Apple's Chip Partnership, Sky High Valuation for SpaceX | Bloomberg Technology
WE WILL ALSO BE TALKING TO THE CEO OF LAZARD, AS WELL AS DAVID COSTA HIM AT GOLDMAN SACHS. THIS IS BLOOMBERG. ♪ CAROLINE: LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." DETAILS THIS HOUR. THE VALUATION SPACEX GOES TO
NEW HEIGHTS, REACHING 300 $50 BILLION AFTER AN INSIDER DEAL. NVIDIA, MD, INTEL INVEST IN A START UP BRINGING LIGHT TO CHIPS. WE SIT DOWN WITH THE CEO. FIRST, THE MARKETS. CURRENTLY, WE SEE OPTIMISM AROUND THE NASDAQ 100.
CRYPTO AS WELL. ONCE AGAIN, ABOVE THE $100,000 LEVEL. RISK ON ACROSS THE BOARD. WE LOOK AT SOME OF THE POINTS CONTRIBUTORS UNDER THE HOOD OF THE NASDAQ 100. INTERESTING TO SEE THE KEY STOCKS ON THE MOVE. APPLE, CONTINUED TO HAVE A GOOD NOVEMBER AND INTO DECEMBER, WE SEE WHERE ON THE BACK OF THE REPORT APPLE IS LOOKING TO BE CREATING ITS OWN AI SERVER CHIPS DESIGNED ESPECIALLY FOR ARTIFICIAL INTELLIGENCE AND IS WORKING WITH BROADCOM. THIS IS IN SO MUCH MORE IN A MOMENT.
THE GEOPOLITICS AFTER THAT YELLEN INTERVIEW. ANNA RATHBUN IS WITH US. WE HAVE A RISK ON FIELD. WE SEE NVIDIA ON THE UPSIDE, APPLE IN THE GREEN, ALPHABET ON A TEAR. IS THIS WHERE WE SHOULD BE TRADING IT? >> THERE IS A LOT OF EXCITEMENT. AI HAS TRANSFORMED THAT. THE TROUBLE WITH CHINA COME NVIDIA HAVE IS TO BE IN THE CROSS NOT ABOUT NVIDIA OR EVEN THE U.S., IT IS ALL ABOUT CHINA.
WHEN I SAY THAT AI HAS TRANSFORMED, WE ARE TALKING ABOUT APPLE AND BROADCOM, AMAZON ALSO DESIGNING ITS OWN SHIPS. THERE'S A LOT TO BE EXCITED ABOUT. THE EXCITEMENT ABOUT AI IS NO LONGER A DREAM AS IT HAD BEEN IN 2023.
GOING INTO 2025, WE HAVE MORE TO LOOK FORWARD TO. CAROLINE: WHEN YOU'VE GOT RECORD HIGHS ON THE LIKES OF GOOGLE COME ALPHABET, CAN YOU BE JUICING THESE STOCKS ANY FURTHER? >> SOME OF THIS IS ABOUT THE TECH NAMES. SOME OF IT IS ABOUT RELATIVE VALUATION. THE QUESTION IN OUR MINDS AS ASSET ALLOCATORS, WHERE WOULD ASSETS GO? IF WE TAKE A LOOK AT THE GLOBAL ECONOMY AND OTHER AREAS OF THE GLOBAL MARKETS AS WELL AS SOME OF THE OLD ECONOMY STOCK NAMES HERE, EVEN THE FUNDAMENTALS DON'T LOOK AS EXCITING. THEY ARE NOT THE ONES DRIVING INNOVATION. IT IS HARD TO GET EXCITED ABOUT OTHER AREAS. YOU COULD SEE A LOT OF ASSETS
STILL DRIVING INTO TECH NAMES. ONE MORE THING, A LOT OF THE POLITICAL CHANGES. LINA KHAN, IT LOOKS LIKE SHE IS OUT. IT LOOKS LIKE A LOT OF THE HURDLES THAT HAPPEN TO BE THERE IN AN THE M&A AND TECH, THAT SEEMS TO BE REMOVED. NOT NECESSARILY ABOUT WHERE THE VALUATIONS ARE JUST FOR TECH, IT IS RELATIVE VALUATION AS WELL AS WHAT WILL THE ENVIRONMENT BE LIKE. CAROLINE: ALTHOUGH THE TRUMP ANNOUNCEMENT FOR DOJ HAS A MANY PEOPLE WORRIED FOR ALPHABET COME ALPHABET CONTINUES TO BE AT A RECORD HIGH.
ARE YOU NOT GIVEN PAUSE ON THE ANTITRUST SIDE OF THINGS FOR THAT NAME OR OTHERS? >> THAT PARTICULAR NAME I THINK IT IS WELL ON ITS WAY. I DON'T THINK NECESSARILY AUTHOR THAT WILL FIT INTO THAT BILL BUT I'M TALKING ABOUT THE GENERAL ENVIRONMENT FOR M&A AS WELL AS TECH. TO YOUR POINT, IT IS NOT ALL ROSES HERE. THERE IS THIS ASPECT OF FREEDOM
OF SPEECH. I DON'T KNOW HOW THAT IS GOING TO BE DEFINED IN 2025 FOR TECH ESPECIALLY SOCIAL MEDIA PLATFORMS. IT IS NOT ALL ROSES BUT CERTAINLY A LOT OF HURDLES HAVE BEEN REMOVED. CAROLINE: WHAT ABOUT SOME OF THESE WINNING TRUMP TRADES? WILL THAT BROADEN OUT? IS IT GOING AND OTHER PARTS OF THE AI ECOSYSTEM, ENERGY FOR EXAMPLE? >> I THINK WE HAVE TO SEE AI AND OTHER TECH ADVANCEMENTS ACTUALLY MAKE IT INTO THESE OLD ECONOMY NAMES OR EVEN OTHER TECH NAMES THAT ARE NOT SO MUCH CHIP-BASED. CONSUMER INNOVATION ON THAT AND WHERE THE RUBBER HITS THE ROAD, HOW AI WOULD ACTUALLY IMPACT THESE INDUSTRIES.
AND UNTIL THEN, IT FEELS LIKE WE ARE RUNNING ON FUMES. THAT IS PROBABLY WHY IT HAS NOT BROADENED OUT YET BUT WE WILL SEE IN 2025 IF THERE IS A DIFFERENCE. CAROLINE: YOU SAID THERE'S A LOT TO LOOK FORWARD TO IN 2025. WE STILL WRING OUR HANDS UP GENERATIVE AI OTHER THAN THE ABILITY TO HAVE AN ANALYST ASKED ME EVERY TIME I WANT TO RESEARCH. IT'S NOT ENOUGH IN TERMS OF THE RETURN ON INVESTMENT? >> I DON'T THINK SO. WE GOT A GLIMPSE IN 2024 WERE
ALL THIS HYPE ABOUT AI AND HOW THESE BIG COMPANIES ARE INVESTING IN AI WAS SIMPLY ENOUGH TO GET THE PRICE UP BUT THEN WE STARTED TO LOOK FOR OUR RELY ON THEM. I THINK THE MARKET MAY BE LOOKING FOR A LITTLE MORE IN 2025. WE LOVE TO SEE SOMETHING A LITTLE MORE CONCRETE. BUT I THINK THAT IS WHERE THESE TECH COMPANIES ARE RUNNING REALLY HARD BECAUSE THIS IS ABOUT MARKET SHARE AND ABOUT RUNNING TO SEE WHO THE FIRST MOVER IS. IF THEY DON'T CATCH IT FIRST, THEY WILL LAG BEHIND. I'M LOOKING FORWARD TO THE INNOVATION THAT IS TO COME.
