1 00:00:04,120 --> 00:00:08,520 Speaker 1: Bloomberg Tech is alive from coast to coast, with Caroline 2 00:00:08,560 --> 00:00:12,120 Speaker 1: Hide in New York and Ed Lavelow into then Rince's goal. 3 00:00:15,120 --> 00:00:18,360 Speaker 2: This is Bloomberg Tech coming up. Tech earnings are in focus, 4 00:00:18,440 --> 00:00:21,360 Speaker 2: with Texas Instruments and AT and T already out and 5 00:00:21,400 --> 00:00:24,560 Speaker 2: looking to Alphabet and Tesla after the bell today, Plus 6 00:00:24,560 --> 00:00:25,720 Speaker 2: the Microsoft. 7 00:00:25,239 --> 00:00:28,920 Speaker 1: SharePoint hack hits the US Nuclear Weapons Agency as the 8 00:00:29,000 --> 00:00:32,519 Speaker 1: tally grows of organizations breached, and the. 9 00:00:32,479 --> 00:00:36,159 Speaker 2: White House unveils its AI action plan, including the promotion 10 00:00:36,360 --> 00:00:39,360 Speaker 2: of a rapid buildout of data centers for AI. 11 00:00:39,800 --> 00:00:42,559 Speaker 1: Meanwhile, let's check in on these markets because maybe then, 12 00:00:42,600 --> 00:00:44,559 Speaker 1: as that one hundred is lagging some of the other 13 00:00:44,640 --> 00:00:47,839 Speaker 1: key benchmarks today, the enthusiasm for the SMP, for the 14 00:00:47,920 --> 00:00:51,840 Speaker 1: Dow post, that Japan trade deal not quite filtering through, 15 00:00:51,880 --> 00:00:55,000 Speaker 1: We've got more anxiety around individual earnings that you're digging into. 16 00:00:55,160 --> 00:00:57,720 Speaker 1: Currently flat on the Naskak one hundred key tech benchmark. 17 00:00:57,760 --> 00:00:58,440 Speaker 3: What are you looking at? 18 00:00:59,200 --> 00:01:01,200 Speaker 2: Yeah, we're kind of trying water to tonight, right, But 19 00:01:01,280 --> 00:01:03,320 Speaker 2: the two earnings that are our AT and T, which 20 00:01:03,320 --> 00:01:06,959 Speaker 2: is also completely flat the story. They just didn't hype 21 00:01:06,959 --> 00:01:09,040 Speaker 2: themselves up as much as some of their peers had 22 00:01:09,040 --> 00:01:11,600 Speaker 2: taken advantage of policy. We'll get into that in just 23 00:01:11,600 --> 00:01:14,720 Speaker 2: a minute, but look at Texas Instruments down twelve point 24 00:01:14,760 --> 00:01:15,400 Speaker 2: three percent. 25 00:01:15,800 --> 00:01:17,200 Speaker 4: Do the math on tariffs. 26 00:01:17,240 --> 00:01:20,319 Speaker 2: Maybe part of this, Carrow is that for a company 27 00:01:20,319 --> 00:01:23,360 Speaker 2: that makes chips that go into basically everything, they can't 28 00:01:23,360 --> 00:01:24,400 Speaker 2: do the math on tariffs. 29 00:01:24,440 --> 00:01:25,319 Speaker 4: And I think that's where we go. 30 00:01:25,880 --> 00:01:28,720 Speaker 1: We do because one hundred thousand customers, they couldn't tell 31 00:01:28,760 --> 00:01:30,800 Speaker 1: us who is dragging inventory forward or not. 32 00:01:30,959 --> 00:01:32,360 Speaker 3: In King joins us for more. 33 00:01:32,400 --> 00:01:34,800 Speaker 1: And look, this is the worst fall in the stock 34 00:01:34,920 --> 00:01:36,360 Speaker 1: since two thousand and eighty in. 35 00:01:37,800 --> 00:01:40,880 Speaker 5: Yeah, they're having a very bad day. And it's not 36 00:01:41,040 --> 00:01:44,119 Speaker 5: because the numbers are terrible, they're absolutely not. It's more 37 00:01:44,160 --> 00:01:46,440 Speaker 5: of a directional thing. And it's more because, as you 38 00:01:46,480 --> 00:01:50,320 Speaker 5: guys just alluded to, they're kind of pressing the wrong buttons, 39 00:01:50,320 --> 00:01:52,800 Speaker 5: the fear buttons for the market right now, which is 40 00:01:53,360 --> 00:01:55,760 Speaker 5: tariffs are going to have an impact. Maybe they're having 41 00:01:55,800 --> 00:01:59,200 Speaker 5: an impact already. Frankly, we don't know. And that was 42 00:01:59,240 --> 00:02:02,840 Speaker 5: really then of the call yesterday, and obviously analysts and 43 00:02:02,880 --> 00:02:05,040 Speaker 5: investors this morning did not like that. 44 00:02:06,800 --> 00:02:07,000 Speaker 4: Ian. 45 00:02:07,040 --> 00:02:10,440 Speaker 2: In your interview with CFO Raphael Lazardi, he basically said 46 00:02:10,440 --> 00:02:12,320 Speaker 2: this idea, right, we have all these customers in all 47 00:02:12,320 --> 00:02:14,440 Speaker 2: these different domains. It's hard of us for us to 48 00:02:14,520 --> 00:02:17,520 Speaker 2: keep track. But executives on the call also talked about 49 00:02:17,560 --> 00:02:20,520 Speaker 2: the idea that in the current period, the order data 50 00:02:20,560 --> 00:02:21,400 Speaker 2: is quite strong. 51 00:02:23,200 --> 00:02:25,480 Speaker 5: Yeah, I mean the way that they described it was 52 00:02:25,480 --> 00:02:28,119 Speaker 5: that it was kind of long, nonlinear, that when there 53 00:02:28,200 --> 00:02:30,400 Speaker 5: was a lot of uncertainty about what was going to 54 00:02:30,440 --> 00:02:33,080 Speaker 5: happen with tariffs, at the beginning of the quarter, we 55 00:02:33,120 --> 00:02:36,200 Speaker 5: had a kind of a spike very strong orders, and 56 00:02:36,240 --> 00:02:38,880 Speaker 5: then after that things kind of evened out a little 57 00:02:38,880 --> 00:02:41,720 Speaker 5: bit more and followed normal patterns. But that is the 58 00:02:41,840 --> 00:02:44,400 Speaker 5: kind of thing that analysts and investors have kind of 59 00:02:44,400 --> 00:02:47,600 Speaker 5: been looking for as like a sign that this demand 60 00:02:47,680 --> 00:02:50,520 Speaker 5: that we're seeing isn't real demand, that it's this inventory 61 00:02:50,560 --> 00:02:53,040 Speaker 5: build up that Caroline just sort of alluded to that 62 00:02:53,120 --> 00:02:54,400 Speaker 5: this kind of pulled forward. 63 00:02:54,840 --> 00:02:57,799 Speaker 6: So again, the numbers were good, right. 64 00:02:58,080 --> 00:03:00,960 Speaker 5: Sixteen percent then forecasting eleven percent growth. 65 00:03:01,200 --> 00:03:02,240 Speaker 4: There's nothing wrong with that. 66 00:03:02,680 --> 00:03:05,639 Speaker 5: The problem is that people are concerned about how much 67 00:03:05,639 --> 00:03:08,440 Speaker 5: of that is real and how much of that can continue. 68 00:03:08,680 --> 00:03:11,600 Speaker 1: What's the reader cross Because NXP sort of signaled this, 69 00:03:12,080 --> 00:03:14,240 Speaker 1: but Texas Instruments is the Bellweather. 70 00:03:15,400 --> 00:03:19,720 Speaker 5: Yeah, Texas Instruments is a more diverse company than an XP. 71 00:03:20,080 --> 00:03:22,800 Speaker 5: What they have in common was auto and what Texas 72 00:03:22,840 --> 00:03:25,640 Speaker 5: Instruments said about automotive, which is, as you know, one 73 00:03:25,639 --> 00:03:29,079 Speaker 5: of the great hopes for the chip industry. Things haven't 74 00:03:29,160 --> 00:03:31,760 Speaker 5: got better yet. We perhaps or a bit of pull 75 00:03:31,880 --> 00:03:34,960 Speaker 5: forward in China. And again this is a you know, 76 00:03:35,000 --> 00:03:37,960 Speaker 5: this should be turning into a positive story. This should 77 00:03:37,960 --> 00:03:40,880 Speaker 5: be sort of heading upwards and making everybody smile again. 78 00:03:41,200 --> 00:03:43,960 Speaker 5: And it's not right. So that as we look at 79 00:03:44,000 --> 00:03:47,240 Speaker 5: other companies throughout this earnings period, companies that are trying 80 00:03:47,240 --> 00:03:50,600 Speaker 5: to do well in auto, perhaps the company is like Qualcomm, 81 00:03:50,720 --> 00:03:54,000 Speaker 5: which is part of the IDA versification story. People are 82 00:03:54,000 --> 00:03:56,760 Speaker 5: now concerned about this area. People are now concerned more 83 00:03:56,800 --> 00:03:57,280 Speaker 5: in general. 84 00:03:58,640 --> 00:04:00,840 Speaker 4: Blue Magsie King, thank you very much. 85 00:04:01,000 --> 00:04:03,400 Speaker 2: Another company that's out of earnings is AT and T 86 00:04:03,600 --> 00:04:06,360 Speaker 2: shares have been slipping. They're now flat after the company 87 00:04:06,400 --> 00:04:10,680 Speaker 2: reiterated a profit forecast that fell short of analyst estimate. Still, 88 00:04:10,760 --> 00:04:14,400 Speaker 2: the company saw rapid wireless phone subscriber growth, adding four 89 00:04:14,480 --> 00:04:17,480 Speaker 2: hundred and one thousand customers with the help of increased 90 00:04:17,520 --> 00:04:21,039 Speaker 2: perks and incentives in the second quarter. For more Bloombers. 91 00:04:21,120 --> 00:04:25,080 Speaker 2: Kelsey Griffiths is here in Washington, DC. So basically investors 92 00:04:25,120 --> 00:04:26,680 Speaker 2: are saying, well, hold on a minute. One of your 93 00:04:26,680 --> 00:04:30,520 Speaker 2: big rivals, Verizon big themselves up what they've been able 94 00:04:30,560 --> 00:04:34,320 Speaker 2: to do because of President Trump's policies, particularly around tax i. 95 00:04:34,360 --> 00:04:36,760 Speaker 2: Guess the reader cross is that they're disappointed AT and 96 00:04:36,800 --> 00:04:39,479 Speaker 2: T's not doing the same thing exactly. 97 00:04:39,640 --> 00:04:41,760 Speaker 7: So what we saw this Maureene is that AT and 98 00:04:41,800 --> 00:04:44,800 Speaker 7: T became a bit of a victim of inflated Wall 99 00:04:44,800 --> 00:04:49,039 Speaker 7: Street expectations. After a Verizon ended up posting these really 100 00:04:49,080 --> 00:04:54,960 Speaker 7: good numbers, they ended up updating their full year forecast, 101 00:04:55,200 --> 00:04:57,240 Speaker 7: and I think the market was kind of hoping that 102 00:04:57,279 --> 00:04:59,480 Speaker 7: AT and T would do the same. Now, AT and 103 00:04:59,520 --> 00:05:03,719 Speaker 7: T did adjust their numbers a bit, but it wasn't 104 00:05:03,760 --> 00:05:05,560 Speaker 7: anything as dramatic as we saw a Verizon. 105 00:05:05,839 --> 00:05:08,599 Speaker 1: Meanwhile, what was dramatically better than Verizon was the amount 106 00:05:08,640 --> 00:05:11,360 Speaker 1: of net ads they're making in terms of phone use. 107 00:05:11,520 --> 00:05:13,479 Speaker 3: Kelsey just push us forward. 