WEBVTT - Tech Stocks Lead Charge Toward Record 0:00:00.080 --> 0:00:13.520 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.600 --> 0:00:17.400 from coast to coast with Caroline Hide in New York 0:00:17.720 --> 0:00:20.880 and v Lovelow in San Francisco. 0:00:23.720 --> 0:00:26.760 This is Bloomberg Tech. Coming up. Tech helps stocks close 0:00:26.760 --> 0:00:29.560 in on record highs with Mag seven earnings. 0:00:29.800 --> 0:00:34.240 Plus Bridget Mendland Northwood and raises one hundred million dollars 0:00:34.240 --> 0:00:36.800 to modernize space infrastructure on Earth. 0:00:37.440 --> 0:00:40.880 And Amazon shuddering its physical stores but doubling down on 0:00:40.960 --> 0:00:43.720 deliveries Walmart, Uber and door Dash all drop. 0:00:44.000 --> 0:00:47.319 Let's check out more broad moves on the market right now. 0:00:47.360 --> 0:00:51.240 And because we have a wall of call it worry. 0:00:50.960 --> 0:00:52.680 Whether you're thinking about what the mag seven is going 0:00:52.720 --> 0:00:54.720 to report, whether you're thinking about the federal rate decision 0:00:54.960 --> 0:00:57.600 on Wednesday, a lot for the market time digest, but 0:00:57.760 --> 0:01:00.440 still were pushed to record highs the S and P 0:01:00.520 --> 0:01:02.800 five hundred. We have up nine ten percent on the 0:01:02.880 --> 0:01:06.480 Nasdaq one hundred, and I know you're checking on individual movers. 0:01:06.680 --> 0:01:08.920 They've been helping some moves in the benchmark. 0:01:09.760 --> 0:01:12.720 Yeah, an interesting deal up to six billion dollar partnership 0:01:12.760 --> 0:01:17.560 between Meta and Corning for fiber optic cabling to support 0:01:17.920 --> 0:01:20.360 Meada's data center efforts over a number of years. You 0:01:20.400 --> 0:01:23.959 know Corning, right, it's a key optics supplier to Apple, 0:01:24.319 --> 0:01:27.160 for example, But look at that stock absolutely flying up 0:01:27.160 --> 0:01:29.440 more than seventeen percent. There's a lot going on as 0:01:29.480 --> 0:01:33.360 well in the semiconductor space. Micron is long term trying 0:01:33.400 --> 0:01:36.760 to triage the shortage of supply, investing a lot of 0:01:36.800 --> 0:01:39.840 money up to twenty four billion dollars over years in 0:01:39.920 --> 0:01:43.240 Singapore that's focused on land and then overnight and career 0:01:43.400 --> 0:01:46.960 sk Heinex the biggest move of the upside. Basically, there's 0:01:47.000 --> 0:01:49.680 dip buying, there's retail investors coming in, and there's a 0:01:49.680 --> 0:01:51.960 lot of focus. What's happening in the context of a 0:01:52.080 --> 0:01:55.120 US career trade agreement agreement where there might be exemptions. 0:01:55.280 --> 0:01:57.559 Let's get to all of that. Bloomberg Senior Tech editor 0:01:57.800 --> 0:02:01.240 Mike Shephard joins us. Now, let's start with the Micron piece. Right, 0:02:01.320 --> 0:02:03.840 Like the story is well told if I say to 0:02:03.880 --> 0:02:07.160 myself on this program about the memory shortage and memory 0:02:07.160 --> 0:02:11.160 pricing situation. But Micron here is looking at where it 0:02:11.200 --> 0:02:13.840 can expand supply. It's looking at Singapore. 0:02:14.120 --> 0:02:16.720 What do we need to know, Well, it's looking at 0:02:16.720 --> 0:02:19.360 Singapore ed and this is over a ten year period 0:02:19.360 --> 0:02:23.440 and twenty four billion dollar investment there. And what they're 0:02:23.480 --> 0:02:26.800 looking at a specifically is so called nand memory, and 0:02:26.840 --> 0:02:29.720 this is something that is in demand to meet the 0:02:29.760 --> 0:02:34.480 needs of artificial intelligence chips and processors more broadly, and 0:02:34.560 --> 0:02:38.840 it's an area of focus because for AI, the memory 0:02:38.880 --> 0:02:41.920 needs are enormous and they are not fully being met. 0:02:42.160 --> 0:02:45.560 Of course, Micron competes with Samsung and s k Heinex 0:02:45.600 --> 0:02:49.480 in this memory market, and all three companies have warned 0:02:49.520 --> 0:02:53.320 