WEBVTT - TSMC Lifts Chips, Amazon's Green Goals 0:00:01.440 --> 0:00:04.600 From the heart where Innovation of Money and power. 0:00:04.320 --> 0:00:06.720 Collie in Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.559 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:25.480 --> 0:00:27.720 Live from New York and San Francisco. This is Bloomberg 0:00:27.760 --> 0:00:32.080 Technology coming up. TSMC SAWS as the chipmaker hikes its 0:00:32.200 --> 0:00:35.400 revenue outlook, AI hardware exuberance is it back? 0:00:36.240 --> 0:00:40.480 Plus Meta's new effort to stop set stortion across Instagram, 0:00:40.520 --> 0:00:42.760 a first look at the campaign Mate to keep Team 0:00:42.920 --> 0:00:44.560 safe across its platforms. 0:00:44.640 --> 0:00:48.280 And Amazon embraces nuclear power to insurance AI energy needs 0:00:48.280 --> 0:00:51.760 and met awsco joins US Live with details on the 0:00:51.760 --> 0:00:54.280 clean energy effort. But first I've got to check out 0:00:54.480 --> 0:00:55.760 the TSMC trade. 0:00:56.000 --> 0:01:01.640 D Yeah, TSMC is off top story Taiwan Semiconducts and Manufacturing. 0:01:01.640 --> 0:01:04.080 These are the ADRs the US listed shares. 0:01:04.400 --> 0:01:05.320 They are up big. 0:01:05.400 --> 0:01:07.720 In fact, the shares are trading at their highest level 0:01:08.000 --> 0:01:11.600 since nineteen ninety seven, when they first started trading in 0:01:11.600 --> 0:01:15.600 the United States. The outlook for revenue growth for twenty 0:01:15.640 --> 0:01:19.759 twenty four is boosted about thirty percent in dollar terms. 0:01:19.800 --> 0:01:21.840 And the big picture, Carro, is that we kind of 0:01:21.840 --> 0:01:25.040 feel better about the outlook for the chip industry in general, 0:01:25.120 --> 0:01:29.360 why TSMC is the contrat manufacturers to the world. They 0:01:29.520 --> 0:01:32.960 make the most important chips that we care about, namingly 0:01:33.120 --> 0:01:36.399 those high performance GPUs in the AI context and. 0:01:36.400 --> 0:01:40.080 Post ASML, we had a lot of anxiety around hardware 0:01:40.240 --> 0:01:43.280 and chip making, but doesn't seem like it's there right 0:01:43.319 --> 0:01:45.880 now because most Peter Elstrong can join us from London 0:01:45.880 --> 0:01:48.200 for more and Peter just give us that context. What 0:01:48.240 --> 0:01:51.840 TSMC manages to prove to the market that really echoing 0:01:51.880 --> 0:01:53.880 in video the demand is insatiable. 0:01:55.440 --> 0:01:58.800 That's right, Kirolin, As you alluded to, all eyes were 0:01:58.880 --> 0:02:02.720 on TSMC for this ASML report. The Dutch equipment company 0:02:02.960 --> 0:02:04.840 came out and it said that bookings in the chip 0:02:04.880 --> 0:02:08.440 industry were only about half of what analysts had been expecting. 0:02:08.639 --> 0:02:11.000 And that really started the industry and Vidia stock was 0:02:11.040 --> 0:02:13.560 down and everybody was wondering who is the weak player 0:02:13.600 --> 0:02:17.000 in the industry, which company is, which chip company is struggling, 0:02:17.040 --> 0:02:19.520 And now we know it's not TSMC. TSMC has done 0:02:19.639 --> 0:02:22.200 very very well here. They boosted their guidance, they beat 0:02:22.200 --> 0:02:26.320 earnings estimates, and they reassured the market really that demand 0:02:26.360 --> 0:02:28.639 for AI in particular is very very strong. 