WEBVTT - Broadcom Hits $1T Valuation, Bezos Looks For Trump Help 0:00:02.400 --> 0:00:08.960 Bloomberg Audio Studios, Podcasts, radio news from. 0:00:08.800 --> 0:00:13.800 The Heart where Innovation, money and power. Collie in Silicon Valley, Nbon. 0:00:14.160 --> 0:00:31.800 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow 0:00:31.800 --> 0:00:32.639 live from New York. 0:00:32.680 --> 0:00:35.640 I'm Tim Steneveeck in for Caroline Hyde. This is Bloomberg 0:00:35.680 --> 0:00:39.880 Technology coming up. Cloud nine. Broadcom up around twenty percent, 0:00:40.040 --> 0:00:42.240 soaring the most going all the way back to twenty 0:00:42.320 --> 0:00:45.840 twenty and topping one trillion dollars in valuation after posting 0:00:45.880 --> 0:00:49.360 it better than expected results. Plus Jeff Bezos looks to 0:00:49.479 --> 0:00:52.360 President Elect Trump to help with his space ambitions against 0:00:52.479 --> 0:00:56.760 yes Elon Musk and San Francisco's incoming mayor Daniel Lurie 0:00:56.880 --> 0:00:59.240 certainly wants to take advantage of the AI boom for 0:00:59.280 --> 0:01:01.720 the revival of the city, but for him it's more 0:01:01.880 --> 0:01:05.440 than just AI. More on that later this hour. First off, though, 0:01:05.520 --> 0:01:08.400 let's get a check on it Broadcom with Bloomberg's abigailty 0:01:08.400 --> 0:01:09.080 Do a little Hey I we. 0:01:09.080 --> 0:01:11.479 Go, Hey Tim, Yeah, this is a really impressive rally. 0:01:11.480 --> 0:01:14.000 Take a look at the shares of Broadcom, up about 0:01:14.080 --> 0:01:16.760 nineteen percent on the day right near session hives. This 0:01:16.800 --> 0:01:18.559 is a two day chart so that you can really 0:01:18.560 --> 0:01:21.679 see today's spike HIRER. That tells you that investors were 0:01:21.680 --> 0:01:24.920 surprised by the degree of the positivity. 0:01:24.240 --> 0:01:25.039 Coming out of the quarter. 0:01:25.080 --> 0:01:27.399 Now, the quarter they reported was sort of mixed, but 0:01:27.480 --> 0:01:31.039 what investors love it's all about AI. They are saying 0:01:31.680 --> 0:01:35.320 that they can grow AI, their AI part of the 0:01:35.360 --> 0:01:38.600 business in the first quarter by sixty five percent. They're 0:01:38.640 --> 0:01:41.080 also saying by twenty twenty seven, they see that the 0:01:41.120 --> 0:01:45.080 AI components market could be ninety billion dollars. So investors 0:01:45.080 --> 0:01:47.480 absolutely loving this. But this is not the only positive 0:01:47.560 --> 0:01:50.760 day for Broadcom this year. Let's put Broadcom in context 0:01:50.840 --> 0:01:53.920 of one of the most well known AI chip companies, 0:01:53.960 --> 0:01:55.640 and that of course is in Vidia, and then the 0:01:55.920 --> 0:01:59.800 SMP five hundred, excuse me, the socks that chips over 0:02:00.080 --> 0:02:02.880 all index just to see, and here's Broadcom's big spike 0:02:03.080 --> 0:02:05.840 record high today. I think tim based on my work 0:02:05.840 --> 0:02:07.600 in the Bloomberg, I think it may actually be the 0:02:07.640 --> 0:02:10.040 best day ever going back to two thousand and nine, 0:02:10.080 --> 0:02:12.200 and it is trading at a record high. There's NVIDI 0:02:12.280 --> 0:02:15.000 and there's the SMT five hundred. Not so shabby for 0:02:15.240 --> 0:02:18.440 Broadcom this year at all. Today a big piece of 0:02:18.440 --> 0:02:18.800 the rally. 0:02:18.919 --> 0:02:20.960 Yeah, you're right, most since going all the way back 0:02:21.000 --> 0:02:22.839 to two thousand and nine. Thanks so much, Av Gail 0:02:22.840 --> 0:02:25.119 do a little appreciate that. Let's get a deeper dive 0:02:25.120 --> 0:02:28.720 into Broadcom with Kun John Sabani of Bloomberg Intelligence. Kuonjohn, 0:02:28.960 --> 0:02:31.640 you joined us live on a Bloomberg BusinessWeek just yesterday. 