WEBVTT - Tesla's Cybertruck and OpenAI's Tender Offer 0:00:01.720 --> 0:00:07.000 From Mahard where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:07.320 --> 0:00:11.360 This is Bloomberg Technology with Caroline Hyde and Ed lud Love. 0:00:25.320 --> 0:00:27.520 I'm Caroline Heine and Bloomberg's weeldead quarters in New. 0:00:27.520 --> 0:00:30.080 York, and I'm Ed Ludlow in San Francisco. This is 0:00:30.080 --> 0:00:32.000 Bloomberg Technology coming. 0:00:31.720 --> 0:00:34.840 Up full coverage on Tesla's release of the cyber truck, 0:00:34.920 --> 0:00:38.120 of the years of development delayser manufacturing snags. Will bring 0:00:38.159 --> 0:00:40.880 you the details on the long awaited and rather expensive 0:00:40.960 --> 0:00:41.760 electric vehicles. 0:00:42.560 --> 0:00:44.840 An open AI is sticking with a plan to let 0:00:44.840 --> 0:00:47.880 employees sell shares in the company through a tender offer. 0:00:47.880 --> 0:00:50.479 We'll have more on the company's plans. Amid the tumult 0:00:50.760 --> 0:00:51.839 over Altman. 0:00:51.840 --> 0:00:55.640 Plus ex CEO Linda Jacarino is backing her boss after 0:00:55.720 --> 0:00:57.720 his insults to brands backing. 0:00:57.440 --> 0:00:58.520 Away from the platform. 0:00:58.640 --> 0:01:01.200 We'll bring you the memo to start so much more 0:01:01.240 --> 0:01:03.560 throughout this hour, Let's look at what's happening in the markets. 0:01:03.600 --> 0:01:05.880 Because first day of the new month, and where I'm 0:01:05.920 --> 0:01:09.120 mentioning two up to tens of a percent nothing to 0:01:09.120 --> 0:01:11.400 be sniff. That's certainly nowhere near the ten percent rally 0:01:11.440 --> 0:01:12.920 that we saw throughout the month of November one of 0:01:12.959 --> 0:01:15.760 the best months that we've had in at least years. 0:01:15.760 --> 0:01:18.000 It's the summer of twenty twenty two two year yield. 0:01:18.000 --> 0:01:18.120 Though. 0:01:18.160 --> 0:01:19.920 The fact that we've got bonds and stocks rallying at 0:01:19.920 --> 0:01:22.679 the same time fed J. Powell of course speaking out 0:01:22.720 --> 0:01:25.399 talking about AI in particular how everyone's trying to fathom it, 0:01:25.440 --> 0:01:27.680 but also, of course the leader of the Federal Reserve 0:01:27.800 --> 0:01:31.160 is also largely talking about how they're on pace potentially 0:01:31.240 --> 0:01:33.760 just to be equal balanced in terms of where the 0:01:33.800 --> 0:01:36.520 infratiory pressures are going. So everyone anticipating that we're on 0:01:36.560 --> 0:01:38.280 hold for the rest of this year and maybe we 0:01:38.319 --> 0:01:40.160 see great cuts as soon as the second half of 0:01:40.160 --> 0:01:42.479 next year. Bloomberg Dollar Index therefore falls on the back 0:01:42.480 --> 0:01:44.160 of this two we're off by three tens percent. Let's 0:01:44.200 --> 0:01:46.039 have a look at what is rallying though, and I'm 0:01:46.040 --> 0:01:47.760 looking at what's happening in the world or crypto up 0:01:47.800 --> 0:01:50.080 three percent on the day thirty eighty eight hundred and 0:01:50.520 --> 0:01:53.520 thirty about is where we're training, but one point eclipsing 0:01:53.560 --> 0:01:56.120 what has been a nineteen month high. So if you 0:01:56.200 --> 0:01:57.760 have to go all the way back to summer of 0:01:57.760 --> 0:02:00.240 twenty twenty two. When you last all these sorts of lefeves, 0:02:00.240 --> 0:02:02.720 A thirty eight thousand some now ed calling for that 0:02:02.760 --> 0:02:04.840 forty thousand dollars level to be eclipsed by the end 0:02:04.880 --> 0:02:05.360 of the year. 0:02:05.360 --> 0:02:06.560 But if you've got on the micro. 0:02:07.200 --> 0:02:10.320 Well, our top story and that is Tesla finally launching 0:02:10.639 --> 0:02:13.480 the cyber truck. Shares down one percent and off session lows. 0:02:13.919 --> 0:02:17.720 The news is the pricing. Really we get three variants 0:02:17.840 --> 0:02:20.200 of the cyber truck, and these are the details of 0:02:20.200 --> 0:02:23.120 what it looks like. A rear wheel drive, all wheel drive, 0:02:23.440 --> 0:02:27.680 and then I can't believe it's called this cyberbeast version. 