Speaker 1: From the heart where Innovations, money and power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroline Heinder Bloomberg's weltead quarters.
Speaker 4: In New York, and I met Ludlow in San Francisco.
Speaker 4: This is Bloomberg Technology.
Speaker 3: Coming up Amazon.
Speaker 5: It posts a biggest cloud sales growth in a year.
Speaker 3: That's all on AI demand details.
Speaker 6: The't com plus full.
Speaker 4: Chip coverage ahead is AMD falls after its AI chip
Speaker 4: forecast disappoints.
Speaker 5: And we sit down with the CEO of Pinterest for
Speaker 5: an exclusive interview as that revenue surge is the first
Speaker 5: let's check in on the rest of these markets and
Speaker 5: actually a little bit of nervousness, shall we say, ahead
Speaker 5: of the FAED all important two PM two thirty is when,
Speaker 5: of course j Powell comes forward with his press conference.
Speaker 5: So we're down about a ten percent, but bouncing off
Speaker 5: of our lows. But of course, more broadly, the technology
Speaker 5: drag lower by some of those earnings in the chip
Speaker 5: names and the read across we're down by two point
Speaker 5: five percent.
Speaker 3: Let's call it on the socks.
Speaker 5: I know edge you'll be digging into really what are
Speaker 5: the ultimate names that are pulling down the key chip index.
Speaker 3: But I also look at ten year yields actually catching
Speaker 3: a bid now. Earlier we saw bond sell off.
Speaker 5: Now they're catching a bid because we see the US
Speaker 5: Treasury actually isn't going to be upping its supply in
Speaker 5: the coming quarter in terms of bond auctions. That notably,
Speaker 5: we have seen some worrying signs when it comes to
Speaker 5: economic data today, Manufacturing in particular seeing a slowdown, but
Speaker 5: the price is paid still.
Speaker 3: On the upside. So we've got that issue of inflation.
Speaker 5: How much we are actually seeing a cooling or a
Speaker 5: steadying of the US economy. Remember we actually saw some
Speaker 5: weaker jobs data today as well. Moving on, have a
Speaker 5: look at what's happening in terms of you got individual
Speaker 5: movers and from a crypto perspective, and I'm looking at
Speaker 5: what's happening on the bitcoin down four point three percent
Speaker 5: on the day, We're now sub sixt fifty seven thousand
Speaker 5: dollars is where we currently trade. Maybe that's a macro picture,
Speaker 5: Maybe that's a risk off feel.
Speaker 3: What are you seeing on the.
Speaker 4: Micro Let's start with AMD. Actually, this is a big
Speaker 4: move lower in AMD despite actually upgrading their forecast for
Speaker 4: sales of AI accelerators from three point five billion to
Speaker 4: four billion. The problem was high hope, some in the
Speaker 4: street seeing or hoping for guides of eight billion dollars.
Speaker 4: We're talking about them three hundred x, which AMD is
Speaker 4: going to put out into the market to compete against
Speaker 4: Nvidia principally h two hundred. But they also sing a
Speaker 4: slowdown in gaming. Old is new, right, AMD's the name
Speaker 4: we used to talk about because you built your custom
Speaker 4: rig with AMD GPU if you want to play high
Speaker 4: performance games. We'll come back to that in just a
Speaker 4: moment with our analyst, con Jensabani, and then Amazon Amazon.
Speaker 6: Actually it's a kind of muted response.
Speaker 4: We're up two point three percent strong first quarter, tep
Speaker 4: it outlook for sales in the second quarter. But the
Speaker 4: story is AWS annual revenue run rate of one hundred
Speaker 4: billion dollars.
Speaker 6: But the devil's in the detail.
Speaker 4: And it was just one sentence from Brian Zawski, the CFO,
Speaker 4: that generative AI revenue run rate in the multiple billions
Speaker 4: of dollars, and that seems to be enough to show
Speaker 4: that AI is actually starting to show up in the financials.
Speaker 6: Let's dig into Amazon's results.
Speaker 4: After the company's cloudion, it posted it's strongest sales growth
Speaker 4: in the year.
Speaker 6: We're bloomed by Spencer Sopa.
Speaker 4: Spencer, you were on that media call with Brian Ozowski,
Speaker 4: and I think that's the focus.
Speaker 6: Here, isn't it.
Speaker 4: It's the AI is a real thing that makes real
Speaker 4: money sort of.
Speaker 7: Yeah, the profitability for AWS and the quarter was huge.
Speaker 7: You know, it accounts for less than twenty percent of
Speaker 7: all Amazon revenue, but it's like two thirds of its profit.
Speaker 1: So that was big.
Speaker 7: And then the question for the investors is, you know,
Speaker 7: what's the pace of investment going to look like and
Speaker 7: how are these margins going to look as Amazon continues
Speaker 7: to invest in new data centers to fuel this boom,
Speaker 7: and there is a little bit of just some breadcrumbs dropped.
Speaker 7: Amazon said it dropped about fourteen billion in the first
Speaker 7: quarter on data centers, and it said that'll be the
Speaker 7: low point for the rest of the year, so they're
Speaker 7: probably looking at about, you know, north of fifty billion
Speaker 7: in data center investment at least this year.
Speaker 5: Nenevertheless, managed to support that operating margin what was it,
Speaker 5: thirty seven point six percent whyer since they started disclosing
Speaker 5: what it was and breaking out AWS. But the bread
Speaker 5: and buffer that we all know Amazon for in many
Speaker 5: ways is the e commerce play.
Speaker 3: And how's the consumer looking for them right now?
Speaker 6: Yeah, that's where things were a little soft.
Speaker 7: The overall revenue guidance was a little light for the
Speaker 7: current quarter, and they said that consumers are definitely pinching
Speaker 7: their pennies there. The average order size is smaller, and
Speaker 7: so that hurts the margins of the e commerce business
Speaker 7: because if you're shipping less expensive things, it still costs
Speaker 7: the same amount to process and ship those items. So
Speaker 7: the e commerce outlook is good, just not nearly as
Speaker 7: good as AWS was, and they're definitely seeing some signs
Speaker 7: of consumer strength.
Speaker 3: We've got the Pinterest CEO coming on a little bit later.
Speaker 5: We're being asking a lot about advertising, and of course
Speaker 5: they've got a partnership with Amazon. How is prime ads looking,
Speaker 5: How is that particular part of this newer part of
Speaker 5: the business doing.
Speaker 7: So Their ad business is still strong, still predominantly the
Speaker 7: sponsored ads things that you see on the actual website.
