Ai. That conversation later. We will push ahead to the earnings out after the bell. Broadcom the latest company to test if this ai rally is a reality. The eus Digital Markets act takes hold today. We will break down the epic battles already raging for apple. Lets check out this market rally we are seeing and ai drives it. We see the mood music trying to decipher the rate of travel for the fed. The nasdaq currently powering on higher. Big test gets the lift. The euro actually higher versus the dollar. The dollar moving as we anticipate rate cuts. Dovish tones seemingly being interpreted from jay powell as we see Christine Lagarde hint to future cuts. The dollar is weaker against most fx payers today. And looking at whats happening in terms of the japanese rally versus the dollar, we have seen the yen up amid signals the boj might move to increase rates, up. 8 versus the dollar. A look at whats happening in the world of a brisk asset of choice on this show, bitcoin a risk asset of choice on this show, bitcoin. It is pushing to the upside. Lets dive into some of the individual names. Up 3. 4 on the benchmark that measures these chipmakers, and a record high for the Philadelphia Semiconductor index. Palantir is where we go towards the second half of the show. Of 3 as they have their ai day. Lower for apple as we try to decipher digest whats happening with e. U. The Digital Markets act is coming into force today hitting firms with a list of dos and donts. The aim to create a more competitive online field imposing changes on these six socalled gatekeepers. Apple, amazon, google, meta, microsoft, bytedance. Regulators are wanting to know about accusations that its barring epic games from opening its own app store for iphone customers in europe. That is what these new rules are meant to be allowing. Mark gurman has more and the battle still rages on. Give us the inside track of why we are seeing apple not allow this thirdparty app store to come to light . Mark caroline, apple has a lot on its plate. The Digital Markets act is coming into place. Theres a lawsuit coming from the u. S. Department of justice before the end of the month so they are already dealing with a lot. This latest bit is unnecessary. Apples app store chief and others at apple perhaps were upset about tim sweeneys tweets and response to the dma rollout, apples way of complying with the new eu regulations. Sweeney tweeted apples response and new policies are hot garbage. He called it malicious compliance and had other choice words or, as phil shiller called it, colorful language. They decided to yank the account in sweden that would allow epic games to roll out its thirdparty app marketplace in the countries that make up the eu. They pulled the developer account and now the eu is asking questions on the launch day for these new rules. Not great and this has the potential for the eu to fine apple. They probably dont have a great argument for why they did this in the mind of the eu. Pulling the account because they did not like the response on twitter is not a good look for apple. Its childish on one hand. On the other hand, theres the perspective that apple things they will break the rules again, so not a great development. Caroline and we have been hearing spotify also taking issue with some of apples ways of working around the dma and feeling they will still be charged an untoward amount of money ultimately if you get one get more than one million downloads. Apple faces many issues and to keep eat of report and the key piece of reporting you brought us last week was this after they have attracted on, building the apple display have retracted on, building the car. Walk us through you take today. Mark i think investors are realizing what is coming next. Investors all want to bind to what the future to buy into what they think the future of the company is. They had ambitions to build what amounted to a private jet or living room on wheels. You had club style seating, recliners, foot rests, gigantic tds and stateoftheart audio systems, the ability to watch tv and facetime and game in your car while it is driving itself. It looks like a canoe with like a canoe ev. Some stateoftheart autonomy systems. It looked nothing like you have ever seen on the road before. But there were major problems from an decision on what to do, what level of it, to go for from the top of the company of autonomy to go for from the top of the company, questions about when it would be ready. There were manufacturing concerns, competitive issues, and, of course, the nature of the competitive car business and the profitability of what a car would bring and the challenges in that business but i will say i spoke to someone involved in the project yesterday and they pushed back on the idea of there being profitability concerns, which there were, but this person disagreed, saying you know what business is harder than the automotive business . The Consumer Electronics business and apple is doing fine there. Caroline well said. Mark gurman. Great reporting. Thank you. Lets go to where the optimism in the market has been, chipmakers. Broad caught them earnings after the bell today broadcom earnings after the bell today. Investors are waiting with bated breath. We are anticipating big numbers. Yes. Investors are looking at these earnings as the next gut check for the chipmaking stocks, the hardware and picks and shovels if you would call them that of the ai rally so what wall street is expecting is for broadcom to report 11. 