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This is Bloomberg Tech coming up the AI trade warring back to kick off twenty twenty six Tech doogs in the Green.

We analyze the optimism plus Tesla's China factory shipments.

They rise in December, but still drop in twenty twenty five.

What that says about global EV demand and what do expect from CES this year.

We'll go live to Las Vegas to give you a preview of key conversations across our network.

But first we digest what the markets are digesting.

We are thinking about a very macro event, a geopolitical event that occurred this weekend, nocus Maduro and his wife, of course, being removed from Venezuela and being brought here to Me York following a series of airstrikes that hit Caracas early Saturday, and the market shakes off that geopolitical risk.

Thus far, we're up more than a percentage point in the Nasdaq.

We're looking more towards an AI trade.

We go under the hood, though there is search for safety.

You have seen seeing gold rebound.

Remember it's sold off hard into the new year.

Trade Bitcoin currently up to two point nine percent as we see not just digital gold on the higher side that's at ninety three thousand, but spot gold at two point seven percent higher.

I'm looking at the US dollar currently trading flat, but we had seen significant moves in the US solar more broadly, and we want to go to that macro level event right now because Venezuelan president Nicolas Maduro and his wife, Celia Flores will face trial, that is, on narco terrorism charges in New York in the afternoon.

Joining us now Blomberg Miles Miller, who stands by in Brooklyn right now, just talk to us about the imminence of the arrival of the ousted president.

Yeah, they were taken by an armored Bearcat vehicle to a landing pad in Brooklyn, and then from there they flew across the harbor, past the Statue of Liberty to the Wall Street helipad and we're motorcated here.

Of course.

Nicholas Maduro and his wife are both here at federal court in Lower Manhattan this morning and they're facing narco terrorism charges Federal prosecutors alleged that Maduro intended to benefit terrorist organizations including park Eln, Sineloa, Cartel, trend To Agras, and the Zetas.

And here's what prosecutors say happened from two thousand to two thousand and six while he was a member of the National Assembly.

They say Maduro moved cocaine under the protection of the Venezuelan law enforcement And if that is not enough, they say that they were able to secure diplomatic passports for some of these drug traffickers to move drugs and money in and out of Venezuela from places like Columbia and Mexico.

In one instance, we are told that they use a state oil plane, a plane for the state oil company, in order to facilitate the drugs moving in and out.

It's not just Maduro and his wife who were charged in this.

Their son is charged as well with being part of this drug conspiracy.

If convicted, he faces the possibility of life in a supermax prison here in the United States.

And we finally got some information about his legal team.

We are learning that he's going to be represented by Barry Pollock.

That's the same person who represented Julian assand as well as David Wilstrom, who represented the brother of Juan Orlando Hernandez, of course, the former president of Honduras who was charged right here in the southern district and was pardoned just a few weeks ago by President Trump.

Miles, you standby in Brooklyn for us, But many wonder how this is being digested in Venezuela.

What do we know about how Manduro is being deemed by Venezuelan leadership right now?

And as people, Yeah, you know, we heard from the Vice president of Venezuela that you know, she did not necessarily agree what would happen there, and she, of course is being the person who is taking control of the country, and it's going to be an interesting time there to see just what she does, how much she'll allow the United States to say, run the state oil company to control the oil in Venezuela, and if she doesn't, what will happen to her.

But it's not just what you're hearing on the streets of Venezuela, people who may be frustrated by what they saw.

You've got folks on both sides here, protesting, folks who believe Maduro should still be in power and want him to be released at his court hearing, and those who say they fled to the United States because of Maduro's regime.

You know, the President said just yesterday that the United States will run Venezuela.

Didn't give too many details, but I think it will have a lot to do with the oil and the strategic oil reserves stare as well.

Miles Mena, We so appreciate you, of course standing live outside and I correct myself, the Southern District of New York Court in Lower Manhattan.

Will we were returning to you later.

Meanwhile, US stocks sort of shrugged off these moves.

The powered higher this morning as demand for tech shares remained strong even after the ousto of Venezuela's president, fan worries over geo political risk.

Let's get you an invest to take.

Anna Ruffin is here with us, founder and CEO of Grenadilla Advisory, So your advisory is necessary right now?

Anna, is it right for the market to shape this off?

Good morning.

