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Speaker 1: From the heart of where innovation, money and power colli

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay I'm Emily changing San Francisco in this Bloomberg

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Speaker 1: Technology coming up in the next hour. Elon Musk tries

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Speaker 1: to back out of the billion dollar Twitter deal again.

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Speaker 1: Turner projects him again. All this a day before the

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Speaker 1: whistleblower is scheduled to testify on Capitol Hill. How could

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Speaker 1: that change? The trial will discuss claus streaming platforms going

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Speaker 1: all out for sports broadcast rights, a conversation with Amazon's

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Speaker 1: global sports video vice president on its big ticket deal

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Speaker 1: for Thursday Night football, and Morley some making bets on

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Speaker 1: the blockchain and n f E t startup backed by

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Speaker 1: Serena Williams just got a big deal with the NBA.

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Speaker 1: We're going to talk to a top execut at so

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Speaker 1: rare later this hour. All of that in a moment,

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Speaker 1: but first, let's talk a little bit more about Twitter.

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Speaker 1: Musk now Twitter rejecting that latest effort to cancel the

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Speaker 1: deal yet again, saying it's quote invalid and wrongful. His

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Speaker 1: third attempt to walk away from this deal and third

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Speaker 1: times not the charm that whistleblower former Twitter employee Peter

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Speaker 1: zat co A K A. Mudge, testifies before the Senate

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Speaker 1: Judiciary Committee Tuesday. Here discuss s Bloomberg's Jeff Feely in Wilmington, Delaware,

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Speaker 1: and Alex Barnka in San Francisco. So, Alex, first of all,

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Speaker 1: what are we expecting to hear from Peter zat COO

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Speaker 1: on Capitol Hill tomorrow? Yeah, so I think that that

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Speaker 1: the hearing tomorrow will probably follow two lanes of conversation.

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Speaker 1: There'll be questions around the data privacy concerns, around the

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Speaker 1: bots and fake at counts that Zacho has alleged that

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Speaker 1: the company either ignored or didn't disclose. But I also

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Speaker 1: expect the Senate Judiciary Committee to focus on some more

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Speaker 1: of the data privacy issues that legislators care about. Um

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Speaker 1: that might be a little less relevant to the acquisition,

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Speaker 1: but increasingly relevant as d C has been able to

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Speaker 1: push through antitrust legislation but has not gotten a lot

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Speaker 1: of traction on data privacy, So they might take this

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Speaker 1: opportunity to lean into some of those themes as well. Now,

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Speaker 1: Jeff Elon Musk is trying to use new information that

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Speaker 1: Twitter signed a seven million dollar separation agreement with Peter

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Speaker 1: zach Co back in June. Must trying to use that

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Speaker 1: as a reason to cancel the deal. You know what

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Speaker 1: exactly is he trying to say here, Well, he's basically

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Speaker 1: saying that that payment constituted something outside the ordinary course

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Speaker 1: of business. When you have these buyout agreements going on,

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Speaker 1: one of the provisions it's often in there says that

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Speaker 1: the seller has to continue to run the business in

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Speaker 1: the ordinary course. Mr musk contention is this seven million

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Speaker 1: dollar severance payment was somehow tied to silencing Mr Zacho

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Speaker 1: so that he would not bring forth his his complaints publicly,

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Speaker 1: so that that, he claims, is another reason that there's

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Speaker 1: been a material adverse event and he should be able

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Speaker 1: to cancel the deal. It don't sound like a lot

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Speaker 1: of money, seven million dollars to get this guy to

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Speaker 1: go away, Alex and then he ends up, you know,

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Speaker 1: blowing the whistle. Anyway, Can you tell us a little

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Speaker 1: bit more about what happened here between Zacho and Twitter? Yeah, Emily,

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Speaker 1: the sticker shark that you're having might be some of

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Speaker 1: the reason why Musk feels like he can lean into

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Speaker 1: this as an argument that um, this type of settlement

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Speaker 1: should have been brought to his camp and his outside

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Speaker 1: the regular course of business. So this was a guy

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Speaker 1: who was an executive on the security side, was brought

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Speaker 1: in um number of years back and oversaw a lot

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Speaker 1: of the important kind of security pieces and the teams

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Speaker 1: that worked on those things internally at Twitter. So um,

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Speaker 1: he is a person who you know, claims that he

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Speaker 1: has kind of insider knowledge on this. The company says, well, look,

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Speaker 1: you could have actually made some changes on these things.

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Speaker 1: So there's an interesting um kind of back and forth here, Emily,

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Speaker 1: I will point out, Um, it has been reported that

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Speaker 1: in that settlement agreement he was still allowed to blow

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Speaker 1: the whistle um to to govern to the government if

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Speaker 1: there were any issues. So um, seven million dollars definitely

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Speaker 1: sticker shock um definitely Uh that kind of third strike

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Speaker 1: that Ellen is claiming allows him to get out of

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Speaker 1: the deal. Um, but did leave that door open for

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Speaker 1: us to hear from Peter Zacho tomorrow morning. Now Jeff

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Speaker 1: has to judge weigh in on this latest request from

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Speaker 1: Musk and this latest information about the separation agreement, and

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Speaker 1: if not, what are we going to hear from her? Well,

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Speaker 1: the judge has allowed Mr Musk to amend his counterclaims

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Speaker 1: in the case to add the whistleblowers allegations. I want

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Speaker 1: to point out that the seven million dollar payment may

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Speaker 1: be contractual. We do not know if this was per

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Speaker 1: a severance agreement with Mr Zach Coo, so I wouldn't

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Speaker 1: automatically recoil at the seven million dollar number. We still

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Speaker 1: need to find out what that's all about. I doubt

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Speaker 1: we're gonna learn that tomorrow either. So how are you

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Speaker 1: expecting this testimony from Zach Coo tomorrow to be folded

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Speaker 1: into the case that, of course was building up to

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Speaker 1: this child coming up in mid October. Jeff his his

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Speaker 1: testimony tomorrow about the national security stuff and potential spies

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Speaker 1: within Twitter's employee uh group are the things that the

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Speaker 1: senators are gonna be focusing on. The folks that that

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Speaker 1: we're concerned about is going to be his his allegation

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Speaker 1: that he raised the question of at how many spam

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Speaker 1: and robot accounts were embedded within the customer base and

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Speaker 1: the Twitter his colleagues lack of interest in finding that out.

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Speaker 1: That's the key question in the trial coming up, because

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Speaker 1: that's where Mr Musk has put all his chips. In

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Speaker 1: terms of defense arguments, well, clearly both parties are gonna

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Speaker 1: be watching this, this testimony with bated breath, Uh, Alex

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Speaker 1: any word from Twitter about the latest salvo or how

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Speaker 1: any of this potentially changes their plans. So they basically

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Speaker 1: came out and said, look, we don't buy the argument

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Speaker 1: that the separation agreement um is a viable excuse. UM.

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Speaker 1: I know that the Twitter camp will also be watching

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Speaker 1: this very closely as well a lot of the shareholders

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Speaker 1: who are potentially making their voices heard in the shareholder

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Speaker 1: vote tomorrow. UM. I would think if things go really

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Speaker 1: far down the line of privacy concerns, if there's a

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Speaker 1: lot of kind of intra us in the data security

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Speaker 1: piece that are unrelated to the acquisition, that would just

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Speaker 1: be another thing to add to the list of Twitter

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Speaker 1: CEO is kind of big ticket items to care about.

