Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a
Speaker 1: live from coast to coast with Caroline Hide in New
Speaker 1: York and v Lo Loow in San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: Taiwan, weihs some of its toughest restrictions yet on AI
Speaker 3: chip sales to China. Will have the details plus the
Speaker 3: AIIPO raise. It heats up with Open Ai joining its
Speaker 3: rivals with plans for a potential public listing later this year.
Speaker 3: And Apple lays the foundation for the AI era, but
Speaker 3: how soon will it come? As it hints that the
Speaker 3: company's upcoming faudaal iPhone is on deck. But first I
Speaker 3: check on those markets. We're off by eight ten percent.
Speaker 3: We have been optimistic to start trade and then suddenly
Speaker 3: we've turned quite a leg lower into negative territory. And
Speaker 3: it is tech chip stocks in particular the dragoslower, but
Speaker 3: it's also the key player that is Apple, key player
Speaker 3: that is in Vidia that drag us down. From our
Speaker 3: points perspective, I shine light what was happening in terms
Speaker 3: of hardware. The Philly Semiconductor Index, the socks as we
Speaker 3: call it, one point eight percent lower on the day
Speaker 3: after having reprieved some of the Friday sell off. Yesterday's
Speaker 3: trade Apple off again, the Juggernaut off by two point
Speaker 3: seven percent. That's important in terms of points. It's important
Speaker 3: to the overall index, and it drags the S and
Speaker 3: P five hundred lower as well as one of those
Speaker 3: some anxiety as to when really we will get Siri
Speaker 3: AI in our hands. But first we also talk Taiwan
Speaker 3: and it is weighing some of its toughest restrictions yet
Speaker 3: on AI chip sales to China, a move we'll bring
Speaker 3: it closer in line with Washington and mid mounting US
Speaker 3: concern over technology leakage and national security. For more and
Speaker 3: what it means for the AI race and the US
Speaker 3: China tech tensions. We're joined by Blue Meg's global tech editor,
Speaker 3: Peter Elstrom.
Speaker 2: Is it significant this move?
Speaker 4: It's certainly significant. The most sophisticated chips in the world
Speaker 4: are made in Taiwan by TSMC. Of course, in what
Speaker 4: we understand from our source is that the Taiwanese government
Speaker 4: is now weighing these restrictions on making it a crime
Speaker 4: to export advanced AI chips to China. Now, as you mentioned,
Speaker 4: this is in line with US restrictions already, where in
Speaker 4: Nvidia can't sell its most advanced AI chips to China,
Speaker 4: for example. But why is this important for Taiwan. It
Speaker 4: is because they hold that place as the manufacturer of
Speaker 4: these key chips. But also Taiwanese authorities will be able
Speaker 4: to use more tools to be able to enforce these
Speaker 4: restrictions within Taiwan. They did detain their first person because
Speaker 4: of these export restrictions a while ago, but they had
Speaker 4: to do it because of falsifying documents, not because it's
Speaker 4: a crime right now to smuggle chips out of the country.
Speaker 4: So it gives them a few more tools to be
Speaker 4: able to enforce these restrictions. It's a sign that President
Speaker 4: LII there in Taiwan is taking a much harder line
Speaker 4: against China.
Speaker 3: And what does that mean from relationships between the US
Speaker 3: and China. What does that mean in terms of Montbelio's
Speaker 3: conversation coming from the leadership in China against Taiwan.
Speaker 4: Well, you're alluding to the complex city of the situation,
Speaker 4: and we just saw President Trump go and visit Shi
Speaker 4: in China. They talked about these very issues. There was
Speaker 4: a lot of discussion about many different things, including trade
Speaker 4: and technology in particular. So it's a moving playing field
Speaker 4: at this point. And the Trump administration has signaled that
Speaker 4: it would allow Nvidia to sell the H two hundred chips,
Speaker 4: for example, into China. China is ensure that it wants that.
Speaker 4: It's very you know, they also would like to develop
Speaker 4: their own domestic semiconductor industry. They want to support Huawei
Speaker 4: and other companies like that that are trying to build
Speaker 4: in this area. So it's a complicated task. It certainly
Speaker 4: does mean that there are tensions that remain between the
Speaker 4: two countries when it comes to these kinds of technologies,
Speaker 4: and there's not a resolution in the near future.
Speaker 3: We just saw in fact, China preparing two trillion and
Speaker 3: one of spending to really focus on its own domestic
Speaker 3: AI build out, whether that be data centers. In many ways,
Speaker 3: that's going to be a focus on its own chips.
Speaker 3: But b to we also got that sort of interesting
Speaker 3: news that the Pentagon is really once again reamping some
Speaker 3: of the concerns about Chinese companies, tech companies in their
Speaker 3: relationship with the military. All of the spells that that
Speaker 3: antagonism just remains.
Speaker 4: Yeah, the first story you mentioned is a very important
Speaker 4: one again a people familiar story that we wrote about
Speaker 4: how China is weighing this plan to invest two trillion
Speaker 4: one roughly three hundred billion dollars into data centers in
Speaker 4: the country. This is kind of the missing piece in
Speaker 4: the Chinese AI industry at this point, as we saw
Speaker 4: with deep seak Ali Baba's work with Gwen in particular.
Speaker 4: They've been quite successful at developing advanced models, but they've
Speaker 4: made nowhere near the kinds of investments in infrastructure and
Speaker 4: data centers that we've seen in the US. And now
Speaker 4: three hundred billion dollars works out to about sixty billion
Speaker 4: dollars a year over five years. It's not nearly as
Speaker 4: much as the four hyperscalers are spending. They're aiming for
Speaker 4: seven hundred and twenty five billion dollars this year, so
Speaker 4: it's sort of a ten to one ratio. But these
Speaker 4: data centers are much less expensive in China, and it's
Speaker 4: a sign that they're going to compete on this infrastructure
Speaker 4: level as well as the model level, So that's a
Speaker 4: big step for them.
Speaker 3: Fascinating play most Peter Elstrom, where the rap of all
Speaker 3: that is your news.
Speaker 2: We so appreciate it now as.
Speaker 3: AI becomes increasingly tied to both geopolitics, but investment strategy
Speaker 3: messas are looking beyond the initial infrastructure build out potentially
Speaker 3: and actually applications of AI. Let's discuss that with LATU
Speaker 3: Alliance spend seen head of thematic equities who sees AI
Speaker 3: adoption drawning as the focus shifts to long term competitive positioning.
