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At gsk, we're pioneering advanced technologies like antibody drug conjugates that precisely target and attack cancer cells. By uniting science, technology and talent, we work tirelessly to stay ahead of cancer together. Visit gsk.com to discover more Bloomberg Audio Studios, Podcasts, Radio news Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg tech. Coming up, U.S. auto safety regulators probe Tesla over issues with door handles on certain vehicles following a Bloomberg report. Plus, Google will invest close to $7 billion over two years in the UK to help build its economy and ServiceNow expands its presence in Florida with a new regional hub. We speak with the CEO and with the developer of the site. But first we check out what's happening in the markets. We are so close to 10 straight days of gains on the NASDAQ 100. There's a blip. We pull just slightly into the negative territory on the NASDAQ 100, only slightly add. What is it, 13 points. Much anxiety as we go into the Federal Reserve policy. The decision comes tomorrow. Will we see a cut? But what about the future direction as those retail sets sales look pretty buoyant. Can they be as dovish in the longer term and you're looking at perhaps what moves the markets on this exact day? Yeah, let's get to our top story. U.S. auto safety regulators opened up an investigation into whether some Tesla vehicle doors are defective. This comes days after a Bloomberg investigation uncovered a series of incidents in which people were injured or died after they were unable to open doors. When Tesla's lost power, particularly after crashes, I would note the stock is higher in this Tuesday session, up almost 2%. Bloomberg's Global Autos editor, Craig Trudell joins us from London. Let's start with the investigation, which is a nitzer investigation. Craig, explain the parameters of what NITZ is looking at and the scope of what they're looking at. Yeah, it's interesting, you know, the sort of headline information at the top of this document that NHTSA issued today refers to a pretty narrow, narrow set of vehicles. This is the 2021 Model Y. It's about 170,000 cars. But the issue here has the potential to be much broader because what NHTSA is looking at is Tesla's approach to its, its door design and the fact that its doors are reliant on electrical power in order to work. That is something that applies to all Tesla is going back to the Model S that's been in production since 2012. So while Tesla is, is, you know, on the surface, it looks like this is a single model, a single model year, this has the potential to be something much broader. You think back to, you know, a precedent of, of an autopilot investigation where they were narrowly looking at how that system handled, you know, certain parameters like how they were navigating emergency vehicles and, you know, running into, say, fire trucks or police cars. That, that didn't just stay narrowly focused on that one issue. They had to recall autopilot, you know, overall. Right. It affected their vehicles in a much broader way. It has, there, there is some potential for the same to play out here with this Model Y investigation. Craig, China, top regulators there have been looking at these concealed handles before already. Europe has been thinking a lot about accidents in such cases. Is it just a Tesla design? And more broadly, how are we thinking about the US Tackling it versus other regions? I think it's interesting because this, this is a design that for, for all of its potential flaws, at least to some degree, has been embraced and sort of copied by other manufacturers. And that's something that we included in our report last week, that a lot of electric vehicle, you know, rivals or would be rivals to Tesla that have come onto the market over the years have kind of embraced this, you know, flush door handle design, essentially kind of innovating a door handle that maybe didn't need to be innovated. And that is something that, that will be, you know, very interesting for us to watch here because we also included in last week's report mention of the fact that we've already seen recalls related to the safety of door handles and for instance, the Mustang Mach E, the Ford SUV that that is taking on the model Y. So this has the potential to be not only a broader investigation for Tesla, but also something that NHTSA takes a closer look at across all manufacturers that have have taken after Tesla from this design perspective. After Nitzer confirmed its investigation this morning, Tesla has not responded to requests a comment from Bloomberg. But we just showed Craig, while you were speaking, the comments of Tesla's board chair, Robin Denholm, which you'll remember, Karen, I posed a question to after our original report as Bloomberg's Craig Trudeau out of London, thank you very much. Going back to the U.K. google will invest $5 billion, that 6.5 billion pounds. Sorry, that $6.8 billion over two years into the U.K. to help build an air economy in the country. The tech giant disclosed the plan just as President Trump is set to announce billions of dollars of economic deals during his visit to the UK this week. He's expected to travel with with several US tech leaders, including Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman. Bloomberg's UK correspondent Lizzie Burden joins us. And Lizzie, give us the need to know on this Alphabet deal and what else we're looking forward to. Well, as you both know, this Alphabet deal is a drop in the ocean in terms of the capex