WEBVTT - ASML Outlook Weighs On Global Tech 0:00:01.480 --> 0:00:05.120 From Marhard where Innovation of Money and Power colle in 0:00:05.240 --> 0:00:06.760 Silicon Valley, NBN. 0:00:07.080 --> 0:00:10.600 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:10.640 --> 0:00:27.320 Ludlow live from New York and San Francisco. This is 0:00:27.320 --> 0:00:31.000 Bloomberg Technology coming up ASML shares sync further as its 0:00:31.000 --> 0:00:34.440 CEO addresses the chip equipment maker's shock booking slowdown. 0:00:35.280 --> 0:00:37.879 We speak to Donald Trump about the future of Google. 0:00:38.000 --> 0:00:41.800 Despite criticism, the former president says it's important to keep 0:00:41.800 --> 0:00:42.839 the company intact. 0:00:43.080 --> 0:00:46.440 Plus next generation nuclear More on Google and Amazon's. 0:00:46.000 --> 0:00:47.640 Latest investments in the carbon. 0:00:47.400 --> 0:00:51.680 Free tech crucial to their AI energy needs. But first 0:00:51.800 --> 0:00:53.080 we've got to go to the chip sector. 0:00:53.200 --> 0:00:53.240 Ed. 0:00:54.200 --> 0:00:59.600 Yeah, look downward pressure on semiconductor stocks and chip equipment makers. 0:00:59.680 --> 0:01:02.440 Glow blee has been a story for the past twenty 0:01:02.480 --> 0:01:06.480 four hours in Asia into the European session, and it 0:01:06.600 --> 0:01:09.800 now has continued in the United States. The Philadelphia semi 0:01:09.840 --> 0:01:12.840 Conductor Index is actually higher four tens to one percent, 0:01:13.240 --> 0:01:17.160 and actually it's those two names ASML. It's US traded shares, 0:01:17.280 --> 0:01:20.679 but also note that it's European trading shares are still 0:01:20.920 --> 0:01:23.920 under pressure, down five percent, continuing from the savage sell 0:01:23.959 --> 0:01:28.880 off of Monday of Tuesday. Sorry, Intel is interesting, right. 0:01:28.959 --> 0:01:31.880 Think about the story here ASML is a chip equipment 0:01:31.959 --> 0:01:35.920 maker who buys chip making equipment. Well, Intel has that 0:01:36.000 --> 0:01:38.480 foundry business, So on the socks, it makes a lot 0:01:38.480 --> 0:01:41.520 of sense that in the context of what we're worrying about, 0:01:41.680 --> 0:01:44.760 Intel might be lower. We need to understand what's happening here, 0:01:44.880 --> 0:01:48.560 So let's get more with Bloomberg's Chancock. Who's out for 0:01:48.640 --> 0:01:51.960 us in Amsterdam. Let's start with something and clear something up. 0:01:52.440 --> 0:01:57.040 They put their earnings out early. That confused everyone. The 0:01:57.120 --> 0:02:00.600 CEO had to address it on the investicle. What did 0:02:00.600 --> 0:02:01.000 he say? 0:02:02.080 --> 0:02:05.280 Yeah, so the results were scheduled for today, but the 0:02:05.360 --> 0:02:11.000 company published them early yes yesterday evening by mistake. They 0:02:11.000 --> 0:02:13.880 didn't say much, but they kind of blamed it on 0:02:14.160 --> 0:02:17.760 a technical error in a statement yesterday and today, the CEO, 0:02:17.880 --> 0:02:23.120 Christophe Fouquet, apologized in an analyst call about the results. 0:02:23.520 --> 0:02:28.400 He said, this was very unfortunate. They booked less than 0:02:28.480 --> 0:02:32.200 half of the orders that analysts estimated in the third quarter, 0:02:33.000 --> 0:02:35.560 and they also cut guidance for next year. So the 0:02:35.600 --> 0:02:40.760 results were an unpleasant surprise for analysts, and the market 0:02:40.800 --> 0:02:44.519 reaction was amplified by the company releasing the results a 0:02:44.600 --> 0:02:46.240 day earlier than scheduled. 0:02:46.480 --> 0:02:47.600 Look, they're still thinking. 0:02:47.760 --> 0:02:50.040 Even though the CEO has now spoken out, how did 0:02:50.040 --> 0:02:54.080 he explain the cut to guidance? The bookings dramatically under 0:02:54.160 --> 0:02:55.680 where analysts thought they would be. 0:02:56.680 --> 0:03:00.320 So yeah, any weakness in SML orders, as had mentioned earlier, 0:03:00.480 --> 0:03:04.320 often kind of signals struggles for the wider chip sector. 0:03:05.320 --> 0:03:08.120 They're the market leader for lithography machines in the world, 0:03:08.560 --> 0:03:10.240 so we can call it a bit of a chip 0:03:10.280 --> 0:03:14.679 bell weather. So SML is citing a few delays in 0:03:15.680 --> 0:03:18.960 chip plant constructions around the world as an explanation of 0:03:19.000 --> 0:03:20.360 why the results were so bad. 0:03:20.960 --> 0:03:21.120 Uh. 0:03:21.160 --> 0:03:24.560 They also see weakening growth in China for their older 0:03:24.600 --> 0:03:28.639 machines due to a combination of softening demand and the 0:03:28.639 --> 0:03:34.040 possibility of future export controls from Washington. So also keep 0:03:34.040 --> 0:03:36.800 in mind that Intel is you know, their biggest customer 0:03:36.840 --> 0:03:40.080 in the US, and it's cutting the expenses in a restructuring, 0:03:40.360 --> 0:03:46.040 uh restructuring push. So that's not helping the sentiment either. 0:03:46.720 --> 0:03:50.600 And then you have you know, delayed factories of Intel 0:03:50.640 --> 0:03:54.040 in Germany and Poland. While membership makers such as Samsung 0:03:54.160 --> 0:03:56.760 and s K Heinis are also being careful with their spending. 0:03:57.360 --> 0:03:59.640 Uh So, all of these spending cuts are affecting demand 0:03:59.680 --> 0:04:01.800 for soml's chip making machines. 0:04:02.640 --> 0:04:04.960 Okay, if you're just joining us here on Bloomberg Technology, 0:04:05.000 --> 0:04:08.280 the world's most important maker of the machines that make 0:04:08.440 --> 0:04:12.160 chips had really ugly earnings and an ugly guidance. And 0:04:12.200 --> 0:04:14.960 what Child was just explaining is kind of the backstory 0:04:15.480 --> 0:04:18.440 of earnings that came out early and were a surprise. 0:04:18.440 --> 0:04:21.160 You're looking at the two day chart. Sixteen percent decline 0:04:21.160 --> 0:04:25.040 in Amsterdam yesterday, five percent decline today, and that anxiety 0:04:25.080 --> 0:04:28.760 Caroline was around the world. Asian session, European session, and 0:04:28.800 --> 0:04:31.480 we've chilled out a bit in the US session. What 0:04:31.520 --> 0:04:35.240 we're worried about chan is the investment cycle. What did 0:04:35.279 --> 0:04:38.360 Airsmel tell us about their own investment plans? 0:04:39.920 --> 0:04:43.920 So, yeah, the big miss is obviously a signal that 0:04:44.360 --> 0:04:47.640 the chip industry's weakness is set to continue. They said 0:04:48.080 --> 0:04:52.760 well into twenty twenty five, and they did say that 0:04:52.960 --> 0:04:56.920 ASML will slow its short term investment plans to match 0:04:58.240 --> 0:05:03.080 the market in today's call. Yeah, so basically we can 0:05:03.200 --> 0:05:05.440 we can also say that really it's important to mention 0:05:05.480 --> 0:05:08.520 that the chip industry is experiencing some uneven times, right, 0:05:08.640 --> 0:05:12.760 like in areas such as artificial intelligence accelerators, companies like 0:05:12.880 --> 0:05:16.159 Nvidia can't keep up with the demand. But in other sectors, 0:05:16.240 --> 0:05:21.400 including automotive and industrial, it's a prolonged slump with customers 0:05:21.440 --> 0:05:24.120 cutting back orders because they have too much inventory. So 0:05:24.360 --> 0:05:27.200 sm I'll also mention the weakness in these industries. 0:05:27.520 --> 0:05:28.520 Name the CEO. 0:05:28.680 --> 0:05:31.599 I think the quote of the entire call was today, 0:05:31.680 --> 0:05:35.640 without AI, the market would be very sad. Chant touch, 0:05:35.760 --> 0:05:38.680 We thank you so much. Let's stay with semiconductors. Qualcom 0:05:38.880 --> 0:05:41.920 said to wait until after the US elections to decide 0:05:41.920 --> 0:05:43.960 whether it will put in an offer for Intel. 0:05:44.000 --> 0:05:45.680 That's according to sources. For more. 0:05:45.960 --> 0:05:48.239 Most Michelle Davis joins us for more what your source 0:05:48.279 --> 0:05:48.640 is saying. 