Speaker 1: Bloomberg Audio Studios, podcasts, radio news from.
Speaker 2: The Heart where Innovation, money and power. Collie in Silicon Valley,
Speaker 2: nbon This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3: Live from New York. This is Bloomberg Technology. Coming up.
Speaker 4: Apple is developing an AI server chip, according to reports,
Speaker 4: and it's doing it all. Broadcom details this hour, plus
Speaker 4: the valuation of SpaceX goes to new heights, reaching three
Speaker 4: hundred and fifty billion dollars after an insider deal, and Nvidia,
Speaker 4: AMD and Intel invest in a startup bringing light to chips.
Speaker 4: We sit down with the CEO later this hour, but
Speaker 4: first that's checking on these markets. And currently we are
Speaker 4: continuing to see some optimism around the NASA one hundred,
Speaker 4: one point four percent on the day crypto as well.
Speaker 4: Once again above the one hundred thousand dollars level one thousand,
Speaker 4: five hundred and thirty two is where we trade so
Speaker 4: risk on across the board. We look at some of
Speaker 4: the points contributors when you look under the hood of
Speaker 4: the NASDAT one hundred, it's interesting to once again just
Speaker 4: be seeing some of the key stocks being on the move.
Speaker 4: Of Apple, which has continued to have a very good
Speaker 4: November and into December, we see where Apple and Broadcom
Speaker 4: trade on the back of that report that Apple is
Speaker 4: indeed looking to be creating its own AI server chips
Speaker 4: designed especially for artificial intelligence, and it's working with Broadcom.
Speaker 4: This is all on the chips, networking technology, it's all
Speaker 4: being reported by the information. Will bring you so much
Speaker 4: more on that in a moment, but let's get back
Speaker 4: to the context of the markets, the GUP politics. After
Speaker 4: that Yellen interview by David Gura, Anna Rathans with US
Speaker 4: chief investment officer at cib's Investment Advisory Services, and look,
Speaker 4: we've got a risk on feel we're once again seeing
Speaker 4: nvideo on the upside, you're seeing Apple on the green
Speaker 4: alphabet on a tear.
Speaker 3: Is this the way that we should be trading it?
Speaker 1: Good morning, There's certainly a lot of excitement and AI
Speaker 1: has transformed a lot.
Speaker 3: Now the.
Speaker 1: Trouble with China and VideA happens to be on the
Speaker 1: cross here is it's not about Nvidia, it's not even
Speaker 1: about the US. It's all about China. It's a little
Speaker 1: bit of a noise. But when I say that AI
Speaker 1: has transformed, we're talking about Apple and Broadcom, Amazon is
Speaker 1: also designing its own chips. There's a lot to be
Speaker 1: excited about. So the excitement over AI is no longer
Speaker 1: really a dream as it had been twenty twenty three
Speaker 1: and twenty twenty four. Going into twenty twenty five, I
Speaker 1: think we have a lot more to look forward to.
Speaker 4: But when you've had more than one hundred percent gain
Speaker 4: in a name like in Video over course of twenty
Speaker 4: twenty four, when you've got record highs on the likes
Speaker 4: of Google Alphabet the parent company today, can you really
Speaker 4: be juicing these stocks any further on?
Speaker 1: Well, you know, so some of this is about the technames,
Speaker 1: some of it is about relative VALUEUA. Right, So the
Speaker 1: question really in our minds as asset allocators is where
Speaker 1: would assets go if we take a look at the
Speaker 1: global economy and other areas of the global markets as
Speaker 1: well as some of the old economy stock names here,
Speaker 1: even the fundamentals don't look as exciting, and they're not
Speaker 1: the ones that are driving innovation, and so it's hard
Speaker 1: to get excited about other areas.
Speaker 2: So it you know, you could see.
Speaker 1: A lot of US is still driving into tech names.
Speaker 1: The other thing, one more thing is a lot of
Speaker 1: the political changes. I mean, Lena Khan, it looks like
Speaker 1: she is out coming in as Andrew Ferguson. A lot
Speaker 1: of the hurdles that happened to be there in not
Speaker 1: only the M and A market, but tech as well,
Speaker 1: in terms of antitrust, that seems to be removed.
Speaker 3: So it's not.
Speaker 1: Necessarily about where the valuations are just for tech. It's
Speaker 1: relative valuation as well as what will the environment be like.
Speaker 4: Although the Trump announcement for DOJ has made many people
Speaker 4: worrying for Alphabet, and yet Alphabet continues to be at
Speaker 4: a record high. Are you not in any way given
Speaker 4: pause on the antitrust side of things for that particular
Speaker 4: name or others?
Speaker 1: Yeah, that particular name, I think it's well on its way.
Speaker 1: So I don't think necessarily Alphabet will fit into that film.
Speaker 5: But I'm talking about the general environment.
Speaker 1: For M and A and as well as tech. Now,
Speaker 1: you know, to your point there are it's not all
Speaker 1: you know roses here. There is this aspect of freedom
Speaker 1: of speech, and I don't know how that's going to
Speaker 1: be defined in twenty twenty five for tech, especially for
Speaker 1: social media platforms, and that remains to be seen. So
Speaker 1: it's not all roses, but certainly a lot of hurdles
Speaker 1: have been removed.
Speaker 4: What about the spreading out from the mag seven and
Speaker 4: some of these winning trump trades we think are the
Speaker 4: palanteers and the teslas of this world. Will that broaden out?
Speaker 4: We keep hearing that it'll broaden out. Is it going
Speaker 4: into other parts of the AI ecosystem energy for example?
Speaker 1: Yeah, So I think we have to see AI and
Speaker 1: other tech you know, advancements actually make it into these
Speaker 1: old economy names or even other tech names that are
Speaker 1: a little bit not not so much chip based, right,
Speaker 1: And I think we'll need to see more innovation on
Speaker 1: that and really where the rubber hits the road, how
Speaker 1: AI would actually impact these industries. And until then, it
Speaker 1: still feels like we're running on fumes here and that's
Speaker 1: probably why it hasn't broadened out yet. But we'll see
Speaker 1: in twenty twenty five if there's a difference.
Speaker 4: Yeah, you were saying that you still had this conversation
Speaker 4: by saying there's a lot to look forward to in
Speaker 4: twenty twenty five. We still wring our hands about what
Speaker 4: the killer application of general to AI is other than
Speaker 4: Gemini two point zero on my phone or the ability
Speaker 4: to have basically an analyst next to me every time
Speaker 4: I want to research. Is that in US in terms
Speaker 4: of the return on investment.
Speaker 5: I don't think.
Speaker 1: So, you know, we got a glimpse of it in
Speaker 1: twenty twenty four, where you know, all is hype about
Speaker 1: AI and how these big MAC seven companies are investing
Speaker 1: in AI. Was simply enough to get the price up.