of increasingly tight supplies. And this supply issue also has 0:02:53.400 --> 0:02:58.840 spillover effects. It It actually touches on smartphonemakers and PC 0:02:59.040 --> 0:03:02.239 makers too, because as those companies that we just mentioned 0:03:02.680 --> 0:03:05.120 shift their efforts to meet the needs of the AI 0:03:05.280 --> 0:03:10.160 data centers, the areas for PCs and smartphones risk going 0:03:10.280 --> 0:03:14.840 wanting in the SSD type memory and flash memory that 0:03:14.919 --> 0:03:17.240 is needed for those kinds of devices. So we're seeing 0:03:17.240 --> 0:03:20.840 that expansion by Micron. This just comes at less than 0:03:20.880 --> 0:03:23.639 two weeks after Micron cut the ribbon on a one 0:03:23.720 --> 0:03:26.799 hundred billion dollar plant in upstate New York one that's 0:03:26.840 --> 0:03:29.480 been a couple of years in coming. So we are 0:03:29.720 --> 0:03:33.040 watching to see how much more these companies are going 0:03:33.040 --> 0:03:35.520 to be investing not only in Asia but also in 0:03:35.560 --> 0:03:36.240 the US. 0:03:36.040 --> 0:03:38.160 As well, and how much more of our shares can fly. 0:03:38.560 --> 0:03:41.560 Just think sk Heinis at a new record high, even 0:03:41.600 --> 0:03:44.280 as we see the threat of well broader tariffs in 0:03:44.320 --> 0:03:46.560 South Korea. We know the chip makers are excluded, but 0:03:46.920 --> 0:03:49.920 sk Heinis in a record because it's going to be benefiting 0:03:49.960 --> 0:03:52.640 from Microsoft's push into AI chips as well. 0:03:52.720 --> 0:03:54.440 Mike, Well, that's right. 0:03:54.320 --> 0:03:56.760 And I'm glad you brought that up, Carol, because we 0:03:56.840 --> 0:03:59.440 saw the news yesterday. We all followed it so closely 0:03:59.840 --> 0:04:03.560 on this plan by Microsoft to introduce a new generation 0:04:03.680 --> 0:04:07.440 of its Maya AI chip. The Maya two hundred and 0:04:07.840 --> 0:04:11.480 local business paper in South Korea, the mainly business newspaper, 0:04:11.520 --> 0:04:16.320 is reporting that as many as six Skhinex HBM three 0:04:16.400 --> 0:04:20.040 E units will go into each Maya processor. We don't 0:04:20.080 --> 0:04:24.480 know how many of these Maya two hundred processors Microsoft 0:04:24.520 --> 0:04:28.480 will ultimately have produced for its needs for its data 0:04:28.520 --> 0:04:32.480 centers and for other customers as well, but the promise 0:04:33.160 --> 0:04:35.599 is big, and it signals that there could be a 0:04:35.680 --> 0:04:41.000 lot of demand for this HBM THREEE processor that sk 0:04:41.160 --> 0:04:44.039 Heinex has developed to meet those AI memory needs, and 0:04:44.040 --> 0:04:46.520 it could be something else. Now you mentioned the threat 0:04:46.640 --> 0:04:49.520 of additional tariffs. The President yesterday warned that the South 0:04:49.600 --> 0:04:54.920 Korea trade deal could be reworked to jack up the 0:04:55.040 --> 0:04:57.800 teriff freight on South Korean imports to twenty five percent. 0:04:57.880 --> 0:05:01.680 For now, we're not seeing anything effect memory, but we'll 0:05:01.720 --> 0:05:04.120 be watching that closely because there is a lot of 0:05:04.160 --> 0:05:07.920 pressure from the administration for more investment by South Korean 0:05:07.960 --> 0:05:09.159 companies here in the US. 0:05:09.440 --> 0:05:11.760 Mike Shepherd breaking it down so well as always, we 0:05:11.839 --> 0:05:14.400 thank you AT's return to us stox right now because 0:05:14.440 --> 0:05:17.560 if you said, the near record highs tech shares have 0:05:17.600 --> 0:05:20.440 been leading the way again as we brace for earning season, 0:05:20.520 --> 0:05:22.240 it comes thick and fast. At Weekles's discussed it all 0:05:22.240 --> 0:05:24.599 with Christina who for Chief Market Strategists and Man Group, 0:05:24.640 --> 0:05:27.359 and we still have tariff anxiety. You still have the 0:05:27.360 --> 0:05:29.039 warriors of what the Friend's going to do tomorrow, and 0:05:29.160 --> 0:05:32.840 yet we push higher. Is