of Alphabet, but it's a big deal for the UK it's something that's been long in the making. The UK Tech secretary is the former former one. Peter Kyle is now the UK Business and trade secretary, perhaps as a sign of just how important tech is to the business landscape here in the UK but as you say, it's part of a broader suite of economic deals that we're expecting the president to announce here on his visit to Britain. We're expecting £10 billion worth of deals to be announced, including a defense tech cooperation agreement, also partnership on nuclear, all the also bringing together the economic hubs on both sides of the Atlantic. So there's a lot at stake here for Keir Starmer. It's an unprecedented second state visit for Donald Trump here In Windsor, this 11th century castle behind me. But I have to say this is the worst possible timing for Keir Starmer. He's just lost his UK Ambassador to the US Peter Mandelson, over his links to Jeffrey Epstein. Epstein, of course, linked to the king himself by his brother, Prince Andrew, and to Donald Trump. So there are going to be some very, very awkward moments, not least at the press conference at the end of the trip for the uk. The point will be to not look like we're appeasing the President, but also to make sure that something substantive comes out from this visit because ultimately the UK is playing its ace by deploying the king. Bloomberg's Lizzie Baden from Windsor Castle. We appreciate it. Let's return to the tech deals that we're expecting to come out of that visit and the focus on I with late June Chief Investment Officer for Thematic Innovation equities and Alliance Bernstein and more. This fits into the whole array of conversation we keep having about the need for investment in. We just think back to Oracle's numbers last week and how much they were showing that they've got this backlog building, we've got all the hyperscalers trying to build out. Alphabet's looking to build a data center in the uk. Are we seeing that continuing to go up and to the right at the speed that we see at the moment? Well, I think what we are seeing is actually we're hitting an inflection point in inferencing. So if you look just broadly speaking, not just those big numbers that you quoted, but also if you look the trend and the adoption and where we're seeing the step function in numbers is broadening out. So it's a broader set of companies are starting to benefit, whether it's the networking companies or we're seeing it in memory pricing, in storage, in hardware. So those are all signs that, you know, in terms of adoption, the inferencing at the edge, things are actually happening. And to me then this is a very positive sign. That means the real adoption which will drive continued build. So if we think about it, tech innovation generally, we take step functions, right? We kind of chug along and then all of a sudden there's an inflection point and things really start to take off. And I really think we are still in the early innings of that happening and supported by all the evidence that we have seen at the micro level from the company as well as these megatrends that you're seeing at, you know, the big macro level. The step function has already been shown in the valuations of companies. We just want to bring you some sound actually from a key investor. Investor who manages money for Peter Thiel. No, no less. We've been talking about how we've been looking at maybe a bubble growing in AI. Just take a listen. The air bubble is real and I don't think enough people talk about it. And if you were able to be an early investor in OpenAI then congratulations. That's a great place to be if you're coming and investing at Open air at a $500 billion valuation. I honestly don't know about that. So I think that is the more dominant topic that is going on, at least within Silicon Valley circles. That doesn't get talked about enough and how it shakes out. It's going to be fascinating because if you got in early, fantastic. If you're getting in today, I'm not sure. Long time sort of managing director for the Private wealth of Peter Thiel, but also with AZ VC founder Jack Selby there. Are you worried about any exuberance already reflected in valuations? Even though we are at this inflection point, I think that brings an interesting point. Valuation is important and we always said valuation is important, but it's only related to in terms of estimate revisions. So not all companies are going to succeed. There will be a lot of company that simply put the name in their press release and those are the ones that we say, oh, that's AI too. So as it brings back to we have to do our due diligence. Some of them will succeed, many of them will fail. Even if you look back to the web one dot oh right. There were so thousands of companies, but really a true few, few survived. And those are the leaders today. And as we look forward, I would say AI is transformative, we are early and leadership is being redefined. And that's why all the companies are rushing out to spend, because it's as defensive as it is offensive. But we will find new leaders. But in the meantime we also have to be prudent. Not all of them are going to succeed. And in fact when you redefine the future of leadership, when there's a paradigm change, some of the things that we used to think that work may not work. So what is perceived to be cheap could also be more expensive than you expected. So again, brings back to we got to do our homework. It's easy to call everything a bubble, but underneath that actually there are