WEBVTT - Apple’s Big AI, Siri and Software Launch 0:00:02.520 --> 0:00:13.440 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.480 --> 0:00:17.279 from coast to coast with Caroline Hide in New York 0:00:17.560 --> 0:00:19.560 and ever Low in San Francisco. 0:00:21.840 --> 0:00:25.000 This is Bloomberg Tech coming up all eyes on apples 0:00:25.000 --> 0:00:28.680 developer conferences. The Iphonemaker is set to unveil a revamped series. 0:00:29.120 --> 0:00:31.920 We'll be live from Kupertino plus in video and sk 0:00:32.040 --> 0:00:35.280 Heinez they partner up on next generation AI memory chips 0:00:35.400 --> 0:00:38.800 with a multi year deal and SpaceX gets ready to 0:00:38.840 --> 0:00:39.440 go public. 0:00:39.479 --> 0:00:40.319 Will discuss what to. 0:00:40.280 --> 0:00:44.199 Expect from this week's record breaking IPO. But at the 0:00:44.200 --> 0:00:46.000 moment we turn our attention to what the markets are 0:00:46.080 --> 0:00:48.080 up to and look a reprieve from the sell off 0:00:48.120 --> 0:00:49.320 we saw on Friday. 0:00:49.560 --> 0:00:51.040 Now we're having the best day in. 0:00:51.000 --> 0:00:53.640 About a month for the Nastak one hundred, but remember Friday, 0:00:53.880 --> 0:00:56.680 we had the worst day in a year for this benchmark, 0:00:56.680 --> 0:01:00.320 as technology just saw a real sell off, anxiety that 0:01:00.320 --> 0:01:02.520 maybe we'd run too far, too fast, particularly in the 0:01:02.560 --> 0:01:04.840 world of hardware and chips. Well, today we've bounced back 0:01:04.840 --> 0:01:07.039 on the socks. We're up six point four percent, but 0:01:07.120 --> 0:01:09.000 that's just clawing back some of the losses we saw 0:01:09.080 --> 0:01:12.200 on Friday. After its benchmark had its worst day since 0:01:12.400 --> 0:01:15.440 twenty twenty. So maybe we get a little bit more 0:01:15.440 --> 0:01:17.760 positive momentum, particularly as in videos been talking about and 0:01:17.760 --> 0:01:20.840 as buying opportunity. But also we get intricate news. Look 0:01:20.880 --> 0:01:22.840 at Intel that this is a report coming from the 0:01:22.880 --> 0:01:26.880 information that maybe Google and others are turning to different 0:01:27.080 --> 0:01:30.000 makers manufacturers of their chips, not just TSMC. Could we 0:01:30.000 --> 0:01:32.560 get a big healthy order coming through from Google for 0:01:32.640 --> 0:01:35.360 TVUS from Intel? We charge up twelve percent on that 0:01:35.400 --> 0:01:38.240 particular reporting from the information. But look at what's happening 0:01:38.480 --> 0:01:41.600 in terms of Apple. Look all eyes on what we're 0:01:41.600 --> 0:01:43.080 going to get in terms of sery, what it's going 0:01:43.160 --> 0:01:47.520 to signal to developers. We're currently up stealthily maybe fifteen 0:01:47.680 --> 0:01:51.400 sixteen percent. Yeah, todate, it's the second best magnificent seven 0:01:51.760 --> 0:01:54.520 performance throughout all of those stocks on the year, because 0:01:54.520 --> 0:01:57.040 it even manages to do well when we've got anxiety 0:01:57.080 --> 0:01:57.680 around AI. 0:01:58.040 --> 0:01:59.120 So let's talk about what. 0:01:59.080 --> 0:02:01.320 We therefore could see in terms of a refueling on 0:02:01.360 --> 0:02:04.040 this stock when they start to infuse AI a little 0:02:04.080 --> 0:02:07.720 bit better. Bloomberg Apple, and of course Consumer Tech Managing 0:02:07.800 --> 0:02:11.400 editor Mark German is alongside our own ed Ludlower adds 0:02:11.400 --> 0:02:14.160 over in Kubatino, we're luckily to go into La for 0:02:14.280 --> 0:02:16.400 our man of the moment. When it comes to all 0:02:16.400 --> 0:02:19.640 Apple reporting as well, Mark Gum and we start with you. Look, 0:02:19.800 --> 0:02:21.960 you've been reporting intricately on what we're going to be 0:02:22.000 --> 0:02:23.280 getting in terms of Siri. 0:02:23.680 --> 0:02:26.000 Is it going to live up to the hype? 0:02:26.320 --> 0:02:29.280 I think if you look at the features from AI 0:02:29.440 --> 0:02:33.079 