WEBVTT - Micron HBM Sales Surge, Palantir’s Stock Keeps Climbing 0:00:04.120 --> 0:00:08.520 Bloomberg Tech is alive from coast to coast, with Caroline 0:00:08.600 --> 0:00:12.600 Hide in New York and ev Lolow into San Francisco. 0:00:15.000 --> 0:00:16.640 This is Bloomberg Tech coming up. 0:00:16.720 --> 0:00:20.560 Micron's high bandwidth memory business fuels a sales surge, more 0:00:20.560 --> 0:00:21.599 in its earnings results. 0:00:21.640 --> 0:00:26.200 Next, plus how young startup Expo backed by Ultimate Capital, 0:00:26.280 --> 0:00:29.960 developed an AI tool that does better than experienced hackers. 0:00:30.360 --> 0:00:33.680 And we dive into talents. Three hundred percent stock rallies 0:00:33.680 --> 0:00:38.120 since October. This is defense tech comes increasingly into focus. 0:00:38.440 --> 0:00:40.879 Meanwhile, and focus are the big benchmarks today. The S 0:00:40.920 --> 0:00:43.880 and P five hundred ching in on its record high. 0:00:43.920 --> 0:00:46.400 All as the market focuses in on the federal Reserve 0:00:46.440 --> 0:00:48.320 where we see more rate cups. Can we have three 0:00:48.760 --> 0:00:51.200 as soon as this year as we see economic data 0:00:51.200 --> 0:00:53.160 come in mix Today, ed, we're looking at a five 0:00:53.680 --> 0:00:56.160 tenths of a percent push higher actually on the nast 0:00:56.120 --> 0:00:59.000 that one hundred feeling of a risk on attitude, particularly 0:00:59.000 --> 0:01:00.400 towards certain chipmakers. 0:01:00.040 --> 0:01:00.680 You're looking at. 0:01:01.280 --> 0:01:04.600 Yeah, Micron, America's biggest maker of memory chips, posted a 0:01:04.640 --> 0:01:06.720 really strong forecast for the current period. 0:01:06.840 --> 0:01:08.400 The stock opened up almost two. 0:01:08.200 --> 0:01:11.039 Percent higher, it's now down one percent, and we can 0:01:11.040 --> 0:01:13.759 get into the reasons right real quick. In Video, which 0:01:13.760 --> 0:01:16.400 has had a sort of tepid morning, is now backed 0:01:16.800 --> 0:01:20.680 continuing to hold at a fresh all time high in Micron. 0:01:20.920 --> 0:01:24.000 Let's get into Bloomberg Intelligence Analysis with Jake Silverman and 0:01:24.120 --> 0:01:25.520 Jake I'm looking through. 0:01:25.360 --> 0:01:26.440 The transcripts as a call. 0:01:26.880 --> 0:01:30.560 The forecast shows demand in the AI context, but I 0:01:30.560 --> 0:01:33.760 think pricing, Jake, is a really key conversation here. 0:01:36.200 --> 0:01:41.920 Yeah, absolutely so, AI is a particularly strong tailwind for pricing. 0:01:41.959 --> 0:01:44.520 But you have to keep in mind that the consumer 0:01:44.600 --> 0:01:48.880 market is still particularly important for Micron, at least think 0:01:49.480 --> 0:01:53.080 of smartphones, but also PCs and other SSD products and 0:01:53.160 --> 0:01:56.160 D round products. So we're going to have to see 0:01:56.160 --> 0:01:59.960 some of those seasonal tailwinds, you know, smartphone PC upgrade, 0:02:00.160 --> 0:02:03.440 and those will beneficial pricing, but also structural limitations in 0:02:03.520 --> 0:02:05.880 terms of capacity capacity. 0:02:06.040 --> 0:02:09.600 Basically for many of these companies, it's been a supply issue, 0:02:09.680 --> 0:02:12.120 haven't been a demand issue, Jake, We've also seen a 0:02:12.160 --> 0:02:14.280 demand issue with the shares. You'll see they've out performed 0:02:14.320 --> 0:02:17.240 and about fifty percent of the course of year to date. 0:02:17.680 --> 0:02:19.800 Was it just that so much was already priced into 0:02:19.800 --> 0:02:20.359 the market here? 0:02:20.440 --> 0:02:22.160 How high have expectations been. 0:02:22.680 --> 0:02:25.880 Yeah, I mean expectations have gotten pretty high. I think 0:02:25.919 --> 0:02:29.120 as we've seen spot prices and contract prices increase over 0:02:29.160 --> 0:02:32.079 the recent weeks and months, that built into some of 0:02:32.120 --> 0:02:35.520 those expectations. Again, a high bandwidth memory is something that 0:02:35.560 --> 0:02:40.040 continues to be considered fairly important for sentiment in Micron, 0:02:40.360 --> 0:02:43.360 but it's also a fairly small percentage of the company's 0:02:43.400 --> 0:02:47.639 overall revenue. So there's just pretty high expectations across multiple 0:02:47.639 --> 0:02:49.919 facets of the business, and so they're going to need 0:02:49.960 --> 0:02:52.360 to continue to gain share in high band with memory. 