Boeing's Starliner Lifts Off, Intel Makes Deal With Apollo | Bloomberg Technology
CAROLINE: I'M CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WE ARE COUNTING DOWN TO THE LAUNCH OF THE BOEING STAR LINER IN CAPE CANAVERAL. THEY WILL BE THE FIRST TO TRAVEL ABOARD THE SO-CALLED SPACE TAXI AND THIS LAUNCH HAS BEEN PLAGUED BY PROBLEMS, DELAYED TWICE DUE TO A NUMBER OF TECHNICAL GLITCHES. THE CAT -- THE CRAFT KEY TO NASA'S PLANS TO TAKE CREW TO AND FROM THE INTERNATIONAL SPACE STATION A LOT IS RIDING ON THIS. ED:
BOEING HAS BEEN WORKING ON STAR LINER SINCE 2014 WHEN NASA FIRST AWARDED THE CONTRACTS AS PART OF THE COMMERCIAL CREW PROGRAM. AND IT'S MASSIVELY BEHIND SCHEDULE. SEVEN YEARS DELAYED. WE MAY FINALLY BE HERE AND THE IMPORTANT CONTEXT IS IN THAT TIME THE CONTRACT WAS AWARDED TO SPACEX WHO HAD FLOWN NASA STAFF TO THE ISS NINE TIMES AND FOUR PRIVATE MISSIONS AND YOU CAN SEE HOW FAR BEHIND BOEING HAS FALLEN. CAROLINE: LET'S TALK ABOUT WHAT WE ARE SEEING ON BOARD AT THE MOMENT. VETERANS, BOTH OF THEIR THIRD TIME GOING TO THE INTERNATIONAL SPACE STATION. SUNNI WILLIAMS, BARRY WHITMORE.
CAN YOU TELL US MORE? ED: WILLIAMS, A HUGELY EXPERIENCED ASTRONAUT. FIRST TIME IN 26 -- 2006 THROUGH 2007. A NUMBER OF SPACEWALKS. BUTCH, 178 DAYS IN SPACE, HE WILL BE AT THE COMMANDER OF THIS MISSION. IT IS A DIFFERENT SYSTEM TO SPACE X. IT'S A VERY DIFFERENT SYSTEM. THEY HAVE SIDE BOOSTERS, A MAIN BOOSTER, AND THEN THE CAPITOL STAR LINER ON TOP SO THERE'S A LOT HERE THAT IS NOT AS TESTED AS THOROUGHLY, BUT WE ARE GETTING CLOSE TO THIS HAPPENING AND I HAVE BEEN SKEPTICAL THAT WE WOULD GET HERE GIVEN THE MULTIPLE DELAYS EVEN IN THE LAST MONTH ALONE, BUT STAR LINER LOOKS CLEAR FOR LAUNCH.
>> SEVEN, 6, 5, 4, 3, 2, 1. IGNITION. AND LIFT OFF OF STAR LINER ATLAS FIVE CARRYING TWO AMERICAN HEROES DRAWING A LINE TO THE STARS. >> COMMANDER CALLING DOWN TO MISSION CONTROL IN HOUSTON THE SPACECRAFT IS BEGAN ROLLING AND ITS NAVIGATION AND CONTROL OFFICER IN ROUTE.
>> STAR LINER PASSING THROUGH THE POINT OF MAXIMUM DYNAMIC PRESSURE WHERE THE FORCES OF AIR FRICTION ARE HIGHEST. ED: WE HAVE PASSED THROUGH THE MOMENT OF MAXIMUM AERODYNAMIC PRESSURE OR STRESS ON THE COMPLETE CRAFT. 1.6 MILLION POUNDS OF THRUST GENERATED BY THE MAIN BOOSTER AND ON THE SIDE OF THAT THE TWO-SIDED ROCKET BOOSTERS AND THAT'S THE NEXT THING THAT WILL HAPPEN.
AT THE TWO MINUTE AND 22ND MARK, THOUGH SOLID ROCKET BOOSTERS ON THE SIDE GENERATING 348,000 POUNDS OF FRAUD -- THRUST EACH. WE CONTINUE ON OUR JOURNEY RELYING ON THAT BOOSTER FOR ABOUT TWO MINUTES OR SO. CAROLINE: WE WILL KEEP AN EYE ON STAR LINER BUT ALSO TALK ABOUT UNITED LAUNCH ALLIANCE WHO IS PROVIDING THE ROCKET AND THIS IS ULTIMATELY TWO WORKING SEAMLESSLY TOGETHER HERE. ED: THE ATLAS FIRE -- ATLAS FIVE SYSTEM IS FLOWN 100 TIMES, THE MAJORITY OF THAT UNDER THE ULA UMBRELLA PRAYED A LOT OF THE SETBACK IS THE INTEGRATED SYSTEM.
WHAT I BELIEVE WE SAW THERE WAS A SEPARATION OF THE SOLID ROCKET BOOSTER, BUT THIS IS THE FIRST TIME WE HAVE HAD SERIOUS HUMAN SPACEFLIGHT UNDER THE UL A UMBRELLA WITH ATLAS FIVE AND IT'S PART OF A MUCH BIGGER INTEGRATED SYSTEM. THE SHARES UP 3/10 OF A PERCENT. I'M NOT SURE WHAT YOU WOULD EXPECT MAYBE A RELIEF RALLY, MAYBE NOT BECAUSE HOW MANY YEARS BEHIND SCHEDULE WE ARE AND HOW ANY BILLIONS OF DOLLAR OVERBUDGET WE ARE. IT'S AN IMPORTANT MILESTONE FOR THAT SYSTEM, WE HAD THE CONTEXT SINCE 2014 WHEN NASA AWARDED THE DUAL CONTRACTS TO SPACE X AND BOEING, SPACE X HAS MADE THIS ROUTINE AND GONE THROUGH IT MANY TIMES. CAROLINE:
LET'S LOOK AT SOME OF THE DIFFERENCES IN TERMS OF THE NUANCES OF HOW THE FLIGHT IS APPROACHED. WE ARE NOT SEEING A USABLE ROCKET AND INDEED A SMALL AMOUNT OF SIZE DIFFERENCES. ED: THEY ARE VERY DIFFERENT LAUNCH SYSTEMS. FALCON 9 HAS A FULLY REUSABLE BOOSTER. THERE ARE WAYS THAT ARE SIMILAR. THE TOTAL THRUST AT SEA LEVEL
OF FALCON 9 IS ABOUT 1.7 MILLION POUNDS BRING THE TOTAL COMBINED SYSTEM OF CST 100 IS ABOUT 1.6 MILLION POUNDS OF THRUST. THEY WILL TRAVEL OR SIMILAR -- SIMILAR TOP SPEEDS.
ON ITS WAY TO ITS NEXT STAGES OF SEPARATION WE ARE TRAVELING MAYBE 17,000 MILES PER HOUR'S SIMILAR TO FALCON 9. FALCON 9 DOES NOT RELY ON THOSE ADDITIONAL SIDE BOOSTERS OR THE TWO ADDITIONAL SOLID ROCKET BOOSTERS LIKE THE CST 100 SYSTEM DOES. THERE ARE ADDITIONAL STAGES OF SEPARATION.
I WANT TO MAKE SURE WE GET THIS RIGHT. FOUR MINUTES IN AND THE NEXT KEY MILESTONE IS THAT THE MAIN BOOSTER WILL CUT OFF ITS ENGINES AND FROM THERE, THE SECONDARY STAGE SEPARATE FROM THE MAIN BOOSTER. CAROLINE: ULTIMATELY WAITING FOR THAT FOUR MINUTE 34 MARK. FOUR MINUTES 32 SECONDS IN AND IT SEEMS TO BE GOING SMOOTHLY AND MUCH TO THE RELIEF. TAKE A LOOK.
