WEBVTT - OpenAI Becomes World’s Largest Startup 0:00:02.520 --> 0:00:12.639 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 0:00:12.680 --> 0:00:16.400 live from Coast to Coast with Caroline Hide in New 0:00:16.520 --> 0:00:19.000 York and Eva low in sentrances go. 0:00:21.239 --> 0:00:22.799 This is Bloomberg Tech coming up. 0:00:22.880 --> 0:00:26.520 Open Ai becomes the world's largest startup with a five 0:00:26.600 --> 0:00:30.680 hundred billion dollar valuation following an employee share sale. 0:00:30.520 --> 0:00:33.800 Plus Tesla's vehicle sales jumped to a worldwide record in 0:00:33.840 --> 0:00:36.559 the third quarter, a surprise increase after several quarters of 0:00:36.600 --> 0:00:41.080 sales slumps. How much did the ev tax credit exploration. 0:00:40.760 --> 0:00:43.720 Helped, and how Microsoft aims to cope with a shortage 0:00:43.760 --> 0:00:47.520 of AI data center capacity, striking deals with so called 0:00:47.600 --> 0:00:48.440 neo clouds. 0:00:48.800 --> 0:00:52.040 So first we check in on these publicly traded markets 0:00:52.080 --> 0:00:55.560 that were at record highs clinging to them as we speak. 0:00:55.600 --> 0:00:59.400 The NASAK one hundred is up but five points now. Notably, 0:00:59.440 --> 0:01:01.960 we've got a wall of worry coming towards the markets 0:01:02.000 --> 0:01:03.800 at the moment. But there have been this desire to 0:01:03.840 --> 0:01:06.880 buy into chip stocks, in particular the open ai valuation 0:01:06.959 --> 0:01:08.840 that we'll dig into, the idea of the contracts that 0:01:08.840 --> 0:01:11.959 they're building with sk Heinex, with Samsung, all of that 0:01:12.000 --> 0:01:14.160 had really helped lift the socks. I'm looking at that 0:01:14.200 --> 0:01:16.559 at one point thirty percent, but really there's other stocks 0:01:16.600 --> 0:01:18.680 that are dragging the overall benchmarks a little bit lower. 0:01:18.840 --> 0:01:18.960 Edd. 0:01:19.160 --> 0:01:21.480 Yeah, the part of the argument is that it's Tesla 0:01:21.520 --> 0:01:22.120 that's doing that. 0:01:22.280 --> 0:01:22.480 Right. 0:01:22.560 --> 0:01:25.959 We had been higher pre market when the delivery numbers broke. 0:01:26.120 --> 0:01:29.600 Four hundred and ninety seven ninety nine evs delivered in 0:01:29.680 --> 0:01:34.720 the third quarter, an astonishing turnaround, a huge beat against consensus. 0:01:34.760 --> 0:01:36.920 But as we've been talking about for a while now, 0:01:37.160 --> 0:01:39.959 they started advertising in the quarter. They started emailing on 0:01:40.000 --> 0:01:42.240 a daily basis, saying, by the way the federal tax 0:01:42.280 --> 0:01:44.640 credit runs out, how big a fact was that that 0:01:44.680 --> 0:01:49.080 it's an isolated quarter of an elevated proportion of sales. 0:01:49.200 --> 0:01:50.520 Let's go to private markets. 0:01:50.600 --> 0:01:54.400 Big piece of reporting from Bloomberg Shering Gafari open AI 0:01:54.800 --> 0:01:58.880 five hundred billion dollar valuation based on employee share sale 0:01:59.120 --> 0:02:02.040 to a really intro seen group of investors. Remember Sharen 0:02:02.080 --> 0:02:04.760 broke this story first on August the sixth, But now 0:02:04.760 --> 0:02:07.720 it's done and there's actually a lot of interesting data 0:02:07.760 --> 0:02:11.800 in the report Caro about who opted to or not 0:02:12.240 --> 0:02:14.880 to participate. If you're an employee that had two years 0:02:14.880 --> 0:02:15.400 of holding the. 0:02:15.360 --> 0:02:20.079 Shares and let's get straight to sharm Gafari extraordinary scoop 0:02:20.120 --> 0:02:22.160 that first came in August. Now we get the real 0:02:22.320 --> 0:02:26.400 details and perhaps those current employees and former employees not 0:02:26.440 --> 0:02:28.840 setting as much as they could have done. 0:02:29.880 --> 0:02:30.399 That's right. 0:02:30.560 --> 0:02:33.800 So you know, again, this is a record valuation for 0:02:33.840 --> 0:02:37.799 Open Eye and for just startups right now, surpassing SpaceX 0:02:38.280 --> 0:02:41.799 as the most highly valued startup. That being said, there 0:02:42.000 --> 0:02:45.880 was more. There could have been more units sold, is 0:02:45.919 --> 0:02:50.880 what we're told. And actually employees shows not to take 0:02:50.960 --> 0:02:54.960 up all of that potential share sale, so you know, 0:02:55.040 --> 0:02:59.160 it could indicate that employees are feeling, you know, the 0:02:59.280 --> 0:03:01.239 optimistic about the future of the company and that the 0:03:02.040 --> 0:03:05.160 valuation could go even higher. But of course this is 0:03:05.480 --> 0:03:07.160 an ongoing story and there are still a lot of 0:03:07.200 --> 0:03:10.120 uncertainties as well in opening Ice future, including its ability 0:03:10.160 --> 0:03:13.160 to go forward with the restructure. 0:03:13.360 --> 0:03:16.280 When there is a tender or a secondary or any 0:03:16.360 --> 0:03:19.440 kind of financial transaction. Sharene there's always a data room, 0:03:19.560 --> 0:03:21.800 just take my word for it. And so I find 0:03:21.800 --> 0:03:25.760 the group of investors here really interesting third parties that 0:03:25.800 --> 0:03:28.359 were able to buy those shares from employees. Just run 0:03:28.440 --> 0:03:31.400 us through the list and any that caught your eye. 0:03:31.919 --> 0:03:34.760 That's right, so many of them were expected. We have Thrive, 0:03:35.240 --> 0:03:38.280 also a former large investor, as well as SoftBank, another 0:03:38.320 --> 0:03:43.160 major partner. We also have Abu, Abu, Dhab, MGX, Dragonear, 0:03:43.320 --> 0:03:46.400 and t Row And you know, MGX is an interesting 0:03:46.400 --> 0:03:49.680 one given we're seeing more money coming in from overseas, 0:03:49.680 --> 0:03:54.200 from the Middle East into AI companies. And you know, 0:03:54.280 --> 0:03:57.120 this is just an ongoing as I find an AI. 0:03:57.320 --> 0:04:00.680 Once one investment closes, it's the beginning of another one. 0:04:00.760 --> 0:04:04.600 So we can expect these sizes to just get bigger 0:04:04.600 --> 0:04:06.760 and bigger in terms of funds going in and sales 0:04:06.760 --> 0:04:08.640 being shares being seld. 0:04:08.680 --> 0:04:11.080 I mean, that's what's extraordinary is the fact that they 0:04:11.200 --> 0:04:15.480 raised money fresh money from SoftBank back in March, and 0:04:15.560 --> 0:04:18.919 the valuation is just spiraled even since then, staring even 0:04:18.960 --> 0:04:21.159 as remind us of the data and the fundamentals. The 0:04:21.160 --> 0:04:25.000 company remains unprofitable and at the moment, revenue is tiny 0:04:25.040 --> 0:04:27.719 in comparison to say a Netflix, which is also worth 0:04:27.720 --> 0:04:29.440 about five hundred billion dollars. 0:04:30.720 --> 0:04:31.160 That's right. 0:04:31.200 --> 0:04:34.159 So while we're seeing the revenue increase rapidly, they have 0:04:34.200 --> 0:04:39.120 something like seven hundred million users. At the same time, 0:04:39.160 --> 0:04:42.279 the company is also unprofitable, and that's because of the 0:04:42.480 --> 0:04:49.560 large cost to fuel basically the development of AI. There's 0:04:49.720 --> 0:04:53.839 huge data compute costs. Here are these unprecedented data centers 0:04:53.839 --> 0:04:56.520 that they're building out, there are researchers. 0:04:56.560 --> 0:04:58.320 All of that takes a lot of money. 0:04:58.320 --> 0:05:01.239 So it's still a highly capital intensive, an unprofitable business, 0:05:01.320 --> 0:05:03.599 even though the revenue is growing at a very fast rate. 0:05:04.120 --> 0:05:07.080 Bembo Sharen Gafari, It's Dev Dave Open Ai Monday, and 0:05:07.120 --> 0:05:08.840 I think we're going to be able to pose questions 0:05:08.839 --> 0:05:10.520 that might give us some of the answers to what's 0:05:10.560 --> 0:05:12.800 really going on top and bottom line at open Ai. 0:05:13.040 --> 0:05:15.000 Let's pivot from the private market side to the public 0:05:15.400 --> 0:05:19.520 public side because open AI's story is driving US equities 0:05:19.920 --> 0:05:23.040 to fresh highs. We've seen some pullback since the show started, 0:05:23.520 --> 0:05:26.560 but generally the idea was that the open ai valuation 0:05:26.720 --> 0:05:30.320 signaled a lot of optimism for AI across those public names. 0:05:30.400 --> 0:05:34.760 Nancy Tengler, CEO and CIO of Lafetengla Investments, joins us 0:05:34.760 --> 0:05:38.320 now for more. There's a lot of life in secondary markets. 0:05:38.440 --> 0:05:43.080 Right sharm was running us through tro price participating in 0:05:43.120 --> 0:05:46.440 that round. I know that this might not be your domain. 