WEBVTT - Apple's Glucose Tracking and Tesla Comes Back to California 0:00:13.760 --> 0:00:16.479 I'm Caroline hired at Bloomberg's world headquarters in New York. 0:00:16.560 --> 0:00:20.120 This is Bloomberg Technology coming up. Apple making headway bringing 0:00:20.120 --> 0:00:23.400 its latest Moonshot style project to reality with a focus 0:00:23.400 --> 0:00:27.480 on glucose tracking. We'll bring you our Bloomberg exclusive. Meanwhile, 0:00:27.520 --> 0:00:31.160 a California company again, Tesla announces it's chosen Palo Alto 0:00:31.440 --> 0:00:34.559 for the company's global engineering headquarters. Will have more on 0:00:34.600 --> 0:00:38.040 Elon's improving relations with a Golden State class. We stick 0:00:38.080 --> 0:00:40.279 with autos for an exclusive conversation with the CEO of 0:00:40.280 --> 0:00:43.680 Mercedes from evs to automos driving will cover it. All 0:00:43.960 --> 0:00:46.519 that and so much more coming up, including earnings that 0:00:46.560 --> 0:00:49.360 finally come from Nvidia. Let's get into Apple because as 0:00:49.440 --> 0:00:51.760 when we saw some gyrations throughout the stock on the day, 0:00:52.000 --> 0:00:54.720 look at this peak high at about two o'clock that 0:00:54.880 --> 0:00:57.160 was New York time. Why because we've got a scoop. 0:00:57.280 --> 0:01:00.800 We got indeed some exclusive reporting coming from Markman, who 0:01:00.840 --> 0:01:04.679 broke a story all regarding the next Moonshot coming from Apple, 0:01:04.800 --> 0:01:08.000 the focus on glucose tracking. Mark German, you're with us, 0:01:08.120 --> 0:01:10.200 just talk us through what indeed this is going to be. 0:01:10.200 --> 0:01:13.360 It's all about the watch, right all about the watch, 0:01:13.480 --> 0:01:17.160 all about healthcare, all about glucose tracking. Really the holy 0:01:17.240 --> 0:01:19.960 grail for a smart watch to be able to tell 0:01:19.959 --> 0:01:22.120 you all of your health metrics. And one of the 0:01:22.120 --> 0:01:25.360 most important health metrics, as we all know, is blood 0:01:25.360 --> 0:01:28.480 sugar or blood glucose monitoring. You want to know how 0:01:28.560 --> 0:01:31.600 much glucose is in your body because that's an indicator 0:01:31.640 --> 0:01:35.559 of pre diabetes or type two diabetes or other health conditions. 0:01:35.840 --> 0:01:39.000 And today getting that data requires the prick of a skin, 0:01:39.319 --> 0:01:42.039 right or a blood draw from your veins. What Apple 0:01:42.160 --> 0:01:44.240 wants to do is it wants to create a system 0:01:44.319 --> 0:01:48.520 using chips, sensors, software, algorithms built into the Apple Watch 0:01:48.680 --> 0:01:51.320 to get a read on how much glucose you have 0:01:51.360 --> 0:01:55.680 in your blood without needing a blood sample. Okay, everyone 0:01:55.800 --> 0:01:59.000 that views this show wants to understand the innovation, the 0:01:59.000 --> 0:02:02.520 actual technology behind this. What is new? How is this 0:02:02.600 --> 0:02:06.480 different from what's already on the market. Well, two terms, 0:02:06.480 --> 0:02:11.040 I'll give you one, optical spectroscopy right in the other 0:02:11.320 --> 0:02:15.519 silicon photonics. Those are some pretty hardcore types of technologies 0:02:15.560 --> 0:02:18.639 that Apple's working on to make this happen. Right. This 0:02:18.720 --> 0:02:21.440 means that the technology will use a chip that can 0:02:21.480 --> 0:02:26.280 output light or lasers right into your skin and read 0:02:26.680 --> 0:02:30.760 how much glucose is in your what's known as interstitial fluid. 