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Speaker 1: From Marhart where Innovation of Money and Power Collie in

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Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde

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Speaker 1: and Ed Ludlow.

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Speaker 2: I'm Caroline Heindel Bloomberg's world headquarters in New York and

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Speaker 2: I met Ludlow in San Francisco.

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Speaker 3: This is Bloomberg Technology coming.

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Speaker 2: Up Microsoft, it unveils its first custom designed AI and

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Speaker 2: cloud chips. Will discuss what the move means for the

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Speaker 2: company and its.

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Speaker 4: Competitors, and SpaceX planning to spin off its Starlink unit

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Speaker 4: for a public listing as soon as late twenty four.

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Speaker 4: Will bring you the details from our scoop as Elon

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Speaker 4: Musk denies the reporting.

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Speaker 2: And we'll break down what do you expect from the

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Speaker 2: meeting between President Biden and she in San Francisco, as

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Speaker 2: well as what it means for tech's cities future. But

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Speaker 2: let's have a quick check in on these markets, because

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Speaker 2: we're just calming down after a rampant rally that we've

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Speaker 2: seen in the world of stocks, but still holding onto gains.

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Speaker 2: On the nawdslack we're up a tenth of a percent

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Speaker 2: tense that's called it, and in notable we're seeing gains

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Speaker 2: over in China, whether or not we're seeing the fuel

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Speaker 2: feed over from the US into China, but also some

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Speaker 2: of the economic data coming in strong when it comes

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Speaker 2: to retail, when it comes to the consumer there and

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Speaker 2: notably around some of the companies have been reporting their earnings.

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Speaker 2: Of course, we see ten Cent beat, we see JD

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Speaker 2: de Coom beat in terms of their earnings, and therefore

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Speaker 2: we push ahead to what's happening with Ali Baba so

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Speaker 2: green on the screen in China. We're looking at the

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Speaker 2: ten year yield just managing to rise up quite a

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Speaker 2: lot today though remember after we've seen really yields come

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Speaker 2: crashing down as many anticipate that the Federal Reserve is

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Speaker 2: done with its hiking cycle, an indeed many a central

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Speaker 2: bank around the world move Honestly, what's happening in terms

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Speaker 2: of the world a bitcoin actually, for once, we're getting

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Speaker 2: a bit of a bid. Having yesterday been relatively calm,

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Speaker 2: We're at thirty six three hundred and eighty three. We're

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Speaker 2: up more than two point two on the day.

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Speaker 5: Ed.

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Speaker 2: What have you've got in the.

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Speaker 4: Micro Yeah, the story that's broken in the last hour

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Speaker 4: is Microsoft unveiling its first kind of custom sill and

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Speaker 4: it's two chips. In fact, Maya is the AI accelerator

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Speaker 4: for both training and inference, and then you have Cobalt,

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Speaker 4: which sees Microsoft moved into kind of the more generic

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Speaker 4: server design chip space. It's interesting who it's impacted that

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Speaker 4: the news didn't really move the needle. For Microsoft, We're

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Speaker 4: softer three tenths of one percent. I would say that

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Speaker 4: in the last thirty minutes or so, declines on Innvidia

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Speaker 4: have accelerated. We're going to look a bit closer to

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Speaker 4: VideA in just a second. But I would point out

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Speaker 4: that Maya the AI accelerator, it's kind of looking at

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Speaker 4: the specs not the same.

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Speaker 3: As your H one hundred.

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Speaker 4: It's more general use on both the training and inference

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Speaker 4: side rather than that kind of high spec H one hundred.

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Speaker 4: But it's interesting to see the market play out the

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Speaker 4: fact that Invidia is down this Wednesday's session. Well, I'm

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Speaker 4: very sorry to say, Caroline, that the record equalling streak

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Speaker 4: for Nvidia is over as it stands. If we close

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Speaker 4: in the red, Nvidia snaps those ten straight days of gains,

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Speaker 4: which matched its longest streak of winds going back to

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Speaker 4: December twenty sixteen, and eleventh day of gains have been

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Speaker 4: a new record for video. So much momentum though about

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Speaker 4: what they're doing in new chips for China, the H

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Speaker 4: one hundred is still pretty much the only game in

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Speaker 4: town when you're training those foundation models with billions and

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Speaker 4: billions of parameters. But what does this Microsoft mean news mean?

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Speaker 4: For kind of more general AI, Let's bring in Richie Juluria,

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Speaker 4: Managing director and software exit research analysts at RBC Capital Markets,

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Speaker 4: currently has an outperformed rating on shares of Microsoft a

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Speaker 4: three hundred and ninety dollars price target. Richie, you kind

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Speaker 4: of heard my explanation and my reaction to both.

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Speaker 3: Myra and Cobolt. What is yours?

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Speaker 6: Yeah? And then thanks so much for having me really

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Speaker 6: appreciate it.

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Speaker 7: I'm actually here in New York at our RISI's low

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Speaker 7: tech confer concreates and as he can imagine Generator VII

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Speaker 7: front and center and all our conversations and look, one

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Speaker 7: of the themes that we hear from a lot of

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Speaker 7: companies is it is prohibibly expensive to do generative right,

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Speaker 7: not just the training, but the inferencing, trying to add

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Speaker 7: domain extra keys connecting all these different systems and so

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Speaker 7: what I think Microsoft brings here is they can help

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Speaker 7: themselves and other companies overcome this big GPU sort this

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Speaker 7: out there. As you said, respects aren't quite the same

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Speaker 7: exactly as an A one hundred. But I think what's

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Speaker 7: what's interesting is you don't necessarily need only eight hundreds

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Speaker 7: to do all your training, especially if you're thinking about

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Speaker 7: you know, more domain specific models or trying to do

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Speaker 7: some you know, additional tooling on top of TPT for

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Speaker 7: or LAMA too, and so this creates I think, more

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Speaker 7: accessibility for large language models, for you know, software companies,

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Speaker 7: for industry companies to enbridge generate b I without seeing

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Speaker 7: a huge cost drag.

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Speaker 6: So I'm really excited to see this news.

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Speaker 7: This is something that we suspected for a long time,

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Speaker 7: but I think it is ultimately going to make ANYI more.

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Speaker 2: Accessible TSMC, I think making the chips sort of behind

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Speaker 2: from a technology perspective. But I'm interested in rich as

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Speaker 2: to what this does mean for competitors. Amazon has already

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Speaker 2: been doing this, Alphabet's Google has already been doing this

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Speaker 2: with their cloud provisions. Does it who does it impact?

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Speaker 2: It feels like maybe Intel's the one to be watching.

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Speaker 7: Yeah, Look, I think it impacts everyone, right, I think,

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Speaker 7: you know, we're gonna have to see how this specs

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Speaker 7: between a WUSS chips and GCPS chips and Microsoft chip compare.

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Speaker 7: But Microsoft has already this kind of pole position as

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Speaker 7: being the leader when it comes to enterprise generative AI,

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Speaker 7: and I think there's only bolts that that companies now

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Speaker 7: that they can go to Microsoft and they may not

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Speaker 7: need to go to someone like Oracle that has excess

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Speaker 7: GPU capacity. They can stick with Microsoft because now Microsoft

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Speaker 7: has the capacity, given they's some of the ability to

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Speaker 7: develop this in house. So this is probably I think

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Speaker 7: positive for Microsoft. Probably it's going to be you know,

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Speaker 7: as you said, there are absolute direct complications for Intel,

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Speaker 7: for AMD, for others within the chip space, But overall,

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Speaker 7: I think.

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Speaker 6: This is just going to be positive for Microsoft and OI.

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Speaker 4: It's so interesting to see what some of these names

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Speaker 4: and trading right now. Intel's up two percent in the session.

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Speaker 4: Krror makes such a good point that this battle ground

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Speaker 4: seems like the lower end of the ex elerate A market.

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Speaker 4: I'm looking specifically at Microsoft though, right, Richie, That's why

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Speaker 4: we're here. It's down two tents of what at percent

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Speaker 4: is kind of like a muted reaction. Does that signal

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Speaker 4: that this just isn't a game changer for Microsoft's cloud business, Like,

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Speaker 4: why is there not a more significant reaction in the

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Speaker 4: stock heare.

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Speaker 7: Yeah, look, I think people are the jury is still

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Speaker 7: out right. As you correctly pointed out, these specs aren't

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Speaker 7: exactly up to the top of the line GPUs from Nvideo,

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Speaker 7: and you know, given Microsoft's pace of innovation, perhaps investors

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Speaker 7: we were expecting something like that. I think Microsoft will

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Speaker 7: eventually get there. I think they've shown they have the

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Speaker 7: ability to innovate and move very quickly, and that might

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Speaker 7: explain why.

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Speaker 6: There's maybe a little bit of media reaction.

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Speaker 7: I'll also say, beyond the chips, some of the product

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Speaker 7: announcements we've seen so far out of Big Night may

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Speaker 7: not be as exciting as people were hoping to see.

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Speaker 6: I think on in my view.

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Speaker 7: There's a lot of exciting stuff that we're already seeing.

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Speaker 7: And you know, obviously this keynote is about to kick off.

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Speaker 7: I think we're going to.

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Speaker 6: See a lot more.

