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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive

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Speaker 1: from coast to coast with Caroline Hyde in New York

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Speaker 1: and Eva Low in San Francisco.

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Speaker 2: This is Bloomberg Tech coming up. AMD fails to impress

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Speaker 2: with its latest earnings. Shares volatile amid rising AI valuation

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Speaker 2: concerns from investors, plus a historic victory for Zoram Mamdani,

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Speaker 2: the new mayor of New York, will discuss what is

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Speaker 2: election means for the city's tech scene, and all eyes

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Speaker 2: on Tesla as the company's shareholders are set to vote

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Speaker 2: on a proposed one trillion dollar pay package for Elon Musk.

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Speaker 2: There are two names in the markets that we're watching

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Speaker 2: most closely, and that's in the earnings context right now.

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Speaker 2: AMD is basically swung between modest declines and modest gains

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Speaker 2: all morning long. It gave an outlook for the current

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Speaker 2: period that was well in line with consensus but did

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Speaker 2: not beat the most bullish estimates. And everyone's trying to

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Speaker 2: work out is they're making some ground up in the

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Speaker 2: AI data center context in the near term, or is

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Speaker 2: it their legacy businesses processes for pc CPUs for serverts

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Speaker 2: doing the business super Micro similar story. The outlook for

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Speaker 2: earnings in the current period below consensus traction struggles when

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Speaker 2: it comes to have they worked this whole AI thing

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Speaker 2: out on the server side? That stock down seven percent.

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Speaker 2: Let's get those stories with Bloomberg's executive editor for Tech,

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Speaker 2: Peter Elstrom, and start with AMD. It's been really hard

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Speaker 2: to pass this one. Right when the stock felon issue,

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Speaker 2: You're like, Okay, the stock rally over in chips, but

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Speaker 2: actually investors are just playing what AMD is put in front.

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Speaker 3: Of them right right, It's been a rough twenty four

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Speaker 3: hours for chip stocks. We saw that in Asia, we

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Speaker 3: also saw it in Europe. AMD is a bit of

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Speaker 3: a different story. The stock has been on such a tier.

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Speaker 3: It's up about one hundred percent this year's so far.

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Speaker 3: I think investors were looking for an impressive result from them.

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Speaker 3: What they're really looking for is AMD. As you alluded to,

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Speaker 3: they still have a hand in the traditional business of

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Speaker 3: PCs and servers, and they're moving more aggressively into this

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Speaker 3: AI space to compete with in Vidia. Now they're not

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Speaker 3: growing as quickly as in Vidia. Video is up growing

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Speaker 3: in the fifty percent range. At this point, AMD has

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Speaker 3: been more in the thirty percent range. People really want

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Speaker 3: to see whether the AI business, the AI chips that

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Speaker 3: AMD is offering, are going to take off and AMD

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Speaker 3: is going to be able to accelerate that growth rate.

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Speaker 3: We didn't see that. As you mentioned, they did have

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Speaker 3: a pretty solid beat on the revenue side, but it

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Speaker 3: was not as high as some people had been expecting. Also,

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Speaker 3: the operating expenses were a little bit higher than expected,

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Speaker 3: probably suggesting that more of their business was on the

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Speaker 3: old traditional PC business rather than the AI business.

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Speaker 2: Peter, help us make sense of super Micro. There was

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Speaker 2: a time where that was a stock and a name

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Speaker 2: caught up in broad and enthusiasm for AI. But at

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Speaker 2: the end of the day, super Micro assembles servers and

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Speaker 2: server designs for others. What do we learn from their print.

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Speaker 3: Right, Well, super Micro has had a few cross currents

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Speaker 3: that we have been looking at. They had some accounting

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Speaker 3: accounting issues. They announced a couple of revisions to what

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Speaker 3: they were reporting in their financials, and now their outlook

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Speaker 3: is coming in a little bit light. Their revenues for

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Speaker 3: the current quarter were a little light. Also, their projection

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Speaker 3: from the next quarter is a little bit light. I

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Speaker 3: think people are concerned that This has been an AI play.

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Speaker 3: They have benefited from the fast growth and AI demand

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Speaker 3: in the past, but it looks like they're losing some

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Speaker 3: of that momentum at this point. That could be because

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Speaker 3: competitors like Dell are picking up more market share. It

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Speaker 3: could also be because we're seeing some of these companies

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Speaker 3: do more of this construction, the building the AI chips

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Speaker 3: into servers themselves, and that would take away business from

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Speaker 3: super micro.

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Speaker 4: Max.

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Speaker 2: Peter Elstrom with the summary, thank you very much. Let's

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Speaker 2: get some more on AMD, the Wyder chip sector, and

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Speaker 2: what's really happening with AI evaluations. Joe Ane Feenie Advisors,

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Speaker 2: Capital management partner and portfolio manager joins us. I restart

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Speaker 2: with you how I did with Peter, right that the

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Speaker 2: market is confronted with AMD's earnings and trying to work

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Speaker 2: out is this then gaining some territory on Nvidia in

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Speaker 2: the accelerator card market or are they getting a boost,

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Speaker 2: particularly in the court of gone from those legacy business

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Speaker 2: lines PC processors, CPU for server. Let's just start there.

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Speaker 2: What did you learn from AMD?

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Speaker 5: Yeah, good morning, ed. We're seeing all of that from AMD,

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Speaker 5: and let's start with the old, boring part of AMD

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Speaker 5: right the PC, the CPUs, the standard server CPUs where

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Speaker 5: they're clearly continuing to gain share versus Intel, and that's

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Speaker 5: a good cash generator for the company. So we shouldn't

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Speaker 5: dismiss that acceleration that we saw there, that success that

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Speaker 5: they're continuing to deliver in terms of share gains. Obviously,

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Speaker 5: a lot of investors are still focused pretty much on

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Speaker 5: the AI opportunity, and what's interesting there is that they've

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Speaker 5: just gotten started. They've only now developed solutions for those

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Speaker 5: accelerators that meet the quality for inference, for example, potentially

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Speaker 5: for training that in Vidia has in the past. When

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Speaker 5: we've seen AMD leapfrug Intel back in the old days,

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Speaker 5: they gained an enormous amount of share. We saw that

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Speaker 5: again this time around. Now they have a new opportunity

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Speaker 5: to gain share in the AI accelerator. We're not seeing

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Speaker 5: them gain share except for just a little bit as

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Speaker 5: they get started today. But I think that's something we

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Speaker 5: can look forward to.

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Speaker 2: Bloomberg's Ian King, who you know, made a really simple

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Speaker 2: point yesterday on the program ahead of AMD earnings. The

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Speaker 2: data center category is just north of four billion dollars

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Speaker 2: a quarter business. In Vidia's data center category is forty

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Speaker 2: billion dollars or north of forty billion dollars each quarter

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Speaker 2: in aggregate. Do you see all those ships rising right now?

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Speaker 2: With the tide that is AI infrastructure investment?

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Speaker 5: It still is ed. We're still seeing the pie expand

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Speaker 5: or tie rise, or whatever analogy you want. But what

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Speaker 5: AMD has that Nvidia doesn't have is an opportunity to

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Speaker 5: take a greater share of that pie as it grows.

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Speaker 5: And so you know, I expect we're going to see

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Speaker 5: both companies continue to grow very strongly over time. We

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Speaker 5: own both of those for clients. I own both of

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Speaker 5: them personally because I think this is an opportunity in

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Speaker 5: AI that is just beginning. I think we have many

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Speaker 5: years ahead. And what we're seeing also in those results

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Speaker 5: from AMD and elsewhere is that enterprises, sovereigns are looking

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Speaker 5: to deploy AI and that's what's helping to continue to

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Speaker 5: grow that pie.

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Speaker 2: John Phoenix to bear with us New York City mayor

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Speaker 2: elects or A mum Dani is speaking in Queens, New York.

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Speaker 4: I now hold, the poetry of campaigning may have come

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Speaker 4: to a close last night at nine, but the beautiful

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Speaker 4: prose of governing has only just begun. The hard work

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Speaker 4: of improving New yorkers lives starts now. That process begins

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Speaker 4: with transition. In the coming months, I and my team

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Speaker 4: will build a city Hall capable of delivering on the

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Speaker 4: promises of this campaign. We will form an administration that

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Speaker 4: is in equal parts capable and compassionate, driven by integrity,

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Speaker 4: and willing to work just as hard as the millions

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Speaker 4: of New Yorkers who.

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Speaker 2: Call this city home.

