Reid Hoffman on AI Investing, Trade Policy and Doge | Bloomberg Technology

>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDING SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, ALPHABET EARNINGS IMPRESS WALL STREET AS THEIR AD BUSINESS STAYS RESILIENT. ED: DIFFERENT STORY AT INTEL, INVESTORS PREPARING FOR SHORT-TERM PAIN FROM LAYOFFS.

TRUNK TARGETS -- CAROLINE: TRUNK TARGETS EI -- AI EU REGULATIONS. WE DISCUSS WITH REID HOFFMAN. THE NASDAQ 100, PUSHING UP 5.25%. WE HAVE ADDED ONE AND A QUARTER BILLION IN MARKET CAP, BUT ONLY THE BIGGEST MOVE I WEEKLY BASIS SINCE TWO WEEKS AGO, WE ARE USED TO THE VOLATILITY. CONSUMER SENTIMENT IS LOOKING

UGLY PAIRED WITH THE INCREASES OF THE LAST FEW DAYS. CRYPTO IS HAVING A STELLAR RUN IF YOU LOOK AT BITCOIN. BITCOIN IS UP 12%, OUTPERFORMING OTHER COINS. ED: T-MOBILE, DOWN 10%, ON TRACK FOR ITS BIGGEST DROP SINCE MARCH OF 2020. BASICALLY MISSED ON PAID

WIRELESS SUBSCRIBERS. INTERESTING WEEK IN THAT SPACE, WE DON'T HAVE THE TIME TO GO OVER IT, BUT I WANTED TO BRING IT TO THE AUDIENCE TO CHAT ABOUT. THERE ARE BIGGER NAMES WE ARE FOCUSED ON. ONE OF THEM IS APPLE. BLOOMBERG REPORTING ABOUT WHAT APPLE IS GOING TO DO IN SUPPLY CHAIN FOR RESPONSE TO POTENTIAL TARIFFS AND WHAT THEY WILL DO WITH TALENT AT THE TOP OF THE COMPANY. WE WILL GET TO IT, LATER. ALPHABET IS UP 2%. CORE SEARCH BUSINESS, GOOD.

CLOUD, INTERESTING. THEN THERE IS INTEL, STILL UNDER PRESSURE, STILL WORKING OUT WHAT TO DO. CUTTING MIDDLE-MANAGEMENT. SIGNS THAT THEY HAD A GOOD ONE Q BECAUSE PEOPLE ANTICIPATED TARIFFS. WE WILL GET TO IT.

CAROLINE: WE WILL. BROADLY, I KNOW THAT YOU SPOKE WITH THE CFO OF INTEL AND HOW MUCH THEY WERE STILL SEEING A SEISMIC SHIFT IN THE BUSINESS AND HOW MUCH THERE WAS AN OVERALL CONCERN ABOUT WHERE INTEL GOES IN TERMS OF TRYING TO DELAY AT THAT THEY ARE BRINGING IN MORE THAN THREE TIMES THE REVENUE THAT INTEL DID ON ONE THIRD LESS OF THE OVERALL EBAY'S IS SIGNIFICANT. RETURNING TO ALPHABET, IT IS COMING OFF OF THOSE PREMARKET HIGHS. UP MORE THAN 2%, BUT THERE HAD BEEN A MOVE MOVE OVER 6%.

DAVEY, YOU COVER THIS COMPANY. THERE SEEMS TO BE REAL RELIEF. >> YES. I THINK A LOT OF PEOPLE WERE BRACING THEMSELVES FOR THE AT LEAST INITIAL IMPACT OF TRUMP TARIFFS, LOOMING OVER THESE COMPANIES. ALPHABET EARNINGS WERE QUITE IMPRESSIVE. ESPECIALLY ON ADVERTISING. YOUTUBE AND SEARCH WERE UP 10%

YEAR-OVER-YEAR. IT REALLY IS RESILIENT AND DIVERSE, THE BUSINESS PORTFOLIO THEY HAVE. THE EARNINGS REFLECTED THAT. ED: THANK YOU VERY MUCH. TURNING TO THE OTHER BIG MOVER, INTEL, THEY POSTED A WEEK SECOND-QUARTER FORECAST WITH PLANS TO CUT JOBS, SENDING SHARES SLIDING. I SPOKE TO THEIR CFO, WHO TOLD ME THAT THEY WILL REDUCE THE LAYERS AND CUT THE BUREAUCRACY OUT IN AN EFFORT TO SCALE BACK ON OP EX AND CAPEX. LET'S BRING IN IAN KING, WHO WAS ALSO ON THAT CALL.

THERE ARE MANY STORIES WITH INTEL. MOST OF THE NEGATIVE. WHAT'S THE NEED TO KNOW? IAN: SHORT-TERM IT CONFIRMED EVERYBODY'S FEARS, NICE FIRST QUARTER, THINGS WERE BETTER THAN WE FEARED, PERHAPS, BUT IT'S A FALSE DAWN FOR THE INDUSTRY, A LOT OF THIS IS CALLED THE PULL IN, PEOPLE TRYING TO GET AS MUCH OF IT -- IT IS MUCH AHEAD OF A TARIFF IMPACT AS THEY CAN AND GUESS WHAT, THERE COULD BE A RECESSION ON THE WAY. LONGER-TERM, PEOPLE WANTED MORE THAN JUST A DIAGNOSIS. THEY WANTED AN ANSWER.

THIS IS WHAT WE WILL FIX AND THIS IS HOW WE WILL FIX IT. KIMBERLY GET THAT APART FROM WHAT YOU JUST INDICATED THAT THIS IS WHAT'S WRONG WITH THEIR CULTURE AND INTERNALLY THIS IS WHAT WE NEED TO FIX. CAROLINE: IT WAS A GREAT INTERVIEW THAT YOU DID WITH ED. THANKS SO MUCH. MORE ON GOOGLE, INTEL, AND THE

BROADER TECH SECTOR NOW. STARTING WITH INTEL, IT WAS THE FABRICATION FUTURE. MUCH OF THAT, WE DON'T REALLY KNOW WHAT U.S. POLICY IS IN TERMS OF MONEY GOING TO THEM. HOW DIFFICULT IS IT TO INVEST IN HARDWARE IN THE U.S.

RIGHT NOW? >> GIVEN THE OVERALL UNCERTAINTY THAT IS IN THE MARKET, AS WELL AS JUST WITH POLICY, IT'S VERY DIFFICULT TO MAKE LONG-TERM BUSINESS DECISIONS IN GENERAL. WHETHER IT IS INTEL OR ANYBODY ELSE. I THINK THAT IS WHAT'S BEING REFLECTED IN THE MARKETS. FOR INTEL, SPECIFICALLY, THEY REALLY DO NEED TO MAKE A LOT OF CHANGES. THEY ARE GOING TO BE LONGER-TERM IN NATURE. REALLY, IN ORDER TO REESTABLISH THEMSELVES.

