WEBVTT - Special CES Edition 0:00:02.520 --> 0:00:09.280 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.360 --> 0:00:15.080 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.520 --> 0:00:39.720 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.720 --> 0:00:36.960 Live from New York and Las Vegas. This is Bloomberg 0:00:37.000 --> 0:00:40.720 Technology coming up. In Vidia rise to Samsung's rescue after 0:00:40.760 --> 0:00:44.920 disappointing quarterly results. Shares actually bounced back to Jensen Wang 0:00:44.960 --> 0:00:47.519 expresses optimism for the memory maker. Plus, we sit down 0:00:47.520 --> 0:00:50.880 with mobili at CS to discuss the future of autonomous 0:00:50.920 --> 0:00:53.480 driving in the US and our conversation with the CEO 0:00:53.479 --> 0:00:56.600 of Sirius XM on the company's focus on growth and 0:00:56.680 --> 0:00:59.960 leveraging AI. Meanwhile, Jenson Wang makes impact on all of 0:01:00.160 --> 0:01:02.880 quantum names that have rallied so hard in twenty twenty four. 0:01:02.880 --> 0:01:04.560 They're off to a bad start in twenty and twenty five, 0:01:04.560 --> 0:01:06.040 off by thirty three percent. 0:01:05.800 --> 0:01:07.440 Of iron Q for all the others. 0:01:07.480 --> 0:01:09.640 On the downside, just one saying, look, it's going to 0:01:09.680 --> 0:01:12.640 take fifteen to thirty years before we get some significantly 0:01:12.760 --> 0:01:15.000 useful quantum computing outcomes. 0:01:15.319 --> 0:01:17.040 So pouring cold water and some of that optimism. 0:01:17.080 --> 0:01:20.240 But on the upside, Jensen rides to the rescue of 0:01:20.280 --> 0:01:22.840 Samsung were currently up three point four percent, even though 0:01:22.880 --> 0:01:26.360 the numbers of their last quarter were dismal. But it 0:01:26.440 --> 0:01:29.400 looks as though the high bandwidth memory chips are so 0:01:29.440 --> 0:01:32.280 important to integrate into AI accelerators of in video while 0:01:32.319 --> 0:01:33.679 they're coming at a pace. 0:01:34.000 --> 0:01:35.679 Peter Elstrom has more on all of this. 0:01:35.760 --> 0:01:38.639 Peter, just give us the nuance because Samsung has lagged 0:01:38.680 --> 0:01:42.040 behind s K, Heihinis and smaller competitors when it comes 0:01:42.080 --> 0:01:45.400 to high bandwidth memory. But some optimism from Jensen Wang here. 0:01:46.440 --> 0:01:49.720 Yeah, that's exactly right. So Samsung reported preliminary earning, so 0:01:49.720 --> 0:01:51.720 we're going to get the final earnings later. But as 0:01:51.760 --> 0:01:55.440 you said, they were pretty terrible. They reported operating profit 0:01:55.560 --> 0:01:59.240 of six point five trillion Walt's about four point five 0:01:59.240 --> 0:02:02.120 billion dollars and so third less than everybody had been expecting. 0:02:02.200 --> 0:02:04.520 Revenue was also a bit late. But just a few 0:02:04.520 --> 0:02:07.160 words from Jensen Wong and the stock went up. And 0:02:07.240 --> 0:02:09.960 really the reason for this is what he said was 0:02:10.000 --> 0:02:12.919 not even that positive. But he said that Samsung has 0:02:13.000 --> 0:02:15.440 to make this leap to AI chips. They have to 0:02:15.480 --> 0:02:17.800 make these breakthroughs, and he said that they're working, they 0:02:17.840 --> 0:02:19.679 can do it, and they're doing and they're working very 0:02:19.720 --> 0:02:21.480 fast to do it. They're trying to come out with 0:02:21.480 --> 0:02:24.560 the next generation of high bandwidth memory chips that will 0:02:24.600 --> 0:02:27.400 be paired with the Nvidia AI accelerators to be able 0:02:27.400 --> 0:02:29.880 to train these AI models. So just a few words 0:02:29.880 --> 0:02:33.160 from Jensen Wong were really enough to turn around Samsung's fate. 0:02:33.440 --> 0:02:36.720 He expressed some optimism that they're making progress. They're coming 0:02:36.760 --> 0:02:39.720 out