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Speaker 1: From Mahard where Innovation, 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: I'm Caroline Heidel, Bloomberg's World headquarters in New York. Ed

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Speaker 3: Ludlow's off This is Bloomberg Technology coming up. We engage

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Speaker 3: the health of technology earnings with eighty percent of S

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Speaker 3: and P five companies out with results. And as Buffett

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Speaker 3: cuts his steak, we'll push your head to Apple's product

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Speaker 3: event as the company prepares to launch new iPads plus,

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Speaker 3: we speak to andrel founder.

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Speaker 4: Palmer Lucky as a company announces.

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Speaker 3: A brand new range of AI powered products. But first

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Speaker 3: let's check in on these markets and look, we have

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Speaker 3: a post fed feeling of well optimism in the markets

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Speaker 3: that feel so. We don't have an awful lot of

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Speaker 3: economic data on the table. We do have some significant

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Speaker 3: bondishuents ten yure yields holding steady. We're four point five

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Speaker 3: percent the nawstak managing to push up to six tens

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Speaker 3: ofven percent, notably seeing the S and P five hundred

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Speaker 3: breaking some of those technical levels of where we've seen

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Speaker 3: an average and trade over the last fifty days.

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Speaker 4: So there seems to be some boyant moves and risk

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Speaker 4: on attitude.

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Speaker 3: Not though in bitcoin, though crypto off by nine tens

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Speaker 3: of percent, we're seeing sixty three one hundred and fifty

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Speaker 3: five is currently where we trade.

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Speaker 4: Move it on though, and when it comes to encrypto.

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Speaker 3: Related news will be digging into what's happened.

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Speaker 4: With Robin Herd.

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Speaker 3: Of course, wells notice received SEC looking at particularly it's

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Speaker 3: crypto sales that it currently does up seven tens percent,

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Speaker 3: despite of course announcing that the SEC may well be

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Speaker 3: looking into its business. Apple down seven tens percent. This

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Speaker 3: is all post of course, the oracle of Omaha over

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Speaker 3: Warren Buffett saying, look, I'm pulling back on the steak

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Speaker 3: in Apple, even though he did shower its praise over

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Speaker 3: the business, really loving the iPhone product. But nevertheless, we

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Speaker 3: look ahead to new products, new iPads. Push ahead with

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Speaker 3: that in Mark German in a moment, but in Vidia

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Speaker 3: up two point six percent. I want to shine like

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Speaker 3: more broadly on some of each makers because we are

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Speaker 3: seeing a lot of movement higher the socks, for example

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Speaker 3: trading high and Vidia is still yet to report that

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Speaker 3: comes May twenty May twenty second. We also get arm

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Speaker 3: this week. There is still so much to be said

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Speaker 3: for earnings. The earning season well underway. Results from about

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Speaker 3: eighty percent of the S and P five hundred already

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Speaker 3: in technology communication services companies, they're beating profit estimates.

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Speaker 4: Roughly ninety percent of.

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Speaker 3: Teching communication services companies actually topped earnings estimates, according to

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Speaker 3: Day to combined by Bloomberg. When get all the statistics,

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Speaker 3: Bloomberg's jestmenton is with us and pleased to say, and

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Speaker 3: just more broadly, it feels as though when companies have

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Speaker 3: beat have they really outperformed? I mean, Apple was a

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Speaker 3: massive sigh of relief when we saw the stock rally,

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Speaker 3: but how has that been bearing up?

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Speaker 5: So you can actually see this function in Bigo, So

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Speaker 5: Gina Marrit Adams team ver in that function and you

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Speaker 5: can see basically on the equities there. So when you're

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Speaker 5: looking at how starks in aggregate from the S and

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Speaker 5: P five hundred have been performing in excess of the

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Speaker 5: broader index, they actually it's basically kind of appeals in

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Speaker 5: comparison to how they have been in prior quarters. But nonetheless,

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Speaker 5: because of Apple on Friday, when you see this now

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Speaker 5: the S and P five hundred since earning season basically

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Speaker 5: got into full swing with JP Morgan back on April twelfth.

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Speaker 5: Now it's up close to about one percent in that span.

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Speaker 5: It had been about lower than one percent prior to

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Speaker 5: Apple's earnings results. So now you're starting to see that

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Speaker 5: pick up a bit just on the back of obviously

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Speaker 5: these big tech bell weathers. But to your point, Caroline,

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Speaker 5: we still have Nvidia coming up.

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Speaker 4: On May twenty second, I know, and there was so

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Speaker 4: much optimism baked in.

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Speaker 3: What about those that have missed, I mean, they've been

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Speaker 3: punished hot, have they and have have been any themes

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Speaker 3: as to why they've missed.

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Speaker 5: Well, that's a great point too, because a lot of

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Speaker 5: that also has to do with more forward looking guidance.

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Speaker 5: And that's why because as we know, when you do

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Speaker 5: think about first quarter earnings results, that is more backward looking.

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Speaker 5: So when it comes to the guidance, that's where it

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Speaker 5: has been disappointing. And then, of course, because this is

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Speaker 5: a technology program, obviously a lot of traders and investors

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Speaker 5: want to know when those cost cutting efforts that have

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Speaker 5: really helped propel any sort of big tech company or

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Speaker 5: especially anything that is tied to that, especially as when

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Speaker 5: you think back to Meta at the end of twenty

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Speaker 5: twenty two when it started its first big job cuts

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Speaker 5: entranch there and then another one last spring. How much

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Speaker 5: longer can this continue? So if you look at the

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Speaker 5: bifunction though on a twelve month aggregate basis, seal site

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Speaker 5: analysts are still marking up their projections for technology companies

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Speaker 5: and growth companies too, But a lot of those laggards

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Speaker 5: like healthcare and utilities, those are actually starting.

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Speaker 3: To pick up too now maybe with the effect of AI.

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Speaker 3: Many wanted to just see that impact. How the industry

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Speaker 3: groups just lastly give us the sentence of whether companies

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Speaker 3: have already been rewarding shareholders, because that felt like why

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Speaker 3: a lot of the reason Apple popped it was because

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Speaker 3: we got a massive buyback was starting to see companies

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Speaker 3: give dividends. I mean, you triggered my memory with the

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Speaker 3: fact that Meta didn't this time, but they did in

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Speaker 3: the pre setting season.

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Speaker 5: That's always usually music to trader's ears there. But also

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Speaker 5: the big thing about buybacks is also when you look

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Speaker 5: at what's happening with Capex and reinvesting into those businesses,

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Speaker 5: so just beyond that, So that's something that investors want

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Speaker 5: to see more of as far as what are companies

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Speaker 5: doing to reinvest beyond just those buyback programs, But we

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Speaker 5: have seen a number of companies in a especially to

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Speaker 5: your point, Caroline, looking at Apple with that historic buyback announcement.

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Speaker 5: Of course it still has to execute those, but we

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Speaker 5: still have when you're thinking about what potential catalysts could

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Speaker 5: come for Apple. Obviously we know in early June we'll

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Speaker 5: have the Worldwide Developers Conference, but I know Mark German

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Speaker 5: from Bloomberg is coming up soon, so he's going to

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Speaker 5: talk about the big event tomorrow where potentially we could

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Speaker 5: can see some more new iPads that are coming out.

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Speaker 3: Caroline, let Mark loose at the moment of the HANJ

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Speaker 3: just meant and brilliant to have your round level what's

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Speaker 3: been happening in.

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Speaker 4: Terms of the earning season.

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Speaker 3: We actually want to get aroun investors take care as well.

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Speaker 3: Uncle Crawlford's with us executive vice president for Phodio manager

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Speaker 3: over at algia twenty five billion dollars NASA's under management,

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Speaker 3: and Uncle Apple actually one of your biggest holdings. You

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Speaker 3: have been cutting that a little bit across some of

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Speaker 3: your funds. Water Muffett doing the same thing. How have

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Speaker 3: you interpreted, for example, a company such as Apple's results

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Speaker 3: and ultimately the growth trajectory of a business like that.

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Speaker 6: Look, Apple is a consumer utility, and one of the

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Speaker 6: things about Apple has been that they has been slower

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Speaker 6: in adopting this AI cycle. So the hope is that

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Speaker 6: at some point they will catch up and they will

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Speaker 6: be a FEST follower, which we strongly believe that they will.

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Speaker 6: But in the near term, there are other companies that

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Speaker 6: are more immediately investing in and procuring AI type revenues

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Speaker 6: that is propelling growth.

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Speaker 4: Okay, let's talk through some of those names.

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Speaker 3: I mean, we've heard from Alphabet, from Amazon, from Meta,

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Speaker 3: all of them. The capec spend their making are they

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Speaker 3: building the reward in return for that investment?

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Speaker 6: From your perspective, absolutely, It's the number one thing that

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Speaker 6: we have been looking at through this earning season has

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Speaker 6: been capex and how these companies are spending their capex.

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Speaker 6: We wholeheartedly expected them to have a big CABEC CAPEX

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Speaker 6: number through twenty twenty four, and they're even talking about

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Speaker 6: twenty twenty five. And this to us is the leading

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Speaker 6: indicator of what's to come in AI because they wouldn't

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Speaker 6: be building this CAPEX unless they saw the demand trends.

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Speaker 6: I would remind you that during earning season, both Microsoft

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Speaker 6: and Amazon talked about how they were limited on capacity

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Speaker 6: of GPUs. So this again, I mean people keep asking

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Speaker 6: like the where is the application.

