WEBVTT - Tesla Plans Additional $25 Billion in Spending 0:00:02.520 --> 0:00:13.560 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.600 --> 0:00:17.400 from coast to coast with Caroline Hide in New York 0:00:17.680 --> 0:00:19.680 and EVA though in San Francisco. 0:00:21.880 --> 0:00:23.560 This is Bloomberg Tech coming up. 0:00:23.600 --> 0:00:27.520 Tesla plans for twenty five billion dollars in additional spending 0:00:27.600 --> 0:00:31.440 this year to support Elon Maask's AI ambitions. 0:00:30.960 --> 0:00:33.280 And Intel shares jump out of the company pledges to 0:00:33.280 --> 0:00:37.040 support Musk's advanced chip manufacturing project terror Fat. 0:00:36.840 --> 0:00:39.400 And we'll bring on more tech earnings and tech news. 0:00:39.440 --> 0:00:42.479 We'll hear from the CEOs of Lift, Service Now and 0:00:42.520 --> 0:00:44.400 IBM and First. 0:00:44.120 --> 0:00:46.519 For the last day this week together in New York, Ed. 0:00:46.840 --> 0:00:48.680 We look at what these markets are up to, and 0:00:48.680 --> 0:00:50.800 we're actually managing to cling on to some sort of 0:00:50.840 --> 0:00:53.600 green in the Nasdaq one hundred less so for the 0:00:53.640 --> 0:00:56.480 NASDAK more broadly, and that we are seeing pressure more 0:00:56.800 --> 0:00:59.720 on the investor mindset with oil climbing up again five 0:00:59.720 --> 0:01:02.200 times set high. We're above one hundred and two on rent. 0:01:02.240 --> 0:01:05.440 The geopolitical context remains. It impacts certain earnings like with 0:01:05.560 --> 0:01:08.600 Service Now for example, but we're all tracked on earnings today. 0:01:08.800 --> 0:01:11.319 Yeah, it's been exhausting, frankly, being on Eastern time and 0:01:11.360 --> 0:01:15.920 covering Tesla's earnings in particular, right, really simple, storing massive 0:01:16.160 --> 0:01:19.240 commitment to spending a lot of money to actually get 0:01:19.280 --> 0:01:23.559 going on the two big projects, rob Taxi and Optimus, 0:01:23.640 --> 0:01:26.920 the humanoid robot. The headline capex twenty five billion dollars 0:01:26.959 --> 0:01:29.840 for this year, but actually the shares it down significantly, 0:01:29.920 --> 0:01:32.200 not just because of that, but because of the commentary 0:01:32.440 --> 0:01:34.679 they will enter negative free cash flow for the balance 0:01:34.680 --> 0:01:36.959 of this year. That's a lot of money stuff, but 0:01:37.000 --> 0:01:39.800 there's some execution as well. Let's get to Bloomberg's Crage Trudel, 0:01:40.000 --> 0:01:42.520 who leads our coverage of auto's around the world. 0:01:42.800 --> 0:01:44.040 That's where we probably start. 0:01:44.120 --> 0:01:46.440 Right in the quarter, things look really good, and then 0:01:46.480 --> 0:01:49.040 Tesla told us Craig we are going to spend in 0:01:49.080 --> 0:01:51.640 a multi year investment cycle, and things got a little 0:01:51.680 --> 0:01:52.160 bit sour. 0:01:53.840 --> 0:01:56.520 Yeah, I think, you know, part of what you know 0:01:56.560 --> 0:01:58.680 made the numbers look so good was maybe there was 0:01:58.880 --> 0:02:01.560 a moment where everyone wondered whether or not Tesla was 0:02:01.600 --> 0:02:03.720 actually going to go forward with this sort of high 0:02:03.800 --> 0:02:07.680 wire act of you know, spending the twenty billion dollars 0:02:07.720 --> 0:02:10.440 plus in capex that was outlined just a few months ago, 0:02:11.320 --> 0:02:14.080 you know, for them to actually only have you know, 0:02:14.240 --> 0:02:16.280 roughly two and a half billion dollars of CAPEX in 0:02:16.320 --> 0:02:19.360 the first quarter, that that sort of sent a signal 0:02:19.440 --> 0:02:22.320 potentially that spending wasn't going to be quite at the 0:02:22.360 --> 0:02:25.240 pace that was flagged. Instead, a Musk hops on the 0:02:25.280 --> 0:02:27.720 call and says, oh, no, we're going ahead with that, 0:02:27.800 --> 0:02:29.720 and then some and I think that does give some 0:02:29.760 --> 0:02:32.600 people pause when you have a car business that, yes, 0:02:32.720 --> 0:02:34.400 is looking a little bit better than it was a 0:02:34.480 --> 0:02:36.760 year ago, but a year ago it was really in 0:02:36.800 --> 0:02:37.480 a brutal place. 