IT'S TABLE STAKES AT THIS POINT. ED: CAN WE TALK ABOUT THE PULL FORWARD THAT HE HAD MENTIONED? ONE Q, BETTER THAN THE STREET THOUGHT. TO Q, WORSE. THE LOGIC, BUT -- CUSTOMERS BOUGHT CHIPS BECAUSE THEY DO THAT TARIFFS WERE COMING. DO YOU THINK ABOUT THAT AS A SORT OF SOLELY INTEL PROBLEM? OR DO YOU GIVE THEM A PASS IN THAT THIS IS AN EVERYONE PROBLEM AT THE MOMENT IN THE CHIP SPACE? >> I DO THINK IT IS AN EVERYONE PROBLEM. A LOT OF EXECUTIVES LOOKED TO ANTICIPATE TURMOIL GOING FORWARD RELATED TO TRADE POLICY. WE DID START TO SEE A LOT OF

THE NEWS COMING THROUGH, WHETHER IT WAS WITH CANADA AND MEXICO IN FEBRUARY, I THINK THERE WAS A BIT OF ANGST. THERE WAS LIKELY A LOT OF PULLING FORWARD ACROSS NOT JUST THE CHIP SECTOR BUT ACROSS A LOT OF DIFFERENT GOODS. ED: THE CORE SEARCH RELATED AD BUSINESS FOR GOOGLE, DOING WELL.

WHAT DOES IT TELL YOU ABOUT THE WORLD THAT WE LIVE IN RIGHT NOW? >> YOU KNOW, I THINK IT WOULD GOOGLE IT'S BEEN A LITTLE TOUGH, RIGHT? GOOGLE IS INEXPENSIVE. IT TRADES AT 16 POINT FIVE, 17 TIMES. SEARCH HAS BEEN STRONG. SEARCH ENGINE, 10% YEAR-OVER-YEAR. STRONG NUMBERS THERE. GOOGLE CLOUD WAS UP OVER 28%. IT SHOWED GREAT PROFITABILITY IN THAT SEGMENT AS WELL.

THINGS ARE MOVING ALONG REALLY WELL FOR GOOGLE. IT'S JUST THE NARRATIVE IN THOSE EXISTENTIAL ISSUES ARE NOT GOING AWAY. YOU HAVE THOSE REGULATORY ISSUES . YOU ALSO HAVE -- YOU ALSO HAVE THE, THE, THE AI ISSUES STILL. CAROLINE: DIG INTO THAT. DIG INTO THAT. WE ALL KNOW ABOUT THE APP ISSUES AND WE WILL TALK ABOUT THAT AT LENGTH IN A MOMENT, BUT I'M INTERESTED IN THE AI ISSUES. PEOPLE ARE USING AI OVERVIEWS

AND SEEING A CAPEX SPEND AND THEY ARE OK WITH THE INFRASTRUCTURE ROLLOUT. WHAT MORE DO THEY NEED TO DO TO PROVE THEY ARE THE WINNER HERE? >> BECAUSE THERE ARE SO MANY COMPETITORS IN THE AI SPACE, WE DON'T KNOW. WE STILL DON'T KNOW HOW IT IS GOING TO MONETIZE PROPERLY FOR GOOGLE, RIGHT? WE KNOW THAT EVEN WHEN THEY DO MONETIZE SOME OF IT, THEY ARE STILL CANNIBALIZING THEIR OWN SEARCH REVENUE.

THAT IS THE PART THAT IS STILL JUST NOT GOING AWAY. UNTIL THAT MIXTURE LEVELS OFF, WE WON'T HAVE A TRUE ANSWER THEIR. I THINK THAT THAT IS WHAT IS KEEPING A LID ON THE OVERALL MULTIPLE FOR GOOGLE. AT LEAST IN THE NEAR TERM. CAROLINE: WHEN THOSE NUMBERS HIT, OTHER MEGA CAPS ROSE. BRINGING BACK OUR CHART FROM A MOMENT AGO, 28% GROWTH IS GREAT, BUT IT IS DECELERATION YEAR ON YEAR, QUARTER ON QUARTER. THERE IS MICRO FOCUS ON THE AD

BUSINESS. HOW DID THIS SET US UP FOR THE REST OF THE EARNINGS SEASON, PARTICULARLY OUR SORT OF COMMITMENT TO LIVING OR DYING BY CAPITAL EXPENDITURES NUMBERS? >> YOU KNOW, I THINK IT'S MORE OF AN OVERALL INDUSTRY CAPEX SPEND THAT WE ARE LOOKING AT, RIGHT? IT'S NOT JUST THE ALPHABET SPEND , BUT IT IS ALSO AMAZON AND META, MICROSOFT, THEIR OVERALL SPEND. A LOT OF THAT IS THEN GOING TO GO TO NVIDIA WITH THE CHIPS IN THE OVERALL AI BUILDOUT. ALL THE DATA CENTER PROVIDERS AS WELL WILL BE BENEFICIARIES. THAT'S WHERE WE ARE ALL FOCUSED.

IT'S STILL RELATIVELY EARLY. DESPITE THE FACT THAT IT WAS DECELERATION FROM THE GOOGLE CLOUD PERSPECTIVE, YOU KNOW, I THINK THAT YOU ARE STILL SEEING CLOUD GROWTH, CLOUD COMPUTING GROW IN THIS 15% TO 20% RANGE FOR THE NEXT FIVE PLUS YEARS. I THINK YOU WANT TO LEAN INTO THAT FOR THE LONG-TERM AND NOT JUST LOOK AT THE OVERALL ONE QUARTER DECELERATION, YOU KNOW, RELATIVE TO LAST QUARTER. CAROLINE: GREAT TO SEE YOU, THANK YOU SO MUCH. COMING UP, THE TRUMP

ADMINISTRATION IS PUTTING PRESSURE ON EUROPE TO ABANDON AI REGULATIONS. MORE ON THAT, NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: THE TRUMP ADMINISTRATION IS PRESSURING EUROPE TO DITCH AI RULES AND PUT LESS TRANSPARENCY ON ADVANCE ARTIFICIAL INTELLIGENCE. LET'S GET MORE ON THIS WITH MIKE . THIS IS BASICALLY A VOLUNTARY AI CODE OF PRACTICE. WHY DOES THE U.S. DISLIKE IT? MIKE: THE U.S.

DISLIKE THE IDEA THAT IT COULD BE COMPELLING COMPANIES TO HAVE TO COMPORT WITH RULES THEY SEE AS RESTRICTIVE AND POTENTIALLY RESTRICTING INNOVATION. STIFLING INNOVATION. THIS IS A REFRAIN WE HAVE HEARD FROM THE TRUMP ADMINISTRATION REALLY SINCE THEY TOOK OFFICE. THEY ARE TARGETING THIS, EVEN THOUGH IT IS A VOLUNTARY CODE OF CONDUCT.

IT'S DESIGNED TO SERVE AS A CODE OF GUIDELINES FOR OBEYING THEIR AI ACT. UNDER THAT LAW, COMPANIES THAT VIOLATE IT RUN THE RISK OF SOME PRETTY HEFTY FINES. THAT'S UP TO 7% OF A COMPANY'S ANNUAL SALES. LOOK AT THE GOOGLE RESULTS FROM YESTERDAY. I COULD BE UPWARDS OF $5 BILLION. BUT THERE IS MORE AT STAKE THAN JUST THE MONEY.

