Speaker 1: We're from Marhard.
Speaker 2: We're Innovation of Money and Power Collie in Silicon Valley NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde.
Speaker 1: And Ed Ludlow.
Speaker 3: I met Ludlow in San Francisco. Caroline Hyde is off.
Speaker 3: This is Bloomberg Technology coming up from AI to antitrust, angiopolitics.
Speaker 3: We'll get the full read on the tech sector with
Speaker 3: Denny Fish of Janis Henderson.
Speaker 4: Plus we'll hone in on some corporate.
Speaker 3: News as Ali Barba calls off its planned IPO of
Speaker 3: Canal which could have raised more than one billion dollars,
Speaker 3: and we get the read from inside the c suite.
Speaker 3: Later this hour will be joined by Marissa Mayer and
Speaker 3: by Danny Garcia, the powerhouse behind Dwayne the Rock Johnson.
Speaker 3: But first we want to bring you some important updates
Speaker 3: on the search and rescue mission underway in Baltimore after
Speaker 3: the Francis Scott Key Bridge collapsed early this morning when
Speaker 3: a cargo ship struck the major transportation route. This is
Speaker 3: a live feed of the Padapsco River and the wreckage
Speaker 3: from that crash. Right now, search and rescue is the
Speaker 3: primary focus in Baltimore. There are also major implications for
Speaker 3: global trade as the Port of Baltimore is the largest
Speaker 3: handler of US imports and exports of cars and light trucks.
Speaker 3: The FAA has currently restricted drone flights near to the bridge.
Speaker 3: US Homeland Security Secretary Alejandro Majorcas said in a post
Speaker 3: on x that the Coast Guard is on the scene
Speaker 3: to assist local partners and is quote actively involved in
Speaker 3: the search and rescue mission. We're expecting to hear from
Speaker 3: President Biden later today and will continue to bring you
Speaker 3: updates on the situation in Baltimore.
Speaker 4: Throughout this hour.
Speaker 3: Okay, sticking with what's happening in markets, this is the
Speaker 3: Nasdaq one hundred up three tens and one percent. Remember
Speaker 3: we're coming off the best week of the year so
Speaker 3: far last week.
Speaker 4: The tech sector playing a role in that.
Speaker 3: We're gonna have a conversation about Nvidia softer by half
Speaker 3: a percentage point. But when you're a two trillion dollar
Speaker 3: market cap company, you pay attention to that. Yields creeping
Speaker 3: a little bit higher four point twenty six percent of
Speaker 3: the US ten year and bitcoin is staying above seventy
Speaker 3: thousand US dollars per token. There was that big move
Speaker 3: just before the show. Actually twenty four hours ago higher
Speaker 3: towards seventy thousand US dollars per token. That market's picture
Speaker 3: is kind of a wait and see moment because of
Speaker 3: all the FED speak that's due to come in the
Speaker 3: coming weeks. Let's get back to Baltimore and stick with
Speaker 3: the collapse of Baltimore's key bridge. You're looking at some
Speaker 3: of the automotive names because, as we have stressed, that port,
Speaker 3: whilst small in the context of US ports, is the
Speaker 3: biggest handler of import exports for car and light trucks.
Speaker 3: In the last hour, we spoke to the CFO of
Speaker 3: Ford and got his real time reaction to the broader
Speaker 3: implications of what's happening.
Speaker 4: Have a listen.
Speaker 5: It's a large port with a lot of flow through it,
Speaker 5: so it's going to have an impact. It's just at
Speaker 5: this point we'll have to understand what that means for
Speaker 5: us Specifically, we'll work on the workarounds. We'll have to
Speaker 5: divert parts to other ports along the East Coast or
Speaker 5: elsewhere in the country, and it'll probably lengthen the supply
Speaker 5: chain a bit.
Speaker 4: It's a developing situation.
Speaker 3: Ford CFO talking about having to divert parts to other
Speaker 3: ports on the East coast. How serious is this? What
Speaker 3: is the impact of the economy and supply chain? So
Speaker 3: let's bring a Denny Fish, portfolio manager of the Global
Speaker 3: Technology and Innovation Team over at Janis Henderson Investors, and
Speaker 3: Denny while we have you here. You know you wake
Speaker 3: up to news like this as a money manager, how
Speaker 3: do you feel about it?
Speaker 6: Well, it's a tragedy, of course, and you just hope
Speaker 6: that the people that are unaccounted for are.
Speaker 1: Brought back safely, hopefully.
Speaker 6: But from an economic standpoint, it's too early to tell.
Speaker 6: It's nothing like we faced during COVID when we had
Speaker 6: severe shortages of components throughout the entire automotive supply chain.
Speaker 6: We can get the parts here through other ports. It
Speaker 6: just might take a little more time and it might
Speaker 6: be a little more expensive, But that's how I would
Speaker 6: think about it. But not a material impact to the
Speaker 6: tech ecosystem anyway.
Speaker 3: Well quite, I mean I remember so many days spent
Speaker 3: at the Port of Los Angeles, literally days and weeks
Speaker 3: down there. Part of that story was inflation. Right now,
Speaker 3: we're try and tie together what's happening in the economy
Speaker 3: with the tech sector. How closely are you waiting on
Speaker 3: the Fed, and how nervous are you each day, Denny,
Speaker 3: I know you're not a very nervous person about inflation
Speaker 3: and what the Fed's going to when the Fed's going
Speaker 3: to pull the trigger.
Speaker 1: Yeah.
Speaker 6: I think what's happened with inflation is it's come down
Speaker 6: a lot. There's still some sticky elements to it, and
Speaker 6: maybe we don't get as many cuts from the FED
Speaker 6: as we thought we might towards the end of last year.
Speaker 6: But nonetheless, I think the direction of travel is that
Speaker 6: the FED will start to ease at some point.
Speaker 1: It's just that pace of easy.
Speaker 6: Might not be as aggressive as as one might have
Speaker 6: expected a couple months ago, but that's still that's good
Speaker 6: for stimulating the economy.
