1 00:00:04,080 --> 00:00:07,720 Speaker 1: Bloomberg Tech is a live from coast to coast with 2 00:00:07,880 --> 00:00:09,160 Speaker 1: Caroline Hide. 3 00:00:08,840 --> 00:00:11,680 Speaker 2: In New York and Eva Low in Sent Francisco. 4 00:00:14,320 --> 00:00:17,239 Speaker 1: This is Bloomberg Tech coming up, Small moves and socks 5 00:00:17,320 --> 00:00:20,400 Speaker 1: this morning as traders I, Iran and Oil will bring 6 00:00:20,440 --> 00:00:21,560 Speaker 1: you the tech sector reaction. 7 00:00:21,600 --> 00:00:22,959 Speaker 2: As Palenteer closes. 8 00:00:22,640 --> 00:00:26,640 Speaker 1: In on a new record high plus investments in defense tech, 9 00:00:26,680 --> 00:00:29,720 Speaker 1: they continue to increase the venture capital story this hour 10 00:00:30,320 --> 00:00:34,240 Speaker 1: and Tesla's Robotaxi it finally hits the streets of Austin 11 00:00:34,520 --> 00:00:38,000 Speaker 1: shares sow we discussed the reality of the company's city expansion. 12 00:00:38,600 --> 00:00:40,360 Speaker 2: Bloomberg's un Verstelica joins us. 13 00:00:40,400 --> 00:00:43,960 Speaker 1: Now I start with Palenteer, which has in encroaching on 14 00:00:44,000 --> 00:00:46,680 Speaker 1: a record high once again. It is the defense tech 15 00:00:46,760 --> 00:00:48,520 Speaker 1: stock that's being played on today. 16 00:00:49,560 --> 00:00:51,680 Speaker 3: Yes, absolutely, thanks for having me on. So it does 17 00:00:51,720 --> 00:00:54,200 Speaker 3: see a lot of demand in interest from sort of 18 00:00:54,200 --> 00:00:58,240 Speaker 3: government contracts, defense adjacent sort of services. So the fact 19 00:00:58,280 --> 00:01:00,320 Speaker 3: that you have this sort of increase in jail political 20 00:01:00,400 --> 00:01:03,319 Speaker 3: uncertainty right now, it's not surprising that Palanteer is one 21 00:01:03,320 --> 00:01:05,120 Speaker 3: of the initial beneficiaries of this. 22 00:01:05,959 --> 00:01:09,280 Speaker 1: Let's look at also what the beneficiaries could be. More broadly, 23 00:01:09,480 --> 00:01:12,680 Speaker 1: I want to highlight a note what came from Wedbush 24 00:01:12,720 --> 00:01:17,080 Speaker 1: analysts this morning, and they're really talking about how maybe 25 00:01:17,120 --> 00:01:21,160 Speaker 1: if we do dial down anxiety surrounding Iran, this could 26 00:01:21,400 --> 00:01:26,199 Speaker 1: end up refueling regalvanizing the AI trade in particular because 27 00:01:26,200 --> 00:01:29,119 Speaker 1: of the Middle East focus. They say, the biggest threat 28 00:01:29,200 --> 00:01:31,559 Speaker 1: to the region and the potential Blackswan event was Iran 29 00:01:31,600 --> 00:01:33,760 Speaker 1: and its nuclear program, and now that threat is gone, 30 00:01:33,800 --> 00:01:36,759 Speaker 1: so basically we can see the AI revolution come more 31 00:01:36,800 --> 00:01:37,320 Speaker 1: into play. 32 00:01:37,560 --> 00:01:38,800 Speaker 2: Which stocks does that affect? 33 00:01:38,880 --> 00:01:42,039 Speaker 3: Ryan, Well, we've seen a number of these AI companies 34 00:01:42,120 --> 00:01:46,280 Speaker 3: like Nvidia announces major sovereign deals with AI and company 35 00:01:46,400 --> 00:01:48,960 Speaker 3: or countries in the Middle East. Excuse me, So if 36 00:01:48,960 --> 00:01:51,559 Speaker 3: we do see some sort of you know, follow through 37 00:01:51,600 --> 00:01:53,680 Speaker 3: on these kinds of deals, these kinds of contracts as 38 00:01:53,800 --> 00:01:57,360 Speaker 3: kind of a region as an area for new unappreciated 39 00:01:57,360 --> 00:02:00,200 Speaker 3: revenue growth, obviously this is something we could continue to 40 00:02:00,200 --> 00:02:02,560 Speaker 3: see being a driver of stock prices from here. 41 00:02:02,760 --> 00:02:05,520 Speaker 1: It's interesting though that NVIDIAs started the day lower and 42 00:02:05,560 --> 00:02:09,040 Speaker 1: it's ultimately would have pulled the benchmark itself in the red. 43 00:02:09,480 --> 00:02:12,440 Speaker 2: Why are we seeing and dialing back in risk aversion? 44 00:02:12,440 --> 00:02:14,760 Speaker 2: Do you think? Well, I think in. 45 00:02:14,680 --> 00:02:16,400 Speaker 3: General, like when you have this kind of rise in 46 00:02:16,440 --> 00:02:20,200 Speaker 3: geopolitical uncertainty, big tech stocks often act as a kind 47 00:02:20,240 --> 00:02:22,440 Speaker 3: of safe haven in the market. I think, kind of 48 00:02:22,480 --> 00:02:24,639 Speaker 3: regardless of what else is going on, this is a 49 00:02:24,680 --> 00:02:27,760 Speaker 3: group that has seen as having pretty durable growth prospects, 50 00:02:27,800 --> 00:02:32,359 Speaker 3: pretty strong and reliable earning streams, tons of cash, very 51 00:02:32,360 --> 00:02:35,320 Speaker 3: strong economic modes and competitive modes, all these things, and 52 00:02:35,400 --> 00:02:38,320 Speaker 3: you kind of put them together in uncertain environment, they 53 00:02:38,360 --> 00:02:42,160 Speaker 3: still look like safe plays, you know, like all things considered. Obviously, 54 00:02:42,200 --> 00:02:44,920 Speaker 3: there are some concerns about valuation, but I think ultimately, 55 00:02:45,520 --> 00:02:47,600 Speaker 3: you know, they sort of act as you know, this 56 00:02:47,720 --> 00:02:50,480 Speaker 3: sort of generation's version of defensive and sort of safe 57 00:02:50,480 --> 00:02:51,240 Speaker 3: haven trades. 58 00:02:51,840 --> 00:02:54,960 Speaker 2: Rand Vlastelica on the market reaction. Thank you so much. 59 00:02:55,160 --> 00:02:57,799 Speaker 1: Let's bring you more analysis on when next in terms 60 00:02:57,840 --> 00:03:00,320 Speaker 1: of the geopolitics. Emily Harding's with us from the Center 61 00:03:00,360 --> 00:03:03,040 Speaker 1: for Strategic and International Studies. You're also the director for 62 00:03:03,120 --> 00:03:06,520 Speaker 1: its Intelligence, National Security, and Technology Program and vice president 63 00:03:06,560 --> 00:03:09,720 Speaker 1: of the Defense and Security Department. Emily, we turned to 64 00:03:09,760 --> 00:03:12,400 Speaker 1: you for your tech and your intelligence expertise here and 65 00:03:12,440 --> 00:03:14,920 Speaker 1: actually you say this is the moment for intelligence officers 66 00:03:14,919 --> 00:03:15,400 Speaker 1: to shine. 67 00:03:15,480 --> 00:03:19,880 Speaker 4: Why so one of the really important questions going forward 68 00:03:20,000 --> 00:03:22,160 Speaker 4: is going to be just how much damage was done 69 00:03:22,160 --> 00:03:25,600 Speaker 4: to Iran's three main nuclear facilities. And I mean it 70 00:03:25,639 --> 00:03:27,760 Speaker 4: seems obvious to say it, but you can't exactly walk 71 00:03:27,800 --> 00:03:29,760 Speaker 4: up to these facilities on the ground and take a look. 72 00:03:30,040 --> 00:03:32,120 Speaker 4: So it's going to be the skill and the work 73 00:03:32,280 --> 00:03:35,360 Speaker 4: of people who do things like geospatial analysis, people who 74 00:03:35,440 --> 00:03:38,080 Speaker 4: collect human intelligence to really do their best work here 75 00:03:38,120 --> 00:03:40,840 Speaker 4: and figure out what was destroyed and what wasn't. And 76 00:03:40,880 --> 00:03:43,760 Speaker 4: why that matters is because if Iran was left with 77 00:03:43,800 --> 00:03:47,360 Speaker 4: an enrichment capability and with a weaponization capability, they could 78 00:03:47,360 --> 00:03:49,640 Speaker 4: try to sprint to a weapon as soon as the 79 00:03:49,680 --> 00:03:50,720 Speaker 4: Israeli campaign is over. 80 00:03:51,280 --> 00:03:54,600 Speaker 1: What's really interesting is I think a military satellite makers, 81 00:03:55,000 --> 00:03:56,720 Speaker 1: in fact, one of them is eyeing an IPO at 82 00:03:56,720 --> 00:03:59,480 Speaker 1: the moment. ICI, can you tell us a little bit 83 00:03:59,480 --> 00:04:01,640 Speaker 1: about the sets that need to be in place for 84 00:04:01,760 --> 00:04:03,880 Speaker 1: us to get the imagery that's necessary here. 85 00:04:05,200 --> 00:04:07,560 Speaker 4: It's a really interesting moment for what we call open 86 00:04:07,600 --> 00:04:10,040 Speaker 4: source intelligence. And that's just another way of saying that 87 00:04:10,080 --> 00:04:12,200 Speaker 4: all of these industry actors that are out there with 88 00:04:12,240 --> 00:04:16,280 Speaker 4: these amazing satellite constellations are doing phenomenal work trying to 89 00:04:16,880 --> 00:04:19,840 Speaker 4: map and identify things that are going on inside ORN. 90 00:04:19,960 --> 00:04:22,440 Speaker 4: So you've got the government's exquisite assets, and we call 91 00:04:22,480 --> 00:04:25,719 Speaker 4: them exquisite because they are the most advanced generally speaking. 92 00:04:25,960 --> 00:04:28,159 Speaker 4: They can do things like loiter over an area to 93 00:04:28,200 --> 00:04:30,280 Speaker 4: actually get continuous coverage of a space. 