WEBVTT - Intel's Results Fail to Convince Investors of Turnaround 0:00:00.080 --> 0:00:13.239 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 0:00:13.320 --> 0:00:17.080 live from Coast to Coast with Caroline Hyde in New 0:00:17.160 --> 0:00:19.640 York and Vla Low in Sentrancisco. 0:00:22.600 --> 0:00:25.919 This is Bloomberg Tech coming up. Intel shares tumble after 0:00:25.960 --> 0:00:29.400 the CEO sparse concerns that he's more focused on cost 0:00:29.440 --> 0:00:31.680 cutting than innovation class. 0:00:31.720 --> 0:00:34.080 Tesla said to roll out it's robotaxi service in San 0:00:34.080 --> 0:00:37.440 Francisco this weekend, according to reports, But how robo is 0:00:37.479 --> 0:00:39.000 it with a person in the driver's seat? 0:00:39.680 --> 0:00:43.400 And the FCC approves Paramount's merger with sky Dance after 0:00:43.720 --> 0:00:46.839 a few concessions to appease the Trump administration. 0:00:47.400 --> 0:00:50.280 But first ed we check in on these markets after 0:00:50.400 --> 0:00:53.120 a week that has been a relatively turbulent one in 0:00:53.159 --> 0:00:55.440 the face of the micro that is the earnings story 0:00:55.680 --> 0:00:58.120 and the macro that is Japan trade deal, and what 0:00:58.160 --> 0:01:00.320 we see in terms of the Federal Reserve, whether it 0:01:00.360 --> 0:01:03.600 cuts or whether it doesn't, and that relationship between fedshare 0:01:03.640 --> 0:01:06.560 pal and Trump as he visits, of course, the new 0:01:06.560 --> 0:01:09.679 building site of the Federal Reserve. We're actually up eight 0:01:09.720 --> 0:01:12.200 tenths of percent over the last five trading days because 0:01:12.200 --> 0:01:13.920 big tech has managed to win out in the pot 0:01:13.959 --> 0:01:17.280 of the AI action plan some semiconductor outperformance. Move on 0:01:17.319 --> 0:01:19.959 to some of the individual names though, because some earnings 0:01:19.959 --> 0:01:22.320 on the semiconductor front have not been pleasant. But I 0:01:22.319 --> 0:01:23.760 also want to look what's happened in the world a 0:01:23.800 --> 0:01:25.720 crypto for you before you get to the micro ed 0:01:25.920 --> 0:01:28.600 I'm down three percent on bitcoin. That's more about the 0:01:28.600 --> 0:01:30.360 Fed story. That's more about the fact that maybe the 0:01:30.400 --> 0:01:32.880 Federal Reserve won't be cutting in the near term with 0:01:33.000 --> 0:01:36.120 pressure off of fedschare Pal's role. It seems Trump and 0:01:36.200 --> 0:01:38.840 him meet over the course of the last day or so. 0:01:38.920 --> 0:01:39.720 We're down three percent. 0:01:39.800 --> 0:01:42.640 What if you've got Yeah, Intel, Intel's probably our top 0:01:42.680 --> 0:01:44.960 tech story, and it's probably our top earning story. The 0:01:45.000 --> 0:01:47.320 stocks down more than nine percent, on track for its 0:01:47.319 --> 0:01:50.160 biggest drop since the first week of April. The print 0:01:50.280 --> 0:01:52.800 was fine, and we'll get into that in just the moment. 0:01:52.880 --> 0:01:55.040 But all it took was just a few words from 0:01:55.080 --> 0:01:58.480 lit Boutan on the earnings call. Basically a focus on 0:01:58.560 --> 0:02:01.560 cost cutting, not on the pro not an innovation. The 0:02:01.640 --> 0:02:05.520 result is after ours pre marketing. Now in the session, tumble, Caroline, 0:02:05.560 --> 0:02:06.320 bring us the details. 0:02:06.360 --> 0:02:09.480 Yeah, let's get all the results from Ian King, I 0:02:09.480 --> 0:02:12.040 have to say this almost felt like an emission of defeat, 0:02:12.120 --> 0:02:14.960 the fact that they're pulling back on their manufacturing, but 0:02:15.000 --> 0:02:19.079 they're also pulling back on almost innovating in Yeah. 0:02:19.080 --> 0:02:21.799 I mean this is the way that analysts have interpreted 0:02:21.880 --> 0:02:26.320 what he said, which is that this future production technology, 0:02:26.400 --> 0:02:29.079 this you know, this key to them being more competitive. 