WEBVTT - Warner Bros. Discovery Reopens Paramount Talks; Invesco's Brian Levitt

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a

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<v Speaker 1>live from coast to coast with Caroline Hyde in New

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<v Speaker 1>York and Eva Low in San Francisco.

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<v Speaker 2>This is Bloomberg Tech coming up. Warner Brothers reopens negotiations

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<v Speaker 2>with Paramount Skuidance after it proposed or hinted at raising

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<v Speaker 2>its bid and sweetening other terms of its offer plus

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<v Speaker 2>renewed selling in several tech giants are weighing on stocks

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<v Speaker 2>with lingering anxiety over the outlook for AI, and Thrive

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<v Speaker 2>Capital raises more than ten billion dollars in its largest

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<v Speaker 2>fund ever, giving the firm an expanded war chest to

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<v Speaker 2>invest in AI. Welcome to Bloomberg Tech, and this is

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<v Speaker 2>what markets look like right now. We've carried over the

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<v Speaker 2>holiday weekend in the US to the same anxiety and

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<v Speaker 2>we're going to talk later in the program about the

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<v Speaker 2>contradiction right now hard of the AI trade and as

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<v Speaker 2>that one hundred off five percentage point chips kind of

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<v Speaker 2>dragging us down mag seven Bitcoin at sixty seven thousand

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<v Speaker 2>US dollars per token. Of course, it continues to trade

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<v Speaker 2>twenty four to seven, but over the weekend, a kind

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<v Speaker 2>of three day period there was a lot of geopolitical

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<v Speaker 2>tension driving it. Our top story is Warner Brothers Discovery

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<v Speaker 2>reopening talks with paramount S Guidars. Netflix has issued them

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<v Speaker 2>a waiver they can do so. It's a seven day

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<v Speaker 2>waiver through the February twenty third, by which point they

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<v Speaker 2>either need to give a.

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<v Speaker 3>Sweetened, improved bid or something else needs to happen. Let's

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<v Speaker 3>get the details.

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<v Speaker 2>Bloombose Lucas share leads our screen time team and coverage

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<v Speaker 2>of media and entertainment. This is actually a little bit

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<v Speaker 2>more difficult to understand that then simply negotiations reopening. Talk

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<v Speaker 2>us through the deadlines, the timeline and what's new Lucas well.

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<v Speaker 4>The news is obviously that Warner Brothers decided to talk

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<v Speaker 4>to Paramount. They have not been speaking for a couple

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<v Speaker 4>of months. Paramount kicked off this wholesale process last year

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<v Speaker 4>when it kind of sent over an an uninvited to

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<v Speaker 4>offer basically for all of Warner Brothers Discovery. It then

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<v Speaker 4>spent a couple of months increasing its offer for every

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<v Speaker 4>few weeks.

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<v Speaker 5>Trying to win.

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<v Speaker 4>It lost the Netflix and Warner Brothers Discovery has spent

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<v Speaker 4>the last couple of months sort of trashing Paramount. Both

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<v Speaker 4>sides kind of waging war in public, if you will.

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<v Speaker 4>But Paramount has gradually increased more and more pressure, addressed

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<v Speaker 4>more of the board's concerns, and is now at a

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<v Speaker 4>point where I think Warner Brothers Discovery feels both out

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<v Speaker 4>of pressure from its shareholders and just because they're sort

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<v Speaker 4>of tired of this, that they want to engage with

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<v Speaker 4>Paramount for a week, see what happens, and if they

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<v Speaker 4>can reach a better deal then obviously you know that

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<v Speaker 4>the board is going to do its fiduciary.

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<v Speaker 2>Duty, and we had some reporting about this over the

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<v Speaker 2>weekend before the formal announcement this morning. Part of this

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<v Speaker 2>is one of Paramount's bankers signaling to the board that

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<v Speaker 2>there will be an improved offer, but that they haven't

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<v Speaker 2>yet made their best offer.

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<v Speaker 3>What do we know about that?

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<v Speaker 4>Well, Paramount has been saying for a couple of months

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<v Speaker 4>that its offer is not last and final, and Warner

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<v Speaker 4>Brothers Discovery shareholders have been waiting for Paramount to increase

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<v Speaker 4>the offer from the thirty dollars a share. To your point,

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<v Speaker 4>some a representative of Paramount's guide Ace had indicated to

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<v Speaker 4>someone on the board of Directors of Warner Brothers Discovery

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<v Speaker 4>that they would go up to thirty one dollars a share.

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<v Speaker 4>My suspicion is that thirty one dollars a share still

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<v Speaker 4>won't cut it. So the question is Paramount going to

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<v Speaker 4>go to thirty two, thirty three, thirty four, thirty five,

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<v Speaker 4>and at what point is that beyond what Netflix is

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<v Speaker 4>willing to match, because keep in mind that Netflix still

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<v Speaker 4>has a deal with Warner Brothers Discovery and has the

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<v Speaker 4>right to match any superior Paramount offer.

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<v Speaker 3>Netflix has come out with.

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<v Speaker 2>I think we're talking about this offline, A strong statement,

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<v Speaker 2>a lengthy statement, just summarize what Netflix's position is here

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<v Speaker 2>and where they fit into the idea that negotiations now

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<v Speaker 2>are open for a window of time between Warner Brothers

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<v Speaker 2>Discovery and Paramount's guidance.

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<v Speaker 4>Well, some of those sort of public hostilities or disagreements

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<v Speaker 4>that I referred to earlier, I think, or what Netflix

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<v Speaker 4>is really seeking to attack with it state.

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<v Speaker 3>You know, they are getting very tired.

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<v Speaker 6>Of Paramount saying that Paramount.

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<v Speaker 4>Has a clearer path to regulatory approval and offers a

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<v Speaker 4>superior deal. And so Netflix goes through all the reasons

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<v Speaker 4>why regulators might be concerned about a Paramount deal including

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<v Speaker 4>some of their international financing and the concentration owning two

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<v Speaker 4>different movie studios. And that is also a jumping off

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<v Speaker 4>point for Netflix to argue that the Paramount deal would

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<v Speaker 4>be worse for Hollywood because Paramount would be a heavily

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<v Speaker 4>indebted company that would have to cut billions of dollars

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<v Speaker 4>in costs, whereas Netflix is buying a studio that it

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<v Speaker 4>doesn't have in house, and so it would preserve most

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<v Speaker 4>of those jobs.

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<v Speaker 2>We're just showing the bi Bloomberg Intelligence react, by the way,

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<v Speaker 2>which is pretty punchy. Netflix should walk away as Warner

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<v Speaker 2>m and A drama heats up. Maybe we'll get to

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<v Speaker 2>Githa later in the week. Bloom most Lucas, sure you've

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<v Speaker 2>led the way on the reporting on this one.

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<v Speaker 3>Thank you so much. Let's go back to markets.

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<v Speaker 2>Jitters around the software sector are sending investors in search

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<v Speaker 2>of safety. Some of the industry's biggest names have lost

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<v Speaker 2>hundreds of billions of dollars in market value so far

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<v Speaker 2>this year to spending anxiety. Bank of America's latest fund

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<v Speaker 2>manager survey shows a record share of investors think companies

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<v Speaker 2>are overspending. This as the four largest US tech firms

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<v Speaker 2>project roughly six hundred and fifty billion in combined spending

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<v Speaker 2>this year. Let's get the latest with Ted Watson bed

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<v Speaker 2>managing partner. This is the heart of the AI trade

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<v Speaker 2>right now. The contradiction in AI either AI is going

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<v Speaker 2>to change the old economy in the new economy or

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<v Speaker 2>we are in an AI bubble and for lots of

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<v Speaker 2>people both can't be true at the same time kind

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<v Speaker 2>of reflected in the trading of recent days.

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<v Speaker 3>Where do you sit on that dead I.

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<v Speaker 7>Think if you if you look at the agentic acceleration,

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<v Speaker 7>this is something you can't ignore in relationship to traditional sets.

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<v Speaker 7>I mean, the problem with the reason why the IGV

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<v Speaker 7>is down over twenty two percent year.

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<v Speaker 6>Of to day.

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<v Speaker 7>Is people have a real worry on how to model

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<v Speaker 7>these traditional SaaS companies from a free cash flow perspective,

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<v Speaker 7>a multiple free cash.

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<v Speaker 6>And that's the big problem.

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<v Speaker 7>I think over the weekend two days ago when OpenAI

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<v Speaker 7>bought open claw, that just gave more credence to the

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<v Speaker 7>segentic explosion. If you look at some of the token

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<v Speaker 7>growth that you're seeing, and this is why the cloud

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<v Speaker 7>titans can't keep up with compute demand is some of

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<v Speaker 7>the token growth that you're seeing our triple digits month

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<v Speaker 7>over month. This is not sequential. This is not you

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<v Speaker 7>over year, this is month over month growth.

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<v Speaker 2>Can I just jump in there real quick? So I

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<v Speaker 2>didn't expect you to go to open ai, open claw.

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<v Speaker 2>That blew up right over the weekend on social media.

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<v Speaker 2>And what I'm trying to do is understand the story

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<v Speaker 2>of how public market investors are treating this versus what

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<v Speaker 2>we see in private markets that clearly is a consolidation

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<v Speaker 2>of different platforms, right is try and unpick that for me?

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<v Speaker 7>I think it's it's really a debate between the old

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<v Speaker 7>and the new. And I think when you when you

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<v Speaker 7>can't model the old going back to that SaaS assumption

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<v Speaker 7>on free cash flow multiples and you're looking at this

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<v Speaker 7>acceleration on a gentic people just are getting out of

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<v Speaker 7>the way, to be quite honest with you, and they're

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<v Speaker 7>going to six other sectors that are more infrastructure related.

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<v Speaker 7>And the feeling is that some of the traditional SaaS

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<v Speaker 7>companies will have problems going from a traditional SaaS model

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<v Speaker 7>to a consumption model, which is.

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<v Speaker 6>All the agent base.

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<v Speaker 7>And it's a mess. It's an absolute mess. If you're

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<v Speaker 7>a software investor trying to model these.

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<v Speaker 2>Companies ted with respects, I don't I don't think you

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<v Speaker 2>really answer my question, which is, you know, the contradiction

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<v Speaker 2>of the old and new economy software more recently being impacted.

