1 00:00:01,480 --> 00:00:05,120 Speaker 1: From Marhard where Innovation of Money and Power colle in 2 00:00:05,240 --> 00:00:06,760 Speaker 1: Silicon Valley, NBN. 3 00:00:07,080 --> 00:00:10,600 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed. 4 00:00:10,640 --> 00:00:27,320 Speaker 3: Ludlow live from New York and San Francisco. This is 5 00:00:27,320 --> 00:00:31,000 Speaker 3: Bloomberg Technology coming up ASML shares sync further as its 6 00:00:31,000 --> 00:00:34,440 Speaker 3: CEO addresses the chip equipment maker's shock booking slowdown. 7 00:00:35,280 --> 00:00:37,879 Speaker 4: We speak to Donald Trump about the future of Google. 8 00:00:38,000 --> 00:00:41,800 Speaker 4: Despite criticism, the former president says it's important to keep 9 00:00:41,800 --> 00:00:42,839 Speaker 4: the company intact. 10 00:00:43,080 --> 00:00:46,440 Speaker 3: Plus next generation nuclear More on Google and Amazon's. 11 00:00:46,000 --> 00:00:47,640 Speaker 5: Latest investments in the carbon. 12 00:00:47,400 --> 00:00:51,680 Speaker 3: Free tech crucial to their AI energy needs. But first 13 00:00:51,800 --> 00:00:53,080 Speaker 3: we've got to go to the chip sector. 14 00:00:53,200 --> 00:00:53,240 Speaker 6: Ed. 15 00:00:54,200 --> 00:00:59,600 Speaker 4: Yeah, look downward pressure on semiconductor stocks and chip equipment makers. 16 00:00:59,680 --> 00:01:02,440 Speaker 4: Glow blee has been a story for the past twenty 17 00:01:02,480 --> 00:01:06,480 Speaker 4: four hours in Asia into the European session, and it 18 00:01:06,600 --> 00:01:09,800 Speaker 4: now has continued in the United States. The Philadelphia semi 19 00:01:09,840 --> 00:01:12,840 Speaker 4: Conductor Index is actually higher four tens to one percent, 20 00:01:13,240 --> 00:01:17,160 Speaker 4: and actually it's those two names ASML. It's US traded shares, 21 00:01:17,280 --> 00:01:20,679 Speaker 4: but also note that it's European trading shares are still 22 00:01:20,920 --> 00:01:23,920 Speaker 4: under pressure, down five percent, continuing from the savage sell 23 00:01:23,959 --> 00:01:28,880 Speaker 4: off of Monday of Tuesday. Sorry, Intel is interesting, right. 24 00:01:28,959 --> 00:01:31,880 Speaker 4: Think about the story here ASML is a chip equipment 25 00:01:31,959 --> 00:01:35,920 Speaker 4: maker who buys chip making equipment. Well, Intel has that 26 00:01:36,000 --> 00:01:38,480 Speaker 4: foundry business, So on the socks, it makes a lot 27 00:01:38,480 --> 00:01:41,520 Speaker 4: of sense that in the context of what we're worrying about, 28 00:01:41,680 --> 00:01:44,760 Speaker 4: Intel might be lower. We need to understand what's happening here, 29 00:01:44,880 --> 00:01:48,560 Speaker 4: So let's get more with Bloomberg's Chancock. Who's out for 30 00:01:48,640 --> 00:01:51,960 Speaker 4: us in Amsterdam. Let's start with something and clear something up. 31 00:01:52,440 --> 00:01:57,040 Speaker 4: They put their earnings out early. That confused everyone. The 32 00:01:57,120 --> 00:02:00,600 Speaker 4: CEO had to address it on the investicle. What did 33 00:02:00,600 --> 00:02:01,000 Speaker 4: he say? 34 00:02:02,080 --> 00:02:05,280 Speaker 6: Yeah, so the results were scheduled for today, but the 35 00:02:05,360 --> 00:02:11,000 Speaker 6: company published them early yes yesterday evening by mistake. They 36 00:02:11,000 --> 00:02:13,880 Speaker 6: didn't say much, but they kind of blamed it on 37 00:02:14,160 --> 00:02:17,760 Speaker 6: a technical error in a statement yesterday and today, the CEO, 38 00:02:17,880 --> 00:02:23,120 Speaker 6: Christophe Fouquet, apologized in an analyst call about the results. 39 00:02:23,520 --> 00:02:28,400 Speaker 6: He said, this was very unfortunate. They booked less than 40 00:02:28,480 --> 00:02:32,200 Speaker 6: half of the orders that analysts estimated in the third quarter, 41 00:02:33,000 --> 00:02:35,560 Speaker 6: and they also cut guidance for next year. So the 42 00:02:35,600 --> 00:02:40,760 Speaker 6: results were an unpleasant surprise for analysts, and the market 43 00:02:40,800 --> 00:02:44,519 Speaker 6: reaction was amplified by the company releasing the results a 44 00:02:44,600 --> 00:02:46,240 Speaker 6: day earlier than scheduled. 45 00:02:46,480 --> 00:02:47,600 Speaker 5: Look, they're still thinking. 46 00:02:47,760 --> 00:02:50,040 Speaker 3: Even though the CEO has now spoken out, how did 47 00:02:50,040 --> 00:02:54,080 Speaker 3: he explain the cut to guidance? The bookings dramatically under 48 00:02:54,160 --> 00:02:55,680 Speaker 3: where analysts thought they would be. 49 00:02:56,680 --> 00:03:00,320 Speaker 6: So yeah, any weakness in SML orders, as had mentioned earlier, 50 00:03:00,480 --> 00:03:04,320 Speaker 6: often kind of signals struggles for the wider chip sector. 51 00:03:05,320 --> 00:03:08,120 Speaker 6: They're the market leader for lithography machines in the world, 52 00:03:08,560 --> 00:03:10,240 Speaker 6: so we can call it a bit of a chip 53 00:03:10,280 --> 00:03:14,679 Speaker 6: bell weather. So SML is citing a few delays in 54 00:03:15,680 --> 00:03:18,960 Speaker 6: chip plant constructions around the world as an explanation of 55 00:03:19,000 --> 00:03:20,360 Speaker 6: why the results were so bad. 56 00:03:20,960 --> 00:03:21,120 Speaker 7: Uh. 57 00:03:21,160 --> 00:03:24,560 Speaker 6: They also see weakening growth in China for their older 58 00:03:24,600 --> 00:03:28,639 Speaker 6: machines due to a combination of softening demand and the 59 00:03:28,639 --> 00:03:34,040 Speaker 6: possibility of future export controls from Washington. So also keep 60 00:03:34,040 --> 00:03:36,800 Speaker 6: in mind that Intel is you know, their biggest customer 61 00:03:36,840 --> 00:03:40,080 Speaker 6: in the US, and it's cutting the expenses in a restructuring, 62 00:03:40,360 --> 00:03:46,040 Speaker 6: uh restructuring push. So that's not helping the sentiment either. 63 00:03:46,720 --> 00:03:50,600 Speaker 6: And then you have you know, delayed factories of Intel 64 00:03:50,640 --> 00:03:54,040 Speaker 6: in Germany and Poland. While membership makers such as Samsung 65 00:03:54,160 --> 00:03:56,760 Speaker 6: and s K Heinis are also being careful with their spending. 66 00:03:57,360 --> 00:03:59,640 Speaker 6: Uh So, all of these spending cuts are affecting demand 67 00:03:59,680 --> 00:04:01,800 Speaker 6: for soml's chip making machines. 68 00:04:02,640 --> 00:04:04,960 Speaker 4: Okay, if you're just joining us here on Bloomberg Technology, 69 00:04:05,000 --> 00:04:08,280 Speaker 4: the world's most important maker of the machines that make 70 00:04:08,440 --> 00:04:12,160 Speaker 4: chips had really ugly earnings and an ugly guidance. And 71 00:04:12,200 --> 00:04:14,960 Speaker 4: what Child was just explaining is kind of the backstory 72 00:04:15,480 --> 00:04:18,440 Speaker 4: of earnings that came out early and were a surprise. 73 00:04:18,440 --> 00:04:21,160 Speaker 4: You're looking at the two day chart. Sixteen percent decline 74 00:04:21,160 --> 00:04:25,040 Speaker 4: in Amsterdam yesterday, five percent decline today, and that anxiety 75 00:04:25,080 --> 00:04:28,760 Speaker 4: Caroline was around the world. Asian session, European session, and 76 00:04:28,800 --> 00:04:31,480 Speaker 4: we've chilled out a bit in the US session. What 77 00:04:31,520 --> 00:04:35,240 Speaker 4: we're worried about chan is the investment cycle. What did 78 00:04:35,279 --> 00:04:38,360 Speaker 4: Airsmel tell us about their own investment plans? 79 00:04:39,920 --> 00:04:43,920 Speaker 6: So, yeah, the big miss is obviously a signal that 80 00:04:44,360 --> 00:04:47,640 Speaker 6: the chip industry's weakness is set to continue. They said 81 00:04:48,080 --> 00:04:52,760 Speaker 6: well into twenty twenty five, and they did say that 82 00:04:52,960 --> 00:04:56,920 Speaker 6: ASML will slow its short term investment plans to match 83 00:04:58,240 --> 00:05:03,080 Speaker 6: the market in today's call. Yeah, so basically we can 84 00:05:03,200 --> 00:05:05,440 Speaker 6: we can also say that really it's important to mention 85 00:05:05,480 --> 00:05:08,520 Speaker 6: that the chip industry is experiencing some uneven times, right, 86 00:05:08,640 --> 00:05:12,760 Speaker 6: like in areas such as artificial intelligence accelerators, companies like 87 00:05:12,880 --> 00:05:16,159 Speaker 6: Nvidia can't keep up with the demand. But in other sectors, 88 00:05:16,240 --> 00:05:21,400 Speaker 6: including automotive and industrial, it's a prolonged slump with customers 89 00:05:21,440 --> 00:05:24,120 Speaker 6: cutting back orders because they have too much inventory. So 90 00:05:24,360 --> 00:05:27,200 Speaker 6: sm I'll also mention the weakness in these industries. 91 00:05:27,520 --> 00:05:28,520 Speaker 5: Name the CEO. 92 00:05:28,680 --> 00:05:31,599 Speaker 3: I think the quote of the entire call was today, 93 00:05:31,680 --> 00:05:35,640 Speaker 3: without AI, the market would be very sad. Chant touch, 94 00:05:35,760 --> 00:05:38,680 Speaker 3: We thank you so much. Let's stay with semiconductors. Qualcom 95 00:05:38,880 --> 00:05:41,920 Speaker 3: said to wait until after the US elections to decide 96 00:05:41,920 --> 00:05:43,960 Speaker 3: whether it will put in an offer for Intel. 97 00:05:44,000 --> 00:05:45,680 Speaker 5: That's according to sources. For more. 98 00:05:45,960 --> 00:05:48,239 Speaker 3: Most Michelle Davis joins us for more what your source 99 00:05:48,279 --> 00:05:48,640 Speaker 3: is saying. 