Speaker 3: So at this moment, just to bring in the US
Speaker 3: and China perspective, how competitive is the US and the
Speaker 3: buildout of AI data centers, They're like, how solid is
Speaker 3: the supply chain if we're worried about US China relationships
Speaker 3: and what it means for Taiwan.
Speaker 5: Yes, I think supply chain is important, but if you
Speaker 5: think about US holistically, I do think a lot of
Speaker 5: leading edge technology comes out of US. And if you
Speaker 5: look at the US companies, the tech giants, when you
Speaker 5: look at the billions and hundreds of billions solid they're spending,
Speaker 5: they're actually quite strategic about it, and the pace of
Speaker 5: innovation and the innovation in the architecture itself is actually
Speaker 5: picking up pretty rapidly. So think about them. They're thinking
Speaker 5: about the cost protoken holistically, and more and more companies
Speaker 5: maybe are taking that holistic view and be more vertically
Speaker 5: integrated and then think about whether it be Google introduces
Speaker 5: proprietory chips, etc. So they are thinking about different architectures,
Speaker 5: how to lower the cost protoken, so that set them
Speaker 5: ahead in terms of competitive advantage. So because all the
Speaker 5: hyperscalers are all competing in it, and in a way
Speaker 5: it's an arms race, and that everybody wants to get
Speaker 5: ahead because that actually goes well for their long term
Speaker 5: competitive vantage and long term margin. So because the competition
Speaker 5: is so high that we do think the US at
Speaker 5: this moment when you look at architecture, certainly US is
Speaker 5: quite ahead of most people in the world.
Speaker 3: I think that vertical integration is being so clearly demonstrated
Speaker 3: by SpaceX at the moment that Elomusk is deciding, yes,
Speaker 3: I'm a space giant, I'm an AI giant, but also
Speaker 3: I'm a data center giant, and actually I'm selling some
Speaker 3: of my compute to the likes of Alphabet and Google
Speaker 3: or indeed anthropic.
Speaker 2: Is that the.
Speaker 3: Way in which you would like to see companies thinking
Speaker 3: themselves in a more vertically integrated manner, or do you
Speaker 3: want to see more specific applications of AI is that
Speaker 3: also attracted.
Speaker 5: I think it's both. Actually it's at this point of
Speaker 5: the cycle, it's certainly important to see more applications come out.
Speaker 5: But if we look back historically, it's actually quite interesting
Speaker 5: vertical integration and that type of cost atdvantage is very
Speaker 5: hard to replicate, and in this very compute intensive and
Speaker 5: capital intensive cycle, I think vertical integration is something that's
Speaker 5: very interesting to worth that's worth considering from an investment's perspective.
Speaker 5: But that said, if you look in the past cycle,
Speaker 5: what happened is we build a massive comp infrastructure and
Speaker 5: then the entire ecosystem that's capitalized ultimately monetized, and that's
Speaker 5: created the tech giants as we know today. So it's
Speaker 5: probably too early to tell, but I certainly think vertical
Speaker 5: integration seems to be a direction that a lot of
Speaker 5: these companies are considering and we're watching very closely.
Speaker 2: It could be quite interesting.
Speaker 3: Are you feeling comfortable with the capex still of a
Speaker 3: lot of these large companies and the industry writ large.
Speaker 5: I think this year we always thought that it was
Speaker 5: going to be this has to be the year of
Speaker 5: AI adoption and the fact that token is being utilized
Speaker 5: and adopted as such, a rapid pace is certainly a
Speaker 5: good sign that AI is being adopted, it's being used,
Speaker 5: So that makes us feel better about the amount of
Speaker 5: capex that's going into it, because ultimately we do want
Speaker 5: to spend and build a road to somewhere, and seeing
Speaker 5: the early signs of rapid adoption is certainly very very encouraging.
Speaker 3: You're all about themes, You're all about long term perspectives
Speaker 3: and not single names.
Speaker 2: But at this point, is there going to be better.
Speaker 3: Entry points to the market? Does it worry you quiv
Speaker 3: you calls for ants that just how high we are
Speaker 3: in general trading on big benchmarks, at big private market valuations,
Speaker 3: big public market valuations.
Speaker 5: I think that all companies are created equal, and I
Speaker 5: think we have to look at the company really one
Speaker 5: by one in terms of we really have to look out.
Speaker 5: And I think historically when we look back, sometimes the
Speaker 5: consensus street estimates they get it right the near term,
Speaker 5: but they miss the long term. And it's the long
Speaker 5: term that gets revised up and up that ultimately determines
Speaker 5: how much a stock should be valued today. So in
Speaker 5: a way, to look out actually allows you to make
Speaker 5: more money near term. So it's really about long term
Speaker 5: total addressable market and more importantly, the ability to hold
Speaker 5: your margin and get the long term profit. That's what
Speaker 5: ultimately determines whether a stock is valued fairly today.
Speaker 2: Thanks you, We love having you on the show.
Speaker 3: Thank you for joining us of Alliance Bernstein there. Meanwhile,
Speaker 3: coming up, open Ai does indeed join its AI rivals
Speaker 3: and the race of potential.
Speaker 2: Go public will have the details on that. S one
Speaker 2: as a Bloombg Tech.
Speaker 3: So open Ai has joined the AI rivals with plans
Speaker 3: for a public listing potentially later this year. The chatchypt
Speaker 3: make confidentially filed it's S one or the SEC, but
Speaker 3: it said the timing of an IPO hasn't been decided
Speaker 3: because there were still things it wants to do as
Speaker 3: a private company. Bloomberg's AI reporter Shurigafari joins us with
Speaker 3: a details.
Speaker 2: So what would those things potentially be?
Speaker 3: Why make it still unclear if they're going to come
Speaker 3: as soon as the fall?
Speaker 6: Yeah, the company said, this is really about optionality for them.
Speaker 6: Of course, there are a lot of factors when a
Speaker 6: company's deciding to go public. There's the market, how they
Speaker 6: stack up to their competitors, So these could all be reasons,
Speaker 6: right that a company has in mind when they're thinking
Speaker 6: about the exact timing of going forward with the filing.
Speaker 3: Forward with the fine, and going forward with the next
Speaker 3: phase of open AI.
Speaker 2: I thought it was really interesting the same.
Speaker 3: Time as we learn that they've filed an S one confidentially,
Speaker 3: they're also putting out a statement about the control of AI,
Speaker 3: about aligning it with humanity that was coming from Sam
Speaker 3: Altman and the chief scientist.
Speaker 2: What did you make of the blog? That's right?
