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00:00I'm very curious when you talk about the infrastructure, usually talking about an open Internet, right? Open sourcing. What does that mean? What does that look like for China when there are information controls? That in my we were that's the largest constrained to China's I saw quarter January to the ISE development. The reason is, as David Cafferty just mentioned, I have this big, large model requires a lot of training and training. The most important thing is quality and diverse data. But end of the CAC Chinese current censorship on the Internet. There's no such diverse and quality data in Mandarin Chinese, so that will be a bit constrained for for whatever advanced AI algorithms to generate quality content. So that's a biggest concern. But put that aside, I think China got Chinese government has the ambition to develop the next generation, the AI. So they want to develop this into the interface between machine and human beings. And China has a lot market, including the market that doesn't need a lot of generative barriers, content, for example, in games or in metaphors. So that can attract a lot of participation and generate a lot of content. That's that's big advantage. Brendan, from an investment point of view, I think a lot of questions, not just for China, but the sort of excitement more broadly is how do you make money off this ride? Can you respond to what Marina's concerns are about developing AI within, you know, information controls in terms of the Chinese Internet and also the fact that you hold Baidu, you're clearly bullish on some of these ambitions. How do you expect that to be monetized? It's really on the former. You know, we're big believers, that body is going to be able to adhere to the local rules and regulations, which obviously foreign corporations historically some have been willing to adhere to those rules and others have left because of that unwillingness. Rabbani, who is clearly going to be in the camp of adhering to China's local rules in terms of the latter. We're big believers that Bob, who has very wisely invested its cash flow, is coming from its core search business into a number of initiatives. We've seen that in terms of intelligent driving. And here we see another effort that's really come to fruition. Your body has been at this for over just about four years now. Goes back to the first version of the Ernie. Back in March of 2019. So so one of the interesting things about Bob, whose revenues is that historically been very dependent upon that core search business. And you're seeing that non core that non core search business is now up to just about 40 percent of revenue. So we're big believers that, you know, the wise investment from Bodies Management CEO and founder Robin Li are really coming to fruition. And Ernie Bot is one to one of those areas similar to what we're seeing in intelligent driving. Brandon, that's really interesting because for a while. By the disappear from the B A T line up, given of course, that they started investing so much that investors were not really convinced of when this would pay off. So is this the right time to keep adding, to buy, to share suit, to keep investing and get into the market? How long will it take for it to pay off? Yeah, I think it's a great point, Sherry, that we're seeing body would kind of get its mojo back and certainly the stock is very inexpensive. You're about 14 P E for looking P E ratio of only 14 times. Certainly the company believes it is inexpensive that they've over the last several years and even the most recent quarter, they've increased their share buyback program. And so as an investor, you love to see a company believe that the stock is cheap and body is telling investors that they think that this is one of the key growth driver going forward. And so they're buying these shares inexpensively and we like that. Marina, the invisibility into Chinese tech, of course, depends very largely as well on what policymakers zoo, especially in recent years when we've seen a tech billionaire, is so sort of go missing and be out of sight for days and adding to, of course, the concerns about this sector. What are you seeing right now among policymakers on how much they want to support the sector, which also involves tech billionaires? What did you hear from the NPC, for example? Very good question. I have been observing this development quite closely. I can see some positive changes over the two sessions, especially you can see the. The delegates to the two sessions actually have been changed. So quite some new. A I company and delegates have incentives I see at the two sessions and also an eight applications being automobile and auto pilot and and and and and a lot of emerging and technological applications have been seeing as delegates. I think the government has very, very strong ambition to compete vs the US on the next generation of AI because that's basically the foundation of the future technologies for humankind. The problem is, well, quite a bit of tech giants have been hurt quite badly during the past couple of three years. I think they are changing now, especially Visa's Chinese new policies to court national innovation system. They will give obviously necessary support in policy and in finance to support the AI development. But technological risk breakthroughs also requires and require entrepreneurship and not just a centralized budget. So there's positive and negative in terms of a policy for development in the future. Some of the difficulties for China. Do you weigh into the tech decoupling their ability to access key technology and equipment as well as the political aspect? Right. We're still seeing here that tick tock is perhaps considering splitting from byte dance to try and circumnavigate these security concerns. That's obviously a concern. I mean, I agree. I mean, AI applications perhaps do not require a lot of very high end A.I. chips, but training requires a lot of money, a lot of computing power. China currently is a shot of those capabilities building. So that's the biggest concern. But the market is big.

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KraneShares' Ahern, University of Technology Sydney's Zhang on Baidu AI

KraneShares Chief Investment Officer Brendan Ahern and Australia-China Relations Institute, University of Technology Sydney Associate Professor, Research Marina Yue Zhang discuss the highly anticipated release of Baidu's AI chatbot. They speak with Bloomberg's Haidi Stroud-Watts and Shery Ahn on "Bloomberg Daybreak: Australia." (Source: Bloomberg)

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