94 00:04:30,600 --> 00:04:32,080 Speaker 2: But then you have this huge. 95 00:04:31,800 --> 00:04:34,080 Speaker 4: Industry space where all of these actors are coming out 96 00:04:34,120 --> 00:04:37,320 Speaker 4: with really quite good information and a lot of coverage 97 00:04:37,320 --> 00:04:40,040 Speaker 4: that the government can't provide. And the combination of those 98 00:04:40,040 --> 00:04:42,279 Speaker 4: two things is going to give us great insight into 99 00:04:42,279 --> 00:04:44,560 Speaker 4: what's going on on the ground inside Iron and. 100 00:04:44,480 --> 00:04:45,920 Speaker 2: Now the market. 101 00:04:46,080 --> 00:04:48,760 Speaker 1: But most notably, the administration has to play out what 102 00:04:48,839 --> 00:04:51,320 Speaker 1: the best and the worst case scenarios potentially are here. 103 00:04:51,880 --> 00:04:54,400 Speaker 1: What from a defense tech perspective might come into play. 104 00:04:56,240 --> 00:04:57,880 Speaker 4: So they're going to have to think a lot about 105 00:04:58,120 --> 00:05:01,719 Speaker 4: defense stocks. We've talked lot about the defense industrial base 106 00:05:01,800 --> 00:05:05,040 Speaker 4: inside the US and how deep our benches basically on 107 00:05:05,040 --> 00:05:07,760 Speaker 4: some of the key weaponry that we have. Before this 108 00:05:08,240 --> 00:05:10,120 Speaker 4: round of strikes, there was a big debate inside the 109 00:05:10,120 --> 00:05:13,520 Speaker 4: administration about what you needed to preserve for a China contingency, 110 00:05:13,880 --> 00:05:15,760 Speaker 4: what you could send to Ukraine, and what you could 111 00:05:15,800 --> 00:05:19,080 Speaker 4: maintain in the Middle East. This particular operation didn't really 112 00:05:19,160 --> 00:05:21,080 Speaker 4: draw down our stocks much at all. We can pretty 113 00:05:21,080 --> 00:05:23,920 Speaker 4: easily replace what we used. But if you're looking at 114 00:05:23,960 --> 00:05:26,599 Speaker 4: more of a drawn out contingency, if Iran were to 115 00:05:26,839 --> 00:05:29,920 Speaker 4: unwisely retaliate against the US in a really dramatic way, 116 00:05:30,200 --> 00:05:32,320 Speaker 4: and you're looking at much more activity on the ground, 117 00:05:32,680 --> 00:05:34,360 Speaker 4: what you'd want to think about is do you have 118 00:05:34,400 --> 00:05:37,360 Speaker 4: the defense stocks to backfill what you're spending and can 119 00:05:37,400 --> 00:05:38,160 Speaker 4: you do it quickly? 120 00:05:38,800 --> 00:05:41,919 Speaker 1: And we have supply chain analysis from certain companies. 121 00:05:42,000 --> 00:05:43,520 Speaker 2: Yvonne is one of them. For example. 122 00:05:43,760 --> 00:05:47,440 Speaker 1: I'm interested Emily is to which is the forward looking 123 00:05:47,440 --> 00:05:50,640 Speaker 1: analysis for whether we have the manufacturing capability here in 124 00:05:50,680 --> 00:05:52,919 Speaker 1: the United States. That is something that many people have 125 00:05:52,960 --> 00:05:57,040 Speaker 1: debated about bringing that sort of expertise back to the US. 126 00:05:58,320 --> 00:06:01,039 Speaker 4: It is the key question for the next probably ten 127 00:06:01,120 --> 00:06:04,120 Speaker 4: years of deterrence against China. One has to think that 128 00:06:04,160 --> 00:06:05,880 Speaker 4: they looked at what we just did and went, oh, 129 00:06:05,880 --> 00:06:09,279 Speaker 4: the US is serious. However, any kind of modeling that 130 00:06:09,320 --> 00:06:11,960 Speaker 4: we've done of a conflict between US and China, you know, 131 00:06:12,040 --> 00:06:15,080 Speaker 4: if it were unfortunately to happen, shows that we would 132 00:06:15,160 --> 00:06:18,480 Speaker 4: run out of precision weaponry very quickly and have to 133 00:06:18,520 --> 00:06:22,760 Speaker 4: move to backfilling rapidly. With our defense industrial base, and 134 00:06:22,800 --> 00:06:25,760 Speaker 4: that involves not just manufacturing, no how, but also the. 135 00:06:25,720 --> 00:06:27,320 Speaker 5: Ability to scale up very quickly. 136 00:06:27,800 --> 00:06:29,520 Speaker 4: The US likes to think of itself in the sort 137 00:06:29,520 --> 00:06:31,760 Speaker 4: of the World War II context, where we flipped a 138 00:06:31,760 --> 00:06:33,200 Speaker 4: switch and all of a sudden there was all this, 139 00:06:33,279 --> 00:06:36,960 Speaker 4: you know, dramatic growth in American manufacturing of planes and boats. 140 00:06:37,600 --> 00:06:39,560 Speaker 4: I hate to say it, but today's F thirty five 141 00:06:39,640 --> 00:06:41,839 Speaker 4: cannot be made in a Ford factory. You have to 142 00:06:41,839 --> 00:06:45,160 Speaker 4: have much more specific kind of construction, and we really 143 00:06:45,160 --> 00:06:48,240 Speaker 4: need to think about preparing for that contingency, in part 144 00:06:48,240 --> 00:06:49,360 Speaker 4: because we hope it doesn't. 145 00:06:49,160 --> 00:06:51,479 Speaker 2: Happen, but emani actually we've seen that preparation. 146 00:06:51,600 --> 00:06:54,080 Speaker 1: It's inspired the likes of pal Maerlucky, of Tray Stevens 147 00:06:54,120 --> 00:06:55,760 Speaker 1: to go out there and build and drill because they've 148 00:06:55,760 --> 00:06:59,120 Speaker 1: been worried about how quickly we can deploy and manufacture 149 00:06:59,160 --> 00:07:02,120 Speaker 1: here in the United States. Have we seen that industrial 150 00:07:02,160 --> 00:07:05,240 Speaker 1: base thicken enough in recent years for this moment. 151 00:07:06,279 --> 00:07:09,200 Speaker 4: It has thickened, but not enough. You're absolutely right about 152 00:07:09,200 --> 00:07:11,800 Speaker 4: Palmer Lucky. Chris Brose, who also is at ANDREL, is 153 00:07:11,840 --> 00:07:14,760 Speaker 4: one of the foremost proponents of this, talking about how 154 00:07:14,960 --> 00:07:16,720 Speaker 4: we can't just depend on what we have, we have 155 00:07:16,760 --> 00:07:19,240 Speaker 4: to think about how to build I think that andrel 156 00:07:19,320 --> 00:07:21,680 Speaker 4: is leading the way in this pollunteers in a way too, 157 00:07:22,240 --> 00:07:24,000 Speaker 4: but a lot of other sort of you know, bigger 158 00:07:24,040 --> 00:07:27,200 Speaker 4: defense firms need to catch up also. I mean I 159 00:07:27,240 --> 00:07:29,040 Speaker 4: talked to these folks all the time, and what they 160 00:07:29,080 --> 00:07:31,160 Speaker 4: say is that they're not going to make these huge 161 00:07:31,160 --> 00:07:33,520 Speaker 4: capital investments if they don't have a demand signal from 162 00:07:33,520 --> 00:07:35,600 Speaker 4: the US government. So they look at the government and 163 00:07:35,640 --> 00:07:37,880 Speaker 4: they say, where's our demand signal? And the government sort 164 00:07:37,920 --> 00:07:39,880 Speaker 4: of shrugs and says, well, it's either stuck in Congress, 165 00:07:39,960 --> 00:07:41,840 Speaker 4: or it's stuck in the president's budget, or we kids 166 00:07:41,880 --> 00:07:44,480 Speaker 4: can't give it yet. And that kind of chicken egg 167 00:07:44,560 --> 00:07:46,720 Speaker 4: situation is what is keeping us from really building up 168 00:07:46,720 --> 00:07:47,400 Speaker 4: the way we need to. 169 00:07:47,720 --> 00:07:49,880 Speaker 1: So are they getting any more signal at this moment, 170 00:07:50,080 --> 00:07:52,680 Speaker 1: because it feels as though there's trying to be the words, 171 00:07:52,720 --> 00:07:54,520 Speaker 1: but what you're saying is that they need the walk, 172 00:07:54,640 --> 00:07:55,520 Speaker 1: not just the talk. 173 00:07:55,320 --> 00:07:57,640 Speaker 2: At this moment. Absolutely. 174 00:07:58,080 --> 00:07:59,800 Speaker 4: So it's nice to sit in a meeting and here, 175 00:08:00,200 --> 00:08:02,440 Speaker 4: we need to build up our defense industrial base. But 176 00:08:02,520 --> 00:08:05,560 Speaker 4: before you spend millions of dollars on a new facility 177 00:08:05,640 --> 00:08:08,320 Speaker 4: and the environmental studies and recruiting all of the talent 178 00:08:08,400 --> 00:08:11,360 Speaker 4: you need to recruit. What you want is words on paper, 179 00:08:11,600 --> 00:08:13,480 Speaker 4: the contracts or what's really going to have to come. 180 00:08:14,480 --> 00:08:18,120 Speaker 1: Is there enough money financing the startups or at least 181 00:08:18,120 --> 00:08:20,040 Speaker 1: the ecosystem to be able to put it there. Because 182 00:08:20,080 --> 00:08:22,280 Speaker 1: there are innovative ways in which we can finance the 183 00:08:22,280 --> 00:08:25,280 Speaker 1: build out from some of the legacy defense companies, not 184 00:08:25,400 --> 00:08:27,800 Speaker 1: just the bench capital companies that have been there to 185 00:08:27,840 --> 00:08:30,960 Speaker 1: foster the Andrills and Soronis and those sorts of companies. 