Speaker 1: But then we started to look for ROI on them,
Speaker 1: and I think the market may be looking for a
Speaker 1: little bit more in twenty twenty five, so we're going
Speaker 1: to have to see something a little bit more concrete.
Speaker 1: But that is where I think that these tech companies
Speaker 1: are running really hard, because this is about market share,
Speaker 1: and this is about running to see who the first
Speaker 1: mover is for capturing that first mover advantage, because if
Speaker 1: they don't, they will lag behind. They know that, and
Speaker 1: so I'm looking forward to the innovation that is.
Speaker 4: To come prison's dilemma or indeed innovation focus. Anna Rathman,
Speaker 4: we thank you Ceva's Investment Advisory Services CIO. Let's just
Speaker 4: talk about some of those names we just referenced a
Speaker 4: little bit more, Tesla, Broadcom.
Speaker 3: But also Nintendo. These are just a few.
Speaker 4: Of the global stocks to watch in the coming year.
Speaker 4: It's all according to Bloomberg Busessweek. Analysts at Bloomberg Intelligence
Speaker 4: track some two thousand companies from a variety of industries,
Speaker 4: and they've identified fifty that are worth watching closely. Many
Speaker 4: of them, of course, are tech companies. Let's bring in
Speaker 4: Bloomberg's Max Chafkin, who's been pouring over all of this.
Speaker 4: Let's start with the Trump trade. We're just mentioning Palenteer there.
Speaker 4: It is up three hundred percent. Tesla has been phenomenal
Speaker 4: growth since Trump came into the administration. One of the
Speaker 4: analysts thinking.
Speaker 6: That, yeah, with both of those stocks, you have a
Speaker 6: Trump trade and sort of a general vibes AI thing
Speaker 6: going on, and.
Speaker 2: Those two things feeding into one another.
Speaker 6: So so Palenteer obviously has some AI connections as well
Speaker 6: as it's a defense contractor co founded by Peter Teel
Speaker 6: Trump is going to be president, you know, there's a
Speaker 6: case there that maybe they'll do better Tesla. Of course,
Speaker 6: Elon Musk having the ear of the President elect is
Speaker 6: a good sign. But with both of those stocks, there
Speaker 6: is a sense that they are very highly valued, perhaps
Speaker 6: relative to where their actual revenue is and what their
Speaker 6: business prospects are. You know, Palenteer is not a leading
Speaker 6: AI company. It isn't It isn't as far ahead as
Speaker 6: Google or Open Ai or something like that. Tesla talks
Speaker 6: a lot about self driving cars, but they have not
Speaker 6: sold a self driving car, so you have some challenges there.
Speaker 2: So that's the tension there.
Speaker 4: The interesting shift that we've seen is maybe a slight
Speaker 4: pullback on chip companies. A lot of the exuberants in
Speaker 4: twenty twenty three, twenty two, for has been factored in.
Speaker 4: Broadcom today gets a lift higher because we think that
Speaker 4: it's going to be working for Apple on its server
Speaker 4: AI chips according to the information. But Broadcon and micro
Speaker 4: being referenced.
Speaker 2: Yeah, yeah, Broadcom's interesting.
Speaker 6: It's one of a handful of companies that can try
Speaker 6: to compete with Nvidia. It is directly and has directly
Speaker 6: benefited from this extreme exuberance in AI. Now in the
Speaker 6: chip world, of course, it has a more direct benefit
Speaker 6: to AI. I mean they are selling you know, chips
Speaker 6: or intellectual property that is being used, whether or not
Speaker 6: chat GBT becomes.
Speaker 3: A hugely transformative thing or not.
Speaker 6: Micron's interesting because it's in the memory business, not a
Speaker 6: not a direct participant in the AI market, although it
Speaker 6: just signed this deal with the Biden administration to get
Speaker 6: a huge subsidy for a chips plant, and chip companies
Speaker 6: in general have done pretty well, so that's another one
Speaker 6: to keep an eye on.
Speaker 4: This is a global focus and so we think of
Speaker 4: content ITV being that looked at in the United Kingdom,
Speaker 4: Nintendo as well. Where else are we looking in terms
Speaker 4: of our consumer focus.
Speaker 6: Yeah, entertainment is interesting. Nin Hendo, the big story there
Speaker 6: is the switch to that's the new version of their console,
Speaker 6: which is very popular but is getting long in the tooth.
Speaker 2: Two other names I want to flag. One is Fox.
Speaker 6: You know that we've been reading a lot about the
Speaker 6: Murdoch drama. You know, Fox has actually done okay considering
Speaker 6: the you know, the general declines in TV consumption, linear
Speaker 6: TV consumption and so on. And the other one is IMAX.
Speaker 6: The losser of large screen movie theater format. Again, that's
Speaker 6: a challenging industry. Movie theaters have are going through transition.
Speaker 6: On the other hand, these James Cameron movies, the Avatar
Speaker 6: movies are bought into Imax and have been doing well.
Speaker 6: So that's something that could work in their favor nice.
Speaker 4: Chaff can Amazing how you've managed to pour through so
Speaker 4: many other stocks for us.
Speaker 3: We love it on those top fifty to.
Speaker 4: Watch Apple and Broadcom stocks on the move today after
Speaker 4: we understand that Apple is working with Broadcom to develop
Speaker 4: its own service it's designed specifically for artificial intelligence. Now,
Speaker 4: the latest report is coming from the Information Bloomberg's Mark
Speaker 4: German joins us on, Well, you've been reporting this out
Speaker 4: for a long time that Apple will be delivering AI
Speaker 4: chips of its own. The nuance here we're learning exactly
Speaker 4: who's doing it.
Speaker 5: Yeah.
Speaker 7: The interesting thing is this morning Apple announced that iOS
Speaker 7: eighteen point two, which is the latest version of iOS
Speaker 7: eighteen and with a lot of the new Apple Intelligence features,
Speaker 7: is actually going to be available today. I would anticipate
Speaker 7: it's going to be available for download around one pm
Speaker 7: Eastern ten am Pacific. And Apple Intelligence is interesting because
Speaker 7: you have a lot of models that run on the
Speaker 7: device itself.
Speaker 5: Right Those capabilities can.
Speaker 7: Actually be processed on the phone, the iPad, the Mac independently,
Speaker 7: but in some cases they need to go to the cloud.
Speaker 7: Things like writing tools, things like summarizing texts in some
Speaker 7: cases summarizing articles, and for that you need your own
Speaker 7: server infrastructure, and so for what.
Speaker 5: Apple has done is they've created tweaked.
