARCH ENGINE OPERATOR AND CLEARLY A TOUGH CORRIDOR BECAUSE WE SAW THE REVENUE DECLINED BY 3% WHICH WAS THE WEAKEST GROWTH PACE IN MORE THAN TWO YEARS AND THE WEAKNESS WAS DRIVEN BY THE CORE BUSINESS OF ONLINE ADVERTISING AND MARKETING THAT DECLINED REVENUE BY 5% IN THE QUARTER AND THE CEO ON THE EARNINGS STATEMENT SAID THAT THE MACRO HAS BEEN WEEK WHILE THE CEO -- WHILE THE CFO ACKNOWLEDGED THAT DESPITE THE BEIJING STIMULUS MEASURES IN LATE SEPTEMBER, CONSUMERS ARE CAUTIOUS AND ADVERTISER SPENDING IS SUBDUED. THERE IS A SILVER LINING. THE AI BUSINESS IS STILL GROWING REVENUE BY DOUBLE DIGITS. AND THERE ARE SOME CONCERNS ABOUT MONETIZATION BECAUSE THOSE AI DRIVEN SORT -- SEARCH QUERIES ARE MONETIZED AT A LOWER RATE THAN GENERAL QUERIES.
AND COMPETITION IS STEPPING UP WITH OTHER PLATFORMS LIKE -- GAINING MORE USER ATTENTION. CAROLINE: LET US TALK ABOUT THE COMPETITION FOR PDD. BOTH OF THESE COMPANIES, PB -- PDD IN PARTICULAR HAS TRYING TO ME -- HAS BEEN TRYING TO MAKE INROADS INTO A U.S. CONSUMER AND PERHAPS THE FACT THAT U.S.
INVESTORS ARE LESS LIKELY TO ACCESS THESE INVESTMENTS. LOOK AT THE GOVERNOR OF TEXAS TRYING TO LIMIT THAT. THAT SEEMS TO SEND A SHIVER DOWN THE SPINE. HENRY: THAT HIT INVESTOR SENTIMENT AGAIN FOR THE TRADING. AS TO PDD, THE COMPETITION IS STEPPING UP WITH DOMESTIC BUSINESS IN TERMS OF JD AND ALIBABA BUT ALSO OVERSEES FOR TEMU BECAUSE AMAZON IS STEPPING UP ITS GAME.
THE COMPANY SAID FOR A SECOND QUARTER IN A ROW THAT IT NEEDS TO STEP UP INVESTMENTS TO KEEP UP ITS GAME VERSUS COMPETITORS. AND WE HAVE BEEN SEEING THIS AND THE RESULTS AS WELL BECAUSE THE MARGINS HAVE BEEN TRENDING DOWNWARDS FOR THIS QUARTER. AND THESE TWO REIMBURSE MORE IN TERMS OF MERCHANTS GIVING MERCHANTS MORE PERKS AND REIMBURSING MERCHANTS FOR FOOD AND COSTS AND LOWERING TECHNOLOGY SERVICE COSTS AS WELL. CLEARLY, IT IS REIMBURSING THE MARGINS GOING DOWN AND IT NEEDS TO KEEP UP GROWTH TO INVEST MORE AND THAT HAS HIT INVESTOR SENTIMENT. CAROLINE: LET US BROADEN OUT THE CONVERSATION. THE CHIEF INVESTMENT OFFICER IS WITH US AND WE WANT YOUR READ ACROSS GENERALLY SENTIMENT AROUND INTERNATIONAL TECHNOLOGY NAMES.
WHEN YOU LOOK AT CHINA, WITH THE ETF THAT YOU MANAGE THERE ARE SOME COMPANIES WITH EXPOSER TO -- EXPOSURE TO CHINA. HOW DO YOU FEEL ABOUT THE COMPANY AND CONSUMER? >> WE DO THE STOCK SELECTION PRETTY CAREFULLY AND WE LOOK AT WET THEY ARE EXPOSED TO AND RATHER THAN MAKING A MACRO CALL, WHETHER THEY HAVE COMPETITOR PRESSURE THERE. AND A LOT OF THE STOCKS WE INVESTED BROADLY SPEAKING ARE DRIVEN BY SECULAR TAILWINDS. REGARDLESS OF ECONOMIC OUTLOOKS
WE BELIEVE THE SELECTION THAT WE HAVE WILL ENJOY SUSTAINED GROWTH TAILWINDS AND THAT IS HOW WE DO IT, ONE BY ONE. CAROLINE: WHEN YOU LOOK AT THE ONE BY ONE TAILWINDS, HOW MUCH DO YOU HAVE TO BAKE IN THE ANXIETY AROUND GEOPOLITICAL TENSION OF A NEW ADMINISTRATION THAT MAKES RELATIONSHIPS WITH CHILD -- WITH CHINA HARDER? LEI: WE CERTAINLY ARE NOT HERE TO MAKE ANY PREDICTIONS ABOUT POLITICAL OUTCOMES OR POLICIES, THAT IS DIFFICULT FOR US TO DO. WE DO TAKE INTO CONSIDERATION IN TERMS OF RISK FACTORS IF THEY ARE EXPOSED AND WE CERTAINLY WILL INCREASE THE DISCOUNT RATE WHEN WE THINK ABOUT THE VALUATION. AGAIN IT GOES TO ONE BY ONE AND SEE HOW THEY ARE POSITIONED.
CAROLINE: WHEN WE ARE TALKING THEREFORE MORE THEMATICALLY, ARE THE TAILWINDS FOR YOU ALL ABOUT ARTIFICIAL INTELLIGENCE AND WHETHER OR NOT A PARTICULAR CHIPMAKER HAS AN EXPOSURE TO SELLING HIGH END CHIPS INTO CHINA. THE TAILWIND IS SO STRONG THAT YOU CAN STILL STICK BY THE NAMES. I KNOW YOU CANNOT GO INTO INDIVIDUAL SELECTIONS THAT WE HAVE BEEN TALKING A LOT ABOUT NVIDIA, FOR EXAMPLE. LEI: WE LOOK AT THE OVERALL EXPOSURE SO CHINA IS PART OF IT BUT NOT THE SOLE DRIVER. WHEN WE LOOK AT IT WE CAN SEE NVIDIA FOR EXAMPLE, CHINA IS PART OF THE BUSINESS BUT IT IS NOT THE MAJORITY. THE OTHER PART OF THE BUSINESS IS SO STRONG THAT WE CAN DO ANALYSIS WHETHER OR NOT CHINA GOES UP THERE DOWN AND WHAT DOES IT DO OVERALL.
