WEBVTT - Tesla’s FSD Factored in Fatal Crash, GlobalFoundries Boosts US Production 0:00:02.520 --> 0:00:09.119 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.200 --> 0:00:14.920 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.360 --> 0:00:25.880 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.720 --> 0:00:38.000 Live from San Francisco. This is Bloomberg Technology Coming up. 0:00:38.080 --> 0:00:41.920 President Trump says Chinese leader Shijingping is very tough to 0:00:41.920 --> 0:00:44.519 make a deal with tech response to his late night 0:00:44.560 --> 0:00:45.440 social media post. 0:00:45.560 --> 0:00:48.760 Plus Global Foundaries, the biggest US based provider of made 0:00:48.800 --> 0:00:52.080 to order chips announces a plan to spend sixteen billion 0:00:52.320 --> 0:00:53.960 to bolster domestic production. 0:00:54.320 --> 0:00:58.320 And Bloomberg makes public for the first time dashcam footage 0:00:58.320 --> 0:01:01.360 and details from the late twenty twenty three when a 0:01:01.440 --> 0:01:03.040 Tesla using FSD was in. 0:01:03.000 --> 0:01:03.960 A fatal crash. 0:01:04.760 --> 0:01:08.200 But first we check in on these markets and alternatively 0:01:08.280 --> 0:01:10.000 higher Look, we've once again got. 0:01:09.959 --> 0:01:11.279 Bad news being good news. 0:01:11.560 --> 0:01:14.280 Slower services than expected in terms of economic data, slow 0:01:14.319 --> 0:01:17.080 in jobs growth than expected means will the Federal Reserve 0:01:17.200 --> 0:01:20.160 give some push to the economic perspective? Now's that one 0:01:20.240 --> 0:01:22.560 hundred trades up, some three tens of percent ed Go 0:01:22.600 --> 0:01:23.039 on a hood. 0:01:23.080 --> 0:01:23.880 What's moving this market? 0:01:23.959 --> 0:01:25.680 Yeah, we've got some big stories in the show today. 0:01:25.720 --> 0:01:28.440 Let's start with one that's coming up very soon. Global 0:01:28.440 --> 0:01:32.720 Foundaries up two percent. An accelerating and expanded investment in 0:01:32.720 --> 0:01:37.200 the United States for cutting edge production capacity. Tesla is 0:01:37.240 --> 0:01:40.399 down under pressure a big Bloomberg report making public for 0:01:40.560 --> 0:01:44.959 the first time some dashcam footage of a crash in 0:01:45.000 --> 0:01:48.440 twenty twenty three when a Tesla using FSD struck and 0:01:48.520 --> 0:01:51.640 killed someone. We will get the details later. And then 0:01:51.840 --> 0:01:55.720 HPE Hewlett Packard Enterprise up six tens percent, strong revenue growth. 0:01:55.920 --> 0:01:59.280 Tariffs are an impact. And then here's the activist investor question. 0:01:59.360 --> 0:02:00.720 We speak to the sea later in the. 0:02:00.720 --> 0:02:01.880 Hour, important conversation. 0:02:01.960 --> 0:02:04.200 But let's get back to what has been really the 0:02:04.240 --> 0:02:06.960 focus of the market this morning. Was President Trump doubling 0:02:07.000 --> 0:02:09.360 down on tensions with China. Like in a post on 0:02:09.400 --> 0:02:13.200 truth Social overnight, the President called Chinese leader Shiji Ping very. 0:02:13.000 --> 0:02:15.360 Tough and extremely hard to make a deal with. 0:02:15.840 --> 0:02:18.640 For more in Moost, Katie land Lines is standing by Kaylee. 0:02:19.080 --> 0:02:22.840 What is the impact on corporate America and indeed tech 0:02:23.000 --> 0:02:24.040 America at that. 0:02:25.720 --> 0:02:28.600 Well, it's going to depend, frankly on how the President 0:02:28.639 --> 0:02:31.440 and president she decided to move from here. As Trump 0:02:31.520 --> 0:02:34.200 says that China is proving and she's specifically very tough 0:02:34.200 --> 0:02:36.600 to deal with. It seems he's also proving tough to 0:02:36.639 --> 0:02:38.480 get on the phone, as the White House has four 0:02:38.560 --> 0:02:41.280 days now said that a phone conversation between Trump and 0:02:41.280 --> 0:02:43.639 She will happen in the near future as they try 0:02:43.639 --> 0:02:45.760 to sort out what both sides have accused each other 0:02:45.800 --> 0:02:49.040 of