Ed we will talk about the health of the ipo market. Caroline plus, the latest in the media world. Rupert murdoch steps down. That and so much more. We have had the federal reserve, hawkish narrative. We look at the bank of england and they made a as well. The nasdaq is down a quarter of a percent. 10year gilts is pushing up. 06. Will the fed have to hike later this year . The pound is down. 37 . This is a story of dollar strength. After the jobless data, where 2 on bitcoin. What do you have . Ed microsoft is holding an event here in downtown new york we get copilot, later in the show we will bring you those details. Microsoft up by. 2 . Google cloud is going to ditch broadcom by 2027. It is custom solely can, so therefore broadcom is moving down 3. 6 . Cisco is going to 157 per share. Thats a 30 premium on the Closing Price of splunk thats up 21 . So network. Caroline is this a good deal despite the amount . Splunk had been a target for cisco since january 2022, it was rumored they had made an offer it at that point. They work through and 912 month deal but this is what we pointed out for some time. This is strategic for cisco. When you look at what they will do around cloud security. It merges the world between app experiences with the Security Side and fills a big hole in the Security Portfolio that we have pointed out for a long time. Spelunking is the backbone of information centers. And they needed to push the envelope a little more because it was really lacking. Ed this transaction will close in 912 months in the ceo of splunk will join the team. You gave a good explanation of what they bring to cisco. What is splunk . Jim what splunk is named dr. Spelunking, and this is going after data and being able to use search through it. You can search through all of your data and be able to find what is going on inside your environment which is why its so important from an security tool. Its about performance management, whether it be in the cloud as we switch to that environment to manage across that environment. Ed we knew that, we were just checking. Jim youre a smart guy. Ed i dont know about that. Jim chuck thinks it will be 912 months. In terms of regulation, there will be a longer. On other deals. You are starting to see things go for cisco and splunk theres a little bit of overlap. There really isnt much on the Security Side. From the application experience in the security incidents, while cisco is a decent size player, the two combined is still part of this fragmented set of the industry but not an antitrust issue. Caroline what is the Competitive Landscape that splunk goes against . Jim m a can be disruptive to the business being bought. And potentially act as a tailwind for competitors. Data dog has been doing good things and cloud observability. And considered one of the leaders in that observability space. When you stack up what splunk could do for cisco, it does make it a relative competitor in the space. Cisco has a huge reach and they talked about it on the call this morning, about two thirds of splunk of the market where cisco can penetrate their nearly million customers with splunks offerings. Ed thank you for telling us about the deal and where it fits in the landscape. Coming up on the show we will turn to m a to ipos. Jeff thomas will join us next. Caroline lets check on how the ipos are faring. A tiny gain, but is still remaining open. From new york, this is bloomberg. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com caroline we will take you over to a live event that is taking place in london. The global credit forum, they are describing private credit. Credit is important to our viewers and technology. Ed capital is important to any tech company. Apple and meadow returned to the market. I just wanted to remind our viewers, Tech Companies in debt, pay attention. Caroline meanwhile, this comes in a global narrative, when you think of the ipo landscape. Lets get a little tip from abigail doolittle. Abigail we did have ipo pops for arm and instacart. Here is arm giving back its 24 . Down each subsequent day, down 1. 7 mistake. Whether or not this ipo window is healthy . We will see instacart this up. 42 . While we question if these pops are good enough if we look at what happened in that pandemic we had airbnb up, bumble up and polish up as well. The pops are not quite as strong. Have we breached the ipo window . More needs to be seen. Ed sonali said yesterday that the ipos are ending. But thats not quite true. Abigail it will have a lot to do with this macro, the macro environment relative to the fed is not so great. I would also point to back in the day there was a company that ipo in the few months this dog absolutely taint. It was down more than 50 and then it came back in a big way and its up more than 700 . Any takers on why this is . Ed i wasnt around then. Abigail it was meadow. Previously known as facebook had a few difficult first few months. But when we look at what theyve done since that ipo, not so shall be given last year. It really came back. Its too early to say whats happening with these ipos. Ed thats why people say they are a longterm investor. Bloombergs abigail doolittle. Lets stick with the ipo market and bring in our next guest. It has been a busy few days with three listings, some on the nasdaq and some on the new york stock exchange. Jeff, i want to start by asking you, we say here on Bloomberg Technology that the euphoria of opening up was shortlived is that your conclusion as well . Jeff Companies Look at the ipo is a moment in time. If you look at what is happening this week, we have a hawkish caused by the fed. They paused rates but had hawkish overtones and that will drive down some of these stocks. We have some Great Companies to get out of the market in q4 in the first half of next year. There is a lot of reasons to be optimistic. Indices are well up for the year and