8 billion dollars in revenue for the quarter, a 30 jump yearoveryear. Most of that is from ai and what they are also looking for is the total chip sales, which was 15 , will go to 25 for the year. They will be looking for an update on their progress. Are we moving toward that when 5 number . The stock is looking good. We are up 3 today, 25 yeartodate, and 50 from its last earnings release. Broadcom is a little bit of an unsung ai hero because its the 10th biggest stock in the s p 500 now. It is not get the same shine as the star of the show, nvidia, but its in a similar realm. One thing investors are also looking at here is that unlike nvidia or amd, broadcom is less of an ai pure play. There are other pieces of the puzzle here. Some people say that could be beneficial if ai is indeed a bubble. There might be some insulation for broadcom investors. But on the flipside, could hold back some of the growth some of the ai names are seen. So theres a lot that investors will be looking at here. If the last release was any indication of whats coming on the call and future guidance from the ceo will be important. Last quarter, we saw shares dip a little and go back up when the ceo said ai will be a bright spot for them going forward. Caroline carmen reinicke, we are pleased to say you will be all over this story when the numbers come out after the bell. Coming up, the state of Artificial Intelligence, not just for chip stocks, but how diversity is necessary when building these large lingwood models, thinking about Large Language Models, thinking about policies for responsible ai. Lets get back to the chipmakers. Nvidia powering us higher. Chip stocks at a record high but nvidia notably has had some Key Executives and the stock of late, 180 million worth, in fact, unloaded by a couple longterm board executives in the last few days. That follows on significant sales happening in february as well. This is bloomberg technology. [announcer] if youre thinking about earning your degree online, snhu can help you get there. I felt supported throughout the whole process, even from the first call. [graduate] my advisors consistently reached out and guided me along the way. It was like i was talking to a friend, like someone that i had known for years. The instructors were very helpful with everything that i was going through. [announcer] well be with you from day one to graduation to your dream job. It all starts the moment you find your program. [announcer] go to snhu. Edu to get started. Ai will create tremendous wealth and value for shareholders, stakeholders, employees, for the people and businesses that utilize ai and we cannot leave behind women and minorities in this Value Creation moment. Caroline salesforce executive clara shih on how diverse workforces are key to building Artificial Intelligence models and creating policies for responsible ai. The founder and ceo of credo ai joining us. The company colts Companies Company helps companies determine whether there ai is reliable and responsible. Governance has an interesting connotation in the world of ai. Many see it as a deterrent to innovation but that is not the right way to think of it. Organizations that embeds in bed and start doing Ai Governance early show up as winners. What is interesting is the headlines keep coming. I have a colleague writing that theres been a whistleblower at microsoft coming forward saying there are concerns with image generation, with dali, that theres not enough governance and guardrails in place for safe image generation, and we know whats happened with gemini, wear to correct one bias, they ended up bringing us completely ahistorical images. How could have governance fixed this ahead of time before release . Navrina generative ai and ai by itself is a complex technology. One of the things i think most people dont understand is its not just a technical problem. Its a social, technical set of problems being introduced. What that means is how could geminis problems be solved or what we are seeing with microsoft . What are we providing applications for and how users are getting impacted is critical. Thats whats critical for organizations to understand. Making sure the right diverse set of eyes have been on the system to make sure they are meeting the end goal is critical. Caroline talk me through it as if i was a customer. What do you do . How do i put this governance in place . Navrina absolutely. The key thing is there are three core pillars of Ai Governance. First is alignment. What does good look like for your organization varies organization by organization. That is why alignment on what are you going to measure, how often are you going to measure, how you report it, that alignment is critical. Our Software Helps you with alignment as a service as step one. Once you have aligned, the second step is critical, what are you testing . As i mentioned, given the social, technical nature of Artificial Intelligence, you have to test everything from your technical systems to how your organization is set up to provide that insight and accountability . The last thing is how do you make the outcomes understandable by diverse stakeholders . Not everybody is an ai expert so how do you create the risk dashboard the audit reports so all stakeholders can understand the risks within your system but more importantly what mitigations are you going to put in place and account ability structures are you going to put in place accountability structures are you going to put in place to make sure it works for all . Caroline they highlight many regulators feel innovation was put before safety or level playing fields. When you are saying innovation is being seen as the offset to guardrails, do you think more regulation is needed to ensure the companies are using credo ai, or bringing in their guardrails at the same time . Navrina more intentional regulation is needed. More guardrails and Enforcement Mechanisms are needed. Think about 2024. 