WEBVTT - Amazon to Buy Globalstar for $11.6 Billion 0:00:02.520 --> 0:00:13.560 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.600 --> 0:00:17.400 from coast to coast with Caroline Hide in New York 0:00:17.680 --> 0:00:20.840 and Eva Low in San Francisco. 0:00:22.440 --> 0:00:25.360 This is Bloomberg Tech coming up. Planerzon agrees to buy 0:00:25.400 --> 0:00:28.840 satellite operate a Global Star in an eleven point six 0:00:28.920 --> 0:00:34.839 billion dollar deal all about Spectrum Plus. We speak exclusively. 0:00:34.159 --> 0:00:38.000 To Lucid's new incoming CEO, Sylvio Napoli, as the company 0:00:38.000 --> 0:00:42.600 announces a fresh injection of capital and deeper Robotaxi push, and. 0:00:42.600 --> 0:00:46.000 The US Treasury Department looks to use anthropics mythos Ai 0:00:46.080 --> 0:00:49.040 model to find vulnerabilities in its own systems. 0:00:49.400 --> 0:00:52.240 First we check out the markets which have actually been 0:00:52.360 --> 0:00:54.960 on a tear ten straight days of gains, and then 0:00:55.000 --> 0:00:56.920 as that one hundred, we haven't seen this sort of 0:00:57.000 --> 0:00:59.800 eleven percent charge. We haven't seen this longer stretch of gains. 0:01:00.080 --> 0:01:02.440 So this is all the way back to twenty twenty one. Today. 0:01:02.480 --> 0:01:04.560 The hope is there that we'll have a second round 0:01:04.600 --> 0:01:06.800 of talks between the US between Iran, maybe it happens 0:01:06.800 --> 0:01:09.760 in Pakistan, and whether we are not managed to put 0:01:09.760 --> 0:01:12.320 an end to this conflict, the market is getting ahead 0:01:12.319 --> 0:01:14.640 of those hopes, and we're currently seeing we'll gain up 0:01:14.680 --> 0:01:17.760 three trillion dollars in terms of market cap over the 0:01:17.760 --> 0:01:18.680 course of those ten days. 0:01:18.720 --> 0:01:21.360 In Okay, we have some M and A and it's 0:01:21.360 --> 0:01:23.440 confirmation of a deal we've been tracking on the show 0:01:23.480 --> 0:01:27.360 for a little while. Amazon to buy Global Star eleven 0:01:27.400 --> 0:01:29.920 point six billion dollar deal. The offer is basically the 0:01:29.959 --> 0:01:32.920 equivalent of ninety dollars per share for Global Star and 0:01:33.000 --> 0:01:36.160 cash whrip just around eighty dollars right now, So there's 0:01:36.160 --> 0:01:38.959 a premium on where the start's currently trading, even with 0:01:39.040 --> 0:01:42.039 that big jump on confirmation of the deal. What's it about. 0:01:42.120 --> 0:01:45.640 It's about director sell from satellite. There's some spectrum in there, 0:01:45.680 --> 0:01:47.800 there's some strategy in there. It's time to get the 0:01:47.840 --> 0:01:48.800 details character it. 0:01:48.880 --> 0:01:50.960 Certainly as we get more of them from Blomberg Senior 0:01:51.000 --> 0:01:53.920 does report to Michelle Davis and just the timeline here, 0:01:54.160 --> 0:01:56.920 because we knew this asset, this Global Star business was 0:01:56.920 --> 0:01:59.640 in play. When did Amazon start getting interested? 0:02:00.200 --> 0:02:03.880 So we've heard that Amazon started getting interested last year 0:02:04.120 --> 0:02:06.280 and Global Star is an asset that's kind of been 0:02:06.360 --> 0:02:09.079 out there for years. People have always talked about it 0:02:09.120 --> 0:02:12.240 as the key kind of the jigsaw piece and the 0:02:12.280 --> 0:02:14.680 puzzle that you know, if you bought it because of 0:02:14.680 --> 0:02:18.200 all of its spectrum, it would help you get up 0:02:18.200 --> 0:02:20.440 to speed and kind of dominate the satellite market. So 0:02:20.480 --> 0:02:23.520 that's what it really is about. It's the spectrum. We 0:02:23.639 --> 0:02:27.079 heard that SpaceX had also looked at this asset last year. 0:02:27.160 --> 0:02:29.640 Of course, Amazon prevailed, and you know, both of these 0:02:30.000 --> 0:02:33.240 players had been racing to dominate the space based connectivity 0:02:33.280 --> 0:02:36.959 market and Starlink is clearly ahead. But what this does 0:02:36.960 --> 0:02:40.160 is it really accelerates for Amazon their plans to be 0:02:40.360 --> 0:02:42.720 a formidable competitor to starlink. 