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Speaker 1: From Marhard.

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Speaker 2: We're Innovation Money and power co Line in Silicon Valley, NBN.

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Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed.

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Speaker 4: Loved Love.

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Speaker 5: Live from New York and San Francisco. This is Bloomberg

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Speaker 5: Technology coming up. Apple fail hauls on weakness around China,

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Speaker 5: while Amazon it soars as cost cutting efforts payoff.

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Speaker 6: We'll dig deep on.

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Speaker 7: Tech earnings and Intel's third quarter robots spark optimism about

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Speaker 7: its turnaround efforts, our conversation with Intel CEO Pat Gelsinger, and.

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Speaker 6: The election it draws near.

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Speaker 5: We sit down with former Republican candidate Vivek Ramaswami. But

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Speaker 5: first we check in on these markets, which today and

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Speaker 5: on a higher note, but we are down for the week.

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Speaker 5: And then as that one hundred, we're off by one

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Speaker 5: point two percent, a significant sell off yesterday, the biggest

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Speaker 5: that we've seen since September the sixth, all on concerns

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Speaker 5: about big tech and its ability to show up in

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Speaker 5: terms of airnings. Today, Amazon managers to power us high.

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Speaker 5: I want to dig in on the micro which I

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Speaker 5: know is what you've got ed.

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Speaker 7: Yeah, hopefully I'm going to be looking at the two

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Speaker 7: big names, which are first Amazon and then Apple. The

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Speaker 7: Amazon story is pretty clear. There's growth in the cloud

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Speaker 7: unit AWS, it's tied to AI. They gave us an

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Speaker 7: outlook for the final three months of the year. Whether

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Speaker 7: you take revenue or operating income, it gives us a

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Speaker 7: strong signal and we're going to get into that in

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Speaker 7: just a moment. Apple grew in every geography around the

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Speaker 7: world apart from Greater China. iPhone revenue b but the

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Speaker 7: signal is they're going to grow in the low single

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Speaker 7: digits in the final three months of this year. What

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Speaker 7: does that mean? Did iPhone grow in China? There's probably

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Speaker 7: more questions still with Apple on than answers at this point.

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Speaker 5: Let's get some answers then, Because gene months is with

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Speaker 5: us managing partner Deepwater Asset Management, really threw the tea

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Speaker 5: leaves for us because there has been ongoing concern when

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Speaker 5: it comes to Apple and China.

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Speaker 6: Is that the key takeaway.

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Speaker 2: For you, Well, the key takeaway from me is someone

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Speaker 2: who's optimistic that these Apple Intelligence features are going to

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Speaker 2: accelerate revenue growth and I have much more ambitious expectations

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Speaker 2: for the next year and two years. One of the

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Speaker 2: big takeaways for me is the guidance kind of through

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Speaker 2: cold water on this twenty percent kind of outside hope

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Speaker 2: that we'd start to see some better acceleration in the

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Speaker 2: December quarter. As you mentioned, a low single digit guide.

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Speaker 2: The street was at seven percent, so probably analysts are

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Speaker 2: going to shake out somewhere between five to six percent

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Speaker 2: similar growth rates if we just saw on the September quarter.

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Speaker 2: And so from my perspective, the big takeaway here is

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Speaker 2: that the street was right that this is going to

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Speaker 2: take some time a few quarters before we start to

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Speaker 2: see this acceleration and growth. And I think the guidance

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Speaker 2: just confirmed that. And then just to dive into the

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Speaker 2: China question, I previewed this and said they've got to

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Speaker 2: they have to have China growth.

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Speaker 4: In the quarter.

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Speaker 2: I think it was actually like up like zero point

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Speaker 2: five percent. I mean it was fractional. Cops were really easy.

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Speaker 2: They should have been up five six percent where the

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Speaker 2: street was at. So I think there's something else going

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Speaker 2: on in China.

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Speaker 8: Geane.

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Speaker 7: It's a fair question of where that future growth will

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Speaker 7: come from, right, And that's great because we can talk

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Speaker 7: about technology. You've been using Apple Intelligence in its early form,

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Speaker 7: and when you think about China, there was some evidence,

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Speaker 7: albeit third party data evidence, that the consumer in China

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Speaker 7: might be buying iPhone sixteen in the hope that in

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Speaker 7: the future the platform would be available there, because of

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Speaker 7: course it's not now the regulator won't allow it.

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Speaker 8: How are you kind of modeling.

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Speaker 2: That well, the timing of when some so first, I've

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Speaker 2: been using the features, and I would describe the features

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Speaker 2: as nice to have but not need to have yet.

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Speaker 2: I mean, they do a great job of like consolidating

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Speaker 2: my messages and notifications. I think that the as far

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Speaker 2: as kind of the you know, how this plays out

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Speaker 2: is the geograph piece is really important. It's just going

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Speaker 2: to be additional English countries for the rest of this year,

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Speaker 2: and so that's going to be like UK, Canada, Australia.

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Speaker 2: But then we still have this unanswered question about when

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Speaker 2: does Europe start going and then China, of course it's

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Speaker 2: probably they're going to have to do some sort of

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Speaker 2: partnership with Baidu to get there. And so for this

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Speaker 2: cycle to really be a super cycle, there's like almost

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Speaker 2: like these geopolitical things that need to fall into place,

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Speaker 2: and ultimately I believe that they will fall into place.

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Speaker 2: I think Apple's got clout to make those things happen.

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Speaker 2: And then additionally, even though I described the features as

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Speaker 2: nice to have, not need to have, I just want

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Speaker 2: to quickly frame in why I believe these will be

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Speaker 2: need to have. Is that starting kind of first quarter

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Speaker 2: of next year, once they start integrating more of the

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Speaker 2: GPT functionality but also open up more of this with developers,

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Speaker 2: we get a genta AI.

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Speaker 6: There is optimism there.

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Speaker 5: Therefore, eventually that Apple intelligence will bear fruits. What is

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Speaker 5: bearing fruits right here, right now is the services side.

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Speaker 5: But that's under duress from a regulatory perspective. If we're

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Speaker 5: thinking about the app Store, for example, how do you

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Speaker 5: think about regulation gene.

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Speaker 2: It's the black swan potential negative event.

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Speaker 4: Here is it?

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Speaker 2: Services growth at twelve percent, the shoes at thirteen called

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Speaker 2: a wash. But I think that this came up on

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Speaker 2: the Apple call last night. It came up on the

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Speaker 2: Google call two nights ago. I think Services continues to

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Speaker 2: do well because their base keeps growing, hitting record highs.

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Speaker 2: But I think that you know, there's still this piece

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Speaker 2: out there, and I would put a low probability ten

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Speaker 2: to fifteen percent that something happens between the relationship between

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Speaker 2: Google and app on that that the search placement deal

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Speaker 2: with Safari, and that's probably ten to fifteen percent of

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Speaker 2: their income. So I think that there's a that's something else.

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Speaker 2: I'm focused on.

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Speaker 7: What's in a Pinchai said on the Google call aways,

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Speaker 7: all the regulatory oversight will have unintended consequences, right that

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Speaker 7: Apple didn't go as far a few months or a

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Speaker 7: deepwater acid management s greates catch up and have you

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Speaker 7: on the show. Thank you so much. Okay, let's talk

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Speaker 7: about the other big one. Amazon in its earnings. Remi Shalott,

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Speaker 7: portfolio manager at vontabell is across all of these names,

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Speaker 7: and I think with Amazon AWS growth and the outlook,

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Speaker 7: what was your read on that?

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Speaker 8: Well, I think ed you.

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Speaker 9: Know, the revenue trends across the board were in line

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Speaker 9: with very healthy levels of Q one, so AWS growing

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Speaker 9: at nineteen percent, in line with expectations.

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Speaker 10: I think they're getting incremental growth from.

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Speaker 9: AI related services that they're offering, probably we estimate around

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Speaker 9: six hundred basis points.

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Speaker 10: And you know, there was commentary that there was very

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Speaker 10: strong demand.

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Speaker 9: For their customs silicon, which I think was an interesting

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Speaker 9: takeaway from the core.

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Speaker 5: Set that in the context, because you are such a

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Speaker 5: great guest to have because your portfolios don't just own Amazon,

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Speaker 5: but also the competitors in the hyperscale space. What does

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Speaker 5: Amazon's market share look like right now? What does it

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Speaker 5: mean in terms of having its own supply sustainability? Is

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Speaker 5: it less dependent on an in video for example.

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Speaker 9: Yeah, it's a really interesting topical question right now, just

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Speaker 9: it has implications for in video. So Amazon's annualizing revenue

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Speaker 9: for AWS around one hundred and ten billion right.

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Speaker 10: Now, and we'd say Azure for Microsoft.

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Speaker 9: The number two players are about sixty five sixty seven billion,

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Speaker 9: so still a good way ahead, but Azure is growing

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Speaker 9: faster at about thirty three percent versus AWS at nineteen.

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Speaker 10: The way I think about it, though, is.

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Speaker 9: That they're broke, They're both structurally growing at a very

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Speaker 9: attractive rate, and it's really two players moving ahead.

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Speaker 10: And Google a distant third.

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Speaker 9: So I think the market share is fine. They're doing

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Speaker 9: all the right things. And in regards to the question

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Speaker 9: about custom silicon, what they did say on the call

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Speaker 9: was that the demand for their custom silicon Inferentia and

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Speaker 9: Trainium was very strong and that they would be asking

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Speaker 9: their suppliers to increase a manufacturing capacity. So that's that's

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Speaker 9: important because customers do want to have lower cost options.

