WEBVTT - SoftBank’s Son Pitches $1 Trillion US AI Hub 0:00:00.080 --> 0:00:13.440 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.480 --> 0:00:17.320 from coast to coast with Caroline Hyde in New York 0:00:17.560 --> 0:00:19.600 and ever Though in San Francisco. 0:00:21.680 --> 0:00:25.400 This is Bloomberg Tech coming up one trillion dollars for 0:00:25.480 --> 0:00:28.840 a USAI hub, the latest big bet being pitched by SoftBank, 0:00:28.880 --> 0:00:31.720 band of Masayosti's son. We dig into the reality of 0:00:31.760 --> 0:00:34.760 the numbers. Plus Meta launches three hundred and ninety nine 0:00:34.760 --> 0:00:38.559 dollars oakly AI glasses aimed at athletes and thrill seekers. 0:00:38.680 --> 0:00:42.600 We discussed the surprise hit smart glasses and China's baid Eyes, 0:00:42.640 --> 0:00:46.440 a Robotaxi expansion in Asia. We discuss the next steps 0:00:46.520 --> 0:00:49.760 for a the adoption. But we're also eyeing what's happening 0:00:49.760 --> 0:00:51.520 in terms of Middle East tensions. I want to move 0:00:51.520 --> 0:00:55.200 into those Middle Eastern tensions as well, because look, more broadly, 0:00:55.240 --> 0:00:59.680 we are seeing Israeli officials warning that Iran is tapping 0:00:59.720 --> 0:01:05.800 into private, securely focused cameras to gather some information, particular 0:01:05.959 --> 0:01:08.200 intelligence against adversaries. 0:01:08.319 --> 0:01:09.920 Now it's going to be a. 0:01:09.959 --> 0:01:13.520 Key focus that we've seen repeated with hamas with Russia 0:01:13.560 --> 0:01:16.920 in other conflicts. Bloomberg's Mike Shephard joins US now on 0:01:17.000 --> 0:01:19.400 what is some deep investigation, mic. 0:01:21.040 --> 0:01:21.200 Cara. 0:01:21.400 --> 0:01:26.680 This is something that highlights a longstanding vulnerability with surveillance cameras, 0:01:26.720 --> 0:01:30.520 which have become ubiquitous around the world. When we look 0:01:30.600 --> 0:01:34.119 in our homes, even you see those doorbell cameras, and 0:01:34.240 --> 0:01:38.840 you go to any office or department store, there are 0:01:38.880 --> 0:01:42.000 cameras everywhere, even on the streets. Yet the data that 0:01:42.080 --> 0:01:45.960 is being gathered, the images, the footage is not necessarily 0:01:46.000 --> 0:01:49.360 as secure. We've seen instances several years ago of hacks 0:01:49.440 --> 0:01:54.480 of startups that had just reams of data from tens 0:01:54.480 --> 0:01:57.600 of thousands of surveillance cameras. But there is also a 0:01:57.640 --> 0:02:00.840 geopolitical concern as well, and we see the highlighted with 0:02:01.080 --> 0:02:04.400 Israel warning citizens to either turn the cameras off or 0:02:04.480 --> 0:02:06.880 at the very least update the passwords. 0:02:07.520 --> 0:02:07.920 Okay. 0:02:08.040 --> 0:02:10.440 So a key call to their own citizens at the 0:02:10.440 --> 0:02:14.160 moment and one that will follow throughout. But from real 0:02:14.320 --> 0:02:17.639 war tensions to the global trade war once more, Mike, 0:02:17.840 --> 0:02:20.480 there's some really interesting news breaking very recently across the 0:02:20.480 --> 0:02:23.040 BlueBag terminal coming from the Wall Street Journal talking about 0:02:23.040 --> 0:02:28.080 how the US is preparing action targeting Allies chip plants 0:02:28.160 --> 0:02:31.120 in China. In particular, there's talk of ending waivers for 0:02:31.160 --> 0:02:34.560 the likes of TSMCSK, Heinek, Samsung that actually make chips 0:02:34.560 --> 0:02:36.640 in China. Right, it seems to be trying to make 0:02:36.680 --> 0:02:39.760 it harder for global chip makers basically to operate in China. 