WEBVTT - Musk’s Mega Plan for Chip Manufacturing 0:00:02.520 --> 0:00:13.520 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.560 --> 0:00:17.400 from coast to coast with Caroline Hyde in New York 0:00:17.640 --> 0:00:19.599 and Eva Low in Sent Francisco. 0:00:22.840 --> 0:00:24.480 This is Bloomberg Tech coming up. 0:00:24.480 --> 0:00:27.680 A possible de escalation in the Middle East ripples through 0:00:27.680 --> 0:00:31.159 markets as President Trump outlines talks to potentially end the 0:00:31.200 --> 0:00:31.880 war in Iran. 0:00:32.120 --> 0:00:34.920 Plus, we'll take a look at Mosque's grand plan to 0:00:34.960 --> 0:00:39.280 manufacture his own chips for robotics, AI and space data centers. 0:00:39.440 --> 0:00:42.760 And Nscale becomes one of Europe's most valuable startups with 0:00:42.800 --> 0:00:46.680 a fourteen point six billion dollar valuation and add Sheryl 0:00:46.720 --> 0:00:47.720 Sandberg to its boards. 0:00:47.760 --> 0:00:51.680 We'll discuss let's check on these markets first and foremost, though, 0:00:51.680 --> 0:00:54.360 because you called it rippling through the market said, there 0:00:54.400 --> 0:00:56.960 is talk of a de escalation, there is sites being 0:00:57.000 --> 0:00:58.840 set on the straight or four moves, and there isn't 0:00:58.840 --> 0:01:01.760 it another record move for Brent contract of like ten 0:01:01.760 --> 0:01:04.240 percent and one point it fell below ninety six dollars. 0:01:04.400 --> 0:01:06.520 This of course fuel some risk on sentiment. 0:01:06.560 --> 0:01:08.600 We see the NaSTA one hundred having its best day 0:01:08.600 --> 0:01:10.280 since the start of February. At one point it's best 0:01:10.360 --> 0:01:13.360 day since November. And this really as we see President 0:01:13.400 --> 0:01:16.840 Trump send shockwaves through the market with what seems to 0:01:16.840 --> 0:01:20.240 be an apparent discussion at a high level and maybe 0:01:20.240 --> 0:01:21.560 some movement towards the strait. 0:01:21.400 --> 0:01:22.720 Of hol moves. Just take a listen to what he 0:01:22.760 --> 0:01:23.920 said to reporters. 0:01:23.480 --> 0:01:26.959 Earlier that would be up in to their version if 0:01:27.000 --> 0:01:33.960 this worked, be a jointly control nine Maybe me, maybe me, thanks, 0:01:34.280 --> 0:01:37.000 me and the idola, whoever the idolla. 0:01:36.680 --> 0:01:40.760 Is President Trump speaking to reporters earlier today. Let's get 0:01:40.760 --> 0:01:43.360 to Bloombers Kyle Lyons, co host of Balance of Power 0:01:43.720 --> 0:01:45.400 for the latest, and what is the latest? 0:01:45.480 --> 0:01:45.640 You know? 0:01:45.680 --> 0:01:49.040 All morning long, so many headlines on the terminal about 0:01:49.040 --> 0:01:51.600 the state of talks between the United States in Iran. 0:01:53.120 --> 0:01:55.080 Yeah, and we have seen a major about face from 0:01:55.080 --> 0:01:57.680 President Trump here, from threatening within forty eight hours to 0:01:57.720 --> 0:02:00.760 attack Iranian power and energy infrastructure, they did not agree 0:02:00.760 --> 0:02:02.559 to open the strait of horror moves to now saying 0:02:02.560 --> 0:02:04.560 he's asked for a delay of such action for five 0:02:04.680 --> 0:02:07.520 days due to progress in talks that he said took 0:02:07.520 --> 0:02:10.760 place someday between his envoy Steve Whitcoff and Jared Kushner 0:02:10.800 --> 0:02:13.600 and their Iranian counterparts, in which he said, according to 0:02:13.639 --> 0:02:16.880 those discussions, Iran agreed not to restart its nuclear program 0:02:16.919 --> 0:02:20.160 and to relinquish nuclear material that is still in the country. 