Bumpy Week for Nvidia, Tesla, Billion Dollar Space Bet | Bloomberg Technology

>> THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. 10: LIVE FROM SAN FRANCISCO, I'M TIM STENOVEC, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP TODAY, ELON TRIES TO ALLEVIATE CONCERNS, TELLING STAFFERS TO HOLD ON TO THEIR STOCK AFTER IT PLUNGED 50% IN THREE MONTHS.

MACRON, UNDER PRESSURE. DISAPPOINTING MARGINS OVERSHADOWING AN IMPRESSIVE SET OF QUARTERLY RESULTS. NVIDIA BETS ON AMERICA, NEW PLANS TO INVEST BILLIONS ON U.S. MANUFACTURING. ALL OF THAT AND MORE COMING UP

OVER THE NEXT HOUR. FIRST UP, A CHECK ON THE MARKETS. ENDING THE WEEK ON A DOWN NOTE, 75% OF THE NAMES IN THE NASDAQ 100 ARE LOWER THIS MORNING.

LOOK AT THIS, DOWN .3%, OFF THE WORST LEVELS OF THE DAY. IF THE INDEX CLOSES LOWER, IT WILL BE FIVE WEEKS OF DECLINES, THE LONGEST WEEKLY LOSING STREAK GOING BACK TO MAY OF 2022. SEEING WHAT'S GOING ON IN EUROPE, IT IS GETTING HIT TODAY AFTER TRAVEL AND LEISURE STOCKS WERE AMONG THE BIGGEST LAGGARDS. HEATHROW AIRPORT CLOSURE, THE AIRPORT SET TO REMAIN CLOSED UNTIL 11:59 P.M. TONIGHT LOCAL TIME. LET'S TALK NVIDIA, ON PACE TO END THE WEEK DOWN MORE THAN 4.5% IF WE SEE MORE LOSSES

TODAY. DOWN 4% AS WE SPEAK, A BIT MORE BUYING IN THE LAST FEW MINUTES. JENSEN HUANG'S SPEECH ON TUESDAY FAILED TO INJECT THE KIND OF OPTIMISM NEEDED TO GET THE AI TRADE BACK ON TRACK. LOOK AT SHARES OF TESLA OVER

THE LAST FIVE DAYS, DOWN THREE POINT 5%. YESTERDAY ELON MUSK TRIED TO REASSURE EMPLOYEES AND WHAT HE REFERRED TO AS A BIT OF STORMY WEATHER. HE URGED EMPLOYEES TO HANG ONTO THEIR STOCK, CALLED CATHIE WOOD AS AN EXAMPLE OF SOMEONE WHO STILL BELIEVED IN THE STOCK, SAYING THAT PEOPLE LIKE HER SEE THE FUTURE, I'M SAYING HANG ONTO THE STOCK. TALKING MORE ABOUT TESLA, OVER IN EUROPE WE ARE JOINED BY CRAIG TRUDELL. WHAT DID YOU MAKE OF WHAT WE HEARD FROM HIM LATE YESTERDAY? WHAT WAS THE TONE HE WAS TRYING TO COMMUNICATE TO HIS EMPLOYEES? CRAIG: IT WAS HIGHLY UNUSUAL. OF COURSE, OVER THE YEARS WE HAVE HEARD FROM MUSK THROUGH MEMOS HE HAS SENT OUT TO STAFF THAT TEND TO LEAK SOON AFTER, BUT THIS WAS, YOU KNOW, IN THE MIDDLE OF A QUARTER. NOT A PRODUCT EVENT OR ANYTHING

LIKE THAT. A SPUR OF THE MOMENT ALL HANDS, IT SEEMED TO BE A SORT OF -- REASSURE THE EMPLOYEES AND IN THE COURSE OF DOING SO, REASSURE THE MARKETS THAT, YOU KNOW, YES, IN HIS WORDS TESLA'S ARE ON FIRE AND THAT KEEPS GETTING SHOWN ON TELEVISION, BUT ESSENTIALLY DON'T WORRY, EVERYTHING WILL BE FINE, THE FUTURE WILL BE BRIGHT. TIM: SPEAKING OF THE FUTURE, HE BROUGHT UP THE IDEA AGAIN THAT AUTONOMOUS DRIVING FOR TESLA IS AROUND THE CORNER, SOMETHING HE HAS BEEN TALKING ABOUT FOR CLOSE TO 10 YEARS. HOW CLOSE IS HE THIS TIME? CRAIG: THAT IS THE KEY QUESTION FOR TESLA AND ITS STOCK. THIS IS SOMETHING HE HAS BEEN TALKING ABOUT SINCE 2016. HE HIMSELF HAS REFERRED TO THE IDEA THAT, YOU KNOW, HE'S THE BOY WHO CRIED WOLF AT THIS POINT.

HE HAS MADE THIS PREDICTION THAT AT SOME POINT THEY WILL HAVE A SOFTWARE UPDATE WHERE YOUR TESLA WILL BE ABLE TO DRIVE ITSELF AND IT WILL BE USEFUL EVEN WHEN YOU ARE NOT IN IT. PERHAPS GO AND FETCH PERSON -- PEOPLE THE WAY AND HOOVER WOULD. THAT HASN'T HAPPENED. THERE ARE A LOT OF REASONS TO BE SKEPTICAL THAT THAT FUTURE WILL ARRIVE WITH THE HARDWARE SET THAT HE HAS PUT IN HIS VEHICLES. YOU CAN BOTH BE IMPRESSED BY THE FACT THAT HIS SYSTEMS ARE QUITE CAPABLE FOR ASSISTING DRIVERS, BUT THEY STILL NEED THE HUMAN IN THE LOOP.

UNTIL AND UNLESS THAT CHANGES, YOU ARE GOING TO HAVE THIS, YOU KNOW, THIS REAL REASON TO SECOND-GUESS WHY THIS COMPANY IS VALUED AS RICHLY AS IT IS. TIM: TESLA SHARES, HIGHER BY 2% TODAY, DOWN ON THE WEEK. CRAIG TRUDELL, HAVE A GOOD WEEKEND. LET'S TALK ABOUT ANOTHER

COMPANY THAT HAS HAD QUITE A WEEK, NVIDIA. MANDEEP SINGH JOINS US NOW. AS WE REFLECT ON THE WEEK THAT WAS NVIDIA GT C, WHY DID THIS WEEK FAILED TO REALLY CAPTURE THE ATTENTION AND EXCITEMENT OF INVESTORS LIKE A PREVIOUS GT SEE EVENT? MANDEEP: FROM A PRODUCT ROADMAP PERSPECTIVE, THEY DID EVERYTHING THEY COULD HAVE, YOU KNOW, IN TERMS OF SHOWING THE NEXT THREE YEARS IN WHAT IT WOULD MEAN FOR NVIDIA.

EVEN ON THE SUPPLY SIDE, IT SEEMS LIKE YOU KNOW, IT WILL REMAIN ELASTIC AROUND EXHILARATED -- ACCELERATED COMPUTING CHIPS. THE DEMAND SIDE IS STILL A QUESTION. HE TALKED ABOUT INFLUENCING USING HUNDRED TIMES MORE COMPUTE THAN PRIOR INFERENCING. REASONING AND THAT DEEPSEEK APPROACH IS WHAT'S DRIVING THAT COMPUTE. BUT IT REMAINS TO BE SEEN WHETHER THEY CAN OFFSET THE PLATFORM OF PRETRAINING, WHICH EVERYONE SEEMS TO AGREE ON AT THIS POINT.