108 00:05:13,560 --> 00:05:15,640 Speaker 1: Therefore, on AT and T, perhaps what was baked in 109 00:05:15,680 --> 00:05:17,279 Speaker 1: because these stocks have run up this year. 110 00:05:18,880 --> 00:05:19,360 Speaker 3: That's right. 111 00:05:19,440 --> 00:05:22,280 Speaker 7: AT and T is on a really good growth trajectory 112 00:05:22,480 --> 00:05:25,440 Speaker 7: and they're seen as this pretty steady you. 113 00:05:25,320 --> 00:05:28,000 Speaker 6: Know growing business. 114 00:05:28,040 --> 00:05:30,240 Speaker 7: They've been investing a lot of cash into their Fiver 115 00:05:30,880 --> 00:05:33,919 Speaker 7: subscriber ads, and although they were a little short of 116 00:05:33,960 --> 00:05:37,599 Speaker 7: expectations this quarter, that is still an area where they're 117 00:05:37,640 --> 00:05:38,920 Speaker 7: predicting massive growth. 118 00:05:39,640 --> 00:05:42,960 Speaker 2: They were bullish about their commitment to investing in this country. 119 00:05:42,960 --> 00:05:45,039 Speaker 2: This is a theme Caroline and I've discussed with AT 120 00:05:45,160 --> 00:05:47,200 Speaker 2: and T in the past. What did the CFO say 121 00:05:47,240 --> 00:05:50,080 Speaker 2: they're going to prioritize and what's the kind of level 122 00:05:50,120 --> 00:05:52,240 Speaker 2: of investment that they're talking about here. 123 00:05:52,720 --> 00:05:55,640 Speaker 7: That's right, So in the wake of the big beautiful bill, 124 00:05:56,400 --> 00:06:00,240 Speaker 7: all companies, including Verizon and AT and T are looking 125 00:06:00,279 --> 00:06:03,400 Speaker 7: to really invest in their networks. They're looking at these 126 00:06:03,440 --> 00:06:06,240 Speaker 7: tax savings and kind of thinking about how they're going 127 00:06:06,279 --> 00:06:08,320 Speaker 7: to spend that. For AT and T, we've heard that 128 00:06:08,360 --> 00:06:13,080 Speaker 7: they're going to invest an extra billion or so in 129 00:06:13,920 --> 00:06:17,320 Speaker 7: the fiber network, I believe per year. And then we're 130 00:06:17,320 --> 00:06:19,520 Speaker 7: also going to see some pretty big contributions to the 131 00:06:19,560 --> 00:06:20,640 Speaker 7: employee pension plan. 132 00:06:21,400 --> 00:06:22,040 Speaker 3: We'll keep an eye on it. 133 00:06:22,160 --> 00:06:24,159 Speaker 1: Kelsey Griffiths, we thanks so much on the wrap up 134 00:06:24,200 --> 00:06:25,920 Speaker 1: on AT and T, But now let's get some other 135 00:06:25,960 --> 00:06:28,440 Speaker 1: earnings context and what we expect to come after. 136 00:06:28,360 --> 00:06:30,120 Speaker 3: The closing bell today. Of course it's Alphabet. 137 00:06:30,320 --> 00:06:33,440 Speaker 1: Brad Ericsson, internet analyst that obviously Capital Markets joins us 138 00:06:33,480 --> 00:06:35,680 Speaker 1: now and you've got I think it's about a two 139 00:06:35,760 --> 00:06:36,760 Speaker 1: hundred dollars price. 140 00:06:36,560 --> 00:06:38,560 Speaker 3: Tag outperform on Alphabet. 141 00:06:38,920 --> 00:06:41,040 Speaker 1: How can they live up to the prior to this 142 00:06:41,120 --> 00:06:44,240 Speaker 1: day ten day run up, a longest winning streak for 143 00:06:44,240 --> 00:06:46,360 Speaker 1: Alphabet that we've seen since twenty ten. 144 00:06:46,520 --> 00:06:46,839 Speaker 4: Rat. 145 00:06:48,200 --> 00:06:51,680 Speaker 8: Yeah, there's a couple of kind of cross current things 146 00:06:51,720 --> 00:06:54,720 Speaker 8: going on. I think first on the fundamental side, we're 147 00:06:54,760 --> 00:06:56,920 Speaker 8: going to see really good numbers our checks through the quarter. 148 00:06:56,960 --> 00:07:00,320 Speaker 8: We're fairly strong, and I do expect them to print 149 00:07:00,360 --> 00:07:03,520 Speaker 8: upside tonight. So I think that's kind of why you've 150 00:07:03,520 --> 00:07:06,120 Speaker 8: seen the market price that in a little bit and 151 00:07:06,440 --> 00:07:08,119 Speaker 8: run the stock up here in front of the print 152 00:07:08,800 --> 00:07:12,320 Speaker 8: off setting that maybe not quite as good from a 153 00:07:12,400 --> 00:07:15,560 Speaker 8: from a forward set of perspective, is that once they 154 00:07:15,600 --> 00:07:18,800 Speaker 8: print numbers tonight, say what they say, then we've got 155 00:07:18,840 --> 00:07:21,520 Speaker 8: to sit around and wait two three four weeks for 156 00:07:21,600 --> 00:07:24,520 Speaker 8: this regulatory decision out of the judge that the obviously 157 00:07:24,720 --> 00:07:27,760 Speaker 8: will we'll scare some people, so and let's. 158 00:07:27,640 --> 00:07:30,040 Speaker 1: Just think about that regulatory overhang. And we love reading 159 00:07:30,080 --> 00:07:32,880 Speaker 1: your notes and really we're talking about how this is 160 00:07:32,920 --> 00:07:36,480 Speaker 1: a strong fundamentally company but challenged thematically in a waiting 161 00:07:36,520 --> 00:07:40,280 Speaker 1: regulatory wild card. We await what Judge Meta says in August. 162 00:07:40,520 --> 00:07:44,680 Speaker 1: But when you think about the challenge thematically, any numbers 163 00:07:44,720 --> 00:07:46,120 Speaker 1: that you're going to be looking at that would tell 164 00:07:46,160 --> 00:07:48,840 Speaker 1: you that there is competition in terms of search that 165 00:07:49,000 --> 00:07:51,720 Speaker 1: CHATCHBT is eating in to their breadwinner. 166 00:07:53,920 --> 00:07:56,440 Speaker 8: Yeah, I mean they'll they'll obviously again, they'll print the 167 00:07:56,480 --> 00:07:58,760 Speaker 8: numbers tonight. I do expect them to be good and 168 00:07:58,840 --> 00:08:01,960 Speaker 8: so just objectively on that piece of it, I think 169 00:08:01,960 --> 00:08:04,600 Speaker 8: they'll have a really strong case and story to tell 170 00:08:04,600 --> 00:08:05,720 Speaker 8: on the conference. 171 00:08:05,320 --> 00:08:08,320 Speaker 6: Call around why AI is good for their business. 172 00:08:08,560 --> 00:08:11,480 Speaker 8: They're not going to directly address sort of the competitive threats, 173 00:08:11,720 --> 00:08:13,640 Speaker 8: but they will definitely be I think in a good 174 00:08:13,680 --> 00:08:17,200 Speaker 8: position tonight to position AIS as sort of nothing but 175 00:08:17,280 --> 00:08:19,680 Speaker 8: a good thing for the business. 176 00:08:20,120 --> 00:08:22,760 Speaker 6: But yeah, I think the point of our note was 177 00:08:23,600 --> 00:08:24,520 Speaker 6: the numbers will be good. 178 00:08:24,600 --> 00:08:26,560 Speaker 8: They can say what they want, but the reality is, 179 00:08:26,600 --> 00:08:29,680 Speaker 8: so long as you know chat GPT, Perplexity, anthropic, there's 180 00:08:29,680 --> 00:08:32,719 Speaker 8: a number of companies that are really making a lot 181 00:08:32,720 --> 00:08:35,440 Speaker 8: of headway on the AI front. Everyone's well aware of 182 00:08:36,240 --> 00:08:40,480 Speaker 8: that bare case that AI narrative against Google's core business 183 00:08:40,880 --> 00:08:43,360 Speaker 8: is not going anywhere for the foreseeable future. 184 00:08:44,440 --> 00:08:44,600 Speaker 9: Right. 185 00:08:44,640 --> 00:08:47,640 Speaker 2: The technology story I see is quite simple. How does 186 00:08:47,840 --> 00:08:51,439 Speaker 2: the Gemini model become more embedded across all of Google's business? 187 00:08:52,040 --> 00:08:54,160 Speaker 2: But I guess i'd love to know where you want 188 00:08:54,200 --> 00:08:57,040 Speaker 2: to see it show up in the financial results to 189 00:08:57,080 --> 00:08:58,880 Speaker 2: give you faith that the payoff is there. 190 00:09:00,480 --> 00:09:03,160 Speaker 8: Yeah, you know, I think the most important piece and 191 00:09:03,240 --> 00:09:03,600 Speaker 8: it's not. 192 00:09:04,040 --> 00:09:07,800 Speaker 6: I don't think it gets enough focus. Is Gemini the model? 193 00:09:07,960 --> 00:09:08,240 Speaker 9: Right? 194 00:09:08,480 --> 00:09:10,920 Speaker 8: Partially, it's just because of the brand. People have learned 195 00:09:10,920 --> 00:09:14,520 Speaker 8: the name. It's obviously driving the Gemini app, and that 196 00:09:14,640 --> 00:09:18,880 Speaker 8: is important. Where we're actually really focused is certainly on 197 00:09:18,960 --> 00:09:19,800 Speaker 8: AI overviews. 198 00:09:19,880 --> 00:09:22,640 Speaker 6: But bringing Gemini to AI mode, I call it the 199 00:09:22,960 --> 00:09:25,239 Speaker 6: my mom test. Right when my mom. 200 00:09:25,040 --> 00:09:27,560 Speaker 8: Is suddenly using some of these tools, we know they're 201 00:09:27,600 --> 00:09:30,760 Speaker 8: really hitting sort of broad based. In fairness, my mom 202 00:09:30,800 --> 00:09:32,800 Speaker 8: doesn't do a lot with technology, So there it is. 203 00:09:32,840 --> 00:09:36,000 Speaker 8: But the point is that if you're spoon feeding AI 204 00:09:36,160 --> 00:09:39,320 Speaker 8: mode to people that would ultimately just be coming to 205 00:09:39,360 --> 00:09:42,480 Speaker 8: Google for normal purposes, and you've got the power of 206 00:09:42,520 --> 00:09:45,760 Speaker 8: a really solid set of Gemini models, that's where I 207 00:09:45,800 --> 00:09:49,040 Speaker 8: think it becomes to a bigger and bigger tailwind. 