WEBVTT - Apple Chooses Alibaba For China AI, Elon Musk Continues OpenAI Feud 0:00:02.520 --> 0:00:09.720 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.800 --> 0:00:15.520 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.960 --> 0:00:42.960 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.760 --> 0:00:37.000 Live from New York. Come Caroline Hyde and. 0:00:36.960 --> 0:00:38.680 I'm Jackie Devalas in San Francisco. 0:00:38.880 --> 0:00:40.800 This is Bloomberg Technology. Coming up. 0:00:40.840 --> 0:00:45.080 Apple's iPhones will use Ali Baba's AI technology or the 0:00:45.080 --> 0:00:49.200 partnership help Apple revive iPhone sales in China. Plus Reddit 0:00:49.320 --> 0:00:52.680 shares fool as user growth underwhelms. We talk with the 0:00:52.720 --> 0:00:55.160 COO about Google's algorithm. 0:00:54.680 --> 0:00:56.800 And its in house AI and. 0:00:56.800 --> 0:00:58.560 The feud between Elon Musk and Open Ai. 0:00:58.640 --> 0:01:00.480 It continues with Musk saying he. 0:01:00.400 --> 0:01:04.000 Would drop his bid for the startup if it halts 0:01:04.080 --> 0:01:07.759 its for profit restructuring. Drip feed News This coming as 0:01:07.800 --> 0:01:10.520 reports that yes, Ali Baba is going to be lending 0:01:10.560 --> 0:01:13.400 it's AI general to AI technology for Apple. 0:01:13.160 --> 0:01:16.040 Intelligence in China, crucial in terms. 0:01:15.800 --> 0:01:18.080 Of market share for this all important geography. 0:01:18.319 --> 0:01:19.720 But will it remain exclusive? 0:01:20.000 --> 0:01:22.280 There is so much to talk with Bloomberg's round Vastelica 0:01:22.360 --> 0:01:24.800 about it, about the importance of China. But this is 0:01:24.920 --> 0:01:28.360 Josi for was the chairman of Ali Baba, confirming previous 0:01:28.400 --> 0:01:31.800 reporting out there that Apple is getting its first general 0:01:31.840 --> 0:01:33.160 to AI partnership in China. 0:01:35.080 --> 0:01:37.360 Hey, thanks for having me, So this is a big development. 0:01:37.920 --> 0:01:40.600 China is obviously a major market for Apple. I think 0:01:40.600 --> 0:01:43.399 they got about seventeen percent of their revenue from the 0:01:43.440 --> 0:01:46.759 Greater China region in their most recent fiscal year. They 0:01:46.800 --> 0:01:48.440 have been seeing a little bit of struggle there in 0:01:48.520 --> 0:01:52.120 terms of sales. They're seeing increased competition from companies like Huawei. 0:01:52.400 --> 0:01:54.400 So the idea that they can get sort of really 0:01:54.440 --> 0:01:57.440 strong AI features onto devices there in China, that has 0:01:57.440 --> 0:01:59.520 seen as a real opportunity for them to kind of 0:02:00.040 --> 0:02:02.720 prove their fortunes there and that would help with overall growth, 0:02:02.720 --> 0:02:04.720 which is something that investors have been looking for for 0:02:05.040 --> 0:02:05.600 quite a while. 0:02:06.640 --> 0:02:09.760 Talk to us about some of the mechanics behind the manufacturing. 0:02:09.840 --> 0:02:13.280 I'm talking about the tariff risk. How are investors thinking 0:02:13.320 --> 0:02:16.359 about this potential risk as it relates to Apple. 0:02:17.919 --> 0:02:21.480 So Apple's really in sort of the crosshairs here because 0:02:21.480 --> 0:02:24.120 it does have such a major manufacturing hub out of 0:02:24.280 --> 0:02:26.799 China that we have seen tariff levy I think was 0:02:26.840 --> 0:02:30.079 tim percent tariffs China retaliated. It also has some kind 0:02:30.120 --> 0:02:33.119 of probe looking at Apple app store policy. So there's 0:02:33.120 --> 0:02:35.519 certainly a lot of questions here. We don't know how 0:02:35.560 --> 0:02:37.480 long tariffs might be in place for. We don't know 0:02:37.520 --> 0:02:39.400 if there's going to be an escalation. We don't know 0:02:39.440 --> 0:02:41.280 if Apple might get some kind of exemption the way 0:02:41.280 --> 0:02:43.280 it did during the first Trump term. So far, it 0:02:43.280 --> 0:02:46.240 seems like people aren't seen too significant an impact to 0:02:46.360 --> 0:02:48.600 earnings from this. But this is something that could clearly 0:02:49.120 --> 0:02:51.680 escalate and become a much bigger issue very quickly. 