WEBVTT - BI Weekend: Nvidia Chips, Dating Apps, Tesla Vote 0:00:02.759 --> 0:00:11.760 Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Intelligence 0:00:11.880 --> 0:00:13.000 with Paul Sweeney. 0:00:13.119 --> 0:00:16.360 The real app performance has been the US corporate high yield. 0:00:16.440 --> 0:00:20.079 These are two big time blue chip companies. One person's 0:00:20.120 --> 0:00:23.840 cast is another person's animal spirits breaking market. 0:00:23.520 --> 0:00:26.320 Headlines and corporate news from across the globe. 0:00:26.360 --> 0:00:28.440 Our view is, if the economy is slowing down. 0:00:28.400 --> 0:00:30.560 There is the possibility of the debt spirals. 0:00:30.640 --> 0:00:33.160 Both putum competing and AI are going to power the future. 0:00:33.240 --> 0:00:36.080 People are just buying everything with tax Bloomberg. 0:00:35.680 --> 0:00:40.240 Intelligence with Paul Sweeney on Bloomberg Radio, YouTube and Bloomberg 0:00:40.280 --> 0:00:42.640 Originals on Paul. 0:00:42.479 --> 0:00:45.920 Sweeney and I'm Lis Matteo filling in on Bloomberg Intelligence. 0:00:46.000 --> 0:00:48.000 On today's show, we dig inside the big business stories 0:00:48.040 --> 0:00:50.680 impacting Wall Street and the global markets. Each and every 0:00:50.680 --> 0:00:52.680 week we provide in dept with research and date on 0:00:52.720 --> 0:00:54.520 some of the two thousand companies in one hundred and 0:00:54.520 --> 0:00:57.840 thirty industries our animals cover worldwide. Today, we'll look at 0:00:57.880 --> 0:01:01.680 Bloomberg Intelligence deep dive into aiding apps and how gen 0:01:01.800 --> 0:01:02.959 Z is using them. 0:01:02.840 --> 0:01:05.800 Plus a look at how Trump administration policies are impacting 0:01:05.840 --> 0:01:07.480 the transition to clean power. 0:01:07.840 --> 0:01:09.440 First, we begin with the tech sector. 0:01:09.840 --> 0:01:12.560 Well, this week we heard that tech giants Nvidia and 0:01:12.640 --> 0:01:16.000 AMD they plan to resume sales of some AI chips 0:01:16.040 --> 0:01:19.120 in China. This came after US government officials told the 0:01:19.160 --> 0:01:21.720 companies these shipments would get approved for. 0:01:21.680 --> 0:01:23.640 More at least than I were joined by Mandeep seeing 0:01:23.640 --> 0:01:26.040 Bloomberg Intelligence senior tech industry analysts. 0:01:26.480 --> 0:01:29.000 We first asked Mandeep to explain the policies of the 0:01:29.080 --> 0:01:30.959 US government as it relates to chips. 0:01:31.440 --> 0:01:36.880 In mid April, the current administration banned the sale of 0:01:37.280 --> 0:01:41.880 Nvidia H twenty chips. And remember H twenty is a 0:01:41.920 --> 0:01:47.000 deprecated version of the Hopper two hundred chip that Nvidia 0:01:47.080 --> 0:01:49.640 sells in the US and other markets. So it's not 0:01:49.720 --> 0:01:54.120 the highest hip in terms of performance and power consumption. 0:01:54.880 --> 0:01:58.200 But at the same time, what they were able to 0:01:58.240 --> 0:02:00.520 do is to sell this deprecated verd and for a 0:02:00.600 --> 0:02:04.320 while and then since mid April it was completely banned. 0:02:04.560 --> 0:02:07.880 And so what Nvidia did was they took down the 0:02:07.920 --> 0:02:11.519 guidance and they pretty much rode off. The inventory of 0:02:11.639 --> 0:02:16.160 the EDH twenty chips for their one Q party was 0:02:16.280 --> 0:02:19.079 around two point one billion for one queue and then 0:02:19.120 --> 0:02:23.000 for two Q they guided for an eight billion dollar 0:02:23.840 --> 0:02:27.600 sort of headwind from the lack of sales to the 0:02:27.680 --> 0:02:33.480 China region. Now with this new guideline around Nvidia being 0:02:33.520 --> 0:02:36.880 able to sell those edged twenty chips, I believe it's 0:02:36.919 --> 0:02:41.840 a similar version to what they were selling before. I 0:02:41.880 --> 0:02:46.080 think you could pretty much add you know, I would 0:02:46.120 --> 0:02:49.720 say up to