1 00:00:02,520 --> 00:00:13,680 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 2 00:00:13,720 --> 00:00:17,560 Speaker 1: from coast to coast with Caroline Hyde in New York 3 00:00:17,800 --> 00:00:20,639 Speaker 1: and Edla Lolow in San Francisco. 4 00:00:23,440 --> 00:00:25,040 Speaker 2: This is Bloomberg Tech coming up. 5 00:00:25,079 --> 00:00:28,920 Speaker 3: Tech socks fowards oil prices spike again, stoking fears the 6 00:00:28,920 --> 00:00:32,440 Speaker 3: war in Iran will further crimp energy supplies a fuel inflation. 7 00:00:32,760 --> 00:00:35,120 Speaker 4: Plus, we hear from Michael Dell and the US Energy 8 00:00:35,159 --> 00:00:38,519 Speaker 4: Department Under Secretary for Science about Dell's work with the 9 00:00:38,520 --> 00:00:40,240 Speaker 4: federal government on Ai. 10 00:00:40,760 --> 00:00:44,200 Speaker 3: And new details emerged on Apple's entry into the foldable 11 00:00:44,240 --> 00:00:44,880 Speaker 3: phone category. 12 00:00:44,960 --> 00:00:47,120 Speaker 2: We'll break it down key headlines. 13 00:00:47,159 --> 00:00:49,800 Speaker 3: Iran Supreme Leader has called for the strait of hermuz 14 00:00:50,159 --> 00:00:52,640 Speaker 3: to remain closed and warn that new fronts may be 15 00:00:52,760 --> 00:00:54,440 Speaker 3: opened if the war persists. 16 00:00:54,440 --> 00:00:55,680 Speaker 2: Here with the latest in. 17 00:00:55,640 --> 00:00:59,560 Speaker 3: The Middle East is Bloomberg Jermana Vissecchi live from Dubai. 18 00:00:59,640 --> 00:01:02,120 Speaker 3: And you know those are the two red headlines on 19 00:01:02,160 --> 00:01:06,720 Speaker 3: the terminal, right, the latest in public address from Iran 20 00:01:06,880 --> 00:01:08,200 Speaker 3: Supreme Leader that start there. 21 00:01:08,240 --> 00:01:09,680 Speaker 2: But conscious of course. 22 00:01:09,800 --> 00:01:13,640 Speaker 3: That in real time drone attacks continue across the region, 23 00:01:13,640 --> 00:01:14,440 Speaker 3: including where. 24 00:01:14,280 --> 00:01:17,320 Speaker 5: You are exactly that ed and it is day thirteen 25 00:01:17,360 --> 00:01:19,560 Speaker 5: now of the Iran war with no signs really that 26 00:01:19,600 --> 00:01:22,600 Speaker 5: things are letting up. And you know, as you can see, 27 00:01:22,959 --> 00:01:27,040 Speaker 5: we have actually started working from home today. Many institutions 28 00:01:27,120 --> 00:01:31,080 Speaker 5: around Dubai have actually advised their employees to be working 29 00:01:31,120 --> 00:01:33,759 Speaker 5: from home out of precaution. There hasn't been a formal 30 00:01:33,800 --> 00:01:37,080 Speaker 5: evacuation notice issued, but I think what has happened in 31 00:01:37,080 --> 00:01:40,600 Speaker 5: the last twenty four hours is the intensity of the 32 00:01:40,640 --> 00:01:43,960 Speaker 5: strikes has really taken on a different dimension. And what 33 00:01:44,000 --> 00:01:47,360 Speaker 5: you're seeing here is, you know, the UEE has been 34 00:01:47,440 --> 00:01:51,240 Speaker 5: extremely successful at intercepting many of the projectiles that have 35 00:01:51,280 --> 00:01:54,200 Speaker 5: been headed towards them. Out of all of the projectiles 36 00:01:54,200 --> 00:01:57,320 Speaker 5: that Iran have fired, about two thirds have been directed 37 00:01:57,320 --> 00:01:59,360 Speaker 5: towards the UAE alone, just to give you an idea 38 00:01:59,400 --> 00:02:02,840 Speaker 5: here of Kant. But that's not to say that some 39 00:02:02,880 --> 00:02:06,960 Speaker 5: of the fallen debris isn't causing damage on residential buildings, 40 00:02:07,000 --> 00:02:09,720 Speaker 5: which is exactly the situation that we're in. So out 41 00:02:09,760 --> 00:02:13,120 Speaker 5: of an abundance of precaution, we are, of course broadcasting 42 00:02:13,160 --> 00:02:15,760 Speaker 5: for home. But I will tell you that the tone 43 00:02:15,919 --> 00:02:18,440 Speaker 5: still coming out of Iran is one of defiance. We 44 00:02:18,480 --> 00:02:21,440 Speaker 5: had the first statement a couple of hours ago coming 45 00:02:21,480 --> 00:02:23,600 Speaker 5: through from the new Supreme Leader, the son of the 46 00:02:23,600 --> 00:02:26,560 Speaker 5: prior Supreme Leader, and he was saying that they will 47 00:02:26,720 --> 00:02:30,680 Speaker 5: maintain the closure of the Straits of Hormos. They are 48 00:02:30,800 --> 00:02:32,840 Speaker 5: very aware of the cost that this is inflicted on 49 00:02:32,880 --> 00:02:36,840 Speaker 5: the global economy and global energy infrastructure, and they've also 50 00:02:36,919 --> 00:02:38,840 Speaker 5: warned that new fronts could open up and that they 51 00:02:38,840 --> 00:02:43,000 Speaker 5: will continue to strike on US acids. This coming after 52 00:02:43,080 --> 00:02:46,360 Speaker 5: a very intense twenty four hours of more vessels being 53 00:02:46,440 --> 00:02:50,399 Speaker 5: targeted around the Persian Gulf, more fuel depots also being 54 00:02:50,480 --> 00:02:55,000 Speaker 5: hit set a flame. We've had disruption and oil supply 55 00:02:55,200 --> 00:02:58,680 Speaker 5: and analysts essmates vary, but any way you look at it, 56 00:02:58,720 --> 00:03:01,440 Speaker 5: as long as the straits mains closed, what you're going 57 00:03:01,480 --> 00:03:04,080 Speaker 5: to continue to see is this upward push on the 58 00:03:04,080 --> 00:03:05,119 Speaker 5: price of oil. 59 00:03:05,639 --> 00:03:09,200 Speaker 4: And Jamana I can only imagine the stress that's putting 60 00:03:09,200 --> 00:03:11,960 Speaker 4: you on and all of your colleagues, your family at 61 00:03:11,960 --> 00:03:14,120 Speaker 4: the moment to all to us them a little bit 62 00:03:14,120 --> 00:03:16,440 Speaker 4: about what you think the impact is written large on 63 00:03:17,080 --> 00:03:19,640 Speaker 4: your part of the world. The UAE not an oil force, 64 00:03:19,760 --> 00:03:22,240 Speaker 4: it is a financial force. But how do you think 65 00:03:22,280 --> 00:03:25,200 Speaker 4: that this focus on all prices as well is changing 66 00:03:25,200 --> 00:03:26,240 Speaker 4: the tone in the Middle East? 67 00:03:27,480 --> 00:03:32,080 Speaker 5: Well, Ue obviously some very notable OPEC producer and so 68 00:03:32,320 --> 00:03:33,880 Speaker 5: you know there are two dimensions to this. 69 00:03:34,840 --> 00:03:37,840 Speaker 2: Of course, the focus. 70 00:03:37,480 --> 00:03:42,080 Speaker 5: From an economic perspective is maintaining the flow of oil 71 00:03:42,200 --> 00:03:47,600 Speaker 5: and ensuring that production doesn't get permanently halted or disrupted. 72 00:03:47,680 --> 00:03:50,320 Speaker 5: What has happened is some of the key OPEC producers 73 00:03:50,320 --> 00:03:54,320 Speaker 5: from the region, the likes of Saudi Arabia, Kuwait, iraq Uee, 74 00:03:54,800 --> 00:03:58,080 Speaker 5: have had to manage their production levels simply because they 75 00:03:58,160 --> 00:04:01,240 Speaker 5: don't have any capacity left in their store. They're looking 76 00:04:01,240 --> 00:04:04,160 Speaker 5: for other ways to get that oil out. You've probably 77 00:04:04,200 --> 00:04:06,720 Speaker 5: heard about this East West pipeline in Saudi Arabia that 78 00:04:06,720 --> 00:04:09,320 Speaker 5: Saudi Arabia are leaning on as well. In the UAE, 79 00:04:09,440 --> 00:04:12,760 Speaker 5: there's also Fugera, a pipeline that bypasses the straits as 80 00:04:12,840 --> 00:04:14,040 Speaker 5: options to get the oil out. 81 00:04:14,080 --> 00:04:16,240 Speaker 2: But beyond the oils dimensioned. 82 00:04:15,760 --> 00:04:19,159 Speaker 5: As you say, look these are this is a part 83 00:04:19,240 --> 00:04:23,200 Speaker 5: of the world that has spent decades painting this image 84 00:04:23,440 --> 00:04:29,039 Speaker 5: of a place where financial the financial ecosystem constructure. They've 85 00:04:29,080 --> 00:04:33,720 Speaker 5: created the whole ecosystem around it to bring in capital 86 00:04:33,800 --> 00:04:35,960 Speaker 5: and to bring an investment from abroad. And you even 87 00:04:36,000 --> 00:04:38,080 Speaker 5: saw it when President Trump made a visit almost a 88 00:04:38,160 --> 00:04:40,080 Speaker 5: year ago to this part of the world talking about 89 00:04:40,240 --> 00:04:44,200 Speaker 5: the investments and the opportunities in terms of artificial intelligence 90 00:04:44,200 --> 00:04:47,880 Speaker 5: and the diversification strategies that these economies are pursuing. At 91 00:04:47,960 --> 00:04:52,000 Speaker 5: risk here is that these projects are being severely tested 92 00:04:52,080 --> 00:04:57,479 Speaker 5: by and undermined by the geopolitical developments with really no 93 00:04:57,839 --> 00:04:59,719 Speaker 5: end in sights. And of course this is the reason 94 00:04:59,720 --> 00:05:02,480 Speaker 5: why GCC states have been one for ages trying to 95 00:05:02,520 --> 00:05:05,240 Speaker 5: avoid the scenario and two actively trying to work the 96 00:05:05,279 --> 00:05:06,960 Speaker 5: diplomatic channels to make it stop. 97 00:05:07,839 --> 00:05:10,880 Speaker 4: Emos Jamana Vissecci, We so appreciate you coming live for 98 00:05:11,000 --> 00:05:13,839 Speaker 4: us from Dubai. Stay safe, Thank you. Now look. A 99 00:05:13,920 --> 00:05:18,240 Speaker 4: pro Iranian digital activist group Handala, has claimed credit for 100 00:05:18,320 --> 00:05:21,320 Speaker 4: a cyber attack against medical technology making a Striker Now. 101 00:05:21,360 --> 00:05:24,320 Speaker 4: The attack crippled the company's global operations, with many Striker 102 00:05:24,320 --> 00:05:26,800 Speaker 4: employees around the world unable to work due to the 103 00:05:26,839 --> 00:05:29,040 Speaker 4: breach so all. According to a source and a memoc 104 00:05:29,160 --> 00:05:32,400 Speaker 4: by blombag News, Striker is still investigating the breach and 105 00:05:32,440 --> 00:05:35,320 Speaker 4: doesn't know when its systems will be back online. Joining 106 00:05:35,400 --> 00:05:37,239 Speaker 4: us now are the details? Is bloombag to Patrick Howell 107 00:05:37,240 --> 00:05:41,440 Speaker 4: O'Neil from our cybersecurity team. And it's actually not the 108 00:05:41,480 --> 00:05:45,320 Speaker 4: company Striker that's telling us it's an Iranian impact cyber hack. 109 00:05:45,440 --> 00:05:48,839 Speaker 4: It's Iran itself. How do we know that Striker is 110 00:05:48,880 --> 00:05:49,320 Speaker 4: dealing with this? 111 00:05:50,279 --> 00:05:54,640 Speaker 6: So yesterday a little bit after midnight Eastern time, computers 112 00:05:54,640 --> 00:05:57,520 Speaker 6: began to turn off and strike your offices around the world. 