0:02:52.400 --> 0:02:55.120 And certainly we've seen the ramifications on the stock price 0:02:55.200 --> 0:02:59.120 from investigations coming from China from a regulatory perspective, and 0:02:59.200 --> 0:03:00.920 certainly Germany also looking into it. 0:03:00.960 --> 0:03:03.680 On the day as well. Ryan point us forward. 0:03:03.400 --> 0:03:06.160 From how this baks into evaluation and Apple, as we say, 0:03:06.160 --> 0:03:08.720 over the last five days, we're up two point seven percent. 0:03:09.840 --> 0:03:11.600 Yeah, recent performance has been pretty good. 0:03:11.680 --> 0:03:12.120 Overall. 0:03:12.160 --> 0:03:14.800 It has been an underperformer this year because of the 0:03:14.840 --> 0:03:18.639 early concerns about how strong iPhone sixteen demand was, and 0:03:18.680 --> 0:03:21.640 you know, the overall kind of geopolitical environments. You know, 0:03:21.760 --> 0:03:24.440 the stock does have a pretty high multiple given the 0:03:24.480 --> 0:03:26.280 fact that the growth is not what you're seeing in 0:03:26.280 --> 0:03:28.880 some of the other mag seven names. But people do 0:03:28.960 --> 0:03:31.440 consider it a pretty defensive and sort of safe haven 0:03:31.520 --> 0:03:34.040 kind of company, just because it's cash flow is enormous. 0:03:34.160 --> 0:03:37.360 It spends billions of dollars on buybacks. It hasn't been 0:03:37.400 --> 0:03:39.839 planning a ton of capbex into AI, which has become 0:03:39.840 --> 0:03:41.839 a concern for some of the other stocks. So there's 0:03:41.840 --> 0:03:45.400 certainly still reasons to recommend it, you know, services growth. 0:03:45.480 --> 0:03:47.840 You can kind of go down a list of issues 0:03:47.880 --> 0:03:50.000 like that, but do you think overall, I mean, people 0:03:50.040 --> 0:03:52.600 have been looking for a more pronounced growth inflection from 0:03:52.640 --> 0:03:54.800 the company, and when you have all these concerns about 0:03:55.080 --> 0:03:57.040 tariffs and China and so forth like that, that does 0:03:57.120 --> 0:03:58.920 make that a little bit harder in the near term. 0:04:00.040 --> 0:04:03.760 Bloomberg's Ryan West delica, thanks for joining us. Meanwhile, shares 0:04:03.760 --> 0:04:05.920 of Intel are rising and on track for its biggest 0:04:05.960 --> 0:04:08.320 one week jump in twenty five years. 0:04:08.600 --> 0:04:10.480 This as a report from Baar says. 0:04:10.240 --> 0:04:12.760 That the company could be in talks to work with 0:04:12.800 --> 0:04:16.880 a TSMC on a potential project for more. Bloomberg's Ian 0:04:17.000 --> 0:04:20.200 King joins us now Ian Intel has had a turbulent 0:04:20.360 --> 0:04:25.479 couple months. It's CEO being ousted. How much does Intel 0:04:25.560 --> 0:04:26.960 need a project like this. 0:04:27.480 --> 0:04:29.680 I think in general, we've seen the stock go up 0:04:29.720 --> 0:04:32.120 over the last few days. There's been a lot of speculation. 0:04:33.000 --> 0:04:36.880 What investors want is something to happen from the outside 0:04:36.920 --> 0:04:39.640 that could help Intel, because they've seen over the last 0:04:39.680 --> 0:04:41.600 couple of years that it really hasn't been able to 0:04:41.680 --> 0:04:44.600 change the direction of its fortunes. So, whether it's JD. 0:04:44.760 --> 0:04:48.000 Van's talking in Europe about hey, we need to do 0:04:48.040 --> 0:04:52.040 a made in America, whether it's speculation in Asia about 0:04:52.120 --> 0:04:55.320 it potentially getting help from partner, from partners who are 0:04:55.320 --> 0:04:58.200 currently competitors and less as are just looking for something, 0:04:58.240 --> 0:04:59.960 you know, give me a sign, give me a spark. 