I don't think this has lot short term consequences for the markets, and I think there's a reason why it's shirking it off.

It's not a short term trading event.

I do think that there's a long term consequence of this.

I know that energy companies are soaring because of this idea that they will be able to go in and extract some of that oil, But frankly, that's not a twenty twenty sixth story.

The longer place here really is I think geopolitical think about where oil matters.

Russia seller of oil, China is buyer of oil, and of course Middle East we all know that there's a lot of oil involved there.

So if we think about where the conflicts are around the world and where, where and how the US is involved in those conflicts, I think this move in Venezuela is more of a chess game that's a longer run game, rather than a short term move.

Well, boy, has the tech investment community been trying to dissect the chess game that is US China trade and tariff How does it affect that in twenty twenty six do you think, Hannah.

Well, you know, throughout twenty twenty six we're supposed to be talking with China about tariffs, and at the center of those tariff and trade talks really is where earth minerals, AI, chips all of those things, right, And so if you're China and you're looking at the development over the weekend and you realize that in terms of natural resources, US has taken control over a lot of the oil that they will need as well.

It sort of changes the game and who has the upper hand in some of these talks that we're expecting to be in twenty twenty six.

So I think this puts, you know, strategically speaking, the US in a more powerful position in some of these trade talks.

So it'll be interesting to see how this all pans out in terms of our earth minerals and of course China buying potentially and video chips as well.

Okay, So strategically thinking for an investor right now, is it wise to be powering video higher, to be seeing Tesla rocketing up on the green today?

More broadly, should the AI trade be back on for twenty twenty six?

I think twenty twenty six is going to be a very interesting year for some of this trade that we've seen powering through the years.

I think, first of all, there is this idea that a lot of IPOs will come into play in twenty twenty six.

We will see how easy or difficult it is for a lot of these companies to fundraise, especially those that have really really high valuations, whether or not the investors really have the appetite for these things.

And as for Nvidia and Tesla, they have other problems really.

I mean, Nvidia has issues with TPUs coming online, and even though I do think that they have a lot of market share, still there are things to think about.

For Tesla, there's also bid right, So it's not so much that it is about AI powering through.

I think there's real competition out there that these companies need to be thinking about.

So it's interesting.

We're going to be hearing from Jensen Wang later today at CES from Nissa Sou of AMD.

What do you think they can give to the market that backs up the market share, certainly even video at least.

Yeah, I think clearer guidance is definitely helpful.

I know that the Nvidia has.

Certainly given a clearer guidance for twenty twenty six, and there seems to be a lot of demand.

But they're going to have to answer to sort of the next best thing, right, So what's beyond the black Well chips, what's beyond the relationships with open ai and other big players out there.

I think investors need to hear something new in terms of partnerships as well as technological advancement for a lot of this excitement to continue into twenty twenty six.

Sona, where do you stand in optimism versus pessimism for twenty twenty six If at this moment there are still many more questions and perhaps the market isn't factoring in some of the risks.

Should you be buying in at these levels?

Well, you know, if you're already invested.

I think there's room for markets to run, but not without any volatility here.

I don't think the market is so excited that, you know, analysts looking at fifteen percent year over year growth in ESMP five hundred companies.

That might be exciting on a fundamental level, and hopefully it broadens out to the rest of the sectors in the SMP five hundred index, But there are multiples that are very, very stretched right so, especially with this talks with China that not only impacts tech but also other areas of the economy.

I think we're due for some volatility, but weather the volatility by having a robust portfolio, and that is always recommended by the advisor community.

What's been really interesting is well the ongoing drive dispersion between software and hardware names.

We saw that in particular on Friday, and our great producer Dan Katz has been pointing out just the disparity that they saw in software indices that fell some three percent on Friday, and then we rallied in when you're looking at a semiconductor in next in particular more than four percent.

Is that going to continue?

How much more support do we need for software to show that it can benefit from the AI trade?

Yeah?

I think twenty twenty six is still going to be a picks and shovels year building these things out, and the demand there is for it.

That's not something that can be done in a year or two.

I think this is a multiple year story.

And certainly on the software side, there's a lot of experimentation still.

And if you're a customer sort of subscribing to some of these things and dipping your toes in, there's no guarantee that that's going to be sticky.

I mean, I think we're thinking about things like SaaS where if you have a subscription to something and you incorporate those software into your day to day, it becomes super sticky.