208 00:09:48,679 --> 00:09:49,680 Speaker 6: For these guys. 209 00:09:50,520 --> 00:09:50,840 Speaker 4: Brad. 210 00:09:50,840 --> 00:09:53,680 Speaker 2: We got the White House's AI action plan this morning, 211 00:09:53,679 --> 00:09:56,680 Speaker 2: twenty three pages. I printed it out for you, so 212 00:09:56,840 --> 00:09:59,439 Speaker 2: for some light reading. Later in the program, we'll get 213 00:09:59,440 --> 00:10:01,640 Speaker 2: into the detail and the politics of it. But the 214 00:10:01,640 --> 00:10:04,599 Speaker 2: simple question is whether or not Alphabet is going to 215 00:10:04,640 --> 00:10:08,640 Speaker 2: be a beneficiary of what this administration wants America to 216 00:10:08,679 --> 00:10:09,280 Speaker 2: do in AI. 217 00:10:09,400 --> 00:10:10,319 Speaker 4: Do you think it will be. 218 00:10:13,120 --> 00:10:15,720 Speaker 8: Generally yes, But I do think there's going to be 219 00:10:16,480 --> 00:10:21,040 Speaker 8: more and more attention paid to how sort of equitable 220 00:10:21,280 --> 00:10:24,920 Speaker 8: the value distribution is of AI. I think that's something 221 00:10:24,960 --> 00:10:26,920 Speaker 8: we spend a lot of time thinking about these days, 222 00:10:26,920 --> 00:10:29,760 Speaker 8: which is, I think if you look at the parts 223 00:10:29,800 --> 00:10:32,360 Speaker 8: and pieces of what we know of AI today, it 224 00:10:32,360 --> 00:10:34,960 Speaker 8: would suggest that a lot of the value could accrue 225 00:10:35,040 --> 00:10:38,080 Speaker 8: to only a very few number of companies. And I 226 00:10:38,080 --> 00:10:40,360 Speaker 8: don't think that's going to work bigger picture from a 227 00:10:40,400 --> 00:10:42,079 Speaker 8: regulatory perspective. 228 00:10:41,760 --> 00:10:44,600 Speaker 6: And the reason we like Google in that perspective is. 229 00:10:44,840 --> 00:10:48,840 Speaker 8: Google is the distributor of traffic right the biggest one 230 00:10:48,880 --> 00:10:51,080 Speaker 8: on the Internet, and I don't see that changing, and 231 00:10:51,120 --> 00:10:53,599 Speaker 8: so I actually think that plays quite well into the 232 00:10:53,640 --> 00:10:55,800 Speaker 8: regulatory framework going forward. 233 00:10:56,320 --> 00:10:59,600 Speaker 1: Let's go to regulatory overhang just the last case though, Brad, 234 00:10:59,640 --> 00:11:02,360 Speaker 1: because that is the cloud you signal coming in August. 235 00:11:02,800 --> 00:11:03,520 Speaker 3: What do you brace for. 236 00:11:03,880 --> 00:11:06,840 Speaker 1: Do you think Judge Meta would break up the company? 237 00:11:08,640 --> 00:11:10,400 Speaker 6: Shorty answer is we don't. We don't think so. 238 00:11:10,840 --> 00:11:12,480 Speaker 8: I think that we have we ascribe kind of a 239 00:11:12,520 --> 00:11:15,000 Speaker 8: lower probability to that. But there's sort of two or 240 00:11:15,040 --> 00:11:17,400 Speaker 8: three things we think about. Number one is you're not 241 00:11:17,440 --> 00:11:19,760 Speaker 8: going to be able to pay for placement nd fall search. 242 00:11:19,800 --> 00:11:22,199 Speaker 6: We're pretty certain that's that's that is going away. 243 00:11:22,880 --> 00:11:26,080 Speaker 8: Two, there could be some some sort of opening up 244 00:11:26,120 --> 00:11:29,880 Speaker 8: the kimono on data that Google has to competitors. We 245 00:11:29,920 --> 00:11:32,480 Speaker 8: actually don't think that matters that much, but that could 246 00:11:32,520 --> 00:11:34,680 Speaker 8: certainly play out. And then the third one is the 247 00:11:34,720 --> 00:11:38,679 Speaker 8: divest at your potential of Chrome, and there are stances. 248 00:11:39,160 --> 00:11:42,520 Speaker 8: You know, Chrome's not a business, it's a product. I 249 00:11:42,559 --> 00:11:45,600 Speaker 8: think the maybe the dj comments sort of ignored that 250 00:11:45,679 --> 00:11:50,120 Speaker 8: piece in their aspirations to have that piece of it removed, 251 00:11:50,400 --> 00:11:53,840 Speaker 8: and so ultimately you can they could force them to 252 00:11:53,840 --> 00:11:57,560 Speaker 8: do that. It's certainly possible, but then you're introducing a 253 00:11:57,720 --> 00:12:02,439 Speaker 8: whole other set of issues, as we've seen Perplexity, open AI, 254 00:12:02,559 --> 00:12:05,600 Speaker 8: all these companies talking about opening browsers right, it's clearly 255 00:12:05,600 --> 00:12:07,240 Speaker 8: going to be very important for distribution. 256 00:12:07,960 --> 00:12:11,280 Speaker 6: Seems incredibly arbitrary to sort of. 257 00:12:11,200 --> 00:12:14,320 Speaker 8: Hand away Google's browser in the hands of another when 258 00:12:14,320 --> 00:12:16,320 Speaker 8: they're saying that is going to be critical to the 259 00:12:16,320 --> 00:12:18,160 Speaker 8: technology innovation here for the future. 260 00:12:18,200 --> 00:12:20,720 Speaker 6: It would just be handing value away. So we see 261 00:12:20,760 --> 00:12:22,280 Speaker 6: low likelihood of that happening. 262 00:12:23,880 --> 00:12:27,040 Speaker 2: Brad ericson RBC Capital Markets into the analysts, pushing ahead 263 00:12:27,040 --> 00:12:28,680 Speaker 2: to alphabet after the bell, thank you. 264 00:12:28,720 --> 00:12:30,320 Speaker 4: The other name after the bell is Tesla. 265 00:12:30,600 --> 00:12:33,199 Speaker 2: This is a stock that's down seventeen percent year to date, 266 00:12:33,280 --> 00:12:35,400 Speaker 2: it's up half a percent in the moment, and the 267 00:12:35,480 --> 00:12:39,080 Speaker 2: data carro is like probably biggest dropping revenue for a 268 00:12:39,120 --> 00:12:42,000 Speaker 2: decade year on year, but the street probably looking past 269 00:12:42,040 --> 00:12:43,959 Speaker 2: that because it's not about selling cars anymore. 270 00:12:44,280 --> 00:12:46,920 Speaker 1: It's not it's about one man really and his vision. 271 00:12:47,000 --> 00:12:50,120 Speaker 1: And let's just stick with Elon and Elon's enpart because actually, look, 272 00:12:50,240 --> 00:12:53,000 Speaker 1: you took a look at the language the fine print 273 00:12:53,040 --> 00:12:55,400 Speaker 1: included in the tender off of this going on for SpaceX, right, 274 00:12:55,440 --> 00:12:57,920 Speaker 1: and you notice that there's a new little warning just 275 00:12:57,960 --> 00:13:01,080 Speaker 1: tucked in there about his potential to get more involved 276 00:13:01,120 --> 00:13:01,680 Speaker 1: in politics. 277 00:13:02,800 --> 00:13:05,280 Speaker 2: Yeah, so what we saw was the risk factors section 278 00:13:05,520 --> 00:13:08,480 Speaker 2: in the tender documents that valued SpaceX at four hundred 279 00:13:08,480 --> 00:13:11,160 Speaker 2: billion dollars. Right, and this is what it literally says. 280 00:13:11,200 --> 00:13:13,960 Speaker 2: It acknowledges that Musk was previously a senior advisor to 281 00:13:13,960 --> 00:13:14,760 Speaker 2: President Trump. 282 00:13:14,559 --> 00:13:15,559 Speaker 4: As part of DOGE. 283 00:13:15,720 --> 00:13:18,200 Speaker 2: But also this is the key bit, may in the 284 00:13:18,240 --> 00:13:21,520 Speaker 2: future serve in similar roles in devote significant time and 285 00:13:21,679 --> 00:13:24,840 Speaker 2: energy to such roles. The reason that's important right now 286 00:13:24,840 --> 00:13:28,080 Speaker 2: and analogous to Tesla, is that Tesla investors are also 287 00:13:28,160 --> 00:13:30,520 Speaker 2: saying all we need to hear is that Musk is 288 00:13:30,559 --> 00:13:33,680 Speaker 2: committed to the company and other companies, not necessarily what 289 00:13:33,720 --> 00:13:35,720 Speaker 2: his political beliefs. So I think that's kind of what 290 00:13:35,760 --> 00:13:36,439 Speaker 2: we're watching for. 291 00:13:36,559 --> 00:13:38,199 Speaker 1: And look, he's been trying to signal that on X 292 00:13:38,320 --> 00:13:41,280 Speaker 1: right he's sleeping, eating, repeating work. 293 00:13:41,240 --> 00:13:43,559 Speaker 3: Amid a little bit of like childcare. 294 00:13:44,840 --> 00:13:47,680 Speaker 2: Yeah, seven days a week back at the company. But 295 00:13:47,679 --> 00:13:50,400 Speaker 2: there's this big overhang about the America Party, and people 296 00:13:50,440 --> 00:13:53,040 Speaker 2: on X are saying, will he even address the America 297 00:13:53,080 --> 00:13:55,280 Speaker 2: Party thing during Tesla's earnings calls. 298 00:13:55,360 --> 00:13:56,679 Speaker 4: That's the state of play right now. 299 00:13:56,760 --> 00:13:59,840 Speaker 1: Yeah, Well, we keep our eyes on it. More coming 300 00:13:59,920 --> 00:14:05,800 Speaker 1: up up right now on the Microsoft SharePoint TCAD. It's widening. 301 00:14:09,320 --> 00:14:09,440 Speaker 9: Now. 302 00:14:09,480 --> 00:14:12,360 Speaker 1: The number of companies and organizations that have been breached 303 00:14:12,400 --> 00:14:15,120 Speaker 1: by the hack on Microsoft's SharePoint has going to about 304 00:14:15,160 --> 00:14:18,360 Speaker 1: four hundred entities now, but it's according to Bloomberg reporting 305 00:14:18,400 --> 00:14:21,040 Speaker 1: that this includes the US National Nuclear. 306 00:14:20,680 --> 00:14:24,120 Speaker 3: Security Administration, which of course oversees the design of nuclear weapons. 307 00:14:24,360 --> 00:14:27,600 Speaker 3: For more, Bloomberg's Jake Bleiberg joins us and just how 308 00:14:27,960 --> 00:14:29,240 Speaker 3: extreme are these hacks? 309 00:14:29,280 --> 00:14:31,440 Speaker 1: What sort of information do we understand that they've managed 310 00:14:31,440 --> 00:14:31,800 Speaker 1: to gather? 311 00:14:32,320 --> 00:14:35,680 Speaker 10: So we're still learning about what they're gathering, and it's 312 00:14:35,720 --> 00:14:36,800 Speaker 10: a hard question to answer. 313 00:14:36,840 --> 00:14:37,720 Speaker 4: In a lot of cases. 314 00:14:38,000 --> 00:14:40,720 Speaker 10: The thing we know they've taken in at least some 315 00:14:40,760 --> 00:14:47,160 Speaker 10: instances are signing credentials, user names, passwords, other information that's 316 00:14:47,280 --> 00:14:51,200 Speaker 10: used to secure systems. And that's particularly concerning because it 317 00:14:51,240 --> 00:14:54,400 Speaker 10: means the hackers can potentially branch out from what the 318 00:14:54,920 --> 00:14:58,360 Speaker 10: one system they got into here, Jake. 319 00:14:58,440 --> 00:15:01,640 Speaker 2: When Bloomberg break the storyline last night about this particular 320 00:15:01,720 --> 00:15:05,320 Speaker 2: agency being hacked that is responsible for the development and 321 00:15:05,400 --> 00:15:10,440 Speaker 2: disposal of nuclear weapons, understandably, loads of Americans on social 322 00:15:10,520 --> 00:15:11,120 Speaker 2: media were like. 323 00:15:11,160 --> 00:15:13,240 Speaker 4: What on earth are we in trouble? 