Bitcoin Soars, Hedge Funds Lose Billions on Tesla | Bloomberg Technology
>> FROM THE HEART OF WHERE MONEY, POWER, AND INNOVATION COLLIDE IN SILICON VALLEY AND BOUGHT -- BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." BITCOIN RALLIES PAST 84,000 TO REACH A NEW RECORD HIGH BOOSTED BY THE ELECTION OUTCOME. WE'RE NEXT FOR CRYPTO? ED: TESLA SHORTS, A LOSING BET. CAROLINE: AND WE TALK ABOUT THE FUTURE OF DEFENSE TECH AND AMERICAN DYNAMISM WITH KATHERINE BOYLE. FIRST, A CHECK ON BITCOIN.
THE STORY OF THE DAY, LEAPING FURTHER, ANOTHER 5% HIGHER, ECLIPSING 84,000, NEVER BEEN SEEN IN TERMS OF NUMBERS. IT IS THE SAME REASONING BEHIND IT. SONALI BASAK IS TALKING US THROUGH THE U.S. BEING THE CAPITAL OF THE CRYPTO
PLANET. WHAT DO WE NEED TO SEE IN THE SHORT TERM TO KEEP VINDICATING THIS LEVEL? SONALI: ONE THING IS WATCHING THE FLOW. IT'S BEEN DRAMATIC. STUNNING NOT JUST INTO BITCOIN BUT EVERY STOCK RELATED TO BITCOIN AS WELL.
OVER SEVEN DAYS COINBASE IS UP 75% OVER SEVEN DAYS WITH MICROSTRATEGY UP BOARD NOW TODAY THAN IT WAS THE DAY THE TRUMP VICTORY WAS ANNOUNCED. THAT IS JUST HOW MUCH YOU ARE SEEING EXCITEMENT AROUND THESE STOCKS. WHAT IS ALSO INTERESTING IS YOU HAVEN'T EVEN SEEN THE CRITICAL MOVES BY THE FUTURE TRUMP ADMINISTRATION. FOR EXAMPLE, WHO WOULD BE THE SEC CHAIR? WHAT WITH THE TONE BE? WOULD IT MAKE BITCOIN GO HIGHER? WE ARE LOOKING AT SOLANA, DOES COIN, -- DODGE COIN, WITH GAINS THAT ARE JUST STUNNING. ED: $100 MILLION BACKING THE
PREFERRED CANDIDATE AND THEY GOT THEIR PREFERRED CANDIDATE. THE MARKET THINKS THAT BITCOIN KEEPS GOING RIGHT. 100,000 U.S. DOLLARS PER TOKEN? SONALI: IT DOES. ONE MAN'S EXAMPLE, FRANK SPEISER, GAVE US ESSENTIALLY A TARGET OF 100 THOUSAND DOLLARS FOR THE END OF THE YEAR AND 150 INTO NEXT YEAR, TOWARDS THE END OF NEXT YEAR. A SIGNIFICANT MOVE HIGHER. THE $100,000 TIMEFRAME THAT HE GAVE US WAS WHAT HE HAD GIVEN US BEFORE. SO, THE ADDITIONAL UPSIDE REMAINS A QUESTION, AT LEAST WHAT IT LOOKS LIKE FOR THE NEXT YEAR OR SO. FLOWS HAVE DRIVEN THE STORY
HERE, BUT WHAT ABOUT FUNDAMENTALS? TAKE THE BEGINNING OF THE YEAR, FOR EXAMPLE, WHEN YOU SAW THE NEW APPROVED BITCOIN ETF'S, THERE WAS A HUGE RUN OFF WITH A LEVELING OFF FOR A LONG TIME AND YOU AND I SAT HERE TALKING ABOUT IT. ONE QUESTION THAT I HAVE IS THE ASSETS OUTSIDE BITCOIN. PLACES WHERE THE SEC HAD CRACKED DOWN ON DIFFERENT KINDS OF TOKENS ON THE EXCHANGES. WAS THERE MORE OF A FLOW AND DOES IT TAKE AWAY FROM BITCOIN AT ALL? SOMETHING TO KEEP AN EYE ON. ED: KEEP AN EYE ON BITCOIN. SONALI BASAK, THANK YOU SO MUCH. LOOKING AWAY FROM BITCOIN AND THE EQUITY MARKETS, TECHNOLOGY IS MORE RISK OFF. PARTICULARLY THE CHIPS SECTOR.
JORDAN KLEIN, ANALYST FROM MISSOULA AMERICAS, JOINS US NOW. INTERESTING ANALYSIS ON THE MARKET, BITCOIN GOING GANGBUSTERS. SEMI CONDUCTORS, SOFTER. WHY? JORDAN: I DON'T KNOW IF THERE IS ANY ONE SPECIFIC DATA POINT TODAY PUTTING SEMI CONDUCTORS UNDER PRESSURE. THIS IS A SECTOR THAT WILL BE VOLATILE UNTIL TRUMP TAKES OFFICE IN YOU CAN GET MORE CLARITY AROUND HIS POSITION AROUND TARIFFS, HOW AGGRESSIVE WILL HE BE, WHAT WILL THE IMPACT OF THE GLOBAL TRADE? THEY HAVE HAD A NICE MOVE.
THEY HAVE UNDERPERFORMED SOFTWARE SINCE THE ELECTION BUT IT IS ONE OF THE TOP PERFORMERS YEAR TO DATE LEADING THE WAY. I THINK YOU WILL SEE AN EBB AND FLOW. CLEARLY, THERE IS A LOT OF MOMENTUM AND WHEN IT SEES A SECTOR LIKE CRYPTO AND FINTECH TAKE OFF, SOME PEOPLE WILL WANT TO PLAY INTO THAT. ED: CAN WE GO SUPER MICRO COMPUTER FOR A MOMENT? WHICH WE COMPLETELY IGNORED AS THEY CAME UP WITH THE UPDATE FOR THE MARKET ON THE SAME DAY AS THE ELECTION RESULTS. BUT IT NEEDS FOCUSING ON, IT'S DOWN ANOTHER 11% AND WE ARE BASICALLY WORRIED NOT ONLY ABOUT DISAPPOINTING SALES FORECASTS BUT ULTIMATELY ABOUT ACCOUNTING PROBES, DOJ INVESTIGATION, THE DELAYED 10K EXPOSURE. HOW MUCH ARE YOU FOCUSING ON THESE INDIVIDUAL NAMES AND AS TO WHETHER OR NOT THEY CAN VINDICATE THEIR BUBBLES? JORDAN: WE COVER SMC I, AS DO A LOT OF PEOPLE WHO FOLLOW IT AS A BIG SUPPLIER OF THE AI SERVERS AND BLACKWELL RACK SYSTEMS THAT ARE IN SUCH HIGH DEMAND.
