WEBVTT - Nvidia Traders Find Reasons to Worry, Alibaba Pulls Cainiao IPO, The Powerhouse Behind "The Rock" 0:00:01.560 --> 0:00:02.440 We're from Marhard. 0:00:02.560 --> 0:00:07.000 We're Innovation of Money and Power Collie in Silicon Valley NBN. 0:00:07.320 --> 0:00:10.800 This is Bloomberg Technology with Caroline Hyde. 0:00:10.440 --> 0:00:11.360 And Ed Ludlow. 0:00:25.560 --> 0:00:28.480 I met Ludlow in San Francisco. Caroline Hyde is off. 0:00:28.600 --> 0:00:33.159 This is Bloomberg Technology coming up from AI to antitrust, angiopolitics. 0:00:33.440 --> 0:00:35.280 We'll get the full read on the tech sector with 0:00:35.360 --> 0:00:37.279 Denny Fish of Janis Henderson. 0:00:37.600 --> 0:00:39.680 Plus we'll hone in on some corporate. 0:00:39.280 --> 0:00:42.120 News as Ali Barba calls off its planned IPO of 0:00:42.200 --> 0:00:45.599 Canal which could have raised more than one billion dollars, 0:00:45.680 --> 0:00:48.600 and we get the read from inside the c suite. 0:00:48.640 --> 0:00:51.320 Later this hour will be joined by Marissa Mayer and 0:00:51.320 --> 0:00:56.480 by Danny Garcia, the powerhouse behind Dwayne the Rock Johnson. 0:00:56.640 --> 0:00:59.680 But first we want to bring you some important updates 0:00:59.680 --> 0:01:03.800 on the search and rescue mission underway in Baltimore after 0:01:03.840 --> 0:01:07.800 the Francis Scott Key Bridge collapsed early this morning when 0:01:07.800 --> 0:01:11.880 a cargo ship struck the major transportation route. This is 0:01:11.920 --> 0:01:16.200 a live feed of the Padapsco River and the wreckage 0:01:16.640 --> 0:01:20.400 from that crash. Right now, search and rescue is the 0:01:20.440 --> 0:01:24.920 primary focus in Baltimore. There are also major implications for 0:01:24.959 --> 0:01:28.480 global trade as the Port of Baltimore is the largest 0:01:28.520 --> 0:01:33.480 handler of US imports and exports of cars and light trucks. 0:01:33.560 --> 0:01:38.440 The FAA has currently restricted drone flights near to the bridge. 0:01:38.560 --> 0:01:42.520 US Homeland Security Secretary Alejandro Majorcas said in a post 0:01:42.560 --> 0:01:45.279 on x that the Coast Guard is on the scene 0:01:45.319 --> 0:01:49.200 to assist local partners and is quote actively involved in 0:01:49.280 --> 0:01:52.640 the search and rescue mission. We're expecting to hear from 0:01:52.680 --> 0:01:56.080 President Biden later today and will continue to bring you 0:01:56.560 --> 0:01:59.360 updates on the situation in Baltimore. 0:01:59.240 --> 0:02:01.040 Throughout this hour. 0:02:03.720 --> 0:02:07.120 Okay, sticking with what's happening in markets, this is the 0:02:07.160 --> 0:02:10.440 Nasdaq one hundred up three tens and one percent. Remember 0:02:10.480 --> 0:02:12.160 we're coming off the best week of the year so 0:02:12.320 --> 0:02:13.280 far last week. 0:02:13.360 --> 0:02:15.360 The tech sector playing a role in that. 0:02:15.360 --> 0:02:18.080 We're gonna have a conversation about Nvidia softer by half 0:02:18.080 --> 0:02:20.040 a percentage point. But when you're a two trillion dollar 0:02:20.120 --> 0:02:23.240 market cap company, you pay attention to that. Yields creeping 0:02:23.480 --> 0:02:25.440 a little bit higher four point twenty six percent of 0:02:25.480 --> 0:02:28.519 the US ten year and bitcoin is staying above seventy 0:02:28.560 --> 0:02:30.880 thousand US dollars per token. There was that big move 0:02:31.360 --> 0:02:34.320 just before the show. Actually twenty four hours ago higher 0:02:34.360 --> 0:02:38.200 towards seventy thousand US dollars per token. That market's picture 0:02:38.240 --> 0:02:40.799 is kind of a wait and see moment because of 0:02:40.840 --> 0:02:42.840 all the FED speak that's due to come in the 0:02:42.880 --> 0:02:45.960 coming weeks. Let's get back to Baltimore and stick with 0:02:46.000 --> 0:02:49.079 the collapse of Baltimore's key bridge. You're looking at some 0:02:49.160 --> 0:02:53.919 of the automotive names because, as we have stressed, that port, 0:02:54.000 --> 0:02:56.720 whilst small in the context of US ports, is the 0:02:56.760 --> 0:02:59.840 biggest handler of import exports for car and light trucks. 