CAROLINE: ANNA RATHBUN, THANK YOU. LET'S TALK ABOUT SOME OF THE NAMES WE REFERENCED A LITTLE BIT MORE. TESLA, QUALCOMM, NINTENDO. THESE ARE SOME OF THE GLOBAL STOCKS TO WATCH THE COMING YEAR. TRUCKING SOME 2000 COMPANIES FROM A VARIETY OF INDUSTRIES AND THEY HAVE IDENTIFIED 50 THAT ARE WORTH WATCHING CLOSELY.
MANY OF THEM ARE TECH COMPANIES. LET'S BRING IN MAX TO TALK ABOUT A TRUMP TRADE. IT IS UP 300%. TESLA HAS BEEN PHENOMENAL GROWTH SINCE TRUMP CAME INTO THE ADMINISTRATION. WHAT ARE THE ANALYSTS THINKING? >> GIVE A TRUMP TRADE AND A GENERAL VIBE-AI THING GOING ON IN THOSE FEEDING AND. PALANTIR SMA I CONNECTIONS AS WELL AS IT IS A DEFENSE CONTRACTOR.
THERE'S A CASE THERE THAT MAYBE THEY WILL DO BETTER. TESLA, ELON MUSK HAVING THE EAR OF THE PRESIDENT-ELECT IS A GOOD SIGN. WITH BOTH OF THOSE STOCKS, THERE IS A SENSE THAT THEY ARE VERY HIGHLY VALUED, PERHAPS RELATIVE TO WHERE STRUCTURAL REVENUE IS -- THEIR ACTUAL REVENUE IS.
IT ISN'T AS FAR AHEAD AS GOOGLE OR OPENAI. TESLA TALKS A LOT ABOUT SELF DRIVING CARS BUT THEY HAVE NOT SOLD ONE. THAT IS THE TENSION. CAROLINE: THE INTERESTING SHIFT WE HAVE SEEN THIS MAY BE A SLIGHT PULLBACK ON CHIP COMPANIES. A LOT OF EXUBERANCE IN 2023-2024 HAS BEEN FACTORED IN. BROADCOM, WORKING ON THE APPLE AI CHIPS. >> BROADCOM IS A HANDFUL OF COMPANIES I CAN TRY TO COMPETE WITH NVIDIA. IT HAS DIRECTLY BENEFITED FROM
THIS EXTREME EXUBERANCE IN AI. THE CHIP WORLD HAS A MORE DIRECT BENEFIT TO AI. THEY ARE SELLING CHIPS OR INTELLECTUAL PROPERTY BEING USED WHETHER OR NOT CHATGPT BECOMES A USUALLY TRANSFORMATIVE THING OR NOT.
MICRON IS IN THE MEMORY BUSINESS, NOT A DIRECT PARTICIPANT IN THE AI MARKET. ALTHOUGH IT JUST SIGNED A DEAL WITH THE BIDEN ADMINISTRATION TO GET A HUGE SUBSIDY FOR A CHIPS PLANT. JIM COMPANIES -- CHIP COMPANIES HAVE DONE WELL. CAROLINE:
WE THINK OF CONTENT, ITV BEEN LOOKED AT AND THE UNITED KINGDOM, NINTENDO. WHERE ELSE ARE WE LOOKING IN TERMS OF CONSUMER FOCUS? >> ENTERTAINMENT IS INTERESTING. IN TO NO, THE SWITCH 2. THE NEW VERSION OF THE CONSOLE. TWO OTHER NAMES, FOX.
WE HAVE BEEN READING A LOT ABOUT THE MURDOCH TRAUMA. FOX HAS DONE OK GIVEN THE GENERAL DECLINES IN TV CONSUMPTION, LINEAR TV CONSUMPTION AND SO ON. THE OTHER ONE IS IMAX COMES A LARGE GREEN MOVIE THEATER FORMAT. THAT IS A CHALLENGING INDUSTRY. MOVIE THEATERS ARE GOING THROUGH TRANSITION. THESE JAMES CAMERON MOVIES ARE BOUGHT INTO IMX AND HAVE BEEN DOING WELL. CAROLINE: MAX COME AMAZING HOW YOU HAVE MANAGED TO PULL THROUGH SOME OF THESE STOCKS FOR US. WE LOVE IT ON THIS TOP 50 TO
WATCH. SPACEX HITS AN ASTRONOMICAL $350 BILLION VALUATION. MORE ON THE MOST VALUABLE START UP IN THE WORLD.
CAROLINE: APPLE AND BROADCOM STOCKS ON THE MOVE TODAY AFTER ENDERS APPLE IS WORKING WITH BROADCOM TO DEVELOP ITS OWN SERVER CHIPS DESIGNED SPECIFICALLY FOR AI. THE LATEST REPORT COMING FROM THE INFORMATION. APPLE WILL BE DELIVERING AI CHIPS OF ITS OWN. THE NUANCE HERE WE ARE LEARNING WHO IS DOING IT? >> THIS MORNING APPLE ANNOUNCED IOWA'S 18.2, THE LATEST VERSION OF IOS, GOING TO BE AVAILABLE TODAY. DOWNLOAD AROUND 1:00 P.M.
EASTERN. YOU HAVE A LOT OF MODELS THAT RUN ON DEVICE ITSELF. THOSE CAPABILITIES CAN BE PROCESSED ON THE PHONE, IPAD, MAC INDEPENDENTLY BUT IN SOME CASES THEY NEED TO GO TO THE CLOUDLIKE WRITING TOOLS, SUMMARIZING TEXT, SUMMARIZING ARTICLES. FOR THAT YOU NEED YOUR OWN SERVER INFRASTRUCTURE.
WHAT APPLE HAS DONE IS CREATED TWEAKED VERSIONS OF THE M2 ULTRA CHIP AND THE M4 TO BE CLOUD-BASED SERVICE TO THE AI PROCESS. WHAT THIS REPORT SAYS TODAY IS THERE'S A NEW GENERATION VERSION OF THAT CHIP IN DEVELOPMENT FOR LUNCH ABOUT TWO YEARS FROM NOW. -- FOR LAUNCH ABOUT TWO YEARS FROM NOW. WHAT BROADCOM IS GOOD AT IS BRINGING THAT DATA IN AND OUT. APPLE AND BROADCOM HAVE BEEN WORKING TOGETHER FOR A NUMBER OF YEARS. BROADCOM EXIT COMBINED WI-FI AND BLUETOOTH CHIP. BROADCOM IS CONTINUING TO WORK
WITH APPLE ON RADIO FREQUENCIES, FILTERS. THIS IS JUST A CONTINUATION OF THE APPLE MODEM OR THE APPLE BROADCOM PARTNERSHIP I SHOULD SAY AND NEW GENERATIONS OF AR SERVERS. IT SHOWS APPLE’'S COMMITMENT TO ARTIFICIAL INTELLIGENCE IN DOING THIS MUCH IS POSSIBLE IN-HOUSE. CAROLINE: COMMITTING WE CAN GET CONNECTIVITY WHEREVER WE MIGHT BE. YOU POINTED OUT THE APPLE WATCH
AND HOW THEY WILL BE USING SATELLITE GOING FORWARD. >> BACK IN 2022 WITH THE IPHONE 14, APPLE LAUNCHED A FEATURE CALLED EMERGENCY SOS OVER SATELLITE. THAT ALLOWED THE FIRST ADVERTISEMENT FOR THAT SHOWED IS IF YOU ARE INJURED OR TRAPPED IN A REMOTE AREA WITHOUT CELLULAR CONNECTIVITY, CAN TAP INTO A SATELLITE NETWORK OPERATED BY GLOBAL START AND SEND A TEXT MESSAGE TO EMERGENCY SERVICES OR FILE SORT OF RADAR OR SOS TO EMERGENCY SERVICES AND THEY WILL FIND YOU. THEY EXPLAINED THAT EARLIER THIS YEAR WITH IOS18. IF YOU ARE A HIKER, YOU NEED TO BRING YOUR IPHONE WITH YOU.
