Appeals Court Allows Possible TikTok Ban | Bloomberg Technology

TikTok Ban Upheld by US Appeals Court

• The US Federal Appeals Court has upheld a law that could potentially ban TikTok in the United States, with the court ruling that national security concerns outweigh First Amendment concerns (2m1s).
• The ban, if implemented, would affect a social media app used by more than half of the American population, and is backed by powerful people, including venture capitalists and private equity funds (2m26s).
• Inside the company, sentiment has been mixed, with some employees feeling they have "seen this movie before" after a similar attempt to ban the app in 2020, but the court's ruling may change people's attitudes (3m9s).
• The court's decision was seen as a sweeping loss for TikTok, with the judges rejecting the company's arguments and stating that national security concerns trump First Amendment concerns (3m56s).
• TikTok's next move is likely to be an emergency petition to the US Supreme Court, as the appeals court's decision leaves little hope for a rehearing (4m50s).
• The case is considered novel in American law and could have significant implications for First Amendment rights, making it an important case for the Supreme Court to consider (5m6s).
• The ban is set to take effect on January 19, and TikTok may try to entice the Supreme Court to review the case before then (4m58s).
• A US appeals court has made a sweeping decision that could potentially lead to a ban on TikTok, with two out of the three judges being Republican-appointed, including one appointed by President Trump, increasing the likelihood that the Supreme Court may agree with the decision (5m32s).
• The Supreme Court may look at the case and decide not to take it up, potentially ending the case, or they may pause the decision and rule on it, although the latter is considered less likely (5m41s).
• If the ban is enforced, TikTok's parent company ByteDance may consider divesting the service to avoid the ban, but this would require selling the algorithm, which China has stated it will not approve (6m10s).
• Alternatively, TikTok could explore selling just the users and platform, without the algorithm, although this would likely significantly impact the service's value and functionality (7m18s).
• President Trump could also direct the Department of Justice to enforce the ban, although this would be highly unusual and would put companies hosting TikTok at significant risk (6m34s).
• An emergency petition to the Supreme Court is expected to be filed soon, asking the justices to pause the January 19 deadline, with a decision likely to be made in mid-January (8m1s).
• The case's outcome will ultimately depend on the Supreme Court's decision, and if they choose not to intervene, the ban will take effect, leaving it up to the new administration to enforce (8m44s).

David Sachs Appointed as White House AI and Crypto Czar

• David Sachs, a venture capitalist and close associate of President Trump, has been appointed as the White House AI and crypto czar, and will guide policy in artificial intelligence and cryptocurrency (8m57s).
• Sachs was a big fundraiser for Trump's presidential campaign and has been close to the Vice President-elect, JD Vance, hosting fundraisers and gathering support from Silicon Valley (9m32s).
• A partnership has been formed, and it is not surprising given the individual's venture-capital history and involvement in successful exits from Silicon Valley (9m50s).
• The individual has a key man risk and has been involved in the angel rounds of successful companies, raising questions about potential conflicts of interest in their new role (10m4s).
• They are part of the ecosystem, hosting a popular podcast where they air controversial opinions, and are seen as tech-friendly, particularly with regards to crypto and AI (10m47s).

HPE Reports Strong Q4 Results Driven by AI

• Hewlett Packard Enterprise (HPE) has reported strong fourth-quarter results, with shares reaching a new record high, driven by sales strength in powering AI workloads (11m47s).
• HPE CEO Antonio Neri attributes the success to more than just AI, also citing the performance of their hybrid cloud business, with growth in both traditional CPU and AI sides (12m16s).
• Demand for HPE's products continues to be strong, with a backlog of over $3.5 billion and a pipeline that is a multiple of that amount, indicating momentum in the market (12m39s).
• The company is seeing a significant uptick in the pipeline for enterprise AI and expects continued growth into 2025, driven by their new architecture, Blackwell (12m48s).
• Blackwell shipments are looking consistent, with a growing number of customers and solid demand across four distinct segments, including model builders, hyperscalers, and tier two and three providers (13m29s).
• The supply chain for Blackwell has been an issue, but HPE expects it to come in due time, with the company continuing to ship H100's and already having over one-third of their backlog in Blackwell (14m23s).
• The demand for HPE's products is resilient, with a diverse backlog and a significant number of customers, indicating a lower risk of disruption (15m0s).
• Antonio Neri expressed confidence in some deals that have been signed, citing strong controls in place to mitigate risks associated with financing, and a focus on allocating supply to the right customers (15m10s).
• Neri mentioned that Hewlett-Packard Enterprise had decided not to pursue a $1.2 billion order due to concerns about the associated risks, and instead chose to focus on growing customers (15m21s).
• The Juniper Networks acquisition is expected to close in early 2025, with Neri stating that the company has received unconditional support from regulatory bodies around the world, and that the deal is seen as pro-competitive (16m7s).
• Neri believes that the combination of Juniper and HP will provide a better ability for the company to compete outside the United States, and that it is good for both competitiveness and national security (16m50s).
• Hewlett-Packard Enterprise owns seven of the top 10 supercomputers, including the top three, which require a lot of networking, making the Juniper acquisition a strategic move (17m15s).