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<v Speaker 2>And then are we or are we not in an

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<v Speaker 2>AI bubble? You mentioned cash flows. One of the introsting

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<v Speaker 2>pieces of math that people are doing is the capital

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<v Speaker 2>expenditures commitment of the hyperscalers and its impact on cash

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<v Speaker 2>flow or proportion of cash flow. Basically cash flow is

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<v Speaker 2>getting wiped out. How do you feel about that?

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<v Speaker 7>I think it's a problem X of Google and Meta

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<v Speaker 7>which have their supporting businesses on the advertising that can

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<v Speaker 7>actually make up that free cash flow where I get

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<v Speaker 7>pushbacks names like Amazon and even Microsoft to some degree,

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<v Speaker 7>to a more limited degree, but if you look at Amazon,

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<v Speaker 7>I mean they essentially had to lay off a very

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<v Speaker 7>large component of their white collar employment based to maintain

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<v Speaker 7>even getting to neutral free cash flows.

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<v Speaker 6>So it is an issue.

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<v Speaker 7>One of the things that we are not talking about

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<v Speaker 7>is memory. And when you have this token, I would

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<v Speaker 7>say acceleration and you have inference also expanding. We have

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<v Speaker 7>a huge memory problem and I would almost put it

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<v Speaker 7>at a crisis level where you're not going to have

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<v Speaker 7>enough memory to support this compute over the next two years.

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<v Speaker 6>That's a real issue out there.

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<v Speaker 2>Next week you can video Ports reports its earnings and

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<v Speaker 2>it's the biggest beneficiary of the capsule expendensis numbers we

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<v Speaker 2>talked about. To this point, it has shown massive real

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<v Speaker 2>top line growth. What would it need to show evidence

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<v Speaker 2>to carry the rest of the market with it next

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<v Speaker 2>Wednesday evening.

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<v Speaker 7>I think number one, they have to they have to

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<v Speaker 7>assure investors that they don't have a memory problem, which

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<v Speaker 7>they don't. I mean, Jensen was so far ahead of

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<v Speaker 7>this memory issue by locking up supply.

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<v Speaker 6>That's number one.

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<v Speaker 7>Number two is some of the blackwall numbers as well

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<v Speaker 7>as transitioning.

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<v Speaker 6>The timing of Ruben is also very very important.

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<v Speaker 7>This is a real change an infrastructure on Reuben, and

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<v Speaker 7>I think anything that they I can assure investors that's

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<v Speaker 7>on track, and the adoption of Ruben from a system

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<v Speaker 7>perspective is now cannibalizing any of their business as it

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<v Speaker 7>relates to for example, Google's TPUs or infant soldiers.

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<v Speaker 6>They've got to play in both realms.

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<v Speaker 2>Ted Mortenson of BED, I think you've set us up

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<v Speaker 2>for a number of weeks to come, thank you very much.

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<v Speaker 3>Indeed they're coming up.

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<v Speaker 2>Fords charges ahead with a more affordable next gen EV

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<v Speaker 2>shares a little softer, but came back after headlines hit

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<v Speaker 2>We're gonna go under the hood next Sploomberg Tech. Ford

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<v Speaker 2>may have taken a nineteen point five billion dollar hit

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<v Speaker 2>to overhaul its EV business last year, but the US

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<v Speaker 2>car maker is out to prove that it hasn't retreated

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<v Speaker 2>altogether from electric vehicles. For reveal details of how it's

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<v Speaker 2>engineering a next gen EV platform to go further on

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<v Speaker 2>a single charge and still start at thirty thousand US dollies.

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<v Speaker 3>To do this, the.

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<v Speaker 2>Company's head of EV's Doug Field, told Bloomberg it had

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<v Speaker 2>to start with a clean sheet for its organization and

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<v Speaker 2>design process. Let's get more with bloombergs Keith Norton, who

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<v Speaker 2>has covered this company inside and out since nineteen eighty five.

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<v Speaker 2>And it's important to be specific here, right. This was

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<v Speaker 2>an engineering exercise, the Universal EV. What did they actually

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<v Speaker 2>do to engineer out cost and stay in the game.

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<v Speaker 8>Well, as you said, they did it far from Detroit.

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<v Speaker 8>This was set up in California. It was led by

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<v Speaker 8>Alan Clark, who's a former Tesla engineer, and they've just

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<v Speaker 8>they sweat the details. It's like improvement by a thousand cuts.

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<v Speaker 8>And they've managed to shrink the size of the battery

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<v Speaker 8>on the CV. The battery is the most expensive component

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<v Speaker 8>of an electric vehicle, while at the same time extending

0:11:50.400 --> 0:11:53.000
<v Speaker 8>the range by about fifty miles. That's just one of

0:11:53.080 --> 0:11:56.520
<v Speaker 8>many engineering gains they made, which is the reason they

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<v Speaker 8>can field this vehicle at thirty thousand dollars as a

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<v Speaker 8>starting price, which is twenty thousand dollars below the average

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<v Speaker 8>price of a new Current America today.

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<v Speaker 2>We spent about forty five minutes on the phone with

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<v Speaker 2>Doug Field, which was really interesting exercise.

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<v Speaker 3>There is a pathway here, right.

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<v Speaker 2>It starts twenty twenty seven with a pickup truck and

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<v Speaker 2>they go basically from skunk works to reintegrating back into

0:12:20.240 --> 0:12:24.800
<v Speaker 2>the might of Ford with distant maybe distant Keith ambitions

0:12:24.880 --> 0:12:27.959
<v Speaker 2>on L three systems. What's the sort of timeline from

0:12:28.000 --> 0:12:30.920
<v Speaker 2>here of this UEV platform please.

0:12:31.280 --> 0:12:34.240
<v Speaker 8>Yeah, not exactly that far distant. They're going to come

0:12:34.280 --> 0:12:38.280
<v Speaker 8>with the Eyes off the Road Level three semi autonomy

0:12:38.720 --> 0:12:41.240
<v Speaker 8>in twenty twenty eight, so a year after they launched

0:12:41.280 --> 0:12:46.320
<v Speaker 8>this vehicle, they'll offer buyers the option of getting this

0:12:46.800 --> 0:12:50.400
<v Speaker 8>semi autonomous size off the road, hands off the wheel feature.

0:12:50.840 --> 0:12:53.360
<v Speaker 8>So their point is they can put a feature like

0:12:53.400 --> 0:12:57.720
<v Speaker 8>that on an inexpensive car in the thirty thousands, which

0:12:57.800 --> 0:13:01.640
<v Speaker 8>is unusual. Normally those sorts of bands technology features show

0:13:01.720 --> 0:13:04.640
<v Speaker 8>up first on very high end luxury cars closer to

0:13:04.679 --> 0:13:05.280
<v Speaker 8>six figures.

0:13:05.320 --> 0:13:05.440
<v Speaker 6>Right.

0:13:07.080 --> 0:13:10.120
<v Speaker 2>The approach from Ford thus far has been to electrify

0:13:10.240 --> 0:13:13.560
<v Speaker 2>the big winners, thinking mocky, thinking f one fifty lightning

0:13:13.600 --> 0:13:17.240
<v Speaker 2>that that's gone now, right, and the focus is that's

0:13:17.280 --> 0:13:19.640
<v Speaker 2>gone right, and the focus is China. So put that

0:13:20.040 --> 0:13:23.560
<v Speaker 2>context out there for us. Why this approach ground up,

0:13:24.000 --> 0:13:27.280
<v Speaker 2>starting from fresh is the right way to counter that?

0:13:27.320 --> 0:13:30.720
<v Speaker 2>The cost basis of a Chinese EV company.

0:13:30.880 --> 0:13:33.520
<v Speaker 8>Right, So the advantage the Chinese have is in price.

0:13:34.160 --> 0:13:37.079
<v Speaker 8>I mean, there's a Chinese EV in China for ten

0:13:37.120 --> 0:13:40.400
<v Speaker 8>thousand dollars. Not likely that would come here. But they

0:13:40.440 --> 0:13:42.800
<v Speaker 8>have a big price advantage even if you make a

0:13:42.840 --> 0:13:44.920
<v Speaker 8>car ready for the US market. But they also have

0:13:44.960 --> 0:13:48.720
<v Speaker 8>a technology advantage. They have, you know, cars that are

0:13:48.800 --> 0:13:53.240
<v Speaker 8>essentially an extension of your of your smartphone smart cars,

0:13:53.559 --> 0:13:56.120
<v Speaker 8>So you need to compete against them both on price

0:13:56.160 --> 0:13:59.160
<v Speaker 8>and technology. That's what Ford says it's doing with this

0:13:59.720 --> 0:14:02.840
<v Speaker 8>because of the approach they've taken. It's not just an

0:14:02.880 --> 0:14:05.880
<v Speaker 8>affordable vehicle, they say, but it's a desirable vehicle with

0:14:05.960 --> 0:14:07.120
<v Speaker 8>lots of good features.

0:14:08.559 --> 0:14:11.079
<v Speaker 2>Bloombers Keith Norton, who again has led the charge on

0:14:11.200 --> 0:14:13.679
<v Speaker 2>covering this industry and this company for a long time,

0:14:13.800 --> 0:14:14.520
<v Speaker 2>appreciate it.

0:14:14.720 --> 0:14:15.559
<v Speaker 3>Let's talk about Apple.

0:14:15.640 --> 0:14:19.240
<v Speaker 2>It's touting an in person experience event in New York, Shanghai,

0:14:19.280 --> 0:14:22.560
<v Speaker 2>and London for a March fourth product launch, suggesting a

0:14:22.680 --> 0:14:26.400
<v Speaker 2>lower key showcase than often held at its Cupatino campus.

0:14:26.440 --> 0:14:29.520
<v Speaker 2>Let's get out to Bloomberg's Consumer Tech and Apple Managing

0:14:29.600 --> 0:14:32.320
<v Speaker 2>editor Mark Gumman. There's the event and how they'll do

0:14:32.400 --> 0:14:36.200
<v Speaker 2>it right. Different to the kind of keynote style format

0:14:36.520 --> 0:14:39.960
<v Speaker 2>in Coupatino, but it's harder the products. And I think

0:14:39.960 --> 0:14:42.320
<v Speaker 2>you were on very recently kind of telling us what

0:14:42.360 --> 0:14:43.480
<v Speaker 2>we should expect from this.