that the fundamental analysis we 0:05:32.880 --> 0:05:34.599 should have that their numbers are going to be good. 0:05:35.160 --> 0:05:37.640 I do think the numbers will be good, but I 0:05:37.680 --> 0:05:40.719 think there could be obstacles as we move through the year. 0:05:42.040 --> 0:05:45.080 And first off, I would anticipate that if we do 0:05:45.160 --> 0:05:48.440 see a big increase or at least a substantial increase 0:05:48.640 --> 0:05:51.440 in yields on the long end that could very easily 0:05:51.600 --> 0:05:55.599 exert downward pressure on tech stock prices. So I think 0:05:55.600 --> 0:05:58.560 that could be the first problem. But as we move 0:05:58.640 --> 0:06:03.320 through the year, we could see problems with financing, some 0:06:03.520 --> 0:06:05.200 issues with Nimby. 0:06:05.040 --> 0:06:07.640 Okay, so go there the financing you mean around AI 0:06:07.720 --> 0:06:10.640 data centers. You think about the anxiety building up around 0:06:10.880 --> 0:06:12.520 Oracle and the debt that it has to take on. 0:06:12.760 --> 0:06:16.200 Absolutely, I think that that could very well slow down 0:06:16.360 --> 0:06:19.440 the AI data center build out. So there are a 0:06:19.520 --> 0:06:22.360 number of different things that could slow progress over the 0:06:22.360 --> 0:06:25.520 course of the year and really tamp down stock prices. 0:06:26.839 --> 0:06:31.120 Christina, so stock's in near record highs and tech is 0:06:31.160 --> 0:06:34.080 pushing the way and the Nasdaq one hundreds up for 0:06:34.080 --> 0:06:38.120 a fifth consecutive session right ahead of earnings. Explain that 0:06:38.120 --> 0:06:40.440 that psychology of the market, why they would push the 0:06:40.480 --> 0:06:43.760 market higher ahead of what is a critical week for 0:06:43.839 --> 0:06:45.760 some of the biggest technology names in the world. 0:06:46.880 --> 0:06:49.560 Well, there is an old adage buy on the rumor 0:06:49.640 --> 0:06:51.880 sell on the news, and I do think there is 0:06:52.080 --> 0:06:55.520 a lot of positive sentiment right now around these companies 0:06:55.880 --> 0:07:00.760 being able to meet and potentially exceed earning ze expectations. 0:07:00.800 --> 0:07:03.560 So I think that's what's happening right now. I also 0:07:03.720 --> 0:07:07.040 believe something else is occurring, and we have to recognize 0:07:07.120 --> 0:07:12.320 that the backdrop is an economy that is sputtering. I 0:07:12.560 --> 0:07:15.160 am in the minority in this view, but I do 0:07:15.200 --> 0:07:19.600 think the economy is facing some very significant headwinds right now. 0:07:19.880 --> 0:07:22.760 We just saw consumer confidence reading that was the lowest 0:07:22.800 --> 0:07:26.640 since twenty fourteen, and I think what happens typically is 0:07:26.800 --> 0:07:31.040 in an environment like that, investors move to technology. They 0:07:31.160 --> 0:07:35.480 move to areas that are more defensive, that can perform 0:07:35.520 --> 0:07:39.240 well in a variety of different environments, the secular place. 0:07:39.320 --> 0:07:44.240 And again tech has been the poster child for secular 0:07:44.280 --> 0:07:45.440 place for some time now. 0:07:45.680 --> 0:07:47.960 So in that sense, though like nothing changes, we write 0:07:47.960 --> 0:07:49.880 in our markets wrap on the terminal, which is like 0:07:49.920 --> 0:07:51.600 it's the first thing you read every morning, right, but 0:07:51.640 --> 0:07:54.560 it says, in spite or not, even a slide in 0:07:54.600 --> 0:07:57.920 consumer confidence could stop the market rally. At the end 0:07:57.920 --> 0:08:00.240 of the day, we'll go into this earnings period at 0:08:00.280 --> 0:08:03.360 the same things capital expenditures and top line growth of 0:08:03.400 --> 0:08:06.720 the biggest companies, and then you'll come back or your 0:08:06.800 --> 0:08:09.680 peers will say well, these companies have really strong balance 0:08:09.720 --> 0:08:12.920 sheets and they're quite well diversified to weather an economic 0:08:13.000 --> 0:08:14.680 slow down. Nothing's really new. 0:08:15.800 --> 0:08:19.760 Well, I think what is becoming increasingly true is that 0:08:19.840 --> 0:08:23.200 there is a divorcing, a decoupling between Wall Street and 0:08:23.240 --> 0:08:26.720 Main Street, and that is most obvious in the tech sector. 