WEBVTT - Amazon's Cloud Sales Win, AMD's Disappointing AI Chip Forecast 0:00:01.080 --> 0:00:04.760 From the heart where Innovations, money and power Collie in 0:00:04.880 --> 0:00:06.400 Silicon Valley, NBN. 0:00:06.720 --> 0:00:10.760 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.520 --> 0:00:26.680 I'm Caroline Heinder Bloomberg's weltead quarters. 0:00:26.400 --> 0:00:29.240 In New York, and I met Ludlow in San Francisco. 0:00:29.400 --> 0:00:31.200 This is Bloomberg Technology. 0:00:30.760 --> 0:00:31.720 Coming up Amazon. 0:00:31.760 --> 0:00:35.480 It posts a biggest cloud sales growth in a year. 0:00:35.640 --> 0:00:37.360 That's all on AI demand details. 0:00:37.400 --> 0:00:39.159 The't com plus full. 0:00:39.040 --> 0:00:42.120 Chip coverage ahead is AMD falls after its AI chip 0:00:42.159 --> 0:00:44.320 forecast disappoints. 0:00:43.720 --> 0:00:46.320 And we sit down with the CEO of Pinterest for 0:00:46.400 --> 0:00:49.920 an exclusive interview as that revenue surge is the first 0:00:50.040 --> 0:00:51.879 let's check in on the rest of these markets and 0:00:52.240 --> 0:00:54.920 actually a little bit of nervousness, shall we say, ahead 0:00:54.960 --> 0:00:57.560 of the FAED all important two PM two thirty is when, 0:00:57.560 --> 0:01:00.000 of course j Powell comes forward with his press conference. 0:01:00.120 --> 0:01:01.880 So we're down about a ten percent, but bouncing off 0:01:01.920 --> 0:01:04.800 of our lows. But of course, more broadly, the technology 0:01:04.880 --> 0:01:06.560 drag lower by some of those earnings in the chip 0:01:06.640 --> 0:01:08.440 names and the read across we're down by two point 0:01:08.560 --> 0:01:09.040 five percent. 0:01:09.120 --> 0:01:10.360 Let's call it on the socks. 0:01:10.400 --> 0:01:12.240 I know edge you'll be digging into really what are 0:01:12.240 --> 0:01:15.640 the ultimate names that are pulling down the key chip index. 0:01:15.800 --> 0:01:17.759 But I also look at ten year yields actually catching 0:01:17.800 --> 0:01:19.600 a bid now. Earlier we saw bond sell off. 0:01:19.600 --> 0:01:21.600 Now they're catching a bid because we see the US 0:01:21.640 --> 0:01:23.959 Treasury actually isn't going to be upping its supply in 0:01:24.000 --> 0:01:27.000 the coming quarter in terms of bond auctions. That notably, 0:01:27.040 --> 0:01:28.760 we have seen some worrying signs when it comes to 0:01:28.840 --> 0:01:32.720 economic data today, Manufacturing in particular seeing a slowdown, but 0:01:32.760 --> 0:01:34.440 the price is paid still. 0:01:34.240 --> 0:01:36.319 On the upside. So we've got that issue of inflation. 0:01:36.400 --> 0:01:38.280 How much we are actually seeing a cooling or a 0:01:38.319 --> 0:01:40.959 steadying of the US economy. Remember we actually saw some 0:01:41.000 --> 0:01:43.240 weaker jobs data today as well. Moving on, have a 0:01:43.280 --> 0:01:45.320 look at what's happening in terms of you got individual 0:01:45.360 --> 0:01:49.200 movers and from a crypto perspective, and I'm looking at 0:01:49.200 --> 0:01:52.080 what's happening on the bitcoin down four point three percent 0:01:52.120 --> 0:01:54.520 on the day, We're now sub sixt fifty seven thousand 0:01:54.560 --> 0:01:57.240 dollars is where we currently trade. Maybe that's a macro picture, 0:01:57.280 --> 0:01:58.360 Maybe that's a risk off feel. 0:01:58.480 --> 0:01:59.200 What are you seeing on the. 0:01:59.160 --> 0:02:02.920 Micro Let's start with AMD. Actually, this is a big 0:02:02.960 --> 0:02:06.720 move lower in AMD despite actually upgrading their forecast for 0:02:06.840 --> 0:02:10.400 sales of AI accelerators from three point five billion to 0:02:10.520 --> 0:02:13.440 four billion. The problem was high hope, some in the 0:02:13.440 --> 0:02:16.920 street seeing or hoping for guides of eight billion dollars. 0:02:16.960 --> 0:02:20.040 We're talking about them three hundred x, which AMD is 0:02:20.080 --> 0:02:22.600 going to put out into the market to compete against 0:02:22.680 --> 0:02:26.000 Nvidia principally h two hundred. But they also sing a 0:02:26.040 --> 0:02:29.760 slowdown in gaming. Old is new, right, AMD's the name 0:02:29.800 --> 0:02:32.240 we used to talk about because you built your custom 0:02:32.360 --> 0:02:35.200 rig with AMD GPU if you want to play high 0:02:35.240 --> 0:02:37.240 performance games. We'll come back to that in just a 0:02:37.240 --> 0:02:40.679 moment with our analyst, con Jensabani, and then Amazon Amazon. 0:02:41.000 --> 0:02:42.639 Actually it's a kind of muted response. 0:02:42.639 --> 0:02:45.799 We're up two point three percent strong first quarter, tep 0:02:45.880 --> 0:02:48.160 it outlook for sales in the second quarter. But the 0:02:48.240 --> 0:02:52.240 story is AWS annual revenue run rate of one hundred 0:02:52.320 --> 0:02:53.040 billion dollars. 0:02:53.280 --> 0:02:55.080 But the devil's in the detail. 0:02:55.120 --> 0:02:58.040 And it was just one sentence from Brian Zawski, the CFO, 0:02:58.680 --> 0:03:02.600 that generative AI revenue run rate in the multiple billions 0:03:02.600 --> 0:03:04.720 of dollars, and that seems to be enough to show 0:03:04.720 --> 0:03:07.160 that AI is actually starting to show up in the financials. 0:03:07.240 --> 0:03:08.600 Let's dig into Amazon's results. 0:03:08.800 --> 0:03:11.640 After the company's cloudion, it posted it's strongest sales growth 0:03:11.639 --> 0:03:12.000 in the year. 0:03:12.160 --> 0:03:13.480 We're bloomed by Spencer Sopa. 0:03:13.560 --> 0:03:16.560 Spencer, you were on that media call with Brian Ozowski, 0:03:16.600 --> 0:03:18.320 and I think that's the focus. 0:03:17.960 --> 0:03:18.800 Here, isn't it. 0:03:18.800 --> 0:03:21.160 It's the AI is a real thing that makes real 0:03:21.200 --> 0:03:22.040 money sort of. 0:03:23.080 --> 0:03:27.720 Yeah, the profitability for AWS and the quarter was huge. 0:03:28.440 --> 0:03:31.320 You know, it accounts for less than twenty percent of 0:03:31.360 --> 0:03:35.280 all Amazon revenue, but it's like two thirds of its profit. 0:03:35.440 --> 0:03:36.760 So that was big. 0:03:36.800 --> 0:03:39.240 And then the question for the investors is, you know, 0:03:39.280 --> 0:03:41.200 what's the pace of investment going to look like and 0:03:41.680 --> 0:03:44.240 how are these margins going to look as Amazon continues 0:03:44.280 --> 0:03:47.160 to invest in new data centers to fuel this boom, 0:03:47.360 --> 0:03:50.040 and there is a little bit of just some breadcrumbs dropped. 0:03:50.080 --> 0:03:52.680 Amazon said it dropped about fourteen billion in the first 0:03:52.760 --> 0:03:54.400 quarter on data centers, and it said that'll be the 0:03:54.440 --> 0:03:56.640 low point for the rest of the year, so they're 0:03:56.640 --> 0:03:59.200 probably looking at about, you know, north of fifty billion 0:03:59.520 --> 0:04:02.920 in data center investment at least this year. 0:04:03.640 --> 0:04:06.600 Nenevertheless, managed to support that operating margin what was it, 0:04:06.640 --> 0:04:09.720 thirty seven point six percent whyer since they started disclosing 0:04:09.760 --> 0:04:12.600 what it was and breaking out AWS. But the bread 0:04:12.600 --> 0:04:14.520 and buffer that we all know Amazon for in many 0:04:14.520 --> 0:04:15.840 ways is the e commerce play. 0:04:15.960 --> 0:04:17.840 And how's the consumer looking for them right now? 0:04:18.080 --> 0:04:19.520 Yeah, that's where things were a little soft. 0:04:19.520 --> 0:04:21.919 The overall revenue guidance was a little light for the 0:04:21.960 --> 0:04:25.279 current quarter, and they said that consumers are definitely pinching 0:04:25.320 --> 0:04:29.240 their pennies there. The average order size is smaller, and 0:04:29.360 --> 0:04:32.440 so that hurts the margins of the e commerce business 0:04:32.440 --> 0:04:35.680 because if you're shipping less expensive things, it still costs 0:04:35.680 --> 0:04:37.800 the same amount to process and ship those items. So 0:04:38.880 --> 0:04:42.360 the e commerce outlook is good, just not nearly as 0:04:42.360 --> 0:04:44.920 good as AWS was, and they're definitely seeing some signs 0:04:44.920 --> 0:04:46.080 of consumer strength. 0:04:46.240 --> 0:04:48.599 We've got the Pinterest CEO coming on a little bit later. 0:04:48.640 --> 0:04:51.160 We're being asking a lot about advertising, and of course 0:04:51.200 --> 0:04:54.640 they've got a partnership with Amazon. How is prime ads looking, 0:04:54.680 --> 0:04:57.240 How is that particular part of this newer part of 0:04:57.240 --> 0:04:57.839 the business doing. 0:04:58.400 --> 0:05:00.919 So Their ad business is still strong, still predominantly the 0:05:00.960 --> 0:05:03.479 sponsored ads things that you see on the actual website. 