mark gurman and apple guru mark gurman. what is the defense coming from apple?suit is littered with nonsense. they make five points and three of them are about things that have either already been resolved or things apple said would be resolved so there is confusion as to why the doj is making allegations against apple about issues that have already been rectified or are in the process. the suit is filled with technical inaccuracies, inaccuracies related to things that apple may have done or is doing. apple believes that the doj is throwing as many items as it can gather against them but none of them prove the company is a monopoly. none of them show apple is harming consumers. you see apple harming some app developers and partners. the major pieces that seem relevant are the inability to create third-party tap to pay payment applications in the u.s. and the way the company throttles third-party smart watches when paired with the iphone. i don't think this will be a couple quarter situation. i think this will be a three or four year situation where ultimately yo

mark gurman joins us now for more.to me about the kind of numbers involved in a deal like this and what this rings to the apple company? >> thank you so much for having me this morning. apple has made dozens if not more acquisitions related to artificial intelligence over the last decade. let's not forget that apple was first to the modern ai voice market with syria in 2011. back then, it felt like apple was four years ahead and today it feels like they are behind. in terms of this deal, this is another small ai acquisition. this is called darwin ai in their technology is based in very high tech, highly advanced research out of the university of waterloo and some of their top machine learning. a lot of this deal was about ringing those people in with lots of those with doctorates and phd into apple making them pretty senior in the artificial intelligence organization. the best estimate is probably in the tens of millions of dollars but what's important is the technology and the people they are bringing in. there is a l

i am mark gurman for bloomberg news.hat was this week's "power on" with mark gurman down more than a percentage point in the session. the catalyst, the probe by the european commission. when recovered the doj suit, the stock fell 4% thursday, the biggest drop since august. it is starting to feel the antitrust pressure. real quick on the dma, an apple spokesperson told bloomberg that apple feels it is compliant with the dna. you notice the jump before we came on air comeback towards 70,000 u.s. dollars. there is a calendar moment coming up. bitcoin is approaching its highly anticipated hiving event, which would lower the supply of newly minted bitcoin. bitcoin hit records after each of the last three halvinmgs. let's bring in jack mallers, who i've discussed this with before. give me your thoughts on halving . >> what's going on, ed, i miss you, brother, you look good. just so everyone is aware of the fixed supply of bitcoin, 21 million, but not all 21 million have been issued to the world yet. bitcoin is on a fixed-issua

mark gurman, so fantastic to run through all of apple with you. let's stay with china. u.s. officials have told amd its artificial intelligence chip design for the chinese market is too powerful. they cannot sell it without a license from the commerce department. for more it is mckenzie hawkins. what is interesting is, amd had not been discussing what they have been making for china, but you got the inside track. mckinsey: have seen this story play out before with nvidia, which publicly said we are trying to design an ai processor for the chinese market to align with u.s. export controls after those curbs were put in place in 2022. then the u.s. moved to tighten those restrictions about a year later. that captured nvidia's chip. the u.s. said you cannot sell that to chinese customers. since then we have seen nvidia release new processors for china that they say align with the stricter restrictions, and also amd trying to get into this market as well. amd debuted a new suite of ai chips in december, and this china-specific chip is a less powerful version of that broader lineu

it's bring in mark gurman, chief correspondent covering apple. what has changed in the last 24 hours? do we have any signals for how apple is going to respond? mark: reading to the lawsuit reveals a lot. the department of justice had been working on the case for so long that i would say about 60% to 70% of their major points are things that have already been resolved. apple doesn't believe, of course they would say this, that the case holds much water. they don't believe they are a monopoly. they seem to find it perplexing that the government is trying to position them as a monopoly, whereas they believe they only have 20% global smartphone market share. i think apple is prepared for a fight here. i doubt they are going to settle. they have settled in some cases but i don't think tim cook has shown a willingness to settle. i think apple believes, based on my read of the lawsuit, i'm not seeing much harm toward consumers. i'm seeing a lot of harm toward developers. i'm seeing harm toward partners and some rivals. but, again, here they are -- their

mark gurman has more and the battle still rages on. give us the inside track of why we are seeing apple not allow this third-party app store to come to light? mark: caroline, apple has a lot on its plate. the digital markets act is coming into place. there's a lawsuit coming from the u.s. department of justice before the end of the month so they are already dealing with a lot. this latest bit is unnecessary. apple's app store chief and others at apple perhaps were upset about tim sweeney's tweets and response to the dma rollout, apple's way of complying with the new eu regulations. sweeney tweeted apple's response and new policies are "hot garbage." he called it malicious compliance and had other choice words or, as phil shiller called it, colorful language. they decided to yank the account in sweden that would allow epic games to roll out its third-party app marketplace in the countries that make up the eu. they pulled the developer account and now the eu is asking questions on the launch day for these new rules. not great and this has