0:05:49.240 --> 0:05:51.880 So, what we're hearing from sources is that this is 0:05:52.040 --> 0:05:54.760 going to be a very complicated deal. If it does happen, 0:05:55.120 --> 0:05:58.000 the bar is very high to get something over the line, 0:05:58.120 --> 0:06:01.640 and there are huge implication on the political front. You know, 0:06:01.839 --> 0:06:04.440 this is not just your average MNA deal where you're 0:06:04.440 --> 0:06:08.240 just thinking about anti trust implications. There are also geopolitical ones, 0:06:08.279 --> 0:06:11.479 and so part of why Intel or Qualcom would want 0:06:11.480 --> 0:06:14.680 to wait before bringing its formal offers to have more 0:06:14.720 --> 0:06:17.680 clarity about what the anti landscape will look like, but 0:06:17.760 --> 0:06:20.599 also what the geopolitical one will look like. US China 0:06:20.680 --> 0:06:24.320 relations in particular are very important in the semiconductor industry 0:06:24.320 --> 0:06:25.680 and to a deal like this. 0:06:26.960 --> 0:06:30.480 Michelle, the other part of the reporting is that sources 0:06:30.480 --> 0:06:34.039 told us clowd Com sounded out regulators in China. What 0:06:34.120 --> 0:06:34.680 did you learn? 0:06:35.440 --> 0:06:37.599 So what we're hearing is that this is something that 0:06:37.880 --> 0:06:40.520 would have been done very informally at this point. You know, 0:06:40.680 --> 0:06:43.880 China has not weighed in on what it thinks of 0:06:43.920 --> 0:06:47.440 a deal, but if Qualcom does come forward with it 0:06:47.440 --> 0:06:50.880 its formal offer, it will all hinge on those US 0:06:51.000 --> 0:06:54.440 China relations. The US has made a vested, you know, 0:06:54.640 --> 0:06:57.799 effort to make sure that it is a national player 0:06:58.800 --> 0:07:01.680 in chip making and it is not as reliant on China, 0:07:01.760 --> 0:07:04.640 and China will have say over a deal like this, 0:07:04.800 --> 0:07:08.920 and so if those relations are problematic, then then they 0:07:08.920 --> 0:07:10.160 could try to get in the way of it. 0:07:10.960 --> 0:07:13.000 So it's a a big consideration. 0:07:14.080 --> 0:07:18.040 Both Qualcom and Intel declined to comment on our reporting. 0:07:18.040 --> 0:07:20.600 Bloomberg's Michelle Davis in New York, thank you very much. 0:07:20.760 --> 0:07:23.960 Investor focus on chips will continue after the Bell because 0:07:24.000 --> 0:07:27.240 TSMC is going to report its earnings. Joanne Feenie, advises 0:07:27.320 --> 0:07:32.960 Capital management partner and portfolio manager, back on Bloomberg Technology TSMC. Wow. 0:07:33.080 --> 0:07:37.320 The timing, the accidental timing perhaps of ASML, but it 0:07:37.400 --> 0:07:41.480 is important to think about how quickly TSMC comes because 0:07:41.480 --> 0:07:45.040 it's the continuation of the story, right the investment cycle 0:07:45.200 --> 0:07:49.720 into AI frankly, and whether we continue to see investment 0:07:49.760 --> 0:07:53.160 in chip equipment, making equipment and the chips themselves. 0:07:53.240 --> 0:07:57.840 Joanne, Yeah, And you know clearly TSMC has already released 0:07:57.880 --> 0:08:00.440 monthly numbers, so we have a good indication that their 0:08:00.560 --> 0:08:03.239 results are going to be solid and led by AI. 0:08:04.320 --> 0:08:07.920 And you know, the ASML news is more about I 0:08:07.920 --> 0:08:11.960 think China, particularly the pull forward in China for some 0:08:12.000 --> 0:08:17.000 of that equipment ahead of increasingly severe regulations against ASML 0:08:17.080 --> 0:08:21.360 shipping there. So forty seven percent of ASML's business comes 0:08:21.360 --> 0:08:23.920 out of China and that's going to have a big factor. 0:08:24.280 --> 0:08:27.160 You know, the fact that ASML did acknowledge that AI 0:08:27.320 --> 0:08:30.200 continues to be strong but elsewhere things are weaker. You know, 0:08:30.200 --> 0:08:32.920 it could reflect a number of things, starting with Intel 0:08:33.240 --> 0:08:36.520 and its plans to delay some of its and cancel 0:08:36.640 --> 0:08:38.439 some of its overseas projects. 0:08:38.440 --> 0:08:40.040 For example, let's just. 0:08:39.960 --> 0:08:43.800 Dig into how sad, as the CEO of ASML called it, 0:08:43.880 --> 0:08:46.080 the rest of the market is without AI. 0:08:47.960 --> 0:08:50.480 Yeah, I mean, we've heard from plenty of the analogship 0:08:50.520 --> 0:08:56.160 makers like Texas Instruments, for example, that autos is weakening 0:08:56.320 --> 0:08:58.880 and they don't know. They said, look, we don't know 0:08:58.920 --> 0:09:02.679 how soft this is going to become. Hasn't gotten severe yet, 0:09:02.679 --> 0:09:04.640 at least the last time we heard from them. But 0:09:04.760 --> 0:09:07.880 on the other hand, we also have heard that inventories 0:09:07.920 --> 0:09:11.280 have cleared in other end markets for semiconductors like industrials, 0:09:11.520 --> 0:09:13.440 and that we're starting to see a pickup there. So 0:09:13.480 --> 0:09:19.120 it's really hard to read ASML's comments about orders into 0:09:19.240 --> 0:09:22.680 the broader sort of away from the leading edge chip 0:09:23.240 --> 0:09:27.680 businesses like analog or micro controllers, and that really is 0:09:27.720 --> 0:09:31.240 assigned those companies. Analog and micro controls really tell us 0:09:31.280 --> 0:09:33.160 more about the broader economy. 0:09:32.840 --> 0:09:34.560 And we know the US economy is doing well. 0:09:34.559 --> 0:09:37.600 We know we're seeing recovery and industrial so it's sort 0:09:37.640 --> 0:09:40.840 of hard to tell what ASML means. You know, how 0:09:40.920 --> 0:09:43.040 much of it is China, how much of it is 0:09:43.080 --> 0:09:46.200 Intel pushing out its plans, So it's actually not as 0:09:46.240 --> 0:09:47.000 straightforward to read. 0:09:47.000 --> 0:09:48.160 I think, as some people think. 0:09:48.040 --> 0:09:51.080 It is, let's give the nuance therefore, because you're so 0:09:51.120 --> 0:09:52.760 good at doing that, Joanne, Because this comes in the 0:09:52.800 --> 0:09:55.000 context of the breaking news that came on Monday that 0:09:55.400 --> 0:09:59.400 maybe we will see yet more and more well limitations 0:09:59.600 --> 0:10:01.880 on X sports from the US and around the world 0:10:02.080 --> 0:10:05.319 to China in video chips for example, why was in 0:10:05.440 --> 0:10:08.400 Vidio so sold off yesterday if it's not around AI. 0:10:08.679 --> 0:10:11.400 How much of an importance is China US to some 0:10:11.440 --> 0:10:12.359 of these valuations. 0:10:13.520 --> 0:10:16.600 Yeah, you know, in Vidia shouldn't really have sold off 0:10:16.600 --> 0:10:20.880 on the ASML news yesterday, particularly because ASML said, this 0:10:20.920 --> 0:10:22.200 is nothing to do with Ali, right. 0:10:22.640 --> 0:10:24.160 So I think what you're seeing is. 0:10:24.120 --> 0:10:27.800 You know, in Vidia is a big component of many ETFs, 0:10:28.200 --> 0:10:30.520 and so you know, when you sell out of those ETFs, 0:10:30.559 --> 0:10:33.000 the money flows out, everything in them gets sold. So 0:10:33.040 --> 0:10:35.600 I think that was a big driver for Invidia. And 0:10:35.600 --> 0:10:38.560 then also, you know, you could see some folks saying, 0:10:38.559 --> 0:10:40.760 you know, let me get a little bit less exposure 0:10:40.800 --> 0:10:43.960 to the semiconductor space overall, given how much it's rallied. 0:10:44.320 --> 0:10:47.400 You know, that could just have been a decision made 0:10:47.480 --> 0:10:50.760 on diversification lines. But I think it's probably the ETFs 0:10:50.760 --> 0:10:51.640 that drove most of that. 0:10:52.720 --> 0:10:55.280 Juanne remind us which of these names you like and 0:10:55.400 --> 0:10:58.680 hold which you don't and why. Yeah. 0:10:58.720 --> 0:11:01.400 So we're not involved in a SML, nor do we 0:11:01.559 --> 0:11:05.679 like Intel here because of its significant challenges. 0:11:06.640 --> 0:11:07.960 We do like Nvidia. 0:11:08.080 --> 0:11:10.080 We continue to like a number of players in the 0:11:10.080 --> 0:11:15.560 AI space, including Broadcom. So you know, overall, I think 0:11:15.880 --> 0:11:19.079 that the economically exposed companies like Texas Instruments, we own 0:11:19.120 --> 0:11:19.880 that for clients. 0:11:20.160 --> 0:11:21.040 I own it myself. 