0:02:29.560 --> 0:02:31.440 Maybe we won't do it. Maybe we won't do it 0:02:31.480 --> 0:02:34.839 if we don't get commitments from outside customers, and that 0:02:35.000 --> 0:02:37.640 is not being taken well at Harbye analysts who have 0:02:37.760 --> 0:02:40.799 been listening to the company telling them, Hey, this technology, 0:02:40.800 --> 0:02:42.840 there's fourteen A, this is the key to our future. 0:02:42.880 --> 0:02:45.160 This gets us back in the game. And now maybe 0:02:45.160 --> 0:02:47.120 we're not going to do it. So there's a lot 0:02:47.160 --> 0:02:49.919 of a lot of like what's going on here sort 0:02:49.960 --> 0:02:52.120 of reaction to them. 0:02:52.639 --> 0:02:54.720 In the headline that's driving the stock lower is that 0:02:54.760 --> 0:02:57.640 the CEO is struggling to convince Wall Street that the 0:02:57.720 --> 0:03:00.880 turnaround is intact. You had some time on the phone 0:03:00.919 --> 0:03:03.800 with the CFO Daves Instare, and part of what you 0:03:03.800 --> 0:03:08.120 guys discussed was where they will pull back, probably in Europe, 0:03:08.160 --> 0:03:10.720 and where they'll continue to invest. What can you tell us? 0:03:11.639 --> 0:03:14.799 Yeah, I mean they under pat Gelsinger had all of 0:03:14.960 --> 0:03:18.120 you know, laid out a map of basically covering the 0:03:18.160 --> 0:03:20.000 world of all of these new projects that they were 0:03:20.000 --> 0:03:21.600 going to do that you know that they were going 0:03:21.600 --> 0:03:27.760 to make themselves this manufacturing powerhouse again Germany, Poland packaging 0:03:27.800 --> 0:03:30.560 facilities here there and where all of those are going, right, 0:03:30.639 --> 0:03:33.800 And even the keystone project of Ohio, which we already 0:03:33.840 --> 0:03:36.680 know has been delayed, is going to be delayed even further. 0:03:37.040 --> 0:03:39.680 So we're seeing a kind of a retreat on that building. 0:03:39.720 --> 0:03:41.880 And what they said was, look, we're not we're not 0:03:41.920 --> 0:03:43.520 going to build ahead of demand. We're going to wait 0:03:43.560 --> 0:03:45.520 until we get demand. And you know, they alerts a 0:03:45.560 --> 0:03:48.320 quite good well done, that's sensible. But then when we 0:03:48.400 --> 0:03:51.520 talk about future technology, then that's when things get tricky, 0:03:51.560 --> 0:03:52.640 and that's when people get. 0:03:52.440 --> 0:03:55.040 Concerned, concern that they're not going to build fourteen A 0:03:55.160 --> 0:03:57.640 until they get the commitments in. But what I'm really 0:03:57.640 --> 0:03:59.880 interested in is how this fits in the context of 0:04:00.640 --> 0:04:03.760 security of supply chain here in the United States. How 0:04:03.760 --> 0:04:06.200 can the federal government that wants an AI action plan 0:04:06.240 --> 0:04:09.080 and manufacturing here in the US just let Intel delay 0:04:09.120 --> 0:04:11.480 Ohio back to at least twenty thirty. 0:04:12.000 --> 0:04:15.360 Yeah, I mean probably more important than Ohio would be 0:04:15.560 --> 0:04:18.400 fourteen A, which because if they don't go to fourteen A, 0:04:18.520 --> 0:04:22.040 there's new production technologies, and they're effectively saying that's it, 0:04:22.080 --> 0:04:22.839 we're done, We're. 0:04:22.680 --> 0:04:23.480 Frozen in time. 0:04:23.920 --> 0:04:29.599 So US indigenous semiconductor leading edge capability grind, store, halt 0:04:29.600 --> 0:04:32.480 and doesn't advance. So clearly that would be a massive 0:04:32.560 --> 0:04:36.400 concern to the government were that scenario to unfold. And 0:04:36.400 --> 0:04:38.800 that's something which is obviously people are going to focus 0:04:38.800 --> 0:04:39.520 on very heavily. 