186 00:08:32,400 --> 00:08:36,000 Speaker 4: Right, So, this year's one trillion dollar defense budget, depending 187 00:08:36,040 --> 00:08:38,360 Speaker 4: on how you measure it, was meant to do some 188 00:08:38,480 --> 00:08:41,640 Speaker 4: of that to really bolster that startup ecosystem. Plus, the 189 00:08:41,640 --> 00:08:44,559 Speaker 4: Defense Department has done some innovative things trying to create 190 00:08:44,600 --> 00:08:48,240 Speaker 4: alternative funding mechanisms for some of these smaller companies. Really, 191 00:08:48,240 --> 00:08:50,400 Speaker 4: what the tension is is that if you're not one 192 00:08:50,400 --> 00:08:53,080 Speaker 4: of the big prime defense contractors, you don't have the 193 00:08:53,200 --> 00:08:56,600 Speaker 4: multitude of lawyers and government affairs officials and people who 194 00:08:56,600 --> 00:08:59,240 Speaker 4: have run through government contracts, you know, five hundred times 195 00:08:59,679 --> 00:09:02,760 Speaker 4: to really help you break through that bureaucracy. So one 196 00:09:02,760 --> 00:09:04,319 Speaker 4: of the things that I think people are really hoping 197 00:09:04,320 --> 00:09:06,200 Speaker 4: to see out of the Trump administration is a new 198 00:09:06,240 --> 00:09:08,960 Speaker 4: way of doing business that is much more welcoming to 199 00:09:09,040 --> 00:09:11,880 Speaker 4: the tech startups and kind of the alternative defense companies, 200 00:09:12,200 --> 00:09:14,800 Speaker 4: things like Sons of and or Realmpalaneer. 201 00:09:15,640 --> 00:09:18,400 Speaker 1: So that's the technology play of which you are key 202 00:09:18,440 --> 00:09:21,000 Speaker 1: with expertise. What about the intelligence side here as well, 203 00:09:21,040 --> 00:09:23,440 Speaker 1: because are we seeing enough innovation there to be able 204 00:09:23,480 --> 00:09:25,360 Speaker 1: to decipher what the next move is for Iran? 205 00:09:26,640 --> 00:09:27,840 Speaker 2: It's never enough innovation. 206 00:09:28,400 --> 00:09:31,600 Speaker 4: So this is really an interesting moment for open source intelligence. 207 00:09:31,640 --> 00:09:33,640 Speaker 4: I grew up in the intelligence community. I grew up 208 00:09:33,679 --> 00:09:35,800 Speaker 4: believing that what we were getting on the classified side 209 00:09:35,840 --> 00:09:37,480 Speaker 4: was going to be far better than what we could 210 00:09:37,520 --> 00:09:39,680 Speaker 4: ever get on the open source side. And for a 211 00:09:39,720 --> 00:09:43,040 Speaker 4: long time that was true. But the space has really changed. 212 00:09:43,200 --> 00:09:46,440 Speaker 4: The amount of open commercially available data that's out there 213 00:09:46,440 --> 00:09:49,400 Speaker 4: in the world really can bolster and change the game 214 00:09:49,480 --> 00:09:51,800 Speaker 4: for intelligence. And there's some companies out there that are 215 00:09:51,840 --> 00:09:54,440 Speaker 4: trying to do that, that are working with AI, that 216 00:09:54,520 --> 00:09:56,880 Speaker 4: are working with huge amounts of data to try to 217 00:09:57,000 --> 00:10:00,360 Speaker 4: pull the signal out of the noise. So a moment 218 00:10:00,440 --> 00:10:02,319 Speaker 4: I think for the intelligence community to sort of be 219 00:10:02,400 --> 00:10:05,199 Speaker 4: open minded. Are there some great leaders inside the IC 220 00:10:05,559 --> 00:10:07,520 Speaker 4: right now who are working on this and working to 221 00:10:07,559 --> 00:10:10,360 Speaker 4: partner with the private sector to make the intelligence that 222 00:10:10,400 --> 00:10:13,120 Speaker 4: we collect on the classified side fit really well with 223 00:10:13,200 --> 00:10:15,880 Speaker 4: that open source intelligence, and the two together is going 224 00:10:15,920 --> 00:10:17,320 Speaker 4: to be much stronger than anything we. 225 00:10:17,360 --> 00:10:18,000 Speaker 2: Had in the past. 226 00:10:18,120 --> 00:10:20,560 Speaker 1: Be open minded on open source, Emily Harding, we love it. 227 00:10:20,760 --> 00:10:23,440 Speaker 1: Thank you from the Center of Strategic and International Studies. 228 00:10:23,720 --> 00:10:26,560 Speaker 2: Stay well. Like another story that we're watching. 229 00:10:26,320 --> 00:10:29,559 Speaker 1: Deep Seek, Well, it's assisting China's military and intelligence officials 230 00:10:29,720 --> 00:10:33,720 Speaker 1: while exploring ways to help Beijing circumvent sanctions and gain 231 00:10:33,800 --> 00:10:36,600 Speaker 1: access to advanced chips. That's all according to a Reuters 232 00:10:36,679 --> 00:10:40,000 Speaker 1: report citing a US State Department official who says that 233 00:10:40,080 --> 00:10:42,880 Speaker 1: Deep Seek was mentioned more than one hundred and fifty 234 00:10:43,040 --> 00:10:47,320 Speaker 1: times in procurement records for the military and defense affiliated entities. 235 00:10:48,360 --> 00:10:50,800 Speaker 2: Coming up, Tesla's long. 236 00:10:50,640 --> 00:10:53,720 Speaker 1: Promised driveris taxi service. It hits the road in Austin. 237 00:10:54,080 --> 00:10:57,240 Speaker 1: We'll discuss the rollout next. This is blueleg Tech. 238 00:11:06,200 --> 00:11:06,600 Speaker 2: Tesla. 239 00:11:06,800 --> 00:11:09,400 Speaker 1: It rolled out its long promise driveral as taxi service 240 00:11:09,440 --> 00:11:11,959 Speaker 1: to a handful of riders on Sunday. It was pretty 241 00:11:11,960 --> 00:11:15,160 Speaker 1: modest debut from what in OMSKS is as a transformative 242 00:11:15,280 --> 00:11:18,679 Speaker 1: new business line joining us now is Regina Klilo, CEO 243 00:11:18,840 --> 00:11:22,600 Speaker 1: and co founder of Populus is, a mobility analytics software company. Regina, 244 00:11:23,080 --> 00:11:26,840 Speaker 1: what do you make of the initial rollout, Well. 245 00:11:26,679 --> 00:11:28,959 Speaker 5: It's very exciting to have another big player in the mix. 246 00:11:29,360 --> 00:11:31,640 Speaker 6: As I'm sure many folks know, Weimo has been active 247 00:11:31,640 --> 00:11:34,280 Speaker 6: in the market for at least twenty months with commercial service, 248 00:11:34,760 --> 00:11:36,960 Speaker 6: and so it's a pretty big development to have Tesla 249 00:11:37,080 --> 00:11:39,280 Speaker 6: now delivering fully autonomous vehicle service. 250 00:11:39,880 --> 00:11:41,679 Speaker 1: Might have been a modest rollout, it's not a modest 251 00:11:41,679 --> 00:11:43,840 Speaker 1: stock move round more than ten percent. There's a lot 252 00:11:43,840 --> 00:11:46,880 Speaker 1: of hopes and prayers based on why this technology takes us. 253 00:11:46,960 --> 00:11:50,560 Speaker 1: In your mind's eye, Regina, how will we see the 254 00:11:50,640 --> 00:11:53,160 Speaker 1: roll out in Austin be picked up by other cities. 255 00:11:53,240 --> 00:11:55,160 Speaker 1: What is pressure is it putting on others in terms 256 00:11:55,200 --> 00:11:56,400 Speaker 1: of their regulatory environment. 257 00:11:57,720 --> 00:12:01,840 Speaker 6: Well, San Francisco has been an operation for over twenty months, 258 00:12:02,080 --> 00:12:06,640 Speaker 6: but Weimo then very quickly began expanding into Los Angeles, Austin, Phoenix, 259 00:12:07,480 --> 00:12:10,400 Speaker 6: Atlanta with partnerships with Uber, and they have Miami and 260 00:12:10,480 --> 00:12:14,280 Speaker 6: Washington coming up next year. And it is putting extreme 261 00:12:14,280 --> 00:12:16,360 Speaker 6: pressure on cities to really catch up and build their 262 00:12:16,360 --> 00:12:19,040 Speaker 6: digital infrastructure. So they can communicate with these vehicles and 263 00:12:19,080 --> 00:12:22,080 Speaker 6: make sure that these rollouts occur safely, because in the 264 00:12:22,080 --> 00:12:24,240 Speaker 6: case of Weymo, they've grown very very quickly in the 265 00:12:24,280 --> 00:12:25,439 Speaker 6: San Francisco market. 266 00:12:25,200 --> 00:12:28,079 Speaker 1: And populous is all about that communication, right, Just tell 267 00:12:28,160 --> 00:12:30,640 Speaker 1: us about what are the learnings, what's the experience. So 268 00:12:30,720 --> 00:12:33,880 Speaker 1: the states and the cities that are watching Austin in 269 00:12:33,920 --> 00:12:36,640 Speaker 1: particular in Texas do this, what do you think then 270 00:12:36,679 --> 00:12:38,160 Speaker 1: they need to learn what is it that Weymo and 271 00:12:38,200 --> 00:12:40,360 Speaker 1: Tesla need to do more efficiently to ensure that streets 272 00:12:40,360 --> 00:12:42,720 Speaker 1: do remain safe well. 273 00:12:42,840 --> 00:12:46,240 Speaker 6: Many cities are building digital infrastructure to begin preparing for 274 00:12:46,280 --> 00:12:49,440 Speaker 6: the future of mobility. We work with cities to help 275 00:12:49,440 --> 00:12:54,280 Speaker 6: them manage shared mobility, so micromobility, shared scooters services like 276 00:12:54,400 --> 00:12:57,760 Speaker 6: Lime and Bird they actually do need to digitally communicate 277 00:12:57,760 --> 00:13:01,280 Speaker 6: with cities, and cities can digitally communicate back. They can 278 00:13:01,280 --> 00:13:05,360 Speaker 6: share parking policies, no rite policies, and these same exact 279 00:13:05,400 --> 00:13:09,400 Speaker 6: policies are really important for services like autonomous vehicles, whether 280 00:13:09,520 --> 00:13:13,200 Speaker 6: or not there are major events occurring or protests, and 281 00:13:13,280 --> 00:13:16,640 Speaker 6: cities need to close roads for emergencies all the way 282 00:13:16,679 --> 00:13:19,400 Speaker 6: to you know, basic planning services like making sure they're 283 00:13:19,440 --> 00:13:21,040 Speaker 6: enough pickup and drop off zones in a city. 284 00:13:21,840 --> 00:13:25,280 Speaker 1: To this point, you talk about Mobility Data Specification MDS. 285 00:13:25,280 --> 00:13:28,439 Speaker 1: This is basically the establishment of open source standard that's 286 00:13:28,440 --> 00:13:31,640 Speaker 1: already in place. How quickly do you think these companies, 287 00:13:31,679 --> 00:13:33,840 Speaker 1: private companies have been willing to adopt this to be 288 00:13:33,880 --> 00:13:36,480 Speaker 1: able to share their data and get the data in return. 