Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and Ed Lovelow in San Francisco.
Speaker 2: This is Bloomberg Tech.
Speaker 3: Coming up a framework to keep TikTok running in the
Speaker 3: US reached and Donald Trump Warren out the details with
Speaker 3: Shijingping later this week.
Speaker 4: Plus, Elo Musk buys millions of Tesla shares following the
Speaker 4: board's unprecedented pay proposals, and.
Speaker 3: US Energy Secretary Chris Wright joins us later this hour
Speaker 3: to discuss his big European swing, powering the AI revolution
Speaker 3: and much more.
Speaker 4: Meanwhile, big swings still being taken in the market. Ed
Speaker 4: nine straight days of gains on the nasback one hundred
Speaker 4: longest winning streets is November twenty twenty three. We are
Speaker 4: at a new record higher up six ten percent. You're
Speaker 4: looking at the individual stocks underneath this.
Speaker 3: Yeah, it's a very busy start to the week in
Speaker 3: the world of technology. Elon Musk has bought a billion
Speaker 3: dollars of Tesla stock.
Speaker 2: We will discuss it in the show.
Speaker 3: It was on the same day that we spoke to
Speaker 3: the board chair of Tesla Alphabet parent of Google has
Speaker 3: joined the three trillion dollar market cap club and shares
Speaker 3: are at all time high.
Speaker 2: We'll get to that lage one two.
Speaker 3: Then news a framework has been reached between the United
Speaker 3: States and China for a deal that would allow TikTok
Speaker 3: to continue in the United States. The market reaction was
Speaker 3: in shares of Oracle. Let's understand why bringing Bloomberg Senior
Speaker 3: Tech editor Mike Shephard in DC.
Speaker 2: So, we don't know a lot.
Speaker 3: We know a frameworks in place, we know the President
Speaker 3: of the United States. We'll meet with g on Friday.
Speaker 3: They'll discuss it. What else do we need to know, Mike?
Speaker 5: The things that we need to know are pretty much
Speaker 5: that a lot of the details remain unknown at this point.
Speaker 5: We have not heard from the Chinese side yet to
Speaker 5: confirm that they also view that a framework deal is
Speaker 5: in hand that would allow TikTok's US operations at the
Speaker 5: least to stay running. We don't know what the terms
Speaker 5: are of the transaction, what Beijing would be willing to
Speaker 5: hand over, and that includes ed the algorithm. This is
Speaker 5: the recommendation software that is really viewed as a crown
Speaker 5: jewel of TikTok's operations. Globally, and the question has always been,
Speaker 5: would Beijing allow Byte Dance, the parent of TikTok, to
Speaker 5: part with at least some of that recommendation software to
Speaker 5: US based buyers. Unclear whether that's going to happen, and
Speaker 5: unclear whether the terms of this transaction will satisfy the
Speaker 5: national security terms. That the Chinahawks who pioneered the legislation
Speaker 5: in twenty twenty four, are requiring the divestiture by by
Speaker 5: edance of TikTok or a ban, whether they will be
Speaker 5: satisfied by whatever they see a lot. We'll ride on
Speaker 5: this phone call Friday between Xijiping and Donald.
Speaker 4: Trump ed and boy, Mike, is there a lot to
Speaker 4: discuss between Jijingping and President Trump and not just TikTok,
Speaker 4: but in video or another key chip within this whole negotiation.
Speaker 4: And we understand that China is ruling that in Video
Speaker 4: in some way is being deemed well a monopoly or
Speaker 4: at least violating anti monopoly laws. Can you take us
Speaker 4: up to.
Speaker 5: Speed, Well, you know, Cara, the announcement today from China
Speaker 5: from their state competition agency that found in Nvidia violating
Speaker 5: anti monopoly laws in the country. It's no coincidence. The
Speaker 5: relationship between the US and China is very tightly orchestrated
Speaker 5: and stage managed, and this ruling that was announced earlier
Speaker 5: this morning really is a message to the US going
Speaker 5: after the most valuable company in the world, provider of
Speaker 5: the chips that are powering the AI revolution that are
Speaker 5: seen as essential not only for meta platforms and all
Speaker 5: the other US hyperscalers, but a lot of other Chinese
Speaker 5: companies that have favored the H twenty chip, for instance,
Speaker 5: in building their own model that the Trump administration has
Speaker 5: recently given back permission to Invidia to resume sales of
Speaker 5: that chip. But now we are seeing this headwind for
Speaker 5: Nvidia in China, and it will be a test of
Speaker 5: the transatlantic relationship not only for Donald Trump and Chi Jianping,
Speaker 5: but also for Nvidia CEO Jensen Wang, who has cultivated
Speaker 5: ties in Beijing as well, trying to ensure that his
Speaker 5: company still has a sizeable enough footprint there to compete
Speaker 5: with the likes of Huawei.
Speaker 6: So we'll be.
Speaker 5: Again watching this phone call on Friday between Trump and
Speaker 5: she to see what is also said about Nvidia. Remember,
Speaker 5: Donald Trump and Jensen Wong have forged this relationship a
Speaker 5: close relationship, and he is betting on a Nvidia's success
Speaker 5: as part of the administration's broader AI program.
Speaker 4: Carol Mike Shepherd wrapping it all up from Washington. We
Speaker 4: so appreciate it. Let's dig into what the investor sentiment
Speaker 4: is like. Tiffany Wade, senior portfolio manager at Columbia thread Needle,
Speaker 4: joins us in. Tiffany, if I just don't care ultimately,
Speaker 4: and video is down about one and a half persore,
Speaker 4: but it rallied more than six percent last week, and
Speaker 4: you could say it's just a bit of profit taking.
Speaker 4: More broadly, markets that are record high and focused on
Speaker 4: the FED, should they be more worried about this tit
Speaker 4: for tat China US.
Speaker 2: Yeah.