0:03:00.480 --> 0:03:03.320 In the last hour, we spoke to the CFO of 0:03:03.440 --> 0:03:06.760 Ford and got his real time reaction to the broader 0:03:06.760 --> 0:03:08.000 implications of what's happening. 0:03:08.000 --> 0:03:08.480 Have a listen. 0:03:09.160 --> 0:03:11.680 It's a large port with a lot of flow through it, 0:03:11.800 --> 0:03:13.760 so it's going to have an impact. It's just at 0:03:13.760 --> 0:03:16.240 this point we'll have to understand what that means for 0:03:16.320 --> 0:03:19.760 us Specifically, we'll work on the workarounds. We'll have to 0:03:19.800 --> 0:03:23.040 divert parts to other ports along the East Coast or 0:03:23.040 --> 0:03:26.280 elsewhere in the country, and it'll probably lengthen the supply 0:03:26.400 --> 0:03:26.840 chain a bit. 0:03:28.880 --> 0:03:30.240 It's a developing situation. 0:03:30.600 --> 0:03:34.079 Ford CFO talking about having to divert parts to other 0:03:34.160 --> 0:03:37.560 ports on the East coast. How serious is this? What 0:03:37.640 --> 0:03:39.640 is the impact of the economy and supply chain? So 0:03:39.680 --> 0:03:42.480 let's bring a Denny Fish, portfolio manager of the Global 0:03:42.480 --> 0:03:45.480 Technology and Innovation Team over at Janis Henderson Investors, and 0:03:45.920 --> 0:03:47.840 Denny while we have you here. You know you wake 0:03:47.920 --> 0:03:50.120 up to news like this as a money manager, how 0:03:50.120 --> 0:03:51.160 do you feel about it? 0:03:51.520 --> 0:03:54.640 Well, it's a tragedy, of course, and you just hope 0:03:54.640 --> 0:03:57.760 that the people that are unaccounted for are. 0:03:59.160 --> 0:04:00.720 Brought back safely, hopefully. 0:04:00.840 --> 0:04:04.960 But from an economic standpoint, it's too early to tell. 0:04:06.200 --> 0:04:09.480 It's nothing like we faced during COVID when we had 0:04:09.520 --> 0:04:13.640 severe shortages of components throughout the entire automotive supply chain. 0:04:14.120 --> 0:04:17.080 We can get the parts here through other ports. It 0:04:17.200 --> 0:04:19.080 just might take a little more time and it might 0:04:19.120 --> 0:04:21.720 be a little more expensive, But that's how I would 0:04:21.720 --> 0:04:26.640 think about it. But not a material impact to the 0:04:26.680 --> 0:04:27.960 tech ecosystem anyway. 0:04:28.080 --> 0:04:30.720 Well quite, I mean I remember so many days spent 0:04:30.800 --> 0:04:34.120 at the Port of Los Angeles, literally days and weeks 0:04:34.160 --> 0:04:38.239 down there. Part of that story was inflation. Right now, 0:04:38.360 --> 0:04:41.120 we're try and tie together what's happening in the economy 0:04:41.120 --> 0:04:44.359 with the tech sector. How closely are you waiting on 0:04:44.400 --> 0:04:46.360 the Fed, and how nervous are you each day, Denny, 0:04:46.400 --> 0:04:49.039 I know you're not a very nervous person about inflation 0:04:49.200 --> 0:04:51.800 and what the Fed's going to when the Fed's going 0:04:51.839 --> 0:04:52.520 to pull the trigger. 0:04:52.880 --> 0:04:53.080 Yeah. 0:04:53.400 --> 0:04:55.640 I think what's happened with inflation is it's come down 0:04:55.680 --> 0:05:00.400 a lot. There's still some sticky elements to it, and 0:05:00.960 --> 0:05:04.159 maybe we don't get as many cuts from the FED 0:05:04.560 --> 0:05:07.600 as we thought we might towards the end of last year. 0:05:07.640 --> 0:05:10.480 But nonetheless, I think the direction of travel is that 0:05:10.560 --> 0:05:12.520 the FED will start to ease at some point. 0:05:12.640 --> 0:05:14.160 It's just that pace of easy. 0:05:14.000 --> 0:05:16.280 Might not be as aggressive as as one might have 0:05:16.400 --> 0:05:19.600 expected a couple months ago, but that's still that's good 0:05:19.640 --> 0:05:20.919 for stimulating the economy. 