Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hyde in New York
Speaker 1: and Ed lave Lowe into San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: Broadcom surges as it signs a multi year agreement with
Speaker 3: OPENINGI to design.
Speaker 2: Custom chips and networking equipment.
Speaker 3: Plus market spouts back as President Trump signaled open US
Speaker 3: to a deal with China. Amid the latest trade showdown
Speaker 3: what it means Tech.
Speaker 2: And Rare Earth and Warner Brothers.
Speaker 3: Discovery has read buffed Paramounts Guide Dancer's initial takeover approach
Speaker 3: for being too low according to sources. We'll have the latest,
Speaker 3: but first we go out to the Middle East, where
Speaker 3: President Trump is in the middle of a visit in
Speaker 3: recognition of the end of the war in Gaza, with
Speaker 3: both Hamas and Israel releasing hostages and prisoners. Today, let's
Speaker 3: go live now to Bloomberg's Oliver Crok, who's injury for
Speaker 3: the latest sun setting with you. We understand now President
Speaker 3: Trump has arrived in Egypt.
Speaker 4: Yeah, that's right.
Speaker 5: Really the sun setting here and closing what is a
Speaker 5: truly historic day for the region and certainly for the Israelis.
Speaker 5: Where we've see, as you said to Caroline, the release
Speaker 5: of the last twenty living hostages into Israeli custody there
Speaker 5: now back on Israeli soil, the release of those prisoners
Speaker 5: from the jails and being held by the Israelis, back
Speaker 5: to the West Bank, back to Gaza, back to a
Speaker 5: number of other places. A deal that was struck by
Speaker 5: President Trump through his sort of unorthodox foreign policy, and
Speaker 5: something that really was inconceivable two weeks ago. The next step, now,
Speaker 5: the next chapter is beginning in Egypt. As you can
Speaker 5: see Donald Trump sitting next to LCCI, the President of Egypt,
Speaker 5: to try to figure out the sort of very difficult
Speaker 5: phase two of this, which is what do security conditions
Speaker 5: look like going forward? In Gaza. Hamas is still armed.
Speaker 5: They have not agreed to put down their arms. That
Speaker 5: is really a precondition to make any of the sort
Speaker 5: of US plans of the Trump twenty point plan come
Speaker 5: into being. That is a requirement. And of course the
Speaker 5: question long term of governance of Goza and this so
Speaker 5: called Board of Peace that will be chaired by Donald
Speaker 5: Trump and potentially other leaders. Those are the conversations that
Speaker 5: will beginning be beginning right now in Egypt.
Speaker 3: Bloomberg's Oliver Crook A long day. Let's now listen in
Speaker 3: to President Trump as he speaks in Egypt.
Speaker 6: And it continues till today. So I want to thank
Speaker 6: you all very much. I appreciate the way you covered
Speaker 6: this really momentous. I've never seen anything like it, the
Speaker 6: level of love, the level of respect for what it is,
Speaker 6: and it's you know, it's pieces of the Middle East,
Speaker 6: and everybody said it's not impossible to do, and it's
Speaker 6: going to happen, and it is happening, is before you
Speaker 6: very eyes, and that's why it's become so fascinating.
Speaker 7: Marco, do you have anything to.
Speaker 8: Say to Egypt's been a phenomenal participant. I think Golo,
Speaker 8: Steven Jerry will tell you the critical role they played,
Speaker 8: and they can tell you themselves. They hosted the talks
Speaker 8: here and they're going to play a very important role
Speaker 8: now in the follow up implementation of this, which is
Speaker 8: really it's not simply about restoring Gaza, it's about transforming
Speaker 8: the region. So we have an incredible partner along the Alliance,
Speaker 8: very capable partner here and a tremendous collection of leaders.
Speaker 9: This is clearly in my mind.
Speaker 8: I think, in the mind of everyone in this room,
Speaker 8: probably one of the most important days for world peace
Speaker 8: in fifty years. That's not an exaggeration, only fifty, maybe one.
Speaker 9: Hundred in the World War two.
Speaker 3: Mister Wickcof and mister Kushner, I'm curious you've played such
Speaker 3: an important role in the tactical negotiations here.
Speaker 10: Or its as a lot more has to be brought
Speaker 10: to the table here.
Speaker 8: Oh, the minute, the minute we at ink the deal,
Speaker 8: Jared and I were already working on the implementation side
Speaker 8: of the deal, so we've dug in.
Speaker 9: We'll be here quite a bit. That's at the direction
Speaker 9: of the President.
Speaker 6: That's probably when it's going to be one of the
Speaker 6: most important pass here.
Speaker 9: Jared is remarkable to work with.
Speaker 6: I talk about it all the time, and of course
Speaker 6: we both love working for the president.
Speaker 7: So I would say, uh, feels like.
Speaker 9: A very honorable job.
Speaker 6: Mister President, Would you like to say something would be
Speaker 6: a bit better?
Speaker 1: I guess.
Speaker 11: So, what do you if the bead in a a
Speaker 11: hub of a coup of dice and that's hanged with putty,
Speaker 11: shot out this shotting shit, it's.
Speaker 12: It's wickyser this way this way they put in the sweet.
Speaker 4: When we can had the but wouldn't have you.
Speaker 7: Set out and look at like.
Speaker 13: The hanger type.
Speaker 4: I had to hang it as at right as a rounds. Well.
Speaker 7: First of all re elections say I welcome to you
Speaker 7: between each other. It's a great pleasure and the honor
Speaker 7: to have you with us here in the city of
Speaker 7: peast tram Shaknus would extend uh on behalf of all
Speaker 7: reluctions and the beasts lovers around your elds, so you
Speaker 7: your appreciation. I never facts as I'm president and momentus
Speaker 7: accomplished by your hands.
Speaker 4: And they're going to do the hypercundaries and they can
Speaker 4: hate the cold.
Speaker 9: Where ahead.
Speaker 7: I'm very confident that your Excellency is the only one
Speaker 7: who's killed of bringing this about and bringing them to
Speaker 7: this war, whether you're been.
Speaker 6: To start the counties, because that was the bitter counties.
Speaker 9: And then I had a conclusion. I had a pers people.
Speaker 14: Contin are you even said that very precisely during my
Speaker 14: communication with your excess, that you are the only one
Speaker 14: who is able to bring about peace and to achieve.
Speaker 4: Peace in this moment.
Speaker 3: We head back now to Juristen and Bloomberg's Oliver Crook
Speaker 3: stands by to interpret what is currently momentous occasion in Egypt,
Speaker 3: President Trump, alongside the leader of Egypt, of just interpret
Speaker 3: the next steps that everyone.
Speaker 2: Now focuses on.
