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Speaker 1: Bloomberg Audio Studios, podcasts, radio news from Mahard.

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Speaker 2: We're Innovation of Money and power Collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 3: Live from New York and San Francisco. This is Bloomberg

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Speaker 3: Technology Coming up. Tech leads us lower as we end

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Speaker 3: the week in the red. All eyes on in video

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Speaker 3: earnings as the Trump trade it fades plus.

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Speaker 4: Ali Barber reports solid growth in international and cloud units,

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Speaker 4: offsetting week sales in its China e commerce.

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Speaker 3: Business, and SpaceX gets ready to launch a tender offer

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Speaker 3: in December, which would value it at more than two

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Speaker 3: hundred and fifty billion dollars according to reports. But first

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Speaker 3: from private markets to public markets. We're having a pretty

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Speaker 3: lower end to the week. Look, the risk off focus

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Speaker 3: has come. Whether it's Trump Trade, the euphoria dying, or

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Speaker 3: whether it's Federal reserve. Reality is we cut our bets

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Speaker 3: for a FED rate cut in December to as low

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Speaker 3: as a fifty percent chance. Now we're off by three percent.

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Speaker 3: This is the worst week since the beginning of September

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Speaker 3: for the NASDAC. Just bear that in mind. Four straight

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Speaker 3: days of losses. We thank one of our producers for

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Speaker 3: that particular key fat. That is the worst set of

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Speaker 3: losses that we've seen going back to April. On a

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Speaker 3: back to back basis. We're looking at bitcoin though managers

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Speaker 3: to continue to power higher on the week but not

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Speaker 3: on the day.

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Speaker 5: Bitcoin up some fifteen percent.

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Speaker 3: It's a seven day version of this end because trades

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Speaker 3: over the weekend.

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Speaker 5: What are you looking at on a micro basis, Yeah, I.

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Speaker 4: Think part of the reason that the overall euphoria's faded

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Speaker 4: post election is the hearing now is about technology earnings.

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Speaker 4: Applied Materials is the biggest US maker of chip making equipment.

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Speaker 4: It's like the US version of ASML. It's given us

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Speaker 4: a week outlook. We're going to dig into that later

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Speaker 4: in the show. Bloombergsin and King. Clearly the stock is

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Speaker 4: down a lot. Then you have Ali Barber. These are

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Speaker 4: the US listed shares or ADRs, and we kind.

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Speaker 6: Of summer it at the top.

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Speaker 4: They're seeing really weak or anemic growth in e commerce

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Speaker 4: in China, which is their domestic core business, even if

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Speaker 4: they're doing well in other areas. Again, we will dig

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Speaker 4: into that a little bit more in just a moment,

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Speaker 4: but don't forget earnings is a story from here. Are

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Speaker 4: in because the big one next week in Vidia. All

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Speaker 4: relevant and we'll get to it later in the program.

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Speaker 3: Karen re member the twentieth after the market, All eyes

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Speaker 3: on Nvidia, all eyes on what's moving the markets right here,

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Speaker 3: right now. Bloomberg of course as well. Lee is over

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Speaker 3: in Boston today. Just tell us what you're looking at

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Speaker 3: in the market.

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Speaker 7: I'm looking at tech and it's really interesting because it's

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Speaker 7: a weight and see for all these tech companies, they're

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Speaker 7: really struggling to parse out what a second Trump administration will.

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Speaker 5: We'll do it.

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Speaker 7: It doesn't help the Trump personally. This likes meta and alphabet.

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Speaker 7: And if you look at the stocks, they're reflecting that.

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Speaker 7: While we have Tesla up at about twenty percent for

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Speaker 7: a good reason, which is Elon Musk, the rest are

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Speaker 7: really trading flat. And then as that, as you pointed out,

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Speaker 7: is down for a four straight day, so that's really

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Speaker 7: a really long stretch of losing streak. If you want

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Speaker 7: to see the where we're seeing action, of course, it's Bitcoin.

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Speaker 7: It's up thirty percent ever since Trump has declared victory.

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Speaker 7: And we're looking actually at the sailor buffet ratio so

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Speaker 7: as we know, Warren Buffett's Berkshire Hasaway is an established company,

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Speaker 7: it tracks more in names so to speak, and micro

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Speaker 7: Strategy tracks Bitcoin well. That ratio, which measures the relative

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Speaker 7: stock performance of both so its highest level since two

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Speaker 7: thousand and it's not really a surprise because micro Strategy

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Speaker 7: is up over four hundred percent while Berkshire Hathaway is

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Speaker 7: up just around thirty one percent. And for more conviction,

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Speaker 7: we saw six billion flowing through crypto funds. That's a record, Caroline,

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Speaker 7: So it's really interesting to see the two spaces as

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Speaker 7: this administration plays out.

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Speaker 4: Okay, bloombergs Isabelle Lee, thank you very much. We mentioned

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Speaker 4: it a moment ago, Ali Barber reporting some solid growth

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Speaker 4: in its businesses outside of China international cloud divisions and

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Speaker 4: that kind of helped set some of the drag from

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Speaker 4: an anemic Chinese e commerce business.

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Speaker 6: Going back to.

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Speaker 4: Henry Wren out of London's been tracking this print and

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Speaker 4: that sums up the story.

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Speaker 6: But what's going on, particularly.

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Speaker 4: In mainland China with the Chinese consumer that has at

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Speaker 4: least the US listed shares moving downwards.

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Speaker 8: And as you said, this is certainly a result that

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Speaker 8: has some good and bad But the bad part is

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Speaker 8: of course the local e commerce business, because this is

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Speaker 8: the two thirds of ali Baba's revenue generation, and what

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Speaker 8: we've been seeing for this quarter is still anemic because

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Speaker 8: the revenue that ali Baba generates from third party merchants

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Speaker 8: that grew only two percent during the quarter, So that's

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Speaker 8: not a sort of rebound that investors have been hoping for.

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Speaker 8: And a direct cell from Ali Baba's platform also stuck

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Speaker 8: in the decline as well. That really shows that consumer

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Speaker 8: sentiment in China is still weak, although this morning that

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Speaker 8: we have some more positive retail sales state data in

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Speaker 8: October showing that the retail sales actually expanded by four

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Speaker 8: point eight percent, which is the fastest pace in eight months. However,

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Speaker 8: we have to take in an account that these results

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Speaker 8: came between June and September, and during that period we

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Speaker 8: can say that the consumer sentiment.

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Speaker 6: Is really not on amend just yet.

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Speaker 3: International growth, how resilient is that going to be in

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Speaker 3: the face of geopolitical headwinds, most dominantly here in the

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Speaker 3: United States we're anticipating in new administration which isn't very

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Speaker 3: China friendly.

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Speaker 8: Yeah, So, as we discussed the domestic e commerce business

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Speaker 8: has been weak for quarters and quarters, so they have

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Speaker 8: to find a new growth engine. It used to be Cloud,

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Speaker 8: but Cloud that growth engine has been sputtering for several

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Speaker 8: quarters in a row. Now it has showed some signs

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Speaker 8: of recovery, but still a long way to go. So

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Speaker 8: another way to expand is through overseas business. What we

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Speaker 8: see from pdd door as well, which we've been seeing

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Speaker 8: from team.

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Speaker 6: Explosive growth in the US.

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Speaker 8: For Ali Baba, the focus has been in other Asian markets.

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Speaker 8: We're talking about Malaysia, Indonesia, those markets, and they've been

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Speaker 8: doing quite well, although we would have to point out

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Speaker 8: that Ali Baba is still burning.

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Speaker 6: Cash in those markets.

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Speaker 8: What we've been seeing in the past quarter is they

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Speaker 8: are narrowing losses and we see the margins has been improving,

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Speaker 8: although it's still some distance away from break even.

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Speaker 3: Henry Wren has been across all of these Chinese e

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Speaker 3: commerce players.

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Speaker 5: We thank you.

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Speaker 3: Now and we're going to turn our attention a minute

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Speaker 3: to SpaceX. It's preparing a tender offer in December. The

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Speaker 3: two hundred and fifty billion dollar valuation. We're going to

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Speaker 3: get to those reports. That's next.

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Speaker 5: This is bloe Meg.

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Speaker 4: Technology SpaceX is preparing to launch a tender offer in

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Speaker 4: December that will sell existing shares in the business at

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Speaker 4: about one hundred and thirty five dollars each. That's according

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Speaker 4: to a report in the Financial Times, where they cited sources.

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Speaker 4: Bloomberg's Bris ein Horn is here with us and Bruce

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Speaker 4: just for a Bloomberg technology audience. The basics a tender

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Speaker 4: is where employees or some early investors sell shares. There's

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Speaker 4: no new capital raise. The main point, I think is

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Speaker 4: a valuation of two hundred and fifty billion dollars or

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Speaker 4: more is quite eye watering. Put SpaceX up there. What

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Speaker 4: else do we know?

