Microsoft CEO on Sam Altman and OpenAI Drama; Hostage Talks Progress Between Israel and Hamas

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:07.800 --> 0:00:11.560 Karen, we begin with the controversy surrounding open Ai. A 0:00:11.640 --> 0:00:15.040 day after the founder, Sam Altman left for Microsoft, the 0:00:15.080 --> 0:00:18.880 firm says it is in quote intense discussions to unify 0:00:18.960 --> 0:00:22.240 the company. In an internal memo reviewed by Bloomberg News, 0:00:22.320 --> 0:00:26.239 Vice president of Global Affairs, Anna Macanju says open Ai 0:00:26.360 --> 0:00:29.720 management is also in touch with Aldman. In an interview 0:00:29.720 --> 0:00:33.480 with Bloomberg News, Microsoft CEO Satia Nadella signaled he would 0:00:33.479 --> 0:00:35.560 be open to Aldman going back to open ai. 0:00:36.120 --> 0:00:39.080 We really want to partner with open ai, and we 0:00:39.120 --> 0:00:41.120 want to partner with Sam. And so you respect to 0:00:41.240 --> 0:00:44.559 where Sam is. He's working with Microsoft, and that is 0:00:44.640 --> 0:00:47.680 the case on Friday, and that'll be that's the case today, 0:00:48.080 --> 0:00:50.960 and we will I absolutely believe that'll be the case tomorrow. 0:00:51.159 --> 0:00:54.240 Microsoft CEO Satia Nadella says, no matter what happens, open 0:00:54.240 --> 0:00:58.400 ai needs governance changes. Microsoft shares closed at a record 0:00:58.480 --> 0:00:59.240 high yesterday. 0:01:00.200 --> 0:01:03.320 Nearly all of open AI's employees threatened to quit and 0:01:03.360 --> 0:01:07.000 follow Altman to Microsoft unless the current board resign. Gene 0:01:07.040 --> 0:01:10.520 Munster managing partner at deep Water Asset Management thinks Altman 0:01:10.600 --> 0:01:12.240 will land back at open AI. 0:01:12.560 --> 0:01:16.240 The board's going to be gone. So when if Altman 0:01:16.319 --> 0:01:18.120 goes back, by the way, that is my prediction what 0:01:18.200 --> 0:01:20.000 happens here. I think he's actually going to return to 0:01:20.040 --> 0:01:23.080 open AI. If he goes back to open AI, they're 0:01:23.080 --> 0:01:25.560 going to be more aggressive at opening these models up. 0:01:26.040 --> 0:01:28.360 And if he stays with Microsoft, they're going to be 0:01:28.400 --> 0:01:30.840 more aggressive. And I think at the end of the day, 0:01:30.840 --> 0:01:34.400 you're probably going to see faster adoption of AI features. 0:01:34.920 --> 0:01:36.760 It's been coming at a neck break speed, but I 0:01:36.760 --> 0:01:38.839 think it's going to be even faster based on everything 0:01:38.840 --> 0:01:41.680 that's happened here. This is really allowing Altman to take 0:01:41.680 --> 0:01:43.800 his gloves off and probably do what he's wanted to 0:01:43.800 --> 0:01:45.240 do for the last eight years. 0:01:45.240 --> 0:01:49.040 And that's deep Water Asset Management's Gene Munster speaking to Bloomberg. 0:01:49.320 --> 0:01:51.200 Now, let's get to the latest from the Middle East. 0:01:51.280 --> 0:01:53.920 The leader of Hamas Ismail Hania says his group is 0:01:54.000 --> 0:01:57.200 close to reaching a truce agreement with Israel through talks 0:01:57.240 --> 0:02:00.520 mediated by contract President Biden has said both sides are 0:02:00.520 --> 0:02:02.400 near a deal to free some of the two hundred 0:02:02.400 --> 0:02:05.280 and forty hostages Hamas seized in the October seventh attack. 0:02:05.560 --> 0:02:08.480 White House National Security spokesman John Kirby says there would 0:02:08.520 --> 0:02:10.520 need to be a pause in the fighting if. 0:02:10.440 --> 0:02:12.880 You're going to secure the release of hostages, and we 0:02:12.919 --> 0:02:14.920 certainly hope we're going to be able to do that soon. 0:02:15.560 --> 0:02:17.120 You got to make sure they can get from. 0:02:16.960 --> 0:02:20.919 Where they are to safety and do that as safely 0:02:20.960 --> 0:02:22.840 as possible, which means you're going to have to have 0:02:22.960 --> 0:02:25.840 at least a temporary, localized stop in the fighting. 