1 00:00:04,160 --> 00:00:07,800 Speaker 1: Bloomberg Tech is a live from coast to coast with 2 00:00:08,000 --> 00:00:09,200 Speaker 1: Caroline Hide. 3 00:00:08,920 --> 00:00:11,760 Speaker 2: In New York and Eva Low in Sent Francisco. 4 00:00:15,160 --> 00:00:16,960 Speaker 3: This is Bloomberg Tech coming up. 5 00:00:17,040 --> 00:00:20,119 Speaker 4: Micron boosts its commitment to invest in new memory chip 6 00:00:20,160 --> 00:00:22,439 Speaker 4: capacity and R and D in the USA. 7 00:00:22,720 --> 00:00:25,520 Speaker 1: Plus we stay across the evolving story of the Boeing 8 00:00:25,600 --> 00:00:28,080 Speaker 1: Dreamliner crash in India that leaves over two. 9 00:00:27,920 --> 00:00:32,640 Speaker 4: Hundred dead, and fintech firm Chime prices its IPO above 10 00:00:32,680 --> 00:00:35,360 Speaker 4: its targeted range to raise eight hundred and sixty four 11 00:00:35,400 --> 00:00:36,559 Speaker 4: million dollars. 12 00:00:36,800 --> 00:00:38,520 Speaker 2: First from tech in on these markets. 13 00:00:38,720 --> 00:00:41,480 Speaker 1: And look, there is cautious training as we digest yet 14 00:00:41,520 --> 00:00:45,120 Speaker 1: another point showing that inflationary pressure is not as high 15 00:00:45,159 --> 00:00:45,680 Speaker 1: as expected. 16 00:00:45,720 --> 00:00:46,920 Speaker 2: PPI numbers come in. 17 00:00:47,159 --> 00:00:49,680 Speaker 1: Can the Fed raise not once but well cut, not 18 00:00:49,720 --> 00:00:51,440 Speaker 1: once but twice this year. 19 00:00:51,280 --> 00:00:52,120 Speaker 2: For twenty twenty five. 20 00:00:52,159 --> 00:00:54,160 Speaker 1: That's what the market price is in the bond market 21 00:00:54,400 --> 00:00:56,640 Speaker 1: pushes forward and so to TO stocks were up three. 22 00:00:56,880 --> 00:00:57,840 Speaker 2: Percent on the NASDAK. 23 00:00:58,080 --> 00:01:00,680 Speaker 1: Some big players in the chipspace the high side like 24 00:01:00,760 --> 00:01:03,279 Speaker 1: in video, but you're digging into a key chip company ed. 25 00:01:04,160 --> 00:01:08,280 Speaker 4: YEP, that's right, Caroline, I'm looking at Micron, America's biggest 26 00:01:08,280 --> 00:01:11,080 Speaker 4: memory chip maker, boosting a commitment to invest in new 27 00:01:11,120 --> 00:01:13,720 Speaker 4: capacity and R and D in the USA. The company 28 00:01:13,840 --> 00:01:17,600 Speaker 4: is investing an additional thirty billion dollars beyond previous plans 29 00:01:17,840 --> 00:01:20,440 Speaker 4: for a new memory chip plant at its home Boise, Idaho, 30 00:01:20,640 --> 00:01:24,399 Speaker 4: to modernize its Virginia facilities, and build a megafab in 31 00:01:24,480 --> 00:01:27,600 Speaker 4: New York. It's now committing two hundred billion dollars total 32 00:01:27,640 --> 00:01:31,440 Speaker 4: two US manufacturing and research projects, the previous pledge one 33 00:01:31,520 --> 00:01:34,800 Speaker 4: hundred and twenty five billion. Here's the Bloomberg Intelligence react. 34 00:01:34,920 --> 00:01:39,560 Speaker 4: Micron's large scale US investments will likely span over several decades. 35 00:01:39,800 --> 00:01:43,319 Speaker 4: Given the company's focus on cash generation and potential investor 36 00:01:43,360 --> 00:01:47,840 Speaker 4: concerns over excess capital spending, this strategically aligns with the 37 00:01:47,840 --> 00:01:51,920 Speaker 4: Trump administration. Jake Silverman, the Bloomberg Intelligence analyst on that research, 38 00:01:52,200 --> 00:01:55,720 Speaker 4: joins US now Jake net new investment thirty billion dollars. 39 00:01:55,880 --> 00:01:58,240 Speaker 4: What is your reaction to this morning's news. 40 00:01:58,800 --> 00:02:00,800 Speaker 5: Yeah, I mean, we think there's a pretty much just 41 00:02:00,800 --> 00:02:04,920 Speaker 5: a continuation of the strategy to bring domestic spending drive 42 00:02:05,000 --> 00:02:09,000 Speaker 5: capacity within the United States. So this is just a 43 00:02:09,200 --> 00:02:12,720 Speaker 5: you know, continuation of that R and D capital's capex 44 00:02:12,760 --> 00:02:13,119 Speaker 5: as well. 45 00:02:13,720 --> 00:02:15,720 Speaker 1: Let's talk about the R and D side a bit, 46 00:02:15,880 --> 00:02:20,040 Speaker 1: because they're promising ninety thousand jobs, whether that's indirect or direct. 47 00:02:20,200 --> 00:02:21,919 Speaker 2: But where does the R and D need to go? 48 00:02:22,000 --> 00:02:25,520 Speaker 1: Because we know they're focusing in particular on high bandwidth memory, 49 00:02:25,560 --> 00:02:27,880 Speaker 1: but that seems to be more on the manufacturing side. 50 00:02:28,240 --> 00:02:28,520 Speaker 3: Yeah. 51 00:02:28,520 --> 00:02:31,240 Speaker 5: Well, look, I mean there's continual R and D both 52 00:02:31,280 --> 00:02:34,440 Speaker 5: in terms of traditional memory for both DRAM and NAN, 53 00:02:34,639 --> 00:02:38,480 Speaker 5: but there's continual R and D both for high bandwidth 54 00:02:38,520 --> 00:02:40,960 Speaker 5: memory as well. I mean, we've seen the stack sizes 55 00:02:41,440 --> 00:02:45,280 Speaker 5: increase from eight to twelve. HBM four is expected to 56 00:02:45,280 --> 00:02:47,880 Speaker 5: come out next year. The standards have already been announced, 57 00:02:48,480 --> 00:02:51,440 Speaker 5: and beyond that we'll expect to continue to see HBM 58 00:02:51,480 --> 00:02:53,639 Speaker 5: four E, potentially HBM five and so on. 59 00:02:55,000 --> 00:02:57,760 Speaker 4: Let's go back to basics real quick, Jake. High bandwidth 60 00:02:57,760 --> 00:03:00,920 Speaker 4: memory is just stacked d RAM. For every high performance 61 00:03:01,000 --> 00:03:05,000 Speaker 4: GPU or AI accelerator card, there's a corresponding eight or 62 00:03:05,040 --> 00:03:08,200 Speaker 4: sixteen high bandwidth chips in that server tray. Why is 63 00:03:08,280 --> 00:03:10,120 Speaker 4: Micron an important player in this space? 64 00:03:10,680 --> 00:03:11,480 Speaker 3: Yeah? 65 00:03:11,520 --> 00:03:16,600 Speaker 5: Well so right now, HBM is actually there is supply constraints. 66 00:03:17,680 --> 00:03:20,880 Speaker 5: S ke Heinez is the leader. They are still struggling 67 00:03:20,880 --> 00:03:23,760 Speaker 5: to meet the demand for in videos GPUs as well 68 00:03:23,800 --> 00:03:27,799 Speaker 5: as hyperscaler A six and so Micron has also stepped 69 00:03:27,840 --> 00:03:30,760 Speaker 5: up to the plate and is offering their solutions as well, 70 00:03:31,360 --> 00:03:34,480 Speaker 5: and they're starting to gain share. Samsung has had their 71 00:03:34,520 --> 00:03:39,080 Speaker 5: own issues and so without really Samsung to plug some 72 00:03:39,120 --> 00:03:42,240 Speaker 5: of those gaps, Micron is an important supplier of HBM. 73 00:03:42,560 --> 00:03:45,280 Speaker 1: All of our stories today really signal that there is 74 00:03:45,320 --> 00:03:47,440 Speaker 1: still a lack of supply when it comes to the 75 00:03:47,480 --> 00:03:51,040 Speaker 1: genitive AI trade, rather than there being any questioning of demand, Jake, 76 00:03:51,120 --> 00:03:54,280 Speaker 1: But I wonder where the money is ultimately coming from. 77 00:03:54,360 --> 00:03:55,320 Speaker 2: Yes, they've put. 78 00:03:55,120 --> 00:03:58,040 Speaker 1: This glorious two hundred billion dollar figure out, only thirty 79 00:03:58,040 --> 00:04:00,040 Speaker 1: billion seems to be new, but they've got to pay. 80 00:03:59,920 --> 00:04:02,240 Speaker 5: For for it, right Well yeah, Look, I mean that's 81 00:04:02,280 --> 00:04:04,560 Speaker 5: why we think this is going to take several decades 82 00:04:04,600 --> 00:04:07,360 Speaker 5: to occur. I mean, they have a solid balance sheet 83 00:04:07,440 --> 00:04:10,960 Speaker 5: right now. They're focusing on continuing to generate free cash flow, 84 00:04:11,520 --> 00:04:14,560 Speaker 5: but they're not able to outlay that much cash right now, 85 00:04:14,640 --> 00:04:16,760 Speaker 5: and so obviously this is going to be a focus 86 00:04:16,800 --> 00:04:19,880 Speaker 5: over the very long term. But also if you look 87 00:04:20,080 --> 00:04:24,279 Speaker 5: the continual growth rates and memory, they still need to 88 00:04:24,320 --> 00:04:26,839 Speaker 5: invest in capacity. So in order to increase that capacity, 89 00:04:26,880 --> 00:04:28,720 Speaker 5: they're going to have to spend money, and if they 90 00:04:28,720 --> 00:04:30,400 Speaker 5: want to do that in the United States, they'll commit 91 00:04:30,440 --> 00:04:31,120 Speaker 5: some of that capital. 92 00:04:31,120 --> 00:04:31,360 Speaker 3: Here. 93 00:04:32,000 --> 00:04:36,080 Speaker 1: Jake Gray Analysis, Glue Meg Intelligence, Jake Silverman. There, let's 94 00:04:36,080 --> 00:04:39,679 Speaker 1: bring you the investor analysis now, Nazi Latango Investment CEO 95 00:04:39,720 --> 00:04:42,720 Speaker 1: and CIO. All of this Oracles numbers, which we'll get 96 00:04:42,720 --> 00:04:45,480 Speaker 1: into later in the show. The fact that we're seeing 97 00:04:45,680 --> 00:04:48,640 Speaker 1: a commitment in terms of money and investment coming from Micron, 98 00:04:48,800 --> 00:04:50,559 Speaker 1: it all signals supplies needed. 