THE WATCH IS GEARED TOWARD HIKERS AND THEY WILL UPDATE ABOUT A YEAR FROM NOW WITH ITS OWN SATELLITE CONNECTIVITY MEANING YOU CAN LEAVE THE PHONE BEHIND AND STILL HAVE THE PEACE OF MIND BEING ABLE TO REACH EMERGENCY SERVICES AND SAY ON THE GRID WHILE YOU ARE OFF THE GRID OUT OF CELLULAR RANGE. CAROLINE: MARK, GREAT TO HAVE SOME TIME WITH YOU. ALL THINGS APPLE. LET'S SHIFT TO SPACEX. INVESTORS HAVE AGREED TO IMPROVE -- ACCORDING TO AN EMAIL. YOU'VE BEEN REPORTING ON THIS VALUATION FOR A WHILE. WE GET CONFIRMATION. IT SEEMS AS A LOT OF PEOPLE DID NOT WANT TO BE SELLING OFF THEIR SHARES.
>> THAT'S RIGHT. ELON MUSK EVEN TWEETED A CONFIRMATION OF THIS. WE HAD REPORTED LAST WEEK THAT THEY WERE CLOSE TO FINALIZING THE $350 BILLION VALUATION. A WORLD RECORD FOR PRIVATE VALUATION THAT HAS NOT BEEN FINALIZED.
MY COLLEAGUE OBTAINED THE DOCUMENT CONFIRMING OUR SCOOP. IT IS 185 A SHARE. CAROLINE: WHICH IS A SIGNIFICANT UPTICK FROM $112 A SHARE WE WERE TALKING ABOUT JUST A MONTH AGO. ALL OF THIS OPTIMISM IS ALLOWING PEOPLE WHO HAVE BEEN LONG-TERM HOLDERS ON SPACEX TO CASH OUT.
DO WE HAVE ANY IDEA WHO THOSE PEOPLE ARE? SPACEX HAS BEEN BUYING BACK SOME OF THE SHARES BUT NOT AS MANY AS THEY WERE ANTICIPATED TO BE ABLE TO. >> SURE. IT IS UP $100 BILLION FROM WHERE THEY WERE TALKING A MONTH AGO. THERE IS BEEN A SURPLUS OF DEMAND BECAUSE, FIRST OF ALL, ELON'S TIES TO TRUMP, TRUMP'S ELECTION ARE SEEN AS VALUABLE TO SOME OF THE SHAREHOLDERS. AND SPACEX HAD HIS -- HAD A SUCCESSFUL ROCKET LAUNCH LAST MONTH. BOTH OF THESE THINGS
CONTRIBUTED TO THE PERCEIVED VALUE. A LOT OF THESE PRIVATE COMPANIES ARE NOT NECESSARILY VALUED BASED ON THEIR CUT METRICS BUT WHERE SUPPLY MEETS DEMAND AND OFTEN IT IS BASED ON A VISION FOR THE FUTURE. SINCE APPARENTLY THEY HAD ACCESS -- THEY DID NOT HAVE ENOUGH SELLERS. SO THEY HAD TO RAISE THE PRICE TO MATCH SUPPLY AND DEMAND. CAROLINE: GREATEST AMERICAN SUCCESS THIS WOULD JARED ISAACMAN, VANESSA CHIEF PICK FROM TRUMP IS CALLING SPACEX TODAY. KATIE ROOF, WE APPRECIATE IT. COMING UP, SCOTT STRAZIK IS GOING TO BE JOINING US.
THIS IS "BLOOMBERG." ♪ CAROLINE: A LOOMING PROBLEM FACING AI BLOOM, HOW THE TECHNOLOGY WILL BE POWERED. THE RACE IS ON. ONE OF THE KEY PLAYERS, GE VERNOVA.
THEY HOPE TO PRODUCE THE SORT OF POWER THAT CAN PUT AI IN ACTION. HERE TO TALK ABOUT IT, CEO SCOTT STRAZIK. ON THE BACK OF AN INVESTOR EVENT, OUTLINING THE DEMAND YOU WILL BE SEEING FROM AI. CAN YOU PUT THAT INTO CONTEXT HOW MUCH WILL BE INCREASING? >> AI IS ONE OF MANY FACTORS STRIVING FOR THE FIRST TIME IN 25 YEARS FOR SINGLE LOAD GROWTH. IT IS AI, ELECTRIFICATION OF TRANSPORTATION, HOMES, ALSO U.S. MANUFACTURING ARE PLAYING ROLES LEADING TO A SUBSTANTIAL INCREASE IN LOAD GROWTH RIGHT NOW. WE ARE SEEING A NUMBER OF BUSINESSES.
WE ARE SEEING SUBSTANTIAL INCREASE AND ORDERS FOR GAS POWER RIGHT NOW, A GRID INFRASTRUCTURE EQUIPMENT, WORKING WITH HYPER SCALARS GOING BACK TO THAT QUESTION ON HOW WE DECARBONIZE THIS INCREASED LOAD GROWTH THAT IS CLEARLY COMING THIS DECADE. CAROLINE: TO DECARBONIZE, IS THAT ABOUT NUCLEAR? >> IT IS GOING TO BE A LITTLE OF THE ABOVE. HE WILL BE A LOT OF DECARBONIZATION OF GAS THE NEXT DECADE WITH HYDROGEN, CARBON CAPTURE. AS AN EXAMPLE, WE HAVE A PLANT RIGHT NOW THAT WE WILL BE ABLE TO PARLAY SIMILAR TECHNOLOGY ON OUR GAS TURBINES OVER TIME. NUCLEAR IS IMPORTANT. WE HAVE 65 NUCLEAR PLANTS WITH OUR TECHNOLOGY RUNNING TODAY IN THE U.S.
WE CAN OPERATE THOSE PLANTS AND PROVIDE MORE ELECTRONS THIS DECADE. WE HAVE WHAT WILL BE THE FIRST MODULAR REACTOR THERE WILL BE COMMISSIONED THIS DECADE IN 2029. THAT WILL BECOME A BIGGER PART OF THE HYPER SCALE OR DEMAND CYCLE INTO THE 20 30'S AND WE ARE EXCITED ABOUT THAT. CAROLINE: PEOPLE OF AND HANDWRINGING THE LAST I CAN READ HOW MUCH CHINA HAS INVESTED IN NUCLEAR AND HOW U.S. HAS NOT.
HAVE YOU BEEN TALKING ABOUT THIS FOR A WHILE AND EVERYONE IS COME TO THE SAME REALIZATION? >> THE ACTIVITIES HAVE ACCELERATED IN THE LAST 24 MONTHS. I REMEMBER SITTING IN DUBAI AT CUP 28 WITH 20 HEADS OF STATES AND WE NEED TO TROUBLE THE NUCLEAR CAPACITY IN THE WORLD BETWEEN NOW AND 2050. THE SENTIMENT TOWARD NUCLEAR COMING THAT WAY BOTH WHETHER IT BE WITH BUSINESS OR GOVERNMENT. HIS INTELLECT THIS IS GOING TO BE OUR TIME FOR NUCLEAR.
