Altman Returns to OpenAI and Nvidia Earnings Beat Estimates | Bloomberg Technology

>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER ALLIED IN SILICON VALLEY AND BEYOND THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ED: I AM ED LUDLOW IN SAN FRANCISCO. CAROLINE HYDE IS OFF TODAY. WHAT A SHOW WE HAVE. COMING UP, RETURNING TO OPENAI. WE BREAK DOWN THE CHANGES THAT THE ARTIFICIAL INTELLIGENCE COMPANY AS ALTMAN TAKE THE HELM AFTER -- AFTER AN OUSTER. THE WORLD'S MOST VALUABLE CHIPMAKER NVIDIA TOP EARNINGS ESTIMATES FAILING TO MEET LOFTY EXPECTATIONS FROM INVE

STORS BREAKING DOWN THE RESULTS. AND A DEEP DIVE INTO THE WORLD OF CRYPTO. CZ PLEADS GUILTY TO CRIMINAL CHARGES FOR ANTI-MONEY LAUNDERING. A QUICK CHECK ON THE PUBLIC MARKET PERSPECTIVE. NVIDIA SMASHES THAT IN THE FISCAL THIRD QUARTER GIVING A STRONG OUTLOOK IN THE FISCAL FOURTH-QUARTER. AHEAD OF THE STREET CONSENSUS, THE STORY, THE IMPACT OF U.S. TECHNOLOGY CURVES -- CURBS TAKING HOLD WILL IMPACT THEM IN THE FISCAL FOURTH-QUARTER. WE WILL GO DEEP AND BRING YOU THE ANALYSIS ON THE STOCK AND WHAT

THE WORLD OF AI ACCELERATORS LOOKS LIKE GOING INTO NEXT YEAR. THE OTHER PUBLICLY TRADED PART SAM ALTMAN IS BACK AT OPENAI, LARGELY SEEN AS A BIG PLUS FOR MICROSOFT WITH THE STOCK UP 1.5%, THE THIRD TIME THIS WEEK MICROSOFT HAS HIT A FRESH RECORD HIGH. THERE IS SOME EVIDENCE MICROSOFT GETS WHAT IT WANTS. WE WILL DISCUSS THAT THROUGHOUT THE PROGRAM WITH AN EXCELLENT EXTERNAL VOICE COMING UP. FIRST, SAM ALTMAN'S RETURN TO OPENAI AS CEO. I WANT TO BRING IN. THE BASICS. SAM ALTMAN IS BACK AS CEO. TH

ERE ARE SOME TEMPORARY BOARD CHANGES. WE DON'T KNOW, LET'S BE HONEST. WHAT ARE THOSE? >> THERE ARE NEW BOARD MEMBERS. THE DETAILS ARE UNCLEAR BUT THEY MIGHT BE APPOINTING A NEW BOARD LONG-TERM. FOR NOW IT WILL BE LARRY SUMMERS, ADAM D'ANGELO STILL ON THE BOARD. HE WAS ALREADY A BOARD MEMBER. THEN WE HAVE BRETT TAYLOR. HE WAS, REMEMBER, ON THE BOARD OF TWITTER. ED: HE WAS CHAIRMAN WHEN TWITTER NOW KNOWN AS X WAS SOLD TO ELON MUSK. >> HE HAS EXPERIENCES WITH COMPANIES IN CRISIS. THAT'S THE NEW BOA

RD. WE ARE SEEING REPORTED THAT TOSHA AND HELEN ARE OUT. ED: I AM HEARING THAT AS WELL. TARSIER AND HELEN WERE ON THE BOARD THAT FIRED SAM ALTMAN FRIDAY. THEY ARE NOT ON THE BOARD. SHIRIN: TOSHA AND HELEN WERE KEY BOARD MEMBERS THAT OUSTED SAM ALTMAN, BEHIND THE COUP. IT MAKES SENSE THAT WITH HIM RETURNING PART OF THE NEGOTIATION WOULD INVOLVE HAVING PEOPLE RETURN THAT WANTED HIM OUT. ED: FULL DISCLOSURE LARRY SUMMERS IS A PAID CONTRIBUTOR ON BLOOMBERG TELEVISION. THAT IS THAT. PEOPLE AROUND THE

WORLD ASK, WHY THE DRAMA? WHY DO ANY OF US CARE ABOUT OPENAI OR WHO LEADS IT? THE ANSWER TO ME SEEMS TO BE THAT OPENAI IS THE FACE OF AI. SHIRIN: ABSOLUTELY. THIS IS AN INDUSTRY LEADER. REMEMBER AI HAS BEEN SOMETHING SILICON VALLEY HAS TALKED ABOUT FOR DECADES BUT IT DID NOT REALLY EXPLODE ON THE MARKET UNTIL CHAT GPT ABOUT A YEAR AGO. THAT WAS THE BREAKTHROUGH MOMENT. THEY'RE THE ONES SITTING AT HOME FOR THE INDUSTRY. THEY ARE THE ONES MAKING AI RELEVANT ON A CONSUMER LEVEL. THEY CAME OUT WITH

PRODUCTS HUNDREDS OF MILLIONS OF PEOPLE ARE USING. HOW OPENAI GOES THE REST OF THE INDUSTRY WILL GO AND THAT IS WHY PEOPLE SHOULD CARE ABOUT THE STORY. ED: THIS ALL STARTED FRIDAY AROUND LUNCHTIME AND WE ARE NOW WEDNESDAY, THE DAY BEFORE THANKSGIVING. AND, WE ACTUALLY DO NOT HAVE A DEFINITIVE END TO THIS STORY. THERE IS A PART OF THE RESOLUTION WHERE THERE WILL BE AN INDEPENDENT INVESTIGATION INTO SAM ALTMAN WHY HE WAS FIRED. EXPLAIN THE REST OF WHAT WAS ANNOUNCED LATE LAST NIGHT BY OPENAI. SHI

RIN: WE WILL SEE A NEGOTIATION BETWEEN TWO SIDES. THE OLD WORD MAHOOD WITH VERY SKEPTICAL OF SAM ALTMAN AND PUSHED HIM OUT. AND THEN YOU HAVE SAM HAVING THIS PRODUCT WILL RETURN. ON THE OTHER WE SEE A CONCESSION IN THERE WILL BE AN INVESTIGATION INTO SAM'S CONDUCT. SO FAR THE ONLY ALLEGATIONS WE HAVE SEEN AGAINST HIM BY THE BOARD OR PEOPLE CLOSE TO THE BOARD ARE PRETTY VAGUE. JUST STATEMENTS AROUND THAT HE ESSENTIALLY WAS NOT CANDID WITH THE BOARD. WE DO NOT KNOW ABOUT EXACTLY WHAT WAS HE NOT CA