113 00:05:58,120 --> 00:06:00,400 Speaker 6: It was a bit of a frantic scene. Employees trying 114 00:06:00,400 --> 00:06:02,760 Speaker 6: to once they realized what was going on, unplugged the 115 00:06:02,800 --> 00:06:07,239 Speaker 6: computers to save the data, and it interrupted operations around 116 00:06:07,240 --> 00:06:08,200 Speaker 6: the world for the company. 117 00:06:08,200 --> 00:06:10,479 Speaker 2: Employees were sent home. I mean, it was a full stop. 118 00:06:10,560 --> 00:06:13,400 Speaker 6: Data was wiped on the computers and even on phones 119 00:06:13,440 --> 00:06:17,279 Speaker 6: and devices, even personal devices for employees that had you know, 120 00:06:17,360 --> 00:06:21,240 Speaker 6: corporate software on their computers, on their phones rather and 121 00:06:21,279 --> 00:06:24,480 Speaker 6: then Hondala posted taking credit for the attack and saying 122 00:06:24,520 --> 00:06:27,479 Speaker 6: it was in response to a suspected US strike of 123 00:06:27,640 --> 00:06:30,240 Speaker 6: an Iranian school and has said that. 124 00:06:30,240 --> 00:06:31,160 Speaker 7: They have a ton of data. 125 00:06:31,200 --> 00:06:34,760 Speaker 6: But Striker is it appears really recovering and getting back 126 00:06:34,800 --> 00:06:35,360 Speaker 6: on its feet. 127 00:06:36,120 --> 00:06:37,760 Speaker 2: Patrick, this is a case study. 128 00:06:37,839 --> 00:06:41,360 Speaker 3: Right Handala is a pro ranean distractivist group. What can 129 00:06:41,360 --> 00:06:46,080 Speaker 3: you tell us about Iran's broadest strategy cyber strategy? In 130 00:06:46,120 --> 00:06:49,279 Speaker 3: response to what the United States has thus far enacted 131 00:06:49,279 --> 00:06:49,840 Speaker 3: in the region. 132 00:06:50,640 --> 00:06:53,159 Speaker 6: When you think about Iran's cyber strategy, you can easily 133 00:06:53,160 --> 00:06:56,000 Speaker 6: put it into the context of iran strategy overall in 134 00:06:56,040 --> 00:06:59,039 Speaker 6: this war, which is that it's defined by asymmetry. I mean, 135 00:06:59,080 --> 00:07:01,719 Speaker 6: you can think about drones, missiles, the kinetic space for sure, 136 00:07:02,520 --> 00:07:05,760 Speaker 6: and the cyberspaces just like that. They are looking ways, 137 00:07:05,880 --> 00:07:09,039 Speaker 6: looking for ways to impose cost on Israel, on the 138 00:07:09,160 --> 00:07:12,720 Speaker 6: US and on partners of those countries, and so there 139 00:07:12,720 --> 00:07:16,840 Speaker 6: are opportunistically looking for companies with connections, companies that will 140 00:07:16,840 --> 00:07:19,960 Speaker 6: make usplash. There's a big propaganda value for doing things 141 00:07:20,040 --> 00:07:20,320 Speaker 6: like this. 142 00:07:21,480 --> 00:07:22,720 Speaker 2: What the actual. 143 00:07:22,320 --> 00:07:25,679 Speaker 6: Impact is economically, The long term impact of this company 144 00:07:26,040 --> 00:07:29,160 Speaker 6: is to be determined, but it's a major propaganda win 145 00:07:29,240 --> 00:07:33,320 Speaker 6: for Iran, and you can expect continued opportunistic attacks like 146 00:07:33,360 --> 00:07:34,160 Speaker 6: this from the country. 147 00:07:34,920 --> 00:07:37,679 Speaker 3: Bloomberg's Patrick how O'Neil, thank you very much. The conflict 148 00:07:37,680 --> 00:07:40,040 Speaker 3: in Iran and across the Middle East continues to bring 149 00:07:40,080 --> 00:07:43,880 Speaker 3: investor attention back to defense technology. Joining us to discuss 150 00:07:44,200 --> 00:07:47,560 Speaker 3: is Lauren Webster Piper Sandler, Managing director of Investment Banking. 151 00:07:47,600 --> 00:07:49,120 Speaker 2: And that's your expertise. 152 00:07:49,160 --> 00:07:52,480 Speaker 3: It's not just cyber But I look at the Bloomberg 153 00:07:52,560 --> 00:07:55,080 Speaker 3: terminal every morning for the last couple of weeks, and 154 00:07:55,120 --> 00:07:57,040 Speaker 3: the stories that are up there in the realm of 155 00:07:57,080 --> 00:08:00,440 Speaker 3: tech are to do with defense technology. Must have the 156 00:08:00,440 --> 00:08:02,200 Speaker 3: same conversation with clients on a data. 157 00:08:01,960 --> 00:08:06,080 Speaker 8: Basis, absolutely, And I think there's a couple of thematics 158 00:08:06,120 --> 00:08:08,760 Speaker 8: that are really driving investor interest in the category. And 159 00:08:08,800 --> 00:08:11,400 Speaker 8: it certainly started before the current conflict. 160 00:08:11,960 --> 00:08:14,360 Speaker 9: One was this push across. 161 00:08:13,960 --> 00:08:17,680 Speaker 8: The West US, Canada, Europe for sort of sovereign reindustrialization 162 00:08:17,960 --> 00:08:21,200 Speaker 8: of their defense space. A lot of investment pouring into 163 00:08:21,360 --> 00:08:26,160 Speaker 8: we want to buy what we build in our borders. Two, 164 00:08:26,480 --> 00:08:30,240 Speaker 8: more recently, the rotation out of the software sector. The 165 00:08:30,240 --> 00:08:32,880 Speaker 8: sell doun on AI concerns that money hasn't just sat 166 00:08:32,920 --> 00:08:36,360 Speaker 8: on the sidelines, it's been plowing into industrial space is 167 00:08:36,600 --> 00:08:41,280 Speaker 8: like defense technology. And then third third, the current conflict 168 00:08:41,320 --> 00:08:43,720 Speaker 8: is certainly bringing kind of a microscope to the space 169 00:08:44,120 --> 00:08:46,120 Speaker 8: and really getting investor interests there. 170 00:08:47,600 --> 00:08:51,760 Speaker 3: In a war scenario, it's hard to determine what actually 171 00:08:51,800 --> 00:08:54,000 Speaker 3: has changed. Right, One of the data sets we track 172 00:08:54,160 --> 00:08:59,280 Speaker 3: is non classified or declassified dollars that go to the 173 00:08:59,360 --> 00:09:02,920 Speaker 3: legacy for ballistics, right, and they go to the same players, 174 00:09:02,960 --> 00:09:08,760 Speaker 3: the vast majority still to Lockheed, etc. Are you seeing 175 00:09:08,800 --> 00:09:13,040 Speaker 3: actually this new group of largely private companies get real 176 00:09:13,120 --> 00:09:15,120 Speaker 3: tangible traction in this environment. 177 00:09:15,200 --> 00:09:16,000 Speaker 9: Yeah, yeah, certainly. 178 00:09:16,040 --> 00:09:18,800 Speaker 8: And there's a couple pockets that really plug into the 179 00:09:18,800 --> 00:09:21,120 Speaker 8: ballistics space. And you're right, like, we have a huge 180 00:09:21,200 --> 00:09:26,120 Speaker 8: resupply requirement there after expending so many in the current conflict. 181 00:09:27,240 --> 00:09:29,760 Speaker 9: But one is in sort of the launch capability, and. 182 00:09:29,720 --> 00:09:33,800 Speaker 8: There's a lot of investor interest going into particularly private 183 00:09:33,840 --> 00:09:38,400 Speaker 8: companies to be able to fuel the launch capability for 184 00:09:38,520 --> 00:09:41,920 Speaker 8: those ballistics ammunitions. So that's one pocket. The other one 185 00:09:42,040 --> 00:09:44,240 Speaker 8: is actually kind of the picks and shovels around the industry. 186 00:09:44,280 --> 00:09:48,360 Speaker 8: We have a whole manufacturing base we need to reconstitute 187 00:09:48,360 --> 00:09:50,920 Speaker 8: here in Europe saying the same thing, we need to 188 00:09:50,960 --> 00:09:54,320 Speaker 8: have our supply chain within our borders, and so it's 189 00:09:54,400 --> 00:09:57,880 Speaker 8: not just ship subs ballistics, but it is the supply 190 00:09:58,000 --> 00:09:59,400 Speaker 8: chain around that entirely. 191 00:10:00,400 --> 00:10:02,960 Speaker 4: Go a little bit learn not just in defense tech, 192 00:10:03,040 --> 00:10:05,760 Speaker 4: but we think about cybersecurity at this moment as well. 193 00:10:05,760 --> 00:10:08,280 Speaker 4: We were just hearing about what's happened with Stryker. How 194 00:10:08,360 --> 00:10:10,120 Speaker 4: much is that a point of interest? How much of 195 00:10:10,160 --> 00:10:12,920 Speaker 4: people willing to take on what has been some software 196 00:10:12,920 --> 00:10:14,199 Speaker 4: anxiety around that area. 197 00:10:15,200 --> 00:10:18,040 Speaker 8: Yeah, yeah, absolutely, so, I think I think you're right 198 00:10:18,040 --> 00:10:22,719 Speaker 8: around sort of the interest and where it was, particularly 199 00:10:22,760 --> 00:10:23,920 Speaker 8: in the SaaS sell off. 200 00:10:23,920 --> 00:10:25,400 Speaker 9: I mentioned previously. 