Speaker 7: There wasn't a lot of clarity about the contribution from
Speaker 7: the video ads that they've added. Analyser estimating somewhere in
Speaker 7: the realm of I think five billion was the last
Speaker 7: I saw for the year from that business. But it's
Speaker 7: a yeah, there wasn't a lot of clarity on exactly
Speaker 7: what it's adding. An Amazon emphasized, look where we're going
Speaker 7: to be lighter on the advertising, the most other programming
Speaker 7: and television and that sort of thing. If you watch
Speaker 7: Prime Video, you'll see fewer advertisements. So they're definitely, you know,
Speaker 7: moving delicately on that new revenue source.
Speaker 5: Yeah, don't want to put us off of our watching Spencer.
Speaker 5: It's so nice to have him here in New York.
Speaker 5: Spencer sofa on all things Amazon. Meanwhile, we are sticking
Speaker 5: on this earnings. Let's break down AMD. Look, it was
Speaker 5: giving a disappointing forecast. In particular, there was sluggishness when
Speaker 5: it came to gaming demand. We want to bring in
Speaker 5: Bloemberg Intelligence Senior analyst Kunjan Sabani, And it really seems
Speaker 5: to be Q two. Everyone slightly focusing in on because
Speaker 5: Q you are not good.
Speaker 8: Yeah, exactly, I mean fundamentally the already remains intact. It's
Speaker 8: that Sentimentally, it didn't beat enough the high lofty investor expectations,
Speaker 8: especially for the GPU numbers coming into the earnings. A
Speaker 8: second point is the rest of the non AI business
Speaker 8: is growing through a persistence slump, which is being heavily
Speaker 8: on all the AI goodness, so over all at the
Speaker 8: company level, actually, the EPs numbers for twenty four and
Speaker 8: twenty four came down at had bit. That's not what
Speaker 8: you want to see from a flying AI flying high name.
Speaker 4: I was trying to unpick what Lisa Sue is saying.
Speaker 4: It seemed in the first instance she was saying AMD
Speaker 4: is supply constrained. In other words, there's great demand for
Speaker 4: the AI accelerator product, they just can't get enough of them.
Speaker 4: She data said in the call. Actually that's not the case.
Speaker 4: The full year guy doesn't factor in any supply constraint.
Speaker 4: What is the story here with demand versus supply? The
Speaker 4: mi I three hundred X clarify from.
Speaker 8: Our perspective, the demand continues to run higher. Is just
Speaker 8: supply is not binary the way people think, so they
Speaker 8: do the second quarter supply is constrained. There will be
Speaker 8: more supply coming in in three Q and four Q,
Speaker 8: and there's only so much they can ship on the
Speaker 8: second half of the year, and The second point to
Speaker 8: remember is there's all these high, crazy high expectation numbers
Speaker 8: coming from the byside, where people are going in and
Speaker 8: evaluating how much supply is coming in and multiplying that
Speaker 8: number of by based on how.
Speaker 6: Many units the MD can ship.
Speaker 1: But that's not how it works.
Speaker 8: The supply when it comes in doesn't run one hundred
Speaker 8: person utilization and yield and et cetera. So it's not
Speaker 8: a linear equation that you can extrapolate.
Speaker 4: You hear that buyside, you've got crazy high expectations. Even so,
Speaker 4: do we think that AMD gave enough evidence they will
Speaker 4: take market share from Nvidia, which is so far ahead
Speaker 4: in the AI accelerator race.
Speaker 8: We believe so, like they've showcased enough engagements both at
Speaker 8: the cloud and the enterprise customer. And the second part
Speaker 8: is more important because the next wave of increasing capex
Speaker 8: is going to come from the enterprise customers, especially in
Speaker 8: the inference where the MI three hundred sort of have
Speaker 8: a more competitive positioning.
Speaker 4: Bloomberg Intelligence Senior analyst Kunjen Sabani check out his research
Speaker 4: on the Bloomberg terminal. Let's keep a conversation going with
Speaker 4: Daniel o'reagan, Managing Director, of Global Equities at Missuo Americas.
Speaker 6: Let's start with AMD.
Speaker 4: Let's set a baseline that expectations were high, and we
Speaker 4: got a raised forecast, and it doesn't.
Speaker 6: Seem to have been good enough.
Speaker 1: Yeah, precisely.
Speaker 9: I think your previous guests did an incredible job of
Speaker 9: outlining exactly what went down. Listen results were great, they
Speaker 9: were tremendous. I think in any other tape this name
Speaker 9: would be trading a little bit higher. I just think
Speaker 9: expectations got a little ahead of themselves. So she was
Speaker 9: very prudent last night, raising GPU guides from three and
Speaker 9: a half billion to four. Again, we heard that the
Speaker 9: bus I was looking for closer to six, maybe even seven.
Speaker 9: Long story short, as we're sticking with it, we like
Speaker 9: it down here. There are other levers to pull also too.
Speaker 9: If you're a massive hyperscaler looking to secure as many
Speaker 9: chips as possible, you definitely want to diversify your offerings
Speaker 9: instead of just having all your chips in one basket
Speaker 9: with Nvidia. You think there should be other people that
Speaker 9: supply your chips, and I think AMT probably fits that bill.
Speaker 5: Can you go into the other levers that you just
Speaker 5: said that they have to pull What in particular do
Speaker 5: you want to see pulled, Daniel.
Speaker 1: That's a great question.
Speaker 9: So the gaming side was actually one lackluster area for
Speaker 9: next quarter, But I think more importantly going forward, there's
Speaker 9: potential for an enterprise refresh, especially on the back of COVID.
Speaker 9: A lot of Fortune one hundred, Fortune five hundred companies
Speaker 9: have old legacy systems that they.
Speaker 1: Have to rip and replace.
Speaker 9: That could bode well for them in the second half
Speaker 9: of twenty twenty five or even earlier twenty twenty five.
Speaker 5: Okay, interesting, I want to pivot away therefore, not just
Speaker 5: well a boy from AMD, but more broadly looking at
Speaker 5: the cloud and some of those hyper scaleres that you
Speaker 5: say are going to be the end demand for an AMD.
Speaker 3: Amazon today coming out looking really.
Speaker 5: Strong when it comes to it's aws, when it comes
Speaker 5: to its AI focus is more broadly that the level
Speaker 5: that you want to see continuing to be pulled.
Speaker 3: By any Jesse.
Speaker 9: Yeah, So that conference call last night was one of
Speaker 9: the most polish I've listened to realllly in years, maybe
Speaker 9: on the back of the Metal one from two quarters ago.
Speaker 9: She basically said that this opportunity with AI is almost
Speaker 9: as tremendous as anything he's ever seen.