0:08:26.880 --> 0:08:30.000 So we can see strong balance sheets, we can see 0:08:30.000 --> 0:08:34.400 companies that are performing well. But and this is a 0:08:34.440 --> 0:08:39.600 big butt, we could see external forces like yields on 0:08:39.600 --> 0:08:41.599 the long end, the ten year treasure yield, if it 0:08:41.640 --> 0:08:43.480 were to get to five percent or higher, I think 0:08:43.480 --> 0:08:47.559 that would exert downward pressure, especially on tech stock prices. 0:08:47.600 --> 0:08:49.800 So Christina, do you sell into that or do you 0:08:49.840 --> 0:08:51.720 just load up when the prices get lower? 0:08:51.760 --> 0:08:55.240 And longer term? Still they committed to tech briefly, please, So. 0:08:55.559 --> 0:08:59.440 I would say staying committed longer term to tech, but 0:08:59.640 --> 0:09:04.800 ensuring you're well diversified. You are taking some profit and 0:09:04.840 --> 0:09:08.079 moving your exposure because tech is not just in the 0:09:08.160 --> 0:09:12.160 United States, it's also in China, where valuations are significantly lower. 0:09:12.640 --> 0:09:15.640 So this is an opportunity I think to diversify portfolios. 0:09:17.000 --> 0:09:19.760 Christina Hooper, chief market strategist in the Man Group. Thank 0:09:19.800 --> 0:09:22.880 you very much, Amazon is closing its Amazon branded grocery 0:09:22.920 --> 0:09:27.439 stores and automated grab and go markets, eliminating two centerpieces 0:09:27.720 --> 0:09:31.360 of its push into physical retail and caro. Very interesting 0:09:31.440 --> 0:09:34.360 here because actually Amazon's continue to push higher since the news. 0:09:34.400 --> 0:09:37.600 The main takeaway is not that they're closing fourteen ghost 0:09:37.600 --> 0:09:41.200 stores and fifty eight fresh stores. That's small footprint, but 0:09:41.320 --> 0:09:44.280 actually even more committed to delivery. You tell me about 0:09:44.280 --> 0:09:46.120 the names that dropped in reaction, I. 0:09:46.120 --> 0:09:47.040 Mean, isn't it interesting? 0:09:47.080 --> 0:09:49.240 Well, exactly to your point, the fact that we see 0:09:49.360 --> 0:09:52.480 door Dash, we'll see other of those delivery companies maybe 0:09:52.520 --> 0:09:54.520 see it feeling the effects from all of this. But 0:09:54.920 --> 0:09:57.160 what's really interesting as well to sort of take on 0:09:57.240 --> 0:10:00.000 board is they're also deploying massive scale in terms of 0:10:00.080 --> 0:10:02.160 bricks and water in Chicago. 0:10:02.559 --> 0:10:04.760 But it's alongside the. 0:10:04.679 --> 0:10:06.480 Element that's also going to be helping delivery. 0:10:06.480 --> 0:10:08.240 It's also going to be about warehouse space. 0:10:08.600 --> 0:10:11.080 So they're just rethinking the way in which they put 0:10:11.320 --> 0:10:12.520 bricks and water on the ground. 0:10:12.600 --> 0:10:12.720 Right. 0:10:12.760 --> 0:10:15.200 Well, we're looking Walmarts, off, Ubers, off, door Dashes off. 0:10:15.240 --> 0:10:17.760 It really speaks to maybe Amazon investors thinking this is 0:10:17.800 --> 0:10:19.520 a sign of strength, a good pivot. 0:10:21.240 --> 0:10:24.520 Yeah, And lastly, grocery commitment, right, Like, they're not saying 0:10:24.520 --> 0:10:27.400 we're done with grocery, they're just saying we're moving it online. 0:10:27.440 --> 0:10:29.480 And that's reflected in that market reaction. 0:10:29.520 --> 0:10:31.760 Though it's quite like those Paler stores though, got to 0:10:31.800 --> 0:10:36.040 say rest in peace. Coming up, autonomous trucking startup Gatick. 