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Speaker 4: Someone is using those GPUs?

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Speaker 6: They're all used up already, the hundreds of millions that

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Speaker 6: have always been already been spent.

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Speaker 3: And of course benefits from the desire for GPUs. It's

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Speaker 3: going to be in video, right, I mean, is that

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Speaker 3: the number one play for you? Have you been looking

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Speaker 3: at well a MD or indeed looking at the design

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Speaker 3: element with M Yeah.

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Speaker 6: So I think a lot of boat boats are going

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Speaker 6: to rise over the next decade, and a lot of

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Speaker 6: boats are rising now. So it will it be a

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Speaker 6: winner take all market. It's not going to be a

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Speaker 6: winner take all market. There will be many different winners.

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Speaker 6: Nvidia is going to be the winner take most however,

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Speaker 6: and we are really excited about what Nvidia is doing

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Speaker 6: in terms of not only software development, but how they're

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Speaker 6: changing the network in order to make data centers more efficient.

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Speaker 6: So they're reaching out beyond just chips into the price

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Speaker 6: networking and software as well, so that sets up a

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Speaker 6: really great note for them and makes us very bullish

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Speaker 6: on Nvidia.

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Speaker 3: I mean, it's one of your number one holdings across

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Speaker 3: some of your largest funds. I note that you've also

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Speaker 3: been starting new funds and ETF in particular, trying to

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Speaker 3: execute on this AI theme. Can you talk us through

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Speaker 3: some of the names and perhaps why not automatically consider

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Speaker 3: the AI play that you've been adding to.

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Speaker 6: Yeah, so you know there's two companies in the industrial space,

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Speaker 6: Vertive and Quantu Services, both of which are you know,

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Speaker 6: they used to be relatively slow growth companies but are

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Speaker 6: now levered to the AI play. Vertive makes cooling systems

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Speaker 6: for data centers, and Quanta I actually I joke that

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Speaker 6: these are ditch diggers or their pool climbers, because they

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Speaker 6: effectively distribute or make the transmission for electricity.

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Speaker 4: Both of these.

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Speaker 6: Things are going to be to have radically changing competitive

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Speaker 6: dynamics in that, for example, for Quanta, we don't have

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Speaker 6: enough electricity, so we expect to see utility capex start

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Speaker 6: to rise incrementally over the next five to seven years,

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Speaker 6: all of which will service the people that implement the

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Speaker 6: transmission lines.

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Speaker 4: For Vertive, you have a.

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Speaker 6: Very changing dynamic on the cooling aspect of the data

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Speaker 6: center and vertive ends up being the net winner.

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Speaker 3: And God, that's really interesting because we're hearing again and

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Speaker 3: again that this is a worry for example of Sam

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Speaker 3: Altman been going around the Middle East in particular, worrying

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Speaker 3: that the key anxiety, the kid bottlenecks here are energy

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Speaker 3: and indeed access to GPU. That's why there's been so

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Speaker 3: much reporting of the fact that he's trying to build

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Speaker 3: up other chip makers. How have you been thinking about

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Speaker 3: ultimately that actually being the key bottleneck? Do you agree

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Speaker 3: that energy is going to be the real issue here,

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Speaker 3: limiting factor?

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Speaker 6: I think that technology is pretty amazing in that as

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Speaker 6: you forward, I mean, as we stand today, is energy

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Speaker 6: going to be a bottleneck?

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Speaker 4: It is.

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Speaker 6: However, as you move forward two three and four years,

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Speaker 6: the energy efficiency efforts that are occurring, not only at

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Speaker 6: the chip level but at the data center level are

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Speaker 6: quite significant, and we think that the technology on cooling

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Speaker 6: and electricity will keep up and not hamper.

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Speaker 4: The growth of the industry.

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Speaker 6: So, for example, if you look at the performance per

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Speaker 6: want of the B one hundred, which is Nvidia's newest chip,

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Speaker 6: it's actually significantly more efficient than the older generations, and

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Speaker 6: so as you move through time, I do believe that

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Speaker 6: on a performance per want basis, you end up getting

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Speaker 6: more efficiency than is currently baked in by the market.

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Speaker 4: What is the market getting?

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Speaker 3: Two wigsubun Do you believe any view that the hype

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Speaker 3: has made market capitalizations unsustainable in certain names?

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Speaker 6: I don't think the market is exuberant right now. And

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Speaker 6: and you know everyone always asks like, are we in

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Speaker 6: a bubble? Are we in an AI bubble? And I

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Speaker 6: would say it's much too early. This is very much

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Speaker 6: like you know, it's revolutionary in terms of what is

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Speaker 6: about to happen. So, you know, I was just look

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Speaker 6: at the valuations across across the mag seven this morning.

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Speaker 4: You look at Meta.

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Speaker 6: Meta currently trades at a ten percent discount to the

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Speaker 6: market on our twenty twenty five earnings. Actually it might

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Speaker 6: be a fifteen percent discount now that it's pulled back

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Speaker 6: so much. That to me, for UH, a company that

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Speaker 6: is going to change the way that we interact as

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Speaker 6: consumers with AI and how businesses interact with consumers is

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Speaker 6: not an egregious multiple. You know, you can go down

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Speaker 6: the list with Amazon. Amazon doesn't trade at that egregious

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Speaker 6: so multiple to the market, especially as they're showing leverage.

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Speaker 6: You know, you look at Microsoft Microsoft again, if you

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Speaker 6: look at twenty twenty six numbers, it trades at a

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Speaker 6: five percent free CASHUW yield. So to me, these aren't

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Speaker 6: really set up as bubble esque type valuations, and we're

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Speaker 6: not terribly exuberant, especially after this fallback.

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Speaker 4: Well said Uncle Crawford.

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Speaker 3: Really great to get your perspective as someone who is

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Speaker 3: holding a lot of these names, investing in and indeed

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Speaker 3: adding to we thank you, Uncle Crawford of algia.

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Speaker 4: Great way to kick off this week.

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Speaker 3: Meanwhile, coming up, Apple preparing to unveil a new lineup

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Speaker 3: of vipe as we're just talking about. It's the product

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Speaker 3: launch called Let's Loose as tomorrow we're gonna be previewing

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Speaker 3: the event. Next Meanwhile, let's just look at GameStop, which

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Speaker 3: is moving for no apparent reason. Again, you know, it's

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Speaker 3: the og meme stock. We're down some thirteen percent last week.

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Speaker 3: Of course it was rallying hard. I mean ended Friday's

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Speaker 3: session up about twenty nine percent. That seems to be

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Speaker 3: a real well desired to be getting in and out

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Speaker 3: on this key meme name once again, we'll keep an

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Speaker 3: eye for you. This will blue Bid Technology. Berkshire hathawayn

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Speaker 3: Hel does annual meeting over the weekend, of course, and

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Speaker 3: Apple quickly became one of the biggest topics as the

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Speaker 3: meeting unfolded. Warren Buffett here praise the company, calling the

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Speaker 3: iPhone one of the greatest products of all time.

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Speaker 4: That was after revealing h kind of steak.

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Speaker 3: Berkshire reported a one hundred and thirty five point four

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Speaker 3: billion dollar holding in Apple at the end of the

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Speaker 3: first quarter, down.

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Speaker 4: From one hundred and seventy four zero point three billion

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Speaker 4: at the year end.

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Speaker 3: Now, meanwhile, whole news when it comes to Apple and

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Speaker 3: fox Conn, which of course assembles the majority of iPhones,

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Speaker 3: posted its strongest monthly sales growth since the start of

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Speaker 3: twenty twenty three. And just look at what the impact

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Speaker 3: I had on the shares potentially of course, raising those

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Speaker 3: expectations for iPhones for a server sales. I spoke it

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Speaker 3: all down and push your heead tomorrow's event. Of course,

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Speaker 3: all regarding the iPad Springberg's Mark Guman here with us

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Speaker 3: and on high or fox Conn, however you want to

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Speaker 3: talk about it, always a great tell we'd been worried

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Speaker 3: about its previous earnings. But now it looks that from

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Speaker 3: a month to month basis on year on year monthly posting,

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Speaker 3: we're getting record say for the company.

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Speaker 7: If you look at the prior quarter, han Hi's revenue,

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Speaker 7: their expectations, their forecasts.

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Speaker 2: Weren't so hot, right.

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Speaker 7: And then you saw Apple reveal its iPhone sales for

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Speaker 7: the previous quarter last week, and you saw the iPhone

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Speaker 7: come in about five billion dollars down on a year

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Speaker 7: of a year basis.

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Speaker 2: Right.

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Speaker 7: But looking ahead to the June quarter, the current window

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Speaker 7: that we're in, Apple set it expects revenue to grow

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Speaker 7: low single digits, right, so growing for the first time

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Speaker 7: in a couple quarters. Here, and fox CON's expectations for

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Speaker 7: this quarter as well, it seems to align with that,

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Speaker 7: given that they still assemble the vast majority of iPhones

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Speaker 7: via fox Con. Now not only iPhones driving that han

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Speaker 7: high revenue, it's also development and manufacturing of AI servers

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Speaker 7: for various companies. However, I don't believe that the AI

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Speaker 7: servers that fox Coon is building are connected to Apple's

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Speaker 7: AI announcement coming in June. For all intentsive purposes, the

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Speaker 7: AI from Apple will be on device at least from

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Speaker 7: the get go, and probably using third party infrastructure, not

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Speaker 7: something they're creating on their own. But one day I

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Speaker 7: do expect Apple to move to its own AI server environment.

