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AT&T Reports Greater-than-Expected Mobile Subscriber Gains · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 2: Staying with earnings at and T adding more wireless subscribers
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  Speaker 2: and forecast by roughly one hundred thousand customers. The CEO
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  Speaker 2: John Stankey joined Bloomberg Surveillance to discuss the rise in subscribers.
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  Speaker 2: Take a listen.
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  Speaker 3: We can provide world class networks in both wireless and
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  Speaker 3: fix that tackle ninety eight percent of what a customer
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  Speaker 3: needs to do on the Internet. Occasionally they walk off
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  Speaker 3: one of our networks, and as you look at our
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  Speaker 3: partnerships that we're working with the satellite industry, by this
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  Speaker 3: time next year we'll be able to solve that problem.
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  Speaker 3: And so we're the natural place for people to come
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  Speaker 3: and meet their needs on the Internet and do it
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  Speaker 3: easily on one bill, with one set of services and
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  Speaker 3: one support infrastructure. We think we're in a great position
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  Speaker 3: as a result of that.
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  Speaker 2: Kelsey Griffiths is the Bloomberg Telecoms reporter she has been
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  Speaker 2: tracking the earnings today and she joins us right now
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  Speaker 2: from Washington. Ke The mobile phone industry is extremely competitive.
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  Speaker 2: We are bombarded by ads constantly from AT and T, Verizon,
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  Speaker 2: and Team Mobile trying to undercut each other and offer
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  Speaker 2: better terms, better deals. How is AT and T able
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  Speaker 2: to add more monthly wireless subscribers than expected in this
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  Speaker 2: kind of environment.
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  Speaker 4: This is a strategy AT and T has put into
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  Speaker 4: place since about last quarter. So back in March, they
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  Speaker 4: debuted this new plan that is kind of like an
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  Speaker 4: all in approach. They were modeling it after Peloton or
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  Speaker 4: Netflix or one of these sort of like tech lifestyle
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  Speaker 4: subscriptions where you pay one price and you have access
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  Speaker 4: to everything that you hope to get out of it.
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  Speaker 4: So AT and t's version of that is one price,
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  Speaker 4: you get home internet, you get mobile service, and you
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  Speaker 4: get a few connected devices like iPads or Apple watches
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  Speaker 4: thrown in. So that seems like it's been pretty successful.
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  Speaker 4: They have introduced some price increases on I believe with
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  Speaker 4: some of the more legacy plans that was about ten
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  Speaker 4: to twenty dollars per line. But even with those increases,
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  Speaker 4: it seems like customers are responding to some of these
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  Speaker 4: newer offers.
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  Speaker 5: Kelsey talk to us about their return of capital plans
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  Speaker 5: going forward, because I know that's a big part of
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  Speaker 5: the investment story.
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  Speaker 4: Right AT and T has said for a while that
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  Speaker 4: they are heavily invested in returning back to their shareholders,
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  Speaker 4: and today they announce that they're pulling that forward a
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  Speaker 4: little bit. I think they said they're going to buy
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  Speaker 4: back ten billion instead of just eight billion in shares
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  Speaker 4: this year. So that's a modest uptick that kind of
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  Speaker 4: contributes to that optimism that they're expressing in their long
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  Speaker 4: term strategy and growth.
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  Speaker 2: I want to just go back to the competitive market
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  Speaker 2: landscape for AT and T and the other mobile operators
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  Speaker 2: for a moment here, because there's been taught that SpaceX
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  Speaker 2: might enter this space. So what's already hyper competitive, we'll
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  Speaker 2: get even more so what is the latest on that front?
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  Speaker 4: That's right. We've seen the all three of the big
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  Speaker 4: telecom carriers stocks take a pretty substantial hit over the
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  Speaker 4: last several weeks as speculation about what SpaceX might be
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  Speaker 4: up to has sort of taken off. The telecom carriers
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  Speaker 4: have all so far made it pretty clear that they
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  Speaker 4: don't want to do any deals that would offer SpaceX
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  Speaker 4: access to the market as a peer. But at least
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  Speaker 4: T Mobile is working with SpaceX to fill in some
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  Speaker 4: of the gaps in T Mobile's terrestrial network. That was
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  Speaker 4: kind of what John Stankey suggested today. He didn't say
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  Speaker 4: specifically that he wants to do a deal with SpaceX,
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  Speaker 4: but he did say that he sees satellite generally as
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  Speaker 4: being very compli mentory to the ground based network that
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  Speaker 4: AT and T has, and it can actually potentially help them,
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  Speaker 4: you know, make their revenue better because they can fill
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  Speaker 4: some gaps in their network with satellite and potentially retire
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  Speaker 4: some parts of the network that are very expensive to maintain.