as being violations of the trade agreement that was 0:02:49.120 --> 0:02:52.000 just struck in Geneva that of course, brought tariffs down 0:02:52.040 --> 0:02:54.680 from the incredibly high levels in exchange for some other 0:02:54.760 --> 0:02:58.600 non tariff barriers being removed, at least in the US's mind, 0:02:58.680 --> 0:03:01.720 China was set to start granting licenses once again for 0:03:01.840 --> 0:03:05.240 exports of critical minerals and rare earths to US companies 0:03:05.280 --> 0:03:07.600 that have been choked off from them. Knowing that China 0:03:07.639 --> 0:03:10.720 has a choke hold on rare earth supply, they control 0:03:10.760 --> 0:03:13.960 about seventy percent of that market, and those rare earths 0:03:13.960 --> 0:03:17.320 are needed for a lot of national security purposes in 0:03:17.360 --> 0:03:21.120 the US. Obviously advanced technology around things like fighter jets, 0:03:21.120 --> 0:03:23.680 for example, or nuclear control rods. These are things that 0:03:23.720 --> 0:03:26.720 the US and many US companies actually need access to 0:03:27.040 --> 0:03:29.160 in order to do their production work. In the US 0:03:29.200 --> 0:03:32.360 is saying that China is keeping them from getting those 0:03:32.400 --> 0:03:35.520 materials not moving as quickly as the US desires. China, 0:03:35.560 --> 0:03:37.760 on the other hand, is accusing the US of also 0:03:37.840 --> 0:03:40.080 violating the agreement, as we have seen a further ratcheting 0:03:40.120 --> 0:03:43.880 up of export controls in different areas, including around jet 0:03:43.880 --> 0:03:46.800 parts but also chip design software for example. We continue 0:03:46.800 --> 0:03:49.400 to see an expansion of the areas in which the 0:03:49.520 --> 0:03:52.080 US is not allowing export into the Chinese markets, and 0:03:52.120 --> 0:03:54.320 all of this raises the risk that if an agreement 0:03:54.360 --> 0:03:57.560 cannot be made or kept to, that tariffs between these 0:03:57.600 --> 0:04:00.360 two largest economies could go higher again, which obvious have 0:04:00.680 --> 0:04:04.960 massive implications for companies that are reliant on Chinese imports 0:04:05.000 --> 0:04:06.280 in order to make their goods. 0:04:07.040 --> 0:04:10.440 Bloomberg Balance of Power hosts Katie lyons, thank you very much. 0:04:10.560 --> 0:04:13.480 Just days after leaving his position in government, Elon Musk 0:04:13.560 --> 0:04:18.919 has been criticizing President Trump's signature legislation, his Big, Beautiful 0:04:19.200 --> 0:04:23.320 Tax and Spending Bill, calling it a budget busting abomination. 0:04:23.640 --> 0:04:26.599 The Tech Titans public condemnation pits him against the President 0:04:26.800 --> 0:04:30.200 at a critical time, as Trump is personally lobbying holdouts 0:04:30.440 --> 0:04:31.159 on that bill. 0:04:31.440 --> 0:04:34.600 Cara, Now, let's look at how the US government is 0:04:34.640 --> 0:04:37.640 affecting American chip sector, which of course is something that 0:04:37.640 --> 0:04:40.400 President Trump has been vocal about. Ed global founderies, it's 0:04:40.440 --> 0:04:42.760 the biggest US based provider of May to order chips, 0:04:42.880 --> 0:04:46.280 today announcing plans to invest sixteen billion dollars to expand 0:04:46.279 --> 0:04:50.359 its chip manufacturing and advance packaging capabilities across facilities in 0:04:50.360 --> 0:04:53.080 New York and in Vermont A. Please to welcome CEO 0:04:53.200 --> 0:04:56.200 Tim Breen to the show. Tim, how much is this 0:04:56.279 --> 0:04:59.920 a reaction to the geopolitical landscape and to Trump's desire 0:05:00.000 --> 0:05:01.320 to bring manufacturing into the US. 0:05:02.720 --> 0:05:04.839 Yeah, well, thank you for having me. So it's really 0:05:04.839 --> 0:05:07.279 a long term trend where we see the needs for 0:05:07.320 --> 0:05:09.719 the technologies that we make here in the US just 0:05:09.760 --> 0:05:13.040 growing significantly as semiconductors play a broader role in kind 0:05:13.040 --> 0:05:15.159 of every aspect