Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and EVA though in San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: Tesla plans for twenty five billion dollars in additional spending
Speaker 3: this year to support Elon Maask's AI ambitions.
Speaker 4: And Intel shares jump out of the company pledges to
Speaker 4: support Musk's advanced chip manufacturing project terror Fat.
Speaker 3: And we'll bring on more tech earnings and tech news.
Speaker 3: We'll hear from the CEOs of Lift, Service Now and
Speaker 3: IBM and First.
Speaker 5: For the last day this week together in New York, Ed.
Speaker 4: We look at what these markets are up to, and
Speaker 4: we're actually managing to cling on to some sort of
Speaker 4: green in the Nasdaq one hundred less so for the
Speaker 4: NASDAK more broadly, and that we are seeing pressure more
Speaker 4: on the investor mindset with oil climbing up again five
Speaker 4: times set high. We're above one hundred and two on rent.
Speaker 4: The geopolitical context remains. It impacts certain earnings like with
Speaker 4: Service Now for example, but we're all tracked on earnings today.
Speaker 3: Yeah, it's been exhausting, frankly, being on Eastern time and
Speaker 3: covering Tesla's earnings in particular, right, really simple, storing massive
Speaker 3: commitment to spending a lot of money to actually get
Speaker 3: going on the two big projects, rob Taxi and Optimus,
Speaker 3: the humanoid robot. The headline capex twenty five billion dollars
Speaker 3: for this year, but actually the shares it down significantly,
Speaker 3: not just because of that, but because of the commentary
Speaker 3: they will enter negative free cash flow for the balance
Speaker 3: of this year. That's a lot of money stuff, but
Speaker 3: there's some execution as well. Let's get to Bloomberg's Crage Trudel,
Speaker 3: who leads our coverage of auto's around the world.
Speaker 2: That's where we probably start.
Speaker 3: Right in the quarter, things look really good, and then
Speaker 3: Tesla told us Craig we are going to spend in
Speaker 3: a multi year investment cycle, and things got a little
Speaker 3: bit sour.
Speaker 6: Yeah, I think, you know, part of what you know
Speaker 6: made the numbers look so good was maybe there was
Speaker 6: a moment where everyone wondered whether or not Tesla was
Speaker 6: actually going to go forward with this sort of high
Speaker 6: wire act of you know, spending the twenty billion dollars
Speaker 6: plus in capex that was outlined just a few months ago,
Speaker 6: you know, for them to actually only have you know,
Speaker 6: roughly two and a half billion dollars of CAPEX in
Speaker 6: the first quarter, that that sort of sent a signal
Speaker 6: potentially that spending wasn't going to be quite at the
Speaker 6: pace that was flagged. Instead, a Musk hops on the
Speaker 6: call and says, oh, no, we're going ahead with that,
Speaker 6: and then some and I think that does give some
Speaker 6: people pause when you have a car business that, yes,
Speaker 6: is looking a little bit better than it was a
Speaker 6: year ago, but a year ago it was really in
Speaker 6: a brutal place.
Speaker 2: Hold that's graphic on the screen. Just let me say
Speaker 2: something real quick.
Speaker 3: Carry The reason at first thing looks so rosy is
Speaker 3: that CAPEX in the quarter was basically not trending toward
Speaker 3: the twenty billion for the full year.
Speaker 2: Anyway, everyone was like, oh, they're underspending.
Speaker 3: And then it got confusing because they were like, wrong,
Speaker 3: going to spend a lot more to take it.
Speaker 4: Away, And I Musk really tried to articulate Craig why
Speaker 4: that spending is necessary. We're going to get to terra
Speaker 4: fab and chips in a moment, but with you, I
Speaker 4: want the underlying fundamentals of where he's spending on cybercab
Speaker 4: what about the humanoid robot focus. I mean, this is
Speaker 4: what investors care about, less about car sales, more about AI.
Speaker 7: Yeah.
Speaker 6: I think that's right, and I think there's been honestly
Speaker 6: a lot of patients with being able to sort of
Speaker 6: look past the idea that a lot of these projects
Speaker 6: have not earned meaningful return and you know, may not
Speaker 6: for the time being. But you know, we've gotten to
Speaker 6: a place now where this is a company that you know,
Speaker 6: is primarily a car business where a couple of years
Speaker 6: now they have actually seen decline in their sales and
Speaker 6: decline in their position in their most important segment. And
Speaker 6: we don't have clear indications of when exactly, you know,
Speaker 6: this robo taxi project is actually going to be meaningful.
Speaker 6: We had, if anything, a bit of incremental indication that
Speaker 6: maybe next year, but that's you know, a bit far off.
Speaker 6: And then also some indications too that the to miss
Speaker 6: robot may not be you know ready, I'm the timelineers
Speaker 6: as previously flagged, so some negative indicators from that perspective.
Speaker 4: As well, shock me create Trudell slower timeline Bloomberg's crety Dow.
Speaker 4: We thank you so much on all things, cars, fundamentals,
Speaker 4: robots more in Tesla, though.
Speaker 5: When in La.
Speaker 4: Mosk has planned to spend three billion dollars to build
Speaker 4: a research facility in Texas part of that ambitious chip
Speaker 4: manufacturing project dubbed Terrifat bringing Intel along for the ride.
Speaker 4: Bloombgs I King in San Francisco could really articulate why
Speaker 4: three billion?
Speaker 5: Is this some sort of like pilot that.
Speaker 4: They do to see whether they can actually make the chips?
Speaker 8: Yeah? I mean this is a long established practice in
Speaker 8: the semikinductor industry where you make what's called a pilot line,
Speaker 8: and this is your way of showing, well, does my
Speaker 8: manufacturing technology work and do my designs work? And you're
Speaker 8: kind of doing it on the cheap three billion dollars,
Speaker 8: you know. I know that's a lot to me and
Speaker 8: maybe not much to you, But in the chip industry
Speaker 8: it really isn't very much at all. It's about ten
Speaker 8: percent of what it would cost to build, you know,
Speaker 8: a leading edge, full sized fab.
Speaker 3: Last night, the news about Elon Musk's ship ambitions came
Speaker 3: in the Q and a portion of the earnings call
Speaker 3: and I needed some help. I turned to you for
Speaker 3: that help to understand the pilot line bit that you
Speaker 3: just explained, but he.
Speaker 2: Dropped a big piece of news.
Speaker 3: He said that the initiative will use Intel's fourteen A process.
Speaker 3: What is Intel's fourteen A process? Why did Intel shares
Speaker 3: jump when that headline hit?