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Speaker 4: And central to that effort is a transition team that

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Speaker 4: is defined by the excellence New Yorkers will soon come

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Speaker 4: to expect from government. Our team will be directed by

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Speaker 4: Ilana Leopold, whose roots in this city extend back to

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Speaker 4: her grandmother running the trams on Roosevelt Island. She has

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Speaker 4: extensive experience in city government and has been a key

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Speaker 4: part of our campaign to become the next mayor of

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Speaker 4: this city. And it will be led by our formidable

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Speaker 4: co chairs former Federal Trade Commissioner Chair Lena Khan, former

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Speaker 4: First Deputy Mayor Maria Tis Springer, United Way President and

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Speaker 4: CEO Grace Bonia, and former Deputy Mayor for Health and

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Speaker 4: Human Services Melanie Hartzog. Over the coming days, we'll start

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Speaker 4: announcing the leaders who will implement our agenda. People like

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Speaker 4: deputy mayors who oversee entire areas of government, and the

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Speaker 4: commissioners who carry out the critical work of city agencies.

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Speaker 4: Some of these people will have familiar names, others will not.

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Speaker 4: What will unite them will be a commitment to solving

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Speaker 4: old problems with new solutions. We will cast a wide net.

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Speaker 4: We will speak to the organizers on the front lines

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Speaker 4: of the fight to improve our city government, veterans with

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Speaker 4: proven track records, policy experts from around the country and

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Speaker 4: the world, and working people who know better than anyone

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Speaker 4: what their neighborhoods need. Throughout this campaign, I've worked hard

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Speaker 4: to be accessible and transparent with New Yorkers. That same

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Speaker 4: spirit will animate this transition and the city all we built.

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Speaker 4: Because New Yorkers deserve a government that they can trust.

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Speaker 4: And on January first, when our city celebrates the inauguration

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Speaker 4: of a new administration, let us also celebrate a new

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Speaker 4: era for our city, one that we all feel invested

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Speaker 4: in and whose success we all work to achieve. Now,

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Speaker 4: it is my pleasure to invite Ilana Leopold to deliver

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Speaker 4: a few words Thank you, thank you.

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Speaker 5: Good morning.

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Speaker 6: My name is Ilana Leopold and I'm very honored to

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Speaker 6: serve as the executive director of Mayor Elect Mom Donnie's

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Speaker 6: leadership team. I want to thank Zoron for his faith

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Speaker 6: in me both on.

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Speaker 2: The campaign that was New York City Democratic Mayor Elect

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Speaker 2: Zorah Mamdani generation, speaking after his win last night, elected

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Speaker 2: the one hundred and eleventh mayor of New York City,

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Speaker 2: the youngest mayor elect in a century. Let's get the

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Speaker 2: reaction now and some of the technology is respective and

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Speaker 2: avowed democratic socialist in charge of the city that serves

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Speaker 2: as the capital of global finance, increasingly a major technology hub.

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Speaker 2: Judy Samuels is the CEO of Tech NYC, a network

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Speaker 2: of tech leaders working to foster New York's tech scenes.

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Speaker 2: She joins us now and will give us the reaction

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Speaker 2: Tech NYC. Will this mayor be a good mayor for

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Speaker 2: your industry in New York City?

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Speaker 7: Oh listen, I think we don't know. I think what's

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Speaker 7: good for New York tends to be good for tech here.

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Speaker 7: Zornmamdannie ran on a campaign of making New York affordable

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Speaker 7: of He ran in a campaign that really celebrated a

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Speaker 7: lot of what people love about New York. People love

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Speaker 7: to be out in the streets. So if people want

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Speaker 7: to be here, if young people want to be here,

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Speaker 7: the tech companies will continue to want to be here.

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Speaker 7: And clearly we heard loud and clear yesterday that a

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Speaker 7: lot of young people want Zurmumdannie to be mayor. There

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Speaker 7: are a lot of tech workers who voted for him.

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Speaker 7: Of course, you know, that's the bull case, right The

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Speaker 7: Baar case, of course, is that you're going to have

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Speaker 7: someone who is anti business. I hope that's not the case,

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Speaker 7: but there's so many unknowns right now.

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Speaker 2: Julie, you said that a lot of the technology industry

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Speaker 2: turned out and voted for him. Voter turnout was a

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Speaker 2: critical data point overnight. What's your reaction to that data point.

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Speaker 7: Well, listen, as a practical matter, I think more people

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Speaker 7: voting always better, So we're really glad to see that

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Speaker 7: was the case. And in fact, even as early as

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Speaker 7: the primary months ago, the data was the data were

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Speaker 7: very clear that people who worked in tech were donating

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Speaker 7: a lot of money to Zorn Mamdani's campaign. So it's

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Speaker 7: not a surprise. You know, we can quickly or easily,

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Speaker 7: I should say, draw a line to understand that a

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Speaker 7: lot of tech workers, young tech workers did vote for

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Speaker 7: him yesterday. Clearly you know so much about Zoron's campaign,

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Speaker 7: I think resonated with people in the tech industry. It

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Speaker 7: had the flavor of a startup. It really disrupted the

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Speaker 7: status quo of politics in New York and I think

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Speaker 7: that resonated with a lot of people who work in tech.

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Speaker 2: Julie, there is always a difference, of course, between policy

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Speaker 2: platform in the context of a campaign's and then policy

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Speaker 2: platform when in office. But the consensus seems to be

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Speaker 2: that mister Mumdani is in favor of sort of pro

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Speaker 2: housing revisions to the city's charter right making housing available

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Speaker 2: and more affordable. Technology as a sector tends to have

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Speaker 2: higher pay and perhaps you know, apply to a higher

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Speaker 2: to middle income earning bracket. Are they really going to

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Speaker 2: be focused on a policy around affordable housing.

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Speaker 7: Well, I think that's a really great question. And in fact,

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Speaker 7: the organization I run Tech NYC put out research with

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Speaker 7: Zillah just maybe a year org that showed that even

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Speaker 7: people who have high paying jobs in tech are having

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Speaker 7: a hard time affording housing in New York City. So

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Speaker 7: it is not when we talk about affordable housing is

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Speaker 7: it runs across the entire spectrum. For so many people,

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Speaker 7: it's unaffordable, and so I think that more housing is

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Speaker 7: better for tech in New York. We've seen the same

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Speaker 7: dynamic in San Francisco, of course, that the need to

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Speaker 7: build more housing so more people from across the economic

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Speaker 7: spectrum can live here, build their careers here, grow their

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Speaker 7: family here. I am really incredibly in favor of the

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Speaker 7: pro housing initiatives that won yesterday.

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Speaker 2: Is there an opportunity, Julie, for you to work with

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Speaker 2: this mayor and this administration to bring it a sort

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Speaker 2: of closer relationship apologies between you and the administration.

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Speaker 7: Absolutely, I think there's a lot of opportunity. I think

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Speaker 7: the thing I'm most hopeful about is modernizing government government efficiency.

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Speaker 7: So our mom, Donnie is what is a very progressive

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Speaker 7: candidate now Mayor elect, and progress means government that works better.

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Speaker 7: So we need to unleash technology in New York City

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Speaker 7: government to work better for New Yorkers. But we also

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Speaker 7: will need to be really careful and when we work

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Speaker 7: with his team, or sometimes when we disagree with his team,

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Speaker 7: to ensure that the tech economy continues to thrive here,

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Speaker 7: that businesses continue to grow here. This is the future

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Speaker 7: of the economy in the world. Technology is of course

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Speaker 7: and needs to also be the future of the economy

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Speaker 7: in New York City. So we have to work together.

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Speaker 7: We have no other choice.

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Speaker 2: What do you disagree with his team on and what

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Speaker 2: would you ask mister Mumdani to reconsider in terms of policy.

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Speaker 7: Oh, that's a really that's a great question. I think

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Speaker 7: that I don't know what we disagree with necessarily at

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Speaker 7: this point, but I can tell you what we'll be

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Speaker 7: watching for again, the use of technology in government. We

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Speaker 7: think that's crucial, and I want to make sure that

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Speaker 7: his team that the incoming may understand that some of that,

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Speaker 7: you know, requires some experimentation and requires being open minded

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Speaker 7: about new uses of technology. Also, you know, I think

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Speaker 7: there are concerns that I hope don't come to be,

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Speaker 7: but there are some concerns that there's kind of like

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Speaker 7: an anti business dynamic. We haven't talked about raising taxes.

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Speaker 7: I haven't brought that up because you can't do that

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Speaker 7: without the state. You can't do that without Albany. Obviously,

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Speaker 7: a lot of people in tech would not be excited

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Speaker 7: about more income tax, more corporate tax, So that I'm

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Speaker 7: sure will be an issue that comes up over the

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Speaker 7: next four years.