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Speaker 9: Not everyone wants larger language models that use in video

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Speaker 9: chips and AWS is in a very good position to

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Speaker 9: to cater to that demand and potentially lower cost for consumers,

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Speaker 9: for their for their customers.

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Speaker 7: It's not new that in the context of Amazon, we

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Speaker 7: focus on the cloud business, but there's much more. I mean,

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Speaker 7: what did you make of the e commerce business, particularly

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Speaker 7: in areas where Andy Jasse has made cuts and scaled

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Speaker 7: back spending a little bit.

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Speaker 9: Well, e commerce was extremely impressive on the margin side.

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Speaker 9: If you recall back into Q they put out a

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Speaker 9: guidance that was below expectations on margins, and the reason

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Speaker 9: for that is, you know, consumers are demanding more daily

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Speaker 9: essentials and you're seeing lower basket sizes, which means, you know,

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Speaker 9: higher cost to serve.

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Speaker 10: So that entails that that means lower margins for the

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Speaker 10: Corey e commerce business.

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Speaker 9: But what they've been able to do to upset that

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Speaker 9: pressure is consolidate more packages into the one delivery and

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Speaker 9: also leverage the strategy with the regional distribution centers, which has.

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Speaker 10: Been something in play for the last couple of.

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Speaker 9: Years, which means that they're closer to their consumer, which

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Speaker 9: lowers their cost to serve, but also that they can

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Speaker 9: increase the number of one day next day delivery items.

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Speaker 9: So it's both good on a customer satisfaction level as

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Speaker 9: well as improving operating efficiency. So margins beat on the

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Speaker 9: core e commerce side, and I think we now have

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Speaker 9: good visibility for margins to continue to expand at a good,

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Speaker 9: healthy level for the next year or so despite investing

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Speaker 9: in that business.

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Speaker 5: I mean, let's take it back to the real investment outlay,

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Speaker 5: a capex of seventy five billion dollars being articulated for

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Speaker 5: twenty twenty four, and where that then pushes forward to

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Speaker 5: a mean is how much they have to continue to

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Speaker 5: double down on investment for infrastructure for AI.

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Speaker 9: Well, the seventy five billions of big step up from

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Speaker 9: the fifty odd billion that they report in capex last year,

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Speaker 9: so there's already a large step up relating to AWS,

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Speaker 9: Amazon data center and server related investment.

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Speaker 10: So will they need to step up incrementally from here?

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Speaker 9: I think it's going to be a lot more moderate

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Speaker 9: going into twenty twenty five versus twenty twenty four, but

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Speaker 9: clearly there is a lot of demand for AI related

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Speaker 9: services and General Cloud. You've got to remember that General

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Speaker 9: Cloud is recovering as well, and the commentary keeps indicating

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Speaker 9: that there's more demand than the supply that they can offer.

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Speaker 10: So I think they can continue to invest in capex

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Speaker 10: in this area.

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Speaker 9: But the important thing for investors is that AWS was

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Speaker 9: still able to produce a thirty eight percent operating margin

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Speaker 9: despite the investment we've seen to date. Now that margin

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Speaker 9: will probably come down, but I think what we can

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Speaker 9: take away is that the margins are probably going to

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Speaker 9: be higher than what people are expecting before this result up.

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Speaker 5: It's great to have some time with you, fund of

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Speaker 5: bel portfolio manager.

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Speaker 6: Thank you, Ed. We've also got other earnings to care

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Speaker 6: to check out.

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Speaker 7: Yeah, and Intel's the other big story. So Intel shares

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Speaker 7: are up almost seven percent. That's their biggest jump or

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Speaker 7: on track to be their biggest jump since the last

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Speaker 7: day of August. The story painful cuts in the court

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Speaker 7: are gone, impairment charges a big miss on the bottom line,

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Speaker 7: but an outlook that gives markets hope that Intel is

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Speaker 7: finally turning a corner. And later in the show, we're

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Speaker 7: going to go over some of our interview with the

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Speaker 7: CEO Pat Gelsinger, So stay tuned with us. Immediately, we're

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Speaker 7: going to talk about cryptoregulation and what could come on

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Speaker 7: the horizon regardless of the winner in next week's US

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Speaker 7: presidential election, and that discussions with Kristin Smith, the CEO

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Speaker 7: of the Blockchain Association.

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Speaker 8: That's next. This is Bloomberg Technology.

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Speaker 7: New election date from the FEC finds Vice President Kamala

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Speaker 7: Harris's re embrace of the tech industry is paying off.

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Speaker 7: She's received major donations from Mark Cuban, Dusk and Moskowitz

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Speaker 7: and Reed Hoffman, who told us this yesterday.

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Speaker 11: Listen, what the tech industry needs is kind of a

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Speaker 11: stable environment in order to, you know, kind of follow

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Speaker 11: the rules and prosper in good global relations. In addition

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Speaker 11: to stability and an ability to kind of know that

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Speaker 11: you're following a rule of law versus what I think

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Speaker 11: of as grifter capitalism.

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Speaker 8: All of that.

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Speaker 11: Leads to, like, you know, the reason why I and

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Speaker 11: others like me support Vice.

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Speaker 8: President Harris Blimberg's business.

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Speaker 7: Carson has been writing about this this week, but for months,

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Speaker 7: frankly tracking the relationship between Silicon Valley and the candidates,

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Speaker 7: and I think your reality is in Vice President Harris's case, California,

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Speaker 7: Silicon Valley, the Bay Area is about funding, getting cash

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Speaker 7: and support. But there are big names behind her in

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Speaker 7: the world technology.

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Speaker 12: Yes, she's had to re engage the tech industry in

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Speaker 12: a way that I think was unexpected for her campaign

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Speaker 12: to bring in these donations. She's been able to get

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Speaker 12: money from Ried Hoffman, Dustin Moskovitz, these names you just named,

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Speaker 12: but she's had to work for it from these tech leaders.

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Speaker 12: California is a big ATM for both candidates, and so

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Speaker 12: she's had multiple fundraisers here and she's really pulled upon

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Speaker 12: the tech industry to prop up her campaign.

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Speaker 6: It's not even just fundraises.

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Speaker 5: Your story articulates that she's holding nearly weekly roundtables with

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Speaker 5: business leaders and tech investors in builders.

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Speaker 6: That's a cadence that is extraordinary.

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Speaker 12: Yeah, she has been hitting the pave in her and

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Speaker 12: her campaign team. I mean, Brian Nelson and Tony West

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Speaker 12: are kind of the two big envoys from her campaign,

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Speaker 12: two tech leaders, and they're having roundtables, for example at

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Speaker 12: y Combinator, where they're saying startups will have a seat

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Speaker 12: at the table. And these roundtables are really meant to

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Speaker 12: let the tech industry know that her campaign will be less.

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Speaker 12: There has been a big Biden trust gap so far,

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Speaker 12: and a lot of the people in the tech industry

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Speaker 12: feel like, you know, they were neglected by the Biden administration.

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Speaker 12: So these roundtables are away for her to show that,

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Speaker 12: you know, they're having trust within the tech industry.

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Speaker 7: It's very quickly later in the program, we have Vivit

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Speaker 7: Ramaswami on the show to talk about Trump and tech

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Speaker 7: has also supported Trump, so a bench capitalists.

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Speaker 12: Yes, there's been a major Trump tide, and I think

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Speaker 12: that's in relation to the actions of the Biden administration

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Speaker 12: where a lot of people feel like it's been particularly

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Speaker 12: destructive to the tech industry so far. And so there

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Speaker 12: are a lot of big names, Mark and Ries and

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Speaker 12: Ben Horowitz, David Sachs who have supported Trump that we

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Speaker 12: have seen this Trump tide. Now, these roundtables, though, I think,

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Speaker 12: have done a good job and kind of stemming that

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Speaker 12: Trump tide.

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Speaker 7: Being both viscasts and important reporting just a few days out.

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Speaker 8: Carry let's get back to the markets and let's.

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Speaker 5: Filter that into the conversation we're just having, because in

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Speaker 5: many ways people have felt part of the Trump trade

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Speaker 5: has been his crypto adoption and indeed support, wanting to

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Speaker 5: make the US the key area of growth for cryptocurrencies,

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Speaker 5: and in many ways Bitcoin has been moved about. When

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Speaker 5: we look at basically how the market is predicting a

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Speaker 5: Trump win or not, we're currently up about four point

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Speaker 5: eight percent when you're looking at bitcoin, that's over the

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Speaker 5: course of five trading days.

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Speaker 3: At one point, we're.

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Speaker 5: About two hundred dollars off the record high that we

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Speaker 5: set back in March. Many wondering whether the roll eclipse

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Speaker 5: that's seventy three thousand dollars level again where at seventy

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Speaker 5: nine hundred and thirty seven. Move on and see that

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Speaker 5: it's not just Bitcoin that's been moved around by political volatility,

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Speaker 5: so too has those look at this over the course

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Speaker 5: of a month, dose coin is up fifty four percent.

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Speaker 5: Now there is an acromen that has been adopted by

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Speaker 5: perhaps if we did see the Department of Government efficiency

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Speaker 5: borne out by one Elon Musk, what does doge spend spell? Well,

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Speaker 5: of course it stes so many feeling that that's getting

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Speaker 5: a tailwind from the effect of Elon Musk's back for Trump.