Speaker 1: And they're willing to spend tens of billions of.
Speaker 9: Dollars to reap the rewards later on, and they're not
Speaker 9: afraid to spend. And I wouldn't bet against these guys.
Speaker 9: We've literally seen it for eighteen years. They identify a
Speaker 9: massive technology, they invest aggressively.
Speaker 1: Profits and margins get hit a little bit, but.
Speaker 9: Then later on profitability hockey sticks as everybody comes to
Speaker 9: realize these guys are ahead of the curve. I think
Speaker 9: the same thing's going to happen with Amazon. And I
Speaker 9: also think the spending votes very very well for the
Speaker 9: supply chain names for example, like the NVIDIAs and the
Speaker 9: AMDs of the world, because they are the arms.
Speaker 1: Providers for this AI race.
Speaker 9: So I think the journal was positive for the entire
Speaker 9: AI ecosystem.
Speaker 4: Daniel, I'm interested in that thesis. You said it was
Speaker 4: the most bullish call from Andy Jesse and Brian Azowski
Speaker 4: you've heard in some time. Was it light on details though?
Speaker 4: I mean, think about what you just said. The one
Speaker 4: thing we didn't hear is any sort of tangible number
Speaker 4: for CAPEX other than Brian saying will be meaningfully higher
Speaker 4: in twenty two money full, right.
Speaker 9: I think that's a great question, and I don't think
Speaker 9: they wanted to pigeon and pole themselves with just specifically
Speaker 9: quantifying it. The fact that they used overwhelming or significant
Speaker 9: I think that gave them room to kind of fall
Speaker 9: down later on. At the end of the day, they
Speaker 9: know that there's a massive opportunity, They're okay to spend
Speaker 9: aggressively to take advantage of that. One thing that I
Speaker 9: think that could be different this time is back in
Speaker 9: previous investment cycles, they didn't have as much profitability as
Speaker 9: they do now. Amazon has multiple mature businesses, right, It's
Speaker 9: not just retail. They have retail, they have AWS now,
Speaker 9: they have advertising, they have logistics, they have all these
Speaker 9: other profitable businesses that I hope or think that could
Speaker 9: blunt the impact of profitability.
Speaker 1: And also too.
Speaker 9: On the call, they reiterated over and over again that
Speaker 9: they think they can do both. They think they can
Speaker 9: be efficient and they think they can drive growth at
Speaker 9: the same time. Let's see if they can thread the needle.
Speaker 9: But like I said earlier, I wouldn't bet against these guys.
Speaker 4: If AWS is the cash cow and the bright spot
Speaker 4: for everyone, what's the next best thing in the multifaceted business.
Speaker 1: Daniel, that's a great question. I really don't know.
Speaker 9: I think it's AWS for now. One area that was
Speaker 9: weaker last night in terms of guidance, I don't even
Speaker 9: think really matters. They said that the European consumer was lackluster,
Speaker 9: which her top line.
Speaker 1: I don't really talk.
Speaker 9: To any investors that are concerned much about their European
Speaker 9: consumer business. So again, I think the focus is on AWS,
Speaker 9: but going a little deeper, the operating profit for their
Speaker 9: retail business was tremendous, Like this was their bread and
Speaker 9: butter ten years ago, and it's like they're growing past
Speaker 9: that now. And to AWS, I think it's just to
Speaker 9: your dispenser's point earlier, it's just going to continue to
Speaker 9: drive the bottom line and the entire ecosystem is just
Speaker 9: going to get better.
Speaker 5: And meanwhile, they're not particularly articulating CAPEX when it comes
Speaker 5: to the amount of spending.
Speaker 3: But what we can glean from Microsoft.
Speaker 5: From Amazon, from IBM, from anyone that's providing some sort
Speaker 5: of cloud offering is that they spending in this spending big.
Speaker 5: What do we therefore worry about or be optimistic about
Speaker 5: when it comes to video that's coming or the other
Speaker 5: big chip names that need this sort of exuberance to
Speaker 5: suspend the market cap that we've continued to see.
Speaker 1: You know, that's a great question.
Speaker 9: We kind of say that it's the trillion dollar question,
Speaker 9: right is how many more quarters are these AI spenders
Speaker 9: going to get the hall pass from investors and tell hey,
Speaker 9: show me the money, show me the ROI. You spend
Speaker 9: tens of billions of dollars on this AI buildout, When
Speaker 9: are we going to get paid back?
Speaker 1: The jury is still out right, we.
Speaker 9: Don't know exactly what's going to happen Jess yet. How
Speaker 9: last night Andy Jesse did say a few times that
Speaker 9: they're already seeing billions of dollars of AI related revenue
Speaker 9: on AWS, so I don't even want to say it's
Speaker 9: brings shoots, but already making a good.
Speaker 1: Headway in that segment.
Speaker 9: And if you remember last week we had amazing az
Speaker 9: your numbers, is Microsoft ajurre actually accelerated year over year
Speaker 9: on a big number.
Speaker 1: Google Cloud obviously continues to do well.
Speaker 9: So we've now heard from three of the major cloud
Speaker 9: providers through the world's biggest hyperscalers come back with really
Speaker 9: tremendous results. It's just it gets me pretty biled up
Speaker 9: on space.
Speaker 5: Daniel Reagan, thank you for being built up with us,
Speaker 5: Managing director and Global Equities over at Azooho America's great
Speaker 5: to have some time with you.
Speaker 6: Here's some news time for talking.
Speaker 4: Tech Binance founder Changpeng Jow was ordered to spend four
Speaker 4: months in prison for failures that allowed cyber criminals and
Speaker 4: terrorist groups to freely trade on the world's largest cryptocurrency exchange.
Speaker 6: The sentence was far below.
Speaker 4: The three years requested by prosecutors who had sought to
Speaker 4: make an example out of Joo to a heavily scrutinized
Speaker 4: industry which is rebounding frankly from a slew of high
Speaker 4: profile scandals. Plus, Paramount Global agreed to extend contract renewal
Speaker 4: talks with Charter Communications, the owner of CBS and MTV,
Speaker 4: is said to have extended talks with Charter, one of
Speaker 4: the largest cable TV providers, the head of last night's
Speaker 4: deadline preventing its channels from going dark on the cable service,
Speaker 4: and Tesla's pivotal partnership with Buydo in China may amount
Speaker 4: to a u turn of sorts for Elon Musk, the
Speaker 4: Tesla CEO has long claimed his company can offer self
Speaker 4: driving without HD maps, but in order to go to
Speaker 4: market with FSD in China, he had no choice but
Speaker 4: to join with a local partner for a mapping license,
Speaker 4: which was by.