0:05:00.640 --> 0:05:03.480 Talking of spark and signs coming at the moment from Apple, 0:05:03.520 --> 0:05:05.039 I just want to return to some breaking news to 0:05:05.160 --> 0:05:08.880 Tim Cook is indeed posting about the next member of 0:05:08.920 --> 0:05:11.880 the Apple family coming on February the nineteenth. Throughout one 0:05:11.880 --> 0:05:15.080 point two percent. Much has been reported about the latest 0:05:15.240 --> 0:05:18.760 cheaper se revamp coming from our own Mark German previously, 0:05:19.000 --> 0:05:21.000 but at the moment, all the statement coming from Tim 0:05:21.040 --> 0:05:24.039 Cook is we are awaiting the newest member of the 0:05:24.080 --> 0:05:27.440 family of Apple. And you go to the ex post 0:05:27.480 --> 0:05:29.480 from Tim Cook, the CEO of that business. 0:05:29.880 --> 0:05:31.080 In sticking more with. 0:05:31.160 --> 0:05:35.560 What's occurring on the manufacturing side of things and what's happening. 0:05:35.200 --> 0:05:38.520 With Intel, we know that maybe they'll look at. 0:05:38.520 --> 0:05:42.040 Outsourcing manufacturing doing deals with TSMC, But more broadly, how 0:05:42.080 --> 0:05:44.440 in line with this is what pat originally wanted or 0:05:44.480 --> 0:05:47.279 how much of is a distinction from previous leadership. 0:05:48.080 --> 0:05:50.520 Yeah, I think it's we have to be careful here 0:05:50.560 --> 0:05:53.800 to point to there being a lot of speculation. We 0:05:53.839 --> 0:05:57.000 don't actually know the much is happening right now. What 0:05:57.040 --> 0:06:00.159 we really need is big customers. If they get the 0:06:00.160 --> 0:06:03.840 big customers with huge orders that give them a lot 0:06:03.839 --> 0:06:06.600 of volume to fill those factories, then the plan is on. 0:06:06.800 --> 0:06:09.600 Then what Gelsinger tried to put in place is actually 0:06:09.640 --> 0:06:13.880 paying off. Until we see, you know, Apple or Nvidia 0:06:14.000 --> 0:06:16.599 or somebody else like that putting lots and lots of 0:06:16.640 --> 0:06:21.520 chips into Intel's factories, the plan is not really going anywhere. 0:06:22.040 --> 0:06:24.560 In King and all things Intel, which might say, has 0:06:24.600 --> 0:06:26.880 been on quite the crescendo in the last three weeks 0:06:26.920 --> 0:06:29.159 in terms of its share price. Let's give to Nooon 0:06:29.200 --> 0:06:32.320 breaking News SpaceX. We understand in South Africa the talks 0:06:32.320 --> 0:06:36.920 are stalling over tensions with Elon Musk and with President Trump, 0:06:37.200 --> 0:06:41.560 SpaceX and South Africa. The negotiators intend to restart talks later. 0:06:41.640 --> 0:06:45.800 This all about space X's adoption and its satellite use 0:06:46.080 --> 0:06:47.000 in South Africa. 0:06:47.040 --> 0:06:48.680 Will have more on that as and when we get it. 0:06:48.680 --> 0:06:51.320 But coming up, we'll be joined by Reddit COO Gen 0:06:51.400 --> 0:06:53.920 Wong to break down the company's earnings. That's coming next. 0:06:54.000 --> 0:07:17.280 This is bloom meg Technology. Just look at Reddit right 0:07:17.320 --> 0:07:20.480 now shares our dam that's after fourth quarter user growth 0:07:20.760 --> 0:07:24.160 missed Wall Streets expectations that we're having in the worst days. 0:07:24.160 --> 0:07:27.320 It's November, the twenty second Reddit itself saying user growth 0:07:27.360 --> 0:07:30.000 was indeed impacted last quarter after Google made a change 0:07:30.000 --> 0:07:33.640 to its algorithm that impacted search traffic. Let's begin. Reddit 0:07:33.720 --> 0:07:36.880 COEO Gen Wong joins us now and just talk to 0:07:37.000 --> 0:07:41.080 us about how this quarter is currently looking in terms 0:07:41.080 --> 0:07:45.000 of the reaction to Google's overall algorithm change and how 0:07:45.040 --> 0:07:47.720 you drive your own fortunes when it comes to the 0:07:47.800 --> 0:07:48.560 use and adoption. 0:07:48.600 --> 0:07:49.480 Is staying with Reddit. 