THAT WAS THE SEPARATION CORRECT? THAT WAS THE ATLAS CENTAUR SEPARATION. ABOUT FOUR MINUTES 50 SECONDS IN. >> THAT IS BASICALLY THE SECOND STAGE BOOSTER PULLING AWAY FROM THE MAIN ATLAS BOOSTER IN A STAGE CALLED ATLAS BOOSTER ENGINE CUT OFF THE NEXT BIG SORT OF MILESTONE ISN'T ABOUT 10 MINUTES TIME I WOULD SAY WHERE STAR LINER, THE CAPSULE ON TOP WILL SEPARATE ON AND SEND THOSE TWO ASTRONAUTS ON THEIR WAY. IT IS INCREDIBLE THE IMAGES WE HAVE SEEN, SPACE IS HARD AND BOEING HAS COME IN FOR A LOT OF CRITICISM. IT'S $1.5 BILLION OVER BUDGET. THE STOCK BASICALLY FLAT.
EVERYTHING IS NOMINAL. IT'S GOING TO PLAN AND WE FINALLY GOT HERE. >> SPACE IS COSTLY. AND WE WANT TO GO TO SOMEONE WHO REALLY UNDERSTANDS THE INTRICACIES OF TRYING TO WORK WITH PRIVATE AND PUBLIC INTEGRATION OF GETTING MORE HUMANS TO THE INTERNATIONAL SPACE STATION. SENIOR FELLOW, FORMER WHITE HOUSE DIRECTOR SPACE POLICY, A NASA EXECUTIVE. I DON'T KNOW WHO WOULD BE MORE
PERFECT TO WEIGH IN. THUS FAR THIS IS GOING SUCCESSFULLY. HOW IMPORTANT IS THIS TO THE U.S. SPACE ECOSYSTEM.
>> IT IS CRITICALLY IMPORTANT. WE ARE SEEING THE SUCCESS OF THIS LAUNCH SO FAR WE CONTINUE TO LEAD AS A NATION BECAUSE WE ARE NO LONGER IN A SPACE RACE WE HAVE OVER 90 SPACE PROGRAMS GLOBALLY. SO CONTINUED LEADERSHIP IS IMPORTANT FOR THE U.S. TO KEEP OUR EDGE AND CONTINUE TO PIONEER. THIS IS A BEAUTIFUL SITE FRANKLY.
ED: YOU CONTRIBUTED TO DOZENS OF DIFFERENT NASA MISSIONS. SINCE 2014 WHEN NASA FIRST AWARDED THOSE CONTRACTS MUST -- MUCH BIGGER PICTURE OF THE PROGRAM IT'S BEEN SUPER FRUSTRATING TO SEE BOWING TAKE 10 YEARS TO GET TO THIS POINT. SPACE X X HAS PULLED AHEAD MASSIVELY. HOW WILL THAT HAVE GONE DOWN INSIDE OF NASA? HOW IS THE AGENCY CAN BE VIEWING THIS MOMENT? EZINNE: THERE'S A LOT OF CELEBRATION AND RELIEF.
YOU ARE SEEING THE RESILIENCE OF SCIENTISTS AND ENGINEERS OVER A DECADE AND ONE OF THE CRITICAL SKILLS AND ENGINEER HAS IS THE ABILITY TO BE DISAPPOINTED FOR THREE SECONDS AND THEN MOVE ON TO FIND A SOLUTION TO THE NEXT PROBLEM. WE WITNESSED IT FOR THIS LAUNCH IN PARTICULAR OVER THE LAST MONTH AND THAT IS WHAT HAS HAPPENED OVER THE LAST DECADE AND NASA IS EXPERIENCING THIS BECAUSE OVER 60 YEARS OF PUTTING TOGETHER MISSIONS AND SPACECRAFT WE HAVE HAD OUR SHARE OF CHALLENGES. SO WE UNDERSTAND AND ARE FRANKLY CHEERING BOEING ON TODAY. CAROLINE: VERY HUMBLED OUTLINE SOME OF THE WAYS NASA HAS ITS OWN ISSUES. I WENT OUTLINE SOME OF THE CONCERNS WE'VE HAD LEADING UP TO THIS LAUNCH.
THERE WAS A PRESSURE VALVE THAT WAS A CONCERN, THE ROCKET WE HAD A SMALL HELIUM LEAK THAT SEEMS TO BEEN DEEMED NOT A WORRY THEREFORE IT DID NOT NEED TO BE FIXED FOR THIS MISSION TO CONTINUE. PREVIOUSLY WE SAW THE WHOLE MISSION WAS CALLED OFF FOR MINUTES BEFORE LAUNCH BASED ON THE LAUNCH COMPUTER BEING SOMEWHAT DELAYED. THERE IS SO MUCH INTRICACY WHEN IT COMES TO THESE SORTS OF HUMONGOUS VERY COSTLY LAUNCHES. I WANT TO UNDERSTAND HOW IMPORTANT IT IS TO HAVE MORE PRIVATE PLAYERS IN THE GAME. COMMON BOARD WE NEED? EZINNE: AS MANY AS WE CAN HAVE. THIS IS A VERY CHALLENGING BUSINESS AND WE CONTINUE TO SUPPORT LOTS OF SMALLER COMPANIES, LOTS OF COMPANIES FOCUSED ON SMALLER CARGO AND SPACECRAFT INTO SPACE.
THERE'S A LOT OF EXCITING OPPORTUNITIES NOT JUST IN THE U.S. BUT IN OTHER COUNTRIES AND IT'S IMPORTANT BECAUSE WHEN WE HAVE A LAUNCH BECOME MORE UBIQUITOUS, THE IDEA OF SPACE TOURISM BECOMES ACCESSIBLE AND CHILDREN MAY ONE DAY TAKE A FIELD TRIP TO SPACE BECAUSE THE OPPORTUNITIES TO FLY ARE AVAILABLE AND ACCESSIBLE. ED: WHAT WE ARE LOOKING AT HIS COMPUTER GENERATED IMAGE GIVING THE APPROXIMATE STATUS OF THE STAR LINER CAPSULE ATTACHED TO THE SECOND STAGE BOOSTER. IN ABOUT FIVE MINUTES TIME
THOSE WILL SEPARATE AND IT WILL CONTINUE ON ITS JOURNEY TO THE INTERNATIONAL SPACE STATION. THE INTERNATIONAL SPACE STATION MAKES ME THINK A LOT ABOUT THE FUTURE. IT'S DUE TO BE DECOMMISSIONED IN 2030 AND SO TODAY IS A MASSIVE SUCCESS, CREDIT TO BOEING TO FINALLY ACHIEVE THIS AS IT STANDS. BUT IT SEEMS LIKE THE STAR
LINER SYSTEM HAS A LIMITED SHELF LIFE. THEY MIGHT GET SIX MISSIONS BEFORE ISS IS DECOMMISSIONED. DO YOU SEE A FUTURE FOR BOEING IN THE PASSAGE OF HUMANS FROM EARTH INTO ORBIT AND BEYOND? EZINNE: MOST COMPANIES DON'T SHARE SOME OF THE RESEARCH AND DEVELOPMENT THEY ARE WORKING ON WHILE THEY ARE COMPLETING OTHER COMPLEX MISSIONS. AS YOU NOTICED THIS IS AN EFFORT COMBINING MULTIPLE COMPANIES, BOEING, ULA AND OTHER SMALLER BUSINESSES AND CONTRACTORS WHO HELPED TO MAKE THIS HAPPEN. SO WITH THE RETIREMENT OF THE INTERNATIONAL SPACE STATION IN 2030 WE ARE LIKELY TO SEE NOT JUST COMMERCIAL U.S. OWNED SPACE STATIONS REPLACE THE INTERNATIONAL SPACE STATION BUT ALSO INCREASED COMMERCIAL LAUNCH ACTIVITY SO THE SPACE SECTOR CONTINUES TO BE DESCRIBED AS EMERGING AS A TECHNOLOGICAL SPACE.