0:02:31.639 --> 0:02:35.280 As Broadcom's numbers broke, shares bounced around up two percent 0:02:35.840 --> 0:02:38.640 even when negative. What happened on the earnings call that 0:02:38.720 --> 0:02:41.919 gave investors the conviction to send shares hired by twenty percent, 0:02:42.000 --> 0:02:44.520 giving Broadcom a market cap of a trillion dollars for 0:02:44.600 --> 0:02:45.320 the first time ever. 0:02:46.760 --> 0:02:49.520 Yeah, it was really that massive sixty to ninety billion 0:02:50.000 --> 0:02:52.880 sam by twenty twenty seven, just across three of its 0:02:52.960 --> 0:02:56.360 largest hyper sale customers. That's about three to four times 0:02:56.360 --> 0:02:58.760 fold growth in over the three years. So what it 0:02:58.800 --> 0:03:02.120 did is give investors there is a clear, quantifiable target 0:03:02.240 --> 0:03:04.840 to focus on over the next three years instead of 0:03:04.880 --> 0:03:07.560 constantly worrying about the near term. How's the next water 0:03:07.680 --> 0:03:09.320 going to look like? How's the next year going to 0:03:09.360 --> 0:03:09.680 look like? 0:03:10.360 --> 0:03:13.280 Kunjohn. Ai revenue grew two hundred and twenty percent during 0:03:13.320 --> 0:03:16.000 the year. It was fueled by demand for processors and 0:03:16.080 --> 0:03:20.080 networking components. Hottan said that on the call, demand for 0:03:20.160 --> 0:03:23.080 non AI chips, though we'll be down in the first quarter, 0:03:24.520 --> 0:03:28.239 our investors should investors just kind of right off non 0:03:28.280 --> 0:03:29.400 AI chips at this point. 0:03:30.520 --> 0:03:33.200 At this point they should, especially given the growth rates 0:03:33.240 --> 0:03:35.480 he is given for the AI business. I mean, look, 0:03:35.560 --> 0:03:37.680 the AI business is going to grow to be the 0:03:37.680 --> 0:03:40.320 majority of portion. I think the non AI business right 0:03:40.320 --> 0:03:43.200 now sort of twenty percent of that will continue even 0:03:43.280 --> 0:03:46.480 shrinking down. So if we didn't have those massive temps, yes, 0:03:46.520 --> 0:03:49.280 people would have looked at what's happened in wireless, what's 0:03:49.280 --> 0:03:52.320 happening with software, what's happening in one que slowing down? 0:03:52.360 --> 0:03:54.480 But at this point all of those worries are out 0:03:54.520 --> 0:03:54.920 the window. 0:03:55.360 --> 0:03:58.320 Kun John Sabani of Bloomberg Intelligence out there in San Francisco, 0:03:58.360 --> 0:04:00.760 thanks so much from more on broad in the company's 0:04:00.800 --> 0:04:03.000 nearly one hundred percent rallies so far this year. We're 0:04:03.080 --> 0:04:06.040 joined by Bloomberg's Ian King Ian. One of the ways 0:04:06.080 --> 0:04:08.760 that hog ten has been able to build Broadcom into 0:04:08.800 --> 0:04:10.840 one of the most valuable companies in the chip industry 0:04:10.920 --> 0:04:15.160 is through acquisitions. Does this trend continue? I mean, he 0:04:15.280 --> 0:04:16.200 was asked about that. 0:04:16.279 --> 0:04:18.320 He said he was asked, look, hey, Hawk, you've got 0:04:18.320 --> 0:04:20.599 a lot of cash. Does that mean you're getting ready 0:04:20.640 --> 0:04:22.440 to do another big one? And they said no, no, 0:04:22.440 --> 0:04:25.120 we're going to focus on bringing down our debt. But 0:04:25.200 --> 0:04:27.440 then later on in Nicoll he was asked, well, does 0:04:27.480 --> 0:04:31.200 this mean your your strategy of making acquisitions is the 0:04:31.200 --> 0:04:32.680 thing of the past, that you're going to focus on 0:04:32.839 --> 0:04:34.680 organic growth in AI And he was like, oh no, 0:04:34.839 --> 0:04:37.520 we're still looking so kind of beast message there. 0:04:37.680 --> 0:04:40.000 Okay, So what kind of companies have they acquired in 0:04:40.000 --> 0:04:42.760 the past and what kind of companies could potentially be 0:04:42.880 --> 0:04:43.559 on their radar? 