THEY ARE A PART OF THE ECOSYSTEM FOR AI THIS IS A HUGE QUESTION MARK, A BIG DARK CLOUD OVER THAT COMPANY AND OF STOCK, OBVIOUSLY. PEOPLE ARE LOOKING TO FIGURE OUT WHAT IT COULD MEAN FOR CUSTOMERS WHO ARE WAITING FOR THESE SYSTEMS AND WHAT IT COULD MEAN FOR OTHER COMPETITORS WHO MIGHT BENEFIT IF, YOU KNOW, ORDERS MOVE FROM SUPERMICRO TO PLAYERS LIKE DELL OR HEWLETT-PACKARD. I DON'T NECESSARILY THINK IT CHANGES THE ENTIRE DYNAMIC OF AI INVESTMENT WITH DEMAND EXCEEDING SUPPLY. I THINK THAT WILL REMAIN INTACT INTO NEXT YEAR.
IT DOES SHOW YOU THE RISKS ASSOCIATED WITH THESE NAMES, WHAT GOES UP CAN COME DOWN AND YOU NEVER KNOW WHEN YOU WILL BE HIT WITH THESE HEADLINES OUT OF THE BLUE, TO BE HONEST. CAROLINE: COMP -- ED:, AND TO THE INDUSTRY AT LARGE IS CHINA. WHEN IT COMES TO PRESIDENT-ELECT TRUMP, WE HAVE A FIRMER UNDERSTANDING OF THAT TARIFF POLICY.
WHEN YOU THINK ABOUT THE END MARKET THAT IS CHINA, DO YOU HAVE A CLEAR SENSE OF WHETHER THE PRESIDENT-ELECT WILL OR WILL NOT ALLOW AMERICA'S BIGGEST TECHNOLOGY COMPANIES TO DO MORE BUSINESS IN CHINA GOING FORWARD? JORDAN: YOU KNOW, I THINK THAT IS A PART OF THE UNCERTAINTY. I DON'T THINK HE'S GOING TO RESTRICT ACROSS-THE-BOARD U.S. COMPANIES DEALING IN CHINA. BUT HE DEFINITELY WANTS TO GAIN MORE LEVERAGE OVER, YOU KNOW, THE TRADE IMBALANCE AND WANTS TO BRING AS MUCH INVESTMENT TO THE UNITED STATES AS POSSIBLE.
PARTICULARLY COMPANIES THAT GO OVERSEAS FOR THEIR PRODUCTION OR THEIR PURCHASING. THAT IS WHY YOU HAVE SEEN THINGS LIKE THE CHIP DECK STIMULATE U.S. INVESTMENT. SO AGAIN, I THINK HE'S GOING TO DO ANYTHING THAT HE CAN TO INCENTIVIZE COMPANIES, WHETHER THEY ARE U.S.-BASED OR OVERSEAS TO LOOK TO THE UNITED STATES FIRST, YOU KNOW, AS OPPOSED TO CHINA. AND I ALREADY THINK THAT WAS GOING ON, RIGHT, BEFORE TRUMP WAS ELECTED. THAT WAS A PART OF THE BIDEN ADMINISTRATION FOCUS WITH THE CHIPS ACT MONEY. BUT THEN IT ONLY ACCELERATES
AND THE QUESTION BECOMES -- WHAT IS THE ACTUAL IMPLICATION IF HE PUTS THESE LARGE TARIFFS ON? IT WILL BE SOMETHING WHERE WE HAVE TO WAIT AND SEE. ED: I'M A CREATURE OF HABIT, I WAKE UP AND READ THE SAME THING EVERY DAY, THE KLEIN QUICK TECH BITES. TODAY YOU ARE TALKING A LOT ABOUT CYBER STOCKS. WHAT'S YOUR FOCUS THERE? JORDAN: I WOULD WATCH THIS AREA CLOSELY IF I WAS AN INVESTOR LOOKING TO MAKE MONEY IN THE COMING YEAR. THERE'S A LOT OF RISK GLOBALLY FROM ATTACKS, BREACHES AND SO FORTH. WE DID A SURVEY OF OVER 100
U.S.-BASED I.T. MANAGERS AND ASK THEM ABOUT THEIR PROPENSITY TO INVEST AND SPEND IN THE SECURITY SECTOR AND HOW AI MIGHT ACTUALLY IMPACT SPENDING. THE RESULTS WERE QUITE FAVORABLE. IT'S A LONG REPORT, BUT THE SUMMARY IS THAT COMPANIES ARE LOOKING TO SPEND MORE ON SECURITY, NOT LESS.
AI IS GOING TO DRIVE MORE INVESTMENT. SOME OF THE COMPANIES THAT WERE TALKED ABOUT THAT LOOKED TO BE THE CLEAR BENEFICIARIES INCLUDED NOT ONLY MICROSOFT BUT CROWDSTRIKE, PALO ALTO, AND A COMPANY CALLED CYBER ARC. YOU WANT TO OVERWEIGHT THIS GROUP. YOU WILL GET SOME EARNINGS THIS WEEK THAT COULD MAKE IT VOLATILE, BUT A YEAR FROM NOW A LOT OF THESE STOCKS ARE HIGHER.
CAROLINE: WHAT ARE WE NOT TALKING ABOUT THAT YOUR CLIENTS ARE TALKING ABOUT? JORDAN: ONE GROUP THAT WILL REMAIN IN FOCUS THAT HAS DONE WELL BUT GENERALLY THE MORE AVERAGE INVESTOR IS UNAWARE OF IS OPTICAL. A LOT OF THE CLOUD DATA CENTERS, IN ORDER TO BE ABLE TO HANDLE THE DATA AND HIGHER SPEEDS, THEY NEED TO BASICALLY UPGRADE ALL THE CONNECTION POINTS INSIDE OF THE DATA CENTER AND FROM DATA CENTER TO DATA CENTER. OPTICAL IS THE FASTEST AND MOST EFFICIENT WAY TO DO THAT. YOU HAVE SEEN SOME COMPANIES, IF YOU PULL UP THE CHARTS ON COHERENT, MOMENTUM, OTHER COMPANIES LIKE STERILE LABS AND CREDO, THESE ARE COMPANIES -- EVEN BROADCOM, WHICH A LOT OF PEOPLE ALREADY KNOW, THEY WILL ALL BENEFIT FROM THE SHIFT IN CAPEX SPEND IN THE DATA CENTER TO BROADEN OUT INTO CONNECTING ALL OF THESE HIGH-SPEED GPU'S TOGETHER SO THAT THEY CAN BASICALLY PRODUCE THE OUTPUT THAT THESE CLOUD COMPANIES ARE SEEKING WITH THESE AI ENABLED APPLICATIONS. THAT AREA WILL REMAIN IN FOCUS -- IN FOCUS AND I CONTINUE TO REMAIN OPTIMISTIC ON. CAROLINE: JORDAN, THANK YOU.
COMING UP, TESLA SHORTS PROVING TO BE A LOSING BET. MORE ON THAT, NEXT. ED: SINCE THE ELECTION OF DONALD TRUMP, HEDGE FUNDS ARE CLINGING ON TO BETS AGAINST TESLA AND THEY HAVE LOST BILLIONS. FEELING THE FALLOUT OF THE SPECIAL RELATIONSHIP BETWEEN THE PRESIDENT-ELECT AND ELON MUSK. HEDGE FUNDS THAT HAD SHORT POSITIONS AGAINST TESLA BETWEEN ELECTION DAY AND FRIDAY'S CLOSE TOOK THE ON PAPER HIT OF $5.2 BILLION. LET'S BRING IN DAVID WELSH IN DETROIT.