0:02:43.520 --> 0:02:46.480 Michelle a really interesting one for the deal's team. Right, Like, Amazon, 0:02:47.120 --> 0:02:49.640 the tech giant that it is, has never gone that 0:02:49.760 --> 0:02:51.320 big on M and A. But I think I'm right 0:02:51.360 --> 0:02:55.000 in saying that Global Star pending clothes, et cetera would 0:02:55.000 --> 0:02:58.919 be its second biggest ever deal. You know, what do 0:02:59.040 --> 0:03:02.120 we make of an what was the reporting around the offer, 0:03:02.240 --> 0:03:06.160 how competitive was and how Amazon really wanted to go 0:03:06.200 --> 0:03:06.520 for this. 0:03:07.720 --> 0:03:10.480 You're right, I mean, this is Amazon's biggest deal since 0:03:10.520 --> 0:03:14.880 twenty seventeen when it bought Whole Foods. Amazon's been known 0:03:14.960 --> 0:03:17.680 to kind of go after different parts of the market, 0:03:17.720 --> 0:03:21.000 you know, everything from healthcare to movie studios to now 0:03:21.080 --> 0:03:24.800 of course this big spectrum satellite play. And what we 0:03:24.800 --> 0:03:26.840 were hearing is that Global Star was really looking for 0:03:26.880 --> 0:03:29.960 a value above ten billion dollars and the deal that 0:03:30.000 --> 0:03:32.400 was announced today is that a huge premium to you know, 0:03:32.440 --> 0:03:34.320 more than one hundred percent premium to where the stock 0:03:34.400 --> 0:03:38.760 was trading when the leak first hit, you know, last October. 0:03:39.040 --> 0:03:41.520 And so I mean, it clearly shows there aren't that 0:03:41.560 --> 0:03:44.400 many players out there that can afford to spend this 0:03:44.560 --> 0:03:46.960 much money on something like this. But if you want 0:03:46.960 --> 0:03:49.520 to win in this market, that's what it takes, clearly. 0:03:49.720 --> 0:03:51.640 And the advice they've been getting from banks is the 0:03:51.680 --> 0:03:53.760 way in which they structure this not just in terms 0:03:53.800 --> 0:03:56.320 of premium, but in terms of what's on the offer. 0:03:56.680 --> 0:04:00.920 It's either shares or indeed it's straight out cash exactly. 0:04:01.040 --> 0:04:04.000 Yeah, so it's a mix of stock and cash. There's 0:04:04.040 --> 0:04:06.480 a forty percent cap on the amount of cash that 0:04:06.520 --> 0:04:09.760 shareholders can get, and that means we'll get up to 0:04:10.160 --> 0:04:12.600 a cap of ninety dollars per share up to forty percent. 0:04:12.800 --> 0:04:14.960 The way that works is basically, a few days before 0:04:14.960 --> 0:04:17.479 the deal is going to close, shareholders will get to 0:04:17.480 --> 0:04:19.600 elect what they want do they want. You could say 0:04:19.640 --> 0:04:21.320 I want all stock or I want all cash, because 0:04:21.320 --> 0:04:24.240 of course Amazon stock is valuable. But at the end 0:04:24.279 --> 0:04:27.039 of the day, assuming everyone elected all cash, the most 0:04:27.080 --> 0:04:30.200 you could get is forty percent forty percent in cash, 0:04:30.240 --> 0:04:33.400 So it'll be pro rated depending on what folks elect. 0:04:33.800 --> 0:04:37.279 Really appreciate you breaking down the deal structure. You know, 0:04:37.360 --> 0:04:39.000 this has been out there for a couple of weeks 0:04:39.000 --> 0:04:42.800 now it's confirmed. In that period, what was industry saying 0:04:42.839 --> 0:04:46.719 about this, right, Like, the big picture is, oh, Amazon's 0:04:46.760 --> 0:04:48.960 going to go off to Starling, but they're actually if 0:04:49.000 --> 0:04:52.200 you look at the specific details, you know, in terms 0:04:52.200 --> 0:04:55.600 of Loo, they have a lot of existing assets Amazon does. 0:04:56.000 --> 0:04:59.000 What was our read on the strategic play from Amazon. 0:04:59.160 --> 0:05:04.279 So Amazon really needed the Spectrum to really accelerate its 0:05:04.320 --> 0:05:06.720 desire to get into that director device market, which it's 0:05:06.720 --> 0:05:09.400 said today it's going to do in twenty twenty eight. 