WEBVTT - Intel's Gelsinger Retires, Retailers Ready for Cyber Monday 0:00:01.600 --> 0:00:04.360 From the heart of where Innovation of Money and Power 0:00:04.480 --> 0:00:06.880 Collie in Silicon Valley, NBN. 0:00:07.200 --> 0:00:08.920 This is Bloomberg. 0:00:08.400 --> 0:00:11.719 Technology with Caroline Hyde and Ed Ludlove. 0:00:24.920 --> 0:00:27.480 Live from New York. This is Bloomberg Technology coming up. 0:00:27.520 --> 0:00:31.479 Intel shares rise a CEO Pat Gelsinger leaves the company 0:00:31.560 --> 0:00:35.400 after a failed turnaround effort plus Tesla and byd ramp 0:00:35.479 --> 0:00:38.720 up discounts and incentives in China in a final push 0:00:38.760 --> 0:00:42.440 to meet annual sales targets and tenstorrant NAB's a two 0:00:42.520 --> 0:00:45.680 point six billion dollar valuation off the backing from Jeff Bezos. 0:00:45.720 --> 0:00:48.000 And in Nvidia, we sit down with the CEO and 0:00:48.080 --> 0:00:51.519 chip design legend Jim Keller later this hour. But first 0:00:52.320 --> 0:00:54.880 check on these markets, a check in on Intel. We 0:00:55.000 --> 0:00:58.240 dive straight there. We are more than three percent on 0:00:58.320 --> 0:01:00.800 the back of the news that Intel CEOPA Gelsinger is 0:01:00.920 --> 0:01:03.840 leaving the company and is indeed going to be two 0:01:04.200 --> 0:01:07.200 interim CEOs that take the helm for the time being, 0:01:07.280 --> 0:01:11.440 CFO David Sinsner Michelle Johnston Helpo's going to be serving 0:01:11.480 --> 0:01:14.400 as the interim leaders as the board searchers for a replacement. 0:01:14.720 --> 0:01:18.440 This after, of course, his departure is potentially signaling more 0:01:18.480 --> 0:01:19.920 strategic shifts at the business. 0:01:20.600 --> 0:01:22.640 The investor base collaps. 0:01:22.360 --> 0:01:24.880 It slightly, but we get into the details with Man 0:01:24.880 --> 0:01:26.360 Deep Singer, BlueBag Intelligence. 0:01:27.000 --> 0:01:29.360 Look, many would say they're surprised. 0:01:29.400 --> 0:01:31.680 Many would say, Look, the August numbers that came from 0:01:31.680 --> 0:01:34.440 Intel just showed that this turnaround, this restruction was going 0:01:34.480 --> 0:01:37.240 to be so painful, and the boarders lost confidence. 0:01:37.560 --> 0:01:40.200 Yeah, and look, I think it probably suggests that the 0:01:40.319 --> 0:01:44.120 numbers for four Q don't look very good either. So clearly, 0:01:44.280 --> 0:01:47.480 you know, the gross margin going down, and the foundry 0:01:47.520 --> 0:01:50.440 business was a big contributor to that because even though 0:01:50.480 --> 0:01:53.840 you know, Intel has about eighteen billion dollars of foundry revenue, 0:01:54.120 --> 0:01:57.240 it's negative gross margins. And when you think about that 0:01:57.320 --> 0:02:01.120 eighteen billion dollar number, how much of that business comes 0:02:01.160 --> 0:02:04.560 from the outside, Like they don't have any big customers 0:02:04.600 --> 0:02:06.760 like TSMC does. You know, when it comes to the 0:02:07.120 --> 0:02:09.960 foundry business, it's mostly internal when you think about that 0:02:10.040 --> 0:02:12.800 eighteen billion dollar number. So that's where you know, the 0:02:12.880 --> 0:02:17.040 question marks were raised around Intel's capex of around twenty 0:02:17.040 --> 0:02:19.639 five billion, which is the major reason why they are, 0:02:19.720 --> 0:02:23.720 you know, burning fifteen billion dollars a year, and I 0:02:23.760 --> 0:02:27.000 think pat had about four years to decide on the 0:02:27.040 --> 0:02:30.640 fate of the foundry business. He actually wanted to acquire 0:02:30.680 --> 0:02:34.280 power Semis that didn't happen because of regulatory hurdles. So 0:02:34.280 --> 0:02:37.720 you have to ask yourself was focusing on foundry business 0:02:37.720 --> 0:02:40.400 the right strategy and the answer probably is not, given 0:02:40.480 --> 0:02:43.080 it hasn't turned around in the last four years. 0:02:42.840 --> 0:02:45.079 And yet the US government is handing them a lot 0:02:45.080 --> 0:02:47.720 of money to build chicks to be the future of 0:02:47.800 --> 0:02:48.480 on shoring. 