Speaker 8: Yeah, this process that we're talking about, this is basically
Speaker 8: the recipe that they used to create semiconductors, and they're
Speaker 8: looking for outside users of that. Basically, they don't have
Speaker 8: enough of their own work, their own demand for their
Speaker 8: own designs to be able to fill the factory, so
Speaker 8: they need outside customers. So this raised the possibility that
Speaker 8: guess what, you know, Elon Inc. Is going to be
Speaker 8: a customer of Intel in some way. We don't know
Speaker 8: whether he's just going to license that and do it himself,
Speaker 8: or whether he's going to actually help Intel fill its fabs.
Speaker 8: And I hopefully we'll find out later today when Intel.
Speaker 3: Bloomberg Zy and King again really jumped in and helped
Speaker 3: with understanding that when the news broke in Tesla surnings
Speaker 3: call last night, there's a by the way coming the
Speaker 3: Philadelphia Semiconductor Index or SOCKS, that's the main gauge of
Speaker 3: chip stocks in the United States and actually around the world.
Speaker 3: But the US sister Shares is up for a sixteenth
Speaker 3: straight session, sixteen straight days of games, which is a record,
Speaker 3: and that's astonishing when you think about the direction of
Speaker 3: travel in newsflow the war in Iran. We've talked about
Speaker 3: how the war in Iran has impacted the chip supply chain.
Speaker 2: Carrow, but it's not even slowing down. We're up almost
Speaker 2: three percent in the session.
Speaker 4: That is just a phenomenal piece of data analysis that
Speaker 4: you bring time and time again from Bloomberg. But what's
Speaker 4: more important is also just how we navigate this and
Speaker 4: what it means for the likes of Tesla and Intellers.
Speaker 4: They try to bring chips into just about everything. This
Speaker 4: is about AI and the use cases. Pierre Ferugu of
Speaker 4: New Street Research says Tesla has a strong advantage versus
Speaker 4: peers to quote win in order on robot taxing humanoid robots.
Speaker 4: He maintains a BIKE rating on the stock for the
Speaker 4: six hundred dollars price target.
Speaker 5: You join us.
Speaker 4: Now, how important is terrifab to that vision you have
Speaker 4: on winning the AI race for Tesla.
Speaker 7: It's a good question, Caroline.
Speaker 9: The tarafab is like an enhancer for Tesla and so
Speaker 9: SpaceX it's really like a player that is I would
Speaker 9: say five to ten years out and probably closer to
Speaker 9: ten than five. And the idea is that now that
Speaker 9: we know compute is everything, you can achieve miracles with compute,
Speaker 9: the key is going to become how can you deploy
Speaker 9: compute faster than your competitors and at a lower unique costs?
Speaker 9: And what he LEARNMSK is doing today with Tesla and SpaceX,
Speaker 9: it's real project.
Speaker 7: Sitting between the.
Speaker 9: Two, he gets started to be in a position to
Speaker 9: manufacture in how so you know, vertico like integration is
Speaker 9: actually a major factor of course savings in an industry
Speaker 9: where everybody has very high gorss margins. And he's going
Speaker 9: to control the space at which he can actually build
Speaker 9: chips and as he's planning to throw them into space
Speaker 9: and to deploy data centers in space, and he has
Speaker 9: like a pretty large rocket to do.
Speaker 2: Yeah, that's j.
Speaker 3: And forgive me for interrupting you, but what you're saying
Speaker 3: doesn't match what Elon Musk is saying, right because he
Speaker 3: got asked this on the call, are you doing terror fab?
Speaker 3: The initiative to manufacture chips at scale because of unit economics,
Speaker 3: and his response was no. He consistently says, because I
Speaker 3: don't believe that TSMC and Samsung can match the supply
Speaker 3: that Elon Inc. Needs to fulfill those long term ambitions.
Speaker 9: Yeah, I think it's okay to say that today. But
Speaker 9: the unity going to of TSMC probably ter a FAB
Speaker 9: is never going to beat them. But TSMC is now
Speaker 9: charging on average sixty five and growing person ghost margins.
Speaker 9: So if you have your own manufacturing capabilities in a house,
Speaker 9: whether you work magic against TSMC on you need economics
Speaker 9: or not, you are actually working magic on your own
Speaker 9: unit economics.
Speaker 4: Therefore the efficiency gain. Look, all of this needs to
Speaker 4: eventually be put to work. We need to vindicate a
Speaker 4: twenty five billion dollar CAPEX expenditure.
Speaker 5: Yet is it vindicated?
Speaker 4: How if we're already seeing Optimus perhaps behind schedule. If
Speaker 4: we're already questioning, really how quickly regulators can allow cyber
Speaker 4: cab and the autonomous vision on the road, Does it
Speaker 4: match the spending in the here and now?
Speaker 9: It all depends, Caroline, on the timeframe you set for
Speaker 9: yourself to put into perspective. Twenty five billion dollars of
Speaker 9: CAPEX if you include FAB, about half that money is
Speaker 9: going to be spent. I think on compus to be
Speaker 9: in the same league as the frontier players in.
Speaker 7: AI, and you need AI for FSD, you need.
Speaker 9: AI for Optimus, and on top of that you have
Speaker 9: the partnership with Grog of course with XAI. Then the
Speaker 9: second aspect is Teslas this year is set to generate
Speaker 9: but fifteen billion dollars of firm operating cash throw so
Speaker 9: you know, the negative fakesue of Tesla this year might
Speaker 9: be ten billion dollars if they manage to spend fast
Speaker 9: and of the twenty five billion, which might be a challenge.
Speaker 9: And they have a balance a cash balance studio of
Speaker 9: about forty five billion dollars, So we're talking thing that
Speaker 9: at the scale of Tesla is actually very reasonable. Then,
Speaker 9: in terms of how do you get a return on
Speaker 9: that robot XI, there is a broad consensus that once
Speaker 9: it is you know, really scaled out, it's a multi
Speaker 9: trillion dollar opportunity. So I mean, if the cost to
Speaker 9: get into the race and win it is twenty five
Speaker 9: million dollars, answer, it's a good price. Yeah, And then
Speaker 9: you have Optimus a million optimists a year. How much
Speaker 9: value is there in that? Another thing is that it's
Speaker 9: going to take many years before we get right. So
Speaker 9: it's a long it's a long duration investment.
Speaker 2: You know.
Speaker 3: Twenty five billion dollars is the big number, and later
Speaker 3: in the show will explain why it's the big number. Pierre,
Speaker 3: did you wake up this morning in the camp of
Speaker 3: which some of your colleagues are in that there is
Speaker 3: further evidence now that eventually SpaceX will merge with Tesla.
