WEBVTT - Nvidia, ASML Drive Global Tech Rout, Lyft Buys Into Europe 0:00:00.800 --> 0:00:05.039 From the heart of where innovation, money and power collide 0:00:05.320 --> 0:00:10.600 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.760 --> 0:00:39.239 Caroline Hyde and Ed Ludlow. 0:00:27.320 --> 0:00:30.480 Live from San Francisco. This is Bloomberg Technology coming up 0:00:30.480 --> 0:00:33.640 in Nvidia drives a global route in chip stocks after 0:00:33.720 --> 0:00:38.360 new US government restrictions on tech exports to China. Plus 0:00:38.440 --> 0:00:41.040 Lift buys its way into the European market with an 0:00:41.080 --> 0:00:44.720 eye on rolling out autonomous driving. And we speak to 0:00:44.800 --> 0:00:47.960 the President's Chief Technology Advisor and Director of the White 0:00:48.000 --> 0:00:53.440 House Office of Science and Technology Policy, Michael Kratzios. Again, 0:00:53.640 --> 0:00:56.760 it is the chip sector, semiconductors, where our focus is 0:00:57.280 --> 0:01:01.640 new export controls and license requirements on two big names 0:01:01.640 --> 0:01:06.200 for the export of specific technologies designed for the Chinese market. 0:01:06.400 --> 0:01:08.240 This is the picture at the index level. We're down 0:01:08.280 --> 0:01:11.319 three and a half percent. Clearly some pain across the 0:01:11.360 --> 0:01:14.160 industry that's spreading the key names of this in Video 0:01:14.520 --> 0:01:17.360 and AMD, both of them taking write downs in the 0:01:17.400 --> 0:01:20.039 first quarter. We'll get to the numbers very soon. Elsewhere 0:01:20.319 --> 0:01:23.399 ASML is an earning story out of Europe. It missed 0:01:23.440 --> 0:01:26.240 its bookings by almost a billion dollars and it's saying 0:01:26.480 --> 0:01:29.399 we don't know how to quantify the impact of tariff's 0:01:29.400 --> 0:01:31.800 on our business. Their business. They are the biggest and 0:01:31.840 --> 0:01:34.920 most important maker of the machines that make the chips 0:01:35.160 --> 0:01:38.039 chip making equipment. Again, we will go deep on that 0:01:38.120 --> 0:01:40.360 story in the show. Let's get to our top story 0:01:40.400 --> 0:01:43.520 and Video and AMD have been hit hard by new 0:01:43.640 --> 0:01:48.480 US restrictions on semiconductor exports to China. Bluebow Technology editor 0:01:48.520 --> 0:01:51.720 Michael Shepherd joins us from DC give us the details 0:01:51.760 --> 0:01:54.640 the license requirements and I guess, Michael, what happens next 0:01:54.640 --> 0:01:55.440 for these two names. 0:01:56.720 --> 0:01:59.400 Well, what happened just now is the write downs that 0:01:59.480 --> 0:02:00.760 the company had to report. 0:02:00.880 --> 0:02:02.400 First of all, they are not small. 0:02:02.480 --> 0:02:05.240 In video report out of five point five billion dollar 0:02:05.280 --> 0:02:09.080 dollar charge for the first quarter, AMD eight hundred million, 0:02:09.400 --> 0:02:12.280 and all from these new restrictions that they are now 0:02:12.320 --> 0:02:16.079 facing on the chips that they have designed specifically for 0:02:16.120 --> 0:02:19.160 the Chinese market. And these were designed to comply with 0:02:19.360 --> 0:02:24.520 previous rounds of US restrictions on sales of advanced semiconductors 0:02:24.560 --> 0:02:27.160 to China. The goal for the administration and for the 0:02:27.160 --> 0:02:30.160 prior administration too, has been to try to keep those 0:02:30.200 --> 0:02:33.799 sophisticated semiconductors out of Chinese hands where they can help 0:02:33.840 --> 0:02:38.040 Beijing gain an edge militarily and give Chinese companies perhaps 0:02:38.800 --> 0:02:42.400 a way to gain ground on American hyperscalers, an American 0:02:43.000 --> 0:02:47.359 advantage in artificial intelligence. Now, the catch with these chips 0:02:47.400 --> 0:02:49.880 is that while they have been scaled down our lower 0:02:49.919 --> 0:02:53.200 power for the Chinese market AD, they are also useful 0:02:53.280 --> 0:02:56.359 in inference and this is an emerging area in AI 0:02:56.440 --> 0:03:01.960 where it is helping companies develop models faster and more effectively, 0:03:01.960 --> 0:03:04.200 something that we saw with Deep Seek, and that was 0:03:04.280 --> 0:03:06.560 one of the wake up calls for the Trump administration 0:03:06.720 --> 0:03:07.799 as it took offices. 