IT'S THIS IDEA OF REGULATION. IT'S A QUESTION WE HAVE HEARD THE ADMINISTRATION ARTICULATE TIME AND AGAIN WITH RELATION TO THE EU. ED: THIS IS JUST WANT TO ADMINISTRATE -- ONE EXAMPLE OF THEIR ATTITUDE TOWARDS THE EUROPEAN UNION IN THE CONTEXT OF TECHNOLOGY. MIKE: ABSOLUTELY. THEY ARE TAKING AIM AT A SERIES OF MEASURES. ON THE TRADE QUESTION, THEY HAVE QUESTIONED THE DIGITAL MARKETS ACT, SEEING IT AS A RESTRICTION ON FREE TRADE. THEY COMPLAIN ABOUT CONTENT MODERATION THAT THE BLOCK IS MUCH MORE IN FAVOR OF THAN HERE IN THE UNITED STATES. THEY SEE IT AS A RESTRICTION ON

FREE SPEECH. WHEN IT COMES TO ARTIFICIAL INTELLIGENCE, RECALL THAT DURING THE BIG AI SUMMIT THAT THE FRENCH PRESIDENT HOSTED IN PARIS , JD VANCE MADE AN ADDRESS THERE WHERE HE DREW A LINE IN THE SAND AND CAUTIONED THE ENTIRE BLOCK AND OTHER COUNTRIES AS WELL AGAINST OVER REGULATING AI AND TARGETING AMERICAN COMPANIES IN THE PROCESS. CAROLINE: GOOGLE HAS SPOKEN OUT ABOUT IT. SO HAS META. MIKE SHEPPARD, THANK YOU.

BACK TO WASHINGTON, WHERE THE COURT CONTINUES TO HEAR ARGUMENTS AND REMEDIES ON THE GOOGLE SEARCH MONOPOLY. ONE POTENTIAL REMEDY IS THEIR SEARCH RIVAL, DOT PLOT GO. WE'RE JOINED NOW BY THE SENIOR VICE PRESIDENT OF DUCK GO PUBLIC AFFAIRS. HOW HAS THIS REMEDIAL DISCUSSION BEEN GOING FROM YOUR PERSPECTIVE? HAVE YOU BEEN HEARD? >> OUR CEO WRAPPED UP ALMOST SIX HOURS OF TESTIMONY YESTERDAY IN THE TRIAL. IT IS OUR BELIEF THAT OVER THE LAST 15 YEARS, SINCE BOTH THE CASE WAS FILED AND THE TIME THE CASE ADDRESSES, GOOGLE HAS ILLEGALLY MONOPOLIZED THE SEARCH MARKET.

THROUGHOUT THAT TIME, WE HAVE NEVER HAD A FAIR PLAYING FIELD TO COMPETE AND THE REMEDIES HERE COULD CHANGE THAT. ED: THE REMEDIES GO TOO FAR, ALPHABET WOULD ARGUE. THERE ARE OTHER ONES IN TERMS OF WHETHER IT IS SELLING OFF CHROME OR SHARING DATA. REALISTICALLY, WHAT WOULD YOU LIKE TO BE DONE THAT MAKES IT MORE OF A LEVEL PLAYING FIELD. >> EACH REMEDY PROPOSED IS NECESSARY BUT NOT SUFFICIENT ON THEIR OWN. WE ARE TALKING ABOUT UNDOING 15

YEARS IN ILLEGAL MONOPOLY. CAROLINE: YOU THINK IT DOESN'T GO FAR ENOUGH? >> EVERYTHING THERE HAS A TARGETED PURPOSE, DISTRIBUTION AND SCALE. YOU NEED ACCESS TO, RIGHT? RIGHT NOW MOST USERS DON'T PICK GOOGLE, THE DECISION IS MADE FOR THEM BY THE FACT THAT THEY ARE THE NEAR EXCLUSIVE DEFAULT EVERYWHERE. WHEN YOU HAVE THAT ADVANTAGE, IT MEANS YOU HAVE A SCALE ADVANTAGE. YOU HEARD MULTIPLE CEOS FROM DIFFERENT COMPANIES TALK ABOUT THAT ADVANTAGE THIS WEEK AND HOW IT MAKES GETTING QUALITY SEARCH RESULTS DIFFICULT. EVEN OPENAI SAID THAT. THEY CAN DO 80%, BUT WHEN IT COMES TO THE 20% OF THEIR LONGTAIL, SPECIFIC QUERIES THAT ARE NOT DONE A LOT, EVEN A ARE STRUGGLING WITH IT AND GOOGLE HAS THE BEST INDEX. CAROLINE:

I THINK YOU HAVE TALKED ABOUT QUERIES IN THE PAST, BUT WHAT CAME OUT OF THE PROCESS IS THAT CHROME IS A HOT COMMODITY, RIGHT? YOUR BOSS ASSIGNED A $50 BILLION VALUE, BUT FROM YAHOO! AND OPENAI THAT THEY ARE INTERESTED IN IT. I APPRECIATE YOU SPELLING OUT FOR THE AUDIENCE -- WHAT WOULD YOUR BUSINESS ACTUALLY GET IN PURCHASING OR THERE BEING A CHANGE IN THE OWNERSHIP OF CHROME? PARTICULARLY IN LIGHT OF CHROMIUM, THE UNDERLYING SOURCE CODE, IS OPEN SOURCE ANYWAY. >> IF YOU ARE A BIG TECH COMPANY AND YOU ARE TRYING TO MAKE MONEY , WHICH IS OF COURSE THE GOAL, AND YOU HAVE ADVERTISING, THE FACT THAT THE MOST POPULAR ROSE IN THE ENTIRE WORLD WOULD BE UP FOR SALE IS AN ENORMOUS VALUE. THINK ABOUT THE CASE GOING ON JUST DOWNSTAIRS FROM THE SEARCH CASE, THE META-CASE. META BOUGHT WHATSAPP FOR $19

MILLION. SORRY, $19 BILLION. THE WORTH OF CHROME IS WORTH AT LEAST DOUBLE THAT. YOU CAN IMAGINE ANY BIG TECH COMPANY THAT HAS AN ADVERTISING SERVICE WOULD PUT ADS ON A CHROME THAT THEY OWN AND THAT THAT COULD CREATE ENDLESS MONETIZATION OPPORTUNITIES. ED: I BELIEVE YOU WOULD LIKE TO HAVE ACCESS TO THE GOOGLE CLICK AND QUERY DATA. WHAT IS THE BENEFIT OF THAT TO

YOU, PLEASE? >> GOOGLE HAS A MASSIVE SCALE ADVANTAGE NOW COMPARED TO OTHER SEARCH ENGINES. THEY SEE MUCH MORE CLICKS AND QUERIES THAN OTHER SEARCH ENGINES, MEANING THEY CAN IMPROVE THE QUALITY OF THEIR SEARCH ENGINES FASTER AND JUST OVERALL HAVE A BETTER QUALITY THAN OTHERS CAN. OUR CEO TALK ABOUT IT YESTERDAY, RIGHT, SO YOU LOOK SOMETHING UP ON OH, TRYING TO GO TO A PHARMACY OR RESTAURANT.