AND YOU KNOW, THERE IS ALWAYS THAT LURKING COMPETITION FROM YOUR HYPERSCALERS DEVELOPING THEIR OWN A SIX, EVEN THOUGH HE DOWNPLAYED THE COMPETITION. INTO THE BLACKWELL, THE RUBIN. LOOK, IF YOU ARE A CUSTOMER OF NVIDIA, YOU ARE ASKING YOURSELF IF BLACKWELL IS 30 TIMES BETTER, DO I APPRECIATE ALL THE HOT WHERE TIPS I HAVE NOW? THAT WILL COME UP AT SOME POINT IN TERMS OF INCREASING EXPENSES. TIM: RAISING THE QUESTION ABOUT THE NEXT CATALYST. IF THIS DIDN'T EXCITE INVESTORS, THEN WHAT ARE THEY LOOKING TOWARD TO GET MORE INFORMATION ABOUT WHAT COULD MOVE THE STOCK HIGHER? MANDEEP: I THINK THAT THE SINGLE BIGGEST THING RIGHT NOW IS HOW WOULD THE NVIDIA GROSS MARGIN LOOK IN THE SECOND HALF? THERE IS THAT CONCERN THAT, YOU KNOW, GIVEN THAT NVIDIA IS PACKAGING TWO GPU CHIPS NOW IN THEIR BLACKWELL SERIES, HOW DOES THAT IMPACT GROSS MARGINS? THEY HAVE ALREADY BEEN TRENDING DOWN IN THAT BRAND. IT HAD BEEN 75%, NOW CLOSER TO 70%. CLEARLY, THAT GROSS MARGIN RAMP IS CRITICAL IN TERMS OF THE NEXT SERIES THAT NVIDIA IS GOING TO PRODUCE.

THAT WILL BE THE KEY DETERMINANT OF WHERE THE STOCK IS HEADED NEXT. TIM: MANDEEP SINGH, ALWAYS GOOD TO SEE YOU. THANKS FOR JOINING US. LET'S BREAK. -- BREAK THAT WE CAN MARKETS. NANCY CURTIN IS A GLOBAL CHIEF INVESTMENT OFFICER WHO JOINS US NOW. WE ARE STILL TALKING ABOUT A CORRECTION WHEN IT COMES TO TECH STOCKS. THE NASDAQ 100 COULD CLOSE DOWN FOR A FIFTH WEEK IN A ROW, THE LONGEST LOSING STREAK GOING BACK TO MAY OF 2022.

IS THIS CORRECTION A SIGN OF MORE WEAKNESS TO COME? OR DO YOU THINK WE ARE AT THE BOTTOM? NANCY: I THINK THAT NEAR-TERM FORECASTING IS NEARLY IMPOSSIBLE, BUT WE HAVE A PRETTY BIG D DAY DEADLINE AHEAD, APRIL 2. UNTIL WE KNOW WHAT THE TARIFFS ARE, THE MAGNITUDE, THE RECIPROCAL, ETC., MARKETS ARE GOING TO BE PRETTY VOLATILE. LOOK, WE THINK THAT THIS IS A CORRECTION AND NOT THE BEGINNING OF A BEAR MARKET, BECAUSE WE DON'T SEE RECESSION. THAT'S AN IMPORTANT THING TO

KEEP IN MIND. WE WERE OVERDUE CORRECTION. CORRECTIONS NORMALLY RESOLVE THEMSELVES. MARKETS HAVE HUGE LEVELS OF PESSIMISM THAT I FIND ENCOURAGING. WE COULD HAVE SOME VOLATILITY HERE, AS YOU MENTIONED, FOR AT LEAST ANOTHER 11 DAYS. TIM: WHAT MAKES YOU SO SURE THAT WE ARE NOT GOING TO SEE A RECESSION? WE KNOW THE CONSUMER POWERS THE ECONOMY AND WE HAVE GOTTEN MIXED CONSUMER DATA INTO THE EARLY PART OF LAST WEEK WHEN IT CAME TO AIRLINES.

WHAT MAKES YOU SO SURE WE ARE NOT HEADED TOWARDS RECESSION? NANCY: FIRST OF ALL, THE DICHOTOMY BETWEEN THE HARD DATA AND SOFT DATA. SOFT DATA HAS BEEN WEAKER. CONSUMER SENTIMENT, INFLATION EXPECTATIONS HAVE RISEN. WE DO THINK THAT THE ECONOMY IS SLOWING. IT WILL CERTAINLY PROBABLY BE NEGATIVE IN THE FIRST QUARTER. WE'D HAD ALL OF THAT BUYING OF IMPORTS PROACTIVELY BY COMPANIES , MEANING THE NET TRADE WILL BE A NEGATIVE. EXPECT THE FIRST QUARTER TO BE LOWER, EXPECT OVERALL GDP FOR 2025 TO BE WEAKER THAN EXPECTATIONS.

BUT LET'S GET BACK TO THE HARD DATA. JOBS, PERSONAL INCOMES, THE HOUSEHOLD BALANCE SHEET ANNOUNCED BY THE FED TWO WEEKS AGO, ALL STILL REMAIN STRONG. LOOK, WE HAVEN'T TALKED ABOUT THE FACT THAT IT COULD WELL BE THAT INVESTMENT SURPRISES -- LOOK, YOU SAW NVIDIA COMMITTING TO 500 BILLION OVER THE NEXT FOUR YEARS, THAT COMES ON TOP OF APPLE, THAT COMES ON TOP OF TSMC.

THOSE THREE COMPANIES TOGETHER, YOU ARE LOOKING AT CLOSE TO 1.4 TRILLION IN EXPENDITURE OVER THE NEXT FOUR YEARS. BACK INTO THE UNITED STATES, NOT TO MENTION THE FUNDING BILL MAKING ITS WAY THROUGH CONGRESS, WHICH MIGHT HAVE SOME GOODIES, LIKE 100% EXPENSING OF R&D, DEPRECIATION, ETC.

OUR DATER -- DATA IS STILL SOLID AND WE THINK SOME THINGS WILL STILL COME ON THE GOODIES SIDE OF TRUMP THAT ARE STILL TO COME. TIM: LET'S HEAR A LITTLE BIT ABOUT TECH, SPECIFICALLY THE MAG SEVEN. META-PLATFORMS IS ACTUALLY HIGHER ON THE YEAR FOR NOW, BUT FOR THE FIRST TIME THIS YEAR IT DIPPED INTO NEGATIVE TERRITORY FOR THE YEAR.

OTHER THAN THAT, SIX OF THE SEVEN MAG SEVEN ARE NEGATIVE ON THE YEAR. DO YOU SEE A TURNAROUND WITH THE MAG SEVEN? NANCY: WE DON'T BUY STOCKS, WE BUY MANAGERS. OUR MANAGERS HAVE BEEN UNDERWEIGHT. UNDERWEIGHT THE MAG SEVEN.

THAT HAS BEEN A GOOD POSITIONING FOR US THIS YEAR. THEY'VE DONE MUCH BETTER JOB COMMUNICATING HOW THEY EXPECT ALL OF THIS AI SPEND TO RESULT IN BETTER METRICS, ADVERTISING METRICS, ENGAGEMENT. THE OTHER COMPANIES HAVE BEEN A BIT MORE VAGUE. THAT IS WHY INVESTORS ARE CONCERNED, AT LEAST FOR THE FOUR HORSEMEN, SPENDING 320 BILLION DOLLARS PLUS ON VARIOUS FORMS OF AI INFRASTRUCTURE, HOW IT WILL RESULT IN RETURNS. OUR VIEW? LET'S GO TO THE SPENDING BENEFICIARY. WE LIKE DIGITAL INFRASTRUCTURE, WE LIKE INFRASTRUCTURE GENERALLY , BECAUSE THAT IS WHERE ALL THE SPENDING IS GOING.