Speaker 6: You know, there's been a lot of talk lately in
Speaker 6: the AI world about the idea of self improving AI.
Speaker 6: That these AI models are getting so good that researchers
Speaker 6: at the top labs are actually using them to program.
Speaker 2: The next model, and.
Speaker 6: That's caused both excitement but a lot of anxiety. We
Speaker 6: actually saw Inimthropic last week come out with a blog
Speaker 6: post even calling for a potential pause if this turns
Speaker 6: out to really be the case that these models are
Speaker 6: sort of improving so quickly and getting out of control.
Speaker 6: So I think, you know, Altman's post is in a
Speaker 6: way in conversation with that and acknowledging this idea that
Speaker 6: the AI is starting to automate itself and weighing some
Speaker 6: of both the opportunities it also risks there.
Speaker 3: And I think that's so interesting that, of course, again
Speaker 3: just by outlining that blog post, we're thinking about anthropic
Speaker 3: timing open AI timing. One puts a blog, the next
Speaker 3: pet's a blog. One's gone file confidentially the next one has.
Speaker 3: How much is their anticipation, how much is their worry
Speaker 3: that they're coming in the same sort of time.
Speaker 6: It does feel like a race on every level right
Speaker 6: now between these two sort of top AI firms, both
Speaker 6: at the technological level, with them releasing a new model
Speaker 6: sort of neck and neck every few months now even
Speaker 6: every few weeks, on the sort of ideological level about
Speaker 6: the direction that they're going to go in balancing the
Speaker 6: risks and the benefits, as well as just this IPO timeline.
Speaker 6: So I think it's one of the closest races certainly
Speaker 6: that I've ever covered in the tech industry, and extremely
Speaker 6: competitive right now on every level.
Speaker 3: And you cover it brilliantly, Thank you, Bloomberg Sharing KAfari
Speaker 3: on all things open ai. And let's stick with that
Speaker 3: IPO pipeline. The AI names that we've just talked about.
Speaker 3: If you add in SpaceX, that's three point six trillion
Speaker 3: dollars a market cap that might be coming to the
Speaker 3: market in the next few months. But according to Pitchbook research,
Speaker 3: open ai may end up being the most expensive bet.
Speaker 3: Harrison roll first is with us senior analyst of Pitchbook's
Speaker 3: private company coverage joining us. Now, look, we can't see
Speaker 3: the detail of the revenues and the numbers that's been
Speaker 3: filed confidentially with the SEC. But you take a great
Speaker 3: crack at it with an eye on open ai, your
Speaker 3: late stage company research, and you think that open ai
Speaker 3: is expensive in some of your frameworks. Can you talk
Speaker 3: us through at Harrison?
Speaker 7: Well, yeah, so open aiy has essentially built the most
Speaker 7: widely used AI product in history, but they rely on
Speaker 7: so much capital intensive compute that their profits aren't necessarily
Speaker 7: going to cover their costs. So when looking at open ai,
Speaker 7: we want to see their Microsoft terms, we want to
Speaker 7: see how their accounting works. We want to see how
Speaker 7: their enterprise revenue as a share total and their net
Speaker 7: revenue retention, the annual compute obligation, and the related party
Speaker 7: disclosed to really figure out exactly where they stand. As
Speaker 7: a true business as opposed to the hype that's surrounding them.
Speaker 7: The framework that I've created, this AI business quality essentially
Speaker 7: looks at opening eye on five different dimensions. Is revenue quality,
Speaker 7: computing independence, remote durability, governance, optionality, as well as just
Speaker 7: capital efficiency. When you look at a company who really
Speaker 7: doesn't who really has a strong AI mind share, but
Speaker 7: isn't focusing on the true business qualities that make a
Speaker 7: business successful in the public markets, it's it's something hard
Speaker 7: to evaluate right now, and that's why they score the
Speaker 7: lowest on my scoring system.
Speaker 2: And four point eight b one of the highest valuations
Speaker 2: four point.
Speaker 3: Eight out of ten on aib key AIBQ framework.
Speaker 2: Now I'm interested in that sort of other.
Speaker 3: Parties perspective because the Microsoft relationship is one that you
Speaker 3: drill down on and perhaps some of that revenue sharing
Speaker 3: is something investors should really be thinking about.
Speaker 7: Absolutely, the Microsoft share aspect is very unique.
Speaker 8: By capping how.
Speaker 7: Much they oh Microsoft, it frees up some sort of revenue. However,
Speaker 7: it's still unsure about what's going to happen after twenty thirty,
Speaker 7: and that uncertainty is going to make it very hard
Speaker 7: for investors to look past twenty thirty and see if
Speaker 7: they're going to succeed until.
Speaker 3: Then, can you talk a little bit about what you
Speaker 3: anticipate for governance structures coming from these companies. We're going
Speaker 3: to dig into it in a bit at the end
Speaker 3: of the show about questions people have about SpaceX's governance
Speaker 3: and the control muscaz how much you're starting to see
Speaker 3: how much control might be.
Speaker 2: Had by open Ai.
Speaker 3: For example, samum and we understand doesn't own any significant
Speaker 3: portion of equity.
Speaker 7: No, he's interesting from going from a nonprofit to this
Speaker 7: just new PBC structures. He's essentially trying to find a
Speaker 7: way to be the good guy. But at the same
Speaker 7: time he's already dealt with such backlash from his from
Speaker 7: the board and other parties involved in other investors where
Speaker 7: they are even unsure whether or not they want.
Speaker 8: To deal with this sort of these sort of issues.
Speaker 7: However, Sam Alvins still finds a way to make it happen,
Speaker 7: and now people are really relying and betting on his
Speaker 7: future and his aspirations to bring Open the Eye to.
Speaker 3: Number one, number one in a race we keep talking about.
Speaker 3: It is feeling like some sort of race, but it
Speaker 3: is about mind share. It is about oxygen in the room,
Speaker 3: but it is about money that's going to be able
Speaker 3: to be allocated to these companies when they go public.
Speaker 3: Is there a worry that they file confidentially lost and
Speaker 3: we're getting SpaceX as soon as this week.
Speaker 7: I think by filing last actually gives open Ad opportunity
Speaker 7: to learn from their competitors. Opening I can actually see
Speaker 7: where Anthropic is going wrong, exactly how they can adjust
Speaker 7: the gorong.
Speaker 2: Where are they going wrong?
