Microsoft Hires OpenAI Co-Founder Altman; Hostage Talks Progress in Israel-Hamas War

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. 0:00:07.720 --> 0:00:10.560 Karen, we begin with a wild weekend in the world 0:00:10.560 --> 0:00:14.080 of artificial intelligence. Less than seventy two hours after he 0:00:14.200 --> 0:00:17.640 was ousted at OpenAI, the company behind chat GPT, which 0:00:17.680 --> 0:00:21.080 he helped to create, Sam Aldman has now been hired 0:00:21.120 --> 0:00:24.440 by Microsoft. He's going to lead Microsoft's new in house 0:00:24.600 --> 0:00:29.000 artificial intelligence team. Bloomberg Original's host A Zimazhar, author of 0:00:29.040 --> 0:00:33.560 AI newsletter Exponential View, says Microsoft CEO Satya Nadella didn't 0:00:33.560 --> 0:00:35.159 waste time nabbing old men. 0:00:35.479 --> 0:00:40.440 Satya has moved very quickly to shore up the commitments 0:00:40.640 --> 0:00:43.600 he has made to his customers. Microsoft has made a 0:00:43.600 --> 0:00:46.600 big bet on open ai, and the technology was now 0:00:46.880 --> 0:00:51.120 powering so many Microsoft products, including their most premium office 0:00:51.240 --> 0:00:54.640 Suite through the co pilot that was sort of part 0:00:55.120 --> 0:00:57.880 supported by OpenAI. So I think this is a very 0:00:57.960 --> 0:01:01.600 very rapid move on his part to ensure that Microsoft 0:01:01.640 --> 0:01:05.440 can continue to be a leader in developing and deploying 0:01:05.480 --> 0:01:06.920 AI systems for enceerprises. 0:01:06.959 --> 0:01:10.640 Bloomberg Original's host A zim Oshar says Greg Brockman and 0:01:10.880 --> 0:01:13.720 open ai co founder who also left, is going to 0:01:13.720 --> 0:01:16.200 be joining Altman at Microsoft as well, and right now 0:01:16.240 --> 0:01:18.440 shares of Microsoft are hire by two and a half 0:01:18.520 --> 0:01:19.720 percent in early trading. 0:01:20.160 --> 0:01:22.559 Well, Nathan Altman was fired on Friday after the board 0:01:22.560 --> 0:01:25.280 of open Ai said they lost confidence in him as 0:01:25.280 --> 0:01:28.600 a leader, and Bloomberg's Rachel Metz says open Ai offered 0:01:28.720 --> 0:01:31.640 few clues as to the reasons for the departure. 0:01:31.959 --> 0:01:37.200 Open ai leadership has put out memos internally at the company, 0:01:37.680 --> 0:01:39.759 saying that the board hasn't said that there was any 0:01:39.959 --> 0:01:43.120 quote mal season or anything like that, so it's not 0:01:43.240 --> 0:01:46.920 totally clear what the board was initially even accusing him 0:01:46.959 --> 0:01:48.520 of doing when it got rid of him. 0:01:48.600 --> 0:01:52.040 And Bloomberg's Rachel Metz says open AI's board hired former 0:01:52.120 --> 0:01:56.200 Twitch chief Emitted Sheer as chief executive. Microsoft CEO Sunny 0:01:56.160 --> 0:01:58.840 and Adela said his company looks forward to working with 0:01:58.920 --> 0:02:02.320 Sheer and remains admitted to the open Ai relationship. 0:02:02.520 --> 0:02:04.600 Well Karen, Another big name in tech is in the 0:02:04.640 --> 0:02:08.160 news this morning for a very different reason. Elon Musk 0:02:08.400 --> 0:02:12.239 is defending himself after an anti Semitic furor has deepened. 0:02:12.320 --> 0:02:14.919 More on that this morning from Bloomberg's John Tucker, John. 0:02:14.800 --> 0:02:17.280 And Nathan Musk posted on x that he is not 0:02:17.400 --> 0:02:20.320 anti Semitic and he wishes only the best for humanity. 0:02:20.720 --> 0:02:23.640 A backlash erupted last week after the head of Tesla 0:02:23.680 --> 0:02:26.040 and AX agreed with a post that said Jewish people 0:02:26.080 --> 0:02:30.000 hold a dialectical hatred of white people advertised there's like 0:02:30.120 --> 0:02:32.520 Apple and Walt Disney pulled away from Max. What we 0:02:32.680 --> 0:02:35.800 used to know is Twitter. The Financial Times Meantime reports 0:02:35.800 --> 0:02:40.480 that advertising executives privately urged X CEO Linda Yakarino over 0:02:40.480 --> 0:02:43.720 the weekend to resign in order to save her reputation. 0:02:44.320 --> 0:02:46.960 A Musk is a track record of promoting hate speech, 0:02:47.080 --> 0:02:50.440 but not everyone is abandoned Musk. Hedge fund manager Bill 0:02:50.480 --> 0:02:53.960 Ackman was among those who leapt a Musk's defense. I'm 0:02:54.040 --> 0:02:55.720 John Tucker, Bloomberg. 