0:14:44.480 --> 0:14:46.400
<v Speaker 9>Yeah, there's a lot in the pipeline for the first

0:14:46.400 --> 0:14:48.920
<v Speaker 9>half of this year. I don't think that everything is

0:14:48.920 --> 0:14:50.800
<v Speaker 9>going to show up at this event. There's just too

0:14:50.840 --> 0:14:53.240
<v Speaker 9>much stuff for you to have in one showcase. But

0:14:53.280 --> 0:14:55.400
<v Speaker 9>if you think about why would you need an event.

0:14:55.480 --> 0:14:58.120
<v Speaker 9>Why would you need an in person experience in three

0:14:58.160 --> 0:15:02.960
<v Speaker 9>different places London, Shanghai, New York. Right these are as

0:15:03.000 --> 0:15:06.040
<v Speaker 9>big of multi metropolitan areas in the world as you

0:15:06.080 --> 0:15:10.000
<v Speaker 9>can get. It means they're launching something pretty significant. So

0:15:10.360 --> 0:15:13.920
<v Speaker 9>my eyes are on this new low cost MacBook. It'll

0:15:13.920 --> 0:15:16.640
<v Speaker 9>be in the seven hundred to nine hundred dollars range.

0:15:16.920 --> 0:15:19.880
<v Speaker 9>It will be their first MacBook powered by an iPhone chip.

0:15:20.200 --> 0:15:23.040
<v Speaker 9>It'll be slightly smaller than the MacBook Air, but the

0:15:23.080 --> 0:15:25.880
<v Speaker 9>price point is a really big deal. This has the

0:15:25.880 --> 0:15:30.320
<v Speaker 9>potential to really overshadow Chromebooks and some of the PCs

0:15:30.320 --> 0:15:32.320
<v Speaker 9>we're seeing out of the Windows market right now.

0:15:32.360 --> 0:15:33.560
<v Speaker 3>So this is a really big deal.

0:15:34.520 --> 0:15:36.520
<v Speaker 9>The other new things that are in the pipeline for

0:15:36.560 --> 0:15:39.040
<v Speaker 9>the first half of this year new MacBook pros, new

0:15:39.040 --> 0:15:44.120
<v Speaker 9>MacBook Airs, the iPhone seventeen e, as well as new

0:15:44.200 --> 0:15:47.400
<v Speaker 9>iPad entry level and iPad Air models. I would think

0:15:47.400 --> 0:15:50.760
<v Speaker 9>that we would at least get the seventeen e by

0:15:50.800 --> 0:15:51.920
<v Speaker 9>this event at the latest.

0:15:52.760 --> 0:15:54.440
<v Speaker 2>I want to say something up for our audience because

0:15:54.440 --> 0:15:56.040
<v Speaker 2>you put me on the spot the other day. I'm

0:15:56.080 --> 0:15:58.960
<v Speaker 2>running a MacBook Pro with M four that's my work

0:15:59.000 --> 0:16:02.320
<v Speaker 2>one at home I've got a twenty twenty macair running

0:16:02.320 --> 0:16:04.440
<v Speaker 2>in one, and you quite rightly pointed out I should

0:16:04.480 --> 0:16:08.000
<v Speaker 2>upgrade when they hold these events. How quickly do the

0:16:08.000 --> 0:16:09.760
<v Speaker 2>new products hit the shelves quickly?

0:16:11.560 --> 0:16:14.160
<v Speaker 9>When it's a spec bump, they're rolling out within a

0:16:14.160 --> 0:16:17.280
<v Speaker 9>few days. The longest delay is usually about a week,

0:16:17.360 --> 0:16:20.800
<v Speaker 9>two weeks maybe maximum, but it's usually pretty quick.

0:16:22.200 --> 0:16:24.360
<v Speaker 2>Flamous Mark German, who's been on top of the reporting

0:16:24.360 --> 0:16:26.840
<v Speaker 2>on this well in advance, thank you very much. Coming up,

0:16:27.080 --> 0:16:29.720
<v Speaker 2>we're going to discuss just how big a market the

0:16:29.840 --> 0:16:31.560
<v Speaker 2>physical AI space can be.

0:16:31.800 --> 0:16:35.280
<v Speaker 3>That's where Na over from Berkley's. That's next. This has

0:16:35.280 --> 0:16:35.760
<v Speaker 3>been bog.

0:16:35.720 --> 0:16:47.360
<v Speaker 2>Tech, a report from Berkley's projects that by twenty thirty five,

0:16:47.560 --> 0:16:51.240
<v Speaker 2>physical AI could be a trillion dollar market thanks to

0:16:51.320 --> 0:16:55.040
<v Speaker 2>advances in brains, brawn and batteries. So where are the

0:16:55.040 --> 0:16:58.360
<v Speaker 2>investment opportunities along that value chains? I need to tuttle

0:16:58.400 --> 0:17:01.080
<v Speaker 2>over Barkley's head of thematic if I see see research,

0:17:01.120 --> 0:17:03.600
<v Speaker 2>and the author of that report joins us now in

0:17:03.640 --> 0:17:05.920
<v Speaker 2>many ways, so I need to say it's an update.

0:17:06.160 --> 0:17:09.199
<v Speaker 2>You know you're keeping the research alive. So we have

0:17:09.320 --> 0:17:13.520
<v Speaker 2>the one trillion addressable market twenty thirty five. But digging

0:17:13.560 --> 0:17:17.600
<v Speaker 2>down into the notes, actually, autonomous driving is a really

0:17:17.600 --> 0:17:18.520
<v Speaker 2>big part of this for you.

0:17:20.200 --> 0:17:20.680
<v Speaker 10>That's right.

0:17:20.840 --> 0:17:24.440
<v Speaker 11>Our latest research shows that physical AI could really become

0:17:24.440 --> 0:17:27.840
<v Speaker 11>a trillion dollar market by twenty thirty five. That's ten

0:17:27.920 --> 0:17:31.119
<v Speaker 11>times higher than where the market is currently valued at.

0:17:31.520 --> 0:17:36.160
<v Speaker 11>And that trillion dollar estimate spans four key robotics categories,

0:17:36.400 --> 0:17:41.440
<v Speaker 11>autonomous vehicles, humanoid robots, advanced automation, and drums.

0:17:41.800 --> 0:17:42.720
<v Speaker 10>And Look, while I have.

0:17:42.960 --> 0:17:45.560
<v Speaker 11>Really strong conviction that the late twenty twenties and the

0:17:45.560 --> 0:17:48.359
<v Speaker 11>early twenty thirties will be the decade of the robot

0:17:48.720 --> 0:17:51.800
<v Speaker 11>I also think that growth and adoption.

0:17:51.520 --> 0:17:54.200
<v Speaker 10>Will likely come in stages rather than all at once.

0:17:55.040 --> 0:17:58.439
<v Speaker 11>I can see how autonomous vikos could lead the trend

0:17:58.440 --> 0:18:00.320
<v Speaker 11>and said the stage, And in fact, nearly half of

0:18:00.359 --> 0:18:04.480
<v Speaker 11>that estimate of the market growth comes from autonomous vehicles,

0:18:04.840 --> 0:18:07.240
<v Speaker 11>or in dollar times, that's about five hundred billion dollars

0:18:07.400 --> 0:18:10.600
<v Speaker 11>by twenty thirty five. I think, also intuitively this makes

0:18:10.640 --> 0:18:14.000
<v Speaker 11>a lot of sense because autonomous vehicles clearly have a

0:18:14.040 --> 0:18:14.600
<v Speaker 11>head start.

0:18:15.160 --> 0:18:17.840
<v Speaker 10>The technology has been around for nearly a decade.

0:18:17.920 --> 0:18:21.200
<v Speaker 11>Now, the production process is there, it can leverage an

0:18:21.200 --> 0:18:25.680
<v Speaker 11>existing automotive supply chain, and I think more importantly, the

0:18:26.000 --> 0:18:29.000
<v Speaker 11>AI models needed for autonomous vehicles can work with a

0:18:29.119 --> 0:18:33.440
<v Speaker 11>much bigger real world driving data set that's collected from

0:18:33.480 --> 0:18:36.040
<v Speaker 11>millions of eCos out there, and that's a very different

0:18:36.080 --> 0:18:39.400
<v Speaker 11>story if you're compared to where humanoid robots are at

0:18:39.400 --> 0:18:39.800
<v Speaker 11>the moment.

0:18:41.359 --> 0:18:43.760
<v Speaker 2>So if you follow the arc of what happened with

0:18:43.880 --> 0:18:48.600
<v Speaker 2>autonomous driving, what needs to happen for humanoid robots for

0:18:48.720 --> 0:18:52.439
<v Speaker 2>them to make a meaningful contribution to your one trillion

0:18:52.480 --> 0:18:55.640
<v Speaker 2>dollar forecast for addressable market by twenty thirty five.

0:18:57.280 --> 0:19:00.520
<v Speaker 11>I think the number one challenge that humanoid it's a

0:19:00.760 --> 0:19:01.560
<v Speaker 11>phase right.

0:19:01.400 --> 0:19:03.680
<v Speaker 10>Now is the lack of physical AI data.

0:19:03.760 --> 0:19:06.640
<v Speaker 11>And that's because when you think about humanoid robots, they

0:19:06.680 --> 0:19:09.200
<v Speaker 11>really bridge the gap between the cognitive.

0:19:08.800 --> 0:19:10.879
<v Speaker 10>The digital, and the physical world.

0:19:10.920 --> 0:19:13.919
<v Speaker 11>And in the physical world, the laws of mechanics and

0:19:13.960 --> 0:19:18.600
<v Speaker 11>physics apply. A humanoid robot needs precise instructions if it's

0:19:18.920 --> 0:19:21.919
<v Speaker 11>going to function and perform properly in an unstructured world

0:19:21.920 --> 0:19:24.760
<v Speaker 11>that is made for humans. Take a simple example such

0:19:24.800 --> 0:19:27.920
<v Speaker 11>as lifting a box. This is a very simple task

0:19:28.000 --> 0:19:32.159
<v Speaker 11>for us humans. We have inbuilt dexterity, we have inbuilt intelligence.

