Meta Settles Federal Social Media Addiction Trial | Bloomberg Tech 8/26/2026

♪ >> BLOOMBERG TECH'S LIVE FROM THE HEART OF SILICON VALLEY WITH ED LUDLOW IN SAN FRANCISCO. >> THIS IS BLOOMBERG TECH. META AGREES TO SETTLE ALIEN MARTIN SOCIAL MEDIA TRIAL. NVIDIA REPORTS AFTER THE CLOSING BELL TODAY. WHAT INVESTORS WILL BE LOOKING FOR INCLUDING MORE THAN $80 MILLION IN DATA CENTER REVENUE ALONE. AND WE STICK WITH DATA CENTERS AS WE ARE JOINED BY THE SOUTHERN COMPANY CEO TO DISCUSS THE AI BOOM AND ITS IMPACT ON THE AMERICAN GRID. THERE IS A TOP STORY OUT THERE AND IT IS META GOING TO SETTLE A LANDMARK TRIAL. THE COMPANY WILL PAY UP TO $18 BILLION OVER 10 YEARS. IT WILL IMPOSE NEW RESTRICTIONS ON YOUNG USERS INCLUDING NIGHTTIME BLOCKS AND DAILY USE LIMITS FOR UNDER 18. WE WILL DISCUSS THIS SPEND A LOT MORE LATER IN THE HOUR WITH ONE OF THE ATTORNEYS GENERAL WHO SUED META. NVIDIA REPORTING TODAY AFTER THE CLOSING BELL. LET'S BRING IN OUR SEMI CONDUCTOR REPORTER. THIS IS THE CATALYST FOR THE MARKET. THE EXPECTATION IS THIS WILL BE GOOD. WE WILL WANT TO BE HEARING IF IT IS GOOD FOR A LONG TIME TO COME. >> THERE IS NO CONCERN ABOUT THE NUMBERS IN THE SHORT TERM. $3 BILLION OF REVENUE FOR THE QUARTER. NOBODY IS CONCERNED. ALL OF THE DEMAND SIGNALS ARE STRONG. BUT THERE ARE OTHER FACTORS THAT HAVE CREPT IN. ED: THAT WOULD BE IN THE FISCAL THIRD QUARTER. WHEN NVIDIA GUIDES ITS FIRST-EVER QUARTER IN EXCESS OF $100 BILLION OF REVENUE. BUT THE BAR IS SO HIGH. ONE OF THE QUESTIONS THAT NVIDIA AND JENSEN HUANG ARE LIKELY TO GET? >> IS A COMPANY THAT IS IN ONE QUARTER WILL HAVE MORE REVENUE THAN ITS NEXT TWO RIVALS COMBINED IN A YEAR. AND YET THAT IS NOT ENOUGH. WHAT WE WANT TO KNOW NOW IS WHAT IS GOING ON WITH THE BALANCE SHEET? WHAT WILL BE THE FALLOUT FROM ALL OF THESE DEALS THEY HAVE DONE? ED: THE CIRCULAR FINANCING. >> EXACTLY. ED: YOU WILL HAVE A VERY BUSY AFTERNOON. THANK YOU VERY MUCH INDEED AND I'M SURE WE WILL HEAR FROM YOU THROUGHOUT THE DAY. I WANT TO GET MORE OF THE EXPECTATIONS FROM NVIDIA. THERE IS A RANGE OF ESTIMATES ON THE STREET. 95 BILLION DOLLARS ON THE HIGH END. IS IT EVEN MATTER IF THEY HAD THAT HIGH-END? >> IT ALWAYS MATTERS. IT HAS BECOME PREDICTABLE IN TERMS OF NVIDIA BEATING AND RAISING SO GETTING AT OR ABOVE THE HIGH END OF THAT $3 BILLION BEAT AND $3 BILLION PLUS GUIDANCE ABOVE IS VERY IMPORTANT IF THE STOCK IS GOING TO HAVE A HOPE OF GOING HIGHER AND POTENTIALLY SPARKING A BIT OF A REBOUND IN SOME OF THE SEMICONDUCTOR STOCKS IN THE NEAR FUTURE. ED: THE GUIDE FOR THE FISCAL THIRD QUARTER, THE TIME WE ARE IN RIGHT NOW, THE STREET ON A CONSENSUS BASIS, 10 $4 BILLION. I WAS READING YOUR NOTES AND YOU THINK EVEN IF THEY GO WAY BEYOND THAT UP TO $109 BILLION, THAT MIGHT NOT BE ENOUGH. >> THAT IS ALWAYS THE QUESTION. THEY HAVE TRADITIONALLY EXCEEDED THE GUIDANCE BY A FEW BILLION DOLLARS. I THINK THAT WOULD PUT YOU AT THAT LEVEL. FOR THE TOTAL REVENUE. I AM HEARING THAT ANYTHING ABOVE GETS THE STOCK MOVING UP VERY QUICKLY. I THINK IT IS FINE. BUT AS YOU HAVE NOTICED, THE STOCK REALLY HAS NOT MOVED THE DAY AFTER THE LAST FOUR OR FIVE EARNINGS. SO I WOULD SAY THAT TO REALLY SPARK A REBOUND, IT WILL TAKE A LITTLE BIT MORE THEN YOU ARE SEEING. THIS COULD BE A STOCK THAT COULD REALLY OUTPERFORM. A LOT OF PEOPLE ARE WATCHING THIS FOR WILL TO BE SOME CATALYSTS AND SIGNALS THAT THEY WILL GIVE US THAT CAN SUGGEST THIS COULD BE BIGGER IN THE NEXT COUPLE OF QUARTERS VERSUS WHAT THEY HAVE OF THE LAST 12 MONTHS? ED: THERE IS A TECHNOLOGY STORY HERE. THE QUESTION OF WHETHER IT BECOMES A CATALYST. THE LATEST GENERATION IS IN FULL PRODUCTION. BUT IT DID NOT SHIP IN THE JULY QUARTER. THE ADOPTION OF THAT SHIFT, HOW CLOSELY ARE THE PHONE CALLS YOU ARE TAKING MODELING FOR THAT? >> THAT IS A GOOD QUESTION. THEY ARE RIGHT AT THE BEGINNING OF THIS NEXT PRODUCT CYCLE. CUSTOMERS ARE ANXIOUSLY WAITING TO GET THEIR HANDS ON THAT PRODUCT. IT WILL START SHIPPING AND MODEST VOLUMES IN THIS OCTOBER QUARTER BUT REALLY KICKED IN AND THE FOLLOWING QUARTER THAT ENDS IN JANUARY AND INTO THE FIRST PART OF NEXT YEAR. I THINK THE DEMAND WELL EXCEEDS SUPPLY. THEY WILL GET QUESTIONS AROUND THE SUPPLY CHAIN AND THE ABILITY TO RAMP UP VOLUME PRODUCTION. THERE MIGHT BE SOME QUESTIONS AND DEBATES ON IF THE DEMAND SHIFT WILL TAKE AWAY ANY OF THE DEMAND FOR THE EXISTING BLACKWELL PRODUCT. I THINK DEMAND IS SO GATED SUPPLY SO CONSTRAINED THAT PEOPLE WILL BUY WHATEVER THEY CAN GET THEIR HANDS ON. IT WILL NOT REALLY BE AN ISSUE. ED: SO MANY PEOPLE APPOINT TO THE RIGHT OF OLDER GENERATION COMPUTE. AND SAY BLACKWELL TRANSITIONING, IT ALL GETS USED. JENSEN HUANG LOVES FOR GROUND NUMBERS. WHAT WOULD HE HAVE TO