0:02:28.680 --> 0:02:30.079 At this point. CC way. 0:02:30.120 --> 0:02:32.320 The CEO got a lot of questions in the call 0:02:32.400 --> 0:02:35.560 after results about that, and he said that the demand 0:02:35.680 --> 0:02:38.200 is real. He called it insane at one point. He said, 0:02:38.240 --> 0:02:40.280 it's very very strong at this point. So that's there's 0:02:40.280 --> 0:02:42.160 a reassurance play that's going on here too. 0:02:43.200 --> 0:02:47.400 Piter TSMC boosted its capital expenditures outlook for twenty twenty five. 0:02:47.720 --> 0:02:52.840 Why is that important, Well, it's partly important because ASML 0:02:53.160 --> 0:02:55.840 is the company that sells the chip making machines to 0:02:55.880 --> 0:03:00.520 all these companies. TSMC is the most advanced producer of 0:03:00.560 --> 0:03:03.440 these chips, and so there's a question about who's going 0:03:03.520 --> 0:03:06.240 to buy these machines from ASML and then others in 0:03:06.280 --> 0:03:08.560 the industry. We know that a couple of the key 0:03:08.600 --> 0:03:11.679 players are struggling right now. Intel and Samsung are both 0:03:11.720 --> 0:03:14.400 having quite a bit of trouble. TSMC appears to be 0:03:14.480 --> 0:03:17.560 doing very well, partly because of AI to Nvidia. They 0:03:17.600 --> 0:03:20.680 also supply the chips to Apple, which is trying to 0:03:20.720 --> 0:03:23.720 sell its phones in part because of their AI capabilities. 0:03:23.919 --> 0:03:24.680 So we're seeing this. 0:03:24.760 --> 0:03:26.920 Bifurcation in the market right now where you have some 0:03:27.000 --> 0:03:29.600 week players, some struggling quite a bit, and then you 0:03:29.639 --> 0:03:32.760 have some like TSMC, like in Nvidia, like s Kahnix 0:03:32.760 --> 0:03:34.320 in Korea too, that are doing very. 0:03:34.160 --> 0:03:38.880 Well, and TSMC committing to capital expenditure globally. Right they're 0:03:38.880 --> 0:03:41.640 going to be building out manufacturing, not just in Asia 0:03:41.680 --> 0:03:42.600 where you usually sit. 0:03:43.640 --> 0:03:45.040 That's a very important point. 0:03:45.120 --> 0:03:49.200 For many decades, TSMC only produced its chips within Taiwan. 0:03:49.240 --> 0:03:51.280 It felt it was easier to kind of concentrate all 0:03:51.320 --> 0:03:53.120 its production in one place. And over the past few 0:03:53.200 --> 0:03:56.320 years we've seen that business model really evolve where they've 0:03:56.320 --> 0:03:59.240 been asked by the US, by Europe, by Japan too 0:03:59.680 --> 0:04:02.920 to build these chip making plants in their domestic markets, 0:04:02.960 --> 0:04:05.880 probably because of the supply chain sharks that we saw 0:04:06.000 --> 0:04:08.600 during the COVID pandemic. While these countries want to make 0:04:08.640 --> 0:04:11.160 sure that they can get those chips, TSMC is the 0:04:11.160 --> 0:04:13.680 best chip maker out there, so they want TSMC to 0:04:13.760 --> 0:04:16.640 come to the United States, to Japan, to Europe and 0:04:16.680 --> 0:04:19.279 beyond to try to make those chips and make sure 0:04:19.279 --> 0:04:20.600 that they're being produced locally. 0:04:20.800 --> 0:04:23.080 So far, that model seems to be working pretty well. 0:04:23.920 --> 0:04:27.200 Bloomberg's Peter Elstrom, who's the executive editor leading our tech 0:04:27.240 --> 0:04:30.839 coverage from Asia, hours into Europe, now into the US, 0:04:30.839 --> 0:04:32.520 and by the way, one of the names up big 0:04:32.520 --> 0:04:36.159 on the same logic is in Nvidia caro another top 0:04:36.200 --> 0:04:36.920 story you've got. 0:04:37.040 --> 0:04:39.080 Yeah, look at Nvidia at a new record high. Let's 0:04:39.080 --> 0:04:42.839 switch to Apple now, because secretly it had worked with 0:04:43.040 --> 0:04:47.240 Chinese auto make a BYD four years. According to Bloomberg's sources, 0:04:47.240 --> 0:04:49.679 the tech giant partner with BYD to develop long range 0:04:49.680 --> 0:04:52.719 EV batteries as part of what it's now canceled car 0:04:52.760 --> 0:04:56.560 project Nimbos. Gabrielle Coupler is with us and Gabby the 0:04:56.640 --> 0:04:59.280 context here is a wonderful big take that you have 0:04:59.600 --> 0:05:03.280 going into the BYD success story. But just take us 0:05:03.279 --> 0:05:06.320 to the Apple relationship and would it helped BYD. 0:05:06.040 --> 0:05:09.400 Achieve sure, thank you. 0:05:09.400 --> 0:05:11.120 You know, I want to be clear, I think this 0:05:11.279 --> 0:05:13.440 was really a two way street, you