AI Accelerators, AI PCs and GameStop's Surge | Bloomberg Technology
ANNOUNCER: FROM THE HEART OF WHERE MONEY, INNOVATION COLLIDE, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED LUDLOW IS OFF TODAY. THIS IS "BLOOMBERG TECHNOLOGY." THE NVIDIA CEO SAYS THE COMPANY PLANS TO UPGRADE ACCELERATORS EVERY YEAR. WE BRING YOU DETAIL FROM TAIWAN. PLUS, WE SIT DOWN WITH THE CEO OF QUALCOMM TO DISCUSS AIPC'S.
GAMESTOP SHARES SURGE AS THEY UNVEILED THE POSITION IN THE COMPANY. ALL OF THAT AND MUCH MORE AHEAD. THERE IS A SLOWDOWN IN MANUFACTURING THAT HELP SEND STOCKS TO THE UPSIDE. THE 10-YEAR YIELD COMING DOWN BY NINE BASIS POINTS. SOME SLOWING APPEARS TO BE GOOD NEWS FOR INVESTORS WHO WANT TO SEE SOME ABILITY FOR THE FED TO CUT RATES. I WANT TO SIGN A LIGHT ON THE PARENT COMPANY OF THE NEW YORK STOCK EXCHANGE, HITTING SOME LOWS OF THE DAY. THEY SEEM TO BE HAVING TECHNICAL GLITCHES. THINK OF BERKSHIRE HATHAWAY AND
SOME STOCKS IMPACTED TO THE TUNE OF A 99% DROP FOR A FEW SECONDS. WE WILL BRING YOU UPDATES THROUGHOUT THE OUR. I WANT TO SHINE A LIGHT ON INDIVIDUAL NAMES ON THE MOVE. GAMESTOP AT ONE POINT WAS UP MORE THAN 100%. NOW WE ARE UP 30%.
HE TOOK TO READ IT TO POST A LONG POSITION IN GAMESTOP. THE CROWD GOES WILD. PARAMOUNT UP 7%. WE COULD BE GETTING NEARER THE DEAL FOR SKYDANCE AS DAVID ELLISON OFFERS A SWEET DEAL. THE STOCKS ARE OFF BY .5%. OTHER CHIP NAMES BEING
GALVANIZE BY ANNOUNCEMENTS OUT OF TAIWAN. THE KEY FOCUS IS COMING FROM NVIDIA AND AMD. ALL THE HEAVY HITTERS ARE PRESENT. HE TOOK THE STAGE LAST NIGHT WHEN HE STOLE THE SHOW INTRODUCING NEW TOOLS AND SOFTWARE MODELS.
>> YOUR FUTURE P.C. WILL BECOME AI. IT WILL BE CONSTANTLY HELPING YOU AND ASSISTING YOU IN THE BACKGROUND. THE P.C. WILL ALSO RUN APPLICATIONS THAT ARE ENHANCED BY AI AND YOUR P.C. WILL ALSO HOST APPLICATIONS WITH DIGITAL HUMANS THAT ARE AI'S. KATIE: HE ANNOUNCED THE NEXT -- CAROLINE: HE ANNOUNCED THE NEXT GENERATION PLATFORM FOR 2026. THE KEYNOTE WAS MEANT TO BE THE AMD CEO. SHE ANNOUNCED THE COMPANY WILL
SPEED UP THE ROLLOUT OF NEW PROCESSES. LET'S GET THE LATEST. DANA JOINS US. IT FELT AS THOUGH HE ORGANIZED HIMSELF EVEN THOUGH HE WAS THE KEYNOTE TALKER OF THE PREVIOUS YEAR. IT SEEMS TO BE THE PACE OF
ANNOUNCEMENTS THAT INVESTORS LIKE. >> YES. I THINK IT WILL BE TRICKIER TO KEEP TRACK OF ALL OF THE CODENAMES AND PROJECT NAMES.
WE ARE ALREADY TALKING BLACK WILL ULTRA AND RUBEN EVEN THOUGH THE 2024 CHIPS ARE STILL FORTHCOMING. THE ROADMAP KEEPS GETTING LONGER. THEY ARE COMMITTING TO ANNUAL REFRESH CYCLES. CAROLINE: THAT SEEMS TO BE WHAT PEOPLE WANT TO SEE. WHAT WAS IT LISA SU LACKED GIVEN THE STOCK REACTION THAT JEN-HSUN HUANG IS ABLE TO BRING? IS IT JUST THAT NVIDIA IS SO DOMINANT WHEN IT COMES TO DATA CENTERS? >> ABSOLUTELY. NVIDIA IS THE REIGNING LEADER
IN THE AI SPACE. I DO NOT KNOW THAT IS CHANGING ANYTIME SOON. THIS IS A STUDY IN DIFFERENT LEADERSHIP STYLES. HE IS SEEN AS THE EMBODIMENT OF NVIDIA WHERE LISA SU SURROUNDED HERSELF WITH THIS LARGE COLLECTION OF HEAVY HITTER INDUSTRY PARTNERS.
NOT TO DENIGRATE THAT APPROACH BUT IT HAS BEEN INTERESTING TO OBSERVE TWO DIFFERENT APPROACHES. CAROLINE: TWO PEOPLE WHO COME FROM TAIWAN BOTH SPEAKING IN TAIWAN AND ARE IN SOME WEIGHT RELATED WHICH IS AN EXTRAORDINARY THING TO CONSIDER, THE FACT THAT JEN-HSUN HUANG AND LISA SU ARE VAGUE COUSINS. THEY ARE TRYING TO STEAL THE LIMELIGHT OF ARTIFICIAL INTELLIGENCE IN THE FUTURE. IS THE AI P.C. MANAGING TO LAND? THAT SEEMED TO BE WHERE SHE WAS SHINING. >> I DON'T THINK JUST YET. PARTLY BECAUSE THEY ARE NOT
AVAILABLE. PARTLY BECAUSE THE COMPANIES CANNOT SPEAK CLEARLY TO WHAT THE SOFTWARE APPLICATIONS ARE EXACTLY. RIGHTLY OR WRONGLY, IT MIGHT SEEM TO SOME PEOPLE LIKE A SOLUTION IN NEED OF A PROBLEM. I DO NOT KNOW THAT WILL BE TRUE LONG-TERM. I THINK YOU HAVE THESE CHIPS. THEY HOLD GREAT PROMISE.
