1 00:00:01,639 --> 00:00:05,960 Speaker 1: From Mahard where Innovation, Money and power Collie in Silicon 2 00:00:06,040 --> 00:00:06,920 Speaker 1: Vallet NBN. 3 00:00:07,280 --> 00:00:20,759 Speaker 2: This is Bloomberg Technology with Caroline Hide and Ed Ludlow. 4 00:00:25,840 --> 00:00:29,000 Speaker 3: I met Ludlow in San Francisco. Caroline hides off this week. 5 00:00:29,280 --> 00:00:32,040 Speaker 3: This is Bloomberg Technology coming up from the program. Apple's 6 00:00:32,120 --> 00:00:35,800 Speaker 3: Vision Pro is officially for sale. We'll discuss early demand 7 00:00:36,000 --> 00:00:39,000 Speaker 3: for the pricey product and why big names like Spotify, 8 00:00:39,120 --> 00:00:43,520 Speaker 3: Netflix in YouTube are snubbing the device, plus Forward announcing 9 00:00:43,600 --> 00:00:46,040 Speaker 3: plans for production cuts the f one to fifty lightning 10 00:00:46,040 --> 00:00:49,879 Speaker 3: electric truck. More on a weakening demand picture for evs 11 00:00:50,080 --> 00:00:53,840 Speaker 3: and the fourteen hundred employees impacted by that pullback, and 12 00:00:54,000 --> 00:00:57,240 Speaker 3: Amazon's one point four billion dollar deal for i robot 13 00:00:57,560 --> 00:01:01,280 Speaker 3: is expected to be blocked by the e use antitrust watchdog, 14 00:01:01,400 --> 00:01:04,760 Speaker 3: sending shares of the rumber maker plunging. All that and 15 00:01:04,880 --> 00:01:07,560 Speaker 3: so much more. Happy Friday. It is the end of 16 00:01:07,600 --> 00:01:09,800 Speaker 3: a shortened week because of the US holiday. This is 17 00:01:09,840 --> 00:01:13,240 Speaker 3: what financial markets look like in the technology context. And 18 00:01:13,240 --> 00:01:15,920 Speaker 3: as that one hundred upper percentage point, let's be honest. 19 00:01:15,920 --> 00:01:18,240 Speaker 3: The big story, the single name of the week has 20 00:01:18,280 --> 00:01:21,640 Speaker 3: been Apple. Catalysts are both the upside and the downside. 21 00:01:21,680 --> 00:01:24,200 Speaker 3: On a five day basis, we are up two point 22 00:01:24,200 --> 00:01:27,200 Speaker 3: four percent and we're headed for our second consecutive weeks 23 00:01:27,200 --> 00:01:29,720 Speaker 3: of gains. Remember, one big catalyst was Bank of America's 24 00:01:29,800 --> 00:01:34,280 Speaker 3: upgrade to buy with some enthusiasm about what Vision Pro 25 00:01:34,400 --> 00:01:37,679 Speaker 3: does on the hardware and services side of the top line. 26 00:01:37,800 --> 00:01:40,520 Speaker 3: For Apple, you can now place a pre order for 27 00:01:40,520 --> 00:01:43,440 Speaker 3: a Vision Pro. But if you go on the website, 28 00:01:43,520 --> 00:01:47,440 Speaker 3: you'll notice one thing. The date of delivery is getting 29 00:01:47,480 --> 00:01:49,480 Speaker 3: pushed back further and further. We have the perfect voice, 30 00:01:49,480 --> 00:01:53,240 Speaker 3: Bloomberg's chief correspondent, Mark German with us. Now, let's start 31 00:01:53,280 --> 00:01:55,920 Speaker 3: with the data we see in real time. If you 32 00:01:56,000 --> 00:01:58,760 Speaker 3: try to orso a vision Pro, right now, what do 33 00:01:58,840 --> 00:01:59,320 Speaker 3: you see? 34 00:02:00,480 --> 00:02:02,120 Speaker 1: Yeah, Ed, thanks so much for having me us always. 35 00:02:02,120 --> 00:02:02,480 Speaker 1: That's right. 36 00:02:02,520 --> 00:02:04,920 Speaker 4: The Vision Pro went on sale for pre order this 37 00:02:04,960 --> 00:02:07,640 Speaker 4: morning five am Pacific time, and right now, if you're 38 00:02:07,640 --> 00:02:09,919 Speaker 4: going to place a new order, it's likely if you're 39 00:02:10,040 --> 00:02:12,840 Speaker 4: doing it for an online delivery, not to come until 40 00:02:12,880 --> 00:02:16,480 Speaker 4: mid March. You're seeing between March eighth and March fifteenth, 41 00:02:16,520 --> 00:02:19,320 Speaker 4: for all three storage capacities two hundred and fifty six gigs, 42 00:02:19,400 --> 00:02:22,160 Speaker 4: half a terabyte, and a terabyte. Now, if you're trying 43 00:02:22,160 --> 00:02:24,520 Speaker 4: to do in store pickup. The first day of availability 44 00:02:24,560 --> 00:02:27,680 Speaker 4: is also booked up, but depending on the sizing of 45 00:02:27,760 --> 00:02:29,959 Speaker 4: the headset that you need, you do a face scan 46 00:02:30,040 --> 00:02:31,920 Speaker 4: when you order it, and it gives you a custom size. 47 00:02:31,919 --> 00:02:34,960 Speaker 4: There's about twenty five different sizes. You may be able 48 00:02:35,000 --> 00:02:37,799 Speaker 4: to get pick up in the first couple of days availability, 49 00:02:37,840 --> 00:02:39,720 Speaker 4: but for the most part, if you're doing a delivery 50 00:02:39,720 --> 00:02:41,560 Speaker 4: to your home, you're not gonna be able to get 51 00:02:41,560 --> 00:02:42,560 Speaker 4: one deep into March. 52 00:02:43,919 --> 00:02:48,440 Speaker 3: I think that you know, we're using the delivery date 53 00:02:48,639 --> 00:02:51,640 Speaker 3: as a kind of proxy for early demand, and the 54 00:02:51,720 --> 00:02:55,200 Speaker 3: vision pro is going to be initially a pro like 55 00:02:55,400 --> 00:02:59,920 Speaker 3: high price, point, small volume, niche product. But it does 56 00:03:00,120 --> 00:03:01,640 Speaker 3: seem like there is demand there. 57 00:03:03,320 --> 00:03:07,240 Speaker 4: You agree with that people are quite excited about this product. 58 00:03:07,280 --> 00:03:10,680 Speaker 4: There is absolutely demand. Now, it's unclear exactly what the 59 00:03:10,720 --> 00:03:14,400 Speaker 4: slips mean, right. It could be a combination of demand, 60 00:03:14,520 --> 00:03:18,320 Speaker 4: a combination of supply, a combination of both. You could 61 00:03:18,360 --> 00:03:23,400 Speaker 4: be seeing really low demand but really really low supply. 62 00:03:23,800 --> 00:03:27,200 Speaker 4: So it's not entirely clear what it means. But based 63 00:03:27,200 --> 00:03:29,520 Speaker 4: on what I'm seeing on X when I'm seeing on 64 00:03:29,520 --> 00:03:33,840 Speaker 4: other social media platforms, the usual suspects, so to speak, 65 00:03:33,880 --> 00:03:37,600 Speaker 4: The early adopters in the Apple community are all over 66 00:03:37,640 --> 00:03:42,000 Speaker 4: this thing. I ordered one personally, as you know, I 67 00:03:42,200 --> 00:03:46,000 Speaker 4: have a deep interest in Apple products. So it's people 68 00:03:46,160 --> 00:03:50,840 Speaker 4: sort of in my category early adopters, big time Apple fans, 69 00:03:51,080 --> 00:03:53,720 Speaker 4: people that really want to learn more about the company, 70 00:03:53,720 --> 00:03:56,760 Speaker 4: that are buying misting for now, and I imagine once 71 00:03:57,080 --> 00:04:00,320 Speaker 4: some tech enthusiasts start trying it in an Apple detail 72 00:04:00,360 --> 00:04:02,600 Speaker 4: store storing on February second, they'll get about a twenty 73 00:04:02,640 --> 00:04:06,280 Speaker 4: twenty five minute demo. You'll see sales go up as well. 74 00:04:06,320 --> 00:04:08,960 Speaker 4: On that opening weekend. They'll have some inventory for non 75 00:04:09,360 --> 00:04:12,840 Speaker 4: pre orders, but the company itself, they're expecting a pretty 76 00:04:12,840 --> 00:04:15,360 Speaker 4: strong opening couple of weeks, but for sales to taper 77 00:04:15,480 --> 00:04:18,280 Speaker 4: from there, which is what you would expect from a 78 00:04:18,360 --> 00:04:21,719 Speaker 4: new major product category at this price. The people who 79 00:04:21,760 --> 00:04:23,800 Speaker 4: want to buy this thing have been wanting to buy 80 00:04:23,839 --> 00:04:26,360 Speaker 4: it for months now, since it was introduced in June, 81 00:04:26,560 --> 00:04:28,640 Speaker 4: so they're going to get their orders in early and 82 00:04:28,680 --> 00:04:30,960 Speaker 4: then it's really going to take price cuts in new 83 00:04:31,040 --> 00:04:34,279 Speaker 4: generations of this product to really expand market share for 84 00:04:34,360 --> 00:04:36,360 Speaker 4: Apple and the VR space and make it a real 85 00:04:36,400 --> 00:04:37,039 Speaker 4: revenue maker. 86 00:04:37,920 --> 00:04:40,359 Speaker 3: Right. It follows the format of the iPhone right, you 87 00:04:40,400 --> 00:04:42,599 Speaker 3: have Vision Pro, but I guess we're waiting on the 88 00:04:42,680 --> 00:04:46,920 Speaker 3: Vision Songs Pro at a later date. The newsflow this 89 00:04:46,960 --> 00:04:49,760 Speaker 3: week has been astonishing when it comes to Apple, and 90 00:04:49,800 --> 00:04:52,200 Speaker 3: in the context of Vision Pro, we did a lot 91 00:04:52,200 --> 00:04:58,160 Speaker 3: of reporting about the developers or content creators that are 92 00:04:58,240 --> 00:05:03,520 Speaker 3: choosing not to make a Vision Pro specific application. Tell 93 00:05:03,600 --> 00:05:05,200 Speaker 3: us those names and what we've learned. 