of our life, from the cars we drive, 0:05:15.240 --> 0:05:17.800 the phones in our pockets, even satellites in space, and 0:05:17.800 --> 0:05:20.320 the data centers we're building around the world. And that 0:05:20.400 --> 0:05:22.560 role is growing, and obviously that needs to be met 0:05:22.600 --> 0:05:25.800 by increased investment. And the US has an imbalance between 0:05:25.800 --> 0:05:28.160 what is designed here and what is created here from 0:05:28.200 --> 0:05:31.080 innovators like the ones mentioned in our announcement today, and 0:05:31.080 --> 0:05:33.080 what is manufactured, and you know, GF is doing its 0:05:33.080 --> 0:05:35.360 part to grow that capacity, and that's a long term 0:05:35.360 --> 0:05:37.120 investment for us and part of a long term trend. 0:05:38.080 --> 0:05:40.240 And there had been long term signals that you were 0:05:40.240 --> 0:05:42.040 making this investment. I think it was a late last 0:05:42.120 --> 0:05:44.200 year you talked about the thirteen billion dollars over the 0:05:44.240 --> 0:05:44.920 next ten years. 0:05:44.960 --> 0:05:46.800 So how much of this is net new? 0:05:47.120 --> 0:05:48.880 Is that three billion dollars in terms of R and 0:05:48.920 --> 0:05:50.680 D the real new bit hit tim. 0:05:51.200 --> 0:05:53.160 Yeah, So we're building on our existing plans, and those 0:05:53.160 --> 0:05:55.120 plans are already underway. So this is a great chance 0:05:55.120 --> 0:05:57.960 for us to go faster, go bigger, and also bring 0:05:57.960 --> 0:06:00.560 more innovation. And I think especially the the changes we're 0:06:00.560 --> 0:06:02.640 seeing with the role of AI, both in the cloud, 0:06:02.960 --> 0:06:04.920 in the edge, and all of the connectivity in between, 0:06:05.000 --> 0:06:07.040 just means we need to be ready for the demand 0:06:07.040 --> 0:06:09.440 that's coming our way. And so yes, it's more building 0:06:09.440 --> 0:06:10.880 on those investments we've already started. 0:06:12.040 --> 0:06:15.320 I've studied your capital expenditures and basically you average about 0:06:15.320 --> 0:06:17.200 one point four billion dollars every year. So I go 0:06:17.240 --> 0:06:21.520 back to Caroline's question the sixteen billion dollars, what's new 0:06:21.560 --> 0:06:24.599 in it? What is the composition of that funding and 0:06:24.600 --> 0:06:26.600 where does the funding come from. 0:06:27.040 --> 0:06:29.560 Yeah, so we have a clear plan to fund this 0:06:29.640 --> 0:06:31.760 over the coming years, and I think you know, obviously, 0:06:32.360 --> 0:06:35.240 our CAPEX investments are based on customer demand, and so 0:06:35.440 --> 0:06:38.200 we'll be able to accelerate those as that demand materializes. 0:06:38.240 --> 0:06:41.640 And we're seeing that renewed interest in US based manufacturing 0:06:41.680 --> 0:06:43.520 from you know, many of these companies we've talked about, 0:06:43.560 --> 0:06:45.880 and so we'll be able to modulate our CAPEX investments 0:06:45.960 --> 0:06:46.800 to match the demand. 0:06:46.920 --> 0:06:48.680 And obviously that's what we try to do as a company. 0:06:50.160 --> 0:06:54.640 Qualcom is is a pretty high digits customer for you, 0:06:54.760 --> 0:06:57.320 right and when the news broke within minutes there's an 0:06:57.320 --> 0:07:00.400 email in my inbox and a quote from Christy them 0:07:00.400 --> 0:07:04.320 on it's interesting because you are listing many partners and 0:07:04.360 --> 0:07:10.080 customers as beneficiaries of this initiative. Which customers are you 0:07:10.080 --> 0:07:11.760 going to prioritize and why? 0:07:13.760 --> 0:07:15.520 You know, we have a number of great companies that 0:07:15.560 --> 0:07:17.720 have supported this announcement and then you know, in many 0:07:17.720 --> 0:07:20.000 cases they've been our partners for you know, decades in 0:07:20.040 --> 0:07:22.480 some cases, and so quotcom is a great example of 0:07:22.480 --> 0:07:26.120 a company that's always prioritized global sourcing, having optionality and 0:07:26.160 --> 0:07:28.400 definitely