0:05:21.920 --> 0:05:22.240 Denny. 0:05:23.120 --> 0:05:25.440 We're his talk about technology, and I think we cannot 0:05:25.480 --> 0:05:28.240 do that about speaking about Nvidia. It's an important name 0:05:28.279 --> 0:05:30.960 for you and your fund. We're soft to six tenso 0:05:31.000 --> 0:05:33.520 percent right now. There's a brilliant story on the Bloomberg 0:05:34.000 --> 0:05:38.119 and Vidia traders find reasons to worry beyond sky high 0:05:38.120 --> 0:05:40.440 stock price. I know that the gain in the price 0:05:40.520 --> 0:05:43.560 is something you have reacted to and you consider, but 0:05:43.640 --> 0:05:46.200 the logic outlined in the story is that a lot 0:05:46.240 --> 0:05:48.840 of the potential gains from Nvidia. The feel good it's 0:05:48.880 --> 0:05:51.400 been brought forward and happened in a very condensed space 0:05:51.440 --> 0:05:53.799 of time. Just give me your thesis on in video 0:05:53.880 --> 0:05:54.320 right now. 0:05:54.480 --> 0:05:54.880 Yeah. 0:05:54.920 --> 0:05:57.680 Absolutely, So if we actually look back to last year, 0:05:58.040 --> 0:06:00.440 it was something similar. Most of the game from the 0:06:00.440 --> 0:06:02.480 stock actually came in the first half of the year, 0:06:03.080 --> 0:06:07.120 particularly Q two, after it really became known just how 0:06:07.160 --> 0:06:09.200 big of a supply demand and balance that we had 0:06:09.200 --> 0:06:13.640 for GPUs. You could argue this year, maybe the same 0:06:13.680 --> 0:06:15.919 thing has happened. I mean, the stock's put on a 0:06:15.960 --> 0:06:18.520 trillion dollars in market cap. Yes, since the beginning of 0:06:18.520 --> 0:06:23.080 the year. It's pretty much unprecedented. But what's important about it, 0:06:23.520 --> 0:06:26.200 and I think this is what makes it hard from 0:06:26.279 --> 0:06:29.800 an investor standpoint, and that is the reason the stock's 0:06:29.839 --> 0:06:32.760 gone up so much, is because earnings have gone up 0:06:32.800 --> 0:06:33.279 so much. 0:06:33.680 --> 0:06:35.320 If we go back eighteen. 0:06:34.920 --> 0:06:38.480 Months ago, I think the street thought in Nvidia might 0:06:38.520 --> 0:06:41.200 earn some somewhere around five dollars a share this year, 0:06:41.440 --> 0:06:43.719 and that's probably going to be closer to twenty five dollars. 0:06:43.720 --> 0:06:45.640 So the stock actually if you. 0:06:45.560 --> 0:06:49.159 Look at the earnings multiple on twenty twenty five, it's 0:06:49.279 --> 0:06:53.800 actually still quite reasonable. Now we can argue what might 0:06:53.960 --> 0:06:58.080 happen as supplied demand comes into balance, but nonetheless, you know, 0:06:58.120 --> 0:07:03.279 the demand profile out there remains unprecedented and evaluation remains reasonable. 0:07:03.360 --> 0:07:07.280 For showing some animation of Blackwell, Yep, how big a 0:07:07.360 --> 0:07:08.640 moment was Blackwell for you? 0:07:09.160 --> 0:07:12.280 Yeah, it's actually a big moment because it's a continuation 0:07:12.520 --> 0:07:16.080 of how Nvidia has been innovating over the last several years, 0:07:16.320 --> 0:07:20.600 and importantly a couple things. It really focuses on price, 0:07:20.720 --> 0:07:23.480 performance and power consumption, which are. 0:07:23.400 --> 0:07:25.440 Two big issues for GPUs. 0:07:25.520 --> 0:07:28.880 I mean, it doesn't get as much attention, but power's 0:07:28.960 --> 0:07:32.880 probably the single biggest constraint to deploying inference across the 0:07:32.880 --> 0:07:36.640 global economy because of just the inability to get enough 0:07:36.680 --> 0:07:39.400 power into these data centers and then you have to 0:07:39.400 --> 0:07:41.440 cool them as well, and you know, there's a lot 0:07:41.520 --> 0:07:44.280 that comes along with that. But the other thing is, 0:07:44.920 --> 0:07:46.920 you know, Blackwell is going to be less expensive, right 0:07:47.000 --> 0:07:49.320 the H one hundred and so that also shows you 0:07:49.400 --> 0:07:53.240 in Vidia's confidence that the visibility that they have and 0:07:53.320 --> 0:07:56.800 to demand that they can actually start lowering the price 0:07:57.240 --> 0:08:00.640 despite there effectively being no elastics. 