GIVEN THE SUPPLY AND DEMAND CONSTRAINT, IT CAN EASILY BE REALLOCATED TO OTHER AREAS. THAT IS HOW WE THINK ABOUT IT. OVERALL, GEOGRAPHIC EXPOSURE. CAROLINE: LET US TALK ABOUT THE HYPE CYCLE AND THE HUGE VALUATIONS BAKED INTO AI EXPOSED NAMES. ARE YOU COMFORTABLE AND FEEL THAT THE DEMAND IS SO STRONG AND SUPPLY ISSUES ARE LIMITED THAT YOU CAN CONTINUE TO PLOW MONEY INTO COMPANIES THAT HAVE RISEN SO FAR AND FAST ALREADY? LEI: ON THE VALUATION FRONT, WE CARE ABOUT LONG TERM, CAN THEY SUSTAIN THE PROFIT POOL. THAT IS WHAT ULTIMATELY MATTERS. IN A FAST-GROWING PHASE SOME OF THESE COMPANIES WILL LOOK EXPENSIVE. BUT WE NEED TO LOOK OUT OVER THE 10 YEAR HORIZON OF ARE THEY GOING TO BE THE MARKET LEADER AND DO THEY HAVE COMPETITIVE DIFFERENTIATION AND THEY CAN GARNER A BIGGER PART OF THE PROFIT POOL.
NOT EVERY SINGLE ONE OF THOSE WILL BE A WINNER. IT IS A GREAT TIME FOR THESE INVESTORS AND YOU CHOOSE THE ONE THAT YOU TRULY BELIEVE IN. AND THERE ARE ONES THAT ARE LESS THROUGHOUT -- LESS FROTHY THAT WE CHOOSE TO BELIEVE IN.
CAROLINE: YOU HAVE A HUGE AWAY OF WINNERS IN THE PORTFOLIOS THAT YOU MANAGE. THE CHIEF INVESTMENT OFFICER. GREAT TO HAVE HER EXPERTISE AND THEMES. AMAZON BOOSTING ITS STAKE IN ANTHROPIC AND WE ARE STAKING ON AI. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: LET US TALK ABOUT ANTITRUST AND GOOGLE BECAUSE THE LATEST IS THAT PERHAPS THE TECH GIANT WILL BE FORCED TO UNWIND ITS PARTNERSHIP WITH ANTHROPIC IF THE FEDERAL JUDGE ACCEPTS THE PROPOSAL TO RESOLVE THIS LANDMARK ANTITRUST CASE. LET US TAKE INTO ALL OF IT. THE CEO AND FOUNDER OF THE CHAMBER OF PROGRESS FOR MORE ON THE EXPERTISE THAT WE MUST MAKE CLEAR USED TO WORK WITH GOOGLE AND REALLY HELP THINK ABOUT STRATEGY AND LOBBYING. AND NOW YOU ARE THE CEO IN ONE OF THE KEY TECH LOBBIES OUT THERE. WE KNOW WHICH SIDE OF THE EQUATION YOU ARE COMING FROM. DID THAT TAKE YOU BY SURPRISE WHEN THE U.K. SAID WE ARE AT EASE WITH THIS ANTHROPIC INVESTMENT BUT THE U.S. TAKES A SECOND LOOK.
>> ABSOLUTELY AND A LOSER FROM THESE REMEDIES WOULD BE ANTHROPIC. THE DOJ WANTD TO UNWIND -- WANTS TO UNWIND THE INVESTMENT AND IT IS A TESTAMENT OF HOW SWEEPING THESE REMEDIES ARE. AND THE THING THAT IS INTERESTING IS THAT IT WAS BROUGHT BY THE FIRST TRUMP ADMINISTRATION AND I DO NOT THINK THEY CARE TOO MUCH ABOUT THE SEARCH DEFAULT DEALS WHAT THEY WANTED TO PUBLIC -- TO PUNISH GOOGLE. NOW THAT BIDEN'S JUSTICE DEPARTMENT HAS WON THE CASE BUT THEY ARE TREATING IT AS A VEHICLE FOR PRETTY BROAD SWEEPING CHANGES TO GOOGLE'S BUSINESS LIKE UNWINDING THINGS LIKE THE ANTHROPIC INVESTMENT. CAROLINE: THE MAIN ONE THAT BLOOMBERG WAS REPORTING ON AND IT WAS SUBSTANTIATED WAS THE SELLING OFF OF CHROME. AND MANY LIKE YOU SAID THIS DOES NOT SEEM TO BE GOING INTO THE PAYMENTS BEING MADE TO APPLE, SAMSUNG AND OTHER DEVICE MAKERS TO MAKE GOOGLE SEARCH THE DEFAULT.
THE FACT THAT CHROME HAS 60% MARKET SHARE WHEN IT COMES TO THE BROWSER MARKET AND A LOT OF PEOPLE ACCESS SEARCH THROUGH IT, WHAT IT NOT BE A GOOD IDEA TO PEEL OFF SOME OF THE WAYS IT DOMINATES THE SEARCH? ADAM: THE KEY POINT IS IF THE JUSTICE DEPARTMENT THOUGHT CHROME WAS A PROBLEM IT SHOULD HAVE INCLUDED IT IN THE ORIGINAL ARGUMENT WHICH IS THE STRANGE PART OF INCLUDING IT AS A REMEDY. THE DOJ NEVER BROUGHT CHARGES AGAINST CHROME OR MADE ALLEGATIONS THAT GOOGLE HAD IMPROPERLY PREFERENCE TO SEARCH ENGINE IN CHROME BUT NOW THAT THEY ARE LOOKING AT THE REMEDY PHASE. IT IS COMING OUT OF LEFT FIELD. CHROME IS VALUABLE FOR GOOGLE AS A WAY TO ENCOURAGE PEOPLE TO SPEND TIME ON THE INTERNET AD THAT IS CLEARLY TRUE. BUT THE IDEA THAT IT IS
VALUABLE TO OTHER PEOPLE, IT DOES NOT HAVE REVENUE OF ITS OWN AND IT IS NOT VALUABLE IF IT IS DECOUPLED. I THINK IT IS UNLIKELY AND ABOUT AS LIKELY AS GOOGLE TO SELL CHROME AS ELON MUSK'S DOGE COMMISSION WILL MAKE THE GOVERNMENT MORE EFFICIENT. CAROLINE: THAT IS TAKING US INTO A DIFFERENT AVENUE. WE WILL HAVE TO GET TO THAT ANOTHER TIME. I AM INTERESTED IN SOME OF THE OTHER AREAS.