NDID ALLEGEDLY. ED: BEYOND MAY BECOME A PHILOSOPHICAL POINT OF DIFFERENCE ON THE EXISTENTIAL THREAT OF AI. I REPORTED AND YOU REPORTED THAT ONE REASON IMAGE SHE YEAR WAS ADDED AS THE CEO ON AN INTERIM BASIS WAS HE SHARED THAT EXISTENTIAL THREAT. SHIRIN: THAT IS A KEY DETAIL WE SHOULD MENTION. THE INTERIM CEO EMMETT SCHEER IS STEPPING DOWN. WE ARE SEEING PEOPLE REACT IN TECH SAYING HE IS ACTUALLY NOT AS MAY BE BAD AS PEOPLE THOUGHT THAT WERE PRO-SAM, BECAUSE NOW HE IS GIVING UP AND LETTING SAM CO

ME. ED: BLOOMBERG'S SHIRIN GHAFFARY YOU HAVE DONE INCREDIBLE REPORTING. THERE IS ANOTHER PARTY TO THE DRAMA, MICROSOFT. WE NEED TO UNDERSTAND WHAT THAT MEANS FOR THEM. MICHAEL PROCTOR OF WEDBUSH JOINS US NOW. WHAT DOES THIS MEAN FOR MICROSOFT? MICHAEL: IT'S HUGE. I THINK THAT IF YOU THINK ABOUT WHY WE HAVE NOT HAD DEEP AI SOLUTIONS FOR THE LAST 20 YEARS IT'S THAT COMPUTING POWER HAD NOT CAUGHT UP. AND OPENAI HAS INTEGRATED INTO MICROSOFT CLOUD. MICROSOFT MADE A HUGE INVESTMENT IN THEM TO MAKE SU

RE THAT HAPPENS. MICROSOFT CLOUD IS BUILDING AND'S -- IS BUILDING ITS SCALE SCALING ALL OF ITS PRODUCT, ALL OF US USER -- IT'S USER INTERFACE, ALL OF ITS DEVELOPER PRODUCT INTERFACES TO MAKE SURE THEY WORK WITH OPENAI. YOU NEED MASSIVE COMPUTING POWER. IF YOU WERE TO DECIDE TO WRITE A CHARLES DICKENS NOVEL IN THE VOICE OF STEPHEN KING, YOU NEED A PRODUCT THAT WILL READ EVERY CHARLES DICKENS EVER. THAT REQUIRES MASSIVE CLOUD CAPABILITY. MICROSOFT IS LEVERAGING SOMETHING IT HAS ALREADY BUILT AND I

NTEGRATING IT INTO WHAT THEY CONSIDER TO BE THE UP AND COMING APPLICATION. DEVELOPERS WILL BE FORCED TO USE MICROSOFT CLOUD. IF THEY WANT TO USE OPENAI. ED: MICHAEL PCHATER, THIS IS NOT A CHARLES DICKENS NOVEL, IT'S REAL LIFE THAT I HAVE LIVED THE LAST FIVE YEARS. I WANT TO GO TO THE POINT ABOUT SURPRISES BEING BAD. WE HAVE REPORTED AT BLOOMBERG THE PRIORITY FOR MICROSOFT WAS TO ADDRESS GOVERNANCE CHANGES, GOVERNANCE STRUCTURE. CAN MICROSOFT TO SAY WITH ANY CERTAINTY, AND I KNOW YOU ARE ANALYZIN

G THE STOCK IN MICROSOFT LEADERSHIP, BUT CAN THEY SAY WITH ANY CERTAINTY THIS IS THE END OF THE STORY, THE OUTCOME THEY WANTED? MICHAEL: THEY NEED A LOT OF -- MADE A LOT OF FRIENDS, I THINK, BY HIRING SAM ALTMAN. YOU SAW THE LETTER DEMANDING THE BOARD RESIGNED WAS SIGNED BY 715 OF THE 750 EMPLOYEES. THEY THEN APPARENTLY OFFERED ALL THE EMPLOYEES A JOB AT MICROSOFT. WOULD THEY RATHER HAVE REBUILT EVERYTHING STARTING FROM SCRATCH WITH ALL OF THE SAME EMPLOYEES, OR, LEVERAGE WHAT THOSE EMPLOYEES HA

VE ALREADY BUILT? ULTIMATELY, I THINK, IT IS EASIER TO JUST CONTINUE THE PARTNERSHIP DOWN THE TRUCK -- THAN TO TRY TO REBUILD. THEY WIN EITHER WAY BUT WHEN MORE KEEPING THINGS AS IS BECAUSE IT REQUIRES LESS INVESTMENT. HE WAS AN HONEST BROKER IN THE WHOLE PROCESS AND REAFFIRMED HIS COMMITMENT TO ALTMAN AND THE PRODUCT AND THE PRODUCT TEAM. I THINK EVERYTHING THEY DID WAS FLAWLESSLY EXECUTED. ED: MICHAEL, HOW CLOSELY IS MICROSOFT'S EVALUATION TIED TO THE INVESTMENT IT MADE IN MICROSOFT? AS THESIS

OUTLINED ON THE SHOW YESTERDAY THAT THE $10 MILLION INVESTMENT THEY PUT INTO OPENAI AT THE BEGINNING OF THE YEAR HAS TRANSLATED TO THE $1 TRILLION VALUATION. YOU AGREE? MICHAEL: LOOK, IT'S HARD TO VALUE SOFT -- MICROSOFT BASED SOLELY ON A SINGLE INVESTMENT. THE COMPANY IS WORTH THE SUM OF ITS FUTURE CASH FLOWS. IF THE MARKET IS MAKING A BET THAT MICROSOFT CAN LEVERAGE 10 BILLION DOLLARS OR $13 BILLION INTO $1 TRILLION OF ULTIMATE PROJECT -- PRODUCT TO THE MARKET IS RIGHT. THAT IS WHAT IT COMES

DOWN TO, THAT THE MARKET THINKS THIS WILL TURN INTO 100 BILLION DOLLARS OF FREE CASH FLOW ONE YEAR IN PERPETUITY AT SOME .20 OR 30 YEARS FROM NOW. I AM NOT SMART ENOUGH TO TELL YOU WHAT THE MARKET IS THINKING. BUT I CAN TELL YOU IT'S WORTH A LOT TO THEM. ED: CURRENT MARKET CAP IS $2.8 TRILLION. MICHAEL PACHTER OF WEDBUSH, GREAT TO HAVE YOU. COMING UP, BLOOMBERG -- NVIDIA BEATS EXPECTATION ED ANNOUNCES NEW CHIPS DESIGNED TO MEET THE CURRENT CHINA RESTRICTIONS FROM THE U.S. WE BREAK IT DOWN WITH W

OLFE RESEARCHER CHRIS CAS HPO UP THREE PERCENTAGE POINTS. . IT'S NOT ALL DOWNSIDE. THEN LIQUIDITY THAT ABLE FOR THANKSGIVING. THIS IS BLOOMBERG TECHNOLOGY. >> THIS IS AN INDIVIDUAL HP 100 GPU, NVIDIA'S AI ACCELERATOR. IT'S NOT JUST A CHIP THAT COMES OUT OF A PLANNED. >> ITS TRAINING AI MODELS ARE LIKELY D GX H 100, NVIDIA AI'S SUPERCOMPUTER. >> >> EIGHT H 100 GPU'S COMBINED CAPABLE OF A QUADRILLION FLOATING POINT OPERATIONS PER SECOND. IT IS A SERVER DESIGN AND THIS IS WHAT IT LOOKS LIKE UNDER T