0:04:41.000 --> 0:04:43.680 Bloombergsy and King who leads our semiconducts of coverage. Thank 0:04:43.720 --> 0:04:45.719 you very much. It's actually been a really busy week 0:04:45.720 --> 0:04:49.080 of tech earnings across the world of tech, software, hardware, chips, 0:04:49.400 --> 0:04:51.559 in some of the hyperscalers as well. Let's get out 0:04:51.720 --> 0:04:54.880 to Brent Hill Jeffrey's analysts, and it's been a week 0:04:54.880 --> 0:04:56.839 that's really interesting. I just got back from Washington, DC, 0:04:57.040 --> 0:04:59.279 right Brent for the AI action Plan. I listened to 0:04:59.279 --> 0:05:02.320 the President. I appreciate that Intel is not actually on 0:05:02.360 --> 0:05:05.400 your coverage list, but it was interesting that Intel wasn't 0:05:05.440 --> 0:05:09.400 in the room there in DC. Alphabet wasn't either. They 0:05:09.480 --> 0:05:11.920 had their earnings print. Would you say there's kind of 0:05:12.000 --> 0:05:15.960 one core lesson right now about what's happening in infrastructure 0:05:16.160 --> 0:05:18.680 in America and what the biggest result of this week 0:05:18.720 --> 0:05:19.960 has been from the administration. 0:05:22.720 --> 0:05:25.200 Yeah, I think the key takeaway is that the AI 0:05:25.400 --> 0:05:27.560 investment boom is still happening at a rapid rate. 0:05:27.640 --> 0:05:28.480 There's no slowdown. 0:05:28.960 --> 0:05:32.960 Google raised their entire CAPEX from seventy five to eighty 0:05:32.960 --> 0:05:36.279 five billion on their cloud business, not their AD business. 0:05:36.360 --> 0:05:40.720 So that's selling Google Cloud to enterprises, and I think 0:05:40.720 --> 0:05:44.840 it tells you that we're still in the infrastructure buildout. 0:05:45.120 --> 0:05:50.400 We continue to see the dirt, the energy, the power lines, 0:05:51.320 --> 0:05:54.440 the core servers. That's really been the focus. And the 0:05:54.520 --> 0:05:57.240 AI trade has not come to applications. That has not 0:05:57.279 --> 0:06:00.479 gone to Salesforce or Adobe, to many those names. 0:06:00.480 --> 0:06:02.839 They're not monetizing this. 0:06:03.279 --> 0:06:03.640 Yet. 0:06:03.839 --> 0:06:07.400 We think that happens, and that has to happen for 0:06:07.640 --> 0:06:11.320 AI to work. In our view, that we have to 0:06:11.320 --> 0:06:13.520 go up through the infrastructural layer of the application layer. 0:06:13.560 --> 0:06:15.320 And so I think that's the next chapter. But I'd 0:06:15.360 --> 0:06:20.320 say so far alive and kicking in doing very well 0:06:20.400 --> 0:06:23.760 in AI infrastructure. There's been no signs of slowdown. You 0:06:23.880 --> 0:06:27.359 heard Mark Zuckerberg talk about spending hundreds of billions of 0:06:27.360 --> 0:06:30.800 dollars in CAPEX. Just a couple of weeks ago, Google 0:06:30.880 --> 0:06:33.560 just raised their CAPEX by ten bill and then we've 0:06:33.560 --> 0:06:36.720 got Microsoft Amazon on deck, and we think that ultimately 0:06:36.960 --> 0:06:42.080 in our checks, the demand for hyperscale er infrastructure is accelerating. 0:06:42.640 --> 0:06:45.960 They we're seeing the terrifories starting to shake off. 0:06:46.880 --> 0:06:51.720 Brent. The AI Action Plan largely focuses on deregulation and 0:06:51.760 --> 0:06:55.000 expedited permitting. Of all of the companies that you cover, 0:06:55.080 --> 0:07:00.719 where that's relevant, how will it help them? 0:07:00.800 --> 0:07:03.479 Well, I think it should help the entire industry. 0:07:03.520 --> 0:07:07.040 If we have lower bars and lower regulation, we're going 0:07:07.080 --> 0:07:09.200 to see hopefully a lot more consolidation. I think the 0:07:09.200 --> 0:07:11.040 one thing we're seeing is there's a lot of companies 0:07:11.040 --> 0:07:14.080 that say their AI first. We saw this movie and 0:07:14.120 --> 0:07:16.040 the Internet boom in the nineties. We saw this in 0:07:16.080 --> 0:07:19.080 the cloud boom. There's going to be massive consolidation. So 0:07:19.360 --> 0:07:21.960 you're seeing already the beginning. 