0:03:07.840 --> 0:03:10.360 I'm sure you'll recall, and we heard Commerce. 0:03:09.960 --> 0:03:12.760 Secretary Howard Lutner articulate. 0:03:12.200 --> 0:03:15.800 This and make clear that restrictions like these would be coming, 0:03:16.200 --> 0:03:19.120 and now we're seeing them today and the companies, of 0:03:19.120 --> 0:03:21.760 course are feeling the pain. And this is compounded, of 0:03:21.800 --> 0:03:24.359 course by all the concerns about tariffs and elsewhere. 0:03:24.360 --> 0:03:27.600 In Bloomberg's Mike Shepherd in Washington, d C. Thank you 0:03:27.720 --> 0:03:30.240 very much. The other big downward pressure on the semiconductor 0:03:30.639 --> 0:03:34.640 space is ASML, the world's biggest chip equipment maker, posting 0:03:34.760 --> 0:03:37.040 orders that missed estimates in a very big way. It 0:03:37.040 --> 0:03:41.120 has dimmed the outlook for the semiconductor sector overall, particularly 0:03:41.160 --> 0:03:45.000 with regards to anxiety about tariffs. Bloomberg's executive editor, Peter 0:03:45.080 --> 0:03:48.000 Elstrom is in London and it's a one billion dollar 0:03:48.040 --> 0:03:51.320 miss basically on bookings. But what accounted for the miss 0:03:51.400 --> 0:03:55.040 and what did ASML say about the impact of tariffs 0:03:55.080 --> 0:03:59.280 principally and efforts by the United States for ASML to 0:03:59.360 --> 0:04:01.640 bring some manufacturing to this country. 0:04:01.640 --> 0:04:06.160 Peter, Yeah, it's a big miss by ASML. And ASML 0:04:06.200 --> 0:04:09.040 of course makes the machines that produce chips for the 0:04:09.160 --> 0:04:12.840 likes of TSMC and Intel and Samsung, so they're kind 0:04:12.840 --> 0:04:16.680 of a bell weather for chip demand in particular. Now, 0:04:16.720 --> 0:04:20.000 the CEO, Christoph Fouquet, was pressed pretty hard on the 0:04:20.040 --> 0:04:22.680 earnings call that we were just listening to now, asking 0:04:22.760 --> 0:04:25.800 questions about what's driving this, what are the implications. One 0:04:25.880 --> 0:04:28.920 key factor is certainly this tariff uncertainty that we're seeing. 0:04:29.520 --> 0:04:32.240 It's not exactly clear what kind of demand is going 0:04:32.320 --> 0:04:35.000 to be generated in some of these areas, including artificial 0:04:35.000 --> 0:04:38.920 intelligence and other areas. Another key question is whether tariffs 0:04:38.920 --> 0:04:41.640 are going to be levied on the machines that ASML 0:04:41.760 --> 0:04:44.760 makes as they're getting shipped into the United States. The 0:04:44.760 --> 0:04:47.880 Biden administration now the Trump administration both want to build 0:04:47.960 --> 0:04:51.360 up the chip capacity within the United States, but that's 0:04:51.360 --> 0:04:54.159 going to be more difficult if TSMC and Intel and 0:04:54.200 --> 0:04:57.200 other companies have to pay more for these machines. At 0:04:57.200 --> 0:04:59.359 the same time, you're seeing some weakness in some of 0:04:59.400 --> 0:05:02.279 the key players here. Intel, of course, is struggling quite 0:05:02.279 --> 0:05:04.960 a bit. Even Samsung Electronics now is having a bit 0:05:04.960 --> 0:05:07.839 of a difficult time building up its capacity. Has slowed 0:05:07.880 --> 0:05:10.480 things down, so you don't want to add additional costs 0:05:10.480 --> 0:05:12.039 on top of that. Just to give a sense of 0:05:12.080 --> 0:05:16.440 the scale, ASML's machines can go for three hundred and 0:05:16.440 --> 0:05:18.719 eighty million dollars, if you put a terrif on top 0:05:18.760 --> 0:05:20.719 of that, in the range that the Trump administration is 0:05:20.760 --> 0:05:23.120 talking about, it could be ninety five million dollars in 0:05:23.160 --> 0:05:23.919 tariff costs. 