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Speaker 3: Oh interesting, Okay, And therefore talk to us about the

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Speaker 3: long term commitment to Apple and indeed perhaps a pullback

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Speaker 3: coming from what is its third biggest shareholder, Berkshire Hathaway saying, look,

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Speaker 3: we are pulling and trimming back, but they still seem

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Speaker 3: to believe in Apple as a key tech winner.

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Speaker 2: Yeah.

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Speaker 7: I think Buffett does seem to believe Apple is a

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Speaker 7: key tech winner. I mean Buffett in his typical process

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Speaker 7: for which stocks he buys.

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Speaker 2: Apple is right up his alley. Right, You're not.

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Speaker 7: Going to see Apple grow tenfold or to some significant

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Speaker 7: degree at this point, but you know that it's more

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Speaker 7: likely than not that you're going to get solid returns

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Speaker 7: off this company. You're not going to lose your money.

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Speaker 7: It's certainly better than putting your money in a bond

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Speaker 7: market or in a mutual fund in most cases. So

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Speaker 7: it is a very safe pick Apple, I think for

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Speaker 7: many quarters to come, despite the fact that it's not

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Speaker 7: going to be a high flyer or anything like that.

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Speaker 3: I meant one hundred and ten billion dollar share by

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Speaker 3: that many feeling that that's the tell it's a value

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Speaker 3: stock now rather than a growth stock mark. But I'm

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Speaker 3: interested in away from the arbitrary way in which we

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Speaker 3: describe whether you buy into this stock. We are all

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Speaker 3: caring about the products and the unveilings, and we're going

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Speaker 3: to get some.

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Speaker 7: Yeah, that's right. Tomorrow Tuesday, seven am Pacific time, t

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Speaker 7: am Eastern time, is there let loose iPad product launch.

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Speaker 7: There's going to be a few things coming. One is

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Speaker 7: a revamped version of the iPad Pro. This will be

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Speaker 7: the most significant update to the company's tablet since the

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Speaker 7: current model was launched in twenty eighteen. You're also going

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Speaker 7: to see a new iPad Air. Why is that important, Well,

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Speaker 7: in addition to a spec bump, you're getting a bigger

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Speaker 7: iPad Air, something closer to the size of a MacBook

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Speaker 7: Air for the screen, a twelve point nine inch display.

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Speaker 7: This will be the first time that Apple's offering a

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Speaker 7: twelve point nine inch iPad at that mid tier price

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Speaker 7: point right and at that mid tier product line. So

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Speaker 7: that's a big deal as Apple looks to make it

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Speaker 7: iPads more like Max and expand the product line there,

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Speaker 7: and then you're going to see them rebuild the ecosystem

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Speaker 7: around its iPads. It's two key new accessories. Is going

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Speaker 7: to be a new Magic keyboard, a higher end version

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Speaker 7: that makes the iPad pro look more like a laptop

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Speaker 7: all in use, something that's a bit more durable and convenient.

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Speaker 7: The second thing is a pro version of the Apple pencil,

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Speaker 7: so a new higher end skew of its Apple pencil silence.

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Speaker 7: That's a really popular accessory that artists and creatives and

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Speaker 7: others like to use for drawing. The new version will

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Speaker 7: have some new gestures so you can squeeze on it

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Speaker 7: to have certain commands. Apples homepage was updated this morning

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Speaker 7: where you can use an Apple pencil a virtual pencil

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Speaker 7: to erase the logo on Apples homepage, which might imply

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Speaker 7: that the pencil's finally getting an eraser on the back

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Speaker 7: like a classic number two pencil. And the other thing

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Speaker 7: I've written that we'll have is hap to feedback, so

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Speaker 7: when you use the pencil, it'll vibrate back on your finger,

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Speaker 7: so you know what you're doing based on tactile feedback.

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Speaker 7: So that's going to be a pretty nissed the update

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Speaker 7: as well. And I think overall, for iPad fans, especially

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Speaker 7: those who've been waiting many, many, many months, even years

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Speaker 7: for a revamp version of iPad Pro, tomorrow is going

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Speaker 7: to be quite an exciting product launch for them.

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Speaker 3: I love playing Mark German bingo of all the things

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Speaker 3: that you've just told us and playing it out tomorrow

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Speaker 3: when they all come to life. We thank you, Lumog's

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Speaker 3: Mark German on all things Apple and iPad.

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Speaker 4: Time now for talking tech.

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Speaker 3: First up Chinese self driving firm Momenta, but as far

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Speaker 3: confidentially for an IPO in the United States calling to

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Speaker 3: sources and it may happen as early as this year now.

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Speaker 3: The company was founded in twenty sixteen by a team

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Speaker 3: of AI engineers from Microsoft Research Asia, and its backers

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Speaker 3: include General Motors and Tamasek Plus. The Biden Administration is

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Speaker 3: opening applications for two hundred and eighty five million dollars

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Speaker 3: in federal funding set up an institute focused on digital

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Speaker 3: twin technology for the chip industry. This technology can leverage

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Speaker 3: AI to help reduce development and manufacturing costs. And Jack Dawsey,

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Speaker 3: when he's left the board of social networking service Blue Sky,

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Speaker 3: which he of course, helped fund and popularize.

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Speaker 4: A year ago, in the week of Coin of some

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Speaker 4: regret over.

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Speaker 3: The sale of Twitter to Elon musk Now, the Twitter

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Speaker 3: co founder took to now x to tout his new

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Speaker 3: philanthropic grants to open Internet protocols, which he described as

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Speaker 3: quote freedom technology. In fact, he said that X is

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Speaker 3: such a freedom technology. Now, let's turn our attention to

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Speaker 3: the French tech company Atos now.

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Speaker 4: It says it has received some.

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Speaker 3: Four proposals to restore the group to financial health, including

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Speaker 3: one it already rejected from main Capital.

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Speaker 4: Now the firm is seeking to reach a deal by

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Speaker 4: the end of.

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Speaker 3: The month to inject fresh funds after clients have actually

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Speaker 3: begun to hold off business.

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Speaker 4: The latest bidders to throw their hats into the ring.

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Speaker 3: Are check billionaire Danielle Kratinski and David Leani's one point,

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Speaker 3: let's break it all downs, Benoir, butterlo is with us

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Speaker 3: and Benoir just remind us this is a company that's

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Speaker 3: sort of incredibly integraly in the tech space in France

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Speaker 3: and ultimately the government was to make sure that it survives.

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Speaker 8: Yeah, it's been a darling of the French tech scene

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Speaker 8: and a major blue chip indexed company in France. It

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Speaker 8: used to have a market capitalization of fifteen billion. It's

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Speaker 8: now down to two hundred millions. It's got lots of

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Speaker 8: problem and it's in indeed a key IT company. It

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Speaker 8: has one hundred thousand employees ten billion of revenues last year,

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Speaker 8: many key customers around the world. The IT for the

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Speaker 8: Olympic Games for example upcoming in Paris this summer, but

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Speaker 8: also key defense activities for just the French defense industry.

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Speaker 8: It also has supercomputers that help the nuclear industries. So

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Speaker 8: the French government, seeing the trouble of the company, finally

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Speaker 8: decided to make a bid on that part of the company.

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Speaker 8: The more strategic activities.

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Speaker 4: Talk us through the rivals here.

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Speaker 3: Some of the key players, as we mentioned, mentioned a

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Speaker 3: couple of billionaires during their hasten the ring.

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Speaker 8: Exactly. So one of the bids is actually from the

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Speaker 8: bondholders of the company. They want to be center stage here,

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Speaker 8: They want to be key in deciding who's going to

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Speaker 8: be the winner, so they are open to partner with

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Speaker 8: an anchor shareholder, and this could be either the check

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Speaker 8: billionaire Daniel Kretinski. He's been known to buy sort of

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Speaker 8: unloved assets assets that need structuring. He started in energy.

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Speaker 8: He's been to retail in France. He already made a

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Speaker 8: bid to buy retailer Casino. It was with a test

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Speaker 8: the credit Fund. And he's teaming up with Attesta again

440
00:21:43,960 --> 00:21:47,240
Speaker 8: to make a bid for Atos. And then there is

441
00:21:47,560 --> 00:21:51,440
Speaker 8: David Laianis, a French entrepreneur. He has a much smaller

442
00:21:51,800 --> 00:21:55,960
Speaker 8: IT company called one Point and he's teaming with Butler Industries,

443
00:21:56,520 --> 00:22:01,040
Speaker 8: another investor in France to buy the company and in

444
00:22:01,080 --> 00:22:04,080
Speaker 8: a plen that he's calling one. So it's sort of

445
00:22:04,240 --> 00:22:06,440
Speaker 8: down to a race between these two.

446
00:22:07,000 --> 00:22:09,880
Speaker 3: We'll see how the race continues. Renoir Blo, we thank

447
00:22:09,920 --> 00:22:19,239
Speaker 3: you so much. Welcome back to Blue Mel Technology. I'm

448
00:22:19,280 --> 00:22:21,000
Speaker 3: Caroline hired in New York. Let's get a quick check

449
00:22:21,000 --> 00:22:23,359
Speaker 3: on these markets because it's a little bit of optimism

450
00:22:23,520 --> 00:22:25,399
Speaker 3: out there. On the day we're managing to see a

451
00:22:25,480 --> 00:22:27,919
Speaker 3: higher tuned than as that one hundred and six tens percent.

