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Speaker 1: From the heart of where innovation, money and power Colli

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Speaker 1: in Silicon Vallet and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay. I'm only changing San Francisco, and this is

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Speaker 1: Bloomberg Technology coming up in the next hour. Snap misses

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Speaker 1: and big and even CEO Evan Spiegel says he's not

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Speaker 1: happy about the results. Plus, the company gives no third

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Speaker 1: quarter forecast. Just how deep are advertisers slashing their budgets?

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Speaker 1: We will discuss. Plus, consumers are so strapped for cash

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Speaker 1: they're pushing back cell phone payments and that's hurting A

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Speaker 1: T and t s bottom line, chairs dropping the most

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Speaker 1: in two decades. I'll ask a T and T CEO

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Speaker 1: John Stanky what this tells him about the state of

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Speaker 1: the economy. And big tech is on a health kick.

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Speaker 1: Amazon is buying one Medical in a three and a

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Speaker 1: half billion dollar deal. The news a day after Apple

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Speaker 1: published a sixty page report about its own dominant in

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Speaker 1: the sector. We will head to the front lines of

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Speaker 1: a new showdown all of that in a moment, But

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Speaker 1: I do want to talk a little bit more about

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Speaker 1: Snap now bringing Jasmine Edinburgh, principal analyst at Insider Intelligence.

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Speaker 1: Look Jasmine just had a bad How bad a signal

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Speaker 1: does this send? Well, this isn't totally unexpected. I think

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Speaker 1: the big question was how big of a slump it

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Speaker 1: would be, And now it's just become increasingly clear that

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Speaker 1: all these macro economic challenges are really putting pressure on

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Speaker 1: Snap's ad business. Now. Snap has staked its future on

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Speaker 1: augmented reality, which holds promise, but it is still very

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Speaker 1: niche as an advertising and an e commerce tool. And

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Speaker 1: at the same time we also have Apple's privacy changes

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Speaker 1: which have disproportionately affected performance advertiser. So it's really creating

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Speaker 1: this one to punch um to snapchats ad business. Now, Snap,

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Speaker 1: of course is a small player in the digital ad market.

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Speaker 1: At Insider Intelligence, we expect Snap to make up just

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Speaker 1: one percent of worldwide digital ad revenues this year, which

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Speaker 1: means it could be more susceptible to a lot of

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Speaker 1: these challenges than bigger players, for example. Well, that's a question,

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Speaker 1: is this just Snap or is this going to impact

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Speaker 1: everyone else? And are we going to see this in

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Speaker 1: the results of Facebook and Meta excuse me, and Google

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Speaker 1: and Twitter for example? Stocks of all of these companies

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Speaker 1: dropped on the back of Snaps results as well? How

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Speaker 1: much how contagious if you will, is this? Yeah, I

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Speaker 1: think we'll be hard pressed to find any social platform

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Speaker 1: that hasn't struggled in Q two. I'm not expecting fantastic

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Speaker 1: results for any of these companies, but again it's the

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Speaker 1: smaller players that tend to be more vulnerable to a

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Speaker 1: lot of these challenges than the larger ones. How much

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Speaker 1: competition do you foresee from streaming services in the ad business?

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Speaker 1: With Netflix, Disney, HBO all exploring these ad support in models.

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Speaker 1: Is that now a new battleground? So I cover social

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Speaker 1: media companies and I don't cover Netflix and other streaming companies,

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Speaker 1: but I will say that the more consumer attention is

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Speaker 1: divided onto these different platforms, and the more options advertisers

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Speaker 1: have on where to spend their ad dollars, especially with

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Speaker 1: a lot of these issues like the app like Apple's

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Speaker 1: privacy changes that are impacting the social media companies, the

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Speaker 1: more likely it is that they will diversify their spending

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Speaker 1: and perhaps spend elsewhere. What can we anticipate from Twitter

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Speaker 1: results coming out tomorrow? Obviously we know Twitter one Round

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Speaker 1: one in core and that side show is gonna be

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Speaker 1: going on now for several more months at least. Yeah,

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Speaker 1: I'm not expecting really great things for Twitter tomorrow. Um.

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Speaker 1: It has been distracted from most of Q two with

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Speaker 1: the whole Musk ordeal, and that has made it harder

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Speaker 1: for it to really focus on growing its business and

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Speaker 1: its revenues. Um. Twitter is also a small player in

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Speaker 1: the digital ad market. It will also make up around

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Speaker 1: one percent of total worldwide digital ad revenues this year

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Speaker 1: per our podcast, So it is vulnerable to a lot

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Speaker 1: of these necro economic challenges as well as other changes

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Speaker 1: and online privacy and shifts them consumer behavior. All right,

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Speaker 1: Jasmine Emberg, Insider Intelligence principal analyst, thank you as always

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Speaker 1: for your insights. Will continue to listen. In two snaps call,

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Speaker 1: it was a strong earnings report, but oblique outlook. A

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Speaker 1: T and T just had its worst open in twenty

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Speaker 1: years as rising prices from gas to groceries way on customers.

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Speaker 1: A T and T cut it's free cash full forecast

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Speaker 1: by two billion dollars, saying more people are putting off

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Speaker 1: paying their bills. Joining me now, John Stanky, the CEO

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Speaker 1: of A T and T, So John look, investors were

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Speaker 1: a little spooked by what they saw today what's your

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Speaker 1: response to their response. Well, I think the investors looked

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Speaker 1: at the cash number and they were you know, certainly

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Speaker 1: it was a bit out of pattern for our second quarter,

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Speaker 1: and I acknowledge it. It is, and as I described

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Speaker 1: this morning during the call, that a lot of it

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Speaker 1: was by our choice. One. You know, we had record

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Speaker 1: customer growth and we had to fund that customer growth,

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Speaker 1: and that requires cash out the door, and that's not

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Speaker 1: business I'm going to walk away from. And and frankly,

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Speaker 1: the numbers and the economy is a bit stronger right

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Speaker 1: now that we had anticipated last year when we set

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Speaker 1: the plan. And I think it's a good thing we've

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Speaker 1: got the customers coming in the door, but it did

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Speaker 1: have a negative impact on CAST. Secondly, we're investing at

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Speaker 1: record levels in the business, and we front endloaded our

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Speaker 1: capital plan this year, which from our perspective is probably

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Speaker 1: a good thing. It allows us to sell into that

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Speaker 1: inventory and and drive more broadband subscribers, and we were

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Speaker 1: able to get more five G coverage out there to

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Speaker 1: our customers on midband spectrum than what we had planned.

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Speaker 1: That also took cash. The one element that I think

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Speaker 1: you're referring to is we did see customers take a

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Speaker 1: little bit longer to pay their bills, and that how

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Speaker 1: working capital impact. But we were pretty clear that we

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Speaker 1: weren't saying customers weren't paying their bills, and we weren't

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Speaker 1: saying that activity was slowing down. We just said simply

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Speaker 1: that we've got customers taking a little bit longer to

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Speaker 1: pay their bills, and there was a working capital impact.

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Speaker 1: And in a business our size, you know, when you

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Speaker 1: end up seeing them take a day or two longer

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Speaker 1: to pay, that's a significant impact to the cash flow. Now,

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Speaker 1: what's also recently really interesting here is this is a

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Speaker 1: fairly recent trend that you've been seeing just over the

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Speaker 1: last several weeks. A day or two maybe not a

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Speaker 1: huge deal, but what are the chances these delays get

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Speaker 1: longer or are you expecting some of these customers potentially

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Speaker 1: to cancel. I think we don't expect these customers to cancel.