0:05:23.960 --> 0:05:24.159 Now. 0:05:24.200 --> 0:05:26.600 Fo K was very clear to say that the customers 0:05:26.640 --> 0:05:28.400 are going to bear the brunt of those costs. It's 0:05:28.400 --> 0:05:31.320 not going to be ALML themselves. But even if the 0:05:31.320 --> 0:05:33.520 customers bear those costs, it may slow them down a 0:05:33.520 --> 0:05:36.360 bit in terms of buying these machines and then deploying them. 0:05:36.520 --> 0:05:38.520 They may have to think twice about how quickly they're 0:05:38.520 --> 0:05:41.039 going to move ahead in building the kind of capacity 0:05:41.080 --> 0:05:44.039 that the administration actually does want in the United States. 0:05:44.800 --> 0:05:48.640 Bloomberg's Pizza Elstrom in London, Thank you very much. Denny 0:05:48.680 --> 0:05:51.320 Fish is a tech investor with skin in the game. 0:05:51.480 --> 0:05:55.359 His funds at Janis Henderson count Nvidia and ASML among 0:05:55.400 --> 0:05:59.800 its top holdings. There's also TSMC, Broadcom, some of the hyperscalers. 0:06:00.440 --> 0:06:04.920 Let's get the investors take on technology, export controls and tariffs. 0:06:05.240 --> 0:06:08.240 Good morning, Denny Fish. Were you ready for those headlines 0:06:08.240 --> 0:06:10.960 on in video and AMD. 0:06:11.120 --> 0:06:15.159 No. I wasn't, particularly because there was reporting just a 0:06:15.200 --> 0:06:18.200 couple of days ago that they had come to an 0:06:18.240 --> 0:06:21.800 agreement the administration within video that they weren't going to 0:06:21.839 --> 0:06:24.800 have these restrictions. Obviously, that was just a report, but 0:06:25.400 --> 0:06:27.279 it definitely took the market by surprise. 0:06:28.960 --> 0:06:32.760 I want to show a chart which is the proportion 0:06:32.960 --> 0:06:37.200 of Nvidia's revenue that comes from China, and clearly the 0:06:37.320 --> 0:06:40.839 chart tells a clear story. In twenty twenty two, China 0:06:40.920 --> 0:06:45.720 revenues around twenty six percent, currently twenty twenty five with 0:06:45.880 --> 0:06:49.359 down the thirteen percent. I think many except that this 0:06:49.520 --> 0:06:52.200 is headed towards single digit because of the impact of 0:06:53.000 --> 0:06:56.560 technology export controls. Does that matter to you as an 0:06:56.600 --> 0:06:59.919 Nvidia investor, Denny, do you sort of worry about that 0:07:00.040 --> 0:07:02.480 and lay awake at night thinking about in Vidia's business 0:07:02.480 --> 0:07:04.000 in China? 0:07:04.400 --> 0:07:07.760 Well, two parts of that question. One is whether it 0:07:07.839 --> 0:07:10.160 matters to me as an investor. In two, I lay 0:07:10.160 --> 0:07:13.880 awake thinking about China. I think the important thing is 0:07:13.960 --> 0:07:17.160 it's actually good to just get it out of the model. Okay, 0:07:17.280 --> 0:07:19.680 So I mean we're kind of wiping it clean. We're 0:07:19.720 --> 0:07:22.560 taking a clean cut to estimates. And to your point, 0:07:22.880 --> 0:07:26.200 the revenue contribution from China has come down materially over 0:07:26.240 --> 0:07:30.000 the last few years. I think something else that's important 0:07:30.280 --> 0:07:33.320 is that you know, there's something that's it's called the 0:07:33.360 --> 0:07:36.840 diffusion Rule that is supposed to come into effect in 0:07:36.880 --> 0:07:39.600 the month of May, and effectively with that is that 0:07:39.680 --> 0:07:42.840 just puts a quota on the number of GPUs that 0:07:42.880 --> 0:07:47.240 certain countries can actually buy. Now, one might think that 0:07:47.280 --> 0:07:51.280 potentially the diffusion rule could be relaxed somewhat. 0:07:51.080 --> 0:07:52.480 That could benefit in video. 