YOU MIGHT SEE THE HOURS AREN'T CORRECT. BUT THEY ARE ON GOOGLE. OFTEN TIMES THAT IS BECAUSE OF THAT KIND OF CLICK AND QUERY DATA. MORE PEOPLE ARE CLICKING ON THE CORRECT HOURS, THUS GIVING GOOGLE THE INFORMATION THAT THIS IS WHAT YOU SHOULD BE DISPLAYING TO USERS. YOU KNOW, YOU DON'T WANT SOMEONE SWITCHING TO DUCK DUCK GO AND HAVING THEM TRY A FEW THINGS OUT AND THEN END UP RAGE QUITTING AT THE END OF IT. SO, BY SHARING THIS DATA, YOU

CAN LEVEL THE PLAYING FIELD WHILE ALSO MAKING IMPROVEMENTS TO IT. AS I THINK PEOPLE HAVE SEEN, YOU KNOW, GOOGLE HAS SAID WITH THEIR OVERVIEWS, TELLING PEOPLE TO EAT ROCKS AND PUT GLUE ON PIZZA, THERE IS A LOT OF OPPORTUNITY FOR BETTER INTEGRATIONS AND BETTER SERVICES. THIS IS NOT AT ALL A COPY PASTE. THIS IS ASKING FOR A LEVEL PLAYING FIELD ON WHICH TO COMPETE. CAROLINE: YOU FEEL THAT GOOGLE SHOULD BE FORCED TO GIVE YOU THAT DATA? >> I THINK THAT IS HOW YOU CAN LEVEL THE PLAYING FIELD. CAROLINE: AND IT'S NOT JUST AT THAT. REMIND US ABOUT THE CONSUMER. IT'S ALL VERY WELL THAT YOUR

BUSINESS WANTS TO DO BETTER, BUT AS A CONSUMER I'M HAPPY WITH MY EXPERIENCE. >> I THINK THERE'S A BIT OF STOCKHOLM SYNDROME HAPPENING WITH GOOGLE. EVERYONE'S LIKE -- THIS IS GREAT, I ENJOY IT. BUT YOU'RE ALSO CAPTIVE TO IT. YOU HAVE NEVER BEEN EXPOSED TO ALTERNATIVES. ANYONE WATCHING HERE, TRY TO SWITCH YOUR SEARCH ENGINE RIGHT NOW AND SEE IF YOU CAN FINISH IT BY THE TIME WE ARE DONE. IT'S DIFFICULT TO DO AND THAT'S NOT AN ACCIDENT.

GOOGLE IS EXTREMELY GOOD AT DESIGNING PRODUCTS TO GET USERS TO DO EXACTLY WHAT THEY WANT THEM TO DO FOR IN THIS CASE, BUT THEY DON'T WANT THEM TO DO AS WELL. ED: THEIR COUNTER WOULD BE THAT CHROMIUM IS OPEN SOURCE HEART REMEDIES AT THE DOJ ARE TOO PUNITIVE. SVP OF PUBLIC AFFAIRS FOR DUCK DOTS <GO>, THANK YOU FOR JOINING US ON THIS STORY. COMING UP, APPLE LOOKS TO ACCELERATE A MANUFACTURING SHIFT FROM CHINA TO INDIA. WE WILL HAVE MORE. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: FIRST UP, META IS LAYING UP OVER 100 PEOPLE IN ITS STAFF CRATING VR EXPERIENCES ALONG WITH OPERATIONS FOCUSED EMPLOYEES.

THIS AS THEY LOOK TO STREAMLINE WORK, BEING DOWN ACROSS TWO DIFFERENT TEAMS. APPLE IS STRIPPING ITS SECRET ROBOTICS UNIT FROM THE AI ORGANIZATION UNDER JOHN JAY AND ANDREA. IT'S MOVING TO A HARDWARE DIVISION ACCORDING TO SOURCES.

IT'S A BROADER EFFORT TO CATCH UP RIVALS IN THE SPACE AND IT'S THEIR SECOND MAJOR PROJECT TO BE REMOVED IN THE PAST MONTH. SECOND WITH APPLE, THEY PLAN TO BUILD MORE IPHONES FOR THE UNITED STATES IN INDIA. THEY ROUGHLY AIM TO DOUBLE THEIR OUTPUT, MOVING PRODUCTION AWAY FROM CHINA AMID THE U.S. TRADE WAR. ADD? ED:

COMING, DIVERGENCE IN TECH, GOOGLE POSTING STRONG AD SALES RESULTS. BOTH COMPANIES ARE FACING HEADWINDS FOR RENEWED TARIFFS AND GLOBAL UNCERTAINTY. THAT WILL BE OUR TOPIC OF CONVERSATION, NEXT. LET'S RECAP WHERE THE MARKETS STAND. IT HAS BEEN A DECENT FIVE DAYS AT THE NEXT LEVEL.

THE NASDAQ 100 IS LOOKING STRONG BUT LOSING MOMENTUM ON FRIDAY. BITCOIN, 95,600 PER TOKEN. IF I SAID THAT THIS BEHAVED LIKE GOLD, SOMEONE WILL CLIP IT AND PUT IT ON SOCIAL MEDIA, SO I HAD BETTER NOT SAY THAT, BUT THAT IS WHAT THE WRITING ON THE BLOOMBERG TERMINAL STATES. AS YOU JUST COVERED, APPLE IS REALLY INTERESTING AND GOOGLE IS OUT OF THE WAY. THINKING ABOUT NEXT WEEK, IT'S

APPLE THAT WE REALLY, REALLY FOCUS ON. ANSWERING OR HOPING TO ANSWER MANY OF THE QUESTIONS AROUND TRADE UNCERTAINTY AND TARIFFS. YOU JUST OUTLINED SOME OF THE BLOOMBERG REPORTING ON WHY THAT IS THE CASE. STICK WITH US. THERE'S MUCH MORE TO COME. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." ED: LET'S CHECK AGAIN ON THE MARKETS. THE NASDAQ 100 ALWAYS GOING TO

A TECH EVERY -- TECH HEAVY INDEX. UP ALMOST 5.5%, REBOUNDING FROM THE DROP OF 2.5% THAT WE HAD LAST WEEK. FRIDAY WE LOST MOMENTUM WITH ECONOMIC ANGST OVER THE HEADLINES FROM TRUMP AND TRADE, WHICH WE WILL GET TO SHORTLY. ALSO, MIXED BAG OF CORPORATE EARNINGS. SPEAKING OF WHICH, LET'S TAKE A

LOOK AT A COUPLE. THE STORY WITH INTEL THIS CLEAR. ON THE PRODUCT SIDE, THEY HAVEN'T WORKED IT OUT. ON THE SCALE SIDE, THEY HAVEN'T WORKED IT OUT. THEY WILL BE DOING SIGNIFICANT LAYOFFS. WE DON'T HAVE A FULL SENSE OF THE STRATEGY FROM THE NEW CEO.

ALPHABET IS UP 2%. THE EAGLE EYED, THE EAGLE EYED, SPOTTED THAT THE PROPHET GOT A BOOST FROM SOMEWHERE MAY BE SURPRISING. CAROLINE: UNREALIZED GAIN FOR INVESTMENT IN A PRIVATE COMPANY TO THE TUNE OF $8 BILLION.

YOU KNOW WHAT THAT PRIVATE COMPANY IS, RIGHT? ED: YES, SPACEX. GOOGLE HAS BEEN AN INVESTOR AND IT IS AN UNREALIZED GAIN WITH 8 BILLION ON PAPER BOOST. THAT'S PRETTY GOOD GOING, ISN'T IT. BUT WHAT HAPPENS LONG-TERM IN

THE FUTURE? I WOULD NOTE THAT ONE OF THEIR EXECUTIVES HAS A BOARD SEAT ON SPACEX, IMPORTANT TO KNOW. CAROLINE: WHEN YOU TAKE A ONE BILLION DOLLAR CHUNK, I IMAGINE YOU WANT TO BOARD SEAT. ED: EXACTLY. AND THAT SATELLITE COMMUNICATION, IT IS SLIGHTLY ANALOGOUS, ALTHOUGH I THINK WE SHOULD TRY THAT STORY OVER TIME. LET'S STICK WITH GOOGLE. ALPHABET POSTED FIRST QUARTER SALES BEATS AS THEIR SEARCH BUSINESS SAW STRENGTH DESPITE UNCERTAINTY. THE MORNING TECH ANALYSTS WRITING THAT WHAT WE BELIEVE OUR CONCERNS AROUND A SLOWDOWN AND ANTITRUST RELATED IMPACTS FOR THE ALPHABET BUSINESS, THAT'S VALID, WE THINK THE SELLOFF HAS BEEN OVERLY PUNITIVE, CREATING AN ATTRACTIVE BUYING OPPORTUNITY.

