1 00:00:01,400 --> 00:00:05,720 Speaker 1: From Marhart where Innovation, Money and Power Collie in Silicon 2 00:00:05,800 --> 00:00:06,680 Speaker 1: Vallet NBN. 3 00:00:07,040 --> 00:00:11,080 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Loudlove. 4 00:00:24,560 --> 00:00:26,880 Speaker 3: I'm Caroline Heide a Bloomberg's WORLDEA quarters in New York, 5 00:00:27,280 --> 00:00:29,040 Speaker 3: and I'm Ed Ludlow in San Francisco. 6 00:00:29,120 --> 00:00:31,280 Speaker 4: This is Bloomberg Technology coming up. 7 00:00:31,360 --> 00:00:34,680 Speaker 3: The fallout continues for Elon Musk after the billionaire endorse 8 00:00:34,720 --> 00:00:37,840 Speaker 3: an anti semitic post on his social media platform. Will 9 00:00:37,840 --> 00:00:40,680 Speaker 3: discuss what it means for his businesses, and. 10 00:00:40,600 --> 00:00:44,640 Speaker 5: We'll return to APEX as Chinese President Jijingping finishes his 11 00:00:44,680 --> 00:00:47,280 Speaker 5: first visits in the US in six years on a 12 00:00:47,360 --> 00:00:49,440 Speaker 5: high note, what does it mean for US? 13 00:00:49,560 --> 00:00:51,560 Speaker 4: Kurds on technology to China? 14 00:00:51,840 --> 00:00:53,080 Speaker 6: And then there has. 15 00:00:52,920 --> 00:00:57,080 Speaker 3: Been some Tesla investors criticizing the Elon Musk post, of course, 16 00:00:57,200 --> 00:01:01,440 Speaker 3: one that seemingly is endorsing anti Semitic views. More advertisers, though, 17 00:01:01,520 --> 00:01:04,319 Speaker 3: are also fleeing his social media platform X. The European 18 00:01:04,360 --> 00:01:07,880 Speaker 3: Commission joined IBM in announcing it will stop advertising on 19 00:01:08,080 --> 00:01:10,120 Speaker 3: X after Musk agreed with a post that said the 20 00:01:10,160 --> 00:01:12,880 Speaker 3: Jewish people hold a dialectical hatred. 21 00:01:12,680 --> 00:01:13,399 Speaker 6: Of white people. 22 00:01:13,680 --> 00:01:13,800 Speaker 4: Now. 23 00:01:13,880 --> 00:01:17,000 Speaker 3: Musk responded by saying, you have said the actual truth. 24 00:01:17,800 --> 00:01:18,839 Speaker 4: That was Thursday. 25 00:01:19,120 --> 00:01:22,520 Speaker 5: Meanwhile, this Friday morning, the White House is addressing Elon 26 00:01:22,600 --> 00:01:26,480 Speaker 5: musk comments saying, quote, we condemn this abhorrent promotion of 27 00:01:26,520 --> 00:01:30,399 Speaker 5: antisemitic and racist hate in the strongest terms, which runs 28 00:01:30,440 --> 00:01:33,560 Speaker 5: against our core values as Americans. Joining us now from 29 00:01:33,640 --> 00:01:37,000 Speaker 5: DC Bloomberg's a Kayla Gardener, Kayla give us the rest 30 00:01:37,040 --> 00:01:39,520 Speaker 5: of the detail on that White House response to Elon 31 00:01:39,600 --> 00:01:40,920 Speaker 5: Musk and Elon Musk's post. 32 00:01:41,120 --> 00:01:44,119 Speaker 7: Yeah, the White House has been pretty adamant about condemning 33 00:01:44,160 --> 00:01:47,760 Speaker 7: antisemitism pretty much ever since the President took office. They 34 00:01:47,800 --> 00:01:51,360 Speaker 7: have a national strategy to counter antisemitism, and this has 35 00:01:51,400 --> 00:01:53,800 Speaker 7: been a major focus of the Second Gentleman, who was 36 00:01:53,840 --> 00:01:57,680 Speaker 7: of course the first Jewish spouse of a Vice president. 37 00:01:58,000 --> 00:02:00,360 Speaker 7: And as you mentioned, this comes on top of yukes 38 00:02:00,400 --> 00:02:03,760 Speaker 7: from the European Commission from IBM, which both announced they 39 00:02:03,760 --> 00:02:06,800 Speaker 7: would be pulling advertising from the platform. But I think 40 00:02:06,800 --> 00:02:09,160 Speaker 7: the best way to think about this is a broader 41 00:02:09,200 --> 00:02:12,760 Speaker 7: and much more complicated relationship between the President and Elon Musk. 42 00:02:13,000 --> 00:02:15,359 Speaker 7: Elon Musk has been very critical of Biden. He says 43 00:02:15,360 --> 00:02:17,520 Speaker 7: he will not support him. In twenty twenty four, he 44 00:02:17,600 --> 00:02:20,360 Speaker 7: was also unhappy when Tesla was not invited to an 45 00:02:20,400 --> 00:02:24,280 Speaker 7: event for EB companies earlier this year, and so that's 46 00:02:24,320 --> 00:02:26,520 Speaker 7: definitely something to think about here. And at the same time, 47 00:02:26,680 --> 00:02:30,320 Speaker 7: the government also has contracts with SpaceX. It also applauded 48 00:02:30,400 --> 00:02:33,680 Speaker 7: Elon Musk's decision to open up their charging infrastructure to 49 00:02:33,840 --> 00:02:36,600 Speaker 7: other companies. But I do think it was the timing 50 00:02:36,639 --> 00:02:39,519 Speaker 7: of these comments, of course, amid the Israel Hamas War 51 00:02:39,600 --> 00:02:41,840 Speaker 7: that ultimately caused the White House to put out these 52 00:02:41,840 --> 00:02:44,920 Speaker 7: statements because there has been such an increase in incidents, 53 00:02:45,040 --> 00:02:47,880 Speaker 7: particularly against the Jewish community, they felt as though this 54 00:02:48,080 --> 00:02:49,840 Speaker 7: was the time to make such a condemnation. 55 00:02:50,400 --> 00:02:53,119 Speaker 3: Okayla God, we thank you so much for that really 56 00:02:53,200 --> 00:02:56,920 Speaker 3: important context coming from Washington. That's bringing more context coming 57 00:02:56,919 --> 00:02:59,480 Speaker 3: from an investivase now. Kristin Hall is founder and CEO 58 00:02:59,520 --> 00:03:02,360 Speaker 3: of NIA Capital. It's a social impact fund and it 59 00:03:02,400 --> 00:03:04,040 Speaker 3: is about two hundred and eight to two thousand dollars 60 00:03:04,080 --> 00:03:07,280 Speaker 3: of Tesla stock as of mid year. It's waged pressure 61 00:03:07,320 --> 00:03:11,880 Speaker 3: campaigns against the company for years, including via shareholder resolutions. 62 00:03:12,200 --> 00:03:14,760 Speaker 3: You put out a response to Mask's comments saying that 63 00:03:14,800 --> 00:03:19,000 Speaker 3: you're appalled by Elomusk's recent post on x Kristin, talk 64 00:03:19,120 --> 00:03:24,640 Speaker 3: us through what you think. Ultimately, the investor viewpoint is 65 00:03:24,639 --> 00:03:24,880 Speaker 3: at the. 66 00:03:24,880 --> 00:03:27,600 Speaker 8: Moment, oh, this is so complicated. Thank you for having 67 00:03:27,639 --> 00:03:31,680 Speaker 8: me today. This is the most complicated CEO for investors 68 00:03:31,720 --> 00:03:34,240 Speaker 8: to deal with, and yet it really doesn't need to be. 69 00:03:34,760 --> 00:03:39,320 Speaker 8: We all are completely appalled by his statement, and we're 70 00:03:39,360 --> 00:03:42,520 Speaker 8: really calling on the board to take some action. If 71 00:03:42,520 --> 00:03:46,120 Speaker 8: you think about what Tesla's assets are, it's that brand 72 00:03:46,640 --> 00:03:49,240 Speaker 8: and it's also its people. So we really count on 73 00:03:49,320 --> 00:03:52,520 Speaker 8: Tesla to be innovative, and we really need them to 74 00:03:52,560 --> 00:03:57,120 Speaker 8: be able to attract, recruit, hire, and retain top talent. 75 00:03:57,480 --> 00:03:59,520 Speaker 8: And of course a statement like this is going to 76 00:03:59,560 --> 00:04:00,560 Speaker 8: inhibit all of those. 77 00:04:00,960 --> 00:04:03,880 Speaker 5: Kristin Ela Musk has said in the past and consistently 78 00:04:04,080 --> 00:04:08,760 Speaker 5: he is absolutely pro free speech, and he's also said 79 00:04:09,120 --> 00:04:12,000 Speaker 5: on more than one occasion he's against anti semitism of 80 00:04:12,040 --> 00:04:12,680 Speaker 5: any kind. 81 00:04:13,760 --> 00:04:16,760 Speaker 4: That's right, you hold a small volume of shares. 82 00:04:17,560 --> 00:04:20,200 Speaker 5: My understanding is that that is basically just a function 83 00:04:20,279 --> 00:04:22,640 Speaker 5: of being a social impact investor. There will be parts 84 00:04:22,680 --> 00:04:25,280 Speaker 5: of our audience that say, why is Kristin on She 85 00:04:25,360 --> 00:04:26,599 Speaker 5: holds hardly any stock. 86 00:04:27,279 --> 00:04:27,840 Speaker 6: Well, so we. 87 00:04:27,920 --> 00:04:31,040 Speaker 8: Actually held Tesla for many years in our core portfolios. 