0:02:52.360 --> 0:02:55.240 They're going to need to continue to execute in that regard, 0:02:55.280 --> 0:02:58.160 but also across their other AI products, while also managing 0:02:58.200 --> 0:03:00.919 the rest of their business, which again drives a lot 0:03:00.919 --> 0:03:03.040 of that pricing strength. 0:03:03.880 --> 0:03:06.320 Right, the executives on the call were pretty clear, right, Jake, 0:03:06.360 --> 0:03:09.600 the story simple data center growth sequentially in year on 0:03:09.680 --> 0:03:12.240 year and that will continue to outperform, and some of 0:03:12.280 --> 0:03:15.600 the other businesses not as strong, but in the background, 0:03:15.800 --> 0:03:19.239 they're investing in and building out capacity. Just try and 0:03:19.240 --> 0:03:22.520 help our audience understand how difficult it is to produce 0:03:22.680 --> 0:03:25.160 HBM and what the bottle neck is right now for 0:03:25.200 --> 0:03:26.360 Micron and its customers. 0:03:26.760 --> 0:03:30.880 Yeah, so HBM is a little bit more complex, actually 0:03:30.919 --> 0:03:34.280 maybe fairly more complex when we think about actually producing 0:03:34.280 --> 0:03:37.680 relative to other memory products, especially in DRAM. So it's 0:03:37.720 --> 0:03:41.320 stacked HBM. So we've talked about they've talked about twelve 0:03:41.440 --> 0:03:44.240 high stack, eight high stack, so that that gives you 0:03:44.280 --> 0:03:47.200 the dimensions of how high these DRAM stacks can go. 0:03:47.480 --> 0:03:50.640 And as you increase the height, it increases the complexity. 0:03:50.680 --> 0:03:53.400 And so the Micron and peers like s k Heinex 0:03:53.440 --> 0:03:56.400 are able to charge a premium. And so yield is 0:03:56.400 --> 0:03:59.160 a very important topic of conversation when we bring up 0:03:59.200 --> 0:04:02.200 complexity and their ability to execute in terms of both 0:04:02.240 --> 0:04:05.280 improving the capacity but also improving the yield drives their 0:04:05.320 --> 0:04:09.240 ability to increase their share and also increase their groups margin. 0:04:09.640 --> 0:04:12.800 Blue meg Intelligence analyst Jake Silverman and all things Micron, 0:04:12.880 --> 0:04:15.560 we appreciate it. Let's keep talking AI and the broader 0:04:15.600 --> 0:04:17.880 tech market. J Jacobs black Rock, US head of Equity 0:04:17.920 --> 0:04:20.960 ETS is here and I'm looking in astonishment at really 0:04:21.200 --> 0:04:24.320 the enthusiasm around the I shares, AI innovation and tech 0:04:24.360 --> 0:04:26.680 active ETF interesting in micrones not in there, but the 0:04:26.720 --> 0:04:29.040 top holdings are in video and their broad com How 0:04:29.120 --> 0:04:31.560 much the investors want to be in on the chip, 0:04:31.600 --> 0:04:33.440 the infrastructure names, but broadened. 0:04:33.160 --> 0:04:34.440 Out perhaps well. 0:04:34.440 --> 0:04:37.039 The portfolio manager for this fun, Tony Kim, is really 0:04:37.080 --> 0:04:40.680 looking across the value chain for opportunities and artificial intelligence. 0:04:40.839 --> 0:04:42.880 But right now where he sees some of the biggest 0:04:42.880 --> 0:04:45.960 opportunity is in those infrastructure and hardware names. If you 0:04:45.960 --> 0:04:48.320 look at where the money is being spent on AI today, 0:04:48.400 --> 0:04:51.280 the almost quarter of a trillion dollars being spent by 0:04:51.279 --> 0:04:54.839 the megagapp tech names. It's being concentrated in semiconductor names 0:04:54.839 --> 0:04:57.360 and data centers and all the support compute that's going 0:04:57.400 --> 0:04:59.760 around that, And so our fund is very much tilted 0:04:59.760 --> 0:05:01.000 towards that exposure right. 