99 00:04:50,600 --> 00:04:51,799 Speaker 2: They can't build it fast enough. 100 00:04:52,640 --> 00:04:54,719 Speaker 6: You're right, Caroline, I mean, and I think we've heard 101 00:04:54,760 --> 00:04:58,520 Speaker 6: that consistently from the hyperscalers. You know, there was that 102 00:04:58,720 --> 00:05:02,239 Speaker 6: Meca dinner where Elon Musk and Larry Ellison had dinner 103 00:05:02,279 --> 00:05:05,480 Speaker 6: with Jensen Wong and just kept saying more chips, Please, 104 00:05:05,520 --> 00:05:09,560 Speaker 6: more chips. The supply constraint is the problem at the moment. 105 00:05:10,000 --> 00:05:12,440 Speaker 6: And so you know, Oracle's the largest holding in our 106 00:05:12,800 --> 00:05:14,039 Speaker 6: ETF TGLR. 107 00:05:14,800 --> 00:05:15,960 Speaker 7: It's been a great holding. 108 00:05:16,040 --> 00:05:18,640 Speaker 6: It's always a better company when Larry Ellison is involved. 109 00:05:18,640 --> 00:05:21,400 Speaker 6: But what you heard from him was that they have 110 00:05:21,520 --> 00:05:24,680 Speaker 6: had the biggest orders and demand is as good as 111 00:05:24,680 --> 00:05:27,240 Speaker 6: they've seen it. So I think you want. I think 112 00:05:27,240 --> 00:05:29,800 Speaker 6: you still want to belong this trade. Maybe not forever, 113 00:05:29,920 --> 00:05:31,520 Speaker 6: but certainly for the near term. 114 00:05:32,440 --> 00:05:33,120 Speaker 3: Nancy. 115 00:05:33,160 --> 00:05:36,000 Speaker 4: This is the promote side of the White House's promote 116 00:05:36,040 --> 00:05:39,000 Speaker 4: and protect policy when it comes to the American technology stack. 117 00:05:39,240 --> 00:05:41,320 Speaker 3: It was really interesting earlier today in London. 118 00:05:41,360 --> 00:05:45,839 Speaker 4: Rene has the arm CEO weighed in on this protect portion. 119 00:05:46,000 --> 00:05:47,160 Speaker 3: Just listen to what he had to say. 120 00:05:48,120 --> 00:05:52,680 Speaker 8: If you narrow access to technology and you force other 121 00:05:52,839 --> 00:05:56,279 Speaker 8: ecosystems to grow up, it's not good. 122 00:05:57,040 --> 00:05:58,440 Speaker 3: It makes the pie. 123 00:05:58,360 --> 00:06:01,640 Speaker 8: Smaller, if you will, and frankly, it's not very good 124 00:06:01,720 --> 00:06:03,280 Speaker 8: for consumers. 125 00:06:04,320 --> 00:06:06,919 Speaker 4: There is an interesting linkage here because on the Oracle 126 00:06:06,960 --> 00:06:10,160 Speaker 4: call you also had Larry Ellison talking about the potential 127 00:06:10,200 --> 00:06:14,719 Speaker 4: business of Chinese customers like Timo, for example, promote and protect. 128 00:06:14,800 --> 00:06:17,480 Speaker 4: As an investor, do you like the balance of that 129 00:06:17,520 --> 00:06:18,520 Speaker 4: policy right now? 130 00:06:19,839 --> 00:06:23,720 Speaker 6: Yeah, I share the concern that the administration is trying 131 00:06:23,760 --> 00:06:27,919 Speaker 6: to apply a kind of industrial policy or protectionism to 132 00:06:28,520 --> 00:06:30,440 Speaker 6: the distribution of this technology. 133 00:06:31,080 --> 00:06:32,320 Speaker 7: I think in some. 134 00:06:32,200 --> 00:06:36,080 Speaker 6: Regards ed it's prudent, But generally speaking, the US has 135 00:06:36,200 --> 00:06:40,960 Speaker 6: been has innovated around every problem for decades and decades, 136 00:06:41,040 --> 00:06:45,520 Speaker 6: so I would rather see competition allow the ecosystem to 137 00:06:45,600 --> 00:06:51,159 Speaker 6: grow and then find ways to limit the Chinese impact. 138 00:06:51,320 --> 00:06:54,760 Speaker 6: And so I'm more in agreement with yes, with that 139 00:06:54,839 --> 00:06:58,400 Speaker 6: policy of promote and protect. I think that's what you said, 140 00:06:58,400 --> 00:06:59,840 Speaker 6: but certainly the protect. 141 00:06:59,480 --> 00:07:05,080 Speaker 4: Part Oracle's obligations. It's backlog. It's kind of astonishing. Actually 142 00:07:05,680 --> 00:07:10,200 Speaker 4: the story's really changed for that company. Just give me 143 00:07:10,240 --> 00:07:12,000 Speaker 4: a bit more on the thesis. I was really interested 144 00:07:12,000 --> 00:07:14,720 Speaker 4: in how you're positioning with Oracle, but also like, did 145 00:07:14,720 --> 00:07:17,480 Speaker 4: something change last night? Did they jump to a different level? 146 00:07:18,440 --> 00:07:21,000 Speaker 6: They did, for sure, I think you know they've disappointed 147 00:07:21,000 --> 00:07:24,400 Speaker 6: the last two quarters. I've owned the stock for forty years, 148 00:07:24,400 --> 00:07:26,360 Speaker 6: if you can imagine, I think my average cost is 149 00:07:26,400 --> 00:07:30,600 Speaker 6: two dollars. I know, but again, it's always been a 150 00:07:30,600 --> 00:07:33,040 Speaker 6: better company when Larry Ellison is engaged. I don't know 151 00:07:33,080 --> 00:07:36,160 Speaker 6: if you heard the recent he's you know, writing code now. 152 00:07:36,240 --> 00:07:37,200 Speaker 7: He is in his eighties. 153 00:07:37,240 --> 00:07:39,480 Speaker 6: But if money can buy longevity, I think this is 154 00:07:40,000 --> 00:07:40,960 Speaker 6: the guy that can do it. 155 00:07:41,360 --> 00:07:43,000 Speaker 7: And so I think what you're seeing. 156 00:07:42,800 --> 00:07:46,480 Speaker 6: Is that the focus that they've had on cloud and 157 00:07:47,320 --> 00:07:49,920 Speaker 6: the way that they are involved in the cloud, which 158 00:07:49,960 --> 00:07:52,960 Speaker 6: allows them to have more flexibility than some of the 159 00:07:53,000 --> 00:07:56,080 Speaker 6: other providers. Then you've got the Cerner transaction, which I 160 00:07:56,120 --> 00:07:58,840 Speaker 6: think is really interesting and not talked about very much 161 00:07:58,920 --> 00:08:01,239 Speaker 6: the whole health care aspect. 162 00:08:01,360 --> 00:08:05,280 Speaker 7: Of the business. So because that is a problem, I mean. 163 00:08:05,160 --> 00:08:09,240 Speaker 6: We should be applying AI not just to pharmaceutical development, 164 00:08:09,640 --> 00:08:13,120 Speaker 6: but care and so I think there's a lot of 165 00:08:13,320 --> 00:08:16,120 Speaker 6: moving parts that are now coming together, coming to fruition, 166 00:08:16,640 --> 00:08:18,760 Speaker 6: and you're seeing it in the backlog, You're seeing it 167 00:08:18,800 --> 00:08:22,360 Speaker 6: in their enthusiasm, and that to me is you know, 168 00:08:22,520 --> 00:08:24,720 Speaker 6: reason to continue to hold the stock. Plus the dividend 169 00:08:24,760 --> 00:08:27,760 Speaker 6: growth is like ten to twelve percent annually, so you're 170 00:08:27,760 --> 00:08:30,240 Speaker 6: getting paid to enjoy the ride. 171 00:08:30,520 --> 00:08:32,640 Speaker 1: Larry, They're really speaking to the fact that they're still 172 00:08:32,760 --> 00:08:35,839 Speaker 1: supply constrained. I want to go back to supply constraints 173 00:08:35,880 --> 00:08:38,440 Speaker 1: and to do with China at the moment, we are. 174 00:08:38,360 --> 00:08:41,320 Speaker 2: So focused on rare earths at. 175 00:08:41,160 --> 00:08:44,120 Speaker 1: The moment, the minerals, the metals, and the fact that 176 00:08:44,160 --> 00:08:44,880 Speaker 1: they come from China. 177 00:08:44,920 --> 00:08:46,120 Speaker 2: I just want to pivot to Tesla. 178 00:08:46,200 --> 00:08:49,520 Speaker 1: And really this affects that humanoid robot side of the equation, 179 00:08:49,600 --> 00:08:53,480 Speaker 1: also affects EVS broadly. How much are you focusing on 180 00:08:53,600 --> 00:08:56,560 Speaker 1: Tesla and the fact that we're starting to make inroads 181 00:08:56,559 --> 00:08:58,079 Speaker 1: in the China US relationship a bit. 182 00:08:59,160 --> 00:09:02,400 Speaker 7: Yeah, I think that provided a release valve on the stock. 183 00:09:02,480 --> 00:09:03,960 Speaker 6: You know, the last time I was on with you, 184 00:09:04,040 --> 00:09:07,560 Speaker 6: we had the high school girlfriend's spat, I don't know 185 00:09:07,559 --> 00:09:10,160 Speaker 6: what you call it, romance spat right between the president 186 00:09:10,200 --> 00:09:13,720 Speaker 6: and between Elon, and the stock has come back from that. 187 00:09:14,720 --> 00:09:16,040 Speaker 7: One of the times when I was at one of. 188 00:09:16,040 --> 00:09:18,840 Speaker 6: The factories, you know, they talked about the need not 189 00:09:19,040 --> 00:09:22,880 Speaker 6: to be vertically integrated, and I think that has changed somewhat. 