know. I think 0:05:13.520 --> 0:05:16.479 BYD and like a lot of battery makers in China 0:05:16.520 --> 0:05:19.720 had been working with the new chemistry called LFP lithium 0:05:19.760 --> 0:05:23.280 iron phosphate and they had made a battery cell that 0:05:23.440 --> 0:05:26.160 was really impressive in terms of its safety metrics, its 0:05:26.240 --> 0:05:28.920 resistance you know to fire risks, but also could hold 0:05:28.960 --> 0:05:31.600 a lot of energy. Meanwhile, Apple was working on the 0:05:31.640 --> 0:05:34.640 Apple car and they were working on a design for 0:05:34.680 --> 0:05:37.239 a pack to have an EV they would have maximum range. 0:05:37.279 --> 0:05:39.200 That was one of their kind of key targets for 0:05:39.240 --> 0:05:42.560 that project. And these two companies came together from about 0:05:42.600 --> 0:05:44.920 twenty seventeen to twenty twenty and kind of put their 0:05:44.960 --> 0:05:47.720 best and brighters together to work on a battery that 0:05:47.839 --> 0:05:51.400 would be best in class for the Apple car. Now, ultimately, 0:05:51.520 --> 0:05:53.760 as we know, Apple pulled the plug on that project 0:05:53.800 --> 0:05:58.520 earlier this year. Meanwhile, BYD, which took that you know 0:05:58.600 --> 0:06:00.560 work that hit it, are you know its own IP. 0:06:00.640 --> 0:06:02.760 I want to be very clear, BYD did comment to 0:06:02.839 --> 0:06:04.880 us that there is no Apple IP in its own 0:06:05.360 --> 0:06:08.440 famous blade battery. But today you look at all the 0:06:08.440 --> 0:06:11.000 cars that BYD is selling, every single one of them 0:06:11.240 --> 0:06:13.279 has this blade battery in there. It was a game 0:06:13.400 --> 0:06:15.800 changer for the company. It's what helped them improve their 0:06:15.839 --> 0:06:18.719 sales really rocket from being kind of a nobody and 0:06:18.760 --> 0:06:21.120 also ran in the China market to being the number 0:06:21.160 --> 0:06:24.159 one in the world's biggest car market. And what my 0:06:24.200 --> 0:06:26.920 colleague and i am Mark German, uncovered is that there 0:06:27.000 --> 0:06:29.200 was some influence from Apple in that journey. I don't 0:06:29.240 --> 0:06:31.960 want to take away anything from BID because they themselves 0:06:32.000 --> 0:06:35.559 are a very innovative company, but we did the world 0:06:35.600 --> 0:06:37.240 did not know. We thought this was all something that 0:06:37.279 --> 0:06:39.520 went on in the labs and BID and Shanjen, and 0:06:39.560 --> 0:06:41.560 that's not the case. There was a lot of collaboration 0:06:42.400 --> 0:06:43.839 between Apple and BID. 0:06:44.520 --> 0:06:49.320 Right, really important piece of reporting about BYD's prowess in 0:06:49.440 --> 0:06:53.480 batteries and history and batteries. And then there's the electric 0:06:53.560 --> 0:06:57.880 vehicle side, specifically in the cheaper categories, and that's the 0:06:57.920 --> 0:07:00.920 whole point of the big take thought. With the basics, 0:07:01.040 --> 0:07:04.960 what is the conclusion you reach about BYD and it 0:07:05.040 --> 0:07:05.920 strides globally. 0:07:08.320 --> 0:07:11.200 I would say that my biggest takeaway from reporting this 0:07:11.280 --> 0:07:14.080 story over the last few months is that if you 0:07:14.120 --> 0:07:17.559 want to understand why BYD is the biggest car maker 0:07:17.560 --> 0:07:20.400 in China, why they can make cars that are have 0:07:20.480 --> 0:07:23.400 such impressive technology and yet such a low cost that 0:07:23.680 --> 0:07:26.960 truly terrifies auto executives all around the world, whether they're 0:07:27.000 --> 0:07:30.520 in Tokyo, Wilsburg, or Detroit, you've got to understand that 0:07:30.560 --> 0:07:33.480 the story is much more complicated than subsidies. Obviously, right 0:07:33.520 --> 0:07:36.760 now we're in the middle of a really intense period 0:07:36.760 --> 0:07:38.960 of trade war and tariffs with the US and China, 0:07:39.040 --> 0:07:41.400 with Europe, and China. And there's a lot of rhetoric 0:07:41.480 --> 0:07:44.760 going around about, you know, how subsidies or what's making 0:07:44.760 --> 0:07:47.040 these companies grow, and I don't want to deny that 0:07:47.080 --> 0:07:49.920 at all. China is not a free market economy. The 0:07:50.280 --> 0:07:52.360 level of subsidy. People always say, yeah, well the US 0:07:52.360 --> 0:07:55.320 has subsidy two or the EU s subsidies two. That's true, 0:07:55.320 --> 0:07:58.840 but the scale of subsidies in China is much greater 0:07:58.960 --> 0:08:03.240 than any other freemark market, democratic country. So having said that, 0:08:03.800 --> 0:08:06.120 if it was just subsidise, you would see twenty buids, 0:08:06.120 --> 0:08:08.920 whereas there's only one. And that is really a testament 0:08:08.960 --> 0:08:13.720 to the innovation, the engineering breakthroughs, the determination, the kind 0:08:13.760 --> 0:08:16.160 of stick it to it. This of the founder, Juan Chuanfu, 0:08:16.400 --> 0:08:19.840 And that's really what I try to tell in this story. 0:08:20.080 --> 0:08:22.760 Bloomberg's Gabrielle Coppola, thank you so much for joining us 0:08:22.760 --> 0:08:26.200 on Bloomberg Technology. Now coming up, Instagram sets launch a 0:08:26.200 --> 0:08:30.680 new campaign meant to keep team safe from sextortion scams. 0:08:31.000 --> 0:08:33.679 We have metas head of Global Safety here on the program. 0:08:33.880 --> 0:08:38.760 This is Bloomberg Technology. 0:08:44.880 --> 0:08:47.719 Now let's turn to Instagram, whose parent company Meta has 0:08:47.760 --> 0:08:50.720 today launched a new campaign meant to help protect teams 0:08:50.760 --> 0:08:54.160 on its platform. The campaign raises awareness of sextortion and 0:08:54.240 --> 0:08:54.920 includes this. 0:08:54.960 --> 0:08:59.760 Ad Let's talk about sex stortion. That's when someone threatens 0:08:59.800 --> 0:09:02.200 to a expose a sexual image or video to get 0:09:02.280 --> 0:09:05.600 you to do something like send money. Here are some 0:09:05.679 --> 0:09:09.880 red flags to look out for someone coming on too strong, 0:09:13.040 --> 0:09:16.120 asking to trade photos. 0:09:16.840 --> 0:09:17.920 Or move to another app. 0:09:19.240 --> 0:09:21.280 I had to talk more about the changes is I'm 0:09:21.360 --> 0:09:24.520 taking any Davis Physic, Global head of Safety for Meta 0:09:24.679 --> 0:09:27.320 and it's not just the ad campaign or crisis line, 0:09:27.360 --> 0:09:29.720 but there's also product features updates. Can you talk us 0:09:29.760 --> 0:09:30.079 through them? 0:09:30.280 --> 0:09:30.559 Yeah? 0:09:30.600 --> 0:09:31.200 Absolutely. 0:09:31.240 --> 0:09:33.880 I'll give you three of the most compelling features. So 0:09:34.000 --> 0:09:37.320 one is the prevention of screenshots. So if you send 0:09:37.800 --> 0:09:40.920 a view once image or video, we're going to prevent 0:09:41.000 --> 0:09:45.040 somebody from screenshotting that image or recording that video. That's 0:09:45.080 --> 0:09:47.880 important because you're sending a signal that you want to 0:09:47.920 --> 0:09:50.240 protect that image and you don't want someone sharing that 0:09:50.280 --> 0:09:55.280 with somebody. The other is blocking the follow requests of 0:09:55.360 --> 0:09:57.160 potentially scamming accounts. 0:09:57.440 --> 0:10:00.000 This is important because we already block. 0:10:00.040 --> 0:10:03.560 Suge requests even from just unconnected accounts for teens, but 0:10:03.600 --> 0:10:05.680 we want to make sure that we're closing down the 0:10:05.800 --> 0:10:08.760 avenues for these scammers to try to find teens on 0:10:08.800 --> 0:10:12.320 the platform, and then the other one is hiding the 0:10:12.400 --> 0:10:16.360 follower and following lists of teens from these potential scammers. 0:10:16.559 --> 0:10:19.960 The reason that's important is because once they have that image, 0:10:20.000 --> 0:10:22.280 they threaten to share with a friends and family that 0:10:22.320 --> 0:10:23.880 they find on those lists. 