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Speaker 7: So I wouldn't be surprised as as the conference and

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Speaker 7: the date goes on, Microsoft stock actually moves up, assuming

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Speaker 7: that they continue to make you know, I think announced

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Speaker 7: with that excite people. Gives some stats around M three

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Speaker 7: sixty five adoption. I really like that they've rebranded being

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Speaker 7: Enterprise Chat as Microsoft Copilot. I think that makes it

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Speaker 7: a much more digestible, kind of straightforward value proposition, and

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Speaker 7: I think this just opens up a lot of innovation

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Speaker 7: from Microsoft.

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Speaker 2: We see as we do anticipate what Satya is going

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Speaker 2: to say on stage, it is interesting that it looks

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Speaker 2: like it's the price that is becoming front and center.

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Speaker 2: Now we have that with open Ayes Developers Day as well.

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Speaker 2: It all seemed to be suddenly a bit of a

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Speaker 2: race to offer more and accessibility and GPTs and chats.

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Speaker 2: As we're seeing more more assistance, but with a cheaper

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Speaker 2: price point, a new lower price for clients. For example

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Speaker 2: of Microsoft three six y five copilot product for the

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Speaker 2: office software and the sales copilot. Is it going to

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Speaker 2: be a bit of a rush down? Onds do you

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Speaker 2: think in the price point of all of these.

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Speaker 6: I actually don't think so.

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Speaker 7: In fact, I would argue, I mean, going to open

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Speaker 7: Ai twenty dollars a month is actually too cheap for

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Speaker 7: what you're getting out of chatting PG four Assuming you're

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Speaker 7: a power user, which I would consider myself to be

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Speaker 7: one of those. For Microsoft Copilot, the name of the

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Speaker 7: game here is not about lowering the price. It's about

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Speaker 7: adding new features and adding new capabilities. And so now

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Speaker 7: you know, with the announcements today what you used to

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Speaker 7: call being at a price chat now is Microsoft Copilot

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Speaker 7: is part of that thirty dollars per user per month

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Speaker 7: that was in the M through sixty five steed that

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Speaker 7: got released earlier this month. You also have connectivity of

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Speaker 7: ent through sixty five Copilot too, systems of record like

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Speaker 7: service now on workday and so to me, as long

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Speaker 7: as Microsoft continues to grow what is included in that

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Speaker 7: s few in that thirty dollars per user per month,

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Speaker 7: I think people are going to be able to justify

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Speaker 7: that price pretty easily. And look, look no further than

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Speaker 7: getthub Copilot. Get up Copilt has been a you know,

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Speaker 7: the most mature enter a product for Microsoft.

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Speaker 6: It's been you know, I think a slam dunk in chef.

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Speaker 7: You look at the metrics in terms of developing productivity,

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Speaker 7: new code generation, and I wouldn't be surprised if we

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Speaker 7: start to see the same out of M through six

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Speaker 7: SOL code Pilot as it continue to innovate, you know,

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Speaker 7: maybe you know, for an Excel junkie like me, we'll

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Speaker 7: get an Excel copilot that makes my life of building

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Speaker 7: financial models and doing data analysis a lot easier over

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Speaker 7: the next year. So really the name of the game

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Speaker 7: is going to be innovation and adding more features, not

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Speaker 7: lowering price.

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Speaker 4: Okay, I just want to jump in and point out

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Speaker 4: that the open ai is going to be testing the

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Speaker 4: Azure and Maya one hundred, and the relationship is so

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Speaker 4: interesting because open ai relies on Microsoft not just for

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Speaker 4: cash but compute credits. They also like rely on Nvidia

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Speaker 4: the badge of honor of the h one hundred. It's complicated,

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Speaker 4: but it's going to be interesting to see in the

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Speaker 4: end who's going to win the computing ward just wanted

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Speaker 4: to say, yeah.

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Speaker 2: A lot of friends or a frenemies, and a lot

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Speaker 2: of deal making. I mean, we heard earlier this week

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Speaker 2: that someone when I'm still banking on Microsoft, perhaps injecting

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Speaker 2: more money as it.

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Speaker 3: Goes forwards and grows.

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Speaker 2: Richie, Julia, it's so great. We'll let you get back

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Speaker 2: to the conference go into all the conversations around untender

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Speaker 2: to AI. We thank you for the LBC Capital Markets.

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Speaker 2: China's President Hijingping has touchdown in San Francisco for APEX,

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Speaker 2: where he's expected to sit down with the US President

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Speaker 2: Joe Biden. Today. Joining us now is Blomberg's Amory Holden,

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Speaker 2: and it was three pm local time that we saw

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Speaker 2: these pictures of him exiting his plane. Of course, Treasury

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Speaker 2: Secretary Ellen there to help greet as well as Gavin Newsom. Amri.

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Speaker 2: There is a whole lot widing on this, and a

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Speaker 2: whole lot of protection as well going on. Yeah, there's

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Speaker 2: a lot of protection.

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Speaker 8: I can tell you that it took a while actually

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Speaker 8: to get to where I'm standing right now. A ton

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Speaker 8: of security in San Francisco, and Ed can attest to

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Speaker 8: that as well. But this is a high stakes meeting

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Speaker 8: and it's actually happening outside of San Francisco proper, at

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Speaker 8: an estate a little bit more relaxed feel, has sixteen

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Speaker 8: acres of gardens. It kind of is reminiscent of when

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Speaker 8: Xi Jinping came during the Obama administration and they met

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Speaker 8: in Palm Springs and really lived physically. They were rolling

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Speaker 8: off their sleeves to get to work. So for the

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Speaker 8: Biden administration, we heard from President Biden before he departed

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Speaker 8: the White House to San Francisco yesterday, talking about the

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Speaker 8: fact that he just wants to get relationships to a

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Speaker 8: normal correspondence, to be able to pick up the phone

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Speaker 8: during times of conflict, to make sure that their militaries

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Speaker 8: go back to normal communication, a normal dialogue, a normal

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Speaker 8: cadence of that dialogue that we saw really just ripped

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Speaker 8: apart following former Speaker Nancy Pelosi's visit to Taiwan last summer.

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Speaker 8: And for Shijingpeng, he's obviously dealing domestically with an economy

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Speaker 8: that hasn't bounced back as some were hoping following the pandemic,

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Speaker 8: a property market that is dismal at the moment, and

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Speaker 8: a very high youth unemployment rate this summer is at

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Speaker 8: twenty percent now was the last time we saw the data.

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Speaker 2: So for Shijingping, this is a moment of potentially trying.

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Speaker 8: To open up some more goodwill on the economic front,

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Speaker 8: not just with President Biden, but also this evening when

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Speaker 8: he meets with chief executive officers, right.

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Speaker 4: I mean, we've heard from sources that you know, the

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Speaker 4: who's who of tech execs are trying to get into

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Speaker 4: that dinner. The aim is to thaw relationships, particularly on

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Speaker 4: the economic side, right, amh. But the battleground here is

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Speaker 4: that the US has these technology export curves on China

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Speaker 4: in the context of AI and chips. Is that going

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Speaker 4: to be a factor here, Well, this.

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Speaker 8: Is something that Shijingping would love to get rid of.

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Speaker 8: But we already heard from the Treasury Secretary Janet Yellen,

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Speaker 8: and we heard from President Biden himself, and Biden Yesterudary

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Speaker 8: was saying how it is in the US interest if

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Speaker 8: an average Chinese citizen is able to go out and

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Speaker 8: have a working wage and make a decent living. But

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Speaker 8: Biden was very clear he will not move economically if

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Speaker 8: it impedes US national security interest. So those export controls,

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Speaker 8: those penalties, those types of sanctions, they're not going anywhere

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Speaker 8: anytime soon.

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Speaker 4: All right, Bloomberg's Amory Horden will be on the ground

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Speaker 4: at APEC all week. We will continue to bring you

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Speaker 4: that reporting. Thank you so much. Let's get more and

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Speaker 4: bring in doctor Oriana Skyla Mastro, a Center Fellow at

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Speaker 4: the Freeman's Folly Institute for International Studies at Stanford University, DODR.

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Speaker 4: Mastro also for of Upstart. How China became a great power.

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Speaker 4: Welcome to the program, Dr Mastro. You heard a Marie

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Speaker 4: set out the discussion points between Biden and g For you,

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Speaker 4: what is the most significant point of discussion between those

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Speaker 4: two leaders.

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Speaker 9: Well, I think both sides are saying the fact that

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Speaker 9: they're even meeting to discuss anything is the biggest takeaway.

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Speaker 9: We are facing a bunch of issues right now, security, economic,

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Speaker 9: that as the two most powerful countries in the world,

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Speaker 9: the United States and China, need to be able to

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Speaker 9: collaborate and talk about.

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Speaker 5: These issues together.

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Speaker 9: And if we don't have routine and sustain and predictable

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Speaker 9: visits between the two leaders, this becomes increasingly difficult and

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Speaker 9: it's hard to sustain anything that they might even agree

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Speaker 9: to add this visit. And so really what I'll be

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Speaker 9: looking for is not only the types of topics that

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Speaker 9: they're going to discuss and what's on the agenda for

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Speaker 9: whether or not they actually have any sort of frank exchange.

