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Speaker 1: From the heart of where innovation, money and power collide

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Caroline Hyde and Ed Ludlow.

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Speaker 2: Live from New York.

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Speaker 3: This is Bloomberg Technology coming up. Trade tensions they ramp

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Speaker 3: higher as US and China accused one another of violating

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Speaker 3: recent agreements.

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Speaker 2: If we bring you the tech impact, that's.

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Speaker 3: As big tech stocks have actually been back in the

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Speaker 3: driver's seat, outperforming the S and P five hundred for.

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Speaker 2: Eight consecutive weeks.

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Speaker 3: But Tesla is under pressure with sales falling aggressively in

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Speaker 3: France to a three year low.

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Speaker 2: Can musks return from.

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Speaker 3: Doge turning around for first, let's checking on these markets

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Speaker 3: which websaw on the day. We were in risk aversion

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Speaker 3: mode a little bit earlier, and now we tread backwater

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Speaker 3: to flat. Remember May was a stellar month and the

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Speaker 3: Nazarck Cup nine percent for the S and P five hundred,

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Speaker 3: having one of its.

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Speaker 2: Best Mays in years.

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Speaker 3: But we are up just a tenth of a percent

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Speaker 3: as we try and shake off what is anxiety around

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Speaker 3: trade tensions and we get a dose of manufacturing reality.

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Speaker 3: Is manufacturing numbers come in weak. Looking at the Golden

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Speaker 3: Dragon Index. This is, of course the NASA Golden Dragon.

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Speaker 3: Looking at some of the tech giants in China, that

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Speaker 3: too recovers up a tenth of a percent. Move on

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Speaker 3: to individual movers because there are some laggards out there,

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Speaker 3: and notably Tesla has been off today. More broadly, and

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Speaker 3: we are going to keep a keen eye on what's

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Speaker 3: happening with two point seven percent to the lower as

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Speaker 3: we worry about sales in France. We'll dig into that

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Speaker 3: later in the show. Byd this is the Wrong Taker.

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Speaker 3: We'll bring you what bid shares have been doing. Their

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Speaker 3: depository receiats have been basically trading flat, but here we

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Speaker 3: have it off by about two tenths of a percent.

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Speaker 2: Was lower in Chinese trading.

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Speaker 3: That as the competition fierce competition is getting some criticism

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Speaker 3: from the government itself and government related entities. But focusing

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Speaker 3: more broadly on China, not just the EV sector, We're

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Speaker 3: going to look at what it has been happening with

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Speaker 3: the Golden Dragon index. Look, as we say, just recovering,

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Speaker 3: but after the last three days that has been having

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Speaker 3: let's call it a plummet following remarks. Now we know

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Speaker 3: of President Trump saying that Beijing is violated at trade talks.

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Speaker 3: More pain could be install course, as China issues its

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Speaker 3: own claims that the US has preached recent deal itself grimgs.

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Speaker 2: Mike Shepard joins US.

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Speaker 3: Look, the tensative agreements of Switzerland are unwinding themselves somewhat.

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Speaker 4: Well, they really are, Cara. We are seeing this datent

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Speaker 4: that have been achieved in Geneva just a few weeks

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Speaker 4: ago rapidly fade away. On Friday, we saw President Donald

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Speaker 4: Trump accuse Beijing of violating the spirit of that understanding

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Speaker 4: without offering too many specifics, but his trade advisor Jamison

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Speaker 4: Greer helped fill in the blanks, and the US concerns

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Speaker 4: seemed to center on what they see as Beijing's failure

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Speaker 4: to lift barriers on exports of rare earth minerals to

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Speaker 4: the US quickly enough whatever was discussed in Switzerland. On

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Speaker 4: the flip side, though, we are seeing China come back

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Speaker 4: very strong today accusing the US of violating its promises

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Speaker 4: under that agreement with some recent steps, and we saw

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Speaker 4: those with the American move to unveil new guidelines that

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Speaker 4: are coming on AI chip export controls, and that included

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Speaker 4: a warning to US allies against using Huawei's Ascend chip,

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Speaker 4: which is a challenge of course to Nvidia. The US

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Speaker 4: has also moved to restrict exports and sales of chip

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Speaker 4: design software to China, which is a big deal for

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Speaker 4: China's own AI and tech ambitions. And then finally the

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Speaker 4: icing on the cake of course, the revocation of Chinese

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Speaker 4: student visas. All of those things in China's bill of

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Speaker 4: goods against the US this morning, and this raises questions

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Speaker 4: about whether hjion Paying and Donald Trump will actually speak

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Speaker 4: by phone as Donald Trump has said he would like

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Speaker 4: to and mind.

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Speaker 3: What's so notable is that two of those moves of

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Speaker 3: the three that you outline completely tech focused. Is it

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Speaker 3: going to be technology that remains the eye of the

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Speaker 3: storm when this attack.

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Speaker 4: Well, it's either the eye of the storm, Caro, or

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Speaker 4: the thing that is driving the direction of the storm.

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Speaker 4: Because remember this comes on top of years of escalating

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Speaker 4: restrictions on exports to China imposed by the US and

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Speaker 4: really also twisting allies arms to take part in those

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Speaker 4: as well. Remember this is not just semiconductor exports, it's

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Speaker 4: also sales of chip making machinery to Beijing. All of

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Speaker 4: this is designed to curb China's ambitions in areas like

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Speaker 4: artificial intelligence, and this is really starting to take a

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Speaker 4: toll in a way politically between Washington and Beijing, and

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Speaker 4: we're seeing tech emerge as this flashpoint and could be

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Speaker 4: what unravels whatever understanding may have emerged engine Even now,

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Speaker 4: there is a lot of time before the ninety day

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Speaker 4: pause expires, and the two sides still could find a

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Speaker 4: way back to the bargaining table and to maybe have

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Speaker 4: that call between the two leaders. But right now the

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Speaker 4: direction of travel is not heading in that way, at

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Speaker 4: least from what we are seeing.

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Speaker 3: Caro make Shepherd breaking it down, We thank you, and

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Speaker 3: let's stick with how markets are reacting, but more broadly,

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Speaker 3: how they should be thinking about this trade uncertainty. An

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Speaker 3: expert is Eliza Toovin, managing director at Gano Global. We

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Speaker 3: turn to your years of advising government, the CIA, and

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Speaker 3: of course, more broadly the field of enterprise. How bad

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Speaker 3: is this looking? How much we were turning to escalation now?

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Speaker 5: Hi, Caroline, great to be on with you, and I

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Speaker 5: agree with Michael Shepherd that the honeymoon.

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Speaker 2: We saw coming out of Geneva.

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Speaker 5: A few weeks ago is now shattered and we're back

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Speaker 5: in this cycle of escalation between the US and China,

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Speaker 5: and I agree with you that at the center of

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Speaker 5: this is technology. What's interesting about China's very strenuous reaction

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Speaker 5: to the US export controls on the Huawei assnship is

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Speaker 5: their propaganda apparatus has long been arguing that the US

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Speaker 5: export controls are ineffective and that China can work around them.

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Speaker 5: But I think the level of emphasis they're putting on this,

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Speaker 5: you know, the volume at which they're really screaming for

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Speaker 5: these things to be removed, indicates just how effective and

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Speaker 5: how painful they are on China.

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Speaker 6: So we're going to be.

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Speaker 5: Seeing to see, watch to see how the US reacts

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Speaker 5: going forward. China is trying to press the US very

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Speaker 5: hard to make more concessions. After Geneva, the tariffs came

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Speaker 5: down significantly, but really at the heart of those tensions

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Speaker 5: were China's export control on rare earth and then the

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Speaker 5: US export controls on AI chips and related tooling.

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Speaker 2: Let's go to.

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Speaker 3: AI chips first before we get to rares, because there's

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Speaker 3: not only the criticism coming from China but some US companies.

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Speaker 3: I just think of what Jensen Wong was telling our

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Speaker 3: own ed Ludlow last week how much basically we're forcing

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Speaker 3: China to innovate, and how he longs to be able

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Speaker 3: to access that much.

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Speaker 2: Do you ever see that happening.

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Speaker 5: I think it's all about this scale of compute that's needed.

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Speaker 5: China can always find workarounds through smuggling, through making some

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Speaker 5: of their own chips, but it's really all about scaling,

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Speaker 5: and as you talk about on your show a lot,

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Speaker 5: really being able to make enough chips to supply the

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Speaker 5: rapidly escalating demands of compute in this age of AI

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Speaker 5: is at issue, and that's where the US still has

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Speaker 5: this very large.

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Speaker 2: Lead just being able to scale up.

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Speaker 5: So if China is able to extract any additional concessions

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Speaker 5: from the US so that they can get more chips legally,

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Speaker 5: that's going to help them kind.

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Speaker 2: Of shrink the gap faster.

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Speaker 5: However, if the US keeps these export controls in place

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Speaker 5: and enforces them strictly and gets allies and partners on

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Speaker 5: board on some of the tooling, some of the aspects

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Speaker 5: where countries like Japan and the Netherlands and Germany are strong,

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Speaker 5: then this gap between the US and China compute stance

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Speaker 5: to lengthen over the coming months and years.

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Speaker 3: But both sides have chips on the table here that

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Speaker 3: they can play, and play hard. I was just at

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Speaker 3: the Reagan National Economic Forum on Friday where there was

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Speaker 3: a lot of anxiety just how confident Chinese leadership is

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Speaker 3: at the moment that they too can fight back. Liza,

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Speaker 3: what about the rare earth's signals? How much pain could

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Speaker 3: that levee on US industry itself as well?