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Speaker 1: Twitter has not been brought into d C as often

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Speaker 1: as a lot of the larger social media appears. UM.

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Speaker 1: So I think, uh, internally, you could argue there's a

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Speaker 1: lot of distractions going on at the company right now,

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Speaker 1: and if they do get some traction UM. In terms

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Speaker 1: of legislators arguments that data privacy should be more important

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Speaker 1: than Emily. I would add that to the list of

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Speaker 1: kind of some of these ancillary concerns that are outside

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Speaker 1: of just operating the business. All right, Alex Brenka Jeff Phey,

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Speaker 1: continuing to cover this evolving legal drama for us. Thank

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Speaker 1: you both for joining us. Meantime, a story that we

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Speaker 1: continue to watch. Intel is scaling back expectations for its

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Speaker 1: mobile i i p O. According to Bloomberg sources, the

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Speaker 1: move could delay the share sale until next year if

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Speaker 1: market conditions don't improve. Intel expects the i p about

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Speaker 1: to value the self driving tech business as much as

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Speaker 1: thirty billion dollars. Warders and others reported earlier potential valuations

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Speaker 1: of more than fifty billion dollars. All right, coming up,

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Speaker 1: how Amazon and other streaming giants are disrupting one of

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Speaker 1: the bastions of traditional television, that is sports broadcasting. Right

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Speaker 1: to top, Amazon executive with us next. This is Bloomberg.

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Speaker 1: It is a historic week for sports broadcasting. This Thursday,

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Speaker 1: Amazon Prime Video kicks off in eleven year thirteen billion

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Speaker 1: dollar deal. This is the first time a streaming service

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Speaker 1: has had exclusive rights to NFL games in the United States,

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Speaker 1: and a big challenge to major networks. Amazon told advertisers

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Speaker 1: it expects an average audience of twelve point six million

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Speaker 1: viewers per game. This according to The Wall Street Journal.

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Speaker 1: Vice President of Amazon Global Sports Video Marie john A.

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Speaker 1: Hue is the architect of Amazon's Lives Force ambitions, and

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Speaker 1: she joins us now to discuss So a huge week

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Speaker 1: Marie for Amazon. Uh and for the first time, fans

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Speaker 1: are gonna have to log onto Amazon Prime Video to

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Speaker 1: see this big game on Thursday nights. Does this seem

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Speaker 1: like a turning point to you in sports broadcasting? Absolutely?

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Speaker 1: I mean, I look, honestly, I think this will be

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Speaker 1: as big as when the NFL went to cable back

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Speaker 1: in nine seven. You know, we know how NFL games

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Speaker 1: legitimized and grew the cable cable business, and we think

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Speaker 1: the same thing can happen for streaming. So you lead

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Speaker 1: negotiations for this thirteen billion dollar, eleven year deal. It

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Speaker 1: is a massive deal. How did you convince the NFL

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Speaker 1: that Amazon was the place to be, right, Well, you know,

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Speaker 1: the NFL cares important, cares a lot about scale and reach,

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Speaker 1: and we've got that. We've got that better than any

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Speaker 1: better than any other's dreaming service. They also care about production,

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Speaker 1: and they knew we we showed in Europe and we

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Speaker 1: also showed by our work in the US that we

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Speaker 1: can produce the best broadcast for fans. It's incredibly important

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Speaker 1: to them and one of the most exciting things for

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Speaker 1: me is they care about innovation. You know, the the

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Speaker 1: NFL has been able to stay top of mind for

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Speaker 1: sports fans for decades because they innovate and they move

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Speaker 1: forward and they have that confidence and that that's the

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Speaker 1: biggest That was one of the biggest tenants in our

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Speaker 1: deal with the NFL. We agreed to push each other

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Speaker 1: and to continue to push each other on innovating on

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Speaker 1: behalf of sports fans, and it's something that's personally really

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Speaker 1: exciting and and something that really excites the team. What

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Speaker 1: are your goals with audience numbers? I understand we've got

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Speaker 1: this Wall Street Journal number that you're expecting twelve point

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Speaker 1: six million viewers. Is that correct? Um? I also understand

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Speaker 1: the typical viewership is more like sixteen and a half million.

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Speaker 1: Are you hoping or thinking that you can get there

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Speaker 1: or bigger? Right? Well, you know, our number one focus

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Speaker 1: is delivering the absolute best broadcast for fans and the

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Speaker 1: trends are in our favor. Everyone knows that more and

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Speaker 1: more fans, particularly sports fans, are moving to streaming. Thinks

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Speaker 1: this won't happen overnight. This is an eleven year deal,

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Speaker 1: but we feel really strongly that if you start with fans,

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Speaker 1: you serve the fans, they will come. And so we're excited.

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Speaker 1: We we had our preseason game two weeks ago and

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Speaker 1: the reaction from fans was just fabulous, and we're really

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Speaker 1: excited to get on the field this Thursday. Thursday, the

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Speaker 1: Chargers taken on the Kansas City Chiefs. UM. Talk to

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Speaker 1: us then about how this benefits Amazon more broadly. You

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Speaker 1: know what what's gonna be your measure of success. Is

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Speaker 1: it driving audience numbers? Is it driving more Prime memberships?

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Speaker 1: Is it getting more customers to buy more Amazon products? Yeah? Absolutely,

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Speaker 1: So I hate to sound repetitive, but at Amazon, we

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Speaker 1: start with customers. I call them sports fans, and so

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Speaker 1: number one, we think we serve sports fans better. We

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Speaker 1: can serve customers better. But if we wouldn't be in this,

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Speaker 1: if we didn't think we could improve the experience and

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Speaker 1: make it better for fans. But absolutely, as you said, Emily,

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Speaker 1: they're great business opportunities here. Number one, we're Prime. Prime

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Speaker 1: Video is a membership service, so we can attract more

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Speaker 1: members to Prime. There are plenty of people who have

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Speaker 1: Prime who maybe have don't even haven't streamed video on

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Speaker 1: Prime Video. And then there are other folks who come

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Speaker 1: in for Thursday night football and find things like Lord

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Speaker 1: of the Rings. So we think, particularly in the Prime

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Speaker 1: membership opportunity is huge. We think that opportunity is huge

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Speaker 1: for us. And you know, we haven't even talked about advertising.