WE ARE EXCITED ABOUT WHAT WE CAN DO TO MAKE THAT A REALITY. CAROLINE: WHERE PEOPLE NOT LOOKING? IT IS INTERESTING PERHAPS WOULD MISS IN THE WIT -- WEAKNESS IN THE WIND AREA. >> THE WIND AREA AT LARGE IS ONE THAT IS STILL GOING THROUGH MORE OF A MATURATION PROCESS, INDUSTRIALIZING THE PRODUCT AT SCALE RELATIVE TO GAS, RELATIVE TO NUCLEAR JUST HAVE LONGER LEGACIES. STRONGER SUPPLY CHAINS. STRONGER SAFETY AND QUALITY CULTURES AND THOSE SUPPLY CHAINS AND TOTALITY. WHEN YOU TALK ABOUT THESE DIFFERENT POWER GENERATION TECHNOLOGIES, WHERE PEOPLE ARE MISSING, HE COMES BACK TO THE GRID. REGARDLESS OF WHICH TECHNOLOGIES ARE GOING TO POWER THE SLOW GROWTH, WE NEED TO MAKE A MASSIVE INVESTMENT IN THE GRID IN THE YEARS TO FOLLOW.
PHYSICALLY AND GRID SOFTWARE. THOSE ARE BIG PARTS OF WHAT WE ARE INVESTING RIGHT NOW. CAROLINE: DOES THIS HAVE TO BE PUBLIC-PRIVATE PARTNERSHIPS? >> WE DO STAND FOR THOSE FOR SURE. THESE ARE BIG ELECTRICAL EQUIPMENT SYSTEMS THAT BUILT OVER 100 YEARS WITH PUBLIC-PRIVATE PARTNERSHIP ROLES.
A LOT OF THE INNOVATION NEEDS TO COME FROM US SO WE CAN'T WAIT FOR THE GOVERNMENT SO WE ARE INVESTING CONSIDERABLY IN GRID SOFTWARE AS AN EXAMPLE. CAROLINE: DOES THAT IMPACT PROFITABILITY? LONG-TERM THE ANALYST YOU ARE INVESTING TODAY ARE LOVING THE LONG TOMB FUTURE FOR MARGIN GROWTH -- LONG TERM FUTURE FOR MARGIN GROWTH. ARE YOU HAVING TO PUT MONEY INTO R&D? >> WE ARE INVESTING. WE ARE GOING TO GROW 20% IN
2025 BECAUSE THE MARKET IS TELLING US THERE IS REAL OPPORTUNITY TO YIELD A RETURN ON THAT INVESTMENT OVER TIME. THE AMOUNT OF ELECTRICITY THAT IS GOING TO BE NEEDED IN THE NEXT TWO DECADES PROBABLY CAN ONLY BE COMPARED TO THE PERIOD AFTER WORLD WAR II. IT IS SUBSTANTIAL. IT IS IMPORTANT FOR ECONOMIC GROWTH AND STABILITY IN THE WORLD. WE ARE INVESTING IN THE FUTURE
BY DOING IT WITH HIGH CONFIDENCE WE WILL YIELD A RETURN ON THAT INVESTMENT. CAROLINE: YOU GENERATE ABOUT 25% OF THE WORLD'S ELECTRICITY. WHAT DOES HE WAS LOOK LIKE COMPARED EVERYWHERE ELSE? >> IT REALLY IS AND ALL OF THE ABOVE THEME. WE ARE BUILDING OUT OUR MANUFACTURING FACILITY IN FOR GAS TURBINES IN GREENVILLE, SOUTH CAROLINA, INVESTING IN OUR NUCLEAR FACILITY IN WILMINGTON, NORTH CAROLINA, AND BUILDING THE LARGEST ONSHORE WIND TURBINE IN UPSTATE NEW YORK. THROUGHOUT THE U.S., WE ARE BUILDING STRONGER LOCAL MANUFACTURING TO SERVE THE GROWING MARKET NOT JUST FOR YOU AT JUST U.S.
BUT AS WE MAKE THESE INNOVATIVE INVESTMENTS, WE CAN EXPORT THAT TECHNOLOGY FOR THE WORLD. BOTH FOR ECONOMIC DEVELOPMENT THERE BUT ALSO FOR PEACE. CAROLINE: BIG THOUGHTS, SCOTT STRAZIK. >> THANK YOU FOR HAVING ME. CAROLINE:
THE CHIP THE POWERS ALWAYS LATEST SMARTPHONE IS NOT SO DIFFERENT FROM THE ONE THAT SET OFF BELLS IN WASHINGTON. THE DISCOVERY SUGGESTS WHILE WEIGHT IS STILL ABOUT FIVE IS BEHIND. A GROUP HAS BEEN FINED $45 MILLION FOR THE NATION'S FINANCIAL WATCHDOG FOR FAILING TO FOLLOW IN TIME IN -- ANTI-MONEY LAUNDERING RULES. THIS WAS ROUTINE REVIEW WAS NOT RELATED TO ACTUAL CASES OF MONEY LAUNDERING. CHINA'S STOCK MARKET WATCHDOG,
ORDERING THE COMPANY TO FIX ITS REFUNDS FIRST POLICY. IT ALLOWS CUSTOMERS TO CLAIM REFUNDS WITHOUT RETURNING GOODS. THE DECISION COMES AS A GROWING NUMBER OF SMALL MERCHANTS ARGUE THEIR PRACTICE REALLY HURTS THEIR BOTTOM LINE.
COMING UP, BACKING FROM THREE HUGE CHIPMAKERS. WE WILL BE SPEAKING WITH THE CEO MARK WHITE ON HOW HE'S BRINGING LIGHT TO CHIPMAKING. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: WELCOME BREAK TO "BLOOMBERG TECHNOLOGY." I’M CAROLINE HYDE IN NEW YORK. THE NASDAQ PUSHES HIGHER. RISK ASSETS GO HIGHER AS WE GET
THE INFLATIONARY PRESSURE COMING IN AS ANTICIPATED, NORTH OF 3% ON THE C.P.I. WE ARE CURRENTLY UP 1.6%. REALLY SOME OF THE BIG TECH NAMES LEAD US HIGHER. GOING TO THE INDIVIDUAL MOVERS, WE’VE GOT RECORD HIGHS OUT THERE ACROSS THE BOARD. A LARGE PART IS ON ALPHABET, FOUR STRAIGHT DAYS OF GAINS, THE BIGGEST WINNING FOUR-DAY STREAK WE’VE SEEN SINCE BACK TO MARCH 2023.
ENTHUSIASM AROUND THE QUANTUM INNOVATION BEING SEEN WITH THE WILLOW QUANTUM CHIP. ADD TO THAT, GEMINI 2.0 BEING RELEASED TODAY. INNOVATIONS IN A.I., ALL OF THIS SEEMS VERY MUCH A CIRCLE, DESPITE THE ANTITRUST OVERHANG. MOVING TO SOME OF THE INDIVIDUAL STORIES ON THE DAY, WE’VE BEEN LOOKING AT CHIP MAKERS AND NEWS COMING OUT, REITERATING WHAT’S ALREADY BEEN REPORTED, THAT YES, APPLE IS LOOKING AT A.I.-FOCUSED SERVER CHIPS, AND WHO DO THEY TURN TO?
