WEBVTT - Tesla Emerging as Tariff Winner, Crypto Welcomes Paul Aktin for SEC Chair 0:00:02.520 --> 0:00:09.119 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.200 --> 0:00:14.920 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.360 --> 0:00:44.840 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.680 --> 0:00:35.360 Live from New York. 0:00:35.400 --> 0:00:37.720 I'm Caroline Hyde, and this is Bloomberg Technology. 0:00:37.760 --> 0:00:38.159 Coming up. 0:00:38.479 --> 0:00:41.479 Tariff winners and losers in the EV industry as President 0:00:41.520 --> 0:00:43.920 Trump signs a twenty five percent. 0:00:43.600 --> 0:00:46.159 Tariff on auto imports plus core. 0:00:46.040 --> 0:00:50.080 We've tests the ibo and AI appetite for brands to 0:00:50.080 --> 0:00:52.519 cut the size of its US listening sources tell Bloomberg, 0:00:52.960 --> 0:00:56.880 while Open Ai shows continued AI optimism, finalizing a fourteen 0:00:57.000 --> 0:01:01.240 billion dollar funding round led by softbankargest of all time. 0:01:01.680 --> 0:01:04.360 But first we check in on markets, which are being whiswored. 0:01:04.360 --> 0:01:04.840 At the moment. 0:01:04.880 --> 0:01:07.160 We started in the red. We're now managing to push 0:01:07.160 --> 0:01:09.000 it into the green. On the Nasdaq one hundred, we're 0:01:09.080 --> 0:01:11.960 led higher by names that I will reveal in a moment. 0:01:12.000 --> 0:01:14.800 But on the downside is AMD, for example, once again 0:01:14.840 --> 0:01:17.240 being called out for its lack of competitive edge versus 0:01:17.240 --> 0:01:19.400 an nvidio. You've got PDD on the downside from a 0:01:19.400 --> 0:01:23.520 points perspective, But Moon Music trying to digest the ongoing 0:01:23.640 --> 0:01:26.520 tariff narrative coming from the White House when it means 0:01:26.520 --> 0:01:28.200 for the auto sect. And we dive into that now 0:01:28.200 --> 0:01:31.759 because on a points perspective, the biggest drag higher Tesla. 0:01:31.959 --> 0:01:34.319 We're up by six call it seven percent. 0:01:34.400 --> 0:01:36.880 Now, this is of course, it makes an awful lot 0:01:36.880 --> 0:01:39.280 of the components and its cars right here in the 0:01:39.360 --> 0:01:41.880 United States. Yes, it has exposure to Mexico, but less 0:01:42.000 --> 0:01:44.920 than competitors we saw. We also see Rivian up by 0:01:44.959 --> 0:01:48.280 six point three percent. Again focused on how perhaps evs 0:01:48.360 --> 0:01:51.000 can manage to be owning their own supply chain in 0:01:51.040 --> 0:01:53.520 this moment, unlike the likes of Ford of by two 0:01:53.600 --> 0:01:55.960 and a half percent, unlike the likes of gm are 0:01:56.000 --> 0:01:59.600 by six point eight percent, where they are significantly exposed 0:02:00.080 --> 0:02:03.360 to supply chains coming from Mexico and indeed from Canada. 0:02:03.560 --> 0:02:05.800 Let's tie us all together with a tech perspective. Mike 0:02:05.800 --> 0:02:08.600 Shephard joins us for more. And it is so interesting 0:02:08.639 --> 0:02:10.480 in the haves and the have nots. Right now, Mike, 0:02:10.760 --> 0:02:12.840 just tell us the update on what is going to 0:02:12.840 --> 0:02:14.679 be coming from the White House come April. 0:02:16.200 --> 0:02:19.160 Well, Donald Trump previewed some of that yesterday as he 0:02:19.320 --> 0:02:22.480 unfurled those auto tariffs that we were just talking about 0:02:22.520 --> 0:02:25.640 and their various impacts, and what we can expect on 0:02:25.680 --> 0:02:29.000 April second, what the President is calling Liberation Day is 0:02:29.040 --> 0:02:31.839 what he calls a round of reciprocal tariffs, and this 0:02:31.919 --> 0:02:35.320 is to try to even out the trading relationships in 0:02:35.360 --> 0:02:39.320 his view, with partners around the world. And these include 0:02:39.360 --> 0:02:43.600 countries that in the US position, put American exporters and 0:02:43.680 --> 0:02:47.240 products at a disadvantage when they are exported abroad, and 0:02:47.320 --> 0:02:49.440 he is trying to level the playing field in his 0:02:49.560 --> 0:02:52.200 view by imposing tariffs against those trading partners. 