Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a
Speaker 1: live from Coast to Coast with Caroline Hide in New
Speaker 1: York and Eva low in sentrances go.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: Open Ai becomes the world's largest startup with a five
Speaker 3: hundred billion dollar valuation following an employee share sale.
Speaker 4: Plus Tesla's vehicle sales jumped to a worldwide record in
Speaker 4: the third quarter, a surprise increase after several quarters of
Speaker 4: sales slumps. How much did the ev tax credit exploration.
Speaker 3: Helped, and how Microsoft aims to cope with a shortage
Speaker 3: of AI data center capacity, striking deals with so called
Speaker 3: neo clouds.
Speaker 4: So first we check in on these publicly traded markets
Speaker 4: that were at record highs clinging to them as we speak.
Speaker 4: The NASAK one hundred is up but five points now. Notably,
Speaker 4: we've got a wall of worry coming towards the markets
Speaker 4: at the moment. But there have been this desire to
Speaker 4: buy into chip stocks, in particular the open ai valuation
Speaker 4: that we'll dig into, the idea of the contracts that
Speaker 4: they're building with sk Heinex, with Samsung, all of that
Speaker 4: had really helped lift the socks. I'm looking at that
Speaker 4: at one point thirty percent, but really there's other stocks
Speaker 4: that are dragging the overall benchmarks a little bit lower.
Speaker 5: Edd.
Speaker 3: Yeah, the part of the argument is that it's Tesla
Speaker 3: that's doing that.
Speaker 2: Right.
Speaker 3: We had been higher pre market when the delivery numbers broke.
Speaker 3: Four hundred and ninety seven ninety nine evs delivered in
Speaker 3: the third quarter, an astonishing turnaround, a huge beat against consensus.
Speaker 3: But as we've been talking about for a while now,
Speaker 3: they started advertising in the quarter. They started emailing on
Speaker 3: a daily basis, saying, by the way the federal tax
Speaker 3: credit runs out, how big a fact was that that
Speaker 3: it's an isolated quarter of an elevated proportion of sales.
Speaker 2: Let's go to private markets.
Speaker 3: Big piece of reporting from Bloomberg Shering Gafari open AI
Speaker 3: five hundred billion dollar valuation based on employee share sale
Speaker 3: to a really intro seen group of investors. Remember Sharen
Speaker 3: broke this story first on August the sixth, But now
Speaker 3: it's done and there's actually a lot of interesting data
Speaker 3: in the report Caro about who opted to or not
Speaker 3: to participate. If you're an employee that had two years
Speaker 3: of holding the.
Speaker 4: Shares and let's get straight to sharm Gafari extraordinary scoop
Speaker 4: that first came in August. Now we get the real
Speaker 4: details and perhaps those current employees and former employees not
Speaker 4: setting as much as they could have done.
Speaker 2: That's right.
Speaker 6: So you know, again, this is a record valuation for
Speaker 6: Open Eye and for just startups right now, surpassing SpaceX
Speaker 6: as the most highly valued startup. That being said, there
Speaker 6: was more. There could have been more units sold, is
Speaker 6: what we're told. And actually employees shows not to take
Speaker 6: up all of that potential share sale, so you know,
Speaker 6: it could indicate that employees are feeling, you know, the
Speaker 6: optimistic about the future of the company and that the
Speaker 6: valuation could go even higher. But of course this is
Speaker 6: an ongoing story and there are still a lot of
Speaker 6: uncertainties as well in opening Ice future, including its ability
Speaker 6: to go forward with the restructure.
Speaker 3: When there is a tender or a secondary or any
Speaker 3: kind of financial transaction. Sharene there's always a data room,
Speaker 3: just take my word for it. And so I find
Speaker 3: the group of investors here really interesting third parties that
Speaker 3: were able to buy those shares from employees. Just run
Speaker 3: us through the list and any that caught your eye.
Speaker 6: That's right, so many of them were expected. We have Thrive,
Speaker 6: also a former large investor, as well as SoftBank, another
Speaker 6: major partner. We also have Abu, Abu, Dhab, MGX, Dragonear,
Speaker 6: and t Row And you know, MGX is an interesting
Speaker 6: one given we're seeing more money coming in from overseas,
Speaker 6: from the Middle East into AI companies. And you know,
Speaker 6: this is just an ongoing as I find an AI.
Speaker 6: Once one investment closes, it's the beginning of another one.
Speaker 6: So we can expect these sizes to just get bigger
Speaker 6: and bigger in terms of funds going in and sales
Speaker 6: being shares being seld.
Speaker 4: I mean, that's what's extraordinary is the fact that they
Speaker 4: raised money fresh money from SoftBank back in March, and
Speaker 4: the valuation is just spiraled even since then, staring even
Speaker 4: as remind us of the data and the fundamentals. The
Speaker 4: company remains unprofitable and at the moment, revenue is tiny
Speaker 4: in comparison to say a Netflix, which is also worth
Speaker 4: about five hundred billion dollars.
Speaker 2: That's right.
Speaker 6: So while we're seeing the revenue increase rapidly, they have
Speaker 6: something like seven hundred million users. At the same time,
Speaker 6: the company is also unprofitable, and that's because of the
Speaker 6: large cost to fuel basically the development of AI. There's
Speaker 6: huge data compute costs. Here are these unprecedented data centers
Speaker 6: that they're building out, there are researchers.
Speaker 5: All of that takes a lot of money.
Speaker 6: So it's still a highly capital intensive, an unprofitable business,
Speaker 6: even though the revenue is growing at a very fast rate.
Speaker 3: Bembo Sharen Gafari, It's Dev Dave Open Ai Monday, and
Speaker 3: I think we're going to be able to pose questions
Speaker 3: that might give us some of the answers to what's
Speaker 3: really going on top and bottom line at open Ai.
Speaker 3: Let's pivot from the private market side to the public
Speaker 3: public side because open AI's story is driving US equities
Speaker 3: to fresh highs. We've seen some pullback since the show started,
Speaker 3: but generally the idea was that the open ai valuation
Speaker 3: signaled a lot of optimism for AI across those public names.
Speaker 3: Nancy Tengler, CEO and CIO of Lafetengla Investments, joins us
Speaker 3: now for more. There's a lot of life in secondary markets.
Speaker 3: Right sharm was running us through tro price participating in
Speaker 3: that round. I know that this might not be your domain.
Speaker 3: But what did you make of the open ai valuation?