0:05:09.440 --> 0:05:11.760 And what that'll do is it means, you know, consumers 0:05:11.800 --> 0:05:14.560 will be able to get text, video data, you know, 0:05:14.680 --> 0:05:18.480 voice using satellite service rather than than cell towers kind 0:05:18.480 --> 0:05:22.440 of like a cell tower in space. But it really 0:05:22.440 --> 0:05:24.840 what it does is helps Amazon catch up. They haven't 0:05:24.839 --> 0:05:28.159 been able to launch as many satellites as SpaceX has. 0:05:28.640 --> 0:05:31.520 That's the biggest, one of the biggest reasons why they've 0:05:31.520 --> 0:05:35.080 been behind. But this, this piece is really complimentary to 0:05:35.080 --> 0:05:36.520 everything that they do already have. 0:05:37.720 --> 0:05:40.520 Bloomberg's Michelle Davis with the reporting, Thank you very much. 0:05:40.560 --> 0:05:43.080 So what does Amazon get out of the deal. Let's 0:05:43.080 --> 0:05:46.440 get the reaction. According to Bloomberg Intelligence, the company's eleven 0:05:46.480 --> 0:05:49.159 point six billion dollar agreement gives it a foothold in 0:05:49.200 --> 0:05:52.719 the direct to sell satellite market, along with access to 0:05:52.800 --> 0:05:57.800 valuable spectrum, narrowing the gap with Starlink, an sat space mobile. 0:05:57.839 --> 0:06:01.760 Bloomberg Senior telecom analyst John Butler joins us with his research. 0:06:02.200 --> 0:06:04.560 That's start with the Russian. Now, why do you think 0:06:04.560 --> 0:06:05.480 Amazon's doing this? 0:06:06.440 --> 0:06:10.080 It's all about the spectrum that you know. There's a 0:06:10.120 --> 0:06:13.600 lot of spectrum out there, mostly in use by terrestrial 0:06:13.720 --> 0:06:18.440 wireless carriers. And I stress the word terrestrial because the 0:06:18.520 --> 0:06:23.240 FCC will only allow most of the spectrum now that's 0:06:24.760 --> 0:06:29.520 accorded to wireless services to be used on a terrestrial basis. 0:06:29.560 --> 0:06:33.440 But there is a band called Mobile Satellite Service or 0:06:33.480 --> 0:06:38.599 the MSS bands that allow for direct communication from satellite 0:06:38.680 --> 0:06:42.760 to cell phone and Global Star owns some of that 0:06:42.960 --> 0:06:46.719 valuable L and S band spectrum as it's called. So 0:06:46.839 --> 0:06:49.720 in my mind, this deal is all about the spectrum. 0:06:49.839 --> 0:06:51.800 It's not about the satellites that. 0:06:51.720 --> 0:06:52.360 Are up there. 0:06:53.040 --> 0:06:58.320 GST actually has a pretty thin constellation as satellite networks go. 0:06:58.680 --> 0:07:04.440 So coup for LEO, Amazon's LEO potentially is Apple as well. John, 0:07:04.480 --> 0:07:06.800 So how much does this make this a cementing of that? 0:07:06.960 --> 0:07:09.320 How do we see Amazon really going neck connect now 0:07:09.560 --> 0:07:10.760 with the likes of SpaceX. 0:07:12.520 --> 0:07:15.680 Well, SpaceX has a big lead here at Caroline. I 0:07:15.680 --> 0:07:19.480 mean they you know, they have both broadband and directs 0:07:19.480 --> 0:07:24.680 to sell satellites. Their fleet numbers ten thousand satellites, six 0:07:24.800 --> 0:07:27.800 hundred and fifty of which are direct to sell. So 0:07:27.960 --> 0:07:31.080 Amazon has a lot of catching up to do, both 0:07:31.120 --> 0:07:34.000 on the broadband front and the direct to sell front. 0:07:34.560 --> 0:07:38.680 My suspicion is what they'll do is throw more funds 0:07:38.720 --> 0:07:44.800 into gst's next generation satellite development program. They're developing these 0:07:44.920 --> 0:07:49.840 next generation SATs called I believe C three's. They will 0:07:49.840 --> 0:07:53.760 be higher capacity, they'll be able to offer full wireless 0:07:53.800 --> 0:07:58.880 services for the most part, voice, video, and browsing. And 0:07:59.040 --> 0:08:03.840 so that's the key here is the Amazon has Jopper pockets. 