WEBVTT - Nvidia Hits $4T Market Cap, SpaceX's Path to a $400B Valuation 0:00:00.080 --> 0:00:12.880 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.960 --> 0:00:16.759 from coast to coast with Caroline Hide in New York 0:00:17.040 --> 0:00:20.160 and ever though in San Francisco. 0:00:21.560 --> 0:00:23.880 This is Bloomberg Tech coming up in video. 0:00:23.920 --> 0:00:27.080 Becomes the first company in history to have reached a 0:00:27.200 --> 0:00:30.639 four trillion dollar market cap, plus a new record for 0:00:30.680 --> 0:00:33.400 a private giant two SpaceX is, and discussions to sell 0:00:33.479 --> 0:00:36.800 shares that would value the company at four hundred billion dollars. 0:00:37.360 --> 0:00:40.800 And Apple thinks it's too big to tariff now. That's 0:00:40.840 --> 0:00:44.000 according to White House Trade counselor Petere Navarro. This is 0:00:44.040 --> 0:00:47.720 wider trade questions remain, But first we check in on 0:00:47.840 --> 0:00:50.920 these markets, which, as she managed to shrug off a 0:00:50.960 --> 0:00:52.760 lot of that trade anxiety. On the day in the 0:00:52.840 --> 0:00:56.040 NASTAC up to ten percent. We were trading in excess 0:00:56.040 --> 0:00:59.800 of five ten percent higher, led by key names such 0:00:59.800 --> 0:01:02.560 as in video. Let's just dig into what's happenings. We 0:01:02.600 --> 0:01:05.319 await big bond auctions in the United States. We try 0:01:05.319 --> 0:01:07.840 to digest what's happening in terms of trade. I am 0:01:07.920 --> 0:01:11.800 seeing a four trillion dollar market capitalization for the first 0:01:11.800 --> 0:01:14.000 time in history. We touch it, we pull back down 0:01:14.040 --> 0:01:15.959 a little bit, but in video is very close to 0:01:16.000 --> 0:01:19.080 it as we stand out. And this despite the world's 0:01:19.080 --> 0:01:22.559 biggest market cap erosion back in February after the deep 0:01:22.640 --> 0:01:25.640 Seak anxiety, they pull back and they're up twenty percent 0:01:26.200 --> 0:01:27.720 so far in twenty twenty five. 0:01:28.000 --> 0:01:28.800 Move on, though, and have. 0:01:28.760 --> 0:01:31.560 A look what's happening with Apple, because from a points perspective, 0:01:31.600 --> 0:01:34.759 it is the big drag lower on the major benchmarks 0:01:34.760 --> 0:01:38.000 today Apple Office, you'll see by more than a percentage point. 0:01:38.080 --> 0:01:40.400 This is we hear from Peter Navarro, of course, who 0:01:40.400 --> 0:01:43.800 whispers closely in trumps hera around trade that he thinks 0:01:43.840 --> 0:01:46.679 that Apple sees itself as too big to tariff, but 0:01:46.760 --> 0:01:47.840 they are moving. 0:01:47.600 --> 0:01:48.720 Fast to change this. 0:01:49.400 --> 0:01:52.600 Nevertheless, the anxiety remains around Apple and the exposure to 0:01:52.640 --> 0:01:55.960 certain trade tariffs still to be decided and announce Bloomberg's 0:01:55.960 --> 0:01:58.800 balance of power. Host Kayleie Lyons has more. We heard 0:01:58.800 --> 0:02:01.840 from Peter Navarro, who is on another network earlier today. 0:02:01.960 --> 0:02:03.560 But bring us up to speed, which is where we 0:02:03.640 --> 0:02:06.560 stand in terms of the new deadline of August first. 0:02:08.120 --> 0:02:11.359 Well, President Trump suggests that deadline actually isn't new, Caroline. 0:02:11.360 --> 0:02:13.880 He said yesterday that it's always been August first, though 0:02:13.919 --> 0:02:16.600 we thought today July ninth initially was the trade deadline 0:02:16.600 --> 0:02:19.120 that at least countries were facing in order to make 0:02:19.160 --> 0:02:21.440 trade deals with the United States. Obviously that has been 0:02:21.480 --> 0:02:24.160 punted back a few weeks. The President, in addition to 0:02:24.200 --> 0:02:27.160 tariffs on countries, is still teasing further sectoral tariffs that 0:02:27.200 --> 0:02:29.679 could affect companies like Apple when it comes to things 0:02:29.720 --> 0:02:32.799 like semiconductors, for example. And then there's copper, which he 0:02:33.040 --> 0:02:37.079 surprisingly announced yesterday. Not necessarily, the tariffs itself were surprising 0:02:37.120 --> 0:02:39.880 because a Section two thirty two investigation had been opened 0:02:39.880 --> 0:02:42.240 into copper, but the timing and the scale of the 0:02:42.280 --> 0:02:45.280 tariff were what caught us a bit aback. Fifty percent 0:02:45.320 --> 0:02:47.440 in the Commerce Secretary Howard Lutnix says, that could be 0:02:47.480 --> 0:02:50.520 effective at the end of July or also on August first, 0:02:50.520 --> 0:02:52.680 and you think about a commodity like copper, what that 0:02:52.680 --> 0:02:55.040 could do to supply and demand dynamics, Knowing right now 0:02:55.080 --> 0:02:57.680 the US doesn't have adequate supply to meet the growing 0:02:57.720 --> 0:02:59.960 demand for copper because of the role it plays in 0:03:00.080 --> 0:03:03.079 things like, for example, powering artificial intelligence, or rather the 0:03:03.160 --> 0:03:05.920 data centers that do that work in the facilities that 0:03:06.000 --> 0:03:09.440 generate the power for those data centers, the actual infrastructure 0:03:09.480 --> 0:03:12.440 to get that power to data centers, the construction of 0:03:12.520 --> 0:03:15.520 data centers that require it for things like cooling systems 0:03:15.639 --> 0:03:18.160 or their circuit boards. All of that requires copper, and 0:03:18.200 --> 0:03:20.240 copper could either be harder to come by or potentially 0:03:20.240 --> 0:03:22.920 more expensive when these tariffs go into effect. 0:03:22.919 --> 0:03:23.880 So that obviously is. 0:03:23.840 --> 0:03:25.880 One area of the market that has been roiled by 0:03:25.880 --> 0:03:28.760 tariff news in recent days, and we're waiting potentially for 0:03:28.960 --> 0:03:32.160 more tariff news. Caroline. The President posted on true Social 0:03:32.200 --> 0:03:36.440 overnight that this morning he would be announcing seven countries 0:03:36.720 --> 0:03:38.080 in regard to trade. 0:03:38.200 --> 0:03:40.760 Assumably we assume what would. 0:03:40.600 --> 0:03:43.360 Be letters like we saw earlier this week when fourteen 0:03:43.400 --> 0:03:46.200 countries had tariff rates essentially set for them that will 0:03:46.200 --> 0:03:48.720 take effect on August first. No news yet on this front, 0:03:48.760 --> 0:03:50.560 but he did say seven will come this morning, with 0:03:50.600 --> 0:03:53.600 additional letters to come later this afternoon, so we'll be 0:03:53.880 --> 0:03:56.560 on watch for those essentially all day here in Washington. 0:03:57.000 --> 0:04:01.200 The weaving of politics and technology expertly done, Thank you, 0:04:01.480 --> 0:04:05.560 Kayley Lines. Now, let's just admit that talk of tariffs 0:04:05.600 --> 0:04:07.160 are probably going to be consuming much of. 0:04:07.080 --> 0:04:09.680 The conversation over the annual Allen and co retreat in 0:04:09.720 --> 0:04:10.280 Sun Valley. 0:04:10.480 --> 0:04:13.680 But so two, there's a competition in AI when companies 0:04:13.760 --> 0:04:17.160 like Meta actively recruiting top talent from across the industry, 0:04:17.200 --> 0:04:18.920 including from Open Ai. 0:04:19.240 --> 0:04:19.360 Now. 0:04:19.400 --> 0:04:22.200 Despite that, talent war CEO Sam Altman says he remains 0:04:22.200 --> 0:04:23.560 confident in this team. 0:04:24.200 --> 0:04:26.279 I think we have an incredible I mean, obviously an 0:04:26.320 --> 0:04:28.280 incredibly talented team, and I think they really love what 0:04:28.360 --> 0:04:28.760 they're doing. 0:04:28.800 --> 0:04:30.520 Obviously some people have got a different places. 0:04:30.520 --> 0:04:34.440 There's a lot of excitement I guess we could say 0:04:34.440 --> 0:04:35.240 in the industry, but. 0:04:35.720 --> 0:04:38.839 No, I think we still find joining us now is 0:04:38.839 --> 0:04:41.839 our very own ed Ludlow in Sunny Sun Valley, Idaho. 0:04:42.279 --> 0:04:45.600 So thus far, no awkward meeting between Altman and zuck 0:04:45.720 --> 0:04:46.880 has been witnessed, right. 0:04:49.600 --> 0:04:52.080 No, people I've spoken to haven't witnessed one, and we 0:04:52.160 --> 0:04:54.760 haven't actually seen Zuckerberg arrive yet. But that was what 0:04:54.800 --> 0:04:57.560 Sam Altman said because he was asked. You know, his 0:04:57.640 --> 0:05:00.640 expectation is that he will see Mark's Uckerberg and that 0:05:00.640 --> 0:05:01.880 he's looking forward to it. 0:05:02.680 --> 0:05:02.839 You know. 0:05:02.920 --> 0:05:05.120 He kind of elaborated on what he discussed on the 0:05:05.160 --> 0:05:07.240 podcast with his brother a few weeks back, which is 0:05:07.760 --> 0:05:11.480 he feels the strategy on talent is to be mission oriented, 0:05:11.839 --> 0:05:14.240 to have the great research lab and a great company. 