0:02:26.120 --> 0:02:28.680 White House spokesman John Kirby says it's been difficult getting 0:02:28.720 --> 0:02:33.120 information on the hostages because Hamas has control of that access. Meantime, 0:02:33.160 --> 0:02:36.080 Israeli forces continue to engage in heavy fighting in the 0:02:36.080 --> 0:02:38.720 Northern Gaza Strip. Israel's taking control of much of the 0:02:38.720 --> 0:02:42.000 Alshifa Hospital, which it says Hamas used as a command 0:02:42.000 --> 0:02:42.960 and control center. 0:02:43.400 --> 0:02:45.840 Well Nathan, the White House is open accounts on Meta's 0:02:45.840 --> 0:02:50.040 social media platform as threads for the President and Vice President, 0:02:50.080 --> 0:02:52.320 and Bloomberg said Baxter has the details. 0:02:52.639 --> 0:02:54.520 The White House says it's just another way to meet 0:02:54.560 --> 0:02:57.320 people where they are. It says it's been using different 0:02:57.360 --> 0:03:00.519 forms of media since the beginning of the administration, and 0:03:00.680 --> 0:03:03.000 this has been in motion for several weeks now, but 0:03:03.440 --> 0:03:05.880 the timing does come in the wake of Elon Musk's 0:03:05.919 --> 0:03:09.520 endorsement of antisemitic content, and according to sources, the White 0:03:09.560 --> 0:03:12.960 House is not considering ending its use of ex accounts 0:03:12.960 --> 0:03:15.840 because of that, although they do say the Musk post 0:03:16.000 --> 0:03:20.480 angered Biden and his aides Ed Baxter Bloomberg Radio OK, 0:03:20.880 --> 0:03:21.280 thank you. 0:03:21.400 --> 0:03:24.920 A new front's opening in the US China chip conflict. 0:03:25.280 --> 0:03:28.080 President Biden is shifting focus to an emerging area of 0:03:28.120 --> 0:03:33.200 the contest for technological supremacy, the process of packaging semiconductors 0:03:33.240 --> 0:03:36.680 that has increasingly seen as a path to achieving higher performance. 0:03:36.960 --> 0:03:39.480 The US isn't alone though, in recognizing the potential of 0:03:39.560 --> 0:03:43.080 so called advanced packaging. China too is capitalizing on an 0:03:43.120 --> 0:03:46.640 area that is not subject to sanctions, capturing global market 0:03:46.680 --> 0:03:50.000 share and achieving progress that it was denied in manufacturing 0:03:50.080 --> 0:03:51.280 high end chips. 0:03:51.400 --> 0:03:52.440 Well staying with ships. 0:03:52.520 --> 0:03:56.320 Nathan Nvidia reports earnings after the bill. The high flying 0:03:56.360 --> 0:03:59.120 semiconductor stock is up two hundred and forty five percent 0:03:59.200 --> 0:04:03.600 so far this year year. Mandy Singh, senior technology analysts 0:04:03.600 --> 0:04:06.119 for Bloomberg's and Video shares closed at an all time 0:04:06.200 --> 0:04:07.560 high yesterday. 0:04:07.360 --> 0:04:10.400 And Karen was staying on the earnings front. Zoom reported 0:04:10.440 --> 0:04:14.280 better than expected revenue on strong enterprise sales. The company 0:04:14.320 --> 0:04:18.159 who signature video software became the essential communications tool for 0:04:18.560 --> 0:04:21.640 home bound Americans during the pandemic, has now turned its 0:04:21.680 --> 0:04:24.400 focus to business customers, as Zoom has added features for 0:04:24.440 --> 0:04:27.479 those clients, including word processing, and stepped up the use 0:04:27.520 --> 0:04:31.840 of artificial intelligence to buttress its main video conferencing service. 0:04:32.360 --> 0:04:35.320 Nathan Investors also have their eyes on US treasuries, wondering 0:04:35.320 --> 0:04:37.840 if the world's deepest dead market will suffer a third 0:04:37.880 --> 0:04:39.960 straight year of losses, and we get more in this 0:04:40.080 --> 0:04:43.440 live report from Bloomberg's John Tucker. John, Good morning, Karen. 0:04:43.600 --> 0:04:46.760 Investors who anticipated twenty twenty three would be the year 0:04:46.880 --> 0:04:49.839 of the bond were instead hit by waves of turmoil, 0:04:50.080 --> 0:04:52.679 but the year may have a happy ending, as treasury 0:04:52.800 --> 0:04:55.440 sore this month, traders now bet the Fed is done 0:04:55.520 --> 0:04:58.159 with hiking interest rates and in fact will cut rates 0:04:58.160 --> 0:05:00.480 of the first half of next year. You hope that 0:05:00.520 --> 0:05:03.920 happy narrative gets support when the Fed today releases minutes 0:05:03.960 --> 0:05:07.280 of its last policy meeting. The surgeon bond price has 0:05:07.320 --> 0:05:10.480 also got a green light to continue yesterday after an 0:05:10.520 --> 0:05:13.800 auction of twenty year debt went off without a hitch. 