producing here in the US and it's a true 0:07:28.440 --> 0:07:31.000 anchor for US in our US factories, especially in New York, 0:07:31.040 --> 0:07:32.800 and so I think we're going to be continuing to 0:07:32.840 --> 0:07:35.200 work with all of these customers to meet their requirements, 0:07:35.240 --> 0:07:38.200 and those requirements are changing, right. They're bringing new technologies 0:07:38.200 --> 0:07:40.760 to market, they're penetrating new markets on their own. Quo 0:07:40.760 --> 0:07:43.800 become a great example of penetrating new industries like automotive, 0:07:43.840 --> 0:07:45.720 which is again a strength for US, and so very 0:07:45.720 --> 0:07:47.679 happy to support more of that right here in the US. 0:07:48.640 --> 0:07:50.800 It's more expensive to do things here in the US. 0:07:51.080 --> 0:07:53.480 How much are costs slightly to go up? How much 0:07:53.520 --> 0:07:57.200 more can you charge by bringing your manufacturing here? 0:07:58.680 --> 0:08:01.360 Well, manufacturing scale matter, and that's why for US, building 0:08:01.400 --> 0:08:04.080 on existing factories that have already been up and running 0:08:04.160 --> 0:08:07.160 with good yields, with high quality makes it more efficient. 0:08:07.240 --> 0:08:08.800 And so when you've learned how to do it now, 0:08:08.840 --> 0:08:10.880 for in the New York case, over a decade and 0:08:10.920 --> 0:08:12.920 even longer in Vermont, you know how to do it 0:08:12.960 --> 0:08:15.640 at a better cost structure, and obviously investing more gives 0:08:15.640 --> 0:08:19.040 you that scale advantage. But the other advantage for customers 0:08:19.160 --> 0:08:21.480 is that they have flexibility, They have optionality in where 0:08:21.520 --> 0:08:24.200 they manufacture and so they can do one design and 0:08:24.280 --> 0:08:26.400 have it made all over the world for their requirements 0:08:26.440 --> 0:08:28.360 they have for different markets, including here in the US. 0:08:28.400 --> 0:08:30.560 So actually we think this for them actually represents a 0:08:30.600 --> 0:08:32.240 cost saving over the long haul. 0:08:33.200 --> 0:08:35.720 Tim. There's also reports out of Germany this morning that 0:08:35.800 --> 0:08:38.040 you are investing there. What's the latest with that. 0:08:39.160 --> 0:08:41.360 Yeah, So today's announcement is very much focused on our 0:08:41.440 --> 0:08:43.760 US plans and it's clearly the area we see the 0:08:43.760 --> 0:08:47.000 biggest mismatch between supply and demand, and so we'll be 0:08:47.520 --> 0:08:49.760 a large part of our investment plan going forward. We 0:08:49.840 --> 0:08:51.840 have a great facility in Germany and dress then we'll 0:08:51.880 --> 0:08:54.200 continue to upgrade that and expand it over time. 0:08:54.640 --> 0:08:55.280 Nothing like the. 0:08:55.200 --> 0:08:57.040 Scale we see in the US in terms of new 0:08:57.040 --> 0:09:00.000 investments in the short haul, but again a great opportunity 0:09:00.200 --> 0:09:02.520 to get meet board our European customers need out of 0:09:02.520 --> 0:09:03.160 that facility. 0:09:04.280 --> 0:09:07.200 Tim, Do you need more from the government in terms 0:09:07.240 --> 0:09:10.559 of funding. You got money from the Chipsack late last year, 0:09:11.000 --> 0:09:14.280 and of course that's been in many ways talked down 0:09:14.360 --> 0:09:17.200 by the current administration. Do you need more funding from 0:09:17.200 --> 0:09:18.960 the government or is this the way to do things? 0:09:19.000 --> 0:09:22.280 With capital partnerships and indeed with capital expenditure from yourself. 0:09:23.280 --> 0:09:25.400 Yeah, I think all of these investments always need to 0:09:25.400 --> 0:09:27.600 be done in partnership. We're really grateful for the support 0:09:27.840 --> 0:09:31.880 of this administration. They've been impeccable partners. They understand our 0:09:31.880 --> 0:09:34.440 business and where we're going. We get great support from 0:09:34.480 --> 0:09:36.959 them in various different forms, and not just for building 0:09:36.960 --> 0:09:39.679 the supply, but also encouraging the demand to come back 0:09:39.720 --> 0:09:40.040 on shore. 