0:02:20.200 --> 0:02:21.880 He says, Iran is the one who was looking to 0:02:21.880 --> 0:02:23.480 make a deal here, though he would like to make 0:02:23.480 --> 0:02:26.440 a deal as well. But there are a few outstanding questions, 0:02:26.480 --> 0:02:28.840 one being who is it exactly that the US is 0:02:28.919 --> 0:02:31.120 negotiating with. As President Trump said, it is not the 0:02:31.160 --> 0:02:33.600 Iyatola Mushtaba Hamane, of course, the son of the late 0:02:34.040 --> 0:02:37.799 Supreme Leader, and the US has repeatedly heralded as well 0:02:37.800 --> 0:02:40.680 as Israel taking out much of Iran's top brass, from 0:02:40.680 --> 0:02:42.960 the national security chief to the defense chief to the 0:02:42.960 --> 0:02:45.600 head of the Iranian Revolutionary Guard card. It's not exactly 0:02:45.639 --> 0:02:48.440 clear who this person may be, though Axios is reporting 0:02:48.440 --> 0:02:52.000 that Whitcoff is speaking with the leader of the Iranian Parliament, 0:02:52.040 --> 0:02:53.320 so that may be the case. That we have not 0:02:53.360 --> 0:02:55.880 confirmed that here at Bloomberg. And beyond that, it is 0:02:55.919 --> 0:02:58.520 not clear that Iran is actually as eager to make 0:02:58.560 --> 0:03:01.160 a deal as the President suggests. Iranian state media have 0:03:01.200 --> 0:03:04.120 said that the president's statements is just psychological warfare and 0:03:04.240 --> 0:03:06.640 effort to get energy prices down, and that no talks 0:03:06.639 --> 0:03:10.000 are happening between Tehran and Washington. There's also the third 0:03:10.000 --> 0:03:13.280 party in this conflict to consider, Israel. Israeli officials have 0:03:13.320 --> 0:03:15.880 told Bloomberg that they do not see an imminent end 0:03:15.919 --> 0:03:17.920 to the war and they will continue strikes, though not 0:03:17.960 --> 0:03:20.440 looking at energy infrastructure. And so that does remain an 0:03:20.480 --> 0:03:22.560 open question. Even if the US and Israel are not 0:03:22.600 --> 0:03:25.280 going after the energy infrastructure, is the president threatened? That 0:03:25.400 --> 0:03:27.840 is not to say that military strikes and operations against 0:03:27.880 --> 0:03:31.800 other assets will not continue in the region all the same, Clearly, 0:03:31.840 --> 0:03:34.079 with the President's a more optimistic tone on a potential 0:03:34.120 --> 0:03:37.400 diplomatic offramp to this conflict is rippling its way through 0:03:37.400 --> 0:03:39.640 financial markets today, which may impart have been his. 0:03:39.640 --> 0:03:42.880 Intent, Katie, a very thorough state of affairs. 0:03:42.960 --> 0:03:44.160 Where do we look to next? 0:03:45.840 --> 0:03:48.480 Well, it's going to be a question of, as President 0:03:48.480 --> 0:03:50.920 Trump says that talks will continue by phone between the 0:03:51.000 --> 0:03:53.080 US and Iran today, if we get any further readout 0:03:53.120 --> 0:03:55.280 from those or if Iranian state media starts to signal 0:03:55.320 --> 0:03:58.440 that perhaps there is more effort toward a deal, not 0:03:58.520 --> 0:04:00.440 just on the US side, but on the Iranians as well, 0:04:00.440 --> 0:04:02.520 and if we hear any further developments for Israelis to 0:04:02.520 --> 0:04:04.440 whether or not they are willing to accept the terms 0:04:04.440 --> 0:04:07.680 that President Trump is outlining here, Certainly a degree of 0:04:07.720 --> 0:04:11.280 skepticism may be warranted until anything is more ironed out. 0:04:11.360 --> 0:04:13.320 Keeping in mind as well that we are coming off 0:04:13.360 --> 0:04:16.840 the deployment of more assets and personnel, including thousands of marines, 0:04:16.880 --> 0:04:18.720 to the Middle East, and a request by the Pentagon 0:04:19.160 --> 0:04:21.160 to the tune of some two hundred billion dollars to 0:04:21.240 --> 0:04:24.120 Congress for additional funding for this conflict, and of course 0:04:24.160 --> 0:04:28.320 to backfill stockpiles that we have deployed thus far in 0:04:28.360 --> 0:04:31.280 the Middle East. So it doesn't appear necessarily that the 0:04:31.360 --> 0:04:33.760 US at this time is fully willing to walk away 0:04:33.760 --> 0:04:37.200 from military operations, even as a diplomatic off