324 00:15:13,960 --> 00:15:15,920 Speaker 2: Do we know the limits of what the hackers were 325 00:15:15,920 --> 00:15:18,640 Speaker 2: able to gather what is the agency's response. I think 326 00:15:18,640 --> 00:15:20,480 Speaker 2: it's a time where we just like, here's the reality 327 00:15:20,480 --> 00:15:21,120 Speaker 2: of the situation. 328 00:15:21,480 --> 00:15:27,280 Speaker 10: So what are reporting shows so far is that there 329 00:15:27,400 --> 00:15:32,480 Speaker 10: wasn't sensitive or classified information taken from this nuclear agency, 330 00:15:33,040 --> 00:15:37,160 Speaker 10: and that the classified information within it and most other 331 00:15:37,200 --> 00:15:41,400 Speaker 10: government agencies is sort of sectioned off from the type 332 00:15:41,400 --> 00:15:46,040 Speaker 10: of system that was easily breached in this attack. However, 333 00:15:46,240 --> 00:15:49,360 Speaker 10: as I just mentioned, one of the concerns here is 334 00:15:49,400 --> 00:15:52,000 Speaker 10: that once the hackers get in, they may be able 335 00:15:52,040 --> 00:15:54,080 Speaker 10: to branch out and burrow in elsewhere. 336 00:15:54,480 --> 00:15:57,480 Speaker 1: Now, what's interesting is the number of agencies in companies 337 00:15:57,520 --> 00:16:00,960 Speaker 1: and entities has been identified by Dutch cyber company at 338 00:16:00,960 --> 00:16:04,200 Speaker 1: the moment, this one being I Security. They're saying it's 339 00:16:04,240 --> 00:16:08,320 Speaker 1: largely US based, but actually very international. What has Microsoft 340 00:16:08,320 --> 00:16:10,680 Speaker 1: been identifying? They've of course told us who pers actually 341 00:16:10,720 --> 00:16:12,800 Speaker 1: the hackers are, but how are they keeping us abreast 342 00:16:12,800 --> 00:16:13,000 Speaker 1: of this? 343 00:16:13,320 --> 00:16:17,720 Speaker 10: So Microsoft has told us that at least two Chinese 344 00:16:18,000 --> 00:16:21,960 Speaker 10: state backed hacking groups are behind some of these attacks, 345 00:16:22,000 --> 00:16:25,320 Speaker 10: and that there's another group based in China that is 346 00:16:25,360 --> 00:16:29,880 Speaker 10: carrying out attacks to what we know is that the 347 00:16:29,920 --> 00:16:32,800 Speaker 10: servers that were made vulnerable by this attack, for the 348 00:16:33,040 --> 00:16:37,160 Speaker 10: common micro or soft software SharePoint are spread out all 349 00:16:37,200 --> 00:16:40,800 Speaker 10: over the globe, and that the number that we're potentially 350 00:16:40,920 --> 00:16:43,680 Speaker 10: vulnerable is in the thousand, it's not the hundreds. 351 00:16:43,960 --> 00:16:45,400 Speaker 4: So the scope of this is. 352 00:16:45,360 --> 00:16:48,800 Speaker 10: Really something that's still coming into view. And you know, 353 00:16:48,920 --> 00:16:52,240 Speaker 10: Microsoft up to now has not told us how many 354 00:16:52,280 --> 00:16:55,800 Speaker 10: of their customers have experienced breaches, Jake. 355 00:16:55,920 --> 00:16:59,360 Speaker 2: Many Microsoft customers watch this program, many Microsoft employees watch 356 00:16:59,400 --> 00:17:02,640 Speaker 2: this program. What has Microsoft told us in terms of 357 00:17:02,680 --> 00:17:04,280 Speaker 2: their response and how they're handling it. 358 00:17:04,600 --> 00:17:09,280 Speaker 10: So Microsoft moved quite quickly to roll out patches to 359 00:17:09,560 --> 00:17:11,960 Speaker 10: this vulnerability once they became. 360 00:17:11,760 --> 00:17:12,360 Speaker 6: Aware of it. 361 00:17:12,440 --> 00:17:16,040 Speaker 10: They rolled out a patch over the weekend and more 362 00:17:16,520 --> 00:17:19,520 Speaker 10: during the week to sort of try to close this 363 00:17:19,640 --> 00:17:20,920 Speaker 10: door and keep it shut. 364 00:17:21,320 --> 00:17:23,200 Speaker 6: But what we've heard from other. 365 00:17:23,080 --> 00:17:27,000 Speaker 10: Security researchers is that once the hackers are in, you're 366 00:17:27,040 --> 00:17:30,119 Speaker 10: still potentially vulnerable. Closing the door once they're in the 367 00:17:30,119 --> 00:17:33,960 Speaker 10: house doesn't solve your problems, and that really requires sort 368 00:17:33,960 --> 00:17:36,640 Speaker 10: of continuing to search and understand did we. 369 00:17:36,600 --> 00:17:37,240 Speaker 4: Get hit. 370 00:17:38,680 --> 00:17:41,080 Speaker 2: Bloombergs Jake Bleiberg with ongoing reporting. 371 00:17:41,119 --> 00:17:42,000 Speaker 4: Thank you very much. 372 00:17:47,600 --> 00:17:50,359 Speaker 1: It's time now for talking tech and first up, Uber 373 00:17:50,600 --> 00:17:52,880 Speaker 1: is testing a ride option in the un The match 374 00:17:52,920 --> 00:17:55,440 Speaker 1: is female riders and drivers now. The safety feature is 375 00:17:55,480 --> 00:17:58,800 Speaker 1: already available in some international markets. The pilot will launch 376 00:17:58,840 --> 00:18:00,840 Speaker 1: in Los Angeles, San Fransle, us Go, and Detroit in 377 00:18:00,880 --> 00:18:01,639 Speaker 1: the next few weeks. 378 00:18:01,840 --> 00:18:04,040 Speaker 3: Has long been offered by Lyft Plus. 379 00:18:04,119 --> 00:18:07,760 Speaker 1: Sonos has named interim leader Tom Conrad as chief executive officer. 380 00:18:07,960 --> 00:18:10,280 Speaker 1: The appointment is a vote of confidence in his effort 381 00:18:10,320 --> 00:18:13,360 Speaker 1: to get the struggling audio company back on track after 382 00:18:13,400 --> 00:18:16,399 Speaker 1: a disastrous software launch that hurts sales and force the 383 00:18:16,400 --> 00:18:17,760 Speaker 1: company to layoff workers. 384 00:18:18,480 --> 00:18:20,800 Speaker 3: And the UK's antitrust watchdog. 385 00:18:20,520 --> 00:18:24,320 Speaker 1: Is proposing giving Apple and Google's Android so called strategic 386 00:18:24,440 --> 00:18:27,159 Speaker 1: market status now. The move would pave the way for 387 00:18:27,200 --> 00:18:30,280 Speaker 1: regulation of their mobile operating systems, app stores and mobile 388 00:18:30,359 --> 00:18:31,359 Speaker 1: web browsers. 389 00:18:31,720 --> 00:18:35,399 Speaker 2: Ed a stick with Apple, it's launching a new version 390 00:18:35,440 --> 00:18:38,920 Speaker 2: of its device insurance plan Apple Care. The new twenty 391 00:18:38,920 --> 00:18:41,920 Speaker 2: dollars a month plan can cover up to three devices. 392 00:18:41,960 --> 00:18:45,760 Speaker 2: Bloomberg Sam Kelly has the details. So often have I 393 00:18:45,800 --> 00:18:48,640 Speaker 2: tapped into Apple Care having dropped this thing on the floor? 394 00:18:49,000 --> 00:18:51,280 Speaker 2: What's new about it? Why are they updating it? 395 00:18:51,960 --> 00:18:52,160 Speaker 10: HI? 396 00:18:52,240 --> 00:18:52,720 Speaker 3: Good morning? 397 00:18:52,800 --> 00:18:53,040 Speaker 4: Yeah. 398 00:18:53,080 --> 00:18:56,760 Speaker 11: So, basically, this new twenty dollars a month subscription allows 399 00:18:56,760 --> 00:18:59,800 Speaker 11: you to have three different devices of any different base. 400 00:19:00,000 --> 00:19:00,679 Speaker 3: And also you could have. 401 00:19:00,680 --> 00:19:03,399 Speaker 11: A newer iPhone or a Vision Pro or an Apple 402 00:19:03,440 --> 00:19:09,040 Speaker 11: Watch and for twenty dollars, it will protect against spills, accidents, 403 00:19:09,480 --> 00:19:13,119 Speaker 11: crack screens, you can talk to somebody twenty four seven 404 00:19:13,200 --> 00:19:17,960 Speaker 11: if you have it, help battery replacements before Previously, the 405 00:19:18,000 --> 00:19:21,520 Speaker 11: company has long offered a subscription plan where you can 406 00:19:21,560 --> 00:19:24,720 Speaker 11: opt into the same type of thing for the iPhone, 407 00:19:24,720 --> 00:19:26,240 Speaker 11: but you would have to pay for it almost a 408 00:19:26,320 --> 00:19:28,080 Speaker 11: la carte. So if you had an Apple Watch, you'd 409 00:19:28,080 --> 00:19:30,200 Speaker 11: have to do just that, you'd have to do the iPhone. 410 00:19:30,320 --> 00:19:34,040 Speaker 11: This bundles packages everything very nicely together for twenty dollars 411 00:19:34,119 --> 00:19:36,440 Speaker 11: a month, and in theory there could be some savings 412 00:19:36,440 --> 00:19:39,840 Speaker 11: here for some consumers as well, and obviously a subscription 413 00:19:39,960 --> 00:19:41,280 Speaker 11: play for Apple as well. 414 00:19:41,560 --> 00:19:44,320 Speaker 1: Let's go there because I can see what the appetizing 415 00:19:44,320 --> 00:19:47,160 Speaker 1: for consumer, particularly if there's loss and theft coverage. 416 00:19:47,680 --> 00:19:48,840 Speaker 3: What is in this for Apple? 417 00:19:48,920 --> 00:19:51,560 Speaker 11: Yeah, so this is a major play for Apple. Again, 418 00:19:51,840 --> 00:19:54,640 Speaker 11: you know, devices and insurance isn't exactly it doesn't sound 419 00:19:54,640 --> 00:19:57,040 Speaker 11: sexy on the service, but there is a major play here. 420 00:19:57,200 --> 00:19:59,960 Speaker 3: So basically the services to. 421 00:20:00,240 --> 00:20:04,120 Speaker 11: In general is Apple's second biggest money maker behind the iPhone. 422 00:20:04,119 --> 00:20:05,240 Speaker 3: Not only is it the. 423 00:20:05,200 --> 00:20:08,879 Speaker 11: App Store, there's Apple TV Plus, there's Apple Fitness, there's iCloud. 424 00:20:09,240 --> 00:20:14,679 Speaker 11: So here with Apple Care you're able to keep you 425 00:20:14,760 --> 00:20:18,000 Speaker 11: have two billion devices out there. This is people who 426 00:20:18,080 --> 00:20:19,720 Speaker 11: maybe have one device ensured. 