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Speaker 5: We know that the auto manufacturers and the defense manufacturers

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Speaker 5: were they came crying to the US government before the

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Speaker 5: Geneva talks and said that these things are starting to

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Speaker 5: impose pain and in starting to impose work stoppages, and

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Speaker 5: that's something.

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Speaker 2: That it's a gray rhino.

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Speaker 5: I mean, the US national security establishment has known about

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Speaker 5: this dependency on China for rare earth processing for years,

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Speaker 5: but they haven't come up.

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Speaker 2: With a solution at scale. But I think what was.

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Speaker 5: Interesting over the last month is that China has broken

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Speaker 5: the glass on actually using this coercive instrument. It's actually

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Speaker 5: now ratcheting up pressure it. Shei Jinping has an appetite

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Speaker 5: for leverage, and now that he knows he has this

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Speaker 5: leverage over the US you're going to see him pushing

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Speaker 5: again and again to kind of recycle this leverage and

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Speaker 5: try to extract more concessions from the US. But rather

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Speaker 5: than bending over and giving China more concessions, over the

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Speaker 5: last couple of weeks, you've seen them doubling down with

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Speaker 5: this empowered Commerce department, strengthening and broadening the export controls.

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Speaker 3: So you don't expect the US to blink in this moment.

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Speaker 3: What advice do you give to the private sect right

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Speaker 3: now as to how tough this could get for access

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Speaker 3: to RAS and indeed, in the flip side of you're

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Speaker 3: a Chinese company access to US chips.

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Speaker 5: Well, I think that the private sector needs to remember

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Speaker 5: that this isn't just a competition about tech and trade,

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Speaker 5: I mean tariffs and technolog The export controls, of course,

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Speaker 5: are incredibly important to markets, but perhaps even more important

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Speaker 5: is to watch the geopolitical tensions that are unfolding in

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Speaker 5: the Indo Pacific around Taiwan in the South China Sea.

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Speaker 5: Secretary of Defense Pete Hegseth, just on Saturday at the

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Speaker 5: Shangri Law Forum was warning that a Taiwan crisis could

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Speaker 5: be imminent, and we know that China frequently has military

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Speaker 5: drills kind of these practice exercises around Taiwan and in

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Speaker 5: the South China Sea, and it's had the habit lately

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Speaker 5: of not announcing these in advance, so it's not giving

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Speaker 5: markets heads up that these are going to happen.

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Speaker 2: Why does it do that.

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Speaker 5: It wants to preserve ambiguity if outside observers aren't sure

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Speaker 5: if this is just a drill or if it's something

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Speaker 5: more an actual rehearsal for something like a blockade. That's

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Speaker 5: very worrisome because it shrinks the window of warning. And

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Speaker 5: that's something that we're watching very closely at Garno Global

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Speaker 5: kind of the links between these technology export controls terrors

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Speaker 5: and the potential for some kind of supply chain disrupting

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Speaker 5: crisis around Taiwan that could prevent the chips from getting

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Speaker 5: out of Taiwan, perhaps for a couple of weeks or longer.

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Speaker 3: Well, that's crucial to our audience, So thanks for making

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Speaker 3: that link. Visitobin of course, managing director at Garno Global.

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Speaker 3: Great to have some time with you. Coming up, let's

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Speaker 3: talk about chips more. But Broadcomm's results this week, they're

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Speaker 3: likely to actually show ai demand is still booming. We

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Speaker 3: can talk about what's expected, how it could impact the

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Speaker 3: wider market. This is bloombag technology. Let's talk about how

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Speaker 3: the same tech giants that contributed to the S and

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Speaker 3: P five pounders decline in April, they are now driving

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Speaker 3: the recovery in US equities. Just taking video and put

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Speaker 3: a bow on a better than expected earning season for

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Speaker 3: big tech last week by delivering a strong outlook for

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Speaker 3: revenue despite US restrictions on sales of its to China.

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Speaker 2: This is as we expect.

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Speaker 3: Earning some Braolcom this week, you see the shares are

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Speaker 3: also trading higher.

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Speaker 2: Lue Meg's run.

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Speaker 3: Bastantaker has been writing about how the Magnificent Seven in

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Speaker 3: particular have helped bounce back of our lows some phenomenal

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Speaker 3: recovery numbers.

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Speaker 7: Hey, thanks for having me. So this earning season was

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Speaker 7: a real test for big tech, especially given just how

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Speaker 7: uncertain the backdrop has become, given tariffs, given all sorts

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Speaker 7: of geopolitical tensions, given concerns about AI spending in the

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Speaker 7: ROI from AI, and I would say that broadly speaking,

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Speaker 7: this group passed with flying colors. I'd say the notable

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Speaker 7: exception was Apple, which is dealing with a number of

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Speaker 7: its own sort of idiosyncratic issues. But the major companies

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Speaker 7: like Microsoft, Nvidia, Meta Alphabet quite strong across the board,

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Speaker 7: showing pretty positive trends.

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Speaker 6: And these are all companies.

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Speaker 7: That have allowed the market to really recover off the

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Speaker 7: low that we saw early in April.

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Speaker 3: It's interesting that we're not back to our record highs.

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Speaker 3: We're actually inching in on them.

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Speaker 8: Ryan.

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Speaker 3: Meanwhile, looking at the S and P five hundred, the

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Speaker 3: valuation story, that's starting to get a little dicey, right

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Speaker 3: when you're looking at magnificent seven names.

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Speaker 7: Yeah, so I'd say these names got pretty cheap by

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Speaker 7: a lot of metrics in the whole tear off cell

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Speaker 7: off in early April. They have come back quite dramatically,

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Speaker 7: I think in videos up something like forty five percent

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Speaker 7: or so since that low. So these are pretty remarkable

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Speaker 7: gains and it has come back in the valuation. But

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Speaker 7: I would say sort of the countering argument to this

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Speaker 7: is growth is expected to remain pretty strong for a

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Speaker 7: lot of these companies, and if you look at something

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Speaker 7: like the PEG ratio, they are all treating at fairly

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Speaker 7: modest ratios on that metric. So the valuations have come

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Speaker 7: back some but the growth that was just affirmed in

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Speaker 7: these most recent reports also pretty positive.

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Speaker 3: We're looking at the moment of how pricey perhaps they

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Speaker 3: are from a price to forward looking earnings perspective at

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Speaker 3: least Umeg's ran for Selca.

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Speaker 2: It's great to have you on as always.

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Speaker 3: Let's get you even more of a take here and

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Speaker 3: particularly on AI demand what it means for certain companies

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Speaker 3: about to give us their numbers. Angelo Zeno's with us

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Speaker 3: VPN senior equity analyst over at CFRA Research. We think,

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Speaker 3: think about how in Nvidia helped the market recover. We

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Speaker 3: saw the numbers looking good. What about Broadcom as well?

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Speaker 3: We're still going to get AI optimism there.

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Speaker 9: Yeah, so thanks for having me, Caroline, and I think, yeah,

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Speaker 9: to your point, I think it's going to be very strong.

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Speaker 9: We're looking for top line growth of about twenty percent

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Speaker 9: here for the for the April quarter. And listen, I

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Speaker 9: think when you kind of look overall the trends that

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Speaker 9: we've seen here over the last couple couple of weeks

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Speaker 9: or you know, since Q one earning season really starting

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Speaker 9: with you know, Alphabet and Microsoft at the start of

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Speaker 9: earning season up until in video last week, the trend

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Speaker 9: on the compute side of things is I think much

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Speaker 9: stronger than anybody had anticipated, and really something that Gentsen

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Speaker 9: Wong last year, really last week really pounded the table on.

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Speaker 9: So when you kind of think about the drivers here

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Speaker 9: specifically for you know, the AI semi names here, over

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Speaker 9: the next couple of years, it really is going to

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Speaker 9: be tied to compute and the higher demand for computer

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Speaker 9: is going to drive higher capital spending plans, right, which

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Speaker 9: is what we saw Q one earning season. So we

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Speaker 9: think those trends remain intact here. For broadcams specifically, they've

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Speaker 9: got to buy a sixty forty split in semis versus software,

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Speaker 9: So the semi side will continue to drive that demand.

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Speaker 9: But software shouldn't be ignored because the profitability there and

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Speaker 9: growth continues to be very good.

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Speaker 3: I mean, we're expecting strong things from broad Comm you too.

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Speaker 3: Look your top semi conductive names are in Video and Broadcom, AMD, Marvell.

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Speaker 3: I'm looking at how much some of those names have

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Speaker 3: already driven the S and P five hundred recovery. A

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Speaker 3: great chart from Ryan's story is that in Vidio makes

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Speaker 3: up twelve percent. Basically, the S and P five hundred

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Speaker 3: is rebound since April, but swiftly after them was Microsoft

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Speaker 3: that you named as being a winner of late broadcom

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Speaker 3: some five percent.

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Speaker 2: But is the valuation getting a little too.

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Speaker 3: Rich now given the amount of geopolitical anxiety we're just

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Speaker 3: talking about with Eliza Tobin.

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Speaker 9: Yeah, I mean, I think as far as the valuation

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Speaker 9: is concerned, you know, it's it's not as attractive as

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Speaker 9: it was four to six weeks ago. But I will

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Speaker 9: tell you that the valuations has just got you know,

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Speaker 9: just hit you know, basement level values. I mean, you

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Speaker 9: were talking about Nvidia at one point trading about seventeen

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Speaker 9: eighteen times on our twenty twenty six estimate.

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Speaker 10: They're now try closer.