ramp may 0:04:37.240 --> 0:04:39.039 be pursued here. I would also know that President Trump 0:04:39.080 --> 0:04:41.320 is scheduled to speak in Memphis at one pm. It's 0:04:41.320 --> 0:04:43.680 something more domestically focused on crime, but he could, as 0:04:43.720 --> 0:04:46.440 he speaks with officials they are and with reporters gathered, 0:04:46.480 --> 0:04:49.600 give even more signalists to what exactly he sees happening 0:04:49.600 --> 0:04:50.760 next when it comes to run. 0:04:50.839 --> 0:04:53.600 Bl most Kaylee lines from Washington, thank you very much. Indeed, 0:04:53.680 --> 0:04:55.880 look that's bringing the market reaction to all of this, 0:04:55.880 --> 0:04:58.040 Bluemost Billy Lipshitz joins us, Now, we always have a 0:04:58.080 --> 0:05:01.159 tech focus on this show, but to whiplash. 0:05:00.880 --> 0:05:02.680 In terms of the turnaround of the markets, Yeah, no, 0:05:02.720 --> 0:05:04.680 And in Bloomberg reporting just a few minutes ago that 0:05:04.920 --> 0:05:07.920 the president's decision was aimed in part at calming markets. 0:05:07.960 --> 0:05:09.200 So we did see that reaction. 0:05:09.560 --> 0:05:12.000 As you mentioned, we saw the SP five hundred absolutely 0:05:12.080 --> 0:05:15.120 rip when Trump talked down d escalator or talked about 0:05:15.160 --> 0:05:17.600 de escalation. There's so much uncertainty around what the path 0:05:17.640 --> 0:05:19.640 forward looks like. The main thing to keep in mind, 0:05:19.760 --> 0:05:21.640 the SP five hundred is really back to where it 0:05:21.800 --> 0:05:24.120 was on Wednesday. It's where essentially it was at the 0:05:24.279 --> 0:05:25.839 end of Friday a week. 0:05:25.720 --> 0:05:26.360 And a half ago. 0:05:26.720 --> 0:05:28.920 So as much volatility as there has been on the 0:05:29.000 --> 0:05:32.440 headline levels, you're not really seeing an actual move in 0:05:32.560 --> 0:05:35.560 either direction. Yes, the SP five hundred broke below it's 0:05:35.560 --> 0:05:38.000 two hundred and one hundred day moving averages back above that, 0:05:38.360 --> 0:05:41.080 but for all intents and purposes, you're still in essentially 0:05:41.400 --> 0:05:43.239 a banded region for the last few weeks. 0:05:44.240 --> 0:05:46.880 Remember that we ended Friday with the Nasdaq one hundred 0:05:47.200 --> 0:05:49.640 having its full straight week of declines, and the thing 0:05:50.080 --> 0:05:52.880 about the warring Iran is that the headlines change direction 0:05:52.960 --> 0:05:55.599 all the time. There's been big outperformance in chips as well, 0:05:56.000 --> 0:05:58.680 and it's a double take, but the Philadelphia Semiconductor Index 0:05:58.800 --> 0:06:01.160 is up twelve percent so far this year. Well, then 0:06:01.200 --> 0:06:03.400 as that one hundred and an S and P five 0:06:03.480 --> 0:06:06.880 hundred both down three percent. How much is this is energy, Bailey? 0:06:06.920 --> 0:06:09.520 How much is this is still people trying to assess 0:06:10.000 --> 0:06:12.760 supply chains and how that might impact different sectors. 0:06:12.960 --> 0:06:14.320 It's a lot about the supply chain. 0:06:14.360 --> 0:06:16.640 It's a lot of uncertainty around what the ultimate knock 0:06:16.680 --> 0:06:20.160 on effects are, how long does this war conflict last, 0:06:20.279 --> 0:06:23.320 what the ultimate damage is to the infrastructure, anyrn on 0:06:23.440 --> 0:06:25.640 some of these oil fields and some of the oil 0:06:25.680 --> 0:06:28.600 refining projects. The big thing to keep in mind, though, 0:06:28.600 --> 0:06:30.960 at is that markets are tied. So we have been 0:06:31.040 --> 0:06:34.040 seeing pretty much the market move in lockstep to the 0:06:34.120 --> 0:06:37.159 downside of whatever oil's doing. So if oil's down twelve percent, 0:06:37.440 --> 0:06:40.600 logically you can expect the market to rally and vice versa. 