427 00:20:19,880 --> 00:20:21,160 Speaker 3: If that this is. 428 00:20:21,240 --> 00:20:23,399 Speaker 11: Money that they would be able to make, and it 429 00:20:23,440 --> 00:20:26,160 Speaker 11: would in theory, help upset some of the different challenges 430 00:20:26,160 --> 00:20:28,679 Speaker 11: that they're seeing right now around the Apple Store or 431 00:20:28,800 --> 00:20:33,600 Speaker 11: lagging behind AI in certain areas, against competitors trying to 432 00:20:33,840 --> 00:20:37,040 Speaker 11: drum up subscription sales in general. And this is money 433 00:20:37,040 --> 00:20:40,360 Speaker 11: that potentially people might not be paying, but they might say, 434 00:20:40,359 --> 00:20:42,040 Speaker 11: you know what, for twenty dollars a month, if my 435 00:20:42,080 --> 00:20:44,720 Speaker 11: phone breaks, if I lose it, maybe this is enticing 436 00:20:44,840 --> 00:20:45,520 Speaker 11: enough for me to do it. 437 00:20:45,600 --> 00:20:47,359 Speaker 1: Where all the limitations though, for me, I think the 438 00:20:47,400 --> 00:20:49,960 Speaker 1: off putting thing is, Yes, I can see you want. 439 00:20:49,880 --> 00:20:51,520 Speaker 3: Into opt in if you're buying a new device, but 440 00:20:51,560 --> 00:20:52,159 Speaker 3: then to get. 441 00:20:52,040 --> 00:20:54,119 Speaker 1: The oldest stuff that you already have, and should you 442 00:20:54,280 --> 00:20:57,160 Speaker 1: kind of go to get it diagnostically tested, Yes. 443 00:20:57,040 --> 00:20:57,320 Speaker 5: You do. 444 00:20:57,440 --> 00:21:00,320 Speaker 11: So you have to go through a short sort of 445 00:21:00,440 --> 00:21:03,280 Speaker 11: a several minutes testing to make sure that the screen 446 00:21:03,400 --> 00:21:06,760 Speaker 11: is okay, you know, the battery they want to make 447 00:21:06,800 --> 00:21:09,639 Speaker 11: sure everything is okay before your insurance, almost like health insurance, 448 00:21:09,680 --> 00:21:11,280 Speaker 11: they want to make sure things are okay. 449 00:21:12,119 --> 00:21:14,320 Speaker 3: But it does go back four years. 450 00:21:14,320 --> 00:21:16,240 Speaker 11: So you might say, you know, I have a brand 451 00:21:16,280 --> 00:21:18,080 Speaker 11: new iPhone, but I haven't bought an Apple Watch in 452 00:21:18,119 --> 00:21:20,600 Speaker 11: quite a while, and so this might be a way 453 00:21:20,640 --> 00:21:22,520 Speaker 11: for you to say, oh, you know, maybe I can 454 00:21:22,640 --> 00:21:24,040 Speaker 11: opt into something a little bit more. 455 00:21:24,520 --> 00:21:27,000 Speaker 1: Bloomberg'smartha Kelly, great analysis. 456 00:21:27,040 --> 00:21:35,520 Speaker 3: We appreciate it. Welcome back to Bluemberg Tech. Let's check 457 00:21:35,520 --> 00:21:36,399 Speaker 3: in on these markets. 458 00:21:36,119 --> 00:21:38,359 Speaker 1: Because actually tech it's kind of under performing some of 459 00:21:38,359 --> 00:21:41,600 Speaker 1: the other major benchmarks today. There is uplifted euphoria around 460 00:21:41,680 --> 00:21:42,880 Speaker 1: Japan US trade deal. 461 00:21:42,960 --> 00:21:43,680 Speaker 3: Is there more to come? 462 00:21:43,720 --> 00:21:45,879 Speaker 1: But on the big tech benchmark were flat on the 463 00:21:45,960 --> 00:21:48,880 Speaker 1: NASA one hundred, we had some key earnings that drag us. 464 00:21:48,800 --> 00:21:50,760 Speaker 3: Lower from a point's perspective. Let's dig into them. 465 00:21:50,800 --> 00:21:53,200 Speaker 1: Texas Instruments and we talked about it at the top 466 00:21:53,200 --> 00:21:53,680 Speaker 1: of the show. 467 00:21:53,960 --> 00:21:56,800 Speaker 3: It is having its worst day since two thousand and eight. 468 00:21:57,040 --> 00:21:59,639 Speaker 1: Clear global tariffs impact to the business, but the executives 469 00:21:59,680 --> 00:22:00,840 Speaker 1: can't all articulate. 470 00:22:00,520 --> 00:22:02,760 Speaker 3: How much is there is a pull forward. 471 00:22:02,440 --> 00:22:04,800 Speaker 1: On the previous quarter and it just didn't live up 472 00:22:04,920 --> 00:22:07,639 Speaker 1: to the expectations of investors. Meanwhile, we're also down on 473 00:22:07,760 --> 00:22:10,480 Speaker 1: SAP and trading in Europe. We've just closed the market, 474 00:22:10,520 --> 00:22:11,400 Speaker 1: were off by five. 475 00:22:11,240 --> 00:22:14,120 Speaker 3: Percent again, Tariff headwinds, the dollar. 476 00:22:13,800 --> 00:22:16,760 Speaker 1: Weakness impacting this particular software business. 477 00:22:16,520 --> 00:22:18,960 Speaker 4: At okay AI. 478 00:22:19,080 --> 00:22:22,320 Speaker 2: Leaders are gathering here in Washington as President Trump is 479 00:22:22,320 --> 00:22:25,240 Speaker 2: set to give an address on his AI roadmap for 480 00:22:25,359 --> 00:22:29,240 Speaker 2: the United States. Details that it includes the rapid buildout 481 00:22:29,280 --> 00:22:33,639 Speaker 2: of data centers and the removal of quote onerous AI regulations. 482 00:22:33,680 --> 00:22:37,080 Speaker 2: Bloomberg's Michael Sheppard joins us with more. We've both printed 483 00:22:37,080 --> 00:22:39,960 Speaker 2: it out, all twenty three pages. We haven't read the 484 00:22:40,119 --> 00:22:43,520 Speaker 2: entirety of it, skimmed it, but we've been talking for 485 00:22:43,560 --> 00:22:47,000 Speaker 2: a while about how the focus of the document, it's 486 00:22:47,000 --> 00:22:50,959 Speaker 2: infrastructure related, the American technology stack and the energy to 487 00:22:50,960 --> 00:22:53,960 Speaker 2: support it is their substance to it, and. 488 00:22:54,040 --> 00:22:56,840 Speaker 12: Well, the substance will really bear out over time mat 489 00:22:56,880 --> 00:22:59,840 Speaker 12: as we see a lot of administrations and all those 490 00:23:00,080 --> 00:23:04,080 Speaker 12: up administration, but all of its predecessors have flooded Washington 491 00:23:04,119 --> 00:23:07,560 Speaker 12: with these sorts of policy directives in the past, and 492 00:23:07,600 --> 00:23:09,680 Speaker 12: the catch here will be to see whether they can 493 00:23:09,760 --> 00:23:13,840 Speaker 12: actually gain some traction with this document, not only with industry, 494 00:23:13,920 --> 00:23:17,240 Speaker 12: but also with Congress, with the federal bureaucracy, with the 495 00:23:17,240 --> 00:23:19,960 Speaker 12: agencies that they currently oversee, and then at the state 496 00:23:20,040 --> 00:23:22,399 Speaker 12: and local level too. They have to make sure that 497 00:23:22,840 --> 00:23:25,480 Speaker 12: a lot of this can be done. And it's an 498 00:23:25,520 --> 00:23:29,560 Speaker 12: onerous process. They talk about removing onerous regulations, but they 499 00:23:29,600 --> 00:23:31,600 Speaker 12: will have a lot of digging to do on it. 500 00:23:31,800 --> 00:23:34,080 Speaker 12: That is, to cut some of the red tape that 501 00:23:34,119 --> 00:23:36,600 Speaker 12: they talk about right in the beginning of the report. 502 00:23:36,880 --> 00:23:39,000 Speaker 12: To also try to pave the way not only for 503 00:23:39,040 --> 00:23:41,800 Speaker 12: the data centers, but for the energy needed to power them. 504 00:23:41,840 --> 00:23:42,640 Speaker 4: That's a big deal. 505 00:23:42,840 --> 00:23:44,679 Speaker 6: It's a big pillar of this. 506 00:23:44,920 --> 00:23:46,880 Speaker 12: And then also you talked about this, and we've talked 507 00:23:46,880 --> 00:23:49,040 Speaker 12: about this on the program before too, and it was 508 00:23:49,080 --> 00:23:53,280 Speaker 12: in your conversation with David Sachs just last week. Building 509 00:23:53,600 --> 00:23:57,040 Speaker 12: AI globally on the American tech stack. That's another pillar 510 00:23:57,160 --> 00:23:59,560 Speaker 12: of this document and it's something we'll have to watch 511 00:23:59,800 --> 00:24:01,800 Speaker 12: to see how they implement, yeah. 512 00:24:01,680 --> 00:24:05,080 Speaker 1: Sort of helping promote exports to an extent. Mike dig 513 00:24:05,119 --> 00:24:07,560 Speaker 1: into what they're looking at abroad right now, because yes, 514 00:24:07,640 --> 00:24:10,919 Speaker 1: there's been anxiety about states going it alone, but meanwhile 515 00:24:10,960 --> 00:24:12,560 Speaker 1: Europe's on top of AI regulation. 516 00:24:12,720 --> 00:24:13,720 Speaker 3: How do they counteract that. 517 00:24:15,240 --> 00:24:17,040 Speaker 12: Well, what they're trying to do first is set the 518 00:24:17,080 --> 00:24:19,520 Speaker 12: tone here in use when it comes to regulation of 519 00:24:19,640 --> 00:24:23,359 Speaker 12: AI by pursuing what they consider to be a lighter 520 00:24:23,640 --> 00:24:27,480 Speaker 12: touch CARO. More importantly, though, they are focusing on deployment 521 00:24:27,600 --> 00:24:31,439 Speaker 12: of technology and the infrastructure that is needed to power 522 00:24:31,480 --> 00:24:33,840 Speaker 12: it abroad, and that is why in part you saw 523 00:24:33,880 --> 00:24:36,959 Speaker 12: the relaxation of the export curbs on Age twenty eight 524 00:24:37,080 --> 00:24:40,200 Speaker 12: chips from Nvidia to China. And this is a step 525 00:24:40,200 --> 00:24:44,000 Speaker 12: that the administration sees and certainly one that Jensen Wang endorses. 526 00:24:44,600 --> 00:24:47,440 Speaker 12: That's needed to be able to have American companies, especially 527 00:24:47,440 --> 00:24:51,160 Speaker 12: in Vidia, competing in China so that it doesn't make 528 00:24:51,200 --> 00:24:53,840 Speaker 12: it so easy for China to be able to export 529 00:24:53,880 --> 00:24:58,240 Speaker 12: its own technology, perfected at home, to other markets as well. 530 00:24:58,280 --> 00:25:00,400 Speaker 4: And that's a really critical step for them. 531 00:25:00,600 --> 00:25:03,639 Speaker 12: They've articulated here, and President Donald Trump will be signing 532 00:25:03,760 --> 00:25:07,240 Speaker 12: orders later today to implement parts of this plan. Among them, 533 00:25:07,280 --> 00:25:13,399 Speaker 12: we expect to see orders instructing US export agencies to 534 00:25:13,520 --> 00:25:17,359 Speaker 12: take steps that would enhance deployment of American technology and 535 00:25:17,520 --> 00:25:21,920 Speaker 12: export of not only just the chips themselves, but everything 536 00:25:21,920 --> 00:25:26,520 Speaker 12: that goes with it, for the software and everything else too, Caro, 537 00:25:27,040 --> 00:25:27,600 Speaker 12: Max Mike. 538 00:25:27,480 --> 00:25:29,000 Speaker 3: Shephard with the latest on the report. 