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  Speaker 5: CAPEX Kelsey, it's a capital intensive business, is telecom business?
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  Speaker 5: Did the company mention kind of what they're thinking in
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  Speaker 5: terms of CAPEX going forward?
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  Speaker 4: Well, I can tell you that John Sankey is very
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  Speaker 4: bullish on or at least very aware of how agentic
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  Speaker 4: ai is changing the network traffic patterns, and so I
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  Speaker 4: think he said he expects to see nine times enterprise
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  Speaker 4: growth and agentic AI in by twenty thirty five and
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  Speaker 4: seven times the volume of aic AI on the consumer side.
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  Speaker 4: So those massive increases in essentially AI driven traffic are
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  Speaker 4: things that he's planning for, and they do have a
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  Speaker 4: strategy right now, and they're not adjusting that strategy necessarily
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  Speaker 4: to account for in.
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  Speaker 6: Yeah, in their cap Thanks got it. Stay with us.
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  Speaker 2: More from Bloomberg Intelligence coming up after this.
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• 5:35
  Speaker 6: Stay on the earnings front.
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  Speaker 5: Super Micro jumps after early results show rising backlog.
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  Speaker 6: Stock is up twenty four percent today. Just extraorining us.
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  Speaker 6: It's talk to the analyst covers super Micro. That'd be
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  Speaker 6: Wu Jinho.
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  Speaker 5: He's in our Princeton office, which talked to us about
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  Speaker 5: super Micro. What did they say with the results and
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  Speaker 5: why is the stock up so much today?
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  Speaker 7: Yeah, Hey, hey Paul. So essentially it was that stunning
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  Speaker 7: backlock figure that they posted, right, So, if we think
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  Speaker 7: about a month ago when they did an equity raise,
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  Speaker 7: they announced that they had thirty nine billion dollars in
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  Speaker 7: backlog at the month of At the start of June,
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  Speaker 7: that increased to about sixty billion as part of the
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  Speaker 7: pre announcement. So what happens now is that the setup
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  Speaker 7: for her fiscal twenty twenty seven guidance is going to
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  Speaker 7: be really, really good. Consensus prior to the backlog guidance
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  Speaker 7: was at fifty three billion dollars for twenty seven. I'd
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  Speaker 7: be shocked if they don't exceed that.
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  Speaker 2: So if super Micro sees this kind of backlog, what
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  Speaker 2: does it mean for its peers, for its competitors, are
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  Speaker 2: they getting a similar lift?
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  Speaker 7: Well, I mean, you know, that's a great question, Scarlett Dell.
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  Speaker 7: Dell is the market leader in AI server as I
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  Speaker 7: suspect that Dell is going to see similar demand patterns
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  Speaker 7: as well, right, because typically these type of mega deals
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  Speaker 7: AI server deals are dual source. So super Micro is benefiting,
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  Speaker 7: Della is benefiting as.
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  Speaker 6: Well, and dellstock is up ten today in sympathy. So
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  Speaker 6: that probably tells.
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  Speaker 5: The story there, which how does the memory shortage, the
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  Speaker 5: way for the chip shortage and all that kind of stuff,
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  Speaker 5: How does that impact the super micros of the world,
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  Speaker 5: because it doesn't seem to be Yeah.
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  Speaker 7: So you know, we did some analysis on that from
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  Speaker 7: from the AI server front, it's it's clear that the
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  Speaker 7: given the demand for AI servers and the demand for compute,
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  Speaker 7: the neo clouds are more than willing to absorb those costs. Now,
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  Speaker 7: what's happening on the traditional servers right the stuff that
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  Speaker 7: powers our own enterprise data centers. Customers are desperate for
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  Speaker 7: comte compute because the rising memory costs. They want to
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  Speaker 7: avoid the inflation of the server server inflation. So they're
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  Speaker 7: actually I don't know if they're pre purchasing or pre buying,
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  Speaker 7: but they are buying. It hasn't affected the server business
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  Speaker 7: at all. If anything, the vendors have benefited.
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  Speaker 2: Okay, as we mentioned, micro shares up about twenty four
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  Speaker 2: percent today, so getting a big lift, but still, you know,
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  Speaker 2: well below the highs that we saw in early June.