0:02:37.600 --> 0:02:40.760 Hold that's graphic on the screen. Just let me say 0:02:40.760 --> 0:02:41.359 something real quick. 0:02:41.400 --> 0:02:45.160 Carry The reason at first thing looks so rosy is 0:02:45.200 --> 0:02:49.520 that CAPEX in the quarter was basically not trending toward 0:02:49.600 --> 0:02:50.760 the twenty billion for the full year. 0:02:50.760 --> 0:02:52.600 Anyway, everyone was like, oh, they're underspending. 0:02:53.120 --> 0:02:55.359 And then it got confusing because they were like, wrong, 0:02:56.240 --> 0:02:57.680 going to spend a lot more to take it. 0:02:57.600 --> 0:03:01.920 Away, And I Musk really tried to articulate Craig why 0:03:01.960 --> 0:03:03.919 that spending is necessary. We're going to get to terra 0:03:04.000 --> 0:03:05.560 fab and chips in a moment, but with you, I 0:03:05.600 --> 0:03:08.919 want the underlying fundamentals of where he's spending on cybercab 0:03:09.080 --> 0:03:11.640 what about the humanoid robot focus. I mean, this is 0:03:11.639 --> 0:03:14.079 what investors care about, less about car sales, more about AI. 0:03:15.600 --> 0:03:15.799 Yeah. 0:03:16.000 --> 0:03:18.640 I think that's right, and I think there's been honestly 0:03:18.840 --> 0:03:21.320 a lot of patients with being able to sort of 0:03:21.360 --> 0:03:23.520 look past the idea that a lot of these projects 0:03:23.560 --> 0:03:26.800 have not earned meaningful return and you know, may not 0:03:26.919 --> 0:03:29.680 for the time being. But you know, we've gotten to 0:03:29.720 --> 0:03:32.120 a place now where this is a company that you know, 0:03:32.240 --> 0:03:35.640 is primarily a car business where a couple of years 0:03:35.640 --> 0:03:39.240 now they have actually seen decline in their sales and 0:03:39.280 --> 0:03:43.120 decline in their position in their most important segment. And 0:03:43.640 --> 0:03:46.640 we don't have clear indications of when exactly, you know, 0:03:46.760 --> 0:03:49.680 this robo taxi project is actually going to be meaningful. 0:03:49.720 --> 0:03:53.240 We had, if anything, a bit of incremental indication that 0:03:53.320 --> 0:03:57.080 maybe next year, but that's you know, a bit far off. 0:03:57.080 --> 0:04:00.320 And then also some indications too that the to miss 0:04:00.440 --> 0:04:03.760 robot may not be you know ready, I'm the timelineers 0:04:03.920 --> 0:04:08.320 as previously flagged, so some negative indicators from that perspective. 0:04:07.840 --> 0:04:12.600 As well, shock me create Trudell slower timeline Bloomberg's crety Dow. 0:04:12.680 --> 0:04:15.400 We thank you so much on all things, cars, fundamentals, 0:04:15.520 --> 0:04:16.800 robots more in Tesla, though. 0:04:16.640 --> 0:04:17.120 When in La. 0:04:17.200 --> 0:04:19.279 Mosk has planned to spend three billion dollars to build 0:04:19.279 --> 0:04:22.840 a research facility in Texas part of that ambitious chip 0:04:22.880 --> 0:04:27.039 manufacturing project dubbed Terrifat bringing Intel along for the ride. 0:04:27.040 --> 0:04:31.320 Bloombgs I King in San Francisco could really articulate why 0:04:31.360 --> 0:04:31.920 three billion? 0:04:32.000 --> 0:04:33.760 Is this some sort of like pilot that. 0:04:33.680 --> 0:04:36.240 They do to see whether they can actually make the chips? 