0:07:53.640 --> 0:07:57.360 The other thing that's just kind of puzzling about all 0:07:57.400 --> 0:08:00.880 of this is that in some ways this makes no 0:08:01.000 --> 0:08:01.720 sense at all for. 0:08:01.680 --> 0:08:03.880 The administration to do. And why is that. 0:08:04.600 --> 0:08:08.840 Huawei already produces a chip it's somewhat comparable to the 0:08:09.040 --> 0:08:12.320 H twenty that is actually the customized chip that Nvidia 0:08:12.360 --> 0:08:16.160 has been selling in to China, and as a result, 0:08:16.320 --> 0:08:19.520 they're just giving the market to Huawei. And so they're 0:08:19.520 --> 0:08:24.320 penalizing a US company by you know, restricting a chip 0:08:24.360 --> 0:08:28.800 that's not even that competitive relative to a locally supplied chip. So, 0:08:29.360 --> 0:08:32.160 you know, we've already thought about this, you know, pretty extensively. 0:08:32.400 --> 0:08:34.840 We didn't know if we would get a full cut, 0:08:35.520 --> 0:08:39.000 but I think, you know, the direction of travel was clear. 0:08:39.960 --> 0:08:42.959 Contribution from China was going to go way down, and 0:08:43.160 --> 0:08:46.840 you know, because we're still supply constrained, and Nvidia has 0:08:46.880 --> 0:08:50.080 the benefit of being able to read direct wafers to 0:08:50.200 --> 0:08:53.640 other areas where they can actually sell more powerful chips 0:08:53.640 --> 0:08:55.080 and chips with higher gross margins. 0:08:57.200 --> 0:09:00.840 The goal of this administration appays to be to shift 0:09:00.920 --> 0:09:03.840 mores of the United States, be it localized fabrication of 0:09:03.880 --> 0:09:09.440 the core chip assembly, whatever it may be. And so 0:09:09.600 --> 0:09:12.440 the companies will face the higher cost of doing business 0:09:12.480 --> 0:09:16.080 in this country, or they will face twenty thirty five 0:09:16.120 --> 0:09:19.960 percent net tariff somewhere else. What are the pros and 0:09:20.040 --> 0:09:23.200 cons of just going with what this administration was and saying, Okay, 0:09:23.320 --> 0:09:24.559 we're going to do this in America. 0:09:26.559 --> 0:09:30.440 Well, the pros are that to the extent that we 0:09:30.600 --> 0:09:35.440 actually have the capacity to manufacture leading edge. 0:09:35.360 --> 0:09:37.199 Chips, that's a good thing. 0:09:37.320 --> 0:09:39.800 And it's a good thing because those are the types 0:09:39.840 --> 0:09:42.640 of chips that are used in our most important industries 0:09:43.040 --> 0:09:47.360 for national security and for maintaining our competitive advantage globally 0:09:48.080 --> 0:09:52.320 as we you know, race towards artificial general intelligence. The 0:09:52.400 --> 0:09:57.040 cons are it is more expensive, but nonetheless, you would 0:09:57.080 --> 0:09:59.880 think that the productivity gains that we get in agg 0:10:00.240 --> 0:10:03.840 it from deploying AI probably more than offsets what the 0:10:03.880 --> 0:10:07.560 aggregate costs would be for manufacturing the chips in the 0:10:07.600 --> 0:10:10.080 United States. And I just say, you know, thank goodness, 0:10:10.080 --> 0:10:13.800 TSMC put a shovel in the ground, you know several 0:10:13.880 --> 0:10:17.240 years ago in Arizona that they're actually in a position 0:10:17.320 --> 0:10:20.680 now for companies like Nvidian a MD to actually announce 0:10:20.679 --> 0:10:24.400 that they're going to be producing leading edge two nanometer 0:10:24.520 --> 0:10:29.120 chips with TSMC in Arizona as well as configuring full 0:10:29.200 --> 0:10:31.320 systems in the United States. 0:10:31.320 --> 0:10:34.640 From a manufacturing standpoint, a story. 0:10:34.320 --> 0:10:37.640 We put heavy emphasis on this week. So in video 0:10:37.720 --> 0:10:39.839 is your top holding across a couple of funds, right, 0:10:39.880 --> 0:10:42.960 TSMC is always in there? You said, Thank goodness, that's 0:10:43.000 --> 0:10:46.800 the case basically, But how does your your thinking now change? 0:10:47.280 --> 0:10:47.480 Right? 