App store ruling one by epic two years ago. Caroline moments after candidates spark comic and security concerns for the app. More on that and the companys ecommerce cook ambitions. Lets check the markets. The nasdaq managed to push up more than a percentage point even in the face of growing yields. On the 30 year basically flat up one billy basis point. We had been at decade highs since 2010 on the 30 year. Maybe i correction with yields down on the front end. Weaker macro data on the front end trying to work out the direction of travel for federal and global Central Banks tackling stronger economies particularly in the u. S. The dollar pulls down after days of rallying. It may be a sigh of relief for some riskier assets at the moment. The dollar index is up by. 5 . Bitcoin higher versus the u. S. Dollar. Risk appetite building a little in the oji world of crypto. If we can shine a light on bitcoin high on the day up 3. 3 . Ed we have news and earnings. On the news side peloton has a content deal with lululemon. The stock up 7 now. It had been much higher later in the show. We will bring you analyst reaction. Its all around lululemons mirror. But it has a finite life at it is interesting to see the stock bounce all over the place. Micron, the biggest u. S. Maker of memory chips predicting a wider than expected loss for the fiscal first ending in november. There are signs the memory market may be coming out of the trough. We will go deeper on that later in the program. There is an interesting day two to meant to connect. The metadevelopers conference. On a two day basis trade is all over the place. While metaconnect was going on kind of disinterested. The stock closes basically flat wednesday. But, was a significant a higher today. We had a hardware announcement around three and smart glasses. Its about the integration of the research side. Large language models. Now, generative ai tools into its suite of absent offerings. Caroline lets listen to what Mark Zuckerberg really articulated about ai the event. Our view is people will want to interact with a bunch of different ais for Different Things you want to do. I think overtime a lot of you will want to make your own a heist to advance individual goals you have. Whether you are a Small Business and you want to interact with customers or you are a creator and you want to engage your community. Whatever it is you do. Caroline mark gurman is our hands on product guide. He will delve into how much of these sorts of chatbots and celebrity endorsements and the way you think generative ai will up the ante on some devices and the offering they have across the board for social media. Mark i think the new devices are impressive. But, this is really may be the last stand for meta. Metafor the last few years has been pushing the idea of their quest headsets being the very core of the metaverse. The idea of using headsets in Virtual Reality for the future of working online, for communicating with people, as the future of the social network. If you watch metaconnect you will notice Mark Zuckerberg didnt really mention the metaverse. The latest smart glasses with rayban, it to pivot away from the metaverse had a move towards two things. They are pushing towards when apple is doing with mixed reality. I think the quest headset, the goal is to focus on performance, gaming, and productivity. Whereas, the smart glasses have a lot of ai features. Lets look at ai. There are generative ai chatbots. There are these celebrity child heads and a few other things related to stickers. There are ai based collaborations. These are things meant really needed to do. But nothing they announced this week is novel. We have seen Similar Technology from microsoft and google and amazon a couple weeks ago. Certainly, from openai and others. Metais a bit of a laggard here. They did what they needed to do to be there in 2024 and that would of course be the year of ai for apple as well. Ed what does ai look like at metain its suite of apps . I dont know if you are using facebook, but you are on instagram. What does it look like as a consumer, a user of social media . Mark ai will now be completely integrated across the suite of facebook apps whether it is the facebook blue app, instagram, messenger, whatsapp. You will get a chatgpt like system integrated into chatbot. You can have it right messages for you. You can have it collaborate on your behalf with other people in your contact list. It is a fully integrated expression of generative ai. That is what chatgpt has been missing. Chatgpt is a Core Technology thats novel. It can do cool things. It is not integrated into a platform. You are seeing metabeing one of the First Companies to show integration of ai across the platform. Not too on similar from what amazon showed a couple weeks ago, generative ai being built into alexa. The next step of these tools is moving from raw data, raw functions into something integrated into existing platforms. I think you will see that from apple happen as well next year. I think metareally showed some of the most cool stuff so far we have seen in the ai world because of how integrated it is into the existing work most consumers use on a daily basis. Ed you heard from mark number one, zuckerberg. You mark gurman, mark number two. Mark number three joins us now. Analyst mark mahaney are senior managing director. An outperform rating on bento. I start by asking you, do you understand how metawill make money from integrating generative ai progress into the existing suite of apps . Mark yes. Ed explained it to us. Mark they have been using ai. 3 billion people use facebook and instagram. Those people that have used it have noticed something the last two years driven by ai. Which is, the news speed has changed. It has gone from content just about your friends and family to content from across the internet. It has