SAY ABOUT THE NEXT FEW YEARS? ORIENT AGGREGATE WHAT THIS WILL LOOK LIKE FOR NVIDIA OVER A LONG TIME? >> THAT IS KIND OF THE DEBATE THAT I HAVE AND I GET THE FEEDBACK AND QUESTIONS FROM INVESTORS IS WILL HE RAISE THE ORDER BACKLOG AND ORDER BOOK NUMBER THEY HAVE GIVEN IN THE PAST FOR THE NEXT COUPLE OF YEARS TO SOME HIGHER NUMBER THAT WOULD GET INVESTORS EXCITED? THE FEEDBACK I'M GETTING IS THEY WILL NOT USE THIS EARNINGS CALL TONIGHT AS A FORUM TO RAISE THEIR LONGER-TERM PROJECTIONS. THEY WILL PROBABLY WAIT UNTIL THEIR OCTOBER EVENT WHICH I BELIEVE THIS YEAR IS TAKING PLACE IN GERMANY TO PROBABLY GIVE A A LONGER-TERM UPDATE ON THE FORECAST. I DON'T WANT TO GET PEOPLE TO EXCITED BUT I THINK YOU WILL PROBABLY NOT GET IT TONIGHT. EVERYTHING WILL SOUND GREAT. I THINK THAT COMES AT A DIFFERENT EVENT WHICH IS MORE PRODUCT AND CUSTOMER RELATED IN OCTOBER. I THINK THE CATALYSTS ARE SO GREAT. YOU JUST NOT GOING TO GET A BAZOOKA TONIGHT THAT MAKES EVERYBODY GO OUT IN RUSSIAN BY IMMEDIATELY BUT I STILL LOVE THE SET UP INTO THE END OF THIS YEAR. ED: THERE HAS BEEN SOURING SENTIMENT OF AMERICAN STORED DATA CENTERS. DO YOU EXPECT ANYONE TO ASK JENSEN HUANG ABOUT THAT OR FOR ANYONE TO SAY ANYTHING ABOUT THAT? >> IT IS REALLY HARD FOR HIM TO SPEAK SPECIFICALLY TO THE STATE AND LOCAL GOVERNMENTS THAT WANT TO RESTRICT OR LIMIT THE BIT OF DATA CENTERS. HE HAS BEEN AN ADVOCATE AND A CHAMPION FOR AI SINCE DAY ONE. I THINK WHAT HE WILL SPEAK TO IS THE BENEFITS AND EFFICIENCIES AND COST SAVINGS AND THE VALUE THAT AI BRINGS TO INDIVIDUALS, EMPLOYEES, AND THE ECONOMY BROADLY. I THINK THEY ARE DOING ALL THEY CAN TO SOFT IN SOME OF THE CONCERNS BUT THERE IS ONLY SO MUCH THEY CAN DO. OTHER THAN HELP FINANCE AND FACILITATE THE BUILDOUT. THEY ARE NOT THE ONES ACTUALLY BUILDING THEN. THAT COMES DOWN TO THE HYPERSCALERS AND WHAT THEY ARE WILLING TO CONCEDE TO THE GOVERNMENT AND THE CONSTITUENTS THAT LIVE IN THESE REGIONS WHO ARE WORRIED ABOUT THE RISKS ASSOCIATED WITH DATA CENTERS. I DON'T KNOW WHAT HE CAN SAY OTHER THAN THERE IS SO MUCH BENEFIT WE ARE GETTING FROM AI, IT IS WORTH ANY OF THESE POTENTIAL PERCEIVED CONCERNS. ED: THE MANAGING DIRECTOR AT MIZUHO SECURITIES. THANK YOU VERY MUCH FOR COMING UP IN THE SHOW, THE WEST ATTORNEY -- WEST VIRGINIA ATTORNEY GENERAL JOINS US FOR AN EXCLUSIVE INTERVIEW ON THE META-SETTLEMENT WITH SITTING -- 29 STATES. ♪ ♪ ED: META HAS AGREED TO SETTLE A LANDMARK SOCIAL MEDIA CASE. THE COMPANY SAYS IT WILL PAY OF THE $80 BILLION OVER 10 YEARS AND IMPOSE NEW RESTRICTIONS ON YOUNG USERS INCLUDING NIGHTTIME BLOCKS AND DAILY USE LIMITS. AS WELL AS USING STRONGER AGE VERIFICATION TOOLS. IT WAS SUED BY 29 STATE ATTORNEYS GENERAL FOR ALLEGED VIOLATIONS OF CONSUMER PROTECTION AND PRIVACY LAWS. ALLEGATION THE COMPANY DENIES EVEN IN THE SETTLEMENT. ONE OF THOSE ATTORNEY GENERAL'S JOINS US NOW. THANK YOU FOR YOUR TIME. THEY START WITH YOUR GENERAL REACTION TO THE SETTLEMENT OF WHAT YOU THINK IT INDICATES? >> I THINK THE FIRST THING I NEED TO BE MENTIONED AS THIS IS A BIPARTISAN SETTLEMENT. WE SEE SO FREQUENTLY AND WASHINGTON HOW POLITICS GETS IN THE WAY OF LEADERS TAKING BOLD ACTIONS TO PROTECT AMERICANS AND DO WHAT IS RIGHT FOR THEIR CONSTITUENTS AND THE PEOPLE. A HUGE THANK YOU TO THE PEOPLE OF WEST VIRGINIA. WE WORKED A LOT ON THIS CASE. THE REPUBLICAN ATTORNEYS GENERAL IN KENTUCKY AND TENNESSEE IS THE OIL AS THE DEMOCRATIC ONES IN CALIFORNIA COLORADO REALLY LEAD THE WAY ON THIS. THIS IS A REMARKABLE WINDOW INTO HOW BIPARTISAN POLITICS CAN WORK. YOUR INTRO HOW THE SETTLEMENT BROKE DOWN IS INCREDIBLE. THIS IS A $17 BILLION GLOBAL SETTLEMENT THAT WILL BE PAID OUT OVER ABOUT 10 YEARS. MOST IMPORTANTLY, WEST VIRGINIA WILL UTILIZE THE SHARE THAT WE WILL RECEIVE TWO VERY GOOD USE TO MAKE SURE THAT CHILDREN AND PARENTS HAVE EVERYTHING THEY NEED IN A VERY TRYING TIME TO BE A PARENT. THE INJUNCTIVE RELIEF IS REALLY WHAT IS SO REMARKABLE HERE. WHAT YOU ARE SEEING IS TECH COMPANIES ARE RECOGNIZING THAT THEIR PRODUCTS CAN AND ARE DANGEROUS TO CHILDREN. THEY NEED TO BE DOING MORE TO BE COGNIZANT OF THAT. TO ADMIT THAT. THAT THEY HAVE THE TOOLS TO MAKE IT BETTER. WE ARE REALLY EXCITED ABOUT WHAT THE FUTURE LOOKS LIKE FOR CHILDREN IN THIS COUNTRY WHO USE SOCIAL MEDIA PLATFORMS WHICH IS BASICALLY ALL OF THEM AND WHAT THIS LAWSUIT WILL DO TO MAKE THEIR LIVES A LITTLE EASIER. ED: IF WE CAN JUST CONTINUE WITH THE FINANCIAL SETTLEMENT FOR A MOMENT, THERE IS A DISCREPANCY. THE COURT FILING SAYS IT WAS NEAR $17 BILLION. MEDA IS SAYING UP TO 18 BILLION. THERE COULD HAVE BEEN A SEPARATE SETTLEMENT WITH ANOTHER STATE. COULD YOU SHED LIGHT ON THAT? >> ON A MUCH ON THE TEXAS SETTLEMENT. THE