opportunities, but they're also, you know, prudence is absolutely important. The other counterpoint to a bubble argument is that different geographies are moving at different speeds. This week exemplifies that, does it? Not that you see earlier announcements for a build out of infrastructure in the United Kingdom, given that the we haven't seen the same level of activity in Western Europe, the United Kingdom does Alliance Bernstein change its attitude towards British equities, UK equities, European equities in that infrastructure supply chain? I think AI is a global phenomenon, but it's more so just tech innovation has become a crucial element in national success. So it is something that we watch closely and I think in terms of each country the adoption of AI, it reflects the readiness of the infrastructure, the readiness of the government, but oftentimes it ultimately comes down to a private public together initiative and there will be opportunities. We've seen sovereign being a big driver for spend and I expect to see that continue going forward. And I also think each country will take a very different approach because the budget is defeat, the willingness is different. Le very quickly how closely tracking private markets and private companies that are active here. It's very, very important for us because a big part of the adoptions is happening in the private market. And not to mention if you look at these hundreds of billions of dollars they need to be financed. A big part of the financing is being done on the private side. So we are monitoring that trend very closely both on the demand side and in terms of financing which support the supply side. Later. Alliance Fencing Great to have you back on the program. Thank you very much. Now coming up, the CEO of ServiceNow and developer related Ross joins us to discuss efforts to turn West Palm beach into an air hub. Kara, what are you looking at? I'm actually still looking at those valuations on the publicly traded side. Oracle, I mean key player when it comes to infrastructure of course up 1 1/2 percent. This is on the back of its earnings last week. But also is the narrative around tick tock continues to unfold. Will they remain a key cloud provider and infrastructure provider? Could they even take an equity stake at 1.7%? This is Bloomberg Tech Data Threats don't knock. They sneak in quietly, make themselves right at home. But when you partner with Veeam, you can spot threats before they're a threat to your business. Whatever the world throws at your data, it's all good. Get data resilient@veeam.com that's verm. Every business starts with an idea. How can you go from daydreamer to industry leader? Amazon Business accelerates your journey with smart business buying. Get everything you need to grow in one familiar place. From office supplies to IT essentials and maintenance tools. Amazon Business takes the buying experience you know and love from Amazon plus tools that help you save costs and make insights based decisions ready to bring your visions to life. Learn how@AmazonBusiness.com your next product launch is coming fast. Don't let billing slow you down. Legacy systems can't handle usage based billing that Means your team is stuck gluing code together, piecing through spreadsheets and running ad hoc queries just to figure out what to bill. With Metronome, you can roll out new pricing in minutes instead of months, whether it's usage based, seat based or a hybrid model. Visit metronome.com to see how companies like OpenAI and Anthropic launch billing as fast as they launch products. That's metronome.com ServiceNow is expanding its presence in front of Florida with a new regional innovation hub and AI Institute in West Palm Beach. The developer of the site is related Ross run by Stephen Ross. He's known for the Hudson Yards redevelopment project and of course ownership of the Miami Dolphins. Stephen Ross and ServiceNow CEO Bill McDermott join us now. Gentlemen, good morning. Thank you for joining us here on Bloomberg Tech. Bill, it's great to have you back on start with the ServiceNow piece. You know, in this environment, Bill, where there's such a micro focus on the talent in AI and where companies are spending resources, why does this position servicenow better to have this footprint in Florida? Well, there's no artificial intelligence without human intelligence, Ed. And there's no leader that can develop a project and a dream better than Steven Ross. And you mentioned the Hudson Yards, but he also did the Time Warner center. And we've been friends for a long time. And I always felt the trust was the ultimate human currency and it still is. And I believed in his dream. And what I see happening here is we're building an AI institute. And in this institute we're going to have the most innovative engineers in the world. We're going to be able to prototype solutions for the public and private sector at record pace. And then we're going to move those solutions out into the market. We're also creating Knowledge University and we're going to put the flag right here in West Palm beach to rise up 3 million people in our economy to the AI world so they can get the better paying jobs, the creative jobs where only humans can really excel. And I underscore, we really believe it's all about putting AI to work for people, people because we're a job creator and we believe that AI has to be in service to people. And right here in West Palm beach we're role modeling that. Mr. Ross, you have a vision that West Palm beach becomes an AI hub more than just service. Now, how