Speaker 6: Do carroc Oh.
Speaker 5: Boy, let's stick with Tesla because there is so much
Speaker 5: news which ed you and team have been breaking. The
Speaker 5: company actually eliminating almost its entire supercharger organization, which is built,
Speaker 5: you know, a vast network of public charging stations that
Speaker 5: basically every major automaker is in the process of trying
Speaker 5: to tap into in the United States. We've then had
Speaker 5: breaking news that well, the head of HR is now
Speaker 5: stepping down me most Crowdrudell is with us and Craig.
Speaker 5: Let's just start on the supercharger element of this, because
Speaker 5: this has got a lot of well the auto industry worried.
Speaker 3: I'm not sure of course whether internally at Tesla they're
Speaker 3: warned too.
Speaker 10: I think it's incredible in part because to Tesla's credit,
Speaker 10: this was a fantastic business that they built over more
Speaker 10: than a decade. I think, you know, you can sort
Speaker 10: of quibble with, you know, some of the promises made
Speaker 10: and promises not necessarily kept that Musk has offered over
Speaker 10: the years. But what this company has done is built
Speaker 10: a really solid and extensive, fast, reliable charging network. And
Speaker 10: you hear that, you know, from Tesla customers all over
Speaker 10: the place, you know, when they talk about why they
Speaker 10: love their car so much. This is one of the
Speaker 10: sort of main you know, positives that that is often
Speaker 10: pointed to is that you know, when you're in need
Speaker 10: of a top up, Tesla has, you know, the charging
Speaker 10: network to support you. And so for them to you know,
Speaker 10: make this sudden decision to get rid of, as you know,
Speaker 10: roughly five hundred people, including the head of this business,
Speaker 10: who they just put forward in front of investors a
Speaker 10: little over a year ago, as you know, an example
Speaker 10: of the deep bench they have behind me as really
Speaker 10: is leading to a lot of people scratching their heads.
Speaker 4: Craig, I want to bring you some breaking news that's
Speaker 4: happened since you've set in the chair. What I'm hearing
Speaker 4: and what I've reported just now with Donna Hole Bloomberg's
Speaker 4: DNA Howe, is that Tesla's most senior HR executive, the
Speaker 4: senior director, Ali Araballo, has actually left the company. My
Speaker 4: suspicion issue was fired, but this is another example of
Speaker 4: a high profile exec departure alongside a really big wave
Speaker 4: of layoffs.
Speaker 6: So I know that you're aware of this story, just
Speaker 6: give us your reaction.
Speaker 10: I think it's it is very interesting that this makes it,
Speaker 10: you know, two and two days of major you know,
Speaker 10: departures of senior women within this organization. I think it's
Speaker 10: a company that you know, for the most part, when
Speaker 10: you do tune into these events that Tesla puts on,
Speaker 10: it is very much male dominated. And I mentioned that
Speaker 10: Investor Day in March of last year, there were sixteen
Speaker 10: executives who were trotted out along with Elon Musk. Only
Speaker 10: two of those executives were women. I also just think that,
Speaker 10: you know, this latest sort of drumbeat of news just
Speaker 10: really sort of speaks to this idea of you know,
Speaker 10: as you reported ed just last week, of chaos, right,
Speaker 10: it really seems like a chaotic moment for this company
Speaker 10: where you know, they're trying to sort of fix problems
Speaker 10: that they don't have and not addressing problems that they
Speaker 10: do have.
Speaker 4: And there are many out there that would know Elon Musk,
Speaker 4: to their mind, knows what he's doing and that the
Speaker 4: testa will come through the other side. All we can
Speaker 4: do is report what's happening inside Bloomberg's created ol. Thank
Speaker 4: you very much. Now coming out, Microsoft reveals it invested
Speaker 4: in open Ai and it fears of falling behind Google
Speaker 4: in the race for AI dominance. We're bringing that Bloomberg
Speaker 4: reporting next.
Speaker 6: Stick with us. This is Bloomberg Technology.
Speaker 4: Microsoft's motivation for investing heavily and partnering with open Ai
Speaker 4: came from a sense of falling badly behind Google. That's
Speaker 4: according to an internal email released them in the Justice
Speaker 4: Department's antitrust case against the search giant.
Speaker 6: Joining us as Bloombergs.
Speaker 4: Mike Shephard out of DC leads the coverage of politics
Speaker 4: and tech. I love these investigations because I love the
Speaker 4: paper trail, and this was a pretty juicy one to
Speaker 4: get some details on.
Speaker 11: Yes, this really was, and it provides yet another window,
Speaker 11: actually specifically into the battle between the biggest tech companies
Speaker 11: over artificial intelligence. This is such an important and emerging
Speaker 11: area for them, and such a potentially lucrative one too.
Speaker 11: We saw it show up in the earnings reports that
Speaker 11: tumbled in last week. Cloud revenue was up for Microsoft
Speaker 11: and Google in part on AI services and that helped
Speaker 11: their shares, So this is an area where they want
Speaker 11: to maintain and edge an advantage. However, it's also an
Speaker 11: area of focus for regulators and prosecutors here. It did
Speaker 11: happen to be mentioned in this antitrust case against Google,
Speaker 11: and this is where the Microsoft internal email emerged.
Speaker 5: And interestingly that it was news organizations that really pushed
Speaker 5: for this document in its reductive form to be published. Mike,
Speaker 5: we now have Thursday Friday upon us. They're going to
Speaker 5: be the closing remarks right of this overall DOJ case
Speaker 5: against alphabet Yes.
Speaker 1: That's right, Carolina.
Speaker 11: My colleague Leah Nylam will be covering that very closely
Speaker 11: to see how this is going to end up. We
Speaker 11: won't have a ruling right away in the case, probably
Speaker 11: not until the summertime here, but this is one that
Speaker 11: we're watching very closely because it is part of a
Speaker 11: series of moves by the FTC and the Justice Department,
Speaker 11: which is handling this case against the largest tech companies,
Speaker 11: questioning whether they are engaging in anti competitive practices, and
Speaker 11: they're looking at them on a series of fronts. When
Speaker 11: it comes to artificial intelligence specifically, they're concerned that they're
Speaker 11: trying to hoover up or get involved with, or lock
Speaker 11: in relationships with these startups like open Ai, like deep
Speaker 11: Mind in a way that preserves their market dominance. And
Speaker 11: they're also worried about these interlocking directorships too among these
Speaker 11: AI startups as well.