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Speaker 5: But ed we're going to delve into the world of

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Speaker 5: crypto a little bit more now.

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Speaker 8: Yes, very creative.

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Speaker 7: This election cycle, major money is being funneled to candidates

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Speaker 7: who support crypto and the results could have a major

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Speaker 7: impact on regulation and oversight of the industry.

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Speaker 8: Here to discuss.

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Speaker 7: Kristen Smith, CEO of the Blockchain Association, I have to

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Speaker 7: be honest with you, Kristen. I think we've made multiple

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Speaker 7: attempts to ask surrogates of both candidates for a clear

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Speaker 7: definition or explanation of their policy towards crypto.

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Speaker 8: Are you able to do that?

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Speaker 3: Yeah? Well, listen, I think you know.

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Speaker 13: Biz said something interesting in the last interview that people

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Speaker 13: have been very frustrated with the Biden administrations of focus

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Speaker 13: on tech and crypto is very much a part of that.

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Speaker 13: It's one of the reasons why we partnered with Harris

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Speaker 13: X to launch Regulation by Enforcement dot com. We need

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Speaker 13: to stop the regulation by enforcement and get a new

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Speaker 13: law into place. With Donald Trump, he has had a

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Speaker 13: remarkable change of heart on crypto from where he was

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Speaker 13: when he was president last time. He's had an incredibly

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Speaker 13: clear list of priorities. He's very interested in including people

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Speaker 13: with understanding of crypto in his administration. We know that

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Speaker 13: he's going to fire Gary Gunsler on day one, So

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Speaker 13: we have to jump in.

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Speaker 8: There because what you just said is interesting.

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Speaker 7: You are working with the Harris campaign, but you're your

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Speaker 7: complimentary of what president form President Trump is, how he's

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Speaker 7: approaching this. We had Gary Againster on the show last

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Speaker 7: week and Caroline asked him very simply about his retention

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Speaker 7: of his job. What's your position on leadership at the SEC?

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Speaker 13: In that respect, Gary Gensler's got to go, There's no

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Speaker 13: question about that. And I think the good news is

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Speaker 13: with a change in administration, whether it be Trump who

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Speaker 13: wins or Harris who wins, there is an opportunity to

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Speaker 13: make that change. I think we know it's pretty clear

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Speaker 13: where Trump stands Harris. I think we're hopeful. I mean, listen,

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Speaker 13: she's had the shortest presidential campaign in history, but she

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Speaker 13: is talking with the tech community, is business just saying

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Speaker 13: she is open minded. She said some positive things about crypto,

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Speaker 13: so she's not as precise in her policies, but she

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Speaker 13: I think, you know, we're optimistic that if she wins

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Speaker 13: that there will be an opportunity for change at the

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Speaker 13: top as well.

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Speaker 5: Can you articulate the precision of the policies coming from

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Speaker 5: the Trump campaign, because for me, it just sounds like

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Speaker 5: we want to make it more adopted here in the US.

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Speaker 5: We want to be like the number one place in

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Speaker 5: the planet to have crypto. But I didn't get much

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Speaker 5: nuance on exactly how that do they do that from

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Speaker 5: a guardrail perspective, from a congress bringing in rules perspective.

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Speaker 13: Yeah, well, President Trump gave a great speech at Nashville

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Speaker 13: where he laid.

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Speaker 3: Out a couple of items.

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Speaker 13: But it goes back to though, the biggest thing in

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Speaker 13: the crypto industry right now it needs right now is

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Speaker 13: to stop the regulation by enforcement.

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Speaker 3: We have a Congress.

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Speaker 13: Coming in that we think is very prime to pass

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Speaker 13: an appropriate regulatory framework.

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Speaker 3: They did a lot of work.

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Speaker 13: This Congress, but we're going to need next Congress to

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Speaker 13: get that work done. And as part of our campaign

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Speaker 13: for regulation by enforcement, we if Harris X found that

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Speaker 13: two thirds of voters agree that Congress should act first

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Speaker 13: before the sec.

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Speaker 3: Should take action.

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Speaker 13: And so I think it shows that for candidates who

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Speaker 13: are running for Congress, for the House and the Senate,

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Speaker 13: whether they be Republican or Democrat, that it is helpful

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Speaker 13: to their campaigns to take a pro crypto posture, and

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Speaker 13: that's one of the reasons why we think that with

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Speaker 13: a change of administration that we're very hopeful that we

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Speaker 13: could get new leadership at the regulatory agencies and some

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Speaker 13: of the executive branch agencies that will help work with

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Speaker 13: Congress to make that a reality.

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Speaker 5: A number of the brands that we currently see in

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Speaker 5: front of US or companies have been making layoffs of late,

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Speaker 5: and many have been trying to make clear that yes,

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Speaker 5: bitcoin's been on a bit of a teb, but the

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Speaker 5: ecosystem in general perhaps hasn't been thriving. More broadly, how

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Speaker 5: do you see that continue to evolve?

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Speaker 13: Yeah, well, the industry has been struggling here in the

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Speaker 13: United States. You know, I think there are companies and

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Speaker 13: leaders that are fighting to try to keep it here

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Speaker 13: and getting the right framework that allows us to keep

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Speaker 13: it here.

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Speaker 3: But it's very, very risky.

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Speaker 13: To create a new blockchain, to launch a token, to

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Speaker 13: do that kind of activity in the US. And so

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Speaker 13: what happens is these companies take their laptops, go overseas

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Speaker 13: and work out of there instead of working here in

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Speaker 13: the US. And so this is one of the things

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Speaker 13: that can't be measured. This is you know, there's some

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Speaker 13: factors like we have over one hundred enforcement actions, there's

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Speaker 13: been over four hundred million dollars.

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Speaker 3: In legal fees spent.

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Speaker 13: But what can't be known is the number of jobs

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Speaker 13: and the opportunity for the US.

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Speaker 7: Kristen very quickly, we have a few days until this happens.

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Speaker 7: You calculated or gain planned for the scenario you think

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Speaker 7: most likely.

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Speaker 13: You know, it's interesting, I'm watching all of the same

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Speaker 13: signals that everybody else's. I think the early voting. I'd

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Speaker 13: love to look at the prediction markets. I look at

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Speaker 13: poly market, I think about every half hour to see

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Speaker 13: where the numbers are at. It does certainly seem to

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Speaker 13: think that that Trump is in the lead, But I've

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Speaker 13: been around long enough to know it's very hard. You

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Speaker 13: really have to get through the day. But I do think,

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Speaker 13: regardless of what happens, we've turned a corner. I think

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Speaker 13: we're going to have an incredibly productive Congress, and I

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Speaker 13: think we're going to have a new administration that's going

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Speaker 13: to be more open of working with a crypto industry.

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Speaker 5: An optimistic Kristin Smith, we thank you, CEO of Blockchain Association.

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Speaker 5: Time now for talking tech. First up, Waimo, Alphabet's autonomous

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Speaker 5: driving unit. It's valued at more than forty five billion dollars,

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Speaker 5: including its latest round of financing, according to sources. Now,

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Speaker 5: the business said late last week that it had raised

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Speaker 5: five point six billion dollars in new capital at an

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Speaker 5: undisclosed value. Meanwhile, Microsoft has hired one of the engineering

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Speaker 5: chiefs who kept Facebook's infrastructure humming. This is as the

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Speaker 5: tech giant is actually struggling to bring data centers online

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Speaker 5: fast enough to meet the demand.

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Speaker 6: For its AI products.

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Speaker 5: Now, Ja Parik will join the senior leadership team at

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Speaker 5: Microsoft and report to CEO Sati and Adella. And AirPods

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Speaker 5: maker Gortech has picked banks to work on the planned

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Speaker 5: Hong Kong IPO of its semiconductor unit, Gortech Microelectronics so all,

444
00:21:55,520 --> 00:21:57,760
Speaker 5: according to sources, who say the listing could happen as

445
00:21:57,800 --> 00:22:00,399
Speaker 5: soon as next year, raise at least three hundred million

446
00:22:00,520 --> 00:22:01,560
Speaker 5: dollars then.

447
00:22:02,240 --> 00:22:03,600
Speaker 8: All right, coming up on the program.

448
00:22:03,640 --> 00:22:08,480
Speaker 7: Our conversation with Intel CEO Pat Gelsinger following the company's earnings.

449
00:22:08,119 --> 00:22:10,000
Speaker 8: The star is pushing a bit higher.

450
00:22:10,280 --> 00:22:12,760
Speaker 7: There's a bit of optimism and returning to that old

451
00:22:12,840 --> 00:22:21,879
Speaker 7: name of Silicon Valley and Semiconductors.

452
00:22:22,720 --> 00:22:25,080
Speaker 5: Welcome back to Blue Meg Technology. I'm Caroline Hide in

453
00:22:25,080 --> 00:22:26,160
Speaker 5: New York and.

454
00:22:26,080 --> 00:22:29,320
Speaker 7: I met Lovelo in San Francisco. What a week reflected

455
00:22:29,320 --> 00:22:31,280
Speaker 7: in the markets. Look at the NAS that one hundred

456
00:22:31,560 --> 00:22:34,439
Speaker 7: over a five day basis, it's like a one percent

457
00:22:34,520 --> 00:22:37,359
Speaker 7: decline basically over the course of the week, which technically

458
00:22:37,760 --> 00:22:39,959
Speaker 7: is the biggest drop since the first week of September.