0:05:00.920 --> 0:05:03.200 Now, tilted towards in video, which is at a record 0:05:03.240 --> 0:05:04.880 high as well. I'm just going to see where broad 0:05:04.880 --> 0:05:06.960 Comm stands today, but it too has been very close 0:05:07.000 --> 0:05:08.040 to record highs throughout. 0:05:08.440 --> 0:05:09.679 It is at a record high today. 0:05:09.800 --> 0:05:11.880 How much well juice is there to go on that 0:05:11.920 --> 0:05:14.520 infrastructure play? How much can you continue to sweat at 0:05:14.520 --> 0:05:14.960 an ets? 0:05:15.240 --> 0:05:16.839 It's still early. I mean, if we look at the 0:05:16.839 --> 0:05:19.760 next several years, we're expecting about seven trillion dollars to 0:05:19.800 --> 0:05:22.880 be spent on AI. Capex so we have a long 0:05:22.920 --> 0:05:24.600 way to go. There's a lot of dollars to come 0:05:24.640 --> 0:05:26.800 into the space. I still think we're in the early innings. 0:05:27.080 --> 0:05:29.760 Over time, the exposure will evolve, though. Well, this is 0:05:29.839 --> 0:05:32.560 kind of the build out stage of building all that infrastructure. 0:05:32.800 --> 0:05:34.320 The next stage is going to be much more about 0:05:34.360 --> 0:05:37.159 adaption of AI. Who's commercializing these AI products? 0:05:38.320 --> 0:05:40.440 Jay, your thesis or a part of it is this 0:05:40.520 --> 0:05:44.880 overconcentration in megacaps, the fixation with the MAG seven. There's 0:05:44.880 --> 0:05:48.039 an interesting side debate which is whether we should rethink 0:05:48.200 --> 0:05:51.400 the composition of the MAG seven broad com perhaps making 0:05:51.440 --> 0:05:55.640 the strongest case on fundamentals about joining or participating in 0:05:55.680 --> 0:05:59.120 that group. All of that to say, like, what should 0:05:59.160 --> 0:06:01.840 we do if that's the case, if we have overconcentration. 0:06:02.000 --> 0:06:03.119 Where else do you look? 0:06:03.640 --> 0:06:05.920 Well, whils Street always loves a good acronym for these things, 0:06:05.920 --> 0:06:08.360 and maybe it's time for any one. Look, I think 0:06:08.400 --> 0:06:11.720 it's really about looking beyond just concentrated megacap tech names. Yes, 0:06:11.760 --> 0:06:14.000 they're important players in the AI space, but they don't 0:06:14.400 --> 0:06:16.919 encapsulate all of it. You know, we've looked across twenty 0:06:16.960 --> 0:06:20.680 thousand different financial advisor portfolios. When we found ninety five 0:06:20.720 --> 0:06:23.120 percent of the AI exposure in their portfolios is coming 0:06:23.120 --> 0:06:26.159 from megacap tech names, So people are very overweight megacap 0:06:26.200 --> 0:06:27.919 tech just you know, largely a function of how the 0:06:27.960 --> 0:06:30.600 S and P five hundred is today, but very underweight 0:06:30.720 --> 0:06:33.760 the broader kind of long tail of artificial intelligence names 0:06:34.080 --> 0:06:38.120 in digital infrastructure, in data in compute, et cetera. So 0:06:38.440 --> 0:06:40.640 we really think it's about kind of reducing large cap 0:06:40.720 --> 0:06:44.200 tech because there's a lot of concentration there and broadening 0:06:44.200 --> 0:06:46.480 it out across the value chain with a fund like BAI. 0:06:47.440 --> 0:06:51.760 What about those non tech sectors that are most impacted 0:06:51.800 --> 0:06:54.080 by AI or transformed by AI. 0:06:54.200 --> 0:06:56.800 Where do you want to look Well, I think one 0:06:56.839 --> 0:06:58.800 of the more interesting areas is where there's a lot 0:06:58.800 --> 0:07:02.919 of data that hasn't been harnessed by artificial intelligence. And 0:07:02.960 --> 0:07:04.800 you have to look at the healthcare sector as being 0:07:04.839 --> 0:07:08.400 just prime for using all that information around patient data, 0:07:08.440 --> 0:07:11.880 around hospital management, around the development of new drugs, around 0:07:11.880 --> 0:07:15.560 protein research. There's just so much data that frankly has 0:07:15.600 --> 0:07:18.520 been under utilized, and if you can apply artificial intelligence 0:07:18.520 --> 0:07:20.679 to it, you can get more efficient, you can reduce 0:07:20.720 --> 0:07:24.640 the cost of drug development, you can improve performance, improve 0:07:24.680 --> 0:07:27.320 outcomes for patients, which really would make this sector very 0:07:27.320 --> 0:07:29.600 attractive one from an artificial intelligence perspective. 