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Speaker 9: That's right?

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Speaker 10: And so typically SpaceX does these offerings twice a year.

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Speaker 10: The previous valuation, which was in mid year, was around

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Speaker 10: two hundred and ten billion dollars, So two hundred and

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Speaker 10: fifty billion dollars of course a big jump up. It

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Speaker 10: would be a record for a US company. It's not

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Speaker 10: a record for a startup. The record for a startup

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Speaker 10: is two hundred and sixty eight billion dollars for Byte

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Speaker 10: downs to the Chinese parent of TikTok. Just to give

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Speaker 10: you a sense of just how much SpaceX's valuation has increased.

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Speaker 10: A year ago, when there was a similar offer, the

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Speaker 10: valuation was one hundred and eighty billion dollars.

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Speaker 3: It feels for some as though the valuation goes higher,

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Speaker 3: maybe it gets a Trump Elon Musk bump. Maybe everyone's

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Speaker 3: just trying to plow in money to associate themselves with

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Speaker 3: the success of Elon Musk and the considerable perhaps ease

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Speaker 3: with which he'll get better regulatory approvals when he's associated

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Speaker 3: with the next administration. Is that something you eyeing, Bruce, certainly,

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Speaker 3: gwinnshot while the president of SpaceX is talking about that

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Speaker 3: very thing this morning.

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Speaker 10: It's a good point that, of course Elon Musk does

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Speaker 10: have the ear of President elect Trump. That said, though

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Speaker 10: this is a lot more than just a politics story.

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Speaker 10: Starlink has more than six thousand satellites in operation. Gwinshot

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Speaker 10: well this morning, speaking at a conference in New York,

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Speaker 10: said that the company has launched more than seven thousand satellites.

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Speaker 10: This puts Starlink far ahead of any competitor. So they

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Speaker 10: are really the dominant player for now, at least in

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Speaker 10: lower th orbit. The satellite communication, which the valuation partly reflects.

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Speaker 4: You know, Bruce, the focus on SpaceX is about reusability.

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Speaker 4: The Falcon generation of rocket can go up and then

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Speaker 4: come back down and be used again. But our attention

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Speaker 4: is going to turn to Starship. What did Shotwell say

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Speaker 4: about Starship? And I guess should the audience be looking

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Speaker 4: out to see another test anytime soon?

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Speaker 10: Yes, so there will be another test soon. This morning

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Speaker 10: Gwinschotwell said that we should expect that on Tuesday next week.

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Speaker 10: This would be the latest test of Starship. Starship is

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Speaker 10: just a level, a whole other level bigger than anything

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Speaker 10: that's existed up until now. And in her comments this morning,

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Speaker 10: she also did say that the company expects to launch

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Speaker 10: direct to sell service sometime before the end of the year,

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Speaker 10: sometime in the next month or so. That would also

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Speaker 10: put SpaceX out front in another business that's really just

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Speaker 10: getting started, offering satellite based communication that could go directly

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Speaker 10: to cell phones without having to have any sort of

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Speaker 10: satellite dish or any other type of equipment.

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Speaker 3: More than four hundred Starship launches are possible in the

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Speaker 3: next four years, according to Quench Shutwell, extraordinary numbers on

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Speaker 3: both evaluation and the amount of launches. Briseiinhorn, we thank

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Speaker 3: you Meanwhile, let's talk about Elon Masqu's Tesla seeing a

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Speaker 3: big reaction alongside other EV makers.

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Speaker 5: Today we get a reprieve. It was yesterday that a.

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Speaker 3: Report hit from Reuter's saying that Donald Trump and his

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Speaker 3: administration is set to end some seven and a half

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Speaker 3: thousand dollars EV tax credits that are currently out there.

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Speaker 3: Joining us is Terry o Day, in charge Energy COO Terry.

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Speaker 3: So the point here is that when you buy an

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Speaker 3: EV you can get a nice, juicy tax credits seven

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Speaker 3: and a half thousand dollars and that would be wiped

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Speaker 3: out potentially by the next administration.

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Speaker 5: How important, How integral is that tax credit to demand?

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Speaker 11: Well, it's not clear yet, but we do know that

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Speaker 11: it is important. It's very valuable to the industry, and

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Speaker 11: it's important because of both consumers relying on it and

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Speaker 11: manufacturers relying on it. So it's really about EV jobs

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Speaker 11: when it comes down to it. And the current incentive

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Speaker 11: is only available to American made vehicles, So what we're

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Speaker 11: really talking about is manufacturing in the US, and that's

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Speaker 11: why this comes as a bit of a surprise. And

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Speaker 11: the last time this personal tax credit was challenged, it

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Speaker 11: had a lot of support in Congress from states that

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Speaker 11: are manufacturing the components for electric vehicles, like states like

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Speaker 11: Tennessee and South Carolina and Michigan and Illinois. They wanted

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Speaker 11: to protect jobs and that's why they protected this tax

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Speaker 11: credit last time. So we'll see how this proposal goes

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Speaker 11: in Congress.

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Speaker 3: Many of those states, not blue states per se, potentially

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Speaker 3: read and therefore affecting home territory to certain extent for

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Speaker 3: your business, when you think about the infrastructure play of this,

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Speaker 3: does this set back the adoption.

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Speaker 5: Of evs in the longer term?

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Speaker 3: Do you think I know it's hypothesis here, but does

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Speaker 3: that make you think about readjusting your strategy?

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Speaker 12: It definitely has that potential.

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Speaker 11: I mean, for our business, we rely on demand from

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Speaker 11: consumers and from businesses, so this is a personal task

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Speaker 11: credit for individuals. There are other incentives in the industry

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Speaker 11: that are definitely on the shopping block from this administration.

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Speaker 11: So there's an important fight to protect a lot of

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Speaker 11: those incentives.

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Speaker 4: Now, Terry, you said this is a surprise, is it really?

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Speaker 4: Elon Musk has been talking about scrapping subsidies for years.

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Speaker 6: He has been close to.

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Speaker 4: Trump throughout the election process and now in an advisory

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Speaker 4: role because those will out act outside of government.

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Speaker 6: He will have Trump's here.

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Speaker 4: But also we had decelerating EV sales growth anyway for

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Speaker 4: the latter part of biden'sministration. Why is it a surprise to.

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Speaker 11: You, Well, I think decelerating sales growth was going to

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Speaker 11: happen anyway, right, because when you're growing year over year

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Speaker 11: double digits, you cannot continue that forever, just the law

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Speaker 11: numbers doesn't allow it. So deceleration was going to happen.

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Speaker 11: But this incentive has broad support, as I was saying,

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Speaker 11: So that's why it comes as a bit of a surprise.

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Speaker 11: And to be saying this so early in the transition

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Speaker 11: is I think also kind of surprising. Look, this is

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Speaker 11: not a significant tax credit and the range of new

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Speaker 11: tax policy we're going to be seeing coming out of

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Speaker 11: this administration, and it favors US manufacturing, which this new

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Speaker 11: administration has been saying is what they really want.

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Speaker 12: So they're looking for manufacturing. This is something that does that.

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Speaker 4: Terry, Don't get me wrong, I've got a Tesla model

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Speaker 4: why I think Carroy I'm right and saying, also has

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Speaker 4: an EV I leased it. It was a competitive lease

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Speaker 4: because of the seventy five hundred dollars tax credit. But

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Speaker 4: big picture, what is it that's going to put electric

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Speaker 4: vehicle sales in North America at least back on a

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Speaker 4: path to accelerating sales growth. What do you want to

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Speaker 4: see proactively the Trump administration do well?

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Speaker 11: The most important thing is that California has the right

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Speaker 11: to regulate tailpipe emissions today, and about a dozen other

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Speaker 11: states have signed.

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Speaker 12: On to that.

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Speaker 11: They have regulations forthcoming that are affecting fleets, So fleets

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Speaker 11: would be required to buy evs when those fleets are

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Speaker 11: larger than fifty vehicles in their fleet, and manufacturers would

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Speaker 11: be required to sell to those fleets, so that dual

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Speaker 11: regulation is in jeopardy. And overall, California's right to regulate

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Speaker 11: tailpipe emissions is what created the EV industry in the

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Speaker 11: first place. We think we can compete on an equal

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Speaker 11: footing with gas and diesel. Today, my customers like PEPSI

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Speaker 11: and FedEx and ups and school districts across the country

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Speaker 11: are already saving money by going to electric because it's

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Speaker 11: cheaper than gas and diesel on a total operating cost.

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Speaker 12: So we think we can compete on an equal putting.

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Speaker 11: But it's important to have these regulations in place to

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Speaker 11: just kind of get over the hump of these pilot

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Speaker 11: programs and enable it.

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Speaker 12: To go to scale.