WE LIKE POWER, ENERGY, ON ENSURING PRODUCTION. INFRASTRUCTURE IS SOMETHING WE THINK OF AS LESS CORRELATED TO EQUITY MARKETS, HAS A VERY GOOD COUNTERPARTIES, AND IS A PART OF WHAT I CALL THIS HUGE SPENDING SURGE THAT IS LIKELY TO CONTINUE. MAG SEVEN UNDERWEIGHT, WE THINK THAT'S THE RIGHT POSITIONING, BUT WE WANT TO BE WITH SPENDING BENEFICIARIES. TIM: WHAT IS YOUR VIEW ON GENAI ADOPTION MOVING TO OTHER PARTS OF THE MARKET? SO FAR THE BENEFICIARIES HAVE LARGELY BEEN THE HYPERSCALERS, THE CHIP MANUFACTURERS, THE COMPANIES WE TALK ABOUT EACH AND EVERY DAY. WHEN DOES THAT MOVE BEYOND THESE COMPANIES? NANCY: OUR THEME HAS BEEN A BROADENING MARKET PARTICIPATION AND BY THE WAY, WE ARE SEEING AT THIS YEAR. 97% OF THE DECLINE IS COMING FROM THE MAG SEVEN. A BUNCH OF SECTORS ARE IN

POSITIVE TERRITORY. AND OF COURSE, EUROPEAN AND CHINESE MARKETS ARE IN POSITIVE TERRITORY AS WELL. LOOKING FORWARD, WE THINK THAT BROADENING COULD BE OPERATIVE AND WE THINK GENAI IS EARLY INNINGS, RIGHT? COMPUTE POWER IS GOING TO COME DOWN. THESE LARGE LANGUAGE MODELS WILL COME DOWN ON THE COSTS, THE PARADOX THAT LEADS TO GREATER ADOPTION. THAT HASN'T BEEN PRICED IN, THE

PROFITABILITY AND PRODUCTIVITY ENHANCEMENTS ACROSS LARGE SECTIONS OF THE GLOBAL ECONOMY FROM GENAI IS STILL TO COME IN THAT ISN'T REALLY PRICED IN. AGAIN, THAT'S NOT A TOMORROW THING, BUT WE DO THINK THAT IT IS A POSITIVE IN TERMS OF FUNDING IN THE MEDIUM-TERM. AGAIN, OUR CLIENTS ARE LONGER-TERM AND BEST -- INVESTORS, WE DON'T TRY TO PLAY THE MARKETS WITH A DAY TO DAY MENTALITY. TIM: NANCY, THANKS FOR JOINING US. HAVE A GREAT WEEKEND.

COMING UP, MICRON DISAPPOINTS INVESTORS WITH A WEAK MARGIN OUTLOOK. MORE ON THE CHIPMAKER, AFTER THIS. SHARES DOWN BY 8%. THIS IS BLOOMBERG. ♪ TIM: SHARES OF MICRON ARE FALLING TODAY AFTER THE MEMORY CHIPMAKER SAID MARGINS WOULD MISS ANALYST ESTIMATES THIS QUARTER. SHARES ARE DOWN AS WE SPEAK.

SOURING INVESTOR SENTIMENT DESPITE STRONG SALES AND PROFITS. FOR MORE, THE NEW STREET RESEARCH HEAD OF TECH INFRASTRUCTURE, PETER FARRAGUT, JOINS US. WONDERING ABOUT THIS MARGIN MISS. WHY DID ANALYSTS GET IT SO LONG AND WHY DID MICRON MISS? WHAT HAPPENED? PETER: YOU HAVE TO LOOK AT IT IN THE CONTEXT OF ANALYSTS, FINANCIAL ANALYSTS AND THE PERSPECTIVE OF MANAGEMENT. FROM THAT PERSPECTIVE, IT HAD A FANTASTIC RUN.

ALL OF THOSE STOCKS EXPOSED TO AI, MICRON BEHAVED TO THE BEST WITHIN A FEW WEEKS. EVEN YEAR TO DATE. THAT KIND OF SITUATION ALWAYS CALLS FOR A BIT OF A POSE IN THE OUTPERFORMANCE. WE DO THINK THAT MEMORY IS GOING TO OUTPERFORM THE AI WORLD, THAT IS THE PART OF THE AI CHIP THAT IS GROWING THE FASTEST. SO, WHEN YOU GET MORE DEMAND, MEMORY MARGIN SHOULD EXPAND. IF YOU DON'T GET IT IMMEDIATELY, THE STOCK RUNNING

INTO THE NUMBERS EXPECTS THAT. DOES THAT MEAN THERE IS A CHANGE HAPPENING? NO. IF YOU LOOK AT IT FROM THE PERSPECTIVE OF MANAGEMENT, IT'S INTERESTING, AS A CEO OF MICRON, YOU DON'T WANT TO OVERWHELM THE INVESTOR ON THE MARGINS FOR TOO MANY REASONS. DON'T SET THE EXPECTATIONS TOO

HIGH, AVOID SITUATIONS LIKE TODAY. SECOND, YOU DON'T WANT TO BRIBE ABOUT MARGIN EXPANDING. YOUR PRICING IS GOING UP. TIM:

TALKING BIG PICTURE A BIT, HOW WOULD YOU CHARACTERIZE MICRON STACKING UP TO COMPETITION WHEN IT COMES TO HIGH-BANDWIDTH MEMORY? PETER: IT WILL BE THE LARGEST SEGMENT OF MEMORY THIS YEAR AND IT BARELY EXISTED THREE YEARS AGO. FROM A TECHNOLOGICAL STANDPOINT AT THE MOMENT, MICRON IS IN THE LEAD POSITION FOR HYBRID MEMORY. THEY ARE COMING UP IN THE MARKET THE EARLIEST WITH THE LATEST GENERATION OF THESE CHIPS.

SAMSUNG IS RUNNING A BIT BEHIND, STRUGGLING A BIT WITH PRODUCTION, BUT THEY WILL EVENTUALLY CATCH UP. WHAT YOU HAVE TO KEEP IN MIND AT THE END OF THE DAY IS THAT THERE ARE ONLY THREE COME -- THREE COMPANIES WITH THE TECHNOLOGY AND EXPERIENCE REQUIRED TO BE ABLE TO MANUFACTURE THESE TRIPS -- THESE CHIPS. WHAT MATTERS IS IF YOU LOOK AT THE GP USE LARGELY DEPLOYED FROM NVIDIA, IT HAS 90 TERABYTES OF HBM.

THE ULTRA ROLLING OVER INTO 27 IS GOING TO HAVE ONE TERABYTE, 10 TIMES MORE. THAT'S WHAT THEY ARE FACING. TIM: WHAT WOULD YOU SAY WHEN YOU LOOK OUT ACROSS THE YEAR AND INTO NEXT YEAR, THE CYCLE LOOKS LIKE? THE TREND LOOKS LIKE? WHEN IT COMES TO PCS AND SMART PHONES, IS THERE STILL A CONCERN ABOUT WEAKNESS? PETER: GREAT QUESTION. I'M ACTUALLY VERY CAUTIOUS, VERY BEARISH. PC SMARTPHONE DEMAND IS NOT THERE AND AI ISN'T GOING TO TRIGGER THE HARDWARE REFRESH CYCLE. PEOPLE AREN'T GOING TO BE GETTING A NEW PHONE OR LAPTOP TO USE AI. THEY WILL START USING AI FIRST

AND THEN AI WILL PUSH THE SPECIFICATION REQUIREMENTS OF YOUR DEVICE OVER TIME. I'M NOT VERY BULLISH ON THAT FRONT. AT THE SAME TIME, WE ARE AT A POINT IN THE CYCLE THAT IS A LOW POINT. WHEN I SAY I'M NOT BULLISH, IT MEANS I EXPECTED TO RECOVER AFTER BEING SLUGGISH AND SLOW.