Speaker 5: Yeah, I mean, what is going to be the next
Speaker 5: step is really marking the moment for which we shouldn't
Speaker 5: sort of undervalue how significant it is, and that is
Speaker 5: going to be the signing of the sort of peace document,
Speaker 5: sort of ceremonial moment by presumably Donald Trump and a
Speaker 5: number of others who have been very active in the
Speaker 5: negotiations here. I mean there have been a few nations
Speaker 5: that Trump has talked about a lot being very actively
Speaker 5: involved in the negotiations. Of course, the Egyptians having played
Speaker 5: a crucial role, the Kataris of course, as we know,
Speaker 5: but then quite unexpectedly and quite significantly, the Turks and
Speaker 5: President Erduwan who really came in and put a lot
Speaker 5: of pressure to bear on Hamas, which we understand it
Speaker 5: was really the Kataris and Turkey that put that pressure
Speaker 5: onto Hamas that got them really over the line to
Speaker 5: come to this agreement and finally release those last twenty hostages.
Speaker 5: That has been the sort of one of the main
Speaker 5: war aims of the Israelis. One was to destroy Hamas.
Speaker 5: The other was the release of the hostages. And as
Speaker 5: far as Hamas will be viewing, the situation really relinked
Speaker 5: puishing their last sort of piece of leverage that they
Speaker 5: have against the Israelis, so absolutely significant. So bringing all
Speaker 5: of these nations together to start to discuss what the
Speaker 5: sort of posts war the day after Architecture looks like
Speaker 5: is I think has gone. It was always going to
Speaker 5: be the most difficult part of this conversation, and that
Speaker 5: is a conversation that begins now with President Trump sitting
Speaker 5: alongside President Cci and Charmel Shaik and starting to begin
Speaker 5: to build those coalitions of trying to build a security
Speaker 5: apparatus within Gaza, one that is both credible to the
Speaker 5: Israelis and to the Palestinian people, in order to bring
Speaker 5: in this sort of technocratic, Palestinian led governance structure that
Speaker 5: can sit a top of Gaza in order to facilitate
Speaker 5: the rebuilding and of course getting aid and ultimately potentially
Speaker 5: and this is a provision theoretically that is possible with
Speaker 5: this twenty point plan, a Palestinian state.
Speaker 2: Oliver Krook life from Jerusalem. We thank you very much.
Speaker 3: Indeed, now let's turn out attentions to the broader markets
Speaker 3: right now. It has been a risk on mood to
Speaker 3: those that are participating one and a half percent on
Speaker 3: the Nasdaq one hundred a bounce back from Friday when
Speaker 3: the anxiety around US China relationship du back risk taking.
Speaker 3: We now see one and a half points added. It's
Speaker 3: interesting that, of course we've got to dive into the
Speaker 3: Ai side of the story.
Speaker 2: The key deal that you've got to keep.
Speaker 3: An eye on is that between Broadcom and open Ai,
Speaker 3: absolute surge in this particular chip stock. It's going to
Speaker 3: design not only chips, we're also networking equipment. We're up
Speaker 3: nine one hundred and fifty billion dollars being added to
Speaker 3: the market capitalization of Broadcom. We're going to dig into
Speaker 3: that exact story right now because Bloomberg, Seth Spiegerman joins us.
Speaker 2: And this is interesting because and.
Speaker 3: Video and AMD seemed to be able to get deals
Speaker 3: but had to sweeten them for open Ai. This time
Speaker 3: it's just plain old ten billion dollars to ten giga
Speaker 3: what's it feeans Seth.
Speaker 15: Yeah, I mean, we're still trying to figure out the
Speaker 15: exact financial contours of this deal book. It's also a
Speaker 15: bit different than some of the other deals that we've
Speaker 15: seen Opening Idea recently. I mean, they're trying not only
Speaker 15: to pave the way for more computing capacity, but also
Speaker 15: to play a more central role in sort of the
Speaker 15: stack that supports AI by working with Broadcom to begin
Speaker 15: customs designing their own chips. And I think we should
Speaker 15: expect to see more of this from open Ai in
Speaker 15: the next couple of years, as they want to be,
Speaker 15: you know, kind of simultaneously owning the AI models but
Speaker 15: also having startain to have some proprietary intelligence into how
Speaker 15: to best set up data centers and chips to facilitate
Speaker 15: those models.
Speaker 3: And it's interesting Braallcom of course doesn't supply the data centers,
Speaker 3: but it provides a lot of the equipment that's going.
Speaker 2: To be going into them.
Speaker 3: Seth, what is the argument, how much more efficient can
Speaker 3: your own design chips be? Alphabet already does it for
Speaker 3: example with will come.
Speaker 15: Yeah, I mean it remains to be seen, but I
Speaker 15: think for OpenAI, there's a couple of clear incentives here. One,
Speaker 15: it doesn't have to you know, it's at the front
Speaker 15: of the line for these chips. Two, as it is
Speaker 15: closest to its own AI models, its own needs, and
Speaker 15: the future of AI development, the company might be the
Speaker 15: best position to figure out what it most needs from
Speaker 15: the chips out there. And three, Opening has a lot
Speaker 15: of experience now and setting up these data centers. When
Speaker 15: you think about the chips, rats and servers like, it
Speaker 15: has a unique proprietary perspective on how to best design
Speaker 15: these data centers. All that combined might help Opening I
Speaker 15: cut costs and also build more efficient.
Speaker 3: System berg Seth Figerman. We so appreciate you joining. Let's
Speaker 3: get a portfolio management perspective right now. Ude Charuvu is
Speaker 3: portfolio manager Harding Lovner, and I'm really interested in the
Speaker 3: fact that you've got holdings in VideA. You're clearly a
Speaker 3: supporter of the AI theory. But are we looking at
Speaker 3: a bubble and you get these sorts.
Speaker 12: Of deals, Well, go to look at a cho race
Speaker 12: one in terms of timing of the deals. If it
Speaker 12: is a bubble, it's potentially an MPV issue. Is it
Speaker 12: Are we going to get all this revenue.
Speaker 4: In ten years time?
Speaker 12: For five years time? And that's what the market is
Speaker 12: trying to figure out right now. People try to compare
Speaker 12: this to the dot com bubble, et cetera. But there's
Speaker 12: a difference here. A lot of the companies who are
Speaker 12: buying a lot of these products are supported by strong
Speaker 12: cash flows, free cash flows, which means that there is
Speaker 12: potential for these revenues to come through, especially if AI
Speaker 12: demand take up goes along the lines of what we're
Speaker 12: seeing in the last two three years.
Speaker 2: I mean, none more so have the financial flex than
Speaker 2: in video.