0:04:44.400 --> 0:04:47.640 Yeah, I mean they've they've gone through the whole Panoplio 0:04:47.720 --> 0:04:51.039 that they started off in semiconduct has he acquires what 0:04:51.080 --> 0:04:55.400 he calls franchises. These are really sort of long standing, 0:04:55.480 --> 0:04:58.040 important parts of the industry that he believes are kind 0:04:58.040 --> 0:05:00.920 of undervalued, and then he kind of strips out, makes 0:05:00.960 --> 0:05:03.640 them sort of lean and mean again, and that's been 0:05:03.640 --> 0:05:06.920 a really successful policy. And then he took that strategy 0:05:07.120 --> 0:05:09.920 and spun it into software and most recently he went 0:05:10.000 --> 0:05:12.960 for VMware. And what he's going to do next, who knows. 0:05:13.000 --> 0:05:17.200 He said he's open to software and semiconductor. Obviously, all 0:05:17.240 --> 0:05:20.040 eyes are on Intel right now and whether this is 0:05:20.080 --> 0:05:22.440 something which might figure into his calculations. 0:05:22.560 --> 0:05:25.040 Okay, well that's a perfect segue. Let's go to Intel 0:05:25.440 --> 0:05:28.080 right now, because CFO Dave Disner said that a formal 0:05:28.080 --> 0:05:31.680 separation of the company's factory and product development divisions is 0:05:31.680 --> 0:05:35.320 an open question. It'll be decided by the next leader 0:05:35.920 --> 0:05:40.440 of the company. Ian I thought that this had been 0:05:40.520 --> 0:05:42.479 kind of put to bed and Intel was going to 0:05:42.520 --> 0:05:46.120 stay the type of company that it's been for over 0:05:46.120 --> 0:05:48.680 the last couple of years. What's the latest time in it. 0:05:49.680 --> 0:05:52.520 Yeah, No, it had been put to bed by Pat Gelsinger. 0:05:52.600 --> 0:05:55.760 Unfortunately for him, he's not in that job anymore. Right, 0:05:55.800 --> 0:05:58.479 he's not in a position to say he said, stronger together, 0:05:58.560 --> 0:06:03.800 better together. One of the co CEO replacements, Michelle Johnson 0:06:03.880 --> 0:06:06.880 hold House, who was on stage as well, said yeah, no, yeah, 0:06:06.880 --> 0:06:10.320 we think we're matched together. But both her and Dave's instner, 0:06:10.400 --> 0:06:13.560 the CFO and COCO said yeah, but you know, it's 0:06:13.600 --> 0:06:16.480 not our call. We'll see what happens, And that, really, 0:06:16.520 --> 0:06:19.680 I guess in Wall Street's minds kind of opened the 0:06:19.720 --> 0:06:23.039 door to this being a much more firm possibility. 0:06:23.120 --> 0:06:25.440 Okay, So what part of the company could be spun off? 0:06:25.520 --> 0:06:28.120 Where could that company go? Would it be a public company, 0:06:28.400 --> 0:06:31.240 would Broadcom be interested in part of the company? What 0:06:31.279 --> 0:06:32.800 do you see? Yeah? 0:06:32.839 --> 0:06:36.120 I mean, the focus was on what happens to the 0:06:36.120 --> 0:06:39.039 product side of the company and the manufacturing side of 0:06:39.040 --> 0:06:44.400 the company, that perhaps these two entities become something separate. Frankly, 0:06:44.440 --> 0:06:47.360 the manufacturing side right now is piling on the losses. 0:06:47.960 --> 0:06:50.400 It's really not in a financial position that would make 0:06:50.720 --> 0:06:53.919 an IPO even a vague possibility right now and probably 0:06:53.960 --> 0:06:56.599 not for you know, a matter of years while it 0:06:56.640 --> 0:06:59.479 tries to build up its presence with outside customers. That's 0:06:59.520 --> 0:07:02.480 not really an option. That would have to be new ownership, 0:07:02.560 --> 0:07:05.680 new ownership with very deep pockets. Whether that's Broadcom or 0:07:05.680 --> 0:07:08.880 anybody else, we don't know. The product side is arguably 0:07:08.920 --> 0:07:11.560 a bit more healthy, particularly in PCs. It might be 0:07:11.600 --> 0:07:14.840 something that somebody like Qualcom or Broadcom might. 