with a new design for the HBM chips, and 0:02:39.840 --> 0:02:41.880 Vidio is going to get to the point where at 0:02:41.919 --> 0:02:43.760 some point they're going to give them approval for these 0:02:43.919 --> 0:02:46.400 HBM chips, then they can start to buy from them. 0:02:46.480 --> 0:02:49.359 In addition to ask k Heinix essentially as Kahnks has 0:02:49.360 --> 0:02:52.320 had a monopoly on this market so far, so in 0:02:52.440 --> 0:02:55.080 Vidio wants competition there. They want Samsung to get into the. 0:02:55.080 --> 0:02:57.360 Market, and boy hasn't been displayed in the share prices 0:02:57.480 --> 0:02:59.920 right we saw sk heinicks up about twenty percent LAS, 0:03:00.320 --> 0:03:02.840 whereas I think is about a third of the market 0:03:02.919 --> 0:03:06.160 capitalization of Samsung was ripped away because of their seeming 0:03:06.840 --> 0:03:09.160 delay on getting in on high bandwidth memory. 0:03:09.360 --> 0:03:11.320 Are they having though to spend a lot? Is that 0:03:11.360 --> 0:03:13.120 why we saw the disappointment in the numbers. 0:03:14.160 --> 0:03:17.240 Yeah, certainly they're investing very heavily, and Samsung is not 0:03:17.360 --> 0:03:19.880 used to being in this position. Samsung has long led 0:03:19.880 --> 0:03:21.960 the memory market. They've been the biggest, they invest the 0:03:21.960 --> 0:03:24.280 most amount of money, they get the best engineers, and 0:03:24.360 --> 0:03:26.320 what they're seeing is that es khin has kind of 0:03:26.360 --> 0:03:28.680 like the little brother in this market, has been able 0:03:28.720 --> 0:03:31.880 to surpass them. And partly that's because Skhinnicks had a 0:03:31.919 --> 0:03:35.880 breakthrough design and how they organized their HBM chips that 0:03:35.920 --> 0:03:38.480 really help with some of the heat dissipation issues that 0:03:38.520 --> 0:03:41.760 are necessary as we move into this higher powered computing 0:03:42.080 --> 0:03:45.680 with AI in AI memory in particular. So eske Hynicks 0:03:45.680 --> 0:03:48.160 has gotten ahead of them. They got invidious approval to 0:03:48.200 --> 0:03:50.440 be able to ship these chips. That's been a huge 0:03:50.480 --> 0:03:52.720 boom to esk Heynicks in their share price so far. 0:03:53.080 --> 0:03:56.000 But they have Samsung right behind them, very determined to 0:03:56.040 --> 0:03:58.200 catch up, and as we heard from Jensen Wong, they 0:03:58.200 --> 0:03:59.200 are making progress. 0:03:59.640 --> 0:04:03.000 Alstro, we thank you so much. Now that's head out 0:04:03.040 --> 0:04:05.480 to Las Vegas. We are our own ed Ludlow was 0:04:05.560 --> 0:04:07.760 on the ground at CES with the laterst dead. 0:04:08.560 --> 0:04:11.160 Yeah, it's so interesting to hear Peter talk about the 0:04:11.200 --> 0:04:14.920 semiconductor and AI demand at Samsung, because if you look 0:04:14.920 --> 0:04:17.760 at the numbers, it was everything not AI that was 0:04:17.800 --> 0:04:20.080 the pain point, and a lot of the street going 0:04:20.120 --> 0:04:21.680 into that print. 0:04:21.279 --> 0:04:23.000 Were like, well, what does Samsung do? 0:04:23.120 --> 0:04:26.080 They sell smartphones and they smell, they sell high end 0:04:26.120 --> 0:04:29.760 TVs and everything here at CES is all the rest, right. 0:04:29.760 --> 0:04:33.320 They're always the biggest exhibitor here, high end appliances that 0:04:33.440 --> 0:04:35.640 AI integrated. I don't know if you have an AI 0:04:35.680 --> 0:04:38.760 integrated fridge or washing machine, Caroline, I don't know if 0:04:38.800 --> 0:04:41.640 I need one. But that's what Samsung was hoping would 0:04:41.680 --> 0:04:45.599 be a boost to profit in particular, and it didn't materialize. 