459
00:22:40,119 --> 00:22:41,760
Speaker 8: So earnings is a big part of.

460
00:22:41,680 --> 00:22:44,800
Speaker 7: That movement right to both the upside and downside, but

461
00:22:44,880 --> 00:22:47,320
Speaker 7: fold into economic data and the fact that we're all

462
00:22:47,359 --> 00:22:49,800
Speaker 7: bracing for an election here in America next week.

463
00:22:49,920 --> 00:22:50,720
Speaker 8: There's a lot going on.

464
00:22:50,760 --> 00:22:52,680
Speaker 7: The three names that we're looking at and continue to

465
00:22:52,720 --> 00:22:56,159
Speaker 7: look at are the big ones. Earnings Last night was

466
00:22:56,320 --> 00:22:58,920
Speaker 7: wild in terms of three names that report at the

467
00:22:58,960 --> 00:23:02,439
Speaker 7: same time. So starting with Amazon really pushing higher, biggest

468
00:23:02,480 --> 00:23:06,560
Speaker 7: jump since February of this year, strength growth in aws

469
00:23:06,600 --> 00:23:08,680
Speaker 7: in particular, but overall going to final three months of

470
00:23:08,720 --> 00:23:11,240
Speaker 7: the year, Apple down grew everywhere around the world apart

471
00:23:11,280 --> 00:23:14,040
Speaker 7: from China, low single digits growth to end the year.

472
00:23:14,200 --> 00:23:18,040
Speaker 7: And then Intel is really pushing higher. Really really difficult

473
00:23:18,280 --> 00:23:20,840
Speaker 7: quarter gone, some hope in the outlook for the quarters

474
00:23:20,920 --> 00:23:22,960
Speaker 7: to come, but they are still behind in that key

475
00:23:23,000 --> 00:23:26,400
Speaker 7: market of AI accelerators, and it's interesting that investors look

476
00:23:26,400 --> 00:23:27,359
Speaker 7: past that carrow.

477
00:23:27,520 --> 00:23:30,399
Speaker 5: And it's really interesting how investors are navigating any of

478
00:23:30,400 --> 00:23:31,040
Speaker 5: this at the moment.

479
00:23:31,119 --> 00:23:32,880
Speaker 6: And we want to bring in Isabelli, who's.

480
00:23:32,640 --> 00:23:34,280
Speaker 5: Got a great recap on the week, but also a

481
00:23:34,280 --> 00:23:36,240
Speaker 5: push ahead to how perhaps people are taking risk off

482
00:23:36,280 --> 00:23:40,480
Speaker 5: the table. Ultimately, five of them, magnificent seven came this

483
00:23:40,560 --> 00:23:43,200
Speaker 5: week and it did dictate trade in many ways.

484
00:23:43,320 --> 00:23:46,199
Speaker 14: Yes, it was the biggest, biggest and busiest season and

485
00:23:46,280 --> 00:23:48,280
Speaker 14: five of them reported and as a cohart, they didn't

486
00:23:48,320 --> 00:23:51,600
Speaker 14: really inspire, which is kind of interesting, but we expect

487
00:23:51,640 --> 00:23:54,560
Speaker 14: that not everything that will go up, we'll keep on

488
00:23:54,640 --> 00:23:57,359
Speaker 14: going up. And as a whole, Wall Street estimates the

489
00:23:57,440 --> 00:23:59,879
Speaker 14: reports that beat were only seventy five percent.

490
00:24:00,119 --> 00:24:02,440
Speaker 6: That sounds high, but it's the lowest sense the.

491
00:24:02,400 --> 00:24:04,879
Speaker 14: Start of twenty twenty three, so you can see some

492
00:24:04,960 --> 00:24:06,639
Speaker 14: kind of fizzling there. But on top of that, we

493
00:24:06,680 --> 00:24:09,720
Speaker 14: had a slew of eco data, manufacturing data strand we

494
00:24:09,800 --> 00:24:12,480
Speaker 14: had hiring rose but at the slowest pace ince twenty

495
00:24:12,480 --> 00:24:14,800
Speaker 14: twenty two. And we also have next week which is

496
00:24:14,840 --> 00:24:18,040
Speaker 14: elections and FOMC all that is resorting into this big

497
00:24:18,080 --> 00:24:20,960
Speaker 14: ball of angst. So we have cities Gate Global Risk

498
00:24:21,000 --> 00:24:23,320
Speaker 14: Factors and it throws to its highest in eighteen months.

499
00:24:23,359 --> 00:24:27,760
Speaker 14: So it just really shows investors are jittery and that

500
00:24:27,800 --> 00:24:31,080
Speaker 14: result into voltile trading across asset classes. So that gauge

501
00:24:31,119 --> 00:24:36,359
Speaker 14: includes emergency markets, gold, SMP, NAZAC, everything, and it's very

502
00:24:36,440 --> 00:24:38,120
Speaker 14: votile as well.

503
00:24:38,240 --> 00:24:40,399
Speaker 7: Typically we like to keep it light and breezy on

504
00:24:40,440 --> 00:24:43,800
Speaker 7: a Friday on this program Bloomberg Technology. But the point

505
00:24:43,800 --> 00:24:48,680
Speaker 7: of your column, anxiety is bubbling is partly, as I said,

506
00:24:48,720 --> 00:24:51,560
Speaker 7: bracing for an election next week, and if you're an investor,

507
00:24:51,600 --> 00:24:53,480
Speaker 7: you have to think about the impact of that on

508
00:24:53,560 --> 00:24:56,639
Speaker 7: all sorts of asset classes. And in the context of tech,

509
00:24:57,280 --> 00:24:59,040
Speaker 7: what is that specific anxiety?

510
00:25:00,000 --> 00:25:03,119
Speaker 14: Anxiety with tech is how far will this AI riley go?

511
00:25:03,240 --> 00:25:05,440
Speaker 14: But we have news today also showing that the capex

512
00:25:05,480 --> 00:25:08,880
Speaker 14: of the four largest Internet companies, which includes Amazon, Microsoft,

513
00:25:08,880 --> 00:25:11,480
Speaker 14: Mata and Alphabet, are set to total well over two

514
00:25:11,560 --> 00:25:14,560
Speaker 14: hundred billion this year. So that's a record sum. So

515
00:25:14,560 --> 00:25:17,639
Speaker 14: you see investors still investing in AI, still hinging on

516
00:25:17,680 --> 00:25:20,800
Speaker 14: the promise of AI. But beyond tech, there is the elections,

517
00:25:20,920 --> 00:25:23,960
Speaker 14: but there is also the FOMC and weeks after that,

518
00:25:24,160 --> 00:25:25,160
Speaker 14: we still have a slew.

519
00:25:25,040 --> 00:25:25,640
Speaker 3: Up eco data.

520
00:25:25,720 --> 00:25:28,400
Speaker 14: Yes, it's going to the year end, but where are

521
00:25:28,400 --> 00:25:30,760
Speaker 14: we here. I talked to a source earlier. He said,

522
00:25:30,760 --> 00:25:33,240
Speaker 14: we already landed. It's a soft landing, but some investors

523
00:25:33,400 --> 00:25:36,480
Speaker 14: are still bracing for that hard landing. So the dichotomy

524
00:25:36,680 --> 00:25:41,120
Speaker 14: is couldn't be so stark. It's really a messy, noisy market.

525
00:25:41,240 --> 00:25:43,120
Speaker 14: But I also want to bring your attention to next week.

526
00:25:43,160 --> 00:25:46,320
Speaker 14: We have poundy or super micro lift revian arms, so

527
00:25:46,840 --> 00:25:49,040
Speaker 14: it's really not going to end. So if this week

528
00:25:49,080 --> 00:25:50,800
Speaker 14: is what a week, next year might even be a

529
00:25:50,840 --> 00:25:54,359
Speaker 14: bigger what a week is.

530
00:25:54,440 --> 00:25:56,600
Speaker 8: Early, keeping it light and be easy on a Friday.

531
00:25:56,640 --> 00:25:57,560
Speaker 8: Thank you very much.

532
00:25:58,119 --> 00:25:59,600
Speaker 7: Carry We have so much more to come on this

533
00:25:59,720 --> 00:26:00,960
Speaker 7: edition Bloombog Technology.

534
00:26:01,200 --> 00:26:04,040
Speaker 5: Yeah, and as we do, indeed look towards those elections.

535
00:26:04,080 --> 00:26:07,160
Speaker 5: Next week, Vivek Ramaswami is joining US former Republican presidential

536
00:26:07,160 --> 00:26:09,639
Speaker 5: candidate himself and now of course surrogate for the Trump campaign.

537
00:26:10,200 --> 00:26:13,680
Speaker 5: We're going to talk the policies, technology, cryptos, so much more.

538
00:26:13,880 --> 00:26:15,600
Speaker 6: This is Bloomberg Technology.