0:05:03.600 --> 0:05:06.840 There wasn't a lot of clarity about the contribution from 0:05:06.920 --> 0:05:10.040 the video ads that they've added. Analyser estimating somewhere in 0:05:10.080 --> 0:05:12.960 the realm of I think five billion was the last 0:05:12.960 --> 0:05:16.400 I saw for the year from that business. But it's 0:05:16.440 --> 0:05:19.760 a yeah, there wasn't a lot of clarity on exactly 0:05:19.760 --> 0:05:23.760 what it's adding. An Amazon emphasized, look where we're going 0:05:23.839 --> 0:05:26.280 to be lighter on the advertising, the most other programming 0:05:26.279 --> 0:05:28.240 and television and that sort of thing. If you watch 0:05:28.279 --> 0:05:31.719 Prime Video, you'll see fewer advertisements. So they're definitely, you know, 0:05:31.839 --> 0:05:34.760 moving delicately on that new revenue source. 0:05:34.839 --> 0:05:37.320 Yeah, don't want to put us off of our watching Spencer. 0:05:37.360 --> 0:05:38.800 It's so nice to have him here in New York. 0:05:39.000 --> 0:05:41.680 Spencer sofa on all things Amazon. Meanwhile, we are sticking 0:05:41.680 --> 0:05:44.159 on this earnings. Let's break down AMD. Look, it was 0:05:44.160 --> 0:05:47.320 giving a disappointing forecast. In particular, there was sluggishness when 0:05:47.320 --> 0:05:48.800 it came to gaming demand. We want to bring in 0:05:48.839 --> 0:05:53.040 Bloemberg Intelligence Senior analyst Kunjan Sabani, And it really seems 0:05:53.040 --> 0:05:55.680 to be Q two. Everyone slightly focusing in on because 0:05:55.720 --> 0:05:56.360 Q you are not good. 0:05:58.000 --> 0:06:01.520 Yeah, exactly, I mean fundamentally the already remains intact. It's 0:06:01.600 --> 0:06:07.240 that Sentimentally, it didn't beat enough the high lofty investor expectations, 0:06:07.360 --> 0:06:10.159 especially for the GPU numbers coming into the earnings. A 0:06:10.240 --> 0:06:13.240 second point is the rest of the non AI business 0:06:13.360 --> 0:06:16.400 is growing through a persistence slump, which is being heavily 0:06:16.600 --> 0:06:18.800 on all the AI goodness, so over all at the 0:06:18.800 --> 0:06:21.599 company level, actually, the EPs numbers for twenty four and 0:06:21.640 --> 0:06:24.120 twenty four came down at had bit. That's not what 0:06:24.200 --> 0:06:27.039 you want to see from a flying AI flying high name. 0:06:27.240 --> 0:06:30.400 I was trying to unpick what Lisa Sue is saying. 0:06:31.240 --> 0:06:34.039 It seemed in the first instance she was saying AMD 0:06:34.200 --> 0:06:37.760 is supply constrained. In other words, there's great demand for 0:06:37.800 --> 0:06:41.000 the AI accelerator product, they just can't get enough of them. 0:06:41.360 --> 0:06:43.479 She data said in the call. Actually that's not the case. 0:06:44.040 --> 0:06:46.640 The full year guy doesn't factor in any supply constraint. 0:06:47.240 --> 0:06:50.800 What is the story here with demand versus supply? The 0:06:50.880 --> 0:06:53.200 mi I three hundred X clarify from. 0:06:53.120 --> 0:06:55.839 Our perspective, the demand continues to run higher. Is just 0:06:55.880 --> 0:06:59.080 supply is not binary the way people think, so they 0:06:59.120 --> 0:07:02.120 do the second quarter supply is constrained. There will be 0:07:02.160 --> 0:07:04.080 more supply coming in in three Q and four Q, 0:07:04.360 --> 0:07:06.440 and there's only so much they can ship on the 0:07:06.480 --> 0:07:08.440 second half of the year, and The second point to 0:07:08.520 --> 0:07:12.840 remember is there's all these high, crazy high expectation numbers 0:07:12.880 --> 0:07:15.520 coming from the byside, where people are going in and 0:07:15.680 --> 0:07:18.800 evaluating how much supply is coming in and multiplying that 0:07:18.880 --> 0:07:20.200 number of by based on how. 0:07:20.080 --> 0:07:21.560 Many units the MD can ship. 0:07:21.760 --> 0:07:22.920 But that's not how it works. 0:07:23.000 --> 0:07:24.960 The supply when it comes in doesn't run one hundred 0:07:24.960 --> 0:07:27.640 person utilization and yield and et cetera. So it's not 0:07:27.720 --> 0:07:29.880 a linear equation that you can extrapolate. 0:07:30.000 --> 0:07:35.240 You hear that buyside, you've got crazy high expectations. Even so, 0:07:35.280 --> 0:07:38.480 do we think that AMD gave enough evidence they will 0:07:38.480 --> 0:07:41.920 take market share from Nvidia, which is so far ahead 0:07:42.120 --> 0:07:43.600 in the AI accelerator race. 0:07:44.200 --> 0:07:48.000 We believe so, like they've showcased enough engagements both at 0:07:48.040 --> 0:07:50.760 the cloud and the enterprise customer. And the second part 0:07:50.800 --> 0:07:54.520 is more important because the next wave of increasing capex 0:07:54.640 --> 0:07:57.560 is going to come from the enterprise customers, especially in 0:07:57.600 --> 0:07:59.880 the inference where the MI three hundred sort of have 0:08:00.440 --> 0:08:02.080 a more competitive positioning. 0:08:02.600 --> 0:08:05.800 Bloomberg Intelligence Senior analyst Kunjen Sabani check out his research 0:08:06.000 --> 0:08:08.520 on the Bloomberg terminal. Let's keep a conversation going with 0:08:08.600 --> 0:08:12.640 Daniel o'reagan, Managing Director, of Global Equities at Missuo Americas. 0:08:12.720 --> 0:08:14.160 Let's start with AMD. 0:08:15.040 --> 0:08:18.520 Let's set a baseline that expectations were high, and we 0:08:18.640 --> 0:08:20.680 got a raised forecast, and it doesn't. 0:08:20.440 --> 0:08:21.520 Seem to have been good enough. 0:08:21.760 --> 0:08:22.520 Yeah, precisely. 0:08:22.560 --> 0:08:25.000 I think your previous guests did an incredible job of 0:08:25.000 --> 0:08:28.080 outlining exactly what went down. Listen results were great, they 0:08:28.080 --> 0:08:29.840 were tremendous. I think in any other tape this name 0:08:29.840 --> 0:08:32.120 would be trading a little bit higher. I just think 0:08:32.200 --> 0:08:34.760 expectations got a little ahead of themselves. So she was 0:08:34.840 --> 0:08:37.319 very prudent last night, raising GPU guides from three and 0:08:37.320 --> 0:08:40.240 a half billion to four. Again, we heard that the 0:08:40.280 --> 0:08:42.720 bus I was looking for closer to six, maybe even seven. 0:08:43.280 --> 0:08:45.040 Long story short, as we're sticking with it, we like 0:08:45.080 --> 0:08:48.160 it down here. There are other levers to pull also too. 0:08:48.400 --> 0:08:51.199 If you're a massive hyperscaler looking to secure as many 0:08:51.280 --> 0:08:54.640 chips as possible, you definitely want to diversify your offerings 0:08:54.640 --> 0:08:56.600 instead of just having all your chips in one basket 0:08:56.640 --> 0:09:00.240 with Nvidia. You think there should be other people that 0:09:00.280 --> 0:09:02.920 supply your chips, and I think AMT probably fits that bill. 0:09:03.160 --> 0:09:05.000 Can you go into the other levers that you just 0:09:05.040 --> 0:09:07.200 said that they have to pull What in particular do 0:09:07.200 --> 0:09:08.679 you want to see pulled, Daniel. 0:09:08.600 --> 0:09:09.440 That's a great question. 0:09:09.520 --> 0:09:13.680 So the gaming side was actually one lackluster area for 0:09:13.720 --> 0:09:16.200 next quarter, But I think more importantly going forward, there's 0:09:16.240 --> 0:09:19.600 potential for an enterprise refresh, especially on the back of COVID. 0:09:19.880 --> 0:09:22.160 A lot of Fortune one hundred, Fortune five hundred companies 0:09:22.200 --> 0:09:24.760 have old legacy systems that they. 0:09:24.600 --> 0:09:25.559 Have to rip and replace. 0:09:25.840 --> 0:09:27.560 That could bode well for them in the second half 0:09:27.559 --> 0:09:29.800 of twenty twenty five or even earlier twenty twenty five. 0:09:30.360 --> 0:09:33.440 Okay, interesting, I want to pivot away therefore, not just 0:09:34.200 --> 0:09:36.280 well a boy from AMD, but more broadly looking at 0:09:36.320 --> 0:09:38.120 the cloud and some of those hyper scaleres that you 0:09:38.160 --> 0:09:40.000 say are going to be the end demand for an AMD. 0:09:40.360 --> 0:09:42.800 Amazon today coming out looking really. 0:09:42.559 --> 0:09:44.439 Strong when it comes to it's aws, when it comes 0:09:44.440 --> 0:09:47.640 to its AI focus is more broadly that the level 0:09:47.640 --> 0:09:49.360 that you want to see continuing to be pulled. 0:09:49.120 --> 0:09:49.760 By any Jesse. 0:09:50.440 --> 0:09:52.800 Yeah, So that conference call last night was one of 0:09:52.840 --> 0:09:56.000 the most polish I've listened to realllly in years, maybe 0:09:56.040 --> 0:09:58.480 on the back of the Metal one from two quarters ago. 0:10:00.120 --> 0:10:03.439 She basically said that this opportunity with AI is almost 0:10:03.440 --> 0:10:05.120 as tremendous as anything he's ever seen. 0:10:05.160 --> 0:10:07.400 And they're willing to spend tens of billions of. 0:10:07.360 --> 0:10:10.560 Dollars to reap the rewards later on, and they're not 0:10:10.600 --> 0:10:13.240 afraid to spend. And I wouldn't bet against these guys. 0:10:13.320 --> 0:10:16.120 We've literally seen it for eighteen years. They identify a 0:10:16.160 --> 0:10:18.480 massive technology, they invest aggressively. 