0:19:32.200 --> 0:19:34.240
<v Speaker 11>We know exactly what we have to do. But a

0:19:34.320 --> 0:19:37.920
<v Speaker 11>humanoid robot needs precise instructions. It needs to know exactly

0:19:37.920 --> 0:19:41.080
<v Speaker 11>how much force to apply, where to apply that force,

0:19:41.400 --> 0:19:45.119
<v Speaker 11>and that simple example can get really tricky if something changes,

0:19:45.280 --> 0:19:48.600
<v Speaker 11>For example, the box is actually heavier than expected, if

0:19:48.640 --> 0:19:51.200
<v Speaker 11>the surface is slippery, that means that the robot needs

0:19:51.200 --> 0:19:52.480
<v Speaker 11>a new set of instructions.

0:19:52.560 --> 0:19:55.720
<v Speaker 10>And the challenge is that there is no dictionary out there.

0:19:55.760 --> 0:19:58.200
<v Speaker 10>There is no single database that can.

0:19:58.040 --> 0:20:00.760
<v Speaker 11>Tell us, look for a fifty pounds box, you need

0:20:00.800 --> 0:20:03.760
<v Speaker 11>this amount of energy, this amount of force. All that

0:20:03.800 --> 0:20:05.840
<v Speaker 11>needs to be built from scratch in order for the

0:20:05.880 --> 0:20:08.879
<v Speaker 11>technology to scale and to become more more useful in

0:20:08.960 --> 0:20:09.960
<v Speaker 11>the real world.

0:20:10.800 --> 0:20:14.400
<v Speaker 2>In both cases autonomous driving and humanoid robotics, and actually

0:20:14.520 --> 0:20:17.119
<v Speaker 2>you could extend that to autonomous drone technology as well.

0:20:17.440 --> 0:20:20.680
<v Speaker 2>There is a great emphasis on China, how far aheaded

0:20:20.800 --> 0:20:25.000
<v Speaker 2>is in commercializing the technology, but also supply chain dependency.

0:20:25.320 --> 0:20:29.240
<v Speaker 2>A lot of that supply chain has historically originated from China.

0:20:29.480 --> 0:20:30.960
<v Speaker 3>How does that show up in your research?

0:20:32.880 --> 0:20:35.120
<v Speaker 10>So it's clear that China leads.

0:20:35.440 --> 0:20:38.960
<v Speaker 11>I think it deploys robots on a completely different scale.

0:20:39.200 --> 0:20:42.200
<v Speaker 11>For example, in twenty twenty five, we estimate that nearly

0:20:42.280 --> 0:20:46.200
<v Speaker 11>fifteen thousand humanoid robots were deployed worldwide.

0:20:46.440 --> 0:20:49.040
<v Speaker 10>Eighty five percent of those were installed in China. You

0:20:49.080 --> 0:20:51.080
<v Speaker 10>get a similar story if you look at other types

0:20:51.080 --> 0:20:53.960
<v Speaker 10>of robotics technologies like industrial automation.

0:20:54.160 --> 0:20:56.480
<v Speaker 11>There we're talking about fifty to sixty percent of the

0:20:56.600 --> 0:20:59.960
<v Speaker 11>units are installed in China. If you compare these figures

0:21:00.040 --> 0:21:02.160
<v Speaker 11>to what's happening in the US, the numbers.

0:21:01.800 --> 0:21:02.680
<v Speaker 10>Look very different.

0:21:03.000 --> 0:21:06.399
<v Speaker 11>Low teams for humanoid robots and even single digits for

0:21:07.600 --> 0:21:09.360
<v Speaker 11>industrial for industrial.

0:21:09.000 --> 0:21:11.000
<v Speaker 10>Robots, so the scale is very different.

0:21:11.440 --> 0:21:14.240
<v Speaker 11>So China has the advantage in terms of technology, also

0:21:14.440 --> 0:21:16.160
<v Speaker 11>access to raw materials.

0:21:16.160 --> 0:21:18.600
<v Speaker 10>Take for example, critical minerals, rare earths.

0:21:18.760 --> 0:21:21.879
<v Speaker 11>You need a lot of those components to build some

0:21:21.960 --> 0:21:26.760
<v Speaker 11>of these very very specific physical components that go into

0:21:26.800 --> 0:21:29.399
<v Speaker 11>a robot. So there are different chunks of the supply

0:21:29.520 --> 0:21:34.760
<v Speaker 11>chain where China can really can really kick in. So

0:21:34.800 --> 0:21:38.119
<v Speaker 11>all that comes together. But having said that, it's the

0:21:38.160 --> 0:21:40.720
<v Speaker 11>early stages. I think we are just scratching the surface

0:21:40.720 --> 0:21:42.879
<v Speaker 11>in terms of what physical AI can do, and I

0:21:42.920 --> 0:21:45.560
<v Speaker 11>see lots of potential for that adoption to accelerate in

0:21:45.640 --> 0:21:46.919
<v Speaker 11>other parts of the world.

0:21:47.080 --> 0:21:49.440
<v Speaker 10>Starting with the US and even potentially in Europe.

0:21:49.440 --> 0:21:52.080
<v Speaker 3>In a couple of years signs so needs to thutter

0:21:52.200 --> 0:21:53.040
<v Speaker 3>over of barkleys.

0:21:53.080 --> 0:21:54.879
<v Speaker 2>It's great to have you back on Bloomberg Tech with

0:21:54.920 --> 0:21:56.080
<v Speaker 2>your updated research.

0:21:56.160 --> 0:21:56.560
<v Speaker 3>Thank you.

0:21:56.840 --> 0:22:00.280
<v Speaker 2>So news crossing the Bloomberg terminal, Palenteer says it has

0:22:00.320 --> 0:22:04.280
<v Speaker 2>moved its headquarters to Miami, Florida from Denver.

0:22:04.359 --> 0:22:06.080
<v Speaker 3>They made the announcement.

0:22:05.720 --> 0:22:09.720
<v Speaker 2>Via a pretty straightforward and simple post on x the

0:22:09.760 --> 0:22:12.959
<v Speaker 2>social platform. The shares kind of haven't really moved from

0:22:12.960 --> 0:22:15.440
<v Speaker 2>where they were trading anyway, but an interesting story will

0:22:15.440 --> 0:22:18.639
<v Speaker 2>continue to track now. Coming up on the show, bitcoin

0:22:18.800 --> 0:22:21.280
<v Speaker 2>having a tough time after the long weekend. We're going

0:22:21.359 --> 0:22:25.160
<v Speaker 2>to scuss what's ahead for cryptocurrencies. A lot of focus

0:22:25.280 --> 0:22:27.480
<v Speaker 2>on geopolitical risk right now.

0:22:27.640 --> 0:22:29.800
<v Speaker 3>And of course, while it was a US holiday.

0:22:29.440 --> 0:22:32.680
<v Speaker 2>On Monday, bitcoin trading twenty four to seven around the world.

0:22:32.640 --> 0:22:34.840
<v Speaker 3>Do you see since Friday? That's what it looked like.

0:22:34.920 --> 0:22:37.560
<v Speaker 2>Market's actually not as anxious as they were when we

0:22:37.600 --> 0:22:50.320
<v Speaker 2>woke up. It's halftime. This is Bloomberg Tech. Welcome back

0:22:50.359 --> 0:22:51.200
<v Speaker 2>to Bloomberg Tech if.

0:22:51.160 --> 0:22:51.840
<v Speaker 3>You're just joining us.

0:22:51.920 --> 0:22:54.639
<v Speaker 2>Volatility has gripped Wall Street, particularly when it comes to

0:22:55.080 --> 0:22:57.680
<v Speaker 2>conversation around the AI trade. Right now, then, as that

0:22:57.720 --> 0:22:59.600
<v Speaker 2>one hundred is actually just a little bit softer three

0:22:59.640 --> 0:23:03.960
<v Speaker 2>tenths of percent. The Philadelphia Semiconductor Index or SOCKS was

0:23:04.000 --> 0:23:06.159
<v Speaker 2>down two percent. We're now off by two tens of

0:23:06.160 --> 0:23:09.040
<v Speaker 2>one percent. Again, we're seeing volatility in video one of

0:23:09.040 --> 0:23:12.320
<v Speaker 2>those names participating in it. There are some news stories

0:23:12.359 --> 0:23:14.080
<v Speaker 2>that want to pick out while we get the opportunity.

0:23:14.119 --> 0:23:18.760
<v Speaker 2>Gemini Space Station. The cryptoic Stange, founded by the Vinkel

0:23:19.359 --> 0:23:24.160
<v Speaker 2>Twins and iPod a few months ago, is down fourteen

0:23:24.200 --> 0:23:26.800
<v Speaker 2>percent basically in the months that followed the IPO.

0:23:27.119 --> 0:23:28.800
<v Speaker 3>A lot of the C suite has left.

0:23:28.960 --> 0:23:32.040
<v Speaker 2>They confirmed this morning the CFO, chief legal officer, chief

0:23:32.040 --> 0:23:35.680
<v Speaker 2>operating officer all left. That's putting volatility in that name.

0:23:35.800 --> 0:23:40.719
<v Speaker 2>In the crypto adjacent space and generally speaking, cryptocurrencies are

0:23:40.720 --> 0:23:44.120
<v Speaker 2>struggling to find clear direction. After a weekend rally fizzled,

0:23:44.480 --> 0:23:48.040
<v Speaker 2>e raising a small bounce that briefly took Bitcoin close

0:23:48.080 --> 0:23:51.000
<v Speaker 2>to seventy one thousand US dollars per token on Saturday.

0:23:51.280 --> 0:23:53.840
<v Speaker 2>It has been a tough run for crypto, especially with

0:23:53.920 --> 0:23:57.960
<v Speaker 2>Bitcoin posting four straight weeks of losses. There is one

0:23:58.000 --> 0:24:00.040
<v Speaker 2>person who I rely on to help with this, and

0:24:00.119 --> 0:24:03.800
<v Speaker 2>that is Bloomberg's cross at reporter Isabelle Lee. So most

0:24:03.840 --> 0:24:07.000
<v Speaker 2>of America was on a holiday on Monday. In the

0:24:07.080 --> 0:24:10.120
<v Speaker 2>United States, Crypto is a twenty four to seven thing,

0:24:10.880 --> 0:24:13.320
<v Speaker 2>and it's a global thing. But it was interesting to

0:24:13.400 --> 0:24:16.040
<v Speaker 2>kind of track from Friday through to this morning where

0:24:16.240 --> 0:24:19.720
<v Speaker 2>you net out sixty seven thousand US dollars. Partoken and

0:24:19.800 --> 0:24:22.119
<v Speaker 2>the stories on the Bloomberg are about geopolitics.

