Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and ever though in San Francisco.
Speaker 2: This is Bloomberg Tech coming up in video.
Speaker 3: Becomes the first company in history to have reached a
Speaker 3: four trillion dollar market cap, plus a new record for
Speaker 3: a private giant two SpaceX is, and discussions to sell
Speaker 3: shares that would value the company at four hundred billion dollars.
Speaker 3: And Apple thinks it's too big to tariff now. That's
Speaker 3: according to White House Trade counselor Petere Navarro. This is
Speaker 3: wider trade questions remain, But first we check in on
Speaker 3: these markets, which, as she managed to shrug off a
Speaker 3: lot of that trade anxiety. On the day in the
Speaker 3: NASTAC up to ten percent. We were trading in excess
Speaker 3: of five ten percent higher, led by key names such
Speaker 3: as in video. Let's just dig into what's happenings. We
Speaker 3: await big bond auctions in the United States. We try
Speaker 3: to digest what's happening in terms of trade. I am
Speaker 3: seeing a four trillion dollar market capitalization for the first
Speaker 3: time in history. We touch it, we pull back down
Speaker 3: a little bit, but in video is very close to
Speaker 3: it as we stand out. And this despite the world's
Speaker 3: biggest market cap erosion back in February after the deep
Speaker 3: Seak anxiety, they pull back and they're up twenty percent
Speaker 3: so far in twenty twenty five.
Speaker 2: Move on, though, and have.
Speaker 3: A look what's happening with Apple, because from a points perspective,
Speaker 3: it is the big drag lower on the major benchmarks
Speaker 3: today Apple Office, you'll see by more than a percentage point.
Speaker 3: This is we hear from Peter Navarro, of course, who
Speaker 3: whispers closely in trumps hera around trade that he thinks
Speaker 3: that Apple sees itself as too big to tariff, but
Speaker 3: they are moving.
Speaker 2: Fast to change this.
Speaker 3: Nevertheless, the anxiety remains around Apple and the exposure to
Speaker 3: certain trade tariffs still to be decided and announce Bloomberg's
Speaker 3: balance of power. Host Kayleie Lyons has more. We heard
Speaker 3: from Peter Navarro, who is on another network earlier today.
Speaker 3: But bring us up to speed, which is where we
Speaker 3: stand in terms of the new deadline of August first.
Speaker 4: Well, President Trump suggests that deadline actually isn't new, Caroline.
Speaker 4: He said yesterday that it's always been August first, though
Speaker 4: we thought today July ninth initially was the trade deadline
Speaker 4: that at least countries were facing in order to make
Speaker 4: trade deals with the United States. Obviously that has been
Speaker 4: punted back a few weeks. The President, in addition to
Speaker 4: tariffs on countries, is still teasing further sectoral tariffs that
Speaker 4: could affect companies like Apple when it comes to things
Speaker 4: like semiconductors, for example. And then there's copper, which he
Speaker 4: surprisingly announced yesterday. Not necessarily, the tariffs itself were surprising
Speaker 4: because a Section two thirty two investigation had been opened
Speaker 4: into copper, but the timing and the scale of the
Speaker 4: tariff were what caught us a bit aback. Fifty percent
Speaker 4: in the Commerce Secretary Howard Lutnix says, that could be
Speaker 4: effective at the end of July or also on August first,
Speaker 4: and you think about a commodity like copper, what that
Speaker 4: could do to supply and demand dynamics, Knowing right now
Speaker 4: the US doesn't have adequate supply to meet the growing
Speaker 4: demand for copper because of the role it plays in
Speaker 4: things like, for example, powering artificial intelligence, or rather the
Speaker 4: data centers that do that work in the facilities that
Speaker 4: generate the power for those data centers, the actual infrastructure
Speaker 4: to get that power to data centers, the construction of
Speaker 4: data centers that require it for things like cooling systems
Speaker 4: or their circuit boards. All of that requires copper, and
Speaker 4: copper could either be harder to come by or potentially
Speaker 4: more expensive when these tariffs go into effect.
Speaker 5: So that obviously is.
Speaker 4: One area of the market that has been roiled by
Speaker 4: tariff news in recent days, and we're waiting potentially for
Speaker 4: more tariff news. Caroline. The President posted on true Social
Speaker 4: overnight that this morning he would be announcing seven countries
Speaker 4: in regard to trade.
Speaker 2: Assumably we assume what would.
Speaker 4: Be letters like we saw earlier this week when fourteen
Speaker 4: countries had tariff rates essentially set for them that will
Speaker 4: take effect on August first. No news yet on this front,
Speaker 4: but he did say seven will come this morning, with
Speaker 4: additional letters to come later this afternoon, so we'll be
Speaker 4: on watch for those essentially all day here in Washington.
Speaker 3: The weaving of politics and technology expertly done, Thank you,
Speaker 3: Kayley Lines. Now, let's just admit that talk of tariffs
Speaker 3: are probably going to be consuming much of.
Speaker 2: The conversation over the annual Allen and co retreat in
Speaker 2: Sun Valley.
Speaker 3: But so two, there's a competition in AI when companies
Speaker 3: like Meta actively recruiting top talent from across the industry,
Speaker 3: including from Open Ai.
Speaker 6: Now.
Speaker 3: Despite that, talent war CEO Sam Altman says he remains
Speaker 3: confident in this team.
Speaker 7: I think we have an incredible I mean, obviously an
Speaker 7: incredibly talented team, and I think they really love what
Speaker 7: they're doing.
Speaker 5: Obviously some people have got a different places.
Speaker 8: There's a lot of excitement I guess we could say
Speaker 8: in the industry, but.
Speaker 3: No, I think we still find joining us now is
Speaker 3: our very own ed Ludlow in Sunny Sun Valley, Idaho.
Speaker 3: So thus far, no awkward meeting between Altman and zuck
Speaker 3: has been witnessed, right.
Speaker 9: No, people I've spoken to haven't witnessed one, and we
Speaker 9: haven't actually seen Zuckerberg arrive yet. But that was what
Speaker 9: Sam Altman said because he was asked. You know, his
Speaker 9: expectation is that he will see Mark's Uckerberg and that
Speaker 9: he's looking forward to it.
Speaker 6: You know.
Speaker 9: He kind of elaborated on what he discussed on the
Speaker 9: podcast with his brother a few weeks back, which is
Speaker 9: he feels the strategy on talent is to be mission oriented,
Speaker 9: to have the great research lab and a great company.
Speaker 9: It was kind of a reference to that quote that
Speaker 9: he had about being mission driven missionaries not mercenaries. But
Speaker 9: again we're waiting for it to happen. I do know
Speaker 9: that it's a big point of focus this year here
Speaker 9: at Anal.