0:10:18.960 --> 0:10:20.959 Profits and margins get hit a little bit, but. 0:10:20.920 --> 0:10:24.280 Then later on profitability hockey sticks as everybody comes to 0:10:24.320 --> 0:10:26.439 realize these guys are ahead of the curve. I think 0:10:26.440 --> 0:10:28.040 the same thing's going to happen with Amazon. And I 0:10:28.080 --> 0:10:30.720 also think the spending votes very very well for the 0:10:30.760 --> 0:10:33.520 supply chain names for example, like the NVIDIAs and the 0:10:33.520 --> 0:10:35.880 AMDs of the world, because they are the arms. 0:10:35.640 --> 0:10:37.160 Providers for this AI race. 0:10:37.320 --> 0:10:39.320 So I think the journal was positive for the entire 0:10:39.320 --> 0:10:40.800 AI ecosystem. 0:10:41.040 --> 0:10:43.400 Daniel, I'm interested in that thesis. You said it was 0:10:43.480 --> 0:10:46.479 the most bullish call from Andy Jesse and Brian Azowski 0:10:46.520 --> 0:10:50.280 you've heard in some time. Was it light on details though? 0:10:50.600 --> 0:10:52.840 I mean, think about what you just said. The one 0:10:52.880 --> 0:10:55.400 thing we didn't hear is any sort of tangible number 0:10:55.440 --> 0:10:59.160 for CAPEX other than Brian saying will be meaningfully higher 0:10:59.440 --> 0:11:02.640 in twenty two money full, right. 0:11:02.760 --> 0:11:04.959 I think that's a great question, and I don't think 0:11:04.960 --> 0:11:08.560 they wanted to pigeon and pole themselves with just specifically 0:11:08.640 --> 0:11:13.040 quantifying it. The fact that they used overwhelming or significant 0:11:13.520 --> 0:11:15.280 I think that gave them room to kind of fall 0:11:15.280 --> 0:11:17.160 down later on. At the end of the day, they 0:11:17.160 --> 0:11:19.920 know that there's a massive opportunity, They're okay to spend 0:11:19.960 --> 0:11:22.720 aggressively to take advantage of that. One thing that I 0:11:22.760 --> 0:11:25.880 think that could be different this time is back in 0:11:26.000 --> 0:11:29.679 previous investment cycles, they didn't have as much profitability as 0:11:29.720 --> 0:11:34.079 they do now. Amazon has multiple mature businesses, right, It's 0:11:34.080 --> 0:11:37.200 not just retail. They have retail, they have AWS now, 0:11:37.200 --> 0:11:40.160 they have advertising, they have logistics, they have all these 0:11:40.200 --> 0:11:43.360 other profitable businesses that I hope or think that could 0:11:43.400 --> 0:11:46.480 blunt the impact of profitability. 0:11:45.920 --> 0:11:46.640 And also too. 0:11:46.760 --> 0:11:49.080 On the call, they reiterated over and over again that 0:11:49.120 --> 0:11:51.720 they think they can do both. They think they can 0:11:51.760 --> 0:11:54.960 be efficient and they think they can drive growth at 0:11:55.000 --> 0:11:57.120 the same time. Let's see if they can thread the needle. 0:11:57.120 --> 0:11:59.319 But like I said earlier, I wouldn't bet against these guys. 0:12:00.280 --> 0:12:03.640 If AWS is the cash cow and the bright spot 0:12:03.679 --> 0:12:07.560 for everyone, what's the next best thing in the multifaceted business. 0:12:07.679 --> 0:12:11.480 Daniel, that's a great question. I really don't know. 0:12:11.520 --> 0:12:15.000 I think it's AWS for now. One area that was 0:12:15.040 --> 0:12:17.520 weaker last night in terms of guidance, I don't even 0:12:17.520 --> 0:12:21.040 think really matters. They said that the European consumer was lackluster, 0:12:21.120 --> 0:12:22.280 which her top line. 0:12:22.520 --> 0:12:23.640 I don't really talk. 0:12:23.480 --> 0:12:26.320 To any investors that are concerned much about their European 0:12:26.360 --> 0:12:29.880 consumer business. So again, I think the focus is on AWS, 0:12:30.200 --> 0:12:32.760 but going a little deeper, the operating profit for their 0:12:32.800 --> 0:12:35.920 retail business was tremendous, Like this was their bread and 0:12:35.960 --> 0:12:39.199 butter ten years ago, and it's like they're growing past 0:12:39.240 --> 0:12:41.920 that now. And to AWS, I think it's just to 0:12:41.960 --> 0:12:44.760 your dispenser's point earlier, it's just going to continue to 0:12:44.880 --> 0:12:47.760 drive the bottom line and the entire ecosystem is just 0:12:47.840 --> 0:12:48.480 going to get better. 0:12:48.880 --> 0:12:53.079 And meanwhile, they're not particularly articulating CAPEX when it comes 0:12:53.080 --> 0:12:53.880 to the amount of spending. 0:12:53.880 --> 0:12:56.040 But what we can glean from Microsoft. 0:12:55.720 --> 0:12:58.800 From Amazon, from IBM, from anyone that's providing some sort 0:12:58.840 --> 0:13:01.240 of cloud offering is that they spending in this spending big. 0:13:01.880 --> 0:13:04.560 What do we therefore worry about or be optimistic about 0:13:04.559 --> 0:13:06.360 when it comes to video that's coming or the other 0:13:06.400 --> 0:13:09.599 big chip names that need this sort of exuberance to 0:13:09.640 --> 0:13:13.040 suspend the market cap that we've continued to see. 0:13:14.800 --> 0:13:15.920 You know, that's a great question. 0:13:16.240 --> 0:13:18.280 We kind of say that it's the trillion dollar question, 0:13:18.400 --> 0:13:22.000 right is how many more quarters are these AI spenders 0:13:22.040 --> 0:13:24.440 going to get the hall pass from investors and tell hey, 0:13:24.679 --> 0:13:26.520 show me the money, show me the ROI. You spend 0:13:26.520 --> 0:13:29.400 tens of billions of dollars on this AI buildout, When 0:13:29.400 --> 0:13:30.440 are we going to get paid back? 0:13:30.720 --> 0:13:31.959 The jury is still out right, we. 0:13:31.880 --> 0:13:34.120 Don't know exactly what's going to happen Jess yet. How 0:13:34.640 --> 0:13:36.720 last night Andy Jesse did say a few times that 0:13:36.760 --> 0:13:41.280 they're already seeing billions of dollars of AI related revenue 0:13:41.280 --> 0:13:44.240 on AWS, so I don't even want to say it's 0:13:44.280 --> 0:13:47.480 brings shoots, but already making a good. 0:13:46.760 --> 0:13:47.960 Headway in that segment. 0:13:48.200 --> 0:13:50.480 And if you remember last week we had amazing az 0:13:50.520 --> 0:13:53.720 your numbers, is Microsoft ajurre actually accelerated year over year 0:13:54.240 --> 0:13:55.080 on a big number. 0:13:55.280 --> 0:13:57.480 Google Cloud obviously continues to do well. 0:13:57.640 --> 0:14:00.000 So we've now heard from three of the major cloud 0:14:00.080 --> 0:14:03.160 providers through the world's biggest hyperscalers come back with really 0:14:03.200 --> 0:14:05.880 tremendous results. It's just it gets me pretty biled up 0:14:05.880 --> 0:14:06.280 on space. 0:14:07.120 --> 0:14:09.400 Daniel Reagan, thank you for being built up with us, 0:14:09.559 --> 0:14:12.640 Managing director and Global Equities over at Azooho America's great 0:14:12.679 --> 0:14:13.440 to have some time with you. 0:14:22.280 --> 0:14:23.800 Here's some news time for talking. 0:14:23.880 --> 0:14:27.280 Tech Binance founder Changpeng Jow was ordered to spend four 0:14:27.320 --> 0:14:30.800 months in prison for failures that allowed cyber criminals and 0:14:30.880 --> 0:14:35.240 terrorist groups to freely trade on the world's largest cryptocurrency exchange. 0:14:35.480 --> 0:14:37.200 The sentence was far below. 0:14:36.960 --> 0:14:39.960 The three years requested by prosecutors who had sought to 0:14:40.000 --> 0:14:43.440 make an example out of Joo to a heavily scrutinized 0:14:43.480 --> 0:14:46.920 industry which is rebounding frankly from a slew of high 0:14:46.960 --> 0:14:51.360 profile scandals. Plus, Paramount Global agreed to extend contract renewal 0:14:51.440 --> 0:14:55.160 talks with Charter Communications, the owner of CBS and MTV, 0:14:55.280 --> 0:14:58.040 is said to have extended talks with Charter, one of 0:14:58.080 --> 0:15:01.040 the largest cable TV providers, the head of last night's 0:15:01.040 --> 0:15:05.080 deadline preventing its channels from going dark on the cable service, 0:15:05.600 --> 0:15:09.000 and Tesla's pivotal partnership with Buydo in China may amount 0:15:09.120 --> 0:15:11.800 to a u turn of sorts for Elon Musk, the 0:15:11.840 --> 0:15:15.480 Tesla CEO has long claimed his company can offer self 0:15:15.560 --> 0:15:19.080 driving without HD maps, but in order to go to 0:15:19.160 --> 0:15:22.160 market with FSD in China, he had no choice but 0:15:22.280 --> 0:15:24.880 to join with a local partner for a mapping license, 0:15:25.040 --> 0:15:25.640 which was by. 0:15:25.600 --> 0:15:26.920 Do carroc Oh. 0:15:26.960 --> 0:15:29.680 Boy, let's stick with Tesla because there is so much 0:15:29.800 --> 0:15:32.360 news which ed you and team have been breaking. The 0:15:32.440 --> 0:15:37.000 company actually eliminating almost its entire supercharger organization, which is built, 0:15:37.200 --> 0:15:39.920 you know, a vast network of public charging stations that 0:15:39.960 --> 0:15:42.720 basically every major automaker is in the process of trying 0:15:42.720 --> 0:15:45.080 to tap into in the United States. We've then had 0:15:45.120 --> 0:15:47.200 breaking news that well, the head of HR is now 0:15:47.200 --> 0:15:50.440 stepping down me most Crowdrudell is with us and Craig. 