94 00:05:06,400 --> 00:05:09,200 Speaker 4: Yeah, someone deeply involved in development of the product told 95 00:05:09,240 --> 00:05:12,440 Speaker 4: me it's going to be the applications that make or 96 00:05:12,480 --> 00:05:15,680 Speaker 4: break this product. And right now you're seeing some of 97 00:05:15,720 --> 00:05:19,680 Speaker 4: the top tier platforms designing to not participate. I'll give 98 00:05:19,680 --> 00:05:20,840 Speaker 4: you three names. 99 00:05:20,520 --> 00:05:22,960 Speaker 3: Netflix, YouTube, and Spotify. 100 00:05:23,320 --> 00:05:26,719 Speaker 4: Spotify is interesting, but you can use that through the web, 101 00:05:26,720 --> 00:05:29,880 Speaker 4: and it's a music streaming service. And who really knows 102 00:05:30,160 --> 00:05:31,919 Speaker 4: or cares, to be honest, if this is going to 103 00:05:31,960 --> 00:05:34,560 Speaker 4: be a great platform for music listening. But Apple's really 104 00:05:34,800 --> 00:05:37,520 Speaker 4: positioning this as a video and a movie watching device. 105 00:05:38,040 --> 00:05:40,039 Speaker 4: And if you're not going to have YouTube or Netflix 106 00:05:40,080 --> 00:05:43,359 Speaker 4: applications on here, that's a real drawback now. So they 107 00:05:43,440 --> 00:05:47,040 Speaker 4: certainly have Max Disney plus Peacock. 108 00:05:46,960 --> 00:05:48,320 Speaker 1: ESPN, NBA, you name it. 109 00:05:48,600 --> 00:05:51,400 Speaker 4: But the two biggest streaming services in the world, right, 110 00:05:51,520 --> 00:05:54,280 Speaker 4: YouTube and Netflix not being on there is a real omission, 111 00:05:54,279 --> 00:05:57,120 Speaker 4: and it's potentially a problem for Apple out of the gate. Now, 112 00:05:57,240 --> 00:05:59,960 Speaker 4: I have some theories as to why they're not participating. 113 00:06:00,640 --> 00:06:02,800 Speaker 4: I think both are taking a wait and see approach. 114 00:06:02,920 --> 00:06:04,520 Speaker 4: In the case of Netflix, maybe they don't want to 115 00:06:04,560 --> 00:06:08,120 Speaker 4: prop up a rival in streaming who has Apple tv Plus. 116 00:06:08,520 --> 00:06:10,680 Speaker 4: But at some point you may see enough people tell 117 00:06:10,720 --> 00:06:13,280 Speaker 4: YouTube and Netflix they don't want to use their services anymore. 118 00:06:13,279 --> 00:06:15,560 Speaker 4: If you're not on the Apple Vision pro, then they'll 119 00:06:15,600 --> 00:06:17,120 Speaker 4: have to get on there. But I think that's going 120 00:06:17,200 --> 00:06:20,040 Speaker 4: to take a while. They're okay to lose one thousand users, 121 00:06:20,040 --> 00:06:22,359 Speaker 4: but if you start seeing tens of thousands of people 122 00:06:22,360 --> 00:06:24,920 Speaker 4: saying we're not going to subscribe anymore over this, they'll 123 00:06:24,960 --> 00:06:26,560 Speaker 4: have to make a change. But of course that's going 124 00:06:26,600 --> 00:06:28,680 Speaker 4: to take many many months, if not longer. 125 00:06:29,760 --> 00:06:31,680 Speaker 3: Mark. The final story I want to touch on is 126 00:06:31,680 --> 00:06:34,800 Speaker 3: in the context of the European Union. But if you're 127 00:06:34,800 --> 00:06:37,240 Speaker 3: an iPhone user and you go into a store or 128 00:06:37,440 --> 00:06:41,160 Speaker 3: grab some food, you can pay by tapping your iPhone 129 00:06:41,200 --> 00:06:44,120 Speaker 3: on the receiver. And what Apple seems to be doing 130 00:06:44,200 --> 00:06:48,360 Speaker 3: now in the context of regulatory action, is opening up 131 00:06:48,400 --> 00:06:51,960 Speaker 3: that technology to some of its competitors explain that one. 132 00:06:53,000 --> 00:06:55,400 Speaker 4: Yeah, it's interesting. So this morning, you know, the European Union, 133 00:06:55,440 --> 00:06:57,640 Speaker 4: so that Apple had agreed to open up the NFC 134 00:06:57,720 --> 00:07:01,359 Speaker 4: chip to third party payment serve. So right now, that 135 00:07:01,480 --> 00:07:04,040 Speaker 4: tap to pay feature you described ed only could work 136 00:07:04,080 --> 00:07:06,719 Speaker 4: with Apple Pay Apple service if you're a third party, 137 00:07:06,720 --> 00:07:09,560 Speaker 4: if you're a Chase, if you're an Amex, you can't 138 00:07:09,600 --> 00:07:12,360 Speaker 4: integrate your own tap to pay service using that hardware 139 00:07:12,360 --> 00:07:16,160 Speaker 4: component through your application. Now Apple sit there agreeing to 140 00:07:16,200 --> 00:07:19,080 Speaker 4: open that up to change that. It's funny because on 141 00:07:19,120 --> 00:07:21,760 Speaker 4: March seventh, they're going to be doing that anyways. Right 142 00:07:22,120 --> 00:07:24,360 Speaker 4: March seventh is when the Digital Markets Actor. 143 00:07:24,200 --> 00:07:24,880 Speaker 3: EO kicks in. 144 00:07:24,920 --> 00:07:27,600 Speaker 4: That is a requirement of the DMA to open up 145 00:07:27,640 --> 00:07:30,240 Speaker 4: things like NFC, to open up the app sort of 146 00:07:30,240 --> 00:07:31,520 Speaker 4: third party billing services. 147 00:07:31,600 --> 00:07:32,760 Speaker 1: Right, so Apple. 148 00:07:32,480 --> 00:07:35,000 Speaker 4: Basically said they're going to be doing something that they're already 149 00:07:35,000 --> 00:07:38,160 Speaker 4: planning to do in two months anyway, So not necessarily 150 00:07:38,200 --> 00:07:39,960 Speaker 4: a womin here for Apple. You know, there is a 151 00:07:39,960 --> 00:07:42,960 Speaker 4: scenario where they might lose a little royalty on Apple 152 00:07:43,000 --> 00:07:45,480 Speaker 4: Pay because of this, but if it continues to fend 153 00:07:45,480 --> 00:07:48,680 Speaker 4: off regulators and avoid multi billion dollar fines, that certainly 154 00:07:48,720 --> 00:07:49,920 Speaker 4: is a positive for the company. 155 00:07:50,880 --> 00:07:53,480 Speaker 3: Okay, Apple up eight ten percent in the session, up 156 00:07:53,480 --> 00:07:56,120 Speaker 3: two percent on the week, And I highly recommend that 157 00:07:56,200 --> 00:07:58,480 Speaker 3: you subscribe to Marks and Us there to power on 158 00:07:58,880 --> 00:08:01,600 Speaker 3: because you summarize all that on a weekly basis. Bloomberg's 159 00:08:01,600 --> 00:08:06,000 Speaker 3: Mark German, chief correspondent, turn into some breaking news just 160 00:08:06,040 --> 00:08:09,320 Speaker 3: out on the Bloomberg terminal open. AI CEO Sam Altman 161 00:08:09,760 --> 00:08:13,320 Speaker 3: is seeking billions of dollars specifically in an effort to 162 00:08:13,440 --> 00:08:16,720 Speaker 3: secure supply for AI chips. It is part of a 163 00:08:16,720 --> 00:08:21,880 Speaker 3: broader initiative that we're reporting here in Bloomberg myself and colleagues, 164 00:08:21,920 --> 00:08:25,760 Speaker 3: including Dina Bass, that the aim is to set up 165 00:08:25,800 --> 00:08:32,840 Speaker 3: a series of fabs globally plants or factories with specific 166 00:08:32,880 --> 00:08:36,600 Speaker 3: dedication to capacity for these AI chips. Let's get right 167 00:08:36,640 --> 00:08:38,840 Speaker 3: to Bloomberg's Dina Bass, one of the co bylines with 168 00:08:38,840 --> 00:08:41,760 Speaker 3: me on this story. And Dina, you know, we've done 169 00:08:41,800 --> 00:08:44,560 Speaker 3: a lot of reporting on this kind of initiative. We 170 00:08:44,720 --> 00:08:48,200 Speaker 3: know that Sam Outman was looking at chips, but actually 171 00:08:48,520 --> 00:08:52,760 Speaker 3: what's new here is the focus on capacity future capacity. 172 00:08:54,520 --> 00:08:55,280 Speaker 5: Yes, that's right. 173 00:08:55,360 --> 00:08:57,760 Speaker 6: So in the kind of week of the exam of 174 00:08:57,800 --> 00:09:00,880 Speaker 6: an ouster, we you know, add you and a couple 175 00:09:00,920 --> 00:09:04,440 Speaker 6: of other reporters reported this chip initiative, but I think 176 00:09:04,480 --> 00:09:07,200 Speaker 6: the belief or assumption was that what open ai would 177 00:09:07,240 --> 00:09:09,960 Speaker 6: be doing here similar to what Microsoft is doing, is 178 00:09:09,960 --> 00:09:12,840 Speaker 6: similar to what Google does, is similar to what aws 179 00:09:12,840 --> 00:09:17,679 Speaker 6: that Aprontat does, which is design their own artificial intelligence chips. 180 00:09:17,679 --> 00:09:20,480 Speaker 6: In reality, what we hear from our sources is that 181 00:09:20,520 --> 00:09:23,800 Speaker 6: we're often trying to address is the chip shortage, that 182 00:09:23,880 --> 00:09:27,720 Speaker 6: there's not enough fabrication capacity to make enough chips. 183 00:09:27,720 --> 00:09:28,560 Speaker 5: Now that's been. 184 00:09:28,400 --> 00:09:29,360 Speaker 1: Going on for a while. 