0:02:52.320 --> 0:02:53.440 It's some of the biggest. 0:02:53.160 --> 0:02:56.080 Targets that we're going to see or going to be 0:02:56.280 --> 0:02:59.440 the European Union and then other countries where there is 0:02:59.480 --> 0:03:02.120 some sort of imbalance. And for tech, one area of 0:03:02.160 --> 0:03:05.240 concern could of course be Taiwan. It's a key trading partner, 0:03:05.440 --> 0:03:08.520 but it also has a huge trade surplus with respect 0:03:08.520 --> 0:03:11.320 to the US. It also happens to be a major 0:03:11.440 --> 0:03:15.320 source of the semiconductors that Nvidia and AMD design but 0:03:15.400 --> 0:03:18.400 have produced by TSMC there So this is something the 0:03:18.440 --> 0:03:21.079 tech industry is going to be watching very closely. And 0:03:21.560 --> 0:03:25.600 I will add on semiconductors. Trump has also promised possibly, 0:03:25.680 --> 0:03:29.480 but he hasn't guaranteed levees on the imports of chips 0:03:29.520 --> 0:03:32.840 as well, possibly coming April second, but again we are 0:03:32.960 --> 0:03:36.240 uncertain about that. The autos tariffs were supposed to come 0:03:36.280 --> 0:03:39.520 April second, he moved them up by several days, so 0:03:39.760 --> 0:03:42.839 really we're in a wait and see mode there, Mike. 0:03:42.880 --> 0:03:44.800 I love how you broaden us out across all the 0:03:44.840 --> 0:03:47.560 industries that we look to potentially be impacted in the future. 0:03:47.720 --> 0:03:50.160 For right here, right now, let's go back to Auto's 0:03:50.360 --> 0:03:53.360 It's interesting that Tesla is being seen by the market 0:03:53.640 --> 0:03:57.360 as someone that has a protection from this sort of 0:03:57.360 --> 0:04:00.400 a tariff Levey, but Elon Musk himself posting that they 0:04:00.440 --> 0:04:02.240 are exposed. 0:04:01.800 --> 0:04:03.760 Just not to the tune of a GM or a Ford. 0:04:04.920 --> 0:04:08.280 Well, that's right, and they do have some insulation from it, 0:04:08.360 --> 0:04:11.080 mainly for two reasons. When you indicated at the top 0:04:11.120 --> 0:04:14.320 and talking about the market impact, they make all of 0:04:14.360 --> 0:04:18.840 their US sold vehicles in California and in Texas, they 0:04:18.880 --> 0:04:22.440 really have no exposure when it comes to finished cars 0:04:23.360 --> 0:04:26.040 and vehicles being brought into the United States, and even 0:04:26.040 --> 0:04:28.960 on the component side, in most of their vehicles they 0:04:29.000 --> 0:04:31.760 have at least sixty percent or up to seventy five 0:04:31.839 --> 0:04:34.960 percent depending on the model of components that are made 0:04:34.960 --> 0:04:37.240 here in the US. So they do have some insulation 0:04:37.480 --> 0:04:40.560 there and that offers them some protection from the worst 0:04:40.600 --> 0:04:44.200 of it compared to say rivals like Hyundai or GM. 0:04:44.240 --> 0:04:48.160 Even Mike, great, roundup, Thank you so much, bloom Meg's 0:04:48.160 --> 0:04:48.760 Mike Shephard. 0:04:49.360 --> 0:04:50.880 Let's continue the conversation with. 0:04:50.920 --> 0:04:53.920 Andrew Rodgers, Senior vice president at Boundary Stone Partners. It's 0:04:53.920 --> 0:04:56.760 a government affairs consulting firm focused on clean energy. Andrew, 0:04:56.800 --> 0:04:59.760 you've got well over twenty years of expertise and transportation 0:04:59.800 --> 0:05:03.600 in the structure and implementation of policy here. How much 0:05:03.640 --> 0:05:05.760 of an upending is this to the business models of 0:05:05.800 --> 0:05:08.120 evs and indeed auto makers boom broadly. 