0:05:14.360 --> 0:05:17.120 US treasuries have gained two point six percent this month 0:05:17.120 --> 0:05:19.800 through Friday, cutting the loss for the year to merely 0:05:19.920 --> 0:05:22.920 two tenths of a percent, according to data compiled by 0:05:22.960 --> 0:05:25.480 Bloomberg John Tucker Bloomberg Radio. 0:05:25.360 --> 0:05:27.520 All right, John, thank you. Finally, as we approach the 0:05:27.560 --> 0:05:31.640 Thanksgiving holiday, Black Friday and Cyber Monday, spending are projected 0:05:31.680 --> 0:05:34.919 to hit new highs. Consumers plan to spend an average 0:05:34.960 --> 0:05:37.479 of five hundred and sixty seven dollars during those two 0:05:37.480 --> 0:05:40.120 shopping events. That would be a thirteen percent increase from 0:05:40.200 --> 0:05:43.640 last year. That result is a record for Deloitte's annual 0:05:43.680 --> 0:05:47.479 Black Friday Cyber Monday survey. About eighty four percent of 0:05:47.520 --> 0:05:49.760 shoppers say they feel confident enough to stick with the 0:05:49.760 --> 0:05:52.880 budgets they set in September four and ten say they 0:05:52.880 --> 0:05:58.200 will finish their holiday shopping during this long holiday weekend, 0:05:58.960 --> 0:06:01.400 futures pointing to a month honestly hire open this morning 0:06:01.400 --> 0:06:03.560 on Wall Street. This is Bloomberg. 0:06:06.440 --> 0:06:07.080 Sor Ry Nathan. 0:06:07.120 --> 0:06:07.320 Thanks. 0:06:07.360 --> 0:06:08.680 It's time now for a look at some of the 0:06:08.680 --> 0:06:11.040 other stories making news around the world. For that were 0:06:11.080 --> 0:06:13.919 joined by Bloomberg's Amy Morris Amy, Good Morning. 0:06:14.040 --> 0:06:14.960 Good morning, Karen. 0:06:15.000 --> 0:06:18.320 Police in Ohio see a shooter opened fire at a Walmart, 0:06:18.640 --> 0:06:21.960 wounding four people before apparently killing himself. The attack took 0:06:21.960 --> 0:06:24.520 place last night out of Walmart and Beaver Creek in 0:06:24.560 --> 0:06:28.560 the Dayton metropolitan area. Beaver Creek Police Captain Scott Molnar 0:06:28.680 --> 0:06:32.000 says the four victims are currently being treated for their injuries. 0:06:32.080 --> 0:06:33.359 Centured four victims. 0:06:34.040 --> 0:06:37.200 The conditions of the victims right now is unknown, as they. 0:06:37.080 --> 0:06:40.200 Were all transported to area hospitals for treatment. 0:06:40.360 --> 0:06:42.680 Police did not immediately release the name of the gunman 0:06:42.800 --> 0:06:45.960 or a possible motive for the attack. Meanwhile, in Colorado, 0:06:46.040 --> 0:06:48.520 another mass shooting, police say three people are dead and 0:06:48.560 --> 0:06:51.760 fourth is in critical condition after a gunman opened fire 0:06:51.800 --> 0:06:52.680 in Custer County. 0:06:52.920 --> 0:06:54.640 Police say that gunman is on the run. 0:06:54.680 --> 0:06:56.720 They believe he was in a civil dispute with one 0:06:56.720 --> 0:06:59.960 of the victims over property lines. Donald Trump's gag order 0:07:00.000 --> 0:07:03.040 our hearing is over a panel of three federal appeals 0:07:03.040 --> 0:07:06.240 witnesses appeared reluctant to give Trump a green light to 0:07:06.279 --> 0:07:10.160 resume public attacks on witnesses, prosecutors, and court staff, but 0:07:10.240 --> 0:07:12.480 they did signal that they would be open to narrowing 0:07:12.520 --> 0:07:16.000 the scope of the gag order. Judge Patricia Millett. 0:07:16.000 --> 0:07:19.040 We certainly want to make sure that the criminal trial 0:07:19.120 --> 0:07:24.880 process and its integrity as truth finding function are protected. 0:07:27.680 --> 0:07:32.440 Use a careful scalpel here and not step into really 0:07:33.040 --> 0:07:35.840 sort of skewing in the political arena, don't we. 0:07:36.240 --> 0:07:38.600 The DC Circuit put the case on a fast track 0:07:38.720 --> 0:07:41.160 rather than a typical appeal, but did not say when 0:07:41.160 --> 0:07:44.040 it plans to rule. Trump's lawyers have already said they'll 0:07:44.080 --> 0:07:46.480 ask the Supreme Court to intervene if the Appeals Court 0:07:46.520 --> 0:07:50.160 doesn't lift the full order. Thanksgivings just two days away, 0:07:50.200 --> 0:07:53.800 but the travel rush is already underway by road, railer, runway. 