0:05:14.240 --> 0:05:16.640 It was kind of a reference to that quote that 0:05:16.680 --> 0:05:21.160 he had about being mission driven missionaries not mercenaries. But 0:05:21.240 --> 0:05:22.839 again we're waiting for it to happen. I do know 0:05:22.880 --> 0:05:24.520 that it's a big point of focus this year here 0:05:24.560 --> 0:05:25.160 at Anal. 0:05:24.960 --> 0:05:25.880 And coch Well. 0:05:25.960 --> 0:05:28.839 A big talent question has just arisen as well, a 0:05:28.880 --> 0:05:32.120 movement of Linday Acarino out of x she's posting on 0:05:32.200 --> 0:05:35.400 the social media platform saying she's stepping down as the CEO. 0:05:35.560 --> 0:05:36.400 ED what do you make of it? 0:05:39.200 --> 0:05:41.080 Yeah, I mean in the post she's talking about the 0:05:41.080 --> 0:05:43.520 turnaround job that she's done without sort of giving any 0:05:43.520 --> 0:05:49.000 specific metrics that lowered down. There's a reference to Xai, right, 0:05:49.040 --> 0:05:51.360 and it's really important to remember that post March, when 0:05:51.600 --> 0:05:55.920 x and Xai essentially merged under Xai Holdings, that the 0:05:55.960 --> 0:05:58.200 structure of that company changed. 0:05:58.520 --> 0:05:59.160 There's a lot of. 0:05:59.120 --> 0:06:02.800 Emphasis on how how x the social platform provides a 0:06:02.920 --> 0:06:06.240 mote for Xai, the developer of large language models and 0:06:06.279 --> 0:06:10.200 generative AI tools. But Elon Musk, this is the latest 0:06:10.200 --> 0:06:12.880 person in his orbit to step down or leave. You'll 0:06:12.920 --> 0:06:17.840 remember reporting about Omi Dafshar leaving Tesla, other senior executives 0:06:17.839 --> 0:06:20.600 in other places. So very interesting to see what happens 0:06:20.640 --> 0:06:23.400 big picture with x and where it fits in alongside 0:06:23.520 --> 0:06:26.400 XAI rather than just being an ad base social platform. 0:06:26.440 --> 0:06:28.800 And let's talk about orbits and Elon Musk a bit more, 0:06:28.839 --> 0:06:31.839 because you have a great scoop out on SpaceX working 0:06:31.880 --> 0:06:34.040 with colleagues talking about how it's going to be perhaps 0:06:34.080 --> 0:06:36.560 a record setting valuation of a private company. 0:06:39.320 --> 0:06:42.039 So SpaceX does tend to do a secondary or tender 0:06:42.120 --> 0:06:44.440 every six months, and they use this mechanism where it's 0:06:44.480 --> 0:06:47.240 concurrent with a very small primary in other words, they 0:06:47.640 --> 0:06:50.400 sell very small number of new shares to set the 0:06:50.400 --> 0:06:53.160 price and the valuation. And what we're hearing from sources 0:06:53.240 --> 0:06:56.239 is that that valuation is now above four hundred billion 0:06:56.320 --> 0:06:59.920 dollars and it's astonishing, right, like it's a milestone, most 0:07:00.360 --> 0:07:04.599 valuable private startup. But you know it's also in the 0:07:04.600 --> 0:07:07.320 backdrop of Elon Musk and the President of the United States. 0:07:07.600 --> 0:07:11.760 SpaceX relies heavily on contracts from the US government defense apparatus, 0:07:12.480 --> 0:07:15.440 but it also dominates commercial payload to orbit, and that 0:07:15.560 --> 0:07:19.640 valuation continues to climb with a really heavy emphasis on starlink. 0:07:19.680 --> 0:07:21.400 A big part of it as well, of course, is 0:07:21.440 --> 0:07:24.760 about employee liquidity and talent, because there are people that 0:07:24.840 --> 0:07:27.440 worked at SpaceX for a really long time and stock 0:07:27.520 --> 0:07:29.440 is a big part of comp Loads of people watching 0:07:29.440 --> 0:07:32.320 this show will know that. But it continues to go up, 0:07:32.320 --> 0:07:33.440 and that's super interesting. 0:07:33.680 --> 0:07:36.760 It is still validation in Elon Inc. It feels at 0:07:36.800 --> 0:07:39.720 this moment. But what everyone's going to be talking about 0:07:39.720 --> 0:07:41.280 where you sit is also a bit of M and 0:07:41.360 --> 0:07:43.560 A and a healthy amount potentially going on in the 0:07:43.600 --> 0:07:44.320 media landscape. 0:07:44.360 --> 0:07:48.360 Talk to us about Ane, Yeah. 0:07:48.200 --> 0:07:50.080 I mean, this is the history of all and Cohen, 0:07:50.120 --> 0:07:52.640 Sun Valley, right, TMT and M and A. And the 0:07:52.680 --> 0:07:54.400 news that we've had in the last twenty four hours 0:07:54.480 --> 0:07:56.600 is that A and E, which is the joint venture 0:07:56.640 --> 0:07:59.760 between Disney and Hurst, is available for sale. That's kind 0:07:59.800 --> 0:08:02.800 of like the cable channels, including History Channel, shout out 0:08:02.840 --> 0:08:03.480 History channels to. 0:08:03.480 --> 0:08:04.200 Those that watch it. 0:08:04.560 --> 0:08:06.640 Bob Iger walked past and we asked him, can we 0:08:06.640 --> 0:08:08.600 talk a little bit about A and E? And he said, 0:08:08.600 --> 0:08:10.440 I'm not going to be talking about that right now, 0:08:10.640 --> 0:08:13.240 but it is some property up for grabs. And then 0:08:13.280 --> 0:08:15.920 you have Warner Brothers Discovery that's on a path to 0:08:15.960 --> 0:08:19.160 split between a pure place streaming business and a pure 0:08:19.160 --> 0:08:21.240 place studio business. And we did catch up with David 0:08:21.320 --> 0:08:24.440 Zaslov who said, like, look, we're on track. There are 0:08:24.440 --> 0:08:27.840 no approvals needed. We aren't ready to talk about the 0:08:27.840 --> 0:08:30.880 debt side of this, but all of that indicates that 0:08:31.000 --> 0:08:34.120 in this space some stuff might happen, and I think 0:08:34.160 --> 0:08:35.600 that's what people are going to be talking about a 0:08:35.640 --> 0:08:39.320 lot in in amongst all of the seminars and coffee 0:08:39.320 --> 0:08:40.960 stops in the next few days, a. 0:08:40.920 --> 0:08:42.920 History lesson on the History Channel and the history of 0:08:42.920 --> 0:08:45.240 Allen co Ed Lulow out in Idaho. 0:08:45.640 --> 0:08:46.880 Love catching ups soon. 0:08:47.400 --> 0:08:50.320 Meanwhile, let's dive into all of this with Scott Lanner 0:08:50.360 --> 0:08:53.880 from Horizon Investments, who, of course is taking a temperature 0:08:53.920 --> 0:08:56.760 gauge of the markets right now. And Scott, we're looking 0:08:56.800 --> 0:08:58.400 at maybe a little bit of em and a coming 0:08:58.400 --> 0:09:01.880 to bear. We're seeing phenomenal valuations on the public market 0:09:02.040 --> 0:09:04.320 with a new four trillion dollar company if we can 0:09:04.480 --> 0:09:07.319 retain it back for Nvidia and that four hundred billion 0:09:07.320 --> 0:09:09.280 dollar private valuation for SpaceX. 0:09:09.840 --> 0:09:11.440 Can we sustain these sorts of valuations? 0:09:11.480 --> 0:09:15.959 Scott, Hey, Caroline, you know, like long as a short yes, 0:09:16.000 --> 0:09:17.920 I think we can. And the reason why we probably 0:09:17.960 --> 0:09:20.760 can is because these companies are growing into the valuations 0:09:20.760 --> 0:09:23.520 that the market is placing upon them. This is not like, 0:09:23.760 --> 0:09:25.240 you know, kind of not not like the nineties where 0:09:25.240 --> 0:09:27.200 where those companies really sort of got ahead of themselves 0:09:27.240 --> 0:09:30.200 there weren't making enough money to justify the valuations ultimately. 0:09:30.880 --> 0:09:34.080 But these you know, this, this you know, this generation's Internet, 0:09:34.440 --> 0:09:37.200 this generations tech companies you know have have ros in 0:09:37.240 --> 0:09:39.040 the thirties and and you know that is a very 0:09:39.080 --> 0:09:42.360 sustainable kind of valuation metric that we can that we 0:09:42.400 --> 0:09:44.360 can use to say, yeah, this is this is pretty 0:09:44.360 --> 0:09:46.080 sustainable right now like these this is this is we're 0:09:46.080 --> 0:09:47.640 not multatory anywhere close to it. 0:09:47.960 --> 0:09:51.080 I mean, return on equity looking still healthy and. 0:09:50.920 --> 0:09:53.680 Not too eye watering, Scott. 0:09:53.720 --> 0:09:55.800 Will that be vindicated in the earning season that we're 0:09:55.800 --> 0:09:58.240 about to get. Will Microsoft for some of these particular 0:09:58.360 --> 0:10:01.080 the hyperscalers be able to co to the spending that 0:10:01.200 --> 0:10:02.840 drives in video yet further higher? 0:10:03.320 --> 0:10:05.520 Yeah, that is obviously the trillion dollar question, Joe. Do 0:10:05.559 --> 0:10:08.800 we get continued growth and continued upward pressure on those 0:10:08.920 --> 0:10:11.280 ro and kind of kind of metrics you get the 0:10:11.400 --> 0:10:15.319 ro expansion by by having additional profitability, additional market, additional 0:10:15.360 --> 0:10:17.720 margin expansion, and just and just overall is just better 0:10:17.720 --> 0:10:20.560 accution on the business side. And and if these companies 0:10:20.559 --> 0:10:22.400 can continue to do that, then there's there's no reason 0:10:22.440 --> 0:10:24.840 why we can't be substantially higher in a year from 0:10:24.880 --> 0:10:26.880 now in many of these companies than we are right now. 0:10:27.080 --> 0:10:28.960 Our expectation is that that's going to continue. There's no 0:10:29.000 --> 0:10:31.080 reason why it really shouldn't. At this point. We are 0:10:31.120 --> 0:10:33.880 still early stages of the AI revolution, and that is 0:10:33.880 --> 0:10:34.920 our expectation currently. 