452
00:22:28,200 --> 00:22:32,240
Speaker 3: After we see well perhaps a quietening in overall economic data,

453
00:22:32,359 --> 00:22:35,359
Speaker 3: but a ramp up in discussion coming from the Federal Reserve,

454
00:22:35,560 --> 00:22:37,920
Speaker 3: after we got a little bit more of a tamer

455
00:22:37,960 --> 00:22:40,679
Speaker 3: comments coming out of Chair Power the market trying to

456
00:22:41,080 --> 00:22:43,080
Speaker 3: even bait back in some of those rate cuts for

457
00:22:43,119 --> 00:22:45,000
Speaker 3: the rest of the year. We're seeing the MSCI or

458
00:22:45,040 --> 00:22:47,040
Speaker 3: country world in next on the higher side too. Really,

459
00:22:47,040 --> 00:22:49,399
Speaker 3: we've seen money move into the European assets and indeed

460
00:22:49,400 --> 00:22:51,080
Speaker 3: Asian on the day Bitcoin though.

461
00:22:50,920 --> 00:22:52,800
Speaker 4: Not finding the love for the risk on feeling.

462
00:22:53,000 --> 00:22:56,040
Speaker 3: We're down to sixty three, three and ninety two currently

463
00:22:56,119 --> 00:22:58,840
Speaker 3: up down by just five ten percent though so small change.

464
00:22:58,880 --> 00:22:59,720
Speaker 4: Let's move on and have a.

465
00:22:59,640 --> 00:23:02,480
Speaker 3: Look at else was moving in the world of crypto

466
00:23:02,600 --> 00:23:05,920
Speaker 3: and individual companies, because well, more broadly, we have seen

467
00:23:06,240 --> 00:23:08,720
Speaker 3: the chip sector doing particularly well on the day, seeing

468
00:23:08,720 --> 00:23:11,000
Speaker 3: in video Ramphi, I was seeing Micron getting an upgrade

469
00:23:11,000 --> 00:23:13,400
Speaker 3: from analysts. That's on the higher side, leading the charge

470
00:23:13,440 --> 00:23:16,280
Speaker 3: on the socks. We're seeing generally a veeling of getting

471
00:23:16,280 --> 00:23:18,320
Speaker 3: back into these chip names ahead of arm this week.

472
00:23:18,440 --> 00:23:19,760
Speaker 4: Remember the chip design.

473
00:23:19,520 --> 00:23:21,919
Speaker 3: Company coming out with its earnings Apple on the downside, there,

474
00:23:22,000 --> 00:23:23,920
Speaker 3: I'm afray Warren Buffett cutting his stake even though he

475
00:23:23,960 --> 00:23:25,280
Speaker 3: poured on a lot of love for the company.

476
00:23:25,440 --> 00:23:26,040
Speaker 4: All eyes in.

477
00:23:26,040 --> 00:23:29,600
Speaker 3: The iPad unveil tomorrow and Robin Hood up a quarter

478
00:23:29,640 --> 00:23:31,840
Speaker 3: of percent now coming off of some of its highs.

479
00:23:31,840 --> 00:23:34,399
Speaker 3: Were training exactly eighteen on the nose Now's after the

480
00:23:34,480 --> 00:23:37,719
Speaker 3: SEC is one that robin hood is crypto business faces

481
00:23:37,760 --> 00:23:41,720
Speaker 3: potentially a lawsuit a so called Well's notice from staff

482
00:23:41,760 --> 00:23:44,920
Speaker 3: of the SEC. I'spoke it down, woemgs Shnani Bassack any

483
00:23:45,520 --> 00:23:48,840
Speaker 3: detail what it is the SEC doesn't like about robin

484
00:23:48,840 --> 00:23:49,760
Speaker 3: Hood's playing crypto.

485
00:23:49,920 --> 00:23:52,520
Speaker 9: Let's just talk about crypto in general, because what this

486
00:23:52,960 --> 00:23:56,040
Speaker 9: was was a security stiling that robin Hood made that

487
00:23:56,160 --> 00:23:58,920
Speaker 9: had about a two paragraph detailing that said they received

488
00:23:58,960 --> 00:24:01,960
Speaker 9: the Wells notice, which knows essentially an intent for the

489
00:24:02,119 --> 00:24:05,560
Speaker 9: SEC to sue against the use of its cryptocurrency business.

490
00:24:05,600 --> 00:24:08,280
Speaker 9: So we don't know exactly all the details behind it,

491
00:24:08,560 --> 00:24:12,000
Speaker 9: but we do have robin Hood's statement in return, which

492
00:24:12,080 --> 00:24:15,000
Speaker 9: says that they firmly believe at Robinhood, their officials believe

493
00:24:15,280 --> 00:24:18,320
Speaker 9: that the assets listed on our platform are not securities.

494
00:24:18,400 --> 00:24:22,040
Speaker 9: We know that the SEC has been looking at exchanges

495
00:24:22,080 --> 00:24:24,719
Speaker 9: and brokerages for the listing of what they deem as

496
00:24:24,840 --> 00:24:27,840
Speaker 9: unregistered securities, but we also know that this has been

497
00:24:28,119 --> 00:24:31,000
Speaker 9: a massive fight between many players in the industry as

498
00:24:31,080 --> 00:24:34,520
Speaker 9: well as their fight against the SEC itself in this pursuit.

499
00:24:34,720 --> 00:24:37,760
Speaker 3: I mean, yes, you can trade crypto on robin Hood,

500
00:24:37,840 --> 00:24:39,560
Speaker 3: but most people think of it more of a stock play.

501
00:24:39,600 --> 00:24:41,760
Speaker 3: I mean, it's interesting that game stops back front and

502
00:24:41,800 --> 00:24:45,000
Speaker 3: center with the mean stock frenzy today. But how important

503
00:24:45,119 --> 00:24:46,560
Speaker 3: is crypto to robin Hood?

504
00:24:46,800 --> 00:24:49,640
Speaker 9: So look at the overall assets here, the assets under

505
00:24:49,680 --> 00:24:51,760
Speaker 9: custody over at Robinhood at the end of last year,

506
00:24:52,040 --> 00:24:54,960
Speaker 9: less than fifteen percent were crypto. But even though it's

507
00:24:54,960 --> 00:24:58,680
Speaker 9: a small amount of the overall crypto play, the overall

508
00:24:59,160 --> 00:25:01,560
Speaker 9: also the overall marketplay. To your point, they're known for

509
00:25:01,600 --> 00:25:04,840
Speaker 9: equities and options trading for the most part. That same quarter,

510
00:25:05,080 --> 00:25:07,960
Speaker 9: the last quarter of last year, you saw equities and

511
00:25:08,040 --> 00:25:10,960
Speaker 9: options volumes kind of drop off here, they were negative,

512
00:25:11,080 --> 00:25:14,600
Speaker 9: whereas crypto trading volumes had risen pretty meaningfully. So, even

513
00:25:14,640 --> 00:25:16,919
Speaker 9: if it's a smaller base, the business has been rising

514
00:25:17,080 --> 00:25:20,359
Speaker 9: very dramatically, and they report on Wednesday after market, and

515
00:25:20,560 --> 00:25:23,119
Speaker 9: you would probably see them really benefiting from that crypto

516
00:25:23,200 --> 00:25:25,240
Speaker 9: boom in the first quarter of this year. It is

517
00:25:25,359 --> 00:25:27,879
Speaker 9: volatile revenue, it's a smaller part of their business, but

518
00:25:28,119 --> 00:25:32,240
Speaker 9: it's been helping them attract new customers. With that said,

519
00:25:32,440 --> 00:25:35,359
Speaker 9: investors have also shaken off these worries about the sec

520
00:25:35,520 --> 00:25:38,639
Speaker 9: at other platforms as well, and again these fights have

521
00:25:38,760 --> 00:25:42,160
Speaker 9: been long because companies have tended to sue back. Let's

522
00:25:42,200 --> 00:25:43,760
Speaker 9: see how Robinhood handles the.

523
00:25:43,720 --> 00:25:45,679
Speaker 3: Situation with you, and we look forward to their earnings

524
00:25:45,720 --> 00:25:48,919
Speaker 3: as well. Shaniambasse, thanks so much for bringing us the latest. Meanwhile,

525
00:25:49,000 --> 00:25:51,160
Speaker 3: let's go to the latest in LA. The Milkin Institute

526
00:25:51,200 --> 00:25:54,119
Speaker 3: Global Conference has just kicked off this weekend in Beverly Hills,

527
00:25:54,400 --> 00:25:57,400
Speaker 3: where finance chiefs, tech heavyweights, even in a mosca there

528
00:25:57,480 --> 00:26:00,600
Speaker 3: gathering to discuss everything from your guess to AI of

529
00:26:00,680 --> 00:26:03,520
Speaker 3: course geopolitics. Now, our own Wall Street Week host David

530
00:26:03,560 --> 00:26:06,240
Speaker 3: Weston just sat down with armand Krishna IBM chairman and

531
00:26:06,359 --> 00:26:08,920
Speaker 3: CEO to discuss well, the regulatory landscape for tech.

532
00:26:08,960 --> 00:26:09,440
Speaker 4: Take listen.