Speaker 3: And if someone came to you and said, Hey, Nancy,
Speaker 3: I'm putting together an SPV or something like that, would
Speaker 3: you try and get in on open ai at this
Speaker 3: private level.
Speaker 7: Yes, we would, yes, and we're actually in the process
Speaker 7: of working with a firm to do just that. But
Speaker 7: we're also interested in you know, SpaceX and XAI and
Speaker 7: many of the other names that are still private, and
Speaker 7: I think for retail investors it's an opportunity and then
Speaker 7: of course for the insiders it provides liquidity at least
Speaker 7: through the provider.
Speaker 5: We're working with one.
Speaker 3: One sec Marguerite, bring up the chart there it is okay,
Speaker 3: so open ai five hundred billion dollar valuation, SpaceX number two,
Speaker 3: four hundred billion, and then I don't see XAI in there,
Speaker 3: but I reported that XAI is raising money at a
Speaker 3: two hundred million dollar valuation. Of those three, what's your
Speaker 3: top priority?
Speaker 7: SpaceX is my greatest interest. I think we know the
Speaker 7: AI game and there's a lot of ways to play it.
Speaker 5: It's not a game, but the.
Speaker 7: Opportunity and I really want to get more exposure to space.
Speaker 7: So we just launched a fund a strategy that is
Speaker 7: focused on all of the above quantum space, nuclear robotics,
Speaker 7: and spaces of particular interest to us.
Speaker 4: Fascinating that you're looking at basically these valuations in the
Speaker 4: private side, as well as, of course all the exposure
Speaker 4: that you build and the public side. Nancy, what draws you?
Speaker 4: Is it just too hard to ignore when you're seeing
Speaker 4: companies staying private for so much longer?
Speaker 7: Yeah, well right, I mean, Caroline, we used to have
Speaker 7: the Wilshire five thousand, and now it's the Wilshair thirty
Speaker 7: five hundred. I think, you know, as an investor, my
Speaker 7: job is to look around and try to figure out
Speaker 7: ways to make money for my clients. When you're going
Speaker 7: through a transformative technological revolution like we are, you get
Speaker 7: these concentrations, you get higher than normal valuations. But that
Speaker 7: is not to say this cannot continue for some time.
Speaker 7: And as you know, I've drawn the analogy to the
Speaker 7: nineteen nineties. I think the technologies we are seeing now
Speaker 7: are much more robust than just eyeballs on a screen,
Speaker 7: which was what we were measuring in the nineties. So
Speaker 7: I'm excited about all the opportunity and really working hard
Speaker 7: to try to figure out ways to gain exposure. Because
Speaker 7: the private markets are open to a very lead group
Speaker 7: of investors, certainly we want to open it up to
Speaker 7: our clients as well.
Speaker 4: Nazie, talk about the fundamentals that you like within these companies,
Speaker 4: because yes, you're saying valuations can continue up into the
Speaker 4: right for foreseeable future. You think it's underlying technology that
Speaker 4: gets us there rather than the market being a rational
Speaker 4: lesson in some sort of hype cycle.
Speaker 7: Absolutely, so, just think back as far as Amazon. I mean,
Speaker 7: that was a valuable lesson for me as a as
Speaker 7: a value investor trained as a you know, buy when
Speaker 7: things go down valuation matters. I could never figure out
Speaker 7: how the company couldn't report earnings and continue to drive forward.
Speaker 7: I think that, and so ultimately we became we participated
Speaker 7: in the name and learned a lesson that during certain
Speaker 7: periods of time, that's what you're going to see, and
Speaker 7: you have to depend on management. You have to be
Speaker 7: focused on the underlying fundamentals. And that's that's our job,
Speaker 7: and that's why we have a team of analysts that
Speaker 7: support me and the other portfolio managers at the firm.
Speaker 7: So we're primarily focused on catalyst forout performance in the
Speaker 7: soft site, we look at all the numbers that everybody
Speaker 7: else looks at on the quantitative side, but qualitatively, we're
Speaker 7: looking for catalyst for out performance and strong management teams,
Speaker 7: and you can measure those over time. It's obviously a
Speaker 7: subjective decision, but we spend a lot.
Speaker 5: Of time on it.
Speaker 3: Nancy, We're going to go very, very deep on Tesla
Speaker 3: in the next segment. But actually, as a team, when
Speaker 3: we were talking about today's show yesterday, your name came up, right,
Speaker 3: you join us all the time. Four hundred and ninety
Speaker 3: seven ninety nine vehicles delivered in the third quarter, a record.
Speaker 3: The stock rose and now it's down almost two percent.
Speaker 3: Just your reaction and to what extent you see the
Speaker 3: expiry of the federal tax credit being the principal factor.
Speaker 5: Well, I do think it's a principal factor.
Speaker 7: And I mean I think there was some strength seen
Speaker 7: in China which was good or at least less deterioration.
Speaker 7: So I think that that is a rebound that we're
Speaker 7: going to be watching and continuing to watch closely. But
Speaker 7: for us, and I've said this to you, historically, we're
Speaker 7: interested in the name because of the energy business, which
Speaker 7: we've been talking about for two years, and I think
Speaker 7: now people are sort of, you know, excited about that business.
Speaker 7: We're interested, obviously, as everyone else is in FSD. They
Speaker 7: seem to be seeing really robust improvements. It may not
Speaker 7: be a linear acceleration. It may just be at one
Speaker 7: point we see that FSD is at the levels we need,
Speaker 7: and then they've got seven billion miles traveled and that
Speaker 7: Dwarf's Weimo. I live in Weimo Land. You know, you
Speaker 7: can't stop at a stoplight in Arizona without seeing four
Speaker 7: or five of them. And Tesla's way ahead on that.
Speaker 7: So they just need to catch up on the technology
Speaker 7: and they will because they have the data. So we're
Speaker 7: very excited about the new model Robotaxi, all of the others,
Speaker 7: and then of course Optimists, which I'm counting on as
Speaker 7: my home health care solution.
Speaker 4: My kids asking me yesterday when we're going to be
Speaker 4: getting a robot in the home, Nanci and I can
Speaker 4: see that we're all waiting on tent to hoax. But
Speaker 4: so too is the comp package for your musk. It's
Speaker 4: tied to real delivereralies of Optimus of Robotaxes twenty million
Speaker 4: evs on the roads.
Speaker 2: Are you going to be voting in favor of that?
Speaker 3: Oh?
Speaker 7: Yes, absolutely, and the Ai you know, the XAI fundraise.