I MEAN, THIS HAS BEEN THE CALCULUS FOR SOME TIME, BUT THE 5.2 BILLION DOLLAR LOSS IS QUITE SOMETHING. DAVID: PEOPLE HAVE LOST MONEY TRYING TO BET AGAINST ELON MUSK FOR A LONG TIME BUT IN THIS CASE THE BET WAS THAT TURNING TESLA INTO AN AI COMPANY EITHER WOULDN'T HAPPEN OR WOULDN'T HAPPEN ON TIME, SO THERE WOULD BE A LOT OF BAD OR DELAYED NEWS ON TESLA. IN EFFECT NOW YOU HAVE THIS TIGHT RELATIONSHIP WITH DONALD TRUMP, MEANING THAT YOU WILL SEE EV POLICIES CRAFTED TO HELP TESLA AND MORE IMPORTANTLY SOME SORT OF PERMISSIVE FEDERAL FRAMEWORK FOR AUTONOMOUS VEHICLES THAT WILL HELP THE TESLA PLANS FOR ROBOTAXIS. INVESTORS LIKE THAT, THEY ARE WILLING TO BET ON THAT AND OF THE SHORTS GOT HIT HARD. CAROLINE:
IS ANYONE STILL CLINGING ON? I KNOW THAT BLOOMBERG SPOKE TO CLARE MY CANDOR, WHO HAD A LITTLE BIT OF SKIN IN THE GAME BETTING AGAINST TESLA, BUT WHAT IS THE PERCENTAGE FLOW OF SHORTAGE NOW? CAROLINE: -- DAVID: I THINK IT'S PRETTY SMALL. I FORGET WHAT IT WAS IN THE STORY, BUT A LOT OF PEOPLE HAVE HAD TO BUY TO BASICALLY COVER THEIR SHORT POSITIONS. SOME IN THERE ARE STILL THINKING THAT TRUMP WILL GOT SOME OF THESE IRA CREDITS AND THINGS THAT HELP EV'S CELL.
TRUMP HAD A LAWSUIT AGAINST THE STATE OF CALIFORNIA BEFORE. IF THAT HAPPENS AGAIN, IF IT IS SUCCESSFUL AND YOU GET RID OF SOME OF THESE CLEAN-AIR CREDITS, IF THAT SHRINKS BECAUSE OF THIS, IT COULD WORK AGAINST THE COMPANY. BUT AGAIN YOU HAVE GOT ELON MUSK SITTING NEXT TO DONALD TRUMP, TALKING TO HIM ABOUT POLICIES. FOR THESE KINDS OF THINGS, IT'S HARD TO IMAGINE THAT HE IS GOING TO SUGGEST THAT DONALD TRUMP DO ANYTHING THAT'S GOING TO HURT CLEAN-AIR CREDITS OR IRA CREDITS OR THINGS THAT WILL HELP HIS COMPANY. CAROLINE: 17% NET SHORT, ONLY 8% NET LONG. REFLECTING HOW LONG IT HAS RUN OUT. DAVID WELSH, WE REALLY
APPRECIATE IT. THANK YOU SO MUCH. SWITCHING GEARS TO TALK ABOUT CHINA, SINGLES' DAY KICKS OFF OFFICIALLY TODAY WITH MANY RETAILERS SLASHING PRICES AND OFFERING PROMOTIONS BUT FOR MANY THIS HAS BEEN A WEEKS LONG AFFAIR. THAT IS AS CHINA GRAPPLES WITH WEAK ECONOMIC DATA. JACOB COOK IS WITH US. IT'S BEEN WEEKS IN THE MAKING. WHAT ABOUT TODAY, JACOB? HOW MUCH SPENDING IS DONE ON 11/11? JACOB: 25% TO 30% IS DONE ON THE DAY. THE FESTIVAL HAS BEEN GETTING
LONGER AND LONGER EVERY YEAR. OVERALL, PRETTY OPTIMISTIC. WE CLOSED OUT 10 MINUTES AGO, 12TH IN CHINA, OVERALL PREDICTING STRONGER GROWTH OVER THE -- FROM THIS YEAR TO LAST YEAR, SO IT IS LOOKING OPTIMISTIC SO FAR. WHAT ARE THEY -- CAROLINE: WHAT ARE THEY BUYING? JACOB: A LOT OF DIFFERENT THINGS THIS YEAR. THERE'S A LOT ABOUT PETS AND OUTDOOR CONSUMPTION. PERSONAL CARE, COSMETICS, THESE TYPES OF THINGS. WE DEFINITELY SUMMARIZE THIS TREND TO BE MORE AROUND LULULEMON AND LESS ON LOUIS VUITTON, THE GENERAL EMERGENCE OF THAT NEW CONSUMER COMING OUT OF CHINA.
FOR OUR GLOBAL AUDIENCE, A LOT OF PEOPLE WATCHING THIS WILL NOT HAVE EXPERIENCED, PARTICULARLY WITH ALIBABA, BUT ALSO THAT CONSUMER FACING BUSINESS. WHAT'S THAT EXPERIENCE LIKE IN CHINA? IS IT AKIN TO THE AMAZON PRIME DAY IN THE UNITED STATES? HOW DO PEOPLE RUSH TO DO THEIR SHOPPING? JACOB: TWO THINGS. ONE, PEOPLE HAVE HAD THEIR EYE ON CERTAIN ITEMS FOR THE YEAR, LIKE GOLF CLUBS OR SPORTING EQUIPMENT. THEN THERE ARE THE PEOPLE THAT STOCK UP. PETS HAVE A LOT TO DO WITH THAT, PEOPLE STOCKING UP FOR MONTHS IN ADVANCE. YOU WILL SEE BASICALLY EVERY
ADVERTISEMENT ON ELEVATORS AND TELEVISIONS PROMOTING THE SHOPPING FESTIVAL. COMBINE THIS WITH THE SIX/18 SHOPPING FESTIVAL, A LOT OF BRANDS ARE EXPECTED TO DO ABOUT 15% OF THEIR SALES DURING THIS ONLINE TIME, SO IT IS SUBSTANTIAL. CAROLINE: YOU HELP GLOBAL BRANDS MAKE INROADS INTO CHINA, SOUTH KOREA, WHAT ARE THEY TELLING YOU ABOUT NERVOUSNESS OF A CONTINUED FOCUS ON CHINA AT THIS MOMENT GIVEN THE NEW ADMINISTRATION COMING IN THE U.S.? JACOB: CERTAINLY, OUR BRANDS HAVE BEEN ASKING FOR DIVERSIFICATION THROUGHOUT THE REGION.