0:10:36.040 --> 0:10:38.319 Into a new deal. We'll discuss the self. 0:10:38.160 --> 0:10:40.880 Driving companies growth with its CEO. That's next list blue 0:10:40.920 --> 0:10:41.320 bag Tech. 0:10:49.559 --> 0:10:52.600 Autonomous trucking company Gatick has landed a deal with a 0:10:52.720 --> 0:10:56.040 major consumer goods company. Gatic's not named the customer yet, 0:10:56.120 --> 0:10:59.079 but says the deal will double its contracted revenue to 0:10:59.200 --> 0:11:02.280 six hundred million dollars over the next five years, joining 0:11:02.320 --> 0:11:08.079 us as Gatti CEO and co founder Galton Nrang. Look, yeah, 0:11:08.120 --> 0:11:10.240 I'm going to few the opportunity to day in the customer. 0:11:10.280 --> 0:11:12.040 I know that you're not going to. I've pushed you 0:11:12.080 --> 0:11:14.520 over a number of days. But I think the main 0:11:14.520 --> 0:11:16.200 thing our audience wants to get a sense of is 0:11:16.679 --> 0:11:19.640 this is real. You have trucks on roads with major 0:11:19.679 --> 0:11:22.880 customers that are paying you, and therefore you're booking revenues 0:11:22.920 --> 0:11:25.400 on it. Take it from there and explain the reality 0:11:25.520 --> 0:11:26.040 for sure. 0:11:26.280 --> 0:11:28.160 So as you know, God Think is in the business 0:11:28.200 --> 0:11:32.320 of autonomous route and today we're announcing that we're operating 0:11:32.600 --> 0:11:36.320 fully driver lists, faith only drugs with no safety driver, 0:11:36.600 --> 0:11:41.480 no safety observer across real faith operations, multiple markets. 0:11:41.920 --> 0:11:44.200 To do it is small though, like ten trucks right 0:11:44.240 --> 0:11:48.040 now in today, by year end all one hundreds of drugs. 0:11:48.320 --> 0:11:50.480 But very soon in the coming weeks, we'll have over 0:11:50.559 --> 0:11:54.000 sixty drugs fully driver lists on public roads doing daily 0:11:54.000 --> 0:11:55.000 commercial operations. 0:11:55.000 --> 0:11:55.400 That's cool. 0:11:56.480 --> 0:12:00.680 Talk to us how legislatively this has worked? Regularly this 0:12:00.760 --> 0:12:03.480 has worked? How have you managed to make this a reality? 0:12:03.640 --> 0:12:07.160 While yes, we see real impact from waymowing cars, but 0:12:07.240 --> 0:12:08.760 in certain states, in certain areas. 0:12:08.800 --> 0:12:12.240 Where are you working so you know today we're live 0:12:12.280 --> 0:12:16.679 across multiple markets. This is Texas, Northwest, Arkansas, Phoenix. We 0:12:16.720 --> 0:12:19.280 work very closely with the regulators at the local, Lebel, 0:12:19.400 --> 0:12:23.240 state level, federal level, and from the early days we 0:12:23.280 --> 0:12:27.400 decided to focus on automating these regional networks, which is 0:12:27.480 --> 0:12:29.840 within the states, and that's one of the fastest ways 0:12:29.840 --> 0:12:31.160 to commercialize this technology. 0:12:32.080 --> 0:12:35.760 Commercializing then to where we've talked about six herremillion, just 0:12:35.800 --> 0:12:36.760 one key customer. 0:12:37.120 --> 0:12:38.080 What do you think your revenue run? 0:12:38.160 --> 0:12:38.280 Right? 0:12:38.320 --> 0:12:38.920 Is going to look like. 0:12:39.559 --> 0:12:42.479 So today we're working with some of the largest companies 0:12:42.559 --> 0:12:47.360 across retail, grocery, e commerce, and distribution. So each of 0:12:47.400 --> 0:12:51.080 these customers have made multi year commitment. What's unique about 0:12:51.080 --> 0:12:55.560 these commitments is these are non cancellable commitments where our 0:12:55.679 --> 0:12:59.920 technology is now being absorbed across their supply chain at scale. 0:13:00.360 --> 0:13:02.560 Those are the customers that you can name. We're showing 0:13:02.600 --> 0:13:06.439 them on the screen, Kroger, Tyson, Walmart. People will say, well, 0:13:06.440 --> 0:13:08.480 if you can't name this one, how real is it, 0:13:08.520 --> 0:13:10.360 I'm going to put it out there, right, because we're 0:13:10.360 --> 0:13:13.480 transparent on this show. The business model is interesting. You 0:13:13.520 --> 0:13:16.440 don't sell them the trucks. What is the business model? 