88 00:04:31,400 --> 00:04:34,960 Speaker 8: We really were behind that battery play and of course 89 00:04:35,080 --> 00:04:39,080 Speaker 8: the infrastructure across many of the products and services that 90 00:04:39,120 --> 00:04:43,039 Speaker 8: Tesla is bringing for a just and innovative transition to 91 00:04:43,120 --> 00:04:46,960 Speaker 8: a sustainable economy. So that thesis was really important to us, 92 00:04:47,000 --> 00:04:49,760 Speaker 8: and we did hold Tesla in our core portfolios. And 93 00:04:49,839 --> 00:04:53,400 Speaker 8: yet when it became really apparent that there was racial 94 00:04:53,400 --> 00:04:58,080 Speaker 8: discrimination within the plants and across the firm, we became 95 00:04:58,120 --> 00:05:01,240 Speaker 8: really cautious and there was lots of risk for us 96 00:05:01,320 --> 00:05:04,400 Speaker 8: as an investor, and we pulled out. We did retain 97 00:05:04,480 --> 00:05:06,680 Speaker 8: some shares on a small amount of shares, as you 98 00:05:06,720 --> 00:05:10,440 Speaker 8: point out, so that we could keep our responsibility as 99 00:05:10,440 --> 00:05:13,640 Speaker 8: investors to engage with this firm and to call them 100 00:05:14,080 --> 00:05:16,919 Speaker 8: on what in their own code of ethics says to 101 00:05:17,000 --> 00:05:19,839 Speaker 8: do the right thing. So Elon Musk is actually in 102 00:05:19,920 --> 00:05:22,280 Speaker 8: violation of his own code of ethics right now, and 103 00:05:22,320 --> 00:05:23,760 Speaker 8: that's why we're calling on the board. 104 00:05:24,560 --> 00:05:26,040 Speaker 4: Christ and thank you for that explanation. 105 00:05:26,279 --> 00:05:28,800 Speaker 5: I just think the audience wanted to understand the mechanics 106 00:05:29,040 --> 00:05:32,680 Speaker 5: of how your firm is operating. The emphasis is on 107 00:05:32,760 --> 00:05:36,479 Speaker 5: the absolute truth statement or posts that he made. He 108 00:05:36,520 --> 00:05:38,159 Speaker 5: made a follow up post which I are going to 109 00:05:38,160 --> 00:05:41,039 Speaker 5: bring up on the screen for our audience, where he 110 00:05:41,520 --> 00:05:45,000 Speaker 5: says the adl unjustly attacks the majority of the West, 111 00:05:45,360 --> 00:05:48,480 Speaker 5: despite the majority of the West supporting the Jewish people 112 00:05:48,520 --> 00:05:51,400 Speaker 5: and Israel. This is because they cannot buy their own 113 00:05:51,440 --> 00:05:55,080 Speaker 5: tenets criticize the minority groups who are their primary threat. 114 00:05:55,480 --> 00:05:58,280 Speaker 5: It is not right and needs to stop. What do 115 00:05:58,320 --> 00:06:01,040 Speaker 5: you think Elon Musk was trying to say in that post? 116 00:06:03,000 --> 00:06:05,839 Speaker 8: Now, Elon Musk has been erratic, He's been volatile with 117 00:06:05,920 --> 00:06:10,000 Speaker 8: this speech. We never actually know what he's trying to do. 118 00:06:10,400 --> 00:06:13,880 Speaker 8: And while he is saying he's promoting free speech, hateful 119 00:06:13,880 --> 00:06:17,200 Speaker 8: speech and hates speech has no place on X and 120 00:06:17,240 --> 00:06:20,400 Speaker 8: it certainly doesn't have any place coming from a major 121 00:06:20,760 --> 00:06:21,800 Speaker 8: CEO in our nation. 122 00:06:22,680 --> 00:06:27,279 Speaker 3: It's interesting that certain key founders leaders, one who actually 123 00:06:27,279 --> 00:06:31,760 Speaker 3: co founded now Meta, has called on perhaps roles within 124 00:06:31,800 --> 00:06:34,400 Speaker 3: other companies that Elon Musk holls. Of course, he's not 125 00:06:34,440 --> 00:06:36,600 Speaker 3: just the leader of Tesla, but he also is the 126 00:06:36,640 --> 00:06:39,800 Speaker 3: owner and CTO of X, the platform with which he's 127 00:06:39,839 --> 00:06:45,200 Speaker 3: currently putting out these views. And indeed, one particular key 128 00:06:45,400 --> 00:06:48,680 Speaker 3: founder saying, Linda Yacarino, your turn to actually potentially even 129 00:06:48,720 --> 00:06:51,719 Speaker 3: firer own CTO. Linda herself has been trying to point 130 00:06:51,720 --> 00:06:53,960 Speaker 3: out that X's view has always been very clear that 131 00:06:54,000 --> 00:06:56,120 Speaker 3: discrimination by everyone should. 132 00:06:55,920 --> 00:06:57,040 Speaker 6: Stop across the board. 133 00:06:57,880 --> 00:07:01,000 Speaker 3: What would you want to see for Elon, whether he 134 00:07:01,360 --> 00:07:05,000 Speaker 3: be CTO chair of X, whether it be CEO of Tesla, 135 00:07:05,040 --> 00:07:07,520 Speaker 3: whether it be his roles and the many other companies 136 00:07:07,520 --> 00:07:09,880 Speaker 3: that he has. Are you calling for him to step down? 137 00:07:11,680 --> 00:07:14,000 Speaker 8: So that isn't my place to call for that. I 138 00:07:14,120 --> 00:07:17,600 Speaker 8: do want to see the board stepping in and taking action. 139 00:07:18,080 --> 00:07:20,800 Speaker 8: And whether that means, you know, taking his cell phone away, 140 00:07:20,880 --> 00:07:24,280 Speaker 8: that's one possibility. But what we really need to see 141 00:07:24,360 --> 00:07:28,400 Speaker 8: is leadership, and we want to see him not only 142 00:07:28,440 --> 00:07:31,360 Speaker 8: protecting his brand but growing it in a sustainable and 143 00:07:31,400 --> 00:07:32,280 Speaker 8: inclusive way. 144 00:07:32,960 --> 00:07:33,200 Speaker 5: You know. 145 00:07:33,240 --> 00:07:37,320 Speaker 8: Again, we want to see employees, both current and future 146 00:07:37,760 --> 00:07:41,040 Speaker 8: feel not only really comfortable but excited to join this 147 00:07:41,160 --> 00:07:43,760 Speaker 8: and bring their top talent and expert and skills. And 148 00:07:43,760 --> 00:07:46,880 Speaker 8: then also on the consumer side, there are so many 149 00:07:47,040 --> 00:07:49,640 Speaker 8: consumers right now saying they're getting rid of their Tesla 150 00:07:49,680 --> 00:07:53,280 Speaker 8: and they're certainly not considering purchasing anything new, and so 151 00:07:53,800 --> 00:07:56,840 Speaker 8: with a prime business model at Tesla at any rate, 152 00:07:57,880 --> 00:08:00,880 Speaker 8: we need to see as an investor that that CEO 153 00:08:01,040 --> 00:08:03,360 Speaker 8: is really looking out for the business model, and that 154 00:08:03,480 --> 00:08:07,200 Speaker 8: brand has so much to do, so there's I personally 155 00:08:07,200 --> 00:08:09,840 Speaker 8: would like to see him step down. Whether that's possible, 156 00:08:09,840 --> 00:08:10,880 Speaker 8: that's really up to the board. 157 00:08:11,400 --> 00:08:11,760 Speaker 6: Christin. 158 00:08:11,920 --> 00:08:15,360 Speaker 3: It's been interesting because this hasn't happened in a vacuum. 159 00:08:15,600 --> 00:08:18,560 Speaker 6: In fact, we have seen him put out. 160 00:08:18,520 --> 00:08:22,200 Speaker 3: Very controversial posts before, some which he has indeed retracted, 161 00:08:22,320 --> 00:08:25,400 Speaker 3: and he's gone to say he's full pro free speech 162 00:08:25,640 --> 00:08:27,640 Speaker 3: but against anti antisemitism in. 163 00:08:27,560 --> 00:08:30,440 Speaker 6: All its forms. But he's almost been a bit like Teflon. 164 00:08:30,880 --> 00:08:34,240 Speaker 3: Nothing has stuck, and Tesla nevertheless is up ninety percent 165 00:08:34,360 --> 00:08:36,280 Speaker 3: year to date in terms of a share price, and 166 00:08:36,280 --> 00:08:38,959 Speaker 3: people thus far perhaps haven't been pulling back on their 167 00:08:38,960 --> 00:08:41,760 Speaker 3: Tesla purchases. It's been deemed more of a consumer weakness 168 00:08:41,800 --> 00:08:44,679 Speaker 3: story than it has actually a pushback against Lil Musk. 169 00:08:45,200 --> 00:08:48,080 Speaker 3: Can you really sort of drive that narrative together? 170 00:08:48,120 --> 00:08:49,960 Speaker 6: Do you think this is the moment that we see 171 00:08:49,960 --> 00:08:51,120 Speaker 6: a tipping point? 172 00:08:52,559 --> 00:08:54,199 Speaker 8: You know, it's going to be interesting to see what 173 00:08:54,360 --> 00:08:57,960 Speaker 8: we see as a tipping point, because with a regular company, 174 00:08:58,280 --> 00:09:03,560 Speaker 8: an ordinary company with one of the richest billionaire CEOs, 175 00:09:04,080 --> 00:09:08,160 Speaker 8: we would have seen other consequences much earlier. Elon Musk 176 00:09:08,400 --> 00:09:10,960 Speaker 8: is in icon in the US and across the world, 177 00:09:11,120 --> 00:09:13,520 Speaker 8: and he seems to be treated differently both by his 178 00:09:13,600 --> 00:09:18,720 Speaker 8: board and by his van base, and that's problematic, I believe, 179 00:09:18,840 --> 00:09:22,359 Speaker 8: for the kind of companies and the kind of corporations 180 00:09:22,360 --> 00:09:24,120 Speaker 8: that we want to see grow in the US. 181 00:09:25,280 --> 00:09:29,280 Speaker 5: We reiterate that Tesla has rebounded to positive territory, having 182 00:09:29,320 --> 00:09:31,240 Speaker 5: been down as much as three percent in the session 183 00:09:31,920 --> 00:09:33,000 Speaker 5: over a two day basis. 184 00:09:33,040 --> 00:09:34,680 Speaker 4: Of course it's lower, but on the week. 185 00:09:34,520 --> 00:09:38,040 Speaker 5: I think on track for a pretty sizable gain. There 186 00:09:38,080 --> 00:09:40,640 Speaker 5: are many that took to X in support of Elon 187 00:09:40,720 --> 00:09:43,960 Speaker 5: Musk who are both Tesla shareholders and vehicle owners. But 188 00:09:44,000 --> 00:09:46,280 Speaker 5: there's one name that seems aligned with you, and that 189 00:09:46,400 --> 00:09:50,360 Speaker 5: is Ross Gerber, a Tesla investor who says his clients 190 00:09:50,520 --> 00:09:51,440 Speaker 5: his an asset manager. 