Speaker 7: We would love to see the companies melt together and
Speaker 7: get access to SpaceX and XAI. We'll see. I mean
Speaker 7: that's me talking, not Elon, but we will definitely be
Speaker 7: voting in favor. I love when incentives for the management
Speaker 7: team or the visionary CEO are lined up with me
Speaker 7: and my shareholders. So we're very excited about the future
Speaker 7: of Tesla. And remember it doesn't go straight up. It's
Speaker 7: a volatile name. We were buying at two forty in
Speaker 7: the spring during the tariff tantrum. We will we will
Speaker 7: buy again when stock dips down. But it's a six
Speaker 7: percent holding in our strategy, which is the macrocycle opportunities,
Speaker 7: and then in our growth strategy it's four and a
Speaker 7: half percent holding. So we're committed to the name, and
Speaker 7: you know, we believe, we believe in Elon. Maybe I'll
Speaker 7: get a T shirt made well when the space fun
Speaker 7: goes live.
Speaker 4: When you've got the money coming in for the private
Speaker 4: funds as well, do join us. I mean you're always
Speaker 4: joining us, and we love it and that's a Tangler
Speaker 4: CEO C that's Tangler Investments. Stay well. Meanwhile, coming up,
Speaker 4: we're diving for into Tesla, into the vehicle sales that
Speaker 4: jump to a worldwide record and third quarter. I'm going
Speaker 4: to be going into what's behind this, whether it's sustainable.
Speaker 4: Stay with us. This is Bloomberg Tech.
Speaker 3: US customers help drive Tesla's third quarter sales to a
Speaker 3: record high as buyers rush to take advantage of federal
Speaker 3: tax credits before they expire. I want to get out
Speaker 3: to London and Bloomberg's Automotive.
Speaker 2: Zar Craigtrude out.
Speaker 3: Data is really important here, Okay, third quarter four hundred
Speaker 3: and ninety seven ninety nine vehicles. The expectation was we'd
Speaker 3: see a drop year on year, even if it was
Speaker 3: a sequential improvement. This this is an anomaly. This is
Speaker 3: like something happened in the quarter. Just explain it.
Speaker 8: Yeah, you know, I think this is a surprise if
Speaker 8: you're looking at the consensus and yet if you sort
Speaker 8: of were watching closely to where an estimates were coming in.
Speaker 8: Towards the very end of the month of September, a
Speaker 8: lot of sales side analysts were saying, we think these
Speaker 8: deliveries are going to be much higher than that. I
Speaker 8: think even having said that, you know, this is a
Speaker 8: surprise even for those who are you know, bullish going
Speaker 8: into this print. And you know, you do have to
Speaker 8: hand it to this company to have delivered more vehicles
Speaker 8: than they ever have, even if there are some real
Speaker 8: questions about whether there's some staying power to these numbers.
Speaker 8: Without the seventy five hundred dollars tax credit in the US,
Speaker 8: that's going to be you know, the I guess fourner
Speaker 8: and twenty dollars question on the earnings.
Speaker 4: Call in a few weeks for twenty Craig. I'm interested though,
Speaker 4: like you are, sat in the heart of the UK,
Speaker 4: and indeed Europe has been against Tesla's basically we've seen
Speaker 4: sales destruction over there in large part people blaming the
Speaker 4: politics of Elon Musk. Is that still the sentiment that
Speaker 4: you're seeing. Are you getting any other granular data that
Speaker 4: shows that maybe other regions in the world have liked
Speaker 4: the model wise and the upgrades.
Speaker 8: Of late Yeah, I mean, I think in terms of
Speaker 8: the way things have been trending in Europe, it's been
Speaker 8: very consistent. There's maybe some you know, kind of marginal
Speaker 8: narrowing of the declines over here in Europe, but still
Speaker 8: substantially down in a market that is up substantially, and
Speaker 8: in China you've seen, you know, at best, shipments move
Speaker 8: sideways flat, you know, down by small percentages in a
Speaker 8: market where you know, BYD and Jawmi and you know,
Speaker 8: domestic players really are making a lot of noise. We did,
Speaker 8: you know, see just recently some loss of momentum on
Speaker 8: BYD's part, but that's from a standpoint of really just
Speaker 8: dominating their local markets. So sort of by process of elimination,
Speaker 8: we really, you know, can can sort of come to
Speaker 8: this conclusion that the US is really what drove.
Speaker 2: This result for Tesla. We'll see to what extent.
Speaker 8: You know, Elon Musk is willing to sort of get
Speaker 8: into that, but I think we've already heard from him
Speaker 8: during the last earnings call that you know, this this
Speaker 8: could be a company that's in for a few rough
Speaker 8: quarters as a result of this pullback of support from
Speaker 8: the US government.
Speaker 4: Really most crowdu down. Thank you as always for the
Speaker 4: thorough analysis. Let's stick with Tesla sales. Bring in Stephanie
Speaker 4: Valdez Street. She is the director of Industry insights of
Speaker 4: Coxa Automotive and just the larger picture in the US.
Speaker 4: For Stephanie, it was but earlier in the week that
Speaker 4: we saw Jim Farley, CEO of Ford saying the EV
Speaker 4: market in the US is going to slump by half
Speaker 4: because of the policy is currently being enacted here. And
Speaker 4: meanwhile we see Tesla jump but because of that EV
Speaker 4: tax credit expire, potentially, what is the forward looking analysis
Speaker 4: of yours for US EV sales for Tesla?
Speaker 9: Yeah, definitely, we knew Q three was going to be
Speaker 9: a record quarter, right driven by policy. Right, everyone created
Speaker 9: a sense of urgency, whether it was dealers, OEMs, and
Speaker 9: so consumers reacted. So we're probably going to reach about
Speaker 9: four hundred and ten thousand, probably ten percent market share
Speaker 9: in the US market, and Tesla has definitely taken advantage
Speaker 9: of that, but once again, that was policy driven. Moving
Speaker 9: into Q four, we're going to see a slowdown. However,
Speaker 9: I've already seen and you've probably seen some of the
Speaker 9: manufacturers are going to continue a seventy five hundred dollars
Speaker 9: credit going into Q four. On leasing, Hyundai mentioned they're
Speaker 9: going to reduce their Ionic five by you know, ninety
Speaker 9: eight hundreds and twenty six model and continue to offer
Speaker 9: the seventy five hundred.