difficult is it to convince the technology industry of your vision and why West Palm Beach? Well, I mean West Palm beach is really, it's because of Florida being the great business state it is, and knowing that South Florida is different than the rest of Florida and it's really poised to grow and attract jobs. It's never done that before. There's always been second homes, you know, the second home to all South America, if you will. But right now, the resources of Florida, there's not a better business state. And when you look and see where people are going in the change that's occurring in this country, there's no place better positioned. So we had to really put it together to bring those things that Florida didn't have to attract business. And that's what we've been concentrating on. And fortunately now, I mean, Bill and his vision, which is second to none, really saw, at least in our opinion, I'll tell you that most people's opinion, but saw the possibilities and how South Florida was really different than any other place in the country. There's not a better business state in Florida to start with. Right. So we're very fortunate, Bill. 850 jobs over the next five years, talking about $1.8 billion of economic impact. You're big on training and training people with service now, but will some of your employees move over? How much are they wanting to come to the Gold Coast? I would say we'll have a 20% of our workforce, likely relocate. The demand to do that has been unbelievable. And I keep reminding people the office gets completed in 2027, so just relax. But the demand is there. I think it'll be 80% net new jobs. You look at Florida, amazing universities across Florida. Florida. Look at our veterans. We're going to cross train our veterans on our open AI opportunity, and they're going to get excited and this is going to be a great place for them to grow and prosper. People that want to switch jobs and go into this industry because it's flourishing, you know, the jobs are going to get created in tech companies like ServiceNow. And we keep hiring, we're growing, we're hiring, we're prospering because the innovation is second to none. And you know something? You know this very well, Caroline and Ed. This platform connects to every cloud. It connects to every learning and every AI model, and it connects to every data source. So this will be the platform for business transformation. And the opportunity has never been greater than it is right now. And I'm excited to do this with my great friend Steve and really, really grow the company, especially in West Palm beach for the great state of Florida. And I want to say Governor DeSantis, Mayor James Stephen Ross. All of us work very hard behind the scenes to make this moment a reality. And Stephen, that reality is mixed use, residential, retail, office properties. In this particular focus, what about data centers? Are you thinking about the future of Florida there? I know very much West Palm beach is a place to live and to thrive. But where will your opportunities go next when it comes to technology? Well, first of all, we're just starting and really had to really develop the base for them to see the opportunities here. So we really concentrated on bringing great universities like Vanderbilt that are coming here with their business engineering tech schools. And then we had to bring in a hospital, we have Cleveland Clinic. And so we're bringing all those things that are necessary or K through 12 education to attract companies. And that's what we've been concentrating on. And working with the city of the county and the state that would really make this a place where companies really want to relocate because they can attract the best talent. Mr. Ross, thank you for that, Bill. I think a very reasonable question that your employees are going to have is whether you yourself are going to make the move to Florida and other members of leadership will make the move. If you believe so much in this vision of the future for West Palm Beach. Well, you have to remember we have a very large commitment to the state of California where we started the company in both San Diego and Santa Clara, California, which is where I'm based. But we will have executive leaders on the top management team that will be domicile here in West Palm beach and will be part of this amazing revolution. And I will spend a lot of time, the time, the discretionary time that I can here because I really want people to know we planted a flag today. This is a flag of opportunity, a flag of growth. And leadership starts at the top. And I've always believed that the true measure of a leader is not what you take from this world, it's what you give it. And today's service now gave it a lot. We came in here and Kelly, who runs Palm Beach County Business Development, said on stage, this is the biggest corporate move into this area in Palm beach county in the last 30 years. I'm super proud of that. And I want to make this a stunning success. So I'll be where I need to be, the leadership team will be where they need to be. But the main thing is to build a masterpiece of flywheel of growth and innovation. I've already received several texts today on this announcement. Engagement from other tech companies and systems integrators that are like wow. What are you doing there? What's going on in West Palm, Bill? We'll see who comes on to say they're Moving next. Bill McDermott, CEO of ServiceNow Stephen Ross, CEO of Related. Ross, great to have you both. It's time now for talking tech. First up, Amazon satellite Internet