Speaker 4: Denny.
Speaker 3: We're his talk about technology, and I think we cannot
Speaker 3: do that about speaking about Nvidia. It's an important name
Speaker 3: for you and your fund. We're soft to six tenso
Speaker 3: percent right now. There's a brilliant story on the Bloomberg
Speaker 3: and Vidia traders find reasons to worry beyond sky high
Speaker 3: stock price. I know that the gain in the price
Speaker 3: is something you have reacted to and you consider, but
Speaker 3: the logic outlined in the story is that a lot
Speaker 3: of the potential gains from Nvidia. The feel good it's
Speaker 3: been brought forward and happened in a very condensed space
Speaker 3: of time. Just give me your thesis on in video
Speaker 3: right now.
Speaker 1: Yeah.
Speaker 6: Absolutely, So if we actually look back to last year,
Speaker 6: it was something similar. Most of the game from the
Speaker 6: stock actually came in the first half of the year,
Speaker 6: particularly Q two, after it really became known just how
Speaker 6: big of a supply demand and balance that we had
Speaker 6: for GPUs. You could argue this year, maybe the same
Speaker 6: thing has happened. I mean, the stock's put on a
Speaker 6: trillion dollars in market cap. Yes, since the beginning of
Speaker 6: the year. It's pretty much unprecedented. But what's important about it,
Speaker 6: and I think this is what makes it hard from
Speaker 6: an investor standpoint, and that is the reason the stock's
Speaker 6: gone up so much, is because earnings have gone up
Speaker 6: so much.
Speaker 1: If we go back eighteen.
Speaker 6: Months ago, I think the street thought in Nvidia might
Speaker 6: earn some somewhere around five dollars a share this year,
Speaker 6: and that's probably going to be closer to twenty five dollars.
Speaker 1: So the stock actually if you.
Speaker 6: Look at the earnings multiple on twenty twenty five, it's
Speaker 6: actually still quite reasonable. Now we can argue what might
Speaker 6: happen as supplied demand comes into balance, but nonetheless, you know,
Speaker 6: the demand profile out there remains unprecedented and evaluation remains reasonable.
Speaker 3: For showing some animation of Blackwell, Yep, how big a
Speaker 3: moment was Blackwell for you?
Speaker 6: Yeah, it's actually a big moment because it's a continuation
Speaker 6: of how Nvidia has been innovating over the last several years,
Speaker 6: and importantly a couple things. It really focuses on price,
Speaker 6: performance and power consumption, which are.
Speaker 1: Two big issues for GPUs.
Speaker 6: I mean, it doesn't get as much attention, but power's
Speaker 6: probably the single biggest constraint to deploying inference across the
Speaker 6: global economy because of just the inability to get enough
Speaker 6: power into these data centers and then you have to
Speaker 6: cool them as well, and you know, there's a lot
Speaker 6: that comes along with that. But the other thing is,
Speaker 6: you know, Blackwell is going to be less expensive, right
Speaker 6: the H one hundred and so that also shows you
Speaker 6: in Vidia's confidence that the visibility that they have and
Speaker 6: to demand that they can actually start lowering the price
Speaker 6: despite there effectively being no elastics.
Speaker 4: See that's my final question on an video.
Speaker 3: I was in the room for ninety minutes with Jensen,
Speaker 3: and he basically said, starting this year, the data center
Speaker 3: business is two hundred and fifty billion dollars per annum,
Speaker 3: but he was talking about growth rates of twenty to
Speaker 3: twenty five percent. What's still not clear to me is
Speaker 3: like the tipping point from where the majority of that
Speaker 3: is training to inference, because I.
Speaker 4: Don't think in videos talks as much about inference.
Speaker 3: AMD came out really hard with the inference story. Just
Speaker 3: how much did you buy I guess the soft guidance
Speaker 3: that he was giving.
Speaker 1: Yeah, it seems reasonable.
Speaker 6: And actually on their last call, if I remember correctly,
Speaker 6: they actually talked about inference now has crossed over half
Speaker 6: of workloads relative to training. Now AMD needs to talk
Speaker 6: about inference because in videos pretty much won the training market,
Speaker 6: and so the next prize out there is inference and
Speaker 6: inferences is going to be It's going to be multiples
Speaker 6: of the market opportunity that training is because this is
Speaker 6: how you deploy it. It's like developing something and then
Speaker 6: putting it into production. That's what's going on with AI
Speaker 6: workloads right now, and so that should continue to be
Speaker 6: a really healthy tailwind for the ecosystem as a whole.
Speaker 3: The other story or data point I was watching overnight
Speaker 3: is China's iPhone shipments fell thirty three percent in February.
Speaker 3: It's a name that you have a smaller position in,
Speaker 3: but it's really interesting. I mean, let's just focus on
Speaker 3: corporate Apple and China. Is that a data point that
Speaker 3: worries you, Well.
Speaker 1: It's not surprising.
Speaker 6: And it's not surprising because over the last year you've
Speaker 6: seen China actually retaliate somewhat to the restrictions that we've
Speaker 6: placed on them for all of our most valuable intellectual
Speaker 6: property as it relates to the semiconductor ecosist.
Speaker 3: Right, there was the reporting this week from Bloomberg that
Speaker 3: the Chinese government was basically trying to get any server
Speaker 3: designs the power government compute to use domestic semis going forward.
Speaker 4: Yes, but sorry to interropt back.
Speaker 1: Yeah, yeah, no, but that's exactly right.
Speaker 6: And so what they're doing, they're trying to find ways
Speaker 6: where they can actually exert some power and some market influence.
Speaker 6: And that's really tough for Apple because there are saying
Speaker 6: no state owned enterprises. They're starting to extend that. So
Speaker 6: it's incremental demand loss in one of the most important
Speaker 6: markets for Apple globally. Now India's starting to take the
Speaker 6: baton grow faster.
Speaker 1: It's a large market.
Speaker 6: They don't have the purchasing power that actually you have
Speaker 6: in China, not nearly as mature, but that should help out.