0:07:21.640 --> 0:07:22.880 Of an M and A wave. 0:07:22.920 --> 0:07:24.560 So I think it will help M and A, It 0:07:24.560 --> 0:07:27.160 should help the buildout, It should help protect the US 0:07:27.200 --> 0:07:28.760 in terms of what we're. 0:07:28.520 --> 0:07:30.720 Doing as a country in AI. 0:07:31.440 --> 0:07:33.320 So I think, you know, the President has this right, 0:07:33.440 --> 0:07:38.440 and certainly you look at our allies and building this. 0:07:38.520 --> 0:07:41.400 It's a collection of different technology companies and I think 0:07:41.440 --> 0:07:43.680 what we're we thought what happened at the beginning of 0:07:43.720 --> 0:07:47.040 AI is that we consolidate power to a few, and 0:07:47.080 --> 0:07:51.040 what we're finding is it's consolidating power to many, and 0:07:51.120 --> 0:07:53.960 so there's just not enough capacity. Everyone's capacity cans train. 0:07:54.000 --> 0:07:56.800 Google said their capacity constrain. Microsoft said they were going 0:07:56.840 --> 0:08:00.520 to be constrained. But what's happening now is that you're 0:08:00.600 --> 0:08:03.600 seen demand gets spread all over and that's actually good 0:08:03.600 --> 0:08:06.880 for the ecosystem and good for many vendors over time. Again, 0:08:06.920 --> 0:08:09.280 I think you're going to see a tremendous amount of 0:08:09.320 --> 0:08:11.160 cleanup in M and A, and that needs to happen 0:08:11.200 --> 0:08:13.480 because there's probably going to be too many comedies chasing 0:08:13.520 --> 0:08:16.120 this long term. But short term, I think, you know, 0:08:16.200 --> 0:08:20.640 there's no question we're an AI boom, and it's really exciting. 0:08:20.600 --> 0:08:21.400 And I think it's real. 0:08:21.440 --> 0:08:23.960 I don't think this is this is fake like we've 0:08:24.000 --> 0:08:25.120 seen in other tech trends. 0:08:25.280 --> 0:08:28.400 It's interesting service now. Bill mcdermin yesterday saying this is 0:08:28.440 --> 0:08:31.480 an existential issue for many in CRM who aren't on 0:08:31.480 --> 0:08:34.920 the AI bandwagon. I'm thinking about to IBM, and they 0:08:34.920 --> 0:08:37.600 look like they're selling well in terms of consulting into AI. 0:08:38.240 --> 0:08:40.640 The software bit was a little bit woolly, and people 0:08:40.679 --> 0:08:42.440 pulled back from what had been a ramp up in 0:08:42.480 --> 0:08:44.800 the stop Brent, just before we push forward to what's 0:08:44.880 --> 0:08:45.360 next week? 0:08:45.440 --> 0:08:46.640 What did you make of some of the. 0:08:46.600 --> 0:08:48.679 Weaker plays and how much do they get beaten. 0:08:48.480 --> 0:08:54.040 Up this week? I mean, IBM didn't have a phenomenal quarter. 0:08:54.200 --> 0:08:58.040 They introduced, you know, a new infrastructure cycle and that 0:08:58.120 --> 0:09:00.679 kind of possum man. They also are integrated and Ashi, 0:09:00.880 --> 0:09:03.680 which is a deal they did, and so the software 0:09:03.720 --> 0:09:07.120 business decelerated the point you know, it wasn't it wasn't terrible, 0:09:07.200 --> 0:09:10.160 but the stock could run up and is almost sitting 0:09:10.200 --> 0:09:12.720 at the same multiple that Microsoft was at. And I think, 0:09:12.760 --> 0:09:14.719 you know, IBM is a single digit grower. Microsoft is 0:09:14.720 --> 0:09:16.920 a double digit grower. So I think the stock got mismarked. 0:09:16.920 --> 0:09:19.320 We don't have a buy on IBM. We like what 0:09:19.320 --> 0:09:24.040 they're doing, We like Arvin's software centric strategy. So we're 0:09:24.080 --> 0:09:26.240 we're fundamental fans with stock. Just had a big move 0:09:26.600 --> 0:09:28.600 and it kind of didn't didn't make sense. Maybe where 0:09:28.640 --> 0:09:29.959 it was at based on the results. 0:09:30.320 --> 0:09:31.160 Yeah, so I don't. 0:09:31.200 --> 0:09:33.280 I went to look at IBM's results and say, you 0:09:33.280 --> 0:09:34.600 know that they're a proxy. 0:09:35.320 --> 0:09:37.880 Actually, the CEO upgraded the overall. 