0:09:40.040 --> 0:09:42.840 And I think that's a super helpful partnership for us. Obviously, 0:09:42.840 --> 0:09:44.240 we can't do this without our customers. 0:09:44.240 --> 0:09:46.320 That's the reason we exist, and so them being a 0:09:46.320 --> 0:09:48.280 part of the story and bringing back that demand to 0:09:48.280 --> 0:09:51.120 the US is also an essential part of underrunning these investments. 0:09:51.120 --> 0:09:52.880 And so look, it's all about partnership. 0:09:53.960 --> 0:09:54.200 Tim. 0:09:54.240 --> 0:09:56.240 What's Apple's role in this and how are you going 0:09:56.320 --> 0:09:58.839 to be working with them differently as part of this expansion. 0:10:00.040 --> 0:10:00.199 Yeah. 0:10:00.200 --> 0:10:03.200 I think Apple's been very clear that for them, there's 0:10:03.240 --> 0:10:05.480 a huge amount of semiconductor content that goes in all 0:10:05.520 --> 0:10:07.840 of the incredible devices they bring to market. And you know, 0:10:07.880 --> 0:10:09.240 if you took your iPhone out of your pocket and 0:10:09.280 --> 0:10:12.000 opened it up, you'd find an incredible array of different. 0:10:11.760 --> 0:10:12.679 Technologies in there. 0:10:12.720 --> 0:10:15.160 Many of them are technologies that you have produces and 0:10:15.200 --> 0:10:17.080 some here in the US and some will bring back 0:10:17.120 --> 0:10:19.000 to the US as we go forward, And so yeah, 0:10:19.040 --> 0:10:21.480 they're obviously very keen to see more domestic manufacturing. 0:10:21.520 --> 0:10:23.880 And the fact we have such a long standing partnership means. 0:10:23.760 --> 0:10:25.480 We know each other well, we know what we do 0:10:25.559 --> 0:10:27.480 well together, and they're keen for us to do more, 0:10:27.720 --> 0:10:28.560 as they've indicated. 0:10:29.520 --> 0:10:33.040 Global foundary Seeo Timbering. Great to have you on Bloomberg Technology. 0:10:33.080 --> 0:10:36.840 Thank you very much. Now coming up, federal regulators are 0:10:36.840 --> 0:10:41.240 investigating whether it's Tesla's full self driving system is dangerous 0:10:41.440 --> 0:10:45.079 after a fatal crash involving the technology in late twenty 0:10:45.160 --> 0:10:59.160 twenty three. This is Bloomberg Technology a z Elon Must's 0:10:59.160 --> 0:11:03.600 house driver robo taxis in Austin. Federal regulators are investigating 0:11:03.640 --> 0:11:07.040 whether the system it calls full self driving is dangerous 0:11:07.360 --> 0:11:10.120 even with a human behind the wheel. That's after a 0:11:10.160 --> 0:11:13.840 fatal crash in November twenty twenty three involving a driver 0:11:14.120 --> 0:11:18.560 using the system. Bloomberg is publishing images and partial footage 0:11:18.559 --> 0:11:21.440 of that crash for the first time, which had warned 0:11:21.440 --> 0:11:23.920 the audience the content you're about to see, which Bloomberg 0:11:23.960 --> 0:11:28.000 News obtained via a public records request may be disturbing 0:11:28.240 --> 0:11:43.160 to some viewers. A Tesla Model Y with full self 0:11:43.240 --> 0:11:47.000 driving engaged round the curve at highway speed. The sun 0:11:47.160 --> 0:11:51.720 was low, the visibility was poor. The car didn't stop. 0:11:53.120 --> 0:11:57.360 Moments later, the Tesla using FSD hit seventy two year 0:11:57.400 --> 0:12:01.640 old Jonah Story, who is standing helping direct traffic at 0:12:01.640 --> 0:12:04.880 the scene of an earlier crash outside of Phoenix. She 0:12:05.040 --> 0:12:08.760 was pronounced dead at the scene. Bloombergs Crey Trudell, who 0:12:08.800 --> 0:12:11.000 broke the story with Donahle, joins us now for today's 0:12:11.040 --> 0:12:13.640 Bloomberg Big Take. And I think the most important question, 0:12:13.640 --> 0:12:16.520 the question that we are getting most is why is 0:12:16.559 --> 0:12:20.040 it important that we release the details of a crash 0:12:20.360 --> 0:12:23.240 that happened in November of twenty twenty three. 