0:05:09.640 --> 0:05:11.600 Yeah, I mean, I don't think the effect can be 0:05:11.680 --> 0:05:16.000 understated here. The auto industry, much like the road in 0:05:16.640 --> 0:05:21.000 bridge building industry, relies on predictability, certainty, reliability. There's a 0:05:21.040 --> 0:05:23.040 reason that we fund roads and bridges on five year 0:05:23.080 --> 0:05:25.720 cycles because these are large projects that take a lot 0:05:25.760 --> 0:05:30.000 of predictability and investment over time. With the tariffs that 0:05:30.000 --> 0:05:33.200 were announced yesterday, you can just look across the automotive 0:05:33.200 --> 0:05:35.120 sector and already see the ripple effect that it is 0:05:35.160 --> 0:05:39.839 having with sales stock prices plunging across from multiple sectors, 0:05:40.000 --> 0:05:41.880 including hitting the Tier one suppliers. 0:05:42.320 --> 0:05:44.560 Now, I'll say that the underlying goal of. 0:05:44.520 --> 0:05:49.240 These tariffs is quite laudable to reshore domestic supply chains 0:05:49.279 --> 0:05:52.000 to build up manufacturing the United States, and there's a 0:05:52.040 --> 0:05:54.279 lot of policies that President Trump put in place in 0:05:54.279 --> 0:05:58.040 his first term that continued through the Biden administration. Now 0:05:58.040 --> 0:06:02.360 that having been said, the practical reality somewhat different. Automakers 0:06:02.360 --> 0:06:05.479 every led on global supply chains for decades, and the 0:06:05.560 --> 0:06:08.120 days of you know, a model T soup to nuts 0:06:08.200 --> 0:06:10.600 rolling off an assembly line in Highland Park, Michigan, are 0:06:10.600 --> 0:06:13.800 long gone and they're not coming back. And so, really 0:06:13.800 --> 0:06:16.880 automakers are faced with three tough choices right now. Either 0:06:16.920 --> 0:06:20.520 absorb these costs, pass them on to the consumers, or 0:06:20.560 --> 0:06:25.919 begin a years long, heavily investment reliant process of reshoring 0:06:25.960 --> 0:06:27.520 these automaker supply chains. 0:06:27.560 --> 0:06:30.159 Do they have the confidence to take the third option, 0:06:30.640 --> 0:06:33.279 to recommit and to spend that sort of money when 0:06:33.680 --> 0:06:37.719 terms about four years, I think the. 0:06:38.000 --> 0:06:39.160 Word of the day is uncertainty. 0:06:39.839 --> 0:06:42.560 And the fact is is that there was a reason 0:06:42.600 --> 0:06:45.279 that the ev sector saw nearly three hundred million dollars 0:06:45.360 --> 0:06:47.800 give me three hundred million dollars of investment in just 0:06:47.839 --> 0:06:49.839 the last couple of years. They were getting clear signals 0:06:49.880 --> 0:06:53.880 from Washington through the Biparson Infrastructure Law, through the investment, 0:06:54.080 --> 0:06:57.800 through the Inflation Reduction Act, through the Chips Act, and 0:06:57.880 --> 0:07:00.360 seventy percent of that three hundred billion dollar invest is 0:07:00.400 --> 0:07:03.000 already specifically allocated to facilities that. 0:07:02.960 --> 0:07:04.000 Are coming online. 0:07:04.440 --> 0:07:08.160 When you have what seems to be somewhat more reactionary 0:07:08.160 --> 0:07:11.560 and less targeted tariffs and other trade policies coming online, 0:07:11.880 --> 0:07:15.480 it's much more difficult to have that confidence to begin 0:07:15.560 --> 0:07:18.520 reshoring supply chains and for fears of a whipsaw in 0:07:18.560 --> 0:07:20.280 a different direction in a couple of years. 0:07:20.480 --> 0:07:23.880 It's interesting that, of course, the market is understanding and 0:07:23.960 --> 0:07:26.680 trading on the idea that Tesla is more insulated, that 0:07:26.760 --> 0:07:28.120 Rivian is more insulated. 0:07:28.520 --> 0:07:30.040 But many had put. 0:07:29.920 --> 0:07:32.880 Research out there that ultimately the price the average price 0:07:32.920 --> 0:07:35.320 of a car is going to go up five to 0:07:35.400 --> 0:07:37.840 eight thousand dollars, but for an EV it's going to 0:07:37.880 --> 0:07:40.800 go up twelve thousand dollars. And I'm interested as to 0:07:41.000 --> 0:07:43.880 how the supply chains, particularly with electric vehicles, are being 0:07:44.160 --> 0:07:47.560 an issue here considering it's so dependent for magnets for 0:07:47.920 --> 0:07:50.160 rare earths and minerals from abroad. 