0:02:31.080 --> 0:02:33.600 That's the fluid that comes out of your blood capillaries, 0:02:33.680 --> 0:02:36.639 and everyone has that fluid across their body. And it 0:02:36.720 --> 0:02:39.440 could use lasers shoote to your skin, and then it 0:02:39.520 --> 0:02:43.280 has sensors that could read right the concentration of light 0:02:43.520 --> 0:02:46.520 in your skin to know how much glucose is there 0:02:46.680 --> 0:02:50.040 in order to get that reading innovation hit right there 0:02:50.080 --> 0:02:53.520 for US mark interesting JP Morgan saying, for now, this 0:02:53.600 --> 0:02:56.040 isn't a threat to device makers, but what about the 0:02:56.080 --> 0:02:59.560 people behind this mark he's building it. Yeah, it's definitely 0:02:59.560 --> 0:03:01.680 not a threat device makers right now because this is 0:03:01.680 --> 0:03:03.600 not going to hit the market probably for another three 0:03:03.639 --> 0:03:06.239 to five years. So I would agree with JP Morgan 0:03:06.320 --> 0:03:08.359 that if something is not hitting for three years, it's 0:03:08.400 --> 0:03:12.240 not going to have an impact. And also after it arrives, 0:03:12.440 --> 0:03:15.520 right there is such a big market share already from Abbott, 0:03:15.520 --> 0:03:17.760 index Com and other providers, and it's going to take 0:03:17.840 --> 0:03:20.239 time for Apple to penetrate that market and get the 0:03:20.320 --> 0:03:22.760 regulation they're looking for. So you know, I would agree, 0:03:22.800 --> 0:03:25.040 at least in the short term in terms of who's 0:03:25.080 --> 0:03:27.960 behind this. Apple has a secret moonshots team called the 0:03:28.000 --> 0:03:31.840 Exploratory Design Group, and this is the team developing this moonshot, 0:03:31.880 --> 0:03:35.040 along with other projects, as well as Apple's health team 0:03:35.040 --> 0:03:39.120 and hardware engineering and software engineering teams. Fascinating. One of 0:03:39.120 --> 0:03:42.000 the most read on the Terminal dot com. Mark German, 0:03:42.040 --> 0:03:45.040 as always, we thank you. Let's get to the breaking 0:03:45.040 --> 0:03:48.280 news that just came. Finally, we've been tracking in videos, earnings, 0:03:48.680 --> 0:03:51.960 postmarket reaction as well to deep dive on the analysis 0:03:51.960 --> 0:03:54.400 of why it's rising after as bloomugg intelligence, as man 0:03:54.480 --> 0:03:57.200 Leap saying, is here with us more than seven percent rally. 0:03:57.560 --> 0:04:01.080 We like the forecast well, so clearly the data center 0:04:01.280 --> 0:04:03.800 was the focus and they did quite well. Although it 0:04:03.960 --> 0:04:07.120 was below consensus, the guidance suggests the data centers spend 0:04:07.160 --> 0:04:10.400 will hold up. And remember data centers directly tied to 0:04:10.520 --> 0:04:14.080 the enterprise tex spending and their CAPEX spend. If all 0:04:14.120 --> 0:04:17.640 the cloud providers are investing, you know, in building more 0:04:17.680 --> 0:04:21.080 cloud capacity, a lot of that spending is going towards 0:04:21.440 --> 0:04:24.200 in videos data centers spend, and I think that's where 0:04:24.640 --> 0:04:27.000 market is excited that, you know, you're not seeing the 0:04:27.080 --> 0:04:29.880 sort of inventory correction we see on the PC side 0:04:30.360 --> 0:04:33.560 with Intel, you know, cutting their forecasts. That's not the 0:04:33.640 --> 0:04:36.800 case with enterprise chips, and so far, enterprise tex spending 0:04:37.200 --> 0:04:39.920 has held up across the board, even when it comes 0:04:39.920 --> 0:04:42.280 to you know, software side, and that's what you see 0:04:42.320 --> 0:04:44.120 on the chip side as well. So so when I 0:04:44.160 --> 0:04:47.000 think data centers, I think artificial intelligence. I look at 0:04:47.040 --> 0:04:49.560 the statement and it says AI is at an inflection 0:04:49.640 --> 0:04:52.599 point setting up a broad adoption reaching into every industry. 0:04:52.760 --> 0:04:54.800 How much is the video set to benefit? Well, so 0:04:54.960 --> 0:04:58.160 they are the leaders when it comes to developing these 0:04:58.400 --> 0:05:01.520 chips for whether it's for chatchee PT or for automotive 0:05:01.720 --> 0:05:04.960 or anything that has to do with you know, parallel processing. 