LONG-TIME PARTNER, BROADCOM. WE’RE UP 6.3% ON THE BACK OF BROADCOM. THE VOLATILITY REMAINING AROUND SUPER MICRO AFTER THEY GOT THE EXTENSION TO GIVE THEIR FINANCIALS TO THE NASDAQ BY FEBRUARY. LET’S TALK MORE ABOUT THE PRIVATE SIDE AND THE CHIP QUESTION A LITTLE BIT MORE. AYER LABS HAS JUST RAISED MONEY IN ITS LATEST FUNDING ROUND, THE LIKES OF NVIDIA, A.M.D.
VENTURES, INTEL CAPITAL ARE THREE BIG CHIP COMPANIES USING WHAT IS THE NEXT TECHNOLOGY. AYAR LABS’ C.E.O. JOINS US NOW. I WANT TO GET THE CONTEXT FOR OUR VIEWERS. WHAT EXACTLY IS GOING ON HERE? HOW DOES PHOTONS, ULTIMATELY LIGHT, HELP REDUCE THE BOTTLE NECKS IN CHIPS AT THE MOMENT? >> FIRST, CAROLINE, THANKS FOR HAVING US HERE. I’M EXCITED TO BE HERE TALKING WITH YOU.
I THINK THE WAY TO THINK ABOUT THIS IS EVERYONE IS FAMILIAR WITH AND HAVE BEEN TRACKING ALL THE INNOVATIONS COMING OUT, THE EXCITING APPLICATIONS HAPPENING IN A.I. BUT THE A.I. APPLICATION HAS REALLY BROKEN THE BACK OF EXISTING COMPUTING INFRASTRUCTURE. WE’VE SEEN A LOT OF INNOVATION HAPPENING ON THE COMPUTE SIDE, SO PEOPLE LIKE NVIDIA BUILDING G.P.U.’S, AND WE’VE SEEN HOW THEY GET DEPLOYED IN HUGE A.I. DATA CENTER DEPLOYMENTS, SO TENS OF THOUSANDS OF G.P.U.’S. YOU HAVE TO CONNECT THEM ALL TOGETHER, SO NOW WE’RE AT A POINT TO WHERE THE BOTTLE NECKS ARE HAPPENING IN HOW YOU CONNECT THEM TOGETHER AND START TO DRIVE TO HIGHER PERFORMANCE, OVERALL SYSTEMS, MORE INTERACTIVE, A.I. MODELS. THESE BOTTLE NECKS SHOW UP AS
LOWER PERFORMANCE, HIGHER COSTS, AND DRIVE A LOT OF COST PRESSURE IN THE A.I. APPLICATION THAT’S NOT ON TOP OF IT. WE’RE LOOKING TO BRING THE INNOVATION TO SOLVE THAT. CAROLINE: HOW QUICKLY ARE WE TALKING ABOUT, HEARING IN THE NEXT COUPLE OF YEARS, MASS PRODUCTION? WE’RE BRINGING A LOW-ROLL INNOVATION TO THE HIGH-VOLUME SEMICONDUCTOR WORLD, AND PRODUCTS IN THIS ENTICE ALWAYS TAKE A FEW YEARS TO GET TO IT, AND THE WAY TO THINK ABOUT WHERE WE’RE AT RIGHT ANYWAY, WHAT DIFFERENTIATES US, WE HAVE A CHIP THAT WE SHIP TODAY. IT’S GOT THOUSANDS OF OPTICAL
DEVICES. WE’VE REALLY BROUGHT A LEVEL OF INTEGRATION AND PERFORMANCE THAT’S NEVER BEEN SEEN BEFORE, BUT WE’RE SHIPPING IN THE TENS OF THOUSANDS OF UNITS. THE MARKET DEMAND IS TENS OF MILLIONS. UP THE HIGH-VOLUME MANUFACTURERS, GLOBAL FOUNDRIES, INTEL FOUNDRY, WE’RE WORKING ON BRING THIS FORWARD AND SCALING IT IN THE NEXT FEW YEARS. THINK OF THIS AS STILL A COUPLE OF YEARS AWAY. CAROLINE:
WHO ARE YOU CURRENTLY SHIPPING TO? >> WE’RE SHIPPING ACROSS A NUMBER OF CUSTOMERS THAT WE STRATEGICALLY WORK WITH, AND HOW THEY’RE USING IT RIGHT NOW, IS ONE, MAKING SURE THE CORE TECHNOLOGY WORKS. WE INVENTED A FEW TECHNOLOGY, SO BEFORE YOU COMMIT TO DEPLOYING THAT IN HIGH VOLUME, YOU HAVE TO CONDUCT TIRES AND SAY, OK, THERE’S NEW ELEMENTS HERE. THERE’S INNOVATION WE’VE DONE. DOES IT ACTUALLY WORK? HOW IS IT YIELDING? HOW IS IT BEHAVING IN TERMS OF RELIABILITY? A LOT OF OUR CUSTOMERS ARE CONSUMING TENS OF THOUSANDS OF PARTS TO REALLY PROVE OUT THAT THIS TECHNOLOGY IS POISED TO SCALE INTO THE MILLIONS. CAROLINE: WHEN YOU THINK ABOUT NVIDIA, A.M.D., INTEL, ALL OF THEM FIERCE FRENEMIES, WE’RE ALL TO
ALL WORK EQUALLY TO GET ACCESS TO YOUR TECHNOLOGY? >> YEAH, I THINK THE WAY TO THINK ABOUT THIS IS EVERYONE’S REALIZING THAT A TRANSITION TOWARDS A NEW SCALE OF OPTICAL TECHNOLOGIES AND OPTICAL PRODUCTS IS VERY IMPORTANT FOR ALL OF THEIR FUTURE DEPLOYMENTS AND PRODUCTS. IS WE’VE ALWAYS VIEWED THIS AS BROADLY DEPLOYED AND YOU’RE BIT WICK OUT TECHNOLOGY. YES, YOU’RE RIGHT, THIS IS NOTORIOUS FOR FRENEMY ENGAGEMENTS, SUPPLIERS, PARTNERS, SOMETIMES YOU’RE COMPETING. I THINK THAT’S JUST HOW THIS WORLD WORKS, AND ULTIMATELY IT REWARDS THOSE WHO INNOVATE GENERATION AFTER GENERATION, AND WE’RE ON THE FOREFRONT OF BRINGING OPTICAL PRODUCTS TO THE BROAD MARKET, SO THAT’S HOW WE VIEW IT, AND WE SEE OUR PARTNERS REALLY WORKING CLOSELY AND WELL WITH US TO REALIZE THAT VISION. CAROLINE: YOU CAME OUT OF ACADEMIA WHERE
A LOT OF THIS WAS BORN. WHAT ABOUT THE PROFITABILITY, THE BUSINESS MODEL FOR YOU? WHAT LAYER ARE YOU GETTING PAID? >> YEAH, THAT’S A GREAT QUESTION. PART OF THE INNOVATION HERE IS THAT WE’RE BRINGING THE POWER OF SEMICONDUCTOR DESIGN, WHICH HAS DONE PHENOMENALLY WELL IN THE WORLD OF ELECTRONICS AND COMPANIES LIKE NVIDIA, A.M.D. BUT WE’RE BRINGING A PHOTONIC ELEMENT TO THAT.