a twenty five billion dollar run rate 0:02:49.919 --> 0:02:52.960 annually in terms of sales to China. So think of 0:02:54.000 --> 0:02:57.000 Nvidia sales next year are going to be around two 0:02:57.040 --> 0:03:00.960 hundred and fifty billion. That's the current consensus US add 0:03:01.000 --> 0:03:04.960 twenty five billion dollars to that because that's how much 0:03:05.040 --> 0:03:07.640 they are able to sell to China as of right now. 0:03:07.919 --> 0:03:10.480 It could be much higher, but at least a ten 0:03:10.520 --> 0:03:14.240 percent lift from being able to sell into China with 0:03:14.360 --> 0:03:18.639 these kind of lighter version of their highest end chips. 0:03:18.639 --> 0:03:21.680 So I think it's a net positive. Same thing for 0:03:21.800 --> 0:03:26.120 AMDMD the market is much smaller for them given their 0:03:26.160 --> 0:03:29.920 market share in GPUs, but I would say AMD would 0:03:29.919 --> 0:03:33.400 get a similar lift at least ten percent of their 0:03:33.480 --> 0:03:34.639 sales expectations. 0:03:34.760 --> 0:03:36.960 So is there a difference between what Nvidia can sell 0:03:36.960 --> 0:03:39.400 and what AMD can sell in China? Is it about 0:03:40.520 --> 0:03:42.440 the same as far what the white House would say. 0:03:43.080 --> 0:03:48.120 So. AMD also has a deprecated version of their highest 0:03:48.120 --> 0:03:51.520 stand chips that they're selling into the US market as well, 0:03:51.960 --> 0:03:57.120 just because the administration doesn't want either AMD or Nvidia 0:03:57.200 --> 0:04:00.360 to sell their highest and chip that's made on three 0:04:00.440 --> 0:04:03.760 nanometers note that has got a search to performance PEC 0:04:04.200 --> 0:04:06.640 and so they don't want the latest technology to be 0:04:06.720 --> 0:04:10.880 sold into the China region. What they're okay with is 0:04:11.680 --> 0:04:15.640 an older version of Nvidia chips that doesn't have the 0:04:15.680 --> 0:04:18.640 same level of performance as the current version, and that 0:04:19.120 --> 0:04:22.480 they can sell into these Chinese companies, and the administration 0:04:22.600 --> 0:04:23.720 is okay with that, all. 0:04:23.720 --> 0:04:25.880 Right, man, Deep, I have no idea why the government's 0:04:25.920 --> 0:04:30.400 changing its policy, but it's good for these companies negotiations certainly, 0:04:30.440 --> 0:04:32.240 so we'll keep it on that. Do we know just 0:04:32.279 --> 0:04:34.360 off and why they change the policy. 0:04:34.920 --> 0:04:38.120 I mean, it's part of the bigger negotiation. The administration 0:04:38.279 --> 0:04:41.680 is focused on building more data centers here in the 0:04:41.800 --> 0:04:44.960 US for them for the companies to be able to 0:04:45.000 --> 0:04:48.000 do that meta talking about superintelligence and you know all 0:04:48.040 --> 0:04:51.720 the capex spen they need some stuff from China as well. 0:04:52.120 --> 0:04:55.560 So this is more about you have the rare earth stuff. 0:04:56.040 --> 0:05:00.240 We have the chips and it's part of the bigger negotiation. 0:05:00.160 --> 0:05:02.920 Our thanks to man deep seeing Bloomberg Intelligence senior tech 0:05:02.960 --> 0:05:03.920 industry analyst. 0:05:04.279 --> 0:05:07.839 We recently focused on a Bloomberg story entitled Stealth Steak 0:05:08.080 --> 0:05:10.440 Sales Health, United Health beat Wall Street Targets. 0:05:10.560 --> 0:05:12.880 You can find it on the Bloomberg Terminal and Bloomberg 0:05:12.960 --> 0:05:16.520 dot com. It discusses how until this year, United Health 0:05:16.520 --> 0:05:19.200 Group had managed to pull off an impressive feat more 0:05:19.240 --> 0:05:23.200 than sixty consecutive quarters of earnings that beat Wall Street estimates, but. 0:05:23.160 --> 0:05:25.760 Now analysts are starting to question how United Health is 0:05:25.920 --> 0:05:28.160 arriving at these numbers for more. Atleasta and I were 0:05:28.200 --> 0:05:31.000 joined by Michelle Davis, Bloomberg senior deals reporter. 