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Speaker 1: You know, advertising, This is a game change for advertising

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Speaker 1: for at Amazon. We have a very strong business already,

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Speaker 1: but you can't beat this is the most premium video

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Speaker 1: advertising inventory out there. So it's a huge game changer

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Speaker 1: for us in terms of advertising. So how do you

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Speaker 1: plan to leverage targeted advertising and do some things differently

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Speaker 1: that maybe a traditional network wouldn't be able to do

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Speaker 1: given all of the data and other ways you have

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Speaker 1: to reach your customers? Right, Well, I would start with

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Speaker 1: you know, we've done a deal with Nielsen, so we

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Speaker 1: we actually are the first streamer to do a deal

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Speaker 1: with Nielsen, so we'll have ratings every week. So we

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Speaker 1: think that's really important because that is what advertisers and

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Speaker 1: the industry follows or Nielsen ratings. On top of that,

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Speaker 1: as you say, we have first party data, and we'll

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Speaker 1: use that data not only to measure our fans and

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Speaker 1: to and and to serve to serve them better, but

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Speaker 1: also to serve advertisers better. We can actually use that

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Speaker 1: first party data to make the advertising more relevant, more targeted,

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Speaker 1: more directed. So it's an incredible opportunity. Now talk to

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Speaker 1: us about the experience. Is there gonna be a pregame show,

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Speaker 1: a halftime show, sideline reporters. How is this going to

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Speaker 1: be different than a traditional network at spirit? Right? So,

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Speaker 1: so first of all, we start, we start with the basics.

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Speaker 1: We have the best broadcast. We think we will have

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Speaker 1: the best game broadcast in the business. I mean, well,

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Speaker 1: I've been in sports twenty years and you always have

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Speaker 1: to remember it starts and ends with the game. So

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Speaker 1: we've got iconic broadcasters like Al Michael's and Kirk curb Street.

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Speaker 1: We've got Kayleie hard Tongue on the sidelines. This will

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Speaker 1: be the absolute broadcast. We've got more cameras than anybody.

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Speaker 1: So when you turn on your big screen television or

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Speaker 1: whatever device, were on every piece of glass. Whatever you

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Speaker 1: watch the game, you can sit back and relax and

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Speaker 1: enjoy that huge, big screen experience. But on top of that,

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Speaker 1: as you mentioned, Emily, we're we're no t T service,

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Speaker 1: so we're not satisfied with that. The bar for us

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Speaker 1: is really high. We want to innovate, so we're going

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Speaker 1: to offer all sorts of innovation and custom customized experience

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Speaker 1: for fans. Will have alternate feeds. You can watch the game,

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Speaker 1: you can sit down and watch with your family and

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Speaker 1: watch the dudes Dude perfect, or you can go, you

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Speaker 1: can um and you can explore our x ray experience,

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Speaker 1: which is actually without ever leaving the game, you can

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Speaker 1: see all sorts of data and statistics and replays. The

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Speaker 1: point of Extray is actually to put the tools that

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Speaker 1: normally have to wait for a producer or director to say,

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Speaker 1: oh let me see that replay, let me show you

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Speaker 1: some extra stats. We're going to put that in the

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Speaker 1: hands of fans. And then, of course we have all

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Speaker 1: the content around the game, so we have pregame, post game,

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Speaker 1: we'll have a great late night show, and we've got

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Speaker 1: the best the best talent in the business there. We've

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Speaker 1: got Charissa Thompson we've got Hall of Famer Tony Gonzalez.

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Speaker 1: We've got two guys right off the field, Richard Sherman

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Speaker 1: and Ryan Fitzpatrick. They're going to be amazing the conversation

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Speaker 1: these guys have. They were on the field with these

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Speaker 1: guys just last year, so they'll take fans literally inside

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Speaker 1: the thinking of the players on the field. And we've

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Speaker 1: got a great surrounding cast. And then we've got we're

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Speaker 1: also going to offer the game and the programming on Twitch.

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Speaker 1: Remember we have Twitch, which is an incredibly young, incredibly young,

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Speaker 1: um interactive audience, and you know, Twitch is all about

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Speaker 1: watching with your community, So we're excited we're going to

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Speaker 1: expand the communal nature of sports through Twitch. And then

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Speaker 1: on top of it, we've got some shows during the

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Speaker 1: rest of the week, so we are going to surround

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Speaker 1: fans all week. And as you can tell from my excitement,

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Speaker 1: we're we're just thrilled to get going. You know, I

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Speaker 1: assume you've got some contingency plans, you know, are you

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Speaker 1: sure all cable fans are gonna be able to find

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Speaker 1: the game? Are you planning for any kind of onboarding

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Speaker 1: issues or an on slot of onboarding issues? Potentially absolutely,

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Speaker 1: So we were on every piece of glass, as I mentioned,

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Speaker 1: and if you come to any Amazon service, you're not

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Speaker 1: going to be able to miss this game, and it'll

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Speaker 1: be seamless and it will be easy. But also we've

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Speaker 1: got great third party marketing to to also help you.

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Speaker 1: But of course we're prepared. We've done this in Europe,

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Speaker 1: we've done this in other places in the US. We

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Speaker 1: actually have all sorts of online tools, and we're old school.

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Speaker 1: We also have phone numbers you can call, and we

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Speaker 1: actually put extra people on hand because we know that

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Speaker 1: it's incredibly frustrating when you call the sometimes when you

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Speaker 1: call those services and you don't get an answer. We

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Speaker 1: will have literally thousands of people ready to take those

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Speaker 1: phone calls if needed. So we're incredibly excited. We've been

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Speaker 1: preparing for this for years. This is really hard work

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Speaker 1: and it's really complicated, and we've been building at it,

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Speaker 1: building towards it for years. We think we're the company

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Speaker 1: and the best, with no other companies in position to

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Speaker 1: serve a game like this to a concurrent, concurrent audience

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Speaker 1: like we're going to experience this season. So the big question,

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Speaker 1: of course, then is what next is Amazon planning to

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Speaker 1: bid on any of the remaining college sports rights or

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Speaker 1: the NBA. What else do you have coming? Well, obviously

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Speaker 1: I can't talk about specifics, but what I can tell you,

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Speaker 1: Emily is we approach everything from the sports fan perspective.

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Speaker 1: So the first thing we do is we say, how

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Speaker 1: do fans consume this content? Is there a way we

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Speaker 1: can do better? Is there a way we can serve

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Speaker 1: those fans better? And of course then what can we

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Speaker 1: do differently and does it make sense for us? So

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Speaker 1: there's literally I can't really think of any sports rights

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Speaker 1: we don't look at. I mean, we're in business with

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Speaker 1: the NFL, We're in business with the Yankees. You know,

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Speaker 1: we provide local games exclusively in New York. So we're excited.

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Speaker 1: The partners who are willing to come with us are

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Speaker 1: the ones who are forward focused, fan focus and really

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Speaker 1: want to go as you know, the old Wayne Gretzky

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Speaker 1: want to go where the puck is going, not where

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Speaker 1: it's been. So last quick question, I know you used

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Speaker 1: to work at ESPN. Amazon has a huge content budget.

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Speaker 1: I wonder if you're also thinking about making new sports content.

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Speaker 1: You know, I believe you were involved in the thirty

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Speaker 1: for thirties series, um you know, and and maybe original

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Speaker 1: sports documentaries and other ways that you can build out

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Speaker 1: Amazon as a big player in where you go to

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Speaker 1: see things about sports. Absolutely, so we've already started that. Emily.