0:07:29.840 --> 0:07:31.360 I go back to bai I go back to the 0:07:31.360 --> 0:07:34.840 Innovation and Tech Active ETF. Here, most of the top 0:07:34.880 --> 0:07:36.920 holdings are US companies. You have to get to number 0:07:36.920 --> 0:07:38.840 fifteen to get a Japanese company, and then there's a 0:07:38.840 --> 0:07:40.360 sprinkling of the Japanese coming in. 0:07:40.760 --> 0:07:43.080 Is it still US exceptionalism here? 0:07:43.440 --> 0:07:43.760 It is. 0:07:43.920 --> 0:07:46.160 It's a function of where we're seeing the best public 0:07:46.200 --> 0:07:49.240 market opportunities and artificial intelligence. It is being led by 0:07:49.280 --> 0:07:51.640 the United States. We have some of the lowest costs 0:07:51.640 --> 0:07:54.000 of capital, we have some of the most innovative companies. 0:07:54.600 --> 0:07:57.880 We have a vibrant startup community that's kind of fueling 0:07:58.200 --> 0:08:01.120 IPOs in this space as well. It is a global 0:08:01.120 --> 0:08:03.840 trend and we do have global exposure, but right now 0:08:03.840 --> 0:08:05.160 the US is very much leading. 0:08:05.200 --> 0:08:07.000 And what about the investors who are piling in just 0:08:07.520 --> 0:08:10.040 get us up to speed. It's what about two billion 0:08:10.200 --> 0:08:13.240 that's been coming in of late into the from client assets. 0:08:13.240 --> 0:08:14.040 Where are they coming from? 0:08:14.120 --> 0:08:15.840 Yeah, so we've brought in two billion dollars over the 0:08:15.880 --> 0:08:16.600 last nine months. 0:08:16.600 --> 0:08:16.760 Now. 0:08:16.760 --> 0:08:18.760 One of the major things that happened is black Rocks 0:08:18.840 --> 0:08:23.040 target Allocation model ETF models has allocated to AI. Our 0:08:23.080 --> 0:08:25.840 model portfolio managers like Michael Gates have looked at the 0:08:25.880 --> 0:08:28.640 landscape and said, we want to reduce large cap tech 0:08:28.720 --> 0:08:31.280 exposure and reduce some of our just tech sector exposure 0:08:31.480 --> 0:08:33.960 and replace it with artificial intelligence because this is a 0:08:34.000 --> 0:08:36.360 high conviction theme that we believe in over the long run, 0:08:36.600 --> 0:08:38.480 and so they've been shifting their exposures to get more 0:08:38.520 --> 0:08:39.920 pure play in the AI theme. 0:08:41.040 --> 0:08:42.640 Jay Humor May. 0:08:43.440 --> 0:08:47.120 Federal Reserve Chair Pow was posed many questions on the 0:08:47.120 --> 0:08:50.800 impact of AI labor markets in the future of the economy. 0:08:50.640 --> 0:08:51.600 And FED policy. 0:08:52.200 --> 0:08:54.440 It was difficult for him to answer, But do you 0:08:54.440 --> 0:08:56.599 think about it in those terms? You basically say, I 0:08:56.640 --> 0:08:59.040 look at the economy of the United States and the world, 0:08:59.200 --> 0:09:02.839 and I try and alculate how structurally things might change 0:09:02.880 --> 0:09:03.439 going forward. 0:09:04.280 --> 0:09:05.920 Yeah, I think this is an important area to look 0:09:05.960 --> 0:09:08.480 at where AI can augment work right, How can it 0:09:08.520 --> 0:09:11.640 make us more efficient? Can we accelerate productivity? Especially in 0:09:11.679 --> 0:09:14.080 the context of aging populations around the world. So if 0:09:14.120 --> 0:09:16.800 you look at developed markets, in many cases, the growth 0:09:16.800 --> 0:09:19.360 of a labor market is slowing, and so you really 0:09:19.520 --> 0:09:22.959 almost need AI and that productivity growth to maintain strong 0:09:23.040 --> 0:09:25.520 