201 00:10:25,600 --> 00:10:29,920 Speaker 8: Cybersecurity was not immune to the sell down, but we 202 00:10:30,040 --> 00:10:32,240 Speaker 8: see it. I see it as somewhat overblown for a 203 00:10:32,280 --> 00:10:36,040 Speaker 8: few reasons. One is, companies like Strike or others, they 204 00:10:36,080 --> 00:10:38,680 Speaker 8: know the threat is still very real in there, and 205 00:10:38,720 --> 00:10:44,480 Speaker 8: they need effective cybersecurity tooling. So efficacy is super important 206 00:10:44,960 --> 00:10:47,920 Speaker 8: and a lot of the AI solutions are just starting 207 00:10:47,960 --> 00:10:51,160 Speaker 8: to get there. Two is cybersecurity is actually going to 208 00:10:51,200 --> 00:10:53,719 Speaker 8: continue to be a place that wins. It's a beneficiary 209 00:10:54,120 --> 00:10:56,800 Speaker 8: from plugging AI capabilities into it, and so I think 210 00:10:56,840 --> 00:11:01,360 Speaker 8: you're going to see cybersecurity companies continue to do quite well. 211 00:11:01,400 --> 00:11:04,720 Speaker 8: They've done better than the broader software market given both 212 00:11:04,800 --> 00:11:07,520 Speaker 8: the threat and the opportunity from some of the new 213 00:11:07,559 --> 00:11:09,360 Speaker 8: AI technology learn not that. 214 00:11:09,320 --> 00:11:11,840 Speaker 4: Any of that set themselves apart that have managed a 215 00:11:12,040 --> 00:11:14,440 Speaker 4: sell themselves as a platform, not some sort of single 216 00:11:14,440 --> 00:11:16,959 Speaker 4: point of service, but well broadly have intertwined gender to 217 00:11:17,040 --> 00:11:17,960 Speaker 4: AI ahead of the curve. 218 00:11:18,880 --> 00:11:22,120 Speaker 8: Yeah, you certainly saw last week Crowdstrikes earnings come out 219 00:11:22,160 --> 00:11:25,680 Speaker 8: and just really strong performance from the business around this 220 00:11:25,880 --> 00:11:30,360 Speaker 8: platform story. Look, it has end points, millions of endpoints, 221 00:11:30,440 --> 00:11:32,480 Speaker 8: billions of endpoints that it is monitoring, and that is 222 00:11:32,520 --> 00:11:33,239 Speaker 8: a data. 223 00:11:33,040 --> 00:11:36,920 Speaker 9: Mote in the AI in the AI era. Second, they 224 00:11:36,960 --> 00:11:40,320 Speaker 9: are using AI to really drive. 225 00:11:40,160 --> 00:11:43,400 Speaker 8: Security outcomes for their customers, So you saw that bright 226 00:11:43,440 --> 00:11:44,760 Speaker 8: spot in their earnings for sure. 227 00:11:45,160 --> 00:11:47,720 Speaker 2: What are you modeling for to happen in the duration 228 00:11:47,880 --> 00:11:51,800 Speaker 2: of this conflict? What you are as a team discussing. 229 00:11:53,040 --> 00:11:56,120 Speaker 3: Through the lens of different asset prices and how long 230 00:11:56,200 --> 00:11:59,719 Speaker 3: you think, particularly the volatility in oil, Right, that's the 231 00:11:59,800 --> 00:12:02,040 Speaker 3: end opinning of what's going on. But the simple question 232 00:12:02,080 --> 00:12:03,200 Speaker 3: is having anything it's kind of lost. 233 00:12:03,280 --> 00:12:05,360 Speaker 9: Yeah, I wish I had a crystal ball for that. 234 00:12:05,679 --> 00:12:08,480 Speaker 8: But certainly you know there's going to be near term disruption. 235 00:12:08,559 --> 00:12:11,640 Speaker 8: We have seen multiple points of that this year, first 236 00:12:11,640 --> 00:12:13,520 Speaker 8: the AI sell off. 237 00:12:13,320 --> 00:12:15,080 Speaker 9: In the market, now the conflict. 238 00:12:15,360 --> 00:12:19,319 Speaker 8: But I think long term, we see a few opportunities 239 00:12:19,400 --> 00:12:22,160 Speaker 8: with a significant growth outlook, and those continue to be 240 00:12:22,240 --> 00:12:26,680 Speaker 8: defense technology going from largely private to public over time, 241 00:12:26,720 --> 00:12:31,240 Speaker 8: and we're really excited about that and we will see yeah, certainly, 242 00:12:32,040 --> 00:12:35,880 Speaker 8: but in cybersecurity, we expect to see a bounce back 243 00:12:35,920 --> 00:12:37,480 Speaker 8: to as well on Webster. 244 00:12:37,640 --> 00:12:40,000 Speaker 4: It's been great having you on today of Pipistana. Thank 245 00:12:40,040 --> 00:12:43,760 Speaker 4: you for your time. Coming up, another eye popping valuation 246 00:12:43,960 --> 00:12:46,199 Speaker 4: in the AI boom, but going to that private market 247 00:12:46,240 --> 00:12:49,440 Speaker 4: we just discussed Cursor could nearly double its worth to 248 00:12:49,520 --> 00:12:52,720 Speaker 4: fifty billion dollars. That conversation next, this is pretty bad tech. 249 00:13:05,880 --> 00:13:08,600 Speaker 3: Cursor is reportedly in talks and a new funding round 250 00:13:08,600 --> 00:13:11,439 Speaker 3: that would value the company at around fifty billion dollars, 251 00:13:11,480 --> 00:13:14,480 Speaker 3: nearly double its valuation from just last fall, all according 252 00:13:14,480 --> 00:13:17,439 Speaker 3: to sources. So the latest Bloomersons hash Mascaranas broke the 253 00:13:17,480 --> 00:13:19,920 Speaker 3: story with the team, there's a lot of interesting Cursor. 254 00:13:19,960 --> 00:13:22,640 Speaker 3: There has been for quite some time. They've moved quickly, 255 00:13:22,679 --> 00:13:25,120 Speaker 3: grown the product. But this is a big jump in valuation. 256 00:13:25,480 --> 00:13:27,520 Speaker 3: What are the details on the round? Who are the players? 257 00:13:27,679 --> 00:13:27,839 Speaker 2: Yeah? 258 00:13:27,920 --> 00:13:28,760 Speaker 9: Absolutely so. 259 00:13:28,920 --> 00:13:32,160 Speaker 10: Earlier this month we reported that Cursor has topped two 260 00:13:32,160 --> 00:13:36,040 Speaker 10: billion an annualized revenue. That's up from around one hundred 261 00:13:36,080 --> 00:13:38,800 Speaker 10: million in annualized revenue at this time last year. So 262 00:13:38,880 --> 00:13:41,959 Speaker 10: the revenue growth has just been insane, which is basically 263 00:13:42,040 --> 00:13:45,880 Speaker 10: investor catnip in this industry. We've also been watching Cursor 264 00:13:45,960 --> 00:13:49,440 Speaker 10: focus on more in house model efforts, which I would 265 00:13:49,520 --> 00:13:51,360 Speaker 10: expect is a big part of why they need to 266 00:13:51,480 --> 00:13:54,360 Speaker 10: raise new capitals so soon after their last round closed 267 00:13:54,440 --> 00:13:56,560 Speaker 10: just a few months ago. You know, we don't know 268 00:13:56,600 --> 00:13:59,520 Speaker 10: the lead investors just yet, but we do know. I mean, 269 00:13:59,600 --> 00:14:02,720 Speaker 10: just looking at the market, so many companies are hitting 270 00:14:02,760 --> 00:14:06,320 Speaker 10: revenue milestones or even new funding milestones. With yesterday Replet 271 00:14:06,600 --> 00:14:08,880 Speaker 10: announcing that they had raised at nine billion and. 272 00:14:08,920 --> 00:14:11,160 Speaker 4: Natasha, I mean, we've got the reput CEO joining us 273 00:14:11,200 --> 00:14:13,520 Speaker 4: a little late in the show, and it just feels 274 00:14:13,520 --> 00:14:16,559 Speaker 4: that all of these companies are able to thrive simultaneously. 275 00:14:16,600 --> 00:14:19,040 Speaker 4: The fact that all we talk about is Anthropic and 276 00:14:19,080 --> 00:14:22,040 Speaker 4: it's cowork and it's coding a bit capabilities open a 277 00:14:22,120 --> 00:14:23,720 Speaker 4: eyes as well, but still this space. 278 00:14:23,560 --> 00:14:25,720 Speaker 9: For Cursor, Yeah, absolutely. 279 00:14:25,760 --> 00:14:27,920 Speaker 10: I mean it's it's a little bit of a cliche 280 00:14:27,920 --> 00:14:30,440 Speaker 10: that it's not a winner takes all market, because at 281 00:14:30,440 --> 00:14:32,720 Speaker 10: some point it does dip over into it. I mean, 282 00:14:33,000 --> 00:14:36,040 Speaker 10: when Cursor launched its product in twenty twenty three, in 283 00:14:36,120 --> 00:14:39,560 Speaker 10: developers eyes, all the big names of AI were missing. 284 00:14:39,640 --> 00:14:43,000 Speaker 10: Open Ai didn't have a product, Anthropic didn't have a product. 285 00:14:43,000 --> 00:14:46,040 Speaker 10: They were the model layer helping these companies, but once 286 00:14:46,080 --> 00:14:49,840 Speaker 10: they saw Cursor's growth, you know, and other growth. We 287 00:14:50,040 --> 00:14:54,000 Speaker 10: absolutely saw them put more efforts into their own products. 288 00:14:54,440 --> 00:14:56,840 Speaker 10: My expectation is this year, similar to last year, we 289 00:14:56,840 --> 00:14:59,640 Speaker 10: will see consolidation in this space. Last year we saw 290 00:14:59,640 --> 00:15:03,480 Speaker 10: windsor or of a smaller company get acquired by Cognition. 291 00:15:03,680 --> 00:15:06,360 Speaker 10: I am watching the same thing this year because to 292 00:15:06,400 --> 00:15:09,200 Speaker 10: your point, despite the immense growth, there are just so 293 00:15:09,240 --> 00:15:09,920 Speaker 10: many players. 294 00:15:10,320 --> 00:15:12,360 Speaker 3: You know, see a lot of headlines on the Bloomberg right, 295 00:15:12,440 --> 00:15:13,960 Speaker 3: Lovable is one out of Sweden. 296 00:15:14,040 --> 00:15:15,520 Speaker 2: I think that's raised money. 