Speaker 7: I think that's a great point. In videos down a
Speaker 7: little bit today. There was also headlines related to China
Speaker 7: looking at some analog semi companies for dumping earlier in
Speaker 7: the weekend. Those docks are barely down as well. So
Speaker 7: I think what that's telling you is that investors think
Speaker 7: that this is more of posturing by China in relation
Speaker 7: to trade talks, and that there's not going to be
Speaker 7: a significant impact on these companies' earnings over the long
Speaker 7: term that it's really just posturing Tiffany.
Speaker 3: Another piece of news this morning the President posting on
Speaker 3: social media that American companies should not be subject to
Speaker 3: quarterly reporting, they should report earnings every six months, and
Speaker 3: the President also acknowledged that would be pending authorization by
Speaker 3: the SEC. But if somebody in the markets, would you
Speaker 3: just react to that piece of news from the President please?
Speaker 8: Yeah?
Speaker 7: I think this is an interesting one, and there's arguments
Speaker 7: on both sides of this. The you know, European regulator
Speaker 7: only requires companies to report every six months, so there
Speaker 7: is a model for this or a framework for this.
Speaker 7: From a company perspective, it likely reduces some of the
Speaker 7: reporting requirements for them, some of the reporting burdens for companies.
Speaker 7: But I think from an investor perspective, what it does
Speaker 7: is reduces volatility for or it reduces visibility for investors
Speaker 7: since we have less information points from companies. Potentially also
Speaker 7: increases the sort of information disparity between investors institutional investors
Speaker 7: in retail investors, and then potentially also increases volatility because
Speaker 7: you have less touch points with the companies, you know,
Speaker 7: perhaps a greater disparity between estimates and actual numbers from
Speaker 7: the company that could increase volatility around reports.
Speaker 3: I love it in the context of data points. At
Speaker 3: the top of the program, we had the headline that
Speaker 3: alphabet has joined the three trillion dollar market cap club, right,
Speaker 3: and if you think about the story at earnings, it
Speaker 3: still was the Hyperscalers sharing with us their capital expenditures
Speaker 3: plans a data set. You know, how would this idea
Speaker 3: impact those kind of soft data points that now the
Speaker 3: market really relies on.
Speaker 7: Yeah, that's interesting for the Hyperscalers and for the company
Speaker 7: as they're developing AI models because they use data. Right,
Speaker 7: the more data, the more powerful the models become. So
Speaker 7: especially with regards to models that are maybe intended for
Speaker 7: a financial analysts or that are intended to help analysts
Speaker 7: with research, less data means less robust models.
Speaker 4: What's interesting is there's always this anxiety that the amount
Speaker 4: of data, the amount of compliance means that it puts
Speaker 4: off companies going public. For last week, we had the
Speaker 4: busiest week for IPOs of a sizable nature in about
Speaker 4: four years, according to some. So what do you make
Speaker 4: of just this weighing up of demand insatiable investor demand
Speaker 4: on one side, with compliance and overbearingness.
Speaker 7: On the other Yeah, I think we've had a tremendous
Speaker 7: year for IPOs. This is certainly in contrast to the
Speaker 7: last three years.
Speaker 2: So the IPO.
Speaker 7: Volume so far through the middle of September this year
Speaker 7: is larger than it was for the full year of
Speaker 7: twenty two, twenty three, and twenty four. So definitely some
Speaker 7: pent up demand from companies that have wanted to go public.
Speaker 7: I think it reflects certainly capital markets being open, you know,
Speaker 7: stocks are at all time highs. Also a little bit
Speaker 7: of improved investor sentiment around the confidence in the economy
Speaker 7: as well as.
Speaker 4: An asset manager should you be buying in. Initially the
Speaker 4: barb was very high. Companies had to be profitable, they
Speaker 4: had to be showing growth on the bottom line as
Speaker 4: well as top line, But of late that seems to
Speaker 4: be pushed out the window too.
Speaker 7: Yeah, you're definitely seeing some of that. The growth stocks
Speaker 7: coming back to market with no earnings or you know,
Speaker 7: earnings in a couple of quarters or free cash flow
Speaker 7: in a couple of quarters now is back certainly a
Speaker 7: good indicator for companies and that growth yer part of
Speaker 7: the economy that investors are willing to invest in. Some
Speaker 7: more speculative companies, but we've also seen IPOs in the
Speaker 7: last couple of weeks in the consumer space. There's another
Speaker 7: one coming this week in the energy space that seems
Speaker 7: to be very well subscribed. So it's not just in tech,
Speaker 7: it's really across the board.
Speaker 3: Tiffany, I want to end the conversation going back to
Speaker 3: where we started today, which is the relationship between the
Speaker 3: US and China. We have a framework for a TikTok deal.
Speaker 3: The President will speak by phone with Ujingping on Friday
Speaker 3: and in video is.
Speaker 2: Caught at the heart of this negotiation.
Speaker 3: How much you expect politics and political volatility to play
Speaker 3: into markets, particularly for technology, in the balance of this year.
Speaker 7: I think technology is going to continue to be sort
Speaker 7: of a hot spot for tariff negotiations, especially with China.
Speaker 7: It's kind of the biggest bargaining chip that both countries
Speaker 7: have with each other. So I don't imagine that the
Speaker 7: volatility around that will will quiet down, and it might
Speaker 7: even continue into future years, depending on how the Supreme
Speaker 7: Court rules on the AVA tariff.
Speaker 3: Yep tiffany Way, if Columbia freadneed or handling every single
Speaker 3: new item of the day that we threw you, thank
Speaker 3: you very much. Now coming up, Elon Musk buys about
Speaker 3: a billion dollars worth of Tesla shares. We're going to
Speaker 3: explain why and also how next.
Speaker 2: This is Bloomberg Tech.
Speaker 4: Elon Musk responded to an unprecedented pay proposal from the
Speaker 4: Tesla board bym buying about one billion dollars worth of shares.
Speaker 4: As you see, we're up six percent on the back
Speaker 4: of that demand. Let's bring in Billium, Meg's Global Auto's
Speaker 4: editor creatredel for more, who is also part of the
Speaker 4: Elon Inc. Team. Just showing boldness, showing a support for
Speaker 4: the company that investors seem to like.