0:08:00.760 --> 0:08:02.559 See that's my final question on an video. 0:08:03.160 --> 0:08:05.440 I was in the room for ninety minutes with Jensen, 0:08:05.480 --> 0:08:08.480 and he basically said, starting this year, the data center 0:08:08.520 --> 0:08:10.920 business is two hundred and fifty billion dollars per annum, 0:08:10.920 --> 0:08:13.200 but he was talking about growth rates of twenty to 0:08:13.200 --> 0:08:15.920 twenty five percent. What's still not clear to me is 0:08:15.960 --> 0:08:19.320 like the tipping point from where the majority of that 0:08:19.440 --> 0:08:22.680 is training to inference, because I. 0:08:22.640 --> 0:08:24.600 Don't think in videos talks as much about inference. 0:08:24.680 --> 0:08:27.880 AMD came out really hard with the inference story. Just 0:08:27.920 --> 0:08:32.839 how much did you buy I guess the soft guidance 0:08:33.280 --> 0:08:34.120 that he was giving. 0:08:34.480 --> 0:08:35.880 Yeah, it seems reasonable. 0:08:36.080 --> 0:08:39.200 And actually on their last call, if I remember correctly, 0:08:39.480 --> 0:08:43.160 they actually talked about inference now has crossed over half 0:08:43.200 --> 0:08:47.559 of workloads relative to training. Now AMD needs to talk 0:08:47.600 --> 0:08:51.560 about inference because in videos pretty much won the training market, 0:08:51.840 --> 0:08:54.040 and so the next prize out there is inference and 0:08:54.200 --> 0:08:57.359 inferences is going to be It's going to be multiples 0:08:57.440 --> 0:09:00.280 of the market opportunity that training is because this is 0:09:00.320 --> 0:09:02.800 how you deploy it. It's like developing something and then 0:09:02.800 --> 0:09:05.600 putting it into production. That's what's going on with AI 0:09:05.679 --> 0:09:09.800 workloads right now, and so that should continue to be 0:09:09.840 --> 0:09:13.240 a really healthy tailwind for the ecosystem as a whole. 0:09:13.640 --> 0:09:15.960 The other story or data point I was watching overnight 0:09:16.080 --> 0:09:20.200 is China's iPhone shipments fell thirty three percent in February. 0:09:20.240 --> 0:09:22.240 It's a name that you have a smaller position in, 0:09:22.880 --> 0:09:25.040 but it's really interesting. I mean, let's just focus on 0:09:25.160 --> 0:09:28.120 corporate Apple and China. Is that a data point that 0:09:28.200 --> 0:09:30.160 worries you, Well. 0:09:29.960 --> 0:09:31.239 It's not surprising. 0:09:31.600 --> 0:09:34.880 And it's not surprising because over the last year you've 0:09:34.920 --> 0:09:39.840 seen China actually retaliate somewhat to the restrictions that we've 0:09:39.880 --> 0:09:42.479 placed on them for all of our most valuable intellectual 0:09:42.520 --> 0:09:44.800 property as it relates to the semiconductor ecosist. 0:09:44.880 --> 0:09:47.160 Right, there was the reporting this week from Bloomberg that 0:09:47.240 --> 0:09:51.520 the Chinese government was basically trying to get any server 0:09:51.640 --> 0:09:55.520 designs the power government compute to use domestic semis going forward. 0:09:55.600 --> 0:09:57.000 Yes, but sorry to interropt back. 0:09:57.160 --> 0:09:58.720 Yeah, yeah, no, but that's exactly right. 0:09:58.800 --> 0:10:00.960 And so what they're doing, they're trying to find ways 0:10:01.200 --> 0:10:04.680 where they can actually exert some power and some market influence. 