THE STORY FOR MICRON IS THAT THIS BUSINESS RECOVERS VERY LITTLE, BUT THE DATA CENTER BUSINESS IS GOING THROUGH THE ROOF. TIM: ONLY 20 SECONDS LEFT FOR THIS ANSWER, BUT A BIT OF A PIVOT, WE JUST LEARNED TENCENT LAUNCHED UPGRADES OF A DEEPSEEK AI STYLE MODEL. ANY REACTION WHEN IT COMES TO WHAT CHINA IS DOING ON REASONING? PETER: AI IS JOINING THE PACKET, DOING THE SAME. EVERY TIME YOU CREATE A GREAT MODEL, YOU HAVE A LOT OF INNOVATION HAPPENING TO MAKE IT MORE EFFICIENT. THE U.S. IN THE WEST HAS BEEN DOING THAT FOR A DECADE, A COUPLE OF DECADES.

CHINA IS NO JOINING THE GROUP. THERE'S NOTHING REALLY IN DEEPSEEK, TENCENT, OR WHATEVER. TIM: ALL RIGHT, GOOD TO SEE YOU. THANKS FOR JOINING US. HAVE A WONDERFUL WEEKEND. BREAKING NEWS, BOEING WON A CONTRACT TO DESIGN AND BUILD THE NEXT GENERATION OF U.S.

FIGHTER JETS, BEATING OUT LOCKHEED MARTIN. THE CONTRACT IS A PART OF THE NEXT GENERATION AIR DOMINANCE PROGRAM TO DEVELOP A REPLACEMENT FOR THE F-22 RAPTOR. IT IS EXPECTED TO ENTER SERVICE IN THE 20 30'S.

THE AIR FORCE PLANS TO SPEND $20 BILLION ON R&D THROUGH 2020 NINE. SHARES OF LOCKHEED MARTIN, DOWN. SHARES OF BOEING, UP. COMING UP, TAKING TO THE SKIES WITH THE ISS, SET TO BE RETIRED TIM: A BILLIONAIRE WHO MADE HIS FORTUNE IN CRYPTOCURRENCY IS TURNING HIS ATTENTION TO SPACE. A START UP AIMING TO BUILD THE WORLD'S FIRST COMMERCIAL SPACE STATION. KYLE PORTER HAS THE DETAILS OF THIS STORY. KYLE, THIS IS A QUICKLY GROWING STARTUP, HIRING PEOPLE EVERY SINGLE DAY. THIS GUY HAS PUT HALF OF HIS

FORTUNE BEHIND THIS COMPANY. CAN HE PULL IT OFF? KYLE: THAT'S A GOOD, OPEN QUESTION. I WAS SKEPTICAL BEFORE. I CAME AWAY THINKING THEY HAD A DATE -- DECENT CHANCE AT THIS. THEY MIGHT BE ABLE TO REVOLUTIONIZE HOW THEY DO THESE PROJECTS. TIM: HOW? KIEL: MOST PEOPLE AT BIG INDUSTRIAL COMPANIES TEND TO THINK OF BUILDING A PRODUCT, GETTING INVESTORS, GROWING, IT HAPPENS OVER TIME, YOU REACH BENCHMARKS, AND A LOT OF THESE PROJECTS DON'T REACH THE FINISH LINE BECAUSE SOMETHING GOES WRONG DURING THE PROCESS. THE INVESTOR PULLS OUT AND YOU SELL WHAT'S LEFT. THAT'S TIME IS MONEY, MONEY IS

TIME. WHY NOT SPEND $500 MILLION PER YEAR, GET A PRODUCT TO MARKET, THEN HAVE YOUR REVENUE COME BACK IN? TIM: AS I READ YOUR STORY AND WATCH THE REALLY GOOD DOCUMENTARY ACCOMPANYING IT, I THOUGHT TO MYSELF -- TALK ABOUT PUTTING ALL OF YOUR EGGS IN ONE BASKET. IF THEY DON'T GET THIS CONTRACT, IS THAT IT? PETER: THEY HAVE -- KIEL: THEY HAVE HINTED THAT THERE MIGHT BE A MIDDLE EASTERN INVESTOR, BUT THEY ARE UPFRONT WAS SAYING THAT THIS IS THE BIG SWING AND IT COULD BE LIGHTS OUT FOR THE COMPANY IF IT DOESN'T HAPPEN. TIM: WHO IS THE TALENT THEY HAVE BROUGHT IN? KIEL: THEY BOUGHT A COMPANY CALLED LAUNCHER, HEADED BY MAX HOLT A COUPLE OF YEARS AGO. HE ALSO DIDN'T HAVE ANY REAL EXPERIENCE IN SPACE UNTIL HE STARTED LAUNCHER.

I DON'T THINK EITHER OF HIS ROCKETS LEACHED -- REACHED ORBIT. TIM: ALL RIGHT, THANKS FOR TAKING -- JOINING US. IT'S "THE BIG TAKE," CHECK OUT THE DOCUMENTARY, VERY COOL. COMING UP, APPLE MAKES SOME SERIOUS CHANGES.

WE WILL HAVE MUCH MORE ON THE BIG AI EXECUTIVE SHAKEUP. AERO -- A RARE MOVE IN THEIR EXECUTIVE RANKS. THAT IS COMING UP NEXT, ON "BLOOMBERG TECHNOLOGY." ♪ TIM: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M TIM STENOVEC, SAN FRANCISCO. GETTING A CHECK ON THEM ARE

CATS -- MARKETS -- THE MARKETS, ON TRACK FOR ITS FIFTH CONSECUTIVE WEEK OF DECLINES, DRIVEN BY A SELLOFF IN MEGA CAPS AND DISAPPOINTING OUTLOOKS FROM BELLWETHERS ACROSS DIFFERENT INDUSTRIES WITH INVESTORS QUESTIONING WHETHER THEIR ADVANTAGE IS ALREADY BAKED INTO SHARE PRICES AND MIGHT BE UNDER THREAT IF THE ECONOMY SLOWS. LOOKING AT THE INDIVIDUAL STOCKS MAKING MOVES, NVIDIA TODAY IS DOWN ONE POINT 9%. THE STOCK IS ON PACE TO END THE WEEK DOWN MORE THAN 4%. SHARES ARE DOWN MORE THAN 13% THIS YEAR. FROM A TECHNICAL PERSPECTIVE

THEY ARE ENTERING A DEATH CROSS PATTERN THAT LAST OCCURRED IN APRIL 2022, WHEN SHARES TUMBLED 30% OVER A COUPLE OF MONTHS. WE ARE KEEPING AN EYE ON THAT. WATCHING SHARES AT APPLE TODAY, DOWN .3%. THE COUPLE -- COMPANY IS

SHAKING UP EXECUTIVE RANKS AFTER GETTING AI EFFORTS BACK ON TRACK, AIMING TO RESCUE SIRI, WHICH HAS STRUGGLED TO THESE NEW FEATURES. THEY ARE FOCUSING ON ROCKWELL TO SOLVE THE PROBLEMS. FOR MORE ON THE PERSONNEL MOVES, DANA, WHAT'S GOING ON AT APPLE WHEN IT COMES TO AI? WHY ARE THEY SO FAR BEHIND? DANA: APPLE OVER PROMISED OVERPROMISE TO A WHOLE RAFT OF UPGRADES TO APPLE INTELLIGENCE AT THE DEVELOPER CONFERENCE JUNE OF LAST YEAR. BEHIND THE SCENES THE

ENGINEERING TEAM HAS STRUGGLED TO DELIVER ON PACE. THE COMPANY JUST TOOK CONTROL OF SYRIA AND TOOK AWAY FROM THE EXECUTIVE WHO HAD BEEN OVERSEEING THIS AMBITIOUS UPGRADE AND MOVED IT UNDER THE PERSON WHO BROUGHT US THE VISION OF GROWTH, WHICH ITSELF HAS NOT BEEN A COMMERCIAL HIT, BUT HAS BEEN WELL REGARDED FOR ITS TECHNICAL INNOVATIONS. TIM: I HAVEN'T TRIED IT YET, BUT PEOPLE WHO TALK ABOUT IT RAVED ABOUT IT. BUT YOU DON'T SEE THE SALES

NUMBERS FOR IT AND YOU DON'T BY ANY MEANS SEE IT BEING ONE OF THEIR BLOCKBUSTER DEVICES BY ANY MEANS. I THINK THE QUESTION I HAVE IS -- CONTEXT HERE, IT'S REALLY RARE FOR APPLE TO MAKE A BIG PERSONNEL MOVE LIKE THIS. DANA: IT IS RARE FOR APPLE TO MAKE A PERSONNEL MOVE LIKE THIS, AS YOU SAY. ACCORDING TO OUR OWN REPORTING, IT WAS IN THE WORKS EVEN BEFORE SOME RECENT BOMBSHELLS.