297 00:15:15,880 --> 00:15:18,760 Speaker 3: By the way, Curser didn't reply to comment on our story, 298 00:15:18,880 --> 00:15:21,000 Speaker 3: but I did put on X that Basically, as far 299 00:15:21,000 --> 00:15:24,080 Speaker 3: as I can tell, Replic, Cursor, and clud Code just 300 00:15:24,120 --> 00:15:26,440 Speaker 3: all do the same thing in a slightly different way. 301 00:15:27,120 --> 00:15:31,360 Speaker 3: It is a competitive field, the AI coding agent space. 302 00:15:31,600 --> 00:15:32,720 Speaker 4: It's immensely competitive. 303 00:15:32,760 --> 00:15:35,440 Speaker 10: I mean, think about also this whole idea of people 304 00:15:35,480 --> 00:15:38,280 Speaker 10: being worried that their jobs are going to be automated away. 305 00:15:38,720 --> 00:15:41,360 Speaker 10: You see engineers trying all the products, but they are 306 00:15:41,400 --> 00:15:44,880 Speaker 10: going to pick one at some point, and so right 307 00:15:44,880 --> 00:15:46,720 Speaker 10: now it feels like there's this arm rates to figure 308 00:15:46,720 --> 00:15:50,040 Speaker 10: out which is going to be the preferred coding assistant 309 00:15:50,120 --> 00:15:53,360 Speaker 10: or software development assistant and you know, day by day 310 00:15:53,400 --> 00:15:54,680 Speaker 10: we see these companies go ahead. 311 00:15:54,480 --> 00:15:55,000 Speaker 2: To head on it. 312 00:15:55,720 --> 00:15:59,080 Speaker 4: Natasha, it's great. You're so much the breaking us in 313 00:15:59,120 --> 00:16:02,000 Speaker 4: the private area. Thank you very much. In Dean, Natasha Mascaron, is. 314 00:16:02,000 --> 00:16:12,320 Speaker 3: There software firm at Lassian is joining rivals blaming AI 315 00:16:12,520 --> 00:16:15,680 Speaker 3: for massive staff reductions. The Sydney based company plans to 316 00:16:15,680 --> 00:16:18,440 Speaker 3: cut sixteen hundred jobs, about a tent of. 317 00:16:18,440 --> 00:16:19,520 Speaker 2: Its global workforce. 318 00:16:19,760 --> 00:16:23,200 Speaker 3: The most ready forward has the software spaceed details. It 319 00:16:23,280 --> 00:16:25,400 Speaker 3: is the latest one right. The scale is not perhaps 320 00:16:25,480 --> 00:16:27,520 Speaker 3: the same as what we heard from Block a little 321 00:16:27,560 --> 00:16:30,040 Speaker 3: while back, but you have the details. Why is it 322 00:16:30,120 --> 00:16:31,600 Speaker 3: Lassian doing this and what to doing? 323 00:16:31,680 --> 00:16:31,840 Speaker 2: Well? 324 00:16:31,880 --> 00:16:33,680 Speaker 11: This is the cool thing to do now if you're 325 00:16:33,720 --> 00:16:36,280 Speaker 11: a software company, right, if you want to cut costs, 326 00:16:36,320 --> 00:16:38,640 Speaker 11: you say it's doing to AI. A couple of years 327 00:16:38,680 --> 00:16:41,640 Speaker 11: ago it was that you were flattening management layers, and 328 00:16:42,360 --> 00:16:45,480 Speaker 11: today it's that AI is changing the market. And there 329 00:16:45,520 --> 00:16:48,000 Speaker 11: is some truth to that, right. I mean, Elassian stock 330 00:16:48,160 --> 00:16:51,160 Speaker 11: is down fifty percent on this year, and a lot 331 00:16:51,200 --> 00:16:54,200 Speaker 11: of that is because investors are scared they're not adapting 332 00:16:54,200 --> 00:16:57,400 Speaker 11: to AI correctly. So there is certainly some truth that 333 00:16:57,520 --> 00:17:00,760 Speaker 11: AI fuels these cuts. But it's probably not quite as 334 00:17:00,840 --> 00:17:03,680 Speaker 11: direct as some of these management memos make it out 335 00:17:03,720 --> 00:17:03,960 Speaker 11: to me. 336 00:17:04,280 --> 00:17:07,720 Speaker 4: Oh, the old AI washing debate continues, Brody, and you've 337 00:17:07,800 --> 00:17:09,760 Speaker 4: just been breaking the news last week the Oracle was 338 00:17:09,840 --> 00:17:13,040 Speaker 4: likely to be laying off many thousands of people that 339 00:17:13,160 --> 00:17:15,359 Speaker 4: might be understood, and after their earnings, it feels as 340 00:17:15,359 --> 00:17:18,600 Speaker 4: though they've filed some formal paperwork. All of this seems 341 00:17:18,600 --> 00:17:20,000 Speaker 4: to be building. Are we going to hear it from 342 00:17:20,000 --> 00:17:22,280 Speaker 4: other software names? We've got more earnings coming after the Bell, 343 00:17:22,320 --> 00:17:22,880 Speaker 4: for example. 344 00:17:24,440 --> 00:17:26,680 Speaker 11: I think it's likely that we're going to keep hearing. 345 00:17:26,760 --> 00:17:29,959 Speaker 11: I mean, this whole AI job displacement question has been 346 00:17:30,000 --> 00:17:33,520 Speaker 11: going for years, and it seems like it's only ramping up. Yeah, 347 00:17:33,520 --> 00:17:36,760 Speaker 11: I mean tonight we have Adobe. Notably, they haven't done 348 00:17:36,760 --> 00:17:40,400 Speaker 11: a big scale layoff, and they're firmly in this bucket 349 00:17:40,480 --> 00:17:43,800 Speaker 11: of a company that is kind of really facing a 350 00:17:43,800 --> 00:17:46,280 Speaker 11: lot of skepticism from the market about their ability to 351 00:17:46,320 --> 00:17:47,680 Speaker 11: compete in this AI era. 352 00:17:48,760 --> 00:17:51,840 Speaker 4: Bloomberg's Brody Ford, thank you very much, indeed on all 353 00:17:51,880 --> 00:17:55,360 Speaker 4: things AI, and unfortunately work at displacement. But let's talk 354 00:17:55,400 --> 00:17:58,800 Speaker 4: about Netflix now. Maybe shelling out up to six hundred 355 00:17:58,840 --> 00:18:02,840 Speaker 4: million dollars to Qua afflex AI startup into Positive. That's 356 00:18:02,880 --> 00:18:05,040 Speaker 4: according to sources familiar with the deal. Now the movement 357 00:18:05,080 --> 00:18:07,639 Speaker 4: mark one of the biggest purchases ever for the streaming giant. 358 00:18:08,000 --> 00:18:10,240 Speaker 4: Here with more Blueberg's Luca Sure who covers all things 359 00:18:10,280 --> 00:18:14,359 Speaker 4: media and entertainment, and well, they couldn't get Warner Brothers Discovery, 360 00:18:14,560 --> 00:18:17,880 Speaker 4: so they're going in on AI. And actually it's cash 361 00:18:17,920 --> 00:18:20,400 Speaker 4: portion is less, but there's some quotas they should hit. 362 00:18:21,560 --> 00:18:24,440 Speaker 12: Yeah, I mean the the price was initially described to 363 00:18:24,480 --> 00:18:26,440 Speaker 12: me as six hundred million dollars. I spoke to a 364 00:18:26,520 --> 00:18:29,359 Speaker 12: knot different people where there is an earnout that would 365 00:18:29,600 --> 00:18:32,600 Speaker 12: get to six hundred and perhaps even more. The initial 366 00:18:32,680 --> 00:18:35,640 Speaker 12: upfront money is less than that, but still a big 367 00:18:35,680 --> 00:18:38,480 Speaker 12: payday for a company that nobody even knew existed. Really 368 00:18:38,600 --> 00:18:41,600 Speaker 12: until Netflix announced this deal, you know, Ben Affleck had 369 00:18:41,600 --> 00:18:44,760 Speaker 12: been out there giving some really interesting public statements on AI, 370 00:18:44,880 --> 00:18:46,920 Speaker 12: but it seemed just as sort of a curious filmmaker, 371 00:18:47,000 --> 00:18:48,800 Speaker 12: not as someone who'd started his own company. 372 00:18:49,560 --> 00:18:52,040 Speaker 3: The performance triggers are interesting when you just stop and 373 00:18:52,040 --> 00:18:54,359 Speaker 3: look at what Interpositive does right. The tools that it 374 00:18:54,480 --> 00:19:00,440 Speaker 3: makes allows filmmakers to alter existing footage. Talk a little 375 00:19:00,480 --> 00:19:03,200 Speaker 3: bit about that Lucas. Why it's useful to Netflix. 376 00:19:04,160 --> 00:19:06,359 Speaker 2: Yeah, well, it's useful on a couple of fronts. 377 00:19:06,400 --> 00:19:09,840 Speaker 12: One is, this is an AI company that is founded 378 00:19:09,880 --> 00:19:12,480 Speaker 12: by a filmmaker. It's for filmmakers, And if you listen 379 00:19:12,520 --> 00:19:15,960 Speaker 12: to Ben Affleck talk, you know they don't They don't 380 00:19:16,040 --> 00:19:19,359 Speaker 12: train on a bunch of existing work that's already out there. 381 00:19:19,359 --> 00:19:21,800 Speaker 12: You're not going to run into copyright issues in the 382 00:19:21,840 --> 00:19:24,800 Speaker 12: way that Google, Facebook, Open AI, et cetera. 383 00:19:24,920 --> 00:19:28,280 Speaker 2: Are. You are supposed to upload your movie. 384 00:19:28,080 --> 00:19:30,639 Speaker 12: As you're making it or your TV show, and the 385 00:19:30,720 --> 00:19:33,520 Speaker 12: model will train on what you have put into it 386 00:19:33,560 --> 00:19:36,639 Speaker 12: and can then help you change your shots, adapt your shots, 387 00:19:36,680 --> 00:19:40,800 Speaker 12: take things out, adjust certain backgrounds. And so it's exactly 388 00:19:40,840 --> 00:19:44,159 Speaker 12: what Hollywood should want in an AI product, which I 389 00:19:44,160 --> 00:19:46,640 Speaker 12: think is helpful to Netflix because most people in Hollywood 390 00:19:46,640 --> 00:19:48,840 Speaker 12: are going to be very mistrustful of companies like Netflix 391 00:19:48,880 --> 00:19:50,760 Speaker 12: and Amazon when it comes to AI. They're going to 392 00:19:50,800 --> 00:19:53,359 Speaker 12: assume that they are out to do sort of what 393 00:19:53,400 --> 00:19:56,159 Speaker 12: you were just talking about with with Brody Right job displacement. 394 00:19:57,040 --> 00:20:00,760 Speaker 4: This is a lot of money. How lo is the 395 00:20:00,840 --> 00:20:04,320 Speaker 4: scale of the engineering talent, the scale of the company. 396 00:20:04,440 --> 00:20:08,080 Speaker 4: How long has been Affleck been building this basically in stealth. 