WEBVTT - OpenAI Pushes for Policies to Offset AI’s Impact 0:00:02.520 --> 0:00:13.720 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is alive 0:00:13.720 --> 0:00:17.560 from coast to coast with Caroline Hyde in New York 0:00:17.840 --> 0:00:19.759 and Eva low In sent Francesco. 0:00:23.480 --> 0:00:25.080 This is Bloomberg Tech coming up. 0:00:25.079 --> 0:00:28.680 Open AI releases a slew of policy recommendations to help 0:00:28.760 --> 0:00:32.200 navigate the AI era. We'll discuss its chief Global Affairs Officer, 0:00:32.280 --> 0:00:33.880 Chris Lahine later this hour. 0:00:34.040 --> 0:00:36.680 Plus Oracle names a new CFO to help the company 0:00:36.760 --> 0:00:40.040 navigate massive data center development plans and a cash crunch. 0:00:40.960 --> 0:00:43.760 And NASA's artemist too, is set for the first lunar 0:00:43.800 --> 0:00:47.720 flyby with astronauts on board in more than fifty years. 0:00:47.840 --> 0:00:50.000 We'll discuss what to expect. 0:00:50.000 --> 0:00:54.000 And all of this amid the context of global instability, 0:00:54.040 --> 0:00:57.320 concerns about the Middle East conflict, and indeed a market 0:00:57.320 --> 0:01:00.400 that's on edge, hopeful that cespig could be up on us, 0:01:00.560 --> 0:01:03.360 but still we're seeing the latest rebuttals. 0:01:02.800 --> 0:01:03.560 Coming from Iran. 0:01:03.600 --> 0:01:05.720 We're still holding onto games that four ten percent on 0:01:05.720 --> 0:01:08.600 the Nasdaq one hundred. I'm looking at Bitcoin holding above 0:01:09.040 --> 0:01:11.679 that level of two almost three percent higher but just 0:01:11.760 --> 0:01:14.600 sub the seventy thousand dollars. But there is optimism in 0:01:14.640 --> 0:01:16.640 the market is it right to be had at the. 0:01:16.560 --> 0:01:19.840 Moment ed the headlines on the term of this morning 0:01:19.920 --> 0:01:22.880 is about Iran rejecting a ceasefire and wanting a permanent 0:01:23.000 --> 0:01:25.399 end to the war in Iran. That's bringing bloembost Tyler 0:01:25.480 --> 0:01:26.720 Kendo out of Washington, DC. 0:01:27.440 --> 0:01:28.320 That's where we're at. 0:01:28.440 --> 0:01:30.640 You know, there is a back and forth between which 0:01:30.800 --> 0:01:33.960 each side wants from the President's perspective and from the 0:01:34.040 --> 0:01:36.320 United States of America's perspective. 0:01:36.360 --> 0:01:37.840 What is the latest, Tyler. 0:01:38.800 --> 0:01:41.720 Hey And Well, at this point, it's not necessarily surprising 0:01:41.720 --> 0:01:43.920 that we heard from Irani and state media within the 0:01:44.000 --> 0:01:47.680 last thirty minutes saying that Iran has rejected a ceasefire proposal, 0:01:47.720 --> 0:01:50.800 because earlier this morning, an Iranian official came out and 0:01:50.840 --> 0:01:54.320 said that quote, no rational person would agree to cease fire, 0:01:54.480 --> 0:01:57.600 accusing a short term agreement of being in favor of 0:01:57.640 --> 0:02:01.160 the US to give the US time to regroup. But 0:02:01.200 --> 0:02:03.600 this is really raising questions as we get closer to 0:02:03.680 --> 0:02:06.920 President Trump's now extended deadline of tomorrow at eight pm 0:02:06.960 --> 0:02:10.440 Eastern for Iran to make a deal amid US threats 0:02:10.480 --> 0:02:14.399 to hit Iranian civilian infrastructure. So we'll have to watch 0:02:14.440 --> 0:02:16.480 where this goes from here. President Trump is set to 0:02:16.520 --> 0:02:19.360 brief reporters at one pm Eastern, where we may be 0:02:19.400 --> 0:02:21.919 able to get some more of our questions answered, because 0:02:21.960 --> 0:02:24.840 Axios is now reporting that Iran has instead submitted a 0:02:24.880 --> 0:02:28.239 ten point plan to the US, which US officials are 0:02:28.240 --> 0:02:32.040 calling maximalist in their demands. We don't have the details 0:02:32.080 --> 0:02:34.800 quite yet on this proposal, but we know previously Iran 0:02:35.040 --> 0:02:39.040 has demanded, for example, to have sovereignty over the Strait 0:02:39.080 --> 0:02:41.400 of her moves, and that appears to still be the 0:02:41.440 --> 0:02:44.600 biggest sticking point. We've heard from Iranian state media over 0:02:44.680 --> 0:02:47.600 the weekend saying that Iran needs to have payments for 0:02:47.720 --> 0:02:50.400 war damages that they are seeking to be repaid through 0:02:50.680 --> 0:02:53.640 tolls charged on ships going through the Strait. 0:02:53.680 --> 0:02:54.680 There has been a little bit. 0:02:54.600 --> 0:02:56.880 Of progress, as you all know, Bloomberg News crunch the 0:02:56.960 --> 0:02:59.320 data and are now saying that we have seen the 0:02:59.360 --> 0:03:02.400 highest amount of traffic through the Strait at this weekend, 0:03:02.400 --> 0:03:04.880 but it is still falling well below those levels that 0:03:04.919 --> 0:03:06.560 we saw before the war began. 0:03:07.040 --> 0:03:09.120 The most Tyler Kendall with what you need to know 0:03:09.240 --> 0:03:12.200 in terms of geopolitics, we thank you. Look as tensions 0:03:12.200 --> 0:03:14.520 in the Middle East remain elevated to say the least. 0:03:14.639 --> 0:03:17.040 Investors are weighing what it means for the markets, full risk, 0:03:17.080 --> 0:03:19.120 apetite and the outlook of big tech. 0:03:19.200 --> 0:03:19.799 For us on this. 0:03:19.760 --> 0:03:23.080 Show, Jed Elbertson person to talk to about it. Urgent 0:03:23.120 --> 0:03:26.280 Capital Management joins us. Now, you help manage the large 0:03:26.280 --> 0:03:29.800 cap equity fund over there, and it's a tough time 0:03:30.240 --> 0:03:33.679 for anyone trying to navigate these markets. When will big 0:03:33.720 --> 0:03:35.560 tech manage to go back on the upside. We had 0:03:35.560 --> 0:03:37.280 a strong week last week or will that last? 0:03:37.920 --> 0:03:38.119 Yeah? 0:03:38.120 --> 0:03:40.200 I think that's probably the biggest question facing the market 0:03:40.200 --> 0:03:43.480 today heading into earning season here in two weeks. I 0:03:43.480 --> 0:03:49.880 think investors in big tech, the big CAPEX spenders, especially Amazon, Meta, Microsoft, Google, 0:03:50.560 --> 0:03:54.960 investors want more confidence that those humongous CAPEX spending plans 0:03:55.040 --> 0:03:58.320 are going to pay off in higher revenue and higher profits. 0:03:58.680 --> 0:04:01.640 And there are initial signs of that, but not enough 0:04:01.680 --> 0:04:04.520 to get investors over the hump. And so this is 0:04:04.560 --> 0:04:07.400 a really big earning season for them. They announced last quarter, 0:04:07.920 --> 0:04:10.920 you know, humongous increases sixty seventy eighty percent increases in 0:04:10.960 --> 0:04:15.160 capex for twenty twenty six. Investors want to see positive 0:04:15.360 --> 0:04:19.000 revenue estimate revisions you know, to follow that, and I 0:04:19.040 --> 0:04:23.039 think AWS and Google's GCP in particular are going to 0:04:23.040 --> 0:04:25.120 show us that in the first quarter, with more to 0:04:25.120 --> 0:04:27.920 come later in the year. And then Microsoft is more 0:04:27.960 --> 0:04:31.800 of a mixed picture because over the last year they've 0:04:31.880 --> 0:04:36.240 kind of reprioritized their own model development within the company 0:04:36.279 --> 0:04:39.440 after their Opening Eye agreement was renegotiated. So a little 0:04:39.440 --> 0:04:41.080 bit of a messy picture with Microsoft. But I think 0:04:41.080 --> 0:04:44.560 we're going to see clear signs of acceleration for AWS and. 0:04:44.640 --> 0:04:47.320 GCP, and that will be the catalyst enough to put 0:04:47.360 --> 0:04:50.120 the geopolitical acts to the sidelines for big fund managers, 0:04:50.160 --> 0:04:50.440 you think. 0:04:50.920 --> 0:04:53.080 I think it has the potential to be. Investors have 0:04:53.120 --> 0:04:56.520 been disappointed in Amazon and Google and Microsoft over the 0:04:56.600 --> 0:04:58.920 last year because their free cash flow estimates have been 0:04:58.920 --> 0:05:02.080 declining because of those really big catbacks increases. I think 0:05:02.160 --> 0:05:04.520 that trend is going to reverse here as twenty twenty 0:05:04.520 --> 0:05:07.240 six progresses, and I hope that the first quarter is 0:05:07.320 --> 0:05:08.680 kind of the first tangible side of. 0:05:08.600 --> 0:05:12.000 That jed state of play is then, as that one 0:05:12.080 --> 0:05:15.120 hundred down more than four percent, modestly underperforming the S 0:05:15.160 --> 0:05:18.719 and P five hundred chip stocks up eleven percent year today, 0:05:18.880 --> 0:05:21.400 in part because of memory probably earlier in the year. 0:05:21.800 --> 0:05:22.520 What I'm trying to get a. 0:05:22.520 --> 0:05:27.080 Sense of is how micro focused investors in the technology 0:05:27.080 --> 0:05:29.640 sector are on the war in Iran, where if they 0:05:29.640 --> 0:05:34.040 were already looking past it anyway at other structural and 0:05:34.080 --> 0:05:37.440 spending issues that you just outlined in part with the hyperscalers. 