191 00:09:51,440 --> 00:09:52,280 Speaker 4: His clients are. 192 00:09:52,160 --> 00:09:55,720 Speaker 5: Asking him to unwind their positions. They will no longer 193 00:09:55,760 --> 00:09:58,720 Speaker 5: buy Tesla cars. My understanding is that you are doing 194 00:09:58,720 --> 00:10:01,360 Speaker 5: a new initiative where you're right to the board of 195 00:10:01,400 --> 00:10:04,480 Speaker 5: Tesla in the coming week. Have you spoken to Ross 196 00:10:04,480 --> 00:10:06,960 Speaker 5: and who are you trying to bring in on the 197 00:10:07,000 --> 00:10:08,319 Speaker 5: initiative that you're taking. 198 00:10:09,800 --> 00:10:13,240 Speaker 8: Actually, that's really interesting, So we haven't spoken to Ross yet. 199 00:10:13,280 --> 00:10:13,800 Speaker 4: I welcome that. 200 00:10:13,840 --> 00:10:16,320 Speaker 8: I maybe he's available for a phone call this afternoon, 201 00:10:16,320 --> 00:10:19,120 Speaker 8: that would be great. We are part of a coalition 202 00:10:19,240 --> 00:10:22,720 Speaker 8: with Whistlestock Capital and many others who have written to 203 00:10:22,760 --> 00:10:24,840 Speaker 8: the board, and we did that actually earlier this year. 204 00:10:24,880 --> 00:10:28,520 Speaker 8: We put out a statement and a letter speaking about 205 00:10:28,559 --> 00:10:31,120 Speaker 8: lots of different issues that we want to see the 206 00:10:31,160 --> 00:10:34,200 Speaker 8: board take up, and sadly we have not had a response. 207 00:10:34,559 --> 00:10:37,720 Speaker 8: And so we've been meeting as a group monthly to 208 00:10:37,800 --> 00:10:40,800 Speaker 8: figure out how we can be engaged to really support 209 00:10:40,840 --> 00:10:44,319 Speaker 8: this company to be its best. And we will resend 210 00:10:44,320 --> 00:10:47,280 Speaker 8: that letter with a new cover letter with the additional 211 00:10:47,280 --> 00:10:50,160 Speaker 8: grievances that have occurred since we sent the original letter, 212 00:10:50,200 --> 00:10:51,920 Speaker 8: and that should go out in the next couple of weeks. 213 00:10:52,559 --> 00:10:55,200 Speaker 3: Kristin, howe, let us know what the response, if any, is, 214 00:10:55,559 --> 00:10:57,680 Speaker 3: and we thank you so much for articulating your point 215 00:10:57,679 --> 00:10:59,839 Speaker 3: of view for Nia Impact Capital today. 216 00:11:00,360 --> 00:11:02,480 Speaker 6: We thank you for your time. Meanwhile, coming up. 217 00:11:02,440 --> 00:11:05,000 Speaker 3: That we're going to turn to the markets, because, as 218 00:11:05,000 --> 00:11:07,080 Speaker 3: we've been saying, Tesla stock is up over the last 219 00:11:07,080 --> 00:11:09,840 Speaker 3: five days, and indeed over the last month, tech stocks 220 00:11:09,880 --> 00:11:12,680 Speaker 3: have really outperformed, and we're up two trillion dollars worth 221 00:11:12,679 --> 00:11:15,000 Speaker 3: in terms of a risk rally in November, but could 222 00:11:15,000 --> 00:11:16,120 Speaker 3: it be at a slowing point? 223 00:11:16,320 --> 00:11:17,160 Speaker 6: And what are you looking at? 224 00:11:18,200 --> 00:11:20,960 Speaker 5: I'm looking at shares of Applied Materials, the biggest US 225 00:11:21,080 --> 00:11:23,200 Speaker 5: maker of chip making equipment. To see they're the stock 226 00:11:23,240 --> 00:11:26,960 Speaker 5: down five point five percent, five point four percent. Reuter's 227 00:11:27,000 --> 00:11:31,040 Speaker 5: reporting that a probe's been opened by the US into 228 00:11:31,240 --> 00:11:34,439 Speaker 5: it breaching those US technology export curbs to China. 229 00:11:34,480 --> 00:11:36,880 Speaker 4: We'll get the details next. This has Boombog. 230 00:11:36,520 --> 00:11:57,400 Speaker 5: Technology technology stocks wavering today amid November's two trillion dollar rally. 231 00:11:57,440 --> 00:11:59,839 Speaker 5: What can we expect going forward? There's a bit of 232 00:11:59,880 --> 00:12:03,000 Speaker 5: a learning still to come and joining us now. Jonathan Curtis, 233 00:12:03,520 --> 00:12:07,200 Speaker 5: Franklin Equity Group, Senior VP and Director of Portfolio Management. 234 00:12:07,240 --> 00:12:10,360 Speaker 5: You're an investor who holds a number of the magnificent 235 00:12:10,440 --> 00:12:13,520 Speaker 5: seven key semiconductor names and software names. It's in the 236 00:12:13,600 --> 00:12:17,160 Speaker 5: chip space. I want to start Applied Materials. The report 237 00:12:17,200 --> 00:12:21,760 Speaker 5: of that probe looking at whether they breached the US 238 00:12:21,960 --> 00:12:26,520 Speaker 5: technology export curbs to China. You hold Applied Materials across 239 00:12:26,520 --> 00:12:27,720 Speaker 5: different Franklin funds. 240 00:12:28,120 --> 00:12:30,400 Speaker 4: Just to what did you make of that report? First? Jonathan? 241 00:12:31,520 --> 00:12:35,520 Speaker 2: Yeah, Well, in fact, Applied Materials had actually disclosed back 242 00:12:35,559 --> 00:12:37,080 Speaker 2: in October of twenty twenty two. 243 00:12:37,160 --> 00:12:40,840 Speaker 4: I believe that they were under investigation. 244 00:12:41,600 --> 00:12:44,400 Speaker 2: The incremental news that we got yesterday out of Reuter's 245 00:12:44,679 --> 00:12:49,720 Speaker 2: was that the investigation had turned perhaps potentially criminal. I 246 00:12:49,720 --> 00:12:52,600 Speaker 2: don't think comment the company is commentating on the specifics 247 00:12:52,600 --> 00:12:57,559 Speaker 2: of that report. But importantly, Applied Materials is one of 248 00:12:57,600 --> 00:13:01,600 Speaker 2: the world's leading semiconduction capital equipment companies. They're involved in 249 00:13:01,720 --> 00:13:04,679 Speaker 2: really every part of the market with the exceptional lethography, 250 00:13:04,720 --> 00:13:06,640 Speaker 2: They're a leading player in the space. 251 00:13:07,040 --> 00:13:07,960 Speaker 4: They're very very. 252 00:13:07,880 --> 00:13:13,000 Speaker 2: Essential for Western babs, FABS in Korea, FABS in Taiwan, 253 00:13:13,440 --> 00:13:16,760 Speaker 2: and fabs in China. And while if they have made 254 00:13:16,800 --> 00:13:19,920 Speaker 2: a mistake, or if somebody deeper down in the company 255 00:13:19,920 --> 00:13:22,040 Speaker 2: made a mistake and allowed equipment to make its way 256 00:13:22,080 --> 00:13:26,600 Speaker 2: over to a smith in China, then certainly that should 257 00:13:26,640 --> 00:13:28,680 Speaker 2: be dealt with. But when I don't think that any 258 00:13:28,800 --> 00:13:33,200 Speaker 2: sanctions that would be imposed would negatively impact the company's 259 00:13:33,200 --> 00:13:37,400 Speaker 2: earnings power or they're certainly their mote, their critical supplier 260 00:13:37,800 --> 00:13:41,439 Speaker 2: in the ecosystem and very very essential to keep operating. 261 00:13:43,080 --> 00:13:46,480 Speaker 5: Johnath, thank you strapolate out the China risk to the 262 00:13:46,480 --> 00:13:48,520 Speaker 5: industry more broadly. Right, if you think about how Nvidia 263 00:13:48,600 --> 00:13:51,600 Speaker 5: is traded over the last seven days. Some of it's 264 00:13:51,600 --> 00:13:55,840 Speaker 5: on reports of new gen China specific chips right trying 265 00:13:55,880 --> 00:14:01,880 Speaker 5: to get product that complies with these curbs. Clearly there 266 00:14:01,960 --> 00:14:03,959 Speaker 5: is a danger of being in breach of them. How 267 00:14:04,000 --> 00:14:05,719 Speaker 5: as an investor do you navigate that? 268 00:14:06,760 --> 00:14:09,600 Speaker 2: Yeah, well, so, certainly in China wants to be able 269 00:14:09,600 --> 00:14:13,319 Speaker 2: to be a player on some of these leading edge chips. 