0:10:35.080 --> 0:10:38.040 I mean, I guess the extraordinary matter of all of 0:10:38.040 --> 0:10:39.880 this is, of course we saw the biggest sell off 0:10:39.920 --> 0:10:42.400 ever in a market capitalization of Nvideo just in February 0:10:42.400 --> 0:10:44.760 because of the worry of deep Seed. But we also 0:10:44.840 --> 0:10:47.720 have the tariff anxiety that just doesn't seem to impede 0:10:47.760 --> 0:10:51.319 its valuation. Is that something that could knock off valuations 0:10:51.400 --> 0:10:53.120 or do you think we're getting numbed to tariffs? 0:10:53.800 --> 0:10:54.760 We're definitely getting numb. 0:10:54.760 --> 0:10:56.160 I mean, look that the market is not trading like 0:10:56.160 --> 0:10:58.520 it used to in April on based on the tariff headlines. 0:10:58.559 --> 0:11:00.839 You see, there's just sort of a diminished return towards 0:11:01.000 --> 0:11:03.360 towards the shock the mark is able to absorb with 0:11:03.400 --> 0:11:04.760 these because now we sort of get we think we 0:11:04.840 --> 0:11:07.200 understand what what the playbook looks like. Playbook looks like, 0:11:07.240 --> 0:11:09.520 you know, you know, talk tough and then eventually find 0:11:09.559 --> 0:11:11.560 some way to get a deal as acceptable to everybody, 0:11:11.920 --> 0:11:13.800 and that if that that continues to pace, then that 0:11:13.840 --> 0:11:16.440 there's no reason why, you know, why the market can't 0:11:16.600 --> 0:11:19.240 sort of sustain these types of levels. But you know 0:11:19.280 --> 0:11:21.880 that that you know that getting getting comfortable with the 0:11:21.880 --> 0:11:23.280 way that that the terroifts are going to end up 0:11:23.280 --> 0:11:25.520 going and figuring out the market frankly is starting to 0:11:25.520 --> 0:11:27.920 figure out that there's not really an alternative still to 0:11:28.040 --> 0:11:30.360 to to Nvidian and some of those ships. Despite this, 0:11:30.480 --> 0:11:32.680 there's does wite some of the deep seat stuff and 0:11:32.720 --> 0:11:34.920 that's why we've recaptured, you know, these all time highs 0:11:34.920 --> 0:11:35.640 and valuations. 0:11:35.840 --> 0:11:38.720 It does seem to be a story of AI winners 0:11:38.840 --> 0:11:41.520 and then the laggards, and we're talking tough. Has really 0:11:41.559 --> 0:11:43.680 got hard today is on Apple once again, Peter Navarro 0:11:43.800 --> 0:11:46.240 calling it out, saying they think they're too big to tariff. 0:11:46.640 --> 0:11:48.560 Are we just going to see more money pile into 0:11:48.559 --> 0:11:50.600 the infrastructure, air or what point are we going to 0:11:50.640 --> 0:11:53.560 start to see companies winning out with the application of AI, 0:11:53.679 --> 0:11:55.200 which thus far Apple doesn't seem to. 0:11:55.200 --> 0:11:55.680 Be on top of. 0:11:56.400 --> 0:11:58.480 Yeah, we think that's probably a twenty twenty, like late 0:11:58.480 --> 0:12:01.200 twenty twenty by early twenty sixth story. You know, as 0:12:01.480 --> 0:12:03.079 we move from the you know, the makers of the 0:12:03.120 --> 0:12:05.480 stuff to the users of the stuff and that and 0:12:05.480 --> 0:12:07.240 that's probably gonna be the most important and that's being 0:12:07.320 --> 0:12:09.480 called to make as we as we come into next year, 0:12:09.520 --> 0:12:11.600 is like figuring out which companies and which sectors are 0:12:11.640 --> 0:12:14.280 actually able to use the AI technology which is amazing 0:12:14.559 --> 0:12:17.920 to increase profit margins, to increase productivity and and that 0:12:18.040 --> 0:12:19.360 you know, that's we're spending quite a lot of time 0:12:19.400 --> 0:12:22.000 on that on that here at Horizon, and it's it's 0:12:22.000 --> 0:12:24.280 something that we're actually pretty excited about. But you know, 0:12:24.320 --> 0:12:26.720 the the focus on the intense focus we've had on 0:12:26.720 --> 0:12:28.960 the infrastructure side try not can go away. It's you know, 0:12:28.960 --> 0:12:30.920 it's not it can be diminished, but it's kind of 0:12:30.920 --> 0:12:33.319 broughten out towards towards more more towards those users and 0:12:33.520 --> 0:12:35.360 in some of the ultimate winners in the space, which 0:12:35.400 --> 0:12:37.400 which are always the users of the technology rather than 0:12:37.400 --> 0:12:38.280 the makers of the technology. 0:12:38.320 --> 0:12:40.440 I mean, I know you say it's still early days, 0:12:40.440 --> 0:12:42.360 but can you give us an inkling of where you're 0:12:42.400 --> 0:12:43.559 getting most excited about. 0:12:43.679 --> 0:12:45.559 Is it a healthcare space, is it elsewhere? 0:12:46.480 --> 0:12:48.760 Healthcare is definitely one of the top of the mind 0:12:48.800 --> 0:12:50.800 in terms of the people that can use this to 0:12:51.000 --> 0:12:53.360 just really speed up the drug development is like an 0:12:53.360 --> 0:12:55.839 obvious application for some of these things. I Mean, the 0:12:56.160 --> 0:12:58.560 exciting thing, Caroline, I think is we don't really know 0:12:58.640 --> 0:13:00.880 what that's what's around the corner. I'm not smart to 0:13:00.880 --> 0:13:02.880 figure out like what the next shoe drop is and 0:13:02.920 --> 0:13:04.880 like which which companies and sectors are you're really going 0:13:04.960 --> 0:13:07.520 to take, especially the agenic AI and into the ends 0:13:07.520 --> 0:13:09.560 of the next level. And so you know, we are 0:13:09.559 --> 0:13:11.360 spending a fair amount time kind of figure that stuff 0:13:11.360 --> 0:13:13.200 out right now, but I don't know what I don't know. 0:13:13.360 --> 0:13:14.480 And that's actually one of. 0:13:14.440 --> 0:13:16.800 Some of the most exciting parts about this is you know, 0:13:16.800 --> 0:13:18.680 really have to stay front footed and do and do 0:13:18.720 --> 0:13:21.040 the research and just listen to what you're what you're seeing. 0:13:21.360 --> 0:13:23.760 And Scott, therefore, do you take money out of prior 0:13:23.840 --> 0:13:26.760 winners to allocate to the future ones or are you 0:13:26.840 --> 0:13:29.880 taking out of just lagging industry groups that you just 0:13:29.920 --> 0:13:31.079 don't want to be allocated to. 0:13:31.080 --> 0:13:31.520 At the moment. 0:13:32.120 --> 0:13:33.880 I think it's more it's more, you know, you probably 0:13:33.880 --> 0:13:35.760 do take some out of the infrastructure plas you you 0:13:35.760 --> 0:13:37.800 take some out of the prior winners. You know, some 0:13:37.840 --> 0:13:39.720 have the videos of the world. And but but like 0:13:39.760 --> 0:13:42.079 as I said earlier, Carolyn, it's more of a broadening play. 0:13:42.240 --> 0:13:44.199 So you know, I think you actually increase the overall 0:13:44.440 --> 0:13:47.880 allocation towards AI in your portfolio. But and you're taking 0:13:47.960 --> 0:13:49.520 out some of you know, some of like in the 0:13:49.679 --> 0:13:51.640 the envitees of the world. You're also taking out of 0:13:51.679 --> 0:13:54.559 like industrials, you're taking out of you know, like utilities, 0:13:54.559 --> 0:13:55.559 and you're gonna take it out of some of the 0:13:55.559 --> 0:13:57.840 more borings like staples types of things. You know, you 0:13:57.840 --> 0:14:00.440 probably just want to allocate out of those types of 0:14:00.440 --> 0:14:04.320 sectors and just overall increase your breadth you AI in 0:14:04.360 --> 0:14:05.079 your portfolio. 0:14:05.600 --> 0:14:08.880 Scott Lander of Rising Investments, Chief investment Officer, thanks for 0:14:08.960 --> 0:14:09.640 pushing us forward. 0:14:09.720 --> 0:14:13.600 We appreciate it. Coming out, Samsung unveils a slew of 0:14:13.679 --> 0:14:15.880 new foldable phones. Were on that. 0:14:15.960 --> 0:14:26.200 Next, this is Reuberg Tech. It's time now for talking 0:14:26.240 --> 0:14:29.280 tech and first up. Waimo's first self driving taxis have 0:14:29.400 --> 0:14:32.920 arrived in New York City, but Ford Autonomous Operations remain 0:14:33.000 --> 0:14:34.320 pending regulatory approval. 0:14:34.600 --> 0:14:34.680 Now. 0:14:34.800 --> 0:14:37.400 In the meantime, the company is collecting data across the 0:14:37.440 --> 0:14:40.160 city the safety drivers behind the wheel as it awaits 0:14:40.200 --> 0:14:41.920 to begin self driving tests. 0:14:42.360 --> 0:14:43.680 Plus, a California. 0:14:43.240 --> 0:14:46.320 Lawmaker makes another push to regulate AI in the state. 0:14:46.680 --> 0:14:49.520 Senator Scott Wiener has introduced a bill that will require 0:14:49.520 --> 0:14:53.280 companies developing certain AI models to publicly release safety and 0:14:53.320 --> 0:14:56.160 security protocols. The bill is expected to go before a 0:14:56.200 --> 0:15:00.600 California Assembly committee later this month. And Samsung unveiled it 0:15:00.640 --> 0:15:03.560 is the latest smartphones and wearable devices and its annual 0:15:03.720 --> 0:15:07.720 Unpacked event is announced three new foldable devices, each thinner 0:15:07.960 --> 0:15:11.240 lighter than previous iterations. The company also revealed a new 0:15:11.280 --> 0:15:12.920 line of upgrade A smart watches. 