0:05:38.080 --> 0:05:41.840 Yeah, I think prior to the war breaking out, tech 0:05:42.000 --> 0:05:45.560 was underperforming meaningfully. From the start of the year to 0:05:45.640 --> 0:05:47.680 the start of the war. Since the war broke out, 0:05:47.680 --> 0:05:50.000 you know, the last you know, twenty five trading days 0:05:50.080 --> 0:05:54.039 or so, tech has performed better relative to other sectors. 0:05:54.920 --> 0:05:57.800 So you know, I interpret that as the market being 0:05:57.839 --> 0:06:00.880 more concerned with AI and it's really fast, you know, 0:06:00.920 --> 0:06:04.560 adoption within our economy and the positives and negatives there 0:06:04.680 --> 0:06:06.560 more so than the impact of war. 0:06:07.600 --> 0:06:10.440 I have to ask you about some of the IPOs 0:06:10.480 --> 0:06:12.520 waiting in the wings. There was a lot over the 0:06:12.520 --> 0:06:16.800 weekend on the social media is about the relative performance 0:06:16.800 --> 0:06:20.880 of some public names might be indicative of investors getting 0:06:20.920 --> 0:06:25.560 themselves ready for a SpaceX IPO in June. We reported 0:06:25.640 --> 0:06:28.520 just last week that the S one file confidentially it's 0:06:28.560 --> 0:06:31.279 going to be June. Is that something that actually happens 0:06:31.320 --> 0:06:33.680 in markets where people are like, I'd better have some 0:06:33.720 --> 0:06:34.600 cash ready for this. 0:06:35.520 --> 0:06:37.080 Yeah, yeah, I think you know. 0:06:37.120 --> 0:06:39.920 Perhaps the most fascinating tech question in twenty twenty six 0:06:40.080 --> 0:06:44.440 is where's the money going to come from for the SpaceX, 0:06:44.520 --> 0:06:48.920 Anthropic and Open AI IPOs. And I think an obvious 0:06:49.000 --> 0:06:52.680 first thought is the rest of publicly traded tech. Do 0:06:52.760 --> 0:06:55.800 investors pre trade that to the extent you're suggesting, you know, 0:06:55.839 --> 0:06:58.000 trade's happening in March and April for an IPO that 0:06:58.400 --> 0:07:00.479 will come in June and then perhaps the fourth quarter 0:07:00.480 --> 0:07:01.400 in the case of Anthropic. 0:07:01.440 --> 0:07:04.200 And I'm not suggesting, Jed, I'm asking. I've got no 0:07:04.279 --> 0:07:06.520 idea because I don't participate in the market, So that's 0:07:06.520 --> 0:07:07.440 why I want to ask you. 0:07:07.760 --> 0:07:11.360 Yeah, yeah, I doubt it. Personally, We're not doing that 0:07:11.400 --> 0:07:16.080 at Argent Capital. We will consider Anthropic and an Open 0:07:16.080 --> 0:07:19.840 AI and SpaceX, but we wouldn't pre trade it by 0:07:19.840 --> 0:07:23.240 a couple months and get that cash lined up with that, 0:07:23.560 --> 0:07:25.600 you know, duration, that's not necessary for us. 0:07:26.200 --> 0:07:30.000 What's so interesting is they are, yes, a space focused company, 0:07:30.000 --> 0:07:32.680 and I know you have exposure to space and aerospace 0:07:32.720 --> 0:07:34.840 more poorly in the fund. But we've got through the 0:07:34.840 --> 0:07:36.880 biggest players in AI all coming to the market at 0:07:36.880 --> 0:07:37.360 the same time. 0:07:37.440 --> 0:07:37.680 Now. 0:07:37.680 --> 0:07:41.040 Interestingly, Jamie Diamond's been putting his very long pen to 0:07:41.120 --> 0:07:45.280 paper or typing away for his annual letter to investors, 0:07:45.320 --> 0:07:47.240 and today he did talk about AI in many ways, 0:07:47.280 --> 0:07:49.280 and I want to focus in on the investment side 0:07:49.320 --> 0:07:52.600 because he's saying it's not a speculative bubble. But at 0:07:52.600 --> 0:07:55.040 the moment, you can't see who the winners and the 0:07:55.080 --> 0:07:57.240 losers are actually going to be in AI related industry. 0:07:57.320 --> 0:07:58.000 Do you think that's right? 0:07:58.080 --> 0:07:59.560 Can you not discern who the winners are yet? 0:08:00.080 --> 0:08:00.280 Yeah? 0:08:00.280 --> 0:08:02.120 I think those comments stuck out to me and really 0:08:02.160 --> 0:08:05.000 spoke to me. I think that he gave a pretty 0:08:05.000 --> 0:08:07.320 accurate description of what's happening in tech today. I think 0:08:07.320 --> 0:08:10.360 that they're you know, in any investing environment, there are 0:08:10.400 --> 0:08:13.160 certain companies that fit in the too hard bucket for investors. 0:08:13.720 --> 0:08:17.080 There are too many unanswered questions, there's too much uncertainty. 0:08:17.120 --> 0:08:19.360 Investors decide I'd rather be on the sideline. I don't 0:08:19.360 --> 0:08:22.840 want to invest in this right now. Today it feels 0:08:22.920 --> 0:08:25.640 like that too hard bucket is really large, much bigger 0:08:25.640 --> 0:08:27.360 than normal, And of course software is in the two 0:08:27.400 --> 0:08:30.520 hard bucket. I think insurance brokers are in the two 0:08:30.560 --> 0:08:33.120 hard bucket, and a whole bunch of other sectors and 0:08:33.160 --> 0:08:36.600 industries or investors are not sure if AI is going 0:08:36.600 --> 0:08:39.280 to be a net positive for these businesses and industries 0:08:39.360 --> 0:08:41.240 or if it will be a net negative. And so 0:08:41.720 --> 0:08:46.080 we've seen valuations compressed significantly for software most notably, but 0:08:46.160 --> 0:08:50.320 many other industries and sectors too. So his comments today just, 0:08:50.880 --> 0:08:52.680 you know, I think it was a good kind of 0:08:52.720 --> 0:08:55.160 description of ware markets to today. That too hard bucket 0:08:55.200 --> 0:08:58.000 is really big. His comments indicate, you know, he sees 0:08:58.000 --> 0:09:00.280 a lot of companies in that too hard bucket, and 0:09:01.080 --> 0:09:04.480 you know, me, as an investor, my response to that is, 0:09:05.400 --> 0:09:05.920 I think that. 0:09:05.960 --> 0:09:08.160 Smells like opportunity in many ways. 0:09:08.800 --> 0:09:11.040 I think investors are starting to pick through the rubble 0:09:11.080 --> 0:09:13.880 as it relates to software in particular, and I think 0:09:13.880 --> 0:09:15.600 there's a lot more of that to come in the future. 0:09:15.640 --> 0:09:19.960 There are software companies whose competitive position will erode because 0:09:20.000 --> 0:09:22.800 of AI and the reduced cost of software development, But 0:09:22.840 --> 0:09:24.760 I think there are other software companies that are going 0:09:24.800 --> 0:09:27.880 to adopt AI integrated into their products, set improve the 0:09:27.920 --> 0:09:29.720 offerings for consumers, and grow and thrive. 0:09:29.880 --> 0:09:34.600 Right Jed Elberate, Large and Capital Management, thank you very 0:09:34.720 --> 0:09:37.439 much now coming up the world face is an era 0:09:37.840 --> 0:09:41.600 of AI upheaval. But fear not, Open ai is out 0:09:41.640 --> 0:09:45.320 with a set of policy recommendations for people, real human 0:09:45.400 --> 0:09:48.079 people first will discuss that next. 0:09:48.400 --> 0:09:49.320 This has been bog tech. 0:09:53.760 --> 0:09:57.760 Open ai says it's working to quote ensure AI benefits everyone, 0:09:58.080 --> 0:10:00.520 and it's now rolling out policy recommendations to address the 0:10:00.600 --> 0:10:03.880 rapid social changes AI is driving, from jobs to regulation 0:10:04.240 --> 0:10:07.199 for more. Oplomerg's AI reporter Seth Figman, choices, now you're 0:10:07.200 --> 0:10:09.000 not a reporter, you're an editor, and you're help managing 0:10:09.040 --> 0:10:11.400 the team in many ways. Seth, I'm really interested in 0:10:11.880 --> 0:10:14.600 on the why now. This is a lot of proposals, 0:10:14.600 --> 0:10:17.959 conversation starters, the intertwining of public private partnerships. 0:10:18.160 --> 0:10:19.439 But why are they're putting it out now? 0:10:19.640 --> 0:10:21.559 Yeah, I mean, certainly the rhetoric from open ai and 0:10:21.600 --> 0:10:24.000 elsewhere is that we are moving very fast towards more 0:10:24.040 --> 0:10:27.240 advanced aisystems. Open ai specifically it's supposed to be working 0:10:27.240 --> 0:10:29.280 on a new model in the coming week, so it 0:10:29.320 --> 0:10:31.160 could partly be a way of getting ahead of that. 0:10:31.480 --> 0:10:34.080 Keep in mind that what they're saying here is still hypothetical. 0:10:34.120 --> 0:10:37.360 They're talking about a more advanced form I called super 0:10:37.400 --> 0:10:41.040 intelligence outperform any person on Earth, like any task. We're 0:10:41.040 --> 0:10:43.440 in that there yet, But these proposals are just that 0:10:43.480 --> 0:10:45.839 they're trying to shift the discourse a little bit and 0:10:45.960 --> 0:10:49.160 trying to incentivize bigger ideas a new social contract, if 0:10:49.200 --> 0:10:51.880 you will. That they seem to liken loftily to the 0:10:51.920 --> 0:10:52.360 new deal. 0:10:53.520 --> 0:10:55.880 So for a lot of open AI news over a 0:10:55.920 --> 0:10:59.120 long weekend in the United States, reshuffle in terms of 0:10:59.200 --> 0:11:03.240 leadership and manage to health related and one sort of 0:11:03.280 --> 0:11:07.040 strategic just update us as best you can. 0:11:07.720 --> 0:11:10.120 Yeah, a lot of news right before the holiday weekend. 