0:02:49.000 --> 0:02:50.520 How resilient does that look? 0:02:50.560 --> 0:02:54.240 How resilient does well trying to do both manufacturing and 0:02:54.280 --> 0:02:55.320 design look for the business. 0:02:55.400 --> 0:02:58.080 Yes, so you're absolutely right the government wants them to 0:02:58.120 --> 0:03:01.440 succeed on the manufacturing side. The problem is the optics here. 0:03:01.760 --> 0:03:05.360 Why would an Amazon or a Microsoft, or an Nvidia 0:03:05.400 --> 0:03:08.200 for that matter, go to Intel foundry when they know 0:03:08.280 --> 0:03:11.160 Intel is a competitor on the design side. And that's 0:03:11.200 --> 0:03:15.919 where you know, divesting that foundry business will actually make it, 0:03:16.120 --> 0:03:20.680 you know, more palatable for competitors like Amazon and Nvidia 0:03:20.720 --> 0:03:24.080 to use some portion of Intel's foundry, similar to what 0:03:24.280 --> 0:03:27.120 MD did with Global Foundaries. I mean, Global Foundry has 0:03:27.160 --> 0:03:30.040 a lot of business outside of MD now because it's 0:03:30.080 --> 0:03:33.800 an independent entity. So that's where the gross market profile 0:03:33.880 --> 0:03:37.560 will still be a lot lower for the foundry business, 0:03:37.600 --> 0:03:40.880 but at least the core Intel business, which is how 0:03:41.000 --> 0:03:43.320 investors look at some of the parts of Intel and 0:03:43.360 --> 0:03:46.680 they say, the core client PC business is still where 0:03:46.760 --> 0:03:49.800 they dominate. I mean, look the server side, they are 0:03:50.000 --> 0:03:53.320 leading share to Nvidia, but more than fifty percent of 0:03:53.360 --> 0:03:56.920 the revenue still comes from core PCs. And even though 0:03:56.920 --> 0:04:02.120 it's a saturated market, the AIVA will help spur refreshed 0:04:02.120 --> 0:04:04.080 cycle at some point. We don't know it's going to 0:04:04.120 --> 0:04:06.800 be first half or second half, but it will come. 0:04:07.240 --> 0:04:08.800 And it will come under new leadership. 0:04:09.040 --> 0:04:11.520 Mande Singh, We thank you so much on all things 0:04:11.600 --> 0:04:13.520 Intel will have plenty more of that in a moment. 0:04:13.560 --> 0:04:15.480 But let's just talk a little bit more about the 0:04:15.600 --> 0:04:19.080 US focus on chips, because the Biden administration unveiled new 0:04:19.120 --> 0:04:22.320 restrictions on China's access to vital components for chips and 0:04:22.440 --> 0:04:26.600 artificial intelligence, and the Department of Commerce slapping additional curbs 0:04:26.600 --> 0:04:29.440 on the sale of high bandwidth memory and chip making gear. 0:04:29.600 --> 0:04:32.400 It's impacting twenty seven types of chip design and fabrication tools. 0:04:32.440 --> 0:04:35.239 It's also blacklisted one hundred and forty more Chinese entities 0:04:35.520 --> 0:04:37.960 than it accused of acting on Beijing's behalf. Blomberg's and 0:04:38.000 --> 0:04:41.760 mackenzie Hawkins had a busy Thanksgiving period reporting all this out. 0:04:41.800 --> 0:04:44.640 McKenzie and just go first and foremost as to whether 0:04:44.680 --> 0:04:48.200 this actually looked perhaps slightly better to the market than 0:04:48.240 --> 0:04:49.320 some had anticipated. 0:04:51.200 --> 0:04:53.920 So this is what's become kind of the third annual 0:04:54.000 --> 0:04:57.040 update to these sweeping outport controls of the Biden administration 0:04:57.120 --> 0:04:59.360 has levied on companies trying to sell chips and chip 0:04:59.360 --> 0:05:02.520 making gear to China. But the latest controls, which were 0:05:02.560 --> 0:05:06.480 unveiled this morning, came in slightly softer than some proposals 0:05:06.520 --> 0:05:09.720 that officials had floated earlier this year. They didn't sanction 0:05:09.880 --> 0:05:12.720 a handful of key Chinese companies with ties to Huawei 0:05:12.800 --> 0:05:16.479 that they had discussed sanctioning, and they also exempted important allies, 0:05:16.600 --> 0:05:18.920 notably Japan and the Netherlands, which are home to of 0:05:19.000 --> 0:05:22.400 the most important ship tool making companies, from rules that 0:05:22.520 --> 0:05:25.120 restrict additional types of chip making gear from being sent 0:05:25.160 --> 0:05:26.520 to China. 