Speaker 7: Versions of the M two ultra chip they shipped a
Speaker 7: couple of years ago, and the M four chip they've
Speaker 7: become chipping this year to actually be cloud based servers
Speaker 7: to do that AI processing. And so what this report
Speaker 7: today is saying is that there's a new generation version
Speaker 7: of that chip in development for launch about two years
Speaker 7: from now, which makes sense. They are continuing that rolled
Speaker 7: out of different chips. They need specialized chips for training data,
Speaker 7: for inferring data, for pushing data, and what Broadcom is
Speaker 7: really good at is bringing that data in and out.
Speaker 7: Apple and Broadcom have been working together for a number
Speaker 7: of years. Broadcom makes the combined Wi Fi and Bluetooth
Speaker 7: chip inside of the iPhone and some of the other
Speaker 7: Apple devices.
Speaker 5: Broadcom is continuing.
Speaker 7: To work with Apple on what are known as radio
Speaker 7: frequency filters or RAF filters, despite the shift away from
Speaker 7: paucom modems.
Speaker 5: So this is just a continuation.
Speaker 7: Of the Apple modem or the Apple Broadcom partnership, i
Speaker 7: should say, and new generations of AI servers. It shows
Speaker 7: Apple's commitment to artificial intelligence and doing as much as
Speaker 7: possible in house.
Speaker 4: It's also committed to ensuring that we can get connectivity
Speaker 4: wherever we might be. And you reported that out in
Speaker 4: terms of the Apple Watch, right and how you're going
Speaker 4: to be using satellite going forward.
Speaker 5: Yeah, this makes sense as well.
Speaker 7: Back in twenty twenty two with the iplone fourteen, Apple
Speaker 7: launched a feature called Emergency SOS over Satellite. So what
Speaker 7: that allows you to do is the first advertisement for
Speaker 7: that so eloquently showed is if you're injured or trapped
Speaker 7: on a hike or in a remote area without cellular connectivity,
Speaker 7: you could tap into a satellite network operated by Global Star. Right,
Speaker 7: you can send a text message to emergency services or
Speaker 7: file a sort of a radar or an SOS to
Speaker 7: emergency services and they'll come find you. They expanded that
Speaker 7: earlier this year with iosa team to allow text messages
Speaker 7: over satellite to any I message content.
Speaker 5: And so if you're a hiker, you need to sort
Speaker 5: of bring your iPhone with you.
Speaker 7: But they have this eight hund dollars Apple Watch all
Speaker 7: trin your towards hikers, and now they're going to update
Speaker 7: it about a year from now with its own satellite connected.
Speaker 7: Are you meaning you can leave the phone behind and
Speaker 7: still have that peace of mind being able to reach
Speaker 7: emergency services and sort of stay on the grid while
Speaker 7: you're off the grid, out of cellular range.
Speaker 4: Few Mark Gllman, great to have some time with you.
Speaker 4: Thank you, all things Apple. Meanwhile, let's shift to SpaceX
Speaker 4: and its investors have agreed to purchase a much as
Speaker 4: one point two five billion dollars of insider shares, founding
Speaker 4: the company at a cool three hundred and fifty billion dollars. So,
Speaker 4: according to an email seeing my Bloomberg plumost Katie Ruth
Speaker 4: joins us, now you've been reporting out this valuation for
Speaker 4: a while and we get confirmation, and in fact, it
Speaker 4: seems as though a lot of people didn't really want
Speaker 4: to be setting up their shares.
Speaker 3: That's right.
Speaker 8: Actually Elon Musk even tweeted a confirmation of this. So
Speaker 8: we had reported last week that you know, they were
Speaker 8: close to finalizing the three hundred and fifty billion dollars valuation,
Speaker 8: a world record for a private valuation, that has now
Speaker 8: been finalized. My colleague Laurin Gresh obtained the document confirming
Speaker 8: our scoop and yeah, it's one hundred and eighty five
Speaker 8: a share.
Speaker 4: Which is a significant optic from one hundred and twelve
Speaker 4: dollars a share that we were talking about just about
Speaker 4: a month ago. All of this optimism is allowing people
Speaker 4: who've been long term holders of SpaceX to cash out.
Speaker 3: Do we have any idea of who those.
Speaker 4: People are, because, as you say it, SpaceX has been
Speaker 4: buying back some of the shares, but not as many
Speaker 4: as they'd anticipated to be able to.
Speaker 8: Sure, so you know, it's up one hundred billion. You know,
Speaker 8: from where they were talking a month ago. There's been
Speaker 8: a surplus of demand because you know, first of all,
Speaker 8: Elon's ties to Trump up and you know, Trump's election
Speaker 8: are seen as valuable to some of these shareholders. And
Speaker 8: then also SpaceX had a successful rocket launch last month,
Speaker 8: and so both of these things contributed to the perceived value.
Speaker 3: A lot of these.
Speaker 8: Private companies aren't necessarily valued based on clear cut metrics,
Speaker 8: but just where supply meets demand, and often often it's
Speaker 8: based on a vision for the future. But yes, it's
Speaker 8: apparently they had excess. They didn't have enough sellers, and
Speaker 8: so they had to raise the price to match supply.
Speaker 4: In the band, the greatest American success is what Jared Eisigman,
Speaker 4: who's of course the NASA name. This NASA chief pick
Speaker 4: from Trump is calling SpaceX today, KG Ruth. We so
Speaker 4: appreciate it, Thank you so much. Coming up, ge even Over,
Speaker 4: CEO Scott strat Sik is going to be joining us
Speaker 4: for more on how the company is meeting the power
Speaker 4: needs required to put AI into action.
Speaker 3: This is bloembag technology.
Speaker 4: A looming problem placing the AI boom is how the
Speaker 4: new technology will be powered, and the race is on
Speaker 4: to meet that anticipated demand. One of the key players,
Speaker 4: g even Over, the company's developing new technology to provide reliable, affordable,
Speaker 4: low carbon electricity that it helps produce the sort of
Speaker 4: power that can put AI in action. Here to talk
Speaker 4: about it. Geeve and o A CEO Scots Trasik, thank
Speaker 4: you so much for being here with Chill and thanks
Speaker 4: for having me.
Speaker 3: On the back of an investment event.
Speaker 4: And you are outlining really the demand that you're going
Speaker 4: to be seeing from AI. Can you just put that
Speaker 4: into context. How much is going to be increasing the load?
Speaker 9: You bet?
Speaker 10: I mean, AI is one of manufacturers that's driving to
Speaker 10: really the first time in twenty five years, certainly in
Speaker 10: the US we're seeing real load growth. It's AI, it's
Speaker 10: the electrification of transportation, electrification of homes, but also US
Speaker 10: manufacturing are all playing roles that are really leading to
Speaker 10: a substantial increase in load growth right now. That's we're
Speaker 10: seeing in a number of our businesses. We're seeing it
Speaker 10: in substantial increase in orders for gas power right now,
Speaker 10: we're seeing it in grid infrastructure equipment, and then working
Speaker 10: with the hyperscaler is going back to that question on
Speaker 10: how we decarbonize this increased load growth that's very clearly
Speaker 10: coming this decade.