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Speaker 1: We've we've had, you know, a lot of experiences going

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Speaker 1: through economic downturns, probably depending on what point of view

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Speaker 1: you hold of the economy in the future right now,

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Speaker 1: looking at looking at projections, certainly people are talking to

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Speaker 1: either saw landing or avoiding a recession. Altogether. Um, So,

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Speaker 1: you know, we've been through much more severe cycles. And

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Speaker 1: what we know is that customers really want to keep

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Speaker 1: their connectivity services. They stick through. And that's why I said,

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Speaker 1: we don't view this as a cataclysmic problem at all.

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Speaker 1: We see customers choosing to take a couple more days

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Speaker 1: to pay their bills, creating a working capital problem, not

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Speaker 1: a bad debt issue. Uh. And you know whether or

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Speaker 1: not it gets more severe. I mean, I'm not a

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Speaker 1: fortune teller. I wouldn't anticipate that in the economy right

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Speaker 1: now based on the numbers are seeing. But we do

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Speaker 1: expect a more tepid environment working looking forward, and that

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Speaker 1: tepid environment, you know, could slow down economic economic activity

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Speaker 1: a little bit, it could extend things a little bit.

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Speaker 1: We've taken a conservative view on our forecast right now.

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Speaker 1: We feel pretty comfortable that we've got that under control

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Speaker 1: for the balance of this year. You've cut your free

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Speaker 1: cash flow forecast, but you've maintained your capital spending plans

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Speaker 1: as you've been talking about. You are investing in the business.

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Speaker 1: Will you have to cut the dividend. No, we don't

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Speaker 1: have to cut the dividend. We have plenty of coverage

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Speaker 1: on the dividend. We we adjusted the dividend coming out

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Speaker 1: of the Warner Brothers Discovery transaction. We just paid down

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Speaker 1: over forty billion dollars of debt on the balance sheet,

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Speaker 1: saw a great improvement to our justed net debt to EBITDA.

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Speaker 1: As a result of that, we've got a lot of

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Speaker 1: free cash flow cushion. We are investing at a record pace,

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Speaker 1: both in customer growth and in our networks. As we've

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Speaker 1: explained to our investor base, that's not a forever rate

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Speaker 1: of investment. Right now. We're repositioning the business, we're penetrating

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Speaker 1: with fiber, We're improving some of our internal processes to

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Speaker 1: take costs out. Those will start to yield dividends back

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Speaker 1: into our business in terms of better operating performance and

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Speaker 1: better operating leverage. As we've characterized for the balance of

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Speaker 1: this year, we'll have plenty of room to cover the dividend,

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Speaker 1: and we have plenty of room to invest in this

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Speaker 1: business at a robust clip moving forward. We feel very

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Speaker 1: comfortable about that. You had said you were considering raising

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Speaker 1: prices again. Are you still considering raising prices and if so,

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Speaker 1: by how much? And when, Emily, I think what I said,

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Speaker 1: is that any company that gets into an environment where

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Speaker 1: there's extended high inflation rates has to be aware of

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Speaker 1: running both sides of the equation, not only being vigilant

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Speaker 1: about costs and trying to make sure that they're on

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Speaker 1: a perpetual cycle to take costs out of the business,

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Speaker 1: but also being aware that if you're in a long,

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Speaker 1: extended inflationary cycle, sometimes you have to work the revenue

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Speaker 1: side of the equation too. And you know, we did

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Speaker 1: one of our first actions earlier this year, and we

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Speaker 1: I think frankly engineered that as a win win for customers.

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Speaker 1: We did have to take some prices up, but we're

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Speaker 1: also able to give the customers some more value is

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Speaker 1: we took prices up some new features and plans and

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Speaker 1: services that they could migrate into. UM I don't know

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Speaker 1: what the next twelve months has in store. If it

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Speaker 1: extends on while we see nine percent inflation, will we

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Speaker 1: have to consider psibly some other actions on pricing. I

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Speaker 1: would say that's not off the table right now. We

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Speaker 1: haven't made any decisions around that, or we don't have

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Speaker 1: any specific plans. Curious, if you think this is an

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Speaker 1: industry wide issue, would you be surprised if T Mobile

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Speaker 1: and Verizon don't see customers putting off their bills. I

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Speaker 1: don't know what T Mobile and Verizon is going to report.

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Speaker 1: I know what I reported, and I know what our

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Speaker 1: data is, and I can tell you that our customers,

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Speaker 1: you know, basically have extended their payment cycle by about

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Speaker 1: two days. And as I said, I'm not concerned about

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Speaker 1: that given past history. I'm also looking at a relative

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Speaker 1: to pre pandemic levels, and it's not grossery grossly out

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Speaker 1: of line with pre pandemic levels. Um, what I can

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Speaker 1: tell you is a T and T is kind of

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Speaker 1: a mini microcosmos society and our customer base. I would

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Speaker 1: think what we're seeing is is kind of representative of

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Speaker 1: the broader economy. But I don't know that for a fact.

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Speaker 1: I just know the data I've got on my customers.

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Speaker 1: All Right, You've got a twenty three state footprint in fiber,

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Speaker 1: and I know one of your big ambitions is to

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Speaker 1: make a T and T the best broadband provider in

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Speaker 1: the United States. The competitive landscape is changing here and fast.

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Speaker 1: Are you looking to buy or build beyond what you've

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Speaker 1: done so far? You know, it's it's a really good question. Emily.

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Speaker 1: I think they'll put this in perspective. From January of

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Speaker 1: this year to this today, as we've reported, we've grown

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Speaker 1: over two million connected locations on our fiber network and

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Speaker 1: we're now at eighteen million connected locations. We are the

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Speaker 1: scaled fiber provider in the United States, and we are

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Speaker 1: building at a rate faster than anybody else. It's deploying fiber.

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Speaker 1: Our organic growth is what's powering this business right now.

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Speaker 1: Our ability to muscle supply chain, the resources and the

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Speaker 1: capabilities to go out and build more infrastructure, and that

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Speaker 1: is really the foundation of what we need to do

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Speaker 1: moving forward. There are other people that deploy fiber in

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Speaker 1: the United States, frankly, most of them are subscale compared

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Speaker 1: to us. And when we're having this success for having

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Speaker 1: an organic basis, frankly, is is probably the right play

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Speaker 1: T ce that for example, Netflix didn't. Oh. I first

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Speaker 1: a business. I mean, they've been a very successful company,

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Speaker 1: what I would tell you that I think we viewed

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Speaker 1: going to actually start to introduce advertising in their platform.

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Speaker 1: I frankly think that will be good for them over

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Speaker 1: the long haul. It allows them to start thinking about

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Speaker 1: other types of content, like sports content that really does

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Speaker 1: need to be alongside advertising in order for it to

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Speaker 1: be a viable and economic approach. But they had a

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Speaker 1: great valuation and it's been tempered a bit. Um. My

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Speaker 1: point of view on streaming is is not that it's

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Speaker 1: a bad thing. I think what I would like to

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Speaker 1: see if I were in David zaslav shoes is that

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Speaker 1: he moves a little bit closer to their valuation, and

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Speaker 1: maybe they kind of came down to a more realistic valuation,

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Speaker 1: and all things considered, I think it's going to be

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Speaker 1: a strong and viable business moving forward. Is ultimately the

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Speaker 1: early innings of the shakeout and we get into a

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Speaker 1: steady state and I think David and Warner Brothers Discoveries

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Speaker 1: based on what you knew? I don't know. I wasn't

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Speaker 1: in the room at the time. You know, David has

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Speaker 1: after the transaction closed a lot of different you know, considerations,

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Speaker 1: his own strategies as to where he wants to take

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Speaker 1: allocate capital. I'm not party to those conversations. I don't

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Speaker 1: know what they were, and I'm sure within that context

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Speaker 1: he made a decision that he felt was best for

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Speaker 1: the business. So one last question, John, to wrap this up.