NUMBERS ADD UP. I KNOW THE ATTORNEY GENERAL IN TEXAS VERY WELL. HE IS A REALLY GREAT GUY. I'M SURE HE DID THE BEST BECAUSE OF THE PEOPLE OF TEXAS AND ENSURE THEIR SETTLEMENT IS INCREDIBLE. IF THE NUMBERS ARE AT THAT LEVEL, IT WOULD MAKE AN ENORMOUS AMOUNT OF SENSE FOR THAT BILLION DOLLARS GOING TEXAS TO BE ADDED TO THE PRESS RELEASE. ED: DID YOU ACHIEVE WHAT YOU WANTED TO THROUGHTHROUGH THE COURT SYSTEM? >> YES. YOU CAN'T REALLY SEPARATE THOSE TWO THINGS. WE DID ACHIEVE THIS THROUGH THE COURT SYSTEM. WHAT WE ACHIEVED WAS A CURVE BECAUSE WE WERE ABLE TO PUT SUFFICIENT PRESSURE ON META DURING THE TRIAL PROCESS. IT IS IMPORTANT TO REMEMBER THIS HAPPEN SORT OF SHORTLY AFTER THEY PRESENTED THEIR CASE. WHAT THEY UNDERSTOOD WAS THEY WERE IN A REALLY BAD POSITION IF THIS CASE WOULD TO A JURY. JUST BECAUSE A JUDGE DID NOT MAKE THIS DECISION OR JURY DID NOT MAKE THIS DECISION DOES NOT MEAN IT ISN'T RESULT OF THE INCREDIBLE WORK OF THE STAFF'S OF THOSE FOUR ATTORNEYS GENERAL. INTERESTINGLY ENOUGH, ALL OF THE STAFFS OF THE SIGNATORY STATE, SO MY TEAM WORKS EVERY SINGLE DAY WITH THE TEAMS IN CALIFORNIA AND TENNESSEE AND KENTUCKY AND CALIFORNIA AND RHODE ISLAND AND LOUISIANA, YOU NAME IT. OUR STAFFS ARE ALL VERY CLOSE AND WORK TOGETHER ON A LOT OF THESE ISSUES. THIS IS A RESULT OF THE COURT PROCESS AND WOULD NOT HAVE HAPPENED BUT FOR THE FACT WE WERE WINNING THIS LAWSUIT AND META KNEW IT. ED: WE ARE LIVE ON BLOOMBERG TELEVISION AND RADIO. THIS IS "BLOOMBERG TECH." WE ARE SPEAKING TO ATTORNEY GENERAL JB MCCUSKEY. A PART OF THE SETTLEMENT, $5 BILLION APPROXIMATELY IS HELD BACK BY META, CONTINGENT ON TIKTOK AND YOUTUBE ADOPTING THE SAME FRAMEWORK THAT THEY HAVE AGREED TO. WE CAN GET INTO THE SPECIFICS OF THE FRAMEWORK. AT THIS EARLY STAGE, HAVE YOU ANY INDICATION OF TIKTOK AND YOUTUBE'S CONDITIONS AND ATTITUDE TOWARD FOLLOWING THAT FRAMEWORK? >> I HAVE NOT HAD ANY DIRECT CONVERSATIONS WITH EITHER OF THOSE TWO COMPANIES. I WOULD IMAGINE THERE IS A LITANY OF LITIGATION COMING AGAINST THEM IN THE COMING MONTHS AND YEARS TO MAKE SURE THAT PART OF THE SETTLEMENT IS ACCOMPLISHED. I THINK IT IS REALLY A NOVEL APPROACH. TO THE FOLKS THAT CAME UP WITH THIS IDEA ON HOW TO SORT OF LINK THESE TWO THINGS, WHAT IS IMPORTANT ABOUT THAT IS KIDS USE ALL THREE OF THESE PLATFORMS AND WE BELIEVE THE INJUNCTIVE RELIEF, THE THINGS WE TALKED ABOUT FROM THE NIGHTTIME CAPS AND THE HOURLY BREAKS AND THE 50 MINUTE BREAK EVERY HOUR -- THESE ARE REALLY IMPORTANT THINGS. WHAT WE WANT TO MAKE SURE IS THAT THESE OTHER GROUPS, THESE SMALLER COMPANIES ARE IMPLEMENTING THOSE SAME TWO THINGS. IT ACTUALLY GIVES US INCENTIVE TO MAKE SURE OUR CHILDREN ARE BEING PROTECTED IN THE SAME WAYS ON THOSE PLATFORMS AS THEY ARE ON META, AND IT GIVES META THE INCENTIVE TO MAKE SURE THEIR COMPETITORS ARE ALSO FOLLOWING THE SAME GUIDELINES WE PLACED IN THEIR LAB WITH THIS SETTLEMENT. IT REALLY IS A MASTER CLASS IN HOW TO SETTLE A LAWSUIT AND HOW TO MAKE SURE BOTH SIDES HAVE SKIN IN THE GAME. ED: MY UNDERSTANDING IS TIKTOK IS A CASE STUDY I THINK AROUND 15 DIFFERENT AG CASES THAT ARE NOT CONSOLIDATED AND YOUTUBE AND SNAP, SMALLER NUMBER THAN THAT. >> JUST YESTERDAY, SNAP WAS SUED BY THE GREAT ATTORNEY GENERAL OF PENNSYLVANIA DAVE SUNDAY. I BELIEVE THESE CASES ARE COMING. ED: HOW DOES THAT FIT IN AND HOW AGGRESSIVE WILL THIS COALITION OF STATES BE IN SAYING, WE HAVE DONE THIS WITH META, WE WANT YOU TO FOLLOW SUIT IN THIS FRAMEWORK THAT META HAS AGREED TO ADOPT? >> I WOULD SAY VERY AGGRESSIVE. WHAT WE SEE HERE IS THE SUCCESS WE HAVE HAD IN THIS META A BLUEPRINT FOR HOW TO BE SUCCESSFUL WITH OTHER SIMILARLY SITUATED TECH COMPANIES. THE HARM HAPPENING TO CHILDREN IS THE SAME AND IT IS FOR THE EXACT SAME REASONS. SO IT HAS ALWAYS BEEN OUR GOAL TO MAKE SURE EVERY PLATFORM PROTECTS CHILDREN IN THE SAME WAY THAT META IS GOING TO BE PROTECTING CHILDREN BASED UPON THEIR WILLINGNESS TO CHANGE THEIR PLATFORM BASED ON THE PRESSURE WE PLACED ON THEM IN THIS LITIGATION. ED: I WANT TO GO INTO SOME OF THE SPECIFICS. THE MAINSTAY OF IT OR LIMITS ON THE USE OF THE TWO PLATFORMS, INSTAGRAM AND FACEBOOK, BY 13-YEAR-OLD TO 17-YEAR-OLDS. IN ONE EXAMPLE, TO OUR DAILY LIMIT WHERE A TEEN CANNOT EXCEED THAT, IT WOULD REQUIRE PERMANENT -- PARENTAL PERMISSION FOR A TEEN IN THAT AGE BRACKET TO USE THE PLATFORMS MORE THAN TWO HOURS. HOW CONTINGENT IS THE SUCCESS OF THIS INITIATIVE ON THE PARENTS BUYING IN WHAT META HAS AGREED TO DO? >> I THINK YOUR CONTINGENT. IN THIS COUNTRY, ONE OF THE THINGS THAT IS PARAMOUNT IS PARENTS DO AND ALWAYS WILL HAVE THE BEST INTEREST OF THEIR CHILDREN AT HEART AND THAT THE GOVERNMENT SHOULD BE DOING EVERYTHING IN ITS POWER TO GIVE