0:05:46.839 --> 0:05:49.160 But what did you make of the open ai valuation? 0:05:49.279 --> 0:05:51.039 And if someone came to you and said, Hey, Nancy, 0:05:51.040 --> 0:05:53.760 I'm putting together an SPV or something like that, would 0:05:53.800 --> 0:05:55.440 you try and get in on open ai at this 0:05:55.520 --> 0:05:56.239 private level. 0:05:57.680 --> 0:06:00.560 Yes, we would, yes, and we're actually in the process 0:06:00.760 --> 0:06:03.240 of working with a firm to do just that. But 0:06:03.279 --> 0:06:07.800 we're also interested in you know, SpaceX and XAI and 0:06:07.880 --> 0:06:11.480 many of the other names that are still private, and 0:06:11.520 --> 0:06:15.520 I think for retail investors it's an opportunity and then 0:06:15.520 --> 0:06:18.720 of course for the insiders it provides liquidity at least 0:06:18.720 --> 0:06:19.440 through the provider. 0:06:19.480 --> 0:06:20.960 We're working with one. 0:06:21.160 --> 0:06:23.440 One sec Marguerite, bring up the chart there it is okay, 0:06:23.480 --> 0:06:28.040 so open ai five hundred billion dollar valuation, SpaceX number two, 0:06:28.160 --> 0:06:32.120 four hundred billion, and then I don't see XAI in there, 0:06:32.839 --> 0:06:35.520 but I reported that XAI is raising money at a 0:06:35.560 --> 0:06:38.720 two hundred million dollar valuation. Of those three, what's your 0:06:38.720 --> 0:06:39.520 top priority? 0:06:41.320 --> 0:06:44.760 SpaceX is my greatest interest. I think we know the 0:06:44.800 --> 0:06:47.800 AI game and there's a lot of ways to play it. 0:06:47.800 --> 0:06:48.960 It's not a game, but the. 0:06:48.920 --> 0:06:53.200 Opportunity and I really want to get more exposure to space. 0:06:53.279 --> 0:06:56.680 So we just launched a fund a strategy that is 0:06:56.720 --> 0:07:00.800 focused on all of the above quantum space, nuclear robotics, 0:07:00.839 --> 0:07:04.159 and spaces of particular interest to us. 0:07:04.200 --> 0:07:08.560 Fascinating that you're looking at basically these valuations in the 0:07:08.560 --> 0:07:10.960 private side, as well as, of course all the exposure 0:07:10.960 --> 0:07:13.560 that you build and the public side. Nancy, what draws you? 0:07:13.720 --> 0:07:16.320 Is it just too hard to ignore when you're seeing 0:07:16.360 --> 0:07:18.560 companies staying private for so much longer? 0:07:20.080 --> 0:07:22.720 Yeah, well right, I mean, Caroline, we used to have 0:07:22.720 --> 0:07:25.119 the Wilshire five thousand, and now it's the Wilshair thirty 0:07:25.120 --> 0:07:28.720 five hundred. I think, you know, as an investor, my 0:07:28.880 --> 0:07:30.640 job is to look around and try to figure out 0:07:30.640 --> 0:07:33.960 ways to make money for my clients. When you're going 0:07:34.040 --> 0:07:39.160 through a transformative technological revolution like we are, you get 0:07:39.200 --> 0:07:43.200 these concentrations, you get higher than normal valuations. But that 0:07:43.360 --> 0:07:45.760 is not to say this cannot continue for some time. 0:07:46.080 --> 0:07:47.960 And as you know, I've drawn the analogy to the 0:07:48.040 --> 0:07:51.760 nineteen nineties. I think the technologies we are seeing now 0:07:51.840 --> 0:07:55.120 are much more robust than just eyeballs on a screen, 0:07:55.400 --> 0:07:57.520 which was what we were measuring in the nineties. So 0:07:58.240 --> 0:08:01.679 I'm excited about all the opportunity and really working hard 0:08:01.960 --> 0:08:04.640 to try to figure out ways to gain exposure. Because 0:08:04.640 --> 0:08:07.000 the private markets are open to a very lead group 0:08:07.040 --> 0:08:09.640 of investors, certainly we want to open it up to 0:08:09.680 --> 0:08:11.040 our clients as well. 0:08:11.360 --> 0:08:14.920 Nazie, talk about the fundamentals that you like within these companies, 0:08:15.000 --> 0:08:18.640 because yes, you're saying valuations can continue up into the 0:08:18.720 --> 0:08:21.520 right for foreseeable future. You think it's underlying technology that 0:08:21.560 --> 0:08:23.640 gets us there rather than the market being a rational 0:08:23.760 --> 0:08:25.520 lesson in some sort of hype cycle. 0:08:26.760 --> 0:08:29.680 Absolutely, so, just think back as far as Amazon. I mean, 0:08:29.840 --> 0:08:32.319 that was a valuable lesson for me as a as 0:08:32.320 --> 0:08:35.280 a value investor trained as a you know, buy when 0:08:35.320 --> 0:08:39.120 things go down valuation matters. I could never figure out 0:08:39.120 --> 0:08:43.199 how the company couldn't report earnings and continue to drive forward. 0:08:43.520 --> 0:08:47.480 I think that, and so ultimately we became we participated 0:08:47.559 --> 0:08:50.440 in the name and learned a lesson that during certain 0:08:50.480 --> 0:08:53.240 periods of time, that's what you're going to see, and 0:08:53.280 --> 0:08:55.920 you have to depend on management. You have to be 0:08:56.000 --> 0:08:59.360 focused on the underlying fundamentals. And that's that's our job, 0:08:59.440 --> 0:09:01.000 and that's why we have a team of analysts that 0:09:01.000 --> 0:09:04.000 support me and the other portfolio managers at the firm. 0:09:04.240 --> 0:09:09.080 So we're primarily focused on catalyst forout performance in the 0:09:09.120 --> 0:09:11.400 soft site, we look at all the numbers that everybody 0:09:11.400 --> 0:09:14.520 else looks at on the quantitative side, but qualitatively, we're 0:09:14.559 --> 0:09:18.559 looking for catalyst for out performance and strong management teams, 0:09:18.600 --> 0:09:21.280 and you can measure those over time. It's obviously a 0:09:21.320 --> 0:09:23.840 subjective decision, but we spend a lot. 0:09:23.720 --> 0:09:24.320 Of time on it. 0:09:24.800 --> 0:09:27.040 Nancy, We're going to go very, very deep on Tesla 0:09:27.240 --> 0:09:30.160 in the next segment. But actually, as a team, when 0:09:30.200 --> 0:09:32.920 we were talking about today's show yesterday, your name came up, right, 0:09:32.960 --> 0:09:35.439 you join us all the time. Four hundred and ninety 0:09:35.440 --> 0:09:39.360 seven ninety nine vehicles delivered in the third quarter, a record. 0:09:39.960 --> 0:09:42.920 The stock rose and now it's down almost two percent. 0:09:43.120 --> 0:09:46.080 Just your reaction and to what extent you see the 0:09:46.200 --> 0:09:49.600 expiry of the federal tax credit being the principal factor. 0:09:50.960 --> 0:09:52.760 Well, I do think it's a principal factor. 0:09:52.800 --> 0:09:54.680 And I mean I think there was some strength seen 0:09:54.880 --> 0:09:58.319 in China which was good or at least less deterioration. 0:09:58.880 --> 0:10:01.360 So I think that that is a rebound that we're 0:10:01.360 --> 0:10:05.240 going to be watching and continuing to watch closely. But 0:10:05.679 --> 0:10:08.400 for us, and I've said this to you, historically, we're 0:10:08.440 --> 0:10:11.680 interested in the name because of the energy business, which 0:10:11.679 --> 0:10:13.840 we've been talking about for two years, and I think 0:10:13.880 --> 0:10:17.880 now people are sort of, you know, excited about that business. 0:10:18.280 --> 0:10:21.760 We're interested, obviously, as everyone else is in FSD. They 0:10:21.800 --> 0:10:25.560 seem to be seeing really robust improvements. It may not 0:10:25.640 --> 0:10:28.680 be a linear acceleration. It may just be at one 0:10:28.720 --> 0:10:33.920 point we see that FSD is at the levels we need, 0:10:33.960 --> 0:10:37.000 and then they've got seven billion miles traveled and that 0:10:37.600 --> 0:10:39.800 Dwarf's Weimo. I live in Weimo Land. You know, you 0:10:39.840 --> 0:10:42.880 can't stop at a stoplight in Arizona without seeing four 0:10:42.960 --> 0:10:45.679 or five of them. And Tesla's way ahead on that. 0:10:45.760 --> 0:10:48.280 So they just need to catch up on the technology 0:10:48.280 --> 0:10:51.120 and they will because they have the data. So we're 0:10:51.240 --> 0:10:55.040 very excited about the new model Robotaxi, all of the others, 0:10:55.080 --> 0:10:57.840 and then of course Optimists, which I'm counting on as 0:10:57.840 --> 0:10:59.200 my home health care solution. 0:11:01.320 --> 0:11:03.520 My kids asking me yesterday when we're going to be 0:11:03.520 --> 0:11:05.960 getting a robot in the home, Nanci and I can 0:11:06.000 --> 0:11:07.920 see that we're all waiting on tent to hoax. But 0:11:08.360 --> 0:11:10.920 so too is the comp package for your musk. It's 0:11:11.000 --> 0:11:15.400 tied to real delivereralies of Optimus of Robotaxes twenty million 0:11:15.760 --> 0:11:16.840 evs on the roads. 0:11:16.960 --> 0:11:18.360 Are you going to be voting in favor of that? 0:11:19.480 --> 0:11:19.600 Oh? 0:11:19.679 --> 0:11:24.720 Yes, absolutely, and the Ai you know, the XAI fundraise. 