270 00:14:13,320 --> 00:14:15,319 Speaker 4: They want to be able to manufacture them. Certainly they 271 00:14:15,400 --> 00:14:16,080 Speaker 4: want to have. 272 00:14:16,000 --> 00:14:19,320 Speaker 2: Them for their own efforts in cloud computing, in military 273 00:14:19,360 --> 00:14:22,680 Speaker 2: and artificial intelligence, and the US is trying to curb that. 274 00:14:24,000 --> 00:14:27,320 Speaker 4: China is a very big market. Even if China is 275 00:14:27,360 --> 00:14:28,240 Speaker 4: not able. 276 00:14:28,000 --> 00:14:31,760 Speaker 2: To acquire the chips they want, they will certainly find 277 00:14:31,840 --> 00:14:34,840 Speaker 2: other ways around being able to get get the most 278 00:14:34,920 --> 00:14:39,920 Speaker 2: leading edge chips by manufacturing their own less powerful chips, 279 00:14:39,920 --> 00:14:43,560 Speaker 2: but spending then more money on the equipment to build 280 00:14:43,600 --> 00:14:46,760 Speaker 2: those less powerful chips and more money on the infrastructure 281 00:14:46,800 --> 00:14:49,560 Speaker 2: to run those chips so they can match the compute 282 00:14:49,560 --> 00:14:53,440 Speaker 2: capacity in the West. So, in an odd way, we 283 00:14:53,480 --> 00:14:56,000 Speaker 2: actually think it is positive for the industry because it 284 00:14:56,120 --> 00:15:01,320 Speaker 2: ultimately means that there's an overspend if you will happening 285 00:15:01,360 --> 00:15:06,080 Speaker 2: in China to support matching the compute capacity requirements of China, 286 00:15:07,400 --> 00:15:09,760 Speaker 2: but certainly we are paying close attention to it, you know, 287 00:15:09,920 --> 00:15:12,600 Speaker 2: guard up applied Materials. At the beginning of our conversation, 288 00:15:13,360 --> 00:15:15,280 Speaker 2: I think forty four percent of their revenue in the 289 00:15:15,280 --> 00:15:19,240 Speaker 2: most recent quarter was from in fact China, So certainly 290 00:15:19,360 --> 00:15:22,480 Speaker 2: China is a big consumer. The US is really trying 291 00:15:22,520 --> 00:15:27,800 Speaker 2: to limit China's access to equipment and processes and chips 292 00:15:27,840 --> 00:15:31,760 Speaker 2: at the leading edge. But China can make good progress 293 00:15:31,800 --> 00:15:35,800 Speaker 2: and build a very successful industry on lagging edge nodes 294 00:15:36,320 --> 00:15:38,040 Speaker 2: if they want it, and they'll just end up having 295 00:15:38,120 --> 00:15:42,080 Speaker 2: to overspend to match the compute capacity available in the 296 00:15:42,120 --> 00:15:43,640 Speaker 2: West for more advanced chips. 297 00:15:43,920 --> 00:15:47,240 Speaker 3: Jonathan is interesting and mentions in video of course, and 298 00:15:47,280 --> 00:15:49,080 Speaker 3: the way in which they're trying to build different types 299 00:15:49,080 --> 00:15:51,520 Speaker 3: of chips to meet the current standards, and video course 300 00:15:51,560 --> 00:15:55,040 Speaker 3: got its earnings coming up fast, and I'm interested in 301 00:15:55,080 --> 00:15:58,640 Speaker 3: your perspective on ultimately how far these Magnificent seven have 302 00:15:58,840 --> 00:16:01,240 Speaker 3: room yet to run. Is an idea I think is 303 00:16:01,280 --> 00:16:03,920 Speaker 3: put out by Goldman Sachs that twenty twenty four you stay, 304 00:16:03,960 --> 00:16:06,080 Speaker 3: you hold, you remain invested, and actually these might have 305 00:16:06,280 --> 00:16:08,160 Speaker 3: sent seven is still going to be some of the 306 00:16:08,160 --> 00:16:10,400 Speaker 3: companies that deliver into the next year as well. 307 00:16:10,440 --> 00:16:12,040 Speaker 6: Do you abide by that with evaluations? 308 00:16:12,160 --> 00:16:15,880 Speaker 2: Yeah, yeah, we're certainly quite positive on really the entire 309 00:16:16,400 --> 00:16:20,480 Speaker 2: technology sector and artificial intelligence particular. The Magnificent Seven have 310 00:16:20,560 --> 00:16:24,400 Speaker 2: done well because they are truly magnificent businesses, strong balance sheets, 311 00:16:24,480 --> 00:16:28,600 Speaker 2: high levels of profitability, structural growers. But almost all of them, 312 00:16:28,640 --> 00:16:31,320 Speaker 2: with the exception of one or two, have very strong 313 00:16:31,400 --> 00:16:36,480 Speaker 2: AI talk tracks and opportunities. They have massive amounts of data, 314 00:16:36,520 --> 00:16:39,160 Speaker 2: They can get more data, they can wrangle the compute 315 00:16:39,160 --> 00:16:41,680 Speaker 2: to build these models, They have the talent to build 316 00:16:41,680 --> 00:16:44,600 Speaker 2: these models, and then they have the pathways into which 317 00:16:44,680 --> 00:16:48,320 Speaker 2: to deliver value from these models into their customers and 318 00:16:48,720 --> 00:16:51,480 Speaker 2: charge for them. Some of these companies have the potential 319 00:16:51,760 --> 00:16:55,840 Speaker 2: to double their overall businesses on the delivery of AI 320 00:16:55,920 --> 00:17:00,280 Speaker 2: features into just a small number of their businesses. Is 321 00:17:00,440 --> 00:17:04,040 Speaker 2: great potential that lies ahead for many of the Magnificent Seven. 322 00:17:04,119 --> 00:17:07,040 Speaker 2: Now we own many of them, we happen to be 323 00:17:07,119 --> 00:17:10,640 Speaker 2: underweight them. We see greater value down the market cap 324 00:17:10,760 --> 00:17:13,560 Speaker 2: range companies that have some of those same characteristics as 325 00:17:13,600 --> 00:17:16,520 Speaker 2: the Magnificent Seven, but that are trading it more compelling 326 00:17:17,000 --> 00:17:18,000 Speaker 2: valuation levels. 327 00:17:18,119 --> 00:17:20,000 Speaker 3: Can you just very quickly tell us some of the 328 00:17:20,080 --> 00:17:21,640 Speaker 3: names therefore that are less obvious. 329 00:17:22,359 --> 00:17:25,560 Speaker 2: Sure a company like a service now for instance, they 330 00:17:25,600 --> 00:17:28,680 Speaker 2: have they can tick all those boxes that the Magnificent 331 00:17:28,880 --> 00:17:30,679 Speaker 2: seven can in terms of being able to be a 332 00:17:30,680 --> 00:17:31,480 Speaker 2: player in AI. 333 00:17:31,880 --> 00:17:34,160 Speaker 4: But I think they're just a less well understood business. 334 00:17:34,320 --> 00:17:37,959 Speaker 2: They have significant opportunities to raise prices and to deliver 335 00:17:38,040 --> 00:17:40,920 Speaker 2: new value to their customers, to make their customers more efficient, 336 00:17:41,280 --> 00:17:42,520 Speaker 2: all with generative AI. 337 00:17:42,840 --> 00:17:46,080 Speaker 3: Jonathan Curtis, we thank you a Franklin Equity Group. 338 00:17:46,280 --> 00:17:55,600 Speaker 6: Great to have you time now for talking tech. 339 00:17:55,600 --> 00:17:58,480 Speaker 3: First up, Apple maybe falling behind in fact on his 340 00:17:58,520 --> 00:18:00,919 Speaker 3: efforts to make a modem chip for the iPhone. 341 00:18:01,119 --> 00:18:03,199 Speaker 6: Apple will likely misrolling. 342 00:18:02,640 --> 00:18:05,239 Speaker 3: Out its own emonem for twenty twenty five due to 343 00:18:05,320 --> 00:18:07,720 Speaker 3: the complex designs of Qualcom's chip. 344 00:18:08,080 --> 00:18:09,880 Speaker 6: Mean While open AI, s Altmann. 345 00:18:09,560 --> 00:18:12,200 Speaker 3: Believes we have yet to see the biggest risks in 346 00:18:12,320 --> 00:18:15,280 Speaker 3: AI posers to US politics and policy. While he is 347 00:18:15,320 --> 00:18:18,440 Speaker 3: hopeful that oftificial intelligence can help humanity in the longer term, 348 00:18:18,600 --> 00:18:21,359 Speaker 3: Amann has called for government oversight of the technology in 349 00:18:21,400 --> 00:18:25,560 Speaker 3: the near term. Plus, Amazon cunning hundreds of jobs in 350 00:18:25,600 --> 00:18:28,400 Speaker 3: its voice activated Alexa division. Now, the company says it's 351 00:18:28,400 --> 00:18:31,840 Speaker 3: shifting efforts to better focus on building capabilities powered by 352 00:18:32,080 --> 00:18:33,480 Speaker 3: you guess it generator. 353 00:18:33,200 --> 00:18:34,080 Speaker 6: AI ed. 354 00:18:35,880 --> 00:18:38,040 Speaker 5: Back here in SF and the pitch, I says he 355 00:18:38,160 --> 00:18:41,520 Speaker 5: expects China to be at the forefront of AI. The 356 00:18:41,520 --> 00:18:45,399 Speaker 5: Alphabet CEO called China's work on the technology astounding to 357 00:18:45,480 --> 00:18:47,679 Speaker 5: see during a conversation over at APEX. 358 00:18:47,720 --> 00:18:49,840 Speaker 4: Have a listen. It's not going to be easy. 359 00:18:49,960 --> 00:18:56,240 Speaker 9: But I would start from this premise that AI will proliferate. 360 00:18:56,520 --> 00:19:00,240 Speaker 9: So this is not the inherent nature of software. AI 361 00:19:00,359 --> 00:19:04,760 Speaker 9: advances will get out to in all countries, and so 362 00:19:04,920 --> 00:19:07,400 Speaker 9: it is naturally the kind of technology. I don't think 363 00:19:07,400 --> 00:19:11,679 Speaker 9: there's any unilateral safety to be had. We all have 364 00:19:11,760 --> 00:19:16,119 Speaker 9: a shared incentive to solve for safety. You know, you 365 00:19:16,119 --> 00:19:20,280 Speaker 9: could have AI go wrong in one country that will 366 00:19:20,280 --> 00:19:22,919 Speaker 9: impact every other country. So in some ways, it's like 367 00:19:22,960 --> 00:19:25,280 Speaker 9: climate change in the planet. We all share a planet. 