PARENTS THE TOOLS TO BE ABLE TO RAISE THEIR CHILDREN IN THE WAY THEY WANT. WHAT WE SEE WITH SOCIAL MEDIA PLATFORMS IS THERE IS A DIVIDE BETWEEN THE UNDERSTANDING OF THEM BETWEEN THE CHILDREN AND THEIR PARENTS. I HAVE AN 11-YEAR-OLD DAUGHTER AND A NINE-YEAR-OLD DAUGHTER, BOTH OF WHOM USE FACEBOOK, YOUTUBE. TO BE FAIR, THEY KNOW WAY MORE ABOUT HOW TO USE IT AND WHAT THEY CAN DO ON IT THAN I DO. IT IS INCUMBENT IN THIS WAY THE GOVERNMENT SORT OF BRIDGE THE GAP AND ENSURE PARENTS WHO MAY NOT BE ABLE TO UNDERSTAND OR USE THE TECHNOLOGY PROPERLY ARE PROTECTED -- THEIR CHILDREN ARE PROTECTED AT THE EXACT SAME TIME. WHAT WE SEE HERE IS A WAY FOR PARENTS TO BE ABLE TO DO WHAT IT WAS THEY WANTED TO DO IN THE FIRST PLACE AND WERE IN MANY INSTANCES WERE UNABLE TO. ED: ATTORNEY GENERAL, WE HAVE HEARD FROM META'S LEGAL OFFICE THIS CJ MAHONEY. I WANTED TO PLAY A LITTLE BIT OF WHAT WAS SAID. >> THIS FRAMEWORK ONLY WORK OF ALL OUR PEERS JOIN US. BECAUSE TEENS MOVE FLUIDLY ACROSS DOZENS OF APPS, AND WE NEED AN INDUSTRYWIDE SOLUTION. WE THEREFORE CALL ON OUR INDUSTRY PEERS, TIKTOK AND YOUTUBE, TO IMPLEMENT THIS NEW FRAMEWORK RIGHT AWAY. ED: I THINK WE NEED TO KEEP TALKING ABOUT THIS PART OF THE STORY. META IS SAYING WE WANT TO SEE OUR PEERS PARTICIPATE IN THIS AND THEY ARE -- WITHHOLD SOME OF THE PENALTY THEY HAVE AGREED TO PAY UNTIL THAT IS THE CASE. ATTORNEY GENERAL'S SIGN LIKELIHOOD THAT YOU SEE THAT HAPPENING? >> I CAN'T SEE THE SCREEN BUT THROUGH MY EARPIECE, THAT CERTAINLY SOUNDED LIKE AN AI VIDEO. I THINK IT IS VERY LIKELY. OUR OFFICE AND MY TEAM OF LAWYERS WHO WORKED ON THIS CASE AND I ARE VERY BULLISH ABOUT THE OTHER SOCIAL MEDIA COMPANIES ARE ADOPTING THIS BECAUSE HERE IS THE THING, ALL OF THESE THINGS COST MONEY AND KIDS ALWAYS NEED MONEY FROM THEIR PARENTS. AND SO THEY WILL -- IN MY OPINION, THEY WILL BE MARKET ABERRATION IF THEY AREN'T PROVIDING THESE KINDS OF PROTECTIONS TO TEENS. I THINK IN MANY RESPECTS, IT IS -- THEY SHOULD WANT TO IMPLEMENT ALL OF THESE SAFETY PRECAUTIONS NOT ONLY BECAUSE THEY ARE GREAT FOR KIDS WHO ARE THEIR CUSTOMERS, BUT BECAUSE THEY AREN'T GOING TO WANT TO BE SEEN AS A SOCIAL MEDIA PLATFORMS THAT IS THE ONLY SOCIAL MEDIA PLATFORMS LEFT THAT IS STILL HARMING TEENS IN THE WITH THIS LAWSUIT OUTLINED. ED: WE ARE LIVE ON BLOOMBERG TELEVISION AND BLOOMBERG RADIO, SPEAKING TO WEST VIRGINIA ATTORNEY GENERAL JB MCCUSKEY. THERE IS AN INDEPENDENT AUDITOR THAT WILL MONITOR COMPLIANCE. WILL THAT MECHANISM HAVE TEETH? >> YES, THAT MECHANISM WILL HAVE TEETH BECAUSE IT WILL BE IN CONSTANT COMMUNICATION WITH THE ATTORNEY GENERAL'S WHO REACHED THIS SETTLEMENT. AND ALL OF US ARE STALWART IN THE FACT THESE CHANGES NEED TO BE IMPLEMENTED. WE ARE GOING TO HOLD META'S FEET TO THE FIRE BECAUSE THEY MADE SOME INCREDIBLE PROMISES, THINGS WE THINK WILL MAKE A DIFFERENCE IN CHILDREN AND PARENTS LIVES ALL ACROSS THIS COUNTRY. IF META IS TRYING TO CIRCUMVENT WHAT THEY PROMISED OR TRYING TO DO THINGS THAT GET AROUND WHAT THE SETTLEMENT SAYS, WE NEED TO CONTINUE TO BE THE PROTECTOR'S FOR OUR CLIENTS WHO ARE CHILDREN AND PARENTS. I FEEL VERY GOOD ABOUT THAT PART OF THE SETTLEMENT. I THINK META HAS MET US HALFWAY, PUN INTENDED, I GUESS. THEIR WILLINGNESS TO SETTLE THIS CASE AND WILLINGNESS TO GO AS FAR AS THEY HAVE FOR THESE CHILD PROTECTIONS, I THINK SHOWS A WILLINGNESS ON THEIR PART TO DO ALL OF THE THINGS THEY PROMISED. I'M GOING TO GIVE THEM THE BENEFIT OF THE DOUBT. I'M GOING TO ASSUME THEY ARE GOING TO DO EVERYTHING THEY SAID THEY'RE GOING TO DO. BUT THESE AUDITORS WILL HAVE THE POWER AND WE WILL HAVE THE POWER TO HOLD THEM ACCOUNTABLE IF THEY DO NOT. ED: META POSITIONS THIS FRAMEWORK AS EMPOWERING THE PARENTS, AND WE HAVE TALKED ABOUT HOW CONTINGENT THE SUCCESS OF THIS INITIATIVE WILL BE ON THE PARENTS. BUT FOR THOSE AGED 13 TO 17, THIS IS ALSO TECHNOLOGY STORY ABOUT YOUR ACCESS TO TECHNOLOGY AND THE RELATIONSHIP WITH TECHNOLOGY. HOW DO YOU SEE THAT CHANGING, YOUR CONSTITUENTS WITHIN THE AGE BRACKET 13 TO 17? >> IT IS INTERESTING. ONE OF THE COROLLARIES I DRAW FREQUENTLY IS ALL OF THE PEOPLE IN MY PARENTS GENERATION WATCHED THEIR PARENTS SMOKE CIGARETTES. KIDS WHO WATCHED THEIR PARENTS SMOKE ARE WAY LESS LIKELY TO SMOKE GOING FORWARD. I THINK FREQUENTLY WHEN 13-YEAR-OLD KIDS SEE THEIR MOM AND DAD SCROLLING ON HER PHONE ON THE COUCH, THEY KIND OF SEE THAT AS -- IN THE SAME WAY AS KIDS WHO WATCHED THEIR PARENTS SMOKE. I THINK THERE IS GOING TO BE AN INHERENT SHIFT IN THE NEXT GENERATION OF KIDS WHERE THEY UNDERSTAND THE TIME SUCK THAT DOOM SCROLLING CAN CREATE AND THE DAMAGES IT CAUSES. I AM HOPEFUL THAT NOT JUST THESE SAFETY PRECAUTIONS THAT WE HAVE PUT TOGETHER HERE, BUT