0:13:16.440 --> 0:13:18.880 So it's an autonomous transportation as a service model as 0:13:18.880 --> 0:13:21.480 a service as a service, yes, where we charge a 0:13:21.520 --> 0:13:23.840 fixed feed prodrug pert a year, and each of these 0:13:23.840 --> 0:13:26.720 commit commitments are multi year long. So we have revenue 0:13:26.760 --> 0:13:30.079 certainty from each of these customers and that's also very 0:13:30.120 --> 0:13:31.920 unique compared to some of the other models. 0:13:31.600 --> 0:13:32.120 In our space. 0:13:32.520 --> 0:13:36.600 You have some peers in industry. One of them is Aurora, right, 0:13:36.720 --> 0:13:39.800 there are some similarities and differences. One is that they're public. 0:13:40.240 --> 0:13:43.200 You're private, sure, let's talk about that first. I mean, 0:13:43.440 --> 0:13:46.120 you know, you've been pretty open that there's a route 0:13:46.120 --> 0:13:49.120 to the public markets. What would be the motive to 0:13:49.200 --> 0:13:49.559 do that? 0:13:49.880 --> 0:13:51.760 So let me start with the fact that we have 0:13:51.800 --> 0:13:54.120 a lot of respect for all the peers in the space. 0:13:54.640 --> 0:13:57.320 But what has been our focus from day one is 0:13:57.440 --> 0:14:00.360 helping our customers move freight from their real how to 0:14:00.400 --> 0:14:04.080 retail stores and doing that at scale. And with this milestone, 0:14:04.080 --> 0:14:06.760 we have been able to prove that it's real, it's 0:14:06.760 --> 0:14:11.079 happening at scale. So today, truly there is no safety driver, 0:14:11.320 --> 0:14:14.640 no observer on public roads and in our space, no 0:14:14.679 --> 0:14:18.640 one can make that claim today public well, we are 0:14:18.679 --> 0:14:22.160 well caplized today with the very strong runway and have 0:14:22.240 --> 0:14:25.520 clear line of sight towards profitability, and we're always evaluating 0:14:25.560 --> 0:14:27.400 all the options that we have and keeping a very 0:14:27.400 --> 0:14:29.400 close watch on the market conditions. 0:14:29.600 --> 0:14:34.200 Partners From a technology perspective, obviously, in Nvidia, how much 0:14:34.200 --> 0:14:36.720 do you rely on on the hardware at the moment? 0:14:36.800 --> 0:14:38.880 How much is that cost base? Where do you look 0:14:38.920 --> 0:14:40.120 for these partnerships. 0:14:40.960 --> 0:14:44.960 So with our latest generation, generation three, the hardware is 0:14:45.120 --> 0:14:48.280 fully hardened and we're working very closely with the Nvidia 0:14:48.400 --> 0:14:52.080 with the Suzu Motors to mass produce these drugs, and 0:14:52.760 --> 0:14:55.360 towards the end of next year, Isuzu's production plant in 0:14:55.400 --> 0:14:58.120 South Carolina will be up and running and we expect 0:14:58.120 --> 0:15:01.080 to have these vehicles coming off the line at the 0:15:01.360 --> 0:15:04.800 big volumes. We're looking at tens of thousands of vehicles annually. 0:15:05.440 --> 0:15:07.640 Caroline's really asked this, right, but we should go back 0:15:07.680 --> 0:15:10.840 to it, which is the regulatory environment. Yes, you know 0:15:10.920 --> 0:15:14.880 you've launched in these markets because you can. How much 0:15:14.960 --> 0:15:18.600 do you think we need this federal level framework for 0:15:18.680 --> 0:15:21.360 you to go from very small to something more substantial. 0:15:21.800 --> 0:15:25.080 So it's really important to like have a nationwide av framework, right, 0:15:25.080 --> 0:15:27.560 So we work and we don't. Well, we're working very 0:15:27.560 --> 0:15:31.600 closely with the current administration to inform them, educate them 0:15:31.600 --> 0:15:33.800 on the safelod lot of this technology, and we expect 0:15:34.280 --> 0:15:37.440 to have a nation wide framework really soon. 0:15:38.320 --> 0:15:41.720 Come back when you've helped work that one out. Golton Narraang. 0:15:41.760 --> 0:15:45.160 It's great has in time with the GETIC CEO. Meanwhile, 0:15:45.520 --> 0:15:49.640 elsewhere in vehicles, GM CEO Mary Barras As a regulatory. 