HE LEAD. IT STARTS WITH AN H 100 GPU IN THE FORM OF AN XM XM MODEL. EIGHT ARE TYPED WITH HEAT SENSORS TO DISSIPATE HEAT. THEY ARE CONNECTED ON THE BASEBOARD BY INTER-CONNECTORS. THAT ARE SIMPLY WAYS 60 POUNDS. ADD CPUS AND OTHER COMPONENTS AND A FINISHED SYSTEM WEIGHS ALMOST 300 POUNDS. >> THE SCALE AND AT A REAL WORLD IS BIGGER. SOME OF THE MOST POWERFUL LARGE LANGUAGE MODELS ARE TRAINED ON THE NVIDIA D GX SUPER POD THAT IS 32 D GX H 100 SYSTEMS COMBINED INTO A SCALABLE UNIT. ED: AT ITS MOST MI

ND-BOGGLING SCALED THE D GX SUPER POD CAN BE UP TO 64 SCALABLE UNITS, MORE THAN 16,000 INDIVIDUAL H 100 GPU'S. AND AI COMPANY MAY USE SEVERAL SUPER PARTS TO TRAIN THEIR LL AND. >> THE D GX INFRASTRUCTURE SENT TO HYPER SKILL CLOUD PROVIDERS TO PUT IN MASSIVE DATA CENTERS. ED: WE BRING YOU THAT VIDEO. BECAUSE, IT WAS A POINT OF DISCUSSION ON THE CALL. NVIDIA REPORTING THIRD-QUARTER RESULTS. BEATING EXPECTATIONS IN THE FISCAL THIRD QUARTER YESTERDAY GIVING IT OUTLOOK FOR THE FISCAL FOURTH THAT WAS

STRONG ON ANY ACCOUNT. THE CHIP COMPANY HAS BEEN A MAJOR BENEFICIARY OF THE AI TRADE OF MORE THAN 240% THIS YEAR ON THE STOCK PROMPTING WOLFE RESEARCHERS CHRIS CASO TO REMAIN VERY BULLISH ON THE STOCK. CHRIS CASO JOINS US NOW. WELCOME TO THE PROGRAM WOLFE RESEARCH MANAGER AND DIRECTOR FOR SEMICONDUCTOR THREE OF THE STOCK IS DOWN. WE GO INTO THIS WITH A REALLY HIGH HURDLE. THEY DID NOT PASS THE REALLY HIGH HURDLE BASED ON STOCK REACTION. WHAT WAS THE BIG TAKEAWAY FOR YOU? WHAT DID YOU LEARN ABOUT

NVIDIA'S DATA CENTER BUSINESS? CHRIS: WELL, CERTAINLY THE NUMBERS WERE VERY STRONG. AS YOU SAID, EXPECTATIONS ARE ELEVATED COMING INTO THE BRAND. BUT, -- THE PRINT. THE CONCERN WE HEARD FROM INVESTORS COMING INTO THE EVENT WAS NOT ABOUT HOW STRONG THE NUMBERS ARE NOW. IT IS ABOUT WHERE WE GO FROM HERE. I THINK THERE IS SOME CONCERN OVER PEAK REVENUE HERE IN CALENDAR YEAR 24 PRECISELY BECAUSE NVIDIA HAS BECOME SUCH A LARGE PART OF OVERALL CLOUD CAPEX. WHAT WE THINK WE NEED TO DO NEXT IS GET PEOP

LE COMFORTABLE. COMFORT THAT THERE WILL BE ENOUGH DOLLARS TO BE ABLE TO GENERATE NVIDIA GROWTH. WHAT WE THINK IT'S ON THE NEXT YEAR, THERE IS ENOUGH PRODUCT CYCLE CATALYST, ENOUGH PRODUCTS COMING OUT. MOST IMPORTANTLY THE PRICING OF THE PRODUCTS ARE SUBSTANTIALLY HIGHER DRIVING GROWTH. LONGER-TERM, I THINK WHAT REALLY MOVES THE STOCK OVER $500 IS CONVINCING PEOPLE THAT THERE WAS ENOUGH DOLLARS FLOWING INTO THE DATA CENTER TO BE ABLE TO ACCOMMODATE THE GROWTH. ED: LET'S GO THERE. THIS IS WHAT THE

CEO OF NVIDIA SET ON THE CALL. ABSOLUTELY, HE SEES DATA CENTER CAN GROW THROUGH 2025. SEVERAL FACTORS OR REASONS THEY ARE EXPANDING THEIR SUPPLY SIGNIFICANTLY. DO YOU BUY THAT? THAT'S CALENDAR YEAR 25, NOT FISCAL YEAR 25. CHRIS: CERTAINLY THAT IS THE CASE. WE SPEAK TO SUPPLIERS. CERTAINLY THEY ARE IN A CAPACITY. IT IS A PARTICULAR TYPE OF ASSEMBLY BACK AND CAPACITY THAT IS PRETTY UNIQUE TO NVIDIA. NOBODY EXPECTED TO BE THIS LARGE AT THIS POINT. IT TAKES TIME TO ADD THAT CAPACITY. THAT HAPPENED.

THE OTHER FACTOR THAT I THINK IS SOMEWHAT MISUNDERSTOOD WITH REGARD TO THE STOCK IS A LARGE PART OF THE GROWTH IS COMING FROM PRICING AND THAT IS A FUNCTION OF LOSSES SLOWING DOWN AND CHIPPED THEMSELVES THAT ARE MORE EXPENSIVE. THE H 100 THE CURRENT VERSION IS ALMOST THREE TIMES AS EXPENSES -- EXPENSIVE AS THE PRIOR VERSION BUT THE BENEFIT IT GIVES YOU IS MORE THAN 10 TIMES THE PERFORMANCE. SO BASICALLY, MORE OF THE PRICING IS COMING TO NVIDIA BECAUSE THEY ARE GIVING YOU SO MUCH MORE PERFORMANC

E FOR THE SAME DOLLAR. ED: SO THE BIG UNKNOWN IS THE LONG-TERM ABILITY TO SELL CHIPS INTO CHINA. THIS IS WHAT THE CFO SAID IN THE LETTER TO SHAREHOLDERS. BASICALLY, THERE WILL BE AN IMPACT IN THE FISCAL FALL FROM U.S. TECHNOLOGY CURBS AND THEY WILL SHIP LESS TO CHINA IN THAT QUARTER. BUT, THEY WILL MORE THAN MAKE UP FOR IT IN GROWTH, OR OFFSET BY STRONG GROWTH IN OTHER REGIONS. HOW DO YOU PRICE IN THE CHINA RISK ON THIS STOCK? ED: FOR RIGHT NOW FOR THE JANUARY QUARTER GUIDANCE THERE IS VERY LITT