0:02:41.120 --> 0:02:44.160 Well to a degree, yes, and the idea from the 0:02:44.240 --> 0:02:47.600 Trump administration is to what they see it as according 0:02:47.680 --> 0:02:50.560 to the journals reporting, level the playing field when it 0:02:50.560 --> 0:02:54.280 comes to requirements for rare earths to be shipped to 0:02:54.320 --> 0:02:57.280 the US. In other words, the same degree of licensing 0:02:57.680 --> 0:03:01.280 required for that would soon be perhaps required for bringing 0:03:01.360 --> 0:03:07.800 American technology, American chip making equipment into China or at 0:03:07.880 --> 0:03:13.320 least updated or repaired in the Chinese market. Remember that TSMCSK, Heinix, 0:03:13.360 --> 0:03:16.200 and Samsung produce a lot of chips for the American 0:03:16.240 --> 0:03:21.040 market in China, but what they use is US equipment 0:03:21.120 --> 0:03:25.040 and equipment from overseas. Use equipment would now need a license. 0:03:25.120 --> 0:03:27.400 Rather than just getting a blanket waiver where you can 0:03:27.440 --> 0:03:29.600 bring it in without having to check every time with 0:03:29.680 --> 0:03:33.320 the US government, you would need that level of permission. Now, 0:03:33.360 --> 0:03:36.080 this is not pertaining to the most advanced, the highest 0:03:36.200 --> 0:03:38.840 end AI chips, for instance, this is a lot of 0:03:38.840 --> 0:03:43.280 the legacy level semiconductors, the older generation chips that go 0:03:43.360 --> 0:03:47.720 into automobiles, consumer electronics, and other lower end things. So 0:03:47.760 --> 0:03:50.760 it's not exactly targeting the upper end that we've seen 0:03:50.800 --> 0:03:54.840 the US government do, for instance by barring AMD in 0:03:54.960 --> 0:03:58.760 video of course, from selling their most advanced AI chips. Instead, 0:03:58.840 --> 0:04:01.720 this is taking aim in a different end of production 0:04:01.960 --> 0:04:04.160 in China of certain kinds of chips. 0:04:04.320 --> 0:04:07.080 Mike Sheffin breaking it all down for us around the world, 0:04:07.080 --> 0:04:09.040 thank you so much. Now, look, there is another top 0:04:09.040 --> 0:04:11.800 story that we're watching. SoftBank founder Massio Shei's son is 0:04:11.800 --> 0:04:15.400 planning a trillion dollar industrial complex in Arizona. It's to 0:04:15.400 --> 0:04:19.240 build robots. Further, it's AI endeavors. Look TSMC potentially playing 0:04:19.279 --> 0:04:22.080 a key role here. Lumberg's Peter Elstrom joins us to 0:04:22.080 --> 0:04:22.640 break it down. 0:04:23.160 --> 0:04:28.160 One trillion is a lot, One trillion is a lot, Caroline. 0:04:28.320 --> 0:04:31.640 Yeah, So Masio Sheisana has another big bowld vision. What 0:04:31.720 --> 0:04:36.200 he's pitching companies like TSMC and Samsung on now is 0:04:36.240 --> 0:04:39.320 building out these industrial parks and places like Arizona in 0:04:39.360 --> 0:04:42.080 the United States. The ideal is to kind of appeal 0:04:42.120 --> 0:04:44.920 to the Trump administration and try to bring some advanced 0:04:44.920 --> 0:04:48.039 manufacturing back to the United States. Now. There are a 0:04:48.040 --> 0:04:50.479 few related projects going on right now, and it's not 0:04:50.560 --> 0:04:54.360 as crazy as it may sound at first. Blush TSMC, 0:04:54.400 --> 0:04:56.159 for example, is trying to bring in a lot of 0:04:56.200 --> 0:04:59.279 its suppliers into Arizona into the United States so that 0:04:59.320 --> 0:05:02.920 it can produce more of the advanced chips within the country. 0:05:03.000 --> 0:05:05.880 Samsung is doing a very similar thing in Texas. And 0:05:06.000 --> 0:05:09.280 remember soft Bank spent years investing in startups and they 0:05:09.320 --> 0:05:12.280 have hundreds of startups that would be able to put 0:05:12.560 --> 0:05:14.680 facilities there. And the focus here is going to be 0:05:14.680 --> 0:05:17.039 on AI and robotics. Those are two big areas for 0:05:17.080 --> 0:05:19.799 their investments. So you could also see some soft Bank 0:05:20.200 --> 0:05:22.520 backed companies move into these kinds of ventures. 0:05:23.120 --> 0:05:25.839 Okay, so it doesn't sound as crazy as it seems 0:05:25.880 --> 0:05:29.159 as how you articulate it, Peter, But we know that 0:05:29.279 --> 0:05:32.920 actually promising money and deploying it at two very different things. 