0:24:22.640 --> 0:24:25.360
<v Speaker 12>Bitcoin never sleeps, but over the weekend and during holidays.

0:24:25.440 --> 0:24:28.760
<v Speaker 12>We must recognize that liquidity is thin. But to your point,

0:24:29.000 --> 0:24:31.040
<v Speaker 12>we've seen four s rate weeks of losses and there

0:24:31.080 --> 0:24:32.520
<v Speaker 12>are just a lot of things going on. We have

0:24:32.560 --> 0:24:35.600
<v Speaker 12>renewed geopolitical tensions when it comes to Iran. FED rate

0:24:35.640 --> 0:24:38.879
<v Speaker 12>cuts are back end focused, especially after last week's inflation report.

0:24:39.119 --> 0:24:41.560
<v Speaker 12>We also have AI concerns on my inbox, as I'm

0:24:41.560 --> 0:24:44.359
<v Speaker 12>sure yours is. It's just full of AI concerns about

0:24:44.400 --> 0:24:47.639
<v Speaker 12>whether this selloff we're seeing will spill over the tech sector.

0:24:47.720 --> 0:24:49.680
<v Speaker 12>So all of that is causing Bitcoin, which is now

0:24:49.720 --> 0:24:52.440
<v Speaker 12>really a risk asset, moving a lot in step with NESDAC.

0:24:52.680 --> 0:24:55.120
<v Speaker 12>It's really edging lowers, so that's what you're seeing. It's

0:24:55.119 --> 0:24:58.600
<v Speaker 12>interesting because we still have the original bitcoin proponents saying

0:24:58.600 --> 0:25:00.640
<v Speaker 12>that this is a haven. This is what you buy

0:25:00.640 --> 0:25:03.520
<v Speaker 12>and comes when it comes to when there's geopolitical tension,

0:25:03.720 --> 0:25:06.399
<v Speaker 12>inflation fears. But for now it's definitely behaving like a

0:25:06.440 --> 0:25:06.960
<v Speaker 12>risk acid.

0:25:07.640 --> 0:25:11.000
<v Speaker 2>Bloomberg's Isabelle Lee with the crypto summary, thank you very much.

0:25:11.280 --> 0:25:15.119
<v Speaker 2>Latest thirteen F filings from Soros Fund Management has revealed

0:25:15.119 --> 0:25:18.400
<v Speaker 2>that it's doubled its steak in Microsoft, jumping from about

0:25:18.400 --> 0:25:20.679
<v Speaker 2>one hundred and two thousand shares to two hundred and

0:25:20.680 --> 0:25:23.480
<v Speaker 2>sixty three thousand shares. Here with the latest of Bloomberg

0:25:23.520 --> 0:25:26.199
<v Speaker 2>Hedge Fun reporter Hemma Palmer, what do we need to

0:25:26.200 --> 0:25:27.160
<v Speaker 2>know here about Soros?

0:25:27.520 --> 0:25:30.200
<v Speaker 13>Right, so when we look at his move here doubling

0:25:30.200 --> 0:25:32.480
<v Speaker 13>his steak in Microsoft, this is a stock that, as

0:25:32.480 --> 0:25:34.640
<v Speaker 13>we now have seen with the beginning of the year,

0:25:34.640 --> 0:25:38.560
<v Speaker 13>has become incredibly volatile, down twenty three percent since the

0:25:38.680 --> 0:25:41.639
<v Speaker 13>end of the third quarter. So you know, these thirteen

0:25:41.720 --> 0:25:45.000
<v Speaker 13>f's today are actually quite insightful because we're seeing positioning

0:25:45.280 --> 0:25:48.040
<v Speaker 13>ahead of what's been a chaotic start to the year.

0:25:48.440 --> 0:25:51.119
<v Speaker 13>So as we can see who made the right best,

0:25:51.119 --> 0:25:54.200
<v Speaker 13>who is probably in pain, the stock's not doing too well.

0:25:54.720 --> 0:25:59.560
<v Speaker 13>Soros also added to Apple, Nvidia, and Amazon, and there's

0:25:59.600 --> 0:26:02.280
<v Speaker 13>been pain interesting board it has.

0:26:02.400 --> 0:26:05.240
<v Speaker 2>It's interesting the thirty and F exercise. Either you start

0:26:05.240 --> 0:26:07.480
<v Speaker 2>with the hedge fund or the fund, or if you're me,

0:26:07.560 --> 0:26:09.359
<v Speaker 2>you kind of look at the change of positions of

0:26:09.400 --> 0:26:09.919
<v Speaker 2>the names.

0:26:10.320 --> 0:26:13.760
<v Speaker 3>University of Texas came up. Why yeah.

0:26:13.800 --> 0:26:16.320
<v Speaker 13>So on the flip side, they actually trimmed their Microsoft

0:26:16.400 --> 0:26:20.399
<v Speaker 13>steak and their Amazon position. They ramped up their Apple holding,

0:26:20.440 --> 0:26:24.040
<v Speaker 13>which has been less painful for them as we look

0:26:24.080 --> 0:26:27.000
<v Speaker 13>at through the end of September. When we look at

0:26:27.000 --> 0:26:30.359
<v Speaker 13>these filings through till now, they do have a large

0:26:30.400 --> 0:26:33.880
<v Speaker 13>portfolio over three hundred positions, so we saw some good

0:26:33.920 --> 0:26:37.040
<v Speaker 13>rotation in that. But the interesting rove there was ramping

0:26:37.119 --> 0:26:39.000
<v Speaker 13>up Apple and also trimming.

0:26:38.720 --> 0:26:42.520
<v Speaker 2>Microsoft, Bloomberg, Semmapana across all the thirty and f's.

0:26:42.520 --> 0:26:44.240
<v Speaker 3>Thank you so much. All right, a lot more to

0:26:44.240 --> 0:26:44.840
<v Speaker 3>come on the show.

0:26:44.960 --> 0:26:49.000
<v Speaker 2>Startup Mesh is out to build the quote largest optical

0:26:49.040 --> 0:26:54.119
<v Speaker 2>manufacturing footprint outside of Asia, lasers, optics, everything AI. That

0:26:54.200 --> 0:27:09.119
<v Speaker 2>conversation's next with a funding raise. This is Bloomberg Tech, Elon, Musk,

0:27:09.240 --> 0:27:13.440
<v Speaker 2>SpaceX and Xai recently merged are competing in a secret

0:27:13.520 --> 0:27:18.919
<v Speaker 2>Pentagon contest to develop voice controlled autonomous drone swarming technology.

0:27:19.160 --> 0:27:22.359
<v Speaker 2>According to sources, it's a one hundred million dollar prize

0:27:22.480 --> 0:27:25.280
<v Speaker 2>that only a handful of companies were selecteds to take

0:27:25.320 --> 0:27:28.959
<v Speaker 2>part in. Here with the story, bloombergs Katrina Manson, this

0:27:29.200 --> 0:27:32.360
<v Speaker 2>was a fascinating read. It's a kind of new domain

0:27:32.520 --> 0:27:35.760
<v Speaker 2>for SPACEXXAI. It's a contest. What do we need to

0:27:35.800 --> 0:27:36.120
<v Speaker 2>know here?

0:27:37.280 --> 0:27:39.800
<v Speaker 14>This is really the frontier of the future of war.

0:27:39.880 --> 0:27:43.439
<v Speaker 14>This is everything that folks like Stop Killer Robots and

0:27:43.560 --> 0:27:46.680
<v Speaker 14>others have been warning about. This is the Pentagon trying

0:27:46.760 --> 0:27:50.920
<v Speaker 14>to experiment with completely new tech that has so far

0:27:51.080 --> 0:27:54.320
<v Speaker 14>been failing its experimental and this is a moment really

0:27:54.320 --> 0:27:57.440
<v Speaker 14>where the AI companies are coming to the fore quite unexpectedly.

0:27:57.840 --> 0:28:00.320
<v Speaker 14>Elon Musk is the very same person who's said that

0:28:00.560 --> 0:28:02.560
<v Speaker 14>he would have nothing to do with new tools for

0:28:02.640 --> 0:28:05.520
<v Speaker 14>killing back in twenty fifteen when he signed onto an

0:28:05.560 --> 0:28:10.879
<v Speaker 14>open letter from AI researchers and roboticists saying we do

0:28:10.920 --> 0:28:13.920
<v Speaker 14>not want autonomous weapons. And now this is the Appentagon

0:28:13.960 --> 0:28:16.880
<v Speaker 14>trying to create autonomous weapons. These are weapons that can

0:28:16.960 --> 0:28:21.480
<v Speaker 14>select and engage targets of their own accord. The contest

0:28:21.520 --> 0:28:24.040
<v Speaker 14>is not explicitly saying they will be doing that, but

0:28:24.080 --> 0:28:26.840
<v Speaker 14>they are saying that drones will be moving around and

0:28:26.880 --> 0:28:31.720
<v Speaker 14>taking commands from voice and turning those into digital instructions.

0:28:32.760 --> 0:28:35.840
<v Speaker 2>I don't know that the price money is necessarily that.

0:28:35.920 --> 0:28:39.440
<v Speaker 2>The main headline for SpaceX right. What you do really

0:28:39.480 --> 0:28:42.640
<v Speaker 2>well in your reporting is explain where the technology's at

0:28:42.880 --> 0:28:45.760
<v Speaker 2>and where you know where various institutions want it to

0:28:45.760 --> 0:28:48.920
<v Speaker 2>get to. So we have drones, but it's this swarming

0:28:49.160 --> 0:28:53.280
<v Speaker 2>idea in the I guess defense use case what needs

0:28:53.320 --> 0:28:54.040
<v Speaker 2>to be cracked.

0:28:54.520 --> 0:28:56.480
<v Speaker 14>I think there are four stages. First, as you say

0:28:56.480 --> 0:28:59.440
<v Speaker 14>there are drones. Everyone's become familiar with drones because of

0:28:59.480 --> 0:29:02.800
<v Speaker 14>the Russian invasion of Ukraine, and Elon Musk himself said

0:29:02.800 --> 0:29:05.760
<v Speaker 14>in twenty twenty four that if there is a major

0:29:05.800 --> 0:29:07.880
<v Speaker 14>power war, it's going to be a drone war. So

0:29:07.960 --> 0:29:10.000
<v Speaker 14>everyone is very focused on what that might look like.