WHAT WE SEEN AND MENTIONED IS IT TAKES SOMETIMES 30 YEARS TO EMERGE. SOME OF THESE COMPANIES WORK ON THIS INCLUDING BOEING AND THEY MIGHT SURPRISE US WITH WHAT THEY HAVE IN STORE. CAROLINE: YOUR FOCUS IS OFTEN SUSTAINABILITY HERE. HOW SUSTAINABLE IS BOEING U LA, HOW MUCH ULTIMATELY SUSTAINABILITY CAN BE ACHIEVED AND A CLEAN PROCESS OF PUTTING SATELLITES INTO LOW-EARTH ORBIT AS WELL. EZINNE: SUSTAINABILITY IS A VERY TOUGH CHALLENGE IN SPACE AND RIGHTLY SO REUSABLE ROCKETS ARE MORE SUSTAINABLE THAN A ROCKET WITH A SINGLE USE. HOWEVER WE HAVE TO THINK ABOUT THE SYSTEMS AND THIS HAS SIX FLIGHTS AND AFTER DEVELOPMENT CYCLE THAT'S A 10 YEARS LONG GETTING SIX LAUNCHES OUT OF IT IS A HELPFUL START TO THE FUTURE WHERE WE HAVE AN INCREASED AMOUNT OF REUSABLE ROCKETS WITH SPACECRAFT AND SATELLITES IN SPACE WE HAVE A WHOLE SLEW AROUND WHEN SATELLITES CAN DEORBIT SO THEY DON'T ABET -- END UP AS SPACE DEBRIS OR JUNK. HAVE A PROCESS IN PLACE TO HELP
TO MITIGATE AND HELP TO ENSURE THAT WE HAVE AS LITTLE DEBRIS AS POSSIBLE IN SPACE WHILE WE TRY TO CLEAN UP EVERYTHING THAT'S THERE. ED: THINKING ABOUT THE MEN AND WOMEN OF NASA, THE CONTROL STAFF AT THE AGENCY, WHAT WILL BE INTERESTING ABOUT CST 100 IS IT IS NASA CONTROL TEAMS THAT ARE RUNNING THE MISSION ALONGSIDE BOEING. SPACE X HAS ITS OWN CONTROL TEAMS SO FOR YOUR FORMER COLLEAGUES AND FRIENDS AT NASA, IT'S ALSO BEEN A VERY LONG JOURNEY FOR THIS SYSTEM AND PROJECT EVEN THOUGH WE FOCUS ON THE BOEING COMPONENT. EXPLAIN THE DEPTH OF TALENT IN THOSE COLLEAGUES YOU KNOW THAT HAVE WORKED ON THIS PROJECT. EZINNE:
YOU HAVE PEOPLE WHO HAVE BEEN AT THE AGENCY FOR AT LEAST TWO DECADES. WHO WORKED IN MISSION CONTROL FOR DECADES. PEOPLE SKILLED IN PHYSICS AND CHEMICAL ENGINEERING. A PLETHORA OF ENGINEERING DISCIPLINES. AND ARE TODAY SUPPORTING THE BOEING STAR LINER.
YOU HAVE COLLEAGUES WHO HELPED AND THE ASTRONAUTS THAT VISIT IT AFTER CONSTANT COMMUNICATION. WE YOU HAVE NOT -- A LOT OF NASA LEADERS THERE IS A CONTINUITY AND RESILIENCE ENGINEERING AND LEADERSHIP. CAROLINE: WE ARE ABOUT TO START WITNESSING A KEY MOMENT. ED: THE STAR LINER CAPSULE SEPARATES FROM THE CENTAUR SECOND STAGE. AS YOU CAN SEE ON YOUR SCREEN, ANY SECOND THERE IS YOUR COMPUTER-GENERATED REPRESENTATION.
WHAT TIMING THAT WAS. BEFORE THAT, YOU HAD THE CENTAUR MAIN ENGINE CUT OFF HAPPEN PRIOR TO THAT. THERE'S AN IMPORTANT TECHNOLOGICAL DISTINCTION BETWEEN WHAT WE ARE SO USED TO WITH SPACE X AND FALCON 9 AND THIS CST 100 SYSTEM WHICH IS THE ONLY REUSABLE PART ON -- IS THE STAR LINE CAPSULE. THE MAIN BOOSTER CENTAUR ARE NOT RECOVERABLE IN THE SAME WAY THE FALCON BOOSTER IS. SO FAR, EVERYTHING IS NOMINAL. THIS IS GOING TO PLAN. BOEING STOCKS DOWN MODESTLY. CAROLINE: THIS IS SUCH CONTAINED EXUBERANCE AND EUPHORIA, BUT THERE IS MUCH TO LOOK FORWARD TO NOT ONLY OF COURSE WITHIN THE NEXT 24 HOUR PROCESS THESE TWO VETERAN ASTRONAUTS ARRIVING BUT MAYBE CHILDREN WILL BE VISITING THESE OUTER PARTS OF SPACE SOON ENOUGH ON A CONSUMER BASIS.