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Speaker 1: You know, we also saw your business segment a little

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Speaker 1: week and I'm wondering what other companies should be looking

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Speaker 1: at for signals here in your report our business is

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Speaker 1: pulling back more broadly on spending and should that be

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Speaker 1: a warning sign about the economy? You know, I don't

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Speaker 1: think so, Emily. I think in our circumstance, you know,

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Speaker 1: we are the largest provider of services the large complex organizations,

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Speaker 1: and that's an envied position to have. But they're also

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Speaker 1: the businesses that are going through the fastest rate of

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Speaker 1: technology evolution, and they are orienting themselves away from traditional

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Speaker 1: networks that used to be operated and managed exclusively by

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Speaker 1: companies like us, to software defined networking, which ultimately shift

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Speaker 1: some of the capabilities either to the company itself or

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Speaker 1: into a hyper scale or environment. And that changes our

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Speaker 1: role in those particular companies, and that's why as a business,

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Speaker 1: we're pivoting away from our strong position on the enterprise side.

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Speaker 1: Will continue to service those customers and meet their needs

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Speaker 1: in the way we can match them, but we we

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Speaker 1: really want to strengthen our position in the mid market,

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Speaker 1: and our brand is very well positioned to do that.

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Speaker 1: They're the types of customers you still need our expertise

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Speaker 1: and our owned and operated infrastructure to run their companies,

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Speaker 1: and we're under penetrated there, and we have an opportunity

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Speaker 1: for a great amount of growth as a result of that.

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Speaker 1: So I don't think it's a weakness in business. In fact,

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Speaker 1: I think networking is getting more and more important, both

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Speaker 1: mobile and fix for all business customers. It's more of

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Speaker 1: a pivot on technology and how we're positioning our company

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Speaker 1: to line up against that. Interesting. All right, A T

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Speaker 1: and T CEO, John staying key, John, great to have

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Speaker 1: you here on the show. Thank you for taking the time,

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Speaker 1: Thanks for having me and Emily. All Right, coming up

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Speaker 1: a probe into one of Tesla's highest ranking executives and

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Speaker 1: a number of employees already fired this according to Bloomberg sources,

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Speaker 1: we'll talk about their role in a so called secret project,

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Speaker 1: a scoop from our own ed Ludlow. Next, this is Bloomberg.

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Speaker 1: One of you La Musk's top lieutenant, the executive that

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Speaker 1: runs Testla's Texas factory, is now the focus of an

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Speaker 1: internal investor stigation. According to Bloomberg sources, Tesla is looking

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Speaker 1: into omed off Shar for his role in a plan

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Speaker 1: to purchase hard to get supplies that warrant for Tesla.

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Speaker 1: Bloomberg's Ludlow broke the story, He joins us. Now, so ed,

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Speaker 1: who is Omed Afshar and what did he do? Yes? So,

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Speaker 1: Omed af Sha is Elon Musk's right hand man. He

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Speaker 1: used to be executive assistant, then he got promoted to

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Speaker 1: be the director for Projects of the Office of the CEO,

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Speaker 1: and more recently he's basically overseen the construction of the

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Speaker 1: Austin plant Giga Texas and now production that's taking place there.

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Speaker 1: And according to sources, internally the finance group and Legal

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Speaker 1: Audit are looking at a procurement order from earlier this

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Speaker 1: year for some glass. They want to know what the

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Speaker 1: glass was going to be used for and if Omed

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Speaker 1: Afsha knew about it or not um And ultimately, according

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Speaker 1: to sources, one of the questions being asked was is

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Speaker 1: this glass going to be used by Elon Musk for

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Speaker 1: a personal project? Personal use in other words, not for

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Speaker 1: Tesla's own construction or a building associated with Tesla. So

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Speaker 1: what are we thinking here? Was this for an outside

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Speaker 1: quote unquote secret project or a secret project for the CEO? Yes,

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Speaker 1: so we don't know. Sources tell us that omedaf Shar

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Speaker 1: instructed some Tesla employees to generate this procurement order this

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Speaker 1: PO and told them literally that it was for a

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Speaker 1: secret project. Beyond that, we don't have much more information.

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Speaker 1: We know that the PO has generated much earlier this year,

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Speaker 1: um and that the consideration of the suspicion around it

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Speaker 1: has been in place for a number of months, through

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Speaker 1: first Tesla's finance and internal audit team and more recently

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Speaker 1: their head of legal David soul who was kind of

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Speaker 1: looking into this and also looking into Ohmed's involvement. A

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Speaker 1: number of other employees, according to your reporting, I've already

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Speaker 1: lost their jobs over this. Is Omed off Shar You know,

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Speaker 1: is he going to is he going to keeping at

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Speaker 1: the company? Is he going to go on a leave

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Speaker 1: of absence? So what we've been told according to sources

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Speaker 1: is that people have been fired in connection to this,

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Speaker 1: and we're told by sources that the consideration right now

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Speaker 1: is that om Dasha will be put on a leave

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Speaker 1: of absence. We don't have any timing of when that

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Speaker 1: will take place. We of course asked elon Mask Tesla

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Speaker 1: representatives for comment about this, and we haven't heard anything back.

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Speaker 1: So we don't, frankly know what Tesla's position is on

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Speaker 1: all of this, or you know, the latest that's happening

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Speaker 1: inside as of this afternoon. But that's what our reporting is. Okay,

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Speaker 1: I'd lead though big scoop from you. Thank you, will

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Speaker 1: continue to follow your reporting. Welcome back to lovone. We're

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Speaker 1: technology and emily changing in San Francisco. This week, Apple

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Speaker 1: published a sixty page report detailing us for into the

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Speaker 1: health tech business. This well, Amazon has been building its

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Speaker 1: own healthcare presence over the last few years. Now, Amazon's

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Speaker 1: latest salvo buying a primary care provider, One Medical, and

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Speaker 1: in all cash deal value at three point four nine

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Speaker 1: billion dollars. One Medical operates one and eighty two medical

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Speaker 1: offices in twenty markets across the United States are Bloomberg

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Speaker 1: Deal's reporter Michelle Davis, joins us now for more. So

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Speaker 1: obviously we've known about Amazon's healthcare ambitions. This is an

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Speaker 1: interesting turn, though. Why is Amazon buying One Medical? Yeah,

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Speaker 1: so this is Amazon's third biggest deal after Whole Foods

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Speaker 1: and MGM, and uh. With this deal, Amazon gets you know,

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Speaker 1: access to One Medicals, hundreds of thousands of customers, it's

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Speaker 1: relationships with employers, the app, and uh, this is Amazon

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Speaker 1: really an anti Jazzy You know, Amazon's new CEO really

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Speaker 1: trying to make its mark and and really pushing into

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Speaker 1: healthcare in a big way. They had bought a pill pack,

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Speaker 1: you know, they were offering some virtual care through Amazon Care,

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Speaker 1: but this is them really getting deep into the primary

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Speaker 1: care market. Um. The deal took some people by surprise,

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Speaker 1: but I think, you know, knowing how good Amazon is

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Speaker 1: with like manipulating data and analyzing it, um, it'll be

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Speaker 1: really interesting to see what they do with One Medical.