0:04:45.960 --> 0:04:48.960 It certainly didn't. But actually Jenson Wang right to the rescue, 0:04:49.040 --> 0:04:52.040 and is Jensen's making moves whether it's on quantum stocks 0:04:52.040 --> 0:04:54.000 as well. But just talk us through a little bit 0:04:54.040 --> 0:04:55.839 more of what we're seeing unfolded when it comes to 0:04:55.880 --> 0:04:57.880 actual consumer technology here. 0:04:58.920 --> 0:05:01.000 Yeah, so if you and my in the ginormous hall 0:05:01.000 --> 0:05:03.000 behind me, right at the center of it, out of shot, 0:05:03.080 --> 0:05:06.560 is this like mini stadium, and that is Samsung's display. 0:05:06.600 --> 0:05:09.080 It's always the biggest, and they are betting that the 0:05:09.120 --> 0:05:11.359 consumer now is going to part with their cash to 0:05:11.400 --> 0:05:14.400 build out their home in competition with Apple, in competition 0:05:14.440 --> 0:05:18.320 with Amazon. I spoke to Jianjung, executive vice president, Samsung, 0:05:18.360 --> 0:05:22.240 head of smart Things. It's all about efficiency, cost and energy. 0:05:22.240 --> 0:05:22.720 Listen to this. 0:05:23.920 --> 0:05:28.120 Twenty twenty four was the ten year anniversary since Samsung 0:05:28.200 --> 0:05:32.479 acquired smart Things and started building this smart home experience 0:05:32.520 --> 0:05:37.479 to our consumers. And with this smart Things platform, you know, 0:05:37.520 --> 0:05:40.839 we are just so thrilled that each year we can 0:05:40.960 --> 0:05:45.560 really deliver new, like innovative features to our customers and 0:05:45.800 --> 0:05:50.720 like from like the kitchen to living room, bedroom and 0:05:50.880 --> 0:05:54.120 all the appliances and TVs and you know watches and 0:05:54.240 --> 0:05:57.560 rings and Galaxy devices that you know, with the smart 0:05:57.560 --> 0:06:01.000 Things platform, we can really help you live in the 0:06:01.080 --> 0:06:04.520 best way, like optimize, we can we can set the 0:06:05.000 --> 0:06:08.760 optimized settings for you for your bedroom and kitchen and 0:06:09.240 --> 0:06:12.440 living room. So so with the smart Things, you know, 0:06:12.480 --> 0:06:16.640 the connectivity and then AI that we add to make 0:06:16.960 --> 0:06:21.240 this appliances and device a small adaptable to your lifestyle. 0:06:21.680 --> 0:06:25.280 I think that's the really great benefit of smart Things platform. 0:06:25.760 --> 0:06:27.000 What can provide ideas? 0:06:27.120 --> 0:06:30.120 Are you recognizing in the consumers, So for example, say 0:06:30.520 --> 0:06:35.320 somebody watching this has never had a connected appliance to 0:06:35.400 --> 0:06:38.880 device let alone and an. 0:06:38.760 --> 0:06:41.760 AI capable washing machine or refrigerator. 0:06:41.839 --> 0:06:44.000 Well, we think that you know, so you may want 0:06:44.040 --> 0:06:47.240 to start with one like appliance at a time, right, 0:06:47.640 --> 0:06:52.760 but once you once you experience that benefit, then I 0:06:53.160 --> 0:06:55.719 like you may want to then change replace all the 0:06:55.760 --> 0:06:56.520 other appliances. 0:06:56.600 --> 0:06:58.200 I mean that's what I actually did. 0:06:58.680 --> 0:07:02.000 So I recently moved to a new apartment and then 0:07:02.120 --> 0:07:04.040 you know, I was like, okay, so maybe I can 0:07:04.200 --> 0:07:08.479 sort of have a one new washing washer. And then 0:07:08.560 --> 0:07:11.000 it's just the benefit is so great, right, so you 0:07:11.040 --> 0:07:14.440 can remotely control it, you can see the energy use. 0:07:14.480 --> 0:07:16.720 Then then why not you know, replace the dryer so 0:07:16.760 --> 0:07:19.920 that I can have added benefit. And then you know, 0:07:20.080 --> 0:07:22.760 once I see the value of okay, then with the 0:07:22.880 --> 0:07:25.720 washer and dryer and then then cooked up and the hoods, 0:07:25.760 --> 0:07:29.240 you know they all together, then you can say more energy, uh, 0:07:29.280 --> 0:07:33.200 and then you can sort of have also coordinated control 0:07:33.280 --> 0:07:36.440 that we can provide so kind of slowly, one at 0:07:36.440 --> 0:07:38.840 a time, you can sort of build a smart home 0:07:38.920 --> 0:07:39.480 that way. 0:07:39.840 --> 0:07:42.920 This is the Consumer Electronics Show. But one of the 0:07:42.920 --> 0:07:46.640 more interesting announcements I found was that you're taking small 0:07:46.720 --> 0:07:50.680 things into a scenario that people might not expect with 0:07:51.040 --> 0:07:53.000 some some heavy industries shipping. 