0:05:31.360 --> 0:05:33.839 We first asked Michelle about what she found out when 0:05:33.839 --> 0:05:35.640 she looked into United Health's earnings. 0:05:36.040 --> 0:05:38.440 They had kind of a pristine record for more than 0:05:38.520 --> 0:05:42.960 sixty quarters. They beat estimates. Analysts love them, and at 0:05:42.960 --> 0:05:45.120 the end of last year that got a bit harder 0:05:45.120 --> 0:05:47.840 for them to keep up. You know, medical costs arising, 0:05:48.040 --> 0:05:51.080 the government's been cracking down on reinforcements and that was 0:05:51.120 --> 0:05:54.160 eating into profits. And so what we reported is that 0:05:54.200 --> 0:05:57.159 at the end of last year they approached several private 0:05:57.160 --> 0:06:00.240 equity firms and asked them if they wanted to buy 0:06:00.400 --> 0:06:03.839 stakes off of them of their businesses, and a couple 0:06:03.880 --> 0:06:07.480 interesting things happen here. Not only did they quietly do this, 0:06:07.720 --> 0:06:11.240 but the deals were structured such that United Health can 0:06:11.279 --> 0:06:14.200 be forced to buy the businesses back down the road, 0:06:14.279 --> 0:06:19.000 so it's temporary in nature. And United booked the gains 0:06:19.080 --> 0:06:21.159 in an interesting place. They booked them as part of 0:06:21.240 --> 0:06:24.440 operating earnings, which is or adjusted earnings, which is normally 0:06:24.760 --> 0:06:27.040 where you look to see kind of how a business 0:06:27.080 --> 0:06:29.600 is doing, you know, excluding one off gains or one 0:06:29.600 --> 0:06:32.280 off events like this, And so it was just interesting 0:06:32.320 --> 0:06:34.440 to see not only the fact that they stealthily did this, 0:06:34.560 --> 0:06:37.560 but where they put them. And without these gains, they 0:06:37.560 --> 0:06:40.599 would have missed estimates and profit would have dropped in 0:06:40.640 --> 0:06:41.839 the last quarter of last year. 0:06:42.000 --> 0:06:44.760 So, as I'm going through this article, this certain quote 0:06:44.800 --> 0:06:46.560 stands out for me From an analyst that you spoke to. 0:06:46.600 --> 0:06:48.960 He said, if the company is manufacturing earnings by chopping 0:06:49.080 --> 0:06:52.080 up their furniture or selling their assets, that's not exactly 0:06:52.160 --> 0:06:55.280 a great business model. Okay, so is the risk that 0:06:55.320 --> 0:06:58.400 it might be kind of masking this weakness in the operations. 0:06:58.880 --> 0:07:01.159 That's the concern, and to be clear, you know, there's 0:07:01.200 --> 0:07:04.120 nothing illegal about what they're doing, per se. You know, 0:07:04.160 --> 0:07:07.160 they disclosed that they did this, most people didn't see it. 0:07:07.160 --> 0:07:09.000 It was in a footnote in their ten K that 0:07:09.160 --> 0:07:11.000 kind of went under the radar, and there are no 0:07:11.080 --> 0:07:13.880 details about what exactly they sold. That's what we're trying 0:07:13.880 --> 0:07:16.320 to you know, report on here. But yeah, the concern 0:07:16.400 --> 0:07:19.200 is it clouds, you know, your ability to see how 0:07:19.240 --> 0:07:22.400 the business is actually performing. And we heard from sources 0:07:22.440 --> 0:07:25.640 that there's a culture inside United Health of you know, 0:07:26.040 --> 0:07:28.400 kind of there being this pressure to do whatever you 0:07:28.480 --> 0:07:30.880 can to meet targets every quarter. 0:07:31.120 --> 0:07:31.320 Yep. 0:07:31.360 --> 0:07:34.200 It's a huge company, huge player in the managed care business. 0:07:34.400 --> 0:07:37.360 What's the underlying concern for investors out there? Do you 0:07:37.360 --> 0:07:38.280 think around this company? 0:07:39.160 --> 0:07:42.360 United Health has been dealing with a lot of things. 