0:10:24.640 --> 0:10:27.840 And TIGGINGI why is the campaign being launched today and 0:10:27.920 --> 0:10:31.680 not previously a year ago when data showed spikes in 0:10:31.720 --> 0:10:34.800 this kind of activity that you're now trying to prevent 0:10:35.280 --> 0:10:36.040 and crack down on. 0:10:36.360 --> 0:10:37.320 Yeah, thank you very much. 0:10:37.480 --> 0:10:41.600 This is building on initial additional protections that we had 0:10:41.640 --> 0:10:45.040 already launched. So recently we launched teen accounts that put 0:10:45.080 --> 0:10:50.920 teens automatically into private accounts and have our strictest messaging restrictions. 0:10:51.040 --> 0:10:55.040 This is taking it another layer out and it reflects 0:10:55.040 --> 0:10:58.440 a change in the crime. It's moved to becoming a 0:10:58.520 --> 0:11:02.199 financial crime where people ask for more money, and with that, 0:11:02.240 --> 0:11:05.040 there's been a spike of this across the Internet. 0:11:05.960 --> 0:11:08.680 And taken how's the technology changed if there's a change 0:11:08.679 --> 0:11:12.520 in the crime. What my colleague Olivia Carville reported, for example, 0:11:12.600 --> 0:11:16.080 was in the case of Facebook in Nigeria, for example, 0:11:16.320 --> 0:11:21.960 technologies used to as accounterance to suspicious activity. So you 0:11:22.000 --> 0:11:24.280 have the video which we showed, But what's the role 0:11:24.320 --> 0:11:25.320 of technology here. 0:11:25.600 --> 0:11:27.480 Yeah, it's a very very good question. 0:11:27.840 --> 0:11:32.680 The technology tries to identify potentially scamming accounts, and they'll 0:11:32.720 --> 0:11:34.880 do things like they see a new account that. 0:11:34.920 --> 0:11:37.360 Sends a lot of follow requests to a. 0:11:37.400 --> 0:11:40.600 Team that is outside of the teens, that are outside 0:11:40.600 --> 0:11:45.760 of the area where that initial individual is messaging from 0:11:45.840 --> 0:11:46.760 or following from. 0:11:46.880 --> 0:11:48.480 Those are the kinds of signals we use. 0:11:48.520 --> 0:11:51.640 We use a large range of signals to identify these 0:11:51.679 --> 0:11:54.679 scamming accounts potentially scamming. They're not scamming if they're scaming, 0:11:54.720 --> 0:11:57.400 or we're going to remove them, but potentially scamming accounts. 0:11:58.280 --> 0:12:02.960 You'll of course helping hide from these potentially scamming accounts. 0:12:03.200 --> 0:12:05.960 Why not let a teen just hide full stop their 0:12:06.000 --> 0:12:07.439 followers and who they follow. 0:12:07.760 --> 0:12:09.520 Well, it's a good question. 0:12:09.600 --> 0:12:12.959 These are features that are important for connecting and finding 0:12:13.040 --> 0:12:14.920 the people that you're interested in, and we want to 0:12:14.960 --> 0:12:18.200 protect those valuable features for enjoying the app, but we 0:12:18.240 --> 0:12:20.079 want to find ways to make sure that they can't 0:12:20.080 --> 0:12:21.760 be exploited by these scammers. 0:12:22.920 --> 0:12:27.040 You, I'm sure face countless questions and indeed, your company 0:12:27.080 --> 0:12:32.559 and others face countless lawsuits now from families, from authorities 0:12:32.600 --> 0:12:35.120 that feel that what you offer in social media is 0:12:35.160 --> 0:12:38.120 harmful for children, whether indeed it's sextortion or indeed addiction. 0:12:38.920 --> 0:12:41.240 How are you fighting those fights? How do you feel 0:12:41.280 --> 0:12:44.040 that it's coming to you at a lawsuit perspective. 0:12:43.840 --> 0:12:46.800 Well, from my perspective, the thing that's most important is 0:12:46.840 --> 0:12:49.800 to listen to parents and understand what it is that 0:12:49.840 --> 0:12:52.240 they're worried about and make sure that they feel that 0:12:52.280 --> 0:12:54.360 we can that we have the protections that give them 0:12:54.360 --> 0:12:55.160 the peace of mind. 0:12:55.559 --> 0:12:57.679 So we know, for example, parents. 