0:02:27.760 --> 0:02:30.320 And I guess that the main takeaway if we start 0:02:30.320 --> 0:02:32.160 with the rear wheel drive is just the case study. 0:02:32.160 --> 0:02:34.560 At the low end, the price is about fifty percent 0:02:34.600 --> 0:02:38.400 above what Tesla marketed it at in twenty nineteen when 0:02:38.440 --> 0:02:40.760 they first unveiled it. I was there in Hawthorne. You'll 0:02:40.760 --> 0:02:44.520 remember on stage the glass smash window six nine hundred 0:02:44.520 --> 0:02:47.960 and ninety dollars before incentives, before gas savings, two hundred 0:02:48.000 --> 0:02:50.320 and fifty miles range. But here's the kicker. This low 0:02:50.440 --> 0:02:53.240 end variant is not available until twenty twenty five. The 0:02:53.280 --> 0:02:57.680 two higher end available next year twenty twenty four. We've 0:02:57.680 --> 0:02:59.840 got a really fantastic guest joining us right now. Sandy 0:03:00.200 --> 0:03:02.960 row is the CEO of monro In Associates, also known 0:03:02.960 --> 0:03:06.320 as the Teardown Titan, and Sandy, you have been on 0:03:06.360 --> 0:03:08.320 the ground in Austin for the last three days. You've 0:03:08.320 --> 0:03:11.079 been driving cyber truck, you've been in the factory, you've 0:03:11.080 --> 0:03:13.640 been speaking to executives. Let's start with the price points. 0:03:13.919 --> 0:03:16.960 What's the conclusion that you draw on the pricing that 0:03:17.000 --> 0:03:17.800 Tesla released. 0:03:19.120 --> 0:03:21.519 Well, I got a chance to drive the Beast and 0:03:22.040 --> 0:03:24.560 that that was the vehicle that they gave me to 0:03:24.639 --> 0:03:32.640 fool around with. It Definitely, it's wicket fast, It's unbelievably comfortable. 0:03:33.280 --> 0:03:36.040 I would put it in with other one hundred thousand 0:03:36.040 --> 0:03:39.120 dollars vehicles. Now I don't know the other two products 0:03:39.160 --> 0:03:41.200 at all because I didn't really get a chance to 0:03:41.240 --> 0:03:46.920 test those, but the one that I had, the cyber truck, Beast, 0:03:47.840 --> 0:03:51.240 definitely as quick. I Don'll scare the daylights out of 0:03:51.400 --> 0:03:54.360 most people. And if you've got it there, there's a 0:03:54.440 --> 0:03:59.280 video of the cyber truck and a portion nine to 0:03:59.320 --> 0:04:03.120 eleven taken off from the line doing a quarter mile 0:04:03.720 --> 0:04:08.560 and the Tesla wins, but it's towing another nine to 0:04:08.600 --> 0:04:12.440 eleven beat the nine to eleven towing a nine to eleven. 0:04:13.240 --> 0:04:16.599 It's fast. It's extremely it's extremely fast. 0:04:16.680 --> 0:04:19.600 It's very very Sandy. Sandy. I called you at the 0:04:19.640 --> 0:04:21.279 top of the show the tear down Tight, and I 0:04:21.320 --> 0:04:23.320 just want to explain to audience your principally be an 0:04:23.360 --> 0:04:27.040 automotive engineer, right, and you kind of rose to prominence 0:04:27.080 --> 0:04:30.480 because you take new vehicles, tear them apart, right down 0:04:30.480 --> 0:04:33.320 to the individual nuts and bolts, and assess what they're 0:04:33.360 --> 0:04:37.400 made of, assess their efficiency. You have been in the factory, 0:04:37.400 --> 0:04:39.760 and I wanted to ask you, based on the design 0:04:39.800 --> 0:04:43.000 of this vehicle and what you saw down in Austin Giga, 0:04:43.040 --> 0:04:44.440 how many do you think they're going to be able 0:04:44.440 --> 0:04:46.719 to build initially this year or the remainder of this 0:04:46.839 --> 0:04:47.599 year next year. 0:04:48.200 --> 0:04:50.760 That's kind of a tough question because there's a lot 0:04:50.839 --> 0:04:53.000 that determines whether or not you're going to be able 0:04:53.040 --> 0:04:55.640 to push out those products. A lot of it has 0:04:55.640 --> 0:04:58.160 to do with the supply chain, and there's a lot 0:04:58.200 --> 0:05:03.080 of things that of push you in different directions as 0:05:03.080 --> 0:05:06.080 far as launch is concerned. What I saw was running 0:05:06.120 --> 0:05:10.919 at sixty jumps per hour, and that's kind of normal. 