0:07:42.440 --> 0:07:45.480 I mean, even before we knew about this, there was 0:07:45.560 --> 0:07:48.240 obviously the tragedy of you know, one of their executives 0:07:48.280 --> 0:07:52.000 being murdered last year, and then you know, there was 0:07:52.000 --> 0:07:56.120 a Wall Street Journal investigation this year about potential medicare fraud, 0:07:56.200 --> 0:08:00.000 which they have denied. They also, in the first courts 0:08:00.240 --> 0:08:02.760 reported their first earnings miss in you know, more than 0:08:02.800 --> 0:08:05.559 sixty quarters, so that shoe finally dropped. They outed their CEO. 0:08:05.640 --> 0:08:09.480 So investors are just concerned about the story here, you know, what, 0:08:09.480 --> 0:08:11.480 what is the United Health story? I think that's what 0:08:11.600 --> 0:08:12.440 the big concern is. 0:08:12.720 --> 0:08:15.679 So are there any other companies, like maybe other health 0:08:15.720 --> 0:08:18.680 companies or something like that where this same story that 0:08:18.720 --> 0:08:20.240 you've been talking about kind of plays out? 0:08:20.840 --> 0:08:23.640 Not that we could find it. Seems like United Health 0:08:23.760 --> 0:08:28.760 is really, you know, unique in its ability and history 0:08:28.800 --> 0:08:33.560 of you know, really carefully managing its reporting every quarter. 0:08:33.800 --> 0:08:37.160 Our thanks to Michelle Davis, Bloomberg Senior Deals reporter, we. 0:08:37.040 --> 0:08:39.520 Move next to the IT space. This week, we heard 0:08:39.520 --> 0:08:42.640 that the IT company, Hewlett Packard Enterprise is creating a 0:08:42.679 --> 0:08:45.880 new strategy committee and HPA is agreeing to work with 0:08:45.960 --> 0:08:49.480 activist investor Elliott Investment Management on ways to help the 0:08:49.520 --> 0:08:51.640 software company boost value for more. 0:08:51.760 --> 0:08:54.480 Lisa and I were joined by Wujin Hope, Bloomberg Intelligence 0:08:54.520 --> 0:08:58.000 senior technology analysts. You're first to ask Wugent about the 0:08:58.080 --> 0:09:00.680 new committee HPE is creating. 0:09:01.240 --> 0:09:06.400 It is a handpicked board member by Elliott Management. Keep 0:09:06.440 --> 0:09:10.360 in mind, Elliott is an activist investor that has a 0:09:10.360 --> 0:09:14.240 ten percent plus shareholding of HPE. I think I believe 0:09:14.240 --> 0:09:18.040 they made their position earlier this year, and who they 0:09:18.080 --> 0:09:24.360 appointed was Bob Calderoni, who has done similar type of 0:09:24.400 --> 0:09:27.640 deals in terms of taking companies private or more importantly 0:09:27.679 --> 0:09:31.760 operational streamlining. So any changes, I think Elliott is going 0:09:31.800 --> 0:09:35.560 to try through Bob to affect a lot of changes 0:09:35.559 --> 0:09:36.920 at HPE. 0:09:37.000 --> 0:09:41.320 Which just remind us what HP is today. Number one 0:09:41.320 --> 0:09:44.240 and number two, what do they need to fix to 0:09:44.320 --> 0:09:45.160 move this thing forward? 0:09:45.960 --> 0:09:49.640 Yeah, hey, Paul, so, HPE is one of the leading 0:09:51.000 --> 0:09:57.800 enterprise IT infrastructure vendors. They provide servers, storage, now a 0:09:57.840 --> 0:10:02.680 bigger networking presence with the June acquisition, and actually, quite 0:10:02.760 --> 0:10:05.320 quite frankly, there's quite a bit to fix from an 0:10:05.360 --> 0:10:11.920 operational standpoint. They fumbled the first quarter results by mispricing 0:10:12.000 --> 0:10:15.880 their server business and it seems to be reconciled now, 0:10:16.480 --> 0:10:19.720 but it flags some of the operational issues. Number one, 0:10:19.800 --> 0:10:22.240 Number two, they have made a lot of M and 0:10:22.320 --> 0:10:25.040 A that just didn't create the synergies that they had hoped. So, 0:10:25.679 --> 0:10:32.040 you know, they did hire the former HPCFO to streamline 0:10:32.160 --> 0:10:38.719 the financials, and with the Juniper merger starting underway, I 0:10:39.120 --> 0:10:43.560 suspect that you know, the new strategy board, it will 0:10:43.559 --> 0:10:47.440 try to find more operational synergies between the two networking businesses. 