I THINK THAT THE SELLING YOU WERE A FEED -- REFERRED TO HIS YEAR TO DATE YOUR MAIN POINT FROM THE PRINT THAT WE GOT LAST NIGHT ABOUT THE SEARCH BUSINESS? >> THANKS SO MUCH FOR HAVING ME. WE REALLY LIKE TO THE REPORT. THE SEARCH BUSINESS IS CLEARLY SHOWING RESILIENCE. THERE HAS BEEN A LOT OF SORT OF INVESTOR CONCERNS ABOUT DISRUPTION HAPPENING AROUND GENERATIVE AI, CHATBOTS LIKE CHATGPT. BUT IF YOU LOOK AT THE NUMBER OF QUERIES AND THE NUMBER OF MONETIZE WILL COMMERCIAL FAIRIES , THEY ACTUALLY INCREASED. SO, THAT KIND OF STANDS IN CONTRADICTION TO THIS OVERALL NARRATIVE THAT INVESTORS HAVE JUMPED ON ABOUT THE DEATH OF GOOGLE SEARCH, WHICH WE DO NOT AGREE WITH.

ED: 1.5 BILLION MONTHLY USERS IS WHAT WE HEARD. AND PODCAST LISTENERS ON YOUTUBE , THE STRENGTH AND THE VASTNESS OF THE BUSINESS IS SIGNIFICANT, BUT THAT'S WHY IT IS TRYING TO BE BROKEN UP. ARE YOU FACTORING IN IN NEAR-TERM SENSE THE IMPACT ON THE SALE OF CHROME OR THE ABILITY TO HAVE TO SHARE THE DATA? >> WHEN WE THINK ABOUT ANTITRUST, IT'S IMPORTANT TO SEPARATE NEAR-TERM AND LONG-TERM . THERE'S VERY LITTLE ACTUAL BUSINESS RISK WHERE ALPHABET REPEALS THE DECISION THAT THEY PUT OUT IN THE SUMMER OF THIS YEAR. THAT HE APPEALS PROCESS MAY TAKE SOME TIME. AS LONG-TERM INVESTORS GO,

THAT'S STILL A VALID CONCERN. THE WAY WE THINK ABOUT IT IS THAT THERE IS A RANGE OF ANTITRUST OUTCOMES AND WE THINK THAT SOME OF THE MORE VALUE DISRUPTIVE REMEDIES, LIKE CHROME OR POTENTIAL DIVEST AROUND ANDROID, WE DON'T THINK IT'S LIKELY. WE THINK THAT MORE BEHAVIORAL REMEDIES, LIKE THE END OF EXCLUSIVE REVENUE-SHARING AGREEMENTS, OR EVEN CERTAIN OTHERS, LIKE, YOU KNOW, CHANGES THAT ALPHABET WOULD HAVE TO MEET WITH THEIR DEALS, WITH THE OEMS AND BROWSERS, WOULD PROBABLY, YOU KNOW, BE AT THE FOREFRONT OF THE EVENTUAL REMEDY AND THAT'S WHAT WE ARE MODELING. CAROLINE: GREAT TO HAVE YOUR ANALYSIS FROM MORNINGSTAR. THANK YOU. ANOTHER NAME WE ARE WATCHING TODAY IS INTEL. SHARES ARE DOWN AFTER A BLEAK

SECOND QUARTER FORECAST. IN AN INTERVIEW WITH YOU, ADD TO, THE CFO SAID THE FIRST QUARTER SAW AN UPSIDE FROM TARIFFS IN THAT IT PROBABLY PULLED DEMAND TO SOFTEN UP THE SECOND QUARTER. FOR MORE, WE HAVE DAVID O'CONNOR JOINING US NOW. YOU GOT UNDER PERFORM AT A $19 PRICE TARGET IN THERE WE ARE, $19, ERASING ALL OF THE GAINS ON THE STOCK. RIGHTLY SO, FROM YOUR PERSPECTIVE.

JUST DIDN'T GET ENOUGH FROM THE CEO ABOUT HOW THEY WILL RECTIFY THE BUSINESSES? DAVID: THANKS FOR HAVING ME ON. ABSOLUTELY. THE MOON WAS REFLECTING TARIFF CONCERNS TODAY. INVESTORS DIDN'T LIKE THE MESSAGE ON RESTRUCTURING.

WE THOUGHT IT WAS A KIND OF POSITIVE MESSAGE ABOUT WHAT NEEDS TO BE DONE TO RESTRUCTURE BUSINESS. BUT THE OVERRIDING TAKE AWAY FROM INVESTORS IS THAT IT'S GOING TO TAKE A LONG TIME. ED: ON THE ONE HAND THEY SAID THEY ARE ONLY GOING TO GIVE IT THE BENEFIT OF THE DOUBT, BUT ON THE OTHER HAND THEY SAY CUTTING IS NOT A STRATEGY TO FIX THE PROBLEM THE PRODUCTS. HOW MUCH TIME ARE YOU WILLING TO GIVE THEM IN TERMS OF THE BENEFIT OF THE DOUBT ON BOTH OF THOSE THINGS? DAVID: I THINK THERE IS A LOT OF GOODWILL IN THE INDUSTRY. HE KEEPS REITERATING THAT THIS WILL TAKE TIME. THE ISSUES THEY ARE FACING ARE

NOT QUICKFIX. THEY ARE NOT REALLY ON THE STRATEGY SIDE OF THINGS. IT'S MORE ABOUT EXECUTION. THAT IS WHERE THEY HAVE FALLEN DOWN IN THE PAST. HE'S ACKNOWLEDGED THAT AND IS TAKING DECISIVE ACTION, NOW. HE HAS TALKED ABOUT CHANGING THE CULTURE AT INTEL, WHICH WE HADN'T HEARD BEFORE. ADDING LAYERS OF BUREAUCRACY.

GOING BACK TO A FOCUS ON PRODUCTS AND BEING ENGINEERING DRIVEN. THIS ONLY, BUT IT HAS TAKEN TOO MANY YEARS, IN OUR VIEW TO, TO GET THERE. SHORT-TERM VIEW, FIRST THING THEY NEED TO DO IS STABILIZE MARKET SHARE. STABILIZE IT IN PCS, SERVERS. THIS HAS BEEN THEIR CORE PROBLEM WHERE THEY LOST SHARE. ED: DAVID O'CONNOR, THANK YOU VERY MUCH. COMING UP REID HOFFMAN JOINS US TO TALK ABOUT HIS LATEST AI STARTUP AIMING TO CURE CANCER.