BLOOMBERG REPORTED THAT A DIFFERENT COMPANY EXECUTIVE CALLED THE DELAYS UGLY AND EMBARRASSING, ACCORDING TO BLOOMBERG REPORTING THE MOVE HAD BEEN IN THE WORKS FOR A WHILE. AS YOU SAID, IT DOESN'T USUALLY HAPPEN. A LOT OF INDUSTRY OBSERVERS WERE WAITING FOR SOME SORT OF SHOE TO DROP.

WHETHER IT WAS SOMEONE BEING FIRED, HEADS ROLLING, OR SOMETHING OF THIS NATURE WITH THE PROJECT BEING REASSIGNED TO SOMEONE ELSE. TIM: WE WILL HAVE TO LEAVE THINGS THERE. I WANT TO HEAD TO THE OVERALL OFFICE IN THE WHITE HOUSE WHERE WE ARE HEARING FROM THE PRESIDENT AND THE DEFENSE SECRETARY. >> AMAZING. SHOULD HAVE BEEN DONE YEARS AGO. THEY'VE BEEN TALKING ABOUT IT. FOR MANY YEARS THEY HAVE. NOBODY GOT IT OFF. WE DID. IT WAS GREAT EXCITEMENT.

GREAT ACCEPTANCE. FROM ALMOST EVERYBODY, INCLUDING DEMOCRATS. ACTUALLY. I WANTED US -- WANT TO SAY THAT I'VE DECIDED THAT THE SMALL BUSINESS ADMINISTRATION HEADED BY KELLY LOEFFLER, TERRIFIC PERSON, WILL HANDLE ALL OF THE STUDENT LOAN PORTFOLIO. WE HAVE A LARGE PORTFOLIO. LOTS OF LOANS. TENS OF THOUSANDS OF LOANS. COMPLICATED. THAT'S COMING OUT OF THE

DEPARTMENT OF EDUCATION IMMEDIATELY. IT WILL BE HELD -- HEADED UP BY KELLY LOEFFLER. THEY ARE ALL SET AND WAITING FOR IT. IT WILL BE SERVICED MUCH BETTER THAN IT HAS IN THE PAST. A

MESS, IT'S BEEN. BOBBY KENNEDY, HEALTH AND HUMAN SERVICES, WILL BE HANDLING SPECIAL NEEDS AND ALL OF THE NUTRITION PROGRAMS AND EVERYTHING ELSE. RATHER COMPLEX. THAT'S GOING TO BE HEADED BY AND HANDLED BY HEALTH AND HUMAN SERVICES. I THINK THAT'LL WORK OUT VERY WELL. THOSE TWO ELEMENTS WILL BE TAKEN OUT OF THE DEPARTMENT OF EDUCATION.

ALL WE HAVE TO THEN DO IS GET THE STUDENTS TO GET GUIDANCE FROM THE PEOPLE THAT LOVE THEM AND CHERISH THEM. INCLUDING THEIR PARENTS, WHO WILL BE INVOLVED IN THEIR EDUCATION, ALONG WITH THE BOARDS AND GOVERNORS OF THE STATES. IT'S GOING TO BE A GREAT, GREAT SITUATION. I GUARANTEE THAT IN A FEW YEARS FROM NOW, THEY WILL BE AROUND TO SEE IT.

THEY WILL SEE A LOT OF IT. YOU HAVE TREMENDOUS RESULTS. RESULTS LIKE NORWAY. SWEDEN. DENMARK. A LOT OF THE COUNTRIES THAT DO SO WELL. YOU WILL HAVE A LOT OF THOSE RESULTS. LOOK AT OHIO, INDIANA, IDAHO, SO MANY PLACES THAT RUN SO WELL. FLORIDA. TEXAS. BIG ONES. RATE EDUCATION. BETTER THAN NOW.

HALF THE COSTS. WE AREN'T EVEN DOING IT AS COSTS. THOUGH YOU WILL SAVE HALF. MAYBE MORE? YOU WON'T BE AT THE BOTTOM. YOU WILL BE HIGHER. I WILL GUARANTEE SOME STATES

WILL BE AT THE TOP. COMPARABLE OR BETTER THAN THESE NUMBER ONE, NEVER TWO, NUMBER THREE, NUMBER FOUR, NUMBER FIVE COUNTRIES. COUNTRIES IN THE TOP POSITIONS. TO ME, IT'S VERY EXCITING. IT HAS BEEN RECEIVED VERY WELL.

I WANTED TO TELL YOU ABOUT STUDENT LOANS WITH SPECIAL NEEDS. BUT WE ARE HERE FOR A REASON TODAY THAT IS EXCITING. I'M THRILLED TO ANNOUNCE THAT AT MY DIRECTION, THE UNITED STATES AIR FORCE IS MOVING FORWARD WITH THE WORLD'S FIRST SIX GENERATION FIGHTER JET. NUMBER 66 GENERATION.

NOTHING IN THE WORLD COMES CLOSER TO IT. IT'LL BE KNOWN AS THE 747. THE GENERALS PICKED A TITLE. BEAUTIFUL NUMBER. 47. SOMETHING THE LIKES OF WHICH NOBODY HAS SEEN BEFORE IN TERMS OF ALL OF THE ATTRIBUTES OF A FIGHTER JET. NEVER BEEN ANYTHING CLOSE TO IT, FROM SPEED TO MANEUVERABILITY AND WHAT IT CAN HAVE FOR PAYLOAD.

THIS HAS BEEN IN THE WORKS FOR A LONG TIME. AFTER A RIGOROUS AND THOROUGH COMPETITION BETWEEN SOME OF THE TOP AEROSPACE COMPANIES, THE AIR FORCE WILL BE AWARDING THE CONTRACT FOR THE NEXT GENERATION AIR DOMINANCE PLATFORM TO BOEING . AS YOU KNOW, HIGHLY COMPETED FOR. A LOT OF COMPETITION FOR. IT'S BEEN GOING FOR A LONG TIME, TOUGH COMPETITION. BUT THIS CLAIM HAS PRODUCED NUMBERS EVERYONE -- NO ONE HAS EVER SEEN BEFORE.

THE MOST ADVANCED, MOST PEOPLE, MOST PEOPLE AIRCRAFT EVER BUILT. AN EXPERIMENTAL VERSION OF THE PLANE HAS SECRETLY BEEN FLYING FOR FIVE YEARS. WE ARE CONFIDENT THAT IT MASSIVELY OVERPOWERS THE CAPABILITY OF ANY OTHER NATION. NO OTHER NATION. WE KNOW EVERY PLANE. I'VE SEEN EVERY PLANE. IT'S NOT EVEN HIS CLOSE.

NEXT LEVEL. YOU KNOW? LEVEL FIVE IS GOOD. THEY SAY THIS IS LEVEL SIX. THE F-47 IS EQUIPPED WITH STATE-OF-THE-ART STEALTH TECHNOLOGY. VIRTUALLY ON SEEABLE -- VIRTUALLY NOT SEEABLE. UNPRECEDENTED POWER. MOST POWER OF A JET EVER MADE.