VIRGIN GALACTIC IS PLANNING FOR THEIR NEXT TRIP. ARE YOU SEEING THINGS GOING AS WELL AS YOU LIKE. EZINNE: THIS IS EXTREMELY CHALLENGING. WE HAVE TO REMEMBER ASTRONAUTS
HAVE TYPICALLY BEEN MARINES, THE BEST OF THE BEST AND THEY TRAIN FOR AT LEAST A DECADE AT NASA BEFORE THEY FLY AND THE FACT WE CAN SIMPLIFY THAT PROCESS THAT ALLOWS CITIZENS AND NON-MARINES AND NON-AIR FORCE PILOTS AND NON-ROCKET SCIENTISTS TO CONDUCT EXPERIMENTS ON SOME OF THESE FLIGHTS IS REALLY ENCOURAGING. IT REMINDS ME OF THE FIRST DAYS OF HISTORY AND THE FIRST DAYS OF AVIATION. AS WE CONTINUE TO SEE THESE FLIGHTS HAPPEN, WHAT WE HOPE TO SEE IS SCHOOL FIELD TRIPS TO A FUTURE PRIVATE COMMERCIAL SPACE STATION OR A TRIP AROUND THE EARTH AND THAT IS EXCITING TO BEHOLD. ED: WE ARE LOOKING AT YOUR LIVE SHOT AND WE'VE BEEN RELYING ON COMPUTER-GENERATED IMAGES. IT'S -- WE DON'T HAVE THAT AS
RELIABLE CAMERA FEED WITH STAR LINER AS PERHAPS WE DO WITH FALCON 9. EVEN SO EVERYTHING FROM THE NASA FEED TELLS US THAT WE ARE NOMINAL SO FAR. WE'VE ENJOYED HAVING YOU WITH US ON BLOOMBERG TECHNOLOGY FOR THIS LAUNCH. JUST YOUR PARTING THOUGHTS ON
THIS MOMENT THAT I GUESS ALSO WHETHER OR NOT IT WILL BE A CATALYST FOR BROADER PROGRESS IN COMMERCIAL SPACE BEYOND WHAT WE RELIED ON SPACE X TO BRING. EZINNE: THE GLOBAL SIGNIFICANCE IS LARGE. WE HAVE YOUNG ENGINEERS LOCALLY AND NATIONALLY WHO WILL BE INSPIRED BUT WE ALSO HAVE ENTREPRENEURS WHO WILL BE INSPIRED TO START THEIR ROCKET PROGRAMS, TO JOIN SPACE AGENCIES IN OTHER COUNTRIES WHO MAY DECIDE THIS IS THE TIME TO START THEIR OWN SPACE PROGRAM. WITH THIS INSPIRING AND EXCITING SUCCESSFUL FEET, WE CAN ONLY HOPE TO SEE MORE INVOLVEMENT GLOBALLY AND WHAT THAT MEANS WITH MORE RESOURCES IN THE MULTIPLICATION OF CAPITAL. MORE INTEREST AND FOR SPACE INVESTORS AND OTHERS WHO ARE INTERESTED IN TECHNOLOGY. >> 20 YEARS OF COURSE U.S. GOVERNMENT SERVICE, PERFECT
GUEST TO LIVE THROUGH SOME OF THESE INCREDIBLE IMAGES. THANK YOU FOR JOINING US, A SENIOR FELLOW AT HARTFORD'S BELFORD CENTER. -- HARVARD'S BELFORD CENTER. MARKETS, BOWING ON THE DOWNSIDE. ON THE HIGH SIDE IS NASDAQ. BIG TECH LEADING THE CHARGE. SOME MIXED DATA TODAY.
SERVICES SHOWING A RESILIENT U.S. ECONOMY. JOBS MARKET DATA HELPING THE BOND MARKET RALLY ON THE 10-YEAR. IMPORTANT RATE CUT HAPPENING IN CANADA. CURRENTLY UP A QUARTER OF 1%. DIG INTO INDIVIDUAL STOCKS FOR US. >> CROWD STRIKE BEATING IN THE QUARTER, REALLY BUCKING THE TREND, ONE OF THE BENEFICIARIES OF MICROSOFT MISSING THE MARK. HPE SURGING. A CLEAR TAILWIND FROM
INFRASTRUCTURE BUILT OUT. IT'S NOT JUST THE CHIPS BUT IT IS THE CASING AND THE REST OF THE SERVER COMPONENTS WHICH HPE IS A CONTRIBUTOR TO BRING THAT WAS FABULOUS. I REALLY ENJOYED DOING THAT, WHAT A MOMENT IN COMMERCIAL SPACEFLIGHT. WE WILL BE RIGHT BACK, THIS IS BLOOMBERG TECHNOLOGY. ♪ >> THE INDIAN PRIME MINISTER WINNING A CRUCIAL BATTLE FOR TWO KEY ALLIES ALLOWING IT TO FORM A GOVERNMENT AND EXTEND HIS DECADE IN POWER. JOINING US IS A NONRESIDENT SENIOR FELLOW IN THE U.S.
POLICY STUDIES. WHAT MAY BE WILL HAVE TO CHANGE IN THE NEXT GOVERNMENT IS PERHAPS MORE OF AN EQUAL DISTRIBUTION PROGRAM. I'M INTERESTED IF TECHNOLOGY WILL BE A SOUL FOR THAT IN SOME WAY. >> I SEE THIS GOING TO BE A COALITION BECAUSE THE BJP HAS NOT GOT THE MAJORITY OF ITS OWN. THE OPPOSITION ALLIANCES GOT 230 TWO SEATS SO IT'S NOT A CLEAR MAJORITY. MANY WILL THINK THE DECISIONS BUT THAT MAY NOT BE THE CASE ALL THE TIME. THE COALITION GOVERNMENTS HAVE
DELIVERED ON REFORMS. WHICH HAVE HAPPENED SINCE THE LAST 76 YEARS HAVE BEEN IN THE YEAR 1991 IT WAS A MINORITY GOVERNMENT NOT EVEN A COALITION GOVERNMENT. , THE FORMER PRIME MINISTER OR FINANCE MINISTER ECONOMIC REFORMS IN THE COUNTRY.
MOST OF THE COALITION GOVERNMENTS HAVE DONE BETTER ON THE REFORMS PROCESS AND HAVE MET THEIR BUSINESS EXPECTATIONS. CONTRARY TO THE POPULAR BELIEF. ED: WE'VE BEEN CARRYING BOEING'S MISSION INTO SPACE. THE INDIA SPACE AMBITIONS WERE REFLECTED ABOUT MODI'S OPEN ARMS TO THOSE ARTIFICIAL INTELLIGENCE. IN THE COALITION SCENARIO IS HE GOING TO BE ABLE TO CARRY THROUGH WITH THAT. >> I WOULD BELIEVE SO. IF YOU LOOK AT THE PRIME
MINISTER'S PARTY ELECTION MANIFESTO, THE MANY THINGS THEY'VE TALKED ABOUT, THEY HAVE TALKED ABOUT HAVING THE INTERNATIONAL MISSION. THEY TALKED OF THE FIRST HUMAN SPACEFLIGHT MISSION AND THEY HAVE BEEN BROUGHT INTO POWER. ALSO THEY HAVE A INDIAN ASTRONAUT ARID THE PRIME MINISTERS BEEN VERY UPBEAT ABOUT THE SPACE MISSION, WITH SPACE X THERE BEEN SOME CHANGES IN THE POLICY. TO ACCOMMODATE THE BUSINESS ASPIRATIONS. THERE'S A HUGE AMOUNT IN SEVERAL AREAS. SPACE AND TELECOM.
I DON'T THINK THAT SLOWING DOWN AT ALL. VIS-A-VIS A MAJORITY OF ITS OWN. CAROLINE: WE TALK BUT INDIA IN THE CONTEXT OF HOMEGROWN BIG TECHNOLOGY SERVICES COMPANIES. LARGELY BIG COMPANIES COMING TO INDIA TO INVEST. WHAT ABOUT THE VENTURE CAPITAL ECOSYSTEM.
IS THAT CAN BE FLOURISHING UNDER THE NEW GOVERNMENT? >> ONE THING IS VERY CLEAR, WHICHEVER GOVERNMENT COMES TO POWER IN INDIA, THERE ARE CERTAIN CONTINUITY IN THE ECONOMY IN THE REFORMS PROCESS IN BEING FRIENDLY TO THE BUSINESS COMMUNITY AND SO ON AND SO FORTH. I DON'T SEE THAT SLOWING DOWN AT ALL. THERE ARE SEVERAL SECTORS IF YOU LOOK, ONE DIFFERENCE IS INDIA SHOULD NOT BE SEEN AS A LOW COST BACK-OFFICE DESTINATION. I THINK MAJOR FINANCIAL POWERS
HAVE TO LOOK AT CODEVELOPING AND COPRODUCING WITH INDIA. THAT'S ONE OF THE DAYS WHERE -- WE HAVE TO HAVE OUR OWN DEVELOPMENT PROCESS AND DEVELOPMENT SPACE. THAT'S GOING TO BE A GENUINE WIN-WIN BETWEEN DEVELOPED COUNTRIES AND INDIA. >> THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES, IMPORTANT CONVERSATION ON INDIA. WE WILL BE RIGHT BACK.