Speaker 7: I won't tell you.
Speaker 9: I think it's going to become more and more challenging
Speaker 9: not to do it. For sure, a terrafab project like
Speaker 9: the pilot line at Tesla in the first large scale manufacturing,
Speaker 9: the faber at SpaceX, the cross accounting and you know
Speaker 9: pricing between the two is going to become difficult. Yesterday
Speaker 9: learn explained how you know optimist Roberts will remain connected
Speaker 9: to the cloud. If they remain if they need very
Speaker 9: large cloud blow it might be sphase data and third eployments, right,
Speaker 9: and so there would be a question on how much
Speaker 9: to slapez for like space on on Starship. So there
Speaker 9: are a lot of good reasons for the merger to happen. Now,
Speaker 9: you know, does that mean it's going to happen. I
Speaker 9: wouldn't bridge that gap yet.
Speaker 4: Yeah, fair good of New Street research or is a
Speaker 4: joy having you on the show. Thank you for the analysis.
Speaker 4: Now we are also watching shares of other earnings that
Speaker 4: become thick and.
Speaker 5: Fast over in Europe.
Speaker 4: Look how noc here our performs that more than five
Speaker 4: percent again, and AI an infrastructure story in many ways
Speaker 4: for Nokia that manages to see European stocks on the
Speaker 4: higher side for its particular play.
Speaker 5: But boy are we in the eye of the software
Speaker 5: storm right now.
Speaker 2: Nouchi I'm the.
Speaker 4: M eight percent Service now down the most in its history,
Speaker 4: and that's after we once again have to our CEOs
Speaker 4: to prove a negative and they're finding it very hard
Speaker 4: to do so. They had twenty two percent growth in
Speaker 4: subscription and still the stock dives. We're going to be
Speaker 4: hearing more from the CEO of service now later this hour.
Speaker 4: Let's around with all of that. But ed what else
Speaker 4: we got coming up?
Speaker 3: Yeah, it's going to talk about k Hinnicks posting a
Speaker 3: sharp jump in quorly profit on booming AI memory demand.
Speaker 2: But how long is that going to last?
Speaker 7: This is Bloomberg Tech.
Speaker 4: Let's look at Korean trading now, sk Heinex flat, but
Speaker 4: the South Korean semiconductive manufacturer actually reported.
Speaker 5: A fivefold jump in quarterly profit.
Speaker 4: But the results are instead leaving investors questioning actually the
Speaker 4: longevity of the AI boom. Bloomberg Asia stocks reporter who's
Speaker 4: here in New York with SCFPN Lee can articulate why
Speaker 4: the stock was under pressure with such a phenomenal set
Speaker 4: of profit.
Speaker 10: Yeah, absolutely, it was an absolutely stunning quarter. But also
Speaker 10: you have to note that the shares have rise in
Speaker 10: ninety percent so far just here, and if you look
Speaker 10: at the past here the share has rose more than
Speaker 10: the rise of more than five four on. The position
Speaker 10: is pretty crowded. So even even the strong earnings can
Speaker 10: trigger sell on the news. But I think investors wants
Speaker 10: more evidence to see that earning is more structural than cyclical,
Speaker 10: and that's going to take more than a couple of months.
Speaker 10: So if you look at the memory ship in the past,
Speaker 10: there has been bloom and bus cycle and even though
Speaker 10: people agree that this is the supercycle that's percent unprecedented,
Speaker 10: this is still subject to the could be subject to
Speaker 10: the downtren This is a trillion dollar question. When that
Speaker 10: downturn could start.
Speaker 3: We're talking about the lucrative market for high bandwidth memory.
Speaker 3: I always think about it as the funnel. It allows
Speaker 3: the GPU to take the data quickly and process it quickly.
Speaker 3: So you got sk Heinex, You've got Samsung and then
Speaker 3: Micron in the United States. Beyond the numbers, was there
Speaker 3: evidence that sk is winning a little bit in that
Speaker 3: market of HBM.
Speaker 10: Yeah, Actually, esk Heinezys, that's just the biggest, the supplier
Speaker 10: of the HPM. It has about sixty percent market share
Speaker 10: last year. But the rivals Samsung and Micron are catching up,
Speaker 10: especially Samsung. But what's interesting is that because a lot
Speaker 10: of these memory names have been diversifying, reallocating their production
Speaker 10: resources to HBM, we're seeing stortages in the traditional M
Speaker 10: and NAN that's giving pricing power to dis memory makers
Speaker 10: and that's why we're seeing the strong numbers this quarter
Speaker 10: for s k heinezin.
Speaker 2: Those of you.
Speaker 3: Only great to have you on Blombo Tech. Thank you
Speaker 3: very much. A lot of news out there today, Cara.
Speaker 4: Now is a lot from Asia. In fact, let's go there.
Speaker 4: It's time for talking tech. First up, soft Bank is
Speaker 4: seeking a ten billion dollar loan secured by its shares
Speaker 4: in OPENINGI. It'scording to sources, the Japanese conglomerate has been
Speaker 4: piling on debt as Fano Massiosti's son seeks the position
Speaker 4: himself really is a lynchpin in the global AI boom
Speaker 4: because of insuring SoftBank's debt.
Speaker 5: Well, that's jumped after that news came out.
Speaker 4: Plus ten Cent has unveiled a major upgrade to its
Speaker 4: foundational AI model, with major advances in areas from complex
Speaker 4: musing in particular to coding.
Speaker 5: It's the first big test for the.
Speaker 4: Company since it recruited a top researcher from Openingi. The
Speaker 4: model has been made available via a suite of ten
Speaker 4: Cent products, and TSMC plans to hold off on adopting
Speaker 4: ASML's most cutting edge machine for chip production until twenty
Speaker 4: twenty nine because it looks to save money. That's a
Speaker 4: major blow the Dutch maker of some inconductive manufacturing equipment.
Speaker 4: Now TSMC is its largest customer, according to Bloomberg supply
Speaker 4: chain data. And by the way, look, each of these
Speaker 4: advanced lithography machines cost over four hundred million dollars a
Speaker 4: piece if you're looking at the top end.
Speaker 3: At the top end, a lesson we learn on the
Speaker 3: show the other day. A lot of people are out
Speaker 3: shopping right now and coming up. Lift is claiming its
Speaker 3: territory in London, Europe's largest righte hailing market. David Risher,
Speaker 3: he's the CEO of Lyft. He's been shopping and buying
Speaker 3: up some interesting companies. We're going to discuss that next.
Speaker 3: This is Bloomberg Tech.