News in Brief: Ubisoft, NASA, Uber, Netflix, US Jobs Data

• Ubisoft's stock price is up 13% due to reports of a potential management buyout, with talks between the company and Tencent being reported by Reuters and other investors (17m47s).
• NASA has delayed a moon flyby until 2026 due to a crucial safety issue related to hardware, with the next moon landing not expected to happen until at least 2077 (18m43s).
• Uber has launched its first robotaxi service in Abu Dhabi, with customers able to request vehicles around key tourist areas, and the company expects to fully launch its driverless service in 2025 (18m59s).
• A year-old movie has become the number one Korean film streamed on Netflix since the South Korean president stunned the nation, depicting the events surrounding a coup in 1979 (19m18s).
• The US jobs data for November has shown resilience, with strong payrolls, and the tech sector is being impacted by this data, with Sarah Franklin noting that the data shows predictability and balance (19m40s).
• The tech sector is seeing incredible times, not just with the jobs report, but with the emergence of digital labor, which is a new entrant to the labor force (20m3s).
• Salesforce is reallocating 1000 workers, with the company looking to augment digital labor, and the impact of this on the labor force is being discussed (20m22s).

AI in the Workforce and the Future of Work

• CEOs are looking to the future and considering how to reshape their workforces by incorporating AI technology to increase productivity and efficiency in both the public and private sectors (20m41s).
• There is a disconnect between the availability of generative AI tools and the workforce's willingness to use them, with some employees fearing they will be deemed lazy or not receiving the necessary training (21m5s).
• AI literacy and proficiency are becoming increasingly important, and CEOs are focusing on scaling and training their workforces to make them proficient in these technologies (21m14s).
• The implementation of AI technology is critical for every job function, whether it's customer service, sales, accounting, or data operations (21m28s).
• The use of AI is expected to bring efficiency gains, and companies are looking for ways to scale their workforces to meet their needs, which may lead to shifts in the labor market and changes in jobs (21m52s).
• According to reports from Deloitte, a quarter of enterprises are expected to deploy digital agents next year, making it essential for everyone to learn this technology (22m14s).

Rubrik Beats Earnings Estimates

• Rubrik has beaten earnings estimates, and BIPUL SINHA will be discussing the driving factors behind this demand (22m36s).

Market Updates: Nasdaq, Crypto, Bitcoin ETF

• The Nasdaq 100 has been grinding higher, up 3% over the last five trading days, with jobs data looking resilient but not too hot (23m12s).
• The crypto market has experienced a volatile ride, with Bitcoin reaching $103,000 before pulling back to $99,178, but is now inching higher (23m33s).
• The SEC announcement and the introduction of new crypto and AI technologies are expected to bring more positive mood music to the crypto space (24m0s).
• The Bitcoin ETF has been successful, with officially $50 billion, indicating strong institutional demand, and Wall Street investors are no longer scared of investing in crypto (24m38s).
• Other areas of growth are expected from institutional and retail investors, but it remains to be seen whether pending ETFs from SRP to Solana will see inflows (25m3s).
• Bitcoin is becoming a popular asset class, with people seeking exposure to it for its potential as "digital gold," a means of hedging against inflation, and a store of value, as evidenced by BlackRock's inclusion of Bitcoin in its 2025 outlook for the first time (26m12s).
• A conversation about cryptocurrency is gaining traction, with even police officers discussing its potential for growth (26m28s).

Rubrik's Strong Earnings and the Cybersecurity Landscape

• Rubrik, a data security software firm, has reported strong earnings, beating expectations and boosting its full-year revenue guidance, resulting in a 34% increase in its stock price to a record high (26m46s).
• The demand for Rubrik's services is driven by the need for businesses to have a resiliency strategy in place to ensure continuity of operations in the event of a cyberattack (27m28s).
• Ransomware attacks are becoming a significant problem, targeting not just large institutions but also smaller and medium-sized enterprises, with healthcare organizations being particularly vulnerable due to the sensitive data they hold (28m19s).
• The outlook for cybersecurity is grim, with the next administration expected to be business-focused, leading to an increase in insider attacks and cyberattacks (30m27s).