0:10:47.640 --> 0:10:50.400 WIJ and can you dig more into how it's under 0:10:50.440 --> 0:10:53.640 pressure kind of like lagging behind Dell and growing AI. 0:10:53.840 --> 0:10:55.720 What kind of pressure is it facing in that market? 0:10:56.520 --> 0:11:01.200 Yeah, so if we think about AI, right, you know, 0:11:01.920 --> 0:11:07.400 HPE actually owns Cray, and we think about high performance compute, 0:11:08.400 --> 0:11:11.800 they are the market leaders there. They weren't able. HPE 0:11:11.840 --> 0:11:16.040 has not been able to transition that Cray business elegantly 0:11:16.960 --> 0:11:19.880 to UH the to the AI side of things. So 0:11:20.040 --> 0:11:24.400 let me put this into context. I think HPE should 0:11:24.440 --> 0:11:27.200 be on track for about three to four billion dollars 0:11:27.240 --> 0:11:31.560 in AI sales UH this year, possibly you know four 0:11:31.559 --> 0:11:35.360 to five, right, Dell is going to be on track 0:11:35.360 --> 0:11:38.240 for about fifteen billion dollars this year, and super Micro 0:11:38.440 --> 0:11:40.640 is probably on track for about twenty billion this year. 0:11:41.160 --> 0:11:43.760 So you know, they've lagged on the AI front even 0:11:43.800 --> 0:11:46.360 though they have some of the leading technologies on high 0:11:46.400 --> 0:11:49.680 performance compute. That's an area that you know could be 0:11:49.720 --> 0:11:51.760 fixable under the right hands. 0:11:52.480 --> 0:11:55.560 One more here before we let you go, which is 0:11:55.679 --> 0:11:58.120 just you mentioned they owned Cray, they owned Juniper. If 0:11:58.160 --> 0:12:01.439 i'm Elliott Management, am I thinking about maybe they can 0:12:01.480 --> 0:12:03.640 be selling or spinning off some of these businesses to 0:12:03.800 --> 0:12:04.680 enhance value. 0:12:05.360 --> 0:12:07.920 Well, you know, Bob Calderoni used to be on the 0:12:08.000 --> 0:12:11.439 Juniper board and they actually helped with the operational stitch 0:12:11.520 --> 0:12:15.720 lining of Juniper. Right, so I think that you want 0:12:15.760 --> 0:12:20.440 to keep Juniper. Okay, there are other aspects of the 0:12:20.480 --> 0:12:25.000 networking business that you could probably probably parse away. Right, 0:12:25.520 --> 0:12:28.920 the crab business you'd want to keep because AI is 0:12:28.960 --> 0:12:31.160 going to be the growth engine and also help you 0:12:31.200 --> 0:12:33.600 transition to the enterprise AI our. 0:12:33.559 --> 0:12:36.559 Thanks to Wujinell, Bloomberg Intelligence Senior Technology Analyst. 0:12:36.840 --> 0:12:39.280 Coming up, we'll look at Bloomberg Intelligence to this deep 0:12:39.360 --> 0:12:40.800 dive into dating apps. 0:12:41.080 --> 0:12:43.960 Listening to Bloomberg Intelligence on Bloomberg Radio, providing in depth 0:12:43.960 --> 0:12:46.240 research and data on two thousand companies and one hundred 0:12:46.240 --> 0:12:47.040 and thirty industries. 0:12:47.160 --> 0:12:52.120 You can access Bloomberg Intelligence big. I'm the Terminal, I'm LISMITTEO. 0:12:51.520 --> 0:12:53.400 And Paul Sweingy and this is Bloomberg. 0:12:57.400 --> 0:13:01.120 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:13:01.200 --> 0:13:04.280 weekdays at ten am Easterned on Apple, Cocklay and Android 0:13:04.280 --> 0:13:07.600 Auto with the Bloomberg Business app. Listen on demand wherever 0:13:07.640 --> 0:13:11.480 you get your podcasts or watch us live on YouTube. 0:13:11.520 --> 0:13:13.960 I'm Paul Sweeney and I'm Lisa Matteo filling in on 0:13:14.000 --> 0:13:15.439 Bloomberg Intelligence The. 0:13:15.440 --> 0:13:17.520 Next move, So the world of online dating. 0:13:17.640 --> 0:13:20.880 Bloomberg Intelligence recently did a survey on dating apps and 0:13:20.880 --> 0:13:23.400 how gen Z is using them, and the survey found 0:13:23.400 --> 0:13:26.280 that gen Z is dating less than most other generations 0:13:26.400 --> 0:13:26.720 from are. 0:13:26.760 --> 0:13:29.199 On this Lisa and I were joined by Nicole Desuza, 0:13:29.400 --> 0:13:32.160 Bloomberg Intelligence Internet and software equity analysts. 