533
00:26:10,440 --> 00:26:13,720
Speaker 10: I think every regulator is worried about three topics, not

534
00:26:14,000 --> 00:26:17,840
Speaker 10: just safety in regulation. They're wanted about innovation. They're worried

535
00:26:17,880 --> 00:26:21,399
Speaker 10: about competition, and they're worried about safety and regulation. So

536
00:26:21,440 --> 00:26:24,280
Speaker 10: when you take those three together, the AI alliance that

537
00:26:24,440 --> 00:26:27,920
Speaker 10: open really come together to help you foment innovation. So

538
00:26:28,040 --> 00:26:30,440
Speaker 10: I think that that actually helps the regulators to think

539
00:26:30,480 --> 00:26:33,480
Speaker 10: about what is going on here. While I am caution

540
00:26:33,960 --> 00:26:36,600
Speaker 10: there will be some guardrails that are always put. But

541
00:26:36,760 --> 00:26:40,200
Speaker 10: in my experience, open technologies have always been safer and

542
00:26:40,320 --> 00:26:42,480
Speaker 10: more secure than close technologies.

543
00:26:42,960 --> 00:26:45,320
Speaker 1: Is one of the risks that maybe you're aviating with

544
00:26:45,400 --> 00:26:47,840
Speaker 1: your emphasis on open architecture, that some of that i'll

545
00:26:47,880 --> 00:26:50,280
Speaker 1: call them big guys get an advantage and really have

546
00:26:50,359 --> 00:26:51,240
Speaker 1: an entrenched position.

547
00:26:52,119 --> 00:26:55,840
Speaker 10: Well, I'll use the concern of a world garden. When

548
00:26:55,920 --> 00:27:00,440
Speaker 10: you have a world garden, has those areas and technologies

549
00:27:00,520 --> 00:27:03,480
Speaker 10: been more innovative or less innovative? All the said of

550
00:27:03,600 --> 00:27:06,680
Speaker 10: all garden has always been less innovative, And so I

551
00:27:06,760 --> 00:27:10,080
Speaker 10: think that it actually helps you create more competition. Does

552
00:27:10,119 --> 00:27:13,840
Speaker 10: it avoid regulatory lock in off a certain one or

553
00:27:13,840 --> 00:27:14,399
Speaker 10: two players?

554
00:27:14,840 --> 00:27:15,080
Speaker 7: Likely?

555
00:27:15,400 --> 00:27:16,800
Speaker 2: But isn't that good for all of us?

556
00:27:17,440 --> 00:27:19,280
Speaker 1: Are you pro regulation?

557
00:27:20,160 --> 00:27:22,560
Speaker 10: I am pro regulation as long as is it a

558
00:27:22,760 --> 00:27:27,160
Speaker 10: light touch and allows innovation to happen. I absolutely would

559
00:27:27,160 --> 00:27:31,399
Speaker 10: be pro regulation. If regulation tries to reduce innovation, I

560
00:27:31,480 --> 00:27:32,320
Speaker 10: think that's the problem.

561
00:27:32,560 --> 00:27:35,919
Speaker 1: What about the tsituation between between regulating the technology as

562
00:27:35,960 --> 00:27:39,080
Speaker 1: opposed to regulating the uses. We had Sam parmasan or

563
00:27:39,080 --> 00:27:41,719
Speaker 1: somebody you know well on who said he thinks regulate

564
00:27:41,800 --> 00:27:45,040
Speaker 1: the uses, don't regulate that technology because that will impair innovation.

565
00:27:45,480 --> 00:27:49,200
Speaker 10: Always How can you regulate the technology when you don't

566
00:27:49,200 --> 00:27:51,560
Speaker 10: even know where the technology can go? Two years ago,

567
00:27:51,600 --> 00:27:54,040
Speaker 10: who had heard of a large language model. If you

568
00:27:54,119 --> 00:27:57,280
Speaker 10: come out with our technique instruct Lab six months ago,

569
00:27:57,359 --> 00:27:58,840
Speaker 10: nobody had heard of that, there will be.

570
00:27:58,840 --> 00:28:00,760
Speaker 2: Another one, and another one and another one.

571
00:28:01,000 --> 00:28:05,760
Speaker 10: So I think triger regulated technology implies that the regulator

572
00:28:06,680 --> 00:28:09,720
Speaker 10: and the policy forks believe no more innovation can happen.

573
00:28:10,280 --> 00:28:11,640
Speaker 4: I think that's a bad bet to make.

574
00:28:13,200 --> 00:28:15,600
Speaker 3: Of course, the CEO of IBM there a Vin Krishna

575
00:28:15,720 --> 00:28:18,159
Speaker 3: with our own David Weston. Meanwhile, coming up, look, we're

576
00:28:18,160 --> 00:28:21,040
Speaker 3: going to be joined by Andreill founder Harma Lucky from

577
00:28:21,080 --> 00:28:24,000
Speaker 3: an exclusive interview on the company's brand new suite of

578
00:28:24,160 --> 00:28:28,120
Speaker 3: AI powered products coming out next This is really big technology.

579
00:28:39,040 --> 00:28:42,680
Speaker 3: Andreil is announcing a brand new range of AI powered

580
00:28:42,840 --> 00:28:47,040
Speaker 3: defense products, now the Pulsar family of AI enabled Electromagnetic

581
00:28:47,120 --> 00:28:50,520
Speaker 3: warfare or EW systems. They basic expand on the existing

582
00:28:50,600 --> 00:28:54,160
Speaker 3: EW systems by not only countering known threats with pre

583
00:28:54,320 --> 00:28:58,080
Speaker 3: programmed techniques, but by leveraging you guessed artificial intelligence to

584
00:28:58,160 --> 00:29:00,840
Speaker 3: detect both known and new threats. Got to break down

585
00:29:00,840 --> 00:29:03,760
Speaker 3: what this really means, ANDREW founder Palma Lucky joins us

586
00:29:03,800 --> 00:29:04,840
Speaker 3: NOW and Palmer.

587
00:29:04,920 --> 00:29:07,480
Speaker 4: A key question is how is this used? How is

588
00:29:07,560 --> 00:29:08,120
Speaker 4: this different?

589
00:29:09,240 --> 00:29:11,360
Speaker 2: Well, first of all, note that Pulsar is already being

590
00:29:11,480 --> 00:29:15,680
Speaker 2: used by US military customers across multiple continents, multiple AORs,

591
00:29:15,840 --> 00:29:20,080
Speaker 2: on fixed sites, on mounted vehicles, and on aircraft. So Pulsar,

592
00:29:20,080 --> 00:29:22,920
Speaker 2: while we're announcing it for the first time today ahead

593
00:29:22,960 --> 00:29:25,960
Speaker 2: of Softweek, it's actually been in existence for years. This

594
00:29:26,080 --> 00:29:27,760
Speaker 2: is something we haven't been able to talk about, but

595
00:29:27,880 --> 00:29:29,360
Speaker 2: we've been working on for a long time. It's an

596
00:29:29,360 --> 00:29:32,760
Speaker 2: AI powered electronic warfare tool. They can understand what's going

597
00:29:32,800 --> 00:29:36,360
Speaker 2: on in the RF domain and then take measures to

598
00:29:36,640 --> 00:29:41,200
Speaker 2: accomplish your aims within the RF domain, so jamming, hacking, spoofing, controlling,

599
00:29:41,280 --> 00:29:44,760
Speaker 2: identifying things, countering those things, making sure that your own

600
00:29:44,920 --> 00:29:48,760
Speaker 2: electronic systems maintain their functionality. And it's able to do

601
00:29:48,840 --> 00:29:52,120
Speaker 2: that extremely fast because it's powered by Lattice, our AI

602
00:29:52,280 --> 00:29:55,000
Speaker 2: system that powers all and or all products. It's able

603
00:29:55,080 --> 00:29:57,560
Speaker 2: to do what would have previously taken a team of

604
00:29:57,640 --> 00:30:01,800
Speaker 2: electronic warfare specialists and a build full of equipment weeks

605
00:30:02,040 --> 00:30:04,400
Speaker 2: or months to accomplish in just seconds.

606
00:30:05,440 --> 00:30:07,880
Speaker 3: So to that point and power, I of course preface

607
00:30:07,960 --> 00:30:11,080
Speaker 3: all of this from a political perspective, but from a

608
00:30:11,160 --> 00:30:13,800
Speaker 3: personal perspective. Right now, it is an emotional time when

609
00:30:13,840 --> 00:30:16,640
Speaker 3: we're discussing war, when we're discussing warfare, so we're sensitive

610
00:30:16,680 --> 00:30:20,200
Speaker 3: to that. But where at the moment is this being

611
00:30:20,440 --> 00:30:21,920
Speaker 3: used in a different kind of way. You were just

612
00:30:21,960 --> 00:30:24,240
Speaker 3: talking about how it's already been basically been new since

613
00:30:24,240 --> 00:30:24,800
Speaker 3: twenty twenty.

614
00:30:24,880 --> 00:30:26,120
Speaker 4: That's the first time you can discuss it.

615
00:30:26,480 --> 00:30:29,360
Speaker 3: How has artificial intelligence change the pace with which you

616
00:30:29,520 --> 00:30:33,320
Speaker 3: can iterate? But also things are changing within warfare well.