397 00:20:09,240 --> 00:20:11,200 Speaker 12: The company is only a couple of years old, the 398 00:20:11,359 --> 00:20:15,200 Speaker 12: staff is still quite sparse. I think the number caught 399 00:20:15,240 --> 00:20:17,520 Speaker 12: a lot of people, including myself, off guard, which is 400 00:20:17,560 --> 00:20:19,439 Speaker 12: one of the reasons why we ended up reporting it 401 00:20:19,480 --> 00:20:21,639 Speaker 12: right that the news that Netflix was buying this company 402 00:20:21,640 --> 00:20:24,000 Speaker 12: had already been announced. What I was most interested in 403 00:20:24,280 --> 00:20:26,160 Speaker 12: was when I heard how much they had paid for it. 404 00:20:26,640 --> 00:20:29,199 Speaker 12: But my understanding is that, you know, the company had 405 00:20:29,240 --> 00:20:31,359 Speaker 12: been out looking to raise money in the private markets 406 00:20:31,359 --> 00:20:33,800 Speaker 12: and was getting evaluation north of a billion dollars, and 407 00:20:33,840 --> 00:20:37,040 Speaker 12: so when they had the opportunity to sell, they didn't 408 00:20:37,080 --> 00:20:38,760 Speaker 12: get a price quite that high, but it had to 409 00:20:38,760 --> 00:20:41,320 Speaker 12: be pretty significant for them to consider doing it and 410 00:20:41,400 --> 00:20:44,360 Speaker 12: essentially become a proprietary technology for Netflix. 411 00:20:45,080 --> 00:20:47,359 Speaker 3: It is interesting we started the segment by saying, like 412 00:20:47,440 --> 00:20:50,760 Speaker 3: for Netflix, biggest acquisition or deal ever and sort of 413 00:20:50,800 --> 00:20:53,639 Speaker 3: completely have forgotten about and look past what happened with 414 00:20:53,680 --> 00:20:55,160 Speaker 3: the Warner Brothers Discovery bid. 415 00:20:55,760 --> 00:20:57,520 Speaker 2: Fold that in where we're at with it. 416 00:20:59,080 --> 00:21:01,160 Speaker 12: Waiting on what it's going to happen with Warner Brothers 417 00:21:01,160 --> 00:21:04,080 Speaker 12: in Paramount right, Netflix is pretty much out. Paramount CEO 418 00:21:04,640 --> 00:21:06,880 Speaker 12: David Ellison was on the Warner Brothers lot this week 419 00:21:06,960 --> 00:21:10,000 Speaker 12: talking to some senior staff. They're trying to get that 420 00:21:10,080 --> 00:21:12,320 Speaker 12: deal approved by the fall so that they don't have 421 00:21:12,359 --> 00:21:14,480 Speaker 12: to start paying that the ticking fee they have that 422 00:21:14,480 --> 00:21:17,240 Speaker 12: would make their acquisition of Warner Brothers even more expensive. 423 00:21:18,560 --> 00:21:21,960 Speaker 3: Bloo invested Kashaw, who is managing editor, leads our screen 424 00:21:22,000 --> 00:21:23,280 Speaker 3: Time team with the reporting. 425 00:21:23,359 --> 00:21:30,480 Speaker 2: Thank you very much, Apple. 426 00:21:30,760 --> 00:21:33,320 Speaker 4: Well, let's entry into the foldable phone category. The long 427 00:21:33,400 --> 00:21:36,920 Speaker 4: awaited device is set to have an iPad like feature 428 00:21:37,320 --> 00:21:40,080 Speaker 4: when it's fully opened, according to sources lets Kmore and 429 00:21:40,080 --> 00:21:42,280 Speaker 4: bloombergs Mark gum And, who of course wrote the story, 430 00:21:42,520 --> 00:21:44,640 Speaker 4: So well, there's going to be a screen on the front, 431 00:21:44,640 --> 00:21:46,600 Speaker 4: but also the internal screen is going to feel more 432 00:21:46,640 --> 00:21:47,480 Speaker 4: like an iPad Mini. 433 00:21:48,480 --> 00:21:49,720 Speaker 7: Yeah, this is pretty exciting. 434 00:21:49,760 --> 00:21:51,960 Speaker 13: So if you've used an iPad Mini, it has about 435 00:21:52,000 --> 00:21:54,600 Speaker 13: an eight inch screen, and now this foldable phone, it 436 00:21:54,600 --> 00:21:56,800 Speaker 13: will be kind of small when it's closed, but when 437 00:21:56,840 --> 00:21:58,840 Speaker 13: you open it up, it'll be the size of an 438 00:21:58,880 --> 00:22:01,320 Speaker 13: iPad Mini. So basically an iPad many you can fit 439 00:22:01,440 --> 00:22:03,760 Speaker 13: in your pocket. And so with that, you're going to 440 00:22:03,760 --> 00:22:07,120 Speaker 13: see an updated version of iOS twenty seven later this year, 441 00:22:07,520 --> 00:22:10,040 Speaker 13: and some of the key features will be iPad like 442 00:22:10,119 --> 00:22:13,720 Speaker 13: layouts for apps that'll run standard iOS. The other cool 443 00:22:13,760 --> 00:22:16,040 Speaker 13: things here is that it'll be a little different from 444 00:22:16,119 --> 00:22:19,880 Speaker 13: past foldables and that it'll have better durability, and then 445 00:22:19,960 --> 00:22:22,560 Speaker 13: it'll also have a reduced crease, so it'll have a 446 00:22:22,640 --> 00:22:25,800 Speaker 13: market leading crease so to speak. Right now, most foldable 447 00:22:25,840 --> 00:22:28,960 Speaker 13: phones you see that line in the middle on the 448 00:22:28,960 --> 00:22:31,080 Speaker 13: Apple version, it'll be much less visible. 449 00:22:31,119 --> 00:22:33,119 Speaker 7: So that's going to be pretty nifty. 450 00:22:33,160 --> 00:22:35,240 Speaker 13: And obviously this is going to be probably north of 451 00:22:35,280 --> 00:22:38,359 Speaker 13: two thousand dollars, so it's obviously a good thing that 452 00:22:38,359 --> 00:22:40,960 Speaker 13: they have the technology a little superior to what's on 453 00:22:41,000 --> 00:22:41,679 Speaker 13: the market today. 454 00:22:42,440 --> 00:22:45,359 Speaker 3: Mark take us inside Apple, not just in the story 455 00:22:45,359 --> 00:22:47,840 Speaker 3: you put out yesterday or overnight, but but all the 456 00:22:47,920 --> 00:22:52,360 Speaker 3: reporting on this product over the last few months. Does 457 00:22:52,440 --> 00:22:55,399 Speaker 3: management feel like this is big for the direction that 458 00:22:55,440 --> 00:22:58,240 Speaker 3: Apple wants to go, that it's going to be one 459 00:22:58,280 --> 00:23:00,720 Speaker 3: of the most high volume products, things like that. 460 00:23:02,000 --> 00:23:03,760 Speaker 7: I actually think it's going to be pretty niche. 461 00:23:04,600 --> 00:23:07,399 Speaker 13: You know, they'll sell some maybe five to ten percent 462 00:23:07,440 --> 00:23:11,720 Speaker 13: of overall iPhone units in a year will be the 463 00:23:12,040 --> 00:23:15,200 Speaker 13: foldable phone. But it is going to be niche from 464 00:23:15,240 --> 00:23:18,240 Speaker 13: the get go, obviously because that price point, which puts 465 00:23:18,240 --> 00:23:20,879 Speaker 13: it at about double what you're paying for sort of 466 00:23:20,920 --> 00:23:25,840 Speaker 13: the baseline profones, and obviously some people like the current candy. 467 00:23:25,480 --> 00:23:27,879 Speaker 7: Bar style, so the slab of glass style. 468 00:23:28,800 --> 00:23:29,000 Speaker 1: You know. 469 00:23:29,000 --> 00:23:31,840 Speaker 13: They're also working on new versions of the regular profone, 470 00:23:31,920 --> 00:23:34,160 Speaker 13: so you'll see an eighteen Pro and eighteen Pro Max 471 00:23:34,160 --> 00:23:34,760 Speaker 13: in the fall. 472 00:23:35,119 --> 00:23:37,720 Speaker 7: Big focus there is on processor and camera. 473 00:23:37,840 --> 00:23:41,520 Speaker 13: The phones will look basically the same as the current versions, 474 00:23:42,160 --> 00:23:44,800 Speaker 13: and then a year later, as early as twenty twenty seven, 475 00:23:45,200 --> 00:23:47,399 Speaker 13: you'll see more of an edge to edge phone with 476 00:23:47,800 --> 00:23:51,919 Speaker 13: more curved glass. In honor of the products twenty year anniversary. 477 00:23:52,359 --> 00:23:54,920 Speaker 4: In Meg's mot Guman always with it will think xactly 478 00:23:55,000 --> 00:23:58,120 Speaker 4: we thank you. Now in Washington, Tech John Dell has 479 00:23:58,160 --> 00:24:01,160 Speaker 4: been holding an event with its biggest customer, the US government. 480 00:24:01,480 --> 00:24:04,120 Speaker 4: Earlier Ed spoke with Dell CEO Michael Dell and under 481 00:24:04,160 --> 00:24:06,240 Speaker 4: Secutuary of Science at the US Department of Energy that 482 00:24:06,320 --> 00:24:10,040 Speaker 4: Stario gil who spoke about using AI to advance scientific discovery. 483 00:24:10,040 --> 00:24:10,520 Speaker 4: Take a listen. 484 00:24:12,920 --> 00:24:14,680 Speaker 3: A lot of the themes that you're trying to get across, 485 00:24:14,680 --> 00:24:16,800 Speaker 3: and I don't know what conclusions you've reached in the 486 00:24:16,880 --> 00:24:19,960 Speaker 3: last hour with your colleagues sat next to you, is 487 00:24:19,960 --> 00:24:23,280 Speaker 3: that either government is getting it right in the United States, 488 00:24:23,359 --> 00:24:26,359 Speaker 3: or they're not in where they're allocating resource, where they're 489 00:24:26,400 --> 00:24:31,760 Speaker 3: deploying policy to build critical national AI infrastructure. What are 490 00:24:31,800 --> 00:24:33,240 Speaker 3: the conclusions you've reached today. 