0:05:05.040 --> 0:05:07.600 A GPU type of chip, you can find a lot 0:05:07.680 --> 0:05:09.520 of use cases and that's what they've done well in 0:05:09.680 --> 0:05:13.160 terms of diversifying that top line. I think Intel's biggest 0:05:13.560 --> 0:05:16.040 problem is the fact that they were never able to 0:05:16.120 --> 0:05:19.520 go beyond PCs. Guess what, Nvidia has done that very well, 0:05:19.800 --> 0:05:22.080 and they're able to find these new use cases for 0:05:22.200 --> 0:05:25.560 their GPU chips. Even the gaming segment actually did better 0:05:25.600 --> 0:05:28.520 than expected. Yes, it declined, but you can see once 0:05:28.600 --> 0:05:32.000 the market has a cyclical rebound. Their position very well 0:05:32.040 --> 0:05:33.800 on the gaming side, So that's why you see that 0:05:33.880 --> 0:05:36.640 stock reaction. Although I don't know if Nvidia should be 0:05:36.680 --> 0:05:39.240 trading at five times market cap of Intel, even though 0:05:39.279 --> 0:05:42.240 Intel's revenue is two times bigger. So time will tell 0:05:42.320 --> 0:05:47.359 if evaluation could be a question. Valuations mandy, but notable 0:05:47.400 --> 0:05:49.440 the Intel today. The news was the slashing of the 0:05:49.520 --> 0:05:52.559 dividend at a time that we are worried about boom 0:05:52.600 --> 0:05:58.440 bust cycles. Anything in Nvidia that caused you cause for concern, Well, 0:05:58.480 --> 0:06:01.479 so one is gross margins is very important. This quarter 0:06:01.560 --> 0:06:04.680 they went back to mid sixty percent. Anytime you see 0:06:04.680 --> 0:06:07.640 a chip company trading at mid sixty percent ross margin, 0:06:07.760 --> 0:06:11.240 I'm worried because guess what. As a sector, chip sector 0:06:11.320 --> 0:06:15.080 doesn't command those high gross margins, those high ESPs. Over time, 0:06:15.160 --> 0:06:18.000 it gets commodit highs other players catch up, and it's 0:06:18.160 --> 0:06:21.000 very hard for a chip company to sustain those kind 0:06:21.040 --> 0:06:23.400 of gross margins without layering on software, which is what 0:06:23.600 --> 0:06:27.360 NVIDIAs plays. They want more software on their chips. Interesting, 0:06:27.440 --> 0:06:30.680 we've got breaking news coming from the coal The CFO 0:06:30.800 --> 0:06:34.560 currently sagment Invidios saw orders pause as a timing issue. 0:06:34.600 --> 0:06:37.560 This is to do with the cloud service providers pausing 0:06:37.680 --> 0:06:40.640 orders in the fourth quarter. What does that signal to you? 0:06:40.800 --> 0:06:44.200 That is direct CAPEX spend from the cloud providers. And 0:06:44.720 --> 0:06:48.080 that's the other risk with Nvidia is the customer concentration. 0:06:48.520 --> 0:06:50.640 A lot of that data center revenue, which is a 0:06:50.680 --> 0:06:53.680 fifteen billion dollars run rate, is driven by these hyperscalers, 0:06:53.760 --> 0:06:56.240 which are four or five customers. They are the ones 0:06:56.279 --> 0:06:58.800 who are building cloud capacity. And we all expect a 0:06:58.880 --> 0:07:01.800 digestion phase and it comes to cloud spending. It's not 0:07:01.920 --> 0:07:04.320 as if it's not going to come back, but because 0:07:04.440 --> 0:07:07.760 these companies have been spending, you know, CAPEX, growing it 0:07:07.839 --> 0:07:10.240 at elevated levels, there will be a pause and it 0:07:10.360 --> 0:07:12.600 could be a two quarter pause, it could be four quarters. 0:07:12.800 --> 0:07:16.320 I think that's where they're talking about. Probably order growth sline. 0:07:16.480 --> 0:07:18.559 We'll let you get back to the cool and everyone 0:07:18.600 --> 0:07:20.920 will digest it. Always great to get your remedia analysis 0:07:20.960 --> 0:07:31.600 for the man intelligence is man deep sing well. The 0:07:31.760 --> 0:07:33.920 challenge for the industry in the next three to four 0:07:34.000 --> 0:07:38.200 years is to absorb the additional cost of electrification, to 0:07:38.400 --> 0:07:41.960 protect affordability and make sure that middle classes can buy 0:07:42.520 --> 0:07:45.880 pure evs at an affordable price. Does that mean job cuts? 0:07:47.360 --> 0:07:50.680 It means that we are not excluding anything from the 0:07:50.800 --> 0:07:55.520 task of absorbing the cost of electrification. The Lantis see 0:07:55.800 --> 0:07:58.840 Carlos Tebreras saying that the company that makes jeeps makes 0:07:58.880 --> 0:08:01.480 them as a raalties may have to further adapt its 0:08:01.480 --> 0:08:03.880 industrial footprint in the United States and indeed in Europe 0:08:03.920 --> 0:08:06.720 as a consequence of the expensive shift to evs. That's 0:08:06.880 --> 0:08:09.640 nothing off the table, of course, even additional job cuts 0:08:09.680 --> 0:08:12.680 to further cut down on costs. So now let's