0:06:40.760 --> 0:06:43.000 So again, it is still only Monday morning. We still 0:06:43.040 --> 0:06:45.840 have a lot of time. Even though Trump talked about 0:06:45.880 --> 0:06:48.960 a five day kind of pause, for attacking some of 0:06:49.040 --> 0:06:52.160 these energy projects. But the big thing to keep in 0:06:52.200 --> 0:06:55.160 mind is that we are seeing these moves play out 0:06:55.200 --> 0:06:56.280 in real time across. 0:06:56.200 --> 0:06:59.680 Assets, Bluebooks, Bay Lipschultz with the market some thank you 0:06:59.839 --> 0:07:00.320 very very much. 0:07:00.360 --> 0:07:00.880 Like coming up. 0:07:01.360 --> 0:07:02.360 Elon Musk Inc. 0:07:02.560 --> 0:07:06.360 Is proposing to put the entire chip industry under one 0:07:06.480 --> 0:07:10.960 roof up next the Tesla SpaceX terror Fab master plan. 0:07:11.920 --> 0:07:12.880 This is Bloomberg Tech. 0:07:22.080 --> 0:07:25.560 Tesla and SpaceX will jointly run an advanced chip manufacturing 0:07:25.600 --> 0:07:28.320 facility in Austin, Texas as according to Elon Musk, the 0:07:28.400 --> 0:07:31.560 CEO of both companies, now mask says, the semiconductor industry 0:07:31.640 --> 0:07:34.240 is moving too slowly to meet his robotics, his AI 0:07:34.360 --> 0:07:36.920 and his space ambitions. Let's get more on the plans 0:07:36.960 --> 0:07:41.040 of bloombergs Lauren Grush. So this is extraordinarily large. Was 0:07:41.080 --> 0:07:44.000 there any actual significant data we know that this will 0:07:44.080 --> 0:07:45.640 help spin things up for his companies? 0:07:47.520 --> 0:07:49.680 Well, I think a lot of you know, just like 0:07:49.880 --> 0:07:52.160 with Elon Musk and how he usually does things. 0:07:52.040 --> 0:07:53.840 There were a lot of promises, right. 0:07:54.680 --> 0:07:57.400 One thing that I took particular note of was you 0:07:57.480 --> 0:08:00.680 know how much this was going to benefit is data 0:08:00.800 --> 0:08:04.280 center in space project that they've been touting for some 0:08:04.440 --> 0:08:07.720 time now, and what we know is ultimately driving the 0:08:08.040 --> 0:08:11.600 planned IPO for SpaceX that may or may not occur 0:08:11.920 --> 0:08:12.600 later this year. 0:08:12.920 --> 0:08:15.520 We did get a rendering of what one of those 0:08:15.640 --> 0:08:16.400 data center. 0:08:16.240 --> 0:08:19.920 Satellites would look like, and so from what I understand, 0:08:20.320 --> 0:08:23.320 you know these chips will be a big factor in 0:08:23.520 --> 0:08:26.080 making those data center satellites a reality. 0:08:26.960 --> 0:08:30.440 And to you, because of course you're also our SpaceX 0:08:30.560 --> 0:08:32.920 Tesla reporter as well as being on TV with me 0:08:33.080 --> 0:08:36.040 luckily and talk to me about how you put it 0:08:36.120 --> 0:08:38.199 in the very top headline, this is trying to do 0:08:38.600 --> 0:08:40.040 everything all under one roof. 0:08:40.080 --> 0:08:42.000 We've never already seen this before in the chip industry. 0:08:42.559 --> 0:08:45.920 Yeah, so having logic, which is GPU, CPU, the GPUs 0:08:46.000 --> 0:08:49.400 going to the orbital data center, the Lauren outlined, memory 0:08:49.520 --> 0:08:52.040 and packaging. The industry doesn't work like that, and for 0:08:52.120 --> 0:08:56.320 good reason. They're done by specialists essentially as separate industries 0:08:56.360 --> 0:08:59.520 because the raw materials are completely different and the processes 0:08:59.559 --> 0:09:02.400 are are different. So it's not just the scale that's unprecedented, 0:09:02.760 --> 0:09:04.679 it's the approach. To give you an idea of that, 0:09:05.120 --> 0:09:07.440 Elon Musk is saying the facility will start at about 0:09:07.440 --> 0:09:11.120 one hundred thousand wafers a month. A lead edge fab 0:09:11.240 --> 0:09:14.640 right now probably does thirty to one hundred thousand, and 0:09:14.760 --> 0:09:16.720 then they want to scale up to one million a month. 