0:11:10.240 --> 0:11:12.720 You know, Fiji Cimo, who has really been sort of 0:11:12.720 --> 0:11:16.760 a fast growing influential figure in the organization, is stepping 0:11:16.800 --> 0:11:20.240 back for a short term medical leave. She was previously 0:11:20.240 --> 0:11:23.040 the CEO of Instacart and has been really instrumental in 0:11:23.080 --> 0:11:26.040 a lot of their product and business initiatives. Brad Leikap, 0:11:26.080 --> 0:11:28.360 who we've certainly had on our air before, the CEO 0:11:28.440 --> 0:11:30.880 of the company, who have assumed some of the CEO 0:11:30.960 --> 0:11:34.280 responsibilities over the last year and change, is now stepping 0:11:34.320 --> 0:11:37.520 into a new special role where he'll help oversee partly 0:11:37.600 --> 0:11:40.400 the efforts to bring AI to more businesses through a 0:11:40.440 --> 0:11:44.520 joint venture with PE firms, and then their CMO is 0:11:44.559 --> 0:11:47.760 stepping down permanently to deal with her recovery from cancer. 0:11:47.800 --> 0:11:50.600 So it's a mix of factors here and stepping back. 0:11:50.640 --> 0:11:52.880 It's a meaningful shake up at the time when we 0:11:52.920 --> 0:11:56.160 understand this company is moving ahead with plans for possible 0:11:56.160 --> 0:11:58.840 IPO and just close the largest funding round that we 0:11:58.880 --> 0:11:59.520 have ever seen. 0:12:01.240 --> 0:12:04.439 All Right, Bloomberg's AI editor Seth Fighmann, thank you very much. 0:12:04.440 --> 0:12:07.720 Another story out this morning, Oracle has tapped former Schneider 0:12:07.720 --> 0:12:12.880 Electric EVP Hillary Maxon as CFO and that's effective immediately. 0:12:12.920 --> 0:12:14.480 For more on the move, let's get out to Bloomberg's 0:12:14.480 --> 0:12:20.840 Brady Ford, who covers Oracle Hillary Maxon. Interesting appointment, But 0:12:20.880 --> 0:12:23.760 I think the big story is, you know, Oracle has 0:12:23.800 --> 0:12:27.000 a new CFO at a critically important time for managing 0:12:27.000 --> 0:12:28.000 Oracle finances. 0:12:28.040 --> 0:12:28.600 What do we need to know? 0:12:28.679 --> 0:12:30.680 You get to remember Oracle is going through a pretty 0:12:31.080 --> 0:12:34.080 narrowly financial situation, right, I mean, they are transitioning from 0:12:34.120 --> 0:12:37.320 an asset lied database company, the one that is going 0:12:37.400 --> 0:12:40.640 through tens of billions of dollars in data center development, 0:12:40.720 --> 0:12:44.079 and they've had to issue equity. They're doing thousands of 0:12:44.200 --> 0:12:48.040 layoffs and so they're navigating a pretty complicated financial picture 0:12:48.080 --> 0:12:50.880 and it's not shocking to see a new leader for 0:12:50.960 --> 0:12:51.880 those finances. 0:12:52.679 --> 0:12:52.880 Yep. 0:12:53.080 --> 0:12:56.360 The expertise that she brings in particular the background and 0:12:57.040 --> 0:12:59.520 where really how focused will lie you think, Brady. 0:13:00.960 --> 0:13:03.480 Yeah, well I think that's really interesting because you know, 0:13:03.600 --> 0:13:06.440 they didn't pick a software CFO. They picked someone with 0:13:06.559 --> 0:13:11.720 heavy industrial experience, and that's effectively how the biggest tech companies. 0:13:11.280 --> 0:13:12.559 Are operating now right. 0:13:12.600 --> 0:13:16.240 They are heavy industrial companies with massive cap x books, 0:13:16.240 --> 0:13:19.040 and it makes sense that they would bring somebody kind 0:13:19.080 --> 0:13:21.800 of outside the software world to navigate that. 0:13:23.200 --> 0:13:25.560 Thirty four across all things, Oracle as well, if you 0:13:25.640 --> 0:13:28.480 always are, thank you very much. Indeedah Coming up SpaceX 0:13:28.720 --> 0:13:31.200 it prepares for its launch into the public markets. That 0:13:31.280 --> 0:13:34.560 says more than two trillion dollar valuation potentially. We'll discuss 0:13:34.600 --> 0:13:38.040 expectations for its listing and other mega public debuts. That's next. 0:13:38.480 --> 0:13:38.720 This is a. 0:13:38.679 --> 0:13:39.600 Brumbig tech. 0:13:48.400 --> 0:13:51.400 You know, masks SpaceX, but it's meeting with banks today. 0:13:51.440 --> 0:13:53.680 We understand as the world's most valuable startup gears to 0:13:53.760 --> 0:13:57.480 pitch potentially because ever market debut. Let's get the latest 0:13:57.559 --> 0:13:58.800 room Meg's Bailey Lipshalts. 0:13:59.120 --> 0:14:00.679 So we understand much. 0:14:00.559 --> 0:14:02.520 Is on the table, much has been asked of banks, 0:14:02.600 --> 0:14:04.880 not just only advice it would seem in some reporting, 0:14:05.240 --> 0:14:07.439 But what are we likely to get in terms of 0:14:07.520 --> 0:14:10.600 a sense of when they could come, how significantly they're 0:14:10.600 --> 0:14:12.160 going to get to this true trillion number. 0:14:12.360 --> 0:14:14.439 Yeah, So what you'll see play out over the coming 0:14:14.440 --> 0:14:17.640 weeks is these so called testing the waters meetings. So basically, 0:14:17.679 --> 0:14:21.000 bankers will meet with their pitch decks, show investors and say, hey, 0:14:21.040 --> 0:14:25.400 look at Tara fab, how exciting our orbital space data centers, and. 0:14:25.360 --> 0:14:27.160 What the ultimate vision could look like. 0:14:27.360 --> 0:14:30.920 It won't necessarily focus on actual valuation just yet, but 0:14:30.960 --> 0:14:34.240 it'll really center on the financials, financial forecast, what twenty seven, 0:14:34.280 --> 0:14:37.040 what twenty twenty eight could look like, given the expectations 0:14:37.040 --> 0:14:39.560 that this should price in June. So the next kind 0:14:39.600 --> 0:14:43.080 of march forward would be waiting for that formal flip public, 0:14:43.480 --> 0:14:45.680 which would then kick start Caught twenty two days to 0:14:45.720 --> 0:14:46.280 go in public. 0:14:46.320 --> 0:14:48.040 So that's the next key milestone. 0:14:48.080 --> 0:14:50.280 But we're going to be talking to investors, talking to sources, 0:14:50.280 --> 0:14:52.600 trying and to understand what these meetings look like while 0:14:52.720 --> 0:14:56.120 the company awaits a formal response from the SEC, which 0:14:56.120 --> 0:14:57.120 would then kind of. 0:14:57.120 --> 0:14:58.240 Move this along. 0:14:59.240 --> 0:15:01.680 We report right in the middle of last week that 0:15:01.760 --> 0:15:05.360 the confidential filings in Then we reported that the valuation 0:15:05.520 --> 0:15:09.280 being targeted is climbing above two trillion dollars. But all 0:15:09.320 --> 0:15:11.720 of those little bits of reporting would indicate what you 0:15:11.800 --> 0:15:15.480 just talked about, that June is happening. What else would 0:15:15.560 --> 0:15:18.840 give us confidence that a June IPO is realistic at 0:15:18.880 --> 0:15:19.480 this point? 0:15:19.640 --> 0:15:21.680 The big thing d is that it'll take a month 0:15:21.800 --> 0:15:25.120 typically for the SEC to give formal comments. So they 0:15:25.160 --> 0:15:27.920 filed the middle of last week, call it the early 0:15:28.120 --> 0:15:30.320 first few days of May. Is when they would get 0:15:30.320 --> 0:15:32.880 that filing response from the SEC. It would be up 0:15:32.920 --> 0:15:34.760 to the company and up to its lawyers to address 0:15:34.760 --> 0:15:38.000 any qualms from regulators to really set the stage for 0:15:38.040 --> 0:15:41.280 what we call a formal public flip, which then kicks 0:15:41.280 --> 0:15:44.240 off again a fifteen day waiting period before a formal 0:15:44.280 --> 0:15:46.640 marketing could take place and then the deal could be priced. 0:15:46.640 --> 0:15:48.320 So the big thing to keep in mind is if 0:15:48.320 --> 0:15:50.600 there's any hold up with the SEC that could delay 0:15:50.640 --> 0:15:53.440 this process. But from our understanding, the company wants to 0:15:53.440 --> 0:15:55.800 move as quickly as possible, which would then mean a 0:15:55.840 --> 0:15:59.400 public flip where you formally see that s one on 0:15:59.560 --> 0:16:02.400 Edgar kind of being breaking news sometime in mid to 0:16:02.480 --> 0:16:04.800 late May, which would then set the stage for an 0:16:04.800 --> 0:16:07.600 IPO two price in the company to start trading at 0:16:07.600 --> 0:16:09.200 some point in mid to late June. 0:16:09.400 --> 0:16:12.440 Obviously, retail investors get excited, but who are the big 0:16:12.480 --> 0:16:14.240 players that like you to be talking to at the moment. 0:16:14.280 --> 0:16:16.640 There has been reporting of big anchor investors who are 0:16:16.640 --> 0:16:17.200 being looked for. 0:16:17.360 --> 0:16:20.800 Anyone in everyone will be kind of tasked with investing. 