0:07:14.760 --> 0:07:18.720 See a useful Okay, well, certainly, busy days ahead for 0:07:18.840 --> 0:07:20.640 Ian King and for all of us. Ian King certainly 0:07:20.640 --> 0:07:23.400 appreciate you joining us. Thanks so much. Let's continue the 0:07:23.440 --> 0:07:26.960 conversation with epac Oscar Deshkai, a senior analyst over at 0:07:26.960 --> 0:07:30.200 Swiss Code. It's a banking group specializing in providing online 0:07:30.200 --> 0:07:34.120 financial and trading services. EPEC record highs for Broadcom, our 0:07:34.160 --> 0:07:37.640 Bel Technology, and this week for meta platforms, Apple, Alphabet, Tesla, 0:07:38.000 --> 0:07:40.840 the names continue. What inning are we in in your 0:07:40.920 --> 0:07:43.400 view when it comes to this megacap tech bull. 0:07:43.280 --> 0:07:48.120 Run, Well, absolutely well, good news keep coming in and 0:07:48.320 --> 0:07:52.080 they actually fund this rally and extend. Really they do 0:07:52.360 --> 0:07:55.880 justify the extension of the rally for Broadcom, for example, Well, 0:07:55.960 --> 0:08:00.440 they actually announce a revenue growth for the AI business 0:08:00.520 --> 0:08:03.320 of two hundred and twenty percent. They are looking for 0:08:03.440 --> 0:08:06.040 sixty five percent growth in their revenue in the first quartum. 0:08:06.080 --> 0:08:08.320 Those are the big, big numbers that we are used 0:08:08.360 --> 0:08:12.360 to that we like, especially in the AI and technology stock. 0:08:12.480 --> 0:08:16.320 So that's actually giving a boost to the companies and 0:08:16.360 --> 0:08:17.280 to Com today. 0:08:17.320 --> 0:08:18.960 Well, we are also. 0:08:18.760 --> 0:08:23.720 Very much impressed by cooms projection of a boom in 0:08:23.960 --> 0:08:28.800 their AI business, especially the custom AI chips in the 0:08:28.840 --> 0:08:32.200 next few years. That actually fits exactly right in the 0:08:32.240 --> 0:08:36.840 middle of this narrative that's unfolding right now that the 0:08:36.920 --> 0:08:41.040 big technology companies are actually building their own chips, so 0:08:41.400 --> 0:08:43.840 that means that they are going to be users and 0:08:43.880 --> 0:08:46.320 they're going to be winners. So we expect to see 0:08:46.440 --> 0:08:51.360 still a little change of the scenery when twenty twenty 0:08:51.400 --> 0:08:52.120 five begins. 0:08:52.200 --> 0:08:54.040 Okay, you mentioned there will be winners and there will 0:08:54.080 --> 0:08:56.200 be losers. Let's start with the losers. Who are they 0:08:56.200 --> 0:08:56.560 going to be? 0:08:58.000 --> 0:09:01.080 I mean, I don't want to say losers. Nvidia is 0:09:01.120 --> 0:09:04.679 not smiling today, and they are right because we are 0:09:04.800 --> 0:09:08.520 now in this narrative of big technology companies, which actually 0:09:08.520 --> 0:09:12.240 made up to fifty percent of its revenue last quarter, 0:09:12.440 --> 0:09:15.560 trying to build their own chips. So we're talking about 0:09:15.640 --> 0:09:18.920 Amazon with their Trainium chips. Google came out with his 0:09:19.040 --> 0:09:21.920 own I mean, everybody is up now building their own 0:09:21.960 --> 0:09:26.559 chips in order to well cost efficient for cost efficiency reason. 0:09:26.679 --> 0:09:30.800 So this means that Nvidia will have to replace these 0:09:30.840 --> 0:09:34.360 big technology companies by other customers. Now, we know that 0:09:34.440 --> 0:09:37.480 Jensen one didn't look worried at all up until now, 0:09:37.520 --> 0:09:38.640 but that's still a fly. 0:09:39.280 --> 0:09:42.319 So are you saying that that folks who have ridden 0:09:42.360 --> 0:09:46.160 this high for Nvidia should be thinking about getting out 0:09:46.200 --> 0:09:46.880 at some point soon. 0:09:48.320 --> 0:09:51.000 Well, I want to say that right now, because these 0:09:51.000 --> 0:09:54.800 worries of big technology companies that will start slowing their 0:09:54.880 --> 0:09:58.320 spending has not materialized just yet, because earlier this week 0:09:58.520 --> 0:10:03.040 we had TSM sales numbers for November and they actually 0:10:03.080 --> 0:10:06.520 announced a thirty four percent growth in their sales in November, 0:10:06.600 --> 0:10:10.760 which actually continues to back this narrative of robust AI 0:10:10.880 --> 0:10:13.920 demand for Nvidia's chips. But it is a certainty that 0:10:13.960 --> 0:10:17.520 this high concentration of big technology companies in their client 0:10:17.559 --> 0:10:19.480 book is something to be watched. 