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Speaker 1: You know, how they use the Whole Foods channel, if

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Speaker 1: they you know, combine some of those things to offer

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Speaker 1: I don't know, memberships or like services where you could

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Speaker 1: get i don't know, blood pressure checked at Whole Foods

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Speaker 1: or something like that. The way that you could deliver

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Speaker 1: or return on Amazon package at Whole Foods. Interesting. Wow,

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Speaker 1: never thought of that, which brings me to my next

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Speaker 1: question for One Medical customers, what's going to change? So

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Speaker 1: there aren't that many details that we know so far

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Speaker 1: about what Amazon plans to do with One Medical. We

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Speaker 1: do know that One Medical had been burning cash pretty substantially.

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Speaker 1: It's stock, as you probably know, you know, has been

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Speaker 1: has been on a roller coaster over the past few

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Speaker 1: years since the I pod, And so what this will

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Speaker 1: do is help it expand a little more quickly UM

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Speaker 1: and uh, you know, probably push into new markets. But

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Speaker 1: beyond that, we're still waiting on more details from Amazon

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Speaker 1: about what it plans to do. Meantime, you've got Apple

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Speaker 1: touting its own health tech offerings. Is this is space

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Speaker 1: an area where you expect to see M and A

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Speaker 1: potentially pick up. Definitely, there's been a huge trend of

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Speaker 1: you know, healthcare companies and tech companies converging. Last year

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Speaker 1: Loan we saw two mega deals with cern or Oracle

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Speaker 1: buying cern Or, a health records company, Microsoft buying Nuanced,

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Speaker 1: a data company. A lot of these deals are about

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Speaker 1: UM access to data UM and so you know, and

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Speaker 1: Google has also signaled ambitions into healthcare. It obviously has

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Speaker 1: devices I do think and and you know, the people

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Speaker 1: I've talked to say that this is going to continue,

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Speaker 1: especially now that Amazon has made this big push. It's

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Speaker 1: a signal to the other tech players to you know,

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Speaker 1: do something to to punch back. All right, Michelle Davis,

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Speaker 1: will continue to watch your reporting on this. Thank you.

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Speaker 1: I want to stay with this story. Now. I'm bringing

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Speaker 1: Christina far principal investor at Omer's Ventures and a former

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Speaker 1: health reporter who had been reporting on Amazon's ambitions and

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Speaker 1: healthcare for years. Christy, A lot of people didn't believe

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Speaker 1: you that Amazon was really going to go deep here,

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Speaker 1: and here they are. What do you make of One

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Speaker 1: Medical being added to the portfolio? Oh, it's just absolutely

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Speaker 1: massive news, Emily, and it's really a long time coming.

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Speaker 1: I first started reporting on Amazon having ambitions in the

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Speaker 1: space back in UM pharmacy was really the first leg

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Speaker 1: of the stool. And then you saw them tackling telemedicine

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Speaker 1: with Amazon Care, and now they've moved into primary care

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Speaker 1: with One Medical. UM not not only primary care in

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Speaker 1: the sense of consumer cash pay primary care, but One

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Speaker 1: Medical has networks and relationships with lots of employers across

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Speaker 1: the country. They have their own medical record that they

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Speaker 1: built from the ground up, so they also have healthcare

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Speaker 1: software that will be amazing for Amazon to access and

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Speaker 1: no doubt kind of part of the reasoning behind this deal. UM. So,

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Speaker 1: I think where they go from here, they're really the

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Speaker 1: sky is the limit and I could see them integrating

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Speaker 1: all of these offerings into something very powerful. What exactly

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Speaker 1: does that look like to you? I mean, are are

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Speaker 1: we going to be getting our blood pressure checked at

431
00:23:53,600 --> 00:23:58,600
Speaker 1: Whole Foods? Do patients even want that? I think all

432
00:23:58,640 --> 00:24:01,360
Speaker 1: of these things are absolute, you possible. I mean, what

433
00:24:01,400 --> 00:24:04,560
Speaker 1: they've fundamentally recognized here is that the future of healthcare

434
00:24:04,680 --> 00:24:07,199
Speaker 1: is hybrid. It's not just tell the medicine. It's not

435
00:24:07,240 --> 00:24:10,000
Speaker 1: just virtual, and it's not brick and mortar either. It's

436
00:24:10,040 --> 00:24:13,000
Speaker 1: something in between, because you can't really do everything from

437
00:24:13,040 --> 00:24:15,040
Speaker 1: home as much as we would love to. Um, But

438
00:24:15,080 --> 00:24:17,080
Speaker 1: eventually you will need to go somewhere to get your

439
00:24:17,080 --> 00:24:19,560
Speaker 1: blood pressure checked if you need it. Um So, yes,

440
00:24:19,640 --> 00:24:22,560
Speaker 1: that's a possibility. Blood pressure checks at Whole Foods? Why not?

441
00:24:22,760 --> 00:24:24,760
Speaker 1: And you know, while we're at it, I could absolutely

442
00:24:24,800 --> 00:24:28,359
Speaker 1: see Whole Foods expanding deeper into pharmacy as well. Um So.

443
00:24:28,480 --> 00:24:30,360
Speaker 1: I just that's just one of the kind of many

444
00:24:30,400 --> 00:24:32,720
Speaker 1: directions that they could go with this with this buy

445
00:24:32,800 --> 00:24:34,520
Speaker 1: up um, I think at the end of the day,

446
00:24:34,560 --> 00:24:38,239
Speaker 1: how I see it is fundamentally about Amazon's obsession with

447
00:24:38,320 --> 00:24:40,960
Speaker 1: the customer. And they've been saying this four decades now,

448
00:24:41,400 --> 00:24:43,160
Speaker 1: you know, first with books, and then they moved into

449
00:24:43,240 --> 00:24:46,440
Speaker 1: other areas of retail and so this this just seems

450
00:24:46,480 --> 00:24:48,560
Speaker 1: so obvious to me because it was really the last

451
00:24:48,600 --> 00:24:52,440
Speaker 1: piece of their retail empire that they hadn't conquered healthcare um,

452
00:24:52,480 --> 00:24:54,840
Speaker 1: so now you know they're they're signal to the industry

453
00:24:54,880 --> 00:24:56,680
Speaker 1: that this is something that they are moving into and

454
00:24:56,720 --> 00:24:59,920
Speaker 1: they're deadly serious about it. There have been some compar

455
00:25:00,000 --> 00:25:05,200
Speaker 1: Harrison's to Kaiser here. Do you think that Amazon could

456
00:25:05,760 --> 00:25:10,560
Speaker 1: could potentially be a competitor to Kaiser? It's a great question.

457
00:25:10,600 --> 00:25:12,840
Speaker 1: I think of Kaiser more in the sense of, you know,

458
00:25:12,880 --> 00:25:16,040
Speaker 1: imagine if Kaiser was starting today, what would they build?

459
00:25:16,400 --> 00:25:18,760
Speaker 1: And that's really kind of the question that Amazon has

460
00:25:18,800 --> 00:25:20,639
Speaker 1: in front of them. They wanted to be one of

461
00:25:20,680 --> 00:25:24,320
Speaker 1: the most innovative healthcare care delivery companies. What would they do?

462
00:25:24,640 --> 00:25:27,520
Speaker 1: And I think that involves having it all, having you know,

463
00:25:27,560 --> 00:25:31,440
Speaker 1: the pharmacy piece, the lab and diagnostic piece, having that

464
00:25:31,440 --> 00:25:33,680
Speaker 1: that primary care piece as well, and then I think

465
00:25:33,720 --> 00:25:36,120
Speaker 1: to you about what they could do with the referral

466
00:25:36,160 --> 00:25:39,399
Speaker 1: networks that they're building with with health systems. How do

467
00:25:39,440 --> 00:25:42,280
Speaker 1: you send patients to the right care at the right time.