0:10:47.520 --> 0:10:51.120 Do you stick with this this idea that capital expenditures 0:10:51.520 --> 0:10:54.240 will continue to grow in twenty five, twenty six, twenty seven, 0:10:54.440 --> 0:10:57.679 the hyperscalers will continue to take from Nvidia or are 0:10:57.679 --> 0:11:00.599 you now going to adjust where you put your end assist. 0:11:00.400 --> 0:11:03.880 Any Well, we take the data as it comes. 0:11:04.360 --> 0:11:07.520 But most importantly, I think if you just look at 0:11:07.520 --> 0:11:11.840 the most recent comments out of Nvidia where they just 0:11:11.880 --> 0:11:15.880 had their GtC conference, if you actually parsed through the 0:11:15.880 --> 0:11:21.600 comments from ASML today and you pars through the comments 0:11:21.640 --> 0:11:27.120 that we've heard from hyperscalar CEOs, we don't see signs 0:11:27.160 --> 0:11:32.600 of a slow down in AI capex and so now 0:11:32.640 --> 0:11:36.920 the growth may slow, but nonetheless the signs still support 0:11:37.360 --> 0:11:41.800 healthy growth in AI capex. Well, like I said, we'll 0:11:41.840 --> 0:11:45.320 take the data as it comes. But ASML was still 0:11:45.360 --> 0:11:49.439 optimistic about AI. And you know, it's really the lagging 0:11:49.559 --> 0:11:51.959 edge stuff, you know, analog chips and so forth that 0:11:52.040 --> 0:11:54.560 go into industrial and auto and things like that that 0:11:54.720 --> 0:11:57.920 still you know, continue to be soft. And I will 0:11:57.960 --> 0:12:00.199 remind you, you know, I know this is different with 0:12:00.240 --> 0:12:04.120 the tariffs and the geopolitical situation, but just rewind the 0:12:04.200 --> 0:12:08.320 clock one year and asml same thing happened, they missed bookings, 0:12:08.559 --> 0:12:10.679 the stock was down, and then all they because the 0:12:10.679 --> 0:12:14.240 bookings are really lumpy, and then bookings just reaccelerated throughout 0:12:14.280 --> 0:12:16.480 the year and they're doing some really cool stuff. And 0:12:16.520 --> 0:12:18.120 you know, one of the things they talked about is, 0:12:18.320 --> 0:12:19.920 you know, one of the reasons that you know they 0:12:19.920 --> 0:12:23.080 can continue to drive higher pricing for their EUV and 0:12:23.559 --> 0:12:27.680 high NA EUV is because they're starting to do what's 0:12:27.720 --> 0:12:30.640 called single layer and what that effectively does it increases 0:12:30.640 --> 0:12:33.400 the throughput, it's more valuable, and therefore they can charge 0:12:33.440 --> 0:12:35.520 a higher price that. 0:12:35.600 --> 0:12:38.520 A technology charge a higher price. Danny Fisher, Jannis Henderson 0:12:38.559 --> 0:12:40.160 is great to have you back on the program. Thank 0:12:40.160 --> 0:12:42.760 you very much. Now coming up here on Bloomberg Technology, 0:12:42.840 --> 0:12:45.760 list is expanding outside of the US and Canada. We 0:12:45.840 --> 0:12:50.640 have CEO David Risha on the company's European acquisition. That's next. 0:12:50.679 --> 0:13:08.560 This is Bloomberg Technology. Some deal news. Lift has agreed 0:13:08.559 --> 0:13:11.400 to buy the European Multi Mobility and taxi ailing app 0:13:11.440 --> 0:13:14.400 Free Now for about one hundred and ninety seven million dollars. 0:13:14.480 --> 0:13:17.560 It marks its first global expansion beyond the US and Canada. 0:13:17.840 --> 0:13:21.280 Lift CEO David Risha joins US. Now, I've been using Uber, 0:13:21.360 --> 0:13:23.720 your main competitor in Europe for a really long time. 0:13:23.880 --> 0:13:25.680 I've been going in taxis in Europe for a really 0:13:25.720 --> 0:13:29.680 long time. Why acquire free now and not just launch 0:13:29.760 --> 0:13:32.440 the Lift app in that jurisdiction. 