I don't think that's.

Necessarily where we are with the software on the AI side.

I think people are experimenting, so until we can see some stickiness in real incorporation, in integration of those software into the day to day of the businesses, I would be a little bit skeptical as well.

And I think that's what the markets are actually expressing.

Fascinating love getting a little healthy dose of skepticism today for Manor Rathman, Fanta, CEO of Grenadilla Advisory, Stay Well Happy twenty twenty six.

Now coming up, the arrest of Venezuela's Nicholas Maduura is being watched far beyond Latin America what it could mean for US resolve and China Taiwan relations.

This is a glouemleg tech the arrest of Venezuela's Nicholas madua when it's reverberating well beyond Latin America, some in Taiwan, when they're already viewing the move as a signal of US resolve, but the American strike is also star and cons that is offered a template how Beijing could handle tensions with Taiwan.

Here to break it down, as BLUEBGG senior Tech editor Mike Sheppard.

You bring us the global geopolitical perspective from a tech inside here.

Mike, what should we think for Taiwan and its well ability to continue in its current state vise of EA China.

Well, there are different schools of thought, Cara that you mapped out right there.

One is from inside China.

There is the nationalist perspective that, look, this offers us a rogue map perhaps of how we could retake control of the self governed island of Taiwan, which officials in Beijing view as a rogue province as one that they should bring back into the fold.

Meanwhile, in Taiwan and Taipei officials they're actually finding some encouragement from the US move in ven As will as perhaps a way of signaling deterrence against Beijing to try to do anything similar there.

And they see it that way for two reasons.

One, they find that the US has military superiority over China in this area.

China would not be able to pull off the same kind of maneuver that the US just did on Saturday in Caracas now.

And the other reason is that they see that this signals that Trump will exercise US military power when he sees American strategic interests at risk, and they certainly would be if China moved against Taiwan, which is a lynchpin in the global chip supply chain.

Yeah, go that, Mike, the national security implications of Taiwan.

Why is that so crucial to the administration.

Well, they still see Taiwan as so essential to being able to support a wide range of industries, especially the growing one on which they have placed so many bets, and that is artificial intelligence.

Taiwan, far and away right now is the world center of production of the most advanced AI chips.

Even with all the investment in production that is planned for the US in coming years, much of that is not online yet and is really still being produced in Taiwan on the self governed island.

So any disruption to that supply chain would be catastrophic, especially for political reasons.

If we saw any sort of military action by Beijing against the island, it would be disruptive.

And Caro, we remember during the pandemic just how problematic those dislocations in the supply chain were and how they rippled through so the automotive sective and others, And that of course was before the advent of artificial intelligence and chat GPT and the wide scale uptake that we're seeing across the economy of this revolutionary new technology and what that would mean if suddenly the world lost access to it.

We would likely see the US respond, It's unclear whether militarily, but certainly with sanctions, together with other nations like Japan and Australia that have already mused about leaping to the island's defense in the event of Beijing trying to intervene militarily.

And it's important to remember while Trump has remained vague about whether he would step in with US forces to defend the island, the administration just approved an eleven billion dollar package of arms to be sold to Taiwan, which is one of the largest and recent memory care.

Always with the deep analysis, Mike Shepherd, thanks for breaking that down.

Meanwhile, look this geopolitical anxiety that we speak of, so I have no impact on the AI trade in that part of the world.

Look at tsmc shares climb by the most it's April, as the company rides a wave of optimism of artificial intelligence.

Demand from About Tech Executive editor Peter Elstrom joins us for more and we've heard how in many ways, there's two ways you can interpret what this impact from Latin America means on Taiwan.

But TSMC great growth, it seems.

Yeah, as you were just talking about with Mike, Taiwan really is at the heart of the AI boom right now when it comes to the production, as we saw with TSMC, the show are up by about five percent today, we had Golden Sacks raise its price target for the stock.

They boosted it by thirty five percent.

It's really an extraordinary increase in what they expect you can see from that stock.

TSMC has done very well by making the chips for Nvidia.

It also produces chips for Apple and other customers here.

But really at Vidia has given it a ton of momentum recently that's put the company on a tear.

Its market cap is now about one point four trillion dollars, up quite sharply, and Golden Sacks is telling you that it could run another forty percent from where it is right now.