standpoint on Apple devices right now, you basically have two 0:02:33.120 --> 0:02:35.760 subsets of features. You have Apple Intelligence, which are the 0:02:35.800 --> 0:02:39.200 on device models, the cloud models, things like writing tools, 0:02:39.240 --> 0:02:42.160 things like more advanced notifications, and then you have Siri. 0:02:42.680 --> 0:02:46.280 I would say both of those buckets are subpar compared 0:02:46.320 --> 0:02:50.480 to the competition. After today, you're going from subpar and 0:02:50.520 --> 0:02:54.040 you're going to be upgrading to pretty adequate, right And 0:02:54.120 --> 0:02:57.720 so I think this new Sery will be extremely effective 0:02:57.919 --> 0:03:02.359 and enjoyable and useful for mass consumers. And I think 0:03:02.400 --> 0:03:04.400 that will put a little bit of pressure and threat 0:03:04.680 --> 0:03:08.079 on the chat gbts, the Geminis, the anthropics of the world. 0:03:08.160 --> 0:03:11.560 But in terms of game changing innovation, whiz bang new 0:03:11.600 --> 0:03:14.359 AI features, you're not going to see that. You're going 0:03:14.400 --> 0:03:19.040 to see a breakthrough new Siri interface, A Serri app, 0:03:19.160 --> 0:03:24.200 Serie evolving into a chatbot, Siri working really effectively for 0:03:24.240 --> 0:03:27.400 the first time in fifteen years, using those underlying models 0:03:27.400 --> 0:03:30.639 from Gemini. So I think overall, Apple has a very 0:03:30.680 --> 0:03:33.440 positive story to tell on Siri. And then on the 0:03:33.480 --> 0:03:37.240 Apple Intelligence front, the non serie AI features, there's a 0:03:37.240 --> 0:03:40.680 lot of good stuff, things for photo editing. You're also 0:03:40.720 --> 0:03:44.000 going to see some improvements across iOS and new customizable 0:03:44.080 --> 0:03:46.680 camera app. So I think a lot of nice refinements. 0:03:46.720 --> 0:03:49.680 And then the last thing, I'll say, a lot of 0:03:49.680 --> 0:03:53.440 people have been asking for major performance and quality improvements. 0:03:54.000 --> 0:03:56.800 Stop throwing a thousand new features at us every year, 0:03:57.120 --> 0:03:59.520 take a step back and make sure everything you've done 0:03:59.520 --> 0:04:02.240 over the last ten years works well. And so they're 0:04:02.240 --> 0:04:03.720 doing that this year as well. 0:04:06.240 --> 0:04:08.360 The headline mark's going to be the standalone app right 0:04:08.400 --> 0:04:11.160 where Siri goes from a place where you have a 0:04:11.200 --> 0:04:14.680 feature a single voice command gives a single result to 0:04:14.760 --> 0:04:18.000 a multi step task within an app that will follow 0:04:18.040 --> 0:04:22.000 you from iOS to mac os, etc. Give us the 0:04:22.040 --> 0:04:25.200 specifics that you've been reporting on how this revamp Seri 0:04:25.320 --> 0:04:27.200 will work in practice. 0:04:27.440 --> 0:04:29.559 Yeah, I mean, I think more broadly, it's Siri moving 0:04:29.560 --> 0:04:32.040 from a voice assistant where you can ask it questions 0:04:32.240 --> 0:04:34.760 and get an answer to being an always on copilot 0:04:34.800 --> 0:04:37.280 to help you get things done throughout your day. I 0:04:37.279 --> 0:04:42.039 can say things like write an email to add about 0:04:42.080 --> 0:04:45.919 my upcoming schedule and bring over the notes that I've 0:04:45.960 --> 0:04:49.120 taken about our meeting that I want to discuss at 0:04:49.120 --> 0:04:52.760 our in person meeting, and also search the web for 0:04:53.000 --> 0:04:57.640 more in depth details on potential TV wardrobes or specific 0:04:57.680 --> 0:05:00.560 topic and throw that into the email as well summarize 0:05:00.600 --> 0:05:05.120 those details. So multi step queries, pulling information from across 0:05:05.200 --> 0:05:09.880 your own data and the web, and also using context 0:05:09.880 --> 0:05:13.120 from what's on your screen, being able to work across 0:05:13.160 --> 0:05:17.760 your applications, across first party third party apps and your services, 0:05:18.680 --> 0:05:21.280 and it's going to be pretty broad in its functionality 0:05:21.440 --> 0:05:24.800 using those Gemini models. The other thing they're doing is 0:05:24.839 --> 0:05:29.160 they're launching a perplexity competitor chat GPT web search competitor. 