0:05:26.560 --> 0:05:30.279 All of this context is the US trying to limit 0:05:30.440 --> 0:05:33.920 capabilities over in China, trying to home grow a supply 0:05:34.040 --> 0:05:36.920 chain here in the United States, which does involve Intel 0:05:37.040 --> 0:05:39.279 just going back to that story of the day, mackenzie, 0:05:39.360 --> 0:05:41.240 how much do you think the US government is going 0:05:41.320 --> 0:05:44.400 to be upended by change of leadership? How much has 0:05:44.440 --> 0:05:46.560 Intel benefited from the CHIPSACK for example. 0:05:48.279 --> 0:05:52.400 So Intel actually last week solidified a deal for seven 0:05:52.440 --> 0:05:55.159 point eight billion dollars in funding from the CHIPSAC, which 0:05:55.160 --> 0:05:57.920 is this broader fifty two billion dollar program to bring 0:05:58.000 --> 0:06:00.840 chip manufacturing back to the United States. The company i 0:06:00.880 --> 0:06:03.480 said it's committed to its US expansion plans, which include 0:06:03.520 --> 0:06:06.599 more than one hundred billion dollars in investment, ninety billion 0:06:06.600 --> 0:06:08.239 of which will come by the end of the decade, 0:06:08.640 --> 0:06:12.359 and plans to execute on factories in Arizona, Ohio, Oregon, 0:06:12.440 --> 0:06:16.920 and New Mexico. Galsinger's departure shouldn't change the company's plans 0:06:16.960 --> 0:06:18.760 as we see it now, but of course a new 0:06:18.800 --> 0:06:21.560 CEO will have to decide whether to pursue options that 0:06:21.600 --> 0:06:24.760 Galsinger had left off the table, and the US government 0:06:24.800 --> 0:06:25.640 we're watching that closely. 0:06:26.120 --> 0:06:29.400 They will be McKenzie Hawkins, thanks for breaking it all down. Meanwhile, 0:06:29.400 --> 0:06:33.120 we want to get the whole circumference of the chip 0:06:33.160 --> 0:06:36.040 sector for you now with Pierre Faragu from New Street Research. 0:06:36.120 --> 0:06:40.560 Your first take on the announcement of Pat Gelsinger retiring. 0:06:40.560 --> 0:06:41.359 Were you surprised? 0:06:42.480 --> 0:06:46.320 I was very surprised by the abrupt news, like retiring today. 0:06:46.360 --> 0:06:51.359 It is no transition period, so difficult, a difficult situation. 0:06:51.480 --> 0:06:54.960 We knew the board was stands since the summer urum 0:06:55.000 --> 0:06:59.719 early and the CEO of Cadence resigned from the board 0:06:59.760 --> 0:07:03.320 of over the summer, and it was like reflecting like 0:07:03.360 --> 0:07:06.919 difficult conversations. And so it probably looks like, you know, 0:07:07.480 --> 0:07:11.160 Pat loss the continents of the board or didn't get 0:07:11.160 --> 0:07:13.280 the support of the boat for his strategy anymore. And 0:07:14.040 --> 0:07:18.560 basically probably and uh decided to leave abruptly. So so 0:07:18.600 --> 0:07:20.840 that was a surprise now that you know, we are 0:07:20.840 --> 0:07:26.480 four years into the turnaround. Bad direction was let's double 0:07:26.560 --> 0:07:29.920 down and Intel's capabilities in manufacturing. Let's make Intel like 0:07:29.960 --> 0:07:35.760 a leading manufacturer. Let's go large, Uh, you know, go 0:07:36.280 --> 0:07:39.240 big and you know, leverage at a maximum. The political 0:07:39.280 --> 0:07:42.880 support will have to do that. So that was the plan. 0:07:42.960 --> 0:07:47.760 And the plan failed basically because TSMC's model cannot be 0:07:47.960 --> 0:07:51.280 competed against. I think it's that's so we've had from 0:07:51.320 --> 0:07:55.280 the beginning, so Intel being able to preserve manufacturing capabilities yes, 0:07:55.760 --> 0:07:59.559 Intel being like a scalable like like a large scale 0:07:59.600 --> 0:08:05.120 competitor to TSMC is probably not possible for like scale 0:08:05.200 --> 0:08:09.560 and experience reasons, and that's why things failed. 