190 00:09:23,320 --> 00:09:25,760 Speaker 7: So I do think that, you know, we do need 191 00:09:25,800 --> 00:09:28,600 Speaker 7: to get this resolved. We do need to open up regulations. 192 00:09:28,640 --> 00:09:30,840 Speaker 6: You know, there was a cobalt plant that was that 193 00:09:31,000 --> 00:09:35,120 Speaker 6: was ten years in the regulatory nightmare of trying to 194 00:09:35,120 --> 00:09:37,959 Speaker 6: come to fruition and then they finally just walked. 195 00:09:37,679 --> 00:09:40,960 Speaker 7: Away from it. Not Tesla, but the company that was 196 00:09:41,000 --> 00:09:41,720 Speaker 7: trying to do it. 197 00:09:41,880 --> 00:09:46,319 Speaker 6: So we've got to be better at also harvesting our wearers. 198 00:09:46,400 --> 00:09:49,400 Speaker 7: And so I do think it is good news at 199 00:09:49,440 --> 00:09:49,920 Speaker 7: the margin. 200 00:09:50,040 --> 00:09:53,840 Speaker 6: But everything about Tesla right now is Robotaxi, So I 201 00:09:53,880 --> 00:09:55,800 Speaker 6: think that's what investers are paying attention to. 202 00:09:56,720 --> 00:09:59,840 Speaker 4: Ninety two weeks ago, I reported that Tesla was targeting 203 00:10:00,000 --> 00:10:05,280 Speaker 4: internally June twelfth to launch robotaxi. In Austin, then Elon 204 00:10:05,360 --> 00:10:07,720 Speaker 4: must post it an exit would be June twenty second, 205 00:10:08,160 --> 00:10:11,280 Speaker 4: but they have in the interim ramped up driverless testing 206 00:10:11,280 --> 00:10:15,400 Speaker 4: in Austin. It was just a date, but it moved 207 00:10:15,440 --> 00:10:17,760 Speaker 4: the needle for many people. Why is that date so 208 00:10:17,880 --> 00:10:20,760 Speaker 4: significant as somebody that backs the robotaxi thesis. 209 00:10:21,600 --> 00:10:24,120 Speaker 6: Yeah, because you wonder if there's something behind the scenes 210 00:10:24,160 --> 00:10:26,840 Speaker 6: that's going on. You know, there was a recent video 211 00:10:26,960 --> 00:10:30,360 Speaker 6: of the twenty twenty three accident that it just gives 212 00:10:30,360 --> 00:10:35,000 Speaker 6: people time to think about it and you know, consider 213 00:10:35,120 --> 00:10:38,079 Speaker 6: other options. But as you point out, and you've been 214 00:10:38,160 --> 00:10:40,880 Speaker 6: right on this d all the way through, if you 215 00:10:40,920 --> 00:10:43,320 Speaker 6: point out, as you point out that the cars have 216 00:10:43,440 --> 00:10:46,319 Speaker 6: been driving, you know, I live in Phoenix, Happy Year. 217 00:10:46,760 --> 00:10:50,960 Speaker 6: The waymows are everywhere. It's commonplace to us, it's not scary. 218 00:10:51,440 --> 00:10:54,040 Speaker 6: So I think I think if any company can do it, 219 00:10:54,040 --> 00:10:55,960 Speaker 6: it's this company. And if you look at Tesla on 220 00:10:56,240 --> 00:10:59,000 Speaker 6: a cost per mile, their costs are like thirty to 221 00:10:59,080 --> 00:11:02,199 Speaker 6: forty percent below away most So once they get out 222 00:11:02,240 --> 00:11:05,240 Speaker 6: there and we start to see the compounding, I think 223 00:11:05,320 --> 00:11:06,079 Speaker 6: that's going. 224 00:11:05,920 --> 00:11:08,640 Speaker 7: To be the driver of revenue growth. 225 00:11:08,679 --> 00:11:11,000 Speaker 6: And I may not be in Kathy Woods nine hundred 226 00:11:11,040 --> 00:11:13,600 Speaker 6: and fifty eight billion dollar a year CAMP. 227 00:11:13,640 --> 00:11:15,040 Speaker 7: But I do think, you know. 228 00:11:15,000 --> 00:11:17,320 Speaker 6: The ninety eight billion dollars in revenues that you're seeing, 229 00:11:17,360 --> 00:11:21,200 Speaker 6: mostly driven by EV sales, is going to shift and 230 00:11:21,280 --> 00:11:25,160 Speaker 6: we're going to see significant growth in right handling from 231 00:11:25,320 --> 00:11:27,720 Speaker 6: ROBOTAXI I just want a quick. 232 00:11:27,559 --> 00:11:28,280 Speaker 2: Question on IP. 233 00:11:28,880 --> 00:11:31,040 Speaker 1: It's an interesting story coming from Downah Hall today that 234 00:11:31,080 --> 00:11:36,160 Speaker 1: Tesla is actually suing a former engineer regarding Optimists in particular, 235 00:11:36,240 --> 00:11:38,800 Speaker 1: how much does Optimus factor into the future. 236 00:11:38,840 --> 00:11:41,440 Speaker 2: How much do we want to ensure. 237 00:11:41,120 --> 00:11:44,680 Speaker 1: That that IP remains safely within Tesla's hands. 238 00:11:45,200 --> 00:11:49,040 Speaker 6: Yeah, Caroline, I think it's one of the ex robotax 239 00:11:49,040 --> 00:11:51,080 Speaker 6: that I think is one of the most significant elements 240 00:11:51,080 --> 00:11:54,360 Speaker 6: of Tesla. They are planning to have thousands of Optimist 241 00:11:54,440 --> 00:11:55,600 Speaker 6: robots on their. 242 00:11:55,400 --> 00:11:56,600 Speaker 7: Own factory floors. 243 00:11:57,000 --> 00:12:00,600 Speaker 6: If you believe that the BLS members that we have 244 00:12:00,640 --> 00:12:06,160 Speaker 6: four hundred and fifty thousand manufacturing jobs that have gone unfilled, robots. 245 00:12:05,720 --> 00:12:06,480 Speaker 7: Are the solution. 246 00:12:06,800 --> 00:12:10,080 Speaker 6: So we need to protect that IP and they need 247 00:12:10,120 --> 00:12:13,760 Speaker 6: to be focused on producing robots. You know, Elonis famously 248 00:12:13,920 --> 00:12:18,240 Speaker 6: said the robots will make the robots that would be fantastic, 249 00:12:18,880 --> 00:12:21,199 Speaker 6: and that's really what we need to see, because if 250 00:12:21,200 --> 00:12:24,040 Speaker 6: we're moving manufacturing back to the US, we need to 251 00:12:24,080 --> 00:12:26,319 Speaker 6: have the ability to fill those jobs if we're not 252 00:12:26,360 --> 00:12:27,280 Speaker 6: going to film with people. 253 00:12:28,280 --> 00:12:32,960 Speaker 4: Nancy Tangler Laffatangler Investments, CEO and CIO, thank you very much. 254 00:12:33,880 --> 00:12:37,520 Speaker 4: Coming up, Boeing Streamliner Aircraft was involved in the worst 255 00:12:37,559 --> 00:12:40,679 Speaker 4: commercial airline crash since twenty fourteen. 256 00:12:40,960 --> 00:12:43,600 Speaker 3: We have the details names. This is Bloomberg Tech. 257 00:12:55,480 --> 00:12:55,760 Speaker 7: Time. 258 00:12:56,160 --> 00:12:58,600 Speaker 1: It is set to make its trading debut after raising 259 00:12:58,600 --> 00:13:00,480 Speaker 1: over eight hundred and sixty four million dollars in its 260 00:13:00,559 --> 00:13:03,120 Speaker 1: IPO shares indicated to jump when they open. 261 00:13:03,200 --> 00:13:05,720 Speaker 2: CEO Chris Britt joins us now for more. 262 00:13:06,080 --> 00:13:07,959 Speaker 1: How do you feel, Chris, We could see a sixty 263 00:13:08,000 --> 00:13:09,320 Speaker 1: six percent pop in the shares. 264 00:13:09,800 --> 00:13:11,600 Speaker 9: Wow, I feel great. 265 00:13:11,720 --> 00:13:13,840 Speaker 10: Today is such a momentous day for all of us 266 00:13:13,840 --> 00:13:17,040 Speaker 10: here at CHIME. We're so grateful to our members who 267 00:13:17,080 --> 00:13:19,760 Speaker 10: rely on us for their everyday banking, and I'm just 268 00:13:19,880 --> 00:13:23,520 Speaker 10: incredibly grateful for this team around me that has built 269 00:13:24,400 --> 00:13:26,680 Speaker 10: a business that we really see as ushering in a 270 00:13:26,720 --> 00:13:29,440 Speaker 10: new era for banking and one that's aligned with the 271 00:13:29,440 --> 00:13:30,840 Speaker 10: best interests of everyday members. 272 00:13:31,679 --> 00:13:33,000 Speaker 4: Chris, we made a lot on the show over the 273 00:13:33,080 --> 00:13:35,440 Speaker 4: years of the kind of the down round, the valuation 274 00:13:35,520 --> 00:13:37,280 Speaker 4: of where you went public, the timing of it. 275 00:13:37,360 --> 00:13:38,920 Speaker 3: Could you just reflect on that a little bit. 276 00:13:40,320 --> 00:13:43,040 Speaker 10: Yeah, I mean, look, we don't focus on short term 277 00:13:43,080 --> 00:13:45,520 Speaker 10: fluctuation of the stock. Even if it goes up today, 278 00:13:45,520 --> 00:13:47,080 Speaker 10: I'm sure there's going to be other days that won't 279 00:13:47,120 --> 00:13:50,640 Speaker 10: be as great. So we remain focused on the long term, 280 00:13:51,000 --> 00:13:53,679 Speaker 10: and that is being a company that's member obsessed and 281 00:13:54,200 --> 00:13:58,079 Speaker 10: focused on solving the most important needs of everyday consumers 282 00:13:58,440 --> 00:14:01,120 Speaker 10: that we serve. So I think today's going to be 283 00:14:01,200 --> 00:14:02,160 Speaker 10: a pretty exciting day. 284 00:14:02,400 --> 00:14:05,520 Speaker 1: You've got eight million plus of those consumers. Chris, How 285 00:14:05,559 --> 00:14:07,880 Speaker 1: do you increase your own revenue in the scale of 286 00:14:07,880 --> 00:14:08,280 Speaker 1: the business. 