0:07:51.200 --> 0:07:54.120 Thanks for having me, Good morning. Q four was a 0:07:54.160 --> 0:07:55.960 really strong quarter for us. 0:07:56.200 --> 0:07:59.960 We saw daily active users growth thirty nine percent ear year, 0:08:00.440 --> 0:08:03.480 the revenue grow seventy one percent year. Every year so 0:08:03.960 --> 0:08:06.640 I think in terms of growth, we're probably top of 0:08:06.680 --> 0:08:09.360 the market in terms of both of those. Start to 0:08:09.400 --> 0:08:12.640 find a company that's growing as fast for the things 0:08:12.640 --> 0:08:15.200 that we control. In terms of making the product better, 0:08:15.320 --> 0:08:18.520 making it easier, helping people find communities faster. 0:08:19.080 --> 0:08:20.640 We're really happy with our work. 0:08:20.840 --> 0:08:23.760 Our work is working, and that's been consistent over the 0:08:23.840 --> 0:08:26.200 last four quarters, and there's a lot more there. We're 0:08:26.240 --> 0:08:30.200 still early in that process. In late Q four we 0:08:30.240 --> 0:08:33.160 did see that there were some changes in Google that 0:08:33.240 --> 0:08:35.840 sort of came and went. We've seen recovery since then 0:08:36.280 --> 0:08:39.080 and we're off to a really good start and the 0:08:39.120 --> 0:08:42.280 work that we're doing again continues to bear fruit and 0:08:42.280 --> 0:08:46.720 making Reddit more extensible. Reddit is an opportunity, as an 0:08:46.720 --> 0:08:50.920 opportunity to address everybody. The whole world needs community and 0:08:50.960 --> 0:08:53.760 has passions and interests and can be on Reddit. So 0:08:53.840 --> 0:08:57.280 we make redit easier, more accessible, help people find their 0:08:57.320 --> 0:09:01.000 communities faster. That's when it becomes extend incible to everybody 0:09:01.000 --> 0:09:03.480 in the world. So our tam is really everybody. We're 0:09:03.520 --> 0:09:05.439 just early in that journey, so we feel very good 0:09:05.440 --> 0:09:07.520 about our roadmap and our opportunity. 0:09:08.520 --> 0:09:12.040 Jen Reddit has a licensing agreement with Google and in 0:09:12.080 --> 0:09:16.760 the earnings call yesterday, the company called that relationship symbiotics. 0:09:16.760 --> 0:09:19.319 So the faster that users can find Reddit on a 0:09:19.360 --> 0:09:22.880 Google search, the more engaged they can be on your website, 0:09:22.920 --> 0:09:26.000 and then in turn, the better data that Google is 0:09:26.040 --> 0:09:29.640 able to glean. Have you had conversations with Google about 0:09:29.720 --> 0:09:31.680 maybe cutting you some slack or at least giving you, 0:09:31.679 --> 0:09:33.960 guys a heads up next time there's an algorithm. 0:09:33.559 --> 0:09:37.920 Change the way that Google work, you know, Google Google 0:09:38.120 --> 0:09:42.240 the way the algorithm work is there proprietary work. The 0:09:42.240 --> 0:09:46.200 conversations we've had are around obviously the Reddit data and 0:09:46.240 --> 0:09:50.480 how that can be used for training and for in 0:09:50.520 --> 0:09:56.920 their you know, search generative products. There's no question that 0:09:56.960 --> 0:10:00.440 it's a symbiotic relationship in that. What happened when next year, 0:10:00.920 --> 0:10:04.000 I think in searches demonstrates this. So Reddit has become 0:10:04.080 --> 0:10:07.880 the sixth most search term in US in Google. 0:10:07.920 --> 0:10:09.120 I mean, that's incredible. 0:10:09.160 --> 0:10:13.120 That means people are intentionally searching for Reddit. They're typing 0:10:13.120 --> 0:10:16.280 in a query what's the best backpack Reddit? Because they 0:10:16.360 --> 0:10:19.720 are trying to navigate to the recommendations and the trove 0:10:20.240 --> 0:10:24.280 of human intelligence on Reddit, and because Reddit has the 0:10:24.280 --> 0:10:27.320 best answers on the internet, and Google is a place 0:10:27.360 --> 0:10:30.959 where people go for broad based questions. It's a really 0:10:30.960 --> 0:10:35.840 symbiotic relationship, and that helps reveal the corpus of information 0:10:35.920 --> 0:10:39.200 that Reddit has to users who are searching the broad 0:10:39.200 --> 0:10:42.440 based Internet. So in that sense, you know, it's been 0:10:42.480 --> 0:10:44.280 a very fruitful partnership. 