0:11:25.120 --> 0:11:28.600 We would love to see the companies melt together and 0:11:28.840 --> 0:11:32.040 get access to SpaceX and XAI. We'll see. I mean 0:11:32.040 --> 0:11:35.520 that's me talking, not Elon, but we will definitely be 0:11:35.640 --> 0:11:38.680 voting in favor. I love when incentives for the management 0:11:38.720 --> 0:11:42.240 team or the visionary CEO are lined up with me 0:11:42.440 --> 0:11:45.800 and my shareholders. So we're very excited about the future 0:11:45.840 --> 0:11:48.640 of Tesla. And remember it doesn't go straight up. It's 0:11:48.640 --> 0:11:51.680 a volatile name. We were buying at two forty in 0:11:51.760 --> 0:11:55.280 the spring during the tariff tantrum. We will we will 0:11:55.280 --> 0:11:58.480 buy again when stock dips down. But it's a six 0:11:58.520 --> 0:12:02.760 percent holding in our strategy, which is the macrocycle opportunities, 0:12:03.000 --> 0:12:05.079 and then in our growth strategy it's four and a 0:12:05.120 --> 0:12:07.640 half percent holding. So we're committed to the name, and 0:12:08.760 --> 0:12:12.280 you know, we believe, we believe in Elon. Maybe I'll 0:12:12.280 --> 0:12:16.320 get a T shirt made well when the space fun 0:12:16.480 --> 0:12:17.040 goes live. 0:12:17.200 --> 0:12:20.240 When you've got the money coming in for the private 0:12:20.840 --> 0:12:23.200 funds as well, do join us. I mean you're always 0:12:23.240 --> 0:12:24.840 joining us, and we love it and that's a Tangler 0:12:24.920 --> 0:12:28.520 CEO C that's Tangler Investments. Stay well. Meanwhile, coming up, 0:12:28.640 --> 0:12:31.679 we're diving for into Tesla, into the vehicle sales that 0:12:31.800 --> 0:12:34.040 jump to a worldwide record and third quarter. I'm going 0:12:34.080 --> 0:12:36.239 to be going into what's behind this, whether it's sustainable. 0:12:36.280 --> 0:12:37.960 Stay with us. This is Bloomberg Tech. 0:12:45.720 --> 0:12:49.840 US customers help drive Tesla's third quarter sales to a 0:12:49.920 --> 0:12:53.200 record high as buyers rush to take advantage of federal 0:12:53.240 --> 0:12:55.640 tax credits before they expire. I want to get out 0:12:55.679 --> 0:12:57.960 to London and Bloomberg's Automotive. 0:12:58.120 --> 0:12:59.439 Zar Craigtrude out. 0:13:00.360 --> 0:13:03.400 Data is really important here, Okay, third quarter four hundred 0:13:03.400 --> 0:13:08.920 and ninety seven ninety nine vehicles. The expectation was we'd 0:13:08.920 --> 0:13:11.000 see a drop year on year, even if it was 0:13:11.000 --> 0:13:15.240 a sequential improvement. This this is an anomaly. This is 0:13:15.360 --> 0:13:17.880 like something happened in the quarter. Just explain it. 0:13:19.440 --> 0:13:22.360 Yeah, you know, I think this is a surprise if 0:13:22.360 --> 0:13:25.320 you're looking at the consensus and yet if you sort 0:13:25.320 --> 0:13:29.200 of were watching closely to where an estimates were coming in. 0:13:29.240 --> 0:13:31.320 Towards the very end of the month of September, a 0:13:31.360 --> 0:13:34.760 lot of sales side analysts were saying, we think these 0:13:34.800 --> 0:13:36.840 deliveries are going to be much higher than that. I 0:13:36.880 --> 0:13:39.440 think even having said that, you know, this is a 0:13:39.520 --> 0:13:42.800 surprise even for those who are you know, bullish going 0:13:42.840 --> 0:13:45.280 into this print. And you know, you do have to 0:13:45.320 --> 0:13:48.680 hand it to this company to have delivered more vehicles 0:13:48.679 --> 0:13:50.959 than they ever have, even if there are some real 0:13:51.080 --> 0:13:53.920 questions about whether there's some staying power to these numbers. 0:13:54.240 --> 0:13:57.079 Without the seventy five hundred dollars tax credit in the US, 0:13:57.080 --> 0:14:00.439 that's going to be you know, the I guess fourner 0:14:00.480 --> 0:14:04.040 and twenty dollars question on the earnings. 0:14:03.640 --> 0:14:07.640 Call in a few weeks for twenty Craig. I'm interested though, 0:14:07.679 --> 0:14:09.680 like you are, sat in the heart of the UK, 0:14:09.920 --> 0:14:15.400 and indeed Europe has been against Tesla's basically we've seen 0:14:15.480 --> 0:14:18.080 sales destruction over there in large part people blaming the 0:14:18.080 --> 0:14:21.280 politics of Elon Musk. Is that still the sentiment that 0:14:21.280 --> 0:14:23.520 you're seeing. Are you getting any other granular data that 0:14:23.560 --> 0:14:26.160 shows that maybe other regions in the world have liked 0:14:26.400 --> 0:14:28.360 the model wise and the upgrades. 0:14:27.960 --> 0:14:31.280 Of late Yeah, I mean, I think in terms of 0:14:31.360 --> 0:14:33.560 the way things have been trending in Europe, it's been 0:14:33.680 --> 0:14:37.240 very consistent. There's maybe some you know, kind of marginal 0:14:39.280 --> 0:14:42.680 narrowing of the declines over here in Europe, but still 0:14:43.040 --> 0:14:46.880 substantially down in a market that is up substantially, and 0:14:46.920 --> 0:14:50.520 in China you've seen, you know, at best, shipments move 0:14:50.640 --> 0:14:55.920 sideways flat, you know, down by small percentages in a 0:14:56.000 --> 0:15:00.320 market where you know, BYD and Jawmi and you know, 0:15:00.360 --> 0:15:03.440 domestic players really are making a lot of noise. We did, 0:15:03.600 --> 0:15:06.600 you know, see just recently some loss of momentum on 0:15:06.680 --> 0:15:11.120 BYD's part, but that's from a standpoint of really just 0:15:11.200 --> 0:15:15.200 dominating their local markets. So sort of by process of elimination, 0:15:15.480 --> 0:15:18.480 we really, you know, can can sort of come to 0:15:18.520 --> 0:15:22.680 this conclusion that the US is really what drove. 0:15:22.440 --> 0:15:25.440 This result for Tesla. We'll see to what extent. 0:15:25.920 --> 0:15:27.760 You know, Elon Musk is willing to sort of get 0:15:27.760 --> 0:15:30.120 into that, but I think we've already heard from him 0:15:30.200 --> 0:15:32.640 during the last earnings call that you know, this this 0:15:32.680 --> 0:15:34.560 could be a company that's in for a few rough 0:15:34.640 --> 0:15:38.040 quarters as a result of this pullback of support from 0:15:38.080 --> 0:15:38.880 the US government. 0:15:39.120 --> 0:15:42.200 Really most crowdu down. Thank you as always for the 0:15:42.240 --> 0:15:44.960 thorough analysis. Let's stick with Tesla sales. Bring in Stephanie 0:15:45.040 --> 0:15:47.520 Valdez Street. She is the director of Industry insights of 0:15:47.560 --> 0:15:50.440 Coxa Automotive and just the larger picture in the US. 0:15:50.440 --> 0:15:53.080 For Stephanie, it was but earlier in the week that 0:15:53.360 --> 0:15:56.000 we saw Jim Farley, CEO of Ford saying the EV 0:15:56.160 --> 0:15:58.520 market in the US is going to slump by half 0:15:58.840 --> 0:16:01.520 because of the policy is currently being enacted here. And 0:16:01.680 --> 0:16:04.760 meanwhile we see Tesla jump but because of that EV 0:16:05.360 --> 0:16:10.000 tax credit expire, potentially, what is the forward looking analysis 0:16:10.040 --> 0:16:12.000 of yours for US EV sales for Tesla? 0:16:13.040 --> 0:16:15.440 Yeah, definitely, we knew Q three was going to be 0:16:15.480 --> 0:16:18.640 a record quarter, right driven by policy. Right, everyone created 0:16:18.640 --> 0:16:22.000 a sense of urgency, whether it was dealers, OEMs, and 0:16:22.040 --> 0:16:25.760 so consumers reacted. So we're probably going to reach about 0:16:25.800 --> 0:16:28.200 four hundred and ten thousand, probably ten percent market share 0:16:28.240 --> 0:16:31.440 in the US market, and Tesla has definitely taken advantage 0:16:31.440 --> 0:16:34.880 of that, but once again, that was policy driven. Moving 0:16:34.920 --> 0:16:37.400 into Q four, we're going to see a slowdown. However, 0:16:37.800 --> 0:16:40.040 I've already seen and you've probably seen some of the 0:16:40.080 --> 0:16:43.080 manufacturers are going to continue a seventy five hundred dollars 0:16:43.440 --> 0:16:47.560 credit going into Q four. On leasing, Hyundai mentioned they're 0:16:47.600 --> 0:16:50.360 going to reduce their Ionic five by you know, ninety 0:16:50.360 --> 0:16:53.000 eight hundreds and twenty six model and continue to offer 0:16:53.080 --> 0:16:54.120 the seventy five hundred. 0:16:54.480 --> 0:16:58.480 So just very specifically, Stephanie, in this quarter that's just 0:16:58.520 --> 0:17:03.080 been reported. In the Tesla's case, specifically, you see evidence 0:17:03.120 --> 0:17:05.480 that the consumer knew that the federal tax credit was 0:17:05.520 --> 0:17:08.400 running out and so took advantage of that to make 0:17:08.400 --> 0:17:11.520 a decision and either purchase or lease a vehicle. 