Speaker 7: You know, Opening I could be going wrong with their
Speaker 7: gross margins. They don't really break down exactly the tier
Speaker 7: and the compute costs associated to it, and we'll really
Speaker 7: get a sense of the hyperscalar involvement with Opening Eye
Speaker 7: and just the overall reliance on them to take them
Speaker 7: to the next step. And then in relation to SpaceX,
Speaker 7: we're going to get a sliver of the AI aspect
Speaker 7: from XAI. However, that's not going to tell us enough
Speaker 7: of what it takes to be a leading frontier AI model.
Speaker 7: So the public markets are going to be the ones
Speaker 7: to determine how much it truly costs to run an
Speaker 7: AI business. And they have SpaceX as a somewhat of
Speaker 7: a comparison, even though they're they're a space company.
Speaker 3: Harrison wilfirs a pitch book. Thanks for bringing the analysis.
Speaker 3: We appreciate it. Coming up, Apple and bails a series
Speaker 3: of updates at WWDC, but says it isn't able to
Speaker 3: launch them in the EU due to a standoff with
Speaker 3: the blocks anti trust watchdock more on that.
Speaker 2: Next, this is Blomberg Tech.
Speaker 3: Apple used its Worldwide Developers Conference yesterday to lay the
Speaker 3: foundation for the AI era, unveiling a range of products
Speaker 3: including iOS twenty seven SIRIAI. Within that the company still
Speaker 3: has to overcome, though investor skepticism about this AI strategy.
Speaker 3: Bloomberg's Mark German joins us now with more details.
Speaker 2: Look, the skepticism is there.
Speaker 3: If you're looking at the share price, we're down again.
Speaker 3: It traded lower yesterday. Is there some anxiety about the
Speaker 3: pace at which SIRIAI will be unfolded?
Speaker 2: To us?
Speaker 8: All?
Speaker 9: Yeah, thank you for having me. Well, there are concerns
Speaker 9: about the pace of you. They said that it'll launch
Speaker 9: in English later this year. But Serie AI is real.
Speaker 9: If you're on the developer beta. If you're not me,
Speaker 9: I guess you're able to get off the wait lists
Speaker 9: and try these new serie features out. I think the
Speaker 9: response has been mostly positive at this point. As I
Speaker 9: said before the event, what Apple's doing here is they're
Speaker 9: going from completely subpar to completely adequate. We're not seeing
Speaker 9: Wizbang AI features that you're right now seeing from Google,
Speaker 9: Open Ai and Thropic per se, but you're seeing Siri work.
Speaker 9: And so Apple was finally able to do was take
Speaker 9: something that has so much promise for over a decade
Speaker 9: and finally make it work by recreating their underlying models,
Speaker 9: using technology from Google Gemini, using some new AI under
Speaker 9: the hood techniques, and actually presenting users with something they
Speaker 9: think they're going to be able to use on a
Speaker 9: daily basis. And so the concerns that should be out
Speaker 9: there really are what happens to Chat, GPT and Thropic
Speaker 9: on the Apple platform because a lot of people now
Speaker 9: are going to have a real LLM built in, and what.
Speaker 3: Happens to other rivals, maybe even Meta AI. Look, what's
Speaker 3: interesting is, as we've been speaking, there's been some breaking
Speaker 3: news that Meta Platform has been ordered by the EU
Speaker 3: to temporarily help policies that allegedly block AI firms from
Speaker 3: operating on the WhatsApp messaging service for businesses.
Speaker 2: This is the EU once.
Speaker 3: Again basically saying you need to make everything available to
Speaker 3: all your rivals at all times. This is something Apple's
Speaker 3: spoken about. They were sort of munslinging with the EU
Speaker 3: earlier today about whether Siri AI is going to get
Speaker 3: to the EU users slower and whether it's Apple's fault
Speaker 3: or the EU's fault.
Speaker 9: Yeah, I mean, you've seen other features be held back
Speaker 9: due to the negotiations between Apple and the EU, iPhone
Speaker 9: mirroring being one of them. There were a few other
Speaker 9: features on the operating systems last year, apple Intelligence being
Speaker 9: one of them that eventually expanded to the European Union.
Speaker 9: So I'm confident this will eventually work out. But yeah,
Speaker 9: you're seeing a public war of words play out between
Speaker 9: Apple and the EU right now, and we have to
Speaker 9: just see who's going to fold first. These are two
Speaker 9: big entities, two big personalities, and Apple rightfully so does
Speaker 9: not like the way that the EU is inserting themselves
Speaker 9: into product development and the way features need to be
Speaker 9: introduced and implemented, and quite frankly, as a consumer, I'm
Speaker 9: not in the EU, but I do feel bad for
Speaker 9: my friends in the EU and my developer friends in
Speaker 9: the EU who are not able to roll out the
Speaker 9: newest features to their customers and if they are a customer,
Speaker 9: not being able to use the newest feature because these
Speaker 9: rules are in place. So I don't actually think what
Speaker 9: the EU is doing is a positive at all.
Speaker 3: Fold first, bring any hint to for foldable phone quickly?
Speaker 9: Yeah, the foldable phone is coming in September. We've been
Speaker 9: talking about this for a while in iOS twenty seven
Speaker 9: is chalk full of hints to this. So really looking
Speaker 9: forward to this launch. Big deal for Apple, and I
Speaker 9: think this is going to be a really product. This
Speaker 9: is one that I've been looking forward to for a
Speaker 9: while and.
Speaker 3: The one that you brought us news on for a
Speaker 3: very long time, always first putting my Mark German.
Speaker 2: We so appreciate it. Thank you now.
Speaker 3: Meanwhile, Apple is also expanding its child's safety tools as
Speaker 3: a governments around the world increasingly clamped down on youth
Speaker 3: social media usage. No our features unveiled yesterday at WWDC
Speaker 3: will hand parents much tighter control this full allowing them
Speaker 3: to better control on devices when kids use the apps,
Speaker 3: what content they can access, and with whom they can communicate.
Speaker 2: Now coming up. We'll come back on open ais S.
Speaker 3: One filing discuss the AI ibo landscape. Nun of Principal
Speaker 3: Venture Partners. This is Bloomberg Tech. Welcome back to Bloomberg Tech.
Speaker 3: We are seeing a rollover in stocks. We started trading
Speaker 3: higher on the day and that optimism has since faded
Speaker 3: and faded hard for the tech names. In particular, if
Speaker 3: you look out of the hood of the SP five hundred,
Speaker 3: it's far healthier and more stocks are in the green.
Speaker 2: And that's that one hundred they were off by more
Speaker 2: than two percent.