289 00:13:37,840 --> 00:13:41,360 Speaker 6: Well, we saw with micromobility the transition happened very very quickly. 290 00:13:41,440 --> 00:13:44,800 Speaker 6: Cities were more prepared after having experienced Uber and Lyft 291 00:13:45,640 --> 00:13:49,920 Speaker 6: in cities to put down some regulations that required mobility 292 00:13:49,960 --> 00:13:52,000 Speaker 6: operators to share data in the case of scooters. So 293 00:13:52,000 --> 00:13:53,680 Speaker 6: it happened within the course of you know, a few 294 00:13:53,679 --> 00:13:56,880 Speaker 6: months to a year. Almost every city in America and 295 00:13:56,920 --> 00:14:00,120 Speaker 6: now around the world requires data from those operators through 296 00:14:00,160 --> 00:14:04,160 Speaker 6: that Mobility Data Specification standard, and standardization makes it easy 297 00:14:04,240 --> 00:14:07,040 Speaker 6: for those large operators to then turn on data feeds 298 00:14:07,679 --> 00:14:11,160 Speaker 6: in cities from Redwood City all the way to New 299 00:14:11,200 --> 00:14:14,360 Speaker 6: York City. And so we delivered data through our platform 300 00:14:14,480 --> 00:14:19,120 Speaker 6: using that data standard and with larger operators like Uber, 301 00:14:19,240 --> 00:14:22,000 Speaker 6: lyftwaimos have a little bit more resistance. But what we've 302 00:14:22,000 --> 00:14:25,720 Speaker 6: seen is that when cities have put down policies that 303 00:14:26,080 --> 00:14:30,640 Speaker 6: require that data sharing. They are often able to get 304 00:14:30,680 --> 00:14:33,800 Speaker 6: operators to comply. Maybe there are some battles here and 305 00:14:33,840 --> 00:14:37,960 Speaker 6: there with states in terms of who's in charge, but 306 00:14:38,520 --> 00:14:41,320 Speaker 6: we've seen cities prevail on that front in terms of 307 00:14:41,360 --> 00:14:42,880 Speaker 6: data sharing and the sharing mobility space. 308 00:14:42,920 --> 00:14:44,600 Speaker 1: So it's kind of their having to deploy the stick 309 00:14:44,720 --> 00:14:47,280 Speaker 1: attitude here rather than the carrot of saying like, here's 310 00:14:47,280 --> 00:14:48,640 Speaker 1: the rules and regulations for you to. 311 00:14:48,560 --> 00:14:50,480 Speaker 2: Ascribe by, but talk us through the carrot. 312 00:14:50,560 --> 00:14:53,120 Speaker 1: Because these companies will glean a lot if they get 313 00:14:53,120 --> 00:14:54,640 Speaker 1: the data back from the city right. 314 00:14:55,840 --> 00:14:57,440 Speaker 5: Well, they'll gain to a couple of things. 315 00:14:57,520 --> 00:15:00,560 Speaker 6: One, they'll be able to operate more efficiently if cities 316 00:15:00,600 --> 00:15:02,760 Speaker 6: are able to then carve off the space that they 317 00:15:02,800 --> 00:15:06,200 Speaker 6: need in order to do really efficient pickups and drop offs. 318 00:15:06,200 --> 00:15:08,920 Speaker 5: We've seen, for example, with a surge of delivery. 319 00:15:08,880 --> 00:15:11,920 Speaker 6: You have ups and FedEx trucks that really don't have 320 00:15:11,960 --> 00:15:14,160 Speaker 6: the space that they need for the volume of delivery 321 00:15:14,160 --> 00:15:18,040 Speaker 6: that we experience in cities, and it's very difficult, I 322 00:15:18,080 --> 00:15:20,120 Speaker 6: believe you know. There are a lot of conversations around 323 00:15:20,160 --> 00:15:24,360 Speaker 6: bureaucracy and how governments can sometimes move slowly. It's really 324 00:15:24,360 --> 00:15:26,320 Speaker 6: important for cities to be able to have data in 325 00:15:26,400 --> 00:15:28,520 Speaker 6: order to facilitate making change more quickly. 326 00:15:29,240 --> 00:15:31,600 Speaker 5: And we've seen when operators share. 327 00:15:31,520 --> 00:15:34,400 Speaker 6: Data with cities, cities are able then to respond much 328 00:15:34,400 --> 00:15:37,440 Speaker 6: more quickly to create the space that they need to 329 00:15:37,480 --> 00:15:38,680 Speaker 6: run efficient services. 330 00:15:38,800 --> 00:15:41,120 Speaker 1: I mean mobility is slowly, slowly, then all at once. 331 00:15:41,160 --> 00:15:43,000 Speaker 1: I mean it's extraordinary to think how we all have 332 00:15:43,040 --> 00:15:45,920 Speaker 1: access to an electric bikeron electric scooter now most cities 333 00:15:45,920 --> 00:15:47,880 Speaker 1: in the way from which we sort of expanded the 334 00:15:47,920 --> 00:15:50,440 Speaker 1: catchment areas. How quickly do you think that adoption will 335 00:15:50,440 --> 00:15:53,040 Speaker 1: be replicated when it comes to actually not having someone 336 00:15:53,120 --> 00:15:55,720 Speaker 1: in the front of the car and steering a vehicle. 337 00:15:57,440 --> 00:15:59,760 Speaker 6: The growth of Weymo in San Francisco has been pretty 338 00:15:59,760 --> 00:16:03,280 Speaker 6: inc ardible. They only launch to their widespread commercial service 339 00:16:03,320 --> 00:16:06,000 Speaker 6: that anyone could sign up for about eighteen months ago, 340 00:16:06,160 --> 00:16:08,360 Speaker 6: and now they have more than twenty seven percent of 341 00:16:08,400 --> 00:16:08,840 Speaker 6: the market. 342 00:16:09,040 --> 00:16:12,120 Speaker 5: So they've already passed Lifts, one of the earlier players 343 00:16:12,120 --> 00:16:12,640 Speaker 5: in the space. 344 00:16:13,520 --> 00:16:16,480 Speaker 6: And so I would anticipate that we'll see similar rapid 345 00:16:16,520 --> 00:16:20,760 Speaker 6: adoption of other av services in other cities because people 346 00:16:20,960 --> 00:16:23,680 Speaker 6: enjoy the service. Some data shows that people are willing 347 00:16:23,720 --> 00:16:25,880 Speaker 6: to pay over twenty dollars an hour for a Weimo 348 00:16:26,080 --> 00:16:29,640 Speaker 6: versus just over fifteen dollars for an uber. So I 349 00:16:29,720 --> 00:16:32,800 Speaker 6: expect we'll see pretty rapid adoption in other major metros 350 00:16:32,840 --> 00:16:33,360 Speaker 6: as well. 351 00:16:33,240 --> 00:16:35,280 Speaker 1: Because we get a humanous price point a full dollars 352 00:16:35,320 --> 00:16:37,520 Speaker 1: twenty coming from you know, Musk company. 353 00:16:37,760 --> 00:16:39,760 Speaker 2: How do things differ with Tesla. 354 00:16:41,560 --> 00:16:44,280 Speaker 5: Well, I think that you know Tesla is catching up 355 00:16:44,880 --> 00:16:45,600 Speaker 5: on that front. 356 00:16:45,640 --> 00:16:48,560 Speaker 6: So they do have a brand that's interesting, and so 357 00:16:48,600 --> 00:16:53,480 Speaker 6: there are definitely people who really enjoy that experience who 358 00:16:53,520 --> 00:16:56,360 Speaker 6: have been I Heard customers for a while, and so 359 00:16:56,640 --> 00:16:59,480 Speaker 6: we'll see how how their rollout is different from Weimo's 360 00:17:00,400 --> 00:17:01,640 Speaker 6: and how quickly they're able to grow. 361 00:17:02,120 --> 00:17:04,320 Speaker 1: It's been great speaking with you, Regina Klilo, Thanks so 362 00:17:04,440 --> 00:17:07,040 Speaker 1: much for your time. The CEO of Populace, It is 363 00:17:07,080 --> 00:17:08,520 Speaker 1: time now for talking tech. 364 00:17:09,119 --> 00:17:10,919 Speaker 2: First up, open ai has. 365 00:17:10,800 --> 00:17:13,760 Speaker 1: Removed details of its deal with former Apple designer Johnny 366 00:17:13,760 --> 00:17:16,560 Speaker 1: Eyes from the web over a trademark dispute. Now, the 367 00:17:16,600 --> 00:17:18,719 Speaker 1: six and a half billion dollar acquisition of I's startup 368 00:17:18,760 --> 00:17:21,640 Speaker 1: called io Products is meant to help the chatchubt make 369 00:17:21,640 --> 00:17:23,120 Speaker 1: a move into AI devices. 370 00:17:23,280 --> 00:17:25,000 Speaker 2: A judge temporarily blocked. 