ONES THAT TOOK PEOPLE ABACK IS THE IDEA THAT THEY WILL BE FORCED TO LICENSE OR HANDOVER THE UNIQUE DATA THE OTHER RIVALS EVEN AS LARGE AS MICROSOFT WHEN IT COMES TO THE WORLD OF SEARCH. HOW TECHNICALLY FEASIBLE IS THAT AND HOW PRO-COMPETITION IS THAT SORT OF AN OUTCOME? ADAM: TECHNICAL OF WHAT THE JUSTICE DEPARTMENT SAYS THERE SHOULD BE A TECHNICAL COMMITTEE WITH FULL ACCESS TO THE SOURCE CODE AND THAT IS VERY INVASIVE. YOU'RE ABSOLUTELY RIGHT THAT THINGS LIKE SPINNING OFF CHROME GOT ATTENTION. BUT IF YOU LOOK IN THE DETAILS
OF THE FILING YOU ARE RIGHT, THEY ARE PROPOSING THAT GOOGLE MAKE IT SECRET SAUCE ALGORITHMS AVAILABLE TO RIVALS, SHARE THE USER DATA WITH RIVAL SEARCH ENGINES INCLUDING BAIDU. THERE IS A PROVISION THAT WOULD MAKE GOOGLE PAY FOR CONSUMERS TO SWITCH TO COMPETING SEARCH ENGINES WHICH IS LIKE PEPSI PAYING THE CUSTOMERS TO TRY COKE. IT WOULD MAKE FUN PAID ADVERTISING CAMPAIGNS FOR BEING AND DUCK DUCK GO.
I DO NOT THINK THEY WOULD NOT ONLY DETER GOOGLE FROM CONTINUING TO INVEST IN OVATIONS IF THEY HAVE TO SHARE, BUT THEY ARE SO EXTREME THEY ARE LIKE PRESCRIBING A LIMB AMPUTATION BECAUSE THE PATIENT HAS A HANGNAIL. CAROLINE: THE ARGUMENTS THAT YOU MAKE ARE VERY CLEAR AND WE ARE THEREFORE TRYING TO PLAY DEVILS ADVOCATE. ME AS A CONSUMER, WHAT ANY OF THIS BE GOOD FOR ME AS A CONSUMER IF INDEED GOOGLE IS FORCED TO OPEN UP OR ANY PARTS OF THE IDEAS COMING FROM THE DOJ A REMEDY? ADAM: I THINK THE VAST MAJORITY OF PEOPLE WANT SEARCH ENGINES TO WORK AND TO ANSWER QUESTIONS FOR THEM AND ONE OF THE THINGS THAT I THINK IS INTERESTING IS THAT THE AI LAYER THAT GOOGLE IS BUILDING IS A DIRECT RESPONSE TO THE SUCCESS OF CHATGPT. WE SAW A NEWS REPORT THAT OPENAI WILL BUILD ITS OWN BROWSER. THESE REMEDIES WOULD TAKE DIRECT AIM.
IT WOULD NOT ALLOW GOOGLE TO PUT IN AI GENERATED RESULTS INTO ITS SEARCH RESULTS. I DO THINK THAT WOULD BE A DIRECT VIOLATION OF THE CONSUMER WELFARE STANDARD, WHICH HAS REALLY BEEN THE LODESTAR FOR ANTITRUST ENFORCEMENT. I CAN SEE THAT ALL OF THESE REMEDIES WOULD BE GREAT FOR MICROSOFT AND GO. THAT IS NOT -- DUCK DUCK GO, BUT THAT IS NOT THE WAY WE DO ANTITRUST ENFORCEMENT. CAROLINE: MANY FELT THERE WOULD BE A
SLIGHT CHANGE OF HOW YOU DO ANTITRUST IN THE U.S. PARTICULARLY UNDER NOW A CURRENT DOJ. WHAT IS NOTABLE IS THAT THIS WILL CHANGE. WE HAVE A NEW ADMINISTRATION COMING IN AND IT IS LIKELY THAT JONATHAN KANTER HANDS OVER THE REINS. DO YOU THINK ANYTHING CHANGES ON THE BACK OF THAT. IT WAS A TRUMP ADMINISTRATION THAT BROUGHT THIS CASE. ADAM:
FRANKLY THE FACT THAT JONATHAN KANTER IS ON HIS WAY OUT IS THE REASON WHY THESE REMEDIES ARE SO SWEEPING. HE WILL NOT BE AROUND FOR THE TRIAL ABOUT THE REMEDIES NEXT YEAR. A LOT OF THE ATTORNEYS WHO ARE PROSECUTING THE CASE ARE SHOPPING THEIR RESUMES AROUND WASHINGTON. TRUMP WILL HAVE A TURNOVER IN THE AGENCIES LIKE A DOJ. HE DOES NOT HAVE TO OWN WHAT IS
HAPPENING NEXT SO THAT IS WHY HE SWUNG FOR THE FINCHES -- FOR THE FENCES. TRUMP NAMED PAM BONDI FORMER ATTORNEY GENERAL OF FLORIDA AS HIS NEXT ATTORNEY GENERAL. SHE WILL DECIDE WHO THE HEAD OF THE ANTITRUST DIVISION WILL BE. AND THERE MIGHT BE SLIGHT CHANGES. I THINK THAT TRUMP LIKES HAVING CASES AGAINST BIG TECH BECAUSE FRANKLY THEY PROVIDE HIM SOME KIND OF PUNISHMENT OR LEVERAGE OVER SERVICES. BUT THERE MIGHT BE CHANGES IN HOW THEY MANAGE THE CASE OR DIFFERENT APPROACHES TO HOW THEY APPROACH THINGS LIKE REMEDIES. CAROLINE: THANK YOU FOR THE EXPERTISE.
THE CHAMBER OF PROGRESS CEO ON ALL THINGS GOOGLE. WE WERE TALKING ABOUT HOW GOOGLE MIGHT HAVE TO UNWIND ANTHROPIC INVEST AND BUT ANOTHER, -- ANOTHER COMPANY IS PILING IN WITH AN ADDITIONAL $4 BILLION IN IT STAKE. IT IS THE BUILDER OF GENERATIVE AI SOFTWARE.