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Speaker 9: To about twenty four to twenty five times on twenty

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Speaker 9: twenty six expectations. And I will tell you this, the

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Speaker 9: visibility again is improving here has improved of the last

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Speaker 9: couple of weeks, whether it be on the trade side

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Speaker 9: of things, improving commentary on trade, or whether it be

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Speaker 9: you know, just from the reiteration in terms of capex

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Speaker 9: spens plans for some of these hyperscalers. Now, I will say,

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Speaker 9: as far as you know what to look out for

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Speaker 9: here on the geopolitical side of things, A lot is

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Speaker 9: going There are a lot of moving parts here. Over

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Speaker 9: the next couple of weeks, obviously we want to hear

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Speaker 9: about the US China discussions. But as far as semis

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Speaker 9: are pincerned, there's a two thirty two semiconductor investigation that

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Speaker 9: is ongoing right now. We expect to get more clarity

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Speaker 9: in terms of what is what that's going to look

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Speaker 9: like as far as tariffs are concerned here over the

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Speaker 9: next two months or so. So it's waiting simo. But

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Speaker 9: our view you're going to see a permanent tariff on

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Speaker 9: the semiconductor industry when that gets unveiled. Our base case

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Speaker 9: right now is about a twenty five percent tariff.

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Speaker 3: What about the smartphone industry, because actually Apple has contributed

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Speaker 3: to the reprieve and the S and P five hundred,

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Speaker 3: it's one of your top names for hardware. But boy,

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Speaker 3: we're wondering whether it's going to get individual tariffs of

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Speaker 3: twenty five percent landed on it, not to mention maybe

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Speaker 3: Samsung gets the same though.

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Speaker 9: Yeah, so you know, we're not looking for an individual

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Speaker 9: tariff on that side of things. But our view here

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Speaker 9: is they you know, they fall under the national security

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Speaker 9: umbre umbrella of the two thirty two semiconductor investigation, similar

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Speaker 9: to many other hardware names that are right now exempt from.

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Speaker 10: A lot of the tariffs.

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Speaker 9: But that said, if we're assuming something along the lines

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Speaker 9: of a twenty five percent, you know, based tariff or

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Speaker 9: two thirty two, that would imply that Apple probably has

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Speaker 9: to increase the price of its iPhone seventeen this fall.

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Speaker 9: Our view is probably along the lines of at least

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Speaker 9: fifty dollars or so. So again, we have to wait

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Speaker 9: see to see how all this stuff really plays itself

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Speaker 9: out on the geopolitical side of things, But our view

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Speaker 9: is there's going to be some sort of permanent tariff

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Speaker 9: that goes into effect for the hardware companies and specifically Apple,

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Speaker 9: and Apple we think is best positioned to offset some

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Speaker 9: of those higher tariffs because of their brand recognition and

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Speaker 9: because of their pricing power.

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Speaker 3: So angelo, if an investor doesn't have the exposure they'd

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Speaker 3: like in these names, should they buy at this point?

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Speaker 9: I mean, I think that's a good question. You know,

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Speaker 9: we look at it right now in the sense that

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Speaker 9: we're looking more for a near term, you know, digestion period.

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Speaker 9: The dangerous thing with that is you just don't know

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Speaker 9: what you're going to get in a day in, day

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Speaker 9: out basis because of the geopolitical environment right now. So

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Speaker 9: if you don't own any of these names right now,

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Speaker 9: our view is you do want to buy some of

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Speaker 9: these AI semi oriented names because they.

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Speaker 10: Are going to really drive the.

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Speaker 9: Earnings potential for the tech sector here over the next

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Speaker 9: two to three years, specifically Nvidia and Broadcom, as well

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Speaker 9: as some of the others smaller names, but Nvidia and

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Speaker 9: Broadcom would kind of be two of the top names

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Speaker 9: with the best visibility out there. And even if you

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Speaker 9: see some of these negative headwinds will whether it be

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Speaker 9: tied to the two thirty two semi conductor investigation or

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Speaker 9: something on the trade side of things. Ultimately we think

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Speaker 9: this stuff works itself out and the earnings potential is

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Speaker 9: so great that you know, two to three years down

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Speaker 9: the road, these stocks should be significantly higher than where.

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Speaker 10: They are now.

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Speaker 2: We get those earnings for Broadcom.

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Speaker 3: On Thursday after the bell, Angelo Zino a busy week

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Speaker 3: ahead cfr A Research.

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Speaker 2: We thank you.

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Speaker 3: Samsung well, it's nearing a wide ranging deal to invest

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Speaker 3: in Perplexity AI and put search technology from the AI

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Speaker 3: startup at the very forefront of the South Korean company's devices.

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Speaker 3: It's according to people familiar, the two companies are already

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Speaker 3: in talks to pre load Perplexities app and Assistant on

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Speaker 3: upcoming Samsung devices who like Seth Figeman joins us for

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Speaker 3: more on the story, and we knew that they struck

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Speaker 3: the still with Motorola Samsung ongoing conversation. How deeply into

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Speaker 3: twine will they become?

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Speaker 11: Yeah, I think this is even more expensive than Mogo Motorola.

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Speaker 11: It's about them being preloaded on devices, which matters a lot,

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Speaker 11: But with Samsung, it's also integrating into its assystem, product,

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Speaker 11: into its browser, and of course just preloading on Samsung devices. Generally,

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Speaker 11: if you're Google right now, I think if they're setting

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Speaker 11: up a little bit straighter right now, there's a big

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Speaker 11: difference between being preloaded and the default service, which is

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Speaker 11: what Google has paid for for years and quite expensively.

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Speaker 11: But this is a step in that direction, and given

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Speaker 11: the anti trust scrutiny on Google, I would be a

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Speaker 11: little bit concerned.

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Speaker 3: I mean, of course that anti trust discussion of what

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Speaker 3: ultimately might be the policies they have to enact to

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Speaker 3: appease the judge.

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Speaker 2: I mean that wrapped up on Friday.

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Speaker 3: Analysts are deeply concerned about what all of this means

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Speaker 3: for alphabet How much does this also depend on Perplexity

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Speaker 3: getting some money from Samsung.

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Speaker 11: Yeah, I think that's part of the broader tie up here.

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Speaker 11: So we have previously reported that Perplexity is close to

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Speaker 11: raising about five hundred million dollars like a fourteen billion

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Speaker 11: dollar valuation. Samsung could be one of the larger investors

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Speaker 11: in that deal, and that strikes as part of a

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Speaker 11: much larger tie up between these two companies.

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Speaker 3: How does that fourteen billion dollars stack up? Because like

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Speaker 3: we've become some numb to these.

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Speaker 2: Figures because it's the enormous over to open hahard.

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Speaker 11: It's one of the largest AI players out there right now,

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Speaker 11: but it's still this is a really competitive environment. Not

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Speaker 11: only are they going up against Google, but going up

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Speaker 11: against open ai and others who are moving into real

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Speaker 11: time search but being more deeply intrigated into devices than

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Speaker 11: millions of people use. That is a really big leg

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Speaker 11: up in that race.

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Speaker 3: And people who loved Perplexity in many ways it is

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Speaker 3: one of the first that offered you where the information

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Speaker 3: was coming from but they've had their own copyright issues.

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Speaker 6: As well, Right, that's true.

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Speaker 11: I think Perplexity's main thing that was that they have

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Speaker 11: great design. You know, it's not so much that they

436
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Speaker 11: built a better model than Opennie are Google, but they

437
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Speaker 11: figure out how to package it in a really compelling way.

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Speaker 11: That seems to be drawing fans not just from consumers

439
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Speaker 11: but from the hardware companies.

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Speaker 2: How soon could this all be announced?

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Speaker 11: As soon as this year for devices?

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Speaker 6: Maybe into next year?

443
00:21:47,880 --> 00:21:50,040
Speaker 2: Okay, we'll keep an eye out for the unfolding events.

444
00:21:50,080 --> 00:22:00,280
Speaker 3: Seth Nigaman, We appreciate it. Welcome back to BlueBag Technology

445
00:22:00,359 --> 00:22:02,520
Speaker 3: and Karen Hydeer New York. A quick check on these markets,

446
00:22:02,560 --> 00:22:05,520
Speaker 3: because boy May was Estella month for the NASTAG.

447
00:22:05,720 --> 00:22:08,880
Speaker 2: Today we bounce off of our lows, but the anxiety remains.

448
00:22:09,280 --> 00:22:11,360
Speaker 2: What about the pulling back from.

449
00:22:11,320 --> 00:22:13,720
Speaker 3: China and the US in terms of those tentative agreements

450
00:22:13,800 --> 00:22:16,600
Speaker 3: made in Switzerland, The progress seems to be on the line.

451
00:22:16,640 --> 00:22:18,640
Speaker 3: Many are worrying about that at the moment. Dig into

452
00:22:18,680 --> 00:22:20,399
Speaker 3: some of the names. I want to shine light on

453
00:22:20,400 --> 00:22:22,560
Speaker 3: one Chinese EV player. Of course, we've got to keep

454
00:22:22,560 --> 00:22:26,120
Speaker 3: an iron byd It's depository receipts doing better than they

455
00:22:26,119 --> 00:22:28,800
Speaker 3: did trade in Hong Kong at least, but under pressure

456
00:22:28,880 --> 00:22:31,719
Speaker 3: is indeed, the Chinese government tries to hint at byd

457
00:22:31,840 --> 00:22:35,160
Speaker 3: that you're competing too hard in our country, you're racing

458
00:22:35,200 --> 00:22:37,399
Speaker 3: to the border in bottom in terms of price, or

459
00:22:37,440 --> 00:22:38,399
Speaker 3: to boost your numbers.

460
00:22:38,600 --> 00:22:40,240
Speaker 2: Will they pull back a little bit from that?