371 00:17:24,720 --> 00:17:28,120 Speaker 1: Open ai from using the io Moniker after a wearable 372 00:17:28,119 --> 00:17:31,920 Speaker 1: audio device maker accused it of trademark infringement plus tech 373 00:17:31,960 --> 00:17:34,640 Speaker 1: investor process where What did a profit for the first time. 374 00:17:34,880 --> 00:17:37,639 Speaker 1: Under its new CEO, the company has acquired businesses including 375 00:17:37,720 --> 00:17:41,640 Speaker 1: online travel firm that Dispago and food delivery business Just Eat, 376 00:17:42,000 --> 00:17:45,560 Speaker 1: with an eye toward building out large e commerce platforms. 377 00:17:45,840 --> 00:17:49,080 Speaker 1: And Chinese tech giant Shaomi will be releasing a host 378 00:17:49,240 --> 00:17:51,879 Speaker 1: of new products and an event later this month. They 379 00:17:51,920 --> 00:17:55,680 Speaker 1: include a tablet powered by self developed O one chip 380 00:17:55,960 --> 00:17:58,639 Speaker 1: and its first suv. Pricing for the new vehicle, the 381 00:17:58,960 --> 00:18:01,200 Speaker 1: Yu seven is also supposed. 382 00:18:00,800 --> 00:18:01,960 Speaker 2: To be released at the event. 383 00:18:08,119 --> 00:18:10,280 Speaker 1: Welcome back to Blue meg Tech and Caroine Hide in 384 00:18:10,320 --> 00:18:12,520 Speaker 1: New York. Let's get your check on these markets because 385 00:18:12,680 --> 00:18:16,040 Speaker 1: the geopolitical anxiety is starting back just a little bit. 386 00:18:16,320 --> 00:18:19,320 Speaker 1: We're still all focused on Israel, Iran and of course 387 00:18:19,440 --> 00:18:21,880 Speaker 1: what occurred over the course of the weekend as US 388 00:18:21,920 --> 00:18:23,879 Speaker 1: struck those three sites in Iran. 389 00:18:24,080 --> 00:18:24,560 Speaker 2: We're seeing that. 390 00:18:24,600 --> 00:18:26,879 Speaker 1: We're bounced back in stocks are up by five tens percent, 391 00:18:27,200 --> 00:18:29,160 Speaker 1: and I want to dig into some of the individual. 392 00:18:28,760 --> 00:18:29,360 Speaker 2: Moves in a moment. 393 00:18:29,440 --> 00:18:31,560 Speaker 1: But Bitcoin as well looking more like a proxy for 394 00:18:31,880 --> 00:18:34,240 Speaker 1: well some stability rather than risk a version. Over the 395 00:18:34,280 --> 00:18:35,840 Speaker 1: course of the weekend, we saw some of the old 396 00:18:35,920 --> 00:18:39,040 Speaker 1: coins perform much worse than Bitcoin renown our one oh 397 00:18:39,080 --> 00:18:41,639 Speaker 1: one thousand level. I'm looking at what's happening for the 398 00:18:41,720 --> 00:18:44,560 Speaker 1: individual names though, and Palo Alto Networks up more than 399 00:18:44,560 --> 00:18:47,600 Speaker 1: a percentage point. I'm looking also at checkpoint why, because 400 00:18:47,600 --> 00:18:50,920 Speaker 1: we're thinking about the cyber implications here after the US 401 00:18:50,960 --> 00:18:54,120 Speaker 1: attack on Iran and what's happening between Israel and ram More. Generally, 402 00:18:54,480 --> 00:18:57,040 Speaker 1: US officials are in fact issuing a warning to businesses 403 00:18:57,240 --> 00:19:00,639 Speaker 1: to brace the potential cyber attacks from Iran. This following 404 00:19:00,720 --> 00:19:03,240 Speaker 1: US air strikes that we saw the country's nuclear facilities 405 00:19:03,280 --> 00:19:06,560 Speaker 1: really be targeted. Lumergs, Patrick how O'Neil joins us some 406 00:19:06,640 --> 00:19:09,600 Speaker 1: more and Patrick, some of the names that we're highlighted 407 00:19:09,640 --> 00:19:12,399 Speaker 1: are on the higher side because people are thinking company 408 00:19:12,440 --> 00:19:13,480 Speaker 1: is going to have to double down. 409 00:19:13,359 --> 00:19:16,040 Speaker 2: Here, that's right. 410 00:19:16,119 --> 00:19:18,960 Speaker 7: So the Department of Homeland Security issued a warning over 411 00:19:19,000 --> 00:19:21,320 Speaker 7: the weekend that US companies are going to have to 412 00:19:21,359 --> 00:19:24,440 Speaker 7: watch out for Irani and cyberactivity. But I think one 413 00:19:24,480 --> 00:19:27,760 Speaker 7: important note here to make is that they specifically emphasize 414 00:19:27,760 --> 00:19:30,800 Speaker 7: that it would be quote low level activity. And the 415 00:19:30,880 --> 00:19:33,560 Speaker 7: key there is that this is a thread actor who's 416 00:19:33,600 --> 00:19:38,320 Speaker 7: been prolific and brazen, but not particularly sophisticated, And so 417 00:19:38,359 --> 00:19:40,440 Speaker 7: it really speaks to the kind of level of a 418 00:19:40,440 --> 00:19:43,560 Speaker 7: thread and the specific things that US companies and organizations 419 00:19:43,560 --> 00:19:45,159 Speaker 7: and individuals are going to have to be looking out for. 420 00:19:45,760 --> 00:19:48,560 Speaker 1: So perhaps not that sophisticated. Perhaps the bark is worse 421 00:19:48,600 --> 00:19:52,119 Speaker 1: than the bite. But Iran has primarily targeted who in 422 00:19:52,160 --> 00:19:53,040 Speaker 1: the past. 423 00:19:55,040 --> 00:19:57,760 Speaker 7: Well, the real answer to that would be Israel. There's 424 00:19:57,800 --> 00:20:01,439 Speaker 7: been incredible amount of Israel aro on cyberactivity over the 425 00:20:01,520 --> 00:20:05,880 Speaker 7: years back and forth. But in the US there's been 426 00:20:05,880 --> 00:20:09,639 Speaker 7: a long history of Iranian cyberactivity of varying levels. They've 427 00:20:09,800 --> 00:20:14,200 Speaker 7: targeted famously, they targeted US financial institutions about ten. 428 00:20:14,119 --> 00:20:14,840 Speaker 2: Or fifteen years ago. 429 00:20:14,880 --> 00:20:17,200 Speaker 7: They were able to get some top Wall Street banks 430 00:20:17,880 --> 00:20:22,000 Speaker 7: off the Internet. They've also targeted individuals that they deem 431 00:20:22,080 --> 00:20:25,560 Speaker 7: to be enemies of the regime. They've done defacements, they've 432 00:20:25,560 --> 00:20:29,040 Speaker 7: done ransomware. So it's a wide gamut of targets and 433 00:20:29,119 --> 00:20:31,240 Speaker 7: a lot of it is about the psychological impact. A 434 00:20:31,280 --> 00:20:35,360 Speaker 7: lot of it is about looking powerful intimidation rather than 435 00:20:35,560 --> 00:20:39,199 Speaker 7: a real demonstrable impact. In many cases, and. 436 00:20:39,200 --> 00:20:42,120 Speaker 1: I imagine defense contractors, government bodies right now are really 437 00:20:42,119 --> 00:20:46,480 Speaker 1: bracing themselves, Patrick, But what has also been demonstrated is 438 00:20:46,520 --> 00:20:49,760 Speaker 1: the impact that Israel has had on Iran in terms 439 00:20:49,800 --> 00:20:50,720 Speaker 1: of cyber as well. 440 00:20:50,760 --> 00:20:52,720 Speaker 2: What have we've seen over the last few weeks. 441 00:20:54,320 --> 00:20:57,400 Speaker 7: It's been really interesting. So to describe what we've seen, 442 00:20:57,440 --> 00:21:00,280 Speaker 7: we have to preface it with the potentially obvious that 443 00:21:00,320 --> 00:21:03,040 Speaker 7: there is a really significant fog of war right now, 444 00:21:03,080 --> 00:21:07,680 Speaker 7: so we're still doing our best to understand. But most notably, 445 00:21:08,200 --> 00:21:11,680 Speaker 7: there is a group called Predatory Sparrow, and it maintains 446 00:21:11,760 --> 00:21:15,320 Speaker 7: this image of a activist, activist group, but it's been 447 00:21:15,359 --> 00:21:18,679 Speaker 7: engaged in some really high profile activity. It's taken a 448 00:21:18,840 --> 00:21:23,600 Speaker 7: huge Iranian bank offline because of alleged links to the IRGC, 449 00:21:23,760 --> 00:21:27,800 Speaker 7: the Republican Guard. It's essentially burned tens of millions of 450 00:21:27,840 --> 00:21:31,840 Speaker 7: dollars in crypto from a major Iranian crypto exchange, again 451 00:21:32,000 --> 00:21:36,199 Speaker 7: because of links to evading sanctions. And it's all really 452 00:21:36,240 --> 00:21:39,439 Speaker 7: been in the effort of having a psychological impact. 453 00:21:39,480 --> 00:21:39,720 Speaker 2: Again. 454 00:21:39,760 --> 00:21:42,399 Speaker 7: I mean, don't get me wrong, the financial impact is significant, 455 00:21:42,880 --> 00:21:45,639 Speaker 7: but I think it's about in their case, showcasing that 456 00:21:45,680 --> 00:21:48,720 Speaker 7: the emperor has no clothes in this case, and that Israel, 457 00:21:49,119 --> 00:21:53,159 Speaker 7: this group that most experts say is aligned with Israel 458 00:21:53,240 --> 00:21:56,000 Speaker 7: is really able to operate freely during this conflict. 459 00:21:56,600 --> 00:21:59,840 Speaker 1: Fascinating, Patrick Howl O'Neil do come back, Thanks so much, 460 00:22:00,359 --> 00:22:02,600 Speaker 1: and let's just stick with defense tech more broadly now. 461 00:22:02,680 --> 00:22:05,600 Speaker 1: Marlin Spike is a notable VC investor in the sector, 462 00:22:05,720 --> 00:22:09,160 Speaker 1: backing companies such as Palenteers, Shield Ai Andre Will Marlin 463 00:22:09,240 --> 00:22:11,119 Speaker 1: Spike CEO Keegan joins us. 464 00:22:11,160 --> 00:22:12,800 Speaker 2: Now, look, you've been in this game a long time. 465 00:22:12,840 --> 00:22:15,199 Speaker 1: What is it since twenty twenty, I've been backing some 466 00:22:15,280 --> 00:22:19,480 Speaker 1: of these names. Palenteer's near a record high today, So congratulations. 