0:17:12.560 --> 0:17:15.480 Oh definitely, Yeah, Like, I think the consumers became very 0:17:15.480 --> 0:17:18.200 aware of this incentive. If you went to any online 0:17:18.240 --> 0:17:22.600 search website, you saw that, you know, the tax credit 0:17:22.720 --> 0:17:25.680 was there, it was winding down, And I think definitely 0:17:25.680 --> 0:17:29.280 this sense of urgency created consumer reaction, and we're seeing 0:17:29.320 --> 0:17:31.280 that in the data. The numbers are still coming in 0:17:31.320 --> 0:17:33.760 for September in the US, but definitely going to be 0:17:33.840 --> 0:17:37.520 a record quarter and you know, highest market share to date. 0:17:38.400 --> 0:17:40.520 Go There's so many things that I want to poke 0:17:40.560 --> 0:17:44.199 around at. Like what sources inside Tesla told me in 0:17:44.280 --> 0:17:46.439 recent weeks was like, hey, have you been noticing the 0:17:46.520 --> 0:17:49.960 advertising we've been doing on YouTube and Instagram, something that 0:17:50.000 --> 0:17:53.720 Elon Musk historically is completely against. But I'm also like, 0:17:54.160 --> 0:17:57.960 almost five hundred thousand vehicles in the quarter. Do you 0:17:58.000 --> 0:18:00.359 see that as just being a one time thing like 0:18:00.720 --> 0:18:03.680 would this be replicated because it has to if he's 0:18:03.680 --> 0:18:06.440 going to deliver twenty million vehicles over a ten year period. 0:18:06.960 --> 0:18:09.200 That's the math five hundred thousand a quarter. 0:18:10.720 --> 0:18:12.640 Yeah, I think it's going to be challenging, right because 0:18:12.680 --> 0:18:15.000 I think just I think a lot of consumers that 0:18:15.040 --> 0:18:19.520 were considering buying a vehicle EV specifically pulled ahead bought 0:18:19.560 --> 0:18:22.000 it in Q three because of the incentives, and so 0:18:22.080 --> 0:18:24.040 I think just we're going to see that slowdown coming 0:18:24.240 --> 0:18:27.000 Q four and we'll start to see the market stabilize. 0:18:27.040 --> 0:18:30.400 What's that natural demand for evs? And I think it's 0:18:30.440 --> 0:18:33.760 going to be dependent on for Tesla, right once again 0:18:33.880 --> 0:18:36.960 having some product, new product that's going to resonate with consumers. 0:18:37.520 --> 0:18:40.200 And then I think the other challenge for Tesla is 0:18:40.320 --> 0:18:43.359 navigating the changes in the regulatary policy. You know that 0:18:43.440 --> 0:18:46.919 revenue that've gotten from carbon credit will soon disappear, and 0:18:46.960 --> 0:18:49.919 so how do they navigate that? And once again, I 0:18:49.920 --> 0:18:53.240 think they do have some opportunities with energy storage. They 0:18:53.240 --> 0:18:55.960 have their AI ROBOTAXI, so they have stuff in play, 0:18:56.480 --> 0:18:59.600 but it's navigating the short term when demand goes down 0:18:59.720 --> 0:19:02.560 and have I not the product available, new product that 0:19:02.640 --> 0:19:03.760 resonates with customers. 0:19:03.800 --> 0:19:06.040 It's definite go global because we can with you. And 0:19:06.080 --> 0:19:08.680 what's so interesting is while the EV market is getting 0:19:08.720 --> 0:19:11.199 smaller here in the US as a policy, China is 0:19:11.240 --> 0:19:14.880 going up into the right. Europe it's expanding. But Tesla's 0:19:14.880 --> 0:19:17.560 foothold has not been Can they turn that around? 0:19:18.640 --> 0:19:20.600 I think they can if they continue. I mean the 0:19:20.680 --> 0:19:23.560 model why. I think the sixth three row or the 0:19:23.560 --> 0:19:26.000 sixty model why is really doing well in China now. 0:19:26.040 --> 0:19:28.160 I think if they continue to, you know, once again 0:19:28.320 --> 0:19:31.639 have new product. But I think the Chinese OEMs, you 0:19:31.720 --> 0:19:35.080 have voids shell me that are really gaining market share, 0:19:35.400 --> 0:19:38.240 and I think Tesla has stiff competition. So I think 0:19:38.280 --> 0:19:40.960 it's going to come down to having product and being 0:19:41.000 --> 0:19:42.800 able to resonate that with the consumer. 0:19:42.840 --> 0:19:43.600 There definitely. 0:19:43.680 --> 0:19:46.600 Voudez Tred, director of Industry in Sitess Auto Motive, we 0:19:46.640 --> 0:19:47.680 really appreciate having you. 0:19:47.640 --> 0:19:50.040 On the show. CARO like check me on this. 0:19:50.320 --> 0:19:53.200 When we spoke to Robin Denholms, she was crystal clear 0:19:53.280 --> 0:19:55.359 like the twenty million EV sales targets there for a 0:19:55.400 --> 0:19:58.840 reason I went onto the Tesla I our website. All 0:19:58.840 --> 0:20:01.119 of their factories around the world are capable of building 0:20:01.119 --> 0:20:03.359 two million vehicles a year, so he's going to have 0:20:03.400 --> 0:20:05.840 to hit five hundred thousand every quarter. 0:20:06.760 --> 0:20:08.320 Like, am I understanding that? Right? 0:20:08.440 --> 0:20:10.879 Delivery is what I'm interested? Is production pulled back a 0:20:10.920 --> 0:20:14.040 bit as well? And tell us is that about the 0:20:14.160 --> 0:20:16.800 change in the way that they're moving to different vehicles 0:20:16.800 --> 0:20:19.800 and they thinks about increasing improving model wise and model threes. 0:20:20.080 --> 0:20:23.440 The data not in this press release on quarterly deliveries 0:20:23.520 --> 0:20:27.600 is inventory and inventory days and you know, look at that. 0:20:27.680 --> 0:20:29.680 Actually you can you can kind of work out using 0:20:29.680 --> 0:20:33.080 satellite imagery how many vehicles are really hot on a 0:20:33.119 --> 0:20:36.760 lot exactly. But yeah, and then the sheer reaction is 0:20:36.840 --> 0:20:39.400 kind of weird, right, you know. I guess people are 0:20:39.720 --> 0:20:41.480 saying this was a one time thing because of the 0:20:41.480 --> 0:20:42.280 tax credit. 0:20:42.119 --> 0:20:45.919 And the shares have done rather well. We maybe have 0:20:45.960 --> 0:20:53.640 a little bit of a profit taking moment. It's time 0:20:53.680 --> 0:20:56.320 now for talking tech and first up AI language platform 0:20:56.359 --> 0:20:58.880 deep l It is said to be exploring in potential 0:20:59.160 --> 0:21:02.320 us ipo now. According to sources, the Google Translate rival 0:21:02.320 --> 0:21:05.480 based in Europe, has held preliminary discussions with advisors on 0:21:05.520 --> 0:21:08.639 the listing. The possibility of share sales taking place as 0:21:08.640 --> 0:21:12.000 soon as next year. Plus a notorious ransomware group have 0:21:12.119 --> 0:21:15.280 claimed to install in data from a suite of Oracle apps. 0:21:15.400 --> 0:21:15.520 Now. 0:21:15.520 --> 0:21:18.200 The hackers claimed to have reached Oracle's e business suite, 0:21:18.400 --> 0:21:21.640 giving them access to finances, supply chains, and customer relationships. 0:21:21.680 --> 0:21:24.680 In one case, the group has demanded a ransom after 0:21:24.760 --> 0:21:28.520 fifty million dollars and then Musk and X they have 0:21:28.640 --> 0:21:31.600 settled with three former senior Twitter executives who said that 0:21:31.640 --> 0:21:34.199 they were wrongly denied fifty three million dollars worth in 0:21:34.320 --> 0:21:37.560 severance after the takeover. Now the deal comes six weeks 0:21:37.600 --> 0:21:40.520 after Musk and X moved to settle a separate class 0:21:40.560 --> 0:21:43.840 action alleging six thousand laid off workers will own as 0:21:43.880 --> 0:21:47.520 much as five hundred million dollars at least in severance 0:21:48.200 --> 0:21:48.960 ed okay. 0:21:48.960 --> 0:21:52.639 Coming up on the program, Microsoft copes with data center 0:21:52.720 --> 0:21:56.600 shortages through a thirty three billion dollar deal with Nebus Group. 0:21:56.640 --> 0:21:58.639 The idea is that if you can't do it with 0:21:58.680 --> 0:22:02.119 your own gear looked. The Neo Cloud stock down one 0:22:02.160 --> 0:22:04.719 point six percent in the market. Nebuus is up higher. 0:22:05.000 --> 0:22:07.760 But there's also a bigger picture story at play in 0:22:07.760 --> 0:22:10.680 the market today about how optimistic or not we are 0:22:11.200 --> 0:22:21.600 about AI. This is Bloomberg Tech. Welcome back to Bloomberg Tech. 0:22:21.640 --> 0:22:23.760 I'm going to take another look at Tesla. Look, we're 0:22:23.800 --> 0:22:26.600 down when the numbers hit in pre market. We were 0:22:26.680 --> 0:22:30.679 up significantly almost five hundred thousand vehicles delivered in the 0:22:30.720 --> 0:22:33.520 third quarter. But it's a one time anomaly and it's 0:22:33.600 --> 0:22:37.240 driven by consumers, particularly in the United States, flocking to 0:22:37.280 --> 0:22:40.560 Tesla vehicles because of the expiring of a federal tax credit. 