0:15:50.520 --> 0:15:53.200 Let's just start on the supercharger element of this, because 0:15:53.240 --> 0:15:57.280 this has got a lot of well the auto industry worried. 0:15:57.520 --> 0:15:59.880 I'm not sure of course whether internally at Tesla they're 0:16:00.200 --> 0:16:00.640 warned too. 0:16:01.080 --> 0:16:05.200 I think it's incredible in part because to Tesla's credit, 0:16:05.320 --> 0:16:08.240 this was a fantastic business that they built over more 0:16:08.240 --> 0:16:10.640 than a decade. I think, you know, you can sort 0:16:10.640 --> 0:16:13.440 of quibble with, you know, some of the promises made 0:16:13.480 --> 0:16:17.080 and promises not necessarily kept that Musk has offered over 0:16:17.120 --> 0:16:20.000 the years. But what this company has done is built 0:16:20.240 --> 0:16:25.400 a really solid and extensive, fast, reliable charging network. And 0:16:25.440 --> 0:16:28.440 you hear that, you know, from Tesla customers all over 0:16:28.440 --> 0:16:31.320 the place, you know, when they talk about why they 0:16:31.320 --> 0:16:33.320 love their car so much. This is one of the 0:16:33.440 --> 0:16:36.800 sort of main you know, positives that that is often 0:16:36.840 --> 0:16:39.000 pointed to is that you know, when you're in need 0:16:39.040 --> 0:16:42.120 of a top up, Tesla has, you know, the charging 0:16:42.120 --> 0:16:45.240 network to support you. And so for them to you know, 0:16:45.320 --> 0:16:49.200 make this sudden decision to get rid of, as you know, 0:16:49.760 --> 0:16:52.800 roughly five hundred people, including the head of this business, 0:16:52.800 --> 0:16:55.400 who they just put forward in front of investors a 0:16:55.440 --> 0:16:58.360 little over a year ago, as you know, an example 0:16:58.400 --> 0:17:00.880 of the deep bench they have behind me as really 0:17:00.960 --> 0:17:03.000 is leading to a lot of people scratching their heads. 0:17:04.320 --> 0:17:06.720 Craig, I want to bring you some breaking news that's 0:17:06.720 --> 0:17:09.680 happened since you've set in the chair. What I'm hearing 0:17:09.920 --> 0:17:13.119 and what I've reported just now with Donna Hole Bloomberg's 0:17:13.160 --> 0:17:17.879 DNA Howe, is that Tesla's most senior HR executive, the 0:17:17.960 --> 0:17:23.760 senior director, Ali Araballo, has actually left the company. My 0:17:23.880 --> 0:17:29.080 suspicion issue was fired, but this is another example of 0:17:29.400 --> 0:17:32.960 a high profile exec departure alongside a really big wave 0:17:33.400 --> 0:17:34.000 of layoffs. 0:17:34.000 --> 0:17:35.960 So I know that you're aware of this story, just 0:17:36.000 --> 0:17:36.840 give us your reaction. 0:17:38.640 --> 0:17:41.119 I think it's it is very interesting that this makes it, 0:17:41.160 --> 0:17:44.439 you know, two and two days of major you know, 0:17:44.640 --> 0:17:48.679 departures of senior women within this organization. I think it's 0:17:48.720 --> 0:17:51.320 a company that you know, for the most part, when 0:17:51.400 --> 0:17:55.159 you do tune into these events that Tesla puts on, 0:17:55.640 --> 0:17:58.880 it is very much male dominated. And I mentioned that 0:17:58.920 --> 0:18:02.080 Investor Day in March of last year, there were sixteen 0:18:02.119 --> 0:18:05.480 executives who were trotted out along with Elon Musk. Only 0:18:05.520 --> 0:18:09.240 two of those executives were women. I also just think that, 0:18:09.320 --> 0:18:13.520 you know, this latest sort of drumbeat of news just 0:18:13.720 --> 0:18:16.119 really sort of speaks to this idea of you know, 0:18:16.400 --> 0:18:21.480 as you reported ed just last week, of chaos, right, 0:18:21.520 --> 0:18:24.640 it really seems like a chaotic moment for this company 0:18:25.520 --> 0:18:29.360 where you know, they're trying to sort of fix problems 0:18:29.359 --> 0:18:32.240 that they don't have and not addressing problems that they 0:18:32.240 --> 0:18:32.600 do have. 0:18:33.680 --> 0:18:35.920 And there are many out there that would know Elon Musk, 0:18:36.160 --> 0:18:38.360 to their mind, knows what he's doing and that the 0:18:38.400 --> 0:18:40.439 testa will come through the other side. All we can 0:18:40.480 --> 0:18:43.600 do is report what's happening inside Bloomberg's created ol. Thank 0:18:43.640 --> 0:18:46.720 you very much. Now coming out, Microsoft reveals it invested 0:18:46.760 --> 0:18:49.560 in open Ai and it fears of falling behind Google 0:18:49.760 --> 0:18:52.160 in the race for AI dominance. We're bringing that Bloomberg 0:18:52.200 --> 0:18:52.800 reporting next. 0:18:52.840 --> 0:18:54.680 Stick with us. This is Bloomberg Technology. 0:19:11.200 --> 0:19:15.480 Microsoft's motivation for investing heavily and partnering with open Ai 0:19:16.080 --> 0:19:19.440 came from a sense of falling badly behind Google. That's 0:19:19.440 --> 0:19:22.399 according to an internal email released them in the Justice 0:19:22.400 --> 0:19:25.280 Department's antitrust case against the search giant. 0:19:25.359 --> 0:19:26.359 Joining us as Bloombergs. 0:19:26.359 --> 0:19:29.440 Mike Shephard out of DC leads the coverage of politics 0:19:29.440 --> 0:19:32.639 and tech. I love these investigations because I love the 0:19:32.640 --> 0:19:34.879 paper trail, and this was a pretty juicy one to 0:19:34.920 --> 0:19:35.800 get some details on. 0:19:37.440 --> 0:19:40.879 Yes, this really was, and it provides yet another window, 0:19:41.000 --> 0:19:45.800 actually specifically into the battle between the biggest tech companies 0:19:45.960 --> 0:19:49.960 over artificial intelligence. This is such an important and emerging 0:19:50.040 --> 0:19:53.320 area for them, and such a potentially lucrative one too. 0:19:53.840 --> 0:19:56.240 We saw it show up in the earnings reports that 0:19:56.359 --> 0:20:00.960 tumbled in last week. Cloud revenue was up for Microsoft 0:20:01.000 --> 0:20:03.920 and Google in part on AI services and that helped 0:20:03.960 --> 0:20:06.480 their shares, So this is an area where they want 0:20:06.520 --> 0:20:10.280 to maintain and edge an advantage. However, it's also an 0:20:10.280 --> 0:20:14.200 area of focus for regulators and prosecutors here. It did 0:20:14.280 --> 0:20:17.720 happen to be mentioned in this antitrust case against Google, 0:20:17.960 --> 0:20:21.840 and this is where the Microsoft internal email emerged. 0:20:22.000 --> 0:20:25.200 And interestingly that it was news organizations that really pushed 0:20:25.240 --> 0:20:28.440 for this document in its reductive form to be published. Mike, 0:20:28.960 --> 0:20:31.879 we now have Thursday Friday upon us. They're going to 0:20:31.880 --> 0:20:35.879 be the closing remarks right of this overall DOJ case 0:20:35.920 --> 0:20:39.080 against alphabet Yes. 0:20:38.920 --> 0:20:39.840 That's right, Carolina. 0:20:40.320 --> 0:20:43.840 My colleague Leah Nylam will be covering that very closely 0:20:44.000 --> 0:20:45.800 to see how this is going to end up. We 0:20:45.840 --> 0:20:49.160 won't have a ruling right away in the case, probably 0:20:49.280 --> 0:20:52.879 not until the summertime here, but this is one that 0:20:52.920 --> 0:20:55.639 we're watching very closely because it is part of a 0:20:55.760 --> 0:21:01.000 series of moves by the FTC and the Justice Department, 0:21:01.000 --> 0:21:04.200 which is handling this case against the largest tech companies, 0:21:04.320 --> 0:21:08.800 questioning whether they are engaging in anti competitive practices, and 0:21:08.840 --> 0:21:10.960 they're looking at them on a series of fronts. When 0:21:10.960 --> 0:21:14.440 it comes to artificial intelligence specifically, they're concerned that they're 0:21:14.840 --> 0:21:18.560 trying to hoover up or get involved with, or lock 0:21:18.640 --> 0:21:22.320 in relationships with these startups like open Ai, like deep 0:21:22.359 --> 0:21:26.040 Mind in a way that preserves their market dominance. And 0:21:26.040 --> 0:21:30.080 they're also worried about these interlocking directorships too among these 0:21:30.119 --> 0:21:31.520 AI startups as well. 0:21:31.920 --> 0:21:34.760 UK CMA Key and I to Mike Shepard just so 0:21:34.880 --> 0:21:36.640 on the nose when it comes to Washington, we thank 0:21:36.680 --> 0:21:37.240 you so much. 0:21:45.680 --> 0:21:49.040 Welcome back to Bloomberg Technology, Ed Lovelow here in San Francisco, 0:21:49.160 --> 0:21:49.880 Alan Hid. 0:21:49.720 --> 0:21:51.560 In New York. And let's just quick check on these 0:21:51.600 --> 0:21:52.480 markets because it's. 0:21:52.320 --> 0:21:54.359 A macro day, it's a FED day, and we are 0:21:54.359 --> 0:21:57.040 therefore perhaps a little bit of cautious trading ahead of 0:21:57.040 --> 0:21:59.320 that all important two pm then two thirty pm press 0:21:59.320 --> 0:22:00.600 conference FED chair. 