WE OPERATE ALL THROUGHOUT ASIA. THAT'S KOREA, SOUTHEAST ASIA. WE ARE THOUGH TAKING A LOT OF LEARNING FROM HERE. IF YOU LOOK AT THE DOMINANT PLATFORMS, A LOT OF THEM ARE EITHER OWNED BY CHINESE, HEAVILY INVESTED BY CHINESE, OR HAVE MAJOR OPERATIONS COMING OUT OF CHINA. AS FOR DIVERSIFYING, CHINA IS STILL TWO THIRDS OF ALL OF THAT WHEN YOU ADD UP THE REGION. WE SEE A LOT OF THE LEARNING
COMING OUT OF CHINA APPLIED IN THE LIVE-STREAMING INFLUENCER MARKET AND THE KINDS OF THINGS THAT ARE BECOMING MORE AND MORE POPULAR WHEN YOU SEE THE RISE OF TIKTOK SALES THROUGHOUT ASIA. ED: JACOB COOK, THANK YOU VERY MUCH. COMING UP, AI SALES START UPS GETTING AN IN BASEMENT -- BOOST. TESLA IS TRADING MORE THAN 10% ON THE SESSION HIGH, ITS HIGHEST LEVEL SINCE APRIL 5 OF 2000 22, UP FOR A FIFTH STRAIGHT DAY AFTER THE ELECTION, MATCHING THE RUN OF GAINS IT HAD IN SEPTEMBER. A LOT OF MOMENTUM, THERE.
NOT FOR THE SHORTS. THIS IS BLOOMBERG. ED: ARTIFICIAL INTELLIGENT POWERED FAILED START UP A 11 X HAS RAISED $50 MILLION IN A NEW FUNDING ROUND WITH 76 MILLION AND A VALUATION OF 320 MILLION. FOR MORE, THE 11 X CEO JOINS US NOW. INTERESTING STORY. THIS IS A STARTUP STARTED IN LONDON AND YOU JUST MOVED TO THE BAY AREA, SAN FRANCISCO WITH 50 MILLION DOLLARS. WHAT’'S THE NEXT PHASE? HASSAN: ABSOLUTELY.
FIRST OF ALL, GREAT TO SEE YOU. YOU ARE EXACTLY RIGHT. WE RECENTLY MOVED FROM LONDON TO SAN FRANCISCO, WITH QUITE A BIG PORTION OF OUR TEAM COMING HERE. THERE IS A TREMENDOUS AMOUNT OF EXCITEMENT WE ARE PUSHING TOWARDS AND WE ARE HAPPY TO TAKE YOU THROUGH IT. ED: WHAT IS AN ARTIFICIAL INTELLIGENT POWERED SALES STARTUP? HASSAN: WE ARE AND AUTOMATION COMPANY THAT BUILDS DIGITAL WORKERS.
THINK OF DIGITAL WORKERS AS AI EMPLOYEES WITH NAMES AND FACES, JOB CATEGORIES. COMPANIES CAN HIRE THEM TO EXECUTE TASKS. REALLY, IT'S ABOUT THE WORK OUTCOMES. OUR DIGITAL WORKERS FOCUS ON
REVENUE TEAMS OR GO TO MARKET TEAMS MORE BROADLY. ULTIMATELY, THE CORE MODEL IS DIGITAL WORKERS INSTEAD OF TRADITIONAL CAROLINE: SOFTWARE. IT'S A COMPETITIVE -- TRADITIONAL SOFTWARE. CAROLINE: IT'S A COMPETITIVE SPACE. HOW DO YOU PARTNER WITH OTHERS OR TAKE THEM ON? HASSAN: TRADITIONAL SOFTWARE WAS BUILT TO MAKE EMPLOYEES MORE PRODUCTIVE, MORE EFFICIENT, MORE COLLABORATIVE. WITH AI AGENTS, THE SCOPE FOR WHAT YOU CAN AUTOMATE AND HOW YOU CAN AUTOMATE IS DIFFERENT. YOU CAN TAKE ENTIRE PROCESSES, WORKFLOWS AND HAVE AGENTS EXECUTE THEM.
WE BELIEVE THAT THIS WILL CREATE A HUGE SHIFT IN HOW PEOPLE THINK ABOUT SOFTWARE. THE WAY THAT WE THINK ABOUT IT INTERNALLY, LIKE 25 YEARS AGO, SALESFORCE, IT REALLY INNOVATED ON THE CLOUD-BASED SOFTWARE MODEL AND WE THINK THAT WITH AGENTS, THERE IS THE BEGINNING OF A BIG SHIFT IN HOW CUSTOMERS AND ENTERPRISES AROUND THE WORLD THINK OF THE VALUE OF UTILIZING AGENT THAT AND THAT'S HOW WE THINK OF THIS. CAROLINE: SALESFORCE IS ALL IN ON AGENTS. HOW DO YOU MUSCLE IN AND TAKE AND RUN WITH THAT? WE SEE THE COMPANIES YOU ALREADY HAVE HIS CLIENTS.
HASSAN: CUSTOMERS ARE SMART AND THEY REALIZE THAT COMPANIES ARE AI NATIVE. SOME ARE BEST SUITED TO TRULY CAPTURE THE BENEFITS OF THE TECHNOLOGY ENABLED BY THE AGENTS AND THE WAY TO THINK ABOUT IT, JUST LIKE OUT HISTORICALLY, YOU KNOW, WHEN THE MOVE TO CLOUD HAPPENED, IT ENABLED A PLETHORA OF OPPORTUNITIES IN COMPANIES NATIVE TO THE CYCLE AND HOW 11X IS OPERATING. ULTIMATELY THE WAY THAT WE BUILD TECHNOLOGY IS LEADING TO A MUCH BIGGER IMPACT FOR OUR CUSTOMERS THAN WHAT YOU WOULD GET IN COPILOT OR INCREMENTAL SOFTWARE.