0:11:21.960 --> 0:11:23.960 I think is a good place to be given how 0:11:24.000 --> 0:11:25.800 strong the US economy is and how much of a 0:11:25.840 --> 0:11:30.320 recovery are seeing in industrials. Intel, you know, just faces 0:11:30.440 --> 0:11:33.160 huge challenges to catch up in manufacturing and it just 0:11:33.240 --> 0:11:35.800 doesn't have the expertise to do foundry work. It's a 0:11:35.800 --> 0:11:38.520 big challenge for them to build a library that it 0:11:38.559 --> 0:11:41.400 can then build other types of chips for. So, you know, 0:11:41.600 --> 0:11:44.959 the Qualcomm deal, if it goes through, we suspect will 0:11:45.000 --> 0:11:48.679 be more oriented towards Qualcom trying to acquire the design side, 0:11:48.920 --> 0:11:51.840 and that could give Intel a massive cash infusion with 0:11:51.880 --> 0:11:54.320 which to save the manufacturing side and really make the 0:11:54.360 --> 0:11:56.600 investments that are necessary. But we think that's such a 0:11:56.600 --> 0:11:59.600 long way off and so uncertain that we don't think 0:11:59.679 --> 0:12:01.440 Intel is a place to be right now. 0:12:01.880 --> 0:12:05.240 Joanne Feeney, so good to have you on Advisors Capital Management. 0:12:05.280 --> 0:12:05.840 We thank you. 0:12:06.320 --> 0:12:09.040 And coming up, what former President Trump had to say 0:12:09.040 --> 0:12:11.720 about tech regulation in a conversation with the Bloomberg's editor 0:12:11.760 --> 0:12:15.240 in chief, John mcklethwaite ed, you're watching a stock related 0:12:15.240 --> 0:12:15.440 to this. 0:12:16.360 --> 0:12:20.040 Yes, I am watching Trump Media and Technology DJT up 0:12:20.080 --> 0:12:22.520 almost ten percent. There's a lot of writing about this 0:12:22.600 --> 0:12:25.080 on the termin or this morning, Caro. Some people say 0:12:25.080 --> 0:12:27.680 the Trump trade is the dollar and rates right tied 0:12:27.720 --> 0:12:31.439 to inflation. Others just say it's DJT. I would point 0:12:31.440 --> 0:12:35.240 out it was down significantly yesterday, it's up significantly today. 0:12:35.440 --> 0:12:39.120 There's volatility, but the timing's curious. Based on the fascinating 0:12:39.160 --> 0:12:41.679 interview you're about to hear, Please don't go anywhere. It 0:12:41.800 --> 0:12:44.480 is worth listening to. This is Bloomberg Technology. 0:12:52.720 --> 0:12:55.599 Former President Donald Trump sat down with Bloomberg editor in 0:12:55.679 --> 0:12:59.079 chief John mclelthwaite on Tuesday for a wide ranging interview 0:12:59.200 --> 0:13:01.760 focused on the acon included his support of tariffs, his 0:13:01.880 --> 0:13:04.840 views on the Federal Reserve, and the future of tech regulation. 0:13:05.200 --> 0:13:07.040 Here's what he had to say about the potential breakup 0:13:07.080 --> 0:13:07.600 of Google. 0:13:08.360 --> 0:13:10.800 Google's got a lot of power. They're very bad to me, 0:13:11.120 --> 0:13:13.840 very very bad to me. I mean I can speak 0:13:13.880 --> 0:13:17.200 from that standpoint. They only have bad stories. In other words, 0:13:17.200 --> 0:13:19.640 if I have twenty good stories and twenty bad stories 0:13:20.440 --> 0:13:23.720 and everyone's entitled to that, you'll only see the twenty 0:13:23.720 --> 0:13:27.520 bad stories. And I called the head of Google the 0:13:27.559 --> 0:13:29.960 other day and I said, I'm getting a lot of 0:13:29.960 --> 0:13:32.480 good stories lately, but you don't find them in Google. 0:13:32.520 --> 0:13:33.760 I think it's a whole rig deal. 0:13:33.800 --> 0:13:36.400 I think Google's rigged, just like our government is rigged 0:13:36.440 --> 0:13:36.719 all over. 0:13:36.720 --> 0:13:38.000 You would break them up. 0:13:38.000 --> 0:13:39.320 In other words, I. 0:13:39.400 --> 0:13:42.480 Do something you have to have. Look, I give them 0:13:42.520 --> 0:13:45.200 a lot of credit. They've become such a power, such 0:13:45.240 --> 0:13:48.040 a power, and you've got to give them credit for that. 0:13:48.320 --> 0:13:51.960 How they became a power is, you know, really the discussion. 0:13:53.120 --> 0:13:57.800 At the same time, it's a very dangerous thing because 0:13:58.280 --> 0:14:00.760 we want to have great companies. Don't want China to 0:14:00.800 --> 0:14:03.600 have these companies. Right now, China is a friend of 0:14:03.679 --> 0:14:06.920 Google right now. You know, China is a very powerful, 0:14:07.160 --> 0:14:09.080 very smart group of people. 0:14:09.160 --> 0:14:10.200 I will tell you that from. 0:14:10.200 --> 0:14:12.880 Very personal example of a Chinese tech company at the 0:14:12.880 --> 0:14:17.120 moment TikTok. You initially wanted to ban TikTok. Now you 0:14:17.280 --> 0:14:19.640 like it. Apparently for some reason to do with Facebook. 0:14:20.280 --> 0:14:22.880 There was a decision coming up. If you became president, 0:14:23.480 --> 0:14:25.920 it's Chinese parent would have to sell it. I think 0:14:25.920 --> 0:14:27.200 it's by January the nineteenth. 0:14:28.120 --> 0:14:29.400 Would you force them to do that? 0:14:29.800 --> 0:14:33.960 So I originally had it all done, and then I 0:14:34.000 --> 0:14:36.200 said to Congress, your decision. 0:14:36.560 --> 0:14:37.280 I said, I'm not. 0:14:37.200 --> 0:14:42.720 Going to pull any strings nothing. Your decision. You make it. 0:14:42.800 --> 0:14:45.040 But I had it all done and I said, you 0:14:45.120 --> 0:14:48.200 make it, and they decided not to make it. I 0:14:48.240 --> 0:14:50.200 didn't care if they made it or not, because to me, 0:14:50.240 --> 0:14:52.200 it was a flip of acquiring. You know, you have 0:14:52.280 --> 0:14:54.800 some real First Amendment problems. You have a lot of problems. 0:14:54.960 --> 0:14:59.040 You just talked about Chinese technology, the need to defend 0:14:59.080 --> 0:15:02.200 against it. Yeah, TikTok and the threat people see too 0:15:02.240 --> 0:15:05.640 many kind of American children and things like that. Why 0:15:05.680 --> 0:15:08.480 do you no longer see security threats? 0:15:08.760 --> 0:15:11.400 I think it is a threat. Frankly, I think everything's 0:15:11.440 --> 0:15:15.240 a threat. There's nothing that's not a threat. But sometimes 0:15:15.280 --> 0:15:17.200 you have to fight through these threats. You know, you 0:15:17.240 --> 0:15:20.760 can't just like Google. I'm not a fan of Google. 0:15:21.000 --> 0:15:24.160 They treat me badly. But if you are you going 0:15:24.200 --> 0:15:27.320 to destroy the company by doing that? If you do that, 0:15:27.520 --> 0:15:30.360 are you going to destroy the company. What you can 0:15:30.440 --> 0:15:32.560 do without breaking it up is make sure that it's 0:15:32.600 --> 0:15:33.240 more fair. 0:15:35.440 --> 0:15:38.200 That was former President Donald Trump with Bloomberg editor in 0:15:38.280 --> 0:15:42.040 chief John Mickelfwaite. Let's review the interview with Bloomberg's Mike Shephard, 0:15:42.280 --> 0:15:45.520 who leads our coverage of the intersection between tech and politics, 0:15:45.560 --> 0:15:49.360 and he stopped short of suggesting a breakup of Google. 0:15:49.840 --> 0:15:52.960 He was firmer on TikTok. What else did you learn 0:15:53.000 --> 0:15:55.960 about his potential policy platform going forward in tech? 0:15:57.880 --> 0:16:00.200 I think one of the biggest takeaways from that, as 0:16:00.280 --> 0:16:03.120 he is trying to maintain some flexibility, he tried to 0:16:03.200 --> 0:16:07.360 leave doors open on both coming down on Google, but 0:16:07.600 --> 0:16:11.720 also maybe finding some way to play both ends against 0:16:11.720 --> 0:16:14.000 the middle so that he doesn't have to go to 0:16:14.600 --> 0:16:17.920 really unraveling what he was hailing during the conversation with 0:16:18.040 --> 0:16:22.440 John as a great power. He really pointed to Google's 0:16:22.480 --> 0:16:24.840 market cloud as something in a way to also be 0:16:25.080 --> 0:16:28.720 envied and admired and something that gives us a geopolitical 0:16:28.760 --> 0:16:33.520 advantage with China. We do have one signal from his 0:16:33.680 --> 0:16:37.000 camp that there could be a continuation of this vigorous 0:16:37.000 --> 0:16:40.000 anti trust enforcement, and that is his running mate jd. 0:16:40.200 --> 0:16:40.440 Vance. 