talk 0:08:12.720 --> 0:08:16.440 to another key player in the industry. Probe plea to say, ed, 0:08:16.520 --> 0:08:20.840 you're standing by with the leader of Mercedes. Yeah, we 0:08:21.000 --> 0:08:23.280 joined by all the Collonne as chairman of the management 0:08:23.360 --> 0:08:26.120 board is of Mercedes. We're here in the heart of 0:08:26.160 --> 0:08:30.280 Silicon Valley in Sunnyvale. Why why have you come all 0:08:30.320 --> 0:08:33.360 this way to talk to me about software? Where we're 0:08:33.440 --> 0:08:36.520 here at the tech center in Suny Vale from Mercedes 0:08:36.600 --> 0:08:38.360 pans that we have had now for more than twenty 0:08:38.400 --> 0:08:40.520 five years. So we have always been here in the 0:08:40.640 --> 0:08:44.640 valley working with innovative tech partners, and we thought it 0:08:44.800 --> 0:08:48.600 was a fitting place to actually describe what the future 0:08:48.640 --> 0:08:53.280 of software and the corres corresponding hardware looked like. In Mercedes, 0:08:53.320 --> 0:08:54.599 we have a lot of grounds to cover. But I 0:08:54.640 --> 0:08:58.120 want to start by asking you how high does software 0:08:58.240 --> 0:09:00.760 rank as a priority for messees and all of the 0:09:00.880 --> 0:09:04.280 things that you're trying to achieve broadly and electrification, but 0:09:04.400 --> 0:09:09.520 also in autonomous driving. Software is absolutely a core competence 0:09:09.640 --> 0:09:12.319 for the car of the future. So we have been 0:09:12.480 --> 0:09:16.520 building up our software competence gradually over the last years. 0:09:17.440 --> 0:09:19.920 But this is a space that is so broad that 0:09:20.360 --> 0:09:22.920 even if you make yourself the architect of your own 0:09:23.000 --> 0:09:25.719 operating system, you don't have to do everything yourself. You 0:09:25.800 --> 0:09:27.760 need partnering as well. Well, let's jump into that. So 0:09:27.960 --> 0:09:32.640 you have announced a deeper relationship with Google, and it's 0:09:32.679 --> 0:09:36.640 a license agreement. You pay Google for help in building 0:09:36.679 --> 0:09:40.079 out your operating system. Why did you do that instead 0:09:40.120 --> 0:09:43.920 of taking advantage of open source software or just doing 0:09:43.960 --> 0:09:47.480 it yourself. The core of the relationship with Google, the 0:09:47.520 --> 0:09:50.440 strategic partnership that we have formed, is our joint vision 0:09:50.480 --> 0:09:54.080 of taking technology to the next level. Everybody knows Google Maps, 0:09:54.120 --> 0:09:57.400 Google Navigation, and of course YouTube on the entertainment side, 0:09:58.080 --> 0:10:00.280 where we said, what do our customers want? It's all 0:10:00.280 --> 0:10:03.679 about delivering a superior customer experience. So we sat down 0:10:03.760 --> 0:10:06.000 with a Google team and sent what can we do together, 0:10:06.160 --> 0:10:09.040 how can we make navigation in the car go to 0:10:09.160 --> 0:10:13.240 the next level? And that sparked a deeper conversation, and 0:10:13.320 --> 0:10:16.839 here we are announcing a partnership today. Marcus Schaefer, your 0:10:16.920 --> 0:10:20.240 CTO set out the ultimate goal, which is to have 0:10:20.600 --> 0:10:23.680 no screen mirroring, no need to plug in the phone. 0:10:23.760 --> 0:10:26.480 The operating system is all you ever need. But you 0:10:26.800 --> 0:10:30.480 can't get away from the fact that Google through Android 0:10:30.559 --> 0:10:34.000 Auto or Apple through car Play, they are making their 0:10:34.040 --> 0:10:38.079 own moves into this market. How do you reconcile that 0:10:38.360 --> 0:10:42.319 Google's own ambitions with your partnership and your kind of 0:10:42.679 --> 0:10:47.079 want to take control of the software architecture. If you 0:10:47.280 --> 0:10:49.560 take the look at the Mercedes now what it's going 0:10:49.600 --> 0:10:51.000 to be in the future. First of all, you have 0:10:51.160 --> 0:10:57.199 this mind boggling wide screen in the car, and you 0:10:57.320 --> 0:11:00.520 can present anything and everything on that screen. And this 0:11:00.760 --> 0:11:04.200 is where we shouldn't make the mistake of just looking 0:11:04.280 --> 0:11:08.600 at entertainment