caroline: mark gurman, what is apple's take? apple certainly disagrees across the board on this lawsuit. implying that the lawsuit is not legal, saying the iphone is not a monopoly, and pushing back heavily on the claims the department of justice is going after apple for everything from green bubbles two-car play, to how i cloud storage integrated, blaming apple for hurting consumers, hurting choice, hurting developers. certainly apple has squashed developers and made it difficult for developers to compete in some instances. on the other hand, a lot of this comes down to user interface and philosophical decisions apple making -- made many years ago about its integrated experience. we will have to see where apple is willing to meet the doj, how they can work together to create some solutions here to keep the iphone secured in an integrated platform, but certainly it needs to get more competitive for third-party developers and accessory makers. caroline: a man who can explain the apple philosophy, mark gurman, we thank you for jump

that's bring in mark gurman in san francisco. -- let's bring in mark gurman from san francisco.e as a surprise to people in the industry. not to u.s. well, someone who has tracked it for so long, but so many years in the making. was it really just a story of indecision here? mark: this was absolutely a story of indecision. have to implement technology. and really the realities of the current market which is short on profit margins and long on complexities or certainly, this was a difficult exercise. it took a decade for apple to come to this realization that maybe they should not be getting into the car business. if you read my story, and i highly encourage you to be that of -- to do so, there is so much detail about what the car was supposed to look like, how it would function, what features it would have, how the interior was more like a living room rather than what you would normally see from a car. how apple even through some of its top mines down to southern california to meet with jay leno to get a tour of his private garage as a multimillion dollar car collection, to lear

mark gurman was the first to report the news and he joins us now, how would this kind of partnershipork? >> thank you so much for having me. this partnership would be a blockbuster in the ai industry. apple has 2 billion devices with its logo on it in circulation right now. google according to many experts has the best generative ai engine on the market right now. the two coming together would be a major partnership for this growing and thriving ai industry. it's unclear because a commercial terms have not been worked out as to how this would work financially but there are scenarios in which google may pay apple to feature gemini here as the default provider, this could be reminiscent of the apple deal that has been under investigation for years not by the department of justice, google has been the default search engine on the iphone since the product launched in 2007, now moving onto the ai world, the generative ai engines, this would be an extension or sort of a modern 2024 version of that. sonali: you've reported apple has more than 2 billion devices in active use that could poten

mark gurman in los angeles.t ahead, weep you view the trading day -- we preview the when i was your age, we never had anything like this. what? wifi? wifi that works all over the house, even the basement. the basement. so i can finally throw that party... and invite shannon barnes. dream do come true. xfinity gives you reliable wifi with wall-to-wall coverage on all your devices, even when everyone is online. maybe we'll even get married one day. i wonder what i will be doing? probably still living here with mom and dad. fast reliable speeds right where you need them. that's wall-to-wall wifi on the xfinity 10g network. annabelle: breaking news here. tokyo inflation numbers dropping. tokyo inflation, a leading indicator for the nationwide reading. we have seen the core cpi coming in in line with estimates rising 2.5% on the year. a big increase from the month prior where it was 1.6%. there are a couple different factors. the main one is base effect. when you take a look at the earlier base, we had a lot of energ

this is according to reporting from mark gurman.is important to give in mind there are two things. this could be assigned that apple is not actually been able to develop their ai product that well. there is a working partnership between apple and alphabet. alphabet has been paying billions of dollars annually to be the go to search platform when you look at apple's safari, iphones, ipads. the first thing you pull up is the google search engine. it is a working partnership in the works for a while, but in addition to the fact that apple does not at the ai edge, there is a sign for gemini, is gives access to 2 billion users worldwide, a massive number when it comes to getting to reach that gemini has sent out -- and arguably on top of samsung which are very big competitors. samsung has the edge along with emerging market economies. spain, china, india, samsung is to go to, so that will be allowed to keep an eye when you look at the working partnership and whether or not apple can actually edge out or at least have some of the ai offer

coming up next hour, we will catch up with sam stovall, kathy but jan six, will kennedy and mark gurmanket and what's developing with apple. there is so much in the commodity market. copper through nine a in gold at all-time highs in oil close to the highs of the year. live from new york, this is bloomberg. ♪ investment opportunities are everywhere you turn. but at t. rowe price, we're letting curiosity light the way. asking smart questions about opportunities like advances in healthcare. and how these innovations will create a healthier world tomorrow. better questions. better outcomes. >> perhaps inflation may remain high and perhaps much stickier. >> i think we will be in this choppy is -- choppiness for a