467 00:22:20,240 --> 00:22:22,280 Speaker 1: What are we seeing in terms of the rest of 468 00:22:22,320 --> 00:22:24,160 Speaker 1: the VC industry following your lead? 469 00:22:25,320 --> 00:22:25,560 Speaker 7: Sure? 470 00:22:25,600 --> 00:22:27,720 Speaker 8: Well, first of all, thank you very much for having me, Caroline. 471 00:22:27,720 --> 00:22:29,959 Speaker 8: It's an honored bey on Bloomberg, particularly on a day 472 00:22:30,000 --> 00:22:31,840 Speaker 8: where there's a lot more green than red on the screen. 473 00:22:32,480 --> 00:22:36,080 Speaker 8: So what we're seeing, particularly as it relates to defense 474 00:22:36,119 --> 00:22:38,800 Speaker 8: technology and dual use, which is where we spend our 475 00:22:38,800 --> 00:22:42,800 Speaker 8: time investing, We're looking for very disruptive companies that can 476 00:22:42,800 --> 00:22:45,240 Speaker 8: make an impact on our industrial base. I mean, we're 477 00:22:45,280 --> 00:22:48,960 Speaker 8: here to build with these hygro technology companies the most 478 00:22:49,080 --> 00:22:52,200 Speaker 8: robust and durable industrial base that we can, and as 479 00:22:52,240 --> 00:22:55,520 Speaker 8: it relates to Iran, look, this is a long time 480 00:22:55,520 --> 00:22:58,919 Speaker 8: common for this strike and we've significantly degraded their capabilities. 481 00:22:58,960 --> 00:23:01,040 Speaker 8: But I think it highlights that that, you know, a 482 00:23:01,080 --> 00:23:04,680 Speaker 8: country like Iran and some of our other competitors are 483 00:23:04,680 --> 00:23:06,439 Speaker 8: not going to come at us in traditional ways. We 484 00:23:06,480 --> 00:23:09,119 Speaker 8: need to be ready for asymmetric threats and that is 485 00:23:09,200 --> 00:23:11,720 Speaker 8: one of the real goals for where we're investing and 486 00:23:11,800 --> 00:23:15,800 Speaker 8: looking for companies that can not suffer a failure of imagination. 487 00:23:15,960 --> 00:23:18,760 Speaker 8: After nine to eleven, we need to focus on all 488 00:23:18,760 --> 00:23:21,159 Speaker 8: the tools that we have at hand in terms of AI, 489 00:23:21,440 --> 00:23:24,960 Speaker 8: autonomous systems and advanced manufacturing. These are the new companies 490 00:23:25,040 --> 00:23:27,040 Speaker 8: that are going to work in concert with some of 491 00:23:27,119 --> 00:23:29,320 Speaker 8: the great defense companies that we have that produce our 492 00:23:29,359 --> 00:23:32,159 Speaker 8: exquisite capital systems that we actually saw on display over the. 493 00:23:32,160 --> 00:23:36,200 Speaker 2: Weekend working concert. Is that happening more at the moment. 494 00:23:35,960 --> 00:23:40,600 Speaker 8: Neil, absolutely, and first of all, hats off to our 495 00:23:40,680 --> 00:23:45,119 Speaker 8: brave men and women that plan this decisive strike. There 496 00:23:45,200 --> 00:23:47,520 Speaker 8: was a lot of thought and coordination that went into this, 497 00:23:48,480 --> 00:23:51,120 Speaker 8: and I like to paraphrase you know Admiral Palparo, who 498 00:23:51,160 --> 00:23:53,320 Speaker 8: likes to say we need not only the will, but 499 00:23:53,400 --> 00:23:57,280 Speaker 8: the capability, and I think we demonstrated both with a 500 00:23:57,320 --> 00:24:01,320 Speaker 8: high degree of success on Saturday evening. I do see, 501 00:24:01,440 --> 00:24:04,320 Speaker 8: or we do see from our team, more coordination with 502 00:24:04,560 --> 00:24:08,720 Speaker 8: the large legacy primes and really the new you can 503 00:24:08,720 --> 00:24:10,679 Speaker 8: call them new kids in the block, but companies like 504 00:24:10,680 --> 00:24:14,040 Speaker 8: SpaceX and Palneer have been around for over twenty years. 505 00:24:14,359 --> 00:24:16,760 Speaker 8: And what I think is really fascinating is we're seeing 506 00:24:17,400 --> 00:24:20,879 Speaker 8: a very open tie up between these market leaders to 507 00:24:21,040 --> 00:24:25,080 Speaker 8: work together so we can effectively renew freedoms Forwards two 508 00:24:25,119 --> 00:24:27,879 Speaker 8: point zero, which is the coming together of the public 509 00:24:27,920 --> 00:24:31,480 Speaker 8: and the private markets to defend America in our allies, 510 00:24:31,480 --> 00:24:33,720 Speaker 8: so we can be ready with the best possible tech 511 00:24:33,920 --> 00:24:36,280 Speaker 8: to give it to our war fighters and an intelligence community. 512 00:24:36,720 --> 00:24:39,800 Speaker 1: Neil, it's interesting you say the intelligence community. We do understand. Still, 513 00:24:39,880 --> 00:24:43,640 Speaker 1: really a battle damage assessment is needed to show clarity 514 00:24:43,640 --> 00:24:45,439 Speaker 1: of the effectiveness of what happened over the course of 515 00:24:45,440 --> 00:24:47,919 Speaker 1: the weekend. We started this conversation this show with the 516 00:24:47,920 --> 00:24:51,680 Speaker 1: csis Emily Harding on the show really talking about how 517 00:24:51,760 --> 00:24:54,920 Speaker 1: now intelligence can be an area of innovation and of fostering. 518 00:24:54,960 --> 00:24:56,560 Speaker 2: Is that something you've been looking at? How is AI 519 00:24:56,680 --> 00:24:57,440 Speaker 2: changing that game? 520 00:24:58,960 --> 00:25:02,280 Speaker 8: Sure is and it's an integrated part. I mean you mentioned, 521 00:25:02,320 --> 00:25:05,880 Speaker 8: you know, Palneer Palenteer was really formed in the wake 522 00:25:05,920 --> 00:25:08,680 Speaker 8: of nine to eleven. They were an early Inky Tel investment. 523 00:25:08,920 --> 00:25:10,800 Speaker 8: Ink you tell, as you and a lot of your 524 00:25:10,840 --> 00:25:13,680 Speaker 8: viewers may know, has been investing in the intelligence community 525 00:25:13,680 --> 00:25:16,160 Speaker 8: on behalf of our country for over twenty five years. 526 00:25:16,359 --> 00:25:18,879 Speaker 8: This is a group that we're very close to. We 527 00:25:19,400 --> 00:25:22,840 Speaker 8: understand their return on mission. You know, we're also in 528 00:25:22,880 --> 00:25:25,720 Speaker 8: this to make great returns for our investors, but it's 529 00:25:25,840 --> 00:25:28,560 Speaker 8: very important that these groups, you know, work handing glove together. 530 00:25:28,600 --> 00:25:30,960 Speaker 8: And I see that happening more and more and more, 531 00:25:31,280 --> 00:25:33,439 Speaker 8: and that's a great thing, not only at the at 532 00:25:33,440 --> 00:25:36,719 Speaker 8: the later stage where these companies have really blossomed and 533 00:25:36,760 --> 00:25:41,679 Speaker 8: they've got product market fit, growing revenues, getting major contracts, 534 00:25:41,840 --> 00:25:43,879 Speaker 8: but also on the earlier stage. You know, we're very 535 00:25:43,920 --> 00:25:46,680 Speaker 8: excited to see that. It seems like almost every day 536 00:25:46,800 --> 00:25:49,600 Speaker 8: there are bright young men and women that are leaving 537 00:25:49,640 --> 00:25:53,920 Speaker 8: great companies like Tesla and Androl and Palneer and space Act, 538 00:25:54,000 --> 00:25:57,160 Speaker 8: and they're starting new companies with new capabilities, and we're 539 00:25:57,200 --> 00:25:59,159 Speaker 8: excited to spend time with them and to back them 540 00:25:59,160 --> 00:26:00,520 Speaker 8: in the earlier stages. As well. 541 00:26:01,119 --> 00:26:05,040 Speaker 1: What's interesting is we're still perhaps wondering what the key 542 00:26:05,080 --> 00:26:08,439 Speaker 1: buy signal is here for yet more contracts, Neil. We 543 00:26:08,520 --> 00:26:10,840 Speaker 1: keep saying the same names time and time again, Pal 544 00:26:10,920 --> 00:26:13,800 Speaker 1: Andeer Andrel because they have made such moves they have 545 00:26:13,960 --> 00:26:17,080 Speaker 1: managed to intertwine themselves with the administration and get more contracts. 