Speaker 4: Lift is doubling down on this international expansion with a
Speaker 4: deal to acquire gets UK business. This marks Lift's third
Speaker 4: acquisition in just a year in a move to really
Speaker 4: catch up with its large arrival Uber. David Rischer, CEO
Speaker 4: of Lyft, joins us to share more in the company's
Speaker 4: growth strategy. The growth strategy is international growth day and
Speaker 4: what was it about gets UK optionality here that you liked?
Speaker 11: So it is the big guy when it comes to
Speaker 11: London's black cabs, and London's black cabs are awesome. I suspect, Carolyn,
Speaker 11: you've taken one or two in your life and you
Speaker 11: know they're amazing, right, So it's the best way to
Speaker 11: get around London. And that's the idea is we are
Speaker 11: a customer obsess company. We wanted to make sure that
Speaker 11: we could increase our footprint in London. This roughly doubles
Speaker 11: the size of our rides in London, which is wonderful.
Speaker 11: And I think some like seventy five to eighty percent
Speaker 11: of London cabs who have an app are going to
Speaker 11: have access to Lift customers over time. So it's a
Speaker 11: great win win.
Speaker 4: Now, David, you know, I think the best way to
Speaker 4: get around any city is to bike, and I'm pleased
Speaker 4: that you're also doing the bike optionality the suntime they're
Speaker 4: bikes you have in London. Just what does this mean
Speaker 4: in terms of capital intensiveness? What does this mean in
Speaker 4: terms of investment you need to make in these new cities.
Speaker 11: Yeah, so it's not a very big capital raise. I
Speaker 11: mean a nice thing about the sort of let's say
Speaker 11: traditional ride share business, the one that we're in is
Speaker 11: we don't own a lot of assets, right, the London
Speaker 11: cabbes own their own cars. So really what this does
Speaker 11: is it allows caves taxi cab drivers who are as
Speaker 11: you know, brilliant, to sort of make even more of
Speaker 11: their time. Right, They're going to have more customers thanks
Speaker 11: to the Lift app and our promotion of the get
Speaker 11: by Lift app. So anyway, that'd be great. They also
Speaker 11: have a big business to business audience. They actually do
Speaker 11: work with a VBC, they do work with the economists,
Speaker 11: they do work with the Royal Albert Hall. So they've
Speaker 11: got a really nice stable base that we can build on.
Speaker 11: And then as mobility changes over time, becomes more autonomous
Speaker 11: and so forth, it just gives us a bigger footprint
Speaker 11: in the UK.
Speaker 3: I want to understand, David, how this works in practice.
Speaker 3: In Western Europe, the taxi cab is part of the culture,
Speaker 3: and in London, of all places, the black cab is
Speaker 3: at the heart of what it is to be a
Speaker 3: Londoner or a visitor to that city. So how does
Speaker 3: the consumer respond to a big American tech company coming
Speaker 3: in and bringing a brand like get into its fold?
Speaker 11: I mean, I hope, well, right, what we hope to
Speaker 11: do is bring the same customer obsession that we bring
Speaker 11: here every single day in North America, you know, all
Speaker 11: across the world. As you guys know, we acquired Free
Speaker 11: Now last year. They also have a significant presence in London,
Speaker 11: across all of Europe really and we've seen great growth
Speaker 11: with that brand and with our writers there because they're
Speaker 11: now seeing you know, an even better experience. So look,
Speaker 11: that's our general strategy is you know, customer obsessions with
Speaker 11: drives profitable growth. And I just love to your point
Speaker 11: the fact that we're going to be with the London
Speaker 11: cab system in such a deep way because it's frankly
Speaker 11: going to teach us something about great service. London cabies
Speaker 11: are amazing in that way, and hopefully it'll allow us
Speaker 11: to bring even better technology and sort of invest more
Speaker 11: in the whole marketing of the idea of taking a
Speaker 11: taxi when you're in London.
Speaker 3: David, you've joined us regularly on Bloomberg Tech, and you've
Speaker 3: been generous with your time in explaining how you've come
Speaker 3: into Lyft over now almost three years. I think right
Speaker 3: and put your print on it. The first part of
Speaker 3: the story was getting to be a cash flow positive,
Speaker 3: but you are in this kind of m and a
Speaker 3: strategy and so could you just explain how going shopping
Speaker 3: and acquiring companies in different markets is going to impact
Speaker 3: the final financial health of the business and free cash
Speaker 3: flow in particular for sure.
Speaker 11: So yeah, it was actually my three year anniversary just
Speaker 11: last week, ed, so three years, congratulation and thank you,
Speaker 11: loving every minute of it. Look, if you think of
Speaker 11: the stages, you're right. At first we were losing money.
Speaker 11: We were losing cash. Now we're making money. We're profitable
Speaker 11: quarter after quarter after quarter. We're throwing off over a
Speaker 11: billion dollars in cash. So what that allows us to
Speaker 11: do now is to grow through acquisition, exactly to your point.
Speaker 11: We can take that cash and put it to use.
Speaker 11: How are we growing We're growing largely internationally. Why because
Speaker 11: that improves our sort of footprint and over time improves
Speaker 11: our economics because this is a scale business. And then
Speaker 11: if you look at the next stage, of course, with
Speaker 11: self driving cars, you know, again having a large footprint
Speaker 11: and having a large scale, frankly, is going to matter
Speaker 11: even more. So this is the sort of journey we're on.
Speaker 11: It's a step by step journey. But I love where
Speaker 11: we're going, and I love the fact that both our
Speaker 11: financial results and our customer results are improving every day
Speaker 11: as a result.
Speaker 4: How does the profitability focus fit into the robotaxi and
Speaker 4: autonomous focus. I mean, I can tell you Black Cavies
Speaker 4: aren't going to love that in many ways.
Speaker 2: David, Well, so I think you're talking about two things.
Speaker 11: I think you're right anytime you've got a big shift,
Speaker 11: you have a set of people who are doing something
Speaker 11: today and maybe they're worth they won't be doing that tomorrow.
Speaker 11: That's something we're very very focused on in LYFT. I
Speaker 11: can give you a very specific example. We're now rolling
Speaker 11: out autonomous cars in Nashville with our partner, Weimo over
Speaker 11: the course of this year, and we just announced that
Speaker 11: half of the employees in our very large new depot
Speaker 11: in Waimo. That will excuse me, in Nashville are drivers.
Speaker 11: Half the employees are drivers, right, So part of it
Speaker 11: is we have to help that transition happen when it
Speaker 11: comes to profitability. Look, self driving cars over time, frankly,
Speaker 11: should improve the economics of bride share.
