With president xi jinping. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. From washington, i am Alisa Parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is Bloomberg Technology. Coming up, Softbanks Vision Fund nears completion. After closing the fund in saudi arabia, what his childhood dream means for Silicon Valley and the u. S. Tax landscape. Ford kickstart its focus on ridesharing and selfdriving with a surprise shakeup. What the new c. E. O. Brings to the table. The markets most valuable player is on track to become the worlds first 1 trillion company according to one analyst. We will catch up with him ahead. Softbank formally announces the first round for the longawaited Tech Investment Fund with more than 93 billion in the coffers. That includes the saudi public Investment Fund as well as apple and sharp. The vision fund is expected to top 100 billion in six months. It will focus on startups in the United States. We are joined by cory johnson. Fundgives him the biggest in all of tech. What does that mean . Cory the biggest fund in all of tech. It is sort of hard to imagine how such a fund at 93 billion can be effectively used. Startups require less cash outside the world of biotech. They will require less cash in the early days of funding. Just finding, let alone nurturing those deals will be hard to do. It is not all cash going into the fund. There is a stake in an executive fund that is part of the contribution to this fund. Giant fund, it is a that will probably be hard to manage. Emily there has been a lot of speculation about why it took so long. What do we know about that . Giantcory i have been hearing0 billion for a long time. They beat me to it. It is all relative. I think raising the largest Venture Capital fund in the history of finance is an amazing feat, especially given the track record of these guys as softbank who work at and suffering has nurtured many companies. Softbank has nurtured many companies. I think the announcement or maybe premature. The goal is astronomical in terms of ambition just to raise the money. To put the money to use is a different ticket. The other question is going to be what the fees will be like for the fund. Will they go to20 or will the Fee Structure be different . They will be sitting on cash a long time before they put the money to work. Emily we talked about the meeting between President Trump and masa where he said a lot of the money would be going towards Tech Innovation in the United States to create jobs. How much Economic Opportunity could this create in the u. S. . Cory i think it is curious where the money is going to be invested. We dont have a notion of that. The fact it is so large suggests softbank may have entre to deals others may not. The real question is where the money will be invested. Will it be invested in the u. S. Or beyond . With this much money and the notion it will be focused on technology, one would imagine it with be invested globally a portion in the u. S. Because it would be hard not to. Emily cory johnson with more context on the vision fund. Thank you so much. With more reaction to the softbank news at a larger perspective on tech investing, we are joined by dr. Kaifu lee, the founder and c. E. O. Who has held executive positions at apple and microsoft. Great to have you back on the show. Billion 100 he going into tech mean for the landscape . How is this going to shake up the competition . We are an earlier stage investor. We usually manage funds in the hundreds of millions of dollars. We began investing in ai and related technologies four years ago. We are strong believers that the future of technology is great. Ai is coming. We are looking forward to softbank being a later stage investor in some companies we and other Venture Capitalists like. Emily a lot of this is going towards ai investments. Could it be too much . Either enough opportunities are there enough opportunities for 100 billion . I think there certainly could be. They have already invested in a Chinese Company raising on the order of 5 billion to 10 billion. When you think about finding another 20 Companies Like that, the money will be used up before you know it. Emily where are the most competitive investments . The top technologies are still in the u. S. And canada. I think china is coming up strong because of the large market and ai knowledgeable people. 43 of the top publications are written by chinese authors. Chinas large market will create a lot of data. Ai is driven by brain trust data. China is coming on strong, currently number two. With a good shot at becoming one of the two superpowers in ai. Emily you gave a fascinating commencement address at columbia where you talked about ai and what it means for jobs. He said in 10 years, all Financial Companies will be turned upside down with ai. Algorithm the ai returned eight times my private anchor. Banker. I hope he is not watching. Emily you going to say you think simple jobs like factory jobs will be bro look be replaced. Who still has a job in this rave new world . I think the creators will have a job, the creators in technology and science but also entertainment. That is a significant portion. I think people in Service Industries who deal with social aspects of services, that will be a set of jobs we have to create. Unlike in the Industrial Revolution where a set of jobs are gone and another set came about through the assembly line, and time we have to deliver create the jobs that relate to social aspects because ai is no good at dealing with people to people. Emily do you see hordes of Unemployed People . Do you think those people will get new jobs that have yet to be created . I