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: INTEL AGREED TO SELL AN EQUITY INTEREST IN A PLANT IT'S BUILDING IN IRELAND TO APOLLO GLOBAL MANAGEMENT. INTEL WILL HAVE A 51% CONTROLLING INTEREST IN A JOINT VENTURE AND WILL RETAIN FULL OWNERSHIP AND OPERATIONAL CONTROL.
DANI BURGER SAT DOWN WITH APOLLO COPRESIDENT ON THE SIDELINES OF THE EQUITY EVENT IN BERLIN ASKING ABOUT IT. >> I THINK YOU WILL SEE MORE AND MORE OF THIS COMING FROM APOLLO. BUT IN GENERAL, JUST THE NEED FOR THIS TYPE OF CAPITAL IS INSUFFICIENT. ED: LET'S GET THE CHIPS ASIDE. THIS IS PAT'S PLAN OF SMART CAPITAL. TO ACHIEVE A TRANSFORMATION. >> THE KEY IS INTEL'S MONEY.
IT HAS MORE THAN $50 BILLION IN DEBT, NEGATIVE CASH FLOW. ITS EARNINGS ARE A BIT UNDER PRESSURE SO IT NEEDS EXTERNAL CAPITAL TO PROTECT THAT BALANCE SHEET. CAROLINE: WE'VE SEEN INTERESTING RELATIONSHIPS BEING BORN.
ANNEX P, THE CHIPMAKER IN EUROPE TEAMING UP WITH TSMC TO BUILD OUT IN SINGAPORE. ARE WE CAN HAVE TO SEE MORE COMING TOGETHER OF CAPITAL AND ALLIANCES LIKE THIS BECAUSE IT'S SO EXPENSIVE. IAN: THIS IS NOT A HOBBY. THESE THINGS COST $20 BILLION AND ITS USEFUL LIFE IS NOT THAT LONG. FIVE YEARS AND IT'S GONE. YOU NEED TO PUT A LOT OF MONEY
INTO THIS. CAROLINE: MORE MONEY INTO IAN KING. IAN: THE COST OF CAPITAL IS IMPORTANT WHEN YOU'RE IN THIS PHASE LIKE INTEL IS IN RIGHT NOW. GELSINGER HAS A LOT OF PRESSURE ON HIM ON ALL SIDES, HE IS ABSOLUTE AND HAVE TO DO MORE OF THIS KIND OF THING. CAROLINE: HAVE WE HEARD MORE IN TERMS OF WHAT THESE FUTURES? IAN: THAT'S THE BIG QUESTION.
WE NEED A BIG CUSTOMER, WE NEED AN NVIDIA, WE NEED AN AND TO SAY INTEL WE WANT TO BRING IN THESE MENU -- FACTORIES ARE BUILDING IN. SO FAR WE HAVEN'T HEARD THAT. INTEL DOESN'T WANT US TO TALK ABOUT IT BUT TRUST ME WE HAVE PLENTY LINED UP. THE MARKET IS KIND OF IN A WAIT-AND-SEE MODE ON THAT. ED: THEY ARE TALKING ABOUT CUSTOMERS SO IT CAN BE A CONTRACT MANUFACTURER FOR THEM AND AT THE SAME TIME GELSINGER WANTS THEM TO HAVE PRODUCTS, THE ONES THAT THEY OFFERED FOR PC DATA CENTER. HOW DO YOU PULL OFF BOTH? >> THAT IS A TENSION AT THE HEART OF THIS PROJECT. A COMPANY THAT HAS BEEN BRUTALLY COMPETITIVE FOR MULTIPLE DECADES AND IS MADE EVERY OTHER COMPANY OUT THERE SUFFER IN ITS WAKE AND NOW IT'S SAYING GIVE US YOUR BEST STUFF WE WILL MAKE IT FOR YOU.
>> BLOOMBERG'S IAN KING LEADING OUR COVERAGE HERE ON BLOOMBERG TECHNOLOGY. INTEL IN THE NEWS HEADLINES. THE FOUNDRY AND THE PRODUCT SIDE AS WELL. COMING UP WE WILL BREAK DOWN THE EARNINGS OF ANOTHER PLAYER IN WHAT'S HAPPENING IN THE DATA CENTER AND AI BUILD, HPE EARNINGS WITH ITS CEO, OF THE CONVERSATION WE ARE LOOKING FORWARD TO.
ED: ED LUDLOW IN SAN FRANCISCO. CAROLINE: WE ARE UP AND AWAY, WE ARE CURRENTLY STILL UP MORE THAN PERCENTAGE POINT. , BIG TECH MANAGING TO LEAD THE CHARGE.
IT'S LIKE A COOLING OF THE -- A SLIGHT COOLING OF THE JOBS MARKET. WE WILL SEE THE FED ABLE TO CUT, STILL RESILIENT SERVICES SECTOR AND BUSINESS ACTIVITY IN THE UNITED STATES. BITCOIN ON THE UP 1.6%. CLIPS AT 72,000 WE GO TO MORE RECORD HIGHS. IT WON HOW TO THOUSAND DOLLARS BY THE END OF THE YEAR.
INDIVIDUAL NAMES ON THE MOVE. AND AI THEME AT A CHIP THEME AS WELL. TRADING HERE IN THE U.S., BUT ALSO OVER IN EUROPE.
THIS AS WE SEE THAT YES IT WILL BE DELIVERING ITS LATEST EQUIPMENT MAKING FACILITIES OVER IT TSMC. THEN WE WANT TO SEE THE LATEST VERSION AT TSMC THAT PUSHED US HIGHER. AND THEY ARE MIXED ON A SHOW ME STORY. COMING FROM CISCO THAT THEY ARE NETWORKING GEAR OF CHOICE GETTING IN THE LIKES OF AI PARTICULAR WE ARE DOWN 2.8%,
WORRIES ABOUT HOW MUCH AI WILL ADD TO THEIR OVERALL PROFITABILITY IN THE HERE AND NOW. I WANT TO TALK ABOUT AI ADDING TO PROFITABILITY ON REVENUE IN THE HERE AND NOW. UP 11% AFTER ITS NUMBERS CAME OUT. THIS IS CLEARLY A SIGN OF REVENUE RETURNING TO GROWTH FOR THE QUARTER. WE ARE SEEING THE IDEA AI
SYSTEMS IS WHERE WE SEE ALMOST A BILLION DOLLARS IN REVENUE BEING DONE ON THE QUARTER. THEY ARE TRIPLING THE ENTERPRISE CUSTOMER BASE. WANT TO SEE HOW MUCH MARGIN IS COMING OUT OF THAT. ED: THAT'S EXACTLY THE FOCUS OF THE MARKET THIS MORNING. JOINING US TO DISCUSS IS THE HEWLETT-PACKARD ENTERPRISE CEO ANTONIO MARY.