0:07:52.360 --> 0:07:53.160 Two points there. 0:07:53.560 --> 0:07:55.800 So the first I would just maybe put Tessela in 0:07:55.800 --> 0:07:58.320 a slightly different category. I think it's stock is long 0:07:59.040 --> 0:08:03.400 traded on prices, maybe untethered from fundamentals, so we'll put 0:08:03.400 --> 0:08:05.760 that in a slightly different space. But I think the 0:08:05.760 --> 0:08:09.240 broader points on the EV industry is it is in 0:08:09.240 --> 0:08:13.000 many ways different than your traditional internal combustion engine manufacturers, 0:08:13.480 --> 0:08:15.280 and so the ribbeans and the tuzzles the world do 0:08:15.360 --> 0:08:17.760 have a leg up on the legacy automakers who are 0:08:18.040 --> 0:08:21.280 developing these these supply chains online. And that investment that 0:08:21.360 --> 0:08:23.480 I just spoke to, the three hundred billion dollars plus 0:08:23.480 --> 0:08:26.400 in the last couple of years, that was the legacy 0:08:26.440 --> 0:08:30.520 automakers beginning that work. And so yes, I think that 0:08:30.280 --> 0:08:34.480 that investment will continue. But if you're talking about raising 0:08:34.520 --> 0:08:37.880 costs because of teriffs, which can reduce demand ultimately leave 0:08:37.960 --> 0:08:41.200 more cars on the lots, that can impact jobs, that 0:08:41.240 --> 0:08:44.960 can cause contraction in the industry, and that can ultimately 0:08:45.000 --> 0:08:47.920 diminished demand, which sends the absolute wrong signal at a 0:08:47.960 --> 0:08:49.719 time when those industries are looking to. 0:08:49.720 --> 0:08:53.640 Invest Andrew, You've been the Deputy Federal Highway Administrator, You've 0:08:53.640 --> 0:08:56.360 worked within government, You've been chief counsel on Federal Highways, 0:08:56.400 --> 0:08:59.440 You've been You've got such a wealth of experience here. 0:08:59.480 --> 0:09:02.040 I'm sure you're building plenty of calls when you get 0:09:02.080 --> 0:09:04.679 off air. What is the number one question that you're 0:09:04.720 --> 0:09:06.880 being taken right now from the industry? 0:09:09.400 --> 0:09:09.920 Is this real? 0:09:10.360 --> 0:09:14.120 Is this actually going to happen? Is this the new reality? 0:09:14.160 --> 0:09:15.920 And I think the answer is is that. Look, if 0:09:15.920 --> 0:09:18.520 you take the president at face value, and I'm doing 0:09:18.600 --> 0:09:22.320 that more and more in the second administration, I think 0:09:22.360 --> 0:09:25.400 we need to look at the long term and short 0:09:25.480 --> 0:09:29.720 term effects of these policies and plan for what is 0:09:29.760 --> 0:09:32.680 being stated publicly to take root in some way, shape 0:09:32.760 --> 0:09:35.560 or form. But I think the book is still being 0:09:35.559 --> 0:09:37.960 written on exactly what form that looks like. 0:09:38.400 --> 0:09:41.560 Andrew Rogers trying to help us navigate this uncertainty boundary 0:09:41.600 --> 0:09:42.720 Stone Partners, you. 0:09:42.760 --> 0:09:44.080 Appreciate it now. 0:09:44.080 --> 0:09:46.720 The Trump administration is also just cut twenty million dollars 0:09:46.720 --> 0:09:49.880 in funding for the agency responsible for chip export controls. 0:09:50.080 --> 0:09:52.640 That's about ten percent of the Commons Department's Bureau of 0:09:52.679 --> 0:09:56.720 Industry and Security budget. Democratic senators well, they've criticized the moved, 0:09:56.840 --> 0:09:59.880 warning it could undermine US efforts to stay ahead at 0:09:59.920 --> 0:10:04.839 you and the AI race and compromise national security. Coming up, 0:10:05.200 --> 0:10:08.200 core Weave is said to plan a reduction in its 0:10:08.240 --> 0:10:09.400 IPO size. 0:10:09.559 --> 0:10:10.280 We're on that next. 0:10:10.400 --> 0:10:14.480 It's a rumor technology. 0:10:21.720 --> 0:10:24.920 Cor Weave it intends to cut the size of its 0:10:24.960 --> 0:10:27.600 IPO to around one and a half billion dollars raised. 0:10:27.760 --> 0:10:28.760 That's according to sources. 