0:16:20.800 --> 0:16:23.760 When you're looking to raise seventy five billion dollars, that's 0:16:23.760 --> 0:16:26.120 more than double the largest IPO of all time. And 0:16:26.160 --> 0:16:28.440 when you look at a book that, according to our reporting, 0:16:28.440 --> 0:16:30.760 they could try to sell about thirty percent to retail, 0:16:30.960 --> 0:16:33.440 that's more than twenty two billion dollars. So you're still 0:16:33.480 --> 0:16:36.760 solving for a fifty billion dollar problem, whether that's sovereign 0:16:36.800 --> 0:16:40.480 wealth funds around the world, whether that's institutional investors. And also, oh, 0:16:40.560 --> 0:16:42.520 by the way, probably being pitched to some of the 0:16:42.560 --> 0:16:47.000 largest strategic investors, just given the propensity for XAI orbital 0:16:47.080 --> 0:16:49.520 data centers and kind of the grand vision that Elon 0:16:49.600 --> 0:16:50.320 Musk is pitching. 0:16:51.040 --> 0:16:52.280 Bloomberg's beaty Lipschultz. 0:16:52.320 --> 0:16:54.640 Thank you very much that stick with expectations for a 0:16:54.640 --> 0:16:58.280 SPACEXIPO and other possible mega listings this year at lease 0:16:58.440 --> 0:17:00.880 Via is with us. She's the founder partner at IPO 0:17:00.920 --> 0:17:04.440 Advisory firm Class five Group. Bailey was just talking about 0:17:04.480 --> 0:17:07.240 the Test the Waters meetings and one of the things 0:17:07.280 --> 0:17:09.440 we've tried to report on in some detail over a 0:17:09.520 --> 0:17:13.240 number of years. It's not you is the revenues breakdown 0:17:13.280 --> 0:17:15.360 at SpaceX right there was a point where it went 0:17:15.400 --> 0:17:18.919 from mostly launched to mostly starlink. What I'm seeing and 0:17:18.960 --> 0:17:21.600 hearing right now is starlink at the top end tracking 0:17:21.640 --> 0:17:24.399 to maybe twenty billion dollars of revenues this year. You know, 0:17:24.440 --> 0:17:28.159 if they exceed, how do you price an IPO on 0:17:28.200 --> 0:17:28.760 that data? 0:17:30.280 --> 0:17:33.640 It's it's the perfect question, and thanks for having me here. 0:17:34.400 --> 0:17:36.360 First of all, all the numbers we've seen so far 0:17:36.560 --> 0:17:40.679 are leaked numbers or rumored numbers or through the great mind. 0:17:40.840 --> 0:17:44.000 Until they flipped that document public, we aren't really going 0:17:44.040 --> 0:17:46.000 to know what any of the numbers are. And then 0:17:46.080 --> 0:17:47.800 until they go out as you just heard, and meet 0:17:47.800 --> 0:17:50.560 with investors and the test the Waters, we're not going 0:17:50.600 --> 0:17:53.600 to know what the expect the Bank's expectations are for 0:17:53.960 --> 0:17:56.399 twenty twenty seven twenty twenty eight. I presume they'll go 0:17:56.480 --> 0:18:01.480 out much further. But none of them that are being 0:18:01.560 --> 0:18:06.360 bandied about in any way fundamentally correlate to a trillion 0:18:06.400 --> 0:18:08.919 dollar or a trillion and a half dollar or a 0:18:08.960 --> 0:18:15.360 two trillion dollar valuation. It's all, it's all hope. It's 0:18:15.440 --> 0:18:18.840 all do we believe the vision. It's all do we 0:18:18.920 --> 0:18:22.480 believe and believe that they will have limited competition, which 0:18:22.720 --> 0:18:27.280 we know there's more coming. So it's a leap of 0:18:27.320 --> 0:18:30.200 faith and there's going to be a lot of fomo here. 0:18:30.640 --> 0:18:33.600 And the best way to look at how to value 0:18:33.640 --> 0:18:36.160 it is to go way back to nineteen thirty four 0:18:36.520 --> 0:18:38.639 where you look at Graham and God who wrote the 0:18:38.680 --> 0:18:42.880 book on Fundamental Securities valuations, and they had a great 0:18:42.880 --> 0:18:45.920 comment that was applicable during the Internet phase, and it's 0:18:45.920 --> 0:18:50.520 applicable now and it's hey, look, there are times I'm paraphrasing, 0:18:50.560 --> 0:18:53.040 but there are times when there are new fields of endeavor, 0:18:53.359 --> 0:18:57.280 new companies in areas we've never seen before, and investors 0:18:57.920 --> 0:19:00.440 can in fact make a lot of money if they 0:19:00.440 --> 0:19:04.600 are involved early enough. But everybody needs to understand it 0:19:04.680 --> 0:19:08.800 is not a fundamental investment. It is a bet. It 0:19:08.920 --> 0:19:12.560 is a speculative bet, and that's what money at these 0:19:12.640 --> 0:19:16.600 valuations will be going into SpaceX. You roll a dice 0:19:17.000 --> 0:19:21.600 and you see, you know, Starlink's pretty cool, Lisa, this 0:19:21.640 --> 0:19:23.920 is rolling a dice situation that's suddenly not so. 0:19:24.040 --> 0:19:26.240 It's going to be being discussed with banks talking to 0:19:26.280 --> 0:19:27.000 investors today. 0:19:27.920 --> 0:19:31.760 There is no math that correlates the current revenues to 0:19:31.880 --> 0:19:35.840 two trillion dollars none. So Yes, it's a bet on 0:19:35.920 --> 0:19:41.480 the future, and it's a compelling and potentially fascinating and 0:19:41.680 --> 0:19:43.960 enormous and also very uncertain. 0:19:43.560 --> 0:19:44.520 Future, Lise. 0:19:45.720 --> 0:19:48.920 Typically before a big IPO of a late stage startup, 0:19:48.960 --> 0:19:51.680 they would raise a big round right, largely to bringing 0:19:51.680 --> 0:19:56.640 the crossover investors. In this case, SpaceX merged with XAI, 0:19:57.000 --> 0:20:00.000 which changed the valuation dynamic, brought debt onto the balance sheet, 0:20:00.080 --> 0:20:02.800 et cetera. What was your assessment at that transaction? 0:20:02.880 --> 0:20:03.800 Pre IPA. 0:20:05.760 --> 0:20:11.240 Typical mosque, I would say, I think again, until we 0:20:11.400 --> 0:20:14.439 know what the math looks like, it's very hard to 0:20:14.920 --> 0:20:19.280 make any sort of a sound assessment. It's clearly bundling 0:20:19.320 --> 0:20:23.200 things together, and heaven knows, he's done pretty astonishing things 0:20:23.240 --> 0:20:25.600 in the past that have worked out and some that haven't. 0:20:26.400 --> 0:20:29.760 So it's we don't yet know. And again I've not 0:20:29.800 --> 0:20:32.240 been on the test the waters meetings. Maybe they're explaining that, 0:20:32.400 --> 0:20:35.240 maybe they're explaining this, but how the two are going 0:20:35.280 --> 0:20:37.440 to interact such that one in one equal eight. 0:20:39.160 --> 0:20:40.879 Does this have read across to any of the others 0:20:40.880 --> 0:20:43.280 in the pipeline, Lisa, or is this very much your 0:20:43.400 --> 0:20:45.920 view on Elo Musk and this bet in SpaceX because 0:20:45.920 --> 0:20:48.000 it's also a beten XAI and we have plenty of 0:20:48.040 --> 0:20:50.080 the AI companies potentially waiting in the wings. 0:20:51.320 --> 0:20:54.560 So from a general sense, when you have a very 0:20:54.680 --> 0:20:57.120 large IPO, and we've never seen one like this before, 0:20:57.480 --> 0:21:00.199 but we've had attlee Baba, We've had Facebook, We've had 0:21:00.240 --> 0:21:03.199 other big we had Saudi a Ramco, although kind of 0:21:03.359 --> 0:21:06.440 a very different industry. When you have a big IPO 0:21:06.640 --> 0:21:10.320 that goes goes well as Ali Baba did, usually a 0:21:10.359 --> 0:21:12.560 number of the companies in the wings put the foot 0:21:12.560 --> 0:21:14.320 on the guests and say we're going to take advantage 0:21:14.320 --> 0:21:17.040 of the fact that investors are feeling good about ideos, 0:21:17.440 --> 0:21:20.080 and you see much more activity when you see a 0:21:20.119 --> 0:21:23.080 larger IPO that stumbles out of the Gate as Facebook did, 0:21:23.880 --> 0:21:27.040 people and companies go back into hibernation for a while. 0:21:27.320 --> 0:21:29.399 So this could be the opening of the door that 0:21:29.480 --> 0:21:32.760 certainly bankers would love to see, but we have to 0:21:32.760 --> 0:21:33.639 see how it plays. 0:21:35.440 --> 0:21:38.200 Is Abaya, It's been fascinating talking to you, partner and 0:21:38.200 --> 0:21:41.320 founder at Class five Group about the lineup, and that's 0:21:41.359 --> 0:21:46.280 currently happening with all things public markets. Let's so quick 0:21:46.320 --> 0:21:48.040 recap on the public markets right now as to what's 0:21:48.040 --> 0:21:50.960 happening when President Trump has been speaking. Some headlines have 0:21:51.000 --> 0:21:52.960 been coming out moments ago part of the White House 0:21:53.000 --> 0:21:56.040 East egg roll, but of course conversation has moved into 0:21:56.080 --> 0:21:59.000 the world of Iran. We understand that President Trump currently 0:21:59.080 --> 0:22:01.400 is saying that ron as some missiles and drones left, 0:22:01.400 --> 0:22:03.800 and the Runian people will fight the regime when it's 0:22:03.840 --> 0:22:06.280 safe for them to do so. But more broadly, he's 0:22:06.320 --> 0:22:09.560 talking about Iran cannot have a nuclear weapon ed. He's 0:22:09.600 --> 0:22:13.639 also talking about his popularity right now, the American people 0:22:13.680 --> 0:22:16.280 wanting the US to win and to come home, and 0:22:16.320 --> 0:22:20.320 more broadly that he'd like this end to the current conflict. 