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Speaker 2: I'm interested to dig into really the perfect points around

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Speaker 2: your book that's forthcoming, the idea that through they've built

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Speaker 2: up China in particular, it's built up this power, whether

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Speaker 2: it be militarily, whether it be economically, whether it be

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Speaker 2: entrepreneurially in many ways, but you sort of outline how,

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Speaker 2: and it's through strategic emulation, through exploitation, through entrepreneurship. And

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Speaker 2: I'm interested in from the tech perspective whether all this

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Speaker 2: tip for tat that we continue to see, particularly when

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Speaker 2: it's limitations to access to chips, for example, just is

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Speaker 2: going to be the normal? Would that be your policy recommendation.

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Speaker 9: Well, I think the prediction would be that China is

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Speaker 9: going to be somewhat entrepreneurial and its approach to this

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Speaker 9: tech competition. In many cases, when I talk to investors,

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Speaker 9: they often express some frustration with the economic decisions that

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Speaker 9: China makes at home. But as I lay out in

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Speaker 9: the book, party control is one of the main factors

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Speaker 9: that decides for China which strategy they're going to pursue.

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Speaker 5: And a lot of times they can't emulate what the.

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Speaker 9: United States is doing because it doesn't it's not conducive

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Speaker 9: for their domestic political system at home, so they have

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Speaker 9: to go another route. Sometimes that route is relatively ineffective,

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Speaker 9: like we see with soft power and perhaps the speed

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Speaker 9: at which the Renman b is becoming a reserve.

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Speaker 5: Currency without loosening capital controls that's going to be difficult

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Speaker 5: for China, but.

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Speaker 9: I have no doubt that as they face these new challenges,

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Speaker 9: they're going to try to think of new ways to

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Speaker 9: exploit their own competitive advantages gaps in the international system,

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Speaker 9: for example, and standards and other areas that are important

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Speaker 9: for technology to still try to get ahead.

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Speaker 4: Dodr Mashtro Corporate America, according to our reporting, is doing

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Speaker 4: everything it can to get into that room and have

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Speaker 4: dinner with President G. You heard us outline earlier in

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Speaker 4: the program about the technology export curves in place. Do

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Speaker 4: you think that g can have any kind of leverage

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Speaker 4: he can use the interest of technology CEOs in meeting

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Speaker 4: him to go to Biden and say, look, everyone wants

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Speaker 4: to do business here.

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Speaker 9: I am highly doubtful that that would work, honestly speaking,

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Speaker 9: not only from the US restricted but also from the

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Speaker 9: Chinese perspective. With Chijenping, power is more important than prosperity.

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Speaker 9: There's many decisions that we have seen him make that

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Speaker 9: if economic prosperity with a number one priority, he would

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Speaker 9: have done something completely different. I think the COVID zero

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Speaker 9: policy is a perfect example of that, and the same

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Speaker 9: for the United States national security now Trump's all things.

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Speaker 9: The Chinese military has been modernizing at a pace and

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Speaker 9: a speed and at a level that it now presents

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Speaker 9: a threat to the United States, and so we can

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Speaker 9: no longer turn a blind eye to certain technologies that

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Speaker 9: can be dual use.

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Speaker 5: And so perhaps those.

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Speaker 9: Leaders will get into the room and have a very

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Speaker 9: pleasant meeting with Chigenping. But I don't think he's going

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Speaker 9: to change his approach to technology control at home. That

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Speaker 9: is important for his own control over the country, and

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Speaker 9: it's not going to convince the United States to put itself.

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Speaker 5: At risk for the sake of economic prosperity.

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Speaker 2: We have seen such a change in supply chains. It's

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Speaker 2: been focused through COVID, whether or not it's been the

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Speaker 2: geopolitics at play. Ultimately the corporates that you speak to

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Speaker 2: about this, is that just going to be the narrative

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Speaker 2: going forward? We are going to see more of a

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Speaker 2: bifurcation or not.

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Speaker 9: Well, I really hope it doesn't get to that level

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Speaker 9: of a complete bifurcation in two different blocks. I was

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Speaker 9: in China two weeks ago having a dialogue with the Chinese,

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Speaker 9: and they have the often.

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Speaker 5: Retort that the United States is trying to contain them.

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Speaker 9: You know, US policy and limited export controls is no

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Speaker 9: way a containment of China, and I hope we don't

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Speaker 9: move in that direction because our economies are quite interdependent.

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Speaker 9: But I think what we're seeing is a lot of

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Speaker 9: leaders understand that de risking is important, whether it's supply

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Speaker 9: chains for the United States so we can continue to.

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Speaker 5: Fight wars if we have to, or for leaders that

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Speaker 5: might have manufacturing hubs within China.

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Speaker 9: It is important to have a plan B because this

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Speaker 9: is not the Cold War. The United States and China

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Speaker 9: have some conflicting interests, and it's possible.

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Speaker 5: That the two sides find themselves at blows.

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Speaker 2: Doctor Rianna Skylo Mastro fascinating me. Thank you so much

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Speaker 2: of Stanford University, and of course much more. Meanwhile, coming up,

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Speaker 2: let's talk a little bit about the private markets. SpaceX

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Speaker 2: considering spinning off its Starlink unit to a public company

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Speaker 2: as soon as twenty twenty four. Well, guess who's behind that,

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Speaker 2: reporting One Ed Ludlow. We'll speak about it in a minute.

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Speaker 2: This is Bloomberg Technology.

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Speaker 4: Okay, Bloomberg reporting this morning SpaceX is discussing an IPO

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Speaker 4: for its Starlink satellite business. As soon as the end

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Speaker 4: of next year twenty twenty four, on robust demand. Elon

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Speaker 4: Musk responded almost immediately after we published that story in

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Speaker 4: response to a user on x, the platform formerly known

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Speaker 4: as Twitter, saying false.

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Speaker 3: That's all.

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Speaker 4: He said, without elaborating. Let's bring in bloombo Ryan Gord,

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Speaker 4: who is one of the reporters that report this story

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Speaker 4: with me. Right, let's go over the mechanics of what

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Speaker 4: we know.

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Speaker 10: Yeah, that's right, Ed. Obviously, great to share a byline

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Speaker 10: with you. It's the technology. But last night we reported

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Speaker 10: that this morning, even though we reported that SpaceX has

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Speaker 10: started discussing a potential of public offering for Starlink as

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Speaker 10: soon as the end of next year, it has started

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Speaker 10: to move the satellites satellite Company's assets into a wholly

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Speaker 10: owned subsidiary that would eventually be spun off in an IPO.

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Speaker 3: Obviously, you just mentioned that.

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Speaker 10: The Mask himself said this morning that you know this

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Speaker 10: reporting was false. But you know, we just say that,

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Speaker 10: of course, no final decisions have been made, and that

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Speaker 10: SpaceX could opt to attain the unit. But you know,

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Speaker 10: this is something that I think Musk has, as we know,

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Speaker 10: spoken about over some times sort of hinted at this

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Speaker 10: at various occasions.

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Speaker 3: He has said that, you.

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Speaker 10: Know, in twenty twenty one, as far back as twenty

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Speaker 10: twenty one, that starlink with list shares once it could

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Speaker 10: make predictions reasonably well about cash flow. Of course, on

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Speaker 10: the and he said that starlink had reached cash flow

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Speaker 10: break even. So for all of the posturing and the gesturing,

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Speaker 10: I think, you know, it's interesting that you know, we

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Speaker 10: put out the support yesterday this morning, I keep saying,

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Speaker 10: and you know, yeah, we'll see.

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Speaker 2: I mean, the reporting takes a little bit of time. Ryan,

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Speaker 2: I'm interested in, ed, is what an about turn this

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Speaker 2: actually sort of is. I mean, it's not that long

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Speaker 2: ago since we used to discuss well, concerns around just

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Speaker 2: trying not to get bankrupt basically in starlink. But what

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Speaker 2: fueled its sudden.

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Speaker 4: Growth, Well, it's consistent with what we reported, right, must

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Speaker 4: saying that it has reached cash flow break even, but

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Speaker 4: that reporting last week. Starlink could bring in ten billion

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Speaker 4: dollars a revenue next year. That would make it the

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Speaker 4: vast majority of SpaceX revs overall. And it's working. You know,

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Speaker 4: if you look at a map of where Starlink's deployed

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Speaker 4: around the world. It is widespread. It offers connectivity satellite

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Speaker 4: based internet for people around the world that have not

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Speaker 4: been able to get access to fast feed internet before.

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Speaker 4: The demand is there, and we know that the rollout

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Speaker 4: has been careful and slow because there's a regulatory component,

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Speaker 4: but there is demand for this and it's the centerpiece

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Speaker 4: of SpaceX's future, right the cash cow.

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Speaker 3: The musters will take us to Mars.

439
00:21:12,119 --> 00:21:14,280
Speaker 2: And just think how slow competitors have been there, like

440
00:21:14,720 --> 00:21:18,399
Speaker 2: Amazon Stalls cautiously going through it with Project Kuiper, but

441
00:21:18,800 --> 00:21:20,879
Speaker 2: not coming anytime soon. In terms of the pace that

442
00:21:20,920 --> 00:21:23,600
Speaker 2: we've really seen from SpaceX. We want to thank you

443
00:21:23,640 --> 00:21:26,040
Speaker 2: for all of your bylines. There are another couple Gillian

444
00:21:26,080 --> 00:21:26,800
Speaker 2: and Esteban on.