Speaker 3: Is Apple, Micron, Nvidia, AMD, some of the chip hardware
Speaker 3: names that really tug from a points perspective. And this
Speaker 3: is a companies Well Banks and Bank of America for example,
Speaker 3: saying there are too many red flags right now to
Speaker 3: take profits, and people all are doing that. Maybe they're
Speaker 3: getting some dry powder ahead of some massive IPOs. Let's
Speaker 3: take a look at today's big number, three point six
Speaker 3: trillion dollars.
Speaker 2: That's a total market cap and.
Speaker 3: The three big upcoming IPOs if indeed they do come
Speaker 3: open AI getting itself, Optionality and Thropic too. They filed
Speaker 3: confidentially with the SEC but SpaceX that's on deck for
Speaker 3: this week. This is these AI companies are rasing. They're
Speaker 3: raising tens of billions of dollars to buy chips, data
Speaker 3: centers build more advanced AI systems. But look historically megacap IPOs,
Speaker 3: they have a rocky start in the first few months
Speaker 3: a traine look. Stocks often slump in the first year.
Speaker 3: Could these upcoming listings be big enough? That just doesn't
Speaker 3: really apply here. The rules are off discussed of blumagetquitary
Speaker 3: report to common Rhyinikey who's trying to with an unprecedented
Speaker 3: IPO at the end of this week, trying to see
Speaker 3: there's any historical precedent here.
Speaker 2: You go back to some truist found data.
Speaker 3: Thirty mega tech IPOs compared to SpaceX, how have they
Speaker 3: performed in the last fifteen years?
Speaker 10: So the majority of them after one year of trading
Speaker 10: have been down. They've slumped a little bit in that
Speaker 10: first year of trading, but overall the entire group has
Speaker 10: a maximum draw down or sorry, an average draw down
Speaker 10: of fifty five percent in that first year of trading,
Speaker 10: which is really incredible if you think about it. That's
Speaker 10: a huge amount of money one rushing into these stocks
Speaker 10: and then coming out as investors sort of assess all
Speaker 10: the information that they're getting as you know, lockups expire
Speaker 10: and more shares come online. So this it could be different.
Speaker 10: It's such a huge IPO, and we know there's so
Speaker 10: much hype that retail investors are being focused on in
Speaker 10: you know, SpaceX coming to the public market and that
Speaker 10: people are excited they really want to buy into this.
Speaker 10: So we could see something different happen here.
Speaker 2: I mean, maybe there's a silver lining.
Speaker 3: If you end up feeling that you haven't got the
Speaker 3: access that you wanted and you're forced to weight, maybe
Speaker 3: there's a better entry point. Look, we're looking particularly at
Speaker 3: a story of the core Weave founders. They've understandably sold
Speaker 3: two point three billion dollars in stock since the IPO.
Speaker 3: Is that the sort of supply side weight that you
Speaker 3: get on these new company public companies?
Speaker 2: It definitely is.
Speaker 10: And Corewave was really a poster child for extreme volatility
Speaker 10: of the year after its IPO. You know, kind of
Speaker 10: just hit that thresholding in March and it was up
Speaker 10: you know, four hundred percent at one point, and then
Speaker 10: it had a draw down of sixty five percent from
Speaker 10: that point, and we saw Magnetar offload half of its
Speaker 10: position and these insiders sell. I mean, the stock is
Speaker 10: still up more than one hundred and fifty percent from
Speaker 10: its IPO price, but you do see these kinds of pressures.
Speaker 10: They've also had some earnings reports that investors bulked at.
Speaker 10: So all of these catalysts really add up to choppiness
Speaker 10: in the first year as the market kind of assesses
Speaker 10: where the valuation is going to be going forward. And
Speaker 10: I think that's something that people are looking at with
Speaker 10: SpaceX as well. If you look at price to sales,
Speaker 10: it's not profitable yet it's a really high evaluation. That's
Speaker 10: something people have been looking at in the you know,
Speaker 10: AI and the tech in the space space over archingly,
Speaker 10: so investors might want to wait for a better entry point.
Speaker 2: Then, like timelines for everything.
Speaker 3: You shine a light on Tesla for example, and Facebook,
Speaker 3: which of course is now known as Meta. Meta had
Speaker 3: like a really torrid first year, down thirty percent, and
Speaker 3: now it's up fourteen hundred percent to c the IPO.
Speaker 2: And if you look back to Tesla, what up twenty
Speaker 2: five thousand percent? Says Listening exactly.
Speaker 10: So that's kind of the catch twenty two here. You know,
Speaker 10: do you want to try to buy in on the
Speaker 10: first day where you could see a huge pop right
Speaker 10: and then maybe you're buying at a more expensive price,
Speaker 10: or do you want to wait and see what happens
Speaker 10: over Archingly, it seems like if you're a longer term investor,
Speaker 10: the data show that these IPOs do really well.
Speaker 4: Right.
Speaker 10: These stocks have gone up astronomically, So it's just all
Speaker 10: about finding that right entry point, finding that right time,
Speaker 10: that time horizon and when they get.
Speaker 3: In and how much business models evolve, and how much
Speaker 3: we have to understand about these business models as they
Speaker 3: go public. With the most common rhinikey, it's a fantastic story.
Speaker 2: Go read it. Let's discuss this and.
Speaker 3: More now with Songy, you founder managing partner prince All
Speaker 3: Ventures Partners. It's a Silicon Valley based early stage venture
Speaker 3: firm focused on AI native companies. But why you're so interesting,
Speaker 3: song Ya, is also because you serve on the advisory
Speaker 3: Council of the Institute for Human Centered AI at Stanford University.
Speaker 3: You've been an operator at been gaming.
Speaker 2: Companies and tech Sony.
Speaker 3: The business models were about to get our heads wrapped
Speaker 3: around in the public market. Should we be as excited
Speaker 3: about them as we are with SpaceX, with Anthropic, with
Speaker 3: open AI.
Speaker 11: Yeah, I think this is a really tremendous moment. If
Speaker 11: you think about the total market cap that we're talking about,
Speaker 11: it constitutes about ten percent of the NASTAC And we
Speaker 11: are already talk about how concentrated NaSTA market is with
Speaker 11: those like big top ten companies taking about more than
Speaker 11: forty percent of the total market caap. Adding this to
Speaker 11: on top of it make the magnastic even much more
Speaker 11: concentrated and expose the risk of the volatility and kind
Speaker 11: of circular circular risk of the of the technology in
Speaker 11: the market.