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Speaker 2: New York City Mayor elect Zura Mundani, the one hundred

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Speaker 2: and eleventh mayor of New York to be elected, is

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Speaker 2: an avowed Democratic socialist, and one of the big stories

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Speaker 2: of this year twenty twenty five has been the move

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Speaker 2: of key figures in the technology industry to put themselves

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Speaker 2: in close proximity to President Trump and the administration currently

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Speaker 2: in the White House. Are both of those things achievable

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Speaker 2: at the same time for mister mum Dannie to have

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Speaker 2: relationships of key figures in your industry at the same

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Speaker 2: time that they try and be close to this president

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Speaker 2: and the Republican Party.

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Speaker 7: I think I think that's a really good question, and

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Speaker 7: I think we're going to see. I'd point out that

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Speaker 7: most of the particular tech leaders you're talking about are

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Speaker 7: actually not New Yorkers, but they do run companies that

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Speaker 7: have incredibly large presences in New York City. I think

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Speaker 7: that I hope that, let me say, I hope that

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Speaker 7: zoramum Danni and his team fundamentally understand that the future

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Speaker 7: of our city's economy, the future of opportunity for New

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Speaker 7: Yorkers is inextricably intertwined with the growth of the tech

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Speaker 7: sector here. And if those jobs aren't here, they will

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Speaker 7: go somewhere else. And if those resources aren't here, they

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Speaker 7: will go somewhere else. And I just have to believe,

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Speaker 7: I do believe that we can find a way to

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Speaker 7: work together to ensure that all New Yorkers have the

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Speaker 7: opportunity to benefit from the growth that technology is bringing

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Speaker 7: to the city.

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Speaker 2: Let's end that there then July by asking what is

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Speaker 2: the one first ask that you have for Mayor Elect

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Speaker 2: Mumdani on behalf of your members and the technology industry

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Speaker 2: in New York City.

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Speaker 7: I think the first big ask will be to really

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Speaker 7: drill down and figure out how we can find a

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Speaker 7: way to use technology to make New York City government

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Speaker 7: work better for New Yorkers.

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Speaker 2: Julie Samuel's CEO of Tech NYC, with immediate reaction to

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Speaker 2: Mayor Elect Zora Mumdani speaking for the first time since

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Speaker 2: his win last night. There are other news headlines It's

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Speaker 2: time for talking tech and first st up. The US

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Speaker 2: government says it's nearing the end of its investigation into

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Speaker 2: Google's thirty two billion dollar acquisition of cybersecurity firm Wiz.

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Speaker 2: The deal, announced in March, prompted an in depth probe

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Speaker 2: by the Justice Department. While that review is now wrapping up,

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Speaker 2: the acquisition remains under scrutiny from other anti trust regulators. Plus,

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Speaker 2: Google and Epic Games have reached a settlement in their

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Speaker 2: long running anti trust dispute over how developers distribute my

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Speaker 2: Tize apps on the Android platform. The deal follows Google's

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Speaker 2: court ordered play store changes to allow more competition. Exact

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Speaker 2: terms of the agreement weren't disclosed, and the scientist who

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Speaker 2: led ten cents flagship AI model has raised fifty million

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Speaker 2: dollars for his new startup, Video Rebirth, which aims to

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Speaker 2: rival OpenAI Sourra. Founded by Leeway, the company seeks to

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Speaker 2: make video creation as intuitive as chatting with an AI.

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Speaker 2: The platforms expected to launch in December. Okay, coming up.

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Speaker 2: Amazon goes after Perplexity, suing the AI startup from using

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Speaker 2: its own AI tool to help shoppers. We've got more

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Speaker 2: on that next. This is Bloomberg Tech. Amazon is suing

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Speaker 2: Perplexity over its AI shopping tool, known as Common, which

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Speaker 2: helps users buy items on Amazon. The retail giant alleges

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Speaker 2: Perplexity committed computer fraud and violated its terms of service

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Speaker 2: by failing to disclose when Comet was making purchases on

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Speaker 2: behalf of real people for more, as Sketz of bloemost

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Speaker 2: Matt Day, who leads our coverage of Amazon, this is

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Speaker 2: an interesting move. We've covered Comet and Perplexity on the

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Speaker 2: show We Understand Amazon, just I think start by explaining

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Speaker 2: the grievance that Amazon has and the accusation Amazon's making

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Speaker 2: against Perplexity and what they're doing.

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Speaker 8: So Amazon says that you know, what Perplexity is doing

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Speaker 8: here is masking who's on its website.

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Speaker 9: Right.

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Speaker 8: They've alleged that Perplexity inserted sort of the same code

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Speaker 8: that would make Amazon Systems think it was just a

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Speaker 8: regular Google Chrome user, when in fact it was not

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Speaker 8: a mad agent going on their site. And so Amazon's

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Speaker 8: raised a whole host of concerns, you know, saying account

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Speaker 8: integrity could be compromised, saying, you know, if someone has

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Speaker 8: to make a return, you know who's at fault. What

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Speaker 8: goes on here? Basically kind of a turf war over

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Speaker 8: the customer experience on their retail side.

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Speaker 2: Okay, we've heard from Perplexity both through a spokesperson, but

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Speaker 2: they also put out their own commentary and a blog

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Speaker 2: summarize it for us.

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Speaker 8: So they are accusing Amazon of bullying.

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Speaker 2: You know.

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Speaker 8: They say they don't see a meaningful distinction between a

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Speaker 8: user who said, listen, I want to purchase something on Amazon.

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Speaker 8: I'm going to authorize Perplexity to go, you know, make

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Speaker 8: the computer plumbing that makes that work. They say that

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Speaker 8: that's no different than someone navigating with a mouse and keyboard.

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Speaker 9: Right.

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Speaker 8: Obviously Amazon has a different view, but Perplexity seems to

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Speaker 8: want to take a stand here and kind of stick

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Speaker 8: up for this new potential commerce venue that they're deploying

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Speaker 8: with their comment browser.

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Speaker 2: Right, you cover Amazon so deeply, like, is this the

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Speaker 2: playbook Amazon goes to? Are they typically litigious? Are they

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Speaker 2: looking over their shoulder in a real way?

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Speaker 8: I think they really are looking over their shoulder here.

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Speaker 8: I mean they've said AI is going to change everything.

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Speaker 8: You know, there's debates going on right now about what

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Speaker 8: is a browser. So this is probably the first of

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Speaker 8: many debates that we're going to have, you know, in

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Speaker 8: public and in private, as these companies negotiate on just

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Speaker 8: how you know, who owns the experience when agents are

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Speaker 8: I'm going all over the internet rather than individual users

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Speaker 8: with hands and eyes really quick.

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Speaker 2: What happens next?

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Speaker 8: Oh, we'll see if they settle right, And I don't

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Speaker 8: think anybody wants to see if they scott a court

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Speaker 8: and all this NFTY discovery come out right. So I

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Speaker 8: think the obvious question in a case like this is

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Speaker 8: can they come to some agreement?

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Speaker 2: Bloombo's Matt Day Ada, Seattle, Thank you very much. Another story.

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Speaker 2: It was the breakout hit of the summer. K Pop

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Speaker 2: Demon Hunters became Netflix's biggest original film of all time. Now,

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Speaker 2: with the chance to build a global franchise, there's just

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Speaker 2: one thing missing for the holiday season. The merch. Bluebag's

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Speaker 2: entertainment editor Lucas Shaw is here with more I've learned

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Speaker 2: through you in attending screen time in the context of movie, TV,

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Speaker 2: video games, that merchandising and franchising into other IP or

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Speaker 2: from the core IP is so important. Basically, those big

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Speaker 2: K pop fans are not going to be able to

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Speaker 2: get hold of so C toys and other things this

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Speaker 2: holiday season. Explain the story to us.

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Speaker 9: Well, comes back to the movie, which was a surprise hit.

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Speaker 10: You know, when you have a new property, you go

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Speaker 10: to retailers and toy manufacturers, your Mattel, your Hasbro, Walmart, Target,

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Speaker 10: and say, hey, we have this movie coming in like

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Speaker 10: a year or two. We think it's going to be

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Speaker 10: really popular with kids. Do you want to partner on things?

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Speaker 10: Will you give a shelf space because they need that.

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Speaker 10: The toy manufacturers in particular need time to make the toys,

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Speaker 10: which takes a while, and it involves international shipping and

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Speaker 10: all of that. And there was not a lot of

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Speaker 10: confidence in this project, both because it was an original

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Speaker 10: animated movie, which hasn't Those types of movies haven't done

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Speaker 10: very well at the box office. Mostly sequels have been

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Speaker 10: doing well, and Netflix just doesn't have a track record

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Speaker 10: in this regard. And so it was only after this

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Speaker 10: movie became so popular that everyone scrambled and they now

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Speaker 10: say they're.

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Speaker 9: Moving the fastest they've ever moved. But it still means

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Speaker 9: that a lot.

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Speaker 10: Of the projects, a lot of the toys and other

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Speaker 10: things won't be.