Speaker 2: And coch Well.
Speaker 3: A big talent question has just arisen as well, a
Speaker 3: movement of Linday Acarino out of x she's posting on
Speaker 3: the social media platform saying she's stepping down as the CEO.
Speaker 2: ED what do you make of it?
Speaker 9: Yeah, I mean in the post she's talking about the
Speaker 9: turnaround job that she's done without sort of giving any
Speaker 9: specific metrics that lowered down. There's a reference to Xai, right,
Speaker 9: and it's really important to remember that post March, when
Speaker 9: x and Xai essentially merged under Xai Holdings, that the
Speaker 9: structure of that company changed.
Speaker 5: There's a lot of.
Speaker 9: Emphasis on how how x the social platform provides a
Speaker 9: mote for Xai, the developer of large language models and
Speaker 9: generative AI tools. But Elon Musk, this is the latest
Speaker 9: person in his orbit to step down or leave. You'll
Speaker 9: remember reporting about Omi Dafshar leaving Tesla, other senior executives
Speaker 9: in other places. So very interesting to see what happens
Speaker 9: big picture with x and where it fits in alongside
Speaker 9: XAI rather than just being an ad base social platform.
Speaker 3: And let's talk about orbits and Elon Musk a bit more,
Speaker 3: because you have a great scoop out on SpaceX working
Speaker 3: with colleagues talking about how it's going to be perhaps
Speaker 3: a record setting valuation of a private company.
Speaker 9: So SpaceX does tend to do a secondary or tender
Speaker 9: every six months, and they use this mechanism where it's
Speaker 9: concurrent with a very small primary in other words, they
Speaker 9: sell very small number of new shares to set the
Speaker 9: price and the valuation. And what we're hearing from sources
Speaker 9: is that that valuation is now above four hundred billion
Speaker 9: dollars and it's astonishing, right, like it's a milestone, most
Speaker 9: valuable private startup. But you know it's also in the
Speaker 9: backdrop of Elon Musk and the President of the United States.
Speaker 9: SpaceX relies heavily on contracts from the US government defense apparatus,
Speaker 9: but it also dominates commercial payload to orbit, and that
Speaker 9: valuation continues to climb with a really heavy emphasis on starlink.
Speaker 9: A big part of it as well, of course, is
Speaker 9: about employee liquidity and talent, because there are people that
Speaker 9: worked at SpaceX for a really long time and stock
Speaker 9: is a big part of comp Loads of people watching
Speaker 9: this show will know that. But it continues to go up,
Speaker 9: and that's super interesting.
Speaker 3: It is still validation in Elon Inc. It feels at
Speaker 3: this moment. But what everyone's going to be talking about
Speaker 3: where you sit is also a bit of M and
Speaker 3: A and a healthy amount potentially going on in the
Speaker 3: media landscape.
Speaker 2: Talk to us about Ane, Yeah.
Speaker 9: I mean, this is the history of all and Cohen,
Speaker 9: Sun Valley, right, TMT and M and A. And the
Speaker 9: news that we've had in the last twenty four hours
Speaker 9: is that A and E, which is the joint venture
Speaker 9: between Disney and Hurst, is available for sale. That's kind
Speaker 9: of like the cable channels, including History Channel, shout out
Speaker 9: History channels to.
Speaker 6: Those that watch it.
Speaker 9: Bob Iger walked past and we asked him, can we
Speaker 9: talk a little bit about A and E? And he said,
Speaker 9: I'm not going to be talking about that right now,
Speaker 9: but it is some property up for grabs. And then
Speaker 9: you have Warner Brothers Discovery that's on a path to
Speaker 9: split between a pure place streaming business and a pure
Speaker 9: place studio business. And we did catch up with David
Speaker 9: Zaslov who said, like, look, we're on track. There are
Speaker 9: no approvals needed. We aren't ready to talk about the
Speaker 9: debt side of this, but all of that indicates that
Speaker 9: in this space some stuff might happen, and I think
Speaker 9: that's what people are going to be talking about a
Speaker 9: lot in in amongst all of the seminars and coffee
Speaker 9: stops in the next few days, a.
Speaker 3: History lesson on the History Channel and the history of
Speaker 3: Allen co Ed Lulow out in Idaho.
Speaker 2: Love catching ups soon.
Speaker 3: Meanwhile, let's dive into all of this with Scott Lanner
Speaker 3: from Horizon Investments, who, of course is taking a temperature
Speaker 3: gauge of the markets right now. And Scott, we're looking
Speaker 3: at maybe a little bit of em and a coming
Speaker 3: to bear. We're seeing phenomenal valuations on the public market
Speaker 3: with a new four trillion dollar company if we can
Speaker 3: retain it back for Nvidia and that four hundred billion
Speaker 3: dollar private valuation for SpaceX.
Speaker 2: Can we sustain these sorts of valuations?
Speaker 10: Scott, Hey, Caroline, you know, like long as a short yes,
Speaker 10: I think we can. And the reason why we probably
Speaker 10: can is because these companies are growing into the valuations
Speaker 10: that the market is placing upon them. This is not like,
Speaker 10: you know, kind of not not like the nineties where
Speaker 10: where those companies really sort of got ahead of themselves
Speaker 10: there weren't making enough money to justify the valuations ultimately.
Speaker 10: But these you know, this, this you know, this generation's Internet,
Speaker 10: this generations tech companies you know have have ros in
Speaker 10: the thirties and and you know that is a very
Speaker 10: sustainable kind of valuation metric that we can that we
Speaker 10: can use to say, yeah, this is this is pretty
Speaker 10: sustainable right now like these this is this is we're
Speaker 10: not multatory anywhere close to it.
Speaker 3: I mean, return on equity looking still healthy and.
Speaker 2: Not too eye watering, Scott.
Speaker 3: Will that be vindicated in the earning season that we're
Speaker 3: about to get. Will Microsoft for some of these particular
Speaker 3: the hyperscalers be able to co to the spending that
Speaker 3: drives in video yet further higher?
Speaker 10: Yeah, that is obviously the trillion dollar question, Joe. Do
Speaker 10: we get continued growth and continued upward pressure on those
Speaker 10: ro and kind of kind of metrics you get the
Speaker 10: ro expansion by by having additional profitability, additional market, additional
Speaker 10: margin expansion, and just and just overall is just better
Speaker 10: accution on the business side. And and if these companies
Speaker 10: can continue to do that, then there's there's no reason
Speaker 10: why we can't be substantially higher in a year from
Speaker 10: now in many of these companies than we are right now.
Speaker 10: Our expectation is that that's going to continue. There's no
Speaker 10: reason why it really shouldn't. At this point. We are
Speaker 10: still early stages of the AI revolution, and that is
Speaker 10: our expectation currently.