MANEUVERABILITY, LIKEWISE, THERE HAS NEVER BEEN ANYTHING LIKE IT. DESPITE THE POWER AND SPEED. IT'S SPEED IS TOP. OVER TWO. THAT'S SOMETHING YOU DON'T HEAR VERY OFTEN. AMERICA'S ENEMIES WILL NEVER SEE IT COMING. HOPEFULLY WE WON'T HAVE TO USE IT, BUT HAVE TO HAVE IT. IF IT EVER HAPPENS, THEY WON'T

KNOW WHAT THE HELL HIT THEM. HOPEFULLY, THESE MAGNIFICENT PLANES WILL BE BUILT BY THE ADMINISTRATION FOR THE NEXT COUPLE OF YEARS. READY TO GO. THEY'VE ALREADY BUILT MUCH OF WHAT HAS TO BE BUILT IN TERMS OF PRODUCTION, INCLUDING THE SHEDS. THE USA WILL CONTINUE TO DOMINATE THE SKIES.

WE'VE GIVEN AN ORDER FOR A LOT. CAN'T TELL YOU THE PRICE. IT WOULD GIVE WAY TO SOME OF THE TECHNOLOGY AND THE SIZE OF THE PLANE. BIG SIZE PLANE. THIS CONTRACT ALSO REPRESENTS A HISTORIC INVESTMENT IN OUR DEFENSE INDUSTRIAL BASE, KEEPING AMERICA AT THE CUTTING EDGE OF AEROSPACE AND TECHNOLOGY. OUR ALLIES ARE CALLING CONSTANTLY. THEY WANT TO BUY THEM. WE WILL FOR SURE BE SELLING THEM. BABY TONED DOWN VERSIONS. WE LIKE TO TONE THEM DOWN ABOUT

10%, WHICH MAKES SENSE. SOMEDAY MAYBE THEY ARE NOT OUR ALLIES, RIGHT? I WOULD LIKE TO HAVE SECRETARY HEGSETH, WHO IS FANTASTIC. DOING A FANTASTIC JOB. VERY INSPIRING. I MUST SAY, BEFORE HE SPEAKS WE HAVE HAD RECORD PEOPLE WANTING TO JOIN THE MILITARY IN THE LAST TWO AND A HALF MONTHS. LITERALLY SINCE -- I THINK SINCE THE ELECTION, NOVEMBER 5, BUT ESSENTIALLY SINCE WE CAME TO OFFICE AND SINCE I ANNOUNCED PETE. HE'S YOUNG, HE'S SMART, HE'S STRONG, THEY LOVE IT. HE LOVES THEM.

RECORD NUMBERS OF PEOPLE HAVE WANTED TO JOIN THE MILITARY. GOING BACK SIX MONTHS, IT WAS THE EXACT OPPOSITE. RECORD NUMBERS NOT WANTING. NOW RECORD NUMBERS WANTING TO BE IN THE MILITARY. THAT'S A REALLY GREAT, THAT

SHOWS WHO WE ARE ON THE RIGHT TRACK. PETE, SAY A FEW WORDS. >> MR. PRESIDENT, THIS IS A BIG DAY FOR OUR WAR FIGHTING. A BIG DAY FOR OUR COUNTRY. THE NAME OF THIS PROGRAM IS THE

NEXT GENERATION OF AIR DOMINANCE. BECAUSE OF YOUR LEADERSHIP, YOUR CLARITY, WE ARE GOING TO, AMERICA IS GOING TO HAVE GENERATIONS IN THE FUTURE OF THIS AIR DOMINANCE BECAUSE OF THIS SIX GENERATION FIGHTER. NOW WE HAVE THE F-47. IT SENDS A DIRECT, CLEAR

MESSAGE TO OUR ALLY. OUR ALLIES. WE ARE NOT GOING ANYWHERE. TO OUR ENEMIES, WE WILL BE ABLE TO PROJECT POWER AROUND THE GLOBE UNIMPEDED. THIS IS A GIFT TO MY KIDS, YOUR KIDS, MY GRANDKIDS, YOUR GRANDKIDS. A HISTORIC INVESTMENT IN AMERICAN INDUSTRY THAT WILL HELP REVIVE THE WARRIOR ETHOS INSIDE THE MILITARY, REBUILD THE MILITARY, WHICH THE PREVIOUS ADMINISTRATION DIDN'T DO.

THEY PAUSED OF THIS PROGRAM AND WERE PREPARED TO POTENTIALLY SCRAP IT. IT'S CHEAPER, MORE LONG-RANGE, STEALTHY. THE PRESIDENT SAID WE ARE REVIVING IT AND DOING IT. UNDER THE PREVIOUS ADMINISTRATION, WE LACKED DETERRENCE, BUT PRESIDENT TRUMP AS MADE IT PART OF IT.

>> THANK YOU. ONE THING I WILL SAY, BUT THE GENERALS ARE GOING TO SPEAK IN A COUPLE OF SECONDS, THIS PLANE FLIES WITH DRONES, MANY MANY DRONES, AS MANY AS YOU WANT. THE TECHNOLOGY IS NEW, BUT IT DOESN'T FLY BY ITSELF.

IT FLIES WITH AS MANY DRONES AS WE WANT. THAT IS SOMETHING NO OTHER PLANE CAN DO. I WOULD LIKE TO INTRODUCE THE AIR FORCE CHIEF OF STAFF, GENERAL ALLMAN AND GENERAL WHITE , TWO FEDERAL PEOPLE I HAVE KNOWN OVER THE YEARS BUT THAT I GOT TO KNOW REALLY WELL OVER THE LAST FEW MONTHS. WOULD YOU SAY A FEW WORDS, PLEASE? >> THANK YOU VERY MUCH. MR. PRESIDENT, MR. SECRETARY, THANK YOU SO MUCH FOR YOUR UNWAVERING COMMITMENT TO THE MILITARY. THIS IS A BIG DAY FOR THE U.S. AIR FORCE. AIR DOMINANCE IS NOT A

BIRTHRIGHT. BUT IT HAS BECOME SYNONYMOUS WITH AMERICAN AIRPOWER. DOMINANCE NEEDS TO BE EARNED EVERY SINGLE DAY. SINCE THE EARLIEST DAYS OF AERIAL WARFARE, BRAVE AIRMEN HAVE JUMPED INTO THEIR MACHINES, TAKE INTO THE AIR AND CLEAR THE SKIES. WHETHER IT IS CLEARING THE SKIES TO BRING DOWN DESTRUCTION OR CLEARING THE PATH FOR GROUND FORCES, THAT HAS BEEN OUR COMMITMENT TO THE FIGHT AND A PROMISE TO AMERICA.

WITH THIS F 47 -- F-47 IN THE CROWN JEWEL OF SYSTEMS, WE WILL BE ABLE TO KEEP THE PROMISE WELL INTO THE FUTURE. I WANT TO THANK EVERYONE, FROM INDUSTRY AND THE GOVERNMENT, OUR ENGINEERS, WHO HAVE WORKED TIRELESSLY ON THIS PROGRAM TO BRING THE WORK TO WHERE IT IS TODAY. IT SHOWS THAT AMERICAN TALENT, SKILL, AND DETERMINATION ARE SECOND TO NONE, BECAUSE THIS FIGHTER IS SECOND TO NONE.

WE BELIEVE THIS PROVIDES MORE LOOK OUT, MORE CAPABILITY, MORE MODERN CAPABILITY IN A WAY THAT IS BUILT TO ADAPT. THIS ALONG WITH OUR COMBAT AIRCRAFT THAT THE PRESIDENT TALKED ABOUT, THIS IS ALLOWING US TO LOOK INTO THE FUTURE AND UNLOCK THE MAGIC THAT IS HUMAN MACHINE. WITH THAT WE WILL UNLOCK THE NEXT GENERATION OF MODERN AERIAL WARFARE. THIS ENABLES US TO DO IT.