0:08:10.960 --> 0:08:14.520 In August on that very bleak announcement of numbers that 0:08:14.560 --> 0:08:17.880 we had and ish disastrous sell off in the shares. 0:08:18.440 --> 0:08:19.520 Was this restructuring. 0:08:19.560 --> 0:08:21.440 It involved a lot of job losses, but it did 0:08:21.520 --> 0:08:24.480 involve also the sort of peeling away of the foundry 0:08:24.480 --> 0:08:27.320 business to be able to be managed sort of separately 0:08:27.360 --> 0:08:30.880 but alongside Intel. Does that stay or do we start 0:08:30.880 --> 0:08:34.680 to see actual purchasing coming from well with the reports 0:08:34.679 --> 0:08:38.359 previously of Qualcom being interested even the chip designer. 0:08:38.080 --> 0:08:42.559 ARM So the situation is going to be very very 0:08:42.600 --> 0:08:45.920 fluid for quite some time for sure. As you mentioned 0:08:45.960 --> 0:08:49.680 last summer, you know, the word was say to be 0:08:49.720 --> 0:08:55.120 fighting of you know, activist activist Shoulder is getting prepared 0:08:55.160 --> 0:09:01.880 to fight of activity smooth. The stitution is of course 0:09:01.960 --> 0:09:07.040 very complex. On one hand, Intel has manufacturing capabilities. Intel 0:09:07.080 --> 0:09:13.320 has manufacturing capabilities onshore and owned buy like a US 0:09:13.480 --> 0:09:16.560 control company. So it's a very very unique asset, extremely 0:09:16.640 --> 0:09:20.920 valuable in today's cheer political context, and I think Intel 0:09:20.960 --> 0:09:24.160 needs to continue to be able to to build on that. 0:09:24.400 --> 0:09:26.720 So of course there is a tempting, tempting route, which 0:09:26.760 --> 0:09:29.120 is to say, okay, maybe Quale common Intel could merge 0:09:29.200 --> 0:09:32.880 or Qualcome to biot Intel or try and trigger the 0:09:32.880 --> 0:09:36.760 consolidation of that type. I don't see that as good 0:09:37.080 --> 0:09:40.439 as a good opportunity. It's difficult to generate synergies between 0:09:40.480 --> 0:09:44.240 Quale governing Intel. The chips qual Come do are very 0:09:44.240 --> 0:09:49.319 different from the Intel ships. Manufacturing is a complex business, 0:09:49.360 --> 0:09:53.720 so I'm not super you know, that's an area that 0:09:53.840 --> 0:09:55.280 scares me more than anything else. 0:09:55.320 --> 0:09:56.520 You know, bad many. 0:09:56.320 --> 0:10:00.400 Decisions typically can arrive in a situation like that. What's 0:10:00.440 --> 0:10:02.640 more interesting, I think is to be like, okay, how 0:10:02.640 --> 0:10:06.600 can we make sure we create a sustainable US owned 0:10:06.720 --> 0:10:10.640 on us SO manufacturing capability. And if you do that, 0:10:10.800 --> 0:10:12.599 you have quody to admit that you're not going to 0:10:12.640 --> 0:10:15.720 compete with TSMC. You need to partner with TSMC, right, 0:10:16.880 --> 0:10:19.160 you need to find other very large partners that are 0:10:19.160 --> 0:10:20.839 going to super oft to And of course the one 0:10:20.880 --> 0:10:23.719 that comes to mind that has that those maybe to 0:10:24.360 --> 0:10:27.480 the US is in video. So you know, like Engagent 0:10:27.520 --> 0:10:31.360 partnering around manufacturing with TSMC as a partner and Vidia 0:10:31.360 --> 0:10:34.240 as a partner would be a much more interesting route 0:10:34.240 --> 0:10:35.160 to pursue from here. 0:10:35.679 --> 0:10:39.360 There is ongoing breaking news around this story and Bloomberg 0:10:39.440 --> 0:10:42.400 leading the charge with how Pat Gilsinger was inteed forced 0:10:42.400 --> 0:10:46.400 out after the board grew frustrated. The biggest frustration Pier 0:10:46.720 --> 0:10:50.760 was that they missed the AI evolution jumping on and 0:10:50.800 --> 0:10:53.319 being able to ensure that what they produced, which. 0:10:53.160 --> 0:10:55.319 Is GOWI, was able to compete. 