0:09:16.800 --> 0:09:20.360 So that's about seventy percent of TSMC's global output. The 0:09:20.400 --> 0:09:22.439 footprint is kind of insane, so there's a lot of 0:09:22.520 --> 0:09:24.720 questions on how they'll fund it, and they basically said, 0:09:24.720 --> 0:09:26.360 we don't know yet, but it's going to cost a 0:09:26.400 --> 0:09:26.880 lot of money. 0:09:27.480 --> 0:09:27.760 Lauren. 0:09:27.800 --> 0:09:30.679 The other thing as well, is like eighty percent I 0:09:30.720 --> 0:09:32.160 think was the figure. I mean, you had the honor 0:09:32.160 --> 0:09:35.800 of staying up over the weekend watching the full presentation, 0:09:36.000 --> 0:09:38.920 but like we're showing on the screen now the bigger picture, 0:09:38.960 --> 0:09:42.760 which is the design for the orbital Data Center satellite 0:09:42.800 --> 0:09:44.520 form factor carried by Starship. 0:09:44.880 --> 0:09:47.560 But what Musk was saying was that the vast majority. 0:09:47.280 --> 0:09:50.280 Of activity will be to serve GPUs in space. 0:09:51.800 --> 0:09:52.000 Yeah. 0:09:52.080 --> 0:09:52.560 Absolutely. 0:09:52.559 --> 0:09:55.240 It's actually a full circle moment for me here in 0:09:55.400 --> 0:09:58.320 Arson because he made this announcement here and there had 0:09:58.320 --> 0:10:00.480 actually been a bunch of lights coming from Sea Home 0:10:00.559 --> 0:10:03.000 Power Plant, which a lot of Austinites were curious about, 0:10:03.200 --> 0:10:04.640 and then we learned Saturday. 0:10:04.320 --> 0:10:06.719 Night that yes, this was about this announcement. But yeah, 0:10:06.800 --> 0:10:08.360 as you can see on the screen. 0:10:08.080 --> 0:10:10.960 There, one of the big aspects of the orbital data 0:10:11.000 --> 0:10:13.400 centers are these massive solar panels that they're going to 0:10:13.559 --> 0:10:18.040 need in order to gather enough power to run these satellites. 0:10:18.080 --> 0:10:21.199 And that satellite is supposedly a mini satellite and it's 0:10:21.240 --> 0:10:24.400 only capable of having a capacity of think of a 0:10:24.520 --> 0:10:27.520 one hundred kilowats is what he said. But you know 0:10:27.880 --> 0:10:30.920 that they plan on launching a bunch of these satellites. 0:10:31.640 --> 0:10:36.000 You know, recently SpaceX filed with the FCC to launch 0:10:36.120 --> 0:10:38.520 up to one million data center satellites. 0:10:38.800 --> 0:10:41.600 So this is by no means a small project for them. 0:10:42.200 --> 0:10:44.719 It's an expensive project, and in many ways it's why 0:10:44.800 --> 0:10:46.520 we anticipate SpaceX is going to have to go to 0:10:46.600 --> 0:10:47.440 the public markets. 0:10:47.520 --> 0:10:49.160 Lauren, just how much more. 0:10:49.120 --> 0:10:51.840 Cost effective is it? Do we get any comparison versus 0:10:51.920 --> 0:10:52.800 doing it here on Earth? 0:10:54.640 --> 0:10:57.160 You know, the ELON has laid out the pros and 0:10:57.280 --> 0:10:59.559 cons of going to space. One of the big ones 0:10:59.679 --> 0:11:02.679 is that, you know, space is big, and there's a 0:11:02.720 --> 0:11:06.000 lot more room to move to lay all of these 0:11:06.040 --> 0:11:09.840 satellites out right. Also, the Sun is a big aspect 0:11:09.880 --> 0:11:12.240 of it. So here we have a lot of limits 0:11:12.280 --> 0:11:15.520 when it comes to getting enough power in order to run. 0:11:15.480 --> 0:11:16.320 These data centers. 0:11:16.480 --> 0:11:19.240 But the idea is to put these satellites into a 0:11:19.280 --> 0:11:23.559 specific orbit that would harness the Sun's energy practically twenty. 0:11:23.320 --> 0:11:26.400 Four to seven. So those are the reasons that are 0:11:26.440 --> 0:11:29.040 being laid out for going into space. Whether or not 0:11:29.200 --> 0:11:31.719 it's crass effective, I think, is the big question mark 0:11:31.760 --> 0:11:32.880 that we're all waiting to see. 0:11:34.160 --> 0:11:38.880 It's always sunny in space. Bluemboslare and grush, Thank you 0:11:39.040 --> 0:11:41.440 very much. Let's stick with it and get the investor perspective. 