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Speaker 1: We've got a series All or Nothing that we've done

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Speaker 1: in the US and Europe. We've got great, great success

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Speaker 1: with that, and actually five months ago we started a

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Speaker 1: separate sports group in my group. We're hiring or staffing

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Speaker 1: up if anybody in a young filmmakers out there want

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Speaker 1: to come work with us. So we're excited. We think

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Speaker 1: when you have those that additional content, not only is

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Speaker 1: it valuable on its own, we have a high bar

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Speaker 1: we wanted to be excellent content, but it also engages

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Speaker 1: fans more with the athletes and the teams that then

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Speaker 1: we show on live events. It's a really great um

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Speaker 1: ecosystem to get going. And we we we found that

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Speaker 1: in Europe when we have are all or nothings on

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Speaker 1: the Premier league teams, we notice that those fans understand

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Speaker 1: and appreciate those players and those teams even more when

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Speaker 1: they understand what they've gone through and seen behind this

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Speaker 1: and and seen behind the scenes. All right, Uh, Marie Donnie,

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Speaker 1: who I believe I got You've got to catch a

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Speaker 1: flight to Kansas City. UM, so thank you so much

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Speaker 1: for joining us. Amazon Global Sports Video Vice President and

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Speaker 1: excited to see how it all shakes out. On Thursday,

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Speaker 1: Early indicators suggest Apple's iPhone fourteen pre orders are stronger

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Speaker 1: than expected. Pre order data showing that the iPhone fourteen

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Speaker 1: Pro Max is the best selling model, and orders for

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Speaker 1: the iPhone fourteen or tracking slightly ahead of the iPhone thirteen.

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Speaker 1: Web Bush saying it's seeing strong demand trends and estimates

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Speaker 1: two forty million of the one billion total I phone

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Speaker 1: users haven't upgraded their phones in nearly four years. Apple

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Speaker 1: shares popping on the news the most since coming up.

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Speaker 1: Micron breaking ground on a new fab in Idaho. CEO

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Speaker 1: San j me Rotra with us next. Welcome back to

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Speaker 1: Bloomberg Technology. I'm Emily Chang in San Francisco. Trevor Milton,

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Speaker 1: the founder and former executive chair of Nicola, went on

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Speaker 1: trial starting this week, charged with Lyne about the company's

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Speaker 1: products to mislead investors and prop at the stock Let's

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Speaker 1: get back to New York and Bloomberg's at Ludlow, who

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Speaker 1: was in court today for the first stages. Ed what happened? Yes,

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Speaker 1: So Trevor Milton faces two counts of securities fraud, two

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Speaker 1: counts of y fraud, and you're right, m that prosecutors

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Speaker 1: have to prove that a Trevor Milton lied about the

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Speaker 1: company's technology and its products, and that in so doing

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Speaker 1: he misled investors and also therefore the investors made the

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Speaker 1: choice to invest in his company, Nicola, based on the information.

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Speaker 1: He arrived Monday morning Southern Districts of New York here

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Speaker 1: in Manhattan for the trial, which was supposed to take

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Speaker 1: place in July, but Judge Egardo Ramos granted the delay

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Speaker 1: until September twelve, Monday, so that they could take on

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Speaker 1: that fourth count of wire fraud. It's a five week trial,

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Speaker 1: so we started Monday with jury selection. Tuesday, we expect

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Speaker 1: opening arguments, with the prosecution having around three weeks present

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Speaker 1: their evidence, and then the defense will come in and

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Speaker 1: the burn of proof is on the prosecution here. This

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Speaker 1: trial could run for around five weeks through the end

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Speaker 1: of October, and as they say, the focus for the

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Speaker 1: prosecution is convincing the jury that a Trevor Milton lied,

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Speaker 1: misled investors. About the company's progress, it's technology, what it

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Speaker 1: had actually achieved, but also the investors, retail investors in

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Speaker 1: particular were moved or motivated to invest in the stock

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Speaker 1: for that reason. You remember it. It's Pete. This was

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Speaker 1: the poster child back wave of ev companies went public,

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Speaker 1: virus back, and at one point it had a market

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Speaker 1: cap rating them forward, things are very different now and

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Speaker 1: all right, Ad Ludlow, thank you. Will continue to wait

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Speaker 1: for your updates as the child progresses. Meantime, Micron just

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Speaker 1: broke ground on a new memory manufacturing fab in Boise, Idaho,

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Speaker 1: the first of its kind in the US in twenty years.

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Speaker 1: The chip maker plans to invest roughly fifteen billion dollars

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Speaker 1: on the plan over the next several years, making it

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Speaker 1: the largest private investment ever made in the state. I

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Speaker 1: caught up with Micron CEO Sandre ma Rotra in an

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Speaker 1: exclusive interview earlier. Take a listen to what he had

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Speaker 1: to say. We have been are research and development technology

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Speaker 1: leader from Boise for decades and now being able to

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Speaker 1: combine it with leading edge memory manufacturing technology. This will

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Speaker 1: just accelerate time to market of new technologies, new solutions

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Speaker 1: for the benefit of the customers as well as of

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Speaker 1: course driving US leadership and semiconductor technology. So this is

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Speaker 1: a big day. This is a big announcement. And this

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Speaker 1: is enabled by Chips Act, which was just signed by

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Speaker 1: President by it in a month ago, because that is

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Speaker 1: really important in terms of leveling the playing field. So

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Speaker 1: this is very exciting. It will bring seventeen thou jobs

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Speaker 1: here in Idaho over the course of the rest of

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Speaker 1: the decade. We will be starting production sometime in TWI

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Speaker 1: of course, construction to start some time in twenty twenty three,

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Speaker 1: and this will be transformative and we'll be bringing on

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Speaker 1: production of course in line with the industry's demand. Now

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Speaker 1: Micron of course already has many plants across Asia. How

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Speaker 1: does this impact operations globally? Does this mean you'll always

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Speaker 1: consider building in the US? First, of course, we have,

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Speaker 1: as you noted, well diversified footprint across Asia for our manufacturing.

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Speaker 1: And again chip SACKED now enables the leveling the playing

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Speaker 1: field whereby now the production can become cost effective with

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Speaker 1: the support of grants from Chips and investment tax credits.

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Speaker 1: So of course we will continue to invest in our

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Speaker 1: plans in Asia as well. But when we look at

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Speaker 1: the demand for memory. By twenty thirty timeframe, semiconductor memory

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Speaker 1: demand is expected to double in terms of revenue opportunity.

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Speaker 1: That requires new way for capacity. That's why we started

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Speaker 1: this plant here, announced this plant here, and actually had

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Speaker 1: the ceremony that launches the construction for this plant. Uh.

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Speaker 1: And this will basically enable us. This will basically enable

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Speaker 1: us to meet the growing demand for the era for

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Speaker 1: semi conductive memory technology. Of course, we'll keep investing in

432
00:25:05,880 --> 00:25:11,000
Speaker 1: technology transitions in our overseas plans as well. Is the

433
00:25:11,080 --> 00:25:14,480
Speaker 1: money that's been set aside by the US government enough

434
00:25:14,800 --> 00:25:19,399
Speaker 1: others have called it a start. That's right, it's a

435
00:25:19,440 --> 00:25:23,320
Speaker 1: good start. And the support in terms of CHIPS grants

436
00:25:23,320 --> 00:25:26,960
Speaker 1: as well as investment tax credits will help US level

437
00:25:27,040 --> 00:25:30,760
Speaker 1: the playing field with foreign governments which have been supporting

438
00:25:30,840 --> 00:25:35,840
Speaker 1: investments in semiconductors in their countries for a very long time.