I DO NOT THINK THE SOFTWARE APPLICATIONS ARE AS OBVIOUS. I DO NOT THINK NVIDIA HAVE TO PERSUADE ANYBODY OF THE UTILITY OF ITS CHIPS. CAROLINE: ALWAYS NAMING THESE WITH CODENAMES OF PROMINENT, OFTEN DIVERSE SCIENTISTS. I'M INTERESTED IN WHO WINS FROM BOTH. THERE ARE SUPPLIERS WHO SERVE BOTH NVIDIA AND AMD. >> TAIWAN SEMI THE BIGGEST. THERE STOCK WAS MORE THIS
MORNING THEN EVEN AMD'S. CAROLINE: ARE WE WORRYING ABOUT BOTTLENECKS? >> NVIDIA DID TOUCH ON THAT IN THE KEYNOTE YESTERDAY. IT HAS BEEN A STRONG CONCERN. NVIDIA IS LOOKING TO ASSUAGE
THE PUBLIC INVESTORS THAT MEMORY WILL NOT BE SUCH A BOTTLENECK GOING FORWARD. CAROLINE: THEY KEEP ON PROMISING UPDATES IN 20 AND 2026. GREAT TO HAVE YOUR UPDATE. QUALCOMM PROCESSORS ARE POWERING DELL P.C.'S. ED LUDLOW CAUGHT UP WITH THE QUALCOMM CEO AHEAD OF SPEAKING AT THE CONFERENCE IN TAIWAN THIS WEEK. TAKE A LISTEN.
>> PEOPLE WILL NOT ONLY HAVE THE BEST PERFORMANCE AND USE CASE AND HAVE A SMALL THIN LAPTOP, BUT THEY WILL HAVE BATTERY LIFE FOR EVERYTHING THEY NEED TO DO. YOU WILL LEAVE YOUR CHARGER AT HOME. ED: FROM ONE TECHNOLOGY NERD TO ANOTHER, WHEN GRANDMOTHERS AROUND THE WORLD GO TO THE STORE AND BUY THEIR FIRST AI P.C. AND TAKE IT HOME AND TRY TO PLUG IN THE PRINTER, WILL IT WORK? >> OF COURSE, IT WILL. ONE OF THE THINGS IT IS IMPORTANT TO UNDERSTAND, THE JOURNEY WE HAVE BEEN ON MICROSOFT, IS IT IS A FUNDAMENTAL SHIFT FROM MICROSOFT CHANGING TO THE AI P.C. WE HAVE BEEN BRINGING THE
ECOSYSTEM ALONG. IT IS NOT ONLY THE PRINTERS, THE DOCKING STATIONS, THE GAMES. WE HAVE BEEN WORKING WITH MICROSOFT TO HAVE THE TOP 1200 GAMES OPTIMIZED ON THE PLATFORM. IT IS REALLY ABOUT THE FUTURE OF THE WINDOWS ECOSYSTEM.
THE THING TO THINK ABOUT IS NOT ONLY WILL YOU BE ABLE TO WORK THE OLD PRINTER BUT YOU WILL BE ABLE TO DO THINGS YOU WERE NOT ABLE TO DO BEFORE WITH YOUR OLD P.C. ED: WE RECOGNIZE THE FOLLOWING SNAPDRAGON XLE HAS. ON ANY SOCIAL MEDIA PLATFORM, I SEE IT. THEY STILL DOMINATE THE TRADITIONAL SALES CHANNELS FOR P.C. QUALCOMM IS IN A DIFFERENT PART OF ITS HISTORY. DO YOU THINK YOU CAN TAKE THEM ON IN THOSE CHANNELS WHERE THEY ARE ENTRENCHED? >> ON THE R&D, I BEG TO DIFFER. I THINK THE PERFORMANCE
LEADERSHIP IS CLEARLY WITHIN THE WINDOWS ECOSYSTEM. LOOKING ON THE CPU PERFORMANCE, DEVELOPED BY QUALCOMM, THE FASTEST ONE OUT THERE. THE AI INJURY IS ONLY POSSIBLE ON THE QUALCOMM PLATFORM -- THE AI ENTRY IS ONLY POSSIBLE ON THE QUALCOMM THAT FORM SO I BEG TO DIFFER. I WILL TELL YOU WHAT IS DIFFERENT. ONE ASPECT IS CONSUMERS ARE MORE SAVVY AND CONSUMERS COME FROM THE PHONE.
THE MOST IMPORTANT POSITION IS THE SMARTPHONE. SNAPDRAGON IS NOT SOMETHING NEW TO YOU. THE MOST IMPORTANT THING IS NOT THAT.
THE MOST IMPORTANT THING, YOU USUALLY SEE THE INCUMBENCY POSITION ON A P.C. IS ENTERPRISE. ENTERPRISE HAS US AND MICROSOFT 100% ALIGNED. USUALLY, ENTERPRISES HAVE BEEN SLOWER TO ADOPT NEW VERSIONS OF WINDOWS. MICROSOFT IS DOING A GREAT JOB WITH ENTERPRISES AROUND THE WORLD TO GET THEM TO EMBRACE THE COPILOT AND COPILOT PLUS, SO THAT IS A BIG TAILWIND DRIVING THE FUTURE INTO AI P.C. THAT IS GREAT NEWS FOR QUALCOMM AND BUILDS ON THE PLATFORM WITH SNAPDRAGON. CAROLINE:
THE QUALCOMM CEO SPEAKING WITH ED LUDLOW LAST WEEK. WE WILL BE TALKING ABOUT CRYPTO AND THE ELECTION, CRYPTO AND REGULATION. CAROLINE: CRYPTO LOBBYING IS IMPROVING ITS WARCHEST AHEAD OF THE ELECTION. RIPPLE JUST ANNOUNCED A DONATION OF $25 MILLION EACH TO THE PRO CRYPTO PAC WHICH AIMS TO BAT CANDIDATES FROM BOTH SIDES OF THE AISLE WHO WILL BETTER REPRESENT THE INDUSTRY'S INTERESTS. LET'S BRING IN KRISTIN SMITH, CEO OF THE BLOCKCHAIN ASSOCIATION.