546 00:26:17,119 --> 00:26:19,840 Speaker 1: But is that going broader? Because Emily Hardening at the 547 00:26:19,880 --> 00:26:21,840 Speaker 1: top of the show was sort about lning that there's 548 00:26:21,840 --> 00:26:24,600 Speaker 1: a lot of talk about allocating funds towards these startups, 549 00:26:24,600 --> 00:26:25,840 Speaker 1: but sometimes not enough walk. 550 00:26:27,760 --> 00:26:30,080 Speaker 8: I would say that's a fair assessment, and I want 551 00:26:30,080 --> 00:26:32,840 Speaker 8: to be labor the Valley of Death comment. In our space, 552 00:26:33,240 --> 00:26:35,600 Speaker 8: there's been a lot written about that we must change 553 00:26:36,160 --> 00:26:38,480 Speaker 8: what we buy, how we buy it, and get new 554 00:26:38,520 --> 00:26:41,679 Speaker 8: technology with a lot of the newer entrance in the 555 00:26:41,720 --> 00:26:45,840 Speaker 8: space to the warfighter, and thankfully that is happening in 556 00:26:45,920 --> 00:26:48,840 Speaker 8: our Vieu's not happening fast enough, but there are pockets 557 00:26:48,880 --> 00:26:51,760 Speaker 8: of opportunity. I think Golden Dome is going to be 558 00:26:51,840 --> 00:26:55,359 Speaker 8: a really good example. We're very pleased to see the 559 00:26:55,400 --> 00:26:58,119 Speaker 8: new energy around this because I think this is something 560 00:26:58,160 --> 00:27:01,679 Speaker 8: that is much bigger than just counter defenses. This is 561 00:27:01,720 --> 00:27:05,720 Speaker 8: an integrated, layered system, both at home and abroad. It's 562 00:27:05,760 --> 00:27:10,119 Speaker 8: going to involve very exquisite programs but also asymmetric defense. Again, 563 00:27:10,320 --> 00:27:12,280 Speaker 8: I said it before and I'll see it again. We 564 00:27:12,320 --> 00:27:16,439 Speaker 8: can't failure the lack of imagination after nine to eleven, 565 00:27:16,640 --> 00:27:18,360 Speaker 8: so we need to be very creative as it comes 566 00:27:18,440 --> 00:27:23,200 Speaker 8: to homeland defense, securing our border, critical infrastructure, cyber capital 567 00:27:23,240 --> 00:27:26,520 Speaker 8: markets and some of these newer, more innovative companies are 568 00:27:26,560 --> 00:27:28,920 Speaker 8: going after this, and I think they've got a real 569 00:27:29,000 --> 00:27:32,200 Speaker 8: role to play in concert with the large legacy primes 570 00:27:32,480 --> 00:27:35,320 Speaker 8: as well as the new market leaders like Androl and 571 00:27:35,359 --> 00:27:36,480 Speaker 8: Poundteer Neil. 572 00:27:36,560 --> 00:27:39,440 Speaker 2: I like the way you said there's new energy. There 573 00:27:39,480 --> 00:27:40,560 Speaker 2: is new energy. 574 00:27:40,280 --> 00:27:43,840 Speaker 1: Around well defense tech investing more broadly, far more vcs 575 00:27:43,840 --> 00:27:46,560 Speaker 1: getting in on it, but far more big tech company 576 00:27:46,600 --> 00:27:48,480 Speaker 1: is willing to go there. I think meta and an 577 00:27:48,560 --> 00:27:51,520 Speaker 1: error relationship that they're now having with Andrew, you're thinking 578 00:27:51,640 --> 00:27:54,199 Speaker 1: of the relationship that we're seeing Google now redeploying and 579 00:27:54,240 --> 00:27:56,040 Speaker 1: focusing on military applications. 580 00:27:56,320 --> 00:27:57,359 Speaker 2: Has that taken by surprise? 581 00:27:57,359 --> 00:28:00,160 Speaker 1: As someone who's been working on this intersection since twenty twenty. 582 00:28:01,480 --> 00:28:03,480 Speaker 8: I wouldn't say it's taken me by surprise or our 583 00:28:03,480 --> 00:28:05,720 Speaker 8: team by surprise. I mean, our team has been in 584 00:28:05,760 --> 00:28:08,439 Speaker 8: this space a long time. You know, my background, I 585 00:28:08,520 --> 00:28:11,240 Speaker 8: was a Naval Academy graduate or naval officer, was actually 586 00:28:11,960 --> 00:28:14,040 Speaker 8: in the Arabian golf in the in the late nineties, 587 00:28:14,040 --> 00:28:15,919 Speaker 8: going through the straits of Horror Mouz. So you know, 588 00:28:16,160 --> 00:28:18,760 Speaker 8: we were ready. We were ready then and as we're 589 00:28:18,840 --> 00:28:20,720 Speaker 8: ready now, and we need to continue to be ready 590 00:28:20,920 --> 00:28:23,280 Speaker 8: for these asymmetric threats. And I think this is where 591 00:28:24,000 --> 00:28:26,960 Speaker 8: you know, we're going to shine. And I'm actually very 592 00:28:27,000 --> 00:28:30,919 Speaker 8: pleased and gratified to see this continued, not only public recognition, 593 00:28:31,040 --> 00:28:34,320 Speaker 8: but having the private sector really stepped into this. And 594 00:28:34,400 --> 00:28:36,159 Speaker 8: I think a lot of the tech leaders back in 595 00:28:36,200 --> 00:28:39,479 Speaker 8: the late teams, you know, I think again Andrell, you know, 596 00:28:40,160 --> 00:28:42,960 Speaker 8: is a great example where you know, this is private capital. 597 00:28:43,040 --> 00:28:46,080 Speaker 8: These are founders. These are folks that are very tech 598 00:28:46,160 --> 00:28:49,200 Speaker 8: savvy that they took a risk, they've built a great company, 599 00:28:49,280 --> 00:28:51,600 Speaker 8: and then now more have followed. So I think that's 600 00:28:51,640 --> 00:28:54,440 Speaker 8: going to be a continued trend. And again there are 601 00:28:54,560 --> 00:28:57,760 Speaker 8: more entrants in the defense tech dual use investing space, 602 00:28:57,960 --> 00:29:00,680 Speaker 8: and that's a good thing. We need that we are 603 00:29:00,680 --> 00:29:04,120 Speaker 8: our missions driven, we co invest together, we share ideas, 604 00:29:04,400 --> 00:29:06,800 Speaker 8: and at the bottom line is you know, we're in 605 00:29:06,800 --> 00:29:10,280 Speaker 8: this not only for profit, but also for purpose and 606 00:29:10,320 --> 00:29:12,880 Speaker 8: that's the mission mindset I see of our cohort in 607 00:29:12,880 --> 00:29:13,280 Speaker 8: this space. 608 00:29:13,520 --> 00:29:15,560 Speaker 1: Well, we take note that you've invested in twenty five 609 00:29:15,600 --> 00:29:18,160 Speaker 1: companies so far and some of the leading names that 610 00:29:18,200 --> 00:29:20,360 Speaker 1: have stood out in defense tech. So, Neil Keegan, we 611 00:29:20,400 --> 00:29:22,800 Speaker 1: listen to you with Marlin Spike, thanks so much for joining. 612 00:29:23,360 --> 00:29:26,440 Speaker 1: Coming up, Thank you CenTra Systems. It aims to modernize 613 00:29:26,480 --> 00:29:28,720 Speaker 1: the way a key component in aerospace and defense tech 614 00:29:28,840 --> 00:29:32,000 Speaker 1: is made. We speak with CenTra system CEO John and Black. Next, 615 00:29:32,320 --> 00:29:44,600 Speaker 1: this is a Bloomberg Tech. We have some breaking news 616 00:29:44,680 --> 00:29:46,480 Speaker 1: for you. Let's just take you out to Kata to 617 00:29:46,600 --> 00:29:50,200 Speaker 1: temporarily suspend traffic over its airspace. This is of course, 618 00:29:50,240 --> 00:29:54,480 Speaker 1: as anxieties have dialed up and indeed real world implications 619 00:29:54,520 --> 00:29:56,880 Speaker 1: for Iran after the attacks from the US over the 620 00:29:56,880 --> 00:29:59,520 Speaker 1: course of the weekend and Israel in Iran, the tensions 621 00:29:59,520 --> 00:30:02,640 Speaker 1: continued to foster over this weekend. We have seen notable 622 00:30:03,080 --> 00:30:06,200 Speaker 1: lack of access to Dubai for example, certain airlines British 623 00:30:06,200 --> 00:30:09,600 Speaker 1: Shareways for example, curtailing some of their flights to those destinations. 624 00:30:09,880 --> 00:30:13,320 Speaker 1: Now we understand that Kata is to temporarily suspend traffic 625 00:30:13,400 --> 00:30:14,600 Speaker 1: over its airspace. 626 00:30:14,960 --> 00:30:16,800 Speaker 2: We'll keep you up to date with all the news. 627 00:30:16,840 --> 00:30:19,480 Speaker 1: Meanwhile, CenTra Systems, I want to talk about how it's 628 00:30:19,480 --> 00:30:22,640 Speaker 1: announced it's raised twenty five million dollars in a Series 629 00:30:22,640 --> 00:30:25,960 Speaker 1: A funding round and then aim to modernize whire harnesses 630 00:30:26,320 --> 00:30:29,680 Speaker 1: using the aerospace and defense industry. Jordan Black, CenTra system 631 00:30:29,720 --> 00:30:32,160 Speaker 1: CEO and co founder, joins us. Now, congrats on the rays. 632 00:30:32,600 --> 00:30:34,800 Speaker 1: Talk to us about harnesses. What exactly is it that 633 00:30:34,840 --> 00:30:37,000 Speaker 1: you're making, What exactly is it that you feel needs 634 00:30:37,000 --> 00:30:37,720 Speaker 1: to be disrupted? 635 00:30:39,000 --> 00:30:42,080 Speaker 9: Yeah, thank you for having me so, probably don't have 636 00:30:42,160 --> 00:30:45,800 Speaker 9: too much no wire harnessing, but it's in everything. It's 637 00:30:45,840 --> 00:30:48,240 Speaker 9: in your rockets, it's in your cars, it's in your 638 00:30:48,240 --> 00:30:53,239 Speaker 9: coffee maker. It's what connects all electronic components together. Without it, 639 00:30:53,400 --> 00:30:55,760 Speaker 9: nothing would fly, nothing would run, nothing would work, nothing 640 00:30:55,760 --> 00:30:59,600 Speaker 9: would turn on. And it's an industry that hasn't changed 641 00:30:59,600 --> 00:31:03,560 Speaker 9: since the World War, mainly because it's an entirely manual 642 00:31:03,560 --> 00:31:06,960 Speaker 9: process to design it and to also manufacture it from 643 00:31:06,960 --> 00:31:11,120 Speaker 9: scratch too. It's entirely done by labor. It's fairy arts 644 00:31:11,120 --> 00:31:13,680 Speaker 9: and crafts like and it's one of those really un 645 00:31:13,720 --> 00:31:17,440 Speaker 9: sexy businesses that has just been in the US for 646 00:31:17,480 --> 00:31:20,760 Speaker 9: a while and all over the world, but we're excited 647 00:31:20,760 --> 00:31:22,360 Speaker 9: to disrupt it from starting to finish. 