0:10:28.800 --> 0:10:31.600 Now, the cloud computing provider will instead offer investors about 0:10:31.600 --> 0:10:33.680 thirty seven and a half million shares at a forty 0:10:33.720 --> 0:10:36.839 dollars price point. That's down from initial plans of forty 0:10:36.960 --> 0:10:40.560 nine million shares at forty seven to fifty five dollars each. 0:10:40.920 --> 0:10:43.840 For more of billiombergs, Ryan Gould joins us for more. Look, 0:10:43.920 --> 0:10:45.960 it is about a month ago that we were talking 0:10:46.000 --> 0:10:49.680 about a four billion dollar raise in new money for 0:10:49.760 --> 0:10:51.480 core Weave, and now we more than half that. 0:10:52.080 --> 0:10:53.800 Yeah, I mean, I think I would say at the 0:10:53.840 --> 0:10:57.079 outset that this is still a very fluid situation. You know, 0:10:57.200 --> 0:10:59.280 Kreweve is not meant to start trading until tomorrow, so 0:10:59.400 --> 0:11:02.000 anything can all happen. But certainly the sources that we 0:11:02.000 --> 0:11:03.480 were talking to this morning are saying that you know, 0:11:03.520 --> 0:11:06.199 the company was considering looking and cutting the rays down 0:11:06.240 --> 0:11:08.960 to one point five billion dollars. That would take the 0:11:09.000 --> 0:11:12.800 fully diluted valuation back to somewhere similar to its last 0:11:12.880 --> 0:11:16.360 public round that was reported, So that would be around 0:11:16.360 --> 0:11:19.240 twenty three billion dollars in a fully diluted basis. That 0:11:19.360 --> 0:11:21.120 is quite the cut when you think about what we 0:11:21.120 --> 0:11:22.880 were talking about maybe a month or so ago, and 0:11:22.920 --> 0:11:26.200 when there was some more exuberance in the market around 0:11:26.240 --> 0:11:29.559 this kind of trait. This is AI, this was data centers. 0:11:29.559 --> 0:11:31.400 These are kinds of all the tailwinds that you'd be 0:11:31.400 --> 0:11:34.280 thinking about positively coming into an IPO that is meant 0:11:34.320 --> 0:11:35.480 to be one of the biggest of the year. 0:11:35.760 --> 0:11:36.679 It's interesting that. 0:11:36.640 --> 0:11:39.200 They sort of can't stop this IPO train and a 0:11:39.280 --> 0:11:42.280 moment where in Realdio's down twenty five percent from its high, 0:11:42.280 --> 0:11:44.520 so we've see market valuations wiped out for Microsoft more 0:11:44.520 --> 0:11:46.400 than ten percent, and ultimately in the NAS that one 0:11:46.480 --> 0:11:49.040 hundred is in correction territory, No wonder it's going to 0:11:49.040 --> 0:11:52.400 struggle at this moment. Would they ever think about changing 0:11:52.440 --> 0:11:54.800 direction because this just seems to be the wrong time. 0:11:55.080 --> 0:11:57.720 Yeah, I think, you know, based on what we understand 0:11:57.760 --> 0:11:59.240 as of right now, and again I just do want 0:11:59.240 --> 0:12:01.959 to preface nevers that it is still fluid, but as 0:12:02.000 --> 0:12:03.760 of right now, we're not under the impression that they're 0:12:03.760 --> 0:12:05.560 going to pull this thing. So I think Corey will 0:12:05.559 --> 0:12:08.240 trade at some point, and we'll be watching tomorrow obviously 0:12:08.280 --> 0:12:10.800 to see where it exactly trades and opens that. But 0:12:10.960 --> 0:12:12.520 as of right now, I think one of the other 0:12:12.520 --> 0:12:14.640 big things that they've obviously looked towards this morning is 0:12:14.679 --> 0:12:17.559 that in Vidia, who is obviously already a big customer 0:12:17.559 --> 0:12:20.040 relationship of kor we've is going to come in with 0:12:20.280 --> 0:12:23.160 quite a significant anchor order. That anchor order is going 0:12:23.200 --> 0:12:25.000 to be worth around two hundred and fifty million dollars 0:12:25.679 --> 0:12:28.400 at forty dollars a share, And that's what we're reporting, 0:12:28.480 --> 0:12:30.040 That's what you know some others have reported, and I 0:12:30.040 --> 0:12:32.160 think that just gives you some kind of indication as 0:12:32.200 --> 0:12:34.480 to exactly kind of some of the momentum that is 0:12:34.480 --> 0:12:36.520 required to get a trade like this over the line 0:12:36.559 --> 0:12:37.199 in this market. 