venture project Kuiper is best to offer service in five countries, including the US by early 2020. Six names to compete with Musk's Starlink has already reached an agreement to provide onboard wi fi for JetBlue. Plus, Google only considered selling off parts of its ad tech business to resolve monopoly charges, according to a lawyer for the company. Now the Justice Department, however, is seeking a full divestiture of Google, Google's advertising exchange. The two sides meet in a hearing next week. Welcome back to Bloomberg tech. I'm taking a look at the chip sector, the Philadelphia Semiconductor Index, or sox. We're mildly softer, down a few tenths of a percent. But earlier in the session we opened higher. And if we close in the green, that would put us on track for the ninth straight day of gains on the stocks, which is the longest streak since 2017. Stories there. I put Mike Hobby running. Nvidia Video is down almost a percent in the moment, but year to date, big drivers of gains. Micron reports earnings September 23rd. Nvidia under pressure right now, but recent momentum and the idea carriers, you know, is that maybe in videos at the center of the discussions between the United States and China right now. Will it come up on that phone call between the president and Xi Jinping on Friday? That's the question the markets aren't asking and is meanwhile, the market's also looking at what President Trump is doing in terms of filing a $15 billion defamation lawsuit against the New York Times. That's greater than the newspaper's market cap. As you can currently see, the president is accusing the Times of serving as a, quote, mouthpiece for the Democrats. The New York Times said in a statement that the lawsuit, quote, has no merit and is an attempt to stifle and discourage independent reporting. Let's bring in lead focus for Bloomberg's media and entertainment coverage, Chris Palmeri. Chris, when you're editing stories like this, when you're thinking about driving forward with the news, we have the context that is this isn't the first time President Trump has sued a reporting network. Right. I mean, in terms of our work, I mean, we always, you know, try to be tough but fair to everybody. And so this has been a tactic Trump's used for years. And until he became president, really the second time. He's not been successful in suing the media, but more recently he has been getting settlements out of ABC and cbs, Facebook. And so he's, he's tying this in a way to his, his power as president to say, get the FCC to approve Paramount's merger with Skydance, which happened just a week or so after they settled the CBS suit with him. So, you know, he, he's using this, it scores with his base. If you see what his true social posts have said, it's really about, hey, they're attacking me, your president. And it's a revenue generator for his presidential library foundation. And lastly, he hopes whether that's successful, not, not clear at all, is stifling as, as the New York Times said, trying to get reporters not to write nasty stories about him. Chris, what is it specifically that the President is claiming in this suit? We say it's a $15 billion lawsuit, but what is it that he is accusing the New York Times Times of? You know, it's interesting compared to the ABC and CBS suits, which were really specific incidences, this is much broader. It's sort of just a whole agenda. He argues against him and, and, and, and for Kamala Harris in the last election, you know, much, you know, harder when there's no specific allegation of journalistic wrongdoing here. The New York Times said in a statement the lawsuit has no merit and is an attempt to stifle and discourage independent reporting. Bloomberg's entertainment editor, Chris Palmeri, thank you very much. President Trump says he'll speak with Chinese leader Xi Jinping on Friday as US And Chinese officials reached a framework deal on keeping the Tick Tock app running in the United States. Listen to this. We have a deal on TikTok. I've reached a deal with China. I'm going to speak to President Xi on Friday to confirm everything up. We made a very good trade deal and I hope good for both countries, but a very different deal than they've made in the past. What companies are going to be announcing that? We have a group of very big companies that want to buy it. That's the president speaking ahead of traveling to the United Kingdom, in summary, saying a lot of big technology companies want to buy us Tik Tok and that there is a deal. We'll learn more later in the week. Sarah Krebs, director of the Tech Policy Institute at Cornell University, joins us now. And Sarah, you know, news flow is is one thing, but it looks like we're proceeding to a situation where A coalition of American technology companies and others will be able to keep Tick Tock going in the United States. But there's a big phone call on Friday. And in your analysis and expertise of the relationship between the United States and China in the tech domain, how central is the success of that phone call to this happening? I don't think that the phone call itself is going to be what this deal hinges on. My sense is that they've already established a framework through which they, this, the U.S. part of TikTok will divest from the Chinese parent company ByteDance. And I think Friday's call is really just to seal that deal and make an announcement. We cover this. I'm based in the United States, Right. And work for an American news organization. But we always come at this from the US Point of the negotiating table. How do you