Speaker 3: How much is there an anxiety that not only they're
Speaker 3: going to be an outsized waiting in well just passive
Speaker 3: funds more broadly, but they're also all related to.
Speaker 2: One another in some way.
Speaker 3: The fact that anthropics buy and compute of SpaceX, the
Speaker 3: fact that we're starting to see this circular deal making
Speaker 3: come ever more present into the public market.
Speaker 2: That's right.
Speaker 11: I mean, that's that's one of the reasons why people
Speaker 11: kind of point out and there is some kind of
Speaker 11: the bubble element in kind of today's AI market a marketplace.
Speaker 11: And in addition to that, I think It's another thing
Speaker 11: to think about is that technology is kind of at
Speaker 11: its innacent stage. A lot of the technology, I mean,
Speaker 11: this AAIs is a real technology, and it was in
Speaker 11: the phase of tech demonstration that we have seen tremendous potential.
Speaker 11: But it by no means that in terms of engineering
Speaker 11: they need to go into it for optimizing and making
Speaker 11: them bring it down to the right price point and
Speaker 11: et cetera. There's a lot of work to be done.
Speaker 11: So in terms of the kind of technology and infrastructure
Speaker 11: and how it's formed, it's not near. It's kind of
Speaker 11: the end state, and there's a lot of the improvement
Speaker 11: to be done. And I think that the improvement could
Speaker 11: be current big giants or it could be come from
Speaker 11: the other stars they're working on solving the specific problems.
Speaker 11: So there is a lot of innovation too to be.
Speaker 8: Ahead.
Speaker 11: And I think it's a that's an interesting moment because
Speaker 11: another another thing to think about is that this kind
Speaker 11: of the access to the capital and be building this
Speaker 11: capital mode around the company has become part of the
Speaker 11: feature of the of their service and and and their business.
Speaker 11: And I think there's a lot of kind of the
Speaker 11: circle deals that you mentioned, and it's kind of creating
Speaker 11: this the mode against a new entrance, and I think
Speaker 11: that that's kind of one of the reasons why that
Speaker 11: there is a rush into this like IPO and access
Speaker 11: to large sum of capital.
Speaker 3: I mean, you're a previously a member of South Korea's
Speaker 3: Presidential Advisory Council and Science and Technology. I mean, this
Speaker 3: AI exuberance and hype hasn't just been US alone. We've
Speaker 3: seen extraordinary growth of South Korean stocks Skhenex, and they're like,
Speaker 3: is this a global moment of reckoning? Do you think
Speaker 3: that there is a so called bubble and it needs.
Speaker 2: To come down?
Speaker 11: I mean, I think it's an AI is an interesting,
Speaker 11: interesting technology because as soon as we say like artificial intelligence,
Speaker 11: the name is solved, really kind of sparkles imagination of a
Speaker 11: lot of people, and people tend to entthromorphize like what
Speaker 11: AI can do. And I think that also feels into
Speaker 11: this kind of that the hype behavior and like over
Speaker 11: expectation and extrapolating what this technology can do, because I mean,
Speaker 11: I think that because of the global dominance of the
Speaker 11: US tech market tech companies over the past decades, I
Speaker 11: think the growth of this giant AI company is affecting
Speaker 11: the supply chain outside of the US, and like I
Speaker 11: mean conductor companies, infrastrcure companies not just in the US,
Speaker 11: but elsewhere, and I think that's also beeding into the
Speaker 11: other markets. Excitement.
Speaker 3: I mean you see innovation at public level sitting on
Speaker 3: the board of HP. At the private level, when you're
Speaker 3: investing for principal ventures partners, where is exciting and where
Speaker 3: do you think is undervalued right now? If you're going
Speaker 3: to be putting capital to work privately.
Speaker 11: I mean, there's a lot of innovation to be made.
Speaker 11: I think it's so if you think about airline industry, right,
Speaker 11: I mean, I think there are only a small number
Speaker 11: of companies that can make engine, But if you think
Speaker 11: about where all the business happening is taking place, there
Speaker 11: are companies that are making airplanes, that are making kind
Speaker 11: of they're operating airlines, and there are a lot of
Speaker 11: businesses hospital around it. So I think it's a we
Speaker 11: have we have found this like kind of tremendous engine
Speaker 11: technology they can they can that has a potential to
Speaker 11: build whole new businesses and open up the whole new possibilities.
Speaker 11: But like a lot there are a lot of businesses
Speaker 11: and applications to be built on top of that, and
Speaker 11: where the where the more values and there created, where
Speaker 11: the value is going to be captured and held? I
Speaker 11: think it's yet to be determined.
Speaker 3: Fascinating, Songy and you Princeiviple Ventures partners, thank you forking
Speaker 3: us through your thinking.
Speaker 2: We hope to welcome back soon. Meanwhile, Elon Musk has.
Speaker 3: Unveiled a more detailed look at an initial version of
Speaker 3: an AI data center satellite SpaceX plans to build that
Speaker 3: as part of a roughly one million satellite network, but
Speaker 3: we'll do complex computing four AI in Earth orbit in space.
Speaker 3: So during a thirty minute video shared on x must
Speaker 3: really laid out other plans for the future of this company,
Speaker 3: including the continued development of its Starship rocket and joint
Speaker 3: terrified facility with Tesla that aims to manufacture computer chips
Speaker 3: in the United States. Coming up, well, we got more
Speaker 3: on AI and this time it's all about robotics. The
Speaker 3: company Standard Boss just raising two hundred million dollars in
Speaker 3: a new round of funding. It's CEO even Bed's going
Speaker 3: to be joining us next.
Speaker 2: But let's get back.
Speaker 3: To markets, because there's been a huge, like a thousand
Speaker 3: point swing.
Speaker 2: On the NASAK one hundred. Right now I'm.
Speaker 3: Looking at it's going from peak of twenty nine eight
Speaker 3: hundred down to now twenty eight thy eight hundred in
Speaker 3: the course of half an hour or so.
Speaker 2: Is trading.
Speaker 3: We're seeing money being pulled out of chips of hardware,
Speaker 3: in particular of Apple. We're seeing the S and P
Speaker 3: five hundred now down by percentage point, the Semiconductor index
Speaker 3: off by almost four percent. It is a volatile session
Speaker 3: and a volatile few training days is a bluebotech. New
Speaker 3: York based startups Standard Bots has raised two hundred million
Speaker 3: dollars in a new round of funding to scale its
Speaker 3: AI powered robots.
Speaker 2: Now as a company tracks to secure ten percent.