185 00:09:29,440 --> 00:09:31,880 Speaker 5: But what open ai in m Altman want. 186 00:09:31,720 --> 00:09:35,240 Speaker 6: Will address is actually not the current shortage. It's you 187 00:09:35,280 --> 00:09:37,640 Speaker 6: know what our sources tell us at Veltman fears that 188 00:09:37,679 --> 00:09:39,720 Speaker 6: there will be a significant shortage a couple of beers 189 00:09:39,720 --> 00:09:41,400 Speaker 6: out from now. So when we come to the end 190 00:09:41,440 --> 00:09:45,120 Speaker 6: of the decade, if artificial intelligence is as pervasive as 191 00:09:45,160 --> 00:09:48,080 Speaker 6: s m Altman thinks it will be, if you remember, 192 00:09:48,120 --> 00:09:52,040 Speaker 6: he's very focused on heading towards AGI artificial general intelligence, 193 00:09:52,480 --> 00:09:55,480 Speaker 6: then there will simply not be in his view, enough 194 00:09:55,640 --> 00:09:58,400 Speaker 6: processors for what he thinks is going to go on 195 00:09:58,440 --> 00:09:59,080 Speaker 6: at that point. 196 00:10:00,280 --> 00:10:04,480 Speaker 3: There are still many questions about how mechanically this would work. Right, 197 00:10:04,760 --> 00:10:07,120 Speaker 3: you know what I'm hearing you're hearing is that there's 198 00:10:07,160 --> 00:10:10,360 Speaker 3: all these talks with all kinds of investors to raise 199 00:10:10,880 --> 00:10:13,880 Speaker 3: a huge sum of money, tens and tens of billions 200 00:10:13,880 --> 00:10:16,680 Speaker 3: of dollars. But in reality, it's not just as simple 201 00:10:16,679 --> 00:10:18,720 Speaker 3: as saying, Okay, great, we've got the funds, let's build 202 00:10:18,720 --> 00:10:21,720 Speaker 3: a load of chip factories wherever we want. You know, 203 00:10:21,760 --> 00:10:27,200 Speaker 3: the market is dominated by TSMC, Samsung and a hopeful 204 00:10:27,280 --> 00:10:30,000 Speaker 3: newcomer and Intel. What do we know about what's on 205 00:10:30,040 --> 00:10:32,680 Speaker 3: the table here in terms of the proposed way this 206 00:10:32,760 --> 00:10:33,319 Speaker 3: would work. 207 00:10:34,440 --> 00:10:35,160 Speaker 1: So what we're. 208 00:10:35,000 --> 00:10:36,760 Speaker 6: Hearing is an otment is now on the stage of, 209 00:10:36,800 --> 00:10:39,160 Speaker 6: as you see, putting together sort of a group of partners. 210 00:10:39,160 --> 00:10:41,280 Speaker 6: So some of that is the capital the investors who 211 00:10:41,360 --> 00:10:43,280 Speaker 6: is going to fund all of this, and some of 212 00:10:43,280 --> 00:10:47,839 Speaker 6: that is talking to the existing chep fab companies. We're 213 00:10:47,880 --> 00:10:51,000 Speaker 6: not you know, we're not hearing that open AI wants to, 214 00:10:51,280 --> 00:10:54,480 Speaker 6: you know, start learning how to pour concrete or anything 215 00:10:54,640 --> 00:10:57,560 Speaker 6: like that. This is a really complicated business with really 216 00:10:57,640 --> 00:11:01,080 Speaker 6: just about three competitors in it, and you know, it 217 00:11:01,120 --> 00:11:03,360 Speaker 6: takes a ton of expertise to do. So what we're 218 00:11:03,400 --> 00:11:06,320 Speaker 6: hearing is that the idea would be to work with 219 00:11:06,520 --> 00:11:09,000 Speaker 6: the people that know how to do this, but again 220 00:11:09,080 --> 00:11:12,960 Speaker 6: to figure out a way to dramatically expand the capacity 221 00:11:13,120 --> 00:11:16,480 Speaker 6: so that five years from now the industry doesn't find 222 00:11:16,480 --> 00:11:19,720 Speaker 6: that it's not in a position to produce what's necessary 223 00:11:19,880 --> 00:11:20,840 Speaker 6: an arm to view. 224 00:11:22,120 --> 00:11:28,440 Speaker 3: I just want to relate to our audience that open Ai, Intel, SoftBank, TSMC, Microsoft, 225 00:11:29,200 --> 00:11:31,400 Speaker 3: and G forty two, which is a firm that we 226 00:11:31,440 --> 00:11:34,640 Speaker 3: had reported in the past wanted to give Sam Outman 227 00:11:34,720 --> 00:11:38,360 Speaker 3: money for this, did not respond to Bloomboat requests to 228 00:11:38,400 --> 00:11:41,480 Speaker 3: comment or decline to comment. Samsung in particular, just a 229 00:11:41,559 --> 00:11:44,840 Speaker 3: key name in the fab space, didn't respond to our 230 00:11:44,880 --> 00:11:48,160 Speaker 3: request for comment. But the takeaway that I have is 231 00:11:48,200 --> 00:11:53,200 Speaker 3: that forget what happened with Sam Outman's short departure from 232 00:11:53,200 --> 00:11:56,560 Speaker 3: open Ai and then return He's able to go out 233 00:11:56,600 --> 00:11:59,360 Speaker 3: there and talk to people, raise money, and come up 234 00:11:59,360 --> 00:12:02,240 Speaker 3: with these big plans, which, let's be honest, this is 235 00:12:02,280 --> 00:12:06,120 Speaker 3: a bold move in the context of how chip manufacturing 236 00:12:06,160 --> 00:12:07,439 Speaker 3: actually works. 237 00:12:08,880 --> 00:12:11,920 Speaker 6: Right, absolutely, And he was obviously in Daubos this week, 238 00:12:12,000 --> 00:12:14,440 Speaker 6: so we will see if anything comes out of any 239 00:12:14,480 --> 00:12:17,360 Speaker 6: meetings there as he tries to protect together some sort 240 00:12:17,360 --> 00:12:21,160 Speaker 6: of consortium behind this. You mentioned Microsoft, you know we 241 00:12:21,240 --> 00:12:24,520 Speaker 6: have reported previously have reported again today that Often has 242 00:12:25,280 --> 00:12:28,720 Speaker 6: help talks with Microsoft about this idea and that the 243 00:12:28,760 --> 00:12:32,800 Speaker 6: software giant remains interested, you know, potentially in being being 244 00:12:32,800 --> 00:12:35,719 Speaker 6: a part of it. Again, they declined to comment as well, but. 245 00:12:36,040 --> 00:12:37,720 Speaker 5: You know what we're reporting. 246 00:12:37,720 --> 00:12:40,880 Speaker 6: In what we're reporting, you see Sam trying to put 247 00:12:40,880 --> 00:12:43,720 Speaker 6: together the pieces of what he would need to do this, 248 00:12:43,880 --> 00:12:46,680 Speaker 6: to put together financial backing. As we mentioned in the story, 249 00:12:46,720 --> 00:12:50,280 Speaker 6: they're also been talking with soft Bank and to put 250 00:12:50,320 --> 00:12:55,160 Speaker 6: together the expertise around Chippan manufacturing. And as you said, 251 00:12:55,160 --> 00:12:57,840 Speaker 6: this is a this is a much more dramatic initiative, 252 00:12:57,880 --> 00:13:02,839 Speaker 6: and there's various forecasts for the AI chip field. You know, 253 00:13:02,880 --> 00:13:04,920 Speaker 6: there are some people who feel that there will might 254 00:13:04,920 --> 00:13:07,360 Speaker 6: be enough, and there are some people that feel that 255 00:13:07,440 --> 00:13:11,240 Speaker 6: the industry is on a trajectory to increase the number 256 00:13:11,400 --> 00:13:13,000 Speaker 6: of AI chips that are manufactured. 257 00:13:13,040 --> 00:13:16,640 Speaker 7: That will be just fine, And the reality is that 258 00:13:16,679 --> 00:13:19,320 Speaker 7: will will be fun right, And all I was saying 259 00:13:19,320 --> 00:13:21,520 Speaker 7: is that what we're reporting, the reality of is that 260 00:13:21,559 --> 00:13:24,520 Speaker 7: it's the world's leading AI company trying to have a 261 00:13:24,559 --> 00:13:26,640 Speaker 7: more direct control over its supply chain. 262 00:13:26,960 --> 00:13:29,439 Speaker 3: For one of a better summary, Bloombostina Bass great to 263 00:13:29,480 --> 00:13:32,240 Speaker 3: work with you on this story. Thanks for joining the show. Now, 264 00:13:32,240 --> 00:13:35,080 Speaker 3: another story that we're tracking is Forward. It says it's 265 00:13:35,080 --> 00:13:37,280 Speaker 3: going to reduce the number of workers that are making 266 00:13:37,320 --> 00:13:40,320 Speaker 3: its F one fifty lightning truck, and that is due 267 00:13:40,320 --> 00:13:44,599 Speaker 3: to demand for electric vehicles weakening. About fourteen hundred employees 268 00:13:44,640 --> 00:13:47,200 Speaker 3: will be impacted that work on the assembly lines for 269 00:13:47,360 --> 00:13:49,160 Speaker 3: F one to fifty lightning. I want to bring in 270 00:13:49,200 --> 00:13:52,760 Speaker 3: my friend and colleague, Keith Norton out of Detroit, and Keith, 271 00:13:53,120 --> 00:13:55,560 Speaker 3: you know this is directly linked to what we already knew. 272 00:13:55,720 --> 00:13:58,680 Speaker 3: The F one fifty lightning production this year will be 273 00:13:58,800 --> 00:14:03,080 Speaker 3: half what for previously estimated. But just explain mechanics of 274 00:14:03,080 --> 00:14:04,200 Speaker 3: how they're carrying that out. 275 00:14:05,240 --> 00:14:08,120 Speaker 8: Yeah, So they are, as you said, eliminating fourteen hundred 276 00:14:08,120 --> 00:14:12,400 Speaker 8: people at the foin fifty lightning plant. Interestingly, and seven 277 00:14:12,480 --> 00:14:15,520 Speaker 8: hundred of them will move over to an internal combustion 278 00:14:15,600 --> 00:14:19,840 Speaker 8: engine plant here in Detroit that builds the Ford Bronco 279 00:14:20,040 --> 00:14:25,200 Speaker 8: suv and Ranger pickup truck because those traditional gas fueled 280 00:14:25,240 --> 00:14:28,040 Speaker 8: vehicles are selling very well. So they're adding a third 281 00:14:28,080 --> 00:14:31,200 Speaker 8: crew to that plant while going down to one shift 282 00:14:31,680 --> 00:14:34,240 Speaker 8: at the lightning plant. It really does reflect on this 283 00:14:34,360 --> 00:14:38,640 Speaker 8: weakening demand that we're seeing for electric vehicles. Sales of 284 00:14:38,720 --> 00:14:42,960 Speaker 8: electric vehicles are still up, but their growth has slowed dramatically. 