Speaker 6: But nonetheless, China is a tough market for Apple, and
Speaker 6: they're inextricably tied to China because of the supply chain
Speaker 6: as well, and so you can't even replicate their supply chain.
Speaker 3: And we point out Apple's only down a tent to
Speaker 3: percent on the news and yeah, yeah, yeah, This last
Speaker 3: week's been fascinating. We have been talking about Apple a
Speaker 3: lot on the show in the context of antitrust antitrust djsuit,
Speaker 3: but also what came out of Europe the DMA probe.
Speaker 3: And for the first time, I'm thinking back to last Thursday,
Speaker 3: to stop falling four percent on a dojsuit, Investors seems
Speaker 3: to be saying, Wow, there is actually a real antitrust
Speaker 3: problem or risk to the stock. Care Is that a
Speaker 3: concern you share?
Speaker 1: Yeah, for a couple of reasons.
Speaker 6: And it's not just the suit that the DOJ brought
Speaker 6: against Apple. I know the stock reacted to that, or
Speaker 6: the digital market case in Europe, but it's also the
Speaker 6: Google tack case on search. Google pays somewhere between twenty
Speaker 6: and twenty five billion dollars a year to Apple that
Speaker 6: is one hundred percent gross profit that drops to the
Speaker 6: bottom line, so it's no surprise they actually potentially are
Speaker 6: doing the deal.
Speaker 3: We gets a lot of praise on his bottom line
Speaker 3: management as well, so it's a pressure point.
Speaker 1: Yeah, yeah, exactly.
Speaker 6: So I think you got to look at it from
Speaker 6: both angles. It could you know, that could be bad
Speaker 6: for Apple, It could actually be good for Google because
Speaker 6: Google doesn't have to pay as much tax for that
Speaker 6: for that placement on the iPhone. But for the first time,
Speaker 6: what you're seeing is you're seeing the DOJ go after
Speaker 6: and say, like, look, it's all right to have a monopoly,
Speaker 6: it's not all right to exercise abuse of power with
Speaker 6: that monopoly. And that's really what the government's saying. The
Speaker 6: thing that's interesting about it, though, is as a consumer,
Speaker 6: you actually opt into that monopoly if you buy an iPhone,
Speaker 6: and so in some ways you could argue Apple's case
Speaker 6: on that side of the ledgers actually pretty strong versus
Speaker 6: compare that to the Google case, where it's default on
Speaker 6: an Android device and then they're forcing you in to
Speaker 6: the Google Play Store. That doesn't seems as valid as
Speaker 6: what Apple should be able to do given what it's
Speaker 6: provided to consumers and the benefit that they get.
Speaker 3: I think what we've thought about is the idea that
Speaker 3: whether it's the suits of the regular taction, they want
Speaker 3: Apple to basically signposts to consumers. You can go elsewhere
Speaker 3: if you want, outside the ecosystem. Denny Fisher, Jannis Henderson.
Speaker 3: You are able to discuss so many corners of this
Speaker 3: technology market. We love having you on the program. Now
Speaker 3: coming up on the technology Ali Baba Pause, it's planned
Speaker 3: IPO for its logistics. We're going to bring you those
Speaker 3: details next the flat though, on the usadrs of Ali Baba.
Speaker 4: This is Bloomberg Technology.
Speaker 3: Ali Barber is calling off an initial public offering for
Speaker 3: its now Logistics arm, which had been a much anticipated
Speaker 3: debut that could have raised more than one billion dollars more.
Speaker 3: Let's bring in bloombergs Isabell Lee out in New York.
Speaker 3: The big question is why they've pulled the IPO.
Speaker 7: Why it's really just because of poor market conditions. As
Speaker 7: a stock way, the company lost interest. As we know
Speaker 7: the Hong Kong and Chinese stock market aren't doing so well.
Speaker 7: But we have no indication for now that they will
Speaker 7: list elsewhere. But this also doesn't mean that Ali Baba
Speaker 7: won't be reviving this IPO soon. So they filed for
Speaker 7: paperwork in September and choose their mark the end of
Speaker 7: that six month period in which they had to update it,
Speaker 7: and so they said, nope, we're pulling up. But instead
Speaker 7: they're going to buy out all their mating stock held
Speaker 7: by employees and investors for three point seventy five billion dollars.
Speaker 7: So that's instead what they're doing. And of course we
Speaker 7: have Ali Baba chairman Joseph Tai saying that you know,
Speaker 7: this is an appropriate time to double down on Ali
Speaker 7: Baba's investment in TIN now. So for now they have
Speaker 7: around a sixty four percent stick and soon after that
Speaker 7: it'll be one hundred percent.
Speaker 3: It's there's been some inconsistency on what is or what
Speaker 3: is not happening with the spinning off of various listings,
Speaker 3: So now is important, right is the logistics arm market
Speaker 3: conditions are one thing, but how surprising is a kind
Speaker 3: of u turn on a decision for a major financial
Speaker 3: transaction I.
Speaker 7: Think it's surprising, but not that surprising because this isn't
Speaker 7: the first high profile IPO that Ali Baba nixt. They
Speaker 7: also in twenty twenty three halted their eleven billion IPO
Speaker 7: of their cloud arm and they also halted the IPO
Speaker 7: of their grocery unit, which is freship posed. So this
Speaker 7: is going to be the third that we know or
Speaker 7: that we're talking about. And it's really interesting because remember
Speaker 7: last everyone made a big deal about the historic shakeup
Speaker 7: of Ali Baba, and it's twenty five year history. Suddenly
Speaker 7: the company came out and said, you know what, We're
Speaker 7: going to break up in the six baby babas as
Speaker 7: Tim Kalplan of Bloomberg Opinion said, but we haven't seen
Speaker 7: any of that. We have Bloomberg Intelligence saying that instead
Speaker 7: of seeing instead of seeing this playout, we're seeing a
Speaker 7: retraction and we don't know how this will play out
Speaker 7: in the future. A lot of people were looking to
Speaker 7: this as a blueprint because Ali Baba is often seen
Speaker 7: as a barometer of the Chinese economy, being one of
Speaker 7: the biggest companies in China. So they were like, we'll
Speaker 7: see if this will work out, but for now, no
Speaker 7: science yet.