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Speaker 9: Available until next time.

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Speaker 2: We know that the holiday quarter is really important. For example,

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Speaker 2: we talk about it in the context of the new

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Speaker 2: iPhone being on sale. But I guess in this story

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Speaker 2: who's suffering here? Like, is it Netflix that is going

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Speaker 2: to have to claw to make up some ground. Where

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Speaker 2: is the kind of opportunity lost revenue loss?

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Speaker 10: Yeah, I think it's it's shared between the toy companies,

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Speaker 10: the retailers, and Netflix. But they would all like to believe,

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Speaker 10: and they're all saying that it is sort of short

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Speaker 10: term pain. That yes, you know, they won't have all

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Speaker 10: they can't maximize what they're getting from the holiday season,

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Speaker 10: but they will have properties next year, and that this

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Speaker 10: is something they're building for the long term, and that

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Speaker 10: if the second movie, which won't come for four years,

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Speaker 10: is really popular, that this will all sort of.

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Speaker 2: Be a footnote in history.

438
00:23:47,880 --> 00:23:50,680
Speaker 10: Now that's dependent on them making a good second movie

439
00:23:50,680 --> 00:23:51,639
Speaker 10: and building the bridge.

440
00:23:52,600 --> 00:23:53,600
Speaker 9: But short term.

441
00:23:53,400 --> 00:23:57,560
Speaker 2: Pain, Lucas really quick, Warner Brothers, Discovery. What's the need

442
00:23:57,600 --> 00:23:57,800
Speaker 2: to know?

443
00:23:59,359 --> 00:24:01,320
Speaker 10: I mean, all everyone's going to want to know about

444
00:24:01,440 --> 00:24:03,560
Speaker 10: is who is buying them? And how you know the

445
00:24:03,600 --> 00:24:06,480
Speaker 10: company is. The cable networks are not doing so hot?

446
00:24:06,680 --> 00:24:09,879
Speaker 10: Is streaming growing? How's HBO max looking? The movie studio

447
00:24:09,960 --> 00:24:13,400
Speaker 10: had a pretty decent summer, but the big question hanging

448
00:24:13,440 --> 00:24:16,240
Speaker 10: over the company is who's going to buy it?

449
00:24:16,320 --> 00:24:19,000
Speaker 2: Binos Lucas Shaw, who leads our coverage of screen Time

450
00:24:19,040 --> 00:24:29,720
Speaker 2: and Entertainment. Thank you very much. Welcome back to Bloomberg Tech.

451
00:24:30,000 --> 00:24:31,399
Speaker 2: Let's get a look at the markets some of the

452
00:24:31,400 --> 00:24:33,119
Speaker 2: other stories. So we're trying to pass a lot of

453
00:24:33,160 --> 00:24:36,120
Speaker 2: it's still earnings related, and look at this one. Pinterest

454
00:24:36,200 --> 00:24:38,560
Speaker 2: is down more than twenty one percent, on track for

455
00:24:38,640 --> 00:24:40,880
Speaker 2: its biggest drop since the middle of twenty twenty two,

456
00:24:41,240 --> 00:24:44,600
Speaker 2: and it's all about an outlook for the holiday quarter

457
00:24:44,960 --> 00:24:48,280
Speaker 2: that is completely tepid. The market is reactioning to this

458
00:24:48,960 --> 00:24:52,679
Speaker 2: with some severity, and how common is that story across

459
00:24:52,720 --> 00:24:54,760
Speaker 2: all of the names that we've been tracking. But when

460
00:24:54,760 --> 00:24:57,200
Speaker 2: the team met this morning planned the show, we were like, whoa,

461
00:24:57,760 --> 00:24:59,560
Speaker 2: we need to get this one in. It's as simple

462
00:24:59,600 --> 00:25:01,600
Speaker 2: as the out look for the holiday period, and we'll

463
00:25:01,600 --> 00:25:03,640
Speaker 2: give you more when we get it. Okay. Other news

464
00:25:03,640 --> 00:25:06,160
Speaker 2: that we're tracking, Apple is said to be adding a new,

465
00:25:06,320 --> 00:25:10,600
Speaker 2: cheaper MacBook to its lineup, rivaling Google's Chromebooks and Windows

466
00:25:10,640 --> 00:25:14,160
Speaker 2: PCs Bluebos. Samantha Kelly joins us now for more. So

467
00:25:14,359 --> 00:25:17,040
Speaker 2: this is an interesting one. I'm a MacBook user. I

468
00:25:17,080 --> 00:25:20,959
Speaker 2: also have a Windows based PC that I used through work.

469
00:25:21,560 --> 00:25:24,360
Speaker 2: The main thing is the price differential in the market.

470
00:25:24,480 --> 00:25:28,320
Speaker 2: MacBooks are typically very expensive relative to a much broader

471
00:25:28,440 --> 00:25:32,440
Speaker 2: range of available Windows or other operating system based PCs.

472
00:25:32,640 --> 00:25:34,359
Speaker 2: I think there's a place to start tell us about

473
00:25:34,359 --> 00:25:37,679
Speaker 2: what we know from the reporting about a new cheaper MacBook.

474
00:25:38,240 --> 00:25:40,720
Speaker 11: That's right, and thanks for having me. Yeah, it's really interesting.

475
00:25:40,800 --> 00:25:43,360
Speaker 11: This would be a pretty big departure from what we've

476
00:25:43,400 --> 00:25:47,639
Speaker 11: seen from Apple before of the more premium standpoint with computers,

477
00:25:47,640 --> 00:25:49,480
Speaker 11: but this would bring it down to a lower end,

478
00:25:50,320 --> 00:25:52,880
Speaker 11: probably in the six hundred to eight hundred dollars range.

479
00:25:53,520 --> 00:25:57,520
Speaker 11: It would be more targeted towards students, small businesses. It

480
00:25:57,520 --> 00:26:00,600
Speaker 11: wouldn't be able to do everything. You be able to

481
00:26:00,600 --> 00:26:03,920
Speaker 11: surf the web, some documents, some light editing, and would

482
00:26:04,000 --> 00:26:06,159
Speaker 11: really open up the market for a lot of people

483
00:26:06,160 --> 00:26:08,480
Speaker 11: who might have an iPhone but aren't ready to make

484
00:26:08,520 --> 00:26:11,360
Speaker 11: that jump for some MacBooks start, you know, at nine

485
00:26:11,440 --> 00:26:12,959
Speaker 11: hundred and nine and nine dollars. To your point, these

486
00:26:13,000 --> 00:26:15,040
Speaker 11: are pretty expensive computers.

487
00:26:15,920 --> 00:26:19,000
Speaker 2: Do we know anything about the timeline for this, Samantha, Like,

488
00:26:19,160 --> 00:26:22,600
Speaker 2: is Apple going to surprise us with this this year

489
00:26:22,880 --> 00:26:24,400
Speaker 2: or when do we expect to hear about it.

490
00:26:25,119 --> 00:26:28,480
Speaker 11: We're expecting it soon, but it's not eminent, so it's

491
00:26:28,520 --> 00:26:32,159
Speaker 11: in development. It's already in production, So we're thinking the

492
00:26:32,200 --> 00:26:36,200
Speaker 11: first half of next year, probably in the spring, maybe

493
00:26:36,680 --> 00:26:38,720
Speaker 11: somewhere between maybe March and June.

494
00:26:40,119 --> 00:26:42,760
Speaker 2: What has Apple done to you know, Like sometimes I

495
00:26:42,840 --> 00:26:45,720
Speaker 2: reflect about how Apple does something in the iPhone, or

496
00:26:45,760 --> 00:26:47,720
Speaker 2: it might do it in the wearables category or even

497
00:26:47,760 --> 00:26:49,439
Speaker 2: the iPad, and then it will say, how do we

498
00:26:49,480 --> 00:26:53,000
Speaker 2: apply that to a different category like MacBook. Is there

499
00:26:53,040 --> 00:26:56,199
Speaker 2: any reporting on like how there's a technology transfer that

500
00:26:56,240 --> 00:26:58,480
Speaker 2: they have got the cost down or are they going

501
00:26:58,520 --> 00:27:01,320
Speaker 2: to the playbook that they've done a base version iPhone

502
00:27:01,359 --> 00:27:05,360
Speaker 2: took a long time to get after having many premium models.

503
00:27:05,640 --> 00:27:08,720
Speaker 11: Yeah, it's interesting you say that. So my colleague Mark

504
00:27:08,720 --> 00:27:11,960
Speaker 11: German is reporting that some of the components would obviously

505
00:27:12,000 --> 00:27:15,320
Speaker 11: be a lot cheaper, making the price go down. But

506
00:27:15,400 --> 00:27:19,000
Speaker 11: they might use an iPhone chip, which is very advanced

507
00:27:19,000 --> 00:27:21,680
Speaker 11: at this point and exceeds some that we're seeing in

508
00:27:21,760 --> 00:27:24,560
Speaker 11: the earlier m chip center in some of the MacBooks.