285 00:14:43,080 --> 00:14:46,080 Speaker 8: UBS sees their growth at about eleven percent. 286 00:14:45,800 --> 00:14:46,840 Speaker 1: In the US this year. 287 00:14:47,240 --> 00:14:50,400 Speaker 8: Last year, electric vehicle sales grew by forty seven percent. 288 00:14:51,200 --> 00:14:55,440 Speaker 3: And therein is the story, right Keith, that you know 289 00:14:55,520 --> 00:14:58,840 Speaker 3: they're saying they're still demand globally, it's just even less 290 00:14:58,880 --> 00:15:01,720 Speaker 3: than are already load exptions. And at the same time, 291 00:15:02,080 --> 00:15:03,680 Speaker 3: we've got to make sure we build enough of our 292 00:15:03,720 --> 00:15:07,800 Speaker 3: popular combustion engine cars. Tell us that the summary of 293 00:15:07,840 --> 00:15:10,320 Speaker 3: the EV story with Forward, all I see is lightning, 294 00:15:10,520 --> 00:15:13,720 Speaker 3: and all I see is Marqi, n Okay transit. What 295 00:15:13,800 --> 00:15:15,760 Speaker 3: are their bigger picture plans from this point? You and 296 00:15:15,800 --> 00:15:18,200 Speaker 3: I did a lot of reporting on that historically, but 297 00:15:18,360 --> 00:15:20,720 Speaker 3: things kind of seem a bit stale. 298 00:15:21,840 --> 00:15:25,200 Speaker 8: Yeah, So what they have is their first Gen EV 299 00:15:25,600 --> 00:15:29,200 Speaker 8: vehicles out there, which you know arrived, as you recall 300 00:15:29,360 --> 00:15:32,160 Speaker 8: ed with a lot of fanfare, but they've really slowed. 301 00:15:32,160 --> 00:15:35,840 Speaker 8: They've also cut production of the Mustang Maqui. There's incentives 302 00:15:35,880 --> 00:15:39,280 Speaker 8: on that. Now they're really talking up their next Gen 303 00:15:39,480 --> 00:15:43,440 Speaker 8: EV vehicles, which will be ground up electric vehicles with 304 00:15:43,520 --> 00:15:48,000 Speaker 8: all kinds of digital capabilities that are, you know, to 305 00:15:48,080 --> 00:15:52,520 Speaker 8: be discovered by consumers, but they promised they'll be very exciting, 306 00:15:52,800 --> 00:15:55,880 Speaker 8: but those are still a ways away twenty twenty five, 307 00:15:56,000 --> 00:15:58,880 Speaker 8: twenty twenty six, and that's one of the reasons uvs 308 00:15:58,920 --> 00:16:02,480 Speaker 8: actually cut forward week to hold from buy. They feel 309 00:16:02,480 --> 00:16:05,440 Speaker 8: like the payoff fund forwards EV strategy is going to 310 00:16:05,480 --> 00:16:06,560 Speaker 8: take longer than expected. 311 00:16:07,440 --> 00:16:10,360 Speaker 3: All right, Bloomber's Keith Norton on the Auto beat, Adam Detroit. 312 00:16:10,360 --> 00:16:12,360 Speaker 3: It's great to catch up. Thanks for joining the program. 313 00:16:12,600 --> 00:16:15,400 Speaker 3: They're coming up here on Bloomberg Technology, and all European 314 00:16:15,440 --> 00:16:18,840 Speaker 3: commercial crew is on its way to the International Space Station, 315 00:16:18,960 --> 00:16:22,400 Speaker 3: the first time that all the seats are occupied by Europeans. 316 00:16:22,440 --> 00:16:25,520 Speaker 3: We're gonna have those details coming up next. I'm also 317 00:16:25,560 --> 00:16:28,760 Speaker 3: taking a look at shares of AMD. We're currently up 318 00:16:29,240 --> 00:16:32,080 Speaker 3: three and a half percent in the session. AMD pushing 319 00:16:32,640 --> 00:16:35,560 Speaker 3: fresh record highs and what's so interesting about it is 320 00:16:35,600 --> 00:16:40,720 Speaker 3: its outperformance relative to Nvidia. They closed a record high Thursday. 321 00:16:41,040 --> 00:16:45,440 Speaker 3: The momentum in that stock continues. It's a twelve percent 322 00:16:45,520 --> 00:16:47,160 Speaker 3: gain on the week. And this is a name that 323 00:16:47,240 --> 00:16:50,080 Speaker 3: in the next couple of weeks reports earnings. What are 324 00:16:50,080 --> 00:16:53,240 Speaker 3: we looking for? I three hundred x the AI accelerator. 325 00:16:53,440 --> 00:16:55,200 Speaker 3: What do we want to know? How many of them 326 00:16:55,200 --> 00:16:57,600 Speaker 3: are they really selling in the real world. But investors 327 00:16:57,600 --> 00:17:00,040 Speaker 3: seem really bullish around this name as one of the 328 00:17:00,080 --> 00:17:02,960 Speaker 3: picks and shovels, as Karro calls it in the AI space. 329 00:17:03,320 --> 00:17:25,480 Speaker 3: This is Bloomberg Technology three two one significant bid for power. 330 00:17:32,080 --> 00:17:36,040 Speaker 3: They're on the way SpaceX rocket blasting off yesterday carrying 331 00:17:36,440 --> 00:17:40,359 Speaker 3: the first all European commercial crew to the International Space Station. 332 00:17:40,440 --> 00:17:43,800 Speaker 3: It's a landmark mission for europe space industry, which frankly 333 00:17:43,840 --> 00:17:47,080 Speaker 3: has been struggling to get off the ground due to 334 00:17:47,119 --> 00:17:49,639 Speaker 3: a number of delays on the launch system side. I 335 00:17:49,720 --> 00:17:53,560 Speaker 3: want to bring in Bloomberg Space correspondent Lauren Grush. You know, 336 00:17:53,640 --> 00:17:57,480 Speaker 3: this is kind of business is normal for SpaceX, for Axiom, 337 00:17:57,680 --> 00:18:00,560 Speaker 3: It's an important moment with an all europe And crew 338 00:18:00,840 --> 00:18:04,960 Speaker 3: and for commercial spaceflight also important. Just give us the 339 00:18:05,000 --> 00:18:06,080 Speaker 3: basics of this mission. 340 00:18:07,119 --> 00:18:10,520 Speaker 9: Sure, So this is actually the third mission for Axiom Space, 341 00:18:10,600 --> 00:18:13,120 Speaker 9: which is a company based in Houston hoping to build 342 00:18:13,160 --> 00:18:17,160 Speaker 9: their own private space stations in the future, and basically 343 00:18:17,200 --> 00:18:19,760 Speaker 9: these missions that they've been doing with SpaceX. They held 344 00:18:19,840 --> 00:18:21,879 Speaker 9: a contract to do a number of these missions to 345 00:18:21,920 --> 00:18:25,160 Speaker 9: the International Space Station. They're a bit like practice missions 346 00:18:25,160 --> 00:18:28,639 Speaker 9: pre cruiser missions to an Axiom has its own private 347 00:18:28,680 --> 00:18:31,840 Speaker 9: space station orbit which it's hoping to launch this decade, 348 00:18:31,880 --> 00:18:34,400 Speaker 9: So this is giving them kind of a dress rehearsal 349 00:18:34,720 --> 00:18:37,360 Speaker 9: for when they send humans to their own station one day. 350 00:18:38,200 --> 00:18:40,160 Speaker 3: What you said is really interesting. I kind of see 351 00:18:40,160 --> 00:18:43,919 Speaker 3: the mission as as more evidence or momentum of the 352 00:18:43,960 --> 00:18:48,040 Speaker 3: public sector space agencies handing over to the private sector 353 00:18:48,320 --> 00:18:49,879 Speaker 3: to get this done. And you know that I love 354 00:18:49,920 --> 00:18:53,520 Speaker 3: the numbers, right, SpaceX charges like what fifty five million 355 00:18:53,560 --> 00:18:56,880 Speaker 3: dollars a seat to carry people up. And then the 356 00:18:56,880 --> 00:19:00,000 Speaker 3: idea is that Axiom wants to be like the travel operator, 357 00:19:00,600 --> 00:19:02,800 Speaker 3: you know, the broker, the middle man. Is Is that 358 00:19:02,840 --> 00:19:03,520 Speaker 3: a good summary? 