0:05:11.200 --> 0:05:14.640 The rest of the factories that I've seen, the breast 0:05:14.640 --> 0:05:17.440 of the tessel factories are running at forty three forty two, 0:05:17.480 --> 0:05:21.560 forty three seconds per cit or per station. That's FAST's 0:05:21.920 --> 0:05:25.359 that's really fast. So if they could keep that momentum 0:05:25.440 --> 0:05:27.800 up in twelve months, they should be able to do 0:05:28.720 --> 0:05:31.000 easily two hundred and fifty. It depends on how many 0:05:31.839 --> 0:05:36.880 you know, how many shifts you've got and whatnot, but 0:05:37.120 --> 0:05:38.840 they should easily be able to do two hundred and 0:05:38.839 --> 0:05:41.400 fifty thousand a year at that rate, two hundred and 0:05:41.400 --> 0:05:44.000 fifty to five hundred thousand, depending on how many shifts. 0:05:44.200 --> 0:05:46.080 Yeah, and certainly muff saying that two hundred and fifty 0:05:46.120 --> 0:05:48.039 thousand units possible by twenty twenty five. 0:05:48.160 --> 0:05:49.120 I'm interested, Sandy. 0:05:49.200 --> 0:05:53.360 And ultimately, how does this disrupt the pickup truck market 0:05:53.400 --> 0:05:56.520 at large? You keep on showing the sort of f 0:05:56.560 --> 0:05:59.960 one fifty in particular the ev competitor there, and how 0:06:00.360 --> 0:06:02.680 the price point is a lot cheaper that even though 0:06:02.720 --> 0:06:05.360 E La Musk himself said, look, it looked expensive at 0:06:05.360 --> 0:06:07.279 the time, how do you think it compares to the 0:06:07.320 --> 0:06:08.040 rest of the market. 0:06:09.400 --> 0:06:12.920 Well, everybody's been trying to say that they're all pickup trucks, 0:06:12.960 --> 0:06:18.599 but really and truly, there's a distinct user difference between 0:06:18.640 --> 0:06:24.480 the Rivian, the lightning, the cyber truck, and say something 0:06:24.560 --> 0:06:29.760 like the like the hummer. They they're they're not really 0:06:29.839 --> 0:06:33.560 tuned to attack the same market. They all can do 0:06:33.760 --> 0:06:36.400 pickup truck kind of work. But I think that the 0:06:36.600 --> 0:06:39.920 average person who's got a construction company is probably going 0:06:40.000 --> 0:06:43.719 to be going for a lightning. The guy who wants 0:06:43.760 --> 0:06:45.440 to go to the grocery store and every once in 0:06:45.440 --> 0:06:48.360 a while pick up a two by four, that's probably 0:06:48.680 --> 0:06:55.120 the Rivian kind of story. The hummer, I don't know 0:06:55.160 --> 0:06:58.240 who that is, but I can tell you for me, 0:06:59.440 --> 0:07:04.120 I I'm going to be brutally frank here. I'm trying 0:07:04.120 --> 0:07:06.800 to get a hold of two of them, and and 0:07:06.920 --> 0:07:09.760 one is going to be my drive because for me, 0:07:09.960 --> 0:07:14.320 if you're an outdoorsman, you've got quads, you got hunting 0:07:14.480 --> 0:07:16.920 on your mind, hunting or fishing or whatever, this is 0:07:16.960 --> 0:07:19.480 the This is the truck for you. This this, this 0:07:19.520 --> 0:07:23.000 is what I'm truly looking for. I have a lightning 0:07:23.240 --> 0:07:26.960 at the at the office. My wife owns a ribbean, 0:07:29.000 --> 0:07:30.680 uh like I say, I don't know an awful lot 0:07:30.680 --> 0:07:35.160 about Jim has never never offered me one of their 0:07:35.240 --> 0:07:38.840 hummers for driving. But but for me, what I want 0:07:38.920 --> 0:07:42.120 is the I want a sober truck. 0:07:42.360 --> 0:07:44.200 Okay, you want it Sunday Brand. 