gone from being a social media site with the accent on social to the accent on media. Artificial intelligence has helped them. They deployed it to make the User Experience broader, more allencompassing end it paid off. You have seen rising engagement. As an flipped to the advertising side. You are seeing return on ad spend reprove and recover at matter meta over the last year showing up in dramatic a subtle reading ad Revenue Growth accelerating added Revenue Growth. We have already seen its successful employment of ai. I dont think the market relies sp are now they are taking it further with generative ai and the use of chat box chatbots and these little widgets, emojis, etc. On the site for they will make the site more engaging using generative ai. On the chatbot side they will better monetize it increasing your engagement on the site. With chatbots there is a real pitch for businesses. It can reduce material Customer Services costs giving businesses a chance, businesses that rely on whatsapp and facebook but that your to interact with customers it allows them to better and more efficiently hander customer complaints and Customer Service etc. Theres a lot of wins here. Everybody focuses on nvidia, aws and microsoft on the big rise of infrastructure platforms. But the killer app is facebook, meta deploying generative ai right in front of our faces using it to improve User Engagement and advertisers spend. Caroline a bit of a mike drop, mark. A great analysis of how we will see money spinning out of generative ai. How does it fit into the rebranding of meta . The metaverse, the actual hardware. How do you think that is a decent competitor to what apple would bring us First Quarter 2024 . Mark i dont know the answer to that. That is tougher. What is interesting about the way the stock traded, as we had conversations yesterday during meta connect about the metaverse, about the devices and the glasses, the stock kind of trickled down. Then we started getting into generative ai and the stock moved up. That is the focus today. I think it tells you the market would like to hear a little less from zuckerberg co. About the metaverse and more about how they will deploy generative ai. I think zuckerberg got the memo. I think this event was pitched as part metaverse part ai. But when it actually came to details we got a lot less metaverse, a lot less oculus and quest and more ai. That is why the stock is reacting the way it is. The market is telling zuckerberg , lets limit down the amount you invest in the metaverse. We really appreciate what you are doing in generative ai. Ed i still want to ask you, mark, does spending 15 minutes with a mixed reality headset on either watching something or playing something on the weekend appeal to you . Mark i have tried both. I have both versions of the quest. The gen one antigen two. The truth of the fact is i gave it to my children and they loved it for one day. If i see something enduringly appealing to people, two adults and all sorts of people, no, not yet. But, is the potential there . Why not. If there was not potential you would not have apple entering the space. There is something there. I do not know whether it is quest seven that really breaks through and you really have a lower price point and will to get people with mass adoption of the devices. There is the potential for that. Then you have to figure out are there other educational apps . Absolutely. Are there Enterprise Apps . Probably. Whether meta can succeed with those are not is a different question. But, Virtual Reality, mixed reality, augmented reality, i think there are enough thoughtful people investing in the space looking for a different experience. It is a wild experience. I think theres something there. Caroline timing is everything in many ways. We saw chatbots and ai with him 2015 25th 20152018 they put that on ice because it was not as useful. Now with generative ai the chatbots are. Is there a winner take all scenario here . It is interesting in this respect we have meta teaming with being and microsoft here. Mark i dont think so. There will be a lot of plays. If we step back this is a Wonderful Development we will all benefit from. As consumers, businesses, and individuals what have you we are seeing a dramatic step up in computer power and it all builds on, you would not have generative ai if you did not have the internet. If you do not have mobile internet. If you did not have clout. They all build on each other read it means digital experiences will become more relevant, more personalized, more useful, more entertaining. I think its super exciting and you will see we have waves now of infrastructure, plat for investments, people waiting to see what apps come out of this. I think there will be some apps that i cannot think of what will be out in the 35 years that we will look back on and say wow. There is the ability to apply generative ai today to improve existing processes and experiences. There is a wonderful example in front of us now, meta. Caroline evercore isi, we thank you so much. Coming up, ever gains versus apple. The battle continuance. Continues. Ed that gamestop stock is down 1. 4 having open higher. Ryan , the billionaire that was its chair is taking on the ceo role. No compensations but he is able to pursue other business interests outside. What a roller coaster with gamestop. The latest is ryan cohan for now is the ceo. This is Bloomberg Technology. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh caroline epic games is the maker of Popular Online game fortnite laying off about 900 employees about 16 of its work was according to a source out says job cuts were announced in a memo to staff. It is one of the biggest privately held videogame companies in the world. Speaking of epic, it has had a longrunning battle with apple. We have an update. At the heart of it all epic claims apples online marketplace policies violate federal law. Claims a federal judge rejected two years ago. Yesterday epic asked the u. S. Supreme court to review the ruling. This morning apple filed its own petition with the Supreme Court to review a different part of the ruling from two years ago. Lets break it all down. Keeping up to speed with what is a long saga. From your perspective, what a thick is trying to bring to the Supreme Courts attention is one particular nuance in the two years ago ruling, a california part of the law. Yes, that is right. Apple won the majority of the ruling that basically said stored policy shown violate federal laws and that is the part epic is appealing at the Supreme Court. Epic once oh ruling on california state competition law where a judge found the fact that apple does not allow developers to point to alternative payment methods, perhaps to a link, a button, or an email thing you can go on the web and make a payment. The judge thought that was unlawful. This is the part apple is appealing. Apple wants to make sure that part of the decision is reversed. Guy so, that is ed so, that is the part apple is appealing. In parallel epic its also asking the courts to review a separate part of the original decision. What does epic want . Malathi epic, one part i talked about. But, the largest aspect of federal antitrust laws, the court held its App Store Policies were absolutely fine and did not violate any anticompetition laws. It upheld up store policies at large and that is the part that apple one and epic once that reverse. Ed bloombergs Malathi Nayak the face of it all. Coming up on Bloomberg Technology google has become a favorite for Law Enforcement seeking location and search data even for nonviolent cases. Thats todays big take. We will bring you one of the reporters behind it next. And a quick look at amd. There is no news flow catalyst behind the stop on track for the biggest jump since may. On a two day basis also on track for the biggest jump since may. A bit of momentum rising for two straight sessions. In todays session up 5. 8 . This is Bloomberg Technology. Caroline its time for talking tech. Spacex will provide customized satellite to the military under the companys new star shield program. It is signing a 250 Million Contract from the defense contract. Volunteer will research, develop ai and Machine Learning technology and affirmance relationship with the u. S. Government. Plus, Apple Unveils the new iphone 15. Maybe too hot and the commodity is what some users say. They say the back or is this or the side of the phone comes too hot to touch while gaming or charging it. Apple has not responded to quest for comment so far. Ed that is a lot to do with titanium as reported by mark gurman. Bloomberg is shining a light on a growing trend regarding privacy concerns. Some police are using lawrence to dig up location and search data from google even for nonviolent cases are those that have nothing to do with the crime. The big take in the bloomberg magazine out october 3. Lets go to the mechanics. The police are trying to get a warrant from a judge. They go to google and ask for data. Why . Google has become one of the favorite destinations for Law Enforcement trying to solve crimes. It has a big repository of location information. So if, say, a burglary takes place at a Jewelry Store and the police do not have other sources of evidence they might go to google to see if google happens to have registered any devices that were present at the location near the time of the crime. That can often be a first step in an investigation. But it raises big privacy concerns. Ed lets talk about those concerns. You write that this is often avenue when a detective is at a loss and cannot go any further. So, they turn to google. But they are getting a hold of peoples data. Julie yes. The problem is because google has such big databases it means in order to find the potential suspects, they have to also go through data of people that had nothing to do with the crime and police sometimes will have to go through those innocent users data in order to help hone in on the users that truly might be involved. Caroline its extraordinary the numbers. Google received a record 60,472 search warrants in the u. S. Alone last year. We know that is a lot. We know in many ways apple has a different way of allowing or disallowing the sharing of such information. But, they also use google maps on your apple iphone. Then your data will be exposed as well. Ultimately, what are people taking issue with . How are people started to fight back . What is googles response . Julie so, there are different schools of thought on this. Some people feel we need to give Law Enforcement every tool that they can to solve crimes. Other people feel the privacy of the patients are just too great. They are concerned about the possibility of using search data. Search for the address where crime took place. That could have been committed by the culprit but it also could have been conducted by someone on their way to the place. Some people feel like that is too big a risk to take. Legislation has been proposed in new york and california to ban police from turning to google in this way. Caroline your story focuses on one particular National Associated criminal defense bar your at the Defense Center a guy called Michael Price highlighting this almost the opposite of how a warranty used to be where you would ask for specific details on a specific person and this is far more catchall. Has alphabet, have google responded to this . How are they given with it internally . Julie these warrant put google in a difficult spot. They are court orders that are not optional. The company is obligated to comply. They go over them with a fine toothed comb trying to identify warrants that are overbroad and potentially violate the fourth