Speaker 7: It should lead to.
Speaker 11: Because you know, they don't have a lot of the cast,
Speaker 11: they don't have the same insurance cast and so forth.
Speaker 11: But that's going to take a long long time. I
Speaker 11: think right now it's really kind of early days for that.
Speaker 11: We're just trying to figure out a way to kind
Speaker 11: of make the transition in a very very thoughtful way.
Speaker 3: David Rischer, CEO of Lyft, back in San Francisco. I'm
Speaker 3: here in New York. We're grateful to have you all
Speaker 3: the same. They're coming up. We're going to get back
Speaker 3: to today's big story, and that is Tesla. The stock
Speaker 3: is down because of the massive commitment to spend money
Speaker 3: on the big projects, AI, robotics and Robotaxi, all of
Speaker 3: which we just discussed a little bit with Lift CEO.
Speaker 3: So my last day in New York City, but there's
Speaker 3: so much more to do. We'll be right back. It
Speaker 3: is halftime. This is Bloomberg Tech. Welcome back to Bloomberg Tech.
Speaker 3: Our top story is Tesla's earnings. It's a story about
Speaker 3: a massive investment cycle, and it's time for the big number.
Speaker 3: The big number is twenty five billion dollars. That is
Speaker 3: Tesla's capex commitment for the full fiscal year twenty twenty six.
Speaker 3: So you're asking why is it a big number and
Speaker 3: why are the shares down? Well, the most that Tesla's
Speaker 3: ever spent in a full year is about eleven billion dollars.
Speaker 3: That was in twenty twenty four. But now we know
Speaker 3: about the robot line, the Optimist line going up in Fremont,
Speaker 3: the bigger one going up in Texas, how they're going
Speaker 3: to expand cybercab production, they're going to need the funds,
Speaker 3: and when it comes to chips, A lot of people's
Speaker 3: reaction to this was that twenty five billion is a
Speaker 3: big number, but it's a drop in the ocean for
Speaker 3: the industry.
Speaker 2: What's up?
Speaker 5: Have a quick look at what's happening with Microsoft.
Speaker 4: There are some news that they're going to be offering
Speaker 4: voluntary retirement some seven percent of the workforce on the
Speaker 4: US workforce.
Speaker 5: As it currently stands.
Speaker 4: It's voluntary buyouts to just a small percentage. The coustock
Speaker 4: is currently under pressure by two and a half percent.
Speaker 4: But once again, this is going to fit into an
Speaker 4: AI narrative where people can do more with AI productivity tools,
Speaker 4: and therefore, how does that affect the labor market as
Speaker 4: of now, Microsoft saying they're going to be offering voluntary
Speaker 4: retirement to seven percent United States workforce ed.
Speaker 5: But let's go back to Tesla as well.
Speaker 4: Within all of this, because that is the earnings we're
Speaker 4: focusing on. Investors maybe betting less on EV sales and
Speaker 4: on AI and robotics these days, but vehicles are still
Speaker 4: for the moment, the company's bread and butter.
Speaker 5: So side back into.
Speaker 4: Testla's quarterly performance from that angle. Jessica Coltell's hit this
Speaker 4: Edmund's head of insights, so actually better return to some
Speaker 4: sort of growth, particularly I was interested to see in
Speaker 4: Europe as well as in US and Asia.
Speaker 12: Yeah, I mean that really is their core business. And
Speaker 12: I mean I think what we're seeing as an EV market,
Speaker 12: it's not very you know, it's not very linear in
Speaker 12: terms of growth. We're going to see starts and stops
Speaker 12: and all those type of things like we've seen here
Speaker 12: in the US, especially in regards to the federal tax credit.
Speaker 12: But this market is going to continue to grow, So
Speaker 12: it's not as if it's hit the end of a
Speaker 12: runway or even close to the end of the runway.
Speaker 12: It's just beginning. But it's gonna look a little lumpy,
Speaker 12: like to get to full electrification, which I think most
Speaker 12: automakers are on the same page thinking that is really
Speaker 12: the end goal here.
Speaker 4: I think the end goal as well in the stops
Speaker 4: and the starts. How much has that to do with
Speaker 4: the will.
Speaker 12: Well, right now, it's tricky. I mean, we're not necessarily
Speaker 12: seeing a massive consumer just push to interest right now
Speaker 12: because of gas prices. And it's interesting because in twenty
Speaker 12: twenty two and Russia and via to Ukraine. We actually
Speaker 12: saw a much stronger traffic push towards EV's online then
Speaker 12: we're seeing right now. And I think a lot of
Speaker 12: that has to do in general affordability. Because gas prices
Speaker 12: are high, especially markets where Tesla does very well, like California,
Speaker 12: It's not high enough to make people want to buy
Speaker 12: forty fifty thousand dollars vehicle. So it's a bit of
Speaker 12: a different paradigm right now than we've seen in past
Speaker 12: gas spikes in twenty twenty two and even in two
Speaker 12: thousand and.
Speaker 3: So this is the difficulty in understanding, Jessica. This is
Speaker 3: what the CFO Vi Bettanaya has said. Whilst the recent
Speaker 3: increasing gas prices has had a positive impact on the
Speaker 3: order rate, this improvement started before the uptrending gas prices.
Speaker 3: And basically what he goes on to say is that
Speaker 3: Tesla credit themselves with having a broader.
Speaker 2: Offering and a more affordes offering.
Speaker 3: Try and wag through the data and see if you
Speaker 3: agree with Tesla's CFO.
Speaker 12: Well, they have an affordable offering and as far as
Speaker 12: EV's go, right, I mean, and they have I think vehicles,
Speaker 12: particularly the model why that match a lot of consumer preferences.
Speaker 12: It's not a random sports car or you know, large
Speaker 12: sedan or anything like that that matches up. And Tesla
Speaker 12: hasn't been pretty elastic in terms of pricing. They've drop prices,
Speaker 12: they have raised prices. They do a lot to match demand,
Speaker 12: so I wouldn't necessarily say that their you know, sales
Speaker 12: were skyrocketing before it gas prices. But I think what
Speaker 12: they do well is they're well known. They saw increases
Speaker 12: share in California sales in the first quarter. It was
Speaker 12: a smaller pie, but they got a bigger part of
Speaker 12: it because I think people also know their brand too,
Speaker 12: so I mean they're synonymous with evs, so people just
Speaker 12: looking for an EV's they think of Tesla, so they
Speaker 12: have an advantage there.