368 00:19:25,840 --> 00:19:28,919 Speaker 9: I think that's true for AI. So now that you 369 00:19:29,000 --> 00:19:31,439 Speaker 9: know that will be true, I think you have to 370 00:19:31,480 --> 00:19:37,000 Speaker 9: start building the frameworks globally to make progress. I've seen 371 00:19:37,119 --> 00:19:41,679 Speaker 9: encouraging progress when the G seven happened in Hiroshima. I 372 00:19:41,680 --> 00:19:44,960 Speaker 9: think it was a good start. You've seen more progress 373 00:19:45,080 --> 00:19:48,600 Speaker 9: the Uki summit last week, the administration here. The White 374 00:19:48,640 --> 00:19:52,280 Speaker 9: House has been leading the way as well, and I 375 00:19:52,320 --> 00:19:57,240 Speaker 9: saw good encouraging announcements even yesterday for us in China 376 00:19:57,840 --> 00:20:09,080 Speaker 9: to start having a dialogue on AI alf Let's CEO. 377 00:20:01,800 --> 00:20:13,600 Speaker 5: So welcome back to Bloomberg Technology, Ed Ludlow here in 378 00:20:13,640 --> 00:20:15,000 Speaker 5: San Francisco. 379 00:20:14,520 --> 00:20:15,720 Speaker 6: In Caroline Hide in New York. 380 00:20:15,720 --> 00:20:18,240 Speaker 3: There has of course been some weakness in Tesla's trading 381 00:20:18,320 --> 00:20:21,800 Speaker 3: yesterday after of course, one has been seemingly an endorsement 382 00:20:21,800 --> 00:20:24,840 Speaker 3: for some anti semitic posts post on x by the 383 00:20:24,880 --> 00:20:27,119 Speaker 3: owner of x Any, the CEO of Tesla, which is 384 00:20:27,119 --> 00:20:27,720 Speaker 3: Elon Musk. 385 00:20:27,800 --> 00:20:30,040 Speaker 6: But a lot to still be dissecting across the board. 386 00:20:30,200 --> 00:20:33,080 Speaker 5: D Yeah, that was the big story of the last 387 00:20:33,080 --> 00:20:35,919 Speaker 5: twenty four hours. The other is Apex, which is wrapping 388 00:20:36,000 --> 00:20:39,000 Speaker 5: up in San Francisco. It's a who's who of global 389 00:20:39,080 --> 00:20:42,600 Speaker 5: power players in politics and technology. One of them, I'm 390 00:20:42,600 --> 00:20:45,440 Speaker 5: delighted to say, joins me right now on set Bloomberg's 391 00:20:45,440 --> 00:20:47,880 Speaker 5: Amory Horden. You make it to that party last night 392 00:20:47,920 --> 00:20:48,400 Speaker 5: down the road. 393 00:20:48,640 --> 00:20:49,159 Speaker 6: I did that. 394 00:20:49,320 --> 00:20:55,159 Speaker 5: Now I'm in all seriousness. Everyone that matters in the 395 00:20:55,160 --> 00:20:57,879 Speaker 5: world has been here. When you last joined us on 396 00:20:57,920 --> 00:21:00,840 Speaker 5: the show, it was all about Biden. G what happened 397 00:21:00,880 --> 00:21:03,760 Speaker 5: after that, particularly in the world of technology as well. 398 00:21:04,200 --> 00:21:06,800 Speaker 10: Yeah, I think Biden and she really was the starting 399 00:21:06,840 --> 00:21:10,320 Speaker 10: gun to this entire APEC summit. But then for Shijingping, 400 00:21:10,800 --> 00:21:13,560 Speaker 10: as much as the Biden meeting was very important. Actually, 401 00:21:13,600 --> 00:21:15,440 Speaker 10: the New York Times had a story about one of 402 00:21:15,440 --> 00:21:18,119 Speaker 10: the organizers was talking about how the Chinese had prepared 403 00:21:18,160 --> 00:21:20,720 Speaker 10: three speeches for him to give those executives, and he 404 00:21:20,840 --> 00:21:23,560 Speaker 10: ended up going with the friendliest one after the Biden meeting, 405 00:21:24,080 --> 00:21:24,760 Speaker 10: that room where he. 406 00:21:24,760 --> 00:21:25,800 Speaker 6: Got all those applauses. 407 00:21:25,840 --> 00:21:26,800 Speaker 10: It costs a lot of money. 408 00:21:26,640 --> 00:21:29,000 Speaker 4: To say about Tim Cook being in the room as well, people. 409 00:21:28,800 --> 00:21:32,040 Speaker 10: Like that, Larry Fang, Steve Schwartzman. But then we also 410 00:21:32,080 --> 00:21:35,480 Speaker 10: had a letter from Shijingping going out to executives saying 411 00:21:35,520 --> 00:21:39,360 Speaker 10: he wants a heartwarming welcome really of the business community. 412 00:21:39,400 --> 00:21:42,720 Speaker 10: He's clearly trying to woo investors. And it comes as 413 00:21:42,760 --> 00:21:46,480 Speaker 10: there's been a tumble really a feign direct investment into China. 414 00:21:46,960 --> 00:21:50,040 Speaker 10: So this was Shijingping's opening in his moment. The problem 415 00:21:50,119 --> 00:21:52,720 Speaker 10: is these are just words at this moment. They sound 416 00:21:52,840 --> 00:21:55,600 Speaker 10: very fuzzy and warm from the Chinese president, But will 417 00:21:55,600 --> 00:21:58,840 Speaker 10: there be actions? I will note about a few hours 418 00:21:58,840 --> 00:22:02,199 Speaker 10: before Shijing Ping's letter became public and his remarks to 419 00:22:02,359 --> 00:22:06,639 Speaker 10: these executives, the Chinese Commerce Ministry did say that they 420 00:22:06,680 --> 00:22:09,119 Speaker 10: are going to try to go after a campaign for 421 00:22:09,280 --> 00:22:13,159 Speaker 10: potential discriminative measures that are happening to foreign investors. 422 00:22:12,640 --> 00:22:15,360 Speaker 4: So aka technology export curbs. 423 00:22:16,280 --> 00:22:17,560 Speaker 6: Technology expert curbs. 424 00:22:17,600 --> 00:22:20,560 Speaker 10: I'm talking more about foreign direct investment into China, but yes, 425 00:22:20,600 --> 00:22:24,840 Speaker 10: technology companies have been having a number of issues in China. 426 00:22:25,240 --> 00:22:27,639 Speaker 10: But if we're talking about technology export curbs from the 427 00:22:27,720 --> 00:22:30,880 Speaker 10: United States into China, that is something that I'm sure 428 00:22:30,920 --> 00:22:34,679 Speaker 10: Shijinping brought up with President Biden. But the US is 429 00:22:34,720 --> 00:22:37,560 Speaker 10: not going to budge on any of these sanctions, any 430 00:22:37,600 --> 00:22:40,760 Speaker 10: of these penalties that potentially can hinder their national security. 431 00:22:41,080 --> 00:22:42,919 Speaker 3: Amory Horden, it's been great to have you on the 432 00:22:42,920 --> 00:22:45,000 Speaker 3: show throughout the week. We really appreciate it, and we 433 00:22:45,040 --> 00:22:48,000 Speaker 3: want to well pick up where Amrie leaves off. Ultimately, 434 00:22:48,080 --> 00:22:51,800 Speaker 3: has these discussions in any way changed the ultimate relationship, 435 00:22:51,840 --> 00:22:54,600 Speaker 3: the trade relationship between US and China thus far, I've 436 00:22:54,600 --> 00:22:56,840 Speaker 3: got the perfect guest e Liza Tobin, Senior director of 437 00:22:56,840 --> 00:23:00,879 Speaker 3: Research analysis for the Economy Special Competitive Studies Project, And 438 00:23:00,920 --> 00:23:04,000 Speaker 3: indeed you previously served on the National Security Council Staff 439 00:23:04,040 --> 00:23:06,840 Speaker 3: as China Director, where you help lead development of multiple 440 00:23:06,920 --> 00:23:09,679 Speaker 3: US strategies and policies related to China. And to that 441 00:23:09,800 --> 00:23:13,280 Speaker 3: end point, will policy change? Will doing business get any 442 00:23:13,280 --> 00:23:14,760 Speaker 3: easier between these two nations? 443 00:23:16,359 --> 00:23:17,200 Speaker 4: Thank you so much. 444 00:23:17,680 --> 00:23:17,760 Speaker 8: No. 445 00:23:17,880 --> 00:23:20,440 Speaker 1: I think the previous speaker is right. I think the 446 00:23:21,720 --> 00:23:25,879 Speaker 1: talk out of Xi Jinping is trying to signal that 447 00:23:26,000 --> 00:23:28,720 Speaker 1: China is open to business. But I think words are cheap, 448 00:23:29,160 --> 00:23:32,600 Speaker 1: and I think what we're seeing is a tactical shift, 449 00:23:32,640 --> 00:23:35,040 Speaker 1: but no strategic shift on either side. I think the 450 00:23:35,119 --> 00:23:37,240 Speaker 1: US is going to keep up the pressure on the 451 00:23:37,240 --> 00:23:41,520 Speaker 1: technology and economic controls, and for China's side, I don't 452 00:23:41,520 --> 00:23:46,800 Speaker 1: think Sheijinping's strategy has change at all over the long term. 453 00:23:46,880 --> 00:23:48,760 Speaker 1: I think this is trying to kind of reduce some 454 00:23:48,800 --> 00:23:52,160 Speaker 1: of the pressure given how weak China's economy is looking lately. 455 00:23:52,720 --> 00:23:55,919 Speaker 3: Okay, so paint us forward five ten years time. What 456 00:23:55,960 --> 00:24:00,400 Speaker 3: does this relationship look like. What does this self ability 457 00:24:00,560 --> 00:24:04,600 Speaker 3: to provide for chips, for manufacturing, for technological innovation within 458 00:24:04,720 --> 00:24:08,160 Speaker 3: China look like? Can they be self determination in that respect? 