Speaker 4: So do you decarbonize? Is it all about nuclear? Is
Speaker 4: it about innovations? There you set aside what five billion
Speaker 4: dollars in terms of R and D, you bet it's.
Speaker 9: Really going to be a little bit of all the above.
Speaker 10: I mean, there's going to be a lot of decarbonization
Speaker 10: of gas over the course of the next decade. That's
Speaker 10: with hydrogen, that's with carbon capture. As an example, we
Speaker 10: have a running direct air capture plant right now that
Speaker 10: we'll be able to parlay similar technology on our gas
Speaker 10: turbines over time.
Speaker 9: Nuclear is definitely important.
Speaker 10: We have sixty five nuclear plants with our technology running
Speaker 10: today in the US, we can operate those plants in
Speaker 10: provide more electrons this decade. We also have what will
Speaker 10: be the first small modular reactor that'll get commissioned this
Speaker 10: decade in twenty twenty nine. That will become a bigger
Speaker 10: part of the hyperscale or demand cycle into the twenty thirties,
Speaker 10: and we're.
Speaker 9: Excited about that. So there's a lot of plays here.
Speaker 4: It's interesting people have been handwringing about in the last
Speaker 4: decade how much China has invested in nuclear and how
Speaker 4: the US ultimately hasn't. Yeah, have you been talking about
Speaker 4: this for a while, and now everyone's come to the
Speaker 4: same realization.
Speaker 10: All Certainly, the activities tolerated considerably in the last call
Speaker 10: it twenty four months. I mean, I remember sitting in
Speaker 10: the room at COP twenty eight in Dubai with over
Speaker 10: twenty heads of states saying we need to triple the
Speaker 10: nuclear capacity in the world between now and twenty fifty.
Speaker 10: In the sentiment towards nuclears certainly coming that way, both
Speaker 10: whether it be with business or with government. It seems
Speaker 10: like this is going to be our time for nuclear
Speaker 10: and we're excited about what we can do to help
Speaker 10: make that a reality.
Speaker 4: Is there an opportunity cost that where are people not looking?
Speaker 4: It's interesting that there's perhaps some weakness in the wind
Speaker 4: area of your business that analysts are calling out.
Speaker 10: Why that, Well, I think the wind industry at large
Speaker 10: is one that's still going through more of a maturation
Speaker 10: process in industrializing the product at scale relative to gas, relative
Speaker 10: to nuclear that just have longer legacies, stronger supply chains,
Speaker 10: stronger safety and quality cultures in those supply chains, and totality.
Speaker 9: But the reality is when you talk about.
Speaker 10: These different power generation technologies and what people are missing, frankly,
Speaker 10: it comes back to the grid because regardless of which
Speaker 10: technologies are going to power this load growth, we need
Speaker 10: to make a massive investment in the grid in the
Speaker 10: years to follow. And that's both the physical grid and
Speaker 10: how the grid thinks and works and grid software, and
Speaker 10: those are big parts of what we're investing into right now.
Speaker 4: Is that you is that alongside the government, does this
Speaker 4: have to be public private partnerships.
Speaker 10: We do stand for public private partnerships for sure. I
Speaker 10: mean these are big electrical equipment systems that have been
Speaker 10: built over one hundred years with public private partnerships playing
Speaker 10: important roles and that will continue, but a lot of
Speaker 10: the innovation needs to come from us, so we can't
Speaker 10: wait for the government. So we're investing considerably and grid
Speaker 10: software as an example.
Speaker 9: I mean, does.
Speaker 4: That impact profitability the long term? The investors, the analysts
Speaker 4: that you're invested in, were loving the long term future
Speaker 4: for margin growth, yes, but they were in the near
Speaker 4: term a little bit worried about the narrowing of the
Speaker 4: margin target is that because you are having to put
Speaker 4: money into.
Speaker 11: R and D.
Speaker 9: We are investing.
Speaker 10: We're going to grow our research and development twenty percent
Speaker 10: in twenty twenty five, and we're doing that because the
Speaker 10: market's telling us that there's real opportunity to yield a
Speaker 10: return on that investment over time. The amount of electricity
Speaker 10: that's going to be needed in the next two decades
Speaker 10: probably can only be compared to the period of time
Speaker 10: after World War Two.
Speaker 9: It's substantial.
Speaker 10: It's important for both economic growth and frankly, it's important.
Speaker 9: For stability in the world.
Speaker 10: So, yeah, we're investing into the future, but we're doing
Speaker 10: it with high confidence that we're going to yield and
Speaker 10: return on that investment.
Speaker 4: You generate about twenty five percent of the world's electricity
Speaker 4: what does the US look like compared to everywhere else
Speaker 4: where in the US.
Speaker 3: Are you having to really focus in on.
Speaker 9: It? Really isn't all the above theme right now.
Speaker 10: I mean, we're building out our manufacturing facility for gas
Speaker 10: turbines in Greenville, South Carolina. We're investing into our nuclear
Speaker 10: facility in Wilmington, North Carolina. We're also building the largest
Speaker 10: onshore wind turbine the cell and upstate New York.
Speaker 9: So really throughout the US, we're.
Speaker 10: Building stronger local manufacturing to serve a growing market, not
Speaker 10: just for the US, but candidly so that as we
Speaker 10: make these innovative investments, we can also export that technology
Speaker 10: for the world, both for economic development there but also
Speaker 10: for peace.
Speaker 4: Wow, big thoughts, Jie Vanhova, CEO, Scott Strazik.
Speaker 3: Really great to have you in.
Speaker 9: Thanks for having me.
Speaker 3: Now it's time for talking tech.
Speaker 4: First up, the chip that powers Huawei's latest flagship smartphone
Speaker 4: is not so different from the one that set off alarm.
Speaker 3: Bells in Washington a year ago.
Speaker 4: According to a device teardown done by Tech Insights and
Speaker 4: Discovery suggests Huawei is still about five years behind industry
Speaker 4: leader TSMC in terms of technology plus Swedish payments group Karnabank,
Speaker 4: has been fined forty five million dollars by the nation's
Speaker 4: financial watchdog for failing to follow anti money laundering rules,
Speaker 4: and the authority found quote significant deficiencies at the company,
Speaker 4: but Karna points out that this was routine review and
Speaker 4: was not related to actual cases of money laundering. And
Speaker 4: China's Top Markets watchdog summoned PDD executives to order the
Speaker 4: company to fix its refunds first policy, which actually allows
Speaker 4: customers to claim refunds without returning their goods.
Speaker 3: The decision comes as a growing number.
Speaker 4: Of small merchants argue the practice really hurts their bottom line.