509
00:27:24,600 --> 00:27:27,200
Speaker 11: So they would be able to take an iPhone chip,

510
00:27:27,240 --> 00:27:30,000
Speaker 11: put it into a device and really open it up there.

511
00:27:30,240 --> 00:27:32,879
Speaker 11: Also in other ways, you know, people might not need,

512
00:27:33,040 --> 00:27:36,359
Speaker 11: you know, certain features, but they are still looking for

513
00:27:36,480 --> 00:27:39,920
Speaker 11: battery life in some cases they're using an iPad a

514
00:27:40,720 --> 00:27:44,120
Speaker 11: with an external keyboard, but that really increases the price too.

515
00:27:44,359 --> 00:27:46,520
Speaker 11: This would be able to take everything, boil it down

516
00:27:46,560 --> 00:27:49,640
Speaker 11: and give people perhaps an entry point into the ecosystem

517
00:27:49,680 --> 00:27:51,399
Speaker 11: that they haven't been able to enter before.

518
00:27:52,359 --> 00:27:55,320
Speaker 2: I should say that an Apple spokesperson declines a comment

519
00:27:55,359 --> 00:27:58,080
Speaker 2: on our reporting. Now that's out the way, we should

520
00:27:58,080 --> 00:28:00,720
Speaker 2: probably acknowledge the other side of the competation, which is

521
00:28:00,760 --> 00:28:05,840
Speaker 2: the Chromebook and other laptop piecs. They are providing more

522
00:28:05,840 --> 00:28:08,600
Speaker 2: competition to Apple exactly.

523
00:28:08,680 --> 00:28:11,359
Speaker 11: Yeah, so there's been a lot of success around the

524
00:28:11,480 --> 00:28:14,200
Speaker 11: chromebooks for Google. I mean a lot of schools have

525
00:28:14,760 --> 00:28:18,040
Speaker 11: students using these devices. Of course you have Dell and

526
00:28:18,240 --> 00:28:21,040
Speaker 11: HP of major players as well, a lot of people

527
00:28:21,080 --> 00:28:23,600
Speaker 11: who can't afford a premium device will go to these

528
00:28:24,480 --> 00:28:29,040
Speaker 11: very strong products. So it definitely will you have a

529
00:28:29,080 --> 00:28:33,680
Speaker 11: new player involved, and it'll really increase competition. We saw

530
00:28:33,720 --> 00:28:38,000
Speaker 11: some dips yesterday as far as stock with those related

531
00:28:38,040 --> 00:28:39,800
Speaker 11: companies as well.

532
00:28:39,920 --> 00:28:43,200
Speaker 2: Bloomberg Samantha Kelly with the original reporting, Thank you very much.

533
00:28:50,200 --> 00:28:53,640
Speaker 2: Tesla shares are pushing higher ahead of tomorrow's big shareholder meeting,

534
00:28:53,760 --> 00:28:57,080
Speaker 2: where the spotlight will be on Elon Musk's proposed one

535
00:28:57,240 --> 00:29:02,280
Speaker 2: trillion dollar compensation plan and Shane Goodwin, executive director for

536
00:29:02,440 --> 00:29:06,680
Speaker 2: SMU Corporate Governance Initiative. Shane was a governance advisor to

537
00:29:06,800 --> 00:29:10,920
Speaker 2: the Special Committee, engaged to counsel them on corporate governance matters,

538
00:29:10,960 --> 00:29:15,080
Speaker 2: including satisfaction of fiduciary duties under Texas law when that

539
00:29:15,120 --> 00:29:19,040
Speaker 2: special Committee of two on Tesla's board put the package together. Shane,

540
00:29:19,040 --> 00:29:21,120
Speaker 2: welcome back to Bloomberg Tech. I want to start by

541
00:29:21,240 --> 00:29:24,600
Speaker 2: just clarifying some things for our audience. Now that the

542
00:29:24,640 --> 00:29:28,160
Speaker 2: proxy's filed and the proposed compensation plan is out there,

543
00:29:28,400 --> 00:29:31,440
Speaker 2: have you continued to be engaged with Tesla's Special Committee

544
00:29:31,520 --> 00:29:33,960
Speaker 2: or was that work finished Now.

545
00:29:34,000 --> 00:29:37,680
Speaker 12: We've still been very actively involved with the Special Committee

546
00:29:37,680 --> 00:29:40,400
Speaker 12: throughout this whole process. Obviously that was just the start

547
00:29:40,440 --> 00:29:43,520
Speaker 12: of it to kind of work with them, but we've

548
00:29:43,520 --> 00:29:46,560
Speaker 12: been we're working with them ongoing, and they've been engaged.

549
00:29:46,200 --> 00:29:49,200
Speaker 9: With all their advisors and legal prisoners along the way.

550
00:29:50,000 --> 00:29:53,120
Speaker 2: And since the proxy was filed and shareholders became aware

551
00:29:53,160 --> 00:29:57,720
Speaker 2: of the terms of the proposed compensation agreement, what is

552
00:29:57,760 --> 00:30:00,120
Speaker 2: it specifically that you have been talking to the Special

553
00:30:00,160 --> 00:30:01,560
Speaker 2: Committee and the board about.

554
00:30:02,640 --> 00:30:05,360
Speaker 12: Well, the issue is that most people see every single day,

555
00:30:05,400 --> 00:30:07,400
Speaker 12: that a lot of the headlines that come up, and

556
00:30:07,440 --> 00:30:11,080
Speaker 12: then how can we proactively really address those And more importantly,

557
00:30:11,080 --> 00:30:13,320
Speaker 12: it's just really can make sure that it's clear.

558
00:30:13,400 --> 00:30:16,000
Speaker 9: Obviously, as your viewers certainly saw.

559
00:30:15,880 --> 00:30:20,600
Speaker 12: The proxy advisors came out and actually commented on the

560
00:30:20,640 --> 00:30:23,480
Speaker 12: plan and some other aspects as well, and then we

561
00:30:23,560 --> 00:30:26,920
Speaker 12: just wanted to make sure that the shareholders, not the

562
00:30:26,920 --> 00:30:30,840
Speaker 12: proxy advisors, were very fully informed about what the plan

563
00:30:31,120 --> 00:30:34,680
Speaker 12: is and why this is different from what the DSS

564
00:30:34,720 --> 00:30:36,440
Speaker 12: from Glass Lewis is really reviewing.

565
00:30:37,480 --> 00:30:41,280
Speaker 2: So the biggest headline of this week is that Norway's

566
00:30:41,840 --> 00:30:45,760
Speaker 2: Sovereign Wealth Fund came out and voted no against the

567
00:30:45,800 --> 00:30:49,240
Speaker 2: proposed pay package. Not an advisory but an actual shareholder,

568
00:30:49,240 --> 00:30:53,120
Speaker 2: I believe Tesla's ninth biggest shareholder, and their argument was

569
00:30:53,200 --> 00:30:57,240
Speaker 2: very simple that they appreciated the significant value that mister

570
00:30:57,320 --> 00:31:01,479
Speaker 2: Musk has created, but argue that this this proposal, the

571
00:31:01,520 --> 00:31:04,600
Speaker 2: total size of the award is too great and like

572
00:31:04,720 --> 00:31:08,560
Speaker 2: the advisory services, they're worried about dilution. Could you respond

573
00:31:08,560 --> 00:31:09,760
Speaker 2: to that dilution part?

574
00:31:10,960 --> 00:31:14,800
Speaker 12: Yeah, well, first let me just address obviously, they also

575
00:31:15,120 --> 00:31:18,840
Speaker 12: oppose the pay plan on the ratification last year as well,

576
00:31:19,360 --> 00:31:22,480
Speaker 12: So for me it was a little hard to understand

577
00:31:22,560 --> 00:31:25,320
Speaker 12: kind of the Rederck versus the reality because they've been

578
00:31:25,320 --> 00:31:28,600
Speaker 12: a shareholder in Tesla since twenty eleven, so right after

579
00:31:28,640 --> 00:31:31,360
Speaker 12: the IPO they had a very small position, and they've

580
00:31:31,400 --> 00:31:34,479
Speaker 12: actually continued to build that position to where they are today.

