after posting an earnings beat and a slew of announcements, including a nuclear power data center deidre bosa more in today's "tech check. deidre, the comments last night indicate the excitement about ai and leaned against the idea that it's over or going through a massive reset right now. >> yeah, think of oracle like the switzerland of ai. it's now got deals with all of the hyperscalers, it's not developing its own ai model to compete with customers it is neutral and unthreatening. it's friends with everyone that has boded well for the company. it used to compete quite bitterly with some of the big players. customers now include everyone in the space from openai to microsoft bing chat bot. also working in its favor, ironically, is relatively late entry to the cloud infrastructure business. many of the data centers were built in recent years, so oracles were better designed for training ai models it's not slowing down either yesterday, ellison saying it signed 42 additional cloud gpu contracts for a total of $3 billion, another advantage is larry ellison himself. he's founder and executive c

deidre bosa has all the details. > reporter: so, kelly, there's still a lot of skepticism around robo taxis, and to be fair, there's been a few high profile accidents that have scared some away but this new report makes the case that its vehicles are safer than human drivers, and also shows that waymo is expanding extremely quickly, whether you like it or not more than 22 million rider only miles have been driven through june of this year, that is more than tripling in just eight months the safety website uses a formula that compares its driverless vehicles to benchmarks and shows they're safer in almost every category it reminds me of when uber came out with a safety report to reassure the public about ride share. i lyft shortly after the headline was a disclosure of more than 3,000 sexual assaults reported over a year of ride shares obviously, that's not a problem for a vehicle with no driver at all. riders don't need to worry about assault or any of the smaller stuff like tipping and smells. waymo says it's safer f

meeting today with leaders from openai anthropic, google, microsoft and nvidia's ceo let's bring in deidre bosaetails deidre >> hey, kelly. we know the government moves slow, and ai is moving faster than anyone anticipated, so big tech has done a bunch of deals in the energy space. oracle making progress on a data center that will require over a giga watt of electricity, or enough to power 750,000 homes. amazon mpaid ad 650 million for nuclear power facility so big tech is scouring the country for electricity supply, and the white house has certainly taken note megan stopped the nvidia ceo, who acknowledged the huge amounts of energy needed to continue to develop ai, but also talked about the solutions that ai could help pioneer. have a listen. >> although artificial intelligence consumes a lot of energy to train, it also saves a lot of energy when you consume it because ultimately, it's not about training the model, it's about using the model. whether it's in health care or climate technology or just running the power grid, ai has the opportunity to really save a ton of energy. and so i think

deidre bosa. >>> coming up, new tariffs are china are going into effect today. the chances of igniting a trade war after the election. details a of this. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise] >>> welcome back to "the exchange." incredible outperformance for chinese equiti

deidre bosa has more on this fascinating angle for us in today's "tech check." d not considered this, deidre. >> right, because all eyes are on generative ai and open source models. but let me put this together. first, take a look at shares of temu over the last month. down some 30%, massively underperforming. the key difference between pdd and the rest of the names is advertising dollars going directly to our biggest digital ad companies, meta and alphabet. temu was meta's top advertiser in 2023, and the top five ad center at google. thousands of temu spenders point to more weakness, new buyer activations wael off the peak. in early 2023 levels. this chart showing the number of new shoppers is half of what it was less than a year ago. and this comes on top of another negative catalyst, restricting use of a trade exemption that has helped the chinese commerce apps like temu, ship packages to consumers duty free. but this could translate into pain for meta and google where they have spent millions in advertising to reach the american consumer. meta's valuation, sh

here to discuss the implications for the ipo pipeline is jeff richards with our deidre bosa. ome to you both. deidre, set the scene for us and welcome to you both. >> hey, kelly. so basically, and i should let jeff explain this, but these are the top private companies that are basically letting small and medium-sized businesses operate in a different way. technology is enabling them to do things faster, more efficiently. this really tells you how quickly this is moving. and a question we often ask of public markets, are we going to see the monetization of generative ai. jeff, i wonder if you're seeing them at small and medium-sized businesses, is gen ai increasing their bottom line? >> it's a great question, and no lack of hype around ai and gen ai. one, small businesses, 40% of u.s. gdp. so it's a critical part of the u.s. economy. 60% of job growth over the last decade has been in small business. when you think about an tropic or openai or square or shoppify, those are names that people know and think of associated with a small business economy. what we try to do with our li

deidre bosa brings us this story today. deidre? the last thing microsoft wants to hear, it knows all too well what that regulatory scrutiny can mean. but this time it's big tech taking on big tech. microsoft argue mably has the m to lose. it has enjoyed a more under the radar status. there are doj and ftc monopoly lawsuits against several companies, but microsoft has avoided that scrutiny, perhaps in part because it already went through its anti-trust battles in the late '90s, or maybe because regulators have focused on privacy. but this google complaint puts a spotlight on microsoft's cloud business, saying essentially that microsoft uses its market power to push clients to use azure. this has been a strategy for other smaller players that filed a complaint against microsoft's 365. now, game concessions in the form of fines or the lowering of those walled gardens. i was chatting with steve covak who noted that co-pilot is not bubd bundled. we don't know whether that's because microsoft doesn't want to attract regulatoryscrutiny, b