459 00:24:09,640 --> 00:24:13,200 Speaker 1: The administration going into this was really signaling that they 460 00:24:13,600 --> 00:24:17,159 Speaker 1: see the United States as in a long term strategic 461 00:24:17,240 --> 00:24:20,600 Speaker 1: rivalry and competition with the peoples from public of China, 462 00:24:20,640 --> 00:24:23,080 Speaker 1: and so this meeting was intended to kind of set 463 00:24:23,119 --> 00:24:27,480 Speaker 1: a floor and stabilize relations, and they kind of signaled 464 00:24:27,560 --> 00:24:30,760 Speaker 1: very low expectations that they hope to at the very 465 00:24:30,840 --> 00:24:35,119 Speaker 1: least restore some kind of military to military communications. So 466 00:24:35,520 --> 00:24:39,480 Speaker 1: going forward, based on the updates last month that you 467 00:24:39,560 --> 00:24:42,600 Speaker 1: saw to the export controls on the high end AI chips, 468 00:24:42,840 --> 00:24:45,960 Speaker 1: these were really a doubling down by the US administration 469 00:24:46,160 --> 00:24:48,840 Speaker 1: on those controls and the signaling that they realized that 470 00:24:48,880 --> 00:24:51,359 Speaker 1: they're in a cat and mouse game and that China 471 00:24:51,400 --> 00:24:54,520 Speaker 1: will adjust to the US controls and continue to seek loopholes, 472 00:24:54,760 --> 00:24:58,000 Speaker 1: but the administration in response, will continue to update them 473 00:24:58,400 --> 00:25:01,360 Speaker 1: in order to try to meet the object of preventing 474 00:25:01,440 --> 00:25:06,080 Speaker 1: China from using US high end chips to accelerate their 475 00:25:06,080 --> 00:25:07,040 Speaker 1: military development. 476 00:25:08,440 --> 00:25:11,520 Speaker 5: Eliza, you said a moment ago, words are cheap. I 477 00:25:11,520 --> 00:25:14,399 Speaker 5: think that's what you said. That we're talking largely in 478 00:25:14,400 --> 00:25:18,800 Speaker 5: the context of the diplomatic relationship between the US and China. 479 00:25:19,160 --> 00:25:21,400 Speaker 5: You look at who is in the room Wednesday night. 480 00:25:21,520 --> 00:25:26,400 Speaker 5: Tim kok hoc Tan of Broadcom, it seems as if 481 00:25:26,880 --> 00:25:29,600 Speaker 5: the private sector the biggest technology companies in the world 482 00:25:29,720 --> 00:25:32,359 Speaker 5: have a very different attitude to China. 483 00:25:32,400 --> 00:25:37,359 Speaker 4: They just want to do business there. Beijing is smart. 484 00:25:37,720 --> 00:25:41,840 Speaker 1: It has a strategy of trying to exploit the gaps 485 00:25:42,480 --> 00:25:47,520 Speaker 1: and the splits in American society, you know, federal government 486 00:25:47,720 --> 00:25:52,440 Speaker 1: versus local and state level government, public and private. They 487 00:25:52,480 --> 00:25:56,560 Speaker 1: realize that we're democracy and they try to exploit these gaps. However, 488 00:25:56,680 --> 00:26:01,160 Speaker 1: I think given how increasingly opaque and hostile to foreign 489 00:26:01,240 --> 00:26:04,800 Speaker 1: businesses the Chinese market is, I don't think you're going 490 00:26:04,840 --> 00:26:09,280 Speaker 1: to see any kind of strategic reprochement between the companies. 491 00:26:09,400 --> 00:26:13,320 Speaker 1: China has moved on beyond the era of reform and opening. 492 00:26:13,359 --> 00:26:14,760 Speaker 4: That era is over. 493 00:26:15,280 --> 00:26:18,400 Speaker 1: They still say these words, but I think the reality 494 00:26:18,440 --> 00:26:20,840 Speaker 1: on the ground is becoming increasingly hostile. 495 00:26:22,640 --> 00:26:25,160 Speaker 4: Liza, it's Friday. It's been a long week. 496 00:26:25,480 --> 00:26:28,879 Speaker 5: What is the most positive outcome from APEG. What is 497 00:26:28,920 --> 00:26:30,280 Speaker 5: a good thing that's come out of it? 498 00:26:31,280 --> 00:26:35,120 Speaker 1: Looks I had mentioned that the administration kind of set 499 00:26:35,200 --> 00:26:37,640 Speaker 1: a low bar for itself, and I think they stepped 500 00:26:37,720 --> 00:26:40,240 Speaker 1: over those low expectations easily, and there are a few 501 00:26:40,760 --> 00:26:45,640 Speaker 1: kind of concrete deliverables. One that they're quite I think 502 00:26:45,800 --> 00:26:49,280 Speaker 1: gratified by is an agreement to work with the Chinese 503 00:26:49,359 --> 00:26:52,520 Speaker 1: on counter narcotics, and of course there's a lot of 504 00:26:52,640 --> 00:26:56,040 Speaker 1: precursor chemicals for fentanyl flowing into the United States, much 505 00:26:56,040 --> 00:26:58,919 Speaker 1: of it coming through Mexico, and they're signaling that the 506 00:26:59,040 --> 00:27:02,280 Speaker 1: Chinese are starting to take some actions to crack down 507 00:27:02,320 --> 00:27:04,679 Speaker 1: on firms that are doing this. So I think the 508 00:27:04,760 --> 00:27:07,800 Speaker 1: hope is very modest that at least in the short term, 509 00:27:08,000 --> 00:27:10,879 Speaker 1: we can save some American lives by limiting the flow 510 00:27:10,920 --> 00:27:14,080 Speaker 1: of this. So we should expect the cooperation on the 511 00:27:14,160 --> 00:27:17,320 Speaker 1: Chinese side to turn on and off depending on how 512 00:27:17,320 --> 00:27:20,159 Speaker 1: happy they are with other aspects of the relationship. But 513 00:27:20,240 --> 00:27:22,600 Speaker 1: in the short term, if we can save American lives, 514 00:27:22,640 --> 00:27:25,240 Speaker 1: I think that's a good thing. It's also good for 515 00:27:25,280 --> 00:27:27,960 Speaker 1: our militaries to be talking to each other. That's a 516 00:27:27,960 --> 00:27:31,320 Speaker 1: pretty low bar, but we need to be communicating to 517 00:27:31,400 --> 00:27:34,840 Speaker 1: avoid some kind of misunderstanding. And then they've also announced 518 00:27:34,840 --> 00:27:38,399 Speaker 1: that we will start some type of initial discussions with 519 00:27:38,480 --> 00:27:40,960 Speaker 1: the Chinese about AI risk and safety, and of course 520 00:27:40,960 --> 00:27:43,440 Speaker 1: this is something the US is talking to a lot 521 00:27:43,440 --> 00:27:46,199 Speaker 1: of different partners and allies around the world of art about, 522 00:27:46,760 --> 00:27:48,760 Speaker 1: and they'll start doing the same with China. 523 00:27:49,480 --> 00:27:52,520 Speaker 5: All right, Eliza Tobin at the special Competitive Studies product. 524 00:27:52,520 --> 00:27:55,040 Speaker 4: Thank you for joining us here on Bloomberg Technology. 525 00:27:55,080 --> 00:27:57,120 Speaker 5: Now coming up on the show, we'll be joined by 526 00:27:57,160 --> 00:28:01,360 Speaker 5: Michelle Gonzalez, head of Microsoft Spenter, to discuss her outlook 527 00:28:01,359 --> 00:28:04,840 Speaker 5: for bench capital and interesting strategy there private markets and 528 00:28:04,880 --> 00:28:07,840 Speaker 5: a big tech name. Thus nets this is Bloomberg Technology. 529 00:28:23,320 --> 00:28:25,760 Speaker 5: Time for the VC roundup and in the news. Canadian 530 00:28:25,840 --> 00:28:29,120 Speaker 5: startup Deep Sky raised fifty five million dollars from VC 531 00:28:29,320 --> 00:28:32,920 Speaker 5: firms and governments to begin a carbon capture plant in Quebec. 532 00:28:33,400 --> 00:28:36,800 Speaker 5: Uses early stage technology aiming to suck millions of tons 533 00:28:37,000 --> 00:28:40,320 Speaker 5: of emissions out of the atmosphere and also out of 534 00:28:40,360 --> 00:28:43,800 Speaker 5: the oceans and over in Japan, Japan's state backed foundry 535 00:28:43,800 --> 00:28:47,760 Speaker 5: startup Rapidness says it will work to develop semiconductor technology 536 00:28:48,000 --> 00:28:51,840 Speaker 5: with Canada's ten storrants. The companies will exchange no how 537 00:28:52,160 --> 00:28:56,120 Speaker 5: on two nanometer logic chips to help devices access AI. 538 00:28:56,600 --> 00:29:01,320 Speaker 5: According to Rapidest, plus billionaires Zeba, Neil Rolledolf Sad and 539 00:29:01,520 --> 00:29:06,360 Speaker 5: Eric Schmidt announced a new nonprofit AI research lab in Paris. 540 00:29:06,640 --> 00:29:09,040 Speaker 5: The lab will have three hundred million euros in total 541 00:29:09,040 --> 00:29:12,280 Speaker 5: funding and produce open source research. 542 00:29:12,400 --> 00:29:14,800 Speaker 3: Caroline we've got to stick with the world of AI 543 00:29:15,240 --> 00:29:16,640 Speaker 3: labs and investment. 544 00:29:17,080 --> 00:29:19,960 Speaker 6: Is today's VC spotlight. Let's bringing Michelle Gonzalez. 