0:10:19.559 --> 0:10:21.760 Okay, we know you've mentioned in video and not a 0:10:21.800 --> 0:10:25.120 company that should be smiling today Broadcom certainly one that is, 0:10:25.360 --> 0:10:27.800 what are the other names that you're bullish on going 0:10:27.800 --> 0:10:28.800 into twenty twenty five. 0:10:29.640 --> 0:10:32.520 Well, AMD is not smiling today, But we actually like 0:10:32.640 --> 0:10:36.160 AMD for one particular reason, and is the fact that 0:10:36.280 --> 0:10:41.640 AMD proposes cost efficient and more affordable but as efficient 0:10:41.960 --> 0:10:45.480 as efficient, very efficient chips and that could actually be 0:10:45.520 --> 0:10:49.319 interesting for those sectors and companies who do not necessarily 0:10:49.360 --> 0:10:52.079 want the most premium chips out there, but who want 0:10:52.240 --> 0:10:54.959 good chips sale for you know, doing their day to 0:10:55.040 --> 0:10:58.560 day task with AI. And that's going to be very interesting. 0:10:58.600 --> 0:11:00.680 We think that there is an opportune to window for 0:11:00.800 --> 0:11:05.480 AMD to get into this race more seriously and well, 0:11:05.800 --> 0:11:09.360 question the the NVIDIAs or eat a part of mvda's 0:11:09.440 --> 0:11:10.760 cake in the coming years. 0:11:10.840 --> 0:11:13.080 A lot of the exuberance around AI has certainly focused 0:11:13.080 --> 0:11:15.439 on the chip companies, but what if we move beyond 0:11:15.440 --> 0:11:17.960 those chip companies. Who else do you see as winners 0:11:18.120 --> 0:11:19.440 when it comes to this boom and AI. 0:11:20.720 --> 0:11:23.800 Well, actually we see, for example, well we see all 0:11:23.800 --> 0:11:26.120 the clients as winners because they are going to get 0:11:26.200 --> 0:11:31.120 an important part of their important efficiency and cost efficiencies 0:11:31.160 --> 0:11:33.360 in this process. So this is obviously one thing, and 0:11:33.360 --> 0:11:36.040 this is why this whole thing is happening. But we're 0:11:36.040 --> 0:11:39.080 also looking very closely to what's happening in the energy sector, 0:11:39.120 --> 0:11:42.480 and we think that the nuclear power providers are going 0:11:42.520 --> 0:11:44.880 to be in a good position to benefit from the 0:11:45.160 --> 0:11:47.680 ar really, given that it is clear right now that 0:11:47.760 --> 0:11:50.760 the alternative energy sources like wind and solar are not 0:11:50.800 --> 0:11:56.079 going to offer the enough scalability actually for satisfying all 0:11:56.080 --> 0:11:58.440 these exponentially arising energy demands. 0:11:58.679 --> 0:12:02.440 Nuclear power so little intensive to develop, especially here in 0:12:02.440 --> 0:12:05.479 the United States, We've only had a couple new generators 0:12:05.480 --> 0:12:08.440 come online over the last couple of decades. Who do 0:12:08.480 --> 0:12:11.199 you think can pull this off in the next few 0:12:11.280 --> 0:12:13.560 years or are we talking like a generational shift here. 0:12:14.520 --> 0:12:17.600 Well, yes, you're right. It has been controversial as well, 0:12:17.679 --> 0:12:19.480 so it's here in Europe as well. We have been 0:12:19.600 --> 0:12:22.560 closing the nuclear plans and not to the contrary. But 0:12:22.960 --> 0:12:26.160 this year we have started seeing the mentality change a 0:12:26.160 --> 0:12:30.240 little bit, especially when big technology companies started announcing that 0:12:30.320 --> 0:12:33.360 they are going to be interested in using nuclear power 0:12:33.760 --> 0:12:38.280 instead of while using fossil fuel or fossil well, actually, 0:12:38.440 --> 0:12:40.680 excell as, it was saying that they are going to 0:12:40.720 --> 0:12:45.600 offer gas for gas powered plans to big technology companies 0:12:45.679 --> 0:12:49.840 that's going to be built in half time, like in 0:12:49.960 --> 0:12:53.040 five years, and they're going to offer these companies and 0:12:53.160 --> 0:12:57.600 after good energy source. But at the end of the day, 0:12:57.640 --> 0:13:01.800 when we are talking about tackling climate change and offering 0:13:01.920 --> 0:13:06.240 an alternative and clean energy source, well, today nuclear looks 0:13:06.320 --> 0:13:10.440 like the only plausable option that could satisfy our increasing 0:13:10.600 --> 0:13:12.400 and exponentially increasing needs. 