So truly talking about TSMC becoming a two trillion dollar company if they can hit that price target.

That would largely be based on the momentum behind Invidia's growth and some of their other customers like Apple.

And Nvidia has been helping Hanhai as well with its numbers.

That's right, yeah, exactly.

So Hanahi reported there some of their financial details for the fourth quarter, their revenue is up twenty two percent.

Hanahai makes a well mikes iPhones for Apple two, which was its very most important business for a long period of time.

But it also makes servers that include those Nvidia chips, so it's feeding servers in hardware to the hyperscalers that are building these enormous data centers across the US and across the globe.

Really, it has a tremendous amount of momentum because the big hyperscalers, including Microsoft and Google are boosting their spending by more than thirty percent this year to hundreds of billions of dollars, and that's giving a big tailwind to Hanhai.

So we saw Honhai boost its revenue for the fourth quarter twenty two percent.

It came in a couple billion dollars more than expected at eighty three billion dollars.

So it has a lot of momentum here.

It looks like that demand for AI gear is increasing at least for now.

Yeah, and ded iPhone seventeen did well.

As you mentioned, a key supplier, Fox Gone also known as Hanhi.

But Viz, going back to the start of this conversation, this is as we see ongoing geopolitical anxiety around Taiwan, how much always seeing these names invest in America and continue to do so well.

They are strategic acts assets definitely, as you're talking about with Mike, TSMC the most important chip maker in the world by a mile because of the advanced chips that it makes for companies like Nvidia, Apple, etc.

Has been building facilities in the United States.

It's putting a water resources there.

It got some money from the Chips Act under the Biden administration, has continued to build out those chips.

It is making a lot of progress there.

It's able to build fabs there that are quite productive, but they're not nearly as advanced as what they can do in Taiwan at this point.

And this is part of the justification by the Taiwanese government and also TSMC itself.

They want to have their most important assets in Taiwan.

Partly it's an economies of scale issue.

They can travel to those factories much more easily.

Have the engineers learned from each other within those factories.

They want to keep that most advanced production there.

It's also, frankly a defensive maneuver for the government that if the most important assets are there, they know that the Trump administration or whatever US government is in power, is more inclined to come and make sure that they're protected.

Peter Elstrom the global perspective, we thank you Tesla's China factory shipments.

They came in today and showed they dropped in twenty twenty five, but there was a last minute bump in December where they grew as though as the company struggles with a slowdown in global sales.

Look all of this, as I just mentioned, a little over ninety seven thousand were in December, just the fourth month and twenty twenty five that saw an increase springing Bluemos Craddell on all of this is the author of Hyperdrive Newsletters.

So to get the straight Tesla had decent numbers in December in terms of growth month a month and indeed year on year, but it's just woeful for the whole picture of twenty twenty five.

Yeah, that's right, Caroline.

I think you know, we look at the December number, and it's actually you know, resilient and not just one of the rare up months for the year, but off of a relatively big month a year earlier.

And yet when you look at the sort of whole picture for this company, you know, they had shipments throughout the year that were much lower and sort of reflecting this idea that they have some demand issues.

And of course when we look at their shipment data, it's both for the local market and for some export as well.

So we'll get a better.

Sense in the coming weeks just how the sort of retail sales work.

I mean, it's a second consecutive annual drop when you're looking at China shipments.

All of this comes in context that BYD is now the biggest EV player worldwide.

You've also got other competition coming from x phonemakers who pivot into cars.

Yeah, and China's market is increasingly cut throat.

You've seen Beijing try to sort of you know, put some pressure on the industry to knock this off and kind of you know, get to a point where pricing is a little bit more rational, and yet we only continue to see manufacturers, you know, offer new and more aggressive discounts, and that's been something that Tesla has really struggled to contend with throughout last year and even dating back to I would say twenty twenty three.

Briefly here in the US, that's competition from Lucid.

Yeah, and Lucid I think like Rivian is still a long ways behind Tesla.

I think both of these companies had ambitions to give Elon Musk more of a challenge, if we've not seen that materialize.

I think we saw some relatively strong numbers for that company in the fourth quarter, and yet you would expect that when they were going from one model to two models.

So you know, big things ahead for them this year as they tried to also bring out a new platform.

Bloombg's Auto's editor or Zara as we like to call you, Creatudel.