439
00:25:36,240 --> 00:25:40,400
Speaker 1: Of course, companies like Micron will continue to invest from

440
00:25:40,440 --> 00:25:44,240
Speaker 1: their operating cash flow as well as from the balance sheet,

441
00:25:44,520 --> 00:25:47,160
Speaker 1: and of course big part of the investments will come

442
00:25:47,240 --> 00:25:52,600
Speaker 1: from Micron, but the CHIPS grants are absolutely essential. Without chips,

443
00:25:52,920 --> 00:25:55,640
Speaker 1: we would not have been able to make this investment.

444
00:25:55,720 --> 00:26:00,439
Speaker 1: This announcement today, Do you have any concern and that

445
00:26:00,880 --> 00:26:04,679
Speaker 1: it's governments and not market forces setting the agenda for

446
00:26:04,720 --> 00:26:07,520
Speaker 1: what is needed and that that could down the line

447
00:26:07,680 --> 00:26:12,880
Speaker 1: create excess capacity. It is extremely important as and as

448
00:26:12,880 --> 00:26:16,160
Speaker 1: I noted earlier, that we will be bringing on production

449
00:26:16,320 --> 00:26:20,960
Speaker 1: in the future in line with the industry demand projections,

450
00:26:21,240 --> 00:26:24,919
Speaker 1: the end market demand projections, and of course each of

451
00:26:24,920 --> 00:26:28,280
Speaker 1: the companies that is bringing their own semiconductor production up

452
00:26:28,640 --> 00:26:31,320
Speaker 1: will be managing, should be managing, and I can speak

453
00:26:31,320 --> 00:26:34,480
Speaker 1: for Micron, we will of course be managing with discipline

454
00:26:34,600 --> 00:26:38,880
Speaker 1: our supply growth, keeping an eye on demand growth and

455
00:26:38,960 --> 00:26:43,600
Speaker 1: keeping them balanced to the best of our abilities. Now,

456
00:26:43,800 --> 00:26:46,800
Speaker 1: you and Micron warned about slowing demand about a month ago,

457
00:26:46,880 --> 00:26:51,679
Speaker 1: which triggered a broader concern about a slump across the

458
00:26:51,760 --> 00:26:55,480
Speaker 1: chip industry overall, What can you tell us about demand

459
00:26:55,960 --> 00:26:59,119
Speaker 1: as you see it now? Is it indeed slowing down?

460
00:26:59,200 --> 00:27:03,920
Speaker 1: And if so, how much this is for the memory industry,

461
00:27:04,200 --> 00:27:07,120
Speaker 1: for the semi conductive memory industry. This is a challenging

462
00:27:07,240 --> 00:27:12,520
Speaker 1: environment primarily driven by inventory adjustments that our customers across

463
00:27:12,600 --> 00:27:16,879
Speaker 1: various end markets are making, and that's really impacting the

464
00:27:16,920 --> 00:27:20,399
Speaker 1: industry demand and supply balance. Of course, we have taken

465
00:27:20,440 --> 00:27:24,119
Speaker 1: actions in this regard in terms of adjusting our supply

466
00:27:24,200 --> 00:27:28,000
Speaker 1: growth plans for the future. But you know um Emily

467
00:27:28,119 --> 00:27:31,639
Speaker 1: very well that in semiconductors actions taken it takes a

468
00:27:31,640 --> 00:27:34,560
Speaker 1: while before the results are achieved. So it will take

469
00:27:34,760 --> 00:27:38,280
Speaker 1: us few quarters before I believe industry demand and supply

470
00:27:38,359 --> 00:27:42,480
Speaker 1: and balance will be restored. But what's important here is

471
00:27:42,480 --> 00:27:46,439
Speaker 1: what we're announcing today is about the long term future.

472
00:27:46,960 --> 00:27:52,160
Speaker 1: The demand drivers for long terms AI five G, autonomous

473
00:27:52,200 --> 00:27:56,840
Speaker 1: and of course across data center, industrial automotive. Those demand

474
00:27:56,960 --> 00:28:00,600
Speaker 1: drivers in terms of consumption of memory requirements for the

475
00:28:00,680 --> 00:28:03,879
Speaker 1: long term or intact and that's why to meet that

476
00:28:04,080 --> 00:28:07,840
Speaker 1: growing demand requirement of the future, investments need to be

477
00:28:07,920 --> 00:28:11,760
Speaker 1: made now because there's a long lead time to build

478
00:28:11,760 --> 00:28:15,359
Speaker 1: these fabs and the production will only start in the

479
00:28:15,440 --> 00:28:18,200
Speaker 1: second half of this decade and it will of course

480
00:28:18,200 --> 00:28:21,679
Speaker 1: be managed in line with the demand projections for the future.

481
00:28:23,200 --> 00:28:25,840
Speaker 1: So clearly a huge step for Micron breaking ground on

482
00:28:25,880 --> 00:28:28,520
Speaker 1: this fab today. I'm curious what you think this means

483
00:28:28,520 --> 00:28:32,400
Speaker 1: for the broader industry though, if demand is slowing or

484
00:28:32,440 --> 00:28:35,040
Speaker 1: you know, at least for a few quarters, as you say,

485
00:28:35,119 --> 00:28:36,720
Speaker 1: how long do you think we could be in a

486
00:28:36,800 --> 00:28:40,680
Speaker 1: cycle of oversupply, you know, not just where Micron is concerned,

487
00:28:40,720 --> 00:28:45,200
Speaker 1: but across the broader chip industry. So look in mentory

488
00:28:45,240 --> 00:28:48,480
Speaker 1: adjustments take a while to work through the system, and

489
00:28:48,840 --> 00:28:51,640
Speaker 1: I can tell you that memory industry tends to be cyclical.

490
00:28:51,760 --> 00:28:54,880
Speaker 1: But what's important is that the health of the memory

491
00:28:54,960 --> 00:28:59,000
Speaker 1: industry is really ultimately driven by long term demand trends.

492
00:28:59,040 --> 00:29:03,600
Speaker 1: And I think that's important that as near near term

493
00:29:03,600 --> 00:29:08,200
Speaker 1: perturbations take place due to factors such as inventory adjustments,

494
00:29:08,360 --> 00:29:12,760
Speaker 1: actions are taken fast to bring demand and supply in balance.

495
00:29:12,840 --> 00:29:15,080
Speaker 1: But of course it takes a while, it takes a

496
00:29:15,080 --> 00:29:17,920
Speaker 1: few quarters for their demand supply to get im balance.

497
00:29:18,160 --> 00:29:21,560
Speaker 1: But important thing is that actions that are taken fast.