468
00:25:42,680 --> 00:25:44,879
Speaker 1: And that really is the promise here, Emily that that

469
00:25:45,280 --> 00:25:47,520
Speaker 1: for years the space has been talking about building a

470
00:25:47,560 --> 00:25:50,760
Speaker 1: true front door to healthcare. You're a patient, you need help.

471
00:25:51,000 --> 00:25:52,840
Speaker 1: What do you do next? How do you access care

472
00:25:52,840 --> 00:25:55,320
Speaker 1: at the right price? And I think that's really what

473
00:25:55,400 --> 00:25:57,840
Speaker 1: Amazon could do, and they could be the first player

474
00:25:57,880 --> 00:26:01,359
Speaker 1: to do it. Well, it hasn't all got and write Amazon.

475
00:26:01,600 --> 00:26:05,560
Speaker 1: For example, that JP Morgan healthcare venture with Berkshire half

476
00:26:05,560 --> 00:26:09,440
Speaker 1: of the way collapsed, it didn't last very long. Meantime,

477
00:26:09,480 --> 00:26:13,000
Speaker 1: you've got Apple pushing into this business. You know, how

478
00:26:13,040 --> 00:26:17,720
Speaker 1: do you see Amazon differentiating itself from let's say an Apple.

479
00:26:17,760 --> 00:26:20,080
Speaker 1: I mean, just yesterday we were asking if Apple might

480
00:26:20,080 --> 00:26:23,399
Speaker 1: buy Peloton, could that be um something of interest to

481
00:26:23,440 --> 00:26:27,240
Speaker 1: Amazon as well? I think Peloton could be of interest

482
00:26:27,280 --> 00:26:30,359
Speaker 1: to both companies. Um. The difference I see with Amazon though,

483
00:26:30,480 --> 00:26:34,160
Speaker 1: is they could really do something in actual healthcare services

484
00:26:34,160 --> 00:26:37,040
Speaker 1: and delivery because they're not afraid of low margin businesses.

485
00:26:37,320 --> 00:26:39,320
Speaker 1: When you look at some of the big tech competitors,

486
00:26:39,359 --> 00:26:42,199
Speaker 1: they're used to kind of sas like software margins. And

487
00:26:42,280 --> 00:26:45,720
Speaker 1: with Apple, it's it's a hardware play um at its core,

488
00:26:46,080 --> 00:26:48,080
Speaker 1: So it doesn't make as much sense to be in

489
00:26:48,119 --> 00:26:51,400
Speaker 1: the actual provision of healthcare that it might for Amazon,

490
00:26:51,440 --> 00:26:55,639
Speaker 1: which is really a supply chain and logistics company. UM. So,

491
00:26:55,680 --> 00:26:58,119
Speaker 1: I think Amazon really has the biggest promise here of

492
00:26:58,200 --> 00:27:00,800
Speaker 1: all of the big tech companies to to do something

493
00:27:00,920 --> 00:27:03,520
Speaker 1: very real. Um, and then you mentioned Haven, which is

494
00:27:03,520 --> 00:27:06,080
Speaker 1: a great point, and that that was not a successful ventia.

495
00:27:06,240 --> 00:27:08,520
Speaker 1: They teamed up with two other big employees that try

496
00:27:08,600 --> 00:27:10,880
Speaker 1: to do something in that in that space. But to me,

497
00:27:11,040 --> 00:27:12,840
Speaker 1: you know, when I was back at the NBC and

498
00:27:12,880 --> 00:27:15,280
Speaker 1: this roll was unveiled, it was kind of felt like

499
00:27:15,320 --> 00:27:17,440
Speaker 1: a little bit of a distraction that maybe the real,

500
00:27:17,880 --> 00:27:20,560
Speaker 1: the real healthcare push would happen behind the scenes. And

501
00:27:20,600 --> 00:27:24,360
Speaker 1: I think that's exactly what's happened. All right, Christina, far

502
00:27:24,640 --> 00:27:27,320
Speaker 1: really interesting to hear perspective here. We'll continue to watch

503
00:27:27,320 --> 00:27:31,280
Speaker 1: where this goes. Investor at Omer's Ventures, thank you for

504
00:27:31,359 --> 00:27:34,800
Speaker 1: joining us. All right, coming up the energy crisis and

505
00:27:34,880 --> 00:27:37,720
Speaker 1: bitcoin mining. We're going to talk to a mining giant

506
00:27:38,160 --> 00:27:42,479
Speaker 1: or scientific about why it had to dump most of

507
00:27:42,520 --> 00:27:46,760
Speaker 1: its bitcoin holdings last month. That's next. This is Bloomberg.

508
00:28:00,040 --> 00:28:02,119
Speaker 1: It's time now for our crypto report, and Bloomberg has

509
00:28:02,160 --> 00:28:05,159
Speaker 1: learned US authorities have arrested a former coin based product

510
00:28:05,240 --> 00:28:09,119
Speaker 1: manager in an alleged insider trading scheme. People familiar with

511
00:28:09,119 --> 00:28:12,640
Speaker 1: the matter say, is Sean Wha He leaked insider information

512
00:28:12,640 --> 00:28:15,600
Speaker 1: to help his brother and a friend by tokens just

513
00:28:15,720 --> 00:28:18,480
Speaker 1: before they were listed on the crypto exchange. I want

514
00:28:18,480 --> 00:28:20,639
Speaker 1: to bring in our crypto contributor Snale Bostic for more

515
00:28:20,680 --> 00:28:23,600
Speaker 1: details on this story, Shanali. What happened? Yeah, this was

516
00:28:23,680 --> 00:28:26,040
Speaker 1: just a massive bloomberg scoop here, Emily, and you have

517
00:28:26,080 --> 00:28:28,919
Speaker 1: both federal prosecutors as well as the SEC taking a

518
00:28:28,960 --> 00:28:31,040
Speaker 1: look at what happened here at coin base with an

519
00:28:31,040 --> 00:28:36,119
Speaker 1: employee who helped oversee listings allegedly tipping off his friend

520
00:28:36,119 --> 00:28:40,640
Speaker 1: and brother. Here about listings, remember when listings of tokens happened,

521
00:28:40,680 --> 00:28:43,760
Speaker 1: that intends to improve liquidity of those tokens and therefore

522
00:28:44,000 --> 00:28:46,480
Speaker 1: is quite material here. I want to point out this

523
00:28:46,560 --> 00:28:49,920
Speaker 1: quote here from the Damien Williams of this um of

524
00:28:50,000 --> 00:28:53,640
Speaker 1: the Manhattan US Attorney's Office, and he's really saying that

525
00:28:53,720 --> 00:28:56,959
Speaker 1: this is a further reminder here that Web three in

526
00:28:57,000 --> 00:29:00,360
Speaker 1: particular here is not a total law free zone. So

527
00:29:00,400 --> 00:29:02,800
Speaker 1: in addition to the SEC here, you now have federal

528
00:29:02,840 --> 00:29:06,640
Speaker 1: prosecutors taking a look at insider trading against the first

529
00:29:06,720 --> 00:29:11,720
Speaker 1: time in crypto currency. So certainly a landmark case that

530
00:29:11,800 --> 00:29:15,440
Speaker 1: affected a coin based employee and coin base itself has

531
00:29:15,680 --> 00:29:18,880
Speaker 1: taken a look at the issue themselves, fraud as fraud

532
00:29:18,880 --> 00:29:21,560
Speaker 1: as fraud there from the Manhattan US attorney. Okay, coin

533
00:29:21,560 --> 00:29:25,280
Speaker 1: Base has been under pressure already because of this crypto route, which,

534
00:29:25,480 --> 00:29:28,880
Speaker 1: by the way, where are we in the markets today?