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Speaker 3: In so saying that terry, it almost makes you think, well,

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Speaker 3: why have them if already you're able to compete. That's

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Speaker 3: sort of therein lies the argument, and going back to

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Speaker 3: the consumer right now, is it that you need to

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Speaker 3: compete by what you do. Many people are reticent to

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Speaker 3: commit fully to an EV. They've been going back to

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Speaker 3: a hybrid model because they're worried about infrastructure and alack thereof.

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Speaker 12: Yeah, and that's the real trick here.

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Speaker 11: I think, you know, committing capital to build out an

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Speaker 11: industry like this is extremely risky. So those regulations provide

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Speaker 11: the guardrails for investment. It attracts private investment and creates jobs.

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Speaker 11: And so that's really what this is about, is not

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Speaker 11: the you know, favoring one industry over another, but really

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Speaker 11: just giving enough certainty to investors that they can put

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Speaker 11: capital into the space to continue to grow that charging infrastructure,

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Speaker 11: to continue to convert their fleets and do the things

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Speaker 11: that we want to do for this space.

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Speaker 4: President Elect Trump's point, i think is not that he's

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Speaker 4: antiev but that he's not fully all in ev he

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Speaker 4: wants choice. Terry O'Day in charge energy. Soah, great to

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Speaker 4: have you on the program.

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Speaker 9: We're just getting started.

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Speaker 13: And the thing I remember about last week is when

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Speaker 13: Donald Trump was in this room, everybody else was celebrating.

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Speaker 13: He was stone cold ready for the next step. But

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Speaker 13: I also want to thank him for making sure that

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Speaker 13: Elon Musk and I own a position to start the

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Speaker 13: mass deportations of millions of unelected federal bureaucrats out of

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Speaker 13: the DC bureaucracy. That too, is how we're going to

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Speaker 13: save this country. And I don't know if you've got

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Speaker 13: to know Elon yet, but he doesn't bring a chisel.

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Speaker 13: He brings a chainsaw, and we're going to be taking

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Speaker 13: it to that bureaucracy.

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Speaker 9: It's gonna be a lot of fun.

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Speaker 3: Entrepreneur Vivek Ramaswami, who has recently chosen by President elect

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Speaker 3: Donald Trump to co lead the new Department of Government

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Speaker 3: Efficiency along with Elon Musk, to cut excess regulation, it says,

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Speaker 3: and expenses. Let's discuss this with Jennifer Pallack Pulker.

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Speaker 5: Sorry, it's a Friday.

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Speaker 3: Jennifer Pulker, Senior Fellow at Niscannon Center and former President

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Speaker 3: Barack Obama's deputy Chief Technology offers a boy, you have

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Speaker 3: got inside knowledge about how easy or hard it is

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Speaker 3: to affect policy change within a civil service that already exists.

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Speaker 3: Look Vivek Ramaswami saying it will be fun to take

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Speaker 3: a chainsaw to it. For many who work there, this

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Speaker 3: won't be fun.

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Speaker 5: But what's the reality.

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Speaker 3: Do you agree that, in principle efficiency needs to be found?

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Speaker 14: I agree that government has to get better at doing

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Speaker 14: what we say we're going to do, and I think

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Speaker 14: our inability to do that has I've created the opening

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Speaker 14: for this DOGE and sort of other initiatives that you

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Speaker 14: see coming out of the Trump White House. Now there's

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Speaker 14: so many questions about this. You have significant confluence of interest,

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Speaker 14: especially for Elon Musk. They have established this thing outside

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Speaker 14: of government, so it's unclear if they really intend to

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Speaker 14: just rely on executive action or really get.

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Speaker 5: Involved with Congress.

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Speaker 14: So there's some questions about the whether they can be effective.

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Speaker 14: But I do think that there is a real problem

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Speaker 14: behind all of this rhetoric that needs to be handled

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Speaker 14: with probably more care than the way that Musk and

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Speaker 14: Ramaswami are talking about it.

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Speaker 3: Jediv I do want to be naive to the fact

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Speaker 3: that people have been probably trying to make government more

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Speaker 3: efficient for a little while.

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Speaker 5: So what is it that hasn't been done? Oh, we

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Speaker 5: at the level now.

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Speaker 3: That this sort of decision not to care, not to

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Speaker 3: be precise, but actually to just go at it with

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Speaker 3: the chainsaw. Just every other Social Security number is out.

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Speaker 3: Is that the place that we've got ourselves to.

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Speaker 14: I don't think it has to be. I think a

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Speaker 14: good analogy might be brush fires. So I live part

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Speaker 14: time in California in a very very high fire risk area,

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Speaker 14: and I was told when we moved there, you know,

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Speaker 14: backwen natives all in the land, there were fifteen trees

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Speaker 14: per acre, sorry, yes, per acre, and now there's fifteen

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Speaker 14: hundred and so the fires now are bigger, and we

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Speaker 14: can do fire management. Now, we've learned a lot, and

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Speaker 14: we can mitigate the worst damage.

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Speaker 5: But when you haven't cleared out.

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Speaker 14: The craft for many years, and I think that is

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Speaker 14: unfortunately what has happened in our government is that we haven't,

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Speaker 14: then we get these conflagrations.

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Speaker 5: That burn out of control.

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Speaker 14: I hope we can stop that, but we are going

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Speaker 14: to have some burning, and some of it will end

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Speaker 14: up being healthy over the long run. It's in a

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Speaker 14: difficult situation to be in, and I think that public

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Speaker 14: servants to Jennifer feel nervous about this, have.

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Speaker 4: A road to be We heard from Vivek Ramaswami in

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Speaker 4: that SoundBite, but I had an exchange with him on

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Speaker 4: x the social media platform yesterday, and as part of

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Speaker 4: that exchange, I flagged the idea that investors are basically

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Speaker 4: selling out of companies that are historically main contractors to

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Speaker 4: the government.

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Speaker 6: For a reason.

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Speaker 4: They think that you know that mister Ramaswami, who calls

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Speaker 4: Uncle Sam not supposed.

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Speaker 6: To be Uncle Sucker. They think he'll be successful. I

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Speaker 6: guess that I would just like you.

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Speaker 4: To outline the reality of doing that, canceling long term contracts,

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Speaker 4: looking at automate vendors, and ultimately reducing headcamp at government

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Speaker 4: agencies based on your experience having worked within it.

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Speaker 5: If we do that, there.

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Speaker 14: Will be damage in all sorts of ways. There's going

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Speaker 14: to be damage to.

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Speaker 5: Our ability to protect our nuclear arsenal.

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Speaker 14: For instance, Michael Lewis writes about this in the fifth Risk.

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Speaker 5: It will chill your bones. We do not want that.

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Speaker 14: On the other hand, we do need some changes, and

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Speaker 14: we need when we do those changes to be thoughtful

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Speaker 14: about preserving the foundations that this country is built on. Now,

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Speaker 14: this isn't a Doge proposal, but if you look at

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Speaker 14: the schedule F proposal, for instance, it's not actually addressing

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Speaker 14: the real problems of being difficult to fire under performers,

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Speaker 14: for instance. It's going at the core principles of a

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Speaker 14: independent civil service that's able to tell the truth, that

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Speaker 14: is hired and fired on the basis of merit. We

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Speaker 14: need real civil service reform, not schedule F.

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Speaker 4: Jennifer Palker, Senior fellow at NISCAN and sent I really

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Speaker 4: appreciate your time here on Bloomberg Technology.

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Speaker 3: Welcome back to Blue Meg Technology. I'm Caroline Hyde in

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Speaker 3: New York and I met.

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Speaker 6: Love Low in San Francisco. What's going on in the market, Scarret,

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Speaker 6: I've risk off.

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Speaker 5: Kind of a day.

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Speaker 3: Look, we're back to fundamentals yourfuria. The highs of the

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Speaker 3: Trump trade just ease a little bit, and we've refocused

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Speaker 3: on the other guy, that is, of course, the head

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Speaker 3: of monetary policy. We think about what Jay Power is

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Speaker 3: saying in in terms of the FED and rate cuts,

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Speaker 3: in the market really pairing back how likely that cut

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Speaker 3: is for December.

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Speaker 5: We're off by almost three percent.

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Speaker 3: You can see the sudden jarring move that we've got

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Speaker 3: on this last day of trade. It is the worst

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Speaker 3: week for the Nasdaq, the main benchmark now's that one

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Speaker 3: hundred at least since going back to the beginning of September.

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Speaker 3: So we have got a sort of a bit of

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Speaker 3: a pain trade to end the week. Move on and

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Speaker 3: have a look at what's happening on the individual movers

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Speaker 3: because we're actually back to fundamentals when it comes to

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Speaker 3: earnings as well. Ed I China, like what's happening with

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Speaker 3: some of the chip makers.

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Speaker 5: Firstly, Tesla is up four percent.

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Speaker 3: It's like the only Magnificent seven company that is on

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Speaker 3: the higher side from the benchmark today it pulls up,

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Speaker 3: but the rest of the Mags seven are pulling down

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Speaker 3: on a points perspective, and really that's a relief rally

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Speaker 3: after yesterday's sell off from the back of that ev news.