LE CHINA IN THERE NOW. TO SOME EXTENT THAT HAS BEEN DE-RISKED ALREADY. ALSO OUR OWN CHECKS HAVE INDICATED THERE WILL BE A NEW CHIPS THAT WILL BE COMPLIANT WITH CHINA THAT WILL COME OUT THE FIRST HALF OF NEXT YEAR. YOU WOULD IMAGINE THERE IS PENT-UP DEMAND FOR THAT CHIP SINCE THEY CANNOT SHIP IT IN THE JANUARY QUARTER. THE QUESTION MANAGEMENT DOES NOT KNOW IS WHAT WILL BE THE RECEPTION OF THE CHIP IN CHINA. IT WILL HAVE LESS PERFORMANCE BECAUSE THAT IS WHAT IS REQUIRED TO MEET THE NEW REGULATIONS

. BUT, WHAT WILL THE CHINESE DO WITH IT? OUR VIEW IS WE THINK THE CHINESE CUSTOMERS ARE STILL GOING TO BUY IT. BECAUSE THERE IS REALLY NO ALTERNATIVE IN THE MARKETPLACE NOW AND THE PROBLEM IS THERE ARE LOCAL CHINESE ALTERNATIVES FROM FOLKS LIKE HUAWEI FOR EXAMPLE. BUT, THAT IS ALSO ACCOMPANIED WITH MANUFACTURING RESTRICTIONS ON CHINA. WHILE THEY CAN BUILD NAI CHIP. THEY CAN DESIGN NAI CHIP, BUT NOT WITH LEADING EDGE TECHNOLOGY BECAUSE CHINESE MANUFACTURING FACILITIES CANNOT ACCESS THAT. SO WE TH

INK THE CHINESE WILL HAVE TO BUY NVIDIA PRODUCT EVEN IF IT IS LESS PERFORMANCE BECAUSE THAT IS ALL THAT WILL BE AVAILABLE. ED: CHRIS CASO WOLFE RESEARCH MANAGING DIRECTOR COVERING SEMIS. COMING, BINANCE CEO PLEADS GUILTY TO ANTI-MONEY LAUNDERING AND SANCTIONS VIOLATION. JALAK ED: ANOTHER STORY WE ARE WATCHING IS BINANCE. AFTER ITS CEO CHANGPENG ZHAO PLEADED GUILTY TO ANTI-MONEY LAUNDERING AND SANCTIONS VIOLATIONS UNDER A SETTLEMENT WITH THE U.S. ALLOWING THE CRYPTO EXCHANGE TO CONTINUE OPERATING

. COINBASE CEO BRIAN ARMSTRONG JOINED BLOOMBERG TUESDAY TO DISCUSS. BRIAN: THIS IS A VINDICATION OF THE LONG-TERM STRATEGY COINBASE HAS TAKEN TO BUILD A TRUSTED, REGULATED COMPANY. GOING BACK TO 2012 WE DECIDED TO DO THAT AND GOT THE LICENSES AND TEAMS IN PLACE NECESSARY TO RUN THAT TYPE OF COMPANY. EVERY FEW YEARS WE SAW A NEW TYPE OF COMPANY COME ON THE SCENE THAT DID NOT TAKE THAT APPROACH. SOMETIMES THEY WOULD GROW VERY QUICKLY BECAUSE THEY WERE ABLE TO OFFER PRODUCTS WE DID NOT THINK WERE L

EGAL. INEVITABLY, THEY COME CRASHING DOWN. REGULATORS EVENTUALLY ACT, EVEN IF THEY DON'T ACT QUICKLY. THAT IS WHAT WE SAW IN THIS CASE TODAY. IT HAS NOT ONLY BEEN AN OPPORTUNITY FOR COINBASE TO STEP IN, BUT AN OPPORTUNITY FOR THE INDUSTRY TO TURN THE PAGE HERE AND SAY, YEAH, SOME OF THE RULES ARE CLEAR AROUND AML, KY SEE, OH FACT, THE ISSUES BINANCE STEPPED OVER THE LINE ON. SOME LAYERS OF THE LAW ARE NOT HERE AND WE NEED TO GET REGULATORY CLARITY TO MEASURE THE FUTURE OF THE INDUSTRY IS BUILT H

ERE IN AMERICA NOT ON OFFSHORE UNREGULATED EXCHANGES. THAT IS WHAT WE NEED TO DO NEXT TO PREVENT THIS ACTIVITY IN THE FUTURE. >> EVEN WITH THAT CRACKDOWN THERE WERE SKATING ALLEGATIONS IN THE DOJ CRACKDOWN OF SANCTIONS VIOLATIONS, ILLEGAL TRAFFICKING OF DRUGS. HOW DO YOU KNOW THIS IS IT? HOW DO YOU KNOW THERE AREN'T MORE BAD ACTORS OUT THERE THAT WOULD CONTINUE TO STING CRYPTO? BRIAN: I CAN TELL YOU THE COMPANIES I ENGAGE WITH, AT LEAST THE ONES BUILT HERE IN THE U.S. DO NOT GET BIG HEADLINES BE

CAUSE IT'S NOT SALACIOUS. THEY HAVE NOT BEEN ROCKETED UP BECAUSE THEY ARE NOT FOLLOWING THE RULES. THERE ARE DOZENS OF WELL-INTENTIONED WELL-FUNDED AND COMPLIANT U.S.-BASED CRYPTOCURRENCIES. 52 MILLION AMERICANS HAVE USED CRYPTO NOW. ABOUT 400 MILLION PEOPLE GLOBALLY. WHILE THERE ARE BAD ACTORS THAT TRY TO USE CRYPTO, THE BEST DATA WE HAVE IS IT IS LESS THAN 1% OF THE ACTIVITY IS FOR ILLICIT PURPOSES. THE U.S. DOLLAR CASH IT'S ABOUT 4% ILLICIT ACTIVITY. CRYPTO IS NOT UNIQUELY CRIME-RIDDEN. THE C

ENTRALIZED ACTORS IN CRYPTO NEED TO FOLLOW RULES AROUND TRANSACTION MONITORING LIKE COINBASE HAS BEEN DOING FOR OVER A DECADE TO MAKE SURE BAD ACTORS DON'T TAKE ADVANTAGE OF THE SYSTEMS. ED: THAT WAS THE COINBASE CEO BRIAN ARMSTRONG WITH BLOOMBERG'S SONALI BASAK. LET'S KEEP THE CONVERSATION GOING TO IT SO MUCH HAS HAPPENED OVER THE LAST WHEN HE FOUR HOURS. JALAK JOBANPUTRA IS ALSO OWNED -- FOUNDER AND MANAGING PARTNER OF THE PERFECT VENTURES AND EARLY-STAGE VC FIRM CENTERED ON BLOCKCHAIN, CRYPTO

, AI, HUMAN COMPUTER INTERACTION. POST THE QUESTION'S AND ALI PUT TO BRIAN ARMSTRONG. WHEN YOU ARE IN THE MARKET INVESTING IN THE SECTOR HOW DO YOU KNOW THAT THAT IS IT? THAT'S ALL LEFT -- THAT IS LEFT TO COME OUT? JALAK: IT'S GOOD TO TALK TO YOU AGAIN. WE SPOKE AFTER THE SPX RULING. THE WAY I LOOK AT THIS NOW IS THE OTHER SHOE HAS DROPPED. WE CANNOT GUARANTEE THERE IS NOTHING ELSE OUT THERE, BUT THOSE OF BEST -- AND THOSE OF US IN THE INDUSTRY HAVE BEEN WAITING FOR A WHILE TO SEE WHAT HAPPENS W