0:10:04.920 --> 0:10:07.880 And that's really tough for Apple because there are saying 0:10:07.880 --> 0:10:11.960 no state owned enterprises. They're starting to extend that. So 0:10:12.000 --> 0:10:15.679 it's incremental demand loss in one of the most important 0:10:15.679 --> 0:10:19.000 markets for Apple globally. Now India's starting to take the 0:10:19.000 --> 0:10:20.160 baton grow faster. 0:10:20.280 --> 0:10:21.280 It's a large market. 0:10:21.559 --> 0:10:24.560 They don't have the purchasing power that actually you have 0:10:24.640 --> 0:10:27.400 in China, not nearly as mature, but that should help out. 0:10:27.440 --> 0:10:30.120 But nonetheless, China is a tough market for Apple, and 0:10:30.160 --> 0:10:34.000 they're inextricably tied to China because of the supply chain 0:10:34.400 --> 0:10:37.960 as well, and so you can't even replicate their supply chain. 0:10:37.960 --> 0:10:39.920 And we point out Apple's only down a tent to 0:10:40.040 --> 0:10:42.920 percent on the news and yeah, yeah, yeah, This last 0:10:42.920 --> 0:10:45.120 week's been fascinating. We have been talking about Apple a 0:10:45.160 --> 0:10:49.360 lot on the show in the context of antitrust antitrust djsuit, 0:10:49.440 --> 0:10:52.480 but also what came out of Europe the DMA probe. 0:10:53.120 --> 0:10:55.720 And for the first time, I'm thinking back to last Thursday, 0:10:55.760 --> 0:10:59.240 to stop falling four percent on a dojsuit, Investors seems 0:10:59.240 --> 0:11:02.080 to be saying, Wow, there is actually a real antitrust 0:11:02.120 --> 0:11:04.880 problem or risk to the stock. Care Is that a 0:11:04.920 --> 0:11:05.839 concern you share? 0:11:06.320 --> 0:11:08.199 Yeah, for a couple of reasons. 0:11:08.240 --> 0:11:12.160 And it's not just the suit that the DOJ brought 0:11:12.200 --> 0:11:17.000 against Apple. I know the stock reacted to that, or 0:11:17.120 --> 0:11:21.640 the digital market case in Europe, but it's also the 0:11:21.720 --> 0:11:26.400 Google tack case on search. Google pays somewhere between twenty 0:11:26.400 --> 0:11:28.760 and twenty five billion dollars a year to Apple that 0:11:28.880 --> 0:11:31.360 is one hundred percent gross profit that drops to the 0:11:31.360 --> 0:11:34.240 bottom line, so it's no surprise they actually potentially are 0:11:34.240 --> 0:11:34.719 doing the deal. 0:11:34.760 --> 0:11:36.640 We gets a lot of praise on his bottom line 0:11:36.640 --> 0:11:38.600 management as well, so it's a pressure point. 0:11:38.720 --> 0:11:40.160 Yeah, yeah, exactly. 0:11:40.200 --> 0:11:41.440 So I think you got to look at it from 0:11:41.480 --> 0:11:44.880 both angles. It could you know, that could be bad 0:11:44.920 --> 0:11:47.000 for Apple, It could actually be good for Google because 0:11:47.040 --> 0:11:49.280 Google doesn't have to pay as much tax for that 0:11:49.400 --> 0:11:52.880 for that placement on the iPhone. But for the first time, 0:11:52.960 --> 0:11:55.000 what you're seeing is you're seeing the DOJ go after 0:11:55.040 --> 0:11:57.120 and say, like, look, it's all right to have a monopoly, 0:11:58.120 --> 0:12:01.400 it's not all right to exercise abuse of power with 0:12:01.520 --> 0:12:04.800 that monopoly. And that's really what the government's saying. The 0:12:04.840 --> 0:12:07.839 thing that's interesting about it, though, is as a consumer, 0:12:08.360 --> 0:12:11.360 you actually opt into that monopoly if you buy an iPhone, 0:12:11.720 --> 0:12:15.120 and so in some ways you could argue Apple's case 0:12:15.400 --> 0:12:19.160 on that side of the ledgers actually pretty strong versus 0:12:19.200 --> 0:12:23.520 compare that to the Google case, where it's default on 0:12:23.559 --> 0:12:26.640 an Android device and then they're forcing you in to 0:12:26.760 --> 0:12:32.959 the Google Play Store. That doesn't seems as valid as 0:12:32.960 --> 0:12:35.720 what Apple should be able to do given what it's 0:12:35.760 --> 0:12:38.120 provided to consumers and the benefit that they get. 0:12:38.360 --> 0:12:40.240 I think what we've thought about is the idea that 0:12:40.280 --> 0:12:42.319 whether it's the suits of the regular taction, they want 0:12:42.320 --> 0:12:45.280 Apple to basically signposts to consumers. You can go elsewhere 0:12:45.320 --> 0:12:48.400 if you want, outside the ecosystem. Denny Fisher, Jannis Henderson. 