THE MANNER IN WHICH WE PUT THE PROGRAM TOGETHER PUTS MORE CONTROL IN THE HANDS OF THE GOVERNMENT, SO THAT WE CAN UPDATE AT THE SPEED OF TECHNOLOGY. THIS IS MORE AIR FORCE. MORE OPTIONS FOR THE PRESIDENT. WE CALLED IT OUR MISSION IN THE AIR FORCE. ANYTIME, ANYWHERE, YOU HAVE TO HAVE A PLATFORM THAT GETS YOU THERE. IT GIVES YOU OPTIONS FROM THE ONE END, WHICH IS A QUICK RESPONSE THAT WE GET RIGHT BACK INTO FIGHT STANCE WITHOUT HAVING TO DEPLOY TROOPS THAT COULD TAKE MONTHS AND COSTS MORE LIVES, ALL THE WAY TO DECISIVE VICTORY AS A PART OF A JOINT FORCE THAT IS THE MOST CAPABLE MILITARY EVER IN HISTORY. THAT IS WHAT WE PROVIDE NOW. THIS ALLOWS US TO PROVIDE IT

INTO THE FUTURE. MORE DETERRENCE, MORE CAPABILITY, IT'S WHAT IT LOOKS LIKE IN THE FUTURE. WE ARE PROUD. ALL THAT WE CAN SAY IS THAT ON BEHALF OF THE U.S. AIR FORCE, LET'S DELIVER. >> I WANT TO REITERATE WHAT THE CHIEF SAID.

>> QUESTIONS? >> GREAT JOB. WE HAVE WORKED TOGETHER LONG AND HARD ON THIS. THIS IS A BIG SECRET. WE DON'T SHOW IT TOO MUCH. TIM: THERE YOU HAVE IT, TRUMP ALONG WITH PETE HEGSETH, AND WE HEARD FROM THE CHIEF OF STAFF OF THE AIR FORCE AS WELL, GETTING QUITE A FEW HEADLINES ON THIS STORY. PRESIDENT TRUMP HAS SAID THAT THE F 47 WILL BE BUILT DURING HIS ADMINISTRATION. THE AIR FORCE PROCEEDED WITH THE FIGHTER JET. THE AIR FORCE WILL AWARD THE

CONTRACT TO BOEING. IN RESPONSE, WE SAW SHARES HIGHER ON THE NEWS. LOCKHEED MARTIN SHARES ARE FALLING. HE SAID THAT HIS EXPERIMENTAL

VERSION HAS BEEN FLYING FOR ALMOST FIVE YEARS AND THAT IT WILL BE BUILT DURING HIS ADMINISTRATION. THIS NEXT GENERATION OF FIGHTER JET, HE SAID, WOULD FLY WITH DRONES. IT'S ALREADY BRINGING AN INTEREST FROM ALLIES. FOR MORE, WE HAVE TYLER KENDALL, JOINING US FROM WASHINGTON, D.C.. TYLER, GOOD TO SEE YOU. WHAT DO WE KNOW ABOUT THIS F-47, THE TECHNOLOGY THAT ALLOWS IT TO FLY WITH DRONES? TYLER: BLOOMBERG NEWS REPORTED THAT THE AIR FORCE ALLOCATED $20 BILLION AROUND THE RESEARCH AND DEVELOPMENT OF THIS EFFORT. BOEING BEATING OUT LOCKHEED MARTIN FOR THIS CONTRACT THAT COULD BE WORTH MULTI-BILLIONS OF DOLLARS. THIS WAS A TWO-YEAR EDITING PROCESS FOR THESE COMPANIES PUTTING FORWARD THAT FULL-SCALE PROPOSAL FOR THIS NEW GENERATION OF FIGHTER JETS WORKING IN TANDEM WITH DRONES.

YOU HEARD TRUMP EMPHASIZING HOW CRITICALLY IMPORTANT IT IS AS THEY MOVED TO THIS NEXT GENERATION. NOT A LOT ABOUT THE PROGRAM IS KNOWN. IT'S MEANT TO REPLACE THE LOCKHEED MARTIN F-22 RAPTOR STEALTH JETS CURRENTLY IN THE SKY. THE GOAL IS TO HAVE THIS OPERATIONAL BY 2030. YOU MENTIONED ALLIES, SOMETHING IMPORTANT THAT TRUMP MENTIONED.

WE KNOW A LOT OF THIS IS GEARING UP FOR OUR COMPETITION WITH CHINA. A LOT OF THIS IS WHAT WE'VE SEEN IN RECENT WEEKS, BULKING UP WHEN IT COMES TO BEING MILITARY AGAINST CHINA. ONE OTHER HEADLINE WE SAW TODAY, ELON MUSK AT THE PENTAGON, REPORTING INDICATING THAT THIS PROGRAM IN PARTICULAR, THERE MIGHT HAVE BEEN BUDGET CONSTRAINTS AS ELON MUSK LOOKS FORWARD TO HIS DOGE COST-CUTTING, PETE HEGSETH ANNOUNCED 580 MILLION DOLLARS IN PROGRAMS WILL BE CUT AT THE DEPARTMENT OF DEFENSE. PALING IN COMPARISON TO THE NUMBERS WE ARE TALKING ABOUT FOR THIS PROGRAM. IT BRINGS THE DOD COST-CUTTING MEASURES TO $800 MILLION SINCE PETE HEGSETH WAS SWORN IN. YOU'VE DONE A LOT OF REPORTING ON THE WEAPONS OF THE FUTURE. PALANTIR, SPACEX.

BOEING IS A TRADITIONAL SCHOOL DEFENSE CONTRACTOR. WHERE DOES THIS FIT IN WITH THE MODERNIZATION OF THE ARMED FORCES? THE DEFENSE INDUSTRIAL BASE SHRINK BY 40% OVER THE LAST DECADE ACCORDING TO THE DOD, WHO SAID THEY WANT TO TRY TO GET IN THE SMALLER CONTRACTORS TO COMPETE WITH BIG DEFENSE, REFERENCING THE REPORTING I DID A FEW MONTHS AGO WHERE I HAD THE CHANCE TO SIT DOWN WITH GENERAL RANDY GEORGE, THE HIGHEST RANKING MILITARY OFFICIAL IN THE ARMY. HE IS TRYING TO PUT FORWARD A PATH THAT WOULD MAKE THE ACQUISITION PROCESS EASIER AND INSTEAD LOOK TO SHORT-TERM CONTRACTS, MULTI-DECADE CONTRACTS. MAKING IT EASIER TO DO BUSINESS, THEY OFTEN TOLD ME THAT THEY WILL PUT IN PURCHASE ORDERS. BY THE TIME THE WEAPONS GET ON THE BATTLEFIELD, THEY END UP OBSOLETE. THIS WILL BE A DECADES LONG MULTIBILLION-DOLLAR PROJECT THAT THEY'VE BEEN COMPETING FOR. TIM:

TYLER KENDALL, JOINING US FROM WASHINGTON, D.C., THANK YOU, APPRECIATE THAT. STICKING WITH WHAT'S HAPPENING IN D.C., EARLIER THIS WEEK TRUMP FIRED TWO DEMOCRATIC MEMBERS OF THE FTC, QUESTIONS HAVING BEEN RAISED ABOUT HOW MUCH INFLUENCE THE WHITE HOUSE MIGHT EXERT.

JOINING US NOW IS WILLIAM, PROFESSOR OF THE GEORGE WASHINGTON SCHOOL OF LAW. HOW DID YOU LOOK AT THESE FIRINGS EARLIER THIS WEEK? I KNOW IT ALARMED CERTAIN FOLKS WHO WATCHED THE AGENCY CLOSELY. >> AS FAR AS THE FTC GOES, THERE WAS AN INEVITABILITY THAT THE REPUBLICANS WOULD GET CONTROL OF IT.