Speaker 3: And it's interesting that in Vidia when signing that ten
Speaker 3: gig or what compute capacity with open Ai, did give
Speaker 3: one hundred million dollars in terms of support buying equity.
Speaker 3: Is those sort of circular financing deals something that gives
Speaker 3: you pause or do you think that that's part.
Speaker 2: Of what the deal needs to be?
Speaker 4: No, that does give us posts.
Speaker 12: You do look at that and say, hang on, this
Speaker 12: is not clear blue sky. There are some things need
Speaker 12: we need to think of. So that's why the next
Speaker 12: two three is are going to be really important because
Speaker 12: what we want to see is the return on the
Speaker 12: capis that companies like Alphabet Meta, a lot of these
Speaker 12: big companies are spending to show up. If it shows up,
Speaker 12: then what you realize is that this hundred billion dollars
Speaker 12: is not circular but just the kickstart. So that's what
Speaker 12: that's what we want to try and see.
Speaker 2: I mean, you own meta.
Speaker 3: A meta has shown up in terms of generative AI
Speaker 3: being folded into the advertising model being able to be
Speaker 3: built in and bring real revenue to bear right here
Speaker 3: right now.
Speaker 2: But how long you're.
Speaker 3: Going to have to weigh for Alphabet's bet to really
Speaker 3: pay off? For we already see a nvideo, but do
Speaker 3: you think more broadly opening eye eventually really showing that
Speaker 3: productivity is going to gain them in terms of revenue.
Speaker 12: So from an Alphabet from the software companies perpective, we
Speaker 12: do think that the next twelve months are going to
Speaker 12: be really important. What you do need to see is
Speaker 12: not just the return on capex going through, but the
Speaker 12: revenue growth coming through to support that in twenty seven
Speaker 12: twenty eight that we are going to see a continued
Speaker 12: acceleration or at least stability in revenue growth. Without that,
Speaker 12: it's very hard to see how the market gets really
Speaker 12: comfortable with the amount of capics that's being spent right now.
Speaker 3: I mean, you just said it does give you pause,
Speaker 3: and there isn't just blue sky when it comes to
Speaker 3: in video.
Speaker 2: So have you just been trimming some of the exposure.
Speaker 3: Has now been the time to just stay holding pat
Speaker 3: and not adding to some of the overall portfolio exposure.
Speaker 2: To some of these names.
Speaker 12: So we tend to think of in terms of longer terms.
Speaker 12: So what does this look like in the next five years?
Speaker 12: When we look at from that perspective, the evaluation doesn't
Speaker 12: look extreme at this.
Speaker 4: Point in time.
Speaker 12: It does look at a point give us a pause
Speaker 12: in terms of, look, what else do we need to
Speaker 12: factor in to keep buying more? But at the same time,
Speaker 12: it doesn't give us any fear that, hey, this is
Speaker 12: an imminent bubble as you want, As.
Speaker 3: You asked at the start well on Friday, there was
Speaker 3: a lot of pause between US and China and particularly
Speaker 3: access with some of these companies to rare earth that
Speaker 3: ultimately are very dependent on China. How much have you
Speaker 3: been making that into a supply chain headache for some
Speaker 3: of the companies you own.
Speaker 12: So that's again it's a timing issue.
Speaker 4: So there's two parts.
Speaker 12: The first part is is this has become a prolonged
Speaker 12: issue due a political issue. Then there's a lot of
Speaker 12: other things that you think of, not just the semiconductor companies,
Speaker 12: with all the FMCG companies, all the other companies that
Speaker 12: sell into emerging markets, and all global treats.
Speaker 4: So let's set that aside, that this is.
Speaker 12: A solvable problem that gets solved at some point in
Speaker 12: the time, then it's a timing issue already. What the
Speaker 12: companies are telling us is there's a real supply issue
Speaker 12: that they don't have enough computing power. So that means
Speaker 12: that people who make these chips benefit from any of
Speaker 12: these supply chain issues because to them they get pricing
Speaker 12: power in the short term, but in the long term
Speaker 12: this gets solved, so it's a temporary issue. So if anything,
Speaker 12: these sort of market dips is an opportunity that you
Speaker 12: look at saying, what are the good quality companies that
Speaker 12: you do know have pricing power that you want to
Speaker 12: buy into right now.
Speaker 3: And what are they If it's not the obvious AI
Speaker 3: winners and darlings who've already seen hit are trillion dollars.
Speaker 12: No, No, they still remain as I said, they still
Speaker 12: remain attractive.
Speaker 4: But there's there's a broader spectrum out there.
Speaker 12: If you look at companies like Delta Electronics, which provides
Speaker 12: electronics and cooling, coqruitment to data centers. You look at Schneider,
Speaker 12: you look at SAP, which is going to benefit from
Speaker 12: the fact that AI gets taken up by more and
Speaker 12: more enterprise. So there's a bigger ecosystem than just the
Speaker 12: semiconducted companies or just the cloud companies, and.
Speaker 3: A global ecosystem. Your name and a couple of Europeans.
Speaker 3: Then Ude Charuva is so good to have him in
Speaker 3: Harding Lovner. We have come back soon. Meanwhile, coming up
Speaker 3: rare earth stocks, they've been surging. We've just been talking
Speaker 3: about them. US trying to trade spats have reignited. We're
Speaker 3: going to dig into that next. This has been bad tech.
Speaker 2: Rare ear and.
Speaker 3: Critical minerals producers surged after President Trump and China reignited
Speaker 3: fears of a potential trade spat between the two countries.
Speaker 3: But just today JP Morgan articulating it will funnel one
Speaker 3: and a half trillion dollars into companies that will US
Speaker 3: security and resiliency, including earth minerals from all.
Speaker 2: Bloomberg Senior Tech.
Speaker 3: Editor Mike Shepper joins us on what is a geopolitical
Speaker 3: story that is really affecting some of these stocks.
Speaker 2: What's your key takeaway today, Well.
Speaker 11: The key takeaway is that the ball is still moving
Speaker 11: between the two sides.
Speaker 4: We are seeing JD.
Speaker 11: Van's playing bad cop in the discussions. Right after Donald
Speaker 11: Trump signals some openness to trying to back away from
Speaker 11: this standoff that just erupted over the past several days,
Speaker 11: Jdvan saying, look, it is up to China now to
Speaker 11: make the next move. Beijing in turn responding with the
Speaker 11: same saying, look, it is Washington that now needs to
Speaker 11: make some sort of concession for US to relax.
Speaker 4: Some of these newly imposed export controls.