491 00:24:35,119 --> 00:24:39,159 Speaker 14: You know, we're seeing in government a number of the 492 00:24:39,240 --> 00:24:46,080 Speaker 14: projects advanced from the pilot phase to production phase. And certainly, 493 00:24:46,359 --> 00:24:50,639 Speaker 14: you know Dario can speak to the ambitious initiatives, but 494 00:24:51,359 --> 00:24:55,119 Speaker 14: you know we are you know, we have built a 495 00:24:55,160 --> 00:25:02,119 Speaker 14: platform for open scillable systems to enable all the great 496 00:25:02,119 --> 00:25:05,320 Speaker 14: sciences occurring in the national labs and beyond. Certainly we 497 00:25:05,400 --> 00:25:08,719 Speaker 14: have a fabulous example in the DOWT in a cluster 498 00:25:08,920 --> 00:25:14,479 Speaker 14: that we're beginning to deploy, and all this is about 499 00:25:14,560 --> 00:25:21,879 Speaker 14: accelerating science, scientific discovery and progress. And certainly you know 500 00:25:21,960 --> 00:25:25,200 Speaker 14: that's that's a huge parorty. So great to be here 501 00:25:25,280 --> 00:25:29,560 Speaker 14: with our largest customer, and you know, we're very mission 502 00:25:29,600 --> 00:25:36,280 Speaker 14: focused and making sure our solutions are enabling the mission 503 00:25:36,320 --> 00:25:41,000 Speaker 14: wherever it occurs, whether that's in space, out in the 504 00:25:41,040 --> 00:25:45,560 Speaker 14: field and everywhere else does go. 505 00:25:45,640 --> 00:25:48,240 Speaker 3: There are case studies, right we could talk for example 506 00:25:48,480 --> 00:25:52,240 Speaker 3: about the progress you've made with any RSC, but zooming 507 00:25:52,280 --> 00:25:56,600 Speaker 3: out for a moment, if you will, from the DOES perspective, 508 00:25:57,040 --> 00:26:00,119 Speaker 3: why is AI infrastructure now such a core part of 509 00:26:00,119 --> 00:26:03,720 Speaker 3: of national security and energy security implications. 510 00:26:05,440 --> 00:26:09,560 Speaker 15: Well, because we're in the midst of computer revolution, and 511 00:26:09,960 --> 00:26:12,280 Speaker 15: AIS have the heart of that revolution, and it is 512 00:26:12,320 --> 00:26:16,159 Speaker 15: going to transform how science and engineering are practiced in 513 00:26:16,160 --> 00:26:22,280 Speaker 15: our nation. The Monday before Thanksgiving, President Trump sign an 514 00:26:22,280 --> 00:26:26,880 Speaker 15: executive order to launch the Genesis Mission, and within that mission, 515 00:26:27,480 --> 00:26:31,480 Speaker 15: we seek to harness this computer revolution to double the 516 00:26:31,480 --> 00:26:35,359 Speaker 15: productivity and impact of America's trillion dollars a year R 517 00:26:35,400 --> 00:26:38,919 Speaker 15: and D ecosystem and science and engineering are at the 518 00:26:38,960 --> 00:26:43,240 Speaker 15: heart of our progress and capabilities in national security, in discovery, science, 519 00:26:43,359 --> 00:26:47,600 Speaker 15: in energy, in health. And the example of the partnership 520 00:26:48,280 --> 00:26:50,479 Speaker 15: that we have with the Downes system in NURSK in 521 00:26:50,520 --> 00:26:54,919 Speaker 15: one of our seventeen national laboratories exemplifies the power of 522 00:26:55,040 --> 00:26:56,879 Speaker 15: using AI to accelerate. 523 00:26:56,400 --> 00:27:01,600 Speaker 3: Science toge is and mister Dell sent next to you 524 00:27:01,640 --> 00:27:05,480 Speaker 3: delivering supercomputers to the timeline you'd expect. 525 00:27:06,520 --> 00:27:09,280 Speaker 15: Yes, one of the So, for example, in that system 526 00:27:09,359 --> 00:27:12,160 Speaker 15: that we're standing up, we already have an early access 527 00:27:12,160 --> 00:27:15,080 Speaker 15: program where we stood up the first generation of nodes 528 00:27:15,600 --> 00:27:18,920 Speaker 15: of the Nvidia GPUs system is going to be operational 529 00:27:19,640 --> 00:27:23,520 Speaker 15: for the science community mid twenty twenty seven. So I 530 00:27:23,520 --> 00:27:26,439 Speaker 15: think one of the characteristics we're seeing right now is 531 00:27:26,480 --> 00:27:29,000 Speaker 15: that we used to have supercomputing projects that would take 532 00:27:29,040 --> 00:27:31,439 Speaker 15: a decade to build. Now we're building these things in 533 00:27:31,480 --> 00:27:35,760 Speaker 15: two years, and that's a big, big change in terms. 534 00:27:35,560 --> 00:27:38,720 Speaker 2: Of the velocity with which it's moving. One of my 535 00:27:38,800 --> 00:27:43,000 Speaker 2: quotes the government is doing is sorry to interrupt. 536 00:27:42,600 --> 00:27:50,520 Speaker 14: There, please try out leveraging the integrated rack scalable systems 537 00:27:50,520 --> 00:27:53,280 Speaker 14: that we're building for commercial and enterprise. And obviously there 538 00:27:53,320 --> 00:27:58,040 Speaker 14: are enormous buildouts in AI data centers as you'r weld 539 00:27:58,040 --> 00:28:04,080 Speaker 14: aware ed and and so they'll kind of again leveraging 540 00:28:04,119 --> 00:28:08,960 Speaker 14: that open scalable architecture that we built will accelerate the 541 00:28:09,000 --> 00:28:14,080 Speaker 14: government's progress in all of its AI infrastructural requirements. 542 00:28:15,680 --> 00:28:18,440 Speaker 3: That was Dell CEO, Michael Dell and Darry O'Gill, under 543 00:28:18,480 --> 00:28:21,040 Speaker 3: Secretary for Science at the US Department of Energy. Now 544 00:28:21,040 --> 00:28:24,360 Speaker 3: coming up, startup Sunday raise one hundred and sixty five 545 00:28:24,400 --> 00:28:28,119 Speaker 3: million as it works toward bringing dishwashing and laundry folding 546 00:28:28,200 --> 00:28:31,600 Speaker 3: robots into your home. Speak to the CEO. 547 00:28:31,680 --> 00:28:33,000 Speaker 2: Next. This is Wimberg Tech. 548 00:28:38,920 --> 00:28:42,440 Speaker 4: AI coding startup replet has raised four hundred million dollars 549 00:28:42,480 --> 00:28:44,320 Speaker 4: in a Series D round led by B to B 550 00:28:44,400 --> 00:28:47,680 Speaker 4: investor Georgian founding the company at nine million dollars. Joining 551 00:28:47,760 --> 00:28:50,320 Speaker 4: us to discuss the latest funding is Replet CEO. I'm 552 00:28:50,400 --> 00:28:53,040 Speaker 4: Jad Masad. Wonderful to have you with us, A'm Janden. 553 00:28:53,440 --> 00:28:55,200 Speaker 4: What's the money going to be used for? Because you're 554 00:28:55,520 --> 00:28:57,320 Speaker 4: building it up in a swift formation. 555 00:28:59,400 --> 00:29:03,400 Speaker 16: Yeah, there's a lot of product innovation to be done, 556 00:29:03,560 --> 00:29:07,880 Speaker 16: so we're hiring more people in R and D. You know, 557 00:29:07,960 --> 00:29:13,760 Speaker 16: Replet is kind of expanding beyond just code. We think 558 00:29:13,800 --> 00:29:18,480 Speaker 16: that code has become the universal interface for knowledge work. 559 00:29:19,080 --> 00:29:23,719 Speaker 16: So we're seeing customers of ours. They're not just building apps, 560 00:29:23,720 --> 00:29:27,600 Speaker 16: although that's a big use case. They're building automations that 561 00:29:27,680 --> 00:29:30,840 Speaker 16: are building slide decks, they're building marketing materials. They are 562 00:29:30,840 --> 00:29:34,600 Speaker 16: doing all sorts of things with a replets. So we're 563 00:29:34,640 --> 00:29:38,600 Speaker 16: expanding that, but we're also expanding internationally. We're seeing a 564 00:29:38,600 --> 00:29:41,720 Speaker 16: lot of excitement around Replet and places like in Japan, 565 00:29:42,920 --> 00:29:45,400 Speaker 16: South Korea, I'll say the Middle East. We have this 566 00:29:45,440 --> 00:29:48,520 Speaker 16: big partnership with out Arabia and that's growing across the 567 00:29:48,560 --> 00:29:52,520 Speaker 16: Middle East, but also Asia. We were just in India for 568 00:29:52,600 --> 00:29:55,959 Speaker 16: the AI summit there and there's tremendous excitement there. We've 569 00:29:56,000 --> 00:29:58,680 Speaker 16: partnered with a Razor Pay it was also a customer, 570 00:29:59,200 --> 00:30:03,720 Speaker 16: and we're bringing kind of the raplets superpower to developers 571 00:30:03,720 --> 00:30:04,520 Speaker 16: in India. 572 00:30:04,640 --> 00:30:05,840 Speaker 2: So there's a lot to do. 573 00:30:06,760 --> 00:30:08,640 Speaker 4: I have to do the follow up of if you 574 00:30:08,720 --> 00:30:12,080 Speaker 4: are with significant exposure and growing in Saudi Arabia, how 575 00:30:12,120 --> 00:30:15,040 Speaker 4: have things been in the last couple of weeks? Is 576 00:30:15,080 --> 00:30:18,920 Speaker 4: that still growing as quickly as you anticipate it is? 577 00:30:19,040 --> 00:30:19,360 Speaker 2: It is? 578 00:30:19,520 --> 00:30:23,520 Speaker 16: We haven't seen any any disruption to growth or day 579 00:30:23,520 --> 00:30:28,920 Speaker 16: to day operations. Obviously, wish the best of the people 580 00:30:28,960 --> 00:30:31,920 Speaker 16: there and hope things helpe we get to pece system 581 00:30:31,920 --> 00:30:32,560 Speaker 16: as possible. 582 00:30:33,920 --> 00:30:37,680 Speaker 2: I'm dad. You may see this is not fair. 583 00:30:37,720 --> 00:30:43,040 Speaker 3: But if you put replt alongside Cursor, right alongside poor Code, 584 00:30:43,240 --> 00:30:45,920 Speaker 3: there are different functions. There are different strengths, but the 585 00:30:46,320 --> 00:30:47,960 Speaker 3: base functions are similar. 586 00:30:48,040 --> 00:30:48,240 Speaker 2: Right. 