Speaker 3: So just very specifically, Stephanie, in this quarter that's just
Speaker 3: been reported. In the Tesla's case, specifically, you see evidence
Speaker 3: that the consumer knew that the federal tax credit was
Speaker 3: running out and so took advantage of that to make
Speaker 3: a decision and either purchase or lease a vehicle.
Speaker 9: Oh definitely, Yeah, Like, I think the consumers became very
Speaker 9: aware of this incentive. If you went to any online
Speaker 9: search website, you saw that, you know, the tax credit
Speaker 9: was there, it was winding down, And I think definitely
Speaker 9: this sense of urgency created consumer reaction, and we're seeing
Speaker 9: that in the data. The numbers are still coming in
Speaker 9: for September in the US, but definitely going to be
Speaker 9: a record quarter and you know, highest market share to date.
Speaker 3: Go There's so many things that I want to poke
Speaker 3: around at. Like what sources inside Tesla told me in
Speaker 3: recent weeks was like, hey, have you been noticing the
Speaker 3: advertising we've been doing on YouTube and Instagram, something that
Speaker 3: Elon Musk historically is completely against. But I'm also like,
Speaker 3: almost five hundred thousand vehicles in the quarter. Do you
Speaker 3: see that as just being a one time thing like
Speaker 3: would this be replicated because it has to if he's
Speaker 3: going to deliver twenty million vehicles over a ten year period.
Speaker 3: That's the math five hundred thousand a quarter.
Speaker 9: Yeah, I think it's going to be challenging, right because
Speaker 9: I think just I think a lot of consumers that
Speaker 9: were considering buying a vehicle EV specifically pulled ahead bought
Speaker 9: it in Q three because of the incentives, and so
Speaker 9: I think just we're going to see that slowdown coming
Speaker 9: Q four and we'll start to see the market stabilize.
Speaker 9: What's that natural demand for evs? And I think it's
Speaker 9: going to be dependent on for Tesla, right once again
Speaker 9: having some product, new product that's going to resonate with consumers.
Speaker 9: And then I think the other challenge for Tesla is
Speaker 9: navigating the changes in the regulatary policy. You know that
Speaker 9: revenue that've gotten from carbon credit will soon disappear, and
Speaker 9: so how do they navigate that? And once again, I
Speaker 9: think they do have some opportunities with energy storage. They
Speaker 9: have their AI ROBOTAXI, so they have stuff in play,
Speaker 9: but it's navigating the short term when demand goes down
Speaker 9: and have I not the product available, new product that
Speaker 9: resonates with customers.
Speaker 4: It's definite go global because we can with you. And
Speaker 4: what's so interesting is while the EV market is getting
Speaker 4: smaller here in the US as a policy, China is
Speaker 4: going up into the right. Europe it's expanding. But Tesla's
Speaker 4: foothold has not been Can they turn that around?
Speaker 9: I think they can if they continue. I mean the
Speaker 9: model why. I think the sixth three row or the
Speaker 9: sixty model why is really doing well in China now.
Speaker 9: I think if they continue to, you know, once again
Speaker 9: have new product. But I think the Chinese OEMs, you
Speaker 9: have voids shell me that are really gaining market share,
Speaker 9: and I think Tesla has stiff competition. So I think
Speaker 9: it's going to come down to having product and being
Speaker 9: able to resonate that with the consumer.
Speaker 2: There definitely.
Speaker 3: Voudez Tred, director of Industry in Sitess Auto Motive, we
Speaker 3: really appreciate having you.
Speaker 2: On the show. CARO like check me on this.
Speaker 3: When we spoke to Robin Denholms, she was crystal clear
Speaker 3: like the twenty million EV sales targets there for a
Speaker 3: reason I went onto the Tesla I our website. All
Speaker 3: of their factories around the world are capable of building
Speaker 3: two million vehicles a year, so he's going to have
Speaker 3: to hit five hundred thousand every quarter.
Speaker 2: Like, am I understanding that? Right?
Speaker 4: Delivery is what I'm interested? Is production pulled back a
Speaker 4: bit as well? And tell us is that about the
Speaker 4: change in the way that they're moving to different vehicles
Speaker 4: and they thinks about increasing improving model wise and model threes.
Speaker 3: The data not in this press release on quarterly deliveries
Speaker 3: is inventory and inventory days and you know, look at that.
Speaker 3: Actually you can you can kind of work out using
Speaker 3: satellite imagery how many vehicles are really hot on a
Speaker 3: lot exactly. But yeah, and then the sheer reaction is
Speaker 3: kind of weird, right, you know. I guess people are
Speaker 3: saying this was a one time thing because of the
Speaker 3: tax credit.
Speaker 4: And the shares have done rather well. We maybe have
Speaker 4: a little bit of a profit taking moment. It's time
Speaker 4: now for talking tech and first up AI language platform
Speaker 4: deep l It is said to be exploring in potential
Speaker 4: us ipo now. According to sources, the Google Translate rival
Speaker 4: based in Europe, has held preliminary discussions with advisors on
Speaker 4: the listing. The possibility of share sales taking place as
Speaker 4: soon as next year. Plus a notorious ransomware group have
Speaker 4: claimed to install in data from a suite of Oracle apps.
Speaker 10: Now.
Speaker 4: The hackers claimed to have reached Oracle's e business suite,
Speaker 4: giving them access to finances, supply chains, and customer relationships.
Speaker 4: In one case, the group has demanded a ransom after
Speaker 4: fifty million dollars and then Musk and X they have
Speaker 4: settled with three former senior Twitter executives who said that
Speaker 4: they were wrongly denied fifty three million dollars worth in
Speaker 4: severance after the takeover. Now the deal comes six weeks
Speaker 4: after Musk and X moved to settle a separate class
Speaker 4: action alleging six thousand laid off workers will own as
Speaker 4: much as five hundred million dollars at least in severance
Speaker 4: ed okay.
Speaker 3: Coming up on the program, Microsoft copes with data center
Speaker 3: shortages through a thirty three billion dollar deal with Nebus Group.
Speaker 3: The idea is that if you can't do it with
Speaker 3: your own gear looked. The Neo Cloud stock down one
Speaker 3: point six percent in the market. Nebuus is up higher.
Speaker 3: But there's also a bigger picture story at play in
Speaker 3: the market today about how optimistic or not we are
Speaker 3: about AI. This is Bloomberg Tech. Welcome back to Bloomberg Tech.