Speaker 11: And what is really hitting a nerve here in Washington
Speaker 11: is that it is a reimposition of export controls on
Speaker 11: rareerads that are critical to so many industries here in
Speaker 11: the US, everything from consumer electronics to defense. It is
Speaker 11: also the imposition of controls and the technology used to
Speaker 11: extract it, and that poses a complication for US efforts
Speaker 11: potentially to try to do more of this at home.
Speaker 11: China is exerting what it sees as leverage in rare
Speaker 11: roots because it holds roughly half of the world's reserves
Speaker 11: in rare orts and It dominates production and refining of
Speaker 11: these materials which are used, as I said, across the economy,
Speaker 11: and iPhones in consumer electronics, even smart vision goggles, night
Speaker 11: vision goggles used by the military. So we are seeing
Speaker 11: something crucial for the US. But China is also trying
Speaker 11: to exert this leverage to perhaps get some concessions from
Speaker 11: the US on export controls governing things such as semiconductor
Speaker 11: manufacturing equipment and AI chips as well, and so this
Speaker 11: will be playing out rapidly. They don't have a lot
Speaker 11: of time to solve this before those tarifts that Donald
Speaker 11: Trump threatened take effect on November first.
Speaker 4: Now, the key thing Caro to watch this week.
Speaker 11: Later this week will be that there will be a
Speaker 11: Chinese delegation here in DC for the IMF World Bank
Speaker 11: Annual semi annual meetings. We'll want to see what may
Speaker 11: emerge in terms of first steps toward a rap Rochemont.
Speaker 3: Mike Shephard, we appreciate the breakdown and let's stick with
Speaker 3: China and joining us as Michelle Guide, our CEO of
Speaker 3: the CROC Institute for Tech Topomacy and Purdue. Are we
Speaker 3: expecting a dayton? Are we expecting a pullback? From the brink,
Speaker 3: because Friday it.
Speaker 2: Felt very much live and well when it comes to anxiety, well.
Speaker 10: I think what we're seeing is that this type of
Speaker 10: volatility is just the cost of doing business with a
Speaker 10: totalitarian state, and as long as it involves China, volatility
Speaker 10: and uncertainty in the market is really going to be
Speaker 10: a fat rather than a problem.
Speaker 9: And so there's two really important.
Speaker 10: Things here for business leaders to understand as we watch
Speaker 10: these negotiations continue. First is that every time that there's
Speaker 10: a ninety day extension here, it's not really a pause.
Speaker 10: We're just entering an other inning of negotiations, and so
Speaker 10: this type of posturing is going to continue to happen,
Speaker 10: and markets need to bake that in. So it's like
Speaker 10: make a note for February, because if we get to
Speaker 10: November and then we get another extension, then this is
Speaker 10: all going to happen again.
Speaker 9: So it's peace number one.
Speaker 2: Second, and even more importantly.
Speaker 10: Is even when we have an agreement, we are doing
Speaker 10: business with a totalitarian state in the Chinese Communist Party,
Speaker 10: So we still can't relax because they aren't in the
Speaker 10: business of honoring agreements until the point that it becomes
Speaker 10: inconvenient for them, and so real stability here in the
Speaker 10: long term isn't going to happen until not just when
Speaker 10: there's another agreement, but real stability is going to come
Speaker 10: from when there's total American dominance in the next generation
Speaker 10: of industry. So it China becomes a non issue.
Speaker 2: Well, let's talk about rare US. For example.
Speaker 3: We had the CTO of Palanteer Michelle on the show
Speaker 3: on Friday, and really sham Sanka was saying he thinks
Speaker 3: the leverage is being exerted by China and right here
Speaker 3: right now because of the independence starting to be shown
Speaker 3: with MP materials in the state being built there. The
Speaker 3: idea that the US has got the memo that they
Speaker 3: need to be more dependent on themselves for rare US.
Speaker 2: Is that the reality here? And how quickly can that unfold?
Speaker 4: Yeah?
Speaker 10: I think all of this is going to be a
Speaker 10: tit for tat and a grinding, incremental struggle until the
Speaker 10: United States pulls away. And you know you mentioned Palentier.
Speaker 10: I know you were also talking to Palmer Lucky at
Speaker 10: and Roll last week. When you think about total American
Speaker 10: dominance in the next generation of industries that's going to
Speaker 10: come from the private sector and so what we're watching
Speaker 10: on a day by day basis is the governments go
Speaker 10: back and forth, and our government in the United States
Speaker 10: plays a really important role when it comes to defense
Speaker 10: export controls, leveling the playing field like with tariffs. But
Speaker 10: when it comes to offense, that is going to be
Speaker 10: a private sector role. We have to build new technologies,
Speaker 10: we have to manufacture them here at home. We have
Speaker 10: to create new categories. We have to regain control over
Speaker 10: materials over all of our supply chains. We have to
Speaker 10: move really fast. And so you mentioned the investment at
Speaker 10: JP Morgan now pumping billions or trillion and a half
Speaker 10: dollars into really important national security industries you talked about
Speaker 10: palanteer anderl I was in Austin last week with the
Speaker 10: team at Saronic doing really amazing things with the next
Speaker 10: generation of autonomous vessels, building them here at home with
Speaker 10: speed and scale.
Speaker 16: That is what victory looks like, the.
Speaker 3: JP and Morgan event and well signaling it's five hundred
Speaker 3: billion dollars more than perhaps would have been down anticipated
Speaker 3: one and a half trillion. What really can they do
Speaker 3: in terms of funneling channeling money to these sorts of
Speaker 3: key industries because many would say, look, this is just
Speaker 3: the right sort of lip service you need to pay
Speaker 3: to the current administration.
Speaker 10: Well, I think when they're pumping capital into really important
Speaker 10: businesses and industries, what they're allowing them to do is
Speaker 10: go faster. And I think that's been the name of
Speaker 10: the game here. China has a competitive edge because they
Speaker 10: can move fast. Since they're a very top down totalitarian state.
Speaker 10: Here in the United States, speed has to be our
Speaker 10: next weapon, and so pumping capital into these really important
Speaker 10: industries are just going to enable us to move faster,
Speaker 10: to build, to rebuild, and to dominate these important sectors
Speaker 10: in order for us to leave the twenty first century
Speaker 10: shell geide.
Speaker 3: At Psoronic two, I've had them on the show and
Speaker 3: can't wait to talk more a little bit about autonomous
Speaker 3: vessels from the Kruck Institute.
Speaker 2: We so appreciate your time.
Speaker 3: Meanwhile, coming up, elol Musk's Dubai loop set to open
Speaker 3: in twenty twenty six, according to Amorati official.
Speaker 2: We'll talk about that plan next. This has been bed tech.