445
00:21:26,800 --> 00:21:27,240
Speaker 3: It as well.

446
00:21:27,280 --> 00:21:29,720
Speaker 2: Great reporting, Ryan Geld, We thank you, Anadin of course.

447
00:21:30,000 --> 00:21:40,680
Speaker 4: And Ludlow, Welcome back to Bloomberg Technology.

448
00:21:40,720 --> 00:21:42,160
Speaker 3: I'm Ed Ludlow in San Francisco.

449
00:21:42,240 --> 00:21:43,600
Speaker 2: I'm parent I had in New York. Let's get to

450
00:21:43,600 --> 00:21:45,159
Speaker 2: you a quick check on these markets. Halfway through this

451
00:21:45,200 --> 00:21:47,359
Speaker 2: training day, we are managing to sustain some sort of

452
00:21:47,400 --> 00:21:50,000
Speaker 2: gains in the Nasdaq and the Nasdaq one hundred. We're

453
00:21:50,000 --> 00:21:52,119
Speaker 2: currently up about a tenth percent. Now, remember we were

454
00:21:52,160 --> 00:21:54,480
Speaker 2: up more than two percent on this benchmark yesterday, so

455
00:21:54,840 --> 00:21:56,960
Speaker 2: just cooling after the rampant growth. We've got a little

456
00:21:56,960 --> 00:21:58,920
Speaker 2: bit of a Goldilock scenario going on with the data

457
00:21:58,920 --> 00:22:01,879
Speaker 2: once again today. Retail sales are calling a little bit,

458
00:22:01,920 --> 00:22:04,479
Speaker 2: but still looking resilient into the holiday period. And that

459
00:22:04,520 --> 00:22:07,640
Speaker 2: PPI number those producer price is actually showing some pullback.

460
00:22:07,680 --> 00:22:11,560
Speaker 2: That inflationary anxiety dialing down will market it sells off,

461
00:22:11,600 --> 00:22:13,639
Speaker 2: but the Golden dragon over of course, then thea's that

462
00:22:13,680 --> 00:22:17,920
Speaker 2: golden dragon really showing some fuel and buying of Chinese

463
00:22:18,119 --> 00:22:20,640
Speaker 2: related companies that are traded here in the United States.

464
00:22:20,640 --> 00:22:22,720
Speaker 2: We're up three and a half percent after we have

465
00:22:22,840 --> 00:22:25,280
Speaker 2: beat some ten cent JD dot Com in particular, we

466
00:22:25,320 --> 00:22:27,960
Speaker 2: all look at Ali Baba also. Of course, there's still

467
00:22:28,240 --> 00:22:30,200
Speaker 2: hope that we might see some stimulus going into the

468
00:22:30,280 --> 00:22:32,520
Speaker 2: Chinese economy. Big day for US and China. Of course,

469
00:22:32,560 --> 00:22:35,520
Speaker 2: from a geopolitical perspective, Bitcoin currently up two point three percent.

470
00:22:35,600 --> 00:22:37,720
Speaker 2: Go into the individual movers though on the day, and

471
00:22:37,760 --> 00:22:40,560
Speaker 2: we do want to highlight some of the individual idiosyncratic

472
00:22:40,600 --> 00:22:42,679
Speaker 2: news coming from well, the likes of JD dot Com

473
00:22:42,720 --> 00:22:44,800
Speaker 2: with its numbers doing well We're up more than seven percent.

474
00:22:44,840 --> 00:22:46,720
Speaker 2: All eyes on Alibaba for after the bell. I'm looking

475
00:22:46,720 --> 00:22:48,879
Speaker 2: at Amazon down by one point eight percent, and this

476
00:22:48,920 --> 00:22:51,800
Speaker 2: is related to what's happening with Microsoft. Potentially Microsoft now

477
00:22:51,880 --> 00:22:54,399
Speaker 2: going in with its own chips making sure that its

478
00:22:54,400 --> 00:22:56,480
Speaker 2: supply chain is under control when it comes to AI

479
00:22:56,520 --> 00:22:59,439
Speaker 2: related chips, those in data centers. Amazon has already been

480
00:22:59,480 --> 00:23:01,480
Speaker 2: doing that. Who is alphabet as of course Google and

481
00:23:01,480 --> 00:23:03,719
Speaker 2: many of the cloud providers. Amazon just down by one

482
00:23:04,000 --> 00:23:07,200
Speaker 2: point seven percent. Maybe that's also about the retail data

483
00:23:07,240 --> 00:23:09,639
Speaker 2: that just showed a little bit of calling so appetite

484
00:23:09,640 --> 00:23:11,639
Speaker 2: for some retail related names in China not so much

485
00:23:11,800 --> 00:23:13,959
Speaker 2: here in the United States. But then while we're going

486
00:23:14,000 --> 00:23:16,400
Speaker 2: to be going into where some of these companies heil from,

487
00:23:16,440 --> 00:23:18,440
Speaker 2: we're all talking about Silicon Valley day in, day out.

488
00:23:18,480 --> 00:23:20,960
Speaker 2: From a geopolitical perspective, we talk about San Francisco on

489
00:23:20,960 --> 00:23:21,600
Speaker 2: the day as well.

490
00:23:22,200 --> 00:23:24,280
Speaker 4: So there's a spotlight on this city this week because

491
00:23:24,280 --> 00:23:26,000
Speaker 4: of APEX. But I want to bring you another story

492
00:23:26,000 --> 00:23:29,119
Speaker 4: that was in Bloomberg BusinessWeek this morning. Michael Moritz, the

493
00:23:29,160 --> 00:23:32,919
Speaker 4: prominent venture investor who became known basically for making early

494
00:23:33,000 --> 00:23:36,840
Speaker 4: investments in Google LinkedIn PayPal, Yahoo. That was during the

495
00:23:36,920 --> 00:23:40,359
Speaker 4: years where he was a partner at SCA Capital. Moritz

496
00:23:40,440 --> 00:23:43,359
Speaker 4: is now focusing on investing his time and money in

497
00:23:43,480 --> 00:23:46,840
Speaker 4: remaking San Francisco, a city that he thinks has lost

498
00:23:46,840 --> 00:23:50,480
Speaker 4: its way. Moritz has lived there here for four decades

499
00:23:50,480 --> 00:23:53,560
Speaker 4: and is dedicated get this, carry more than three hundred

500
00:23:53,600 --> 00:23:57,680
Speaker 4: million dollars since twenty twenty to both social and political

501
00:23:57,720 --> 00:24:01,119
Speaker 4: causes in this city, basically funding hundreds of nonprofits in

502
00:24:01,160 --> 00:24:03,119
Speaker 4: different advacy advocacy groups.

503
00:24:03,359 --> 00:24:05,000
Speaker 3: The spotlights here in SF.

504
00:24:04,880 --> 00:24:08,000
Speaker 2: It is the spotlight is also on ultimately the remaking

505
00:24:08,000 --> 00:24:10,960
Speaker 2: of the city. Particularly as we keep talking about generative

506
00:24:10,960 --> 00:24:13,440
Speaker 2: of ai is, Suddenly it becomes more of a hub

507
00:24:13,520 --> 00:24:16,480
Speaker 2: cerebral value as we talk about it, the scale of

508
00:24:16,520 --> 00:24:18,679
Speaker 2: appetite for a rental space. We're going to have so

509
00:24:18,760 --> 00:24:21,040
Speaker 2: much of this conversation throughout the show. Let's keep talking

510
00:24:21,040 --> 00:24:23,760
Speaker 2: about San Francisco's future and revival right now when Natalie

511
00:24:23,800 --> 00:24:27,440
Speaker 2: is sendover, executive director of the Urban Land Institute San Francisco,

512
00:24:27,520 --> 00:24:31,800
Speaker 2: a network of cross disciplinary real estate land news experts

513
00:24:31,800 --> 00:24:36,520
Speaker 2: which is working towards this exact goal, this rejuvenation. Maybe

514
00:24:36,560 --> 00:24:38,919
Speaker 2: it's a pr effort, maybe it's a reality effort that

515
00:24:38,960 --> 00:24:42,399
Speaker 2: people haven't been coming back to San Francisco proper in

516
00:24:42,520 --> 00:24:45,560
Speaker 2: terms of the office space. What was it, thirty percent

517
00:24:45,640 --> 00:24:49,000
Speaker 2: of office space just unleashed as it stands. Is that

518
00:24:49,200 --> 00:24:49,840
Speaker 2: changing at all?