0:13:32.440 --> 0:13:35.719 Because Frenal is a great company that's got great relationships 0:13:36.000 --> 0:13:39.440 all across Europe in the really important taxi industry. I mean, look, 0:13:39.480 --> 0:13:41.440 so Lift, as you know ed you've been following us 0:13:41.440 --> 0:13:43.800 for a while. We're in a stronger position than we've 0:13:43.840 --> 0:13:46.520 ever been. We're picking riders up faster than we've ever 0:13:46.559 --> 0:13:49.079 picked them up before. Drivers are making billions on the 0:13:49.080 --> 0:13:51.760 platform in the US and Canada, and so now's the 0:13:51.800 --> 0:13:53.480 right time for us to go global. And what's great 0:13:53.520 --> 0:13:56.440 about it is it expands our market, doubles our market, 0:13:56.480 --> 0:13:58.640 and it allows us to plug into, as you say, 0:13:58.800 --> 0:14:01.160 the taxi world, which is a huge, huge part of 0:14:01.160 --> 0:14:02.680 the European mobility scene. 0:14:03.240 --> 0:14:04.800 Tomorrow. I think I'm right in saying it's your two 0:14:04.880 --> 0:14:09.400 year anniversary at Lyft, good memories and you have fixed 0:14:09.440 --> 0:14:11.760 the finances of that company to an extent. But the 0:14:11.880 --> 0:14:15.160 data is so key, right, Uber has what one million 0:14:15.400 --> 0:14:18.000 drivers in Europe and I think free now has about 0:14:18.000 --> 0:14:22.000 one hundred and fifty thousand registered taxi drivers nine cities. 0:14:22.520 --> 0:14:24.600 How do you bridge the gap? Are you confident you 0:14:24.680 --> 0:14:26.080 can bridge the gap? Yeah? 0:14:26.160 --> 0:14:28.520 I am the goodness So free Now is a great 0:14:28.520 --> 0:14:30.320 company and one of the things that makes them so 0:14:30.400 --> 0:14:34.040 strong is they really understand the local dynamics, market by 0:14:34.080 --> 0:14:38.120 market by market. Here's that thing. The mobility market in 0:14:38.120 --> 0:14:41.040 Europe for this this kind of you ride heiling is 0:14:41.040 --> 0:14:42.960 about forty billion euros. 0:14:43.920 --> 0:14:45.920 Half of that are offline taxes. 0:14:46.040 --> 0:14:48.480 This are literally still people calling up a taxi company 0:14:48.480 --> 0:14:50.920 and saying, come take me to the airport, come take me, 0:14:51.000 --> 0:14:52.160 I'm going on a business trip. 0:14:52.200 --> 0:14:52.800 Whatever it is. 0:14:52.920 --> 0:14:55.920 So well, it's true, there are other companies there. Free 0:14:55.920 --> 0:14:58.480 Now is the leader in the taxi space. And remember 0:14:58.600 --> 0:15:00.640 is you know, taxi is kind of an elevat experience 0:15:00.680 --> 0:15:02.480 to a lot of Europe think of the London Blackpam. 0:15:02.600 --> 0:15:05.240 So we think that the company is really well positioned 0:15:05.480 --> 0:15:07.320 to really sort of you know, continue to grow and 0:15:07.360 --> 0:15:08.720 take over the much bigger space. 0:15:09.320 --> 0:15:12.000 But it is a company that's only recently broken even 0:15:12.680 --> 0:15:15.240 it's had historic losses. What are you modeling for in 0:15:15.320 --> 0:15:17.520 terms of what it adds to your top line and 0:15:17.560 --> 0:15:19.200 bottom line and how immediately. 0:15:19.440 --> 0:15:22.360 Yeah, so it's a profitable company. It hasn't been a 0:15:22.360 --> 0:15:24.880 billion dollars in bookings, which is significant. Now I've left, 0:15:24.920 --> 0:15:27.160 of course, has sixteen billion in booking. So you know, 0:15:27.200 --> 0:15:29.240 there's a lot of growth, you know, ahead of both 0:15:29.240 --> 0:15:31.680 of us. But it'll be financially creative for us, which 0:15:31.720 --> 0:15:33.880 is wonderful. And I think as we you know, they've 0:15:33.880 --> 0:15:36.800 been owned by Mercedes and BMW, two great sort of 0:15:36.840 --> 0:15:40.360 storied bottom manufacturers, but I think combining with US is 0:15:40.360 --> 0:15:42.680 going to give them some new energy, some new expertise 0:15:43.240 --> 0:15:44.160 to really allow. 