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Speaker 3: Applying Materials down eight percent, we're seeing it trade at

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Speaker 3: the lowest level since February of this year. This is

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Speaker 3: a chip equipment maker like asml over in Europe. This

441
00:23:09,200 --> 00:23:12,520
Speaker 3: is the US version, and look, it's signaling that perhaps

442
00:23:12,680 --> 00:23:15,000
Speaker 3: everything in Chipland isn't all that rosy if you strip

443
00:23:15,000 --> 00:23:17,760
Speaker 3: out AI again, we're thinking industrial or thinking autos, and

444
00:23:17,800 --> 00:23:19,879
Speaker 3: we're thinking China. And I'm looking at in video what

445
00:23:19,920 --> 00:23:21,879
Speaker 3: does this reader cross mean for in video? When we

446
00:23:21,920 --> 00:23:25,520
Speaker 3: get its earnings on November the twentieth ed key for

447
00:23:25,520 --> 00:23:27,160
Speaker 3: there were down by two and a half percent. Of course,

448
00:23:27,200 --> 00:23:28,960
Speaker 3: the key points drag on the day. What are you

449
00:23:28,960 --> 00:23:29,840
Speaker 3: looking at?

450
00:23:30,160 --> 00:23:31,600
Speaker 4: Well, let's go back to the chips and do a

451
00:23:31,600 --> 00:23:33,520
Speaker 4: deep dive bloomberg z and King is here with us

452
00:23:33,520 --> 00:23:37,280
Speaker 4: in San Francisco on Applied Materials. It's interesting because part

453
00:23:37,320 --> 00:23:40,280
Speaker 4: of kind of the bigger tech markets discussion is we've

454
00:23:40,320 --> 00:23:41,440
Speaker 4: got over the election.

455
00:23:41,240 --> 00:23:42,800
Speaker 6: Now and earnings are with US.

456
00:23:43,480 --> 00:23:47,479
Speaker 4: Applied Materials is America's biggest chip equipment maker. Was there

457
00:23:47,520 --> 00:23:49,520
Speaker 4: anything in it that was kind of consistent with what

458
00:23:49,520 --> 00:23:53,200
Speaker 4: we've heard from ASML the big themes about AI investment

459
00:23:53,280 --> 00:23:56,359
Speaker 4: and those cutting edge machines or China or anything else.

460
00:23:56,520 --> 00:23:59,240
Speaker 15: Yeah, No, that's one hundred percent consistent with what we've

461
00:23:59,240 --> 00:24:03,399
Speaker 15: heard from others. Spoke with the CEO yesterday after the

462
00:24:03,440 --> 00:24:05,919
Speaker 15: release and he was like, look, everything's Okay, well, you know,

463
00:24:05,960 --> 00:24:08,199
Speaker 15: there's nothing to worry about. The long term picture for

464
00:24:08,240 --> 00:24:11,280
Speaker 15: this industry is fantastic. I'm not going to worry about,

465
00:24:11,400 --> 00:24:13,679
Speaker 15: you know, the odd fluctuation here and there on a

466
00:24:13,760 --> 00:24:18,520
Speaker 15: quarterly basis. Unfortunately for him, investors are because you know,

467
00:24:18,840 --> 00:24:20,840
Speaker 15: you have to be perfect with the amount of money

468
00:24:20,880 --> 00:24:24,119
Speaker 15: that's been put into these stocks, with the expectations that

469
00:24:24,160 --> 00:24:28,879
Speaker 15: exist around AI. Our performance is the only performance.

470
00:24:29,400 --> 00:24:31,720
Speaker 3: Well said, I think a prior to this on the year,

471
00:24:31,760 --> 00:24:33,760
Speaker 3: they had actually been up to the tune of about

472
00:24:33,880 --> 00:24:34,600
Speaker 3: fifteen percent.

473
00:24:34,640 --> 00:24:37,439
Speaker 5: Now were only up about five percent. In the reader

474
00:24:37,480 --> 00:24:39,760
Speaker 5: cross is important because we're all.

475
00:24:39,640 --> 00:24:42,520
Speaker 3: Going to be obsessing about in video next week, and

476
00:24:42,800 --> 00:24:45,040
Speaker 3: this is your main company that you focus on.

477
00:24:45,160 --> 00:24:46,440
Speaker 5: What does it mean for in video?

478
00:24:47,359 --> 00:24:47,600
Speaker 9: Yeah?

479
00:24:47,640 --> 00:24:51,280
Speaker 15: I mean again, the word AIAIAI keeps cropping up over

480
00:24:51,320 --> 00:24:53,920
Speaker 15: and over again. What we've heard with regards to in

481
00:24:54,040 --> 00:24:56,240
Speaker 15: video has been very positive.

482
00:24:56,359 --> 00:24:56,479
Speaker 11: Right.

483
00:24:56,720 --> 00:24:59,000
Speaker 15: The only thing that's going to hold them back will

484
00:24:59,000 --> 00:25:02,639
Speaker 15: be availability of supply. Can they get enough chips to

485
00:25:02,680 --> 00:25:06,440
Speaker 15: meet demand. Everything that we're hearing in terms of the fundamentals,

486
00:25:06,480 --> 00:25:08,280
Speaker 15: in terms of the sell through, in terms of the

487
00:25:08,320 --> 00:25:10,680
Speaker 15: capex's planned is absolutely positive.

488
00:25:11,240 --> 00:25:16,440
Speaker 4: You've reported overnight that TSMC, the world's largest contract manufacturer

489
00:25:16,440 --> 00:25:19,919
Speaker 4: of chips, is finalizing its awards from the US government

490
00:25:19,920 --> 00:25:23,719
Speaker 4: through the Chips Act. What's new and why is that significant?

491
00:25:23,920 --> 00:25:27,000
Speaker 15: Oh, it's now a legally binding contract between the United

492
00:25:27,000 --> 00:25:31,680
Speaker 15: States government and TSMC. So not I won't say there's

493
00:25:31,680 --> 00:25:34,399
Speaker 15: no going back, but it makes going back a lot harder.

494
00:25:35,160 --> 00:25:38,120
Speaker 15: It shows that they've already achieved some of the things

495
00:25:38,119 --> 00:25:39,800
Speaker 15: that they were supposed to do. They're going to get

496
00:25:39,840 --> 00:25:42,760
Speaker 15: a billion dollars of federal money this year, we were

497
00:25:42,760 --> 00:25:46,040
Speaker 15: told yesterday. So in general it's a positive sign. It's

498
00:25:46,359 --> 00:25:50,920
Speaker 15: moving that whole bill forward, obviously ahead of the administration handover.

499
00:25:51,040 --> 00:25:53,879
Speaker 6: Blimbozy and King and all things chips. Thank you very much, Carol.

500
00:25:54,480 --> 00:25:56,800
Speaker 3: Sticking with chips a little bit, it's time for talking

501
00:25:56,880 --> 00:26:00,800
Speaker 3: tech ed and first up shares of Samsung. They'd been

502
00:26:00,920 --> 00:26:03,520
Speaker 3: up in South Korean trade today because the tech giant

503
00:26:03,560 --> 00:26:07,159
Speaker 3: is surprising investors with a mammoth buyback of seven billion

504
00:26:07,200 --> 00:26:09,320
Speaker 3: dollars worth of its own stock over the next year.

505
00:26:09,520 --> 00:26:11,840
Speaker 3: The move comes, of course, the mid investor concerns that

506
00:26:12,640 --> 00:26:15,359
Speaker 3: the growth in the firm's memory chip business has been lackluster,

507
00:26:15,600 --> 00:26:19,359
Speaker 3: Struggling to keep up with rival sk Heinex, for example. Meanwhile,

508
00:26:19,359 --> 00:26:21,879
Speaker 3: Elon Musk was ramping up his feud with Sam Altman.

509
00:26:22,200 --> 00:26:25,199
Speaker 3: In a revised court filing must highlighted and trust concerns

510
00:26:25,200 --> 00:26:27,919
Speaker 3: by OpenAI, alleging that the company is trying to corner

511
00:26:27,960 --> 00:26:30,880
Speaker 3: the Generator AI market and sacrificing safety.

512
00:26:31,240 --> 00:26:33,000
Speaker 5: OpenAI didn't immediately respond to.

513
00:26:33,000 --> 00:26:37,160
Speaker 3: A request for comment, and the Ultimate Fighting Championship will

514
00:26:37,200 --> 00:26:40,000
Speaker 3: be looking for a decade long partnership when it shops

515
00:26:40,000 --> 00:26:42,280
Speaker 3: around its media rights next year. This is all according

516
00:26:42,280 --> 00:26:44,560
Speaker 3: to the company CEO Dana White, who sat down with

517
00:26:44,600 --> 00:26:47,680
Speaker 3: Boomberg TV yesterday. He also spoke about his relationship with

518
00:26:47,680 --> 00:26:48,600
Speaker 3: the President elect Trump.