alone, but think about across domains entertainment interacting 0:11:08.800 --> 0:11:11.560 with the assistance system and automated driving. So you can 0:11:11.679 --> 0:11:16.640 marry navigation with driving assistance and automated driving and create 0:11:16.720 --> 0:11:20.160 whole new use cases and only a vehicle manufacturer is 0:11:20.280 --> 0:11:23.520 in the position to integrate all the different pieces of 0:11:23.679 --> 0:11:29.600 the vehicle down to immersive experiences is music and entertainment 0:11:29.679 --> 0:11:33.199 where you even use the climate control, the scent in 0:11:33.280 --> 0:11:36.880 the car, the subwoofers in the seat to create four 0:11:37.000 --> 0:11:40.440 D sound. All of those things make it a compelling 0:11:40.760 --> 0:11:44.160 argument to go for an integrated approach. But we don't 0:11:44.160 --> 0:11:46.760 have an antagonistic relationship with any one of these tech players. 0:11:47.400 --> 0:11:51.680 We work with them to take their valuable assets digital 0:11:51.760 --> 0:11:54.559 assets and put it into our system. So this is 0:11:54.600 --> 0:11:57.959 really a win win as part of that software strategy. 0:11:58.679 --> 0:12:02.199 Are you actively hiring you know, Google is one example 0:12:02.240 --> 0:12:05.760 of many names in Silicon Valley that have done layoffs recently. 0:12:05.840 --> 0:12:08.800 There is a lot of software engineering talent on the 0:12:08.880 --> 0:12:12.240 market at the moment we are actively hiring. And whereas 0:12:12.280 --> 0:12:15.800 we work with software for many many years, these last 0:12:15.880 --> 0:12:17.640 three or four or five years have really been a 0:12:18.120 --> 0:12:21.000 paradigm shift for us where we're going for partial vertical 0:12:21.040 --> 0:12:23.840 integration and we set out the target a few years 0:12:23.880 --> 0:12:27.319 ago to add another three thousand software engineers to the 0:12:27.400 --> 0:12:31.640 Mercedes team, and we have almost accomplished that already. But 0:12:31.880 --> 0:12:35.400 if we find the right talent in the market, that 0:12:35.760 --> 0:12:39.760 supplements our team. Yes, we are hiring. How much of 0:12:39.800 --> 0:12:43.559 a competitive mode do you feel Mercedes has in the 0:12:43.679 --> 0:12:46.400 theater of software. Do you think that you are actually 0:12:46.840 --> 0:12:48.559 going to be able to do this on your own 0:12:48.600 --> 0:12:53.840 two feet? Absolutely? As an architect of the operating system, yes, 0:12:54.520 --> 0:12:59.800 we have laid out what the whole system is supposed 0:12:59.840 --> 0:13:02.000 to do and it's going to be capable of doing. 0:13:02.480 --> 0:13:05.160 But when you build a software house, you don't have 0:13:05.240 --> 0:13:07.720 to lay every single brick yourself or put up every 0:13:07.800 --> 0:13:11.320 single pile in the bathroom. And that's why you leverage 0:13:11.600 --> 0:13:15.120 tech partnerships. You've got to be in control, asked the architect. 0:13:15.200 --> 0:13:18.760 But leverage tech partnerships and make sure that you work 0:13:18.960 --> 0:13:21.840 with the best to deliver the ultimate customer experience. Self 0:13:21.920 --> 0:13:25.360 driving was another part of today. Thank you for the ride. 0:13:25.440 --> 0:13:28.280 This morning, I went out and took a Level three 0:13:28.920 --> 0:13:32.160 ride using drive pilot on the freeway. It was limited 0:13:32.200 --> 0:13:35.839 to a certain extent. What caught my ear during the 0:13:35.920 --> 0:13:39.600 presentations was fifty percent of net sales for autonomous software 0:13:39.800 --> 0:13:42.839 will go to your partner. And Vidia taught me through 0:13:42.920 --> 0:13:45.400 that relationship and why you went that route to develop 0:13:45.520 --> 0:13:50.439 the compute. We are the first manufacturer that certified a 0:13:50.520 --> 0:13:54.000 Level three system that you drove today, So actually true 0:13:54.000 --> 0:13:57.200 autonomy in this case on the highway in heavy traffic. 