100 00:05:49,240 --> 00:05:51,880 Speaker 7: So, what we're hearing from sources is that this is 101 00:05:52,040 --> 00:05:54,760 Speaker 7: going to be a very complicated deal. If it does happen, 102 00:05:55,120 --> 00:05:58,000 Speaker 7: the bar is very high to get something over the line, 103 00:05:58,120 --> 00:06:01,640 Speaker 7: and there are huge implication on the political front. You know, 104 00:06:01,839 --> 00:06:04,440 Speaker 7: this is not just your average MNA deal where you're 105 00:06:04,440 --> 00:06:08,240 Speaker 7: just thinking about anti trust implications. There are also geopolitical ones, 106 00:06:08,279 --> 00:06:11,479 Speaker 7: and so part of why Intel or Qualcom would want 107 00:06:11,480 --> 00:06:14,680 Speaker 7: to wait before bringing its formal offers to have more 108 00:06:14,720 --> 00:06:17,680 Speaker 7: clarity about what the anti landscape will look like, but 109 00:06:17,760 --> 00:06:20,599 Speaker 7: also what the geopolitical one will look like. US China 110 00:06:20,680 --> 00:06:24,320 Speaker 7: relations in particular are very important in the semiconductor industry 111 00:06:24,320 --> 00:06:25,680 Speaker 7: and to a deal like this. 112 00:06:26,960 --> 00:06:30,480 Speaker 4: Michelle, the other part of the reporting is that sources 113 00:06:30,480 --> 00:06:34,039 Speaker 4: told us clowd Com sounded out regulators in China. What 114 00:06:34,120 --> 00:06:34,680 Speaker 4: did you learn? 115 00:06:35,440 --> 00:06:37,599 Speaker 7: So what we're hearing is that this is something that 116 00:06:37,880 --> 00:06:40,520 Speaker 7: would have been done very informally at this point. You know, 117 00:06:40,680 --> 00:06:43,880 Speaker 7: China has not weighed in on what it thinks of 118 00:06:43,920 --> 00:06:47,440 Speaker 7: a deal, but if Qualcom does come forward with it 119 00:06:47,440 --> 00:06:50,880 Speaker 7: its formal offer, it will all hinge on those US 120 00:06:51,000 --> 00:06:54,440 Speaker 7: China relations. The US has made a vested, you know, 121 00:06:54,640 --> 00:06:57,799 Speaker 7: effort to make sure that it is a national player 122 00:06:58,800 --> 00:07:01,680 Speaker 7: in chip making and it is not as reliant on China, 123 00:07:01,760 --> 00:07:04,640 Speaker 7: and China will have say over a deal like this, 124 00:07:04,800 --> 00:07:08,920 Speaker 7: and so if those relations are problematic, then then they 125 00:07:08,920 --> 00:07:10,160 Speaker 7: could try to get in the way of it. 126 00:07:10,960 --> 00:07:13,000 Speaker 5: So it's a a big consideration. 127 00:07:14,080 --> 00:07:18,040 Speaker 4: Both Qualcom and Intel declined to comment on our reporting. 128 00:07:18,040 --> 00:07:20,600 Speaker 4: Bloomberg's Michelle Davis in New York, thank you very much. 129 00:07:20,760 --> 00:07:23,960 Speaker 4: Investor focus on chips will continue after the Bell because 130 00:07:24,000 --> 00:07:27,240 Speaker 4: TSMC is going to report its earnings. Joanne Feenie, advises 131 00:07:27,320 --> 00:07:32,960 Speaker 4: Capital management partner and portfolio manager, back on Bloomberg Technology TSMC. Wow. 132 00:07:33,080 --> 00:07:37,320 Speaker 4: The timing, the accidental timing perhaps of ASML, but it 133 00:07:37,400 --> 00:07:41,480 Speaker 4: is important to think about how quickly TSMC comes because 134 00:07:41,480 --> 00:07:45,040 Speaker 4: it's the continuation of the story, right the investment cycle 135 00:07:45,200 --> 00:07:49,720 Speaker 4: into AI frankly, and whether we continue to see investment 136 00:07:49,760 --> 00:07:53,160 Speaker 4: in chip equipment, making equipment and the chips themselves. 137 00:07:53,240 --> 00:07:57,840 Speaker 8: Joanne, Yeah, And you know clearly TSMC has already released 138 00:07:57,880 --> 00:08:00,440 Speaker 8: monthly numbers, so we have a good indication that their 139 00:08:00,560 --> 00:08:03,239 Speaker 8: results are going to be solid and led by AI. 140 00:08:04,320 --> 00:08:07,920 Speaker 8: And you know, the ASML news is more about I 141 00:08:07,920 --> 00:08:11,960 Speaker 8: think China, particularly the pull forward in China for some 142 00:08:12,000 --> 00:08:17,000 Speaker 8: of that equipment ahead of increasingly severe regulations against ASML 143 00:08:17,080 --> 00:08:21,360 Speaker 8: shipping there. So forty seven percent of ASML's business comes 144 00:08:21,360 --> 00:08:23,920 Speaker 8: out of China and that's going to have a big factor. 145 00:08:24,280 --> 00:08:27,160 Speaker 8: You know, the fact that ASML did acknowledge that AI 146 00:08:27,320 --> 00:08:30,200 Speaker 8: continues to be strong but elsewhere things are weaker. You know, 147 00:08:30,200 --> 00:08:32,920 Speaker 8: it could reflect a number of things, starting with Intel 148 00:08:33,240 --> 00:08:36,520 Speaker 8: and its plans to delay some of its and cancel 149 00:08:36,640 --> 00:08:38,439 Speaker 8: some of its overseas projects. 150 00:08:38,440 --> 00:08:40,040 Speaker 4: For example, let's just. 151 00:08:39,960 --> 00:08:43,800 Speaker 3: Dig into how sad, as the CEO of ASML called it, 152 00:08:43,880 --> 00:08:46,080 Speaker 3: the rest of the market is without AI. 153 00:08:47,960 --> 00:08:50,480 Speaker 8: Yeah, I mean, we've heard from plenty of the analogship 154 00:08:50,520 --> 00:08:56,160 Speaker 8: makers like Texas Instruments, for example, that autos is weakening 155 00:08:56,320 --> 00:08:58,880 Speaker 8: and they don't know. They said, look, we don't know 156 00:08:58,920 --> 00:09:02,679 Speaker 8: how soft this is going to become. Hasn't gotten severe yet, 157 00:09:02,679 --> 00:09:04,640 Speaker 8: at least the last time we heard from them. But 158 00:09:04,760 --> 00:09:07,880 Speaker 8: on the other hand, we also have heard that inventories 159 00:09:07,920 --> 00:09:11,280 Speaker 8: have cleared in other end markets for semiconductors like industrials, 160 00:09:11,520 --> 00:09:13,440 Speaker 8: and that we're starting to see a pickup there. So 161 00:09:13,480 --> 00:09:19,120 Speaker 8: it's really hard to read ASML's comments about orders into 162 00:09:19,240 --> 00:09:22,680 Speaker 8: the broader sort of away from the leading edge chip 163 00:09:23,240 --> 00:09:27,680 Speaker 8: businesses like analog or micro controllers, and that really is 164 00:09:27,720 --> 00:09:31,240 Speaker 8: assigned those companies. Analog and micro controls really tell us 165 00:09:31,280 --> 00:09:33,160 Speaker 8: more about the broader economy. 166 00:09:32,840 --> 00:09:34,560 Speaker 2: And we know the US economy is doing well. 167 00:09:34,559 --> 00:09:37,600 Speaker 8: We know we're seeing recovery and industrial so it's sort 168 00:09:37,640 --> 00:09:40,840 Speaker 8: of hard to tell what ASML means. You know, how 169 00:09:40,920 --> 00:09:43,040 Speaker 8: much of it is China, how much of it is 170 00:09:43,080 --> 00:09:46,200 Speaker 8: Intel pushing out its plans, So it's actually not as 171 00:09:46,240 --> 00:09:47,000 Speaker 8: straightforward to read. 172 00:09:47,000 --> 00:09:48,160 Speaker 2: I think, as some people think. 173 00:09:48,040 --> 00:09:51,080 Speaker 3: It is, let's give the nuance therefore, because you're so 174 00:09:51,120 --> 00:09:52,760 Speaker 3: good at doing that, Joanne, Because this comes in the 175 00:09:52,800 --> 00:09:55,000 Speaker 3: context of the breaking news that came on Monday that 176 00:09:55,400 --> 00:09:59,400 Speaker 3: maybe we will see yet more and more well limitations 177 00:09:59,600 --> 00:10:01,880 Speaker 3: on X sports from the US and around the world 178 00:10:02,080 --> 00:10:05,319 Speaker 3: to China in video chips for example, why was in 179 00:10:05,440 --> 00:10:08,400 Speaker 3: Vidio so sold off yesterday if it's not around AI. 180 00:10:08,679 --> 00:10:11,400 Speaker 3: How much of an importance is China US to some 181 00:10:11,440 --> 00:10:12,359 Speaker 3: of these valuations. 182 00:10:13,520 --> 00:10:16,600 Speaker 8: Yeah, you know, in Vidia shouldn't really have sold off 183 00:10:16,600 --> 00:10:20,880 Speaker 8: on the ASML news yesterday, particularly because ASML said, this 184 00:10:20,920 --> 00:10:22,200 Speaker 8: is nothing to do with Ali, right. 185 00:10:22,640 --> 00:10:24,160 Speaker 4: So I think what you're seeing is. 186 00:10:24,120 --> 00:10:27,800 Speaker 8: You know, in Vidia is a big component of many ETFs, 187 00:10:28,200 --> 00:10:30,520 Speaker 8: and so you know, when you sell out of those ETFs, 188 00:10:30,559 --> 00:10:33,000 Speaker 8: the money flows out, everything in them gets sold. So 189 00:10:33,040 --> 00:10:35,600 Speaker 8: I think that was a big driver for Invidia. And 190 00:10:35,600 --> 00:10:38,560 Speaker 8: then also, you know, you could see some folks saying, 191 00:10:38,559 --> 00:10:40,760 Speaker 8: you know, let me get a little bit less exposure 192 00:10:40,800 --> 00:10:43,960 Speaker 8: to the semiconductor space overall, given how much it's rallied. 193 00:10:44,320 --> 00:10:47,400 Speaker 8: You know, that could just have been a decision made 194 00:10:47,480 --> 00:10:50,760 Speaker 8: on diversification lines. But I think it's probably the ETFs 195 00:10:50,760 --> 00:10:51,640 Speaker 8: that drove most of that. 196 00:10:52,720 --> 00:10:55,280 Speaker 4: Juanne remind us which of these names you like and 197 00:10:55,400 --> 00:10:58,680 Speaker 4: hold which you don't and why. Yeah. 198 00:10:58,720 --> 00:11:01,400 Speaker 8: So we're not involved in a SML, nor do we 199 00:11:01,559 --> 00:11:05,679 Speaker 8: like Intel here because of its significant challenges. 200 00:11:06,640 --> 00:11:07,960 Speaker 2: We do like Nvidia. 201 00:11:08,080 --> 00:11:10,080 Speaker 8: We continue to like a number of players in the 202 00:11:10,080 --> 00:11:15,560 Speaker 8: AI space, including Broadcom. So you know, overall, I think 203 00:11:15,880 --> 00:11:19,079 Speaker 8: that the economically exposed companies like Texas Instruments, we own 204 00:11:19,120 --> 00:11:19,880 Speaker 8: that for clients. 205 00:11:20,160 --> 00:11:21,040 Speaker 2: I own it myself. 