THE BROADER AI AND POLITICAL LANDSCAPE, THERE'S MUCH TO DISCUSS. THAT IS NEXT. THIS IS "BLOOMBERG TECHNOLOGY." FIND THE NUMBER TECHNOLOGY PODCAST ON APPLE, I HEARD. THIS IS BLOOMBERG. ED: A TOP TECHNOLOGY STORY TODAY, THE TRUMP ADMINISTRATION IS PUTTING PRESSURE ON EUROPE TO DITCH STRICT RESTRAINT -- STANDARDS FOR AI DEVELOPERS. THE EU SAYS THE VOLUNTARY FRAMEWORK IS INTENDED TO HELP TECH COMPANIES COMPLY. THE U.S. CALLS AT ANOTHER EXAMPLE OF

OVERREACH THAT UNFAIRLY TARGETS AMERICAN COMPANIES. JOINING US TO DISCUSS THAT STORY, HIS OWN WORKING AI, INVESTING, AND GLOBAL TRADE WARS, REID HOFFMAN, COFOUNDER OF LINKEDIN, INFLECTION, AND MANUS, JOINING US HERE IN SAN FRANCISCO. WELCOME TO THE PROGRAM. THANK YOU FOR COMING BACK. YOU HAVE AN EXPERIENCE OF WORKING ACROSS JURISDICTIONS. THIS ADMINISTRATION PROCESS APPROACH TO THE AI INDUSTRY IN THAT SPECIFIC PIECE OF NEWS ON THE AI ACT, HOW DO YOU INTERPRET IT? REID: BROADLY I THINK THE EUROPEAN UNION IS TOO MUCH REGULATORY OVER ADJUSTING. I AGREE ON THE GENERAL OVERREACH PART.

IT'S ACTUALLY BAD FOR EUROPE. IT'S NOT JUST A QUESTION OF DIFFERENT PHILOSOPHIES. I ALREADY KNOW OF U.S. TECH COMPANIES THAT ARE DEPLOYING OUTDATED OR OLDER MODELS TO GO THROUGH THE CERTIFICATION PROCESS AND THEY GO FINE, LEAVE THAT. THEY DO THE NEXT YEAR AND DEVELOPMENT, IT HAPPENED SO FAST THAT IT'S MUCH LESS GOOD FOR CONSUMERS AND INDUSTRY. THIS SPECIFIC ONE IS ACTUALLY MORE ON THE QUESTION OF THE REGULATIONS IN THE ACT.

THE ACTUAL PLAYBOOK AS I UNDERSTAND IT IS TO SAY HERE IS YOUR SAFE HARBOR BOUNDARY, THAT'S A GOOD THING TO DO IN GENERAL AND REGULATION. HEY, IF YOU DRIVE IN THESE LINES, THERE ARE NOT UNSPECIFIED LIABILITIES. STABILITY IS BACK A GOOD THING FOR THE DEVELOPMENT OF BUSINESS. THAT IS PROBLEM AS PART OF THE PROBLEM OF THE CRAZINESS AROUND TARIFFS. STABILITY IS IMPORTANT. ED: YOU MADE THE POINT THAT THEY MOVED TO CODIFY WHAT THEY WANTED THE RULES TO BE. THINKING ABOUT THE FIRST FOUR MONTHS OF THE ADMINISTRATION, WE HAD DAVID SACHS ON THE PROGRAM HAS THE AI'S ARE.

THEY HAVEN'T REALLY CODIFIED WHAT THEY BELIEVE THE RULES FOR AI SHOULD BE THE SAME WAY THEY DID WITH CRYPTO. WOULD YOU AGREE? REID: YES. BUSINESS NEEDS STABILITY, EVEN IF YOU DISAGREE YOU KNOW HOW TO NAVIGATE IT. IT'S GOING TO COME, IT'S GOING TO GO, IT MAKES EVERYTHING RETRENCH. IT IS GOOD TO HAVE THAT KIND OF THING. THAT BEING SAID, WITH SUPER AGENCY AND THE BOOK I JUST PUBLISHED RECENTLY, IT'S THAT WE WILL HAVE SO MANY BETTER FEATURES FOR BOTH GREAT THINGS LIKE MEDICAL ASSISTANCE BUT ALSO SAFETY FEATURES IN THE FUTURE, WE SHOULDN'T TRY TO IMPEDE THAT THROUGH REGULATORY SLOWNESS. I AGREE WITH THAT PART.

BUT YOU ALSO WANT STABILITY AND CLARITY. THE RULEBOOK IS AN EFFORT IN THAT DIRECTION, AS I UNDERSTAND IT. CAROLINE: WITHOUT THAT STABILITY IN THE U.S., YOU ARE INVESTING

NONETHELESS. MANUS AI IS ABOUT REALLY IMPORTANT WORK WITH DRUG DISCOVERING AGAINST PROGRESSIVE CANCER. WHY DO YOU HAVE THAT COMMITMENT IN THIS ENVIRONMENT? REID: GENERALLY SPEAKING, I'M ALWAYS AN OPTIMIST, ALWAYS BUILDING FOR THE FUTURE NO MATTER WHAT. THAT'S HOW WE CREATE GOOD FUTURES BY SAYING THIS COULD BE GREAT. WITH MANUS TRYING TO CURE CANCER, THIS IS A MULTIYEAR EFFORT. MOST OF MY EFFORTS ARE LIKE 10

YEARS. YOU HOPE TO GET A KIND OF RETURN RESULT FOR ONE YEAR, TWO YEARS, THREE YEARS. BUT YOU ARE PLAYING IT OUT INTO THE FUTURE. THE FACT THAT THERE IS REGULATORY UNCERTAINTY AROUND AI IN THE U.S. RIGHT NOW DOESN'T KIND OF, YOU KNOW, IT DOESN'T SLOW DOWN ME. ED: IF I COULD COUNTER, MANUS AI, LONG-TERM PROJECT WITH INFLECTION AI, AND I NOTED YOUR POSITION ON THE MICROSOFT BOARD, YOU TURNED IT AROUND QUITE QUICKLY. WE CALL IT THE AQUA HIGHER.

IS THERE OPPORTUNITY FOR YOU TO DO THAT WITH MANUS AI IN A BIGGER BEAST, OR IS THAT NOT UNFIT -- OR IS THAT UNFAIR? REID: WHEN YOU ARE A SMART ENTREPRENEUR AND INVESTOR, YOU ARE ALWAYS THINKING HOW DO I TRANSFORM AND INDUSTRY BUT WHAT OF THE PIVOTS I WOULD MAKE ALONG THE WAY AS A PLAN B? THE SOLID DECISION AROUND INFLECTION WAS THAT THE CONSUMER AGENT, WHERE YOU HAVE TO SPEND MILLIONS BUILDING THE MODEL BEFORE YOU UNDERSTAND THE REVENUE, IT IS ACTUALLY IN FACT HARDER FOR STARTUPS TO DO. LIKE OK, LET'S CHANGE THE MODEL, IT'S STILL GOING, THEY GOT A WHOLE BUNCH OF DIFFERENT CLIENTS, DO THAT. THE CONSUMER THING WILL HAVE TO BE DONE BY OTHER PLAYERS. OBVIOUSLY, WE MADE A SIMILAR

DECISION WITH MANUS AND WE ARE NOWHERE CLOSE TO IT. OF COURSE WE HAVE VARIOUS PLAN BEES IN TERMS OF HOW WE OPERATE. THE GOAL IS TO ALWAYS CHANGE THE INDUSTRY. CAROLINE: AND PROSPER. YOU TALK ABOUT THIS COGNITIVE