0:04:36.800 --> 0:04:39.080 Yeah? I mean this is a long established practice in 0:04:39.080 --> 0:04:41.960 the semikinductor industry where you make what's called a pilot line, 0:04:42.080 --> 0:04:43.920 and this is your way of showing, well, does my 0:04:44.040 --> 0:04:47.880 manufacturing technology work and do my designs work? And you're 0:04:47.960 --> 0:04:50.359 kind of doing it on the cheap three billion dollars, 0:04:50.400 --> 0:04:52.560 you know. I know that's a lot to me and 0:04:52.640 --> 0:04:55.200 maybe not much to you, But in the chip industry 0:04:55.400 --> 0:04:58.440 it really isn't very much at all. It's about ten 0:04:58.440 --> 0:05:00.240 percent of what it would cost to build, you know, 0:05:01.120 --> 0:05:03.200 a leading edge, full sized fab. 0:05:03.720 --> 0:05:06.640 Last night, the news about Elon Musk's ship ambitions came 0:05:06.680 --> 0:05:08.599 in the Q and a portion of the earnings call 0:05:09.080 --> 0:05:11.520 and I needed some help. I turned to you for 0:05:11.560 --> 0:05:14.479 that help to understand the pilot line bit that you 0:05:14.560 --> 0:05:15.960 just explained, but he. 0:05:16.000 --> 0:05:17.680 Dropped a big piece of news. 0:05:17.920 --> 0:05:22.440 He said that the initiative will use Intel's fourteen A process. 0:05:22.960 --> 0:05:26.360 What is Intel's fourteen A process? Why did Intel shares 0:05:26.440 --> 0:05:27.880 jump when that headline hit? 0:05:28.880 --> 0:05:32.040 Yeah, this process that we're talking about, this is basically 0:05:32.080 --> 0:05:36.000 the recipe that they used to create semiconductors, and they're 0:05:36.040 --> 0:05:38.520 looking for outside users of that. Basically, they don't have 0:05:38.680 --> 0:05:41.880 enough of their own work, their own demand for their 0:05:41.880 --> 0:05:43.599 own designs to be able to fill the factory, so 0:05:43.640 --> 0:05:46.960 they need outside customers. So this raised the possibility that 0:05:47.520 --> 0:05:49.840 guess what, you know, Elon Inc. Is going to be 0:05:49.880 --> 0:05:52.520 a customer of Intel in some way. We don't know 0:05:52.560 --> 0:05:54.880 whether he's just going to license that and do it himself, 0:05:55.040 --> 0:05:57.520 or whether he's going to actually help Intel fill its fabs. 0:05:57.680 --> 0:06:01.640 And I hopefully we'll find out later today when Intel. 0:06:00.880 --> 0:06:03.599 Bloomberg Zy and King again really jumped in and helped 0:06:03.600 --> 0:06:06.120 with understanding that when the news broke in Tesla surnings 0:06:06.160 --> 0:06:09.279 call last night, there's a by the way coming the 0:06:09.320 --> 0:06:13.120 Philadelphia Semiconductor Index or SOCKS, that's the main gauge of 0:06:13.200 --> 0:06:16.279 chip stocks in the United States and actually around the world. 0:06:16.320 --> 0:06:19.159 But the US sister Shares is up for a sixteenth 0:06:19.240 --> 0:06:24.200 straight session, sixteen straight days of games, which is a record, 0:06:24.440 --> 0:06:26.800 and that's astonishing when you think about the direction of 0:06:26.839 --> 0:06:30.599 travel in newsflow the war in Iran. We've talked about 0:06:30.600 --> 0:06:33.039 how the war in Iran has impacted the chip supply chain. 0:06:32.920 --> 0:06:36.520 Carrow, but it's not even slowing down. We're up almost 0:06:36.520 --> 0:06:37.600 three percent in the session. 0:06:38.440 --> 0:06:42.359 That is just a phenomenal piece of data analysis that 0:06:42.400 --> 0:06:44.280 you bring time and time again from Bloomberg. But what's 0:06:44.320 --> 0:06:47.040 more important is also just how we navigate this and 0:06:47.040 --> 0:06:49.120 what it means for the likes of Tesla and Intellers. 0:06:49.120 --> 0:06:51.080 They try to bring chips into just about everything. This 0:06:51.160 --> 0:06:54.080 is about AI and the use cases. Pierre Ferugu of 0:06:54.360 --> 0:06:57.880 New Street Research says Tesla has a strong advantage versus 0:06:58.000 --> 0:07:01.800 peers to quote win in order on robot taxing humanoid robots. 0:07:01.800 --> 0:07:03.760 He maintains a BIKE rating on the stock for the 0:07:03.760 --> 0:07:05.080 six hundred dollars price target. 0:07:05.320 --> 0:07:05.920 You join us. 0:07:05.960 --> 0:07:11.320 Now, how important is terrifab to that vision you have 0:07:11.560 --> 0:07:15.200 on winning the AI race for Tesla. 