Speaker 3: I mean, I guess the extraordinary matter of all of
Speaker 3: this is, of course we saw the biggest sell off
Speaker 3: ever in a market capitalization of Nvideo just in February
Speaker 3: because of the worry of deep Seed. But we also
Speaker 3: have the tariff anxiety that just doesn't seem to impede
Speaker 3: its valuation. Is that something that could knock off valuations
Speaker 3: or do you think we're getting numbed to tariffs?
Speaker 6: We're definitely getting numb.
Speaker 10: I mean, look that the market is not trading like
Speaker 10: it used to in April on based on the tariff headlines.
Speaker 10: You see, there's just sort of a diminished return towards
Speaker 10: towards the shock the mark is able to absorb with
Speaker 10: these because now we sort of get we think we
Speaker 10: understand what what the playbook looks like. Playbook looks like,
Speaker 10: you know, you know, talk tough and then eventually find
Speaker 10: some way to get a deal as acceptable to everybody,
Speaker 10: and that if that that continues to pace, then that
Speaker 10: there's no reason why, you know, why the market can't
Speaker 10: sort of sustain these types of levels. But you know
Speaker 10: that that you know that getting getting comfortable with the
Speaker 10: way that that the terroifts are going to end up
Speaker 10: going and figuring out the market frankly is starting to
Speaker 10: figure out that there's not really an alternative still to
Speaker 10: to to Nvidian and some of those ships. Despite this,
Speaker 10: there's does wite some of the deep seat stuff and
Speaker 10: that's why we've recaptured, you know, these all time highs
Speaker 10: and valuations.
Speaker 3: It does seem to be a story of AI winners
Speaker 3: and then the laggards, and we're talking tough. Has really
Speaker 3: got hard today is on Apple once again, Peter Navarro
Speaker 3: calling it out, saying they think they're too big to tariff.
Speaker 3: Are we just going to see more money pile into
Speaker 3: the infrastructure, air or what point are we going to
Speaker 3: start to see companies winning out with the application of AI,
Speaker 3: which thus far Apple doesn't seem to.
Speaker 2: Be on top of.
Speaker 10: Yeah, we think that's probably a twenty twenty, like late
Speaker 10: twenty twenty by early twenty sixth story. You know, as
Speaker 10: we move from the you know, the makers of the
Speaker 10: stuff to the users of the stuff and that and
Speaker 10: that's probably gonna be the most important and that's being
Speaker 10: called to make as we as we come into next year,
Speaker 10: is like figuring out which companies and which sectors are
Speaker 10: actually able to use the AI technology which is amazing
Speaker 10: to increase profit margins, to increase productivity and and that
Speaker 10: you know, that's we're spending quite a lot of time
Speaker 10: on that on that here at Horizon, and it's it's
Speaker 10: something that we're actually pretty excited about. But you know,
Speaker 10: the the focus on the intense focus we've had on
Speaker 10: the infrastructure side try not can go away. It's you know,
Speaker 10: it's not it can be diminished, but it's kind of
Speaker 10: broughten out towards towards more more towards those users and
Speaker 10: in some of the ultimate winners in the space, which
Speaker 10: which are always the users of the technology rather than
Speaker 10: the makers of the technology.
Speaker 3: I mean, I know you say it's still early days,
Speaker 3: but can you give us an inkling of where you're
Speaker 3: getting most excited about.
Speaker 2: Is it a healthcare space, is it elsewhere?
Speaker 10: Healthcare is definitely one of the top of the mind
Speaker 10: in terms of the people that can use this to
Speaker 10: just really speed up the drug development is like an
Speaker 10: obvious application for some of these things. I Mean, the
Speaker 10: exciting thing, Caroline, I think is we don't really know
Speaker 10: what that's what's around the corner. I'm not smart to
Speaker 10: figure out like what the next shoe drop is and
Speaker 10: like which which companies and sectors are you're really going
Speaker 10: to take, especially the agenic AI and into the ends
Speaker 10: of the next level. And so you know, we are
Speaker 10: spending a fair amount time kind of figure that stuff
Speaker 10: out right now, but I don't know what I don't know.
Speaker 6: And that's actually one of.
Speaker 10: Some of the most exciting parts about this is you know,
Speaker 10: really have to stay front footed and do and do
Speaker 10: the research and just listen to what you're what you're seeing.
Speaker 3: And Scott, therefore, do you take money out of prior
Speaker 3: winners to allocate to the future ones or are you
Speaker 3: taking out of just lagging industry groups that you just
Speaker 3: don't want to be allocated to.
Speaker 2: At the moment.
Speaker 10: I think it's more it's more, you know, you probably
Speaker 10: do take some out of the infrastructure plas you you
Speaker 10: take some out of the prior winners. You know, some
Speaker 10: have the videos of the world. And but but like
Speaker 10: as I said earlier, Carolyn, it's more of a broadening play.
Speaker 10: So you know, I think you actually increase the overall
Speaker 10: allocation towards AI in your portfolio. But and you're taking
Speaker 10: out some of you know, some of like in the
Speaker 10: the envitees of the world. You're also taking out of
Speaker 10: like industrials, you're taking out of you know, like utilities,
Speaker 10: and you're gonna take it out of some of the
Speaker 10: more borings like staples types of things. You know, you
Speaker 10: probably just want to allocate out of those types of
Speaker 10: sectors and just overall increase your breadth you AI in
Speaker 10: your portfolio.
Speaker 3: Scott Lander of Rising Investments, Chief investment Officer, thanks for
Speaker 3: pushing us forward.
Speaker 2: We appreciate it. Coming out, Samsung unveils a slew of
Speaker 2: new foldable phones. Were on that.
Speaker 3: Next, this is Reuberg Tech. It's time now for talking
Speaker 3: tech and first up. Waimo's first self driving taxis have
Speaker 3: arrived in New York City, but Ford Autonomous Operations remain
Speaker 3: pending regulatory approval.
Speaker 6: Now.
Speaker 3: In the meantime, the company is collecting data across the
Speaker 3: city the safety drivers behind the wheel as it awaits
Speaker 3: to begin self driving tests.
Speaker 2: Plus, a California.
Speaker 3: Lawmaker makes another push to regulate AI in the state.
Speaker 3: Senator Scott Wiener has introduced a bill that will require
Speaker 3: companies developing certain AI models to publicly release safety and
Speaker 3: security protocols. The bill is expected to go before a
Speaker 3: California Assembly committee later this month. And Samsung unveiled it
Speaker 3: is the latest smartphones and wearable devices and its annual
Speaker 3: Unpacked event is announced three new foldable devices, each thinner
Speaker 3: lighter than previous iterations. The company also revealed a new
Speaker 3: line of upgrade A smart watches.