461
00:22:40,320 --> 00:22:43,119
Speaker 3: But Tesla of by three percent, this is the numbers

462
00:22:43,119 --> 00:22:46,280
Speaker 3: are woeful for sales in May. In France they're done

463
00:22:46,359 --> 00:22:48,919
Speaker 3: sixty seven percent, just seven hundred and twenty.

464
00:22:48,640 --> 00:22:51,000
Speaker 2: One cars in the whole of France.

465
00:22:51,359 --> 00:22:54,479
Speaker 3: All of this comes though, as Elon Musk officially departs

466
00:22:54,480 --> 00:22:56,920
Speaker 3: the White House after running those over there, at least

467
00:22:56,960 --> 00:22:59,440
Speaker 3: as many would say he was running it where Bush Securities,

468
00:22:59,480 --> 00:23:01,919
Speaker 3: managing direct to Dan I is writing this weekend that

469
00:23:02,040 --> 00:23:05,200
Speaker 3: this is quote music to the ears of Tesla shareholders.

470
00:23:05,359 --> 00:23:08,800
Speaker 3: With a crucial few months ahead, Dan Eyes joins us now,

471
00:23:08,840 --> 00:23:12,680
Speaker 3: and boy, those French numbers really show what the crucial

472
00:23:12,720 --> 00:23:13,520
Speaker 3: few months mean.

473
00:23:13,760 --> 00:23:16,240
Speaker 2: Can Elon steer this the other way?

474
00:23:17,320 --> 00:23:17,639
Speaker 10: Okay?

475
00:23:17,640 --> 00:23:21,280
Speaker 8: I mean, obviously the leader's back, right, I mean, Musk

476
00:23:21,400 --> 00:23:24,200
Speaker 8: is Tesla Tesla's Musk. But I believe it's really about

477
00:23:24,240 --> 00:23:27,560
Speaker 8: autonomous and I think as we go into Austin in June,

478
00:23:28,119 --> 00:23:30,320
Speaker 8: you go into the robotics future, that's going to be

479
00:23:30,520 --> 00:23:32,600
Speaker 8: keep part of the value of Tesla's how we get

480
00:23:32,600 --> 00:23:33,240
Speaker 8: to a two.

481
00:23:33,080 --> 00:23:37,040
Speaker 10: Trillion dollar valuation. But and you'll quit Europe.

482
00:23:37,080 --> 00:23:39,600
Speaker 8: You look at us Juku at China and I think

483
00:23:39,680 --> 00:23:41,719
Speaker 8: Musk is going to start to turn that around.

484
00:23:41,760 --> 00:23:44,760
Speaker 10: And I think that's where investors are starting to factor

485
00:23:44,840 --> 00:23:45,119
Speaker 10: in you.

486
00:23:45,160 --> 00:23:47,400
Speaker 8: And I'm gonna say, what's happened next month or two,

487
00:23:47,880 --> 00:23:49,800
Speaker 8: But a rebound second half of the year.

488
00:23:49,800 --> 00:23:53,600
Speaker 3: Okay, so stomach for the near term. These probably remaining

489
00:23:53,720 --> 00:23:57,320
Speaker 3: poor numbers. The new refreshed model. Why isn't cutting it?

490
00:23:57,320 --> 00:24:00,000
Speaker 3: It seems it is more the political backlash. But you say,

491
00:24:00,160 --> 00:24:04,159
Speaker 3: ultimately the technology is going to outweigh a brand issue

492
00:24:04,160 --> 00:24:04,680
Speaker 3: that they've had.

493
00:24:05,320 --> 00:24:07,159
Speaker 8: Yeah, I mean, look me, and you've talked about it before.

494
00:24:07,359 --> 00:24:11,400
Speaker 8: I believe ninety percent of the future value is autonomous

495
00:24:11,440 --> 00:24:15,479
Speaker 8: and robotics. BI look in terms of margins delivery growth,

496
00:24:15,520 --> 00:24:18,720
Speaker 8: that's obviously very important to near turn numbers, but I

497
00:24:18,800 --> 00:24:21,359
Speaker 8: do believe streets factoring, and you start to see a

498
00:24:21,400 --> 00:24:25,480
Speaker 8: rebound second half of the year, you ever recommitted mass.

499
00:24:25,359 --> 00:24:28,880
Speaker 10: Queerly and I think when you look to the future, I.

500
00:24:28,840 --> 00:24:32,000
Speaker 8: Mean this long with Nvidio, I believe the most disruptive

501
00:24:32,080 --> 00:24:35,520
Speaker 8: technology companies in the world. And then who's driving the

502
00:24:35,560 --> 00:24:37,520
Speaker 8: software piece of course it's pound tier.

503
00:24:38,240 --> 00:24:42,080
Speaker 3: But why is Tesla clearly going to be such a

504
00:24:42,200 --> 00:24:45,720
Speaker 3: leadership in autonomous when Weimo is already busy doing it

505
00:24:45,760 --> 00:24:48,520
Speaker 3: And there is a different difference in the technology here

506
00:24:48,560 --> 00:24:50,520
Speaker 3: with Weimo going all in on lidar and a very

507
00:24:50,520 --> 00:24:52,679
Speaker 3: different tactic coming from elon Musk and Tesla.

508
00:24:53,520 --> 00:24:56,200
Speaker 10: Yeah, look, Willim will clearly head start. I think Wimo

509
00:24:56,280 --> 00:24:57,040
Speaker 10: they're going to be at the.

510
00:24:57,000 --> 00:25:00,720
Speaker 8: Kids table relatively Cassela in the com years because of

511
00:25:00,800 --> 00:25:02,560
Speaker 8: the scale and scope.

512
00:25:02,119 --> 00:25:05,640
Speaker 10: Waymos in four cities, two hundred thirty thousand hour cars.

513
00:25:05,680 --> 00:25:07,840
Speaker 8: Like in other words, when I work out over the

514
00:25:07,960 --> 00:25:11,680
Speaker 8: coming years, I think you, look, this is going to

515
00:25:11,760 --> 00:25:14,640
Speaker 8: be dominated by Tesla in terms of cyber cabs.

516
00:25:14,800 --> 00:25:15,880
Speaker 10: It all starts.

517
00:25:15,600 --> 00:25:18,359
Speaker 8: Obviously in the next few weeks in Austin, but no

518
00:25:18,440 --> 00:25:22,040
Speaker 8: one will match the global scale and scope of Musk

519
00:25:22,119 --> 00:25:23,000
Speaker 8: and Tesla.

520
00:25:23,080 --> 00:25:26,000
Speaker 3: So what milestones in Austin, for example, do they need

521
00:25:26,000 --> 00:25:28,440
Speaker 3: to meet? Ed Ludlow with that great reporting out last

522
00:25:28,480 --> 00:25:30,240
Speaker 3: week that June twelfth is going to be the date

523
00:25:30,280 --> 00:25:34,360
Speaker 3: we're anticipating for it to already make actionable what they've

524
00:25:34,359 --> 00:25:37,239
Speaker 3: been trialing on the roads thus far. What do they

525
00:25:37,280 --> 00:25:38,800
Speaker 3: need to meet, how do they need to show off

526
00:25:38,800 --> 00:25:40,520
Speaker 3: in the technology to work?

527
00:25:41,080 --> 00:25:43,800
Speaker 8: Look the interventions, right, I mean, just showing that this

528
00:25:43,880 --> 00:25:47,399
Speaker 8: is something that is ready for prime time, because this

529
00:25:47,560 --> 00:25:51,040
Speaker 8: is just the beginning of ultimately going to be fifteen

530
00:25:51,040 --> 00:25:54,560
Speaker 8: to twenty twenty five cities over the next year. And

531
00:25:54,600 --> 00:25:56,679
Speaker 8: I think this is just really kind of way in

532
00:25:56,720 --> 00:26:00,720
Speaker 8: the ground from technology perspective, showing where a Tesla is

533
00:26:00,760 --> 00:26:02,760
Speaker 8: going to get to them when I believe, look, Weimo

534
00:26:03,440 --> 00:26:05,520
Speaker 8: is going to be successful and that's going to be

535
00:26:05,560 --> 00:26:08,119
Speaker 8: a key sort of player. But in terms of the

536
00:26:08,160 --> 00:26:11,600
Speaker 8: global vision, who's really going to dominate? I believe it's

537
00:26:11,680 --> 00:26:13,680
Speaker 8: Tesla and autonomous.

538
00:26:12,960 --> 00:26:15,080
Speaker 2: And is it a cybercab that dominates?

539
00:26:15,160 --> 00:26:16,880
Speaker 3: Is it the fact that the Tesla's are already out

540
00:26:16,880 --> 00:26:19,120
Speaker 3: on the road and they become the autonomous vehicles they

541
00:26:19,119 --> 00:26:21,680
Speaker 3: are the ones that we don't use ourselves but lend

542
00:26:21,680 --> 00:26:23,040
Speaker 3: out to the ecosystem.

543
00:26:23,400 --> 00:26:25,600
Speaker 10: Well, yeah, I mean it's first of all, it's data driven.

544
00:26:25,680 --> 00:26:27,040
Speaker 10: I mean, by next sure you have ten.

545
00:26:26,920 --> 00:26:29,520
Speaker 8: Million vehicles, you know, in terms of teslas that have

546
00:26:29,560 --> 00:26:33,879
Speaker 8: been sold data driven, and but I do believe cybercabs

547
00:26:34,080 --> 00:26:36,520
Speaker 8: when you think about the autonomous piece, that's going to

548
00:26:36,560 --> 00:26:38,040
Speaker 8: be so important.