0:05:33.080 --> 0:05:36.960 And actually Stargate, for example, already what massiochisn has been 0:05:37.000 --> 0:05:40.440 wooing President Trump with and in line with Oracle and 0:05:40.520 --> 0:05:42.880 Open Ai to build infrastructure in the US that's been 0:05:43.080 --> 0:05:45.520 hard to deploy right. 0:05:45.440 --> 0:05:47.719 Right, that's only five hundred billion in Carolina. 0:05:47.720 --> 0:05:49.000 That's much more reasonable. 0:05:49.160 --> 0:05:51.880 Yeah, they talked about the Stargate venture with open AI 0:05:52.000 --> 0:05:54.560 in particular, where they're going to build out data centers 0:05:54.560 --> 0:05:56.840 in the United States. That began as one hundred billion 0:05:56.880 --> 0:05:59.080 dollar venture and then they said, hey, this could get 0:05:59.120 --> 0:06:01.839 as big as five hundred billion dollars. But as we've reported, 0:06:01.839 --> 0:06:05.640 they ran into some problems there in terms of the financing. 0:06:05.880 --> 0:06:08.200 Some of the terriff issues that the Trump administration was 0:06:08.200 --> 0:06:11.080 talking about ran into their ability to be able to 0:06:11.080 --> 0:06:12.800 get banks on board, to be able to get the 0:06:12.839 --> 0:06:15.000 money to be able to get some of these projects underway. 0:06:15.040 --> 0:06:16.760 So that's going a little bit slow at this point. 0:06:16.880 --> 0:06:19.520 And you're exactly right when it comes to this adventure 0:06:19.520 --> 0:06:22.200 that we're talking about now, the industrial parks that also 0:06:22.200 --> 0:06:25.040 would need financing. It's not clear how quickly they'd be 0:06:25.080 --> 0:06:26.200 able to pull that together. 0:06:26.440 --> 0:06:26.600 Now. 0:06:26.760 --> 0:06:30.479 Selt Bank has had preliminary conversations with state officials, Howard 0:06:30.520 --> 0:06:33.320 Lutnick's office at the Commerce Department in particular, so they 0:06:33.360 --> 0:06:36.120 have begun some of these conversations. It's not clear exactly 0:06:36.200 --> 0:06:38.320 how far along they are. It will depend on whether 0:06:38.320 --> 0:06:40.280 they get some of the tax incentives that they want. 0:06:40.279 --> 0:06:43.080 Some of the other corporate support to determine whether they're 0:06:43.080 --> 0:06:44.000 going to be able to proceed. 0:06:44.640 --> 0:06:47.360 Peter astrom Me, thank you for bringing us the story. 0:06:47.480 --> 0:06:51.239 Let's dig in now with Jordan Klin. Mazuoko America's managing director, 0:06:51.640 --> 0:06:54.719 actually wrote about this soft bank promise in his morning note. 0:06:54.760 --> 0:06:55.640 You're joining us. 0:06:55.520 --> 0:06:57.919 Now so much to cover you think this is perhaps 0:06:57.960 --> 0:06:59.039 more of a marketing employee. 0:07:00.839 --> 0:07:03.279 Yeah, that's that's where the you know, the skeptic in 0:07:03.360 --> 0:07:05.720 me thinks it's it's a little bit more of that. 0:07:05.839 --> 0:07:08.520 I mean, you never want to underestimate soft bank. And 0:07:09.040 --> 0:07:12.240 when it comes to AI and robotics, I think there's 0:07:12.280 --> 0:07:14.840 a lot of interest, particularly from the capital markets, but 0:07:15.560 --> 0:07:17.720 you know, the size and the scale seem a little 0:07:17.760 --> 0:07:20.880 bit trumped up, so to speak, I think, and the 0:07:20.960 --> 0:07:23.960 timing I would question as well. Like and that's why 0:07:24.000 --> 0:07:25.760 I don't think you're seeing the stocks move at all, 0:07:25.800 --> 0:07:28.760 because investors are just kind of, you know, somewhat immune 0:07:28.840 --> 0:07:31.120 to these sort of numbers that keep you know, going 0:07:31.200 --> 0:07:34.560 up and up, but they're not necessarily you know, believing 0:07:34.600 --> 0:07:36.560 that that's going to impact the stocks anytime soon. 0:07:36.920 --> 0:07:38.720 I love that you say we're becoming immune to these 0:07:38.760 --> 0:07:41.280 sorts of numbers. That sort of number was actually articulated 0:07:41.320 --> 0:07:43.520 by Samumon a little bit ago with our own memory. 