GDP growth across these developed economies. So I think in 0:09:25.559 --> 0:09:28.000 many ways, AI is going to be an incredible tool 0:09:28.040 --> 0:09:30.480 to boost productivity and frankly a tool that develop markets 0:09:30.520 --> 0:09:32.560 need to lead it. This is why we're seeing AI 0:09:32.600 --> 0:09:36.280 at the crux of geopolitics, because people policymakers see it 0:09:37.000 --> 0:09:40.320 as such an accelerant towards our economy over the long run. 0:09:41.240 --> 0:09:43.439 Throughout the show in the day, actually we're going to 0:09:43.440 --> 0:09:46.320 be talking about Patenteer and it makes me think about 0:09:46.640 --> 0:09:50.480 not just software, but this kind of broader American effort 0:09:50.559 --> 0:09:54.680 to reindustrialize the country in a number of sectors, defense, 0:09:54.800 --> 0:09:58.360 artificial intelligence, data centers. Is there some kind of big 0:09:58.400 --> 0:10:00.320 picture effect that you're trying to jump on to on 0:10:00.400 --> 0:10:05.120 this reindustrialization the manufacturing of stuff here in America. 0:10:05.679 --> 0:10:07.920 Well, this is really at the intersection of several themes. 0:10:08.040 --> 0:10:10.640 You know, We've looked at five mega forces around the 0:10:10.640 --> 0:10:12.680 world that are kind of changing the long term trajectory 0:10:12.720 --> 0:10:15.160 of economies, and one of them is aging populations, which 0:10:15.200 --> 0:10:17.280 you've mentioned, one of them is artificial intelligence, and the 0:10:17.320 --> 0:10:20.319 third one is really geopolitical fragmentation. All of these are 0:10:20.320 --> 0:10:25.160 combining to bring in you know, certain themes like infrastructure. 0:10:25.280 --> 0:10:26.880 How when we see that we want to build more 0:10:26.920 --> 0:10:29.000 in the United States, we have to have better roads, 0:10:29.000 --> 0:10:33.640 better highways, better waterways, better power to accelerate that. How 0:10:33.679 --> 0:10:35.480 do we have the best technology in the world through 0:10:35.559 --> 0:10:40.240 artificial intelligence and leaning into that segment. So really, yes, 0:10:40.320 --> 0:10:42.680 all of these things are kind of colliding here to 0:10:42.800 --> 0:10:45.640 really lead some of the best economic opportunities in the 0:10:45.720 --> 0:10:46.360 United States. 0:10:47.640 --> 0:10:49.559 J Jacobs a black Rocket's great to have you back 0:10:49.600 --> 0:10:50.400 on Bloomberg Tech. 0:10:50.440 --> 0:10:51.280 Thank you very much. 0:10:51.480 --> 0:10:55.280 Coming up, China gives approval for more M and A 0:10:55.280 --> 0:10:57.880 among its tech giants. It's a big story we're watching 0:10:57.920 --> 0:11:00.239 and that's next. This is Bloomberg Tech. 0:11:09.600 --> 0:11:11.000 This time now for Talking Tech. 0:11:11.040 --> 0:11:14.080 Have verst up a growing number of Chinese AI startups 0:11:14.160 --> 0:11:16.280 where they are looking to list in Hong Kong. That 0:11:16.360 --> 0:11:20.720 could include Rikonover Technologies. It's a firm specializing in visual 0:11:20.720 --> 0:11:23.360 perception look. According to sources, the company, which is backed 0:11:23.400 --> 0:11:26.319 by Intel Capital, green Und Holdings, is looking to raise 0:11:26.320 --> 0:11:28.320 about one hundred million dollars from the listing that could 0:11:28.320 --> 0:11:31.320 happen later this year. In more listing news, In fact, 0:11:31.360 --> 0:11:34.240 digital payments provider Pine Labs has filed to go public 0:11:34.240 --> 0:11:37.439 in India, and the company, whose shareholders include PayPal, will 0:11:37.480 --> 0:11:39.840 seek to raise as much as twenty six billion rupees 0:11:39.880 --> 0:11:40.800 that's around three hundred and. 0:11:40.800 --> 0:11:41.560 Three million dollars. 0:11:41.679 --> 0:11:45.120 Indian capital markets, of course, are seeing a resurgence in listings, 0:11:45.240 --> 0:11:48.880 fueled in part by the government's push to digitize the economy. 0:11:48.920 --> 0:11:51.439 And the president and CEO of Tokyo. 