# AT&T Reports Greater-than-Expected Mobile Subscriber Gains

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 22 Jul 2026, 21 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/83ccd019-2619-49a3-aba5-b48f01110e73/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu - Kelcee Griffis, Bloomberg Telecom Reporter, discusses AT&T earnings. AT&T added 432,000 monthly wireless phone subscribers in the second quarter, better than the 325,264 that Wall Street had projected. The company reported revenue of $31.6 billion, up 2.3% from a year ago, and adjusted earnings per share of 65 cents, surpassing expectations of 59 cents. - Woo Jin Ho, Bloomberg Intelligence Senior Hardware and Networking Analyst, discusses Super Micro Computer. Super Micro Computer shares rose as much as 25% after the server maker issued preliminary results saying its backlog hit a record on new orders in the quarter of more than $60 billion. - Ken Shea, Bloomberg Intelligence Senior Consumer Products Analyst, discusses earnings from Philip Morris. Philip Morris International shares hit a record after reporting a boost in demand for its smoke-free products. Shipments of smoke-free products rose in the second quarter, mainly driven by its IQOS heated tobacco devices, and net revenue rose on an organic basis. - Gautam Mukunda, Lecturer at Yale School of Management and Bloomberg Opinion contributor, discusses his Opinion column: “Regulate AI like We Do the Airline Industry.” The heads of America's leading artificial intelligence companies agree that the AI frontier needs regulation due to the potential risks from biological weapons. The release of Kimi K3, an open-weight model by a Chinese company, highlights the need for regulation, as advanced AI capability is becoming widely available. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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[0:17] Speaker 1: Business App. Listen on demand wherever you get your podcasts,
[0:21] Speaker 1: or watch us live on YouTube.
[0:24] Speaker 2: Staying with earnings at and T adding more wireless subscribers
[0:28] Speaker 2: and forecast by roughly one hundred thousand customers. The CEO
[0:31] Speaker 2: John Stankey joined Bloomberg Surveillance to discuss the rise in subscribers.
[0:36] Speaker 2: Take a listen.
[0:37] Speaker 3: We can provide world class networks in both wireless and
[0:40] Speaker 3: fix that tackle ninety eight percent of what a customer
[0:45] Speaker 3: needs to do on the Internet. Occasionally they walk off
[0:48] Speaker 3: one of our networks, and as you look at our
[0:50] Speaker 3: partnerships that we're working with the satellite industry, by this
[0:53] Speaker 3: time next year we'll be able to solve that problem.
[0:56] Speaker 3: And so we're the natural place for people to come
[0:58] Speaker 3: and meet their needs on the Internet and do it
[1:00] Speaker 3: easily on one bill, with one set of services and
[1:04] Speaker 3: one support infrastructure. We think we're in a great position
[1:07] Speaker 3: as a result of that.
[1:09] Speaker 2: Kelsey Griffiths is the Bloomberg Telecoms reporter she has been
[1:13] Speaker 2: tracking the earnings today and she joins us right now
[1:15] Speaker 2: from Washington. Ke The mobile phone industry is extremely competitive.
[1:21] Speaker 2: We are bombarded by ads constantly from AT and T, Verizon,
[1:24] Speaker 2: and Team Mobile trying to undercut each other and offer
[1:27] Speaker 2: better terms, better deals. How is AT and T able
[1:30] Speaker 2: to add more monthly wireless subscribers than expected in this
[1:33] Speaker 2: kind of environment.
[1:35] Speaker 4: This is a strategy AT and T has put into
[1:38] Speaker 4: place since about last quarter. So back in March, they
[1:42] Speaker 4: debuted this new plan that is kind of like an
[1:46] Speaker 4: all in approach. They were modeling it after Peloton or
[1:51] Speaker 4: Netflix or one of these sort of like tech lifestyle
[1:53] Speaker 4: subscriptions where you pay one price and you have access
[1:56] Speaker 4: to everything that you hope to get out of it.
[1:58] Speaker 4: So AT and t's version of that is one price,
[2:03] Speaker 4: you get home internet, you get mobile service, and you
[2:06] Speaker 4: get a few connected devices like iPads or Apple watches
[2:10] Speaker 4: thrown in. So that seems like it's been pretty successful.