0:22:41.200 --> 0:22:43.320 It's also stocked that was up twelve percent year to date, 0:22:43.400 --> 0:22:45.960 had a sort of a rebound from April lows, and 0:22:46.000 --> 0:22:48.160 maybe there's a bit of pulling back here. I don't 0:22:48.200 --> 0:22:50.879 really know, but the consensus seems to be this was 0:22:50.880 --> 0:22:52.960 a one time deal and what was a record corder 0:22:53.040 --> 0:22:55.320 for deliveries, and the future isn't even about. 0:22:55.040 --> 0:22:57.000 Cars, is it. I'm also looking at Microsoft. 0:22:57.080 --> 0:22:59.960 This is kind of interesting because there's some newsflow about Microsoft. 0:23:00.000 --> 0:23:02.320 We're about to get to it, but the early part 0:23:02.320 --> 0:23:05.800 of trading in the session was actually about open AI's 0:23:05.880 --> 0:23:09.399 valuation five hundred billion dollars per Bloomberg reporting in a 0:23:09.440 --> 0:23:12.679 secondary and the simple logic that it's a signal of 0:23:12.720 --> 0:23:15.560 optimism for AI broadly, and it carries a lot of 0:23:15.600 --> 0:23:18.080 names with it, we're now down one point six percent Carroc. 0:23:18.440 --> 0:23:20.680 There's also the neocloud deals and. 0:23:20.640 --> 0:23:22.720 We've got to dig into that because it's a fascinating 0:23:22.760 --> 0:23:26.200 perspective of just the rampant demand for AI compute right 0:23:26.240 --> 0:23:29.000 now across the world. And to break that the story down, 0:23:29.000 --> 0:23:32.160 it's Bloomberg's Brodie Ford who is articulated and found out 0:23:32.800 --> 0:23:35.800 that basically there's been thirty three billion dollars spent by 0:23:35.960 --> 0:23:40.720 Microsoft on neo clouds. You're talking European players like n Scale, Nebeus. 0:23:40.720 --> 0:23:44.160 There's also local player core Weave. Why would the AI 0:23:44.280 --> 0:23:48.960 data center like render outer of that we all know 0:23:49.040 --> 0:23:50.719 for asu're be turning to others. 0:23:51.080 --> 0:23:52.840 Yeah, it's kind of funky, right, It's like if I 0:23:52.880 --> 0:23:54.920 was paying somebody to write stories and I was still 0:23:54.960 --> 0:23:58.760 writing stories. I mean, it's like, essentially, because we have 0:23:58.920 --> 0:24:02.640 huge capacity strains, right, Microsoft needs to get as many 0:24:02.720 --> 0:24:06.440 chips online as it can, both for its customers itself 0:24:06.640 --> 0:24:09.560 and open AI, and it's needing to kind of pull 0:24:09.600 --> 0:24:12.200 every single lever it can, and so it's emerged as 0:24:12.240 --> 0:24:14.800 a major customer for all of these names like the 0:24:14.800 --> 0:24:17.879 core weaves and the nebuuses which have become you know, 0:24:18.080 --> 0:24:19.760 very newsy in recent months. 0:24:20.440 --> 0:24:24.000 It's like managing assets, right, and you know the point 0:24:24.040 --> 0:24:27.600 of a neocloud is it's dedicated to AI, either training 0:24:27.680 --> 0:24:31.040 or influence and you know storage running other software. 0:24:31.160 --> 0:24:32.120 You know, that's a different thing. 0:24:32.359 --> 0:24:34.760 Talls me about the figure of thirty three billion dollars though, like, 0:24:34.880 --> 0:24:37.160 is that news? Is it something that we were able 0:24:37.160 --> 0:24:40.280 to work out? Because Microsoft doesn't disclose it in like 0:24:40.359 --> 0:24:41.800 quarterly earnings or something like that. 0:24:41.920 --> 0:24:45.040 So Microsoft has just kind of disclosed it in piecemeal ways, 0:24:45.160 --> 0:24:47.560 and likely it is going to be much higher than 0:24:47.560 --> 0:24:50.560 that thirty three. What we have been able to discover 0:24:50.800 --> 0:24:53.760 is what this capacity is actually being used for. And 0:24:53.840 --> 0:24:56.600 in many cases it's for Microsoft to build their own 0:24:56.680 --> 0:25:00.600 AI models. And that's surprising because it's there's a larger 0:25:00.600 --> 0:25:03.640 amount of investment in their own internal AI teams than 0:25:03.680 --> 0:25:07.080 many had realized. And the points to them saying, man, 0:25:07.119 --> 0:25:09.800 we better catch up with the open eyes and anthropics 0:25:09.800 --> 0:25:11.639 and have our own models on hand, and we're going 0:25:11.640 --> 0:25:13.000 to use the neo clouds to do it. 0:25:13.040 --> 0:25:15.800 And Mostphah Sulliman, who came from deep Mind, went to 0:25:15.840 --> 0:25:20.000 Microsoft with an inflection being bought in this rather odd way. 0:25:20.359 --> 0:25:23.480 He's the man behind the consumer AI offering. He's I mean, 0:25:23.520 --> 0:25:26.200 you've found out that basically the first larger language model 0:25:26.240 --> 0:25:29.760 they're building internally under him been using care Weave's assets 0:25:29.800 --> 0:25:30.640 over in Oregon. 0:25:30.680 --> 0:25:32.960 I think it is, which is another way of saying 0:25:33.000 --> 0:25:35.160 that're using Nvidia Gear to do it. 0:25:35.280 --> 0:25:39.600 Yeah, using basically via core Weave. But also what's interesting 0:25:39.680 --> 0:25:42.920 is the numbers that you have to orientate yourself around, 0:25:42.960 --> 0:25:45.800 because basically it allows Amy Hood not to have to 0:25:45.800 --> 0:25:46.920 write this all as KPEX. 0:25:47.280 --> 0:25:49.600 That's a really important point, right If you buy a 0:25:49.640 --> 0:25:53.040 bunch of servers, now you have to appreciate them. Now 0:25:53.080 --> 0:25:56.720 it's on your capital expenditures, not you're operating, and investors 0:25:56.760 --> 0:25:58.760 want to see a good balance there. And you know, 0:25:58.840 --> 0:26:01.800 Microsoft's then able to one's surrending from neal clouds to 0:26:01.880 --> 0:26:04.840 say if in five years we actually don't really need 0:26:04.880 --> 0:26:07.800 that many GB three hundreds, would rather use more Vera Rubins, 0:26:08.480 --> 0:26:10.359 bye bye, We don't need a deal with all these 0:26:10.400 --> 0:26:13.040 servers or you don't have necessarily a use for That's 0:26:13.080 --> 0:26:14.600 what it allows them to do. 0:26:14.880 --> 0:26:19.000 Potentially, Brody thrown around your GB three hundreds if there 0:26:18.840 --> 0:26:21.760 are rubebins appreciate the reforming. 0:26:21.440 --> 0:26:23.600 At has he bench pressed them, though that is a 0:26:23.720 --> 0:26:24.760 question for. 0:26:24.760 --> 0:26:28.000 Those uninitiated in video. Once, let me pick up an 0:26:28.160 --> 0:26:30.560 h A DGX, which is an eighty pound We'll get 0:26:30.560 --> 0:26:33.160 to it another time. Let's talk about the investor perspective 0:26:33.160 --> 0:26:36.560 of Brian Kirshman, GQG Partner's portfolio manager joins us Now. 0:26:36.680 --> 0:26:41.720 Gkg's portfolios have recently turned significantly underweight Tech on concerns 0:26:42.119 --> 0:26:45.600 of deteriorating fundamentals, and a part of what Brody was discussing, right. 0:26:45.640 --> 0:26:48.120 I know that we can talk about Microsoft here because 0:26:48.119 --> 0:26:51.719 there's some exposure in the funds, but the idea that 0:26:51.760 --> 0:26:54.080 you rely on the neo clouds so it doesn't show 0:26:54.160 --> 0:26:56.760 up on the balance sheet in the capex. What was 0:26:56.800 --> 0:26:58.520 your sort of reaction to hearing that? 0:27:00.160 --> 0:27:02.440 So, I think what it speaks to from a Microsoft 0:27:02.480 --> 0:27:05.760 perspective is sort of that Capex sort of notion where 0:27:05.840 --> 0:27:08.280 you don't necessarily want to spend all of your capacs 0:27:08.320 --> 0:27:10.880 on sort of an asset that could depreciator. It may 0:27:11.000 --> 0:27:12.960 not necessarily be as advantageous for you on a go 0:27:13.000 --> 0:27:15.080 forward basis. There's a lot of things that are evolving 0:27:15.560 --> 0:27:18.840 really quickly when it comes down to these things, but 0:27:18.880 --> 0:27:20.520 if I were to take a step back and you 0:27:20.560 --> 0:27:22.680 had mentioned sort of we've become a little bit more 0:27:22.960 --> 0:27:26.640 as cautious, so to speak, on sort of these names 0:27:26.640 --> 0:27:29.000 in general and from an AI perspective, And I think 0:27:29.000 --> 0:27:30.920 one of the reasons for that is there's been a 0:27:31.000 --> 0:27:33.080 whole lot of spending on the capack side of things, 0:27:33.119 --> 0:27:35.600 six hundred billion dollars in spending in CAPEX, and really, 0:27:35.600 --> 0:27:37.960 if you take out the infrastructure spending side of this, 0:27:38.320 --> 0:27:40.639 there's only been about thirty billion dollars in revenue that 0:27:40.640 --> 0:27:43.520 have been generated off of this. So our issue here 0:27:43.640 --> 0:27:45.359 is that there is a lack of headroom sort of 0:27:45.440 --> 0:27:47.640 returns that are coming through on a lot of these 0:27:47.640 --> 0:27:50.119 types of businesses over the course of time. Now, Microsoft, 0:27:50.160 --> 0:27:52.920 to its credit, has a software business. They have sort 0:27:52.920 --> 0:27:54.720 of steady earnings. They have been able to deliver some 0:27:54.880 --> 0:27:57.280 decent results over the course of time, But we are 0:27:57.320 --> 0:27:59.600 becoming more skeptical about sort of a lot of things 0:27:59.640 --> 0:28:02.200 on the A side where these returns coming from you, 0:28:02.359 --> 0:28:03.480 the open AI in particular. 