0:15:49.240 --> 0:15:50.880 Shift away from EVS. 0:15:50.760 --> 0:15:53.240 We'll see slower adoption, but the company is still committed 0:15:53.240 --> 0:15:55.520 to its EV pipeline MEGS, Matt Miller sat down with 0:15:55.600 --> 0:15:57.960 the GM CEO, Mary Barrow, take a listen. 0:15:58.600 --> 0:15:59.360 The whole industry. 0:15:59.360 --> 0:16:01.960 We were on a p as that we were working 0:16:02.000 --> 0:16:04.920 to get to forty to fifty percent evs by twenty thirty. 0:16:05.000 --> 0:16:08.080 So now that the regulatory environment has changed and the 0:16:08.080 --> 0:16:10.960 consumer incentives have gone, there is going to be slower 0:16:11.000 --> 0:16:13.560 EV adoption. We're still committed evs and we've got a 0:16:13.600 --> 0:16:16.480 great portfolio that we're working on taking costs out. But 0:16:16.520 --> 0:16:18.880 in the meantime, we also have a great internal combustion 0:16:19.000 --> 0:16:22.240 engine platform, and you're right, full size trucks are one 0:16:22.280 --> 0:16:25.440 of the strengths we have, as well as full size SUVs, 0:16:25.480 --> 0:16:28.000 mid sized crossovers. So we really have a strong line 0:16:28.040 --> 0:16:30.240 up across the board and that is really what is 0:16:30.800 --> 0:16:32.280 fueling our business success. 0:16:32.480 --> 0:16:35.800 I have had as the host of Hot Pursuit of 0:16:36.000 --> 0:16:39.200 Bloomberg podcast about cars, the opportunity to drive a lot 0:16:39.240 --> 0:16:42.960 of your evs, from the Sierra EV to the Hummer 0:16:43.000 --> 0:16:48.360 EV to the Escalaid IQ and they're fantastic products. Are 0:16:49.200 --> 0:16:52.800 you not deterred that Americans aren't buying more of these vehicles? 0:16:53.040 --> 0:16:55.600 You know how capable, how capable they are you know 0:16:55.640 --> 0:16:59.520 how useful they are in daily life. What needs to 0:16:59.600 --> 0:17:01.840 happen for more Americans to buy these evs? 0:17:02.520 --> 0:17:04.880 Well, I think the consumer is very rational when they're 0:17:04.880 --> 0:17:06.399 making a decision about what card by. 0:17:06.480 --> 0:17:07.480 Let's remember it's one. 0:17:07.440 --> 0:17:11.600 Of the most important and expensive decisions that they make. 0:17:11.920 --> 0:17:13.439 And one of the things we have to continue to 0:17:13.480 --> 0:17:16.040 work on to drive ev adaption is a more robust 0:17:16.160 --> 0:17:19.439 charging infrastructure, and that still is continuing to happen, So 0:17:19.480 --> 0:17:22.320 every quarter more and more chargers are available. I think 0:17:22.560 --> 0:17:25.360 we as people in their individual communities see that they've 0:17:25.359 --> 0:17:27.879 got a robust charging network and believe if they have 0:17:27.920 --> 0:17:29.600 to go on a road trip there's that as well, 0:17:29.600 --> 0:17:30.960 they're going to make that choice. 0:17:32.880 --> 0:17:36.440 That was GM CEO Mary Barras speaking with Bloomberg's Matt Miller. 0:17:36.520 --> 0:17:39.560 Now coming up, we will dive into anthropics new tool 0:17:39.840 --> 0:17:43.720 and how it could broadly impact jobs. Come up next, 0:17:43.920 --> 0:17:57.760 this is Bloomberg Tech Silicon Valley leaders adjoining tech workers 0:17:57.920 --> 0:18:02.440 decrying tensions in Minnesota after two US citizens were fatally 0:18:02.480 --> 0:18:06.600 shot by federal agents. Anthropic CEO Dario Emma Day posting 0:18:06.640 --> 0:18:11.520 about the quote importance of preserving democratic values and rights. 0:18:11.760 --> 0:18:14.879 Open AI CEO Sam Altman wrote in an internal memo 0:18:14.960 --> 0:18:18.879 to staff yesterday, that's what quote. What's happening with Ice 0:18:19.000 --> 0:18:21.720 is going too far. That's according to a Bloomberg source. 