Speaker 9: Here.
Speaker 4: How did he orchestrate it on Friday?
Speaker 10: Yeah, I mean he did it in the midst of
Speaker 10: you and ed talking with Robin Denholm at Tesla, the
Speaker 10: chair of the company. There's clearly a sort of coordinated
Speaker 10: effort on the part of Musk and board to really
Speaker 10: generate excitement about the future of this company at a
Speaker 10: time when there's a lot of reasons to be really concerned.
Speaker 10: Right in terms of the here and now business, we
Speaker 10: continue to see signs of of you know, really difficult
Speaker 10: demand issues. You know, we heard from Denholm that you know,
Speaker 10: the board downplays the extent to which Musk is doing
Speaker 10: damage to this brand with his politics and his involvement
Speaker 10: in that realm. But he then proceeded over the weekend
Speaker 10: to you know, do more politicing that you know, I
Speaker 10: think raises a lot of eyebrows, particularly here in the
Speaker 10: UK right. And so just how much there's really sort
Speaker 10: of meat to this optimism I think is going to
Speaker 10: be the question in the months to come.
Speaker 3: So Caroline and I were explicit with Robin Denholm in
Speaker 3: asking how did you the board define politics or political activity?
Speaker 3: Let's get some of what she She responded.
Speaker 11: With as from a personal perspective in terms of his
Speaker 11: political motivations, etc. Is up to him, I mean, clearly
Speaker 11: from our perspective as a board, we're measuring him on
Speaker 11: results and measuring him on what he does as a
Speaker 11: CEO of TESLA.
Speaker 3: So part of the reason we pose that question is
Speaker 3: because literally in the days since the proxy hit in
Speaker 3: the comp package was proposed, Musk has been very active
Speaker 3: on X talking in particular Craig about UK politics. That
Speaker 3: accelerated over the weekend. What's the latest.
Speaker 10: Yeah, this very far right convicted criminal Tommy Robinson puts
Speaker 10: on this march that I think, you know, did surprise
Speaker 10: a lot of people with how many people showed up.
Speaker 10: Of course, we should note there was a substantial counter
Speaker 10: protests that showed up for this as well. But a
Speaker 10: lot of you know, anti Muslim rhetoric, a lot of
Speaker 10: sort of you know, talk about this idea of civil war,
Speaker 10: which we've heard Musk use.
Speaker 2: That sort of rhetoric before.
Speaker 10: We've you know, on the backs of this heard you know,
Speaker 10: Cure Starmer's spokesmen and others in Westminster really you know,
Speaker 10: express alarm about this sort of charge language that we're
Speaker 10: hearing out of Musk. And you know, I think we're
Speaker 10: also in the US, of course, hearing over the weekend
Speaker 10: from the governor of Utah where Charlie kirk Kirk was
Speaker 10: assassinated last week talk about the sort of evils of
Speaker 10: social media and so on one hand, I think you know,
Speaker 10: from those comments that that Robin denhol Holme gave, it's
Speaker 10: clear that the board is willing to give pretty wide
Speaker 10: latitude in terms of what Musk is up to on
Speaker 10: a political basis. But if they're measuring four results, there
Speaker 10: are indications that this is not helping Tesla's brand.
Speaker 3: Bloomberg's global cars are crazy delh thank you just very
Speaker 3: quickly to buy those billion dollar shares. Musk used a
Speaker 3: revocable trust. Quite a few of you reached out to
Speaker 3: me to ask about that. It means that the trust
Speaker 3: can be changed in Mus's lifetime. It's a pretty normal
Speaker 3: tax focused tool that billionaires in the United States used
Speaker 3: largely for inheritance planning. Another story, last week, Oracle founder
Speaker 3: Larry Ellison momentarily surpassed Elon Musk to become the world's
Speaker 3: richest person. The shares of the tech giant surge starts,
Speaker 3: posting a major increase in bookings, putting Ellison top of
Speaker 3: the list, at least for a day.
Speaker 12: Here's the breakdown. For a few hours last week, the
Speaker 12: richest person in the world wasn't Elon Musk. It was
Speaker 12: Larry Ellison, whose personal fortune suddenly skyrocketed.
Speaker 13: Larry Ellison's net worth soared by eighty nine billion dollars.
Speaker 13: That was the biggest one day game ever recorded on
Speaker 13: the Bloomberg Billionaires Index.
Speaker 12: The cause of this giant leap the company Ellison co founded, Oracle,
Speaker 12: just had a bit of a moment.
Speaker 14: Oracle shares half search pre market after the company posted
Speaker 14: a major increase in bookings and gave an aggressive outlook
Speaker 14: for its cloud infrastructure business.
Speaker 12: Oracle made its name selling database back in the late seventies,
Speaker 12: but in recent years it's become a tech behemoth thanks
Speaker 12: to the key role it plays in cloud computing, and
Speaker 12: it's that demand for cloud services that has driven the
Speaker 12: company's recent stock surge.
Speaker 13: Oracle's cloud computing business is really in demand by AI companies.
Speaker 13: That's essentially allowed it to reframe its narrative around AI
Speaker 13: and to ride the stock boom that's been connected with
Speaker 13: other AI companies.
Speaker 12: On September tenth, it was revealed that Oracle made a
Speaker 12: deal with open Ai, the creators of chat GBT, worth
Speaker 12: three hundred billion dollars.
Speaker 13: And I think a lot of investors and analysts are
Speaker 13: assuming that if it can do deals like that, there
Speaker 13: will be more coming down the line. So if you've
Speaker 13: been paying attention to Oracle, this has actually been a
Speaker 13: while in the making. The last several quarters, this has
Speaker 13: been the story of their earnings.
Speaker 12: After years of sluggish growth. Oracle's revenue is expected to
Speaker 12: take off thanks to the race for AI computing power
Speaker 12: that sent sales in its cloud infrastructure unit Soaring. The
Speaker 12: new deal with open Ai builds on a critical AI
Speaker 12: agreement announced in July.
Speaker 2: This is an non precedent cloud deal.