Speaker 3: Actually of all robots deployed in the United States, CEO
Speaker 3: is actively advising Congress I'm banning Chinese competitors over national
Speaker 3: security risks.
Speaker 2: We can talk at all.
Speaker 3: Now a Standbot's co found CEO, Evan Beard, congratulations on
Speaker 3: the race. Let's start their Series C one billion dollar valuation.
Speaker 2: Would you get the two hundred.
Speaker 12: Million for thanks so much, Thanks for having me back.
Speaker 12: So we're using this funding to quadruple our manufacturing footprint.
Speaker 12: We've got a huge backlog of demand. We're growing very
Speaker 12: quickly and to also invest in more R and D.
Speaker 2: So it's going to be in Long Island.
Speaker 3: I understand how much sort of square footage, what sort
Speaker 3: of talent and R and D hardware do you need?
Speaker 12: Yeah, So we have an engineering office in New York
Speaker 12: City and our manufacturing space is seventy thousand square feet.
Speaker 12: It's about an hour outside New York City, but we
Speaker 12: think is the best city on earth, the best place
Speaker 12: to build robotics business and standardbots. Now we believe is
Speaker 12: America's largest AI native industrial robot manufacturer. So and we're
Speaker 12: just getting started.
Speaker 3: And by steal foremost, how many do you already have deployed?
Speaker 2: How many are out there in the wild?
Speaker 3: What makes you such as significant force in robotics already?
Speaker 8: Yeah, well, I could say we have basically in every state.
Speaker 12: We have small and medium businesses using our robot and
Speaker 12: we have iconic companies in aerospace, automotive, oil and gas
Speaker 12: data centers. So really we're working with the full gambit
Speaker 12: of folks that use robots. My favorite customer makes parts for.
Speaker 8: The Long Island Railroad. And the reason I will.
Speaker 2: Pick favorite children, Yeah.
Speaker 12: They were our first customers still a customer after a
Speaker 12: few years. And it's really emblematic if everyone uses our robot,
Speaker 12: which is they're making the things that make America, whether
Speaker 12: it's the infrastructure or the products that we use, so
Speaker 12: the railroad.
Speaker 3: Are they kind of playing using robots and understanding how
Speaker 3: they're going to work with them in the future. Are
Speaker 3: they really giving an awful lot of hard duty work
Speaker 3: to these humanoids? Are they able or arms that you make,
Speaker 3: are they able to hire less for example?
Speaker 12: Yeah, it's a good question, and investors asked that. But
Speaker 12: eighty five percent of our robots are doing production work.
Speaker 12: So these are not pilots, These are not just testing
Speaker 12: things out. These they're actually doing a job. And we
Speaker 12: think of robots as the power tool of the twenty
Speaker 12: first century. So they really enable a worker to do
Speaker 12: much more work before they improve the efficiency of our
Speaker 12: country and our workforce and k The problem that we
Speaker 12: see and what we said to Congress was the United
Speaker 12: States right now is not competitive and manufacturing. If you
Speaker 12: look at the United States against China and other countries,
Speaker 12: it can be five to ten x cheaper to make
Speaker 12: your parts in those countries. And so we think robots
Speaker 12: are this foundational technology that we as a country need
Speaker 12: to be more competitive, to be able to compete and
Speaker 12: to ultimately bring back jobs and bring back our manufacturing base.
Speaker 3: Foundational technology. Now you need the models to be able
Speaker 3: to drive these robots. I'm interested as to what you've done.
Speaker 3: I mean many would say in video in particular, saying
Speaker 3: that we're not quite there yet with physical AI.
Speaker 2: We're going to have this CHATCHYBT moment.
Speaker 3: But how you seeing these models evolving or indeed your
Speaker 3: robot's able to change and diversify.
Speaker 12: Yeah, it's a great question, and it's a reason why
Speaker 12: the US can take a lead in robotics right now.
Speaker 12: And the answer there is we're focused on training robots
Speaker 12: or demonstrations, so you show them what to do. We
Speaker 12: have a handheld device for that and you can just
Speaker 12: perform the task and you don't have to be an expert.
Speaker 12: And what it allows us to do is take an
Speaker 12: average of S worker, a manufacturing worker, and they can
Speaker 12: now program a robot and train an AI model. And
Speaker 12: this allows the robots to handle variability that they couldn't before.
Speaker 12: It allows them to do jobs that you just couldn't
Speaker 12: automate before. Because today's robots.
Speaker 8: Most people don't know. They really just replay motions.
Speaker 12: You program that millimeter by millimeter, and they can play
Speaker 12: through and paint in well that way, but they're so limiting.
Speaker 12: And so this is a fundamental change in what's possible
Speaker 12: and what you can automate with your robots.
Speaker 3: So Evan many would say, well, you're getting people to
Speaker 3: train their replacements. How are those that are working at
Speaker 3: the railroad feeling about helping train these robots?
Speaker 2: Would you see as the future of manufacturing workforce?
Speaker 12: It's a fair question. It's one we think about a lot.
Speaker 12: And my favorite anecdote in this regard is really from
Speaker 12: Milton Freeman, and he visited a job site in the
Speaker 12: seventies and he asked, why aren't they using Earth Moviment equipment.
Speaker 8: It was in a.
Speaker 12: Developing country and they were digging with shovels, and they said, well,
Speaker 12: this is the jobs project. So if we gave them shovels,
Speaker 12: if we gave them Mirth movie equipment, will create way
Speaker 12: fewer jobs.
Speaker 8: And he said, well, why don't you just give them spoons.
Speaker 12: And the point that Milton was making was you earned
Speaker 12: the right to create high paying jobs by creating something
Speaker 12: of economic value, and I think the United States in
Speaker 12: this next transition wants to be on the right side
Speaker 12: of that, and we want to use the tools which
Speaker 12: are in the physical world.
Speaker 8: It's robots, and it's.
Speaker 12: We really view them as this power tool, like a
Speaker 12: drill for workers to be more efficient and be able
Speaker 12: to do more.
Speaker 8: And we want to be on the right.
Speaker 2: Side of that, right side of that.
Speaker 3: With two hundred million dollars to keep on expanding here
Speaker 3: in the state of New York, we appreciate your time,
Speaker 3: Thank you very much. Indeed, standing bots co founder and
Speaker 3: CEO Evan Beard there now. The Mizuho Technology Conference is
Speaker 3: underway here in New York as well, bringing together top
Speaker 3: tech executives industry leaders. Speaking earlier, we've both remained bostic.