0:02:55.280 --> 0:02:57.760 Radio, Right, John, Thank you now. To the latest. In 0:02:57.800 --> 0:02:59.840 the Middle East, the White House says a deal is 0:03:00.040 --> 0:03:02.760 as close as it's ever been for Hamas to release 0:03:02.800 --> 0:03:07.040 hostages in exchange for Israel foreing Palestinian women and children 0:03:07.080 --> 0:03:10.880 from its prisons. Deputy National Security Advisor John Finer says 0:03:10.919 --> 0:03:13.840 the agreement could involve a multi day pause in the 0:03:13.840 --> 0:03:14.760 fighting in Gaza. 0:03:15.160 --> 0:03:18.040 That would first and foremost enable the hostages to actually 0:03:18.080 --> 0:03:21.079 be released safely, but that would also make it much 0:03:21.120 --> 0:03:24.919 easier to both bring humanitarian assistance into Gaza and also 0:03:24.960 --> 0:03:26.120 distribute that assistance. 0:03:26.400 --> 0:03:28.880 John Finer at the White House spoke on ABC's This 0:03:28.919 --> 0:03:32.680 Week Heard Sundays on Bloomberg Radio. Israel also released video 0:03:32.720 --> 0:03:35.960 of a tunnel chef near the Alshifa Hospital in Gaza City. 0:03:36.280 --> 0:03:39.800 Rear Admiral and Daniel Hungary with the Israel Defense Forces 0:03:39.840 --> 0:03:43.040 says it proves Hamas used the facility as a command center. 0:03:43.240 --> 0:03:48.280 Hamas was hiding and murdering our hostages in Shifa Hospital. 0:03:49.000 --> 0:03:53.040 Hamas was building terror tunnels underneath Shifa Hospital. 0:03:53.640 --> 0:03:56.880 Israel's government also says around back who he wearbules and 0:03:57.000 --> 0:04:00.240 Yemen hijacked a cargo ship in the Red Sea, being 0:04:00.320 --> 0:04:03.000 a key global shipping route elsewhere globally. 0:04:03.000 --> 0:04:07.200 In Argentina, Karen libertarian outsider Javier Malay will become the 0:04:07.240 --> 0:04:11.040 country's new president. Malay's promising a radical shakeup to fix 0:04:11.160 --> 0:04:14.760 decades of policy mismanagement. Speaking to crowds in Buenos Aires, 0:04:14.800 --> 0:04:18.960 the president to like to stress the need for immediate action, promise. 0:04:19.040 --> 0:04:23.200 The situation in Argentina is critical. The changes that this 0:04:23.320 --> 0:04:27.320 country needs are drastic. There's no room for gradual measure, 0:04:28.160 --> 0:04:31.440 and there's no way to say it. Long lived freedom. 0:04:31.600 --> 0:04:34.520 Javier Malay spoke there through an interpreter and also highlighted 0:04:34.640 --> 0:04:39.160 Argentina's critical economic condition in that address to supporters. Markets 0:04:39.160 --> 0:04:41.920 in Argentina are close today for public holiday. 0:04:42.440 --> 0:04:45.520 Well Nathan, the world mourning the loss of former First 0:04:45.600 --> 0:04:49.200 Lady Rosalind Carter, and Bloomberg's Ed Baxter has more on 0:04:49.240 --> 0:04:52.120 the passing of the wife of former President Jimmy Carter. 0:04:52.600 --> 0:04:55.880 Rosalind Carter has been a tireless humanitarian both during the 0:04:55.920 --> 0:04:59.720 administration and then after, also a mental health advocate of 0:04:59.720 --> 0:05:02.720 the First Order. Two years ago, she was asked what 0:05:02.760 --> 0:05:06.400 makes a happy marriage. She says, many different things, but 0:05:06.440 --> 0:05:08.839 trying to make each other happy every day and do 0:05:08.960 --> 0:05:13.520 things together. We're always looking to do things for fine 0:05:13.640 --> 0:05:16.760 things we can do together. She has been at hospice care. 0:05:17.400 --> 0:05:19.120 At Baxter Bloomberg Radio. 0:05:19.040 --> 0:05:21.360 All right, Ed, thank you, Let's get you caught up 0:05:21.400 --> 0:05:24.320 on some corporate news this morning. We're watching shares of 0:05:24.480 --> 0:05:27.599 bay Or. They are plunging more than twenty percent. The 0:05:27.760 --> 0:05:31.400 German pharma and agriculture company stop the main study of 0:05:31.440 --> 0:05:34.760 its top experimental medicine due to a lack of efficacy. 0:05:35.040 --> 0:05:37.960 Beyer also lost a key US trial against its we'd 0:05:38.080 --> 0:05:38.839 killer roundup. 0:05:39.600 --> 0:05:42.799 And Nathan chares at Julius Bear. They are down about 0:05:42.800 --> 0:05:45.640 ten and a half percent. The Zurich based bank warning 0:05:45.720 --> 0:05:48.560 it's full of your profit will probably decline. The firm 0:05:48.600 --> 0:05:50.200 says provisions for bad loans. 0:05:50.440 --> 0:05:54.240 Jumped futures on Wall Street are higher. SMP futures up 0:05:54.279 --> 0:05:57.120 a tenth of a percent, as our down futures. Nasdaq 0:05:57.200 --> 0:06:00.840 futures up two tenths of one percent. Treasury yield right 0:06:00.839 --> 0:06:04.760 now four point four to four percent. This is Bloomberg, 0:06:08.360 --> 0:06:08.760 all right. 