539 00:25:29,040 --> 00:25:31,200 Speaker 1: We appreciate it that for more in the future of 540 00:25:31,240 --> 00:25:34,520 Speaker 1: AI and President Trump's Action Plan, Naarena singers with us 541 00:25:34,600 --> 00:25:37,280 Speaker 1: Cudo AI CEO. You really look at the way in 542 00:25:37,280 --> 00:25:39,720 Speaker 1: which we can implement AI from a governance perspective, from 543 00:25:39,720 --> 00:25:43,840 Speaker 1: a rose tolerance perspective, from a cultural perspective within businesses Navarna, 544 00:25:43,880 --> 00:25:46,240 Speaker 1: when you're looking at this report, when you're thinking about 545 00:25:46,320 --> 00:25:49,119 Speaker 1: AI being more hands off, more pro growth, is that 546 00:25:49,160 --> 00:25:49,600 Speaker 1: the right way? 547 00:25:51,960 --> 00:25:54,240 Speaker 9: Well, good to see you, Caroline, and today we really 548 00:25:54,240 --> 00:25:57,320 Speaker 9: commend the White House on launching the AI Action Plan. 549 00:25:57,640 --> 00:25:59,320 Speaker 3: I think if you dive a little bit deeper into 550 00:25:59,359 --> 00:26:01,760 Speaker 3: the AI Action Plan, there's a key, key. 551 00:26:01,600 --> 00:26:06,040 Speaker 9: Statement and sentiment which is the bottleneck to harnessing AI's 552 00:26:06,040 --> 00:26:10,399 Speaker 9: full potential is not necessarily the availability of models or 553 00:26:10,400 --> 00:26:14,119 Speaker 9: tooled an application. It is slow adoption and central to 554 00:26:14,200 --> 00:26:16,560 Speaker 9: that is lack of trust. And I think, as you 555 00:26:16,640 --> 00:26:18,760 Speaker 9: know that Tredo AI has been on this journey to 556 00:26:18,880 --> 00:26:22,959 Speaker 9: embed that trust in the full AI life cycle, and 557 00:26:23,040 --> 00:26:26,280 Speaker 9: I think the AI Action Plan is really diving deep 558 00:26:26,320 --> 00:26:29,600 Speaker 9: into it with how do you standardize evaluations, how do 559 00:26:29,680 --> 00:26:33,000 Speaker 9: you actually bring more transparency to AI so that you 560 00:26:33,040 --> 00:26:33,920 Speaker 9: can fuel. 561 00:26:33,680 --> 00:26:36,040 Speaker 3: Growth, but all that growth has. 562 00:26:35,920 --> 00:26:38,920 Speaker 9: To be grounded in trust, and that's what the Action 563 00:26:39,000 --> 00:26:39,920 Speaker 9: Plan is focused on. 564 00:26:41,359 --> 00:26:42,600 Speaker 4: Navarena Impillar. 565 00:26:42,720 --> 00:26:46,080 Speaker 2: One of the document, which is titled Accelerate AI Innovation. 566 00:26:46,280 --> 00:26:50,080 Speaker 2: Something very high up is the commitment to encourage open 567 00:26:50,280 --> 00:26:53,280 Speaker 2: source and open weight AI, and I thought that was 568 00:26:53,320 --> 00:26:56,520 Speaker 2: really interesting the prominence of it within the document. Why 569 00:26:56,600 --> 00:27:00,480 Speaker 2: is it important that this administration focuses on open source 570 00:27:00,480 --> 00:27:01,399 Speaker 2: and open way AI. 571 00:27:03,160 --> 00:27:04,399 Speaker 3: Yeah, ed, great question. 572 00:27:04,640 --> 00:27:08,199 Speaker 9: I think we've seen historically that open source really contributes 573 00:27:08,280 --> 00:27:12,240 Speaker 9: to more innovation and in artificial intelligence, especially with the 574 00:27:12,320 --> 00:27:15,520 Speaker 9: United States leading, we are finding a lot of great 575 00:27:15,520 --> 00:27:18,679 Speaker 9: innovation is coming from our open source ecosystem. So the 576 00:27:18,800 --> 00:27:23,000 Speaker 9: focus in the AI Action Plan on open source further 577 00:27:23,119 --> 00:27:27,359 Speaker 9: strengthens the capability for everyone else to build on top 578 00:27:27,480 --> 00:27:29,879 Speaker 9: of AI innovation at large scale. 579 00:27:31,720 --> 00:27:36,760 Speaker 2: There is a really heavy emphasis on deregulation, cutting red 580 00:27:36,800 --> 00:27:41,359 Speaker 2: tape to facilitate the infrastructure side of this. Does that 581 00:27:41,440 --> 00:27:44,919 Speaker 2: concern you that that's the plan as opposed to I 582 00:27:44,960 --> 00:27:49,440 Speaker 2: guess a codified or framework piece of rulemaking around AI. 583 00:27:52,240 --> 00:27:54,560 Speaker 9: So, as you know, creed OI serves some of the 584 00:27:54,640 --> 00:27:58,280 Speaker 9: largest global two thousand companies in the world, and what 585 00:27:58,320 --> 00:28:01,679 Speaker 9: we are finding is governance and oversight and control of 586 00:28:01,720 --> 00:28:04,359 Speaker 9: AI systems is not just tied to regulation. 587 00:28:05,000 --> 00:28:06,280 Speaker 4: It is really about. 588 00:28:06,080 --> 00:28:08,959 Speaker 9: Understanding these AI systems and making sure that you have 589 00:28:09,080 --> 00:28:12,480 Speaker 9: the right you know, not only standards, but also some 590 00:28:12,600 --> 00:28:15,560 Speaker 9: guardrails which are in place. So what we are going 591 00:28:15,600 --> 00:28:17,920 Speaker 9: to see I think coming out of this AI Action 592 00:28:18,080 --> 00:28:22,440 Speaker 9: Plan as stated, is a focus on more contextual evaluations, 593 00:28:22,560 --> 00:28:26,200 Speaker 9: which are paramount for making these systems happen. I would 594 00:28:26,280 --> 00:28:28,840 Speaker 9: like to see Obviously the CI action plans stretch a 595 00:28:28,880 --> 00:28:32,040 Speaker 9: little bit further into standardizing what does good look like 596 00:28:32,119 --> 00:28:33,760 Speaker 9: for AI and more to come on that soon. 597 00:28:34,359 --> 00:28:37,480 Speaker 1: Navarna, let's just tick into the global perspective you have 598 00:28:38,000 --> 00:28:40,880 Speaker 1: and the fact that the context is this is a 599 00:28:41,000 --> 00:28:43,440 Speaker 1: race and this is a win. It takes sol us 600 00:28:43,520 --> 00:28:46,240 Speaker 1: versus China. Is that what you're saying. 601 00:28:48,280 --> 00:28:49,000 Speaker 3: Absolutely? 602 00:28:49,080 --> 00:28:53,160 Speaker 9: You know what has been really important is this isn't 603 00:28:53,280 --> 00:28:56,560 Speaker 9: just a policy moment. I really believe this is a 604 00:28:56,560 --> 00:29:00,320 Speaker 9: moonshot moment for US and to continue lead leading and 605 00:29:00,440 --> 00:29:04,560 Speaker 9: artificial intelligence, US will need to lead with trust and 606 00:29:04,600 --> 00:29:06,320 Speaker 9: that's how we are going to unlock the power of 607 00:29:06,320 --> 00:29:07,200 Speaker 9: this technology. 608 00:29:07,520 --> 00:29:09,000 Speaker 3: So this is our arms race. 609 00:29:09,320 --> 00:29:12,120 Speaker 9: United States is leading, and it's going to be critical. 610 00:29:12,200 --> 00:29:13,120 Speaker 6: How we bring. 611 00:29:13,040 --> 00:29:16,840 Speaker 9: Our allies and partners together on this journey by grounding 612 00:29:16,880 --> 00:29:21,200 Speaker 9: them in trust, oversight, and right responsibility is going to 613 00:29:21,240 --> 00:29:21,600 Speaker 9: be key. 614 00:29:22,000 --> 00:29:24,240 Speaker 1: So when we go back to the open source question, 615 00:29:24,760 --> 00:29:28,040 Speaker 1: that feels in reaction to what happened with deep Seek 616 00:29:28,280 --> 00:29:31,520 Speaker 1: and China, and ultimately is that do you think where 617 00:29:31,560 --> 00:29:34,120 Speaker 1: this sentiment is coming from and what does that mean 618 00:29:34,160 --> 00:29:36,040 Speaker 1: for the players here in the United States is all 619 00:29:36,040 --> 00:29:37,800 Speaker 1: in our meta's viewpoint. 620 00:29:39,600 --> 00:29:42,600 Speaker 9: You know, Caroline, that's a great question. You know, United 621 00:29:42,640 --> 00:29:45,160 Speaker 9: States has been leading in artificial intelligence and we will 622 00:29:45,160 --> 00:29:48,680 Speaker 9: continue to maintain that leadership. The open source focus is 623 00:29:48,680 --> 00:29:51,240 Speaker 9: a really pivotal one because if we want to lead, 624 00:29:51,920 --> 00:29:57,400 Speaker 9: especially with heart sciences, in using artificial intelligence, building on 625 00:29:57,440 --> 00:30:00,480 Speaker 9: each other's work has always been foundational to how open 626 00:30:00,520 --> 00:30:03,240 Speaker 9: source works. So I don't think this is in reaction, 627 00:30:03,720 --> 00:30:06,520 Speaker 9: but this is a continued leadership from the United States 628 00:30:06,520 --> 00:30:08,719 Speaker 9: perspective in terms of how we are going to lead 629 00:30:08,760 --> 00:30:10,560 Speaker 9: an artificial intelligence. 630 00:30:12,120 --> 00:30:14,480 Speaker 2: Verna saying of credo AI, great to have you back 631 00:30:14,480 --> 00:30:14,920 Speaker 2: on the show. 632 00:30:14,960 --> 00:30:15,800 Speaker 4: Thank you very much. 633 00:30:16,440 --> 00:30:18,160 Speaker 1: This is bloombg Tech and you are looking in a 634 00:30:18,160 --> 00:30:19,360 Speaker 1: live shot at the principal room. 635 00:30:19,520 --> 00:30:21,000 Speaker 3: Check out the bloombg Tech podcast. 636 00:30:21,200 --> 00:30:24,360 Speaker 1: Find it on the terminal as well as online on Apple, Spotify, 637 00:30:24,520 --> 00:30:37,720 Speaker 1: and iHeart. This is Bloomberg compliance startup vanter Well. It's 638 00:30:37,760 --> 00:30:39,600 Speaker 1: raised one hundred and fifty million dollars in its Series 639 00:30:39,680 --> 00:30:42,959 Speaker 1: D round, bringing its valuation to over four billion dollars now. 640 00:30:43,000 --> 00:30:45,120 Speaker 1: The eight year old company helps businesses stay in line 641 00:30:45,160 --> 00:30:48,000 Speaker 1: with rules and regulations around managing and storing customer data. 642 00:30:48,320 --> 00:30:51,920 Speaker 1: Banta's CEO and co founder, Christina Kacciopo joins us. Now, 643 00:30:51,960 --> 00:30:53,480 Speaker 1: So the one hundred and fifty million what does that 644 00:30:53,520 --> 00:30:53,960 Speaker 1: help you do? 645 00:30:55,320 --> 00:30:59,160 Speaker 13: It helps us continue to help our customers build and 646 00:30:59,520 --> 00:31:01,360 Speaker 13: demonstrate trust across the internet. 