0:07:43.600 --> 0:07:45.520 Chang, just take and listen to Sam's point here. 0:07:47.080 --> 0:07:49.280 The interesting question is if we had if we knew 0:07:49.280 --> 0:07:51.120 how to get a trillion dollars right now, if we don't, 0:07:51.760 --> 0:07:54.320 would we be able to deploy that profitably in the 0:07:54.360 --> 0:07:57.880 next few years? And I'm not sure about that, but 0:07:57.920 --> 0:07:59.960 I feel confident we can like make five hundred million 0:08:00.120 --> 0:08:00.640 value back. 0:08:02.200 --> 0:08:06.520 Samonman is saying he's confident he can get half of 0:08:06.560 --> 0:08:09.480 your money back if you give him a trillion. So, ultimately, 0:08:09.640 --> 0:08:11.800 are these the right bets to be betting on as 0:08:11.800 --> 0:08:15.600 an investor in the likely winners? Would you still allocate 0:08:15.600 --> 0:08:18.800 to TSMC if indeed a trillion is talked about in 0:08:18.840 --> 0:08:19.960 Arizona for example? 0:08:21.480 --> 0:08:24.720 Well, I love TSM personally, and I really like a 0:08:24.720 --> 0:08:27.720 lot of these AI compute names that are going to 0:08:27.720 --> 0:08:33.440 facilitate a lot of this expansion into gen Ai. But honestly, 0:08:33.480 --> 0:08:36.240 I don't think you need the trillion dollar headlines to 0:08:36.320 --> 0:08:40.800 make these stocks look attractive or compelling. Everything in the 0:08:40.840 --> 0:08:44.560 near term sounds like the demand for AI tokens and 0:08:44.640 --> 0:08:47.880 inferencing is rising and Video is doing a great job 0:08:47.920 --> 0:08:50.559 of improving the production and output of their new Blackwell 0:08:51.200 --> 0:08:54.520 server racks and the cloud Hyperscalers who buy all this 0:08:54.600 --> 0:08:59.080 equipment all seem keen to increase investment as opposed to 0:08:59.360 --> 0:09:02.520 limited or low it down. So yeah, it's great when 0:09:02.800 --> 0:09:06.600 soft Bank and others talk big picture plans down the road, 0:09:07.240 --> 0:09:09.559 but I think there's just so much demand and interest 0:09:09.760 --> 0:09:14.120 near term that investors should be focused, you know, more 0:09:14.160 --> 0:09:17.840 on that and less on you know, big scale projects 0:09:17.880 --> 0:09:20.640 that may or may not come about because as your 0:09:21.080 --> 0:09:25.040 you know, prior analysts mentioned before this piece, you know, 0:09:25.080 --> 0:09:29.800 there's a lot of regulation in government involvement that would 0:09:29.840 --> 0:09:34.160 need to come to pass even before you can even entertain. 0:09:33.800 --> 0:09:35.800 Some of this talking of government involvement. 0:09:35.880 --> 0:09:37.680 That's perhaps what's in the eye of the storm for 0:09:37.720 --> 0:09:38.559 investors right now. 0:09:38.559 --> 0:09:39.640 I'm seeing nvidios of. 0:09:39.640 --> 0:09:42.679 Near session lows at the moment and others that perhaps 0:09:42.720 --> 0:09:45.800 make things in China, particularly chips, because there's Wall Street 0:09:45.880 --> 0:09:48.120 Journal reporting saying that the US might make it even 0:09:48.240 --> 0:09:51.800 harder to use US equipment in China, the likes of 0:09:51.840 --> 0:09:55.280 tsmcsk Henich, Samsung, for example. How much of a headwind 0:09:55.360 --> 0:09:57.200 is this for the overall semiconductor space. 0:09:58.920 --> 0:10:01.719 Well, it's a great question, and I think what you're 0:10:01.760 --> 0:10:06.680 seeing here is these reports get leaked or information from 0:10:06.840 --> 0:10:09.760 the administration gets leaked to the press. They put out 0:10:09.760 --> 0:10:13.200 stories that talk about potential restrictions that the US could 0:10:13.280 --> 0:10:17.800 put on our intellectual property, our leading edge equipment and 0:10:17.840 --> 0:10:21.920 technology that would go either to our allies or anyone 0:10:21.960 --> 0:10:25.160 related to China. And in my opinion, this is similar 0:10:25.160 --> 0:10:28.079 to the reports you heard on EDA