519
00:26:48,640 --> 00:26:49,200
Speaker 5: Just take a listen.

520
00:26:50,080 --> 00:26:52,640
Speaker 16: He's the one that when we first bought the company

521
00:26:52,880 --> 00:26:57,760
Speaker 16: and venues didn't love the UFC. Back then, he opened

522
00:26:57,840 --> 00:27:00,400
Speaker 16: up the TAJ and New Jersey and said, we did

523
00:27:00,400 --> 00:27:02,800
Speaker 16: our first couple of events there at the TAJ and

524
00:27:03,240 --> 00:27:05,320
Speaker 16: he showed up for the first one and stayed till

525
00:27:05,320 --> 00:27:07,080
Speaker 16: the last fight. That was when he became a fan.

526
00:27:07,200 --> 00:27:08,880
Speaker 12: I know you've been friends with him for a long time.

527
00:27:08,920 --> 00:27:11,320
Speaker 12: Any plans to actually work for him in his new administration.

528
00:27:11,440 --> 00:27:13,200
Speaker 16: I want nothing to do with politics.

529
00:27:13,400 --> 00:27:14,440
Speaker 9: No I do not I know.

530
00:27:16,280 --> 00:27:20,400
Speaker 4: Let's stay in the realm of fighting and competitive sports.

531
00:27:20,480 --> 00:27:23,840
Speaker 4: Netflix shares actually down two percent. Remember tonight is the

532
00:27:23,880 --> 00:27:27,520
Speaker 4: big fight. It is streamed exclusively on Netflix. Jake Paul

533
00:27:27,640 --> 00:27:30,399
Speaker 4: versus Mike Tyson. Don't know about you, Carrot. It's been

534
00:27:30,440 --> 00:27:34,280
Speaker 4: all over my social media feeds and it's an interesting

535
00:27:34,320 --> 00:27:37,320
Speaker 4: moment for Netflix whether they can pull off There he

536
00:27:37,400 --> 00:27:40,160
Speaker 4: is and there he Is. We'll be tuning in one

537
00:27:40,240 --> 00:27:42,320
Speaker 4: to watch. You can discuss it on the show on Monday.

538
00:27:42,640 --> 00:27:45,399
Speaker 4: Coming up on this edition of Bloombog Technology. Business leaders

539
00:27:45,400 --> 00:27:48,679
Speaker 4: from around the world are gathered in Lima for apex

540
00:27:48,840 --> 00:27:52,680
Speaker 4: CEO summit. That includes Google's VP of Government Affairs Corumbatia,

541
00:27:52,800 --> 00:27:55,040
Speaker 4: and we're going to hear from him next Stay with us.

542
00:27:55,200 --> 00:28:12,840
Speaker 6: This has Boombog Technology.

543
00:28:06,000 --> 00:28:09,320
Speaker 3: Apex CEO Summit. It's been underway for the last few days.

544
00:28:09,119 --> 00:28:09,760
Speaker 5: In Lima, Peru.

545
00:28:10,040 --> 00:28:12,560
Speaker 3: Global business leaders gathered to discuss the latest in the

546
00:28:12,600 --> 00:28:14,920
Speaker 3: space sector, in AI policy, and much more.

547
00:28:15,400 --> 00:28:16,480
Speaker 5: Most Lisa Bromo, it's.

548
00:28:16,359 --> 00:28:19,959
Speaker 3: Actually sat down with Google's VP of Government Affairs, Kuran Batia.

549
00:28:20,000 --> 00:28:20,520
Speaker 5: Take a listen.

550
00:28:21,760 --> 00:28:25,479
Speaker 17: In all honesty, I've been here today. The conversation actually

551
00:28:25,480 --> 00:28:29,560
Speaker 17: has mostly been and I've been meeting with foreign ministries

552
00:28:29,600 --> 00:28:34,879
Speaker 17: government officials has really mostly been about how can they

553
00:28:35,000 --> 00:28:39,040
Speaker 17: get the benefits of this amazing new technological revolution that's

554
00:28:39,040 --> 00:28:42,680
Speaker 17: happening around artificial intelligence. So they want to hear about

555
00:28:43,920 --> 00:28:46,560
Speaker 17: what can they be doing in terms of building infrastructure,

556
00:28:46,600 --> 00:28:49,160
Speaker 17: what can they be doing in terms of skilling their people.

557
00:28:49,680 --> 00:28:51,960
Speaker 17: There are you know, there's an awareness that there is

558
00:28:52,040 --> 00:28:57,200
Speaker 17: geopolitics that impacts the technology sector as well as everything else.

559
00:28:57,440 --> 00:28:59,880
Speaker 17: But frankly, it's been interesting to me to see how

560
00:29:00,120 --> 00:29:04,800
Speaker 17: much interest and appetite there is around getting that technological edge.

561
00:29:05,120 --> 00:29:07,920
Speaker 18: So how much have you been surprised or why is

562
00:29:07,920 --> 00:29:10,920
Speaker 18: it important for Google to be so heavily invested in

563
00:29:11,040 --> 00:29:13,880
Speaker 18: areas like Latin America, like zact East Asia.

564
00:29:14,120 --> 00:29:16,640
Speaker 17: Well, first of all, it kind of starts with our

565
00:29:16,840 --> 00:29:20,320
Speaker 17: mission as a company, which is to organize the world's

566
00:29:20,360 --> 00:29:23,600
Speaker 17: information and make it universally accessible and useful.

567
00:29:23,640 --> 00:29:25,640
Speaker 9: And that universal part.

568
00:29:25,560 --> 00:29:27,400
Speaker 5: Is really core to our being.

569
00:29:27,520 --> 00:29:31,479
Speaker 17: It's a recognition that Google's not fulfilling its mission if

570
00:29:31,480 --> 00:29:37,200
Speaker 17: we're not operating in places like Latin America, like Southeast Asia,

571
00:29:37,280 --> 00:29:41,080
Speaker 17: East Asia. So I think part of it literally has

572
00:29:41,120 --> 00:29:43,640
Speaker 17: to do with what it is we do every day,

573
00:29:43,840 --> 00:29:47,040
Speaker 17: and as the technology expands and as our business expands,

574
00:29:47,360 --> 00:29:48,360
Speaker 17: these regions.

575
00:29:48,040 --> 00:29:49,280
Speaker 12: Become more and more important.

576
00:29:49,720 --> 00:29:52,920
Speaker 17: Obviously, you can't look at the growth that's happening in

577
00:29:53,000 --> 00:29:57,600
Speaker 17: places in East Asia. Latin American markets are doing very

578
00:29:57,600 --> 00:30:00,640
Speaker 17: well and not being encouraged by sort of we're seeing.

579
00:30:03,000 --> 00:30:06,160
Speaker 4: That was Corumbatia, Google VP of Global Public Policy and

580
00:30:06,160 --> 00:30:09,240
Speaker 4: Government Relations. Let's get out to Lima, Peru and bring

581
00:30:09,240 --> 00:30:12,160
Speaker 4: in Bloombergs Lisa Rumvitz, who's been there for a few days.

582
00:30:12,200 --> 00:30:15,160
Speaker 4: And what's notable is the presence of big tech, right,

583
00:30:15,240 --> 00:30:18,680
Speaker 4: not just Google, Microsoft as well. What is it that

584
00:30:18,720 --> 00:30:20,520
Speaker 4: they were actually doing there, like give us a bit

585
00:30:20,560 --> 00:30:22,720
Speaker 4: more of a sense of the role that those tech

586
00:30:22,760 --> 00:30:24,080
Speaker 4: names played in the discussion.

587
00:30:26,800 --> 00:30:28,800
Speaker 18: It's a good question, And first I just want to

588
00:30:28,840 --> 00:30:31,080
Speaker 18: say it is notable that the big tech firms were

589
00:30:31,200 --> 00:30:34,360
Speaker 18: here because there were so many US companies that were absent.

590
00:30:34,600 --> 00:30:35,360
Speaker 5: We saw big.

591
00:30:35,200 --> 00:30:38,959
Speaker 18: Tech, we saw energy companies, we saw JP Morgan, but

592
00:30:39,040 --> 00:30:41,760
Speaker 18: other than that, US companies were kind of more on

593
00:30:41,800 --> 00:30:44,880
Speaker 18: the sidelines and Chinese companies much more present. Now when

594
00:30:44,920 --> 00:30:47,040
Speaker 18: you talk about some of the big tech names, they

595
00:30:47,040 --> 00:30:48,840
Speaker 18: want to make sure that they get their footprint as

596
00:30:48,880 --> 00:30:52,360
Speaker 18: everybody clamorous for the artificial intelligence bedrock that a lot

597
00:30:52,360 --> 00:30:55,600
Speaker 18: of people think will establish the next generation of business.