0:16:40.480 --> 0:16:45.200 He has previously expressed a favorable view of how Lena 0:16:45.280 --> 0:16:49.760 con in particular at the FTC has pursued anti competitive behavior, 0:16:49.920 --> 0:16:52.520 especially by big tech companies, So that could give us 0:16:52.520 --> 0:16:54.200 some sort of a clearer signal there. 0:16:54.800 --> 0:16:57.040 Many are wondering about the signal around M and A 0:16:57.040 --> 0:16:59.960 as well. It feels as though with an anti competitive 0:17:00.160 --> 0:17:01.640 perspective that might be tough. 0:17:03.680 --> 0:17:06.480 I think you're right there. And also on TikTok. One 0:17:06.520 --> 0:17:09.360 of those stipulations, of course under the new law is 0:17:09.400 --> 0:17:12.240 that the app be sold, and so the question is 0:17:12.640 --> 0:17:16.639 would this really valuable asset enter the market someplace. And 0:17:16.680 --> 0:17:20.040 again here in the interview, Trump is really playing both 0:17:20.119 --> 0:17:22.520 ends against the middle. He did not say for sure 0:17:22.600 --> 0:17:25.480 that he would enforce the new law that President Joe 0:17:25.480 --> 0:17:29.280 Biden signed at the end of at the end of 0:17:29.320 --> 0:17:32.520 April as part of a larger foreign a bill. And likewise, 0:17:32.600 --> 0:17:36.040 in your conversation with our colleague Michelle Davis, we saw 0:17:36.320 --> 0:17:40.639 signs in other companies Qualcomm in particular that they have 0:17:40.760 --> 0:17:44.280 reservations about making any kind of a move before they 0:17:44.320 --> 0:17:47.080 know how this election is shaping up, because the environment 0:17:47.160 --> 0:17:50.480 could actually become very different when it can't comes to regulation. 0:17:50.920 --> 0:17:53.080 Mike Sheppard, we appreciate it. Thank you. 0:18:01.440 --> 0:18:04.320 Day two of Bloomberg City Lab Summit in Mexico City, 0:18:04.400 --> 0:18:08.320 over five hundred mayors and policymakers, including those from Kiev, Ukraine. 0:18:08.480 --> 0:18:12.720 Four million is being provided by Bloomberg Philanthropies for digital 0:18:12.760 --> 0:18:17.320 projects in Ukraine. Bloomberg Philanthropies is the philanthropic organization of 0:18:17.400 --> 0:18:20.800 Michael Bloomberg. Kiev is a city using AI for everything 0:18:20.800 --> 0:18:25.040 from urban planning, predictive AI for transport, to infrastructure maintenance 0:18:25.240 --> 0:18:28.520 and even security. City of Kiev, Ukraine, Advisor to the 0:18:28.560 --> 0:18:32.680 Mayor and head of Digitalization, Oleg Polovinku joins us now, 0:18:33.040 --> 0:18:35.159 good morning to you. What is it you hope to 0:18:35.200 --> 0:18:39.600 achieve your city? With all of your peers there in attendance. 0:18:42.640 --> 0:18:47.400 Hello everyone, thank you for hosting me. Definitely Ukraine now 0:18:47.560 --> 0:18:49.200 and the city of the Key of in the most 0:18:49.280 --> 0:18:54.679 challengeable time, and we're doing our best and using digitalization 0:18:55.000 --> 0:19:01.160 to help our residents achieve services from the city and 0:19:02.600 --> 0:19:06.320 use it inconvenient and comfortable way. 0:19:07.200 --> 0:19:11.560 Just how difficult is it to implement technological innovation at 0:19:11.560 --> 0:19:13.560 this moment in a moment of war. 0:19:17.800 --> 0:19:22.680 First of all, we are having our super app which 0:19:23.560 --> 0:19:28.480 downloaded more than three point nine million users in case 0:19:28.800 --> 0:19:32.560 that we have three point six residents. Of course, it's 0:19:32.600 --> 0:19:37.080 not all residents downloaded this super app, but the refugees 0:19:37.240 --> 0:19:40.679 from other regions who came in the key already downloaded. 0:19:41.359 --> 0:19:45.360 The main goal of this application is provide critical notification 0:19:45.520 --> 0:19:51.000 to our users to help them find bomb shelters, hitting point, 0:19:51.480 --> 0:19:55.520 any help and services what they need in the city 0:19:55.560 --> 0:19:58.840 when they arrive there, when they live there. Because we're 0:19:58.880 --> 0:20:04.520 facing the out electricity outrange and in this moment, citizens 0:20:04.560 --> 0:20:07.600 have to know how to survive in the city, so 0:20:07.640 --> 0:20:09.359 they use our application for that. 0:20:10.640 --> 0:20:13.160 I can imagine the mental health support that you're able 0:20:13.200 --> 0:20:15.520 to give, the information that you're able to give. 0:20:15.840 --> 0:20:19.120 What about future investment? Where are you allocating? Is it 0:20:19.200 --> 0:20:21.520 all about the help of generative AI. 0:20:21.480 --> 0:20:25.080 Within these super apps to be some help within mental 0:20:25.080 --> 0:20:29.320 health discussions? Is it about more logistical information? 0:20:29.560 --> 0:20:30.920 What are you talking about. 0:20:33.640 --> 0:20:34.000 Now? 0:20:34.280 --> 0:20:38.360 That functionality what we already providing. It's about transportation, it's 0:20:38.400 --> 0:20:43.840 about safety, civil defense function But you understand that the 0:20:43.920 --> 0:20:49.560 residents of the city having ptserve because twice per day 0:20:49.880 --> 0:20:54.680 the missile attack alarms and they are really tired about 0:20:55.080 --> 0:20:58.240 all of that. That's why somes to Bloom the philanthropists. 0:20:58.240 --> 0:21:02.960 We are now developing the project in mental health area, 0:21:03.040 --> 0:21:07.800 which helps test yourself in the application and after that 0:21:07.960 --> 0:21:13.280 provide additional recommendations and services which helps you improve your 0:21:13.280 --> 0:21:19.480 mental health. And additional AI technology helps us to make 0:21:19.560 --> 0:21:25.080 services and provide services for residents more efficiency. This is 0:21:25.160 --> 0:21:31.119 like call center providing additional services, making recommendations. 0:21:31.680 --> 0:21:34.359 Or like very quickly, which area of your city do 0:21:34.400 --> 0:21:43.080 you need to modernize the most? Excuse me, which area 0:21:43.119 --> 0:21:45.560 of your city do you need to modernize? First? 0:21:49.280 --> 0:21:52.320 Oh, this is the areas that we are covering. This 0:21:52.480 --> 0:21:55.960 is a civil defense, this is a transportation, this is 0:21:56.280 --> 0:22:00.000 self testing and self improvement of the residents. 0:22:00.119 --> 0:22:00.239 Right. 0:22:01.000 --> 0:22:02.880 Oh, leg, it's so good to have some of your time. 0:22:02.920 --> 0:22:04.359 The key of advisor to the Mayor and head of 0:22:04.359 --> 0:22:16.320 Digitalization Olegrinco. We'llcome back to Bluemore Technology. I'm Caroline Hyde 0:22:16.320 --> 0:22:16.960 in New York. 0:22:17.200 --> 0:22:19.000 That I made Ludlow in San Francisco. 0:22:19.320 --> 0:22:21.640 Check on these market said, because while we're still trying 0:22:21.680 --> 0:22:25.960 to digest the shock enhouncement earnings from ASML, chip equipment maker, 0:22:26.040 --> 0:22:29.160 which really managed to pummel some of the chip sector yesterday. 0:22:29.520 --> 0:22:31.760 Today we see a little bit of aprief. We're only 0:22:31.760 --> 0:22:33.359 off by bad a tenth of a percent. We're seeming 0:22:33.400 --> 0:22:35.320 to be flip flopping between gains and losses on the 0:22:35.400 --> 0:22:37.720 Nasdaq one hundred more broadly, off by a tenth of 0:22:37.720 --> 0:22:39.840 a percent. But drill into some of the individual movers, 0:22:39.880 --> 0:22:41.919 because despite the CEO. 0:22:41.800 --> 0:22:43.320 Now speaking out, coming out to. 0:22:43.280 --> 0:22:46.960 Investors to explain the numbers, ASML still under pressure. Let's 0:22:46.960 --> 0:22:48.480 just move on to see what it's doing in terms 0:22:48.480 --> 0:22:51.680 of its ADRs where are traded in the United States. 