0:06:08.680 --> 0:06:10.240 Nathan, Thanks, It's time now for a look at some 0:06:10.320 --> 0:06:12.640 of the other stories making news around the world. For that, 0:06:12.720 --> 0:06:15.320 we're joined by Bloomberg's Amy Morris. See me, Good morning, 0:06:15.720 --> 0:06:16.640 Good morning, Karen. 0:06:16.680 --> 0:06:20.560 Former President Donald Trump and Texas Governor Greg Abbott served 0:06:20.600 --> 0:06:24.080 Thanksgiving meals yesterday and an airport hangar near the southern 0:06:24.080 --> 0:06:27.039 border to nearly two hundred border officials who will be 0:06:27.080 --> 0:06:31.440 stationed on the border over Thanksgiving. Afterwards, the governor endorsed 0:06:31.480 --> 0:06:33.880 Trump's twenty twenty four bid for the White House. 0:06:33.960 --> 0:06:39.919 I'm here today to officially proclaim my endorsement for Donald J. 0:06:40.080 --> 0:06:43.640 Trump to be President of the United States of America again. 0:06:43.720 --> 0:06:46.840 Abbot praising Trump for his border policies and battle to 0:06:46.920 --> 0:06:50.120 New York Representative George Santos face is another resolution to 0:06:50.160 --> 0:06:53.800 expel him from the House after the Thanksgiving holiday, Ethics 0:06:53.800 --> 0:06:57.760 Committee member and fellow New York Republican Andrew Garbarino tells 0:06:57.839 --> 0:07:01.279 ABC News he was shocked by what the investigation uncovered. 0:07:01.360 --> 0:07:04.400 He took every opportunity of available to him as a 0:07:04.440 --> 0:07:09.200 candidate to really gain the system offer his personal benefit. 0:07:09.560 --> 0:07:11.280 I wish I knew it was gonna be bad. I 0:07:11.320 --> 0:07:12.520 didn't think it was going to be this bad. 0:07:12.600 --> 0:07:15.880 The House Ethics Committee released its report into what investigators 0:07:15.920 --> 0:07:19.720 described as quote a complex web of unlawful activity involving 0:07:19.760 --> 0:07:24.480 Representative Santo's campaign, personal and business finances. The major Los 0:07:24.520 --> 0:07:27.480 Angeles roadway damaged by arson more than a week ago, 0:07:27.720 --> 0:07:31.920 reopened way ahead of schedule yesterday evening. California Governor Gavin 0:07:31.960 --> 0:07:34.760 Newsom says the iten will be fully operational for this 0:07:34.920 --> 0:07:37.720 morning's commute, but the work continues. 0:07:37.400 --> 0:07:40.840 When well we see those permanent fixes secured. That will 0:07:40.840 --> 0:07:44.080 be over the course of many weeks, maybe a few months, 0:07:44.120 --> 0:07:48.640 but that won't significantly impact the commute or impact the 0:07:48.680 --> 0:07:51.440 five lanes that are now open in both directions. 0:07:51.440 --> 0:07:53.480 A Lease are searching for a suspect in that fire. 0:07:53.520 --> 0:07:56.480 They're asking for the public's help. Airports across the country 0:07:56.520 --> 0:08:00.560 are bracing for record Thanksgiving travel this week. TSA expecting 0:08:00.600 --> 0:08:03.800 to screen thirty million passengers over the holiday. Thomas grab 0:08:04.000 --> 0:08:06.480 is in Detroit. He's flying to New Orleans, but he's 0:08:06.480 --> 0:08:09.480 not expecting big crowds at the airport while he's there. 0:08:09.680 --> 0:08:12.680 I'm not expecting delays because I'm leaving on Thanksgiving Day, 0:08:12.960 --> 0:08:14.880 so a lot of people try to leave before. 0:08:16.360 --> 0:08:19.480 Sunday after Thanksgiving is projected to be the busiest day, 0:08:19.480 --> 0:08:22.120 with an estimated two point nine million passengers. Take into 0:08:22.160 --> 0:08:24.680 the skies. Global news twenty four hours a day and 0:08:24.720 --> 0:08:26.400 whenever you want it with Bloomberg News. 0:08:26.400 --> 0:08:26.679 Now. 0:08:26.920 --> 0:08:29.120 I'm Amy Morrison. This is Bloomberg Karen. 0:08:29.480 --> 0:08:31.440 All right, Amy, thank you well. We do bring you 0:08:31.560 --> 0:08:34.440 news throughout the day right here on Bloomberg Radio. But now, 0:08:34.480 --> 0:08:36.440 as Amy said, you can get the latest news on 0:08:36.520 --> 0:08:41.440 demand whenever you wanted. Subscribe to Bloomberg News Now to 0:08:41.480 --> 0:08:43.480 get the latest headlines at the click of a button. 0:08:43.760 --> 0:08:47.000 Get informed on your schedule. You can listen and subscribe 0:08:47.040 --> 0:08:50.600 to Bloomberg News Now on the Bloomberg Business app, Bloomberg 0:08:50.640 --> 0:08:54.000 dot Com plus apples, Spotify, and anywhere else you get 0:08:54.000 --> 0:09:01.520 your podcasts. Time now for the Bloomberg Sports Update. Here's 0:09:01.559 --> 0:09:03.640 John Stashauer, John Karen. 