Speaker 4: I'll come back to Blue Meg Technology and Caroline Hide
Speaker 4: in New York. Let's get you in a quick check
Speaker 4: on these markets because the NASZAQ, which is higher risk
Speaker 4: assets go higher as we get that inflationary pressure coming
Speaker 4: in as anticipated zero point three percent on the CPI
Speaker 4: print month of the month, we are currently up one
Speaker 4: point six percent, and really some of the big tech
Speaker 4: Magnificent seven names lead us higher.
Speaker 3: Go into the individual movers.
Speaker 4: We have got some record highs out there across the board,
Speaker 4: and a large part that is on Alphabet once again
Speaker 4: four straight days and gains the biggest winning four day
Speaker 4: street that we've seen since back to March twenty twenty three.
Speaker 3: Enthusiasm around the.
Speaker 4: Quantum innovation being seen with the Willow quantum chip, but
Speaker 4: add on to that Gemini two point zero being released today,
Speaker 4: innovations in AI, all of this seems very much a
Speaker 4: virtuous circle, despite those antitrust overhangs. So we're hire on
Speaker 4: Alphabet move into some of the individual stories as well
Speaker 4: on the day, and we've been looking a lot at
Speaker 4: the chip makers in the news coming out of the
Speaker 4: information really just iterating a little bit ab mock. German
Speaker 4: had already been reporting that yes, Apple is looking at
Speaker 4: AI focused server chips, and who do they turn to, Well,
Speaker 4: longtime partner Broadcom. We're up some six point three percent
Speaker 4: on the back of Broadcom. And lastly, I'm just looking
Speaker 4: at super Micro, the volatility remaining around that particular name.
Speaker 4: After of course, they did get that extension to be
Speaker 4: giving their financials to the Nasdaq by February. Let's just
Speaker 4: talk a little bit more about on the private side
Speaker 4: and the chip question a little bit more as well.
Speaker 4: Io Labs has just raised one hundred and fifty five
Speaker 4: million dollars in its latest funding round, the likes of Nvidia,
Speaker 4: AMD Ventures, Intel Capital, the three big chip companies basically
Speaker 4: using what is their next technology specializing in using light
Speaker 4: to transfer data between chips, reducing bottlenecks is hoped in
Speaker 4: AI chip technology I A Lab CEO, Mark Wade joins us.
Speaker 4: Now I just want to get the context for our viewers.
Speaker 4: What exactly is going on here? How does photons how
Speaker 4: does ultimately light help reduce the bottlenecks in chips at
Speaker 4: the moment.
Speaker 12: Yeah, well, first, Caroline, thanks for having us here. I'm
Speaker 12: excited to be here and talking with you. I think
Speaker 12: the way to think about this is everyone's familiar with
Speaker 12: and I've been tracking all the innovations coming out and
Speaker 12: exciting applications happening in AI. But the AI application has
Speaker 12: really broken the back of existing computing infrastructure. And we've
Speaker 12: seen a lot of innovation happening on the compute side.
Speaker 12: So people like in video building GPUs, and we've seen
Speaker 12: how these GPUs get deployed in huge AI data center deployments,
Speaker 12: So thousands, tens of thousands of GPUs, but you have
Speaker 12: to connect all of those GPUs together. So now we're
Speaker 12: at a point to where the bottlenecks are happening, and
Speaker 12: how you connect these GPUs together and start to drive
Speaker 12: to higher performance overall systems, driving model growth more interactive
Speaker 12: AI models, And these bottlenecks right now show up as
Speaker 12: lower performance, higher costs, and drive a lot of cost
Speaker 12: pressure in the AI application and the software level that's
Speaker 12: built on top of it. So we're really looking to
Speaker 12: bring the optical innovation to solve that interconnect bottleneck.
Speaker 4: How quickly are we talking about hearing in the next
Speaker 4: couple of years mass production?
Speaker 5: Yeah?
Speaker 2: I think you know.
Speaker 12: We're bringing a low level innovation to the high volume
Speaker 12: semiconductor world, and products in this space always take a
Speaker 12: few years to get to high volume. In the product
Speaker 12: cycles are a few years long. So the way to
Speaker 12: think about where we're at right now and what differentiates
Speaker 12: us is we have a chip that we ship today.
Speaker 12: So it's an optical chip. It's got one hundred million
Speaker 12: transistors on it, it's got thousands of optical devices. Now
Speaker 12: we've really brought a level of integration and performance that's
Speaker 12: never been seen before. But we're shipping in the tens
Speaker 12: of thousands of units whereas the market demand is tens
Speaker 12: of millions. So the work that we still have to
Speaker 12: do over the next few years, along with our partners
Speaker 12: in our strategic investors, so in Nvidia, AMD, Intel, but
Speaker 12: also very importantly the high volume simas manufacturers, Global Foundries, TSMC,
Speaker 12: Intel Foundry working on bringing this forward and scaling it
Speaker 12: a thousand x in the next few years. So think
Speaker 12: of this as still a couple of years away.
Speaker 3: Mark, who are you currently shipping to? In what form?
Speaker 3: Is it already been used?
Speaker 12: Yeah, so we're shipping across a number of the customers
Speaker 12: that we strategically work with, and how they're using it
Speaker 12: right now is one making sure that the core technology works.
Speaker 12: So we've invented a new technology, and so before you
Speaker 12: commit to deploying that in high volume, you have to
Speaker 12: kick the tires and say, okay, there's some new elements here,
Speaker 12: there's innovation that we've done. Does it actually work, how's
Speaker 12: it yielding, how's it behaving in terms of reliability? And
Speaker 12: so a lot of our customers are consuming these thousands
Speaker 12: and tens of thousands of parts to really prove out
Speaker 12: that this technology is poised to scale into the millions.
Speaker 2: So that's how people are using it today.
Speaker 4: When you think about Nvidia, AMD, Intel, all of them
Speaker 4: fierce frenemies in some ways work with each other, but
Speaker 4: in many ways work to compete. They're willing to all
Speaker 4: work very equally to get access to your technology.
Speaker 2: Yeah, I think the way to think about.
Speaker 12: This is everyone's realizing that a transition towards a new
Speaker 12: scale of optical technologies and optical products, it's very important
Speaker 12: for all of their future deployments in products. So we've
Speaker 12: always viewed this and what we're doing as a broadly
Speaker 12: deployed and ubiquitous technology.
Speaker 2: So, yes, you're right.
Speaker 12: This mac conductor world is notorious for frenemy engagements. You know,
Speaker 12: your suppliers, your partners. Sometimes you're competing. I think that's
Speaker 12: just how this world works, and ultimately it rewards those
Speaker 12: who innovate generation after generation. And we're on the forefront
Speaker 12: of bringing optical innovation and optical products to the broad market.