206 00:11:21,960 --> 00:11:23,960 Speaker 8: I think is a good place to be given how 207 00:11:24,000 --> 00:11:25,800 Speaker 8: strong the US economy is and how much of a 208 00:11:25,840 --> 00:11:30,320 Speaker 8: recovery are seeing in industrials. Intel, you know, just faces 209 00:11:30,440 --> 00:11:33,160 Speaker 8: huge challenges to catch up in manufacturing and it just 210 00:11:33,240 --> 00:11:35,800 Speaker 8: doesn't have the expertise to do foundry work. It's a 211 00:11:35,800 --> 00:11:38,520 Speaker 8: big challenge for them to build a library that it 212 00:11:38,559 --> 00:11:41,400 Speaker 8: can then build other types of chips for. So, you know, 213 00:11:41,600 --> 00:11:44,959 Speaker 8: the Qualcomm deal, if it goes through, we suspect will 214 00:11:45,000 --> 00:11:48,679 Speaker 8: be more oriented towards Qualcom trying to acquire the design side, 215 00:11:48,920 --> 00:11:51,840 Speaker 8: and that could give Intel a massive cash infusion with 216 00:11:51,880 --> 00:11:54,320 Speaker 8: which to save the manufacturing side and really make the 217 00:11:54,360 --> 00:11:56,600 Speaker 8: investments that are necessary. But we think that's such a 218 00:11:56,600 --> 00:11:59,600 Speaker 8: long way off and so uncertain that we don't think 219 00:11:59,679 --> 00:12:01,440 Speaker 8: Intel is a place to be right now. 220 00:12:01,880 --> 00:12:05,240 Speaker 3: Joanne Feeney, so good to have you on Advisors Capital Management. 221 00:12:05,280 --> 00:12:05,840 Speaker 5: We thank you. 222 00:12:06,320 --> 00:12:09,040 Speaker 3: And coming up, what former President Trump had to say 223 00:12:09,040 --> 00:12:11,720 Speaker 3: about tech regulation in a conversation with the Bloomberg's editor 224 00:12:11,760 --> 00:12:15,240 Speaker 3: in chief, John mcklethwaite ed, you're watching a stock related 225 00:12:15,240 --> 00:12:15,440 Speaker 3: to this. 226 00:12:16,360 --> 00:12:20,040 Speaker 4: Yes, I am watching Trump Media and Technology DJT up 227 00:12:20,080 --> 00:12:22,520 Speaker 4: almost ten percent. There's a lot of writing about this 228 00:12:22,600 --> 00:12:25,080 Speaker 4: on the termin or this morning, Caro. Some people say 229 00:12:25,080 --> 00:12:27,680 Speaker 4: the Trump trade is the dollar and rates right tied 230 00:12:27,720 --> 00:12:31,439 Speaker 4: to inflation. Others just say it's DJT. I would point 231 00:12:31,440 --> 00:12:35,240 Speaker 4: out it was down significantly yesterday, it's up significantly today. 232 00:12:35,440 --> 00:12:39,120 Speaker 4: There's volatility, but the timing's curious. Based on the fascinating 233 00:12:39,160 --> 00:12:41,679 Speaker 4: interview you're about to hear, Please don't go anywhere. It 234 00:12:41,800 --> 00:12:44,480 Speaker 4: is worth listening to. This is Bloomberg Technology. 235 00:12:52,720 --> 00:12:55,599 Speaker 3: Former President Donald Trump sat down with Bloomberg editor in 236 00:12:55,679 --> 00:12:59,079 Speaker 3: chief John mclelthwaite on Tuesday for a wide ranging interview 237 00:12:59,200 --> 00:13:01,760 Speaker 3: focused on the acon included his support of tariffs, his 238 00:13:01,880 --> 00:13:04,840 Speaker 3: views on the Federal Reserve, and the future of tech regulation. 239 00:13:05,200 --> 00:13:07,040 Speaker 3: Here's what he had to say about the potential breakup 240 00:13:07,080 --> 00:13:07,600 Speaker 3: of Google. 241 00:13:08,360 --> 00:13:10,800 Speaker 9: Google's got a lot of power. They're very bad to me, 242 00:13:11,120 --> 00:13:13,840 Speaker 9: very very bad to me. I mean I can speak 243 00:13:13,880 --> 00:13:17,200 Speaker 9: from that standpoint. They only have bad stories. In other words, 244 00:13:17,200 --> 00:13:19,640 Speaker 9: if I have twenty good stories and twenty bad stories 245 00:13:20,440 --> 00:13:23,720 Speaker 9: and everyone's entitled to that, you'll only see the twenty 246 00:13:23,720 --> 00:13:27,520 Speaker 9: bad stories. And I called the head of Google the 247 00:13:27,559 --> 00:13:29,960 Speaker 9: other day and I said, I'm getting a lot of 248 00:13:29,960 --> 00:13:32,480 Speaker 9: good stories lately, but you don't find them in Google. 249 00:13:32,520 --> 00:13:33,760 Speaker 2: I think it's a whole rig deal. 250 00:13:33,800 --> 00:13:36,400 Speaker 9: I think Google's rigged, just like our government is rigged 251 00:13:36,440 --> 00:13:36,719 Speaker 9: all over. 252 00:13:36,720 --> 00:13:38,000 Speaker 2: You would break them up. 253 00:13:38,000 --> 00:13:39,320 Speaker 1: In other words, I. 254 00:13:39,400 --> 00:13:42,480 Speaker 9: Do something you have to have. Look, I give them 255 00:13:42,520 --> 00:13:45,200 Speaker 9: a lot of credit. They've become such a power, such 256 00:13:45,240 --> 00:13:48,040 Speaker 9: a power, and you've got to give them credit for that. 257 00:13:48,320 --> 00:13:51,960 Speaker 9: How they became a power is, you know, really the discussion. 258 00:13:53,120 --> 00:13:57,800 Speaker 9: At the same time, it's a very dangerous thing because 259 00:13:58,280 --> 00:14:00,760 Speaker 9: we want to have great companies. Don't want China to 260 00:14:00,800 --> 00:14:03,600 Speaker 9: have these companies. Right now, China is a friend of 261 00:14:03,679 --> 00:14:06,920 Speaker 9: Google right now. You know, China is a very powerful, 262 00:14:07,160 --> 00:14:09,080 Speaker 9: very smart group of people. 263 00:14:09,160 --> 00:14:10,200 Speaker 2: I will tell you that from. 264 00:14:10,200 --> 00:14:12,880 Speaker 10: Very personal example of a Chinese tech company at the 265 00:14:12,880 --> 00:14:17,120 Speaker 10: moment TikTok. You initially wanted to ban TikTok. Now you 266 00:14:17,280 --> 00:14:19,640 Speaker 10: like it. Apparently for some reason to do with Facebook. 267 00:14:20,280 --> 00:14:22,880 Speaker 10: There was a decision coming up. If you became president, 268 00:14:23,480 --> 00:14:25,920 Speaker 10: it's Chinese parent would have to sell it. I think 269 00:14:25,920 --> 00:14:27,200 Speaker 10: it's by January the nineteenth. 270 00:14:28,120 --> 00:14:29,400 Speaker 4: Would you force them to do that? 271 00:14:29,800 --> 00:14:33,960 Speaker 9: So I originally had it all done, and then I 272 00:14:34,000 --> 00:14:36,200 Speaker 9: said to Congress, your decision. 273 00:14:36,560 --> 00:14:37,280 Speaker 2: I said, I'm not. 274 00:14:37,200 --> 00:14:42,720 Speaker 9: Going to pull any strings nothing. Your decision. You make it. 275 00:14:42,800 --> 00:14:45,040 Speaker 9: But I had it all done and I said, you 276 00:14:45,120 --> 00:14:48,200 Speaker 9: make it, and they decided not to make it. I 277 00:14:48,240 --> 00:14:50,200 Speaker 9: didn't care if they made it or not, because to me, 278 00:14:50,240 --> 00:14:52,200 Speaker 9: it was a flip of acquiring. You know, you have 279 00:14:52,280 --> 00:14:54,800 Speaker 9: some real First Amendment problems. You have a lot of problems. 280 00:14:54,960 --> 00:14:59,040 Speaker 10: You just talked about Chinese technology, the need to defend 281 00:14:59,080 --> 00:15:02,200 Speaker 10: against it. Yeah, TikTok and the threat people see too 282 00:15:02,240 --> 00:15:05,640 Speaker 10: many kind of American children and things like that. Why 283 00:15:05,680 --> 00:15:08,480 Speaker 10: do you no longer see security threats? 284 00:15:08,760 --> 00:15:11,400 Speaker 9: I think it is a threat. Frankly, I think everything's 285 00:15:11,440 --> 00:15:15,240 Speaker 9: a threat. There's nothing that's not a threat. But sometimes 286 00:15:15,280 --> 00:15:17,200 Speaker 9: you have to fight through these threats. You know, you 287 00:15:17,240 --> 00:15:20,760 Speaker 9: can't just like Google. I'm not a fan of Google. 288 00:15:21,000 --> 00:15:24,160 Speaker 9: They treat me badly. But if you are you going 289 00:15:24,200 --> 00:15:27,320 Speaker 9: to destroy the company by doing that? If you do that, 290 00:15:27,520 --> 00:15:30,360 Speaker 9: are you going to destroy the company. What you can 291 00:15:30,440 --> 00:15:32,560 Speaker 9: do without breaking it up is make sure that it's 292 00:15:32,600 --> 00:15:33,240 Speaker 9: more fair. 293 00:15:35,440 --> 00:15:38,200 Speaker 4: That was former President Donald Trump with Bloomberg editor in 294 00:15:38,280 --> 00:15:42,040 Speaker 4: chief John Mickelfwaite. Let's review the interview with Bloomberg's Mike Shephard, 295 00:15:42,280 --> 00:15:45,520 Speaker 4: who leads our coverage of the intersection between tech and politics, 296 00:15:45,560 --> 00:15:49,360 Speaker 4: and he stopped short of suggesting a breakup of Google. 297 00:15:49,840 --> 00:15:52,960 Speaker 4: He was firmer on TikTok. What else did you learn 298 00:15:53,000 --> 00:15:55,960 Speaker 4: about his potential policy platform going forward in tech? 299 00:15:57,880 --> 00:16:00,200 Speaker 11: I think one of the biggest takeaways from that, as 300 00:16:00,280 --> 00:16:03,120 Speaker 11: he is trying to maintain some flexibility, he tried to 301 00:16:03,200 --> 00:16:07,360 Speaker 11: leave doors open on both coming down on Google, but 302 00:16:07,600 --> 00:16:11,720 Speaker 11: also maybe finding some way to play both ends against 303 00:16:11,720 --> 00:16:14,000 Speaker 11: the middle so that he doesn't have to go to 304 00:16:14,600 --> 00:16:17,920 Speaker 11: really unraveling what he was hailing during the conversation with 305 00:16:18,040 --> 00:16:22,440 Speaker 11: John as a great power. He really pointed to Google's 306 00:16:22,480 --> 00:16:24,840 Speaker 11: market cloud as something in a way to also be 307 00:16:25,080 --> 00:16:28,720 Speaker 11: envied and admired and something that gives us a geopolitical 308 00:16:28,760 --> 00:16:33,520 Speaker 11: advantage with China. We do have one signal from his 309 00:16:33,680 --> 00:16:37,000 Speaker 11: camp that there could be a continuation of this vigorous 310 00:16:37,000 --> 00:16:40,000 Speaker 11: anti trust enforcement, and that is his running mate jd. 311 00:16:40,200 --> 00:16:40,440 Speaker 4: Vance. 