Speaker 3: Commuters in Dubai could travel along Elon Musk's underground transit
Speaker 3: system as soon as next year, as according to an
Speaker 3: Emarati official now. The project, announced back in February by
Speaker 3: Musk's boring company, would be a rare success for the
Speaker 3: tunneling startup. The first phase is set to span ten
Speaker 3: point six miles and carry twenty thousand passengers an hour,
Speaker 3: and it is part of the UAE's broader push to
Speaker 3: ease congestion from its growing population. Let's put it now
Speaker 3: and look at what's happening in the crypto markets, because Bitcoin, boy,
Speaker 3: did we have a significant sell off in the last
Speaker 3: three days. We want to push back to what happened
Speaker 3: on Friday evening. It crypto marketing experience a brief but
Speaker 3: so is the intense crash that was particularly felt in
Speaker 3: the old coins at one point, using much as forty
Speaker 3: percent within minutes as the one hundred percent tariff on
Speaker 3: Chinese imputs came from President Trump. Critics really talking about
Speaker 3: crypto market structure here, a lack of liquidity, excesses, leverage
Speaker 3: and particular some glitches that seem to occur and autoly
Speaker 3: leveraging control mechanisms over in exchanges like finance. But we
Speaker 3: keep an eye Bitcoin now up and flat over the
Speaker 3: course of three days. We're coming up plenty more on
Speaker 3: Open AIM Broadcom a multi year arrangement for custom chips
Speaker 3: and networking equipment. Then is sent broad comstock soaring from
Speaker 3: New York. That's a Bloomberg Tech. Welcome back to Blomberg Tech.
Speaker 3: We check in on these markets that are back in
Speaker 3: rally mode after Friday's anxiety China US dialing up once
Speaker 3: again the trade tensions. We bounced back as both seem
Speaker 3: to calm rhetoric on the day. We are almost two
Speaker 3: percentage points, particularly chip stocks. Let's just dive in and
Speaker 3: see what's happening in terms of the Semiconductor Index, which
Speaker 3: is basically got every single member in the green.
Speaker 2: All bar one in video up two point eight percent.
Speaker 3: As we continue to dial in on the AI opportunity,
Speaker 3: AMD is at one point six percent, but Broadcom it
Speaker 3: leads the charge more than nine percent one hundred and
Speaker 3: fifty billion dollars added in market capitalization, as we see
Speaker 3: a deal to be helping with custom chips and indie
Speaker 3: networking gear for Open AI, and they don't you even
Speaker 3: have to spend their own equity, it seems. Let's get
Speaker 3: to that key story of the day between Broadcom and
Speaker 3: Open AI. We Mandat seeing his BlueBag Intelligence, Global head
Speaker 3: of tech Research. And what's been so interesting about these
Speaker 3: golden touches from open ai for some of the big
Speaker 3: publicly traded companies is usual. Open ai has been given
Speaker 3: a sweetename buying video by IMD Broadcom.
Speaker 2: It just seems to be independence that they give to
Speaker 2: open Ai.
Speaker 17: Yeah, and I think the model here is the Google
Speaker 17: GPU model. I mean, when you think about Broadcom's almost
Speaker 17: twenty billion dollars rund rate for AI chips, more than
Speaker 17: half of that.
Speaker 4: Is from Google GPUs.
Speaker 17: So what open ai is saying is you help us
Speaker 17: get there in terms of the ramp up like Google TPUs,
Speaker 17: which is in their seventh version of chips.
Speaker 4: I mean, and they've done it at a very quick pace.
Speaker 17: So from that perspective, it will help open ai produce
Speaker 17: costs of up to thirty to forty percent per gigawat.
Speaker 17: If you think about, you know, one gigawatt takes forty
Speaker 17: to fifty billion. One gigawat with Broadcom chips would be
Speaker 17: at least thirty to forty percent cheaper because the cost
Speaker 17: of those chips is the highest component in that gigawat buildout.
Speaker 17: So Broadcom helps you lower that cost of chips, and
Speaker 17: I think that's some here that yes, we want merchant silicon,
Speaker 17: but we also want custom silicon with Broadcom because that's
Speaker 17: the kind of diversification Google has and that's why their
Speaker 17: cost of infrastructure is the lowest among all the hyperscalites.
Speaker 3: Well, do the read a cross for the TPUs from
Speaker 3: and from Google? Who else is in the mix there?
Speaker 3: Because hair Broadcom says I'll help you custom designer chip,
Speaker 3: I'll help you with networking gear. But there's a lot
Speaker 3: more to an AI data center than all of that.
Speaker 17: Absolutely, and you need to source the power you need.
Speaker 17: All the other deals fit in the end when you
Speaker 17: look at you know what Amazon is trying to do
Speaker 17: with Tranium, they're doing that with Marvel. Microsoft is doing
Speaker 17: that with Marvel as well, and they haven't had the
Speaker 17: same kind of success that Google has had with TPUs
Speaker 17: with Broadcom. So to my mind, you know, it was
Speaker 17: natural for open AI to try with Broadcom given the
Speaker 17: success that again Google has had compared to everyone else
Speaker 17: who is trying to do custom silicon.
Speaker 4: And yeah, they will do deals for power.
Speaker 17: That's what open EI is good at in terms of
Speaker 17: sourcing different providers. That's what Sam Altman has shown. But
Speaker 17: clearly chips is the component that costs sixty to seventy
Speaker 17: percent of the data center, so you want to make
Speaker 17: sure you get that at the lowest cost.
Speaker 4: You won't be able to do that with Nvidia.
Speaker 17: Vidia will still be the highest cost chip provider, even
Speaker 17: though they are making an investment. AMD has will likely
Speaker 17: cut its cost, but it won't be the same performance
Speaker 17: per What Broadcom will do it custom specs for you,
Speaker 17: and then they can do it at scale that Google
Speaker 17: is doing.
Speaker 2: And it's for inference.
Speaker 3: And I'm interested if you can interpret when open Ai,
Speaker 3: Sam and hop Tan get together on a podcast and
Speaker 3: announce this sort of a deal. What is it by
Speaker 3: understanding your own large language model and the needs of
Speaker 3: it that can really be built into the custom silicon.
Speaker 17: I mean, just this past weekend I read about tiny
Speaker 17: recursive models. So everyone is looking at how these large
Speaker 17: models can be run more efficiently in terms of inferencing costs.
Speaker 17: And you know, whether it's tiny recursive models or some
Speaker 17: other farm, you want minimum latency as well as you
Speaker 17: know power is your real constraints, so you want maximum
Speaker 17: performance per Why so if you're optimizing for those two,
Speaker 17: you are going to go with custom silicon because that's
Speaker 17: what Google has shown us. They can run YouTube videos
Speaker 17: best because it's their custom silicon. No other merchant silicon
Speaker 17: can give you that kind of performance, and I think
Speaker 17: that's what Open Eye is.