0:12:57.440 --> 0:12:59.520 Are worried about the amount of time that teens are 0:12:59.559 --> 0:13:02.400 spending on the platform. So when we launch teen accounts, 0:13:02.440 --> 0:13:05.320 we've now created it so that between ten pm and 0:13:05.400 --> 0:13:10.240 seven am, they're not getting notifications to their account and 0:13:10.280 --> 0:13:13.400 we're sending an auto apply saying hey, this is time 0:13:13.480 --> 0:13:15.520 for sleep and tikenny. 0:13:15.760 --> 0:13:18.480 I'm interested in the audience you're trying to protect and 0:13:18.559 --> 0:13:21.360 how they use the technology you have. The family of 0:13:21.440 --> 0:13:25.559 apps largely smartphone centric, but sometimes they're accessed through a 0:13:25.600 --> 0:13:29.000 web browser right on the computer. How do you adjust 0:13:29.280 --> 0:13:32.320 your technology and your policy for that, How people actually 0:13:32.360 --> 0:13:34.080 access your applications. 0:13:34.240 --> 0:13:36.280 That's a really good question. One of the things that 0:13:36.320 --> 0:13:39.439 I can give you an example of is for screenshotting, 0:13:39.600 --> 0:13:42.079 So we are now preventing screenshots. As I mentioned, for 0:13:43.400 --> 0:13:46.800 certain types of image sharing on the browser, you can't 0:13:46.840 --> 0:13:50.559 really prevent that screenshot, so we're just preventing them from 0:13:50.559 --> 0:13:53.679 actually sharing seeing the image. 0:13:54.360 --> 0:13:57.360 I go back to the point that you say you're 0:13:57.360 --> 0:14:00.160 listening to what parents and I'm ge I'm sure some 0:14:00.240 --> 0:14:03.840 teams are saying to you, what about as you see 0:14:03.880 --> 0:14:07.000 these legal efforts proceeding, do it in your heart of heartsfield, 0:14:07.080 --> 0:14:08.920 enough is being done for the parents, for the teams 0:14:09.000 --> 0:14:11.160 using it? And do you think the legal way in 0:14:11.160 --> 0:14:13.480 which they're pursuing the claims is the right way for them. 0:14:13.400 --> 0:14:14.760 To try and make change. 0:14:15.000 --> 0:14:17.319 I think one of the things that parents are struggling 0:14:17.360 --> 0:14:20.800 with is a set of standards that they can understand 0:14:20.840 --> 0:14:24.600 for assessing whether their team should use a particular app. 0:14:24.800 --> 0:14:27.280 One of the things that we've been pushing for is 0:14:27.440 --> 0:14:30.960 legislation that would require the operating system or the app 0:14:31.040 --> 0:14:34.640 store to provide apps like ours with the age of 0:14:34.680 --> 0:14:37.360 the user. That would enable us to ensure that we 0:14:37.440 --> 0:14:40.600 can provide an age appropriate experience, and they could also 0:14:40.760 --> 0:14:44.040 set it up so that parents can not approve of 0:14:44.680 --> 0:14:46.920 an app download if they want to. These are the 0:14:46.960 --> 0:14:49.200 kinds of things we need to make it much simpler 0:14:49.200 --> 0:14:49.840 for parents. 0:14:50.680 --> 0:14:52.640 I'm Tikenny Davis thanks to spending out some of the 0:14:52.720 --> 0:14:54.880 changes for those parents and teens. Today, head of Global 0:14:54.880 --> 0:15:07.320 Safety for Meta. 0:15:04.760 --> 0:15:07.840 Big Tech is going nuclear in order to secure the 0:15:07.960 --> 0:15:11.600 energy needed to fuel AI. Here's what Google's senior director 0:15:11.640 --> 0:15:15.560 of Climate and Energy told us yesterday on Bloomberg Technology. 0:15:16.360 --> 0:15:19.520 The world needs more carbon free energy and this agreement 0:15:19.560 --> 0:15:22.720 that we've signed with Cairos is an important milestone in 0:15:22.800 --> 0:15:25.000 what's been a fifteen year journey at Google to make 0:15:25.000 --> 0:15:28.440 the transition to clean energy. It's our first nuclear energy deal, 0:15:28.920 --> 0:15:32.040 and we feel that nuclear is a very important technology 0:15:32.200 --> 0:15:36.160 for going carbon free for officers, data centers, communities where 0:15:36.160 --> 0:15:39.840 we operate because it's an always on carbon free energy resource. 