0:22:00.440 --> 0:22:02.720 Power're looking at the NASA currently down some six. 0:22:02.560 --> 0:22:04.680 Tenths of a percent now, and in large part is 0:22:04.720 --> 0:22:07.639 the chips that continue to fall. We'll dig into moment 0:22:07.720 --> 0:22:09.560 why I'm looking at a ten year yield that actually 0:22:09.560 --> 0:22:10.160 catches a bid. 0:22:10.160 --> 0:22:11.520 That's as the US Treasury. 0:22:11.160 --> 0:22:13.600 Says, Look, we're not going to be increasing the pace 0:22:13.600 --> 0:22:16.359 of our auctions in the following quarters. So we're seeing 0:22:16.359 --> 0:22:19.280 supply side playing to that. We're down some two basis points. 0:22:19.320 --> 0:22:21.280 Even though we are still looking at the FED, I'm 0:22:21.280 --> 0:22:23.840 looking at what's happening on bitcoin. Look, some of this anxiety, 0:22:23.880 --> 0:22:25.560 some of this risk coming off the table, some of 0:22:25.600 --> 0:22:29.000 the ETF slowing in terms of their inflows. It's just 0:22:29.000 --> 0:22:31.520 pulling us down by almost five percent. We're below that 0:22:31.720 --> 0:22:35.200 six well now below fifty seven thousand dollars mark when 0:22:35.240 --> 0:22:35.959 it comes to bitcoin. 0:22:36.040 --> 0:22:37.720 Move on some of the individual movers. 0:22:37.760 --> 0:22:39.880 Now, I talked and I pushed ahead to the fact 0:22:39.960 --> 0:22:43.960 that the chip stocks are really underwater today. Why AMD. Look, 0:22:43.960 --> 0:22:47.240 we did see that tepid forecast. The market wanted to 0:22:47.280 --> 0:22:49.200 see more when it comes to the MI three hundreds 0:22:49.240 --> 0:22:52.440 in terms of their AI focus, and well, it's hitting 0:22:52.440 --> 0:22:54.040 across some of the other big chip names. So we're 0:22:54.080 --> 0:22:56.160 off by almost nine percent, let's call it on AMD. 0:22:56.240 --> 0:22:58.600 I'm looking at Amazon, though, managing to post what is 0:22:58.640 --> 0:23:01.640 strongest quarter for adlars growth that we've seen in several years, 0:23:01.720 --> 0:23:03.320 or at least in a year. We're seeing twenty five 0:23:03.320 --> 0:23:05.680 billion dollars being brought in. We're seeing overall still the 0:23:05.840 --> 0:23:08.080 growth of one point seven percent, managing to be a 0:23:08.080 --> 0:23:11.119 relief when it comes to Amazon and strong AI focus 0:23:11.280 --> 0:23:14.560 multi billion dollar revenue run rate, and then we have Pinterest. 0:23:14.720 --> 0:23:17.080 We're up twenty one percent on the day. Ed, this 0:23:17.200 --> 0:23:19.960 is the best day since October twenty twenty for this 0:23:20.080 --> 0:23:22.359 social media name, and we've finally got back to this 0:23:22.440 --> 0:23:25.200 revenue run rate in excess of twenty percent growth. We're 0:23:25.200 --> 0:23:28.640 seeing focus on gen Z. We're seeing a focus on shoppability. 0:23:28.840 --> 0:23:31.720 We're seeing a management managing to build momentum, so say 0:23:31.720 --> 0:23:34.240 the analysts, and we're going to be digging into it 0:23:34.280 --> 0:23:34.720 in a moment. 0:23:34.760 --> 0:23:36.280 I mean that is a big move. 0:23:36.359 --> 0:23:39.200 I did not have Pinterest on my earnings BINGO cards. 0:23:39.200 --> 0:23:41.920 So let's dive deeper into Pinterest and those first quarter 0:23:42.000 --> 0:23:45.720 sales user growth with Pinterest. CEO Bill ready a bill, 0:23:45.880 --> 0:23:48.000 terrific to have you on the program. 0:23:48.400 --> 0:23:49.840 The story seems quite clear. 0:23:50.359 --> 0:23:55.000 Pinterest pushing into shopping and Pinterest focusing on gen Z users. 0:23:55.080 --> 0:23:55.280 Right. 0:23:55.520 --> 0:23:58.520 My question to start what is the relationship in the 0:23:58.560 --> 0:24:02.000 activity between the shopping and the gen Z uses. 0:24:03.440 --> 0:24:05.960 Yeah, so you know we're finding our best product market 0:24:05.960 --> 0:24:08.560 fit in years. We've hit an all time high with 0:24:08.680 --> 0:24:11.399 users more than half a billion users and as you noted, 0:24:12.160 --> 0:24:14.680 gen Z is our largest demographic. It's now more than 0:24:14.720 --> 0:24:17.320 forty percent of our platform, and it's our fastest growing 0:24:17.359 --> 0:24:21.080 demographic as well. And at the core that growth with 0:24:21.359 --> 0:24:25.240 gen Z has been the rising actionability in the platform. 0:24:25.760 --> 0:24:28.360 Pinterest is where gen Z goes to shop, and as 0:24:28.359 --> 0:24:30.760 we've made Pinterest more actionable, so the people who can 0:24:30.800 --> 0:24:33.160 get to more of the things they're finding on Pinterest. 0:24:33.560 --> 0:24:36.520 We're seeing that work really well for users, where we've 0:24:36.560 --> 0:24:39.600 accelerated user growth for seven straight quarters now. But it's 0:24:39.640 --> 0:24:43.439 also cutting through for advertisers, where as you noted revenue 0:24:43.440 --> 0:24:47.159 grow twenty three percent this quarter, nearly doubling our revenue 0:24:47.160 --> 0:24:49.760 growth rate from last quarter. And so we're really seeing 0:24:49.800 --> 0:24:52.680 this be quite synergistic between users finding the things that 0:24:52.760 --> 0:24:55.159 they love on Pinterest and then advertisers finding this is 0:24:55.200 --> 0:24:57.399 a great place for them to meet users that are 0:24:57.480 --> 0:24:59.000 in market looking to shop and buy. 0:24:59.280 --> 0:25:01.680 And that's just some of the synergies that you've managed 0:25:01.720 --> 0:25:04.000 to bring to bear with Amazon, with Google, with. 0:25:04.000 --> 0:25:05.160 Those ad partnerships. 0:25:05.160 --> 0:25:08.560 Bill, how much of that advertising optic is thanks to 0:25:08.600 --> 0:25:09.600 these third parties. 0:25:10.640 --> 0:25:13.480 Well, you know, on the shop ability front, you know, 0:25:13.840 --> 0:25:16.400 historically Pintress has solved digital window shopping. It was hard 0:25:16.400 --> 0:25:18.040 to get to the things that you found on Pinterest. 0:25:18.640 --> 0:25:22.160 We have opened the stores, and in doing that, we're 0:25:22.200 --> 0:25:25.880 seeing that retailers broadly are finding great performance on Pinterest. 0:25:25.960 --> 0:25:28.720 At the core of our revenue acceleration has been our 0:25:28.760 --> 0:25:34.280 strength in low funnel actionability users that are clicking and buying. 0:25:34.440 --> 0:25:36.440 We more than double the number of clicks we sent 0:25:36.480 --> 0:25:39.000 to advertisers in Q four, and we did it again 0:25:39.119 --> 0:25:42.000 in Q one. That is broad based, but we are 0:25:42.040 --> 0:25:46.359 seeing our best strength with the largest, most sophisticated retailers 0:25:46.359 --> 0:25:47.320 that provide really. 0:25:47.200 --> 0:25:48.480 Great buying experiences. 0:25:48.760 --> 0:25:51.240 We're quite pleased with that, and we also see that 0:25:51.280 --> 0:25:53.560 the third party demand that we've brought onto the platform 0:25:53.880 --> 0:25:56.120 is doing exactly what it was intended to do, which 0:25:56.160 --> 0:26:00.440 is rounding out gaps in our auction and bringing more great, shoppable, 0:26:00.480 --> 0:26:04.080 biable content onto Pinterest so that when users find what 0:26:04.119 --> 0:26:06.159 they're looking for on Pinterest, they can easily click and 0:26:06.200 --> 0:26:06.440 buy it. 0:26:08.440 --> 0:26:11.200 This was a milestone quarter in the sense that global 0:26:11.200 --> 0:26:15.040 monthly uses past half a billion for the first time. 0:26:15.760 --> 0:26:18.359 You've put a lot of emphasis on gen z So 0:26:18.480 --> 0:26:21.320 look forward, what is the arc of user growth and 0:26:21.320 --> 0:26:25.000 what drives it, what brings in you users to your platform? 0:26:25.040 --> 0:26:27.879 Bill Yeah, so you know, as I mentioned, this is 0:26:27.920 --> 0:26:31.800 our seventh consecutive core of accelerating user growth. We've accelerated 0:26:31.880 --> 0:26:36.120 in every geography and with every generation that we track. 