0:28:03.560 --> 0:28:05.600 Yeah, I'm sorry, I mean, Brian, we're looking at a 0:28:05.640 --> 0:28:08.359 note that your team put out September the eleventh. You 0:28:08.440 --> 0:28:11.240 rang that alarm bell basically saying, we believe that the 0:28:11.240 --> 0:28:15.280 sector has a significant inflection point and everyone's making a 0:28:15.280 --> 0:28:17.680 one way better as you see it on ai Mania, 0:28:18.320 --> 0:28:21.280 and they're ignoring the alarming fundamentals. For you, the alarming 0:28:21.320 --> 0:28:24.520 fundamentals are that there is a lack of revenue today, 0:28:24.680 --> 0:28:27.239 is it not? Therefore, can you not just make that 0:28:27.240 --> 0:28:30.760 bet that eventually open ai will make three hundred billion 0:28:30.840 --> 0:28:33.480 dollars worth in revenue by twenty thirty. That vindicates the 0:28:33.480 --> 0:28:35.480 amount that they have to spend on all this compute. 0:28:36.040 --> 0:28:38.160 So I think it becomes hard because if you actually 0:28:38.200 --> 0:28:40.680 look at the data behind the set, look at open ai, 0:28:40.800 --> 0:28:42.920 and they have about a two percent conversion rate in 0:28:43.040 --> 0:28:45.080 terms of people that actually want to pay for the service. 0:28:45.160 --> 0:28:47.440 That means ninety eight percent of people that use open 0:28:47.480 --> 0:28:50.200 ai aren't actually paying for it. So now they have 0:28:50.280 --> 0:28:53.680 seven hundred million users globally, about half of those are 0:28:53.680 --> 0:28:56.280 coming from the emerging markets. And what's interesting there if 0:28:56.320 --> 0:28:58.800 you think about the unit economics of sort of cloud 0:28:59.120 --> 0:29:01.280 and I'm sorry, sort of the ai sort of side 0:29:01.320 --> 0:29:04.920 of things, is that this isn't like SaaS. So this 0:29:04.960 --> 0:29:07.360 isn't like a CRM business where you add additional users 0:29:07.360 --> 0:29:09.240 and it all sort of that revenue drops to the 0:29:09.240 --> 0:29:11.800 bottom line. There is a high cost to compute that 0:29:11.800 --> 0:29:13.840 comes along with this, So you need to generate some 0:29:13.880 --> 0:29:16.520 sort of revenues off of each one of these users. Now, 0:29:16.560 --> 0:29:19.760 with half of that user base coming from the emerging markets, 0:29:19.760 --> 0:29:22.880 a significant chunk coming from India. For example, if I 0:29:22.880 --> 0:29:26.120 can get a five G telephone plan within India for 0:29:26.240 --> 0:29:28.040 less than ten dollars a month, do I really think 0:29:28.080 --> 0:29:30.000 that folks are going to pay twenty dollars a month 0:29:30.040 --> 0:29:32.080 for a subscription to chagbt? 0:29:32.240 --> 0:29:33.040 Okay, here we go. 0:29:33.200 --> 0:29:35.440 I like this because we're I think we're looking at 0:29:35.440 --> 0:29:38.320 the same data sets. So the top story today is 0:29:38.400 --> 0:29:41.120 open ai being valued at five hundred billion dollars on 0:29:41.400 --> 0:29:45.480 the latest secondary round. But the big question here is 0:29:45.480 --> 0:29:48.800 is where the future for open ai lays on subscriptions 0:29:48.880 --> 0:29:51.280 or on enterprise. The data point that I look at 0:29:51.360 --> 0:29:52.880 is that it has a user base. You know, it's 0:29:52.920 --> 0:29:55.520 like seven hundred million a monthly, right, Caro, how much 0:29:55.560 --> 0:29:59.640 of that user base is free and then converted to 0:29:59.680 --> 0:30:02.200 being a paying subscribe Because that kind of answers all 0:30:02.200 --> 0:30:02.920 your questions. 0:30:03.960 --> 0:30:06.320 Yeah, So that's exactly the stat that I was referring 0:30:06.360 --> 0:30:08.680 to from what we've seen, only about two percent of 0:30:08.720 --> 0:30:12.520 those folks actually convert over to being paying users, which 0:30:12.560 --> 0:30:15.560 means two percent yes, And so that means that ninety 0:30:15.600 --> 0:30:17.560 eight percent of folks that are using this actually don't 0:30:17.600 --> 0:30:21.280 find enough value to actually sort of spend money on this. Now, 0:30:21.320 --> 0:30:23.040 going back to that India data point that I was 0:30:23.080 --> 0:30:25.760 referencing earlier, if you think about those folks and you 0:30:25.840 --> 0:30:27.840 need to sort of charge call it twenty dollars a 0:30:27.840 --> 0:30:30.320 month for some sort of subscription to make this break 0:30:30.360 --> 0:30:34.200 even profitability or even come close to that. In India, 0:30:34.440 --> 0:30:36.440 you have you know, Barthi Airtel that has a deal 0:30:36.440 --> 0:30:39.600 with Perplexity that offers this service for free across parties. 0:30:40.000 --> 0:30:42.600 So it becomes really hard to see where the monetization 0:30:42.800 --> 0:30:45.120 path comes on a lot of these things over the 0:30:45.120 --> 0:30:47.320 course of time. Now, the other side of this is 0:30:47.360 --> 0:30:50.040 on the enterprise side. So a lot of people say, okay, well, 0:30:50.040 --> 0:30:52.200 maybe it's more of a B to B sales. And 0:30:52.240 --> 0:30:54.240 there's a lot of things that people are investigating or 0:30:54.280 --> 0:30:56.280 looking at from the enterprise side in terms of I 0:30:56.280 --> 0:31:00.600 can use AI to get efficiencies and things like that study. 0:31:00.680 --> 0:31:02.880 I think we all know that by now being quoted 0:31:02.920 --> 0:31:04.840 in terms of the lack of sort of effectiveness, and 0:31:04.880 --> 0:31:07.720 a lot of those We've talked to other tech consultants recently. 0:31:07.800 --> 0:31:10.200 In fact, one one of the big three consultant firms, 0:31:10.480 --> 0:31:12.680 so that eighty five percent of the projects that they're 0:31:12.720 --> 0:31:15.120 working on, so the four hundred projects they've been done 0:31:15.160 --> 0:31:16.840 on a year to day basis, eighty five percent of 0:31:16.880 --> 0:31:18.800 those projects were absolutely useless. 0:31:18.800 --> 0:31:21.160 I said, fifteen percent generates some sort of benefit. 0:31:21.320 --> 0:31:25.600 You're literally sort of echoing exactly the conversation that we 0:31:25.760 --> 0:31:30.640 had with Synthesia's CEO founder yesterday, saying basically, only about 0:31:30.640 --> 0:31:33.360 fifteen percent or even vainly working, and only five percent 0:31:33.400 --> 0:31:36.840 actually working well. But Brian, can you not think that 0:31:37.000 --> 0:31:40.520 eventually they will work? And that's actually more to implementation 0:31:40.680 --> 0:31:44.400 issues rather than actually the fact that they're not adding value. 0:31:45.440 --> 0:31:47.440 So I think you have to show me sort of 0:31:47.480 --> 0:31:50.240 the math and the monetization and then the pathway for 0:31:50.280 --> 0:31:53.040 that working. There's a lot of data organization that needs 0:31:53.040 --> 0:31:54.680 to happen. There's a lot of things that need to 0:31:54.680 --> 0:31:57.040 happen to get to that point. And what we're seeing 0:31:57.040 --> 0:31:59.120 in terms of large language models is we're kind of 0:31:59.120 --> 0:32:01.360 peeking out in terms of what the capabilities are, and 0:32:01.480 --> 0:32:04.160 you saw that sort of transitioning from GPT four to 0:32:04.240 --> 0:32:08.280 GPT five. It's not simply you throw more compute at 0:32:08.320 --> 0:32:10.920 the problem and you solve bigger and more complex large 0:32:11.000 --> 0:32:13.720 language models. There's more post training types of things that 0:32:13.760 --> 0:32:15.640 are coming through, and you're seeing that the models are 0:32:15.680 --> 0:32:18.400 actually peeking out in terms of their effectiveness. And at 0:32:18.440 --> 0:32:22.000 the end of the day, these are extrapolators, so you're 0:32:22.080 --> 0:32:23.960 guessing what the next letter is, what the next word 0:32:24.040 --> 0:32:26.240 is based on a large training set. I can't think 0:32:26.320 --> 0:32:28.440 for you, and it can't sort of, you know, make 0:32:28.480 --> 0:32:30.680 those decisions for you. And I think you're starting to 0:32:30.680 --> 0:32:33.000 see that within the enterprise side of things. Now to 0:32:33.040 --> 0:32:36.320 pivot to an even bigger question here is where has 0:32:36.400 --> 0:32:39.440 this spending actually come through and where are we actually 0:32:39.440 --> 0:32:41.800 seeing the money spent. And that is actually more on 0:32:41.840 --> 0:32:44.680 the hyperscaler side of things, so actually providing the cloud 0:32:44.760 --> 0:32:47.880 services where the data is coming through and where you're 0:32:47.880 --> 0:32:50.000 paying for it on the cloud side of things, and 0:32:50.040 --> 0:32:51.760 this is also fairly concerned. 