0:15:13.280 --> 0:15:15.480 They use Google's Gemina AI. 0:15:16.200 --> 0:15:19.520 Now for more on Samsung and plenty elsewhere in consumer tech, 0:15:19.520 --> 0:15:21.680 mallu Meg's Mark gum And joins us, you haven't had 0:15:21.680 --> 0:15:22.360 your hands on. 0:15:22.320 --> 0:15:24.400 These things, they look pretty good. What do you make 0:15:24.440 --> 0:15:25.640 of the announcements from Unpacked? 0:15:27.040 --> 0:15:29.480 I think these are hugely significant announcements. 0:15:29.480 --> 0:15:33.360 What Samsung is trying to do Year is take buldabule's mainstream. 0:15:33.520 --> 0:15:35.920 So two main levers they've pulled here. 0:15:36.800 --> 0:15:40.680 One they've widened the display so they've made it less narrow. 0:15:40.760 --> 0:15:44.640 This is an older Samsung foldable right here, and you 0:15:44.640 --> 0:15:45.320 can see. 0:15:45.120 --> 0:15:46.120 How narrow it is. 0:15:46.480 --> 0:15:49.400 And if you're used to working on an iPhone or 0:15:49.400 --> 0:15:52.920 a regular Samsung phone, the narrow form factor makes it 0:15:53.000 --> 0:15:55.400 quite difficult to you. So they've expanded it so now 0:15:55.600 --> 0:15:58.920 in the closed state. The new foldable fold this is 0:15:58.920 --> 0:16:01.520 the two thousand dollars model, feels like a normal candy 0:16:01.560 --> 0:16:03.480 bar phone that you can then open up to have 0:16:03.600 --> 0:16:06.560 even more screen real estate. The other thing they've done 0:16:06.680 --> 0:16:10.280 is they've released a sub thousand dollars foldable. This is 0:16:10.320 --> 0:16:13.240 a new version of the Flip that's their vertical phone, 0:16:13.800 --> 0:16:16.400 and that rice point makes it a lot more compelling 0:16:16.760 --> 0:16:17.720 and is taking it. 0:16:17.640 --> 0:16:19.880 Out of the early adopter price range. 0:16:20.000 --> 0:16:23.720 And it's interesting because foldables have been popular amongst the 0:16:23.760 --> 0:16:27.600 early adopter crowd, some of the tech year crowd, more 0:16:27.640 --> 0:16:30.720 of the productivity focused crowd, but now Samsung is trying 0:16:30.760 --> 0:16:33.400 to take it mainstream. And really those were the two 0:16:33.440 --> 0:16:35.480 levers they needed to pull in order to accomplish that, 0:16:35.840 --> 0:16:39.200 So we'll see what happens. Next year, Apple will announce 0:16:39.200 --> 0:16:42.240 their foldable, which certainly is going to bring a much 0:16:42.280 --> 0:16:45.680 bigger spotlight to the category, not only for its own 0:16:45.800 --> 0:16:48.280 product that they're unveiling, but for everyone else who already 0:16:48.320 --> 0:16:49.720 has foldables on the market. 0:16:49.600 --> 0:16:51.760 And mark just spotlight app a little bit more for 0:16:51.880 --> 0:16:54.400 us because you brought us that news yesterday that a 0:16:54.480 --> 0:16:59.640 changing of the guards COO is now departing. Perhaps not unexpectedly, 0:17:00.960 --> 0:17:02.120 it's a blockbuster move. 0:17:03.120 --> 0:17:06.320 As one former Apple executive told me, the band is dissolving. 0:17:06.880 --> 0:17:09.640 Right at some point in the next few years, it's 0:17:09.680 --> 0:17:12.720 going to be Tim Cook left standing with a whole 0:17:12.760 --> 0:17:18.200 new executive team around him. These are serious organizational changes 0:17:18.240 --> 0:17:21.960 happening at Apple. There are more to come, obviously. Jeff 0:17:21.960 --> 0:17:25.639 Williams was the long time number two at Apple to Cook, 0:17:26.000 --> 0:17:30.800 but really primary decision maker when it came to product development, 0:17:31.359 --> 0:17:35.480 which products Apple should launch, what it shouldn't launch. Really 0:17:35.520 --> 0:17:39.760 deep in the weeds on expansion for manufacturing into new areas, 0:17:40.359 --> 0:17:44.000 obviously dealing with tariffs, obviously dealing with their AI struggles. 0:17:44.600 --> 0:17:46.119 There's really no sugarcoating it. 0:17:46.240 --> 0:17:50.560 This is one of the most significant departures in Apple's history. 0:17:51.119 --> 0:17:54.080 Hey ed watches how What's interesting though, is Sabi Khan, 0:17:54.119 --> 0:17:57.080 who takes the reins, has been there for three decades 0:17:57.280 --> 0:17:59.840 and has been managing supply chain. But who do we 0:18:00.160 --> 0:18:03.040 to now mark the new guard that might even one 0:18:03.119 --> 0:18:04.280 day replace him? 0:18:04.280 --> 0:18:06.440 Cook himself well. 0:18:06.240 --> 0:18:07.360 On Selby Kahan. 0:18:07.440 --> 0:18:09.560 He has been there three decades, is only a few 0:18:09.600 --> 0:18:12.200 years younger than Jeff Williams. So you're going to see 0:18:12.200 --> 0:18:15.080 another COO transition in a few years from now. Right, 0:18:15.320 --> 0:18:17.040 You're going to see a lot of movement on the 0:18:17.040 --> 0:18:19.480 Apple executive team over the next few years. You've seen 0:18:19.520 --> 0:18:22.359 a lot over the past few years. We've been talking 0:18:22.400 --> 0:18:25.080 about this several times. I think we've had conversations about this. 0:18:25.119 --> 0:18:28.200 I've written several articles on this. Terms of the next CEO, 0:18:28.359 --> 0:18:31.159 look no further than John turnas the senior VP of 0:18:31.160 --> 0:18:32.520 Hardware Engineering at Apple. 0:18:33.320 --> 0:18:36.359 We keep all eyes on him. Mark German always ahead 0:18:36.359 --> 0:18:37.520 of the curve. We appreciate it. 0:18:43.160 --> 0:18:46.119 A Rivian back startup that's developing small e these is 0:18:46.160 --> 0:18:48.560 getting valued at a billion dollars in new investment from 0:18:48.640 --> 0:18:51.760 Green Oak's capital, and the company called Also Inc. Was 0:18:51.800 --> 0:18:54.960 spun out of Rivian earlier this year also well, it 0:18:55.000 --> 0:18:58.080 hasn't revealed specifics, but said it's tech platform will be 0:18:58.080 --> 0:19:03.280 applicable to e Bike's microcrs and neighborhood evs. Meanwhile, French 0:19:03.320 --> 0:19:05.879 AI start up Mistral is in talks to raise as 0:19:05.920 --> 0:19:08.800 much as one billion dollars in equity from several investors, 0:19:09.160 --> 0:19:13.480 including Abidabi Fund, mgx Sort, according to sources. For more, 0:19:13.560 --> 0:19:15.400 we go out to Blue Meg's Mark Bergen, who helped 0:19:15.400 --> 0:19:18.280 break this story and just focusing on Mistrale here. They've 0:19:18.320 --> 0:19:20.480 already raised about a billion before in equity, but they're 0:19:20.480 --> 0:19:22.560 also looking to the debt markets as well. 0:19:24.000 --> 0:19:24.440 That's right. 0:19:24.480 --> 0:19:26.280 I mean it's a move that we've seen Elon do 0:19:26.440 --> 0:19:32.080 with Xai. I mean, these are incredibly compute, computational intensive businesses, 0:19:32.160 --> 0:19:34.560 especially if you're trying to build language models and the 0:19:34.640 --> 0:19:36.600 kind of keep up with the frontier of Open Ai 0:19:36.720 --> 0:19:39.800 and Google. Miestrel has I think tapped the brakes a 0:19:39.800 --> 0:19:42.359 little bit on that being a direct competitor to open Ai, 0:19:42.440 --> 0:19:44.000 but they still want to be in this sort of 0:19:44.240 --> 0:19:49.000 generative AI model game that's very expensive, both as we've 0:19:49.000 --> 0:19:52.000 talked about a lot on the show, for hiring engineers, 0:19:52.920 --> 0:19:55.680 and then it's very expensive for these these big data 0:19:55.680 --> 0:19:58.480 center projects that they announced earlier this year. So that's 0:19:58.480 --> 0:20:01.520 why we believe they're actually I'm not raising this equity round, 0:20:01.560 --> 0:20:04.480 but also seeming the race probably almost half as much 0:20:04.760 --> 0:20:05.440 in debt. 0:20:05.640 --> 0:20:08.480 Wow, and go back to those data center announcements because 0:20:08.560 --> 0:20:11.200 Abidabi's involved in that too, just tell us about how 0:20:11.280 --> 0:20:13.000 much this is political in many ways. 0:20:14.240 --> 0:20:14.520 I think. 0:20:14.520 --> 0:20:17.760 So this is partially We've seen a bilateral agreement coming 0:20:17.800 --> 0:20:20.880 out a few months back to the UAE in France 0:20:20.920 --> 0:20:23.440 talking about building the biggest data centers in Europe. 0:20:24.119 --> 0:20:25.520 MGX was part of that. 0:20:25.640 --> 0:20:28.080 There was a commitment of somewhere between thirty to fifty 0:20:28.160 --> 0:20:33.399 billion euros in funding for data centers across France. MGX 0:20:33.600 --> 0:20:36.480 has basically taken a portfolio strategy. 