498
00:29:21,800 --> 00:29:24,560
Speaker 1: We are being responsive in that regard, but we are

499
00:29:24,640 --> 00:29:28,160
Speaker 1: also managing for the long haul, the lo the long

500
00:29:28,200 --> 00:29:31,640
Speaker 1: haul in terms of the growing demand needing more investments

501
00:29:31,880 --> 00:29:35,360
Speaker 1: in order to meet the requirements of our customers. As

502
00:29:35,360 --> 00:29:37,840
Speaker 1: we look ahead to the second half of this decade,

503
00:29:39,320 --> 00:29:41,160
Speaker 1: there's of course been a lot of talk about the

504
00:29:41,160 --> 00:29:43,720
Speaker 1: competition between the US and China on this front. Just

505
00:29:43,800 --> 00:29:46,920
Speaker 1: how big is China in the memory market in particular,

506
00:29:46,960 --> 00:29:49,760
Speaker 1: and is it's something that the US government should be

507
00:29:49,760 --> 00:29:54,400
Speaker 1: concerned about. So there are Chinese companies with the support

508
00:29:54,440 --> 00:29:57,040
Speaker 1: of the Chinese government, you know, that have been making

509
00:29:57,080 --> 00:30:00,000
Speaker 1: certain progress with respect to the memory and of course

510
00:30:00,080 --> 00:30:03,000
Speaker 1: you know these are taken into account when we look

511
00:30:03,040 --> 00:30:07,760
Speaker 1: at overall industry supply and the industry supply growth, expectations

512
00:30:07,800 --> 00:30:10,640
Speaker 1: of the future, and what we are here doing at

513
00:30:10,680 --> 00:30:14,560
Speaker 1: Micron is continuing to stay ahead in terms of the

514
00:30:14,640 --> 00:30:18,600
Speaker 1: technology capability. Of course, we always want a level playing

515
00:30:18,640 --> 00:30:21,960
Speaker 1: field and of course respect for intellectual property, but we

516
00:30:22,040 --> 00:30:26,560
Speaker 1: have to continue to drive our own technology roadmap. Today

517
00:30:26,640 --> 00:30:31,680
Speaker 1: Emily Micron is a leader global leader in semiconductor deram

518
00:30:31,840 --> 00:30:36,000
Speaker 1: as well as nand technology. And this is where right

519
00:30:36,080 --> 00:30:39,360
Speaker 1: from here in Boise the teams that have produced tremendous

520
00:30:39,360 --> 00:30:42,000
Speaker 1: amount of innovation that in the future we'll be able

521
00:30:42,040 --> 00:30:45,680
Speaker 1: to combine with bringing into manufacturing right here as well.

522
00:30:45,920 --> 00:30:50,280
Speaker 1: These are all chips ACKed enabled activities that actually ultimately

523
00:30:50,400 --> 00:30:53,760
Speaker 1: help secure the national security of the U S as

524
00:30:53,800 --> 00:31:00,479
Speaker 1: well by having manufacturing of critical um infrastructure needs chips

525
00:31:00,520 --> 00:31:03,520
Speaker 1: being made here in the future in the semi inducted industry,

526
00:31:04,200 --> 00:31:21,640
Speaker 1: M MICR and CEO Sandrea. There we still have some

527
00:31:21,680 --> 00:31:24,120
Speaker 1: work to do I know security being a big, big

528
00:31:24,120 --> 00:31:26,240
Speaker 1: part of that, and you're seeing some of the cybersecurity

529
00:31:26,680 --> 00:31:30,520
Speaker 1: UM investment investing going way up. But um in the

530
00:31:30,600 --> 00:31:33,440
Speaker 1: grand scheme and you look at the thesis of the

531
00:31:33,480 --> 00:31:36,120
Speaker 1: blockchain and the teas the house should work. UM, it

532
00:31:36,160 --> 00:31:41,040
Speaker 1: definitely gives athlete opportunity to go directly to this fan base,

533
00:31:41,240 --> 00:31:44,040
Speaker 1: that gives the fan, uh you know, insights. That's a

534
00:31:44,040 --> 00:31:46,440
Speaker 1: lot different and it's essentially cutting out the middle man.

535
00:31:48,520 --> 00:31:52,680
Speaker 1: That was NBA champion and investor andre Iguadala speaking about

536
00:31:52,720 --> 00:31:55,600
Speaker 1: the intersection of sports and n f t S. Let's

537
00:31:55,640 --> 00:31:58,320
Speaker 1: dive deeper into this conversation in our Crypto report. Now

538
00:31:58,320 --> 00:32:01,400
Speaker 1: with fantasy sports and blockchain Cup so Rare, which is

539
00:32:01,440 --> 00:32:05,320
Speaker 1: backed by, among others, tennis great Serena Williams. The company

540
00:32:05,320 --> 00:32:07,800
Speaker 1: has already inked partnerships with Major League Soccer in Major

541
00:32:07,840 --> 00:32:10,240
Speaker 1: League Baseball and is now adding the NBA with the

542
00:32:10,320 --> 00:32:13,880
Speaker 1: first free to play fantasy game based on digital cards.

543
00:32:14,080 --> 00:32:16,960
Speaker 1: So we're CEO O Ryan Spoon joins us now for

544
00:32:17,080 --> 00:32:19,200
Speaker 1: more on this deal. So talk to us Ryan about

545
00:32:19,200 --> 00:32:24,480
Speaker 1: how this partnership with the NBA came together. First, Thanks

546
00:32:24,480 --> 00:32:27,560
Speaker 1: for having me. Um it came together. It's it's just

547
00:32:27,600 --> 00:32:30,440
Speaker 1: a very natural evolution. You heard Andre talk there about

548
00:32:30,480 --> 00:32:35,360
Speaker 1: the importance of the opportunities that blockchain enables. We all

549
00:32:35,400 --> 00:32:40,440
Speaker 1: know I spent years at ESPN on the digital side, um,

550
00:32:40,560 --> 00:32:45,040
Speaker 1: how important and fun uh And how fast growing fantasy is.

551
00:32:46,000 --> 00:32:48,400
Speaker 1: We know that on the collectible side, and so when

552
00:32:48,440 --> 00:32:53,160
Speaker 1: you tie fantasy and collectibles with the blockchain on a

553
00:32:53,200 --> 00:32:57,400
Speaker 1: global scale, the NBA is a perfect perfect product and partner.

554
00:32:58,040 --> 00:33:00,680
Speaker 1: Uh And it's our third launch. As you mentioned, we

555
00:33:00,720 --> 00:33:04,880
Speaker 1: have a big global soccer, global football game and community

556
00:33:05,120 --> 00:33:08,320
Speaker 1: that's been very successful. A couple of months ago we

557
00:33:08,440 --> 00:33:12,880
Speaker 1: announced and then launched our MLB partnership and so were MLB.

558
00:33:13,400 --> 00:33:15,360
Speaker 1: And we're super excited to be doing this with the

559
00:33:15,480 --> 00:33:19,240
Speaker 1: NBA right up around the U the upcoming season launch.