0:10:45.320 --> 0:10:47.600 But if it's getting harder for users. 0:10:47.280 --> 0:10:51.760 To find a Reddit link via Google Search, do you 0:10:51.840 --> 0:10:54.599 see this kind of algorithm change or similar ones in 0:10:54.640 --> 0:10:56.760 the future straining that relationship. 0:10:58.640 --> 0:11:02.200 We've been beneficiaries of the open Internet, and again, when 0:11:02.280 --> 0:11:06.880 people are intentionally navigating to Reddit, that tells us that 0:11:06.960 --> 0:11:10.959 they are trying to access that information on red the recommendations, 0:11:11.000 --> 0:11:14.679 the advice. So I think we're really important because we're 0:11:14.720 --> 0:11:19.959 actually what users are seeking, right, they're actively searching for us. 0:11:21.000 --> 0:11:23.400 The way we think about it is this whole process of. 0:11:23.480 --> 0:11:26.880 Data licensing is really I think revealed how important reddits 0:11:26.960 --> 0:11:31.160 content is, and we also have an opportunity to build 0:11:31.200 --> 0:11:34.960 our own products around our corpus of information. You see 0:11:34.960 --> 0:11:37.840 this with us testing something called Reddit Answers, which is 0:11:37.880 --> 0:11:41.360 a chat based search that reveals recommendations on Reddit. 0:11:41.400 --> 0:11:43.079 Again what's the best backpack. 0:11:42.720 --> 0:11:45.360 But it gives you a search result that is specific 0:11:45.440 --> 0:11:50.160 to Reddit that shows answers and opinions across every subreddit 0:11:50.480 --> 0:11:54.840 a really different experience from broad based internet search, and 0:11:54.880 --> 0:11:57.440 I think we have an opportunity to continue to build 0:11:57.559 --> 0:12:01.120 our own products around our corpus of information in addition 0:12:01.320 --> 0:12:05.079 to being in sort of broad based search on the Internet. 0:12:05.280 --> 0:12:08.480 So speak to those analysts or investors with some anxiety 0:12:08.480 --> 0:12:11.400 about the dependence on Google. How much is Reddit ass 0:12:11.440 --> 0:12:13.720 boosting the engagement that you control. 0:12:15.120 --> 0:12:18.040 Reddit answers is early right now, it's it's in a 0:12:18.080 --> 0:12:20.480 beta test, But we like what we're seeing there. 0:12:20.559 --> 0:12:23.280 I think the thesis of people wanting. 0:12:23.000 --> 0:12:25.760 To come and be able to search Reddit and see 0:12:26.080 --> 0:12:30.120 what is happening across opinions across all communities, that thesis, 0:12:30.160 --> 0:12:30.720 I think. 0:12:30.559 --> 0:12:32.640 Is born out, and so we're excited about what we 0:12:32.679 --> 0:12:33.120 see there. 0:12:33.160 --> 0:12:37.640 We are investing in search search of Reddit, and there's 0:12:37.679 --> 0:12:40.400 an opportunity for us that will continue to be building out. 0:12:41.440 --> 0:12:46.800 When I think about the opportunity here, it's it's it's enormous, right, 0:12:46.840 --> 0:12:52.079 I mean recommendations and advice. We have twenty years of 0:12:52.200 --> 0:12:56.200 conversations on every topic on the planet, and so it's 0:12:56.200 --> 0:12:59.040 core to our mission to empower communities and make their 0:12:59.080 --> 0:13:04.040 knowledge accessible both to all. 0:13:02.360 --> 0:13:05.080 That's red at COO. Jen Wong, thanks so much for 0:13:05.160 --> 0:13:08.000 joining us. We also caught up with the CEO of 0:13:08.080 --> 0:13:10.600 Lyft yesterday on the heels of the company's earnings. We 0:13:10.679 --> 0:13:14.320 discussed his outlook on autonomous vehicles and competition with the 0:13:14.440 --> 0:13:17.400 likes of Weaimo, and he says Lift's market share in 0:13:17.440 --> 0:13:18.800 San Francisco has not. 0:13:18.880 --> 0:13:20.360 Moved to a listen. 