WHEN YOU SAW THIS ENORMOUS SET OF MONEY GOING TOWARDS ANTHROPIC, WHAT DID YOU THINK? >> WE KNEW THAT THEY WERE RAISING MONEY BUT THIS EMPHASIZES THAT AMAZON HAS GONE FULL BEAR HUG. MICROSOFT POKED MONEY INTO OPENAI FOR THE PER BOARD PROOF -- PREFERRED PROVIDER FOR CHATGPT AND AMAZON DECIDED THAT CLAUDE IS GOOD ENOUGH THAT THEY COULD SEEK TO TIE IT TO THEIR PLATFORM AND THEY WILL DO THAT. CAROLINE: HOW EXCLUSIVE WILL ANTHROPIC BE? GOOGLE HAS AN INVESTMENT THAT THEY ARE HOPING TO KEEP? MATT: IT CAN STILL RUN ON OTHER CLOUDS, IT IS NOT LIKE THE MICROSOFT OPEN I I DEAL. -- OPENAI DEAL. AMAZON WAS PUSHING MORE OF ANTHROPIC USING ITS HARDWARE WILL ARE TO TRAIN ITS -- HARDWARE TO TRAIN ITS MODELS. THEY THINK ANTHROPIC CAN HELP IT MAKE A GOOD AI TRIP AND -- CHIP AND THAT IS A GOOD CLOUD PLATFORM. CAROLINE: AND THEY ARE SPENDING A TON OF
MONEY. THANK YOU. MEANWHILE THE U.S. SUPREME COURT HAS DISMISSED AN APPEAL BY META, LEAVING IT TO FACE A LAWSUIT OF MISLEADING SHAREHOLDERS ABOUT THE DATA HARVESTING SCANDAL INCLUDING CAMBRIDGE ANALYTICA. YOU HAVE TO THINK BACK A FAIR FEW YEARS. THE COURT DID NOT PROVIDE A NEXT NATION FOR DROPPING THE CASE. COMING UP, AI LEADERS HAVE BEEN
GATHERING IN SAN FRANCISCO FOR ONE QUESTION UNDERMINED, WHAT WOULD A SECOND TRUMP ADMINISTRATION MEAN FOR AI SAFETY. CAROLINE: TIME FOR TALKING TECH. PARAMOUNT IS PROMISING A ONE MILLION-DOLLAR RETENTION BONUS TO ITS HEAD OF GOVERNMENT RELATIONS AND HUMAN RESOURCES AS LONG AS IT MERGED WITH CASH MERGES WITH SKY DANCE. THEY ANNOUNCED THAT ITS THREE CO-CEO WILL HAVE BONUSES. DIRECTV HAS NOTIFIED THAT IT
INTENDS TO TERMINATE ITS ACQUISITION OF DISH NETWORK AFTER THE BONDHOLDERS FAILED TO CONSENT TO A KEY EXCHANGE KILLING THE DEAL THAT WOULD HAVE CREATED THE LARGEST PAY-TV PROVIDER IN THE UNITED STATES. APPLE IS READY TO REVAMP SIRI. THEY ARE DEVELOPING A MORE CONVERSATIONAL VERSION OF THE DIGITAL ASSISTANT AIMING TO CATCH UP WITH CHATGPT. IT WILL USE MORE ADVANCED LLM'S AND HANDLE MORE SOPHISTICATED REQUESTS. TALKING ABOUT AI, LEADERS AND SAFETY INSTITUTES ARE GATHERED IN SAN FRANCISCO THIS WEEK TO DISCUSS THE IMPACT OF ARTIFICIAL INTELLIGENCE ON SOCIETY BUT ONE LOOMING TOPIC DOMINATED CONVERSATIONS, WHAT WOULD POLICY LOOK LIKE UNDER A SECOND TRUMP ADMINISTRATION? FURTHERMORE, -- FOR MORE, WE ARE JOINED BY SOMEONE WHO WAS THERE.
ALONG WITH ALL SORTS OF HEADS OF VARIOUS AI SAFETY NETWORKS AND COMINGS TOGETHER. WHAT ARE WE CURRENTLY THINKING ABOUT THAT MAY BE THE U.S. VERSION OF AI SAFETY IS DISMANTLED IN SOME WAY? >> WE HAD A WHO IS WHO, AND SO WE HAD TECH LEADERS LIKE ANTHROPIC CEO. OFFICIALS FROM INTERNATIONAL COUNTRIES AROUND THE WORLD WHO AGREED TO BE PART OF THIS INTERNATIONAL CONSORTIUM OF DIFFERENT AI SAFETY INSTITUTES. THE LOOMING QUESTION OF UNCERTAINTY IS WHAT WILL HAPPEN ON THE U.S. SIDE TO ITS OWN AI SAFETY INSTITUTE THAT WAS LEADING THE TALKS IF THERE IS A NEW ADMINISTRATION THAT WILL TAKE A DIFFERENT APPROACH TO POLICY.
CAROLINE: ELIZABETH KELLY IS CURRENTLY HEADING UP THAT INSTITUTE. WHAT DID SHE THINK OF THE FUTURE OF AI INNOVATION AND GUARDRAILS UNDER THE NEXT ADMINISTRATION? SHIRIN: SHE MADE THE CASE THAT DESPITE THE FACT THAT PRESIDENT TRUMP HAS SAID THAT HE WILL REPEAL OR HIS PARTY PLATFORM SAID THAT IT WILL REPEAL THE LEIDEN EXECUTIVE ORDER ON AI, ELIZABETH KELLY MADE THE CASE TO ME IN AN INTERVIEW ON THE SIDELINES THAT THEY SAFETY INSTITUTE SHOULD NOT BE SEEN AS A POLITICIZED GROUP. THAT IT IS PART OF A NONPARTISAN AND LARGER GOVERNMENT INSTITUTE CALLED MIST, WHICH IS ABOUT EVALUATING AND MAKING SAFETY STANDARDS AND THEY HAVE BEEN DOING IT WITH THINGS LIKE FACIAL RECOGNITION TECHNOLOGY. SO SHE IS SAYING THAT NO MATTER WHO IS PRESIDENT, WE ARE HAPPY TO BE CONTINUING OUR WORK AS WE HAVE HAD AND THAT IS THE BEST CASE SCENARIO.
THE BIG QUESTION IS IF INCOMING PRESIDENT TRUMP TRIES TO TAKE A DIFFERENT APPROACH AND WILL WE SEE CHANGE WITH THIS INSTITUTE AS WELL. CAROLINE: HOW DISCONCERTING IS IT FOR AI COMPANIES TRYING TO BUILD AND WHAT FEELS LIKE A VACUUM OF DIRECTION BECAUSE I KNOW THAT VERY POSITIVE WORDS WERE SAID ABOUT THE AI SAFETY INSTITUTE BY THE LEADERS OF ANTHROPIC. SHIRIN: IT DOES PROVIDE SOME LEVEL OF UNCERTAINTY BECAUSE WHAT THESE COMPANIES DO NOT WANT IS A PATCHWORK OF LEGISLATION IN ALL OF THESE DIFFERENT COUNTRIES.