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  Speaker 2: So Ujin this was a preliminary result. The company will
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  Speaker 2: actually formally report its quarterly results in mid August. Have
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  Speaker 2: we seen all the upside here or is there something
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  Speaker 2: that the company might withhold until the actual results that
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  Speaker 2: could give this stuck another kick.
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  Speaker 7: Yeah, So the thing that we're waiting for right now
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  Speaker 7: is the gross margin guidance for twenty seven Scarlet. Look,
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  Speaker 7: they gave phenomenal gross more. They expect phenomenal gross margin
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  Speaker 7: fifteen to seventeen percent for the fiscal fourth quarter, and
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  Speaker 7: they guide it to previously eight point two to eight
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  Speaker 7: point four percent. Look, I think it was one mega
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  Speaker 7: deal that helped them raise that guidance. I do expect
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  Speaker 7: gross margins to come down in twenty seven, but I
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  Speaker 7: suspect that there is an uptick in gross margin overall
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  Speaker 7: from the eight percent that they delivered in twenty six
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  Speaker 7: to around nine to ten percent. If that's going to
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  Speaker 7: be the case, given that the leverage of the model,
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  Speaker 7: you can start seeing a substantial uptick and earnings in
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  Speaker 7: twenty seven, even with the dilution from the equity raise.
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  Speaker 5: Thirty second stuff, which what is the revenue visibility for
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  Speaker 5: a super micro seems seems pretty pretty solid.
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  Speaker 7: I mean from a quarter to quarter basis, Yeah, Paul,
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  Speaker 7: they've missed their guidance for the past three to five quarters,
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  Speaker 7: so their execution has been choppy, but from a full
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  Speaker 7: year basis, it's actually been up into the right given
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  Speaker 7: how these data centers have been sprouting up and they've
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  Speaker 7: been really wanting to get the Nvidia chips in their
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  Speaker 7: buildings as quickly as possible.
• 9:46
  Speaker 2: Stay with US more from Bloomberg Intelligence coming up after this.
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  Speaker 1: your podcasts, or watch us live on YouTube.
• 10:06
  Speaker 6: More earnings here today.
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  Speaker 5: Philip Marsh thinks Cigarettes p M is the ticker. Some
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  Speaker 5: numbers out today. Stocks up about one point sixty five percent,
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  Speaker 5: stocks the fifty two week high, up nineteen percent. Year
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  Speaker 5: today pltus you get a three percent dividend yield. So
• 10:21
  Speaker 5: Philip marsharelder has been quite happy.
• 10:23
  Speaker 6: Let's bring Kenshay.
• 10:24
  Speaker 5: He's been following this company since the beginning of time
• 10:27
  Speaker 5: for Bloomberg Intelligence. He's seen all the iterations of Philip
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  Speaker 5: Mars and Altree and all that kind of stuff. So
• 10:34
  Speaker 5: Ken talk to us about what we saw from Philip
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  Speaker 5: Marsh today.
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  Speaker 8: Yeah.
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  Speaker 9: Hi, Well, if Phillip Morris's numbers today were really good,
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  Speaker 9: that the headline members top line ten percent, beat five percent, expectations,
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  Speaker 9: EPs up fifteen percent, expectations were for seven You know,
• 10:52
  Speaker 9: initially despite those strong members, initially the stock in the
• 10:56
  Speaker 9: pre market was down and I was scratching my head,
• 10:59
  Speaker 9: and I guess it was because they lowered their guidance
• 11:02
  Speaker 9: on a after currency basis, and this company is very international,
• 11:06
  Speaker 9: hence the name, and they said, look, you know, currencies
• 11:09
  Speaker 9: are not going to be quite as favorable as we
• 11:11
  Speaker 9: saw a last quarter, but are adjusted currency numbers, we're
• 11:19
  Speaker 9: still looking for high single digit EPs growth. I think
• 11:21
  Speaker 9: investors digested that they got bullish again.
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  Speaker 2: Right, Philip Morris is basically the international business, right, I mean,
• 11:29
  Speaker 2: Autria is the domestic business. And Philip Morris I believe
• 11:32
  Speaker 2: sells Marlboro's cigarettes outside the US.
• 11:37
  Speaker 9: That's right, Squirrel. It in a late ninety I should
• 11:40
  Speaker 9: say two thousand and eight, I believe it was this
• 11:42
  Speaker 9: company split. Phillimore's International basically took the Marlborough name and
• 11:46
  Speaker 9: the franchise outside the US. Ultria, a holding company, owns
• 11:50
  Speaker 9: pm USA, which owns the Marvel name in the US.