evaluate how China feels about TikTok being able to get to continue in the U.S. but some concessions being made that would impact China and ByteDance, right. I think this is. Well, I think first and foremost they would be. The Chinese have made it pretty clear they do not want to sell the algorithm, that they want to separate the platform from the algorithm, because it's the algorithm that is really the secret sauce here for the whole, the whole thing. And so trying to tease those two things out, the algorithm from TikTok USA I think is really important to them. But then there is a lot of issue linkage going on here. Here there are so many aspects. So Tick Tock, I think is part of a broader set of discussions on trade between the US And China. And so I think this is really an important part of that, but emblematic of, I think, what it seems Trump is trying to do, which is harmonize a little bit that relationship between the US And China in terms of data, how safe or at least from a national security policy perspective, how able is US Data to be now protected in some way from flow over to China, as Congress hopes? Right. That was the important thing for Congress, which is. Well, there were two aspects from. For Congress, which was. One was the algorithm, which was the ability to manipulate through the algorithm. But there was always the question of data. And even without the algorithm, the data is still very powerful. As you probably remember, Cambridge Analytica never touched Facebook's algorithm, but with the raw data that they had, they built profiles of individual users, tested messages and then micro targeted them. And the TikTok data is even more revealing than that. So it just not just posts and likes, but watch times, rewatches, pauses, shares. All those signals are an exposure of attention span, emotional triggers, hidden interests. So whatever foreign entity identity would perhaps still have a backdoor to that data. And so far I haven't seen anything on the technical side about how the U.S. what part of the deal would address that possible backdoor access to power the powerful data? Sarah it's so interesting because all of this comes in the broader view of US China relations and you sit at that intersection. Technology, geopolitics, national security. Is tick tock the thing that we should be that worried about when we're also looking about AI relationships? Well, it's an interesting question because, you know, and I've puzzled over why Congress, which passed this law and it was signed into law, has not really pushed back on these constant extensions. Because if this was such a national security threat, you would think it was a threat a year ago and the 90 day extensions are just kind of perpetuating that threat. And I think part of the implicit realization is that we've, you know, even if you address tick tock is really the tip of the iceberg and all these other national security tech issues, including the AI question, which I think is just in some ways looms even larger. Sarah Kreps of Cornell University come back to talk about the AI looming still. Coming up, Jack Ma returns to Alibaba with conventions. We're going to discuss that next. This is Bloomberg Tech. How can you grow your business from idea to industry leader? Bring your vision to life with smart business buying tools and technology from Amazon Business. From fast free shipping to in depth buying insights and automated purchase approvals, they deliver everything you need to achieve your goals. It's not easy to stand out from the crowd. 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Find flexible Coverage that adapts to the needs of your small business with a fast, easy online', @hiscox.com that's his cox.com there's no business like small business. Hiscox Small business Insurance. Jack Ma is back after vanishing from public eye and at the outset of an antitrust investigation in late 2020. Sources say China's most recognizable entrepreneur is back on Alibaba's campuses and he's more directly involved than he's been in half a decade. Bloomberg's global tech editor, Peter Elstrom joins us now. How is his hand being felt? Yeah, so Jack is back on the Alibaba campuses. We've spoken with people who have seen him on the campus. He's wearing his badge around. He's more active, actively involved in the operations of the company that he has been really since 2019 when he stepped down as chairman. In particular, he's been quite involved in AI, their AI initiatives, which are going quite well at Alibaba. And he's been very involved in this e commerce fight that the company has been having with JD.com and Meituan, the biggest delivery company there. Jack is used to the days when Alibaba commanded the tech landscape within China, when they had something like 85% of the E commerce market. And now the competition is much more severe. So in this latest clash where these, these companies are really fighting with each other over fast deliveries, deliveries within an hour, he's been encouraging them to spend lots of money, 50 billion yuan or about $7 billion on these fast delivery competition. So he's there, he's involved in strategy, he's taking part in these discussions and he's quite active and he's an inspiration, inspiration for employees on campus. That was part of the reporting that I found most interesting sources basically telling us that Jack is back. But other officials at the company are trying to explain to him that it's not the Alibaba that he knew from a market competitiveness standpoint. Do we know anything about how Jack