617
00:30:33,320 --> 00:30:35,200
Speaker 2: I started an underall because I was concerned with the

618
00:30:35,320 --> 00:30:37,520
Speaker 2: United States and our allies around the world. We're losing

619
00:30:37,600 --> 00:30:40,400
Speaker 2: our technological edge to some of our near peers and

620
00:30:40,600 --> 00:30:43,320
Speaker 2: even now in many areas peers, and I think that

621
00:30:43,480 --> 00:30:45,480
Speaker 2: how things have been playing out in Ukraine and around

622
00:30:45,480 --> 00:30:49,640
Speaker 2: the world have really proven that out AI is changing

623
00:30:49,720 --> 00:30:51,640
Speaker 2: the game in a lot of ways because it allows

624
00:30:51,720 --> 00:30:54,320
Speaker 2: you to deploy large numbers of systems in a much

625
00:30:54,360 --> 00:30:56,640
Speaker 2: more intelligent, much more useful way than we've ever been

626
00:30:56,680 --> 00:30:59,680
Speaker 2: able to do before with even remotely piloted systems, and

627
00:31:00,040 --> 00:31:01,800
Speaker 2: been focused on AI since the beginning of our company

628
00:31:01,840 --> 00:31:04,600
Speaker 2: about seven years ago. You'll notice that our name and

629
00:31:04,800 --> 00:31:08,280
Speaker 2: or all industries is you know, the acronym is AI,

630
00:31:09,480 --> 00:31:11,600
Speaker 2: and that's for a reason we were we believe that

631
00:31:11,680 --> 00:31:13,960
Speaker 2: artificial intelligence was going to be changing the nature of

632
00:31:14,040 --> 00:31:16,840
Speaker 2: warfare long before a lot of people were paying any

633
00:31:16,840 --> 00:31:18,840
Speaker 2: attention to AI. I remember when we were starting our

634
00:31:18,840 --> 00:31:21,080
Speaker 2: company and it was hard to raise money for AI companies.

635
00:31:21,120 --> 00:31:23,200
Speaker 2: People weren't taking it seriously. They saw it as kind

636
00:31:23,200 --> 00:31:26,600
Speaker 2: of a science fiction gem, but not something that was real.

637
00:31:27,200 --> 00:31:31,360
Speaker 2: And unfortunately the reality of the world today has forced

638
00:31:31,360 --> 00:31:34,040
Speaker 2: people to start paying more attention to what AI can

639
00:31:34,200 --> 00:31:35,160
Speaker 2: do on the battlefield.

640
00:31:35,640 --> 00:31:38,880
Speaker 3: People paying attention a government they have to are the

641
00:31:38,960 --> 00:31:41,480
Speaker 3: defense sector in particular, and I mean I speak to

642
00:31:41,520 --> 00:31:43,400
Speaker 3: the fact that the Air Force in the United States

643
00:31:43,600 --> 00:31:46,240
Speaker 3: has got with the program, understood the impact that you're making,

644
00:31:46,280 --> 00:31:47,040
Speaker 3: and ultimately what.

645
00:31:47,120 --> 00:31:47,520
Speaker 4: Brought you on.

646
00:31:47,680 --> 00:31:50,360
Speaker 3: You're now doing a program you're sort of seen as

647
00:31:50,560 --> 00:31:53,600
Speaker 3: a new type, a new force of defense tech startup.

648
00:31:53,640 --> 00:31:56,440
Speaker 3: You actually call it a non traditional defense company. Can

649
00:31:56,480 --> 00:32:00,000
Speaker 3: you talk us through the Collaborative Combat Aircraft program? Basically,

650
00:32:00,280 --> 00:32:04,040
Speaker 3: this is about aircraft that fly alongside those that are manned.

651
00:32:05,200 --> 00:32:06,920
Speaker 2: Sure. I mean this is an area where the US

652
00:32:06,960 --> 00:32:09,560
Speaker 2: Air Force and Secretary Kendall deserve a lot of credit

653
00:32:09,640 --> 00:32:13,120
Speaker 2: for their vision. They want to deploy AI powered aircraft

654
00:32:13,280 --> 00:32:17,080
Speaker 2: at scale alongside manned aircraft on a timeline that is

655
00:32:17,160 --> 00:32:19,760
Speaker 2: relevant to the conflicts that we are trying to deter

656
00:32:20,400 --> 00:32:23,000
Speaker 2: and that have the ranges and capabilities that we need

657
00:32:23,280 --> 00:32:26,040
Speaker 2: to be meaningful to the adversaries that we might have

658
00:32:26,160 --> 00:32:29,520
Speaker 2: to fight. I'll just name the name. It's China. CCA.

659
00:32:29,640 --> 00:32:33,840
Speaker 2: The Collaborative Combat Aircraft Program is the program to develop

660
00:32:33,920 --> 00:32:37,360
Speaker 2: and then build over one thousand ccas that are going

661
00:32:37,440 --> 00:32:41,640
Speaker 2: to fly alongside manned aircraft. Loyal wingman, they've loyal wingman,

662
00:32:41,680 --> 00:32:45,120
Speaker 2: they've been called andre All just beat out Lockheed Martin,

663
00:32:45,240 --> 00:32:48,600
Speaker 2: Northrop Grumman, and Boeing for a slot on the CCA program.

664
00:32:48,680 --> 00:32:50,840
Speaker 2: We're going to be using that slot to build production

665
00:32:51,040 --> 00:32:55,600
Speaker 2: representative aircraft, not prototypes, but production representative aircraft that are

666
00:32:55,640 --> 00:32:57,640
Speaker 2: going to be ready to go to scale at manufacturing

667
00:32:58,120 --> 00:33:00,440
Speaker 2: if we can hit all of our hit all of

668
00:33:00,480 --> 00:33:03,120
Speaker 2: our milestones, and proved that we are as good at

669
00:33:03,120 --> 00:33:04,840
Speaker 2: building airplanes as we are at building AI.

670
00:33:05,680 --> 00:33:07,160
Speaker 4: You went there and you mentioned China.

671
00:33:07,280 --> 00:33:10,200
Speaker 3: I'm interested as to therefore where you will manufacture and

672
00:33:10,400 --> 00:33:16,040
Speaker 3: ultimately see deploying of these particular autonomous fighter jets.

673
00:33:16,840 --> 00:33:19,120
Speaker 2: Well, they're going to be deployed right here or built

674
00:33:19,200 --> 00:33:21,000
Speaker 2: right here in the United States. Where they're going to

675
00:33:21,000 --> 00:33:22,880
Speaker 2: be deployed, that's up to our customer. I don't have

676
00:33:23,240 --> 00:33:25,520
Speaker 2: a ton of ton of insight into where exactly they

677
00:33:25,600 --> 00:33:27,000
Speaker 2: might do that, though I've got some ideas.

678
00:33:28,160 --> 00:33:29,800
Speaker 4: I'm interested where you see.

679
00:33:30,400 --> 00:33:34,960
Speaker 3: Therefore, at the moment, the US taking leadership back or

680
00:33:35,240 --> 00:33:38,640
Speaker 3: do you still worry since splesh you the founding of Andreille,

681
00:33:38,800 --> 00:33:43,000
Speaker 3: whether you do think that US has reasserted itself become

682
00:33:43,600 --> 00:33:44,600
Speaker 3: again the leader.

683
00:33:46,200 --> 00:33:47,840
Speaker 2: I think that we have a long way to go

684
00:33:47,920 --> 00:33:50,400
Speaker 2: in certain areas. But the really powerful thing is that

685
00:33:50,440 --> 00:33:53,560
Speaker 2: we've recognized the areas where we have problems. I think

686
00:33:53,840 --> 00:33:56,200
Speaker 2: people have been pulled out of their slumber. They realize

687
00:33:56,240 --> 00:33:58,320
Speaker 2: that there's areas we can move much faster. We can

688
00:33:58,400 --> 00:34:02,600
Speaker 2: do things in not years that just were not possible

689
00:34:02,960 --> 00:34:07,080
Speaker 2: to do within the bureaucracy before, within the previous construct

690
00:34:07,160 --> 00:34:09,239
Speaker 2: of how we're supposed to get things done. I mean,

691
00:34:09,360 --> 00:34:11,800
Speaker 2: the Air Force taking a bet on andrel on CCA

692
00:34:12,040 --> 00:34:14,880
Speaker 2: is just one of many examples of people realizing that

693
00:34:15,040 --> 00:34:18,320
Speaker 2: business as usual is not something that we have time for,

694
00:34:18,600 --> 00:34:21,320
Speaker 2: not in the modern timeline, not in the modern threat environment.

695
00:34:21,800 --> 00:34:25,480
Speaker 3: But what about the competition from the Boeings, from the Lockeys.

696
00:34:25,520 --> 00:34:27,560
Speaker 3: Are they not getting with the programs, starting up their

697
00:34:27,560 --> 00:34:29,960
Speaker 3: own internal startups or indeed making acquisitions.