0:15:41.800 --> 0:15:44.800 Google's not the only one. Amazon also announcing half a 0:15:44.840 --> 0:15:48.240 billion dollar investment in nuclear clean energy. Here to discuss it, 0:15:48.360 --> 0:15:52.080 Matt Garman, CEO of AWS, and Matt, welcome back to 0:15:52.080 --> 0:15:56.360 Bloomberg Technology. It's so interesting to see that. Thank you 0:15:56.440 --> 0:15:59.680 to see the hyperscala Is so focused on this. I 0:15:59.720 --> 0:16:02.880 think we start with y SMRs, right, that's a very 0:16:02.920 --> 0:16:04.600 specific avenue to go down. 0:16:05.680 --> 0:16:05.880 Yeah. 0:16:05.880 --> 0:16:08.200 I think SMRs are a great new technology and they're 0:16:08.200 --> 0:16:11.520 an important part of the energy landscape that we're looking at. 0:16:11.920 --> 0:16:14.440 We made a five hundred million dollar investment in a 0:16:14.440 --> 0:16:17.680 company called X Energy that are really I think they're 0:16:17.760 --> 0:16:20.040 one of the leaders in this space, and they're really 0:16:20.080 --> 0:16:21.720 pushing on the technology SMRs. 0:16:22.480 --> 0:16:25.320 They have a couple of advantages. They're able to be. 0:16:25.200 --> 0:16:28.240 Constructed in a smaller footprint, which means you can put 0:16:28.240 --> 0:16:30.760 them closer to where the energy needs to be. They're 0:16:30.760 --> 0:16:34.760 also incredibly safe and easily manufactural, and so they're very 0:16:34.800 --> 0:16:38.840 promising technology and we're quite excited about our investments in 0:16:38.840 --> 0:16:41.040 this space and the partnerships that we have coming up. 0:16:42.400 --> 0:16:46.400 Small modular reactors SMRs For those getting in the acronym lingo, Matt, 0:16:46.400 --> 0:16:49.800 it's great to have you. What about other deals, I mean, 0:16:49.880 --> 0:16:51.880 is this the first of many? 0:16:52.000 --> 0:16:54.920 Yeah, and so a couple of details on the things 0:16:54.920 --> 0:16:57.440 that we announced yesterday. One, we have this investment with 0:16:57.880 --> 0:16:59.800 x Energy, who's a producer of these, but we also 0:16:59.840 --> 0:17:02.920 have have announced two partnerships with utilities and so we're 0:17:02.960 --> 0:17:07.000 actually well down the path, ongoing and actually implementing some 0:17:07.040 --> 0:17:10.560 of these deals. So we have a partnership with Dominion 0:17:10.840 --> 0:17:15.080 in Virginia to go implement an SMR as part of 0:17:15.119 --> 0:17:18.600 their energy footprint here in Virginia and with Energy Northwest 0:17:18.600 --> 0:17:21.760 in Washington and Oregon, and our goal is to deliver 0:17:21.920 --> 0:17:24.760 more than five gigawatts of nuclear energy. We think that 0:17:24.800 --> 0:17:27.600 it's a fantastic opportunity for us to keep pushing on 0:17:27.680 --> 0:17:30.720 the carbon energy footprint that's needed as we continue to 0:17:30.760 --> 0:17:31.679 scale around the country. 0:17:32.359 --> 0:17:34.399 Matt, if you're well down the path and based on 0:17:34.440 --> 0:17:36.720 what you just said, do you have a clear line 0:17:36.760 --> 0:17:39.880 of sight on what the dollar per mega what hour 0:17:39.960 --> 0:17:42.680 is going to be out of those facilities. 0:17:43.800 --> 0:17:44.720 We don't know that yet. 0:17:45.160 --> 0:17:48.080 We're still we are still early and we're still learning 0:17:48.480 --> 0:17:51.840 many of these technologies for these reactors or probably won't 0:17:51.840 --> 0:17:55.040 come online until twenty thirty, so we'll still be learning there. 