0:20:36.240 --> 0:20:37.440 If they go through with this deal. 0:20:38.119 --> 0:20:41.200 We've also reported that they're in talks to invest with Inthropic, 0:20:41.240 --> 0:20:44.280 They've invested in open Ai, they invested in XAI. They 0:20:44.280 --> 0:20:47.320 are getting behind sort of every major player in this 0:20:47.480 --> 0:20:51.159 AI race. I believe they're probably gonna do something similar 0:20:51.200 --> 0:20:54.200 with infrastructure. We do see something similar on the energy 0:20:54.440 --> 0:20:55.680 and on the chip side as well. 0:20:55.840 --> 0:21:00.600 It's interesting because we've had perhaps some pieces so surprisingly 0:21:00.680 --> 0:21:03.120 within the contracts that assign when you're giving money. As 0:21:03.200 --> 0:21:06.040 of course you can't be sharing information when you're invested 0:21:06.119 --> 0:21:08.600 in so many of these startups. But if you're looking 0:21:08.640 --> 0:21:12.360 at mistrial versus XAI or open AI, where are those 0:21:12.560 --> 0:21:15.560 niche Because they're not more broad anymore. 0:21:16.720 --> 0:21:18.800 Right, they're not more broad and they're not necessarily as 0:21:18.800 --> 0:21:22.200 commercially successful or building the sort of cutting edge models. 0:21:22.440 --> 0:21:24.440 I mean, their niche has been and their selling point 0:21:24.520 --> 0:21:27.560 is sort of we are an open source alternative. We 0:21:27.720 --> 0:21:30.320 are the sort of sovereign AI where the will come 0:21:30.320 --> 0:21:32.840 in and kind of build you these AI services that 0:21:32.880 --> 0:21:34.200 can live in a private cloud. 0:21:35.040 --> 0:21:36.560 They're targeting governments. 0:21:36.600 --> 0:21:39.240 They've started working on defense in France and Europe in 0:21:39.280 --> 0:21:42.040 a time when sovereign AI is certainly like a marketing 0:21:42.119 --> 0:21:44.040 term thrown around a lot, but it is something that's 0:21:44.080 --> 0:21:47.960 become much more politically critical where countries and companies in 0:21:48.000 --> 0:21:51.120 Europe are looking to rely on local tech as much 0:21:51.119 --> 0:21:51.600 as they can. 0:21:51.920 --> 0:21:54.640 Is Mestra like the pin up for Europe right now? 0:21:56.600 --> 0:21:59.959 I mean, right now they are they're certainly the highest. 0:22:00.080 --> 0:22:01.520 This would make them the most valuable. I think they're 0:22:01.520 --> 0:22:02.359 probably the most valuable. 0:22:02.359 --> 0:22:04.920 We don't an evaluation for Wave, which is a self 0:22:05.000 --> 0:22:09.480 driving company based here in the UK. I think there's 0:22:09.560 --> 0:22:12.440 been a little bit of wavering enthusiasm for Miestro. I 0:22:12.440 --> 0:22:14.440 don't think people have been asn't impressed with their models, 0:22:15.040 --> 0:22:16.760 but there's certainly a lot of energy and certainly a 0:22:16.760 --> 0:22:18.520 lot of investor money tied up with their success. 0:22:18.800 --> 0:22:21.040 M Meg's mart Bergen coming to us from London. We 0:22:21.080 --> 0:22:21.719 appreciate it. 0:22:27.520 --> 0:22:28.760 Welcome back to lu Meg Tech. 0:22:28.840 --> 0:22:30.680 Let's take a look at these markets that are very 0:22:30.680 --> 0:22:33.359 close to record highs. We have the NASAK one hundred 0:22:33.359 --> 0:22:35.680 currently powering up full tens of percent. We're shaking off 0:22:35.720 --> 0:22:38.240 some of that trade anxiety and we're seeing. 0:22:38.080 --> 0:22:39.800 Some of the key leaders of the pack drivers. 0:22:39.800 --> 0:22:42.879 From a points perspective, yes, Apple is lower, particularly worrying 0:22:42.880 --> 0:22:45.480 about TARIS to them as again today, but let's look 0:22:45.520 --> 0:22:48.320 at what is really on the points perspective driving us higher. 0:22:48.600 --> 0:22:49.119 In video. 0:22:49.480 --> 0:22:53.240 We have at one point hit four trillion dollars in 0:22:53.320 --> 0:22:55.679 market capitalization, never been seen before. 0:22:55.960 --> 0:22:58.000 We're up more than two percent, is a record high 0:22:58.280 --> 0:22:58.840 for the AI. 0:22:58.960 --> 0:23:03.400 Darling Amazon also helping contribute from more points perspective. Microsoft 0:23:03.480 --> 0:23:05.520 two that's got an upgrade, but Amazon doing well at 0:23:05.520 --> 0:23:06.480 one point three percent. 0:23:07.119 --> 0:23:09.800 NASA's Prime Day is in full swing. 0:23:10.200 --> 0:23:12.840 We are stretching now over four days this year, up 0:23:12.880 --> 0:23:15.280 from two in twenty twenty four. That it remains to 0:23:15.280 --> 0:23:18.479 be seen whether that will entice shoppers and sellers alike. This, 0:23:18.560 --> 0:23:21.640 of course in the context of rising tariffs and rising prices. 0:23:22.119 --> 0:23:24.720 Let's get more on the inside track. Jamal Ghani's with 0:23:24.800 --> 0:23:26.760 US vice president of Amazon Prime. 0:23:27.000 --> 0:23:32.439 And you're really already seeing Jamil Adobe Analytics saying that 0:23:32.560 --> 0:23:35.960 US retailers drove close to eight billion in online spending 0:23:36.040 --> 0:23:39.159 on July eighth, up almost ten percent, and single biggest 0:23:39.200 --> 0:23:42.280 e commerce day so far this year is sent have 0:23:42.280 --> 0:23:42.680 been good. 0:23:42.720 --> 0:23:47.320 Therefore, Yeah, we just started the event yesterday, so it's 0:23:47.480 --> 0:23:50.280 very early, but we're really pleased by the engagement that 0:23:50.280 --> 0:23:53.320 we're getting from our customers and our members. Not only 0:23:53.359 --> 0:23:55.639 is the event twice as long, so four days, as 0:23:55.680 --> 0:23:58.720 you mentioned, but we're also offering more than double the 0:23:58.800 --> 0:24:01.280 number of deals that are fifty percent off or more. 0:24:01.600 --> 0:24:04.080 That's striving engagement across the millions of deals we have 0:24:04.160 --> 0:24:06.800 in thirty five categories. So we're really pleased. But it's 0:24:06.880 --> 0:24:08.040 very early, of course. 0:24:08.320 --> 0:24:11.119 Why make it four days, and how is that affecting 0:24:11.160 --> 0:24:12.880 the pace of spending do you. 0:24:12.840 --> 0:24:17.200 Think, Well, we listen to our members and they told 0:24:17.240 --> 0:24:20.399 us they needed more time to shop the millions of. 0:24:20.400 --> 0:24:23.600 Deals that we offer across our entire store. This gives 0:24:23.640 --> 0:24:23.960 them that. 0:24:24.000 --> 0:24:28.640 We're also offering new AI tools to get a more personalized, 0:24:28.720 --> 0:24:33.240 more targeted experience that allows our members to shop both 0:24:33.280 --> 0:24:34.000 the needs that. 0:24:33.960 --> 0:24:36.280 Are on their list but also the wants. And you 0:24:36.320 --> 0:24:37.720 see that in the data already. 0:24:38.000 --> 0:24:41.120 The top categories that our members are engaging with are 0:24:41.440 --> 0:24:47.159 health and personal care, apparel, beauty, home, kitchen, and really 0:24:47.200 --> 0:24:51.399 it's stretching the entire entirety of the store and members 0:24:51.400 --> 0:24:53.040 need time to shop it, and so we've given them 0:24:53.080 --> 0:24:55.160 double that time needs and wants. 0:24:55.200 --> 0:24:56.480 That's an interesting way of putting it. 0:24:56.560 --> 0:25:00.000 We've seen a lot of spend galvanizing groceries, for example, 0:25:00.080 --> 0:25:02.120 in some of the competitors. Is that an error you're 0:25:02.119 --> 0:25:04.040 feeling you're having to make more inroads in when you 0:25:04.119 --> 0:25:06.280 show that you can discount in this particular. 0:25:05.880 --> 0:25:09.800 Time, you know, grocery and everyday essentials, which is the 0:25:09.840 --> 0:25:13.399 broader definition we use internally to describe those things that 0:25:13.440 --> 0:25:15.960 a busy household needs to keep running and you know, 0:25:16.640 --> 0:25:19.760 deal with all the things that come their way, and 0:25:19.880 --> 0:25:23.879 we're investing heavily. That's the fastest growing part of our store. 0:25:24.240 --> 0:25:26.000 And you know, some of the items that are really 0:25:26.040 --> 0:25:29.439 resonating with our members during prime day already are like 0:25:29.560 --> 0:25:33.320 down Platinum powerwash, Disphray, something that my household, your household 0:25:33.359 --> 0:25:36.320 likely has it under the cupboards. It's also Crest three 0:25:36.359 --> 0:25:40.000 D white strips, Amazon Basic Triple A batteries. It's these 0:25:40.600 --> 0:25:43.240 essentials that you need for modern life, but it's also 0:25:43.280 --> 0:25:45.280 the other end of the spectrum. Beauty is a really 0:25:45.320 --> 0:25:48.439 exciting part of our store. Medcube has a number of 0:25:48.480 --> 0:25:51.359 fantastic products on sale. One of the top products so 0:25:51.400 --> 0:25:53.080 far is their zero core pads. 0:25:53.080 --> 0:25:54.600 So you can see just even in. 0:25:54.600 --> 0:25:57.800 The data of what members are scooping up in terms 0:25:57.800 --> 0:26:01.480 of savings. It's stretching from you know, the things you 0:26:01.560 --> 0:26:03.960 need to do in order to keep life moving all 0:26:04.000 --> 0:26:08.040 the way to what you would consider more wants as well, 0:26:08.040 --> 0:26:10.000 things you might have had on your list for a while. 0:26:10.160 --> 0:26:13.400 Apparently white Teeth needed to keep life moving. Jimil talk 0:26:13.440 --> 0:26:16.040 to us about Jenai though, because you just mentioned how 0:26:16.040 --> 0:26:19.240 that's helping it become more personalized. How's Rufus the shopping 0:26:19.240 --> 0:26:22.480 assistant doing. How more broadly is alexaplus doing Because I 0:26:22.520 --> 0:26:24.440 think as Adobe again saying that we're going to see 0:26:24.480 --> 0:26:26.919 more than three thousand percent increase in the use of 0:26:27.520 --> 0:26:29.359 Jenai in this particular spending screen. 