ITH FINANCE. -- BINANCE. THEY HAVE BEEN UNDER INVESTIGATION FOR SEVERAL YEARS. CZ HAS BEEN NOTORIOUS FOR MOVING THE COMPANY FOR -- TO DIFFERENT JURISDICTIONS, CHINA, THEN JAPAN, THEN MALTA. WE KNEW SOMETHING WAS COMING UNDER THE FACT THAT THIS FINALLY HAPPENED, THESE ALLEGATIONS WERE PROVEN, CZ IS OUT, BUT THE EXCHANGE IS STILL RUNNING, I THINK THAT IS AN INDICATION THAT THEY UNDERSTAND CRYPTO IS NOT GOING AWAY BUT THEY WANT TO UNDERSTAND -- ENCOURAGES A GOOD ACTORS THAT WANT TO BE COMPLIANT AND

OUR PORTFOLIO IS FULL OF THOSE ENTREPRENEURS AND COMPANIES. WE WELCOME THIS AND REALLY WANT TO MOVE FORWARD. ED: WE HAVE 15 SECONDS. THIS IMPACT YOUR ABILITY TO INVEST, YES OR NO? JALAK: IT MAKES IT EVEN MORE OF AN OPPORTUNITY. WE ARE LEVELING THE PLAYING FIELD FOR THOSE THAT WANT TO BE COMPLIANT. AND, WE ARE LOOKING FORWARD TO WHAT HAPPENS WITH THE ETF AND MORE ADOPTION OF CRYPTO AS BRIAN ALLUDED TO IN HIS INTERVIEW. ED: JALAK JOBANPUTRA WE LOVE HAVING YOU ON THE SHOW FOUNDER AND MANAGING PART

NER OF FUTURE PERFECT VENTURES. MORE TO COME ON BLOOMBERG TECHNOLOGY. WALMARTS AI STORY IS PLAYING OUT. WE SPEAK TO A KEY EXECUTIVE FROM SAN FRANCISCO. ED: IS EXPERIMENTING WITH AI. LAST YEAR WALMART LAUNCHED A TEXT SHOP FEATURE ALLOWING PEOPLE TO PICK WHAT TO BUY, AUTOMATICALLY ADDING IT TO THEIR CART AND CHECKOUT FROM A TEXT MESSAGE. WALMART WANTS TO MAKE ITS APP AND WEBSITE DRESSED AS CONVERSATIONAL WITH AI WORKING ON A GENERATIVE AI POWERED SEARCH WHERE YOU CAN ASK WESTERN -- A QUESTION SIMI

LAR TO HOW YOU WOULD ASK A CHATGPT ON THE WALMART OR WEBSITE TO BRING UP RECOMMENDATIONS. ASKING WHAT THE COURT YOU NEED FOR A HOUSEWARMING PARTY. THERE IS A SHOPPING ASSISTANT CUSTOMERS CAN CHAT WITH WHEN DECIDING WHAT TO BUY LIKE GETTING A RECOMMENDATION FOR WHAT KIND OF SELF FUNDED BY FOR A 10-YEAR-OLD. THE RETAILER INTRODUCED AUGMENTED REALITY TOOLS TO TRY ON CLOTHING VIRTUALLY OR SEE HOW FURNITURE WILL LOOK IN THEIR HOME. YOU CAN TEST HOW A TV WILL LOOK IN YOUR SPACE. YOU CAN COMPARE DIFFER

ENT SIZES OR PRODUCT SUGGESTIONS. SOON WALMART WILL ADD A GENERATIVE AI TO THE MIX. YOU CAN ASK THE AI ASSISTANT HOW TO DECORATE A SPACE AND GET SUGGESTIONS ON PRICING AS WELL AS SEE THE ITEMS IN THE SPACE USING THE AR TECHNOLOGY. WALMART RESTRAINING THE TOOLS ON A VARIETY OF AI MODELS CURRENTLY AVAILABLE, NOT ONE SPECIFIC LARGE LANGUAGE MODEL. THE GENERATIVE AI TOOLS ARE STILL IN THE TEST PHASE BUT WILL BE AVAILABLE TO CUSTOMERS VERY SOON. WALMART IS IN THE AI GAME. LET'S GET INTO IT WITH WALMA

RT U.S. ARMY PLATFORMS OF THE U.S. VICE PRESIDENT SRINI VENKATESAN. WELCOME TO THE PROGRAM. WE OUTLINED SOME TOOLS YOU HAVE BEEN WORKING ON AT WALMART. OF THOSE WE OUTLINED, WHAT IS GAINING MOST TRACTION? THIS IS ABOUT CONSUMER BEHAVIOR AND HOW WE SHOP. I AM CURIOUS TO KNOW WHICH TOOL YOU THINK WILL CHANGE THE GAME IN THAT RESPECT? SRINI: THANK YOU FOR HAVING ME ON THE SHOW. AT WALMART, WE HAVE HAD DRAMATIC CHANGES WHERE CUSTOMERS ARE FINDING WAYS TO DISCOVER, BUY, AND SHOP GOODS. THEY FIND A WA

Y THEY WANT TO SHOP AN ONLINE EXPERIENCE THAT IS SIMPLE FOR THEM. WE ARE TRYING TO MAKE IT EASY FOR THEM TO DO THEIR SHOPPING. TO YOUR QUESTION ON, WHAT IS REALLY GETTING TRACTION? AS WE THINK ABOUT GENERATIVE AI DECISION, THESE ARE THINGS IN THE CUSTOMERS ARE REALLY STARTING TO USE MORE. WE ARE SEEING POSITIVE ENGAGEMENT SO FAR. ED: GIVEN THE LAST FIVE DAYS I HAVE TO ASK, WHERE DOES YOUR TECHNOLOGY COME FROM? THE UNDERLYING LARGE LEG WHICH MODEL THE POWERS TOOL? SRINI: AT WALMART WE HAVE ALWAYS

BEEN INVESTED IN ARTIFICIAL INTELLIGENCE. THOSE OPTIMIZATIONS MADE US WHAT WE ARE IN OUR SUPPLY CHAIN AND TRANSPORTATION SECTOR. WE HAVE TAKEN THOSE LEARNINGS AND CAME INTO CONTACT WITH GENERATIVE AI TOOLS AVAILABLE TO THE PUBLIC. WE HAVE LARGE LANGUAGE MODELS. WE ARE COMBINING THAT WITH ASSISTANT DATA. THAT IS OUR WALMART CATALOG AND OTHER DATA WE ARE SEEING. THAT IS HOW WE HAVE PLANNED RAI TO MAKE IT REALLY POWERFUL. ED: IS THERE A TECHNOLOGY RELATIONSHIP WITH OPENAI AND THEIR GP TECHNOLOGY?