0:22:51.840 --> 0:22:55.000 We've seen ASML under some pressure. We're currently off by 0:22:55.040 --> 0:22:57.240 more than five percent. Interestingly, though the chip set to 0:22:57.280 --> 0:23:00.480 more broadly is bouncing back. Video in the green. Because look, 0:23:00.520 --> 0:23:03.679 this isn't an AI growth story. Many at pains to 0:23:03.720 --> 0:23:06.359 explain that actually AI really remains the bright spot. The 0:23:06.440 --> 0:23:10.200 sad spot is perhaps the consumer tech area, particularly PC 0:23:10.359 --> 0:23:12.880 volume smartphone. That is why perhaps we see Apple under 0:23:12.880 --> 0:23:14.119 pressure by one point four percent. 0:23:14.240 --> 0:23:18.119 End. Okay, some news from the aerospace sector air buses 0:23:18.200 --> 0:23:21.879 joining Boeing in cost cutting measures. The European plane maker 0:23:22.040 --> 0:23:24.320 will cut up to twenty five hundred jobs in its 0:23:24.359 --> 0:23:28.240 defense and space division. That's equivalent to about seven percent 0:23:28.320 --> 0:23:31.520 of its entire workforce. The companies decided that it needs 0:23:31.560 --> 0:23:33.840 to step up in order to adapt to what it 0:23:33.920 --> 0:23:37.640 called an increasingly difficult space market. 0:23:37.840 --> 0:23:41.680 Carrot, let's just stick with space because AST space Mobile 0:23:41.760 --> 0:23:45.240 is building the first and only cellular broadband network from space. 0:23:45.520 --> 0:23:47.800 It's working with the giants like AT and T, Google, 0:23:47.920 --> 0:23:50.520 Verizon and more, and that makes it the biggest competitor 0:23:50.560 --> 0:23:54.000 to SpaceX in the director sell business. Let's discuss all 0:23:54.040 --> 0:23:57.000 of this as President Scottsnewski, who joins us in the 0:23:57.119 --> 0:24:00.440 studio and Scott many are trying to work out how 0:24:00.480 --> 0:24:03.960 realistic You've got satellites into space. Did that on September 0:24:04.000 --> 0:24:06.760 the twelfth, but there are more to be built, plenty more. 0:24:06.920 --> 0:24:08.160 How are you on this journey? 0:24:08.720 --> 0:24:10.760 Well, we've been at this, and thank you for having us, 0:24:10.760 --> 0:24:13.080 but we've been at this for about seven years now. 0:24:13.920 --> 0:24:16.520 Our network is purpose built just for the space based 0:24:16.560 --> 0:24:19.560 cellular broadband opportunity, and it's purpose built for the operators. 0:24:19.800 --> 0:24:21.840 So we've been working with many of these operators for 0:24:22.080 --> 0:24:24.520 over five years now, and you mentioned a few. We 0:24:24.600 --> 0:24:27.320 have many more abroad as well, and so for us, 0:24:27.960 --> 0:24:31.679 the first step was to launch these first five commercial satellites. 0:24:32.160 --> 0:24:34.680 We'll have more to come starting in Q one, twenty 0:24:34.720 --> 0:24:37.080 twenty five, and our goal is to get about forty 0:24:37.119 --> 0:24:39.280 five to sixty in the US in order to provide 0:24:40.160 --> 0:24:43.000 twenty four to seven commercial service to your phone with 0:24:43.040 --> 0:24:44.399 no modification to your phone. 0:24:45.119 --> 0:24:49.000 Scott, thanks for coming on Bloomberg Technology. Your ability to 0:24:49.119 --> 0:24:55.280 serve the world directly correlates to this constellation in orbit right, 0:24:55.480 --> 0:24:58.840 So from that perspective, just explain to us the timeline 0:24:58.920 --> 0:25:03.520 for expansion, but your ability to serve those markets on Earth. 0:25:03.800 --> 0:25:06.960 Right, Well, we importantly are low Earth orbit network, which 0:25:07.000 --> 0:25:10.040 like you said, means we're global, and that's a problem 0:25:10.080 --> 0:25:12.520 and that you need many satellites. But once you're operational, 0:25:12.640 --> 0:25:15.400 you can service many markets. And that's why we've put 0:25:15.440 --> 0:25:19.720 together this network of forty five plus partnerships globally with 0:25:19.800 --> 0:25:23.560 the mobile network operators who cover collectively over two point 0:25:23.600 --> 0:25:27.119 eight billion subscribers. So that network is something that we 0:25:27.160 --> 0:25:29.280 want to build quickly. Our partners want to build quickly. 0:25:29.280 --> 0:25:31.399 It's a service we want to bring to market and 0:25:31.440 --> 0:25:33.360 we're going to start doing beta service with these first 0:25:33.400 --> 0:25:37.160 five satellites thirty plus minutes a day as soon as 0:25:37.160 --> 0:25:40.880 we continue commission the satellites here in orbit. So from 0:25:40.920 --> 0:25:43.560 there we're vertically integrated, which we think is very important 0:25:44.000 --> 0:25:46.800 for what we're doing. We're based in Texas, we have 0:25:47.040 --> 0:25:50.119 our key hubs here in the United States, in addition 0:25:50.200 --> 0:25:53.040 being publicly traded and based here, and so for us 0:25:53.560 --> 0:25:57.280 getting that factory at full speed, we believe our capacity 0:25:57.320 --> 0:25:59.040 is up to six satellites a month, and these are 0:25:59.080 --> 0:26:03.439 big satellites, very specialized for this application. We're going to 0:26:03.440 --> 0:26:05.639 be building those very rapidly. We've announced that we're in 0:26:05.760 --> 0:26:08.199 interestroduction for the next seventeen and we need to get 0:26:08.240 --> 0:26:09.840 to that forty five to sixty number as soon as 0:26:09.840 --> 0:26:10.160 we can. 0:26:10.600 --> 0:26:13.000 So that is interesting. Caroline and I were at rocket 0:26:13.080 --> 0:26:16.080 Lab Friday for a special show, and what I found 0:26:16.119 --> 0:26:19.719 so fascinating about that is that their limiting factor is 0:26:19.760 --> 0:26:22.800 not their ability to build rockets and launch, it's the 0:26:22.880 --> 0:26:26.000 customers sending things up. So what is your limiting factor? 0:26:26.080 --> 0:26:30.480 It sounds like you can build, is it your launch provider? 0:26:31.359 --> 0:26:33.480 What's kind of the limit on growth? 0:26:34.400 --> 0:26:37.040 Yeah? For us, again, going back and being vertically integrated. 0:26:37.080 --> 0:26:39.720 We control most of the inputs to the supply chain 0:26:39.920 --> 0:26:42.720 and in manufacturing, So for us, we've had a lot 0:26:42.720 --> 0:26:46.639 of success so far this year raising capital. We control 0:26:47.359 --> 0:26:50.840 the manufacturing and supply chain, and we have great partners, 0:26:51.160 --> 0:26:52.639 some of which you just put up on the screen. 0:26:52.800 --> 0:26:55.840 So we believe that the ball is largely in our court. 0:26:56.000 --> 0:26:59.160 Still a lot to work through, but we control most 0:26:59.200 --> 0:27:01.879 of the inputs, action and the ability to deliver the service, 0:27:01.960 --> 0:27:03.720 and we're in a race to get it up to 0:27:03.800 --> 0:27:04.840 orbit as soon as possible. 0:27:05.000 --> 0:27:07.520 Talking of capital that you managed to raise, I mean 0:27:07.680 --> 0:27:08.959 you're potentially going to sell more. 0:27:09.000 --> 0:27:09.240 Stop. 0:27:09.280 --> 0:27:12.119 We're up three hundred percent here to date, you have 0:27:12.240 --> 0:27:17.280 been the best performing Russell two thousand name record highs 0:27:17.400 --> 0:27:20.800 thirteen hundred percent up from its previous slow but thirty 0:27:20.840 --> 0:27:23.919 percent of the outstanding shares are shorted. What do you 0:27:23.960 --> 0:27:27.040 say to those shorts who are worried about the ability 0:27:27.080 --> 0:27:30.240 to make this discussion and reality right? 0:27:30.480 --> 0:27:32.720 What we think what we have is very highly differentiated 0:27:32.760 --> 0:27:35.120 technology and excellent partners that we've. 0:27:34.920 --> 0:27:36.720 Been able like SpaceX that you're competing against. 0:27:36.760 --> 0:27:40.080 Yes, exactly, so what we're doing is very different. Cellular 0:27:40.119 --> 0:27:43.520 broadband from space is very different from SOS or texts, 0:27:43.560 --> 0:27:46.760 so we think that we're very useful to the operators 0:27:46.760 --> 0:27:49.240 who've partnered with us. We're very we're going to provide 0:27:49.359 --> 0:27:52.320 a service that's very, very important to the consumer. You know, 0:27:52.320 --> 0:27:54.080 when our phone doesn't work, it weighs very heavy in 0:27:54.119 --> 0:27:57.000 our pocket. So we think that the demand for our 0:27:57.040 --> 0:28:00.919 service is very significant and we're pushing as fast as 0:28:00.960 --> 0:28:03.000 we can. Our stock has performed well on the back 0:28:03.080 --> 0:28:06.199 of I think our success this year. But for us, 0:28:06.240 --> 0:28:08.480 we have to produce for our shareholders and for our customers, 0:28:08.520 --> 0:28:11.200 and we're very eager to do that. As we discussed 0:28:12.040 --> 0:28:16.160 on the capital side, we've announced success with the US 0:28:16.200 --> 0:28:20.480 government as a customer and prepayments with many of our 0:28:20.520 --> 0:28:25.639 top providers customers who will get initial access to our network. 