0:07:15.280 --> 0:07:16.800 It's a good question, Caroline. 0:07:18.200 --> 0:07:22.600 The tarafab is like an enhancer for Tesla and so 0:07:22.720 --> 0:07:27.240 SpaceX it's really like a player that is I would 0:07:27.240 --> 0:07:29.680 say five to ten years out and probably closer to 0:07:29.720 --> 0:07:32.760 ten than five. And the idea is that now that 0:07:32.840 --> 0:07:38.880 we know compute is everything, you can achieve miracles with compute, 0:07:39.360 --> 0:07:43.560 the key is going to become how can you deploy 0:07:43.680 --> 0:07:48.040 compute faster than your competitors and at a lower unique costs? 0:07:49.360 --> 0:07:52.520 And what he LEARNMSK is doing today with Tesla and SpaceX, 0:07:52.560 --> 0:07:53.800 it's real project. 0:07:53.560 --> 0:07:54.840 Sitting between the. 0:07:54.840 --> 0:07:58.680 Two, he gets started to be in a position to 0:07:58.840 --> 0:08:03.880 manufacture in how so you know, vertico like integration is 0:08:03.880 --> 0:08:07.440 actually a major factor of course savings in an industry 0:08:07.480 --> 0:08:11.400 where everybody has very high gorss margins. And he's going 0:08:11.440 --> 0:08:15.040 to control the space at which he can actually build 0:08:16.200 --> 0:08:18.880 chips and as he's planning to throw them into space 0:08:18.920 --> 0:08:21.560 and to deploy data centers in space, and he has 0:08:21.640 --> 0:08:24.120 like a pretty large rocket to do. 0:08:24.280 --> 0:08:25.920 Yeah, that's j. 0:08:26.760 --> 0:08:29.760 And forgive me for interrupting you, but what you're saying 0:08:30.120 --> 0:08:32.480 doesn't match what Elon Musk is saying, right because he 0:08:32.520 --> 0:08:35.600 got asked this on the call, are you doing terror fab? 0:08:35.760 --> 0:08:39.360 The initiative to manufacture chips at scale because of unit economics, 0:08:39.840 --> 0:08:43.800 and his response was no. He consistently says, because I 0:08:43.840 --> 0:08:47.720 don't believe that TSMC and Samsung can match the supply 0:08:48.200 --> 0:08:52.160 that Elon Inc. Needs to fulfill those long term ambitions. 0:08:53.400 --> 0:08:59.160 Yeah, I think it's okay to say that today. But 0:08:59.240 --> 0:09:03.560 the unity going to of TSMC probably ter a FAB 0:09:03.720 --> 0:09:06.920 is never going to beat them. But TSMC is now 0:09:07.000 --> 0:09:10.960 charging on average sixty five and growing person ghost margins. 0:09:11.000 --> 0:09:14.720 So if you have your own manufacturing capabilities in a house, 0:09:15.160 --> 0:09:18.679 whether you work magic against TSMC on you need economics 0:09:18.760 --> 0:09:21.640 or not, you are actually working magic on your own 0:09:22.160 --> 0:09:22.920 unit economics. 0:09:25.280 --> 0:09:28.160 Therefore the efficiency gain. Look, all of this needs to 0:09:28.160 --> 0:09:30.320 eventually be put to work. We need to vindicate a 0:09:30.360 --> 0:09:32.559 twenty five billion dollar CAPEX expenditure. 0:09:32.640 --> 0:09:33.920 Yet is it vindicated? 0:09:34.840 --> 0:09:38.840 How if we're already seeing Optimus perhaps behind schedule. If 0:09:38.840 --> 0:09:43.320 we're already questioning, really how quickly regulators can allow cyber 0:09:43.360 --> 0:09:46.280 cab and the autonomous vision on the road, Does it 0:09:46.440 --> 0:09:48.160 match the spending in the here and now? 0:09:48.720 --> 0:09:52.800 It all depends, Caroline, on the timeframe you set for 0:09:52.880 --> 0:09:56.800 yourself to put into perspective. Twenty five billion dollars of 0:09:56.840 --> 0:10:01.319 CAPEX if you include FAB, about half that money is 0:10:01.360 --> 0:10:04.400 going to be spent. I think on compus to be 0:10:05.240 --> 0:10:07.840 in the same league as the frontier players in. 0:10:08.240 --> 0:10:10.680 AI, and you need AI for FSD, you need. 0:10:10.559 --> 0:10:12.920 AI for Optimus, and on top of that you have 0:10:12.960 --> 0:10:16.520 the partnership with Grog of course with XAI. Then the 0:10:16.559 --> 0:10:19.360 second aspect is Teslas this year is set to generate 0:10:19.440 --> 0:10:23.240 but fifteen billion dollars of firm operating cash throw so 0:10:23.920 --> 0:10:26.959 you know, the negative fakesue of Tesla this year might 0:10:27.000 --> 0:10:29.400 be ten billion dollars if they manage to spend fast 0:10:29.440 --> 0:10:31.840 and of the twenty five billion, which might be a challenge. 