0:05:29.279 --> 0:05:32.400 So right now, when you ask things to Siri, if 0:05:32.400 --> 0:05:35.240 it doesn't know the answer, it'll throw you to Google Search, 0:05:35.520 --> 0:05:39.080 or it'll throw you to a chat GPT search. Now 0:05:39.120 --> 0:05:43.119 they have an in house aipowered web search engine within Siri, 0:05:43.960 --> 0:05:47.120 and so basically it's everything they've promised everything people have 0:05:47.200 --> 0:05:50.080 asked for and a little bit more on top. So 0:05:50.160 --> 0:05:53.120 I think this new sery, if it works, which I 0:05:53.160 --> 0:05:55.599 think it will for the most part, is going to 0:05:55.600 --> 0:05:57.320 be a success story for them. 0:05:59.400 --> 0:06:02.279 My interact with Bloombo's Mark German are about to get 0:06:02.320 --> 0:06:06.880 a whole more exciting. Digitally speaking, bluebos Mark German leads 0:06:06.880 --> 0:06:11.520 our coverage of Apple and also consumer technology. Let's go deeper. 0:06:11.760 --> 0:06:15.039 Let's ask what happens next with Caroline a millionacy president, 0:06:15.120 --> 0:06:18.320 principle analyst with creative strategies, and let's start with the 0:06:18.360 --> 0:06:21.479 idea that if we get this the standalone serie app 0:06:21.600 --> 0:06:26.159 that Mark's reported on is whether it's it's as simple 0:06:26.200 --> 0:06:30.280 as displacing an iOS user's use of Chatch, GPT or 0:06:30.360 --> 0:06:34.040 claud as an app within their phone. You see that happening. 0:06:34.920 --> 0:06:38.360 I think it's all about the value that is pertinent 0:06:38.480 --> 0:06:40.880 to me as a consumer, and so I think what 0:06:41.040 --> 0:06:44.360 the app does, as Apple is so focused on devices, 0:06:44.440 --> 0:06:48.279 allow me to take the experience I have with see 0:06:48.640 --> 0:06:51.920 across the multiple devices that I have. And Apple is 0:06:52.000 --> 0:06:54.200 quite unique because at the end of the day, they 0:06:54.200 --> 0:06:58.679 are the manufacturer that has consumers that own so many 0:06:58.920 --> 0:07:03.280 different devices. So they must be catering very carefully to that. 0:07:03.720 --> 0:07:05.919 I don't want to feel like I'm getting a different 0:07:06.600 --> 0:07:09.840 experience depending on which Apple device I'm on. But I 0:07:09.920 --> 0:07:13.480 do think that what Mark was saying about where Apple 0:07:13.520 --> 0:07:17.320 intelligence is today also matters a lot for Apple. And 0:07:17.360 --> 0:07:22.520 it's different than what Claude or chat GPT are doing 0:07:22.520 --> 0:07:26.520 today because is it really embedded in the devices and 0:07:26.720 --> 0:07:29.640 we need to remember what Apple sells is devices. 0:07:30.360 --> 0:07:32.720 I wrote about that today in the Tech in depth 0:07:33.280 --> 0:07:36.960 about this idea that whatever's going on with the smartphone market, 0:07:37.320 --> 0:07:40.800 even if Apple absolutely nails this, it won't change the 0:07:40.840 --> 0:07:44.559 situation this year. Memory pricing is basically Android that's weighing 0:07:44.560 --> 0:07:47.640 on the smartphone market anyway. But there is this idea 0:07:48.160 --> 0:07:52.040 that the next phase of Siri follows me in the 0:07:52.080 --> 0:07:56.160 installed device space, from my coos to my macOS. How 0:07:56.200 --> 0:07:57.000 important is that? 0:07:57.360 --> 0:07:59.600 It's very important because I think that is what is 0:07:59.640 --> 0:08:03.080 going to be physically lock customers in. And I know 0:08:03.160 --> 0:08:05.000 that there's always a bit of a cringe when we 0:08:05.080 --> 0:08:08.520 say lock because when we think about regulators and so 0:08:08.760 --> 0:08:10.800 we'll be interesting to see what happens to see her 0:08:10.840 --> 0:08:14.520 in Europe as a point as a thought, but I 0:08:14.600 --> 0:08:18.560 do think that having the ability to have my experience 0:08:18.720 --> 0:08:22.280 carry across all my devices is what consumers at the 0:08:22.360 --> 0:08:25.320 end of the day one, because that's the true value. 