581
00:31:34,960 --> 00:31:38,760
Speaker 12: So although they may have some concerns, they've enjoyed the

582
00:31:38,760 --> 00:31:41,440
Speaker 12: benefit of a nearly a forty thousand percent increase in

583
00:31:41,480 --> 00:31:45,120
Speaker 12: their share value during that particular time and constantly adding

584
00:31:45,400 --> 00:31:49,560
Speaker 12: to their position, so they're obviously willing to enjoy the

585
00:31:49,560 --> 00:31:52,800
Speaker 12: benefits of that. You know, with respect to the dilution,

586
00:31:52,920 --> 00:31:56,120
Speaker 12: it's been very clear about what the plan was, and

587
00:31:56,280 --> 00:31:58,280
Speaker 12: I know we talked about this last time ED, which

588
00:31:58,400 --> 00:32:01,120
Speaker 12: was when the Special committe Robin.

589
00:32:00,880 --> 00:32:05,600
Speaker 13: Denholm and Kathleen Wilson Thompson sat down with Elon to

590
00:32:05,680 --> 00:32:08,120
Speaker 13: understand not only his vision for Master Plant four but

591
00:32:08,160 --> 00:32:11,160
Speaker 13: obviously what he wanted to would accomplish. And Elon has

592
00:32:11,200 --> 00:32:14,440
Speaker 13: been very clear about this and obviously the chair as well,

593
00:32:14,480 --> 00:32:16,400
Speaker 13: which is he wanted to make sure he has enough

594
00:32:16,840 --> 00:32:20,120
Speaker 13: voting influence and that number was around twenty five percent

595
00:32:20,800 --> 00:32:24,560
Speaker 13: that would matter for him. This has been discussed as well,

596
00:32:24,640 --> 00:32:29,080
Speaker 13: which is the committee reviewed numerous ways of finding a

597
00:32:29,080 --> 00:32:33,560
Speaker 13: way to actually accomplish the voting and decoupling the economics,

598
00:32:34,000 --> 00:32:37,520
Speaker 13: and unfortunately, under current exchange rules that we have today

599
00:32:37,520 --> 00:32:40,719
Speaker 13: with either EEno Navdak any ways, he has a similar rules.

600
00:32:41,240 --> 00:32:44,640
Speaker 13: You can't go and do a high vote or dual class.

601
00:32:44,360 --> 00:32:48,720
Speaker 9: Listing once you've been listed in the exchange, Shane.

602
00:32:48,760 --> 00:32:52,680
Speaker 2: We've also spoken to Tesla's board chair, Robin Denholm subsequently,

603
00:32:52,720 --> 00:32:55,360
Speaker 2: since you're on the program right and there is an

604
00:32:55,400 --> 00:32:58,560
Speaker 2: acknowledgment that there is a very real risk that if

605
00:32:58,560 --> 00:33:00,880
Speaker 2: this is a no vote in the end and Elon

606
00:33:01,000 --> 00:33:04,920
Speaker 2: Musk either leaves Tesla, or he pays back his activities

607
00:33:05,200 --> 00:33:08,200
Speaker 2: in a different role, or he focuses more attention elsewhere.

608
00:33:08,680 --> 00:33:11,280
Speaker 2: You are privy to these conversations. You've just told us

609
00:33:11,320 --> 00:33:15,920
Speaker 2: that what is the plan B, what is the I

610
00:33:15,920 --> 00:33:18,680
Speaker 2: guess mitigation of key man risk in the event that

611
00:33:18,720 --> 00:33:20,000
Speaker 2: you don't secure the votes?

612
00:33:21,280 --> 00:33:21,800
Speaker 9: Yeah, I don't know.

613
00:33:22,040 --> 00:33:25,280
Speaker 12: Robin has addressed this specifically with both you and Carolina

614
00:33:25,280 --> 00:33:28,680
Speaker 12: as well, you know, quite frankly, and this is really

615
00:33:28,680 --> 00:33:30,640
Speaker 12: what I classify really as a kind of a super

616
00:33:30,640 --> 00:33:33,080
Speaker 12: Bowl performance that we're doing right now, we're focused on

617
00:33:33,200 --> 00:33:36,880
Speaker 12: winning the game and not looking at what happens if

618
00:33:36,920 --> 00:33:40,240
Speaker 12: we lose. I actually do believe that the shareholders are

619
00:33:40,240 --> 00:33:42,440
Speaker 12: going to come out in a very strong way tomorrow

620
00:33:43,320 --> 00:33:46,360
Speaker 12: and really support not only the plan, but the directors

621
00:33:46,400 --> 00:33:49,160
Speaker 12: were obviously a phnomination and all the proposals that are

622
00:33:49,360 --> 00:33:51,440
Speaker 12: put forth, and I think a lot of that is

623
00:33:51,480 --> 00:33:53,040
Speaker 12: already out there, so I don't think there's really a

624
00:33:53,080 --> 00:33:54,960
Speaker 12: need to focus on Plan B.

625
00:33:55,680 --> 00:33:57,960
Speaker 9: I can assure you that they're a very diligent board.

626
00:33:57,960 --> 00:34:00,640
Speaker 12: They thought through these things, but I think everyone's very

627
00:34:00,640 --> 00:34:02,000
Speaker 12: focused on winning.

628
00:34:02,880 --> 00:34:04,880
Speaker 2: We continue to get the same question for you and

629
00:34:04,960 --> 00:34:07,120
Speaker 2: for the board, which is this is the first vote

630
00:34:07,200 --> 00:34:10,439
Speaker 2: under Texas law. What do shareholders need to know that's

631
00:34:10,480 --> 00:34:13,719
Speaker 2: different under Texas law from what they voted previously under

632
00:34:13,760 --> 00:34:14,359
Speaker 2: Delaware law.

633
00:34:15,440 --> 00:34:15,680
Speaker 9: Yeah.

634
00:34:15,840 --> 00:34:17,920
Speaker 12: I would say the biggest one, if it comes up,

635
00:34:18,000 --> 00:34:21,799
Speaker 12: is that you know, insiders, particularly in a transaction like this,

636
00:34:21,960 --> 00:34:25,720
Speaker 12: are allowed to vote their shares in this particular election,

637
00:34:25,800 --> 00:34:30,040
Speaker 12: so you know Elon's shares will definitely be counted as

638
00:34:30,360 --> 00:34:34,520
Speaker 12: and included in part of this process, whereas previously, as

639
00:34:34,560 --> 00:34:36,440
Speaker 12: it was discussed within Delaware, it's not.

640
00:34:36,560 --> 00:34:38,840
Speaker 9: I'd say that's really the fundamental big change.

641
00:34:39,600 --> 00:34:42,680
Speaker 12: But quite frankly, if everyone recalls the previous plan of

642
00:34:42,719 --> 00:34:46,520
Speaker 12: a twenty eighteen plan, both originally in twenty eighteen but

643
00:34:46,600 --> 00:34:49,560
Speaker 12: also in the ratification in twenty twenty four, it had

644
00:34:49,560 --> 00:34:52,920
Speaker 12: over seventy plus percent shareholder approval, which did not include

645
00:34:53,120 --> 00:34:55,960
Speaker 12: elons in that particular time. So I do think we're

646
00:34:55,960 --> 00:34:58,160
Speaker 12: going to have a lot more of a support here

647
00:34:58,239 --> 00:35:01,319
Speaker 12: than some of the headlines reacting to right now.

648
00:35:01,520 --> 00:35:03,400
Speaker 9: But that is that is really one of the bigger

649
00:35:03,480 --> 00:35:03,960
Speaker 9: changes here.

650
00:35:03,960 --> 00:35:09,480
Speaker 2: For textas Shane Goodwin, executive director SMU Corporate Governments Initiative

651
00:35:09,920 --> 00:35:12,960
Speaker 2: and an advisor to the special Committity on Tesla's board

652
00:35:13,200 --> 00:35:15,600
Speaker 2: that put together the proposed pay package, thank you very much.

653
00:35:15,640 --> 00:35:18,560
Speaker 2: By coming up, we're going to talk to an investor, Vinodekostler,

654
00:35:18,840 --> 00:35:23,720
Speaker 2: and also David Zoo, CEO of startup revo ai about

655
00:35:23,920 --> 00:35:28,040
Speaker 2: the go to market platform's debut and it's funding. That's next.

656
00:35:28,280 --> 00:35:46,759
Speaker 2: This is Bimbo tech Ai. Startup revo is emerging from

657
00:35:46,840 --> 00:35:49,720
Speaker 2: self with the aim of unifying the steps and data

658
00:35:49,840 --> 00:35:53,800
Speaker 2: necessary for businesses to develop and execute go to market strategies.