Speaker 5: UK CMA Key and I to Mike Shepard just so
Speaker 5: on the nose when it comes to Washington, we thank
Speaker 5: you so much.
Speaker 4: Welcome back to Bloomberg Technology, Ed Lovelow here in San Francisco,
Speaker 4: Alan Hid.
Speaker 3: In New York. And let's just quick check on these
Speaker 3: markets because it's.
Speaker 5: A macro day, it's a FED day, and we are
Speaker 5: therefore perhaps a little bit of cautious trading ahead of
Speaker 5: that all important two pm then two thirty pm press
Speaker 5: conference FED chair.
Speaker 3: Power're looking at the NASA currently down some six.
Speaker 5: Tenths of a percent now, and in large part is
Speaker 5: the chips that continue to fall. We'll dig into moment
Speaker 5: why I'm looking at a ten year yield that actually
Speaker 5: catches a bid.
Speaker 3: That's as the US Treasury.
Speaker 5: Says, Look, we're not going to be increasing the pace
Speaker 5: of our auctions in the following quarters. So we're seeing
Speaker 5: supply side playing to that. We're down some two basis points.
Speaker 5: Even though we are still looking at the FED, I'm
Speaker 5: looking at what's happening on bitcoin. Look, some of this anxiety,
Speaker 5: some of this risk coming off the table, some of
Speaker 5: the ETF slowing in terms of their inflows. It's just
Speaker 5: pulling us down by almost five percent. We're below that
Speaker 5: six well now below fifty seven thousand dollars mark when
Speaker 5: it comes to bitcoin.
Speaker 3: Move on some of the individual movers.
Speaker 5: Now, I talked and I pushed ahead to the fact
Speaker 5: that the chip stocks are really underwater today. Why AMD. Look,
Speaker 5: we did see that tepid forecast. The market wanted to
Speaker 5: see more when it comes to the MI three hundreds
Speaker 5: in terms of their AI focus, and well, it's hitting
Speaker 5: across some of the other big chip names. So we're
Speaker 5: off by almost nine percent, let's call it on AMD.
Speaker 5: I'm looking at Amazon, though, managing to post what is
Speaker 5: strongest quarter for adlars growth that we've seen in several years,
Speaker 5: or at least in a year. We're seeing twenty five
Speaker 5: billion dollars being brought in. We're seeing overall still the
Speaker 5: growth of one point seven percent, managing to be a
Speaker 5: relief when it comes to Amazon and strong AI focus
Speaker 5: multi billion dollar revenue run rate, and then we have Pinterest.
Speaker 5: We're up twenty one percent on the day. Ed, this
Speaker 5: is the best day since October twenty twenty for this
Speaker 5: social media name, and we've finally got back to this
Speaker 5: revenue run rate in excess of twenty percent growth. We're
Speaker 5: seeing focus on gen Z. We're seeing a focus on shoppability.
Speaker 5: We're seeing a management managing to build momentum, so say
Speaker 5: the analysts, and we're going to be digging into it
Speaker 5: in a moment.
Speaker 6: I mean that is a big move.
Speaker 4: I did not have Pinterest on my earnings BINGO cards.
Speaker 4: So let's dive deeper into Pinterest and those first quarter
Speaker 4: sales user growth with Pinterest. CEO Bill ready a bill,
Speaker 4: terrific to have you on the program.
Speaker 6: The story seems quite clear.
Speaker 4: Pinterest pushing into shopping and Pinterest focusing on gen Z users.
Speaker 6: Right.
Speaker 4: My question to start what is the relationship in the
Speaker 4: activity between the shopping and the gen Z uses.
Speaker 12: Yeah, so you know we're finding our best product market
Speaker 12: fit in years. We've hit an all time high with
Speaker 12: users more than half a billion users and as you noted,
Speaker 12: gen Z is our largest demographic. It's now more than
Speaker 12: forty percent of our platform, and it's our fastest growing
Speaker 12: demographic as well. And at the core that growth with
Speaker 12: gen Z has been the rising actionability in the platform.
Speaker 12: Pinterest is where gen Z goes to shop, and as
Speaker 12: we've made Pinterest more actionable, so the people who can
Speaker 12: get to more of the things they're finding on Pinterest.
Speaker 12: We're seeing that work really well for users, where we've
Speaker 12: accelerated user growth for seven straight quarters now. But it's
Speaker 12: also cutting through for advertisers, where as you noted revenue
Speaker 12: grow twenty three percent this quarter, nearly doubling our revenue
Speaker 12: growth rate from last quarter. And so we're really seeing
Speaker 12: this be quite synergistic between users finding the things that
Speaker 12: they love on Pinterest and then advertisers finding this is
Speaker 12: a great place for them to meet users that are
Speaker 12: in market looking to shop and buy.
Speaker 5: And that's just some of the synergies that you've managed
Speaker 5: to bring to bear with Amazon, with Google, with.
Speaker 3: Those ad partnerships.
Speaker 5: Bill, how much of that advertising optic is thanks to
Speaker 5: these third parties.
Speaker 12: Well, you know, on the shop ability front, you know,
Speaker 12: historically Pintress has solved digital window shopping. It was hard
Speaker 12: to get to the things that you found on Pinterest.
Speaker 12: We have opened the stores, and in doing that, we're
Speaker 12: seeing that retailers broadly are finding great performance on Pinterest.
Speaker 12: At the core of our revenue acceleration has been our
Speaker 12: strength in low funnel actionability users that are clicking and buying.
Speaker 12: We more than double the number of clicks we sent
Speaker 12: to advertisers in Q four, and we did it again
Speaker 12: in Q one. That is broad based, but we are
Speaker 12: seeing our best strength with the largest, most sophisticated retailers
Speaker 12: that provide really.
Speaker 1: Great buying experiences.
Speaker 12: We're quite pleased with that, and we also see that
Speaker 12: the third party demand that we've brought onto the platform
Speaker 12: is doing exactly what it was intended to do, which
Speaker 12: is rounding out gaps in our auction and bringing more great, shoppable,
Speaker 12: biable content onto Pinterest so that when users find what
Speaker 12: they're looking for on Pinterest, they can easily click and
Speaker 12: buy it.
Speaker 4: This was a milestone quarter in the sense that global
Speaker 4: monthly uses past half a billion for the first time.
Speaker 4: You've put a lot of emphasis on gen z So
Speaker 4: look forward, what is the arc of user growth and
Speaker 4: what drives it, what brings in you users to your platform?
Speaker 12: Bill Yeah, so you know, as I mentioned, this is
Speaker 12: our seventh consecutive core of accelerating user growth. We've accelerated
Speaker 12: in every geography and with every generation that we track.