CAROLINE: GOING -- ED: WHY MOVE FROM THE UNITED KINGDOM TO THE WEST COAST? HASSAN: WE BELIEVE THERE'S NO BETTER PLACE IN THE WORLD TO SCALE A COMPANY THEN SAN FRANCISCO. SO MANY OF OUR CUSTOMERS ARE HERE. THE DEPTH OF TALENT. ULTIMATELY, IT'S AN ENVIRONMENTALLY -- ENVIRONMENT WHERE WE CAN SCALE TO THE HUGE MARKET OPPORTUNITY THAT WE SEE AHEAD OF US. CAROLINE: OUR NEXT AI CEO, COME BACK, WE APPRECIATE IT. COMING UP WE TALK AMERICAN DYNAMISM WITH KATHERINE BOYLE AND WHAT SHE HAS TO SAY ABOUT OUTER SPACE IN A NEW ADMINISTRATION. THIS IS "BLOOMBERG TECHNOLOGY." ♪ >> MY REACTION ON THE DEFENSE SIDE, THE BUSINESS SIDE, IT'S GREAT TO HAVE SOMEONE INBOUND WHO IS DEEPLY, I GUESS, DEEPLY ALIGNED WITH THE IDEA THAT WE NEED TO SPEND LESS ON DEFENSE WHILE GETTING MORE, DOING A BETTER JOB OF PROCURING THE DEFENSE TOOLS THAT PROJECT -- PROTECT OUR COUNTRY INTO THE NITTY-GRITTY OF OUR AIRCRAFT DESIGN AND THE PROCUREMENT OF AIR FORCE ONE. TO SEE THAT LEVEL OF
INVOLVEMENT FROM A PRESIDENT IS RARE AND AN INDICATOR OF HIS PRIORITIES. ED: THAT WAS FROM THE SHOW LAST THURSDAY WHERE LUCKEY ALSO TOLD US THAT HE IS IN TOUCH WITH THE TRANSITION TEAM ON KEY POSTS LIKE THE NEXT SECRETARY OF DEFENSE. OUR NEXT VESTED -- GUEST IS KATERINE BOYLE, GENERAL PARTNER AT ANDREASEN HOROWITZ, COFOUNDER OF THE AMERICAN DYNAMISM PRACTICE, WHICH INVESTS IN COMPANIES SUPPORTING NATIONAL INTEREST ACROSS AEROSPACE, DEFENSE, AND CRITICAL INFRASTRUCTURE. THIS IS THE FIRST OPPORTUNITY WE'VE HAD TO TALK SINCE THE OUTCOME OF THE ELECTION. PART OF WHAT HE WAS TALKING ABOUT THERE I GUESS WAS EVIDENCE THAT PRESIDENT-ELECT TRUMP WILL SPEND IN THE AREAS YOU ARE FOCUSED ON, DEFENSE TECHNOLOGY. BEYOND THAT, WHAT ELSE CAN YOU GIVE OUR AUDIENCE THAT CONVINCES YOU THAT PRESIDENT-ELECT TRUMP WAS THE RIGHT KENNEDY -- CANDIDATE FOR THE AMERICAN DYNAMISM MOVEMENT? KATERINE: THE FOCUS OF THIS ADMINISTRATION WILL BE ON PRODUCTION.
PRODUCTION, PRODUCTION, PRODUCTION. INVEST IN DEFENSE. LET'S MAKE SURE THAT THE TECHNOLOGY NEEDED FOR THE BATTLES OF THE 21ST CENTURY ARE PROCURED AS QUICKLY AS POSSIBLE. AS PALMER SAID, A MESSAGE THAT CAN BE LOST INSIDE OF THE DOD AND OUTSIDE OF IT, WE NEED TO FOCUS ON DOING MORE WITH LESS. TECHNOLOGY IS BETTER FOR THE AMERICAN TAXPAYER.
BUILDING PRODUCTS FOR THE NEXT GENERATION OF WAR FIGHTER, IT'S CHEAPER THAN THE LARGE EXQUISITE SYSTEMS THAT HAVE DOMINATED THE DEPARTMENT OF DEFENSE FOR MANY DECADES AND I THINK IT WILL BE A HUGE FOCUS OF THE ADMINISTRATION GOING FORWARD. ED: DOING MORE WITH LESS, DEPARTMENT OF GOVERNMENT EFFICIENCY, ELON MUSK, WHAT DO YOU THINK THAT ELON MUSK WILL DO, ENCOURAGE, OR GUIDE THE PRESIDENT-ELECT TO DO IF HE IS TO HAVE SOME SORT OF ROLE IN THIS ADMINISTRATION? KATERINE: I DON'T KNOW MUCH ABOUT THAT DEPARTMENT. THERE ARE A LOT OF DETAILS ON THAT THAT REMAIN TO BE SEEN, BUT THE THING MOST IMPORTANT ABOUT THOSE AROUND THE ADMINISTRATION AND THE ADMINISTRATION THEMSELVES IS THAT THEY VERY MUCH UNDERSTAND THE IMPORTANCE OF AMERICAN DYNAMISM AND UNDERSTAND HOW TECH MAKES THINGS MORE EFFICIENT, NOT LESS EFFICIENT, SAVING DOLLARS ACROSS A RANGE OF INDUSTRIES. THAT WILL BE PARAMOUNT.
SILICON VALLEY UNDERSTANDS COMPANY BUILDING, UNDERSTANDS HOW IMPORTANT JOB CREATION IS TO THE AMERICAN ECONOMY. YOU ALSO HAVE THAT IN JD VANCE. THE STORY THAT WASN'T TOLD THAT MUCH ON THE CAMPAIGN TRAIL IS THAT HE LEFT SAN FRANCISCO AND MOVED TO OHIO AND STARTED INVESTING IN COMPANIES IN THE MIDWEST WITH HIS VENTURE FIRM BECAUSE HE BELIEVED INVESTING DIRECTLY IN MANUFACTURING AND COMPANIES BASED AROUND THE COUNTRY IS THE FRONT OF AMERICAN DYNAMISM. A LARGE PART OF OUR AMERICAN DYNAMISM IN AMERICA, TECHNOLOGY BEING GOOD FOR ALL AMERICANS IN ALL OF SOCIETY, THAT WILL BE THE INNOVATION MESSAGE OF THE ADMINISTRATION BECAUSE THEY HAVE FIRST-HAND EXPERIENCE WITH BUILDING COMPANIES. CAROLINE:
YOU INVEST IT LONG TIME -- ALONGSIDE JD VANCE. ONE OF HIS PRESENCE IN WASHINGTON, WHAT DO YOU THINK HE WILL EVOLVE? KATERINE: THERE'S AN UNDERSTANDING THAT IT IS IMPORTANT TO INVEST IN THE THING THAT SENATOR VANCE HAS BEEN VERY FOCUSED ON THROUGHOUT HIS CAREER IS MANUFACTURING. I WANT TO GO BACK TO SAYING THAT PRODUCTION IS SUCH AN IMPORTANT PART OF THE PHILOSOPHY OF THIS ADMINISTRATION AND WHERE THE DOD IS GOING, INVESTING IN COMPANIES BUILDING AND SUPPORTING IT, CAN'T BE REMOVED FROM MANUFACTURING. THE FUTURE OF MANUFACTURING IN THE COMPANY -- COUNTRY IS RELIANT ON THOSE BUILDING FOR DEFENSE, AEROSPACE, BRINGING NEXT-GENERATION MANUFACTURING CAPABILITIES INSIDE OF THOSE IMPORTANT TO THE ECONOMY AND THAT IS