0:07:44.480 --> 0:07:48.560 What is any criticism then? What is it that might 0:07:49.240 --> 0:07:51.720 be a slight worry when you go and take that 0:07:51.760 --> 0:07:52.120 pick up? 0:07:53.160 --> 0:07:56.480 Yeah? The I drove it for a few hours and 0:07:56.800 --> 0:07:59.840 the only time, the only time that I had a 0:08:00.520 --> 0:08:04.400 problem with the thing was it was when I had 0:08:04.440 --> 0:08:12.120 to try and still here. Yeah. So anyways, the only 0:08:12.360 --> 0:08:15.160 the only thing that I had that was an issue 0:08:16.280 --> 0:08:19.880 was was when I was going up and I took 0:08:19.880 --> 0:08:22.800 it into a parking garage. And that's scared the living 0:08:22.880 --> 0:08:25.600 lights out of me because it's a very big vehicle 0:08:25.640 --> 0:08:28.320 and it was very difficult for me to determine where 0:08:28.360 --> 0:08:30.480 the corners of the car. And I really didn't want 0:08:30.520 --> 0:08:35.000 to smash I didn't want to smash Tesla's car. So 0:08:36.559 --> 0:08:39.839 I I made the suggestion to the guys and I said, hey, 0:08:39.880 --> 0:08:42.840 you know what, really and truly I need I I 0:08:42.920 --> 0:08:45.719 can't see out of the I can't see where the 0:08:45.760 --> 0:08:49.600 corners are. How about you put up you know, utilize 0:08:49.760 --> 0:08:52.679 the cameras at the front of the vehicle and uh, 0:08:52.760 --> 0:08:55.200 and make it so I can see where the corners 0:08:55.240 --> 0:08:58.760 are with relationship to the walls of the of the 0:09:01.040 --> 0:09:02.760 what do you call it parking garage? That it was 0:09:02.800 --> 0:09:05.320 going on right, and the said, oh, no problem, just 0:09:05.320 --> 0:09:07.600 a software thing. Well, we can probably make that as 0:09:07.640 --> 0:09:08.480 a running change. 0:09:09.040 --> 0:09:12.760 That was the only Sandy. Yes, I'm sorry to interrupt 0:09:12.800 --> 0:09:14.560 your Sandy. I just want to make sure we get 0:09:14.600 --> 0:09:16.400 to this. I guess you haven't had a chance yet 0:09:16.480 --> 0:09:20.160 to do a teardown of the cyber truck for obvious reasons. Now, 0:09:20.280 --> 0:09:23.440 I guess will you do a teardown? But also I 0:09:23.440 --> 0:09:26.400 think the materials here are so important. This is your expertise, right, 0:09:26.720 --> 0:09:32.120 the reinforced steel, the forty eight vault architecture, the wire 0:09:32.240 --> 0:09:34.640 driving all of these things. What's your assessment of that 0:09:34.760 --> 0:09:36.400 design and material. 0:09:37.120 --> 0:09:39.760 Drive by wire is long. I'm going to do that 0:09:39.800 --> 0:09:42.320 one first because that is the thing that is the 0:09:42.320 --> 0:09:46.800 biggest differentiator. Drive by wire. I wouldn't really want to 0:09:46.840 --> 0:09:50.000 do that unless it was forty eight volts system. Going 0:09:50.000 --> 0:09:52.839 from twelve to forty eight volts is huge, I mean 0:09:52.880 --> 0:09:57.560 a gigantic advantage. The system that they've got is a 0:09:57.600 --> 0:10:03.040 double and triple redundancy. So all those naysayers in Washington 0:10:03.080 --> 0:10:06.720 Initiative folks even they had to kind of like nod 0:10:06.760 --> 0:10:09.720 their head and say, Okay, the fact that you've got 0:10:09.720 --> 0:10:13.600 both front steering and rear steering, you've got ten degrees 0:10:13.640 --> 0:10:16.160 of rear steering, means that you can spin this thing 0:10:16.200 --> 0:10:22.080 around like a top. It's really really, really easy to drive, 0:10:22.720 --> 0:10:26.480 especially in parking lot or tight corner type of applications. 0:10:26.880 --> 0:10:34.440 It's spectacular in that respect. The yes, the uh, the 0:10:34.480 --> 0:10:38.640 maneuverability is wonderful. The fact that I've got the ability 0:10:38.720 --> 0:10:41.040 now to have lock to lock at three hundred and 0:10:41.080 --> 0:10:43.600 twenty degrees means that I never have to take my 0:10:43.640 --> 0:10:46.960 hands off the string wheel. It's basically three hundred and 0:10:46.960 --> 0:10:50.040 twenty degrees, you're never you're never going in a complete circle. 