0:29:10.120 --> 0:29:12.760
<v Speaker 14>In the case of a US traina contest over Taiwan,

0:29:13.440 --> 0:29:17.360
<v Speaker 14>people have flown multiple drones together. That's not the same

0:29:17.400 --> 0:29:19.520
<v Speaker 14>as a swarm. A swarm really is where the drones

0:29:19.600 --> 0:29:22.680
<v Speaker 14>talk to each other, they interact with each other, and

0:29:22.800 --> 0:29:26.680
<v Speaker 14>ultimately potentially carry a payload or a weapon and can

0:29:26.800 --> 0:29:30.560
<v Speaker 14>drop that weapon on a target. Weaving in ai to

0:29:30.680 --> 0:29:34.560
<v Speaker 14>do that for targeting, automatic targeting recognition, and in this

0:29:34.720 --> 0:29:38.200
<v Speaker 14>case to take a command from someone giving a voice

0:29:38.200 --> 0:29:41.120
<v Speaker 14>instruction and turn that into a movement or an action

0:29:41.840 --> 0:29:44.160
<v Speaker 14>is relatively uncharted territory.

0:29:45.040 --> 0:29:48.160
<v Speaker 2>I should say that SpaceX and XAI did not respond

0:29:48.280 --> 0:29:51.000
<v Speaker 2>to our request for comment, which is pretty normal procedure

0:29:51.040 --> 0:29:51.400
<v Speaker 2>for them.

0:29:51.920 --> 0:29:54.320
<v Speaker 3>What they are doing is hiring.

0:29:53.920 --> 0:29:57.400
<v Speaker 2>Some interesting roles bikostally, but you know in the classic

0:29:57.480 --> 0:29:59.800
<v Speaker 2>talent pools of Silicon Valley, what areas.

0:30:00.600 --> 0:30:02.560
<v Speaker 14>This is DC in the West Coast, and of course

0:30:02.560 --> 0:30:06.600
<v Speaker 14>SpaceX a long term defense contractor, but never an offensive

0:30:06.600 --> 0:30:09.600
<v Speaker 14>weapons nothing ever so explicit. And XAI, I mean, this

0:30:09.720 --> 0:30:12.280
<v Speaker 14>is grok, this is x We're all going to post

0:30:12.320 --> 0:30:15.840
<v Speaker 14>the story on afterwards. They are now hiring for people

0:30:15.960 --> 0:30:19.760
<v Speaker 14>with clearances and that's a real change. They're looking for

0:30:19.800 --> 0:30:23.400
<v Speaker 14>people with secret clearance and top secret clearance.

0:30:24.840 --> 0:30:28.160
<v Speaker 2>Bloomberg Katrina manson Top Reporting, Thank you very much. There

0:30:28.160 --> 0:30:30.120
<v Speaker 2>are so many other news headlines in the world of tech.

0:30:30.360 --> 0:30:33.320
<v Speaker 2>Time now for Talking Tech and first Start and Propics.

0:30:33.360 --> 0:30:36.600
<v Speaker 2>Talks to extend a contract with the Pentagon are being

0:30:36.640 --> 0:30:40.160
<v Speaker 2>held up over additional protections. The company wants to put

0:30:40.200 --> 0:30:43.280
<v Speaker 2>on its clawed tool and Propic wants to put guardrails

0:30:43.320 --> 0:30:46.040
<v Speaker 2>in place to stop Claude from being used for mass

0:30:46.080 --> 0:30:49.760
<v Speaker 2>surveillance of Americans, or to develop weapons that can be

0:30:49.760 --> 0:30:53.520
<v Speaker 2>deployed without a human involved. According to sources, Depentagon wants

0:30:53.520 --> 0:30:55.239
<v Speaker 2>to be able to use Claude as long as it's

0:30:55.320 --> 0:30:59.680
<v Speaker 2>deployment doesn't break the law. Plus five Capital has raised

0:30:59.680 --> 0:31:02.920
<v Speaker 2>more than ten billion dollars for its largest fund, Yet

0:31:02.960 --> 0:31:06.120
<v Speaker 2>the venture firm founded by Josh Kushner draw far more

0:31:06.160 --> 0:31:09.800
<v Speaker 2>demand than it could accept, turning away billions of dollars

0:31:10.000 --> 0:31:13.960
<v Speaker 2>from prospective investors. The interest underscores the success of several

0:31:14.240 --> 0:31:18.800
<v Speaker 2>of its portfolio companies, including open Ai, SpaceX, and Stripe,

0:31:18.880 --> 0:31:21.720
<v Speaker 2>and sticking with capital, the firm just back to startup

0:31:21.760 --> 0:31:25.960
<v Speaker 2>building optical transceivers that are crucial for data centers. The

0:31:26.000 --> 0:31:29.520
<v Speaker 2>startup is called Mesh Optical Technologies and was founded by

0:31:29.560 --> 0:31:32.640
<v Speaker 2>SpaceX alumni, and it's raised fifty million dollars led by

0:31:32.720 --> 0:31:36.880
<v Speaker 2>Thrive to scale manufacturing of the technology in the United States.

0:31:36.920 --> 0:31:40.880
<v Speaker 2>The company's co founder and CEO, Travis Preshiers, joins US,

0:31:40.920 --> 0:31:43.320
<v Speaker 2>Now this is such an interesting field.

0:31:43.640 --> 0:31:44.880
<v Speaker 3>It's one that Nvidia has.

0:31:44.800 --> 0:31:47.800
<v Speaker 2>Looked at the use of optic optics in GPU is

0:31:47.800 --> 0:31:48.840
<v Speaker 2>also OPU is.

0:31:48.800 --> 0:31:49.480
<v Speaker 3>Being looked at.

0:31:49.920 --> 0:31:53.280
<v Speaker 2>Let's start with what you're offering, the actual technology itself,

0:31:53.280 --> 0:31:54.520
<v Speaker 2>which we wrote about this morning.

0:31:55.480 --> 0:31:56.840
<v Speaker 5>Yeah, thanks for having me on the show.

0:31:56.880 --> 0:32:00.440
<v Speaker 15>And yeah, we're we just announced that our our company,

0:32:00.520 --> 0:32:03.920
<v Speaker 15>Mesh Optical, coming out of Stealth. Here we are standing

0:32:03.960 --> 0:32:07.400
<v Speaker 15>up high volume optical manufacturing of these optical interconnects that

0:32:07.440 --> 0:32:11.040
<v Speaker 15>are used for all GPU clusters. So anytime you hear

0:32:11.080 --> 0:32:13.840
<v Speaker 15>someone talking about a GPU cluster, there's four to five

0:32:13.920 --> 0:32:18.720
<v Speaker 15>of these optical transceivers for every one GPU. And so yeah,

0:32:18.760 --> 0:32:21.800
<v Speaker 15>we're excited to offer our first product as what we

0:32:21.840 --> 0:32:24.800
<v Speaker 15>call a linear pluggable optic and it's at like a

0:32:24.840 --> 0:32:28.719
<v Speaker 15>one point six terabit per second data rate, which is

0:32:28.760 --> 0:32:30.280
<v Speaker 15>like what the state of the art will be in

0:32:30.320 --> 0:32:32.800
<v Speaker 15>the coming years and all these GPU clusters.

0:32:33.720 --> 0:32:36.360
<v Speaker 2>Jere, you were at SpaceX for about five years. You're

0:32:36.400 --> 0:32:40.200
<v Speaker 2>the laser guy right working on the technology stack that

0:32:40.280 --> 0:32:45.160
<v Speaker 2>helps satellites communicate. Essentially your co founders also SpaceX alumni

0:32:45.280 --> 0:32:49.440
<v Speaker 2>in slightly different domains. But how is that transferable to

0:32:49.480 --> 0:32:53.880
<v Speaker 2>what you're doing here in the first instance with the transceivers.

0:32:54.560 --> 0:32:56.720
<v Speaker 15>Yeah, great question, and no, I was super excited to

0:32:56.760 --> 0:32:59.200
<v Speaker 15>have part of a lot of the team that I

0:32:59.240 --> 0:33:02.640
<v Speaker 15>worked with there flying the Starlink laser medice, and we're very.

0:33:02.600 --> 0:33:03.680
<v Speaker 5>Proud of what we did there.

0:33:03.720 --> 0:33:08.080
<v Speaker 15>And you know, I think about the job here every

0:33:08.160 --> 0:33:11.320
<v Speaker 15>day and I feel very similar, about very similar to

0:33:11.400 --> 0:33:12.680
<v Speaker 15>what I was doing at SpaceX.

0:33:12.720 --> 0:33:14.760
<v Speaker 5>And you know, SpaceX, the space Lazer.

0:33:14.480 --> 0:33:16.640
<v Speaker 15>Team was quite small and a very awesome team, and

0:33:16.840 --> 0:33:19.200
<v Speaker 15>we're building the same thing here, a very small, like

0:33:19.400 --> 0:33:23.560
<v Speaker 15>technical oriented team with really talented individuals, and the day

0:33:23.560 --> 0:33:24.840
<v Speaker 15>to day feels very similar.

0:33:24.880 --> 0:33:27.440
<v Speaker 5>We're you know, building standing.

0:33:27.120 --> 0:33:31.920
<v Speaker 15>Up high volume production, trying to deploy as much hardware

0:33:31.960 --> 0:33:34.960
<v Speaker 15>as possible, and co locating the talent right next to

0:33:35.000 --> 0:33:39.200
<v Speaker 15>the manufacturing line, and so yeah, it feels very similar.

0:33:40.560 --> 0:33:44.240
<v Speaker 2>This is about more than the underlying technology, right. This

0:33:44.480 --> 0:33:49.560
<v Speaker 2>is a field where the supply chain is dominated by China,

0:33:49.600 --> 0:33:52.680
<v Speaker 2>and so one of your ambitions is to is to

0:33:52.760 --> 0:33:55.800
<v Speaker 2>exceed that bring capacity to the United States. And you

0:33:55.880 --> 0:33:58.920
<v Speaker 2>put a timeline at twenty twenty seven on that. This

0:33:59.040 --> 0:34:01.400
<v Speaker 2>is a big, sort of big debut funding around. But

0:34:01.440 --> 0:34:04.800
<v Speaker 2>what's the roadmap from here? You're going to need more capital.