0:07:54.200 --> 0:07:58.000 Millions of Americans are traveling this week. TSA expects this 0:07:58.040 --> 0:08:00.400 to be one of the busiest travel periods of the year. 0:08:00.960 --> 0:08:04.480 This traveler, flying out of the Oakland International Airport refuses 0:08:04.520 --> 0:08:06.760 to lose her cool if things go awry. 0:08:06.960 --> 0:08:09.040 I imagine there'll be a few, But how does your 0:08:09.080 --> 0:08:09.520 roll with it? 0:08:09.520 --> 0:08:12.240 Triple A says Today and tomorrow our peak travel windows, 0:08:12.240 --> 0:08:15.320 when nearly five million people will pass through airports, a 0:08:15.440 --> 0:08:19.040 million people will ride the rails, and fifty million Americans 0:08:19.040 --> 0:08:21.880 will be on the highway global news twenty four hours 0:08:21.880 --> 0:08:24.239 a day and whenever you want it with Bloomberg News Now. 0:08:24.400 --> 0:08:26.720 I'm Amy Morrison. This is Bloomberg Karen. 0:08:27.120 --> 0:08:29.000 All right, Amy, thank you what we do bring you 0:08:29.080 --> 0:08:32.240 news throughout the day right here on Bloomberg Radio. But 0:08:32.280 --> 0:08:34.360 as you heard Amy say, now, you can get the 0:08:34.440 --> 0:08:38.760 latest news on demand whenever you want it. Just subscribe 0:08:38.800 --> 0:08:41.839 to Bloomberg News Now to get the latest headlines at 0:08:41.880 --> 0:08:45.119 the click of a button. Get informed on your schedule. 0:08:45.240 --> 0:08:48.840 You can listen and subscribe to Bloomberg News Now on 0:08:48.920 --> 0:08:53.199 the Bloomberg Business app, Bloomberg dot com, plus Apple, Spotify, 0:08:53.400 --> 0:09:01.440 and anywhere else you get your podcasts at his time. 0:09:01.480 --> 0:09:04.840 Now for the Bloomberg Sports Update, here's John stash Hour, 0:09:05.000 --> 0:09:06.000 John Karen. 0:09:06.040 --> 0:09:09.840 Philadelphia Eagles coach Nick Sirianni admits the previous game between 0:09:09.840 --> 0:09:12.720 his team and the Kansas City Chiefs a little bit 0:09:12.760 --> 0:09:15.640 more important. That was last February Super Bowl won by 0:09:15.720 --> 0:09:18.360 k C. But the Eagles did get some revenge and 0:09:18.400 --> 0:09:20.640 a Monday night or at Arrowhead Stadium, winning twenty one 0:09:20.720 --> 0:09:24.080 to seventeen. They trailed seventeen to seven at halftime. Jalen 0:09:24.120 --> 0:09:26.040 Hurts scored a touchdown on the third quarter and then 0:09:26.080 --> 0:09:29.280 the go ahead TV on a quarterback sneak cappin in 0:09:29.360 --> 0:09:31.800 eighty yar drive. With six point twenty remain the Eagles 0:09:31.800 --> 0:09:34.080 are nine to one to the first team since the 0:09:34.080 --> 0:09:36.199 Colts in two thousand and five and six to start 0:09:36.240 --> 0:09:39.520 consecutive seasons with that good of a record. Quarterback change 0:09:39.520 --> 0:09:42.280 in New York no surprise the Jets benching the struggling 0:09:42.360 --> 0:09:45.439 Zach Wilson, turning to Tim Boyle, who's only made three 0:09:45.559 --> 0:09:47.880 NFL starts and has never won a game. Joe Flacco 0:09:48.360 --> 0:09:51.600 signing with the Cleveland Browns, although the Browns will keep 0:09:51.640 --> 0:09:55.240 Dorian Thompson Robinson the rookie as their starter, replacing the 0:09:55.280 --> 0:09:58.360 injury to Shawn Watson. Gino Smith as an elbow injury, 0:09:58.400 --> 0:10:00.800 hopeful that he can play for Seattle in the game 0:10:00.920 --> 0:10:04.480 Thursday night against the forty nine Ers, I'm sending the NBA. 0:10:04.760 --> 0:10:07.840 Charlotte beat the Celtics at overtime one twenty one to 0:10:07.960 --> 0:10:10.760 one eighteen. The Hornets had lost four in a row. 0:10:10.800 --> 0:10:13.600 It ends the Celtics six game winning street. Jason Tatum 0:10:13.600 --> 0:10:16.640 scored forty five in the loss. The Warriors had lost 0:10:16.640 --> 0:10:19.160 six in a row, but Steph Curry back in the lineup, 0:10:19.160 --> 0:10:20.800 but he scored thirty two in a one twenty one 0:10:20.840 --> 0:10:24.240 one sixteen win over Houston. Six straight loss for Washington 0:10:24.280 --> 0:10:26.760 being home by Milwaukee one forty two to one twenty nine. 0:10:26.760 --> 0:10:30.520 Giannis Duntractempo scored forty two shot twenty of twenty three. 