0:08:04.920 --> 0:08:06.880 Let me jump in hre that that is key because 0:08:06.920 --> 0:08:11.480 there is a really big present day distinction between broadband 0:08:11.600 --> 0:08:14.800 and the capabilities that starlink offers you and what you 0:08:14.800 --> 0:08:16.800 can do with direct to sell. Direct to sell is 0:08:16.840 --> 0:08:19.200 text messages right now, right, and not a lot more. 0:08:19.960 --> 0:08:22.120 Could you just go through the basics of that distinction. 0:08:23.720 --> 0:08:28.560 Yes, So broadband satellites offer high capacity links. So if 0:08:28.600 --> 0:08:31.320 you look at starlink, they have one hundred two hundred, 0:08:31.360 --> 0:08:37.120 four hundred megabit plans. The users are static, they're not moving, 0:08:37.400 --> 0:08:41.480 and so those satellites are really designed specifically for that. 0:08:42.080 --> 0:08:44.520 Direct to sell is a different animal. You need to 0:08:44.559 --> 0:08:48.440 go from the satellite directly to a cell phone, and 0:08:48.559 --> 0:08:53.600 cell phones have very very low their signals are very 0:08:53.640 --> 0:08:58.280 low power. So you need specialized satellites with big antennas 0:08:58.360 --> 0:09:02.600 to do that link. And Amazon have the funds to 0:09:02.760 --> 0:09:07.760 develop those next generation satellites. Again, Amazon has a little 0:09:07.840 --> 0:09:10.960 catching up here to do. Ast is also a big 0:09:11.000 --> 0:09:15.120 player in this market. They have very sophisticated satellites. So 0:09:15.400 --> 0:09:17.719 I guess I guess I would say this ed the 0:09:17.840 --> 0:09:20.960 race is only interesting. 0:09:21.720 --> 0:09:24.000 Em and A is certainly helping JOMP start at John 0:09:24.040 --> 0:09:26.560 Butler of Broomberg Intelligence. It's been great to have your 0:09:26.600 --> 0:09:28.920 expertise or analysis today. Let's get a broader take on 0:09:28.960 --> 0:09:31.000 the markets. There certainly a bit of a tech M 0:09:31.040 --> 0:09:33.280 and A field to it till today laid shows with 0:09:33.400 --> 0:09:36.800 us alliance Bensteam please to be welcoming your portfolio manager, 0:09:36.840 --> 0:09:39.319 and we don't want to do individual names. What's notable 0:09:39.400 --> 0:09:41.800 is that there is some desire to be been making purchases 0:09:41.800 --> 0:09:44.439 at this moment despite the volatility in the market. What 0:09:44.559 --> 0:09:46.319 do you make of M and A coming to the foe. 0:09:47.080 --> 0:09:50.520 Well, as there's definitely the race is on, I think 0:09:50.559 --> 0:09:53.080 that's a good description of the current state of the market. 0:09:53.920 --> 0:09:57.440 There are a lot of disruptive changes happening across different 0:09:57.480 --> 0:09:59.880 themes AI is one of them, but there are the 0:10:00.000 --> 0:10:03.440 things as well, and because of that, I feel that 0:10:03.640 --> 0:10:08.360 incumbent in particular, with such strong balance sheet historically, they 0:10:08.440 --> 0:10:11.720 are looking to bolster their war chest because when disrupt 0:10:11.880 --> 0:10:16.480 changes happen at this pace, everybody is spending, and you 0:10:16.480 --> 0:10:18.679 can think of spending as in capex, but M and 0:10:18.760 --> 0:10:21.839 A is another factor that it plays in and then 0:10:21.880 --> 0:10:24.640 sometimes can help you get a lead. But I would 0:10:24.640 --> 0:10:27.800 say the bottom line is the race is on. Everybody's 0:10:27.840 --> 0:10:31.560 playing both offensive and defensive, and that's what makes an 0:10:31.559 --> 0:10:33.559 interesting and exciting market to invest. 0:10:33.720 --> 0:10:36.040 How have you seen the disruption and the race in 0:10:36.120 --> 0:10:38.200 space in defense tech, because that been something you've been 0:10:38.280 --> 0:10:39.360 leaning into with the funds. 0:10:40.000 --> 0:10:43.600 Yes, and for our portfolio, we have been looking at 0:10:43.679 --> 0:10:47.959 disruptive changes across and space, and defense tech is certainly 0:10:48.000 --> 0:10:51.120 one area that we're seeing tremendous amount of capital flowing 0:10:51.160 --> 0:10:54.880 into it. And so while the market has been spending 0:10:54.920 --> 0:10:56.800 a lot of time and AI is certainly part of 0:10:56.800 --> 0:10:59.560 it where a lot of capital has float into its 0:10:59.640 --> 0:11:03.800 space defense tech, it is an area particularly in developed markets, 0:11:04.040 --> 0:11:08.080 we have actually underinvested and perhaps underestimated. So when we 0:11:08.120 --> 0:11:12.080 look for secular changes longer term, these are two buckets 0:11:12.080 --> 0:11:14.160 how we see sustainable growth trends. 