Speaker 3: I'm going to take another look at Tesla. Look, we're
Speaker 3: down when the numbers hit in pre market. We were
Speaker 3: up significantly almost five hundred thousand vehicles delivered in the
Speaker 3: third quarter. But it's a one time anomaly and it's
Speaker 3: driven by consumers, particularly in the United States, flocking to
Speaker 3: Tesla vehicles because of the expiring of a federal tax credit.
Speaker 3: It's also stocked that was up twelve percent year to date,
Speaker 3: had a sort of a rebound from April lows, and
Speaker 3: maybe there's a bit of pulling back here. I don't
Speaker 3: really know, but the consensus seems to be this was
Speaker 3: a one time deal and what was a record corder
Speaker 3: for deliveries, and the future isn't even about.
Speaker 2: Cars, is it. I'm also looking at Microsoft.
Speaker 3: This is kind of interesting because there's some newsflow about Microsoft.
Speaker 3: We're about to get to it, but the early part
Speaker 3: of trading in the session was actually about open AI's
Speaker 3: valuation five hundred billion dollars per Bloomberg reporting in a
Speaker 3: secondary and the simple logic that it's a signal of
Speaker 3: optimism for AI broadly, and it carries a lot of
Speaker 3: names with it, we're now down one point six percent Carroc.
Speaker 3: There's also the neocloud deals and.
Speaker 4: We've got to dig into that because it's a fascinating
Speaker 4: perspective of just the rampant demand for AI compute right
Speaker 4: now across the world. And to break that the story down,
Speaker 4: it's Bloomberg's Brodie Ford who is articulated and found out
Speaker 4: that basically there's been thirty three billion dollars spent by
Speaker 4: Microsoft on neo clouds. You're talking European players like n Scale, Nebeus.
Speaker 4: There's also local player core Weave. Why would the AI
Speaker 4: data center like render outer of that we all know
Speaker 4: for asu're be turning to others.
Speaker 10: Yeah, it's kind of funky, right, It's like if I
Speaker 10: was paying somebody to write stories and I was still
Speaker 10: writing stories. I mean, it's like, essentially, because we have
Speaker 10: huge capacity strains, right, Microsoft needs to get as many
Speaker 10: chips online as it can, both for its customers itself
Speaker 10: and open AI, and it's needing to kind of pull
Speaker 10: every single lever it can, and so it's emerged as
Speaker 10: a major customer for all of these names like the
Speaker 10: core weaves and the nebuuses which have become you know,
Speaker 10: very newsy in recent months.
Speaker 3: It's like managing assets, right, and you know the point
Speaker 3: of a neocloud is it's dedicated to AI, either training
Speaker 3: or influence and you know storage running other software.
Speaker 2: You know, that's a different thing.
Speaker 3: Talls me about the figure of thirty three billion dollars though, like,
Speaker 3: is that news? Is it something that we were able
Speaker 3: to work out? Because Microsoft doesn't disclose it in like
Speaker 3: quarterly earnings or something like that.
Speaker 10: So Microsoft has just kind of disclosed it in piecemeal ways,
Speaker 10: and likely it is going to be much higher than
Speaker 10: that thirty three. What we have been able to discover
Speaker 10: is what this capacity is actually being used for. And
Speaker 10: in many cases it's for Microsoft to build their own
Speaker 10: AI models. And that's surprising because it's there's a larger
Speaker 10: amount of investment in their own internal AI teams than
Speaker 10: many had realized. And the points to them saying, man,
Speaker 10: we better catch up with the open eyes and anthropics
Speaker 10: and have our own models on hand, and we're going
Speaker 10: to use the neo clouds to do it.
Speaker 4: And Mostphah Sulliman, who came from deep Mind, went to
Speaker 4: Microsoft with an inflection being bought in this rather odd way.
Speaker 4: He's the man behind the consumer AI offering. He's I mean,
Speaker 4: you've found out that basically the first larger language model
Speaker 4: they're building internally under him been using care Weave's assets
Speaker 4: over in Oregon.
Speaker 3: I think it is, which is another way of saying
Speaker 3: that're using Nvidia Gear to do it.
Speaker 4: Yeah, using basically via core Weave. But also what's interesting
Speaker 4: is the numbers that you have to orientate yourself around,
Speaker 4: because basically it allows Amy Hood not to have to
Speaker 4: write this all as KPEX.
Speaker 10: That's a really important point, right If you buy a
Speaker 10: bunch of servers, now you have to appreciate them. Now
Speaker 10: it's on your capital expenditures, not you're operating, and investors
Speaker 10: want to see a good balance there. And you know,
Speaker 10: Microsoft's then able to one's surrending from neal clouds to
Speaker 10: say if in five years we actually don't really need
Speaker 10: that many GB three hundreds, would rather use more Vera Rubins,
Speaker 10: bye bye, We don't need a deal with all these
Speaker 10: servers or you don't have necessarily a use for That's
Speaker 10: what it allows them to do.
Speaker 3: Potentially, Brody thrown around your GB three hundreds if there
Speaker 3: are rubebins appreciate the reforming.
Speaker 4: At has he bench pressed them, though that is a
Speaker 4: question for.
Speaker 3: Those uninitiated in video. Once, let me pick up an
Speaker 3: h A DGX, which is an eighty pound We'll get
Speaker 3: to it another time. Let's talk about the investor perspective
Speaker 3: of Brian Kirshman, GQG Partner's portfolio manager joins us Now.
Speaker 3: Gkg's portfolios have recently turned significantly underweight Tech on concerns
Speaker 3: of deteriorating fundamentals, and a part of what Brody was discussing, right.
Speaker 3: I know that we can talk about Microsoft here because
Speaker 3: there's some exposure in the funds, but the idea that
Speaker 3: you rely on the neo clouds so it doesn't show
Speaker 3: up on the balance sheet in the capex. What was
Speaker 3: your sort of reaction to hearing that?