0:10:50.559 --> 0:10:54.320 So that makes the uh, that makes the string wheel 0:10:56.040 --> 0:10:58.360 a thing of the past, and everybody's going to be 0:10:58.360 --> 0:10:59.160 going to a yoke. 0:10:59.040 --> 0:11:02.080 Now, Sandy, there's a specific I'm sorry to interrupt you 0:11:02.080 --> 0:11:04.040 saying there's a specific material we have to get to. 0:11:04.200 --> 0:11:07.880 So Elon Musk is talking about how bullet well the 0:11:07.920 --> 0:11:10.800 windows because Elon Musk is talking about how bulletproof it is, 0:11:10.960 --> 0:11:13.320 and he demoed firing a machine gun at it and 0:11:13.400 --> 0:11:16.800 Joe Rogan with a steelhead arrow at it. It makes 0:11:16.880 --> 0:11:20.240 dentse is bulletproof. But what about the glass right that 0:11:20.400 --> 0:11:23.319 I saw Franz do a demo of the window. It 0:11:23.360 --> 0:11:24.120 didn't smash this. 0:11:24.160 --> 0:11:27.880 Time, no, but it would tell you about a shot. 0:11:28.000 --> 0:11:31.480 Well exactly, I made that observation on X because last 0:11:31.480 --> 0:11:33.760 time it was a metal ball bearing, this time it 0:11:33.800 --> 0:11:35.640 was a baseball. But here's my point in my question 0:11:35.800 --> 0:11:39.640 to conclude, what did they tell you there on site 0:11:39.679 --> 0:11:42.280 that they failed to mention during the presentation because they 0:11:42.280 --> 0:11:44.960 didn't talk about the range extender during the presentation and 0:11:45.000 --> 0:11:47.280 they didn't confirm if the glass is bulletproof too. 0:11:47.800 --> 0:11:51.120 Okay, so the glass being bulletproof, the glass that's in 0:11:51.200 --> 0:11:54.080 a normal vehicle, I'm pretty sure it's going to be 0:11:54.880 --> 0:11:57.720 a good temperate glass. And yeah, you could throw rocks 0:11:57.800 --> 0:12:01.800 or snowballs or something like that earlier, but an iron 0:12:01.840 --> 0:12:05.120 ball or a bullet not so much. The thing is, 0:12:05.160 --> 0:12:09.120 though you can buy glass that is bulletproof and you 0:12:09.160 --> 0:12:10.720 can put it in it adds an awful lot of 0:12:10.760 --> 0:12:13.840 extra weight and a huge amount of costs. Let's get 0:12:13.840 --> 0:12:17.079 back to the steel. The stainless steel that they're using 0:12:17.600 --> 0:12:21.680 is a three hundred series stainless steel. For those folks 0:12:21.679 --> 0:12:25.760 that are into technology, it's austenitic, and which means that 0:12:26.040 --> 0:12:29.920 it's non magnetic, and it's quite a bit tougher and 0:12:29.960 --> 0:12:33.920 it won't everything does break down eventually, but it would 0:12:33.920 --> 0:12:36.440 be classified as a true stainless steel. The thing that 0:12:36.480 --> 0:12:39.440 makes it even more impressive or important is that when 0:12:39.440 --> 0:12:42.040 they cold form it, they move it from oustinite to 0:12:42.120 --> 0:12:45.840 Martin site. It probably doesn't mean anything to most people, 0:12:46.160 --> 0:12:50.160 but if you know anything about material science, a Martin 0:12:50.240 --> 0:12:54.600 Cidic structure means that you're moving into something that's really hard. 0:12:55.280 --> 0:12:59.720 So normal steel is not even measured on a rock 0:12:59.720 --> 0:13:06.560 well S scale. But the body structure, the body panels, 0:13:07.320 --> 0:13:12.040 the reason that they can contain bullets of multiple calibers 0:13:12.040 --> 0:13:17.280 and quite frankly, multiple velocities. The reason that it can 0:13:17.320 --> 0:13:20.840 do that is because it's Martin cidic and Martin's site 0:13:20.960 --> 0:13:27.160 is pretty dramatic. You can't you can't believe how tough 0:13:27.200 --> 0:13:29.760 that is, and so that's kind of like what's happening. 