SRINI: WE ARE TRYING TO GET OUT HOW WE GET THE LANGUAGE UNDERSTANDING CORRECT. AT THE COMPANY WE USE STUDENT TOOLS AND OTHER OPEN-SOURCE TOOLS. WE ARE FOCUSED ON OUR INTERNAL DATA THAT WE TURN -- TRAIN THE MODELS ON. ED: IN THE RETAIL CONTEXT, WHAT ARE THE BIGGEST PITFALLS AND RISKS WITH BRINGING GENERATIVE AI TECHNOLOGY INTO THE KIND OF SALES AND TRANSACTIONS STAGE OF YOUR RELATIONSHIP WITH THE CUSTOMER. SRINI: THERE ARE TWO WAYS YOU CAN LOOK AT IT. WE TRIED TO FRAME IT AS I'M A WHAT IS THE CUS

TOMER REALLY LOOKING FOR? WHAT ARE THEY TRYING TO DO WITH THEIR SHOPPING EXPERIENCE? WE HAVE SEEN SHOPPERS DOING MULTIPLE SESSIONS, MULTIPLE THINGS TO REALLY SHOP FOR PRODUCTS. THEY ARE REALLY TRAINED ON TRYING TO FIND THE PROBLEM. AND THE SEARCH AT THE SAME TIME. SO, WHAT IT DOES IS BASICALLY UNDERSTANDS MUCH MORE EASILY. IT IS ACTUALLY ABLE TO MAKE THE SHOPPING EXPERIENCE FLOW. THERE WILL BE LEARNING AS WE DISCOVER WHAT PEOPLE SAY IN THE CONVERSATIONS. THAT IS WHERE RAI IMPROVEMENTS WILL MAKE

SURE WE ARE LEANING ON THE RIGHT SET FOR THE CUSTOMER. ED: WALMART U.S. ARMY PLATFORMS TECH EXECUTIVE VICE PRESIDENT SRINI VENKATESAN THANK YOU FOR YOUR TIME HERE ON BLOOMBERG TECHNOLOGY. WE HAVE MUCH MORE AHEAD. WE WILL GET BACK TO THE BIG STORY OF THE WEEK. THIS IS BLOOMBERG TECHNOLOGY. ♪ >>> WE CONTINUE TO BE COMMITTED TO OPENAI, SAM, GREG, AND THE TEAM IRRESPECTIVE OF WHERE THEY ARE. BRENT: I HAVE NOT SEEN THIS IN 20 YEARS. SEVERAL: TRANSPARENCY IS KEY. PIERRE: IT DOESN'T WORK. MARGARET: THE

CAP PROFIT MODEL OPENAI WAS SPEARHEADING WAS MORE OF AN EXPERIMENT. BRADLEY: I HAVE NOT SEEN THIS STRUCTURE ANYWHERE ELSE AND I DON'T IMAGINE WE WILL SEE IT AGAIN AFTER THE DEBACLE THIS WAS. SAYTA: THEY WANT GOVERNANCE CHANGES. SURPRISES ARE BAD. ED: SOME OF THE MANY VOICES WE HAVE HAD ON BLOOMBERG THIS WEEK REACTING TO THE OPENAI SAGA. FOR MORE LET'S BRING IN THE FOUNDER OF COASTAL VENTURES, THE FIRST VENTURE CHECK WRITTEN TO OPENAI. GOOD MORNING FOR YOU. THANK YOU FOR YOUR TIME ON BLOOMBERG T

ECHNOLOGY. >> IT IS GREAT TO BE HERE ON A HOPEFULLY GOOD OCCASION. ED: I GET THE SENSE FROM YOUR POSTS ON THAT FOR YOU THIS IS A GOOD OCCASION. START WITH YOUR REACTION TO SAM ALTMAN BEING REINSTALLED AT OPENAI. >> I HAVE STATED THIS BEFORE. I WILL STATED ED -- ESTATE IT AGAIN. I AM VERY HAPPY TO SEE SAM BACK. HE IS UNIQUELY POSITIONED FOR STEWARDSHIP OF THIS IMPORTANT COMPANY. IT IS MORE THAN A COMPANY? IT BENEFITS AI TO HUMANITY IN A LARGER WAY OVER THE NEXT FEW DECADES. I AM GRATEFUL WE RESTO

RED IT BACK. ED: MR. KHOSLA YOU OUTLINED SE SAYS THAT WHEN THE BOARD FRIDAY FIRED SAM ALTMAN THEY SAID FACT ARTIFICIAL INTELLIGENCE. WHY WAS THAT THE CONCLUSION YOU REACHED? VINOD: BECAUSE SAM IS UNIQUELY QUALIFIED TO SHEPHERD THIS AND HAS A VISION OVER THE NEXT DECADE OR TWO OF WHAT AI CAN DO. I CANNOT IMAGINE SOMEBODY ELSE BEING ABLE TO STEP IN THOSE SHOES EASILY AND WITHOUT A LOT OF RISK TO THE MISSION OF WHAT OPENAI WAS. ED: CHRIS: --VINOD, WHEN I POSTED YOU ARE COMING ON THE SHOW THERE WAS

A LOT OF INTEREST. YOU ARE THE FIRST VENTURE INVESTOR IN OPENAI. THERE IS A VERY SPECIFIC QUESTION POST FOR YOU. FORGIVE THE FRAMING OF THE QUESTION, BUT IT'S WHAT THE AUDIENCE ASKED. WHAT HAPPENS IF SAM ALTMAN GETS HIT BY A BUS? WHAT HAPPENS IF SAM ALTMAN IS DISCOVERED TO HAVE HAD SOME WRONGDOING? WHAT HAPPENS TO OPENAI IN THAT SCENARIO? VINOD: THERE ARE OTHER PEOPLE AT OPENAI THAT ARE VERY QUALIFIED TO DO THAT. GREG BROCKMAN WOULD BE AMONG MY FAVORITE IN THE CURRENT OPENAI TEAM. I THINK THEY S

HOULD DO YOU RISK THIS BY ADDING MORE PEOPLE TO THE TEAM THAT CAN STEP IN. BUT IF HE DOES GET HIT BY A BUS, I THINK WE WOULD HAVE TO DO WITH GREG BROCKMAN. WHO IS VERY MUCH OF THE SAME VISION INVENTION. ED: WHAT WE ARE TALKING ABOUT IS KEY MAN RISK. I HAVE BEEN REPORTING ON THIS STORY SINCE FRIDAY LUNCHTIME. CONSIDERING WHAT IS HAPPENING. THE TAKEAWAY HAS BEEN THE VALUE OF OPENAI APPEARS TO BE THE INTELLECTUAL CAPITAL OF ITS PEOPLE. WHEN MICROSOFT REACTED TO THE NEWS, THE IDEA WAS IN THERE KIND