0:18:21.760 --> 0:18:24.880 The executives joined the chorus of other tech leaders, including 0:18:24.920 --> 0:18:28.600 LinkedIn co founder Reid Hoffman, Reddit co founder Alexis o'hanian, 0:18:28.920 --> 0:18:32.400 and venture capitalist Vinode Koestler, who have spoken out. 0:18:32.440 --> 0:18:36.680 Karen one to watch now, let's shift elsewhere for Anthropic 0:18:36.800 --> 0:18:39.600 right now, because it is released a new version on 0:18:39.680 --> 0:18:43.080 its Claude chatbot called claud cowork. They can take actions 0:18:43.200 --> 0:18:46.360 on a computer on your computer. Bloomberg opinion columnist parme 0:18:46.440 --> 0:18:49.680 Olsen writes that this could have broad repercussions and potentially 0:18:49.680 --> 0:18:52.560 be painful for some white collar workers, even as Anthropic 0:18:52.560 --> 0:18:56.040 frames itself as the most safety conscious of the AI developers. 0:18:56.320 --> 0:19:00.359 Parmi Elsen joins us, Now, so the redefinement of the 0:19:00.680 --> 0:19:03.879 engineering talent right now, the companies you've spoken to, How 0:19:04.040 --> 0:19:06.159 is Claudes products changing that? 0:19:08.200 --> 0:19:08.480 Yeah? 0:19:08.560 --> 0:19:12.800 I mean, first of all, claud cowork is the new product. 0:19:12.800 --> 0:19:15.960 And before that was claud Code, which is an AI 0:19:16.040 --> 0:19:19.800 tool for writing software programs, and that's been around for 0:19:19.840 --> 0:19:22.240 about a year and it's been getting rave reviews among 0:19:22.320 --> 0:19:26.280 technologists and coders who can use it to spin up 0:19:26.280 --> 0:19:30.879 a website within hours, and the people an Anthropic effectually 0:19:31.000 --> 0:19:33.720 use that tool to build this new tool. They did 0:19:33.760 --> 0:19:36.280 it in ten days. They didn't write a single line 0:19:36.320 --> 0:19:40.720 of code, or very little code. And this new version 0:19:40.800 --> 0:19:42.960 is something that it's sort of like people have been 0:19:42.960 --> 0:19:45.360 talking about the word AI agents. That was a big 0:19:45.400 --> 0:19:48.040 buzzword last year, but it sort of fell flat. 0:19:48.080 --> 0:19:49.640 There were issues with reliability. 0:19:50.000 --> 0:19:54.119 This could be perhaps the first mainstream breakout of an 0:19:54.160 --> 0:19:57.480 AI agent because it does work on your computer, accesses 0:19:57.680 --> 0:20:01.440 files and applications, and not just saying that it does 0:20:01.480 --> 0:20:05.000 that people are actually using I've used it, and there's 0:20:05.000 --> 0:20:08.480 been a lot of general kind of excitement and buzz 0:20:08.640 --> 0:20:11.440 about this tool that is able to just take action, 0:20:11.640 --> 0:20:15.480 not just you know if you research in. 0:20:15.560 --> 0:20:17.640 Part of the industry is paying attention. Like I think 0:20:17.680 --> 0:20:21.399 that CS Caroline was speaking to a Montenesia from General Catalyst. 0:20:21.440 --> 0:20:22.760 I think he summed it up pretty well. 0:20:22.920 --> 0:20:27.320 Just listen to this, yeah, squad, it's it's really redefining 0:20:27.359 --> 0:20:29.879 the engineering department, and just think about the size of 0:20:29.920 --> 0:20:33.320 that market you might you spend on tools and engineers 0:20:33.359 --> 0:20:36.720 to be able to build products, and you know, the 0:20:36.720 --> 0:20:41.280 amount of progress is like Silicon Value companies now code 0:20:41.280 --> 0:20:43.360 self rights for most of what they do. I think 0:20:43.359 --> 0:20:45.359 it's a real transformation with clouds really enabled. 0:20:46.840 --> 0:20:49.440 There there's a line in your Bloomberg opinion column, which 0:20:49.480 --> 0:20:50.800 by the way, is one of the most read things 0:20:50.840 --> 0:20:55.439 today on Bloomberg about the relevance to Microsoft. You know, 0:20:55.480 --> 0:20:58.159 Microsoft historically is very good at selling software that you 0:20:58.160 --> 0:21:00.720 could otherwise get for free. Just just talk a little 0:21:00.760 --> 0:21:01.960 bit more about that. You kind of flicked it. 0:21:03.359 --> 0:21:05.719 I just looked at it because I thought Cowork is 0:21:05.880 --> 0:21:09.200 pretty much what Copilot could have been and probably should 0:21:09.200 --> 0:21:14.320 have been. Copilot is the AI tool that's underpinned by CHATGBT, 0:21:14.440 --> 0:21:17.240 GPT four point five or whatever the latest model is, 0:21:17.600 --> 0:21:19.800