0:12:37.320 --> 0:12:39.720 But it speaks in videos perhaps own anxiety that this 0:12:39.880 --> 0:12:42.960 just feeds into some of the negative headlines the AI 0:12:43.080 --> 0:12:44.600 bubble anxiety that's been brewing. 0:12:44.600 --> 0:12:46.479 We've had Josi or Ali Baba. 0:12:46.240 --> 0:12:46.800 Warn about it. 0:12:46.920 --> 0:12:50.719 You've even had TV Cowan continuing to tell us that 0:12:51.040 --> 0:12:54.679 Microsoft is pulling back on data center demand. Well, they're 0:12:54.720 --> 0:12:56.400 a key customer of Corwave, right. 0:12:56.360 --> 0:12:58.360 Yeah, I mean seventy seven percent of the revenue was 0:12:59.080 --> 0:13:01.160 of Corey've lost it two customers, one of which you're 0:13:01.160 --> 0:13:03.240 the main one was Microsoft. So you know, in a 0:13:03.280 --> 0:13:05.480 week when td cown is coming out and saying stuff 0:13:05.520 --> 0:13:07.760 like that, I think, you know, if your core weave, 0:13:07.840 --> 0:13:10.720 that's probably not very helpful to you. But again, you know, 0:13:10.760 --> 0:13:12.800 investors are going to make a take of you, and 0:13:12.840 --> 0:13:14.560 there's going to be value. They're going to be constructive 0:13:14.600 --> 0:13:16.920 on value at certain points. And I think this indication 0:13:17.000 --> 0:13:19.079 this morning that we've had that they're potentially considering the 0:13:19.160 --> 0:13:22.040 downsize at forty a share, I think, you know, there's 0:13:22.040 --> 0:13:24.440 clearly strength and so I'm sure that they're going to 0:13:24.440 --> 0:13:26.560 feel like they can come out and get this over 0:13:26.600 --> 0:13:27.800 the line in some shape or form. 0:13:28.000 --> 0:13:31.199 JP Morgan Goldman having to earn their money on this one, 0:13:31.320 --> 0:13:34.760 it seems wrangled. Thanks so much now sticking with going 0:13:34.800 --> 0:13:38.520 public look social platform Discord also said to be working 0:13:38.520 --> 0:13:40.120 with the likes of Goldman, Sacks and JP Morgan on 0:13:40.160 --> 0:13:42.960 a potential IPO. It's according to sources, the company could 0:13:43.000 --> 0:13:45.839 seek a listing as soon as this year. Discord's popularity, 0:13:45.880 --> 0:13:48.640 of course, saw during pandemic times, and the company even 0:13:48.679 --> 0:13:51.199 rejected a twelve billion dollar takeover from Microsoft back in 0:13:51.240 --> 0:13:54.600 twenty twenty one. I mean, while Flexport also saying it's 0:13:54.640 --> 0:13:57.320 still aiming to go public despite missing its profitability tar 0:13:57.400 --> 0:13:59.360 getting twenty twenty four, it's all according to The Wall 0:13:59.360 --> 0:14:03.080 Street Journal, Like Discord, the tech focused freight company saw 0:14:03.200 --> 0:14:06.400 strong demand during the pandemic said it extended its timeline 0:14:06.400 --> 0:14:10.440 to reach profitability. Let's get another check on AI optimism 0:14:10.520 --> 0:14:12.680 right now, because open ai is set to be close 0:14:12.720 --> 0:14:16.839 to finalizing a whopping forty billion dollar funding round than 0:14:16.840 --> 0:14:17.480 by soft Bank. 0:14:17.760 --> 0:14:18.000 So all. 0:14:18.000 --> 0:14:21.200 According to sources, the deal would set potentially the value 0:14:21.240 --> 0:14:23.760 of the company of three hundred billion, almost double its 0:14:23.800 --> 0:14:27.680 valuation back in October. For more, Bloomberg's Kate Clarks helps 0:14:27.680 --> 0:14:29.960 break it down. It's so interesting that an IPO we're 0:14:29.960 --> 0:14:33.480 all worrying about, well, the private market, SoftBank and others 0:14:33.560 --> 0:14:35.440 just really committing to open Ai at this time. 0:14:35.560 --> 0:14:37.600 Yes, there are still a lot of craziness happening on 0:14:37.600 --> 0:14:39.600 the private markets when it comes to AI, is still 