1 00:00:02,520 --> 00:00:07,400 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. 2 00:00:07,760 --> 00:00:08,160 Speaker 2: One of the. 3 00:00:08,080 --> 00:00:10,960 Speaker 1: Biggest news that we had this morning was learning that 4 00:00:11,000 --> 00:00:13,680 Speaker 1: Michael and Susan Dell are making a six point twenty 5 00:00:13,760 --> 00:00:17,040 Speaker 1: five billion dollar donation to jumpstart investment accounts for twenty 6 00:00:17,120 --> 00:00:20,400 Speaker 1: five million US children. The act of philanthropy from the 7 00:00:20,440 --> 00:00:22,520 Speaker 1: co founder of Dell and his wife will apply to 8 00:00:22,600 --> 00:00:26,600 Speaker 1: children ten and under who aren't already eligible for government money, 9 00:00:27,200 --> 00:00:30,680 Speaker 1: with Dell saying she expects to reach eighty percent of 10 00:00:30,800 --> 00:00:33,479 Speaker 1: US children in that age range. The move builds on 11 00:00:33,520 --> 00:00:35,960 Speaker 1: the Investor America initiative out of the White House, which 12 00:00:36,920 --> 00:00:39,360 Speaker 1: made me know as the President push to financially cushion 13 00:00:39,440 --> 00:00:42,440 Speaker 1: young Americans. Joining us right now around the desk is 14 00:00:42,680 --> 00:00:45,280 Speaker 1: Caroline Hidge. She is the co host of Bloomberg Tech, 15 00:00:45,560 --> 00:00:48,760 Speaker 1: and she brings us right now the CEO of Dell, Michael. 16 00:00:48,479 --> 00:00:53,479 Speaker 3: Dell, a historic moment. Michael, Welcome to Bloomberg Compound. Interest 17 00:00:53,520 --> 00:00:55,520 Speaker 3: the eighth one of the world, some would say, and 18 00:00:55,560 --> 00:00:58,720 Speaker 3: you're giving it with two hundred and fifty million US 19 00:00:58,840 --> 00:01:00,960 Speaker 3: kids each getting a job start of two hundred and 20 00:01:00,960 --> 00:01:03,960 Speaker 3: fifty dollars, Why is this the right act of philanthropy 21 00:01:04,000 --> 00:01:04,200 Speaker 3: for you? 22 00:01:04,600 --> 00:01:04,880 Speaker 2: Well? 23 00:01:05,200 --> 00:01:08,160 Speaker 4: You know, our foundation has been focused on children since 24 00:01:08,200 --> 00:01:12,679 Speaker 4: the beginning, and when this Investment America Act was passed 25 00:01:13,600 --> 00:01:17,360 Speaker 4: earlier this year, you know, we saw it as a 26 00:01:17,440 --> 00:01:23,120 Speaker 4: platform for companies and families and communities and philanthropists to 27 00:01:23,240 --> 00:01:26,640 Speaker 4: contribute to these accounts. And as you probably know, you know, 28 00:01:26,680 --> 00:01:29,600 Speaker 4: the government is giving one thousand dollars to every newborn 29 00:01:30,200 --> 00:01:30,600 Speaker 4: in an. 30 00:01:30,520 --> 00:01:32,959 Speaker 2: Account that will essentially go in the S and P. 31 00:01:33,080 --> 00:01:36,520 Speaker 4: Five hundred and compound over time, and when they're you know, 32 00:01:36,560 --> 00:01:39,800 Speaker 4: the child's eighteen, it becomes like an IRA can be 33 00:01:39,880 --> 00:01:44,360 Speaker 4: used for education, to start a business, to start a family, 34 00:01:45,400 --> 00:01:48,480 Speaker 4: for continued savings, to buy a home. And so what 35 00:01:48,520 --> 00:01:52,040 Speaker 4: Susan and I wanted to do was help out some 36 00:01:52,080 --> 00:01:56,680 Speaker 4: of the kids that weren't included in the government program. 