0:26:36.200 --> 0:26:38.760 Gen zs are fastest growing in our largest but you 0:26:38.800 --> 0:26:41.760 have millennials right behind that. So our improvement in the 0:26:41.760 --> 0:26:44.280 product has been broad based, and it is that actionability 0:26:44.320 --> 0:26:46.040 at the core. But I would say we are just 0:26:46.080 --> 0:26:49.160 getting going with that. We see much more building momentum 0:26:49.200 --> 0:26:52.720 in that as we look forward, and it's both the 0:26:52.800 --> 0:26:55.520 actionability as well as the positivity that. 0:26:55.480 --> 0:26:56.199 We're bringing into it. 0:26:56.280 --> 0:27:01.080 We've made tremendous strides with AI, and AI is bringing 0:27:01.119 --> 0:27:03.920 more relevant recommendations for users so they can take action 0:27:04.040 --> 0:27:06.240 on more of what they find. But it's also the 0:27:06.280 --> 0:27:09.960 case that we're tuning AI for positivity. We're tuning it 0:27:10.040 --> 0:27:13.159 to help users feel better not just in finding what 0:27:13.200 --> 0:27:15.320 they're looking to shop and buy, but in making sure 0:27:15.359 --> 0:27:18.159 that we're bringing inspirational content to them. So we've done 0:27:18.320 --> 0:27:22.320 things like inclusive AI, where we have skin tone filters 0:27:22.320 --> 0:27:26.080 so people can filter for things that will reflect them 0:27:26.160 --> 0:27:29.639 and including diversity by default in our feeds. We introduce 0:27:29.720 --> 0:27:32.919 body type AI where people can select body types so 0:27:32.960 --> 0:27:36.880 that they can find more things that fit well for them, 0:27:37.240 --> 0:27:38.879 and so we want to make it so that every 0:27:38.960 --> 0:27:42.439 person on Pinterest can see themselves on Pinterest. And so 0:27:42.920 --> 0:27:45.640 that's really leading to great strides. 0:27:45.119 --> 0:27:46.000 In both the. 0:27:48.000 --> 0:27:52.600 Relevance, the representation, and just people feeling positive when they 0:27:52.600 --> 0:27:53.560 spend time on Pinterest. 0:27:54.440 --> 0:27:57.719 So last night on the Amazon Media called, Brian Osowski 0:27:57.840 --> 0:28:01.040 was asked about Tmu and she in the context of 0:28:01.080 --> 0:28:04.439 competition with you guys at pinterest a little bit different, 0:28:04.840 --> 0:28:08.920 would you talk about Timu and Shean as potential partners? 0:28:08.960 --> 0:28:13.520 Are you seeing any uplift from Chinese advertisers? 0:28:13.240 --> 0:28:17.160 So apac cross border has been a contributor to our growth, 0:28:17.160 --> 0:28:20.440 but it's a nice contributor. You know, it's not overwhelming, 0:28:20.600 --> 0:28:23.679 but it's a nice contributor. But as I mentioned before, 0:28:23.680 --> 0:28:26.960 our strength and retail has been broad based. Retailers of 0:28:27.000 --> 0:28:31.000 all sizes are finding strength on Pinterest, and it's because 0:28:31.040 --> 0:28:33.720 they're seeing that doubling of clicks that we sent to 0:28:33.720 --> 0:28:35.680 advertisers a year on year in Q four and again 0:28:35.720 --> 0:28:39.080 in Q one. And it's also because they're able to 0:28:39.120 --> 0:28:42.520 meet hard to find shoppers like gen Z on Pinterest, 0:28:42.880 --> 0:28:45.360 and they're meeting those shoppers in a really unique moment 0:28:45.440 --> 0:28:48.400 because users come to Pinterest when they have clear intent. 0:28:48.480 --> 0:28:50.000 More than half the users on the platform, we're here 0:28:50.000 --> 0:28:53.120 to shop, but they haven't yet decided what to buy, 0:28:53.400 --> 0:28:56.080 so they're not necessarily searching for a specific brand or 0:28:56.120 --> 0:28:58.760 a specific item where maybe the decisions already made. They're 0:28:58.800 --> 0:29:01.680 coming here with much more general thoughts like cool outfits 0:29:01.680 --> 0:29:04.760 for spring, what to wear to Coachella, and those are 0:29:04.880 --> 0:29:09.080 great moments for advertisers to meet users because the user 0:29:09.120 --> 0:29:12.000 has clear intent but hasn't decided yet what to buy. 0:29:12.160 --> 0:29:14.960 And again we're seeing that broad based across retailers. China 0:29:14.960 --> 0:29:17.960 cross border is a contributor, but it's broad based strength 0:29:17.960 --> 0:29:19.080 for retailers. 0:29:18.760 --> 0:29:21.080 Focusing a little bit more on China for a moment, Bill, 0:29:21.320 --> 0:29:23.720 I mean, this is a unique time in social media 0:29:23.720 --> 0:29:25.520 more broadly, because it looks as though one of a 0:29:25.760 --> 0:29:28.280 key social media player might be falling away. 0:29:29.040 --> 0:29:30.720 Do you think more gen Z will come to. 0:29:30.720 --> 0:29:34.160 You because of TikTok potentially being banned completely no longer 0:29:34.200 --> 0:29:35.160 existing in the US. 0:29:36.400 --> 0:29:38.840 Well, when you look at why we are doing so 0:29:39.000 --> 0:29:42.240 well with gen Z, it is because we are doing 0:29:42.240 --> 0:29:44.160 something very different than the rest of social media. For 0:29:44.200 --> 0:29:46.920 gen Z, most of social media has the user in 0:29:46.960 --> 0:29:49.800 a lean back entertainment mode. We have the user in 0:29:49.840 --> 0:29:54.000 a lean forward mode with intent and purpose. And I 0:29:54.120 --> 0:29:57.600 mentioned tuning for positivity. You know, gen Z sees Pinterest 0:29:57.680 --> 0:30:00.680 as an oasis away from the toxicity they experience on 0:30:00.800 --> 0:30:03.240 much of the rest of social media. They know that 0:30:03.280 --> 0:30:07.200 social media has largely become comparative and performative. And if 0:30:07.240 --> 0:30:08.840 you go talk to gen Z about why they spend 0:30:08.840 --> 0:30:11.600 time on Pinterest, they'll say they go to other places 0:30:11.600 --> 0:30:14.560 on social media and see what others want them to be, 0:30:14.640 --> 0:30:16.440 what others expect them to be, and then go to 0:30:16.480 --> 0:30:19.560 Pinterest to discover what they want to be and invest 0:30:19.600 --> 0:30:22.120 in themselves with a small circle of friends. So that's 0:30:22.160 --> 0:30:25.320 already winning with gen Z. And we're not sitting around 0:30:25.320 --> 0:30:28.480 hoping for the demise of other platforms. We're just busy 0:30:28.520 --> 0:30:31.600 building something that makes people feel more positive, is going 0:30:31.600 --> 0:30:34.320 to give them a great experience, and that's winning, particularly 0:30:34.320 --> 0:30:34.760 of gen Z. 0:30:35.720 --> 0:30:39.440 Okay, so no clear ambition to capitalize in the uncertainty, 0:30:39.520 --> 0:30:42.640 but clearly seeing the flow of gen Z. What really 0:30:42.680 --> 0:30:45.520 always interests me, Bill is when you break down your 0:30:45.600 --> 0:30:48.120 numbers in terms of average users and where they are 0:30:48.400 --> 0:30:50.719 you're so dominant in the rest of the world, do 0:30:50.760 --> 0:30:52.720 you see US as the area of growth do you 0:30:52.720 --> 0:30:54.720 see internationally more the area of growth. 0:30:54.920 --> 0:30:56.360 Where do you see the expansion? 0:30:57.560 --> 0:31:00.600 So that's a great question. As you noted, we have 0:31:00.640 --> 0:31:02.760 approximately eighty percent of our eighty percent or more of 0:31:02.800 --> 0:31:05.920 our use outside the US, but only approximately twenty percent 0:31:05.920 --> 0:31:09.880 of our revenue outside the US. So the improvements we've 0:31:09.920 --> 0:31:13.120 made from the user perspective have been broad based. As 0:31:13.120 --> 0:31:16.920 I mentioned, we've accelerated users across every geography. On the 0:31:16.920 --> 0:31:20.160 modernization side, we are much further along in the US, 0:31:20.200 --> 0:31:22.600 and we are now starting to deploy those things internationally, 0:31:22.640 --> 0:31:25.080 and so we see international as a huge growth vector 0:31:25.760 --> 0:31:27.760 for us, both in terms of what we will bring 0:31:27.800 --> 0:31:31.440 to advertisers directly where we do first party selling, as 0:31:31.440 --> 0:31:33.440 well as where we're bringing in new sources of demand, 0:31:33.560 --> 0:31:37.320 either through third party demand like what we're doing with 0:31:37.320 --> 0:31:40.760 our Google partnership in international markets or what we're now 0:31:40.800 --> 0:31:43.320 doing with resellers in international markets where they can bring 0:31:43.360 --> 0:31:45.600 more local demand, which is going to be great for 0:31:45.640 --> 0:31:48.400 those advertisers, but also great for users that will find 0:31:48.440 --> 0:31:51.440 more shoppable content as more of those advertisers those international 0:31:51.480 --> 0:31:53.760 markets come onto our platform. 0:31:54.040 --> 0:31:56.560 Bill, great to catch up with you thanks to spending 0:31:56.560 --> 0:31:59.840 some time with USKS. Very money Pindras CEO Bill ready there. 