519
00:24:49,920 --> 00:24:56,000
Speaker 11: Natalie, Yeah, thank you for inviting me. I think you know,

520
00:24:56,240 --> 00:24:59,560
Speaker 11: you and I recently brought together a group of national

521
00:24:59,600 --> 00:25:02,399
Speaker 11: experts from around the country to talk about just that

522
00:25:02,520 --> 00:25:06,800
Speaker 11: downtown revitalization and you know, what can be the future

523
00:25:06,840 --> 00:25:10,160
Speaker 11: for San Francisco. And what was interesting is we had

524
00:25:10,200 --> 00:25:12,480
Speaker 11: all of these folks come in from around the country

525
00:25:12,520 --> 00:25:15,800
Speaker 11: expecting this horrid environment and really they were surprised. They

526
00:25:16,000 --> 00:25:18,760
Speaker 11: were like, it's not that bad. And you know, with

527
00:25:18,840 --> 00:25:22,280
Speaker 11: every crisis comes opportunity. And I really do think coming

528
00:25:22,320 --> 00:25:24,440
Speaker 11: out of the recommendations from this panel, there really is

529
00:25:24,480 --> 00:25:28,639
Speaker 11: a lot of opportunity for downtown San Francisco, particularly thinking

530
00:25:28,680 --> 00:25:31,359
Speaker 11: about how we can diversify the mix of uses to

531
00:25:31,400 --> 00:25:33,399
Speaker 11: really make it a great neighborhood.

532
00:25:34,600 --> 00:25:37,040
Speaker 4: Natalie, good morning. You're over in Oakland. I'm here in

533
00:25:37,080 --> 00:25:38,600
Speaker 4: San Francisco. I just want to go back on what

534
00:25:38,600 --> 00:25:41,879
Speaker 4: you just said. So earlier this year, ULI convened this

535
00:25:41,960 --> 00:25:44,960
Speaker 4: group of people and you basically showed them San Francisco,

536
00:25:45,440 --> 00:25:48,480
Speaker 4: and they were pleasantly surprised. I understand on the health

537
00:25:48,520 --> 00:25:51,479
Speaker 4: and state of this city. I sawed this week by

538
00:25:51,480 --> 00:25:55,040
Speaker 4: speaking to the mayor and said, look, everyone is asking

539
00:25:55,160 --> 00:25:57,320
Speaker 4: how you were suddenly able to clear up the city

540
00:25:57,320 --> 00:26:00,080
Speaker 4: in a week because the president is in town and

541
00:26:00,119 --> 00:26:03,600
Speaker 4: the president of China is in town. To be very clear,

542
00:26:03,760 --> 00:26:07,600
Speaker 4: your findings well before APEC were that San Francisco is

543
00:26:07,600 --> 00:26:08,480
Speaker 4: making improvement.

544
00:26:09,960 --> 00:26:13,000
Speaker 11: Yes, absolutely, And I think that the narrative around San

545
00:26:13,040 --> 00:26:16,480
Speaker 11: Francisco and the doom loop is really a narrative that

546
00:26:16,680 --> 00:26:19,280
Speaker 11: isn't quite accurate. I think the city has actually been

547
00:26:19,320 --> 00:26:21,159
Speaker 11: hard at work at making changes.

548
00:26:21,320 --> 00:26:22,200
Speaker 12: For a while now.

549
00:26:23,000 --> 00:26:25,600
Speaker 11: Particularly, you know, our work has been focused on the

550
00:26:25,600 --> 00:26:28,760
Speaker 11: financial district of downtown San Francisco, and that's where our

551
00:26:28,800 --> 00:26:32,680
Speaker 11: panelists spent their time, and there was really a general

552
00:26:32,720 --> 00:26:36,000
Speaker 11: consensus that it felt pretty clean and safe.

553
00:26:36,640 --> 00:26:38,320
Speaker 12: You know, there was some activity on the street.

554
00:26:38,359 --> 00:26:41,000
Speaker 11: It obviously wasn't exactly like it was in the pre

555
00:26:41,080 --> 00:26:44,119
Speaker 11: pandemic days. You know, there's still some work to be

556
00:26:44,200 --> 00:26:47,600
Speaker 11: done on the kind of gateways and the connectors to

557
00:26:47,680 --> 00:26:50,520
Speaker 11: the financial district of downtown San Francisco. But I do

558
00:26:50,560 --> 00:26:53,440
Speaker 11: think that the city has been hard at work making

559
00:26:53,480 --> 00:26:56,320
Speaker 11: some changes well in advance of Apec coming to town.

560
00:26:56,359 --> 00:26:59,400
Speaker 11: Apec coming to town, just like any city when they're

561
00:26:59,400 --> 00:27:02,280
Speaker 11: going to have a glow spotlight on them, are going

562
00:27:02,320 --> 00:27:07,160
Speaker 11: to go through some you know, more extreme measures.

563
00:27:06,720 --> 00:27:08,760
Speaker 12: To clean up the city. And I think that's only

564
00:27:08,760 --> 00:27:10,200
Speaker 12: a good thing for San Francisco.

565
00:27:10,920 --> 00:27:13,560
Speaker 2: Everyone loves a bit of chadenfreude. Everyone loves to sit

566
00:27:13,600 --> 00:27:16,959
Speaker 2: in one city and bad mouth another. And I am

567
00:27:17,000 --> 00:27:19,119
Speaker 2: interested though. It was but a few months ago that

568
00:27:19,160 --> 00:27:21,560
Speaker 2: I was in San Francisco walking across that very street

569
00:27:21,560 --> 00:27:23,240
Speaker 2: that we just saw in the imbook Idea, and I'm

570
00:27:23,240 --> 00:27:27,720
Speaker 2: afraid there were still so many signs of such sadness.

571
00:27:27,760 --> 00:27:30,000
Speaker 2: People still very much living on the street, a lot

572
00:27:30,040 --> 00:27:32,879
Speaker 2: of what people call tense city. How is there a

573
00:27:33,000 --> 00:27:36,439
Speaker 2: long term, ultimate fix to that, and how do we

574
00:27:36,520 --> 00:27:39,520
Speaker 2: start to see some of the areas of focus really

575
00:27:39,520 --> 00:27:42,320
Speaker 2: feel rejuvenated, not only on Market Street, but more broadly

576
00:27:42,359 --> 00:27:44,400
Speaker 2: when it comes to art, to culture and and really

577
00:27:44,440 --> 00:27:45,480
Speaker 2: what makes the city thrive.

578
00:27:46,760 --> 00:27:49,760
Speaker 11: Yeah, absolutely, I think that when we're talking about downtown,

579
00:27:49,800 --> 00:27:52,400
Speaker 11: the financial district in particular, you know, it's really been

580
00:27:52,480 --> 00:27:56,120
Speaker 11: a single use district. It's been commercial office and catering

581
00:27:56,119 --> 00:27:58,520
Speaker 11: to people from the nine to five. So I think

582
00:27:58,560 --> 00:28:00,440
Speaker 11: the first step there and this is what our analysts

583
00:28:00,440 --> 00:28:03,560
Speaker 11: found as we really need to think about diversifying this area,

584
00:28:03,640 --> 00:28:07,320
Speaker 11: which you know, bringing in residential is you know, one

585
00:28:07,359 --> 00:28:12,679
Speaker 11: piece of that puzzle. But conversion isn't a silver bullet.

586
00:28:12,720 --> 00:28:14,960
Speaker 11: All of these buildings can't be turned to housing. But

587
00:28:15,160 --> 00:28:17,600
Speaker 11: you know it will help not only with our housing crisis,

588
00:28:17,600 --> 00:28:21,080
Speaker 11: but to diversify the area in downtown. But you can't

589
00:28:21,160 --> 00:28:23,720
Speaker 11: just fill a bunch of these office spaces with the

590
00:28:23,720 --> 00:28:24,440
Speaker 11: housing units.

591
00:28:24,600 --> 00:28:27,360
Speaker 3: Call of a day, Well, NATSI I just reflect.

592
00:28:27,359 --> 00:28:30,040
Speaker 4: Look, I am a resident of San Francisco and I

593
00:28:30,080 --> 00:28:33,119
Speaker 4: work in San Francisco, and you know a lot of

594
00:28:33,119 --> 00:28:36,520
Speaker 4: the doom loop discussion that is not universally the experience

595
00:28:36,560 --> 00:28:38,400
Speaker 4: that everyone lives here. Right, there's a lot that's good

596
00:28:38,400 --> 00:28:40,480
Speaker 4: about the city. But you just made a point and

597
00:28:40,600 --> 00:28:43,719
Speaker 4: diversify and the navy that you hood you're talking about

598
00:28:44,080 --> 00:28:47,720
Speaker 4: Uber salesforce X, the company formerly known as Twitter, it

599
00:28:47,840 --> 00:28:50,040
Speaker 4: is still largely tech or it's vacant.

600
00:28:50,720 --> 00:28:52,000
Speaker 3: Is AI changing that?

601
00:28:52,440 --> 00:28:54,240
Speaker 11: You know, I'm not an expert on what's going to

602
00:28:54,280 --> 00:28:56,160
Speaker 11: happen with AI. I know there's a lot of hope

603
00:28:56,200 --> 00:28:59,440
Speaker 11: for AI there is still You know, San Francisco has

604
00:28:59,440 --> 00:29:02,920
Speaker 11: been the text center of the world for a number

605
00:29:02,920 --> 00:29:03,240
Speaker 11: of years.

606
00:29:03,280 --> 00:29:04,440
Speaker 12: I don't think that's going to change.