549
00:26:38,280 --> 00:26:39,840
Speaker 10: But then also it's about FSD.

550
00:26:40,160 --> 00:26:43,800
Speaker 8: I mean FSD penetration could go from fifteen percent to

551
00:26:43,880 --> 00:26:47,680
Speaker 8: fifty percent. Think about the margin, the software, the uplift

552
00:26:47,680 --> 00:26:49,480
Speaker 8: that that's going to lead to test and that's why

553
00:26:49,480 --> 00:26:53,480
Speaker 8: I believe they are going into their biggest chapter of growth.

554
00:26:53,520 --> 00:26:54,760
Speaker 10: And that's why also it's just.

555
00:26:54,680 --> 00:26:58,200
Speaker 8: So important that must laser focus on Tesla on those

556
00:26:58,280 --> 00:27:01,320
Speaker 8: days in Trump White House hour rearview mirror.

557
00:27:01,240 --> 00:27:03,960
Speaker 3: And you think he will be laser focused on Tesla

558
00:27:04,119 --> 00:27:06,480
Speaker 3: because he's also saying I've got to be laser focused

559
00:27:06,520 --> 00:27:09,600
Speaker 3: on X. He's also remaining very committed and focused on

560
00:27:09,680 --> 00:27:12,399
Speaker 3: SpaceX as well, and not to mention the XAI getting

561
00:27:12,400 --> 00:27:13,639
Speaker 3: woven into X at the moment.

562
00:27:14,440 --> 00:27:18,119
Speaker 8: Look, it's all part of it, obviously, the broader mask ecosystem,

563
00:27:18,200 --> 00:27:21,560
Speaker 8: but the hearts and lungs, the golden goose continues to

564
00:27:21,560 --> 00:27:25,399
Speaker 8: be Tesla, and I think must recognize is now is

565
00:27:25,480 --> 00:27:31,000
Speaker 8: the time, especially given autonomous and robiotics without actually with optimists.

566
00:27:31,760 --> 00:27:34,439
Speaker 3: Tell us the two trillion dollar valuation and how you

567
00:27:34,560 --> 00:27:35,320
Speaker 3: actually got there.

568
00:27:35,320 --> 00:27:36,960
Speaker 2: From a number's perspective.

569
00:27:37,320 --> 00:27:39,640
Speaker 8: Look when I look at when I look at autonomous

570
00:27:39,680 --> 00:27:42,280
Speaker 8: and you start to model out what could maybe twenty

571
00:27:42,320 --> 00:27:47,080
Speaker 8: percent of vehicles being autonomous, you're essentially looking three four

572
00:27:47,119 --> 00:27:49,320
Speaker 8: hours of earnings eventually is going to be thirteen to

573
00:27:49,400 --> 00:27:53,600
Speaker 8: fifteen hours earnings. So the whole math of the Tesla

574
00:27:53,680 --> 00:27:56,040
Speaker 8: valuation is going to drastically change.

575
00:27:56,320 --> 00:27:59,200
Speaker 10: And that's all about, like I believe, from an AI.

576
00:27:59,000 --> 00:28:02,919
Speaker 8: Perspective, one of probably the most undervalued pure players in

577
00:28:02,920 --> 00:28:04,040
Speaker 8: the market is Tesla.

578
00:28:04,520 --> 00:28:06,280
Speaker 10: Now, of course Nvidia, poun Teer.

579
00:28:06,440 --> 00:28:09,440
Speaker 8: You know how the hyperscalers, Microsoft and others continue to

580
00:28:09,520 --> 00:28:10,200
Speaker 8: front and center.

581
00:28:10,280 --> 00:28:12,480
Speaker 10: But you know, Tesla more and more is going to

582
00:28:12,640 --> 00:28:14,960
Speaker 10: prove that when you especially in.

583
00:28:14,920 --> 00:28:18,760
Speaker 8: The physical AI play in terms of our time as robotics,

584
00:28:19,320 --> 00:28:20,480
Speaker 8: they're gonna be front and center.

585
00:28:20,880 --> 00:28:23,880
Speaker 3: At the moment, it's a one trillion dollar market capitalization,

586
00:28:24,240 --> 00:28:27,440
Speaker 3: How quickly does this two trillion become a reality?

587
00:28:28,160 --> 00:28:30,600
Speaker 10: I think next twelve to eighteen months, and I look

588
00:28:30,640 --> 00:28:31,119
Speaker 10: and I think.

589
00:28:31,000 --> 00:28:32,920
Speaker 2: That's going to double in that amount of time.

590
00:28:33,680 --> 00:28:36,200
Speaker 8: That's our view, and I think it could be conservative

591
00:28:36,400 --> 00:28:39,680
Speaker 8: relative to as is all plays out, because I think

592
00:28:40,040 --> 00:28:45,120
Speaker 8: again again, Musk and Tesla underestimated. Next week you're buying

593
00:28:45,240 --> 00:28:47,560
Speaker 8: you know called you know, wait next week and when

594
00:28:47,640 --> 00:28:50,680
Speaker 8: this actually the vision starts, it's going.

595
00:28:50,600 --> 00:28:53,360
Speaker 10: To kick off. I think it's the golden age at Tesla.

596
00:28:54,000 --> 00:28:57,040
Speaker 3: You are the highest price target five hundred, few bone

597
00:28:57,080 --> 00:28:59,840
Speaker 3: securities below you four seventy, but the price targets go

598
00:28:59,840 --> 00:29:02,120
Speaker 3: all all the way down to just I mean JP

599
00:29:02,200 --> 00:29:06,120
Speaker 3: Morgan on one hundred and fifteen. So from what is

600
00:29:06,160 --> 00:29:09,200
Speaker 3: it that others aren't getting here? Is it just the

601
00:29:09,240 --> 00:29:12,400
Speaker 3: scale of the ambition, is it the execution? What is

602
00:29:12,440 --> 00:29:15,080
Speaker 3: it when you're sitting around the table with other analysts

603
00:29:15,120 --> 00:29:17,120
Speaker 3: and they're like no, Dan, and you're like no.

604
00:29:17,160 --> 00:29:19,880
Speaker 10: Yes, well yeah, I mean to that point.

605
00:29:20,120 --> 00:29:22,920
Speaker 8: I mean if you go back over the last five, seven,

606
00:29:23,040 --> 00:29:26,480
Speaker 8: eight years and the Neva underestimated tassa musk every time, right,

607
00:29:27,000 --> 00:29:29,400
Speaker 8: So I mean many thought that the chance of them

608
00:29:29,440 --> 00:29:32,400
Speaker 8: actually coming out with an EV was unrealistic, the chance

609
00:29:32,440 --> 00:29:35,400
Speaker 8: of them scaling to over a million vehicles, so we're

610
00:29:35,440 --> 00:29:38,160
Speaker 8: just again again. I think they continue to view this

611
00:29:38,680 --> 00:29:42,760
Speaker 8: as an automobile company. It's a disruptive technology player, one

612
00:29:42,800 --> 00:29:45,320
Speaker 8: of the best in the world along with Nvidian.

613
00:29:45,400 --> 00:29:46,280
Speaker 10: Of course, Pound.

614
00:29:46,120 --> 00:29:52,280
Speaker 3: Tier Therefore we're looking forward to the global story here.

615
00:29:52,240 --> 00:29:54,160
Speaker 2: Does this have to be executed in the US?

616
00:29:54,240 --> 00:29:56,040
Speaker 3: What about over in China at the moment where we're

617
00:29:56,080 --> 00:29:59,040
Speaker 3: just seeing the level of price competition and indeed the

618
00:29:59,080 --> 00:30:03,160
Speaker 3: commitment that we're starting see from BYD also into autonomous.

619
00:30:03,280 --> 00:30:04,720
Speaker 10: Look, China is a key market.

620
00:30:04,720 --> 00:30:07,080
Speaker 8: I mean, you're over forty percent of deliveries that come

621
00:30:07,120 --> 00:30:09,560
Speaker 8: out of trying to keep up from a supply perspective.

622
00:30:10,080 --> 00:30:11,920
Speaker 10: But it's also why too, It's it's.

623
00:30:11,800 --> 00:30:14,360
Speaker 8: Important more and more must that he distanced himself in

624
00:30:14,440 --> 00:30:17,760
Speaker 8: terms of from Trump White House. Now start to play

625
00:30:17,760 --> 00:30:20,360
Speaker 8: that ten percent politician ninety percent CEO.

626
00:30:20,560 --> 00:30:22,920
Speaker 10: You know what we see from Apple China is.

627
00:30:23,000 --> 00:30:26,360
Speaker 8: Key and I think we're going to continue to see

628
00:30:26,400 --> 00:30:29,680
Speaker 8: now rebound China and Autonomous Test is going to be

629
00:30:29,680 --> 00:30:32,400
Speaker 8: a major player in that market along with BYD and others.

630
00:30:32,600 --> 00:30:35,960
Speaker 3: And then let's talk robotics, because I'm hearing more and

631
00:30:36,040 --> 00:30:38,200
Speaker 3: more about how robotics is going to be the next

632
00:30:38,240 --> 00:30:41,480
Speaker 3: area of key growth. How quickly does the optimist become

633
00:30:41,720 --> 00:30:42,960
Speaker 3: the two trellion dollar driver.

634
00:30:43,920 --> 00:30:46,360
Speaker 8: And remember we're not even really factoring that in so

635
00:30:46,480 --> 00:30:48,719
Speaker 8: it speaks to our view like when you look at

636
00:30:48,760 --> 00:30:52,720
Speaker 8: optimists and as that plays out, robotics potential could even be.

637
00:30:52,680 --> 00:30:54,400
Speaker 10: Bigger than autonomous And.