Speaker 12: Gen zs are fastest growing in our largest but you
Speaker 12: have millennials right behind that. So our improvement in the
Speaker 12: product has been broad based, and it is that actionability
Speaker 12: at the core. But I would say we are just
Speaker 12: getting going with that. We see much more building momentum
Speaker 12: in that as we look forward, and it's both the
Speaker 12: actionability as well as the positivity that.
Speaker 1: We're bringing into it.
Speaker 12: We've made tremendous strides with AI, and AI is bringing
Speaker 12: more relevant recommendations for users so they can take action
Speaker 12: on more of what they find. But it's also the
Speaker 12: case that we're tuning AI for positivity. We're tuning it
Speaker 12: to help users feel better not just in finding what
Speaker 12: they're looking to shop and buy, but in making sure
Speaker 12: that we're bringing inspirational content to them. So we've done
Speaker 12: things like inclusive AI, where we have skin tone filters
Speaker 12: so people can filter for things that will reflect them
Speaker 12: and including diversity by default in our feeds. We introduce
Speaker 12: body type AI where people can select body types so
Speaker 12: that they can find more things that fit well for them,
Speaker 12: and so we want to make it so that every
Speaker 12: person on Pinterest can see themselves on Pinterest. And so
Speaker 12: that's really leading to great strides.
Speaker 1: In both the.
Speaker 12: Relevance, the representation, and just people feeling positive when they
Speaker 12: spend time on Pinterest.
Speaker 4: So last night on the Amazon Media called, Brian Osowski
Speaker 4: was asked about Tmu and she in the context of
Speaker 4: competition with you guys at pinterest a little bit different,
Speaker 4: would you talk about Timu and Shean as potential partners?
Speaker 4: Are you seeing any uplift from Chinese advertisers?
Speaker 12: So apac cross border has been a contributor to our growth,
Speaker 12: but it's a nice contributor. You know, it's not overwhelming,
Speaker 12: but it's a nice contributor. But as I mentioned before,
Speaker 12: our strength and retail has been broad based. Retailers of
Speaker 12: all sizes are finding strength on Pinterest, and it's because
Speaker 12: they're seeing that doubling of clicks that we sent to
Speaker 12: advertisers a year on year in Q four and again
Speaker 12: in Q one. And it's also because they're able to
Speaker 12: meet hard to find shoppers like gen Z on Pinterest,
Speaker 12: and they're meeting those shoppers in a really unique moment
Speaker 12: because users come to Pinterest when they have clear intent.
Speaker 12: More than half the users on the platform, we're here
Speaker 12: to shop, but they haven't yet decided what to buy,
Speaker 12: so they're not necessarily searching for a specific brand or
Speaker 12: a specific item where maybe the decisions already made. They're
Speaker 12: coming here with much more general thoughts like cool outfits
Speaker 12: for spring, what to wear to Coachella, and those are
Speaker 12: great moments for advertisers to meet users because the user
Speaker 12: has clear intent but hasn't decided yet what to buy.
Speaker 12: And again we're seeing that broad based across retailers. China
Speaker 12: cross border is a contributor, but it's broad based strength
Speaker 12: for retailers.
Speaker 5: Focusing a little bit more on China for a moment, Bill,
Speaker 5: I mean, this is a unique time in social media
Speaker 5: more broadly, because it looks as though one of a
Speaker 5: key social media player might be falling away.
Speaker 3: Do you think more gen Z will come to.
Speaker 5: You because of TikTok potentially being banned completely no longer
Speaker 5: existing in the US.
Speaker 12: Well, when you look at why we are doing so
Speaker 12: well with gen Z, it is because we are doing
Speaker 12: something very different than the rest of social media. For
Speaker 12: gen Z, most of social media has the user in
Speaker 12: a lean back entertainment mode. We have the user in
Speaker 12: a lean forward mode with intent and purpose. And I
Speaker 12: mentioned tuning for positivity. You know, gen Z sees Pinterest
Speaker 12: as an oasis away from the toxicity they experience on
Speaker 12: much of the rest of social media. They know that
Speaker 12: social media has largely become comparative and performative. And if
Speaker 12: you go talk to gen Z about why they spend
Speaker 12: time on Pinterest, they'll say they go to other places
Speaker 12: on social media and see what others want them to be,
Speaker 12: what others expect them to be, and then go to
Speaker 12: Pinterest to discover what they want to be and invest
Speaker 12: in themselves with a small circle of friends. So that's
Speaker 12: already winning with gen Z. And we're not sitting around
Speaker 12: hoping for the demise of other platforms. We're just busy
Speaker 12: building something that makes people feel more positive, is going
Speaker 12: to give them a great experience, and that's winning, particularly
Speaker 12: of gen Z.
Speaker 5: Okay, so no clear ambition to capitalize in the uncertainty,
Speaker 5: but clearly seeing the flow of gen Z. What really
Speaker 5: always interests me, Bill is when you break down your
Speaker 5: numbers in terms of average users and where they are
Speaker 5: you're so dominant in the rest of the world, do
Speaker 5: you see US as the area of growth do you
Speaker 5: see internationally more the area of growth.
Speaker 3: Where do you see the expansion?
Speaker 12: So that's a great question. As you noted, we have
Speaker 12: approximately eighty percent of our eighty percent or more of
Speaker 12: our use outside the US, but only approximately twenty percent
Speaker 12: of our revenue outside the US. So the improvements we've
Speaker 12: made from the user perspective have been broad based. As
Speaker 12: I mentioned, we've accelerated users across every geography. On the
Speaker 12: modernization side, we are much further along in the US,
Speaker 12: and we are now starting to deploy those things internationally,
Speaker 12: and so we see international as a huge growth vector
Speaker 12: for us, both in terms of what we will bring
Speaker 12: to advertisers directly where we do first party selling, as
Speaker 12: well as where we're bringing in new sources of demand,
Speaker 12: either through third party demand like what we're doing with
Speaker 12: our Google partnership in international markets or what we're now
Speaker 12: doing with resellers in international markets where they can bring
Speaker 12: more local demand, which is going to be great for
Speaker 12: those advertisers, but also great for users that will find
Speaker 12: more shoppable content as more of those advertisers those international
Speaker 12: markets come onto our platform.
Speaker 5: Bill, great to catch up with you thanks to spending
Speaker 5: some time with USKS. Very money Pindras CEO Bill ready there.
Speaker 5: Meanwhile coming up that we're going to be joined by
Speaker 5: Renegade Partners co founder Rosanne Winsec about the.
Speaker 3: Firm's new fun They raise a lot where they're spending it.