0:11:15.360 --> 0:11:17.560 Lebe bear with us. One second, we have some breaking 0:11:17.559 --> 0:11:21.000 news on the Bloomberg terminal. Disney is announcing it's cutting 0:11:21.040 --> 0:11:24.520 one thousand jobs the first wave of layoffs under new 0:11:24.600 --> 0:11:28.120 CEO Josh Tomorrow. The layoffs are company wide, but they 0:11:28.160 --> 0:11:32.119 will fall particularly hard in marketing and the marketing department, 0:11:32.559 --> 0:11:38.640 which has been consolidated under new leadership. An interesting one. 0:11:38.679 --> 0:11:42.120 Disney shares up around a percentage point right now in 0:11:42.200 --> 0:11:45.400 response to this, But one thousand jobs in the context 0:11:45.400 --> 0:11:49.240 of this company Caroline is a relatively big move, but 0:11:49.320 --> 0:11:51.360 it's a company of two hundred and thirty thousand people. 0:11:51.400 --> 0:11:53.120 So we're going to continue tracking that and bring you 0:11:53.160 --> 0:11:55.920 a fuller picture later in the program. What you were 0:11:55.960 --> 0:11:58.320 just saying, Ley is so interesting. When you've come on 0:11:58.320 --> 0:12:01.320 this program, we've been taught looking in the context of 0:12:01.720 --> 0:12:07.439 the AI race on terrestrial based assets. For many people, 0:12:07.600 --> 0:12:10.559 the next wave, particularly you know, running inference at the 0:12:10.720 --> 0:12:13.000 edge is going to be above our heads. And so 0:12:13.040 --> 0:12:15.120 in the context of what we went through Amazon Global 0:12:15.160 --> 0:12:20.000 Star Satellite Communications generally, what is the Alliance Burned Steene 0:12:20.160 --> 0:12:20.920 thesis on that. 0:12:22.000 --> 0:12:25.480 I think from our perspective when we think about it, 0:12:26.360 --> 0:12:28.800 a lot of attention has been clearly focused on the 0:12:28.840 --> 0:12:31.920 GPUs at the core and then on the training side. 0:12:32.280 --> 0:12:34.920 And this year with the rapid adoption of AI as 0:12:34.920 --> 0:12:38.439 what we have seen the token adoption, we see increasing 0:12:38.559 --> 0:12:42.640 evidence the edge is taking off and the data center 0:12:42.760 --> 0:12:47.120 infrastructure as we see it is rapidly evolving. So if 0:12:47.160 --> 0:12:50.800 you look at from an investment perspective, from our fund 0:12:51.280 --> 0:12:55.160 is we're seeing a broadening out. We're seeing the players, 0:12:55.280 --> 0:12:58.520 the incumbent, annual entrants, thinking about what the future of 0:12:58.600 --> 0:13:01.920 infrastructure would look like. We talked about the shortages at 0:13:02.040 --> 0:13:06.160 various levels. We talked about the training, the power, but 0:13:06.320 --> 0:13:10.240 increasingly we're also seeing, just even at the commodity level, 0:13:10.559 --> 0:13:13.760 across the board, we're seeing the adoption and that gives 0:13:13.880 --> 0:13:18.160 us confidence that you know, there is increasing confidence in 0:13:18.200 --> 0:13:21.400 the cap expend the sustainable trend of that, and then 0:13:21.400 --> 0:13:24.160 beyond that in terms of different buckets that will benefit 0:13:24.200 --> 0:13:27.600 from it, which really seem the broadening out of different 0:13:27.600 --> 0:13:30.400 ways that we're trying. Because at the end of the day, 0:13:30.559 --> 0:13:37.200 as incredibly capital intensive, data intensive, bandwidth intensive, so everything 0:13:37.240 --> 0:13:39.120 has to catch up. There are just a lot of 0:13:39.160 --> 0:13:41.120 investment opportunities across the board. 0:13:42.640 --> 0:13:46.640 Have you done an assessment on the viability of the 0:13:46.679 --> 0:13:49.000 economics of orbital data center. 