0:13:12.800 --> 0:13:16.080 May pec Oscar Deshkaia, senior analyst at Swiss Quote joining 0:13:16.200 --> 0:13:18.400 us from Geneva, thanks for standing up late for us. 0:13:18.440 --> 0:13:29.800 Do appreciate that Jeff Bezos is expected to meet with 0:13:29.920 --> 0:13:33.200 President elect Tromp to discuss Amazon's Project Kuiper. It's a 0:13:33.280 --> 0:13:37.000 satellite Internet service that is facing delays and cost overruns. 0:13:37.320 --> 0:13:39.800 Bezos look into the new administration for help in the 0:13:39.920 --> 0:13:44.439 space race against fellow cent a billionaire Elon Musk. Bloomberg's 0:13:44.480 --> 0:13:49.200 Bruce Einhorn joins US now Bruce. Project Kuiper supposed to 0:13:49.200 --> 0:13:53.319 be this competitor to SpaceX's Starlink. Is it fair at 0:13:53.320 --> 0:13:55.800 this point to even call it a competitor. 0:13:56.120 --> 0:13:58.880 Well, it aspires to be, but at the moment it's 0:13:58.920 --> 0:14:02.840 not there yet. So Starlink has more than six thousand 0:14:02.920 --> 0:14:07.160 satellites operating, providing high speed Internet service around the world. 0:14:07.679 --> 0:14:11.760 Amazon wants Project hyper to do something similar. The original 0:14:11.760 --> 0:14:15.359 goal was to have the first batch of operational satellites 0:14:15.440 --> 0:14:18.520 launch first half of this year, and by this time 0:14:18.600 --> 0:14:23.040 they would have beta service starting. They've encountered delays though 0:14:23.200 --> 0:14:26.960 in launching the satellites. They're now looking to launch the 0:14:27.000 --> 0:14:30.520 first batch of satellites early next year and then have 0:14:30.640 --> 0:14:34.280 service starting later in the year. The big problem for 0:14:34.360 --> 0:14:37.760 them is, well, one big problem is that they do 0:14:37.840 --> 0:14:42.200 have a deadline that they received from the Federal Communications 0:14:42.200 --> 0:14:44.160 Commission when they first got the license for this back 0:14:44.160 --> 0:14:46.680 in twenty twenty. They need to have half of their satellites. 0:14:46.680 --> 0:14:49.760 It's over sixteen hundred satellites up and operating by the 0:14:49.800 --> 0:14:52.480 middle of July, I mean by middle of twenty twenty six, 0:14:52.600 --> 0:14:55.400 July twenty twenty six. They don't get that, then they're 0:14:55.400 --> 0:14:58.000 going to need the FCC to give them an extension, 0:14:58.040 --> 0:14:58.800 to give them a waiver. 0:14:59.120 --> 0:15:03.600 One challenge is get those satellites into orbit. Blue Origin 0:15:03.680 --> 0:15:06.360 is certainly a possibility, but if they can't pull it off, 0:15:07.000 --> 0:15:09.400 can they rely on SpaceX to do this? Would that 0:15:09.440 --> 0:15:10.000 ever happen? 0:15:11.000 --> 0:15:14.440 While they do have a contract with SpaceX to launch 0:15:14.560 --> 0:15:18.360 on I think three SpaceX rockets, but that's just a 0:15:18.440 --> 0:15:22.240 tiny part of their total launch needs. So for the 0:15:22.240 --> 0:15:27.800 most part, Amazon is looking to new rockets from Blue Origin, 0:15:27.840 --> 0:15:31.200 which is Jeff Bezos founded company, as well as europe 0:15:31.440 --> 0:15:35.520 Arian Spots and United Launch Alliance, which is joint venture 0:15:35.600 --> 0:15:40.040 between Boeing and Lockheed Martin. The challenge though, is that 0:15:40.280 --> 0:15:43.920 those three companies all have new rockets. Among the three 0:15:43.960 --> 0:15:47.360 of them, those rockets have launched a total of three times, 0:15:47.880 --> 0:15:49.600 so they don't really have a huge track record, and 0:15:49.640 --> 0:15:52.240 it takes a while to get rockets up and going 0:15:53.080 --> 0:15:58.520 to a frequent, frequent launch schedule. So it's a big 0:15:58.600 --> 0:16:01.280 challenge that they face. On the other Cant of course, 0:16:01.320 --> 0:16:02.880 has its own rockets. They don't have to worry about 0:16:02.920 --> 0:16:05.040 it exactly. And it seems like, speaking of SpaceX, Elon 0:16:05.160 --> 0:16:08.560 Musk and President elect Trump are extremely tight. After what 0:16:08.600 --> 0:16:09.960 happened over the last few months and the more than 0:16:10.000 --> 0:16:13.440 two hundred million dollars Musk spent to help get Trump elected. 