0:07:53.440 --> 0:07:56.280 It's talking big commercials right boats? 0:07:56.400 --> 0:07:56.600 Right? 0:07:56.760 --> 0:07:57.440 Why why? 0:07:57.560 --> 0:08:00.440 Why? Why would a ship and a shipped crew need 0:08:00.560 --> 0:08:01.280 small things? 0:08:01.640 --> 0:08:02.800 Why not? Right? 0:08:02.920 --> 0:08:07.960 So? Right, So we are So this year's CS you'll 0:08:08.000 --> 0:08:12.360 see our offerings in the home and beyond the home. 0:08:12.800 --> 0:08:16.680 So we have the smart Things pro solution that we 0:08:16.800 --> 0:08:20.640 built on top of smart Things platform. So this smart 0:08:20.680 --> 0:08:25.320 Things pro solution is for business and we are expanding 0:08:25.480 --> 0:08:31.640 that functionality to car fleet of cars and ships. So 0:08:32.280 --> 0:08:37.360 you know, you'll see our exhibition of our collaboration with 0:08:37.440 --> 0:08:39.720 Samsung Heavy industry this year. 0:08:41.240 --> 0:08:44.400 The executive EP and head of smart Things at Samsung 0:08:44.440 --> 0:08:46.680 there with Ed coming up. We'll be joined by the 0:08:46.679 --> 0:08:50.439 Panasonic North American chairwoman and CEO, Megan may One Lee 0:08:50.679 --> 0:08:52.000 live from CS. 0:08:52.400 --> 0:09:00.320 This a bring bad technology. 0:09:07.960 --> 0:09:10.679 Okay, welcome back to Las Vegas and some special coverage 0:09:10.800 --> 0:09:13.920 of CS twenty twenty five. One of the big focuses 0:09:13.960 --> 0:09:17.679 in this place is always about the technology behind energy, 0:09:17.960 --> 0:09:20.880 the supply chain for energy. One of the companies that 0:09:20.960 --> 0:09:24.720 talk about that most is Panasonic, from energy supply chain 0:09:24.800 --> 0:09:26.960 right through to consumer products as well. And I'm delighted 0:09:27.000 --> 0:09:30.080 to say that Megham Young Wong Lee, Panasonic's North America 0:09:30.200 --> 0:09:33.400 CEO is here. As every year we talk and every 0:09:33.520 --> 0:09:36.439 year there's an update. So let's start with what I 0:09:36.520 --> 0:09:39.920 think your focus was, which was energy supply chain. Yes, Why, 0:09:40.400 --> 0:09:43.920 what's new and in particular, how are you using artificial 0:09:43.960 --> 0:09:46.360 intelligence to get better? 0:09:46.760 --> 0:09:46.920 Yes. 0:09:48.120 --> 0:09:52.000 So we did the Kenot speech yesterday and our message 0:09:52.160 --> 0:09:55.079 was all about well into the future as one hundred 0:09:55.080 --> 0:09:57.959 and six years old old company, and we're making big 0:09:58.040 --> 0:10:01.559 investment in North America in the area energy for evy batteries. 0:10:02.080 --> 0:10:04.679 A supply chain is also a critical part of our 0:10:04.800 --> 0:10:07.480 business and the area that we're trying to make a 0:10:07.520 --> 0:10:14.240 contribution for a more efficient smart supply chain solutions. So 0:10:14.520 --> 0:10:18.000 we about blu Yonder and blue Yonder is coming out 0:10:18.120 --> 0:10:23.360 with an end to end visibility capability with AI agent. 0:10:23.640 --> 0:10:27.679 They can customize for your problems and solutions and can 0:10:27.760 --> 0:10:30.679 work with you. So we're really excited about that announcement. 0:10:31.480 --> 0:10:33.319 What kind of a deal was that? How difficult was 0:10:33.400 --> 0:10:34.200 it gets to be done? 0:10:34.240 --> 0:10:37.640 You know, like the story of twenty twenty four was companies, 0:10:37.760 --> 0:10:41.679 industrial companies particularly going out and saying we're either going 0:10:41.720 --> 0:10:43.839 to have to acquire capabilities, we're going to have to 0:10:43.920 --> 0:10:44.720 grow them internally. 