Speaker 2: Going after multi year deal.
Speaker 3: Ten million dollars is what they signal back on their
Speaker 3: earnings of the villion. In September, mandep seeing BlueBag Intelligence
Speaker 3: really breaking down the why. Now let's go to Bluemoe's
Speaker 3: tech equity reporter round Blastelica. Now, who can help talk
Speaker 3: through the US tech stocks, the rebound that we're seeing
Speaker 3: at the moment, and indeed what Oracle is up to
Speaker 3: on the day. But first Rhyn, we talk about the
Speaker 3: rally we're seeing in tech stoks. How much is that
Speaker 3: a relief from some of the talk between US and
Speaker 3: China of the weekend or indeed this latest bro Con deal.
Speaker 4: Hey, good morning.
Speaker 16: So when I came in this morning, everything was pretty
Speaker 16: broadly higher, which did seem to be some relief over
Speaker 16: the latest developments with respected China. But certainly when we
Speaker 16: got the news about Broadcom and open Ai, that' stock
Speaker 16: absolutely skyrocket. I think you mentioned before one hundred and
Speaker 16: forty or so billion dollars in added market cap really
Speaker 16: helped augment the moves that we are seeing in the
Speaker 16: chip space today. And obviously this comes in the week
Speaker 16: of several other deals involving open Ai, AMD, Oracle and Video,
Speaker 16: so on and so forth. Obviously this has become an
Speaker 16: incredibly influential company that is really destriving massive gains across
Speaker 16: the space.
Speaker 3: I'm talking of massive gains throughout the year, but now
Speaker 3: perhaps also rallying on the day is Oracle. We've had
Speaker 3: an interesting narrative come back to a really realization last
Speaker 3: week that maybe Oracle doesn't make that much margin every
Speaker 3: time that it's selling compute to open Ai. What has
Speaker 3: Oracle got on the agenda this week and the time
Speaker 3: that they need.
Speaker 4: To prove it well.
Speaker 16: They have their Ai World conference this week. I believe
Speaker 16: it starts today and goes all the way to a Thursday.
Speaker 16: A lot of highlights. There's going to be a couple
Speaker 16: of keynotes tomorrow, including from Larry Elson and the new
Speaker 16: co CEO. There's going to be an analyst day on
Speaker 16: Thursday where they people are expecting some updated financial targets.
Speaker 16: So there is a lot that's going on this week
Speaker 16: and there's going to be a lot that people are
Speaker 16: going to be paying attention to. One person I spoke
Speaker 16: to said he's actually hoping Oracle increases its CAPEX guidance
Speaker 16: here at the conference, because that would be an indication
Speaker 16: that people are feeling pretty confident that the recent deal
Speaker 16: they announced with open Ai, which was I think for
Speaker 16: three hundred billion over five years, that that money is
Speaker 16: going to be a pretty reliable driver for them. There
Speaker 16: is some concern right now about, you know, where's all
Speaker 16: this money coming from. How is open ai going to
Speaker 16: finance all these massive deals it's doing right now? So
Speaker 16: maybe getting some more CAPEX erg is there. That's something
Speaker 16: people are watching out for to maybe justify some of
Speaker 16: the moves that we've been seeing.
Speaker 3: I mean, and thirty five billion was where capex was
Speaker 3: meant to be hitting in fiscal twenty twenty six.
Speaker 2: They see that that was at more than.
Speaker 3: Sixty percent year on years, So Ryan talk to some
Speaker 3: of that anxiety about where money is ultimately coming from.
Speaker 3: Do you think this week we will still see the
Speaker 3: concerns around an AI bubble.
Speaker 16: I think it's going to be hard to ease those
Speaker 16: concerns completely unless we get some real sort of updated
Speaker 16: numbers out of some of these companies. I know a
Speaker 16: lot of people are really looking ahead to the upcoming
Speaker 16: Earth Earning season and see what we get out of
Speaker 16: Microsoft and Amazon and Alphabet and Meta, you know, all
Speaker 16: the major cloud companies, all the major customers to Nvidia
Speaker 16: and the other AI infrastructure stocks. That's going to be
Speaker 16: really key for people to feel like that the spending
Speaker 16: train continues to move on. And of course anything we
Speaker 16: get that sort of speaks to the ROI that these
Speaker 16: companies are seen from AI, that's going to help ease
Speaker 16: concerns as well.
Speaker 2: Make Sure and Vasilica thank you very much indeed for joining.
Speaker 3: While coming up Warner Brothers Robusts to takeover approach from
Speaker 3: Paramount Skydunce. While on that next in the future of
Speaker 3: the companies, this will be back tech.
Speaker 13: You actually need more content to yield more engagement, and
Speaker 13: so we would actually want to be in the business
Speaker 13: throughout whatever lens we're looking at of actually producing more
Speaker 13: you know, more movies, more television series, more at the
Speaker 13: scale because you need that content, you need that great
Speaker 13: storytelling to yield engagement. And from that standpoint, we're also
Speaker 13: in the business first and foremost of creating long term
Speaker 13: value creation.
Speaker 3: David Ellison, their CEO of Paramount Skuidance of course our
Speaker 3: screen Time summit last week for a moment, his company
Speaker 3: seems won't be getting more content from a takeover of
Speaker 3: Warner brother Discovery. According to sources, Warner Brothers rejected Paramount's
Speaker 3: offer for being too low.
Speaker 2: Let's get more on this from LEITHA.
Speaker 3: Wraganath, and she's a US media analyst from Bloomberg Intelligence.
Speaker 3: And it seemed from your analysis that really Paramount needs
Speaker 3: the content, perhaps more than Warner Brothers needs the price point.
Speaker 18: Absolutely, Paramount really needs a strategy, Caroline.
Speaker 4: So yes, they have skydanced that deal.
Speaker 18: It took, as you well not, it took months, played
Speaker 18: out for months, but finally everything was done and dusted
Speaker 18: in early August. But really, I mean, as you kind
Speaker 18: of look at Paramount, you kind of look at the assets,
Speaker 18: you look at the business, there's really not a whole
Speaker 18: lot get excited about. You know, you have the linear
Speaker 18: TV networks they bring in majority of the profits, but
Speaker 18: remember that's a declining business. We've seen profits almost being
Speaker 18: halved over the past you know four to five years.
Speaker 18: You have streaming, which is the way of the future.