0:16:14.360 --> 0:16:19.480 How bad is that for Jeff Bezos. Well, of course, 0:16:21.080 --> 0:16:25.360 Musk and the President elect are very close. President Trump 0:16:25.440 --> 0:16:28.000 during his first term did have some run ins with 0:16:28.320 --> 0:16:32.000 Jeff Bezos. There was some criticism from the president of 0:16:32.080 --> 0:16:36.080 Jeff Bezos, who of course owns the Washington Post. Amazon 0:16:36.920 --> 0:16:39.880 did go to court in the first Trump administration alleging 0:16:40.280 --> 0:16:44.720 unfair treatment of the company, saying that they had been 0:16:44.760 --> 0:16:47.760 cut out of a contract with the Defense Department. So 0:16:47.840 --> 0:16:52.840 there is history there. More recently, we have seen pretty 0:16:52.920 --> 0:16:56.480 upby comments from Jeff Bezos about the President elect and 0:16:56.520 --> 0:16:57.440 the new administration. 0:16:58.360 --> 0:17:00.680 Bruse ein Horn, thanks so much for joining us. Do 0:17:00.760 --> 0:17:03.960 appreciate that today. Well, speaking of another story that we 0:17:04.000 --> 0:17:07.200 are watching, Elon Musk looking to transform his SpaceX Star 0:17:07.320 --> 0:17:10.520 based site into a new city. The site in Boca Chica, 0:17:10.600 --> 0:17:15.000 Texas currently the primary location for building and launching SpaceX's 0:17:15.000 --> 0:17:18.800 Starship Rockets, and it's created over three thousand jobs. Several 0:17:18.880 --> 0:17:22.239 steps need to occur before Starbase can be created as 0:17:22.280 --> 0:17:27.119 a new city, including permission from local authorities. Coming up, 0:17:27.240 --> 0:17:29.840 we'll discuss the intersection of AI and sports with the 0:17:29.880 --> 0:17:37.800 CEO of VM. That's next. This is Bloomberg. A new 0:17:37.800 --> 0:17:40.440 partnership could change the way millions of fans experience live 0:17:40.520 --> 0:17:43.639 sports around the world. New York Islanders and Ubs Arena 0:17:43.680 --> 0:17:46.359 have teamed up with VM to develop quick Q. It's 0:17:46.400 --> 0:17:49.000 a tool that directs fans to the shortest lines so 0:17:49.040 --> 0:17:51.720 then can get back to their seats as soon as possible. 0:17:52.080 --> 0:17:54.840 The company putting AI into action and other industries too, 0:17:54.880 --> 0:17:58.720 including marine manufacturing, robotics, as well as food and beverage. 0:17:58.800 --> 0:18:01.080 Here with us is Elliott Horow, a CEO and founder 0:18:01.119 --> 0:18:03.040 at VM. Elliott, good to see you. I want to 0:18:03.040 --> 0:18:04.960 get to the Ubs are in a partnership in a minute. 0:18:05.000 --> 0:18:07.800 But you co founded Mango dB. Before that, you co 0:18:07.880 --> 0:18:11.040 founded shop Wiki. This is not your first rodeo. What's 0:18:11.080 --> 0:18:13.920 the problem that you identified that VM would solve? 0:18:14.160 --> 0:18:16.719 Well, thanks for having us, Tim So the problem that 0:18:16.760 --> 0:18:18.879 I was focused on after I thus Mango dB, it 0:18:18.920 --> 0:18:20.120 was all about physical. 0:18:19.800 --> 0:18:21.200 Devices in the real world. Right. 0:18:21.200 --> 0:18:23.120 We all live in the real world. We all want 0:18:23.160 --> 0:18:25.359 to have the real world be better for us in 0:18:25.440 --> 0:18:28.400 whatever way, and so we built VM to be an 0:18:28.400 --> 0:18:30.640 engineering platform for physical devices. 0:18:30.720 --> 0:18:30.840 Right. 0:18:30.840 --> 0:18:33.679 And that's from air conditioners in your house to robots 0:18:33.720 --> 0:18:34.560 on a factory floor. 