0:13:29.800 --> 0:13:34.440 So the steel comes in relatively strong, then it goes 0:13:34.440 --> 0:13:38.959 through cold forming, which basically strengthens it even more. Then 0:13:39.000 --> 0:13:42.560 it goes into one more a little like the air 0:13:42.600 --> 0:13:44.840 bending and whatnot that they do for some of those 0:13:45.559 --> 0:13:49.440 linear lines, like you're showing it right now, you've got 0:13:49.480 --> 0:13:53.160 that line that goes straight across the vehicle. That is 0:13:53.480 --> 0:13:56.880 absolutely something that makes it a whole lot stronger. So 0:13:57.040 --> 0:13:58.880 anytime you can put a bend or a rainkle in 0:13:59.360 --> 0:14:02.000 a piece of sheet metal, that's great. I had no 0:14:02.120 --> 0:14:04.880 idea how they were doing that, but I did get 0:14:04.880 --> 0:14:07.200 a chance to. I did have a chance to look 0:14:07.240 --> 0:14:10.400 at the assembly line. I saw the machines that are 0:14:11.160 --> 0:14:15.440 that are manufacturing it's the Trump machine. It's actually, I 0:14:15.480 --> 0:14:19.440 mean it's it's quite simple, a lot simpler than I 0:14:19.680 --> 0:14:24.560 than I thought. So, yeah, it's it's it's really well engineered. 0:14:24.880 --> 0:14:28.000 And then of course, yeah, the illuminance for the castings 0:14:28.040 --> 0:14:32.000 and whatnot. Also, again, they created their own their own 0:14:32.040 --> 0:14:38.360 material science. It flows incredibly well, like, yeah, we're. 0:14:38.240 --> 0:14:40.040 Gonna have to we're gonna have to leave it there, Sally, 0:14:40.080 --> 0:14:42.360 But I cannot tell you how much you are preaching 0:14:42.400 --> 0:14:44.920 to the right choir here in terms of the intricacies 0:14:45.440 --> 0:14:48.320 of the material science the technology that really goes into 0:14:48.320 --> 0:14:51.400 these tiles and these pick up Sanny Monroe, We thank you, CEO. A. 0:14:51.560 --> 0:15:02.600 Monroe and Associates. Open Ai is tender offer, it's on 0:15:03.080 --> 0:15:05.040 and it can value the AI company at eighty six 0:15:05.080 --> 0:15:07.520 billion dollars. Open Ai is sticking with its plan to 0:15:07.600 --> 0:15:10.080 let employees sell shares and giving them atually little bit 0:15:10.080 --> 0:15:12.120 of extra time a month in fact, to decide whether 0:15:12.160 --> 0:15:14.200 to take part in it. That's been in Bloemberg's Max 0:15:14.240 --> 0:15:17.080 Chraffkin for more because this was the ongoing question, wasn't 0:15:17.120 --> 0:15:21.080 it after all of the termill would ultimately be the 0:15:21.160 --> 0:15:23.360 demand And clearly there is enough demand right well. 0:15:23.360 --> 0:15:25.640 And during the upheaval there was this big question of 0:15:25.800 --> 0:15:28.680 is this company valuable anymore? Is this company even really 0:15:28.720 --> 0:15:31.680 a company? Now we've seen you know, reinstitution of Sam 0:15:31.680 --> 0:15:36.320 Altman and Greg Brockman the president, this newly reconstituted board. 0:15:36.360 --> 0:15:39.080 Clearly Microsoft is on board with this whole business. They're 0:15:39.080 --> 0:15:41.400 going to have an observer seat on the new board. 0:15:41.680 --> 0:15:43.720 And yes, and the tender offer is moving forward, which 0:15:43.760 --> 0:15:46.720 will be really great obviously for employees. I mean it's 0:15:46.760 --> 0:15:48.800 going to be primarily a way for people who own 0:15:48.880 --> 0:15:51.640 shares to cash out, which is going to mean employees, 0:15:52.040 --> 0:15:53.800 but is also of course a sign of healthiness for 0:15:53.840 --> 0:15:54.280 the company. 0:15:54.280 --> 0:15:58.680 Overall. We're just showing the makeup of the new transitional board. 0:15:58.720 --> 0:16:00.840 And just to note to our audience, Marry Summers is 0:16:00.840 --> 0:16:04.000 a paid contributor to Bloomberg's Wall Street Week. For me, 0:16:04.120 --> 0:16:06.880 this story does put the spotlight on Microsoft right partly 0:16:06.920 --> 0:16:10.520 because all the staff were going to defect Microsoft had 0:16:10.520 --> 0:16:14.120 Sam Outman not come back, but the non voting observice. 