Speaker 18: But it's really not generating profits yet, and it's a
Speaker 18: subscale business when you compare it to the likes of
Speaker 18: Netflix or Amazon or even Disney. Plus they have only
Speaker 18: about seventy million subscribers, so they absolutely need content. There's
Speaker 18: no doubt about it. Warner Brothers arguably one of the
Speaker 18: best businesses out there in the media ecosystem. You just
Speaker 18: look at some of the you know the IP. It's
Speaker 18: top tier IP. I mean, whether you're thinking of Game
Speaker 18: of Thrones or you know, Harry Potter or DC Comics,
Speaker 18: they have it all. So I think definitely that you know,
Speaker 18: Paramount needs them pretty badly.
Speaker 3: Let's talk about what Warner Brothers Discovery is currently up to.
Speaker 3: Though they're splitting in two feeling that more or certain
Speaker 3: more value can be accreted to the streaming and the
Speaker 3: movie side, what then happens to your average cable that
Speaker 3: they continue to have as a separate part of the company.
Speaker 18: Yeah, So that really, I think is the major dilemma
Speaker 18: right now for david'sazz Loave and his team at Warner
Speaker 18: Brothers Discovery, because they know very well that once they
Speaker 18: split the company, I mean streaming and studios will be
Speaker 18: off to a fabulous start. There's going to be a
Speaker 18: lot of demand of you know, in terms of content.
Speaker 18: The profitability looks good. The real problem is with what
Speaker 18: is called the global networks business in which is being
Speaker 18: called Discovery Global just to kind of reflect all of
Speaker 18: the cable networks. So the problem here again is right now,
Speaker 18: actually it brings in majority of the company's profits, so
Speaker 18: it's about seventy five to eighty percent of the company's profit.
Speaker 18: But again here it's the same old story, which is,
Speaker 18: you know, advertising revenue, affiliate revenue in decline, so we're
Speaker 18: going to see you know, EBITDA fall and so that's
Speaker 18: kind of where really the big head scratcher is for
Speaker 18: David's as love because the offer that Paramount is giving
Speaker 18: now is for the entire company, so he's also kind
Speaker 18: of he can get to offload the TV networks basically
Speaker 18: kind of say bye bye and not have to worry
Speaker 18: about it if you go through with the split. The
Speaker 18: problem is what happens to the TV networks. There's not
Speaker 18: a whole lot of bright prospects in terms of growth,
Speaker 18: and the bigger problem is that it will also have.
Speaker 2: A lot of the debt.
Speaker 18: Remember Warner Brothers right now has about thirty to thirty
Speaker 18: five billion dollars in debt, majority of which will travel
Speaker 18: with that Global Networks segment.
Speaker 2: The story will keep on folding.
Speaker 3: We thank you Ethan Ranganath and US Media and analyst
Speaker 3: for Bloomberg Intelligence. Sticking on entertainment, jares A Disney. They
Speaker 3: spiked earlier this morning after Taylor Swift announced new content,
Speaker 3: including a docu series that were premiere on Disney Plus
Speaker 3: in December. Company, as you see, shares at one and
Speaker 3: a half percent at one point up three and a
Speaker 3: half percent in pre market training. Really another sign of
Speaker 3: the economic power of Taylor Swift. Meanwhile, President Trump's proposed
Speaker 3: TikTok transfer plan will give Washington greater oversight over the
Speaker 3: apps safety and data security, and could allow US authorities
Speaker 3: access to use a data For more on the future
Speaker 3: of TikTok, Bloomberg's Alex Ravine, who covers the platform, joins
Speaker 3: US now and we we've got to put us in
Speaker 3: the context of US China diplomacy or lack there of
Speaker 3: at the moment, and the worries about dining up of
Speaker 3: trade tensions.
Speaker 2: And what that means. A TikTok But Alex, what's really.
Speaker 3: Important about your BusinessWeek's story is it shows how much
Speaker 3: control the.
Speaker 2: US government can have over data, not just the Chinese government.
Speaker 19: Now, absolutely, you know, there's still lots of details around
Speaker 19: the steal that are being worked out, and as you've said,
Speaker 19: there's questions about US China relations and how things could
Speaker 19: really change as they have over the last couple of
Speaker 19: days that could affect how this steal plays out. But
Speaker 19: one thing we've been very interested in focusing on is
Speaker 19: the role that the US government could play, really raising
Speaker 19: the question that the US government may be able to
Speaker 19: do some things on TikTok here that Americans have for
Speaker 19: many years been concerned China is doing on its own
Speaker 19: version of TikTok there in potentially determining, you know, inspecting
Speaker 19: code on the app, and in potentially determining how the
Speaker 19: algorithm is retrained. There's some sort of reading between the
Speaker 19: lines in the executive order that President Trump signed on
Speaker 19: TikTok and some briefing that the White House put out
Speaker 19: with reporters that can suggest that the White House may
Speaker 19: actually have more sway over a future TikTok than people
Speaker 19: may be aware of.
Speaker 3: Yet there's a line in your story when President Trump
Speaker 3: was quoted as saying, if I can make it one percent, Magga,
Speaker 3: I would, he said from the Oval Office, set Tom
Speaker 3: and the twenty fifth.
Speaker 2: But I'm not going it's not going to work out
Speaker 2: that way.
Speaker 3: Just Alex, we have so many questions around ensuring that
Speaker 3: these social media companies aren't biased in any way. So
Speaker 3: what do you think ultimately will become of trying to
Speaker 3: signal that lack of bias or not in the future
Speaker 3: for TikTok.
Speaker 19: Well, I think what Trump's you know, the rest of
Speaker 19: that quote is that Trump really wants to ensure that
Speaker 19: there is no bias on the platform. But I think
Speaker 19: that based on what we have seen with other social
Speaker 19: media platforms and the way that they have gone, especially
Speaker 19: since since President Trump has taken office again, we know
Speaker 19: that there are really.
Speaker 9: No guarantees and also that ownership of these platforms really matters.
Speaker 19: When Elon Musk took over took over Twitter, which he
Speaker 19: now renamed to X, it became a very political platform.
Speaker 9: Even though he allowed a lot more.
Speaker 19: Speech to flourish on the platform than previously, it really
Speaker 19: became a bullhorn for his own politics. Similarly, since Trump
Speaker 19: took office. We saw that Mark Zuckerberg has made meta
Speaker 19: platforms more in line with the Trump administration's policies and
Speaker 19: allowing more speech. So I think even though Trump, you know,
Speaker 19: reassured everybody in the Oval office and that statement that
Speaker 19: you that you just pointed to, that he does want
Speaker 19: this to be a platform that's not just one hundred
Speaker 19: percent MAGA, but that does include, you know, perspectives and
Speaker 19: philosophies and ideologies from across the spectrum. There is always
Speaker 19: the chance that the ownership could have some sort of
Speaker 19: a role in what people ultimately see on the platform.
