And openais chief scientist who played a key will in the sam altmans ouster is departing, we will discuss that and much more. But first, lets check in on the markets. There is a macro playbook and it is a quarterly cpi print being digested by the marketer that has sent stocks to record highs. Record highs on global stocks, the s p, the stoxx 600 in europe also getting a lift because people start to factor in that maybe well get rate cuts from the federal reserve. That 10year yield down seven basis. We move on because the dollar is down. That means crypto is higher. A riskon feel to todays trade. Almost 5 up on bitcoin. Google and alphabet shares are higher a second day. We will go later to our reporter who was on the ground. New aibacked search, new iterations of the models. Clearly investors like that. We will unpack new technologies. Other things we are watching, the movers to the downside and the megacaps that are a drag on the nasdaq 100, amazon and tesla. Amazon is lower for a second day after the news of ceo is leaving the ceo of aws. And i put this there is a proxy for openai, which we will discuss later, it is higher by 1 . Very big ai focus in a crowded field right now. It is crowded. Also we are being counted for the news flow right now particularly in the world of social media. The future ownership of social media key player that needs to be divested or indeed be banned from the u. S. We want to discuss tiktok. We welcome our bloomberg tv, and radio audiences worldwide to join project liberty fund are Frank Mccourt who is building a consortium to bid for social media up tiktoks u. S. Business. Frank, welcome to the show. How much money do you actually have to be offering to tiktok . Frank its too early to know how much it will be sold for or if it will be sold. We believe it will be sold and we are betting on that. We dont have the information yet on what exactly they are selling. We cant really tell what the price will be. But one thing that is, important is we are not interested in the algorithm. We are interested in actually an alternative web where people own and control their data and identity. So we are not interested in bytedances algorithm which makes our being particularly unique. Ed we will discuss the technology plan. Its important given the algorithm was essentially put on an export then. Have you spoken to tiktok or bytedance . Have you took spoken to the u. S. Government about this being . Frank we have not spoken to her bytedance or tiktok but we have spoken to a number of other actors and have been encouraged to move forward with this approach. Remember, this is putting forward an alternative vision for how the internet operates. Right now whether it is tiktok or our own investment forms, our information, our data, our personhood is scraped and abrogated by these platforms and they apply algorithms to it. It is past time that we have an alternative version of the internet where we each bone and control identity, own and control our data and we have the benefits of the internet and the Wonderful Technology that is connected all of us, but we are in charge of us. Agencies returned to individuals. That is the technology we have been building for the last five years. So that tech works, we have a proof of concept. There is almost one million users now on this new protocol so now it is time to give people a real choice. Ed you mentioned other actors. I am conscious that sequoia and general, u. S. Based firms that sit on the cap table at bytedance. Do you have their support on your being . Frank its too early to make these statements. We have retained Guggenheim Securities as our advisor to put together all that pisses of this bid. This is early in the process. We dont know exactly what bytedance will be selling. They filed a lawsuit recently so they are fighting this. But i am confident that at the end of the day, they will either have to sell or shut it down. And we dont want to see tiktok shut down. There is millions of users using tiktok and we want to see them continue to enjoy it. But again, we are not interested in the algorithm which i think makes our bid unique. We can migrate these users to a new version of the internet where the 170 million users actually participate in the value they create and are in charge of their data. Imagine a version of tiktok where the version is clicking on the terms of use of each of the 100 70 million users rather than the users clicking on the terms of use of one platform. I dont think the platform should be in control of any one person, one company or a Chinese Communist party. Its important that we shift our mindset now and shift the paradigm from the internet we have been living with which, is doing real harms, undermining democracy, a rip in society apart. We are hearing more about the harms to children. Carolyn Frank Mccourt, project liberty founder and chairman. We are discussing your potential bid for tiktok if indeed it is to be sold and that is a big if. All of this sounds philanthropic. Do you not want any money back if you will be raising billions of your own potentially on the line here . Frank its interesting that it sounds philanthropic to you. I think it has the potential of being one of the biggest impact projects of our lifetime. But this has to have commercial components to it to be realistic. It cant be some alternative internet that is better architected, healthier for people, but no one uses it. Caroline will it be appetizing . Is it subscriptionbased, how will you make money back . Frank all the above. Once you unleash the power and the innovation and the invention of a data economy, we are going to see ideas and models that far exceed what we have today. Right now, all of this is tied up in just a few platforms. Lets unleash the innovation of everyone and have the value sharing proposition be a bit different. Of course, there will be commercial uses are limited only by our imagination. Maybe there will be some