The DOJ Goes After Google Chrome | 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." COMING UP, WILL GOOGLE BE FORCED TO SELL OFF ITS CHROME BROWSER? WE DISCUSSED THE LATEST IN THE LATEST -- WE DISCUSS THE LATEST. PLUS, IMPROVING CONTROLS ON ROADBLOCKS --
ROBLOX. SPACEX READIES FOR ANOTHER STARSHIP LAUNCH WITH PRESIDENT-ELECT DONALD TRUMP SET TO ATTEND, BUT FIRST WE CHECK IN ON THESE MARKETS. DESPITE THE GEOPOLITICAL HEADWINDS, RUSSIA, UKRAINE, WE PUSH HIGHER JUST ABOUT 0.1% ON THE NASDAQ ONE HIGHER, HIGHER
STILL ON THE NASDAQ. THAT IS TO STRAIGHT DAYS OF GAINS WHEN LOOKING AT BIG TECH -- TWO STRAIGHT DAYS OF GAINS WHEN LOOKING AT BIG TECH. LET'S GO INTO THE INTRICACIES OF WHAT IS HAPPENING WITH GOOGLE IN TERMS OF ITS PRICE POINT BECAUSE WE STARTED OFF THE DAY TRADING LOWER. ANXIETY AROUND THE BUILDING ANTITRUST CRESCENDO AROUND THIS PARTICULAR COMPANY, AND MAYBE WE PUSH INTO THE GREEN UP 0.4%.
IS THERE A SLIGHT RELIEF RALLY THAT IT IS NOT BEING FORCED TO SELL OFF ANDROID? WE GET INTO IT NOW WITH MICHAEL SHEPPARD IN WASHINGTON BECAUSE IT IS AN INTERESTING STOCK MARKET REACTION HERE. MANY WOULD SAY THE CLOUDS OF ANTITRUST CONSENT STILL SIT ON THE VALUATION OF GOOGLE, BUT GET INTO WHAT WE ARE LEARNING IN TERMS OF THE DOJ LOOKING TO TREAT THE TRUST ISSUE FROM THAT PERSPECTIVE. >> FIRST CREDIT TO OUR COLLEAGUES FOR BREAKING THE NEWS ABOUT WHAT THE JUSTICE DEPARTMENT AND STATE ANTITRUST REGULATORS ARE THINKING ABOUT ASKING A JUDGE IN THE WAY OF REMEDIES IN THIS HISTORIC CASE. THIS DATES TO THE AUGUST RULING IN WHICH A JUDGE IN WASHINGTON FOUND THAT GOOGLE HAD ILLEGALLY MONOPOLIZED THE MARKET FOR SEARCH GLOBALLY.
AND NOW, THEY ARE LOOKING FOR HOW TO MAKE THIS RIGHT FOR CONSUMERS AND FOR WEBSITE OPERATORS AROUND THE WORLD. THE ONE STEP OF COURSE BEING CONSIDERED IS FORCING THEM TO SELL OFF CHROME, THE BROWSER. IT IS ONE OF THE WORLD'S MOST WIDELY USED BROWSERS. BUT OTHER MEASURES BEING
CONSIDERED ALSO INCLUDE REQUIRING THE COMPANY TO LICENSE ITS SEARCH RESULTS AND DATA AND ALSO GIVING WEBSITES THE OPTION OF OPTING OUT OF HAVING THEIR CONTENT USED TO HELP GOOGLE BUILD ITS ARTIFICIAL INTELLIGENCE PLATFORMS. CAROLINE: ONCE AGAIN, GOOGLE, ALPHABET, THE PARENT COMPANY OF GOOGLE, SPEAKS OUT SAYING THESE ARE RADICAL STEPS BEING TAKEN BY THE U.S. GOVERNMENT AND SORT OF PUTTING THEIR COME ON THE SCALE IS HOW GOOGLE HAS BEEN ARTICULATING IT. THE INTRICACIES AROUND SELLING DATA AND SHARING DATA IS A TOUGH ONE. MANY IN THE MARKET SAY THIS WILL TAKE YEARS TO ENFORCE.
YOU WILL SEE AN APPEALS PROCESS. BUT MORE BROADLY, YOU WILL POTENTIALLY SEE OTHER REMEDIES COMING TO LIKE THAT GOOGLE COULD -- WHAT DO WE THINK THE REACTION WILL BE? MICHAEL: THIS WILL PLAY OUT OVER A LONG TIME, AND I AM GLAD YOU BROUGHT THAT UP IN TERMS OF THE CLOCK HERE. THE JUDGE SET A TWO WEEK HEARING IN APRIL TO ACTUALLY WALK THROUGH SOME OF THE POTENTIAL REMEDIES THE DOJ AND ANTITRUST REGULATORS AT THE STATE LEVEL ARE OFFERING. AND THAT WILL GIVE THE TIME, AND THEN WE HAVE TIME TO THE COMPANY TO THINK ABOUT, WHAT CAN WE OFFER PERHAPS AS A SETTLEMENT? WHAT ELSE CAN WE DO? WHAT IS MAY BE A MIDDLE GROUND THAT COULD SATISFY SOME OF THE CONCERNS BEING RAISED BY GOVERNMENT AUTHORITIES? LIKEWISE, THE JUDGE HIMSELF IS NOT EXPECTED TO RULE UNTIL AUGUST 2025. THAT IS ALMOST A YEAR FROM HIS ORIGINAL RULING. AND THEN AFTER THAT WE WILL GO THROUGH AN APPEALS PROCESS. AND GIVEN THE STAKES FOR
ALPHABET IN THIS CASE, THEY ARE LIKELY TO TAKE THIS APPEAL ALL THE WAY TO THE U.S. SUPREME COURT EVENTUALLY. CAROLINE: BECAUSE THIS WOULD HAVE A MAJOR BUSINESS IMPACT. THE WAY IN WHICH THEY CAN SEE WHO I AM WHEN I USE CHROME, WHICH HAS ABOUT 60% OF THE MARKET FROM A BROADER PERSPECTIVE, AND THEN GO ACROSS TO THE SEARCH FUNCTION WHICH IS 90% OF THE MARKET AND ALL OF THE DATA THEY ARE IN, AND THEY CAN TARGET ME BETTER WITH ADS. THIS WOULD BE A BIG BUSINESS MODEL CHANGE, AND MANY OUT THERE ARE WONDERING WHO WOULD BUY CHROME IF IT WAS FORCED. MICHAEL: IT IS A GOOD QUESTION AGAIN ON WHO WOULD BUY CHROME BECAUSE THE PRICE FOR IT WOULD PRECLUDE MANY FROM EVEN TRYING TO PICK IT UP.
AND A FEW BUYERS OUT THERE WITH THE RESOURCES TO PULL IT OFF, PERHAPS AMAZON.COM OR EVEN OPENAI, AN ATTEMPT BY THEM TO PURCHASE THIS COULD RAISE SEPARATE ANTITRUST QUESTIONS THAT THE GOVERNMENT MAY BE EAGER TO AVOID. LIKEWISE AS YOU POINT OUT, THIS ESSENTIAL CENTRAL TO ALPHABETS BUSINESS. THEY USED -- ALPHABET'S DATA, THE USE THE DATA TO TARGET BETTER AND TO CRAFT A BETTER VERSION OF THIS GEMINI AI PLATFORM THAT THEY ARE DEVELOPING. WE SAW IT IN THEIR MOST RECENT RESULTS.