IS THE LOBBYING LANDING? IT FEELS GIVEN THE ACTION LAST WEEK THAT MEMBERS OF CONGRESS ARE ALIGNING THEMSELVES MORE WITH CRYPTO. >> GREAT QUESTION. IT IS CLEAR THE MONTH OF MAY WAS A GAME-CHANGING MONTH FOR THE CRYPTO INDUSTRY. I THINK THE INDUSTRY HAS LONG FELT THE SEC AND OTHER REGULATORS HAVE NOT BEEN GIVING US A FAIR OPPORTUNITY TO WORK CONSTRUCTIVELY TO FIND THE RIGHT KIND OF REGULATION. THE INDUSTRY IS UPSET. WHAT WE HAVE SEEN THE PAST COUPLE OF YEARS AND IN THE PAST FEW MONTHS AND WEEKS IS CONTINUED INVESTMENT INTO THE TOOLS THAT CAN HELP BRING MORE CRYPTO FORWARD POLICYMAKERS INTO POWER AND ALSO CONSTRUCTIVELY WORK TO GET THE RIGHT KINDS OF POLICIES.
WE HAVE SEEN A TREMENDOUS AMOUNT OF INVESTMENT IN THE FAIR SHAKE PAC. VERY LARGE INVESTMENTS OVER THE LAST WEEK. THAT IS THE LARGEST INDUSTRY PAC OUT THERE OF ANY INDUSTRY. A WONDERFUL TOOL FOR THE INDUSTRY. WE ARE SEEING INDIVIDUAL CRYPTO USERS ARE FOLLOWING THESE ISSUES. DIGITAL CURRENCY GROUP DID A POLL A COUPLE OF AGO THAT FOUND ONE IN FIVE SWINGSE TATE VOTERS CONSIDER IT A BIG ISSUE IN THE UPCOMING ELECTION. CANDIDATES AND POLICYMAKERS ARE
SEEING THIS AND REALIZING THEY NEED TO BE MORE RESPONSIVE WORKING WITH THE INDUSTRY TO GET BETTER POLICY. CAROLINE: HOW MUCH DO YOU PUSH BACK THE DISCOMFORT? YOU ARE BUYING YOUR WEIGHT TO CONGRESS LISTENING TO YOU RATHER THAN IT BEING THE USERS OF CRYPTO TALKING OR WANTING. >> IT IS ALSO COMING FROM THE USERS OF CRYPTO. IT IS A 1-2 PUNCH. WE HAVE THE INDUSTRY WILLING TO PUT THE INVESTMENT IN. WE HAVE INDIVIDUAL VOTERS THAT
ARE WRITING MEMBERS OF CONGRESS, THAT ARE LOOKING ON CONGRESSIONAL AND PRESIDENTIAL WEBSITES TO SEE WHAT THE CANDIDATE BELIEVES ABOUT CRYPTO POLICY. THIS IS UNUSUAL. WE DO NOT SEE BANK CUSTOMERS DOING THIS. BUT WE ARE SEEING IT IN THE CRYPTO WORLD. IT IS BECAUSE CRYPTO IS MORE THAN AN INDUSTRY. IT IS AN ECOSYSTEM WITH USERS, DEVELOPERS, AND A LOT OF INDEPENDENT PEOPLE CONTRIBUTING TO THE NETWORKS. WE ARE EXCITED ABOUT THE NEWFOUND POLITICAL POWER.
AT LEAST, I KNOW I AM AS SOMEONE WHO HAS SEEN BOTH SIDES OF IT. I HAVE BEEN TELLING PEOPLE WE HAVE NOW GOTTEN TO THE BASE CAMP OF MOUNT EVEREST AND WE NEED TO GET TO THE TOP OF THE SUMMIT. WE HAVE A LONG WAY TO GO. IT IS A HARD JOURNEY AHEAD OF US. BUT WE ARE IN A MUCH BETTER POSITION THEN WE WERE EVEN A
COUPLE OF WEEKS AGO. CAROLINE: IS IT A HARD JOURNEY WHEN IT COMES TO THE CURRENT ADMINISTRATION? TALK US THROUGH WHAT SAB121 WAS PUSHING FOR. IT SEEMED FOR INDIVIDUAL BANKS TO OFFER CRYPTO INVESTMENTS BUT AT THE MOMENT IT IS COSTLY TO DO SO.
>> I THINK YOU SAID IT RIGHT. STAFF ACCOUNTING BULLETIN 120 ONE WAS GUIDANCE THAT CAME OUT OF THE SEC A COUPLE OF YEARS AGO. IT PUTS IN PLACE AN ACCOUNTING POLICY THAT MAKES IT IMPOSSIBLE FOR BANKS TO GO INTO THE BUSINESS OF CRYPTO. INHERENT IN CONSUMER PROTECTION
IS CONSUMER CHOICE. WE WANT TO HAVE MORE RESPONSIBLE INSTITUTIONS THAT HAVE THE ABILITY TO OFFER CRYPTO ASSETS ESPECIALLY NOW THAT WE HAVE THE SPOT BITCOIN ETF AND WILL HOPEFULLY SOON HAVE AN ETH ETF. CONGRESS REALIZED THIS POLICY WAS PASSED WITHOUT ANY PUBLIC INPUT. GAO VIEWED IT AS A RULE WHICH GAVE CONGRESS THE ABILITY TO USE A SPECIAL CONGRESSIONAL REVIEW ACT PROCESS TO TRY TO UNDO THE RULE. BOTH THE HOUSE AND SENATE IN A BIPARTISAN MANNER VOTED TO REPEAL THE SAMPLE 21 -- SAB 121 GUIDANCE.
AND FOURTHLY, BIDEN CHOSE TO VETO IT. -- UNFORTUNATELY, BIDEN CHOSE TO VETO IT. THE VETO WAS NOT RECEIVED WELL IN THE CRYPTO COMMUNITY.
IT IS INCREDIBLY DISAPPOINTING AND I THINK WE STILL HAVE WORK TO DO WITH THE ADMINISTRATION. CAROLINE: THANK YOU, KRISTIN SMITH. LET'S STICK ON POLITICS FOR A MOMENT AND WHAT IS HAPPENING IN THE UNITED KINGDOM.