607
00:29:04,480 --> 00:29:06,560
Speaker 11: I think that AI will likely be interested in coming

608
00:29:06,600 --> 00:29:09,800
Speaker 11: to San Francisco, but I also think other things and

609
00:29:09,840 --> 00:29:13,200
Speaker 11: other types of businesses need to come to San Francisco,

610
00:29:13,240 --> 00:29:15,160
Speaker 11: and the city is working on figuring out how to

611
00:29:15,200 --> 00:29:19,120
Speaker 11: incentivize those other types of businesses to be interested as well.

612
00:29:19,320 --> 00:29:21,520
Speaker 12: And it's not only these big companies.

613
00:29:21,560 --> 00:29:25,160
Speaker 11: We're also talking about San Francisco locally made businesses to

614
00:29:25,240 --> 00:29:28,600
Speaker 11: support the arts and culture, as you said earlier, and

615
00:29:28,680 --> 00:29:29,640
Speaker 11: bring them to downtown.

616
00:29:29,920 --> 00:29:33,080
Speaker 4: All right, Natalie Sandobal, executive director of the Urban Land

617
00:29:33,120 --> 00:29:35,080
Speaker 4: Institute San Francisco, Thank you so much.

618
00:29:35,360 --> 00:29:36,480
Speaker 3: Let's stick with this city.

619
00:29:36,560 --> 00:29:41,560
Speaker 4: Another fixture of San Francisco's landscape is all has been robotaxis,

620
00:29:41,600 --> 00:29:43,800
Speaker 4: and until recently it was the only city in the

621
00:29:43,840 --> 00:29:47,120
Speaker 4: world that had two robotaxis operate in twenty four to

622
00:29:47,120 --> 00:29:50,320
Speaker 4: seven and charging a fair to the public. But some

623
00:29:50,360 --> 00:29:54,720
Speaker 4: issues led to cruises permit being removed, and now hundreds

624
00:29:54,760 --> 00:29:58,480
Speaker 4: of emails between Cruz and the city's police department give

625
00:29:58,560 --> 00:30:01,560
Speaker 4: us a window into the relation ship between those two groups,

626
00:30:01,680 --> 00:30:05,200
Speaker 4: ranging from contentious to the collaborative. I want to bring

627
00:30:05,200 --> 00:30:07,680
Speaker 4: in Junior Love who, Julia Love, who did such a

628
00:30:07,720 --> 00:30:10,880
Speaker 4: deep dive on these documents and emails?

629
00:30:11,080 --> 00:30:12,840
Speaker 3: What have you found out?

630
00:30:13,280 --> 00:30:17,120
Speaker 13: Well, this was really a fascinating glimpse into the relationship

631
00:30:17,160 --> 00:30:20,160
Speaker 13: between CRUSE and the San Francisco Police Department at a

632
00:30:20,200 --> 00:30:24,680
Speaker 13: really pivotal time for the service, and SFPD raised some concerns.

633
00:30:24,760 --> 00:30:31,520
Speaker 13: There were multiple times when the vehicles disrupted crime scenes, barrelings,

634
00:30:31,600 --> 00:30:35,560
Speaker 13: or caution tape. There were also and there was also

635
00:30:35,600 --> 00:30:38,240
Speaker 13: an incident in which First Lady Jill Biden was visiting

636
00:30:38,280 --> 00:30:41,680
Speaker 13: the city and the vehicles got confused by the motorcade

637
00:30:41,760 --> 00:30:46,000
Speaker 13: and disrupted its path. So some new windows into the

638
00:30:46,240 --> 00:30:48,840
Speaker 13: bumps on the road that we have been seeing for

639
00:30:48,880 --> 00:30:53,360
Speaker 13: some time now with CRUSE. There were also some signs

640
00:30:53,400 --> 00:30:57,120
Speaker 13: though that the police does have an interest in the

641
00:30:57,240 --> 00:31:01,920
Speaker 13: data that CRUZ obtains. They wrote to CRUZ multiple times

642
00:31:02,520 --> 00:31:06,240
Speaker 13: expressing an interest in obtaining its footage after the vehicles

643
00:31:06,240 --> 00:31:11,440
Speaker 13: were spotted near crime scenes, and CRUZ did appear to

644
00:31:11,480 --> 00:31:15,320
Speaker 13: be upholding its practice of making the officers get warrants.

645
00:31:15,400 --> 00:31:18,080
Speaker 13: But I think it just understores that this is a

646
00:31:18,160 --> 00:31:20,640
Speaker 13: multifaceted relationship it is.

647
00:31:20,560 --> 00:31:23,680
Speaker 2: And one that well the police also have with alphabets

648
00:31:23,720 --> 00:31:27,640
Speaker 2: weimo and I'm sure there are plenty of back and

649
00:31:27,680 --> 00:31:31,760
Speaker 2: forth and sometimes celebration le relationships and other other times

650
00:31:31,840 --> 00:31:36,120
Speaker 2: more difficult intense relationships. Ultimately, does this shine a light

651
00:31:36,200 --> 00:31:39,000
Speaker 2: on any way in which we'll see Cruz back in

652
00:31:39,040 --> 00:31:41,920
Speaker 2: San Francisco, They remain in Phoenix or amazing in Austin.

653
00:31:42,280 --> 00:31:44,400
Speaker 2: Is it going to come back to the city, Well,

654
00:31:44,440 --> 00:31:44,840
Speaker 2: I think it.

655
00:31:45,040 --> 00:31:50,120
Speaker 13: The emails show just how hard Cruse worked to maintain

656
00:31:50,320 --> 00:31:55,560
Speaker 13: a good relationship with SFPD despite these troubles that arose,

657
00:31:56,040 --> 00:31:59,400
Speaker 13: and experts tell me that that relationship really will be

658
00:31:59,480 --> 00:32:04,480
Speaker 13: the key to Cruz returning to San Francisco. SFPD won't

659
00:32:04,480 --> 00:32:07,440
Speaker 13: be the one that ultimately restores its PERI meant to

660
00:32:07,520 --> 00:32:11,240
Speaker 13: operate in the state, But police really do help shape

661
00:32:11,920 --> 00:32:16,520
Speaker 13: locals of view of a company, and so if Cruz

662
00:32:16,680 --> 00:32:20,240
Speaker 13: can earn the trust of SFPD, then that is a

663
00:32:20,280 --> 00:32:24,000
Speaker 13: step toward earning the trust of everyday San Franciscans.

664
00:32:24,880 --> 00:32:27,360
Speaker 2: And of course, Ed you were just with the mayor

665
00:32:27,960 --> 00:32:29,960
Speaker 2: London Reed talking about how they have to work to

666
00:32:30,040 --> 00:32:33,720
Speaker 2: regain trust, so notable that that is certainly an effort

667
00:32:33,760 --> 00:32:36,239
Speaker 2: they are on with the city Julia Love, thank you

668
00:32:36,280 --> 00:32:39,120
Speaker 2: so much for that reporting. Meanwhile, coming up, but we're

669
00:32:39,120 --> 00:32:42,040
Speaker 2: going to take a look at an aviation company archer

670
00:32:42,160 --> 00:32:45,040
Speaker 2: from self driving cars. Now we're looking at getting in

671
00:32:45,080 --> 00:32:47,400
Speaker 2: the air and how the CFO is doing finances through

672
00:32:47,400 --> 00:32:50,280
Speaker 2: the pre revenue phase. It's coming from blumas Leita's chief

673
00:32:50,320 --> 00:32:53,440
Speaker 2: financial officer. Episode coming up tonight, gust who's in it

674
00:32:53,480 --> 00:33:15,360
Speaker 2: as well. This is Bluemotechnology time now for talking tech.

675
00:33:15,400 --> 00:33:17,880
Speaker 2: First up, open Ai has had to press pause on

676
00:33:17,920 --> 00:33:21,680
Speaker 2: accepting new users for its paid chatchpt plus service due

677
00:33:21,720 --> 00:33:24,800
Speaker 2: to overwhelming demand. A scording to the CEO, Sam Altman,

678
00:33:24,840 --> 00:33:27,200
Speaker 2: who's put in on a post on Tuesday to marsw

679
00:33:27,240 --> 00:33:29,480
Speaker 2: open aied tools and services rose after the company, of

680
00:33:29,480 --> 00:33:32,800
Speaker 2: course introduced new features and upgrades as first ever Developer

681
00:33:32,880 --> 00:33:37,320
Speaker 2: Day that was last week and from APEC to the

682
00:33:37,360 --> 00:33:41,480
Speaker 2: Singapore Fintech Festival. In just well an hour after delivering

683
00:33:41,480 --> 00:33:45,160
Speaker 2: a speech in California, the Philippine President Ferdinand Macross Junior,

684
00:33:45,480 --> 00:33:49,440
Speaker 2: appeared halfway across the globe in Singapore using a hologram

685
00:33:49,680 --> 00:33:51,920
Speaker 2: that takes me back. He was the first of all's

686
00:33:51,960 --> 00:33:55,920
Speaker 2: only speaker to tap into that technology. Plus Byte Dance

687
00:33:56,080 --> 00:33:59,960
Speaker 2: is considering selling Shanghai Moonton technology. It's the gaming studio

688
00:34:00,080 --> 00:34:02,840
Speaker 2: behind popular game like mobile Legends. Bang Bang So also

689
00:34:02,880 --> 00:34:05,440
Speaker 2: say Bike Dancer Quad Moonton in twenty twenty one on

690
00:34:05,480 --> 00:34:08,280
Speaker 2: a valuation of about four billion dollars, but is now

691
00:34:08,480 --> 00:34:10,920
Speaker 2: looking to streamline its operation focus more on the core

692
00:34:11,000 --> 00:34:14,600
Speaker 2: businesses and of course e commerce. Meanwhile, ed, well, you've

693
00:34:14,600 --> 00:34:16,239
Speaker 2: got something on the future technology too.