0:10:55.559 --> 0:10:58.000 I mean, they're likely to miss that five hundred million 0:10:58.040 --> 0:11:00.839 dollar target for this year when very is busily making 0:11:00.840 --> 0:11:02.079 about one hundred billion a year. 0:11:04.200 --> 0:11:07.319 Yeah, I think it's the frustration came from the lack 0:11:07.400 --> 0:11:11.960 of prudence of the initial plan going to be too large, 0:11:12.760 --> 0:11:15.439 assuming you know, demand would follow as long as you 0:11:15.920 --> 0:11:20.800 can pull together like quality, quality, supply. And yes, the 0:11:20.880 --> 0:11:27.520 underlying causes that uh Intel ended up not being in 0:11:27.600 --> 0:11:30.720 the growing part of the market, and namely it was 0:11:31.640 --> 0:11:36.920 last summer was particularly abrupt, like you see, like the 0:11:37.080 --> 0:11:40.880 complete failure of the Intel AI chips and the fact 0:11:40.920 --> 0:11:42.720 that they would not be at all in the market. 0:11:43.280 --> 0:11:48.199 Him is actually carving out a fairly sustainable niche positioning 0:11:48.240 --> 0:11:50.880 in that market. So that was part of it, But 0:11:50.920 --> 0:11:55.199 I think part probably stuck too much to his initial 0:11:55.240 --> 0:11:58.000 plan with like a very ambitious, very large scale plan 0:11:59.080 --> 0:12:02.600 and should have a year or eighteen months ago thought 0:12:02.679 --> 0:12:06.840 about like you know, changing tag to smaller and more 0:12:06.840 --> 0:12:09.520 colarborative with other players in the market. 0:12:09.600 --> 0:12:13.960 Because yeah, Peah, I mean much of this predated the 0:12:14.000 --> 0:12:16.800 pack coming back in twenty twenty one. That course was 0:12:16.840 --> 0:12:20.160 already kind of paved, and he didn't reorientate quickly enough. 0:12:20.600 --> 0:12:23.360 Where now in terms of leadership and in terms of 0:12:23.440 --> 0:12:26.160 Intel's place in the ecosystem very quickly, please. 0:12:27.120 --> 0:12:31.240 So I think INTE could be specialized in manufacturing in 0:12:31.280 --> 0:12:38.200 the US under US control and ownership and collaborate with 0:12:38.280 --> 0:12:41.600 the rest of the industry instead of instead of competing, 0:12:41.640 --> 0:12:46.840 I think in like smaller scale, remaining like keeping a 0:12:46.840 --> 0:12:49.320 position at the leading edge and leveraging the products of 0:12:49.400 --> 0:12:51.800 Intel like the PC ships and the servitude that are 0:12:51.800 --> 0:12:53.920 still very good and in very high demand. 0:12:54.200 --> 0:12:57.880 Right, Yeah, thank you so much for lending your expertise today, 0:12:57.880 --> 0:13:00.120 Pierre for Ago on New Street research and all things 0:13:00.120 --> 0:13:03.040 intell and chips. Meanwhile, sticking with the error of AI, 0:13:03.880 --> 0:13:06.880 shares of super Micro absolutely soaring today. The company says 0:13:07.200 --> 0:13:10.000 that an external review of its business found no evidence 0:13:10.040 --> 0:13:12.480 of wrongdoing and the company will appoint a new CFO. 0:13:12.559 --> 0:13:14.800 This follows, of course, that tumultuous year for super Micro, 0:13:14.880 --> 0:13:18.600 which is also facing USDOJ probe following a report from 0:13:18.640 --> 0:13:21.720 short seller Hindenburg Research. This, of course, is a company 0:13:21.760 --> 0:13:24.319 that uses in video chips within its servers that it 0:13:24.400 --> 0:13:26.920 sells on two key clients for up thirteen fourteen percent 0:13:27.120 --> 0:13:29.120 over the last two training days. Meanwhile, coming up, we're 0:13:29.120 --> 0:13:31.120 going to break down the Black Friday sales data and 0:13:31.240 --> 0:13:34.880 trends for Cyber Monday. Mick max Richel topograph stick with us. 0:13:34.880 --> 0:13:48.079 There's a bluebog technology. Of course, Today is Cyber Monday, 0:13:48.240 --> 0:13:51.160 and Adobe expects consumers will spend a record thirteen point 0:13:51.160 --> 0:13:54.920 two billion dollars, up six percent year on year. Online 0:13:54.960 --> 0:13:57.959 spending is expected to peak, especially between eight and ten 0:13:58.040 --> 0:14:01.400 pm later tonight, with fifteen point seven million dollars spent 0:14:01.520 --> 0:14:02.600 every single minute. 