312 00:16:40,480 --> 00:16:45,200 Speaker 11: He has previously expressed a favorable view of how Lena 313 00:16:45,280 --> 00:16:49,760 Speaker 11: con in particular at the FTC has pursued anti competitive behavior, 314 00:16:49,920 --> 00:16:52,520 Speaker 11: especially by big tech companies, So that could give us 315 00:16:52,520 --> 00:16:54,200 Speaker 11: some sort of a clearer signal there. 316 00:16:54,800 --> 00:16:57,040 Speaker 3: Many are wondering about the signal around M and A 317 00:16:57,040 --> 00:16:59,960 Speaker 3: as well. It feels as though with an anti competitive 318 00:17:00,160 --> 00:17:01,640 Speaker 3: perspective that might be tough. 319 00:17:03,680 --> 00:17:06,480 Speaker 11: I think you're right there. And also on TikTok. One 320 00:17:06,520 --> 00:17:09,360 Speaker 11: of those stipulations, of course under the new law is 321 00:17:09,400 --> 00:17:12,240 Speaker 11: that the app be sold, and so the question is 322 00:17:12,640 --> 00:17:16,639 Speaker 11: would this really valuable asset enter the market someplace. And 323 00:17:16,680 --> 00:17:20,040 Speaker 11: again here in the interview, Trump is really playing both 324 00:17:20,119 --> 00:17:22,520 Speaker 11: ends against the middle. He did not say for sure 325 00:17:22,600 --> 00:17:25,480 Speaker 11: that he would enforce the new law that President Joe 326 00:17:25,480 --> 00:17:29,280 Speaker 11: Biden signed at the end of at the end of 327 00:17:29,320 --> 00:17:32,520 Speaker 11: April as part of a larger foreign a bill. And likewise, 328 00:17:32,600 --> 00:17:36,040 Speaker 11: in your conversation with our colleague Michelle Davis, we saw 329 00:17:36,320 --> 00:17:40,639 Speaker 11: signs in other companies Qualcomm in particular that they have 330 00:17:40,760 --> 00:17:44,280 Speaker 11: reservations about making any kind of a move before they 331 00:17:44,320 --> 00:17:47,080 Speaker 11: know how this election is shaping up, because the environment 332 00:17:47,160 --> 00:17:50,480 Speaker 11: could actually become very different when it can't comes to regulation. 333 00:17:50,920 --> 00:17:53,080 Speaker 5: Mike Sheppard, we appreciate it. Thank you. 334 00:18:01,440 --> 00:18:04,320 Speaker 4: Day two of Bloomberg City Lab Summit in Mexico City, 335 00:18:04,400 --> 00:18:08,320 Speaker 4: over five hundred mayors and policymakers, including those from Kiev, Ukraine. 336 00:18:08,480 --> 00:18:12,720 Speaker 4: Four million is being provided by Bloomberg Philanthropies for digital 337 00:18:12,760 --> 00:18:17,320 Speaker 4: projects in Ukraine. Bloomberg Philanthropies is the philanthropic organization of 338 00:18:17,400 --> 00:18:20,800 Speaker 4: Michael Bloomberg. Kiev is a city using AI for everything 339 00:18:20,800 --> 00:18:25,040 Speaker 4: from urban planning, predictive AI for transport, to infrastructure maintenance 340 00:18:25,240 --> 00:18:28,520 Speaker 4: and even security. City of Kiev, Ukraine, Advisor to the 341 00:18:28,560 --> 00:18:32,680 Speaker 4: Mayor and head of Digitalization, Oleg Polovinku joins us now, 342 00:18:33,040 --> 00:18:35,159 Speaker 4: good morning to you. What is it you hope to 343 00:18:35,200 --> 00:18:39,600 Speaker 4: achieve your city? With all of your peers there in attendance. 344 00:18:42,640 --> 00:18:47,400 Speaker 12: Hello everyone, thank you for hosting me. Definitely Ukraine now 345 00:18:47,560 --> 00:18:49,200 Speaker 12: and the city of the Key of in the most 346 00:18:49,280 --> 00:18:54,679 Speaker 12: challengeable time, and we're doing our best and using digitalization 347 00:18:55,000 --> 00:19:01,160 Speaker 12: to help our residents achieve services from the city and 348 00:19:02,600 --> 00:19:06,320 Speaker 12: use it inconvenient and comfortable way. 349 00:19:07,200 --> 00:19:11,560 Speaker 3: Just how difficult is it to implement technological innovation at 350 00:19:11,560 --> 00:19:13,560 Speaker 3: this moment in a moment of war. 351 00:19:17,800 --> 00:19:22,680 Speaker 12: First of all, we are having our super app which 352 00:19:23,560 --> 00:19:28,480 Speaker 12: downloaded more than three point nine million users in case 353 00:19:28,800 --> 00:19:32,560 Speaker 12: that we have three point six residents. Of course, it's 354 00:19:32,600 --> 00:19:37,080 Speaker 12: not all residents downloaded this super app, but the refugees 355 00:19:37,240 --> 00:19:40,679 Speaker 12: from other regions who came in the key already downloaded. 356 00:19:41,359 --> 00:19:45,360 Speaker 12: The main goal of this application is provide critical notification 357 00:19:45,520 --> 00:19:51,000 Speaker 12: to our users to help them find bomb shelters, hitting point, 358 00:19:51,480 --> 00:19:55,520 Speaker 12: any help and services what they need in the city 359 00:19:55,560 --> 00:19:58,840 Speaker 12: when they arrive there, when they live there. Because we're 360 00:19:58,880 --> 00:20:04,520 Speaker 12: facing the out electricity outrange and in this moment, citizens 361 00:20:04,560 --> 00:20:07,600 Speaker 12: have to know how to survive in the city, so 362 00:20:07,640 --> 00:20:09,359 Speaker 12: they use our application for that. 363 00:20:10,640 --> 00:20:13,160 Speaker 3: I can imagine the mental health support that you're able 364 00:20:13,200 --> 00:20:15,520 Speaker 3: to give, the information that you're able to give. 365 00:20:15,840 --> 00:20:19,120 Speaker 5: What about future investment? Where are you allocating? Is it 366 00:20:19,200 --> 00:20:21,520 Speaker 5: all about the help of generative AI. 367 00:20:21,480 --> 00:20:25,080 Speaker 3: Within these super apps to be some help within mental 368 00:20:25,080 --> 00:20:29,320 Speaker 3: health discussions? Is it about more logistical information? 369 00:20:29,560 --> 00:20:30,920 Speaker 5: What are you talking about. 370 00:20:33,640 --> 00:20:34,000 Speaker 4: Now? 371 00:20:34,280 --> 00:20:38,360 Speaker 12: That functionality what we already providing. It's about transportation, it's 372 00:20:38,400 --> 00:20:43,840 Speaker 12: about safety, civil defense function But you understand that the 373 00:20:43,920 --> 00:20:49,560 Speaker 12: residents of the city having ptserve because twice per day 374 00:20:49,880 --> 00:20:54,680 Speaker 12: the missile attack alarms and they are really tired about 375 00:20:55,080 --> 00:20:58,240 Speaker 12: all of that. That's why somes to Bloom the philanthropists. 376 00:20:58,240 --> 00:21:02,960 Speaker 12: We are now developing the project in mental health area, 377 00:21:03,040 --> 00:21:07,800 Speaker 12: which helps test yourself in the application and after that 378 00:21:07,960 --> 00:21:13,280 Speaker 12: provide additional recommendations and services which helps you improve your 379 00:21:13,280 --> 00:21:19,480 Speaker 12: mental health. And additional AI technology helps us to make 380 00:21:19,560 --> 00:21:25,080 Speaker 12: services and provide services for residents more efficiency. This is 381 00:21:25,160 --> 00:21:31,119 Speaker 12: like call center providing additional services, making recommendations. 382 00:21:31,680 --> 00:21:34,359 Speaker 4: Or like very quickly, which area of your city do 383 00:21:34,400 --> 00:21:43,080 Speaker 4: you need to modernize the most? Excuse me, which area 384 00:21:43,119 --> 00:21:45,560 Speaker 4: of your city do you need to modernize? First? 385 00:21:49,280 --> 00:21:52,320 Speaker 12: Oh, this is the areas that we are covering. This 386 00:21:52,480 --> 00:21:55,960 Speaker 12: is a civil defense, this is a transportation, this is 387 00:21:56,280 --> 00:22:00,000 Speaker 12: self testing and self improvement of the residents. 388 00:22:00,119 --> 00:22:00,239 Speaker 6: Right. 389 00:22:01,000 --> 00:22:02,880 Speaker 5: Oh, leg, it's so good to have some of your time. 390 00:22:02,920 --> 00:22:04,359 Speaker 3: The key of advisor to the Mayor and head of 391 00:22:04,359 --> 00:22:16,320 Speaker 3: Digitalization Olegrinco. We'llcome back to Bluemore Technology. I'm Caroline Hyde 392 00:22:16,320 --> 00:22:16,960 Speaker 3: in New York. 393 00:22:17,200 --> 00:22:19,000 Speaker 4: That I made Ludlow in San Francisco. 394 00:22:19,320 --> 00:22:21,640 Speaker 3: Check on these market said, because while we're still trying 395 00:22:21,680 --> 00:22:25,960 Speaker 3: to digest the shock enhouncement earnings from ASML, chip equipment maker, 396 00:22:26,040 --> 00:22:29,160 Speaker 3: which really managed to pummel some of the chip sector yesterday. 397 00:22:29,520 --> 00:22:31,760 Speaker 3: Today we see a little bit of aprief. We're only 398 00:22:31,760 --> 00:22:33,359 Speaker 3: off by bad a tenth of a percent. We're seeming 399 00:22:33,400 --> 00:22:35,320 Speaker 3: to be flip flopping between gains and losses on the 400 00:22:35,400 --> 00:22:37,720 Speaker 3: Nasdaq one hundred more broadly, off by a tenth of 401 00:22:37,720 --> 00:22:39,840 Speaker 3: a percent. But drill into some of the individual movers, 402 00:22:39,880 --> 00:22:41,919 Speaker 3: because despite the CEO. 403 00:22:41,800 --> 00:22:43,320 Speaker 5: Now speaking out, coming out to. 404 00:22:43,280 --> 00:22:46,960 Speaker 3: Investors to explain the numbers, ASML still under pressure. Let's 405 00:22:46,960 --> 00:22:48,480 Speaker 3: just move on to see what it's doing in terms 406 00:22:48,480 --> 00:22:51,680 Speaker 3: of its ADRs where are traded in the United States. 407 00:22:51,840 --> 00:22:55,000 Speaker 3: We've seen ASML under some pressure. We're currently off by 408 00:22:55,040 --> 00:22:57,240 Speaker 3: more than five percent. Interestingly, though the chip set to 409 00:22:57,280 --> 00:23:00,480 Speaker 3: more broadly is bouncing back. Video in the green. Because look, 410 00:23:00,520 --> 00:23:03,679 Speaker 3: this isn't an AI growth story. Many at pains to 411 00:23:03,720 --> 00:23:06,359 Speaker 3: explain that actually AI really remains the bright spot. The 412 00:23:06,440 --> 00:23:10,200 Speaker 3: sad spot is perhaps the consumer tech area, particularly PC 413 00:23:10,359 --> 00:23:12,880 Speaker 3: volume smartphone. That is why perhaps we see Apple under 414 00:23:12,880 --> 00:23:14,119 Speaker 3: pressure by one point four percent. 