WE SHIP A KNOWN GOOD CHIPLET, SO IT’S A SILICON CHIP WE SHIP TOE OUR CUSTOMERS, AND THEY QUESTION FROM GRATE THAT INTO THEIR PACKAGES, SWITCHES, MEMORY INTERFACES, G.P.U.’S. THIS REALLY BECOMES A UBIQUITOUS, LARGELY DEPLOYED PROLIFERATION OF OPTICAL TECHNOLOGIES, AND WE SELL A CHIP. CAROLINE: AT THE MOMENT, WHO MAKES THOSE CHIPS IS GLOBAL FOUNDRIES, INTEL. YOU’RE TALKING TO TSMC. WILL WE JUST SEE ALL OF THOSE THREE BE THE ONES THAT BRING YOU TO MASS PRODUCTION BY 2026? >> THAT’S RIGHT, I THINK THE OTHER THING TO LATCH ON TO HERE IS THAT THE LEADING EDGE FOUNDRIES ARE GETTING INVOLVED. GLOBAL FOUNDRIES, INTEL FOUNDRIES, TSMC, THEY’VE ALL MADE PUBLIC STATEMENTS ABOUT WHAT THEY’RE DOING, AND WE’RE WORKING CLOSELY WITH ALL OF THEM.
YEAR EXCITED ABOUT HOW THIS IS COMING TOGETHER. AND YES, WE NEED THE SCALE OF MANUFACTURING TO DELIVER TO THE TENS AND HUNDREDS OF MILLIONS OF UNITS THE MARKET IS DEMANDING A FEW YEARS IN THE FUTURE. CAROLINE: MARK WADE, REALLY APPRECIATE YOUR TIME. MEANWHILE, SHIFT OUR ATTENTION TO G.M.
SHUTTING DOWN ITS CRU ISE DIVISION. THEY WANT ON OFFER AUTONOMOUS DRIVER AS THE FUTURE OF MODELS. IT WILL SAVE THE COMPANY OVER A BILLION DOLLARS IN ANNUAL COSTS. COMING UP, WHAT’S IN STORE FOR THE I.P.O. MARKET MING INTO 2025? THE CO-FOUNDER OF F.P.V. VENTURES IS WITH US.
ONLINE ON APPLE, SPOTIFY, AND IHEART. THIS IS BLOOMBERG. AFTER POTENTIAL FILINGS FROM COMPANIES LIKE KLARNA, WHAT’S THE OUTLOOK FOR TECH I.P.O.’S HEADING INTO THE NEXT YEAR? HOW LONG WILL THE VALUATIONS REMAIN 10 HEADY? WESLEY CHAN IS WITH US FROM FPV VENTURES. YOU’VE GOT A LOT OF THOUGHTS. WE ARE GETTING EXCITED FOR POTENTIALLY I.P.O.’S TO REOPEN, PARTICULARLY AS WE SEE A NEW ADMINISTRATION. EVERYONE IS TALKING ABOUT MORE
PRO-BUSINESS. IS THAT GOING TO HAPPEN? >> I THINK SO. EVERYONE IS VERY EXCITED ABOUT 2025, ESPECIALLY 2026. IF MORE INTEREST RATES FALL,
YOU’LL SEE A LOT OF PEOPLE PUMP MORE MONEY INTO THE MARKETS, AND YOU MIGHT HAVE A WONDERFUL SEASON OF I.P.O.’S. WE’RE STILL WAITING IT OUT RIGHT NOW. IT HASN’T HAPPENED. FINGERS CROSS IT HAD DOES REALLY WELL, AND I THINK THAT WILL OPEN UP THE DOORS FOR MORE PEOPLE TO WANT TO COME OUT TO THE MARKET. CAROLINE: THERE’S BEEN SOME BITTER PILLS TO SWALLOW ON CLARNA. THE VALUATION HAS IMPROVED FROM
RECENT YEARS. WHAT DOES THAT SPEAK TO IN TERMS OF WHERE THE VALUATIONS WILL LIE WHEN WE COME TO THE PUBLIC MARKET? >> IT WILL STILL BE DOWN FROM THE LAST COUPLE OF YEARS. YOU REMEMBER WE HAD ZERO INTEREST RATES, SO WE HAD HAD AN OUTRAGEOUS AMOUNT OF MONEY IN THE MARKET. WITH THE PANDEMIC AND STIMULUS, PEOPLE PUMPED MONEY IN AS IF EVERYTHING WAS GREAT. I THINK WHAT YOU’LL SEE IS ONLY
THE BEST COMPANIES WILL COME OUT AT THE BEGINNING, AND THOSE BEST COMPANIES WILL GET VALUATIONS THAT ARE REFLECTIVE OF BEING UNIQUE AND EXCEPTIONAL. CAROLINE: ARE THOSE BEST COMPANIES HAVE TO BE GENERATIVE A.I. ADJACENT? >> I HOPE NOT, RIGHT? I THINK THERE ARE A LOT OF GREAT COMPANIES THAT ARE WAITING. I’VE BEEN INVOLVED WITH CANVA FOR ALMOST 11 YEARS. THEY DO USE SOME A.I. AS PART OF THEIR PRODUCT
OFFERING, BUT CANVA STARTED OUT AS A TOOL FOR EVERYBODY TO USE TO BE MORE PRODUCTIVE. SOUTHBOUND TALKING ABOUT THE POSSIBILITY OF I.P.O. YOU’LLEE A LOT OF -- YOU’LL SEE A LOT OF COMPANIES COME OUT. CAROLINE: IS IT ALL ABOUT COMING TO THE U.S.?
>> I THINK IF YOU’RE A FOUNDER, NO MATTER WHERE IN THE WORLD YOU ARE, A LOT OF THEM TELL ME IT’S THEIR DREAM TO I.P.O. IN THE U.S., SO YOU’LL SEE THE BEST ONES I.P.O. HERE. THAT’S WHERE ALL THE CAPITAL IS AND WHERE PEOPLE ARE EXCITED ABOUT HAVING THEIR LISTINGS. CAROLINE: PEOPLE ARE EXUBERANT ABOUT M&A PICKING UP. MANY WOULD SAY THE LIMITATIONS ON THE MAGNIFICENT SEVEN TO REALLY MAKE TOO MANY ACQUISITIONS, BUT IS THAT A MORE FURTIVE AREA OF EXIT AT LEAST? >> I HOPE SO, BUT I’M SKEPTICAL. WE HAVE A COUPLE OF ISSUES WITH
M&A. THE FIRST BEING A LOT OF IT WAS BLOCKED. YOU SAW THIS MORNING THAT WE HAD ANOTHER ONE THAT WAS BLOCKED, THE KROEGER ALBERTSON’S ONE. WE MIGHT HAVE A NEW FTC THAT
WILL BE MORE LENIENT IN ALLOWING THEM THROUGH. BUT RIGHT NOW, THE M&A.I. MARKET IS SHUT DOWN, ESPECIALLY FOR FOLKS IN TECH COMPANIES. CAROLINE: WHERE ARE YOU SEEING A LOT OF THE ACTIVITY IN TRYING TO GET INTO DEALS? ARE YOU STILL WRITING THE INITIAL CHECKS? HAVE YOU BEEN TEMPTED BY THE SECONDARY AREAS? >> THERE’S A LOT OF ACTIVITY HAPPENING THERE, BUT MY TASTE HAS ALWAYS BEEN FIRST CHECK IN AND NOT DOING THE SECONDARY. THAT’S WHERE YOU SPOT THESE FOUNDERS WITH AMAZING TALENT. THEY’LL PROBABLY GO TO I.P.O. IF THEY ACHIEVE WHAT THEY WANT.
GOOGLE WENT TO I.P.O. I WAS THERE AS A VERY EARLY EMPLOYEE, AND I WATCHED THAT REOPEN THE PUBLIC MARKETS IN 2004. YOU HAVE GREAT COMPANIES IN THE I.P.O. AND THE MARKET WILL BOOM AGAIN. WHEN SHUTS WERE SHUT DOWN AFTER ENRON AND THE FIRST RECESSION, THE HISTORY DOESN’T QUITE REPEAT ITSELF, BUT BOY, DOES IT RHYME A LOT. CAROLINE: IT DOES RHYME.