0:22:20.480 --> 0:22:22.600 D okay. 0:22:22.760 --> 0:22:25.160 Coming up on the program, we're speak of Chris Lahane, 0:22:25.320 --> 0:22:29.200 open AI's chief Global Affairs officer. As the company releases 0:22:29.320 --> 0:22:34.200 social and economic policy proposals for the AI era, it's 0:22:34.200 --> 0:22:36.520 half time in the program will be right back in. 0:22:36.600 --> 0:22:49.320 This is Bloomberg Tech. Welcome back to Bloomberg Tech. In 0:22:49.359 --> 0:22:53.040 an era of artificial intelligence, upheave or open ayes proposing 0:22:53.040 --> 0:22:56.080 ways to spread the benefits of the technology and put 0:22:56.119 --> 0:22:59.280 people first. To start, It's published a set of policy 0:22:59.320 --> 0:23:03.640 recommendations ranging from a public wealth fund and expanded safety 0:23:03.680 --> 0:23:07.720 nets to shorter work weeks and faster electrical grid development. 0:23:07.760 --> 0:23:08.040 For more. 0:23:08.040 --> 0:23:11.040 Open AI's chief Global Affairs Officer, Chris Lane is with 0:23:11.160 --> 0:23:14.720 us here on Bloomberg Tech. I mean they are proposals, they. 0:23:14.600 --> 0:23:16.240 Are not formal proposals. 0:23:16.480 --> 0:23:18.679 But what I'm trying to understand with this, Chris, if 0:23:18.680 --> 0:23:22.200 we get the idea is how everyday people would participate 0:23:22.240 --> 0:23:27.080 in it. Who enacts it Open AI or government? But 0:23:27.720 --> 0:23:31.760 you're talking about people whose lives are impacted themselves by 0:23:31.800 --> 0:23:33.480 AI participating in it. 0:23:33.560 --> 0:23:34.080 Explain it. 0:23:34.680 --> 0:23:36.600 Yeah, that's exactly right. Let me take a step back 0:23:36.800 --> 0:23:40.240 and Caroline, thanks for having me so first and foremost 0:23:40.280 --> 0:23:43.359 with this document. Really reflects is the work and thinking 0:23:43.880 --> 0:23:47.160 of open AIS researchers, the folks who are really building 0:23:47.240 --> 0:23:51.640 and innovating this AI technology, and I think they understand 0:23:51.680 --> 0:23:54.919 and recognize that this is technology that's on power with 0:23:55.160 --> 0:23:59.000 historic general purpose technologies are the past that weel, the 0:23:59.080 --> 0:24:03.280 printing press, combustion engine, electricity, you know, each of those 0:24:03.560 --> 0:24:08.560 ultimately drove the human condition forward by driving economic progress. 0:24:09.160 --> 0:24:11.159 But every time one of these technologies came along, there 0:24:11.240 --> 0:24:14.399 was obviously challenges they came with it. And so what 0:24:14.480 --> 0:24:16.880 this document really is attempting to do is to put 0:24:16.920 --> 0:24:20.360 out some concepts and ideas that are really as transformative 0:24:20.760 --> 0:24:24.520 as the actual underlying technology. And so it's divide into 0:24:24.560 --> 0:24:27.400 two sections. One section really deals with an open economy, 0:24:27.400 --> 0:24:29.760 which is what you are talking about. How do we 0:24:29.760 --> 0:24:32.680 make sure AI is free, fair safe, How can people 0:24:32.680 --> 0:24:35.639 participate as much as possible? And you know, the Software 0:24:35.640 --> 0:24:37.840 and Wealth Fund idea, you know, is something that we 0:24:37.920 --> 0:24:41.560 really took from what we had seen in Alaska with 0:24:41.640 --> 0:24:44.840 the Alaska Permanent Fund, where the entire population of Alaska 0:24:44.840 --> 0:24:48.480 gets to participate in the economics of the fossil fuel 0:24:48.520 --> 0:24:52.280 extraction in Alaska. But ultimately there's a whole range of ideas. 0:24:52.280 --> 0:24:54.040 One of the I think at the core of all 0:24:54.080 --> 0:24:58.040 of this, though particularly on the economic opportunity piece, is 0:24:58.080 --> 0:25:00.919 the understanding that AI needs to be understood as a 0:25:01.040 --> 0:25:04.560 right that everyone in this country, everyone in the world, 0:25:04.840 --> 0:25:08.320 has at least the opportunity to be able to participate in. 0:25:08.400 --> 0:25:09.920 And that's really what's fun of this. 0:25:10.960 --> 0:25:14.080 I mean, Chris, a public or sovereign wealth fund is 0:25:14.080 --> 0:25:18.240 a very specific proposal. Have you discussed that idea with 0:25:18.320 --> 0:25:22.520 anyone within the administration? Who within the administration have you 0:25:22.560 --> 0:25:23.240 discussed that with? 0:25:24.119 --> 0:25:25.920 Yeah, I'm not going to get into specific names, which 0:25:25.920 --> 0:25:28.520 may be a shock to you, but we have certainly 0:25:28.520 --> 0:25:32.399 had those conversations with folks both in the administration. You 0:25:32.440 --> 0:25:36.119 obviously have the Trump Accounts, which is a version of 0:25:36.200 --> 0:25:38.920 some kind of a fund. I think in the last 0:25:38.920 --> 0:25:41.800 two or three weeks, I've probably met with a dozen 0:25:41.880 --> 0:25:45.119 two dozen actually, as I think about it, members of 0:25:45.119 --> 0:25:47.840 the United States Senate where we've been talking about these 0:25:47.880 --> 0:25:50.960 types of concepts, And I think what's really going on 0:25:51.240 --> 0:25:54.960 right now is that there is a growing awareness from policymakers, 0:25:54.960 --> 0:26:00.120 particularly in Washington, DC, of just how fast this technology 0:26:00.280 --> 0:26:04.240 is accelerating, the scale that it's going to be impacting 0:26:04.720 --> 0:26:07.920 all of us, and an interest and desire to really 0:26:08.119 --> 0:26:11.159 up level the nature of the policy conversations. You know, 0:26:11.240 --> 0:26:14.440 to date, the conversations have really been almost binary. On 0:26:14.440 --> 0:26:17.520 one hand, there is, you know, an approach, keep your 0:26:17.520 --> 0:26:20.359 hands off, don't worry, everything's going to be great. On 0:26:20.400 --> 0:26:23.360 the other possible extreme, there is the doomer view, which 0:26:23.400 --> 0:26:26.159 is that this is technology that's so powerful only a 0:26:26.200 --> 0:26:29.680 small number of people should control it. We're really trying 0:26:29.680 --> 0:26:31.680 to put out a different approach, and this approach is 0:26:31.720 --> 0:26:34.400 based on actually offering solutions that are going to meet 0:26:34.400 --> 0:26:38.080 the technology where the technology is, but doing it in 0:26:38.080 --> 0:26:40.760 a way that's inherently small de democratic, working through the 0:26:40.760 --> 0:26:44.639 democratic process to actually identify the ideas to will allow 0:26:44.680 --> 0:26:48.800 this technology to benefit as many people as possible. And 0:26:48.840 --> 0:26:51.240 that's really what we're trying to put out here today. 0:26:51.280 --> 0:26:54.360 And this is a conversation starter, as you were alluding to. 0:26:54.920 --> 0:26:57.880 We don't pretend to have all the answers. Certainly people 0:26:58.040 --> 0:27:01.199 have smarter ideas, people will pressure test these, but we 0:27:01.280 --> 0:27:03.800 do think we need to open up that proverbial Overton 0:27:03.880 --> 0:27:07.439 window so that we begin having these conversations now, so 0:27:07.480 --> 0:27:09.560 that we can identify the solutions quickly. 0:27:09.720 --> 0:27:14.160 Amount of the now is interesting. Was the now prompted 0:27:14.200 --> 0:27:17.600 by this growing awareness that this isn't very popular with 0:27:17.640 --> 0:27:21.000 the general public right now, or is it now because 0:27:21.320 --> 0:27:24.000 you've got something coming, The models are updating, an IPO 0:27:24.080 --> 0:27:26.360 is on the diverge, and therefore you need to get 0:27:26.359 --> 0:27:27.880 ahead of the policy perspective too. 0:27:28.560 --> 0:27:32.959 It's really the ladder and not the former. And it's 0:27:33.000 --> 0:27:34.960 certainly when you talk about and you look at the 0:27:35.000 --> 0:27:38.520 underlying data, those who use AI tend to have a 0:27:38.640 --> 0:27:41.840 pretty positive to very positive perspective on it. And you know, 0:27:41.960 --> 0:27:45.560 we're nearing a billion folks who are using this on 0:27:45.600 --> 0:27:48.160 a regular basis, so it's more and where people use AI, 0:27:48.640 --> 0:27:52.080 obviously perceptions of it understand how it's can to impact education, healthcare, 0:27:52.119 --> 0:27:56.160 their daily lives grows. But this is really at the core, 0:27:56.240 --> 0:27:59.000 and again this came from our researchers who are really 0:27:59.119 --> 0:28:02.760 understanding where technology is going and how quickly it's moving 0:28:02.800 --> 0:28:06.159 in that direction that we do need to begin to 0:28:06.200 --> 0:28:10.000 identify those ideas, those solutions, those concepts that are going 0:28:10.040 --> 0:28:12.040 to meet the technology where it is. And I've said this, 0:28:12.119 --> 0:28:15.200 but Chris, technology is transformative. We're going to need policy 0:28:15.280 --> 0:28:18.000 ideas are equally transformative. And if I could, I mean 0:28:18.000 --> 0:28:21.199 maybe an analogy here is the New Deal. And I 0:28:21.200 --> 0:28:23.000 don't mean the New Deal in a sense that we 0:28:23.080 --> 0:28:26.119 believe that there's big government solutions for this. But what 0:28:26.200 --> 0:28:31.440 the New Deal ultimately recognized was that as technology drove industrialization, 0:28:32.040 --> 0:28:34.679 there really needed to be a calibration or perhaps a 0:28:34.720 --> 0:28:39.320 recalibration between the allocation of capital and labor to make 0:28:39.320 --> 0:28:42.000 sure that the social contract was really in balance. 