• 11:53
  Speaker 9: Since that time, though, the two companies have agreed to
• 11:56
  Speaker 9: allow pm I to sell non suit You're at tobacco
• 12:00
  Speaker 9: products in the US, and that's why you're seeing them
• 12:03
  Speaker 9: sell zin you know, the oral, the nicketine products, and
• 12:08
  Speaker 9: soon they're going to launch their heat Nott burned vapor
• 12:10
  Speaker 9: product in the US, a big potential growth market.
• 12:14
  Speaker 6: What is Zin? It's all over social media. Can you
• 12:16
  Speaker 6: explain this to me.
• 12:19
  Speaker 9: Zin is an oral nicotine product, Paul. It comes in
• 12:21
  Speaker 9: those little round cans, maybe plastic containers, but in if
• 12:28
  Speaker 9: you have twenty pouches that you can get your nicotine buzz.
• 12:31
  Speaker 9: It's a non tobacco product, you know, it's bacco free,
• 12:33
  Speaker 9: and you get your nicotine buzz without the ire of
• 12:39
  Speaker 9: your neighbor at work or on the subway or whatever
• 12:43
  Speaker 9: getting in the way that you're smoking or vaping next
• 12:46
  Speaker 9: to them. So it's a very discrete way of getting
• 12:48
  Speaker 9: your nicotine and it's doing really well. A lot of
• 12:50
  Speaker 9: smokers are switching over.
• 12:52
  Speaker 2: Interesting all right, Is it like nicotine gum? Is it
• 12:55
  Speaker 2: meant to kind of get you off of smoking? Or
• 12:57
  Speaker 2: is it just a flat out replacement. I mean, it's
• 13:00
  Speaker 2: the idea like a smoking cessation device.
• 13:03
  Speaker 9: It's mostly that, yes, yes, girl, And that's what the
• 13:05
  Speaker 9: intent is, and that's why the FDA has granted it
• 13:09
  Speaker 9: recently the authorization to promote it as a less harmful
• 13:13
  Speaker 9: source of nicotine as opposed to cigarettes. You know, it's
• 13:16
  Speaker 9: the inhalation of carbons that causes the harm. The FDA
• 13:20
  Speaker 9: acknowledges that if you get your nicotine, you know, through
• 13:23
  Speaker 9: your mouth, whatever it's, it's bypassing that harm. Not to
• 13:27
  Speaker 9: say nicotine is completely safe, but it's a much less
• 13:30
  Speaker 9: harmful form of nicotine ingestion.
• 13:34
  Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
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• 13:55
  Speaker 2: AI very much on our minds right now, and you know,
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  Speaker 2: we look ahead to some of the bigger picture issues
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  Speaker 2: that we need to resolve, and regulation is and has
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  Speaker 2: been coming up quite a bit. Our next guest suggests
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  Speaker 2: that perhaps we think about regulating AI the way that
• 14:13
  Speaker 2: we regulate the airline industry. Gatamconda is lecture at Yale
• 14:17
  Speaker 2: School of Management and a Bloomberg Opinion contributor, and this
• 14:20
  Speaker 2: is exactly what he's written about. Gotam, just walk us
• 14:23
  Speaker 2: through your thesis here about regulating AI using an FAA
• 14:27
  Speaker 2: kind of approach.
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  Speaker 8: Right, So let's think about this from you know what
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  Speaker 8: the industry itself says is that this is a technology
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  Speaker 8: that we'll have not just gigantic economic implications, but gigantic
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  Speaker 8: security implications. Right that they're already finding evidence as a
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  Speaker 8: technology that can help you do cybersecurity attacks, that can
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  Speaker 8: help maybe even in the with development of sort of
• 14:47
  Speaker 8: chemical or biological weapons. That sounds like something that the
• 14:51
  Speaker 8: government needs to step in, right. There needs to be
• 14:52
  Speaker 8: some regulation of that when you talk about those kinds
• 14:54
  Speaker 8: of risks. So then if you look at the industries
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  Speaker 8: and the areas where that risk has been successfully managed,
• 14:59
  Speaker 8: the aviation just stands out. It's just head and shoulders
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  Speaker 8: above everyone else. I would saying that if you could,
• 15:04
  Speaker 8: you know, you could tell people one hundred you know,
• 15:06
  Speaker 8: one hundred years ago that you could go from anywhere
• 15:09
  Speaker 8: in the world to anywhere in the world in twenty
• 15:11
  Speaker 8: four hours in safety so complete that it is safer
• 15:17
  Speaker 8: to be on the airplane than driving to and from
• 15:19
  Speaker 8: the airport. And the worst thing that would happen to
• 15:21
  Speaker 8: you is you complain about the quality of the pretzels.