415 00:23:14,240 --> 00:23:18,119 Speaker 4: End. Okay, some news from the aerospace sector air buses 416 00:23:18,200 --> 00:23:21,879 Speaker 4: joining Boeing in cost cutting measures. The European plane maker 417 00:23:22,040 --> 00:23:24,320 Speaker 4: will cut up to twenty five hundred jobs in its 418 00:23:24,359 --> 00:23:28,240 Speaker 4: defense and space division. That's equivalent to about seven percent 419 00:23:28,320 --> 00:23:31,520 Speaker 4: of its entire workforce. The companies decided that it needs 420 00:23:31,560 --> 00:23:33,840 Speaker 4: to step up in order to adapt to what it 421 00:23:33,920 --> 00:23:37,640 Speaker 4: called an increasingly difficult space market. 422 00:23:37,840 --> 00:23:41,680 Speaker 3: Carrot, let's just stick with space because AST space Mobile 423 00:23:41,760 --> 00:23:45,240 Speaker 3: is building the first and only cellular broadband network from space. 424 00:23:45,520 --> 00:23:47,800 Speaker 3: It's working with the giants like AT and T, Google, 425 00:23:47,920 --> 00:23:50,520 Speaker 3: Verizon and more, and that makes it the biggest competitor 426 00:23:50,560 --> 00:23:54,000 Speaker 3: to SpaceX in the director sell business. Let's discuss all 427 00:23:54,040 --> 00:23:57,000 Speaker 3: of this as President Scottsnewski, who joins us in the 428 00:23:57,119 --> 00:24:00,440 Speaker 3: studio and Scott many are trying to work out how 429 00:24:00,480 --> 00:24:03,960 Speaker 3: realistic You've got satellites into space. Did that on September 430 00:24:04,000 --> 00:24:06,760 Speaker 3: the twelfth, but there are more to be built, plenty more. 431 00:24:06,920 --> 00:24:08,160 Speaker 5: How are you on this journey? 432 00:24:08,720 --> 00:24:10,760 Speaker 1: Well, we've been at this, and thank you for having us, 433 00:24:10,760 --> 00:24:13,080 Speaker 1: but we've been at this for about seven years now. 434 00:24:13,920 --> 00:24:16,520 Speaker 1: Our network is purpose built just for the space based 435 00:24:16,560 --> 00:24:19,560 Speaker 1: cellular broadband opportunity, and it's purpose built for the operators. 436 00:24:19,800 --> 00:24:21,840 Speaker 1: So we've been working with many of these operators for 437 00:24:22,080 --> 00:24:24,520 Speaker 1: over five years now, and you mentioned a few. We 438 00:24:24,600 --> 00:24:27,320 Speaker 1: have many more abroad as well, and so for us, 439 00:24:27,960 --> 00:24:31,679 Speaker 1: the first step was to launch these first five commercial satellites. 440 00:24:32,160 --> 00:24:34,680 Speaker 1: We'll have more to come starting in Q one, twenty 441 00:24:34,720 --> 00:24:37,080 Speaker 1: twenty five, and our goal is to get about forty 442 00:24:37,119 --> 00:24:39,280 Speaker 1: five to sixty in the US in order to provide 443 00:24:40,160 --> 00:24:43,000 Speaker 1: twenty four to seven commercial service to your phone with 444 00:24:43,040 --> 00:24:44,399 Speaker 1: no modification to your phone. 445 00:24:45,119 --> 00:24:49,000 Speaker 4: Scott, thanks for coming on Bloomberg Technology. Your ability to 446 00:24:49,119 --> 00:24:55,280 Speaker 4: serve the world directly correlates to this constellation in orbit right, 447 00:24:55,480 --> 00:24:58,840 Speaker 4: So from that perspective, just explain to us the timeline 448 00:24:58,920 --> 00:25:03,520 Speaker 4: for expansion, but your ability to serve those markets on Earth. 449 00:25:03,800 --> 00:25:06,960 Speaker 1: Right, Well, we importantly are low Earth orbit network, which 450 00:25:07,000 --> 00:25:10,040 Speaker 1: like you said, means we're global, and that's a problem 451 00:25:10,080 --> 00:25:12,520 Speaker 1: and that you need many satellites. But once you're operational, 452 00:25:12,640 --> 00:25:15,400 Speaker 1: you can service many markets. And that's why we've put 453 00:25:15,440 --> 00:25:19,720 Speaker 1: together this network of forty five plus partnerships globally with 454 00:25:19,800 --> 00:25:23,560 Speaker 1: the mobile network operators who cover collectively over two point 455 00:25:23,600 --> 00:25:27,119 Speaker 1: eight billion subscribers. So that network is something that we 456 00:25:27,160 --> 00:25:29,280 Speaker 1: want to build quickly. Our partners want to build quickly. 457 00:25:29,280 --> 00:25:31,399 Speaker 1: It's a service we want to bring to market and 458 00:25:31,440 --> 00:25:33,360 Speaker 1: we're going to start doing beta service with these first 459 00:25:33,400 --> 00:25:37,160 Speaker 1: five satellites thirty plus minutes a day as soon as 460 00:25:37,160 --> 00:25:40,880 Speaker 1: we continue commission the satellites here in orbit. So from 461 00:25:40,920 --> 00:25:43,560 Speaker 1: there we're vertically integrated, which we think is very important 462 00:25:44,000 --> 00:25:46,800 Speaker 1: for what we're doing. We're based in Texas, we have 463 00:25:47,040 --> 00:25:50,119 Speaker 1: our key hubs here in the United States, in addition 464 00:25:50,200 --> 00:25:53,040 Speaker 1: being publicly traded and based here, and so for us 465 00:25:53,560 --> 00:25:57,280 Speaker 1: getting that factory at full speed, we believe our capacity 466 00:25:57,320 --> 00:25:59,040 Speaker 1: is up to six satellites a month, and these are 467 00:25:59,080 --> 00:26:03,439 Speaker 1: big satellites, very specialized for this application. We're going to 468 00:26:03,440 --> 00:26:05,639 Speaker 1: be building those very rapidly. We've announced that we're in 469 00:26:05,760 --> 00:26:08,199 Speaker 1: interestroduction for the next seventeen and we need to get 470 00:26:08,240 --> 00:26:09,840 Speaker 1: to that forty five to sixty number as soon as 471 00:26:09,840 --> 00:26:10,160 Speaker 1: we can. 472 00:26:10,600 --> 00:26:13,000 Speaker 4: So that is interesting. Caroline and I were at rocket 473 00:26:13,080 --> 00:26:16,080 Speaker 4: Lab Friday for a special show, and what I found 474 00:26:16,119 --> 00:26:19,719 Speaker 4: so fascinating about that is that their limiting factor is 475 00:26:19,760 --> 00:26:22,800 Speaker 4: not their ability to build rockets and launch, it's the 476 00:26:22,880 --> 00:26:26,000 Speaker 4: customers sending things up. So what is your limiting factor? 477 00:26:26,080 --> 00:26:30,480 Speaker 4: It sounds like you can build, is it your launch provider? 478 00:26:31,359 --> 00:26:33,480 Speaker 4: What's kind of the limit on growth? 479 00:26:34,400 --> 00:26:37,040 Speaker 1: Yeah? For us, again, going back and being vertically integrated. 480 00:26:37,080 --> 00:26:39,720 Speaker 1: We control most of the inputs to the supply chain 481 00:26:39,920 --> 00:26:42,720 Speaker 1: and in manufacturing, So for us, we've had a lot 482 00:26:42,720 --> 00:26:46,639 Speaker 1: of success so far this year raising capital. We control 483 00:26:47,359 --> 00:26:50,840 Speaker 1: the manufacturing and supply chain, and we have great partners, 484 00:26:51,160 --> 00:26:52,639 Speaker 1: some of which you just put up on the screen. 485 00:26:52,800 --> 00:26:55,840 Speaker 1: So we believe that the ball is largely in our court. 486 00:26:56,000 --> 00:26:59,160 Speaker 1: Still a lot to work through, but we control most 487 00:26:59,200 --> 00:27:01,879 Speaker 1: of the inputs, action and the ability to deliver the service, 488 00:27:01,960 --> 00:27:03,720 Speaker 1: and we're in a race to get it up to 489 00:27:03,800 --> 00:27:04,840 Speaker 1: orbit as soon as possible. 490 00:27:05,000 --> 00:27:07,520 Speaker 3: Talking of capital that you managed to raise, I mean 491 00:27:07,680 --> 00:27:08,959 Speaker 3: you're potentially going to sell more. 492 00:27:09,000 --> 00:27:09,240 Speaker 4: Stop. 493 00:27:09,280 --> 00:27:12,119 Speaker 3: We're up three hundred percent here to date, you have 494 00:27:12,240 --> 00:27:17,280 Speaker 3: been the best performing Russell two thousand name record highs 495 00:27:17,400 --> 00:27:20,800 Speaker 3: thirteen hundred percent up from its previous slow but thirty 496 00:27:20,840 --> 00:27:23,919 Speaker 3: percent of the outstanding shares are shorted. What do you 497 00:27:23,960 --> 00:27:27,040 Speaker 3: say to those shorts who are worried about the ability 498 00:27:27,080 --> 00:27:30,240 Speaker 3: to make this discussion and reality right? 499 00:27:30,480 --> 00:27:32,720 Speaker 1: What we think what we have is very highly differentiated 500 00:27:32,760 --> 00:27:35,120 Speaker 1: technology and excellent partners that we've. 501 00:27:34,920 --> 00:27:36,720 Speaker 5: Been able like SpaceX that you're competing against. 502 00:27:36,760 --> 00:27:40,080 Speaker 1: Yes, exactly, so what we're doing is very different. Cellular 503 00:27:40,119 --> 00:27:43,520 Speaker 1: broadband from space is very different from SOS or texts, 504 00:27:43,560 --> 00:27:46,760 Speaker 1: so we think that we're very useful to the operators 505 00:27:46,760 --> 00:27:49,240 Speaker 1: who've partnered with us. We're very we're going to provide 506 00:27:49,359 --> 00:27:52,320 Speaker 1: a service that's very, very important to the consumer. You know, 507 00:27:52,320 --> 00:27:54,080 Speaker 1: when our phone doesn't work, it weighs very heavy in 508 00:27:54,119 --> 00:27:57,000 Speaker 1: our pocket. So we think that the demand for our 509 00:27:57,040 --> 00:28:00,919 Speaker 1: service is very significant and we're pushing as fast as 510 00:28:00,960 --> 00:28:03,000 Speaker 1: we can. Our stock has performed well on the back 511 00:28:03,080 --> 00:28:06,199 Speaker 1: of I think our success this year. But for us, 512 00:28:06,240 --> 00:28:08,480 Speaker 1: we have to produce for our shareholders and for our customers, 513 00:28:08,520 --> 00:28:11,200 Speaker 1: and we're very eager to do that. As we discussed 514 00:28:12,040 --> 00:28:16,160 Speaker 1: on the capital side, we've announced success with the US 515 00:28:16,200 --> 00:28:20,480 Speaker 1: government as a customer and prepayments with many of our 516 00:28:20,520 --> 00:28:25,639 Speaker 1: top providers customers who will get initial access to our network. 