287 00:14:08,360 --> 00:14:10,440 Speaker 2: Is it more products serving them? Is it more people 288 00:14:10,480 --> 00:14:10,960 Speaker 2: coming in? 289 00:14:12,080 --> 00:14:14,600 Speaker 9: Yeah? We see multiple ways to grow. 290 00:14:14,760 --> 00:14:17,520 Speaker 10: First of all, in Q one, we grew our active 291 00:14:17,520 --> 00:14:21,280 Speaker 10: member base by over twenty three percent, so that's increasing 292 00:14:21,360 --> 00:14:22,480 Speaker 10: year over year, and at. 293 00:14:22,360 --> 00:14:24,400 Speaker 9: The same time, we continue to look. 294 00:14:24,280 --> 00:14:28,160 Speaker 10: For opportunities to offer new products that drive product attach 295 00:14:28,760 --> 00:14:33,240 Speaker 10: and lead to more primary account engagement. At Chime, two 296 00:14:33,360 --> 00:14:36,760 Speaker 10: thirds of our members use us as their primary bank account, 297 00:14:36,840 --> 00:14:39,680 Speaker 10: so they rely on us for their everyday transactions, and 298 00:14:39,720 --> 00:14:43,480 Speaker 10: we love to know as a technology company, we monetize 299 00:14:43,480 --> 00:14:47,000 Speaker 10: the relationships really through a payments driven business model, which 300 00:14:47,000 --> 00:14:49,720 Speaker 10: is very different than the way traditional banks go to market. 301 00:14:50,840 --> 00:14:53,680 Speaker 4: Chris, we love to read the risk factors section of 302 00:14:53,680 --> 00:14:54,359 Speaker 4: the RESPECTUS. 303 00:14:54,400 --> 00:14:55,600 Speaker 3: I do it all the time. 304 00:14:56,000 --> 00:15:00,000 Speaker 4: How real those risk factors for you, specifically on interchange 305 00:15:00,080 --> 00:15:01,480 Speaker 4: fees and how you're thinking about it? 306 00:15:02,720 --> 00:15:06,480 Speaker 9: Oh, we you know, I guess you know. 307 00:15:06,520 --> 00:15:09,160 Speaker 10: I'm sure there's lots of risks that the attorneys put 308 00:15:09,200 --> 00:15:13,960 Speaker 10: into the prospectus. We get questions about interchange all the time. 309 00:15:14,120 --> 00:15:18,920 Speaker 10: We really like this model of relying primarily on payments 310 00:15:19,000 --> 00:15:22,640 Speaker 10: driven revenue. That's about seventy two percent of our revenue 311 00:15:22,720 --> 00:15:24,800 Speaker 10: comes from payments, and what we like about it is 312 00:15:24,800 --> 00:15:27,480 Speaker 10: it's aligned with the best interests of our members. 313 00:15:27,880 --> 00:15:29,280 Speaker 9: We have to earn our position. 314 00:15:29,000 --> 00:15:31,280 Speaker 10: As the top of wallet card every day, and we 315 00:15:31,320 --> 00:15:34,520 Speaker 10: do it to the tune of about our average customer 316 00:15:34,560 --> 00:15:38,080 Speaker 10: does about fifty four transactions of months, so they're incredibly engaged. 317 00:15:38,120 --> 00:15:40,720 Speaker 10: And when you couple that with a digital first, low 318 00:15:40,800 --> 00:15:44,520 Speaker 10: cost structure that allows us to develop very healthy, profitable 319 00:15:44,520 --> 00:15:48,120 Speaker 10: relationships with this interchange driven business model. 320 00:15:48,320 --> 00:15:50,560 Speaker 9: The reality is that our model. 321 00:15:50,280 --> 00:15:53,560 Speaker 10: Has allowed us to offer fee free banking to millions 322 00:15:53,600 --> 00:15:55,960 Speaker 10: of consumers who otherwise we'd be paying hundreds of dollars 323 00:15:55,960 --> 00:15:57,760 Speaker 10: a year to have a bank account. 324 00:15:58,000 --> 00:16:00,800 Speaker 1: You're able to be cheaper because of AI interesting quickly 325 00:16:00,840 --> 00:16:03,840 Speaker 1: though regular to risk that those interchange fees go smaller, 326 00:16:03,840 --> 00:16:05,200 Speaker 1: particularly if you become bigger. 327 00:16:06,600 --> 00:16:10,040 Speaker 10: Well, you know, we have a balanced set of a revenue. 328 00:16:10,240 --> 00:16:14,160 Speaker 10: In the payments area. We have a debit card payments volume. 329 00:16:14,200 --> 00:16:17,080 Speaker 10: We also have a secured credit card that's actually growing 330 00:16:17,080 --> 00:16:18,440 Speaker 10: at a faster clip than debit. 331 00:16:18,600 --> 00:16:21,120 Speaker 9: So we think we're very well balanced. 332 00:16:21,280 --> 00:16:23,440 Speaker 10: And given the love and engagement we have, there's no 333 00:16:23,520 --> 00:16:26,360 Speaker 10: shortage of opportunities for us to offer new products and 334 00:16:26,400 --> 00:16:27,360 Speaker 10: services over time. 335 00:16:28,640 --> 00:16:31,840 Speaker 4: All right, Chris britt chime CEO. We're waiting for the 336 00:16:31,880 --> 00:16:34,760 Speaker 4: start of trade, but indicating a big jump at the open. 337 00:16:34,840 --> 00:16:37,400 Speaker 4: Thank you very much for joining us in Bloomberg Tech. 338 00:16:43,920 --> 00:16:46,240 Speaker 2: Welcome back to Bloomberg Tech. I'm Caroline Hide in New 339 00:16:46,320 --> 00:16:47,560 Speaker 2: York and I'm. 340 00:16:47,480 --> 00:16:49,920 Speaker 4: Ed Ludlow in San Francisco. This is what we're watching 341 00:16:50,360 --> 00:16:52,760 Speaker 4: in the markets. Earlier in the show, we brought you 342 00:16:52,840 --> 00:16:55,800 Speaker 4: details of the Air India crash at Boeing seven eighty 343 00:16:55,880 --> 00:16:58,640 Speaker 4: seven that has crashed in India. It was bound for 344 00:16:58,680 --> 00:17:03,040 Speaker 4: London and two hundred pter are either assumed dead missing. 345 00:17:03,880 --> 00:17:06,560 Speaker 4: It was a fatal crash, the worst in many years. 346 00:17:06,760 --> 00:17:08,960 Speaker 4: As we explained earlier in the program, there's a lot 347 00:17:08,960 --> 00:17:12,040 Speaker 4: that we do not know about that incident. It is 348 00:17:12,080 --> 00:17:14,800 Speaker 4: clearly having an impact on Boeing stock, but when we 349 00:17:14,800 --> 00:17:17,280 Speaker 4: get more details, will bring them to you. In the 350 00:17:17,320 --> 00:17:21,320 Speaker 4: technology sector, Oracle and Oracle's earnings are really what's a 351 00:17:21,400 --> 00:17:25,160 Speaker 4: driver in this market right now. The projection is top 352 00:17:25,200 --> 00:17:28,680 Speaker 4: line growth of seventy seven zero percent within this fiscal year, 353 00:17:29,040 --> 00:17:33,440 Speaker 4: but the backlog of business obligations performance obligations is about 354 00:17:33,440 --> 00:17:35,320 Speaker 4: one hundred and thirty eight billion. You have names like 355 00:17:35,480 --> 00:17:38,280 Speaker 4: Xai as a customer. They're involved in the Stargate project. 356 00:17:38,280 --> 00:17:41,600 Speaker 4: With OpenAI stocks up fourteen percent, it's touched a fresh 357 00:17:41,600 --> 00:17:44,960 Speaker 4: record high, and it's really what's driving at least the 358 00:17:45,080 --> 00:17:47,760 Speaker 4: very technology focused indexes in the here and now. Let's 359 00:17:47,760 --> 00:17:50,240 Speaker 4: get more on those results and bring in Bloomberg's Brody 360 00:17:50,359 --> 00:17:53,399 Speaker 4: Ford and Brody. You've had a really interesting time of 361 00:17:53,480 --> 00:17:56,800 Speaker 4: late covering this company, but the numbers were really big, 362 00:17:57,119 --> 00:18:00,840 Speaker 4: particularly after two quarters. Prior to this, investors were left 363 00:18:00,880 --> 00:18:01,800 Speaker 4: really disappointed. 364 00:18:03,720 --> 00:18:06,119 Speaker 11: For many years if you said Oracle was going to 365 00:18:06,119 --> 00:18:08,919 Speaker 11: become one of the biggest cloud companies. People would have 366 00:18:09,040 --> 00:18:12,040 Speaker 11: not so nice words for you. But what's changed with 367 00:18:12,200 --> 00:18:15,640 Speaker 11: AI is that, you know, their capacity constraints, right, all 368 00:18:15,640 --> 00:18:18,840 Speaker 11: of the traditional giants, the Amazons and Microsoft and nobody 369 00:18:18,840 --> 00:18:21,600 Speaker 11: can get these data centers up fast enough. And it 370 00:18:21,680 --> 00:18:24,840 Speaker 11: really created this opportunity for Oracle and so they found that, 371 00:18:25,000 --> 00:18:27,960 Speaker 11: particularly for the AI workloads, they've been able to sign 372 00:18:27,960 --> 00:18:31,000 Speaker 11: an incredible amount of business. Of course, most of that 373 00:18:31,160 --> 00:18:33,560 Speaker 11: is still looking out. I mean, you know, you listen 374 00:18:33,560 --> 00:18:36,440 Speaker 11: to that executives on the call and they say, open 375 00:18:36,480 --> 00:18:39,320 Speaker 11: AI stargate. We're still forming it, we're still getting our 376 00:18:39,320 --> 00:18:42,159 Speaker 11: hands around it. But it's pretty clear that demand is 377 00:18:42,200 --> 00:18:42,600 Speaker 11: coming in. 378 00:18:43,280 --> 00:18:46,080 Speaker 1: Boy, didn't Larry Ellison articulate that. He said, they've caught 379 00:18:46,119 --> 00:18:48,240 Speaker 1: one particular order that basically says, I. 380 00:18:48,119 --> 00:18:49,639 Speaker 2: Want all of it, all of the capacity you. 381 00:18:49,680 --> 00:18:51,280 Speaker 1: Bring, whether it's in europehether it's in an Asia, I 382 00:18:51,320 --> 00:18:54,240 Speaker 1: want to take it. But therefore, what are the supply chain, 383 00:18:54,320 --> 00:18:58,800 Speaker 1: the headaches, the bottlenecks that they now confront exactly. 