I LOOK AT HPE AND THE STOCK PERFORMANCE AND YOU ARE NOT GETTING THE CREDIT THE DELL OR MICRO, I SEE JENSEN PAT MIKE ODELL ON THE BACK AND SAY IF YOU NEED A SCALABLE SERVICE SOLUTION YOU PHONE MICHAEL DELL. YOUR MARGINS ARE BETTER. ARE YOU STARTING TO GET SOME CREDIT FOR THE ROLE YOU ARE PLAYING IN THE AI INFRASTRUCTURE BUILD OUT? >> GOOD MORNING, GREAT TO BE HERE WITH YOU TODAY. I COMPLETE THE AGREE WITH YOU THAT HPE IS NOT GETTING THE DUE CREDIT FOR THE POTENTIAL OF WHAT WE DO FOR AI AND THE RESULTS WE HAVE BEEN DELIVERING INCLUDING THIS PAST QUARTER. WHEN WE THINK ABOUT THAT -- OUR QUARTERS, NUMBER ONE WE BE REVENUE AND EPS, AND THAT WAS THE AI SYSTEM REVENUE CONVERSION ALMOST $1 BILLION. WE HAVE A TERRIFIC PIPELINE WHICH IS MULTIPLES AND NOW WE START SEEING THE UPTICK IN ENTERPRISE WHICH OBVIOUSLY WE HAVE A SIGNIFICANT PRESENCE.
THE REALITY IS WE HAVE UNIQUE CAPABILITIES. WHEN I THINK ABOUT KIT ABILITIES HPE HAS IN THIS INFLECTION POINT AI NUMBER ONE WE NOW HAVE TO RUN AI AT SCALE. IT'S MORE THAN TO JUST SUPERCOMPUTER NOW AND THAT'S ON THE BACK OF OUR UNIQUE EXPERTISE IN IP, INTELLECTUAL PROPERTY SO WE KNOW HOW TO BUILD THE SYSTEMS AND THEN WE HAVE A UNIQUE MANUFACTURING FOOTPRINT AS WE THINK ABOUT THE NEXT GENERATION OF SILICON WILL REQUIRE 100% AND HP IS ONE OF THOSE COMPANIES THAT CAN DO IT ALL. LAST BUT NOT LEAST IS THE
SERVICES PIECE AND WHEN YOU TALK ABOUT PROFITABILITY OF AI, WE THINK OF IT AS A COMPLETE PULL THROUGH, IT'S NOT JUST THE INFRASTRUCTURE SIDE IT IS ALSO THE SERVICES SIDE AND WE HAVE A VERY SOLID MARGIN PERFORMANCE IN OUR AI SYSTEMS WHICH IS PART OF THE SERVER SEGMENT WHERE WE DELIVERED 18% GROWTH YEAR-OVER-YEAR AND DELIVERED AN 11% OPERATING PROFIT IN THE GUIDANCE WE PROVIDED. CAROLINE: YOUR CFO TALKING ABOUT PRUDENT COST DISCIPLINE, IS THAT WHAT HELPS WITH THE MARGIN AS WELL, LET'S CALL IT JP MORGAN, THE ANALYSTS SAYING THE RESULTS AND THE OUTLOOK ECHOED SIMILAR AI SERVICE STORY OF REVENUE WITH LIMITED MARGINS. THEY ARE NOT HEARING YOU ON THE FACT YOU HAVE STRONGER MARGINS.
>> I THINK IT'S COMBINATION OF THREE UNIQUE THINGS. NUMBER ONE IS PRUDENT BUSINESS DISCIPLINE. WE HAVE BEEN ON THAT JOURNEY FOR A LONG TIME. WE PURSUE DEALS WE CAN SEE A PATH TO PROFITABILITY AND THAT WE CAN PULL THROUGH. THAT'S NUMBER ONE. NUMBER TWO IS OUR COMPLETE PORTFOLIO.
ONE OF THE KEY AREAS THAT I THINK THE MARKET DOESN'T UNDERSTAND IS WE DON'T JUST SHIP SERVERS. IN MANY CASES WE RUN IT AS A PART OF OUR PLATFORM. THAT INCLUDES AN ENORMOUS AMOUNT OF SERVICES.
THAT'S WHY YOU SEE HP GREENLAKE GROWING RAPIDLY AND THE FASTEST GROWING AREA THIS PAST QUARTER WHICH GREW 39% YEAR-OVER-YEAR IS ACTUALLY AI. LAST BUT NOT LEAST IS THE ONGOING MANAGEMENT OF COST ACROSS THE COMPANY AND WE ARE NOW DEPLOYING AI IN OUR COMPANY. CAROLINE: YOU ARE DEPLOYING WITHIN YOUR COMPANY, BUT WHO IS COMING TO YOU? WHO ARE THE CLIENTS. I'M SURPRISED WHERE ELSE YOU
HAVE BEEN FOCUSING IF IT'S NOT ENTERPRISE? >> I THINK ABOUT AI IN THREE UNIQUE SEGMENTS. OBVIOUSLY THE MODEL BUILDERS, THE PEOPLE WHO ARE BUILDING THE MODELS AND NEED AN ENORMOUS AMOUNT TO TRAIN THE MODELS. HUNDREDS OF BILLIONS OF PARAMETERS. AND IN THAT WE ALSO MENTIONED YESTERDAY THAT MICROSOFT IS EXTENDING THE AZURE AI CLOUD TO HP INFRASTRUCTURE.
AND TO ONE OF THE CLIENTS JUST HAVING TO BE OPENAI. THAT'S A GREAT EXAMPLE BUT THERE'S ALSO SERVICE PROVIDERS LIKE SCALE WELL IN FRANCE AND MANY OTHERS WE SUPPORT. THAT'S ONE SEGMENT AND THAT'S WHAT A LOT OF THE DEMAND HAS BEEN. THE SECOND SEGMENT WHICH IS GROWING NOW IS SOVEREIGN CLOUD IN THE 30'S ENTERPRISE. ED: THERE IS AN INTERESTING TENSION HAPPENING IN YOUR INDUSTRY AND WITH YOUR PARTNERS. LISA SUE AND AND HAVE THE GPS AND CPUS BUT THEY WANT TO BE SYSTEMS VENDORS. SO IN THE CONTEXT OF A SERVER
THERE IS NOT A LOT LEFT OVER AFTER THAT BUT THEY DO NOT HAVE THE EXPERIENCE IN THE SALES CHANNELS THAT YOU GUYS OPERATE IN. BUSINESSES BIG AND SMALL, HOW ARE YOU ABLE TO CONVINCE YOUR INVESTORS YOU CAN ALL GROW TOGETHER. WHEN YOU KNOW THAT THE BIGGEST PARTNERS ON THE TECH SIDE WANT TO DO MORE STUFF THEMSELVES.
>> WE HAVE THE CASE OF EXPERIENCE IN DOING SO. I THINK IT'S MULTIPLE THINGS. OBVIOUSLY WE WORK WITH THEM TO MAKE SURE THAT THEIR IP DELIVERS A BETTER EXPERIENCE.
SO WE CO-ENGINEER A LOT OF THINGS. YOU'LL SEE WITH NVIDIA IN PARTICULAR WE DISCOVERED IN LAS VEGAS. AN ENORMOUS AMOUNT OF INNOVATION WE ARE BRINGING TO THE MARKET SO I HOPE YOU CAN JOIN US AND TAKE A LOOK AT THAT.