694
00:34:16,960 --> 00:34:19,600
Speaker 4: Yeah, I've kind of been up in the air sort of. Archer,

695
00:34:19,880 --> 00:34:22,600
Speaker 4: the Eve Toll Company is getting ready to bring its

696
00:34:22,600 --> 00:34:25,000
Speaker 4: aircraft to market in twenty twenty five. That's when the

697
00:34:25,120 --> 00:34:28,120
Speaker 4: FAA has said it will begin to allow limited operation

698
00:34:28,280 --> 00:34:31,800
Speaker 4: of those vehicles as air taxis. In the latest episode

699
00:34:31,800 --> 00:34:34,400
Speaker 4: of Bloomberg's Chief Future Officer, I took a look at

700
00:34:34,400 --> 00:34:37,120
Speaker 4: their air taxi called Midnight and a chat with Archer's

701
00:34:37,120 --> 00:34:41,320
Speaker 4: CFO Mark Mesler, chief Commercial Officer Nikhil Goel, and CEO

702
00:34:41,360 --> 00:34:42,760
Speaker 4: and founder Adam Goldsein.

703
00:34:42,840 --> 00:34:47,680
Speaker 3: Have a listen to this all right, this is it.

704
00:34:48,160 --> 00:34:50,080
Speaker 3: This is inside Midnight Welcome.

705
00:34:50,320 --> 00:34:54,879
Speaker 4: The design is four passenger seats front road, back row

706
00:34:55,440 --> 00:34:57,040
Speaker 4: and one pilot.

707
00:34:57,440 --> 00:34:58,680
Speaker 3: How after all.

708
00:34:58,560 --> 00:35:03,920
Speaker 4: This time did you arrive that configuration four passengers one pilot.

709
00:35:04,120 --> 00:35:05,600
Speaker 3: Our goal is to be the Uber Vier.

710
00:35:05,680 --> 00:35:07,759
Speaker 14: But when I was at Uber, we took all the

711
00:35:07,840 --> 00:35:10,440
Speaker 14: data of Uber trips going back and forth all over

712
00:35:10,440 --> 00:35:12,839
Speaker 14: the world, and what we figured out was that four

713
00:35:12,880 --> 00:35:15,959
Speaker 14: passengers was the optimal configuration to do one thing, which

714
00:35:16,000 --> 00:35:18,280
Speaker 14: is lower the cost per passenger for these trips.

715
00:35:18,400 --> 00:35:20,520
Speaker 15: So we understand what the cost of the aircraft is,

716
00:35:20,680 --> 00:35:22,719
Speaker 15: we understand what the cost of the pilot is, we

717
00:35:22,800 --> 00:35:25,520
Speaker 15: understand what the cost of the repair and maintenance of

718
00:35:25,560 --> 00:35:28,320
Speaker 15: this is, we understand battery costs. All of that feeds

719
00:35:28,320 --> 00:35:30,920
Speaker 15: into our unit level economic model and it does show

720
00:35:30,920 --> 00:35:34,640
Speaker 15: that pricing ad ride sharing prices allows us to make

721
00:35:35,360 --> 00:35:36,640
Speaker 15: an economic profit on the.

722
00:35:38,120 --> 00:35:42,000
Speaker 16: Back at Archer headquarters, I actually got to fly midnight. Okay,

723
00:35:42,200 --> 00:35:46,720
Speaker 16: not for real virtually in the company's E simulator. Training

724
00:35:46,760 --> 00:35:50,000
Speaker 16: pilots is another hurdle the EV tool industry will have

725
00:35:50,120 --> 00:35:53,400
Speaker 16: to clear how much burden are you going to take

726
00:35:53,480 --> 00:35:54,800
Speaker 16: in the training process?

727
00:35:55,320 --> 00:35:57,480
Speaker 3: You know, why does that fall to Archer? And if

728
00:35:57,480 --> 00:35:58,960
Speaker 3: it does, what does it look like for you?

729
00:35:59,000 --> 00:36:02,200
Speaker 15: Guys think we are going to be training our own pilots.

730
00:36:02,280 --> 00:36:05,040
Speaker 15: This is our own technology. I think eventually as we

731
00:36:05,080 --> 00:36:08,160
Speaker 15: look to scale and we're always talking about unlocking scale.

732
00:36:08,440 --> 00:36:11,080
Speaker 15: We could look to partners to help us do some

733
00:36:11,160 --> 00:36:13,680
Speaker 15: of the training early on. Pilot training will be a

734
00:36:13,680 --> 00:36:16,640
Speaker 15: critical part of our own operations.

735
00:36:16,800 --> 00:36:19,640
Speaker 17: The simulators really help you get a sense for how

736
00:36:19,680 --> 00:36:23,120
Speaker 17: easy the vehicles are to fly. In fact, what we

737
00:36:23,280 --> 00:36:28,880
Speaker 17: found is people with less flying experience are actually better

738
00:36:28,960 --> 00:36:31,560
Speaker 17: at flying these planes because you don't have to unlearn

739
00:36:31,920 --> 00:36:32,439
Speaker 17: as much.

740
00:36:32,520 --> 00:36:33,279
Speaker 3: Does that include me?

741
00:36:33,880 --> 00:36:34,560
Speaker 6: That includes you?

742
00:36:34,760 --> 00:36:37,879
Speaker 17: So within five minutes you were able to take off,

743
00:36:38,800 --> 00:36:42,800
Speaker 17: fly around the island of Manhattan and land successfully. And

744
00:36:42,880 --> 00:36:45,000
Speaker 17: that's your first time you've ever been a simulator and

745
00:36:45,040 --> 00:36:46,480
Speaker 17: that's pretty incredible.

746
00:36:48,719 --> 00:36:51,040
Speaker 4: And I landed it safely. You can catch the full

747
00:36:51,080 --> 00:36:54,000
Speaker 4: episode A Chief Future Opposite tonight at nine point thirty

748
00:36:54,040 --> 00:36:55,600
Speaker 4: pm East in time, a lot of.

749
00:36:55,520 --> 00:37:05,680
Speaker 2: Fun investment managers are releasing, of course, they're so called

750
00:37:05,680 --> 00:37:08,800
Speaker 2: thirteen F filings for the third quarter as the quad

751
00:37:08,840 --> 00:37:10,920
Speaker 2: by the SEC, and the findings give us kind of

752
00:37:10,960 --> 00:37:13,200
Speaker 2: a taste of view into what these managers have been

753
00:37:13,200 --> 00:37:16,040
Speaker 2: buying or they've been selling. Tuning us now as Hemapalma

754
00:37:16,040 --> 00:37:18,120
Speaker 2: bunting Berg News and Porter covering hedge funds, who's really

755
00:37:18,160 --> 00:37:21,680
Speaker 2: given us a beautiful roundup of Ultimately where the bets

756
00:37:21,680 --> 00:37:24,799
Speaker 2: were placed. Its backward looking, but some notable standouts.

757
00:37:24,880 --> 00:37:27,600
Speaker 18: Yes, So I would say one of the standouts is Meta.

758
00:37:28,040 --> 00:37:30,640
Speaker 18: We've seen kind of across the board buying. If we

759
00:37:30,680 --> 00:37:33,560
Speaker 18: look at the Tiger cubs, which are typically the hedge

760
00:37:33,560 --> 00:37:36,439
Speaker 18: funds that are focusing on the tech stocks and quite

761
00:37:36,520 --> 00:37:38,719
Speaker 18: keen on the rotation in that space. So if we

762
00:37:38,760 --> 00:37:41,799
Speaker 18: look at loan Pine Capital, they started a brand new

763
00:37:41,800 --> 00:37:46,200
Speaker 18: position in Meta and it's actually now their largest long

764
00:37:46,280 --> 00:37:50,000
Speaker 18: holding the firm. They bought about two point seven million

765
00:37:50,040 --> 00:37:53,239
Speaker 18: shares at about eight hundred million dollar valuation at the

766
00:37:53,320 --> 00:37:56,800
Speaker 18: end of the last quarter, so they took a pretty chunky,

767
00:37:56,840 --> 00:37:59,240
Speaker 18: sizable steak. If we look at some of the other funds,

768
00:37:59,239 --> 00:38:03,600
Speaker 18: Tiger Global, Viking, CO two, they all increase their steak

769
00:38:03,600 --> 00:38:06,680
Speaker 18: in Meta. It's now Tiger Global's biggest holding, and it's

770
00:38:06,760 --> 00:38:08,200
Speaker 18: CO two's second biggest holding.

771
00:38:09,000 --> 00:38:12,200
Speaker 4: It's it's the most wonderful time of the year thirteen

772
00:38:12,239 --> 00:38:15,719
Speaker 4: out filings for so many But on the other side

773
00:38:15,760 --> 00:38:17,640
Speaker 4: of the table you just mentioned them, Tiger Global.