0:28:42.200 --> 0:28:44.920 And you want labor to what we're thinking about it. 0:28:45.080 --> 0:28:45.920 I'm sorry, you. 0:28:45.800 --> 0:28:47.680 Want labor to have more of a voice, Chris. And 0:28:47.680 --> 0:28:50.160 what's interesting is others are speaking to this too. Jamie 0:28:50.240 --> 0:28:54.120 Diamond putting out his letter to shareholders today also talking 0:28:54.240 --> 0:28:56.840 about his view that this is moving quickly, it could 0:28:56.840 --> 0:29:00.959 eliminate some jobs and his therm has got definitive plans 0:29:00.960 --> 0:29:03.560 on how we can support and redeploy our affected workforce. 0:29:03.840 --> 0:29:06.120 How is other business going to play a role, Chris? 0:29:06.160 --> 0:29:09.479 And also what are the governments doing? You look at 0:29:09.480 --> 0:29:12.360 this from a global perspective, Where is doing this right 0:29:12.960 --> 0:29:13.640 versus the act? 0:29:14.760 --> 0:29:16.760 It's a great question, and I think you can see 0:29:16.760 --> 0:29:20.040 interesting pockets around the world. You know, when I travel 0:29:20.200 --> 0:29:23.880 to Asia, a Japan or a Korea, you see a 0:29:23.920 --> 0:29:29.560 real focus on driving up AI literacy, raising the amount 0:29:29.560 --> 0:29:32.080 of people in those countries who actually understand how to 0:29:32.200 --> 0:29:34.600 use AI. I think Japan has a goal of eighty 0:29:34.600 --> 0:29:38.280 percent of its country or graduating students literate by twenty thirty. 0:29:38.320 --> 0:29:41.160 You go to places like Estonia, which has always been 0:29:41.200 --> 0:29:45.320 a digital forward country, they're building AI into their actual 0:29:45.360 --> 0:29:48.600 government infrastructure. A Greece, We've spent a lot of time 0:29:48.600 --> 0:29:51.000 with the Prime Minister of Greece in his government. He's 0:29:51.040 --> 0:29:54.720 in the process of building AI into their public education system, 0:29:55.160 --> 0:29:58.840 and so you're seeing pockets of this. But again, I 0:29:58.840 --> 0:30:02.120 think part of what's bah behind this release of this 0:30:02.200 --> 0:30:05.600 particular document is our belief that we really do need 0:30:05.640 --> 0:30:08.160 to scale up the kinds of conversations that are taking 0:30:08.200 --> 0:30:11.920 place so that we're actually able to meet this technology 0:30:11.960 --> 0:30:13.920 where it is and moreover, where it's going. 0:30:15.040 --> 0:30:17.800 Chris, there's been some reporting from the Information that your 0:30:17.880 --> 0:30:22.240 CFO Sarah Fryer has some concerns about the spending plan 0:30:22.320 --> 0:30:25.160 over the next few years and the reality of a 0:30:25.200 --> 0:30:29.120 timeline to IPO this year, in disagreement with Sam Altman, 0:30:29.200 --> 0:30:33.160 your CEO. The report also details that Sarah Fryer was 0:30:33.200 --> 0:30:37.320 excluded from some finance or investor meetings as a result 0:30:37.360 --> 0:30:38.200 of that disagreement. 0:30:38.200 --> 0:30:39.160 What can you tell us please? 0:30:40.080 --> 0:30:42.520 So, first of all, I'm actually blessed in privilege to 0:30:42.560 --> 0:30:46.160 work with an incredible team, not just in terms of 0:30:46.160 --> 0:30:50.680 the talent, but how well everyone really works together. Perhaps 0:30:50.720 --> 0:30:55.000 the greatest validation of both the team are researchers and 0:30:55.080 --> 0:30:58.400 really our overall strategy is that last week, as you 0:30:58.480 --> 0:31:01.960 all covered right, we announced the single largest raise in 0:31:02.080 --> 0:31:05.080 history one hundred and twenty two billion dollars. And at 0:31:05.120 --> 0:31:07.520 the core of that I think was the validation of 0:31:07.560 --> 0:31:12.080 our of our focused or really laser focused strategy, which 0:31:12.120 --> 0:31:15.960 is on compute. Compute is really Sam's insight. He deserves 0:31:16.080 --> 0:31:18.360 enormous credit for this. He was there long before anyone 0:31:18.360 --> 0:31:21.560 else that it is the most finite and most precious 0:31:21.600 --> 0:31:24.680 resource when it comes to the intelligence age, and we 0:31:24.720 --> 0:31:26.600 have focused a lot of our work on making sure 0:31:26.640 --> 0:31:29.440 that we have access to that compute. That compute drives 0:31:29.480 --> 0:31:33.000 a flywheel. Right, for every quantum of compute we get, 0:31:33.080 --> 0:31:35.920 we effectively get a three x in revenue, and it 0:31:35.960 --> 0:31:39.200 works the following way. Compute drives innovation. When our researchers 0:31:39.240 --> 0:31:42.720 do that then leads to more tools. Those tools lead 0:31:42.760 --> 0:31:45.360 to more users. Right, we were the first to ten million, 0:31:45.680 --> 0:31:47.200 first one hundred million approaching. 0:31:51.560 --> 0:31:56.200 I think we've looked one hundred approaching. Chris, You're fine. 0:31:56.240 --> 0:31:58.280 Your your zoom froze for a moment there, But I'm 0:31:58.280 --> 0:32:00.560 going to go back to my question. Sarah I was 0:32:01.000 --> 0:32:04.360 or was not excluded from meetings because of a disagreement 0:32:04.720 --> 0:32:06.120 on strategy with Sam Oltman. 0:32:06.720 --> 0:32:09.040 We just raised one hundred and twenty two billion dollars 0:32:09.040 --> 0:32:11.200 and Sarah Fryar was at the center of all of 0:32:11.200 --> 0:32:15.320 those meetings, pulling all of those conversations together. It's awesome 0:32:15.320 --> 0:32:18.760 to see the teamwork that exists between her Sam Fiji, 0:32:19.320 --> 0:32:22.720 you know, our head of applications, and as I said, 0:32:23.160 --> 0:32:25.680 I get to work with a dream team in terms 0:32:25.720 --> 0:32:29.040 of talent and how well everyone works together. And again, 0:32:29.160 --> 0:32:31.600 one hundred and twenty two billion dollars, it's not the 0:32:31.640 --> 0:32:34.160 amount of money, though that is a large amount of money. 0:32:34.520 --> 0:32:36.400 It is the fact that you've had probably one of 0:32:36.400 --> 0:32:39.040 the most impressive cap tables in the world. Take a 0:32:39.080 --> 0:32:41.200 look at our business strategy, take a look at our leadership, 0:32:41.240 --> 0:32:44.160 take a look at our researchers, and really give us 0:32:44.200 --> 0:32:46.640 a huge vote of confidence. I mean, think about where 0:32:46.640 --> 0:32:49.280 we are from a revenue perspective in twenty twenty four, 0:32:49.320 --> 0:32:51.440 I'm doing this from kind of I think we had 0:32:51.440 --> 0:32:53.680 a billion dollars in revenue a quarter. We're now doing 0:32:53.720 --> 0:32:56.320 two billion dollars in revenue a month. I mean, you 0:32:56.400 --> 0:32:58.960 just haven't seen growth numbers like that historically. 0:32:59.120 --> 0:33:01.880 Let's talk about the time, because it's got bigger and 0:33:01.920 --> 0:33:04.400 that has been reshuffling, and our thoughts go to those 0:33:04.400 --> 0:33:06.080 with health issues, particularly fujis. 0:33:06.120 --> 0:33:07.000 She takes a step back. 0:33:07.080 --> 0:33:12.640 Chris, but TIVYPN if that's coming under your leadership, why I'm. 0:33:12.440 --> 0:33:15.120 So excited for this, Caroline, I am so excited for this. 0:33:16.360 --> 0:33:17.040 I'm excited for. 0:33:17.000 --> 0:33:20.760 It for two reasons. On one hand, you know, these 0:33:20.800 --> 0:33:24.120 guys Geordie and John and their whole team do as 0:33:24.200 --> 0:33:28.400 good a job as anyone out there and unpacking the 0:33:28.440 --> 0:33:33.560 why and the how behind technology and explicitly AI I 0:33:33.560 --> 0:33:35.960 think folks come on to other media outlets. I mean, 0:33:36.000 --> 0:33:38.200 you guys do an incredible job of breaking news and 0:33:38.200 --> 0:33:41.080 scoopy news. What these guys do is really break down 0:33:41.120 --> 0:33:44.840 ideas and scoop out what's behind those ideas and at 0:33:44.840 --> 0:33:46.560 a time, and you know, this even relates to the 0:33:46.560 --> 0:33:48.800 beginning of this conversation on the document that we put 0:33:48.800 --> 0:33:50.880 out today at a time when we really need to 0:33:50.880 --> 0:33:55.160 be scaling how the world understands AI. These folks do 0:33:55.280 --> 0:33:56.920 one of the best jobs out there. We want to 0:33:56.960 --> 0:34:00.440 give them the resources that their audience grows. This second 0:34:00.480 --> 0:34:04.520 point here is that I'm able to bring in house really, 0:34:04.760 --> 0:34:08.560 in my view, what is the leading agency when it 0:34:08.600 --> 0:34:13.480 comes to being content forward and digital first. You know 0:34:13.520 --> 0:34:15.000 a lot of