638
00:30:54,320 --> 00:30:57,040
Speaker 8: I think when it comes to physical AI, it's Tesla

639
00:30:57,080 --> 00:30:59,280
Speaker 8: and a Video that are leading that. And I think

640
00:30:59,360 --> 00:31:01,840
Speaker 8: is that all this is going to get in the

641
00:31:01,880 --> 00:31:04,880
Speaker 8: next twelve, eighteen, twenty four months.

642
00:31:05,360 --> 00:31:06,720
Speaker 10: It's the reality, right.

643
00:31:06,880 --> 00:31:09,360
Speaker 8: The scale and scope is something that tests has a

644
00:31:09,440 --> 00:31:12,560
Speaker 8: huge advantage of. And that's why I think optimist is

645
00:31:12,560 --> 00:31:16,840
Speaker 8: something that again I think investors Wall Street massively underestimating,

646
00:31:17,440 --> 00:31:18,880
Speaker 8: but they will be proven wrong.

647
00:31:19,200 --> 00:31:21,960
Speaker 10: I think as this all plays out, how much.

648
00:31:21,920 --> 00:31:24,920
Speaker 3: Is supply chain going to be a bottleneck kit because

649
00:31:24,920 --> 00:31:26,840
Speaker 3: we keep talking time and time again about the rare

650
00:31:26,880 --> 00:31:29,280
Speaker 3: earth control that China has. I mean, the fact that

651
00:31:29,280 --> 00:31:32,560
Speaker 3: Tesla is so present in China from a supply side perspective,

652
00:31:32,600 --> 00:31:33,880
Speaker 3: is that a winning formula?

653
00:31:34,040 --> 00:31:34,200
Speaker 10: Oh?

654
00:31:34,200 --> 00:31:36,040
Speaker 8: With that, I mean used now that I think that's

655
00:31:36,080 --> 00:31:39,240
Speaker 8: the key, right, Like having such a big presence, and

656
00:31:39,360 --> 00:31:42,719
Speaker 8: of course Musk has very good relationship in Beijing, you know,

657
00:31:43,120 --> 00:31:46,280
Speaker 8: in terms of their footprint, that is very important.

658
00:31:46,360 --> 00:31:48,120
Speaker 10: It gives them a huge advantage.

659
00:31:48,280 --> 00:31:50,720
Speaker 8: And also I think it speaks to the timing, especially

660
00:31:50,760 --> 00:31:54,600
Speaker 8: in this US China negotiations to further and further must

661
00:31:54,680 --> 00:31:57,280
Speaker 8: distance themselves from Trump in the White House. I think

662
00:31:57,360 --> 00:32:00,400
Speaker 8: is important, especially when it plays to what's happened China.

663
00:32:01,080 --> 00:32:03,480
Speaker 3: I'm going to end on Apple because you were just

664
00:32:03,520 --> 00:32:06,680
Speaker 3: talking about other companies that have been owning the space

665
00:32:06,720 --> 00:32:09,320
Speaker 3: Palanteer of course being one that you keep mentioning within software.

666
00:32:09,360 --> 00:32:10,840
Speaker 2: But what about the future of.

667
00:32:10,760 --> 00:32:13,360
Speaker 3: Apple right now from a supply chain perspective, from a

668
00:32:13,360 --> 00:32:16,800
Speaker 3: geopolitical perspective, because it seems as though, well Tim Cook

669
00:32:16,840 --> 00:32:19,200
Speaker 3: needs to be a little bit more politician right now too.

670
00:32:20,040 --> 00:32:22,440
Speaker 8: Yeah, I think there's no better CEO in the world

671
00:32:22,520 --> 00:32:23,560
Speaker 8: that can navigate it.

672
00:32:23,920 --> 00:32:26,200
Speaker 2: He's not gone very well so far, I see.

673
00:32:26,200 --> 00:32:29,680
Speaker 8: I would disagree to the point that he's been able

674
00:32:29,720 --> 00:32:32,760
Speaker 8: to navigate to India, which is an actually huge.

675
00:32:32,520 --> 00:32:34,160
Speaker 10: Part of the pokem. We puts him in a lot

676
00:32:34,160 --> 00:32:36,000
Speaker 10: there and negotiating position.

677
00:32:36,360 --> 00:32:38,960
Speaker 8: And also like, look, the chances of iPhones coming to

678
00:32:39,000 --> 00:32:41,560
Speaker 8: the US, we continue to us unrealistic. In last you

679
00:32:41,600 --> 00:32:44,840
Speaker 8: want have thirty five hundred our iPhone and Cook's another one,

680
00:32:44,880 --> 00:32:46,520
Speaker 8: Like there's an understanding.

681
00:32:46,560 --> 00:32:48,520
Speaker 10: Okay, they might have been laid to the game, but.

682
00:32:48,480 --> 00:32:51,560
Speaker 8: The consumer AI revolution comes to Cooper Tino.

683
00:32:52,000 --> 00:32:54,320
Speaker 10: You'll start to see that next Week WWDC.

684
00:32:54,440 --> 00:32:57,160
Speaker 8: I view that as a very important event that starts

685
00:32:57,160 --> 00:32:58,000
Speaker 8: this next chapter.

686
00:32:58,680 --> 00:33:01,520
Speaker 3: Dan, I've of webush some of the biggest price targets

687
00:33:01,560 --> 00:33:02,760
Speaker 3: out there, for Tesla and for Apple.

688
00:33:02,760 --> 00:33:04,680
Speaker 2: It's always great to have you on the show. Thank

689
00:33:04,720 --> 00:33:05,320
Speaker 2: you very much.

690
00:33:05,560 --> 00:33:09,120
Speaker 3: Coming up, tech has become a major economic driver for

691
00:33:09,240 --> 00:33:11,800
Speaker 3: New York's economy, and a new campaign is.

692
00:33:11,800 --> 00:33:12,720
Speaker 2: Celebrating just that.

693
00:33:12,960 --> 00:33:15,280
Speaker 3: We'll have more on the industry's impact and what's expected

694
00:33:15,320 --> 00:33:18,160
Speaker 3: from New York Tech Week as a bluembag Technology.

695
00:33:28,200 --> 00:33:29,240
Speaker 2: Time Now for Talking Tech.

696
00:33:29,280 --> 00:33:31,800
Speaker 3: First up Byron Allen, while he's hired Molist to find

697
00:33:31,840 --> 00:33:35,160
Speaker 3: buyers for twenty eight local TV stations his company owns

698
00:33:35,320 --> 00:33:37,760
Speaker 3: now this comes as an effort to reduce debt is

699
00:33:37,800 --> 00:33:40,680
Speaker 3: coming on while taking advantage of potential deregulation in the

700
00:33:40,720 --> 00:33:44,520
Speaker 3: broadcast business. In a statement, Alan said, we have received

701
00:33:44,560 --> 00:33:47,320
Speaker 3: numerous inquiries. We are going to use this opportunity to

702
00:33:47,360 --> 00:33:50,600
Speaker 3: take a serious look at the office. Plus, Meta is

703
00:33:50,600 --> 00:33:53,360
Speaker 3: bending on automation for the future of ads. The social

704
00:33:53,360 --> 00:33:56,040
Speaker 3: media company aims to enable brands to fully create in

705
00:33:56,120 --> 00:33:58,840
Speaker 3: target ads using AI by the end of next year.

706
00:33:58,920 --> 00:34:01,080
Speaker 3: Now that's calling to the Wall Street Journal, citing sources

707
00:34:01,280 --> 00:34:04,040
Speaker 3: meant as ad platform already offers some AI tools that

708
00:34:04,120 --> 00:34:08,600
Speaker 3: can generate variations of existing apps and a bridge AI.

709
00:34:08,920 --> 00:34:12,279
Speaker 3: A startup that uses artificial intelligence to transcribe medical conversations,

710
00:34:12,400 --> 00:34:14,200
Speaker 3: is raising three hundred million dollars in a new funding

711
00:34:14,239 --> 00:34:16,560
Speaker 3: round led by Andrews and Horowitz so All, according to

712
00:34:16,600 --> 00:34:18,919
Speaker 3: sources who say that the round values of Pittsburgh based

713
00:34:19,000 --> 00:34:22,920
Speaker 3: company are five point three billion including the investments. But

714
00:34:23,000 --> 00:34:25,399
Speaker 3: now let's bring it to New York. New York Tech

715
00:34:25,440 --> 00:34:27,759
Speaker 3: Week kicks off to day the city. It's meant the

716
00:34:27,800 --> 00:34:30,279
Speaker 3: fashion and finance and it's seen a tech boom though

717
00:34:30,320 --> 00:34:32,920
Speaker 3: over the past decade, the sector actually made forty one

718
00:34:32,960 --> 00:34:35,640
Speaker 3: percent of the city's net job growth since twenty nineteen.

719
00:34:35,960 --> 00:34:39,400
Speaker 3: Judy Samuels is presidentcy of Tech NYC is a nonprofit.

720
00:34:39,600 --> 00:34:41,520
Speaker 3: You promote the sector in the city, and you have

721
00:34:41,600 --> 00:34:44,040
Speaker 3: got a rather coore new campaign we do.

722
00:34:44,160 --> 00:34:45,439
Speaker 6: We're so excited about it.

723
00:34:45,719 --> 00:34:48,200
Speaker 12: We're launching today with support from New York City and

724
00:34:48,200 --> 00:34:51,160
Speaker 12: in partnership with Red Antler, a campaign called Obviously New

725
00:34:51,239 --> 00:34:53,640
Speaker 12: York And it's really just a moment to celebrate the

726
00:34:53,760 --> 00:34:57,640
Speaker 12: amazing growth of the tech industry here to really highlight

727
00:34:57,640 --> 00:34:59,520
Speaker 12: all the things that we think are just so going

728
00:34:59,560 --> 00:35:00,640
Speaker 12: so well in New York.