Speaker 11: So, I think what it speaks to from a Microsoft
Speaker 11: perspective is sort of that Capex sort of notion where
Speaker 11: you don't necessarily want to spend all of your capacs
Speaker 11: on sort of an asset that could depreciator. It may
Speaker 11: not necessarily be as advantageous for you on a go
Speaker 11: forward basis. There's a lot of things that are evolving
Speaker 11: really quickly when it comes down to these things, but
Speaker 11: if I were to take a step back and you
Speaker 11: had mentioned sort of we've become a little bit more
Speaker 11: as cautious, so to speak, on sort of these names
Speaker 11: in general and from an AI perspective, And I think
Speaker 11: one of the reasons for that is there's been a
Speaker 11: whole lot of spending on the capack side of things,
Speaker 11: six hundred billion dollars in spending in CAPEX, and really,
Speaker 11: if you take out the infrastructure spending side of this,
Speaker 11: there's only been about thirty billion dollars in revenue that
Speaker 11: have been generated off of this. So our issue here
Speaker 11: is that there is a lack of headroom sort of
Speaker 11: returns that are coming through on a lot of these
Speaker 11: types of businesses over the course of time. Now, Microsoft,
Speaker 11: to its credit, has a software business. They have sort
Speaker 11: of steady earnings. They have been able to deliver some
Speaker 11: decent results over the course of time, But we are
Speaker 11: becoming more skeptical about sort of a lot of things
Speaker 11: on the A side where these returns coming from you,
Speaker 11: the open AI in particular.
Speaker 4: Yeah, I'm sorry, I mean, Brian, we're looking at a
Speaker 4: note that your team put out September the eleventh. You
Speaker 4: rang that alarm bell basically saying, we believe that the
Speaker 4: sector has a significant inflection point and everyone's making a
Speaker 4: one way better as you see it on ai Mania,
Speaker 4: and they're ignoring the alarming fundamentals. For you, the alarming
Speaker 4: fundamentals are that there is a lack of revenue today,
Speaker 4: is it not? Therefore, can you not just make that
Speaker 4: bet that eventually open ai will make three hundred billion
Speaker 4: dollars worth in revenue by twenty thirty. That vindicates the
Speaker 4: amount that they have to spend on all this compute.
Speaker 11: So I think it becomes hard because if you actually
Speaker 11: look at the data behind the set, look at open ai,
Speaker 11: and they have about a two percent conversion rate in
Speaker 11: terms of people that actually want to pay for the service.
Speaker 11: That means ninety eight percent of people that use open
Speaker 11: ai aren't actually paying for it. So now they have
Speaker 11: seven hundred million users globally, about half of those are
Speaker 11: coming from the emerging markets. And what's interesting there if
Speaker 11: you think about the unit economics of sort of cloud
Speaker 11: and I'm sorry, sort of the ai sort of side
Speaker 11: of things, is that this isn't like SaaS. So this
Speaker 11: isn't like a CRM business where you add additional users
Speaker 11: and it all sort of that revenue drops to the
Speaker 11: bottom line. There is a high cost to compute that
Speaker 11: comes along with this, So you need to generate some
Speaker 11: sort of revenues off of each one of these users. Now,
Speaker 11: with half of that user base coming from the emerging markets,
Speaker 11: a significant chunk coming from India. For example, if I
Speaker 11: can get a five G telephone plan within India for
Speaker 11: less than ten dollars a month, do I really think
Speaker 11: that folks are going to pay twenty dollars a month
Speaker 11: for a subscription to chagbt?
Speaker 2: Okay, here we go.
Speaker 3: I like this because we're I think we're looking at
Speaker 3: the same data sets. So the top story today is
Speaker 3: open ai being valued at five hundred billion dollars on
Speaker 3: the latest secondary round. But the big question here is
Speaker 3: is where the future for open ai lays on subscriptions
Speaker 3: or on enterprise. The data point that I look at
Speaker 3: is that it has a user base. You know, it's
Speaker 3: like seven hundred million a monthly, right, Caro, how much
Speaker 3: of that user base is free and then converted to
Speaker 3: being a paying subscribe Because that kind of answers all
Speaker 3: your questions.
Speaker 11: Yeah, So that's exactly the stat that I was referring
Speaker 11: to from what we've seen, only about two percent of
Speaker 11: those folks actually convert over to being paying users, which
Speaker 11: means two percent yes, And so that means that ninety
Speaker 11: eight percent of folks that are using this actually don't
Speaker 11: find enough value to actually sort of spend money on this. Now,
Speaker 11: going back to that India data point that I was
Speaker 11: referencing earlier, if you think about those folks and you
Speaker 11: need to sort of charge call it twenty dollars a
Speaker 11: month for some sort of subscription to make this break
Speaker 11: even profitability or even come close to that. In India,
Speaker 11: you have you know, Barthi Airtel that has a deal
Speaker 11: with Perplexity that offers this service for free across parties.
Speaker 11: So it becomes really hard to see where the monetization
Speaker 11: path comes on a lot of these things over the
Speaker 11: course of time. Now, the other side of this is
Speaker 11: on the enterprise side. So a lot of people say, okay, well,
Speaker 11: maybe it's more of a B to B sales. And
Speaker 11: there's a lot of things that people are investigating or
Speaker 11: looking at from the enterprise side in terms of I
Speaker 11: can use AI to get efficiencies and things like that study.
Speaker 11: I think we all know that by now being quoted
Speaker 11: in terms of the lack of sort of effectiveness, and
Speaker 11: a lot of those We've talked to other tech consultants recently.
Speaker 11: In fact, one one of the big three consultant firms,
Speaker 11: so that eighty five percent of the projects that they're
Speaker 11: working on, so the four hundred projects they've been done
Speaker 11: on a year to day basis, eighty five percent of
Speaker 11: those projects were absolutely useless.
Speaker 5: I said, fifteen percent generates some sort of benefit.
Speaker 4: You're literally sort of echoing exactly the conversation that we
Speaker 4: had with Synthesia's CEO founder yesterday, saying basically, only about
Speaker 4: fifteen percent or even vainly working, and only five percent
Speaker 4: actually working well. But Brian, can you not think that
Speaker 4: eventually they will work? And that's actually more to implementation
Speaker 4: issues rather than actually the fact that they're not adding value.
Speaker 11: So I think you have to show me sort of
Speaker 11: the math and the monetization and then the pathway for
Speaker 11: that working. There's a lot of data organization that needs
Speaker 11: to happen. There's a lot of things that need to
Speaker 11: happen to get to that point. And what we're seeing
Speaker 11: in terms of large language models is we're kind of
Speaker 11: peeking out in terms of what the capabilities are, and
Speaker 11: you saw that sort of transitioning from GPT four to
Speaker 11: GPT five. It's not simply you throw more compute at
Speaker 11: the problem and you solve bigger and more complex large
Speaker 11: language models. There's more post training types of things that
Speaker 11: are coming through, and you're seeing that the models are
Speaker 11: actually peeking out in terms of their effectiveness. And at
Speaker 11: the end of the day, these are extrapolators, so you're
Speaker 11: guessing what the next letter is, what the next word
Speaker 11: is based on a large training set. I can't think
Speaker 11: for you, and it can't sort of, you know, make
Speaker 11: those decisions for you. And I think you're starting to
Speaker 11: see that within the enterprise side of things. Now to
Speaker 11: pivot to an even bigger question here is where has
Speaker 11: this spending actually come through and where are we actually
Speaker 11: seeing the money spent. And that is actually more on
Speaker 11: the hyperscaler side of things, so actually providing the cloud
Speaker 11: services where the data is coming through and where you're
Speaker 11: paying for it on the cloud side of things, and
Speaker 11: this is also fairly concerned.