37 00:01:57,040 --> 00:02:00,400 Speaker 4: And so the kids that are tended under that live 38 00:02:00,440 --> 00:02:03,440 Speaker 4: in zip codes where the median income is one hundred 39 00:02:03,440 --> 00:02:05,920 Speaker 4: and fifty thousand dollars or less that aren't in the 40 00:02:05,920 --> 00:02:09,280 Speaker 4: government program. So I think ages two to ten, we're 41 00:02:09,320 --> 00:02:12,880 Speaker 4: going to give twenty five million of those children two 42 00:02:12,960 --> 00:02:16,720 Speaker 4: hundred and fifty dollars each in their account. And we 43 00:02:16,800 --> 00:02:22,680 Speaker 4: hope that you know this, you know, it inspires them 44 00:02:22,840 --> 00:02:27,560 Speaker 4: and gives them hope and opportunity and prosperity. I've spoken 45 00:02:27,600 --> 00:02:29,920 Speaker 4: with a number of other philanthropists. I believe you'll see 46 00:02:29,919 --> 00:02:33,680 Speaker 4: some other significant gifts, and we know many companies are 47 00:02:33,720 --> 00:02:37,320 Speaker 4: going to match the government's contribution, as Dell Technologies is 48 00:02:37,360 --> 00:02:39,680 Speaker 4: certainly doing, and a number of companies. 49 00:02:39,320 --> 00:02:40,120 Speaker 2: Have already announced. 50 00:02:40,160 --> 00:02:44,400 Speaker 4: So we're super excited about what this can become over 51 00:02:44,480 --> 00:02:49,520 Speaker 4: time as these accounts grow to be something significant. 52 00:02:49,720 --> 00:02:50,480 Speaker 2: Tell us about that. 53 00:02:50,520 --> 00:02:53,600 Speaker 3: Tell us about how you are calling on companies like 54 00:02:53,720 --> 00:02:56,799 Speaker 3: you to match what many are calling the Trump accounts, 55 00:02:57,040 --> 00:02:59,560 Speaker 3: but also will those match what you're now doing for 56 00:02:59,560 --> 00:03:01,280 Speaker 3: two to ten ten year olds, maybe ten year olds 57 00:03:01,280 --> 00:03:02,920 Speaker 3: and above. Have you filled it many calls? 58 00:03:05,520 --> 00:03:08,960 Speaker 2: Well, you know, we just announced this this morning. 59 00:03:09,000 --> 00:03:12,760 Speaker 4: I did speak with a number of philanthropists in the 60 00:03:12,960 --> 00:03:16,840 Speaker 4: weeks leading up to our announcement, and you know, well, 61 00:03:16,880 --> 00:03:19,320 Speaker 4: I won't speak for them. We'll let them make their 62 00:03:19,360 --> 00:03:23,240 Speaker 4: own announcements and then they could be designed in a 63 00:03:23,240 --> 00:03:26,600 Speaker 4: different way. I think you'll see some people adopting particular 64 00:03:26,639 --> 00:03:31,480 Speaker 4: states or you know, particular communities. And in fact, we 65 00:03:31,600 --> 00:03:34,840 Speaker 4: started with the idea of doing this only in the 66 00:03:34,880 --> 00:03:38,720 Speaker 4: state of Texas, but then we decided to do it nationally, 67 00:03:39,160 --> 00:03:43,960 Speaker 4: So there can be many varieties and alternatives here, but 68 00:03:44,600 --> 00:03:48,480 Speaker 4: we do think that this will be catalytic and that 69 00:03:49,560 --> 00:03:53,680 Speaker 4: more philanthropists and companies will will join us over time. 70 00:03:54,520 --> 00:03:59,320 Speaker 4: And again, this is a platform for the future of 71 00:03:59,320 --> 00:04:00,120 Speaker 4: these children. 72 00:04:00,560 --> 00:04:04,280 Speaker 3: Is it a platform for more giving from philanthropies or 73 00:04:04,320 --> 00:04:09,240 Speaker 3: from billionaires such as yourself via government. It's extraordinary turn 74 00:04:09,280 --> 00:04:12,480 Speaker 3: of events that here you work working directly with the Treasury, Michael. 75 00:04:12,680 --> 00:04:15,320 Speaker 3: We've also seen Timothy Mellon at one point offering to 76 00:04:15,360 --> 00:04:18,040 Speaker 3: help cover the costs of US troops during the government shutdown. 77 00:04:18,200 --> 00:04:20,880 Speaker 3: Will more people be pushed and think it's right to 78 00:04:20,920 --> 00:04:22,440 Speaker 3: work through the federal government. 79 00:04:24,400 --> 00:04:28,479 Speaker 2: Well, I would say, we're not working through the federal government. 80 00:04:29,600 --> 00:04:34,080 Speaker 4: We are giving two hundred fifty dollars directly to twenty 81 00:04:34,080 --> 00:04:35,360 Speaker 4: five million children. 