Speaker 4: Bloombergs Isabellie, thank you very much. Okay.
Speaker 3: Sticking with corporate news, we were co founder Adam Newman
Speaker 3: and financing partners submitted an offer to buy the bankrupt
Speaker 3: company for more than five hundred million dollars, according to
Speaker 3: a representative for his real estate company. Bloomberg's Max Chafkin
Speaker 3: joins me with the details. Adam Newman and a conshortum
Speaker 3: trying to buy bankrupt We Work for five hundred million
Speaker 3: US dollars.
Speaker 4: Explain, yeah, I.
Speaker 1: Mean Adam Newman.
Speaker 8: Of course, former CEO of We Work left the company
Speaker 8: after taking it to kind of dizzying heights, you know,
Speaker 8: evaluation that was you know, it thought to be you know,
Speaker 8: close to fifty billion at one point. Now, of course,
Speaker 8: the company is is bankrupt. Adam Newman, you know, very
Speaker 8: good salesperson. You know, has a lot of respect from
Speaker 8: from at least some investors in Silicon Valley who are
Speaker 8: willing to sort of look past, you know, some of
Speaker 8: the missteps with We Work. He also just clearly you know,
Speaker 8: loves this company, right, I mean he was very invested
Speaker 8: in this spiritual idea of we Work, you know, and
Speaker 8: and we lived there are all these there's all this
Speaker 8: additional stuff. So now he's it's like he's saying, you know, we.
Speaker 4: Back, we back Max Chefkin. My goodness.
Speaker 3: When we Work filed for bankruptcy, it did so with
Speaker 3: nineteen billion dollars of liabilities. And I think that that
Speaker 3: there are probably many questions, many more than answers right now.
Speaker 3: But do we have a sense of how Adam Newman
Speaker 3: is going to finance this? His plan for we Work
Speaker 3: version two point oh, three point oh, four point oh whatever,
Speaker 3: the version it is that we're at now.
Speaker 4: Okay, Well, I mean I think they're basically two options.
Speaker 8: One is, you know, the core of Weework's business was
Speaker 8: pretty straightforward, right finding offices, are signing leases and then
Speaker 8: dividing them up and reselling them. Now, part of what
Speaker 8: happened here is that they expanded too quickly. They raised
Speaker 8: huge amounts of money from SoftBank. Adam Newman was like
Speaker 8: a master of hype and sort of got ahead.
Speaker 4: Of his skis.
Speaker 8: There's a version of this right where you use the
Speaker 8: bankruptcy proceeding to renegotiate these leases to get the costs,
Speaker 8: you know, back in control, and you have a smaller.
Speaker 1: But sensible business.
Speaker 8: The other option, which I have to think is a
Speaker 8: possibility given who we're talking about, is you know, restore
Speaker 8: at the hype train. Adam Newman started this other company
Speaker 8: Flow with backing from Andrees and Horowitz. They've said, you know,
Speaker 8: they still believe in him. They think he's you know,
Speaker 8: a great entrepreneur. So you could imagine some sort of
Speaker 8: effort to sort of do this thing all over again
Speaker 8: after you know, one expects renegotiating, trying to get again,
Speaker 8: trying to.
Speaker 9: Get the costs under control.
Speaker 3: Boomer's Max chefkin on Adam Newman's five hundred million dollar
Speaker 3: bid to.
Speaker 4: Buy back We Work, We Back.
Speaker 3: Autonomous drone delivery company drone up is rethinking last mile delivery.
Speaker 3: The startups unveiled what it calls ecosystem, integrating ground, air
Speaker 3: and software products into a single platform. Joining me now
Speaker 3: with more is drowne Up CEO Tom Walker. And you know,
Speaker 3: I think where I want to start, Tom is why
Speaker 3: go beyond just being a drone company?
Speaker 4: Why did you.
Speaker 3: Need to make a system and a technology that says
Speaker 3: here is the all encompassing last mile drone package.
Speaker 2: Well, thank you for having me, I mean long, for long,
Speaker 2: leaders have insisted industry leaders that drones are the answer
Speaker 2: to the last mile problem, but we really haven't attacked
Speaker 2: it correctly. We've tried to fix it with simply using drones,
Speaker 2: which is like a transportation company trying to fix the
Speaker 2: last mile logistics problem.
Speaker 1: By getting a better truck.
Speaker 2: In order to be able to lower cost, you have
Speaker 2: to decrease labor. You have to provide a way that
Speaker 2: retailers can get the product onto the drones quickly and efficiently,
Speaker 2: and also be able to deliver to those hundred million
Speaker 2: plus Americans who don't live in single family homes and
Speaker 2: don't have yards or ports to deliver to.
Speaker 3: We're showing video of how the system works. Right, you
Speaker 3: load your package into the ground unit, the drone lands,
Speaker 3: the package is raised up and attached to the drone,
Speaker 3: and off you go. It seems simple. Who's actually going
Speaker 3: to be using this? Tom Do you have any signed
Speaker 3: up customers?
Speaker 2: We do, But what we've done with our customers is
Speaker 2: that we're going to allow them to have the moment.
Speaker 2: We're going to be rolling both this and our next
Speaker 2: generation drone out.
Speaker 1: In the next quarter.
Speaker 2: We're going to be in some top retailers, top convenience
Speaker 2: and top quick service restaurants. I'd say stand by for
Speaker 2: the announcement. We're going to allow them to make those
Speaker 2: announcements because we believe it's a big leap forward for
Speaker 2: them and an opportunity to utilize our technology.
Speaker 1: It's coming next quarter.