Great to have some time with you.

Tune in tomorrow if we sit down with Lucid interim CEO Mark windhoff As live at CEES.

Welcome back to bluembg Tech.

We check in on these markets that shrug off some geopolitical anxiety, of course when gathering higher.

In fact, on the nasdak as you see at one point one percent, you are seeing search for safety, though Bitcoin maybe up to two point eight percent.

Gold climbs fresh again, and this is after the ouster of Venezuela's President, Nicholas Maduro, who is set to arrive at a Manhattan court imminently.

Now we think about the geopolitical context, we also think about what the AI trade is up to at the start of twenty twenty six, and we're back on in video up sevent tens percent, AMD up six tens percent.

We hear from both of these CEOs over in Las Vegas later today at CEES.

So the market wanting to hear more transparency from these leaders.

Paneteer shakes off some of the sell off that we saw on Friday.

This software AI and FU software company is up more than four percent.

It's one of the key gainers on the NAZAQ one hundred from one points perspective.

So to is Alphabet, we're up five tens percent.

As still insatiable demand for Google and indeed it's Gemini iterations, but also it's TPU innovations.

Let's talk more about the AI trade.

It's resiliency, Bloomberg's Tech Equity Report to common Rhinokey is Hey and you've been putting pent to pepe, but thinking all about how an AI bubble has been much tokedal Is it reality?

Is it going to pop?

What have we been hairing in terms of historical context?

Yeah, so looking at this in historical context is really interesting.

I think we know that there's going to be a fourth year of talking about AI driving the market.

Are we in a bubble?

And so when you look at some of the past equity bubbles, there are some differences that investors point out that are important.

So, for example, the duration of this rally is longer than the average of the last ten equity bubbles.

We're at three years, the average is about two and a half.

But at the same time, the percentage gain is actually much lower.

So we're up about one hundred and thirty percent on the Nasdaq over the last three years, and the average for the last ten equity bubbles has been more than two hundred and forty percent.

So that kind of signals that we're not in the sort of blistering sort of upcycle upswing in the market that you usually see before a bubble pops.

There are also some other key things.

You know, investors are still watching really solid fundamentals from the big tech companies, and actually pessimism that we saw especially I think gain really over last year.

You know, the investors really calling for ROI, you know, for seeing more like innovation from these companies.

That's actually a good thing in terms of a market bubble, and it very much differs from the dot com era, where investors were so excited about the Internet and everything related to that, but they kind of overlooked, you know, valuations and some of the fundamentals of those companies.

I felt like discerning was the word of December.

Everyone was saying investors get more discerning.

They were picking their winners among the AI trade, How are we set up posts set off of an oracle and those companies.

They still did extraordinarily well for twenty twenty five, but some of that height did fizzle someone as companies and investors tried to understand the debtloads of these businesses.

Yeah, and I think the other thing that we're seeing that's good is the broadening of this rally.

So yes, people are picking their winners and their losers, but we're also not seeing the biggest gainers continue to have be sort of like astronognomical percent gains over the year.

So in the MAG seven, for example, only two in Nvidia and Alphabet of like those were the only stocks that outperformed the S and P five hundred last year.

And you know, the biggest performers are the biggest sort of percentage winners that we saw were other stocks like linked to AI, so the memory like the digital storage companies.

So that also just shows that the rallies broadening out and that is generally more healthy for the market.

A little bit of health to kick off this twenty twenty six common Ranicky, we appreciate it.

I stick with the AI build out in particular how secure it is, questions growing around in particular power and infrastructure constraints as well Flex Central.

It's one of the largest privately held data center operators in the United States.

Fully two data centers cross eighteen markets here in the US.

Ran Mallory as the CEO, please to say you join us now, and I want to get for our audience, really, Ron, how you define where you sit in the overall market because right now, from what I understand is you're a co location offering.

So we've got well big hyperscaleer's got neoclouds and then we've got flec centraal.

That's correct, and thanks for the opportunity to catch up this morning, Caroline.

It's really about, you know, the type of infrastructure that you deploy out there.

Flex Cential is taking a very pragmatic view on making sure we're able to address the wholesale infrastructure, so the one to twenty megawatts, but also making sure that we're able to address the multi tenant capabilities that are out there as well, because those are the companies that are going to be consuming the agentic AI capabilities that we're seeing to start to accelerate out there, so that the landscape is starting to separate a bit, and flex Cential thinks we've got a very strong position right down that fairway on that wholesale multi tenant collocation marketplace.