0:10:30.760 --> 0:10:33.760 Bruins lost in overtime at Tampa Bay John Station with 0:10:33.760 --> 0:10:35.640 Bloomberg Sports Ken all. 0:10:35.559 --> 0:10:38.840 Right, John, thank you. Coming up on Bloomberg day Break. 0:10:38.880 --> 0:10:41.760 You've been hearing a lot about Open Ai and Sam 0:10:41.800 --> 0:10:45.040 Altman and Microsoft. Of course, we'll be talking to the 0:10:45.120 --> 0:10:49.800 Microsoft CEO, Satia Nadella. He joined our Emily Chang, and 0:10:50.240 --> 0:10:53.640 he's going to discuss this entire story with us straight ahead. 0:10:53.679 --> 0:10:56.600 And ahead of that conversation, futures are lower with SNP 0:10:56.760 --> 0:10:59.800 futures down a tenth of a percent, down about five points. 0:11:00.000 --> 0:11:02.400 And this is Bloomberg. 0:11:04.520 --> 0:11:07.520 From coast to coast, from New York to San Francisco, 0:11:07.840 --> 0:11:12.920 Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business 0:11:12.920 --> 0:11:14.640 app in Bloomberg dot Com. 0:11:14.720 --> 0:11:16.680 This is Bloomberg Daybreak. 0:11:17.960 --> 0:11:18.480 Good morning. 0:11:18.520 --> 0:11:21.520 I'm Nathan Hager. We continue to follow the saga at 0:11:21.679 --> 0:11:25.520 open Ai after a whirlwind of events over the weekend 0:11:25.640 --> 0:11:29.800 led to the ouster of co founder Sam Aldman, only 0:11:29.840 --> 0:11:32.800 for Microsoft to. 0:11:31.960 --> 0:11:32.480 Bring him on. 0:11:33.120 --> 0:11:37.400 Microsoft CEO Satya Nadella joined Bloomberg's Emily Chang to discuss 0:11:37.600 --> 0:11:41.160 the hiring of Sam Maltman as OpenAI investors push for 0:11:41.160 --> 0:11:44.680 Altman to come back. They also spoke about Microsoft's partnership 0:11:44.720 --> 0:11:48.080 with the company and its goals for artificial intelligence. Let's 0:11:48.080 --> 0:11:50.000 bring you that conversation now, Satya. 0:11:50.160 --> 0:11:54.920 Obviously, it's been a very fast moving and dramatic last 0:11:55.120 --> 0:11:57.520 of seventy two to forty eight hours, and I want 0:11:57.520 --> 0:12:00.320 to start with the state of play. Where are we now? 0:12:00.360 --> 0:12:03.360 Open ai says it's hired a new CEO. We're reporting 0:12:03.360 --> 0:12:06.560 their efforts to get Sam Altman back. Tell us where 0:12:06.600 --> 0:12:07.200 things stand. 0:12:08.320 --> 0:12:10.760 Well, first of all, having it's great to be with you, 0:12:10.760 --> 0:12:14.600 you know, on Friday morning, we were very excited, committed 0:12:14.640 --> 0:12:18.320 and confident in our innovation roadmap to bring this next 0:12:18.400 --> 0:12:20.760 generation of AI to our customers. 0:12:21.880 --> 0:12:24.840 And we feel fantastic and capable of doing that. 0:12:25.679 --> 0:12:27.960 And we were partnered with open ai, and we were 0:12:28.000 --> 0:12:30.960 partnered with Sam and that's exactly where I am on 0:12:31.200 --> 0:12:34.600 Monday afternoon, if you will, because we think that we can. 0:12:34.880 --> 0:12:36.760 You know, we are leading in this next generation of 0:12:36.800 --> 0:12:40.319 AI technology. We continue to be committed to open ai, 0:12:40.480 --> 0:12:43.200 and we continue to be committed to Sam and Greg 0:12:43.240 --> 0:12:45.800 and the team in respect you where they are. And 0:12:45.840 --> 0:12:49.000 you know, I think about Sam has chosen multiple times 0:12:49.040 --> 0:12:52.160 now to work with us, and that's fantastic to see. 0:12:52.160 --> 0:12:55.080 And I think the real thing is that the capability 0:12:55.120 --> 0:12:58.640 that Microsoft has across the tech stack is what attracts 0:12:59.320 --> 0:13:02.280 great people like Sam, you know, and people like Sam, 0:13:02.320 --> 0:13:05.120 and you know, innovators like Sam when it comes to AI, 0:13:05.240 --> 0:13:06.880 to come to us, and we are thrilled about it. 