0:32:51.840 --> 0:32:54.160 I'm sorry to jump in because we'll run out of time. 0:32:54.440 --> 0:32:57.280 That linked to that, including the top line growth discussion, 0:32:57.520 --> 0:33:00.960 what we've asked private Market and public MARKETATIST Week is 0:33:01.000 --> 0:33:03.840 their assessment of the role debt is playing in all 0:33:03.880 --> 0:33:06.920 of these infrastructure projects and how worried or not one 0:33:06.960 --> 0:33:07.920 should be about that. 0:33:09.360 --> 0:33:10.920 Yeah, so debt or nodebt. 0:33:11.480 --> 0:33:13.120 One of the points that I was trying to make 0:33:13.160 --> 0:33:15.840 earlier was that if you look at the pricing dynamics 0:33:15.840 --> 0:33:18.600 within cloud, they're coming under a lot of pressure and 0:33:18.640 --> 0:33:21.120 there's a lot of increased competition that's coming through, and 0:33:21.120 --> 0:33:23.040 I think that's where we're really struggling on a lot 0:33:23.040 --> 0:33:25.440 of these things. Or you have Oracle coming in and 0:33:25.600 --> 0:33:28.840 undercutting price by forty to seventy percent on a lot 0:33:28.880 --> 0:33:31.680 of these enterprise deals, and you're seeing that dragging down 0:33:31.680 --> 0:33:33.440 in terms of the pricing a lot of across a 0:33:33.440 --> 0:33:35.760 lot of the cloud players, including like an AWS and 0:33:35.800 --> 0:33:38.640 things like that. So it becomes a less profitable venture. 0:33:39.240 --> 0:33:41.760 The switching costs are becoming a little bit lower, and 0:33:41.960 --> 0:33:44.440 the economics aren't quite as good. It's becoming more commoditized, 0:33:44.480 --> 0:33:46.400 and that's where we really struggle because there's a whole 0:33:46.440 --> 0:33:49.000 host of investments that's happening in this area and it's 0:33:49.040 --> 0:33:52.160 becoming increasingly commoditized. Similar to the fiber build out, so 0:33:52.200 --> 0:33:55.120 to speak back in the dot com boom and bus cycle. 0:33:55.000 --> 0:33:59.440 The commoditized element of concern, What about the circularity argument 0:33:59.600 --> 0:34:02.040 that we can and that feeds into the debt question 0:34:02.120 --> 0:34:02.560 in many. 0:34:02.440 --> 0:34:04.440 Ways absolutely so. 0:34:04.480 --> 0:34:06.560 Then the other question to ask is, if this is 0:34:06.600 --> 0:34:09.239 such a fantastic investment on a go forward basis, why 0:34:09.320 --> 0:34:12.840 do you have participants in the ecosystem that are actually 0:34:13.040 --> 0:34:15.440 funding their customers and then those cash flows are then 0:34:15.440 --> 0:34:18.359 coming back to them. So in a lot of the 0:34:18.440 --> 0:34:20.640 sort of obscure sort of arrangements and deals as well 0:34:20.680 --> 0:34:24.239 in terms of special purpose vehicles JV structures, where are 0:34:24.280 --> 0:34:26.880 you putting some of these assets into other sort of 0:34:26.880 --> 0:34:29.759 places where you can depreciate the debt or you can 0:34:29.800 --> 0:34:32.880 depreciate the assets within those other vehicles and it's not 0:34:32.920 --> 0:34:36.560 sitting directly on your balance sheet. So this tends to 0:34:36.600 --> 0:34:38.600 happen later in a cycle where you start to see 0:34:38.640 --> 0:34:41.440 a little bit more aggressive accounting coming through, and you 0:34:41.480 --> 0:34:43.319 start to see some of these things that are starting 0:34:43.320 --> 0:34:45.120 to become a little bit more obscure. That has us 0:34:45.200 --> 0:34:48.080 concern that we can't see a true sort of trajectory 0:34:48.200 --> 0:34:50.000 where the economics are coming through. 0:34:50.920 --> 0:34:52.680 That's what has this concern right now and. 0:34:52.640 --> 0:34:55.000 Why you've gone under way. Brian Kirshman. Great to have 0:34:55.080 --> 0:34:57.759 you come back soon. GQG Partners, We thank you for 0:34:57.800 --> 0:35:00.359 coming up. Apple hits pauls on read I think it's 0:35:00.400 --> 0:35:03.560 Vision Pro headsets. We discussed the rivalry with Meta as 0:35:03.560 --> 0:35:04.520 a Bloomberg. 0:35:04.120 --> 0:35:08.880 Tech Apple is said to be ditching plans to revap 0:35:08.960 --> 0:35:11.799 its Vision pro headsets. Instead, the iPhone maker is said 0:35:11.800 --> 0:35:14.880 to be looking to fast track and develop smart glasses 0:35:15.160 --> 0:35:16.600 to rival metas ray bands. 0:35:16.640 --> 0:35:17.560 That's the reporting. 0:35:17.800 --> 0:35:20.400 Let's get to the analysis of Apple's entry into the 0:35:20.440 --> 0:35:24.720 smart glass glasses category of anaag Rana Bloomberg Intelligence senior 0:35:24.760 --> 0:35:26.799 tech analysts. They have a lot on their plate right 0:35:26.800 --> 0:35:29.879 now to shift a new generation of handset of smartphone. 0:35:30.280 --> 0:35:32.960 But have you modeled for the idea that they enter 0:35:33.000 --> 0:35:36.560 a new category, the smart glass, away from augmented in VR. 0:35:37.840 --> 0:35:40.040 No, not yet, Danil. We have to see what it is. 0:35:40.239 --> 0:35:42.359 We have to see what kind of potential reception it's 0:35:42.400 --> 0:35:45.000 going to be. I think Meta has a massive lead here, 0:35:45.280 --> 0:35:47.359 so you know, you just can't sign off just because 0:35:47.400 --> 0:35:49.399 it's an Apple product that it's going to do well. 0:35:50.040 --> 0:35:52.080 I think it's going to have to see the details 0:35:52.120 --> 0:35:54.560 and before we start to model any you know, kind 0:35:54.560 --> 0:35:55.040 of shipment. 0:35:55.440 --> 0:35:56.760 Should they be fast tracking? 0:35:58.520 --> 0:36:00.399 I mean it is, but at the end of the day, 0:36:00.440 --> 0:36:03.000 a lot depends on the models that go into it. 0:36:03.040 --> 0:36:05.480 So AI is a very big on device. AI is 0:36:05.480 --> 0:36:08.520 a very big part of any of these edge products, 0:36:08.560 --> 0:36:10.879 and I think, as we know, Apple has to get 0:36:10.960 --> 0:36:13.799 that thing first right before they can move on to 0:36:13.920 --> 0:36:14.880 some of those features. 0:36:14.960 --> 0:36:18.719 Anarag, I've been reading your latest research wait times, inventory 0:36:18.880 --> 0:36:20.960 handsets of the IFN seventeen generation. 0:36:21.360 --> 0:36:23.439 Your conclusion, yeah, I see. 0:36:23.440 --> 0:36:25.960 I think that's a good part is the base model's 0:36:26.000 --> 0:36:28.319 doing very well, the pro is doing very well, but 0:36:28.400 --> 0:36:30.720 iPhone Air is not at all doing well. And frankly, 0:36:30.760 --> 0:36:33.960 that was the one model we thought could get some traction. 0:36:34.160 --> 0:36:36.600 But it seems like the battery life is an issue there. 0:36:36.760 --> 0:36:38.920 And the second piece could be it's not available in 0:36:39.040 --> 0:36:41.520 China right now and that could be another driving factor. 0:36:42.040 --> 0:36:45.799 Must read always Bloomberg Intelligence. Anna Ragrana, thanks so much 0:36:45.800 --> 0:36:49.040 for spending time with us. Meanwhile, Peloton shares, let's talk 0:36:49.080 --> 0:36:52.600 about half they've performed after yesterday. They continued to be 0:36:52.640 --> 0:36:55.920 on the downside after unveiling revamped hardware software along with 0:36:56.000 --> 0:36:59.120 new higher prices for its equipment and subscriptions. We spoke 0:36:59.160 --> 0:37:02.440 with Peter Stern to CEO yesterday about the new features. 0:37:03.160 --> 0:37:06.600 We are focused both on existing members as well as 0:37:06.960 --> 0:37:10.280 non members. For existing members, they're getting so much today. 