0:34:05.080 --> 0:34:06.200
<v Speaker 2>What are your priorities?

0:34:07.240 --> 0:34:11.160
<v Speaker 15>Yeah, our priority is to build as many optical interconnects

0:34:11.200 --> 0:34:14.040
<v Speaker 15>as possible and deploy as many of those as we can.

0:34:15.040 --> 0:34:18.680
<v Speaker 15>So for the immediate term, it's getting to high volume

0:34:19.280 --> 0:34:21.560
<v Speaker 15>of this first device we're making, while at the same

0:34:21.600 --> 0:34:25.320
<v Speaker 15>time planning for our long term ambitions of doing space

0:34:25.360 --> 0:34:30.920
<v Speaker 15>based laser communication and eventually one day propelling spacecraft with photons.

0:34:31.719 --> 0:34:36.000
<v Speaker 2>Right, right, So explain that distinction, right in the first instance,

0:34:36.000 --> 0:34:39.400
<v Speaker 2>who's the customer data center on Earth and then in

0:34:39.440 --> 0:34:42.520
<v Speaker 2>the future there is a distinction on this happening in space.

0:34:43.440 --> 0:34:45.480
<v Speaker 15>Yeah, yeah, So first customer, you know, we've got to

0:34:45.520 --> 0:34:48.680
<v Speaker 15>help the US deploy this compute on the ground as

0:34:48.719 --> 0:34:51.480
<v Speaker 15>fast as possible. And you know, there's a big vulnerability

0:34:51.480 --> 0:34:54.120
<v Speaker 15>in the supply chain with regards to optics and the

0:34:54.120 --> 0:34:58.040
<v Speaker 15>way those optics are assembled and manufactured all overseas, and

0:34:58.239 --> 0:35:02.160
<v Speaker 15>standing up a secure supply chain outside of uh, you know,

0:35:02.239 --> 0:35:07.040
<v Speaker 15>Asia and China specifically, really helps us leverage our product

0:35:07.080 --> 0:35:09.400
<v Speaker 15>into all of these data centers on the ground. And

0:35:09.840 --> 0:35:12.400
<v Speaker 15>when we show how much volume we can do on

0:35:12.440 --> 0:35:14.560
<v Speaker 15>the ground, it's you know, then we have to start

0:35:14.600 --> 0:35:17.319
<v Speaker 15>pushing that volume to space, and we'll be the one

0:35:17.360 --> 0:35:18.600
<v Speaker 15>strategically set up to do that.

0:35:19.640 --> 0:35:20.399
<v Speaker 3>Just real quick.

0:35:20.440 --> 0:35:23.279
<v Speaker 2>On Frive Capital a big day for them and they're

0:35:23.360 --> 0:35:26.560
<v Speaker 2>leading you around. Why is it important that they are

0:35:26.600 --> 0:35:27.040
<v Speaker 2>backing you.

0:35:28.160 --> 0:35:31.279
<v Speaker 15>Yeah, they from the beginning have just been ready to

0:35:31.320 --> 0:35:32.080
<v Speaker 15>go with us.

0:35:31.960 --> 0:35:34.759
<v Speaker 5>And deploy quickly.

0:35:34.880 --> 0:35:37.520
<v Speaker 15>And you know, our goal is to stand up this

0:35:37.600 --> 0:35:41.080
<v Speaker 15>volume production as fast as possible. And they were also

0:35:41.120 --> 0:35:43.000
<v Speaker 15>willing to work as fast as possible with us, and

0:35:43.040 --> 0:35:45.680
<v Speaker 15>we really appreciate appreciate them, like back in the founder

0:35:45.800 --> 0:35:47.799
<v Speaker 15>and also wanting to accelerate.

0:35:48.760 --> 0:35:51.080
<v Speaker 2>From the time that you're at SpaceX. Clearly like the

0:35:51.120 --> 0:35:54.200
<v Speaker 2>bigger vision has changed right now, space based data center

0:35:54.800 --> 0:35:57.800
<v Speaker 2>like that, that's what we're going towards. Do you expect

0:35:57.840 --> 0:36:01.040
<v Speaker 2>to work with your old company and with Elon Musk

0:36:01.360 --> 0:36:03.880
<v Speaker 2>to try and pitch the technology back into them.

0:36:04.719 --> 0:36:07.480
<v Speaker 15>You know, I'd always love to keep working with them

0:36:07.520 --> 0:36:11.040
<v Speaker 15>and help I just want to help connect as much

0:36:11.239 --> 0:36:16.200
<v Speaker 15>compute and send probes to deep space as much as possible,

0:36:16.200 --> 0:36:18.000
<v Speaker 15>and whoever we can work with on.

0:36:17.880 --> 0:36:19.560
<v Speaker 5>That, I'm very excited to do that.

0:36:19.719 --> 0:36:23.600
<v Speaker 15>And you know, connecting everything from the ground to space,

0:36:23.880 --> 0:36:26.880
<v Speaker 15>it's going to need to transition to optical because RF

0:36:27.080 --> 0:36:31.440
<v Speaker 15>reaches a limit and optical photons are much more efficient

0:36:31.560 --> 0:36:34.759
<v Speaker 15>and power efficient and the things the constraints on the

0:36:34.760 --> 0:36:37.120
<v Speaker 15>ground are power, and the constraints in space are also power,

0:36:37.160 --> 0:36:39.600
<v Speaker 15>and so it leads very well for what we're making here.

0:36:40.320 --> 0:36:42.160
<v Speaker 2>We are we're hearing that a lot on the show

0:36:42.360 --> 0:36:45.279
<v Speaker 2>of Late Photons of the Future. Travis Pasheer is co

0:36:45.360 --> 0:36:48.480
<v Speaker 2>founder and CEO of Mesh. Thank you very much. Now,

0:36:48.480 --> 0:36:51.840
<v Speaker 2>coming up, digital talent manager Night raises a new funding

0:36:51.920 --> 0:36:54.120
<v Speaker 2>round as it looks to expand its business.

0:36:54.160 --> 0:36:57.280
<v Speaker 3>We have more on that next. This is Bloomberg Tech.

0:37:07.000 --> 0:37:10.319
<v Speaker 2>Talent management firm Night has raised seventy million dollars to

0:37:10.400 --> 0:37:14.560
<v Speaker 2>expand its business across music, sports, gaming, and live events.

0:37:14.920 --> 0:37:18.440
<v Speaker 2>Knights founder and CEO Reduction joins us. Now this is

0:37:18.680 --> 0:37:22.600
<v Speaker 2>this is digital Hollywood, right and the management of top talent.

0:37:23.640 --> 0:37:27.000
<v Speaker 2>It's interesting to grow through venture. What do you need

0:37:27.040 --> 0:37:27.600
<v Speaker 2>the funds for?

0:37:29.000 --> 0:37:30.919
<v Speaker 16>Yeah, we're going to use it for a few different things.

0:37:30.960 --> 0:37:34.440
<v Speaker 16>I mean, we're primarily focused on talent management here at Night,

0:37:34.480 --> 0:37:36.239
<v Speaker 16>but we do have a venture studio. You know, we've

0:37:36.280 --> 0:37:39.680
<v Speaker 16>gone onto fun things like feastables and tone with Kaisanat,

0:37:39.719 --> 0:37:42.360
<v Speaker 16>and so for us, I think like the thesis was

0:37:42.400 --> 0:37:45.560
<v Speaker 16>always that talent of the future are born on the Internet.

0:37:45.760 --> 0:37:47.640
<v Speaker 16>That is very much still our thought going into the

0:37:47.640 --> 0:37:50.120
<v Speaker 16>future and so we're going to use that to be like,

0:37:50.200 --> 0:37:52.440
<v Speaker 16>what we think is the Internet's media company.

0:37:53.960 --> 0:37:57.560
<v Speaker 2>Which platforms right now are launching careers. I know that

0:37:57.560 --> 0:38:00.680
<v Speaker 2>that is a broad question, but if we talk to

0:38:01.200 --> 0:38:05.759
<v Speaker 2>the giants in broadcasting and streaming, or we talk to YouTube,

0:38:06.080 --> 0:38:08.080
<v Speaker 2>right they would all kind of accept that it is

0:38:08.160 --> 0:38:11.640
<v Speaker 2>a battle for eyeballs, even if they're slightly different mediums.

0:38:11.840 --> 0:38:14.759
<v Speaker 2>So which platform you're seeing launch the people that you

0:38:14.800 --> 0:38:15.480
<v Speaker 2>hope to serve?

0:38:16.280 --> 0:38:18.200
<v Speaker 16>Yeah, I think there's two that stand out to me,

0:38:18.360 --> 0:38:21.520
<v Speaker 16>especially in my industry. YouTube obviously being the first, Like

0:38:21.560 --> 0:38:23.560
<v Speaker 16>we just saw that they announced they have almost thirteen

0:38:23.600 --> 0:38:26.760
<v Speaker 16>percent of connected TV watch time, So they're beating Netflix,

0:38:26.760 --> 0:38:28.600
<v Speaker 16>they're beating Amazon, they're beating HBO.

0:38:29.160 --> 0:38:29.360
<v Speaker 15>You know.

0:38:29.600 --> 0:38:32.400
<v Speaker 16>The next one is TikTok. I think just primarily because

0:38:32.440 --> 0:38:35.799
<v Speaker 16>of the discoverability of content through short form, like it

0:38:35.840 --> 0:38:39.880
<v Speaker 16>doesn't matter if you have ten followers or a million followers,

0:38:39.920 --> 0:38:41.799
<v Speaker 16>Like a good video can get a lot of use

0:38:41.840 --> 0:38:42.480
<v Speaker 16>and go viral.

0:38:42.840 --> 0:38:43.800
<v Speaker 3>And so I think that has.

0:38:43.719 --> 0:38:47.960
<v Speaker 16>Created a lot of careers just because of that top

0:38:48.000 --> 0:38:51.080
<v Speaker 16>of funnel that's created regardless if you have followers or not.

0:38:52.320 --> 0:38:54.520
<v Speaker 2>You you've been at this a while, right, this is

0:38:54.760 --> 0:38:58.200
<v Speaker 2>not as if Night just suddenly came about Overnight's ten

0:38:58.280 --> 0:39:01.879
<v Speaker 2>years of work. I think now at this stage the

0:39:01.920 --> 0:39:05.839
<v Speaker 2>timing of the rays, what was the strategy behind that read.