82 00:04:36,520 --> 00:04:39,680 Speaker 3: And this is being executed. I think we've just had 83 00:04:39,720 --> 00:04:42,840 Speaker 3: a technolog knowledgy issue there. But Michael, this are being 84 00:04:42,880 --> 00:04:45,960 Speaker 3: executed by the Treasury. When you think about how the 85 00:04:45,960 --> 00:04:48,520 Speaker 3: process has been, you hope that I understand going to 86 00:04:48,560 --> 00:04:50,400 Speaker 3: be seamless. It's going to be process is going to 87 00:04:50,440 --> 00:04:52,039 Speaker 3: be swift. How quickly do you think it'll be in 88 00:04:52,040 --> 00:04:55,240 Speaker 3: the hands of those children and indeed will it be 89 00:04:55,240 --> 00:04:58,200 Speaker 3: in alignment with the Trump accounts? So July of next. 90 00:04:58,080 --> 00:05:00,840 Speaker 2: Year, Yeah, so. 91 00:05:03,000 --> 00:05:06,839 Speaker 4: On July fourth or I think fifth, actually because the 92 00:05:06,880 --> 00:05:11,960 Speaker 4: fourth is a holiday of next year, every parent will 93 00:05:12,000 --> 00:05:16,440 Speaker 4: be able to claim the account for their child that's 94 00:05:16,480 --> 00:05:17,280 Speaker 4: eighteen and under. 95 00:05:18,120 --> 00:05:21,200 Speaker 2: And originally those those accounts will be. 96 00:05:21,520 --> 00:05:24,680 Speaker 4: You know, held in custody by a custody bank, and 97 00:05:24,680 --> 00:05:28,120 Speaker 4: then eventually you'll be able to choose your bank or 98 00:05:28,160 --> 00:05:32,080 Speaker 4: your you know brokerage that you know holds the account 99 00:05:32,200 --> 00:05:34,360 Speaker 4: for you and it's the property of the child. 100 00:05:35,200 --> 00:05:37,800 Speaker 3: What banks, what asset managements have you been talking to? 101 00:05:37,960 --> 00:05:40,320 Speaker 3: How do you think from an infrastructure perspective this would work? 102 00:05:40,360 --> 00:05:45,000 Speaker 2: Michael right. I have not been having the conversations with 103 00:05:45,080 --> 00:05:46,760 Speaker 2: the banks. I actually a number of. 104 00:05:46,800 --> 00:05:49,400 Speaker 4: Them have told me that they're interested in being the 105 00:05:49,440 --> 00:05:54,000 Speaker 4: banks to hold these accounts. I think it'll be you know, 106 00:05:54,040 --> 00:05:58,520 Speaker 4: all the major banks, and you know, the parents will 107 00:05:58,560 --> 00:06:01,560 Speaker 4: be able to choose which ever their favorite bank or 108 00:06:03,000 --> 00:06:04,960 Speaker 4: you know stock brokerages. 109 00:06:05,600 --> 00:06:08,560 Speaker 3: What's so interesting is this has bipartisan supporters. We understand 110 00:06:08,600 --> 00:06:12,640 Speaker 3: from Netta's being met just yesterday, asking Cory Booker as 111 00:06:12,680 --> 00:06:15,839 Speaker 3: well as Ted Cruz asking those to come alongside you 112 00:06:16,000 --> 00:06:16,880 Speaker 3: for corporates too. 113 00:06:17,040 --> 00:06:19,920 Speaker 2: That's right. I've spoken with that's right. 114 00:06:19,960 --> 00:06:23,279 Speaker 4: I spoke with Senator Booker last night about this. I 115 00:06:23,320 --> 00:06:28,159 Speaker 4: spoke with Senator Cruz about this earlier today, and there 116 00:06:28,240 --> 00:06:30,760 Speaker 4: is completely bipartisan support. 117 00:06:30,480 --> 00:06:33,080 Speaker 2: For this idea. It's not a political initiative. 118 00:06:33,839 --> 00:06:36,960 Speaker 4: This is about investing in children, and we think that's 119 00:06:37,000 --> 00:06:38,920 Speaker 4: the smartest investment that we can make. 120 00:06:39,400 --> 00:06:41,920 Speaker 3: Michael, why do you think it wasn't picked up earlier 121 00:06:41,960 --> 00:06:44,480 Speaker 3: than this since twenty twenty one shout out to Brad 122 00:06:44,520 --> 00:06:48,919 Speaker 3: Gerstner is almost his idea, this initiative. Why did it 123 00:06:48,960 --> 00:06:50,599 Speaker 3: take this administration this time? 124 00:06:52,240 --> 00:06:53,120 Speaker 2: It's a great question. 