Speaker 5: There's a rumot technology, so Pallenteer CEO Alex cart Sequoia's
Speaker 5: leader that of Boda venture capitalist Vinod Kozla, that among
Speaker 5: the Silicon Valley heavyweights, you're traveling to Washington this week
Speaker 5: for a summit on the role of AI and escalating
Speaker 5: competition between.
Speaker 3: The US and China.
Speaker 5: Now the Hill and the Valley Forum, as it's called,
Speaker 5: is sponsored by a group of vcs including Peter tielback
Speaker 5: to Founders Fund that seems to be the second iteration
Speaker 5: head and still gets.
Speaker 4: I've got some deja vu. I'm pretty sure we've done
Speaker 4: that one before. Let's stick in the world of private
Speaker 4: markets and vents capital. Renegade Partners, an early stage venture firm,
Speaker 4: just announced the close of it's fun Too with one
Speaker 4: hundred and twenty eight million dollars, bringing the total assets
Speaker 4: under management to two hundred and twenty eight million dollars.
Speaker 4: It's like to say, we're joined by Renegade Partners co
Speaker 4: founder and managing director Razan win Sec.
Speaker 6: Welcome. You are going to.
Speaker 4: Invest in what you're calling durable technology companies. What is
Speaker 4: a durable technology company?
Speaker 6: Hied?
Speaker 13: Thank you so much for having me. So when we
Speaker 13: think about what is a durable company, we're actually looking at,
Speaker 13: you know, what are markets that actually really matter here?
Speaker 13: What are markets that are large and still relatively untouched
Speaker 13: by technology that can support really large outcomes? You know,
Speaker 13: I think over the past few years, we've seen a
Speaker 13: lot of you know, software selling to software software selling
Speaker 13: to startups, and those companies have frankly like evaporated in
Speaker 13: this market turn And so one thing that we thought
Speaker 13: about a lot in our fund one, and we're thinking
Speaker 13: even more about in Fund two. Or what are those
Speaker 13: markets that actually really drive like meaningful parts of GDP
Speaker 13: and can actually move beyond you know, trends in venture
Speaker 13: capital and become lasting companies.
Speaker 6: So what is the secret source?
Speaker 4: So speak like, how is it that your position to
Speaker 4: identify a company that fits that profile? And you can
Speaker 4: go to your LPs and say, we're pretty confident that
Speaker 4: this fits the thesis.
Speaker 13: Yeah, you know, so we're generalists. We're very like sector agnostic,
Speaker 13: stage specific, but we like to kind of look at
Speaker 13: the market very broadly. So for instance, in our find one,
Speaker 13: we have companies like Aerospace Intelligence that sells into aerospace
Speaker 13: and defense, COPA Automation selling into PLC right into factories.
Speaker 13: So thinking about you know, on shoring and digital transformation.
Speaker 13: There companies like Auxiliar selling into biotech FP and A
Speaker 13: a great way to get beta access to the beta
Speaker 13: of that market without actually investing in a molecular a therapeutic.
Speaker 3: So we really try to.
Speaker 13: Think kind of big tops down and look for great
Speaker 13: companies that are going after big problems in those faces.
Speaker 5: Relatively competitive still in the earliest stages of VC. What
Speaker 5: do you do that makes you stand out? Rozan, how
Speaker 5: do you manage to be supporting some of these founders
Speaker 5: which increasingly to to us about bun out about worries
Speaker 5: about mental health issues.
Speaker 13: I know it is, Caroline, You're completely right, Like it
Speaker 13: is still very competitive there, even though the market feels
Speaker 13: softer than it did a couple of years ago. I mean,
Speaker 13: as we think about Renegade and like what we can offer,
Speaker 13: I always think about like, you know, you can't beat
Speaker 13: somebody else at their own games, So how do you
Speaker 13: play a game that they can't play? Right Like, we
Speaker 13: like to focus ourselves on being like a very bespoke
Speaker 13: boutique firm where founders get to work directly with the
Speaker 13: founders themselves. Right Like, if you are a founder led
Speaker 13: business and you're sitting on your board, you don't want
Speaker 13: an employee sitting next to you, you want another founder sitting
Speaker 13: next to you.
Speaker 1: Uh.
Speaker 13: We have really great alignment that way, right Like, we
Speaker 13: don't have a story about job security or you know
Speaker 13: around partnership dynamics because we all in the firm as well.
Speaker 13: We only make twenty investments per fund. That means, you know,
Speaker 13: only six or seven deals per year, and so we're
Speaker 13: really spending a lot of time with each and every
Speaker 13: company and you know, helping them where they need help
Speaker 13: and getting out of the way where they don't. We
Speaker 13: also have a great operating practice where we focus on
Speaker 13: you know, people and team. It's led by our incredible
Speaker 13: operating partner, a woman named Susan Albyn and and she
Speaker 13: really helps our companies think about team organs, team organ design, structure, compensation,
Speaker 13: building the hiring and firing machine. And often those are
Speaker 13: the things that are keeping early stage CEOs up at
Speaker 13: night because we kind of assume that they know how
Speaker 13: to build and run a team when often this is
Speaker 13: their first time.
Speaker 3: Yeah, we assume that they can be leaders and they
Speaker 3: get go.
Speaker 5: I'm interested those as to how you're helping those leaders
Speaker 5: and others within those startups to be able to pivot
Speaker 5: if they on an AI first business right now?
Speaker 13: Yeah, I mean I think, you know, I think there's
Speaker 13: a blessing and a curse today today you're being an
Speaker 13: AI first business. We've seen a lot of companies that
Speaker 13: are just frankly a thin wrapper on type of open
Speaker 13: AI and those businesses are not defensible, you know, I
Speaker 13: think really first and foremost, like you have to be
Speaker 13: thinking about what is actually driving value for your customer,
Speaker 13: what's actually driving OURI, what they're actually going to pay
Speaker 13: for after like you know, the AI innovation budgets dry up,
Speaker 13: and so frankly, you know, every company is going to
Speaker 13: be an AI company. It's just like every company today
Speaker 13: is a cloud company. We don't invest in companies because
Speaker 13: theyre cloud companies. Every company is a cloud company. AI
Speaker 13: is going to be the same way, right, So what
Speaker 13: are those products and services that AI can actually supercharge,
Speaker 13: that can do you know, different things than just a
Speaker 13: great SaaS business that's putting.
Speaker 3: AI into their product.
Speaker 4: You heard the story reported at the top of the segment. Yeah,
Speaker 4: some of your industry colleagues Pizza Teel then d Coosa
Speaker 4: going to d C. Do you think it's the job
Speaker 4: of vcs to do that?