0:28:25.680 --> 0:28:28.920 So for us, the stock has performed well, but we've 0:28:29.520 --> 0:28:32.320 offerings in twenty twenty five and twenty twenty four and 0:28:32.359 --> 0:28:33.600 we've plan to stick with that. 0:28:34.320 --> 0:28:36.280 Scott, I'm sorry I'm pushing my luck with time, but 0:28:36.400 --> 0:28:39.880 the team know that I'm excited about this area. Explain 0:28:39.920 --> 0:28:42.160 how it works from a revenue split perspective. So if 0:28:42.160 --> 0:28:45.520 I use my phone in my pocket, you're partnering with 0:28:45.560 --> 0:28:49.240 the carrier AT and T. It's your constellation and your technology, 0:28:49.760 --> 0:28:52.240 but you need to kind of split who's making money 0:28:52.240 --> 0:28:56.040 in the transaction. Explain that very quickly, please well. 0:28:56.080 --> 0:28:59.360 Our organizing principle from the beginning has been a revenue share, 0:28:59.480 --> 0:29:03.280 so a service that's unique, it's supplemental to the coverage 0:29:03.320 --> 0:29:05.920 that our partners provide, and it's a service that will 0:29:05.960 --> 0:29:08.920 be provided through that partner. So for us, our organizing 0:29:08.920 --> 0:29:12.120 principle has been a revenue share with all of our customers. 0:29:12.600 --> 0:29:15.640 There's many ways to go to market that are very interesting, 0:29:15.800 --> 0:29:18.880 and we'll be flexible by market, but at its core, 0:29:19.560 --> 0:29:22.440 we want to drive new revenue, new growth, help our 0:29:22.480 --> 0:29:26.560 customers reduce churn by making their service more valuable, and 0:29:26.640 --> 0:29:28.960 in that process we show the revenue. 0:29:29.320 --> 0:29:32.080 Come on when you hit those targets. AST Space Mobile 0:29:32.120 --> 0:29:34.520 President Scott asnews Key. We thank you for your time 0:29:34.640 --> 0:29:35.760 and what have we got coming up? 0:29:36.160 --> 0:29:38.560 Yes, more news in talkie tech First start check out 0:29:38.560 --> 0:29:41.960 this terminal CHARTSML has officially lost its place as your 0:29:42.160 --> 0:29:46.200 most Valuable Tech company to software firm SAP. That's, of course, 0:29:46.240 --> 0:29:50.200 after a guidance cut sent the Dutch chip makers shares plunging. 0:29:50.560 --> 0:29:53.640 As mentioned earlier, SML lost about sixty five billion dollars 0:29:53.680 --> 0:29:56.320 in market cap in that session, also booked only about 0:29:56.400 --> 0:30:00.000 half the orders that analysts were expecting. In Q three plus, 0:30:00.080 --> 0:30:03.760 Airbnb's launched a new feature that allows homeowners to hire 0:30:03.800 --> 0:30:07.440 fellow hosts to manage their rentals. The idea for hosts 0:30:07.440 --> 0:30:10.240 to have a new resource to furnish their home, managed 0:30:10.240 --> 0:30:14.200 bookings and coordinate guest logistics. Airbnb hopes the new feature 0:30:14.240 --> 0:30:18.360 will help boost listings and paramounts. Three co CEOs will 0:30:18.360 --> 0:30:21.760 get paid even if they're not the boss. According to 0:30:21.840 --> 0:30:24.680 a regulatory filing, they will receive their improved annual cash 0:30:24.720 --> 0:30:28.320 bonuses even if they're replaced. Paramounts in the process of 0:30:28.400 --> 0:30:31.640 merging with Skydance Media and the new CEO's expected has 0:30:31.720 --> 0:30:34.800 been named when the deal closes in the first half 0:30:35.080 --> 0:30:35.760 of next year. 0:30:35.880 --> 0:30:38.160 Karro coming up, we're going to be talking another of 0:30:38.200 --> 0:30:42.080 your favorite zed Jason Chairman, Convoy, co founder, managing partner 0:30:42.120 --> 0:30:45.440 on the state of the gaming industry and investments. 0:30:45.800 --> 0:30:54.640 As a bluebog technology. 0:30:56.720 --> 0:30:59.760 Convoy estimates the gaming market size to reach one hundred 0:30:59.800 --> 0:31:02.920 eighty eight billion dollars this year with VC funding in 0:31:03.000 --> 0:31:07.080 games reaching five hundred and seventeen million so far more 0:31:07.080 --> 0:31:10.240 in that landscape, including the impact of AI Convoy co 0:31:10.360 --> 0:31:13.479 founder and managing partner Jason Chapman joins us, Now, I 0:31:13.520 --> 0:31:16.040 find that so interesting. We can get into the health 0:31:16.080 --> 0:31:19.280 of this industry a little bit, but the sheer size 0:31:19.320 --> 0:31:23.320 of the overall industry, the size one hundred and eighty eight, 0:31:24.120 --> 0:31:25.680 why is that important? 0:31:26.880 --> 0:31:29.080 I mean, baby one, thank you ed, thank you Carolin 0:31:29.120 --> 0:31:32.240 for having me. Yes, gaming is the most significant portion 0:31:32.360 --> 0:31:36.440 of the entertainment market today. Right. We're larger than linear TV, 0:31:36.520 --> 0:31:41.360 We're larger than OTT, we're larger than movies, music in 0:31:41.400 --> 0:31:44.720 many cases some of those industries combined. Gaming has continued 0:31:44.720 --> 0:31:48.320 to grow. It's proven, that's recession resilient. It's been tested 0:31:48.360 --> 0:31:50.640 and tried in just about every way, shape and form. 0:31:50.640 --> 0:31:51.320 And yes, we're. 0:31:51.200 --> 0:31:54.880 Really pleased to see that funding has normalized. You know, 0:31:54.920 --> 0:31:57.800 the last six quarters were seen roughly around five hundred 0:31:57.800 --> 0:31:59.760 and six hundred million dollars with usted on a quarterly 0:31:59.800 --> 0:32:03.400 based this into games and we see no reason that 0:32:03.400 --> 0:32:06.600 that will stop. And that, paired with interest rates driving down, 0:32:07.000 --> 0:32:10.120 open up the IPO markets pretty polish. On a twenty 0:32:10.160 --> 0:32:10.840 twenty five. 0:32:10.640 --> 0:32:11.640 For games, Jason. 0:32:11.760 --> 0:32:15.080 Given the size, the sheer scale of the overall industry, 0:32:15.240 --> 0:32:16.880 how much of a chunk of change does it get 0:32:16.920 --> 0:32:20.280 in the VC area? Is it synonymous to the extent 0:32:20.320 --> 0:32:22.480 of its size and entertainment broadly. 0:32:23.240 --> 0:32:25.600 Yes, So if you look at you know, larger venture, 0:32:25.640 --> 0:32:28.400 there's about fifty to sixty billion dollars invested a quarter. 0:32:29.240 --> 0:32:31.400 We're seeing about five hundred and six hundred million of 0:32:31.400 --> 0:32:34.760 that in games, so it is a significant portion. It's 0:32:34.800 --> 0:32:36.440 also a lot more stable. I think you see a 0:32:36.440 --> 0:32:38.920 lot less flash in the pans as you're seen right now. 0:32:39.000 --> 0:32:40.520 You know, a couple of years ago in Web three 0:32:40.640 --> 0:32:43.360 or this year you're seeing in AI. Gaming is kind 0:32:43.360 --> 0:32:45.320 of steady state, and so we're very pleased to see that. 0:32:45.640 --> 0:32:48.400 We're expecting to see you know, continued interest this you know, 0:32:48.560 --> 0:32:50.680 rounting out this year, and also we a to twenty 0:32:50.680 --> 0:32:51.120 twenty five. 0:32:52.840 --> 0:32:54.320 I want to just try out if we can get 0:32:54.320 --> 0:32:56.200 all three of us on screen for a moment, because 0:32:56.920 --> 0:33:00.680 we had such a fun conversation last week. We're in 0:33:00.840 --> 0:33:04.200 LA We're discussing sort of the industry more broadly when 0:33:04.240 --> 0:33:07.120 it comes to gaming, and we had a legend from 0:33:07.120 --> 0:33:09.960 Blizzard join the show has got a news studio, but 0:33:10.040 --> 0:33:13.000 there is still a lot to sort of focus on 0:33:13.040 --> 0:33:14.840 when it comes to the development of games and how 0:33:14.880 --> 0:33:15.479 hard it is. 0:33:16.360 --> 0:33:19.080 Right, you're talking about Mike Morheim, and last night I 0:33:19.160 --> 0:33:21.480 was at an event with Jason Schreier with loads of 0:33:21.480 --> 0:33:24.800 developers in the room, And the reason I'm so fixated 0:33:24.840 --> 0:33:27.800 on Jason's one hundred and eighty eight billion number is 0:33:27.840 --> 0:33:30.960 it's getting bigger. But all the people in that room Jason, 0:33:31.000 --> 0:33:35.600 who were developers would tell you that they're suffering layoffs 0:33:35.600 --> 0:33:39.840 at video game publishers, and developers are increasing the crunch. 