598
00:30:55,680 --> 00:30:58,640
Speaker 18: But here's the question, how can they do that when

599
00:30:58,720 --> 00:31:01,880
Speaker 18: regulatory regimes are not set? And that was sort of

600
00:31:01,920 --> 00:31:05,000
Speaker 18: the big existential aggs hanging over all of this. How

601
00:31:05,000 --> 00:31:07,840
Speaker 18: do you deal with the fact that President Trump, president

602
00:31:07,840 --> 00:31:11,200
Speaker 18: elect Trump will have different policies than President Biden, and

603
00:31:11,240 --> 00:31:13,360
Speaker 18: that even now we don't have a real sense of

604
00:31:13,400 --> 00:31:15,920
Speaker 18: what counts as national security when some of these companies

605
00:31:15,920 --> 00:31:17,680
Speaker 18: are expanding and what does.

606
00:31:17,520 --> 00:31:21,800
Speaker 3: It so true? Lisa, and we heard from Xijingping at

607
00:31:21,800 --> 00:31:24,680
Speaker 3: the event, the Chinese narrative coming and saying, look, let's

608
00:31:24,720 --> 00:31:29,240
Speaker 3: not backtrack, let's stick to a global economy here. But

609
00:31:29,360 --> 00:31:31,800
Speaker 3: how much do you take that at face value at

610
00:31:31,800 --> 00:31:35,600
Speaker 3: the moment? How all companies able to invest?

611
00:31:37,080 --> 00:31:39,719
Speaker 18: Well, this is a good question, and the answer is

612
00:31:39,760 --> 00:31:42,280
Speaker 18: they look at where they can and what they do know.

613
00:31:42,560 --> 00:31:44,080
Speaker 18: And I think that a lot of these companies have

614
00:31:44,200 --> 00:31:46,760
Speaker 18: made inroads when it comes to, for example, big tech.

615
00:31:46,800 --> 00:31:50,440
Speaker 18: They're looking for countries that have some energy infrastructure. So

616
00:31:50,480 --> 00:31:53,720
Speaker 18: a place like this which has a copper and lithium

617
00:31:53,760 --> 00:31:57,720
Speaker 18: and a whole host of other natural renewable energy sources

618
00:31:58,280 --> 00:32:01,200
Speaker 18: that is appealing on the large your scale, though, there

619
00:32:01,280 --> 00:32:04,000
Speaker 18: is a hesitance in certain sectors to really invest, and

620
00:32:04,040 --> 00:32:05,880
Speaker 18: you are seeing that, which is maybe why you're not

621
00:32:05,920 --> 00:32:09,560
Speaker 18: seeing some of the more consumer facing sectors like retail

622
00:32:10,160 --> 00:32:13,160
Speaker 18: really coming down here. But you're right, there is this

623
00:32:13,280 --> 00:32:16,440
Speaker 18: question of how do you invest in a time of change.

624
00:32:16,600 --> 00:32:18,960
Speaker 18: The answer is carefully, and that's what people are saying.

625
00:32:19,000 --> 00:32:21,560
Speaker 18: You are seeing on the margins, but it's select industries

626
00:32:21,760 --> 00:32:24,040
Speaker 18: and otherwise there is a bit of a paralysis as

627
00:32:24,080 --> 00:32:27,040
Speaker 18: people try to figure out what exactly comes next.

628
00:32:27,320 --> 00:32:31,520
Speaker 3: Lisa so busy, great conversations, key among them, Jamie Dimond.

629
00:32:31,560 --> 00:32:34,160
Speaker 3: We appreciate it, Lisa Bramowitz. On the ground there in Peru.

630
00:32:34,640 --> 00:32:37,480
Speaker 3: There's so much to unpack from the US election in

631
00:32:37,560 --> 00:32:41,280
Speaker 3: terms of geopolitics as well from a venture capital standpoint too,

632
00:32:41,320 --> 00:32:43,160
Speaker 3: from AI policies, tax implications.

633
00:32:43,360 --> 00:32:45,480
Speaker 5: Let's just get to it with a race between US

634
00:32:45,520 --> 00:32:45,960
Speaker 5: and China.

635
00:32:46,160 --> 00:32:48,960
Speaker 3: Let's discuss it with a venture investing on today's VC Spotlight.

636
00:32:49,000 --> 00:32:52,760
Speaker 3: Alfred Chuang Founer, General partner at Race Capital. Someone who

637
00:32:52,840 --> 00:32:56,040
Speaker 3: has built businesses yourself, be a systems for example, And

638
00:32:56,560 --> 00:32:59,040
Speaker 3: I'm really interested Alfred at this moment of how much

639
00:32:59,080 --> 00:33:03,800
Speaker 3: you are putting your mind to the future of US

640
00:33:03,920 --> 00:33:07,520
Speaker 3: China relations, the US global relations at this point.

641
00:33:08,520 --> 00:33:10,680
Speaker 1: Apparently, good morning, thank you for having me back by.

642
00:33:10,800 --> 00:33:11,440
Speaker 1: Good to CEEO.

643
00:33:12,960 --> 00:33:15,640
Speaker 9: This is a very interesting time. But I think just.

644
00:33:16,480 --> 00:33:18,880
Speaker 1: If you look at where all the activities are in

645
00:33:18,960 --> 00:33:21,920
Speaker 1: tech and inventure at this point, pretty much everything is

646
00:33:22,000 --> 00:33:25,000
Speaker 1: AI driven, whether they are like what we do, which

647
00:33:25,040 --> 00:33:28,000
Speaker 1: is straight in the plumbing. So I'm like the plumber

648
00:33:28,160 --> 00:33:31,760
Speaker 1: of Silicon Valley. Try to ment all the infrastructure, which

649
00:33:31,800 --> 00:33:35,240
Speaker 1: is all the critical pieces to enable the enterprise application.

650
00:33:35,760 --> 00:33:38,600
Speaker 1: Do now have a new network inside and be able

651
00:33:38,640 --> 00:33:40,960
Speaker 1: to be very smart and be very efficient and be

652
00:33:41,680 --> 00:33:45,880
Speaker 1: extraordinarily efficient. The China and the US part of it

653
00:33:45,920 --> 00:33:48,520
Speaker 1: is because the way that we train the data for

654
00:33:48,640 --> 00:33:51,800
Speaker 1: the large model itself, we're not completely separated.

655
00:33:51,840 --> 00:33:53,840
Speaker 9: So there's a model for China, there's.

656
00:33:53,720 --> 00:33:56,760
Speaker 1: A completely different model what we've been doing actual multiple

657
00:33:56,760 --> 00:33:58,360
Speaker 1: models in the United States.

658
00:33:58,840 --> 00:34:00,360
Speaker 9: Because I think a lot of it has to do

659
00:34:00,440 --> 00:34:01,000
Speaker 9: with history.

660
00:34:01,560 --> 00:34:04,040
Speaker 1: Our data are just so much more organized, and we

661
00:34:04,080 --> 00:34:07,000
Speaker 1: have systems that we've been preparing for the past decade,

662
00:34:07,000 --> 00:34:08,600
Speaker 1: you know, like all the things that we're put into

663
00:34:09,040 --> 00:34:13,040
Speaker 1: Spark data breaks, for example, we're all grape preparation for

664
00:34:13,239 --> 00:34:16,320
Speaker 1: organizing this data to make the computer thing like human.

665
00:34:16,680 --> 00:34:18,880
Speaker 1: So US has a huge advantage at this point in

666
00:34:18,920 --> 00:34:22,480
Speaker 1: time and time and getting ahead of this program.

667
00:34:23,160 --> 00:34:26,799
Speaker 3: I'm interested in just the supply chains fact a bit

668
00:34:26,840 --> 00:34:29,880
Speaker 3: there out for you talk about the efficiency, the clear

669
00:34:30,040 --> 00:34:33,200
Speaker 3: efficiency that's been built in the US, but we're about

670
00:34:33,200 --> 00:34:35,120
Speaker 3: to pledge you see, tariffs, so that we can't be

671
00:34:35,239 --> 00:34:37,600
Speaker 3: unaware of the fact that a lot of things are important,

672
00:34:37,800 --> 00:34:41,840
Speaker 3: even at the most high end technological element. Will that

673
00:34:42,480 --> 00:34:45,800
Speaker 3: put pains to efficiency here in the US.