analogies that have been used. I mean, 0:34:15.000 --> 0:34:18.759 Bloomberg is obviously owned by a financial services company and 0:34:18.800 --> 0:34:21.759 then has a media entity. In terms of you know 0:34:21.800 --> 0:34:24.440 analogies out there, I think there's actually a different analogy 0:34:24.440 --> 0:34:26.920 here that's a little bit more applicable, and that as 0:34:26.960 --> 0:34:30.080 you think about Apple under Steve Jobs in the nineteen 0:34:30.080 --> 0:34:33.480 eighties and early nineties, they actually brought in Shiat Day, 0:34:33.520 --> 0:34:36.879 which had been their outside marketing agency, and created something 0:34:36.920 --> 0:34:39.920 called the Apple Media Lab, and it really became a 0:34:40.000 --> 0:34:44.160 model for how to build in house marketing in an 0:34:44.200 --> 0:34:46.919 age when a lot of that marketing was done through 0:34:47.160 --> 0:34:49.640 what we are now called traditional advertising. We're in a 0:34:49.680 --> 0:34:52.279 different age today. Digital is at the center of the 0:34:52.320 --> 0:34:56.279 conversation and I see this as analogous to that but 0:34:56.400 --> 0:34:58.759 for the digital age we're bringing in really I think 0:34:58.800 --> 0:35:00.839 the best agency in the We're ad to help us 0:35:00.880 --> 0:35:03.319 do the best job we possibly can do as we 0:35:03.320 --> 0:35:06.680 could either grow in terms of how we market and communicate. 0:35:06.719 --> 0:35:10.320 So I'm totally punk for it. That's really excited when. 0:35:10.160 --> 0:35:12.920 You came on to talk about that communication, that potential 0:35:12.920 --> 0:35:15.680 of policy initiatives as well, Chris Lahne. We always wish 0:35:15.719 --> 0:35:17.800 we had another ten to fifteen minutes with you, Chrystalahane. 0:35:18.000 --> 0:35:20.920 I thought we were going to talk about the night. 0:35:21.719 --> 0:35:24.719 Next time we'll go affair for that, Affairs Officer. We 0:35:24.800 --> 0:35:27.640 so appreciate you tuning in today and joining us. I mean, 0:35:27.640 --> 0:35:30.600 while coming up a new show, well, it's making fun 0:35:30.800 --> 0:35:33.319 at the Silicon Valley so called bubble. We sit down 0:35:33.360 --> 0:35:35.000 with the creator and start of the new AMC show, 0:35:35.080 --> 0:35:37.080 The Audacity. As a Blueberg tech. 0:35:47.960 --> 0:35:53.719 Genius is not about figuring out the solution, It's about 0:35:53.760 --> 0:35:55.000 being unhinged. 0:35:56.040 --> 0:36:00.640 To do something outrageous with it. Fear in p innovation. 0:36:01.680 --> 0:36:05.400 I call that self police brutality. Tech lives matter exactly. 0:36:06.480 --> 0:36:08.759 I was a bit of the trailer for The Audacity, 0:36:09.160 --> 0:36:12.080 so you shall I say dark comedy coming to AMC, 0:36:12.120 --> 0:36:14.879 said inside the bubble of Silicon Valley, please to say 0:36:14.880 --> 0:36:17.239 the show's executive producer, don't think that says with us 0:36:17.239 --> 0:36:19.319 as well as one of the stars, Billy Magnuson, who 0:36:19.360 --> 0:36:21.120 had slightly longer locks. 0:36:21.160 --> 0:36:23.799 Great to have you, denti On, Thank you so much. 0:36:23.960 --> 0:36:26.319 Let's poke some fun or let's have some reality check 0:36:26.320 --> 0:36:29.600 as well. What a time to be writing about what 0:36:29.680 --> 0:36:32.160 maybe you're presenting as masters of the universe in some 0:36:32.239 --> 0:36:33.919 way here? How did this come to bear? 0:36:34.000 --> 0:36:35.399 How relevant is it for our time? 0:36:36.000 --> 0:36:38.719 I think it's extremely relevant, But it is one of 0:36:38.719 --> 0:36:41.520 these funny things with television. You rate it a year 0:36:41.640 --> 0:36:44.879 or so before it actually airs, so you're guessing at 0:36:44.920 --> 0:36:49.759 what might be relevant. Uh, and it's a difficult thing 0:36:49.800 --> 0:36:52.200 to chase. Obviously with tech, it's just moving way too 0:36:52.239 --> 0:36:55.120 fast to try to anticipate what the next thing is 0:36:55.120 --> 0:36:58.040 going to be. I think we managed to do that. 0:36:58.239 --> 0:37:01.040 It's kind of like sometimes the Defense Department brings in 0:37:01.080 --> 0:37:05.000 screenwriters to say, like, would what would a great weapon be? 0:37:05.239 --> 0:37:06.800 That of the future. 0:37:07.680 --> 0:37:09.200 In a lot of ways, that's what we did in 0:37:09.320 --> 0:37:11.719 terms of like where we thought tech was going. The 0:37:11.719 --> 0:37:16.960 therapy bought things like even aspects that were major news 0:37:16.960 --> 0:37:20.480 items like what happened with the VA and Doge and 0:37:20.520 --> 0:37:23.399 everything like that is a major story point for us, 0:37:23.480 --> 0:37:27.240 but we wrote it before that actually happened. 0:37:27.440 --> 0:37:28.920 Life imitating h indeed. 0:37:29.560 --> 0:37:32.600 But it was interesting is on the X Prize actually 0:37:32.640 --> 0:37:34.239 is going out there at the moment wanting people to 0:37:34.239 --> 0:37:37.560 come up with more positive views of how technology is 0:37:37.600 --> 0:37:39.360 going to change because they want the next phone in 0:37:39.400 --> 0:37:41.759 the way that was inspired by Star Trek. But for you, 0:37:42.040 --> 0:37:43.200 how did you get into character? 0:37:43.239 --> 0:37:44.480 How did you think about. 0:37:44.200 --> 0:37:49.120 This tension that we have of utopia versus well dystopia. 0:37:49.280 --> 0:37:50.840 Oh that's quite interesting. 0:37:50.960 --> 0:37:53.759 You know, basing as an actor, you know, you take 0:37:53.800 --> 0:37:55.279 in you decipher what you see out there. 0:37:55.400 --> 0:37:57.360 We know all the people on the headlines. We know 0:37:57.480 --> 0:38:00.440 who is in the tech Titans of who are you 0:38:00.520 --> 0:38:01.120 most fascinating? 0:38:01.480 --> 0:38:03.359 All of them to tell you too, I don't want 0:38:03.360 --> 0:38:05.279 to put names out there, but we know who they are. 0:38:05.360 --> 0:38:06.840 And then you just take the good. 0:38:06.680 --> 0:38:08.239 The bad, the ugly, and then you try to build 0:38:08.239 --> 0:38:11.400 a character through all that and make this milange with 0:38:11.440 --> 0:38:14.279 a character that I was like, Okay, what's interesting to me? 0:38:14.400 --> 0:38:18.040 What's scary to me? Yeah, it's just they're out there, 0:38:18.080 --> 0:38:19.120 we see them, we know who we. 0:38:19.120 --> 0:38:21.640 Are and the best part about Jonathan Glatz are making 0:38:21.680 --> 0:38:22.200 the story. 0:38:22.400 --> 0:38:23.080 Yeah, there's the. 0:38:23.040 --> 0:38:26.440 Tech Titans, but Duncan Park is right under them, and 0:38:26.480 --> 0:38:28.279 he is hungry for it. And it just kind of 0:38:28.280 --> 0:38:31.560 shows a little bit the toxic nature that can seep 0:38:31.560 --> 0:38:34.640 into these guys who probably genuinely when they started they 0:38:34.640 --> 0:38:38.200 had hope and had hoped to build something positive for 0:38:38.280 --> 0:38:41.920 the world, and then greed corruption all the beautiful things 0:38:42.239 --> 0:38:44.920 and we see out there seeps in so beautiful. 0:38:45.440 --> 0:38:47.839 Yeah, And I think it was important also for there 0:38:47.880 --> 0:38:51.520 to be for him to be a wanna be Titan, 0:38:51.680 --> 0:38:55.520 for that desperation to be there to fuel the story, 0:38:55.719 --> 0:39:01.000 but also to not necessarily be influent by the fame 0:39:01.120 --> 0:39:04.680 and the spotlight that the people at the very top 0:39:04.719 --> 0:39:09.400 of the ladder. We see them be like rock stars, 0:39:09.680 --> 0:39:13.640 and I feel like that desire to be amongst them 0:39:13.800 --> 0:39:17.160 it was so important, but not actually being one of 0:39:17.200 --> 0:39:18.520 them was was. 0:39:19.360 --> 0:39:21.960 I guess it's a fun world he's created. Actually it's not. 0:39:22.040 --> 0:39:24.359 It's just again, our job is to tow a little 0:39:24.360 --> 0:39:25.840 bit of a early the reality. 0:39:25.880 --> 0:39:28.160 Oh hey, I hear really no, I know you don't 0:39:28.160 --> 0:39:31.120 want to name names, right, So your character is an 0:39:31.160 --> 0:39:33.360 audacious data mining CEO. 0:39:33.520 --> 0:39:37.760 I can tell you. 0:39:35.960 --> 0:39:39.160 Decade that's like the or well industry. 0:39:39.400 --> 0:39:41.360 So how do you prepare for that character? 0:39:41.520 --> 0:39:44.759 So there are some real world examples out there of 0:39:44.920 --> 0:39:46.400 the audacious. 0:39:45.800 --> 0:39:50.040 Data mining CEO. Go through the process, the process of it. 0:39:50.760 --> 0:39:53.719 Honestly, it's just looking and regarding what's out there, and 0:39:53.760 --> 0:39:56.560 then you slowly just pull back each little layer of 0:39:56.600 --> 0:39:59.359 it and you make a beautiful dish out of it. 0:39:59.400 --> 0:40:00.680 And I think that that's the fun part. 0:40:00.760 --> 0:40:04.080 Again, the world was created in Jonathan Glatter's mind, and 0:40:04.160 --> 0:40:06.759 like to have one of the most profound writers of 0:40:06.800 --> 0:40:07.440 our time. 0:40:07.440 --> 0:40:08.520 And I'll quote me on that. 0:40:08.600 --> 0:40:12.799 I think he is absolutely exceptional. That playground then is 0:40:12.840 --> 0:40:15.760 created for me just to dance on, and I couldn't 0:40:15.760 --> 0:40:18.319 be more grateful to be a collaborator with this fine 0:40:18.360 --> 0:40:19.480 gentleman to my right. 