384 00:18:58,800 --> 00:19:01,640 Speaker 11: I mean, we all are familiar with the Nvidia chip shortages. 385 00:19:01,800 --> 00:19:05,000 Speaker 11: We also hear reports of you know, the folks assembling 386 00:19:05,000 --> 00:19:08,080 Speaker 11: the servers can assemble them fast enough. And so I 387 00:19:08,119 --> 00:19:10,760 Speaker 11: think the one concern is that you spend all this 388 00:19:10,920 --> 00:19:14,040 Speaker 11: money putting up these data centers and setting everything up. 389 00:19:14,640 --> 00:19:17,760 Speaker 11: But does the market for cloud in for us stabilize 390 00:19:17,800 --> 00:19:20,000 Speaker 11: two years out and now you're sitting on all this, 391 00:19:20,200 --> 00:19:23,240 Speaker 11: you know, data center capacity that maybe isn't as out 392 00:19:23,240 --> 00:19:24,720 Speaker 11: of a commodity as it is today. 393 00:19:25,760 --> 00:19:28,600 Speaker 1: Bertie Ford, as always, we thank you and all things Oracle. 394 00:19:29,080 --> 00:19:31,760 Speaker 1: Now let's turn back to Chime Financial. It's the company 395 00:19:31,800 --> 00:19:35,080 Speaker 1: that's set to make his ip IPO debut, pricing well 396 00:19:35,119 --> 00:19:38,000 Speaker 1: above the marketed range already and we're waiting for trading. 397 00:19:38,320 --> 00:19:40,720 Speaker 1: Remember they raised eight hundred and sixty four million dollars. 398 00:19:41,280 --> 00:19:43,480 Speaker 1: Just heard from the CEO, Chris Britt. We're now joined 399 00:19:43,480 --> 00:19:46,679 Speaker 1: by one of these key backers, Sean Carolyn Menlo venture 400 00:19:46,720 --> 00:19:51,360 Speaker 1: partner joins us. Now, how did you see the effectiveness 401 00:19:51,400 --> 00:19:54,480 Speaker 1: of Chime when you first were given a potential pitch 402 00:19:54,560 --> 00:19:56,920 Speaker 1: on the dot? You were early in what drew you 403 00:19:57,000 --> 00:19:57,280 Speaker 1: to it. 404 00:19:58,359 --> 00:20:00,280 Speaker 9: There's a lot to love, you know. 405 00:20:00,320 --> 00:20:02,760 Speaker 12: We always look for companies that have incredible missions and 406 00:20:02,760 --> 00:20:06,840 Speaker 12: in the case of Chime, right like uniting everyday people 407 00:20:06,880 --> 00:20:09,840 Speaker 12: to unlock financial progress. You know, instead of penalizing people 408 00:20:10,240 --> 00:20:12,640 Speaker 12: with your bank, you know, do do them a favor, right, 409 00:20:12,760 --> 00:20:15,399 Speaker 12: So I heard one of the people say, you know, 410 00:20:15,440 --> 00:20:18,840 Speaker 12: they only get time, only gets paid when you swipe 411 00:20:19,359 --> 00:20:21,200 Speaker 12: and not when you stumble. And so you know, a 412 00:20:21,240 --> 00:20:24,720 Speaker 12: mission like that that just helps everybody is fantastic to back. 413 00:20:25,600 --> 00:20:27,680 Speaker 12: But you also need an incredible team. I mean you've 414 00:20:27,720 --> 00:20:30,439 Speaker 12: talked to Chris earlier today, just what a great leader, 415 00:20:30,600 --> 00:20:33,760 Speaker 12: team builder, visionary as co founder Ryan King, you know, 416 00:20:33,840 --> 00:20:37,680 Speaker 12: exceptional technologists, and they've just built you know, great executive 417 00:20:37,720 --> 00:20:40,000 Speaker 12: management team across the board. And then of course you 418 00:20:40,040 --> 00:20:42,119 Speaker 12: need a good business model. Yeah, and I you know, 419 00:20:42,200 --> 00:20:45,080 Speaker 12: saw some questions earlier on on the interchange and otherwise, 420 00:20:45,080 --> 00:20:46,680 Speaker 12: but you know you kind of see like, okay, we'll 421 00:20:46,720 --> 00:20:50,440 Speaker 12: just keep stacking these people. Every year new people show up, 422 00:20:50,480 --> 00:20:54,640 Speaker 12: they connect their direct deposit account, so they're very sticky customers. 423 00:20:54,720 --> 00:20:56,800 Speaker 12: Chime has, you know, got tons of features that are 424 00:20:56,800 --> 00:20:58,920 Speaker 12: just friendly for them, so they stay and they love. 425 00:20:58,920 --> 00:21:00,960 Speaker 12: It's the most beloved bank in the US right now. 426 00:21:01,000 --> 00:21:02,960 Speaker 9: So it was just a lot to love. 427 00:21:03,200 --> 00:21:05,119 Speaker 2: There's a lot to love, perhaps two loved. 428 00:21:05,320 --> 00:21:07,679 Speaker 1: Back in twenty twenty one, a lot of companies were 429 00:21:07,680 --> 00:21:10,800 Speaker 1: two loved, they got given two high evaluations and then 430 00:21:10,800 --> 00:21:13,800 Speaker 1: it's been difficult selling and pricing and ipo into that. 431 00:21:14,119 --> 00:21:15,200 Speaker 2: How does it feel when you're going to. 432 00:21:15,119 --> 00:21:18,840 Speaker 1: See the stock potentially wallop up almost two thirds, but 433 00:21:19,040 --> 00:21:20,120 Speaker 1: it is still a down round. 434 00:21:22,480 --> 00:21:24,840 Speaker 12: I blame the financial markets, not the companies in that 435 00:21:24,880 --> 00:21:25,840 Speaker 12: particular case. 436 00:21:25,720 --> 00:21:27,600 Speaker 1: Right, And do you blame the vcs the people who 437 00:21:27,600 --> 00:21:28,560 Speaker 1: are in pricing. 438 00:21:28,240 --> 00:21:28,720 Speaker 2: To that find? 439 00:21:28,760 --> 00:21:31,320 Speaker 12: You just have to you know, play the game as 440 00:21:31,320 --> 00:21:33,920 Speaker 12: it's played, right, Like our job is to invest limited 441 00:21:33,920 --> 00:21:36,199 Speaker 12: partner capital. We try to pace it over time, you know, 442 00:21:36,320 --> 00:21:38,359 Speaker 12: so we don't buy everything at the peak, but you 443 00:21:38,480 --> 00:21:41,720 Speaker 12: just never know when peaks and troughs are going to happen. 444 00:21:41,760 --> 00:21:43,919 Speaker 12: What you can do is make sure you're investing in 445 00:21:43,960 --> 00:21:47,760 Speaker 12: just really great companies and you know, you keep an 446 00:21:47,760 --> 00:21:50,439 Speaker 12: eye on the price. Like we I've been on the 447 00:21:50,440 --> 00:21:53,120 Speaker 12: board for seven years now, Menlo has been invested. 448 00:21:54,119 --> 00:21:55,560 Speaker 9: Chin's went around for thirteen years. 449 00:21:55,600 --> 00:21:57,760 Speaker 12: Like they're just you know, they're the second inning of 450 00:21:57,760 --> 00:22:00,000 Speaker 12: the baseball game right now getting started. So there's still 451 00:22:00,040 --> 00:22:00,520 Speaker 12: plenty to do. 452 00:22:01,440 --> 00:22:03,119 Speaker 3: Sean, it's great to have you on the show. I 453 00:22:03,400 --> 00:22:04,480 Speaker 3: ask what happens next? 454 00:22:04,560 --> 00:22:04,720 Speaker 10: Right? 455 00:22:04,800 --> 00:22:06,400 Speaker 3: You know, you just outlined the history. 456 00:22:06,880 --> 00:22:10,440 Speaker 4: Do you hold you know, the public shares or is 457 00:22:10,480 --> 00:22:14,080 Speaker 4: this just a really celebratory liquidity event for the firm 458 00:22:14,119 --> 00:22:15,040 Speaker 4: and for its LPs. 459 00:22:16,119 --> 00:22:19,000 Speaker 12: Yeah, we're just we're so grateful to you know, have 460 00:22:19,119 --> 00:22:21,600 Speaker 12: been welcome to be part of this mission and to 461 00:22:21,680 --> 00:22:24,359 Speaker 12: see this team act and you know, try to help 462 00:22:24,640 --> 00:22:26,280 Speaker 12: in a little ways that we can, but they're doing 463 00:22:26,320 --> 00:22:30,040 Speaker 12: all the hard work. But I think it's a really 464 00:22:30,040 --> 00:22:33,520 Speaker 12: happy occasion of course for ourselves. And you know, we're 465 00:22:33,920 --> 00:22:37,560 Speaker 12: investing pension funds and other funds like that, and you know, 466 00:22:37,640 --> 00:22:40,160 Speaker 12: everybody gets to celebrate when a great company does something 467 00:22:41,280 --> 00:22:44,160 Speaker 12: fantastic in the world, and especially a company like Chime 468 00:22:44,240 --> 00:22:47,000 Speaker 12: that has so many happy customers. So you know, the 469 00:22:47,080 --> 00:22:49,960 Speaker 12: rest is all noise and we'll make decisions as they go. 470 00:22:50,440 --> 00:22:53,159 Speaker 12: But you know, eventually we need to get those shares 471 00:22:53,200 --> 00:22:56,200 Speaker 12: out to our limited partners, but not going to speculate 472 00:22:56,240 --> 00:22:56,960 Speaker 12: on when they might be. 473 00:22:58,280 --> 00:23:02,200 Speaker 4: Sean you are surprised, raised or supportive of the timing 474 00:23:02,280 --> 00:23:03,400 Speaker 4: of this listing. 