0:14:02.600 --> 0:14:03.280 That's Eastern time. 0:14:03.280 --> 0:14:05.240 Of course, let's look at all of that Anergy, what 0:14:05.320 --> 0:14:06.960 happened on Black Friday and the weekend? 0:14:07.040 --> 0:14:09.080 Rachel tipographs with US founder and c here mcmack. 0:14:09.200 --> 0:14:12.000 It's an e commerce marketing platform for multi channel brands. 0:14:12.360 --> 0:14:14.400 It feels like a big year I'm certainly getting hit 0:14:14.400 --> 0:14:16.000 with a lot of marketing. Is it feeling that way 0:14:16.000 --> 0:14:16.200 for you? 0:14:16.320 --> 0:14:16.640 Rachel? 0:14:18.840 --> 0:14:19.280 It is. 0:14:19.520 --> 0:14:22.240 You know, despite what's happening in the economy, consumers are 0:14:22.280 --> 0:14:24.880 showing up to really save I want to say spend, 0:14:24.960 --> 0:14:26.680 but it's really about savings right now. 0:14:27.080 --> 0:14:28.000 Okay, that's interesting. 0:14:28.040 --> 0:14:30.120 So it's more about the deal making and how are 0:14:30.200 --> 0:14:33.680 companies managing to access those consumers right now? What innovative 0:14:33.680 --> 0:14:41.160 ways are they using to market across various platforms. Oh, 0:14:41.240 --> 0:14:42.680 do we have some technological issues? 0:14:42.760 --> 0:14:43.000 Rachel? 0:14:43.000 --> 0:14:46.160 Absolutely? You know, when we look at what happened from 0:14:46.480 --> 0:14:49.440 stinks hello, can you hear me? 0:14:50.480 --> 0:14:53.440 Apologies, there's a big delay, Rachel, Do carry on? 0:14:54.320 --> 0:15:00.120 Hello. When you look at what happened between things thank 0:15:00.240 --> 0:15:04.280 Giving and Sunday, the majority of traffic came from social, 0:15:05.240 --> 0:15:09.760 Meta being number one, TikTok being number two, and YouTube 0:15:09.800 --> 0:15:14.000 being number three. If we were looking at results from Gear, 0:15:14.400 --> 0:15:17.560 YouTube wouldn't have made the top three. What's really clear 0:15:17.680 --> 0:15:21.200 right now is brands are recognizing that social is the 0:15:21.240 --> 0:15:26.640 third shelf and wherever short video and creators are, that's 0:15:26.680 --> 0:15:29.920 where brands are investing their dollars in their time to 0:15:30.120 --> 0:15:33.600 gain mind share to then drive traffic to their Black 0:15:33.600 --> 0:15:34.840 Friday deals. 0:15:35.880 --> 0:15:40.040 How Rachel all the companies that are doing well, the 0:15:40.240 --> 0:15:42.320 likes of Walmot we sold release stealing a lot of 0:15:42.400 --> 0:15:45.000 the marketshed and the targets, how are they tracking it? 0:15:45.080 --> 0:15:47.280 How are they making sure that they've got the measurements 0:15:47.720 --> 0:15:50.000 that proves that the investment's making sense to them? 0:15:54.040 --> 0:15:56.920 Absolutely. I mean, if you look at Amazon's earnings or 0:15:56.960 --> 0:16:00.640 Walmart's earnings, it's very clear that these reach tailors are 0:16:00.680 --> 0:16:04.560 now becoming data businesses. They're making eighty to ninety percent 0:16:04.960 --> 0:16:08.000 margins on selling data as a service, and we all 0:16:08.040 --> 0:16:11.640 know they're not making those margins on selling physical goods. 0:16:12.320 --> 0:16:16.200 So when it comes to measurement, major brands are first 0:16:16.240 --> 0:16:20.280 relying on retailer's first party data, but then they have 0:16:20.360 --> 0:16:23.000 to marry that to third party sources because we can't 0:16:23.040 --> 0:16:25.800 all be grading our own homework. So they're turning to 0:16:25.840 --> 0:16:29.560 companies like Mickmac, Adobe Circana, which was the merger of 0:16:29.600 --> 0:16:34.560 Iri NPD to really validate what's happening between Mickmac's data 0:16:34.600 --> 0:16:37.080 and Adobe's data. We're pretty much seeing the same thing. 