THEY REALLY POINTED TO SEARCH SOMETHING THAT IS DRIVING THIS BET ON AI, AND THEY REALLY WOULD LIKE TO KEEP THIS GOING IF THEY CAN. CAROLINE: AI OVERVIEWS, ALL ANYONE SEES NOW WHEN THEY TYPE IN FOR SEARCH. FOR BROADER MARKET PERSPECTIVE AND THE LEGAL REALITIES, SARAH IS A SENIOR FELLOW AT THE TECH INSTITUTE. I MEAN, JUST PUT YOUR THUMB ON THE SCALES AS GOOGLE IS PUSHING BACK ON THE GOVERNMENT FOR SO DOING. DO YOU THINK THIS HAS ANY CHANCE OF GOING THROUGH? THAT SOMETHING AS SEISMIC AS CHROME BEING SOLD OFF WOULD HAPPEN? >> I THINK PERSONALLY IT IS UNLIKELY. IT WAS UNCHALLENGED CONDUCT IN THE DECISION, SO IF YOU GO BACK AND READ THE 286 PAGE DECISION FROM AUGUST 5 -- CAROLINE: THANKS FOR DOING THAT FOR US. SARAH: YEAH.
THERE IS DISCUSSION ABOUT THE CONTRACTS AND THE PRELOADING OF THE GOOGLE SPEAK AND A LITTLE BIT ON THE CHROME BROWSER. BUT UNCHALLENGED CONDUCT WAS THE SEARCH BAR IN THE CHROME WINDOW. SO THAT WAS NOT CHALLENGED AT TRIAL. SO, YOU KNOW, THERE WOULD HAVE TO BE A FACT-FINDING AND A DISCUSSION OF THE BROWSER MARKET IN THE APRIL HEARING. LIKE THE PRIOR SPEAKER SAID, AUGUST 2025 IS WHEN A DECISION WILL COME OUT ON REMEDIES. AND ALSO OF NOTE, GOOGLE HAS AN OPPORTUNITY TO SUBMIT THEIR PROPOSED REMEDIES DECEMBER 20.
SO IT REALLY IS AN ONGOING PROCESS. THE LAST TWO BIG CASES, MICROSOFT AND AT&T, TOOK NEWLY A DECADE TO RESOLVE. CAROLINE: AND MICROSOFT APPEALED SUCCESSFULLY. AT&T LESS SO.
SARAH, DO YOU THEREFORE THINK OTHER CHANGES COULD BE MADE TO FIGHT THE IDEA THAT GOOGLE IS MONOPOLISTIC IN SEARCH? WHAT COULD GOOGLE ENACT ITSELF? SARAH: WELL, I THINK AT ISSUE ARE THE CONTRACTS. SO THE WAY THEY CONTRACT WITH SAMSUNG OR THE OTHER OEM PROVIDERS. THAT COULD CHANGE. BUT EVEN SO, THERE IS SO MUCH DYNAMISM IN THE MARKET. SAMSUNG UPLOADS ITS OWN BROWSER. I READ THAT IN THE DECISION. OTHER ANDROID PLATFORMS, THEY HAVE THEIR OWN BROWSERS. AND SO I THINK RIGHT NOW THE MARKET IS SO DYNAMIC TOO WITH AI SEARCH WINDOWS.
YOU KNOW, THE WAY GOOGLE RESPONDS WILL HAVE TO REFLECT WHAT IS HAPPENING IN THE AI MARKET. CAROLINE: LET'S JUST TALK ABOUT AI AND THE DATA THAT MAY BE THEY WOULD BE FORCED TO LICENSE -- MAYBE THEY WOULD BE FORCED TO LICENSE IN SOME WAY. WOULD THAT AFFECT THE REST OF THE MARKET, NOT JUST GOOGLE? SARAH: RIGHT. OPERATIONALLY, THAT WOULD BE DIFFICULT TO WORK THROUGH SO THAT WOULD ALSO BE A YEARS LONG PROCESS.
I DON'T KNOW HOW GREAT LAWYERS ARE AT PRODUCT DESIGN. SO TO THE EXTENT THAT -- I MEAN, THERE IS SOME TALK THEY MAY HAVE LICENSING TERMS -- FRAND LICENSING TERMS IN THE REMEDIES. THAT IS SOMETHING FAMILIAR IN THE INTELLECTUAL PROPERTY AND STANDARDS WORLD, BUT THE LEVEL OF DATA SHARING AN OPENING THAT PIPELINE OF AI DATA, THAT WOULD BE A VERY NEW TYPE OF REMEDY. CAROLINE: WE CAN SEE FROM THE SHARE PRICE THE MARKET IS NOT FREAKING OUT ABOUT THIS, BUT THERE DOES SEEM TO BE A CLOUD OVER GOOGLE FOR THE NEXT FEW YEARS, MAYBE EVEN DECADE AS YOU WERE SAYING.
WHAT ABOUT AN ADMINISTERED AND CHANGE IN 2025? DOES THAT BEAR ANY THOUGHT FOR YOU? SARAH: YES. WHAT IS INTERESTING IS THE FIRST TRUMP ADMINISTRATION BROUGHT THE SUIT. SO YOU HAVE THAT. ALTHOUGH, THE ASSISTANT AG RECUSED HIMSELF.
THIS CASE HAS A LONG HISTORY SO FAR. YOU HEAR KIND OF MURMURS ABOUT THE NEXT ADMINISTRATION WANTING TO CONTINUE ACTIVITY. BUT THE SAME TIME, YOU KNOW, THEY SEEM TO BE MORE PRO-INNOVATION AND TECHNOLOGY. WE WILL SEE WHOEVER IS ATTORNEY GENERAL AND ASSISTANT ATTORNEY GENERAL, AT LEAST INSIDE THE BELTWAY WE ARE ALL KIND OF GUESSING WHO IT COULD BE. CAROLINE:
SARAH, WE APPRECIATE THE TIME AND ANALYSIS. MEANWHILE, TALKING OF REVELATORY LANDSCAPE, IN THE U.K., GOOGLES PARTNERSHIP HAS AVOIDED -- GOOGLE'S PARTNERSHIP HAS AVOIDED FOR THIS WHICH ANY EFFORT IT DOES NOT QUALIFY UNDER MERGER RULES. GOOGLE HAS NOT GAINED "MUCH OF REAL INFLUENCE" OVER ANTHROPIC, WHICH INCLUDES A $2 BILLION INVESTMENT AND A CLOUD AGREEMENT. COMING UP, SCALING SAFE AI GOVERNANCE.