0:11:41.480 --> 0:11:44.280 We're joined by Karen Fronsky, Global head of Private Acuity 0:11:44.320 --> 0:11:47.719 Investments at Fidelity. Her teams invested in private companies for 0:11:47.800 --> 0:11:51.480 over fifteen years, currently has over fifty billion dollars deployed 0:11:51.480 --> 0:11:55.319 across one hundred and fifty private companies, County SpaceX as 0:11:55.360 --> 0:11:59.960 one of them. The idea that SpaceX is undertaking terror 0:12:00.120 --> 0:12:05.280 fab with Tesla at unprecedented scale to secure compute here 0:12:05.360 --> 0:12:06.920 on Earth and in orbit. 0:12:07.720 --> 0:12:09.199 Your reaction to that, Karen. 0:12:09.880 --> 0:12:13.360 Well, my reaction is they've actually been thinking about this 0:12:13.559 --> 0:12:15.600 for a long time. So Lauren just. 0:12:15.640 --> 0:12:20.680 Talked about the FCC application for a million SATs in space. 0:12:21.320 --> 0:12:23.560 But if you rewind back to twenty twenty two, they 0:12:23.640 --> 0:12:27.720 had filed a patent around getting computing resources to SATs 0:12:28.360 --> 0:12:30.360 in space as well. So I think this is something 0:12:30.440 --> 0:12:33.160 that Elon and his team have been thinking about for 0:12:33.400 --> 0:12:37.320 a long time, frankly at least since the post chat 0:12:37.400 --> 0:12:38.199 GPT moment. 0:12:38.960 --> 0:12:41.959 I also think conceptually it makes a lot of sense. 0:12:42.800 --> 0:12:46.440 So you just talked about Lauren just talked about harnessing 0:12:46.559 --> 0:12:50.400 power in Sun synchronous orbit. But the other constraints on 0:12:50.520 --> 0:12:54.160 AI data centers here on Earth are not just power. 0:12:54.559 --> 0:12:59.319 It's land, it's permitting, it's getting contractors like electricians to 0:12:59.400 --> 0:13:04.120 put these blocks together, and those constraints don't exist in space. 0:13:04.280 --> 0:13:07.640 And so I think conceptually it makes a ton of 0:13:07.760 --> 0:13:11.080 sense to be thinking about in the longer term data 0:13:11.160 --> 0:13:14.640 centers in space. The question, of course becomes what you 0:13:14.720 --> 0:13:18.599 were just talking about, is it economical? And frankly, what 0:13:18.760 --> 0:13:23.720 we've been watching for as investors is Starship and Starship 0:13:23.800 --> 0:13:27.679 Flight twelve should happen in April. They're going to be 0:13:27.800 --> 0:13:31.439 launching their Gen three of the ship, which will carry 0:13:31.520 --> 0:13:35.520 up to one hundred tons of payload. And as a reminder, 0:13:35.600 --> 0:13:38.800 the plan is for Starship to be fully reusable in 0:13:38.920 --> 0:13:43.520 the future, and if it's fully reusable, ultimately the cost 0:13:43.600 --> 0:13:47.760 of launching it could come down very, very meaningfully, which 0:13:47.760 --> 0:13:51.000 would mean launching the AI data centers into space. Those 0:13:51.040 --> 0:13:54.400 payloads could make that whole concept very economical. 0:13:54.679 --> 0:13:58.160 Taran, you and your team at Fidelity, what research modeling 0:13:58.200 --> 0:14:00.600 have you done for the fact and the point at 0:14:00.640 --> 0:14:04.320 which orbital data center becomes profitable. A lot of people 0:14:04.360 --> 0:14:06.720 when I said you were coming on the program wanted 0:14:06.760 --> 0:14:08.880 to know if you've been shown at any evidence by 0:14:08.960 --> 0:14:14.040 SpaceX about the viability of an or data center this decade. 0:14:14.080 --> 0:14:18.360 But many people measure it in the dollar per kilogram equation. 0:14:18.600 --> 0:14:22.040 When it comes to Starship, absolutely we do measure it 0:14:22.120 --> 0:14:25.440 in dollar per kilogram. And again, as I mentioned, it 0:14:25.560 --> 0:14:30.000 really comes down to how quickly Starship can be up 0:14:30.560 --> 0:14:34.400 and fully reusable. So as a reminder Falcon nine, they 0:14:34.680 --> 0:14:38.480 just reuse the booster the first stage and Starship will 0:14:38.520 --> 0:14:42.240 be both the booster and the ship. They've now successfully 0:14:42.320 --> 0:14:45.280 caught the booster of Starship three times at the tower catch. 