0:16:37.640 --> 0:16:41.560 In Mickmac. We've seen a one percent one percent increase 0:16:41.640 --> 0:16:45.400 in conversion rates during the Black Friday weekend this year 0:16:45.520 --> 0:16:48.840 compared to last year. If you extrapolate that to what 0:16:48.880 --> 0:16:52.320 Adobe seeing Adobe sawn increase in a billion dollars in revenue, 0:16:52.680 --> 0:16:56.720 that one percent increase in conversision rate marries that one 0:16:56.840 --> 0:17:00.720 billion dollar increase in revenue. So by marrying moremultiple sources 0:17:00.720 --> 0:17:02.840 of truth, we can all start to see the picture 0:17:03.160 --> 0:17:06.040 that consumers showed up. They were really choosy with their 0:17:06.160 --> 0:17:09.399 dollars and they turned to places like Walmart because that's 0:17:09.480 --> 0:17:12.159 where the value is and that's also where breadth of 0:17:12.240 --> 0:17:14.320 merchandise is this holiday season. 0:17:15.320 --> 0:17:16.880 One stop shop is what people are liking. 0:17:16.960 --> 0:17:19.160 Rachel topograph for me, Thank you so much for the expertise, 0:17:19.200 --> 0:17:20.320 CEO of Mick Mac. 0:17:27.920 --> 0:17:30.520 Time now for talking tech. First up, five Canadian news 0:17:30.600 --> 0:17:32.119 media publishers. 0:17:32.280 --> 0:17:35.479 They've sued open ai for breaching copyright, alleging the company 0:17:35.640 --> 0:17:38.639 scraps content to train its AI products. According to an 0:17:38.680 --> 0:17:42.880 open ai spokesperson, is models are trained unquote publicly available data. 0:17:42.640 --> 0:17:44.240 Grounded in fair use. 0:17:44.760 --> 0:17:47.639 Plus Elil Musk has asked a federal court to block 0:17:47.680 --> 0:17:51.199 open ai from pursuing an illegal quote conversion to a 0:17:51.240 --> 0:17:55.520 for profit business. In his latest court filing, Musk repeated 0:17:55.560 --> 0:17:57.960 earlier claims that open Ai broke its promise to him 0:17:58.000 --> 0:18:01.159 and abandoned its founding purpose as a charity, and it 0:18:01.240 --> 0:18:04.320 accepted backing for Microsoft back in twenty nineteen. And In 0:18:04.400 --> 0:18:06.640 Video CEO Jenson Wang is set to meet the Thai 0:18:06.720 --> 0:18:09.400 Prime Minister on Tuesday. The two were expected to discuss 0:18:09.560 --> 0:18:13.240 investment plans and cooperation within the Thai government. The meeting 0:18:13.280 --> 0:18:15.879 comes after and Video announced a buildout of AI data 0:18:15.880 --> 0:18:20.720 centers and manufacturing in Thailand back in October. Now, sticking 0:18:20.760 --> 0:18:23.119 with all things Asia, and let's just talk about China 0:18:23.160 --> 0:18:26.840 and ev makers, in particular Tesla BUYD. We're getting data 0:18:26.880 --> 0:18:30.480 that they've unleashed even more discounts and incentives in China. 0:18:30.600 --> 0:18:32.920 This is a final push to meet annual sales targets. 0:18:33.200 --> 0:18:36.159 Let's break down with Bloomberg's David Welch and look what 0:18:36.200 --> 0:18:39.320 are we getting on offer here in China. 0:18:39.440 --> 0:18:42.440 I think they've been fighting for market share all year long, 0:18:42.480 --> 0:18:44.600 and now everyone's trying to hit their sales goals as 0:18:44.640 --> 0:18:47.439 we get into the last month. So reminds me when 0:18:47.480 --> 0:18:49.800 I looked at some of these deals as Toyota's December, 0:18:49.800 --> 0:18:51.840 to remember that they have every year in the US, 0:18:51.880 --> 0:18:54.760 but this is electric vehicles in China, so zero percent 0:18:54.840 --> 0:18:58.159 plus rebates on some Tesla models. They'd already announced some 0:18:58.200 --> 0:19:01.879 discounts last week, and I think model why BYD has 0:19:01.920 --> 0:19:05.320 been doing this for a while, basically launching a price 0:19:05.359 --> 0:19:08.520 war to put pressure on their competitors gain market share. 0:19:08.880 --> 0:19:11.960 Byd is one of the few EV makers in China. 