Speaker 8: I mean, this is likely the largest single cloud deal
Speaker 8: I ever signed.
Speaker 13: Ellison and Oracle are part of a half a trillion
Speaker 13: dollar announcement called Stargate that Trump made several months ago.
Speaker 13: It's a partnership between Oracle, Open Ai, and soft Bank
Speaker 13: and the goals to build data centers for AI across
Speaker 13: the US, and Oracle will be a key computing power
Speaker 13: provider for that initiative.
Speaker 12: Well, the likes of Musk, Jeff Bezos, and Mark Zuckerberg
Speaker 12: have all vied for Donald Trump's attention, Ellison seems to
Speaker 12: have succeeded in nurturing a lasting working relationship with the
Speaker 12: US President.
Speaker 8: I have a high respect for Larry.
Speaker 2: Iis in to somebody I know.
Speaker 5: He's been really a terrific guy for a long time.
Speaker 12: While Oracle's share price has tripled in the three years
Speaker 12: since the arrival of chat GPT, the AI revolution wasn't
Speaker 12: enough to keep Ellison as the world's richest person.
Speaker 13: So this was a brief flirtation with the top spot
Speaker 13: for Larry Ellison. He was surpassed by the end of
Speaker 13: the day Wednesday by Elon Musk, again, who has been
Speaker 13: in first place in the Bloomberg Billionaires Index for much
Speaker 13: of the year. There are questions of how long this
Speaker 13: boom in AI stocks can last. A lot of investors
Speaker 13: have expressed concerns that at least some of these companies
Speaker 13: are overpriced at this point, and there are fears that
Speaker 13: if the economy starts to slow down that we could
Speaker 13: see a pullback in these stocks. And of course, if
Speaker 13: that happens, the billionaires whose wealth is tied to these companies,
Speaker 13: including Larry Elson, will see a concurrent fall in their fortunes.
Speaker 13: Musk stands to potentially leap far, far ahead of all
Speaker 13: of his billionaire peers in the coming years. It was
Speaker 13: announced recently that Tesla's board has approved a one trillion
Speaker 13: dollar pay package from US. He has to meet several
Speaker 13: very ambitious milestones in order to get all of that money,
Speaker 13: but if he does succeed in doing that, it could
Speaker 13: make him the world's first trillionaire. And there's no one
Speaker 13: else who would come anywhere close to that level as.
Speaker 2: Of right now.
Speaker 4: Boy, if we talked about that pay package at length
Speaker 4: time now for Talking Tech and first up Sony Pictures.
Speaker 4: Demon Slayer was the most popular film at the box
Speaker 4: office this weekend, and it is that a new high
Speaker 4: for the Japanese anime genre. It earned Sony million dollars
Speaker 4: in the US and Canada, having already grossed about two
Speaker 4: d eighteen million dollars worldwide going into the weekend. Plus,
Speaker 4: Snap has a new operating system for augmented reality glasses
Speaker 4: singly in the company is getting closer to launching a
Speaker 4: consumer version of the device next year.
Speaker 8: Now.
Speaker 4: Snap OS two point zero includes an overhaul browser and
Speaker 4: updated ar app. Snap is competing with the likes of Meta,
Speaker 4: Apple and Google in Space and Charmi Well, it's aiming
Speaker 4: to take on Apple with its later smartphones coming out
Speaker 4: later this month. Currently, Charmi only has a silver a
Speaker 4: sliver of the premium smartphone market globally, but it is
Speaker 4: well positioned to make games in China, where the release
Speaker 4: of Apple's i'vephone air it's been delayed.
Speaker 3: Okay, I'm going to bring you a story that broke
Speaker 3: late Friday. Apple's Robbie Walker, one of the I film
Speaker 3: Maker's most senior artificial intelligence to executives is leaving the company.
Speaker 2: That's according to sources.
Speaker 3: Walker's exit adds to an exodus of executives and engineers
Speaker 3: from Apple's AI division, going to bring in Bloomberg's Global
Speaker 3: Consumer Tech Managing editor Mark German, the story broke Mark.
Speaker 3: What was this executive's function and role that makes it
Speaker 3: so notable that it's the latest and another departure from Apple.
Speaker 15: Walker was in charge of Siri. It's as simple as that. Yeah,
Speaker 15: he was leading Siri for the last several years, but
Speaker 15: he was demoted out of that role in the spring
Speaker 15: when Apple realized that it would need to delay its
Speaker 15: new Apple Intelligence upgrade for Siri for upwards of a year.
Speaker 15: And after that Walker was removed from his position. His boss,
Speaker 15: John jen Andrea was removed from overseeing both Siri and
Speaker 15: Apple AI robotics teams, and more recently, Walker has been
Speaker 15: overseeing a team known as Answers Knowledge and Information. It's
Speaker 15: called a KI internally. This is a new team spun
Speaker 15: up Underwalker, and this group is responsible for helping build
Speaker 15: a new AI based web search tool that's coming next year,
Speaker 15: designed to compete with both Perplexity people. Going on to
Speaker 15: Perplexity to do searches. Right, You've seen Google traffic go
Speaker 15: down on Apple devices and favor some of these AI apps.
Speaker 15: So Apple wants some skin in that AI web search game.
Speaker 15: So he's been leading that or parts of that, and
Speaker 15: so his departure is quite notable. And more broadly, he's
Speaker 15: on the senior staff of John Jane Andrea. He's one
Speaker 15: of a few people who are leading the company's overall
Speaker 15: AI initiative.
Speaker 4: And of course, time and time again, you many others
Speaker 4: have been talking about how Apple is seeing me behind
Speaker 4: on the general of AI fight, but they're trying to
Speaker 4: remind us all of their prowess when it comes to
Speaker 4: innovation from what things look like feel like. Talk to
Speaker 4: us about the product innovation they've been talking on.
Speaker 15: Yeah, you know, Apple on this last keynote, it didn't
Speaker 15: allow any distractions. It didn't raise prices, it didn't talk
Speaker 15: about tariffs, it didn't talk about shipment delays, it didn't
Speaker 15: talk about AI. It focused just on the core competencies.