Companies Set of raise capital in 2020 and 2021 have Pretty Healthy evaluations. They will need to raise capital so that will be a choice, do they want to do it privately or in the public markets. They expect many will come to the public markets. Caroline last week on the day of the arm listings in the f1 filings, how many of those companies will have to use the play we have just seen cornerstone investors to get that pop and then already at the downside. Jeff companies will want these longterm investors. When you look at the opening cross, we are bringing together buyers and sellers. The only people who can sell are people that took advantage of the ipo. That is why we see this stabilization. A lot of times its fleshing out the sellers and those who are looking for the stock in the long term shareholders they bring through the ipo. Caroline im interested for who wants to see that demand . Is it people with retail interest or larger institutions that want to take that risk . Jeff its the Institutional Investors i will be the biggest buyers of ipos. If you looked at how 2021 performed, thats how a lot of the investors were hoping to. They will be looking for ways to differentiate which means he will have to take some risk. We see a lot of demand on the buyer side. When Companies Come to the market they adjust evaluation to meet the expectation of the market. And also possible growth versus growth at all costs. Ed that theres been any comment it has been the quantifying of the small flows. Some of these ipos seemed over prescribed . Why it is theyre the same kind of demand three days from the training in . Jeff there were always be buyers at different price levels. Companies are laying out their vision for the future. They say heres where we can get to in terms of revenue, earnings so the investors will be watching and the first few days but also the first few quarters. Can they come out of the gate strong . Can they get their numbers in the first few quarters . And that will differentiate the start up market. Caroline we talked about longterm investors. Thank you so much, coming up, we will go back into the world of product launches. Microsoft will be rolling out is ai assistant. We could learn what the price point might be. Ed take a listen to what the microsoft president had to say about a yard regulation at the United Nations in new york city. This is bloomberg. Is the concern that ai will go bad, out of control and a threat to humanity. When you step back and think about it there are specific use cases where one should be thinking about that. Enabling ai to automate and control the electrical grid or the water supply or driverless cars. When you think about it from that perspective we would say, that needs to be regulated and somebody should have to get a license to do that. Ed Japanese Electronic Company toshiba is clearing a new path to go private and receive a 13. 5 billion buyout from a private equity firm that now holds 8 of equity shares. They will squeeze out the remaining shareholders to take control of the comp the. Google is thinking of dropping qualcomm. Cap google will set out a gold to move away from broadcom after the cost of its type. In the last few minutes google issued a statement saying it sees no change in its relationship with broadcom. Nvidia is betting on india becoming a key country for ai. Caroline this week we have had so much, google and others in a great ai offerings. The company will start rolling out its ai assistants and it will be widely available. We will be bringing in now, the managing director. How will they be able to integrate technology that quickly into its own software . It shows us that microsoft has a timeline. We are talking 40 years until office 365 copilot comes out. Microsoft is clearly moving quickly. There are two things that really come out for this for me. Microsoft is integrating all of these aspects. There is an integrative ai experience across microsoft products. The second thing is, how is microsoft able to move so fast . They had a huge head start because they invested in openai back in 2019. Microsoft was thinking about genitive ai before chatgpt became a household name. Ed you pointed out that they are integrating their existing platforms. Microsoft is always been really good at selling software that others give away for free. Do they grow sales by doing this , this investment nai . Rishi there will be certain areas where they will not directly charge for generative ai. It will be about gaining market share. When you think about the 365 copilot that is something they will distinctly charge for. A lot of these other ai open source ai, its based on a consumption model. I think this translates to better numbers for microsoft. Microsoft is already doing more than half 1 billion of generative ai revenue to quarters later and that number will probably get to the 2, 5, 10 billion before we know it. Caroline the second half of the fiscal year where this will wrap up. Thank you so much. Coming up we will talk about the regulation of ai. We will be digging into it with joe white. Ed check this out, and the month of august you see the revenue dropped 12 . As we worry about iphone sales, this is bloomberg. Every business deserves a great deal. Thats why comcast business is launching the mobile made free event. With our business internet, new and existing customers can get one year of unlimited mobile for free. Its our best internet. Powered by the next generation 10g network and with 99. 9 reliability. Plus one line of free mobile for an entire year. Its the mobile made free eventhappening now. Get started for just 39 a month. Plus, ask how to get one free line of unlimited mobile. Comcast business, powering possibilities. Caroline welcome back to Bloomberg Technology. Ed lets get a quick check on the markets. The fed and economics is driving these markets. The nasdaq 100 is down 100 is down 1. 