698
00:34:31,160 --> 00:34:33,359
Speaker 2: You know, I don't feel like those guys are really

699
00:34:33,480 --> 00:34:36,600
Speaker 2: the competition. I feel a bit of a kinship with them. Look,

700
00:34:36,640 --> 00:34:38,439
Speaker 2: I'm not running my business the same way that they're

701
00:34:38,480 --> 00:34:40,239
Speaker 2: running their business. But at the end of the day,

702
00:34:40,280 --> 00:34:42,759
Speaker 2: we're all trying to protect the same country. We're all

703
00:34:42,880 --> 00:34:45,759
Speaker 2: trying to protect the same values more or less here

704
00:34:45,840 --> 00:34:49,120
Speaker 2: and around the world. I'm actually much more worried about

705
00:34:49,120 --> 00:34:51,719
Speaker 2: the competition from Iran. I'm much more worried about the

706
00:34:51,719 --> 00:34:55,320
Speaker 2: competition from Russia and China. We've had systems in Ukraine

707
00:34:55,440 --> 00:34:57,320
Speaker 2: since the second week of the war, and the innovation

708
00:34:57,400 --> 00:34:59,880
Speaker 2: that I've seen coming out of Russia, China and Iran

709
00:35:00,440 --> 00:35:06,200
Speaker 2: as kind of a coalition of very technologically advanced adversaries,

710
00:35:06,400 --> 00:35:08,800
Speaker 2: it worries me a lot more than the competition that

711
00:35:08,840 --> 00:35:10,520
Speaker 2: I have here in the US. There's things that I'm

712
00:35:10,600 --> 00:35:13,400
Speaker 2: going to build that I do better than Boeing, for example,

713
00:35:13,560 --> 00:35:15,160
Speaker 2: and there's things that Boeing is going to build that

714
00:35:15,480 --> 00:35:17,600
Speaker 2: where they're better than me. And I recognize that, and

715
00:35:17,640 --> 00:35:20,000
Speaker 2: I think we're doing a pretty good job of finding

716
00:35:20,120 --> 00:35:22,399
Speaker 2: how we can continue working together with all of these

717
00:35:22,440 --> 00:35:25,520
Speaker 2: different companies, and all these companies that I just mentioned

718
00:35:26,160 --> 00:35:28,680
Speaker 2: us beating on the CCA program, we're working with all

719
00:35:28,760 --> 00:35:31,520
Speaker 2: of them in some capacity on other programs. It's actually

720
00:35:31,800 --> 00:35:34,239
Speaker 2: a little less cutthroat than people would think because of

721
00:35:34,360 --> 00:35:36,680
Speaker 2: that very strong shared sense of mission that you see

722
00:35:37,000 --> 00:35:40,080
Speaker 2: in the United States National Security apparatus.

723
00:35:39,760 --> 00:35:41,759
Speaker 4: And your aligning incentives with allies as well.

724
00:35:41,840 --> 00:35:44,799
Speaker 3: And we note, of course, an autonomous sub that you've

725
00:35:44,800 --> 00:35:47,279
Speaker 3: been working with well Australia and actually sort of co

726
00:35:47,440 --> 00:35:51,000
Speaker 3: developing and keeping on pace unheard of kind of in

727
00:35:51,120 --> 00:35:53,320
Speaker 3: the defense contract space of actually being on time and

728
00:35:53,360 --> 00:35:53,840
Speaker 3: in budget.

729
00:35:54,200 --> 00:35:58,120
Speaker 4: But where else might you manufacture? Might you co develop?

730
00:35:58,200 --> 00:36:01,440
Speaker 3: It is interesting that one of our own reporters highlighting

731
00:36:01,520 --> 00:36:04,800
Speaker 3: that the VP of Taiwan was speaking at a US event,

732
00:36:04,920 --> 00:36:06,760
Speaker 3: would there ever be manufacturing in Taiwan?

733
00:36:08,120 --> 00:36:10,480
Speaker 2: Well, you're right on the Ghost Shark program. That's an

734
00:36:10,480 --> 00:36:12,880
Speaker 2: autonomous robotic submarine the size of a school bus that

735
00:36:12,920 --> 00:36:15,520
Speaker 2: we've been developing with the Royal Australian Navy, and we

736
00:36:15,600 --> 00:36:18,560
Speaker 2: actually just delivered the first submarine a year ahead of

737
00:36:18,600 --> 00:36:21,719
Speaker 2: schedule and on budget, which, as you mentioned, is rare.

738
00:36:21,960 --> 00:36:25,319
Speaker 2: It's practically unheard of. There are other areas where we're

739
00:36:25,360 --> 00:36:28,000
Speaker 2: looking to expand. I can't talk about the specifics of it,

740
00:36:28,080 --> 00:36:30,280
Speaker 2: but I can tell you that I'm in Taiwan frequently.

741
00:36:30,360 --> 00:36:32,399
Speaker 2: I was just there a few months ago. I'm going

742
00:36:32,480 --> 00:36:35,399
Speaker 2: back in just a few weeks. Taiwan is obviously one

743
00:36:35,520 --> 00:36:39,520
Speaker 2: of the key technological partners of the United States, especially

744
00:36:39,600 --> 00:36:43,760
Speaker 2: in the region. It's critical for United States military security

745
00:36:43,840 --> 00:36:47,239
Speaker 2: that Taiwan remains free and independent and democratic. But it's

746
00:36:47,320 --> 00:36:50,279
Speaker 2: also very important for our economy. I would say there

747
00:36:50,360 --> 00:36:53,239
Speaker 2: might not be another country in the world that is

748
00:36:54,320 --> 00:36:56,920
Speaker 2: really underpinning so much of our way of life when

749
00:36:56,960 --> 00:37:00,160
Speaker 2: it comes to semiconductors and all of the things they

750
00:37:00,239 --> 00:37:03,520
Speaker 2: power throughout our consumer and industrial and defense economy.

751
00:37:04,200 --> 00:37:07,320
Speaker 3: You talk about how things have changed, certainly from the

752
00:37:07,400 --> 00:37:13,400
Speaker 3: Ministry of Defense perspective, but what's also changing is the politicization,

753
00:37:14,160 --> 00:37:17,480
Speaker 3: ultimately of companies that are working within warfare, and we

754
00:37:17,600 --> 00:37:21,400
Speaker 3: certainly see that from protests here among students. How have

755
00:37:21,520 --> 00:37:24,320
Speaker 3: you been feeling angrel is being embraced still by the

756
00:37:24,400 --> 00:37:27,080
Speaker 3: private sector from a money perspective, are you raising money.

757
00:37:27,200 --> 00:37:28,800
Speaker 4: Is it easy to do so? Are you looking to

758
00:37:28,840 --> 00:37:29,320
Speaker 4: go public?

759
00:37:30,600 --> 00:37:33,439
Speaker 2: Well, Luckily, I think that there is a very big

760
00:37:33,760 --> 00:37:38,040
Speaker 2: golf and sophistication around international affairs between the types of

761
00:37:38,120 --> 00:37:41,239
Speaker 2: people who are funding ANDERL and the types of people

762
00:37:41,520 --> 00:37:45,880
Speaker 2: who are skipping class to camp out on campus on campuses,

763
00:37:45,920 --> 00:37:48,600
Speaker 2: I think that there's a lot of people who recognize

764
00:37:49,080 --> 00:37:51,640
Speaker 2: that the United States should have the best technology. The

765
00:37:51,760 --> 00:37:54,880
Speaker 2: only way to credibly deter warfare is to have a

766
00:37:55,040 --> 00:37:58,399
Speaker 2: backstop of credible threat of violence. There is no way

767
00:37:58,520 --> 00:38:01,120
Speaker 2: that you can deter every adversary with the threat of

768
00:38:01,160 --> 00:38:04,799
Speaker 2: a sternly warded letter or this idea that sanctions are

769
00:38:04,840 --> 00:38:07,279
Speaker 2: going to cripple their economy, especially in areas where we

770
00:38:07,320 --> 00:38:10,200
Speaker 2: don't even have the leverage to make that true. I

771
00:38:10,320 --> 00:38:12,360
Speaker 2: think that on the funding side, where we don't have

772
00:38:12,440 --> 00:38:14,399
Speaker 2: any problems, We've got a lot of money in the bank,

773
00:38:14,600 --> 00:38:17,040
Speaker 2: we have a very healthy revenue pipeline. We're on the

774
00:38:17,080 --> 00:38:19,000
Speaker 2: path to being a publicly traded company, and a lot

775
00:38:19,000 --> 00:38:21,320
Speaker 2: of people are really excited about that because ANDROL, in

776
00:38:21,400 --> 00:38:24,080
Speaker 2: addition to building tools that keep our men and women

777
00:38:24,160 --> 00:38:26,200
Speaker 2: on the front line safe, which is something people want

778
00:38:26,239 --> 00:38:29,320
Speaker 2: to be invested in, is also just a good, credible

779
00:38:29,360 --> 00:38:31,759
Speaker 2: business with a really good roadmap that's doing well on

780
00:38:31,840 --> 00:38:34,680
Speaker 2: our existing products, and it's a healthy pipeline of future products.

781
00:38:34,760 --> 00:38:37,160
Speaker 2: We just announced Pulsar, we just showed off some other

782
00:38:37,239 --> 00:38:39,680
Speaker 2: new products like Mencex. We're going to be announcing products

783
00:38:39,719 --> 00:38:41,120
Speaker 2: through the rest of the year. We've got about a

784
00:38:41,200 --> 00:38:44,160
Speaker 2: dozen products that we've publicly announced. We've got another dozen

785
00:38:44,560 --> 00:38:48,120
Speaker 2: that are not even publicly talked about yet, and they're

786
00:38:48,239 --> 00:38:50,960
Speaker 2: of a similar caliber. And I think that our investors

787
00:38:51,000 --> 00:38:54,200
Speaker 2: recognize that perspective and existing I.

788
00:38:54,239 --> 00:38:56,040
Speaker 3: Look forward to you coming back and talking about it

789
00:38:56,080 --> 00:38:59,400
Speaker 3: when they can talk about it publicly but quickly. IPO

790
00:39:00,080 --> 00:39:02,040
Speaker 3: twenty twenty four or twenty twenty five.