0:12:23.720 --> 0:12:28.679 Great, Yeah, there's a lot of pushback on that, you know, 0:12:29.280 --> 0:12:32.960 for the obvious reasons of yeah, it's now June twenty 0:12:33.000 --> 0:12:36.600 twenty four, right, and yet what makes the twenty five 0:12:36.840 --> 0:12:40.760 very significant excuse me, twenty twenty five. What makes us 0:12:40.800 --> 0:12:45.400 crash very significant for Tesla is the fact that this 0:12:45.480 --> 0:12:49.520 is something that led to a federal investigation. This investigation 0:12:49.640 --> 0:12:54.080 is ongoing, and this speaks to the sort of complexities 0:12:54.160 --> 0:12:58.360 of the way that the US has approached regulating this technology. 0:12:58.440 --> 0:12:58.720 Right. 0:12:58.840 --> 0:13:00.800 I think when you listen to you on Must talk 0:13:00.880 --> 0:13:04.840 about his driverless ambitions, he talks about, you know, regulatory 0:13:04.880 --> 0:13:07.600 approval and sort of gives this impression that there are 0:13:07.640 --> 0:13:12.400 these hurdles that that Tesla needs to clear as long 0:13:12.440 --> 0:13:15.760 as you're making your cars with things like steering wheels 0:13:15.840 --> 0:13:20.560 and you know, other components that sort of quote unquote 0:13:20.600 --> 0:13:23.440 normal car has. You can put a car on the 0:13:23.520 --> 0:13:26.360 road today and and say we think this is ready 0:13:26.360 --> 0:13:29.240 to be driverless. NITSA doesn't have to say, you know, 0:13:29.600 --> 0:13:32.920 safe or unsafe, thumbs up or thumbs down. And you 0:13:32.960 --> 0:13:35.920 know what they what they are doing is picking up 0:13:35.960 --> 0:13:40.240 on crashes that are reported like this one, picking out 0:13:40.679 --> 0:13:44.040 patterns in them. In this case, this crash along with 0:13:44.080 --> 0:13:47.520 some others. Uh, you know, there were consistencies in terms 0:13:47.600 --> 0:13:51.160 of conditions that the system seems to have trouble dealing with. 0:13:51.800 --> 0:13:54.760 And NISA is saying, look, we need to investigate this 0:13:54.840 --> 0:13:58.200 and whether or not your system is safe in these conditions, 0:13:58.240 --> 0:14:01.600 and that is a risk for investor and obviously you know, 0:14:01.679 --> 0:14:05.800 worthy of reporting, you know, putting aside the fact that 0:14:06.040 --> 0:14:09.480 you know This is a tragic situation, and you know, 0:14:09.600 --> 0:14:12.720 forty thousand people you know, die on us roads every year. 0:14:13.320 --> 0:14:16.200 Much as that's a worthy ambition to try and change that. 0:14:16.240 --> 0:14:20.120 If you're Tesla, you know, it's rare that we look 0:14:20.160 --> 0:14:23.640 at those desks as closely as we have the opportunity to. 0:14:23.720 --> 0:14:23.960 Here. 0:14:25.080 --> 0:14:28.320 It's emotional for seventy one year old Jonas Story's family, 0:14:28.520 --> 0:14:30.400 it is for Carl Stock as well, who is the 0:14:30.440 --> 0:14:34.560 Tesla driver. Craig push us forward though on the technology 0:14:34.560 --> 0:14:38.119 front here though, because there are key differences between for example, 0:14:38.600 --> 0:14:41.640 Lida with Waimo and what Tesla has been using and 0:14:41.720 --> 0:14:45.120 is in any way an interpretation is the technology and 0:14:45.120 --> 0:14:47.520 how it reacts to low sun and certain of those 0:14:47.960 --> 0:14:49.720 themes that you're seeing among these crashes. 0:14:51.080 --> 0:14:53.720 Yeah, that's a really key aspect of this story because 0:14:54.200 --> 0:14:56.400 you know, Elon Musk has has sort of taken this 0:14:56.480 --> 0:15:01.120 view that all Tesla needs is cameras, that it doesn't 0:15:01.240 --> 0:15:05.400 need more expensive radar and even more expensive light our sensors, 0:15:05.440 --> 0:15:08.120 and he's kind of out on a limb in this regard. 