0:13:21.840 --> 0:13:23.200 In San Francisco, it's flat. 0:13:23.480 --> 0:13:27.000 Interesting is even as they increase in San Francisco, our 0:13:27.040 --> 0:13:29.480 share has been flat now, So that suggests that the 0:13:29.520 --> 0:13:32.720 market is expanding, maybe suggests that they're taking some share from. 0:13:32.640 --> 0:13:33.520 The other guys. I don't know. 0:13:33.880 --> 0:13:36.400 In Phoenix, we're actually growing faster than ever, so we 0:13:36.400 --> 0:13:39.280 grow about fifteen percent nationwide in Phoenix. It's a little 0:13:39.280 --> 0:13:41.439 north of that. So that also even and Wyn was 0:13:41.520 --> 0:13:44.800 quite active there. So it's a great profit. It's great technology, 0:13:44.840 --> 0:13:46.280 but I think a lot of people come and they 0:13:46.400 --> 0:13:47.840 use it, and they like it, and then they come 0:13:47.920 --> 0:13:49.080 back to traditional ride share and. 0:13:49.120 --> 0:13:49.600 Use this both. 0:13:49.720 --> 0:13:53.000 Your competitor, Uber said it would quote hopefully partner with 0:13:53.040 --> 0:13:56.199 Tesla's on autonomous vehicles. They said that last year has 0:13:56.240 --> 0:13:58.680 lived had any conversations with Elon Musk or Tesla about 0:13:58.679 --> 0:13:59.719 a potential partnership. 0:14:00.000 --> 0:14:01.920 You know, I don't talk about individual things like that. 0:14:02.000 --> 0:14:04.160 I think, you know, there's this sort of danger of 0:14:04.240 --> 0:14:06.319 kind of trying to win the press release and announcement war, 0:14:06.360 --> 0:14:08.000 and we try to win the service war. That's kind 0:14:08.000 --> 0:14:10.760 of our thing. So I want to say not. I 0:14:10.760 --> 0:14:13.319 think it's I think that'll be all kinds of partnerships, 0:14:13.360 --> 0:14:15.680 I really do, and the ones that happen, we'll kind of. 0:14:15.679 --> 0:14:16.400 Have to see. 0:14:16.679 --> 0:14:20.680 The incoming Transportation Secretary Sean Duffy has proposed that a 0:14:20.760 --> 0:14:24.640 federal level law should kind of supersede this patchwork of 0:14:24.680 --> 0:14:28.360 state by state rules for autonomous vehicles. Do you think 0:14:28.360 --> 0:14:32.880 this new administration would help lift's ambitions in autonomous vehicles? 0:14:32.960 --> 0:14:33.800 I do, I do. 0:14:33.920 --> 0:14:34.120 Yeah. 0:14:34.160 --> 0:14:35.640 The safe by state thing is really hard. 0:14:35.680 --> 0:14:38.440 I mean, it's you understand, you want to do some 0:14:38.520 --> 0:14:41.440 local experimentation in different states are different, they have different cultures, 0:14:41.440 --> 0:14:43.120 they have different geographies, different weather and. 0:14:43.120 --> 0:14:43.880 So on and so forth. 0:14:44.080 --> 0:14:46.600 But an overall sort of safety, you know, kind of 0:14:46.640 --> 0:14:49.280 framework and general autonomous vehicle framework I think would be 0:14:49.360 --> 0:14:52.080 very helpful in helping this industry move a little bit 0:14:52.160 --> 0:14:54.160 faster and frankly, keep up with the way the rest. 0:14:54.000 --> 0:14:54.680 Of the world is going. 0:14:55.800 --> 0:14:59.560 That was Lift CEO David Risher. We're also watching shares 0:14:59.640 --> 0:15:03.200 of Coinbase. Shares are up over six percent because it's 0:15:03.200 --> 0:15:06.720 a key beneficiary of President Trump's promise to usher in 0:15:06.800 --> 0:15:08.600 a new era for the cryptospace. 0:15:08.960 --> 0:15:09.720 The exchange is. 0:15:09.720 --> 0:15:12.800 Reporting fourth quarter results after the belt today, and Wall 0:15:12.800 --> 0:15:15.720 Street is expecting to see a boost in trading volumes 0:15:15.760 --> 0:15:23.680 on the back of bitcoins gains. 0:15:24.880 --> 0:15:27.960 Blue Origin, Jeff Bezos' rocket company, is cutting ten percent 0:15:28.000 --> 0:15:30.840 of its workforce to cut costs, to trim manager ranks, 0:15:30.960 --> 0:15:32.360 and to focus on ramping. 0:15:32.120 --> 0:15:33.160 Up rocket launches. 