539
00:26:26,240 --> 00:26:29,479
Speaker 7: The US election is upon us and the gap between

540
00:26:29,560 --> 00:26:32,679
Speaker 7: Republican nominee Donald Trump and Vice President Kamala Harris on

541
00:26:32,760 --> 00:26:36,880
Speaker 7: prediction markets at least is narrowing that Trump has held

542
00:26:36,880 --> 00:26:40,040
Speaker 7: a lead. We've been speaking to voices in technology and

543
00:26:40,119 --> 00:26:44,040
Speaker 7: in venture capital on both sides of this race. Today

544
00:26:44,480 --> 00:26:47,479
Speaker 7: we're joined by Vivek Ramaswami, a supporter of Donald Trump,

545
00:26:47,680 --> 00:26:51,600
Speaker 7: a former Republican presidential candidate himself, someone that's been active

546
00:26:52,080 --> 00:26:54,040
Speaker 7: not just on social media but on the ground. And

547
00:26:54,640 --> 00:26:58,280
Speaker 7: welcome to the program, mister Ramaswami. A simple question to start,

548
00:26:58,840 --> 00:27:02,720
Speaker 7: why is former President Trump the best candidate for the

549
00:27:02,800 --> 00:27:07,000
Speaker 7: technology industry and the bench capital industry that supports it.

550
00:27:08,160 --> 00:27:10,040
Speaker 15: Here, Look, I'll give you a simple answer to a

551
00:27:10,040 --> 00:27:12,119
Speaker 15: straight question you asked, which is that he is the

552
00:27:12,119 --> 00:27:16,600
Speaker 15: president in favor of mass deregulation and mass reform of

553
00:27:16,640 --> 00:27:20,000
Speaker 15: the administrative state. I think the administrative state and the

554
00:27:20,040 --> 00:27:24,000
Speaker 15: regulatory state is the single greatest impediment to innovation, to

555
00:27:24,080 --> 00:27:26,880
Speaker 15: new business formation, to business growth in this country.

556
00:27:27,200 --> 00:27:27,960
Speaker 4: The actions of.

557
00:27:28,160 --> 00:27:30,920
Speaker 15: Three letter agencies who are never elected, by the way,

558
00:27:31,200 --> 00:27:34,000
Speaker 15: from the EPA to the FTC, to the SEC to

559
00:27:34,040 --> 00:27:36,920
Speaker 15: the FDA, you go straight down the list, those three

560
00:27:37,000 --> 00:27:39,800
Speaker 15: letter agencies are making most rules that govern businesses in

561
00:27:39,800 --> 00:27:42,960
Speaker 15: this country today. Those rules were never passed by Congress

562
00:27:42,960 --> 00:27:46,720
Speaker 15: by democratically elected representatives. The current Supreme Court, which Donald

563
00:27:46,720 --> 00:27:49,119
Speaker 15: Trump actually gave us much of the composition of that court,

564
00:27:49,440 --> 00:27:53,200
Speaker 15: has declared many of those regulations unconstitutional. And Donald Trump

565
00:27:53,280 --> 00:27:55,199
Speaker 15: has made clear that he wants to go in and

566
00:27:55,280 --> 00:27:58,800
Speaker 15: not just incrementally tinker around the edges of that bureaucracy,

567
00:27:59,200 --> 00:28:01,720
Speaker 15: but really to share it down to its small core

568
00:28:01,760 --> 00:28:03,720
Speaker 15: that it should have been in the first place. And

569
00:28:03,720 --> 00:28:05,080
Speaker 15: so I think that's the case I would make to

570
00:28:05,119 --> 00:28:08,399
Speaker 15: technology investors, to entrepreneurs that Donald Trump is going to

571
00:28:08,400 --> 00:28:10,919
Speaker 15: be the president who stands for taming in that regulatory

572
00:28:10,960 --> 00:28:13,359
Speaker 15: state which currently acts as a wet blanket on the

573
00:28:13,400 --> 00:28:15,080
Speaker 15: economy and innovation in particular.

574
00:28:15,320 --> 00:28:17,879
Speaker 7: Vivet could I ask, as an extension of that, is

575
00:28:17,920 --> 00:28:21,680
Speaker 7: there a specific area, be it crypto, be electric vehicles,

576
00:28:21,720 --> 00:28:25,199
Speaker 7: be it space that you feel former President Trump is

577
00:28:25,280 --> 00:28:28,920
Speaker 7: most focused in the list of priorities.

578
00:28:29,200 --> 00:28:31,399
Speaker 15: Well, I think that he's more focused on an overall

579
00:28:31,440 --> 00:28:33,879
Speaker 15: American revival. All of those fit on the list. I

580
00:28:33,880 --> 00:28:35,560
Speaker 15: think energy is big on the list.

581
00:28:35,359 --> 00:28:36,119
Speaker 4: For Donald Trump.

582
00:28:36,240 --> 00:28:39,520
Speaker 15: Reviving the production of American energy, all forms of energy

583
00:28:39,560 --> 00:28:42,120
Speaker 15: where America can be the leader. Donald Trump favors it

584
00:28:42,480 --> 00:28:47,080
Speaker 15: drilling fracking areas where America can actually establish energy abundance

585
00:28:47,080 --> 00:28:49,920
Speaker 15: sets what Donald Trump favors, and especially in this era

586
00:28:50,040 --> 00:28:53,360
Speaker 15: of AI and the increasing demands for electricity, for power,

587
00:28:53,640 --> 00:28:56,440
Speaker 15: for energy that's particularly important for the United States to

588
00:28:56,480 --> 00:28:59,520
Speaker 15: remain competitive. You think about baseload power generation for the

589
00:28:59,520 --> 00:29:03,239
Speaker 15: electric coal and natural gas are key inputs. A lot

590
00:29:03,280 --> 00:29:05,560
Speaker 15: of Democratic policy has been hostile to both of those,

591
00:29:05,800 --> 00:29:09,800
Speaker 15: anti frarating policies, anti coal policies. By contrast, Denald Trump's

592
00:29:09,800 --> 00:29:12,320
Speaker 15: pro energy policies are not just good for bringing down

593
00:29:12,440 --> 00:29:15,680
Speaker 15: energy prices, so that's important, but also for powering and

594
00:29:15,680 --> 00:29:19,400
Speaker 15: fueling the future generation of AI based technology, revolutions that

595
00:29:19,480 --> 00:29:22,080
Speaker 15: are going to require cheap and abundant energy inputs.

596
00:29:22,360 --> 00:29:23,440
Speaker 4: So that's one example.

597
00:29:23,440 --> 00:29:24,920
Speaker 15: But I could go into each of the areas you

598
00:29:25,000 --> 00:29:26,160
Speaker 15: named and to be happy to do that.

599
00:29:26,600 --> 00:29:29,840
Speaker 5: We had a venture capitalist, well known founder in the

600
00:29:29,880 --> 00:29:32,480
Speaker 5: area of AI and social we had Read Hoffman on

601
00:29:32,480 --> 00:29:36,120
Speaker 5: the show yesterday. Now, he of course favors the other

602
00:29:36,160 --> 00:29:38,840
Speaker 5: side of the equation, and Harris's run for the administration,

603
00:29:39,520 --> 00:29:43,600
Speaker 5: wanting consistency, wanting steady hand, but also is worried about

604
00:29:43,720 --> 00:29:44,680
Speaker 5: forms of retribution.

605
00:29:44,760 --> 00:29:46,480
Speaker 6: Can you just take a listen to what he said yesterday.

606
00:29:47,040 --> 00:29:52,320
Speaker 11: Sure, Trump and Trump presidency one his early presidency has

607
00:29:52,360 --> 00:29:55,240
Speaker 11: shown a certain amount of grifter capitalism. It's like trying

608
00:29:55,320 --> 00:29:58,600
Speaker 11: to penalize his opponents using the instruments of state.

609
00:29:59,520 --> 00:30:04,320
Speaker 5: Will then be any penalization of those who've voiced against him?

610
00:30:04,360 --> 00:30:06,200
Speaker 6: Iveek No, I.

611
00:30:06,200 --> 00:30:08,880
Speaker 15: Think there's going to be no little retribution under Donald Trump.

612
00:30:08,920 --> 00:30:11,000
Speaker 15: But I do find that common a little bit rich

613
00:30:11,080 --> 00:30:13,840
Speaker 15: coming from a Kamala Airas supporter. Where there's only one

614
00:30:13,920 --> 00:30:17,960
Speaker 15: president and administration in US history that is prosecuted or

615
00:30:18,000 --> 00:30:20,760
Speaker 15: attempt to prosecute their rival in the middle of a

616
00:30:20,760 --> 00:30:23,520
Speaker 15: political election, and it wasn't Donald Trump. It's the party

617
00:30:23,520 --> 00:30:26,400
Speaker 15: that Donald Trump is running against, Joe Biden and Kamala Harris.

618
00:30:26,760 --> 00:30:28,600
Speaker 15: So I think this idea of a steady hand. I

619
00:30:28,600 --> 00:30:31,480
Speaker 15: also want to give some airtime to this. The idea

620
00:30:31,480 --> 00:30:32,840
Speaker 15: of Kamala Harris is going to be some kind of

621
00:30:32,880 --> 00:30:35,680
Speaker 15: steady hand when she has reversed her position in a

622
00:30:35,720 --> 00:30:38,960
Speaker 15: matter of months on central questions, whether she favors bans

623
00:30:38,960 --> 00:30:41,479
Speaker 15: on offshore drilling, whether she favors a ban on fracking,

624
00:30:41,680 --> 00:30:44,960
Speaker 15: whether she favors universal healthcare. All of these are positions

625
00:30:44,960 --> 00:30:48,360
Speaker 15: that she held very shortly before running for US president

626
00:30:48,640 --> 00:30:51,280
Speaker 15: that in a matter of months foundational questions about energy

627
00:30:51,320 --> 00:30:53,600
Speaker 15: policy to health policy that have changed in a matter

628
00:30:53,600 --> 00:30:55,680
Speaker 15: of months. I don't think is a strong case for

629
00:30:55,720 --> 00:30:59,080
Speaker 15: a so called steady hand. And one more point, investors,

630
00:30:59,080 --> 00:31:02,280
Speaker 15: and particularly I know this technology focused show, particularly to

631
00:31:02,480 --> 00:31:05,120
Speaker 15: entrepreneurs who have founded successful tech companies that may still

632
00:31:05,160 --> 00:31:07,920
Speaker 15: be privately held, here's a big one that really matters.