0:26:30.200 --> 0:26:31.880 Yeah, Caroline, you're absolutely right. 0:26:32.200 --> 0:26:34.800 We've been investing for years, from the very beginning of Amazon, 0:26:34.800 --> 0:26:37.200 at the beginning of Amazon Prime, which is celebrating its 0:26:37.200 --> 0:26:40.040 twentieth anniversary this year, in all forms of AI. 0:26:40.640 --> 0:26:42.320 This year, we're bringing Rufus. 0:26:42.320 --> 0:26:44.959 As you said, is Rufus is smarter about Prime day. 0:26:45.040 --> 0:26:48.399 Rufus is smarter about your interests and can respond to 0:26:48.480 --> 0:26:52.119 natural language queries and bring back those deals that match 0:26:52.160 --> 0:26:52.920 those interests. 0:26:53.000 --> 0:26:54.720 We also have a product called. 0:26:54.600 --> 0:26:56.639 Interest where you can go in and with a simple 0:26:56.640 --> 0:26:59.119 set of statements, you can say, I'd like to remodel 0:26:59.160 --> 0:27:02.760 my live room in mid century modern. Please show me 0:27:02.840 --> 0:27:05.639 deals that are less than one hundred dollars, and it 0:27:05.680 --> 0:27:09.400 will proactively make that into the recommendations you see. 0:27:09.240 --> 0:27:10.080 Throughout the store. 0:27:10.280 --> 0:27:12.520 We also have shopping guides for those items that are 0:27:12.520 --> 0:27:15.040 a bit more considered. You know, I'm in the I'm 0:27:15.080 --> 0:27:17.720 in the shopping mode for a laptop, for my eldest daughter, 0:27:17.760 --> 0:27:20.719 who's eight, I don't buy a laptop that often, and 0:27:20.800 --> 0:27:24.399 these AI power shopping guides have been invaluable. And then lastly, 0:27:24.560 --> 0:27:27.720 Alexa plus is rolling out. Millions of members have access 0:27:27.800 --> 0:27:30.119 now and they're using it to check, you know, the 0:27:30.200 --> 0:27:33.439 timing for Prime Day, but also to get recommendations on 0:27:33.480 --> 0:27:35.920 deals and to be alerted when something that they've looked 0:27:35.920 --> 0:27:37.560 at previously is now on sale. 0:27:37.760 --> 0:27:40.000 Okay, so you're in the market to how you're eight 0:27:40.040 --> 0:27:42.280 year old. But what's interesting is Amazon seems to be 0:27:42.280 --> 0:27:44.879 in the market to learn more young adults. Right That 0:27:45.000 --> 0:27:47.680 is such a push right now? Why is that the 0:27:47.800 --> 0:27:49.359 area you want to make in roads? 0:27:50.320 --> 0:27:55.119 Well, we recognize that, you know, Prime exists to deliver 0:27:55.359 --> 0:28:00.399 three things convenience, savings, and entertainment behind one simple membership, 0:28:00.440 --> 0:28:03.440 and we hold ourselves to the bar of delivering disproportionate value. 0:28:03.960 --> 0:28:07.760 Everybody today and likely always wants to make a dollar stretch, 0:28:07.840 --> 0:28:11.320 and for younger customers that's more true than maybe for 0:28:11.400 --> 0:28:15.640 most and so we're reinventing our young adult program. Prime 0:28:15.720 --> 0:28:19.240 for young adults is fifty percent off, but now on 0:28:19.280 --> 0:28:22.400 top of that, we also are offering an evergreen five 0:28:22.480 --> 0:28:25.679 percent discount that for Prime Day is ten percent, so 0:28:25.720 --> 0:28:29.639 our members cannot only avail the great deals across the 0:28:29.760 --> 0:28:32.560 entire store that we've been talking about, but also add 0:28:32.600 --> 0:28:35.280 to it ten percent in categories that they really care about, 0:28:35.320 --> 0:28:39.680 like beauty, apparel, electronics, and so we're really proud of 0:28:40.480 --> 0:28:43.760 that program that offering to that key customer segment. 0:28:44.160 --> 0:28:46.800 See how much they love the lebron adds to Jimmy 0:28:46.800 --> 0:28:49.320 ol Ghani. Great to has some time with you Amazon 0:28:49.400 --> 0:28:53.480 Prime Worldwide. Meanwhile, coming up, we'll dive into how China 0:28:53.720 --> 0:28:56.960 is building data centers throughout the country's deserts and a 0:28:56.960 --> 0:29:08.960 bit of fuel Beijing's AI ambitions. As blommeg Tech, China 0:29:09.120 --> 0:29:12.360 is betting big on AI. We know this, but in 0:29:12.400 --> 0:29:16.280 a new Bloomberg investigation, we have found Chinese companies driven 0:29:16.320 --> 0:29:19.000 to build data centers in some of the most remote 0:29:19.040 --> 0:29:22.719 regions of the country to fuel Beijing's AI ambitions and 0:29:22.800 --> 0:29:27.040 looking to buy one hundred and fifteen thousand in video 0:29:27.080 --> 0:29:30.280 chips to power them. Lumo's Jackie Devolos joins us now 0:29:30.320 --> 0:29:32.640 for more so. On the edge of the Gobi Desert 0:29:32.960 --> 0:29:36.320 in modest county called yu Wu, I think has massive 0:29:36.720 --> 0:29:40.280 AI ambitions what draws them there In particular, why that 0:29:40.360 --> 0:29:41.920 spot because. 0:29:41.720 --> 0:29:44.560 This is in the Shinjiang region and a lot of 0:29:44.640 --> 0:29:48.880 US know about that region because of the controversy around 0:29:49.480 --> 0:29:54.040 labor issues, religious persecution. But it's also one of the 0:29:54.080 --> 0:29:58.160 most energy rich places in China. It's rich in solar, 0:29:58.440 --> 0:30:02.040 it's rich in wind, and it also has abundant coal energy, 0:30:02.360 --> 0:30:07.840 which is needed to power this massive AI infrastructure undertaking Caroline. 0:30:07.920 --> 0:30:09.920 It is one of the largest that we've seen come 0:30:09.960 --> 0:30:13.000 out of China, and in many ways it's almost, you know, 0:30:13.120 --> 0:30:18.200 garnering the same kind of clout as the US is Stargate. 0:30:18.520 --> 0:30:20.520 This is a huge undertaking. 0:30:20.640 --> 0:30:25.720 Thirty six data centers are planned and seventy percent are 0:30:25.800 --> 0:30:29.560 expected to be housed within a single compound, seventy percent 0:30:29.640 --> 0:30:33.120 of that capacity. It is massive when you think about 0:30:33.880 --> 0:30:37.560 just how much AI compute power China needs to kind of. 0:30:37.520 --> 0:30:39.080 Get up to speed to the US. 0:30:39.160 --> 0:30:41.160 But of course, the big question coming out of this 0:30:41.240 --> 0:30:45.360 story is how will they obtain these Nvidia chips one 0:30:45.400 --> 0:30:49.120 hundred and fifteen thousand to really get that power off 0:30:49.120 --> 0:30:49.560 the ground. 0:30:49.880 --> 0:30:53.160 That's so poignant because we know that China has energy, 0:30:53.200 --> 0:30:57.160 but it doesn't have the scale needed to create their 0:30:57.160 --> 0:30:59.880 own semiconductors sophisticated as ones as far as we on 0:31:00.200 --> 0:31:03.280 done now in Nvidio did weigh in and have been 0:31:03.320 --> 0:31:07.800 saying that ultimately this isn't what they believe is currently occurring. 0:31:07.800 --> 0:31:10.000 They say, trying to cobble together a data center from 0:31:10.040 --> 0:31:13.560 smuggled previous generation products makes no business or engineering sense. 0:31:13.640 --> 0:31:16.600 So where's this one hundred and fifteen thousand Nvidia chips 0:31:16.600 --> 0:31:17.040 coming from? 0:31:17.120 --> 0:31:18.120 Jackie Well? 0:31:18.360 --> 0:31:23.400 Reporters that put together this story really combed through tender documents, 0:31:23.520 --> 0:31:28.600 investment approvals, and other reporting that really didn't explain this, 0:31:28.760 --> 0:31:32.160 not in those documents. And perhaps it's for a reason 0:31:32.200 --> 0:31:35.800 because these are banned chips. China is not supposed to 0:31:35.840 --> 0:31:38.960 have access to them. Since October of twenty twenty two, 0:31:39.360 --> 0:31:42.440 these chips have been banned, so it's not clear exactly 0:31:42.600 --> 0:31:46.960 how this would occur. But of course one avenue is 0:31:47.000 --> 0:31:51.480 through smuggling, and even US officials have said that such 0:31:51.520 --> 0:31:55.400 a smuggling out operation would be too complex, so it 0:31:55.480 --> 0:31:58.600 is ambitious, but it's not clear just what measures they 0:31:58.640 --> 0:32:00.920 would need to take. Obviously, the United States has been 0:32:00.960 --> 0:32:04.960 taking a closer look at other countries where such smuggling 0:32:05.160 --> 0:32:10.400 could help China, Thailand and Malaysia being two countries. But 0:32:10.480 --> 0:32:12.880 this is a major focus for the Trump administration, which 0:32:12.920 --> 0:32:18.480 has really started to ramp up those efforts to curtail 0:32:18.800 --> 0:32:20.720 China's ability to get access. 0:32:20.440 --> 0:32:22.360 To these steps Caroline sort of a replacement to the 0:32:22.360 --> 0:32:26.160 AI diffusion rule, Bloomberg's Jackie Devolo's fantastic roundhup. 0:32:26.200 --> 0:32:26.520 Thank you. 0:32:26.760 --> 0:32:29.440 Now, let's keep discussing how the US can compete with 0:32:29.520 --> 0:32:30.880 China's growing AI efforts. 