0:13:08.080 --> 0:13:13.960 You incredibly quickly hired Sam as well as Greg. We 0:13:14.080 --> 0:13:18.160 are hearing that Sam wants to return. Investors want him 0:13:18.360 --> 0:13:21.760 to return to open ai. How would you feel about that? 0:13:23.000 --> 0:13:26.320 Yeah, as I said, we really want to partner with 0:13:26.360 --> 0:13:28.440 open ai and we want to partner with Sam. And 0:13:28.480 --> 0:13:31.320 so in respect you of where Sam is, he's working 0:13:31.360 --> 0:13:34.120 with Microsoft. And that is the case on Friday, and 0:13:34.160 --> 0:13:37.000 that'll be that's the case today and we will I 0:13:37.080 --> 0:13:39.080 absolutely believe that that will be the case tomorrow. 0:13:40.200 --> 0:13:44.200 So what are the conversations you've had with open AI's 0:13:44.360 --> 0:13:49.000 current board from their perspective, where do things stand? And 0:13:49.080 --> 0:13:52.720 have you talked with Emmett Sheer, the new interim CEO. 0:13:54.160 --> 0:13:56.760 Yeah, I've had conversations with Emmett, and again it's the 0:13:56.800 --> 0:14:00.200 same thing. There's no real difference there from where we 0:14:00.200 --> 0:14:02.640 were when we were working with Mira and she was 0:14:02.679 --> 0:14:06.520 interim CEO, when Sam was CEO and Emmett So my 0:14:06.600 --> 0:14:08.920 message to them Emmett is very clear, which is, hey, look, 0:14:08.960 --> 0:14:11.280 we remain very very committed to open ai and it's 0:14:11.400 --> 0:14:14.240 mission and it's sort of roadmap and they can count 0:14:14.240 --> 0:14:17.160 on us. And then, as I said, we also are 0:14:17.240 --> 0:14:19.400 very committed to Sam and Greg and team that want 0:14:19.440 --> 0:14:22.000 to join us. If they're not at open ai or 0:14:22.040 --> 0:14:24.760 anyone else who's at open ai wants to go somewhere else, 0:14:24.760 --> 0:14:26.720 we want them to come to Microsoft and continue to 0:14:26.760 --> 0:14:29.520 work here and win partnership with open ai. 0:14:30.720 --> 0:14:34.520 To your knowledge, why was Sam fired and to your 0:14:34.640 --> 0:14:38.200 knowledge was he involved in any wrongdoing? Has the board 0:14:38.320 --> 0:14:40.160 given you a reason? 0:14:42.520 --> 0:14:44.800 As far as I'm concerned, you know, we were, as 0:14:44.840 --> 0:14:46.920 I said, we were very confident in Sam and his 0:14:47.040 --> 0:14:47.720 leadership team. 0:14:48.280 --> 0:14:49.880 I've not been told about anything. 0:14:50.200 --> 0:14:53.920 You know, they published internally at open ai that there 0:14:54.000 --> 0:14:56.960 is not that the board has not talked about anything 0:14:56.960 --> 0:14:59.760 that Sam did other than some breakdown in communications. And 0:15:00.200 --> 0:15:02.480 you know, I'm not directly and was told by anyone 0:15:02.560 --> 0:15:05.440 from their board about any issues. And so therefore I 0:15:05.480 --> 0:15:09.680 remain confident in Sam and his leadership and capability, and 0:15:09.720 --> 0:15:12.479 that's why you know, we want to welcome him to Microsoft. 0:15:13.640 --> 0:15:17.080 Now, we understand that to support a return of Sam 0:15:17.080 --> 0:15:20.240 mom and too open Ai, Microsoft wants some changes to 0:15:20.280 --> 0:15:23.960 the board, to governance, to its overall contract with open ai, 0:15:24.200 --> 0:15:28.200 so something like this never happens. Again, what specifically are 0:15:28.200 --> 0:15:31.040 you looking for, for example, would you want to board 0:15:31.120 --> 0:15:32.640 see and if not, what else? 0:15:33.760 --> 0:15:35.440 Yeah, I mean I think we definitely will want some 0:15:35.480 --> 0:15:37.840 governance changes. So then you know, you know. 0:15:37.840 --> 0:15:41.280 Surprises are bad and we just want to make sure 0:15:41.360 --> 0:15:44.320 that things are done in a way that will allow. 0:15:44.160 --> 0:15:46.920 Us to continue to partner. Well that's about it, right. 