587 00:30:48,480 --> 00:30:50,880 Speaker 3: You actually also have a lot of investors in common 588 00:30:51,440 --> 00:30:55,080 Speaker 3: with Cursor. How do you manage that and just basically 589 00:30:55,120 --> 00:30:57,880 Speaker 3: say no, like no, this is what Replet does. This 590 00:30:57,920 --> 00:31:00,680 Speaker 3: is how we're different, This is our motor, what we're 591 00:31:00,680 --> 00:31:01,360 Speaker 3: doing best. 592 00:31:02,840 --> 00:31:06,360 Speaker 16: Yeah, So if you look at our customers, our customers 593 00:31:06,760 --> 00:31:10,680 Speaker 16: buy Cursor buy clod code, but they buy them for 594 00:31:10,800 --> 00:31:16,320 Speaker 16: their core engineering teams. What are the rest of the 595 00:31:16,360 --> 00:31:22,280 Speaker 16: company using code? Is democratized now anyone can build applications, 596 00:31:22,320 --> 00:31:26,760 Speaker 16: can build software, and the most innovative companies in the 597 00:31:26,760 --> 00:31:28,800 Speaker 16: world are opening their eyes to that and saying we 598 00:31:28,840 --> 00:31:31,440 Speaker 16: don't want to be left behind. We want our product 599 00:31:31,440 --> 00:31:34,360 Speaker 16: managers to be able to ship software. We want our 600 00:31:34,400 --> 00:31:37,800 Speaker 16: designers to prototype and get in front of customers as 601 00:31:37,840 --> 00:31:38,760 Speaker 16: early as possible. 602 00:31:39,800 --> 00:31:43,400 Speaker 2: And that's not just startups. This is like we're talking about. 603 00:31:43,440 --> 00:31:46,160 Speaker 16: You know, eighty five percent of the Fortune five hundred 604 00:31:46,240 --> 00:31:51,080 Speaker 16: companies are using replet and in the primary departments is 605 00:31:51,120 --> 00:31:56,280 Speaker 16: primarily outside of engineering, so we don't really compete with them. 606 00:31:56,760 --> 00:31:59,280 Speaker 2: Had to head on deals. 607 00:32:00,720 --> 00:32:05,000 Speaker 3: The benchmark right now in Silicon Valley. Again, you can 608 00:32:05,000 --> 00:32:07,960 Speaker 3: tell me if I'm wrong, but it's ars. You know 609 00:32:08,120 --> 00:32:11,080 Speaker 3: how real these businesses are coming in? How quickly take 610 00:32:11,160 --> 00:32:13,600 Speaker 3: us inside report? How's things going financially? 611 00:32:14,720 --> 00:32:18,040 Speaker 2: Yeah, I mean last year we grew one hundred UCTs. 612 00:32:19,360 --> 00:32:21,400 Speaker 16: We went from two point five million to two hundred 613 00:32:21,440 --> 00:32:25,200 Speaker 16: and fifty million dollars. I said last year that it 614 00:32:25,280 --> 00:32:28,520 Speaker 16: looks like we're going to be headed to a billion 615 00:32:28,720 --> 00:32:33,480 Speaker 16: arr in twenty twenty six and we're on track. So 616 00:32:33,920 --> 00:32:37,520 Speaker 16: I think that's that's really exciting. But we also spend 617 00:32:37,520 --> 00:32:41,520 Speaker 16: a lot of time just making sure enterprise adoption is 618 00:32:42,080 --> 00:32:44,920 Speaker 16: going as planned because you know you mentioned Cursor and 619 00:32:44,920 --> 00:32:48,240 Speaker 16: clod Code, they're going after established markets. What we're telling 620 00:32:48,360 --> 00:32:51,560 Speaker 16: enterprise is that now you need to decentralize innovation. This 621 00:32:51,640 --> 00:32:55,400 Speaker 16: is we're creating a new category of you know, anyone 622 00:32:55,440 --> 00:32:59,000 Speaker 16: can code the enterprise. So so the thing we're most 623 00:32:59,000 --> 00:33:02,960 Speaker 16: proud of recent as the adoption in the enterprise. 624 00:33:04,200 --> 00:33:06,360 Speaker 3: I'm je Masad Replet CEO. It's great to have you 625 00:33:06,440 --> 00:33:08,840 Speaker 3: back on Bloomberg Tech. Thank you very much. We have 626 00:33:08,920 --> 00:33:11,960 Speaker 3: more funding news. Robotics firm Sunday has reached a nearly 627 00:33:12,040 --> 00:33:15,120 Speaker 3: one point two billion dollar valuation following one hundred and 628 00:33:15,160 --> 00:33:17,880 Speaker 3: sixty five million dollar funding round. The startup is using 629 00:33:17,880 --> 00:33:21,239 Speaker 3: AI to develop a robot that can do housework and 630 00:33:21,280 --> 00:33:25,080 Speaker 3: plans to launch a testing program later this year. Sunday's 631 00:33:25,120 --> 00:33:28,800 Speaker 3: co founder and CEO, Tony Job, joins us now in studio. 632 00:33:28,960 --> 00:33:32,840 Speaker 2: We just showed some video of Memo. You weren't able 633 00:33:32,880 --> 00:33:33,600 Speaker 2: to bring Memo with you. 634 00:33:33,680 --> 00:33:37,720 Speaker 3: It's quite quite big and quite heavy, but it's an 635 00:33:37,760 --> 00:33:39,000 Speaker 3: interesting use case. 636 00:33:40,800 --> 00:33:42,120 Speaker 2: What are you going to use the funding for. 637 00:33:42,440 --> 00:33:44,520 Speaker 3: I guess in the first instance, to kind of accelerate 638 00:33:44,560 --> 00:33:46,760 Speaker 3: this testing program so that I can have one in 639 00:33:46,760 --> 00:33:49,080 Speaker 3: my home, or anyone watching Bloombo Tech right now can say, 640 00:33:49,160 --> 00:33:50,360 Speaker 3: all right, I'll get one of those. 641 00:33:50,640 --> 00:33:51,520 Speaker 2: Yeah, one hundred percent. 642 00:33:51,680 --> 00:33:53,880 Speaker 17: I think the bid of program is a really great 643 00:33:53,920 --> 00:33:57,479 Speaker 17: way for us to all kind of exercise our muscle. 644 00:33:57,720 --> 00:34:00,680 Speaker 17: I've deployed these robusts into real peoples toms, which is 645 00:34:00,720 --> 00:34:03,280 Speaker 17: the first time these general purpose robusts are deployed to 646 00:34:03,480 --> 00:34:06,880 Speaker 17: like real homes as well as decleaning the research focus 647 00:34:07,000 --> 00:34:07,960 Speaker 17: that we have internally. 648 00:34:08,120 --> 00:34:10,080 Speaker 3: I chair my family in town and they're here to 649 00:34:10,120 --> 00:34:12,080 Speaker 3: watch the show today and they know full well that 650 00:34:12,680 --> 00:34:14,759 Speaker 3: you know in the living room is the laundry and 651 00:34:14,800 --> 00:34:17,440 Speaker 3: it's not folded because of the difficulty in training me 652 00:34:17,960 --> 00:34:21,279 Speaker 3: to do it. What is the technical challenge on the 653 00:34:21,280 --> 00:34:25,759 Speaker 3: hardware side, but also software side, dexterity to get the 654 00:34:25,880 --> 00:34:27,320 Speaker 3: robot to fold laundry? 655 00:34:27,600 --> 00:34:29,600 Speaker 17: Yeah, yeah, I think the breakthrough is really about the 656 00:34:29,640 --> 00:34:32,200 Speaker 17: AI that is behind it. You think about GENI as 657 00:34:32,239 --> 00:34:35,080 Speaker 17: a AI that generate images and texts, but we use 658 00:34:35,120 --> 00:34:38,839 Speaker 17: it to generate actions. I think one of the most 659 00:34:38,840 --> 00:34:41,520 Speaker 17: important part is how we gather the data to train 660 00:34:41,600 --> 00:34:45,279 Speaker 17: this really powerful AI. And what we do is we 661 00:34:45,360 --> 00:34:49,399 Speaker 17: develop this glove club memory gloves, and essentially we give 662 00:34:49,440 --> 00:34:51,920 Speaker 17: it to people so that they can do the laundry 663 00:34:51,920 --> 00:34:54,360 Speaker 17: in their own homes, and we capture that data to 664 00:34:54,440 --> 00:34:56,399 Speaker 17: train our robusts to do the same thing. 665 00:34:57,480 --> 00:35:01,759 Speaker 4: Skill capture gloves, So basically that's giving the data, the 666 00:35:01,840 --> 00:35:04,279 Speaker 4: underlying data so that the robot can learn. This was 667 00:35:04,320 --> 00:35:06,439 Speaker 4: sort of a breakthrough that you made in academia, Tony, 668 00:35:06,480 --> 00:35:08,160 Speaker 4: But I'm interested as to how the beta is going 669 00:35:08,160 --> 00:35:10,440 Speaker 4: and how many people actually want them in their homes. 670 00:35:11,080 --> 00:35:12,359 Speaker 2: Yeah, we have a huge way list. 671 00:35:12,640 --> 00:35:15,160 Speaker 17: We have more than three thousand people who spend like 672 00:35:15,200 --> 00:35:18,560 Speaker 17: thirty minute like filling up this whole sand of forum, 673 00:35:19,040 --> 00:35:21,520 Speaker 17: and we're actually in the process of selecting people who 674 00:35:21,560 --> 00:35:23,080 Speaker 17: will be participating in it this year. 675 00:35:24,000 --> 00:35:27,160 Speaker 4: It's all about getting robots in the wild. Now, I'm 676 00:35:27,200 --> 00:35:30,000 Speaker 4: interested Tony as to We've been watching a lot of 677 00:35:30,040 --> 00:35:33,959 Speaker 4: these videos basically on fast forward, they're going at four 678 00:35:34,000 --> 00:35:36,440 Speaker 4: times the speed than they actually do. What do you 679 00:35:36,480 --> 00:35:38,759 Speaker 4: think your biggest learning will be in the wild. Where 680 00:35:38,760 --> 00:35:40,719 Speaker 4: do you think there will be issues? Where do you 681 00:35:40,760 --> 00:35:44,080 Speaker 4: think they'll really overcome a lot of the concerns people have. 682 00:35:45,280 --> 00:35:49,120 Speaker 17: Yeah, I think for us, we're actually not super worried 683 00:35:49,120 --> 00:35:52,560 Speaker 17: about speed because essentially, if your laundry, if all your 684 00:35:52,560 --> 00:35:55,560 Speaker 17: houseworks can be done by the robot, it's essentially like 685 00:35:55,800 --> 00:35:57,600 Speaker 17: you go to work and you come back to work 686 00:35:57,800 --> 00:36:00,879 Speaker 17: after eight hours and all the work is done. So 687 00:36:00,920 --> 00:36:03,120 Speaker 17: the part that we're really dis thing is we do 688 00:36:03,200 --> 00:36:07,360 Speaker 17: not actually need to train on data that is collective 689 00:36:07,360 --> 00:36:10,080 Speaker 17: from the robot because we have this whole fleet of 690 00:36:10,239 --> 00:36:13,759 Speaker 17: memory developers, so our interest and our users interests are 691 00:36:13,760 --> 00:36:17,080 Speaker 17: almost perfectly aligned. We want feedbacks, we don't necessarily need 692 00:36:17,400 --> 00:36:18,440 Speaker 17: the data from your homes. 