659
00:35:53,840 --> 00:35:57,239
Speaker 2: The company has eighty million dollars from a combination seed

660
00:35:57,320 --> 00:36:00,600
Speaker 2: and Series A funding round co led by the Benches

661
00:36:00,640 --> 00:36:04,920
Speaker 2: and Kline Perkins. Revo CEO David Zoo and investor Fino

662
00:36:05,040 --> 00:36:07,360
Speaker 2: Kosler are with us now. David, I would love to

663
00:36:07,360 --> 00:36:10,880
Speaker 2: start with you. You're trying to tackle the concept that

664
00:36:10,960 --> 00:36:15,680
Speaker 2: you have labeled the Frankin stack. Even though the term

665
00:36:15,760 --> 00:36:18,520
Speaker 2: is new to me, the concept is something that's been

666
00:36:18,520 --> 00:36:21,120
Speaker 2: discussed on this program a lot. Just to explain what

667
00:36:21,200 --> 00:36:22,720
Speaker 2: Revo wants to achieve here.

668
00:36:23,800 --> 00:36:26,520
Speaker 14: Sure, well, first off, thanks for having me. It's a

669
00:36:26,520 --> 00:36:29,239
Speaker 14: big day for us. Look, AI is the biggest shift

670
00:36:29,280 --> 00:36:32,920
Speaker 14: in enterprise software since the cloud, but the reality is,

671
00:36:33,000 --> 00:36:35,319
Speaker 14: revenue teams are still stuck in, like you said, what

672
00:36:35,360 --> 00:36:37,920
Speaker 14: we call the Franklin stack, which is a dozen different

673
00:36:37,920 --> 00:36:41,200
Speaker 14: tools that don't really talk to each other, causing sellers

674
00:36:41,239 --> 00:36:44,040
Speaker 14: to waste over seventy percent of their time wrangling software

675
00:36:44,280 --> 00:36:46,840
Speaker 14: instead of talking to their customers, and that's really painful.

676
00:36:47,600 --> 00:36:51,520
Speaker 14: Revo is looking to fix that via one unified revenue

677
00:36:51,560 --> 00:36:54,200
Speaker 14: operating system built from the ground up with AI at

678
00:36:54,200 --> 00:36:57,160
Speaker 14: its core, and with this eighty million raise, we're scaling

679
00:36:57,239 --> 00:36:59,920
Speaker 14: quickly to help all companies win in the age of AI.

680
00:37:01,360 --> 00:37:03,760
Speaker 2: Vinod I was talking with my team this morning about

681
00:37:04,040 --> 00:37:07,120
Speaker 2: the structure of this round, and so it's basically a

682
00:37:07,160 --> 00:37:10,799
Speaker 2: combined seed in Series A and Revo is coming out

683
00:37:10,840 --> 00:37:13,680
Speaker 2: and kind of announcing itself to the world. Would you

684
00:37:14,080 --> 00:37:16,239
Speaker 2: kind of give us the backstory? You know, you are

685
00:37:16,280 --> 00:37:19,680
Speaker 2: an experienced investor in the world of technology. When this

686
00:37:19,719 --> 00:37:22,520
Speaker 2: crossed your desk, how did you know that you needed

687
00:37:22,520 --> 00:37:25,120
Speaker 2: to get involved and how did you determine at this

688
00:37:25,320 --> 00:37:28,920
Speaker 2: very early stage the potential that that Revo had.

689
00:37:30,920 --> 00:37:36,239
Speaker 15: The opportunity didn't actually cross our desk in a traditional way.

690
00:37:36,440 --> 00:37:39,520
Speaker 15: We've known David for a long time from door dash

691
00:37:39,600 --> 00:37:44,360
Speaker 15: to open Door to open Store Sorry, and now Revo.

692
00:37:45,120 --> 00:37:48,759
Speaker 15: We've been incubating ventures with him. My partner Samira has

693
00:37:48,800 --> 00:37:54,960
Speaker 15: worked closely with him on Revo, and we cooked up

694
00:37:55,000 --> 00:37:59,120
Speaker 15: the concept, rainstormed it and talked it was important enough

695
00:37:59,160 --> 00:38:02,440
Speaker 15: to do in the age of here, I think most

696
00:38:02,600 --> 00:38:06,960
Speaker 15: applications and application stacks need to be retarded. And this

697
00:38:07,120 --> 00:38:10,239
Speaker 15: is David just a superstar armed to know, so it

698
00:38:10,400 --> 00:38:13,280
Speaker 15: was pretty easy.

699
00:38:13,440 --> 00:38:16,759
Speaker 2: You know, is this an example of you investing in

700
00:38:16,800 --> 00:38:21,000
Speaker 2: the known quantity founder then rather than the idea?

701
00:38:21,640 --> 00:38:27,719
Speaker 15: Absolutely, you mainly invested the idea. Wasn't clear that was

702
00:38:27,800 --> 00:38:30,759
Speaker 15: a year and a half or two years ago. But

703
00:38:30,880 --> 00:38:32,040
Speaker 15: the founder was very.

704
00:38:31,840 --> 00:38:37,160
Speaker 2: Clear, David, I'm trying to track the growth that you've had.

705
00:38:37,200 --> 00:38:40,680
Speaker 2: So spring of twenty twenty four, you kind of come

706
00:38:40,719 --> 00:38:43,839
Speaker 2: up with the idea, I guess incorporated business and you've

707
00:38:43,960 --> 00:38:47,320
Speaker 2: hired I guess aggressively. You know you're sub one hundred

708
00:38:47,360 --> 00:38:50,600
Speaker 2: people still, but you've basically gone to companies that are

709
00:38:50,600 --> 00:38:53,800
Speaker 2: well known globally, not just here in the valley, and

710
00:38:54,160 --> 00:38:55,480
Speaker 2: taken the best people you can.

711
00:38:55,560 --> 00:39:01,279
Speaker 14: What was that like, Well, yeah, that's you're spot on there.

712
00:39:01,840 --> 00:39:04,880
Speaker 14: The company you build taking a page out of Vanotes book,

713
00:39:04,880 --> 00:39:07,399
Speaker 14: But the company you build is the team you build

714
00:39:07,400 --> 00:39:09,439
Speaker 14: as a company you build, not the plans you make.

715
00:39:09,840 --> 00:39:12,600
Speaker 14: And when we thought about tackling the space of unifying

716
00:39:12,640 --> 00:39:16,840
Speaker 14: all of go to market tech in one system spanning marketing, sales,

717
00:39:16,840 --> 00:39:19,480
Speaker 14: and success, we really needed to make sure that we

718
00:39:19,520 --> 00:39:22,680
Speaker 14: had the talent density both from a technical perspective but

719
00:39:22,760 --> 00:39:25,360
Speaker 14: also from a go to market to really bring together

720
00:39:25,560 --> 00:39:29,560
Speaker 14: the combination of the depth of domain knowledge plus the

721
00:39:29,719 --> 00:39:32,439
Speaker 14: ability to access the first party data to really pull

722
00:39:32,440 --> 00:39:35,920
Speaker 14: this vision off. So global talent is necessary for us

723
00:39:35,960 --> 00:39:38,719
Speaker 14: to make this a reality.

724
00:39:38,960 --> 00:39:41,480
Speaker 2: David, what else do you need the eighty million dollars.

725
00:39:41,120 --> 00:39:47,279
Speaker 14: For Yeah, well it's over the next few months and

726
00:39:47,400 --> 00:39:48,400
Speaker 14: quarters and years.

727
00:39:48,840 --> 00:39:49,799
Speaker 2: Our vision is clear.

728
00:39:50,520 --> 00:39:53,880
Speaker 14: We need a continue accelerating our product role map to

729
00:39:53,960 --> 00:39:57,480
Speaker 14: build out both the breadth of the surface area to

730
00:39:57,600 --> 00:40:00,360
Speaker 14: serve our customers, but also making sure that every single

731
00:40:00,360 --> 00:40:04,799
Speaker 14: capability is the best possible from a death perspective. But

732
00:40:04,840 --> 00:40:08,160
Speaker 14: more importantly, in the age of AI, context matters, and

733
00:40:08,200 --> 00:40:10,399
Speaker 14: it's very important for us to double down on making

734
00:40:10,440 --> 00:40:13,480
Speaker 14: sure that our AI operating system is able to work

735
00:40:13,840 --> 00:40:17,600
Speaker 14: seamlessly across every single one of these modules. Capabilities job

736
00:40:17,640 --> 00:40:20,680
Speaker 14: to be done, so we're not replicating another Franken Stack

737
00:40:20,960 --> 00:40:23,320
Speaker 14: for the future world. So that's what we're going to

738
00:40:23,440 --> 00:40:25,600
Speaker 14: use the proceeds to do.