0:11:51.040 --> 0:11:54.439 Electron well as shrugging off concerns about rising competition from China, 0:11:54.640 --> 0:11:58.480 he spoke exclusively with Bloomberg's Cherryan in Tokyo. 0:11:58.600 --> 0:12:01.800 How got I think you possible to maintain the difference 0:12:01.840 --> 0:12:05.520 in technology between China and our company. I'm sure that 0:12:05.600 --> 0:12:08.360 Chinese vendors are trying to catch up with us, but 0:12:08.559 --> 0:12:11.320 we must be faster. We can be faster than them 0:12:11.559 --> 0:12:14.880 in technology innovation, and that's how we can maintain or 0:12:15.080 --> 0:12:19.600 increase the difference. We are the spe manufacturer, but we 0:12:19.720 --> 0:12:23.080 are not chip makers. So for us, it is key 0:12:23.120 --> 0:12:26.360 to work with the world leading chip manufacturer to develop 0:12:26.400 --> 0:12:28.760 the best in the world process and best in the 0:12:28.800 --> 0:12:29.600 world equipment. 0:12:30.040 --> 0:12:32.880 You can watch the full interview on Bloomberg Tech Asia 0:12:33.080 --> 0:12:35.680 catch a premiere as tomorrow at eight thirty pm Eastern 0:12:35.679 --> 0:12:38.240 Time eight thirty am in Hong Kong. 0:12:38.280 --> 0:12:40.360 Ed stay in Asia. 0:12:40.440 --> 0:12:43.679 Jaomi says they've received more than two hundred thousand pre 0:12:43.840 --> 0:12:47.680 orders for its first electric suv, the Yu seven, in 0:12:47.840 --> 0:12:48.720 just three minutes. 0:12:48.880 --> 0:12:49.640 For more Bloombag. 0:12:49.679 --> 0:12:52.960 Peter Elstrom joins us and on the live feed during 0:12:53.000 --> 0:12:56.520 the presentation, I noticed there were several million people tuned 0:12:56.559 --> 0:12:58.800 in on x What do we know about this new 0:12:58.880 --> 0:13:01.840 suv and the appetite here for Jaomi. 0:13:03.120 --> 0:13:06.240 Yeah, the excitement around show Me and its electric vehicles 0:13:06.320 --> 0:13:09.080 is quite something. The founder late June, just did this 0:13:09.160 --> 0:13:12.680 presentation in Beijing a little while ago, and he talked 0:13:12.720 --> 0:13:14.840 about this new suv. It's going to be priced around 0:13:14.920 --> 0:13:17.280 thirty five thousand dollars at the low end, it'll go 0:13:17.360 --> 0:13:19.560 up to about forty six thousand dollars. And he took 0:13:19.600 --> 0:13:23.720 aim directly at Tesla. Tesla's model why is the best 0:13:23.720 --> 0:13:27.480 selling suv in China right now, And he's going directly 0:13:27.520 --> 0:13:29.280 after them. He wants to be able to compete with 0:13:29.320 --> 0:13:32.160 them on price and on features, and so far they've 0:13:32.160 --> 0:13:34.320 been gaining a lot of ground. Now. Show Me, a course, 0:13:34.400 --> 0:13:37.400 is best known for its smartphones. They began by competing 0:13:37.440 --> 0:13:39.520 against Apple with their smartphones. They did a lot of 0:13:39.559 --> 0:13:43.120 innovative things with that company. Late June kind of modeled 0:13:43.160 --> 0:13:46.319 himself after Steve Jobs for a even with black turtlenecks. 0:13:46.760 --> 0:13:49.640 But now they've been diversifying into a number of different areas, 0:13:49.679 --> 0:13:53.440 including appliances, even luggage. When I visited them in Beijing, 0:13:53.480 --> 0:13:56.040 they had all sorts of goods out there. But this 0:13:56.160 --> 0:13:58.760 move into cars is really being something different. The stock 0:13:58.840 --> 0:14:01.840 has taken off, the share are really soaring. They've tripled 0:14:01.840 --> 0:14:03.920 over the past year, in fact, and I think you're 0:14:03.920 --> 0:14:06.760 seeing this now reflected in the strong demand for their 0:14:06.840 --> 0:14:07.360 new SUV. 0:14:08.000 --> 0:14:11.400 I mean extraordinary two hundred thousand and three minutes. You've 0:14:11.400 --> 0:14:14.280 got to undred eighty nine thousand in one hour. Peter, 0:14:15.000 --> 0:14:18.679 there was a worry about almost innovation happening too quickly 0:14:18.840 --> 0:14:20.400 and a crash that happened with the S seven. 