Speaker 12: So that's how we view it, and we see our
Speaker 12: partners really working closely and well with us to realize
Speaker 12: that vision.
Speaker 3: It came out of academia. MIT Lab was where a
Speaker 3: lot of this was born.
Speaker 4: Mark, what about the profitability the business model for you
Speaker 4: and what layer are you getting paid?
Speaker 5: Great question.
Speaker 12: Part of the innovation here is that we're bringing the
Speaker 12: power of fabulous semiconductor design, which has done phenomenally well
Speaker 12: in the world of SEAMAS and Electronics and companies Liken, Vidia, AMD,
Speaker 12: but we're bringing a photonic element to that. So we
Speaker 12: get paid at the chip level. So we ship a
Speaker 12: known good optical IoT chiplet so it's a silicon ship
Speaker 12: that we ship to our customers and they integrate that
Speaker 12: chip into their multi chip packages GPUs, CPUs in the
Speaker 12: future switches memory interfaces. So this really becomes a ubiquitous,
Speaker 12: largely deployed kind of proliferation of optical technologies, and we.
Speaker 4: Sell it chip At the moment, who makes those chips
Speaker 4: is Global Foundries, Intel, and you're talking to TSMC.
Speaker 3: Will we just see all of those.
Speaker 4: Three be the ones that bring you to mass production
Speaker 4: by twenty twenty six.
Speaker 2: That's right.
Speaker 12: I think the other thing to latch onto here is
Speaker 12: that the high volume, leading edge foundries are getting involved.
Speaker 12: So Global Foundries, Intel, Foundries, TSMC, they've all made public
Speaker 12: statements about what they're doing in photonics, and we're working
Speaker 12: closely with all of them, and we're excited about how
Speaker 12: this is coming together. And yes, we need that scale
Speaker 12: of manufacturing to deliver to the tens and hundreds of
Speaker 12: millions of units that the market is demanding a few
Speaker 12: years in the future.
Speaker 4: I allowed CEO Mark Wade, really appreciate your time on
Speaker 4: the funding round. Meanwhile, just shift our attention to GM
Speaker 4: shutting down its Cruise Robotaxi division, setting high development costs
Speaker 4: and reputational risks. GM will merge crews into its operations,
Speaker 4: focusing on developing advanced safety systems and offering autonomous driving
Speaker 4: as a.
Speaker 3: Feature of future models.
Speaker 4: The company says the decision will save the company over
Speaker 4: a billion dollars in annual costs coming up was in
Speaker 4: store for the ibo market heading into twenty twenty five?
Speaker 4: Wesley Chants with US co founder and managing partner at
Speaker 4: FPV Ventures.
Speaker 3: This is Bloomberg Technology.
Speaker 4: After potential IPO filings from companies like Klana, like Service Titan,
Speaker 4: what's the outlook for tech IPOs heading into the next year.
Speaker 4: How long will these AI valuations remain so heavy? Wesley
Speaker 4: chan is with US co founder and managing partner at
Speaker 4: fpvv Eventures. We've got a lot of thoughts on both
Speaker 4: sides of the equation. We are getting excited for potentially
Speaker 4: IPOs to reopen, particularly as we see a new administration.
Speaker 3: Everyone's talking about more pro business. Is that going to happen?
Speaker 2: I think so.
Speaker 13: I mean, everybody's very excited about twenty twenty five, especially
Speaker 13: going to twenty twenty six. If more interest rates fall,
Speaker 13: you'll see a lot of people pump more money in
Speaker 13: the markets and you might have a wonderful season of IPOs.
Speaker 13: We're still waiting it out right now. It hasn't happened.
Speaker 13: You know, Service Titan has filed. We're hoping in fingers crossed,
Speaker 13: so that does really well, and you know, I think that
Speaker 13: will open up the doors for more people to want
Speaker 13: to come out into the market.
Speaker 4: There's been some bit of pills to swallow on the progress.
Speaker 4: For example, a Klana in the heady days of twenty
Speaker 4: twenty one, the valuation is much different, but it has
Speaker 4: improved from recent years. What does that speak to in
Speaker 4: terms of where the valuations will lie when we come
Speaker 4: to the public market.
Speaker 2: They'll still be down from the last couple of years.
Speaker 13: So you have to remember that we had zero interest rates,
Speaker 13: so people had an outrageous amount of money in the markets.
Speaker 13: With the pandemic and the stimulus, people just pumped money
Speaker 13: in the IPOs as.
Speaker 2: If it was everything was great.
Speaker 13: And I think what you'll see in the next couple
Speaker 13: of years is only the best companies will sort of
Speaker 13: come out at the beginning, and that those best companies
Speaker 13: will get valuations that are are reflective of their being
Speaker 13: unique and being exceptional.
Speaker 4: And those best companies always going to have to be
Speaker 4: generative AI adjacent RD you know, I hope.
Speaker 2: Not right Like you know, I think there are a
Speaker 2: lot of great companies that are waiting.
Speaker 13: I'm I've been involved with Canada for almost for almost
Speaker 13: eleven years, and they do use some AI as part
Speaker 13: of their product offering. But you know, Canvas started out
Speaker 13: as a tool for everybody to use to be pro
Speaker 13: to be more productive, and you know, nobody sees them
Speaker 13: as an AI company quite yet. And you know, everybody
Speaker 13: talking about their possibility of IPO in the next couple
Speaker 13: of years. So you'll see a lot of great companies
Speaker 13: come out.
Speaker 4: Will they all come out in the United States? If
Speaker 4: indeed they are that. We're seeing Indian listings, for example,
Speaker 4: pick up for local companies or is it all about
Speaker 4: coming to the US.
Speaker 13: I think if you're a founder, no matter where in
Speaker 13: the world, do you or you know a lot of
Speaker 13: them tell me it's through dream to IPO in the US,
Speaker 13: so you know you'll see the best ones IPO here.
Speaker 13: That's where all the capital is and where people are
Speaker 13: excited about having their listenings.
Speaker 3: People are exuberant.
Speaker 4: They're also about M and A picking up. I mean,
Speaker 4: many would say there's still limitations on the Magnificent seven
Speaker 4: to really make too many acquisitions. But is that going
Speaker 4: to be a more furtive area of exit at least?
Speaker 13: I hope so, but I'm skeptical of it. We have
Speaker 13: a couple issues with M and A. The first being
Speaker 13: that you know, a lot a lot of it was blocked.
Speaker 13: You know you saw this morning. Then we had another
Speaker 13: one that was kind of blocked on this Kroger Albertson's one.
Speaker 13: We might have a new administration, we might have a
Speaker 13: new FTC that will be more more lenient towards allowing
Speaker 13: some of these m and as through, But right now
Speaker 13: it's the M and A market is for most part
Speaker 13: shut down, especially for folks and tech companies.