Speaker 15: That's hardware, that's design, that's engineering. None of the distractions
Speaker 15: were there. All the focus is on these new devices
Speaker 15: coming out on Friday. Except as you mentioned, the iPhone
Speaker 15: air delay in mainland China, which is a whole other story,
Speaker 15: but for all intentsive purposes, Apple's focusing on what it
Speaker 15: needs to focus on, and it's probably setting up itself
Speaker 15: up for a very solid holiday period.
Speaker 4: Another really well read set of reporting for Markoman. We
Speaker 4: thank you all Things power.
Speaker 2: On Welcome back to Bloomberg Tech.
Speaker 3: Two technology stories is told through the markets. The first alphabet,
Speaker 3: parent of Google, has joined the three trillion dollar market
Speaker 3: cap club, joining Apple, Microsoft, and Nvidia. The market is
Speaker 3: talking about the idea that that antitrust ruling when in
Speaker 3: its favor, not having to divest Chrome is a big catalyst.
Speaker 3: But remember in earnings Google cloud platform really taking market share,
Speaker 3: so there's momentum in that name. But it's a milestone
Speaker 3: in technology history. The other big one, and actually this
Speaker 3: is the most read story pretty much on the Bloomberg
Speaker 3: terminal and on the website, is about BYD. So BYD
Speaker 3: has seen it shares for all about thirty percent over
Speaker 3: the last four months from all time highs that were
Speaker 3: hit earlier in the year.
Speaker 12: And Caroline, what a reverse wind story.
Speaker 3: We started the year talking about how BYD was overtaking
Speaker 3: Tesla in all these markets like Europe, and Asia, not
Speaker 3: just with EV.
Speaker 2: But hybrid as well.
Speaker 3: That chart says things can reverse a little Tesla outperformance
Speaker 3: in recent weeks byd really slumping. Check it out on
Speaker 3: Bloomberg dot com.
Speaker 4: You should and also look like to talk more about
Speaker 4: China and particularly the trade talks with China, because US
Speaker 4: Treasury Secretary Scott Bessen said a framework to keep the
Speaker 4: TikTok app running in the United States has been reached
Speaker 4: that President Trump and she can speak to complete this deal,
Speaker 4: though the blueprint that's pretty unclear. Let's bring in Bloomberg
Speaker 4: social media reporter Alexandra Levigne. What's really interesting, Alex is
Speaker 4: we've been very close before. Remind us of how close
Speaker 4: we came, but like six months ago, well.
Speaker 16: We came extremely close back in the spring. I think
Speaker 16: it was a couple weeks before the deadline had been reached.
Speaker 16: Vice president of Vans said we are very close on
Speaker 16: a high level deal, and then days before President Trump
Speaker 16: basically said we are at the finish line. And then
Speaker 16: within days the entire thing had all but imploded because
Speaker 16: talks over tariffs between US and China had basically escalated.
Speaker 16: So even though it could potentially be an exciting week
Speaker 16: for TikTok and also for the roughly half the country
Speaker 16: that uses the app. There is still a lot that
Speaker 16: we don't know.
Speaker 3: In the time that we've gone to air, there have
Speaker 3: been these headlines from China's side confirming that this frame
Speaker 3: works in place. So we have it from China and
Speaker 3: Treasury Secretary Besson and basically the negotiators for China is
Speaker 3: saying that this is a good framework for both sides,
Speaker 3: but that China won't sacrifice its principles for this TikTok deal.
Speaker 3: I noted earlier in the show that one of the
Speaker 3: reactions to the news was Oracle shares rising remind us like,
Speaker 3: if a deal goes through, who is going to own
Speaker 3: and operate and run TikTok in the United States.
Speaker 16: So, again, the terms of the deal are still unclear. Oracle, though,
Speaker 16: has for many months been floated as one possible leading
Speaker 16: contender here among other US investors. Oracle would make a
Speaker 16: lot of sense potentially because Oracle and TikTok have this
Speaker 16: pre existing relationship. They had been working together in the
Speaker 16: past on something called Project Texas, which was essentially a
Speaker 16: program aimed at helping TikTok secure and separate all of
Speaker 16: TikTok's US user data in the United States and keep
Speaker 16: it basically separate from by Dance's global operations in China.
Speaker 3: Bloomberg's Alexandra Levine, I have a feeling you'll be back
Speaker 3: to talk about a TikTok deal in the days and
Speaker 3: weeks to come.
Speaker 2: Thank you very much.
Speaker 3: Stormtroopers from Style Wars, vlogging with a selfie, Steak Dogs
Speaker 3: hosting a podcast. Such AI generator videos are taking over
Speaker 3: social media subs, shooting for news and other kinds of
Speaker 3: creative content all over our feeds as we enter the
Speaker 3: early stages.
Speaker 2: Of machine generated media.
Speaker 3: The debate has been centering around the impact on Hollywood,
Speaker 3: but what about its impact on social media? Bloomberg BusinessWeek
Speaker 3: editor Bradstone takes a deep dive in an essay. It's
Speaker 3: hard to summarize, but basically, everywhere on social media there's
Speaker 3: AI generated video. There are more tools than ever available
Speaker 3: to do this, and we explain the industries that are
Speaker 3: being hit. But you've penned it in some detail through
Speaker 3: some case studies.
Speaker 17: That's right, and you miss babies being interviewed. That's a
Speaker 17: new one these days. But look, this is our an
Speaker 17: opening essay for our screen Time issue, and I wanted
Speaker 17: to examine you know, what I'm seeing and what a
Speaker 17: lot of my friends are seeing in their social media feeds,
Speaker 17: and it is really incredible.
Speaker 2: A rubacon has been crossed.
Speaker 17: I think back to this summer when you have this
Speaker 17: video of bunnies bouncing on a trampoline everywhere on TikTok,
Speaker 17: everyone are on Instagram. People thought it was real, and
Speaker 17: then there was an examination in the comments how one
Speaker 17: bunny seemed to disappear, and in fact it was a
Speaker 17: creation of a twenty two year old named Andy Kozovski.