WITH AND WE HAVE A LONG-STANDING RELATIONSHIP. SOME OF THE COMPUTERS WENT WITH THE DEPARTMENT OF ENERGY IS BEING BUILT TOGETHER WITH AND. WE ARE PLEASED INFRASTRUCTURAL EXPERTISE SO IT'S NOT JUST THE SILICON BUILT IN THE SERVER. WE WERE CHATTING BEFORE IT'S ACTUALLY ABOUT THE WHOLE INFRASTRUCTURE. WE HAVE UNIQUE IP WHAT IT COMES DOWN TO MIX COOLING, THAT'S VERY HARD TO DO. YOU NEED THE MANUFACTURING CAPABILITY SO THEY OF ONE OF THE LARGEST MANUFACTURING FULL PRINT OF THE WORLD AS YOU FOLLOW THE ROADMAP THAT WILL BE NECESSARY AND THAT'S ON THE LIST AS A SERVICES PIECE. THIS WORK PRIORS A LOT OF
MAINTENANCE AND TLC. HP KNOWS HOW TO DO THAT TO SCALE. CAROLINE: ANTONIO JENSEN WILL BE ON STAGE WITH YOU AND GIVE YOU THE PUBLIC ENDORSEMENT? >> I THINK WHAT'S CAN HAPPEN IS JENSEN AND I ARE SUPER EXCITED TO ANNOUNCE SOLUTIONS TOGETHER THAT WILL ANNOUNCE THE ADOPTION OF THESE AMAZING TECHNOLOGY AND OBVIOUSLY THAT'S WHERE THE TWO COMPANIES COME TOGETHER, BUT ALSO DOING THAT IN A SPECTACULAR WAY WHICH WILL BE AT THE SPHERE. SO THAT SHOWCASES CAN BE VERY ENGAGING AND I THINK THE FIRST OF A KIND. CAROLINE: ED HAS BEEN SPENDING TIME IN
LAS VEGAS. ANTONIO NERI, GREAT TO HAVE YOU WITH US TODAY. COMING UP, WE WILL TALK ABOUT THE PRIVATE SIDE OF INVESTMENT RIGHT NOW.
PARTNER AT SORENSON CAPITAL NEXT, THIS IS BLOOMBERG TECHNOLOGY. FIND IT ON THE TERMINAL, APPLE, SPOTIFY AND I HEART. THIS IS BLOOMBERG. >> THE BIGGEST THING WE WILL SEE IN OUR LIFETIME FROM TODAY WILL BE THE PICKS AND SHOVELS DRIVING AI AND THAT SURROUND THE DATA CENTER SPACE. WE THINK A HYPER SCALES WILL BE THE BIGGEST WINNER IN AIN DATA STORAGE WILL DO FOR THE WORLD.
>> ICONIC FOUNDING PARTNER SPEAKING WITH DAVID RUBENSTEIN ON THE BLOOMBERG WEALTH EPISODE ABOUT AI INVESTING OPPORTUNITIES. LET'S DIG INTO OUR AI IS CHANGING THE LANDSCAPE FOR VC INVESTING GRADE -- INVESTING. I IMAGINE EVEN IN THE FOCUS AREA YOU HAVE BEEN CYBER IT'S ALL ABOUT GENERATIVE AI. KEN: THANKS FOR HAVING ME. AS YOU SAID BEFORE THE BREAK ON A PARTNER HERE AT SORENSON CAPITAL. WE ARE IN AN EARLY AND GROWTH STAGE VENTURE CAPITAL FIRM WITH OVER $1.5 BILLION IN ASSETS UNDER MANAGEMENT. WE FOCUS ON INVESTING IN
ENTERPRISE SOFTWARE AND I FOCUS ON THE CYBERSECURITY PART OF THAT. SO AI IS A BIG THING LIKE YOU MENTIONED. CERTAINLY IN SECURITY AI IS IMPORTANT ASPECT. THERE'S TWO AREAS WHERE IT CAN BE APPLIED TO SECURITY. THE FIRST IS AI NEEDS TO BE
USED INSIDE OF SECURITY PRODUCTS. SO IMAGINE TODAY MOST ENTERPRISES HAVE A SECURITY OPERATION CENTER. WHAT HAPPENS IS YOU HAVE A NETWORK SECURITY PERSON, A HOST SECURITY PERSON, A CLOUD SECURITY PERSON.
ALL THESE PEOPLE NEED TO WORK CLOSELY TOGETHER TO STOP ATTACKS. AI CAN BE USED TO REALLY LEVERAGE THE INFORMATION AND MAKE IT A LOT QUICKER TO RESPOND TO THESE ALERTS. ED: THE THING I STRUGGLE TO UNDERSTAND FOR A FEW WEEKS NOW FOR VENTURE CAPITALISTS TO INVEST IN THE SORT OF CYBERSECURITY SPACE AT THE EARLY STAGE IS WHAT'S MISSING OUT THERE. THERE'S SO MANY CYBERSECURITY COMPANIES. WE TALKED ABOUT CROWD STRIKE
DOING WELL IN AN ENVIRONMENT WHERE CYBER SPENDING IS DOWN SO WHAT IS IT SPECIFICALLY YOU ARE LOOKING FOR? KEN: THERE ARE TWO THESES WE HAVE AT SORENSON IN TERMS OF INVESTING IN SECURITY STARTUPS. ONE IS WE LIKE TO INVEST IN WHERE THAT'S GOING. WE LIKE TO INVEST IN COMPANIES THAT SEE BETTER. SO LET'S TALK ABOUT WHERE THIS IS GOING.
TWO RECENT EXITS IN OUR PORTFOLIO, THE FIRST ONE INVENTED THE SECURE BROWSER THAT WAS ACQUIRED FOR ABOUT 600 TO $5 MILLION. THE RECENT THIS -- THE REASON IS WHAT WAS IMPORTANT WAS BECAUSE WORK WAS CHANGING INSIDE, EMPLOYEES WERE ACCESSING THE DATA THROUGH THE BROWSER AND THE BROWSER WAS UNSAFE. THIS IS A HUGE PROBLEM WHEN YOU'RE WORKING ON UNMANAGED DEVICES LIKE YOUR TABLET OR PERSONAL DEVICE. THAT IS AN AREA THAT IS BRAND-NEW, IT'S IN THE SPACE ENDED REALLY FIT WELL WITH PALO ALTO BECAUSE THEY ARE REALLY GOOD ON THEIR SECURITY SOLUTION. CAROLINE: YOU'VE HAD THESE TWO, DAY EXITS FREIGHT IS THAT ALL IT'S ABOUT TERMS OF EXITS GIVEN WHERE THE PUBLIC MARKETS ARE THE MOMENT.
KEN: WHAT WE TRY TO DO HERE IS BUILD COMPANIES THAT ARE LONG-TERM SUSTAINABLE COMPANIES AND IF YOU'RE SOLVING A PROBLEM YOU WILL GET MANY ACQUISITION OFFERS ALONG THE WAY. IN THIS CASE THE ACQUISITION OFFERS WERE REALLY GOOD WHEN THEY FIT. TO YOUR QUESTION ABOUT AIRGAP WHAT AIRGAP DOES IS IT WAS ACQUIRED IN APRIL AND THE FOUNDERS SAW THAT UNFORTUNATELY ENTERPRISE WAS GOING TO GET BREACHED. WE SAW THAT WITH TIKTOK. WHEN YOU GET BREACHED THAT IS A PROBLEM, BUT THE BIGGEST PROBLEM IS ONE THAT RANSOMWARE OR MALWARE MOVES FROM SYSTEM TO SYSTEM INSIDE THE ENTERPRISE. THAT'S CALLED EAST-WEST TRAFFIC.
THIS WAS A REALLY GOOD FIT BECAUSE Z-SCORE IS REALLY GOOD AT NORTH-SOUTH TRAFFIC MEANING PROTECTING TRAFFIC COMING FROM OUTSIDE THE ENTERPRISE INTO THE ENTERPRISE. THERE WILL ALWAYS BE THE SECURITY GAPS IN PLATFORM COMPANIES THAT OUR STARTUPS ARE WELL-POSITIONED TO FILL. WE CAN FILL THAT THROUGH PARTNERSHIPS OR IN SOME CASES ACQUISITIONS AND IN SOME CASES IPO'S.