0:32:31.120 --> 0:32:32.200 But please to Welcome to the show. 0:32:32.240 --> 0:32:35.520 Jason Oxman, President and CEO of the Information Technology Industry Council, 0:32:35.760 --> 0:32:39.600 alongside New America's senior fellow Sam Sachs. And Sam, I 0:32:39.720 --> 0:32:44.400 start with you, because you've been assessing analyzing Chinese tech 0:32:44.400 --> 0:32:47.800 policy for decades. In the moment, what do you make 0:32:47.880 --> 0:32:50.960 of their belief system that they could access in video 0:32:51.040 --> 0:32:51.560 chips like this? 0:32:51.880 --> 0:32:52.320 Would they? 0:32:52.440 --> 0:32:53.840 I mean, I know you're about to go out to 0:32:53.960 --> 0:32:57.160 China for a KEYAI conference, then. 0:32:57.080 --> 0:32:59.560 Headed to Shanghai for the World AI Conference at. 0:32:59.440 --> 0:33:00.320 The end of the month. 0:33:01.200 --> 0:33:04.720 And the reality is both China and the United States 0:33:04.880 --> 0:33:09.800 are focused on getting the infrastructure necessary to win the 0:33:09.880 --> 0:33:12.360 so called AI race, and whether it's actually a race 0:33:12.440 --> 0:33:16.880 is a separate question, but data, energy, computation, and human 0:33:16.920 --> 0:33:21.160 capital are all critical inputs to this, and massive investment 0:33:21.160 --> 0:33:23.920 in infrastructure is top of mind for leaders in both 0:33:23.960 --> 0:33:25.560 countries as they seek to do it. 0:33:25.920 --> 0:33:26.160 Now. 0:33:26.200 --> 0:33:30.120 The question of chips is also colliding with the tariff battle. 0:33:30.640 --> 0:33:33.920 Expert controls and the question of whether the Trump administration 0:33:34.480 --> 0:33:38.040 will loosen its grip on China's access to the advanced 0:33:38.040 --> 0:33:42.000 technology advanced semiconductors is going to be a key question 0:33:42.040 --> 0:33:43.840 as these negotiations take place. 0:33:44.640 --> 0:33:47.040 Let's therefore, talk about what the executives are wanting at 0:33:47.040 --> 0:33:50.680 this moment. And Jason, you represent the most innovative companies 0:33:50.720 --> 0:33:54.520 in the United States, So how do they think about 0:33:54.560 --> 0:33:57.280 this so called competition with China? Are they thinking that 0:33:57.280 --> 0:33:59.240 they need to raise and where are our bottlenecks? 0:33:59.240 --> 0:34:01.400 More broadly here, it's very real. 0:34:01.560 --> 0:34:03.240 And if we go all the way back to the 0:34:03.400 --> 0:34:05.920 very second day of the Trump administration, you saw a 0:34:05.920 --> 0:34:10.439 big announcement Project Stargate, as Jackie mentioned, companies like open 0:34:10.480 --> 0:34:14.560 Ai and Oracle and soft Bank and Vidia investing five 0:34:14.719 --> 0:34:16.600 hundred billion dollars. 0:34:16.200 --> 0:34:17.480 In AI capability. 0:34:17.520 --> 0:34:19.960 Here in the United States, it's definitely a race and 0:34:20.040 --> 0:34:23.440 the primary competitor in that race is China. China has 0:34:23.480 --> 0:34:26.680 aspirations to compete globally on AI, we need to win the. 0:34:26.719 --> 0:34:28.040 Race here in the United States. 0:34:28.200 --> 0:34:31.000 So what the technology industry is really looking for is 0:34:31.040 --> 0:34:34.160 an environment that's conducive to investment in the US. You 0:34:34.239 --> 0:34:36.319 saw it with Project Stargate. You've seen a lot of 0:34:36.360 --> 0:34:39.239 other announcements. Apple announcing five hundred billion dollars as an 0:34:39.239 --> 0:34:42.120 investment in the US, IBM announcing one hundred and fifty 0:34:42.120 --> 0:34:42.760 billion dollars. 0:34:42.800 --> 0:34:43.440 The list goes on. 0:34:43.480 --> 0:34:46.520 It's up over two trillion dollars at this point. But 0:34:46.560 --> 0:34:48.600 there's certainty that's necessary. We got a little bit of 0:34:48.640 --> 0:34:51.680 that last week with the big beautiful bill passing and 0:34:51.760 --> 0:34:55.920 restoring the tax incentives for investment in manufacturing, accelerating the 0:34:55.920 --> 0:34:58.839 incentives for investing, particularly in manufacturing. 0:34:58.239 --> 0:34:59.600 And technology in the United States. 0:35:00.000 --> 0:35:02.319 The next thing we need is some trade certainty and 0:35:02.760 --> 0:35:05.319 a move away from tariffs's a trade strategy and into 0:35:05.320 --> 0:35:07.719 trade agreements so we can expand that investment in the 0:35:07.800 --> 0:35:08.719 United States as well. 0:35:08.800 --> 0:35:09.000 Well. 0:35:09.000 --> 0:35:12.479 Sam Way in here on the trade negotiations with China 0:35:12.520 --> 0:35:15.319 in particular, and whether there will be any wiggle room 0:35:15.560 --> 0:35:18.640 to be seeing what China ultimately wants is access to 0:35:18.680 --> 0:35:22.200 certain semiconductors. Will that be a bargaining chip that could 0:35:22.200 --> 0:35:23.359 be loosened in some way. 0:35:24.760 --> 0:35:27.080 So a year ago I was in Beijing and I 0:35:27.120 --> 0:35:30.520 heard from interlocutors, we will not come to the table. 0:35:30.560 --> 0:35:32.719 And this was before the tariff battle. This was just 0:35:33.000 --> 0:35:36.480 regular tensions. We will not really come to the table 0:35:36.520 --> 0:35:40.160 to work things out with US unless export controls are lifted. 0:35:40.440 --> 0:35:43.960 And a year ago that was an impossibility. But when 0:35:44.040 --> 0:35:46.879 the two sides met in London last month to try 0:35:46.920 --> 0:35:49.759 to get things back on track, we had the Secretary 0:35:49.800 --> 0:35:54.600 of Commerce, Howard Lutnik included in the negotiations alongside Treasury 0:35:54.640 --> 0:35:58.319 Secretary in USTR, which meant export controls are now on 0:35:58.360 --> 0:36:01.439 the table. The question is how far will they go. 0:36:02.200 --> 0:36:05.839 In April we saw in Video's H twenty chips put 0:36:05.880 --> 0:36:08.239 on the export control list. Those were designed to be 0:36:08.320 --> 0:36:12.239 compliant with China's market, But we don't know will they 0:36:12.320 --> 0:36:14.560 lift that, Will the Trump administration lift that? Are they 0:36:14.640 --> 0:36:16.960 going to go even further and unwind some of the 0:36:17.480 --> 0:36:23.640 buyer administration controls on advanced semiconductors equipment. We saw loosening 0:36:23.760 --> 0:36:27.880 on electronic design software just in the last week. 0:36:27.800 --> 0:36:30.240 Or so so there's a lot of room to work. 0:36:30.080 --> 0:36:33.080 With and the question is what specific tools will be 0:36:33.160 --> 0:36:37.840 acceptable to the Hawks in the Trump administration when China 0:36:37.920 --> 0:36:40.759 is eager to get sort of at this issue that 0:36:40.760 --> 0:36:42.920 has been front and center for them for a long time. 0:36:43.840 --> 0:36:45.560 I know this is a hard one for you, Jason, 0:36:45.920 --> 0:36:48.320 but to single out a few of your members AMD 0:36:48.440 --> 0:36:49.200 and VIDEO. 0:36:49.760 --> 0:36:51.840 They want access still to China. 0:36:52.520 --> 0:36:54.400 Do you think that's ever going to be something that 0:36:54.400 --> 0:36:58.520 they're managing to convince that they can do that safely. 0:36:58.800 --> 0:37:01.759 There is a way to balance national security interests that 0:37:01.920 --> 0:37:05.480 Sam made reference to with the economic interests of American companies. 0:37:05.760 --> 0:37:07.279 Ninety five percent of the people that live on the 0:37:07.320 --> 0:37:09.120 planet do not live in the United States, and if 0:37:09.120 --> 0:37:12.520 we deny American companies access to global markets, we're denying 0:37:12.520 --> 0:37:16.480 them the opportunity to really expand economically and succeed. There 0:37:16.600 --> 0:37:18.759 is a way, and the Trump administration has been moving 0:37:18.800 --> 0:37:22.040 in this direction to make sure that the Chinese Communist 0:37:22.120 --> 0:37:25.640 Party doesn't get access to the most sensitive technology for 0:37:25.760 --> 0:37:29.400 its military purposes. The Biden administration tried this with the 0:37:29.440 --> 0:37:31.640 AI diffusion rule that you mentioned. They did it in 0:37:31.680 --> 0:37:35.160 a very poor way. They restricted access to our allies 0:37:35.200 --> 0:37:38.200 around their world getting access to American AI technology and 0:37:38.239 --> 0:37:39.560 semiconductive technology. 0:37:39.800 --> 0:37:43.680 That rule has been scrapped. We're moving forward and ensuring. 0:37:43.280 --> 0:37:48.560 That we make a legitimate national security approach, not harbor 0:37:49.239 --> 0:37:53.160 that economic interests as well. In other words, we can't 0:37:53.200 --> 0:37:56.440 in the name of national security, deny American companies access 0:37:56.480 --> 0:37:57.680 to the rest of the world. 0:37:57.840 --> 0:37:59.080 We can balance it correctly. 