Speaker 3: I was talking a minute ago about the big number,
Speaker 3: which was capital expenditures guide for the year. The small
Speaker 3: number for me was the FSD subscription take right, So
Speaker 3: they ended last year with one point one million FST
Speaker 3: subscribers and it's gone up a little bit to one
Speaker 3: point two eight million. It's only available in the United
Speaker 3: States and some limited parts of Europe. But if you
Speaker 3: think about how many Teslas there are on the roads
Speaker 3: around the world. That does to me seem like the
Speaker 3: small number.
Speaker 12: I mean, it really is, and I think a part
Speaker 12: of it is the consumer acceptance and understanding of what
Speaker 12: it is, the safety of it all. I think it's
Speaker 12: something that's exciting that people like it. They're thinking, oh,
Speaker 12: this card pubs can help me drive.
Speaker 2: That's fantastic.
Speaker 12: I can focus on other things, but it really still is.
Speaker 12: You know, it's largely unknown to I did the majority
Speaker 12: of consumers, and Tesla does have a lot of more
Speaker 12: mainstream consumers. They sure they had some early adopters, but
Speaker 12: now they're getting mainstream books that are maybe not as
Speaker 12: TechEd forward as you know, as we all think, yeah.
Speaker 5: Just how does Elol must tackle that?
Speaker 4: Because look, his huge pay package is actually linked to
Speaker 4: adoption of FSD, and in many ways you sort of
Speaker 4: apologize for the small numbers and tells us about.
Speaker 13: Yeah.
Speaker 12: I mean, I think it's something that it's going to
Speaker 12: take time, it's going to have to grow. I mean,
Speaker 12: they have a lot of hands in different parts at
Speaker 12: this point, so I'm not sure how he's going to
Speaker 12: accomplish it all. But I think, you know, obviously education
Speaker 12: is important thing. How this is going to fit the
Speaker 12: regulation because there's any time there's any sort of crash,
Speaker 12: I mean, the news is definitely more proportionate than what
Speaker 12: you'd see any place else. And I just think that
Speaker 12: you're going to have to work on the public acceptance
Speaker 12: of these type of technologies. I mean, people are very weary.
Speaker 12: We just heard about AI replacing jobs. It just all
Speaker 12: becomes a bit of a not a scary black box.
Speaker 12: There's something to that effect to a lot of consumers.
Speaker 3: I guess the last headline that we can give our
Speaker 3: audience is that must said that by the end of
Speaker 3: this year in the us FSD unsupervised. In other words,
Speaker 3: eyes off the road, hands off the road. We'll see
Speaker 3: if that happens. Jessica cole Well, head of Inside at Evans,
Speaker 3: thank you very much. Another top story, and we're turning
Speaker 3: to another of Musk companies. SpaceX is playing a bigger
Speaker 3: role in President Trump's Golden Dome project previously known. According
Speaker 3: to sources, SpaceX is among a group of companies developing
Speaker 3: the operating system underpinning the Missile Defense System. Let's get
Speaker 3: the latest with Bloomberg's Mike Shepherd, who's in DC. Let's
Speaker 3: start just with the details Bloombergs reporting because this is
Speaker 3: an important.
Speaker 2: Story it is.
Speaker 14: It's important because Golden Dome is one of the President's
Speaker 14: signature initiatives when it comes to protecting the US against
Speaker 14: the ballistic missile attack.
Speaker 2: It's worth one hundred and.
Speaker 14: Eighty five billion dollars over the course of the program
Speaker 14: so far, and SpaceX will be providing, together with other companies,
Speaker 14: a critical component in of it. Think of it as
Speaker 14: the glue that holds all these networks together. It will
Speaker 14: be essentially the operating system that helps the govern military
Speaker 14: operations once this thing gets up off the ground. And
Speaker 14: it is an expansion of the role that SpaceX had
Speaker 14: already been playing in the project. It had been building
Speaker 14: satellites through its Starlink platform, and it had also been
Speaker 14: developing a military communications network through it star Shield technology,
Speaker 14: and that is a classified version of Starlink that offers encryption,
Speaker 14: especially for military use.
Speaker 4: At MIKE, Where are we with the vision and then
Speaker 4: the action towards Golden Dome, and really what the other
Speaker 4: puzzle pieces are that need to be put in place, Well.
Speaker 14: Caara, if you want to think of it as a puzzle,
Speaker 14: there's still a lot of pieces to the side looking
Speaker 14: to be placed in the right spots. There is a
Speaker 14: long way to go before this thing actually becomes in
Speaker 14: place and an effective defense against the kinds of missile
Speaker 14: threats that have been warned about for years from China,
Speaker 14: from Russia, and now even from Iran. There are questions
Speaker 14: about the extent to which US adversaries could try to
Speaker 14: strike the homeland here. And this is the reason why
Speaker 14: the US has moved in this direction, and it has
Speaker 14: turned to one of its most reliable space contract director
Speaker 14: of SpaceX, to really help get this up off the ground.
Speaker 14: And SpaceX is working with a couple of other signature
Speaker 14: names who have taken on increased roles working with the
Speaker 14: government that includes indoorial industries and palunteer technologies as well
Speaker 14: on developing this communications and this operating system that we've
Speaker 14: been reporting on today.
Speaker 3: You know that that last point is so crucial. SpaceX
Speaker 3: has this legacy with the US government which is about
Speaker 3: ten to fifteen years in duration, hundreds of millions billions
Speaker 3: in contracts NASA and the Defense apparatus. But if you
Speaker 3: look at those other names and orill Impulse, we're talking
Speaker 3: much smaller contracts. Right in the context of this broader story.
Speaker 2: That's right.
Speaker 14: They are much smaller contracts, and yet they are part
Speaker 14: of this larger ecosystem ed And when you turn the
Speaker 14: focus back to SpaceX also we do see this company
Speaker 14: on the move. They are getting ready for an IPO
Speaker 14: later this year that could value the venture at almost
Speaker 14: two trillion dollars, and they are also making moves in
Speaker 14: other directions to shore up other parts of the product
Speaker 14: line that could help in.
Speaker 2: This venture too.
Speaker 14: They have reached an agreement or at least to have
Speaker 14: the rights to acquire Cursor AI for up to sixty
Speaker 14: billion dollars, and the idea would be to use its
Speaker 14: coding and debugging ability to help the XAI segment of
Speaker 14: SpaceX in its development and advancing its products. And you
Speaker 14: could see very easily integrating those artificial intelligence capabilities as
Speaker 14: well into this kind of operating system we've just been
Speaker 14: talking about.
Speaker 5: Mergs. Mike Shepherd from Golden don't we appreciate it? Thank you?
Speaker 5: Now coming up easier to use AI tools.