0:37:10.560 --> 0:37:13.719 We are introducing for everyone, regardless of when you bought 0:37:13.719 --> 0:37:16.000 your equipment, the benefits of peloton Iq, and that's just 0:37:16.080 --> 0:37:21.239 included in your membership. We are now including a new 0:37:21.280 --> 0:37:23.920 acquisition that we did a company called breath Work, because 0:37:23.920 --> 0:37:26.279 we know the power of breathing and how it can 0:37:26.320 --> 0:37:29.280 help people with stress and anxiety and depression and improve 0:37:29.280 --> 0:37:33.520 heart rate variability and improve blood pressure. So everyone's getting that. 0:37:34.680 --> 0:37:37.200 Major partnerships, for example, one with the Hospital for Special 0:37:37.239 --> 0:37:40.840 Surgery to focus on injury prevention and rehabilitation. All of 0:37:40.880 --> 0:37:43.640 these things happen for existing members, but if you're not 0:37:43.680 --> 0:37:46.600 an existing member, there has never been a better time 0:37:46.640 --> 0:37:49.600 to become one. With the launch of this all new 0:37:49.600 --> 0:37:53.200 equipment lineup the Cross Training Series. Now we're delivering the 0:37:53.200 --> 0:37:57.480 benefits of both cardio and strength because we know that 0:37:57.520 --> 0:38:00.560 adults should be doing a couple of hours at a 0:38:00.600 --> 0:38:04.040 week of cardio and two days of strength training every week. 0:38:04.200 --> 0:38:06.000 You can do that now, all with one piece of 0:38:06.040 --> 0:38:07.640 equipment that makes it super easy. 0:38:08.239 --> 0:38:11.880 It's almost in many ways like cross training is the 0:38:11.880 --> 0:38:14.120 way that which you're sort of identifying it. But if 0:38:14.160 --> 0:38:15.920 I look at the analyst notes and maybe the reaction 0:38:15.960 --> 0:38:17.080 from the stock is because a lot. 0:38:17.040 --> 0:38:17.880 Of this have been maked in. 0:38:18.040 --> 0:38:20.399 You've already given us full year forecasts that in many 0:38:20.440 --> 0:38:23.760 way talk about what churn you're expecting, but what subscriber growth, 0:38:23.960 --> 0:38:26.080 what do you think this will spur in terms of support. 0:38:26.520 --> 0:38:29.719 So we knew, of course as we went into this 0:38:29.800 --> 0:38:31.279 year what we were going to be launching, and we 0:38:31.280 --> 0:38:33.319 were able, as you point out, Caroline, to bake all 0:38:33.320 --> 0:38:36.520 of that into our guidance for the year. But we 0:38:36.600 --> 0:38:40.080 also included in our guidance that as the year progresses, 0:38:40.400 --> 0:38:43.320 we will be inflecting back toward growth. And that's a big, 0:38:43.560 --> 0:38:47.440 big step for us as a company. We had a 0:38:47.520 --> 0:38:49.520 couple of years where we've been down as we have 0:38:50.880 --> 0:38:53.800 regrouped after the pandemic, and we are now in such 0:38:53.800 --> 0:38:57.200 a good place where you see us having reignited our 0:38:57.280 --> 0:39:01.440 innovation engine. Of course, our customer love has never left us. 0:39:01.760 --> 0:39:06.600 Customers really just appreciate what Peloton does for them and 0:39:06.640 --> 0:39:09.520 in particular have their deep connection with our instructors. So 0:39:09.560 --> 0:39:12.120 we're building on that foundation and now feel even more 0:39:12.120 --> 0:39:13.880 confident about our future than ever before. 0:39:14.800 --> 0:39:17.799 That was Peloton's CEO Peter Stern speaking to Caro in 0:39:17.800 --> 0:39:18.759 a big conversation. 0:39:25.000 --> 0:39:27.760 Who will be the next CEO of Disney? The searches 0:39:27.760 --> 0:39:29.520 on and right now the board has focused on four 0:39:29.560 --> 0:39:34.759 internal candidates, including Josh Damarrow, Banna Walden, Alan Bergman, and 0:39:34.840 --> 0:39:37.440 Jimmy and Pataro. Now this is the company is getting 0:39:37.480 --> 0:39:39.680 ready to name a new CEO early next year, but 0:39:40.239 --> 0:39:43.239 it sounds though conversations are starting to steer towards one 0:39:43.280 --> 0:39:48.200 particular name. Lucas Shaw has the details. Why after Bob Chapek, 0:39:48.320 --> 0:39:50.920 would it be deemed that the person in charge of 0:39:51.000 --> 0:39:52.879 experiences and parks is the right pick? 0:39:52.960 --> 0:39:57.320 Lucas well, Look, it's both about personality and the future 0:39:57.360 --> 0:39:59.239 of Disney. You look at where Disney's putting all of 0:39:59.280 --> 0:40:02.040 its money going forward, it's into that parts and experience. 0:40:02.040 --> 0:40:02.560 This division. 0:40:02.640 --> 0:40:04.000 Most of the capex over the. 0:40:03.960 --> 0:40:07.800 Next decade is going there, whether expanding existing parks or 0:40:07.880 --> 0:40:11.200 building new parks. And Josh is also a very different 0:40:11.239 --> 0:40:15.000 personality than Bob Shapek, right, he seems to have more 0:40:15.040 --> 0:40:17.720 facility with other parts of the business. He frankly looks 0:40:17.760 --> 0:40:19.799 like a Disney CEO, as weird as that may be 0:40:19.960 --> 0:40:23.480 to sound, or as weird as that may sound, And 0:40:23.680 --> 0:40:28.080 he is just seen as very well qualified relative to 0:40:28.200 --> 0:40:30.720 the other candidates in the business and a Disney lifer, 0:40:31.520 --> 0:40:34.520 which matters at a company that has a very distinct culture. 0:40:35.239 --> 0:40:37.680 He was around and hanging out in some valley in 0:40:37.760 --> 0:40:41.400 July saw him. The screen Time team gave a detailed 0:40:41.400 --> 0:40:44.399 report about a breakfast that took place Lucas, I think 0:40:44.400 --> 0:40:48.600 it's worth you explaining to the audience what happened, why 0:40:48.640 --> 0:40:49.440 it's significant. 0:40:50.239 --> 0:40:53.759 Well, Bob Iger, the current CEO of Disney, who's been 0:40:53.800 --> 0:40:56.399 at the company for more than two decades, was having 0:40:56.440 --> 0:41:01.040 breakfast with someone who said what many in Hollywood are 0:41:01.120 --> 0:41:03.640 already thinking and saying, which is Josh is going to 0:41:03.640 --> 0:41:06.920 have the job, and said something positive about how he 0:41:06.920 --> 0:41:10.880 would do in it, and Bob reacted very negatively, insisting 0:41:10.960 --> 0:41:14.040 that the board has not made a decision. And there's 0:41:14.040 --> 0:41:17.359 two important things to know about this. One is that 0:41:17.719 --> 0:41:20.360 Disney is a company. Even though everyone in Hollywood believes 0:41:20.600 --> 0:41:23.320 that Josh is now the clear front runner, the company 0:41:23.360 --> 0:41:25.440 is insisting and has made no decisions, and it's not 0:41:25.480 --> 0:41:27.879 going to make any news about this until early next year. 0:41:28.640 --> 0:41:31.440 The other is that Bob Iger, who has been pretty 0:41:31.480 --> 0:41:34.200 involved in succession the last few times, which have not 0:41:34.520 --> 0:41:37.759 processes that have not gone well, is said to be 0:41:37.880 --> 0:41:40.400 more marginalized this time because the board knows they need 0:41:40.480 --> 0:41:41.880 to get it right, and one way to get it 0:41:41.960 --> 0:41:44.760 right is to not have the current CEO as involved 0:41:44.760 --> 0:41:46.560 as he has been. And so I think this is 0:41:46.600 --> 0:41:48.840 just a source of great frustration for Bob, who doesn't 0:41:48.840 --> 0:41:50.479 want to be seen as a lame duck, but also 0:41:50.560 --> 0:41:52.640 doesn't have as much control over this as he has. 0:41:53.760 --> 0:41:56.240 Briefly, Lucas, I just want to switch Gears to Netflix. 0:41:56.239 --> 0:41:58.880 It's down for four straight days now. There is growing 0:41:58.920 --> 0:42:01.799 anxiety about what happening over an X Andino Musk. 0:42:04.480 --> 0:42:07.440 I mean maybe growing anxiety among a few investors. I 0:42:07.480 --> 0:42:10.920 am not detecting that with my sources at the company, 0:42:12.280 --> 0:42:14.040 most of whom would point out that it's a little 0:42:14.080 --> 0:42:16.920 bit ironic for someone who's been a free speech warrior 0:42:17.040 --> 0:42:19.640 to browbeat them for a television show that was released 0:42:19.880 --> 0:42:21.239 like three to five years ago. 0:42:22.080 --> 0:42:24.880 Bloombergs Lucashaw, who leads the screen time team, Thank you 0:42:24.960 --> 0:42:27.959 so much. That does it for this edition of Bloomberg Tech. 0:42:28.280 --> 0:42:32.440 But screen Time returns next week live from Los Angeles. 0:42:32.760 --> 0:42:35.279 You got a tune in conversations with the best of 0:42:35.320 --> 0:42:40.000 the entertainment industry, including Jimmy Kimmel, Caroline Yeah. 0:42:40.400 --> 0:42:42.600 I cannot wait to go. Cannot wait to hear the 0:42:42.600 --> 0:42:45.279 conversations Lucas is going to conduct to many others do not. 0:42:45.360 --> 0:42:48.279 In the meantime, forget to check out our podcast. Find 0:42:48.320 --> 0:42:51.040 it on the terminal as well as online on Apple, Spotify, 0:42:51.280 --> 0:42:54.439 and iHeart. This is Bloomberg Tech from New York.