0:32:00.640 --> 0:32:02.520 Meanwhile coming up that we're going to be joined by 0:32:02.600 --> 0:32:05.800 Renegade Partners co founder Rosanne Winsec about the. 0:32:05.760 --> 0:32:09.080 Firm's new fun They raise a lot where they're spending it. 0:32:09.160 --> 0:32:29.520 There's a rumot technology, so Pallenteer CEO Alex cart Sequoia's 0:32:29.560 --> 0:32:33.400 leader that of Boda venture capitalist Vinod Kozla, that among 0:32:33.520 --> 0:32:36.880 the Silicon Valley heavyweights, you're traveling to Washington this week 0:32:37.240 --> 0:32:39.600 for a summit on the role of AI and escalating 0:32:39.600 --> 0:32:40.520 competition between. 0:32:40.280 --> 0:32:41.040 The US and China. 0:32:41.120 --> 0:32:43.120 Now the Hill and the Valley Forum, as it's called, 0:32:43.560 --> 0:32:46.320 is sponsored by a group of vcs including Peter tielback 0:32:46.360 --> 0:32:48.320 to Founders Fund that seems to be the second iteration 0:32:48.400 --> 0:32:49.840 head and still gets. 0:32:50.560 --> 0:32:53.000 I've got some deja vu. I'm pretty sure we've done 0:32:53.000 --> 0:32:55.320 that one before. Let's stick in the world of private 0:32:55.360 --> 0:32:59.440 markets and vents capital. Renegade Partners, an early stage venture firm, 0:32:59.520 --> 0:33:01.719 just announced the close of it's fun Too with one 0:33:01.800 --> 0:33:04.680 hundred and twenty eight million dollars, bringing the total assets 0:33:04.760 --> 0:33:07.240 under management to two hundred and twenty eight million dollars. 0:33:07.320 --> 0:33:09.400 It's like to say, we're joined by Renegade Partners co 0:33:09.480 --> 0:33:11.960 founder and managing director Razan win Sec. 0:33:12.360 --> 0:33:14.400 Welcome. You are going to. 0:33:14.360 --> 0:33:18.080 Invest in what you're calling durable technology companies. What is 0:33:18.080 --> 0:33:19.640 a durable technology company? 0:33:20.120 --> 0:33:20.440 Hied? 0:33:20.520 --> 0:33:22.440 Thank you so much for having me. So when we 0:33:22.480 --> 0:33:25.400 think about what is a durable company, we're actually looking at, 0:33:25.560 --> 0:33:27.520 you know, what are markets that actually really matter here? 0:33:28.160 --> 0:33:31.840 What are markets that are large and still relatively untouched 0:33:31.840 --> 0:33:35.080 by technology that can support really large outcomes? You know, 0:33:35.200 --> 0:33:37.680 I think over the past few years, we've seen a 0:33:37.720 --> 0:33:40.400 lot of you know, software selling to software software selling 0:33:40.400 --> 0:33:43.320 to startups, and those companies have frankly like evaporated in 0:33:43.360 --> 0:33:45.360 this market turn And so one thing that we thought 0:33:45.400 --> 0:33:47.360 about a lot in our fund one, and we're thinking 0:33:47.360 --> 0:33:48.920 even more about in Fund two. Or what are those 0:33:48.960 --> 0:33:52.360 markets that actually really drive like meaningful parts of GDP 0:33:52.920 --> 0:33:56.000 and can actually move beyond you know, trends in venture 0:33:56.040 --> 0:33:57.640 capital and become lasting companies. 0:33:57.920 --> 0:33:59.520 So what is the secret source? 0:33:59.720 --> 0:34:01.960 So speak like, how is it that your position to 0:34:02.040 --> 0:34:04.959 identify a company that fits that profile? And you can 0:34:05.000 --> 0:34:07.360 go to your LPs and say, we're pretty confident that 0:34:07.640 --> 0:34:08.800 this fits the thesis. 0:34:09.160 --> 0:34:12.080 Yeah, you know, so we're generalists. We're very like sector agnostic, 0:34:12.120 --> 0:34:14.319 stage specific, but we like to kind of look at 0:34:14.320 --> 0:34:17.040 the market very broadly. So for instance, in our find one, 0:34:17.080 --> 0:34:22.160 we have companies like Aerospace Intelligence that sells into aerospace 0:34:22.200 --> 0:34:26.520 and defense, COPA Automation selling into PLC right into factories. 0:34:26.560 --> 0:34:30.520 So thinking about you know, on shoring and digital transformation. 0:34:30.600 --> 0:34:34.240 There companies like Auxiliar selling into biotech FP and A 0:34:34.160 --> 0:34:36.960 a great way to get beta access to the beta 0:34:37.000 --> 0:34:40.239 of that market without actually investing in a molecular a therapeutic. 0:34:41.200 --> 0:34:42.279 So we really try to. 0:34:42.200 --> 0:34:45.279 Think kind of big tops down and look for great 0:34:45.280 --> 0:34:47.640 companies that are going after big problems in those faces. 0:34:48.560 --> 0:34:53.319 Relatively competitive still in the earliest stages of VC. What 0:34:53.440 --> 0:34:55.799 do you do that makes you stand out? Rozan, how 0:34:55.840 --> 0:34:58.680 do you manage to be supporting some of these founders 0:34:58.680 --> 0:35:02.200 which increasingly to to us about bun out about worries 0:35:02.280 --> 0:35:03.560 about mental health issues. 0:35:04.960 --> 0:35:07.560 I know it is, Caroline, You're completely right, Like it 0:35:07.640 --> 0:35:10.279 is still very competitive there, even though the market feels 0:35:10.320 --> 0:35:12.560 softer than it did a couple of years ago. I mean, 0:35:12.640 --> 0:35:14.880 as we think about Renegade and like what we can offer, 0:35:15.400 --> 0:35:17.279 I always think about like, you know, you can't beat 0:35:17.280 --> 0:35:18.600 somebody else at their own games, So how do you 0:35:18.600 --> 0:35:20.759 play a game that they can't play? Right Like, we 0:35:20.840 --> 0:35:23.040 like to focus ourselves on being like a very bespoke 0:35:23.080 --> 0:35:25.319 boutique firm where founders get to work directly with the 0:35:25.320 --> 0:35:28.399 founders themselves. Right Like, if you are a founder led 0:35:28.440 --> 0:35:30.040 business and you're sitting on your board, you don't want 0:35:30.040 --> 0:35:32.240 an employee sitting next to you, you want another founder sitting 0:35:32.239 --> 0:35:32.719 next to you. 0:35:33.120 --> 0:35:33.239 Uh. 0:35:33.280 --> 0:35:35.440 We have really great alignment that way, right Like, we 0:35:35.440 --> 0:35:37.840 don't have a story about job security or you know 0:35:37.960 --> 0:35:41.520 around partnership dynamics because we all in the firm as well. 0:35:42.080 --> 0:35:44.600 We only make twenty investments per fund. That means, you know, 0:35:44.680 --> 0:35:47.160 only six or seven deals per year, and so we're 0:35:47.160 --> 0:35:48.919 really spending a lot of time with each and every 0:35:48.960 --> 0:35:51.080 company and you know, helping them where they need help 0:35:51.120 --> 0:35:52.759 and getting out of the way where they don't. We 0:35:52.800 --> 0:35:55.040 also have a great operating practice where we focus on 0:35:55.360 --> 0:35:57.480 you know, people and team. It's led by our incredible 0:35:57.520 --> 0:36:00.640 operating partner, a woman named Susan Albyn and and she 0:36:00.680 --> 0:36:05.919 really helps our companies think about team organs, team organ design, structure, compensation, 0:36:06.280 --> 0:36:08.719 building the hiring and firing machine. And often those are 0:36:08.760 --> 0:36:10.839 the things that are keeping early stage CEOs up at 0:36:10.920 --> 0:36:13.400 night because we kind of assume that they know how 0:36:13.440 --> 0:36:15.800 to build and run a team when often this is 0:36:15.840 --> 0:36:16.439 their first time. 0:36:16.560 --> 0:36:18.279 Yeah, we assume that they can be leaders and they 0:36:18.280 --> 0:36:18.600 get go. 0:36:19.040 --> 0:36:22.560 I'm interested those as to how you're helping those leaders 0:36:22.560 --> 0:36:25.280 and others within those startups to be able to pivot 0:36:25.360 --> 0:36:28.080 if they on an AI first business right now? 0:36:28.960 --> 0:36:31.680 Yeah, I mean I think, you know, I think there's 0:36:31.680 --> 0:36:33.440 a blessing and a curse today today you're being an 0:36:33.440 --> 0:36:35.400 AI first business. We've seen a lot of companies that 0:36:35.440 --> 0:36:37.680 are just frankly a thin wrapper on type of open 0:36:37.680 --> 0:36:40.719 AI and those businesses are not defensible, you know, I 0:36:40.760 --> 0:36:43.440 think really first and foremost, like you have to be 0:36:43.440 --> 0:36:46.080 thinking about what is actually driving value for your customer, 0:36:46.120 --> 0:36:48.040 what's actually driving OURI, what they're actually going to pay 0:36:48.040 --> 0:36:52.399 for after like you know, the AI innovation budgets dry up, 0:36:52.719 --> 0:36:55.600 and so frankly, you know, every company is going to 0:36:55.600 --> 0:36:57.439 be an AI company. It's just like every company today 0:36:57.480 --> 0:36:59.480 is a cloud company. We don't invest in companies because 0:36:59.480 --> 0:37:01.960 theyre cloud companies. Every company is a cloud company. AI 0:37:02.080 --> 0:37:03.920 is going to be the same way, right, So what 0:37:04.080 --> 0:37:06.799 are those products and services that AI can actually supercharge, 0:37:06.800 --> 0:37:08.960 that can do you know, different things than just a 0:37:09.040 --> 0:37:10.600 great SaaS business that's putting. 