AND THE INSTITUTE IS NOT DOING ACTUAL LEGISLATION BUT PROVIDING SOME STANDARDIZED TESTING TO SAY THIS IS HOW WE CAN SAY YOUR MODELS ARE ACTUALLY RISKY IN TERMS OF BIOLOGICAL THREATS OR CYBERSECURITY THREATS. IF THEY ARE HAVING TO RUN 100 DIFFERENT TESTS FOR 100 DIFFERENT COUNTRIES IN THE U.S. VERSION IS CONSTANTLY CHANGING IT IS NOT GOOD FOR THEM. IT IS IN THESE COMPANY'S
INTEREST TO HAVE STANDARDIZATION AND THEY ARE CALLING FOR THE TRUMP ADMINISTRATION TO KEEP THE SAFETY INSTITUTE. CAROLINE: WHAT ABOUT LOCAL GOVERNMENT OFFICIALS. SAM ALMOND WILL BE HELPING THE NEW SAN FRANCISCO MAYOR. SHIRIN: THAT IS RIGHT. AT A LOCAL LEVEL, THE NEW MAYOR IN SAN FRANCISCO HAS APPOINTED SAM ALTMAN TO BE PART OF HIS TRANSITION ADVISORY TEAM. HE HAS SAID IT IN PAST INTERVIEWS THAT SAM IS ONE OF THE MOST IMPORTANT PEOPLE IN THE WORLD AND IS LIVING IN NEW YORK CITY.
THERE IS AN OBVIOUS INCENTIVE ON BOTH SIDES FOR THE MAYOR TO BOTH TAKE ADVICE FROM SOMEONE WHO IS SO POWERFUL AND ALSO FOR OPENAI TO BE A POTENTIALLY BIGGER PART OF CIVIC ENGAGEMENT. CAROLINE: WE THANK YOU FOR ALL THINGS AI BOTH LOCAL AND INTERNATIONAL. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I AM CAROLINE HYDE YOU NEW YORK. WE ARE UP 1.5% FOR THE WEEK ON THE NASDAQ 100.
THE BEST WEEK SINCE THE START OF THE MONTH WHEN WE LEARNED THE OUTCOME OF THE ELECTION. WE ARE MAKING UP SOME OF LAST WEEK'S EROSIONS. NASDAQ 100 IS DOWN ON THE DAY SLIGHTLY. LARGELY BECAUSE OF NVIDIA.
OFF BY MORE THAN THREE PERCENT AFTER EARNINGS CAME AFTER THE BELL WEDNESDAY NIGHT. AS WE HEAD TOWARD THE WEEKEND, MORE PROFIT-TAKING HAPPENING ON THE NAME. BITCOIN UP .7%. $98,741. IT CONTINUES TO BE A RISK ON
ACID OF CHOICE. SOME SORT OF PROXY EFFECT OF BITCOIN. EVEN HE WOULD SEND THIS STOCK HAS RUN TOO FAR, TOO FAST. IT
IS PERHAPS TIME TO BET AGAINST IT. FOR NOW WE HAVE TO DIG AND MORE ABOUT WHAT IS HAPPENING WITH MICROSTRATEGY. OVER THE LAST TWO DAYS WE ARE OFF BY 9%.
THAT WILL HURT IF YOU ARE IN THESE 2X ETF'S. IT IS PROVING A PAIN POINT FOR SOME BANKS TRYING TO MAKE MARKETS AROUND THESE ETF'S. TALK US THROUGH, WHO ARE THE PLAYERS THAT ALLOW YOU TO GO TWO TIMES A MOVE ON MICROSTRATEGY AND THE DIFFICULT THEY ARE HAVING WITH THE SWAP MARKET. >> THEY WERE NOT AROUND JUST A FEW MONTHS AGO. THEY INCREASED OUR LEVERAGE. THEIR TWO ETF'S HAVE THE EXPOSURE AND GO UP WHEN MICROSTRATEGY RALLIES. THE LOSSES CAN BE QUITE STEEP.
WHAT WE HAVE SEEN ACTUALLY FLAGGING THE EFFECT OF THOSE TWO ETF'S, WHICH ARE AROUND $4 BILLION. THE AMOUNT OF RISK AND LEVERAGE EXPOSURE THEY TAKE IS QUITE IMPORTANT. THEY DO IT VIA SWAPS AND THAT HAS BECOME A PROBLEM. NOT MANY PEOPLE ARE READY TO TAKE THAT RISK AND FOLLOW THAT VOLATILITY. THERE ARE THREE BROKERAGES THE ETF IS WORKING AT THE MOMENT. IT IS HARD TO GET MORE LEVERAGE GOING FORWARD TO CHASE THE RALLY. CAROLINE: GET TECHNICAL FOR US FOR A
MOMENT. THERE ARE A LOT OF RETAILERS IN THESE LEVERAGED ETF'S. I'M HEARING FROM NEIGHBORS ABOUT THEM TAKING OPTIONS OUT AND IT MAKES THE EYES WATER. WHEN TRYING TO FULFILL THE PROMISE OF THESE INSTRUMENTS, THE RISK LIMITS OF THE PRIME BROKER ARE BEING TESTED. WHAT IS THE ETF MANAGER TO DO? >> WE HAVE SEEN A LOT OF PEOPLE USE CO-OPTIONS TO CHASE THE UPSIDE. THE WAY THOSE PRODUCTS WORK IS THEY OFFER REBALANCE WITHIN THE LAST 30 MINUTES OF THE TRADING DAY. IF YOU LOOK DEEPER IN THOSE CHARTS, YOU SEE BIG DURATIONS
IN THE LAST 30 MINUTES, WHICH IS WHAT TRADING DESKS ARE LOOKING AT. A LOT OF THE PRODUCTS NEED TO BUY A LOT MORE OF THE UNDERLYING STOCK TO CHASE BACK TO THE NEEDED EXPOSURE TO HAVE 2X LEVERAGE. WE HAVE SEEN THAT EFFECT IN THE LAST 30 MINUTES, WHICH CAN BE BIG. CAROLINE:
OUR DAILY TARGET ETF -- FASCINATING. ALL THINGS MICROSTRATEGY AND THE LEVERAGE PLAY. DIGITAL ASSETS BEING FLAGGED AS UNREGISTERED SECURITIES BY THE SEC ARE RALLYING AFTER THE AGENCY'S CHAIR ANNOUNCED HE WILL STEP DOWN. HE NOW INTENDS TO EXIT IN JANUARY ON HIS OWN ACCORD ON THE DAY THE PRESIDENT-ELECT IS DUE TO BE INAUGURATED. BITCOIN IS NEAR THE $100,000 LEVEL.