0:39:06.400 --> 0:39:09.440
<v Speaker 16>Yeah, we've grown very linear over the last ten years,

0:39:10.320 --> 0:39:13.040
<v Speaker 16>you know, through signing different talent through the Venture Studio.

0:39:14.080 --> 0:39:16.520
<v Speaker 16>It felt like a perfect time for us. You know,

0:39:16.560 --> 0:39:18.840
<v Speaker 16>we feel like we've never been more right than we

0:39:18.880 --> 0:39:21.960
<v Speaker 16>are right now in our thesis of Internet native talent

0:39:22.280 --> 0:39:25.840
<v Speaker 16>being the future of celebrities. And so for us, like

0:39:25.880 --> 0:39:28.160
<v Speaker 16>the last ten years, we're all about, like how do

0:39:28.160 --> 0:39:30.440
<v Speaker 16>we educate, how do we continue to represent the biggest

0:39:30.480 --> 0:39:32.359
<v Speaker 16>talent on the Internet. You know, we think the next

0:39:32.360 --> 0:39:35.160
<v Speaker 16>ten years like attention is the currency. You know, we

0:39:35.200 --> 0:39:38.360
<v Speaker 16>think that individuals are more or consumers are more loyal

0:39:38.400 --> 0:39:41.440
<v Speaker 16>to individuals now more than ever. And so as we

0:39:41.480 --> 0:39:43.480
<v Speaker 16>continue this thesis, you know, this is a company that

0:39:44.160 --> 0:39:45.840
<v Speaker 16>hopefully I can run for the rest of my life.

0:39:45.920 --> 0:39:48.759
<v Speaker 16>We'll see, but I think, like, you know, the next

0:39:48.760 --> 0:39:50.759
<v Speaker 16>ten to twenty years, like we still believe in this

0:39:50.840 --> 0:39:54.240
<v Speaker 16>like internet first talent born on the Internet, the future

0:39:54.280 --> 0:39:57.960
<v Speaker 16>state of celebrity is born on the Internet. And so

0:39:58.040 --> 0:39:59.680
<v Speaker 16>it felt like the perfect time for us to make

0:39:59.800 --> 0:40:00.600
<v Speaker 16>a larger move.

0:40:01.880 --> 0:40:04.560
<v Speaker 2>You've done some some m and a for one of

0:40:04.560 --> 0:40:07.759
<v Speaker 2>a better expression. Two thousand and four, Night acquires the

0:40:07.840 --> 0:40:09.120
<v Speaker 2>Roost podcast network.

0:40:09.280 --> 0:40:12.040
<v Speaker 3>Last year Experiential Supply Co.

0:40:13.040 --> 0:40:15.400
<v Speaker 2>Is this kind of the plan now, like the seventy

0:40:15.400 --> 0:40:18.279
<v Speaker 2>million dollars can go towards some interesting properties like that.

0:40:18.960 --> 0:40:21.400
<v Speaker 16>Yeah, we've done those organically off the balance sheet. Like

0:40:21.400 --> 0:40:24.319
<v Speaker 16>we've always been a profit company, you know, We've had

0:40:24.360 --> 0:40:27.000
<v Speaker 16>a successful career, and so we bought the Roost for

0:40:27.160 --> 0:40:30.320
<v Speaker 16>Warner Brothers when they were looking to sell that asset.

0:40:30.560 --> 0:40:34.720
<v Speaker 16>Really like building our media sales apparatus. Acquiring Experiential Supply

0:40:34.920 --> 0:40:37.000
<v Speaker 16>was you know, another thesis that we're going to continue

0:40:37.000 --> 0:40:39.600
<v Speaker 16>to run after. Like we do think the world lives

0:40:39.640 --> 0:40:41.480
<v Speaker 16>on the Internet, and we do think the future state

0:40:41.480 --> 0:40:43.640
<v Speaker 16>of celebrities are born on the Internet. But we also

0:40:43.680 --> 0:40:46.520
<v Speaker 16>think that consumers value in person experiences more than ever

0:40:46.520 --> 0:40:49.000
<v Speaker 16>in the future. We are still bullish on live events

0:40:49.440 --> 0:40:52.520
<v Speaker 16>and experiences for individuals, and so that was a lot

0:40:52.520 --> 0:40:55.480
<v Speaker 16>of bad acquisition. You know, the money will go towards

0:40:55.760 --> 0:40:58.120
<v Speaker 16>you know, buying things that makes sense for the culture

0:40:58.160 --> 0:41:00.800
<v Speaker 16>that we've built here over the last ten years. Businesses

0:41:00.840 --> 0:41:03.719
<v Speaker 16>that we think intersect with the Internet, and so a

0:41:03.719 --> 0:41:05.520
<v Speaker 16>lot of what we're going to look at going forward

0:41:05.640 --> 0:41:08.600
<v Speaker 16>is as things in those categories.

0:41:08.880 --> 0:41:12.600
<v Speaker 2>Read from Night's perspective. How do you think about what's

0:41:12.640 --> 0:41:17.160
<v Speaker 2>happening with Warner Brothers, Discovery, the Netflix part, the Paramount's

0:41:17.160 --> 0:41:20.280
<v Speaker 2>guidance part. You know, does it have some ripple effect

0:41:20.320 --> 0:41:23.840
<v Speaker 2>in your world where the talent's heads get turned about

0:41:24.160 --> 0:41:27.400
<v Speaker 2>the health of industry wide or it's just not a concern.

0:41:28.200 --> 0:41:29.000
<v Speaker 3>No, it does.

0:41:29.160 --> 0:41:32.200
<v Speaker 16>Like I think the issue is just the consolidation of

0:41:32.239 --> 0:41:35.440
<v Speaker 16>all these companies provides less buyers in the ecosystem, and

0:41:35.480 --> 0:41:38.319
<v Speaker 16>so you're seeing a contraction of shows getting sold and

0:41:38.360 --> 0:41:41.120
<v Speaker 16>we've now seen that over the past three to five years.

0:41:41.440 --> 0:41:42.840
<v Speaker 3>I think that's just going to continue.

0:41:42.880 --> 0:41:45.600
<v Speaker 16>I think the consolidation, you know, worries a lot of people,

0:41:45.640 --> 0:41:49.000
<v Speaker 16>Like we are based in Los Angeles, although we aren't

0:41:49.000 --> 0:41:52.120
<v Speaker 16>necessarily traditional Hollywood, you know, we do have shows and

0:41:52.120 --> 0:41:54.520
<v Speaker 16>have sold shows to those streaming services. I think the

0:41:54.600 --> 0:41:57.000
<v Speaker 16>interesting place where we sit as a company is that

0:41:58.040 --> 0:42:02.240
<v Speaker 16>ninety percent of our client roster sees YouTube or being

0:42:02.840 --> 0:42:06.080
<v Speaker 16>a large YouTube or TikTok creator as the endgame for them,

0:42:06.320 --> 0:42:09.160
<v Speaker 16>Like they want to be large Internet personalities. They want

0:42:09.200 --> 0:42:12.000
<v Speaker 16>to control their intellectual property. They want to can control

0:42:12.040 --> 0:42:14.840
<v Speaker 16>their editing and have final cut and final say in

0:42:14.920 --> 0:42:18.160
<v Speaker 16>the product. And so I think it affects us way

0:42:18.239 --> 0:42:21.240
<v Speaker 16>less than it maybe affects the traditional talent management companies

0:42:21.480 --> 0:42:26.320
<v Speaker 16>whose revenue concentration is primarily through entertainment services that's provided

0:42:26.320 --> 0:42:29.880
<v Speaker 16>from a TV network or a Netflix. Where ours, like

0:42:29.920 --> 0:42:34.480
<v Speaker 16>the primary revenue source is YouTube, ad sense, brand sponsorships.

0:42:34.520 --> 0:42:37.239
<v Speaker 16>It's very different, and it's although it does affect us,

0:42:37.239 --> 0:42:38.799
<v Speaker 16>it's on a much smaller scale.

0:42:40.440 --> 0:42:42.960
<v Speaker 2>Reductcher, founder CEO of Night, It's great to have you

0:42:42.960 --> 0:42:45.759
<v Speaker 2>on Bloomberg Tech. Thank you very much. So does it

0:42:45.760 --> 0:42:47.360
<v Speaker 2>for this assition of Bloomberg Tech. What we were just

0:42:47.400 --> 0:42:51.279
<v Speaker 2>discussing right this morning's news that Netflix is issued a

0:42:51.280 --> 0:42:54.799
<v Speaker 2>waiver to Warner Brothers Discovery allowing them to negotiate with

0:42:54.840 --> 0:42:58.120
<v Speaker 2>paramounts guidance. It's seven days through February twenty third, and

0:42:58.200 --> 0:43:02.040
<v Speaker 2>Paramount either has to improve their bit or something happens

0:43:02.080 --> 0:43:04.040
<v Speaker 2>with Netflix, which is a bit softer. They came out

0:43:04.040 --> 0:43:07.520
<v Speaker 2>with a strong statement saying that they feel very confident

0:43:07.680 --> 0:43:10.640
<v Speaker 2>in their existing bid and you can definitely go back

0:43:10.680 --> 0:43:13.200
<v Speaker 2>listen to the conversation looking sure in markets More.

0:43:13.120 --> 0:43:15.319
<v Speaker 3>Broadly, we are seeing volatility.

0:43:15.480 --> 0:43:18.320
<v Speaker 2>We had some serious declines at the index level, the

0:43:18.400 --> 0:43:23.160
<v Speaker 2>NASDAK one hundred, the mag seven names, the Philadelphia Semiconductor Index,

0:43:23.320 --> 0:43:26.160
<v Speaker 2>they were all markedly lower. Now actually the socks is higher,

0:43:26.440 --> 0:43:29.440
<v Speaker 2>but there has been volatility coming with that. Will continue

0:43:29.440 --> 0:43:31.840
<v Speaker 2>to track it. As I said, please recap. We have

0:43:31.920 --> 0:43:34.160
<v Speaker 2>the podcast. You know exactly where to find it on

0:43:34.200 --> 0:43:37.800
<v Speaker 2>the Bloomberg terminal as well as online Apple, Spotify and

0:43:37.920 --> 0:43:39.919
<v Speaker 2>iHeart this is Bloomberg Tech.