125 00:06:53,200 --> 00:06:55,719 Speaker 4: Brad did tell me about this in twenty twenty one. 126 00:06:55,880 --> 00:06:58,560 Speaker 4: We talked to the prior administration about it. I think 127 00:06:58,560 --> 00:07:01,960 Speaker 4: it's hard to get legislative action like this done, but 128 00:07:02,440 --> 00:07:05,000 Speaker 4: now it's the law, and so here we are, and 129 00:07:05,040 --> 00:07:07,800 Speaker 4: so we have a great opportunity for the future to 130 00:07:08,320 --> 00:07:10,280 Speaker 4: build on this platform. 131 00:07:10,960 --> 00:07:14,440 Speaker 3: You really have been focused on education and on kids, 132 00:07:14,560 --> 00:07:17,720 Speaker 3: Michael in your philanthropic work. You're also a man very 133 00:07:17,720 --> 00:07:19,720 Speaker 3: focused on the world of artificial intelligence. 134 00:07:20,040 --> 00:07:20,880 Speaker 2: What's the life going to. 135 00:07:20,800 --> 00:07:23,240 Speaker 3: Be like for these kids going forward? Do you think 136 00:07:23,280 --> 00:07:25,880 Speaker 3: how much will they be allocating their money, how much 137 00:07:25,920 --> 00:07:27,320 Speaker 3: will they be allocating their time? 138 00:07:27,480 --> 00:07:29,200 Speaker 2: What does the work we look like do you. 139 00:07:29,160 --> 00:07:34,320 Speaker 4: Think, Well, there could be lots of you know, debates 140 00:07:34,320 --> 00:07:35,640 Speaker 4: about that. 141 00:07:36,200 --> 00:07:36,440 Speaker 2: You know. 142 00:07:36,480 --> 00:07:40,600 Speaker 4: What I would say is that I would encourage kids 143 00:07:40,640 --> 00:07:44,480 Speaker 4: and parents and educators to focus on the critical thinking 144 00:07:44,520 --> 00:07:48,400 Speaker 4: skills and being able to analyze problems without the assistance 145 00:07:48,440 --> 00:07:52,280 Speaker 4: of technology, but also use technology as a as a 146 00:07:52,360 --> 00:07:54,880 Speaker 4: resource and as a tool. You know. At the heart 147 00:07:54,920 --> 00:07:58,680 Speaker 4: of this debate really is as we get new and 148 00:07:58,760 --> 00:08:05,320 Speaker 4: better tools, are we doing more work and solving more problems, 149 00:08:06,160 --> 00:08:10,960 Speaker 4: you know, and discovering new science and progressing further in 150 00:08:11,000 --> 00:08:14,080 Speaker 4: the world, growing the economy, or are we doing the 151 00:08:14,120 --> 00:08:16,600 Speaker 4: same amount of work with just fewer people because we 152 00:08:16,640 --> 00:08:20,040 Speaker 4: have the tools you can put me down for economic 153 00:08:20,080 --> 00:08:25,160 Speaker 4: growth and prosperity as a result of these tools. Certainly 154 00:08:25,200 --> 00:08:29,920 Speaker 4: there will be challenges and dislocations, and retraining is certainly required. 155 00:08:30,000 --> 00:08:34,400 Speaker 4: But from what I'm seeing, I think this is largely 156 00:08:34,440 --> 00:08:39,840 Speaker 4: going to result in some really great outcomes. But yeah, 157 00:08:40,040 --> 00:08:46,160 Speaker 4: again it's it's not guaranteed success because of new technology that. 158 00:08:46,200 --> 00:08:50,840 Speaker 3: Dissipation Michael, whose responsibility is that is that big text 159 00:08:50,960 --> 00:08:54,800 Speaker 3: responsibility to retrain to reskill to help at least pay 160 00:08:54,800 --> 00:08:56,840 Speaker 3: for it. Is it government's responsibility education? 