Speaker 17: He did it one night when he was bored. The
Speaker 17: key here is Google's tool VO three. What's different about
Speaker 17: VO three is it's not only raised the bar in
Speaker 17: terms of video generation, but it has also raised the
Speaker 17: bar in terms of audio generation. You can enter in
Speaker 17: a few prompts, you can enter in a script, and
Speaker 17: essentially you know the dogs who are talking, the babies
Speaker 17: who are talking. Not only are they saying the written dialogue,
Speaker 17: but their lips are moving. So it's really kind of
Speaker 17: a perfect deep fake.
Speaker 4: The twenty two year old basically made that funny disappear
Speaker 4: on purpose to create the discussion around all of it, Brad.
Speaker 4: But what's so interesting is he's really strong on saying
Speaker 4: this is democratization as we see it. How much is
Speaker 4: it upending actual creators work. How much we see Hollywood
Speaker 4: adopt and embrace this or not this case?
Speaker 17: Maybe, I mean it's really starting on social media. We
Speaker 17: saw what the Hollywood strikes a few years ago, a
Speaker 17: great resistance among the industry around the embrace of AI.
Speaker 17: Now we are seeing that begin to change. I mean recently,
Speaker 17: Amazon or a studio affiliated with Amazon, announced it would
Speaker 17: be finishing orson Wells's film The Magnificent Amberson's using AI
Speaker 17: to recreate some lost scenes. So it's beginning to see
Speaker 17: about But you know, we're looking at the dog.
Speaker 2: Podcast right now.
Speaker 17: That's a Montreal company called dog Pack App. They're trying
Speaker 17: to market themselves and they've got dogs talking.
Speaker 12: It's kind of cringe.
Speaker 17: The humor is very dad joke, but you know people
Speaker 17: are responding to it. You kind of see it everywhere
Speaker 17: on social media right now.
Speaker 4: Who doesn't have a dad joke? Bradstone, brilliant opening piece.
Speaker 4: We're all so excited about screen time, thanks very much. Indeed, meanwhile,
Speaker 4: coming up we can be talking about startup line of sciences.
Speaker 4: It's aiming to turbo charge scientific discovery with guess what
Speaker 4: using AI. Of course we'll talk to the CEO about
Speaker 4: the latest funding round. It's big. There's a series as
Speaker 4: a Bloomberg tech.
Speaker 3: Startup, Lilah Sciences has just closed a two hundred and
Speaker 3: thirty five million dollar Series A funding round. The company
Speaker 3: aims to create what it called scientific super intelligence by
Speaker 3: developing AI that runs thousands of scientific experiments at once.
Speaker 3: Let's bring in Jeff on Molhal's the co founder and
Speaker 3: CEO of Lilah Sciences. That is an eye catching Series
Speaker 3: A and I think the best place to start, Jeff
Speaker 3: is just with the basics of explaining what it is
Speaker 3: Leila wants to do. Because you know, maybe the money
Speaker 3: gives credibility, it gives you the news headline, but there's
Speaker 3: a very specific focus that you have.
Speaker 6: Yes, first of all, thank you for having me. Lyla's
Speaker 6: mission is the reason for this fundraise. Our mission is
Speaker 6: scientific superintelligence to solve humankind's greatest challenges. That is, of
Speaker 6: course a lofty mission, but what it means is that
Speaker 6: we're trying to build a kind of beautiful mind that
Speaker 6: can be a polymath across fields of science, materials, chemistry,
Speaker 6: and life and become super intelligent within them by running
Speaker 6: the scientific method itself.
Speaker 3: Jeff, we became accustomed in twenty twenty four to these
Speaker 3: very large series a's all over the world, actually, particularly
Speaker 3: those focusing on specific models.
Speaker 2: Why do you.
Speaker 3: Need that level of capital from the beginning, What is
Speaker 3: it that requires that capital to be deployed?
Speaker 6: Yeah, First of all, I realize it by saying scientific method,
Speaker 6: I've either given euphoria or PTSD to audience members that
Speaker 6: may have enjoyed or not there most recent science class.
Speaker 6: So what's special about Leilah is the realization that AI
Speaker 6: is now positioned to be able to run every single
Speaker 6: step of the scientific method. Scientific method is the most
Speaker 6: valuable wheel that has ever existed, and the reason for
Speaker 6: scale capital is running the scientific method at scale is
Speaker 6: going to lead to scaling laws for scientific intelligence that
Speaker 6: will go beyond what's possible with scaling laws of the
Speaker 6: Internet and previous human knowledge alone.
Speaker 4: Jeff, It's interesting where you stand. We've just seen the
Speaker 4: interesting investors coming on board and the pension money, the
Speaker 4: big pockets wanting to put money to work, But ultimately
Speaker 4: call me a cynic. We've had an awful lot of
Speaker 4: scientific AI companies coming in offering a new world of
Speaker 4: medical advancement. Why are you different? It seems to be
Speaker 4: something about the.
Speaker 6: Lab so that the mainstay of scientific AI companies are
Speaker 6: sitting in a small niche of science focused on a
Speaker 6: specific application. The insight that led to Lilah is the
Speaker 6: same kind of inside that led to the modern scaling
Speaker 6: laws and ascent of large language models and reasoning capabilities,
Speaker 6: which is that we no longer need to compartmentalized science
Speaker 6: into a whole bunch of tiny subdomains, but instead one
Speaker 6: can build a single kind of mind that can operate
Speaker 6: across an immense diversity of scientific fields and pull new
Speaker 6: knowledge into that single mastery of the way that the
Speaker 6: world around us works. And we believe that this is
Speaker 6: going to open up incredible frontiers across those subdomains and
Speaker 6: between those subdomains in medicine, energy, new climate technologies, and
Speaker 6: a lot more.
Speaker 3: Jeff, we started this conversation by saying that Lilah focuses
Speaker 3: and running thousands of experiments at once using a.
Speaker 2: Single AI model.