Speaker 3: Okay, Well, Tom, I'm sure our Bloomboy Technology audience wouldn't
Speaker 3: mind you you sharing with us those names, particularly on
Speaker 3: the QSR side. So give me a sense of how
Speaker 3: quickly you can scale this. You know, I've done a
Speaker 3: lot in Arkansas, for example, about what Walmart was doing
Speaker 3: with Zipline in the last mile context. But that is
Speaker 3: a small scale pilot, and they often are small scale pilots.
Speaker 3: Convince me and our audience that this can be real
Speaker 3: in the real world at scale.
Speaker 1: Yeah.
Speaker 2: So our technology is integrated from our airspace management that
Speaker 2: manages the airspace to the ground infrastructure that autoloads powered behind.
Speaker 2: It is a very sophisticated logistics system that ensures we
Speaker 2: get the package you want, when you want it and
Speaker 2: where you want it. Each of this units, this DBX
Speaker 2: technology that we created, it's like an Internet of things.
Speaker 2: All it requires is power, so you set it in
Speaker 2: it's smaller than a parking space. It powers on and
Speaker 2: with fifteen within fifteen minutes. It's part of the ecosystem,
Speaker 2: and so drones move throughout the ecosystem autonomously and are
Speaker 2: able to heat surge demands here and decrease demands in
Speaker 2: other areas. Again, seventy four percent of the cost and
Speaker 2: labor of drone operations or drone delivery operations is labor.
Speaker 2: This system essentially eliminates that labor, both on the pickup
Speaker 2: side and the delivery side. And so if you're going
Speaker 2: to bring those costs down, you have to start by
Speaker 2: eliminating labor. And remember this configuration you're seeing here is
Speaker 2: just one. It could be on a roof, it could
Speaker 2: be integrated with a fulfillment system.
Speaker 1: It will scale very very quickly. It creates a more
Speaker 1: affordable approach.
Speaker 3: All right, drone up, CEO, Tom Walker, come back when
Speaker 3: you're ready to announce those customers.
Speaker 4: Thank you.
Speaker 3: Coming up on Bloomberg technology, Starlink's effectiveness as a commons
Speaker 3: tour is making the satellite internet service a target for
Speaker 3: a growing black market trade. We bring you the Bloomberg
Speaker 3: Big Take and some key key reporting.
Speaker 4: This is Bloomberg.
Speaker 3: Welcome back to Bloomberg Technology, Ed Lardlow here in San Francisco.
Speaker 3: Today's Bloomberg Big Take elon musk Starlink's terminals have hit
Speaker 3: the black market. A Bloomberg News investigation has identified wide
Speaker 3: spanning examples of Starlet kits being traded and activated illegally
Speaker 3: in countries all around the world. Here with more on
Speaker 3: the stories Bloomberg's Space editor Eric Johnson the Big Take,
Speaker 3: and the investigation identifies a number of countries, many of
Speaker 3: them areas of conflict where this is happening illegally obtained
Speaker 3: starlink ground receiver being activated.
Speaker 4: Bring us the details.
Speaker 10: Yeah, absolutely, Starlink's growth throughound the world has made it,
Speaker 10: you know, an invaluable resource for you know, regular people
Speaker 10: myself and others who just need high speed internet. But
Speaker 10: it's also because of how easy it is to use
Speaker 10: and its widespread availability has you know, fallen into the
Speaker 10: hands of you know, in war torn regions where there's
Speaker 10: no operations agreement between the company Starlink and the government there,
Speaker 10: and also in places where that are under US sanctions,
Speaker 10: such as Venezuela and other nations.
Speaker 3: Eric, I want to point out to our audience that
Speaker 3: SpaceX did not respond to our requests for comment on
Speaker 3: the story, and of course they were invited to comment
Speaker 3: and to discuss it. They did say back in February
Speaker 3: that were they to obtain any knowledge that a Starlink
Speaker 3: terminal was being used by a sanctioned or unauthorized party,
Speaker 3: that they'd investigate the claim and then take actions to
Speaker 3: deactivate that terminal. In our reporting, do we have a
Speaker 3: sense of how pervasive this is, the scale which the
Speaker 3: illegal use is happening from a numbers perspective, or is
Speaker 3: it limited to specific case studies in those countries.
Speaker 10: I mean, that was one of the most fascinating revelations
Speaker 10: for us, is just how widespread this is. I mean,
Speaker 10: it's being used all around the world, and you know,
Speaker 10: Starlink and SpaceX and Musk, you know, have said at
Speaker 10: various times that they, you know, will when a case
Speaker 10: is brought to their attention, they will investigate it and
Speaker 10: if confirmed, they will shut down. They can you know,
Speaker 10: we've talked to experts who said they can use geolocating
Speaker 10: you know, whenever one of these terminals is activated, they
Speaker 10: can literally see it and so they in theory could
Speaker 10: turn it off. It raises questions about, you know, how
Speaker 10: effective they are at this where you know, Musk is
Speaker 10: this mercurial figure. His allegiances are hard to ascertain, and
Speaker 10: certainly it raises questions about what who has the power
Speaker 10: to do this and what authorities are going to get involved,
Speaker 10: whether that's the US government, whether that's local authorities on
Speaker 10: the ground in these places such as Yemen, Sudan, Venezuela.
Speaker 10: You know, there's been unconfirmed reports of soldiers in Russia
Speaker 10: using it, which of course is under US sanctions. So
Speaker 10: to your point, this is a widespread problem and it
Speaker 10: makes starlink into this geopolitical wildcard that with very uncertain
Speaker 10: use around the world.
Speaker 3: But it's also becoming an increasingly important part of the
Speaker 3: SpaceX business model.
Speaker 6: Right.
Speaker 3: I've done some reporting which you've edited over the last
Speaker 3: year or so about the growth of the starlink business,
Speaker 3: just outline its goals and where the growth kind of
Speaker 3: lays right now to space space or satellite constellation based into.
Speaker 10: That, Starlink is absolutely vital to Elon Musk's business plan.
Speaker 10: It's going to be a huge percentage of space Axis revenue.