0:08:26.000 --> 0:08:30.160 The next phase of Siri also longer term, either does 0:08:30.280 --> 0:08:35.400 or doesn't drive switches. So one thing that people keep 0:08:35.400 --> 0:08:39.000 saying to me is there's a lack of education about 0:08:39.040 --> 0:08:42.440 how an everyday person might use Siri anyway. You know, 0:08:42.480 --> 0:08:44.880 they might be an Android user and say, okay, wow, 0:08:44.960 --> 0:08:47.640 I like the look of Siri, but what do you 0:08:47.760 --> 0:08:48.760 see out in the world. 0:08:49.480 --> 0:08:53.400 I really struggle to think our AI as a as 0:08:53.440 --> 0:08:59.600 a switcher mechanism because people are still lockingto an ecosystem, 0:09:00.360 --> 0:09:02.680 and I think that if you're looking at the models 0:09:03.400 --> 0:09:05.480 one week, one is ahead and the other one the 0:09:05.520 --> 0:09:09.400 following week, it's pretty much parity, and it will boil 0:09:09.480 --> 0:09:13.120 down to how does it show up within the device. 0:09:13.960 --> 0:09:17.760 Apple has always been really careful of putting attention where 0:09:18.400 --> 0:09:23.920 a mass market and consumer understanding. So Mark mentioned camera. Absolutely, 0:09:23.960 --> 0:09:27.720 I'm expecting intelligence to continue to show up in a 0:09:27.760 --> 0:09:30.240 way that makes the difference to a consumer of it 0:09:30.320 --> 0:09:33.240 just wants to take a great picture. It's simple, but 0:09:33.559 --> 0:09:37.160 it delivers versus trying to be too focus on the 0:09:37.200 --> 0:09:40.000 productivity side of things and the enterprise. 0:09:40.400 --> 0:09:42.520 Apple shares up two and a half percent in the 0:09:42.600 --> 0:09:47.559 moment and are very close to overtaking Alphabet, the parent 0:09:47.600 --> 0:09:51.000 of Google, is the best performing mag seven stock this year. 0:09:52.200 --> 0:09:54.080 The company has been given sort of the benefit of 0:09:54.080 --> 0:09:56.920 the doubt, been called AI adjacent, given a lot of 0:09:56.960 --> 0:09:59.640 credit for not spending tens of billions of dollars on 0:09:59.679 --> 0:10:04.439 develop AI. But from your perspective and creative strategies perspective, 0:10:04.880 --> 0:10:07.880 how much pressure is there on Apple that Siri has 0:10:07.960 --> 0:10:09.360 to be right this time around? 0:10:10.480 --> 0:10:12.920 You know last year this time last year we were 0:10:12.960 --> 0:10:15.800 talking about with consumers are not walking into a store 0:10:15.880 --> 0:10:19.360 to asking for AI. I think it's still like that, 0:10:19.520 --> 0:10:24.000 but consumers are already placing their preference in what chatbot agent, 0:10:24.080 --> 0:10:26.760 whatever you want to call it, they use every day. 0:10:26.840 --> 0:10:30.960 So there's definitely more pressure on Apple to deliver something 0:10:31.080 --> 0:10:35.840 that is comparable to chat, ubt or cloud. 0:10:36.440 --> 0:10:37.880 And in a year's time, you and I can sit 0:10:37.920 --> 0:10:40.600 down again and ask whether a multi step task version 0:10:40.600 --> 0:10:43.679 of Siri that has a agentic capability moves lead or 0:10:43.760 --> 0:10:46.400 Caroline and mis and ac mil a AC principle. Analyst, 0:10:46.600 --> 0:10:51.080 President of Creative strategies, has such grasp on what's happening 0:10:51.080 --> 0:10:52.160 in consumer technology. 0:10:52.200 --> 0:10:55.480 Character she so does the perfect person to have out 0:10:55.760 --> 0:10:57.839 with you and Cooper Tino. Meanwhile, we got so much 0:10:57.880 --> 0:10:59.640 more to come on the show and in video it 0:10:59.720 --> 0:11:03.719 is back sk Heinex's next chapter. Two companies strike a 0:11:03.840 --> 0:11:06.760 multi year deal to build the future of AI memory. 0:11:06.960 --> 0:11:08.480 More on that next, more on what these. 