0:40:20.000 --> 0:40:24.680 Likewise, Jonathan, I want to respect the specifics of the 0:40:24.680 --> 0:40:28.560 audacity and the distinction in genre almost but I came 0:40:28.600 --> 0:40:31.880 to San Francisco in twenty eighteen with several seasons of 0:40:31.920 --> 0:40:35.520 Silicon Valley under my belt, right, and that show so 0:40:35.719 --> 0:40:39.520 closely aligned with the culture satirical, poked fun at. 0:40:39.400 --> 0:40:40.399 At what it is to be at. 0:40:40.480 --> 0:40:43.640 Maybe the lower end of the spectrum, the startup, small scale, 0:40:43.680 --> 0:40:47.400 early stage. How conscious of that were you that that 0:40:47.600 --> 0:40:51.480 exists out there, and how much you wanted Audacity to 0:40:52.360 --> 0:40:55.839 be representative of all of the capital that's here, intellectual 0:40:55.880 --> 0:40:59.200 and financial capital that underpins the technology industry. 0:41:00.160 --> 0:41:03.280 That I was a huge fan of Silicon Valley myself. 0:41:03.280 --> 0:41:10.480 It's brilliant, brilliant satire. It definitely is about a time 0:41:11.600 --> 0:41:14.040 in the Valley that was a little bit more optimistic, 0:41:14.120 --> 0:41:19.839 the garage incubator type of culture, and that that striving 0:41:20.400 --> 0:41:25.040 to uh, you know, make it to a place, which is, 0:41:25.160 --> 0:41:27.600 as I said before, is part of what what Duncan 0:41:27.680 --> 0:41:30.920 is is going through. But Duncan already Duncan Park, the 0:41:31.200 --> 0:41:39.239 character that Billy plays so brilliantly. He he He had 0:41:39.239 --> 0:41:42.360 a company prior to this called Fathah, which was about 0:41:42.440 --> 0:41:47.000 bringing people together and you know, they would trading candles 0:41:47.000 --> 0:41:49.800 and canoes and stuff like that. And then he became 0:41:49.840 --> 0:41:54.920 a data merchant, h third party type of uh data merchant. 0:41:55.440 --> 0:41:59.960 And I think that what we're showing in our you know, 0:42:00.160 --> 0:42:02.680 it's a very different show. It's a much more of 0:42:02.719 --> 0:42:07.239 a families interacting as a psychiatrist is the second lead 0:42:07.760 --> 0:42:13.600 of the show. But the idea that everybody back in 0:42:13.640 --> 0:42:17.560 the day was truly optimistic in a genuine way, that 0:42:17.600 --> 0:42:19.359 they were going to be bringing people together. They're going 0:42:19.400 --> 0:42:24.560 to lower the barriers in terms of tolerance and people 0:42:24.560 --> 0:42:29.839 communicating together, and the idea of that information is going 0:42:29.880 --> 0:42:33.759 to be something that's reliable and accessible, and that all 0:42:33.840 --> 0:42:36.359 kind of went in the opposite direction for the most part, 0:42:36.440 --> 0:42:39.759 for the most part, right, But they made a lot 0:42:39.800 --> 0:42:42.239 of money doing it, and so it was kind of like, wait, 0:42:42.320 --> 0:42:45.120 are we We're sort of tearing at society in a 0:42:45.160 --> 0:42:49.919 lot of ways here, and communication has been completely bifurcated 0:42:49.920 --> 0:42:53.640 and people are don't seem to be any more tolerant, 0:42:53.920 --> 0:42:56.319 let alone all the other things that they that they 0:42:56.360 --> 0:42:59.200 talked about. But we're making so much money doing it. 0:43:00.280 --> 0:43:01.680 This is what people want, you know. 0:43:02.000 --> 0:43:06.319 And so that sort of cynicism and that, I think 0:43:06.360 --> 0:43:12.360 it just imbued a different chapter in the Silicon Valley story. 0:43:12.800 --> 0:43:17.160 And hopefully there's a chapter coming up. I don't know when, 0:43:17.600 --> 0:43:20.520 but hopefully there will be one where they realize that 0:43:20.560 --> 0:43:23.880 the power that they that they have is also the 0:43:23.880 --> 0:43:28.640 power to do Good's. 0:43:27.040 --> 0:43:30.320 The characters He's created, it is the culture you're examining 0:43:30.320 --> 0:43:33.680 the culture that lives inside the Silicon Valley now, and 0:43:33.719 --> 0:43:36.840 I love that that dynamic of the whole project. I 0:43:36.880 --> 0:43:38.560 feel lucky to be a part of this project. 0:43:38.600 --> 0:43:42.080 Honestly, gentlemen, we appreciate having you here on Bloomberg Tech. 0:43:42.120 --> 0:43:43.560 And I think I'm right and saying it's already been 0:43:43.600 --> 0:43:45.080 renewed for a second season as well. 0:43:45.120 --> 0:43:46.279 The Audacity premier. 0:43:46.040 --> 0:43:50.000 Is April twelfth on AMC Jonathan Glatzer, Billy magnuson Thank 0:43:50.000 --> 0:43:50.719 You for Coming by. 0:43:51.080 --> 0:43:52.160 NASA's Automus two. 0:43:52.080 --> 0:43:54.600 Is set to pass at the closest distance that humors 0:43:54.600 --> 0:43:57.480 have come to the lunar surface in fifty years. Seven 0:43:57.560 --> 0:44:00.319 PM New York Times tonight is the crew as it's 0:44:00.320 --> 0:44:03.040 fly by of the Moon. Let's bring in Bloomberg's Lauren 0:44:03.080 --> 0:44:06.440 Grush just back from first Florida, then Houston. 0:44:06.760 --> 0:44:09.120 Big moment seven PM. What do we need to know? 0:44:09.800 --> 0:44:12.240 There are quite a few big moments today. 0:44:12.280 --> 0:44:15.200 Actually, one thing that I'll start before even seven pm 0:44:15.400 --> 0:44:19.240 is around two pm Eastern, the crew will actually break 0:44:19.280 --> 0:44:23.480 the distance record previously set by apall of thirteen of 0:44:23.520 --> 0:44:27.120 the farthest any humans have traveled from Earth. So that 0:44:27.160 --> 0:44:29.480 will kind of be a nice little lead into the 0:44:29.520 --> 0:44:30.799 fly by, and then. 0:44:30.800 --> 0:44:34.000 Yeah, this is today is the day. What the Artemis 0:44:34.040 --> 0:44:35.280 two mission is all about. 0:44:35.360 --> 0:44:38.120 It's getting close to the Moon and being able to 0:44:38.160 --> 0:44:40.040 see the far side of the Moon, parts of the. 0:44:39.960 --> 0:44:42.359 Far side that humans have never seen before. So it's 0:44:42.360 --> 0:44:43.399 a really exciting day. 0:44:43.680 --> 0:44:46.200 And it's been so exciting to watch this minute by minute, 0:44:46.200 --> 0:44:50.120 take by take as this journey continues. Lauren, You've got 0:44:50.120 --> 0:44:53.080 some fascinating reporting on what's working well out there and 0:44:53.160 --> 0:44:54.799 also what's not working well. 0:44:55.960 --> 0:44:59.280 Right So, actually, I've been blown away by how smooth 0:44:59.320 --> 0:45:02.480 this mission has gone. Obviously, there's little glitches here and 0:45:02.520 --> 0:45:05.360 there that they'll be reporting to mission control, but overall 0:45:05.440 --> 0:45:08.320 it seems to be a relatively smooth mission. 0:45:09.280 --> 0:45:10.640 One thing that we have all. 0:45:10.440 --> 0:45:13.240 Noticed is that the biggest headache might be. 0:45:13.320 --> 0:45:14.440 The onboard toilet. 0:45:14.600 --> 0:45:17.040 So it kind of started acting up that first day 0:45:17.080 --> 0:45:19.560 of flight. They were able to fix it by helping 0:45:19.600 --> 0:45:22.839 to prime the pump, but then on the next day 0:45:22.920 --> 0:45:26.160 or a few days after, they had an issue with 0:45:26.200 --> 0:45:29.600 maybe some ice blockage from the vent line. 0:45:29.440 --> 0:45:31.120 They dump the. 0:45:30.880 --> 0:45:36.000 Contents overboard periodically, and there was kind of some blockage there, 0:45:36.239 --> 0:45:38.640 but they seem to get it working again, So it's 0:45:38.680 --> 0:45:41.719 just been it's been a nice comedic moment, you know, 0:45:41.719 --> 0:45:42.400 if that's if. 0:45:42.239 --> 0:45:44.840 The only issue is your toilet, obviously it's. 0:45:44.719 --> 0:45:48.439 Probably not something the astronauts want to be for malfunctioning, 0:45:48.520 --> 0:45:50.719 but at least that's the only thing that seems to 0:45:50.760 --> 0:45:51.640 be a real problem. 0:45:52.800 --> 0:45:56.080 Laura. It's been some beautiful writing, some incredible reporting throughout 0:45:56.080 --> 0:45:58.600 the weekend, and we so appreciate you joining us ahead 0:45:58.760 --> 0:46:01.920 of today's really important day of space ed. That does 0:46:01.960 --> 0:46:03.879 it with this edition, Boombog Tech back together again. 0:46:04.560 --> 0:46:06.600 Yeah, strong starts of the week, a lot to recap. 0:46:06.719 --> 0:46:08.960 Check out the podcast. You know exactly where to find it. 0:46:08.920 --> 0:46:12.480 On the Bloomberg terminal, as well as online on Apple, Spotify, 0:46:12.760 --> 0:46:15.320 and on iHeart. From New York and from San Francisco, 0:46:16.040 --> 0:46:17.120 this is Bloomberg Tech.