OF MUTINY GOING ON THAT THOSE PEOPLE WERE SIMPLY GOING TO ENJOY MICROSOFT AND I WONDERED WHAT YOU THOUGHT ABOUT THAT EVENTUALITY WHICH TO SOME EXTENT NOW IS ACADEMIC. BUT THERE IS STILL A CLOSE TIE BETWEEN THE TWO. VINOD: I THINK THEY'RE CLOSE TIE HELPS US MAKE PROGRESS WITH THIS IN AI. IT NEEDS A LOT OF RESOURCES AND FRANKLY I AM VERY PLEASED OPENAI IS THERE, GOOGLE IS THERE AND THERE ARE LESS -- AT LEAST TWO MAJOR CREDIBLE EFFORTS IN THE AI INDUSTRY. SO, I DO THINK THAT MICROSOFT'S ♪ SUPPORTIN

G OPENAI HELPS MOVE IT ALONG TO GIVE IT THE RESOURCES GOOGLE HAS INTERNALLY AND MORE COMPETITION IS GENERALLY A GOOD THING AND MORE AI WILL MAKE PROGRESS MOVE FASTER. I AM VERY HAPPY WITH THAT. I WILL NOT COMMENT ON OPENAI TEAM BECOMING A PART OF MICROSOFT AI. I ALWAYS BELIEVED WE WOULD FIND A RESOLUTION, IT WAS ONLY A MATTER OF TIME. SO, I HAD COMPLETE FAITH IN THE SOLUTION. IN FACT, MY CONVERSATION WITH SAM AROUND NOON FRIDAY WHEN THIS WAS FIRST ANNOUNCED IS I DO NOT THINK IT IS OVER WAS MY FI

RST COMMENT BACK TO SAM. ED: YOU DID NOT THINK IT WAS OVER FRIDAY LUNCHTIME. THAT SEEMS LIKE AN ATTORNEY IDEA GO THAT IT WAS FRIDAY LUNCHTIME WHEN THE HEADLINES BROKE. IT IS AN ISSUE OF THE BOARD AND CORPORATE GOVERNANCE, RIGHT? WE KNOW BRETT TAYLOR, AT LEAST ON AN INTERIM BASIS, JOINS THE BOARD ALONG WITH LARRY SUMMERS. LARRY SUMMERS IS A PAID CONTRIBUTOR OF BLOOMBERG TELEVISION. THEN MY UNDERSTANDING IS ADAM TO ANGELO STAYS AT THE BOARD. TO YOUR MIND, AS AN INVESTOR IN THE COMPANY, YOU KNOW TH

E NAMES IN SILICON VALLEY. IS THIS ADDRESSING THE CORPORATE GOVERNANCE QUESTION IT OFF? VINOD: I HAVE BEEN ON A BOARD WITH LARRY SUMMERS AT SQUARE, NOW CALLED BLOCK. I ADMIRED LARRY. I THINK OVER TIME THE BOARD WILL BUILD UP TO MORE GOVERNANCE AND I THINK THAT THREE IS A SMALL BOARD BUT OVER TIME THERE WILL BE MORE GOVERNANCE AT A BETTER PROCESS. I THINK WE LEARNED AN IMPORTANT LESSON ON GOVERNANCE HERE. FRANKLY, I THINK IN MY REMOTE IMAGINATION, I IMAGINE SOMETHING LIKE THIS COULD HAPPEN OR THE

BOARD WOULD DO THIS. THERE WERE SOME ERRANT PEOPLE ON THE BOARD THAT MISINTERPRETED THEIR OWN RELIGION AROUND EA FOR EFFECTIVE ALTRUISM. SO, --. ED: WHAT --. VINOD KHOSLA I THINK THIS WAS REALLY --VINOD: I THINK THIS WAS REALLY ERRANT, SHOCKING, SURPRISING IN EVERYWHERE, ALMOST UNEXPECTED UNDER ANY CIRCUMSTANCE. OPENAI SPOKE TO THAT BY OFFERING TO JOIN SAM IN WHATEVER HE DID. ED: I WOULD LOVE TO GET INTO THE EA AND X THREAT DEBATE AND WE WILL IN A MOMENT. YOU JUST MENTIONED WHAT YOU SEE AS BAD

ACTORS. DO YOU KNOW DEFINITIVELY, AS AN INVESTOR IN THIS COMPANY, AND, YOU SAID YOU HAD SPOKEN TO SAM FRIDAY MIDDAY, DO YOU HAVE A CLEAR SENSE OF WHY SAM WAS FIRED IN THE FIRST PLACE? VINOD: I HAVE NOT TALKED TO THE BOARD MEMBERS THAT PARTICIPATED IN THAT DISCUSSION. IN -- AND, FRANKLY, I HAVE VERY LITTLE INTEREST IN SPEAKING TO THE TWO MEMBERS OF THAT LEFT. I THINK IT IS ERRANT BEHAVIOR ON THEIR PART. IT WAS, AS WAS WIDELY REPORTED BY ILIA HAVING SOME CONCERNS. ILIA HAS SINCE CHANGED HIS MIND.

I ADMIRE IN THE A LOT -- ILIA FOR CHANGING HIS MIND PUBLICLY. HE DESERVES REAL KUDOS FOR THAT. I HAVE NOT TALKED TO THE BOARD DIRECTLY THAT MADE THE DECISION WITHOUT SAM, WITHOUT GREG. SO I CANNOT SPEAK TO THAT FURTHER. SRINI: TO BE TIER YOU ARE IN THE SCHOOL OF THOUGHT THAT ILIA DESERVED A SECOND CHANCE TO CARRY ON OR CONTINUE WITH OPENAI? VINOD: ABSOLUTELY. ED: LET'S GET TO THE DEBATE. THE EXISTENTIAL THREAT DEBATE. MUCH OF WHAT HAS BEEN DISCUSSED IS A PHILOSOPHICAL POINT OF DIFFERENCE, RIGHT?

SAM, AT LEAST AS I HAVE REPORTED, IS THE PRODUCT GUIDEV, RIGHT? HE LEADS THE GLOBAL NEGOTIATION WITH POLICYMAKERS. HE ATTRACTS TALENT. THE BOARD WAS, AS OF FRIDAY, LARGELY MADE UP OF ACADEMICS THAT SEEM TO HAVE AN EMPHASIS ON THE EXISTENTIAL THREAT THAT AI POSES TO HUMANKIND. WHERE DO YOU STAND ON THAT DEBATE OF COMMERCIALIZATION VERSUS SLOWING DOWN, LOOKING AT WHAT THE RISKS ARE? VINOD: I WROTE A PIECE FOR THE INFORMATION.COM THIS WEEKEND. ON THIS RISK ISSUE. AND WHAT I FEEL HAPPENED. HUMANITY

FACES A BASKET OF RISKS. SINCE YET -- CINDY AT AI EXISTENTIAL RISK IS NO DIFFERENT THAN AN ASTEROID HITTING THE PLANET EITHER. THERE ARE THESE RISKS HUMANITY FACES READ THIS BASKET OF RISK HAS TO BE BALANCED AGAINST A BASKET OF OPPORTUNITY TO FREE HUMANITY FROM THE SLAVERY OF REALLY BAD HOURLY JOBS WHERE YOU DO THE SAME THING FOR EIGHT HOURS A DAY REPETITIVELY FOR 30 YEARS OF YOUR CAREER. OR, WHERE YOU CAN HAVE FREE DOCTORS AVAILABLE TO EVERYBODY ON THE PLANET. OR, NEAR FREE DOCTORS AND NEAR FR