THE CRYPTOCURRENCY HAS BEEN SURGING SINCE DONALD TRUMP'S REELECTION. BINANCE CEO RICHARD TENG SAT DOWN WITH FRANCINE LACQUA. RICHARD: PRESIDENT TRUMP BEING ELECTED GIVES A BOOST AND CLARITY TO THIS. 2024 HAS BEEN A LANDMARK YEAR AND MOMENTUM STARTED EARLIER THIS YEAR. IF YOU LOOK AT WHAT HAPPENED IN JANUARY, BITCOIN ETF BEING APPROVED IN THE U.S. AND SUBSEQUENTLY AROUND THE WORLD, BRAZIL TO CANADA, AUSTRALIA, HONG KONG AND THE LIST GOES ON. IT GIVES RECOGNITION AND THE
RESPECT THAT THIS SECTOR DESERVED ALL ALONG. TOP FINANCIAL INSTITUTIONS AROUND THE WORLD STARTING TO RECOGNIZE THE VALUE OF THIS SPACE. LARRY FINN, CEO OF BLACKROCK, HE WENT FROM CRYPTO SKEPTIC TO CRYPTO BELIEVER, THAT SPEAKS VOLUMES.
WHEN YOU LOOK AT THE BITCOIN ETF, IT IS THE BEST PERFORMING ETF SO FAR IN THE HISTORY OF ETF'S. INSTITUTIONALIZATION HAS STARTED AND MAINSTREAMING HAS STARTED. FRANCINE: COULD THE TRUMP ADMINISTRATION CHANGE EVERYTHING FOR CRYPTOCURRENCIES? RICHARD: IT IS A BIG POSITIVE. THE LAST FOUR YEARS IN THE U.S. HAS BEEN PRETTY TOUGH IN TERMS OF REGULATION VIA ENFORCEMENT, WHICH IS NOT NECESSARILY THE BEST FORM OF REGULATION. WE HAVE A VERY PRO-CRYPTO PRESIDENT AND ALSO THE HOUSE OF REPRESENTATIVES.
THE SAME STORY IS HAPPENING IN THE SENATE. MANY PRO-CRYPTO LEGISLATORS AND POLICYMAKERS ARE BEING ELECTED. CAROLINE: BINANCE CEO RICHARD TENG SPEAKING WITH FRANCINE LACQUA. THERE IS AN ONGOING SEC DISPUTE THAT NO C-SUITE EXECUTIVES HAVE BEEN -- CHARGED IN THE RECENT ROUND OF INDICTMENTS. TIM TULLY WILL BE WITH US. THIS IS "BLOOMBERG TECHNOLOGY." PODCAST. THIS IS BLOOMBERG.
STILL PRIVATE FINTECH GIANT STRIPE IS BUYING BACK SOME OF ITS SHARES AT A $70 BILLION VALUATION. IT IS LIKELY TO SEE A LOT OF MONEY CHANGE HANDS. ANOTHER SECONDARY MARKET ACTIVITY. WHO ARE THEY PURCHASING FROM? WHO NEEDS THE LIQUIDITY? >> THIS IS FOR EX EMPLOYEES RATHER THAN CURRENT EMPLOYEES. AND VENTURE CAPITALISTS. STRIPE HAS DONE SEVERAL TENDER
OFFERS. I BELIEVE THIS IS THE THIRD ONE THIS YEAR. THIS IS DIFFERENT THAN THE SUKHOI A ONE WHERE THEY PURCHASED A LOT OF SHARES.
OUR UNDERSTANDING IS A GOOD BE STRIPE ITSELF BUYING BACK A LOT OF SHARES. THIS COULD BE A MOVE TO CLEAN UP THEIR CAP TABLE. CAROLINE: THAT ALWAYS HELPS. TALKING ABOUT POTENTIAL IPO'S, YOU WERE REPORTING ON ONE.
KATIE: ONE PASSWORD IS HAVING EARLY CONVERSATIONS WITH BANKS. OUR UNDERSTANDING IS THEY ARE HOPING TO GO PUBLIC NEXT YEAR. IT IS A TORONTO-BASED COMPANY AND THE PASSWORD MANAGEMENT BUSINESS.
THEY STARTED TAKING OUTSIDE CAPITAL FIVE YEARS AGO. IT LOOKS LIKE THEY ARE GETTING CLOSER TO PROVIDING A LIQUIDITY EVENT FOR SHAREHOLDERS. CAROLINE: SOME ACTIVITY AHEAD. KATIE, WE APPRECIATE IT.
INVESTMENT IN A NATIVE APPLICATIONS REACHED $4.6 BILLION IN 2024, ALMOST EIGHT TIMES WHAT IT WAS IN 2023. WHERE IT IS ALL GOING FOR 2025. TIM TULLY CAN DEEP DIVE WITH US. THE AMOUNT OF CONVERSATIONS I AM HAVING THAT ARE PIVOTING AWAY FROM INFRASTRUCTURE AND LARGE LANGUAGE MODELS TO WEAR IN THE APPLICATION LAYER THIS WILL BE MOST VALUABLE. TIM: JUST TO BE TECHNICAL, A LOT OF THAT IS DRIVEN BY THE FACT FOUNDATION MODELS -- WHAT YOU ARE SEEING IS THE MONEY IS FLOWING INTO PLACES WHERE APPLICATIONS CAN DO WELL.
TECH, HEALTH CARE, FINTECH. LARGELY THAT IS BECAUSE THE ARCHITECTURES ARE SETTLING IN TERMS OF DEVELOPERS BUILDING APPLICATIONS. IN 2023 THEY WERE TRYING TO FIGURE OUT HOW TO BUILD APPLICATIONS USING GENERATIVE AI. THAT HAS CHANGED IN 2024. CAROLINE: YOU ARE AN INVESTOR IN ANTHROPIC.