0:13:50.240 --> 0:13:53.800 I think it's probably too early to say that, you know, 0:13:53.880 --> 0:13:57.960 to say definitively viable and not viable. But that said, 0:13:58.320 --> 0:14:01.840 we're just using today's revenue numbers. But this is really 0:14:01.920 --> 0:14:04.800 about the rebuild of the future of infrastructure as we 0:14:04.880 --> 0:14:07.839 see it in the digital world. So I would venture 0:14:07.880 --> 0:14:09.880 to say some of the changes that we have seen 0:14:10.040 --> 0:14:13.839 thus far in terms of how rapidly we have hidden 0:14:13.840 --> 0:14:16.520 an inflection point in the AI adoption. Just look at 0:14:16.520 --> 0:14:19.320 the arrs of some of the new entrants is staggering. 0:14:19.680 --> 0:14:23.360 How fast it's actually ramping. So if we take that 0:14:23.400 --> 0:14:26.400 as a starting point and then we look out, I 0:14:26.440 --> 0:14:30.280 would say, you know, if historically in technology and when 0:14:30.320 --> 0:14:33.680 there is disruptive trends, what we have seen is on 0:14:33.720 --> 0:14:37.200 the short term basis, it looks like everything could be overbuilt. 0:14:37.280 --> 0:14:39.520 But if you actually look out on the long term basis, 0:14:39.800 --> 0:14:43.560 as consumption is taking off, we actually don't have enough 0:14:43.560 --> 0:14:47.320 capacity to address all the needs of the future. And 0:14:47.400 --> 0:14:50.560 in this particular case, it's really about looking out long 0:14:50.680 --> 0:14:53.840 term and having a secular view and then say what 0:14:54.000 --> 0:14:57.120 do we see as the future and then invest accordingly. 0:14:57.520 --> 0:14:59.760 They're not all going to be winners. There will be 0:14:59.800 --> 0:15:03.080 some losers, and so we actually have to be very 0:15:03.080 --> 0:15:04.560 selective as well nimble. 0:15:05.040 --> 0:15:08.120 And therefore how much you divert towards the energy focus 0:15:08.160 --> 0:15:10.880 towards the actual infrastructure rather than just the deployment and 0:15:10.920 --> 0:15:11.640 the applications. 0:15:12.160 --> 0:15:15.720 Yes, we actually just look across the board at all times, right, 0:15:15.760 --> 0:15:18.680 all investments. When we look at it we think about 0:15:18.920 --> 0:15:21.400 you know, I always say we don't look at valuation 0:15:21.720 --> 0:15:25.960 as the first starting point, but ultimately we do look 0:15:25.960 --> 0:15:28.640 at the long term potential and look at how much 0:15:28.720 --> 0:15:31.840 the stocks have been buid up, and then how sustainable 0:15:31.880 --> 0:15:34.280 it is the growth and the margin profit pools that 0:15:34.320 --> 0:15:37.960 we're looking at, and whether that justify the valuation, so 0:15:38.000 --> 0:15:40.360 that all times it does require you to be more 0:15:40.440 --> 0:15:43.120 nimble as an active investor in this kind of environment. 0:15:43.480 --> 0:15:47.000 Wow, we love having you on ed Yeah, Lachue of 0:15:47.000 --> 0:15:49.840 the lines. Bernstein back on Bloomberg Tech. Let's turn to 0:15:49.960 --> 0:15:52.240 some whiplash in the markets and the story we brought 0:15:52.280 --> 0:15:55.800 you yesterday. Nvidia has denied that it's trying to buy 0:15:55.880 --> 0:15:59.680 a large PC company. The report from the website semi 0:15:59.720 --> 0:16:02.920 at sent shares of the two of the world's top 0:16:02.920 --> 0:16:06.640 PC vendors hire yesterday. Dell climbed over six and a 0:16:06.680 --> 0:16:10.440 half percent. Hp was up over five and a half percent. 