647 00:31:01,880 --> 00:31:04,720 Speaker 1: Okay, demonstrates trust across the internet. I mean it immediately 648 00:31:04,800 --> 00:31:07,000 Speaker 1: makes me think of today's news flow. We're worrying about 649 00:31:07,040 --> 00:31:09,560 Speaker 1: Microsoft and the hack there. I mean, is this something 650 00:31:09,640 --> 00:31:13,200 Speaker 1: that you're worrying about more broadly, that security isn't strong enough, 651 00:31:13,200 --> 00:31:15,240 Speaker 1: particularly when it comes to access to third parties. 652 00:31:16,120 --> 00:31:18,760 Speaker 13: Yeah, I think what we've seen is security online. It's 653 00:31:18,880 --> 00:31:21,120 Speaker 13: an increasing concern. This has been true for years, It 654 00:31:21,200 --> 00:31:23,360 Speaker 13: been true for decades, it will continue to be true. 655 00:31:23,720 --> 00:31:25,760 Speaker 13: And it's not because smart people aren't working on it. 656 00:31:25,880 --> 00:31:28,760 Speaker 13: Lots of smart people are. It is just an increasingly 657 00:31:28,800 --> 00:31:32,080 Speaker 13: hard cat and mouse game as adversaries get stronger and 658 00:31:32,120 --> 00:31:35,440 Speaker 13: stronger now with AI as well, and so it is 659 00:31:35,520 --> 00:31:40,200 Speaker 13: increasingly hard for businesses to build out trustworthy platforms, secure 660 00:31:40,240 --> 00:31:43,120 Speaker 13: customer data, and we hope vantas a part in helping 661 00:31:43,160 --> 00:31:43,520 Speaker 13: them do that. 662 00:31:43,800 --> 00:31:46,040 Speaker 3: Twelve thousand of them already customers that you're helping. 663 00:31:46,240 --> 00:31:48,440 Speaker 1: What has been the demand like for your own AI 664 00:31:48,480 --> 00:31:50,560 Speaker 1: applications AI agents in particular. 665 00:31:51,400 --> 00:31:54,320 Speaker 13: Yeah, we launched our AI agents earlier this year. We've 666 00:31:54,360 --> 00:31:57,840 Speaker 13: seen great reception from customers. I think we've had the 667 00:31:57,920 --> 00:32:01,400 Speaker 13: agent's kind of automated a lot of manual worker customers. 668 00:32:01,440 --> 00:32:05,440 Speaker 13: We're doing customer It's like Duo Lingo and Ramp and 669 00:32:05,760 --> 00:32:08,880 Speaker 13: Snowflake are all using the AI agents to automate kind 670 00:32:08,880 --> 00:32:11,600 Speaker 13: of what we're manual security and compliance workflows. 671 00:32:11,960 --> 00:32:13,640 Speaker 1: What's interesting is the way in which you want to 672 00:32:13,680 --> 00:32:16,800 Speaker 1: expand now is by looking not just at companies, but 673 00:32:16,920 --> 00:32:19,480 Speaker 1: at governments and government agencies. 674 00:32:19,640 --> 00:32:20,680 Speaker 3: We can show your customers. 675 00:32:20,680 --> 00:32:23,560 Speaker 1: We can also show the vcs that are continuing to 676 00:32:23,640 --> 00:32:27,840 Speaker 1: back you, one of whom, of course is well the 677 00:32:27,880 --> 00:32:31,480 Speaker 1: business of Craft Ventures and that we associate with David Sachs. 678 00:32:31,920 --> 00:32:35,280 Speaker 1: Is he going to be able to open doors for you? 679 00:32:35,280 --> 00:32:38,000 Speaker 13: You know, what we've heard from David and Craft is 680 00:32:38,080 --> 00:32:40,959 Speaker 13: David is very focused on Washington, DC. He left an 681 00:32:40,960 --> 00:32:44,040 Speaker 13: incredibly strong team at Craft, but there's kind of strong 682 00:32:44,040 --> 00:32:46,480 Speaker 13: guardrails and in place between those two teams. So we 683 00:32:46,560 --> 00:32:49,160 Speaker 13: really enjoy working on you know, with the folks at Craft, 684 00:32:49,560 --> 00:32:52,760 Speaker 13: and you know, separately we're pursuing engagements in DC. But 685 00:32:53,320 --> 00:32:55,560 Speaker 13: from what I hear, David's really engaged with us work 686 00:32:55,600 --> 00:32:56,160 Speaker 13: with the government. 687 00:32:56,360 --> 00:32:59,080 Speaker 1: And do you think just in the current administration and 688 00:32:59,240 --> 00:33:01,960 Speaker 1: environment that they are more willing to work up with 689 00:33:02,080 --> 00:33:05,040 Speaker 1: startups such as yourself that government now is a more 690 00:33:05,120 --> 00:33:06,960 Speaker 1: accessible area for your company. 691 00:33:07,920 --> 00:33:11,640 Speaker 13: I think so we've seen this government be very receptive 692 00:33:11,720 --> 00:33:14,080 Speaker 13: to software providers. They want to get more software into 693 00:33:14,120 --> 00:33:19,320 Speaker 13: the government, save time, save money for taxpayers. And there's 694 00:33:19,320 --> 00:33:22,280 Speaker 13: programs like fed Ramp twenty x, this pilot that is 695 00:33:22,280 --> 00:33:26,160 Speaker 13: going through to help software providers prepare better and faster 696 00:33:26,280 --> 00:33:28,600 Speaker 13: to serve the government. Because US government is just a 697 00:33:28,640 --> 00:33:31,800 Speaker 13: different sort of customer than almost any other in the world. 698 00:33:31,920 --> 00:33:34,400 Speaker 1: It is, and what I'm interested there for is how 699 00:33:34,440 --> 00:33:37,360 Speaker 1: you beef yourself up to meet that demand. You said 700 00:33:37,360 --> 00:33:39,720 Speaker 1: that you want to continue to expanding, continuing to help 701 00:33:40,000 --> 00:33:42,560 Speaker 1: your own clients that you already have. Where are the 702 00:33:42,600 --> 00:33:45,560 Speaker 1: bottlenecks for you? Is it about hiring more talent? Is 703 00:33:45,600 --> 00:33:48,200 Speaker 1: it more about a marketing play just getting into. 704 00:33:48,120 --> 00:33:50,200 Speaker 3: The orbit of other businesses. 705 00:33:51,360 --> 00:33:53,600 Speaker 13: Talent is a huge part of it, and we are 706 00:33:53,640 --> 00:33:55,400 Speaker 13: only as good as the people who. 707 00:33:55,360 --> 00:33:56,000 Speaker 6: Work at Vanta. 708 00:33:56,120 --> 00:33:59,600 Speaker 13: At Vanta and there are all sorts of different pieces 709 00:33:59,640 --> 00:34:01,960 Speaker 13: of that. So AI talent is definitely a part of 710 00:34:02,000 --> 00:34:03,920 Speaker 13: it for a very hot area of the market. I'm 711 00:34:03,920 --> 00:34:07,400 Speaker 13: sure you're covering the government pieces another one again that 712 00:34:07,520 --> 00:34:10,880 Speaker 13: is just a specialized skill set. And so we are 713 00:34:10,960 --> 00:34:13,560 Speaker 13: hiring across the board, lots of roles, lots of opportunity. 714 00:34:13,680 --> 00:34:14,479 Speaker 3: And where are you hiring. 715 00:34:14,520 --> 00:34:16,920 Speaker 1: I know you've been beefing up offices in London, You've 716 00:34:16,920 --> 00:34:18,600 Speaker 1: been put data centers in Australia. 717 00:34:18,680 --> 00:34:21,440 Speaker 3: How global does this get? Quite global? 718 00:34:21,440 --> 00:34:23,840 Speaker 13: So we've got five global officers around the world follow 719 00:34:23,880 --> 00:34:27,480 Speaker 13: the Sun coverage for our customers. We also in the 720 00:34:27,560 --> 00:34:30,520 Speaker 13: US have folks spread out across the country, which we've 721 00:34:30,520 --> 00:34:33,160 Speaker 13: found to be a very successful hiring strategy over the 722 00:34:33,200 --> 00:34:34,040 Speaker 13: last five years. 723 00:34:34,400 --> 00:34:35,320 Speaker 3: Christina and Kechiopo. 724 00:34:35,440 --> 00:34:37,040 Speaker 1: We will let you get back to that hiring strategy 725 00:34:37,080 --> 00:34:38,920 Speaker 1: and running the business. The CEO and co founder of 726 00:34:39,000 --> 00:34:45,520 Speaker 1: Vanter congratulations on the rays. 727 00:34:46,800 --> 00:34:47,200 Speaker 3: Tesla. 728 00:34:47,400 --> 00:34:49,480 Speaker 1: It is set to report earnings after the bell. The 729 00:34:49,560 --> 00:34:52,120 Speaker 1: quarter was a busy one, but the re engagement of 730 00:34:52,200 --> 00:34:54,520 Speaker 1: CEO Elon Musk the launch of the company's robot taxi 731 00:34:54,600 --> 00:34:57,640 Speaker 1: service in Austin the most Creatrudell is here to tell. 732 00:34:57,560 --> 00:34:59,840 Speaker 3: Us well, whether investors are going to care about the. 733 00:34:59,800 --> 00:35:02,480 Speaker 1: F fundamental business picture, which is an ugly one. We're 734 00:35:02,520 --> 00:35:05,359 Speaker 1: expecting revenues to fool the most severely in more than 735 00:35:05,400 --> 00:35:05,920 Speaker 1: a decade. 736 00:35:07,360 --> 00:35:09,560 Speaker 14: Yeah, and I think, you know, we only have to 737 00:35:09,560 --> 00:35:12,600 Speaker 14: go back a quarter for you know how Musk is 738 00:35:13,040 --> 00:35:16,840 Speaker 14: likely to approach you know tonight's call where you know, 739 00:35:16,880 --> 00:35:20,040 Speaker 14: he said something to the effect of kind of look, 740 00:35:20,239 --> 00:35:23,080 Speaker 14: don't don't look at what's going on now, cast your 741 00:35:23,120 --> 00:35:25,680 Speaker 14: gaze on you know, this bright shiny object on a hill. 742 00:35:26,160 --> 00:35:26,319 Speaker 13: Uh. 743 00:35:26,480 --> 00:35:28,399 Speaker 14: You know that that is likely what we're going to 744 00:35:28,560 --> 00:35:31,080 Speaker 14: have a sort of repeat of here, because this is 745 00:35:31,080 --> 00:35:34,560 Speaker 14: a company that it's it's fundamentals are in really rough shape. 746 00:35:34,960 --> 00:35:35,160 Speaker 9: Uh. 747 00:35:35,400 --> 00:35:37,920 Speaker 14: You know the car business. Uh, not only is it 748 00:35:38,040 --> 00:35:42,080 Speaker 14: is it not growing anymore, but it's actually shrinking pretty substantially. 749 00:35:42,600 --> 00:35:45,239 Speaker 14: And you know, they did indicate earlier this year that 750 00:35:45,600 --> 00:35:48,520 Speaker 14: the energy business, which has been a source of growth, 751 00:35:48,719 --> 00:35:50,880 Speaker 14: is going to get hit hardest by by tariff. So 752 00:35:51,360 --> 00:35:54,680 Speaker 14: you know, the the leaning into the robotaxi messaging, the 753 00:35:55,040 --> 00:35:58,160 Speaker 14: AI story is absolutely what we can expect to hear 754 00:35:58,160 --> 00:35:58,920 Speaker 14: from Musk tonight. 