0:10:45.280 --> 0:10:49.600 You went one way, yes, yes, So we started working 0:10:49.640 --> 0:10:51.760 with them a couple of years ago, and we're really 0:10:51.800 --> 0:10:57.120 excited about their our ability and investment that we made 0:10:57.160 --> 0:11:00.760 with blue Yonder and their capability to really the problem 0:11:00.960 --> 0:11:04.559 of the supply chain resilience and safety and will be 0:11:04.679 --> 0:11:07.800 the forthcoming with the newer technology, and we're really excited 0:11:07.840 --> 0:11:12.160 about that. So it's a bully under subsidiary subsidiary of Panasonic, 0:11:12.640 --> 0:11:16.600 and they're in North America based and it's a great 0:11:16.640 --> 0:11:19.040 announcement for US and newer capability for us. 0:11:19.360 --> 0:11:23.320 You said two things, supply chain resilience and investing in America. 0:11:23.880 --> 0:11:25.959 And I post on social media every year that I'm 0:11:26.000 --> 0:11:27.880 going to be speaking to you, and every year I 0:11:27.960 --> 0:11:29.360 get dozens of questions. 0:11:29.640 --> 0:11:32.160 Hundreds actually in this case, I would say. 0:11:32.040 --> 0:11:36.040 The vast majority are about the upcoming Trump administration and 0:11:36.559 --> 0:11:41.920 potential tariffs and policy around China. And that's so interesting 0:11:42.080 --> 0:11:45.360 to you because of the Evy battery supply chain in 0:11:45.360 --> 0:11:46.440 particular in this country. 0:11:46.880 --> 0:11:48.160 What's your message around that? 0:11:49.160 --> 0:11:53.000 So even before the Trump administration, the supply chain, I mean, 0:11:53.080 --> 0:11:55.920 we all know that China controls a lot of row material. 0:11:56.520 --> 0:11:58.240 We head out material being. 0:11:59.200 --> 0:12:02.720 Yes, yes, the Eavy batteries yes, yes, So we've been 0:12:02.800 --> 0:12:06.200 working hard even before I mean during COVID, everyone had 0:12:06.240 --> 0:12:09.800 the challenge of managing supply chain. So we had that 0:12:10.040 --> 0:12:12.520 issue of trying to make sure that the supply chain 0:12:12.640 --> 0:12:17.319 is smooth and predictable and under control. So we have 0:12:17.559 --> 0:12:20.520 vested interest to make sure that it's closer to the production. 0:12:21.280 --> 0:12:24.560 The production being Reno and a newer factory in Kansas 0:12:24.679 --> 0:12:26.240 which is opening up this spring. 0:12:26.440 --> 0:12:27.360 We're really excited about. 0:12:27.360 --> 0:12:28.559 Okay, give me more updates. 0:12:28.600 --> 0:12:31.319 I have the next question from the audience, partip those 0:12:31.400 --> 0:12:34.920 that follow names like Tesla right, ask give me a 0:12:35.040 --> 0:12:36.000 factory update please. 0:12:36.160 --> 0:12:36.319 Yes. 0:12:36.640 --> 0:12:40.400 So our Reno operation has been really successful and it's 0:12:40.520 --> 0:12:43.400 up and running for now ten years, and we're opening 0:12:43.480 --> 0:12:46.319 up new operation in Kansas, and we've been building the 0:12:46.400 --> 0:12:48.800 factory for now two years. It's going to open up 0:12:49.360 --> 0:12:53.440 in April and well we'll be in full operation from 0:12:54.120 --> 0:12:58.120 spring and summer this year. And we're working with partners 0:12:58.200 --> 0:13:01.600 like Mazda Subaru which is a very announced and Lucid 0:13:01.679 --> 0:13:02.000 as well. 0:13:02.120 --> 0:13:05.000 That's right with the gravity projects exactly. Okay, that's interesting. 0:13:05.040 --> 0:13:07.400 So I got a question for you about Lucid, and 0:13:07.760 --> 0:13:09.120 when I read it from me, it was from an 0:13:09.120 --> 0:13:09.839 audience member. 