475 00:23:04,720 --> 00:23:05,680 Speaker 3: I was very supportive. 476 00:23:06,240 --> 00:23:09,080 Speaker 12: I think you know, in some ways, people like, oh, 477 00:23:09,160 --> 00:23:11,840 Speaker 12: the IPO market's open or the IPO market's closed. If 478 00:23:11,880 --> 00:23:15,920 Speaker 12: you're an exceptional company and you know, you look at 479 00:23:16,280 --> 00:23:16,920 Speaker 12: Chimes numbers. 480 00:23:16,960 --> 00:23:18,040 Speaker 9: They did five hundred. 481 00:23:17,800 --> 00:23:21,480 Speaker 12: Million dollars plus in Q one, you know, became profitable 482 00:23:21,520 --> 00:23:24,480 Speaker 12: eight point six million members. Right, Like this is just 483 00:23:25,400 --> 00:23:27,920 Speaker 12: it's just a strong, a strong company and it's being 484 00:23:28,000 --> 00:23:30,800 Speaker 12: run well and there's plenty more work to do, and 485 00:23:30,880 --> 00:23:33,840 Speaker 12: so yeah, you just go along for the raad. 486 00:23:34,600 --> 00:23:38,760 Speaker 1: What's interesting now is the market is pretty toppy once again. 487 00:23:38,920 --> 00:23:41,640 Speaker 1: That's perhaps what's driving the timing of the IPO. We've 488 00:23:41,640 --> 00:23:43,840 Speaker 1: got Nasmak not quite at record highs, but certainly the 489 00:23:43,880 --> 00:23:45,639 Speaker 1: SMP five hundred is very close to it. 490 00:23:46,119 --> 00:23:47,680 Speaker 2: How are things getting priced now? 491 00:23:48,240 --> 00:23:51,480 Speaker 1: Are you seeing discipline amongst your community when you're looking 492 00:23:51,480 --> 00:23:53,160 Speaker 1: for the next Chime, the next success. 493 00:23:53,320 --> 00:23:56,960 Speaker 12: Yeah, that's a great question. It really depends on the sector. 494 00:23:57,600 --> 00:24:01,600 Speaker 12: So if you know, Chime isn't necessarily AI company, So 495 00:24:01,720 --> 00:24:04,800 Speaker 12: that's a normal company that's doing great stuff. But those 496 00:24:04,840 --> 00:24:07,960 Speaker 12: are being priced i'd say rationally. The AI companies right 497 00:24:08,000 --> 00:24:11,400 Speaker 12: now are there's kind of a fever feeding frenzy. 498 00:24:11,760 --> 00:24:12,520 Speaker 9: We've been very. 499 00:24:12,400 --> 00:24:16,600 Speaker 12: Active in that sector, you know, companies like Anthropic and 500 00:24:17,000 --> 00:24:21,199 Speaker 12: many others, and so those tend to be like you know, 501 00:24:22,000 --> 00:24:24,439 Speaker 12: unlike in public markets where everybody's buying and selling in 502 00:24:24,480 --> 00:24:27,679 Speaker 12: private markets, you really just need one lead investor to 503 00:24:27,680 --> 00:24:28,640 Speaker 12: price it. 504 00:24:28,760 --> 00:24:29,800 Speaker 9: So it was a little. 505 00:24:29,600 --> 00:24:32,840 Speaker 12: Bit of Okay, you know, I want to win, you 506 00:24:32,880 --> 00:24:35,000 Speaker 12: want to win, and people bid it up. 507 00:24:36,040 --> 00:24:38,960 Speaker 4: Sean, there are tons of founders that watch this program, 508 00:24:39,040 --> 00:24:42,080 Speaker 4: tons of bench capitalists that support them as well. If 509 00:24:42,119 --> 00:24:44,160 Speaker 4: there was one kind of like case study or thing 510 00:24:44,200 --> 00:24:47,280 Speaker 4: that you felt Chime did really well that you would 511 00:24:47,280 --> 00:24:50,439 Speaker 4: appeal to your portfolio companies to emulate, what would it be? 512 00:24:52,400 --> 00:24:54,160 Speaker 9: Boy, It's never just one thing. 513 00:24:54,240 --> 00:24:56,040 Speaker 12: But I know we're we're on air, so I need 514 00:24:56,080 --> 00:24:58,800 Speaker 12: to keep a shorter than all the reasons why I 515 00:24:58,800 --> 00:25:01,840 Speaker 12: can tell you they were successful. But above all, I 516 00:25:01,840 --> 00:25:07,080 Speaker 12: think of customer obsession is the Amazon term. But you know, 517 00:25:07,160 --> 00:25:11,840 Speaker 12: Chime really embodies that. They've always spent time with their 518 00:25:11,840 --> 00:25:15,080 Speaker 12: customers figuring out, you know, what are their actual needs, 519 00:25:15,160 --> 00:25:18,160 Speaker 12: not perceived needs, and always have been launching future after 520 00:25:18,240 --> 00:25:19,680 Speaker 12: feature which. 521 00:25:20,920 --> 00:25:21,840 Speaker 9: Serves those interests. 522 00:25:21,880 --> 00:25:24,800 Speaker 12: Right, So they serve everyday Americans that make under one 523 00:25:24,840 --> 00:25:27,200 Speaker 12: hundred k, Like, you know, you need liquidity, you got 524 00:25:27,240 --> 00:25:30,000 Speaker 12: to have access to here your paycheck earlier, or it's 525 00:25:30,000 --> 00:25:31,840 Speaker 12: helpful to have access to your paycheck early. It's nice 526 00:25:31,840 --> 00:25:33,560 Speaker 12: to get paid two days early. It's nice to not 527 00:25:33,600 --> 00:25:36,600 Speaker 12: get fees when you get overdrafts. So just by just 528 00:25:36,720 --> 00:25:39,840 Speaker 12: continuing to listen to that very closely, not you know, 529 00:25:40,200 --> 00:25:43,000 Speaker 12: getting worried about other things aside from making happy customers 530 00:25:43,040 --> 00:25:44,200 Speaker 12: is what builds trade companies. 531 00:25:45,240 --> 00:25:48,480 Speaker 4: Sean, Carolyn and Meno Ventures, thank you very much, thanks 532 00:25:48,480 --> 00:25:49,000 Speaker 4: for having. 533 00:25:49,720 --> 00:25:50,560 Speaker 3: As Warner Brothers. 534 00:25:50,600 --> 00:25:54,520 Speaker 4: Discovery announces plans to split the company in two. Netflix 535 00:25:54,600 --> 00:25:58,560 Speaker 4: co CEO Greg Peters says streaming and on demand services 536 00:25:58,720 --> 00:26:02,760 Speaker 4: are dominating the media landscape and wbd's decision signals a 537 00:26:02,880 --> 00:26:06,280 Speaker 4: next stage of that market. He sat down with Bloomberg 538 00:26:06,359 --> 00:26:09,720 Speaker 4: editor in chief John Mickelfwaite at the Founder's Forum Global conference. 539 00:26:10,280 --> 00:26:13,160 Speaker 13: Everything is moving the streaming, everything's moved on demand. It's 540 00:26:13,240 --> 00:26:15,919 Speaker 13: very clear that consumers want that. Then they have to 541 00:26:16,040 --> 00:26:20,320 Speaker 13: rationalize their business for that reality. And we're definitely seeing, 542 00:26:20,440 --> 00:26:22,080 Speaker 13: you know, the results of that, And I think these 543 00:26:22,080 --> 00:26:26,440 Speaker 13: are sort of inevitable, long predicted, long forecast. It changes, 544 00:26:27,320 --> 00:26:29,119 Speaker 13: So there's going to be a period of you know, 545 00:26:29,240 --> 00:26:31,879 Speaker 13: shakeout and transition associated with that. I'd say, you know, 546 00:26:31,920 --> 00:26:35,240 Speaker 13: I feel you know, we were lucky, I would say, 547 00:26:35,240 --> 00:26:39,480 Speaker 13: and the fact that we came into this new ecosystem 548 00:26:39,520 --> 00:26:42,080 Speaker 13: starting with the new model, so we don't actually have 549 00:26:42,440 --> 00:26:45,400 Speaker 13: some of the complexities or difficulties of having to navigate 550 00:26:45,440 --> 00:26:47,879 Speaker 13: through the transition because we've got a legacy business model. 551 00:26:47,920 --> 00:26:49,479 Speaker 13: So that just makes it a little bit easier for 552 00:26:49,560 --> 00:26:50,600 Speaker 13: us to. 553 00:26:50,680 --> 00:26:53,800 Speaker 3: Expect to see mergers between these legacy players. 554 00:26:54,240 --> 00:26:59,040 Speaker 13: I think that that's there's an inevitable logic to that. 555 00:27:00,040 --> 00:27:03,520 Speaker 13: And then you get to you know, every merger is 556 00:27:03,560 --> 00:27:08,000 Speaker 13: a unique opportunity, and sometimes it presents interesting complexities. There's 557 00:27:08,000 --> 00:27:11,400 Speaker 13: regulatory complexities that often are the case, and then there's 558 00:27:11,440 --> 00:27:13,399 Speaker 13: you know, the two companies have got to decide it 559 00:27:13,440 --> 00:27:15,000 Speaker 13: makes sense, you know, for them to go do it, 560 00:27:15,040 --> 00:27:17,280 Speaker 13: and there's lots of you know, I should note that 561 00:27:17,359 --> 00:27:20,520 Speaker 13: the track record around doing these large media mergers is 562 00:27:20,520 --> 00:27:23,760 Speaker 13: maybe not amazing. There's some good examples out there, but 563 00:27:23,800 --> 00:27:27,439 Speaker 13: there's some not necessarily a great ones, and so you know, 564 00:27:27,480 --> 00:27:28,960 Speaker 13: I think, you know, folks want to think long and 565 00:27:29,000 --> 00:27:30,680 Speaker 13: hard about whether or not they're in a position to 566 00:27:30,720 --> 00:27:31,120 Speaker 13: do it well. 567 00:27:31,320 --> 00:27:35,240 Speaker 6: So Netflix would likely not be a player in buying 568 00:27:35,280 --> 00:27:36,000 Speaker 6: some of these things. 