[2:14] Speaker 4: They have introduced some price increases on I believe with
[2:17] Speaker 4: some of the more legacy plans that was about ten
[2:20] Speaker 4: to twenty dollars per line. But even with those increases,
[2:23] Speaker 4: it seems like customers are responding to some of these
[2:26] Speaker 4: newer offers.
[2:28] Speaker 5: Kelsey talk to us about their return of capital plans
[2:32] Speaker 5: going forward, because I know that's a big part of
[2:33] Speaker 5: the investment story.
[2:36] Speaker 4: Right AT and T has said for a while that
[2:39] Speaker 4: they are heavily invested in returning back to their shareholders,
[2:43] Speaker 4: and today they announce that they're pulling that forward a
[2:46] Speaker 4: little bit. I think they said they're going to buy
[2:48] Speaker 4: back ten billion instead of just eight billion in shares
[2:53] Speaker 4: this year. So that's a modest uptick that kind of
[2:58] Speaker 4: contributes to that optimism that they're expressing in their long
[3:03] Speaker 4: term strategy and growth.
[3:06] Speaker 2: I want to just go back to the competitive market
[3:09] Speaker 2: landscape for AT and T and the other mobile operators
[3:11] Speaker 2: for a moment here, because there's been taught that SpaceX
[3:14] Speaker 2: might enter this space. So what's already hyper competitive, we'll
[3:18] Speaker 2: get even more so what is the latest on that front?
[3:22] Speaker 4: That's right. We've seen the all three of the big
[3:24] Speaker 4: telecom carriers stocks take a pretty substantial hit over the
[3:27] Speaker 4: last several weeks as speculation about what SpaceX might be
[3:31] Speaker 4: up to has sort of taken off. The telecom carriers
[3:34] Speaker 4: have all so far made it pretty clear that they
[3:37] Speaker 4: don't want to do any deals that would offer SpaceX
[3:41] Speaker 4: access to the market as a peer. But at least
[3:44] Speaker 4: T Mobile is working with SpaceX to fill in some
[3:47] Speaker 4: of the gaps in T Mobile's terrestrial network. That was
[3:51] Speaker 4: kind of what John Stankey suggested today. He didn't say
[3:54] Speaker 4: specifically that he wants to do a deal with SpaceX,
[3:56] Speaker 4: but he did say that he sees satellite generally as
[3:59] Speaker 4: being very compli mentory to the ground based network that
[4:02] Speaker 4: AT and T has, and it can actually potentially help them,
[4:08] Speaker 4: you know, make their revenue better because they can fill
[4:12] Speaker 4: some gaps in their network with satellite and potentially retire
[4:15] Speaker 4: some parts of the network that are very expensive to maintain.
[4:19] Speaker 5: CAPEX Kelsey, it's a capital intensive business, is telecom business?
[4:23] Speaker 5: Did the company mention kind of what they're thinking in
[4:26] Speaker 5: terms of CAPEX going forward?
[4:29] Speaker 4: Well, I can tell you that John Sankey is very
[4:31] Speaker 4: bullish on or at least very aware of how agentic
[4:36] Speaker 4: ai is changing the network traffic patterns, and so I
[4:41] Speaker 4: think he said he expects to see nine times enterprise
[4:46] Speaker 4: growth and agentic AI in by twenty thirty five and
[4:50] Speaker 4: seven times the volume of aic AI on the consumer side.
[4:54] Speaker 4: So those massive increases in essentially AI driven traffic are
[5:00] Speaker 4: things that he's planning for, and they do have a
[5:03] Speaker 4: strategy right now, and they're not adjusting that strategy necessarily
[5:07] Speaker 4: to account for in.
[5:10] Speaker 6: Yeah, in their cap Thanks got it. Stay with us.
[5:14] Speaker 2: More from Bloomberg Intelligence coming up after this.
[5:21] Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
[5:24] Speaker 1: weekdays at ten am Easterned on Apple, Cocklay and Android
[5:28] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[5:31] Speaker 1: you get your podcasts, or watch us live on YouTube.
[5:35] Speaker 6: Stay on the earnings front.
[5:36] Speaker 5: Super Micro jumps after early results show rising backlog.
[5:41] Speaker 6: Stock is up twenty four percent today. Just extraorining us.