WE WILL BE JOINED BY NAVRINA SINGH ON A NEW PARTNERSHIP WITH MICROSOFT. CAROLINE: MICROSOFT WANTS TO MAKE IT EASIER TO SWITCH BETWEEN LARGE LANGUAGE MODELS WITH ITS NEW TOOL AZURE AI FOUNDRY, WHICH COULD HELP CLOUD CUSTOMERS BUILD AND DEPLOY AI APPLICATIONS. THE COMPANY IS GIVING AWAY THE SOFTWARE IN THE HOPES OF PERSUADING CORPORATE CUSTOMERS TO BUY MORE OF ITS CLOUD SERVICES. WE HAVE MORE ON WHAT IS BEING
UNVEILED AT THE ANNUAL EVENT IN CHICAGO. AND REALLY THE UNDERLYING PROCESS IS WHAT? PEOPLE FEEL LIKE THEY CANNOT FLIP FROM ONE GREAT MODEL TO ANOTHER. >> THE WHOLE PRODUCT IS MEANT TO MAKE IT EASIER TO GET YOUR MODELS PROGRAMMED, UP AND RUNNING, AND DEPLOYED, BUT WE ARE SEEING THIS CONSTANT JUMPING OF NEW MODELS COMING OUT, WHETHER IT IS OPENAI UPDATING THEIR MODELS AND ONE OF THEM IS BETTER FOR REASONING, ONE OF THEM IS BETTER FOR ANSWERING QUESTIONS THAT ARE MORE CONVERSATIONAL, AND THEN THERE ARE NUMEROUS COMPETITORS MICROSOFT HAS -- COMPETITORS. MICROSOFT HAS 1700, 1800 DIFFERENT MODELS THROUGH THIS SERVICE. SO YOU FIGURE OUT WHAT IS THE RIGHT ONE AND HOW DO YOU SWITCH IF YOU WANT TO UPDATE OR TRY SOMETHING DIFFERENT? THIS SOFTWARE HAS A BUNCH OF DIFFERENT TOOLS THAT ALLOWS YOU TO EXPERIMENT WITH DIFFERENT BOTTLES, SEE WHICH ONE WORKS BETTER, SWITCH MORE EASILY, TRACK WHAT IS WORKING AND WHAT ISN'T. SO IF YOU WANT TO PUT YOUR OWN CORPORATE DATA INTO SOMEONE ELSE'S MODEL IN ORDER TO FIND TUNE IT -- FIND TUNE IT, YOU WANT TO KNOW IF IT IS -- FINE TUNE IT, YOU WANT TO KNOW IF IT IS MAKING IT BETTER.
CAROLINE: AND THEY WANT PEOPLE TO SPEND MORE MONEY BECAUSE THEY ARE HAVING TO SPEND A LOT OF MONEY TO INVEST IN CHIPS FOR EXAMPLE. THEY ARE BUILDING THEIR OWN AND SHOWING HOW NVIDIA'S CHIPS WILL BE WORKING THROUGH THEIR SYSTEM. CAN YOU TALK US THROUGH THAT? DINA: TODAY THEY HAVE SAID IT IS HANDLING CUSTOMER WORKLOADS IN THE AZURE OPENAI SERVICE. THEY ALSO ANNOUNCED TWO NEW CHIPS TODAY. ONE OF THEM IS FOR SECURITY THAT WILL GO AND MICROSOFT'S OWN DATA CENTERS TO SECURE THEM. AND ONE IS BASICALLY A NETWORKING CHIP THAT TAKES A BUNCH OF THE DATA CRUNCHING OFF OF THE OTHER CHIPS IN ORDER TO MAKE THINGS FASTER. SO THEY ARE NOW INCREASINGLY
GETTING INTO THE POSITION AMAZON HAS BEEN -- AMAZON WEB SERVICES HAS BEEN FOR A WHILE, COMING UP WITH A BUNCH OF THEIR OWN SHIPS FOR TESTS AND THINGS INSIDE THE DATA CENTER IN ORDER TO MAKE SURE MICROSOFT CAN DO A MUCH BETTER JOB OF TRAINING AI, SERVING APPLICATIONS, AND A BUNCH OF OTHER THINGS YOU WOULD USE MICROSOFT CLOUD FOR. THEY OBVIOUSLY STILL WORK VERY CLOSELY WITH NVIDIA. IT WILL TAKE A VERY LONG TIME IF EVER FOR AZURE TO BE ABLE TO REPLACE NVIDIA IN ITS DATA CENTER, EVEN IF THEY ARE MOVING SOME OF THE AI TRAFFIC ONTO THIS CHIP. BUT THE SAME TIME, I SPOKE TO THE CHIP DESIGN AND DEVELOPMENT PERSON AND SHE SAID EVERYTHING NEEDS TO BE OPTIMIZED AT EVERY LAYER TO GET THE BEST POSSIBLE PERFORMANCE BECAUSE MODELS ARE GROWING SO RAPIDLY. CAROLINE: WE THANK YOU.
FOR MORE ON WHAT IS COMING OUT OF MICROSOFT NAI, WE HAVE CREDO AI ANNOUNCING THEY ARE PARTNERING WITH A TECH GIANT TO END GOVERNANCE FOR APPLICATIONS WHICH WILL HELP COMPANIES SAFELY ADOPT SOLUTIONS BUT ENSURE COMPLIANCE IS THERE . NAVRINA SINGH IS JOINING US. HOW MUCH OF THE BLOCKER IS AROUND THE GOVERNANCE OF CLOUD AI? NAVRINA: CAROLINE, GREAT TO BE HERE TODAY. ONE OF THE THINGS WE FOUND IS THERE IS A MASSIVE GAP BETWEEN SOLUTIONS AND PRACTICAL BUSINESS APPLICATIONS, AND THE ONLY WAY TO ACCELERATE THAT GAP AND BRING AI INNOVATIONS TO IT IS THROUGH AI GOVERNANCE. SO THIS IS WHERE WE ARE VERY EXCITED TO ANNOUNCE OUR PARTNERSHIP TODAY WITH MICROSOFT AZURE AI FOUNDRY. AND CREDO AI AS YOU KNOW IS THE LEADING PROVIDER OF AI GOVERNANCE SOLUTIONS, SO I WANT TO EMPHASIZE THE THREE THINGS THIS PARTNERSHIP IS GOING TO BRING TO LIFE. ONE IS END TO END GOVERNANCE OF
AZURE AI APPS INCLUDING GENERATIVE AI MULTIMODAL ASSISTANCE AS WELL AS USE CASES. SECONDLY IS THIS COMPRESSIVE UNIFIED CONTROL THAT DINA WAS TALKING BUT WHICH IS NEEDED FOR DEVELOPERS AND GOVERNANCE LEADERS. LASTLY, THE SUPPORT FOR GOVERNING, ESPECIALLY THE CUTTING EDGE SYSTEMS THAT ARE GETTING BROUGHT TO LIFE EACH AND EVERY DAY LIKE GPT4. SO CREDO AI IS EXCITED TO PARTNER WITH MICROSOFT THROUGH AN INDEPENDENT GOVERNANCE THERE. CAROLINE: TALK US THROUGH THE GOVERNANCE LAYER. WHAT IS THE TECHNOLOGY THAT TABLES YOU TO MONITOR CONSISTENTLY, ENSURING THESE MODELS ARE DOING WHAT THEY SAY THE ARGUING AND DOING THAT WITH FAIR USE CASE AND ULTIMATELY NO BIAS, FOR EXAMPLE? NAVRINA: YEAH, ABSOLUTELY. SO CAROLINE, ONE OF THE CORE