2 billion people across 50 countries will be in an election and voting. The majority of that will be powered by Artificial Intelligence. Caroline how is that majority going to be powered by Artificial Intelligence . Navrina because they will get access to information. They will get access to media and ads built around Artificial Intelligence and we see examples of deepfakes already showing up. The key question we should be asking is not only what the policies are in place but how are we going to enforce it so that a normal voter, a citizen who is actually going and showing up to vote, actually has the right information before they make that important decision for democracy. Caroline weve already had an executive order when it comes to ai. You advised the white house on ai and im sure policymaking. His government doing enough . Are we seeing Congress Move swiftly enough . Navrina i would say this is the first time in the past couple decades we have seen Government Action trying to keep pace with technology, but we are in a very different era of Technology Innovation where its moving so fast. This is where adaptive policymaking becomes critical and the executive order is a fantastic example. There were key goalpost put in place, including omb guidance, how does the federal government procure thirdparty commercially i, what are the safety standards, nists role, but i think theres more work that needs to happen. For example, Congress Just passed the budget and funding was cut by 12 . What does that signal . If ai safety and benchmarking is critical, we need dollars and those initiatives, and thats not happening. Caroline i imagine you are a global company. What are other countries doing . Navrina you mentioned europe. The eu ai act goes into effect this month and thats a step forward for a country that is putting european Citizens Rights first through this approach. The question will be how will that be enforced over the next 16 months where each and every organization will have to play by the eu rules . So the eu act will have the brussels effect we saw with gdpr but at a magnitude we cannot imagine and this is a time when organizations need to start getting ready for it. Caroline who would have thought it . Navrina singh, thank you for lending your expertise, ceo and founder of credo ai. Coming up, investing more than 1 billion in south korea. We will discuss why thats also an ai story. This is this is bloomberg technology. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Starting a business is never easy, but starting it eight months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our Business Needs the chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card. Make more of whats yours. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh caroline time for talking tech. Sk hynix ramping up spending on advanced chip packaging in hopes of capturing more of the burgeoning demand for the component in Artificial Intelligence to build, highbandwidth memory. The firm is investing more than one billion dollars in south korea this year to expand and improve the final steps of its chip manufacturing. Chinas foreign minister called the level of trade curbs the u. S. Has placed on the country restrictive. The u. S. Government is pressing its allies to further tighten those restrictions on chinas access to semiconductor technology. The biden administrations latest push aims to plug holes on export controls it has levied in the past two years. Lets stick on the tension with the u. S. And china now because today the house energy and Commerce Committee plans to act on legislation introduced by a Bipartisan Group of house members that would give tiktoks chinese parent, bytedance, just 165 days to sell it. For more, bloombergs dan flatley. Dan, that of course seems to be where we are seeing the push going, get rid of the chinese ownership of tiktok. Dan yeah. We have sort of been here before. Its interesting. This is the latest push and does seem to have some momentum behind it in the sense that theres markup today dishes theres markup today in a house committee. We dont have any indication as to how the senate will act. This still has to go to the house floor and the senate potentially and the president so we are a long way from seeing this happen. And, you know, tiktok has been under some form of National Security review since 2018, and trump when he was president tried to. Ban it in that ended up in the courts. Some action plan to today in the house. Caroline tiktoks response is this is curbing free speech, a right to access such a platform. Do you think their argument carries weight . Dan i think the reason they are making the argument is because the First Amendment challenges are where they are on the strongest legal footing. There are broad exceptions in a lot of National Security laws for free speech. Obviously thats where they intend to mount their challenge. The sponsors of this bill, or at least one of them, mike gallagher, the chairman of the China Committee and d. C. , says this is not a ba. It is just trying to excise chinese ownership of the company. But in some ways that is not for him to say. The courts will have their say on this at some point. He has his argument to make and hes making it now. Caroline dan flatley. Brilliantly bringing us up to speed. Thank you. Coming we get to palantir. Shares rising ahead of their conference. We go to that event next to hear from the ceo, alex karp. From San Francisco and soon from palo alto, this is bloomberg technology. When i was your age, we never had anything like this. What . Wifi . Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all