software being blocked 0:10:28.160 --> 0:10:30.800 or restricted from China when we were trying to get 0:10:30.800 --> 0:10:35.280 those rare earth and magnet imports turned back on. So 0:10:35.400 --> 0:10:38.360 what I think is happening is you have two big 0:10:38.440 --> 0:10:45.160 Korean memory companies that make memory inside China, and the 0:10:45.320 --> 0:10:48.480 US wants to get leverage in the current ongoing trade 0:10:48.559 --> 0:10:53.560 negotiations with South Korea or maybe other Asian nations who 0:10:53.640 --> 0:10:57.120 would be exposed to these rules, and so they throw 0:10:57.160 --> 0:11:00.320 this out as well, we might restrict the ability to 0:11:00.360 --> 0:11:03.680 get those leading edge tools, which would basically make those 0:11:03.760 --> 0:11:07.320 fabs inefficient. It wouldn't shut them down, but if you 0:11:07.360 --> 0:11:10.719 can't get the best latest equipment, it basically puts you 0:11:10.800 --> 0:11:15.000 at a competitive disadvantage versus companies like Micron, So I 0:11:15.040 --> 0:11:19.560 think it's more posturing and leverage, but it would be 0:11:19.559 --> 0:11:23.000 a real It definitely doesn't help the sentiment across SEMIS. 0:11:23.080 --> 0:11:25.960 And that's to answer your question, because anytime you bring 0:11:26.040 --> 0:11:30.160 up government restrictions in China, it just puts some downward 0:11:30.200 --> 0:11:33.240 pressure on SEMIS. But again, I don't necessarily think this 0:11:33.320 --> 0:11:35.320 is what is going to happen anytime soon. 0:11:35.360 --> 0:11:38.080 It's just a risk, just a risk, but people act 0:11:38.120 --> 0:11:38.720 on those risks. 0:11:38.720 --> 0:11:41.200 And as we see the socks Semi conduct To index 0:11:41.240 --> 0:11:43.319 now trading off by one point seven percent, and it's 0:11:43.360 --> 0:11:46.600 kla it's land research in particular in the headwinds. Can 0:11:46.640 --> 0:11:49.960 you give us a sense of who in despite these 0:11:50.000 --> 0:11:54.200 sorts of environment you just have to allocate to because well, 0:11:54.400 --> 0:11:57.719 the positives just so outweigh. Does it still remain in 0:11:57.840 --> 0:12:00.840 video all cases TSMC at all cases? Are they're more 0:12:00.920 --> 0:12:02.880 nuanced plays to be had, because it feels as though 0:12:02.880 --> 0:12:04.600 we've been ringing that one for a while. 0:12:06.400 --> 0:12:09.280 Well, you mentioned the names that would be most at 0:12:09.400 --> 0:12:15.600 risk would be the equipment company's kla ASML, potentially AMAT 0:12:15.600 --> 0:12:18.360 and LAMB, and those stocks have been going up in 0:12:18.400 --> 0:12:20.720 the face of a lot of concern that the US 0:12:20.840 --> 0:12:24.280 could put further restrictions on those equipment and that those 0:12:24.320 --> 0:12:27.200 tools going into China. So a lot of the people 0:12:27.240 --> 0:12:30.120 I speak to are already cautious on the equipment stocks. 0:12:30.640 --> 0:12:33.640 But what I actually think it definitely really won't impact 0:12:33.800 --> 0:12:39.880 Nvidia in my opinion TSM. Honestly, again, demand exceed supply. 0:12:40.240 --> 0:12:43.400 They're going to do fine. And the other name that 0:12:43.440 --> 0:12:45.520 I would look at, as you mentioned, like who could 0:12:45.520 --> 0:12:50.199 benefit is Micron. So Micron is the other large dram 0:12:50.480 --> 0:12:54.640 nand flash memory supplier, and they don't have big factories 0:12:54.679 --> 0:12:58.439 inside China. They're the only US memory company, so they're 0:12:58.480 --> 0:13:02.600 like our leading champ and we want them to survive 0:13:02.679 --> 0:13:04.920 and do well. And obviously they're going to try to 0:13:04.960 --> 0:13:07.880 move more of their manufacturing into the United States, but 0:13:08.160 --> 0:13:10.480 they would be at an advantage if the US was 0:13:10.559 --> 0:13:14.480 to restrict Samsung and Heinez from getting those needed tools 0:13:14.520 --> 0:13:17.760 in those Chinese facilities. And that's the one that's reporting 0:13:17.840 --> 0:13:19.839 next week. That's the one I think that's going to 0:13:19.920 --> 0:13:24.440 sound super bullish on demand for memory in AI, and 0:13:24.480 --> 0:13:26.440 that's the one I think that could really be the 0:13:26.440 --> 0:13:27.760 surprise upside winner. 