0:16:10.480 --> 0:16:13.480 That was Monday, after we brought you that original report. Today, 0:16:13.560 --> 0:16:17.040 after that denial, we're back down on both of those 0:16:17.160 --> 0:16:19.960 names a little softer, three percent on Dell, almost two 0:16:20.040 --> 0:16:23.480 percent on HPN. It got people talking. Carro we brought 0:16:23.480 --> 0:16:26.280 you the original report yesterday. We've had the denial. I 0:16:26.320 --> 0:16:28.200 think we just wanted to close the loop on that one. 0:16:28.320 --> 0:16:31.240 Yeah, some MNA on, some MNA off, keeping us up 0:16:31.280 --> 0:16:33.200 to speed. Meanwhile, coming up, we're going to hear from 0:16:33.280 --> 0:16:36.320 Lucid's incoming CEO, Silvio and Nepolie on the ev maker's 0:16:36.360 --> 0:16:39.440 latest injection and capital. That's a lot as through med tech. 0:16:44.120 --> 0:16:44.440 Okay. 0:16:44.480 --> 0:16:47.000 Shares of Lucid are all over the place. Frankly, with 0:16:47.120 --> 0:16:49.560 down almost six percent in the pre market when news 0:16:49.560 --> 0:16:52.520 broke up twelve percent. We opened higher in the main 0:16:52.600 --> 0:16:56.040 Tuesday session. The company has named former Shindler Holding chief 0:16:56.080 --> 0:16:59.240 Sylvia Napoli as its new CEO. The ev maker also 0:16:59.240 --> 0:17:02.120 announced one hundred and fifty million dollars in fresh investment 0:17:02.320 --> 0:17:05.439 from its two largest backers, Uber and Saudi Arabia's public 0:17:05.480 --> 0:17:08.640 Investments Fund. I spoke with Naplie about the new capital 0:17:08.840 --> 0:17:10.560 and the company's path forward. Listen to this. 0:17:12.480 --> 0:17:19.280 Discussing with PIF discussing with a chairman was an absolutely 0:17:19.680 --> 0:17:21.560 vital element of my decision making. 0:17:21.680 --> 0:17:25.000 They were involved in your talks to become CEO of Lucid. 0:17:25.480 --> 0:17:27.680 We have a chairman of the board with RPF of 0:17:27.680 --> 0:17:31.919 course they were, and again equally I was keen to 0:17:32.000 --> 0:17:36.040 understand their engagement. Today's announcement is a confirmation or their 0:17:37.119 --> 0:17:41.800 continued support or they believe in Lucid as a company 0:17:42.280 --> 0:17:46.240 and in his future. And therefore, absolutely the role is 0:17:46.280 --> 0:17:49.360 the absolutely heat and they are a very sub investor 0:17:49.840 --> 0:17:53.840 and it is for Lucid a competitive advantage to be 0:17:53.920 --> 0:17:56.240 able to rely on that type of support in a 0:17:56.320 --> 0:17:57.480 very competitive market. 0:17:57.720 --> 0:18:02.440 What did the PIF, the chairman, but the PIF's representatives 0:18:02.480 --> 0:18:05.320 convey to you on what their priorities are, how they 0:18:05.440 --> 0:18:08.359 see the to do list for you at Lucid. 0:18:08.760 --> 0:18:11.639 Yeah, these type of discussions, of course, where there was 0:18:11.680 --> 0:18:15.440 an element of strategic discussion to be now taken further. 0:18:15.720 --> 0:18:19.600 But the most important element of that was their belief, 0:18:19.720 --> 0:18:22.840 their willingness to bring on board someone like me with 0:18:23.160 --> 0:18:28.040 industrial global experience in turning around in growth in businesses 0:18:28.080 --> 0:18:33.719 around the world, combining industrial manufacturing and service and building 0:18:33.800 --> 0:18:37.480 a brand. And we saw it the same way. 0:18:37.680 --> 0:18:41.719 I've been reading about you as discreetly as possible, been 0:18:41.760 --> 0:18:48.359 asking people about you. You are about discipline, reality in 0:18:48.400 --> 0:18:52.320 your approach cost discipline as well. You look at all 0:18:52.320 --> 0:18:56.040 these projects that Lucid has some of them may or 0:18:56.040 --> 0:19:00.280 may not carry forward right at the investor day, a 0:19:00.320 --> 0:19:04.520 prototype of a specific ROBOTAXI design. How much is that 0:19:04.560 --> 0:19:08.480 on your list to look at the existing plans, existing 0:19:08.520 --> 0:19:13.880 products and say let's just focus on the main thing. 