633
00:31:08,360 --> 00:31:10,959
Speaker 15: Kamala Harris stands by her support and this is one

634
00:31:11,000 --> 00:31:13,800
Speaker 15: area where she hasn't changed her stance. She stands by

635
00:31:13,840 --> 00:31:18,080
Speaker 15: her support for a tax on unrealized capital gains. That

636
00:31:18,160 --> 00:31:22,320
Speaker 15: means many entrepreneurs, technologists, biotech entrepreneurs who may have paper

637
00:31:22,360 --> 00:31:24,880
Speaker 15: gains and a private company would actually have to pay

638
00:31:24,920 --> 00:31:28,040
Speaker 15: taxes with cash they don't actually have. That would stifle

639
00:31:28,120 --> 00:31:29,760
Speaker 15: innovation across Silicon.

640
00:31:29,440 --> 00:31:30,800
Speaker 4: Valley and across this country.

641
00:31:31,040 --> 00:31:32,760
Speaker 15: And I think it could be the single greatest tricker

642
00:31:32,840 --> 00:31:35,920
Speaker 15: for a stock market crash and a second great depression. So,

643
00:31:36,000 --> 00:31:39,120
Speaker 15: especially for a technology focused audience and a market focused audience,

644
00:31:39,360 --> 00:31:41,600
Speaker 15: that's a big difference between Kamala Harris and Donald Trump.

645
00:31:41,840 --> 00:31:43,480
Speaker 4: You could be a single issue voter on that alone.

646
00:31:43,520 --> 00:31:46,200
Speaker 5: I would argue I think many would feel at the

647
00:31:46,240 --> 00:31:49,479
Speaker 5: moment that the articulation around unrealized capital gains hasn't been

648
00:31:49,520 --> 00:31:53,600
Speaker 5: made so substantively by a Harris campaign. And I'm just

649
00:31:53,640 --> 00:31:55,520
Speaker 5: going to go back to the technology focus, and I'm

650
00:31:55,520 --> 00:31:58,200
Speaker 5: glad that you went there for US VIVEC, because there

651
00:31:58,240 --> 00:32:00,680
Speaker 5: is a technology focus that is Chips. Particularly you are

652
00:32:00,680 --> 00:32:02,800
Speaker 5: currently sat in Ohio. Ohio is going to be a

653
00:32:02,840 --> 00:32:05,479
Speaker 5: beneficiary in many ways of the Chipsacked, billions of dollars

654
00:32:05,480 --> 00:32:10,480
Speaker 5: going to building fabrication manufacturing within that state. And there

655
00:32:10,520 --> 00:32:14,200
Speaker 5: is a potential concern that Donald Trump is against the

656
00:32:14,280 --> 00:32:17,040
Speaker 5: Chips Act. He voiced out vehemently against it on a

657
00:32:17,040 --> 00:32:21,560
Speaker 5: podcast recently. Do you worry about that perhaps being overrun

658
00:32:21,760 --> 00:32:22,640
Speaker 5: changed in direction?

659
00:32:24,120 --> 00:32:24,560
Speaker 4: No, I don't.

660
00:32:24,640 --> 00:32:26,280
Speaker 15: In fact, the reason I was against the Chips Act

661
00:32:26,360 --> 00:32:27,880
Speaker 15: is because there's a lot of other baggage in there

662
00:32:27,880 --> 00:32:30,600
Speaker 15: that shouldn't have been there, hiring impediments such as many

663
00:32:30,600 --> 00:32:33,640
Speaker 15: of those companies semiconductor companies are hiring people outside the

664
00:32:33,760 --> 00:32:36,480
Speaker 15: United States because of the regulatory burdens of doing so

665
00:32:36,600 --> 00:32:39,080
Speaker 15: right here. There's also extra baggage and changing the way

666
00:32:39,120 --> 00:32:42,520
Speaker 15: The National Science Foundation the NSF makes grants on the

667
00:32:42,520 --> 00:32:45,280
Speaker 15: basis of race and gender and other criteria that don't

668
00:32:45,320 --> 00:32:47,960
Speaker 15: relate to merit. So that's the problem with Washington, DC

669
00:32:48,080 --> 00:32:49,880
Speaker 15: is every time they pass one of these laws, the

670
00:32:49,920 --> 00:32:53,120
Speaker 15: Inflation Reduction Act or the Chips Act, there's so much

671
00:32:53,200 --> 00:32:55,680
Speaker 15: other baggage they sneak into there that it dilutes the

672
00:32:55,680 --> 00:32:58,040
Speaker 15: original vision or purpose of the Act in the first place.

673
00:32:58,400 --> 00:33:00,600
Speaker 15: You want to foster semiconductor production in the United States,

674
00:33:00,640 --> 00:33:03,760
Speaker 15: as I do. Here's how we do it, mass deregulation

675
00:33:03,840 --> 00:33:06,960
Speaker 15: that lifts those regulatory constraints in the United States.

676
00:33:07,240 --> 00:33:08,360
Speaker 4: And I will tell you the reason.

677
00:33:08,120 --> 00:33:10,320
Speaker 15: In videos I've become a multi trillion dollar company is

678
00:33:10,360 --> 00:33:12,720
Speaker 15: not because of the Chips Act. It's because of booming

679
00:33:12,840 --> 00:33:15,680
Speaker 15: demand for chips led by the advent of AI and

680
00:33:15,720 --> 00:33:18,120
Speaker 15: the recent revolution and the AI boom that we've seen.

681
00:33:18,480 --> 00:33:19,800
Speaker 4: Viv that lowering of the.

682
00:33:19,720 --> 00:33:22,880
Speaker 15: Cost of capital is far more valuable for semiconductor companies

683
00:33:23,080 --> 00:33:25,360
Speaker 15: than the incremental money in the pocket of the large

684
00:33:25,480 --> 00:33:26,960
Speaker 15: ess that came from the chip sack.

685
00:33:27,040 --> 00:33:28,000
Speaker 4: That's my view on the matter.

686
00:33:28,400 --> 00:33:28,440
Speaker 3: VI.

687
00:33:28,760 --> 00:33:30,880
Speaker 7: May I just jump in on that point on Nvidia

688
00:33:31,080 --> 00:33:33,720
Speaker 7: in video not in isolation, but many of the chip

689
00:33:33,760 --> 00:33:39,200
Speaker 7: companies have had their access to the China market impacted

690
00:33:39,520 --> 00:33:43,280
Speaker 7: by those export controls, and simply put, China is the

691
00:33:43,280 --> 00:33:47,280
Speaker 7: biggest end market for consumer electronics but critically important for

692
00:33:47,360 --> 00:33:51,120
Speaker 7: cloud Are you able to explain to our audience President

693
00:33:51,560 --> 00:33:56,880
Speaker 7: former President Trump's position Visa v. China on key American

694
00:33:56,920 --> 00:33:58,600
Speaker 7: companies being able.

695
00:33:58,400 --> 00:34:00,000
Speaker 8: To do business in that market.

696
00:34:01,120 --> 00:34:02,880
Speaker 15: Well, I'll give you a base principle that I hope

697
00:34:02,880 --> 00:34:06,080
Speaker 15: people can agree with, regardless of partisanship. We should not

698
00:34:06,360 --> 00:34:09,280
Speaker 15: depend on our adversary for our own national security.

699
00:34:09,480 --> 00:34:11,359
Speaker 4: You want to talk about chips, forty.

700
00:34:11,040 --> 00:34:14,680
Speaker 15: Percent of the semiconductors feeding our Department of Defense, including

701
00:34:14,719 --> 00:34:17,040
Speaker 15: the Army, Navy, Air Force, actually.

702
00:34:16,840 --> 00:34:17,799
Speaker 4: Come from China.

703
00:34:17,920 --> 00:34:20,239
Speaker 15: That doesn't make any sense for our own military and

704
00:34:20,280 --> 00:34:23,720
Speaker 15: industrial base, our own military stockpiles.

705
00:34:23,080 --> 00:34:25,399
Speaker 4: To depend on our adversary to provide them.

706
00:34:25,440 --> 00:34:27,759
Speaker 15: God forbid, We're in a conflict scenario, and that's something

707
00:34:27,800 --> 00:34:30,480
Speaker 15: that nobody wants for sure, But God forbid, we are

708
00:34:30,480 --> 00:34:32,560
Speaker 15: in a conflict scenario with an adversary. They're not going

709
00:34:32,640 --> 00:34:35,040
Speaker 15: to keep supplying those inputs. And so I think it

710
00:34:35,120 --> 00:34:36,960
Speaker 15: is sensible policy, and I don't care if you're a

711
00:34:36,960 --> 00:34:39,520
Speaker 15: Republican or a Democrat for the United States to say

712
00:34:39,560 --> 00:34:42,880
Speaker 15: in sectors critical to our national security, at least for

713
00:34:42,920 --> 00:34:46,040
Speaker 15: our military industrial base. We should not be dependent on

714
00:34:46,080 --> 00:34:48,760
Speaker 15: our chief adversary, and I think that's sensible policy.