JUST THE GENERAL SHIFTS IN SOCIETY -- WE WILL HAVE A GENERATION OF KIDS MOVING FORWARD WHO, HOPEFULLY, WANT TO GET BACK OUTSIDE, RIDE THEIR BIKE, LAY BASEBALL, HANG OUT WITH HER FRIENDS, LAY SPOTLIGHT, TO ALL OF THE THINGS WE DID WHEN WE WERE KIDS. WE ARE REALLY HOPEFUL THAT IS GOING TO HAPPEN. I THINK IN MANY RESPECTS WE ARE STARTING TO SEE THAT NOW. ED: THIS CLOSES THE BOOK ON A SPECIFIC PIECE OF LITIGATION. IN A 60 SECONDS WE HAVE LEFT, WHAT HAPPENS NEXT? HOW MUCH DOES THIS CONTINUE AT AN INDUSTRY-WIDE LEVEL? >> I THINK IT CONTINUES UNTIL ALL OF THOSE IN THE INDUSTRY MAKE THE SAME COMMITMENT THAT META DID TO THE CHILDREN AND PARENTS OF THIS COUNTRY. I BELIEVE THE ATTORNEY GENERAL'S WHO FILED THIS CASE ARE ALL READY TO GO TO MAKE SURE THAT HAPPENS. I AM VERY, VERY EXCITED FOR THE FUTURE FOR OUR KIDS AND I THINK THIS IS A HUGE FIRST STEP TO HOLDING ALL SOCIAL MEDIA PLATFORMS ACCOUNTABLE FOR HOW THEY HAVE TREATED OUR KIDS AND FAMILIES AS THEIR CUSTOMERS. ED: WEST VIRGINIA ATTORNEY GENERAL JB MCCUSKEY, DISCUSSING A SETTLEMENT WITH META WHERE META SAYS IT WILL PAY UP TO $18 BILLION OVER 10 YEARS BUT IS ASKING INDUSTRY PEERS COME AND YOUTUBE, TO PRESCRIBE THE SAME FRAMEWORK THAT IT HAS AGREED TO AND CHANGES TO POLICY ON HOW 13-YEAR-OLDS TO 17-YEAR-OLDS USES FACEBOOK AND INSTAGRAM HEARD COMING UP, SOUTHERN COMPANY CO CHRIS WOMACK, WHETHER AMERICA CAN GENERATE ENOUGH ELECTRICITY TO KEEP THE AI BOOM GOING. A CRITICAL CONVERSATION AS AN AMERICAN SENTIMENT TOWARD DATA CENTERS AS IN THE REPORTING OF THE DATA HAS STARTED TO CELEBRATE FINANCIAL MARKETS INTERESTING, WE ARE TREADING WATER RIGHT NOW AT THE INDEX LEVEL AHEAD OF NVIDIA EARNINGS, WHICH POST AFTER THE MARKET CLOSED THIS WEDNESDAY. META WAY OFF SESSION HIGHS FOLLOWING THAT SETTLEMENT BUT STILL HIGHER BY TWO PERCENTAGE POINTS. WE ARE HALFWAY THROUGH THE PROGRAM. FROM THE CITY OF SAN FRANCISCO, THIS IS A VOCAL BLOOMBERG TECH." ♪ ♪ ED: WELCOME BACK. A VERY QUICK CHECK ON META- SHARES. OFF SESSION HIGHS BUT HIGHER NONETHELESS AFTER AN UP $18 BILLION SETTLEMENT ON A LANDMARK SOCIAL MEDIA CASE WHERE META AGREES TO MAKE BIG CHANGES THAT WILL IMPACT HOW TEENAGERS USE IT. WITH RESTRICTIONS THAT REQUIRE A GREATER PARENTAL SUPERVISION. THAT HAS BEEN A BIG STORY IN THE SHOW. THE OTHER STOCK WE ARE WATCHING IS NVIDIA. WE HAVE A PREVIEW. >> WE ARE WATCHING SHARES OF NVIDIA. THE BIGGEST DOG IN THE MARKET TODAY IS A REPORTS QUARTERLY EARNINGS AFTER THE MARKET CLOSE. AN IMPORTANT THING HERE IS TO LOOK AT NVIDIA'S PERFORMANCE SO FAR THIS YEAR COULD ESPECIALLY COMPARED TO LAST FEW YEARS OR SINCE THE START OF THE AI BOOM. SHARE IS SNAPPED A SEVEN-DAY LOSING STREAK WHICH WAS ITS WORST SINCE 2022 AND THIS STOCK IF YOU LOOK AT THE PERFORMANCE THIS YEAR SO FAR TODAY IS HAVING THE WORST PERFORMANCE SINCE 2022. THEY HAD MUCH HIGHER GAINS IN THE LAST FEW YEARS. EARNINGS TO BE A HUGE CATALYST FOR THE STOCK BUT SOMETHING WE HAVE SEEN WITH NVIDIA IS IT HAS BEEN AWAIT. EVEN THOUGH THE COMPANY CONTINUES TO BEAT AND RAISE WALL STREET EXPECTATIONS. THE OPTIONS DATA IS SHOWING THAT ANALYSTS ARE EXPECTING A 5% SWING IN EITHER DIRECTION AROUND RESULTS TODAY FOR THE STOCK. FOR THE LAST FOUR OUT OF FIVE REPORTS THAT HAS BEEN A NEGATIVE REACTION. SHARES HAVE SOLD OFF AFTER REPORTS. SO WE WILL BE WATCHING A VERY CLOSELY AND AFTER HOURS TODAY AND THROUGH TOMORROW'S SESSIONS AFTER WE GET NUMBERS FROM NVIDIA AFTER THE ABOUT. BACK TO YOU. ED: THE AI AGREEMENT -- BOOM IS DRIVING A BUILDOUT. POWERING ALL OF THAT IS PUTTING AN PRESIDENT ON THE GRADE. THE SOUTHERN COMPANY'S CEOS JOINING US NOW TO DISCUSS, A UTILITY THAT REPRESENTS 9 MILLION CUSTOMERS. ONE OF THE BIGGEST. INTRODUCE US TO THE RESPONSIBILITY YOU HAVE RIGHT NOW. THE SCALE OF YOUR UTILITY AND THEN WE WILL GET TO THE AI STORY. >> IT IS A WONDERFUL TIME, THE WONDERFUL OPPORTUNITY WHERE WE FIND OURSELVES. WE ARE PREPARING FOR THIS GROWTH IN A VERY RESPONSIBLE MANNER, MAKING SURE THAT AS WE WORK WITH DATA CENTERS WE ARE MAKING SURE THAT THEY BEAR THE COST AND THEY DO THIS IN A VERY TRANSPARENT WAY. THIS IS INCREDIBLE OPPORTUNITY FOR THE COMPANY BUT I THINK IT IS VERY IMPORTANT THAT WE DO THIS THE RIGHT WAY THAT PROTECTS EXISTING CUSTOMERS AND ALSO MAKE SURE THAT THE INCREDIBLE BENEFITS THAT COME FROM THESE PROJECTS ARE PROVIDED TO COMMUNITIES. THERE IS A LOT OF ACTIVITY AND A LOT OF NOISE AND I THINK SOMETIMES A LOT OF MISINFORMATION ON WHAT IS GOING ON. WE TRY TO TALK ABOUT WHAT WE DO HERE IN OUR TERRITORY AND HOW WE ARE DOING CONTRACTS AND STRUCTURING CONTRACTS TO MAKE SURE THAT EXISTING CUSTOMERS ARE PROTECTED AND BENEFITS PROVIDE STABILITY ACROSS OUR BUSINESS MODEL. FOR ALL OF OUR CUSTOMERS. ED: LET'S GO OVER A CASE STUDY TO EXPLAIN THE OPERATIONAL CHALLENGE. THAT IS OPENAI IN SAVANNAH RECENTLY ANNOUNCED. HOW DOES SOMETHING LIKE THAT COME ABOUT FROM A UTILITY'S PERSPECTIVE AND HOW DO YOU RESPOND TO A BIG DATA CELLULAR -- CENTER PLAINLY GOES IN? >> THERE IS A LOT OF BUSINESS THAT WE HAVE. IN TERMS OF WHAT THEIR NEEDS ARE. WHAT PARTS OF THE COUNTRY THEY WANT TO LOCATE. WE WILL WORK VERY CLOSELY WITH THE LOCAL COMMUNITIES IN TERMS OF WHAT POTENTIAL LOCATIONS ARE AVAILABLE AND THEN WE WILL BEGIN TO PLAN AND DO SCENARIOS ON HOW THEY INTEGRATE WITH OUR SYSTEM AND OUR GRID. THEN WE CONTINUE DOWN TO THE PROCESS AND WE ARE EXCITED ABOUT WHAT WE HAVE DONE WITH OPENAI. WITHOUT ANNOUNCEMENTS AND OTHER PROVISIONS IN TERMS OF COLLATERAL REQUIREMENTS AND MINIMUM BILLS AND CANCELLATION FEES AND ALL OF THE THINGS WE THINK ARE IMPORTANT BUT ALSO HOW THEY TALKED ABOUT WHAT A GOOD COMMUNITY PARTNER THEY WOULD BE AND THE INVESTMENTS THEY WOULD MAKE. WE THINK THIS IS THE WAY TO DO THIS IN A VERY RESPONSIBLE WAY. ED: WE WILL TALK ABOUT THE IMPACT ON COMMUNITIES. WE ARE TALKING ABOUT LARGE LOAD CONTRACTS. HOW HAS THE OUTLOOK FOR THE NEXT TYPE OF DEAL CHANGE TO THIS YEAR GOING IN THE NEXT YEAR AND THE TERMS OF NUMBER AND SIZE THAT YOU ARE DOING. >> WE CONTINUE TO SEE A REAL SIGNIFICANT PIPELINE. WE STILL SEE THE DEMAND OUT TO THE FUTURE. WE HAVE NOT SEEN ANY DECLINE OR ANY HESITATION IN THE NUMBER OF PROJECTS. WHEN WE LOOK AT OUR PIPELINE WE CONTINUE TO SEE A SIGNIFICANT AMOUNT OF INTEREST AND ACTIVITY ACROSS OUR TERRITORY. ED: DO YOU SEE A PUBLIC BACKLASH OR SOURING SENTIMENT WITHIN YOUR CUSTOMERS ABOUT THE IDEA OF A DATA CENTER IN THE BACKYARD? >> AS YOU LOOK ACROSS THE COUNTRY AND YOU LOOK AT THE CONVERSATIONS ON THE POLITICAL ENVIRONMENT, CLEARLY THERE IS A LOT OF NOISE AND A LOT OF QUESTIONS ABOUT DATA CENTERS IN TERMS OF THE IMPACT ON ELECTRIC RATES AND WHAT HAPPENS WITH WATER USAGE AND NOISE AND A LOT OF THE FACTORS AND WHAT KIND OF CITIZEN THEY WILL BE. WE SPENT A LOT OF TIME TRYING TO EXPLAIN THE IMPLICATION IN VALUE THAT THESE PROJECTS BRAIN. IN TERMS OF THE BENEFITS THEY BRING WITH PUTTING DOLLAR PRESSURE ON EXISTING RATES. WE TRY TO MAKE SURE WE ARE VERY TRANSPARENT ABOUT THAT IN TERMS OF HOW WE ARE DOING AND HOW WE ARE MANAGING THESE PROJECTS ACROSS OUR BUSINESS. ED: WHAT IS THE REAL TERM OUTCOME FOR RATES? THE CONCERN OF EVERYDAY AMERICANS IS THEIR ELECTRICITY RATES GO HIGHER. THERE ARE ECONOMISTS SET OTHER UTILITIES TO SAY IF YOU GET THE HYPERSCALERS TO COVER THE COST OF UPDATING THE GRID, IT CAN ACTUALLY BE DEFLATIONARY FOR PRICES. WHAT IS THE TRUTH IN THAT? >> IF YOU LOOK ACROSS ALABAMA, WE HAVE A RATE STABILITY. IN TERMS OF RATES BEING FROZEN. AS WE LOOK AT OUR MODELS WE SEE WITH THESE PROJECTS THAT THEY WILL PUT DOWNWARD PRESSURE ON EXISTING CUSTOMER RATES. WE TRY TO COMMUNICATE THAT REALITY IN TERMS OF WHAT WE SEE IN OUR MODELS AND HOW WE OPERATE OUR SYSTEMS AND THE BENEFITS THAT COME WITH THESE PROJECTS. WE ARE TRYING TO TELL THAT STORY TO EXISTING CUSTOMERS ACROSS OUR TERRITORY. ED: THE DATA CAN BE CONFUSING. WE HAVE TRACKED FORECASTS WITH A LOAD FORECAST ACTUALLY COMES DOWN. THERE ARE SO MANY PROJECTS THAT ARE DUPLICATES. SOME WILL NEVER SEE THE LIGHT OF DAY. WHAT IS THE USE OF REAL-TIME DATA CENTER CONTRACTS THAT ARE HAPPENING IN THE REAL WORLD? >> YOU HAVE TO RISK ADJUST PIPELINES AND PROJECTS THAT MAY BE IN THE QUEUE AND SAY WHAT THEY ARE INTERESTED IN BECAUSE YOU HAVE TO ASSUME THEY ARE SHOPPING AROUND TO OTHER PARTS OF THE COUNTRY. SO YOU HAVE TO DO THAT RISK ADJUSTMENT WORK TO UNDERSTAND WHAT IS REAL. AS WE REQUIRE COLLATERAL REQUIREMENTS AND WHAT WE REQUIRE FROM THESE PROJECTS UP FRONT, THAT IS A WAY FOR US TO RISK ADJUST AND DETERMINE WHAT IS REAL AND WHAT IS DISPLACED. WE DO NOT HAVE PLACED ORDERS. WE ARE DEALING WITH WHAT WE THINK IS REAL AND PROJECTS WE SEE ADVANCING AND MOVING THROUGH THE WORK THAT WE DO WITHIN. WE HAVE TO BE VERY DILIGENT IN TERMS OF DOING THAT KIND OF WORK. ED: THANK YOU SO MUCH. WE WILL KEEP THE DATA CONVERSATION GOING LATER TODAY. THE ELECTRICITY AND POWER PORTION IS JUST ONE FACET OF SO MUCH MORE. I AM REALLY LOOKING FORWARD TO THAT CONVERSATION WITH THOSE WHO HAVE LED THE REPORTING IN THIS AREA. COMING UP, WE WILL DISCUSS THE LENS -- LANDSCAPE OF PRIVATE MARKET WITH THE FLOODGATE COFOUNDER AND PARTNER. THAT IS NEXT. ♪ ED: YOU ARE LOOKING AT A LIVE SHOT OF THE PRINCIPAL ROOM. CHECK OUT THE PODCAST. YOU CAN SEE IT ON THE TERMINAL. AS WELL AS ONLINE. THIS IS BLOOMBERG. ♪ OUR NEXT GUEST CENTERS ON WHAT SHE CALLS THE AI BUILD ORGANIZATIONS. SHE SPEAKS IN WITH THE SHIFTS MEANS FOR THE STRUCTURED START UP. THE FLOODGATE PARTNER