535
00:29:29,200 --> 00:29:32,040
Speaker 1: Things have actually been looking green, They have been looking

536
00:29:32,040 --> 00:29:33,920
Speaker 1: in green. We are flipping to the green here again

537
00:29:33,960 --> 00:29:36,720
Speaker 1: after a couple of days of weakness. And remember this

538
00:29:36,760 --> 00:29:39,440
Speaker 1: is a month where you've seen crypto actually jump once

539
00:29:39,440 --> 00:29:43,000
Speaker 1: again after declining ending the month uh, ending last month

540
00:29:43,080 --> 00:29:47,160
Speaker 1: less than nineteen thousand dollars in the red. Really, we're

541
00:29:47,280 --> 00:29:50,880
Speaker 1: really had seen a really deep sell off in crypto winter,

542
00:29:51,120 --> 00:29:53,520
Speaker 1: but you are back to seeing gains now back above

543
00:29:53,560 --> 00:29:57,440
Speaker 1: twenty three k. Remember it started last month above thirty k,

544
00:29:57,560 --> 00:29:59,680
Speaker 1: about thirty one k, So we have a while to

545
00:29:59,760 --> 00:30:03,240
Speaker 1: go before recouping all of last month's games, but we

546
00:30:03,280 --> 00:30:07,440
Speaker 1: are indeed to your point climbing back. All right, Shanali,

547
00:30:07,880 --> 00:30:11,000
Speaker 1: thank you, hang on. I want you to join us

548
00:30:11,040 --> 00:30:13,080
Speaker 1: for this next conversation because we're going to talk a

549
00:30:13,080 --> 00:30:15,360
Speaker 1: little bit more about this and the impact of the

550
00:30:15,360 --> 00:30:19,320
Speaker 1: crypto winter on crypto mining. Mike Lovett joining us now.

551
00:30:19,360 --> 00:30:22,000
Speaker 1: He's the CEO and co founder of course, Scientific, which

552
00:30:22,040 --> 00:30:25,920
Speaker 1: is one of the largest publicly traded blockchain data center

553
00:30:25,960 --> 00:30:29,800
Speaker 1: providers and miners of digital assets in North America. Mike,

554
00:30:29,880 --> 00:30:31,560
Speaker 1: thank you so much for joining us. So, first of all,

555
00:30:31,600 --> 00:30:33,840
Speaker 1: what's your take on what's going on in the crypto

556
00:30:33,880 --> 00:30:36,720
Speaker 1: markets right now? Obviously we've seen a lot of red,

557
00:30:36,800 --> 00:30:39,560
Speaker 1: We're seeing a bit of a turnaround. Now. Nobody knows

558
00:30:39,560 --> 00:30:42,520
Speaker 1: if this is a long term, sustainable rally or if

559
00:30:42,560 --> 00:30:45,480
Speaker 1: this is just a blip. Um, I know it's hot

560
00:30:45,480 --> 00:30:48,240
Speaker 1: where you are, but it's certainly feeling cold. If you're

561
00:30:48,280 --> 00:30:50,880
Speaker 1: an investor, what's your take? Well, first, thank you for

562
00:30:50,960 --> 00:30:53,240
Speaker 1: having me, and you're right, it is hot where I am.

563
00:30:53,240 --> 00:30:55,840
Speaker 1: It's about a hundred two degrees here in Austin, Texas.

564
00:30:56,760 --> 00:31:01,000
Speaker 1: Of course, that heat wave is running across the entire South. Um,

565
00:31:01,040 --> 00:31:03,479
Speaker 1: what what I think I would say we really are

566
00:31:03,520 --> 00:31:08,800
Speaker 1: seeing is first of all, a period in our industry

567
00:31:09,480 --> 00:31:13,640
Speaker 1: that happens with many growing and mason industries where in

568
00:31:13,760 --> 00:31:20,160
Speaker 1: fact rationalization and some cleansing occurs. And when you take

569
00:31:20,520 --> 00:31:27,160
Speaker 1: market pressure, macroeconomic pressure, pressure on technology, and the pressure

570
00:31:27,160 --> 00:31:30,480
Speaker 1: in our industries, what you're seeing is a tumultuous period

571
00:31:30,520 --> 00:31:34,400
Speaker 1: of time. That said, and Shenali referenced it. We've seen

572
00:31:34,400 --> 00:31:37,280
Speaker 1: bitcoin come back a bit, and we're very happy to

573
00:31:37,320 --> 00:31:42,000
Speaker 1: see some stability in the pricing of digital assets. Now

574
00:31:42,280 --> 00:31:46,400
Speaker 1: we've seen bitcoin mining companies, which you know they're normally

575
00:31:46,400 --> 00:31:51,000
Speaker 1: big holders, uh, selling their assets. You just dumped a

576
00:31:51,080 --> 00:31:55,480
Speaker 1: huge portion of your bitcoin a month ago. Why and

577
00:31:55,560 --> 00:31:58,320
Speaker 1: do you wish you didn't at this point? Uh? No,

578
00:31:58,520 --> 00:32:02,560
Speaker 1: I I can't say that I regret what we have done. Um,

579
00:32:02,560 --> 00:32:05,920
Speaker 1: but we produce a lot of bitcoin every month or

580
00:32:05,960 --> 00:32:09,120
Speaker 1: currently running at a pace of cooin a month, and

581
00:32:09,240 --> 00:32:12,280
Speaker 1: expect for that to grow considerably over the course of

582
00:32:12,320 --> 00:32:17,160
Speaker 1: this year as we continue to invest in both our

583
00:32:17,200 --> 00:32:22,360
Speaker 1: servers and our infrastructure. There are a couple of considerations

584
00:32:22,360 --> 00:32:26,240
Speaker 1: that are axiomatic when you're running a production business. One is,

585
00:32:26,280 --> 00:32:27,960
Speaker 1: you make sure you have to make sure you've got

586
00:32:28,080 --> 00:32:32,080
Speaker 1: enough capital or cash to pay your bills. Wind and

587
00:32:32,160 --> 00:32:37,080
Speaker 1: we produce bitcoin, but our our obligations are in dollars,

588
00:32:37,120 --> 00:32:39,000
Speaker 1: so we need to make sure we generate enough dollars

589
00:32:39,000 --> 00:32:44,480
Speaker 1: to pay those obligations. Second is, in these distressed or

590
00:32:44,560 --> 00:32:49,640
Speaker 1: tumultuous environments, Uh, liquidity is very important. UH. If you've

591
00:32:49,680 --> 00:32:52,480
Speaker 1: got liquidity, One, you both make sure that your business

592
00:32:52,560 --> 00:32:55,240
Speaker 1: is built to survive. And second, it puts you in

593
00:32:55,280 --> 00:32:58,520
Speaker 1: a position to take advantage of opportunities that arise in

594
00:32:58,600 --> 00:33:02,480
Speaker 1: a distressed marketplace. And so we made a strategic decision

595
00:33:02,960 --> 00:33:06,120
Speaker 1: that it would behoove us to become much more liquid

596
00:33:06,160 --> 00:33:07,600
Speaker 1: on our balance sheet to give us a lot more

597
00:33:07,640 --> 00:33:11,560
Speaker 1: flexibility to take advantage of the situation we see in

598
00:33:11,560 --> 00:33:14,880
Speaker 1: the coming months. Um. Yeah, and the coming months are

599
00:33:14,960 --> 00:33:16,800
Speaker 1: some other issues too, and that is indeed, you guys

600
00:33:16,800 --> 00:33:19,479
Speaker 1: were talking about it before, and it's the weather and

601
00:33:19,560 --> 00:33:21,880
Speaker 1: so the heat wave that you're seeing. How is this

602
00:33:21,920 --> 00:33:26,120
Speaker 1: going to continually impact operations and what can you do

603
00:33:26,200 --> 00:33:29,000
Speaker 1: to get around it? Well, you're right, it is hot.