0:13:32.320 --> 0:13:34.720 We first asked Nicole to explain her findings. 0:13:35.160 --> 0:13:38.400 We have Bloomberg Intelligence conducted the survey to better understand 0:13:38.440 --> 0:13:42.080 how people are navigating dating, how they use dating apps, 0:13:42.120 --> 0:13:44.920 and then also how they feel about AI within dating apps. 0:13:45.600 --> 0:13:49.599 And so some really interesting findings. First that you know, specifically, 0:13:49.679 --> 0:13:53.120 gen Z tends to be single but not dating. Gen 0:13:53.200 --> 0:13:56.360 Z's what age again, sixteen to twenty eight, sixteen. 0:13:55.920 --> 0:13:58.280 To twenty al right, so yeah, single, two of my 0:13:58.520 --> 0:14:01.400 four into that one, okay, And so they're not using 0:14:01.440 --> 0:14:02.160 the apps. 0:14:02.000 --> 0:14:06.000 They're not even dating. Single and not dating. So this 0:14:06.200 --> 0:14:09.160 is I mean, there's a few reasons. Studies have kind 0:14:09.160 --> 0:14:11.840 of shown they do have higher rates of loneliness, but 0:14:11.960 --> 0:14:16.520 they are also prioritizing independence. They are also you know, 0:14:16.559 --> 0:14:20.560 feeling a reduced stigma around being single. So it could 0:14:20.600 --> 0:14:22.680 really change dating patterns generationally. 0:14:22.800 --> 0:14:24.120 I can kind of say my son was on a 0:14:24.200 --> 0:14:26.120 dating app and then he stopped because he got tired 0:14:26.160 --> 0:14:28.160 of it and it just and he's in that gen 0:14:28.280 --> 0:14:31.800 Z kind of group and they're not going to pay 0:14:31.800 --> 0:14:35.280 for them too. So how does that change for these 0:14:35.480 --> 0:14:37.840 different you know, dating apps out there. How do they 0:14:37.840 --> 0:14:38.800 have to change their approach? 0:14:39.480 --> 0:14:43.680 So right now a lot of what we're seeing from 0:14:43.760 --> 0:14:46.280 gen Z is that even though they are dating less, 0:14:46.280 --> 0:14:49.040 they are looking for long term relationships. Those that are dating, 0:14:49.240 --> 0:14:52.560 they are looking to form meaningful connections. So, you know, 0:14:52.640 --> 0:14:55.000 some of the products we've seen from these dating apps 0:14:55.080 --> 0:14:57.320 that really introduce AI are more around how to create 0:14:57.320 --> 0:14:59.960 a profile, how to make it easier to talk to people, 0:15:00.240 --> 0:15:02.720 you know, using AI to generate prompts that might not 0:15:02.760 --> 0:15:05.440 necessarily you know, correlate with what gen Z is looking 0:15:05.480 --> 0:15:07.240 for in terms of forming a meaningful connection. 0:15:08.080 --> 0:15:10.680 I'll tell you Lisa go to the Parker House and 0:15:10.720 --> 0:15:14.800 seeing her at New Jersey on a summer Saturday, thousands 0:15:14.880 --> 0:15:19.360 and thousands of kids of gen Z type are there 0:15:20.000 --> 0:15:21.840 at like four o'clock in the afternoon. They're not on 0:15:21.880 --> 0:15:24.720 the beach. They're all made up, dressed to the nines. 0:15:25.120 --> 0:15:27.640 I think they're looking to hook to you meet somebody 0:15:27.720 --> 0:15:28.560 right now. I've been there. 0:15:28.600 --> 0:15:29.080 I had to wait. 0:15:30.600 --> 0:15:33.120 I mean, I don't know what's going on. How about millennials? 0:15:33.120 --> 0:15:34.400 How did they fare? 0:15:34.800 --> 0:15:37.640 So millennials are they kind of came of age during 0:15:37.640 --> 0:15:39.520 the time of dating apps, so a lot of dating 0:15:39.560 --> 0:15:43.800 apps are really created to target dating patterns of millennials. 