0:11:08.320 --> 0:11:11.640 Markets are up to look Jensen warn himself saying, maybe 0:11:11.640 --> 0:11:13.559 you should start buying the dip. Well, we're up two 0:11:13.559 --> 0:11:15.160 and a half percent if people buy the Dipper, the. 0:11:15.160 --> 0:11:15.959 NASA one hundred. 0:11:15.960 --> 0:11:17.640 We sort of hard the worst day in a year 0:11:17.679 --> 0:11:19.680 on Friday today the best day in a month. 0:11:20.080 --> 0:11:30.560 This is a prem bag tech in Video and sk Heinex. 0:11:30.120 --> 0:11:33.400 They are partnering on next generation AI memory chips. They're 0:11:33.440 --> 0:11:36.240 deepening ties, as is the South Korean chip maker really 0:11:36.280 --> 0:11:39.480 is battling with Well Samsung in its home market in 0:11:39.520 --> 0:11:42.400 this booming memory focus. Now the companies have signed a 0:11:42.480 --> 0:11:45.560 multi year deal spanning chip design and manufacturing for more 0:11:45.679 --> 0:11:48.840 prenom Vexine King, who covers all things semiconductors, joins us. 0:11:48.920 --> 0:11:50.520 And it was just a few days ago that we 0:11:50.640 --> 0:11:54.280 know that well Micron alongside Samsung and sk Heinix are 0:11:54.320 --> 0:11:57.080 going to be there for Verra Rubin, But what is 0:11:57.120 --> 0:11:59.640 this deepening relationship with SKHINEX mean. 0:12:00.679 --> 0:12:03.640 I mean from a technical perspective, the way that memory 0:12:03.679 --> 0:12:07.160 interacts with these processes that in video makes is becoming 0:12:07.200 --> 0:12:11.680 increasingly important. If you want performance to improve, then that interface, 0:12:11.760 --> 0:12:14.440 that way that that information gets conveyed has to get 0:12:14.480 --> 0:12:17.160 better at the rate at which the processor gets better. 0:12:17.480 --> 0:12:19.959 So it makes sense that they'll start talking to each 0:12:20.000 --> 0:12:22.640 other at an early point on the technical side of things. 0:12:22.640 --> 0:12:24.960 And that's what we think is going on in terms 0:12:24.960 --> 0:12:28.520 of the technology. There's also strategic moves and tactical moves 0:12:28.600 --> 0:12:29.800 going on with the companies. 0:12:30.320 --> 0:12:33.960 Tactical moves now, there's moves in the market more broadly 0:12:34.000 --> 0:12:36.040 when you look at the run up that we saw 0:12:36.320 --> 0:12:38.360 after a sell off on Friday, but in particular I'm 0:12:38.400 --> 0:12:40.439 looking at Intel today in now it seems as though 0:12:40.440 --> 0:12:42.480 there's a reporting coming out of the information that maybe 0:12:42.480 --> 0:12:45.280 Intel could be a manufacturer of choice going forward for TPUs, 0:12:45.320 --> 0:12:49.120 for alphabets, chips. How much are we seeing these companies 0:12:49.200 --> 0:12:53.840 just having to rely on other manufacturing partners in TSMC, Yeah. 0:12:53.720 --> 0:12:56.599 I mean, as we reported last week, you'll remember de 0:12:56.679 --> 0:13:00.120 Wi Wooh's story that TSMC is doing its best to 0:13:00.440 --> 0:13:02.800 add as much capacity as it possibly can, but really 0:13:02.880 --> 0:13:06.440 isn't keeping up with the booming demand on the leading edge. 0:13:06.480 --> 0:13:09.800 So of course, if you're Google, if you're anybody, you're 0:13:10.160 --> 0:13:13.439 you're looking at potential alternatives. Intel has said, hey, we're 0:13:13.440 --> 0:13:15.760 going to be great again. We're going to have manufacturing 0:13:15.800 --> 0:13:18.760 capacity for everybody. We haven't seen anybody actually commit to 0:13:18.880 --> 0:13:21.640 using it yet, but clearly you're going to look at 0:13:21.679 --> 0:13:23.439 Samsung and you're going to look at Intel as your 0:13:23.480 --> 0:13:27.160 next best choices after TSMC. Those two companies really have 0:13:27.240 --> 0:13:29.720 to step up. Intel has said, look, as this year 0:13:29.760 --> 0:13:33.040 goes on, you'll start to see customers emerge. You'll start 0:13:33.080 --> 0:13:36.280 to see that business pick up. So far, though, it's 0:13:36.320 --> 0:13:37.040 really struggling. 