THINGS WE ARE FINDING WITH ACCELERATING AI TRANSFORMATION AND INNOVATION IS SOMETHING CALLED AI ALIGNMENT. HOW DO YOU ACTUALLY ENSURE THAT YOU ARE MEASURING THE HEALTH OF THESE AI SYSTEMS AGAINST THE POLICIES, THE PRINCIPLES, THE REGULATIONS, AI STANDARDS THAT YOU CARE ABOUT? THIS IS WHERE CREDO AI MAKES THAT REALLY EASY FOR YOUR BUSINESS EXPERTS AS WELL AS AI EXPERTS TO ALIGN ON WHAT THAT LOOKS LIKE. AND ONCE YOU HAVE LEARNED WHAT THAT LOOKS LIKE, REALLY MEASURING YOUR AI SYSTEMS, MODELS, DATA SETS AGAINST THOSE REQUIREMENTS. AND THEN LASTLY, REALLY PUTTING THEM OUT IN A CONTINUOUS MONITORING RISK MANAGEMENT AND COMPLIANCE ENGINE SO THAT YOU CAN MAKE SURE YOU ARE ALWAYS IN ALIGNMENT. AND AS YOU CAN IMAGINE,
CAROLINE, THIS IS REALLY CRITICAL WITH THE AI AGENTS AND THE SYSTEMS THAT HAVE STARTED TO TAKE A LOT OF EXCITEMENT AND BUSINESS ORGANIZATIONS. CAROLINE: MICROSOFT TALKING A LOT ABOUT AI AGENTS TODAY. THE REAL WORLD IMPACT IS WHEN WE HEAR PEOPLE ARE ACTUALLY KIND OF PLATEAUING IN THEIR OWN USE, EMPLOYEES' USE OF AGENTS AI, GENERATIVE AI IN THE WORKPLACE BECAUSE THEY WILL BE DEEMED LAZY OR THEY DON'T UNDERSTAND WHAT THE GOD REST ARE FROM THOSE ABOVE THEM -- THE GUARDRAILS ARE FROM THOSE ABOVE THEM. NAVRINA: MOST OF THE ORGANIZATIONS, MORE
THAN 70% OF THEM, DO NOT HAVE GUARDRAILS IN PLACE. THIS IS WHERE CREDO AI SOLUTIONS BECOME CRITICAL BECAUSE WE ARE WORKING GOVERNANCE FROM A SAFETY NEST FOR AI INNOVATIONS. WHAT WE ARE FINDING IN THE COMPANIES WE WORK WITH, WHETHER IT IS MASTERCARD AND OTHERS, IS THAT WHEN YOU HAVE THE CLEARLY DEFINED GUARDRAILS, EMPLOYEES ARE MUCH MORE EXCITED TO USE THESE TECHNOLOGIES AT SCALE COMES WITH GOVERNANCE, WHAT WE WILL SEE IS MUCH MORE EXCITED AS WELL AS USE OF ARTIFICIAL INTELLIGENCE AND TRANSFORMATION WITHIN ORGANIZATIONS. CAROLINE:
DO YOU THINK ANY OF THAT REGULATORY GOVERNANCE, OUTLOOK, AND DESIRES WILL CHANGE UNDER THE NEXT ADMINISTRATION IN THE U.S.? NAVRINA: YOU KNOW, ONE OF THE EXCITING THINGS IS AI IS ACTUALLY CENTRAL AND COURT TO THE STRATEGY AND RESPECTIVE OF THE ADMINISTRATION -- NOT RESPECTIVE OF THE ADMINISTRATION. WE ARE LOOKING AT IT MORE HOLISTICALLY, SO MORE TO COME AT THAT -- WITH THAT BUT THERE IS EXCITEMENT ON HOW YOU USE AI FOR TRANSFORMING GOVERNMENT AS WELL AS MAKING SURE THE UNITED STATES COMPETITIVENESS IN THE WORLD CONTINUES TO STAY AT THE FOREFRONT. CAROLINE: NAVRINA SINGH, CREDO AI CEO, ON
THE NEW PARTNERSHIP WITH MICROSOFT. COMING UP, A NEW COMPLIANCE PLAN AND AUDITORS -- ON AUDITORS SENT MICRO SHARE IS SOARING. CAROLINE: LET'S CHECK IN ON THE SHARES OF SUPERMICRO, JUMPING AFTER THE COMPANY HIRED A NEW AUDITOR, FILED A PLAN TO COME INTO COMPLIANCE. BRODY FORD JOINS US. UP 33% BUT STILL WAY OFF OF OUR HIGHS. TALK US THROUGH WHY BDO FOR EXAMPLE IS NOW WITHIN TO WORK WITH SUPER MICRO COMPUTER. >> YEAH. IT IS QUITE A DRAMATIC EPISODE.
BACKING UP A LITTLE BIT, SUPERMICRO MISSED A DEADLINE TO FILE FINANCIALS BACK IN AUGUST. THEN THERE AUDITOR RESIGNED SAYING WE ARE NOT WILLING TO BE ASSOCIATED WITH THESE NUMBERS. THIS IS SCARY STUFF. YOU DO NOT SEE THIS TOO OFTEN. SO IT WAS UP TO THE WIRE HERE. SUPER MICRO HAD TO FIND A NEW AUDITOR TO AVOID DELISTING.
ON THE VERY LAST DAY YESTERDAY EVENING, THEY FOUND BDO. AND BDO IS A FAIRLY MAJOR AUDITOR BUT IT IS WORTH NOTING THEY ARE NOT ONE OF THE BIG FOUR. THEY ARE THE FIFTH OR SIXTH OPENING ON WHO YOU LISTEN TO BUT WHAT MATTERS IS THEY ARE AND AUDITOR AND WILLING TO TRY TO HELP SUPER MICRO GET BACK INTO COMPLIANCE, WHICH BUYS THEM A COUPLE MORE MONTHS BEFORE ANOTHER DEADLINE. CAROLINE: FEBRUARY IS LIKELY WHEN THE DOCUMENT DEADLINE IS -- FEBRUARY IS LIKELY WHEN THE DOCUMENT DEADLINE IS GOING TO BE PUSHED TO.
OUSTED OUT OF THE NASDAQ, THEREFORE LIQUIDITY'S WILL BE FAR MORE DIFFICULT IF THEY WILL BE FORCED TO SELL THEIR HOLDINGS, RIGHT? BRODY: FEBRUARY SOUNDS LIKE FOREVER FROM NOW BUT IN THE ACCOUNTING WORLD IT IS VERY SHORT BECAUSE THEY ESSENTIALLY HAVE TO GO BACK THROUGH ALL OF THEIR FINANCIALS AND FIGURE OUT THERE WAS SOME ISSUE MAYBE AROUND PROCESSES, MAY BE A NEW STATEMENT IS NEEDED -- MAYBE A NEW STATEMENT IS NEEDED. LET'S SAY THEY WERE DELISTED. WHAT WOULD HAPPEN IS A SIGNIFICANT AMOUNT OF THEIR SHAREHOLDERS ARE PASSIVE, MEANING IT WOULD BE AUTOMATIC SELLING. IT IS POSSIBLE THEY WOULD HAVE TO REPAY SOME OF THEIR BONDS EARLY. THAT IS ABOUT $1.7 BILLION OR SO. ESSENTIALLY, SUPER MICRO WILL
DO EVERYTHING WITHIN ITS POWER TO AVOID THAT SCENARIO, AND IT'S ALL IT'S JUST GOT A WHOLE LOT BETTER AFTER YESTERDAY'S NEWS. CAROLINE: MEANWHILE, IT STILL FACES A DOJ PROBE, WE UNDERSTAND. BRODY: THANK YOU. CAROLINE: COMING UP, WE WILL BE DISCUSSING ALL THINGS CHILD SAFETY ONLINE PARTICULARLY IN THE GAMING WORLD WITH THE CHIEF SAFETY OFFICER OF ROBLOX OFF THE BACK OF ITS LATEST RULES AND REGULATIONS, SELF-IMPOSED, TO ENSURE THAT CHILD SAFETY REMAINS TOP OF MIND FOR THE COMPANY.
WE ARE KEEPING AN E ON THE MARKETSYE -- AN EYE ON THE MARKETS. SUPER MICRO UP MORE THAN A THIRD. NVIDIA UP 2.7%. A KEY CONTRIBUTOR TO THE NASDAQ AND THE BENCHMARKS TODAY. THIS IS "BLOOMBERG TECHNOLOGY." ♪
CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M CAROLINE HYDE IN NEW YORK. IT IS NOW TIME FOR TALKING TECH. BUT FIRST, A SELL OUT IN MINUTES AFTER A SUBSUMPTION WAS OPEN FOR TALABAT.