[5:45] Speaker 6: It's talk to the analyst covers super Micro. That'd be
[5:47] Speaker 6: Wu Jinho.
[5:48] Speaker 5: He's in our Princeton office, which talked to us about
[5:50] Speaker 5: super Micro. What did they say with the results and
[5:52] Speaker 5: why is the stock up so much today?
[5:55] Speaker 7: Yeah, Hey, hey Paul. So essentially it was that stunning
[5:59] Speaker 7: backlock figure that they posted, right, So, if we think
[6:02] Speaker 7: about a month ago when they did an equity raise,
[6:05] Speaker 7: they announced that they had thirty nine billion dollars in
[6:07] Speaker 7: backlog at the month of At the start of June,
[6:11] Speaker 7: that increased to about sixty billion as part of the
[6:14] Speaker 7: pre announcement. So what happens now is that the setup
[6:18] Speaker 7: for her fiscal twenty twenty seven guidance is going to
[6:21] Speaker 7: be really, really good. Consensus prior to the backlog guidance
[6:27] Speaker 7: was at fifty three billion dollars for twenty seven. I'd
[6:31] Speaker 7: be shocked if they don't exceed that.
[6:34] Speaker 2: So if super Micro sees this kind of backlog, what
[6:37] Speaker 2: does it mean for its peers, for its competitors, are
[6:39] Speaker 2: they getting a similar lift?
[6:41] Speaker 7: Well, I mean, you know, that's a great question, Scarlett Dell.
[6:45] Speaker 7: Dell is the market leader in AI server as I
[6:47] Speaker 7: suspect that Dell is going to see similar demand patterns
[6:52] Speaker 7: as well, right, because typically these type of mega deals
[6:56] Speaker 7: AI server deals are dual source. So super Micro is benefiting,
[7:00] Speaker 7: Della is benefiting as.
[7:01] Speaker 6: Well, and dellstock is up ten today in sympathy. So
[7:05] Speaker 6: that probably tells.
[7:05] Speaker 5: The story there, which how does the memory shortage, the
[7:09] Speaker 5: way for the chip shortage and all that kind of stuff,
[7:11] Speaker 5: How does that impact the super micros of the world,
[7:13] Speaker 5: because it doesn't seem to be Yeah.
[7:16] Speaker 7: So you know, we did some analysis on that from
[7:19] Speaker 7: from the AI server front, it's it's clear that the
[7:23] Speaker 7: given the demand for AI servers and the demand for compute,
[7:26] Speaker 7: the neo clouds are more than willing to absorb those costs. Now,
[7:30] Speaker 7: what's happening on the traditional servers right the stuff that
[7:34] Speaker 7: powers our own enterprise data centers. Customers are desperate for
[7:38] Speaker 7: comte compute because the rising memory costs. They want to
[7:41] Speaker 7: avoid the inflation of the server server inflation. So they're
[7:48] Speaker 7: actually I don't know if they're pre purchasing or pre buying,
[7:52] Speaker 7: but they are buying. It hasn't affected the server business
[7:55] Speaker 7: at all. If anything, the vendors have benefited.
[7:58] Speaker 2: Okay, as we mentioned, micro shares up about twenty four
[8:01] Speaker 2: percent today, so getting a big lift, but still, you know,
[8:05] Speaker 2: well below the highs that we saw in early June.
[8:07] Speaker 2: So Ujin this was a preliminary result. The company will
[8:10] Speaker 2: actually formally report its quarterly results in mid August. Have
[8:15] Speaker 2: we seen all the upside here or is there something
[8:18] Speaker 2: that the company might withhold until the actual results that
[8:21] Speaker 2: could give this stuck another kick.
[8:24] Speaker 7: Yeah, So the thing that we're waiting for right now
[8:27] Speaker 7: is the gross margin guidance for twenty seven Scarlet. Look,
[8:31] Speaker 7: they gave phenomenal gross more. They expect phenomenal gross margin
[8:35] Speaker 7: fifteen to seventeen percent for the fiscal fourth quarter, and
[8:38] Speaker 7: they guide it to previously eight point two to eight
[8:40] Speaker 7: point four percent. Look, I think it was one mega
[8:44] Speaker 7: deal that helped them raise that guidance. I do expect
[8:48] Speaker 7: gross margins to come down in twenty seven, but I
[8:52] Speaker 7: suspect that there is an uptick in gross margin overall
[8:55] Speaker 7: from the eight percent that they delivered in twenty six
[8:58] Speaker 7: to around nine to ten percent. If that's going to
[9:01] Speaker 7: be the case, given that the leverage of the model,
[9:03] Speaker 7: you can start seeing a substantial uptick and earnings in
[9:08] Speaker 7: twenty seven, even with the dilution from the equity raise.