0:14:45.760 --> 0:14:50.640 People have probably seen that, and they've had successful atmospheric reentry. 0:14:50.240 --> 0:14:52.240 Of the ship as well, but have not yet caught that. 0:14:53.160 --> 0:14:54.760 The other thing that they haven't done as of yet 0:14:54.880 --> 0:14:59.119 is they actually haven't dispensed of any actual payloads into. 0:14:58.960 --> 0:14:59.800 Space as of yet. 0:15:00.200 --> 0:15:03.760 They've tested out the pez door which opens up to 0:15:03.880 --> 0:15:06.840 let the payloads out, but actual payloads have not been 0:15:07.800 --> 0:15:08.720 put out into space. 0:15:08.800 --> 0:15:11.720 So those are the milestones that were really following. 0:15:12.360 --> 0:15:14.520 But you can bet there is an Excel spreadsheet at 0:15:14.560 --> 0:15:18.600 Fidelity that measures that the cost for kill a watt 0:15:18.800 --> 0:15:21.440 and when we believe this will become economical. 0:15:21.600 --> 0:15:23.720 Oh, there's gonna be people who really want to see 0:15:23.800 --> 0:15:27.040 that Excel spreadsheet, Karen, in particular those who look a 0:15:27.160 --> 0:15:30.120 more cynical on the how outlook of the economy and 0:15:30.200 --> 0:15:33.280 the economic pros and cons of this. For example, the 0:15:33.520 --> 0:15:37.800 Jim chainos well known for betting against certain key themes, 0:15:37.880 --> 0:15:40.520 but he asks in a post in particular, how much 0:15:40.600 --> 0:15:43.320 one giga what data central space would save in terms 0:15:43.320 --> 0:15:46.160 of power costs versus one giga? What terrestrial data center 0:15:46.400 --> 0:15:48.240 can you push out where you think it could go 0:15:48.400 --> 0:15:48.800 at least? 0:15:50.400 --> 0:15:50.600 Yeah? 0:15:50.640 --> 0:15:53.160 I mean listen, I think again, we're talking not this year, 0:15:53.400 --> 0:15:56.240 not next year, we are talking about several years out. 0:15:57.560 --> 0:16:01.400 But it could it could move down the cost pretty meaningfully. 0:16:02.200 --> 0:16:04.400 I won't give you an exact dollar amount, but we 0:16:04.800 --> 0:16:06.720 do believe it could be pretty material. 0:16:07.000 --> 0:16:07.640 In the here and now. 0:16:07.760 --> 0:16:10.200 What we're looking for materiality is up to a one 0:16:10.200 --> 0:16:13.160 point two five trillion dollar evaluation. If SpaceX does indeed 0:16:13.240 --> 0:16:16.200 go public, how realistic do you think that is at 0:16:16.200 --> 0:16:18.120 the moment? What momentum do we need to see? Because 0:16:18.160 --> 0:16:19.800 at the moment we're all sort of at the behest 0:16:19.840 --> 0:16:20.440 of the markets. 0:16:21.640 --> 0:16:23.080 We are at the behest of the market. 0:16:24.080 --> 0:16:28.360 Obviously the markets are feeling quite good this morning as well. 0:16:29.000 --> 0:16:32.000 But I think it's important to remember that SpaceX has 0:16:32.640 --> 0:16:35.000 a lot going for it right now. 0:16:35.600 --> 0:16:37.680 You know, when we first invested at Fidelity back in 0:16:37.720 --> 0:16:42.280 twenty fifteen in SpaceX, they had done thirteen Falcon nine 0:16:42.360 --> 0:16:46.760 launches to date. Today they launch every other day. They're 0:16:46.800 --> 0:16:49.840 putting up somewhere between eighty to ninety percent of the 0:16:50.080 --> 0:16:55.480 world's payload one company. They when we first invested, they 0:16:55.480 --> 0:16:59.880 didn't have a single Starlink satellite or Starlink sub to that, 0:17:00.160 --> 0:17:01.440 they have ten million. 0:17:01.440 --> 0:17:03.280 Subscribers across the globe. 