GOING TO BE A KEY BELIEF OF THIS ADMINISTRATION, SOMETHING THEY TALK ABOUT PUBLICLY BEFORE AND IT WILL SPEAK VOLUMES TO THE COMPANIES COMING UP TODAY THAT WANT TO BUILD AS QUICKLY AS POSSIBLE FOR NEXT GENERATION CAPABILITIES. CAROLINE: MITCH MCCONNELL ECHOED THIS, SAYING IT'S CHEAPER TO PREVENT MORE THAN TO HAVE ONE. KATERINE, WHAT ABOUT OUTSIDE OF AMERICA INVESTING IN AMERICAN START UPS LARGER DEFENSE COMPANIES? WE HAVE ALREADY HEARD FROM TAIWAN DISCUSSING HOW THEY WILL BE UPPING DEFENSE SPENDING AND EUROPE TRIED TO FRONT RUN THAT, TOO? KATERINE: THE UNDERSTANDING IS THAT THE TURNS MATTERS AND IF YOU DON'T HAVE STRONG BASES IN YOUR COUNTRY, IT'S A WEAK POINT FOR NATIONAL SECURITY AND I AGREE WITH THAT SENTIMENT, THE BEST WAY TO STOP WARS IS TO INVEST IN THE MANUFACTURING CAPABILITIES AND COUNTRY. JUST AS YOU ARE SEEING A FOCUS
ON THE AMERICAN DEFENSE INDUSTRIAL BASE, WHICH DEFINITELY NEEDS INJECTIONS OF PUBLIC AND PRIVATE CAPITAL, YOU ARE SEEING THAT ACROSS OTHER COUNTRIES WHO ARE SAYING WE ARE GOING TO START INVESTING IN OUR DEFENSE INDUSTRIAL BASE AS WELL AND THERE'S A LOT THAT THEY CAN LEARN FROM AMERICAN COMPANIES AND FROM THE START UP ECOSYSTEM AND WHAT HAS HAPPENED WITH AMERICAN DYNAMISM OVER THE LAST SEVERAL YEARS IN TERMS OF BRINGING AUTONOMY AND MAKING SURE THAT YOU ARE NOT INVESTING IN LARGE, EXQUISITE SYSTEMS THAT ARE EXPENSIVE AND TIME-CONSUMING, BUT INVESTING IN DRONES, AUTONOMY, UNMANNED VESSELS THEY CAN BE BUILT QUICKLY AND CHEAPLY AND BE PUT IN THE HANDS OF A WAR FIGHTER IF NEED BE. ED: I READ THIS MORNING ABOUT YOUR COLLEAGUES IN THE INDUSTRY WHO SUPPORTED HARRIS DOING SOME SOUL SEARCHING, BUT ALSO CONSIDERING HOW TRUMP TO POINT OUT WILL WORK FOR THEM, FOR THEIR PORTFOLIO COMPANIES. WOULD YOU BE ABLE TO TALK A BIT ABOUT THE CONVERSATIONS YOU HAVE HAD WITH YOUR COLLEAGUES AND COMPETITORS, EVEN, IN THE WORLD OF VENTURE CAPITAL? THE CASE THAT YOU WOULD MAKE THAT THIS WILL BE A GOOD FOUR YEARS? KATERINE: AMERICAN DYNAMISM IS ONE OF THE FEW CATEGORIES OF INNOVATION WHERE REPUBLICANS AND DEMOCRATS AGREE WHOLEHEARTEDLY. WE NEED TO INVEST IN THE DEFENSE INDUSTRIAL BASE AND MAKE SURE THAT WE ARE RE-SHORING AND RESTORING THAT IN AMERICA.
THESE ARE NOT CONTROVERSIAL ISSUES. REPUBLICANS AND DEMOCRATS COME TOGETHER OFTEN ON THEM. THIS IS SOMETHING OFTEN THAT OUR COLLEAGUES WHO SUPPORTED THE HARRIS ADMINISTRATION, THERE IS DEFINITELY A VIEW THAT THIS IS A CATEGORY OF INNOVATION THAT WILL TOUCH ALL AMERICANS, SOMETHING EVERYONE CAN AGREE IS IMPORTANT AND WE NEED TO INVEST IN THESE CAPABILITIES GOING FORWARD. ED: HOW DOES A VC FOCUSED ON AMERICAN DYNAMISM NEED TO INVEST NOW? WHAT KIND OF COMPANIES? KATERINE: I DON'T KNOW THAT THE STRATEGY CHANGES. ASH CARTER HAS BEEN POUNDING
THE DRUM THAT THE DEPARTMENT OF DEFENSE NEEDS TO CHANGE AND EVERY ADMINISTRATION HAS THIS UNDERSTANDING THAT THE DEFENSE DEPARTMENT NEEDS TO MODERNIZE, AEROSPACE NEEDS TO MODERNIZE. IN MANY WAYS THERE WILL BE A CONTINUATION OF INVESTING IN COMPANIES THAT ARE FANTASTIC FOR THE NATIONAL INTEREST. COMPANIES LIKE AEROSPACE, DEFENSE, NUCLEAR POTENTIALLY, COMPANIES IMPORTANT FOR ALL AMERICANS. WE WILL CONTINUE TO SEE MORE AND MORE INVESTMENT IN THESE CATEGORIES IN PARTICULAR. CAROLINE: IT IS VETERANS DAY AND YOU HAVE INVESTED IN MANY COMPANIES FOUNDED BY VETERANS. SPACEX, DO YOU WORRY ABOUT IF THERE IS A LONGER-TERM ROLE FOR HIM WITHIN THE CABINET OR AS A WHISPERER TO THE WHITE HOUSE? DOES THAT WORRY YOU ABOUT THE LEADERSHIP OF THE COMPANIES HE CURRENTLY HELMS? KATERINE: NO, HE IS SUPERHUMAN IN TERMS OF THE NUMBER OF COMPANIES HE HAS SUPPORTED AND BUILT.
THE MOST EXTRAORDINARY FOUNDER OF NOT ONLY OUR ERA, BUT LOOKING BACK IN HISTORY WE WILL REMEMBER HIS NAME AND I AM VERY EXCITED THAT HE IS TAKING AN INTEREST IN POLITICS. THAT HE IS THINKING ABOUT HOW TO MAKE THE GOVERNMENT MORE EFFICIENT. I THINK A LOT OF PEOPLE WOULD AGREE WITH THAT SENTIMENT, HE'S ONE OF THE MOST EXTRAORDINARY BUILDERS AND MOST EFFICIENT PEOPLE WITH HIS TIME AND WILL HAVE AN EXTRA AND THEIR IMPACT ON THE AMERICAN GOVERNMENT. CAROLINE: KATERINE BOYLE, APPRECIATE YOU JOINING US. TECHNOLOGY THAT SEEMED LIKE SCIENCE FICTION, RAPIDLY BECOMING REALITY.
IN A NEW FOUR-PART SERIES, EMILY CHANG MEETS SOME OF THE MOST ADVANCED ROBOTS IN THE WORLD. HERE'S A SNEAK PEEK. EMILY: IS THE HOLLYWOOD IDEA OF KILLER ROBOTS NOT FAR-FETCHED? >> IT'S COMING VERY SOON, IN THE NEXT FEW YEARS. ALL OF THE GOVERNMENTS THAT SELL ARMS, LIKE THE U.S. AND RUSSIA, BRITAIN, ISRAEL, ALL OF THOSE GOVERNMENTS REFUSED TO REGULATE MILITARY USES OF AI.