[9:12] Speaker 5: Thirty second stuff, which what is the revenue visibility for
[9:15] Speaker 5: a super micro seems seems pretty pretty solid.
[9:20] Speaker 7: I mean from a quarter to quarter basis, Yeah, Paul,
[9:22] Speaker 7: they've missed their guidance for the past three to five quarters,
[9:28] Speaker 7: so their execution has been choppy, but from a full
[9:33] Speaker 7: year basis, it's actually been up into the right given
[9:35] Speaker 7: how these data centers have been sprouting up and they've
[9:39] Speaker 7: been really wanting to get the Nvidia chips in their
[9:43] Speaker 7: buildings as quickly as possible.
[9:46] Speaker 2: Stay with US more from Bloomberg Intelligence coming up after this.
[9:52] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[9:56] Speaker 1: weekdays at ten am Eastern on Applecarclay, and Android Auto
[9:59] Speaker 1: with Bloomberg Business app. Listen on demand wherever you get
[10:03] Speaker 1: your podcasts, or watch us live on YouTube.
[10:06] Speaker 6: More earnings here today.
[10:07] Speaker 5: Philip Marsh thinks Cigarettes p M is the ticker. Some
[10:13] Speaker 5: numbers out today. Stocks up about one point sixty five percent,
[10:15] Speaker 5: stocks the fifty two week high, up nineteen percent. Year
[10:19] Speaker 5: today pltus you get a three percent dividend yield. So
[10:21] Speaker 5: Philip marsharelder has been quite happy.
[10:23] Speaker 6: Let's bring Kenshay.
[10:24] Speaker 5: He's been following this company since the beginning of time
[10:27] Speaker 5: for Bloomberg Intelligence. He's seen all the iterations of Philip
[10:30] Speaker 5: Mars and Altree and all that kind of stuff. So
[10:34] Speaker 5: Ken talk to us about what we saw from Philip
[10:36] Speaker 5: Marsh today.
[10:38] Speaker 8: Yeah.
[10:39] Speaker 9: Hi, Well, if Phillip Morris's numbers today were really good,
[10:42] Speaker 9: that the headline members top line ten percent, beat five percent, expectations,
[10:48] Speaker 9: EPs up fifteen percent, expectations were for seven You know,
[10:52] Speaker 9: initially despite those strong members, initially the stock in the
[10:56] Speaker 9: pre market was down and I was scratching my head,
[10:59] Speaker 9: and I guess it was because they lowered their guidance
[11:02] Speaker 9: on a after currency basis, and this company is very international,
[11:06] Speaker 9: hence the name, and they said, look, you know, currencies
[11:09] Speaker 9: are not going to be quite as favorable as we
[11:11] Speaker 9: saw a last quarter, but are adjusted currency numbers, we're
[11:19] Speaker 9: still looking for high single digit EPs growth. I think
[11:21] Speaker 9: investors digested that they got bullish again.
[11:25] Speaker 2: Right, Philip Morris is basically the international business, right, I mean,
[11:29] Speaker 2: Autria is the domestic business. And Philip Morris I believe
[11:32] Speaker 2: sells Marlboro's cigarettes outside the US.
[11:37] Speaker 9: That's right, Squirrel. It in a late ninety I should
[11:40] Speaker 9: say two thousand and eight, I believe it was this
[11:42] Speaker 9: company split. Phillimore's International basically took the Marlborough name and
[11:46] Speaker 9: the franchise outside the US. Ultria, a holding company, owns
[11:50] Speaker 9: pm USA, which owns the Marvel name in the US.