0:14:20.640 --> 0:14:22.280 Is that sort of being shrugged. 0:14:21.840 --> 0:14:25.000 Off right, Yeah, you're referring there was a there was 0:14:25.040 --> 0:14:27.440 a crash in China with a Shami car where it 0:14:27.520 --> 0:14:30.560 led to a fatality. They did put a they hit 0:14:30.640 --> 0:14:32.480 the pause button on some of their sales at that 0:14:32.520 --> 0:14:35.360 point to look at the technology within the car. But 0:14:35.480 --> 0:14:38.440 now they're moving forward. They introduced this new vehicle. They 0:14:38.440 --> 0:14:41.320 feel like they put them that behind them and now 0:14:41.360 --> 0:14:44.120 they're you know, they're they're seeing strong customer demand for 0:14:44.160 --> 0:14:46.480 these cars. As we're talking a little bit about before. 0:14:46.520 --> 0:14:48.400 They look very much like Porsches. You know, you can 0:14:48.440 --> 0:14:51.480 get effectively a porstial looking car. It's an EV for 0:14:51.560 --> 0:14:55.240 thirty five thousand dollars. Chinese consumers like that offer. 0:14:56.600 --> 0:14:59.400 I find policy in China on tech companies so interesting. 0:14:59.440 --> 0:15:02.360 It's either restrictive, right you think about the video games 0:15:02.360 --> 0:15:02.920 industry in the. 0:15:02.960 --> 0:15:05.640 Last couple of years now allowing M and A. 0:15:05.640 --> 0:15:08.480 Are you able to summarize, Peter, what the Chinese government's 0:15:08.480 --> 0:15:12.440 attitude is towards the tech sector overall. 0:15:12.760 --> 0:15:15.840 Oh, that's a big ass, but I'll do what I 0:15:15.880 --> 0:15:18.880 can anyways. Yeah, I mean, certainly, what you saw in 0:15:18.920 --> 0:15:23.480 the twenty teens, in particular, was growing domination by a 0:15:23.480 --> 0:15:26.920 couple of the biggest technology companies there, especially Ali Baba 0:15:26.960 --> 0:15:29.520 and Tencent. They put tons of money into startups. They 0:15:29.520 --> 0:15:32.240 had scores, probably hundreds of companies that they invested in, 0:15:32.440 --> 0:15:35.280 and they had these ecosystems that they kind of controlled, 0:15:35.560 --> 0:15:38.040 and that really lasted during the boom years after Ali 0:15:38.080 --> 0:15:39.800 Baba went public and showed that you can make a 0:15:39.800 --> 0:15:43.280 lot of money on some of these Chinese tech stocks. 0:15:43.320 --> 0:15:46.560 In particular, we had this big crackdown, the jackmar crackdown, 0:15:46.600 --> 0:15:49.920 after he spoke out against regulators. The ant group IPO 0:15:50.080 --> 0:15:52.360 was pulled, and after that, essentially all this m and 0:15:52.400 --> 0:15:55.000 A stopped. There was no more consolidation. In fact, the 0:15:55.000 --> 0:15:58.160 companies had to roll back a lot of the plants 0:15:58.160 --> 0:16:00.760 that they had. Ali Baba sold off a bunch of 0:16:00.760 --> 0:16:03.480 its assets too. And now what we're seeing partly because 0:16:03.480 --> 0:16:06.000 the Chinese economy is a little baracky at this point, 0:16:06.240 --> 0:16:08.800 they need more support from the private sector. They've given 0:16:08.840 --> 0:16:11.720 more support to the tech companies in particular, they've seen 0:16:11.760 --> 0:16:15.720 some new breakthroughs truth too, like deep seekin Ai. Huawei 0:16:15.760 --> 0:16:18.000 has made a lot of progress in different areas too. 0:16:18.280 --> 0:16:21.040 So now Alibab and Tensen are able to go back 0:16:21.080 --> 0:16:23.120 to doing some M and A. They're beginning to do 0:16:23.480 --> 0:16:25.280 a little bit, and it's nothing like the scale that 0:16:25.320 --> 0:16:27.320 they did in the past, but they are able to 0:16:27.320 --> 0:16:28.320 make some acquisitions. 