0:09:37.600 --> 0:09:42.200 Economy from cautiously optimistic to optimistic, and I said, well, 0:09:42.440 --> 0:09:45.160 what's next. Is there ludicrous feed or is there another 0:09:45.200 --> 0:09:48.439 speed above optimistic? But you know, Arvin, you know, has 0:09:48.480 --> 0:09:50.680 a pretty good lens and what he sees. And I 0:09:50.720 --> 0:09:54.160 think that was probably the most interesting thing, which is 0:09:54.440 --> 0:09:57.520 to us that that's a good telltale what's about happened 0:09:57.559 --> 0:09:57.960 next week? 0:09:58.040 --> 0:10:00.640 Yeah, I mean Avin told me his he's really looking 0:10:00.640 --> 0:10:02.480 at M and A at the moment, and also that 0:10:02.600 --> 0:10:05.640 he's more optimistic about consulting for twenty twenty six in 0:10:05.720 --> 0:10:08.320 years about twenty twenty five push forward then for next week, 0:10:08.320 --> 0:10:10.800 and the optimism around what this means to Microsoft spend, 0:10:10.840 --> 0:10:13.040 what this means for Amazon spend, and how much their 0:10:13.040 --> 0:10:14.040 cloud units are growing. 0:10:17.280 --> 0:10:17.520 Yeah. 0:10:17.559 --> 0:10:21.760 So Microsoft, they're on acceleration path. They've said their capacity 0:10:21.760 --> 0:10:24.840 can train. They're accelerating the guide to an acceleration. We're 0:10:24.880 --> 0:10:29.120 now looking at a mid thirty percent Azure infrastructure build 0:10:29.480 --> 0:10:32.120 for Amazon. Last quarter they put up twenty percent backlog 0:10:32.160 --> 0:10:34.720 and that was up from fourteen, So their backlogs growing. 0:10:34.480 --> 0:10:36.080 Which is a sign of what was going to happen 0:10:36.120 --> 0:10:36.679 with revenue. 0:10:37.040 --> 0:10:42.000 So we continue to see right now continued acceleration across 0:10:42.040 --> 0:10:44.680 the board. And again I would highlight we haven't even 0:10:44.679 --> 0:10:47.599 seen AI hit these numbers in a big way. I 0:10:47.679 --> 0:10:49.719 mean for all those brand communies, it's less than five 0:10:49.720 --> 0:10:50.959 percent this whole revenue. 0:10:51.800 --> 0:10:53.480 Sorry, sorry to in trouble. We just have thirty second 0:10:53.520 --> 0:10:55.719 steft by When to ask that is Capex still the 0:10:55.800 --> 0:10:57.640 data point to watch or you want to see top 0:10:57.679 --> 0:11:00.719 line growth as a result of Capex the prior. 0:11:00.520 --> 0:11:04.199 Year booking bookings is number one revenue growth and then 0:11:04.640 --> 0:11:06.720 are Capex in that order. 0:11:08.160 --> 0:11:09.920 Brent Till Jeffrey, it's great to have you back on 0:11:09.920 --> 0:11:12.920 Bloomberg Tech. We really appreciate your time. Thank you very much. 0:11:12.960 --> 0:11:16.479 Now coming up, Tesla's reportedly set to expand its robotaxi 0:11:16.559 --> 0:11:19.640 roll out this weekend to the city of San Francisco. 0:11:20.559 --> 0:11:23.320 We'll find more on that next. This is Bloomberg Tech. 0:11:41.280 --> 0:11:43.720 Time now for Talking Tech and first up Lift and 0:11:43.760 --> 0:11:46.120 it has pants to deploy autonomous shuffles in the United 0:11:46.120 --> 0:11:48.560 States in late twenty twenty six. Because it tries to 0:11:48.559 --> 0:11:51.480 catch up to Uber's driverless Rise. Now Lift will partner 0:11:51.520 --> 0:11:55.000 with Austria based manufacturer has been Teller Group to test 0:11:55.040 --> 0:11:58.679 its pull on electric shuffles in cities and airports. Plus 0:11:58.679 --> 0:12:02.199 Alphabet Cio Sunda pitch Eye is now worth over one 0:12:02.559 --> 0:12:05.880 billion dollars according to the Bloomberg Billionaires Index. Now the CEO 0:12:06.000 --> 0:12:08.840 holds just zero point not two percent economic stake in 0:12:08.840 --> 0:12:11.240 the company. But how that has added more than eight 0:12:11.320 --> 0:12:15.360 trillion dollars in market value since twenty twenty three. ASPACEX 0:12:15.440 --> 0:12:18.640 is starlink satellite internet service network. Well, it's been restored 0:12:18.920 --> 0:12:21.920 over an hour's long outage. The Elon must lead unit 0:12:22.240 --> 0:12:24.160 said in a post on x that the issues had 0:12:24.160 --> 0:12:26.720 been resolved. We didn't say how widespread the issue was 0:12:27.040 --> 0:12:28.920 or how many subscribers were affected. 