Ryan, that sounds like you want to be diversified.

You don't want to just have one particular buyer calling you up saying I will take one hundred megawatts from your future project.

How are you hearing though from potential clients.

Are they wanting you to be the sold right or you've been taken in entirety of their business in certain locations.

Yeah, Caroline, you're spot on.

We want to make sure that we're diversified in our customer base, and you know, the simple answer is yes.

We have companies that come to us and say we want to make you know, we want to take one of your whole data centers and put all of our you know, GPU TPU xpus in those facilities.

That's just not where we're going to play.

We want to make sure this multi tenant ecosystem environment has a place out in the market, and our product set is just perfectly fit for that out there.

Today, you talk about GPU, TPU XPU, what is the constraint right now?

For all of twenty twenty five, it felt like the narrative was it's the chips, but actually then it became the power then, whereas warries about water.

Where are you seeing some of the chap points.

Yeah, I mean it's really threefold.

We see land, power and supply chain, and supply chain being that of you know, the mechanical infrastructure that goes inside the data centers.

And so you have to be very focused on all three.

And you're not just planning for twenty six right now, you're planning for twenty eight through thirty because you know that this dynamic marketplace and the consumption models that are out there, we've got to be very focused on the long term gains and being able to provision this infrastructure to meet those requirements.

So where does that infrastructure end up going.

We keep talking about innovations, particularly in the inference side of things, and people have got anxiety about Nvidia's role going forward as once the models are trained that being used, is it still all about the GPU?

Is AMD getting a look in what's your client's demand?

Yeah, and so it really depends on what the end customer is trying to use the infrastructure for.

You know, let's not forget that.

Right now, we're shipping five CPUs for every GPU out there, and so this dynamic integration between the CPU world and the gp EU world is really starting to form.

And that's where this agentic capability is being able to use multiple services is really starting to drive this demand growth.

And you know, when people talk about AI bubbles there, I think we're still at the forefront of this AI consumption model To really start to put our hands around that, I think we've got a long runway to go.

Long runway, what does that mean for your runway?

Ryan, As we said, you're one of the biggest privately how operators.

I assume you're not just going to call some clients, but from companies that want to own a bit of your real estate.

Absolutely, and so we're looking at this in you know, five and ten year horizons, and so you know, we've got a firm path over the next five years for that land, for that power and supply chain.

You know, we're buying out infrastructure to make sure that we're able to meet this growth trajectory out through you know, twenty thirty twenty thirty two.

Once you get out past that, it's a little bit hard to predict what this infrastructure is going to look like.

You know, we're firmly entrenched with you know, liquid to chip, liquid to rac or and immersion cooling inside the facilities to meet these higher density deployments.

But you know, right now we're formally firmly focused on getting out to that twenty thirty to twenty thirty two deployment strategy.

Roan Mallory come back, I hope for Essential CEO operating those data centers across the United States, a lot on the East Coast.

Meanwhile, coming up what twenty twenty six has in store for AI regulation.

We'll discuss that with Jessica Nujan, director of the Central of Technology and Innovation with the Competitive Enterprise Institute.

This is b meg the AI trade.

Well, if you're looking at stocks, it's on today.

But one of the headwinds industry leaders keep on mentioning is AI regulation.

One of President Trump's final executive orders of twenty twenty five, remember, was aimed at limiting state AI regulations, countering what it sees as a patchwork of local laws that industry leaders argue stifles growth.

Discuss what twenty twenty six may bring in federal AI regulation.

If any, Let's bringin Jessica Malusian.

She is the director of the Center for Technology and Innovation with the Competitive Enterprises to you're a non partisan policy group, you are going to argue against heavy regulation to foster innovation.

So I have a feeling you're not pro a patchwork approach.

But will we ever get a federal approach or at least Congress being able to push forward one.

Yeah, So I think the executive order that you mentioned earlier by President Trump was in one part, trying to get some of that done without congressional action.

That's probably now going to be a very successful plan.

But I think also part of it was trying to create some political pressure for Congress to take on this responsibility and act in place.

As you described a patchwork of fifty state regulations, there were a thousand of them introduced or passed or considered just last year, and often their contradictory.