569 00:27:36,119 --> 00:27:39,280 Speaker 13: You know, I think we have an obligation to explore 570 00:27:39,320 --> 00:27:41,240 Speaker 13: all of the opportunities are in front of us. 571 00:27:41,240 --> 00:27:42,720 Speaker 3: So it's hard respons. 572 00:27:44,640 --> 00:27:47,439 Speaker 13: Very, fusibly to good due diligence, but then also to 573 00:27:47,440 --> 00:27:51,280 Speaker 13: have a cold, you know, hard disciplined. Look at you know, 574 00:27:51,760 --> 00:27:53,639 Speaker 13: do we think we could do this well? And I 575 00:27:53,640 --> 00:27:55,960 Speaker 13: would just say, look like our track record is we're builders, 576 00:27:56,040 --> 00:27:56,960 Speaker 13: We're not buyers. 577 00:27:57,160 --> 00:28:04,399 Speaker 1: John Michaelswaite alongside the Netflix co CEO Greg Peters. 578 00:28:07,880 --> 00:28:11,600 Speaker 4: Nominal, a startup whose software tests hardware for space, energy 579 00:28:11,600 --> 00:28:14,480 Speaker 4: and defense companies, has raised a seventy five million dollars 580 00:28:14,520 --> 00:28:18,040 Speaker 4: Series B funding around just a year after emerging from Stealth. 581 00:28:18,320 --> 00:28:22,480 Speaker 4: It's programs analyze machines, data, find anomalies, and ensure hardware 582 00:28:22,560 --> 00:28:25,879 Speaker 4: is mission ready. Nominal CEO Camera McCord joins us in 583 00:28:25,920 --> 00:28:28,840 Speaker 4: the studio. It's so interesting because Sequoia led this round, 584 00:28:28,840 --> 00:28:31,479 Speaker 4: but you also have founders, fund Lux, General Catalysts, all 585 00:28:31,520 --> 00:28:35,520 Speaker 4: firms that are looking at the national security, national interest 586 00:28:36,320 --> 00:28:40,640 Speaker 4: portion of hardware. Right, And we kind of joked off camera, 587 00:28:40,680 --> 00:28:43,720 Speaker 4: but when I read about Nominal, I thought immediately about 588 00:28:43,760 --> 00:28:48,160 Speaker 4: like Mission Impossible seven, the submarine, the AI breaking free 589 00:28:48,200 --> 00:28:50,600 Speaker 4: of the hardware. The point is that you need to 590 00:28:50,640 --> 00:28:53,600 Speaker 4: raise these funds to do what for mission critical pieces 591 00:28:53,640 --> 00:28:54,360 Speaker 4: of infrastructure. 592 00:28:54,960 --> 00:28:57,360 Speaker 14: Yeah, it's it's good to be here ed. You know, 593 00:28:57,560 --> 00:29:01,480 Speaker 14: our vision in our mission enomenal is to redefine the 594 00:29:01,520 --> 00:29:05,560 Speaker 14: way that hardware is tested. And so, you know, we're 595 00:29:05,600 --> 00:29:08,600 Speaker 14: living in a moment right now where we believe software 596 00:29:08,640 --> 00:29:11,360 Speaker 14: is colliding with the physical world in a way that 597 00:29:11,400 --> 00:29:15,400 Speaker 14: we've never seen before. So these hardware systems are generating 598 00:29:15,440 --> 00:29:19,480 Speaker 14: more data than they ever have previously at an exponential rate. 599 00:29:20,040 --> 00:29:23,840 Speaker 14: You mentioned reindustrialization, you know, the top line is sort 600 00:29:23,840 --> 00:29:26,840 Speaker 14: of massively increasing as we look to build more and 601 00:29:26,840 --> 00:29:31,160 Speaker 14: more hardware, certainly within the United States and globally. At 602 00:29:31,240 --> 00:29:34,600 Speaker 14: one big trend we notice is the timeline that hardware 603 00:29:34,640 --> 00:29:38,320 Speaker 14: is being developed on is massively shrinking. And all of 604 00:29:38,360 --> 00:29:42,120 Speaker 14: that is an amazing you know headwind for excuse me 605 00:29:42,160 --> 00:29:46,640 Speaker 14: of tailwind phenomenal. We're raising these funds for three main reasons. 606 00:29:47,240 --> 00:29:50,760 Speaker 14: The first is to continue to serve our larger and 607 00:29:50,840 --> 00:29:53,239 Speaker 14: larger enterprise customers. We're very lucky to be serving some 608 00:29:53,280 --> 00:29:55,560 Speaker 14: of the largest hardware developers in the world right now, 609 00:29:55,920 --> 00:29:59,160 Speaker 14: and we're going to continue that. The second is we 610 00:29:59,240 --> 00:30:02,560 Speaker 14: believe to win big in this software for hardware world 611 00:30:02,920 --> 00:30:06,479 Speaker 14: requires multiple products, and so we are investing in more 612 00:30:06,520 --> 00:30:09,320 Speaker 14: products to meet customer demand and then we're going to 613 00:30:09,320 --> 00:30:10,640 Speaker 14: be growing our team aggressively. 614 00:30:11,160 --> 00:30:14,360 Speaker 4: I didn't mean the submarine reference flippantly. You know, you 615 00:30:14,400 --> 00:30:20,120 Speaker 4: were former submarine officer engineer. What prompted you to try 616 00:30:20,160 --> 00:30:21,280 Speaker 4: and crack this problem? 617 00:30:21,560 --> 00:30:24,640 Speaker 14: Yeah, yeah, thank you. I spent the first eight years 618 00:30:24,680 --> 00:30:27,080 Speaker 14: of my career as a nuclear submarine officer, spent more 619 00:30:27,080 --> 00:30:27,920 Speaker 14: than a year underwater. 620 00:30:28,080 --> 00:30:29,720 Speaker 3: I have operated with. 621 00:30:29,720 --> 00:30:32,240 Speaker 14: Mission critical technology where it counts the most, and I've 622 00:30:32,280 --> 00:30:35,760 Speaker 14: seen where it works well and frankly, where it doesn't. 623 00:30:37,040 --> 00:30:40,080 Speaker 14: And you know, the reality is, in today's world, it 624 00:30:40,160 --> 00:30:44,920 Speaker 14: is very easy to test and deploy modern software. That 625 00:30:45,040 --> 00:30:47,760 Speaker 14: same luxury does not exist for hardware, and that is 626 00:30:47,800 --> 00:30:52,160 Speaker 14: our mission to give a perspective on the national security angle. 627 00:30:52,920 --> 00:30:55,960 Speaker 14: You know, the largest tester and validator of hardware in 628 00:30:56,000 --> 00:30:58,320 Speaker 14: the entire world is the Department of Defense. They're one 629 00:30:58,360 --> 00:31:03,959 Speaker 14: of the largest customers. Phenomenal for perspective. There's you know, 630 00:31:04,000 --> 00:31:06,760 Speaker 14: it's billions of dollars that gets spent on testing and 631 00:31:06,800 --> 00:31:10,480 Speaker 14: evaluating these mission critical hardware systems. And the Air Force 632 00:31:10,520 --> 00:31:13,440 Speaker 14: Test Center, an area where nominal works employees just within 633 00:31:13,480 --> 00:31:16,080 Speaker 14: the Air Force, over thirty thousand people, all of their 634 00:31:16,160 --> 00:31:18,640 Speaker 14: jobs both uniform and civilian, is testing hardware. 635 00:31:19,040 --> 00:31:22,200 Speaker 1: Cameron, You've not only been a submarine officer, but you've 636 00:31:22,200 --> 00:31:24,320 Speaker 1: also been a congressional liaison. 637 00:31:24,800 --> 00:31:25,440 Speaker 3: So what is the. 638 00:31:25,400 --> 00:31:29,200 Speaker 1: Relationship, How direct is the relationship between you and members 639 00:31:29,240 --> 00:31:33,400 Speaker 1: of Congress, but more broadly the actual agencies and indeed 640 00:31:33,480 --> 00:31:34,560 Speaker 1: the Department of Defense. 641 00:31:36,120 --> 00:31:39,400 Speaker 14: Yeah, I've been lucky to spend time looking at this 642 00:31:39,920 --> 00:31:44,160 Speaker 14: software for hardware problem from many different angles over my career. 643 00:31:44,640 --> 00:31:48,680 Speaker 14: I'm lucky to understand how the legislative branch works, how 644 00:31:48,680 --> 00:31:51,400 Speaker 14: the Pentagon works, and I think that's really critical to 645 00:31:51,480 --> 00:31:55,680 Speaker 14: building a company at the intersection of these massive public 646 00:31:55,720 --> 00:32:00,560 Speaker 14: problems of consequence, It's very helpful to understand, you know, 647 00:32:00,600 --> 00:32:05,840 Speaker 14: how how Congress, how the Department is thinking about modernizing technology. 648 00:32:06,200 --> 00:32:10,200 Speaker 14: You know, two big trends come to mind there, given 649 00:32:10,240 --> 00:32:13,040 Speaker 14: the sort of national security backdrop of a conflict in 650 00:32:13,280 --> 00:32:17,680 Speaker 14: Ukraine and you know, rising tension with the People's Republic 651 00:32:17,760 --> 00:32:21,440 Speaker 14: of China. We're trying to build and validate hardware systems, 652 00:32:21,480 --> 00:32:24,080 Speaker 14: weapons systems faster than we ever have before. You know, 653 00:32:24,200 --> 00:32:26,280 Speaker 14: a decade is something we want to we want to 654 00:32:26,320 --> 00:32:31,600 Speaker 14: accomplish now in months, which requires testing, testing faster. And 655 00:32:31,640 --> 00:32:35,040 Speaker 14: then these systems are all autonomous they're all atriatable, they're 656 00:32:35,040 --> 00:32:35,920 Speaker 14: all software defined. 