THE FINAL PRICE OF THE OFFER WILL BE ANNOUNCED WITH SHARES STARTING TRADING ON DECEMBER 10. APPLE IS OFFERING INDONESIA $100 MILLION IN INVESTMENT AS THEY HOPE TO LIFT A SALES BAN ON THE IPHONE 16. THE PROPOSAL IS AN INCREASE OF A PRIOR OFFER OF $10 MILLION MADE LAST MONTH. INDONESIA'S MINISTRY OF INDUSTRY HAS NOT MADE A FINAL DECISION ON THE REVISED OFFER. SONY IS EXPLORING A TAKEOVER OF A PUBLISHER, MAKER OF THE HIT GAME "ELDON RING -- "ELDEN RIN G." IT WOULD ALLOW THEM ACCESS TO THEIR EXPENSIVE CATALOG.
LET'S STICK WITH GAMING NOW BECAUSE ROBLOX HAS ANNOUNCED MORE PROTECTIONS TO ITS PLATFORM FOR ITS YOUNGEST USERS WITH NEW PER MENTAL CONTROLS, RESTRICTIONS ON COMMUNICATION, AND THE CONTENT THAT IS ACCESSIBLE AS WELL AS CLEARER CONTENT LABELS. THIS IS ALL AFTER THE CHILD SAFETY POLICIES HAVE COME UNDER INCREASING SCRUTINY OVER THE LAST MONTHS FOLLOWING ALLEGED CHILD ABUSE IS USING THE SERVICE -- ABUSES USING THE SERVICE. MATT KAUFMAN JOINS US TO DISCUSS THE CHANGES. GO INTO THE MEASURES IN PARTICULAR YOU THINK WILL MAKE A REAL DIFFERENCE HERE. MATT: SURE. FIRST, THANK YOU FOR HAVING ME. WE LAUNCHED THREE THINGS. FIRST'S NEW PARENTAL CONTROLS THAT MAKE IT EASIER FOR PARENTS TO MONITOR AND MANAGE THEIR KIDS'S ACCOUNTS EVEN WHEN NOT SITTING NEXT TO THEIR KIDS. WE ALSO ABATED HOW OUR YOUNGER
USERS UNDER 13 CAN COMMUNICATE ON THE PLATFORM. ALSO, WE HAVE BUILT IN ADDITIONAL ACTIONS FOR OUR YOUNGEST USERS. CAROLINE: LET'S JUST TALK ABOUT DEFINING AND WORKING OUT WHO IS 13 AND UNDER.
IT IS A REALLY DIFFICULT LIFT IF PEOPLE ARE NOT GOING TO ALWAYS BE TELLING THE TRUTH. ARE YOU USING TECHNOLOGY HERE, OR IS IT DEPENDING ON THE TRUTH OF THE USER BASE? MATT: IF YOU ARE UNDER 13 AND YOU SIGN UP FOR AN ACCOUNT ONLINE, WE ACTUALLY CAN I ASK YOU FOR ADDITIONAL INFORMATION BECAUSE OF PRIVACY REASONS. SO FROM A ROBLOX PERSPECTIVE, WE WANT TO MAKE SURE EVERYBODY IS ON THE PLATFORM SAFE NO MATTER WHAT AGE THEY SIGN UP AS. CAROLINE: SO HOW, THEREFORE, ARE YOU LOOKING IF YOU CAN ASK, IF YOU CANNOT GET THE DATA AND THE CLARITY? IS THERE A FIX? IS THERE SOMETHING YOU ARE WORKING ON? MATT: WELL, SO WHAT WE DO IS WE TAKE EXTRAORDINARY STEPS TO KEEP EVERYBODY SAFE ON THE PLATFORM. FOR EXAMPLE, WHEN YOU ARE COMMUNICATING ON ROBLOX, WE DO NOT ENCRYPT ANYTHING.
WE MONITOR ALL MEDICATION AND WE HAVE AN INVESTIGATION -- ALL COMMUNICATION, AND WE HAVE AN INVESTIGATION TEAM. AND WE HAVE A LOT OF MACHINE LEARNING AND AI SYSTEMS THAT ARE RUNNING TO KEEP EVERYBODY SAFE. REALLY, THAT IS PART OF OUR -- GO AHEAD. CAROLINE:
TALK THROUGH THAT AI, THE MACHINE LEARNING. HOW SPECIFIC IS BECOMING? BECAUSE THE SUBTLETIES OF GROOMING ARE SO HARD TO PICK UP ON. MATT: THAT IS TRUE, AND AI IS ADVANCING VERY FAST. WE MADE SIGNIFICANT LEAPS IN THE TECHNOLOGY.
FOR EXAMPLE, OUR AUTOMATED MODERATION SYSTEMS FOR VOICE COMMUNICATION. JUST EARLIER THIS YEAR, WE OPEN SOURCED SOME OF THE MODELS BEHIND THAT TECHNOLOGY. AND THEY ARE SOME OF THE MOST POPULAR MODELS IN OPEN SOURCE TODAY FOR SAFETY SO WE FEEL THAT ROBLOX IS AT THE LEADING EDGE OF DEVELOPING AI TO KEEP PEOPLE SAFE ON THE PLATFORM. CAROLINE: CAN YOU GIVE THAT BALANCE OF AI AND THEN THE TEAM THAT DOES THE DEEPER INVESTIGATION? IS IT THAT YOU CAN MORE FOCUS ON TECHNOLOGY BEING THE FIX HERE? HOW BIG IS THE TEAM GOING TO REMAIN? MATT: REALLY EVERYTHING IS ALMOST A MULTILAYERED APPROACH. YOU HAVE AI SYSTEMS THAT MAKE INITIAL SYSTEMS AND ACT VERY FAST AND IT IS SUPER SCALE BUT BEHIND THOSE AI'S, YOU HAVE A TEAM OF SAFETY PROFESSIONAL -- PROFESSIONAL SAFETY EXPERTS THAT ARE DOING ALL SORTS OF THINGS. THEY ARE OF COURSE TRAINING THE AI AND ALSO HANDLING APPEALS. BECAUSE SOMETIMES THE AI DOES
NOT GET THINGS RIGHT SO IF SOMEBODY SAYS MAHANEY, I FEEL LIKE -- SAYS, HEY, I FEEL LIKE IT MADE A MISTAKE, WE HAVE A TEAM OF PROFESSIONALS THAT STEP IN AND TRAIN THE AI AND WE HAVE THE TEAM OF PROFESSIONALS HANDLING THE MOST COMPLICATED CASES. FOR EXAMPLE, WE HAVE A TEAM OF INVESTIGATORS CONSTANTLY LOOKING AT THE PLATFORM TRYING TO UNDERSTAND IF THERE ARE BAD ACTORS AND IF THERE ARE, IMMEDIATELY REMOVING THEM FROM THE PLATFORM, AND WORKING WITH OUR LAW ENFORCEMENT PARTNERS TO KEEP THE PLATFORM SAFE. CAROLINE: YOU HAVE OUTLINED HOW YOU WILL BE PROTECTING THE USERS, THE CHILDREN. BUT THE PEOPLE WHO COME ON WHO ARE NOT WHO THEY SAY THEY ARE, THE PREDATORS, WHAT ARE YOU DOING TO INNOVATE THERE? MATT: SO LET ME STEP BACK FOR A MINUTE AND SAY ROBLOX HAS NEARLY 90 MILLION USERS FROM 190 COUNTRIES AROUND THE WORLD, AND THESE USERS ARE ENJOYING EXPERIENCES WITH THEIR FRIENDS AND FAMILIES. AND IT IS A REALLY IMPORTANT PART OF THEIR LIFE. THERE IS A VERY SMALL NUMBER OF
PEOPLE IN THE WORLD WHO ARE JUST BAD ACTORS. AND SO WE HAVE SYSTEMS THAT AUTOMATICALLY DETECT BEHAVIORAL ANOMALIES TO DETERMINE WHEN SOMETHING MIGHT BE VIOLATING OUR POLICY. AND WE TRY TO ACT AS QUICKLY AS WE CAN. THAT NOTION OF ACTING AS QUICKLY AS WE CAN ACTUALLY
APPLIES TO HOW PEOPLE UPLOAD CONTENT TO ROBLOX. FIRST OF ALL, WHEN YOU ARE BUILDING A GAME ON ROBLOX, WE REVIEW EVERY PIECE OF CONTENT THAT IS UPLOADED TO THE PLATFORM BEFORE ANYBODY SEES IT. WHEN YOU ARE COMMUNICATING USING TEXT ON THE PLATFORM, WE BLOCK OUT AND FILTER A LOT OF THAT COMMUNICATION BEFORE IT EVER TRANSMITS TWO OTHER PEOPLE IF WE FIND THAT IT IS VIOLATING OUR POLICIES. CAROLINE:
SO ARE THOSE SORTS OF CHANGES YOU JUST OUTLINED NEW? ARE THEY NOVEL? VERY SADLY AS YOU SAY, THERE ARE VERY FEW BAD ACTORS, AND SUCH AS PERSPECTIVE, BUT RAW NUMBERS OF 20 PEOPLE ARRESTED BECAUSE OF ABUSING, THAT IS 22 MANY AS I AM SURE YOU WILL -- 20 TOO MANY AS I AM SURE YOU WILL AGREE. MATT: ANYBODY THAT COMES TO HARM ON ROBLOX IS TOO MANY. WE DO ANYTHING WE CAN TO KEEP THE PLATFORM SAFE. IT IS OUR NUMBER ONE PRIORITY.