0:15:43.880 --> 0:15:46.960 So millennials have a more favorable relationship with dating apps. 0:15:47.000 --> 0:15:50.480 And they also are much more like comfortable with AI 0:15:50.680 --> 0:15:53.840 in dating apps versus gen Z, which was surprising to us. 0:15:54.120 --> 0:15:56.760 Now what about Okay, people always forget about gen X, 0:15:57.640 --> 0:16:01.680 the gen X folks, So what about gen X? And 0:16:01.720 --> 0:16:05.120 then you know my mom, you know, single, like she 0:16:05.280 --> 0:16:07.600 wants to find out about these apps. I'm telling you, 0:16:08.320 --> 0:16:09.880 what about the older generation? 0:16:10.080 --> 0:16:13.000 They're on dating apps, so they're on it. There are Yeah, 0:16:13.120 --> 0:16:15.560 there are a lot of gen X and baby boomers 0:16:15.560 --> 0:16:18.040 on dating apps, and there are a wide variety of 0:16:18.080 --> 0:16:20.480 dating apps to kind of address different age groups, different 0:16:20.680 --> 0:16:22.760 you know, things that people are looking for. So they're 0:16:22.960 --> 0:16:23.680 they're available. 0:16:24.000 --> 0:16:27.120 How does AI I have to ask the AI questions 0:16:27.680 --> 0:16:29.680 Because we had a guest on earlier about it. I 0:16:29.720 --> 0:16:31.800 walked out of there thinking AI is going to take 0:16:31.800 --> 0:16:34.920 over Wall Street? How about AI and dating apps that 0:16:35.600 --> 0:16:38.840 I would think could be helpful to better select somebody 0:16:38.880 --> 0:16:40.480 who might be a good match or something. 0:16:40.800 --> 0:16:43.160 So we've seen dating app companies roll out a lot 0:16:43.160 --> 0:16:47.160 of AI products. I would say, right now, it seems, 0:16:47.160 --> 0:16:49.400 at least based on our survey, that they haven't been 0:16:49.480 --> 0:16:52.880 that well received. It seems like people don't necessarily need 0:16:52.920 --> 0:16:55.640 AI to build a better profile, they don't need AI 0:16:55.760 --> 0:16:58.440 to help them engage in conversation. I think where it 0:16:58.440 --> 0:17:01.120 has been helpful is user safety, so to weed out 0:17:01.160 --> 0:17:04.800 profiles that are fake or you know, potentially sent people 0:17:04.800 --> 0:17:08.000 who are sending harmful messages. And that is a common complaint. 0:17:08.320 --> 0:17:12.320 But as of right now, it doesn't seem that you know, 0:17:12.720 --> 0:17:15.520 at least gen Z and even some millennials are really 0:17:16.480 --> 0:17:18.760 really adopting these new AI products. 0:17:18.840 --> 0:17:21.439 So, and there are certain a dating apps that are 0:17:21.480 --> 0:17:23.520 more popular than others, I mean, which are the hot 0:17:23.560 --> 0:17:24.160 ones right now? 0:17:24.560 --> 0:17:28.680 So right now, at least by users, Tinder has by 0:17:28.720 --> 0:17:31.320 far the most users that's owned by match Group. And 0:17:31.359 --> 0:17:33.920 then Hinge is actually one of the few dating apps 0:17:33.920 --> 0:17:37.080 that is continuing to grow users, and that's probably because 0:17:37.119 --> 0:17:38.919 Hinge focus is a little bit more on kind of 0:17:39.000 --> 0:17:42.480 long term relationships, building meaningful connections. Tinder still has a 0:17:42.520 --> 0:17:44.280 reputation of kind of a hookup app. 0:17:44.440 --> 0:17:46.400 Yes, which one. 0:17:47.520 --> 0:17:49.040 Yeah, that's how my son was on. 0:17:52.080 --> 0:17:56.320 Our thanks to Nicole Desuza, Bloomberg Intelligence, Internet and Software analysts. 0:17:56.520 --> 0:17:59.280 We move next to news from the ev giant Tesla. 0:17:59.560 --> 0:18:01.800 This week, I heard that Tesla's shareholders will vote on 0:18:01.840 --> 0:18:05.480 whether to invest in CEO Elon Musk's artificial intelligence startup 0:18:05.840 --> 0:18:08.280 x Ai. That's according to Elon Musk. 0:18:08.480 --> 0:18:10.679 Musk made the statement in response to an account on 0:18:10.960 --> 0:18:13.520 x that said the Carmaker must be able to invest 0:18:13.520 --> 0:18:17.280 in x Ai to be fair to Tesla retail investors for. 0:18:17.200 --> 0:18:18.919 More at least and I were joined by Craig Trudell, 0:18:19.000 --> 0:18:20.840 Bloomberg Global Autos Editor. 0:18:21.240 --> 0:18:23.520 We first asked Craig what kind of message he thinks 0:18:23.600 --> 0:18:25.359 Musk's recent statement is sending. 