0:16:29.360 --> 0:16:32.800 Bloomberg's Peter Elstrom answering the difficult question, thank you very much. 0:16:39.640 --> 0:16:42.520 After receiving a tepid response for investors when it went 0:16:42.560 --> 0:16:45.640 public back in March. Core We've stock has had a 0:16:45.800 --> 0:16:49.480 meteoric rise around three hundred percent, has propelled the company's 0:16:49.480 --> 0:16:52.600 CEO into the ranks for the world's richest with some 0:16:52.720 --> 0:16:55.720 unusual speed. Bloomberg's Dillon Slow And joins us and has 0:16:55.760 --> 0:16:58.880 the profile. This is like key tech wealth coverage, right, 0:16:58.960 --> 0:17:01.640 a slow start on the ip but things change and 0:17:01.720 --> 0:17:05.560 now a key figurehead has a pretty healthy net. 0:17:05.359 --> 0:17:07.879 Wealth exactly, Yes, just like you were saying, kind of 0:17:07.920 --> 0:17:09.920 in some ways mirroring sort of the trajectory of the 0:17:09.960 --> 0:17:12.120 IPO market more generally over the course of the year. 0:17:12.240 --> 0:17:15.040 So when this company debuted in mid March, they were 0:17:15.040 --> 0:17:17.280 initially seeking to raise at about a thirty five billion 0:17:17.320 --> 0:17:20.840 dollar valuation, ended up completing the offering about a twenty 0:17:20.880 --> 0:17:22.720 three billion dollar valuation. 0:17:22.359 --> 0:17:23.199 So well below that. 0:17:23.840 --> 0:17:26.560 Actually, the ceo mic and Trader came on Bloomberg Television 0:17:26.560 --> 0:17:29.320 and told us that without a big order from Nvidia, 0:17:29.680 --> 0:17:32.600 one of their largest investors, the deal might not even 0:17:32.600 --> 0:17:34.840 have closed. So this stock traded pretty flat for about 0:17:34.840 --> 0:17:36.760 two months after then, but it's off as again, as 0:17:36.760 --> 0:17:38.440 you said, about three hundred percent in cent and that's 0:17:38.440 --> 0:17:41.480 generated some really significant wealth gains, not just for the CEO, 0:17:41.560 --> 0:17:44.200 but for other co founders and early investors too. 0:17:44.440 --> 0:17:47.240 I know he's now the three hundred and eleventh richest person. 0:17:47.320 --> 0:17:50.080 He's ahead of Robert Craft I think of Magnetar and 0:17:50.080 --> 0:17:52.560 some of the other key companies that backed them early. 0:17:53.160 --> 0:17:55.040 What's interesting is he managed to go out there and 0:17:55.040 --> 0:17:57.320 start to convince the market of the business model. Perhaps 0:17:57.359 --> 0:18:02.080 got misunderstood or underrun appreciated when the IPO came out. 0:18:02.240 --> 0:18:04.480 Yeah, absolutely, And you know, the stock really started picking 0:18:04.560 --> 0:18:06.639 up after the report of their first court earnings. They 0:18:06.680 --> 0:18:09.840 beat estimates there and Nvidia also disclosed it they'd increase 0:18:09.880 --> 0:18:11.439 the size of their stake, and it's really been all 0:18:11.520 --> 0:18:13.440 up from there. It's gotten a lot of retail interest too, 0:18:13.480 --> 0:18:17.960 so generated some sort of meme stocky comparisons from some commentators, 0:18:17.960 --> 0:18:20.960 but for in traders specifically, his networth right now standing 0:18:21.000 --> 0:18:23.280 at about ten point three billion dollars, and it's not 0:18:23.320 --> 0:18:25.080 just the size of that, but it's the speed as well. 0:18:25.640 --> 0:18:28.480 For the Bloomberg Billionaires Index, all of the billionaires we track, 0:18:28.840 --> 0:18:30.920 the average time it takes for someone to go from 0:18:30.920 --> 0:18:33.080 a five billion to a ten billion dollar net worth 0:18:33.200 --> 0:18:35.960 is just about three years and four months and trader 0:18:35.960 --> 0:18:39.119 did it in twelve trading days, so far faster than 0:18:39.200 --> 0:18:39.960 the average person. 0:18:40.520 --> 0:18:43.520 Now do Circle founder Jeremy Lair. I'm sure you're on 0:18:43.520 --> 0:18:45.880 that one too, Dylan Sloan, appreciate your time. 0:18:45.960 --> 0:18:48.000 Thank you. Now, let's talk about. 0:18:47.800 --> 0:18:50.919 A US district judge who has just ruled that Anthropics 0:18:51.040 --> 0:18:54.560 use millions of books without payment to train its models, 0:18:54.960 --> 0:18:58.280 and it's legal under copyright law, falling under the fair 0:18:58.400 --> 0:19:01.200