729
00:35:00,719 --> 00:35:04,120
Speaker 3: Right now, give us the obvious statistics, give us the

730
00:35:04,200 --> 00:35:07,399
Speaker 3: obvious statements of thought that make New York number two

731
00:35:07,520 --> 00:35:08,399
Speaker 3: tech sector in the world.

732
00:35:08,600 --> 00:35:10,200
Speaker 12: I mean, listen, I have so many, but just some

733
00:35:10,320 --> 00:35:12,839
Speaker 12: that i'd highlight. I think that really underscore what makes

734
00:35:12,840 --> 00:35:15,120
Speaker 12: New York so amazing. New York is the number one

735
00:35:15,440 --> 00:35:17,840
Speaker 12: destination for college graduates.

736
00:35:18,560 --> 00:35:19,520
Speaker 6: The tech sector here.

737
00:35:19,400 --> 00:35:21,640
Speaker 12: In New York you talked about the forty one percent

738
00:35:21,680 --> 00:35:25,719
Speaker 12: figure is responsible for creates ten times the amount of

739
00:35:25,800 --> 00:35:29,120
Speaker 12: new jobs in our local economy than ten times.

740
00:35:28,880 --> 00:35:29,880
Speaker 6: More than other industries.

741
00:35:29,920 --> 00:35:32,759
Speaker 12: I find out that's right since the pandemic, since in

742
00:35:32,800 --> 00:35:35,120
Speaker 12: the past five years. But that speaks to the growth,

743
00:35:35,120 --> 00:35:37,600
Speaker 12: that speaks to the j curve that we're on here that.

744
00:35:37,600 --> 00:35:38,719
Speaker 6: I think is so important.

745
00:35:38,960 --> 00:35:41,800
Speaker 12: You know, it's a seven hundred billion dollar industry, twenty

746
00:35:41,800 --> 00:35:43,040
Speaker 12: five thousand startups.

747
00:35:43,120 --> 00:35:44,719
Speaker 6: It's just booming here.

748
00:35:44,760 --> 00:35:49,040
Speaker 12: And it's because, of course, you know, the New York

749
00:35:49,120 --> 00:35:53,080
Speaker 12: City is home to every industry, and increasingly technology is

750
00:35:53,200 --> 00:35:56,360
Speaker 12: just powering every other industry. And the thing that we

751
00:35:56,440 --> 00:35:59,080
Speaker 12: think is happening here that is unique to New York

752
00:35:59,640 --> 00:36:02,200
Speaker 12: is that as the technology, especially in this moment where

753
00:36:02,280 --> 00:36:04,879
Speaker 12: AI is just booming. You know, all the your entire

754
00:36:04,920 --> 00:36:09,000
Speaker 12: intros about all these companies just growing AI building AI.

755
00:36:09,239 --> 00:36:13,120
Speaker 12: As the new technology evolves, what happens uniquely here in

756
00:36:13,120 --> 00:36:16,120
Speaker 12: New York is companies figure out how to use it,

757
00:36:16,400 --> 00:36:18,440
Speaker 12: who's going to pay for it, what it's going to

758
00:36:18,560 --> 00:36:20,360
Speaker 12: actually do in practice.

759
00:36:20,440 --> 00:36:21,840
Speaker 6: And that is the New York story.

760
00:36:22,239 --> 00:36:24,400
Speaker 3: So give us some pin ups when you think all

761
00:36:24,520 --> 00:36:27,040
Speaker 3: the icons of the New York's stought up scene. I

762
00:36:27,040 --> 00:36:30,240
Speaker 3: think cognition AI in many ways from the underlying really

763
00:36:30,360 --> 00:36:32,759
Speaker 3: leaps some vounds driving forward the technology when it comes

764
00:36:32,800 --> 00:36:33,280
Speaker 3: to coding.

765
00:36:33,520 --> 00:36:35,600
Speaker 2: But where else do we seeing success stories in the.

766
00:36:35,560 --> 00:36:36,719
Speaker 6: AI space in particular?

767
00:36:36,760 --> 00:36:39,440
Speaker 12: Of course, we've got Runway, which is just an amazing

768
00:36:39,440 --> 00:36:41,759
Speaker 12: New York story because it marries the creativity that is

769
00:36:41,800 --> 00:36:44,040
Speaker 12: inherent to so much that happens in New York City

770
00:36:44,080 --> 00:36:45,320
Speaker 12: and the AI side.

771
00:36:45,440 --> 00:36:47,000
Speaker 6: And it's beyond AI.

772
00:36:47,080 --> 00:36:49,240
Speaker 12: Of course, you've got Ramp, which is probably the fastest

773
00:36:49,239 --> 00:36:51,600
Speaker 12: growing startup in New York. That's in the fintech space.

774
00:36:51,760 --> 00:36:54,319
Speaker 12: We have a ton happening in digital health companies like

775
00:36:54,520 --> 00:36:56,520
Speaker 12: Maven and Row. I mean, the list goes on and on.

776
00:36:56,560 --> 00:36:58,880
Speaker 12: But again I would underscore that all of those companies

777
00:36:58,920 --> 00:37:02,560
Speaker 12: are for the most part, building in uniquely New York industries.

778
00:37:02,600 --> 00:37:03,919
Speaker 3: I love that you keep trying to do this tongue

779
00:37:03,920 --> 00:37:05,640
Speaker 3: twister again and again, and you're like nailing it.

780
00:37:05,719 --> 00:37:07,880
Speaker 6: I have a little bit of practice. I have a

781
00:37:07,920 --> 00:37:08,840
Speaker 6: little bit of practice.

782
00:37:09,080 --> 00:37:12,400
Speaker 3: But what about why the campaign around it, why this

783
00:37:12,480 --> 00:37:14,239
Speaker 3: moment a need to celebrate?

784
00:37:14,760 --> 00:37:16,879
Speaker 12: I think that Listen, there's a couple of things happening here,

785
00:37:17,440 --> 00:37:19,399
Speaker 12: and well, first of all, I just think people love

786
00:37:19,440 --> 00:37:21,640
Speaker 12: to have fun, people love.

787
00:37:21,480 --> 00:37:23,400
Speaker 6: To celebrate, and right now, New York.

788
00:37:23,280 --> 00:37:25,319
Speaker 12: Is just ascendant when it comes to tech, and we

789
00:37:25,360 --> 00:37:27,319
Speaker 12: wanted to kind of put a stamp on that. We

790
00:37:27,360 --> 00:37:29,839
Speaker 12: wanted to call it out. We wanted people here to

791
00:37:29,840 --> 00:37:31,719
Speaker 12: feel excited. And then we want to go on the

792
00:37:31,800 --> 00:37:35,160
Speaker 12: road and remind people just how great the New York

793
00:37:35,200 --> 00:37:36,160
Speaker 12: tech ecosystem is.

794
00:37:36,160 --> 00:37:36,960
Speaker 6: Because here's the thing.

795
00:37:38,000 --> 00:37:40,759
Speaker 12: When you meet young people, people of all ages, but

796
00:37:40,880 --> 00:37:43,960
Speaker 12: especially young people, they always want to live in New York,

797
00:37:44,000 --> 00:37:45,839
Speaker 12: and we need to remind them that you can come

798
00:37:45,840 --> 00:37:49,120
Speaker 12: here and build a really dynamic tech career doing that.

799
00:37:49,520 --> 00:37:53,600
Speaker 3: But when I think of the resurgence in San Francisco,

800
00:37:53,960 --> 00:37:57,200
Speaker 3: basically generative aice rebral valley, we've covered it time and

801
00:37:57,200 --> 00:38:01,040
Speaker 3: time again. Do we need to be either or is

802
00:38:01,040 --> 00:38:05,800
Speaker 3: it mutually beneficially seeing companies building talent systems in both places?

803
00:38:06,239 --> 00:38:07,920
Speaker 12: I think, listen, I think you want to see tech

804
00:38:08,000 --> 00:38:10,719
Speaker 12: building and growing the economy all over the country. I

805
00:38:10,760 --> 00:38:13,279
Speaker 12: think that's incredibly important. I like the way we do

806
00:38:13,320 --> 00:38:15,040
Speaker 12: it here in New York. That speaks to me, That's

807
00:38:15,040 --> 00:38:18,120
Speaker 12: why I'm here doing this job here. But I think

808
00:38:18,120 --> 00:38:21,279
Speaker 12: to your point, we want this to happen on both coasts.

809
00:38:21,320 --> 00:38:22,680
Speaker 12: We want this to happen in the middle of the

810
00:38:22,680 --> 00:38:25,319
Speaker 12: country as well. I think that's really important. And you know,

811
00:38:25,360 --> 00:38:27,960
Speaker 12: we talked about a lot of homegrown New York tech companies,

812
00:38:28,000 --> 00:38:31,359
Speaker 12: but open ai is also growing like crazy here and

813
00:38:31,360 --> 00:38:34,359
Speaker 12: in really iconic New York building downtown. They're taking more

814
00:38:34,400 --> 00:38:36,200
Speaker 12: and more space. So it's going to take all of

815
00:38:36,239 --> 00:38:37,399
Speaker 12: these pieces, all of this.