Speaker 4: Well, they've sparked an increase in abusive imagery online. That's
Speaker 4: according to the difficulties of investigators. More on that research next,
Speaker 4: this to bring back tech child pornography, and it's always
Speaker 4: been a major scooch of the but a surge of
Speaker 4: abusive material created with AI tools, it's making it hard
Speaker 4: for investigators to pass the real from the fake, and
Speaker 4: that can be the difference in knowing which cases need
Speaker 4: urgent attention Nimos. Kurt Wagner, one of the report reporters
Speaker 4: on Today's Big Take, joins us, now is a difficult
Speaker 4: read whether you're a parent or not, Kurt, But really
Speaker 4: this is about prioritization. This is about a lack of
Speaker 4: resource for many who are trying to understand which child
Speaker 4: to go out there and help and which one is
Speaker 4: actually an AI generated piece of content.
Speaker 2: Caroline. We spent six months working on this.
Speaker 15: We talked to dozens of law enforcement officials who are
Speaker 15: at the frontline specifically of child's safety crimes, and what
Speaker 15: they told us is that because of AI, the number
Speaker 15: of reports and tips they have to sift through is
Speaker 15: jumping exponentially. And when you are sifting through, as you
Speaker 15: point out, and not sure whether the image or the
Speaker 15: video you're looking at depicts a real child in physical
Speaker 15: danger or something that has been totally fabricated by an
Speaker 15: LA or some other generative AI tool. They spend a
Speaker 15: lot of time basically tracking down leads that don't lead
Speaker 15: to actually helping a child endanger. And the fear is
Speaker 15: that the more this happens, the more there is a
Speaker 15: risk that a real child who's being harmed is going
Speaker 15: to get overlooked because everyone's busy focused on the AI
Speaker 15: generated stuff.
Speaker 3: There is a mechanism here, so when a technology company
Speaker 3: or a social media company finds that content that we're
Speaker 3: talking about.
Speaker 2: They report it.
Speaker 3: They are required to report it to the National Center
Speaker 3: for Missing and Exploited Children NCMEC, and from that there
Speaker 3: is other data available. What does the data tell that
Speaker 3: organization curve.
Speaker 15: So ideally, when a big tech or media company finds
Speaker 15: this and reports it ed, they would include a lot
Speaker 15: of detail about the image or video, right, maybe an
Speaker 15: IP address, a location, you know, how it was created,
Speaker 15: or what types of tools were used, and then Nick
Speaker 15: make that organiation you mentioned, They receive all of these
Speaker 15: from all around the country and then redistribute them out
Speaker 15: to state experts state investigators.
Speaker 2: The problem is that a lot.
Speaker 15: Of the tips that are coming into Nickmick, especially those
Speaker 15: that are AI related, do not have any of that
Speaker 15: necessary data to actually go do anything right, there is
Speaker 15: no IP address, there is maybe no location, and so
Speaker 15: Nick Mick is being flooded with these tips and doesn't
Speaker 15: have anything to do with them. And so we've seen
Speaker 15: Congress actually make a big deal about this. There is
Speaker 15: just an investigation by Senator Grassley of Iowa where he's
Speaker 15: trying to challenge these companies to report more useful information
Speaker 15: to Nickmick, because if they just get a video or
Speaker 15: photo but nothing else with it, there's no way that
Speaker 15: they can go and actually try to stop a crime.
Speaker 4: Kurt, I think the numbers are important here and they're astounding.
Speaker 4: Last year the Clearinghouse received one and a half million
Speaker 4: reports or suspected see some with ties to AI tools.
Speaker 4: But the previous year it had just been sixty seven
Speaker 4: thousand reports, and in twenty twenty three it's four thousand,
Speaker 4: seven hundred, which is all too many, but one and
Speaker 4: a half million to just talk us through the sun
Speaker 4: exponential growth that you're talking about and the ways in
Speaker 4: which people are trying to tackle it, Yeah.
Speaker 15: I mean less than five thousand two years ago, now
Speaker 15: one point five million in just two years, and growing
Speaker 15: and expected to continue to grow.
Speaker 2: And when you think about why that is.
Speaker 15: I mean, you just have to look around at the
Speaker 15: ease of use of these AI tools that have come up. Right,
Speaker 15: all of these companies are spending tens of billions of
Speaker 15: dollars on data centers and products, trying to move as
Speaker 15: fast as humanly possible to get these AI tools, the
Speaker 15: generative AI tools, into the hands of everyday consumers. Of course,
Speaker 15: the downside being that that also helps the bad guys.
Speaker 15: And so while AI related reports are still a small
Speaker 15: sliver of the total number of reports that people get,
Speaker 15: you can see Caroline how it's growing exponentially and expected
Speaker 15: to continue.
Speaker 3: So Oka, you said at the beginning of our conversation,
Speaker 3: you spent six months reporting this as part of the
Speaker 3: reporting course, had responses from a range of technology and
Speaker 3: actually in particular AI companies. We've been showing those responses
Speaker 3: on air throughout the conversation. But how would you summarize
Speaker 3: the industry's response, either directly to your reporting or to
Speaker 3: the issue that you that you are talking about.
Speaker 15: A lot of the big companies are telling us that, hey,
Speaker 15: we have safeguards in place, right, we don't allow if
Speaker 15: someone goes to chat GPT and tries to role play
Speaker 15: with a child, which is something that now happens. They
Speaker 15: say that they have alert setup that they can detect
Speaker 15: that report it, get it taken down. I think the issue,
Speaker 15: ed is when you think about open source models. What
Speaker 15: we've heard is that some of the open source technology
Speaker 15: gets used. People download it to their personal device and
Speaker 15: then they train it to create more child abuse material.
Speaker 15: And that is where the technology can get really dangerous
Speaker 15: because people are able to tailor it towards a specific
Speaker 15: thing that they want to create without any oversight from
Speaker 15: the companies themselves.
Speaker 7: And so when you're.
Speaker 15: Using a mainstream product owned and operated by the company,
Speaker 15: there tends to be more guardrails. But when people are
Speaker 15: able to kind of take the stuff, put it on
Speaker 15: the personal device, and manipulate it themselves, that's where you know,
Speaker 15: these tools can become very powerful in a bad way.
Speaker 2: Bloomberg Kirtwagner, thank you. Now.
Speaker 3: Coming up, Warner Brothers shareholders approved the one hundred and
Speaker 3: ten billion dollar sale to Paramount, but they don't sign
Speaker 3: off on everything. We have the details from the investor meeting.
