00:00All of this is so interesting as to whether or not, indeed, NVIDIA gets access to China,
00:05whether we see a TikTok deal, whether we see continuing trade issues between U.S. and China
00:10iron out. If we talk about chips in particular, what have you made of the ferocious focus on
00:16domestic supply chain resiliency coming from China? Yeah, it's a great question, Caroline.
00:22And I agree with Maggie just now that, you know, the H200 is really going to be a boon for some
00:29of these Chinese AI companies. As we've seen over and over again, compute is really the bottleneck.
00:36But I want to go back to what you said about the TikTok deal. You know, we heard the news a few days
00:41ago. It hasn't yet been finalized. And I think a lot of investors are going to be analyzing what is
00:47the structure of this deal. But what I think is more interesting is what appears to be the case
00:53is that ByteDance, the parent company that owns TikTok, is going to maintain control over TikTok's
01:00algorithm. This, of course, is the special sauce that makes TikTok what it is, that makes it so
01:06addictive and so special in the first place. And I just want to remind your audience that Beijing
01:12has never agreed to turn over control of this algorithm over to these U.S. investors. And that's
01:19really at the heart of the deal. So what you see is, as the Trump administration keeps trying to come
01:25up with some kind of a deal to end this TikTok saga and keep it in the United States, it keeps
01:31kind of lowering the bar on this deal with Beijing over TikTok to the point where now we're probably
01:37going to be settling on a deal where Beijing, through ByteDance, maintains control over this
01:44algorithm and this vector of influence over American discourse and what, you know, hundreds
01:50of millions of people are seeing on this app every day. So, Liza, are you saying when the talk is,
01:56the reporting, is that they will be able to license the algorithm and then rebuild it? You don't think
02:03that they will be rebuilding? You don't think there will be some sort of retraining? We'll still be
02:07dependent on ByteDance's underlying algorithm? Yeah. I mean, color me skeptical. They are,
02:12they've been working on this, you know, so-called security deal for quite some time. But the reason
02:18that the Congress on a bipartisan basis passed the law in the first place and then the Supreme Court
02:24upheld it was because they did not see it as viable for U.S. national security for a adversary
02:32controlled company, you know, ByteDance and TikTok to be maintaining control of this algorithm. So
02:39I think they're going to be putting some kind of lipstick on the pig and some kind of security
02:44arrangement in place. But remember, going all the way back to 2020, Beijing put export controls
02:50on this algorithm. Those haven't gone away. Beijing has never budged in its stance. It's the U.S. side
02:57that has kind of lowered expectations over and over again. And the deal still isn't done yet.
03:02Liza, very briefly, is national security at risk, if that stands?
03:06Yeah. You know, it's, you know, we can make an analogy perhaps to the Cold War. It's almost as if,
03:14you know, during the Cold War, we let the Soviets take control over some of our major newspapers. Or
03:20imagine today if Bloomberg TV were up for sale to the Russians or the Iranians. What's somewhat ironic
03:26is that last month the Trump administration put out its national security strategy. You can see it on
03:33the White House website. And it makes the point over and over again that foreign interference in U.S.
03:41media is a problem. And yet here we are on the verge of this deal with TikTok with Beijing maintaining
03:48control.
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