0:16:14.320 --> 0:16:17.040 When I posted that we'd broken that story, Max, everyone 0:16:17.040 --> 0:16:20.160 asked me, what does that even mean? And remember Satir 0:16:20.240 --> 0:16:22.680 de Nadella said surprises are bad. 0:16:23.600 --> 0:16:26.360 Well, okay, I mean a non voting board, see doesn't 0:16:26.400 --> 0:16:29.520 mean much. I guess in theory what it means is 0:16:29.680 --> 0:16:32.080 what happened the last time is would not happen again 0:16:32.120 --> 0:16:33.920 in the sense that they wouldn't be as surprised as 0:16:33.960 --> 0:16:37.120 they were. So Microsoft had only a couple of minutes 0:16:37.160 --> 0:16:40.120 of notice when Sam Altman was fired the last time, 0:16:40.160 --> 0:16:42.400 so this time one assumes they would have a little 0:16:42.400 --> 0:16:43.080 bit more notice. 0:16:43.240 --> 0:16:44.760 Beyond that, I think it's more of. 0:16:44.720 --> 0:16:48.000 A signal of Microsoft's position with respect to open AI. 0:16:48.360 --> 0:16:49.880 They have a little bit more leverage now. 0:16:49.960 --> 0:16:52.640 So the old board included a couple of board members 0:16:52.720 --> 0:16:56.280 who I would say were not as aligned with Microsoft's interests. 0:16:56.320 --> 0:16:58.880 This new board, i'd say is more pro Microsoft, more 0:16:58.880 --> 0:17:02.440 in the Sachin and camp, and the board seat reflects that, 0:17:02.600 --> 0:17:04.880 or the board absorb observer seat. 0:17:05.400 --> 0:17:08.000 Yeah, many people were trying to sort of say capitalism one. Well, 0:17:08.040 --> 0:17:10.760 ultimately maybe capitalism was always winning, but we've got more 0:17:10.800 --> 0:17:14.040 of a focus, perhaps on profit over safety. Dare I 0:17:14.119 --> 0:17:15.480 say no on that that's going to be in any 0:17:15.480 --> 0:17:18.240 way perhaps completely backseat. We still got to see what 0:17:18.440 --> 0:17:19.919 the rest of the board looks like because at the 0:17:19.920 --> 0:17:22.760 moment they've noted this is undiverse. Brett Taylor's been trying 0:17:22.760 --> 0:17:25.160 to talk about that that needs expanding, and so too 0:17:25.200 --> 0:17:27.840 does Ultimately the recovery process need to be borne out 0:17:27.920 --> 0:17:29.000 these the competition. 0:17:29.080 --> 0:17:31.400 Well, and here's the thing, we still don't know if 0:17:31.440 --> 0:17:33.399 there are going to be huge differences. We still have 0:17:33.600 --> 0:17:36.880 many of the same things that led to the last craziness. Right, 0:17:37.119 --> 0:17:41.119 nonprofit Ostensibly a board that's supposed to still be focused 0:17:41.119 --> 0:17:43.359 on safety is supposed to still be willing to, you know, 0:17:43.440 --> 0:17:45.360 shut this thing down if it ever gets two out 0:17:45.359 --> 0:17:49.399 of hand, and still you have Microsoft, which has this 0:17:49.560 --> 0:17:51.920 huge interest in the company, you know, more than ten 0:17:51.960 --> 0:17:56.200 billion dollars worth of money. Its entire corporate strategy depending 0:17:56.440 --> 0:17:57.680 on this third party that. 0:17:57.680 --> 0:17:58.600 It doesn't control. 0:17:58.760 --> 0:18:01.040 So in a lot of ways, we're where we were before, 0:18:01.200 --> 0:18:03.040 which for Microsoft is going to be fine. They were 0:18:03.080 --> 0:18:05.720 doing well with this relationship, but there is still a 0:18:05.760 --> 0:18:09.120 lot of uncertainty and an investigation. 0:18:08.760 --> 0:18:13.119 Ed, Yeah, an investigation into what originally happened, led by 0:18:13.160 --> 0:18:16.399 an independent party. Check out Max Chafkins Bloomberg BusinessWeek's story 0:18:16.440 --> 0:18:19.720 Microsoft's lack of control of open Ai remains a wild card. 0:18:19.760 --> 0:18:22.960 Now coming up on the show, ouch Tiger Global's biggest 0:18:23.000 --> 0:18:26.080 venture fund, racking up an eighteen percent paper loss the 0:18:26.200 --> 0:18:28.120 end of September. We're going to bring you those details. 0:18:28.280 --> 0:18:45.240 Coming up next. This is Bloomberg Technology All right. Time 0:18:45.320 --> 0:18:47.760 for Talking Tech, And first off, Apple and paramount to 0:18:47.840 --> 0:18:51.560 reportedly in talks to bundle their streaming services at a 0:18:51.600 --> 0:18:54.600 discounted rate. The Wall Street Journal says discussions are in 0:18:54.600 --> 0:18:58.040 the early stages and some operational details are still unclear. 