604
00:33:29,200 --> 00:33:31,560
Speaker 1: It's very hot across the south. It's very hot where

605
00:33:31,560 --> 00:33:35,600
Speaker 1: I live in Austin, Texas. And as as you've probably

606
00:33:35,640 --> 00:33:39,320
Speaker 1: discussed with others before me, one of the beauties of

607
00:33:39,400 --> 00:33:43,120
Speaker 1: our industry is that our production can can be uh

608
00:33:43,280 --> 00:33:47,640
Speaker 1: can be adapted to demand response, and so in situations

609
00:33:47,680 --> 00:33:52,680
Speaker 1: like this, we quite often curtail or down power machines

610
00:33:53,080 --> 00:33:55,479
Speaker 1: to make sure that we're providing the support to the

611
00:33:55,520 --> 00:34:00,400
Speaker 1: grid that's necessary so that consumers and others aren't acted.

612
00:34:00,840 --> 00:34:03,440
Speaker 1: As we sit here in Texas at this very moment,

613
00:34:04,320 --> 00:34:07,320
Speaker 1: we have in fact curtailed our operations for the afternoon

614
00:34:08,160 --> 00:34:12,080
Speaker 1: at the request of air Cut that said, they're roughly

615
00:34:12,200 --> 00:34:16,759
Speaker 1: five thousand excess or reserve megal on hours available of

616
00:34:17,120 --> 00:34:20,640
Speaker 1: five thousand, two hundred to be exact, mega watts available

617
00:34:20,719 --> 00:34:24,719
Speaker 1: right now for the Texas grid. By downpowering, what we

618
00:34:24,840 --> 00:34:27,400
Speaker 1: as a mining industry have done is provided more cushion

619
00:34:28,400 --> 00:34:32,239
Speaker 1: to the system here in Texas. Mm hmm. And I

620
00:34:32,320 --> 00:34:34,480
Speaker 1: also want to talk about liquidity because you see this

621
00:34:34,600 --> 00:34:38,480
Speaker 1: also issue affect others as well. You have Tesla saying,

622
00:34:38,520 --> 00:34:41,279
Speaker 1: for example, that they're selling shouldn't be seen as a

623
00:34:41,360 --> 00:34:44,719
Speaker 1: verdict on bitcoin, but wasn't a concern about liquidity of

624
00:34:44,719 --> 00:34:47,800
Speaker 1: the company overall. But this is so soon after Elon

625
00:34:47,880 --> 00:34:51,280
Speaker 1: Musk also said that Tesla had diamond hands. So how

626
00:34:51,480 --> 00:34:55,720
Speaker 1: do you reconcile both things. That's such a large believer

627
00:34:56,040 --> 00:35:00,919
Speaker 1: and a corporate buyer of bitcoin. Really it could now

628
00:35:01,040 --> 00:35:03,959
Speaker 1: have to sell because of the broader market issues. Well,

629
00:35:04,000 --> 00:35:08,640
Speaker 1: it's although I don't know Tesla's finances, intimately, I do

630
00:35:08,760 --> 00:35:11,480
Speaker 1: happen to own one of their cars, and my son

631
00:35:11,560 --> 00:35:13,440
Speaker 1: was smart at me. And it happens though in their stock.

632
00:35:14,400 --> 00:35:16,879
Speaker 1: But that said, I think it's a smart business move

633
00:35:16,920 --> 00:35:20,399
Speaker 1: to get more liquid in an environment like this. As

634
00:35:20,480 --> 00:35:24,680
Speaker 1: I understand it, both Ellen personally as well as the

635
00:35:24,680 --> 00:35:28,600
Speaker 1: company continue to have considerable holdings. But as I said,

636
00:35:28,719 --> 00:35:32,399
Speaker 1: we decided that it made good business sense to get

637
00:35:32,400 --> 00:35:36,040
Speaker 1: more liquid, and it seems that Tesla decided to do

638
00:35:36,120 --> 00:35:40,000
Speaker 1: the same. These markets have been moving very quickly, the

639
00:35:40,080 --> 00:35:43,680
Speaker 1: conditions have been very uncertain, a lot of volatility, and

640
00:35:43,719 --> 00:35:47,640
Speaker 1: so I understand why they would decide to create a

641
00:35:47,680 --> 00:35:52,080
Speaker 1: little bit more cash on their balanchie All right, Mike Lovett,

642
00:35:52,120 --> 00:35:55,359
Speaker 1: CEO and co founder of Core Scientific and our own

643
00:35:55,400 --> 00:35:59,239
Speaker 1: Chinali boss. Really interesting, Mike, thank you for joining us.

644
00:36:08,080 --> 00:36:11,760
Speaker 1: Amazon is starting to deliver with Rivans, electric vans. Amazon

645
00:36:11,880 --> 00:36:14,560
Speaker 1: has a major investment in the electric car maker and

646
00:36:14,600 --> 00:36:17,480
Speaker 1: plans to use at least a hundred thousand of its

647
00:36:17,560 --> 00:36:20,680
Speaker 1: vans in the United States are at Bludlow sat down

648
00:36:20,719 --> 00:36:24,480
Speaker 1: with Amazon's vice president of transportation to talk about the partnership.

649
00:36:26,000 --> 00:36:27,560
Speaker 1: By the end of the year, we're gonna have thousands

650
00:36:27,560 --> 00:36:30,959
Speaker 1: of electric vehicles delivering to millions of customers in over

651
00:36:31,000 --> 00:36:34,080
Speaker 1: a hundred major US Now, our focus really is an unsustainability.

652
00:36:34,280 --> 00:36:37,759
Speaker 1: Now we bogner with Rivian because we really believe that

653
00:36:37,800 --> 00:36:41,640
Speaker 1: this shed and our mission around decoganization, and we thought

654
00:36:41,680 --> 00:36:44,799
Speaker 1: together we could do something that would reinvent, reimagine what

655
00:36:44,840 --> 00:36:50,520
Speaker 1: a sustainable fleet could look like. Meantime, Rivian CEO R. J.

656
00:36:50,600 --> 00:36:54,719
Speaker 1: Scarne also spoke to add about the rollout because our

657
00:36:54,840 --> 00:36:57,640
Speaker 1: production is continued to ramp and we're building more and

658
00:36:57,680 --> 00:37:01,680
Speaker 1: more vans. Simultaneous to that, Amazon's ramping the number of

659
00:37:01,760 --> 00:37:05,080
Speaker 1: their centers that can accept and gjest all these vans.