517 00:28:25,680 --> 00:28:28,920 Speaker 1: So for us, the stock has performed well, but we've 518 00:28:29,520 --> 00:28:32,320 Speaker 1: offerings in twenty twenty five and twenty twenty four and 519 00:28:32,359 --> 00:28:33,600 Speaker 1: we've plan to stick with that. 520 00:28:34,320 --> 00:28:36,280 Speaker 4: Scott, I'm sorry I'm pushing my luck with time, but 521 00:28:36,400 --> 00:28:39,880 Speaker 4: the team know that I'm excited about this area. Explain 522 00:28:39,920 --> 00:28:42,160 Speaker 4: how it works from a revenue split perspective. So if 523 00:28:42,160 --> 00:28:45,520 Speaker 4: I use my phone in my pocket, you're partnering with 524 00:28:45,560 --> 00:28:49,240 Speaker 4: the carrier AT and T. It's your constellation and your technology, 525 00:28:49,760 --> 00:28:52,240 Speaker 4: but you need to kind of split who's making money 526 00:28:52,240 --> 00:28:56,040 Speaker 4: in the transaction. Explain that very quickly, please well. 527 00:28:56,080 --> 00:28:59,360 Speaker 1: Our organizing principle from the beginning has been a revenue share, 528 00:28:59,480 --> 00:29:03,280 Speaker 1: so a service that's unique, it's supplemental to the coverage 529 00:29:03,320 --> 00:29:05,920 Speaker 1: that our partners provide, and it's a service that will 530 00:29:05,960 --> 00:29:08,920 Speaker 1: be provided through that partner. So for us, our organizing 531 00:29:08,920 --> 00:29:12,120 Speaker 1: principle has been a revenue share with all of our customers. 532 00:29:12,600 --> 00:29:15,640 Speaker 1: There's many ways to go to market that are very interesting, 533 00:29:15,800 --> 00:29:18,880 Speaker 1: and we'll be flexible by market, but at its core, 534 00:29:19,560 --> 00:29:22,440 Speaker 1: we want to drive new revenue, new growth, help our 535 00:29:22,480 --> 00:29:26,560 Speaker 1: customers reduce churn by making their service more valuable, and 536 00:29:26,640 --> 00:29:28,960 Speaker 1: in that process we show the revenue. 537 00:29:29,320 --> 00:29:32,080 Speaker 3: Come on when you hit those targets. AST Space Mobile 538 00:29:32,120 --> 00:29:34,520 Speaker 3: President Scott asnews Key. We thank you for your time 539 00:29:34,640 --> 00:29:35,760 Speaker 3: and what have we got coming up? 540 00:29:36,160 --> 00:29:38,560 Speaker 4: Yes, more news in talkie tech First start check out 541 00:29:38,560 --> 00:29:41,960 Speaker 4: this terminal CHARTSML has officially lost its place as your 542 00:29:42,160 --> 00:29:46,200 Speaker 4: most Valuable Tech company to software firm SAP. That's, of course, 543 00:29:46,240 --> 00:29:50,200 Speaker 4: after a guidance cut sent the Dutch chip makers shares plunging. 544 00:29:50,560 --> 00:29:53,640 Speaker 4: As mentioned earlier, SML lost about sixty five billion dollars 545 00:29:53,680 --> 00:29:56,320 Speaker 4: in market cap in that session, also booked only about 546 00:29:56,400 --> 00:30:00,000 Speaker 4: half the orders that analysts were expecting. In Q three plus, 547 00:30:00,080 --> 00:30:03,760 Speaker 4: Airbnb's launched a new feature that allows homeowners to hire 548 00:30:03,800 --> 00:30:07,440 Speaker 4: fellow hosts to manage their rentals. The idea for hosts 549 00:30:07,440 --> 00:30:10,240 Speaker 4: to have a new resource to furnish their home, managed 550 00:30:10,240 --> 00:30:14,200 Speaker 4: bookings and coordinate guest logistics. Airbnb hopes the new feature 551 00:30:14,240 --> 00:30:18,360 Speaker 4: will help boost listings and paramounts. Three co CEOs will 552 00:30:18,360 --> 00:30:21,760 Speaker 4: get paid even if they're not the boss. According to 553 00:30:21,840 --> 00:30:24,680 Speaker 4: a regulatory filing, they will receive their improved annual cash 554 00:30:24,720 --> 00:30:28,320 Speaker 4: bonuses even if they're replaced. Paramounts in the process of 555 00:30:28,400 --> 00:30:31,640 Speaker 4: merging with Skydance Media and the new CEO's expected has 556 00:30:31,720 --> 00:30:34,800 Speaker 4: been named when the deal closes in the first half 557 00:30:35,080 --> 00:30:35,760 Speaker 4: of next year. 558 00:30:35,880 --> 00:30:38,160 Speaker 3: Karro coming up, we're going to be talking another of 559 00:30:38,200 --> 00:30:42,080 Speaker 3: your favorite zed Jason Chairman, Convoy, co founder, managing partner 560 00:30:42,120 --> 00:30:45,440 Speaker 3: on the state of the gaming industry and investments. 561 00:30:45,800 --> 00:30:54,640 Speaker 5: As a bluebog technology. 562 00:30:56,720 --> 00:30:59,760 Speaker 4: Convoy estimates the gaming market size to reach one hundred 563 00:30:59,800 --> 00:31:02,920 Speaker 4: eighty eight billion dollars this year with VC funding in 564 00:31:03,000 --> 00:31:07,080 Speaker 4: games reaching five hundred and seventeen million so far more 565 00:31:07,080 --> 00:31:10,240 Speaker 4: in that landscape, including the impact of AI Convoy co 566 00:31:10,360 --> 00:31:13,479 Speaker 4: founder and managing partner Jason Chapman joins us, Now, I 567 00:31:13,520 --> 00:31:16,040 Speaker 4: find that so interesting. We can get into the health 568 00:31:16,080 --> 00:31:19,280 Speaker 4: of this industry a little bit, but the sheer size 569 00:31:19,320 --> 00:31:23,320 Speaker 4: of the overall industry, the size one hundred and eighty eight, 570 00:31:24,120 --> 00:31:25,680 Speaker 4: why is that important? 571 00:31:26,880 --> 00:31:29,080 Speaker 13: I mean, baby one, thank you ed, thank you Carolin 572 00:31:29,120 --> 00:31:32,240 Speaker 13: for having me. Yes, gaming is the most significant portion 573 00:31:32,360 --> 00:31:36,440 Speaker 13: of the entertainment market today. Right. We're larger than linear TV, 574 00:31:36,520 --> 00:31:41,360 Speaker 13: We're larger than OTT, we're larger than movies, music in 575 00:31:41,400 --> 00:31:44,720 Speaker 13: many cases some of those industries combined. Gaming has continued 576 00:31:44,720 --> 00:31:48,320 Speaker 13: to grow. It's proven, that's recession resilient. It's been tested 577 00:31:48,360 --> 00:31:50,640 Speaker 13: and tried in just about every way, shape and form. 578 00:31:50,640 --> 00:31:51,320 Speaker 2: And yes, we're. 579 00:31:51,200 --> 00:31:54,880 Speaker 13: Really pleased to see that funding has normalized. You know, 580 00:31:54,920 --> 00:31:57,800 Speaker 13: the last six quarters were seen roughly around five hundred 581 00:31:57,800 --> 00:31:59,760 Speaker 13: and six hundred million dollars with usted on a quarterly 582 00:31:59,800 --> 00:32:03,400 Speaker 13: based this into games and we see no reason that 583 00:32:03,400 --> 00:32:06,600 Speaker 13: that will stop. And that, paired with interest rates driving down, 584 00:32:07,000 --> 00:32:10,120 Speaker 13: open up the IPO markets pretty polish. On a twenty 585 00:32:10,160 --> 00:32:10,840 Speaker 13: twenty five. 586 00:32:10,640 --> 00:32:11,640 Speaker 4: For games, Jason. 587 00:32:11,760 --> 00:32:15,080 Speaker 3: Given the size, the sheer scale of the overall industry, 588 00:32:15,240 --> 00:32:16,880 Speaker 3: how much of a chunk of change does it get 589 00:32:16,920 --> 00:32:20,280 Speaker 3: in the VC area? Is it synonymous to the extent 590 00:32:20,320 --> 00:32:22,480 Speaker 3: of its size and entertainment broadly. 591 00:32:23,240 --> 00:32:25,600 Speaker 13: Yes, So if you look at you know, larger venture, 592 00:32:25,640 --> 00:32:28,400 Speaker 13: there's about fifty to sixty billion dollars invested a quarter. 593 00:32:29,240 --> 00:32:31,400 Speaker 13: We're seeing about five hundred and six hundred million of 594 00:32:31,400 --> 00:32:34,760 Speaker 13: that in games, so it is a significant portion. It's 595 00:32:34,800 --> 00:32:36,440 Speaker 13: also a lot more stable. I think you see a 596 00:32:36,440 --> 00:32:38,920 Speaker 13: lot less flash in the pans as you're seen right now. 597 00:32:39,000 --> 00:32:40,520 Speaker 13: You know, a couple of years ago in Web three 598 00:32:40,640 --> 00:32:43,360 Speaker 13: or this year you're seeing in AI. Gaming is kind 599 00:32:43,360 --> 00:32:45,320 Speaker 13: of steady state, and so we're very pleased to see that. 600 00:32:45,640 --> 00:32:48,400 Speaker 13: We're expecting to see you know, continued interest this you know, 601 00:32:48,560 --> 00:32:50,680 Speaker 13: rounting out this year, and also we a to twenty 602 00:32:50,680 --> 00:32:51,120 Speaker 13: twenty five. 603 00:32:52,840 --> 00:32:54,320 Speaker 3: I want to just try out if we can get 604 00:32:54,320 --> 00:32:56,200 Speaker 3: all three of us on screen for a moment, because 605 00:32:56,920 --> 00:33:00,680 Speaker 3: we had such a fun conversation last week. We're in 606 00:33:00,840 --> 00:33:04,200 Speaker 3: LA We're discussing sort of the industry more broadly when 607 00:33:04,240 --> 00:33:07,120 Speaker 3: it comes to gaming, and we had a legend from 608 00:33:07,120 --> 00:33:09,960 Speaker 3: Blizzard join the show has got a news studio, but 609 00:33:10,040 --> 00:33:13,000 Speaker 3: there is still a lot to sort of focus on 610 00:33:13,040 --> 00:33:14,840 Speaker 3: when it comes to the development of games and how 611 00:33:14,880 --> 00:33:15,479 Speaker 3: hard it is. 612 00:33:16,360 --> 00:33:19,080 Speaker 4: Right, you're talking about Mike Morheim, and last night I 613 00:33:19,160 --> 00:33:21,480 Speaker 4: was at an event with Jason Schreier with loads of 614 00:33:21,480 --> 00:33:24,800 Speaker 4: developers in the room, And the reason I'm so fixated 615 00:33:24,840 --> 00:33:27,800 Speaker 4: on Jason's one hundred and eighty eight billion number is 616 00:33:27,840 --> 00:33:30,960 Speaker 4: it's getting bigger. But all the people in that room Jason, 617 00:33:31,000 --> 00:33:35,600 Speaker 4: who were developers would tell you that they're suffering layoffs 618 00:33:35,600 --> 00:33:39,840 Speaker 4: at video game publishers, and developers are increasing the crunch. 