0:13:28.760 --> 0:13:32.439 Upside already up twenty eight percent so far. This month 0:13:32.480 --> 0:13:36.000 they came out with real vision for allocating to R 0:13:36.040 --> 0:13:38.600 and D here in America. But last week we'll wait 0:13:38.600 --> 0:13:40.560 for their earnings a little bit later. As you say, 0:13:40.640 --> 0:13:42.800 thank you so much Jordan Klin. Always great to have 0:13:42.880 --> 0:13:46.439 him on from Mazuha coming up as Tesla prepares to 0:13:46.520 --> 0:13:51.400 laun James robotaxi service. Well, the global competition in autonomous 0:13:51.400 --> 0:13:53.079 cab space is heating. 0:13:52.800 --> 0:13:55.080 Up A's next as Bluebertech. 0:14:03.440 --> 0:14:06.560 Chinese technology giant Baidu well it is planning to expand 0:14:06.559 --> 0:14:09.320 its robo taxi service in Singapore and Malaysia as as 0:14:09.360 --> 0:14:12.160 early as this year, according to people familiar with the matter. 0:14:12.240 --> 0:14:15.040 Now the company is in discussions with potential partners in 0:14:15.080 --> 0:14:18.439 the two markets. By news Apollogo, it's about one thousand 0:14:18.679 --> 0:14:21.600 self driving vehicles worldwide, mostly in China. 0:14:21.840 --> 0:14:22.040 Now. 0:14:22.040 --> 0:14:25.120 This newsicalse comes as Elon Musks Tesla prepares to launch 0:14:25.120 --> 0:14:28.320 its robotaxi services in Austin this weekend. Let's get more 0:14:28.320 --> 0:14:31.280 on the autonomous market. Karako comments here with us. She's 0:14:31.320 --> 0:14:33.600 a professor of Civil and Transport engineering over at the 0:14:33.640 --> 0:14:35.040 University of Texas at Austin. 0:14:35.360 --> 0:14:36.720 Her work includes research on the. 0:14:36.640 --> 0:14:39.560 Impact of bringing self driving cars to the roads and 0:14:39.680 --> 0:14:42.680 kara for anyone who is worried about the safety involved here, 0:14:43.160 --> 0:14:45.800 your data shows, look, we should be pursuing this path. 0:14:47.480 --> 0:14:47.720 Yeah. 0:14:47.960 --> 0:14:50.600 So, in an early paper, just looking at the kinds 0:14:50.640 --> 0:14:55.000 of technologies that auto manufacturers already have, we expected about 0:14:55.040 --> 0:14:58.840 an eighty five percent crash reduction and fatality reduction and 0:14:59.200 --> 0:15:02.240 crash cost reduction, which is a lot of money because 0:15:02.280 --> 0:15:05.480 Americans already lose about three thousand dollars a year per 0:15:05.560 --> 0:15:10.280 capita every year to crash costs. And what we've already 0:15:10.280 --> 0:15:13.480 seen is Weimo is hitting that target on the streets 0:15:13.480 --> 0:15:14.920 of San Francisco. 0:15:15.360 --> 0:15:18.040 Phoenix, and an La, where. 0:15:17.840 --> 0:15:20.600 It's been comparing itself to the other drivers that are 0:15:20.600 --> 0:15:22.080 on those exact same streets. 0:15:22.720 --> 0:15:26.480 Of course, cost to vehicle owners, cost of life as well, 0:15:26.600 --> 0:15:28.680 car is something that just everyone is so focused on, 0:15:28.960 --> 0:15:31.560 but there has to be regulation that keeps up. China 0:15:31.640 --> 0:15:33.600 is going at this full speed, so is Asian. We're 0:15:33.640 --> 0:15:36.880 just talking about how bydo is rolling out across Singapore Malaysia. 0:15:37.360 --> 0:15:39.680 Are we keeping pace with how quickly the innovation could 0:15:39.720 --> 0:15:40.840 change here in the US? 0:15:41.880 --> 0:15:44.120 Well, I think so thanks to Tesla, but of course 0:15:44.160 --> 0:15:47.280 they also have a gigafactory in China, and so China 0:15:47.400 --> 0:15:50.320 may have access to all of that intellectual property and 0:15:50.680 --> 0:15:54.160 be able to mimic it quickly to catch up with 0:15:54.720 --> 0:15:57.000 Tesla with a Chinese based company. 