660
00:37:05,440 --> 00:37:08,040
Speaker 1: So that's everything from charging infrastructure to making sure the

661
00:37:08,080 --> 00:37:11,840
Speaker 1: drivers already. So it's a really close partnership as we

662
00:37:11,960 --> 00:37:13,759
Speaker 1: plan out. You know what it looks like when you

663
00:37:13,800 --> 00:37:16,600
Speaker 1: go from hundreds to thousands and tens of thousands to

664
00:37:16,800 --> 00:37:20,480
Speaker 1: you know, a hundred thousand bands within their system. How

665
00:37:20,600 --> 00:37:23,959
Speaker 1: is the ramp of riv and Prime Bang going. Because

666
00:37:24,000 --> 00:37:26,759
Speaker 1: at the same time you're ramping all one T introducing

667
00:37:26,760 --> 00:37:30,640
Speaker 1: all one S. Is the van experiencing the same supply

668
00:37:30,719 --> 00:37:34,880
Speaker 1: chain issues that tema vehicles have. The demand and the

669
00:37:34,920 --> 00:37:37,880
Speaker 1: consumer vehicle are are similar in that they have the

670
00:37:37,960 --> 00:37:41,400
Speaker 1: same core technology backbones. So right, the electronic stack, our

671
00:37:41,480 --> 00:37:45,400
Speaker 1: network architecture, elements of the propulsion platform, but obviously the

672
00:37:45,440 --> 00:37:47,400
Speaker 1: rest of its very different the body of the interior,

673
00:37:48,200 --> 00:37:51,000
Speaker 1: so in some of the areas where we're constrained, like semiconductors,

674
00:37:51,400 --> 00:37:53,160
Speaker 1: that has been a challenge over the last six months.

675
00:37:54,800 --> 00:37:57,280
Speaker 1: But with regards to the way the vehicles are produced

676
00:37:57,280 --> 00:37:59,480
Speaker 1: in the plant, we have two separate lines, so it

677
00:37:59,600 --> 00:38:02,240
Speaker 1: almost because has two plants housed on the same campus.

678
00:38:02,960 --> 00:38:05,600
Speaker 1: And so the the R one line produces the truck

679
00:38:05,880 --> 00:38:09,480
Speaker 1: and and now our sub um and the commercial vehicle

680
00:38:09,480 --> 00:38:12,279
Speaker 1: line produces this the seven cubic foot version of it,

681
00:38:12,320 --> 00:38:14,719
Speaker 1: and then there's also a narrower and shorter one, this

682
00:38:14,880 --> 00:38:19,200
Speaker 1: we call the So launching four different vehicles on two

683
00:38:19,239 --> 00:38:22,640
Speaker 1: different lines over the last six months is has certainly

684
00:38:22,640 --> 00:38:26,319
Speaker 1: been challenging with this, uh the supply chain backdrop of course,

685
00:38:26,320 --> 00:38:28,719
Speaker 1: with the pandemic backdrop, but the teams have really come

686
00:38:28,800 --> 00:38:31,080
Speaker 1: together to deliver on that. We've been hyper focused on

687
00:38:31,200 --> 00:38:34,240
Speaker 1: ramp uh you know, living in the plant so to speak,

688
00:38:34,239 --> 00:38:37,319
Speaker 1: to get the production RAMPDUP and we're we're excited about

689
00:38:37,320 --> 00:38:39,280
Speaker 1: the back half of this year. Amazon is a glible

690
00:38:39,280 --> 00:38:42,919
Speaker 1: company and they operate in jurisdictions outside of the US.

691
00:38:43,080 --> 00:38:45,880
Speaker 1: Do you see a future where rivan manufacturers bands in

692
00:38:45,960 --> 00:38:49,640
Speaker 1: the markets where Amazon would hope to deploy them. Yea.

693
00:38:49,760 --> 00:38:52,600
Speaker 1: To start, we have our production facility here in UH

694
00:38:52,680 --> 00:38:55,200
Speaker 1: in Illinois, now far from here, no file, but as

695
00:38:55,200 --> 00:38:57,600
Speaker 1: our commercial business scales, of course, will have to ultimately

696
00:38:57,719 --> 00:39:01,840
Speaker 1: have multiple plants producing commercial dands and to really go

697
00:39:01,960 --> 00:39:05,880
Speaker 1: into those other major markets, having localized or regionally localized

698
00:39:06,080 --> 00:39:08,600
Speaker 1: production is key. So as you think about Europe as

699
00:39:08,640 --> 00:39:10,759
Speaker 1: a market in the long term, will certainly have to

700
00:39:10,840 --> 00:39:14,719
Speaker 1: purt production. Art Bloomberg has reported that Rivian is considering

701
00:39:15,000 --> 00:39:18,920
Speaker 1: around of layoffs or reduction in force, that those roles

702
00:39:19,520 --> 00:39:22,560
Speaker 1: will be outside of manufacturing, that the folks building the

703
00:39:22,640 --> 00:39:25,880
Speaker 1: actual stuff. Have you made any progress on that and

704
00:39:25,960 --> 00:39:29,399
Speaker 1: what is the kind of thinking that. Yeah, that One

705
00:39:29,440 --> 00:39:31,800
Speaker 1: of the things we've talked about even in some of

706
00:39:31,840 --> 00:39:33,680
Speaker 1: our earnings calls, is the need for us to be

707
00:39:34,320 --> 00:39:37,800
Speaker 1: hyper focused on the right set of objectives given the

708
00:39:37,840 --> 00:39:40,759
Speaker 1: economic climate that we're in. So that's ramping our R

709
00:39:40,840 --> 00:39:44,320
Speaker 1: one t R R one s our commercial vehicles in

710
00:39:44,400 --> 00:39:48,120
Speaker 1: our normal facility, that's developing and launching and ramping O

711
00:39:48,239 --> 00:39:51,239
Speaker 1: our two platform. That's building out all of our go

712
00:39:51,360 --> 00:39:54,680
Speaker 1: to market parts of the business. UH and importantly, that's

713
00:39:54,680 --> 00:39:58,000
Speaker 1: also driving profitability into the business or driving a level

714
00:39:58,080 --> 00:40:01,320
Speaker 1: of cost efficiency. And yet so we've gone through the

715
00:40:01,440 --> 00:40:04,359
Speaker 1: rationalization of all the different things we're doing and has

716
00:40:04,400 --> 00:40:07,279
Speaker 1: created operatornies for us to more efficiently structure parts of

717
00:40:07,360 --> 00:40:09,600
Speaker 1: the team, and we're working through that process. These are

718
00:40:09,680 --> 00:40:12,239
Speaker 1: some of the hardest decisions, you know, a leader has

719
00:40:12,280 --> 00:40:15,399
Speaker 1: to take in in running a business, and certainly we're

720
00:40:15,400 --> 00:40:18,000
Speaker 1: trying to be as intentional and as thoughtful in terms

721
00:40:18,080 --> 00:40:20,080
Speaker 1: of what that means for the business, what that means

722
00:40:20,120 --> 00:40:22,440
Speaker 1: for individuals as we work through that process. But as

723
00:40:22,480 --> 00:40:25,080
Speaker 1: you said, this doesn't impact our manufacturing teams. This is

724
00:40:25,560 --> 00:40:27,800
Speaker 1: really more heavily in some or other aspects of the business.

725
00:40:30,160 --> 00:40:32,560
Speaker 1: We're ving CEO R J. Scridge there with our own

726
00:40:32,719 --> 00:40:34,400
Speaker 1: ed Ludlow. You can catch more of that interview, of

727
00:40:34,440 --> 00:40:36,719
Speaker 1: course at Bloomberg dot com. And that does it for

728
00:40:36,800 --> 00:40:39,759
Speaker 1: this edition of Bloomberg Technology Friday. We're gonna be talking

729
00:40:39,880 --> 00:40:43,600
Speaker 1: everything Crypto bit Y CEO Matt Hogan will be joining us,

730
00:40:43,640 --> 00:40:47,960
Speaker 1: including a discussion about their potential lawsuit against the SEC.

731
00:40:48,640 --> 00:40:50,960
Speaker 1: And don't forget to check out our podcast that's always

732
00:40:50,960 --> 00:40:54,160
Speaker 1: wherever you get your podcast. I'm Emily chanting in San Francisco.

733
00:40:54,880 --> 00:40:55,920
Speaker 1: This is Bloomberg,