think first there has to be a way to redistribute the wealth created to ensure some kind of social welfare and minimum stipend for the people displaced. It is going to take time for training. I think if people are open and inclined to be retrained in the social aspects of the jobs, say bartender, tour guide, concierge, jobs like that, that will be on the rise for the people to people transactions. Emily tech giants from facebook to google, ibm to microsoft, have claimed they are working on ai. Who really is in the lead . I think clearly google is in the lead. With the latest release, they are bringing technology closer than ever to an average engineer with maybe six months learning to be able to do something with ai. I think reducing that learning curve is important. And they are in the lead. It does not mean everyone will automatically use it because i think other giants are working hard. Openlso, i really hope source will come up with a more open solution than the giants because then we become cap divided captivated by their entire ecosystem. I dont think that is good for innovation or the academics. Emily if google is in the lead, who is behind . I think facebook is doing well. Amazon is doing well. Microsoft is doing well. In china, baidu, tencent, and alibaba are doing well. Emily what about apple . Apple made their most recent hire to head ai. I think they should have every reason to do well given they and canlosed ecosystem learn so much about the users, but they started behind. Emily where do you think you will be placing your bets . Financial industry. Our most successful investment in ai right now is in a company that underwrote 30 million lines this year loans this year. I think insurance, banking, investment. We are longterm optimistic about Autonomous Vehicles as well as robotics. Emily your private banker is out of a job. Always great to have you here. A story we are watching. The founder is stepping down from operations of the online streaming service. He is a chairman of the company. It has grappled with a cash squeeze leading to challenges in fundraising and unpaid bills. Coming up, it is a major c. E. O. Shakeup at ford. What it means for the selfdriving car ambitions, next. We are Live Streaming on twitter. Check us out. This is bloomberg. Emily a surprise shakeup at ford. He is out after less than three years as c. E. O. Shares fell 37 during his time in office. The new chief executive, jim in. Ett, is revived steelcase during 20 years as c. E. O. There. He spoke to bloomberg tv and believes hackett can do the same thing at the automaker. I have never seen such a time in our industry where technology, competitors, and everything is converging to drive real change. It is very helpful at a time like that to have a leader who is very experienced in driving transformational change. Fortunately, we have that in jim hackett. Emily joining us now, david welch. Wrong,d fields do especially when it comes to selfdriving cars . What do they think hackett can do better . David the stock prices have been down. Earnings have been down. They have been pulling down the forecast while General Motors is raising a forecast. You are not seeing big Company Stocks down as much. Ford felt a lot of pressure. When you look at the self driving car side of the business, they did not have a clear direction or mission. Those were questions ford wanted answered. G. M. Has units they have acquired. They are testing in san francisco. They have a piece of lyft and our experiment in with putting those in the fleet. They have clear things they want to do with this. They have their own business maven. Ford does not have any of that clearly laid out. I think they want to see some direction. Emily are we expecting job cuts at ford . They announced they would cut 10 of the salaried staff globally. I dont know that they will be cutting more. Costs have gone up in the past two years at ford so you could see more. I think the new c. E. O. Will look at the executive team and costs. You can expect there will be more executive changes and might be more cutbacks as well. Emily one of the Big Questions is whether ford can latch onto the more forwardlooking automakers. Battery making factories are about to arrive in europe. Now daimler wants a piece of the pie. Caroline hyde joins us with more live from london. What do we know about the european factories coming . Caroline they are all pushing in the same direction. This is why daimler broke ground on a half a billion euro plot today. Big fanfare. Angela merkel was there. It is not only about the auto sector pushed for the better trend but also the utility sector as well. Are these juggernauts looking to capitalize on the falling cost of energy storage. It has become a virtual circle as carmakers want to get into the Greener Energy type cars. Meanwhile, the utility makers are looking to be able to store renewable energy. All of them are pushing in the same direction. They will produce more batteries, thereby pushing down the cost in making the whole economy of the thing better and better. Therefore a more virtuous circle. That is why we are seeing the likes of daimler get in. Saidberg researchers have audrey costs could fall 33 in the next four years. This makes electric vehicles perhaps cheaper than normal vehicles as soon as 2023. Emily david, are we thinking giga factories will pop up for more automakers . Seeing a forecast of lithium ion battery production tripling by 2021. There are a lot of cars coming out from german automakers. You look at the one announced today, daimler. I so commercial trucks and luxury cars. Elon musk is making electric luxury cars and planning on