0:15:08.480 --> 0:15:12.520 Weimo has a very different approach. They, of course, you know, 0:15:12.680 --> 0:15:15.840 offer a system that does not have to be supervised, 0:15:15.840 --> 0:15:18.960 whereas full self driving to this point needs to be 0:15:19.200 --> 0:15:23.880 to be supervised by a human. And WEIMO because it's 0:15:23.960 --> 0:15:27.280 offering that level of capability and taking that approach of 0:15:27.360 --> 0:15:30.040 we want to put cars on the road without anybody 0:15:30.040 --> 0:15:33.800 behind the wheel. They have a much more robust, much 0:15:33.800 --> 0:15:37.760 more expensive sensor set. And I think, you know, part 0:15:37.760 --> 0:15:41.880 of the sort of question here is, you know, is 0:15:41.880 --> 0:15:46.560 is there sort of a safety shortcoming if you're relying 0:15:46.640 --> 0:15:49.800 on on these cameras, especially in conditions like this one. 0:15:49.840 --> 0:15:52.600 You can see from the video footage that it's quite hard, 0:15:53.080 --> 0:15:56.400 you know, to see what's ahead from from the cameras 0:15:56.480 --> 0:15:59.280 on the front of this model y and you really 0:15:59.320 --> 0:16:03.560 don't see the the pedestrian who was tragically killed until 0:16:03.560 --> 0:16:04.520 the very last moment. 0:16:05.920 --> 0:16:09.520 Pray Trudell, phenomenal reporting. We thank you for bringing it 0:16:09.520 --> 0:16:09.880 to us. 0:16:11.400 --> 0:16:14.520 Epic Games twenty twenty five edition of its Unreal Fest 0:16:14.600 --> 0:16:17.760 conference just kicked off yesterday in Orlando. The game developers 0:16:17.800 --> 0:16:21.280 showed off the tech behind the witcher for This Was Everywhere, 0:16:21.480 --> 0:16:24.200 and also showed off some of its AI created tools. 0:16:24.200 --> 0:16:26.960 Bloomberg caught up with CEO Tim Sweeney for an upcoming 0:16:27.040 --> 0:16:29.920 episode of the Circuit with Emily Chang. He weighed in 0:16:29.960 --> 0:16:33.560 on a competition in the AI space and also Apple strategy. 0:16:34.520 --> 0:16:37.640 Well AI is interesting because the Google's Android operating system 0:16:37.680 --> 0:16:40.400 is open to third party AI assistants, and we're seeing 0:16:40.520 --> 0:16:45.080 some really roverse competition. There is perplexity, and others provide solutions. 0:16:45.680 --> 0:16:49.800 Apple so far has been closed. Not only are they 0:16:50.080 --> 0:16:53.960 like stifling other companies from producing AIS after their works 0:16:54.040 --> 0:16:56.400 as in Reed and to iOS as here he does, 0:16:56.480 --> 0:16:59.080 but they're failing to deliver their own AI and that's 0:16:59.160 --> 0:17:02.080 very unfortunate. I think iOS is an area where the 0:17:02.200 --> 0:17:04.720 entire ecosystem, an entire platform should be opened up to 0:17:04.760 --> 0:17:07.280 third party competition. Apple should get out of the way 0:17:07.359 --> 0:17:10.120 and that awesome developers make Arson software and then let 0:17:10.160 --> 0:17:10.720 the best win. 0:17:12.720 --> 0:17:14.280 Now, let's talk about the wellness industry. 0:17:14.560 --> 0:17:17.639 It's forecast to hit nine trillion dollars by twenty twenty 0:17:17.640 --> 0:17:20.520 eight according to a study from Global Wellness Institute. But today, 0:17:20.520 --> 0:17:24.159 a leading software provider for businesses in that sector have 0:17:24.200 --> 0:17:27.440 announced a major rebrand to bring three companies Mind, Body 0:17:27.480 --> 0:17:30.920 Booker class Pass under a new parent brand called playlist Player. 0:17:31.040 --> 0:17:35.000 CEO Fritz Lamon joins us us Now and Fritz why 0:17:35.160 --> 0:17:37.000 do this? What is it that you're going to be 0:17:37.040 --> 0:17:39.480 able to do in terms of efficiency here when you're 0:17:39.480 --> 0:17:42.440 bringing these three names in a closer alignment. 0:17:43.600 --> 0:17:45.120 Well, you teed me up beautifully there. 0:17:45.720 --> 0:17:49.160 You know, we have built three highly successful different brands. 