THERE IS A NOMINEE PENDING. DANIEL BETTER. IN A SHORT TIME, A WORKING MAJORITY OF THREE REPUBLICANS WOULD HAVE THE VOTES TO DO WHAT THEY WANTED. IN THE REGULATORY PROCESS, THE WHITE HOUSE WAS DETERMINED TO GET MORE CONTROL OVER HOW THE AGENCIES OPERATE AND BEND THE PROGRAMS MORE IN THE DIRECTION THE PRESIDENT PREFERS. AGENCY LEADERSHIP SAID THEY WANTED TO PRESS AHEAD WITH THE BIG TECH CASES NOW.

AT THE SAME TIME, THEY SAID THEY WANTED TO CREATE AN ENVIRONMENT MORE FAVORABLE FOR DEALMAKING IN TERMS OF TOLERATING SETTLEMENTS AND ESTABLISHING A TIMELINE MORE PREDICTABLE AND RELIABLE. THIS IS A PART OF A LARGER EFFORT ACROSS THE GOVERNMENT FOR THE WHITE HOUSE TO ACHIEVE GREATER CONTROL OVER THE REGULATORY PROCESS AND HOW IT OPERATES, INCLUDING FOR BIG TECH AND ANTITRUST. TIM: I HEARD TWO THINGS. ONE, GOING HARD ON BIG TECH, CRACKDOWN. I GUESS SOME OBSERVERS MIGHT POINT THAT OUT, OTHERS MIGHT NOT AGREE. THE OTHER PART IS WE WANT A

FRIENDLIER REGULATORY ENVIRONMENT. WE WANT TO COMMUNICATE A REGULATORY ENVIRONMENT OPENING UP M&A. HOW DO THOSE THINGS COEXIST? >> ONE WAY TO RECONCILE THEM IS THE BIDEN ADMINISTRATION THAT WAS SKEPTICAL ABOUT SETTLEMENTS AS A WAY TO RESOLVE PROBLEMS.

SETTLEMENTS THAT WOULD INVOLVE INVESTOR TOURS AND CONDUCT RELATED SOLUTIONS. THE FEDERAL TRADE COMMISSION AND DEPARTMENT OF JUSTICE ANTITRUST COMMISSION SAID SETTLEMENTS BELONG IN THE SOLUTION SET. IN THE PACKAGE THAT THEY REGARD AS ACCEPTABLE, ITS CONDUCT RELATED SOLUTIONS. A WIDER PATH FOR DEALMAKERS TO COME FORWARD WITH SOLUTIONS TO PROBLEMS THAT MIGHT HAVE OTHERWISE LED THE AGENCIES TO GO DIRECTLY TO COURT. THERE IS A COMMITMENT TO BEAR DOWN ON MERGERS. A GREATER WILLINGNESS TO ACCEPT SOLUTIONS. THINGS THE PREVIOUS ADMINISTRATION TRY TO SLAM THE

DOOR ON. TIM: IT'S INTERESTING, IN THE PAST WE HEARD THAT VICE PRESIDENT JD VANCE THOUGHT LINA KHAN WAS DOING A GREAT JOB. IT RAISES THE QUESTION OF THE CONTINUATION OF POLICY BETWEEN HER FTC AND ANDREW FERGUSON'S. DO YOU EXPECT THE FTC AND THE DOJ TO CONTINUE TO MOVE FORWARD IN CASES AGAINST GOOGLE, APPLE, META, AND AMAZON? >> I EXPECT IT WILL CONTINUE. IT'S BEEN INTERESTING TO WATCH

HOW THE FTC CHAIR HAS ESPECIALLY EMPHASIZED HOW MANY OF THESE INITIATIVES BEGAN AT THE END OF THE FIRST TRUMP PRESIDENCY. THE CASE INVOLVING GOOGLE SEARCH BEGAN AT THE END OF TRUMP'S FIRST TERM. THE FTC CASE AGAINST META FOR MONOPOLIZATION BEGAN IN 2020. THE INVESTIGATION OF APPLE BEGAN IN 2020. ONE MESSAGE FROM LEADERSHIP IS THAT WE ARE THE ONES WHO STARTED THIS AND ARE THE ONES WHO BROUGHT THIS SCRUTINY TO BEAR. WE WILL CARRY FORWARD WITH THOSE.

IN A WAY, IT'S AN EFFORT TO CLAIM CREDIT FOR THE DEVELOPMENT OF THE NEWER APPROACH TO COMPETITION LAW. AT THE SAME TIME, CHAIR FERGUSON MAKES A POINT OF SAYING THAT THE BIDEN HARRIS ANTITRUST ERA IS OVER. THE CON CHAIRMANSHIP AND POLICY IS OVER. WHAT THEY NEED TO BE SAYING THERE IS WE WILL BE MORE WILLING TO CONSIDER SOLUTIONS TO MERGERS THAT STOP SHORT OF ABSOLUTE PROHIBITIONS. THERE WILL BE MORE CLARITY AND CERTAINTY AROUND THE REVIEW PROCESS. WE WON'T GAME THE SYSTEM.

WE WON'T STRETCH OUT THE TIMELINE TO GIVE COMPANIES A PAUSE TO CONSIDER WHETHER THEY WANT TO GO AHEAD. WITH RESPECT IN PARTICULAR, THEY WILL BE SAYING THAT WE AREN'T GOING TO CREATE AN ENVIRONMENT AS DEMANDING AS BEFORE. BOTH OF THE LEADERS FACED SOMETHING THAT A REPUBLICAN NOMINEE TO THE AGENCIES ALWAYS FACED. A CONVENTIONAL STORY FOR ACADEMICS IS A PART OF CREATING THAT STORY.

THIS STORY IS THAT REPUBLICANS ARE OPENING THE GATES, SAYING THINGS IN THE BEGINNING AND THEN SAY NOT SO FAST. TIM: BILL, GOOD TO SEE YOU, THANKS FOR JOINING US. WE WANT TO BRING IN RYAN TO WRAP UP THE WEEK AND MARKETS. BIG FOCUS, NEWS OUT OF NVIDIA. IT DOESN'T LOOK LIKE THIS WAS THE CATALYST THAT NVIDIA INVESTORS WANTED TO SEE. ALSO, THE GREATER TECH INDUSTRY

AND WHAT THEY WANTED TO SEE. WHAT IS THE CONSEQUENCE OF THAT? THANKS FOR HAVING ME ON. -- >> THANKS FOR HAVING ME ON. THERE HAVE BEEN A LOT OF OPTIMISM ABOUT THE PIPELINE IN THE ROADMAP GOING FORWARD, BUT IT WASN'T ENOUGH TO AVERT THE WEAKNESS. THERE CONTINUES TO BE UNCERTAINTY AROUND POLICIES AND UNCERTAINTY AROUND TARIFFS. THE OUTLOOK FOR THE ECONOMY, IT'S ALL BEEN WAITING ON TECH IN PARTICULAR, ALTHOUGH LOSSES HAVE BEEN WIDESPREAD. A COUPLE OF STATS CAUGHT MY

ATTENTION EARLIER TODAY. THE FIFTH STRAIGHT WEEKLY DROP FOR THE NASDAQ 100, ITS LONGEST SINCE MAY OF 2022 AND MICROSOFT IS ON TRACK FOR ITS EIGHTH WEEKLY DROP SINCE FEBRUARY OF 2008. THE LEVEL OF SELLING THAT WE HAVE SEEN TODAY, WE HAVE SEEN THE MAG SEVEN FALL INTO A CORRECTION. THERE HAS BEEN A LOT OF BROAD-BASED WEAKNESS. HOWEVER, WE MIGHT START TO SEE SOME PEOPLE BUYING THE DIP. VALUATIONS HAVE REALLY COME OFF FROM BEHIND AND WE MIGHT BE BUILDING A BASE.

THAT'S THE QUESTION -- TIM: ALL RIGHT, THAT'S A QUESTION. THANK YOU, RYAN. THAT WILL DO IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." DON'T FORGET OUR PODCAST, ON THE TERMINAL, APPLE PODCASTS,

2025-03-28 17:01

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