0:12:48.480 --> 0:12:51.680 You are able to discuss so many corners of this 0:12:51.720 --> 0:12:54.360 technology market. We love having you on the program. Now 0:12:54.360 --> 0:12:57.640 coming up on the technology Ali Baba Pause, it's planned 0:12:57.679 --> 0:13:00.400 IPO for its logistics. We're going to bring you those 0:13:00.400 --> 0:13:05.600 details next the flat though, on the usadrs of Ali Baba. 0:13:05.800 --> 0:13:11.120 This is Bloomberg Technology. 0:13:17.360 --> 0:13:20.720 Ali Barber is calling off an initial public offering for 0:13:20.800 --> 0:13:24.559 its now Logistics arm, which had been a much anticipated 0:13:24.640 --> 0:13:28.400 debut that could have raised more than one billion dollars more. 0:13:28.480 --> 0:13:30.720 Let's bring in bloombergs Isabell Lee out in New York. 0:13:31.040 --> 0:13:34.120 The big question is why they've pulled the IPO. 0:13:34.840 --> 0:13:37.440 Why it's really just because of poor market conditions. As 0:13:37.480 --> 0:13:39.840 a stock way, the company lost interest. As we know 0:13:40.160 --> 0:13:43.199 the Hong Kong and Chinese stock market aren't doing so well. 0:13:43.320 --> 0:13:45.320 But we have no indication for now that they will 0:13:45.320 --> 0:13:48.080 list elsewhere. But this also doesn't mean that Ali Baba 0:13:48.080 --> 0:13:50.760 won't be reviving this IPO soon. So they filed for 0:13:50.840 --> 0:13:53.560 paperwork in September and choose their mark the end of 0:13:53.600 --> 0:13:55.800 that six month period in which they had to update it, 0:13:56.000 --> 0:13:58.200 and so they said, nope, we're pulling up. But instead 0:13:58.440 --> 0:14:00.920 they're going to buy out all their mating stock held 0:14:00.920 --> 0:14:04.400 by employees and investors for three point seventy five billion dollars. 0:14:04.400 --> 0:14:06.240 So that's instead what they're doing. And of course we 0:14:06.280 --> 0:14:09.400 have Ali Baba chairman Joseph Tai saying that you know, 0:14:09.440 --> 0:14:11.800 this is an appropriate time to double down on Ali 0:14:11.800 --> 0:14:13.800 Baba's investment in TIN now. So for now they have 0:14:13.840 --> 0:14:16.640 around a sixty four percent stick and soon after that 0:14:16.720 --> 0:14:17.720 it'll be one hundred percent. 0:14:18.880 --> 0:14:22.120 It's there's been some inconsistency on what is or what 0:14:22.200 --> 0:14:25.960 is not happening with the spinning off of various listings, 0:14:26.000 --> 0:14:30.840 So now is important, right is the logistics arm market 0:14:30.840 --> 0:14:33.600 conditions are one thing, but how surprising is a kind 0:14:33.640 --> 0:14:36.720 of u turn on a decision for a major financial 0:14:36.760 --> 0:14:38.320 transaction I. 0:14:38.280 --> 0:14:41.480 Think it's surprising, but not that surprising because this isn't 0:14:41.560 --> 0:14:44.760 the first high profile IPO that Ali Baba nixt. They 0:14:44.840 --> 0:14:48.680 also in twenty twenty three halted their eleven billion IPO 0:14:48.680 --> 0:14:51.160 of their cloud arm and they also halted the IPO 0:14:51.280 --> 0:14:54.400 of their grocery unit, which is freship posed. So this 0:14:54.520 --> 0:14:56.720 is going to be the third that we know or 0:14:56.720 --> 0:14:59.680 that we're talking about. And it's really interesting because remember 0:14:59.800 --> 0:15:03.000 last everyone made a big deal about the historic shakeup 0:15:03.000 --> 0:15:05.480 of Ali Baba, and it's twenty five year history. Suddenly 0:15:05.520 --> 0:15:07.560 the company came out and said, you know what, We're 0:15:07.560 --> 0:15:09.600 going to break up in the six baby babas as 0:15:09.640 --> 0:15:12.760 Tim