0:17:49.160 --> 0:17:52.320 Class Pass which gives people a way to book fitness 0:17:52.400 --> 0:17:55.200 spas and salons and even food and beverage take out 0:17:55.240 --> 0:17:59.280 increasingly Booker, which is vertical SaaS that's powering businesses that 0:17:59.440 --> 0:18:02.960 run spa salons or appointments. And then mind Body, whose 0:18:03.040 --> 0:18:05.000 bread and butter is giving you know, kind of the 0:18:05.000 --> 0:18:09.159 operating system to the wellness industry or mostly studio fitness owners, 0:18:09.160 --> 0:18:13.359 but also PT and others serving up wellness. And so 0:18:13.440 --> 0:18:15.640 it didn't make sense for us to have a brand 0:18:15.720 --> 0:18:19.840 that was just one of our three successful businesses. And 0:18:20.400 --> 0:18:23.000 really we wanted to sort of say, hey, look, we 0:18:23.080 --> 0:18:27.000 are now building a common platform of AI tools, an 0:18:27.040 --> 0:18:31.840 app partner, ecosystem, consumer distribution that can let us go 0:18:32.000 --> 0:18:36.720 serve experiences businesses. So yes, wellness businesses and the fitness 0:18:36.760 --> 0:18:38.960 and beauty and spons long world as we already do, 0:18:39.720 --> 0:18:42.480 but our aspiration, we believe we've earned the right to 0:18:42.520 --> 0:18:46.960 go even bigger and to build software for anybody delivering 0:18:47.000 --> 0:18:50.280 great experiences in their town, and to give consumers apps 0:18:50.320 --> 0:18:53.120 that help them discover and book this stuff and really 0:18:53.119 --> 0:18:55.600 give them a playlist for their life if you will. 0:18:56.520 --> 0:18:57.560 So, how much bigger does it get? 0:18:57.600 --> 0:19:00.000 You're already forty thousand salons of SPA seventy three thousand 0:19:00.160 --> 0:19:03.639 and gyms and workout places and across thirty countries. 0:19:03.880 --> 0:19:06.280 How much does this enlarge your total addressable market? 0:19:07.680 --> 0:19:09.879 I mean again, you team me up beautifully there. The 0:19:10.119 --> 0:19:13.240 wellness economy is massive right in the US. It's over 0:19:13.320 --> 0:19:16.000 two trillion dollars, and so I think we'd be fine. 0:19:16.080 --> 0:19:18.040 You know, our investors would would have a great outcome 0:19:18.040 --> 0:19:20.840 hopefully if we continue to execute within the wellness vertical. 0:19:21.359 --> 0:19:24.320 But the fact that we built these our scale has 0:19:24.320 --> 0:19:28.040 allowed us to build this industry leading AI stuff, this 0:19:28.320 --> 0:19:30.960 consumer aggregation, so we can help these businesses get more 0:19:31.000 --> 0:19:34.240 reach and distribution and not have to pay social media companies, 0:19:34.359 --> 0:19:37.720 you know, crazy ad rates to get users. The fact 0:19:37.760 --> 0:19:40.680 that we have big, big partnerships ecosystems so you can 0:19:40.680 --> 0:19:43.879 take advantage of premium tools that are built into our software. 0:19:44.160 --> 0:19:46.440 You know, we want to go much bigger. 0:19:46.200 --> 0:19:49.359 And you know there's twenty million small businesses in the US, 0:19:49.400 --> 0:19:51.880 and you know, only only a sliver of those are wellness, 0:19:51.920 --> 0:19:55.160 so we think it substantially increases our addressable market. 0:19:56.320 --> 0:19:59.880 Fritz, what's the total active user base of the combined 0:20:00.040 --> 0:20:03.040 and see how many people now will be on that platform. 0:20:04.600 --> 0:20:07.480 I can't speak to the specifics on even though you know, 0:20:07.520 --> 0:20:10.000 sharing metrics and financials my favorite topic. 0:20:10.040 --> 0:20:10.600 The powers that. 0:20:10.680 --> 0:20:14.240 Be have have have prevented me from sharing any any 0:20:14.320 --> 0:20:17.320 any specific details. But you know, we're we're reaching tens 0:20:17.320 --> 0:20:19.520 of millions of consumers in the US, We're operating in 0:20:19.560 --> 0:20:24.000 thirty one countries across multiple verticals, and we want to 0:20:24.000 --> 0:20:25.800 get an order of magnitude bigger in terms of our 0:20:25.800 --> 0:20:26.680 impact and our reach. 0:20:28.240 --> 0:20:30.600 IPO get the name out there. 0:20:31.800 --> 0:20:33.920 You know, we can't really comment on our plans. 0:20:34.040 --> 0:20:36.960 We have investors who are super long term focused and 0:20:38.280 --> 0:20:40.000