0:33:40.200 --> 0:33:42.920 The crunch, you know exactly what that is, is more 0:33:42.960 --> 0:33:45.640 real than ever. So why is the industry getting bigger? 0:33:47.040 --> 0:33:49.160 I mean, I think it's getting bigger because people continue 0:33:49.200 --> 0:33:51.600 to want to spend time in interactive environments. You know, 0:33:51.960 --> 0:33:54.000 if you look at younger generations, they're spending less and 0:33:54.080 --> 0:33:56.640 less time watching TV, which is passive. They want to 0:33:56.640 --> 0:33:59.360 be in an environment that they could interact impact and 0:33:59.400 --> 0:34:02.600 so that's absolutely true. Why is there the crunching games 0:34:02.880 --> 0:34:06.040 people talk about this a lot, is because look, users 0:34:06.040 --> 0:34:09.000 are very demanding. We expect a lot from our games. 0:34:09.200 --> 0:34:11.960 We've been spoiled over the years. We have great creatives 0:34:12.000 --> 0:34:14.279 producing high quality content that we get to enjoy on 0:34:14.320 --> 0:34:17.040 a daily and weekly basis, and that's never going to stop. 0:34:17.880 --> 0:34:19.600 I think you're talking about the layoffs. 0:34:19.680 --> 0:34:22.600 Yes, we've seen about thirteen thousand jobs lost in the 0:34:22.600 --> 0:34:24.880 games industry that we've tracked from the public companies. It's 0:34:25.000 --> 0:34:27.480 likely a lot higher if you include private companies. We 0:34:27.600 --> 0:34:30.560 expect it we'll see more, and I think that's a 0:34:30.600 --> 0:34:32.560 healthy thing in industry. I know that's really hard to 0:34:32.600 --> 0:34:35.480 say and hard to hear, but we over hired during 0:34:35.520 --> 0:34:38.160 the boom era. We're going through right sizing now and 0:34:38.239 --> 0:34:40.760 it's really encouraging to see that even in that right sizing, 0:34:41.120 --> 0:34:44.480 our industry continues to thrive and to grow. And that 0:34:45.000 --> 0:34:47.040 is an encouraging reality, I think for those in the games, 0:34:47.040 --> 0:34:48.320 and one that we should all remember. 0:34:49.000 --> 0:34:52.120 What's not healthy at the moment is child safety and 0:34:52.200 --> 0:34:53.879 lo I've got a seven year old at home who 0:34:53.920 --> 0:34:57.200 is desperate to be on roadblocks and on Minecraft instead. 0:34:57.200 --> 0:34:59.400 I had in books about it because I've got to 0:34:59.400 --> 0:35:02.839 get my safety precautions and get understand how I make 0:35:02.920 --> 0:35:05.359 him safe online before I let him do it. How 0:35:05.400 --> 0:35:09.040 are you thinking about what's happening versus TikTok, the Child's Safety. 0:35:08.719 --> 0:35:11.480 Bill, and also how that in broils things like roadblogs. 0:35:12.080 --> 0:35:14.120 As kids spend more and more time online. And I 0:35:14.160 --> 0:35:16.160 have a lot of empathy for this as a parent myself. 0:35:16.680 --> 0:35:19.439 You have to take that very seriously in every way, 0:35:19.440 --> 0:35:22.920 shape and form. Right, So, wherever this is and wherever 0:35:22.960 --> 0:35:24.359 it is, that's where you need to. 0:35:24.280 --> 0:35:25.000 Protect the kids. 0:35:25.800 --> 0:35:27.279 And so when we're looking at this, you know, we 0:35:27.320 --> 0:35:29.000 think about this in a lot of different ways, and 0:35:29.040 --> 0:35:31.799 you know, every single gaming firm has to reconcile that 0:35:31.920 --> 0:35:35.080 if you command a kid's time, you're taking responsibility and 0:35:35.280 --> 0:35:38.360 sort of digital daycare. We've invested pretty heavily in the space. 0:35:38.400 --> 0:35:41.720 One of our investments is kid, which is actually tacking 0:35:41.840 --> 0:35:44.840 this issue straight on, which is trying to promote and 0:35:45.360 --> 0:35:48.920 ensure that the companies are compliant with different regulations across 0:35:48.920 --> 0:35:50.680 the globe. This is one of the huge challenges for 0:35:50.719 --> 0:35:53.040 games companies. Again, I have a lot of empathy for them. 0:35:53.239 --> 0:35:54.880 When you release a game, you release a game in 0:35:54.920 --> 0:35:57.920 you know, over one hundred countries. Trying to stay compliant 0:35:57.920 --> 0:36:00.200 and ensure that every kid is safe according to the law, 0:36:00.280 --> 0:36:02.280 it's very difficult, and that's why we made this investment 0:36:02.320 --> 0:36:05.000 early on, and they've continued to thrive. I think what 0:36:05.000 --> 0:36:08.520 you're highlighting to Caroline with Roadblocks. Obviously, the Hindenberger report 0:36:08.560 --> 0:36:14.040 that came out was pretty intense with their allegations. I'd 0:36:14.040 --> 0:36:16.520 say towards a kind of two sides of the house. 0:36:16.560 --> 0:36:18.279 One is child safety, the other one is kind of 0:36:18.280 --> 0:36:20.440 their financial metrics. A'll hone it on the child safety 0:36:20.440 --> 0:36:21.240 metrics for a second. 0:36:21.480 --> 0:36:21.640 Free. 0:36:21.680 --> 0:36:26.680 Yeah, they have to take this very seriously. It's something 0:36:26.760 --> 0:36:29.839 they have to look into, but until proven otherwise, you know, 0:36:29.880 --> 0:36:32.080 I think that Roadblocks has proven to be a best 0:36:32.120 --> 0:36:34.360 in class digital property. I would like to think that 0:36:34.400 --> 0:36:36.319 they can handle these issues head on. 0:36:36.960 --> 0:36:38.719 Jason Chapman and Convoy thank you. 0:36:46.239 --> 0:36:49.319 Amazon says it's teaming with financier Ken Griffin to make 0:36:49.360 --> 0:36:52.880 a five hundred million dollar investment in small nuclear reactors. 0:36:53.320 --> 0:36:56.480 Is what a ws CEO Matt Garmon said earlier today. 0:36:57.200 --> 0:37:00.440 As the world continues to modernize, continues to digital, as 0:37:00.440 --> 0:37:03.040 we think about the power of generative AI, all of 0:37:03.040 --> 0:37:05.920 these capabilities are leading to the demands of more power. 0:37:06.000 --> 0:37:09.279 So nuclear is an incredibly important part of reaching that 0:37:09.320 --> 0:37:10.759 carbon zero goal for us. 0:37:11.920 --> 0:37:14.239 We'll hear more from Matt Garman tomorrow, where he joins 0:37:14.280 --> 0:37:18.120 us right here on Bloomberg Technology. Okay, Amazon's not the 0:37:18.120 --> 0:37:21.239 only one. Google, Let's got a nuclear The company says 0:37:21.280 --> 0:37:24.520 it's investing in the development of several small nuclear power 0:37:24.560 --> 0:37:27.680 reactors across the United States. It hopes the deal your 0:37:27.760 --> 0:37:30.239 Cairos power will help it meet the growing need for 0:37:30.280 --> 0:37:34.960 electricity to fuel ai Here now, Michael Terrell, Senior director 0:37:35.160 --> 0:37:37.759 of Energy and Climate at Google, and I guess that 0:37:37.840 --> 0:37:41.080 the best starting point because it's well documented the terms 0:37:41.080 --> 0:37:44.640 of the deal SMRs and what they are, is whether 0:37:44.680 --> 0:37:49.440 it meaningfully changes the trajectory of meeting your power needs 0:37:49.960 --> 0:37:53.920 but also your targets for climate as well well. 0:37:54.040 --> 0:37:57.160 The world needs more carbon free energy and this agreement 0:37:57.200 --> 0:38:00.400 that we've signed with Cairos is an important mouse and 0:38:00.440 --> 0:38:02.640 what's been a fifteen year journey at Google to make 0:38:02.640 --> 0:38:06.120 the transition to clean energy. It's our first nuclear energy deal, 0:38:06.560 --> 0:38:09.680 and we feel that nuclear is a very important technology 0:38:09.840 --> 0:38:13.799 for going carbon free for offices, data centers, communities where 0:38:13.840 --> 0:38:17.480 we operate, because it's an always on carbon free energy resource. 