739
00:40:27,360 --> 00:40:29,440
Speaker 2: Vinod I go back to you with the concept of

740
00:40:29,480 --> 00:40:34,560
Speaker 2: the Franken stack. You know you're invested everywhere. One of

741
00:40:34,600 --> 00:40:37,680
Speaker 2: the first checks into open AI. The world has changed

742
00:40:37,719 --> 00:40:41,480
Speaker 2: a lot since then. You know, we had yesterday Shrida

743
00:40:41,560 --> 00:40:45,080
Speaker 2: from Snowflake on the program talking about the problems right

744
00:40:45,120 --> 00:40:47,680
Speaker 2: now and in the data layer. What do you make

745
00:40:47,719 --> 00:40:50,239
Speaker 2: of the Franken stack. Is that a real thing or

746
00:40:50,280 --> 00:40:52,680
Speaker 2: this is just a marketing opportunity around this round.

747
00:40:53,719 --> 00:40:56,800
Speaker 15: No, I think it's a real thing. Push AI enables

748
00:40:56,880 --> 00:40:59,480
Speaker 15: each startup to do a lot more than it could do.

749
00:41:00,080 --> 00:41:03,359
Speaker 15: Only engineers can do the work of sixty engineers if

750
00:41:03,400 --> 00:41:08,239
Speaker 15: you use the productivity tools AI enables. But more than that,

751
00:41:08,480 --> 00:41:12,120
Speaker 15: the user experience can be dramatically different with the help

752
00:41:12,160 --> 00:41:15,960
Speaker 15: of AI. As I like to say, in the old

753
00:41:16,040 --> 00:41:20,319
Speaker 15: world of applications, users had to learn an application, and

754
00:41:20,400 --> 00:41:23,720
Speaker 15: they learned to each vertical stat. In the new world

755
00:41:23,760 --> 00:41:27,759
Speaker 15: of AI, the application learns the human and responds the

756
00:41:27,760 --> 00:41:31,160
Speaker 15: way it shift. It's my favorite way to think about

757
00:41:31,160 --> 00:41:33,200
Speaker 15: the transition AI makes possible.

758
00:41:33,280 --> 00:41:34,040
Speaker 9: You don't have to.

759
00:41:34,000 --> 00:41:39,239
Speaker 15: Be trained on an application like SAP or hubstat. The

760
00:41:39,280 --> 00:41:43,400
Speaker 15: application gets to know you and other humans on your team,

761
00:41:43,719 --> 00:41:47,480
Speaker 15: and so it facilitates not only the function, but also

762
00:41:47,680 --> 00:41:54,320
Speaker 15: workflow across people and across applications. I think pretty important

763
00:41:54,360 --> 00:41:55,480
Speaker 15: shift in software.

764
00:41:56,840 --> 00:41:58,800
Speaker 2: It's both you. I kind of like to end the

765
00:41:58,840 --> 00:42:01,439
Speaker 2: conversation by going a little bit bigger on the world

766
00:42:01,440 --> 00:42:03,360
Speaker 2: that we're in right now. You know, David, if you

767
00:42:03,360 --> 00:42:05,920
Speaker 2: could reflect on what it was like doing this round.

768
00:42:06,880 --> 00:42:09,720
Speaker 2: There is a lot of energy behind AI right now,

769
00:42:10,040 --> 00:42:12,080
Speaker 2: but at the other end of the spectrum there is

770
00:42:12,160 --> 00:42:15,680
Speaker 2: valuation concern. You know, there's no difficulty in open AI

771
00:42:15,760 --> 00:42:19,759
Speaker 2: or anthropic those kinds of frontier labs gaining capital, But

772
00:42:20,120 --> 00:42:21,759
Speaker 2: there is a lot going on right now. Would you

773
00:42:21,840 --> 00:42:23,839
Speaker 2: just reflect on what the last few weeks has been

774
00:42:23,920 --> 00:42:25,160
Speaker 2: like in trying to close this.

775
00:42:26,520 --> 00:42:30,400
Speaker 14: Well, you know, the fundamental difference is clear with our approach.

776
00:42:30,800 --> 00:42:34,560
Speaker 14: We're AI native and purpose built for revenue teams, and

777
00:42:34,640 --> 00:42:36,480
Speaker 14: so you know when you talk about the old players

778
00:42:36,520 --> 00:42:39,040
Speaker 14: that are trying to built AI onto legacy stack, it

779
00:42:39,120 --> 00:42:42,800
Speaker 14: just doesn't work. What we're building with Revo is akin

780
00:42:42,920 --> 00:42:46,439
Speaker 14: to how Tesla build its cars vertically integrated with AI

781
00:42:46,480 --> 00:42:49,200
Speaker 14: at its core. This way, our AI is able to

782
00:42:49,440 --> 00:42:54,880
Speaker 14: see and act across the full customer journey. So the

783
00:42:54,920 --> 00:42:57,040
Speaker 14: old players are held back by their past, and the

784
00:42:57,080 --> 00:42:59,840
Speaker 14: new players, to your point, you know, don't have the

785
00:43:00,200 --> 00:43:03,080
Speaker 14: of the main knowledge nor the access to the full

786
00:43:03,160 --> 00:43:05,399
Speaker 14: suite of first party data to pull this vision off.

787
00:43:05,640 --> 00:43:08,480
Speaker 14: So Revo's building with both, and yes it's hard, but

788
00:43:08,719 --> 00:43:10,880
Speaker 14: that's really what makes it defensible and worth doing.

789
00:43:12,280 --> 00:43:14,760
Speaker 2: You know, you know you're co leading this round with

790
00:43:14,520 --> 00:43:19,040
Speaker 2: your friends at Kina Perkins. Again, the same question, like

791
00:43:19,080 --> 00:43:21,600
Speaker 2: what does the environment look like to you? Right now?

792
00:43:21,920 --> 00:43:25,920
Speaker 2: This is a very sizable debut round you had the

793
00:43:25,960 --> 00:43:28,680
Speaker 2: conviction to do that. Well.

794
00:43:29,320 --> 00:43:31,399
Speaker 15: It was a while ago we did the seed round

795
00:43:31,480 --> 00:43:34,640
Speaker 15: of ten million, there wasn't announced, and now we just

796
00:43:35,040 --> 00:43:39,120
Speaker 15: participated in the seventy million dollar round. Obviously we think

797
00:43:39,200 --> 00:43:42,920
Speaker 15: highly of the team, but I think it's the magnitude

798
00:43:42,960 --> 00:43:46,680
Speaker 15: of the opportunity this opens up for AI native companies.

799
00:43:47,239 --> 00:43:51,160
Speaker 15: I like to say most valuations won't hold up in

800
00:43:51,200 --> 00:43:54,440
Speaker 15: the AI space, but the ones that are really high

801
00:43:54,560 --> 00:44:00,359
Speaker 15: quality companies will return disproportionate returns. In twenty eight Keen

802
00:44:00,480 --> 00:44:03,560
Speaker 15: people said to me a billion dollar valuation for Open

803
00:44:03,600 --> 00:44:07,640
Speaker 15: the Air was too high. Then they said twenty six

804
00:44:07,719 --> 00:44:10,400
Speaker 15: billion was too high, and then one hundred billion, then

805
00:44:10,480 --> 00:44:13,400
Speaker 15: three hundred billion, and then five hundred billion.

806
00:44:13,120 --> 00:44:14,200
Speaker 2: Were all too high.

807
00:44:14,719 --> 00:44:18,960
Speaker 15: So a small percentage of the companies I suspect, much

808
00:44:19,080 --> 00:44:23,560
Speaker 15: less than five percent, will actually do extremely well and

809
00:44:23,920 --> 00:44:29,600
Speaker 15: return ten fifty one hundred times stare money invested. Most

810
00:44:29,600 --> 00:44:32,319
Speaker 15: companies will still lose money, and I think that's why

811
00:44:32,360 --> 00:44:35,920
Speaker 15: you want to back quality founders like David. David just

812
00:44:35,920 --> 00:44:38,600
Speaker 15: superstar right back him in almost anything he did.

813
00:44:40,840 --> 00:44:44,840
Speaker 2: David Zuocio Revo Ai Vino cost co founder Coast Adventures,

814
00:44:44,880 --> 00:44:47,080
Speaker 2: and as we just discussed, I let that round. Great

815
00:44:47,120 --> 00:44:49,000
Speaker 2: to have you both on the program. Frank you that

816
00:44:49,080 --> 00:44:52,000
Speaker 2: does it for this edition of Bloomberg Tag Earnings, but

817
00:44:52,080 --> 00:44:55,400
Speaker 2: also AI valuation concerns are driving this market right now

818
00:44:55,719 --> 00:44:58,000
Speaker 2: one way and the other. Has been a volatile session.

819
00:44:58,040 --> 00:45:00,360
Speaker 2: There was a lot to recap, in particular in the

820
00:45:00,400 --> 00:45:03,160
Speaker 2: case of AMD, so do so on the podcast. You

821
00:45:03,160 --> 00:45:06,000
Speaker 2: know exactly where to find it. This is Bloomberg Tech