0:15:46.960 --> 0:15:50.040 You know, this idea that somehow, you know, suddenly changes 0:15:50.080 --> 0:15:53.000 happen without being you know, in the loop is not good. 0:15:53.640 --> 0:15:56.480 And we will definitely ensure that some of the changes 0:15:56.480 --> 0:15:59.360 that are needed to happen and we continue to be 0:15:59.440 --> 0:16:02.480 able to go along on the partnership with open AI. 0:16:03.520 --> 0:16:06.360 So how are you envisioning this role with the sort 0:16:06.400 --> 0:16:08.800 of you know, advanced AI team that Sam and Greg 0:16:08.800 --> 0:16:12.040 would be joining and leading. Can you explain that? And 0:16:12.120 --> 0:16:15.920 are they actually Microsoft employees right now? Like who do 0:16:15.960 --> 0:16:16.520 they work for? 0:16:17.800 --> 0:16:21.080 Yeah, so they're all in the process of joining, and yes, 0:16:21.160 --> 0:16:23.560 I mean the thing is that you know, we have 0:16:23.640 --> 0:16:26.320 a ton of AI expertise in this company. You know, 0:16:26.360 --> 0:16:29.720 in fact, at Aurignite conference last week, we talked about 0:16:29.760 --> 0:16:32.480 all of the great work open aies doing and on 0:16:32.600 --> 0:16:36.080 Azure and all the models and tools that we built 0:16:36.080 --> 0:16:38.400 around it. And we also talked about all the open 0:16:38.400 --> 0:16:41.560 source models that are on Azure from you know, Lama 0:16:41.640 --> 0:16:46.000 and miss Stral and jas and everything you know. And 0:16:46.040 --> 0:16:48.040 then also you know, in fact, not only are we 0:16:48.160 --> 0:16:51.760 leaders in llms in partnership with open ai, but we're 0:16:51.760 --> 0:16:54.800 also leaders in SLMs or the small language models with 0:16:54.880 --> 0:16:57.000 five and we talked about that, which is all developed 0:16:57.000 --> 0:17:00.320 by Microsoft Research. So what we am excited about is 0:17:00.360 --> 0:17:02.840 sort of creating another team that's really going to have 0:17:02.960 --> 0:17:05.960 high ambition on leading edge advanced day I work that 0:17:06.080 --> 0:17:07.720 Sam and Greg are excited about. 0:17:08.000 --> 0:17:09.920 This is something that you know, we've talked a lot 0:17:09.960 --> 0:17:10.640 about with them. 0:17:10.680 --> 0:17:13.239 You know, what happens in twenty five, what happens in 0:17:13.320 --> 0:17:16.240 thirty What do we do to advance both the system 0:17:16.359 --> 0:17:17.840 side the science side. 0:17:18.720 --> 0:17:20.719 And that's the thing that we will be pushing on. 0:17:21.760 --> 0:17:24.520 Now. Many folks I'm speaking with don't see Sam as 0:17:24.520 --> 0:17:27.640 a sort of big tech company guy. He has all 0:17:27.640 --> 0:17:30.800 of these side product projects that you know, we've already 0:17:30.840 --> 0:17:33.159 heard about, we've reported on new projects. Would he be 0:17:33.200 --> 0:17:38.960 able to pursue these side projects while being employed by Microsoft? 0:17:39.520 --> 0:17:42.760 Yeah, I'm sure you know, Like you know, Sam has 0:17:42.800 --> 0:17:46.000 got broad interests and broad investments and so on, and 0:17:46.000 --> 0:17:48.560 we'll definitely, you know, work through the governance aspects of it. 0:17:49.080 --> 0:17:51.520 But most importantly, I think you would want to only 0:17:51.560 --> 0:17:54.120 work at Microsoft if he wants to spend his full 0:17:54.160 --> 0:17:57.239 time time on really pursuing the mission, just like how 0:17:57.280 --> 0:17:58.680 we were spending his time on open AI. 0:17:58.840 --> 0:18:01.280 And so that's kind of the idea. 0:18:01.080 --> 0:18:05.560 Behind having him lead this advanced research team around AI 0:18:05.840 --> 0:18:06.959 with Greg and others. 0:18:07.320 --> 0:18:09.560 And you know, that's an exciting thing for us to 0:18:09.600 --> 0:18:10.159 look forward to. 0:18:11.680 --> 0:18:15.479 I'm curious just your reaction to you know, the last 0:18:15.720 --> 0:18:19.119 three days of events. Are you now more concerned than 0:18:19.160 --> 0:18:24.040 ever about AI safety, given we've seen clearly how fragile 0:18:24.320 --> 0:18:25.520 these institutions are. 0:18:27.240 --> 0:18:28.000 It's a great point. 