[11:53] Speaker 9: Since that time, though, the two companies have agreed to
[11:56] Speaker 9: allow pm I to sell non suit You're at tobacco
[12:00] Speaker 9: products in the US, and that's why you're seeing them
[12:03] Speaker 9: sell zin you know, the oral, the nicketine products, and
[12:08] Speaker 9: soon they're going to launch their heat Nott burned vapor
[12:10] Speaker 9: product in the US, a big potential growth market.
[12:14] Speaker 6: What is Zin? It's all over social media. Can you
[12:16] Speaker 6: explain this to me.
[12:19] Speaker 9: Zin is an oral nicotine product, Paul. It comes in
[12:21] Speaker 9: those little round cans, maybe plastic containers, but in if
[12:28] Speaker 9: you have twenty pouches that you can get your nicotine buzz.
[12:31] Speaker 9: It's a non tobacco product, you know, it's bacco free,
[12:33] Speaker 9: and you get your nicotine buzz without the ire of
[12:39] Speaker 9: your neighbor at work or on the subway or whatever
[12:43] Speaker 9: getting in the way that you're smoking or vaping next
[12:46] Speaker 9: to them. So it's a very discrete way of getting
[12:48] Speaker 9: your nicotine and it's doing really well. A lot of
[12:50] Speaker 9: smokers are switching over.
[12:52] Speaker 2: Interesting all right, Is it like nicotine gum? Is it
[12:55] Speaker 2: meant to kind of get you off of smoking? Or
[12:57] Speaker 2: is it just a flat out replacement. I mean, it's
[13:00] Speaker 2: the idea like a smoking cessation device.
[13:03] Speaker 9: It's mostly that, yes, yes, girl, And that's what the
[13:05] Speaker 9: intent is, and that's why the FDA has granted it
[13:09] Speaker 9: recently the authorization to promote it as a less harmful
[13:13] Speaker 9: source of nicotine as opposed to cigarettes. You know, it's
[13:16] Speaker 9: the inhalation of carbons that causes the harm. The FDA
[13:20] Speaker 9: acknowledges that if you get your nicotine, you know, through
[13:23] Speaker 9: your mouth, whatever it's, it's bypassing that harm. Not to
[13:27] Speaker 9: say nicotine is completely safe, but it's a much less
[13:30] Speaker 9: harmful form of nicotine ingestion.
[13:34] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
[13:41] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[13:45] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[13:48] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[13:51] Speaker 1: you get your podcasts, or watch us live on YouTube.
[13:55] Speaker 2: AI very much on our minds right now, and you know,
[13:59] Speaker 2: we look ahead to some of the bigger picture issues
[14:03] Speaker 2: that we need to resolve, and regulation is and has
[14:06] Speaker 2: been coming up quite a bit. Our next guest suggests
[14:10] Speaker 2: that perhaps we think about regulating AI the way that
[14:13] Speaker 2: we regulate the airline industry. Gatamconda is lecture at Yale
[14:17] Speaker 2: School of Management and a Bloomberg Opinion contributor, and this
[14:20] Speaker 2: is exactly what he's written about. Gotam, just walk us
[14:23] Speaker 2: through your thesis here about regulating AI using an FAA
[14:27] Speaker 2: kind of approach.
[14:29] Speaker 8: Right, So let's think about this from you know what
[14:31] Speaker 8: the industry itself says is that this is a technology
[14:34] Speaker 8: that we'll have not just gigantic economic implications, but gigantic
[14:38] Speaker 8: security implications. Right that they're already finding evidence as a
[14:41] Speaker 8: technology that can help you do cybersecurity attacks, that can
[14:44] Speaker 8: help maybe even in the with development of sort of
[14:47] Speaker 8: chemical or biological weapons. That sounds like something that the
[14:51] Speaker 8: government needs to step in, right. There needs to be
[14:52] Speaker 8: some regulation of that when you talk about those kinds
[14:54] Speaker 8: of risks. So then if you look at the industries
[14:57] Speaker 8: and the areas where that risk has been successfully managed,
[14:59] Speaker 8: the aviation just stands out. It's just head and shoulders
[15:02] Speaker 8: above everyone else. I would saying that if you could,
[15:04] Speaker 8: you know, you could tell people one hundred you know,
[15:06] Speaker 8: one hundred years ago that you could go from anywhere
[15:09] Speaker 8: in the world to anywhere in the world in twenty
[15:11] Speaker 8: four hours in safety so complete that it is safer
[15:17] Speaker 8: to be on the airplane than driving to and from
[15:19] Speaker 8: the airport. And the worst thing that would happen to
[15:21] Speaker 8: you is you complain about the quality of the pretzels.