0:10:32.400 --> 0:10:35.160 And they have a balance a cash balance studio of 0:10:35.200 --> 0:10:38.360 about forty five billion dollars, So we're talking thing that 0:10:38.440 --> 0:10:42.160 at the scale of Tesla is actually very reasonable. Then, 0:10:42.200 --> 0:10:43.800 in terms of how do you get a return on 0:10:43.880 --> 0:10:48.760 that robot XI, there is a broad consensus that once 0:10:48.800 --> 0:10:54.120 it is you know, really scaled out, it's a multi 0:10:54.120 --> 0:10:58.360 trillion dollar opportunity. So I mean, if the cost to 0:10:58.400 --> 0:11:00.160 get into the race and win it is twenty five 0:11:00.200 --> 0:11:03.440 million dollars, answer, it's a good price. Yeah, And then 0:11:03.440 --> 0:11:05.959 you have Optimus a million optimists a year. How much 0:11:06.040 --> 0:11:08.520 value is there in that? Another thing is that it's 0:11:08.520 --> 0:11:10.920 going to take many years before we get right. So 0:11:11.400 --> 0:11:14.280 it's a long it's a long duration investment. 0:11:14.440 --> 0:11:14.600 You know. 0:11:14.640 --> 0:11:16.880 Twenty five billion dollars is the big number, and later 0:11:16.920 --> 0:11:19.560 in the show will explain why it's the big number. Pierre, 0:11:19.559 --> 0:11:22.480 did you wake up this morning in the camp of 0:11:22.800 --> 0:11:25.160 which some of your colleagues are in that there is 0:11:25.240 --> 0:11:28.920 further evidence now that eventually SpaceX will merge with Tesla. 0:11:31.080 --> 0:11:31.760 I won't tell you. 0:11:32.880 --> 0:11:35.760 I think it's going to become more and more challenging 0:11:36.600 --> 0:11:40.560 not to do it. For sure, a terrafab project like 0:11:40.600 --> 0:11:43.880 the pilot line at Tesla in the first large scale manufacturing, 0:11:43.920 --> 0:11:49.760 the faber at SpaceX, the cross accounting and you know 0:11:49.840 --> 0:11:53.199 pricing between the two is going to become difficult. Yesterday 0:11:53.280 --> 0:11:56.320 learn explained how you know optimist Roberts will remain connected 0:11:56.320 --> 0:11:59.120 to the cloud. If they remain if they need very 0:11:59.200 --> 0:12:02.960 large cloud blow it might be sphase data and third eployments, right, 0:12:03.160 --> 0:12:04.760 and so there would be a question on how much 0:12:04.800 --> 0:12:09.920 to slapez for like space on on Starship. So there 0:12:09.960 --> 0:12:14.280 are a lot of good reasons for the merger to happen. Now, 0:12:14.320 --> 0:12:16.400 you know, does that mean it's going to happen. I 0:12:16.400 --> 0:12:17.960 wouldn't bridge that gap yet. 0:12:18.280 --> 0:12:20.599 Yeah, fair good of New Street research or is a 0:12:20.679 --> 0:12:22.559 joy having you on the show. Thank you for the analysis. 0:12:22.600 --> 0:12:25.280 Now we are also watching shares of other earnings that 0:12:25.400 --> 0:12:26.079 become thick and. 0:12:26.040 --> 0:12:26.960 Fast over in Europe. 