Speaker 3: And talking of that platform, TikTok has not been pulled
Speaker 3: off the table at this point, according to James Singwere,
Speaker 3: he's negotiating with China Lumbags.
Speaker 2: Alex Slovene, thanks for the update.
Speaker 3: Coming up, we'll discuss the business of space and growing
Speaker 3: space tourism industry ESNE. It was Okoro from that Harvard
Speaker 3: Belfa Center as a brute meg Tech SpaceX plans to
Speaker 3: launch flight eleven of its Starship Mega Rocket tonight, the
Speaker 3: last one using Starship version two. This is the company
Speaker 3: prepares to transition to Starship Version three, which is expected
Speaker 3: to perform orbital launches and recoveries. Joining us now is
Speaker 3: Sna Zookoro, senior fellow at the Harvard Belfer Center. You
Speaker 3: used to be serving as a NASA executive and a
Speaker 3: former assistant director of Space Policy at the White House,
Speaker 3: so you are in the know. Just how crucial is
Speaker 3: this test later this evening.
Speaker 9: Oh, it's critically important because what we're going to see.
Speaker 20: Are thermal tests, some stress tests, some flight maneuvers as
Speaker 20: they prepare for the next version, as you indicated, and
Speaker 20: it's going to take them several months because they are
Speaker 20: going to ensure that Starship version three will go into orbit,
Speaker 20: conduct some recoveries, and it will be very exciting to
Speaker 20: see what's coming down from SpaceX After that. I think
Speaker 20: that the market will be very interested in where this
Speaker 20: unstoppable company is headed.
Speaker 3: And put into the context of how unstoppable it is.
Speaker 3: Because we've had a slight delay on delivering Amazon's Kaiper
Speaker 3: satellites into low mid Earth orbit, but that's still on track.
Speaker 2: And the fact that.
Speaker 3: Basically SpaceX is helping other competitors enter and get into space,
Speaker 3: what does that signal about its dominance?
Speaker 2: Still any lamsques, I think that it's.
Speaker 20: Just clear how important this company is as a whole,
Speaker 20: not just as a competitor, but as a leader in
Speaker 20: the sector.
Speaker 9: So as a leader in.
Speaker 20: Space at launch, they are able to help competitors get
Speaker 20: up to space, and as a leader in broadband communications
Speaker 20: and in the space sector writ large, they are able
Speaker 20: to continue to accelerate their progress. So this is very
Speaker 20: big and with Kuper, we also have to acknowledge that
Speaker 20: what this does is it's great news for the US
Speaker 20: to use strategically, since that we will now have two
Speaker 20: major at least two major players in the broadband from
Speaker 20: space ecosystem, as other countries you know, continue to build
Speaker 20: their satellite constellations to provide the same service.
Speaker 3: When we think about dominance not only in the provision
Speaker 3: of satellite communication but just in rockets full blown, how
Speaker 3: are we seeing other companies perform? I mean, Blue Origin
Speaker 3: has been active in the last month.
Speaker 9: They have been and they have been doing quite well.
Speaker 20: So you see New Shepherd, which was designed for commercial purposes,
Speaker 20: has taken six additional people up to space and their numbers.
Speaker 9: Are totally at about eighty six, which is exciting for
Speaker 9: space tourism. You know, you and I should be able to.
Speaker 11: Get on.
Speaker 20: Their backlog of space, the tourist tickets, you know, perhaps
Speaker 20: soon as they continue to complete these these launches. So
Speaker 20: it's really important to see the companies continue to show consistency.
Speaker 9: You know, when you particularly in a business, it's so complex.
Speaker 20: And that consistency really helps to ensure that, you know,
Speaker 20: the market keeps moving, the space economy keeps growing bigger
Speaker 20: and bigger.
Speaker 3: Are they getting consistency from NASA at the moment? I
Speaker 3: put a pointed question to you, because our own ed
Speaker 3: Ludlow has been breaking extraordinary stories here at Bloomberg, and
Speaker 3: really one of them being that Jared Isaacman is perhaps
Speaker 3: back back in the mixed discussions with President Trump to
Speaker 3: potentially lead NASA him of course of shift for payments
Speaker 3: and close relationship with himself being an astronaut and having
Speaker 3: relationship with with of course Elon Musk. Is there need
Speaker 3: to avoid felt in NASA right now without someone at
Speaker 3: the helm.
Speaker 20: The agencies closed at the moment given the government shutdowns?
Speaker 2: So true is that political.
Speaker 9: Political pause? And secondly, you have to think of this
Speaker 9: technically as well as economically.
Speaker 20: So technically, while NASA's needed, these companies are mature enough
Speaker 20: that they can continue to show consistency and their products
Speaker 20: without NASA conducting reviews, which is fantastic news. And then economically,
Speaker 20: quite like with space tourism and with SpaceX's starship tests,
Speaker 20: you don't really need the agency around as these companies
Speaker 20: continue to show the commercial space sector continues to grow,
Speaker 20: so we do need them politically and strategically for the future.
Speaker 9: But the companies are showing that they are part of
Speaker 9: a growing.
Speaker 20: Asset class, and they're part of a mature sector, and
Speaker 20: they are not completely reliant on an agency that is
Speaker 20: currently closed.
Speaker 3: What it seems though, is that perhaps miss operations over
Speaker 3: NASA have been saying perhaps look, then will still be
Speaker 3: stop start when it comes to getting to the Moon
Speaker 3: or getting to Mars. Just update us on what the
Speaker 3: longer term goals are for NASA and for US space
Speaker 3: more poorly briefly.
Speaker 9: So, currently the Trump administration is supportive of US.
Speaker 20: Returning to the Moon and then moving on to Mars.
Speaker 20: They are interested in moving that timeline closer so that
Speaker 20: we get there.
Speaker 9: Sooner than probably twenty twenty eight.
Speaker 20: And at the intersection of all those timelines is SpaceX,
Speaker 20: and not a surprise, they are going to supply some
Speaker 20: of the critical transportation, and there are some NASA vehicles
Speaker 20: that are going to also conduct these transportation to the
Speaker 20: Moon and elsewhere. But we do stand a good chance
Speaker 20: to meet both the administration's goals and NASA's goals of exploration,
Speaker 20: given how mature.
Speaker 9: As the technical team are.
Speaker 3: As the name of OCORRA, we appreciate your time at
Speaker 3: the Harvard Belfare Center.
Speaker 2: Thank you.
Speaker 3: That does it for this edition of Bloomberg Tech Markets
Speaker 3: Rally Today.
Speaker 2: Don't forget our podcast. This is Bloomberg