0:37:10.320 --> 0:37:11.360 AI into their product. 0:37:11.680 --> 0:37:14.319 You heard the story reported at the top of the segment. Yeah, 0:37:14.400 --> 0:37:16.800 some of your industry colleagues Pizza Teel then d Coosa 0:37:16.920 --> 0:37:18.920 going to d C. Do you think it's the job 0:37:18.960 --> 0:37:20.360 of vcs to do that? 0:37:20.760 --> 0:37:23.279 You know, I think it's important that are like the 0:37:23.520 --> 0:37:26.920 Silicon Valley is well represented on the Hill because frankly, 0:37:27.000 --> 0:37:30.080 what happens here has a massive impact in the US 0:37:30.360 --> 0:37:32.719 and in the world, you know, the world in total, 0:37:32.800 --> 0:37:34.879 and you know, I do think there is a role 0:37:34.960 --> 0:37:38.000 for it. You know, we have to remember like incentives 0:37:38.080 --> 0:37:40.000 drive behavior, so you have to think about what is 0:37:40.040 --> 0:37:42.759 everyone's incentive as you know, regardless of what they're doing. 0:37:43.120 --> 0:37:45.719 But I think it's important that we're thinking about AI, 0:37:46.800 --> 0:37:49.239 you know, at the cutting edge at the federal level. 0:37:49.880 --> 0:37:52.920 Renegay Partners co founder managing director as Sam Winset. 0:37:52.960 --> 0:37:54.320 Great to have you on the program. Thank you. 0:38:01.880 --> 0:38:04.880 It's the latest episode of The Circuit and Bloomberg Originals 0:38:04.960 --> 0:38:07.560 hosts and executive producer em Andy Chang. She sat down 0:38:07.600 --> 0:38:10.480 with the GM CEO Mary Burrow to discuss well why 0:38:10.520 --> 0:38:12.040 she's continuing to bet. 0:38:11.920 --> 0:38:14.600 Big on electric vehicles and autonomous driving particulous. 0:38:17.120 --> 0:38:19.680 We're still as an industry, we're in the early days. 0:38:19.800 --> 0:38:22.920 I think what we're still seeing is battery, battery chemistry, 0:38:22.960 --> 0:38:27.120 battery technology is still expensive, and because the vehicle's already 0:38:27.560 --> 0:38:30.760 a very expensive purchase for consumers, you know, it's getting 0:38:31.000 --> 0:38:34.760 continuing to get costs down while we continue to improve 0:38:34.800 --> 0:38:38.439 the technology. It almost feels like hype is slowing down. 0:38:38.640 --> 0:38:40.760 Do you feel like you're battling that like a sentiment? 0:38:41.200 --> 0:38:43.719 You know shift as well. I think it was overhyped 0:38:44.120 --> 0:38:47.279 and now it's probably under hyped and the truth is 0:38:47.360 --> 0:38:50.239 somewhere in the middle. But you know, again, yes growth 0:38:50.280 --> 0:38:54.279 has slowed, but it's still growing. You scaled back some 0:38:54.360 --> 0:38:58.360 other EV targets, mainly because of the battery manufacturing issues, 0:38:58.400 --> 0:39:01.000 Like why is that still such a challenge. We were 0:39:01.040 --> 0:39:04.160 making something new and I grew up in manufacturing, so 0:39:04.280 --> 0:39:07.080 I feel like we do have a lot of manufacturing expertise, 0:39:07.520 --> 0:39:09.480 but I think we took for granted some of the 0:39:09.560 --> 0:39:11.719 newer processes and we will not do that again. 0:39:11.800 --> 0:39:12.000 Yeah. 0:39:12.440 --> 0:39:15.400 Elon Musk has mocked traditional automakers for how long it 0:39:15.440 --> 0:39:18.080 took come to get into Eb's Was he right about that? 0:39:18.880 --> 0:39:20.399 You know, if I had a do over, I would 0:39:20.400 --> 0:39:23.040 have even though we were moving, I would have accelerated 0:39:23.080 --> 0:39:26.239 the pace. You know, Hindsight's twenty twenty Tesla stock is 0:39:26.320 --> 0:39:29.680 up more than thirteen hundred percent in the last ten years. 0:39:29.920 --> 0:39:33.799 GM is up like twelve thirteen percent. You have met 0:39:33.920 --> 0:39:36.960 or beat expectations thirty five out of last thirty six quarters. 0:39:37.800 --> 0:39:40.040 So when you look at the stock, does it ever 0:39:40.120 --> 0:39:40.799 piss you off? 0:39:41.920 --> 0:39:42.120 Yeah? 0:39:42.600 --> 0:39:45.560 It does, I mean because I but but again, I 0:39:45.640 --> 0:39:47.560 can get mad about it, and I can be upset 0:39:47.640 --> 0:39:50.040 and up frustrated, and believe me, I have those moments. 0:39:50.080 --> 0:39:52.239 You know, at the end, it's our responsibility. You can't 0:39:52.239 --> 0:39:53.359 go home and have a pity party. 0:39:53.760 --> 0:39:56.319 Watch The Circuit with Emily Chang tonight at six pm 0:39:56.360 --> 0:39:59.400 easton in New York on Bloomberg Television, or stream at 0:39:59.400 --> 0:39:59.880 eight pm E. 0:40:00.480 --> 0:40:02.840 On Bloomberg Originals. Let's stick with. 0:40:02.920 --> 0:40:06.759 GM, The company's eyeing billions in digital revenues with an 0:40:06.760 --> 0:40:10.400 alternative to Apple's car Play, which has become the default 0:40:10.440 --> 0:40:13.359 home screen of the center console and vehicles ranging from 0:40:13.400 --> 0:40:17.520 Ford's to Ferrari's GM's platform called Altifi was rolled out, 0:40:18.080 --> 0:40:20.320 but not without a few hiccups. Joining us now is 0:40:20.400 --> 0:40:23.279 the author of that terrific deep dive Bloomberg's Dave as well, 0:40:23.280 --> 0:40:25.480 which out of Detroit. You paint the picture of Michael 0:40:25.520 --> 0:40:29.240 Wardrum who's picked up this beautiful sixty two thousand dollars 0:40:30.040 --> 0:40:32.360 Chevy Blazer EV. He's so proud of it, and he 0:40:32.440 --> 0:40:36.280 sits in the cockpit, in the driver's seat, no Apple 0:40:36.360 --> 0:40:39.279 car play, And therein lies the strategy from GM. 0:40:41.200 --> 0:40:44.520 That's right. They want to pull people into their cars. 0:40:44.680 --> 0:40:47.480 And actually, I've driven the Blazer Rev. It is quite 0:40:47.480 --> 0:40:50.919 a good vehicle. Waldron's assessment is right. But they're making 0:40:51.000 --> 0:40:53.200 this gamble that people will like the cars get in, 0:40:53.840 --> 0:40:57.160 and that they can overcome this consumer inertia and just 0:40:57.239 --> 0:41:00.480 pull people away from CarPlay, and they're better Bely, this 0:41:00.719 --> 0:41:04.960 CarPlay will project what your phone does, which is music, messaging, podcasts, 0:41:05.000 --> 0:41:06.759 that sort of thing. But they can do so much 0:41:06.800 --> 0:41:10.080 more with their own internal system. I like how the 0:41:10.160 --> 0:41:12.560 head software guy in an interview with me put it 0:41:12.960 --> 0:41:16.640 from Rivian said, we don't want our infotainment system in 0:41:16.719 --> 0:41:18.480 a arriva and to be the same thing that's in 0:41:18.560 --> 0:41:21.600 every rental car, and GM is taking the same approach 0:41:21.680 --> 0:41:23.840 with this, but that still means you have to execute 0:41:23.840 --> 0:41:26.960 a better system than Apple has, and so far GM's 0:41:27.000 --> 0:41:28.879 had a tough time with that. The new system since 0:41:28.920 --> 0:41:32.000 they brought it back, has had no issues since they 0:41:32.040 --> 0:41:33.719 started selling it again in March, but it was a 0:41:33.800 --> 0:41:36.640 very rough start for them. And even after that, if 0:41:36.640 --> 0:41:39.719 they can build it well, if they can keep the 0:41:39.800 --> 0:41:42.040 software from being buggy, they're still going to have to 0:41:42.200 --> 0:41:45.360 get consumers to decide that they don't need CarPlay, and 0:41:45.440 --> 0:41:47.000 that can be a tough marketing challenge. 0:41:47.680 --> 0:41:50.920 Tough marketing challenge, but a lot to be rewarded for 0:41:51.080 --> 0:41:54.320 when it comes to digital revenue in the future. We 0:41:54.360 --> 0:41:56.280 can see why they're trying to tussele it out with Apple. 0:41:56.480 --> 0:41:58.920 David Welch, it's a great deep dive. Please go read it. 0:41:59.520 --> 0:42:02.960 GMI billions in digital revenue with CarPlay alternative. 0:42:03.040 --> 0:42:06.160 Meanwhile, look, that does it for this edition of Bloomberg Technology. 0:42:06.280 --> 0:42:09.200 We've had CEO conversations, we've deep dived into the earnings, 0:42:09.200 --> 0:42:09.600 and there's. 0:42:09.480 --> 0:42:12.360 More to come in Yeah, and you forget that we 0:42:12.480 --> 0:42:14.840 have more CEOs coming up twenty four hours time in 0:42:14.920 --> 0:42:18.680 the show cloudcom reports tonight, then you've got Apple Thursday. 0:42:19.239 --> 0:42:21.320 There is so much more still to come recap. 0:42:21.120 --> 0:42:22.040 This show, though, is a good one. 0:42:22.280 --> 0:42:24.919 On the podcast, Apple, Spotify, and iHeart and of course 0:42:25.239 --> 0:42:27.719 the pod goes onto all the Bloomberg platforms as well. 0:42:27.800 --> 0:42:30.279 Thanks everyone for tuning in from San Francisco and New 0:42:30.360 --> 0:42:30.839 York City. 0:42:31.160 --> 0:42:32.600 This is Bloomberg Technology.