Kalplan of Bloomberg Opinion said, but we haven't seen 0:15:12.840 --> 0:15:16.000 any of that. We have Bloomberg Intelligence saying that instead 0:15:16.000 --> 0:15:20.520 of seeing instead of seeing this playout, we're seeing a 0:15:20.640 --> 0:15:24.360 retraction and we don't know how this will play out 0:15:24.360 --> 0:15:26.480 in the future. A lot of people were looking to 0:15:26.520 --> 0:15:29.200 this as a blueprint because Ali Baba is often seen 0:15:29.240 --> 0:15:31.720 as a barometer of the Chinese economy, being one of 0:15:31.720 --> 0:15:34.360 the biggest companies in China. So they were like, we'll 0:15:34.360 --> 0:15:36.680 see if this will work out, but for now, no 0:15:36.800 --> 0:15:37.680 science yet. 0:15:38.480 --> 0:15:41.000 Bloombergs Isabellie, thank you very much. Okay. 0:15:41.080 --> 0:15:45.760 Sticking with corporate news, we were co founder Adam Newman 0:15:45.920 --> 0:15:49.880 and financing partners submitted an offer to buy the bankrupt 0:15:49.880 --> 0:15:53.560 company for more than five hundred million dollars, according to 0:15:53.600 --> 0:15:58.120 a representative for his real estate company. Bloomberg's Max Chafkin 0:15:58.200 --> 0:16:01.880 joins me with the details. Adam Newman and a conshortum 0:16:03.320 --> 0:16:07.160 trying to buy bankrupt We Work for five hundred million 0:16:07.240 --> 0:16:07.920 US dollars. 0:16:08.120 --> 0:16:10.440 Explain, yeah, I. 0:16:10.360 --> 0:16:11.200 Mean Adam Newman. 0:16:11.280 --> 0:16:15.640 Of course, former CEO of We Work left the company 0:16:15.880 --> 0:16:18.720 after taking it to kind of dizzying heights, you know, 0:16:19.080 --> 0:16:22.160 evaluation that was you know, it thought to be you know, 0:16:22.200 --> 0:16:25.000 close to fifty billion at one point. Now, of course, 0:16:25.000 --> 0:16:29.560 the company is is bankrupt. Adam Newman, you know, very 0:16:29.560 --> 0:16:33.280 good salesperson. You know, has a lot of respect from 0:16:33.320 --> 0:16:35.480 from at least some investors in Silicon Valley who are 0:16:35.520 --> 0:16:38.320 willing to sort of look past, you know, some of 0:16:38.320 --> 0:16:41.280 the missteps with We Work. He also just clearly you know, 0:16:41.400 --> 0:16:44.080 loves this company, right, I mean he was very invested 0:16:44.400 --> 0:16:47.800 in this spiritual idea of we Work, you know, and 0:16:47.800 --> 0:16:49.560 and we lived there are all these there's all this 0:16:49.800 --> 0:16:52.120 additional stuff. So now he's it's like he's saying, you know, we. 0:16:52.200 --> 0:16:56.960 Back, we back Max Chefkin. My goodness. 0:16:57.440 --> 0:17:00.320 When we Work filed for bankruptcy, it did so with 0:17:00.480 --> 0:17:04.359 nineteen billion dollars of liabilities. And I think that that 0:17:04.400 --> 0:17:07.840 there are probably many questions, many more than answers right now. 0:17:07.880 --> 0:17:10.720 But do we have a sense of how Adam Newman 0:17:10.800 --> 0:17:15.760 is going to finance this? His plan for we Work 0:17:15.960 --> 0:17:18.960 version two point oh, three point oh, four point oh whatever, 0:17:18.960 --> 0:17:20.600 the version it is that we're at now. 0:17:21.560 --> 0:17:23.720 Okay, Well, I mean I think they're basically two options. 0:17:23.760 --> 0:17:27.439 One is, you know, the core of Weework's business was 0:17:27.520 --> 0:17:32.359 pretty straightforward, right finding offices, are signing leases and then 0:17:32.400 --> 0:17:35.080 dividing them up and reselling them. Now, part of what 0:17:35.160 --> 0:17:37.640 happened here is that they expanded too quickly. They raised 0:17:37.680 --> 0:17:40.280 huge amounts of money from SoftBank. Adam Newman was like 0:17:40.280 --> 0:17:42.320 a master of hype and sort of got ahead. 0:17:42.040 --> 0:17:42.680 Of his skis. 0:17:43.400 --> 0:17:45.480 There's a version of this right where you use the 0:17:45.520 --> 0:17:49.840 bankruptcy proceeding to renegotiate these leases to get the costs, 0:17:49.960 --> 0:17:53.280 you know, back in control, and you have a smaller. 