Often they're heavy handed.

Some of them might make sense, but not all of them do, and to ask USAI entrepreneurs to operate in that environment is very unrealistic.

Well, what's interesting is even despite that executive order, many California law makers are still pushing ahead with some of their AI regulation.

And then I think what other Senate Commerce Committee chair.

For example, you've had Ted Cruz roll out a package of a related legislature.

He's doing that back in September.

You've had Marshall Blackburn looking to unveil more potential regulation that was announced in December.

There's been Democrats in the House as well.

Jessica, what is the most sensible.

I think we'll start with what's the least sensible, which is that the default situation if Congress does nothing, is that you're going to have the most strict regulatory regimes.

So think California, I think New York become the default setting for the entire country.

Right as firms try to comply with this.

The big ones might have the money to do that, but smaller guys are going to say, Okay, we're just going to comply with the most strict version.

Hope that gets us through.

So you know, that's not how any of this was designed to work.

And what you need is people on the national stage.

That's why we have the Commerce Clause, willing to butt heads even if they disagree.

That's what hearings in regular order are for.

So the Ted Cruises and the Marsha Blackburns should talk this out and figure out where we can get to some agreement on this.

But this certainly is the purview of Congress and not just the most regulatory strict states or fifty different states.

Now, in many ways, AISA David Sachs has been thinking about federal regulation from an administration perspective, but also they've been thinking about how some of the innovations in the US are enabled to be sent abroad.

And we still think about what in Nvidia and its access to China, really looks like how much is that going to be dominating the agenda as well?

From your perspective, I think chips are a part of it, But I think that you correctly identified the issue that loom's largest off this debate is that you know, this really isn't at questions so much as we are, in fact in a race with China for global AI dominance.

That's just the reality.

I think people who are looking at this on that scale understand that tying and arm behind to back with a bunch of state regulations for the US is not a great plan for winning.

So I think all of those questions, whether it's chip restriction, exports or creating a regulatory regime as we see in the EU they have an AI regulatory regime that's bigger than their AI sector.

We don't want to fall into that trap because this isn't just about benefits to US consumers, which there are many from AI and the health of our economy which is significant from AI, but it really is also making.

Sure that as we go forward, the world is.

Running on US AI, not Chinese AI.

That's been our approach in a lot of technological times of innovation, but it's certainly never been more important than it is with artificial intelligence.

Some of the angles with altufficient intelligence has been meant health and security of its users and consumers.

This is something that we think time and time again has been affecting the social media outlook.

There has been a void of federal regulation when it comes to the protection of users on social media.

Over in Australia, you've seen quite drastic steps being taken by looking to and disallow anyone on younger than sixteen using companies meta with Instagram, with Facebook and the like.

What do you make of what Australia's done and what we might do in the United States.

Yeah, I mean Australia is certainly like the first mover in this right it's out on the tip of the sphere.

I'm not sure it's going to be the silver bullet for everyone's mental health and all the things that make being a teenager difficult that they hope it is.

But they're willing to run the experiment for us, and I'm sure that other countries are watching closely and there might be some copycatting there.

I think that's a much steeper hill to climb.

In the US.

First of all, we have the First Amendment.

That would be a challenge for all all like this.

Kids don't have full rights as adults, but they have some rights.

And also these social media companies have their own First Amendment rights to speech, so that also we have a Congress that it often struggles to get so called must pass legislation done.

So I think it's two different environments.

We'll all be watching how it goes in Australia.

So far it's a lot of kids circumventing the rules with VPNs and other tactics.

And the fact is too these social media companies that are targeted by the laws are born and bred in the US, so it's a little bit different politically as well.

These are our companies and as we talk about all the time, these are creating a lot of wealth and value for consumers here and I think we think a little more carefully about how we treat them and what regulations and finds we subject them to than the rest of the world does.

Jessica Illusion, director of the Center of Technology and Innovation with a Competitive Enterprises, thanks for joining us today.

A Consumer Tech Conference CES kicks off in Las Vegas with all eyes on the power and the impact of AI.

Let's get more on what we can expect.

Buther Owan, Ned Ludlow, you're already there in Vegas.

I'm following in hot pursuit.

But then I mean, we're going to hear from Jensen Wang.

It's all going to be about showing the innovation and market share is still there.