commercial trucks. He has a target on their back and they want to do something about it. They will push new vehicles out. B. M. W. Will be putting out electric cars. Every automaker has to do it for regulation. A lot of them are seeing tesla has cool cars. Toward the end of the decade, we will see a lot of luxury cars coming to market. That is what these batteries will go into. Emily will daimler be able to catch up to tesla . Caroline that is the key question. They have a lot of models coming out. They have to please their own politicians. Angela merkel has said by 2030 we want to see 6 million electric vehicles on the road. They have please their own governments at the moment. They have targets of their own. Of all cars 1 5 sold by 2030 being electric vehicles. You take it on by making the battery more economical. We will see the cost by 40 . That is the main cost of the car you are producing. That becomes more cheap and more people are willing to buy this. I think it is interesting we are going to see vw and daimler get in on it. Wanting toe europe double battery making to make ends meet and try to take on the likes of tesla in america but also china and asia which dominates battery making. Emily Caroline Hyde lave in london. David welch with us from detroit. Thank you both. Another story out of europe today, the European Union is investigating General Electric for possibly providing misleading information during a merger review. According to people familiar with the case, regulators are looking into whether g. E. Misled e. U. Officials examining the deal. G. E. Has not commented on the news. Last week, the e. U. Find facebook for misleading behavior. How good has President Trump been for Media Companies . We will pose that question to Mike Thompson next. A feature i want you to check out. Our new interactive tv function on the bloomberg. You can watch us live. If you miss an interview, you can go back and check it out. You can send our producers a message. You can play along with the charts we bring you on air. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Has signed les moonves to a new multiyear 2021. Ct through he will continue receiving his 3. 5 million annual salary plus longterm incentives. He is one of the nations 2021. Highspeed executives having earned over 69 million in 2016. When it expires, he has the option to become a Senior Advisor and form a Production Company through the network. Has beenyork times making news with its own scripts and as a target of President Trump. C. E. O. Ht up with the where they discussed the partnership with social media platforms and the changing landscape of the news industry. We still have a Multifaceted Partnership with facebook, google, snapchat, and so on. On theall experimenting best way of getting journalism to people. I think the major digital questionsare asking about truth and falsehood and their responsibility when it comes to journalism. We are very happy to work with them. At the same time questions about truth and because we want that deep relationship with our readers, the best place we think for enjoying the new york own digitalr destinations as it has been with our physical newspaper. Let me ask you about the rivalry with you and the Washington Post. Is what you are doing replicate about able to be replicated at other newspapers . What do admire about what the Washington Post is doing . Think that story is the story they have to get right. The New York Times has national coverage, great coverage of the art. The New York Times is a much broader coverer of news. Ground. Their home we are happy to take part in the duel. It feels important to be in journalism now. What is great is seeing outstanding journalists competing with each other, not in a cynical way but to get great stories. I think that is what is making this such a wonderful time for journalism. Emily that was New York Times president and c. E. O. Mark thompson with david gura. Apple is on its way to achieving a 1 trillion market cap says one analyst. We will speak to him next. If you like bloomberg news, check us out on the radio. You can listen on the app, bloomberg. Com, and sirius xm in the u. S. This is bloomberg. Alisa i am Alisa Parenti in washington and you are watching Bloomberg Technology. Lets start with a check of your first word news. Michael flynn may have lied in his application for security clearance according to democratic congressman Elijah Cummings who says documents appear to indicate he lied to investigators in 2016. The a. P. Is reporting flynn will invoke his fifth amendment right against selfincrimination. Brazils top court has suspended scheduling a ruling on the president accused of endorsing the payment of hush money to a jailed former lawmaker. The allegation represents a potentially significant blow for him. His administration has lurched from one crisis to another as he took office one year ago. The e. U. Has signed off on a tough brexit negotiating stance. Negotiators plan to maintain a hard line on the u. K. s departure bill and will not discuss the future trading arrangement until there is an agreement on other key issues. Health and Human Services secretary tom price says the u. S. Is disappointed taiwan was not invited to the w. H. O. Key annual meeting. It has been invited as an observer the last eight years. Beijing accuses taiwans government of not accepting the one china principle. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am Alisa Parenti. This is bloomberg. It is just after 5 30 p. M. In washington. 7 30 Tuesday Morning in sydney. We are joined by paul allen with a look at the market. Good morning. Good morning. That could trans