Speaker 3: I'm sorry to jump in because we'll run out of time.
Speaker 3: That linked to that, including the top line growth discussion,
Speaker 3: what we've asked private Market and public MARKETATIST Week is
Speaker 3: their assessment of the role debt is playing in all
Speaker 3: of these infrastructure projects and how worried or not one
Speaker 3: should be about that.
Speaker 5: Yeah, so debt or nodebt.
Speaker 11: One of the points that I was trying to make
Speaker 11: earlier was that if you look at the pricing dynamics
Speaker 11: within cloud, they're coming under a lot of pressure and
Speaker 11: there's a lot of increased competition that's coming through, and
Speaker 11: I think that's where we're really struggling on a lot
Speaker 11: of these things. Or you have Oracle coming in and
Speaker 11: undercutting price by forty to seventy percent on a lot
Speaker 11: of these enterprise deals, and you're seeing that dragging down
Speaker 11: in terms of the pricing a lot of across a
Speaker 11: lot of the cloud players, including like an AWS and
Speaker 11: things like that. So it becomes a less profitable venture.
Speaker 11: The switching costs are becoming a little bit lower, and
Speaker 11: the economics aren't quite as good. It's becoming more commoditized,
Speaker 11: and that's where we really struggle because there's a whole
Speaker 11: host of investments that's happening in this area and it's
Speaker 11: becoming increasingly commoditized. Similar to the fiber build out, so
Speaker 11: to speak back in the dot com boom and bus cycle.
Speaker 4: The commoditized element of concern, What about the circularity argument
Speaker 4: that we can and that feeds into the debt question
Speaker 4: in many.
Speaker 5: Ways absolutely so.
Speaker 11: Then the other question to ask is, if this is
Speaker 11: such a fantastic investment on a go forward basis, why
Speaker 11: do you have participants in the ecosystem that are actually
Speaker 11: funding their customers and then those cash flows are then
Speaker 11: coming back to them. So in a lot of the
Speaker 11: sort of obscure sort of arrangements and deals as well
Speaker 11: in terms of special purpose vehicles JV structures, where are
Speaker 11: you putting some of these assets into other sort of
Speaker 11: places where you can depreciate the debt or you can
Speaker 11: depreciate the assets within those other vehicles and it's not
Speaker 11: sitting directly on your balance sheet. So this tends to
Speaker 11: happen later in a cycle where you start to see
Speaker 11: a little bit more aggressive accounting coming through, and you
Speaker 11: start to see some of these things that are starting
Speaker 11: to become a little bit more obscure. That has us
Speaker 11: concern that we can't see a true sort of trajectory
Speaker 11: where the economics are coming through.
Speaker 5: That's what has this concern right now and.
Speaker 4: Why you've gone under way. Brian Kirshman. Great to have
Speaker 4: you come back soon. GQG Partners, We thank you for
Speaker 4: coming up. Apple hits pauls on read I think it's
Speaker 4: Vision Pro headsets. We discussed the rivalry with Meta as
Speaker 4: a Bloomberg.
Speaker 3: Tech Apple is said to be ditching plans to revap
Speaker 3: its Vision pro headsets. Instead, the iPhone maker is said
Speaker 3: to be looking to fast track and develop smart glasses
Speaker 3: to rival metas ray bands.
Speaker 2: That's the reporting.
Speaker 3: Let's get to the analysis of Apple's entry into the
Speaker 3: smart glass glasses category of anaag Rana Bloomberg Intelligence senior
Speaker 3: tech analysts. They have a lot on their plate right
Speaker 3: now to shift a new generation of handset of smartphone.
Speaker 3: But have you modeled for the idea that they enter
Speaker 3: a new category, the smart glass, away from augmented in VR.
Speaker 12: No, not yet, Danil. We have to see what it is.
Speaker 12: We have to see what kind of potential reception it's
Speaker 12: going to be. I think Meta has a massive lead here,
Speaker 12: so you know, you just can't sign off just because
Speaker 12: it's an Apple product that it's going to do well.
Speaker 12: I think it's going to have to see the details
Speaker 12: and before we start to model any you know, kind
Speaker 12: of shipment.
Speaker 2: Should they be fast tracking?
Speaker 12: I mean it is, but at the end of the day,
Speaker 12: a lot depends on the models that go into it.
Speaker 12: So AI is a very big on device. AI is
Speaker 12: a very big part of any of these edge products,
Speaker 12: and I think, as we know, Apple has to get
Speaker 12: that thing first right before they can move on to
Speaker 12: some of those features.
Speaker 3: Anarag, I've been reading your latest research wait times, inventory
Speaker 3: handsets of the IFN seventeen generation.
Speaker 2: Your conclusion, yeah, I see.
Speaker 12: I think that's a good part is the base model's
Speaker 12: doing very well, the pro is doing very well, but
Speaker 12: iPhone Air is not at all doing well. And frankly,
Speaker 12: that was the one model we thought could get some traction.
Speaker 12: But it seems like the battery life is an issue there.
Speaker 12: And the second piece could be it's not available in
Speaker 12: China right now and that could be another driving factor.
Speaker 4: Must read always Bloomberg Intelligence. Anna Ragrana, thanks so much
Speaker 4: for spending time with us. Meanwhile, Peloton shares, let's talk
Speaker 4: about half they've performed after yesterday. They continued to be
Speaker 4: on the downside after unveiling revamped hardware software along with
Speaker 4: new higher prices for its equipment and subscriptions. We spoke
Speaker 4: with Peter Stern to CEO yesterday about the new features.
Speaker 13: We are focused both on existing members as well as
Speaker 13: non members. For existing members, they're getting so much today.