Speaker 10: Musk has said that the launch business itself has capped,
Speaker 10: but he envisioned Starlink could be a thirty billion dollar
Speaker 10: a year business. The point of it initially was to
Speaker 10: have sort of financial underpinnings and growth to help Musk
Speaker 10: achieve his lifelong dream of getting the Mars with the
Speaker 10: Starship Rocket or a crucial funding source for the company,
Speaker 10: and its growth has mirrored that.
Speaker 3: Bloomberg's Eric Johnson, our Space editor, thank you so much.
Speaker 4: For sharing with us the Bloomberg Big Take.
Speaker 3: Let's get back to the breaking news that we've been
Speaker 3: covering all morning. We want to head now out to
Speaker 3: Washington for the latest update on the search and rescue
Speaker 3: mission that's underway in Baltimore after the Francis Scott key
Speaker 3: Bridge collapsed earlier this morning after a cargo shit struck.
Speaker 3: What is a major transportation route. You're looking at live
Speaker 3: pitches of the Francis Scott key Bridge, and you're looking
Speaker 3: at live pictures of that vessel registered in Singapore. Bloomberg's
Speaker 3: Wendy Benjaminson joins us from DC. What do we know
Speaker 3: of the search and rescue mission and the US government response?
Speaker 4: Wendy, Well, we do know.
Speaker 11: Here in Washington that President Biden has been briefed on
Speaker 11: this and that he is expected to speak in this
Speaker 11: hour about the rescue efforts and the federal resources that
Speaker 11: the White House says they are sending to Baltimore and
Speaker 11: to Maryland to try to help get this port open
Speaker 11: again and find any people that might be stuck in
Speaker 11: the water or elsewhere. Transportation Secretary Pete Buda Judge, I believe,
Speaker 11: is going to also come to the area to inspect
Speaker 11: and see what's going on. But this is, as you say,
Speaker 11: just a major disruption, even if, thank goodness, there seems
Speaker 11: to be a small loss of life.
Speaker 3: Yeah, and our thoughts are with those impacted. I know
Speaker 3: that the search and rescue effort is underway. Maryland's governors
Speaker 3: seem to suggest earlier in media interviews that this was
Speaker 3: an accident, But this is an important paw in the context,
Speaker 3: particularly of the automotive industry. Is there any sense of
Speaker 3: the impact how long this will be disruptive?
Speaker 11: Well, there are estimates out there that it could last months,
Speaker 11: which seems to make sense if you see from those
Speaker 11: videos this was a massive bridge that just broke apart
Speaker 11: into the Chesapeake Bay there there. It is going to
Speaker 11: be a tremendous impact. There are twenty one ships already
Speaker 11: waiting on the inland side of that bridge that were
Speaker 11: waiting to go out. There are distribution warehouses on the
Speaker 11: north end of that bridge for companies such as Amazon, FedEx,
Speaker 11: under Armour Home Depot, I mean, major companies that people
Speaker 11: order things from and need to get out. Also, trucks
Speaker 11: used that bridge if they were carrying any hazardous cargo whatsoever,
Speaker 11: because they can't go in the tunnel that exists under
Speaker 11: that bay that you're seeing there. So there are those trucks.
Speaker 11: I don't know if they're going to have to let
Speaker 11: them and get them through the tunnel, which risks obviously
Speaker 11: further accidents. So this is going to take months, you know,
Speaker 11: certainly days just even to sort out the scope of
Speaker 11: the problem.
Speaker 3: And we continue to bring you those live pictures and
Speaker 3: the key updates from the Francis Scott Key Bridge which
Speaker 3: collapsed earlier this morning. Bloombergs Wenny Benjaminson thank you for
Speaker 3: your reporting. Sunshine, a startup that helps users automate mundane tasks,
Speaker 3: launching a new AI products called Shine. The product includes
Speaker 3: two complimentary features for users, a photo sharing app and
Speaker 3: an events website that can be used together or individually.
Speaker 3: CEO and co founder Marissa Mayer joins us now with
Speaker 3: the details and that there is an AI story here
Speaker 3: that the platform when technology is able to tell a
Speaker 3: user this photo is shareworthy. But how does an AI
Speaker 3: know what is or what is not share worthy in
Speaker 3: terms of a photo that I might post.
Speaker 12: Well, as you know, the current state of AI is
Speaker 12: really very useful and very advanced, and so we can
Speaker 12: look at your photos. We can look at things like
Speaker 12: where they were taken, when they were taken, who you
Speaker 12: were with, or who's in the photos, what's in the photos,
Speaker 12: how many times did you take that photo? And now
Speaker 12: all of those signals tell us when you might want
Speaker 12: to share it with someone else.
Speaker 3: Merriscy, you've been in the technology industry a long time
Speaker 3: and you've built companies. Did you decide to build the
Speaker 3: underlying model for this yourselves or did you work with
Speaker 3: a third party using either LLMS or other machine learning
Speaker 3: technology from a partner.
Speaker 12: We do use some of our own technology, but we
Speaker 12: also rely on incredible API is provided by some of
Speaker 12: the large players in the space.
Speaker 3: What I find interesting about Shine is who the target
Speaker 3: audience is. You know, we talk a lot on this
Speaker 3: program Bloomberg Technology about the creator environment creator industry, is
Speaker 3: that who principally you have in mind or are you
Speaker 3: targeting a much broader audience of user who may just
Speaker 3: want to share photos with family or friends or whatever
Speaker 3: it may be.
Speaker 12: Well, the reality is that photo sharing is really broken,
Speaker 12: and it's broken for everyone. It's broken for creators and
Speaker 12: all consumers. And so we really are focused on how
Speaker 12: do we help people remember to share the photo, remember
Speaker 12: to get the photo, and just make it easier to
Speaker 12: do that.
Speaker 9: And then and also we are.
Speaker 12: Working out with people who throw events and put things
Speaker 12: together in terms of organizing parties, trips, etc. And so
Speaker 12: our Shine dot Sunshine dot com allows you to do invited,
Speaker 12: more formal events. But the app Shine works for everything
Speaker 12: road trips, parties to simple hangouts.