0:13:57.280 --> 0:14:00.559 So now we're taking the first few steps here for 0:14:01.520 --> 0:14:04.679 individual mobility where really the car is going to give 0:14:04.760 --> 0:14:08.480 you back the most valuable gift of all time. In 0:14:08.600 --> 0:14:11.800 the relationship within video that we formed about three years ago, 0:14:12.480 --> 0:14:15.280 both parties said, here, okay, listen, let's take this to 0:14:15.400 --> 0:14:18.440 the next level. But let's find another business model where 0:14:18.720 --> 0:14:22.360 both parties invest into the partnership. Yes, but also in 0:14:22.480 --> 0:14:27.120 an intelligent and equitable way, can reap benefits from the partnership. 0:14:27.200 --> 0:14:31.240 So this is a combined risk and reward partnership that 0:14:31.440 --> 0:14:34.600 we think not only technologically but economically is going to 0:14:34.680 --> 0:14:36.720 work really well for both parties. And you know it's 0:14:36.720 --> 0:14:38.800 available in Nevada at the moment, you have a permit, 0:14:38.880 --> 0:14:42.160 you're awaiting California. You talk about this goal of a 0:14:42.240 --> 0:14:46.239 billion euros of EBIT by I think mid decade, generated 0:14:46.320 --> 0:14:49.440 in part from autonomous software. How big is the market 0:14:49.480 --> 0:14:51.640 here in the United States for that or is this 0:14:51.840 --> 0:14:54.200 large You're going to be driven out of Europe. Now, 0:14:54.360 --> 0:14:56.200 United States going to be an important market for US, 0:14:56.240 --> 0:14:59.000 and it's a growing market, so it's about increasing the 0:14:59.120 --> 0:15:01.960 envelope and writing more and more use cases in the 0:15:02.080 --> 0:15:07.000 automated drive space all the way up then to autonomous 0:15:07.080 --> 0:15:10.640 drive level three, drive on highway, on the interstate, and 0:15:10.800 --> 0:15:13.360 in fact the system that we're working on for the 0:15:13.480 --> 0:15:15.520 next generation, we want to take that well above a 0:15:15.640 --> 0:15:18.400 hundred kilometers an hour and then it starts becoming really 0:15:18.480 --> 0:15:20.920 really relevant if you're going on a longer trip, and 0:15:21.160 --> 0:15:24.520 do we believe that we can monetize that absolutely. Tesla 0:15:25.080 --> 0:15:27.520 has a very clear approach of how they package full 0:15:27.600 --> 0:15:31.320 self driving an autopilot. They've had their own use today. 0:15:31.360 --> 0:15:35.720 Of course, how do you decide, Mercedes what you charge 0:15:35.800 --> 0:15:37.600 for and what you don't charge for. You put a 0:15:37.640 --> 0:15:40.920 lot of emphasis throughout the whole day on the customer experience, 0:15:41.000 --> 0:15:44.160 this having to be what the customer wants. But ultimately, 0:15:44.200 --> 0:15:46.040 if you draw up the list, it's a long list 0:15:46.120 --> 0:15:48.760 of things that you pay for on top of your car. 0:15:50.320 --> 0:15:53.720 The good thing with MBOs is that the whole car, 0:15:54.120 --> 0:15:56.880 every single aspect of the car in terms of electric 0:15:56.960 --> 0:16:02.320 electronic architecture, it's digital backbone, will be over the air reachable, 0:16:03.160 --> 0:16:07.920 so we can make your car actually become better with time, 0:16:08.040 --> 0:16:11.840 it doesn't age, it actually gets more functionality over time. 0:16:12.560 --> 0:16:15.200 Some of the functions they're going to be base functions, 0:16:15.320 --> 0:16:18.320 which is just embedded in the basic price of the vehicle, 0:16:18.840 --> 0:16:21.800 but much of the additional stuff, and especially in the 0:16:21.920 --> 0:16:26.520 ultimated driving space, we feel are so attractive that they 0:16:26.600 --> 0:16:30.520 can be monetized or local Ennius, Chairman of the management Board, Mercedes, 0:16:30.520 --> 0:16:33.320 thank you for having us here in Sunny Vale releasing 0:16:33.360 --> 0:16:37.120 your news out here in California, Caroline. Big emphasis on software, 0:16:37.160 --> 0:16:39.760 which they say could reach up to ten billion dollars 0:16:39.800 --> 0:16:41.920 of sales from a software aspected by the end of 0:16:41.960 --> 0:16:43.800 the decade, is something you just got to keep an 0:16:43.800 --> 0:16:46.360 eye on. I know you will. I know we will, 0:16:46.560 --> 0:16:48.480 thanks to Ed And of course we've got to keep 0:16:48.480 --> 0:16:50.840 an eye on what's happening over with Tesra as well. 0:16:50.960 --> 