AS YOU KNOW, TO GO PUBLIC YOU NEED TO HAVE REALLY GOOD REPEATABLE EARNINGS AND REVENUE GROWTH. ED: SORENSON CAPITAL PARTNER KEN ELEFANT. A CHANGING OF THE GUARDED ALPHABET. THE COMPANY FINALLY ANNOUNCING ITS NEW CFO. WHO THAT PERSON'S NEXT, THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: IT IS -- ED: IT IS TIME FOR TALKING TECH.
EBAY DROPPING AMERICAN EXPRESS CARDS DUE TO "UNACCEPTABLY HIGH FEES. STATING THE FEES WERE COMPARABLE TO ITS COMPETITORS, OF THE CHANGES THAT TAKE EFFECT AUGUST 17. NXP SEMICONDUCTORS TEAMING UP WITH A COMPANY PARTLY OWNED BY TSMC TO BUILD OUT A CHIP PLANT IN SINGAPORE. THE MOVE COMES AS CUSTOMERS DEMAND DIVERSIFICATION AMID GEOPOLITICAL TENSIONS, CONSTRUCTION IS SET TO BEGIN IN THE SECOND HALF OF THIS YEAR WITH PRODUCTION STARTING IN 2027 AND ALPHABET HAS NAMED ASHKENAZI AS ITS NEW CFO.
THEY SPENT 23 YEARS AT ELI LILLY WHERE SHE SERVED AS CFO AND EXECUTIVE BP FOR THE DRUGMAKER SINCE 21. SHE REPLACES RUTH WHO ANNOUNCED HER DEPARTURE LAST YEAR. THE NEW ROLE WILL BE EFFECTIVE JULY 31. CAROLINE: LET'S GET MORE, GIVING THE CONTEXT OF THE NEWS. IT WAS A LONG BATON HANDING OVER THAT WAS THE PROCESS.
>> THIS TOOK QUITE A WHILE, ALMOST A YEAR. RUTH ANNOUNCED SHE WAS STEPPING DOWN IN JULY OF 2023. WE HAVE BEEN WAITING FOR HER REPLACEMENT AND IT'S BEEN ANNOUNCED. I THINK THIS IS A GREAT PICK FOR ALPHABET. IT GIVES THEM SOME CREDIBILITY AND BOOSTS THEM PARTICULARLY IN THE HEALTH CARE INDUSTRY WHERE THERE ARE MANY GENERATIVE AI APPLICATIONS THAT ARE POSSIBLE. CAROLINE: SHE'S COMING FROM ELI LILLY, THE APPLICATIONS FROM HEALTH CARE, WHAT ELSE TO SHE BRING TO THE TABLE FROM ELI LILLY. THERE MUST BE AN INVESTMENT
IDEAL HERE AS WELL. DAVEY: ALPHABET HAS REALLY SHIFTED ITS FOCUS AND TURNED TO GENERATIVE AI AS ITS MISSION AND THE THING IT IS POURING ITS INVESTMENT INTO. AS IT'S DONE THAT IT HAS ALSO LET SOME OF ITS MOONSHOT HEALTH CARE EFFORTS LANGUISH AND I THINK THAT SHE CAN BRING SOME REVITALIZATION TO THOSE EFFORTS. SO WE WILL SEE HOW IT GOES. ED: AS YOU KNOW, EVERY QUARTER FOR THE LAST YEAR I GOT TO ASK RUTH WHEN THEY WOULD HAVE A NEW CFO AND EACH QUARTER SHE WOULD ALSO POINT OUT SHE IS DOING OTHER STUFF WHILE THEY ARE LOOKING FOR A NEW CFO SHE'S TECHNICALLY BEEN PRESIDENT AND CHIEF INVESTMENT OFFICER AND IN THAT TIME, ALPHABET HAS DONE WELL, WHAT WE KNOW ABOUT THE BIG PICTURE PLAN FOR HER AND WHAT SHE WILL BE FOCUSED ON OR WHERE SHE IS GOING? DAVEY: RUTH IS A PRETTY LEGENDARY FIGURE IN THE TECH INDUSTRY. SHE OVERSAW ALPHABETS RESTRUCTURING WHEN GOOGLE BLEW UP ITS CORPORATE STRUCTURE AND CREATED THESE TINY COMPANIES UNDER ALPHABET. SHE HAS ALSO GROWN THE COMPANY
IN ITS CLOUD AND U2 BUSINESSES IN PARTICULAR, THEY ARE A FORCE TO BE RECKONED WITH AT THIS POINT AND ALPHABET SAYS THEY WILL HAVE A COMBINED ANNUAL RUN RATE OF 100 BILLION BY THE END OF THIS YEAR. SHE HAS ALSO BEEN OVERSEEING THE OTHER BATS SECTOR OF THE COMPANY AND SORT OF PUSHING THE COMPANY TO SORT OF ENACT GREATER FISCAL RESPONSIBILITY SO I THINK WE WILL SEE MORE OF THAT FROM HER AND SHE WILL VERY LIKELY WORK HAND-IN-HAND WITH ASHKENAZI TO MAKE THE COMPANY MORE SUCCESSFUL. ED: FISCAL RESPONSIBILITY, DISCIPLINE BUT ALSO GIVE EVERYTHING THAT ALPHABET NEEDS ON THE AI SIDE WHICH WAS LARGELY DATA CENTERED GROWTH. MAYBE THAT'S AN AREA THEY DON'T KNOW AS WELL. THE GOOGLE CLOUD PORTION OF THE
BUSINESS. >> RUTH HAS PROVEN HERSELF THROUGH HER TRACK RECORD OF BEING ABLE TO SORT OF RESPONSIBLY ALLOCATE RESOURCES AND GENERATIVE AI IS AN INCREDIBLY EXPENSIVE ENDEAVOR. ALPHABET IS REALLY THE TOP TIER OF COMPANIES COMPETING FOR TALENT AND ALSO NEED TO CONTINUE TO INVEST RESOURCES INTO DATA CENTERS AND OTHER TECH INFRASTRUCTURE. I THINK WE WILL SEE SOME OF THAT FROM RUTH AS WELL. CAROLINE: I LOVE THE QUOTE FROM THE MIZUHO -- SAYING THIS IS PROBABLY ONE OF THE BEST GIGS.
I'M WONDERING, THERE ARE A LOT OF REALLY GREAT FEMALE CFOS IN THE TECH SECTOR BUT META, MICROSOFT. SO MANY OF THESE JUGGERNAUTS HAVE FEMALES IN THE FINANCE ROLE. DAVEY: IT'S A WELCOME DEVELOPMENT ESPECIALLY FOR AN INDUSTRY THAT IS STRUGGLED WITH DIVERSITY ISSUES AND HIGHLIGHTING TOP FEMALE LEADERS OVER MANY YEARS SO, I THINK THIS IS A PRETTY GOOD CHOICE FOR ALPHABET AND WE WILL SEE HOW IT GOES, SHE HAS BIG SHOES TO FILL. >> AND THE SHOES REMAIN ON CAMPUS WHICH IS INTERESTING. THANK YOU FOR BREAKING THAT DOWNGRADE THAT DOES IT FURTHEST ADDITIONAL BLOOMBERG TECHNOLOGY. ED:
WHAT A SHOW, WHAT A MOMENT FOR BOEING AND FOR AMERICAN SPACE EXPLORATION. WE RECAP EVERYTHING ON THE POD FOR YOU KNOW WHERE TO FIND THE
2024-06-08 10:54