Right, Yeah, it's called the Consumer Electronics Show.

But the frank reality is you have the CEO of the world's biggest and most important company talking big picture about AI right in Video, calling this what's next in AI, and it's highly unlikely that they're going to kind of surprise the markets with some new product, but maybe some substantive updates on the product roadmap, right and Video has this commitment to releasing a new generation of GPU annually.

So right now there's a big focus on Blackwell, but what comes next is vera Rubin and the Rubin generation.

A year ago when we were here, it was also kind of the sidelines commentary from Jensen that ruled markets.

Right as it stands, we have a real bottleneck with memory chips go.

It was Jensen had to say about Samsung and their validation of Samsung's high Bandwick memory.

This sent kind of markets into a tizzy.

So the way that investors put this to me is like, it's the first proper business day of the year.

Let's be honest, and you get Jensen one knot and there's likely to be some reaction to that.

You get Lisa su Quino as well, and what do we hear from the other key player?

And that's not consumer evidently, but is powering the consumer?

You know a little different, right, you know, Lisa to an AMD will want to talk about how they are competitive in the in the AI accelerator market, and there's an opportunity for them to catch up with Nvidia, particularly in the inference phase.

They have a role to play.

But what we've seen with AMD historically is they still have a very big foothold in the PC market that's relevant to the consumer, relevant to developers.

So with their rise in CPU, perhaps we hear some news around that.

The big news for them a year ago was that they had their gear going into Dell for the first time.

So it will be this mix of like, Okay, we're staying competitive in AI, but AMD is still there and there about in PC and also in gaming in videos.

Let's focus on that it still operates in those markets too, of course.

Yeah, it's origins all about your world of gaming.

Team Blue Meg Tech's own ed Ludlow.

We love it.

Thank you for more on cees come right here tomorrow.

On Bloomberg Tech.

We're going to have some of the biggest names in the industry, including in video CEO Jensen Huang Zeeman, CEO Rollin Bush, AMDCO, Lisa Sue, and so many more.

But of course we do all need to head back now to the Southern District of New York Court in New York, where Bloomberg's Miles Miller is standing by as we are moments away from Venezuelan president Nicholas Maduro and his wife Celia for US facing trial on narco terrorism charges.

But ten minutes out.

Miles, Yeah, that's right.

They will go before Judge Alvin Hellerstein in about ten minutes time.

Here, less than ten minutes now, they cleared the courthouse floor of everybody, swept the floor, and they'll bring them into the courtroom and then let people come in.

This is such a widely watched case that they have several overflow courtrooms in this court.

They are alleging that Nicholas Medoro and his wife ran a narco terrorism organization funded narco terrorists, using government planes to get drugs in and out of the country, in one case, using the state oil company's plane to fly twice monthly to Margarita Island to load up with drugs and then bring them to other parts of different countries, including to the United States, using government infrastructure to do corrupt acts.

Those are the allegations.

He will face that judge of twelve and it's likely that he'll enter that plea of not guilty.

What is most shocking and very interesting in this case is that he's hired the same attorney that Julian Assange use, a high powered attorney from Washington to represent him in this case.

But these are very very serious charges which carry the possibility of life in prison, the possibility that Nicholas Maduro after trial could go to a supermax prison for the rest of his life.

There are people out here on both sides, supporters of his outside.

He'll be able to hear them when he goes into the courthouse or goes into that courtroom here at five hundred Pearl Street in just about now five minutes time.

Local protests, but global ripples, and we're seeing that.

When we talk here on the Tech show about what this means for the future of China and Taiwan, we hear, of course of the Danish leader, Prime Minister Meta Fredericson on their own National TV network saying that if Donald Trump were to attack the Danish island of Brelan, that would mean the end of the NATO Alliance.

How global is the mindset over there in Manhattan right now?

Yeah, you see the global impact of this pretty clearly.

Right.

Our government, the US government is trying to go into Venezuela and take control right now of the oil so that China and Russia don't control the oil in Venezuela.

And it's actually very interesting.

You see people here who are protesting the Chinese Communist Party right here in Chinatown.

So it's global, but it's also local too.

Mas Miller, we thank you so much for coverage throughout the hour and throughout the rest of the day right here on the Boombag network.

Meanwhile, that does it for this edition of Bloomberg Tech.

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