0:13:37.160 --> 0:13:38.640 Take us back to Samsung, how much of it is 0:13:38.679 --> 0:13:41.520 a headache? If it feels though Jensen is sort of 0:13:41.559 --> 0:13:43.320 anointing sk Heinex in this way. 0:13:44.200 --> 0:13:45.920 Well, there are a couple of things. I mean, Samsung 0:13:46.040 --> 0:13:49.640 is the largest memory chip maker, They've always dominated this market, 0:13:49.720 --> 0:13:53.200 they have the largest capacity. But Skhynix was smart in 0:13:53.320 --> 0:13:56.800 terms of their early shift towards focusing on this market 0:13:56.800 --> 0:14:00.160 on AI basically related memory, and so therefore it make 0:14:00.280 --> 0:14:02.679 sense for Jensen to kind of bat his eyelids at 0:14:02.760 --> 0:14:06.320 SKA to get them to continue to sort of advance 0:14:06.360 --> 0:14:09.440 the art and to force some song to respond to 0:14:09.520 --> 0:14:12.400 that and to bring in that capacity. So for him, 0:14:12.600 --> 0:14:15.120 having these guys competing with each other to sort of 0:14:15.160 --> 0:14:17.600 keep him happy is a really good way to sort 0:14:17.600 --> 0:14:19.920 of move the market forward and keep everybody focused on 0:14:19.960 --> 0:14:21.720 the capabilities that his chips can bring. 0:14:22.000 --> 0:14:24.480 Batting his eyelids, You've always got the best terms of phrase, 0:14:24.520 --> 0:14:27.840 Ian King, Thank you so much. Meanwhile, let's stay in 0:14:27.880 --> 0:14:30.440 South Korea. Intent to today's big number. It's more than 0:14:30.480 --> 0:14:32.680 three hundred and fifty billion dollars. That's how much market 0:14:32.760 --> 0:14:35.480 value was actually wiped out from the Cosby over in 0:14:35.520 --> 0:14:38.640 South Korea amid a brutal sell off. Investors already on 0:14:38.800 --> 0:14:41.280 edge ahead of South Korea's Monday open, but the scale 0:14:41.360 --> 0:14:43.720 of that sell off that we've just seen shocked many 0:14:44.040 --> 0:14:46.760 Cosby a plunge nearly nine percent within minutes. It triggered 0:14:46.800 --> 0:14:50.480 circuit breakers. Volatility surged across the market all about after, 0:14:50.520 --> 0:14:53.120 of course, Friday's tech route in the US and. 0:14:53.040 --> 0:14:56.080 A forty two percent collapse in a triple. 0:14:55.840 --> 0:14:59.280 Leverage career, etf fears of a deeper down term they 0:14:59.280 --> 0:15:02.600 were spreading far. We'll return to that story in a moment. 0:15:02.640 --> 0:15:04.920 But another story we're watching is Son might win freed. 0:15:05.240 --> 0:15:08.400 He's taking his bed for freedom directly to the White House. 0:15:08.400 --> 0:15:11.440 Do you remember him, the FTX co founder formally applied 0:15:11.440 --> 0:15:14.240 for a presidential pardon more than two years after being 0:15:14.240 --> 0:15:17.320 convicted any multi billion dollar collapse of his crypto empire. 0:15:17.640 --> 0:15:20.960 For more, Bloomberg's Aberbanni Morrison joins us. Now he's meant 0:15:20.960 --> 0:15:22.400 to be in prison for a long time. 0:15:23.080 --> 0:15:25.520 Yes, he was sentenced to twenty five years in prison. 0:15:25.680 --> 0:15:28.360 But over the past eighteen months or so, we've seen 0:15:28.440 --> 0:15:31.960 him launch this pretty aggressive campaign to reshape his public 0:15:32.000 --> 0:15:35.320 image and to get in the good graces of the president. 0:15:35.680 --> 0:15:39.280 He's been using a social media platform interviews with conservative 0:15:39.320 --> 0:15:42.480 media outlets to really push his arguments for why he 0:15:42.560 --> 0:15:46.880 deserves clemency and say things that are favorable to the president. 0:15:47.400 --> 0:15:50.640 Okay, what therefore could be landing if a tool We've 0:15:50.640 --> 0:15:54.520 heard any discussion around the White House administration that it 0:15:54.680 --> 0:15:57.200 might be allowing SBF to do that, Well, it was 0:15:57.240 --> 0:15:58.040 quite the opposite. 