WHEN IT COMES TO THE BAD ACTORS ON ROBLOX, WE ARE CONSTANTLY INNOVATING. AND WE HAVE ACTUALLY THIS YEAR ALONE HAD 30 MAJOR UPDATES TO OUR SAFETY SYSTEMS. SO THE RELEASE WE ARE TALKING ABOUT TODAY AND THAT WE ANNOUNCED THIS WEEK IS ABOUT LIMITING THE EXPOSURE TO SOME OF OUR YOUNGEST AUDIENCES TO CONTENT THAT IS MORE APPROPRIATE TO TEENAGERS. WHEN WE ARE TALKING ABOUT THE REALLY BAD ACTORS, WE ARE CONSTANTLY INNOVATING ON THAT FRONT AND CONSTANTLY UPDATING OUR SYSTEMS. CAROLINE: YOU TALK ABOUT SAFETY BEING YOUR NUMBER ONE PRIORITY, AND THERE HAVE OF COURSE BEEN ACCUSATIONS THAT THERE WAS GROWTH THAT CAME FIRST OVER SAFETY. DO YOU STILL FEEL IN ANY WAY THAT THAT IS THE CASE? OR DO YOU ULTIMATELY HAVE TO SLOW DOWN SIGN-UPS IN SOME WAY TO ENSURE THE NUMBER ONE PRIORITY IS SAFETY? MATT: OUR NUMBER ONE PRIORITY IS SAFETY.
I THINK THAT IS JUST OUR FIRST PRINCIPLE. IF YOU THINK ABOUT IT FROM A COMPANY PERSPECTIVE, ROBLOX WAS FOUNDED NEARLY 20 YEARS AGO WHERE THE AUDIENCE WAS PRIMARILY KIDS AT THE BEGINNING. AND REALLY SINCE ITS FOUNDATION, PROTECTING THE USERS ON THE PLATFORM HAS BEEN OUR FIRST PRIORITY. IT IS GOOD FOR OUR BUSINESS. IT IS GOOD FOR GROWTH. IT IS OBVIOUSLY GOOD FOR OUR
USERS. EVERYONE IN ROBLOX UNDERSTANDS THAT. YES, SOMETIMES WITH SLOW THINGS DOWN TO ACCOUNT FOR SAFETY ISSUES.
FOR EXAMPLE, WHEN WE FIRST STARTED DEVELOPING NEW FEATURES, WE WILL SIT DOWN WITH THE FEATURE TEAMS AND TALK ABOUT RISKS ASSOCIATED WITH THE FEATURE AND MAKE SURE WE ADDRESS THOSE AT THE VERY BEGINNING RATHER THAN WAITING UNTIL THE VERY END AND TRY TO FIX SOMETHING. WE BUILT SAFETY IN AT THE BEGINNING. CAROLINE: YOU ARE NOT THE ONLY COMPANY THAT IN MANY WAYS HAS LET A GENIE OUT OF THE BOTTLE HERE BECAUSE OF THE FEW BAD ACTORS. I AM INTERESTED ULTIMATELY HOW THE FOCUS SHIFTS FROM BEING ONE WHERE COMPANIES ARE THE ONES WE TURN TO TO FIX THIS OR HOW MUCH THE ONUS IS ON THE PARENTS, ON THE CHILDREN, ON THE USERS.
WHERE DO YOU THINK THAT BALANCE LIES? MATT: I THINK COMPANIES NEED TO TAKE A PROACTIVE STANCE KEEPING THEIR USERS SAFE ON THE PLATFORM. OBVIOUSLY, WE WANT TO PROVIDE AS MANY SYSTEMS AND CONTROLS AND INSIGHTS TO PARENTS AS POSSIBLE. BUT FROM OUR PERSPECTIVE, WE NEED TO MAKE THE ASSUMPTION THAT PARENTS ARE NOT ALWAYS IN THE ROOM AND NOT ALWAYS INVOLVED. THAT IS OK. PARENTS ARE REALLY BUSY. THEY ARE SPLIT BETWEEN THEIR JOBS AND ALL DIFFERENT KINDS OF THINGS GOING ON, AND WE NEED TO PLAY A PROACTIVE ROLE. I THINK WHEN YOU ARE TALKING ABOUT THE LARGER PROBLEM THAT WE FACE, I THINK IT IS ALMOST LIKE IT IS A PROBLEM ACROSS THE INTERNET. THE OTHER THING WE THINK A LOT
ABOUT ON ROBLOX IS HOW WE KEEP PEOPLE SAFE ON ROBLOX KNOWING THAT OUR USERS ALSO HAVE ACCOUNTS ON OTHER PLATFORMS AND THEY HAVE PHONE NUMBERS AND SELL THOSE AND THINGS LIKE THAT. WE DO OUR BEST TO KEEP PEOPLE ON ROBLOX SO WE TRY TO BLOCK PEOPLE FROM SHARING PERSONAL IDENTIFIABLE INFORMATION. WE TRY TO BLOCK PEOPLE FROM DIRECTING USERS TO OTHER PLATFORMS BECAUSE WE KNOW WE CAN KEEP ROBLOX SAFE AND WE KNOW WE GO TO GREAT ENDS TO KEEP THE PLATFORM SAFE. BUT OTHER PLATFORMS DO NOT OPERATE AT THE SAME STANDARDS WE DO, SO IT IS IMPORTANT FOR US TO DO WHAT WE CAN TO MAKE SURE PEOPLE STAY SAFE ON ROBLOX WHILE THEY ARE THERE. CAROLINE: ROBLOX CHIEF SAFETY OFFICER MATT KAUFMAN, THANKS FOR YOUR TIME TODAY ON THE LATEST PROTECTIONS BEING UNVEILED.