Speaker 13: We are introducing for everyone, regardless of when you bought
Speaker 13: your equipment, the benefits of peloton Iq, and that's just
Speaker 13: included in your membership. We are now including a new
Speaker 13: acquisition that we did a company called breath Work, because
Speaker 13: we know the power of breathing and how it can
Speaker 13: help people with stress and anxiety and depression and improve
Speaker 13: heart rate variability and improve blood pressure. So everyone's getting that.
Speaker 13: Major partnerships, for example, one with the Hospital for Special
Speaker 13: Surgery to focus on injury prevention and rehabilitation. All of
Speaker 13: these things happen for existing members, but if you're not
Speaker 13: an existing member, there has never been a better time
Speaker 13: to become one. With the launch of this all new
Speaker 13: equipment lineup the Cross Training Series. Now we're delivering the
Speaker 13: benefits of both cardio and strength because we know that
Speaker 13: adults should be doing a couple of hours at a
Speaker 13: week of cardio and two days of strength training every week.
Speaker 13: You can do that now, all with one piece of
Speaker 13: equipment that makes it super easy.
Speaker 4: It's almost in many ways like cross training is the
Speaker 4: way that which you're sort of identifying it. But if
Speaker 4: I look at the analyst notes and maybe the reaction
Speaker 4: from the stock is because a lot.
Speaker 2: Of this have been maked in.
Speaker 4: You've already given us full year forecasts that in many
Speaker 4: way talk about what churn you're expecting, but what subscriber growth,
Speaker 4: what do you think this will spur in terms of support.
Speaker 13: So we knew, of course as we went into this
Speaker 13: year what we were going to be launching, and we
Speaker 13: were able, as you point out, Caroline, to bake all
Speaker 13: of that into our guidance for the year. But we
Speaker 13: also included in our guidance that as the year progresses,
Speaker 13: we will be inflecting back toward growth. And that's a big,
Speaker 13: big step for us as a company. We had a
Speaker 13: couple of years where we've been down as we have
Speaker 13: regrouped after the pandemic, and we are now in such
Speaker 13: a good place where you see us having reignited our
Speaker 13: innovation engine. Of course, our customer love has never left us.
Speaker 13: Customers really just appreciate what Peloton does for them and
Speaker 13: in particular have their deep connection with our instructors. So
Speaker 13: we're building on that foundation and now feel even more
Speaker 13: confident about our future than ever before.
Speaker 3: That was Peloton's CEO Peter Stern speaking to Caro in
Speaker 3: a big conversation.
Speaker 4: Who will be the next CEO of Disney? The searches
Speaker 4: on and right now the board has focused on four
Speaker 4: internal candidates, including Josh Damarrow, Banna Walden, Alan Bergman, and
Speaker 4: Jimmy and Pataro. Now this is the company is getting
Speaker 4: ready to name a new CEO early next year, but
Speaker 4: it sounds though conversations are starting to steer towards one
Speaker 4: particular name. Lucas Shaw has the details. Why after Bob Chapek,
Speaker 4: would it be deemed that the person in charge of
Speaker 4: experiences and parks is the right pick?
Speaker 14: Lucas well, Look, it's both about personality and the future
Speaker 14: of Disney. You look at where Disney's putting all of
Speaker 14: its money going forward, it's into that parts and experience.
Speaker 5: This division.
Speaker 2: Most of the capex over the.
Speaker 14: Next decade is going there, whether expanding existing parks or
Speaker 14: building new parks. And Josh is also a very different
Speaker 14: personality than Bob Shapek, right, he seems to have more
Speaker 14: facility with other parts of the business. He frankly looks
Speaker 14: like a Disney CEO, as weird as that may be
Speaker 14: to sound, or as weird as that may sound, And
Speaker 14: he is just seen as very well qualified relative to
Speaker 14: the other candidates in the business and a Disney lifer,
Speaker 14: which matters at a company that has a very distinct culture.
Speaker 3: He was around and hanging out in some valley in
Speaker 3: July saw him. The screen Time team gave a detailed
Speaker 3: report about a breakfast that took place Lucas, I think
Speaker 3: it's worth you explaining to the audience what happened, why
Speaker 3: it's significant.
Speaker 14: Well, Bob Iger, the current CEO of Disney, who's been
Speaker 14: at the company for more than two decades, was having
Speaker 14: breakfast with someone who said what many in Hollywood are
Speaker 14: already thinking and saying, which is Josh is going to
Speaker 14: have the job, and said something positive about how he
Speaker 14: would do in it, and Bob reacted very negatively, insisting
Speaker 14: that the board has not made a decision. And there's
Speaker 14: two important things to know about this. One is that
Speaker 14: Disney is a company. Even though everyone in Hollywood believes
Speaker 14: that Josh is now the clear front runner, the company
Speaker 14: is insisting and has made no decisions, and it's not
Speaker 14: going to make any news about this until early next year.
Speaker 14: The other is that Bob Iger, who has been pretty
Speaker 14: involved in succession the last few times, which have not
Speaker 14: processes that have not gone well, is said to be
Speaker 14: more marginalized this time because the board knows they need
Speaker 14: to get it right, and one way to get it
Speaker 14: right is to not have the current CEO as involved
Speaker 14: as he has been. And so I think this is
Speaker 14: just a source of great frustration for Bob, who doesn't
Speaker 14: want to be seen as a lame duck, but also
Speaker 14: doesn't have as much control over this as he has.
Speaker 4: Briefly, Lucas, I just want to switch Gears to Netflix.
Speaker 4: It's down for four straight days now. There is growing
Speaker 4: anxiety about what happening over an X Andino Musk.
Speaker 14: I mean maybe growing anxiety among a few investors. I
Speaker 14: am not detecting that with my sources at the company,
Speaker 14: most of whom would point out that it's a little
Speaker 14: bit ironic for someone who's been a free speech warrior
Speaker 14: to browbeat them for a television show that was released
Speaker 14: like three to five years ago.
Speaker 3: Bloombergs Lucashaw, who leads the screen time team, Thank you
Speaker 3: so much. That does it for this edition of Bloomberg Tech.
Speaker 3: But screen Time returns next week live from Los Angeles.
Speaker 3: You got a tune in conversations with the best of
Speaker 3: the entertainment industry, including Jimmy Kimmel, Caroline Yeah.
Speaker 4: I cannot wait to go. Cannot wait to hear the
Speaker 4: conversations Lucas is going to conduct to many others do not.
Speaker 4: In the meantime, forget to check out our podcast. Find
Speaker 4: it on the terminal as well as online on Apple, Spotify,
Speaker 4: and iHeart. This is Bloomberg Tech from New York.