Ma has reacted to that? You know, the new realities that he finds himself in. Right. He certainly, certainly is used to the days when Alibaba was the biggest, most valuable tech company within China. And now the landscape has changed quite a bit. Even in E commerce, they face very, very serious competition. And food delivery, May Tuan is much bigger than they are now. Tencent is much more valuable than they are. Alibaba's stock has come back quite a bit this year. It's up about 80%, but it's still far, far Below its peak back in 2020, it's down more than 50% from that level and for good reason. The company ran into a bunch of regulatory problems. Jack Ma spoke out against the regulators at the time. That was part of the reason that the company ran into trouble. They were planning on taking their finance affiliate, Ant Group public at that point, and they had to pull that ipo. It still isn't public even at this point. But now he's sort of come back. He's revived his reputation. He met with Xi Jinping earlier this year, so now he's given more freedom and he's participating in campus. And he's more than just another executive at the company. He really is an inspiration for a lot of the employees. Many of these employees never work with him. They've been there short enough, a short enough period of time that they haven't really seen what he's been able to do and they're looking forward to him coming back. But as you say, the business is very different. AI is much more important. E commerce is very much a different game. They're participating in cloud computing. So there's a lot that he has to learn. To Bloomberg's Peter Ahlstrom on a really important piece of Bloomberg reporting about Alibaba. Thank you. Now AI is coming for the owl. Duolingo is facing risks from multiple angles as investors reassess the impact of AI on the language learning platform. One of them, AI powered live translation services. Bloomberg's tech equity reporter Brian Vaselica has the reporting. Takes me back to Apple iPhone day and the market move when Airports Pro had simultaneous translation. You've looked at the stock. What's going on? Hey, thanks for having me. So we've seen a number of AI companies and services come out with live translation features, which is seen as a kind of competition for Duolingo. Are people going to be paying to keep learning languages when you can have AI automatically translate everything for you right away? That's a big concern. Now the company has its own, its own AI first strategy. But this is a example where we have seen a real consumer backlash against this. Now, the company says it's not impacting their financials yet, but we've seen some analysts come out and talk about how this sort of consumer aversion to AI could ultimately lead to weaker user growth or other kinds of financial churn. So this is a company that is getting it kind of on both sides, both a backlash and competition from AI. In our household, it's all about chess. Bloomberg's Ryan Bestelica. Thank you very much indeed. YouTube's made on YouTube event is underway in New York with the company unveiling new tools, of course, including plenty of AI powered ones to help video creators. We've got one of them, one of the most successful ones, Mark Rober, former NASA engineer turned hugely popular, even YouTuber. And you are one of the key creators at the event. You were in Apple product design as well, but you flipped your attention back in 2011 to basic virality on YouTube and education around science in particular. How much are you adopting the AI tools? How much your team adopting it and making your life a little easier? We've definitely got our pulse on it. We're using it a lot for like ideation and like thumbnails, I'd say, is like the main, like ideating what thumbnails are. But it's like, it will be really interesting to see how consumers feel about this, right, because some people do feel like it's taking, you know, the creator out of the loop. But I think YouTube has been very clear today. They want a creator in the loop is what matter. They don't want a slop either. So it kind of remains to be seen how the consumer feels about it. Interesting, because for you it's maybe about ab testing titles basically. Maybe there's dubbing that really helps the reach when you go more global. Mark. But when you think of VO3 and the use, just not even of you as a person, what do you want to put in place by YouTube to ensure that slop isn't created? I think I just trust that they're going to do this responsibly. But even for me, like, there's an opportunity here, right? Like, I want to get people stoked about science and education and there's only, you know, 24 hours in a day. So even for me, there's, you know, there's an opportunity for me to scale myself and to, you know, teach more topics deeper. So, you know, we're keeping a pulse on it. I think YouTube will do a very good job of making sure it's, it's high quality and it's additive and your feed isn't just filled with slop. That's terrible business for them. They don't want that to happen. People would stop using the platform. Mark, I spent a bit of time watching the Team Water video that you did the collab with Mr. Beast, right. And, you know, hearing from some of the execs at today's event, there's lots of awesome stuff with VO3, but you described how you'd use it. The team water projects like real video. Does it result the tool and just less real material circulating on the platform? I think it depends on the type of content. Right. For like just telling stories and like fiction. You