0:17:53.200 --> 0:17:54.440 But sensible business. 0:17:54.640 --> 0:17:56.920 The other option, which I have to think is a 0:17:56.960 --> 0:17:59.960 possibility given who we're talking about, is you know, restore 0:18:00.000 --> 0:18:02.960 at the hype train. Adam Newman started this other company 0:18:03.000 --> 0:18:06.960 Flow with backing from Andrees and Horowitz. They've said, you know, 0:18:07.000 --> 0:18:09.000 they still believe in him. They think he's you know, 0:18:09.000 --> 0:18:12.560 a great entrepreneur. So you could imagine some sort of 0:18:12.600 --> 0:18:15.960 effort to sort of do this thing all over again 0:18:16.320 --> 0:18:20.600 after you know, one expects renegotiating, trying to get again, 0:18:20.640 --> 0:18:20.960 trying to. 0:18:20.920 --> 0:18:22.040 Get the costs under control. 0:18:23.359 --> 0:18:26.840 Boomer's Max chefkin on Adam Newman's five hundred million dollar 0:18:26.920 --> 0:18:27.440 bid to. 0:18:27.440 --> 0:18:30.119 Buy back We Work, We Back. 0:18:38.520 --> 0:18:43.320 Autonomous drone delivery company drone up is rethinking last mile delivery. 0:18:43.320 --> 0:18:48.240 The startups unveiled what it calls ecosystem, integrating ground, air 0:18:48.640 --> 0:18:52.240 and software products into a single platform. Joining me now 0:18:52.280 --> 0:18:55.480 with more is drowne Up CEO Tom Walker. And you know, 0:18:55.520 --> 0:18:57.520 I think where I want to start, Tom is why 0:18:57.640 --> 0:18:59.440 go beyond just being a drone company? 0:18:59.480 --> 0:19:00.160 Why did you. 0:19:00.320 --> 0:19:03.680 Need to make a system and a technology that says 0:19:04.040 --> 0:19:07.200 here is the all encompassing last mile drone package. 0:19:08.520 --> 0:19:10.760 Well, thank you for having me, I mean long, for long, 0:19:10.840 --> 0:19:13.959 leaders have insisted industry leaders that drones are the answer 0:19:14.000 --> 0:19:17.040 to the last mile problem, but we really haven't attacked 0:19:17.080 --> 0:19:20.920 it correctly. We've tried to fix it with simply using drones, 0:19:20.920 --> 0:19:23.159 which is like a transportation company trying to fix the 0:19:23.240 --> 0:19:24.840 last mile logistics problem. 0:19:24.560 --> 0:19:25.600 By getting a better truck. 0:19:26.400 --> 0:19:29.320 In order to be able to lower cost, you have 0:19:29.359 --> 0:19:32.280 to decrease labor. You have to provide a way that 0:19:33.359 --> 0:19:37.320 retailers can get the product onto the drones quickly and efficiently, 0:19:37.400 --> 0:19:40.240 and also be able to deliver to those hundred million 0:19:40.280 --> 0:19:43.320 plus Americans who don't live in single family homes and 0:19:43.320 --> 0:19:45.080 don't have yards or ports to deliver to. 0:19:46.240 --> 0:19:48.840 We're showing video of how the system works. Right, you 0:19:48.880 --> 0:19:53.160 load your package into the ground unit, the drone lands, 0:19:53.280 --> 0:19:56.160 the package is raised up and attached to the drone, 0:19:56.440 --> 0:19:59.480 and off you go. It seems simple. Who's actually going 0:19:59.560 --> 0:20:01.399 to be using this? Tom Do you have any signed 0:20:01.440 --> 0:20:02.119 up customers? 0:20:03.520 --> 0:20:06.159 We do, But what we've done with our customers is 0:20:06.160 --> 0:20:07.879 that we're going to allow them to have the moment. 0:20:07.880 --> 0:20:10.560 We're going to be rolling both this and our next 0:20:10.600 --> 0:20:11.960 generation drone out. 0:20:12.080 --> 0:20:13.080 In the next quarter. 0:20:13.640 --> 0:20:16.600 We're going to be in some top retailers, top convenience 0:20:16.640 --> 0:20:19.560 and top quick service restaurants. I'd say stand by for 0:20:19.600 --> 0:20:22.560 the announcement. We're going to allow them to make those 0:20:22.600 --> 0:20:25.080