Speaker 2: They use Google's Gemina AI.
Speaker 3: Now for more on Samsung and plenty elsewhere in consumer tech,
Speaker 3: mallu Meg's Mark gum And joins us, you haven't had
Speaker 3: your hands on.
Speaker 2: These things, they look pretty good. What do you make
Speaker 2: of the announcements from Unpacked?
Speaker 11: I think these are hugely significant announcements.
Speaker 12: What Samsung is trying to do Year is take buldabule's mainstream.
Speaker 11: So two main levers they've pulled here.
Speaker 12: One they've widened the display so they've made it less narrow.
Speaker 12: This is an older Samsung foldable right here, and you
Speaker 12: can see.
Speaker 11: How narrow it is.
Speaker 12: And if you're used to working on an iPhone or
Speaker 12: a regular Samsung phone, the narrow form factor makes it
Speaker 12: quite difficult to you. So they've expanded it so now
Speaker 12: in the closed state. The new foldable fold this is
Speaker 12: the two thousand dollars model, feels like a normal candy
Speaker 12: bar phone that you can then open up to have
Speaker 12: even more screen real estate. The other thing they've done
Speaker 12: is they've released a sub thousand dollars foldable. This is
Speaker 12: a new version of the Flip that's their vertical phone,
Speaker 12: and that rice point makes it a lot more compelling
Speaker 12: and is taking it.
Speaker 11: Out of the early adopter price range.
Speaker 12: And it's interesting because foldables have been popular amongst the
Speaker 12: early adopter crowd, some of the tech year crowd, more
Speaker 12: of the productivity focused crowd, but now Samsung is trying
Speaker 12: to take it mainstream. And really those were the two
Speaker 12: levers they needed to pull in order to accomplish that,
Speaker 12: So we'll see what happens. Next year, Apple will announce
Speaker 12: their foldable, which certainly is going to bring a much
Speaker 12: bigger spotlight to the category, not only for its own
Speaker 12: product that they're unveiling, but for everyone else who already
Speaker 12: has foldables on the market.
Speaker 3: And mark just spotlight app a little bit more for
Speaker 3: us because you brought us that news yesterday that a
Speaker 3: changing of the guards COO is now departing. Perhaps not unexpectedly,
Speaker 3: it's a blockbuster move.
Speaker 12: As one former Apple executive told me, the band is dissolving.
Speaker 12: Right at some point in the next few years, it's
Speaker 12: going to be Tim Cook left standing with a whole
Speaker 12: new executive team around him. These are serious organizational changes
Speaker 12: happening at Apple. There are more to come, obviously. Jeff
Speaker 12: Williams was the long time number two at Apple to Cook,
Speaker 12: but really primary decision maker when it came to product development,
Speaker 12: which products Apple should launch, what it shouldn't launch. Really
Speaker 12: deep in the weeds on expansion for manufacturing into new areas,
Speaker 12: obviously dealing with tariffs, obviously dealing with their AI struggles.
Speaker 11: There's really no sugarcoating it.
Speaker 12: This is one of the most significant departures in Apple's history.
Speaker 3: Hey ed watches how What's interesting though, is Sabi Khan,
Speaker 3: who takes the reins, has been there for three decades
Speaker 3: and has been managing supply chain. But who do we
Speaker 3: to now mark the new guard that might even one
Speaker 3: day replace him?
Speaker 2: Cook himself well.
Speaker 11: On Selby Kahan.
Speaker 12: He has been there three decades, is only a few
Speaker 12: years younger than Jeff Williams. So you're going to see
Speaker 12: another COO transition in a few years from now. Right,
Speaker 12: You're going to see a lot of movement on the
Speaker 12: Apple executive team over the next few years. You've seen
Speaker 12: a lot over the past few years. We've been talking
Speaker 12: about this several times. I think we've had conversations about this.
Speaker 12: I've written several articles on this. Terms of the next CEO,
Speaker 12: look no further than John turnas the senior VP of
Speaker 12: Hardware Engineering at Apple.
Speaker 2: We keep all eyes on him. Mark German always ahead
Speaker 2: of the curve. We appreciate it.
Speaker 3: A Rivian back startup that's developing small e these is
Speaker 3: getting valued at a billion dollars in new investment from
Speaker 3: Green Oak's capital, and the company called Also Inc. Was
Speaker 3: spun out of Rivian earlier this year also well, it
Speaker 3: hasn't revealed specifics, but said it's tech platform will be
Speaker 3: applicable to e Bike's microcrs and neighborhood evs. Meanwhile, French
Speaker 3: AI start up Mistral is in talks to raise as
Speaker 3: much as one billion dollars in equity from several investors,
Speaker 3: including Abidabi Fund, mgx Sort, according to sources. For more,
Speaker 3: we go out to Blue Meg's Mark Bergen, who helped
Speaker 3: break this story and just focusing on Mistrale here. They've
Speaker 3: already raised about a billion before in equity, but they're
Speaker 3: also looking to the debt markets as well.
Speaker 5: That's right.
Speaker 7: I mean it's a move that we've seen Elon do
Speaker 7: with Xai. I mean, these are incredibly compute, computational intensive businesses,
Speaker 7: especially if you're trying to build language models and the
Speaker 7: kind of keep up with the frontier of Open Ai
Speaker 7: and Google. Miestrel has I think tapped the brakes a
Speaker 7: little bit on that being a direct competitor to open Ai,
Speaker 7: but they still want to be in this sort of
Speaker 7: generative AI model game that's very expensive, both as we've
Speaker 7: talked about a lot on the show, for hiring engineers,
Speaker 7: and then it's very expensive for these these big data
Speaker 7: center projects that they announced earlier this year. So that's
Speaker 7: why we believe they're actually I'm not raising this equity round,
Speaker 7: but also seeming the race probably almost half as much
Speaker 7: in debt.
Speaker 3: Wow, and go back to those data center announcements because
Speaker 3: Abidabi's involved in that too, just tell us about how
Speaker 3: much this is political in many ways.
Speaker 6: I think.
Speaker 7: So this is partially We've seen a bilateral agreement coming
Speaker 7: out a few months back to the UAE in France
Speaker 7: talking about building the biggest data centers in Europe.
Speaker 5: MGX was part of that.
Speaker 7: There was a commitment of somewhere between thirty to fifty
Speaker 7: billion euros in funding for data centers across France. MGX
Speaker 7: has basically taken a portfolio strategy.
Speaker 5: If they go through with this deal.
Speaker 7: We've also reported that they're in talks to invest with Inthropic,
Speaker 7: They've invested in open Ai, they invested in XAI. They
Speaker 7: are getting behind sort of every major player in this
Speaker 7: AI race. I believe they're probably gonna do something similar
Speaker 7: with infrastructure. We do see something similar on the energy
Speaker 7: and on the chip side as well.