0:37:59.120 --> 0:38:02.400 We can make sure that the markets are open and accessible, 0:38:02.640 --> 0:38:04.880 but make sure that the national security interests are protected 0:38:04.920 --> 0:38:05.279 as well. 0:38:05.680 --> 0:38:07.960 Sam Many would say that some of the moves on 0:38:08.000 --> 0:38:11.520 limiting copper, for example, into the United States is about 0:38:11.600 --> 0:38:13.839 national security in the longer term to make it more 0:38:13.880 --> 0:38:17.600 self sufficient, but that takes decades. Just tell us about 0:38:17.600 --> 0:38:20.200 some of the certainty that's necessary. I think of rare 0:38:20.239 --> 0:38:24.279 earth elements, rare earth metals so dependent on China. That's 0:38:24.280 --> 0:38:27.160 a big bargaining chip of China versus the US. But 0:38:27.280 --> 0:38:30.240 thus father hasn't been this sort of support coming necessary 0:38:30.320 --> 0:38:32.560 from the administration to allow us. 0:38:32.400 --> 0:38:34.800 To mine it more in the United States. That certainty 0:38:34.880 --> 0:38:35.399 isn't there. 0:38:36.480 --> 0:38:38.440 The thing about rare earth that everyone will say is 0:38:38.440 --> 0:38:40.800 they're not that rare, but they're really dirty, and it 0:38:40.840 --> 0:38:43.320 will take a long time and do we actually want. 0:38:43.120 --> 0:38:44.200 Those industries here. 0:38:44.560 --> 0:38:47.160 But certainly I think there's been an emphasis on reducing 0:38:47.239 --> 0:38:50.480 bottlenecks because these are choke points that can be weaponized 0:38:50.480 --> 0:38:54.160 against the United States, and Beijing realized that they'd stumbled 0:38:54.239 --> 0:38:58.279 upon an incredibly important choke point. Looking at where the 0:38:58.320 --> 0:39:01.880 negotiations stand right now on Earth specifically, you know, when 0:39:01.920 --> 0:39:03.919 the two sides came back to the table they said 0:39:03.960 --> 0:39:06.920 we have a deal. I noticed two things from the 0:39:07.000 --> 0:39:10.520 Chinese side, specifically on rare earths. One, they agreed that 0:39:10.560 --> 0:39:15.319 they were going to loosen their controls and speed up approvals, 0:39:15.640 --> 0:39:18.320 but they're only going to be granting licenses for six 0:39:18.400 --> 0:39:21.359 months at a time, which means Beijing wants to keep 0:39:21.400 --> 0:39:24.760 this in their back pocket as leverage. And the second 0:39:24.880 --> 0:39:27.319 is we've heard that US companies in the process of 0:39:27.400 --> 0:39:31.719 applying for those approvals have been subject to very invasive 0:39:31.880 --> 0:39:35.600 questions from the Chinese government for sensitive business information. So 0:39:35.640 --> 0:39:38.200 we're not out of the woodwork yet, and I think 0:39:38.200 --> 0:39:40.680 it's yet to be seen what the Chinese government is 0:39:40.719 --> 0:39:42.120 willing to give on rare earths. 0:39:43.400 --> 0:39:46.359 Very briefly, Jason, the other key bottle necks talent, have we. 0:39:46.320 --> 0:39:46.759 Got a hair. 0:39:47.040 --> 0:39:50.160 Yeah, So China is racing to deploy that AI talent. 0:39:50.200 --> 0:39:53.000 The Trump administration just last week announced a new AI 0:39:53.200 --> 0:39:55.959 education initiative that ITI and a number of our member 0:39:56.000 --> 0:39:59.239 companies signed onto to develop the homegrown talent that we need. 0:39:59.440 --> 0:40:01.240 We also need to attract the best and the brightest 0:40:01.239 --> 0:40:04.840 from around the world. Most technology companies that we're familiar 0:40:04.840 --> 0:40:07.480 with were started by first or second generation immigrants, and 0:40:07.520 --> 0:40:10.200 we need that next generation of AI talent to happen here, 0:40:10.239 --> 0:40:12.000 to start their companies here, to stay here. 0:40:12.120 --> 0:40:13.759 So we need to attract them as students. 0:40:13.520 --> 0:40:15.640 And we also need to educate the workforce to make 0:40:15.680 --> 0:40:18.319 sure that we have the best AI talent here in 0:40:18.320 --> 0:40:21.160 the United States doing that invention, doing that creating and 0:40:21.239 --> 0:40:23.600 job descriptions that we want to see out there. 0:40:23.719 --> 0:40:26.880 What a great conversation Jason Oxman from the Information Technology 0:40:26.880 --> 0:40:29.600 Industry Council right here in New York, along with Sam 0:40:29.640 --> 0:40:32.319 Sachs from New America. It's been wonderful having you both. 0:40:32.360 --> 0:40:32.719 Thank you. 0:40:33.920 --> 0:40:36.200 META it is investing three and a half billion dollars 0:40:36.280 --> 0:40:39.760 in eslor Luxotka, purchasing a minority state in the company 0:40:39.960 --> 0:40:43.920 as it boots his aiglasses ambitions. So all according to sources, 0:40:43.920 --> 0:40:45.960 some more blue mos Kurt Wagner joins us you help 0:40:46.000 --> 0:40:48.120 break this story. Basically, they are the maker of ray 0:40:48.160 --> 0:40:51.520 bands and Oakley's the power the Meta AI story. 0:40:52.880 --> 0:40:53.319 That's right. 0:40:53.320 --> 0:40:55.680 This is a company that Meta has been partnering with 0:40:55.719 --> 0:40:58.160 on the product side for several years now. You mentioned 0:40:58.160 --> 0:41:01.080 the ray ban, Meta glasses, the Oakley glasses that they 0:41:01.160 --> 0:41:03.759 just announced last month, So this is a company has 0:41:03.800 --> 0:41:06.799 had a long relationship with and actually this investment has 0:41:06.840 --> 0:41:08.480 been expected, but now it's final. 0:41:08.760 --> 0:41:10.520 And what I think it does is just it ties 0:41:10.560 --> 0:41:11.760 these two companies. 0:41:11.400 --> 0:41:14.520 Together in a more formal way, but it also signals 0:41:14.560 --> 0:41:17.320 how much Meta continues to believe in this idea. 0:41:17.040 --> 0:41:18.680 Of AI glasses as the future. 0:41:18.760 --> 0:41:18.920 Right. 0:41:19.000 --> 0:41:21.640 I mean this is not a small investment. This is 0:41:21.680 --> 0:41:23.919 a sign that they are not only building these things, 0:41:23.960 --> 0:41:25.719 but that they're kind of putting their money where their 0:41:25.760 --> 0:41:27.919 mouth is here and this is the future for them. 0:41:28.080 --> 0:41:29.919 Yeah, they want to profit from the upside as well 0:41:29.960 --> 0:41:33.360 as they deepen that tie cut. Just pivoting to another 0:41:33.400 --> 0:41:36.560 AI story, and one is XAI and just looking at 0:41:36.800 --> 0:41:39.640 x I mean, how do you react to Linda Yacarino 0:41:39.840 --> 0:41:41.200 saying she no longer going to be CEO. 0:41:42.680 --> 0:41:45.799 Yeah, well I was surprised, not because we haven't been 0:41:45.800 --> 0:41:48.760 talking about this for a while, right, I think everyone's 0:41:48.800 --> 0:41:50.879 sort of been wondering how long she would last since 0:41:50.880 --> 0:41:52.880 she took the job two years ago. But I was 0:41:52.920 --> 0:41:55.120 just at can Lyons in the south of France a 0:41:55.120 --> 0:41:57.200 few weeks ago, and she was there. She was representing X, 0:41:57.239 --> 0:41:59.160 she was on stage, she was in meetings with partners 0:41:59.160 --> 0:42:01.440 and advertisers, and so I kind of thought that she 0:42:01.480 --> 0:42:03.960 would be around a little a little longer because of that. 0:42:04.280 --> 0:42:06.480 But look, this is a job that I've said from 0:42:06.520 --> 0:42:09.680 the beginning, is incredibly hard, especially when Elon Musk is 0:42:09.680 --> 0:42:12.200 the owner of this company, because he does not do 0:42:12.360 --> 0:42:15.960 things that make selling advertising on X an easy proposition, right, 0:42:16.000 --> 0:42:18.240 So her whole job is to make X seems safe, 0:42:18.520 --> 0:42:21.440 brand friendly, And when you have you know, Musk out 0:42:21.440 --> 0:42:23.879 there doing the thing that he tends to do, it. 0:42:23.840 --> 0:42:26.239 Is a it is a tough, a tough gig. And 0:42:26.280 --> 0:42:26.839 so I'm not. 0:42:26.760 --> 0:42:30.280 Surprised that, you know, two years in, she's decided. 0:42:29.920 --> 0:42:31.560 To move on and thirty seconds. 0:42:31.719 --> 0:42:35.000 It's also hard when Grock the chatbod is doing the 0:42:35.040 --> 0:42:38.480 things it's been doing, anti semitic commentary was what was 0:42:38.520 --> 0:42:40.600 reported yesterday, but they've got a big update tonight. 0:42:41.760 --> 0:42:42.160 They do. 0:42:42.200 --> 0:42:45.200 There's a live stream tonight about Grock four. You mentioned 0:42:45.480 --> 0:42:49.080 that the timing of yesterday when Grok was viewing this 0:42:49.239 --> 0:42:52.600 really vitriolic stuff of anti Semitism things like that that 0:42:52.880 --> 0:42:55.319 a lot of people took issue with, and so it'll 0:42:55.360 --> 0:42:57.120 be interesting to see how they address that if they 0:42:57.120 --> 0:42:59.839 address that tonight on the live stream. But it works 0:42:59.840 --> 0:43:01.680 back been that late tonight Pacific time. 0:43:02.040 --> 0:43:05.160 Forever busy, bloombos Kote Wagner. Thanks for bringing us the story. 0:43:05.560 --> 0:43:07.560 Now that does it for this edition of Bloomberg Tech. 0:43:07.640 --> 0:43:08.640 Do not forget to check. 0:43:08.480 --> 0:43:10.839 Out our podcast finding on the terminal as well as 0:43:10.840 --> 0:43:15.040 online on Apple, Spotify, and iHeart this is Bloomberg Tech.