0:14:39.640 --> 0:14:43.200 a lot of optimism, and the optimism being inflated in 0:14:43.240 --> 0:14:45.600 many ways by the latest release coming from open Ai. 0:14:45.680 --> 0:14:49.360 We are so fixated about their image generator, proving that 0:14:49.400 --> 0:14:53.160 they can be accessible for business cases, personal cases, and 0:14:53.280 --> 0:14:54.960 we've seen that their revenues have been on the up 0:14:54.960 --> 0:14:55.320 and up. 0:14:55.280 --> 0:14:58.120 Right exactly, They're expected to triple revenue this year, and 0:14:58.160 --> 0:15:01.280 they have some wild and perhaps outline projections for the 0:15:01.280 --> 0:15:04.800 coming years. But this is exactly why investors are still very, 0:15:04.880 --> 0:15:08.240 very very optimistic and excited about funding the company, despite 0:15:08.280 --> 0:15:12.040 the fact that it has massive, massive expenses, including talent, 0:15:12.440 --> 0:15:15.720 data centers of course, and the very very expensive AI chips. 0:15:15.960 --> 0:15:17.840 What's interesting is the crossover of investor base. 0:15:18.040 --> 0:15:21.520 Like magnetah is we understand committing more to open Ai, 0:15:21.680 --> 0:15:23.760 it's also an investoring call weave, but for this one, 0:15:23.760 --> 0:15:25.600 it's all about soft Bank. Well, they're going to commit 0:15:25.640 --> 0:15:28.040 basically thirty billion of the forty billion. 0:15:27.920 --> 0:15:30.320 Yes, exactly, So soft Bank is the major player here. 0:15:30.440 --> 0:15:33.480 They are funding a very large portion of this round. 0:15:33.680 --> 0:15:35.720 But as you said, there are also very many hedge 0:15:35.720 --> 0:15:38.440 funds that are participating. There are venture capital funds including 0:15:38.760 --> 0:15:41.320 Altimeter and COO TOW, which are crossover funds, but they 0:15:41.360 --> 0:15:45.240 are expected to participate. And then you have probably sovereign 0:15:45.280 --> 0:15:47.400 wealth funds from all over the world that have already 0:15:47.400 --> 0:15:50.000 funded open AI and that are expected to continue funding 0:15:50.040 --> 0:15:52.640 open AI and give us. 0:15:52.760 --> 0:15:55.760 The ultimate view that this is a company that continues 0:15:55.800 --> 0:15:59.760 to expand and continues to weather what is public market anxiety. 0:16:00.000 --> 0:16:01.920 They're not thinking that this company is gonna go public 0:16:01.960 --> 0:16:03.960 in the nig future. 0:16:04.120 --> 0:16:05.640 No, I think there's a lot of questions about that. 0:16:05.680 --> 0:16:07.440 But they do expect that this is the next trillion 0:16:07.440 --> 0:16:09.320 dollar company, This is the next Google, this is the 0:16:09.320 --> 0:16:12.160 next MATA. That is the bet that these these investors 0:16:12.200 --> 0:16:14.280 are making, and a soft Bank the bet is also 0:16:14.320 --> 0:16:16.960 to become one of the most influential players in global 0:16:17.520 --> 0:16:21.320 artificial general intelligence in the race toward AGI. SoftBank wants 0:16:21.360 --> 0:16:22.400 to have that front row seat. 0:16:22.680 --> 0:16:24.480 And we've seen them make excisions of them here and 0:16:24.520 --> 0:16:27.600 of course they're also they're making They're making moose Massa 0:16:27.720 --> 0:16:31.040 is always making moose Cake. Clark, we so appreciate having 0:16:31.120 --> 0:16:42.040 her on technology provide a. Lumina is expanding its partnerships 0:16:42.080 --> 0:16:45.640 beyond car makers. The developer of Liedar Hardware and Software 0:16:45.760 --> 0:16:48.640 has a new deal with construction equipment manufacturer Caterpillar. 0:16:48.920 --> 0:16:51.240 Luminar's CEO, Austin Russell, joins us. 0:16:51.320 --> 0:16:55.240 Your shares pushing higher on the news, Austin and why 0:16:55.320 --> 0:16:57.160 make this move into industrial? 