MEANWHILE, WE SHIPPED FROM A CORPORATE STORY TO WHAT IS HAPPENING IN THE BROADER MARKETS RIGHT NOW. WE WANT TO SHINE A LIGHT ON WHAT IS HAPPENING IN CRYPTO BECAUSE IT IS CONTINUING TO SUSTAIN ITS RALLY. BITCOIN UP TO $92,000 OFF OF THE KEY HIGH REACHED EARLIER IN THE WEEK BUT STILL UP A PERCENTAGE POINT ON THE DAY. 400% HIGHER OVER THE LAST YEAR TRADING FOR MICROSTRATEGY COME UP ANOTHER 6%. SELLING CONVERTIBLE DEBT TO BUY MORE BITCOIN. THEY ADDED 64,000. WE ARE LOOKING AT BAKKT
HOLDINGS AS WELL. MAYBE TRUCK'S TRUTHS -- MAYBE TRUMP'S TRUTH SOCIALLY BE PURCHASING THAT. TECH FIRMS ARE RACING TO DEVELOP AI POWERED AGENTS TO HELP IMPROVE EFFICIENCY ACROSS THE SALES INDUSTRY. ONE OF THE LEADERS IN THE FIELD IS ROX.
THE COMPANY CEO AND COFOUNDER WILL BE JOINING US. THIS IS "BLOOMBERG TECHNOLOGY." THIS IS BLOOMBERG. THERE IS A WAVE OF STARTUPS AND MEGA COMPANIES FOCUSING IN ON DEVELOPING AI POWERED AGENTS, IN PARTICULAR FOR SALESPEOPLE, ALL IN AN EFFORT TO MORE EFFICIENTLY COMPLETE TASKS WITH MINIMAL HUMAN SUPERVISION. ROX ANNOUNCES A $50 MILLION RAISE.
HERE WITH MORE, ROX CEO AND COFOUNDER ISHAN MUKHERJEE. FIRST THINGS FIRST FOUR WE GET TO THE EXACT DETAILS OF THE NUMBERS, HOW MANY COMPANIES DO YOU ESTIMATE ARE OUT THERE BUILDING AGENTS FOR ENTERPRISE? ISHAN: THERE IS QUITE A FEW. YOU HAVE A GROWING INCUMBENT KIND OF MARKET OF VENDORS THAT ARE REPOSITIONING THEMSELVES AS AI COMPANIES, AND BECAUSE OF THE BARRIERS OF ENTRY BEING LOWERED, THERE IS ALWAYS EARLY STAGE COMPANIES ENTERING THE MARKET. CAROLINE: AND YET SEQUOIA PICKS YOU A GENERAL CAPITALIST PICKS YOU.
WHY? WHAT ARE YOU OFFERING THAT SALESFORCE IS NOT ALREADY PLOWING MONEY INTO, MICROSOFT IS NOT DOING, OR SOME OF THE OTHER STARTUPS IN THE FIELD? ISHAN: AT ROX, WE ARE BUILDING AI THAT FOCUSES ON X LIMITING REVENUE FOR THE LARGEST ENTERPRISES. CAROLINE, WHAT WE ARE SEEING IS EVERY BUSINESS OWNER ACROSS EVERY VERTICAL IS BLOWING OUT THE REVENUE TARGETS FOR NEXT YEAR. SOME OF OUR CUSTOMERS ARE DOUBLING THEIR EARNINGS TARGETS. BUT NONE OF THEM ARE DOUBLING
THE TEAM SIZE. THE INTERESTING THING ABOUT SALES, 90% OF THE REVENUE IN THE SCALE ENTERPRISE COMES IN THROUGH THE LARGEST ENTERPRISE CUSTOMERS. THE TOP 15% OF THE EMPLOYEES. TO GET THE REVENUE, THEY HAVE TO GET MORE OUT OF THE TOP 15% OF THE EMPLOYEES. CAROLINE: YOU ARE SAYING WITH YOUR
TECHNOLOGY, YOUR AI AGENTS, YOUR SORT OF SUPERPOWER RING AUGMENTING HUMANS THAT ARE CURRENTLY BEING HIRED, BUT MY QUESTION REMAINS, WHY WOULDN'T SOMEONE DO THAT THROUGH MICROSOFT? HOW CAN YOU ENSURE YOU WILL CONTINUE TO BUILD YOUR PIPELINE OF USERS WITH A $50 MILLION IN CURRENTLY RAISED BEING ABLE TO TACKLE THAT? ISHAN: TO BE ESSENTIAL TO AN ENTERPRISE GROWING AND SECURING THEIR CUSTOMERS, THE COURT ADVANTAGE OF AI IS TO BE ABLE TO -- AT ROX WE BUILT THE FIRST ENTERPRISE READY AGENT. SO ROX, WE HAVE SEEN AMAZING EARLY ADOPTION BECAUSE OF THE POWER OF THE DATA WE AGGREGATE THAT FUELS THESE AGENTS. CAROLINE: ROX CEO AND COFOUNDER ISHAN MUKHERJEE. WE APPRECIATE YOU COMING ON. MEANWHILE, HUAWEI'S AMBITIONS TO CREATE MORE POWERFUL CHIPS FOR AI AND SMARTPHONES HAS HIT SOME MAJOR SNAGS BECAUSE OF U.S.
SANCTIONS AS IT IS DESIGNING ITS NEXT TWO PROCESSORS, ITS ANSWER TO NVIDIA. THIS MEANS THAT THE FIRM'S MARQUEE CHIPS WILL BE STUCK AT AGENT TECHNOLOGY UNTIL AT LEAST 2026. MEANWHILE, LET'S TALK ABOUT INNOVATION AT NVIDIA. IT IS TEAMING UP WITH GOOGLE TO
PURSUE ANOTHER TECHNOLOGY ONCE RELEGATED TO SCIENCE FICTION, QUANTUM COMPUTING. WE WERE JUST TALKING BUT QUANTUM COMPUTING WITH A MARKET ANALYST YESTERDAY AND HERE WE HAVE A NEW DEAL FORGED. WHAT WILL THEY BE DOING TOGETHER TO PROGRESS US? >> THIS IS BASICALLY NVIDIA SAYING THIS IS ANOTHER USE OF OUR TECHNOLOGY, OUR AI CHIPS AND SYSTEMS AND SOFTWARE, AND THERE IS A REALLY IMPORTANT COMPANY CALLED GOOGLE THAT YOU HEARD OF THAT IS USING THIS TO TRY TO PUSH THE WHOLE QUANTUM COMPUTING WORLD FORWARD. EARLY STAGES, BUT BASICALLY GOOGLE IS GOING TO BE USING A NVIDIA SUPERCOMPUTER. CAROLINE: OK. NVIDIA'S SUPERCOMPUTER WILL BE
ABLE TO STRIP OUT NOISES. WHAT ADDS TO THE NOISE? WHAT IS IT IN THE INNOVATION WE SEE A RIGHT -- SEE RIGHT HERE AND RIGHT NOW THAT IMPACTS QUANTUM COMPUTING? IAN: EVERYBODY THROWS AROUND QUANTUM COMPUTING BUT IT DOES NOT EXIST. THERE ARE COMPONENTS, EARLY-STAGE COMPONENTS THAT ATTEMPT TO USE QUANTUM MECHANICS TO BASICALLY REPRESENT INFORMATION, TO REPLACE STANDARD SEMICONDUCTORS. WE ARE AT THE EARLY STAGES OF THAT AND DECIDING WHAT IS INFORMATION AND WHAT IS JUST RANDOM NOISE GENERATED BY THE ENVIRONMENT. IT IS REALLY DIFFICULT. WHAT NVIDIA IS SAYING, USE OUR TECHNOLOGY AND YOU WILL BE ABLE TO DEVELOP COMPONENTS MORE QUICKLY THAT CAN DO THAT BY SIMULATING THE ENVIRONMENT. CAROLINE: SO NVIDIA WANTS TO ENSURE WE STILL THINK OF IT GOING FORWARD PAST INTO QUANTUM COMPUTING. GOOGLE, MEANWHILE, IS IN ON THE
ACT BECAUSE OF THE SHEER FORCE OF DATA PROCESSING THAT WILL BE ACHIEVED UNDER WHAT IS CURRENTLY STILL IN THE BALANCE OF FICTION. IAN: YEAH, EXACTLY. YOU SEND WILL BE ACHIEVED, AND SOME PEOPLE SAY THAT IS AN INEVITABLE FUTURE. A COUPLE DECADES, MAYBE MORE THAN A DECADE.