0:15:44.000 --> 0:15:47.640 Both of us to grow. There is zero mention in 0:15:47.680 --> 0:15:52.240 the release about autonomous driving, and every cell side note 0:15:52.280 --> 0:15:55.440 about this deal says it's your plan to roll out 0:15:55.480 --> 0:15:59.200 autonomous driving in Europe with those two OEMs that you 0:15:59.320 --> 0:16:01.600 just mentioned. Yeah, so here's how we. 0:16:01.520 --> 0:16:03.520 Think about autonomous as we've said, I mean, first of all, 0:16:03.520 --> 0:16:05.760 of course it's happening in the US. 0:16:05.840 --> 0:16:06.360 We're actually a. 0:16:06.360 --> 0:16:09.160 Little bit further ahead Europe a little bit not so much. 0:16:09.360 --> 0:16:11.480 One of the great things free Now has is well too, 0:16:11.680 --> 0:16:15.240 they've got great relationships with European regulators, and they've got 0:16:15.280 --> 0:16:18.000 great fleet management and as you and I have discussed before, 0:16:18.200 --> 0:16:21.400 fleet management is so important to autonomous So yeah, we 0:16:21.400 --> 0:16:23.440 think it sets this up really well. Let's be clear, 0:16:23.480 --> 0:16:25.480 this is going to be years down the road, but 0:16:25.520 --> 0:16:28.200 it's a really important part of the overall strategy for 0:16:28.280 --> 0:16:29.320 being a global player. 0:16:30.680 --> 0:16:33.360 Two years in you've done some M and A, will 0:16:33.360 --> 0:16:34.280 you do more M and A? 0:16:34.480 --> 0:16:35.120 And where. 0:16:37.040 --> 0:16:38.880 I mean, never say never, but this really is our 0:16:38.920 --> 0:16:40.960 focus right now, right, I mean, the good news is, 0:16:41.040 --> 0:16:43.400 you know again free Now is a great, strong company 0:16:43.440 --> 0:16:44.080 and we've got. 0:16:43.880 --> 0:16:44.760 So much to build on. 0:16:44.920 --> 0:16:48.120 So we're going to be really focused on our European expansion, 0:16:48.160 --> 0:16:50.920 obviously making sure it's a big success. And then who knows, 0:16:51.240 --> 0:16:52.920 we'll talk later about someone else. 0:16:54.360 --> 0:16:57.200 Engine capital activists, investor they want to change your board. 0:16:57.360 --> 0:16:59.800 Your reaction please, I mean, we. 0:17:00.000 --> 0:17:03.000 Interact with shareholders all the time and you know, listen 0:17:03.040 --> 0:17:05.960 to their feedback. Take it seriously. You know, there's a 0:17:06.000 --> 0:17:08.880 whole process for dealing with activist investors that were involved 0:17:08.880 --> 0:17:11.399 in but probably speaking if you look at what shareholders want, 0:17:11.600 --> 0:17:14.480 you know, capital return. We're giving out five hundred million 0:17:14.520 --> 0:17:18.320 dollars in a share buyback. Growth, we're growing, We're now expanding, 0:17:18.359 --> 0:17:20.320 We're strengthening our business by going international. 0:17:20.400 --> 0:17:21.159 I think we're really. 0:17:21.040 --> 0:17:22.920 Well positioned to address all of the issue. 0:17:22.920 --> 0:17:25.480 Have you that shareholders bring Sorry to interrupt, David. Have 0:17:25.600 --> 0:17:28.400 you spoken to them about the free now deal since 0:17:28.440 --> 0:17:31.800 it happened? No, Okay, that's kind of interesting. Final questions 0:17:31.800 --> 0:17:37.520 on technology Atlanta technology partnerships, MAME Mobility operationally give me 0:17:37.560 --> 0:17:38.359 an update please. 0:17:38.520 --> 0:17:40.520 Yeah, so you're referring to the partnership we have with 0:17:40.600 --> 0:17:45.080 MAME Mobility and Autonomous Vehicle group or company that's on 0:17:45.119 --> 0:17:47.600 track for this summer. So super excited to launch right 0:17:47.600 --> 0:17:49.320 in the middle of downtown Atlanta. 0:17:50.359 --> 0:17:52.439 On track for this summer, being commercially on track or 0:17:52.440 --> 0:17:53.720 this is a kind of toe in the water. 0:17:54.400 --> 0:17:55.480 Well, it's on track. 0:17:55.320 --> 0:17:59.560 For us to start operationally this summer in Atlanta and 0:17:59.560 --> 0:18:01.359 then you know it'll grow from there. But first we've 0:18:01.359 --> 0:18:03.280 got to get you know, riders in the cars, and 0:18:03.320 --> 0:18:04.600 that'll be sometime. 0:18:04.320 --> 0:18:07.080 This summer because I have the term to do so 0:18:07.200 --> 0:18:10.800 two years in What would you score yourself or grade 0:18:10.800 --> 0:18:13.359 yourself on the job you've done as the Lift CEO. 0:18:13.720 --> 0:18:15.800 Look, I am a self critical person. 