3 . The fed paused rates and we get Economic Data that reinforces this idea that the fed will leave rates higher for longer. Ai is a different story. Microsoft and amazon. Microsoft got much of its gain because of its release of the ai products. Amazon is really accelerating down 3. 5 . It announced its generative ai product. It really didnt do much in persuading investors to buy right now. The idea that they brought ai to their hardware offering. Caroline lets talk about ai bleeding into everything. At the uns general assembly, you have Climate Change but we have also been having more tech issues. They called on countries to regulate Artificial Intelligence so it does not govern us. Former Prime Minister tony blair spoke to our david westin. Aa will change everything, it should change the way government and Public Services operate. It has enormous potential to change health care for the better. But there is risk. Caroline all of this comes as we prepare ourselves for the u. K. To hold its first global ai summit. Lets talk about the ai presence and u. K. You are in san francisco, trying to export the u. K. And the seller cant tech giant saying this is what the u. K. Has to offer. Why is the u. K. So focused on putting in stake in the ground when it comes to ai . The ua, the u. K. Has an enormous amount of research around ai. The reason ai will help unleash the positive change in the world. To get a common understanding will keep us safe with this technology. Ed does the u. K. Generate nearly genuinely believe that the ship has sailed with ai or is it moving quickly to catch up . I think it has a leadership position and it. A lot of fundamental research is being done in the u. K. We are seeing that nai, talent is extraordinary in the u. K. Has quite a leap globally and can bring countries across the world to speak about some of these risks and issues while still having its own position in the ai race with Companies Based in the u. K. Ed Cambridge One is one of the biggest state agencies as well as in video nvidia. I know u. K. Has barcode with these companies have you spoken with nvidia about the work they plan to do in the u. K. . Joe we do talk with Platform Providers and chip suppliers to talk about the u. K. s needs and may need to increase the computer capacity we have in the u. K. We are looking for an ai supercomputer in the Ai Task Force for ai safety research. Ed jeremy hunt decided to invite the chinese delegation to the ai safety meeting do you agree with that . Joe i think it will be a global benefit and challenge and it is technology that will be broadly accessed in the u. K. Recognizes for us to get the benefits we want we have to have a baseline of technology. We have invited china to the summit. Its up to them to determine if they will come and engage. There are common issues we all agree on in the u. K. Can bring parties together to reach that baseline. Caroline i was talking yesterday about ai regulation, and he almost called it her friend see. You have the g7 meeting in november and in japan the hiroshima ai process. You just had the government convening with ai ceos. Is there a rush of discussion with nothing happening . Joe the u. K. Is in touch with all of these organizer of all these events. When sunak agreed with biden it was based on white house commitments and the specific details of the risk and challenges. Things like the risk posed by frontier models. This will build on the promises made by the white house and how its being operationalized by the companies. Caroline its all coming back to regulation and where does the u. K. Fit within that . You have seen china struggle with easy regulation. You have the stricter eu pushing regulation through quickly and then you have seen a cma flipflop. How do you see Tech Companies viewing u. K. Regulations . Joe it has a real strength as regulators. Thats why we see sensible, and gazed regulation. We have independent regulators. The u. K. s history and process of law and engagement, you have seen this articles published this year. There will be specific ai regulation issues in that sector and it will be our ability to adapt with nai. Its not that we need to create stricter rules that will prove to be out of date quickly. Ed you have a developing position from the u. K. And an outgoing message from san francisco. What is the biggest question you get from them . The inbound, about what the u. K. Should offered . Joe the u. K. Is the first natural expansion point from the u. S. The u. K. Is the first place chosen to go into. I think folks see the u. K. Is the first Natural Choice externally. They do see the u. K. Is having a fantastic tech sector thats valued at more than one trillion. They recognize the talent and the regulatory capacity there so they are keen to see how the u. K. Will develop its position there. Ed joe, we really appreciate having you on Bloomberg Technology. We will be joined by macon choice and kirsten green for more on that conversation, coming up next. This is Bloomberg Technology. Caroline the joy of attackassistant. Siri, alexa. With recent ai advancements, we havent ai personal assistant. They phrased 25 million on thursday. Megan, its great to have you. I start with you, weve been talking about personal assistance, like copilot they are being run and build on openai underlying traditional models. What makes tears different . Megan what makes duckbilled unique is be combined two things, the best of humans to add nuance to your tasks nai tooling that allows efficiency and the scale of the underlying legwork. The personal assistance are put to task and they use custom ai tooling with Large Language Models and our own fine tuning to fulfill tasks. But that allows us to do is tackle the long to do list, where ai comes against limits a human gets online. Caroline you have made the name back in companies that blew out