674
00:34:46,239 --> 00:34:48,520
Speaker 1: I think there's already pain. I think obviously there's more

675
00:34:48,560 --> 00:34:50,920
Speaker 1: pain to the people that are not now allowed to

676
00:34:50,960 --> 00:34:52,960
Speaker 1: be importing the eight one hundred and one hundred form

677
00:34:53,000 --> 00:34:56,640
Speaker 1: En video. They're equivalently Obviously, supply chain is not like

678
00:34:56,640 --> 00:34:58,600
Speaker 1: what it used to be before COVID, so we have that

679
00:34:58,640 --> 00:35:01,680
Speaker 1: slowdown already at this point in time. There's never back

680
00:35:01,719 --> 00:35:04,200
Speaker 1: to non one. By the way, we are still very

681
00:35:04,239 --> 00:35:06,960
Speaker 1: behind in this country. So we're you know, we don't

682
00:35:06,960 --> 00:35:10,319
Speaker 1: have any babs right well, pfares have limited availability. We

683
00:35:10,360 --> 00:35:12,840
Speaker 1: are dependent on loot of fabs in Taiwan. Some of

684
00:35:12,880 --> 00:35:15,960
Speaker 1: these lower trips are building China still, so there's call

685
00:35:16,040 --> 00:35:18,920
Speaker 1: dependency between these countries in order to continue to advance.

686
00:35:18,960 --> 00:35:20,240
Speaker 9: At Ai and.

687
00:35:20,080 --> 00:35:23,960
Speaker 1: I'm you know, have great Hopdad, or the great reasons

688
00:35:23,960 --> 00:35:27,200
Speaker 1: of continuing to progress mankind, we don't start this trade

689
00:35:27,520 --> 00:35:28,879
Speaker 1: and which I don't think that will be the case,

690
00:35:28,920 --> 00:35:30,480
Speaker 1: because it just will be dysfunction.

691
00:35:33,160 --> 00:35:35,440
Speaker 4: I want to think about the environment a bit, Alfred.

692
00:35:35,560 --> 00:35:38,880
Speaker 4: This week, for example, my colleagues and I reported that

693
00:35:39,040 --> 00:35:42,799
Speaker 4: Data Breaks is doing a tender largely for employee liquidity.

694
00:35:43,400 --> 00:35:45,400
Speaker 4: And that's a name that Data Breaks. That that's in

695
00:35:45,440 --> 00:35:48,799
Speaker 4: your portfolio. But there are signed things are happening right,

696
00:35:49,040 --> 00:35:51,160
Speaker 4: whether it's the IPO market, whether it's.

697
00:35:51,040 --> 00:35:52,680
Speaker 6: Different kinds of exits through M and A.

698
00:35:53,239 --> 00:35:55,000
Speaker 4: I'm going to ask you what you think kind of

699
00:35:55,040 --> 00:36:00,000
Speaker 4: happens next, particularly under a Trump administration, for your portfolio

700
00:36:00,000 --> 00:36:02,880
Speaker 4: companies and vcs that are looking for an exit.

701
00:36:03,640 --> 00:36:03,879
Speaker 9: Yeah.

702
00:36:04,560 --> 00:36:06,919
Speaker 1: At Berger to CEO, thank you for having me back.

703
00:36:08,520 --> 00:36:11,759
Speaker 1: Database is in the unique case Database perhaps, which I

704
00:36:11,800 --> 00:36:16,560
Speaker 1: believe is probably the best, the most exciting, the fastest

705
00:36:16,560 --> 00:36:21,799
Speaker 1: growing large enterprise tech company and run by probably the

706
00:36:21,800 --> 00:36:23,000
Speaker 1: best CEO ever.

707
00:36:23,280 --> 00:36:26,359
Speaker 9: In enterprise tech. So they're in a unique place. I think.

708
00:36:26,440 --> 00:36:29,840
Speaker 1: Whatever they're going to do in fundraising is their choice

709
00:36:29,880 --> 00:36:32,440
Speaker 1: that they decided not to go to the proper marketplace

710
00:36:32,680 --> 00:36:34,960
Speaker 1: they might have qualified to do so. And I think

711
00:36:34,960 --> 00:36:37,359
Speaker 1: that's just by choice. And I think that choice come

712
00:36:37,440 --> 00:36:40,560
Speaker 1: from which I believe in the past ten days is

713
00:36:40,640 --> 00:36:43,080
Speaker 1: kind of how we feel with all the founders in

714
00:36:43,080 --> 00:36:46,040
Speaker 1: the valley, which is we're going through a rebook process.

715
00:36:46,200 --> 00:36:49,640
Speaker 1: Does rebook process will likely have a chance pose to

716
00:36:49,680 --> 00:36:56,120
Speaker 1: relook at how the SEC, the FDC, the CTPB, how

717
00:36:56,160 --> 00:36:59,120
Speaker 1: they're going to be conducting business, on their policies, how

718
00:36:59,120 --> 00:37:01,480
Speaker 1: they're going to regulate, how to get regularly AI, how

719
00:37:01,520 --> 00:37:05,560
Speaker 1: they're going to regulate other webprear technology, cryptos and other things.

720
00:37:05,640 --> 00:37:07,360
Speaker 1: And I think we kind of were stuck for the

721
00:37:07,440 --> 00:37:10,000
Speaker 1: last two three years, you know, in a place where

722
00:37:10,080 --> 00:37:13,000
Speaker 1: it's very difficult to get anything. Then from that perspective,

723
00:37:13,280 --> 00:37:16,400
Speaker 1: very little company, one IPO, very m and A happened.

724
00:37:16,719 --> 00:37:18,360
Speaker 9: So I think there's a.

725
00:37:17,880 --> 00:37:20,279
Speaker 1: Lot of new hook you know, we don't know, Yeah,

726
00:37:20,280 --> 00:37:22,560
Speaker 1: I mean, the new admonstration won't start until the twentyeth

727
00:37:23,320 --> 00:37:26,080
Speaker 1: of January. How are they going to do to do

728
00:37:26,120 --> 00:37:29,840
Speaker 1: things differently to kind of re enable this ability to

729
00:37:29,880 --> 00:37:30,160
Speaker 1: do some.

730
00:37:30,160 --> 00:37:30,800
Speaker 9: Of these things.

731
00:37:30,960 --> 00:37:34,120
Speaker 1: So I think I'm very optimistic I think next year

732
00:37:34,200 --> 00:37:37,080
Speaker 1: is going to be an unreal great year for innovation

733
00:37:37,239 --> 00:37:39,560
Speaker 1: and for our venture deployment.

734
00:37:39,200 --> 00:37:44,920
Speaker 6: Capital out for it very quickly.

735
00:37:46,080 --> 00:37:50,160
Speaker 4: The next area of growth for you, the fair the

736
00:37:50,239 --> 00:37:53,600
Speaker 4: next area of growth. Where are you looking right now?

737
00:37:53,640 --> 00:37:54,920
Speaker 4: We just have ten seconds?

738
00:37:55,200 --> 00:37:59,920
Speaker 1: Okay, ten seconds without a doubt, AI enabled enterprise applications.

739
00:38:00,200 --> 00:38:03,480
Speaker 1: Let's gette hundred percent efficiency on every individual they're using

740
00:38:03,560 --> 00:38:04,360
Speaker 1: enterprice computing.

741
00:38:04,920 --> 00:38:06,080
Speaker 9: That's where the growth would be.

742
00:38:06,320 --> 00:38:07,240
Speaker 6: That was ten seconds.

743
00:38:07,239 --> 00:38:10,320
Speaker 4: Alfred Trunk, founder and Race General Partner at Race Capital,

744
00:38:10,480 --> 00:38:22,000
Speaker 4: Thank you very much. Plantable Foods has already harnessed the

745
00:38:22,080 --> 00:38:25,800
Speaker 4: power of plants to manufacture the Ruby protein, which comes

746
00:38:26,040 --> 00:38:28,680
Speaker 4: from duck weed. Now the company's looking to grow the

747
00:38:28,719 --> 00:38:32,120
Speaker 4: popularity of the nutrient rich products with a new thirty

748
00:38:32,160 --> 00:38:35,320
Speaker 4: million dollars Series B funding. Round here with more Plantable

749
00:38:35,360 --> 00:38:38,600
Speaker 4: co founder Tony Martin's bacchini and welcome to the program.

750
00:38:38,719 --> 00:38:39,000
Speaker 9: Thank you.

751
00:38:39,640 --> 00:38:42,960
Speaker 4: Also known as water lentils. If you're not familiar with

752
00:38:43,040 --> 00:38:46,200
Speaker 4: duck weed, I don't really know where to start other

753
00:38:46,239 --> 00:38:50,000
Speaker 4: than you have some specific technology that has made something

754
00:38:50,080 --> 00:38:52,440
Speaker 4: others have tried a success.

755
00:38:53,000 --> 00:38:54,279
Speaker 6: Yeah, well we really tried to do it.

756
00:38:54,360 --> 00:38:57,360
Speaker 19: Plantable is to work backwards from what the food industry needs, right.