• 15:24
  Speaker 8: They would say that sounds you know, that's a miracle,
• 15:26
  Speaker 8: that is an astonishing achievement, and you cannot separate out
• 15:29
  Speaker 8: that level of success and that level of innovation from
• 15:32
  Speaker 8: the success of the FAA, the you know, American regulatory agency,
• 15:36
  Speaker 8: which has just led the world in regulatory safety. So
• 15:39
  Speaker 8: if we've done so well with such an important industry,
• 15:41
  Speaker 8: I think we can learn from that.
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  Speaker 5: Is an argument to be made Gotham, that we that
• 15:46
  Speaker 5: we as society it might be too late to regulate AI.
• 15:49
  Speaker 6: Maybe it's there are it's already kind of out there.
• 15:53
  Speaker 8: So it is out there, but it's not to The
• 15:57
  Speaker 8: question is, you know, it might be too late to
• 15:59
  Speaker 8: elimit all of the potential harms. But if we're looking
• 16:02
  Speaker 8: at the curve and the curve keeps getting steeper and
• 16:05
  Speaker 8: moving faster, it's not too late to obviate the worst ones, right,
• 16:08
  Speaker 8: So the really big risks aren't there yet. You hear
• 16:11
  Speaker 8: people talking about AIS used in biological weapons. That's a
• 16:14
  Speaker 8: place where I've published articles, and we're still quite a
• 16:17
  Speaker 8: few years away from that, right, So working with biological
• 16:20
  Speaker 8: systems still involves a lot of handwork, involves people, It
• 16:23
  Speaker 8: involves a lot of sort of tacit skills. That's there.
• 16:26
  Speaker 8: It's but it is going away. So we want to
• 16:29
  Speaker 8: have these regulatory barriers in place before we lose the
• 16:32
  Speaker 8: safety that the safety that we were sort of we
• 16:34
  Speaker 8: sort of inherited.
• 16:36
  Speaker 2: So China, Chinese company Moonshot released Kimmy K three, and
• 16:42
  Speaker 2: we talked about this AI model and how disruptive, potentially
• 16:44
  Speaker 2: disruptive it could be. Do we think that China is
• 16:47
  Speaker 2: going to move faster than the US on regulating AI?
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  Speaker 8: So this is a fascinating question, and there's clearly a
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  Speaker 8: lot of debate in China, and the Chinese regulatory state
• 16:56
  Speaker 8: is quite advanced, and you know they have they have
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  Speaker 8: a deference to sort of technical expertise that we don't
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  Speaker 8: that might allow them to do that. But when we
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  Speaker 8: think about these these open weights models that are coming
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  Speaker 8: out of China, however impressive they are, they are also
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  Speaker 8: very clearly sort of behind what the United States has,
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  Speaker 8: and in quite a few cases they seem to be
• 17:15
  Speaker 8: heavily based on American models, so much so that if
• 17:17
  Speaker 8: you take Kimmy and you ask it what is your name?
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  Speaker 8: Its answer will be my name is Claude Bianthropic, which
• 17:24
  Speaker 8: is kind of a flag as to where they might
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  Speaker 8: have gotten that data from. Right, And so what I
• 17:29
  Speaker 8: would say is in this do allue but what we've
• 17:31
  Speaker 8: learned is aviation is an incredibly cooperative space, right, It's
• 17:34
  Speaker 8: both competitive and cooperative. Everyone wants to have the world's
• 17:38
  Speaker 8: leading airplane makers, it wants to have the world's leading airlines,
• 17:42
  Speaker 8: but they also understand that we've all got to work
• 17:44
  Speaker 8: together in order to make those safe. And what the
• 17:47
  Speaker 8: FAA was able to do was to create international norms
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  Speaker 8: of collaboration by being the best regulatory agency in the world.
• 17:54
  Speaker 8: So every one of the world sort of looked at
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  Speaker 8: the FAA and took their lead from the FAA. That again,
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  Speaker 8: is the same model we can do where we can
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  Speaker 8: get the Chinese and Us to agree on a regulatory
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  Speaker 8: harma regulatory harmonization that might make it safe for everybody
• 18:06
  Speaker 8: because we know they can because we've done it before.