advertising models, may be there will be some subscription models, but it has to be highly commercial. Ed there is a recurrent question, i think caroline would back me up that i have been consistent in asking it which is, there are 170 million users of tiktok and most of them like using it as it is. Is there anything you can tell me about the project plan or your engagement with the existing user base that would convince that 170 million that they will want to continue using it, whatever happens . Frank of course, the key to the transaction is for them to be excited about migrating to this new model of the internet, lets call it. Where are they only control of their data and where they participate in the value. The User Experience has to be every bit as easy, polished and fun as it is now, but wouldnt users be excited about actually being in charge and actually participating in the value . So this has to be seamless in terms of the User Experience, but the Underlying Technology will be far better. The design of the technology. Putting them in charge of themselves. So of course it needs to be done in the way where the users are as excited or more excited about the new version. But remember, right now there is a risk that it will be shut down. We dont want to see it shut down, we went to see the users continue to be on a platform that our government is comfortable with and that bytedance, quite frankly, is comfortable in selling it ed we use words like consortium or coalition. There are a number of people who have raised their hand about doing something with tiktoks u. S. Assets steve mnuchin, and eric schmitt, one of the google founders, top of mind. Have you spoken to them and proposed, for example, that you get together and bring your intellectual capital in one bid . Frank no, i have not. I went to distinguish our bid from what i believe there bid their bids to be about. We dont need to saudi money. We are not talking about the same architecture where we replace chinese ownership with another ownership and have thus continued to have a centralized autocratic, surveillancebased technologies where users data is scraped and so forth. Our version is not a topdown approach. Over version is in power the users, empower people and make this a peoples bid. Make this something where individuals have agency and choice and power returned to them. The harms we are seeing with the internet, and this isnt limited to tiktok, right, our own platforms are built with the same model of scraping data and exploiting it. Isnt it time we have a better model . I see this opportunity is a fantastic opportunity to take Proven Technology and scale it and give people a choice, an alternative. Caroline you have people who are at the forefront of that argument about the harms of social media. The anxious generation. David clarks. Tim bernerslee, who helps to create the World Wide Web however. , it sounds like you will need crowdfunding. If you dont need saudi money, what money will you need when you get a price point . Frank it will be a combination of private capital, public capital and peoples capital. Caroline so you will be a crowd funded . Frank crowdfunding has an implication. We are not raising money on the internet. We have brought in Guggenheim Securities to help organize how we raise money. The investors here should be a broad reflect the Broad Coalition we are trying to create here about reclaiming the internet and using this as an opportunity to do that. I would imagine in addition to private capital that it would be pension funds, endowments, foundations, interested in a return, but not only a return on their capital, that have a longer time horizon and would like to see the internet re architected so it is better for all of us and it supports democracy, supports Civil Society and protect young children. The book i wrote recently called our biggest fight get into detail about the harms the current version of the internet are doing to all of us. Its not limited to children, but especially children, and i think our number one obligation is to protect kids. Caroline in fact, thought, leadership there from Frank Mccourt, project liberty founder and chairman. We thank him for his time. Ed coming up, we bring you the big takeaways from googles annual i o Developers Conference with reporters on the ground. That is berg technology. A bee boop time to get up, you silly little nerds, wake up ed that was a dj at the Developers Conference testing out googles dj mode that google recently added to its generative ai text to music to improvement google also ruled out a new Search Engine that includes responses written by ai. Bloombergs julia live was at the Developers Conference under the big ten at that rave under the big tent at that rave and to drives us. The big news i think was a ipowered search. Julia absolutely right. This is auer the big tent at the and to drives us. The big news i think was a ipowered search. Julia absolutely right. This is a real seachange in google search. For the past year google has been experimenting with generative ai overviews. But that was a special test version of the product. Now they are rolling out a generative ai overviews in search so all users in the United States will begin seeing them this week. Francine julia love was the hype man when it comes to google i o, thank you for joining us and sitting us off our conversation from the investor perspective, ayako yooshioka is joining us from wealth enhancement group. What did you make of ultimately google wanted to basically outshine what open it i put out there yesterday. Did they manage to do that . Have they managed to convince us that they arent behind in this raceayooka . And really all the different types of ways they are redefining what search really is for all of us, whether it is the overview portion within the traditional part of search, or just being able to use your phone and the video screen in order to do a search. Music