A KEY COMPONENT OF BREXIT, NIGEL FOR ROCHE IT IS -- NIGEL FARAGE SAYS HE WILL STAND AS A CANDIDATE IN THE ELECTION ON THE COAST OF ESSEX AND STANDING FOR A CANDIDATE IN THE U.K. ELECTION. ONE THING TO AGAIN BECOME A MEMBER OF PARLIAMENT. HE WAS A BREXIT CHAMPION. WE WILL BRING YOU MORE ON THAT.
WE WANT TO TURN TO OTHER BREAKING NEWS WHEN IT COMES TO THE TRADING OF SHARES. THE PARENT COMPANY OF THE NEW YORK STOCK EXCHANGE STILL UNDER PRESSURE. NYSE EQUITIES CITING A PRICE BAND TECHNICAL ISSUE HALTING SEVERAL STOCKS. THEY NOW SAY THE IMPACTED STOCKS HAVE REOPENED OR ARE REOPENING. THEY SAY PRICE BANS TRIGGERED THE HALTS BUT THEY ARE NOW BEING RESOLVED. THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: TIME FOR TALKING TECH. SHEIN IS SET TO FILE FOR IPO IN LONDON AS SOON AS THIS WEEK. THE OFFERING COULD VALUE THE COMPANY AS MUCH AS $64 BILLION AND IT COULD BECOME ONE OF THE U.K.'S BIGGEST IPO'S EVER. IT WAS LOOKING AT LONDON AFTER JUDGE IT UNLIKELY THE SEC WOULD APPROVE A NEW YORK PUBLIC OPENING. SHARES OF GAMESTOP ARE SURGING AFTER IT POSTED WHAT APPEARS TO BE A $160 MILLION POSITION IN THE RETAILER.
IT SHOWED A STAKE OF 5 MILLION SHARES POSITIONING IT AS ONE OF THE COMPANY'S FIVE BIGGEST INVESTORS. SHARES OF PARAMOUNT ARE TRADING HIGHER. DAVID ELLISON'S LATEST OFFERING INCLUDES THE OPTION FOR SHAREHOLDERS TO CASH OUT FOR ABOUT $15 A SHARE.
IT IS THE LATEST ATTEMPT BY ELLISON TO SWEETEN THE TERMS OF THE DEAL HAS FACED OPPOSITION FROM SOME INVESTORS ON. IT IS A 26% PREMIUM TO FRIDAY'S CLOSING PRICE AND ONLY ON SOME SHARES. FOR MORE ON THE STORY, WE ARE PLEASED TO WELCOME CHRIS PALMERI. IS THAT WHY WE HAVE NOT SEEN THEM FLING THEMSELVES TO THAT PRICE? >> PEOPLE WILL NOT BE ABLE TO SELL ALL OF THEIR SHARES AT THAT PRICE. FOR THERE STILL A LOT OF UNCERTAINTIES.
WE KNOW SOME OF THE POINTS BUT WE DO NOT KNOW EVERYTHING. THIS AMOUNTS TO A GIANT TAKEOVER OF THIS STORY TO COMPANY. DAVID ELLISON WILL CONTROL NOT JUST THE CONTROLLING SHARES BUT THE MAJORITY OF THE STOCK AND THE BUSINESS. AT 41 YEARS OLD, HE HAS A LONG ROAD AHEAD OF HIM RUNNING THIS BUSINESS. THAT IS KIND OF THE BIG TAKE. CAROLINE: HE IS NOT DOING IT ALONE. REDBIRD CAPITAL AND HIS FATHER,
LARRY ELLISON, PUTTING UP A LOT OF THE CASH. DOES SKYDANCE GET FOLDED INTO PARAMOUNT AND SOME OF THE DEBT IS PAID OFF, BUT WHAT DOES THE FUTURE OF THE BUSINESS LOOK LIKE? >> WE DO NOT HAVE ANSWERS ENTIRELY. WE KNOW THEY WILL BE MAKING SOME CHANGES. THERE COULD BE IDEAL FOR THE PARAMOUNT+ STREAMING SERVICE WITH ANOTHER STREAMING COMPANY.
THERE COULD BE SALES OF OTHER ASSETS. THAT HAS COME UP QUITE A LOT. I SURE THIS WILL BE POSITIONED AS DAVID ELLISON AND HIS PARTNERS INVESTING IN THE FUTURE OF THE CONTENT OF PARAMOUNT SO THERE WILL BE A LOT OF TALK ABOUT MOVIES AND TV SHOWS. CAROLINE: THE HOLDOUTS, THE VALUE INVESTORS, THE PEOPLE WHO HAVE BEEN IN THE STOCK A LONG TIME AND STILL NEED PERSUADING, WHAT ARE THEY WORRIED ABOUT? >> MASSIVE DILUTION. THE RED STONES ARE GETTING BOUGHT OUT AT A PREMIUM.
IT COULD BE MUCH HIGHER THAN WHAT SHARES ARE TRADING AT NOW. EVERYONE WILL LOOK TO GET SOME MONEY OUT. BUT THEY ARE LARGELY STUCK WITH THE BUSINESS THEY HAVE LESS CONTROL OVER THEN BEFORE THE DEAL BECAUSE ELLISON WILL OWN SO MUCH OF IT. CAROLINE: WE WILL HAVE TO SEE HOW THE INVESTORS RESPOND. INTERESTING TO SEE HOW THIS CONTINUES TO UNFOLD. YOUR TEAM HAS BEEN LEADING THE CHARGE. THANK YOU FOR THE LATEST ON
PARAMOUNT. LET'S GO BACK TO GAMESTOP. IT IS SURGING. ROARING KITTY OR DEEP VALUE IS BACK IN THE BET IT WOULD SEEM, TAKING A SCREENSHOT OF HIS BUSINESS. WE WILL HAVE DETAILS NEXT. LET'S LOOK AT WHAT IS HAPPENING WITH SPOTIFY STOCK TODAY. EUROPEAN COMPANY TRADED IN THE UNITED STATES. IT IS RISING AT THE PRICE HIKE
WILL BE SUPPORTING REVENUE GOING FORWARD. THE STREET LIKING SOME OF THE NEWS. BLOOMBERG INTELLIGENCE SAYING THE DECISION DEMONSTRATES PRICING POWER AS MUSIC STREAMING REMAINS UNDERPRICED.