Speaker 3: That brings us to the event portion of this that
Speaker 3: we spoke about in the intro.
Speaker 4: So I have the ability to.
Speaker 3: Run my photos through the AI and it will tell
Speaker 3: me what I want to share. Now, explain the event
Speaker 3: portion to me and how they work hand in hand.
Speaker 12: Sure, well, the photos portion posentially assaunsembles albums, and those
Speaker 12: albums are based around events. They might be informal events
Speaker 12: but they can also be formal events because we know
Speaker 12: that some of the most important photos for people are
Speaker 12: taken at formal events weddings, parties, conferences, and so our
Speaker 12: website offers that kind of event organization, so it allows
Speaker 12: you to create stunning invitations.
Speaker 9: We use Generator of AI to do this.
Speaker 12: We have fast and fluid communications, so RSVPs as well
Speaker 12: as updates and messaging between host.
Speaker 9: And guests is easy.
Speaker 12: And the way of these works together is that the
Speaker 12: photo sharing is built in from the beginning. And what
Speaker 12: that means is once you've RSVP do an event, you're
Speaker 12: already joined that shared album.
Speaker 9: So if you have the Chine app, it's very easy.
Speaker 12: For you to contribute your photos to the event as
Speaker 12: well as get votas from other attendees.
Speaker 3: Marissa, you are building an AI company and launching an
Speaker 3: AI product at a time where we're just micro focused
Speaker 3: on AI as an industry. In November, you were very
Speaker 3: open and very critical about what happened with Open AI
Speaker 3: and that the then structure of the board on social
Speaker 3: media for example. This is the first chance we've had
Speaker 3: to talk since then. What's your assessment as a longstanding
Speaker 3: member of the Technology industry. Of the resolution, Open AI
Speaker 3: reached the makeup of its board.
Speaker 4: It's promised to grow the board.
Speaker 9: I think that overall it's been a great step forward.
Speaker 12: I think I became very concerned just about the overall
Speaker 12: governance model, and because this is a fast moving in
Speaker 12: the industry and there are so many people very focused
Speaker 12: on and I think it's really.
Speaker 9: Important that the major players are governed well. But I
Speaker 9: think that the new board that they've assembled is.
Speaker 12: Excellent, and I think that there seems to be very
Speaker 12: promising in terms of direction it's going.
Speaker 3: There were reports at the time, Marissa, that you had
Speaker 3: been approached or sounded out to be a member of
Speaker 3: Open ayes board. Was that the case and it would
Speaker 3: you be interested in in joining that board.
Speaker 12: I've already served on a few boards that I'm very
Speaker 12: excited about Walmart and AT and T, and you know,
Speaker 12: in my day to day I'm very focused on Shine,
Speaker 12: So I'm obviously very interested in AI.
Speaker 9: But nothing to report it there.
Speaker 3: Sunshine co founder and CEO Marissa Mayer talking to us
Speaker 3: about Shine, were grateful for your time on the program.
Speaker 4: Thank you.
Speaker 3: Florida Governor Ron De Santis has signed a law that
Speaker 3: will keep kids under fourteen off of social media and
Speaker 3: require parental permission for those up to age sixteen. The law,
Speaker 3: which will take effect January first, overhauls an earlier proposal
Speaker 3: that would have prohibited youth under sixteen from holding social
Speaker 3: media accounts ful Stop, a measure DeSantis vetoed, saying it
Speaker 3: wouldn't give parents enough control over decisions about their children. Okay,
Speaker 3: you'll probably know who Dwayne the Rock Johnson is, but
Speaker 3: do you know about the woman behind his popular brands,
Speaker 3: including the likes of Terre Manna Zoa energy production company,
Speaker 3: seven Bucks Productions many more so. She also played a
Speaker 3: key role in the merger between XFL and USFL that
Speaker 3: resulted in Professional American Football minor league backed by Redbird
Speaker 3: and Fox UFL to become the first female sports league owner.
Speaker 3: Delighted to say that joining us now is the woman
Speaker 3: behind it all, Danny Garcia, chairwoman of the Garcia Companies.
Speaker 3: It's an interesting way to introduce someone. I actually would
Speaker 3: ask that you introduce yourself. Tell me who is Danny Garcia?
Speaker 3: To those that don't.
Speaker 13: Know you, Oh my goodness, I don't know ed you
Speaker 13: covered it so well, I would say, Danny Garcia chairwoman
Speaker 13: of the Garcia companies, and I am fortunate enough to
Speaker 13: be an entrepreneur, a CEO, a founder, a co owner
Speaker 13: of an incredible sports league. And I think the overarching
Speaker 13: thing is I consider myself an athlete of life, which
Speaker 13: allows me to go to many, many different places and
Speaker 13: do many things very powerfully.
Speaker 3: One of the reasons that I wanted to use to
Speaker 3: come on the program is, you know, we are familiar
Speaker 3: with Dwayne the Rock Johnson.
Speaker 4: You know I've covered WWE.
Speaker 3: We know him as a movie star, but actually increasingly
Speaker 3: people become familiar with him through his use of social media.
Speaker 3: And actually, you know, my knowledge of Terere Manna for example,
Speaker 3: or the skincare range that he now has is because
Speaker 3: he's very active on social media. What role do you
Speaker 3: play in that strategy in making sure that each of
Speaker 3: the companies are out there on the socials.
Speaker 13: Well, you know, the first of all, Dwayne and social
Speaker 13: media are synonymous. My role is I oversee how the
Speaker 13: brands are showing up and how they're connecting with the consumers,
Speaker 13: how they're connecting with the audience, and how they're connecting
Speaker 13: and truly reflecting the East thoughs of who DJ is
Speaker 13: social media is always one of our important media outlets.