545 00:29:20,080 --> 00:29:23,360 Speaker 3: She is corporate vice president, Global head of Microsoft's bench 546 00:29:23,440 --> 00:29:27,240 Speaker 3: Fund twelve. And what's so fascinating is you are aligning 547 00:29:27,320 --> 00:29:30,360 Speaker 3: with your own thesis driven view on investing, but also 548 00:29:30,400 --> 00:29:34,920 Speaker 3: basically what works alongside Microsoft's own business focus and in 549 00:29:34,960 --> 00:29:37,719 Speaker 3: many ways helps turbocharge some of the companies that you 550 00:29:37,720 --> 00:29:41,680 Speaker 3: have in your portfolio. Where is anything being done outside 551 00:29:41,720 --> 00:29:44,320 Speaker 3: of AI? I mean, is everything about artificial intelligence fee 552 00:29:44,400 --> 00:29:44,760 Speaker 3: right now? 553 00:29:45,840 --> 00:29:49,160 Speaker 11: Well, thank you Carolyn for having me here. Yes, we 554 00:29:49,360 --> 00:29:53,160 Speaker 11: view AI as a revolution on the order of mobile, 555 00:29:53,880 --> 00:29:58,040 Speaker 11: the smartphone technology, cloud computing, and the internet itself. We've 556 00:29:58,040 --> 00:30:00,120 Speaker 11: even had a few of our experts in house think 557 00:30:00,160 --> 00:30:05,680 Speaker 11: of it as the impact on society similar to electricity. 558 00:30:06,360 --> 00:30:09,600 Speaker 11: And so we are all in on AI as M 559 00:30:09,640 --> 00:30:14,320 Speaker 11: twelve's investment investment ARM. We are Microsoft's Venture Fund, a 560 00:30:14,440 --> 00:30:18,160 Speaker 11: CBC thesis driven So the other areas that we do 561 00:30:18,240 --> 00:30:22,000 Speaker 11: cover our cybersecurity. We have the GitHub Fund, which is 562 00:30:22,000 --> 00:30:26,680 Speaker 11: focused on developer tools and oh look there's our portfolio 563 00:30:26,800 --> 00:30:31,640 Speaker 11: companies we have. We invest in infrastructure, deep tech as 564 00:30:31,680 --> 00:30:33,600 Speaker 11: well as enterprise applications. 565 00:30:33,920 --> 00:30:38,520 Speaker 3: Now, it's quite an expensive place to be investing right 566 00:30:38,560 --> 00:30:42,800 Speaker 3: now for AI, amazingly considering the macroeconomy. And it's also 567 00:30:43,120 --> 00:30:46,080 Speaker 3: pretty competitive. What is your edge? I mean in lots 568 00:30:46,080 --> 00:30:48,200 Speaker 3: of ways. We started to see big corporates come in 569 00:30:48,200 --> 00:30:50,600 Speaker 3: because they can offer basically the compute power. Is that 570 00:30:50,640 --> 00:30:52,080 Speaker 3: something that really has set you apart? 571 00:30:53,120 --> 00:30:56,120 Speaker 11: Yeah, this is actually a golden age for corporate venture capital, 572 00:30:56,280 --> 00:31:00,960 Speaker 11: particularly with JENNYI. Founders are looking for access to customers. 573 00:31:01,280 --> 00:31:03,760 Speaker 11: So in the enterprise right now, there's a lot of excitement. 574 00:31:04,120 --> 00:31:07,080 Speaker 11: So we're seeing about sixty percent of enterprises say they 575 00:31:07,120 --> 00:31:10,720 Speaker 11: want to adopt AI technology and then needing to have 576 00:31:10,800 --> 00:31:13,520 Speaker 11: sort of the right partners. So that's one aspect for US. 577 00:31:13,880 --> 00:31:16,800 Speaker 11: We also, as you mentioned, have access to technology. So 578 00:31:17,000 --> 00:31:22,120 Speaker 11: we just announced AAI supercomputer dedicated GPUs for M twelve 579 00:31:22,120 --> 00:31:26,120 Speaker 11: portfolio companies, and you see this as well with Nvidia 580 00:31:26,320 --> 00:31:30,880 Speaker 11: and salesforces investments as well. So for US, we look 581 00:31:30,960 --> 00:31:35,320 Speaker 11: to connections customer access, helping these companies get go to 582 00:31:35,360 --> 00:31:39,360 Speaker 11: market ready selling to the enterprise, as well as the compute. 583 00:31:40,960 --> 00:31:43,800 Speaker 4: I want to dig in on that supercomputer. It's interesting. 584 00:31:43,880 --> 00:31:45,720 Speaker 5: Access to compute is something we talk about in the 585 00:31:45,720 --> 00:31:49,840 Speaker 5: show all the time. It's great having the supercomputer be 586 00:31:49,880 --> 00:31:53,000 Speaker 5: built in the first place. Who pays for it on 587 00:31:53,000 --> 00:31:56,640 Speaker 5: an ongoing basis so that your portfolio companies and founders 588 00:31:56,680 --> 00:31:58,360 Speaker 5: can have access to that compute. 589 00:31:59,080 --> 00:32:01,480 Speaker 11: Well, what I can tell you now, right now, we're 590 00:32:01,520 --> 00:32:05,760 Speaker 11: offering this as a way for our companies to start 591 00:32:05,760 --> 00:32:09,320 Speaker 11: experimenting with their training, and it is free for a 592 00:32:09,360 --> 00:32:12,800 Speaker 11: certain time, but we are a business, so eventually they'll 593 00:32:12,840 --> 00:32:17,560 Speaker 11: be a paying for that as well. 594 00:32:17,600 --> 00:32:20,360 Speaker 5: Michelle, real quick, give us an example of something that 595 00:32:20,400 --> 00:32:23,520 Speaker 5: you've invested in that down the road has ended up 596 00:32:23,520 --> 00:32:27,720 Speaker 5: becoming a part of Microsoft or the technology that Microsoft uses. 597 00:32:29,000 --> 00:32:32,560 Speaker 11: Yeah, So one actually recent example here is in World. 598 00:32:32,600 --> 00:32:35,960 Speaker 11: We invested two years ago. I knew the founders from 599 00:32:36,560 --> 00:32:40,040 Speaker 11: Google and this is a company that's focused on non 600 00:32:40,120 --> 00:32:44,719 Speaker 11: player characters, so AI characters in the gaming space. And 601 00:32:44,720 --> 00:32:48,760 Speaker 11: we just announced a multi year co development partnership with Microsoft. 602 00:32:49,040 --> 00:32:50,719 Speaker 11: This is about a year in the making and our 603 00:32:50,760 --> 00:32:55,160 Speaker 11: team worked very hard to ensure that this partnership came together. 604 00:32:55,240 --> 00:32:57,920 Speaker 11: This will now allow game developers on Xbox to have 605 00:32:58,080 --> 00:33:01,880 Speaker 11: access to almost an aigan co pilot, which will help 606 00:33:01,920 --> 00:33:05,000 Speaker 11: them with prompting for different scripts. And help building their 607 00:33:05,360 --> 00:33:08,280 Speaker 11: game development. So that's one example, but we have several 608 00:33:08,320 --> 00:33:09,560 Speaker 11: others well. 609 00:33:09,640 --> 00:33:12,640 Speaker 5: Corporate vice president and global head of end to Michelle Gonzalez. 610 00:33:12,640 --> 00:33:14,680 Speaker 5: When one of those examples goes big, come back on 611 00:33:14,720 --> 00:33:16,080 Speaker 5: the show tell us about it. 612 00:33:16,320 --> 00:33:24,800 Speaker 4: Definitely for your time, thank you for joining us. 613 00:33:25,920 --> 00:33:29,320 Speaker 3: The fallout from an Elon Musk post seemingly endorsing anti 614 00:33:29,320 --> 00:33:32,280 Speaker 3: semitic views, it continues to spread, whether it's Tesler investors 615 00:33:32,280 --> 00:33:35,320 Speaker 3: criticizing the billionaire or more advertisers continuing to flee his 616 00:33:35,360 --> 00:33:38,560 Speaker 3: social media platform X, including for example IBM as bringing 617 00:33:38,560 --> 00:33:41,200 Speaker 3: in Blumber Businesswee columnist Max Chafkin, who has been following 618 00:33:41,600 --> 00:33:46,520 Speaker 3: the rise the volatility around in a Musk for years now. Ultimately, 619 00:33:46,520 --> 00:33:48,040 Speaker 3: this has sort of been hiding in plain sight for 620 00:33:48,120 --> 00:33:48,760 Speaker 3: a long time. 621 00:33:49,520 --> 00:33:50,880 Speaker 6: Does this time it stick? 622 00:33:51,480 --> 00:33:51,680 Speaker 4: Yeah? 623 00:33:51,760 --> 00:33:54,080 Speaker 12: You know, Elon Musque, as you said, has kind of 624 00:33:54,160 --> 00:33:56,400 Speaker 12: had an edgy social media presence for years. 625 00:33:56,440 --> 00:33:57,680 Speaker 6: Has anyone who followed the. 626 00:33:57,920 --> 00:34:02,240 Speaker 12: You know, funding secured ruhaha five years ago knows? You know, 627 00:34:02,400 --> 00:34:04,600 Speaker 12: He's always sort of done things that are a little 628 00:34:04,600 --> 00:34:05,720 Speaker 12: bit outside of the norm. 629 00:34:06,320 --> 00:34:07,720 Speaker 4: This is something further. 630 00:34:07,520 --> 00:34:12,680 Speaker 12: This was an explicit endorsement of a anti Semitic conspiracy 631 00:34:12,680 --> 00:34:15,440 Speaker 12: theory and in fact, an anti Semitic conspiracy theory that 632 00:34:15,520 --> 00:34:17,880 Speaker 12: has been cited in you know, a prominent mass shooting. 633 00:34:17,920 --> 00:34:20,640 Speaker 12: It's the same philosophy that was used by the mass 634 00:34:20,640 --> 00:34:23,600 Speaker 12: shooter in the Tree of Life Synagogue who killed eleven people. 635 00:34:24,120 --> 00:34:26,000 Speaker 4: So certainly very serious. 636 00:34:26,480 --> 00:34:30,640 Speaker 12: We've seen responses from investors, We've seen a handful of advertisers, 637 00:34:31,400 --> 00:34:34,560 Speaker 12: you know, a lot of sort of backlash to this, 638 00:34:34,719 --> 00:34:38,520 Speaker 12: and Elon Musk, I think crucially, has not really responded. 