0:09:03.720 --> 0:09:05.640 No one could have expected this late in the NFL 0:09:05.679 --> 0:09:08.439 season for the Detroit Lions to have the second best 0:09:08.440 --> 0:09:10.440 record in the league. They are now eight and two. 0:09:10.480 --> 0:09:13.280 It's their best start to season since nineteen sixty two. 0:09:13.679 --> 0:09:16.520 They come back in Detroit. The Lions trailed the Bears 0:09:16.520 --> 0:09:19.319 by twelve points with three minutes left. Lions came back 0:09:19.320 --> 0:09:21.640 to win thirty one twenty sixtyes fight an off day 0:09:21.640 --> 0:09:24.400 for their quarterback Jared goff k through three interceptions. The 0:09:24.400 --> 0:09:27.680 Cowboys are seven to three, a point defferential of plus 0:09:27.720 --> 0:09:30.080 one twenty seven, tied with Baltimore for the best in 0:09:30.080 --> 0:09:33.160 the league. Cowboys won easily at Carolina thirty three to ten, 0:09:33.240 --> 0:09:36.120 forty nine ers, also seven to three. Brock perty twenty 0:09:36.160 --> 0:09:38.480 one of twenty five, three hundred and thirty five yards 0:09:38.679 --> 0:09:41.480 three touchdowns, including the seventy six yard to Brandon Ayu. 0:09:41.880 --> 0:09:44.600 Forty nine Ers beat the Bucks twenty seven to fourteen. 0:09:44.679 --> 0:09:47.679 The game last night won by Denver a Russell Wilson 0:09:47.720 --> 0:09:50.400 touchdown pass to Courtland Sutton with a minute ago. The 0:09:50.480 --> 0:09:53.160 Broncos fourth winning a row twenty one to twenty over 0:09:53.160 --> 0:09:56.040 the Vikings, who saw their five game winning streak come 0:09:56.080 --> 0:09:58.080 to an end. Good one tonight. It's the eight and 0:09:58.160 --> 0:10:00.160 one Eagles and the seven and two Chiefs. It's in 0:10:00.280 --> 0:10:04.760 Kansas City. It's a Super Bowl rematch. Syracuse has fired 0:10:04.760 --> 0:10:08.360 it's football coach. Dino Babers. Had the job for eight years, 0:10:08.480 --> 0:10:12.440 went forty one and fifty five. So add Syracuse to 0:10:12.480 --> 0:10:14.480 the list of schools we'll be looking for a coach 0:10:14.520 --> 0:10:18.320 for next year. Aaron Nola has already pitched nine seasons 0:10:18.320 --> 0:10:20.360 for the Phillies and he is stained put. He was 0:10:20.360 --> 0:10:22.560 a free agent but re upped with the phil seven years, 0:10:22.600 --> 0:10:25.600 one hundred and seventy two million. The f one raised 0:10:25.640 --> 0:10:28.040 in Las Vegas won by Max vers Stapp, and he's 0:10:28.040 --> 0:10:32.079 already won the season championship. John stash Awer Bloomberg Sports. 0:10:32.160 --> 0:10:35.480 Karen all Right, John Stashauer, thank you well. Coming up 0:10:35.480 --> 0:10:38.280 on Bloomberg Daybreak. We are going to be speaking with 0:10:38.320 --> 0:10:43.160 our own Creedy Gupta. We'll be discussing that changes at 0:10:43.160 --> 0:10:46.760 open Ai and of course Sam Altman going over to 0:10:46.840 --> 0:10:49.439 Microsoft again. That's coming up with Crety Gupta, and then 0:10:49.480 --> 0:10:52.000 we'll get the latest on the war in the Middle East. 0:10:52.080 --> 0:10:56.319 We'll be joined by Israeli government spokesman Alon Levy ahead 0:10:56.320 --> 0:10:59.040 of those conversations, though, futures on the rise, with SNP 0:10:59.240 --> 0:11:01.760 futures up a tenth of ve percent, up about six 0:11:01.800 --> 0:11:05.000 points this morning. And this is Bloomberg. 0:11:08.000 --> 0:11:11.000 From coast to coast, from New York to San Francisco, 0:11:11.320 --> 0:11:15.960 Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg 0:11:16.000 --> 0:11:20.160 Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. 0:11:21.280 --> 0:11:21.800 Good morning. 0:11:21.800 --> 0:11:24.960 I'm Nathan Hager on the end of what could be 0:11:25.000 --> 0:11:27.880 the end of a head spinning few days. Just keeping 0:11:27.880 --> 0:11:31.160 on top of what's been happening at OpenAI. It started 0:11:31.200 --> 0:11:34.920 with the sudden announcement on Friday that CEO Sam Altman 0:11:35.120 --> 0:11:38.280 was being ousted, then a tug of war between open 0:11:38.320 --> 0:11:41.760 AI's board and its biggest investors to try to get 0:11:41.800 --> 0:11:44.760 Altman back. Now the word this morning that Sam Altman 0:11:44.880 --> 0:11:49.600 and OpenAI founder Greg Brockman have landed at Microsoft, one 0:11:49.640 --> 0:11:53.680 of those biggest open Ai investors, to run Microsoft's in 0:11:53.760 --> 0:11:56.319 house AI team. Let's get more on all this now 0:11:56.320 --> 0:11:58.520 we're joined by Bloomberg's Critty Gupta. Did I sum it 0:11:58.600 --> 0:11:59.160 up well enough? 