WE AND BALANCED AMAZON IS TAKING ANOTHER $4 BILLION CASH INFUSION AND WANTS TO MAKE SURE IT IS OFFERING ITS OWN CLOUD TECHNOLOGY TO OTHER CLIENTS WITH THE HELP OF ANTHROPIC. I AM TALKING TO SOME APPLICATION MAKERS AND THEY ARE SAYING THE SUPPORT COMING FROM CLOUD PROVIDERS FOR THEIR BUSINESSES IS EXTRAORDINARY. HOW ARE YOU SEEING APPLICATION MAKERS DINING OUT FOR MICROSOFT AND AMAZON AND THE RIVALRY THERE? TIM: IT IS EXPENSIVE TO PROVIDE INFERENCE FOR THESE THINGS. SEEING A $4 BILLION CASH INFUSION FROM AMAZON IS NOT SHOCKING. THEY HAVE BEEN BLESSED TO USE
SERVICES WITHIN THE ECOSYSTEM. TO MOVE OVER TO ANTHROPIC MAKES THINGS EASIER FOR THEM. CAROLINE: JUST FROM THE RESEARCH YOU HAVE DONE, ARE WE SEEING MONEY STOP GOING TO WAR THESE FOUNDATIONAL LAYERS AND INSTEAD FINDING A NEW HOME IN THE APPLICATION MAKERS? FOR OUR PEOPLE STILL WRITING CHECKS IN DIFFERENT DIRECTIONS? TIM: IT IS GOING IN BOTH DIRECTIONS. MODELS WENT UP 6.5X TO 6.5 BILLION IN 2024.
WE SAW SPENDING GO UP 8X IN 2024. THE DOLLARS ARE FLOWING IN BOTH DIRECTIONS. CAROLINE: YOU MENTIONED SOME OF THE SECTORS WHERE THIS MAKES THE MOST OBVIOUS SENSE. PARTICULARLY HELPING SERVE THE LEGAL INDUSTRY, THE HEALTH CARE INDUSTRY.
HOW MUCH MONEY ARE YOU STARTING TO SEE THESE ULTIMATE END CLIENTS PURCHASING? HOW MUCH ARE WE ACTUALLY SEEING CLIENTS SPEND MONEY ON THESE PRODUCTS? TIM: WE CALL IT PMF, PRODUCT MARKET FIT. IT IS DEFINITELY THERE. I HAVE TAXIING BENEFIT FROM -- I HAVE TECH SEEING BENEFIT. SEEING THE BENEFIT AND SPENDING THE DOLLARS. PEOPLE ARE BUYING UP THE SOFTWARE LEFT AND RIGHT.
WE ARE REALLY EXCITED. CAROLINE: EVERYONE KEEPS QUESTIONING RETURN ON AI INVESTMENT. ARE THESE COMPANIES AND LEGAL SERVICES FINDING IT IS PRODUCTIVITY THAT GETS BOOSTED? WHAT ELSE IS GIVING THEM RETURN? TIM: ABSOLUTELY. THEY WOULD NOT BE BUYING THE SOFTWARE IF THEY ARE NOT GETTING THE RETURN. THEY ARE GETTING TONS OF VALUE AND IS INCREASINGLY RAPIDLY. CAROLINE: WHERE IS THE NEXT VANGUARD OF MONEY TO BE MADE WITHIN THE AI CYCLE OR AI REALITY? WHERE ELSE ARE YOU LOOKING TO PUT MONEY TO WORK? TIM: IT IS FOCUSED AROUND THE APPLICATION LAYER.
ARCHITECTURES ARE SETTLED. IT MAKES IT EASIER TO BUILD THE APPLICATIONS. YOU WILL SEE THE VELOCITY OF APPLICATIONS COME OUT QUICKLY. WORKFLOW, AUTOMATION.
CUSTOMER SUPPORT. MARKETING. HUMAN RESOURCES. ANY VERTICAL RIGHT NOW IS RIPE FOR DISRUPTION FOR AI. CAROLINE: TIM TULLY. COME BACK WHEN YOU ARE STARTING TO WRITE EVEN MORE OF THOSE CHECKS TO COMPANIES. GREAT TO HAVE YOU ON.
COMING UP, TIKTOK COULD BE UP FOR SALE IN THE UNITED STATES. WILL IT BE UNDER THE NEXT ADMINISTRATION? SOMEONE WHO HAS THROWN THEIR HAT IN THE RING TO BUY IT, FRANK MCCOURT. >> CREATORS FROM ALL AROUND THE WORLD COME TO TIKTOK TO BE DISCOVERED. FIND AN AUDIENCE, LIVE THEIR
DREAMS OF FAME AND FORTUNE. IN ADDITION TO LAUNCHING COUNTLESS GLOBAL STARS, THE DISCOVERY AND AUTHENTICITY THAT THE FINE THE TIKTOK EXPERIENCE THAT MADE THE PLATFORM A HOME TO SERIOUS ISSUES THAT ARE VITAL TO THE GLOBAL GOOD. CAROLINE: TALKING ABOUT THE POSITIVE ANGLES OF TIKTOK. THE CEO RECENTLY SPEAKING AT APEC IN PERU. LAWMAKERS ARE POTENTIALLY GOING
TO BE LOOKING AT CHANGING ALL OF IT WITHIN THE ADMINISTRATION. RIGHT NOW PROJECT LIBERTY IS HOSTING A SUMMIT ON THE FUTURE OF THE INTERNET TO EXPLORE HOW PEOPLE CAN COME TOGETHER TO CREATE A BETTER ONLINE EXPERIENCE FOR ALL AMERICANS. HERE IS FRANK MCCOURT JR., FOUNDER OF PROJECT LIBERTY. TELL US A LITTLE BIT MORE ABOUT THE SUMMIT YOU ARE HAVING.
IT IS ABOUT TRYING TO HAVE -- WHETHER IT IS LAWMAKERS OR TIKTOK CREATORS -- TALKING ABOUT THEIR EXPERIENCE ON THE INTERNET AND HOW IT CAN BE IMPROVED. FRANK: THAT IS RIGHT. NICE TO SEE YOU AGAIN. IT IS A GATHERING OF NEARLY 500 PEOPLE. ALMOST 100 SPEAKERS. BRILLIANT PEOPLE WHO ARE CONCERNED ABOUT OUR BROKEN INTERNET AND WANT TO FIX IT, NOT JUST COMPLAIN ABOUT IT. IT IS AN ARRAY OF FOLKS, NOT JUST TECHNOLOGISTS OR JUST INVESTORS OR JUST INFLUENCERS OR PARENTS, IT IS ALL OF THE ABOVE. THE CONVERSATIONS ARE EXTREMELY
INTERESTING. THE LEVEL OF ENERGY IS VERY HIGH. PEOPLE ARE TALKING TO PEOPLE THEY OTHERWISE MIGHT NOT BE TALKING TO IF THEY WERE IN THEIR OWN BUBBLE. IT IS SOLUTIONS ORIENTED.