Speaker 13: Dwayne is very involved and very direct on how he
Speaker 13: shows up and what that tone is, and I make
Speaker 13: sure that it's aligned to the companies and also aligned
Speaker 13: to all of the other companies in the portfolio, so
Speaker 13: there's lots of interconnectivity. My goal is to make sure
Speaker 13: that the strategy is working and it's holistic.
Speaker 3: Would it be fair to say that that Dwayne would
Speaker 3: not have had the success he's had and you would
Speaker 3: not have had the success you had without social media.
Speaker 13: I would say it's very very fairer. I mean Dwayne's
Speaker 13: affinity to org social media right at the beginning of
Speaker 13: its you know, rather than the initial parts where he
Speaker 13: really really doubled down, allowed him to reach a global
Speaker 13: audience and speak to them directly. So he is a
Speaker 13: very transparent relationship and that's why his accounts continue to
Speaker 13: grow and grow and grow. But it absolutely has had
Speaker 13: a massive impact on reach and most importantly on connectivity.
Speaker 3: Danny, you are the first female sports league owner, and
Speaker 3: I wanted to spend some time on that. I guess
Speaker 3: that if you look at XFL in USFL, that marriage
Speaker 3: wouldn't have happened if everything was completely rosy. You know,
Speaker 3: there must have been some underlying issues. Just give me
Speaker 3: the backstory. Sure of how that came about in your role?
Speaker 13: Oh no, absolutely, Well, you know, I think it's such
Speaker 13: a when people we'll ask about that. If you're starting
Speaker 13: a spring league, you wanted to look and say, Okay,
Speaker 13: where are leverage points? How can I accelerate what I'm doing?
Speaker 13: And the XFL which we launched, obviously, we had our
Speaker 13: our first season last year the USFL was having their
Speaker 13: second season. We met all our markers. We were very
Speaker 13: very successful and happy with our reach and our engagement,
Speaker 13: the way our athletes were playing, and simultaneously the USFL
Speaker 13: was making great grounds, right this is their second time out.
Speaker 13: But our interests and the ability to say, okay, what
Speaker 13: happens when we leverage these powerhouses of ownership, because we're
Speaker 13: talking Fox, Disney, ESPN, myself, Duane Johnson, Redbird Capital, all
Speaker 13: of a sudden became very clear we could do so
Speaker 13: much more.
Speaker 3: Danny, this is Bloomberg technology, and so we go straight
Speaker 3: to the streaming part of this business.
Speaker 4: Yeah, you know, there's a.
Speaker 3: Traditional broadcast component, but I wonder of which you're most excited.
Speaker 13: As far as oh for all of you know which
Speaker 13: portion of our our.
Speaker 3: Growing you know, growing an audience distribution. You know it's
Speaker 3: going to be an interesting experiment.
Speaker 13: Well, absolutely, so I'm excited. Well, I would have to
Speaker 13: stay if you look back obviously at our history. I'm
Speaker 13: very excited about how the UFL not only with our
Speaker 13: traditional broadcast partners, which is fantastic, but how we're embracing
Speaker 13: it and bringing our content and creating content specifically for
Speaker 13: a digital platform, whether it's social media through YouTube, et cetera.
Speaker 13: Allows us to really deeply connect with our audience, listen
Speaker 13: to them, engage, and be very very innovative and nimble.
Speaker 1: There.
Speaker 13: We do a tremendous amount of our storytelling at that
Speaker 13: that's where we get very very granular, and that helps
Speaker 13: us to grow our audience in our new markets.
Speaker 1: So it's very important.
Speaker 4: Dannie, what's next?
Speaker 3: How much capital do you have to play with to
Speaker 3: go into a new industry? You know, I won't list them,
Speaker 3: we don't have time, but alcohol, sol and Stroll, you know, skincare,
Speaker 3: sports production. What is the next frontier that you want
Speaker 3: to move into?
Speaker 13: Well, you know what, I continue to be really and
Speaker 13: I'll speak for myself personally, continue to be extremely focused
Speaker 13: and excited about sports. I'm excited about sports in general,
Speaker 13: women's sports in general. There is something that I'm doing
Speaker 13: quite a bit of research on and see myself leaning
Speaker 13: heavily in that area.
Speaker 3: Okay, tell me about the company. At least give me
Speaker 3: a sense of what industry the company is in.
Speaker 13: Well, which industry the company will be in. Well know
Speaker 13: the company is going to be in sports. The industry
Speaker 13: is going to be sports. Do you know I get
Speaker 13: particular like which sports because I won't share that just yet,
Speaker 13: but I would give you this example, the three sixty
Speaker 13: approach that we have brought to the to the UFL,
Speaker 13: the way we're approaching that would be a blueprint to
Speaker 13: how I look at my other investments that will happen
Speaker 13: in sports. In addition, we'll continue to grow seven Bucks
Speaker 13: production and expand that media and our distribution ability there,
Speaker 13: and that's extremely exciting. So I would say the emphasis
Speaker 13: you would see entertainment sports. That really feels where I'm
Speaker 13: looking for.
Speaker 3: The Garcia Company CEO, Danny Garcia, thank you for being
Speaker 3: so generous with your time on the show. A pretty
Speaker 3: wide ranging conversation. Good to have you on that does it.
Speaker 3: For this edition of Bloomberg Technology, we are two days
Speaker 3: into a very busy week.
Speaker 4: There is a lot happening in the newsflow.
Speaker 3: Recap everything that we've discussed on the podcast. So many
Speaker 3: of you do listen to the show in podcast format
Speaker 3: wherever you like to stream, Apple, Spotify, iHeart, and of
Speaker 3: course we're publishing the podcast all the Bloomberg platforms as well,
Speaker 3: and again, whether it's on LinkedIn or on x or
Speaker 3: on Instagram, really appreciate all the feedback that you're giving
Speaker 3: to us in real time, continuing to monitor what's happening
Speaker 3: in Baltimore, continuing to look at the markets, and as
Speaker 3: always we are focused on what's happening here in San Francisco,
Speaker 3: New York and beyond in the world of technology g
Speaker 3: This is Bloomberg Technology
Speaker 13: M HM.