INDUSTRIAL REVOLUTION THAT WILL HAVE SHORT-TERM PAIN. GOING BROADER PICTURE, SHORT-TERM TRAIT ANXIETY, HOW MUCH DOES THAT PLAY INTO THE FACT THAT THE BOGEYMAN WOULD LIKE TO MAKE OF CHINA IN THE U.S., IS CHINA GETTING AHEAD IN TERMS OF THEIR COGNITIVE INDUSTRIAL REVOLUTION BECAUSE OF THE INSTABILITY IN THE U.S.? REID: I DO THINK THAT ONE OF THE THINGS THE TARIFFS, THE CHERNOBYL CATASTROPHE IS ACTUALLY IN FACT HELPING CHINA ACROSS ITS ENTIRE INDUSTRY. FOR EXAMPLE, EUROPE SAYS WELL, IF CHINA IS A MORE STABLE TRADING PARTNER FOR NOT JUST MANUFACTURING BUT TECHNOLOGY AND THE REST AND WE CAN RELY UPON THEM BETTER, IT CREATES BETTER GLOBAL MARKETS FOR CHINA AND WORSE FOR THE U.S.. PART OF BEING SMART ABOUT WHAT WE ARE TRYING TO DO IS WE WANT TRADING PARTNERS AND TRADING ALLIES FOR OUR OWN INDUSTRIES IN OUR OWN PROSPERITY, JOBS FOR AMERICAN CITIZENS. I THINK THAT IS CREATING --

IT'S FUNNY, THE RHETORIC OF COURSE IS COMPETITION IN CHINA. THE ACTIONS IN TERMS OF, YOU KNOW, ATTACKING OUR ALLIES, FRIENDS, AND PARTNERS IS ANTI-OUR EFFORTS. CAROLINE: WHAT'S ALSO INTERESTING IS WHETHER OR NOT THOSE REAL WINNERS FROM CHINA COME TO THE U.S. THE LATEST NEWS IS AN AMERICAN

INVESTOR PUTTING MONEY INTO, NOT RELATED TO YOURS, MANUS AI, OWNED BY ANOTHER COMPANY, WHICH IS A CONSUMER AGENT. THEY ARE JUST PUTTING IN MONEY BECAUSE THEY WANT TO EXPAND THE CHINESE OFFERING HERE IN THE U.S. AND ABROAD. HOW DO YOU FEEL ABOUT THE WINS CHINA IS GETTING ON CONSUMER AGENCY SIDE AND IF CONSUMERS SHOULD INVEST? REID: I THINK COOPERATION AND COMPETITION IS A WAY TO APPROACH IT. YOU ARE BOTH COMPETING AND ALSO COOPERATING. I THINK IT CREATES BETTER PROSPERITY AND BETTER PEACE THROUGH THE WORLD. I'M ACTUALLY POSITIVE ON U.S. INVESTORS INVESTING IN KIND OF

GENERAL MARKETS AND ALL THE REST. OBVIOUSLY, A PART OF WHAT WE WANT IS LEVEL PLAYING FIELDS. WE WANT A KIND OF EQUAL ACCESS. I THINK THE GENERAL DISCOURSE WITH CHINA IS SAYING -- LOOK, YOU RESTRICT OUR TECHNOLOGY INDUSTRY FROM PLAYING IN YOUR FIELD, SO WE WILL PUT RESTRICTIONS ON YOU HERE. BUT THE INVESTMENT IS STILL GOOD. THE TIES ARE SO GOOD. I THINK THAT MANUS IS NOT PER SE LEADING IN THE AGENT SPACE.

I ACTUALLY SEE A BUNCH OF OTHER PLAYERS, NOT JUST OPENAI, ANTHROPIC, MICROSOFT, GOOGLE, BUT A BUNCH OF FOLKS ARE DOING VERY STRONG THINGS IN THERE IS NOTHING WE HAVE SEEN FROM THEM YET THAT SUGGESTS THAT THEY ARE AS YET CAUGHT UP TO SOME OF THE THINGS THAT ARE BEING BUILT WITHIN AMERICAN COMPANIES. ED: YOU LEFT OPENAI IN 2023. BUT WE HAVE HAD YOU ON THE PROGRAM BEFORE TO TALK ABOUT IT. IT IS, SHALL WE SAY, THE LEADER IN THE FIELD OF FRONTIER MODELS AND NOW BUSINESS AND CONSUMER FACING APPLICATIONS OF THAT MODEL.

I HAVE TO ASK YOU WHAT YOU THINK THE FUTURE OF OPENAI IS IN TERMS OF ITS STRUCTURE. YOU ARE CLOSE WITH SAM. YOU SPEAK WITH SAM. YOU MUST KEEP A FIRM EYE ON THAT COMPANY. REID: YES, BUT IN PART BECAUSE THEY ARE STILL DOING THEIR MISSION. THE REASON THEY ARE SHIFTING THE STRUCTURE IS TO REALIZE THE MISSION. GOING FROM A PUBLIC BENEFIT CORPORATION, ALLOWING THE BOARD OF DIRECTORS TO MAKE DECISIONS FOR THEIR MISSION SEPARATE FROM THE PROFIT LINE.

THAT IS THE WAY YOU GET CAPITAL COULD CONTINUE TO DO THAT. I THINK THAT OPENAI CONTINUES, IF PEOPLE HAVEN'T PLAYED WITH THEIR RECENT CHAIN OF THOUGHT MODELS, DEEP RESEARCH, I TRY TO DO A DEEP RESEARCH PROMPT EVERY DAY. I THINK IT GIVES YOU THE LENS TO THE AMPLIFICATION WE ARE GOING TO GET WITH THESE PRODUCTS AS WORKERS IN THE FUTURE. ED: I USE FLOW EVERY DAY AND I COMMUNICATE MORE WITH VOICE MODE . IT'S A PSYCHOLOGICAL THING THAT

YOU HAVE TO GET OVER AS A CONSUMER. THIS ENVIRONMENT, MORE BROADLY, A LOT OF CAPITAL IS BEING DEPLOYED. I NOTE THAT YOU ARE A BOARD MEMBER OF MICROSOFT. THE INFRASTRUCTURE QUESTION IS

STILL VERY BIG. HOW FAR AHEAD DO YOU SEE THE COMMITMENT TO CAPITAL EXPENDITURES ON THE INFRASTRUCTURE SIDE? IS THERE ANYTHING ABOUT THE WILLINGNESS TO DEPLOY CAPITAL THAT WORRIES YOU? REID: FUNDAMENTALLY? NO. IT DOESN'T MEAN WE MIGHT NOT IN THE FUTURE SAY THE MOST OPTIMUM USE WOULD BE A SLOWER RAMP, BUT BY SAYING WE DON'T DO THE INVESTMENT AND THEN WE FALL BEHIND IN BUILDING THOSE FRANCHISES OR WE DO DO THE INVESTMENT AND ITS EARLY AND AGGRESSIVE, THE 2 X 2 MATRIX BY FAR GOES UP STRATEGICALLY AGGRESSIVELY.

THE FACT THAT AI WILL REDEFINE INTEREST, THAT'S NOT IN DOUBT. THE ONLY REAL QUESTION IS WHAT YEAR. THIS YEAR, NEXT YEAR, THE YEAR AFTER? GOING AGGRESSIVE IS THE RIGHT STRATEGIC MODEL FOR STARTUP COMPANIES AND, OF COURSE, LARGE TECH GIANTS. CAROLINE: CAN YOU REMAIN BOLD IN THIS ENVIRONMENT WHEN YOU SEE THINGS CHANGING? WHEN WE ARE TRYING TO GET ANY KIND OF GUIDANCE IN THIS EARNINGS SEASON.