359 00:19:04,280 --> 00:19:07,560 Speaker 9: That's essentially what's happening with these axiomissions. And then eventually, 360 00:19:07,600 --> 00:19:10,120 Speaker 9: you know, they'll move to their own space station. But yes, 361 00:19:10,280 --> 00:19:15,199 Speaker 9: the idea is to eventually transfer kind of the or 362 00:19:15,200 --> 00:19:17,919 Speaker 9: give the keys over to the commercial space industry. You know, 363 00:19:18,000 --> 00:19:21,960 Speaker 9: right now the main destination for astronauts in lower orbit 364 00:19:22,359 --> 00:19:25,280 Speaker 9: is the International Space Station, which is overseen by NASA. 365 00:19:25,640 --> 00:19:27,960 Speaker 9: But you know, eventually the space station will have to 366 00:19:28,000 --> 00:19:31,399 Speaker 9: come down. It's destined to stay up until the end 367 00:19:31,440 --> 00:19:34,760 Speaker 9: of the decade, but the idea is eventually private space 368 00:19:34,760 --> 00:19:38,160 Speaker 9: stations will take over what the International Space Station has 369 00:19:38,320 --> 00:19:42,240 Speaker 9: provided for astronauts, and Axiom Space hopes to be one 370 00:19:42,240 --> 00:19:44,920 Speaker 9: of those companies to take over the reins when the 371 00:19:45,280 --> 00:19:47,560 Speaker 9: space station has to eventually come to its end. 372 00:19:48,400 --> 00:19:50,320 Speaker 3: Lauren, real quick. I know you cannot be in two 373 00:19:50,400 --> 00:19:52,680 Speaker 3: places at once, but while we speak, there's a key 374 00:19:53,119 --> 00:19:56,760 Speaker 3: lunar mission being carried out by Japan Space Agency. Just 375 00:19:56,800 --> 00:19:59,760 Speaker 3: give us a quick summary of what's happening above our heads. 376 00:20:00,400 --> 00:20:03,920 Speaker 9: Yes, so, this morning Japan attempted to land its first 377 00:20:04,280 --> 00:20:07,040 Speaker 9: probe on the service of the Moon, and we. 378 00:20:06,840 --> 00:20:08,360 Speaker 5: Were kind of left in a. 379 00:20:08,320 --> 00:20:11,399 Speaker 9: State of ambiguity when they said that it landed, but 380 00:20:11,440 --> 00:20:14,359 Speaker 9: they could not confirm the status of the lander. I 381 00:20:14,359 --> 00:20:17,200 Speaker 9: believe we just got confirmation that it did indeed land. 382 00:20:17,240 --> 00:20:19,600 Speaker 9: They secured a signal, but are not sure if it's 383 00:20:19,640 --> 00:20:23,240 Speaker 9: generating power with its solar panels, which is not necessarily 384 00:20:23,240 --> 00:20:25,600 Speaker 9: a good sign. I believe there is a press conference 385 00:20:25,680 --> 00:20:28,240 Speaker 9: going on as we speak, so maybe we can get 386 00:20:28,280 --> 00:20:29,960 Speaker 9: more details once I sign off. 387 00:20:29,800 --> 00:20:34,520 Speaker 3: Here from Planet Earth. For all views on space, Bloomberg's 388 00:20:34,520 --> 00:20:36,480 Speaker 3: Louren Brush it's great to have you on the program. 389 00:20:36,800 --> 00:20:39,840 Speaker 3: Next week, the story is all about earnings and into 390 00:20:39,880 --> 00:20:43,040 Speaker 3: that valuations are high and expectations are high. How does 391 00:20:43,080 --> 00:20:46,600 Speaker 3: AI God, that's a lot, isn't it factor in to 392 00:20:46,840 --> 00:20:49,919 Speaker 3: that equation? Next week in the newsflow too clear, movers 393 00:20:49,960 --> 00:20:52,240 Speaker 3: I wrote out down twenty seven percent. Amazon is hired 394 00:20:52,280 --> 00:20:57,639 Speaker 3: by half a percentage point. Bloomberg reporting that according to sources, 395 00:20:58,119 --> 00:21:02,040 Speaker 3: the EU will move to block the one point four 396 00:21:02,080 --> 00:21:07,160 Speaker 3: billion dollar acquisition by Amazon of I Robot because they 397 00:21:07,160 --> 00:21:10,479 Speaker 3: have not offered remedies and they've not addressed the EUS 398 00:21:10,560 --> 00:21:13,600 Speaker 3: concerns with arguments. And what's interesting about this. Ten days 399 00:21:13,640 --> 00:21:17,399 Speaker 3: ago the EU Competition Chief, Margaret a vest There joined 400 00:21:17,400 --> 00:21:20,000 Speaker 3: me here in this studio, and at that time we 401 00:21:20,040 --> 00:21:22,840 Speaker 3: knew that Amazon had not offered remedies, and she said, 402 00:21:22,960 --> 00:21:25,760 Speaker 3: very simply, we need to understand them, what their arguments are. 403 00:21:25,840 --> 00:21:26,600 Speaker 3: Have listened to this. 404 00:21:27,600 --> 00:21:32,719 Speaker 10: In any merger, it is so that if we have concerns, 405 00:21:32,920 --> 00:21:37,399 Speaker 10: it is for the businesses either to address these concerns 406 00:21:37,440 --> 00:21:40,800 Speaker 10: by debunking them or by addressing them by coming up 407 00:21:40,840 --> 00:21:44,080 Speaker 10: with remedies that will solve the problem. And if a 408 00:21:44,240 --> 00:21:45,879 Speaker 10: company say we will not come. 409 00:21:45,800 --> 00:21:46,600 Speaker 3: Up with remedies. 410 00:21:47,160 --> 00:21:49,680 Speaker 10: Well, then, of course we expect that they have good 411 00:21:49,800 --> 00:21:54,719 Speaker 10: arguments that our concerns should not be sustained. And we 412 00:21:54,760 --> 00:21:58,880 Speaker 10: are still in the process of assessing our concerns compared 413 00:21:58,920 --> 00:22:01,960 Speaker 10: to a situation where we do not have a remedy 414 00:22:02,080 --> 00:22:04,440 Speaker 10: to the concerns that we have have drawn up. 415 00:22:06,440 --> 00:22:09,560 Speaker 3: So that was the EU Competition Commissioner ten days ago 416 00:22:09,640 --> 00:22:12,600 Speaker 3: talking to me about this Amazon I Robot deal, saying 417 00:22:12,600 --> 00:22:15,359 Speaker 3: we don't have remedies, so we need good arguments on 418 00:22:15,400 --> 00:22:17,359 Speaker 3: why this deal should proceed. I want to bring in 419 00:22:17,359 --> 00:22:19,960 Speaker 3: Bloomberg to Mark Bergen out of London and Mark what 420 00:22:20,040 --> 00:22:22,280 Speaker 3: do we know? Because it seems like Amazon did not 421 00:22:22,400 --> 00:22:25,840 Speaker 3: have good arguments, and it also seems like the issue 422 00:22:25,920 --> 00:22:29,119 Speaker 3: here is that some kind of meeting has taken place. 423 00:22:29,520 --> 00:22:29,720 Speaker 1: You know. 424 00:22:29,760 --> 00:22:33,959 Speaker 3: Our understanding, according to sources, is that there was a 425 00:22:33,960 --> 00:22:37,480 Speaker 3: meeting between EU officials and there was a meeting between 426 00:22:37,480 --> 00:22:42,160 Speaker 3: Amazon representatives and the had been informed that the EU 427 00:22:42,160 --> 00:22:43,639 Speaker 3: intens to blot that deal. I think we're having some 428 00:22:43,680 --> 00:22:46,040 Speaker 3: issues or reporter will go back to it later on. 429 00:22:46,080 --> 00:22:48,800 Speaker 3: I want to stick with m and A and acquisitions. Valsoft, 430 00:22:48,800 --> 00:22:53,800 Speaker 3: the Montreal based company specializing in acquiring and growing vertical 431 00:22:53,840 --> 00:22:56,760 Speaker 3: software Businesses announce the closing of a one hundred and 432 00:22:56,800 --> 00:23:00,399 Speaker 3: seventy million dollar funding. Investors include Co two and Viking 433 00:23:00,800 --> 00:23:04,520 Speaker 3: Until I'd Save also CEO Sam Yusif and my good 434 00:23:04,520 --> 00:23:08,040 Speaker 3: friend Bling Vaccinali Bassak join us now and Sonali. I'm 435 00:23:08,040 --> 00:23:10,880 Speaker 3: gonna let you take it away in a second. But Sam, 436 00:23:11,400 --> 00:23:15,040 Speaker 3: this is an unusual financial transaction, so you're raising money, 437 00:23:15,280 --> 00:23:17,640 Speaker 3: but the investors are basically handing it over to you 438 00:23:17,880 --> 00:23:18,960 Speaker 3: so you can go shopping. 439 00:23:20,200 --> 00:23:23,960 Speaker 11: Yes, basically, we thanks love for having me on first, Sonali, 440 00:23:24,000 --> 00:23:25,160 Speaker 11: it's a pleasure to be here. 441 00:23:26,760 --> 00:23:27,640 Speaker 1: Basically, we're at. 442 00:23:27,520 --> 00:23:30,639 Speaker 11: A point where we twenty twenty two and twenty twenty 443 00:23:30,680 --> 00:23:34,960 Speaker 11: three were very good years for MNY with interest rates 444 00:23:35,040 --> 00:23:37,440 Speaker 11: going up, uncertainty around the economy. 445 00:23:37,920 --> 00:23:40,280 Speaker 1: For a cerin acquire like us, it was a good environment. 446 00:23:40,760 --> 00:23:45,560 Speaker 11: We deployed the capital, did really well, and we went 447 00:23:45,640 --> 00:23:48,000 Speaker 11: out to the market to you know, get additional funding 448 00:23:48,440 --> 00:23:50,080 Speaker 11: to execute on our pipeline. 