0:16:53.720 Today we're focusing on California. We'll bring in the details 0:16:53.720 --> 0:16:57.120 of the company's new engineering headquarters in the Golden State, 0:16:57.640 --> 0:16:59.080 and then let's have a quick check on some of 0:16:59.080 --> 0:17:03.400 the earnings that come aftermarket and the aftermarket movement therefore 0:17:03.440 --> 0:17:06.280 in stocks eBay. The one we shine a light on now, 0:17:06.760 --> 0:17:08.520 that's Tesla after hours. I want to flick it on 0:17:08.560 --> 0:17:10.719 to what's happening with eBay after Hours, because we did 0:17:10.800 --> 0:17:15.359 see fourth cornernet revenue beating expectations, therefore looking guidance also 0:17:15.480 --> 0:17:19.280 beating expectations, but not enough seven straight quarters of active 0:17:19.359 --> 0:17:22.480 buyers on the downside. And even though this looks sign 0:17:22.560 --> 0:17:24.959 might be a pivot point in terms of its sales, 0:17:25.400 --> 0:17:28.439 it's not enough for investors. We're currently falling for eBay 0:17:28.600 --> 0:17:31.119 after Hours. We're bringing those shares In a moment from 0:17:31.160 --> 0:17:44.840 New York, from San Francisco, the sib Blomberg Tech meets Politics, 0:17:45.080 --> 0:17:47.520 Elon Musk and Gammon Newsome and out saying a new 0:17:47.640 --> 0:17:52.040 Tesla Global Engineering headquarters in Palo Alto, California earlier today 0:17:52.119 --> 0:17:54.639 a sign of well, at least some corporation between the 0:17:54.720 --> 0:17:57.640 electric vehicle maker and the state it once called home. 0:17:58.080 --> 0:18:01.280 Joining us for more s Bloomberg's Dana Hall and is 0:18:01.320 --> 0:18:03.480 this a sort of thoring of relations because I thought 0:18:03.560 --> 0:18:06.080 Tesla hot footed it out of California in twenty twenty one. 0:18:06.920 --> 0:18:09.240 Well that's what everyone thinks. I mean, the company moved 0:18:09.280 --> 0:18:12.159 its corporate headquarters to Austin, Texas, but it still has 0:18:12.240 --> 0:18:16.320 over forty seven thousand employees in California, including many engineers 0:18:16.400 --> 0:18:19.280 it's auto pilot team. And then the announcement today is 0:18:19.280 --> 0:18:22.520 just kind of a proofpoint that, like, you know, Tesla's 0:18:22.600 --> 0:18:25.200 still very much a California company, even if their corporate 0:18:25.240 --> 0:18:28.159 headquarters and their new factory is in Texas. Exactly what 0:18:28.280 --> 0:18:32.080 Gavin Newsom said, it's a California company, forty seven thousand 0:18:32.200 --> 0:18:35.160 employees still here. But he has been known to criticize 0:18:35.200 --> 0:18:39.560 in a musk the tax system, the liberal politics. Will 0:18:39.600 --> 0:18:43.560 he continue to do that. I'm sorry Newsom has not 0:18:43.760 --> 0:18:46.879 criticized Musk directly, but the two have definitely had a 0:18:46.920 --> 0:18:48.720 bit of you know, there was definitely it was definitely 0:18:48.760 --> 0:18:51.760 a big blow to California when Tesla moved its headquarters 0:18:51.840 --> 0:18:54.720 to Texas, and Newsom has been very careful not to 0:18:54.800 --> 0:18:57.800 criticize Musk directly. But you know, we're sort of at 0:18:57.840 --> 0:19:00.960 this point in the culture wars where California and Texas 0:19:01.000 --> 0:19:03.320 are often pitted against each other, and I think what 0:19:03.400 --> 0:19:07.040 we're seeing today is that Tesla and Musk himself somewhat 0:19:07.119 --> 0:19:09.159 rarely are making a point that they are still very 0:19:09.280 --> 0:19:12.400 much here in California. They are hiring in California, they're 0:19:12.400 --> 0:19:15.200 engineering headquarters as in Palo Alto, And it was kind 0:19:15.200 --> 0:19:18.840 of a weird announcement. It was relatively short, very few details, 0:19:19.040 --> 0:19:22.000 but significant. Nonetheless, the first time that I can recall 0:19:22.080 --> 0:19:26.040 seeing Newsome and Musk together in the same place in 0:19:26.440 --> 0:19:29.480 like over a decade. Yeah, sorry to make play a 0:19:29.560 --> 0:19:33.560 sort of Musk has been the critique, the criticizer, and 0:19:33.960 --> 0:19:36.440 not Gammon Newsom. In fact, he was sort of praising 0:19:36.960 --> 0:19:40.600 the CEO right, calling him a visionary spirit and for 0:19:40.720 --> 0:19:42.960 his record of innovation. What more are we expecting out 0:19:43.000 --> 0:19:47.200 of California from Tesla at the moment? Well, Tesla is 0:19:47.280 --> 0:19:50.080 expanding here. I mean, they have this huge megapac facility 0:19:50.200 --> 0:19:52.879 in lay Thrip where they're building their massive batteries that 0:19:52.920 --> 0:19:56.400 they're selling to utilities. This engineering headquarters, you know, it's 0:19:56.440 --> 0:19:59.600 basically Tesla is kind of moving its engineering team to 0:19:59.640 --> 0:20:03.560 be old Hewlett Packard offices in Palo Also. I mean, 0:20:03.560 --> 0:20:05.000 I think you're just going to continue to see the 0:20:05.000 --> 0:20:07.520 company grow and expand both here and in Texas. And 0:20:07.720 --> 0:20:10.040 you know, Musk is very sort of adroitly playing both 0:20:10.119 --> 0:20:13.200 sides of the aisle in terms of the politics and 0:20:13.560 --> 0:20:16.600 an optics of all this. It's always about politics and 0:20:16.680 --> 0:20:19.080 optics sometimes and Dana Hall breaks it over town for us. 0:20:19.119 --> 0:20:29.639 We thank you so much. I'm X and from this 0:20:29.840 --> 0:20:32.000 moment on, I'm going to be your own personal AI 0:20:32.119 --> 0:20:36.480 DJ on Spotify. Let's go move over chat Gypt. Here's 0:20:36.480 --> 0:20:40.480 the generative AI. You've been waiting for, your own personalized DJ. 0:20:40.880 --> 0:20:45.000 Spotify is leaning into generative AI. Just as the trend 0:20:45.160 --> 0:20:48.760 is hot. Think how good you're Weekly Discover mixtape is 0:20:48.960 --> 0:20:52.600 or your year wrapped bos new. Is this generative AI 0:20:52.800 --> 0:20:55.200 part because the DJ's gonna be able to give you 0:20:55.320 --> 0:20:57.480 context and commentary as to why you like a song 0:20:57.600 --> 0:21:00.240 and harp in on your own likes and move away 0:21:00.280 --> 0:21:03.119 from it dislikes. All right, Max, let's get you out 0:21:03.160 --> 0:21:05.520 of your fields and switch up to five. The voice 0:21:05.760 --> 0:21:09.200 that the DJ uses authentic. The actual voice is based 0:21:09.240 --> 0:21:12.320 upon the head of Cultural Partnership. Spotify was my dream 0:21:12.359 --> 0:21:14.480 company to work for and now to be the voice 0:21:14.880 --> 0:21:18.280 for so many people and give context to how they listen, 0:21:18.480 --> 0:21:21.320 give them fun facts about the artists and about how 0:21:21.440 --> 0:21:23.320 they listen, and and just serve it up for him. 0:21:23.680 --> 0:21:26.080 For me is a dream come true. What it did 0:21:26.240 --> 0:21:29.520 was create an additional opportunity. So I see this as 0:21:29.680 --> 0:21:33.560 creating a lot more opportunities for creators such as myself 0:21:34.000 --> 0:21:36.920 to be heard and for your talent to be used 0:21:37.160 --> 0:21:40.920 in with AI. You need the human inputs into AI 0:21:41.080 --> 0:21:43.399 to really do it right, where you can connect and 0:21:44.000 --> 0:21:47.280 be authentic and have that sincerity. So for me, I 0:21:47.359 --> 0:21:50.600 think it presents more opportunities as opposed to taking them away. 0:21:50.720 --> 0:21:54.400 This really could be the future. So discoverability in terms 0:21:54.440 --> 0:21:58.879 of music, welcome back to being back technology. I'm Carline, 0:21:58.960 --> 0:22:01.960 Hide in New York and well Spotify there. Crout sounded 0:22:02.000 --> 0:22:06.280 pretty optimistic about its AI DJ, but generative AI has 0:22:06.400 --> 0:22:09.400 had its share of blunders. Perhaps For instance, some journalists 0:22:09.520 --> 0:22:14.399 recently encountered some strange behavior men interacting Microsoft's preview release 0:22:14.480 --> 0:22:16.479 of its own chatbot this month, and it turns out 0:22:16.560 --> 0:22:19.280 look that Microsoft has already spent months trying to fix 0:22:19.359 --> 0:22:23.000 the disturbing responses, which apparently many data as far back 0:22:23.040 --> 0:22:25.440 as November, and it seems to center on a version 0:22:25.800 --> 0:22:29.080 of Microsoft that dubbed Sydney, an older model of the 0:22:29.160 --> 0:22:31.960