816
00:38:37,480 --> 00:38:41,080
Speaker 3: Input you want, like the quintessential public private partnership, because

817
00:38:41,080 --> 00:38:42,920
Speaker 3: you as a normal profit in the middle of bringing

818
00:38:43,520 --> 00:38:46,400
Speaker 3: leaders within some of the iconic New York tech sector

819
00:38:46,600 --> 00:38:49,320
Speaker 3: into help give advice to the public sector.

820
00:38:49,360 --> 00:38:51,240
Speaker 2: And it goes both ways.

821
00:38:51,520 --> 00:38:53,400
Speaker 3: What is it that the public sector is doing that

822
00:38:53,480 --> 00:38:54,799
Speaker 3: helps trikes a really good question.

823
00:38:54,880 --> 00:38:57,040
Speaker 12: So in this instance, The city is putting a significant

824
00:38:57,040 --> 00:38:58,920
Speaker 12: amount of money. It's I think four million dollars in

825
00:38:59,000 --> 00:39:02,799
Speaker 12: total behind help to bolster the AI ecosystem. Part of

826
00:39:02,800 --> 00:39:05,560
Speaker 12: that is helping support our campaign, but that's just a

827
00:39:05,560 --> 00:39:06,080
Speaker 12: small part.

828
00:39:06,080 --> 00:39:07,000
Speaker 6: They're doing a lot more.

829
00:39:07,040 --> 00:39:09,279
Speaker 12: They have an AI Nexus program that the city is

830
00:39:09,320 --> 00:39:11,399
Speaker 12: putting its money where its mouth is, and we think

831
00:39:11,400 --> 00:39:14,200
Speaker 12: that's really important. The state is also doing it's fair share.

832
00:39:14,239 --> 00:39:16,879
Speaker 12: We've got a great program here called Empire AI where

833
00:39:16,880 --> 00:39:22,120
Speaker 12: we're really empowering academic institutions, giving them access to just

834
00:39:22,200 --> 00:39:25,240
Speaker 12: the amazing quantity of compute that's incredibly hard for anyone

835
00:39:25,280 --> 00:39:27,919
Speaker 12: outside of the private sector to get. So the state

836
00:39:28,080 --> 00:39:30,919
Speaker 12: the city, especially in this instance, are really doubling down

837
00:39:30,960 --> 00:39:33,440
Speaker 12: to ensure that New York is a place where people

838
00:39:33,520 --> 00:39:36,080
Speaker 12: want to come to build and grow tech companies, but

839
00:39:36,160 --> 00:39:37,240
Speaker 12: also where.

840
00:39:37,120 --> 00:39:38,040
Speaker 6: People want to live.

841
00:39:38,640 --> 00:39:41,080
Speaker 3: I'm excited to see the statistics coming out for twenty

842
00:39:41,120 --> 00:39:44,400
Speaker 3: twenty five AI job posting surging twenty five thousand in

843
00:39:44,440 --> 00:39:47,600
Speaker 3: twenty twenty four New York. J. D. Samuels THEDEO President

844
00:39:47,640 --> 00:39:51,239
Speaker 3: of Tech NYC. Go enjoy tech Week. Meanwhile, let's talk

845
00:39:51,280 --> 00:39:54,000
Speaker 3: about China because Tom Cruise is Film is back On

846
00:39:54,120 --> 00:39:56,880
Speaker 3: top of that Mission Impossible, The Final Reckoning posted the

847
00:39:56,920 --> 00:39:59,640
Speaker 3: biggest opening for a US film in the country this

848
00:39:59,719 --> 00:40:02,560
Speaker 3: year and twenty five point two million dollars during its

849
00:40:02,600 --> 00:40:07,120
Speaker 3: opening weekend, defining trade geopolitical tensions between Washington and Beijing.

850
00:40:14,480 --> 00:40:15,600
Speaker 2: IPO activity.

851
00:40:15,800 --> 00:40:18,160
Speaker 3: In the tech space, it is heating up digital bunking

852
00:40:18,200 --> 00:40:22,560
Speaker 3: startup Chime crypto firms Circle both targeting strong offerings. Anthony

853
00:40:22,640 --> 00:40:24,520
Speaker 3: Hughes is there to break it all down, and the

854
00:40:24,560 --> 00:40:26,720
Speaker 3: way in which we see that there's strength is Circle

855
00:40:26,880 --> 00:40:29,160
Speaker 3: being able to sell more shares at a higher price point.

856
00:40:29,200 --> 00:40:31,879
Speaker 13: It seems yes, Circle seems to be going very well.

857
00:40:32,280 --> 00:40:35,040
Speaker 13: The IPO is pricing in the middle of this week,

858
00:40:35,080 --> 00:40:38,240
Speaker 13: so it actually launched last week. Since that happened, Bitcoin

859
00:40:38,280 --> 00:40:39,759
Speaker 13: did come off a bit, but there is certainly a

860
00:40:39,800 --> 00:40:43,759
Speaker 13: lot more enthusiasm towards cryptocurrency, of course, particularly in the

861
00:40:43,840 --> 00:40:46,040
Speaker 13: last month or so. We also saw coinbase come into

862
00:40:46,080 --> 00:40:49,879
Speaker 13: the the S and P five hundred last month, so

863
00:40:50,160 --> 00:40:53,200
Speaker 13: that has contributed to a lot of enthusiasm for that

864
00:40:54,480 --> 00:40:58,000
Speaker 13: company in particular, which is which is behind stable coins,

865
00:40:58,040 --> 00:41:02,480
Speaker 13: and it's a business that some people wondering where it

866
00:41:02,480 --> 00:41:04,120
Speaker 13: fits into the scheme of things, whether it's more of

867
00:41:04,160 --> 00:41:06,880
Speaker 13: like a payments company, and maybe it might deserve a

868
00:41:06,880 --> 00:41:09,120
Speaker 13: bit of a discount to a company like Coinbase, which

869
00:41:09,160 --> 00:41:12,160
Speaker 13: has become sort of the premiere sort of stock in

870
00:41:12,160 --> 00:41:16,040
Speaker 13: the crypto space, one of the premier stocks anyway.

871
00:41:16,200 --> 00:41:19,440
Speaker 3: Well, what's interesting is that Chime being very much sort

872
00:41:19,480 --> 00:41:22,600
Speaker 3: of a retail focused offering in the fintech space, is

873
00:41:22,640 --> 00:41:24,880
Speaker 3: it going to tap into retail demand. Is the institutional

874
00:41:24,920 --> 00:41:27,239
Speaker 3: demand that makes that also a success story when it

875
00:41:27,280 --> 00:41:28,360
Speaker 3: finally comes to the market.

876
00:41:28,840 --> 00:41:31,360
Speaker 13: Well, I think Chime has a really interesting retail story

877
00:41:31,400 --> 00:41:34,040
Speaker 13: because it's obviously appealed very much. It's got eight million customers,

878
00:41:34,080 --> 00:41:36,359
Speaker 13: and it sells a debit card and a credit card,

879
00:41:36,360 --> 00:41:38,800
Speaker 13: and it's been very popular with a certain sort of demographic,

880
00:41:38,800 --> 00:41:40,719
Speaker 13: a younger demographic. It actually reminds me a little bit

881
00:41:40,760 --> 00:41:43,480
Speaker 13: of the Robin Hood ipo from years ago, from a

882
00:41:43,480 --> 00:41:45,640
Speaker 13: few years back, where you know, there's this idea that

883
00:41:45,800 --> 00:41:50,160
Speaker 13: perhaps you have attracted a lot of customers, and maybe

884
00:41:50,640 --> 00:41:52,360
Speaker 13: it might not necessarily be easy to attract millions and

885
00:41:52,360 --> 00:41:54,600
Speaker 13: millions more really quickly like you have in the past.

886
00:41:54,960 --> 00:41:57,080
Speaker 13: But you know, when you have these younger customers, you

887
00:41:57,080 --> 00:41:59,320
Speaker 13: can grow with them and add on products and stuff

888
00:41:59,320 --> 00:42:01,480
Speaker 13: like that, so that'll be one of the real sort

889
00:42:01,520 --> 00:42:05,719
Speaker 13: of selling points I guess with the chaime IPO. But

890
00:42:06,000 --> 00:42:09,239
Speaker 13: the company does come at a significant down round or

891
00:42:09,440 --> 00:42:13,480
Speaker 13: lower evaluation than it was able to attract in twenty

892
00:42:13,520 --> 00:42:16,799
Speaker 13: twenty one, when we had very high valuations for all

893
00:42:16,840 --> 00:42:21,480
Speaker 13: sorts of tech companies, including fintech and this company, but

894
00:42:21,520 --> 00:42:23,680
Speaker 13: also software companies and the like. So we are in

895
00:42:23,680 --> 00:42:25,520
Speaker 13: a very different environment from twenty twenty one and we

896
00:42:25,560 --> 00:42:26,640
Speaker 13: have to take that into account.

897
00:42:26,840 --> 00:42:28,040
Speaker 2: Hinge Health had that as well.

898
00:42:28,080 --> 00:42:30,359
Speaker 3: Of course, I need to disclose that my husband does

899
00:42:30,400 --> 00:42:33,279
Speaker 3: indeed work over at coinbase as well. Anthony Hughes, thank

900
00:42:33,320 --> 00:42:34,880
Speaker 3: you very much indeed for joining us. Now that does

901
00:42:34,920 --> 00:42:37,400
Speaker 3: it for this edition of Bloombag Technology. Do not forget

902
00:42:37,440 --> 00:42:39,560
Speaker 3: to check out our podcast. Find it on the terminal

903
00:42:39,640 --> 00:42:42,400
Speaker 3: as well as online on Apple, Spotify, and iHeart This

904
00:42:42,480 --> 00:42:43,520
Speaker 3: is a blombag Technology