0:15:57.680 --> 0:16:00.480 Okay, so thanks to Tesla, thanks to Weimo, thanks Zooks, 0:16:00.480 --> 0:16:02.000 who we had on earlier in the week. There is 0:16:02.040 --> 0:16:04.720 plenty of companies that are showing that it can be done. 0:16:04.920 --> 0:16:07.160 Just remind us of also not the cost implications from 0:16:07.160 --> 0:16:11.680 an insurance perspective, but more broadly, how much easier, how 0:16:11.720 --> 0:16:14.920 much more cost efficient will it be to make these vehicles, 0:16:14.920 --> 0:16:16.960 Because look, zuks is saying it's going to make ten 0:16:17.040 --> 0:16:20.160 thousand in the next few years or so per year 0:16:20.240 --> 0:16:22.920 in their new facility. But all of these means they're 0:16:22.920 --> 0:16:24.880 pretty expensive pieces of equipment as it stands. 0:16:26.080 --> 0:16:30.080 Right so people are estimating that the Waimo vehicles right now, 0:16:30.120 --> 0:16:33.640 which are on a very expensive Jaguar Ipace, which is 0:16:33.680 --> 0:16:36.800 a suggested retail price of seventy five thousand, I think, 0:16:36.840 --> 0:16:39.880 so add another seventy five thousand to get all of 0:16:39.920 --> 0:16:42.440 the lighter and everything else installed. But if you can 0:16:42.560 --> 0:16:45.560 install it all directly on the assembly line in one 0:16:45.600 --> 0:16:48.320 coherent piece, that the cost comes down a bit, and 0:16:48.320 --> 0:16:51.640 of course weimo's not in the business of actually manufacturing 0:16:51.680 --> 0:16:53.880 the vehicles and Tesla is and if you go to 0:16:53.920 --> 0:16:56.800 the Tesla website, I think they're offering the technology for 0:16:56.880 --> 0:17:00.000 eight thousand dollars up front, plus another one hundred dollars 0:17:00.240 --> 0:17:02.920 a month, and so that starts to sound pretty reasonable. 0:17:03.280 --> 0:17:05.440 And we do expect those costs to come down long 0:17:05.560 --> 0:17:09.120 term to maybe under five thousand dollars off the top. 0:17:09.200 --> 0:17:11.600 And if you have to have a monthly check fee 0:17:11.680 --> 0:17:15.200 or something, so they're updating, you know, to new standards 0:17:15.240 --> 0:17:18.119 each month, and there might be another fifty dollars fee 0:17:18.160 --> 0:17:18.720 on top of that. 0:17:18.800 --> 0:17:23.440 I suppose talk to us therefore about how FSD seems 0:17:23.560 --> 0:17:26.440 to work at the moment, because we hear on both 0:17:26.480 --> 0:17:28.679 sides the equation. Many love it, Many feel that it 0:17:28.720 --> 0:17:32.640 is incredibly efficient. Others say there are still so many holes, 0:17:32.680 --> 0:17:35.280 so many ways in which that it underperforms. We cannot 0:17:35.359 --> 0:17:37.639 roll it out yet in the United States. 0:17:38.240 --> 0:17:39.440 Well, it's already out there. 0:17:39.560 --> 0:17:42.479 So a lot of us have friends and neighbors and 0:17:42.560 --> 0:17:45.359 people just alongside us in the traffic stream and you 0:17:45.440 --> 0:17:48.480 may not notice because there is somebody in that driver's seat, 0:17:48.480 --> 0:17:51.199 but they are in FSD mode, and so I believe 0:17:51.240 --> 0:17:56.240 they've driven billions, billions of miles already, whereas the Waymouth 0:17:56.240 --> 0:18:01.119 fleet has gone about sixty million miles of rider only. 0:18:01.200 --> 0:18:02.680 So nobody in the driver's seat. 0:18:02.680 --> 0:18:04.960 And that's the big jump here, is that they're they're 0:18:04.960 --> 0:18:08.840 tweaking the algorithms so that the car will be able 0:18:08.840 --> 0:18:12.760 to move without somebody in that driver's seat and will 0:18:12.760 --> 0:18:15.160 do a lot of the parking, which they're not doing 0:18:15.240 --> 0:18:18.439 right now for the owners of FSD who paid that 0:18:18.480 --> 0:18:21.119 eight thousand dollars plus one hundred dollars a month, and 0:18:21.200 --> 0:18:24.400 of course have to be in that driver's seat legally, 0:18:24.480 --> 0:18:27.000 have to be a licensed driver and have to keep 0:18:27.040 --> 0:18:30.199 their eyes open, you know, much of the time. But 0:18:30.280 --> 0:18:33.119 when I was in that driver's seat, I did nothing. 