0:19:12.040 --> 0:19:15.080 The Chinese makes that is that even makes money, so 0:19:15.320 --> 0:19:17.000 it's going to put a lot of pressure on its 0:19:17.080 --> 0:19:20.359 domestic rivals. And then look, Tesla's trying to hang in 0:19:20.400 --> 0:19:23.040 there in a tough market for foreign auto makers, so 0:19:23.400 --> 0:19:25.080 they want to keep the market share up and they 0:19:25.080 --> 0:19:28.320 want to keep the cars moving too, So very good 0:19:28.320 --> 0:19:30.399 deals if you're looking for an EV in China right now, 0:19:30.480 --> 0:19:32.320 and you're seeing some of that in the US as well. 0:19:33.320 --> 0:19:36.679 In the US, maybe some very reasonably priced zero percent 0:19:36.760 --> 0:19:38.199 loans that are going on if you want to be 0:19:38.240 --> 0:19:39.640 making purchases in evs. 0:19:40.480 --> 0:19:42.800 There are new entrants as well within China. 0:19:42.960 --> 0:19:46.320 Shoomi, for example, has made real inroads into the EV market. 0:19:46.720 --> 0:19:50.000 Tesla is dependent on China in many ways, and many 0:19:50.040 --> 0:19:52.680 wonder whether they're going to make their fourth quarter targets 0:19:52.720 --> 0:19:53.720 in terms of sales. 0:19:54.359 --> 0:19:56.680 How difficult is it to navigate China? 0:19:58.359 --> 0:20:00.840 Very tough right now, especially if you're a foreign automaker 0:20:00.960 --> 0:20:03.119 foreign to the Chinese market. The Europeans have had a 0:20:03.160 --> 0:20:06.719 tough time there, so as General Motors, Tesla is trying 0:20:06.720 --> 0:20:09.919 to really stay in the game and they're having to discount. 0:20:10.720 --> 0:20:12.879 One of the reasons you're seeing other car companies like 0:20:12.960 --> 0:20:16.080 General Motors and Volkswagen struggle is they're not as willing 0:20:16.480 --> 0:20:18.919 to discount and sell cars at a loss as the 0:20:18.960 --> 0:20:22.399 domestic producers are. And BYD is driving a lot of 0:20:22.400 --> 0:20:25.800 this because they're huge, they're profitable, they're trying to grow 0:20:25.840 --> 0:20:28.400 all over the world. They've got lower costs, so they're 0:20:28.440 --> 0:20:31.840 able to do it in a lot of ways. And 0:20:32.119 --> 0:20:34.520 you know, there's a bit of a Darwinian game playing 0:20:34.520 --> 0:20:37.239 out in China where the top domestic producers who can 0:20:37.280 --> 0:20:39.399 afford a discount are going to go for market share, 0:20:39.720 --> 0:20:42.439 go for overall size and scale and push some of 0:20:42.440 --> 0:20:45.000 the others, whether they be American and German companies or 0:20:45.000 --> 0:20:49.600 even Tesla itself or some of their own Chinese domestic competitors, 0:20:49.680 --> 0:20:52.360 push them out of business or into downsizing, so they 0:20:52.440 --> 0:20:55.960 just dominate the market. One day. They're already pretty big 0:20:56.000 --> 0:20:58.040 and they just want to be the player in the country. 0:20:58.640 --> 0:21:02.000 Evan Wilch with a pretty brutal help look on evs 0:21:02.000 --> 0:21:02.680 over in China. 0:21:02.760 --> 0:21:03.520 Thank you so much. 0:21:03.600 --> 0:21:07.399 Meanwhile, let's talk about one key carmaker. Stellantis has left 0:21:07.440 --> 0:21:10.600 without clear leadership after a surprise departure from its CEO, 0:21:10.680 --> 0:21:14.119 Carlos Tever's, which was supported earlier by BlueBag News. This 0:21:14.200 --> 0:21:16.639 comes at a time when Stalantis is under pressure to 0:21:16.840 --> 0:21:20.200 halt a sales slide in the US. It's also struggled 0:21:20.240 --> 0:21:22.879 with the European market, where demand for EBS is waning. 0:21:22.960 --> 0:21:25.359 Just as we're just talking about Chinese manufacturers to span 0:21:25.920 --> 0:21:29.080 in the region. Remember they are key when it comes 0:21:29.160 --> 0:21:39.840 to the likes of Fiat and Jeep. Welcome back to 0:21:39.880 --> 0:21:42.320 Blue Meg Technology and Caroline Hide in New York. Let's 0:21:42.359 --> 0:21:44.800 get a quick check on these markets, and let's focus 0:21:44.880 --> 0:21:46.879 in on what's happening when it comes to chips. The 0:21:47.000 --> 0:21:49.360 key story of the day a five percent rise in Intel, 0:21:49.440 --> 0:21:52.800 as the CEO, Pat Gelsinger, hired back in twenty twenty 0:21:52.800 --> 0:21:56.160 one to turn around this iconic chip maker will leave 0:21:56.200 --> 0:21:59.199 the job as that turnaround has thus far failed and 0:21:59.200 --> 0:22:02.280