0:18:28.080 --> 0:18:30.800 I mean, the thing that I think, in some sense, 0:18:31.359 --> 0:18:35.000 I've always felt that we should think about the unintended 0:18:35.040 --> 0:18:38.960 consequences of any great advances in technology from day one, 0:18:39.160 --> 0:18:41.879 versus dealing with them later. So in some sense I 0:18:42.080 --> 0:18:47.600 welcome this dialogue, if you will, of safety and safety first, 0:18:47.720 --> 0:18:51.480 even in technology and technological development, right, I mean, that's 0:18:51.520 --> 0:18:54.240 I think in some sense it should be celebrated that 0:18:54.320 --> 0:18:56.600 we as a tech industry have gotten to a place 0:18:57.320 --> 0:18:59.520 where we don't think of this as a tradeoff, but 0:18:59.560 --> 0:19:02.160 we think about this as two considerations that are. 0:19:02.080 --> 0:19:03.200 Both first class. Right. 0:19:03.200 --> 0:19:06.399 One is how do we build technology so that everybody 0:19:06.400 --> 0:19:10.000 in the world can have a doctor, an X that 0:19:10.080 --> 0:19:12.960 they can reach, or a tutor or you know, a 0:19:13.160 --> 0:19:16.639 rural farmer in India has more agency because of technology 0:19:16.680 --> 0:19:18.359 that was developed in the West Coast of the United 0:19:18.400 --> 0:19:21.119 States a few months earlier. These are unbelievable things that 0:19:21.240 --> 0:19:24.520 democratize access on one side, but on the other side, 0:19:24.560 --> 0:19:27.600 being grounded on the here and now harms right, whether 0:19:27.640 --> 0:19:32.720 it's election interference or deep fakes or bias or bioterrorism 0:19:32.800 --> 0:19:35.399 and having the guardrails against it or even some of 0:19:35.440 --> 0:19:38.399 the you know, AI take off existential risks and the 0:19:38.480 --> 0:19:41.240 alignment research that is required. So I think that there 0:19:41.280 --> 0:19:45.479 is a real robust dialogue that's happening, which is and 0:19:45.560 --> 0:19:48.160 real work. Like when I think about Microsoft, we have done, 0:19:48.280 --> 0:19:51.960 in fact, some of the biggest most work around AI alignment, 0:19:52.080 --> 0:19:55.320 AI safety guardrails. So for example, even the open source 0:19:55.359 --> 0:19:58.880 models we launched last week all have benefit from all 0:19:58.920 --> 0:20:02.600 the guardrail work we did around open AYE models. 0:20:03.720 --> 0:20:06.520 So throughout the reporting process, we've heard, you know, concerns 0:20:06.520 --> 0:20:09.240 about potential regulatory issues and of course the power that 0:20:09.280 --> 0:20:12.600 Microsoft already has, the power that Microsoft has in AI. 0:20:12.720 --> 0:20:14.520 Have you, on your end work through all the potential 0:20:14.600 --> 0:20:16.879 legal issues at play here? I mean, I just spoke 0:20:16.880 --> 0:20:19.800 to one investor who said, you know, they're considering suing 0:20:19.920 --> 0:20:23.560 open ai, Like, you know, there's a lot of things 0:20:23.560 --> 0:20:26.199 that have yet it seems to be figured out. And 0:20:26.240 --> 0:20:29.880 do you know what Microsoft's legal liability is and open 0:20:29.920 --> 0:20:33.680 AI's legal liability is given your significant investment. 0:20:33.200 --> 0:20:39.120 There, Yeah, Look, I'm I'm most focused on and most 0:20:39.200 --> 0:20:40.439 excited about our. 0:20:40.320 --> 0:20:43.080 Ability to continue to innovate. 0:20:43.160 --> 0:20:47.280 Emily I mean, I let the lawyers sort of figured 0:20:47.280 --> 0:20:50.320 out what liabilities are. But I think we have all 0:20:50.359 --> 0:20:54.080 the capability, all the IP and all the things that 0:20:54.119 --> 0:20:57.280 we need in order to continue to essentially control our 0:20:57.320 --> 0:21:00.560 destiny here so that we can continue to innovate on 0:21:00.640 --> 0:21:03.400 behalf of our customers. That's what matters, That's what makes 0:21:03.440 --> 0:21:07.080 Microsoft Microsoft, and we'll continue to do what we need 0:21:07.119 --> 0:21:07.360 to do. 0:21:08.119 --> 0:21:11.359 Okay, so quick, last question, this is today. Who's going 0:21:11.440 --> 0:21:13.880 to be CEO of open Ai Tomorrow? You tell me. 0:21:15.920 --> 0:21:18.119 I will leave it to open Ai and it's bored. 0:21:18.359 --> 0:21:21.640 Microsoft Ceosatia Nadella says, no matter what happens, open Ai 0:21:21.800 --> 0:21:23.280 needs governance changes. 0:21:23.440 --> 0:21:27.600 Microsoft shares clothes at a record high yesterday. 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