DOES THE NEVERENDING WALL OF MONEY GOING TOWARD GENERATIVE A.I. STARTUPS CONTINUE? >> WE’RE ALREADY SEEING IT STOP A LITTLE BIT, RIGHT? IT EBBS AND FLOWS, AND VIDEO MODELS ARE DOING -- THE FIRST STAGE, A LOT OF THEM CAN’T RAISE MONEY ANYMORE. THEY’RE CALLING COMPANIES LIKE CANVA AND SAYING PLEASE ACQUIRE US, WE’RE JUST OUT OF CASH. I THINK YOU’LL SEE THE FIRST
WAVE START SEEING THE BUBBLE POP, AND THEN YOU’LL SEE A SECOND WAVE OF APPLICATIONS, THE ONES THAT ARE CHANGING HOW LEGAL IS DONE, CHANGING HOW INSURANCE IS DONE, CHANGING HOW INSURANCE UNDERWRITING OCCURS. I THINK THOSE WILL HAVE SOME VALUE. WE SAW THIS FROM MOBILE FIRSTHAND. A LOT OF THEM ALL WENT CAN A PUT VERY -- ALL WENT KAPUT VERY, VERY QUICKLY, OR THEY WERE BOUGHT BY GOOGLE AND APPLE.
YOU’LL SEE COMPANIES, WHETHER IT’S GOOGLE, MICROSOFT, OR SORT OF KEEP THE LION’S SHARE, BECAUSE THEY HAVE ACCESS TO ALL THE POWER. CAROLINE: THERE’S A LOT OF MONEY COMING IN, IT HAS TO BE SAID. >> THAT’S TRUE, BUT A LOT OF THE APPLICATIONS, THE APPLICATION COMPANIES FOR GEN A.I. WILL ADD A LOT OF VALUE. CAROLINE: THIS KAPUT MOMENT, THERE ARE A LOT OF ZOMBIES OUT THERE WHO ARE STILL CLINGING TO UNICORN VALUATIONS, BUT NO ONE IS QUITE READY TO RIP UP THE SCRIPT MARK IT DOWN. WHEN IT DID ACTUALLY HAPPEN?
>> WHEN THEY RUN OUT OF CASH. A LOT OF COMPANIES HAD CRAZY UNICORN VALUATIONS, BECAUSE THE MARKET WAS LIMITED. ALL OF A SUDDEN IN ONE FELL SWOOP, AFTER THERE WAS A BIG RECESSION, THE DOT COM BUST HAPPENS. I THINK WE’LL SEE THIS WITH SOME OF THE GEN A.I. COMPANIES. THE MARKET WILL SAY WE DON’T HAVE MONEY FOR YOU, THEY WON’T HAVE A PROFITABLE BUSINESS MODEL, JUST HOW E-COMMERCE COMPANIES NEVER MADE A DIME. THEY LOST MONEY. YOU’LL SEE THE BUSINESS MODEL PLAY OUT, AND THEN ALL OF A SUDDEN WITH NO MORE CASH BEING ABLE TO BE RAISED. CAROLINE:
WHERE ARE YOU TALKING ABOUT THE APPLICATION HERE ON THE FOUNDATIONAL PART? >> I THINK IT’S BETWEEN THE FOUNDATIONAL MODEL. THEY HAVE LOTS OF FUNDING. YOU HAVE THE APPLICATIONS THAT ARE TAKING ADVANTAGE OF SOME OF THE NEW FEATURES AND NEW LAUNCHES HAPPENING. BUT THERE ARE A LOT OF
COMPANIES IN BETWEEN THAT WERE USING SOME OF THE MODELED TO DO BETTER VIDEOS. THAT’S WHERE YOU’LL SEE A LOT OF WRECKAGE. CAROLINE: WESLEY, ALWAYS GREAT TO HAVE YOU ON THE SHOW. FROM FPV VENTURES, LOOKING AHEAD TO 2025. WESLEY USED TO WORK AT GOOGLE, I SHOULD TALK ABOUT GOOGLE FOR A MOMENT, BECAUSE THERE’S A NEW VERSION OF ITS FLAGSHIP A.I. MODEL. GEMINI 2.0 SAYING IT’S TWICE AS FAST AS THE PREVIOUS VERSION.
THE NEW MODEL CAN GENERATE IMAGES AND AUDIO ACROSS LANGUAGES, CAN ASSIST DURING GOOGLE SEARCHES AND CODING PROJECTS. MEANWHILE, ADOBE ALSO ROLLING OUT NEW FEATURES, THIS ONE IS A.I. VIDEO PRODUCT, MUCH MORE SLOWLY THAN OPEN A.I.’S RIVAL SERVICE.
THERE’S BEEN CONCERN IT’S FALLING BEHIND. THE COMPANY ANNOUNCED IT TWO MONTHS AGO AND IT REMAINS IN LIMITED TESTING. MEANWHILE, IT’S MADE AVAILABLE TO A WIDE AUDIENCE JUST THIS WEEK.
WE AWAIT THE NUMBERS AFTER THE BELL. COMING UP, TIKTOK SHOP, IT’S TRYING TO GAIN GROUND AS MUCH AS POSSIBLE AHEAD OF THE POSSIBLE BAN IN THE UNITED STATES. WE’LL DISCUSS. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: WE HAVE A NEW INTRADAY DEFENSIVE COORDINATOR BEING HIT FOR TESLA. KEEP AN EYE ON THE STOCK. WE’RE CURRENTLY UP 2.77%. AT ONE POINT WE WERE GAINING 3.35% TO HIT THE FIRST INTRADAY RECORD SINCE 2021. THE ENTHUSIASM AROUND TESLA, OF COURSE, SINCE THE NEW PRESIDENT-ELECT TRUMP WAS ANNOUNCED IN EARLY NOVEMBER BEING PRICED IN. MEANWHILE, LET’S SHIFT OUR
GEARS TO TIKTOK. ANOTHER ONE TO FOCUS IN ON ON THE TRUMP ADMINISTRATION. IT’S CURRENTLY OFFERING USERS HUNDREDS OF DOLLARS TO SPEND TIME IN THE APP AND INVITE FRIENDS TO JOIN AND PURCHASE PRODUCTS ON TIKTOK SHOP. THIS IS PART OF AN EFFORTS TO EXPAND AS QUICKLY AS POSSIBLE AHEAD OF A POSSIBLE BAN IN THE UNITED STATES. QUITE EXTRAORDINARY SOME OF THE WAYS THEY’RE INTRODUCING USERS.