[15:24] Speaker 8: They would say that sounds you know, that's a miracle,
[15:26] Speaker 8: that is an astonishing achievement, and you cannot separate out
[15:29] Speaker 8: that level of success and that level of innovation from
[15:32] Speaker 8: the success of the FAA, the you know, American regulatory agency,
[15:36] Speaker 8: which has just led the world in regulatory safety. So
[15:39] Speaker 8: if we've done so well with such an important industry,
[15:41] Speaker 8: I think we can learn from that.
[15:43] Speaker 5: Is an argument to be made Gotham, that we that
[15:46] Speaker 5: we as society it might be too late to regulate AI.
[15:49] Speaker 6: Maybe it's there are it's already kind of out there.
[15:53] Speaker 8: So it is out there, but it's not to The
[15:57] Speaker 8: question is, you know, it might be too late to
[15:59] Speaker 8: elimit all of the potential harms. But if we're looking
[16:02] Speaker 8: at the curve and the curve keeps getting steeper and
[16:05] Speaker 8: moving faster, it's not too late to obviate the worst ones, right,
[16:08] Speaker 8: So the really big risks aren't there yet. You hear
[16:11] Speaker 8: people talking about AIS used in biological weapons. That's a
[16:14] Speaker 8: place where I've published articles, and we're still quite a
[16:17] Speaker 8: few years away from that, right, So working with biological
[16:20] Speaker 8: systems still involves a lot of handwork, involves people, It
[16:23] Speaker 8: involves a lot of sort of tacit skills. That's there.
[16:26] Speaker 8: It's but it is going away. So we want to
[16:29] Speaker 8: have these regulatory barriers in place before we lose the
[16:32] Speaker 8: safety that the safety that we were sort of we
[16:34] Speaker 8: sort of inherited.
[16:36] Speaker 2: So China, Chinese company Moonshot released Kimmy K three, and
[16:42] Speaker 2: we talked about this AI model and how disruptive, potentially
[16:44] Speaker 2: disruptive it could be. Do we think that China is
[16:47] Speaker 2: going to move faster than the US on regulating AI?
[16:51] Speaker 8: So this is a fascinating question, and there's clearly a
[16:53] Speaker 8: lot of debate in China, and the Chinese regulatory state
[16:56] Speaker 8: is quite advanced, and you know they have they have
[16:59] Speaker 8: a deference to sort of technical expertise that we don't
[17:02] Speaker 8: that might allow them to do that. But when we
[17:04] Speaker 8: think about these these open weights models that are coming
[17:07] Speaker 8: out of China, however impressive they are, they are also
[17:10] Speaker 8: very clearly sort of behind what the United States has,
[17:13] Speaker 8: and in quite a few cases they seem to be
[17:15] Speaker 8: heavily based on American models, so much so that if
[17:17] Speaker 8: you take Kimmy and you ask it what is your name?
[17:20] Speaker 8: Its answer will be my name is Claude Bianthropic, which
[17:24] Speaker 8: is kind of a flag as to where they might
[17:26] Speaker 8: have gotten that data from. Right, And so what I
[17:29] Speaker 8: would say is in this do allue but what we've
[17:31] Speaker 8: learned is aviation is an incredibly cooperative space, right, It's
[17:34] Speaker 8: both competitive and cooperative. Everyone wants to have the world's
[17:38] Speaker 8: leading airplane makers, it wants to have the world's leading airlines,
[17:42] Speaker 8: but they also understand that we've all got to work
[17:44] Speaker 8: together in order to make those safe. And what the
[17:47] Speaker 8: FAA was able to do was to create international norms
[17:49] Speaker 8: of collaboration by being the best regulatory agency in the world.
[17:54] Speaker 8: So every one of the world sort of looked at
[17:55] Speaker 8: the FAA and took their lead from the FAA. That again,
[17:58] Speaker 8: is the same model we can do where we can
[18:00] Speaker 8: get the Chinese and Us to agree on a regulatory
[18:02] Speaker 8: harma regulatory harmonization that might make it safe for everybody
[18:06] Speaker 8: because we know they can because we've done it before.