Speaker 3: It's not the CEO as I seen Ghazi really weighing
Speaker 3: in on the tightening restrictions targeting China ticulous, and.
Speaker 13: We are assuming China will remain the way it is currently,
Speaker 13: meaning our China business, specific to IP was one of
Speaker 13: our fastest going regions that hit the significant headwinds due
Speaker 13: to all the restrictions. I don't believe these restrictions are
Speaker 13: going to change. If they change fantastic. If not, we
Speaker 13: have plenty of opportunities outside of China to capture the.
Speaker 2: Growth coming up.
Speaker 3: Also in New York, well, the city's controller slams Elon
Speaker 3: Musks near total control of SpaceX ahead of the IPO
Speaker 3: for excluding the company won't be easy for the city's
Speaker 3: pension fund or others will have the details. And look,
Speaker 3: let's get back to these public markets that SpaceX is
Speaker 3: about to enter. They're down. They're down pretty hard. Then
Speaker 3: as that one hundred rolling over one point nine percent.
Speaker 3: We were higher at the start of trade s P
Speaker 3: five hundred or five percentage point.
Speaker 2: We've got Apple, you've got the likes of big tech.
Speaker 3: Tesla's in the red at the moment, we've got Mike
Speaker 3: crumpling down in a points perspective, and that's why we
Speaker 3: mean see the semiconductor index also under pressure.
Speaker 2: This will bely med tech.
Speaker 3: New York City Controller Mark Levine says Elon Musks unprecedented
Speaker 3: control will have over SpaceX serves as a new level
Speaker 3: of disregard for regular shaf holders rights. In an interviewed,
Speaker 3: Lavin said he quote understands that we're in an error
Speaker 3: of founders wanting more control that what Musk is planning
Speaker 3: with SpaceX is way beyond what we've seen.
Speaker 2: This is, of course, in reference to the stipulation that buying.
Speaker 3: Into SpaceX requires accepting a governance structure giving Musk roughly
Speaker 3: eighty percent of voting rights. Ne Megs Olivia Ramunday is
Speaker 3: one of the key reporters that have just gone global
Speaker 3: with this story. And let's start with New York New
Speaker 3: York State as well. There are a lot of people
Speaker 3: managing pension fund money who were worried about this level
Speaker 3: of control.
Speaker 14: Yes, Caroline, absolutely. I think that the controller's main concern
Speaker 14: is about having shareholders' voices be heard when they invest
Speaker 14: in a public company, and to have leadership and executives
Speaker 14: in those companies be held accountable to the concerns that
Speaker 14: their shareholders have around different issues related to the government
Speaker 14: structure of a company. I think what Levine wanted to
Speaker 14: explain to me is that he wants shareholders to still
Speaker 14: be in with their ability to vote in a one vote,
Speaker 14: one share type of structure.
Speaker 2: So is he saying I'm going to boycott it.
Speaker 3: Is he saying I can vote with my feet with
Speaker 3: my money and make an impact, or does he have
Speaker 3: to kind of go along with what is the biggest
Speaker 3: IPO ever.
Speaker 14: That's a great question, and based on my conversation that
Speaker 14: I had with him last week, I do not think
Speaker 14: the goal right now is to divest from the company
Speaker 14: or to exclude any type of exposure. He explained to
Speaker 14: me that with the pension system's own governance structure, that
Speaker 14: would be difficult. They have done sector based in exclusions
Speaker 14: before for the oil and gas industry, but to eliminate
Speaker 14: one company, he said, for their own governance structure, would
Speaker 14: be unprecedented. What he wants to do is he wants
Speaker 14: to engage with Elon Musk. He reached out to Musk
Speaker 14: in a letter co signed by Kelpers and the New
Speaker 14: York State pension funds. They want mus to engage with
Speaker 14: them and to work with them so that they can
Speaker 14: make changes from within, rather than just saying we're not
Speaker 14: going to invest.
Speaker 2: That's far no response.
Speaker 3: This is a global issue there and in some pension
Speaker 3: funds in Europe there actually are saying I don't want
Speaker 3: anything to do with this.
Speaker 14: We've had pension funds and investors in Denmark and the
Speaker 14: UK say that they are going to sit out from
Speaker 14: the IPO. That they will be willing to adjust their
Speaker 14: funds so that they are not exposed to SpaceX. One
Speaker 14: UK focused investor specifically said that they called the governance
Speaker 14: structure catastrophic and that it would not be prudent to
Speaker 14: have their investors exposed to it.
Speaker 2: Fascinating.
Speaker 3: While we can go in a lot into that story
Speaker 3: about some of the reticence and the reasons why Olivia
Speaker 3: and Rounde, I mean, go read her story. It's a
Speaker 3: real deep dive into the governance of this business. Meanwhile,
Speaker 3: we're looking at life pictures of NASA, which is just
Speaker 3: about to introduce its next Artemist crew two months after
Speaker 3: sending astronauts on a record setting lunafly by NASA, says,
Speaker 3: Artemist three launched four astronauts from the Kennedy Space Center
Speaker 3: in Florida.
Speaker 2: Will the Orion spacecraft on the Space.
Speaker 3: Launch System rocket the mission It's gonna last two weeks now,
Speaker 3: that does it? Though, for this edition of Bloomberg Tech,
Speaker 3: as we await that news from Artemis three, we see
Speaker 3: that the market's really taking in turn.
Speaker 2: Look, we're plunging to new loads of the day and.
Speaker 3: As like one hundred off by two point two percent,
Speaker 3: let's call it one thousand point swing. This is as
Speaker 3: you see, really big tech names take the brunt of
Speaker 3: the hit. We've got money coming out, in particular of Apple,
Speaker 3: of Micron, of Tesla. In fact, the SP five hundred
Speaker 3: is off by percent, let's call it. But actually underneath
Speaker 3: the hood is doing rather better. From a cross industry perspective,
Speaker 3: it really is tech in the line of fire. As
Speaker 3: many feel that perhaps we've run too far, too fast.
Speaker 3: There's a lot of volatility in the market and a
Speaker 3: lot of red flags. At the back of America have
Speaker 3: been saying to clients, too many red flags take profits
Speaker 3: while you can the Semiconductor index off by four point
Speaker 3: four percent after we claws back some of Friday sessions
Speaker 3: losses just yesterday.
Speaker 2: Look, you can recap all of this. Don't forget to
Speaker 2: check out the podcast.
Speaker 3: You'll find out on the terminal as well as online
Speaker 3: on Apple, Spotify.
Speaker 2: And iHeart. From New York, this is Bloomberg Tech