0:19:15.000 --> 0:19:17.399 It's very high on the priority. As a matter of fact, 0:19:17.400 --> 0:19:21.199 I believe deciding what we don't do is going to 0:19:21.200 --> 0:19:23.760 be as important, is no more than deciding on what 0:19:23.840 --> 0:19:27.600 we do. I'm an engineer myself. I can see the 0:19:27.680 --> 0:19:32.800 excitement engineers experience when given a new challenge, and so 0:19:33.000 --> 0:19:37.360 our goal will be to channel that excitement in the 0:19:37.480 --> 0:19:41.040 projects that are the highest return for our shouolders and 0:19:41.080 --> 0:19:42.600 then taking them one other time. 0:19:43.040 --> 0:19:45.000 A lot to talk about with the incoming Lucid CEO 0:19:45.240 --> 0:19:47.680 Sylvie and Apolie Great interview ed mean while coming up 0:19:47.800 --> 0:19:51.040 Oracle It's agreed to purchase fuel cell power from Blue 0:19:51.160 --> 0:19:53.600 Energy as it scales up the AI boom More on 0:19:53.640 --> 0:20:01.840 that next. As a boombag tech and the race to 0:20:01.840 --> 0:20:04.520 build out AI infrastructure, Oracle is moving to solve that 0:20:04.680 --> 0:20:07.679 power pinch by striking another big deal with Blue Energy 0:20:07.680 --> 0:20:10.720 for its fuel cell power remotes. Brodi Ford has more 0:20:10.760 --> 0:20:13.520 the share prices have reacted, Brodie, And what is it 0:20:13.520 --> 0:20:15.720 the blue energy brings that others. 0:20:15.440 --> 0:20:17.600 Don't they bring power? 0:20:18.000 --> 0:20:18.240 Right? 0:20:18.359 --> 0:20:21.600 I mean, that's the big bottleneck right now. You can 0:20:21.640 --> 0:20:24.600 really get the chips, you can get the customers, certainly, 0:20:24.680 --> 0:20:26.760 but in a lot of cases you just can't get 0:20:26.800 --> 0:20:30.280 the power to get these big data centers running. And 0:20:30.359 --> 0:20:33.639 so what Bloom Energy offers is fuel cells. That's going 0:20:33.720 --> 0:20:35.399 to be a lot quicker than if you're going to 0:20:35.480 --> 0:20:38.399 go out and try to buy some gas turbines yourself. 0:20:39.080 --> 0:20:41.760 And you know, Oracle has clearly said that they are 0:20:41.800 --> 0:20:44.760 willing to pay what is likely a pretty hefty premium 0:20:44.800 --> 0:20:48.400 here to get power online quickly. And again they have 0:20:48.520 --> 0:20:51.639 the giant contract with open Ai. They're on the hook 0:20:51.680 --> 0:20:55.320 for a number of gigawatts and within a year or two, 0:20:55.440 --> 0:20:58.680 and so Oracle is ready to give out the cash 0:20:58.720 --> 0:21:01.320 to Bloom to make sure that this plan goes accordingly. 0:21:02.760 --> 0:21:06.000 That scale is interesting because we talk about the hyper 0:21:06.040 --> 0:21:10.440 scalers and then Oracle from a capacity standpoint, we're covering 0:21:10.520 --> 0:21:15.159 great detail the hyper scalers securing long term energy supply. 0:21:15.760 --> 0:21:18.520 Talk a bit more about oracles broader strategy and making 0:21:18.560 --> 0:21:21.160 sure it can power all of that capacity. 0:21:22.480 --> 0:21:26.560 Effectively, Oracle promised something pretty large to open AI. They 0:21:26.600 --> 0:21:30.680 promised four and a half gigawatts and a pretty unprecedented timeline. 0:21:31.119 --> 0:21:34.399 And so yes, they are not a traditional hyperscaler, but 0:21:34.560 --> 0:21:37.560 right now they are building at hyper scale. They have 0:21:37.600 --> 0:21:40.679 a similar deal with a company called Voltagrid, which offers 0:21:40.760 --> 0:21:44.080 kind of gas turbines as a service, and they're paying 0:21:44.080 --> 0:21:45.760 them a lot of money, right, I mean, out of 0:21:45.880 --> 0:21:50.240 their Shackelford campus in Texas, that's one data center. They're 0:21:50.280 --> 0:21:52.959 paying over a billion dollars per year to power it. 0:21:53.400 --> 0:21:55.720 And so we have to imagine this is a similar 0:21:55.840 --> 0:21:58.879 scale deal and that's why the bloom shares are so 0:21:58.960 --> 0:21:59.760 happy this morning. 0:22:01.040 --> 0:22:05.000 Bloomberg's Brodie Ford, thank you very much. All Right, So 0:22:05.320 --> 0:22:07.200 the state of play is that the NAZDAK one hundred, 0:22:07.240 --> 0:22:10.399 it's a very tech heavy index, is up for a 0:22:10.440 --> 0:22:13.120 tenth straight day, best run of gain since twenty twenty one. 0:22:13.280 --> 0:22:17.600 Despite everything that's happening around the world, technology is plowing on. 0:22:18.080 --> 0:22:20.200 Coming up, we're going to speak to Denny Fish, portfolio 0:22:20.240 --> 0:22:25.240 manager on the Global Technology and Innovation Team. Janis Henderson Investors, 0:22:25.240 --> 0:22:28.240