deidre bosa is more in today's "tech check." >> never a dull moment for openai. startup darling, it could welcome apple and nvidia to its cap table. that may mean it needs to re-examine its structure, which is a hybrid entity. so a nonprofit foundation and a for profit arm. a disclaimer on the website states, it would be wise to view any investment in openai in the spirit of a donation. of course, the mega cap reportedly looking to invest in this latest round. they answer to shareholders looking for returns on their investment. how do you go? it's the eternal question, how do you go from scrappy startup to mature or ration and the stakes in generative ai, higher than ever. do you lose some of the innovation and grit but gain structure in managers? an interesting piece in "the new york times" on openai. 80% of its more than 1700 employees started after the release of chatgbt. additions that include some of the most respected people in technology like kevin wheel from facebook, crystal han from coinbase. but founders weighed in on the founder, writing many founders

we turn now to deidre bosa with that story and the ripple effects it could have in silicon valley. re. >> kelly, all the drama that could give startup founders one more reason to stay private or reconsider the consequences of founders. especially when you have to answer to a public board and shareholders. the ceo and founder of the dna testing company, she brought the company public just three years ago. it's since lost 99.9% of its value, from $6 billion market cap peak. so he decided that 23 and me should be private and firmly in her control. she proposed buying back all outstanding shares that she didn't already own. the board rejected that proposal, but she still has enough control to block other potential bidders. it's now culminated with all seven members oh of that board resigning, and a notice from the nasdaq threatening to de-list the company by october 3rd. this is the current web page of 23 and me's board of directors. mightily lonely. previously, it included some of the most important leaders in tech and health care. these are just some of them. they were attracted in th

. >> well, let's discuss that with deidre bosa joining us for "tech check" today with kate rooney, bothlad you guys are both here. kate, maybe you can bring us up to seat on what exactly has taken place with this company over the past 24 hours. >> it's been a wild 24 hours, kelly. you had some high-profile decampments from openai, and it comes after basically the entire founding team, after openai was started, has left the company. so it's continue thing trend we have seen of top executives leaving. that is part one. the other part of the reporting we have is that they are now in the middle of going from nonprofit to a benefit corporation, so this is a unique structure in corporate america. but it's quite common in ai, so anthropic, openai's rival out of here, is a public benefit corporation, so is xai, which is elon musk's rival to openai. it's -- they're heading in this direction, so they're essentially going to be a for-profit. as part of that, i'm told by a source that sam altman will get equity in the company for the first time. so a lot is going on. so those have been the headline

deidre bosa has more on today's tech check.t in for us. >> here's how it can change our own experience on the internet potentially a better browsing experience. let me explain. the government argues that publishers will have to find other ways they currently have to find other ways to make up for hundreds of millions of dollars they would be getting if google didn't allegely destroy competition. to maximize their own revenue they might have to put more ads on their websites, making them more cluttered or they put more content behind pay walls all adding up to a subpar browsing experience for us, the users. imagine a world where they were scrolling through banners you just get the content they were looking for or imagine you didn't have to enter your address, and that's what could be potentially fixed, better monetization and better monitoring websites. google argue that the browsing experience could actually get worse if there were more alternatives or if google was broken up and it could fragment the tech system and make it le

deidre bosa is here.s overbroad and they had to consider the effects on humanity or something? explain. >> always have to consider the effects on humanity, but yu right. in this case it was too broad and let me explain that governor newsom is trying to strike a very tricky balance. opponents of the bill including open ai, meta, google, they will applaud this veto. they called its standards ill-defined and they argue it could ultimately stifle innovation. newsom seems to be trying to appease thresearch community which largely supported the bill by bringing in high-profile researchers like fefe lee to work on a more comprehensive set of guardrails. he calls it the god mother of ai. he told me the veto was another example of profits trumping safety. he says he hasn't heard from newsom or been asked to work on the committee setting out these new guardrails, but if he was asked he would do it. newsom rejected the bill in its current form saying it applied only to the largest and most expensive ai models. he ar

deidre bosa in today's edition of "tech check." >>> coming up, astrazeneca confirming that employeesare under investigation and being detained. we're live in beijing. and smartsheet popping on -- and shares are up about 6%. shares are up about 6%. back after this. something amazing is happening here. data is bringing creativity to life. that's because cdw showed animation studios new ways to maximize their infrastructure, then built a flexible dell technologies data solution. more automation led to greater efficiency, which means creativity stays the star of the show. make amazing happen. dell technologies and cdw. >>> five current and former astrazeneca employees are being detained by police in china. it let's bring in eunice yoon with the very latest on this story. eunice, what do we know? >> reporter: well, kelly, astrazeneca confirmed that a small number of employees are under investigation here in china. that statement came as a response to reports that five chinese nationals either currently or formerly employed by the company, were taken by police over the summer in relation t

deidre bosa is here for "tech check." what is you say? a document that anthropic has shown outlining gross marngins. a look shows that its top line is projected to grow more than 1,000% year over year in 2024 to $1 billion. but its gross margin, thinner than the typical high quality companies at 38%. that likely has to do with higher upfront costs and developing these models like the need for gpus. investors, however, especially in venture capital, are willing to look past those lower margin it is top line is growing at 1,000 plus percent. revenue growth also helps valuations look more reasonable. the information reported that anthropic is in talks to raise another round at a $30 to $40 billion valuation. at the upper end of that range with a billion dollar in sales, it would put its multiple actually lower than it was nine months ago. similar story for openai, which is closing in on a round that would value it at $150 billion. now, that would be less than doub double, but mow mentum from bot of those darlings is likely to help them conti