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  Speaker 5: What has China said on this matter, if anything, as
• 18:12
  Speaker 5: it relates to just broadly regulating or controlling AI.
• 18:16
  Speaker 8: Yeah, there's been some really interesting discussions, but it hasn't
• 18:19
  Speaker 8: come out yet, right, So it's pretty clear that they
• 18:21
  Speaker 8: have some concerns about the will AI systems, and they're
• 18:24
  Speaker 8: willingness to sort of talk about issues like Tianneman Square.
• 18:26
  Speaker 8: They've cracked down on that and made it much more
• 18:28
  Speaker 8: difficult for these systems for their systems to do that.
• 18:31
  Speaker 8: There are a bunch of other areas where they've talked
• 18:33
  Speaker 8: about it, but so far it's been almost a surprisingly
• 18:36
  Speaker 8: light touch, I think, at least in part because the
• 18:39
  Speaker 8: Chinese attitude towards these systems is very different from ours. Right,
• 18:42
  Speaker 8: the Chinese AI community is not consumed with the possibility
• 18:45
  Speaker 8: of superintelligence or ending of the world. They're sort of like,
• 18:48
  Speaker 8: we're a billding these things. Then we'll be able to
• 18:49
  Speaker 8: apply them in factories and make our factories more efficient.
• 18:52
  Speaker 8: That is a lot less likely to generate fear, and
• 18:55
  Speaker 8: you know, might actually be more likely to generate short
• 18:57
  Speaker 8: term economic returns too.
• 18:59
  Speaker 2: Okay, is not exactly the leading edge of AI innovation.
• 19:03
  Speaker 2: But Europe is very good on regulation. They spend a
• 19:05
  Speaker 2: lot of time on that. Has europset or done anything
• 19:08
  Speaker 2: that kind of creates a bit of a template.
• 19:11
  Speaker 8: So I would say, not yet, And I want to
• 19:14
  Speaker 8: sort of push that on. When you say they're very
• 19:16
  Speaker 8: good at regulation, what they're they're often are is they
• 19:18
  Speaker 8: have a heavier hand.
• 19:19
  Speaker 2: Okay, regula, Yeah, maybe that's a better way to put it.
• 19:22
  Speaker 8: Yeah, But you know, like I think the American regulatory
• 19:25
  Speaker 8: state that we established, you know, up until pretty recently
• 19:28
  Speaker 8: with agencies like the FDA, was incredibly successful. We managed
• 19:31
  Speaker 8: to get both high levels of safety and high levels
• 19:34
  Speaker 8: of innovation at the same time. Those weren't those aren't right,
• 19:36
  Speaker 8: Those weren't in conflict. They were together. The reason that
• 19:39
  Speaker 8: the airline industry was able to the aviation industry was
• 19:42
  Speaker 8: able to progress so quickly was because people trusted that
• 19:45
  Speaker 8: the American government would keep it safe. And so this
• 19:48
  Speaker 8: is sort of a point that people in the industry
• 19:49
  Speaker 8: who sort of keep it weakening the you know, supporting
• 19:52
  Speaker 8: the weakening of the federal government or things like that,
• 19:54
  Speaker 8: they are fundamentally misunders misunderstanding the situation, and they should
• 19:59
  Speaker 8: they should be really careful. They might get what they
• 20:01
  Speaker 8: want for what they're asking for, because if they get
• 20:04
  Speaker 8: a US government that is too weak to regulate AI,
• 20:07
  Speaker 8: what they will get is also an American public that
• 20:09
  Speaker 8: rejects AI entirely in an industry that will die on
• 20:11
  Speaker 8: the vine.
• 20:12
  Speaker 6: Here thirty seconds left. What is the Trump administration set
• 20:15
  Speaker 6: on this matter?
• 20:15
  Speaker 8: If anything, They've started to talk about banning Chinese open
• 20:20
  Speaker 8: weights models, and that's probably gonna be my next column
• 20:22
  Speaker 8: because I said, I'm not sure what I think about that,
• 20:24
  Speaker 8: but that seems to me that that is walking down
• 20:25
  Speaker 8: a very slippery slope because those open weights models are
• 20:28
  Speaker 8: a big threat to the economics of our frontier labs,
• 20:32
  Speaker 8: but they're pretty great for everyone else, So you're making
• 20:34
  Speaker 8: a pretty striking trade there.
• 20:38
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