0:18:15.920 --> 0:18:16.200 I am. 0:18:16.240 --> 0:18:17.840 I guess maybe one of the things that I do 0:18:17.920 --> 0:18:19.879 is always look for the next thing. But I do 0:18:19.960 --> 0:18:21.840 have to say I'm proud of what we've accomplished as 0:18:21.840 --> 0:18:24.320 a team over two years, you know, getting to profitability, 0:18:24.640 --> 0:18:27.760 seven hundred million dollars plus in free cash and maybe 0:18:27.760 --> 0:18:31.000 most importantly, picking up riders faster than ever and drivers 0:18:31.000 --> 0:18:32.600 making more on the platform than ever. So if I 0:18:32.600 --> 0:18:34.520 look at it from the customer's point of view, we're 0:18:34.520 --> 0:18:36.960 doing super well. It's up to other people to tell 0:18:37.000 --> 0:18:38.320 me how I'm doing as a. 0:18:38.280 --> 0:18:40.919 CEO, and the street gives you a lot of credit 0:18:40.960 --> 0:18:43.320 for that. M and A maybe they didn't see coming 0:18:43.359 --> 0:18:46.719 so much. Maybe we'll see some more Lift CEO David Risha, 0:18:47.080 --> 0:18:49.160 thank you for joining us here on Bloomberg Technology. Now 0:18:49.160 --> 0:18:52.920 coming up, Americans are still using Chinese e commerce apps 0:18:52.920 --> 0:18:55.879 to shop cheap alternatives to some high end brands. We're 0:18:55.920 --> 0:18:58.479 going to drive into the surge in sales for Timu 0:18:58.720 --> 0:18:59.280 and Sian. 0:19:00.560 --> 0:19:20.240 This is Bloomberg Technology. 0:19:23.200 --> 0:19:26.639 A trade war won't stop Americans from shopping on Chinese apps. 0:19:26.680 --> 0:19:29.760 Revenue surge for both she and and Timu this month 0:19:30.040 --> 0:19:33.920 as US shoppers anticipate price increases due to tariffs. Bloomberg's 0:19:33.920 --> 0:19:36.680 Lily Maya joins US and covers the retail Beat. It's 0:19:36.840 --> 0:19:39.560 really interesting data. A lot of people in my world 0:19:39.720 --> 0:19:42.399 use both of those apps. I don't what are we learning. 0:19:42.960 --> 0:19:45.680 Yeah, it seems like these apps are seeing a lot 0:19:45.680 --> 0:19:49.040 of success and people are going to them as tariffs 0:19:49.080 --> 0:19:51.120 are starting to loom. 0:19:52.880 --> 0:19:55.280 The eco data kind of comes in here right when 0:19:55.320 --> 0:19:58.399 you think about tariffs, we think about passing on the 0:19:58.400 --> 0:20:01.600 costs of the consumer through your beat, through the tech 0:20:01.600 --> 0:20:03.720 companies that are in the ecomma space. What are we 0:20:03.800 --> 0:20:07.119 learning about the consumer and that march data? Yeah, absolutely so. 0:20:07.160 --> 0:20:10.240 It seems like the consumer is looking to spend right now. 0:20:11.119 --> 0:20:13.359 The EGO data showed a lot of spending, and it 0:20:13.400 --> 0:20:15.800 seems like people might be stocking up or buying now 0:20:15.920 --> 0:20:17.960 before prices might get more expensive. 0:20:19.359 --> 0:20:23.639 Lily, you cover retail, specialty retail in particular. What are 0:20:23.640 --> 0:20:27.160 you learning about tariffs? Like, how do companies really think 0:20:27.200 --> 0:20:29.000 about what happens next? They even know? 0:20:30.040 --> 0:20:32.960 Yeah, so a lot of companies are doing different things. 0:20:33.320 --> 0:20:35.359 A lot of the companies I cover report in the 0:20:35.400 --> 0:20:37.880 next month, so that will be really interesting to hear, 0:20:38.320 --> 0:20:42.240 you know, what they're looking to say to investors and shareholders. 0:20:42.320 --> 0:20:43.840 But it seems like a lot of people are in 0:20:44.040 --> 0:20:46.440 kind of a wait and see mode. They're not exactly 0:20:46.480 --> 0:20:48.879 sure how tariffs are going to impact their business, and 0:20:48.880 --> 0:20:50.720 they're trying to figure that out. 0:20:51.720 --> 0:20:53.560 Bloomers really might great to have you on here on 0:20:53.600 --> 0:20:56.720 Bloomberg Technology. Thank you very much. Now, coming up, Mark 0:20:56.800 --> 0:21:01.639