0:18:33.280 --> 0:18:35.920 It was very precise, It was very impressive on very 0:18:36.440 --> 0:18:40.639 complex network here, the routes that we were taking, but 0:18:40.720 --> 0:18:43.840 it was broad daylight. And the one thing I noticed is, 0:18:43.880 --> 0:18:45.840 you know, it does go above the posted speed limit 0:18:45.880 --> 0:18:48.119 to keep up with the traffic around it, which the 0:18:48.119 --> 0:18:49.320 Waymo vehicles don't do. 0:18:49.680 --> 0:18:51.640 And it also came, you know, a lot. 0:18:51.680 --> 0:18:54.600 It was much more confident around pedestrians and scooters and 0:18:54.640 --> 0:18:58.520 cyclists than I would normally be as a driver myself. 0:18:58.560 --> 0:19:01.040 So that's where I'm a little bit nervous. If somebody 0:19:01.080 --> 0:19:02.520 turns around mid stream. 0:19:02.600 --> 0:19:06.560 You know, you've seen the images of scooters falling in 0:19:06.560 --> 0:19:07.000 front of. 0:19:06.960 --> 0:19:07.320 A way MO. 0:19:07.680 --> 0:19:10.120 That would be tough, So there will be some really 0:19:10.119 --> 0:19:13.640 hard breaking or maneuvering if they're going to avoid those 0:19:13.720 --> 0:19:14.400 kinds of crashes. 0:19:14.440 --> 0:19:16.080 So that's that's something I'd be watching out for. 0:19:16.720 --> 0:19:19.640 And when it comes to well keeping in the speed limit, 0:19:19.680 --> 0:19:21.720 there are some settings you can adjustice there. Kara, We 0:19:21.760 --> 0:19:24.240 thank you Kara Kocheman. She's the professor at the University 0:19:24.320 --> 0:19:33.359 of Texas At Austin. Meta is rolling out new aiglasses 0:19:33.400 --> 0:19:36.840 with Oakley that are targeted to athletes. The new versions, 0:19:36.880 --> 0:19:39.200 which start at three hundred and ninety nine dollars, include 0:19:39.240 --> 0:19:43.360 improved video quality features like water resistance. Man Neat Singh 0:19:43.520 --> 0:19:46.399 are in house athlete and Bloomberg intelligence. 0:19:46.280 --> 0:19:47.919 Writer talks to us a little bit. 0:19:47.960 --> 0:19:49.760 Look it's funny the way the story is written by 0:19:49.800 --> 0:19:51.960 Mark German. He says people are using them also for 0:19:52.000 --> 0:19:54.400 thrill seeking. They're getting on roller coasters and using them. 0:19:54.600 --> 0:19:57.520 Why are these Oakley versions going to be better? 0:19:58.480 --> 0:20:00.480 I mean, it just turns out to be a better 0:20:00.560 --> 0:20:03.200 phone factor. When you think about, you know, the ray 0:20:03.240 --> 0:20:07.840 Bang glasses compared to the VR headset, I would say 0:20:07.920 --> 0:20:11.960 it's a much easier phone factor to use, you know, 0:20:12.080 --> 0:20:15.359 as an AI glass. But at the same time, I 0:20:15.400 --> 0:20:19.760 think they also realized that the VR headset weren't really 0:20:20.119 --> 0:20:25.040 as impressive to use from a gross margin perspective, So 0:20:25.240 --> 0:20:27.720 I think the ray Band glasses and the oak Ley 0:20:27.840 --> 0:20:32.639 glasses probably are better from a gross margin standpoint. And look, 0:20:32.920 --> 0:20:36.000 in the case of Meta, we know they'll be losing 0:20:36.040 --> 0:20:39.280 about twenty billion dollars this year on reality labs, and 0:20:39.320 --> 0:20:42.359 there is no line of sight in terms of when 0:20:42.480 --> 0:20:45.200 this is going to get profitable or you know, when 0:20:45.240 --> 0:20:47.960 the economies of scale will kick in. So from that 0:20:48.040 --> 0:20:51.399 standpoint as well, I think it's a better pivot for 0:20:51.560 --> 0:20:55.360 them to focus on their glasses compared to the VR headset, 0:20:55.400 --> 0:20:59.000 where they were doing all the manufacturing themselves from the 0:20:59.040 --> 0:20:59.560 ground up. 0:21:00.000 --> 0:21:02.520