and all the other ways search is evolving. I think it is what was on display yesterday. Ed the stakes are pretty high. I was reflecting earlier in the show that the stock is up for a second day. I think back to some of the gas alphabet has had as well in demoing its generative ai tools and how that has infected the stock, do you think you have done enough to convince investors for the longterm that we have got this, on a consumer facing or business facing ai . Ayako i think the landscape is rapidly evolving. It is difficult to say whether or not alphabet or google is really in that position at that point with ai. It has clearly got a much bigger Competitive Landscape than what was traditional searchs Competitive Landscape. We will have to see how this evolves in the coming months and years. Caroline many are feeling on the street that they have regained the initiative. Many are excited about how gmail is going to become and may be excited that google glass is coming for a reiteration and a modernday take. But i am interested ultimately as to whether this actually adds to revenue, to future profitability from the business when they are undercutting on the price perspective, significantly on the ai offering . Ayako and the cost of all of this ai and integrating it into all the different programs they will have, all the different offerings they will have, is still good to continue to increase. We saw that with the most recent quarter and they are increasing Capital Spending for 2024. So we will have to see how this really shapes up from a financial perspective both on the top line side, from a revenue perspective, as well as the overall impact to earnings. Ed caroline mentioned something interesting, hardware is kind of back, and meta and the raybans is coming up every week on the show. If you are an investor and Portfolio Manager, do you sit in the morning and go, you know what, ive got to get the Research Desk on this hardware use case of ai . Ayako not sure if i am cool enough to get all the hardware whether it is google glass or meta raybans. I think everybody is looking for that next tailored technology. Whether it is hardware or software. And that is the portion i think everybody is still looking for when it comes to generative ai. Caroline also, i think many forget that there is a weight on googles shoulders. They cant rule out products as fast because they have billions of users and the ready we have seen them rush, many would say, the imagegeneration side of the equation and look at the backlash they got for that with gemini. How much are you frustrated by the fact that they are talking up a lot of things and then they leave our imagination as to whether they will be on our hands. Ayako it is a level of frustration when it comes to the overall communication from google. They are in a rush, because they are in opposition to sort of protect what they have. And the position they are in regarding search. So we will see if they are able to refine some of that going forward. I think the most recent google i o yesterday showed they were able to refine it from last year and well see if that continues next year. Ed ayako yooshioka, Portfolio Manager at wealth enhancement group. I think you are cool enough. Come back on the show. As we had two bricks, investorfriendly policies coming out overnight, authorization of a buyback plan that has been universally around the world something investors have cheered. Sony stock is up 1. 5 percent overnight 1. 9 overnight. This is bloomberg technology. The all new godaddy airo helps you get your Business Online in minutes with the power of ai. With a perfect name, a great logo, and a beautiful website. Just start with a domain, a few clicks, and youre in business. Make now the future at godaddy. Com airo 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. The yen Yemeni Government says they are holding back repairs on ed ip internet cable that ed has been damaged in the red sea. This, as the government conducts an investigation into the cable owners alleged ties to the hutu militia. It controls much of the cables that connect europe to the middle east. Plus, alphabets youtube has blocked videos of the hong kong protest in the city just days after a local Court Approved the injunction. Googles Video Networks that it would follow the courts ruling and block 32 versions of the video titled glory to hong kong. While existing laws punish people for playing the song, the Chinese Government has sought to erase it from all platforms. And this company said that is considering an ipo in london in what would be the first sizable listing for the city. The company did not disclose how much it plans to raise. Caroline lets shift our attention towards a key funder, palmer luckey, about how ai and Autonomous Systems are changing on the battlefield. We spoke to him last week, but bloomberg originals host emily chang caught up with him to discuss his mission to tackle legacy defense contractors and the challenge of scaling the tech. Lets take a listen. Right now we are in the higher growth stage. We have done things i am proud of. But i am very aware of the fact that we are not a profitable business, we are living on borrowed time, so its hard for me to feel like i have made it when i know that if anyone can raise money from vcs, it is buy a big office and fill it full of people. The question is are they building the right things and will those things pay off . Caroline you can catch more of the conversation on the circuit with emily chang tonight. In new york and san francisco, this is bloomberg technology. Ed welcome back to bloomberg technology. Caroline lets get you a quick check on the markets. Its record highs, folks, because the macro picture is one of elation cooling, cpi print is what the market wanted to see, for the moment its the nasdaq 100 in the s p 500, hitting global benchmarks. The all country index up 9 10 of 1 . Im looking at it coin, all risk assets wing