560
00:33:21,040 --> 00:33:24,040
Speaker 1: This puts you in competition with NBA. Top shot, how

561
00:33:24,040 --> 00:33:29,120
Speaker 1: do your platform stuck up? So we are very specifically

562
00:33:29,160 --> 00:33:32,920
Speaker 1: focused on n f T based games. Uh So, players

563
00:33:33,320 --> 00:33:36,920
Speaker 1: collect their cards you come in uh and everyone. Once

564
00:33:36,960 --> 00:33:39,560
Speaker 1: you register, you get a free set of cards, and

565
00:33:39,640 --> 00:33:41,760
Speaker 1: with those cards you play the game, and the game

566
00:33:41,880 --> 00:33:45,360
Speaker 1: you're managing the cards. Uh So like a fantasy draft,

567
00:33:45,360 --> 00:33:48,640
Speaker 1: but instead of ESPN, who I know and love and

568
00:33:48,720 --> 00:33:52,440
Speaker 1: spent time this weekend doing my my fantasy drafts. Here,

569
00:33:52,840 --> 00:33:58,240
Speaker 1: the player has the agency to pick and manage his

570
00:33:58,400 --> 00:34:01,440
Speaker 1: or her roster. As you do that, you end up

571
00:34:01,760 --> 00:34:06,520
Speaker 1: collecting cards as rewards. That's very different. I've admiration for

572
00:34:06,600 --> 00:34:09,320
Speaker 1: Top Shot, I've admiration uh, and I'm a user of

573
00:34:09,360 --> 00:34:12,319
Speaker 1: a lot of other platforms. But in our space, the

574
00:34:12,360 --> 00:34:16,520
Speaker 1: fantasy based games, we are the leader, and these relationships

575
00:34:16,520 --> 00:34:19,560
Speaker 1: are also um. You know, this is the lane that

576
00:34:19,600 --> 00:34:23,640
Speaker 1: we are exclusively focused on, and we think we have

577
00:34:23,719 --> 00:34:28,920
Speaker 1: demonstrated real leadership in now you've launched soccer and baseball

578
00:34:29,040 --> 00:34:32,600
Speaker 1: n f T projects previously, No surprise, Aaron Judge and

579
00:34:32,600 --> 00:34:36,239
Speaker 1: showhir Tani are the most used cards. What kind of

580
00:34:36,280 --> 00:34:42,080
Speaker 1: traction have you seen so soccer. Soccer has obviously a

581
00:34:42,800 --> 00:34:46,799
Speaker 1: larger runway. It is very uh successful, It's very large

582
00:34:46,840 --> 00:34:50,319
Speaker 1: community behind it. Obviously it's a global game. Uh. The

583
00:34:50,400 --> 00:34:53,320
Speaker 1: user based on our side is global. The traction is global,

584
00:34:53,520 --> 00:34:56,839
Speaker 1: and when I say geographically diverse, it really is from

585
00:34:56,880 --> 00:35:00,319
Speaker 1: all segments of the world. We closed last year, still

586
00:35:00,320 --> 00:35:03,360
Speaker 1: believe we're in early days. We closed last year doing

587
00:35:03,760 --> 00:35:09,520
Speaker 1: three million in card sales on the platform. We exceeded

588
00:35:09,560 --> 00:35:12,040
Speaker 1: that in the first two quarters of the year, and

589
00:35:12,080 --> 00:35:15,239
Speaker 1: now you begin to UH to introduce MLB. We did

590
00:35:15,280 --> 00:35:18,560
Speaker 1: that end of July. The traction there has been really

591
00:35:18,600 --> 00:35:24,520
Speaker 1: positive and encouraging. UM also a global footprint, which we

592
00:35:24,560 --> 00:35:27,600
Speaker 1: think is important. Baseball is a really excellent product here,

593
00:35:28,160 --> 00:35:32,000
Speaker 1: UM and sport because of the stats based nature, the movement,

594
00:35:32,200 --> 00:35:36,040
Speaker 1: the surprise and NBA is going to be fantastic. We

595
00:35:36,120 --> 00:35:39,239
Speaker 1: all know UM how important the stars are and the

596
00:35:39,239 --> 00:35:41,400
Speaker 1: players and for what it's you know, it's worth noting

597
00:35:41,920 --> 00:35:44,560
Speaker 1: our deal on the NBA side is with both the

598
00:35:44,680 --> 00:35:46,960
Speaker 1: NBA and the n B a p A UM, so

599
00:35:47,000 --> 00:35:51,680
Speaker 1: these are licensed UH, player driven cards UM. And I

600
00:35:51,719 --> 00:35:55,200
Speaker 1: also think it's worth noting that MLB's biggest day on

601
00:35:55,239 --> 00:35:59,360
Speaker 1: the platform was when we announced NBA last week, and

602
00:35:59,400 --> 00:36:02,560
Speaker 1: so that's a really important example of how we think

603
00:36:02,600 --> 00:36:05,560
Speaker 1: all these sports can fit together, how the global nature

604
00:36:05,560 --> 00:36:09,280
Speaker 1: of these games hopefully works together. UH. In this concept

605
00:36:09,320 --> 00:36:12,040
Speaker 1: of being able to collect a j Hoannice card or

606
00:36:12,080 --> 00:36:15,040
Speaker 1: a Mike Trout or a killing and Bope and do

607
00:36:15,160 --> 00:36:18,760
Speaker 1: that across the entire platform, that's a really big exciting idea.

608
00:36:19,160 --> 00:36:23,800
Speaker 1: All right, good stuff. Bryan Spoon, CEO so rare. Well,

609
00:36:24,120 --> 00:36:27,000
Speaker 1: andre iguadala is excited about it. That, um, you should

610
00:36:27,000 --> 00:36:39,320
Speaker 1: get some folks excited. Thanks Ryan so much. Blue Origin

611
00:36:39,360 --> 00:36:42,719
Speaker 1: aboarded a launch of its suborbital New Shepherd rocket moments

612
00:36:43,080 --> 00:36:46,920
Speaker 1: after takeoff. This happened in West Texas, and it is

613
00:36:46,960 --> 00:36:50,880
Speaker 1: the first major failure for Jeff Bezos company in several

614
00:36:50,920 --> 00:36:54,239
Speaker 1: years Bloomberg. Lauren Grash joins US now from Austin with

615
00:36:54,640 --> 00:36:58,799
Speaker 1: more details. So, Lauren, what happened, Well, we actually don't

616
00:36:58,920 --> 00:37:01,120
Speaker 1: have a lot of detail is at the moment. Basically

617
00:37:01,200 --> 00:37:04,000
Speaker 1: all we know is what we saw on the live

618
00:37:04,040 --> 00:37:07,920
Speaker 1: stream of the the launch today. This was a pretty

619
00:37:07,960 --> 00:37:13,320
Speaker 1: regular routine launched for Blue Origin. They were launching research payloads,

620
00:37:13,320 --> 00:37:16,000
Speaker 1: many of which were funded by NASA. No people were

621
00:37:16,040 --> 00:37:18,600
Speaker 1: on board, thankfully, but it was meant to be a

622
00:37:18,600 --> 00:37:21,600
Speaker 1: pretty regular launch for them, sending these payloads to space

623
00:37:21,640 --> 00:37:24,880
Speaker 1: and back. And then sometime a little after a minute

624
00:37:24,920 --> 00:37:28,000
Speaker 1: into the launch, something seems to go wrong with the

625
00:37:28,080 --> 00:37:33,000
Speaker 1: engine and it triggered the aboard escape system for the capsule.

626
00:37:35,360 --> 00:37:40,160
Speaker 1: How significant is a failure like this in what would

627
00:37:40,160 --> 00:37:44,560
Speaker 1: have been a pretty routine launch. I think Blue Origine

628
00:37:44,600 --> 00:37:48,080
Speaker 1: got really lucky today because there was no people on board.