EE TUTORS. MY WIFE'S NONPROFIT IS PROVIDING FREE TUTORS TO EVERYBODY IN CONJUNCTION WITH OPENAI. ON THEIR WEBSITE. AND IN THE OPENAI CHATGPT STORE. THOSE KINDS OF BENEFITS, INCLUDING 50% OF THE PEOPLE ON THE PLANET FROM THE KIND OF SLAVERY THAT HOURLY REPETITIVE JOBS AFFORD THEM, AND ENOUGH GDP GROWTH TO PAY FOR THOSE PEOPLE. THAT IS WHAT THE OPPORTUNITY IS. SO, RISKS HAVE TO BE BALANCED AGAINST OPPORTUNITY. THAT HAS BEEN FUNDAMENTALLY MISSING. THERE IS A VERY, VERY HIGH RISK OF CHINA HAVING SUP

ERIOR AI AND INTERFERING, STARTING NEXT YEAR IN THE 2020 FOR ELECTION, WITH AI THAT CONVINCES VOTERS WITH ARGUMENTS AND LIES. THERE ARE MANY RISKS THAT HAVE TO BE BALANCED. NOT JUST ONE FROM A SCI-FI MOVIE FANTASY GONE WILD. THAT SAYS ROBOTS TAKE OVER AND DESTROY HUMANS. THAT'S PRETTY SILLY IN THE BASKET OF RISKS THAT WE ARE ACTUALLY DEALING WITH. THERE ARE SERIOUS RISKS WE NEED TO ADDRESS BOTH IN THIS WEEKENDS PAPER, THE BLOG I PUBLISH ON CHINA AS OUR PRINCIPAL RISK IN AI. A FEW WEEKS AGO ON ME

DIUM.COM. THOSE ARE WORTH LOOKING AT AND NEED TO BE TREATED SERIOUSLY. BUT, NOT THIS WAY. ED: THANK YOU FOR OUTLINING THE SEA SAYS. BACK TO CORPORATE GOVERNANCE. THE NOT FOR PROFIT. YESTERDAY WE HAD A JOSH WOLF OF LUX CAPITAL ON THE SHOW, SOMEBODY YOU PROBABLY KNOW. HE SAID THE FIRST EXAM ALTMAN SHOULD DO WHEN HE RETURNS TO OPENAI IS TAKE OPENAI PUBLIC, DO AN IPO. WHAT'S YOUR RESPONSE TO THAT? VINOD: I WON'T COMMENT ON WHAT THEY SHOULD DO. I THINK OPENAI IS IN A GOOD POSITION. IT IS A GOOD FINAN

CIAL POSITION. THE ONLY REASON TO GO PUBLIC WOULD BE TO -- BECAUSE IT NEEDS MORE RESOURCES. I DO NOT THINK IT NEEDS MORE RESOURCES RIGHT NOW. WHAT I WOULD SAY IS THE STRUCTURE IS NOT AS UNUSUAL AS PEOPLE MAKE IT OUT TO BE. THERE ARE COMPANIES IN EUROPE OWNED BY NONPROFITS. SIGNIFICANTLY OWNED AND CONTROLLED BY NONPROFITS. THAT STRUCTURE HAS EXISTED IN EUROPE BEFORE. I THINK THERE IS NOTHING WRONG WITH THE STRUCTURE. THERE WAS SOMETHING WRONG WITH THE GOVERNANCE. I HOPE OVER THE NEXT YEAR WE CAN

FIX THAT. ED: FINALLY, A LOT OF PEOPLE ARE THINKING ABOUT THE 770 OPENAI EMPLOYEES. ONE POINT WAS MADE BY ME TO SOURCES IN THE VALLEY. THIS PENDING TENDER PRESENTED POTENTIALLY LIFE-CHANGING AMOUNTS OF MONEY FOR THOSE PEOPLE. THEY WERE WILLING TO PUT IT ON HOLD OR JEOPARDIZE IT IN STICKING WITH SAM. YOU KNOW WITH THE LATEST ON THE TENDER IS AND YOUR THOUGHTS ON STAFF? VINOD: I THINK IT'S TOO EARLY TO COMMENT ON THAT. BUT, I DO NOT KNOW ANY REASON WHY THE WORLD WOULD BE ANY DIFFERENT TOMORROW THA

N WHAT IT WAS ON THURSDAY EVENING. ED: OK. KHOSLA VENTURES FOUNDER VINOD KHOSLA I AM GRATEFUL FOR YOUR TIME. YOU FOR YOUR TIME. THIS IS BLOOMBERG TECHNOLOGY. ED: ALSO IN THE NEWS TALKING TECH. NORTH KOREA IS CLAIMING A VICTORY THAT IT SUCCESSFULLY PUT A SPY SATELLITE IN ORBIT MOVING KIM JONG-UN CLOSER TO A PLEDGE TO KEEP AN EYE ON THE U.S. FORCES OPERATING IN THE REGION. OFFICIALS IN SOUTH KOREA SAY THEY ASSESSED THE SATELLITE LAUNCH BUT ADDED IT IS STILL UNCLEAR IF THE DEVICE WAS OPERATIONAL. J

ACK MA IS WALKING BACK PLANS TO SELL 10 MILLION SHARES OF ALIBABA. THE MAN WHO FOUNDED THE INTERNET COMPANY WILL CONTINUE TO HOLD ONTO HIS STAKE WORTH ABOUT 870 MILLION U.S. DOLLARS. ALIBABA SHARES RECENTLY PHRASED A SET OFF RESULTING IN A 22 BILLION DOLLARS DROP IN MARKET VALUE IN A SINGLE DATE. SLIM PICKINGS FOR THIS THANKSGIVING BOX OFFICE WEEKEND. WORKING AGAINST DISNEY'S LATEST ANIMATED FILM WISH. IN THE PAST THANKSGIVING HAS RANKED AMONG THE MOST LUCRATIVE TIMES FOR MOVIE STUDIOS. IN RECEN

T YEARS A NUMBER OF FACTORS CONSPIRED AGAINST THAT SUCH AS THE RISE OF STREAMING SERVICES AND SCALED-BACK MARKETING DUE TO THE HOLLYWOOD STRIKES. IT'S BEEN AN INCREDIBLE WEEK IN SILICON VALLEY. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. FOR THOSE IN THE U.S., HAPPY THANKSGIVING. AROUND THE WORLD, DO NOT FORGET TO RECAP WHATEVER YOU GET YOUR PODCASTS. SO MANY OF YOU ARE LISTENING TO IT ON APPLE, SPOTIFY, I HEART AND OF COURSE ALL THE BLOOMBERG PLATFORMS. HAPPY THANKSGIVING TO ALL AMER

ICANS IN THE WORLD. STAY TUNED IN. THIS IS BLOOMBERG TECHNOLOGY.