[18:09] Speaker 5: What has China said on this matter, if anything, as
[18:12] Speaker 5: it relates to just broadly regulating or controlling AI.
[18:16] Speaker 8: Yeah, there's been some really interesting discussions, but it hasn't
[18:19] Speaker 8: come out yet, right, So it's pretty clear that they
[18:21] Speaker 8: have some concerns about the will AI systems, and they're
[18:24] Speaker 8: willingness to sort of talk about issues like Tianneman Square.
[18:26] Speaker 8: They've cracked down on that and made it much more
[18:28] Speaker 8: difficult for these systems for their systems to do that.
[18:31] Speaker 8: There are a bunch of other areas where they've talked
[18:33] Speaker 8: about it, but so far it's been almost a surprisingly
[18:36] Speaker 8: light touch, I think, at least in part because the
[18:39] Speaker 8: Chinese attitude towards these systems is very different from ours. Right,
[18:42] Speaker 8: the Chinese AI community is not consumed with the possibility
[18:45] Speaker 8: of superintelligence or ending of the world. They're sort of like,
[18:48] Speaker 8: we're a billding these things. Then we'll be able to
[18:49] Speaker 8: apply them in factories and make our factories more efficient.
[18:52] Speaker 8: That is a lot less likely to generate fear, and
[18:55] Speaker 8: you know, might actually be more likely to generate short
[18:57] Speaker 8: term economic returns too.
[18:59] Speaker 2: Okay, is not exactly the leading edge of AI innovation.
[19:03] Speaker 2: But Europe is very good on regulation. They spend a
[19:05] Speaker 2: lot of time on that. Has europset or done anything
[19:08] Speaker 2: that kind of creates a bit of a template.
[19:11] Speaker 8: So I would say, not yet, And I want to
[19:14] Speaker 8: sort of push that on. When you say they're very
[19:16] Speaker 8: good at regulation, what they're they're often are is they
[19:18] Speaker 8: have a heavier hand.
[19:19] Speaker 2: Okay, regula, Yeah, maybe that's a better way to put it.
[19:22] Speaker 8: Yeah, But you know, like I think the American regulatory
[19:25] Speaker 8: state that we established, you know, up until pretty recently
[19:28] Speaker 8: with agencies like the FDA, was incredibly successful. We managed
[19:31] Speaker 8: to get both high levels of safety and high levels
[19:34] Speaker 8: of innovation at the same time. Those weren't those aren't right,
[19:36] Speaker 8: Those weren't in conflict. They were together. The reason that
[19:39] Speaker 8: the airline industry was able to the aviation industry was
[19:42] Speaker 8: able to progress so quickly was because people trusted that
[19:45] Speaker 8: the American government would keep it safe. And so this
[19:48] Speaker 8: is sort of a point that people in the industry
[19:49] Speaker 8: who sort of keep it weakening the you know, supporting
[19:52] Speaker 8: the weakening of the federal government or things like that,
[19:54] Speaker 8: they are fundamentally misunders misunderstanding the situation, and they should
[19:59] Speaker 8: they should be really careful. They might get what they
[20:01] Speaker 8: want for what they're asking for, because if they get
[20:04] Speaker 8: a US government that is too weak to regulate AI,
[20:07] Speaker 8: what they will get is also an American public that
[20:09] Speaker 8: rejects AI entirely in an industry that will die on
[20:11] Speaker 8: the vine.
[20:12] Speaker 6: Here thirty seconds left. What is the Trump administration set
[20:15] Speaker 6: on this matter?
[20:15] Speaker 8: If anything, They've started to talk about banning Chinese open
[20:20] Speaker 8: weights models, and that's probably gonna be my next column
[20:22] Speaker 8: because I said, I'm not sure what I think about that,
[20:24] Speaker 8: but that seems to me that that is walking down
[20:25] Speaker 8: a very slippery slope because those open weights models are
[20:28] Speaker 8: a big threat to the economics of our frontier labs,
[20:32] Speaker 8: but they're pretty great for everyone else, So you're making
[20:34] Speaker 8: a pretty striking trade there.
[20:38] Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
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