>> WHEN APPLE LAUNCHED THE NEW IPAD PROB MINI, ONE OF THE BIG QUESTIONS WAS WHETHER IT COULD REPLACE THE LAPTOP. AFTER ONE WEEK, I CONCOMITANTLY SAY IT CAN REPLACE LAPTOPS FOR MOST PEOPLE IN MANY USE CASES. A NEW DRIVER IS THE KEYBOARD. IT HAS A BIGGER TRACKPAD MAKING IT MORE LIKE THE MACBOOK AIR OR PRO. THE OTHER THING IS STAGE MANAGER. APPLE HAS MADE MAJOR IMPROVEMENTS TO THE
MULTITASKING INTERFACE THAT LETS YOU RUN MULTIPLE WINDOWS AND MOVE THEM AROUND. APPLE HAS SUPPORT FOR MORE THAN FOUR WINDOWS AT ONCE AND FEATURES TO MAKE THE IPAD PRO A TROOP PROBE VICE WITH THE OTHER THING IS A BIGGER SCREEN. WHILE 13-INCH DISPLAYS MIGHT BE ENOUGH FOR STUDENTS, VIDEO EDITORS, PHOTOGRAPHERS, OR PEOPLE LIKE MYSELF WANT AN EVEN BIGGER DISPLAY. FOR IT TO TAKE OFF, IT WILL NEED A COMBINATION OF BETTER MULTITASKING PLUS A 16-INCH VERSION TO MATCH THE MACBOOK PRO. ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." LET'S CHECK IN ON MARKETS. THEY ARE DOING WELL. WE ARE COMING OFF THE HIGHS BUT
STILL UP .2% ON THE NASDAQ 100 AND WE ARE SEEING OPTIMISM AROUND DATA COMING FROM THE U.S. ECONOMY. NOT BEING AS STRONG AS WE HAVE SEEN, DOES THAT LEAVE THE FEDERAL RESERVE ROOM TO CUT RATES LATER IN THE YEAR? BIG TECH IS LEADING THE CHARGE. THE 10-YEAR YIELD IS DOWN NINE POINTS. A LITTLE RISK ON SENTIMENT AROUND CRYPTO. LET'S LOOK AT INDIVIDUAL MOVERS.
APPLE UP MORE THAN A PERCENTAGE POINT AS GOLDMAN SACHS SEEMS TO BE GETTING EXCITED LOOKING AHEAD TO THE ANNOUNCEMENTS APPLE MIGHT MAKE. WE THINK AI WILL BE ONE OF THE INTERWEAVES WITH SIRI. JENSEN HUANG STEALS THE SHOW FROM LISA SU. NVIDIA ANNOUNCES FURTHER DEVELOPMENTS IN CHIPS.
GAMESTOP UP 26%. THEY ARE SURGING AFTER KEITH GILL, AKA ROARING KITTY, CHAIRED A POST ON REDDIT SHOWING WHAT APPEARS TO BE A $160 MILLION POSITION IN THE COMPANY. LET'S BRING BAILEY IN. >> HE IS BACK FOR THE FIRST TIME IN ALMOST THREE YEARS POSTING ON REDDIT. THERE IS AN INABILITY TO VERIFY IF IT IS KEITH GILL AND REAL. THE MAIN UNCERTAINTY IS THE
LAST TIME HE POSTED AN UPDATE IT WAS ABOUT $34 MILLION, SO A HUMONGOUS JUMP IN TERMS OF THE ACTUAL VALUE UNDERLYING THE POSITION, IN ADDITION TO THEIR IS $45 MILLION IN CASH. IT DROVE A FLURRY OF TRADING ACTIVITY. IT OPENED UP 75%. CLOSER TO 30% FOR GAMESTOP, TRACKING SOME BUYING AND SELLING ON APPS LIKE FIDELITY. THAT SHOWING MODEST ORDERS.
IT DOES NOT FEEL LIKE THE 2021 CRAZE WHERE INVESTORS WERE RUSHING TO BUY. THE STOCKS ARE WELL BELOW THE ALL-TIME HIGHS IN 2021. CAROLINE: I'M LOOKING AT THE BIGGEST HOLDERS FOR NAMEPLATE GAMESTOP. HE MADE HIS NAME BECOMING THE GAMESTOP LEADER. WHERE? I LOVE THE STORY FROM A TECHNOLOGY PERSPECTIVE BECAUSE IT IS BEING DRIVEN TO US BY SOCIAL MEDIA.
ORIGINALLY, IT WAS X MAKE. NOW IT IS -- ORIGINALLY, IT WAS X IN MAY. NOW, IT IS REDDIT. I WONDER WHAT IS NEXT. >> MAYBE HE POSTS A YOUTUBE VIDEO AGAIN FOR THE FIRST TIME IN THREE YEARS. THE MAIN THING THAT STANDS OUT TO MEET IS THE MAY FLURRY LASTED TWO DAYS AND QUICKLY GAVE BACK THE BULK OF THE GAINS. GAMESTOP TOOK ADVANTAGE OF THAT. CAN KEITH GILL FIND A WAY TO KEEP MOMENTUM GOING INTO EARNINGS, AND WHETHER THIS IS GOING TO BE A FLASH IN THE PAN THAT LASTS TWO DAYS OR DOES HE RETURN TO YOUTUBE AND BRING BACK A NUMBER OF RETAIL INVESTORS GIVEN HOW DIFFERENT THE UNDERLYING DYNAMICS ARE NOW COMPARED TO EARLY 2021? CAROLINE: FOR NOW, OTHER COMPANIES DOING WELL ON THE BACK OF IT. GREAT TO HAVE YOU BACK ON THE SHOW. TESLA ISSUED A STATEMENT
AGAINST THE I.S.S. WHO IS ON HIS PAY PACKAGE, ELON MUSK, AFTER THE PROXY URGED SHAREHOLDERS TO REJECT THE PAY PACKAGE. THERE IS A LONG STATEMENT ALL REGARDING A 2018 PERFORMANCE AWARD THAT ENDED UP BEING GINORMOUS, BUT LARGELY BECAUSE OF THE MARKET CAPITALIZATION OF TESLA AND THE STOCK SHARE PERFORMANCE BECAME PHENOMENAL. >> THIS AWARD FIVE YEARS AGO ROUGHLY WAS MADE WITH THE IDEA THAT IF ELON MUSK WERE ABLE TO GROW THE MARKET CAP OF TESLA BY AN ENORMOUS SUM, HE WOULD GET THIS GIGANTIC PAY PACKAGE. $56 BILLION IS THE NUMBER YOU SEE THROWN AROUND. AT THE TIME, THE PROXY ADVISOR SERVICES ADVISED AGAINST IT.