0:13:10.440 --> 0:13:12.920 I was trying to think, like, what's what's the core 0:13:13.000 --> 0:13:13.520 of this question? 0:13:13.679 --> 0:13:16.040 But I think people were surprised that you partnered with 0:13:16.160 --> 0:13:18.880 Lucid on the gravity it might not necessarily be a 0:13:19.000 --> 0:13:22.520 high volume ev initially, what was your thinking there? 0:13:23.080 --> 0:13:26.120 So Panasonic being a one hundred and six years old company, 0:13:26.240 --> 0:13:28.439 and it's great to work with the partners. 0:13:28.040 --> 0:13:30.880 Like Sabaru and Mazda, but we're very also. 0:13:30.760 --> 0:13:33.559 Keen on working with up and coming, newer companies so 0:13:33.679 --> 0:13:36.360 that they challenge us and we learn from them and 0:13:36.480 --> 0:13:39.679 make sure that we're partnering and capable of partnering with 0:13:39.760 --> 0:13:40.840 the companies like Lucid. 0:13:40.920 --> 0:13:42.079 And we're really excited about that. 0:13:42.200 --> 0:13:43.079 It's going really well. 0:13:43.440 --> 0:13:47.800 I've covered that company a few years and interesting vehicles. 0:13:47.920 --> 0:13:50.560 They're not very good at building them, you know, from 0:13:50.600 --> 0:13:53.120 a volume perspective. When you make a decision like that, 0:13:53.280 --> 0:13:55.480 how do you weigh that up in your head? You know, 0:13:55.679 --> 0:13:57.920 because you want to be able to provide supply. It 0:13:58.040 --> 0:13:59.440 helps you in supply chain planning. 0:14:00.200 --> 0:14:03.439 I do think we as a company want to take 0:14:03.480 --> 0:14:06.680 a chance and partner with the companies that operate different 0:14:06.720 --> 0:14:09.480 ways than US. Bluyander is an example why it's a 0:14:09.520 --> 0:14:14.120 software company US based, and Lucid is also a newer 0:14:14.200 --> 0:14:19.080 partner too. But we have a success cases with Tesla 0:14:19.240 --> 0:14:22.160 ten years ago and we're doing it again with Lucid, 0:14:22.240 --> 0:14:23.760 and we're very bullish about that. 0:14:24.000 --> 0:14:26.640 What is the latest on the Tesla relationship? Where are 0:14:26.680 --> 0:14:29.040 you innovating and where do you see it progressing? 0:14:30.640 --> 0:14:34.080 We are Panasonic as a Panasonic and really excited about 0:14:34.200 --> 0:14:35.800 the forty six eighty capability. 0:14:36.200 --> 0:14:37.840 Which where are we at with forty six eighty? 0:14:38.160 --> 0:14:40.160 So that product is. 0:14:42.040 --> 0:14:43.680 The capability and quality is great. 0:14:44.440 --> 0:14:48.920 It's been tested and production in our mother company factory 0:14:49.000 --> 0:14:51.720 in Japan, and we're planning on bringing it to our 0:14:51.800 --> 0:14:52.800 cancas in the future. 0:14:53.320 --> 0:14:56.480 You with respect, R a CS veteran. You've been to 0:14:56.640 --> 0:14:59.640 many what's it been like this year? Many of the 0:15:00.480 --> 0:15:03.480 and automakers are here just walking around. I feel like 0:15:03.960 --> 0:15:07.560 even on the consumer electronics side, genuine consumer electronics, things 0:15:08.280 --> 0:15:11.200 are positive. Yes, what have you been talking with your 0:15:11.240 --> 0:15:14.640 customers your suppliers with what are they thinking about? 0:15:15.320 --> 0:15:19.200 So we started working with CTA and CS since nineteen 0:15:19.280 --> 0:15:20.360 sixty seven. 0:15:20.640 --> 0:15:23.680 Okay, so we're one of the longer, so we feel. 0:15:23.480 --> 0:15:26.200 Like we've grown up with the CTA. 0:15:26.480 --> 0:15:30.200 CES is not necessarily so much about newer gadgets and products. 0:15:30.280 --> 0:15:31.960 It's about our message. 0:15:32.360 --> 0:15:35.840 Our keynote speech was about storytelling how we grew up 0:15:36.040 --> 0:15:40.320 with the CTA for past sixty years, so we feel 0:15:40.400 --> 0:15:40.840 really good. 0:15:41.000 --> 0:15:42.280 AI was big last year. 0:15:43.200 --> 0:15:45.400 This year it's all about application. 