0:15:58.440 --> 0:16:00.400 The President said in an interview with The New Times 0:16:00.440 --> 0:16:04.359 in January that he had no plans to pardon SBF. 0:16:04.800 --> 0:16:08.400 Yet SBF has a bitted an application anyway. And I 0:16:08.440 --> 0:16:13.800 think a lot of people are getting inspiration from Trump's embrace. 0:16:13.440 --> 0:16:14.720 Of his clemency authority. 0:16:14.800 --> 0:16:18.600 So he's issued more than sixteen hundred grants of clemency 0:16:18.680 --> 0:16:22.960 since the start of his second terms, and sixteen hundred 0:16:23.000 --> 0:16:25.640 to thright. And many of those are white collar defendants 0:16:25.960 --> 0:16:29.080 and figures in the crypto industry like Sam Bankman Freed. 0:16:29.800 --> 0:16:30.880 And some of those are going. 0:16:30.680 --> 0:16:33.800 Through the formal channels through the Department of Justice, but 0:16:33.920 --> 0:16:37.600 others are going through less traditional channels, hiring lawyers and 0:16:37.600 --> 0:16:40.800 lobbyists and consultants who have ties to Trump's inner circle 0:16:41.040 --> 0:16:43.560 to try and get their cases heard and in front 0:16:43.600 --> 0:16:45.640 of the White House. So what we're seeing with Sam, 0:16:46.080 --> 0:16:49.479 he's making these arguments, pointing out the sense of injustice 0:16:49.480 --> 0:16:52.720 he feels, but also trying to remake his. 0:16:52.720 --> 0:16:53.840 Public image a little bit. 0:16:54.240 --> 0:16:56.480 We'll see how this one rings out in the White 0:16:56.480 --> 0:16:58.160 House today. We thank you very much, indeed, but he 0:16:58.240 --> 0:17:01.440 makes Evbany Morrison on all things, Sam aguan Fried look 0:17:01.960 --> 0:17:04.880 Aside from FTX, let's look at what shares a Bitcoin 0:17:04.880 --> 0:17:06.679 are up to at the moment. Because crypto has been 0:17:06.760 --> 0:17:08.159 in the eye of the storm in terms of the 0:17:08.200 --> 0:17:10.800 sell off look risk aversion pervaded it back at the 0:17:10.880 --> 0:17:13.359 end of last week. There was also force selling pressure 0:17:13.359 --> 0:17:16.000 that was perhaps being built by Michael Sailor, and of 0:17:16.040 --> 0:17:18.680 course the fact that his own focus had perhaps been 0:17:18.680 --> 0:17:22.560 to start selling bitcoin. Many had always thought that his DAT, 0:17:22.640 --> 0:17:24.440 his digital asset treasury, would. 0:17:24.320 --> 0:17:25.280 Keep on buying bitcoin. 0:17:25.320 --> 0:17:28.120 But they are back buying today and that's giving some 0:17:28.200 --> 0:17:30.000 confidence back to the market. We're up three and a 0:17:30.040 --> 0:17:32.600 half percent as we see strategy that artist formerly known 0:17:32.600 --> 0:17:36.600 as MicroStrategy back buying. Now coming up, we'll discuss what 0:17:36.680 --> 0:17:41.080 we expect from SpaceX is Astronomical IPO SLAD this week. 0:17:41.640 --> 0:17:42.760 This is Bloomberg. 0:17:42.359 --> 0:17:56.920 Techs Elon Musk wants to build the infrastructure for AI 0:17:57.440 --> 0:17:59.920 in space and he's asking investors to help pay for 0:18:00.680 --> 0:18:04.280 the rocket, satellite and now AI company wants to raise 0:18:04.320 --> 0:18:06.800 around seventy five billion dollars in what will be the 0:18:06.920 --> 0:18:08.360 largest IPO in history. 0:18:08.520 --> 0:18:13.560 Spacexs are is probably our greatest commercial space company hands down. 0:18:13.640 --> 0:18:16.680 It will enable the next iteration of what we want 0:18:16.720 --> 0:18:19.680 to see as the space industry continues to grow. 0:18:19.920 --> 0:18:22.960 This isn't just a space story anymore. After folding in 0:18:23.080 --> 0:18:28.040 Musk's AI startup Xai earlier this year, investors buying into 0:18:28.080 --> 0:18:31.840 SpaceX are also buying into the future potential of grock 0:18:31.960 --> 0:18:36.320 AI models and Musk's vision for massive computing infrastructure. That 0:18:36.440 --> 0:18:39.720 ambition comes with a hefty price tag. New filing shows 0:18:39.720 --> 0:18:43.600 SpaceX's AI business, as in XAI, lost nearly six billion 0:18:43.640 --> 0:18:46.320 dollars last year and billions at the start of this 0:18:46.440 --> 0:18:50.119 year as money poured into computing power and infrastructure to 0:18:50.160 --> 0:18:55.040 compete with Open AI and Anthropic. Still, SpaceX has major advantages. 