0:15:33.440 --> 0:15:35.880 That the surprise round of layoffs comes about a month 0:15:35.920 --> 0:15:39.440 after Blue Origin debuted its flagship New Glen Rocket Swing 0:15:39.560 --> 0:15:41.479 years of delays and development setbacks. 0:15:41.840 --> 0:15:46.840 Jackie startup K two Space has raised one hundred and 0:15:46.960 --> 0:15:49.920 ten million dollars in a series speed funding ground led 0:15:49.960 --> 0:15:53.680 by light Speed Ventures and Ultimeter Capital. The company, created 0:15:53.720 --> 0:15:56.720 by former SpaceX engineers, is developing. 0:15:56.280 --> 0:15:58.440 A platform to launch multiple. 0:15:58.040 --> 0:16:01.480 Satellites into orbit at higher speed and lower costs than 0:16:01.560 --> 0:16:04.520 currently available. Joining us now is K two Space CEO 0:16:04.920 --> 0:16:08.280 Karen Kundred. Thank you so much for joining us. Walk 0:16:08.360 --> 0:16:11.120 us through about what your platform actually does. It's essentially 0:16:11.280 --> 0:16:14.440 almost like a bus for satellites. How are you able 0:16:14.480 --> 0:16:15.680 to do this at a cheaper price? 0:16:15.880 --> 0:16:18.640 So we're building a platform that is ten times more 0:16:18.680 --> 0:16:20.280 powerful than existing platforms. 0:16:20.280 --> 0:16:20.600 Today. 0:16:21.040 --> 0:16:24.160 When it comes to applications in space, almost every application 0:16:24.240 --> 0:16:26.400 ties back to power. So my brother and I kind 0:16:26.400 --> 0:16:28.000 of started the company on the contrarian bet. 0:16:28.120 --> 0:16:29.760 We decided to go the opposite direction. 0:16:29.560 --> 0:16:31.800 Of the market that was going smaller and lower power 0:16:31.880 --> 0:16:34.720 with their satellites and redesign the satellite. From the reaction, 0:16:34.800 --> 0:16:37.240 weill up to build a platform that is higher power, 0:16:37.440 --> 0:16:40.600 higher capability, while still being able to multi manifest into 0:16:40.640 --> 0:16:42.239 launch vehicles to do constellations. 0:16:43.080 --> 0:16:46.760 The market has come to your contrariant bet because SpaceX 0:16:46.880 --> 0:16:49.480 is starship just the innovation in terms of bigger and 0:16:49.480 --> 0:16:52.360 bigger rockets being able to pay take these bigger and 0:16:52.360 --> 0:16:56.400 bigger payloads. I'm interested in ultimately what the manufacturing therefore 0:16:56.440 --> 0:17:01.120 is needed in the United States because you're vertically integrated exactly. 0:17:01.280 --> 0:17:04.840 Yeah, all launch players like SpaceX and Blue Origin are 0:17:04.960 --> 0:17:07.280 moving the market larger. We kind of equate it to 0:17:07.920 --> 0:17:10.920 we're moving from an era of launch constraint in space 0:17:11.119 --> 0:17:13.840 to launch abundance. It's almost as if we're operating in 0:17:13.840 --> 0:17:16.360 the age of dial up internet and moving to broadband, 0:17:16.560 --> 0:17:19.280 and our company was started under this premise of like 0:17:19.320 --> 0:17:21.200 what happens at this new age of broadband where we 0:17:21.240 --> 0:17:24.680 can do things differently. For us, it's vertical integration, it's 0:17:24.760 --> 0:17:27.800 rebuilding the satellite. We're building about seventy five percent of 0:17:27.840 --> 0:17:30.280 the satellite in the house, and that allows us to 0:17:30.280 --> 0:17:33.119 do a lot of unique things to optimize the platform 0:17:33.560 --> 0:17:36.200 for the launch future that we see coming, not necessarily 0:17:36.200 --> 0:17:37.440 the launch vehicles of the past. 0:17:37.880 --> 0:17:40.400 You've already brought in millions of dollars worth of contracts, 0:17:40.400 --> 0:17:44.040 both coming from the public sector but also commercial contracts. 0:17:44.359 --> 0:17:47.800 We've heard a lot about the DoD getting inside Silicon 0:17:47.920 --> 0:17:51.560 Valley trying to scoop up some of those startup ideas. 0:17:51.600 --> 0:17:54.240 But talk to us about your commercial. 