0:17:55.080 --> 0:17:57.120 But we feel that as we. 0:17:57.080 --> 0:18:00.359 Scale and in the fullness of time, these energy are 0:18:00.359 --> 0:18:02.439 going to be quite competitive from a cost perspective, and 0:18:02.440 --> 0:18:04.840 it's one of the reasons that we're so excited about them. 0:18:05.280 --> 0:18:08.080 Would you bring back a full nuclear plant like three 0:18:08.119 --> 0:18:11.480 mile Island in Pennsylvania. And if so, which. 0:18:11.240 --> 0:18:15.200 One, well, I wouldn't have done that one in particular. 0:18:15.240 --> 0:18:17.800 But we actually have a partnership with Talent where we're 0:18:17.800 --> 0:18:21.480 bringing more energy online in Pennsylvania, and that's we're actually 0:18:21.480 --> 0:18:24.200 the very first company to announce a deal with Talent 0:18:24.920 --> 0:18:26.920 several months ago. And so I think that some of 0:18:26.960 --> 0:18:31.160 these large nuclear plants are also excellent source of energy 0:18:31.200 --> 0:18:33.080 and they're an important part of that. As I said, 0:18:33.240 --> 0:18:35.600 I think small modular reactors are going to be a 0:18:35.720 --> 0:18:38.879 component of what we need for a carbon free energy world, 0:18:39.160 --> 0:18:41.719 but large nuclear plants are going to be an important 0:18:41.720 --> 0:18:45.160 part of that too. And we've said that we'll take 0:18:45.200 --> 0:18:47.919 as much as almost a gigawot of power that we're 0:18:47.960 --> 0:18:51.359 bringing back online from this large plant in Pennsylvania, where 0:18:51.400 --> 0:18:53.720 we'll also be building data centers nearby. So I think 0:18:53.720 --> 0:18:56.800 it's all an important part of the portfolio as we 0:18:56.840 --> 0:18:58.280 move to decarbonized the energy. 0:18:58.640 --> 0:19:01.080 Let's talk about the decobonization, because back when you announce 0:19:01.119 --> 0:19:03.920 that deal in March with Susquehanna, you talked about how 0:19:03.960 --> 0:19:07.040 still the aim is to be by twenty twenty five 0:19:07.320 --> 0:19:10.199 one hundred percent renewable energy. Is that attainable with a 0:19:10.240 --> 0:19:12.920 sudden desire to have AI and the energy that goes 0:19:12.920 --> 0:19:13.240 with it. 0:19:14.240 --> 0:19:14.440 Yeah. 0:19:14.480 --> 0:19:16.879 In fact, we announced that this year we hit one 0:19:16.920 --> 0:19:19.879 hundred percent carbon free energy in our systems, and I 0:19:19.880 --> 0:19:22.320 think that now our goal is how do we, as 0:19:22.359 --> 0:19:24.480 we look at all of the energy demands that the 0:19:24.520 --> 0:19:27.880 business and the world frankly needs, how do we get 0:19:27.920 --> 0:19:31.480 to a continued path on growing carbon free energy. And 0:19:31.480 --> 0:19:33.359 so that's what a lot of these deals are about, 0:19:33.640 --> 0:19:36.000 is for the future. As we look at power that 0:19:36.000 --> 0:19:38.480 we're going to need in twenty five, twenty seven, thirty, 0:19:38.760 --> 0:19:40.920 twenty forty, how do we make sure that we have 0:19:41.520 --> 0:19:44.960 a ramp of power so that as the energy needs grow, 0:19:45.000 --> 0:19:48.920 whether they're from electric vehicles or from companies increasingly digitizing, 0:19:49.080 --> 0:19:51.719 or from generative AI, that we have enough carbon free 0:19:51.800 --> 0:19:53.480 energy to support them. And so it's really a long 0:19:53.560 --> 0:19:55.719 term view that we have, and part of this is 0:19:55.720 --> 0:19:57.919 is on that long term view, how we continue to 0:19:57.920 --> 0:19:59.320 have enough power well into the future. 0:19:59.400 --> 0:20:00.200 Let's talk about. 0:20:00.080 --> 0:20:01.920 Short term view if we come for a minute, Matt though, 0:20:01.960 --> 0:20:05.200 because right here, right now, do you have the power 0:20:05.240 --> 0:20:08.119 that is necessary from the places you want to be 0:20:08.160 --> 0:20:09.200 getting it from. 0:20:10.119 --> 0:20:11.720 We work really hard to make sure that we do. 0:20:12.200 --> 0:20:16.760 Our businesses continuing to grow rapidly, and we're adding new 0:20:16.760 --> 0:20:19.240 power and new data centers all of the time, and 0:20:19.280 --> 0:20:19.760