0:12:27.000 --> 0:12:28.760 Look how noc here our performs that more than five 0:12:28.760 --> 0:12:32.679 percent again, and AI an infrastructure story in many ways 0:12:32.880 --> 0:12:35.480 for Nokia that manages to see European stocks on the 0:12:35.559 --> 0:12:37.040 higher side for its particular play. 0:12:37.080 --> 0:12:40.520 But boy are we in the eye of the software 0:12:40.559 --> 0:12:41.160 storm right now. 0:12:41.120 --> 0:12:42.480 Nouchi I'm the. 0:12:42.600 --> 0:12:45.960 M eight percent Service now down the most in its history, 0:12:46.640 --> 0:12:50.160 and that's after we once again have to our CEOs 0:12:50.320 --> 0:12:52.400 to prove a negative and they're finding it very hard 0:12:52.440 --> 0:12:54.480 to do so. They had twenty two percent growth in 0:12:54.559 --> 0:12:57.120 subscription and still the stock dives. We're going to be 0:12:57.120 --> 0:12:59.280 hearing more from the CEO of service now later this hour. 0:12:59.600 --> 0:13:01.320 Let's around with all of that. But ed what else 0:13:01.320 --> 0:13:01.800 we got coming up? 0:13:01.880 --> 0:13:03.760 Yeah, it's going to talk about k Hinnicks posting a 0:13:03.800 --> 0:13:08.199 sharp jump in quorly profit on booming AI memory demand. 0:13:08.200 --> 0:13:10.360 But how long is that going to last? 0:13:10.840 --> 0:13:11.840 This is Bloomberg Tech. 0:13:18.720 --> 0:13:22.840 Let's look at Korean trading now, sk Heinex flat, but 0:13:22.880 --> 0:13:25.720 the South Korean semiconductive manufacturer actually reported. 0:13:25.400 --> 0:13:28.320 A fivefold jump in quarterly profit. 0:13:28.480 --> 0:13:30.920 But the results are instead leaving investors questioning actually the 0:13:30.920 --> 0:13:34.240 longevity of the AI boom. Bloomberg Asia stocks reporter who's 0:13:34.280 --> 0:13:37.360 here in New York with SCFPN Lee can articulate why 0:13:37.400 --> 0:13:39.920 the stock was under pressure with such a phenomenal set 0:13:39.920 --> 0:13:40.320 of profit. 0:13:40.559 --> 0:13:43.600 Yeah, absolutely, it was an absolutely stunning quarter. But also 0:13:43.720 --> 0:13:45.400 you have to note that the shares have rise in 0:13:45.480 --> 0:13:47.199 ninety percent so far just here, and if you look 0:13:47.200 --> 0:13:49.480 at the past here the share has rose more than 0:13:49.760 --> 0:13:52.040 the rise of more than five four on. The position 0:13:52.200 --> 0:13:55.760 is pretty crowded. So even even the strong earnings can 0:13:55.800 --> 0:13:58.480 trigger sell on the news. But I think investors wants 0:13:58.559 --> 0:14:02.200 more evidence to see that earning is more structural than cyclical, 0:14:02.240 --> 0:14:04.920 and that's going to take more than a couple of months. 0:14:05.559 --> 0:14:08.360 So if you look at the memory ship in the past, 0:14:08.400 --> 0:14:10.520 there has been bloom and bus cycle and even though 0:14:10.559 --> 0:14:14.920 people agree that this is the supercycle that's percent unprecedented, 0:14:15.640 --> 0:14:18.439 this is still subject to the could be subject to 0:14:18.480 --> 0:14:20.960 the downtren This is a trillion dollar question. When that 0:14:21.000 --> 0:14:22.200 downturn could start. 0:14:22.160 --> 0:14:24.920 We're talking about the lucrative market for high bandwidth memory. 0:14:24.960 --> 0:14:27.360 I always think about it as the funnel. It allows 0:14:27.400 --> 0:14:31.000 the GPU to take the data quickly and process it quickly. 0:14:31.160 --> 0:14:34.120 So you got sk Heinex, You've got Samsung and then 0:14:34.200 --> 0:14:37.480 Micron in the United States. Beyond the numbers, was there 0:14:37.520 --> 0:14:40.840 evidence that sk is winning a little bit in that 0:14:40.880 --> 0:14:41.800 market of HBM. 0:14:42.000 --> 0:14:45.240 Yeah, Actually, esk Heinezys, that's just the biggest, the supplier 0:14:45.320 --> 0:14:47.880 of the HPM. It has about sixty percent market share 0:14:47.960 --> 0:14:51.280 last year. But the rivals Samsung and Micron are catching up, 0:14:51.360 --> 0:14:54.440 especially Samsung. But what's interesting is that because a lot 0:14:54.440 --> 0:14:57.920 of these memory names have been diversifying, reallocating their production 0:14:58.040 --> 0:15:02.240 resources to HBM, we're seeing stortages in the traditional M 0:15:02.600 --> 0:15:05.760 and NAN that's giving pricing power to dis memory makers 0:15:05.800 --> 0:15:08.720 and that's why we're seeing the strong numbers this quarter 0:15:08.760 --> 0:15:10.320 for s k heinezin. 