715
00:34:49,000 --> 00:34:50,640
Speaker 4: Donald Trump, I think, above all one of the.

716
00:34:50,600 --> 00:34:52,000
Speaker 15: Things I like about him he is a businessman but

717
00:34:52,040 --> 00:34:55,240
Speaker 15: also a pragmatist. When it comes to these foreign policy dealings,

718
00:34:55,600 --> 00:34:57,359
Speaker 15: he was respected and I think that put the US

719
00:34:57,360 --> 00:34:59,960
Speaker 15: in a stronger position in a lot of those negotiations.

720
00:35:00,719 --> 00:35:03,160
Speaker 7: Mister Ramaswami, there was some interest in you when I

721
00:35:03,200 --> 00:35:05,080
Speaker 7: said on social media you were coming on the show.

722
00:35:05,120 --> 00:35:06,880
Speaker 7: We got a number of questions from the audience, but

723
00:35:06,920 --> 00:35:09,200
Speaker 7: I'm going to put one to you, if that's okay.

724
00:35:09,239 --> 00:35:12,040
Speaker 7: One user says, please ask him how much of his

725
00:35:12,120 --> 00:35:14,279
Speaker 7: own money was spent on his campaign. I think a

726
00:35:14,360 --> 00:35:17,440
Speaker 7: reference to your early run as a candidate. Has it

727
00:35:17,480 --> 00:35:20,759
Speaker 7: given you an acceptable ROI? And what was the exposure

728
00:35:20,760 --> 00:35:23,959
Speaker 7: and network effect for you in doing this supporting former

729
00:35:24,000 --> 00:35:24,760
Speaker 7: President Trump?

730
00:35:25,520 --> 00:35:27,360
Speaker 15: Yeah, so the answer in visual public record. I'm going

731
00:35:27,400 --> 00:35:28,799
Speaker 15: to give you round numbers. It was a little over

732
00:35:28,800 --> 00:35:31,560
Speaker 15: thirty million dollars of my own hard earned money. By

733
00:35:31,560 --> 00:35:33,480
Speaker 15: the way, I didn't inherit money. My parents came to

734
00:35:33,520 --> 00:35:35,680
Speaker 15: this country with no money. But I'm a self made

735
00:35:35,800 --> 00:35:38,759
Speaker 15: entrepreneur who's found in multi billion dollar companies, and the

736
00:35:38,880 --> 00:35:40,880
Speaker 15: ROI on that I measure is not related to me.

737
00:35:41,120 --> 00:35:43,400
Speaker 15: It's related to the impact we have on our country.

738
00:35:43,640 --> 00:35:45,640
Speaker 15: I was the youngest person ever to run for US

739
00:35:45,760 --> 00:35:48,120
Speaker 15: President as a Republican, and one of the things I

740
00:35:48,160 --> 00:35:49,959
Speaker 15: was proud we were able to do was to bring

741
00:35:50,120 --> 00:35:54,759
Speaker 15: non traditional, disengaged citizens back into politics actually caring about

742
00:35:54,800 --> 00:35:55,800
Speaker 15: our country.

743
00:35:55,800 --> 00:35:56,760
Speaker 4: Especially young people.

744
00:35:56,840 --> 00:35:59,400
Speaker 15: I showed up on a college campus in Pennsylvania yesterday,

745
00:36:00,000 --> 00:36:02,080
Speaker 15: two thousand plus young people that showed up just to

746
00:36:02,120 --> 00:36:04,960
Speaker 15: hear the conversations we were having, one on one at

747
00:36:04,960 --> 00:36:07,440
Speaker 15: a time. That gave me a sense of inspiration. It

748
00:36:07,440 --> 00:36:10,799
Speaker 15: gave me a sense of deep gratification and satisfaction to

749
00:36:10,840 --> 00:36:13,480
Speaker 15: say that this journey that I began in February of

750
00:36:13,560 --> 00:36:16,040
Speaker 15: last year, where nobody knew my name, let alone could

751
00:36:16,040 --> 00:36:18,279
Speaker 15: pronounce it, I was at zero point zero percent in

752
00:36:18,320 --> 00:36:20,439
Speaker 15: the polls, and by the end of the race less

753
00:36:20,440 --> 00:36:23,440
Speaker 15: than a year later, had beaten a vice president, multiple governors,

754
00:36:23,440 --> 00:36:26,440
Speaker 15: and a former senator. It proves what's possible in the

755
00:36:26,520 --> 00:36:29,120
Speaker 15: United States of America, and so was it worth it?

756
00:36:29,360 --> 00:36:30,040
Speaker 4: Absolutely?

757
00:36:30,080 --> 00:36:32,560
Speaker 15: And I hope that our best days as a country,

758
00:36:32,560 --> 00:36:36,160
Speaker 15: and my own ability to have an impact on it.

759
00:36:34,960 --> 00:36:35,960
Speaker 4: Is still ahead of us.

760
00:36:36,000 --> 00:36:37,880
Speaker 5: Some of those young people perhaps you're talking to, care

761
00:36:37,920 --> 00:36:41,200
Speaker 5: about crypto. One of those companies that you formed, Strive

762
00:36:41,200 --> 00:36:44,000
Speaker 5: Asset Management one point seven billion dollars in assets under management,

763
00:36:44,840 --> 00:36:47,200
Speaker 5: is going to be going and buying in on bitcoin

764
00:36:47,280 --> 00:36:49,839
Speaker 5: for the first time. Can you just articulate for us

765
00:36:49,880 --> 00:36:53,360
Speaker 5: what you think the crypto policies will be under Trump.

766
00:36:54,360 --> 00:36:54,520
Speaker 11: Yeah.

767
00:36:54,560 --> 00:36:56,440
Speaker 15: First of all, I'm credibly proud of Striving as a

768
00:36:56,440 --> 00:36:58,719
Speaker 15: business I co founded. I stepped down as chairman before

769
00:36:58,760 --> 00:37:01,080
Speaker 15: I ran for president, So proud of the team.

770
00:37:00,840 --> 00:37:01,919
Speaker 4: And what they've accomplished.

771
00:37:02,280 --> 00:37:04,960
Speaker 15: Matt Cole, he's the CEO who was formerly a successful

772
00:37:04,960 --> 00:37:08,440
Speaker 15: bond portfolio manager at Calper's, is really leading stride with

773
00:37:08,440 --> 00:37:10,759
Speaker 15: the vision for financial freedom, which I'm so proud of

774
00:37:10,760 --> 00:37:13,040
Speaker 15: what they've done. I'm going to view on the future

775
00:37:13,040 --> 00:37:16,239
Speaker 15: of crypto policy is it's less related to helping one

776
00:37:16,360 --> 00:37:19,560
Speaker 15: sector and more related to just reviving the principles the

777
00:37:19,560 --> 00:37:22,760
Speaker 15: country was founded on in the first place. Unbridled innovation

778
00:37:23,080 --> 00:37:24,879
Speaker 15: competition as the answer, but.

779
00:37:24,840 --> 00:37:27,799
Speaker 6: There should be some regulation. It should totally be unbridled.

780
00:37:28,560 --> 00:37:30,760
Speaker 15: Well, the first thing I would say is unbridled innovation.

781
00:37:30,920 --> 00:37:33,279
Speaker 15: What we really need is regulatory clarity. So I think

782
00:37:33,320 --> 00:37:35,960
Speaker 15: it is a sad state of affairs where you see

783
00:37:36,120 --> 00:37:39,600
Speaker 15: a paradigm of regulation by enforcement, where many participants in

784
00:37:39,600 --> 00:37:41,600
Speaker 15: the industry don't know what the rules are in the

785
00:37:41,600 --> 00:37:42,160
Speaker 15: first place.

786
00:37:42,480 --> 00:37:43,800
Speaker 4: So we can debate what the rules are or what

787
00:37:43,840 --> 00:37:45,759
Speaker 4: they should be. I think that's a reasonable debate to have.

788
00:37:46,239 --> 00:37:48,160
Speaker 15: But what we can't have is a situation where people

789
00:37:48,160 --> 00:37:50,560
Speaker 15: are guessing at what those rules are. I'll give you

790
00:37:50,560 --> 00:37:53,480
Speaker 15: one example of that, when the the lead Commissioner of

791
00:37:53,480 --> 00:37:57,239
Speaker 15: the SEC could not answer before Congress whether ethereum was

792
00:37:57,280 --> 00:37:58,120
Speaker 15: even a security.

793
00:37:58,480 --> 00:38:00,799
Speaker 4: Maybe it is and maybe it shouldn't be. But either way,

794
00:38:00,840 --> 00:38:02,600
Speaker 4: at least the industry deserves to know.

795
00:38:03,120 --> 00:38:06,040
Speaker 15: And so I think regulation in the first principle, whether

796
00:38:06,040 --> 00:38:08,000
Speaker 15: you're on the left or right, should be clarity, and

797
00:38:08,040 --> 00:38:09,680
Speaker 15: I think that's missing in this sector, as in so

798
00:38:09,680 --> 00:38:10,480
Speaker 15: many others today.

799
00:38:11,440 --> 00:38:14,440
Speaker 7: Viveg Ramaswami, thank you for coming back on Bloomberg Technology.

800
00:38:14,480 --> 00:38:15,520
Speaker 8: We appreciate your time.