OTHERS HAVE SAID NEVER. YOU TAKE YOUR PICK. BUT CERTAINLY NVIDIA IS DEFINITELY COVERING ITS BETS AND AGAIN TRYING TO PUSH FORWARD THIS IDEA THAT WE HAVE THIS INCREDIBLE SYSTEM FOR ACCELERATING WHATEVER IT IS YOU ARE WORKING ON. EVEN IF IT IS SOMETHING THAT WILL REPLACE WHAT WE DO, WE CAN GET YOU THERE. USE OUR STUFF.
CAROLINE: THE NEVER HAVE THAT BUILDS AHEAD OF THEIR EARNINGS IN A LITTLE MORE THAN 24 HOURS TIME. WE THANK YOU. COMING UP, SPACEX READIES FOR ANOTHER STARSHIP LAUNCH. PRESIDENT-ELECT TRUMP SET TO
ATTEND. THAT STORY NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: LATER TODAY MY SPACEX IS SLATED TO LAUNCH ITS GARGANTUAN STARSHIP ROCKET ONCE AGAIN OUT OF SOUTH TEXAS, AND IT IS EXPECTED TO INCLUDE A GUEST IN PRESIDENT-ELECT DONALD TRUMP. WHAT IS IT THEY ARE TESTING? IS IT GOING TO BE A REPEAT, THE CHOPSTICK INCREDIBLE VIEWPOINT THAT THE INTERNET WENT CRAZY FOR? >> LEGAL EFFECT TO DO THAT AGAIN COME AND WE WILL SEE THAT HAPPEN MANY TIMES. THE GOAL OF THESE TESTS TO MAKE IT SO THAT IT IS PERFECT, SO THEY WERE GOING TO SEE -- SO THEY ARE GOING TO SEE IF THEY CAN PERFECT IT AND LATCH STARSHIP AROUND THE WORLD AND ALSO BRING THAT BACK TO EARTH THROUGH THE ATMOSPHERE AND HOPE IT SURVIVES THE FIERY PLUNGE. CAROLINE: REMIND US HOW DANGEROUS THIS IS, HOW MUCH BIGGER OF A ROCKET IT IS. LOREN:
STARSHIP IS BY FAR THE MOST POWERFUL, THE LARGEST ROCKET HUMANS HAVE EVER DEVELOPED. IT IS THE KEY TO WHAT SPACEX WAS FORMED FOR, RIGHT? TO SEND HUMANS TO DEEP SPACE LIKE THE MOON AND MARS. IT IS A BEHEMOTH OF A VEHICLE. IT HAS DOZENS OF ENGINES AT ITS BASE. THE FACT THAT THEY CAN DO THIS ALONE IS A FEAT BUT THEY NEED TO GET TO A PLACE WHERE THEY ARE COMFORTABLE DOING THIS OVER AND OVER AGAIN. JUST LAST WEEK, THE PRESIDENT SAID SHE ANTICIPATES LAUNCHING STARSHIP UP TO 400 TIMES OVER THE NEXT FOUR YEARS. THIS IS SOMETHING THEY WANT TO MAKE ROUTINE. CAROLINE: 400 TIMES TO DO WHAT EXACTLY?
THIS IS WHERE THE REVENUE STREAM COMES IN. WE JUST SAW A PHENOMENAL VALUATION FOR THE COMPANY. PART OF THAT IS THE GOVERNMENT CONTRACTS THEY CAN WIN. LOREN:
RIGHT. ESSENTIALLY, STARSHIP REPLACE THE VEHICLES AS THEY ARE CURRENTLY USING TO LAUNCH HUMANS AND CARGO TO ORBIT. THAT WILL NOT HAPPEN FOR A WHILE BUT THEY WANT TO USE STARSHIP TO SEND THEIR NEXT GENERATION STARSHIP SATELLITES INTO ORBIT. THE GOAL IS TO USE THIS AS A LENDER FOR THE NASA ARTEMIS PROGRAM TO LAND PEOPLE ON THE MOON AND EVENTUALLY TO SEND HUMANS TO MARS SOMEDAY. IT REALLY IS GOING TO BE THE CRUX OF SPACEX'S BUSINESS PLAN MOVING FORWARD. CAROLINE:
ONE WHICH MIGHT BE HELPED WITH THE FACT THAT ELON MUSK IS CLOSE TO PRESIDENT-ELECT TRUMP, WHO MIGHT BE THERE TO VIEW ALL OF THIS. LOREN: RIGHT. CAROLINE: WHAT IS THE NEXT TECHNOLOGICAL FEAT? LOREN: SO GLAD YOU ASKED. AS IMPRESSIVE AS THE TEST FLIGHTS ARE, THERE IS STILL QUITE A LONG WAY TO GO. TO GET TO DEEP SPACE
DESTINATIONS, FOR INSTANCE, STARSHIP HAS TO REFUEL IN ORBIT. THAT IS SOMETHING THAT HAS NEVER BEEN DONE AT THIS SCALE BEFORE. SO ESSENTIALLY WHAT THEY HAVE TO DO IS LAUNCH STARSHIPS AND LAUNCH MULTIPLE BACK-TO-BACK STARSHIPS THAT WILL DOCK IN ORBIT AND REFUEL, KIND OF LIKE FILLING UP AT THE GAS TANK OVER AND OVER AGAIN. ONCE IT HAS ENOUGH FUEL, THEY CAN GO ONTO THE MOON AND MARS BUT THAT IS STILL A WHILE AWAY AND THEY NEED TO PERFECT THIS BOOSTER CATCH. THEY NEED TO MAKE SURE STARSHIP CAN COME BACK TO EARTH IN ONE PIECE.
THEY WERE ABLE TO DO THAT LAST TIME BUT WE STILL SAW SOME PIECES OF A BURNING AWAY. IT IS STILL A WORK IN PROGRESS BUT THAT IS WHAT EACH OF THESE TESTS ARE FOR. IT IS ONE STEP FORWARD INTO THAT DIRECTION, BUT IT WILL BE SOMETIME BEFORE ANYONE IS LAUNCHING ON THIS VEHICLE, LET ALONE GOING TO THE MOON OR MARS. CAROLINE: ALL EYES ARE ON 5:00 P.M. EASTERN TODAY. SO GREAT TO HAVE YOU HERE. THANK YOU. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY."
TUNE IN TOMORROW. WE HAVE A GREAT INTERVIEW ON ALL THINGS CHIPS AND AI.
2024-11-21 14:08