449 00:23:50,160 --> 00:23:51,720 Speaker 1: And we had. 450 00:23:51,640 --> 00:23:55,200 Speaker 11: Option to raise money through equity, but we had this 451 00:23:55,520 --> 00:24:01,080 Speaker 11: offer from Kristuan Viking that involved you know, hybrid type 452 00:24:01,080 --> 00:24:05,320 Speaker 11: of arrangement where they give us money and there's a 453 00:24:05,359 --> 00:24:07,000 Speaker 11: payment in kind rather than cash. 454 00:24:07,080 --> 00:24:08,160 Speaker 1: Interest allowing us. 455 00:24:08,080 --> 00:24:13,040 Speaker 11: To preserve maximum liquidity to execute our pipeline and diminish 456 00:24:13,240 --> 00:24:16,359 Speaker 11: the dilution. Given that we had such a clear way 457 00:24:16,400 --> 00:24:19,080 Speaker 11: to allocate the capital, we decided to go with something 458 00:24:19,119 --> 00:24:21,040 Speaker 11: like that because we could increase the value of the 459 00:24:21,080 --> 00:24:26,040 Speaker 11: company and create more shareholder value that way and delay 460 00:24:26,080 --> 00:24:28,600 Speaker 11: a little bit the equity financing. 461 00:24:28,920 --> 00:24:31,720 Speaker 12: Sam tell us about the process here, because there are 462 00:24:31,720 --> 00:24:34,719 Speaker 12: a lot of questions about crossover investor big hedge funds 463 00:24:34,760 --> 00:24:38,520 Speaker 12: in the venture capital space. How hard was it to 464 00:24:38,640 --> 00:24:41,160 Speaker 12: raise money at this point in time and why did 465 00:24:41,200 --> 00:24:42,440 Speaker 12: you go to Viking in CO two. 466 00:24:43,520 --> 00:24:46,320 Speaker 1: Yeah, well, Viking was already an investor in the company. 467 00:24:46,359 --> 00:24:46,880 Speaker 1: They bought. 468 00:24:48,920 --> 00:24:53,480 Speaker 11: Fifteen percent or so equity stake back in twenty twenty 469 00:24:53,520 --> 00:24:56,720 Speaker 11: two and twenty three, and then they chose to participate 470 00:24:56,760 --> 00:25:00,480 Speaker 11: in this funding, backing us to do more what we've 471 00:25:00,480 --> 00:25:04,200 Speaker 11: been doing. Could Sue has this new crossover fund that 472 00:25:04,560 --> 00:25:06,679 Speaker 11: suited our needs perfectly? For us, It wasn't hard to 473 00:25:06,720 --> 00:25:09,679 Speaker 11: raise equity. I think there's a big divergence that's happening 474 00:25:09,680 --> 00:25:14,080 Speaker 11: in the market between you know, speculative growth and sort 475 00:25:14,119 --> 00:25:19,240 Speaker 11: of quality. Valsov's business model is around mission critical software 476 00:25:19,280 --> 00:25:24,000 Speaker 11: and the serial acquisition of these small to mid size companies. 477 00:25:24,680 --> 00:25:26,760 Speaker 1: The market is consolidating, and. 478 00:25:27,160 --> 00:25:31,320 Speaker 11: Valsov has been able to build a global platform to 479 00:25:31,359 --> 00:25:37,000 Speaker 11: be a significant player that consolidation. The market participants appreciated 480 00:25:37,000 --> 00:25:38,800 Speaker 11: that and wanted to be part of it. 481 00:25:38,880 --> 00:25:41,879 Speaker 12: Sam, what about the valuations you're seeing in the market. 482 00:25:41,920 --> 00:25:46,119 Speaker 12: Presumably they're still falling, So how are the pricing mechanisms 483 00:25:46,160 --> 00:25:47,680 Speaker 12: behind what you're buying assets for. 484 00:25:50,600 --> 00:25:52,760 Speaker 11: So what we saw happening in the market is around 485 00:25:52,800 --> 00:25:55,640 Speaker 11: the twenty twenty two you know, mid twenty twenty two 486 00:25:55,680 --> 00:25:56,960 Speaker 11: and all of twenty twenty three. 487 00:25:57,000 --> 00:25:58,240 Speaker 1: It was a good market for us. 488 00:25:58,280 --> 00:26:01,600 Speaker 11: So we're like a value is the buyer we're looking at, 489 00:26:04,200 --> 00:26:05,760 Speaker 11: you know, buying things that. 490 00:26:05,680 --> 00:26:08,040 Speaker 1: We feel could be a creative to our shareholders. 491 00:26:08,760 --> 00:26:13,119 Speaker 11: So with interest rates going up, private equity being a 492 00:26:13,160 --> 00:26:17,200 Speaker 11: little bit more cautious, the private equity portacoles doing a 493 00:26:17,240 --> 00:26:20,040 Speaker 11: little less deals, there was an exceptional environment for us 494 00:26:21,000 --> 00:26:25,600 Speaker 11: because we are cash buyers. We do deals on unlevered basis, 495 00:26:25,880 --> 00:26:31,920 Speaker 11: and we saw our record pipeline and that continues for now. 496 00:26:32,680 --> 00:26:35,520 Speaker 11: But you could see, you know, like with the rally 497 00:26:36,480 --> 00:26:41,720 Speaker 11: that's been happening in the markets, we're starting to see 498 00:26:41,720 --> 00:26:44,280 Speaker 11: a little bit more competition than we saw over the 499 00:26:44,320 --> 00:26:45,560 Speaker 11: course of twenty twenty three. 500 00:26:46,880 --> 00:26:50,040 Speaker 12: What about the potential to go public? If you think 501 00:26:50,040 --> 00:26:53,000 Speaker 12: about your own path moving forward and the rivals around you, 502 00:26:53,640 --> 00:26:56,520 Speaker 12: the potential things that you could buy. Are the public 503 00:26:56,560 --> 00:27:00,600 Speaker 12: markets attractive or are people preferring private ends. 504 00:27:01,720 --> 00:27:05,439 Speaker 11: I think for for a company like ours, the market 505 00:27:05,520 --> 00:27:08,679 Speaker 11: will be would be reactive like the private market interests 506 00:27:08,760 --> 00:27:12,320 Speaker 11: and indication of that, and I think we we it 507 00:27:12,359 --> 00:27:17,600 Speaker 11: would be our plans to execute on an IPO potentially 508 00:27:17,680 --> 00:27:19,760 Speaker 11: in the next you know, twenty four months or so, 509 00:27:20,080 --> 00:27:21,520 Speaker 11: if the opportunity. 510 00:27:21,000 --> 00:27:25,679 Speaker 3: Comes sam in the market, but also in your operations. 511 00:27:25,760 --> 00:27:28,840 Speaker 3: I got to ask, how's AI factored into all of this? 512 00:27:29,920 --> 00:27:33,600 Speaker 1: Yeah, of course it's the jury remains out. 513 00:27:33,680 --> 00:27:37,760 Speaker 11: I mean there's there's I was reading about this this 514 00:27:37,800 --> 00:27:41,200 Speaker 11: new Star by Shamat Palapatilla the eighty twenty where they're 515 00:27:41,240 --> 00:27:44,080 Speaker 11: promising to build eighty percent of the futures at ninety. 516 00:27:43,760 --> 00:27:47,440 Speaker 1: Percent less of the cost. Our feeling is we deal 517 00:27:47,480 --> 00:27:48,640 Speaker 1: in vertical. 518 00:27:48,200 --> 00:27:52,480 Speaker 11: Market software, so the integrations in a specific industry are 519 00:27:52,600 --> 00:27:58,880 Speaker 11: very difficult to replicate and give us a barrier of entry, 520 00:27:58,920 --> 00:28:01,280 Speaker 11: like we haven't seen any meaningful impag We haven't seen 521 00:28:01,320 --> 00:28:03,760 Speaker 11: any impact at all other than the fact that it's 522 00:28:03,840 --> 00:28:06,840 Speaker 11: enabled us to offer more to our customers. 523 00:28:07,920 --> 00:28:10,320 Speaker 1: For a similar price, and so far. 524 00:28:10,200 --> 00:28:14,120 Speaker 11: It's given us some efficiency in terms of we support 525 00:28:14,160 --> 00:28:14,800 Speaker 11: our customers. 526 00:28:14,840 --> 00:28:16,000 Speaker 1: There's efficiency around that. 527 00:28:16,400 --> 00:28:20,400 Speaker 11: We've seen the productivity of our developers who up significantly 528 00:28:20,480 --> 00:28:24,719 Speaker 11: and that's accelerating. The jury remains out. I think it's 529 00:28:25,040 --> 00:28:28,159 Speaker 11: still not clear, but you could see a world or 530 00:28:30,680 --> 00:28:33,960 Speaker 11: or software companies become more efficient, and you could also 531 00:28:34,000 --> 00:28:37,480 Speaker 11: see a world where software companies could become a little 532 00:28:37,480 --> 00:28:41,560 Speaker 11: bit more commodity, especially more horizontal companies. 533 00:28:42,960 --> 00:28:46,920 Speaker 3: Also CEO sam Yusef and bloomd octionality. That's thanks to 534 00:28:46,960 --> 00:28:49,680 Speaker 3: you both. Some breaking news crossing the bloom Bag terminal 535 00:28:50,040 --> 00:28:52,920 Speaker 3: within Google deep Mind. Some of its key scientists are 536 00:28:52,960 --> 00:28:56,800 Speaker 3: in talks to leave and start a new AI startup. 537 00:28:56,920 --> 00:29:00,560 Speaker 3: Bloom Bag also reporting that those scientists are well looking 538 00:29:00,600 --> 00:29:04,240 Speaker 3: at fundraising in some big numbers are involved. Let's bring 539 00:29:04,240 --> 00:29:07,840 Speaker 3: in Bloomberg smart Bergen who is out in London. Mark, 540 00:29:07,840 --> 00:29:09,560 Speaker 3: you led some of the reporting on this. What do 541 00:29:09,600 --> 00:29:09,840 Speaker 3: we know? 542 00:29:11,440 --> 00:29:13,560 Speaker 13: We don't know a great deal, but we do note 543 00:29:13,560 --> 00:29:17,000 Speaker 13: that the names are involved are two key long term 544 00:29:17,000 --> 00:29:19,640 Speaker 13: scientists at deep Mind, which is like being long long 545 00:29:19,680 --> 00:29:22,840 Speaker 13: considered probably the most leading AI research. 