629
00:37:48,200 --> 00:37:50,319
Speaker 1: I they have a pretty good track record when it

630
00:37:50,360 --> 00:37:53,360
Speaker 1: comes to their their flights. They only really suff suffered

631
00:37:53,400 --> 00:37:58,080
Speaker 1: one partial failure really early in their testing regime. So

632
00:37:58,200 --> 00:38:01,480
Speaker 1: this is the first time pretty much all of New

633
00:38:01,520 --> 00:38:04,359
Speaker 1: Shepherd's history that they've had a major failure like this.

634
00:38:04,480 --> 00:38:06,840
Speaker 1: So I think it's it's probably going to be a

635
00:38:06,840 --> 00:38:11,920
Speaker 1: while before we see New Shepherd fly again. So what

636
00:38:12,760 --> 00:38:16,200
Speaker 1: is next here? Um, you know, when something like this happens,

637
00:38:16,320 --> 00:38:19,440
Speaker 1: a significant failure like this, do you go back to

638
00:38:19,560 --> 00:38:23,600
Speaker 1: the drawing board? You know, can years pass potentially as

639
00:38:23,640 --> 00:38:27,680
Speaker 1: we've seen with NASA before, someone else before they try

640
00:38:27,719 --> 00:38:31,400
Speaker 1: to attempt this once again. Yeah, it really depends on

641
00:38:31,440 --> 00:38:33,719
Speaker 1: the source of the failure. The f A already said

642
00:38:33,760 --> 00:38:36,040
Speaker 1: today that they're going to be looking into this. Uh.

643
00:38:36,160 --> 00:38:39,239
Speaker 1: Fortunately no one was hurt today and the booster that

644
00:38:39,280 --> 00:38:42,839
Speaker 1: you saw break away from that capsule, uh fell into

645
00:38:42,920 --> 00:38:46,800
Speaker 1: a hazard a designated hazard zone, so ultimately everyone is safe.

646
00:38:46,840 --> 00:38:48,680
Speaker 1: But yes, the f A said they will look into

647
00:38:48,719 --> 00:38:51,560
Speaker 1: it and New Shepherd won't fly again until they get

648
00:38:51,600 --> 00:38:54,520
Speaker 1: to the root of the problem. And it really, like

649
00:38:54,560 --> 00:38:56,799
Speaker 1: I said, it depends on what the source of the

650
00:38:56,840 --> 00:38:59,560
Speaker 1: issue is. You know, with these commercial companies. They can

651
00:38:59,560 --> 00:39:01,640
Speaker 1: be a little a bit more nimble when it comes

652
00:39:01,680 --> 00:39:04,879
Speaker 1: to return to flight. We've seen SpaceX return of flight

653
00:39:04,960 --> 00:39:08,279
Speaker 1: pretty quickly after um some anomalies in the past, and

654
00:39:08,320 --> 00:39:11,040
Speaker 1: so maybe it could be similar from Blue Origin. We

655
00:39:11,080 --> 00:39:12,799
Speaker 1: just can't say for sure because we really don't know

656
00:39:12,880 --> 00:39:16,880
Speaker 1: what what cost it. Can you put this into the

657
00:39:16,960 --> 00:39:21,120
Speaker 1: context of Blue Origins broader ambitions of course, you know,

658
00:39:21,280 --> 00:39:23,680
Speaker 1: I was there the day Jeff Bezos went into space.

659
00:39:23,760 --> 00:39:29,279
Speaker 1: They have sent other folks up there, celebrities, Uh up

660
00:39:29,560 --> 00:39:31,640
Speaker 1: up there, you know, talk to us about how this

661
00:39:31,719 --> 00:39:35,080
Speaker 1: fits into the broader end, longer term plans. You know.

662
00:39:35,120 --> 00:39:39,680
Speaker 1: Of course he's talked about this space colony and more. Well,

663
00:39:39,800 --> 00:39:42,600
Speaker 1: I think it might be tad worrying for folks who

664
00:39:42,680 --> 00:39:45,600
Speaker 1: might have a ticket to fly with Blue Origin. You know,

665
00:39:45,760 --> 00:39:51,160
Speaker 1: this this was a rocket specifically geared toward launching payloads,

666
00:39:51,200 --> 00:39:54,000
Speaker 1: but it is essentially the same rocket that they used

667
00:39:54,040 --> 00:39:56,600
Speaker 1: to send people to the edge of space and back. However,

668
00:39:56,680 --> 00:39:58,640
Speaker 1: some comfort can be had and the fact that it

669
00:39:59,000 --> 00:40:02,239
Speaker 1: kind of worked asn't tended this an in flight aboard system.

670
00:40:02,280 --> 00:40:05,720
Speaker 1: Basically what you saw is as soon as the system

671
00:40:05,719 --> 00:40:08,840
Speaker 1: detected there was a problem with the rocket motors fired

672
00:40:08,840 --> 00:40:11,840
Speaker 1: on the bottom of the capsule and immediately separated the

673
00:40:11,880 --> 00:40:15,440
Speaker 1: capsule from the rocket, and that landed safely in the desert.

674
00:40:15,520 --> 00:40:19,080
Speaker 1: So presumably if there had been people on board, they

675
00:40:19,120 --> 00:40:21,520
Speaker 1: would have been just fine and would have landed safely.

676
00:40:22,360 --> 00:40:24,600
Speaker 1: Can't say for sure, and thankfully there weren't any people

677
00:40:24,640 --> 00:40:27,319
Speaker 1: on board. Um, but the system did seem to work

678
00:40:27,360 --> 00:40:29,719
Speaker 1: as designed, so there is some comfort in that. But

679
00:40:30,200 --> 00:40:32,320
Speaker 1: you know, I might, I'm if I had a ticket,

680
00:40:32,360 --> 00:40:35,160
Speaker 1: I might, yeah, be a little nervous in the future.

681
00:40:37,040 --> 00:40:39,840
Speaker 1: All right, point taco and Bloomery. Lauren Grass, who covers

682
00:40:39,880 --> 00:40:43,080
Speaker 1: face for us, thank you so much for that update.

683
00:40:43,160 --> 00:40:46,440
Speaker 1: And that does it. For the edition of Bloomberg Technology Tuesday,

684
00:40:46,640 --> 00:40:49,319
Speaker 1: Melinda Gates will be joining us to talk about her

685
00:40:49,360 --> 00:40:53,839
Speaker 1: foundation's efforts to fight poverty and gender gaps. And don't

686
00:40:53,880 --> 00:40:57,360
Speaker 1: forget to check out our podcast wherever you get your podcast,

687
00:40:57,400 --> 00:41:00,400
Speaker 1: I'm only check in San Francisco. This is Bloomberg. He

688
00:41:00,640 --> 00:41:07,040
Speaker 1: pip pip a big people. He beating a bit and

689
00:41:07,200 --> 00:41:13,160
Speaker 1: hept a whip. He give out big who beat a

690
00:41:13,400 --> 00:41:19,239
Speaker 1: pick a good people out whip which a people be

691
00:41:19,480 --> 00:41:22,960
Speaker 1: peaking a which people out? Which people