161 00:08:59,480 --> 00:09:00,160 Speaker 2: I think it's a. 162 00:09:00,200 --> 00:09:03,400 Speaker 4: Collective responsibility that we all have. I think every company 163 00:09:03,559 --> 00:09:08,760 Speaker 4: has to reskill its workforce. I think the education system 164 00:09:09,360 --> 00:09:15,200 Speaker 4: has to adapt and build the new skills and capabilities, 165 00:09:15,400 --> 00:09:19,040 Speaker 4: and you know there's a role for all of us 166 00:09:19,040 --> 00:09:20,040 Speaker 4: to play in that. 167 00:09:20,840 --> 00:09:23,520 Speaker 3: And excuse me for this pivot, Michael, but of course 168 00:09:23,600 --> 00:09:26,959 Speaker 3: many want to understand. Of course the focus on infrastructure 169 00:09:26,960 --> 00:09:29,280 Speaker 3: from a money perspective here to kids. There's also the 170 00:09:29,320 --> 00:09:31,960 Speaker 3: focus on the fact that stocks have to go up 171 00:09:31,960 --> 00:09:33,880 Speaker 3: into the right in the longer term for this to 172 00:09:33,920 --> 00:09:36,840 Speaker 3: benefit those children. What do you think about a concern 173 00:09:36,840 --> 00:09:39,439 Speaker 3: about an AI bubble and there's really reaping rewards from 174 00:09:39,440 --> 00:09:42,240 Speaker 3: a productivity perspective, or are we in some sort of 175 00:09:42,520 --> 00:09:44,840 Speaker 3: bubble or circular finance concern? 176 00:09:44,920 --> 00:09:51,360 Speaker 4: For you, certainly markets do fluctuate, and you know that 177 00:09:51,400 --> 00:09:53,760 Speaker 4: well on Blueberg as you report about it every every 178 00:09:53,800 --> 00:09:59,000 Speaker 4: single day. Long term, we think, you know, you know, 179 00:09:59,559 --> 00:10:02,720 Speaker 4: invests these accounts in the s and P. 180 00:10:02,880 --> 00:10:05,680 Speaker 2: Five hundred is a very good way. 181 00:10:05,559 --> 00:10:10,920 Speaker 4: To compound over time for these children. When I look 182 00:10:10,960 --> 00:10:16,520 Speaker 4: at what's going on today in the enormous buildout in AI. 183 00:10:16,800 --> 00:10:20,000 Speaker 4: What I see is a lot more demand than supply 184 00:10:20,720 --> 00:10:21,840 Speaker 4: for the ingredients. 185 00:10:22,040 --> 00:10:23,840 Speaker 2: And certainly, you know in our. 186 00:10:23,720 --> 00:10:27,840 Speaker 4: Business and many of the companies in this enormous buildout 187 00:10:29,000 --> 00:10:32,840 Speaker 4: business is very good because there's an enormous demand for 188 00:10:32,960 --> 00:10:36,120 Speaker 4: what these models are creating, which effectively is intelligence. And 189 00:10:36,679 --> 00:10:39,880 Speaker 4: if you now have a tool that you know causes 190 00:10:39,960 --> 00:10:43,120 Speaker 4: everyone in your company to have fifteen more IQ points 191 00:10:43,160 --> 00:10:45,559 Speaker 4: in their daily work, well that's something you probably want 192 00:10:46,120 --> 00:10:50,760 Speaker 4: as much as you can get. And so there's enormous 193 00:10:50,760 --> 00:10:54,800 Speaker 4: demand here. I think next year will be in a situation, 194 00:10:55,160 --> 00:11:00,280 Speaker 4: very likely where the demand exceeds the supply in any 195 00:11:00,320 --> 00:11:04,280 Speaker 4: of the critical ingredients that go into the most advanced 196 00:11:04,320 --> 00:11:05,880 Speaker 4: systems that we're building. 197 00:11:06,720 --> 00:11:10,000 Speaker 3: Well, you're certainly building something extraordinary. On this Giving Tuesday, 198 00:11:10,200 --> 00:11:12,880 Speaker 3: twenty five million children two hundred and fifty dollars each 199 00:11:13,200 --> 00:11:16,079 Speaker 3: six point twenty five billion dollars being philanthropically given by 200 00:11:16,080 --> 00:11:18,600 Speaker 3: yourself and Susan Dell. We thank you so much, Michael 201 00:11:18,640 --> 00:11:19,680 Speaker 3: dal for joining us today. 202 00:11:20,320 --> 00:11:21,200 Speaker 2: Thank you, thank you. 203 00:11:21,640 --> 00:11:23,760 Speaker 4: We think the smartest investment we could make is in 204 00:11:23,800 --> 00:11:24,800 Speaker 4: our children.