Speaker 3: It's interesting because we've had perhaps some pieces so surprisingly
Speaker 3: within the contracts that assign when you're giving money. As
Speaker 3: of course you can't be sharing information when you're invested
Speaker 3: in so many of these startups. But if you're looking
Speaker 3: at mistrial versus XAI or open AI, where are those
Speaker 3: niche Because they're not more broad anymore.
Speaker 7: Right, they're not more broad and they're not necessarily as
Speaker 7: commercially successful or building the sort of cutting edge models.
Speaker 7: I mean, their niche has been and their selling point
Speaker 7: is sort of we are an open source alternative. We
Speaker 7: are the sort of sovereign AI where the will come
Speaker 7: in and kind of build you these AI services that
Speaker 7: can live in a private cloud.
Speaker 5: They're targeting governments.
Speaker 7: They've started working on defense in France and Europe in
Speaker 7: a time when sovereign AI is certainly like a marketing
Speaker 7: term thrown around a lot, but it is something that's
Speaker 7: become much more politically critical where countries and companies in
Speaker 7: Europe are looking to rely on local tech as much
Speaker 7: as they can.
Speaker 2: Is Mestra like the pin up for Europe right now?
Speaker 7: I mean, right now they are they're certainly the highest.
Speaker 5: This would make them the most valuable. I think they're
Speaker 5: probably the most valuable.
Speaker 7: We don't an evaluation for Wave, which is a self
Speaker 7: driving company based here in the UK. I think there's
Speaker 7: been a little bit of wavering enthusiasm for Miestro. I
Speaker 7: don't think people have been asn't impressed with their models,
Speaker 7: but there's certainly a lot of energy and certainly a
Speaker 7: lot of investor money tied up with their success.
Speaker 3: M Meg's mart Bergen coming to us from London. We
Speaker 3: appreciate it.
Speaker 2: Welcome back to lu Meg Tech.
Speaker 3: Let's take a look at these markets that are very
Speaker 3: close to record highs. We have the NASAK one hundred
Speaker 3: currently powering up full tens of percent. We're shaking off
Speaker 3: some of that trade anxiety and we're seeing.
Speaker 2: Some of the key leaders of the pack drivers.
Speaker 3: From a points perspective, yes, Apple is lower, particularly worrying
Speaker 3: about TARIS to them as again today, but let's look
Speaker 3: at what is really on the points perspective driving us higher.
Speaker 2: In video.
Speaker 3: We have at one point hit four trillion dollars in
Speaker 3: market capitalization, never been seen before.
Speaker 2: We're up more than two percent, is a record high
Speaker 2: for the AI.
Speaker 3: Darling Amazon also helping contribute from more points perspective. Microsoft
Speaker 3: two that's got an upgrade, but Amazon doing well at
Speaker 3: one point three percent.
Speaker 2: NASA's Prime Day is in full swing.
Speaker 3: We are stretching now over four days this year, up
Speaker 3: from two in twenty twenty four. That it remains to
Speaker 3: be seen whether that will entice shoppers and sellers alike. This,
Speaker 3: of course in the context of rising tariffs and rising prices.
Speaker 2: Let's get more on the inside track. Jamal Ghani's with
Speaker 2: US vice president of Amazon Prime.
Speaker 3: And you're really already seeing Jamil Adobe Analytics saying that
Speaker 3: US retailers drove close to eight billion in online spending
Speaker 3: on July eighth, up almost ten percent, and single biggest
Speaker 3: e commerce day so far this year is sent have
Speaker 3: been good.
Speaker 8: Therefore, Yeah, we just started the event yesterday, so it's
Speaker 8: very early, but we're really pleased by the engagement that
Speaker 8: we're getting from our customers and our members. Not only
Speaker 8: is the event twice as long, so four days, as
Speaker 8: you mentioned, but we're also offering more than double the
Speaker 8: number of deals that are fifty percent off or more.
Speaker 8: That's striving engagement across the millions of deals we have
Speaker 8: in thirty five categories. So we're really pleased. But it's
Speaker 8: very early, of course.
Speaker 3: Why make it four days, and how is that affecting
Speaker 3: the pace of spending do you.
Speaker 8: Think, Well, we listen to our members and they told
Speaker 8: us they needed more time to shop the millions of.
Speaker 6: Deals that we offer across our entire store. This gives
Speaker 6: them that.
Speaker 8: We're also offering new AI tools to get a more personalized,
Speaker 8: more targeted experience that allows our members to shop both
Speaker 8: the needs that.
Speaker 6: Are on their list but also the wants. And you
Speaker 6: see that in the data already.
Speaker 8: The top categories that our members are engaging with are
Speaker 8: health and personal care, apparel, beauty, home, kitchen, and really
Speaker 8: it's stretching the entire entirety of the store and members
Speaker 8: need time to shop it, and so we've given them
Speaker 8: double that time needs and wants.
Speaker 2: That's an interesting way of putting it.
Speaker 3: We've seen a lot of spend galvanizing groceries, for example,
Speaker 3: in some of the competitors. Is that an error you're
Speaker 3: feeling you're having to make more inroads in when you
Speaker 3: show that you can discount in this particular.
Speaker 8: Time, you know, grocery and everyday essentials, which is the
Speaker 8: broader definition we use internally to describe those things that
Speaker 8: a busy household needs to keep running and you know,
Speaker 8: deal with all the things that come their way, and
Speaker 8: we're investing heavily. That's the fastest growing part of our store.
Speaker 8: And you know, some of the items that are really
Speaker 8: resonating with our members during prime day already are like
Speaker 8: down Platinum powerwash, Disphray, something that my household, your household
Speaker 8: likely has it under the cupboards. It's also Crest three
Speaker 8: D white strips, Amazon Basic Triple A batteries. It's these
Speaker 8: essentials that you need for modern life, but it's also
Speaker 8: the other end of the spectrum. Beauty is a really
Speaker 8: exciting part of our store. Medcube has a number of
Speaker 8: fantastic products on sale. One of the top products so
Speaker 8: far is their zero core pads.
Speaker 6: So you can see just even in.
Speaker 8: The data of what members are scooping up in terms
Speaker 8: of savings. It's stretching from you know, the things you
Speaker 8: need to do in order to keep life moving all
Speaker 8: the way to what you would consider more wants as well,
Speaker 8: things you might have had on your list for a while.