791
00:39:03,360 --> 00:39:05,560
Speaker 2: Well, I can almost promise you it won't be twenty

792
00:39:05,640 --> 00:39:07,600
Speaker 2: twenty four. If it was, we'd already have to be

793
00:39:07,680 --> 00:39:09,800
Speaker 2: way down that path. Anderal wants to be a publicly

794
00:39:09,840 --> 00:39:12,759
Speaker 2: trade company for a variety of different reasons. It's something

795
00:39:12,840 --> 00:39:14,880
Speaker 2: that we've wanted to do since the very beginning. You know,

796
00:39:14,960 --> 00:39:17,120
Speaker 2: this is my second company. You might know I started

797
00:39:17,160 --> 00:39:19,560
Speaker 2: a company called Oculus VR when I was nineteen. I

798
00:39:19,680 --> 00:39:21,719
Speaker 2: sold that to Facebook for a few billion dollars. I

799
00:39:21,840 --> 00:39:24,520
Speaker 2: was there for a few years before I was fired,

800
00:39:24,640 --> 00:39:26,640
Speaker 2: and I've decided that I want to go on a

801
00:39:26,719 --> 00:39:29,960
Speaker 2: different path this time, and luckily that aligns with what

802
00:39:30,080 --> 00:39:32,319
Speaker 2: our customers want us to do, what our investors want

803
00:39:32,360 --> 00:39:34,239
Speaker 2: us to do, and I think what the American people

804
00:39:34,280 --> 00:39:36,040
Speaker 2: want to do where they want to be able to

805
00:39:36,320 --> 00:39:38,800
Speaker 2: buy into these companies, not have them operate as private

806
00:39:38,920 --> 00:39:41,360
Speaker 2: entities beyond reach and beyond control.

807
00:39:41,880 --> 00:39:44,120
Speaker 3: I'm a lucky great to sit down with you. Thank you,

808
00:39:44,440 --> 00:39:48,040
Speaker 3: andrewl Founder. This is bruly met technology.

809
00:39:57,440 --> 00:40:05,120
Speaker 2: That's real eating gees and if I sephony of phrases.

810
00:40:06,360 --> 00:40:10,800
Speaker 3: What a song simp Simplicity's delight and was created with

811
00:40:10,960 --> 00:40:13,319
Speaker 3: software from Suno, one of the new crop of AI

812
00:40:13,400 --> 00:40:15,960
Speaker 3: startups focused on basically building tools to automate the music

813
00:40:16,000 --> 00:40:18,880
Speaker 3: making process. But while the AI music hera is creeping

814
00:40:18,960 --> 00:40:20,560
Speaker 3: upon us, not everyone is a fan.

815
00:40:20,960 --> 00:40:21,600
Speaker 4: Just break it all down.

816
00:40:21,600 --> 00:40:24,479
Speaker 3: I believe makes Rachel Mets, who actually is the joy

817
00:40:24,800 --> 00:40:25,319
Speaker 3: behind that.

818
00:40:25,440 --> 00:40:27,600
Speaker 4: Song that you just heard? And Rachel, when am I

819
00:40:27,600 --> 00:40:29,120
Speaker 4: gonna be able to stream it on Spotify?

820
00:40:29,239 --> 00:40:31,400
Speaker 3: And ultimately that is the issue here right that a

821
00:40:31,440 --> 00:40:33,520
Speaker 3: lot of AI made songs are.

822
00:40:33,840 --> 00:40:36,400
Speaker 4: Kind of taking away the business of real artists.

823
00:40:36,120 --> 00:40:39,279
Speaker 11: Who I think it's a little bit it's a little

824
00:40:39,280 --> 00:40:41,640
Speaker 11: bit early to say that definitively, but that is a

825
00:40:41,719 --> 00:40:46,080
Speaker 11: concern absolutely, both of artists that see the technology developing

826
00:40:46,840 --> 00:40:48,440
Speaker 11: of record labels. You know, there are a lot of

827
00:40:48,520 --> 00:40:52,240
Speaker 11: different stakeholders in the music industry, and as AI becomes

828
00:40:52,280 --> 00:40:55,319
Speaker 11: better and better at making music, they have a lot

829
00:40:55,360 --> 00:40:57,520
Speaker 11: of concerns about this that they're increasingly expressing.

830
00:40:57,640 --> 00:40:58,000
Speaker 10: For sure.

831
00:40:58,560 --> 00:41:02,360
Speaker 3: What's interesting is perhaps use Footshina light on Souno, but

832
00:41:02,440 --> 00:41:05,480
Speaker 3: also Udio, which is actually backed by Andrewson Horrace, but

833
00:41:05,520 --> 00:41:07,560
Speaker 3: also some players in the game. I think a common

834
00:41:07,680 --> 00:41:10,440
Speaker 3: is one of the as one of the money behind it,

835
00:41:10,560 --> 00:41:13,680
Speaker 3: as well as United Masters that Steve Stout, So they

836
00:41:13,719 --> 00:41:15,680
Speaker 3: do have backing of some players within music.

837
00:41:16,160 --> 00:41:17,160
Speaker 4: But it looks as though.

838
00:41:17,080 --> 00:41:20,080
Speaker 3: These companies are trying to ensure that you're not able

839
00:41:20,160 --> 00:41:22,840
Speaker 3: to say please make me a song in well the

840
00:41:23,040 --> 00:41:25,479
Speaker 3: essence of Billie Eilish. They are trying to be clever

841
00:41:25,560 --> 00:41:27,959
Speaker 3: about the way in which we basically copy or don't.

842
00:41:29,320 --> 00:41:33,120
Speaker 11: Yeah, I mean they want to position themselves as something

843
00:41:33,200 --> 00:41:36,279
Speaker 11: that anybody can use and I am anybody and I

844
00:41:36,400 --> 00:41:40,080
Speaker 11: can use them to make music. And it is true

845
00:41:40,120 --> 00:41:43,279
Speaker 11: that a very quick process or you can make it

846
00:41:43,320 --> 00:41:44,759
Speaker 11: as long as complicated as you want.

847
00:41:44,800 --> 00:41:47,560
Speaker 2: You can bring your own music to it. So it's

848
00:41:47,719 --> 00:41:48,440
Speaker 2: for anybody.

849
00:41:48,520 --> 00:41:50,960
Speaker 11: It's someone who's a professional musician who wants to augment

850
00:41:51,000 --> 00:41:53,640
Speaker 11: the music making process, or for someone who just wants

851
00:41:53,680 --> 00:41:55,360
Speaker 11: to type in a quick prompt and get in a

852
00:41:55,440 --> 00:41:58,320
Speaker 11: song about the simple pleasures of eating cheese or any topic.

853
00:41:58,560 --> 00:41:58,799
Speaker 2: Really.

854
00:42:00,120 --> 00:42:02,480
Speaker 11: Yes, there are some people in the music industry, such

855
00:42:02,520 --> 00:42:05,560
Speaker 11: as Common. Also will I Am was another person who

856
00:42:05,800 --> 00:42:09,600
Speaker 11: put some money into UDO. So it'll be interesting to

857
00:42:09,680 --> 00:42:13,840
Speaker 11: see where musicians sort of you know, come in in

858
00:42:13,920 --> 00:42:17,000
Speaker 11: the coming months and years, if they're interested in participating

859
00:42:17,040 --> 00:42:20,000
Speaker 11: with these companies and using them, or if they say, hey,

860
00:42:20,080 --> 00:42:22,439
Speaker 11: wait a minute, I don't want you training on my music,

861
00:42:22,600 --> 00:42:23,640
Speaker 11: or maybe a little bit of both.

862
00:42:24,480 --> 00:42:27,200
Speaker 3: I assume, as we've seen with image generation, as we've

863
00:42:27,200 --> 00:42:30,680
Speaker 3: seen with video very briefly Rachel, lawsuits likely.

864
00:42:30,640 --> 00:42:31,160
Speaker 4: To happen here.

865
00:42:32,800 --> 00:42:35,080
Speaker 2: I will yes, I would expect. So.

866
00:42:36,040 --> 00:42:39,920
Speaker 11: I spoke to somebody in the music industry and they

867
00:42:39,960 --> 00:42:41,920
Speaker 11: said that was one of the things they're expecting to

868
00:42:42,000 --> 00:42:45,759
Speaker 11: see happen. They're expecting to see some deals between companies

869
00:42:46,280 --> 00:42:50,560
Speaker 11: and that are building this music making software and record labels,

870
00:42:50,880 --> 00:42:54,919
Speaker 11: and maybe other stakeholders in the coming months, but also

871
00:42:55,080 --> 00:42:57,520
Speaker 11: perhaps some lawsuits. And as we know, the music industry

872
00:42:58,160 --> 00:43:00,920
Speaker 11: has been quite litigious. It has already involved in some

873
00:43:01,040 --> 00:43:04,320
Speaker 11: lawsuits regarding other types of generative AIA companies.

874
00:43:04,440 --> 00:43:06,520
Speaker 3: And look you MG just striking that deal with TikTok,

875
00:43:06,680 --> 00:43:08,879
Speaker 3: looking at how to protect artists versus AI.

876
00:43:09,040 --> 00:43:11,360
Speaker 4: It is going to be something we unpack with your help. Rachel.

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Speaker 4: We thank you so much. Rachel Metz. How does it for?

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Speaker 4: This in edition and Bloomberg Technology. Don't forget to check

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Speaker 4: out our podcast. This is a Bloomberg