THERE'S ALL OF THESE LIMITATIONS ON AI BEING TRANSPARENT, THIS AND THAT, SHOULDN'T DISCRIMINATE , BUT THERE'S A LITTLE CLAUSE IN THERE THAT SAYS THAT NONE OF THIS APPLIES TO MILITARY USES OF AI. THEY DON'T LIKE REGULATION THEMSELVES. ALL OF THE BIG ARMAMENTS MANUFACTURERS ARE VERY KEEN TO MAKE KILLER ROBOTS. IF YOU SAY LOOK AT THE ASIMOV RULES OF ROBOTICS, THE FIRST LAW SHOULD BE DO NOT HARM PEOPLE, THAT'S THE WHOLE POINT OF A KILLER ROBOT. THAT WON'T BE BUILT INTO A KILLER ROBOT. CAROLINE: THE FIRST EPISODE -- ED: THAT FIRST EPISODE AIRS TONIGHT AT 10 P.M. CAROLINE:
QUICK CHECK ON THE MARKETS, 84 POINT 5000 NOW IS THE LEVEL FOR BITCOIN. A NEW RECORD HIGH WITH THE IDEA THAT NOT JUST TRUMP IN THE WHITE HOUSE, BUT A FAR MORE PRO-CRYPTO CONGRESS AT LARGE WILL MEAN MORE REGULATION, GIVING US MORE CLARITY AND CHANGE AT THE TOP OF THE SEC. MICROSTRATEGY, DINING OUT ON THAT, IT'S BECOME A PROXY FOR BITCOIN OWNERSHIP.
BUT THEY HAVE BEEN INVESTING MORE, 25 THOUSAND BITCOIN PURCHASED OVER THE LAST FEW TRADING DAYS, UP SOME 18%, HAVING OUTPERFORMED EVEN NVIDIA SINCE THE START OF 2000 20. AN ABSOLUTELY PHENOMENAL RUN FOR THAT STOCK. WHAT'S ALSO INTERESTING IS THE NEWS WE GOT WHEN IT CAME TO CRYPTO. FTX FILED A LAWSUIT AGAINST BINANCE TO RECOVER 1.8 BILLION DOLLARS, ALLEGEDLY FRAUDULENTLY TRANSFERRED BY SAM BANKMAN-FRIED, USING THE EXCHANGE TOKEN COINS TO PAY FOR A SHARE REPURCHASE DEAL IN 2021, MADE FRAUDULENTLY AS THEY WERE ALLEGEDLY INSOLVENT AT THE TIME. ED:
THERE'S A LOT MORE TO COME UP, INCLUDING AI TRANSFORMING SOLUTIONS IN THE CLIMATE TECH SPACE WITH JAMES JOAQUIN. THAT'S NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ED: TIME FOR THE VC ROUND UP. TELL ABOUT SAYS THAT THEY ARE LOOKING TO DIVERSE APPEAL -- DIVERSIFY INTO HEALTH CARE, BEAUTY, AND FINTECH. THIS IS THE MIDDLE EASTERN SUBSIDIARY OF DELIVERY HERO, TEEING UP A SHARE SALE AT 14.4
BILLION. PLUS SWAGGY WITH ITS $1.4 BILLION IPO OVER THREE TIMES ON FRIDAY WITH A LATE SURGE IN DEMAND, ONE OF THE FEW $1 BILLION LISTINGS IN INDIA THIS YEAR, DRAWING BIDS FOR SIX TIMES THE SHARES AS FOREIGNERS AND DOMESTIC MONEY MANAGERS.
LNG HAS ADDED DOMESTIC CAPITAL TO ITS BANKS FOR A POTENTIAL IPO IN THE INDIAN UNIT ACCORDING TO SOURCES. THEY WERE SELECTED AS THEY MOVED FORWARD WITH A SHARE SALE IN MUMBAI, SEEKING TO RAISE $1.5 BILLION. CAROLINE: LET'S TALK ABOUT THE U.S. AND HOW IT WILL CONTINUE A FIGHT AGAINST CLIMATE CHANGE EVEN WITH DONALD TRUMP IN THE WHITE HOUSE. THOSE ARE THE WORDS OF JOHN
PODESTA EARLIER TODAY AT COP 29. LET'S DISCUSS THIS AND HOW PERHAPS ARTIFICIAL INTELLIGENCE COULD HELP WITH THAT. JAMES JOAQUIN IS WITH US. THE VENTURES WERE FOUNDED OVER A DECADE AGO. WHEN YOU DO SEE A POTENTIALLY NEW ADMINISTRATION COMING IN THAT DOESN'T SEEM TO BE AS PRO-CLIMATE CHANGE AVOIDANCE AS THE NEW ADMINISTRATION, WHAT DOES THAT MEAN IN TERMS OF INVESTMENT IN THE SPACE? >> FIRST AND FOREMOST, WE ARE LONG-TERM INVESTORS. WE WILL SPEND 12 TO 15 YEARS BUILDING A COMPANY BEFORE IT REACHES THE PUBLIC MARKETS. THREE PRESIDENTIAL
ADMINISTRATIONS. WE WORRY LESS ABOUT ONE ADMINISTRATION OVER ANOTHER AND TRY TO FOCUS MORE ON BRINGING THESE BREAKTHROUGH TECHNOLOGIES TO MARKET. CAROLINE: YOU BACK TO BEYOND MEAT, MULTIPLE ROUNDS THERE. WHAT IS THE NEW AREA OF INNOVATION AND CLIMATE CHANGE AND HOW IS IT BEING SPEARHEADED FROM A GENERATIVE AI PERSPECTIVE? JAMES: WITH CLIMATE THERE IS A LOT OF UNSOLVED PROBLEMS. BETTER BATTERY TECHNOLOGY. MORE RENEWED ENERGY TO POWER THE DATA CENTERS. THE THING THAT WE ARE EXCITED
ABOUT IS USING AI TO SOLVE THESE UNSOLVABLE PROBLEMS. WE CALL IT GENERATIVE SCIENCE AND IT IS THAT IDEA OF INSTEAD OF USING LARGE LANGUAGE MODELS ON THE INTERNET, WE ARE BACKING TEAMS WITH LARGE SCIENCE MODELS IN PLACES LIKE CHEMISTRY, BIOLOGY, AND PHYSICS. THOSE SYSTEMS CAN ACTUALLY OUTPUT OR GENERATE NEW SCIENTIFIC BREAKTHROUGHS. ED: I WAS WRITING THIS MORNING ABOUT THE IDEA THAT THERE ARE A LOT OF EVENTUAL -- VENTURE CAPITALISTS WHO BACKED HARRIS BECAUSE THEY FELT SHE WAS THE BETTER CANDIDATE IN TERMS OF CLIMATE, BUT THERE ARE OTHERS OUT THERE THAT BASICALLY SEE STAYING POWER, CITING DATA ON INSTALLATION AND STORAGE CAPACITY IN THOSE FIELDS. YOU SAID YOU ARE A LONG-TERM INVESTOR. HOW CLOSELY WOULD YOU TRACK
THOSE DATA SETS OVER THE NEXT FOUR YEARS? JAMES: THERE'S A LOT TO BE UNCERTAIN ABOUT AND THERE IS FEAR AND UNCERTAINTY THAT FROM 2.0 WILL REPEAL THINGS. BUT THERE IS DATA TO BE OPTIMISTIC. IF WE LOOK AT THE 200 BILLION ALREADY DEPLOYED OUT TO STATES, 160 5 BILLION WENT TO RED STATES. MORE THAN THREE TIMES WHAT BLUE STATES HAVE RECEIVED. THAT MEANS THAT IN STATES LIKE GEORGIA AND NORTH CAROLINA, TENNESSEE, WITH NEW ELECTRIC BATTERY AND VEHICLE PLANTS COMING ONLINE, THOSE ARE GOOD GREEN JOBS IN RED STATES. THAT IS CHRISTMAS FOR CLIMATE
TECH. ED: HOW FOCUSED SHOULD EVERYONE BE A NUCLEAR AND HOW IMPORTANT IS IT FOR YOU? JAMES: IT'S REALLY HAD A CHANGE OF HEART WITH INVESTORS AND ENVIRONMENTALISTS AS WE LOOK AT THE NEEDS OF OUR ENERGY GRID. WE WILL HAVE TO DOUBLE THE NUMBER OF ELECTRONS IN THE GRID TO POWER ELECTRIC VEHICLES, BITCOIN MINING, AI DATA CENTERS. OBVIOUSLY, WE WANT THE ELECTRONS TO BE GREEN.