Speaker 3: Apparently white Teeth needed to keep life moving. Jimil talk
Speaker 3: to us about Jenai though, because you just mentioned how
Speaker 3: that's helping it become more personalized. How's Rufus the shopping
Speaker 3: assistant doing. How more broadly is alexaplus doing Because I
Speaker 3: think as Adobe again saying that we're going to see
Speaker 3: more than three thousand percent increase in the use of
Speaker 3: Jenai in this particular spending screen.
Speaker 6: Yeah, Caroline, you're absolutely right.
Speaker 8: We've been investing for years, from the very beginning of Amazon,
Speaker 8: at the beginning of Amazon Prime, which is celebrating its
Speaker 8: twentieth anniversary this year, in all forms of AI.
Speaker 6: This year, we're bringing Rufus.
Speaker 8: As you said, is Rufus is smarter about Prime day.
Speaker 8: Rufus is smarter about your interests and can respond to
Speaker 8: natural language queries and bring back those deals that match
Speaker 8: those interests.
Speaker 6: We also have a product called.
Speaker 8: Interest where you can go in and with a simple
Speaker 8: set of statements, you can say, I'd like to remodel
Speaker 8: my live room in mid century modern. Please show me
Speaker 8: deals that are less than one hundred dollars, and it
Speaker 8: will proactively make that into the recommendations you see.
Speaker 6: Throughout the store.
Speaker 8: We also have shopping guides for those items that are
Speaker 8: a bit more considered. You know, I'm in the I'm
Speaker 8: in the shopping mode for a laptop, for my eldest daughter,
Speaker 8: who's eight, I don't buy a laptop that often, and
Speaker 8: these AI power shopping guides have been invaluable. And then lastly,
Speaker 8: Alexa plus is rolling out. Millions of members have access
Speaker 8: now and they're using it to check, you know, the
Speaker 8: timing for Prime Day, but also to get recommendations on
Speaker 8: deals and to be alerted when something that they've looked
Speaker 8: at previously is now on sale.
Speaker 3: Okay, so you're in the market to how you're eight
Speaker 3: year old. But what's interesting is Amazon seems to be
Speaker 3: in the market to learn more young adults. Right That
Speaker 3: is such a push right now? Why is that the
Speaker 3: area you want to make in roads?
Speaker 8: Well, we recognize that, you know, Prime exists to deliver
Speaker 8: three things convenience, savings, and entertainment behind one simple membership,
Speaker 8: and we hold ourselves to the bar of delivering disproportionate value.
Speaker 8: Everybody today and likely always wants to make a dollar stretch,
Speaker 8: and for younger customers that's more true than maybe for
Speaker 8: most and so we're reinventing our young adult program. Prime
Speaker 8: for young adults is fifty percent off, but now on
Speaker 8: top of that, we also are offering an evergreen five
Speaker 8: percent discount that for Prime Day is ten percent, so
Speaker 8: our members cannot only avail the great deals across the
Speaker 8: entire store that we've been talking about, but also add
Speaker 8: to it ten percent in categories that they really care about,
Speaker 8: like beauty, apparel, electronics, and so we're really proud of
Speaker 8: that program that offering to that key customer segment.
Speaker 3: See how much they love the lebron adds to Jimmy
Speaker 3: ol Ghani. Great to has some time with you Amazon
Speaker 3: Prime Worldwide. Meanwhile, coming up, we'll dive into how China
Speaker 3: is building data centers throughout the country's deserts and a
Speaker 3: bit of fuel Beijing's AI ambitions. As blommeg Tech, China
Speaker 3: is betting big on AI. We know this, but in
Speaker 3: a new Bloomberg investigation, we have found Chinese companies driven
Speaker 3: to build data centers in some of the most remote
Speaker 3: regions of the country to fuel Beijing's AI ambitions and
Speaker 3: looking to buy one hundred and fifteen thousand in video
Speaker 3: chips to power them. Lumo's Jackie Devolos joins us now
Speaker 3: for more so. On the edge of the Gobi Desert
Speaker 3: in modest county called yu Wu, I think has massive
Speaker 3: AI ambitions what draws them there In particular, why that
Speaker 3: spot because.
Speaker 13: This is in the Shinjiang region and a lot of
Speaker 13: US know about that region because of the controversy around
Speaker 13: labor issues, religious persecution. But it's also one of the
Speaker 13: most energy rich places in China. It's rich in solar,
Speaker 13: it's rich in wind, and it also has abundant coal energy,
Speaker 13: which is needed to power this massive AI infrastructure undertaking Caroline.
Speaker 13: It is one of the largest that we've seen come
Speaker 13: out of China, and in many ways it's almost, you know,
Speaker 13: garnering the same kind of clout as the US is Stargate.
Speaker 2: This is a huge undertaking.
Speaker 13: Thirty six data centers are planned and seventy percent are
Speaker 13: expected to be housed within a single compound, seventy percent
Speaker 13: of that capacity. It is massive when you think about
Speaker 13: just how much AI compute power China needs to kind of.
Speaker 5: Get up to speed to the US.
Speaker 13: But of course, the big question coming out of this
Speaker 13: story is how will they obtain these Nvidia chips one
Speaker 13: hundred and fifteen thousand to really get that power off
Speaker 13: the ground.
Speaker 3: That's so poignant because we know that China has energy,
Speaker 3: but it doesn't have the scale needed to create their
Speaker 3: own semiconductors sophisticated as ones as far as we on
Speaker 3: done now in Nvidio did weigh in and have been
Speaker 3: saying that ultimately this isn't what they believe is currently occurring.
Speaker 3: They say, trying to cobble together a data center from
Speaker 3: smuggled previous generation products makes no business or engineering sense.
Speaker 3: So where's this one hundred and fifteen thousand Nvidia chips
Speaker 3: coming from?
Speaker 8: Jackie Well?
Speaker 13: Reporters that put together this story really combed through tender documents,
Speaker 13: investment approvals, and other reporting that really didn't explain this,
Speaker 13: not in those documents. And perhaps it's for a reason
Speaker 13: because these are banned chips. China is not supposed to
Speaker 13: have access to them. Since October of twenty twenty two,
Speaker 13: these chips have been banned, so it's not clear exactly
Speaker 13: how this would occur. But of course one avenue is
Speaker 13: through smuggling, and even US officials have said that such
Speaker 13: a smuggling out operation would be too complex, so it
Speaker 13: is ambitious, but it's not clear just what measures they
Speaker 13: would need to take. Obviously, the United States has been
Speaker 13: taking a closer look at other countries where such smuggling
Speaker 13: could help China, Thailand and Malaysia being two countries. But
Speaker 13: this is a major focus for the Trump administration, which
Speaker 13: has really started to ramp up those efforts to curtail
Speaker 13: China's ability to get access.
Speaker 3: To these steps Caroline sort of a replacement to the
Speaker 3: AI diffusion rule, Bloomberg's Jackie Devolo's fantastic roundhup.