0:15:09.800 --> 0:15:10.080 Those of you. 0:15:10.160 --> 0:15:12.440 Only great to have you on Blombo Tech. Thank you 0:15:12.560 --> 0:15:14.440 very much. A lot of news out there today, Cara. 0:15:14.360 --> 0:15:16.120 Now is a lot from Asia. In fact, let's go there. 0:15:16.160 --> 0:15:18.040 It's time for talking tech. First up, soft Bank is 0:15:18.080 --> 0:15:20.560 seeking a ten billion dollar loan secured by its shares 0:15:20.880 --> 0:15:24.400 in OPENINGI. It'scording to sources, the Japanese conglomerate has been 0:15:24.520 --> 0:15:27.520 piling on debt as Fano Massiosti's son seeks the position 0:15:27.640 --> 0:15:30.880 himself really is a lynchpin in the global AI boom 0:15:31.080 --> 0:15:32.640 because of insuring SoftBank's debt. 0:15:32.720 --> 0:15:34.440 Well, that's jumped after that news came out. 0:15:34.880 --> 0:15:37.640 Plus ten Cent has unveiled a major upgrade to its 0:15:37.640 --> 0:15:41.080 foundational AI model, with major advances in areas from complex 0:15:41.160 --> 0:15:42.680 musing in particular to coding. 0:15:43.000 --> 0:15:44.520 It's the first big test for the. 0:15:44.440 --> 0:15:47.600 Company since it recruited a top researcher from Openingi. The 0:15:47.680 --> 0:15:50.200 model has been made available via a suite of ten 0:15:50.280 --> 0:15:53.760 Cent products, and TSMC plans to hold off on adopting 0:15:53.800 --> 0:15:56.840 ASML's most cutting edge machine for chip production until twenty 0:15:56.840 --> 0:15:59.400 twenty nine because it looks to save money. That's a 0:15:59.480 --> 0:16:02.360 major blow the Dutch maker of some inconductive manufacturing equipment. 0:16:02.400 --> 0:16:05.920 Now TSMC is its largest customer, according to Bloomberg supply 0:16:06.000 --> 0:16:08.600 chain data. And by the way, look, each of these 0:16:08.640 --> 0:16:11.960 advanced lithography machines cost over four hundred million dollars a 0:16:11.960 --> 0:16:13.320 piece if you're looking at the top end. 0:16:13.480 --> 0:16:15.480 At the top end, a lesson we learn on the 0:16:15.480 --> 0:16:17.960 show the other day. A lot of people are out 0:16:18.000 --> 0:16:21.840 shopping right now and coming up. Lift is claiming its 0:16:21.920 --> 0:16:26.480 territory in London, Europe's largest righte hailing market. David Risher, 0:16:26.520 --> 0:16:29.360 he's the CEO of Lyft. He's been shopping and buying 0:16:29.440 --> 0:16:31.800 up some interesting companies. We're going to discuss that next. 0:16:31.960 --> 0:16:32.880 This is Bloomberg Tech. 0:16:42.960 --> 0:16:45.480 Lift is doubling down on this international expansion with a 0:16:45.520 --> 0:16:49.280 deal to acquire gets UK business. This marks Lift's third 0:16:49.320 --> 0:16:51.400 acquisition in just a year in a move to really 0:16:51.400 --> 0:16:55.040 catch up with its large arrival Uber. David Rischer, CEO 0:16:55.040 --> 0:16:56.880 of Lyft, joins us to share more in the company's 0:16:56.920 --> 0:17:00.160 growth strategy. The growth strategy is international growth day and 0:17:00.280 --> 0:17:03.840 what was it about gets UK optionality here that you liked? 0:17:04.840 --> 0:17:07.679 So it is the big guy when it comes to 0:17:07.760 --> 0:17:11.960 London's black cabs, and London's black cabs are awesome. I suspect, Carolyn, 0:17:12.000 --> 0:17:13.800 you've taken one or two in your life and you 0:17:13.880 --> 0:17:16.920 know they're amazing, right, So it's the best way to 0:17:16.920 --> 0:17:19.239 get around London. And that's the idea is we are 0:17:19.280 --> 0:17:21.800 a customer obsess company. We wanted to make sure that 0:17:21.840 --> 0:17:25.320 we could increase our footprint in London. This roughly doubles 0:17:25.320 --> 0:17:27.880 the size of our rides in London, which is wonderful. 