801
00:38:17,360 --> 00:38:21,200
Speaker 7: Intel gave a fourth quarter revenue forecast that sparking optimism

802
00:38:21,320 --> 00:38:24,640
Speaker 7: is capable of reclaiming some lost market share. We sat

803
00:38:24,640 --> 00:38:27,759
Speaker 7: down with Intel CEO Pat Gelsinger yesterday, straight from the

804
00:38:27,800 --> 00:38:29,680
Speaker 7: company's call with analysts, Listen to this.

805
00:38:30,760 --> 00:38:34,240
Speaker 16: We worked very hard this quarter to get this done

806
00:38:34,600 --> 00:38:39,520
Speaker 16: and the people actions. The restructuring charges you'll largely finished

807
00:38:39,600 --> 00:38:42,640
Speaker 16: this quarter, So it was a challenging quarter that way,

808
00:38:42,960 --> 00:38:46,279
Speaker 16: but to also deliver better than expect the results if

809
00:38:46,320 --> 00:38:49,719
Speaker 16: we eliminate those one time chargers, and to take our

810
00:38:49,760 --> 00:38:52,359
Speaker 16: guidance up for Q four. I'm very proud of our

811
00:38:52,400 --> 00:38:54,520
Speaker 16: team being able to do both of those this quarter.

812
00:38:54,600 --> 00:38:58,000
Speaker 16: Some of the most difficult restructuring charges maybe in the

813
00:38:58,040 --> 00:39:01,440
Speaker 16: history of Intel since our memory micro processor decision almost

814
00:39:01,480 --> 00:39:05,120
Speaker 16: forty years ago. Getting that done and still beating results

815
00:39:05,120 --> 00:39:08,600
Speaker 16: and taking the guide up, this was a very significant

816
00:39:08,640 --> 00:39:10,360
Speaker 16: quarter for our team to execute.

817
00:39:10,440 --> 00:39:13,600
Speaker 7: Your AI accelerator did not get the traction that you'd hoped,

818
00:39:13,640 --> 00:39:16,560
Speaker 7: and you won't be making the outline target of five

819
00:39:16,640 --> 00:39:19,400
Speaker 7: hundred million dollars in sales for this fiscal year or

820
00:39:19,440 --> 00:39:23,400
Speaker 7: calendar year. Why is it a use case issue that

821
00:39:23,480 --> 00:39:26,759
Speaker 7: the data center operators aren't looking at it or something else.

822
00:39:27,920 --> 00:39:30,680
Speaker 16: Yeah, two factors that we pointed out. One is is

823
00:39:30,719 --> 00:39:33,200
Speaker 16: that now we have Gouty three coming out, so there's

824
00:39:33,200 --> 00:39:37,279
Speaker 16: more enthusiasm for the next generation product that we're just

825
00:39:37,360 --> 00:39:40,400
Speaker 16: starting to ramp now. The second one is the software

826
00:39:40,840 --> 00:39:43,840
Speaker 16: and the software use cases. The AI world has moved

827
00:39:44,080 --> 00:39:48,920
Speaker 16: very rapidly and innovating very quickly, and the robustness and

828
00:39:48,960 --> 00:39:52,000
Speaker 16: the completeness of the Goudy software A stack hasn't been

829
00:39:52,040 --> 00:39:57,040
Speaker 16: as great. And it's an accelerator, not a full reprogrammable GPU,

830
00:39:57,200 --> 00:40:00,560
Speaker 16: so that makes some of the software porting and optimzations

831
00:40:00,600 --> 00:40:04,000
Speaker 16: a bit more difficult. Obviously, as we get more of

832
00:40:04,040 --> 00:40:08,000
Speaker 16: that running on Goudi, we solve the software problems. But

833
00:40:08,120 --> 00:40:12,160
Speaker 16: secondly then it's also to move to a complete GPU capability,

834
00:40:12,280 --> 00:40:15,600
Speaker 16: which we'll be doing out in time, and that development

835
00:40:15,600 --> 00:40:17,759
Speaker 16: effort is also well underway, so we feel we have

836
00:40:17,800 --> 00:40:19,080
Speaker 16: a solid position.

837
00:40:19,360 --> 00:40:21,080
Speaker 6: Intel CEO Pat Gelsinger there.

838
00:40:21,480 --> 00:40:24,640
Speaker 5: Meanwhile, open Ai is further challenging Google, this time by

839
00:40:24,680 --> 00:40:26,839
Speaker 5: adding a new set of search features that will let

840
00:40:26,880 --> 00:40:30,120
Speaker 5: chatchipt use is search for timely information much as they

841
00:40:30,120 --> 00:40:33,080
Speaker 5: would if they were on the web using Google most sharing.

842
00:40:33,160 --> 00:40:35,320
Speaker 6: Gafari joins us for more now. They had a prototype

843
00:40:35,360 --> 00:40:35,879
Speaker 6: out in July.

844
00:40:36,480 --> 00:40:39,879
Speaker 5: Now it's accessible if you're paying for chat GPT. How

845
00:40:39,960 --> 00:40:43,400
Speaker 5: much is this going to make Google and Gemini a

846
00:40:43,480 --> 00:40:46,080
Speaker 5: run for its money.

847
00:40:46,600 --> 00:40:50,160
Speaker 1: I think this is going to be a potentially very

848
00:40:50,160 --> 00:40:54,240
Speaker 1: big long term competitor and threat to search as a whole.

849
00:40:54,800 --> 00:40:59,640
Speaker 1: We've seen viral growth right of consumer chatbots since chatchipt's release,

850
00:41:00,320 --> 00:41:03,000
Speaker 1: setting records for the amount of users gained in a

851
00:41:03,040 --> 00:41:05,319
Speaker 1: short period of time. So if that continues and we

852
00:41:05,360 --> 00:41:07,960
Speaker 1: really do see this consumer shift toward chatbots in a

853
00:41:08,000 --> 00:41:11,000
Speaker 1: meaningful way, why wouldn't users just start to search within

854
00:41:11,080 --> 00:41:14,120
Speaker 1: chatbots rather than going to a separate website.

855
00:41:14,280 --> 00:41:18,359
Speaker 7: Sarina, I got access to search through paying for chat

856
00:41:18,440 --> 00:41:20,320
Speaker 7: gbt yesterday, and you and I were looking on the

857
00:41:21,200 --> 00:41:23,799
Speaker 7: app version. But I think there's a benefit for our

858
00:41:23,800 --> 00:41:27,040
Speaker 7: audience and you explaining what's different between chat gbt four

859
00:41:27,120 --> 00:41:30,040
Speaker 7: oh and when search is engaged at least in app.

860
00:41:33,040 --> 00:41:36,080
Speaker 1: That's right, So you can right now, if you are

861
00:41:36,520 --> 00:41:40,120
Speaker 1: a paid user or a team user, actually get access

862
00:41:40,160 --> 00:41:42,800
Speaker 1: to this within one specific model.

863
00:41:42,800 --> 00:41:45,040
Speaker 3: It's called four oh and chat Shabt's chatbot.

864
00:41:45,960 --> 00:41:49,120
Speaker 1: And you know Chatweabet's always had the option for you

865
00:41:49,200 --> 00:41:51,640
Speaker 1: to go and browse the web, but now it's much

866
00:41:51,640 --> 00:41:54,759
Speaker 1: more integrated into the app. So you see, you know,

867
00:41:54,800 --> 00:41:57,160
Speaker 1: little cards that kind of give you a preview. For example,

868
00:41:57,239 --> 00:41:59,840
Speaker 1: I looked up restaurants in San Francisco when I was

869
00:41:59,840 --> 00:42:04,200
Speaker 1: doing a demo, and we saw, you know, little images

870
00:42:04,360 --> 00:42:05,920
Speaker 1: of different restaurants that you could look at.

871
00:42:05,960 --> 00:42:06,680
Speaker 3: You see a map.

872
00:42:06,920 --> 00:42:09,160
Speaker 1: So it feels a lot more like you're getting a

873
00:42:09,239 --> 00:42:12,480
Speaker 1: sort of Google like experience within the chatbot rather than

874
00:42:12,640 --> 00:42:14,120
Speaker 1: just simple text.

875
00:42:14,280 --> 00:42:14,440
Speaker 4: Right.

876
00:42:16,520 --> 00:42:18,680
Speaker 7: I point out, and we probably should point out that

877
00:42:18,719 --> 00:42:22,239
Speaker 7: when your story hit the Bloomberg shares ab alphabet fell

878
00:42:22,520 --> 00:42:25,560
Speaker 7: and to a session load, that's how serious everyone's taking

879
00:42:25,600 --> 00:42:28,520
Speaker 7: this battle for search. Bloomberg Sharing Gafari Top week of

880
00:42:28,560 --> 00:42:29,840
Speaker 7: reporting in the world of AI.

881
00:42:30,160 --> 00:42:32,479
Speaker 8: Thank you so much, Caro. Wow, what a week.

882
00:42:32,680 --> 00:42:33,120
Speaker 6: What a week.

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Speaker 5: And there's going to be so much more to come

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Speaker 5: next week. That does it, though, for this edition of

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Speaker 5: Bloomberg Technology and really.

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Speaker 7: Important conversations about technology, the elections, so much more recap

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Speaker 7: on the pod. You know where to find it from

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Speaker 7: the team in New York, can hear in SF.

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Speaker 8: Happy Friday. This is Bloomberg Technology.