0:17:03.800 --> 0:17:07.640 Obviously, there are ambitions to do more on the wireless 0:17:07.760 --> 0:17:10.800 carrier front. So SpaceX has a lot going for it, 0:17:10.920 --> 0:17:12.960 and of course, you know the cherry on top would 0:17:12.960 --> 0:17:14.920 be the future of orbital data. 0:17:14.760 --> 0:17:19.480 Centers, right, incredible capital efficiency, right, twelve billion dollars raised 0:17:19.480 --> 0:17:22.000 in its lifetime, and you think about what it's done 0:17:22.040 --> 0:17:26.440 with that. The next thing is, what's a scenario where 0:17:26.600 --> 0:17:31.479 SpaceX merges with Tesla and why? Because that's the reaction 0:17:31.680 --> 0:17:35.040 that people have had since TERRAFAB was announced over the weekend. 0:17:36.600 --> 0:17:38.879 Yeah, I mean, obviously people have been talking about that 0:17:39.040 --> 0:17:43.879 possibility for a little while, and SpaceX acquiring XAI certainly 0:17:44.000 --> 0:17:49.200 catalyze those conversations even further. And I think Elon is, 0:17:49.359 --> 0:17:51.160 you know, kind of putting his cards on the table, 0:17:51.200 --> 0:17:54.119 if you will, as it relates to his ambitions to 0:17:54.880 --> 0:17:59.479 vertically integrate the ability to be a chip manufacturer, as 0:17:59.560 --> 0:18:02.240 difficult as it may be, but also in putting in 0:18:02.400 --> 0:18:05.480 aggregate data centers. Remember he's done it here on Earth 0:18:05.560 --> 0:18:08.440 CLASSUS one and CLASSUS two. He done it, he did 0:18:08.520 --> 0:18:14.600 in record time CLASSUS one specifically, and very large GPU clusters, 0:18:14.640 --> 0:18:17.440 and so from an engineering perspective, I think he knows 0:18:17.480 --> 0:18:19.440 how to do it. I'm not trying to be flippant 0:18:19.520 --> 0:18:23.879 about how difficult some of these things are, but he 0:18:24.080 --> 0:18:28.159 is an expert at vertically integrating companies and. 0:18:28.600 --> 0:18:31.760 A thinking beyond all of this in many ways. 0:18:31.840 --> 0:18:34.240 Karin Frosky, I wish we could it done the whole 0:18:34.280 --> 0:18:36.800 show with you and gone so much more into some 0:18:36.880 --> 0:18:39.440 of the investments. Global head of Private Equity Investments of 0:18:39.480 --> 0:18:43.040 Fidelity Thanking now coming up. Tim Cook's succession plans remain 0:18:43.359 --> 0:18:46.200 a mystery, but details emerge in the air apparent that's next. 0:18:46.400 --> 0:18:47.399 This is pretty bad Tech. 0:19:00.000 --> 0:19:02.879 CEO Tim Kirk is now sixty five and has been 0:19:03.000 --> 0:19:06.040 tight lit about his retirement and succession plans, but a 0:19:06.119 --> 0:19:10.000 leading candidate is beginning to emerge. John Turnus, Apple's senior 0:19:10.119 --> 0:19:13.240 VP of hardware Engineering, has taken on a growing role 0:19:13.359 --> 0:19:16.680 overseeing the company's products and marketing. For more, let's get 0:19:16.680 --> 0:19:19.359 to Bloomberg's Mark German, who leads our coverage when all 0:19:19.440 --> 0:19:22.479 things Apple and consumer technology. And this is an important 0:19:22.480 --> 0:19:25.280 piece of writing, right, this is what people have been 0:19:25.359 --> 0:19:26.840 asking about for quite some time. 0:19:27.320 --> 0:19:28.040 What do we need to know? 0:19:29.600 --> 0:19:29.960 Yeah, you know. 0:19:30.040 --> 0:19:32.359 Tim Cook is not ready to talk about retirement. He 0:19:32.520 --> 0:19:35.560 says that he can't live without Apple. He can't imagine 0:19:35.560 --> 0:19:38.640 a time where he's not at Apple. And the good 0:19:38.720 --> 0:19:41.720 news for him and for shareholders is we probably don't 0:19:41.760 --> 0:19:44.280 have to imagine a time with Tim Cook not at 0:19:44.280 --> 0:19:47.480 Apple for at least another ten ten years or so, 0:19:48.000 --> 0:19:51.680 right because when he steps down as CEO, he will 0:19:51.720 --> 0:19:54.679 stay involved at the company in some sort of capacity, 0:19:54.760 --> 0:19:58.760 probably executive chairman. But the wheels are in motion for 0:19:59.040 --> 0:20:02.200 Tim Cook to step down in the next half decade 0:20:02.640 --> 0:20:05.560