Speaker 4: So where are you seeing for example, a lot of
Speaker 4: the activity when you're all trying to get into deals,
Speaker 4: is it that you're writing still the initial checks? How
Speaker 4: much you've been tempted by some of these secondary market activities.
Speaker 4: It seemed to be the area of giving certainly investors
Speaker 4: and employees liquidity.
Speaker 13: You know, there's a lot of activity helpening happening there,
Speaker 13: but my taste has always been either first check in
Speaker 13: or on the series A and not doing these secondaries.
Speaker 13: That's where you spot these founders was amazing talent, and
Speaker 13: they'll probably go to IPO if they achieve what they want.
Speaker 2: Google went to IPO.
Speaker 13: I was there as a very early employee, and I
Speaker 13: watched that reopen the public markets in two thousand and four.
Speaker 2: And you know, you have one great or two.
Speaker 13: Great or three great companies IPO and the market will
Speaker 13: start blooming again. We sought first then well Google when
Speaker 13: things were shut down after Enron and after the first
Speaker 13: recession in.
Speaker 2: The dot com bust.
Speaker 13: So you know, the history doesn't quite repeat itself. But
Speaker 13: boy doesn't rhyme a lot does rhyme?
Speaker 4: Does the never ending wall of money going towards general
Speaker 4: to AI startups continue.
Speaker 2: We're already seeing it stop a little bit right.
Speaker 13: You know, there were a lot of it E been
Speaker 13: flows and with a lot of general of AI startups
Speaker 13: that were doing video models or doing you know, the
Speaker 13: first stage. A lot of them can't raise money anymore.
Speaker 13: You know, they're calling companies I can and saying, please
Speaker 13: acquire us.
Speaker 2: We're just out of cash. So I think I think
Speaker 2: you're going.
Speaker 13: To see that first wave start, you know, start start
Speaker 13: seeing their bubble pop, and then you'll see a second
Speaker 13: wave of applications. The ones that are changing how legal
Speaker 13: is done, changing how insurance is done, changing how insurance
Speaker 13: underwriting serve occurs, start to become very popular, and I
Speaker 13: think those will have some value. We saw this in
Speaker 13: mobile firsthand. Like you know, a lot of the companies
Speaker 13: that were doing mobile infrastructure all went could put you know,
Speaker 13: very very quickly, or they got bought as acquisitive M
Speaker 13: and A by Google or Apple. And what you'll see
Speaker 13: is companies like Jena that are the incumbents in jenai,
Speaker 13: whether it's Google or Microsoft or open Ai which is
Speaker 13: entirely almost funded by Microsoft, sort of keep the line
Speaker 13: share because they have access to all the compute power.
Speaker 3: You see, it's got a lot of money, as we said,
Speaker 3: But what you'll.
Speaker 2: See is a lot of the application layers.
Speaker 13: Just like how Uber and Airbnb became the application companies
Speaker 13: for mobile, the application companies for Jenai will start becoming
Speaker 13: very popular and have a lot of value in this
Speaker 13: could put moment.
Speaker 4: Then there are a lot of zombies out there who
Speaker 4: are still clinging to unicorn valuations, but no one's quite
Speaker 4: ready to rip up the script and mark it down.
Speaker 3: When did these comput moments actually happen?
Speaker 13: When they run out of cat We saw this first
Speaker 13: end of the dot com bust, right, A lot of companies
Speaker 13: had these crazy unicorn valuations because the market was unlimited
Speaker 13: and all of a sudden and one fell swoop after
Speaker 13: there was that big recession, the dot com bust happened,
Speaker 13: and all these companies almost in like a couple month period.
Speaker 13: When when could put overnight? And I think we'll see
Speaker 13: this with some of the Genai companies. The market will
Speaker 13: just say we don't have money for you for funding.
Speaker 13: They won't have a profitable business model, just like how
Speaker 13: although the e commerce companies never made a dime, they
Speaker 13: lost money in every transaction.
Speaker 2: You'll see that business models.
Speaker 13: Risks sort of play out and then all of a sudden,
Speaker 13: with no more cash being able to raise and the
Speaker 13: money being burned, they'll have.
Speaker 2: To close the doors.
Speaker 4: Where in the generator of AI stack are you talking
Speaker 4: about the application layer here rather than the foundational I think.
Speaker 13: It's between the foundational models. Those folks have lots of funding,
Speaker 13: they have incumbents, unlimited compute power. You have the applications
Speaker 13: that are taking advantage of some of the new features
Speaker 13: and the new launches that are happening in the gen model,
Speaker 13: in the foundational models.
Speaker 2: But there are a lot of companies in.
Speaker 13: Between that we're using some of these models to do
Speaker 13: better videos or better writing tools. That's where you're going
Speaker 13: to see a lot of a lot of wreckage.
Speaker 4: Nicely, it's always great to get you straight to a
Speaker 4: on the show. As a chan co founder and managing
Speaker 4: partner at FPV Ventures when they look ahead for twenty
Speaker 4: twenty five.
Speaker 3: Of course, Worsley used to work at Google.
Speaker 4: Let's talk about Google for a moment, because it's debuted
Speaker 4: a new version of its flagship AI model, Gemini two
Speaker 4: point zero, saying it is twice as fast as its
Speaker 4: previous version and will power virtual agents that assist users
Speaker 4: then the new model can generate images and audio across languages,
Speaker 4: can assist during Google searches and coding projects. Meanwhile, Adobe
Speaker 4: also rolling out new features, this one it's Ai video product.
Speaker 4: Much more slowly though than open AI's rival Sara service,
Speaker 4: it's been.
Speaker 3: Fueling concerns that it's falling behind.
Speaker 4: The company announced the tool two months ago and it
Speaker 4: remains in limited testing, only accessible by a handful of creators. Meanwhile,
Speaker 4: Sora made available to a wide audience just this week.
Speaker 4: We await Adobe's numbers after the bout. We have a
Speaker 4: new intra day record being hit for Tesla. Keep an
Speaker 4: eye on the stock. We're currently up to two point
Speaker 4: seven seven percent, but at one point we're gaining three
Speaker 4: and a half percent to hit the first interday record
Speaker 4: since twenty twenty one.
Speaker 3: The enthusiasm around.
Speaker 4: Tesla, of course, since the new President elect Trump was
Speaker 4: announced in early November, being priced in. Meanwhile, let's shift
Speaker 4: our gear is to TikTok, another one to focus in
Speaker 4: the Trump administration. It's currently offering users hundreds of dollars
Speaker 4: to spend time in the app, invite friends to join
Speaker 4: and purchase products on TikTok shop. This is all part
Speaker 4: of an effort to expand the business as quickly as possible,
Speaker 4: ahead of course, a possible ban in the United States.