SHAREHOLDERS VOTED FOR IT ANYWAY. THE DIFFERENCE NOW IS THE GAIN IN QUESTION HAS ALREADY HAPPENED. YOU HAVE THE BOARD ASKING TO PAY ELON MUSK EVEN THOUGH IT HAS BEEN ACHIEVED. A BIG PART OF ELON MUSK'S ARGUMENT IS WE HAD A DEAL AND IT IS NOT FAIR TO GO BACK ON THAT DEAL. HE IS RESORTING TO A MORAL POINT. YOU HAVE I.S.S. AND GLASS LEWIS SAYING THIS IS AN INSANE AMOUNT OF MONEY, TOO MUCH MONEY EVEN GIVEN THE GAIN IN THE MARKET CAP , AND IT IS NOT CLEAR SHAREHOLDERS HAD ENOUGH INFORMATION.
ALSO, THE GAIN HAS ALREADY BEEN REALIZED SO IT IS A LITTLE HARD TO JUSTIFY IT. CAROLINE: THE BOARD AND TESLA SEEMS TO BE TRYING TO JUSTIFY I.S.S. HAS A LOT OF THINGS RIGHT SAYING THIS IS MOUNTAINOUS MARKET CAP GROWTH. THEY SAY TECHNICALLY I.S.S. IS GETTING SOMETHING WRONG WITH HOW THE PAYMENT IS BEING MADE. I.S.S.
IS GOING TO RESPOND I SUPPOSE AS TO WHETHER THEY ARE TECHNICALLY RIGHT OR WRONG. >> TESLA IS ENGAGED IN WHAT AMOUNTS TO A MARKETING CAMPAIGN. THE VOTE WILL LARGELY INVOLVE ELON MUSK. HE AND HIS BROTHER WILL NOT BE ABLE TO VOTE IN THE PROXY VOTE. TESLA IS CAMPAIGNING. THEY ARE ADVERTISING, PRODUCING VIDEOS, AND PRODUCING DOCUMENTS LIKE THIS PRESS RELEASE.
MORE IMPORTANTLY, ELON MUSK IS TWEETING ABOUT THIS ALL THE TIME. WE HAVE SEEN A LOT OF SEC FILINGS THAT ARE ESSENTIALLY ELON MUSK RESPONDING TO VARIOUS INFLUENCERS, PRO-TESLA BULLS TALKING ABOUT THE VOTE. THEY ARE TRYING TO REACH RETAIL SHAREHOLDERS WHICH IS THE MAIN BASE OF OWNERSHIP OF TESLA. CAROLINE: APPARENTLY, THEY HAVE TO DECIDE WHETHER ELON MUSK WAS GALVANIZED BY THE STOCK COMPENSATION. >> YOU HAVE A FEAR AMONG EVEN TESLA BULLS THAT IF THE PAY PACKAGE IS NOT APPROVED THAT ELON MUSK COULD WALK AWAY.
THAT IS SOMETHING ELON MUSK HAS HELPED STOKE BY SAYING THERE'S ALL THIS AI STUFF, MAYBE I WILL DO IT OUTSIDE OF TESLA, MAYBE NOT. YOU HAVE A GAME OF CHICKEN. ON ONE HAND, YVONNE IS SAYING I AM COMMITTED TO TESLA. ON THE OTHER, HE IS MAKING THESE THREATS. THERE IS A FEAR THAT IF HE WALKED AWAY, THAT WOULD HURT THE SHARE PRICE. SO MUCH OF THE COMPANY HAVE TO DO WITH ELON MUSK'S CULT OF PERSONALITY AND REPUTATION AS AN INNOVATOR. CAROLINE: THANK YOU.
THE FORD CEO SAYS HIS COMPANY IS JUST TWO YEARS AWAY FROM OFFERING TECHNOLOGY THAT WILL ALLOW DRIVERS TO TAKE THEIR EYES OFF THE ROAD AND THEIR HANDS OFF THE WHEEL. TAKE A LISTEN. >> WE ARE GETTING REALLY CLOSE. WE CAN DO IT NOW PRETTY REGULARLY WITH THE PROTOTYPE. BUT DOING IT IN A COST EFFECTIVE WAY IS PROGRESS WE NEED TO MAKE. WE HAVE TO BUILD THE ELECTRICAL ARCHITECTURE INSIDE THE COMPANY.
WE CANNOT DELEGATE TO SUPPLIERS ANYMORE. WE NEED ALL THE SOFTWARE CODE IN THE COMPANY TO CONTROL THE CAR. BUT IT IS CLOSE. CAROLINE: COMING UP, NEW YORK TECH WEEK KICKS OFF IN THE BIG APPLE.
WE WILL SPEAK TO KEY PARTICIPANTS IN THE EVENT. THAT IS NEXT. LET'S KEEP AN EYE ON STOCKS ON THE MOVE. AUTODESK IS HIGHER 7%. NO FINANCIAL STATEMENTS WILL BE RESTATED OR ADJUSTED FOLLOWING THE RESULTS OF AN INVESTIGATION. WE UNDERSTAND THE CFO HAD BEEN REASSIGNED AFTER THE INTERNAL ACCOUNTING PROBE, BUT A WEIGHT IS LIFTED.
WE ARE BACK AND TAKING AN ALL-INCLUSIVE LOOK AT WHAT EQUITY AND EQUALITY NEED FOR, -- MEAN FOR COMPANIES IN THE ECONOMY. ♪ NEW YORK TECH WEEK IS BACK OFFICIALLY KICKING OFF IN THE BIG APPLE THROUGHOUT THIS WEEK. ALL WEEK, WE WILL BE SPEAKING WITH THE FOUNDERS, INVESTORS, EXECUTIVES, TO DISCUSS THE ECOSYSTEM IN NEW YORK CITY, WHY THEY CHOOSE TO CALL N.Y.C. HOME. WE ARE JOINED BY JULIA SAMUELS. YOU ARE VERY MUCH IN THE WEEDS OF HOW WE CAN SUPPORT THIS, WHETHER IT IS FROM SELF-MENTORSHIP, COMING TOGETHER AS AN INDUSTRY, OR THE GOVERNMENT ROLE.