657 00:32:36,200 --> 00:32:38,040 Speaker 1: I mean, briefly, the latest headline out of a v 658 00:32:38,280 --> 00:32:41,960 Speaker 1: ABC is Israel is mulling military action against Iran. I'm interested, 659 00:32:42,000 --> 00:32:45,560 Speaker 1: Cameron on your global presence. Europe's beefing up defense too. 660 00:32:46,680 --> 00:32:50,640 Speaker 14: Absolutely, we we already are serving international customers and a 661 00:32:50,640 --> 00:32:53,160 Speaker 14: big part of this, uh this fundraise, and I think 662 00:32:53,520 --> 00:32:56,560 Speaker 14: you know Sequoia's excitement is that this is certainly not 663 00:32:56,640 --> 00:32:59,520 Speaker 14: just a US domestic opportunity. 664 00:32:59,560 --> 00:33:01,000 Speaker 3: This is a glible problem. 665 00:33:01,360 --> 00:33:04,200 Speaker 14: We're happy and we're excited to be moving more into 666 00:33:04,800 --> 00:33:07,840 Speaker 14: the EU as well as you know places like Australia 667 00:33:07,840 --> 00:33:11,120 Speaker 14: and Japan where they're they're testing and validing these systems 668 00:33:11,160 --> 00:33:11,760 Speaker 14: just as much. 669 00:33:11,600 --> 00:33:14,760 Speaker 2: As the US is camera record CEO and co foundalh Nomenal. 670 00:33:14,960 --> 00:33:16,360 Speaker 2: Great to have you on. Thank you. 671 00:33:17,080 --> 00:33:19,720 Speaker 1: Coming up, cuts to NASA's science budget, well, they could 672 00:33:19,720 --> 00:33:22,680 Speaker 1: threaten US space sed premises and be an opening for 673 00:33:22,720 --> 00:33:23,640 Speaker 1: the private sector. 674 00:33:23,840 --> 00:33:25,360 Speaker 2: That's next. As a Bloomberg Tech. 675 00:33:33,120 --> 00:33:36,120 Speaker 8: Working US love Junior. 676 00:33:43,040 --> 00:33:45,800 Speaker 4: Shares of space and defense tech firm Voyager ended their 677 00:33:45,840 --> 00:33:49,160 Speaker 4: debut trading day up eighty two percent yesterday after the 678 00:33:49,200 --> 00:33:51,520 Speaker 4: company raised three hundred and eighty three million dollars in 679 00:33:51,560 --> 00:33:53,160 Speaker 4: an upsized us IPO. 680 00:33:53,680 --> 00:33:55,480 Speaker 3: The company has been focusing. 681 00:33:55,000 --> 00:33:58,560 Speaker 4: On expanding, including through a deal with SpaceX. Voyager CEO 682 00:33:58,680 --> 00:34:01,760 Speaker 4: Dylan Taylor joined bloom yesterday and weighed in on the 683 00:34:01,760 --> 00:34:03,040 Speaker 4: competition in space. 684 00:34:04,600 --> 00:34:08,799 Speaker 8: SpaceX is a crucial player in the industry. You know, 685 00:34:08,800 --> 00:34:10,879 Speaker 8: we do business with them regularly. We have a launch 686 00:34:10,920 --> 00:34:14,000 Speaker 8: contract signed with them. So SpaceX is really important, But 687 00:34:14,000 --> 00:34:16,000 Speaker 8: there are other players in the industry that are also 688 00:34:16,040 --> 00:34:19,000 Speaker 8: doing great things. The industry is a bit unique in 689 00:34:19,000 --> 00:34:21,960 Speaker 8: the sense that we all are looking to collaborate and cooperate. 690 00:34:22,440 --> 00:34:26,400 Speaker 8: Space is very difficult and these infrastructure projects are very challenging, 691 00:34:26,440 --> 00:34:29,480 Speaker 8: and so it's perhaps a more a bit more collaborative 692 00:34:29,480 --> 00:34:32,919 Speaker 8: than other industries. And really everyone's ruining for everyone else, 693 00:34:32,960 --> 00:34:36,280 Speaker 8: I mean, and I mean that's sincerely because it's important 694 00:34:36,320 --> 00:34:39,520 Speaker 8: that we get replacements up there prior to the International 695 00:34:39,600 --> 00:34:41,160 Speaker 8: Space Station being decommissioned. 696 00:34:41,680 --> 00:34:45,520 Speaker 1: While private space companies are commanding investors attention, NASA's dominance 697 00:34:45,560 --> 00:34:48,520 Speaker 1: in space science and face is an uncertain future President 698 00:34:48,600 --> 00:34:51,960 Speaker 1: Trump's spending agenda, and it calls for reducing the agency's 699 00:34:51,960 --> 00:34:53,600 Speaker 1: science budget by roughly half. 700 00:34:53,920 --> 00:34:55,600 Speaker 2: Ramo's Lauren Grush joins. 701 00:34:55,440 --> 00:34:58,080 Speaker 1: US now, look, many would say NASA needs to be 702 00:34:58,080 --> 00:35:01,879 Speaker 1: going for the moonshots to use a better pun but they. 703 00:35:01,800 --> 00:35:04,000 Speaker 2: Should be going for extraordinary exploration. 704 00:35:04,200 --> 00:35:08,360 Speaker 1: They perhaps shouldn't be funding well testing of well certain 705 00:35:08,440 --> 00:35:12,320 Speaker 1: private companies engines. They shouldn't be actually beefing up in 706 00:35:12,360 --> 00:35:14,160 Speaker 1: terms of managers, they be stripping layers. 707 00:35:14,320 --> 00:35:17,839 Speaker 2: But is this going to the mown Schultz too well? 708 00:35:17,880 --> 00:35:20,600 Speaker 15: I think there that's kind of the question of the 709 00:35:20,640 --> 00:35:23,759 Speaker 15: moment right now, there's this fundamental tension of. 710 00:35:23,680 --> 00:35:25,319 Speaker 7: What NASA is supposed to be. 711 00:35:25,800 --> 00:35:29,000 Speaker 15: You know, for years, for decades, the agency has really 712 00:35:29,000 --> 00:35:33,399 Speaker 15: been at the forefront of you know, technology innovation, developing 713 00:35:33,440 --> 00:35:37,400 Speaker 15: the hardware that we launch and then send to to space, 714 00:35:37,480 --> 00:35:41,000 Speaker 15: even deep space. And now as this as the private 715 00:35:41,040 --> 00:35:44,560 Speaker 15: sector has taken on more of those capabilities, you know, 716 00:35:44,640 --> 00:35:49,160 Speaker 15: NASA has started to transition more into something of an incubator. 717 00:35:48,960 --> 00:35:50,600 Speaker 7: For the commercial space industry. 718 00:35:50,960 --> 00:35:52,840 Speaker 15: But one thing that it always kind of stood at 719 00:35:52,840 --> 00:35:56,280 Speaker 15: the vanguard of was science. And so with these drastic 720 00:35:56,320 --> 00:35:59,560 Speaker 15: cuts being proposed to the science budget, it really begs 721 00:35:59,600 --> 00:36:02,840 Speaker 15: the question of what is NASA's role then, Is it 722 00:36:03,000 --> 00:36:07,080 Speaker 15: supposed to be opening up the commercial sector to more opportunity, 723 00:36:07,440 --> 00:36:09,520 Speaker 15: or does it still need to go for those moonshots, 724 00:36:09,920 --> 00:36:11,160 Speaker 15: even if people aren't involved. 725 00:36:11,200 --> 00:36:14,959 Speaker 4: As you mentioned, the case study is the Perseverance rover 726 00:36:15,160 --> 00:36:18,160 Speaker 4: on Mars. We put it there and for four years 727 00:36:18,200 --> 00:36:22,400 Speaker 4: it's collected data and samples. Under these proposed cuts, we 728 00:36:22,480 --> 00:36:25,440 Speaker 4: may not now have a mission to get that sample back. 729 00:36:26,920 --> 00:36:28,359 Speaker 9: Right, So what. 730 00:36:28,560 --> 00:36:31,880 Speaker 15: The President's budget proposes is that eventually we would go 731 00:36:31,960 --> 00:36:35,560 Speaker 15: get those samples because we're going to invest in new 732 00:36:35,640 --> 00:36:39,600 Speaker 15: human missions to Mars. But you know that takes quite 733 00:36:39,640 --> 00:36:42,280 Speaker 15: some time. Anytime you put a human on a vehicle, 734 00:36:42,600 --> 00:36:47,960 Speaker 15: the development becomes much more intense, stretches longer, also risks delays. 735 00:36:48,320 --> 00:36:51,600 Speaker 15: And before we had just discussed, you know, putting people 736 00:36:51,719 --> 00:36:54,080 Speaker 15: on Mars, the idea is that we would actually send 737 00:36:54,200 --> 00:36:57,320 Speaker 15: robotic spacecraft to go pick up those samples and bring 738 00:36:57,360 --> 00:36:58,200 Speaker 15: them back to Earth. 739 00:36:58,239 --> 00:36:59,359 Speaker 7: Now that was. 740 00:36:59,360 --> 00:37:04,840 Speaker 15: Also running into a very intense and complicated process. Launching 741 00:37:05,000 --> 00:37:07,040 Speaker 15: off of Mars is just going to be one of 742 00:37:07,040 --> 00:37:12,920 Speaker 15: the most complicated and technological feats of our generation of 743 00:37:13,000 --> 00:37:17,360 Speaker 15: humanities in an entire existence. But of course what people 744 00:37:17,640 --> 00:37:19,640 Speaker 15: involved is going to make that even more complex. 745 00:37:20,120 --> 00:37:22,880 Speaker 4: Bloombergs Laar, and Grush, thank you very much. Now that 746 00:37:22,960 --> 00:37:24,759 Speaker 4: does it to this edition of Bloomberg Tech. 747 00:37:25,120 --> 00:37:27,920 Speaker 2: Don't forget to check out the podcast This Is Bloomberg