648 00:31:22,480 --> 00:31:23,320 Speaker 2: You found it sexy. 649 00:31:23,520 --> 00:31:25,560 Speaker 1: You went around the world when you're working with SpaceX 650 00:31:25,560 --> 00:31:28,640 Speaker 1: to go and see what really the bottlenecks were as 651 00:31:28,640 --> 00:31:31,040 Speaker 1: to why you can't scale this. So what's your answer, 652 00:31:31,040 --> 00:31:33,200 Speaker 1: how do you end up making this more automated more 653 00:31:33,280 --> 00:31:34,720 Speaker 1: quickly to replicate. 654 00:31:36,080 --> 00:31:38,960 Speaker 9: The way we believe we have to solve this thing 655 00:31:39,120 --> 00:31:42,000 Speaker 9: is that it comes both from the input and the 656 00:31:42,000 --> 00:31:43,719 Speaker 9: output side of it too. And what I mean by 657 00:31:43,760 --> 00:31:46,320 Speaker 9: that is some of the largest companies today are using 658 00:31:46,480 --> 00:31:50,880 Speaker 9: Excel spreadsheets and powerpoints slides to design their electrical wire 659 00:31:50,920 --> 00:31:54,880 Speaker 9: harnessing because there's no industry standard to actually design it 660 00:31:54,920 --> 00:31:57,200 Speaker 9: to give it to a contract manufacturer like ourselves to 661 00:31:57,240 --> 00:31:59,000 Speaker 9: build off of. And this is where they have the 662 00:31:59,040 --> 00:32:02,640 Speaker 9: back and forth and a lot of the inefficiency in 663 00:32:02,680 --> 00:32:04,920 Speaker 9: the process too. So we're creating a design tool called 664 00:32:04,960 --> 00:32:08,360 Speaker 9: AMP where anyone can pretty much design a wire harness 665 00:32:08,400 --> 00:32:12,480 Speaker 9: within minutes versus months. Then we take that data and 666 00:32:12,520 --> 00:32:15,280 Speaker 9: we send it to our manufacturing facility. So right now 667 00:32:15,280 --> 00:32:18,400 Speaker 9: the headquarters is in southern California, Redondo Beach, and we 668 00:32:18,480 --> 00:32:21,280 Speaker 9: use that data to streamline the entire process from ordering 669 00:32:21,320 --> 00:32:26,240 Speaker 9: the parts, giving work constructions, to the technicians using machines 670 00:32:26,280 --> 00:32:28,240 Speaker 9: that we either build internally or off the shelf, to 671 00:32:28,400 --> 00:32:31,120 Speaker 9: empower almost anyone to be able to build the wire 672 00:32:31,120 --> 00:32:34,320 Speaker 9: harness too. The thing that was really the biggest struggle 673 00:32:34,320 --> 00:32:37,440 Speaker 9: even at SpaceX was it would take at least twelve 674 00:32:37,480 --> 00:32:39,240 Speaker 9: months for someone to be able to be a skilled 675 00:32:39,320 --> 00:32:42,280 Speaker 9: technician to touch a wire harness that goes into a 676 00:32:42,320 --> 00:32:44,640 Speaker 9: SpaceX rocket or satellite or anything else like that. 677 00:32:45,080 --> 00:32:45,680 Speaker 2: And it's just. 678 00:32:45,640 --> 00:32:50,160 Speaker 9: This process of it hasn't changed since the Cold War, 679 00:32:50,200 --> 00:32:50,920 Speaker 9: like I mentioned too. 680 00:32:51,600 --> 00:32:54,440 Speaker 2: So you got twenty five million, Where does that go? 681 00:32:54,640 --> 00:32:57,440 Speaker 1: Because is it about ensuring that you can scale the 682 00:32:57,440 --> 00:33:00,600 Speaker 1: manufacturing the footprint You say you're in Soco, Los Angeles 683 00:33:00,640 --> 00:33:02,640 Speaker 1: as well with a factory, do you scale that out? 684 00:33:02,720 --> 00:33:04,560 Speaker 1: Is it about hiring more technicians of your own? 685 00:33:06,280 --> 00:33:06,960 Speaker 2: It's both. 686 00:33:07,000 --> 00:33:11,200 Speaker 9: It's putting more effort into our software design tool. We've 687 00:33:11,240 --> 00:33:13,960 Speaker 9: already released our beta and we have customers actively using 688 00:33:14,040 --> 00:33:16,320 Speaker 9: it too and really being able to create that industry 689 00:33:16,360 --> 00:33:18,960 Speaker 9: standard right off the bat. And then we're scaling manufacturing 690 00:33:19,000 --> 00:33:21,560 Speaker 9: we can't keep up with the demand. Two years ago 691 00:33:21,560 --> 00:33:24,320 Speaker 9: I started building wire harnesses in my apartment. A year 692 00:33:24,360 --> 00:33:27,120 Speaker 9: after that, we're in our current facility and we've already 693 00:33:27,360 --> 00:33:29,320 Speaker 9: most outgrown it, and so it's continued to keep up 694 00:33:29,360 --> 00:33:30,800 Speaker 9: with the demand as we continue to grow too. 695 00:33:30,880 --> 00:33:33,840 Speaker 1: I mean, that feels weird that you were able to 696 00:33:33,960 --> 00:33:36,680 Speaker 1: build a wire harness in your apartment from just a 697 00:33:36,680 --> 00:33:39,000 Speaker 1: regulatory perspective, I mean, Jordan, what are the sort of 698 00:33:39,000 --> 00:33:41,280 Speaker 1: boxes you have to take when you make these things? 699 00:33:42,840 --> 00:33:46,080 Speaker 9: When I started, I unfortunately my first customer wasn't a 700 00:33:46,120 --> 00:33:48,840 Speaker 9: SpaceX or a large company like that, but it was 701 00:33:49,240 --> 00:33:52,240 Speaker 9: actually a pizza automation company, and so I started with 702 00:33:52,440 --> 00:33:53,960 Speaker 9: just going to almost every startup. 703 00:33:54,880 --> 00:33:55,920 Speaker 5: Probably the third week, I. 704 00:33:55,880 --> 00:33:57,960 Speaker 9: Opened up and said, I don't care what you pay me, 705 00:33:58,080 --> 00:34:00,000 Speaker 9: I don't care what the harness is. I will just 706 00:34:00,000 --> 00:34:01,640 Speaker 9: build it for you because I want that eager to 707 00:34:01,680 --> 00:34:03,640 Speaker 9: just get my hands dirty and be able to start 708 00:34:03,640 --> 00:34:06,239 Speaker 9: this company round the scratch. But it shows also how 709 00:34:06,280 --> 00:34:08,200 Speaker 9: manual the processes that I'm able to build into my 710 00:34:08,239 --> 00:34:11,680 Speaker 9: apartment because I don't need very expensive machines or the 711 00:34:11,920 --> 00:34:14,400 Speaker 9: crazy technology to build this, and that's what the industry 712 00:34:14,440 --> 00:34:17,000 Speaker 9: needs to be able to scale out of an apartment. 713 00:34:17,400 --> 00:34:19,359 Speaker 1: When the industry is getting it not just from you, 714 00:34:19,440 --> 00:34:21,960 Speaker 1: but also from Hadrian. For example, there is now this 715 00:34:22,040 --> 00:34:25,200 Speaker 1: push for automated manufacturing here in the United States. You 716 00:34:25,320 --> 00:34:28,600 Speaker 1: share similar vcs for example Founders fund a sixteen Z 717 00:34:28,719 --> 00:34:32,440 Speaker 1: caffeinated capital. You seeing this desire come from the capital 718 00:34:32,560 --> 00:34:33,439 Speaker 1: markets right now. 719 00:34:36,360 --> 00:34:39,920 Speaker 9: It's really this push to keep up with the demand 720 00:34:40,000 --> 00:34:43,960 Speaker 9: because I think the industrial supply chain is just it's dwindling, 721 00:34:44,040 --> 00:34:46,400 Speaker 9: and there's in at least in wire harnessing, there's eight 722 00:34:46,520 --> 00:34:51,560 Speaker 9: hundred plus mom pop shops that build this and they're 723 00:34:51,640 --> 00:34:53,720 Speaker 9: struggling to scale, the struggle to keep up with demand. 724 00:34:53,880 --> 00:34:56,880 Speaker 9: And I think our customers they're emerging, such as like 725 00:34:56,920 --> 00:34:59,839 Speaker 9: the Andrels of the world, They need a supply chain 726 00:35:00,080 --> 00:35:03,520 Speaker 9: can quickly iterate that can build them high quality harnesses, faster, cheaper, 727 00:35:03,560 --> 00:35:05,719 Speaker 9: everything else on that side of it too. But I 728 00:35:05,719 --> 00:35:08,440 Speaker 9: think this is why this capital market's very excited for 729 00:35:08,480 --> 00:35:12,120 Speaker 9: this is they're not only putting their capital into some 730 00:35:12,200 --> 00:35:14,560 Speaker 9: of the new incumbents in the space like Anderid, but 731 00:35:14,640 --> 00:35:16,799 Speaker 9: also the industrial supply gen that's going to make them 732 00:35:16,800 --> 00:35:18,160 Speaker 9: successful in the long run too. 733 00:35:18,840 --> 00:35:21,640 Speaker 1: Jordan Black of Central Systems. Thanks so much for talking 734 00:35:21,680 --> 00:35:22,239 Speaker 1: about the rays. 735 00:35:22,239 --> 00:35:29,120 Speaker 2: We appreciate it. Now. 736 00:35:29,160 --> 00:35:31,200 Speaker 1: That does it for this edition of Bloomberg Tech. You 737 00:35:31,239 --> 00:35:33,919 Speaker 1: do not want to forget about our podcast. You find 738 00:35:33,960 --> 00:35:36,640 Speaker 1: it on the terminal as well as online on Apple, Spotify, 739 00:35:36,680 --> 00:35:38,439 Speaker 1: and iHeart from New York. 740 00:35:38,920 --> 00:35:39,799 Speaker 2: This is bloombag Tech