0:12:29.280 --> 0:12:33.320 Ed Okay, let's get to elsewhere. In Elon Inc. Tesla 0:12:33.480 --> 0:12:36.240 is reportedly set to plan a rollout or expansion of 0:12:36.280 --> 0:12:40.319 its robotaxi service to San Francisco beginning this weekend. That's 0:12:40.360 --> 0:12:42.960 according to a report from Business Insider. I want to 0:12:42.960 --> 0:12:45.680 bring in Bloomberg's Max Chaffkin, one of the Elon Inc. Team, 0:12:45.760 --> 0:12:49.280 and I find this interesting. The specifics are that it's 0:12:49.280 --> 0:12:53.520 planned for maybe today Friday. On the earnings call earlier 0:12:53.520 --> 0:12:56.080 in the week, which you participated in, Ashle Kelaswami, who's 0:12:56.080 --> 0:12:59.520 the Robotaxi chief, said that they were doing this anyway. 0:12:59.600 --> 0:13:01.920 But there some bits that we don't know what was 0:13:01.960 --> 0:13:05.160 in the Business Insider reports and what do you make 0:13:05.200 --> 0:13:05.480 of it? 0:13:06.080 --> 0:13:08.640 So the Business Insider report is based on a memo, 0:13:08.679 --> 0:13:15.720 an internal memo you know, within Tesla, promising a sort 0:13:15.720 --> 0:13:20.240 of robotaxi service, albeit one with a driver in the 0:13:20.360 --> 0:13:23.080 driver seed. So so I don't I'm not sure if 0:13:23.120 --> 0:13:25.240 you can really call it a robotaxi if there is 0:13:25.640 --> 0:13:27.920 a it's a driverless car that does have a driver. 0:13:28.000 --> 0:13:30.480 But you know, what they're saying is that they're testing this. 0:13:31.000 --> 0:13:33.880 The other thing I'll say is California has a pretty 0:13:33.960 --> 0:13:37.440 robust permitting system for driverless cars. In fact, you know, 0:13:37.640 --> 0:13:40.120 this has been around since like twenty eighteen. I believe 0:13:40.160 --> 0:13:44.559 the first company that had this permit was Zoukes, but Waimo, Cruz, 0:13:44.840 --> 0:13:48.160 lots and lots of companies for years have been operating 0:13:48.200 --> 0:13:51.079 these services with permits. As anyone who lives in the 0:13:51.120 --> 0:13:54.319 Bay Area knows, Tesla does not have any of these permits. 0:13:54.400 --> 0:13:55.320 Yet what they have is. 0:13:55.320 --> 0:13:57.000 Something called a TCP permit. 0:13:57.520 --> 0:14:01.280 This is basically a permit to operate a charter service 0:14:01.520 --> 0:14:04.760 with human drivers, so effectively like a black car service, 0:14:04.800 --> 0:14:06.640 a chauffeur service or whatever. 0:14:07.400 --> 0:14:10.000 And so my guess is that. 0:14:09.960 --> 0:14:12.679 Is how they're they're going to justify this, which is 0:14:13.000 --> 0:14:15.720 to say, you know, it's not really an autonomous car 0:14:15.840 --> 0:14:18.720 as far as the law is concerned. Of course, Tesla 0:14:19.040 --> 0:14:22.960 has blurred the lines between like what constitutes an autonomous 0:14:23.520 --> 0:14:25.120 car for years and years. 0:14:25.400 --> 0:14:27.720 We were just seeing the Tesla VP of AI software 0:14:27.800 --> 0:14:31.040 what he said about the rollout of robotaxing more broadly 0:14:31.160 --> 0:14:35.600 on the earnings call, and I'm really interested ultimately here 0:14:35.680 --> 0:14:38.280 Max as to how you get to this vision that 0:14:38.320 --> 0:14:39.880 by I think it's the second half of the year, 0:14:40.320 --> 0:14:42.600 half of Americans are meant to be able to access 0:14:42.600 --> 0:14:44.840 a robotaxing, But at the moment they're but a handful 0:14:44.840 --> 0:14:47.240 in Austin and maybe a few with a driver at 0:14:47.280 --> 0:14:49.160 the well at least a person that the driver's seat 0:14:49.160 --> 0:14:50.440 is starting to do San Francisco. 0:14:51.120 --> 0:14:54.120 I mean, look, Tesla doesn't really have a robotaxi service today. 