0:18:25.680 --> 0:18:30.000 It's sending that, you know, Elon's Elon's business empire is 0:18:30.640 --> 0:18:34.159 becoming all the more intertwined. So this has been, you know, 0:18:34.280 --> 0:18:38.080 sort of a case on and off for years. We 0:18:38.119 --> 0:18:41.320 can think back to say, you know, the Tesla Solar 0:18:41.359 --> 0:18:45.919 City acquisition, you know, and that's going back quite a ways. 0:18:45.960 --> 0:18:49.800 But you know, in this case, it would be Tesla, 0:18:50.760 --> 0:18:54.240 you know, his most valuable company in investing in in 0:18:54.359 --> 0:18:56.600 sort of his up and comer and one where he's 0:18:56.760 --> 0:19:00.840 you know, spent an awful lot of time and energy, folks, Gustan. Lately, 0:19:01.440 --> 0:19:05.040 as Tesla's electric vehicle sales have been slowing, he's been 0:19:05.480 --> 0:19:08.440 really sort of dead set on taking on Open AI 0:19:08.560 --> 0:19:11.200 and and sort of standing up a competitor to chat 0:19:11.240 --> 0:19:15.159 GPT and as with all the companies in the space, 0:19:15.760 --> 0:19:18.280 spending an awful lot of money to try and compete 0:19:18.320 --> 0:19:19.399 in that realm. 0:19:20.200 --> 0:19:24.160 So where do we stand here in terms of kind 0:19:24.160 --> 0:19:27.200 of how investors are viewing their investment in Tesla. Are 0:19:27.200 --> 0:19:30.240 they invested in a auto company or are they invested in 0:19:30.280 --> 0:19:33.880 an AI company or they invested just an Elon Inc? 0:19:34.320 --> 0:19:35.640 How did they think about it these days? 0:19:36.640 --> 0:19:36.840 Yeah? 0:19:36.840 --> 0:19:39.359 I mean, I think Musk has has been trying for 0:19:39.520 --> 0:19:43.479 for several years now to sell and position Tesla as 0:19:43.600 --> 0:19:46.879 much more than just a car company, right and you know, 0:19:46.960 --> 0:19:52.000 it's it's definitely in the energy space and and you know, 0:19:52.080 --> 0:19:56.439 has a battery business to show for that. And in Ai, 0:19:56.840 --> 0:19:59.760 you know, he's he's talked a big game about you know, 0:20:00.560 --> 0:20:04.040 developing self driving technology. He's not he's not gotten there yet. 0:20:04.640 --> 0:20:07.359 Uh as as we've seen with the company, you know, 0:20:07.480 --> 0:20:11.399 starting to offer rides in in Tesla's around Austin, Texas, 0:20:11.840 --> 0:20:14.760 uh they still have uh, you know, Tesla employees in 0:20:15.040 --> 0:20:17.800 the front passenger seat to sort of take over in 0:20:17.920 --> 0:20:20.600 events where you know, the cars have not been able 0:20:20.640 --> 0:20:23.720 to handle uh, you know, navigating the streets on their own. 0:20:24.800 --> 0:20:28.520 And yet with with uh SpaceX, I think interest interestingly, 0:20:28.760 --> 0:20:31.400 you know, for them to have just pumped two billion 0:20:31.920 --> 0:20:34.919 into x Ai, I think there's a little bit of 0:20:34.960 --> 0:20:38.000 fomo on the part of some in the Tesla shareholder 0:20:38.040 --> 0:20:41.639 base where they've seen you know, x AI go from 0:20:42.240 --> 0:20:45.200 you know, not all that valuable a startup to suddenly, 0:20:45.560 --> 0:20:49.040 you know, an extremely valuable startup and they feel like 0:20:49.080 --> 0:20:52.320 they've missed out on some of this appreciation and one 0:20:52.400 --> 0:20:52.800 in on that. 0:20:53.119 --> 0:20:55.200 So with all that said, Craig, I mean, does must 0:20:55.240 --> 0:20:59.440 support a merger between x AI and Tesla or maybe 0:20:59.520 --> 0:21:03.560 x a hind SpaceX You mentioned space X two, He says. 0:21:03.359 --> 0:21:05.400 He does not. And and I think there's been talk 0:21:05.480 --> 0:21:08.760 about this for years, right that, you know, and on 0:21:08.840 --> 0:21:11.040 and off again there's been you know, questions as to 0:21:11.080 --> 0:21:13.120 whether or not Musk is you know, sort of stretched 0:21:13.119 --> 0:21:16.040