AND COFOUNDER JOINS US NOW. WHAT DOES IT MEAN? >> IT IS A GOOD QUESTION. WHAT WE ARE SEEING THESE DAYS IS THERE IS A NEW WAY IN WHICH COMPANIES WILL BE BUILT. ORGANIZATIONS WILL BE RUN. THE ORGANIZATIONS ARE AI. MOST OF THE TIME PEOPLE ARE THINKING ABOUT ENGINEERING ORGANIZATIONS USING HUNDREDS OF THOUSANDS OF AGENTS AT A TIME BUT WE ARE STARTING TO SEE WHAT I WOULD CALL SOFTWARE FACTORIES BEING BUILT. COMPANIES ARE NOT JUST BUILDING THEIR OWN PRODUCTS USING SOFTWARE BUT THEY ARE ACTUALLY BUILDING THE FACTORY THAT WILL ACTUALLY BUILD THE SOFTWARE USING AI. THAT MEANS EVERYONE FROM SALES, MARKETING, STRATEGY, THEY ARE USING AI. WE THINK THAT IS REALLY FASCINATING. ED: THERE ARE A COUPLE OF DIFFERENT THINGS THAT STICK OUT TO ME. ONE IS SIZE AND WHEN HIS SPEED. HEAVENLY COMPANIES HAVE BEEN CREATED BY ALUMNI OF FRONTIER LABS OR THOSE COMPANIES? THEY REACH CRITICAL MASS. IS THAT WHAT YOU ARE TALKING ABOUT? >> SOME OF IT IS ABOUT THE SPEED THAT I WOULD SAY WHAT IS REALLY INTERESTING TODAY IS THAT THE LEARNING CYCLES FOR THESE COMPANIES HAS ACTUALLY BECOME EXTRAORDINARILY FAST. WHEN WE HAVE TALKED TO OVER 30 COMPANIES THAT ARE FROM THREE-PERSON STARTUPS TO PUBLIC COMPANIES, THEY INCLUDE AI COMPANIES. THE BIG DIFFERENCE IS THEY ARE LEARNING SO MUCH FASTER BECAUSE EVERY PART OF SEEING THE DATA AND EVEN ACTING UPON THAT DATA AND LEARNING FROM THE WHAT IS ACTUALLY DONE IS HAPPENING SO MUCH FASTER BECAUSE IT CAN BE DONE AGENTIC LEAK. ED: TRY TO PURSUE AND WHAT IS SEE WHAT IS HAPPENING IN THE REAL WORLD, HE WENT OUT AND SURVEYED AND INTERVIEWED A QUITE LARGE NUMBER OF INDIVIDUALS AND COMPANIES BIG AND SMALL. TALK US THROUGH WHAT HE DID THAT IN THE NET-NET, YOUR CONCLUSION. ANN: THIS WORK IS NOT FINISHED BY ANY MEANS BECAUSE WHAT WE ARE FINDING IS EVERY MONTH EVERYTHING STARTS TO CHANGE. I WAS INSPIRED BY ONE OF OUR PORTFOLIO COMPANIES WHERE THE CEO MAY BE LUCKIER BEFORE EVERYONE REALLY WOKE UP TO THE FACT CODING WAS CHANGING, CAME TO ME AND SAID I'M HAVING AN EXISTENTIAL CRISIS OF HOW OUR COMPANIES WILL BE RUN. WHEN HE SAID THAT I SAID, WELL, I'M GOING TO HAVE TO FIGURE THAT OUT. SO I WENT AND TALKED TO THE MOST AI-NATIVE COMPANIES AND FOUND NOT ALL AI PRODUCT BUSINESSES ARE ACTUALLY USING AI INTERNALLY. I DECIDED, WELL, I NEED TO KNOW WHO IS USING AI INTERNALLY OUTSIDE OF ENGINEERING. SOME OF THE COMPANIES THAT REALLY JUMPED OUT TO ME ARE COMPANIES LIKE RAMP WHERE THEY ARE REALLY ENABLING ALL OF THEIR EMPLOYEES TO LEVERAGE AI IN NEW WAYS FROM A SALESPERSON TO FINANCE ACROSS THE BOARD. FOR ACELAS IS ANOTHER COMPANY WE SAW THAT WAS VERY FAR AHEAD IN TERMS OF HOW THEY WERE ALSO LEVERAGING AI AND ENABLING ALL OF THEIR EMPLOYEES TO GENERATE AI AGENTS AND USE THEM. ED: FAST FORWARD AND TO PRESENT A, WHAT HAPPENS NEXT? HOW DOES ALL OF THAT WORK, WHICH IS ONGOING, DETERMINE WHERE YOU GUYS INVEST OR DON'T INVEST AT FLOODGATE? ANN: WE BELIEVE NOW THAT, FIRST OF ALL, WE HAVE USED THIS RESEARCH TO ACTUALLY GENERATE OUR OWN AGENTS INTERNALLY INFLUENCE THE WAY WE WORK BUT THE SECOND HE SAYS, THERE IS A LOT OF HOLES. AGENTS REALLY NEED IN ORDER TO OPERATE AND FOR EMPLOYEES TO ACTUALLY REALLY LEVERAGE AI, THERE'S A CERTAIN AMOUNT OF CONTEXT AND KNOWLEDGE YOU HAVE TO DIGITALLY DOCUMENT. THAT IS STILL NOT DONE EXTRAORDINARILY WELL IN MOST ORGANIZATIONS. AND THEN HOW DO YOU MAKE REGULAR EMPLOYEE COMFORTABLE USING AI IS STILL A BIG QUESTION. AND COMPANIES LIKE RAMP CAN ACTUALLY BUILD HARNESSES IN SOFTWARE THAT ENABLE THEIR EMPLOYEES TO DO SO, BUT 3% TO 10% STARTUP DOES NOT HAVE THAT CAPABILITY. SO THERE IS STILL A LOT OF INFRASTRUCTURE IN SOFTWARE TO BE BUILT, AND THAT REALLY CREATES OPPORTUNITIES FOR COMPANIES LIKE FLOODGATE TO COME IN AND INVEST IN FOUNDERS WHO SEE THE FUTURE AS WELL. ED: IT SOUNDS LIKE AT THE EARLIEST STAGES. RAMP IS A PRETTY MATURE COMPANY AT THIS POINT RELATIVELY SPEAKING. ANN: YES. AND THIS IS WHY RAMP HAS THE RESOURCES TO BE ABLE TO BUILD THOSE HARNESSES INTERNALLY. AND WE ARE SEEING SOME OF THESE COMPANIES, FAIRLY LARGE, ACTUALLY, HIRE AI INTERNAL TOOLING TEAMS. BUT THAT IS NOT GOING TO LAST FOREVER. NOT EVERY COMPANY IS GOING TO BE ABLE TO HIRE THOSE INDIVIDUALS, SO WE BELIEVE THERE WILL BE INFRASTRUCTURE THAT IS BUILT. ED: ANN MIURA-KO, THANK YOU SO MUCH FOR BEING WITH US. COMING UP, WE ARE GOING TO HAVE MORE ON THAT META SETTLEMENT. IT IS A REALLY IMPORTANT STORY. THIS IS "BLOOMBERG TECH." ♪ >> THE FRAMEWORK WILL ONLY WORK IF ALL OUR PEERS JOIN US. BECAUSE TEENS MOVE FLUIDLY ACROSS DOZENS OF APPS, WE NEED AN INDUSTRYWIDE SOLUTION. WE THEREFORE CALL ON OUR INDUSTRY PEERS TIKTOK AND YOUTUBE, IMPLEMENT THIS NEW FRAMEWORK RIGHT AWAY. ED: THAT WAS META'S CHIEF LEGAL