0:14:54.240 --> 0:14:56.960 Like what it has is, you know, eleven or so 0:14:57.080 --> 0:14:59.800 cars in Austin that have a safety observer. 0:15:00.080 --> 0:15:01.480 And of course we know that there. 0:15:01.520 --> 0:15:03.640 As I said before, there are other companies that are 0:15:03.680 --> 0:15:07.680 operating actual robotaxi service. WEIMO has something like fifteen hundred 0:15:07.920 --> 0:15:12.840 vehicles in five cities without drivers. I think if it 0:15:12.920 --> 0:15:14.720 just all depends on how you define it, my guess 0:15:14.760 --> 0:15:16.240 is what they're going to say is they have these 0:15:16.280 --> 0:15:19.600 testing vehicles, they have relatively wide ranges. 0:15:19.720 --> 0:15:20.680 Maybe you do. 0:15:20.640 --> 0:15:25.280 Some some math and and theoretically you can justify have 0:15:25.400 --> 0:15:28.080 it saying that half the population is covered. But I 0:15:28.080 --> 0:15:32.560 think by any normal person's definition that that just isn't 0:15:32.560 --> 0:15:35.360 going to be true, just because technically we are not 0:15:35.440 --> 0:15:37.080 that close to that being possible. 0:15:38.040 --> 0:15:41.040 The other big story out today is about Ultimus in March. 0:15:41.560 --> 0:15:44.840 This is how Ela Musk outlined the plan for Optimists 0:15:44.840 --> 0:15:46.760 in twenty twenty five. Listen to this Max. 0:15:47.320 --> 0:15:50.000 This year, we hopefully will be able to make about 0:15:51.480 --> 0:15:58.000 five thousand Optimist robots. We're technically we're aiming for enough 0:15:58.000 --> 0:16:00.720 parts to make ten maybe twelve thousand. 0:16:01.880 --> 0:16:02.640 But since it's a. 0:16:02.600 --> 0:16:05.920 Totally new product with totally new you know, like everything 0:16:06.000 --> 0:16:09.360 is totally new, I'll say like we're succeeding if we 0:16:09.400 --> 0:16:11.600 get to half of the ten you know, half of 0:16:11.600 --> 0:16:14.480 the ten thousand now, but even five thousand robots, that's 0:16:14.880 --> 0:16:17.840 that's the size of a Roman legion. If I which 0:16:17.920 --> 0:16:19.600 is like a little scary thought, like a whole legion 0:16:19.640 --> 0:16:23.600 of robuts, I'd be like, WHOA, Okay, but I think 0:16:23.880 --> 0:16:26.160 I think we'll literally both a legion at least one 0:16:26.240 --> 0:16:28.280 legion of robots this year. 0:16:29.480 --> 0:16:32.840 There's a report from the Information out today that disputes 0:16:32.880 --> 0:16:36.040 what Ela Musk outlined, that they actually nowhere near to 0:16:36.080 --> 0:16:36.600 five thousand. 0:16:36.640 --> 0:16:41.600 What do we know, Max, Yeah, this Information report, it's 0:16:41.640 --> 0:16:45.320 pretty it pours some cold water on the statements that 0:16:45.320 --> 0:16:48.520 that Musk has made. It talks about, you know, real 0:16:48.560 --> 0:16:52.760 difficulty manufacturing hearts of these robots, particularly the hands. I mean, 0:16:52.800 --> 0:16:55.560 one thing in that clip that's worth noting. Elon Musk 0:16:55.640 --> 0:16:57.680 is right when he says this is new, and this 0:16:57.760 --> 0:17:01.080 is hard, and so so you know, in a weird way, 0:17:01.840 --> 0:17:04.399 you know. Where whereas with robotaxis, there are lots of 0:17:04.400 --> 0:17:07.080 other companies that have been doing what Tesla is doing 0:17:07.119 --> 0:17:10.320 for for quite some time with optimists. If they were 0:17:10.400 --> 0:17:12.960 actually able to make this work or really get close 0:17:13.000 --> 0:17:15.440 to making it work. That would be amazing, that would 0:17:15.440 --> 0:17:19.399 be really impressive. But from this information story, you know, 0:17:19.640 --> 0:17:21.760 it seems like they're just not progressing where they are. 0:17:21.920 --> 0:17:24.320 Must talked about what was it a legion? I think 0:17:24.359 --> 0:17:26.960 where what the information said is they have something like 0:17:27.080 --> 0:17:31.560 fifty optimists optimize, you know, kind of walking around and 0:17:32.040 --> 0:17:33.919 picking stuff up and putting it down in the factory, 0:17:33.960 --> 0:17:36.159 not not doesn't sound like doing actual work yet. I 0:17:36.160 --> 0:17:38.199 don't know how many fifty is, but definitely less thann 0:17:38.200 --> 0:17:39.720 Allegian My. 0:17:40.000 --> 0:17:42.200 You know what Musk is somebody who. 0:17:42.040 --> 0:17:46.040 Is totally focused and his sort of expertise is getting 0:17:46.040 --> 0:17:48.159 investors to look at the future, not to look at 0:17:48.200 --> 0:17:50.320 the near here and now, but to look ahead. And 0:17:50.359 --> 0:17:52.240 so I think if you look at the timing of 0:17:52.280 --> 0:17:56.280 this robotaxi launch, one possible reason would be you have 0:17:56.320 --> 0:18:00.000 this information report coming out that makes this other futuristic 0:18:00.200 --> 0:18:02.560 thing look like it's much further out. 0:18:02.720 --> 0:18:05.200 So hey, let's let's speed up the robotaxis. 0:18:05.280 --> 0:18:07.000 Let's get investors excited about something. 0:18:07.560 --> 0:18:10.800 And I don't know what fifty is. Two soccer squads 0:18:10.960 --> 0:18:16.840 Bloomberg's match Chafkin, thanks so much, Brigade. Meanwhile, coming up 0:18:17.080 --> 0:18:19.720 less about OPTIMI and more about the US and China 0:18:20.240 --> 0:18:22.800 both pushing ahead to lead the global AI rights. We're 0:18:22.840 --> 0:18:24.880 going to speak with Teresa Carlson of the General Catalyst 0:18:24.960 --> 0:18:28.359 Institute on a conversation on how governments can support cutting 0:18:28.440 --> 0:18:41.560 edge check. This is Bloomberg Tech, Chinese tech leaders, government officials, investors. Well, 0:18:41.560 --> 0:18:44.960 they're headed to Shanghai this weekend for the World Ai Conference. 0:18:45.119 --> 0:18:47.720 It comes as Beijing looks to propel its AI ambitions 0:18:47.720 --> 0:18:49.600 forward in the face of the new AI Action Plan 0:18:49.800 --> 0:18:52.760 from Washington meant to cement US dominance in the space 0:18:53.000 --> 0:18:55.200 for more. We're joined by Teresa Carlson Fanning, president of 0:18:55.240 --> 0:18:58.080 the General Catalyst Institute. And you've been applauding this AI 0:18:58.119 --> 0:19:00.840 Action Plan. Is there enough there for startups as well 0:19:00.880 --> 0:19:01.480 as big tech? 0:19:03.119 --> 0:19:08.200 It's definitely got an amazing basis for it. It was 0:19:08.560 --> 0:19:11.680 it was broad, and it was reaching, and I've never 0:19:11.800 --> 0:19:15.440 seen an administration access quickly. And I think one of 0:19:15.480 --> 0:19:17.720 the biggest issues here is that we need to be 0:19:17.800 --> 0:19:21.280 ahead of China and all aspects. And the only way 0:19:21.359 --> 0:19:23.639 that this is going to occur if we have a 0:19:23.680 --> 0:19:27.840 public private partnership where you have both government ensuring that 0:19:27.880 --> 0:19:31.560 they're cutting all the regulatory tape, and you have private 0:19:31.600 --> 0:19:35.440 sector both developing and providing capital into these markets. 0:19:36.760 --> 0:19:39.320 Theresa, I've been trying to write down everything that I 0:19:39.400 --> 0:19:41.399 learned from being in the room and speaking to all 0:19:41.440 --> 0:19:44.640 those officials and CEOs, and the thing I keep writing 0:19:44.680 --> 0:19:48.880 down is no software people on stage. There were none 0:19:48.920 --> 0:19:52.479 of the frontier or model making names. Everything was about energy, 0:19:53.000 --> 0:19:56.240 chips and deregulation. Do you have a view on that? 0:19:56.400 --> 0:19:58.680 Yes, it really stood out. 0:19:58.760 --> 0:20:00.399 I was in that room with you and it was 0:20:00.400 --> 0:20:02.679 the one thing we were all talking about. But I 0:20:02.760 --> 0:20:06.320 actually thought it was very energizing because we backed over 0:20:06.440 --> 0:20:10.360 eight hundred startups at General Catalyst in all different areas 0:20:10.720 --> 0:20:15.600