Speaker 2: Thank you.
Speaker 3: Now, let's keep discussing how the US can compete with
Speaker 3: China's growing AI efforts.
Speaker 2: But please to Welcome to the show.
Speaker 3: Jason Oxman, President and CEO of the Information Technology Industry Council,
Speaker 3: alongside New America's senior fellow Sam Sachs. And Sam, I
Speaker 3: start with you, because you've been assessing analyzing Chinese tech
Speaker 3: policy for decades. In the moment, what do you make
Speaker 3: of their belief system that they could access in video
Speaker 3: chips like this?
Speaker 2: Would they?
Speaker 3: I mean, I know you're about to go out to
Speaker 3: China for a KEYAI conference, then.
Speaker 14: Headed to Shanghai for the World AI Conference at.
Speaker 11: The end of the month.
Speaker 14: And the reality is both China and the United States
Speaker 14: are focused on getting the infrastructure necessary to win the
Speaker 14: so called AI race, and whether it's actually a race
Speaker 14: is a separate question, but data, energy, computation, and human
Speaker 14: capital are all critical inputs to this, and massive investment
Speaker 14: in infrastructure is top of mind for leaders in both
Speaker 14: countries as they seek to do it.
Speaker 6: Now.
Speaker 14: The question of chips is also colliding with the tariff battle.
Speaker 14: Expert controls and the question of whether the Trump administration
Speaker 14: will loosen its grip on China's access to the advanced
Speaker 14: technology advanced semiconductors is going to be a key question
Speaker 14: as these negotiations take place.
Speaker 3: Let's therefore, talk about what the executives are wanting at
Speaker 3: this moment. And Jason, you represent the most innovative companies
Speaker 3: in the United States, So how do they think about
Speaker 3: this so called competition with China? Are they thinking that
Speaker 3: they need to raise and where are our bottlenecks?
Speaker 5: More broadly here, it's very real.
Speaker 15: And if we go all the way back to the
Speaker 15: very second day of the Trump administration, you saw a
Speaker 15: big announcement Project Stargate, as Jackie mentioned, companies like open
Speaker 15: Ai and Oracle and soft Bank and Vidia investing five
Speaker 15: hundred billion dollars.
Speaker 5: In AI capability.
Speaker 15: Here in the United States, it's definitely a race and
Speaker 15: the primary competitor in that race is China. China has
Speaker 15: aspirations to compete globally on AI, we need to win the.
Speaker 5: Race here in the United States.
Speaker 15: So what the technology industry is really looking for is
Speaker 15: an environment that's conducive to investment in the US. You
Speaker 15: saw it with Project Stargate. You've seen a lot of
Speaker 15: other announcements. Apple announcing five hundred billion dollars as an
Speaker 15: investment in the US, IBM announcing one hundred and fifty
Speaker 15: billion dollars.
Speaker 5: The list goes on.
Speaker 15: It's up over two trillion dollars at this point. But
Speaker 15: there's certainty that's necessary. We got a little bit of
Speaker 15: that last week with the big beautiful bill passing and
Speaker 15: restoring the tax incentives for investment in manufacturing, accelerating the
Speaker 15: incentives for investing, particularly in manufacturing.
Speaker 5: And technology in the United States.
Speaker 15: The next thing we need is some trade certainty and
Speaker 15: a move away from tariffs's a trade strategy and into
Speaker 15: trade agreements so we can expand that investment in the
Speaker 15: United States as well.
Speaker 2: Well.
Speaker 3: Sam Way in here on the trade negotiations with China
Speaker 3: in particular, and whether there will be any wiggle room
Speaker 3: to be seeing what China ultimately wants is access to
Speaker 3: certain semiconductors. Will that be a bargaining chip that could
Speaker 3: be loosened in some way.
Speaker 14: So a year ago I was in Beijing and I
Speaker 14: heard from interlocutors, we will not come to the table.
Speaker 14: And this was before the tariff battle. This was just
Speaker 14: regular tensions. We will not really come to the table
Speaker 14: to work things out with US unless export controls are lifted.
Speaker 14: And a year ago that was an impossibility. But when
Speaker 14: the two sides met in London last month to try
Speaker 14: to get things back on track, we had the Secretary
Speaker 14: of Commerce, Howard Lutnik included in the negotiations alongside Treasury
Speaker 14: Secretary in USTR, which meant export controls are now on
Speaker 14: the table. The question is how far will they go.
Speaker 14: In April we saw in Video's H twenty chips put
Speaker 14: on the export control list. Those were designed to be
Speaker 14: compliant with China's market, But we don't know will they
Speaker 14: lift that, Will the Trump administration lift that? Are they
Speaker 14: going to go even further and unwind some of the
Speaker 14: buyer administration controls on advanced semiconductors equipment. We saw loosening
Speaker 14: on electronic design software just in the last week.
Speaker 11: Or so so there's a lot of room to work.
Speaker 14: With and the question is what specific tools will be
Speaker 14: acceptable to the Hawks in the Trump administration when China
Speaker 14: is eager to get sort of at this issue that
Speaker 14: has been front and center for them for a long time.
Speaker 3: I know this is a hard one for you, Jason,
Speaker 3: but to single out a few of your members AMD
Speaker 3: and VIDEO.
Speaker 2: They want access still to China.
Speaker 3: Do you think that's ever going to be something that
Speaker 3: they're managing to convince that they can do that safely.
Speaker 15: There is a way to balance national security interests that
Speaker 15: Sam made reference to with the economic interests of American companies.
Speaker 15: Ninety five percent of the people that live on the
Speaker 15: planet do not live in the United States, and if
Speaker 15: we deny American companies access to global markets, we're denying
Speaker 15: them the opportunity to really expand economically and succeed. There
Speaker 15: is a way, and the Trump administration has been moving
Speaker 15: in this direction to make sure that the Chinese Communist
Speaker 15: Party doesn't get access to the most sensitive technology for
Speaker 15: its military purposes. The Biden administration tried this with the
Speaker 15: AI diffusion rule that you mentioned. They did it in
Speaker 15: a very poor way. They restricted access to our allies
Speaker 15: around their world getting access to American AI technology and
Speaker 15: semiconductive technology.
Speaker 5: That rule has been scrapped. We're moving forward and ensuring.
Speaker 15: That we make a legitimate national security approach, not harbor
Speaker 15: that economic interests as well. In other words, we can't
Speaker 15: in the name of national security, deny American companies access
Speaker 15: to the rest of the world.
Speaker 5: We can balance it correctly.
Speaker 15: We can make sure that the markets are open and accessible,
Speaker 15: but make sure that the national security interests are protected
Speaker 15: as well.