Apple to Debut In-House Cellular Modem Chips

• Apple is preparing to debut its in-house cellular modem chips, which will replace components from its partner and adversary Qualcomm, with the new chips expected to launch next spring (29m14s).

Generative AI and Data Security

• Generative AI applications are data-hungry and require significant amounts of data, which is a concern for data security and protection (30m58s).

Rubrik's Soaring Numbers and Revenue Forecast Boost

• Rubrik's numbers are soaring, and the company is beating expectations on earnings, with a revenue forecast boost of 25% for the full year (32m5s).

DocuSign's Q3 Results and Growth Strategy

• DocuSign's third-quarter numbers have beaten expectations, with the company boosting its revenue forecast for the full year, and the CEO attributes this growth to strengths across the board, including improved retention and reduced churn in their existing signature business (32m35s).
• DocuSign has grown its channels from being predominantly direct sales to having a strong traditional channel and building out its partner channel, and the company has launched new products that are contributing to its growth (33m0s).
• The CEO believes that DocuSign is on a positive trajectory of rejuvenation, with a goal to return to double-digit growth, although no particular timeline has been set for this (33m43s).
• The company is working on rolling out new products across more geographies and segments, and as this impacts more customers, it can drive more growth (33m51s).
• The CEO thinks that a combination of continued improvement and retention at the core business, along with the full rollout and adoption of new products, can catalyze double-digit growth (34m49s).
• DocuSign has a broad value proposition that can help transform how agreements get done, and the company sees tremendous greenfield opportunity to deliver on this growth opportunity (35m3s).
• With 1.5 million customers and over a billion signers, the company is growing its customer base 10% year-over-year, and the CEO believes that they will add more customers and signers in the future (35m29s).
• Docusign is present in most large companies worldwide, with over 85% of the Fortune 500 being its customers, and its opportunity lies in adding new broader solutions to its existing customer base (35m50s).
• Historically, Docusign has had competition in the electronic signature space, but it is the market leader and preferred branded solution, with lower price competition (36m15s).
• As Docusign moves into a new space, the competitive dynamics are changing, and the company believes it is well-positioned to articulate its broader mission and execute on it (36m30s).
• Geographically, Docusign is growing faster outside the US than in the US, with major markets like Germany and Japan at an earlier stage of adopting electronic contracting (37m12s).

Meta Platforms Hits Record High, Releases Llama 3.3

• Meta Platforms has reached a new record high following news that TikTok's ban will be pushed until January 19, and the company is releasing its Llama 3.3 model, interweaving generative AI across its product range (38m17s).

Elon Musk's XAI Raises $6 Billion for Supercomputer

• Elon Musk's AI startup XAI has raised $6 billion in new capital, valuing the company at $40 billion, with 97 investors participating, and the funds will be used to build a supercomputer in Memphis, Tennessee (38m49s).
• The supercomputer project is ambitious and expensive, requiring significant funding, which explains why Elon Musk raised an additional $6 billion in May (39m41s).
• Previous investors in XAI include Andreessen Horowitz, Sequoia Capital, and Power and Equity, who are regular investors in Elon's businesses, including Twitter, SpaceX, and Tesla (40m22s).
• XAI's impact on other businesses, including Tesla, is significant, as AI will help innovate and improve Tesla's business model, particularly with its Grok technology (40m54s).
• Elon Musk's business operations involve borrowing resources from one company to help another, with his universe blurring together as he uses X AI with Tesla and considers investing in X AI via Tesla (41m3s).
• The connection between X AI and other businesses in Elon Musk's empire is expected to continue, especially with funding from investors who are also invested in other businesses (41m36s).

Competition in the Generative AI Space

• Sam Altman, CEO of OpenAI, is not worried about Elon Musk's comments on OpenAI's future success, and Meta has announced 600 million monthly users of their generative AI products (41m40s).
• ChatGPT from OpenAI is still the first thing that comes to mind when people think of generative AI, but Meta AI and Grok, built into X, are also notable (42m5s).
• The tech industry has been hitting a wall in building better AI models, with Mark Zuckerberg releasing Llama 3.3 as the next base model (42m56s).
• Leaders of tech companies are making bold bets that they will reach all-knowing, very powerful AI in the next few years, but there are concerns about the pace of progress (43m22s).
• Sam Altman has mentioned 2025 as a target year for significant progress in AI, but some people are concerned that a GPT-5 level model or the next generation model from Anthropic has not yet been seen (43m49s).