0:15:45.120 --> 0:15:49.040 Even including us. We made an announcement about a product 0:15:49.080 --> 0:15:53.920 called Umi. It's an AI wellness coach that's on the floor, 0:15:54.200 --> 0:15:58.040 and you know, it's a newer capability that we're demonstrating 0:15:58.160 --> 0:16:01.200 on this platform, which is a little different from our 0:16:01.400 --> 0:16:04.640 past capability, but we are coming up with a newer 0:16:04.720 --> 0:16:06.560 solution and AI product. 0:16:06.640 --> 0:16:09.160 We just had fifteen seconds. Are you ready for the 0:16:09.160 --> 0:16:11.920 Trump administration? Yes, we are, and. 0:16:12.000 --> 0:16:15.200 We've been prepared for this and we will work with 0:16:15.280 --> 0:16:17.680 the government to make sure that our investment in this 0:16:17.880 --> 0:16:21.280 market is meaningful for our company as well as as 0:16:21.360 --> 0:16:22.320 well as for the market. 0:16:22.600 --> 0:16:25.800 Megan Young onely, I always appreciate catching up here in 0:16:25.880 --> 0:16:29.640 Las Vegas, Panasonic North America CEO Caroline back to. 0:16:29.640 --> 0:16:30.200 You in New York. 0:16:30.480 --> 0:16:33.200 Great conversation and another story ed that we're watching and 0:16:33.280 --> 0:16:36.320 it's going back to Anthropic, the open AI rival, is 0:16:36.360 --> 0:16:38.440 in advanced talks to raise two billion dollars and a 0:16:38.480 --> 0:16:40.880 funning round that would value the startup at sixty billion, 0:16:41.600 --> 0:16:45.280 sources saying this Lightspeed Venture Partners is leading around. Anthropic 0:16:45.400 --> 0:16:47.800 was recently on pace to generate around eight hundred and 0:16:47.840 --> 0:16:48.840 seventy five million. 0:16:48.600 --> 0:16:50.120 Dollars in annual revenue. 0:16:57.800 --> 0:17:01.040 Serious XM, the online radio service, so is it's focused 0:17:01.080 --> 0:17:04.640 on growth after it's twenty twenty five full costs missed expectations. 0:17:04.680 --> 0:17:05.600 That was back in December. 0:17:05.880 --> 0:17:07.760 Now, Belie Meg's Ed Ludlow just caught up with the 0:17:07.840 --> 0:17:11.000 CEO Jennifer Witz at CES and began with a discussion 0:17:11.040 --> 0:17:12.200 on AI implementation. 0:17:13.520 --> 0:17:14.400 In some ways, I think. 0:17:14.320 --> 0:17:17.959 We're the ANTIAI in terms of in terms of content 0:17:18.080 --> 0:17:22.720 creation and curation, right, So, you know, we pride ourselves 0:17:22.840 --> 0:17:25.480 on the hosts and the programmers that we have, the 0:17:25.640 --> 0:17:29.000 people that actually put together the channels and the shows. 0:17:29.280 --> 0:17:32.320 It's the voices you hear every day on your commute, 0:17:32.560 --> 0:17:36.600 but really drive that intimacy that audio offers in the connection. 0:17:37.600 --> 0:17:40.720 Where we will leverage AI is in some respects where 0:17:40.760 --> 0:17:43.640 others have used it as well to provide better discovery 0:17:43.720 --> 0:17:47.199 and personalization, right, So we hope that our programmers can 0:17:47.280 --> 0:17:50.600 really curate an experience to help you find what you love. 0:17:51.000 --> 0:17:54.679 But also the technology of AI could create more personalization 0:17:54.960 --> 0:17:57.480 in our marketing, in the product itself in terms of 0:17:57.520 --> 0:18:01.240 recommendations to enhance that and more. And of course there's 0:18:01.280 --> 0:18:04.680 lots of other benefits for AI in terms of cost 0:18:04.760 --> 0:18:06.720 reduction and more efficiencies in the business. 0:18:06.760 --> 0:18:08.480 Overall, this is Bloomberg. 0:18:08.680 --> 0:18:09.879 So let's talk some business. 0:18:10.080 --> 0:18:13.080 Last month, you basically said this is our revenue outlook 0:18:13.119 --> 0:18:16.880 for twenty twenty five, and investors, for whatever reason, we're disappointed. 