693 00:36:18,480 --> 00:36:21,279 Speaker 3: Bloomberg Tech executive producer Jackie Lopez has come in with 694 00:36:21,400 --> 00:36:23,319 Speaker 3: probably the most important question of the day, which is 695 00:36:23,600 --> 00:36:24,080 Speaker 3: will it. 696 00:36:23,960 --> 00:36:26,840 Speaker 2: Come with the hat? And why does Memo have a hat? 697 00:36:27,600 --> 00:36:30,960 Speaker 3: For me, probably a more important question, particularly because it's 698 00:36:30,960 --> 00:36:33,720 Speaker 3: not bipedal, right, is what are you going to charge 699 00:36:33,760 --> 00:36:34,000 Speaker 3: for it? 700 00:36:34,040 --> 00:36:36,040 Speaker 2: And how are you going to charge? What's the model? 701 00:36:36,360 --> 00:36:38,240 Speaker 17: Yeah, I think the way we think about the robot 702 00:36:38,280 --> 00:36:41,279 Speaker 17: we build is almost a perfect example of MVP, which 703 00:36:41,320 --> 00:36:44,160 Speaker 17: is a minimum viable product that we try to simplify. 704 00:36:44,200 --> 00:36:45,600 Speaker 2: We try to lower the cost. 705 00:36:46,120 --> 00:36:48,000 Speaker 17: So in the beginning when we sell it, we're going 706 00:36:48,000 --> 00:36:50,480 Speaker 17: to sell it for around ten kuss dollar. But just 707 00:36:50,600 --> 00:36:53,320 Speaker 17: like personal computers, just like phones, so we'll get cheaper 708 00:36:53,320 --> 00:36:53,839 Speaker 17: over time. 709 00:36:53,960 --> 00:36:54,960 Speaker 2: But it comes with the hat. 710 00:36:55,160 --> 00:36:59,720 Speaker 17: Yes, the hat is really interesting because we essentially imagine 711 00:36:59,719 --> 00:37:03,040 Speaker 17: a world that the robots are everywhere, the ubiquitous rates, 712 00:37:03,080 --> 00:37:06,040 Speaker 17: and we really want to make eye contact with the robot. 713 00:37:06,400 --> 00:37:08,560 Speaker 17: And instead of putting a camera us inside the eyes 714 00:37:08,600 --> 00:37:12,480 Speaker 17: of the robot, we essentially hide it underneath the hat, 715 00:37:12,760 --> 00:37:14,680 Speaker 17: so it looks a lot more natural. You can make 716 00:37:14,719 --> 00:37:16,400 Speaker 17: eye contact with it. 717 00:37:16,400 --> 00:37:17,080 Speaker 2: It's cute. 718 00:37:17,360 --> 00:37:20,680 Speaker 4: Tony Jiao, thank you, CEO Sunday, come back. Tell us 719 00:37:20,680 --> 00:37:30,480 Speaker 4: how that testing in the wild continues. Investors have been 720 00:37:30,600 --> 00:37:34,400 Speaker 4: clamoring for early access to share private companies like SpaceX 721 00:37:34,480 --> 00:37:37,640 Speaker 4: before their IPOs, but they're turning to the wild world 722 00:37:37,640 --> 00:37:40,360 Speaker 4: of special purpose vehicles or SPVs. They act kind of 723 00:37:40,400 --> 00:37:43,760 Speaker 4: as a middle man structure whose main asset is shares 724 00:37:43,800 --> 00:37:46,520 Speaker 4: of other private companies, but there are some questions around 725 00:37:46,520 --> 00:37:49,000 Speaker 4: who really owns the stock or if it even exists. 726 00:37:49,040 --> 00:37:51,880 Speaker 4: Bloomberg's Bailey Lipschaltz joins us some more, and you really 727 00:37:51,920 --> 00:37:55,520 Speaker 4: do this wonderful deep dive. Look, not every SPV is 728 00:37:55,800 --> 00:37:59,200 Speaker 4: born equal. Some are more questionable than others. But what's 729 00:37:59,239 --> 00:38:02,480 Speaker 4: amazing is that sort of co founders of Andrail or 730 00:38:02,560 --> 00:38:07,600 Speaker 4: the hottest IBO candidates are getting sent well SPV terms 731 00:38:07,640 --> 00:38:10,120 Speaker 4: that they know they haven't issued shares too. 732 00:38:10,200 --> 00:38:11,640 Speaker 2: They know they haven't issued shares too. 733 00:38:11,680 --> 00:38:15,280 Speaker 18: They're very They're a company that is very outspoken about 734 00:38:15,320 --> 00:38:18,000 Speaker 18: pushing back against these and just kind of the potential fees, 735 00:38:18,200 --> 00:38:21,719 Speaker 18: and they're if you go on X Palmer and Matt 736 00:38:21,760 --> 00:38:24,239 Speaker 18: are very vocal about not wanting this to be a thing. 737 00:38:24,280 --> 00:38:26,719 Speaker 18: And the big question is if there's a market, why 738 00:38:26,760 --> 00:38:28,840 Speaker 18: aren't people investing in it? And it goes to the 739 00:38:28,880 --> 00:38:31,799 Speaker 18: whole debate about capitalism. Right, if you are willing to 740 00:38:31,920 --> 00:38:33,759 Speaker 18: take on these fees and willing to take on the 741 00:38:33,840 --> 00:38:36,560 Speaker 18: risk to buy Androil at two and a half times 742 00:38:36,840 --> 00:38:39,560 Speaker 18: its latest funding round and pay a fee to a manager. 743 00:38:39,760 --> 00:38:42,839 Speaker 18: From the management perspective, why not they're offering the deal 744 00:38:42,880 --> 00:38:46,000 Speaker 18: And from the investor perspective, hopefully you did your due diligence. 745 00:38:47,080 --> 00:38:50,880 Speaker 3: Bailey to quote the Great Shrek, and much like ogres, 746 00:38:51,600 --> 00:38:53,120 Speaker 3: SPVs can have layers. 747 00:38:54,040 --> 00:38:55,760 Speaker 2: That was good layers, Donkey. 748 00:38:56,160 --> 00:39:00,080 Speaker 3: And that within it buries a very complicated web of 749 00:39:00,320 --> 00:39:04,959 Speaker 3: extra fees and what Carol was talking about understanding within 750 00:39:05,040 --> 00:39:07,880 Speaker 3: those layers, if the stock's even there a tool in 751 00:39:07,920 --> 00:39:11,399 Speaker 3: the end, if there is actually ownership of real cap 752 00:39:11,440 --> 00:39:14,880 Speaker 3: table position in a private company. 753 00:39:14,960 --> 00:39:16,960 Speaker 18: Yeah, and I think that goes back to the question 754 00:39:17,080 --> 00:39:20,279 Speaker 18: of if you're invested in a co invest on the 755 00:39:20,320 --> 00:39:23,920 Speaker 18: cap table in an SPV, a so called clean SPV, congratulations, 756 00:39:23,920 --> 00:39:26,040 Speaker 18: That makes all the sense in the world. If you're 757 00:39:26,080 --> 00:39:29,480 Speaker 18: being pitched an email that's saying, hey, pay me two 758 00:39:29,520 --> 00:39:33,160 Speaker 18: and ten for access to this SPV. But that's on 759 00:39:33,239 --> 00:39:36,600 Speaker 18: top that SPV is investing in another SPVs that's charging 760 00:39:36,840 --> 00:39:39,760 Speaker 18: another to and ten, and that's investing in another SPV 761 00:39:39,840 --> 00:39:40,960 Speaker 18: that's charging two and twenty. 762 00:39:41,160 --> 00:39:42,120 Speaker 2: Well, congratulations. 763 00:39:42,120 --> 00:39:44,400 Speaker 18: Even if those shares do exist, which there are questions 764 00:39:44,440 --> 00:39:47,080 Speaker 18: around that, if there is a liquidity event like an 765 00:39:47,120 --> 00:39:49,839 Speaker 18: IPO or a sale, you may be thinking that you're 766 00:39:49,880 --> 00:39:52,239 Speaker 18: only paying the initial fees, but in reality what you 767 00:39:52,360 --> 00:39:55,880 Speaker 18: end up getting distributed is much much smaller because of 768 00:39:55,920 --> 00:39:57,680 Speaker 18: those carry fees in that management fee. 769 00:39:57,840 --> 00:40:02,480 Speaker 4: Look, FOMO inspires a lot about and already you started 770 00:40:02,520 --> 00:40:05,759 Speaker 4: to see that behavior in this there is fraud or 771 00:40:05,719 --> 00:40:07,040 Speaker 4: at least allegations of fraud. 772 00:40:07,239 --> 00:40:10,960 Speaker 18: Yeah, and one person settle for those charges allegations of 773 00:40:11,000 --> 00:40:14,080 Speaker 18: fraud that they shares never actually existed. So cold outreach, 774 00:40:14,360 --> 00:40:16,799 Speaker 18: wire me your money. And even though I'm promising you 775 00:40:16,880 --> 00:40:19,240 Speaker 18: not providing those documents that I actually own the shares 776 00:40:19,239 --> 00:40:22,480 Speaker 18: of said private company or said fund, I'm putting it 777 00:40:22,520 --> 00:40:25,280 Speaker 18: in my bank account. And we have seen settlements already. 778 00:40:25,320 --> 00:40:26,960 Speaker 18: And the more people I talk to you, the more 779 00:40:27,000 --> 00:40:29,719 Speaker 18: this is potentially the tip of the iceberg because you 780 00:40:29,800 --> 00:40:32,279 Speaker 18: don't have these issues come to light until there is 781 00:40:32,360 --> 00:40:35,000 Speaker 18: a forced event. So when there is an IPO, when 782 00:40:35,040 --> 00:40:37,759 Speaker 18: people say, hey, looking for those SpaceX shares I owned, 783 00:40:37,920 --> 00:40:40,320 Speaker 18: well maybe they don't end up getting transferred to your account, 784 00:40:40,320 --> 00:40:41,440 Speaker 18: and that's where the issues show up. 785 00:40:42,520 --> 00:40:45,560 Speaker 2: Bloombost baby lip shots with the big take. Thank you 786 00:40:45,719 --> 00:40:46,080 Speaker 2: very much. 787 00:40:46,160 --> 00:40:48,680 Speaker 3: That does it carry for this edition of Bloomberg Tech. 788 00:40:49,120 --> 00:40:50,760 Speaker 4: Your father and I should come in all the time 789 00:40:50,960 --> 00:40:53,680 Speaker 4: on Fire at ludlay today on Fire, don't forget to 790 00:40:53,760 --> 00:40:55,480 Speaker 4: check out our podcast. You can find it on the 791 00:40:55,560 --> 00:40:59,040 Speaker 4: terminal so it's online on Apple, Spotify and iHeart this 792 00:40:59,120 --> 00:40:59,919 Speaker 4: is Bloomberg Tech.