Speaker 3: Is this you taking advantage of quantum compute? To do that,
Speaker 3: or accelerated computing or both.
Speaker 6: Primarily the ladder for now. But if you wild a
Speaker 6: beautiful mind for science, it needs a new kind of body.
Speaker 6: And those who are training only on data sets of
Speaker 6: the past are going to hit a ceiling of scientific intelligence.
Speaker 6: And that wheel of the scientific method, of course, has
Speaker 6: been in human minds and hands for all of our existence.
Speaker 6: And we believe the paradigm of what you're seeing behind
Speaker 6: me allows science to ascend into a higher intelligence, higher scale,
Speaker 6: and higher speed. And the implications of that are that
Speaker 6: we're going to be able to pull inventions out of
Speaker 6: the future like has never been possible before.
Speaker 4: Wow, when you start announcing some of the pay customers,
Speaker 4: you've got to come and tell us about it. Jeff
Speaker 4: On Meltson, we appreciate it. Co founder and CEO of
Speaker 4: LAE of Sciences. Now, let's talk about Macado Leebra las
Speaker 4: In America's e commerce and fintech giant, just got a
Speaker 4: new CEO. Ariel Schafstein, will be taking on the rains
Speaker 4: January after Marcus Galprin, who co founded the company led
Speaker 4: it to become the region's most valuable firm. Well, he's
Speaker 4: handing of the reins and let's just hear about what
Speaker 4: the incoming CEO had to say. When asked for his
Speaker 4: vision for the company for the next ten years, he
Speaker 4: spoke in his first exclusive interview with international media as
Speaker 4: incoming CEO.
Speaker 9: I think we've done tremendous things over the first twenty
Speaker 9: six years, but the opportunity for us in the next
Speaker 9: twenty six are equally big or even bigger and what
Speaker 9: we've done in the first era of Marca Olive. I
Speaker 9: think the opportunity to continue increasing the size of our
Speaker 9: ecommerce business through ecommace. Penetration in retail is still very
Speaker 9: big in Latin America. Digital advertising is nascent in Latin
Speaker 9: America and we are convinced that we can drive growth
Speaker 9: in that atmosphere. And last but not least, fintech. Right so,
Speaker 9: financial inclusion in Latin America is still pending, and we
Speaker 9: can beat the probable lists of the process of bringing
Speaker 9: more people into financial services across the region, as we
Speaker 9: have been doing over the last few years.
Speaker 4: The US and the UK will sign an agreement to
Speaker 4: make it quicker for companies to build nuclear power stations,
Speaker 4: but the countries will use safety assessments of reactor designs
Speaker 4: from each other to fast track their checks. The announcement
Speaker 4: comes as President Trump prepares to travel to Britain tomorrow,
Speaker 4: with more economic deals expected to be announced. Already in
Speaker 4: Europe doing deals as US Energy Secretory Chris Wright, exactly
Speaker 4: the person we want to talk to about the opportunity
Speaker 4: of nuclear, particularly in our world of AI. How quickly
Speaker 4: do you think it'll be brought online in the US
Speaker 4: or indeed the UK, because your timeline is fast. It seems.
Speaker 14: It's aggressive, Caroline, And that's President Trump. You know, he
Speaker 14: came in fall in on nigular energy. And we will
Speaker 14: have reactors, these next generation small module reactors critical next year.
Speaker 8: In fact, I'm pretty confident will.
Speaker 14: Have one of them before July fourth of next year,
Speaker 14: and several more.
Speaker 8: During the year.
Speaker 14: Now, it's not the back ended electricity production, but it's
Speaker 14: the whole nuclear system running demonstrating how it will work.
Speaker 14: I think this expedite final permitting and sales and commercialization
Speaker 14: of the reactors.
Speaker 4: It's going to move fast, not just fission but fusion
Speaker 4: as well. Just how optimistic are you there? Eight to
Speaker 4: fifteen years I saw? Is that realistic? And how self
Speaker 4: dependent would that make? The US for what five gigawatts
Speaker 4: designs that we're currently seeing just coming from Oracle and
Speaker 4: Open AI alone super exciting.
Speaker 14: I worked on fusion energy in college forty years ago,
Speaker 14: and we've seen steady progress for the last forty years,
Speaker 14: mostly at the national labs at the Apartment Department of Energy.
Speaker 14: But with AI and commercial fusion companies coming into space now,
Speaker 14: the pace of innovation is faster than ever before. Yeah,
Speaker 14: I believe we will know the commercial pathways to fusion
Speaker 14: during the Trump administration, And as I said, I think
Speaker 14: we'll see commercial electricity from fusion energy on could be
Speaker 14: as fast as eight years, and I'd be very surprised
Speaker 14: if it's more than fifteen coming.
Speaker 8: It's coming and into exciting.
Speaker 3: Secretary, right as you travel across Europe and heads to
Speaker 3: the UK, what kind of instruction has the president given
Speaker 3: you to put these energy deals in the context of
Speaker 3: national security and defense.
Speaker 14: I think the President has talked from his campaign that
Speaker 14: his goal was prosperity at home and peace abroad, and
Speaker 14: he understands instinctively that both of those are intimately.
Speaker 8: Tied to energy.
Speaker 14: You need low cost, abundant, affordable energy at home to
Speaker 14: lower costs for Americans and make businesses thrive. That's the
Speaker 14: same agenda overseas. Here I am in Europe. They're very,
Speaker 14: of course, shocked at what happened with the Russia invasion
Speaker 14: of Ukraine and their energy dependence on Russia.
Speaker 8: Everybody gets that as a mistake.
Speaker 14: They want to switch that dependence from Russia on the
Speaker 14: United States.
Speaker 8: We are bringing them assurances.
Speaker 14: We can continue to wrap up natural gas exports into
Speaker 14: Europe as a safe, secure partner. And of course there's
Speaker 14: huge enthusiasm for American nuclear technology over here. You want
Speaker 14: to get your energy and your key strategic inputs from
Speaker 14: your allies and not your adversaries.