0:11:59.200 --> 0:11:59.360 There? 0:11:59.440 --> 0:11:59.760 Critty? 0:12:00.120 --> 0:12:00.520 You did? 0:12:00.559 --> 0:12:02.800 And yet there's still so much more to pack. I mean, 0:12:02.840 --> 0:12:04.480 this saga is so fascinating. 0:12:04.559 --> 0:12:04.880 Nathan. 0:12:05.160 --> 0:12:08.000 You mentioned Microsoft and Opening I clearly have a close relationship. 0:12:08.160 --> 0:12:10.360 Let's put some numbers on it. Microsoft has a forty 0:12:10.480 --> 0:12:13.320 nine percent stake in open Ai. But now I guess 0:12:13.360 --> 0:12:15.439 the question is, what do you do with that steak? 0:12:15.520 --> 0:12:17.920 If Sam Altmant and I believe it's been reported that 0:12:18.000 --> 0:12:21.439 half of the company's employees have followed him, are now 0:12:21.480 --> 0:12:25.160 going to be absorbed into Microsoft itself. But Nathan, I 0:12:25.160 --> 0:12:27.520 think we shop at the market moves here MSFT, your 0:12:27.559 --> 0:12:30.320 ticker hired by two point six percent off that news. 0:12:30.720 --> 0:12:32.600 Macro read through as well if you don't care about 0:12:32.640 --> 0:12:36.520 Microsoft specifically, Nasdaq futures popped on the news when they 0:12:36.559 --> 0:12:39.760 broke at about eight am London time, So again something 0:12:40.000 --> 0:12:43.000 to watch very closely, but also read through into alphabet 0:12:43.080 --> 0:12:47.120 Google shares goog down about one percent. Because now we 0:12:47.160 --> 0:12:50.839 are in direct competition with Alphabet's offering of their own 0:12:50.920 --> 0:12:54.000 AI platform, Deep Mind. So you are starting to see 0:12:54.000 --> 0:12:58.720 this become a true kind of competitive take between Microsoft 0:12:58.760 --> 0:13:00.280 and Alphabet when it comes to the AI. 0:13:00.600 --> 0:13:03.800 Even more of an arms race potentially when it comes 0:13:03.880 --> 0:13:08.440 to artificial intelligence. And what does it say now when 0:13:08.480 --> 0:13:11.319 you have the leadership of open ai now in charge 0:13:11.320 --> 0:13:13.840 of Microsoft's in house team, and at least at the moment, 0:13:13.920 --> 0:13:17.360 Microsoft is saying they still want to have that relationship 0:13:17.400 --> 0:13:19.160 with open Ai. I mean can they? 0:13:19.840 --> 0:13:22.200 I mean, in theory they can because of that forty 0:13:22.280 --> 0:13:24.319 nine percent stake that exists. But I guess the question 0:13:24.400 --> 0:13:26.920 now really goes to words more and this is not 0:13:27.000 --> 0:13:29.800 my area of expertise and manly intellectual property and where 0:13:29.840 --> 0:13:31.320 the founding of it is. If you look at the 0:13:31.360 --> 0:13:33.640 makeup of the board of open Ai, the board that 0:13:33.679 --> 0:13:36.720 ousted Sam Altman, by the way, it's made up of 0:13:37.040 --> 0:13:41.280 basically the brains behind chat GPT, you're chief scientist for example, 0:13:41.280 --> 0:13:45.520 that Sam Altman was notably at odds with even Mira Marati, 0:13:45.840 --> 0:13:49.040 she was the chief technical officer over at open Ai 0:13:49.120 --> 0:13:52.400 before she became interim CEO. She's been advocating for Sam 0:13:52.440 --> 0:13:54.840 to actually come back to the board, but other members 0:13:54.880 --> 0:13:57.640 of the board include experts in tech who were actually 0:13:57.679 --> 0:14:02.600 able to help create it. There is a thought out 0:14:02.640 --> 0:14:05.320 there that perhaps Microsoft would want to kind of not 0:14:05.320 --> 0:14:07.840 only create their own AI team, but also have that 0:14:07.920 --> 0:14:10.640 exposure to whatever it is open Ai takes on next, 0:14:10.720 --> 0:14:14.200 especially under their new leadership of the former Twitch CEO 0:14:14.640 --> 0:14:15.280 Emmett Shecher. 0:14:15.800 --> 0:14:18.280 All right, Bloomberg's Critti Gupta will be checking back with 0:14:18.320 --> 0:14:22.640 you as we continue to monitor developments with Sam Altman, 0:14:22.680 --> 0:14:27.240 now former CEO of open Ai, landing at Microsoft to 0:14:27.360 --> 0:14:31.520 lead their artificial intelligence team. Now, we want to turn 0:14:31.680 --> 0:14:34.720 to the Middle East, where Israel and Hamas are said 0:14:34.800 --> 0:14:37.360 to be closer than ever to reaching a deal to 0:14:37.440 --> 0:14:40.880 free hostages taken in the October seventh attack that's set 0:14:40.920 --> 0:14:43.800 off the war in Gaza. That would be an exchange 0:14:43.840 --> 0:14:46.560 we're told for a multi day pause in the fighting 0:14:46.880 --> 0:14:50.720 for more. We're joined now by Israeli government spokesman Alon Levy. 0:14:50.800 --> 0:14:52.960 It's good to have you back on with us here 0:14:53.000 --> 0:14:56.400 on Bloomberg. Alon, can you give us any further clarity 0:14:56.800 --> 0:14:59.600 on where things stand on these hostage talks? 