Speaker 4: Bombergs Alexandra Levine brings us this story quite extraordinary, some
Speaker 4: of the ways they're enticing new users.
Speaker 14: I haven't seen this particular one before, and I think
Speaker 14: what's so interesting is you know they've already have They
Speaker 14: already have one hundred and one hundred and seventy million
Speaker 14: Americans using the app. That is more than half the
Speaker 14: American population. It is more Americans than voted in our
Speaker 14: last election. And this shows that they are still trying
Speaker 14: to get more, as you said, to just really maximize
Speaker 14: before this potential band goes into effect in just over
Speaker 14: a month.
Speaker 3: So what is the idea? More people?
Speaker 4: More the one hundred and seventy million that already use
Speaker 4: it will be a bigger outcry if indeed we are
Speaker 4: going to see it banned or if they choose not
Speaker 4: to divest from White Dance.
Speaker 14: Absolutely, the thought is that it's best to just do
Speaker 14: as much as they can and grab as much as
Speaker 14: they can to both increase the value of the company
Speaker 14: and also to make the app more deeply entrenched in
Speaker 14: the American Americans everyday life than in the American economy
Speaker 14: before this potentially comes to pass. And so what you're
Speaker 14: seeing in this offer now when folks are opening up
Speaker 14: the app is that they are being offered up to
Speaker 14: three hundred and fifty dollars basically to spend in cash
Speaker 14: rewards on TikTok Shop, which is still one of the
Speaker 14: biggest bets for the company and one of the areas
Speaker 14: where they are trying to invest the most.
Speaker 4: And they're expanding in Europe as well, anasms in Spain
Speaker 4: and Ireland.
Speaker 3: But how well is it doing?
Speaker 4: Do we have any sense of how many people have
Speaker 4: been using TikTok Shop in the US.
Speaker 14: So we know that TikTok Shop is why be popular here.
Speaker 14: We know that TikTok or Bye Dance, its parent company,
Speaker 14: had aimed to get users to spend seventeen point five
Speaker 14: billion dollars on the app this year. We know that
Speaker 14: they just had triple the Black Friday sales this year
Speaker 14: that they had last year, So we know that they're
Speaker 14: doing very well as far as outside the US. It
Speaker 14: just launched yesterday in Spain, so it's a little bit newer.
Speaker 14: But I think what we can say looking at the
Speaker 14: US numbers is that all of the regulatory scrutiny really
Speaker 14: hasn't done much to dampen interest in the e commerce
Speaker 14: armer of the platform.
Speaker 4: Throwing everything trying to gain those the US uses Alexandra Levine,
Speaker 4: thank you so much.
Speaker 3: In San Francisco.
Speaker 4: Sticking with shopping paid product reviews online, which merchants can
Speaker 4: use to gain a competitive edge, they're under increasing scrutiny.
Speaker 4: First it was a government camp down by the FTC
Speaker 4: back in August. Now Amazon itself is asking online shoppers
Speaker 4: to provide information about product testimonials that they've posted on
Speaker 4: TikTok or YouTube or Instagram. Pooemberg Spencer SOPA has done
Speaker 4: the deep dive here and what Amazon is basically under
Speaker 4: pressure to really work out who's shouldn't be paying such influence.
Speaker 11: Yeah, the interesting thing here is that they're looking beyond Amazon.
Speaker 11: You know, Amazon for years has tried to clamp down
Speaker 11: on fake reviews. They've looked at scams where people were
Speaker 11: maybe like taking payments on PayPal and exchange for reviews
Speaker 11: on Amazon. And what's happening now is they're actually reaching
Speaker 11: out to people who've posted reviews on Amazon and asking, hey,
Speaker 11: what kind of relationship do you have with this brand
Speaker 11: or this product? What kind of videos are you posting
Speaker 11: on other sites like TikTok and YouTube and Instagram. And
Speaker 11: that's the interesting development here is Amazon looking beyond its
Speaker 11: own platform for signs of this kind of review abuse.
Speaker 4: And what is the come upons from the abuse and
Speaker 4: to whom.
Speaker 2: That's a really good question.
Speaker 11: We know that the FTC is looking to clamp down
Speaker 11: on this, and they're saying they can go, you know,
Speaker 11: pursue civil penalties. That rule just took effect earlier this year.
Speaker 11: And then that's where like Amazon is still unclear exactly
Speaker 11: where it fits in. If they turn a blind eye
Speaker 11: to it, that would be difficult for them. I think
Speaker 11: they have to show that they have some sort of
Speaker 11: proactive mechanisms to try to wead these things out to
Speaker 11: avoid culpability, and then you know, maybe help the FTC
Speaker 11: go to another target, which could be the actual review
Speaker 11: writer and the brand that's in collusion.
Speaker 2: But then the other aspect of.
Speaker 11: This is just that it's reaching beyond its site, is
Speaker 11: just kind of sending a message like be careful about
Speaker 11: those campaigns you run on TikTok or YouTube, trying to
Speaker 11: sell your Amazon products and bring maybe bring some of
Speaker 11: that back to Amazon where they prefer to have it.
Speaker 4: Yeah, because advertising has been a really strong line of
Speaker 4: growth for them.
Speaker 11: Yis exactly, and it's never Amazon has never been very
Speaker 11: good at discovery. So a problem for them has been
Speaker 11: that brands, if they want to be discovered, they try
Speaker 11: to get discovery discovered on TikTok and YouTube where people
Speaker 11: kind of are noodling around. Amazon's always been a place
Speaker 11: to spearfish, and so this is this a way for
Speaker 11: Amazon to maybe send a warning sign against those kind
Speaker 11: of campaigns with influencers on other platforms.
Speaker 4: Spencer SOPA figing in on those influencers.
Speaker 3: We appreciate it. Thanks so much. Now, let's just check
Speaker 3: in on what.
Speaker 4: Has been a key story, a key move in the
Speaker 4: market today Broadcom from a points perspective, really adding to
Speaker 4: the S and P and the Nasdaq one hundred more
Speaker 4: broadly today it's about five point six percent. Why because well,
Speaker 4: the report's coming out of the information which basically build
Speaker 4: on the reporting from our own Mark German that Apple
Speaker 4: is all in on building its own AI specific server chips.
Speaker 3: Who are they using to do that with Broadcom.
Speaker 4: Up five and a half percent, so we see some
Speaker 4: big moves, some record highs across the board as well.
Speaker 3: Keep a close eye on the likes of.
Speaker 4: Google Today, Alphabet the parent company, and a new record
Speaker 4: high so to is Amazon. We're just discussing with Spencer Sopa.
Speaker 4: That does it for this edition of Blueberg Technology. Do
Speaker 4: not forget to check out the podcast. Find it on
Speaker 4: the terminal as well as online on Apple, Spotify, and
Speaker 4: iHeart This is Blueberg