CULLING ON SOCIAL MEDIA PEERS TO FOLLOW AND IMPLEMENT CHANGES AFTER THE SETTLEMENT OF ITS SOCIAL MEDIA CASE. I WENT TO BRING IN ALEX LEVINE WHO LEADS OUR COVERAGE OF THE SOCIAL MEDIA COMPANIES. META REACHES A $16.7 BILLION SETTLEMENT BUT ACTUALLY IS HOLDING $5 BILLION OF THAT BACK CONTINGENT ON TIKTOK AND YOUTUBE ADOPTING THE SAME FRAMEWORK THAT AGREED TO. THAT SEEMS A BIG INDUSTRY STORY. >> IT IS. ESPECIALLY BECAUSE AS WE SAW WITH SEVERAL OF THE CASES IN THE BROADER NATIONAL SOCIAL MEDIA LITIGATION THROUGHOUT THIS YEAR THAT TIKTOK AND YOUTUBE AND SNAP, ALSO A DEFENDANT ON THE CASES, HAS SETTLED. THERE WAS THIS THOUGHT, PARTICULARLY FROM THE COMPANY THAT PERHAPS SOME OF THIS WAS BEHIND THEM, AT LEAST SOME OF THIS WOULD PUT THEM OUTSIDE OF THE PUBLIC EYE, BUT I THINK WHAT META HAS DONE WITH THE AG'S IF APPROVED BY THE COURT IT IS HAS INSTITUTED THIS FORCING NECK AND IS HIM AND THRUST THE PRESSURE REALLY OFF OF META IN SOME WAYS AND BACK IN AN EVEN MORE AGGRESSIVE WAY ON TIKTOK AND YOUTUBE. ED: THE SETTLEMENT WAS ASTONISHING IN PART BECAUSE IT HAPPENED MID-TRIAL DURING PROCEEDINGS. YOU LOOK AT WHAT THEY GOT FACEBOOK TO AGREE TO IN TERMS OF THOSE NEW POLICIES FROM THE 13-YEAR-OLD TO 17-YEAR-OLDS, TO OUR LIMITS, OVERNIGHT LIMITS, SCHOOL HOURS LIMITS. REPORTING ON THE USE OF SOCIAL MEDIA IN THAT AGE BRACKET. WHAT YOU TELL US ABOUT WHAT MIGHT HAPPEN? >> I THINK THE INTERESTING THING TO WATCH WILL BE, ONE, HOW WELL ALL OF THESE THINGS THAT SOUND REALLY GREAT AND VERY STRONG ON PAPER WORK IN PRACTICE. WE HAVE SEEN IN OTHER PARTS OF THE WORLD LIKE AUSTRALIA WHERE THEY INSTITUTED A BAN ON YOUTH ON SOCIAL MEDIA THAT THERE ARE ALWAYS WORKAROUNDS. AND THAT SOMETIMES THE THINGS SET OUT ON PAPER DON'T ALWAYS WORK AS WELL IN PRACTICE. THAT WILL BE ONE THING WE SHOULD WATCH. SECOND THING IS THERE IS THIS THEY CALL IT A RATCHETING UP OF THE RESTRICTIONS THAT META HAS BASICALLY AGREED TO INTENSIFY THE RESTRICTIONS IT HAS LAID OUT IF TIKTOK AND YOUTUBE GET ON BOARD WITH IT. THE TWO I WILL CALL OUT, ONE OF THEM IS EXTENDING THE OVERNIGHT RESTRICTIONS ON OVERNIGHT NOTIFICATIONS. THEY WILL INCREASE THOSE RESTRICTIONS AND AT THE TIME FRAME. IF TIKTOK AND YOU TO GET ON BOARD. THE OTHER PIECE OF IT IS INCREASING OR DECREASING THE AMOUNT OF TIME THAT TEENS CAN ACTUALLY SPEND ON THE APP FROM TWO HOURS, WHICH META WILL DO ON ITS OWN, TO DUST ONE HOUR A DAY ACROSS THE PLATFORMS IF -- TO JUST ONE HOUR A DAY ACROSS THE PLATFORMS IF TIKTOK AND YOUTUBE GET ON BOARD. ED: RUSSIA IS PREPARING TO ESCALATE ATTACKS ON UKRAINE AFTER CONCLUDING NEGOTIATIONS FOR A PEACE DEAL HAVE REACHED A DEAD END. THAT IS ACCORDING TO SOURCES CLOSE TO THE KREMLIN. MOSCOW IS WEIGHING AN INTENSIFICATION OF POWERFUL CONVENTIONAL LISTED MISSILE ATTACKS ON KYIV IN DIFFERENT TARGETS BASED ON BLOOMBERG'S REPORTING AND CITING THE SOURCES. IF THERE ARE A GROWING NUMBER OF RUSSIAN OFFICIALS WHO HAVE COME TO THE CONCLUSION THAT RUSSIAN PRESIDENT VLADIMIR PUTIN COULD OPT TO USE TECHNICAL NUCLEAR WEAPONS. THAT REPORT JUST BROKEN. IT IT ON THE TERMINAL AND DOT COM. LET'S GET BACK TO THE STOCK EVERYONE IS WATCHING, NVIDIA. LET'S GET THE PREVIEW AND ESTIMATES FOR WHAT WE EXPECT FROM NVIDIA. >> THE REAL FOCUS IS GOING TO BE THE NEXT QUARTER. THIS IS WHEN THE NEW VERA RUBIN PLATFORM STARTS RAMPING WRITTEN SO FAR THE EXPECTATION IS THERE SHOULD BE NO HICCUPS OR CONCERNS OR INITIAL DELAY. WE EXPECT A PRETTY HIGH BEAT IN THIS NUMBER. ANYTHING SHY OF LESS THAN EXPECTATIONS WILL BE A NEGATIVE. BEYOND NEAR TERM, I THINK WHAT WILL MATTER FOR THE STOCK SENTIMENT ARE THE HALF $1 TRILLION WORTH OF BACKSTOP OR DOCKING THAT NVIDIA HAS ANNOUNCED FOR FINANCING DATA CENTER BUILDOUT. SECOND IS THE PRICE HIKES. HOW IT IMPACTS MARGIN, WHAT -- IS THIS THE ONLY PRICE LIKELY TO SEE AND CAN THEY CONTINUE KEEPING ITS MARGINS WITHOUT FURTHER PRICE HIKES? ED: THE PRICE HIKE IDEA WAS BASED ON BLOOMBERG REPORTING THAT THE SERVER MAKERS HAD NOTIFIED CUSTOMERS THAT THAT WOULD BE COMING IN 2027 ON VERA RUBIN. REAL QUICK, MARGINS, 75%, THAT IS NOT NORMAL, RIGHT, FOR CHIPMAKER OR IT IS? >> NOT NORMAL. IT IS INDUSTRY LEADING. ED: RESEARCH IS A MUST READ ON THE TERMINAL. A BUSY AFTERNOON FOR HIM AND THE TEAM. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECH." META SELLING WITH THOSE 29 STATES. THE PENALTY IT IS PAIN, THE CHANGES IT IS MAKING TO HIS CIRCUIT AND FACEBOOK. THAT WAS THE BIG STORY AHEAD OF NVIDIA EARNINGS. A RECAP OF A CRITICAL IMPERSONATION -- CONNOTATION WITH THE WEST VIRGINIA ATTORNEY GENERAL ONLINE. NOW IT IS ABOUT TREADING WATER TO NVIDIA'S FISCAL SECOND QUARTER REPORT AND THAT WILL HAVE BIG RAMIFICATIONS. LOOK AT THE. THIS IS "BLOOMBERG TECH." ♪