755 00:35:59,320 --> 00:36:01,880 Speaker 1: It's also not just tarifs that they're exposed to, but 756 00:36:01,960 --> 00:36:05,160 Speaker 1: are pulling away of support for ev measures. Does that 757 00:36:05,239 --> 00:36:07,480 Speaker 1: ultimately matter when you're thinking of a company that is 758 00:36:07,560 --> 00:36:10,440 Speaker 1: valued at one hundred and forty two times projective profit? 759 00:36:10,640 --> 00:36:14,520 Speaker 1: Do they care about what happens from a support perspective 760 00:36:14,560 --> 00:36:15,319 Speaker 1: for buying. 761 00:36:16,360 --> 00:36:18,120 Speaker 14: I think that's that's got to come up at some 762 00:36:18,239 --> 00:36:21,920 Speaker 14: point on tonight's call, right, is where are regulatory credit 763 00:36:21,960 --> 00:36:26,480 Speaker 14: revenues headed? Because there's a lot of concern particularly about 764 00:36:27,239 --> 00:36:29,919 Speaker 14: you know, the state of affairs in the US where 765 00:36:29,920 --> 00:36:32,359 Speaker 14: you have you know, as part of the Big Beautiful Bill, 766 00:36:32,440 --> 00:36:35,280 Speaker 14: you had the zeroing out of penalties for not meeting 767 00:36:36,080 --> 00:36:40,800 Speaker 14: fuel economy standards. So that sort of source of revenue 768 00:36:40,840 --> 00:36:44,760 Speaker 14: where other manufacturers who are having trouble meeting those numbers 769 00:36:45,320 --> 00:36:47,759 Speaker 14: they no longer need to go to Tesla for help. 770 00:36:48,560 --> 00:36:51,120 Speaker 14: You know, there's also the Trump administration going after the 771 00:36:51,239 --> 00:36:55,720 Speaker 14: California ZEV mandate, and you know also on the EPA 772 00:36:55,840 --> 00:36:59,760 Speaker 14: front tailpipe emission standards. So really sort of across the board, 773 00:37:00,080 --> 00:37:03,759 Speaker 14: there's less and less reason for Tesla's rivals to have 774 00:37:03,840 --> 00:37:06,279 Speaker 14: to turn to Musk and say, hey, we need some 775 00:37:06,320 --> 00:37:08,000 Speaker 14: help from a regulatory perspective. 776 00:37:08,280 --> 00:37:10,080 Speaker 4: And that's been a huge source. 777 00:37:09,800 --> 00:37:11,560 Speaker 14: Of revenue for this company over the years. 778 00:37:11,680 --> 00:37:15,080 Speaker 1: And how much does that matter for plowing money into 779 00:37:15,120 --> 00:37:17,920 Speaker 1: the future bets As Nick Kolos over at Data Trecks 780 00:37:17,920 --> 00:37:21,080 Speaker 1: puts it in our story, I think ninety five percent 781 00:37:21,120 --> 00:37:24,360 Speaker 1: of the valuation of Tesla is basically based on its futures, 782 00:37:24,560 --> 00:37:27,600 Speaker 1: which are optimists, which are ROBOTAXI. But is that at 783 00:37:27,680 --> 00:37:29,239 Speaker 1: risk if we don't have the cash cap. 784 00:37:30,640 --> 00:37:33,200 Speaker 14: Yeah, I mean we're talking when we talk about just 785 00:37:33,200 --> 00:37:35,719 Speaker 14: how much revenue you know, over the years, going back 786 00:37:35,760 --> 00:37:38,640 Speaker 14: to you know, since this has been a public company, 787 00:37:38,800 --> 00:37:42,160 Speaker 14: we're talking about over twelve billion dollars. That's a substantial 788 00:37:42,200 --> 00:37:44,680 Speaker 14: amount of money, and a lot of that has is 789 00:37:44,760 --> 00:37:47,319 Speaker 14: weighted towards just the last few years, where we've seen 790 00:37:47,719 --> 00:37:50,840 Speaker 14: you know, steadily Tesla report more and more of this revenue. 791 00:37:51,120 --> 00:37:53,200 Speaker 4: And so when you if then when you. 792 00:37:53,120 --> 00:37:57,080 Speaker 14: See that reverse and also this company is no longer 793 00:37:57,160 --> 00:38:01,839 Speaker 14: to generate cash from its its car business because that 794 00:38:01,960 --> 00:38:04,880 Speaker 14: is no longer growing, and yet it has all of 795 00:38:04,920 --> 00:38:08,520 Speaker 14: these you know, operations to tend to, you know, with 796 00:38:08,520 --> 00:38:12,400 Speaker 14: with plans that are underutilize. This starts to become a 797 00:38:12,440 --> 00:38:15,280 Speaker 14: real issue. And you do have to sort of question 798 00:38:15,840 --> 00:38:21,000 Speaker 14: if these robotaxi statements sort of don't pan out, what 799 00:38:21,000 --> 00:38:23,200 Speaker 14: what next? You know, what what can investors sort of 800 00:38:23,239 --> 00:38:26,160 Speaker 14: count on, you know, from from Tesla to sort of 801 00:38:26,760 --> 00:38:30,200 Speaker 14: steady things and get back to a state where you 802 00:38:30,239 --> 00:38:33,040 Speaker 14: can feel comfortable putting that sort of multiple on the stock. 803 00:38:33,239 --> 00:38:36,239 Speaker 1: Can they count on elon being focused on the business? Crowtidel, 804 00:38:36,560 --> 00:38:38,920 Speaker 1: We thank you so much for looking ahead to after 805 00:38:38,960 --> 00:38:42,040 Speaker 1: the bell, and look let's continue looking at because we've 806 00:38:42,040 --> 00:38:43,960 Speaker 1: got IBM coming up as well. 807 00:38:43,880 --> 00:38:45,960 Speaker 3: And it's flipping the script at the moment. 808 00:38:46,360 --> 00:38:49,520 Speaker 1: This is once some relic of another era and big 809 00:38:49,520 --> 00:38:50,840 Speaker 1: Blue is back. 810 00:38:51,000 --> 00:38:53,640 Speaker 3: As our Brodie Ford says, let's just. 811 00:38:53,600 --> 00:38:57,360 Speaker 1: Talk about how this company has steadily convinced investors that 812 00:38:57,480 --> 00:38:58,040 Speaker 1: it can grow. 813 00:38:59,480 --> 00:39:00,839 Speaker 6: You put it perfectly right. 814 00:39:00,920 --> 00:39:04,400 Speaker 15: I mean, IBM has been talking about re orienting around 815 00:39:04,440 --> 00:39:09,120 Speaker 15: software and services since the nineties. People didn't really believe 816 00:39:09,160 --> 00:39:11,239 Speaker 15: them until a year or two ago, and you can 817 00:39:11,239 --> 00:39:14,239 Speaker 15: see it in the stock price right that investors are 818 00:39:14,280 --> 00:39:16,880 Speaker 15: really trying to starting to buy into this idea of 819 00:39:16,920 --> 00:39:22,319 Speaker 15: an IBM based around largely infrastructure, software and consulting. The 820 00:39:22,360 --> 00:39:26,920 Speaker 15: real star right now is that software picture, led by 821 00:39:26,960 --> 00:39:30,120 Speaker 15: the acquisitions of red Hat and Hashi Corp. This year, 822 00:39:30,160 --> 00:39:33,239 Speaker 15: And if you look at large scale software companies, most 823 00:39:33,280 --> 00:39:36,480 Speaker 15: of them are struggling to really keep growing revenue steadily. 824 00:39:36,880 --> 00:39:40,280 Speaker 15: IBM is doing it, making a better profit picture stick 825 00:39:40,360 --> 00:39:43,759 Speaker 15: your business. Clearly Wall Street is happy about it. 826 00:39:44,040 --> 00:39:46,680 Speaker 1: They are sending the shares up thirty percent so far 827 00:39:46,760 --> 00:39:49,719 Speaker 1: this year, Brody. But the flying the ointment has been, 828 00:39:49,760 --> 00:39:54,480 Speaker 1: of course global narrative of trade issues and worry about 829 00:39:54,520 --> 00:39:57,560 Speaker 1: people really playing money into consultancy. How much do you 830 00:39:57,600 --> 00:40:00,160 Speaker 1: think the Genai piece of that is going to be 831 00:40:00,200 --> 00:40:02,840 Speaker 1: eroded because they've already done what six billion dollars in business, 832 00:40:02,840 --> 00:40:03,960 Speaker 1: but largely through consulting. 833 00:40:05,120 --> 00:40:06,200 Speaker 6: It's a really good point. 834 00:40:06,280 --> 00:40:09,520 Speaker 15: Yeah, Consulting is the other half of the IBM empire, 835 00:40:09,600 --> 00:40:13,200 Speaker 15: and that really has struggled because when the economy looks funky, 836 00:40:13,239 --> 00:40:15,800 Speaker 15: what do you do, you can see your consulting projects, 837 00:40:16,040 --> 00:40:18,319 Speaker 15: and so IBM has booked a lot of business and 838 00:40:18,360 --> 00:40:22,319 Speaker 15: consulting for Jenai products. You know, these big companies saying, hey, 839 00:40:22,400 --> 00:40:23,560 Speaker 15: which tools do we use? 840 00:40:23,600 --> 00:40:24,360 Speaker 6: We're confused. 841 00:40:25,040 --> 00:40:27,040 Speaker 15: What is kind of an issue is that this is 842 00:40:27,040 --> 00:40:30,480 Speaker 15: coming at the expense of traditional consulting, and so it 843 00:40:30,520 --> 00:40:33,560 Speaker 15: may not be a net increase. But what we've seen 844 00:40:33,600 --> 00:40:36,560 Speaker 15: so far is that as long as software keeps getting purchased, 845 00:40:36,640 --> 00:40:39,320 Speaker 15: investors are willing to overlook the choppy consulting. 846 00:40:39,960 --> 00:40:42,160 Speaker 1: Well for now, analysts none of them say buy nine 847 00:40:42,160 --> 00:40:45,320 Speaker 1: to hold, just for say, sell Bloomberg's Brodie Ford across 848 00:40:45,360 --> 00:40:48,560 Speaker 1: IBM or waiting for your reporting after the bill when 849 00:40:48,600 --> 00:40:50,960 Speaker 1: it breaks. But meanwhile, that does it for this edition 850 00:40:51,000 --> 00:40:53,600 Speaker 1: of Bloomberg Tech. Don't forget to check out our podcast. 851 00:40:53,640 --> 00:40:55,120 Speaker 1: You can find it on the terminal as well as 852 00:40:55,160 --> 00:40:56,200 Speaker 1: online on Apple. 853 00:40:55,960 --> 00:40:57,080 Speaker 3: Spotify, and iHeart. 854 00:40:57,239 --> 00:41:00,480 Speaker 1: And don't forget to tune into Ed Ludlow as he's 855 00:41:00,520 --> 00:41:02,600 Speaker 1: over in the White House, of course, listening in on 856 00:41:02,680 --> 00:41:05,919 Speaker 1: the AI summit and what that will bring in terms 857 00:41:06,080 --> 00:41:08,759 Speaker 1: of the look ahead from President Trump. We've also got 858 00:41:08,880 --> 00:41:11,120 Speaker 1: S and P five hundred and at session highs records 859 00:41:11,120 --> 00:41:13,440 Speaker 1: across the board that sack just lags a little bit, 860 00:41:13,440 --> 00:41:15,200 Speaker 1: though today it is Blue Bag Tech