0:18:34.880 --> 0:18:35.000 Right. 0:18:35.000 --> 0:18:37.560 It's all about making it easier to build these products. 0:18:37.600 --> 0:18:37.679 Right. 0:18:37.760 --> 0:18:39.840 You need a lot of different engineering counts to make 0:18:39.840 --> 0:18:44.320 that happen, from software engineers to mechanical engineers to AI engineers. 0:18:44.680 --> 0:18:46.520 So how do you make a platform that makes it 0:18:46.640 --> 0:18:48.680 ten times easier to bring these products to life? 0:18:48.720 --> 0:18:51.480 Okay, so let's get to this UBS partnership. The idea 0:18:51.520 --> 0:18:53.639 is you're watching an Islanders game, You've got to use 0:18:53.680 --> 0:18:57.080 the restroom. You can tell by opening the Islanders app 0:18:57.400 --> 0:19:00.199 where to go and how long it'll take exactly right. 0:19:00.240 --> 0:19:02.480 The Islanders, the Islanders ownership and you know John the 0:19:02.520 --> 0:19:05.520 Decky who we partnered with, are all about fan experience, Right. 0:19:05.560 --> 0:19:07.080 How do you have the experience of going to an 0:19:07.080 --> 0:19:09.840 Islanders game, going to any event at UBS arena be 0:19:09.880 --> 0:19:12.720 as great as possible? And so the biggest problem with 0:19:12.880 --> 0:19:14.760 one of the biggest problems with going to a game 0:19:14.880 --> 0:19:16.399 is when do I go to the bathroom? How do 0:19:16.440 --> 0:19:18.239 I have to wait in line? And so you can 0:19:18.280 --> 0:19:21.120 open up the Islanders app and see immediately which bathrooms 0:19:21.160 --> 0:19:23.080 have the shortest line, if there's a line right now, 0:19:23.280 --> 0:19:24.679 and so you can know when to go, where to 0:19:24.720 --> 0:19:27.000 go and make that part of the experience much better. 0:19:27.000 --> 0:19:28.800 What's the hardware that has to be installed at ubs 0:19:28.800 --> 0:19:30.200 arena in order to make this happen. 0:19:30.840 --> 0:19:32.280 So one of the great things we were able to 0:19:32.320 --> 0:19:34.920 do was actually add almost no hardware. Right, We're able 0:19:34.920 --> 0:19:37.800 to add this to the existing security cameras that they 0:19:37.840 --> 0:19:40.280 already had in place, you know, just monitoring for security 0:19:40.320 --> 0:19:43.000 and safety around the arena, and so to tap into 0:19:43.040 --> 0:19:46.000 the existing cameras and just look at those cameras and 0:19:46.040 --> 0:19:48.080 determine what the line was for the bathrooms. 0:19:48.119 --> 0:19:49.359 So what's the tech layer there? 0:19:49.920 --> 0:19:52.919 So the entire tech layer is the existing security cameras 0:19:52.960 --> 0:19:55.200 and then just VM outside of that, Right, So VM 0:19:55.240 --> 0:19:58.240 is tapping into those existing cameras, looking at those feeds 0:19:58.280 --> 0:20:01.760 in real time, doing AI actually in the arena itself, 0:20:02.080 --> 0:20:04.320 and then pushing that data to the Islanders up. 0:20:04.640 --> 0:20:08.320 Okay, let's talk fundraising here. You've raised just shy of 0:20:08.400 --> 0:20:12.440 ninety million dollars at this point. How long does that 0:20:12.720 --> 0:20:15.800 runway give you? When do you need to raise more money? 0:20:16.160 --> 0:20:18.320 We're always talking to investors about raising more money. 0:20:18.520 --> 0:20:18.720 You know. 0:20:18.760 --> 0:20:22.200 One of the things about VM is we're not a 0:20:22.440 --> 0:20:25.000 lacking ambition company, right. We're thinking about everything from in 0:20:25.040 --> 0:20:27.960 your house again to arenas, lots of things we want 0:20:27.960 --> 0:20:30.399 to do about fan experience and lots of arenas, but 0:20:30.440 --> 0:20:33.440 then also everything to cleaning oceans, and so we will 0:20:33.440 --> 0:20:35.800 be raising more money and we're doing a lot of 0:20:35.840 --> 0:20:37.160 interesting projects all over the place. 0:20:37.160 --> 0:20:38.959 Are you actively raising money at this point? Like, are 0:20:39.000 --> 0:20:41.119