>> I HAVEN’T SEEN THIS PARTICULAR ONE BEFORE, AND I THINK WHAT’S SO INTERESTING IS THEY’VE ALREADY HAD 170 MILLION AMERICANS USING THE APP. IT IS MOTHER AMERICANS THAN VOTED IN OUR LAST ELECTION. AND THIS SHOWS THAT THEY ARE STILL TRYING TO GET MORE. AS YOU SAID, REALLY MAXIMIZE BEFORE THIS POTENTIAL BAN GOES INTO EFFECT. CAROLINE:
WHAT IS THE IDEA, MORE PEOPLE, MORE OF THE 117 MILLION THAT ALREADY USE IT, WILL BE A BIGGER OUTCRY IF, INDEED, WE ARE GOING TO SEE IT BANNED OR IF THEY CHOOSE NOT TO DIVEST FROM BYTE DANCE? >> ABSOLUTELY. THE THOUGHT IS IT’S BEST TO DO AS MUCH AS THEY CAN AND GRAB AS MUCH AS THEY CAN TO BOTH INCREASE THE VALUE OF THE COMPANY AND ALSO TO MAKE THE APP MORE DEEPLY ENTRENCHED IN THE AMERICANS’ EVERYDAY LIFE AND THE AMERICAN ECONOMY BEFORE THIS POTENTIALLY COMES TO PASS. AND SO WHAT YOU’RE SEEING IN THIS OFFER NOW WHEN FOLKS ARE OPENING UP THE APP IS THAT THEY ARE BEING OFFERED UP TO $350 BASICALLY TO SPEND IN CASH REWARDS ON TIKTOK SHOP, WHICH IS STILL ONE OF THE BIGGEST BETS FOR THE COMPANY AND ONE OF THE AREAS WHERE THEY ARE TRYING TO INVEST THE MOST. CAROLINE: AND THEY’RE EXPANDING IN EUROPE AS WELL, SPAIN AND AIRLAND. BUT HOW WELL IS IT DOING? DO WE HAVE ANY SINCE OF HOW MANY PEOPLE ARE USING THIS IN THE U.S.?
>> WE KNOW THAT TIKTOK SHOP IS WILDLY POPULAR HERE. WE KNOW THAT TIKTOK OR BYTE DANCE, ITS PARENT COMPANY, HAD AIMED TO GET USERS TO SPEND $17.5 BILLION ON THE APP THIS YEAR. WE KNOW THAT THEY JUST HAD TRIPLE THE BLACK FRIDAY SALES THIS YEAR THAN THEY HAD LAST YEAR. WE KNOW THAT THEY’RE DOING VERY WELL. AS FAR AS OUTSIDE THE U.S., IT JUST LAUNCHED YESTERDAY IN
SPAIN, SO IT’S A LITTLE BIT NEWER. BUT I THINK WHAT WE CAN SAY LOOKING AT THE U.S. NUMBERS IS THAT ALL THE REGULATORY SCRUTINY REALLY HASN’T DONE MUCH TO DAMPEN INTEREST IN THE E-COMMERCE ARM OF THE PLATFORM. CAROLINE: TRYING TO GAIN THE U.S. USERS. ALEXANDRA, THANK YOU SO MUCH FROM SAN FRANCISCO. PAID PRODUCT REVIEWS ONLINE, WHICH MERCHANTS CAN USE TO GAIN A COMPETITIVE EDGE, THEY’RE UNDER SCRUTINY. FIRST IT WAS THE GOVERNMENT CUTDOWN.
AND NOW AMAZON ITSELF IS ASKING SHOPPERS TO PROVIDE INFORMATION ABOUT PRODUCT TESTIMONIALS THEY POSTED. BLOOMBERG HAS DONE A DEEP DIVE HERE. WHILE AMAZON IS UNDER PRESSURE TO WORK OUT WHO IT IS, SHOULDN’T BE PAYING SUCH INFLUENCE. >> YEAH, THE INTERESTING THING HERE IS THAT THEY’RE LOOKING BEYOND AMAZON. AMAZON FOR YEARS HAS TRIED TO CLAMP DOWN ON FAKE REVIEWS. THEY’VE LOOKED AT SCAMS WHERE
PEOPLE WERE MAYBE TAKING PAYMENTS ON PAY PAL IN EXCHANGE FOR REVIEWS ON AMAZON. AND WHAT’S HAPPENING NOW IS THEY’RE ACTUALLY REACHING OUT TO PEOPLE WHO POSTED REVIEWS ON AMAZON AND SAYING, HEY, WHAT DINED OF RELATIONSHIP DO YOU HAVE WITH THIS BRAND OR PRODUCT? WHAT KIND OF VIDEOS ARE YOU POSTING ON TIKTOK AND YOUTUBE AND INSTAGRAM? AND THAT’S THE INTERESTING DEVELOPMENT HERE, AMAZON LOOKING BEYOND ITS OWN PLATFORM FOR SIGNS OF THIS KIND OF REVIEW ABUSE. CAROLINE: WHAT IS THE COMEUPPANCE FROM THE ABUSE AND FOR WHOM? >> THAT’S A REALLY GOOD QUESTION. WE KNOW THAT THE FTC IS LOOKING TO CLAMP DOWN ON THIS, AND THEY’RE SAYING THEY CAN GO PURSUE CIVIL PENALTIES. THAT RULE JUST TOOK EFFECT EARLIER THIS YEAR. THAT’S WHERE AMAZON IS STILL UNCLEAR EXACTLY WHERE IT FITS IN. IF THEY TURN A BLIND EYE TO IT,
THAT WOULD BE DIFFICULT FOR THEM. I THINK THEY HAVE TO SHOW THAT THEY HAVE SOME SORT OF PROACTIVE MECHANISMS TO WEED THESE THINGS OUT TO AVOID CULPABILITY. AND THEN MAYBE HELP THE FTC GO TO ANOTHER TARGET, WHICH COULD BE THE ACTUAL REVIEW WRITER AND BRAND THAT’S IN COLLUSION. BUT THEN THE OTHER ASPECT OF
THIS IS JUST THAT IT’S REACHING BEYOND ITS SIGHT. IT’S SENDING A MESSAGE, BE CAREFUL ABOUT THOSE CAMPAIGNS. YOU RUN ON TIKTOK OR YOUTUBE, TRYING TO SELL YOUR AMAZON PRODUCTS, AND MAYBE BRING SOME OF THAT BACK TO AMAZON, WHERE THEY PREFER TO HAVE IT. CAROLINE: YEAH, BECAUSE ADVERTISING HAS BEEN A REALLY STRONG LINE OF GROWTH FOR THEM. AUT>> EXACTLY.
AMAZON HAS NEVER BEEN GOOD AT DISCOVER. IF THEY WANT TO BE DISCOVERED, THEY TRY TO GET DISCOVERED ON TIKTOK AND YOUTUBE, WHERE PEOPLE KIND OF ARE NOODLING AROUND. AMAZON HAS ALWAYS BEEN A PLACE TO SPEAR FISH. SO IS THIS A WAY FOR AMAZON TOE MAYBE SEND A WARNING SIGN AGAINST THOSE KIND OF CAMPAIGNS WITH INFLUENCERS ON OTHER PLATFORMS? CAROLINE: SPENCER SOPER, WE APPRECIATE IT. THANKS SO MUCH. LET’S CHECK IN ON WHAT’S BEEN A KEY MOVE IN THE MARKET TODAY. BROADCOM FROM A POINTS PERSPECTIVE REALLY ADDING TO THE S&P AND THE NASDAQ 100 MORE BROADLY TODAY. IT’S UP 5.6%.
WHY? BECAUSE REPORTS ARE COMING OUT OF THE INFORMATION, WHICH BASICALLY BUILD ON THE REPORTING FROM OUR OWN MARK GERMAN, THAT APPLE IS ALL IN ON BUILDING ITS OWN A.I.-SPECIFIC SERVER CHIPS. WHO ARE THEY USING TO DO THAT WITH? BROADCOM, UP 5.5%. WE SEE BIG MOVES, SOME RECORD HIGHS ACROSS THE BOARD AS WELL.
KEEP A CLOSE EYE ON THE LIKES OF GOOGLE, ALPHABET, AND AMAZON. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." DO NOT FORGET TO CHECK OUT THE PODCAST. FIND IT ON THE
2024-12-14 03:37