Speaker 13: You know, I think it's important that are like the
Speaker 13: Silicon Valley is well represented on the Hill because frankly,
Speaker 13: what happens here has a massive impact in the US
Speaker 13: and in the world, you know, the world in total,
Speaker 13: and you know, I do think there is a role
Speaker 13: for it. You know, we have to remember like incentives
Speaker 13: drive behavior, so you have to think about what is
Speaker 13: everyone's incentive as you know, regardless of what they're doing.
Speaker 13: But I think it's important that we're thinking about AI,
Speaker 13: you know, at the cutting edge at the federal level.
Speaker 4: Renegay Partners co founder managing director as Sam Winset.
Speaker 6: Great to have you on the program. Thank you.
Speaker 5: It's the latest episode of The Circuit and Bloomberg Originals
Speaker 5: hosts and executive producer em Andy Chang. She sat down
Speaker 5: with the GM CEO Mary Burrow to discuss well why
Speaker 5: she's continuing to bet.
Speaker 3: Big on electric vehicles and autonomous driving particulous.
Speaker 14: We're still as an industry, we're in the early days.
Speaker 14: I think what we're still seeing is battery, battery chemistry,
Speaker 14: battery technology is still expensive, and because the vehicle's already
Speaker 14: a very expensive purchase for consumers, you know, it's getting
Speaker 14: continuing to get costs down while we continue to improve
Speaker 14: the technology. It almost feels like hype is slowing down.
Speaker 14: Do you feel like you're battling that like a sentiment?
Speaker 14: You know shift as well. I think it was overhyped
Speaker 14: and now it's probably under hyped and the truth is
Speaker 14: somewhere in the middle. But you know, again, yes growth
Speaker 14: has slowed, but it's still growing. You scaled back some
Speaker 14: other EV targets, mainly because of the battery manufacturing issues,
Speaker 14: Like why is that still such a challenge. We were
Speaker 14: making something new and I grew up in manufacturing, so
Speaker 14: I feel like we do have a lot of manufacturing expertise,
Speaker 14: but I think we took for granted some of the
Speaker 14: newer processes and we will not do that again.
Speaker 12: Yeah.
Speaker 14: Elon Musk has mocked traditional automakers for how long it
Speaker 14: took come to get into Eb's Was he right about that?
Speaker 14: You know, if I had a do over, I would
Speaker 14: have even though we were moving, I would have accelerated
Speaker 14: the pace. You know, Hindsight's twenty twenty Tesla stock is
Speaker 14: up more than thirteen hundred percent in the last ten years.
Speaker 14: GM is up like twelve thirteen percent. You have met
Speaker 14: or beat expectations thirty five out of last thirty six quarters.
Speaker 14: So when you look at the stock, does it ever
Speaker 14: piss you off?
Speaker 3: Yeah?
Speaker 14: It does, I mean because I but but again, I
Speaker 14: can get mad about it, and I can be upset
Speaker 14: and up frustrated, and believe me, I have those moments.
Speaker 14: You know, at the end, it's our responsibility. You can't
Speaker 14: go home and have a pity party.
Speaker 4: Watch The Circuit with Emily Chang tonight at six pm
Speaker 4: easton in New York on Bloomberg Television, or stream at
Speaker 4: eight pm E.
Speaker 6: On Bloomberg Originals. Let's stick with.
Speaker 4: GM, The company's eyeing billions in digital revenues with an
Speaker 4: alternative to Apple's car Play, which has become the default
Speaker 4: home screen of the center console and vehicles ranging from
Speaker 4: Ford's to Ferrari's GM's platform called Altifi was rolled out,
Speaker 4: but not without a few hiccups. Joining us now is
Speaker 4: the author of that terrific deep dive Bloomberg's Dave as well,
Speaker 4: which out of Detroit. You paint the picture of Michael
Speaker 4: Wardrum who's picked up this beautiful sixty two thousand dollars
Speaker 4: Chevy Blazer EV. He's so proud of it, and he
Speaker 4: sits in the cockpit, in the driver's seat, no Apple
Speaker 4: car play, And therein lies the strategy from GM.
Speaker 2: That's right. They want to pull people into their cars.
Speaker 2: And actually, I've driven the Blazer Rev. It is quite
Speaker 2: a good vehicle. Waldron's assessment is right. But they're making
Speaker 2: this gamble that people will like the cars get in,
Speaker 2: and that they can overcome this consumer inertia and just
Speaker 2: pull people away from CarPlay, and they're better Bely, this
Speaker 2: CarPlay will project what your phone does, which is music, messaging, podcasts,
Speaker 2: that sort of thing. But they can do so much
Speaker 2: more with their own internal system. I like how the
Speaker 2: head software guy in an interview with me put it
Speaker 2: from Rivian said, we don't want our infotainment system in
Speaker 2: a arriva and to be the same thing that's in
Speaker 2: every rental car, and GM is taking the same approach
Speaker 2: with this, but that still means you have to execute
Speaker 2: a better system than Apple has, and so far GM's
Speaker 2: had a tough time with that. The new system since
Speaker 2: they brought it back, has had no issues since they
Speaker 2: started selling it again in March, but it was a
Speaker 2: very rough start for them. And even after that, if
Speaker 2: they can build it well, if they can keep the
Speaker 2: software from being buggy, they're still going to have to
Speaker 2: get consumers to decide that they don't need CarPlay, and
Speaker 2: that can be a tough marketing challenge.
Speaker 5: Tough marketing challenge, but a lot to be rewarded for
Speaker 5: when it comes to digital revenue in the future. We
Speaker 5: can see why they're trying to tussele it out with Apple.
Speaker 5: David Welch, it's a great deep dive. Please go read it.
Speaker 5: GMI billions in digital revenue with CarPlay alternative.
Speaker 3: Meanwhile, look, that does it for this edition of Bloomberg Technology.
Speaker 5: We've had CEO conversations, we've deep dived into the earnings,
Speaker 5: and there's.
Speaker 4: More to come in Yeah, and you forget that we
Speaker 4: have more CEOs coming up twenty four hours time in
Speaker 4: the show cloudcom reports tonight, then you've got Apple Thursday.
Speaker 4: There is so much more still to come recap.
Speaker 6: This show, though, is a good one.
Speaker 4: On the podcast, Apple, Spotify, and iHeart and of course
Speaker 4: the pod goes onto all the Bloomberg platforms as well.
Speaker 4: Thanks everyone for tuning in from San Francisco and New
Speaker 4: York City.
Speaker 6: This is Bloomberg Technology.