WE DON'T WANT MORE COAL PLANTS OR NATURAL GAS PLANTS. TO DELIVER THAT MUCH POWER WE NEED TWO BIG AREAS. ONE, GEOTHERMAL, WHICH WE ARE INVESTING IN.
THE OTHER IS NUCLEAR. ED: JAMES JOAQUIN AT OBVIOUS VENTURES, THANK YOU VERY MUCH. COMING UP, WHAT WILL THE NEXT BLOCKBUSTER PRODUCT BE FOR APPLE ? TRY AND FIND OUT. THIS IS "BLOOMBERG TECHNOLOGY." TERMINAL AND ONLINE, APPLE, SPOTIFY, I HEART. THIS IS BLOOMBERG. CAROLINE: -- ED: FOR YEARS, APPLE INVESTORS FIXATED ON THE SAME QUESTION, WHAT'S THE NEXT BLOCKBUSTER PRODUCT? OUR CORRESPONDENT WROTE ABOUT IT AND JOINS US NOW. WHAT IS IT? WHAT IS THE NEXT THING THAT
WILL BE THE DRIVER OF GROWTH? LET'S STEP BACK AND TALK ABOUT THE IPHONE, RIGHT? IT GENERATES HALF OF THEIR REVENUE AS A STANDALONE PRODUCT. BUT THE REST OF IT, FROM SERVICES TO THINGS LIKE APPLECARE, AIRPODS, MAX, ALL OF THESE THINGS ARE BOUGHT BY CUSTOMERS BECAUSE THEY HAVE AN IPHONE OR ARE IN THE APPLE ECOSYSTEM BECAUSE THEY FELL IN LOVE WITH THE IPHONE. THERE WILL NEVER BE ANOTHER APPLE PRODUCT LIKE THE IPHONE, SOMETHING THAT SITS AT THE CENTER OF THE COMPANY AND GENERATES HALF OF THE REVENUE FROM HARDWARE AND THE OTHER HALF FROM THE ATTACHMENT SERVICE STANDPOINT. INVESTORS HAVE TO UNDERSTAND THAT INCOME TO THAT REALIZATION. BUT THERE ARE LITTLE THINGS,
MORE MODEST THINGS THEY WILL BRING TO MARKET. SOME OF IT BUILT AROUND THE IPHONE, SOME OF IT TOTALLY STANDALONE. THE HOPE FOR INVESTORS IS THAT THESE CAN STACK UP. THINGS THE SIZE OF THE AIR POD, THE APPLE, AND THE IPAD. THE AREAS THEY ARE EXPLORING AND MOVING INTO, HEADSETS, AND MIXED REALITY, GOING INTO AUGMENTED REALITY GLASSES OR STANDALONE GLASSES WITHOUT DISPLAYS. THINGS LIKE EXPANDED VERSION OF AIRPODS TAPPING INTO AI HOME ROBOTICS, HOME ENERGY.
A WAY TO MONETIZE HEALTH PRODUCTS INTO A SUBSCRIPTION SERVICE, RIGHT? THE BIG THING COMING NEXT YEAR IS A PUSH INTO THE SMART HOME. APPLE WILL BE DIVING TWO FEET FIRST INTO SMART HOME APPLIANCES , SO NEXT YEAR YOU WILL SEE A PUSH INTO SMART HOME DISPLAYS AND A COUPLE OF YEARS AFTER THAT THERE WILL BE A SMART HOME DISPLAY WITH A ROBOTIC LID. A BUNCH OF LITTLE CATEGORIES THEY HOPE ADD UP INTO SOMETHING BIGGER. CAROLINE: ONE CATEGORY THAT HASN'T TAKEN OFF THE WAY THEY EXPECTED WAS VISION PRO THAT IN THE LATEST ARTICLE YOU SAID WE FINALLY GOT THE KILLER APP. TALK US THROUGH IT. MARK: NOT MANY OF US HAVE THIS PRODUCT, BUT YOU WANT TO TRY, COMING UP NEXT MONTH, VISION OS 2.2 AND IT'S IN BETA NOW, I
BEEN USING IT. THERE HAS BEEN A LONG-LASTING EXTERNAL MONITOR FEATURE WHERE YOU CAN VIEW YOUR MAC DISPLAY AND IT'S BASICALLY AN ENLARGED VERSION OF WHAT IS ON THE MAC RIGHT NOW. A LOT OF PEOPLE USE THAT. THEY ARE ADDING A NEW FEATURE THAT PUTS A WIDE MONITOR OR ULTRA WIDE MONITOR ON THERE. TURN IT ON AND YOU GET A
GIGANTIC CURVED DISPLAY THAT CAN GO ALMOST 360 DEGREES AND YOU CAN SEE WHAT IS ON THE MAC THROUGH THAT. IT'S A POWERFUL TOOL IN GREAT PRODUCTIVITY USE CASE. THE PROBLEM IS, THE VISION PRO, IF YOU ARE NOT LAYING DOWN WITH YOUR HEAD ON THE BACK OF A PILLOW, IT'S OFTEN HARD TO WEAR IT FOR AN EXTENDED AMOUNT OF TIME. THE BANDS INCLUDED IN THE BOXER PART OF THE REASON. THERE'S A BACKUP HEADBAND AND A BAND WITH A THIN STRAP BEHIND IT. NEITHER ARE GOOD FOR LONG-TERM PRODUCTIVITY.
BELKIN, OWNED BY A FOXCONN SUBSIDIARY WORKING CLOSELY WITH APPLE, CAME OUT WITH AN OVERHEAD STRAP THAT ATTACHES TO THE BACK AND COMBINE, YOU CAN WEAR IT FOR LONGER. CAROLINE: MARK GURMAN, ALL THE LATEST AND GREATEST OUT OF APPLE, WE REALLY APPRECIATE IT. ED, WE ARE DOWN ON THE CHIP SECTOR WITH BITCOIN ABOVE 84000 AND TESLA, YOU SAID IT, HIGHEST SINCE 2020? ED: ASTONISHING MOMENTUM.
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