know, I think you're going to see a lot more adoption and people being okay with that. You know, at the end of the day, if, you know, Mr. Beast and I, we go to Kenya to visit a village, if that's. I, like, I got to imagine people aren't going to love that. Right. So there's definitely going to be a spot for like real content that is actual connecting with real humans. Right. And there's a spot where I think it's going to really help with storytelling. So I think, I think we'll see. See how that kind of settled out, settles out over time. Mark, what are the main challenges that you face on YouTube that were not addressed by. By these great generative AI tools that were put out today? I mean, for the challenges that I face, I feel like it's actually, they've given me more tools than I would even use out of the gate. Right. So I think they're doing a good job of getting out in front of it and giving creators the dream tools. And that's what YouTube does. Right. That's kind of their advantage over like a Netflix. They don't have to pick the winners. They make the tools, they create the platform, and lo and behold, over time, the winners emerge and then that's who YouTube pays. Right. Through ads and stuff. So I think they're just following the same playbook that they've done so far that's made them so successful. Create the tools, create the platform. End of the day, it's all about the creators and it's about authentic creators. And that's what helped, for example, Crunch Labs with the success of getting real products into real people's hands. Because people trust you and therefore you can help sell products. You can do the stem toys. You can think not only about viral videos, but about curriculum, about content, about. About media projects that you're thinking, Mark, will in the end authenticity be the thing that lends you even more success versus the sudden wall of creation that we're going to see that isn't real. Yeah. I mean, especially on YouTube, historically, authentically is the currency. And that's kind of like what's helped me, my background at NASA and Apple. I'm an actual mechanical engineer. And you know, when, if a TV show like Discovery Channel puts a TV show on YouTube, it doesn't do very well because people want that authentic connection. So I think there's probably going to be ways though, to even using AI, create that connection with your audience that feels authentic and it'll remain, you know, we're going to see how that kind of pans out. But the tool is just so powerful. You do so much with it. You know, clearly there's going to be some fairly seismic shift. The key is kind of observing it and kind of staying out in front, using it as a tool to further authentically, you know, connect with your audience. Mark, your story is so fascinating. The fact that, yeah, you've done all this philanthropic work of late and we saw that with Mr. Beast, but the fact that you were a NASA engineer, the fact that you were working at Apple, I mean, we're all talking about generative AI and Apple being behind the curve. What products do you want from them? Yeah, I would want an iPhone that, you know, actually Siri, that can actually answer a question or dictate well, you know, that Google, it's really funny actually. You know, it used to be the Apple events are exciting. Google's were kind of boring with like hardware and phones and now it's sort of switched. It's like, oh, what's Google doing? Because, because you know, they are, you know, ahead of the curve at least with AI and Gemini versus Apple, who has some catching up to do. So regardless, it's a very exciting time to be alive. Right. You know, I think the way we can definitely agree is that things will be changing a lot in the next three, five, ten years and we just get to, you know, sit by and a watch. But there's others of us, you know, myself even, you know, you guys including included, who get to be part of like shaping what it will be and how it will turn out market. It looks like TikTok in the United States will be able to continue. We'll find out more this week. You know, in your career as a content creator, focus on YouTube. How do you view that? You know, your industry faces choice, right? And the platforms that they can go to. I think it's great. I think competition is great. Honestly, I will say most creators, if you actually ask them, want to move to YouTube. Like if you're big on TikTok, if you're big on Instagram, like they want to shift to YouTube because they watch out for creators the most, they pay the most. I'm not getting paid to say that. I'm just one of them and I see this. Right. So. And generally, you know, when TikTok had their short form. Now YouTube has YouTube shorts. So generally if there's a type of content that really becomes sticky, right? You know, YouTube adapts and you know this AI is a great example of this, right? I think they're staying ahead of the curve and skating to where the puck is and saying like, hey, we need to make these tools available so that we don't become obsolete. Which honestly, you know, YouTube is where I have 71 million subscribers. So I'm really glad that they are having that kind of attitude so that it doesn't become a tool and a platform that people don't want to use. Right? Mark Robert, YouTube creator, founder of Crunch Labs really great have you here on Bloomberg Tech. Thank you very much. That does it for this edition of Bloomberg Tech Car. Do not forget to check out some of our other areas on digital the podcast, for example. 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