WE ARE MAKING A NUMBER OF ANNOUNCEMENTS. I AM THRILLED WITH HOW THINGS ARE GOING. CAROLINE: LET'S GO TO SOLUTIONS. DAY 1 WAS HELD AT THE MCCOURT SCHOOL OF PUBLIC POLICY. THIS MIGHT HAVE SOME POLICY SOLUTION. YOU HAD LAWMAKERS SIT DOWN TO
DISCUSS IT. IS IT ABOUT GOVERNMENT INTERVENTION OR IS IT SOME OTHER SOLUTION? FRANK: THE POINT I MADE YESTERDAY IS I STARTED THIS ADVENTURE THINKING THAT MAYBE POLICY INTERVENTION WAS THE ANSWER. YOU COULD SEE A DECADE AGO THE INTERNET WAS HEADING AND NOT A GREAT DIRECTION AND COULD DO A LOT OF HARM, WHICH IT HAS SUBSEQUENTLY DONE. WE BE WE COULD GET OUT IN FRONT OF THIS -- MAYBE WE COULD GET OUT IN FRONT OF THIS.
POLICYMAKING IS NO MATCH FOR BIG TECH. BIG TECH IS TOO POWERFUL, RICH, AND HAS TOO MUCH INFLUENCE. THAT IS WHEN WE LAUNCHED PROJECT LIBERTY FIVE YEARS AGO TO REIMAGINE HOW THE INTERNET WORKS, BUILD TECHNOLOGY, BRING IN PARTNERS FROM AROUND THE WORLD WHO SHARE THE CONCERNS WE HAVE. THE DATA THAT IS NOW DRIVING THE INTERNET IS BEING SCRAPED FROM US ALL, BEING AGGREGATED BY BIG PLATFORMS. ALGORITHMS ARE BEING APPLIED TO IT AND WE ARE ALL BEING STRIPPED OF OUR HUMANITY, NEVER MIND THE VALUE WE CREATE. THINK OF DATA AS PERSONHOOD AND
WE NEED TO RECLAIM OWNERSHIP OF OURSELVES. WE SHOULD OWN AND CONTROL OUR DATA. NOW, THANKFULLY, A LOT OF PEOPLE AROUND THE WORLD ARE RECOGNIZING THIS AND WANTING TO BUILD A NEW VERSION OF THE INTERNET. CAROLINE: I WANT TO RECOGNIZE ON THE FLIPSIDE THAT A LOT OF SOCIAL MEDIA HAS GOOD IN IT, HAS CONNECTIONS, HELP PEOPLE WHO FEEL ALONE IN CERTAIN PARTS OF THE WORLD WHO DO NOT SEE IDENTITY THEY RESEMBLE NEAR THEM FIND COMMUNITY ONLINE. THERE ARE BUSINESS IS BUILT ON THE SOCIAL MEDIA PLATFORMS.
THERE IS POSITIVE ALONG WITH SOME OF THE HARMS. WHEN YOU LOOK AT MAKING A BID FOR TIKTOK, HOW DO YOU SUPPORT THE POSITIVE ALONG WITH HAVING A DECENTRALIZED SOCIAL NETWORK PROTOCOL THAT ALLOWS PEOPLE TO KEEP THEIR IDENTITY MORE? FRANK: THERE IS MASSIVE GOOD THAT CAN COME OUT OF TECHNOLOGY AND SOCIAL MEDIA BUT WE DO NOT NEED TO HAVE ALL OF THE BAD AS WELL. IT IS NOT, THERE IS SOME GOOD SO LET'S ACCEPT THE BAD. WE WANT TO HAVE INTERNET TECHNOLOGY THAT IS AMPLIFYING GOOD.
IT IS OPTIMIZING FOR PEOPLE. IT IS PROTECTING CHILDREN AND STRENGTHENING DEMOCRACY AND HELPING US GET SMARTER, NOT DUMBER. WHAT WE WANT TO DO WITH TIKTOK IS MOVE THE USER BASE OVER. WE DO NOT WANT TO SEE IT SHUT DOWN, EITHER. WE WANT TO MOVE IT OVER TO OPEN-SOURCE PROTOCOL WHERE PEOPLE CAN OWN THEIR IDENTITY AND DATA. THE VALUE PROPOSITION IS SHARED
WITH THE USERS. I WANT TO SEE AT LEAST A PORTION OF THAT GREEN BAY PACKERED. FANS ONLY GREEN BAY PACKERS FOOTBALL TEAM. LET THOSE ON TIKTOK CREATE A PIECE OF THE PLATFORM. CAROLINE: HOW LIKELY IS THAT WITHIN THE NEXT ADMINISTRATION? FRANK: IT IS A GREAT QUESTION. I AM NOT SURE. I HAVE HEARD PRESIDENT-ELECT TRUMP SAY HE DOES NOT WANT TO BAN TIKTOK, EITHER. WE ARE WAITING ON THE LEGAL
DECISION. CONGRESS PASSED A PIECE OF LEGISLATION DEMANDING IT EITHER BE SHUT DOWN OR BANNED, IT IS THAT MUCH OF A NATIONAL SECURITY THREAT. I ASSUME IT WILL BE SOLD AND WE WILL BE IN A POSITION TO BUY IT. WE ARE EXPECTING A LEGAL DECISION IN THE FIRST WEEK OF DECEMBER AND WE WILL SEE WHAT THE NEW TRUMP ADMINISTRATION WILL DO. WE ARE HERE AND READY TO BUY IT. IT IS NOT ME, I DO NOT WANT TO BE THE CEO OF TIKTOK, WE WANT THE PEOPLE TO BUY IT. THE TECHNOLOGY IS HERE.
IT IS WORKING. WE HAVE NEARLY 1.5 MILLION PEOPLE USING THIS NEW TECHNOLOGY. TIKTOK WOULD PROVIDE SCALE. CAROLINE: FRANK MCCOURT JR., COME BACK AFTER THE DECEMBER DATES. THANK YOU. LET'S TAKE A LOOK AT WHAT HAS
HAPPENED TO THE MARKET THIS WEEK. A BIG ROUND-TRIP FOR NVIDIA. WE ARE UP .1%. CURRENTLY OFF BY MORE THAN 3% ON THE DAY. NVIDIA IS THE WORLD'S MOST VALUABLE PUBLICLY TRADED COMPANY. STILL HIGHER IN THE MONTH OF NOVEMBER. BITCOIN, NEVER ENDING. $99,100. WE ARE EVER SO CLOSE TO THE PSYCHOLOGICAL LEVEL OF $100,000 PER BITCOIN. THAT DOES IT FOR THIS EDITION
2024-11-23 17:16