0:15:00.560 --> 0:15:03.080 Israeli society is, of course sick with worry for the 0:15:03.080 --> 0:15:06.160 fate of our two hundred and forty hostages, including thirty children. 0:15:06.320 --> 0:15:09.440 I really do mean sick with worry. People aren't sleeping properly. 0:15:09.680 --> 0:15:12.200 We're doing everything we can to bring them home. You'll 0:15:12.280 --> 0:15:15.520 understand that I can't comment on sensitive negotiations that are 0:15:15.560 --> 0:15:18.520 ongoing because human lives hang in the balance. We hope 0:15:18.520 --> 0:15:20.520 to bring these people home, but the less we say 0:15:20.520 --> 0:15:20.840 the better. 0:15:20.880 --> 0:15:23.720 At this point, are you hoping to get all the 0:15:23.760 --> 0:15:28.240 hostages back? How would it work in terms of the 0:15:28.360 --> 0:15:31.320 number of hostages that could be returned, and what would 0:15:31.320 --> 0:15:33.280 that mean for the progress of the war. 0:15:34.360 --> 0:15:37.400 We have two goals in this war in response to 0:15:37.440 --> 0:15:41.440 the October seventh massacre. The first is to totally destroy Hamas's 0:15:41.440 --> 0:15:44.920 governing and terrorist infrastructure inside the Gaza strips so it 0:15:44.920 --> 0:15:47.400 can never pose a threat to our people again. And 0:15:47.440 --> 0:15:49.960 the second is to bring all of our hostages home. 0:15:50.000 --> 0:15:52.280 That is the goal of this war. We hope that 0:15:52.280 --> 0:15:55.520 they will be brought safe and sound. Unfortunately it's been 0:15:55.560 --> 0:15:59.320 too late for some of them. Corporal Noah Marciano, age nineteen, 0:15:59.440 --> 0:16:02.320 was a female soldier. Yesterday we revealed that she was 0:16:02.400 --> 0:16:06.000 executed by Hamas on the grounds of the Shifa Hospital. 0:16:06.160 --> 0:16:07.960 We're doing everything we can to get the rest of 0:16:08.000 --> 0:16:11.520 the hostages out, including the thirty children, including the ten 0:16:11.840 --> 0:16:14.360 toddlers under the age of five. We're sick with worry 0:16:14.400 --> 0:16:17.400 for them. We're demanding their immediate and unconditional release, and 0:16:17.400 --> 0:16:19.520 we're calling on the whole world to put all possible 0:16:19.560 --> 0:16:22.760 pressure on Hamas and its supporters. There is no excuse 0:16:23.040 --> 0:16:25.320 for abducting babies from their beds and holding them in 0:16:25.360 --> 0:16:28.760 communicado for forty five days in a dark tunnel somewhere. 0:16:29.080 --> 0:16:33.600 To your point about Hamas reportedly using that hospital or 0:16:33.640 --> 0:16:37.920 Shifa Hospital as an execution point four hostages, that raises 0:16:37.960 --> 0:16:42.600 the question once again about whether Hamas used that hospital 0:16:42.680 --> 0:16:45.720 itself as a command and control center. I know the 0:16:45.760 --> 0:16:50.160 Israeli military has a released video that shows tunnel shafts 0:16:50.520 --> 0:16:56.280 near that facility. Does that prove that Hamas used that 0:16:56.400 --> 0:16:59.200 facility as a military post? 0:17:00.360 --> 0:17:02.920 All the people who've spent the last few days pretending 0:17:02.920 --> 0:17:06.720 that the Hamas terror tunnels were the next Saddam WMD's 0:17:07.000 --> 0:17:09.440 look very silly now that the evidence has come to light. 0:17:09.880 --> 0:17:13.640 Last night, the IDF released footage of a tunnel that stretches. 0:17:13.680 --> 0:17:16.960 The shaft stretches ten meters underground on the grounds of 0:17:17.000 --> 0:17:20.639 the Shifa Hospital. It then extends for fifty five meters 0:17:20.760 --> 0:17:23.560 until you reach a blast door with a gun hole 0:17:23.600 --> 0:17:25.160 in it. Now, I don't know whether you've ever seen 0:17:25.200 --> 0:17:27.440 a blast door with a gun hole in an underground 0:17:27.480 --> 0:17:30.200 tunnel in hospitals near where you are. We certainly don't 0:17:30.200 --> 0:17:33.000 have them here in Israel. And that's in addition to 0:17:33.040 --> 0:17:36.440 the evidence that Hamas used the Sheifa Hospital on October 0:17:36.480 --> 0:17:40.760 seventh in order to hold hostages. Yesterday, we released CCTV 0:17:40.760 --> 0:17:44.639 footage from inside the hospital showing two hostages, anpoorly and 0:17:44.680 --> 0:17:47.960 a Thai citizen by the way, being manhandled into the hospital. 