0:18:17.480 --> 0:18:19.760 You also said that you're going to cut costs run 0:18:19.840 --> 0:18:23.520 your business. How is the cost costing going and what 0:18:23.640 --> 0:18:26.800 were the factors that I guess if you accept that 0:18:26.960 --> 0:18:30.160 the revenue outlut is not what your investors want to see, 0:18:30.440 --> 0:18:32.920 what were the factors behind it being what it was. 0:18:33.680 --> 0:18:37.160 Yeah, So we're very focused on supporting the top line 0:18:37.200 --> 0:18:39.320 and the two aspects of our business that we've talked about, 0:18:39.560 --> 0:18:43.440 subscription and advertising, and we have opportunities to continue to 0:18:43.560 --> 0:18:45.760 grow there and drive improvements to that part. 0:18:45.680 --> 0:18:47.880 Of our business. But we're really focused on the subscription 0:18:48.040 --> 0:18:50.080 side on what we do best. 0:18:50.320 --> 0:18:53.080 Audio first, and in the car, because that's where we've 0:18:53.240 --> 0:18:56.040 proven that we can really be successful, and that's where 0:18:56.160 --> 0:18:59.200 radio is very successful in our ads business. We talked 0:18:59.200 --> 0:19:01.479 about where we're at in terms of podcasts and other 0:19:01.560 --> 0:19:05.159 content to build out that portfolio, and yes, cost reduction 0:19:05.280 --> 0:19:07.359 will be increasingly. 0:19:06.880 --> 0:19:08.160 Important as we move forwards. 0:19:08.200 --> 0:19:11.040 We want to sustain our industry leading margins, and on 0:19:11.160 --> 0:19:14.640 top of that, we also have significant free cash flow 0:19:14.720 --> 0:19:18.160 generation right and as we get to our target leverage ratio, 0:19:18.520 --> 0:19:22.840 we'll be able to increasingly return capital and shareholders, whether 0:19:22.880 --> 0:19:26.800 it's through our dividend or through show repurchases as well. 0:19:26.960 --> 0:19:28.800 I think I'm right in saying this is your first 0:19:28.880 --> 0:19:33.560 CES in about five years. That's right, It's packed. There 0:19:33.640 --> 0:19:36.640 is an intense focus on the exhibitors AI. I would 0:19:36.680 --> 0:19:39.120 also say there are lots of questions about what twenty 0:19:39.200 --> 0:19:41.720 twenty five is going to be like, in particular because 0:19:41.760 --> 0:19:43.960 we have a new administration that will come into office 0:19:44.359 --> 0:19:47.720 this month. How a serious extent preparing for that? Do 0:19:47.840 --> 0:19:50.600 you see if being a factor to. 0:19:50.680 --> 0:19:53.680 People that listen to audio in America this year? 0:19:54.760 --> 0:19:57.040 We have a really diverse set of content, and I 0:19:57.080 --> 0:19:59.240 think one of the things we saw during the election 0:19:59.560 --> 0:20:05.240 is an increase in news and politics content consumption, which 0:20:05.320 --> 0:20:07.560 is probably not surprising, but it just speaks to the 0:20:07.640 --> 0:20:10.520 overall bundle and that we have something for everyone at 0:20:10.560 --> 0:20:13.160 any given time depending on what's going on, and also 0:20:13.320 --> 0:20:16.280 the value of live linear when something important is going on. 0:20:17.200 --> 0:20:18.960 So I think, you know that's going to continue to 0:20:19.000 --> 0:20:20.719 be a focus for us. And then you know there 0:20:20.760 --> 0:20:23.080 are things like you know, people are focused on tariffs 0:20:23.119 --> 0:20:25.200 and taxes and what happens with the auto business. 0:20:25.280 --> 0:20:27.040 But you know, we feel really good. 0:20:26.920 --> 0:20:30.440 About our position in terms of our availability across the 0:20:30.480 --> 0:20:33.359 spectrum of auto manufacturers, being a lot of meetings with 0:20:33.440 --> 0:20:36.320 the OEMs while we're here, in addition to advertisers, and 0:20:37.280 --> 0:20:39.480 I think we feel good. December was a great month 0:20:39.560 --> 0:20:42.120