HOW MUCH ARE YOU SEEING A FREEZING OF BUSINESS AS WE KNOW IT? REID: SO FAR WHAT I HAVE SEEN IN EVERY MAJOR AI COMPANY IS A COMMITMENT TO GO WAS BOLD AS THEY POSSIBLY CAN. I THINK IT'S ACTUALLY A GOOD THING. LIKE WHAT WHAT I WAS SAYING, IF YOU GO WELL, IT WILL WORK OR NOT WORK IN THE NEXT THREE YEARS -- THREE YEARS FOR GENERATING BUSINESS RETURNS, GOING HEAVY ON INVESTMENT, THEY CAN'T -- CHANCE OF GETTING CAUGHT WELL BEHIND AT ALL SIDES IS A MUCH WORSE OUTCOME THAN HEY, IF I MADE A MISTAKE AND I INVESTED A LITTLE BIT TOO MUCH IN INFRASTRUCTURE AND CAPEX, 25, 26, WE KNOW THAT ADDING INTELLIGENCE TO EVERYTHING -- FOR EXAMPLE, ONE OF THE INTERESTING QUESTIONS ON A PROGRAM LIKE THIS WOULD BE -- WHAT IS IT, AND THIS IS A SMALL AND NUMBER OF YEARS, THAT WE WILL HAVE AN AI AGENT WITH US TO DO THESE PROGRAMS SAYING -- LET'S ASK THESE QUESTIONS AND HERE A RELEVANT FACT. THE ANSWER TO THAT IS SMALL. TWO? FOUR? CAROLINE: DON'T WORRY, I'M USING ONE NOW. [LAUGHTER] BOLDNESS. YOU HAVE BEEN BOLD AND CONTINUING YOUR POLITICAL GIVING THIS YEAR AS WELL. IN THE WISCONSIN RACE, THAT WAS

MORE ABOUT JUDGES. I'M INTERESTED AS TO WHAT YOU ARE STILL FEELING IN TERMS OF YOUR POLITICAL AGENDA AND HOW MUCH YOU HAVE FELT THE IMPACT ON THE MONEY YOU HAVE GIVEN TO ULTIMATELY THE LOSING SIGHT OF THE CURRENT ADMINISTRATION. REID: FUNDAMENTALLY I'M STILL AN AMERICAN, AND HOW WE BUILD PROSPERITY HERE. EVERYTHING I DO IS IN THAT SECTOR. THAT IS PART OF THE REASON WHY

I FOR EXAMPLE, WHEN THE PRESIDENT WAS INAUGURATED, I WASN'T SAYING VERY MANY THINGS. I WANTED IT TO BE AS MANY GOOD THINGS TO COME OUT OF THAT IS POSSIBLE. I THINK THAT'S WHAT WE ALL WANT. LOOK, I'M STILL HOPEFUL FOR A KIND OF CHANGING ENERGY REGULATION. GETTING ADVANTAGES FROM THAT. I'M SO HOPEFUL FOR -- CAN WE APPLY SOFTWARE TO MAKE GOVERNMENT MUCH MORE EFFECTIVE? I WOULD RATHER SEE THAT THAN ILLEGAL DEPORTATIONS.

I WOULD RATHER SEE THAT THAN TRADE WARS THAT ARE DAMAGING TO EVERYDAY AMERICAN CITIZENS. THAT'S WHAT I'M STILL HOPEFUL FOR. I'M STILL INVESTING IN THAT ARENA. ED: WHICH IS VERY MUCH IN LINE WITH WHAT DOGE PURPORTS TO BE AFTER. CAN YOU GIVE US YOUR TAKE? REID: IF YOU SAID FIRST WE BUILD DATA ANALYTICS TO UNDERSTAND EVERYTHING AND THEN WE DO THINGS WHERE WE RE-FACTOR THAT IN, THAT MIGHT HAVE LED TO A VERY GOOD PROCESS AT THE BIG. GOING IN AND SING FIRST WE WILL

SHUT OFF ALL PAYMENTS AND BREAK EVERYTHING, THAT'S LIKE A DISASTROUS WAY TO DO THESE KINDS OF THINGS. SO, I THINK THEY ARE DOING A BUNCH OF LESS REPORTED GOOD WORK ON TRYING TO MAKE HR RECORDS KIND OF MORE DIGITAL, PROCESSING ALL OF THAT IN A MORE ECONOMICALLY EFFICIENT WAY, THAT'S GREAT. ON THE OTHER HAND, I THINK THAT THEY, LIKE ALL THE REPORTED CASES, EVERYTHING FROM A CATASTROPHIC MISHANDLING OF THE UNIVERSITY SYSTEM, LIKE NOT UNDERSTANDING THAT WHEN YOU SHIFT THE OVERHEAD YOU BASICALLY ARE SAYING WE ARE NOT FUNDING SCIENCE LABS ANYMORE. SCIENCE LABS? SCIENCE IS ONE OF THE WAYS WE GOT OUR AMERICAN TECHNOLOGY ADVANTAGE. IT'S LIKE SAYING HEY, LET'S PUT CONCRETE OVERSHOES ON BOTH LEGS AND RUN A MARATHON. NO, DON'T DO THAT. BEING SMARTER ABOUT -- I DON'T MEAN GRADUAL, BUT ITERATIVE.

UNDERSTAND FIRST, THEN ACT. AS OPPOSED TO JUST LIKE, YOU KNOW, LIKE BLOW IT UP AND FIGURE OUT IF THERE WAS ANYTHING GOOD HERE. CAROLINE: SPEAKING OF HR AND CHANGES, THE TOOL YOU BUILT WITHIN HUMAN RESOURCES, LINKEDIN, CHANGING AT SUCH A RAPID PACE RIGHT NOW. I FEEL SO IS SOCIAL MEDIA MORE BROADLY. BRIEFLY, HOW DO YOU LIKE THE LEAK -- THE LOOK OF LINKEDIN RIGHT NOW AS WE SWARM IT WITH OUR HIGH AND VIDEOS? REID: WELL, THANK YOU FOR SWARMING IT. OBVIOUSLY, I HAVE A SENSE OF PRIDE AND HAPPINESS WITH LINKEDIN OVERTIME. I THINK WE HAVE STAYED VERY

TRUE TO OUR FOCUS, HOW DO WE HELP PEOPLE WITH THEIR ECONOMIC LIVES , WITH JOBS, HELPING PEOPLE TO UNDERSTAND THE BUSINESS WORLD. I THINK THAT MISSION IS TRUE. THERE'S ALWAYS MORE WORK. ASK A PRODUCT TECH FOUNDER ABOUT WHAT THERE IS AND HE SAYS -- THERE'S A LOT MORE TO DO. THE LINKEDIN TEAM IS DOING A GREAT JOB.

FIRST TIME OVER THE YEARS WE GOT TO ACTUALLY ASK YOU ABOUT LINKEDIN. WE RECOGNIZE THE GROWTH THERE. REID HOFFMAN, THANK YOU FOR THE EXTENDED CONVERSATION HERE. CAROLINE: WHAT A CONVERSATION AND WHAT A WAY TO WRAP UP AN EXTRAORDINARY WEEK. SO MUCH TO CHECK OUT ON

"BLOOMBERG TECHNOLOGY." ED: IT'S AGAIN ON THE WEEK. NASDAQ 100 A BIT MORE MUTED. TESLA, PUSHING HIGHER. MORE FROM THE FEDERAL GOVERNMENT ON REGULATION.

GOING BACK TO INTEL, YOU KNOW THE CONVERSATION WE HAD WITH THE CFO? IT'S A STREAMLINING ON THE TECH PRODUCT REFOCUS THAT WILL COME LATER. FROM NEW YORK, SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY."

2025-04-30 21:01

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