WHY IS NEW YORK CITY FEELING LIKE THE PLACE TO BUILD A STARTUP NOW? >> I THINK THERE ARE SO MANY REASONS. IT FEELS INCREDIBLY OPTIMISTIC HERE. THE ENERGY IS PALPABLE. I THINK A BIG PART OF THAT REASON IS PEOPLE WANT TO LIVE IN NEW YORK. WE HAVE SEEN THERE IS A LOT OF NET MIGRATION HERE.
RECENT DATA SHOWS ABOUT 50% OF -- 15% OF RELOCATING TECH WORKERS COME TO NEW YORK CITY. BECAUSE PEOPLE WANT TO BE HERE, THERE IS ENORMOUS ENERGY AROUND WHAT PEOPLE ARE BUILDING AND WHERE THEY ARE PLAYING IN -- PLUGGING IN ALL THROUGH THE SPECTRUM. CAROLINE: THOSE EVENTS COMING FROM OLD-SCHOOL TECH AND MODERN-DAY INNOVATORS THAT HAVE BEEN BASED IN NEW YORK STATE FOR A LONG TIME. THEN THERE ARE STARTUPS THAT CONTINUE TO COME.
ANDERSON HOROWITZ PUTTING THEIR BOOTS ON THE GROUND. I'M INTERESTED AS TO WHAT PEOPLE ARE BUILDING FROM A STARTUP POSITION. IS IT ALL ABOUT ARTIFICIAL INTELLIGENCE? >> ARTIFICIAL INTELLIGENCE IS BOOMING. THEY HAVE RAISED SOMETHING LIKE $27 BILLION COLLECTIVELY. THAT IS JUST THE AI SEGMENT OF OUR STARTUP ECOSYSTEM.
THE THING ABOUT NEW YORK THAT IS INCREDIBLY SPECIAL IS BECAUSE EVERY OTHER INDUSTRY IS HEADQUARTERED HERE OR HAS THEIR CENTER OF GRAVITY HERE, WE SEE STARTUPS BUILDING IN ALL OF THOSE SEGMENTS. THAT DIVERSITY OF THE TYPE OF COMPANY IS WHAT SETS OUR NEW YORK TECH SECTOR APART IN A WAY THAT I FEEL IS INCREDIBLY HEALTHY. CAROLINE: AND DIVERSITY OF PROBLEMS AND SOLUTIONS. WHAT ABOUT DIVERSITY OF TALENT? >> WE HAVE A LOT OF WORK TO DO. NEW YORK IS BETTER ON THAT THAN ANY OTHER MAJOR CITY. 22% OF THE WORKFORCE HERE IS
FROM UNDERREPRESENTED GROUPS WHICH IS SIGNIFICANTLY HIGHER THAN IN THE VALLEY OR BOSTON. WE HAVE A LOT MORE WORK TO DO. BUT OUR TECH COMMUNITY IS ENGAGED. WE PARTNER WITH NEW YORK CITY PUBLIC SCHOOLS TO GET THE KIDS, THE STUDENTS INTO THE COMPANIES MEETING THE RIGHT PEOPLE. THERE IS A HUGE PUSH TO TEACH COMPUTER SCIENCE IN OUR SCHOOLS. THERE IS A HUGE PUSH TO WORK WITH NONPROFITS ACROSS THE CITY TO GET MORE NEW YORKERS INTO THE TECH ECOSYSTEM.
AT THE BEGINNING, I TALKED ABOUT HOW WE ATTRACT A LOT OF PEOPLE WHO WANT TO MOVE HERE. WE ALSO NEED TO MAKE SURE NEW YORKERS WHO ARE BORN AND RAISED HERE HAVE ACCESS TO THESE JOBS AS WELL. CAROLINE: YOU HAVE A NEW FOCUS ON STARTUP N.Y.C. THAT SEEM TO BE A SUPPORT SYSTEM? >> WE ARE WORKING ON A PROJECT WHERE WE PUT SCAFFOLDING AROUND SOME PROGRAMMING FOR UNDERREPRESENTED FOUNDERS, FOUNDERS BUILDING IN INTERESTING MAYBE NONTRADITIONAL SPACES. WE DO NOT PUT MONEY INTO THOSE STARTUPS.
WE HELP THEM WITH OUR NETWORK. WE HELP THEM UNDERSTAND HOW TO NAVIGATE THE SPACE. TECH N.Y.C.'S NETWORK IS AMAZING. IT PRETTY MUCH REPRESENTS EVERYONE IN TECH IN NEW YORK. WE SAY WE WILL HELP YOU GET
ACCESS TO THOSE PEOPLE. NOT JUST PEOPLE IN TECH BUT THE ENTIRE BUSINESS SECTOR HERE WHICH IS THEIR CUSTOMERS, CLIENTS, MENTORS GOING FORWARD. THAT IS WHAT IS REALLY EXCITING. CAROLINE: I AM SAD ED IS NOT HERE. WE ARE TWO WOMEN W IN NEW YORK. WE WILL SAY NEW YORK IS THE
BEST TO BUILD TECHNOLOGY AND. SAN FRANCISCO IS DOING A FINE JOB REINVIGORATING AROUND AI. STILL THE HEADQUARTERS FOR THE BIGGEST COMPANIES IS THE WEST COAST. DOES IT MATTER? CAN ALL BOATS RISE? >> I THINK ALL BOATS HAVE TO RISE.
TECHNOLOGY JOBS ARE THE JOBS OF THE FUTURE. THIS IS WHAT THE WORLD ECONOMY LOOKS LIKE GOING FORWARD. ACROSS THE WORLD, WE NEED ALL BOATS TO RISE TOGETHER. I HEAR WHAT YOU ARE SAYING AND I AGREE WITH YOU. I LOVE NEW YORK. THERE ARE DIFFERENT VERSIONS FOR DIFFERENT PEOPLE OF HOW YOU WANT TO BUILD THIS.