0:38:17.920 --> 0:38:21.839 I'm very interested in the technology, you know, I am, 0:38:22.040 --> 0:38:24.280 but I'm also interested in the economics and the math. 0:38:24.800 --> 0:38:27.920 Are you able to say, even if it's an estimate 0:38:28.320 --> 0:38:31.360 kind of way, you see the dollar pamegual hour being 0:38:32.080 --> 0:38:36.080 by twenty thirty, twenty thirty five when these come online. 0:38:36.320 --> 0:38:38.399 Well, I can't talk about the specifics of this deal, 0:38:38.400 --> 0:38:40.560 but what's interesting about it is we didn't do a 0:38:40.600 --> 0:38:43.400 deal for just one reactor. It's actually for a series 0:38:43.400 --> 0:38:45.799 of reactors, what we call an order book, and that 0:38:45.880 --> 0:38:48.719 repeatability helps to drive down costs, It helps to take 0:38:48.760 --> 0:38:50.200 the technology to scale faster. 0:38:51.040 --> 0:38:55.400 Your focus is eliminating carbon emissions by twenty thirty. 0:38:55.760 --> 0:38:56.680 Does this get you there? 0:38:56.719 --> 0:38:59.120 Michael, that's right, Caroline. 0:38:59.200 --> 0:39:01.080 We have a goal as a company to be twenty 0:39:01.080 --> 0:39:04.360 four to seven carbon free and everywhere we operate in 0:39:04.440 --> 0:39:06.040 every location, every hour. 0:39:05.800 --> 0:39:08.080 Of the day, and it's a huge challenge. 0:39:08.320 --> 0:39:10.840 We've actually been in this space for fifteen years in 0:39:10.920 --> 0:39:13.799 terms of doing wind and solar large deals. We're one 0:39:13.840 --> 0:39:16.319 of the largest corporate purchasers of wind and solar on 0:39:16.360 --> 0:39:19.279 the planet. We signed over one hundred deals. But we 0:39:19.440 --> 0:39:21.840 know that to get to carbon free twenty four hours 0:39:21.840 --> 0:39:24.600 a day, we're going to need more technologies than just 0:39:24.680 --> 0:39:27.520 wind and solar. The wind doesn't blow all the time, 0:39:27.600 --> 0:39:29.799 the sun doesn't shine all the time. And what's great 0:39:29.840 --> 0:39:32.600 about technologies like advanced nuclear is that they provide a 0:39:32.640 --> 0:39:35.520 more always on resource. So it's a very big part 0:39:35.600 --> 0:39:40.040 of our path to twenty four to seven carbon free energy, but. 0:39:40.040 --> 0:39:43.880 It takes time and right now AI generator AI, the 0:39:43.920 --> 0:39:47.160 training of it is in the here and now. Do 0:39:47.200 --> 0:39:51.320 you have the energy infrastructure necessary to satisfy that demand? 0:39:52.960 --> 0:39:54.960 Yes, we do, and it's why we're making big bets 0:39:55.000 --> 0:39:57.320 like we are on nuclear, but we're also still betting 0:39:57.320 --> 0:39:59.920 big on wind and solar and storage. We signed over 0:40:00.120 --> 0:40:03.080 or four gigawatts of deals just last year, the most 0:40:03.080 --> 0:40:05.560 we've ever signed in a single year, and now we're 0:40:05.560 --> 0:40:08.480 inking new agreements with utilities to develop a portfolio of 0:40:08.520 --> 0:40:11.240 technologies that can meet our twenty four to seven carbon 0:40:11.239 --> 0:40:14.440 free needs. So we're both betting short term and long term. 0:40:14.680 --> 0:40:17.000 I know you won't give me a dollar pamegal hour figure, 0:40:17.280 --> 0:40:20.839 but you do expect the SMRs to be competitive and 0:40:20.880 --> 0:40:24.520 of value versus solar and wind and the other technologies 0:40:24.560 --> 0:40:25.200 you outlined. 0:40:25.400 --> 0:40:27.879 Absolutely, we wouldn't do this if it didn't make sense 0:40:27.920 --> 0:40:28.600 for our business. 0:40:29.000 --> 0:40:30.560 And you know, one of the things that I think. 0:40:30.400 --> 0:40:32.280 We ought to really think about in how we value 0:40:32.320 --> 0:40:36.560 these approaches is they're always on nature exactive technology, and 0:40:36.600 --> 0:40:38.439 it delivers a lot of value and you can put 0:40:38.440 --> 0:40:41.520 it anywhere, and so that again is very good. 0:40:41.440 --> 0:40:42.000 For the business. 0:40:41.960 --> 0:40:43.879 So we can't just jump in really quick and ask 0:40:43.960 --> 0:40:48.400 you your job is really interesting because you are responsible 0:40:48.440 --> 0:40:51.919 for the energy needs. If you're not calculating the cost 0:40:52.000 --> 0:40:54.120 per megal hour, do you have a clear figure in 0:40:54.160 --> 0:40:57.160 your head about the energy need over a five year 0:40:57.280 --> 0:40:58.680 or ten year time horizon. 0:40:58.920 --> 0:41:02.000 Yeah, what we've been doing for like I said, fifteen years. 0:41:02.040 --> 0:41:03.840 We have a good sense of how our demand is 0:41:03.880 --> 0:41:05.279 going to grow. We have a good sense of the 0:41:05.320 --> 0:41:08.440 portfolio of resources that we need, and we're making decisions 0:41:08.440 --> 0:41:09.520 that make sense for the business. 0:41:09.520 --> 0:41:11.319 It makes sense for our growth as a company. So 0:41:11.360 --> 0:41:12.520 we feel we're on a good path. 0:41:13.239 --> 0:41:13.479 Loop. 0:41:13.760 --> 0:41:16.040 It's busy out there at Nuclear Never have we talked 0:41:16.080 --> 0:41:16.680 about it more. 0:41:16.719 --> 0:41:20.000 And the Amazon deal for example, these are companies that 0:41:20.040 --> 0:41:23.480 we've not really heard of, Cairo's Power, the Private x Energy. 0:41:23.719 --> 0:41:25.880 Are there enough startups. 0:41:25.440 --> 0:41:28.640 Enough companies building what you need right now to partner with? 0:41:30.080 --> 0:41:30.279 You know? 0:41:30.320 --> 0:41:32.560 It reminds me of the early days of wind and solar. 0:41:32.640 --> 0:41:35.880 We were one of the pioneers and signing corporate ppa 0:41:35.960 --> 0:41:38.440 agreements to buy these technologies, and there were not a 0:41:38.440 --> 0:41:39.239 lot of players in the. 0:41:39.239 --> 0:41:41.120 Early days of those as well. 0:41:41.120 --> 0:41:43.880 But now with this new set of technologies that we're 0:41:43.920 --> 0:41:45.279 going to need to get to twenty four to seven 0:41:45.320 --> 0:41:48.000 carbon free energy, it's not just nuclear, it's enhanced you 0:41:48.000 --> 0:41:50.919 a thermal, it's long duration storage, and so it's great 0:41:50.920 --> 0:41:52.080 to see others getting in the game. 0:41:52.080 --> 0:41:52.800 The more the merrier. 0:41:52.840 --> 0:41:55.840 I'd like to see one hundred more companies doing nuclear deals. 0:41:55.840 --> 0:41:57.160 From what we've seen this week. 0:41:57.000 --> 0:41:59.000 We're running out of time, so you will look at 0:41:59.040 --> 0:42:01.520 GA Thermal and can you give us a proportion of 0:42:01.560 --> 0:42:05.040 what you see the contribution of nuclear, geofermal and solar. 0:42:05.280 --> 0:42:05.440 Yeah. 0:42:05.560 --> 0:42:08.280 Actually, Geothermore was one of the first advanced energy deals 0:42:08.280 --> 0:42:10.200 that we did. We signed a deal in twenty twenty 0:42:10.200 --> 0:42:12.840 one to do a project in Nevada. It's now skilled 0:42:12.840 --> 0:42:14.759 to a deal that's twenty five times bigger than that 0:42:14.800 --> 0:42:17.920 original project. So we've got experience in dealing with these 0:42:18.000 --> 0:42:21.560 new technologies and we're super excited about the potential for nuclear. 0:42:22.200 --> 0:42:25.120 Michael Terrell, Senior director of Energy and Climate at Google, 0:42:25.160 --> 0:42:27.840 really appreciate you joining us here. On Bloomberg Technology. 0:42:27.920 --> 0:42:31.759 Carroc, what a wide rating ranging condition on Bloomberg Technology. 0:42:31.800 --> 0:42:34.920 We've done it all, from space to power to ASML. 0:42:35.040 --> 0:42:37.520 Still need to track that, yeah, and keep your eye 0:42:37.560 --> 0:42:39.680 on the chip sector throughout the day because twenty four 0:42:39.680 --> 0:42:41.880 hours it's been a bit of a wild ride. Recap 0:42:41.920 --> 0:42:43.719 on the podcast. You know where to find it on 0:42:43.760 --> 0:42:47.680 all the Bloomberg platforms as well as online on Apple, Spotify, 0:42:47.840 --> 0:42:50.279 and iHeart. Thank you New York team and everyone here 0:42:50.280 --> 0:42:52.480 in SF. This is Bloomberg Technology.