0:18:58.320 --> 0:19:01.680 More companies had been resorting to bundling packages to make 0:19:01.680 --> 0:19:05.640 their offerings more affordable and attractive and Meta says there's 0:19:05.640 --> 0:19:10.320 no harm done by making its artificial intelligence technology widely available. 0:19:10.400 --> 0:19:14.480 Metas chief AI scientists Sane lucun It touted the importance 0:19:14.520 --> 0:19:17.959 of sharing tech while other companies might be more protective. 0:19:18.240 --> 0:19:21.159 He spoke about advancing AI at a faster rate, saying quote, 0:19:21.200 --> 0:19:24.480 if you do this in secret, you will fall behind. 0:19:24.560 --> 0:19:28.440 Plus ex CEO Lindy Acarino sent a memo to employees 0:19:28.480 --> 0:19:31.720 showing her support of owner Elon Musk after his comments 0:19:31.720 --> 0:19:34.600 this week which insulted brands that are backed way from 0:19:34.600 --> 0:19:37.919 advertising on the platform. She called Musk candid and profound 0:19:37.960 --> 0:19:40.760 and added quote, no matter how hard they try, we 0:19:40.800 --> 0:19:44.720 will not be distracted by Sideline critics who don't understand 0:19:44.960 --> 0:19:46.240 our core mission. Karrot. 0:19:46.240 --> 0:19:48.120 I'm going to be discussing that much more a little 0:19:48.119 --> 0:19:50.280 bit later in the show, but for now, ed we 0:19:50.359 --> 0:19:53.199 want to dwell on the fact that while stocks are rallied, 0:19:53.480 --> 0:19:55.760 bonds are rallied in the month of November, not all 0:19:55.800 --> 0:19:58.400 has been that pretty for some big venture bets of late. 0:19:58.600 --> 0:20:02.000 Just take Tiger Global Management, biggest venture fund. Get this, 0:20:02.080 --> 0:20:05.400 It racked up eighteen percent loss at the end of September. 0:20:05.560 --> 0:20:09.320 That's after slashing valuations for some of the key companies. 0:20:08.840 --> 0:20:09.800 In its portfolio. 0:20:09.920 --> 0:20:12.960 Bloomberg actually learning that the fund marked down firms ranging 0:20:12.960 --> 0:20:16.120 from an AI powered email company to a privacy search 0:20:16.240 --> 0:20:18.679 engine of course tug dot Co, but most notably some 0:20:18.720 --> 0:20:22.480 of their crypto beets absolutely decimated in terms of original valuation. 0:20:23.040 --> 0:20:26.840 Of course, Tiger Global did not comment for this story, 0:20:26.840 --> 0:20:29.360 but we do get some more context from Bloomberg News 0:20:29.359 --> 0:20:32.359 Wall Street reporter Shnali Bassak. And I mean, for me 0:20:32.440 --> 0:20:36.120 what took my breath away was the Bord eight Yacht 0:20:36.119 --> 0:20:40.399 Club and open see I mean ninety percent marked down 0:20:40.440 --> 0:20:41.560 from an original valuation. 0:20:41.800 --> 0:20:44.040 I mean that kind of feats of hubris. 0:20:44.080 --> 0:20:47.120 And you remember also remember Board eight Yacht Club bought 0:20:47.119 --> 0:20:50.239 in other big investors like Arie Brogard's Lion Try and 0:20:50.280 --> 0:20:52.879 you have Philip Laflan's Co two coming into open CE 0:20:53.080 --> 0:20:55.080 as well. There was a time that open C was 0:20:55.119 --> 0:20:57.480 an IPO darling. If you remember, they had hired the 0:20:57.480 --> 0:21:01.200 former cfl Lift who then had left open C subsequently 0:21:01.240 --> 0:21:04.159 and now is working at Splunk, I believe, but remember 0:21:04.240 --> 0:21:07.000 open C I had been caught in the caught here 0:21:07.080 --> 0:21:09.840 is here of the regulatory uncertainties that would surround the 0:21:09.880 --> 0:21:13.080 rest of the investment industry in crypto, but even more 0:21:13.119 --> 0:21:17.480 so because NFTs versus token listings and other types of 0:21:17.520 --> 0:21:20.400 assets were under the ire of the SEC. So yes, 0:21:20.520 --> 0:21:23.080 a severe write down. When you look at how Tiger 0:21:23.119 --> 0:21:26.720