HISTORICALLY, WE HAVE SEEN A LOT OF STARTUPS BUILDING HARD TECHNOLOGY ON THE WEST COAST AND TEND TO EXPAND HERE WHEN THEY ARE READY TO APPLY IT AND FIGURE OUT HOW TO MAKE IT PROFITABLE. WHO IS GOING TO BUY THE TECHNOLOGY, WHAT IT WILL LOOK LIKE IN PRACTICE. I THINK WE WILL SEE A LOT OF THAT HAPPENING IN NEW YORK. THERE IS A LITTLE THING, THIS IS HOW I THINK OF THE DIFFERENCE BETWEEN THE VALLEY AND NEW YORK.
I USED TO LIVE IN THE VALLEY, AND IT WAS GREAT. YOU MEET A LOT OF TECH PEOPLE WHO LIVE IN THE VALLEY. IN NEW YORK, YOU MEET A LOT OF NEW YORKERS WHO WORK IN TECH. THAT SPEAKS TO ME AND HOW I WANT TO BE IN THE WORLD. FOR EVERYONE, YOU SHOULD DO IT YOUR OWN WAY. CAROLINE: HERE IS TO ALL BOATS RISING AND ALL THE EVENTS THIS WEEK.
JULIE SAMUELS WITH ALL THE ENERGY THIS WEEK. LET'S HAVE A QUICK LOOK AT WHAT IS HAPPENING IN NEW YORK ON THE STOCK EXCHANGE. THE NEW YORK STOCK EXCHANGE IS SAYING TECHNICAL ISSUES HAVE BEEN RESOLVED. THERE WAS A GLITCH EARLIER HITTING COMPANIES SUCH AS BERKSHIRE HATHAWAY. SOME VOLATILITY, SOME HALTING. THEY NOW SAY THE TECHNICAL ISSUE HAS BEEN RESOLVED AT THE NEW YORK' STOCK EXCHANGE. WE STICK WITH NEW YORK TECH WEEK. WE TURN TO CRYPTO. THIS IS BLOOMBERG.
CAROLINE: WE WANT TO CONTINUE OUR COVERAGE OF NEW YORK TECH WEEK. JOINING US IS THE FIREBLOX CEO. IT HELPS FIRMS PROTECT DIGITAL ASSETS. WHY SOLVE THE PROBLEM FROM NEW YORK? >> NEW YORK IS THE FINANCIAL CENTER GLOBALLY. IT WAS IMPORTANT FOR US TO BE AS CLOSE AS POSSIBLE TO THE MARKET WHERE A LOT OF OUR CLIENTS ARE. NOW THE FIRST EARLY ADOPTERS OF OUR TECHNOLOGY IN NEW YORK.
CAROLINE: YOUR PREVIOUS COMPANY WAS PURCHASED BY CHECKPOINT. YOU HAVE BEEN BUILDING BUSINESSES A LONG TIME. YOU UNDERSTAND WHAT IS NECESSARY AND THE ECOSYSTEM NEEDED. WHAT ELSE IS HERE THAT ALSO SUPPORTS YOU? >> GOOD POINT. WITH THE PREVIOUS COMPANY, WE MOVED TO SAN FRANCISCO. FIREBLOCKS WE STARTED IN NEW
YORK. THE MAIN REASON WAS TO BE CLOSE TO THE CUSTOMERS. IN SAN FRANCISCO DOING A START UP, IT IS QUITE DIFFICULT TO MEET YOUR CUSTOMERS WHERE THEY ARE UNLESS YOU ARE SELLING DIRECTLY TO THE TECH SECTOR. ALL THE OTHER SECTORS ARE ON THE EAST COAST OR IN THE MIDWEST. THE SECOND COMPONENT IS IF YOU WANT TO HAVE GLOBAL
REACH, AND FIREBLOCKS IS A GLOBAL COMPANY, NEW YORK IS MUCH EASIER. MORE PEOPLE TRANSIT THROUGH NEW YORK. IT IS EASIER TO FLY TO EUROPE OR THE MIDDLE EAST. CAROLINE: THE TIME ZONE IS NICE.
WHAT ABOUT THE TALENT BASE? WE WERE TALKING ABOUT IMMIGRATION FOR PEOPLE WANTING TO BE WORKING IN THE TECH SECTOR COMING TO NEW YORK. IS IT STILL TOUGH TO HIRE HERE? >> I WOULD ARGUE FOR US IT IS EASIER TO HIRE HERE THAN OTHER AREAS. WE TRY TO FIND PEOPLE THAT HAVE THE COMBINATION OF TECHNOLOGY AND FINANCE. THERE ARE NOT THAT MANY PEOPLE WHO RAN COMPANIES AT SCALE. IN NEW YORK, YOU CAN FIND GREAT LEADERSHIP AND INDIVIDUAL WHO HAVE EXPERTISE IN FINANCE AND TECH. MAYBE SLIGHTLY LESS THAN IN THE BAY AREA, BUT IT IS ENOUGH AND THE COMBINATION IS CRUCIAL FOR US. CAROLINE:
I WOULD IMAGINE IT IS HELPFUL BEING AN AMTRAK RIDE AWAY FROM WASHINGTON. HOW IS LEGISLATION AFFECTING YOU? >> I HAVE BEEN ON THAT TRAIN QUITE A FEW TIMES THE LAST COUPLE OF YEARS. TO BE FAIR, I THINK WE HAVE SEEN DECENT MOMENTUM. I THINK THIS IS THE MOST IMPORTANT THING. WE ARE STILL SEEING THE GLOBAL REGULATORY LANDSCAPE IN THE U.S. CATCHING UP. THE APPROVAL OF THE ETF'S BY
THE SEC WAS STRONG TAILWINDS FOR THE INDUSTRY AND FOR US. BRINGING IT BACK TO NEW YORK, THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES HAVE BEEN ONE OF THE MOST SUCCESSFUL STATE REGULATORS IN THE U.S. THAT WE HAVE BEEN WORKING WITH CLOSELY THE LAST COUPLE OF YEARS. CAROLINE: I AM GLAD WE ARE MANAGING TO INTERWEAVE OUR POLITICS INTERSECTING WITH CRYPTO IN NEW YORK. GREAT TO HAVE TIME WITH THE FIREBLOCKS CEO. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY" FROM NEW YORK. DO NOT FORGET TO CHECK OUT OUR
PODCAST ON THE TERMINAL AND ONLINE, APPLE, SPOTIFY, IHEART. FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY."
2024-06-04 20:58