Speaker 3: Sam Many would say that some of the moves on
Speaker 3: limiting copper, for example, into the United States is about
Speaker 3: national security in the longer term to make it more
Speaker 3: self sufficient, but that takes decades. Just tell us about
Speaker 3: some of the certainty that's necessary. I think of rare
Speaker 3: earth elements, rare earth metals so dependent on China. That's
Speaker 3: a big bargaining chip of China versus the US. But
Speaker 3: thus father hasn't been this sort of support coming necessary
Speaker 3: from the administration to allow us.
Speaker 2: To mine it more in the United States. That certainty
Speaker 2: isn't there.
Speaker 14: The thing about rare earth that everyone will say is
Speaker 14: they're not that rare, but they're really dirty, and it
Speaker 14: will take a long time and do we actually want.
Speaker 2: Those industries here.
Speaker 14: But certainly I think there's been an emphasis on reducing
Speaker 14: bottlenecks because these are choke points that can be weaponized
Speaker 14: against the United States, and Beijing realized that they'd stumbled
Speaker 14: upon an incredibly important choke point. Looking at where the
Speaker 14: negotiations stand right now on Earth specifically, you know, when
Speaker 14: the two sides came back to the table they said
Speaker 14: we have a deal. I noticed two things from the
Speaker 14: Chinese side, specifically on rare earths. One, they agreed that
Speaker 14: they were going to loosen their controls and speed up approvals,
Speaker 14: but they're only going to be granting licenses for six
Speaker 14: months at a time, which means Beijing wants to keep
Speaker 14: this in their back pocket as leverage. And the second
Speaker 14: is we've heard that US companies in the process of
Speaker 14: applying for those approvals have been subject to very invasive
Speaker 14: questions from the Chinese government for sensitive business information. So
Speaker 14: we're not out of the woodwork yet, and I think
Speaker 14: it's yet to be seen what the Chinese government is
Speaker 14: willing to give on rare earths.
Speaker 2: Very briefly, Jason, the other key bottle necks talent, have we.
Speaker 5: Got a hair.
Speaker 15: Yeah, So China is racing to deploy that AI talent.
Speaker 15: The Trump administration just last week announced a new AI
Speaker 15: education initiative that ITI and a number of our member
Speaker 15: companies signed onto to develop the homegrown talent that we need.
Speaker 15: We also need to attract the best and the brightest
Speaker 15: from around the world. Most technology companies that we're familiar
Speaker 15: with were started by first or second generation immigrants, and
Speaker 15: we need that next generation of AI talent to happen here,
Speaker 15: to start their companies here, to stay here.
Speaker 5: So we need to attract them as students.
Speaker 15: And we also need to educate the workforce to make
Speaker 15: sure that we have the best AI talent here in
Speaker 15: the United States doing that invention, doing that creating and
Speaker 15: job descriptions that we want to see out there.
Speaker 3: What a great conversation Jason Oxman from the Information Technology
Speaker 3: Industry Council right here in New York, along with Sam
Speaker 3: Sachs from New America. It's been wonderful having you both.
Speaker 2: Thank you.
Speaker 3: META it is investing three and a half billion dollars
Speaker 3: in eslor Luxotka, purchasing a minority state in the company
Speaker 3: as it boots his aiglasses ambitions. So all according to sources,
Speaker 3: some more blue mos Kurt Wagner joins us you help
Speaker 3: break this story. Basically, they are the maker of ray
Speaker 3: bands and Oakley's the power the Meta AI story.
Speaker 6: That's right.
Speaker 16: This is a company that Meta has been partnering with
Speaker 16: on the product side for several years now. You mentioned
Speaker 16: the ray ban, Meta glasses, the Oakley glasses that they
Speaker 16: just announced last month, So this is a company has
Speaker 16: had a long relationship with and actually this investment has
Speaker 16: been expected, but now it's final.
Speaker 11: And what I think it does is just it ties
Speaker 11: these two companies.
Speaker 16: Together in a more formal way, but it also signals
Speaker 16: how much Meta continues to believe in this idea.
Speaker 11: Of AI glasses as the future.
Speaker 8: Right.
Speaker 16: I mean this is not a small investment. This is
Speaker 16: a sign that they are not only building these things,
Speaker 16: but that they're kind of putting their money where their
Speaker 16: mouth is here and this is the future for them.
Speaker 3: Yeah, they want to profit from the upside as well
Speaker 3: as they deepen that tie cut. Just pivoting to another
Speaker 3: AI story, and one is XAI and just looking at
Speaker 3: x I mean, how do you react to Linda Yacarino
Speaker 3: saying she no longer going to be CEO.
Speaker 16: Yeah, well I was surprised, not because we haven't been
Speaker 16: talking about this for a while, right, I think everyone's
Speaker 16: sort of been wondering how long she would last since
Speaker 16: she took the job two years ago. But I was
Speaker 16: just at can Lyons in the south of France a
Speaker 16: few weeks ago, and she was there. She was representing X,
Speaker 16: she was on stage, she was in meetings with partners
Speaker 16: and advertisers, and so I kind of thought that she
Speaker 16: would be around a little a little longer because of that.
Speaker 16: But look, this is a job that I've said from
Speaker 16: the beginning, is incredibly hard, especially when Elon Musk is
Speaker 16: the owner of this company, because he does not do
Speaker 16: things that make selling advertising on X an easy proposition, right,
Speaker 16: So her whole job is to make X seems safe,
Speaker 16: brand friendly, And when you have you know, Musk out
Speaker 16: there doing the thing that he tends to do, it.
Speaker 11: Is a it is a tough, a tough gig. And
Speaker 11: so I'm not.
Speaker 16: Surprised that, you know, two years in, she's decided.
Speaker 2: To move on and thirty seconds.
Speaker 3: It's also hard when Grock the chatbod is doing the
Speaker 3: things it's been doing, anti semitic commentary was what was
Speaker 3: reported yesterday, but they've got a big update tonight.
Speaker 5: They do.
Speaker 16: There's a live stream tonight about Grock four. You mentioned
Speaker 16: that the timing of yesterday when Grok was viewing this
Speaker 16: really vitriolic stuff of anti Semitism things like that that
Speaker 16: a lot of people took issue with, and so it'll
Speaker 16: be interesting to see how they address that if they
Speaker 16: address that tonight on the live stream. But it works
Speaker 16: back been that late tonight Pacific time.
Speaker 2: Forever busy, bloombos Kote Wagner. Thanks for bringing us the story.
Speaker 2: Now that does it for this edition of Bloomberg Tech.
Speaker 2: Do not forget to check.
Speaker 3: Out our podcast finding on the terminal as well as
Speaker 3: online on Apple, Spotify, and iHeart this is Bloomberg Tech.