0:18:55.119 --> 0:18:58.600 Starlink has become a powerful cash generator through its satellite 0:18:58.600 --> 0:19:03.040 internet business, while the copani's launch operations continue to secure 0:19:03.040 --> 0:19:05.560 billions in government and private contracts. 0:19:05.880 --> 0:19:09.920 What people need to realize about this company is it's 0:19:10.080 --> 0:19:12.879 the It isn't just a little bit of ahead of 0:19:12.880 --> 0:19:16.000 the entire launch industry on planet Earth. It's orders of 0:19:16.040 --> 0:19:17.240 magnitude ahead. 0:19:17.040 --> 0:19:20.639 And now Wall Street once in Goldman, Sachs, Morgan, Stanley 0:19:20.640 --> 0:19:23.760 and JP Morgan leading more than twenty banks working on 0:19:23.800 --> 0:19:27.560 the offering, and Musk negotiated record low fees, But the 0:19:27.600 --> 0:19:32.480 IPO also raises big questions like whether investors are comfortable 0:19:32.480 --> 0:19:35.639 bedding not just on must original vision, but making humanity 0:19:35.720 --> 0:19:39.359 a multiplanetary species and getting to Mars, but on a 0:19:39.440 --> 0:19:44.560 future combining rockets, AI, and social media into one sprawling empire. 0:19:44.920 --> 0:19:47.880 And so what we're buying is the next you know, 0:19:48.280 --> 0:19:52.040 the global economy, you know, two doto and three dot 0:19:52.080 --> 0:19:54.879 zero as we look at buying into into SpaceX. 0:19:55.200 --> 0:19:58.600 If that happens, SpaceX could redefine what the modern public 0:19:58.600 --> 0:20:01.159 company looks like on Earth and in space. 0:20:02.320 --> 0:20:04.720 Let's get more what to expect this week with Bloomberg's 0:20:04.720 --> 0:20:07.560 IPA reporter Bailey Lipschualtz, who might already feel a bit 0:20:07.600 --> 0:20:10.080 exhausted to be honest, And every Thursday is sort of 0:20:10.119 --> 0:20:12.560 when we understand its technical kind of price. Fridays when 0:20:12.560 --> 0:20:14.480 it's going to trade. Is there a sense of the 0:20:14.520 --> 0:20:16.000 amount of demand for this right now? 0:20:16.040 --> 0:20:18.439 We already reported on Friday it was oversubscribed. What that 0:20:18.480 --> 0:20:21.919 really just means is they've already corralled more than seventy 0:20:21.920 --> 0:20:23.080 five billion dollars of orders. 0:20:23.160 --> 0:20:25.280 So kind of mixed feelings. 0:20:25.320 --> 0:20:27.080 I talk to some people and they say, well, that's 0:20:27.119 --> 0:20:29.359 obvious these Normally this is a deal, they kind of 0:20:29.359 --> 0:20:32.400 comes together quite quickly. Skeptics are like, well, why isn't 0:20:32.400 --> 0:20:34.520 it three or four times over subscribe already? That's where 0:20:34.520 --> 0:20:36.160 a normal deal would be. You got to keep in mind, 0:20:36.200 --> 0:20:38.600 it's a seventy five billion dollar deal. So the fact 0:20:38.600 --> 0:20:41.040 that right now there's well north of seventy five billion 0:20:41.080 --> 0:20:44.000 dollars of orders from institutions at least gives you some 0:20:44.240 --> 0:20:46.880 sense of kind of what the next few days will 0:20:46.880 --> 0:20:49.800 look like. Obviously, big IPO orders can come in in 0:20:49.840 --> 0:20:53.239 the final day's final hours, and that's totally separate, at 0:20:53.280 --> 0:20:55.720 least according to our understanding of the retail component, which 0:20:55.720 --> 0:20:58.240 we know bankers at least had been kind of setting 0:20:58.280 --> 0:20:59.600 aside about thirty percent. 0:21:00.359 --> 0:21:02.920 Let's talk about what the decision was to fast track 0:21:02.960 --> 0:21:05.560 for some NASA Russell not for the S and P 0:21:05.640 --> 0:21:06.520 five hundred, and does. 0:21:06.440 --> 0:21:08.560 That impact the level of demand in anyway? I think 0:21:08.600 --> 0:21:09.960