757
00:38:57,440 --> 00:38:59,480
Speaker 19: I think over the past couple of years, we've seen

758
00:38:59,600 --> 00:39:04,360
Speaker 19: the food industry being overwhelmed with synthetic, unhealthy or elecgenic ingredients,

759
00:39:04,560 --> 00:39:07,799
Speaker 19: and we started to look for a natural successor to

760
00:39:07,920 --> 00:39:11,400
Speaker 19: these unhealthy ingredients that they're using today. We found that

761
00:39:11,440 --> 00:39:14,000
Speaker 19: in an enzyme known as ribisco, which is funnily enough,

762
00:39:14,040 --> 00:39:16,680
Speaker 19: one of the most abundant proteins on the planet and

763
00:39:16,840 --> 00:39:19,440
Speaker 19: millions of people are consuming it on a daily basis

764
00:39:19,440 --> 00:39:22,400
Speaker 19: because it's present in every leafy green. Now, then we

765
00:39:22,440 --> 00:39:25,160
Speaker 19: started to look for the most cost efficient and environmentally

766
00:39:25,160 --> 00:39:28,360
Speaker 19: friendly way of scaling ribisco, and we found that in

767
00:39:28,400 --> 00:39:31,879
Speaker 19: this aquatic plant known as lemna or some other people

768
00:39:31,920 --> 00:39:33,080
Speaker 19: might call it water lentils.

769
00:39:33,280 --> 00:39:35,120
Speaker 4: And so, why do you need the thirty million dollars

770
00:39:35,400 --> 00:39:36,520
Speaker 4: of what's the process from here?

771
00:39:36,600 --> 00:39:38,399
Speaker 19: Yeah, So over the past couple of years, we've built

772
00:39:38,400 --> 00:39:42,359
Speaker 19: out our first commercial manufacturing module in West Texas, and

773
00:39:43,040 --> 00:39:45,239
Speaker 19: since then we've been able to start to fulfill some

774
00:39:45,280 --> 00:39:47,440
Speaker 19: of the commercial demand that's out there in the market.

775
00:39:47,440 --> 00:39:49,399
Speaker 19: But we're seeing that we aren't really able to keep

776
00:39:49,480 --> 00:39:51,640
Speaker 19: up with the demand that's out there, and so we

777
00:39:51,680 --> 00:39:53,759
Speaker 19: need to thirty million dollars in order to continue to

778
00:39:53,800 --> 00:39:57,240
Speaker 19: expand our manufacturing operations in Texas to fulfill the commercial

779
00:39:57,239 --> 00:39:58,160
Speaker 19: demand that's out there.

780
00:39:58,760 --> 00:40:01,560
Speaker 5: So Tony, am I eating this now? Is it available?

781
00:40:02,840 --> 00:40:03,640
Speaker 6: It is available?

782
00:40:03,719 --> 00:40:05,840
Speaker 19: You can Actually there are some products on the market

783
00:40:06,000 --> 00:40:09,640
Speaker 19: that contain our product at the moment, so absolutely you

784
00:40:09,680 --> 00:40:10,560
Speaker 19: can eat it right now.

785
00:40:10,800 --> 00:40:13,480
Speaker 3: Where are you in sort of the general approvals when

786
00:40:13,480 --> 00:40:16,240
Speaker 3: it comes to FDA, when it comes to Food Science

787
00:40:16,280 --> 00:40:17,360
Speaker 3: Authority as well.

788
00:40:17,960 --> 00:40:20,560
Speaker 19: Yeah, great question. So at the moment we're self affirmed Grass.

789
00:40:20,600 --> 00:40:23,520
Speaker 19: We're working with the FDA to get the final letter

790
00:40:23,680 --> 00:40:27,000
Speaker 19: of no questions from their site. In the meantime, we're

791
00:40:27,000 --> 00:40:29,920
Speaker 19: also working on a formal approval from the European Food

792
00:40:29,920 --> 00:40:32,279
Speaker 19: Safety Authority, which we hope to get by the end

793
00:40:32,280 --> 00:40:34,279
Speaker 19: of twenty twenty five early twenty twenty six.

794
00:40:34,640 --> 00:40:37,480
Speaker 3: What's it like in the world of raising capital for

795
00:40:37,719 --> 00:40:40,640
Speaker 3: food tech ad tech right now? Because it's been through

796
00:40:40,680 --> 00:40:42,120
Speaker 3: to some peaks and troughs, shall we.

797
00:40:42,040 --> 00:40:47,719
Speaker 19: Say, yeah, it's misogonistic as maybe the right word. But

798
00:40:47,840 --> 00:40:50,560
Speaker 19: I think we've been working incredibly hard as a team

799
00:40:50,640 --> 00:40:54,040
Speaker 19: to hit milestone after milestone and that has really allowed

800
00:40:54,120 --> 00:40:56,879
Speaker 19: us to propel the company forward show that we can

801
00:40:56,960 --> 00:40:59,680
Speaker 19: scale up, but also scale out our technology and prove

802
00:40:59,719 --> 00:41:02,839
Speaker 19: that they're true product market fit for our ingredient while

803
00:41:02,840 --> 00:41:05,840
Speaker 19: actually discovering new and new market opportunities every day of

804
00:41:05,880 --> 00:41:06,240
Speaker 19: the week.

805
00:41:06,640 --> 00:41:09,640
Speaker 4: Let's talk about the investors why they're interested in you?

806
00:41:09,840 --> 00:41:12,920
Speaker 4: Are they traditional texts? And how did you go about

807
00:41:12,960 --> 00:41:16,040
Speaker 4: doing this? It's a pretty tough environment. Actually, yeah, it

808
00:41:16,080 --> 00:41:17,200
Speaker 4: is a pretty tough environment.

809
00:41:17,600 --> 00:41:20,080
Speaker 19: I think like, why are these Why are the investors,

810
00:41:20,080 --> 00:41:23,200
Speaker 19: both the financial and the strategic investors interested? Is for

811
00:41:23,239 --> 00:41:25,319
Speaker 19: a couple of reasons, right, I think on the on

812
00:41:25,360 --> 00:41:28,160
Speaker 19: the financial side, we've obviously been able to show the

813
00:41:28,200 --> 00:41:30,759
Speaker 19: de risking of the technology, the de risking of the

814
00:41:30,840 --> 00:41:33,360
Speaker 19: market risk, and it's now a matter of solving the

815
00:41:33,400 --> 00:41:35,400
Speaker 19: operational risk as we move from being an R and

816
00:41:35,440 --> 00:41:38,160
Speaker 19: D company to a full fledged manufacturing company very quickly.

817
00:41:38,239 --> 00:41:39,239
Speaker 6: Chipotle is on there.

818
00:41:39,480 --> 00:41:41,480
Speaker 4: What's the kind of go to market I'm assuming that's

819
00:41:41,480 --> 00:41:44,359
Speaker 4: more a strategic partner, sure, and just financial Yeah.

820
00:41:44,360 --> 00:41:46,680
Speaker 19: I think about Chipotle as a company that's really whose

821
00:41:46,680 --> 00:41:50,520
Speaker 19: mission it is to produce food with integrity and basically

822
00:41:51,120 --> 00:41:54,480
Speaker 19: create delicious, clean label and healthy foods for the consumers

823
00:41:54,480 --> 00:41:54,799
Speaker 19: out there.

824
00:41:54,800 --> 00:41:56,960
Speaker 9: And what we're able to do is We're able.

825
00:41:56,719 --> 00:41:59,080
Speaker 19: To allow them to unlock new recipes or improve their

826
00:41:59,120 --> 00:42:02,560
Speaker 19: current recipes without having to introduce new allergence or food

827
00:42:02,560 --> 00:42:04,560
Speaker 19: safety risk containing ingredients.

828
00:42:04,760 --> 00:42:06,319
Speaker 3: I'm going to look at the ponds near me in

829
00:42:06,360 --> 00:42:08,640
Speaker 3: a whole new way water Lentils.

830
00:42:08,719 --> 00:42:09,279
Speaker 5: That's their name.

831
00:42:09,360 --> 00:42:11,880
Speaker 3: Plantable co founder Tony Martin's bikini.

832
00:42:12,280 --> 00:42:14,600
Speaker 5: Great to have some time with you. Congratulations on the rais.

833
00:42:15,239 --> 00:42:15,439
Speaker 19: Well.

834
00:42:15,640 --> 00:42:17,880
Speaker 5: That does it for this edition of Bloomberg Technology.

835
00:42:18,000 --> 00:42:21,680
Speaker 4: What a week, ed, Yeah, another astonishing week, a historic

836
00:42:21,719 --> 00:42:23,520
Speaker 4: week in many ways in the context of the election,

837
00:42:23,760 --> 00:42:26,279
Speaker 4: but also tech. Check out the podcast It's Worth the

838
00:42:26,320 --> 00:42:30,319
Speaker 4: recap online on Apple, Spotify and also on iHeart. Big

839
00:42:30,360 --> 00:42:32,279
Speaker 4: thank you to the team in New York and here

840
00:42:32,280 --> 00:42:33,280
Speaker 4: in San Francisco.

841
00:42:33,760 --> 00:42:35,319
Speaker 6: This is Bloomberg Technology.