639 00:34:38,560 --> 00:34:40,120 Speaker 12: I mean he's sort of attempted to do a little 640 00:34:40,200 --> 00:34:43,600 Speaker 12: damage control the night of, but mostly he's been tweeting 641 00:34:43,600 --> 00:34:46,720 Speaker 12: through it and more or less standing by what he said. 642 00:34:47,640 --> 00:34:50,600 Speaker 5: Well more than that, we've written to everyone and chased 643 00:34:50,640 --> 00:34:53,480 Speaker 5: every avenue we have to try and get an answer 644 00:34:53,600 --> 00:34:55,720 Speaker 5: or response from me or Musk. For what it's worth, 645 00:34:56,360 --> 00:34:59,719 Speaker 5: there's two things happening in parallel. So Media Matters post 646 00:34:59,840 --> 00:35:02,680 Speaker 5: this report on Thursday right and it shows that names 647 00:35:02,800 --> 00:35:06,680 Speaker 5: like Apple, Oracle, IBM, their ads are showing up in 648 00:35:06,719 --> 00:35:11,719 Speaker 5: timelines alongside sensitive content, for example posts that are pro 649 00:35:11,920 --> 00:35:16,440 Speaker 5: Nazi as an example, and X wrote to me this morning, Max, 650 00:35:16,440 --> 00:35:19,560 Speaker 5: we're showing their response right now, but they're basically saying 651 00:35:20,080 --> 00:35:24,879 Speaker 5: this is a function of the media matters, researchers, their 652 00:35:25,000 --> 00:35:27,960 Speaker 5: user base. In other words, this is how ad targeting works, 653 00:35:28,040 --> 00:35:31,560 Speaker 5: and therein lies a bigger technology problem about the health 654 00:35:31,600 --> 00:35:32,320 Speaker 5: of that platform. 655 00:35:32,440 --> 00:35:32,600 Speaker 4: Right. 656 00:35:33,080 --> 00:35:35,759 Speaker 12: Yeah, we should also say that, you know, Linda Yakarino 657 00:35:36,360 --> 00:35:40,960 Speaker 12: posted essentially sort of like halfway towards a sub tweet 658 00:35:40,960 --> 00:35:43,960 Speaker 12: of Elon Musk saying that the company doesn't tolerate anti 659 00:35:43,960 --> 00:35:45,240 Speaker 12: semitism of any kind. 660 00:35:46,280 --> 00:35:47,439 Speaker 4: I do think. 661 00:35:47,800 --> 00:35:49,680 Speaker 12: It's a lot harder to make the argument that you're 662 00:35:49,719 --> 00:35:54,720 Speaker 12: taking hateespe seriously when the de facto leader of the company, 663 00:35:54,719 --> 00:35:58,720 Speaker 12: you know, Linda Yacarino's CEO, but Musk is the owner 664 00:35:58,800 --> 00:36:01,560 Speaker 12: and seems to be making all the big decisions is 665 00:36:01,640 --> 00:36:06,040 Speaker 12: going out there and actually actively tweeting hate speech himself. Right, 666 00:36:06,080 --> 00:36:08,239 Speaker 12: it's harder to say you're taking this seriously, and that's 667 00:36:08,280 --> 00:36:11,120 Speaker 12: going to create a huge challenge with advertisers. 668 00:36:13,600 --> 00:36:16,040 Speaker 3: Dustin Muskowitz, for example, he was one of the co 669 00:36:16,080 --> 00:36:18,479 Speaker 3: founders of Facebook. He sort of put it out there 670 00:36:18,480 --> 00:36:21,959 Speaker 3: in a social media post saying, look, Linda Acchni needs 671 00:36:22,040 --> 00:36:25,480 Speaker 3: to fire Elo Musk as CTO as chair. Whether or 672 00:36:25,520 --> 00:36:28,759 Speaker 3: not that's in any way feasibly possible. But at what 673 00:36:28,880 --> 00:36:32,840 Speaker 3: point do you think, if ever, this might have ramifications 674 00:36:32,880 --> 00:36:37,400 Speaker 3: on his holding of senior executive titles across his incredibly 675 00:36:37,840 --> 00:36:38,920 Speaker 3: successful businesses. 676 00:36:39,280 --> 00:36:41,799 Speaker 12: Well, I think each of his companies are going to 677 00:36:41,840 --> 00:36:42,680 Speaker 12: be a little bit different. 678 00:36:42,719 --> 00:36:42,880 Speaker 4: You know. 679 00:36:42,920 --> 00:36:45,400 Speaker 12: Tesla, of course, is a publicly traded company with a 680 00:36:45,480 --> 00:36:49,160 Speaker 12: huge customer base. Now that customer base has traditionally been 681 00:36:49,600 --> 00:36:53,160 Speaker 12: left of center, right, these are environmentalists, and you got 682 00:36:53,200 --> 00:36:55,360 Speaker 12: to think that this is going to have an impact 683 00:36:55,600 --> 00:37:01,040 Speaker 12: on Tesla's already significant challenges generating Jaman and for its cars. 684 00:37:01,239 --> 00:37:04,880 Speaker 12: SpaceX is a government contractor, so you ask, like, is 685 00:37:04,920 --> 00:37:08,640 Speaker 12: the Biden administration are they Are they gonna They've already 686 00:37:08,320 --> 00:37:11,480 Speaker 12: they've put out a statement. You know, I suppose it 687 00:37:11,560 --> 00:37:15,120 Speaker 12: possible to go further. I do think at some point 688 00:37:15,480 --> 00:37:17,680 Speaker 12: we will see a response from us, because the volume 689 00:37:18,280 --> 00:37:21,319 Speaker 12: is getting up there, but it's telling. I'd say that 690 00:37:21,400 --> 00:37:22,359 Speaker 12: it hasn't happened yet. 691 00:37:23,800 --> 00:37:25,120 Speaker 4: All right, Bloombers match Traffckin. 692 00:37:25,200 --> 00:37:27,760 Speaker 5: That has been the top story of the last twenty 693 00:37:27,800 --> 00:37:29,480 Speaker 5: four hours. It is not the only story in the 694 00:37:29,480 --> 00:37:34,239 Speaker 5: world of Elon. SpaceX has a significant launch planned for Saturday. 695 00:37:34,600 --> 00:37:36,520 Speaker 4: Starship will do a full attempt. 696 00:37:36,320 --> 00:37:40,319 Speaker 5: Number two joining us Bloomberg's Lauren Grush and Lauren, what 697 00:37:40,520 --> 00:37:44,400 Speaker 5: is significant about this attempt and what are we expecting 698 00:37:44,440 --> 00:37:44,840 Speaker 5: to happen? 699 00:37:46,239 --> 00:37:48,920 Speaker 13: Sure, So, as you mentioned, it's the second time ever 700 00:37:49,120 --> 00:37:52,800 Speaker 13: that SpaceX will be launching a fully stacked starship system. 701 00:37:52,880 --> 00:37:55,560 Speaker 13: So that's the starship space Trap on top of its 702 00:37:55,680 --> 00:37:59,359 Speaker 13: massive super heavy booster. And you know, I can't tell 703 00:37:59,360 --> 00:38:02,360 Speaker 13: you what we effect last time when it launched. Elon 704 00:38:02,520 --> 00:38:06,759 Speaker 13: mentioned you know, excitement would be guaranteed. Preferably, we're looking 705 00:38:06,800 --> 00:38:09,200 Speaker 13: to see them do quite a bit better than last time. 706 00:38:09,480 --> 00:38:11,360 Speaker 6: If you watch the last the first. 707 00:38:11,200 --> 00:38:15,120 Speaker 13: Launch attempt, they did, you know, have a few engine 708 00:38:15,120 --> 00:38:18,160 Speaker 13: failures and then the rocket started spinning out of control 709 00:38:18,400 --> 00:38:21,520 Speaker 13: and SpaceX was forced to intentionally destroy it. So the goal, 710 00:38:21,560 --> 00:38:23,800 Speaker 13: hopefully is to get a little farther than last time. 711 00:38:24,920 --> 00:38:28,840 Speaker 5: Lauren just outlined the rocket science from from countdown ten nine, eight, 712 00:38:29,200 --> 00:38:32,440 Speaker 5: five forty to one zero lift off, what happens thereafter? 713 00:38:33,560 --> 00:38:39,080 Speaker 13: Sure, So, at liftoff, presumably all thirty three Raptor engines 714 00:38:39,120 --> 00:38:42,439 Speaker 13: at the base of super Heavy will ignite, lifting off 715 00:38:42,480 --> 00:38:45,640 Speaker 13: the entire rocket. Roughly two and a half minutes into flight. 716 00:38:45,640 --> 00:38:48,160 Speaker 13: We're going to be looking at this thing called stage separation, 717 00:38:48,360 --> 00:38:52,279 Speaker 13: so that's super heavy and Starship separating, and something that 718 00:38:52,320 --> 00:38:54,920 Speaker 13: SpaceX will be testing on this flight is known as 719 00:38:55,000 --> 00:38:58,600 Speaker 13: hot staging, So the engines on the Starship spacecraft will 720 00:38:58,640 --> 00:39:02,360 Speaker 13: ignite briefly while that super heavy booster is still attached, 721 00:39:02,600 --> 00:39:04,720 Speaker 13: giving it a bit of a kick and pushing it away. 722 00:39:05,080 --> 00:39:07,920 Speaker 13: That's something that SpaceX changed from the first launch and 723 00:39:07,960 --> 00:39:10,560 Speaker 13: it's the only thing. They can only test it during flight, 724 00:39:10,640 --> 00:39:12,840 Speaker 13: so that's going to be something exciting to watch. And 725 00:39:12,880 --> 00:39:15,640 Speaker 13: then if all goes well, hopefully Starship we'll continue on 726 00:39:16,040 --> 00:39:19,440 Speaker 13: reaching near orbit and doing almost a full lap around 727 00:39:19,440 --> 00:39:22,320 Speaker 13: the Earth before it comes down off the coast of Hawaii. 728 00:39:22,480 --> 00:39:24,719 Speaker 6: Right, all right, gosh, we thank you so much. 729 00:39:24,760 --> 00:39:26,600 Speaker 3: That does it for the decision this edition of BlueBag 730 00:39:26,600 --> 00:39:27,239 Speaker 3: Technology yet 731 00:39:28,200 --> 00:39:30,320 Speaker 4: Yeah, recap the podcast, right, we get yours