619 00:33:40,200 --> 00:33:42,920 Speaker 4: The crunch, you know exactly what that is, is more 620 00:33:42,960 --> 00:33:45,640 Speaker 4: real than ever. So why is the industry getting bigger? 621 00:33:47,040 --> 00:33:49,160 Speaker 13: I mean, I think it's getting bigger because people continue 622 00:33:49,200 --> 00:33:51,600 Speaker 13: to want to spend time in interactive environments. You know, 623 00:33:51,960 --> 00:33:54,000 Speaker 13: if you look at younger generations, they're spending less and 624 00:33:54,080 --> 00:33:56,640 Speaker 13: less time watching TV, which is passive. They want to 625 00:33:56,640 --> 00:33:59,360 Speaker 13: be in an environment that they could interact impact and 626 00:33:59,400 --> 00:34:02,600 Speaker 13: so that's absolutely true. Why is there the crunching games 627 00:34:02,880 --> 00:34:06,040 Speaker 13: people talk about this a lot, is because look, users 628 00:34:06,040 --> 00:34:09,000 Speaker 13: are very demanding. We expect a lot from our games. 629 00:34:09,200 --> 00:34:11,960 Speaker 13: We've been spoiled over the years. We have great creatives 630 00:34:12,000 --> 00:34:14,279 Speaker 13: producing high quality content that we get to enjoy on 631 00:34:14,320 --> 00:34:17,040 Speaker 13: a daily and weekly basis, and that's never going to stop. 632 00:34:17,880 --> 00:34:19,600 Speaker 4: I think you're talking about the layoffs. 633 00:34:19,680 --> 00:34:22,600 Speaker 13: Yes, we've seen about thirteen thousand jobs lost in the 634 00:34:22,600 --> 00:34:24,880 Speaker 13: games industry that we've tracked from the public companies. It's 635 00:34:25,000 --> 00:34:27,480 Speaker 13: likely a lot higher if you include private companies. We 636 00:34:27,600 --> 00:34:30,560 Speaker 13: expect it we'll see more, and I think that's a 637 00:34:30,600 --> 00:34:32,560 Speaker 13: healthy thing in industry. I know that's really hard to 638 00:34:32,600 --> 00:34:35,480 Speaker 13: say and hard to hear, but we over hired during 639 00:34:35,520 --> 00:34:38,160 Speaker 13: the boom era. We're going through right sizing now and 640 00:34:38,239 --> 00:34:40,760 Speaker 13: it's really encouraging to see that even in that right sizing, 641 00:34:41,120 --> 00:34:44,480 Speaker 13: our industry continues to thrive and to grow. And that 642 00:34:45,000 --> 00:34:47,040 Speaker 13: is an encouraging reality, I think for those in the games, 643 00:34:47,040 --> 00:34:48,320 Speaker 13: and one that we should all remember. 644 00:34:49,000 --> 00:34:52,120 Speaker 3: What's not healthy at the moment is child safety and 645 00:34:52,200 --> 00:34:53,879 Speaker 3: lo I've got a seven year old at home who 646 00:34:53,920 --> 00:34:57,200 Speaker 3: is desperate to be on roadblocks and on Minecraft instead. 647 00:34:57,200 --> 00:34:59,400 Speaker 3: I had in books about it because I've got to 648 00:34:59,400 --> 00:35:02,839 Speaker 3: get my safety precautions and get understand how I make 649 00:35:02,920 --> 00:35:05,359 Speaker 3: him safe online before I let him do it. How 650 00:35:05,400 --> 00:35:09,040 Speaker 3: are you thinking about what's happening versus TikTok, the Child's Safety. 651 00:35:08,719 --> 00:35:11,480 Speaker 5: Bill, and also how that in broils things like roadblogs. 652 00:35:12,080 --> 00:35:14,120 Speaker 13: As kids spend more and more time online. And I 653 00:35:14,160 --> 00:35:16,160 Speaker 13: have a lot of empathy for this as a parent myself. 654 00:35:16,680 --> 00:35:19,439 Speaker 13: You have to take that very seriously in every way, 655 00:35:19,440 --> 00:35:22,920 Speaker 13: shape and form. Right, So, wherever this is and wherever 656 00:35:22,960 --> 00:35:24,359 Speaker 13: it is, that's where you need to. 657 00:35:24,280 --> 00:35:25,000 Speaker 4: Protect the kids. 658 00:35:25,800 --> 00:35:27,279 Speaker 13: And so when we're looking at this, you know, we 659 00:35:27,320 --> 00:35:29,000 Speaker 13: think about this in a lot of different ways, and 660 00:35:29,040 --> 00:35:31,799 Speaker 13: you know, every single gaming firm has to reconcile that 661 00:35:31,920 --> 00:35:35,080 Speaker 13: if you command a kid's time, you're taking responsibility and 662 00:35:35,280 --> 00:35:38,360 Speaker 13: sort of digital daycare. We've invested pretty heavily in the space. 663 00:35:38,400 --> 00:35:41,720 Speaker 13: One of our investments is kid, which is actually tacking 664 00:35:41,840 --> 00:35:44,840 Speaker 13: this issue straight on, which is trying to promote and 665 00:35:45,360 --> 00:35:48,920 Speaker 13: ensure that the companies are compliant with different regulations across 666 00:35:48,920 --> 00:35:50,680 Speaker 13: the globe. This is one of the huge challenges for 667 00:35:50,719 --> 00:35:53,040 Speaker 13: games companies. Again, I have a lot of empathy for them. 668 00:35:53,239 --> 00:35:54,880 Speaker 13: When you release a game, you release a game in 669 00:35:54,920 --> 00:35:57,920 Speaker 13: you know, over one hundred countries. Trying to stay compliant 670 00:35:57,920 --> 00:36:00,200 Speaker 13: and ensure that every kid is safe according to the law, 671 00:36:00,280 --> 00:36:02,280 Speaker 13: it's very difficult, and that's why we made this investment 672 00:36:02,320 --> 00:36:05,000 Speaker 13: early on, and they've continued to thrive. I think what 673 00:36:05,000 --> 00:36:08,520 Speaker 13: you're highlighting to Caroline with Roadblocks. Obviously, the Hindenberger report 674 00:36:08,560 --> 00:36:14,040 Speaker 13: that came out was pretty intense with their allegations. I'd 675 00:36:14,040 --> 00:36:16,520 Speaker 13: say towards a kind of two sides of the house. 676 00:36:16,560 --> 00:36:18,279 Speaker 13: One is child safety, the other one is kind of 677 00:36:18,280 --> 00:36:20,440 Speaker 13: their financial metrics. A'll hone it on the child safety 678 00:36:20,440 --> 00:36:21,240 Speaker 13: metrics for a second. 679 00:36:21,480 --> 00:36:21,640 Speaker 12: Free. 680 00:36:21,680 --> 00:36:26,680 Speaker 13: Yeah, they have to take this very seriously. It's something 681 00:36:26,760 --> 00:36:29,839 Speaker 13: they have to look into, but until proven otherwise, you know, 682 00:36:29,880 --> 00:36:32,080 Speaker 13: I think that Roadblocks has proven to be a best 683 00:36:32,120 --> 00:36:34,360 Speaker 13: in class digital property. I would like to think that 684 00:36:34,400 --> 00:36:36,319 Speaker 13: they can handle these issues head on. 685 00:36:36,960 --> 00:36:38,719 Speaker 5: Jason Chapman and Convoy thank you. 686 00:36:46,239 --> 00:36:49,319 Speaker 3: Amazon says it's teaming with financier Ken Griffin to make 687 00:36:49,360 --> 00:36:52,880 Speaker 3: a five hundred million dollar investment in small nuclear reactors. 688 00:36:53,320 --> 00:36:56,480 Speaker 3: Is what a ws CEO Matt Garmon said earlier today. 689 00:36:57,200 --> 00:37:00,440 Speaker 14: As the world continues to modernize, continues to digital, as 690 00:37:00,440 --> 00:37:03,040 Speaker 14: we think about the power of generative AI, all of 691 00:37:03,040 --> 00:37:05,920 Speaker 14: these capabilities are leading to the demands of more power. 692 00:37:06,000 --> 00:37:09,279 Speaker 14: So nuclear is an incredibly important part of reaching that 693 00:37:09,320 --> 00:37:10,759 Speaker 14: carbon zero goal for us. 694 00:37:11,920 --> 00:37:14,239 Speaker 4: We'll hear more from Matt Garman tomorrow, where he joins 695 00:37:14,280 --> 00:37:18,120 Speaker 4: us right here on Bloomberg Technology. Okay, Amazon's not the 696 00:37:18,120 --> 00:37:21,239 Speaker 4: only one. Google, Let's got a nuclear The company says 697 00:37:21,280 --> 00:37:24,520 Speaker 4: it's investing in the development of several small nuclear power 698 00:37:24,560 --> 00:37:27,680 Speaker 4: reactors across the United States. It hopes the deal your 699 00:37:27,760 --> 00:37:30,239 Speaker 4: Cairos power will help it meet the growing need for 700 00:37:30,280 --> 00:37:34,960 Speaker 4: electricity to fuel ai Here now, Michael Terrell, Senior director 701 00:37:35,160 --> 00:37:37,759 Speaker 4: of Energy and Climate at Google, and I guess that 702 00:37:37,840 --> 00:37:41,080 Speaker 4: the best starting point because it's well documented the terms 703 00:37:41,080 --> 00:37:44,640 Speaker 4: of the deal SMRs and what they are, is whether 704 00:37:44,680 --> 00:37:49,440 Speaker 4: it meaningfully changes the trajectory of meeting your power needs 705 00:37:49,960 --> 00:37:53,920 Speaker 4: but also your targets for climate as well well. 706 00:37:54,040 --> 00:37:57,160 Speaker 15: The world needs more carbon free energy and this agreement 707 00:37:57,200 --> 00:38:00,400 Speaker 15: that we've signed with Cairos is an important mouse and 708 00:38:00,440 --> 00:38:02,640 Speaker 15: what's been a fifteen year journey at Google to make 709 00:38:02,640 --> 00:38:06,120 Speaker 15: the transition to clean energy. It's our first nuclear energy deal, 710 00:38:06,560 --> 00:38:09,680 Speaker 15: and we feel that nuclear is a very important technology 711 00:38:09,840 --> 00:38:13,799 Speaker 15: for going carbon free for offices, data centers, communities where 712 00:38:13,840 --> 00:38:17,480 Speaker 15: we operate, because it's an always on carbon free energy resource. 