0:17:28.080 --> 0:17:30.080 And I think some like seventy five to eighty percent 0:17:30.119 --> 0:17:32.399 of London cabs who have an app are going to 0:17:32.440 --> 0:17:35.000 have access to Lift customers over time. So it's a 0:17:35.000 --> 0:17:35.760 great win win. 0:17:35.840 --> 0:17:37.840 Now, David, you know, I think the best way to 0:17:37.840 --> 0:17:40.080 get around any city is to bike, and I'm pleased 0:17:40.080 --> 0:17:42.400 that you're also doing the bike optionality the suntime they're 0:17:42.400 --> 0:17:44.600 bikes you have in London. Just what does this mean 0:17:44.640 --> 0:17:46.760 in terms of capital intensiveness? What does this mean in 0:17:46.840 --> 0:17:49.920 terms of investment you need to make in these new cities. 0:17:50.680 --> 0:17:53.080 Yeah, so it's not a very big capital raise. I 0:17:53.119 --> 0:17:55.160 mean a nice thing about the sort of let's say 0:17:55.240 --> 0:17:57.919 traditional ride share business, the one that we're in is 0:17:57.960 --> 0:17:59.800 we don't own a lot of assets, right, the London 0:17:59.880 --> 0:18:02.280 cabbes own their own cars. So really what this does 0:18:02.320 --> 0:18:05.000 is it allows caves taxi cab drivers who are as 0:18:05.040 --> 0:18:08.199 you know, brilliant, to sort of make even more of 0:18:08.240 --> 0:18:10.120 their time. Right, They're going to have more customers thanks 0:18:10.160 --> 0:18:12.880 to the Lift app and our promotion of the get 0:18:12.920 --> 0:18:15.560 by Lift app. So anyway, that'd be great. They also 0:18:15.560 --> 0:18:18.159 have a big business to business audience. They actually do 0:18:18.200 --> 0:18:21.320 work with a VBC, they do work with the economists, 0:18:21.440 --> 0:18:24.080 they do work with the Royal Albert Hall. So they've 0:18:24.119 --> 0:18:26.919 got a really nice stable base that we can build on. 0:18:27.080 --> 0:18:31.000 And then as mobility changes over time, becomes more autonomous 0:18:31.040 --> 0:18:33.120 and so forth, it just gives us a bigger footprint 0:18:33.440 --> 0:18:34.000 in the UK. 0:18:34.320 --> 0:18:37.000 I want to understand, David, how this works in practice. 0:18:37.560 --> 0:18:41.720 In Western Europe, the taxi cab is part of the culture, 0:18:42.280 --> 0:18:45.679 and in London, of all places, the black cab is 0:18:45.720 --> 0:18:47.439 at the heart of what it is to be a 0:18:47.480 --> 0:18:51.120 Londoner or a visitor to that city. So how does 0:18:51.160 --> 0:18:55.000 the consumer respond to a big American tech company coming 0:18:55.040 --> 0:18:58.879 in and bringing a brand like get into its fold? 0:19:00.320 --> 0:19:02.560 I mean, I hope, well, right, what we hope to 0:19:02.600 --> 0:19:06.520 do is bring the same customer obsession that we bring 0:19:06.560 --> 0:19:09.160 here every single day in North America, you know, all 0:19:09.160 --> 0:19:11.400 across the world. As you guys know, we acquired Free 0:19:11.400 --> 0:19:14.439 Now last year. They also have a significant presence in London, 0:19:14.840 --> 0:19:17.919 across all of Europe really and we've seen great growth 0:19:18.280 --> 0:19:20.520 with that brand and with our writers there because they're 0:19:20.560 --> 0:19:23.200 now seeing you know, an even better experience. So look, 0:19:23.240 --> 0:19:25.600 that's our general strategy is you know, customer obsessions with 0:19:25.720 --> 0:19:28.560 drives profitable growth. And I just love to your point 0:19:28.600 --> 0:19:30.359 the fact that we're going to be with the London 0:19:30.400 --> 0:19:33.679 cab system in such a deep way because it's frankly 0:19:33.680 --> 0:19:36.000 going to teach us something about great service. London cabies 0:19:36.040 --> 0:19:38.320 are amazing in that way, and hopefully it'll allow us 0:19:38.359 --> 0:19:41.680 to bring even better technology and sort of invest more 0:19:41.680 --> 0:19:44.560 in the whole marketing of the idea of taking a 0:19:44.600 --> 0:19:45.639 taxi when you're in London. 0:19:45.960 --> 0:19:49.760