0:17:48.160 --> 0:17:50.520 One of them doesn't appear to be wounded at all, 0:17:50.560 --> 0:17:53.960 and he's being dragged in by terrorists with a meat 0:17:54.040 --> 0:17:57.240 kleaver and with guns. The evidence is there for all 0:17:57.280 --> 0:18:00.639 to see. Unfortunately, the World Health Organization, none of the 0:18:00.680 --> 0:18:04.040 other UN agencies that have for many years been covering 0:18:04.119 --> 0:18:07.159 up for Hamas, have found the moral courage to condemn 0:18:07.200 --> 0:18:10.680 Hamas's use of hospitals as human shields. And we're demanding 0:18:10.720 --> 0:18:14.320 full accountability from these agencies that most probably knew and 0:18:14.359 --> 0:18:17.359 said nothing and still continue to say nothing. Obviously, we 0:18:17.440 --> 0:18:20.960 in Israel are suffering from this deep systemic rot in 0:18:21.040 --> 0:18:24.479 these international institutions, but they're failing the global community as 0:18:24.520 --> 0:18:27.639 well when something like terrorists using hospitals as a command 0:18:27.720 --> 0:18:30.199 center is something that they cannot go on the record 0:18:30.240 --> 0:18:30.679 and condemn. 0:18:31.000 --> 0:18:34.720 And to that point, Alon, there has been the concern 0:18:34.840 --> 0:18:37.960 raised as well as you alluded to, from the World 0:18:37.960 --> 0:18:40.960 Health Organization, the United Nations, and now the United States 0:18:41.000 --> 0:18:46.080 about the risk of civilians, non combatants, being casualties. Now, 0:18:46.119 --> 0:18:51.200 with the fighting moving into hospitals and into schools as well, 0:18:51.240 --> 0:18:56.400 how can you minimize the risk of further civilian casualties 0:18:56.440 --> 0:18:57.359 in this conflict. 0:18:58.359 --> 0:19:01.760 We are targeting Hamas everything we can to get civilians 0:19:01.800 --> 0:19:05.560 out of harm's way. Unfortunately, on October seventh, Hamas declared 0:19:05.600 --> 0:19:08.520 war on us with the brutal October seventh massacre, and 0:19:08.680 --> 0:19:12.200 it chose to fight that war from within densely populated areas. 0:19:12.560 --> 0:19:15.840 You know, Hamas's whole strategy is based on human shields. 0:19:15.880 --> 0:19:18.479 It sounds evil, it sounds cynical, and that's because it is. 0:19:18.960 --> 0:19:22.640 Hamas has spent sixteen years embedding itself under civilian areas 0:19:22.760 --> 0:19:25.480 so that it can hide behind women and children. And 0:19:25.520 --> 0:19:27.720 as our soldiers have gone through the Gaza Strip, we 0:19:27.760 --> 0:19:31.919 have uncovered tunnel shafts underneath a child's bed. We found 0:19:31.960 --> 0:19:35.480 missiles in the compartment under a girl's mattress. We found 0:19:35.560 --> 0:19:38.840 rocket launchers with the cables leading into clinics and mosques. 0:19:39.320 --> 0:19:42.439 And we've spent the last month urging civilians in northern 0:19:42.480 --> 0:19:45.359 Gaza to get out of the way because the fighting 0:19:45.400 --> 0:19:47.960 is going to get dangerous. Because Hamas is trying to 0:19:47.960 --> 0:19:50.119 put them in harm's way. We're trying to get them 0:19:50.160 --> 0:19:53.600 out of harm's way. That's why we've been securing humanitarian 0:19:53.640 --> 0:19:56.480 corridors for people to leave. Our own soldiers have been 0:19:56.520 --> 0:19:59.640 shot at by Hamas terrorists with RPGs as we try 0:19:59.640 --> 0:20:02.720 to secure your safe passage for Palestinians to leave. And 0:20:02.800 --> 0:20:05.240 I have to say it's tragic that Israel has been 0:20:05.359 --> 0:20:09.199 urging an evacuation since October thirteenth because the fighting is 0:20:09.240 --> 0:20:13.080 going to get dangerous, and UN agencies resisted and said 0:20:13.080 --> 0:20:16.560 that couldn't happen. And now the World Health Organization has 0:20:16.640 --> 0:20:19.399 finally come around to Israel's way of thinking that that 0:20:19.560 --> 0:20:22.399 hospital has to be evacuated to keep people safe. It 0:20:22.480 --> 0:20:25.679 took thirty eight days, and we hold the World Health 0:20:25.760 --> 0:20:30.080 Organization complicit with Hamas's human shield strategy and with any 0:20:30.200 --> 0:20:32.480 loss of life that has taken place in that time 0:20:32.560 --> 0:20:35.600 because of its gross negligence, because it dragged its feet 0:20:35.640 --> 0:20:39.520 and refused to facilitate an evacuation before the ground offensive, 0:20:39.880 --> 0:20:43.399 and is now demanding that Israel complete that evacuation under fire, 0:20:43.440 --> 0:20:45.879 something we will of course continue to do because we 0:20:45.920 --> 0:20:48.040 don't want to see civilians heard we want to go 0:20:48.080 --> 0:20:49.040 after Hamas. 