713 00:38:17,920 --> 00:38:21,839 Speaker 4: I'm very interested in the technology, you know, I am, 714 00:38:22,040 --> 00:38:24,280 Speaker 4: but I'm also interested in the economics and the math. 715 00:38:24,800 --> 00:38:27,920 Speaker 4: Are you able to say, even if it's an estimate 716 00:38:28,320 --> 00:38:31,360 Speaker 4: kind of way, you see the dollar pamegual hour being 717 00:38:32,080 --> 00:38:36,080 Speaker 4: by twenty thirty, twenty thirty five when these come online. 718 00:38:36,320 --> 00:38:38,399 Speaker 15: Well, I can't talk about the specifics of this deal, 719 00:38:38,400 --> 00:38:40,560 Speaker 15: but what's interesting about it is we didn't do a 720 00:38:40,600 --> 00:38:43,400 Speaker 15: deal for just one reactor. It's actually for a series 721 00:38:43,400 --> 00:38:45,799 Speaker 15: of reactors, what we call an order book, and that 722 00:38:45,880 --> 00:38:48,719 Speaker 15: repeatability helps to drive down costs, It helps to take 723 00:38:48,760 --> 00:38:50,200 Speaker 15: the technology to scale faster. 724 00:38:51,040 --> 00:38:55,400 Speaker 3: Your focus is eliminating carbon emissions by twenty thirty. 725 00:38:55,760 --> 00:38:56,680 Speaker 5: Does this get you there? 726 00:38:56,719 --> 00:38:59,120 Speaker 2: Michael, that's right, Caroline. 727 00:38:59,200 --> 00:39:01,080 Speaker 15: We have a goal as a company to be twenty 728 00:39:01,080 --> 00:39:04,360 Speaker 15: four to seven carbon free and everywhere we operate in 729 00:39:04,440 --> 00:39:06,040 Speaker 15: every location, every hour. 730 00:39:05,800 --> 00:39:08,080 Speaker 2: Of the day, and it's a huge challenge. 731 00:39:08,320 --> 00:39:10,840 Speaker 15: We've actually been in this space for fifteen years in 732 00:39:10,920 --> 00:39:13,799 Speaker 15: terms of doing wind and solar large deals. We're one 733 00:39:13,840 --> 00:39:16,319 Speaker 15: of the largest corporate purchasers of wind and solar on 734 00:39:16,360 --> 00:39:19,279 Speaker 15: the planet. We signed over one hundred deals. But we 735 00:39:19,440 --> 00:39:21,840 Speaker 15: know that to get to carbon free twenty four hours 736 00:39:21,840 --> 00:39:24,600 Speaker 15: a day, we're going to need more technologies than just 737 00:39:24,680 --> 00:39:27,520 Speaker 15: wind and solar. The wind doesn't blow all the time, 738 00:39:27,600 --> 00:39:29,799 Speaker 15: the sun doesn't shine all the time. And what's great 739 00:39:29,840 --> 00:39:32,600 Speaker 15: about technologies like advanced nuclear is that they provide a 740 00:39:32,640 --> 00:39:35,520 Speaker 15: more always on resource. So it's a very big part 741 00:39:35,600 --> 00:39:40,040 Speaker 15: of our path to twenty four to seven carbon free energy, but. 742 00:39:40,040 --> 00:39:43,880 Speaker 3: It takes time and right now AI generator AI, the 743 00:39:43,920 --> 00:39:47,160 Speaker 3: training of it is in the here and now. Do 744 00:39:47,200 --> 00:39:51,320 Speaker 3: you have the energy infrastructure necessary to satisfy that demand? 745 00:39:52,960 --> 00:39:54,960 Speaker 15: Yes, we do, and it's why we're making big bets 746 00:39:55,000 --> 00:39:57,320 Speaker 15: like we are on nuclear, but we're also still betting 747 00:39:57,320 --> 00:39:59,920 Speaker 15: big on wind and solar and storage. We signed over 748 00:40:00,120 --> 00:40:03,080 Speaker 15: or four gigawatts of deals just last year, the most 749 00:40:03,080 --> 00:40:05,560 Speaker 15: we've ever signed in a single year, and now we're 750 00:40:05,560 --> 00:40:08,480 Speaker 15: inking new agreements with utilities to develop a portfolio of 751 00:40:08,520 --> 00:40:11,240 Speaker 15: technologies that can meet our twenty four to seven carbon 752 00:40:11,239 --> 00:40:14,440 Speaker 15: free needs. So we're both betting short term and long term. 753 00:40:14,680 --> 00:40:17,000 Speaker 4: I know you won't give me a dollar pamegal hour figure, 754 00:40:17,280 --> 00:40:20,839 Speaker 4: but you do expect the SMRs to be competitive and 755 00:40:20,880 --> 00:40:24,520 Speaker 4: of value versus solar and wind and the other technologies 756 00:40:24,560 --> 00:40:25,200 Speaker 4: you outlined. 757 00:40:25,400 --> 00:40:27,879 Speaker 15: Absolutely, we wouldn't do this if it didn't make sense 758 00:40:27,920 --> 00:40:28,600 Speaker 15: for our business. 759 00:40:29,000 --> 00:40:30,560 Speaker 2: And you know, one of the things that I think. 760 00:40:30,400 --> 00:40:32,280 Speaker 15: We ought to really think about in how we value 761 00:40:32,320 --> 00:40:36,560 Speaker 15: these approaches is they're always on nature exactive technology, and 762 00:40:36,600 --> 00:40:38,439 Speaker 15: it delivers a lot of value and you can put 763 00:40:38,440 --> 00:40:41,520 Speaker 15: it anywhere, and so that again is very good. 764 00:40:41,440 --> 00:40:42,000 Speaker 2: For the business. 765 00:40:41,960 --> 00:40:43,879 Speaker 4: So we can't just jump in really quick and ask 766 00:40:43,960 --> 00:40:48,400 Speaker 4: you your job is really interesting because you are responsible 767 00:40:48,440 --> 00:40:51,919 Speaker 4: for the energy needs. If you're not calculating the cost 768 00:40:52,000 --> 00:40:54,120 Speaker 4: per megal hour, do you have a clear figure in 769 00:40:54,160 --> 00:40:57,160 Speaker 4: your head about the energy need over a five year 770 00:40:57,280 --> 00:40:58,680 Speaker 4: or ten year time horizon. 771 00:40:58,920 --> 00:41:02,000 Speaker 15: Yeah, what we've been doing for like I said, fifteen years. 772 00:41:02,040 --> 00:41:03,840 Speaker 15: We have a good sense of how our demand is 773 00:41:03,880 --> 00:41:05,279 Speaker 15: going to grow. We have a good sense of the 774 00:41:05,320 --> 00:41:08,440 Speaker 15: portfolio of resources that we need, and we're making decisions 775 00:41:08,440 --> 00:41:09,520 Speaker 15: that make sense for the business. 776 00:41:09,520 --> 00:41:11,319 Speaker 2: It makes sense for our growth as a company. So 777 00:41:11,360 --> 00:41:12,520 Speaker 2: we feel we're on a good path. 778 00:41:13,239 --> 00:41:13,479 Speaker 4: Loop. 779 00:41:13,760 --> 00:41:16,040 Speaker 3: It's busy out there at Nuclear Never have we talked 780 00:41:16,080 --> 00:41:16,680 Speaker 3: about it more. 781 00:41:16,719 --> 00:41:20,000 Speaker 5: And the Amazon deal for example, these are companies that 782 00:41:20,040 --> 00:41:23,480 Speaker 5: we've not really heard of, Cairo's Power, the Private x Energy. 783 00:41:23,719 --> 00:41:25,880 Speaker 5: Are there enough startups. 784 00:41:25,440 --> 00:41:28,640 Speaker 3: Enough companies building what you need right now to partner with? 785 00:41:30,080 --> 00:41:30,279 Speaker 15: You know? 786 00:41:30,320 --> 00:41:32,560 Speaker 2: It reminds me of the early days of wind and solar. 787 00:41:32,640 --> 00:41:35,880 Speaker 15: We were one of the pioneers and signing corporate ppa 788 00:41:35,960 --> 00:41:38,440 Speaker 15: agreements to buy these technologies, and there were not a 789 00:41:38,440 --> 00:41:39,239 Speaker 15: lot of players in the. 790 00:41:39,239 --> 00:41:41,120 Speaker 2: Early days of those as well. 791 00:41:41,120 --> 00:41:43,880 Speaker 15: But now with this new set of technologies that we're 792 00:41:43,920 --> 00:41:45,279 Speaker 15: going to need to get to twenty four to seven 793 00:41:45,320 --> 00:41:48,000 Speaker 15: carbon free energy, it's not just nuclear, it's enhanced you 794 00:41:48,000 --> 00:41:50,919 Speaker 15: a thermal, it's long duration storage, and so it's great 795 00:41:50,920 --> 00:41:52,080 Speaker 15: to see others getting in the game. 796 00:41:52,080 --> 00:41:52,800 Speaker 2: The more the merrier. 797 00:41:52,840 --> 00:41:55,840 Speaker 15: I'd like to see one hundred more companies doing nuclear deals. 798 00:41:55,840 --> 00:41:57,160 Speaker 2: From what we've seen this week. 799 00:41:57,000 --> 00:41:59,000 Speaker 4: We're running out of time, so you will look at 800 00:41:59,040 --> 00:42:01,520 Speaker 4: GA Thermal and can you give us a proportion of 801 00:42:01,560 --> 00:42:05,040 Speaker 4: what you see the contribution of nuclear, geofermal and solar. 802 00:42:05,280 --> 00:42:05,440 Speaker 2: Yeah. 803 00:42:05,560 --> 00:42:08,280 Speaker 15: Actually, Geothermore was one of the first advanced energy deals 804 00:42:08,280 --> 00:42:10,200 Speaker 15: that we did. We signed a deal in twenty twenty 805 00:42:10,200 --> 00:42:12,840 Speaker 15: one to do a project in Nevada. It's now skilled 806 00:42:12,840 --> 00:42:14,759 Speaker 15: to a deal that's twenty five times bigger than that 807 00:42:14,800 --> 00:42:17,920 Speaker 15: original project. So we've got experience in dealing with these 808 00:42:18,000 --> 00:42:21,560 Speaker 15: new technologies and we're super excited about the potential for nuclear. 809 00:42:22,200 --> 00:42:25,120 Speaker 4: Michael Terrell, Senior director of Energy and Climate at Google, 810 00:42:25,160 --> 00:42:27,840 Speaker 4: really appreciate you joining us here. On Bloomberg Technology. 811 00:42:27,920 --> 00:42:31,759 Speaker 3: Carroc, what a wide rating ranging condition on Bloomberg Technology. 812 00:42:31,800 --> 00:42:34,920 Speaker 3: We've done it all, from space to power to ASML. 813 00:42:35,040 --> 00:42:37,520 Speaker 4: Still need to track that, yeah, and keep your eye 814 00:42:37,560 --> 00:42:39,680 Speaker 4: on the chip sector throughout the day because twenty four 815 00:42:39,680 --> 00:42:41,880 Speaker 4: hours it's been a bit of a wild ride. Recap 816 00:42:41,920 --> 00:42:43,719 Speaker 4: on the podcast. You know where to find it on 817 00:42:43,760 --> 00:42:47,680 Speaker 4: all the Bloomberg platforms as well as online on Apple, Spotify, 818 00:42:47,840 --> 00:42:50,279 Speaker 4: and iHeart. Thank you New York team and everyone here 819 00:42:50,280 --> 00:42:52,480 Speaker 4: in SF. This is Bloomberg Technology.