774
00:38:17,960 --> 00:38:19,480
Speaker 3: That's kind of a name that we jump on. What

775
00:38:19,520 --> 00:38:19,960
Speaker 3: do we learn.

776
00:38:20,440 --> 00:38:24,120
Speaker 18: Yeah, so Tiger Global, they increase their steak in see

777
00:38:24,160 --> 00:38:27,160
Speaker 18: the Internet consumer company. They bought a ten more of

778
00:38:27,200 --> 00:38:29,920
Speaker 18: that stock, up to about eleven million shares of it,

779
00:38:30,320 --> 00:38:33,279
Speaker 18: and it's a company that's really struggled. Their stock price

780
00:38:33,280 --> 00:38:36,040
Speaker 18: has struggled over the past quarter, so it looks like

781
00:38:36,080 --> 00:38:38,400
Speaker 18: the company may have the firm may have bought the

782
00:38:38,440 --> 00:38:41,759
Speaker 18: dip on that believing in the projections of how that

783
00:38:41,800 --> 00:38:45,200
Speaker 18: company may look, but taking advantage of the share price.

784
00:38:45,520 --> 00:38:48,719
Speaker 18: Another interesting thing with Tiger Global is you'll remember that

785
00:38:48,760 --> 00:38:51,160
Speaker 18: they've been a long term investor in JDA dot Com.

786
00:38:51,200 --> 00:38:52,360
Speaker 2: They got into JDA.

787
00:38:52,120 --> 00:38:56,200
Speaker 18: Dot com well before it went public, and they've cut

788
00:38:56,239 --> 00:38:59,279
Speaker 18: their steak in the shares of JDA dot com by

789
00:38:59,320 --> 00:39:02,000
Speaker 18: about half, even more than half, and that bills on

790
00:39:02,040 --> 00:39:05,440
Speaker 18: them cutting even the quarter before last, So we do

791
00:39:05,600 --> 00:39:09,040
Speaker 18: see a bit of a trend there reducing that stake

792
00:39:09,239 --> 00:39:10,360
Speaker 18: even though buying more c.

793
00:39:11,280 --> 00:39:13,279
Speaker 2: Interesting as you see, it's not performed well all yet

794
00:39:13,280 --> 00:39:15,920
Speaker 2: to day, but JD dot Com popping after its earnings,

795
00:39:15,920 --> 00:39:18,520
Speaker 2: so maybe they want to be longer a little bit

796
00:39:18,520 --> 00:39:21,120
Speaker 2: at the moment at least, or real being shorter on

797
00:39:21,160 --> 00:39:24,360
Speaker 2: the day. What about those people generally sold out of

798
00:39:24,520 --> 00:39:27,280
Speaker 2: was jdcolm the theme for example? What were the other names?

799
00:39:27,800 --> 00:39:30,080
Speaker 18: So we saw some rotations If we look at Viking,

800
00:39:30,120 --> 00:39:34,080
Speaker 18: they sold about thirteen stocks entirely Netflix and Ali Baba,

801
00:39:34,160 --> 00:39:39,320
Speaker 18: but then also bought fifteen others. With Viking, they bought Workday, Amazon,

802
00:39:39,320 --> 00:39:42,840
Speaker 18: and United Parcel. Those are now their top three biggest holdings.

803
00:39:43,239 --> 00:39:46,520
Speaker 18: So you do see a lot of rotations across the portfolio.

804
00:39:46,680 --> 00:39:51,160
Speaker 18: Sometimes you see aggregated buying and like a meta, we

805
00:39:51,200 --> 00:39:53,040
Speaker 18: haven't seen a whole lot of other selling in JDA

806
00:39:53,040 --> 00:39:57,040
Speaker 18: dot com. But each fund sort of has their own

807
00:39:57,040 --> 00:40:00,440
Speaker 18: specific way that they look at the way that they

808
00:40:00,520 --> 00:40:01,160
Speaker 18: approach tech.

809
00:40:01,920 --> 00:40:04,719
Speaker 4: Wow, all right, bloom Oh, I'm sorry, Carry I'll jump in.

810
00:40:04,719 --> 00:40:06,839
Speaker 4: But you know, thirty and f's you get a sense

811
00:40:06,880 --> 00:40:09,000
Speaker 4: of what do people like or not like on a

812
00:40:09,040 --> 00:40:11,439
Speaker 4: long term basis. And these are the guys deploying big

813
00:40:11,480 --> 00:40:13,640
Speaker 4: sums of capital. Thank you so much for the Bloomberg's

814
00:40:13,800 --> 00:40:16,200
Speaker 4: Heema Palmer has come back to San Francisco. The commercial

815
00:40:16,239 --> 00:40:19,360
Speaker 4: real estate market is having a moment. While it's struggled

816
00:40:19,360 --> 00:40:22,239
Speaker 4: more than any other US major city to recover from

817
00:40:22,239 --> 00:40:25,959
Speaker 4: the pandemic, AI's startups have been breathing new life into

818
00:40:25,960 --> 00:40:26,600
Speaker 4: the city's market.

819
00:40:26,680 --> 00:40:29,000
Speaker 3: Let's go to Bloombergs preor and who's been writing about

820
00:40:29,000 --> 00:40:29,800
Speaker 3: this this morning.

821
00:40:30,280 --> 00:40:32,120
Speaker 4: What does the data tell us, Like, we know that

822
00:40:32,239 --> 00:40:35,759
Speaker 4: AI is a thing, new companies being founded, but from

823
00:40:35,760 --> 00:40:38,359
Speaker 4: a square footage perspective, something real is happening here.

824
00:40:39,680 --> 00:40:42,600
Speaker 19: AI companies have added more than a million square feet

825
00:40:42,680 --> 00:40:45,760
Speaker 19: of office space this year, and real estate agents telling

826
00:40:45,800 --> 00:40:48,319
Speaker 19: me are telling me that every day they're touring when

827
00:40:48,360 --> 00:40:51,400
Speaker 19: different companies looking at more and more office space. Clearly,

828
00:40:51,440 --> 00:40:54,560
Speaker 19: in this industry, in the sub industry, within tech, people

829
00:40:54,600 --> 00:40:57,960
Speaker 19: feel a need to be in person at least several

830
00:40:58,000 --> 00:40:59,560
Speaker 19: days a week, if not most of the days of

831
00:40:59,560 --> 00:40:59,920
Speaker 19: the week.

832
00:41:00,200 --> 00:41:02,520
Speaker 2: And some of the names, like was it anthropic taking

833
00:41:02,560 --> 00:41:06,839
Speaker 2: over Saxony Company h Q, it would feel like we've

834
00:41:06,880 --> 00:41:11,160
Speaker 2: got other key AI names just building out secondary headquarters

835
00:41:11,200 --> 00:41:14,040
Speaker 2: in SS even if it's not their first. But what

836
00:41:14,120 --> 00:41:16,640
Speaker 2: about turning space to be fit for them? We were

837
00:41:16,640 --> 00:41:18,839
Speaker 2: hearing what Ed was having a conversation with the mayor

838
00:41:18,880 --> 00:41:21,720
Speaker 2: of San Francisco about making more space for AI labs.

839
00:41:23,080 --> 00:41:25,120
Speaker 19: That's right, And what's interesting is actually a lot of

840
00:41:25,120 --> 00:41:29,040
Speaker 19: these AI companies are not clustering downtown necessarily, or they're

841
00:41:29,080 --> 00:41:33,520
Speaker 19: not necessarily attached to being specifically downtown. So open AI

842
00:41:33,760 --> 00:41:37,480
Speaker 19: is in the Mission District and a lot of companies

843
00:41:37,520 --> 00:41:40,120
Speaker 19: have sprouted up kind of near their office in the Mission.

844
00:41:40,400 --> 00:41:44,000
Speaker 19: There's a part of town that's getting termed Area AI.

845
00:41:44,160 --> 00:41:47,120
Speaker 19: It's sort of the eastern part of the Mission, a

846
00:41:47,120 --> 00:41:50,439
Speaker 19: little bit of Soma and Petrero Hill, and that part

847
00:41:50,480 --> 00:41:52,879
Speaker 19: of town is actually seeing a number of offices crop

848
00:41:53,000 --> 00:41:55,000
Speaker 19: up and a number of companies sort of clustering there.

849
00:41:55,120 --> 00:41:57,319
Speaker 19: Maybe it's the Open AI effect, right, wanting to be

850
00:41:57,360 --> 00:41:59,360
Speaker 19: close to the center of gravity in this industry.

851
00:42:00,400 --> 00:42:02,520
Speaker 2: And it's a great story. People should go read it.

852
00:42:02,560 --> 00:42:05,080
Speaker 2: We thank you so much. Meanwhile, look that does it.

853
00:42:05,239 --> 00:42:07,320
Speaker 2: From this edition of Bluebog Technology.

854
00:42:07,719 --> 00:42:10,239
Speaker 4: Go out tell everyone about the podcast. Wherever you get

855
00:42:10,280 --> 00:42:14,000
Speaker 4: yours Bloomberg, Apple, Spotify from SF in New York.

856
00:42:14,320 --> 00:42:18,600
Speaker 3: This is Bloomberg Technology.