Speaker 3: Next this is Bloomberg Tech. Texas Instruments is up almost
Speaker 3: nineteen percent, on track for its best day since two
Speaker 3: thousand at a record high, the biggest maker of analog chips,
Speaker 3: massive demand from all the industrial machinery that goes into
Speaker 3: building a data center. That's the story. That's one of
Speaker 3: the best performers today.
Speaker 4: I've got the reverse, the worst performer on the S
Speaker 4: and P five hundred, in fact, the worst Perforeman's ever
Speaker 4: for service.
Speaker 5: Now after its earnings, we caught up with the CEO,
Speaker 5: Bill McDermott.
Speaker 4: As he tries to push back on the negativity around software.
Speaker 5: Just take a listen to what he had to say.
Speaker 4: Even though subscription growth is still twenty two percent, you
Speaker 4: beat on revenue.
Speaker 5: What more can you telemarket? Right now?
Speaker 13: Bill, I think it's very important to deal with facts.
Speaker 13: We're fifteen billion dollar enterprise software company, the fastest to
Speaker 13: ever get they're growing at more than twenty percent. We
Speaker 13: had a beaten raised quarter and we reiterated our full
Speaker 13: year guidance. So that's the baseline for the conversation. And
Speaker 13: we are a growth company, and I'll take the interview
Speaker 13: anywhere you wanted to go.
Speaker 4: Let's talk about geopolitical headwinds, Let's talk about acquisition integration expenses.
Speaker 4: Maybe there's some of the areas that investors and the
Speaker 4: analysts have said. Look, it made for a bit more
Speaker 4: of a messy quarter than perhaps would have been easier
Speaker 4: for you to tell the story on what is the
Speaker 4: underlying growth rate of AI at the moment of adoption
Speaker 4: of the service now products.
Speaker 13: Yeah, what you have to realize is AI is the product,
Speaker 13: it's the whole platform. So the platform is fully autonomous.
Speaker 13: So when a customer buys our AI platform, it is
Speaker 13: enabling every function of their company to be a native
Speaker 13: AI company. So it's all AI now. And that's another thing.
Speaker 13: We said we would do twenty and twenty twenty six
Speaker 13: a billion of net new annual contract value on pure
Speaker 13: AI additive to the platform. Yesterday we uped it to
Speaker 13: a billion and a half and I think we'll run
Speaker 13: through that. So if there's anything that the investors wanted,
Speaker 13: they probably wanted a bigger beat. So we're beating every quarter,
Speaker 13: maybe they wanted a bigger beat. And then the second
Speaker 13: thing is, and it is true we acquired a couple
Speaker 13: of companies.
Speaker 3: That was Service Now CEO Bill McDermott. Sticking with software,
Speaker 3: we're looking at IBM at one point in this session
Speaker 3: having its biggest lowest level since a year ago eight
Speaker 3: Pril twenty twenty five. Software AI, same story.
Speaker 4: It is, and also similarly for IBM, it's a macro uncertainty.
Speaker 4: That meant they didn't upgrade their revenue full year expected,
Speaker 4: so they held it.
Speaker 5: They held it, and that seemed cautious. Look.
Speaker 4: I spoke with having Krishna just yesterday after the amid
Speaker 4: the earnings, and he looked said.
Speaker 5: I got better margins, better profit, better cash.
Speaker 4: But he did see that there's a macroeconomy concern and
Speaker 4: so he wasn't going to raise his guidance. But look,
Speaker 4: he's talking about AI as well. It infiltrates all of it.
Speaker 4: It's not just a model. They see tailwinds. The market
Speaker 4: doesn't yet believe it. At the moment, there is angst
Speaker 4: ed about these software businesses being disrupted by.
Speaker 3: Them to say in the future, we will make more money.
Speaker 3: This is the timeline, that's.
Speaker 5: All, And for now they can't.
Speaker 4: But for now we talk about what's happening with a
Speaker 4: deal WBD as we know it, Warner Brothers, Discovery and
Speaker 4: Paramount both down. Paramount down by five percent. But we
Speaker 4: got that approval of the deal one hundred and ten
Speaker 4: billion dollar acquisition of the company BI Paramount's guide outs,
Speaker 4: let's turn our attention to what comes next. Bloemberg's media
Speaker 4: reporter Hannah Miller. The investors okay with it? Now, we've
Speaker 4: got to see if the regulators are yes.
Speaker 16: That's the next step is to overcome any regulatory obstacles
Speaker 16: that crop up, including anti trust reviews in both the
Speaker 16: US and Europe.
Speaker 3: Senator Elizabeth Warren has posted on x in the last
Speaker 3: couple of minutes that the Paramount Warner Brothers deal is
Speaker 3: an antitrust nightmare? Is that how the world feels about this, Hannah?
Speaker 16: I think that's certainly how Hollywood feels about this. That
Speaker 16: we've had a lot of celebrities, actors, writers, directors come
Speaker 16: forward and actually sign an open letter protesting the deal,
Speaker 16: arguing that this will affect jobs, it'll lower production, it'll
Speaker 16: mean higher costs. They think that this consolidation, it would
Speaker 16: have too much power in Hollywood.
Speaker 5: I mean, it's getting personal.
Speaker 4: If you go on TikTok, there's Jane Fonder and pretending
Speaker 4: to be CBS news anchors that are being disrupted in
Speaker 4: the future. Just what is the tactics that Hollywood now deploys.
Speaker 4: What is it that we're likely to expect in terms
Speaker 4: of the time.
Speaker 16: I think we've already seen them really, you know, make
Speaker 16: a big fuss about it in the press. This open
Speaker 16: letter was a great move. We've seen a lot of
Speaker 16: celebrities post on social media. Politicians have also come forward
Speaker 16: and you know, expressed concern about the deal. So you
Speaker 16: know there is going to be this sort of public
Speaker 16: relations battle that'll be on the hurt.
Speaker 2: At some point, we'll talk about the tech story.
Speaker 3: Remember ViacomCBS Paramount plus HBO Max. That will be discussed
Speaker 3: at some point. Bloomberg's Ala Miller, Thank you very much.
Speaker 3: That does it for this edition of Bloomberg Tech.
Speaker 5: It has been such fun. Haven't you sat next to me?
Speaker 2: It's been great. It's been a hell of a week.
Speaker 3: I mean, newsflow wise, markets wise, earnings wise.
Speaker 2: But I think we've we've been across it all.
Speaker 4: You have, you're going to jet back to the West coast.
Speaker 5: Don't forget to check out the podcast.
Speaker 4: You can find on the terminal as well as online
Speaker 4: on Apple, Spotify and iHeart from New York.
Speaker 5: For this Thursday. This is Bloomberg Tech