0:17:53.640 --> 0:17:56.159 Partnerships, because there's a lot of space companies out there 0:17:56.200 --> 0:17:56.560 right now. 0:17:56.640 --> 0:17:56.880 Yeah. 0:17:56.880 --> 0:17:59.280 The interesting thing about going higher power, when you tex 0:17:59.280 --> 0:18:02.320 the amount of power, you also dramatically increase the throughput 0:18:02.359 --> 0:18:06.280 per satellite. So our commercial customers are mainly commercial operators 0:18:06.280 --> 0:18:08.760 that are beaming data down from space that see the 0:18:08.760 --> 0:18:10.919 potential when you have ten times the amount of power 0:18:11.160 --> 0:18:14.720 to fundamentally change the unit economics of their business. Higher 0:18:14.760 --> 0:18:17.880 power means more throughput while maintaining the low cost means 0:18:17.880 --> 0:18:20.359 that they're actually able to deploy even more satellites with 0:18:20.440 --> 0:18:22.679 even more capacity on orbit in a way they never 0:18:22.720 --> 0:18:23.280 could before. 0:18:23.520 --> 0:18:26.960 So are these like SpaceX, Blue Origin those kind of players. 0:18:27.480 --> 0:18:29.280 SpaceX and Blue Origin are two of the players, but 0:18:29.320 --> 0:18:31.199 there's a bunch of others out there as well that 0:18:31.320 --> 0:18:35.280 are also thinking about how to better operate their constellations 0:18:35.280 --> 0:18:35.800 on orbit. 0:18:36.880 --> 0:18:39.639 What's so interesting is the government side of things as well, Karen, 0:18:39.720 --> 0:18:42.359 And you've got John Plum, of course, who used to 0:18:42.400 --> 0:18:44.800 be in government, former Assistance Sectuary of Defense for Space 0:18:44.840 --> 0:18:48.560 policy in house now. But how is it liaising with 0:18:48.600 --> 0:18:51.119 the current administration that we've just had breaking news that 0:18:51.400 --> 0:18:53.800 a deal with Starling over in South Africa is in 0:18:53.880 --> 0:18:57.679 jeopardy because of relationships between Elon Musk and President Trump. 0:18:57.960 --> 0:18:59.520 How are you finding relationships? 0:19:00.560 --> 0:19:02.440 Yeah, we were pretty excited to bring John on the team. 0:19:02.440 --> 0:19:05.720 He's the former Assistant Secretary of Defense for space policy. 0:19:06.119 --> 0:19:08.040 When we first briefed him, he kind of saw what 0:19:08.119 --> 0:19:11.320 was possible with this completely new platform at the end 0:19:11.320 --> 0:19:13.679 of the day, we believe that if we build a 0:19:13.720 --> 0:19:16.480 platform that is as differentiated as what we claim it 0:19:16.520 --> 0:19:19.400 to be, our work with the national security and commercial 0:19:19.400 --> 0:19:22.639 customers will come regardless of the political environment. What I 0:19:22.680 --> 0:19:25.520 will say is that the existing administration has clearly shown 0:19:25.840 --> 0:19:29.120 that they believe space is the next frontier, an important 0:19:29.119 --> 0:19:32.159 place to have investment, and we're pretty excited to continue 0:19:32.200 --> 0:19:33.920 to service our national security customers. 0:19:34.280 --> 0:19:36.679 You know news today that Blue Origin is cutting ten 0:19:36.720 --> 0:19:39.119 percent of its workforce. Are you worried at all that 0:19:39.119 --> 0:19:41.480 that signals a broader slow down in the space in 0:19:41.520 --> 0:19:41.920 any way? 0:19:42.359 --> 0:19:44.240 Yeah, it's you know, we have a lot of friends 0:19:44.240 --> 0:19:46.760 that work over there. We're pretty sad to see hear 0:19:46.760 --> 0:19:48.960 about that, and you know, we'll be trying to hire 0:19:49.000 --> 0:19:51.639 ourselves people that may be leading from that company. I 0:19:51.640 --> 0:19:54.960 think layoffs and investment are always a part of the 0:19:55.040 --> 0:19:58.080 national natural capital cycle when it comes to any business. 0:19:58.640 --> 0:20:01.360 You don't like to see it, but sometimes that happens, 0:20:01.400 --> 0:20:02.960 and so I don't think it's a nicative of a 0:20:02.960 --> 0:20:05.960 broader trend. I mean, we raised we were preempted on 0:20:06.000 --> 0:20:08.520