546 00:29:22,520 --> 00:29:25,560 Speaker 14: Lab in the world. They're based in Paris, where there's 547 00:29:25,600 --> 00:29:27,960 Speaker 14: a lot of activity around French AI. We saw the 548 00:29:28,080 --> 00:29:32,480 Speaker 14: miestrel ai, the Open AI competitor that came up last 549 00:29:32,520 --> 00:29:34,920 Speaker 14: year and it's now worth two billion. This is a round, 550 00:29:35,000 --> 00:29:38,880 Speaker 14: we've heard, an initial funding round potentially they're in talks 551 00:29:38,880 --> 00:29:42,680 Speaker 14: with investors at two hundred million euros, which is a 552 00:29:42,760 --> 00:29:46,720 Speaker 14: huge amount even for generative AI. But these are researchers 553 00:29:46,720 --> 00:29:50,440 Speaker 14: that two of them at least, that have had multiple experience. 554 00:29:50,520 --> 00:29:52,600 Speaker 14: One of them was involved with the Alpha Go paper, 555 00:29:52,640 --> 00:29:56,160 Speaker 14: if everyone remembers that from twenty sixteen, where deep Mind 556 00:29:56,200 --> 00:29:58,840 Speaker 14: built that algorithm that was the first to ever master 557 00:29:58,920 --> 00:30:01,120 Speaker 14: the game of Go, and it was the seminal work 558 00:30:01,480 --> 00:30:02,120 Speaker 14: in the field. 559 00:30:04,200 --> 00:30:06,480 Speaker 3: All right, Bluebo's Mark Bergen, who is one of the 560 00:30:06,520 --> 00:30:09,080 Speaker 3: team add in Europe and here in San Francisco reporting 561 00:30:09,120 --> 00:30:11,800 Speaker 3: out that story. And to your point, two hundred million euros, 562 00:30:11,800 --> 00:30:15,280 Speaker 3: I mean Mistrel's debut fundraising round was just north of 563 00:30:15,320 --> 00:30:18,640 Speaker 3: one hundred million US dollars. These are big sums for 564 00:30:18,760 --> 00:30:21,880 Speaker 3: a two person act that we've seen a lot of 565 00:30:21,920 --> 00:30:24,200 Speaker 3: activity around in recent months. Thank you very much. Now, 566 00:30:24,240 --> 00:30:28,120 Speaker 3: coming up here on Bloomberg Technology. We continue talking about 567 00:30:28,120 --> 00:30:30,520 Speaker 3: all things tech M and A in twenty twenty four 568 00:30:30,760 --> 00:30:33,920 Speaker 3: with Masha Butcher from day one Ventures. My goodness, as 569 00:30:33,960 --> 00:30:37,120 Speaker 3: Friday's go, there is a lot going on. That conversation 570 00:30:37,200 --> 00:30:56,120 Speaker 3: is coming up next. This is Bloomberg Technology. After the 571 00:30:56,160 --> 00:30:59,600 Speaker 3: Adobe Figma deal was called off, where do we stand 572 00:30:59,760 --> 00:31:02,240 Speaker 3: in M and A and particularly in looking ahead to 573 00:31:02,280 --> 00:31:04,200 Speaker 3: twenty twenty four? Delighted to say we're going to talk 574 00:31:04,240 --> 00:31:07,240 Speaker 3: about that with Masha Butcher in today's VC Spotlight. She 575 00:31:07,400 --> 00:31:10,200 Speaker 3: is the general partner and founder of Day one Ventures, 576 00:31:10,200 --> 00:31:13,440 Speaker 3: an early stage VC firm but with lots of asset 577 00:31:14,000 --> 00:31:19,320 Speaker 3: under management. At Masha, we got obsessed in September about 578 00:31:19,320 --> 00:31:22,560 Speaker 3: a very short lived IPO window, and then we kind 579 00:31:22,560 --> 00:31:25,400 Speaker 3: of lamented that a lot of deals got shut down. 580 00:31:25,960 --> 00:31:30,520 Speaker 3: If you're a vented catalyst with a portfolio of maturing companies, 581 00:31:30,920 --> 00:31:33,280 Speaker 3: what are your options in twenty twenty four? What do 582 00:31:33,320 --> 00:31:35,000 Speaker 3: you advise them to pursue? 583 00:31:36,800 --> 00:31:39,680 Speaker 15: I think, first of all, Pigama's banner was the most 584 00:31:39,800 --> 00:31:43,680 Speaker 15: interesting and most of important companies of our time. That's 585 00:31:43,760 --> 00:31:47,920 Speaker 15: creating a tone of value for freelancers and for early 586 00:31:47,960 --> 00:31:52,320 Speaker 15: stage entrepreneurs and for people, and this deal being call of. 587 00:31:52,520 --> 00:31:53,120 Speaker 5: Meant a lot. 588 00:31:53,200 --> 00:31:55,560 Speaker 15: I think first of all, it meant for later stage 589 00:31:55,600 --> 00:31:59,160 Speaker 15: investments that looking to invest in later stage and right 590 00:31:59,200 --> 00:32:02,680 Speaker 15: now that investors realize, as you had a deal and 591 00:32:02,720 --> 00:32:05,640 Speaker 15: there is someone who wanted to acquire your portfolio companies 592 00:32:05,680 --> 00:32:09,720 Speaker 15: and ready to pay sizeable amount for this opportunity, it 593 00:32:09,840 --> 00:32:11,400 Speaker 15: might not go through because some. 594 00:32:11,360 --> 00:32:14,120 Speaker 5: Of the regulator might not let this deal to go through. 595 00:32:15,040 --> 00:32:17,000 Speaker 15: This is first and I do think it will lead 596 00:32:17,040 --> 00:32:21,360 Speaker 15: to decreased the amount of investments in later stage. I 597 00:32:21,400 --> 00:32:23,720 Speaker 15: think for early stage it would also mean a lot. 598 00:32:24,000 --> 00:32:26,760 Speaker 15: If this deal went through, it would have been seven 599 00:32:26,800 --> 00:32:30,480 Speaker 15: billion dollars of fresh capital that it would go back 600 00:32:30,520 --> 00:32:32,400 Speaker 15: to vcs, to some of. 601 00:32:32,360 --> 00:32:34,280 Speaker 5: The early investors in Cligma. 602 00:32:34,400 --> 00:32:38,360 Speaker 15: So it's seven billion dollars that would have gone to 603 00:32:38,360 --> 00:32:41,320 Speaker 15: top tier funds and some other funds that have invested 604 00:32:41,360 --> 00:32:45,320 Speaker 15: in Figma earlier that they could reinvest in other opportunities 605 00:32:45,360 --> 00:32:47,400 Speaker 15: and right now they wouldn't be able to do so. 606 00:32:48,080 --> 00:32:49,120 Speaker 5: And I think it's. 607 00:32:49,000 --> 00:32:53,160 Speaker 15: Also influency early stage in different directions. Right now, everyone 608 00:32:53,280 --> 00:32:55,280 Speaker 15: understand if you invest in a company in a very 609 00:32:55,320 --> 00:32:58,320 Speaker 15: early stage at five to ten billion viediation like our 610 00:32:58,440 --> 00:33:01,640 Speaker 15: fund does you do still can have very good and 611 00:33:01,720 --> 00:33:05,479 Speaker 15: sizable returns because you have secondary opportunity. You could still 612 00:33:05,760 --> 00:33:07,840 Speaker 15: make a lot of money. If your company has an 613 00:33:07,800 --> 00:33:10,200 Speaker 15: advanced billion, it doesn't have to grow as far as 614 00:33:10,360 --> 00:33:13,440 Speaker 15: twenty billions. So I do think mid term it will 615 00:33:13,480 --> 00:33:17,560 Speaker 15: increase competition on early stage, on the stage where we're operating. 616 00:33:19,200 --> 00:33:22,920 Speaker 3: The AI case study is very interesting because if you 617 00:33:22,960 --> 00:33:27,880 Speaker 3: look at early private market investor enthusiasm and take some 618 00:33:27,920 --> 00:33:32,320 Speaker 3: examples like healthcare or biotech, those types of companies do 619 00:33:32,440 --> 00:33:38,000 Speaker 3: seem right for acquisition for mature or long standing publicly 620 00:33:38,040 --> 00:33:42,360 Speaker 3: traded healthcare companies, right that they could be a destination 621 00:33:43,000 --> 00:33:46,800 Speaker 3: for it. For a smaller firm with a microfocus. 622 00:33:47,560 --> 00:33:50,320 Speaker 5: Well, I think AI is very exciting. 623 00:33:50,640 --> 00:33:52,960 Speaker 15: I personally think that they are is the only way 624 00:33:53,120 --> 00:33:56,200 Speaker 15: for us to solve some of the most pressing problems 625 00:33:56,200 --> 00:34:00,920 Speaker 15: that's related to climate change, that related to some horrible 626 00:34:01,120 --> 00:34:05,080 Speaker 15: disease like cancer, and it's really there one of the 627 00:34:05,200 --> 00:34:08,239 Speaker 15: very few ways in the world to increase equality and 628 00:34:08,280 --> 00:34:11,680 Speaker 15: to give economic opportunities to let us develop places and 629 00:34:11,800 --> 00:34:15,399 Speaker 15: less develops part of the population. But I do at 630 00:34:15,400 --> 00:34:19,520 Speaker 15: the same time, if UAI company, culturally you're so different 631 00:34:19,600 --> 00:34:23,279 Speaker 15: and you operate so differently compared to the rest of 632 00:34:23,360 --> 00:34:26,880 Speaker 15: economy is that I don't think it's a good past 633 00:34:27,000 --> 00:34:30,040 Speaker 15: way for any progressive air company to be acquired by 634 00:34:30,719 --> 00:34:35,080 Speaker 15: old school big public companies invite for in any other field. 