0:20:49.520 --> 0:20:52.600 In the last couple of days, Alon, we have heard 0:20:52.720 --> 0:20:55.800 that this war is moving into a new phase now 0:20:55.840 --> 0:20:58.880 with the fighting going on into hospitals. Can you explain 0:20:58.920 --> 0:21:02.280 more what the new phase of this war means. Is 0:21:02.320 --> 0:21:04.840 the fighting going to move further into southern Gaza. 0:21:06.040 --> 0:21:10.080 Israel is now operating deep inside Gaza City. We're striking 0:21:10.080 --> 0:21:14.440 at Hamas's control and command centers, and the Israeli Army 0:21:14.480 --> 0:21:17.040 Chief of Staff said just at the end of last week, 0:21:17.080 --> 0:21:20.520 we're approaching the end of our campaign in northern Gaza 0:21:20.600 --> 0:21:23.679 to root out Hamas infrastructure and will turn to the 0:21:23.680 --> 0:21:26.199 rest of the Gaza Strip. Our response to the October 0:21:26.280 --> 0:21:30.240 seventh massacre. To that horrific terror attack when twelve hundred 0:21:30.320 --> 0:21:36.000 people were butchered, massacred, tortured, mutilated, burned, alive, raped in 0:21:36.040 --> 0:21:39.480 the most brutal way imaginable, is to eliminate the terror 0:21:39.560 --> 0:21:43.440 organization that did that and is openly promising in interview 0:21:43.480 --> 0:21:47.600 after interview to do another October seventh, and another October seventh, 0:21:47.600 --> 0:21:50.720 and as many as it takes until they murder every man, woman, 0:21:50.840 --> 0:21:54.159 child in our country. This war must end with the 0:21:54.200 --> 0:21:57.080 total eradication of Hamas. And we know that we stand 0:21:57.080 --> 0:21:59.840 shoulder to shoulder with the Free Nations, with President by 0:22:00.160 --> 0:22:02.399 And in the United States, who wrote in the Washington 0:22:02.440 --> 0:22:05.800 Post yesterday, this war must end with the total destruction 0:22:05.880 --> 0:22:09.760 of Hamas. This war cannot end with Hamas free to reoffend, 0:22:10.240 --> 0:22:12.720 because if this war ends with Hammas still in power, 0:22:12.800 --> 0:22:15.919 it will perpetrate more atrocities against our people. It's a 0:22:16.040 --> 0:22:20.000 genocidal terror organization that openly says it wants to murder 0:22:20.080 --> 0:22:22.719 every person in this country, destroy the state of Israel, 0:22:22.880 --> 0:22:24.920 and we will not let it. This was the straw 0:22:24.960 --> 0:22:27.440 that broke a very strong camel's back, and this war 0:22:27.480 --> 0:22:29.120 will end with the end of Hammas. 0:22:30.080 --> 0:22:31.080 Thank you for joining us. 0:22:31.160 --> 0:22:33.480 Alon, I hope we can reach back out to you 0:22:33.920 --> 0:22:36.640 in the days to come. That's Alon Levy with us 0:22:36.760 --> 0:22:41.720 this morning, spokesman for the Israeli government. This is Bloomberg 0:22:41.800 --> 0:22:45.000 Daybreak Today, your morning brief on the story's making news 0:22:45.040 --> 0:22:47.480 from Wall Street to Washington and beyond. 0:22:47.640 --> 0:22:50.399 Look for us on your podcast feed at six am 0:22:50.480 --> 0:22:54.159 Eastern each morning, on Apple, Spotify, and anywhere else you 0:22:54.200 --> 0:22:55.399 get your podcasts. 0:22:55.480 --> 0:22:58.200 You can also listen live each morning starting at five 0:22:58.240 --> 0:23:00.840 am Wall Street time on Bloomberg eleven three to zero 0:23:00.880 --> 0:23:04.359 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:23:04.359 --> 0:23:07.359 one oh sixty one in Boston, and Bloomberg ninety sixty 0:23:07.520 --> 0:23:08.480 in San Francisco. 0:23:08.840 --> 0:23:12.000 Our flagship New York station is also available on your 0:23:12.040 --> 0:23:17.480 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:23:17.520 --> 0:23:20.959 Listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:23:21.040 --> 0:23:25.320 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:23:25.080 --> 0:23:28.199 And I'm Karen Moscow. Join us again tomorrow morning for 0:23:28.359 --> 0:23:30.880 all the news you need to start your day right 0:23:30.880 --> 0:23:32.560 here on Bloomberg daybreak