0:16:59.200 --> 0:17:01.760 Yes, so, no, it's excited to be hearing. Thanks for 0:17:01.760 --> 0:17:04.440 having me as part of this. I think it makes 0:17:04.480 --> 0:17:06.960 total sense as the market. You know, we're coming hot 0:17:06.960 --> 0:17:08.879 off the heels of a couple of major you know, 0:17:08.920 --> 0:17:12.479 automotive launches with Volvo now getting the product into production, 0:17:12.560 --> 0:17:14.760 to the technology for these light our systems you know, 0:17:15.160 --> 0:17:18.159 and AI related systems going into the market, and we 0:17:18.200 --> 0:17:21.760 can leverage that towards these industrial automation markets, you know. 0:17:21.800 --> 0:17:24.400 I mean it's what on the order of industrial automation 0:17:24.400 --> 0:17:26.199 on the ear of a two hundred billion dollar a 0:17:26.280 --> 0:17:29.280 year industry today and this is a big foray into 0:17:29.320 --> 0:17:31.919 it for us, you know. So being able to have 0:17:32.000 --> 0:17:36.880 Caterpillar as the leading provider of and manufacturer of industrial equipment. 0:17:36.920 --> 0:17:40.199 More broadly, selecting Luminar to partner with to make this 0:17:40.280 --> 0:17:44.000 happen as part of their next generation platform is something 0:17:44.040 --> 0:17:46.879 that just makes total sense as we expand beyond the 0:17:46.920 --> 0:17:51.000 auto market. But again leveraging those same capabilities, technology and 0:17:51.040 --> 0:17:54.359 products as what we've been making for the automotive market, 0:17:54.480 --> 0:17:56.880 and you know, there's a huge amount of value to. 0:17:56.800 --> 0:17:59.320 Be created now they're going to the cap off highway 0:17:59.320 --> 0:18:02.159 trucks for exils. But this doesn't anyways speak to a 0:18:02.280 --> 0:18:04.760 lack of commitment in the av space. You still push 0:18:04.800 --> 0:18:06.000 you ahead as hard as ever there. 0:18:07.119 --> 0:18:07.960 Oh absolutely. 0:18:08.160 --> 0:18:11.200 I mean just this year alone, we're going to be 0:18:11.240 --> 0:18:14.199 seeing what two hundred and three hundred percent you know, 0:18:14.320 --> 0:18:17.479 growth in the automotive space for what it relates to 0:18:17.640 --> 0:18:21.200 our light, our production and shipments you know, globally to 0:18:21.240 --> 0:18:24.720 these different automakers. So that's something that we're really excited 0:18:24.760 --> 0:18:26.840 about and pushing full speed ahead on to get those 0:18:26.840 --> 0:18:30.880 economies of scale and get that ramped up. But in parallel, 0:18:31.160 --> 0:18:33.359 it makes total sense of to be able to capitalize 0:18:33.359 --> 0:18:37.400 on markets like this as auto continues to be able 0:18:37.400 --> 0:18:40.439 to ramp up in order to be able to I 0:18:40.440 --> 0:18:44.720 would say, have that same mission around safety and autonomy 0:18:45.560 --> 0:18:48.080 in a very high value add way. And of course 0:18:48.119 --> 0:18:51.480 the ASPS and sales price that we're able to get 0:18:51.480 --> 0:18:54.560 in the industrial markets is actually a multiple for the 0:18:54.560 --> 0:18:56.879 same products in capabilities is what it is in the 0:18:56.920 --> 0:18:57.520 auto market. 0:18:57.760 --> 0:19:01.040 So it just makes and is that the average selling 0:19:01.080 --> 0:19:04.119 price is that because of a lack of competition. We 0:19:04.200 --> 0:19:06.679 just think at the moment, the anxiety around your company, 0:19:06.720 --> 0:19:10.880 your stock has been Chinese competition in particular, and when 0:19:10.920 --> 0:19:13.680 it comes to, for example, reporting the Mercedes is going 0:19:14.000 --> 0:19:18.120 with a Chinese competitor, are those the narrative is true? 0:19:18.920 --> 0:19:22.520 Well, first of all, I think taking a step back 0:19:22.560 --> 0:19:24.800 a little bit, you can give China certainly a credit 0:19:24.800 --> 0:19:26.840 for a lot of early adoption when it comes to 0:19:27.000 --> 0:19:29.040 you know, the Chinese market and light our market where 0:19:29.040 --> 0:19:30.760 you now have you know what on the order of 0:19:30.760 --> 0:19:34.000 a million vehicles being shipped, you know, with light Ar 0:19:34.280 --> 0:19:37.440