635 00:34:35,080 --> 00:34:36,759 Speaker 15: So I actually do think we will be in the 636 00:34:36,800 --> 00:34:41,600 Speaker 15: world when AI companies will be bigger than their old 637 00:34:41,640 --> 00:34:44,719 Speaker 15: school companies that's not AI companies. And I do think 638 00:34:44,800 --> 00:34:47,640 Speaker 15: that in a few years from now, I wouldn't honestly 639 00:34:47,680 --> 00:34:51,080 Speaker 15: tell you which company would be bigger Open AI, Microsoft, 640 00:34:51,120 --> 00:34:53,160 Speaker 15: I actually need to work thinking that it would be 641 00:34:53,200 --> 00:34:55,719 Speaker 15: Open AI. And we can use this analogy when we 642 00:34:55,800 --> 00:34:57,840 Speaker 15: think about any other A companies. 643 00:34:58,800 --> 00:35:01,360 Speaker 3: Musha, what is twenty twenty five all look like for you? 644 00:35:01,360 --> 00:35:02,920 Speaker 3: You know, where are you going to be focused in 645 00:35:03,000 --> 00:35:06,040 Speaker 3: writing checks? Thematically or geographically? 646 00:35:07,360 --> 00:35:12,440 Speaker 15: I'm really focused on humans my entire career from two perspectives. 647 00:35:12,440 --> 00:35:14,439 Speaker 15: On the one hand, I think there's like only one 648 00:35:14,440 --> 00:35:18,040 Speaker 15: topic right now that's as exciting for me as AI, 649 00:35:18,280 --> 00:35:21,400 Speaker 15: and this is future of human And I think there 650 00:35:21,440 --> 00:35:24,360 Speaker 15: very different things that falls into this bucket. 651 00:35:24,440 --> 00:35:27,480 Speaker 5: That can have to do with longevity and health. 652 00:35:27,560 --> 00:35:30,879 Speaker 15: It has to do with future of reproduction, it has 653 00:35:30,960 --> 00:35:32,760 Speaker 15: to do with mental health. 654 00:35:33,160 --> 00:35:35,040 Speaker 5: I do want to explore. 655 00:35:34,560 --> 00:35:37,439 Speaker 15: What it is future of human and I do think 656 00:35:37,480 --> 00:35:41,640 Speaker 15: there are different new leaders like Brian Johnson that pushing 657 00:35:41,680 --> 00:35:46,840 Speaker 15: the boundaries of what's possible. And I do think Brian 658 00:35:47,040 --> 00:35:50,759 Speaker 15: himself creating a burse for so called blueprint economy when 659 00:35:51,200 --> 00:35:52,560 Speaker 15: people will organize the. 660 00:35:52,680 --> 00:35:54,520 Speaker 5: Entire lifestyle around that. 661 00:35:54,680 --> 00:35:58,759 Speaker 15: I do like to say that future of consumer is longevity, 662 00:35:58,800 --> 00:36:01,480 Speaker 15: because I think you can get too healthy and you 663 00:36:01,520 --> 00:36:03,040 Speaker 15: can't get too happy. 664 00:36:02,920 --> 00:36:05,680 Speaker 5: And more and more people finding out about. 665 00:36:05,400 --> 00:36:08,320 Speaker 15: The opportunity to improve their house, to improve their mental health. 666 00:36:08,160 --> 00:36:10,479 Speaker 5: To improve their relationships. So I think future of human 667 00:36:10,560 --> 00:36:13,160 Speaker 5: is really interesting. And I'm kind of investors that. 668 00:36:13,520 --> 00:36:17,400 Speaker 15: Invest very early, and I invest in founders, and I 669 00:36:17,480 --> 00:36:21,800 Speaker 15: keep being excited about meeting new founders, which is different from. 670 00:36:21,440 --> 00:36:23,359 Speaker 5: Anyone else and can change the world. 671 00:36:23,440 --> 00:36:27,000 Speaker 15: I think tech founders and tech entrepreneurs are the ones 672 00:36:27,040 --> 00:36:30,240 Speaker 15: that will drive the biggest change for humanity and definitely 673 00:36:30,360 --> 00:36:33,239 Speaker 15: change for the better. And I'm very hopeful to meet 674 00:36:33,239 --> 00:36:36,600 Speaker 15: new companies and find out what are the other crazy 675 00:36:36,640 --> 00:36:39,000 Speaker 15: things that I come up with that will change the 676 00:36:39,040 --> 00:36:41,520 Speaker 15: world that we live in right now with such a 677 00:36:41,520 --> 00:36:42,200 Speaker 15: big spid. 678 00:36:44,120 --> 00:36:47,240 Speaker 3: Day one Benchres general partner and founder Marsha Bulcher. Great 679 00:36:47,280 --> 00:36:49,080 Speaker 3: to have you on the program and good to catch up. 680 00:36:49,120 --> 00:36:51,239 Speaker 3: Thank you. Now we're also going to stick with AI 681 00:36:51,280 --> 00:36:54,360 Speaker 3: for the rest of the program. Okay. Ai powered wearables 682 00:36:54,400 --> 00:36:58,560 Speaker 3: are taking on smartphones, a new crop of pins, monocles, 683 00:36:58,840 --> 00:37:01,799 Speaker 3: smart sunglasses. We're all coming to market and are trying 684 00:37:01,800 --> 00:37:05,880 Speaker 3: to challenge the dominance posed by traditional smartphone. I want 685 00:37:05,880 --> 00:37:08,680 Speaker 3: to bring in Bloomberg's Sharing Gafari, who's been writing about 686 00:37:08,680 --> 00:37:12,239 Speaker 3: this in her newsletter. I must say at CES this 687 00:37:12,520 --> 00:37:15,759 Speaker 3: was the thing. AI is real. It's in these devices. 688 00:37:16,320 --> 00:37:19,640 Speaker 3: What have you been writing about? That's right. 689 00:37:19,680 --> 00:37:22,439 Speaker 16: I think we're seeing the most hype and excitement around 690 00:37:22,480 --> 00:37:26,040 Speaker 16: AI wearables since perhaps ten years ago when Google Glass 691 00:37:26,080 --> 00:37:29,200 Speaker 16: first came out. You know, people are really trying to 692 00:37:29,239 --> 00:37:32,440 Speaker 16: capitalize on the rapid advancements that have been made on 693 00:37:32,480 --> 00:37:35,719 Speaker 16: the software side with Jenai and bring that into hardware. 694 00:37:37,200 --> 00:37:40,840 Speaker 3: A part of this story is a bet that human 695 00:37:40,920 --> 00:37:45,719 Speaker 3: beings change how they interact in terms of communication. Right. 696 00:37:45,800 --> 00:37:47,640 Speaker 3: Humane is what we're showing on the screen. Now, we've 697 00:37:47,640 --> 00:37:50,319 Speaker 3: had the CEO on the show, but it's going to 698 00:37:50,360 --> 00:37:53,000 Speaker 3: be different from having something physically in your hands. Seems 699 00:37:53,040 --> 00:37:55,160 Speaker 3: to be the main takeaway. 700 00:37:56,080 --> 00:37:58,640 Speaker 16: Correct The idea is for a lot of these devices. 701 00:37:58,680 --> 00:38:02,160 Speaker 16: They're not aiming to miss necessarily completely replace the smartphone 702 00:38:02,239 --> 00:38:04,279 Speaker 16: right out, but try to be a supplement to it, 703 00:38:04,600 --> 00:38:06,640 Speaker 16: kind of like how we have an Apple Watch, so 704 00:38:07,000 --> 00:38:09,720 Speaker 16: humane is a pin that you can attach to your clothing. 705 00:38:10,440 --> 00:38:13,480 Speaker 16: There are monocles that you can add to your glasses. 706 00:38:13,880 --> 00:38:17,040 Speaker 16: Meta has its smart ray bands, and then of course 707 00:38:17,080 --> 00:38:19,759 Speaker 16: we're seeing Apple's Vision Pro, which is a lot more 708 00:38:19,760 --> 00:38:22,000 Speaker 16: heavy duty, and you know, it seems like it's being 709 00:38:22,000 --> 00:38:24,319 Speaker 16: pitched very much in an enterprise fashion as well, coming 710 00:38:24,320 --> 00:38:25,000 Speaker 16: out next week. 711 00:38:25,239 --> 00:38:28,440 Speaker 3: And a few monocle the monocle three hundred dollars from 712 00:38:28,440 --> 00:38:31,200 Speaker 3: Brilliant Labs, aipowder. It makes me think about that emoji, 713 00:38:31,600 --> 00:38:33,719 Speaker 3: which you know, I'll post it on X after this, 714 00:38:33,920 --> 00:38:37,120 Speaker 3: but we have fifteen seconds. Which of all those things 715 00:38:37,160 --> 00:38:38,719 Speaker 3: are you most inclined to use? 716 00:38:40,800 --> 00:38:44,120 Speaker 16: You know, for me, it's the classic sunglasses. 717 00:38:44,560 --> 00:38:46,960 Speaker 17: Actually, on a recent trip to Hawaii, I crushed my 718 00:38:47,239 --> 00:38:50,279 Speaker 17: normal analog glasses and I had to use Meta's ray 719 00:38:50,320 --> 00:38:53,560 Speaker 17: band testers that I had for fun, and they kind of, 720 00:38:53,800 --> 00:38:57,040 Speaker 17: you know, we're sort of seamless because they looked like again, 721 00:38:57,160 --> 00:39:00,800 Speaker 17: regular shades. I didn't look strained if I was walking 722 00:39:00,800 --> 00:39:03,160 Speaker 17: around in public wearing them. So for me, something that's 723 00:39:03,160 --> 00:39:08,240 Speaker 17: sleek and designed well and looks normal is what I about. 724 00:39:07,080 --> 00:39:10,240 Speaker 3: Them, all right, Bloomberg Shrien Gafari check out her newsletter, 725 00:39:10,280 --> 00:39:12,319 Speaker 3: Thank you very much. That does it for this edition 726 00:39:12,320 --> 00:39:15,120 Speaker 3: of Bloomberg Technology. Check out the pod. By the way, 727 00:39:15,480 --> 00:39:18,600 Speaker 3: new Time starts next week. This is Bloomberg Technology.