Speaker 3: When President Trump took office, he pledged to cut electricity
Speaker 3: price in half within twelve months.
Speaker 2: For everyday American secretary.
Speaker 3: Right in the time since the president's been in office,
Speaker 3: electricity prices have risen ten percent. Is he still able
Speaker 3: to make good on that election pledge? And how does
Speaker 3: he get that?
Speaker 14: Look, the President is a very ambitious, aim high guy.
Speaker 14: He is absolutely committed to lowering energy prices in the
Speaker 14: United States. We've seen that in gasoline and diesel and
Speaker 14: oil products.
Speaker 8: We're seeing screaming increase in.
Speaker 14: US natural gas production and prices as well not rising
Speaker 14: at all. Electricity grids harder. It's just long time frames.
Speaker 14: Long time frames change that whole system cost. But if
Speaker 14: you look at it on a microscale, the President is
Speaker 14: ready to permit, and we are permitting immediately electric generating
Speaker 14: capacity that will be less than half the cost of
Speaker 14: the stuff that was built under.
Speaker 8: The Biden administration.
Speaker 14: So are we adding new capacity on the grid that's
Speaker 14: less than half the cost of the Biden administration?
Speaker 8: Absolutely, the presence Adam it about that.
Speaker 14: For that to filter in, for the whole grid cost
Speaker 14: to come down imediately, that will take some time.
Speaker 8: For rest assured. We're driving as hard as fast as
Speaker 8: we can.
Speaker 4: Sanctuary, right, You've been driving hard and fast when it
Speaker 4: comes to well updating. It feels like the Department of
Speaker 4: Energies view on what to use when it comes to
Speaker 4: energy sources, and in particular, I'm thinking about the thought leadership.
Speaker 4: Back in July, you put forward what was a report
Speaker 4: it was deemed about the threat of climate change and
Speaker 4: said basically it's exaggerated. Now that working group has been disbanded,
Speaker 4: many have been critical of some of the findings. Do
Speaker 4: you still stand by those findings that were ultimately saying
Speaker 4: a lot of the well climate views were wrong about
Speaker 4: the speed of which the globe is getting hot, or
Speaker 4: at least.
Speaker 14: Actually no dispute at all about temperature and sea level data.
Speaker 14: What we did was just popularize the data that the
Speaker 14: climate alarmis and the politicians don't want to popularize. Ninety
Speaker 14: percent of what's in our Climate report is in the Inner.
Speaker 8: Governmental Panel on Climate Change reports.
Speaker 14: I've been studying this issue for twenty years, so quite
Speaker 14: familiar with it. Five fantastic scientists produced that report, and
Speaker 14: of course environmental groups that don't want in ofst and honest,
Speaker 14: fact based dialogue about climate change sued over silly procedural
Speaker 14: thing about the paperwork for one of the five. And
Speaker 14: instead of fighting this in court, the climate scientists, I'm
Speaker 14: sure they'll still respond to the questions. We've opened a
Speaker 14: real dialogue about climate change, and that's exactly what we
Speaker 14: wanted to do, and I couldn't be happy about it.
Speaker 14: It's funny I go on more and more shows talking
Speaker 14: about climate change and no one wants to ask me
Speaker 14: any questions about climate change.
Speaker 4: I'll keep climate change. I'll ask you, because why did
Speaker 4: your department undertake it in such a way it seemed
Speaker 4: to that the study wasn't following usual procedures like the
Speaker 4: omb's guidelines on science reports.
Speaker 14: Now, this is when you publish a technical paper. When
Speaker 14: you publish the paper, that's when the dialogue starts. We
Speaker 14: wanted to publish This was from no scientists at DOEE,
Speaker 14: although we did.
Speaker 8: Do peer review at DOUE.
Speaker 14: These are five independent scientists that we said, please write
Speaker 14: a report. It just sort of summarizes the big picture
Speaker 14: about climate change, so we can publish it, open it
Speaker 14: up for public comment, and we've got tons of comments.
Speaker 14: Lots of them are silly. But what you can see
Speaker 14: from the substance of the comments we received as there's
Speaker 14: very little disagreement with the data we published on temperature data, sea.
Speaker 8: Level data, and models.
Speaker 14: People are complaining around the edges, or mostly complaining around Yeah, but.
Speaker 8: The future might be different. That's true.
Speaker 14: We don't know the future, but I heard twenty years
Speaker 14: ago that future might be different.
Speaker 8: We're just publishing the real data on c level rise, on.
Speaker 14: Temperature increases, on the effects of kerbon dioxide in the atmosphere,
Speaker 14: which makes the planet creer a little bit wetter. It
Speaker 14: kind of changes a real thing, but it's just been
Speaker 14: so wildly exaggerated and misrepresented, and it's made the kind
Speaker 14: of scientists that go on TV only the most dramatic
Speaker 14: larvest ones that make TV us.
Speaker 8: Most of the honest, sober ones are in the background.
Speaker 8: We're bringing into the.
Speaker 3: Forefront US Energy Secretary Chris Wright, currently in Vienna, but
Speaker 3: continuing through Europe. Thank you very much for joining us
Speaker 3: on Bloomberg Tech. Just a quick update and video shares
Speaker 3: have swung from a pretty notable decline to positive territory.
Speaker 3: You remember the story broke this morning that China's market
Speaker 3: regulator had said that in Video violated anti monopoly laws
Speaker 3: on the twenty twenty acquisition of Melanox. That was a
Speaker 3: bargaining chip pardon the pun, right carrot, in the context
Speaker 3: of these US China talks that are happening, and it's
Speaker 3: a big week in that context.
Speaker 2: It is.
Speaker 4: I remember it was a big week from video stock
Speaker 4: last week. I added about six percent, So maybe there's
Speaker 4: just a been a profit taking earlier today. That does
Speaker 4: it from this edition of Bloomberg Tech. But don't forget
Speaker 4: to check out our podcast. Find it on the terminal
Speaker 4: as well as online on Apple, Spotify, and iHeart. From
Speaker 4: New York and San Francisco. This is Bloomberg Tech,